Minutes of the Regular Meeting

Denali Borough Assembly

Tri Valley Community Center

April 14, 2002

 

CALL TO ORDER    Presiding Officer Jerry Mueller called the regular meeting to order at 3:00 pm.

 

ROLL CALL               Assembly members present were: Sid Michaels, Jim Caswell, Jerry Mueller, Teresa Hall, Teresa Usibelli, Dave Talerico, Gerald Pollock, Carol Shields, and Mayor Gonzales.  Assembly member Jim Payne was absent. 

 

HALL MOVED to excuse PAYNE.  SHIELDS seconded, and the VOTE was unanimous. 

 

AGENDA                   HALL MOVED to approve the agenda, and SHIELDS seconded.

 

HALL requested that the Representatives from GVEA and AIDEA be allowed to make their presentation next.  There were no objections from the Assembly.  The agenda was approved as amended by unanimous consent. 

 

APPEARANCES      The following individuals were in attendance: Mr. Steve Haagenson, Ms. Kate Lamal, Mr. Mike Wright from GVEA, and Mr. Bob Poe from AIDEA.  Ms. Althea St. Martin, Special Assistant to Senator Murkowski was also in attendance.  Mr. Joe Fields, representing Kantishna Holdings, was also in attendance.

 

                                    Mr. Mike Wright, Vice President of Power Distribution for GVEA, gave a brief update concerning the Intertie Project.  During his update he said seven of the eleven towers are erected.  He said the ice roads are no longer travelable, and work will resume once the weather allowed for the ice bridges to be reconstructed.   

 

                                    Ms. Kate Lamal, Vice President of Energy Supply for GVEA, said the Healy Clean Coal Project (HCCP) is one of her job responsibilities.  She said GVEA is a co-op, so they must provide the cheapest and most reliable electricity to their members.  She said those concerns are what they base all of their decisions on.  Lamal said when GVEA entered into the agreement with the other participants; she said they did it with their eyes open, knowing that the project was experimental.  She said they did not want to be strapped with a plant that was more expensive than any other option they had on the grid.  Lamal said economic and safety concerns were also important. 

 

Lamal said the HCCP has been shut down since the 90 day test, at which time GVEA refused to accept the plant as is.  She said during the two years it was operational, it operated less than 57% of the time, and at less than 40% capacity.  Lamal said GVEA is committed to getting HCCP operational!  She said they believe the way to get that plant operational is to be retrofitted with the type of technology that Unit One has in it.  Unit One was retrofitted in 1996 through 1997, and is operating successfully.  She said the plant needs to have money to be retrofitted. 

 

Lamal said they have approached Senator Murkowski and asked for a loan that would help pay for the retrofit.  She asked that people write letters of support to Senator Murkowski and Senator Stevens.  

 

                                    Healy resident Bill Bailey asked if GVEA has thought about mixing the coal with other things, such as ground tires.  Lamal said they would look into that idea.

 

                                    CASWELL asked what GVEA thought would be an acceptable target cost per kilowatt.  Lamal said four cents. 

 

                                    Denali Borough School District Superintendent Chris Hagar asked how the new Intertie would affect the cost and reliability of the power.  Mike Wright said reliability will increase and cost will decrease.

 

                                    CASWELL asked why would he want the Intertie when that could be perceived as a threat to his current employment.  Wright said with a second line they would have additional power capacity.  He said they would be able to run both Healy one and Healy two.   

 

                                    TALERICO questioned the 90-day test period.  He said with a plant that size, he thought the test period should have been longer.

 

Haagenson said the 90-day test period was part of the contractual agreement.  He said the plant was run for about one and a half years before that.  He also said the safety and reliability goals had not been met.  He said GVEA was not satisfied with the operation of the plant. 

 

MICHAELS asked for a retrofit time line. 

 

Haagenson said about two years, and after that the plant should run for 35 to 50 years.

 

USIBELLI asked if after changing the technology would the plant need a new permit.  Lamal said yes, and they are in that process right now.

