You are invited to a Zoom webinar.
When: November 20, 2023 06:00 PM Alaska
Topic: November 20, 2023 Borough Assembly Meeting
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https://petersburgak-gov.zoom.us/j/82124884712?pwd=wIutNeK81mRfG3lT_ntygcJyCI6DbA.eTWJlJp6tJwRwW0J
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Persons wishing to share their views on any item on today's agenda may do so at this time.
Persons with views on subjects not on today's agenda may share those views at this time.
Manager Giesbrecht is taking some personal time off this week so there is no written Manager's Report for this meeting.
If approved in three readings, Ordinance #2023-15 will 1) assign $50,199 of Homeland Security grant revenue accepted by the Assembly on November 6, 2023 to the FY24 budget for School District Radios; 2) authorize additional funds of $86,876 from the E911 fund to cover the cost of an upgrade to the Police Department access control system; 3) increase the budgeted amounts to cover actual costs for purchase of a new pump to replace the leaking leisure pool filtration pump ($10,398) and replacement of two benches at the South Harbor viewing platform that were damaged ($3,629); 4) transfer $880,000 from the Electric Department reserves to the Blind Slough Hydro fund to finish out the project; 5) increase the FY24 budget amount for work on the EMD 16 generator that had been budgeted for in FY23 but not invoiced until now ($5,850); 6) increase the Diesel Plant Maintenance line item to cover unanticipated work on the Caterpillar 398 generator rebuild ($20,981); 7) increase the Motor Pool O&M budget by $20,056 to cover unanticipated repairs on the line trucks; 8) increase the Electric Travel and Training budget by $13,000 to cover online training of staff on the Eaton Yukon AMI program; 9) transfer Wastewater reserves in the amount of $144,000 to the Pump Station 4 project to award a professional services contract for pump station control panels and control programming; and 10) increase the Electric Department payroll budget by $132,366 for FY24 to cover the cost of ratifying the new IBEW Collective Bargaining Agreement.
On August 21, 2023, the Assembly directed Manager Giesbrecht to commence direct negotiations with Wikan Enterprises, Inc. for sale of the property they currently lease from the Borough, with the terms of the negotiations to be brought back before the Assembly for final approval. Because the Borough has not sold leased tideland property in recent years and there is no specific procedure to follow, Manager Giesbrecht consulted with the Borough Attorney, Finance Director Tow and Clerk Thompson to develop a process to follow on this transaction and any future similar transactions.
An appraisal of the property was used to determine the value of the parcel because appraisals are for setting the value on a specific piece of property, while an assessment is used for establishing valuations for groups of properties. The appraisal of the parcel is $100,000. Borough Code Section 16.12.090 provides that the applicant shall pay the actual costs of processing the application and sale. The cost of the appraisal is $4,500. Manager Giesbrecht also requested the present value of the Wikan Enterprises lease (amortized), which has 23 of the 55 years left. The present value of the lease is $49,507.22.
The proposed purchase price offered to Wikan Enterprises by Manager Giesbrecht is $154,107.22.
Wikan Enterprises countered Manager Giesbrecht's offer by proposing to pay the assessed value of the parcel ($75,300) and two more years of lease payments ($8,064) for a total of $83,364.
A copy of the Wikan lease amortization schedule, Wikan Enterprises' counter offer, and the Wikan Enterprises lease document are provided in this packet.
The Assembly is now asked to determine whether to confirm the purchase price of the lease and land as proposed by Manager Giesbrecht or to adjust the total cost of purchasing the lease and land.
If approved, the Assembly will send Governor Dunleavy a letter of support for PMC's request for $37 million from the Governor's FY 2025 Capital Budget for construction of Phase 4 of the new facility project.
In 2024, the Petersburg Borough is entitled to two voting member seats and two alternate seats on the SEAPA Board of Directors. Letters of interest have been received from Bob Lynn and Karl Hagerman for the voting member seats, from Mark Jensen for an alternate member seat, and from Thomas Fine-Walsh for either a voting or alternate member seat.