Minutes of the Regular Meeting

Denali Borough Assembly

Tri-Valley Community Center

Sugarloaf Room, Healy, Alaska

August 12, 2001

CALL TO Presiding Officer Jerry Mueller called the regular meeting to order at 3:09

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.

MUELLER introduced Karen Morrissey, Director of Real Estate for the Alaska Railroad. Morrissey said she just completed a public hearing, and there are brochures available in the back pertaining to how to lease their lands.

MUELLER introduced Jim Gorski, Denali Borough Attorney. MUELLER stated that he is here to answer any questions the Assembly or the public might have.

Gorski said that over the last few months they have focused on the reapportionment issue. He said that he has previously provided a letter of his recommendation, and the Assembly must make a determination today if they are apportioned correctly. He said the Assembly has a 60 day window that runs out next week. The Statutes say that Home Rule Boroughs are exempt from some sections of Title 29 if the borough charter addresses the issue, but he feels the Denali Borough Charter is a little on the thin side regarding this issue.

MICHAELS asked that if we decide that we are malapportioned, then what is the time line.

Gorski said that Title 29, section .080 says the Borough has six months and if they do not meet that deadline, then the commissioner will make the decision for you.

MICHAELS said that if it does apply to us and we do not make a decision the commissioner can force the issue. MICHAELS asked then we have to accept it. Gorski said that we can go to court and fight it.

AGENDA MICHAELS said that sometime today we need to make a decision. He stated that a resolution is needed. He said that the Denali Borough may be malapportioned.

MUELLER said that it is a complex issue. He suggested sending it to a committee.

USIBELLI said that she was on the DCED teleconference, and the Department of Community and Economic Development is working on our data to locate where the people are located within the Borough.

STOWELL said that we do not have a resolution and that we have denied resolutions before for not making the 12 day agenda cut-off.

MUELLER said the resolution will be item J.) 2., under Resolutions.

STOWELL stated that we might need to suspend the rules since this resolution is not on the agenda.

The Mayor said that we need to decide if we are or are not malapportioned.

MICHAELS said that we need to also address what we need to do after that decision is made.

MUELLER said under other business we need to add K2.) Malapportioned issue.

PAYNE MOVED to approve the agenda as amended, and SHIELDS seconded. The VOTE was unanimous.

PLANNING 1.) Request to further subdivide Lot four, containing 7.558 acres into two

COMMISSION individual parcels, Lot 4A to have 6.558 acres, Lot 4B to have one acre. Owner/Applicant: John Steven Tolley. Owner Representative: Ralph Mathews, PLS. Case File: 01-004SUB.

USIBELLI stated that she has the power of attorney to speak for John Steven Tolley. MUELLER asked her to step down from the Assembly to represent him.

USIBELLI stated that at this time Tolley is not interested in selling this property to any person. He said he was wondering how this even came before the Assembly when he did not put this forth.

Gail Pieknik, Land Use Technician, said that Tolley said he did not know what he was signing when he signed the application. She said when the application came into the office she started questioning whether it was his signature.

The Chair entertained a MOTION to deny the application at the owners request. HALL so MOVED and PAYNE seconded. The VOTE was unanimous.

2.) Request to vacate a 25' wide by 363.30' in length Public Access Easement. Case File: 01-004SUB.

Pieknik stated that this is part of Tolley application.

MICHAELS MOVED to deny at the owners request, HALL seconded. The VOTE was unanimous.

3.) Request to revisit Denali Borough case #00-003 in order in order to vacate a 60' wide trail easement prior to final plat recording. Owner/Applicant: Jeff Forsythe. Owner/Representative: Tim Venechuk, PLS.

Pieknik said that this was previously brought to the planning commission for preliminary approval. She said prior to recording it, the owner would like to vacate this easement. She stated that Venechuck has contacted the State and we have received a letter that states this is not an RS 2477 trail and that they have no problem with it. She said the request meets the checklist.

PAYNE MOVED to approve, and HALL seconded. The VOTE was unanimous.