 

Nancy Bale, Anchorage resident, asked if an administrative revision was allowed by DEC.  Lamal said DEC declined that revision.

 

Lamal said another option would be a PSD avoidance or go into full PSD.  Lamal said when HCCP was first permitted, it was titled a modification to unit one, and the emission levels were established such that in the event that the technology failed, the standard technology would still apply.  In 1993 the permit was contested by the Park Service, and in an agreement with them the provisions of that agreement, unit one would be retrofitted.  Lamal said the emissions that unit one was allowed prior to the construction of HCCP were not going to be the cap for both units.  She said what that means is instead of getting 25 megawatts as an emission cap; they would get 75 megawatts as an emission cap.

 

Lamal said a PSD is a Prevention of Significant Degradation.  She said that type of review looks at new technologies and air quality monitoring.  Lamal said a substantial effort was made to monitor the visibility of the plant emissions.  She said during the two yeas the plant was running they conducted visibility monitoring as well. 

 

Healy resident Tammy Scholton asked how much cleaner the air would be with the new technology in place.  Lamal said there would be no change in the emissions.   Scholton asked if there had been any research done to make the plant function better.  Lamal said GVEA employees can operate both plants from one location.  GVEA, as small as it is, cannot afford to have an experiment in Healy.  She said the HCCP is the first and only one of its kind.  She said there are no spare parts, etc.

 

Healy resident Charlie Loeb asked if the loan goes through, then when does GVEA take over operation of the plant, and when that occurs does GVEA still have a financial obligation to AIDEA.   

 

Haagenson said GVEA is in favor of completing a full retrofit, and anything else would be just a short-term fix.  He said the loan would allow the retrofit to take place.  He said they are also considering applying for a grant. 

 

CASWELL asked what the difference in the cost of power (based on parasitic load) would be between the existing technology and the new technology.  Parasitic load means how much power it takes to run the power plant and all of it’s subsystems.  Lamal said it would go from 13% to 8-9%.

 

                                    Dave Hoffman, Healy Power Plant Superintendent said unit one is

                                    running at about 2.8 megawatts.  He said the parasitic load for the

HCCP should be about 9-10 megawatts.  He said their target is four cents a kilowatt-hour. 

 

Healy resident Rebecca Skrivanek said she could hear the power plant from her house!  Lamal said a noise study was done and they have made some modifications in an attempt to rectify the noise problem.  

 

Healy resident Nancy Russell asked if the ice fog created by the plant will continue.  Lamal said if the ambient conditions are correct, there will still be ice fog in Healy at certain times of the year.  

 

Discussion followed and Wright said once the retrofit occurs the plant will be running the same way it was during the two years it was operating. 

 

CASWELL asked what it would cost for a partial retrofit. 

 

Lamal said in their assessment of the plant, the more money they put in, the more reliable the plant will become.  She said that’s a very hard question to answer.  Lamal said if you look at AIDEA’s list and GVEA’s list, both are very different.  She said it would take the involved parties to get together and decide what to move forward with. 

 

Healy resident Colin Keith said recently he saw a GVEA ad that says there has not been an increase in cost since Jay Hammond was Governor. He said that’s admirable, but it seems to him that the HCCP could use some tweaking.  He said several months ago there were some discussions about the possibility of Usibelli Coal Mine operating the HCCP.  He said during those discussions someone walked away from the table.  Keith asked GVEA to address this issue.

 

Healy resident Joe Usibelli Jr. was in attendance and said he didn’t walk away!

 

Haagenson said it all boils down to economics.  He said less paid for an operational power plant, the less reliable it would be.  He said there is a 40-megawatt battery back up there that last 15 minutes.    He said it’s 4 cents now, and if the plant were to keep tripping, then that would go down to two to three cents.  He said GVEA wants a reliable, long-term commercially viable plant.  Wright said GVEA still believes the way to do it is to do it correctly by doing a full retrofit! He said the Department of Energy is happy with the technology because they know it works.  He said their goals are much different than anyone else’s.

