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ASSEMBLY MEETING MINUTES
MAY 2, 2005

  1. Call to Order: The regular Assembly Meeting of May 2, 2005 was called to order by Mayor Michael S. Swain, Sr. at 7:30 p.m. The meeting was held in the Assembly Chambers of the Borough Building, Naknek, Alaska.

  2. Roll Call: Present: Shelby Boothe, Eddie Clark, and Carvel Zimin, Jr. Absent: Mel Coghill, Jr. and Russell Phelps.

    Also present: Mayor Michael S. Swain, Sr., Borough Clerk Betty Bonin, Borough Manager Fred Pike, Finance Director Ellen Skiles and a large audience.

  3. Approval of Agenda: CARVEL ZIMIN, JR. MOVED TO APPROVE THE AGENDA AND IT WAS SECONDED BY SHELBY BOOTHE. Mayor Swain stated under Appearance Requests Item A we have Larry Scott and the Basketball Team. Do you want to add that item to New Business now or suspend the rules later if you want to add it? The Assembly agreed to move it to New Business, Item H and also add Item E-Bid Surplus List. MOTION PASSED UNANIMOUSLY ON AMENDED AGENDA.

  4. Approval of April 4, 2005 Regular Assembly Meeting Minutes and April 21, 2005 Special Assembly Meeting, Board of Equalization Minutes: SHELBY BOOTHE MADE A MOTION TO APPROVE THE MINUTES OF APRIL 4, 2005 AND APRIL 21, 2005 AS SUBMITTED. CARVEL ZIMIN, JR. SECONDED THE MOTION AND IT PASSED UNANIMOUSLY.

  5. Appearance Requests:

    1. Larry Scott and Basketball Team RE: Landfill Clean Up: Zack Klien and Dustin Wilson represented the Basketball Team and thanked the Assembly for this opportunity tonight. They would like to attend Basketball Camp July 24-28 and would like to clean the landfill for a contribution. Carvel Zimin, Jr. asked how much they needed for this trip. The needed $7600 for airfare for 10 kids.

      Eddie Clark asked if they would clean Naknek and South Naknek landfills? Shelby Boothe stated in the past they cleaned both sides.

      Zack Klien stated they plan to raise money by having bake sales and car washes, etc. Mayor Swain asked if this was taken to the School Board? Zack Klien stated the School Board has not discussed it.

      REGULAR ASSEMBLY MEETING MINUTES
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      MAY 2, 2005

      Carvel Zimin, Jr. complimented the Basketball team on their past season. Zack Klien and Dustin Wilson thanked the Assembly.

    2. Trefon Angasan, Jr. - Information Update on Northern Dynasty: Trefon Angasan was present. He stated he is working for Northern Dynasty to reach out to the communities. He's into informing the political groups, villages, and Native Corporations. They have upgraded the Pebble Mine estimating 41 million ounces of gold, 1-1/2 million of molybdenum and 27 million pounds of copper northwest of Iliamna. Though this summer they will have spent 67 million dollars on gathering information. This summer they will focus on soil and plants. They plan to build a road from Williamsport to the mine location.

      There is a lot of concern in the Iliamna area mainly in Pedro Bay. The concerns are with dust, noise and traffic for the next 55 years. Northern Dynasty has gone back to the drawing board and came up with burying a slurry pipe to transfer extracted materials to Cook Inlet for transport.

