Minutes of the Regular Meeting

Denali Borough Assembly

McKinley Village Community Center

September 9, 2001

CALL TO Presiding Officer Jerry Mueller called the regular meeting to order at 3:47 ORDER p.m.

ROLL CALL Assembly members present were: Sid Michaels, Jerry Mueller, Jim Caswell, Teresa Hall, Carol Shields, Teresa Usibelli, Jim Payne, Scott Stowell, Gerald Pollock and Mayor Gonzales.

AGENDA The Chair entertained a MOTION to approve the Agenda, HALL so MOVED, and PAYNE seconded.

MICHAELS stated that we should put all of the tax ordinances together on the agenda. USIBELLI suggested putting under K2.) Leadership and Civics class from Tri-Valley High School on the agenda. Chris Hagar, Denali Borough School District Superintendent, asked if the redistricting ordinances could be moved to the beginning of the ordinances section of the agenda due to the students needing to leave at 5:00 p.m. The ordinances were renumbered to group the tax and redistricting ordinances together.

The agenda was approved by general consensus.

PLANNING 1.) DOT Park Road upgrade comments.

COMMISSION

Mayor Gonzales stated that this was brought to him about a month ago. He stated that there is about six miles of Park road near Kantishna that needs to be worked on. Jerry Rafson told him about this and that it is a doable project. Mayor Gonzales stated that this will need to go on the Statewide Transportation Improvement Program (STIP). He stated that a resolution will be needed to be adopted in favor of this.

The chair entertained a MOTION for the Mayor to proceed with a resolution in support of this project, STOWELL so MOVED and PAYNE seconded. The VOTE was unanimous.

2.) Request for a utility easement line across borough select land located within section 6, T13S, R7W and Section 31, T12S, R7W, Fairbanks Meridian, north of Healy.

Gail Pieknik, Land Use Technician, stated that Brian Cook is requesting a utility easement located north of the old Healy Roadhouse. Pieknik said that there are two alternatives. She said that alternative 1 goes across Borough select land and alternative two goes down the section line.

STOWELL asked if this would provide power to Borough land. Pieknik stated that it would give us access for power.

MICHAELS asked if you would be able to still build on the land. Pieknik stated that you would not be able to build directly under the lines. MICHAELS asked if it was considered to go from pole #87. Pieknik said these were the only two alternatives brought to her.

Pieknik said that there will be a cost difference in the alternatives. Alternative 1 would cost $16,000 and alternative 2 would cost $14,150.

PAYNE stated from the take off at the parks highway it looks to be no more than 100 ft.

USIBELLI asked if a person built on the joining lot would it share the cost with Mr. Cook. Pieknik stated that there would be a time limit.

PAYNE MOVED to approve alternative 1, HALL seconded.

PAYNE asked if the land is of no value to us. Pieknik stated that the land is swamp and it would be hard to build on.

PAYNE call the question. The VOTE was unanimous.

3.) Request from the State of Alaska, Janet Powers, and Wayne Calkins for a driveway easement located north of June Creek on the Parks Highway.

Pieknik stated that Ms. Powers and Mr. Calkins live south of June Creek. She stated that they are currently parking in the DOT&PF pull off there at June Creek. Pieknik said that they are requesting a driveway.

MICHAELS MOVED to issue a letter of non objection to DOT, and STOWELL seconded. The VOTE was unanimous.

MINUTES 1.) August 12, 2001: work session, public hearing, and regular meeting.

STOWELL read to the clerk a number of grammatical errors to be corrected.

USIBELLI asked the clerk to research the motion made regarding purchase of new equipment for the Cantwell Transfer Station.

MICHAELS MOVED to postpone until the October meeting. CASWELL seconded. The VOTE was unanimous.

REPORTS 1.) Financial Report

The Chair entertained a MOTION to receive the June 2001 financial report. HALL so MOVED and SHIELDS seconded. The VOTE was unanimous.

2.) Mayor’s report.

The Mayor’s report was postponed until the October meeting.

3.) School District Superintendent’s Report

Chris Hagar, Denali Borough School District Superintendent, stated that they are looking for a new business manager. He said that he has recommended Beth Sheen to the School Board to be voted on later this week.

Hagar said that enrollment is down slightly this year, 3 in Anderson and 2.5 in Healy.