4.) Request to vacate a 60' wide trail easement located within tract B, ASLS 87-237 along Hilltop Road, Healy. Case File #00-006.

Pieknik said that Mr. Zarcone would like to vacate an easement. He is not asking to vacate the 25' section line, only the dark section on the plat. She said that Venechuck has contacted the State and they do not have a problem with vacating it.

CASWELL MOVED to approve and HALL seconded. The VOTE was unanimous.

MINUTES 1.) July 8, 2001: work session, public hearing, and regular meeting.

STOWELL MOVED to approve , HALL second. The VOTE was unanimous.

REPORTS 1.) Financial Report

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

2.) Mayor’s report.

See work session minutes.

3.) School District Superintendent’s Report

Chris Hagar stated that they have hired new teachers and they still have an opening at the Anderson School. He stated that John Bailey and his sons did an excellent job at repainting the Anderson School.

Hagar said that the soccer field is finished and kids are using it now. He said that they will be working on getting the baseball field fixed.

MICHAELS asked what is happening with the upgrade. Hagar said that the budget has just been approved by the Department. MICHAELS asked if everything goes as plan, when will construction start. Hagar said in 2 years.

4.) Ad Hoc Committee Report

The Mayor explained that the Ad Hoc committee held their final meeting.

David Talerico, Ad Hoc Chairman, said that the committee requests that the Assembly send a letter of thanks to the Commissioner, also to Tim Woster, Dan Sterley and Staff, Al Brooks and Dave Hanson. He said that it looks like the project will start in 2002. He said that some of the pedestrian projects could start as early as next year. He said that he also wanted to thank the borough staff, especially Amanda for all their hard work.

MUELLER thanked the Ad Hoc Committee for all of their hard work.

MICHAELS MOVED to send thank you letters to the above listed names, HALL seconded. The VOTE was unanimous.

OTHER 1.) Appointment of Land Use Planning Committee Seat “A”

BUSINESS

The Mayor explained that Seat A on the Land Use Planning Committee was vacant. He said that this seat is usually filled by someone from the Anderson/Clear area. The Mayor put forth the name of Albert C. Reams.

MICHAELS MOVED to confirm, STOWELL seconded. The VOTE was unanimous.

2.) Cantwell Transfer Station equipment.

The Mayor proposed that the Borough sell the loader that currently resides at the Cantwell Transfer Station, and purchase a smaller one. He said that it cost nearly $2000 in wages for somebody to plow. He said that we will save money in 6-8 years without the cost of wages and repairs. Mayor Gonzales said he is requesting that the Assembly approve his request to sell the loader and purchase a newer, smaller model.

STOWELL asked what loader we have down there. CASWELL said that it is a John Deere 644. STOWELL asked what the Mayor is proposing to replace it with. Pieknik said the Administration wants to replace it with a mini loader. STOWELL suggested getting a large bobcat.

PAYNE asked if we had looked at either selling it right out or trading it. The Mayor said if we sell it we can get more money for it.

The Chair entertained a MOTION to approve the Mayor’s request, PAYNE so MOVED and SHIELDS seconded.

STOWELL stated that they need to do a lot of research.

The Mayor stated that the Borough Clerk, Land Use Clerk and he had been researching this.

USIBELLI asked if there was a private individual that could be contracted to plow. The Mayor said that person would have to be on call to possibly work two hours a day, and most people do not want to do that.

The Mayor said that the gate keeper at the Transfer Station could run the smaller loader and then we would not need to hire someone to plow.

Discussion followed and CASWELL asked if this motion allows the Mayor to finalize the deal. MUELLER, the maker of the motion, concurred. STOWELL said it is unclear to him if the motion allows the Mayor to proceed with the investigation or the purchase of the new equipment.

USIBELLI MOVED to amend the motion to have the bottom line of what we’re looking at budget wise come before the Assembly at the next meeting. STOWELL seconded. The VOTE was unanimous. MUELLER declared this issue postponed until the next meeting.

ASSEMBLY There were no comments.