 

Keith asked again who walked away from the bargaining table.  He said if it was GVEA he wants know why.  Lamal said the only way that plant is going to be economically viable is combining it with unit one and run it as a single plant, and use the same trained work force.  She said GVEA thinks the best way to run it is to have GVEA operate the plant.

 

CASWELL asked that he knows that one of GVEA’s tasks is to provide power at the lowest possible cost.  He said if under some scenario this plant were operational, how much more would he have to pay on his bill.

 

Wright said about $6.00 a month for a residential customer.

 

CASWELL said that some people have stated that they are willing to pay more if they think that they are getting cleaner air. 

 

Haagenson said he does not think the residents of Fairbanks would be agreeable to paying more.  Wright said we would have just as clean power with the full retrofit, and no increase in rates. 

 

Lamal said GVEA’s annual meeting is April 23rd in Fairbanks.

 

Executive Director of AIDEA, Bob Poe spoke next.  He said AIDEA owns the HCCP plant.  He said he would like to thank our Federal delegation.  He said $117 million federal dollars went into this plant.

Poe said the delegation, AIDEA, and GVEA would like to se this plant run.  He said when they started the process to get the 125 million dollar loan that arrangement was made back in June 2001.  Poe said when Mike Kelly put the deal together, he wanted to get the loan and get a permit adjustment to allow for the retrofit.  Kelly also wanted a coal sales and power sales agreements as well. 

 

Poe reminded the Assembly that AIDEA is a for profit state corporation.  He said when they make a profit half of that profit goes back to the State of Alaska.  He said since 1996 they have paid back $126 million to the State.  Poe said, to date, the HCCP cost $297 million ($117 million of Department of Energy, $29 million in State grant money, and $128 million in AIDEA money) He said the 128 million in AIDEA funds includes77 million in outstanding bonds.  He said that plant costs them 9 million a year to just sit there. He said that equates to 4.5 million less they are able to give back to the State.  Poe said AIDEA has been willing to go along with the loan approach partially because GVEA is the only viable purchaser. 

 

Poe said during the 90-day test the plant met all the emission goals that were established for it.  He said he thinks that GVEA fears the development risk as a co-op.  He said he thinks GVEA is also concerned about the cost as the technological bugs are being worked out.  He said it was a pretty acrimonious working environment.  He said the plant ran a lot better on 40% waste coal than it did on 50% waste coal.  Poe said when the plant was tested and failed because it did not pass the test criteria, everybody began to sue each other.  He said then that all stopped and everyone said “let’s try to find the path home”.  Poe said that created two paths: one was a full retrofit and the other was a limited retrofit.  He said the limited retrofit would fine tune issues that are known, like the exhaust fans.  Poe said Duke Engineering concluded that those two paths could work.  He said without a power sales agreement they couldn’t get where they want to be.  Poe said they met with Senator Murkowski and he understands the issues.  He said at this point they have one supplemental bill in congress.  He said it is AIDEA’s job to find a way to make this thing work and move forward.  Poe said every year that they wait it costs them $9 million more.  He said AIDEA appreciates all the efforts of the federal delegation.  He said they are actively looking at options.

 

RECESS                   MUELLER called for a break at 4:10 p.m.

 

RECONVIENED       MUELLER called the meeting back to order at 4:25 p.m.

 

CASWELL asked what the cost of power was during the 90-day test.  POE said AIDEA believes the plant can run at 4.7 cents basic cost.  He said uninterruptible power coming from Chugach Electric right now is about 4.7 cents.

 

Haagenson said he thinks the Chugach number will eventually slide down to 2.5 to 3.5 cents. 

 

Healy resident Monte Burbank said the consensus is that the cost of gas will be increasing but the cost of coal will be staying the same. 

 

Haagenson said GVEA is aware that there might be a gas line to Fairbanks ten years from now.  He said it takes about three people to run a 60-megawatt turbine.  He said GVEA understands the economics of this issue, and they know how to make things flow. 