Hagar said that they are still looking at better communications in all directions between the School District and the Borough. He said that they have been talking about having a quarterly meeting between the Assembly and the School Board. He said that they are looking at sometime in October.

STOWELL said that he noticed that there was a raise given to some of the employees. STOWELL asked how that could happen without asking the Assembly if they could afford it. He requested that a Borough Assembly member be present during contract negotiations. Hagar said the school district operates from a budget that is approved by the Borough Assembly.

MICHAELS suggest that we have a work session and that the School Board President and Assembly Presiding Officer figure out a date.

USIBELLI said that she noticed on the bottom of his report that this is his last year with the School District and she thanked him for his time in the Denali Borough.

CASWELL stated that since the Borough has been formed Hagar has tried harder than any other superintendent we have had to have better communications with the Borough. CASWELL commended him for it.

ASSEMBLY CASWELL said that the Park Service has offered to come to the Assembly

COMMENTS and give the presentation that was given to them on their trip into the Park. He said that they did not see as much wildlife they were able to in past trips. He stated that on the flight out they were able to fly over the Stampede area. He thanked the Park Service for the trip.

MICHAELS also thanked the Park Service for the trip.

STOWELL encouraged everybody to go see the Borough Clerk to get an application to run for office because you see things in a different light when you are sitting on the Assembly.

RECESS The Chairman called a recess at 4:31 p.m.

RECONVENED The Chairman called the meeting to order at 4:45 p.m.

COMMUNICATION 1.) Representative from the Department of Community and Economic

AND Development regarding reapportionment.

APPEARANCES

Midge Clouse, Local Government Specialist, of Department of Community and Business Development, handed out booklets concerning reapportionment. She stated that it is general information. She said that in Title 29 section .060(a) talks about equal representation. She explained the process of reapportionment and redistricting. She stated that there is a standard of a 10% total variance set by the Department of Justice. She said that the Department of Justice will look to make sure that the minority population is adequately represented.

Clouse stated that within two months after the State’s final reapportionment plan is released, the Assembly has to decide if it is malapportioned or not by resolution. She stated that the Denali Borough had met that deadline.

PAYNE asked if they have adopted the State’s final redistricting plan. Clouse stated that it is the final plan for redistricting.

Clouse said that within 6 months, by February 12, 2002, the Assembly must have a plan and have brought it to the people for a vote. Clouse stated that section .070 in Title 29 states “by the next regular election.” and section .080(e) states within 6 months.

She stated that the commissioner has an obligation to reapportion it for the Assembly if the Assembly does not meet the 6 month deadline. MICHAELS asked what happens if we do come up with a plan and the voters vote it down. Clouse said that the Department would prefer to give the Assembly time to go back to the drawing board and come up with something else. Clouse said that they strongly believe in maximum local control.

Eileen Armstrong, Healy resident, asked what would happen if things went the other way and it gets voted in. Clouse explained that it would go for pre-clearance from the Department of Justice, and 60 days after pre-clearance it goes into effect. Clouse said that if it does not get pre-clearance then it would go back to the drawing board.

STOWELL asked if they can just come in and tell us how we are redistricted. Clouse said that she would recommend that the Department work with you. She said that we do not want to get to that point.

CASWELL asked if after we are redistricted can we go to the Census Bureau and have them draw their lines to match ours.

Linda Paganelli, Healy resident, asked how they access the pre-clearance. Clouse said that they will look at the census numbers. She stated that there is a standard format and you have to justify it.

Jenesy Jensen, Healy resident, asked why there was not a map for the ordinance that has been introduced as there were for the ones that have not been introduced yet. Jensen also asked about voting at large. Clouse said that the Justice Department will look at how minorities would be represented and if they would be able to get elected. PAYNE asked how you challenge the census numbers? Clouse said that it would be very difficult.

2.) Leadership and Civics Class from Tri-Valley High School.

James Miner, Tri-Valley student, introduced the class. He said that they are studying redistricting in school and that they are here to hear about the reapportionment.

ORDINANCES 1.) Ordinance 01-09, Version A, an ordinance amending Article II, section 2.02 of the Denali Borough Charter regarding redistricting.

POLLOCK MOVED to amend the middle district from 6 seats to 5 seats and move that seat to the northern district. MICHAELS seconded.

CASWELL said that he would like to ask POLLOCK to work with the staff to draw up a map on his proposal.

David Braun, Healy resident, said that it puts the variance way out of the 10% allowable.

The VOTE to amend was unanimous.

MICHAELS MOVED to move the line “This ordinance will go into effect as the existing seats become vacant.” in section 3 to the last sentence in section 2 and have section 3 Effective date to read “This ordinance becomes effective upon adoption of the Denali Borough Assembly, signature of the Mayor, and approval by a majority vote at the next regular or special election of the Denali Borough.” STOWELL seconded. The VOTE was unanimous.

POLLOCK MOVED to postpone, and MICHAELS seconded. The VOTE was unanimous.

2.) An ordinance amending Article II, Section 2.02 of the Denali Borough Charter concerning redistricting.

MICHAELS MOVED to introduce, and CASWELL seconded. The roll call VOTE was 6-3 with CASWELL, HALL, SHIELDS, PAYNE, MICHAELS, and MUELLER in favor and USIBELLI, POLLOCK, and STOWELL opposed. This will be ordinance 01-12

PAYNE MOVED to postpone and MICHAELS seconded. The VOTE was unanimous.

3.) An ordinance amending Article II, Section 2.02 of the Denali Borough Charter concerning redistricting.

CASWELL MOVED to introduce and HALL seconded. The roll call VOTE was 6-3 with CASWELL, HALL, SHIELDS, PAYNE, MICHAELS, and MUELLER in favor and USIBELLI, POLLOCK, and STOWELL opposed. This will be ordinance 01-13.

PAYNE MOVED to postpone and MICHAELS seconded. The VOTE was unanimous.

Rusty Lasell, Tri-Valley Volunteer Fire Department Chief, stated that whatever options are out there, the Fire and EMS lines should coincide with the proposal.

James Miner, Tri-Valley student, asked why we can’t keep the districts line the same. MUELLER explained.

MICHAELS said that the school board boundaries do not have to be the same as the Assembly’s. He stated that in the Borough Charter it states that you represent the entire Borough not just your district.

USIBELLI said that the School Board should mirror the Assembly. MICHAELS said that we should keep it the same as the Assembly.

4.) Ordinance 01-06, version E, an ordinance amending Denali Borough Code of Ordinances, Chapter 24, Section 6, concerning management of Borough Real property.

STOWELL MOVED to remove the last sentence of section 6(a) “Easements will not be granted under a special land use permit.” After discussion STOWELL withdrew his motion.

MICHAELS MOVED to postpone, and STOWELL seconded. The VOTE was unanimous.

5.) Ordinance 01-08, Version A, an ordinance confirming that the Denali Borough is and will continue to exercise solid waste powers.

STOWELL MOVED to amend the title to read “the Denali Borough shall continue to exercise solid waste power.” MICHAELS seconded. The VOTE was unanimous.

MICHAELS MOVED to include in the section 3. Effective Date “and approval by a majority vote at the next regular election of the Denali Borough.” STOWELL seconded. The VOTE was unanimous.

MICHAELS MOVED to adopt and CASWELL seconded. The roll call VOTE was unanimous.

6.) Ordinance 01-10, Version A, an ordinance amending the Denali Borough Charter, Article XI, section 11.01, regarding an excursion tax.

STOWELL MOVED to amend by substitution the ordinance on the agenda that he proposed. PAYNE seconded.

CASWELL stated that it seems like it is quite a change. STOWELL stated that it is basically the same with the operations plan.

PAYNE stated that this gives us more to work with.

Mayor Gonzales stated that over a year ago you asked me to form a task force to research this issue. He stated that there is nothing wrong with STOWELL’s ordinance, but the Assembly asked the task force to work on this and they did for over a year. Mayor Gonzales stated that in that year they came to the Assembly and told you what they have found and asked to stay on and take it around to the public. He stated that when they brought it to you in this form you told them that you did not want all of that, you just wanted the ordinance and they went back and did that. He stated that he understands that it needs more explanation. Mayor Gonzales said that amending by substitution would be doing the task force a disservice. He asked how he is suppose to get volunteers when you throw their work out.

STOWELL stated that all he did was take the ordinance and roll it into this operating plan.

MICHAELS said that ordinance 01-10 basically asks the people if they want this or not. MICHAELS stated that STOWELL’s proposal is designed to go in the Code. MICHAELS thinks that it will cloud the issue. He stated that it is getting the cart before the horse. MICHAELS said that later we can figure out what forms we are going to use and that sort of thing. He suggested that the Assembly not substitute this.

STOWELL said that he disagrees. He stated that at the last meeting he heard complaints about vagueness. He thinks that it gives a better foundation for the public.

Lynn Boelsma, Healy resident, said that she does not believe that the ordinances are the same. She said that her business, a taxi service, was left out of 01-10 and is in STOWELL’s substitution.

STOWELL stated that this is just a document to get us started.

USIBELLI asked if any of the other tax ordinances had been introduced.

STOWELL stated that this one is in it’s second reading.

CASWELL called the question.

The roll call VOTE was 4-5 with STOWELL, SHIELDS, PAYNE and MUELLER in favor, and CASWELL, USIBELLI, HALL, POLLOCK, and MICHAELS opposed. The motion failed.

CASWELL said that he wanted to add on to STOWELL’s history lesson from the work session. He stated that in the beginning of the formation of the Borough it was believed that the tour industry can carry everything. CASWELL stated that when we need more money he proposed to increase the bed tax from 4-6% and add a utility tax, that was voted down. He stated that the people wanted minimal government, taxes, etc. and if we wanted more we were going to have to pay for it. CASWELL explained about the capitol improvement projects (CIP). He stated that the CIP for this year is more than the future CIP’s. He thinks that there would be enough money without this tax, but if he is wrong it is because the State keeps increasing the local match. He stated that he is against the introduction of this ordinance. He would support it, however, if we drop it to 2% and make it area wide. He said that everyone here should pay something for their local government and schools.

MICHAELS MOVED to amend to replace the words “Excursion Tax” with “Sales Tax”, and replace Section 2 starting at “There shall be a (3%) excursion tax levied against...” and ending at “A.) Excursion means any of the following:” with “Beginning January 1, 2003, a 3% sales tax shall be levied against the following:”, and Section 2 after “13.) Golf Course.” add 14.) Telephone, 15.) Electric Power, 16.) Heating Oil., and delete “An owner of a business considered an excursion who contracts with a third party...” HALL seconded.

PAYNE said that by adding telephone, electricity, and heating oil you can drop it from 3% to 2%.

USIBELLI asked why MICHAELS did not put anything in there about people selling tickets in Seattle for tours inside the Borough. She also asked MICHAELS why he did not put a sunset clause in the ordinance. MICHAELS stated that in 1998 we lost the right to have our landfill because of a sunset clause. He stated that he thinks that they do not accomplish much.

CASWELL stated that 2% seems to be more than enough.

Lynn Boelsma, Denali Citizen, asked how you enforce the tax to businesses outside of the Denali Borough that still do business in the Denali Borough.

MUELLER said that by we can only tax inside the Denali Borough.

The roll call VOTE on MICHAELS amendment was 7-2 with CASWELL, HALL, POLLOCK, SHIELDS, PAYNE, MICHAELS, and MUELLER in favor and USIBELLI and STOWELL opposed. The motion passes.

CASWELL MOVED to amend the tax amount from 3% to 2%, MICHAELS seconded. The roll call VOTE was unanimous.

MICHAELS MOVED to adopt.

MICHAELS withdrew his motion.

USIBELLI MOVED to add a sunset clause of 2 years, and STOWELL seconded.

MUELLER suggested that we review it in 2 years instead of putting a sunset cause on it.

MICHAELS asked if the current CIP’s will go up. Hagar said that they may be adjusted at a 3% increase each year.

MICHAELS stated that a sunset clause is so final and suggested adding language that the Assembly revisit.

MICHAELS MOVED to amend the amendment to review it every 2 years, and HALL seconded.

CASWELL stated that review could mean rising the tax.

Discussion ensued.

MICHAELS withdrew his motion and HALL withdrew her second.

Steve Jones, McKinley Village resident, said that he is in favor of the sunset clause but suggested making it 4 years. He stated that the Borough should be looking at our land to make money.

Linda Peganelli, Healy resident, said that she is in favor of the sunset clause.

David Talerico, Healy resident, said that he supports the sunset clause.

USIBELLI MOVED to amend the amendment to a sunset cause of 4 years, and HALL seconded.

HALL stated some day the people of this borough might want to have road power, EMS powers, etc. that would cost money and we would have to go through this all over again.