COMMENTS

PUBLIC Will Forsberg, Healy resident, stated that the Assembly needs to act on

COMMENTS this resolution. He said the borough is not apportioned correctly and urged them to study the census. He questioned why the City of Anderson’s door to door population count was 200 higher than the census count. He said the resolution should state that we are malapportioned and suggested moving the district lines to conform with the school district lines.

John Miner, Healy resident, suggested that they do the least that the State requires.

Charlie Loeb, Healy resident, said that he wanted to back up what Forsberg said. He said the Assembly must review the Borough’s population as a whole, not just reconsider the City of Anderson population.

Lynn Boelsma, Healy resident, spoke against the excursion tax, and said it is not fair and equitable tax. She asked why the people of Healy are not willing to take some of the responsibility for their children’s education. She asked how come the only tax that would pass would be one that doesn’t effect anyone in Cantwell, Healy or Anderson. She stated that there has not been a population increase, yet our tax base has gone from $500,000 to $1,300,000. She also asked who would administer this money. She stated that we need better Fire/EMS services, beautification projects, and promotional money. She proposed to cap all tourist taxes to 10%. She stated they would like some time to come up with their own business district or service area. Boelsma asked when the capital projects are funded where will the money go. She stated that there are business owners that are so upset that they have started the steps to secede from the Borough.

Boelsma also read a letter from Denali Grizzly Bear Campground Owner, Scott Riesland, Reisland stated in his letter that he understand the need for funding for capitol improvements for the Denali Borough School system. The letter stated that the following be considered (1) The excursion tax would provide an additional work load and burden on tourist industry providers. (2) The tourist industries receive very little from the overnight accommodations tax. What benefits would they realize from an additional excursion tax? (3) The Denali Borough currently does little to promote tourism in the Denali area. (4) If an excursion tax is passed, it is important for the Denali Borough to compensate the tourist industry for the time spent, and accounting burden collecting these taxes.

Sean Peterson, Healy resident, stated that he owns a photo shop and he sells photo gear, film, batteries, etc. He suggested changing it to the wording in the ordinance to commercial photographs. He said that this tax has a long way to go. He asked if Wally’s and Mountain View are going to be taxed. He reiterated that we have a long way to go.

Jim Raisis, Denali resident, asked why we need the money, as adults we need to be responsible for the things we want in life. He said they already put in a lot of long hours and how are they suppose to have the time to collect and account for this tax.

John Nierenberg, Healy resident, stated that he loves living in a state with no tax. He suggested changing the name of this tax to a tourist tax. He said at a certain point we need to find some way to pay for the public schools, as it is everybody’s responsibility.

R.D. Russo, seasonal resident, stated that he agrees with Lynn Boelsma, and the revenues generated from the taxes never seems to be enough. He said he is willing to split the borough in two and the southern area be their own borough.

Bill Bailey, Healy resident, asked if you had the definition of excursion. It doesn’t say were the money is going to go. Those ballots should stipulate where the money is going with your office. He stated that fire departments can’t keep up with the money needed to keep up the equipment.

Steve Jones, Denali resident, stated that the Assembly should be cautioned about killing the goose that lay the golden egg, as it could start to effect the businesses. He said if you hit tourism too hard, then the tourists will quit coming.

RECESS MUELLER called a recess at 4:21 p.m.

RECONVENED MUELLER called the meeting back to order at 4:34 p.m.

COMMUNICATION 1.) Mayor’s Revenue Development Task Force presentation regarding the

AND proposed tax ordinance.

APPEARANCES

Eddie Mercer, Task Force Member, thanked the Borough Assembly. She stated that the task force was created when the Assembly thought that there wasn’t going to be enough money for the school capitol projects. The committee felt that it was imperative to have a facilitator. Jerry Mueller was chosen. She thanked the Mayor and Clerk for their commitment and time. She stated that when they started looking into this they found that fire departments, libraries, etc. were historically under funded.