      Mr. Angasan stated he has been traveling around the communities since they have received a number of resolutions opposing the mine. He is asking the Borough to write a letter of support for the process they are undertaking such as data gathering information, and the science they are going through. They project another 1-1/2 to 2 years before they starting thinking about the permit process. They are looking for letters of support since it is getting more and more difficult to raise capital they need to move forward on the mining process. Northern Dynasty is a small American corporation that is owned by a company out of Canada. They will be looking at the power supply situation and water quality studies. They plan to use a floation process where the product will be ground down in two phases. One is the initial breakdown to baseball size material, they will then grind it to a level of course a sand. From that point, it would run through a trough and the minerals will be extracted from the inner rock using floatation method and organic compounds. There is a question what constitutes that particular re-agenting at this point, but they are refining what works best to extract the minerals from the concentrate. If there is some volatility in the tailings itself, it would come from the rock pirate in the deposit. They plan to separate that from the regular mine waste and put it in a different compound storage bin, probably down in bedrock between mountains where there is no water supply that could flow into it. Water keeps the pirate neutral and acid won't form. Even if there was water, that would be something that would slow down the breakdown.

      Northern Dynasty will revisit villages again with updates later when they find out more information. They are not asking anyone to support the mine, just the process. It's ludicrous to even suggest that. We don't want to do anything that is going to impact the salmon, wildlife, berries or anything.

      Carvel Zimin, Jr. thanked Trefon Angasan, Jr. for coming out. He feels better hearing it explained by someone he knows. Technology has gotten better over the years. He wouldn't support it unless he know it wouldn't harm our fish and environment.

      REGULAR ASSEMBLY MEETING MINUTES
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      MAY 2, 2005

      Trefon Angasan, Jr. stated that Northern Dynasty is working on a plan so there is no damage to salmon. He has an interest in the salmon also since he owns a boat and permit and fishes here.

      Trefon Angasan, Jr. stated Northern Dynasty will spend 1-1/2 billion dollars before they start work. This summer they will spend $35 million dollars. They plan to hire locally and with that, it will require a lot of training on mining. May 15th they will host a conference in Anchorage and looking at ways to get benefits to local villages. They are looking at 7 years down the line before they do any mining. There are 35 environmental groups gathering information.

      Eddie Clark asked if he can get on Trefon's email list keep informed. Trefon stated his Email address was: trefonangasan@gci.net

      Trefon Angasan, Jr. thanked the Assembly. Manager Fred Pike will draft a letter and bring it to the Assembly Meeting on June 6th.

  6. Communications:

    1. Letter to Alaska Congressional Delegation from Mayor Michael S. Swain, Sr. RE: Support of Onshore Oil and Gas Exploration

    2. Letter from Leslie Simmons, Solid Waste Program Coordinator to Fred Pike RE: Class II Landfill Permit No. 9625-BA010

    3. Letter to Timothy Verrett from Fred Pike RE: Waiver to work on Right-of-Way Easement for Lake/Rapids Camp Road - Shelby Boothe asked what the easements were? Fred Pike stated they were 60 & 100 feet and the re-alignment was 60 feet. Shelby Boothe asked Fred Pike if he can have a map for the next meeting showing the 60 foot easement areas. Fred Pike stated he can do that.

    4. Letter to Ellen Skiles from Fred Pike RE: Thank you for tenure with the Bristol Bay Borough

    5. Letter to Mike Chenault and Kevin Meyer from Fred Pike RE: ADFG RY 2005 Operating Budget - Conference Committee

    6. Letter to Mike Barton, Commission, Department of Transportation & Public Facilities from Mayor Michael S. Swain, Sr., RE: King Salmon Air Traffic Control Tower Operations Funding

    7. Letter to Jeff Currier from Mayor Michael S. Swain, Sr. RE: Support of Docks and Barge Landing Facilities to the Villages of Lake & Peninsula Borough

      8. REGULAR ASSEMBLY MEETING MINUTES
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      MAY 2, 2005

    8. Letter to Fred Pike from McKie Campbell, Commissioner, Department of Fish & Game RE: Economic & Biological Impacts of the 2004 General District Fishery in Bristol Bay

  7. Old Business:

    1. Ordinance No. 2005-05 - Chapter 3, Section 3.16.010, 3.16.040, Sales Tax on Raw Fish, Sections 3.20.020, 3.20.070, Transient Occupancy Tax, Third Reading and Final Public Hearing: Mayor Swain stated this was the third and final Public Hearing on Ordinance No. 2004-05 and opened it for public comments. Hearing no comments, Mayor Swain closed the public hearing. CARVEL ZIMIN, JR. MOVED TO ADOPT ORDINANCE NO. 2005-05 AND IT WAS SECONDED BY SHELBY BOOTHE. MOTION PASSED UNANIMOUSLY.

    2. Ordinance No. 2005-06 - An Ordinance of the Bristol Bay Borough Providing for the Establishment of the Budget for the Fiscal Year 2006, Third Reading and Final Public Hearing: Mayor Swain stated this was the third reading and final public hearing on FY06's budget and opened it for public comments. There were no comments so the public hearing was closed. CARVEL ZIMIN, JR. MOVED TO ADOPT ORDINANCE NO. 2005-06 AND IT WAS SECONDED BY EDDIE CLARK.

      Shelby Boothe stated we were 1.2 million in the "red" and a few things needed to be eliminated. The beginning balance will be $2,044,722 for the general fund. This does not include the land sales or Port Trusts.

      Mayor Swain stated previous motions by the Assembly was to return funds to land sales and port trust funds. This budget is 6% higher than last year's budget.

      SHEBLY BOOTHE MADE A MOTION TO AMEND THE BUDGET ON PAGE 41 BY REDUCING 6001 FROM $93,295 TO $53,040 ELIMINATING 1/2 TIME PW DIRECTOR/PORT ADMINISTRATOR. CARVEL ZIMIN, JR. SECONDED THE MOTION. The Dock will operate now as it did last summer. MOTION PASSED UNANIMOUSLY.

      SHELBY BOOTHE MADE A MOTION TO AMEND PAGE 41 BY REDUCING 6002 FROM $11,031 TO $9078 ELIMINATING THE HEALTH INSURANCE FOR THE PW DIRECTOR/PORT ADMINISTRATOR. CARVEL ZIMIN, JR. SECONDED THE MOTION AND IT PASSED UNANIMOUSLY.

      Page 50: SHELBY BOOTHE MADE A MOTION TO REDUCE EQUIPMENT CAPITOL OUTLAY 6201 FROM $5000 TO $2000 A REDUCTION OF $3000. CARVEL ZIMIN, JR. SECONDED THE MOTION AND IT PASSED UNANIMOUSLY.

      Page 64: Salaries and Wages - 600l: SHELBY BOOTHE MADE A MOTION TO DECREASE BY $43,583 AND 6002: DECREASE BY $2303 FOR SALARY AND HEALTH INSURANCE ON HALF TIME PORT ADMINISTRATOR. CARVEL ZIMIN, JR. SECONDED THE MOTION AND IT PASSED UNANIMOUSLY.

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      MAY 2, 2005

      Ellen Skiles stated for clarification, while all these will make the Port in better shape, It will have no impact on the general fund whatsoever. Shelby Boothe stated he understood that unless we need that revenue in some point and time.

      Page 64, under 6020: SHELBY BOOTHE MADE A MOTION TO REDUCE $75,000 TO $50,000 FOR DOCK MAINTENANCE. CARVEL ZIMIN, JR. SECONDED THE MOTION FOR THE SAKE OF DISCUSSION. It was felt that money made be needed for repairs since the dock was getting close to being 25 years old. Maintenance is also needed for the South Naknek Dock. VOTING ON THE MOTION, SHELBY BOOTHE-NAY; EDDIE CLARK-NAY AND CARVEL ZIMIN, JR.-NAY. MOTION FAILED UNANIMOUSLY.

      Page 66, under 6025: SHELBY BOOTHE MADE A MOTION TO DECREASE $15,000 TO $10,000. CARVEL ZIMIN, JR. SECONDED THE MOTION. Shelby Boothe stated the Dock has never spent $15,000 since the Dock does not reimburse Public Works. MOTION ON AMENDMENT PASSED UNANIMOUSLY.

      Page 66, under 6201: SHELBY BOOTHE MADE A MOTION TO DECREASE $230,000 TO $30,000. CARVEL ZIMIN, JR. SECONDED THE MOTION. The Assembly agreed it would be nice to have a LCL Building but we can't afford it this year. MOTION ON AMENDMENT PASSED UNANIMOUSLY.

      Page 66, under 690l: SHELBY BOOTHE MADE A MOTION TO DECREASE $6000 TO $1000. CARVEL ZIMIN, JR. SECONDED THE MOTION. Shelby Boothe stated this was for garbage pickup. The dock has a new truck and we can move it ourselves with the summer employees we have. This will eliminate contractual services. Fred Pike stated it can be done with garbage put into totes which load and offload easily. MOTION PASSED ON AMENDMENT UNANIMOUSLY.

      Page 68, under 6006-Overtime: SHELBY BOOTHE MADE A MOTION TO DECREASE OVERTIME FROM $35,000 TO $25,000. CARVEL ZIMIN, JR. SECONDED THE MOTION. Shelby Boothe felt there should not be as much overtime with 4 operators working. Fred Pike stated he was not comfortable cutting back since we are doing twice as much herring as last year. He just received a tentative schedules and they are working 24/7 with 2 people scheduled 6 days a week. VOTING ON AMENDMENT MOTION: SHELBY BOOTHE-AYE; EDDIE CLARK-AYE; CARVEL ZIMIN, JR.- NAY. MOTION FAILED DUE TO A LACK OF THREE (3) AFFIRMATIVE VOTES.

      Shelby Boothe stated he received correspondence from the School District on the Budget. He assumes everyone is happy with the school budget. There was a light discussion. The Manager recommended $573,418 but at the workshops the Assembly recommended $600,308.

      Richard Hebhardt stated the School Board adopted their budget last Thursday night. It is $63,000 under the cap.

      REGULAR ASSEMBLY MEETING MINUTES
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      MAY 2, 2005

      There was a more discussion about workshops, school budget, insurance costs, eliminating health insurance costs for elected officials and new enrollees, and BOE adjustments.

      Fred Pike stated in the April 25th Assembly Memo the new figures for group insurance Increases have been given by Premera Blue Cross and an additional $14,002 must be budgeted or the budget for a reduction in benefits. There was a light discussion about Insurance, new membership, and deductibles.

      The Assembly decided to take a break while Finance Director Ellen Skiles "plugged" the insurance costs into each department within the Ordinance. She will also put in the correct numbers on the amendments that were made tonight so the budget will have final numbers.

      Fred Pike pointed out the BOE adjustments would also have to be changed. The changes would be: Personal Property: $685,625 (from $686,905, a reduction of $1280) and on Real Property: $1,100,009 (from $1,174,842, a reduction of $74,833). A total property tax revenue reduction of $76,113 making the total tax revenue amount $1,785,634. Ellen Skiles will incorporate that into the correct budget ordinance.

      Assembly took a ten minute break while Ellen Skiles went to correct the ordinance.

      After the break, Mayor Swain read off the totals: "On Page 1, the revenue is down to $4,656,054 and expenditures are down to $4,656,054 from the general fund. The other changes that were made reflecting the operational costs for the Clinic, expenditures were increased to $1,059,625 to $l,060,589; the second change deals with the Port Enterprise Fund with expenditures changing from $698,346 to $643,460; Under Solid Waste Revenue, under expenditures for operation the change will be from $220,473 to $22l,083; under Waste Water Special Reserve fund: The change would be Under expenditure operation from $286,802 to $287,579. Those corrections are to change the health insurance without increasing the deductible and the forecast revenue."

      SHELBY BOOTHE MADE A MOTION TO AMEND THE BUDGET WITH THE NUMBERS MAYOR SWAIN JUST READ OFF. CARVEL ZIMIN, JR. SECONDED THE MOTION. Carvel Zimin, Jr. asked what type of charges are we talking about? Are we talking about what was said for each department or something else? Mayor Swain stated the numbers that he just read off reflected the cost of the health insurance by each department. MOTION PASSED UNANIMOUSLY ON ABOVE AMENDMENT.

      Mayor Swain stated we have once again, the budget as amended. Carvel Zimin, Jr. asked the Manager what he thought of the new budget. Manager Fred Pike stated it is workable and the correct FY year is 2006. MOTION PASSED UNANIMOUSLY ON THE BUDGET AS AMENDED.

    3. Resolution No. 2005-06 - Resolution Establishing the Bristol Bay Borough Property Tax Mill Rate for the 2005 Tax Year: CARVEL ZIMIN, JR. MOVED TO APPROVE RESOLUTION NO. 2005-06 AT 13 MILLS. THAT WOULD BE 4.37 MILLS FOR SCHOOL PURPOSES AND 8.63 MILLS FOR GENERAL SERVICES.

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      MAY 2, 2005

      SHELBY BOOTHE SECONDED THE MOTION AND IT PASSED UANIMOUSLY.

    4. Comments on Policy & Procedure Manual: Manager Fred Pike stated we're going to have a work session with employees and bring the policy back to the Assembly at the June Meeting.

  8. New Business:

    1. Resolution No. 2005-04 - Resolution of Supporting Onshore Oil and Gas Exploration in the Bristol Bay Region: CARVEL ZIMIN, JR. MOVED TO ADOPT RESOLUTION NO. 2005-04 AND SEND IT TO THE APPROPRATE PEOPLE. SHELBY BOOTHE SECONDED THE MOTION AND IT PASSED UNANIMOUSLY.

    2. Resolution No. 2005-08 - Resolution Amending the Bristol Bay Borough PERS Plan to Allow for the Exclusion of Seasonal Employees: Fred Pike stated this was previously passed but needed a couple minor changes for acceptance with PERS. CARVEL ZIMIN, JR. MOVED TO ADOPT RESOLUTION NO. 2005-08 AND IT WAS SECONDED BY SHELBY BOOTHE. MOTION PASSED UNANIMOUSLY.

    3. Resolution No. 2005-l0 - Support continued Current Level Monitoring of the Remediation at King Salmon Air Force Station, Alaska: EDDIE CLARK MOVED TO APPROVE RESOLUTION NO. 2005-10. MOTION WAS SECONDED BY SHELBY BOOTHE AND IT PASSED UNANIMOUSLY.

    4. Alcoholic Beverage Control Board - King Salmon Lodge LLC; LIQUOR LICENSE APPLICATION: CARVEL ZIMIN, JR. MOVED FOR NON-OBJECTION OF THIS LICENSE. EDDIE CLARK SECONDED THE MOTION. Daelyne Ford was present representing King Salmon Lodge. She stated not having a liquor license will impact their Lodge. They have paid substantial amount of taxes this past year for the previous owner. They have also remodeled their facility and has an investment in this community. This license will only service clients at their lodge.

      Mayor Swain stated he wanted to treat everyone fairly. The Assembly turned down Rapids Camp Lodge's request for a liquor license in the past.

      Carvel Zimin, Jr. remembered some of the discussion from that request and recalled there was concern about clients drinking and driving from Rapids Camp Lodge to King Salmon on poor road conditions. He is comfortable with this request but if they become delinquent with taxes or transient occupancy taxes, we'll have to look at this issue again.

      There was a lot of discussion about liquor licenses and how these have been treated in the past.

      SHELBY BOOTE MADE A MOTION TO EXTEND THE MEETING TO 11:30 P.M. TO GET THROUGH THE AGENDA. CARVEL ZIMIN, JR. SECONDED THE MOTION AND IT PASSED UNANIMOUSLY.

      REGULAR ASSEMBLY MEETING MINUTES
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      MAY 2, 2005

      CARVEL ZIMIN, JR. MADE A MOTION TO POSTPONE KING SALMON LODGE'S LIQUOR LICENSE UNTIL JUNE 6, 2005 ASSEMBLY MEETING. EDDIE CLARK SECONDED THE MOTION AND IT PASSED UNANIMOUSLY.

    5. Surplus Items: Manager Fred Pike had a surplus list which listed 2 Jeeps at the Landfill and the old Ice Machine at the Dock. SHELBY BOOTHE MOVED TO PUT THE JEEPS ON THE SURPLUS LIST BUT WANTED TO MAKE SURE THE ICE MACHINE WORKED WELL THROUGH THIS SEASON. CARVEL ZIMIN, JR. SECONDED THE MOTION AND IT PASSED UNANIMOUSLY.

    6. Request for Waiver of Penalties and Interest - Dragnet Fisheries and T.C. Enterprises: Manager Fred Pike stated Cherrier called him and they are having financial difficulties. They wanted to see if the Assembly would waive Penalties and Interest on their tax bill. Penalties and Interest charges are spelled out in the Borough Code and we can't start doing this or everyone will be requesting waivers. CARVEL ZIMIN, JR. MADE A MOTION TO DENY DRAGNET FISHERIES REQUEST. SHELBY BOOTHE SECONDED THE MOTION AND IT PASSED UNANIMOUSLY.

      T.C. Enterprises: Manager Fred Pike stated this company had 2 addresses; one address was receiving the assessment and the bills were going to someone else. Again, this was against Borough Code, it is up to the taxpayer to provide the Borough with a correct address. SHELBY BOOTHE MADE A MOTION TO DENY T.C. ENTERPRISES REQUEST FOR WAIVER OF PENALTIES AND INTEREST. CARVEL ZIMIN, JR. SECONDED THE MOTION AND IT PASSED UNANIMOUSLY.

    7. Property Appeal of Tax Lot No. 17-109-728 Lot 4 Rainbow Subdivision, Allen Vezey: Mayor Swain stated this request was inappropriate since the BOE made the final decision. If Mr. Vezey wanted to take it to the higher courts, he was more than welcome to do so.

    8. Basketball Team RE: Landfill Clean Up: CARVEL ZIMIN, JR. MADE A MOTION TO DONATE $3800 TO THE BASKETBALL TEAM FOR BASKETBALL CAMP EXPENSES. SHELBY BOOTHE SECONDED THE MOTION AND HOPES THEY DO A THOROUGH JOB ON BOTH LANDFILLS. Shelby Boothe also suggested that Middle School Basketball assist them since we gave them funds previously. MOTION PASSED UNANIMOUSLY.

  9. Reports:

    1. Mayor: None

    2. Manager - Written in Packet

    3. Finance Director: Ellen Skiles stated the grant reports are done; audit is held up since she has to go back 15 years; telemedicine is up and working at the clinic.

    4. Police Department - Written in Packet

      5. REGULAR ASSEMBLY MEETING MINUTES
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      MAY 2, 2005

    5. Fire Chief/EMS Coordinator - Written in Packet

    6. Lobbyist - Written in Packet

    7. Pool - Written in Packet

    8. Library - Written in Packet

    9. Public Works Department - Written in Packet

    10. Port Department - Written in Packet

    11. Planning & Zoning - March 8, 2005 Minutes

    12. Health Commission - None

    13. Lake Camp Road April 2005 Report - Jim Munter - Written in Packet

  10. Persons to be Heard:

    Larry Scott and Sharon Wilson thanked the Assembly for their contribution to the Basketball Team.

  11. Assembly Member Comments:

    Shelby Boothe inquired about the EMS Radios? Fred Pike stated he signed the purchase order Thursday.

    Eddie Clark - you can tell Billy Hester wrote the Public Works Report with "no drownings".

  12. Check Register - None

  13. Adjournment: By general consensus of the Assembly, the meeting adjourned at 11:21 p.m.
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