 

Poe said he agrees with what Haagensen said, as Haagenson is speaking from a Utility Manager’s point of view.  He said there is $297 million in public money to date into this project.  He said the engineering firm believes it can work, and so does Usibelli.  He said AIDEA is also about jobs and helping the economy.  Poe said it’s nice that Haagenson is able to sort of pretend it doesn’t exist when it comes to all these economic options, and Poe said he understands that that’s Haagenson’s job.  Poe said we have to make the project work! 

 

Healy resident Tim O’Neill asked how much was AIDEA involved in the operation of the HCCP outside of the ninety-day test period.  He asked why it was only operating at 50% during that time. 

 

Poe said they were working out the bugs.  He said a coal pulverizer got a spark and it blew up.  He said if someone were standing near that explosion they would not be with us today.  Poe said it is true that the fan belts did erode because of the coal.

 

Healy resident Scott Killian asked if that erosion occurred because of the type of coal that was used.  Poe said yes, the coal had a lot of rocks in it.  He said another reason is the coal is actually moved through the fan, and when the coal has pulverized rock in it it’s more erosive, and that wears down the blades. 

 

Killian said from what he understands they did not have the correct blend of coal, so they had to blend the coal with sandstone, and sandstone is silica. 

 

Poe said one way to fix that might be to make it so the fans can be slipped in and out on a regular maintenance basis.  He said another area of concern is how the coal mix gets to the plant.  Poe said he thinks we should try and make the plant work.

 

O’ Neill asked how the problems of HCCP compare to the start up of any new plant. 

 

Discussion followed.

 

Healy resident Wayne LaChapelle asked if unit two is for sale on the open market.

 

Poe said it is not for sale.  He said the AIDEA Board had a long executive session regarding this issue on Thursday, and one of the things they discussed was a full range of options. 

 

Healy resident Jay Carter said he had heard this plant can produce up to 68 megawatts.  Poe said he has not heard 68, but he has heard greater than 50.  He said the plant is rated at 50 megawatts.

 

Haagenson said the generator itself is rated at 63 megawatts, and that includes a ten-megawatt auxiliary load. 

 

Keith said if at some point GVEA does not acquire the money they’re after, then will the plant be dismantled and sold off in pieces.  Poe said they are looking at the time value of money.  He said chopping it up and selling it would only give them 3 to 4 million positive cash flow.  He said using tax-exempt bonds finances this plant.   He said if the plant disposes of waste coal, then it qualifies for those types of bonds.   

 

Usibelli Coal Mine President Joe Usibelli Jr. said they mine coal, that’s what they do!  He said for him to tell GVEA how to operate their plant or tell AIDEA how to operate their plant isn’t really his place.  He said they have invested several million dollars into this project, and they have a say in it because they are the supplier of the coal for the plant.  He said everything you have heard today is actually very simple.  Usibelli said GVEA wants safe, affordable and reliable power.  He said all the technical issues can be cured.  He said it’s the cost of operating the plan versus the reliability, and who’s going to pay for it. 

 

Usibelli said Mr. Poe wants to be paid back for his debt service. He said his company wants to sell coal, and the cost of operating the plant has to cover the purchase of the coal.  He said a coal supply agreement could be decided if they knew when the plant would begin to operate.  Usibelli said a lot of what you are hearing is posturing.  He said he is negotiating with GVEA to sell coal, and they want the cheapest price for coal, and they want the cheapest price for power for their customers.  Usibelli said he wants the highest price for the coal, and Mr. Poe wants to be paid back on his debt service.  He said there are a lot of undertones going on because they are all negotiating with each other as they’re speaking.  Usibelli said as a coal miner he looks at things pretty simply.  He said he thinks the technical problems can be solved.  He said the question is to what degree to solve those problems.  Usibelli said he thinks it will run someday, and if it doesn’t, then that’s a tragedy.

 

CASWELL asked if the three parties involved would commit to getting together in the near future to discuss this issue, without a large audience.  Lamal said they see a lot of each other already. 

 

Rick Martin said the plant needs to run, and it seems to him that it’s just a matter of cost, and he wants to know where that money is going to come from.  He said the money would need to come from somewhere to complete a full retrofit or a minimal retrofit.

 

Poe said he does not think that anyone is dragging their feet on this issue.  He said he has never felt for one minute that GVEA isn’t working hard on a solution.  Poe said he thinks the bigger issue is what’s the solution.  He said if the only solution was to rip the guts out and replace it then that is what needs to happen.  He said he thinks you could do a limited retrofit and get the plant to run well.  Poe said the long term commercial reliability issue is true. He said all the partners in this journey knew going in that this was a new technology.  

 

MICHAELS asked if AIDEA was willing to provide the money for the full retrofit, and if a partial retrofit were decided upon, then where would the money for that come from.

 

Poe said the cost of a full retrofit is astronomical!  As stated previously, AIDEA is a for profit entity.  He said they couldn’t lend money at 2%.  He said they get paid through a user fee system, and they get the cost of capital over profit, like at the Red Dog Mine.  Poe said if they did a limited retrofit, then he thinks the AIDEA board would be willing to provide some of the capital.  He said another idea would be to do it in stages.  Poe said he thinks the AIDEA Board would be willing to do reasonable things that get us to that limited retrofit.  He said with a full retrofit GVEA would have to pay a much larger amount of cost, and with a limited retrofit AIDEA would pay a larger amount. 

 

O’Neill asked if GVEA was not willing to go with a limited retrofit.  Haagenson said he would like to work toward a long-term plan.

 

Discussion followed.  Jay Carter said there are people here who would like to work a limited time than not work at all!

 

Healy resident Dennis Needham asked how many jobs would be created.  Lamal said they have maintained a work force in unit one that is higher than what their ultimate goal was.  She said the reason for this is because they had scaled up the work force during the test period for HCCP.  Lamal said they have a very well trained work force.  

 

Colin Keith said if AIDEA is losing 9 milllion a year, then why not use those funds to begin the limited retrofit. 

 

Healy resident Ron Clark said he has been a resident of Healy for 30 years.  He asked if the Intertie is really needed if unit two is not running. 

 

Haagenson said the existing one needs to be rebuilt.  Wright said the line to Healy is as old as unit one.

 

Minimal discussion followed, and MUELLER thanked all those in attendance.

                                   

RECESS                   MUELLER called for a recess at 5:00 p.m.

 

RECONVENE           MUELLER called the meeting back to order at 5:15 p.m.

 

PLANNING                1.)  A resolution in support of the Department of Transportation

COMMISSION           and Public Facilities (DOT&PF) Project No. 61279.  (This project constructs a highway bridge over the railroad crossing near milepost 204 Parks Highway.)

 

                                    MUELLER entertained a MOTION to adopt.  SHIELDS so moved and HALL seconded. 

 

                                    The roll call VOTE was unanimous.  This will be Resolution PC 02-02.

 

                                    2.) A request from Owner, Don Shannon, to re-plat and vacate utility easements.  Case File No.02-003.  Location:  Lots 30, 31, and 32, Block 3 Tri-Valley Subdivision, within Section 18, Township 12S, Range 7W, Fairbanks Meridian, Healy, Alaska.

                                   

                                    Owner Representative Tim Venechuk said he had obtained letters from those involved, like GVEA, etc.

 

                                    HALL MOVED to approve and SHIELDS seconded.

 

                                    MICHAELS stated that we should wait until the Alaska Railroad and Usibelli Coal Mine submit a letter of non-objection before we give final approval.

 

                                    Land Technician Gail Pieknik said that those two entities have to sign the final plat before it can be recorded. 

 

                                    The VOTE was unanimous.

                                   

MINUTES                   1.)  March 10, 2002:  Work Session, Public Hearing, and Regular Meeting.

 

                                    MICHAELS MOVED to adopt, and SHIELDS seconded.  The VOTE was unanimous.

 

                                    2.) February 22, 2002: Canvass meeting.

 

                                    HALL moved to adopt, MICHAELS seconded.  The VOTE was unanimous.

 

FINANCIAL                MICHAELS MOVED to receive the February 2002 financial

REPORT                    report, and HALL seconded.  The VOTE was unanimous.

 

MAYOR’S                  The Mayor chose not to submit a report at this time. 

REPORT                   

 

ASSEMBLY               MICHAELS stated that he would not be at the May meeting as he

COMMENTS             will be out of the state, and asked to be excused.

 

COMMITTEE             Mayor Gonzales recommended Nancy Hollis for Finance

SEAT APPT.             Committee Seat D.  HALL MOVED to confirm the Mayor’s recommendation, and SHIELDS seconded.  The VOTE was unanimous.

 

PUBLIC                      There were no comments.

COMMENTS

 

COMMUNICATION   1.)  National Park Service Planner, Mike Tranel, regarding the

AND                            Backcountry Plan and Regional Trails Planning.

APPEARANCES     

Mike Tranel gave then Assembly a brief overview of the updated plan.  He said some of the main issues are access for planes and snowmachines in the Park.  He said the plan he is talking about does not affect the Northern Access issue.  He said there has been a rapid increase in the amount of airplanes landing on glaciers in the Park.  Another big issue is how snowmachiners near Cantwell will be able to get to the Park boundary off of the Parks Highway.  He said they would like to coordinate with the Borough regarding where the snowmachine trails will go once they leave the Park, near Cantwell. He said if we are providing for snowmachining access in the park then they have the ability to provide for trail planning and if you look at the map most of the area affected is in the Denali Borough.  He suggested that the Borough be involved in the trail planning process.  He said the NPS is looking to assist and facilitate where trails go, but not to dictate. He said it is important to make sure what happens inside the park is compatible to what happens outside of the park. 

 

CASWELL stated that you are national park not an international park as stated in the handout.  Tranel said Denali has been recognized as an international destination, and that falls in line with Alaska being a different and special place.  

 

2.) Golden Valley Electric Association Representative regarding an up date on the Healy Clean Coal Project and the Northern Intertie. 

 

This issue was handled earlier in the meeting.

 

                                    3.) Appearance request from Mr. John Winklmann, regarding the

Denali Borough voter pamphlet.

 

Healy resident John Winklmann said two months ago he submitted a complaint regarding the hand out that was sent out to the potential voters by the Assembly.  He said he is resubmitting his complaint that was addressed during last month’s Assembly meeting because he feels some of his questions was not answered.  He said he feels the Assembly sent out and handed out misinformation to potential voters.  He said let there be no mistake!  The Assembly disseminated misinformation to the voters of the borough.  He stated that he is not saying that the Assembly did that on purpose, but he feels that the Assembly did send that misinformation out.  He stated that the letter of response that he got back seemed to gloss that all over and to make it a real small time problem.  He stated that if you read the minutes everything that he said was backed up by comments by many of you folks.  He stated that if you read the minutes from last month’s meeting, Mr. Mueller brought it to the table and Mr. Michaels and Ms. Hall both said that this should be discussed.  He said and then someone moved and another seconded to send a response that was already written.  He stated that there was no discussion.  He questioned that there was never a meeting or if anybody had even looked at that written response, except Mr. Mueller.  He stated that the answer did not address the points that he made.  He stated that first the pamphlet was five (5) pages long and the Borough propositions got four and a half (4˝) page and the at-large sponsored proposition only got four (4) paragraphs.  He felt that that was anything but nonpartisan, and if it were non-partisan, they would have have both received two and a half (2˝) pages.  He stated that in a paragraph in that pamphlet it stated that “at the request of the School Board …”, and he feels that was inaccurate information.  He stated that it implies that the School Board came to the Assembly and everybody sitting here knows that that the Assembly went to the School Board, and forced that issue on them. 

 

Winklmann said the issue is whether the Assembly wants to be honest or not.  He stated that he is not saying that anybody did that on purpose or not, but that is what happened.  Winklmann stated his next issue is the maps.  He said the map that became a part of Ordinance 01-12 was not the same map as was sent to he voters in the pamphlet.  He said the map in the pamphlet was not accurate, and asked why that was sent out.  He said the pamphlet says, “For a more detailed map contact the Borough Office”, and he asked why this map that went with the ordinance was not a par of the pamphlet.  Winklmann said he would like it very much if they made a little committee and took 10 minutes to discuss this issue.  He said he would like it if, when the committee is put together, that they put an honest member of the community on the committee. 

 

Winklmann said he thinks this is also an ethical problem, as the Assembly should be held responsible for their actions.  He stated that when someone comes to the Assembly and complains, then there needs to be some method to take care of it.  He stated that when you take a minute and write a note as a response to a complaint, and then the Assembly votes on that note, that is unethical.

 

ORDINANCES          1.)  Ordinance 01-07, Version A, an ordinance amending the Denali Borough Code of Ordinances, adding Chapter 22, pertaining to business licenses.

 

MICHAELS MOVED to postpone TALERICO seconded. The VOTE was unanimous.

 

2.) Ordinance 02-01, Version A, an ordinance amending the Denali Borough Enabling Code, Title 1, Chapter 4, Public Records.

 

CASWELL MOVED to send this to the Borough Attorney, and  HALL seconded. 

 

USIBELLI MOVED to send the “Employee Handbook” to the attorney also.  POLLOCK seconded.

 

The VOTE on the amendment was 5-3 with CASWELL, MUELLER, and MICHAELS opposed.  The amendment passed. 

 

CASWELL asked how thick the “Employee Handbook” is.  The Clerk clarified that it is called the “Office policy”.

 

The VOTE on the main MOTION was 7-1 with TALERICO opposed.

 

3.) An ordinance of the Denali Borough Assembly amending the fiscal year 2002 budget.

 

MICHAELS MOVED to introduce, and HALL seconded. 

 

Mayor Gonzales stated that there was an error under “Assembly Expenses, Municipal Land Management”.  He stated that the amount should be $6,000 not $66,000.

 

The roll call VOTE to introduce was unanimous.

 

HALL MOVED to postpone CASWELL seconded.  The VOTE was unanimous.

 

4.)  An ordinance of the Denali Borough Assembly pertaining to the fiscal year 2003 budget.

 

MICHAELS MOVED to introduce, and HALL seconded.

 

USIBELLI asked if the fire departments in the Borough need to use current census numbers.  She stated that it looks like they are still using old numbers.

 

The roll call VOTE was unanimous.

 

USIBELLI repeated her question. 

 

Mayor Gonzales said the numbers come from the Fire Departments and they are using census numbers.

 

USIBELLI stated that she had asked the Fire Chief, Rusty Lasell, if Anderson could be serving that many people and he did not think so.  She asked if these are numbers possibly outside of the borough.  She stated that they do not reflect the census numbers.  

 

Discussion followed and the Clerk said the City of Anderson is going to resubmit their number, as they are completing their own census. 

 

The Chair entertained a MOTION to postpone. HALL so moved and SHIELDS seconded.

 

Mayor Gonzales stated that the school asked for $1,220,256, and during the next meeting he will be asking the Assembly to take $35,000 from the Assembly Budgetary Reserve line item and out that into the Major school Maintenance Reserve Fund.

 

Denali Borough School District Superintendent Chris Hagar stated that he would like to be able to go to the school board tomorrow night and recommend to the School Board that they hire the nontenured staff.  He stated that the only way that he can do that is if the Assembly lets him know that they are in support of their proposed budget.  MUELLER reminded everyone that this was just an introduction of this ordinance.

 

CASWELL asked that Usibelli Coal Mine be contacted to obtain a better figure for projected Severance Tax revenues.

 

HALL raised a point of order regarding the time constraint.  HALL MOVED to suspend the rule to set the time for adjournment no later then 7:00 p.m. CASWELL seconded.  The vote was 7-1, with POLLOCK opposed.

 

The VOTE on the main motion was unanimous.

 

5.)  An ordinance pertaining to the Borough Six Year Capitol Improvement Projects.

 

HALL MOVED to introduce, and SHIELDS seconded.  The roll call VOTE was unanimous.

 

The Chair entertained a MOTION to postpone until the next meeting.  TALERICO so MOVED and MICHAELS seconded. The VOTE was unanimous.

 

RESOLUTIONS        1.)  A resolution determining the total amount to be made available from the Denali Borough sources for school purposes in accordance Chapter 30, Section 9, Denali Borough Code of Ordinances.

                                   

                                    CASWELL MOVED to adopt and MICHAELS seconded. 

 

                                    The roll call VOTE was unanimous.

 

                                    Nancy Russell, School Board member, stated that she appreciates the Mayors comments.  She stated that in the past there has been some concerns that the major school maintenance projects are funded properly.  She stated that she looks forward to discussing it in the May joint work session.

 

                                    2.) A resolution of the Denali Borough pertaining to Safe Communities funding.

                                   

                                    HALL MOVED to adopt SHIELDS seconded.  The roll call VOTE was unanimous.

                                   

                                    3.)  A resolution of the Denali Borough Assembly pertaining to the Department of Transportation and Public Facilities (DOT&PF) highway bridge over the railroad crossing near Cantwell.

                                   

                                    This was addressed earlier in the meeting.

                                   

OTHER                       1.)  Formal written complaint from Mr. David Braun dated March BUSINESS              10, 2002.

 

HALL MOVED to send the draft letter, and MICHAELS seconded.

 

USIBELLI MOVED to have the Personnel Committee review the complaints.  She asked the Presiding Officer for direction.  MUELLER said Code establishes the formation of investigative committees and the Personnel Committee is not that committee.  The MOTION failed for lack of a second.

 

MICHAELS raised a point of order, and said the Code of Ordinances calls for the formation of a standing committee by ordinance and a special committee by resolution. 

 

USIBELLI stated that she would like to see both John Winklmann's and David Braun's complaints handled by a committee.  Discussion followed, and HALL suggested that USIBELLI bring a resolution to the next meeting for the formation of a special committee.   USIBELLI asked to take a recess and write that resolution.  MUELLER said that would have to go on the next agenda.

 

The maker and second of the motion withdrew the main motion.

 

USIBELLI MOVED to postpone sending the letter until the next meeting, at which time there could be a resolution that forms an investigative committee.  TALERICO seconded.  The VOTE was unanimous.

 

2.) Discussion regarding ethics of Assembly members.

 

MUELLER said this issue is on the Personnel Committee agenda.

 

USIBELLI asked how to bring the complaint form to the next meeting.  MUELLER said she could bring a resolution or an ordinance to the next meeting.  MICHEALS suggested that she bring forth an ordinance that includes the form and changes the section of the Code that would put that form into use.

 

Discussion began and MICHAELS said there are sample forms in the Code that could be used to address the formal complaint form issue.  

 

3.) Public comment. 

 

David Braun stated that six members of the Assembly, the Mayor and three women of the staff witnessed an incident before the Assembly meeting last month between him and Mr. Payne initiated by Mr. Payne.  He stated that it has come to his attention that someone on the 10th that witnessed this started a rumor that he was “throwing chairs” around.  He stated that he would appreciate it that no such slander be put out against him.  He stated that it is the second time that one of his public servants has slandered him.  He stated that he does not appreciate it.

 

ASSEMBLY              There were no comments.

COMMENTS            

 

NEXT MEETING       The next Assembly meeting will be held on May 19, 2002 at McKinley Village Community Center.

 

ADJOURNMENT      MUELLER declared the regular meeting adjourned at 6:18 pm.

 

 

ATTEST:  _________________________          APPROVED:  __________________

 

 

Date Approved:  ____________________