Eileen Armstrong, Task Force Chairman, stated that the task force was formed about a year and a half ago. She stated that the task force had recently put out a news letter explaining the need for this tax. She stated the borough has three main powers: tax, teach, and plan. When the task force got together and looked at all the needs for the borough capitol improvement projects they found that the need is there for the schools and other entities. Armstrong said when the Princess Lodge partially burned down the cost to replace it was in the newspapers, and the State realized that the Borough’s full value determination amount was seriously under what it should be. That number is used to calculate how much the Borough is required to fund the schools. She said the Tri Valley School Upgrade Project local match went from 7% to 30%. She stated that instead of $700,000, the Borough had to come up with $1.7 million, and that tapped everything the Borough had.

Armstrong said as proposed, this tax would generate approximately $900,000. She said if there was any money left over after the capital projects are funded, that money will be funneled back into the community.

Boelsma asked if the tax base encompasses the entire Borough. Armstrong state that it does.

Russo asked who served on the committee. Eileen explained past and present committee members. Russo asked if the Canyon area was included as a community. It was explained that Dave Talerico, Shar Berg, and Larry Gill had been on the committee.

Neirenberg asked if they looked at a property tax. Eileen stated that they did, but they wanted to put something on the ballot that had a good chance of passing.

Boelsma asked what the capitol projects are.

ORDINANCES 1.) Ordinance 96-22, version G, Providing for subdivision planning and platting within the Denali Borough.

HALL MOVED to adopt, MICHAELS seconded.

PAYNE said that there was one typo that needed to be addressed.

STOWELL MOVED to delete “the land” on page 10, item 6A, and PAYNE seconded. The VOTE was unanimous.

The roll call VOTE was unanimous.

2.) Ordinance 01-05, Version D, an ordinance amending Ordinance 96-04 regarding the initial zoning of the Borough.

CASWELL MOVED to adopt, PAYNE seconded.

STOWELL MOVED to change section 4, 1.) To state “resident registered voters.”

John Miner, Healy resident, said that you have to be a resident of the Borough to be a registered voter.

MICHAELS said that it pretty much covers everything.

The motion failed for lack of a second.

The roll call VOTE to adopt was unanimous.

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

STOWELL MOVED to postpone and direct the Mayor to add in the ordinance existing uses, and CASWELL seconded. The VOTE was 8-1 with MICHAELS opposed.

4.) Ordinance 01-07, Version A, an ordinance adding Chapter 22, pertaining to Business Licenses to the Denali Borough Code of Ordinances.

MICHAELS moved to postpone until the December meeting, STOWELL seconded. The VOTE was unanimous.

5.) An ordinance confirming that the Denali Borough is and will continue to exercise solid waste powers. (Next ordinance 01-08)

PAYNE MOVED to introduce, and CASWELL seconded.

MICHAELS asked if this was deleting words in the Charter and if the effective date needs to go to a vote of the people.

The Mayor said that it does not need to go to the vote of the people.

MICHAELS said that it needs to be looked into to make sure that it follows the law.

STOWELL said that it doesn’t say what we are doing.

The Mayor said the ordinance says the Borough is and will continue to exercise solid waste powers.

The roll call VOTE was 8-1 with STOWELL opposed. This will be Ordinance 01-08.

The Chair entertained a MOTION to postpone, HALL so MOVED, and SHIELDS seconded. The VOTE was unanimous.

6.) An ordinance amending Article II, section 2.02 of the Denali Borough Charter. (Introduced by Gerald Pollock)

POLLOCK MOVED to introduce, and USIBELLI seconded.

POLLOCK said that he looked at the census numbers and at the districts, and he is suggesting to move the lines, and make it more equitable. He said this ordinance will make it so people can vote in the same district that their kids go to school in, and in their fire district.

MICHAELS said this ordinance makes it so 6 of 9 members are in one district, and that majority could rule the Assembly and override a veto of the Mayor. He suggested postponing this ordinance until the Assembly decides what the next step should be.

CASWELL said that he might not agree with what POLLOCK proposed but he wants to see were the people are on a map. CASWELL suggested that the Mayor research the data and come up with a detailed map.

USIBELLI said that we have been discussing this since May, and now we are under the gun. She said that we could have had this taken care of months ago. She said she had asked the Mayor to contact someone from DCED and have them attend this meeting. She said she brought this up at the last meeting, and she did not know if the Mayor had contacted DCED or not!.

The Mayor said that when an Assembly member comes into the office and tells him or the administration that they want something done, the Administration will not act on it until directed by the Assembly through the vote process!

USIBELLI said that the every other clerk’s office in the United States did this research for their Assembly. She suggested having a round table discussion to hash this out. She said the girls should have researched this already.

Mayor Gonzales said that unless you folks tell us with at least a vote of five then we have not been directed to do that.

HALL says that she disagrees with Healy having 6 votes.

STOWELL spoke in favor of the current system.

PAYNE said this is a touchy situation.

HALL stated that this ordinance needs to be taken a step further.

MUELLER reiterated that we have different options.

STOWELL called the question.

The roll call VOTE was 5-4 with MICHAELS, PAYNE, SHIELDS, and HALL opposed. The motion passed and this will be Ordinance 01-09. .

The Chair entertained a MOTION to postpone, POLLOCK so MOVED, and SHIELDS seconded. The VOTE was unanimous.

7.) An ordinance to amend the Denali Borough Charter, Article II, Section 2.02 and Section 2.03. (Introduced by Teresa Usibelli)

USIBELLI MOVED to introduce, POLLOCK seconded.

CASWELL said that this is another option. He gave them a heads up and said to be prepared to tell Cantwell residents why this would be in their best interest. They would be concerned that the people of Healy don’t know their interests.

MICHAELS said that this should wait until we discuss it under other business. He said that there are a lot of other options.

The roll call VOTE was 3-6 with MICHAELS, MUELLER, HALL, STOWELL, SHIELDS, and PAYNE opposed. The MOTION fails.

8.) An ordinance to amend the Denali Borough Charter, Article VII, Section 8.02, 3. (Introduced by Teresa Usibelli)

USIBELLI stated that she is not going to move to introduce she just wants the Assembly to keep this as an FYI.

USIBELLI MOVED to postpone indefinitely. STOWELL seconded. The VOTE was unanimous.

9.) And ordinance amending the Denali Borough Charter, Article XI, section 11.01, regarding an excursion tax.

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

The roll call VOTE was 6-3 with CASWELL, USIBELLI, and HALL opposed. This will be Ordinance 01-10.

The Chair entertained a MOTION to postpone, PAYNE so MOVED and SHIELDS seconded. The VOTE was unanimous.

RESOLUTIONS 1.) A resolution to support a walking trail from Tri-Valley School to the Tri-Valley Community Center and the Healy Spur Road. (Next resolution 01-10)

USIBELLI MOVED to adopt, HALL seconded.

Discussion followed regarding the cost incurred for this project.

STOWELL asked why there is a project cost in the resolution when earlier in the resolution is states goods and services will all be donated.

USIBELLI said people have told her they would donate their time and products to this project. She said they are still working on formulating the grant application. She said they need local government support to apply for this grant.

USIBELLI said that this will help keep the kids off of the road, and it would start to beautify the Healy core area.

HALL asked if she had a map. USIBELLI said that it is intended to run the boundary of the lot, and the borough assembly is not liable for this trail.

The VOTE was 8-1 with STOWELL opposed. This will be resolution 01-10.

2.) A resolution adopting the determination of the Denali Borough population as of May 2001.

USIBELLI MOVED to adopt, HALL seconded.

USIBELLI MOVED to change the date to “as of June 18", throughout the document. MICHAELS seconded.

PAYNE asked if we know it was a correct census. He said that we need to take a longer look at the numbers before we adopt them.

The VOTE on the amendment was 1-8 with USIBELLI in favor.

The roll call VOTE was 0-9, with all members in opposition.

3.) A resolution declaring that the Denali Borough Assembly Apportionment does not meet the standards of AS 29.20.060.

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

PAYNE asked Gorski, concerning Home Rule Boroughs do we or do we not qualified to be exempt.

Gorski said that you are required to follow the one person one vote. There is an opt out of the next two sections if the borough charter provides for reapportionment of the assembly. He stated that in 60 days you need to make a decision.

PAYNE asked what our options are after this is adopted. Gorski said that there is a whole list of ways to do this.

The Mayor said that is putting the cart before the horse. He said first you need to figure out if you are malapportioned or not.

Gorski said that redistricting plans have all been challenged, so the Assembly has to use the numbers as a base line. He said the assembly will have to come up with funds if they want to do a recount.

PAYNE asked if the resolution adopting Anderson’s population is binding to the Borough. Gorski said that it is not binding.

CASWELL asked if we were bound by the census numbers. Gorski stated that we are until we challenge it.

MICHAELS asked about the five references in Title 29 referred to in this resolution, and Gorski read it.

The VOTE was 8-1 with CASWELL opposed. This will be Resolution 01-11.

PUBLIC There were no comments.

COMMENTS

OTHER 1.) Malapportionment.

BUSINESS

CASWELL MOVED to direct the Mayor get a map and in as much detail as possible, to draw were the population is. STOWELL seconded.

MICHAELS asked how we are going to proceed with this.

The Mayor asked if he has Assembly approval to obtain outside help to complete this project.

CASWELL said his motion allows the Mayor to do whatever is necessary to complete the project.

STOWELL asked what line item these funds will come from. The Mayor said he will have to use the Assembly Budgetary Reserve line item if necessary.

Discussion followed.

USIBELLI stated that DCED has been looking at our numbers, and suggested that a representative from DCED come to the next meeting.

PAYNE said that he agrees with CASWELL, and recognize that the census numbers could be wrong.

Dave Talerico, Healy resident, suggested that the Borough conduct a door to door census.

STOWELL said that he thinks that the census is bogus.

Charlie Loeb, Healy resident, said that the federal government has a procedure that has been hashed out for years, and works for them. He said if the Borough is going to conduct their own recount strict procedures must be in place that are at least as good as the Federal Government’s.

Will Forsberg, Healy resident, stated that he doesn’t see any reason for a recount.

MICHAELS said that he agrees with STOWELL, and some residents may not want to be counted.

Jenasy Jensen, Ferry resident, said that the latest Anderson count, accomplished last November was not done at the same time the census did their numbers. She said when she read the Alaska Statues the Borough must have a plan in place within 60 days, or the commissioner will decide how the Borough should be apportioned.

CASWELL called for the question.

The VOTE was unanimous.

PAYNE said that we need to back off and give them 30 days.

Discussion followed.

Linda Paganelli, Healy resident, asked if the Denali Borough comes up with a plan and the voters vote it down, then what happens next?

Gorski said he did not know. He said the Assembly will have to work this out themselves, and there are several options, such as making the Borough one district and the members are voted “at large”.

Eileen Armstrong, Healy resident, asked what the Assembly had just directed the Mayor to do by voting in the last motion.

CASWELL explained that they want him to go and find where the people are in the Borough, and put that data on a map.

Forsberg stated that by adopting this resolution you are to have a plan on the ballot at the next election. He asked Gorski if our charter is specific.

Gorski answered that we still have to follow State statutes.

Discussion continued, and USIBELLI MOVED to have the Mayor contact Midge Clouse (DCED) to get the data. The motion failed for lack of a second.

ASSEMBLY PAYNE said he does know that the 367 census numbers are wrong and

COMMENTS 558 may not be right because they did not compile the information together. He said there were people that do not use the post office that were not counted. He said these people that come here and complain are part of the problem not part of the solution. He said that we don’t need to support this, it is hog wash. PAYNE said if they do not like the way things are progressing, then they should come to every meeting!

CASWELL said that there is a cap on the amount of funding that the borough can give the district, and that cap has been met. He said the State is trying to shift the monetary burden to the local governments.

CASWELL MOVED to take the park trip on September 5 and to drive in and fly out. MICHAELS seconded. The VOTE was unanimous.

NEXT MEETING The next Assembly meeting will be held in McKinley Village on September 9, 2001 in the community center..

ADJOURNMENT MUELLER declared the Regular meeting adjourned at 6:20 p.m.

Attest: Approved:

Date Approved: