2012-09-13 Work Session Kodiak Island Borough
Assembly Work Session
Thursday, September 13, 2012, 7:30 p.m., Borough Conference Room
Work Sessions are informal meetings of the Assembly where Assembly members review the upcoming regular meeting agenda packet
and seek or receive information from staff. Although additional items not listed on the work session agenda are discussed when
introduced by the Mayor, Assembly, or staff, no formal action is taken at work sessions and items that require formal Assembly action
are placed on regular Assembly meeting agenda. Citizen's comments at work sessions are NOT considered part of the official record.
Citizen's comments intended for the "official record" should be made at a regular Assembly meeting.
CITIZENS' COMMENTS (Limited to Three Minutes per Speaker)
ITEMS FOR DISCUSSION
1. Fox Lawson Presentation
2. Upcoming Legislative Session /State Legislative Priority List - Borough Lobbyist Mark
Hickey
3. DRAFT Resolution No. FY2013 -11 Long Term Care Center Lease with PKIMC
PACKET REVIEW
PUBLIC HEARING - None.
State of Alaska Alcoholic Beverage Board Liquor License Application for a New Liquor
License with a Restaurant Designation. Licensee /Applicant: Crystal, LLC, D.B.A. Noodles.
Ordinance No. FY2013 -02 Approving a Rezone for Lot 25A, Block 7 Leite Addition from R1- Single
Family Residential to R3- Multifamily Residential (P &Z Case 13 -001, Wittenbrader).
UNFINISHED BUSINESS - None.
NEW BUSINESS
CONTRACTS - None.
RESOLUTIONS
Resolution No. FY2013 -09 A Joint Kodiak Island Borough Assembly and Kodiak City Council
Resolution Supporting the Overall Approach to Fishery Issues by the Kodiak Fisheries Workgroup.
Resolution No. FY2013 -10 A Joint Kodiak Island Borough Assembly and Kodiak City Council
Resolution Supporting Comments to the North Pacific Fishery Management Council on Pending
Actions Regarding Comprehensive Management of Prohibited Species Catch (PSC) by the Trawl
Fishery in the Central Gulf of Alaska.
Resolution No. FY2013 -12 Adopting a State Legislative Capital Improvement Projects Priority List
for the 2013 Legislative Session.
ORDINANCES FOR INTRODUCTION
Ordinance No. FY2013 -01A Amending Ordinance No. FY2013 -01 Fiscal Year 2013 Budget by
Accepting Three Grants.
Ordinance No. FY2013 -03 Amending Section 411.2 Longevity Pay of the Personnel Manual.
Ordinance No. FY2013 -04 Amending Section 707 Sick Leave of the Personnel Manual.
OTHER ITEMS
as Approval of the October 2, 2012 Regular Municipal Election Workers.
MANAGER'S COMMENTS
MAYOR'S COMMENTS
ASSEMBLY MEMBERS' COMMENTS
CLERK'S COMMENTS
Hickey & Associates
Planning * Management * Lobbying
Telephone (907) 586 -2263 211 Fourth Street; Suite 108; Juneau, AK 99801
Fax (907) 586 -1097 E -mail mshickey@aci.net
eci.net
Memorandum
To: Mayor Jerome Selby, Borough Assembly &
Acting Manager Bud Cassidy
From: Mark Hickey, Borough Lobbyist
Date: September 7, 2012
Subject: Lobbyist Report
This memorandum provides a brief report on items of interest since session.
FY 2013 Capital Budget Vetoes: There were no vetoes of Kodiak projects contained in the FY
2013 capital budget by Governor Parnell. Very few vetoes occurred this year since the
Legislature kept the total level of spending within the parameters laid out by the Governor.
Additional FY 2013 Revenue Sharing & K -12 Funding: The approved FY 2013 capital
budget included one -time appropriations of an additional $25 million for revenue sharing and an
additional $25 million for K -12 education.
Primary Election Results /2013 Legislative Organizations: Two Republican members of the
Senate Working Group (Senators Wagoner & Menard) lost their primary races to challengers.
Four or five others (Senators Davis, French, Wielechowski, Thomas & Paskvan) face tough
races. While it is likely there will be a balance of 12 or more Republicans Senators compared to
8 or fewer Democrats, it is also likely there will be 12 or 13 surviving members of the Working
Group. On the House side, there will be several new members, but the Republicans should retain
control with a comfortable margin. I would expect a similar House organization to the one in
place for the last two years, including 2 or 3 rural Democrats as part of the majority.
FY 2013 & FY 2014 Revenue Projections: The approved FY 2013 budget assumes an average
price of $104 per barrel of ANS crude. The current price is around $111 per barrel. The average
price this year has generally exceeded $104 per barrel. The state's fall revenue forecast is not
out yet. The average price forecasted for FY 2014 will likely remain near the current forecast of
$110 per barrel, but we will continue to see a decline in total production. Overall spending for
FY 2014 will likely be less than the current year.
KIB Lobbyist Report 1 September 7, 2012
FY 2014 Capital Budget: Assuming there is a reduction in total spending in FY 2014 compared
to FY 2013, spending for capital projects will likely absorb the majority of this impact. While
Governor Parnell has not presented his expectations about acceptable spending levels for the
next fiscal year, he will likely advocate for additional fiscal restraint and increased savings.
Coastal Zone Management Program Ballot Measure Fails: Ballot proposition 2 was soundly
defeated by a margin of nearly two -to -one. Whether the Legislature will now take up the matter
next session remains to be seen. It is also unclear if the Parnell Administration is willing to
entertain re- enacting the program along the lines of the proposals debated in 2011.
GO Transportation Bond Package: HB 286, which proposes about $454 million in GO bonds
for transportation projects, passed the Legislature and was signed by Governor Parnell. This
measure will be in front of voters on the general ballot this November. Included in the proposed
projects is $15 million for the Kodiak Pier III Replacement Project. Another $18.1 million for
this project was funded in the approved FY 2013 capital budget.
Please let me know if there are any questions.
KIB Lobbyist Report 2 September 7, 2012
as KODIAK ISLAND BOROUGH
AGENDA STATEMENT
!p 44„
Choose meeting type. SEPTEMBER 13, 2012 ITEM NO.: WS #3
TITLE: Resolution No. FY2013 -12 Authorizing A Lease With Providence Health And
Services For Operation Of A Long Term Care Center
ORIGINATOR: Borough Manager
FISCAL IMPACT: ❑ Yes $ or ® No Funds Available ❑ Yes ® No
Account Number: Amount Budgeted:
ATTACHMENTS: Staff Memo, Resolution No. FY2013 -12, Lease
APPROVAL FOR AGENDA:
SUMMARY STATEMENT:
In accordance with KIBC 18.40.020 Negotiated Leases, the Assembly may lease land for a
period not to exceed 25 years to a non - profit corporation at a reasonable rental rate taking into
consideration the purpose for which the real property is to be used.
Providence Health and Services will operate a 24 bed long term facility that replaces the facility
presently located in the Providence Kodiak Island Medical Center. This facility provides a
residential like setting for its patents. The term of the lease is for 20 years. The rental rate is
structured on the repayment of revenue bond debt including interest that will be used to
construct the facility. The rental rate will be in the neighborhood of $66,000 a month. Other
negotiated provisions of the lease are found in the document titled LONG -TERM CARE
CENTER LEASE AGREEMENT.
The bottom line of the agreement is that the Borough is obligated to construct a Long Term
Care Facility and Providence, with experience in operating long term care facilites, is obligated
to perform the day to day operation of this facility.
RECOMMENDED MOTION: Move to adopt Resolution No. FY2013 -12.
Kodiak Island Borough Page 1 of 1
KODIAK ISLAND BOROUGH
WORK SESSION
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