CASWELL stated that he is afraid of the tax going up.

The roll call VOTE on the second amendment was 5-4 with USIBELLI, POLLOCK, STOWELL, SHIELDS, and MUELLER in favor and CASWELL, HALL, PAYNE, and MICHAELS opposed. The motion passes.

The roll call VOTE on the main amendment was 6-3 with USIBELLI, HALL, POLLOCK, STOWELL, SHIELDS, and MUELLER in favor and CASWELL, PAYNE and MICHAELS opposed. The motion passed.

STOWELL MOVED to take this to all four of the communities, PAYNE seconded.

HALL said that there is no hurry, we do not have to put it on the November ballot.

Eileen Armstrong, Task Force Chair, stated that when it was taken to the communities by the Task Force, it did not include the utility tax in the ordinance.

The roll call VOTE was unanimous.

The Chair entertained a MOTION to postpone until the next meeting, STOWELL so MOVED, and PAYNE seconded. The VOTE was unanimous.

RECESS The Chairman called a recess 6:50 p.m.

RECONVENED The Chairman called the meeting back to order at 7:05 p.m.

7.) An ordinance establishing a 2% general sales tax within the Denali Borough.

HALL MOVED to introduce, MICHAELS seconded.

HALL stated that there is two major differences in the two ordinances. She stated that hers doesn’t include utilities and there are a couple exemptions. HALL stated that it is time that the local people start paying for their basic services. She stated that she took the amount of money given to all of the different entities each year by the Borough and she used the number 2000 for the population of the Borough. HALL stated that for her small family of 3 people it cost the Borough about $1,000 for basic services.

STOWELL said that he could support this if locals could pay a flat fee and get a tax exemption card.

MUELLER said that because we are not going put this on the November ballot, we should bring this around to the four communities as well.

CASWELL stated that it should be simply written when it goes to the voters.

Steve Jones said that he likes this ordinance.

The roll call vote to introduce was unanimous.

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

7.) An ordinance adding Title III, Chapter 22A, Titled Excursion Tax to the Denali Borough Code of Ordinances.

STOWELL MOVED to put this on the work session and regular meeting agenda for the October meeting. PAYNE seconded. The VOTE was unanimous.

RESOLUTIONS 1.) A resolution outlining the Denali Borough request for the capitol matching grant program for Fiscal year 2003.

Mayor Gonzales explained there is a match but the recipients have to pay that match. He said that the State requires us to rank the projects.

The Chair entertained a MOTION to adopt, STOWELL so MOVED and PAYNE seconded.

USIBELLI asked if there could be a priority 4. The Mayor explained. USIBELLI said that if we continue to support the Chamber it would be putting money back into the business community.

USIBELLI MOVED to add a priority 4 for the Chamber Building and take $1,667 from the other three priorities and add $5000 to priority 4. POLLOCK seconded.

STOWELL said that the cost of the Chamber building is outrageous!!

The roll call VOTE on the amendment was 2-7, USIBELLI and POLLOCK in favor and CASWELL, HALL, STOWELL, SHIELDS, PAYNE, MICHAELS, and MUELLER opposed. The motion fails.

The roll call VOTE to adopt was unanimous.

OTHER 1.) Update on petition regarding reapportionment.

BUSINESS

The clerk stated that the handout was just an FYI.

MICHAELS asked if the signatures had been secured yet. The clerk stated that they had not been secured.

PAYNE asked the clerk about the issue date and getting it on the November ballot. The clerk stated that the sponsor has been notified that if they would like to have this on the November ballot they would need to get the signature to the office two weeks before September 21, 2001.

2.) Reapportionment issue.

There was no discussion.

PUBLIC Hagar complimented the Assembly on the way they handled the meeting.

COMMENTS

ASSEMBLY PAYNE asked where we are with the land that the school in Cantwell sits

COMMENTS on and AHTNA. MUELLER reminded PAYNE that this is Assembly comment period.

USIBELLI asked if the administration was planning to post the landfill position. MUELLER stated that is a question, not an Assembly comment.

NEXT MEETING The next Assembly meeting will be held at the Cantwell School on October 14, 2001.

ADJOURNMENT MUELLER declared the Regular meeting adjourned at 7:26 p.m.

Attest: Approved:

Date Approved: