lake and peninsula borough p.o. box 495 king salmon ...€¦ · submitted by: brian hirsch,...

Chignik Bay • Chignik Lagoon• Chignik Lake• Egegik • Igiugig• Iliamna • Ivanof Bay• Kokhanok• Levelock • Newhalen • Nondalton• Pedro Bay• Perryville• Pilot Point• Pope Vannoy• Port Alsworth• Port Heiden• Ugashik

Lake and Peninsula Borough P.O. Box 495

King Salmon, Alaska 99613

Telephone: (907) 246-3421 Fax: (907) 246-6602

PLEASE POST

REGULAR ASSEMBLY MEETING Tuesday, May 16, 2017 10:00 a.m.*

NOTICE AND AGENDA

Notice is hereby given that the Lake and Peninsula Borough Assembly will hold its regular meeting on Tuesday, May 16, 2017 at 10:00 am in the meeting room of the Lake and Peninsula School District at 101

Jensen Rd, King Salmon AK *note the time is subject to change. The meeting will not begin before the posted time, but it is possible the

meeting may begin after the posted time due to travel, weather and/or scheduling inconsistencies. This is a public meeting and the public is invited and welcome to participate. This meeting may be accessed

by teleconference. The teleconference number is 1-866-339-5580. Enter pass code *2288317*. Any questions, please contact Borough Clerk, Kate Conley at 907-246-3421 or 1-800-764-3421 or

[email protected]. NOTE: Due to telephone service inconsistency, inherent to rural Alaska, the Borough meeting may not always

be available in all locations or audible.

A. CALL TO ORDER

B. ROLL CALL

C. APPROVAL OF AGENDA

D. APPROVAL OF MINUTES 1. April 13, 2017

E. MANAGER’S & STAFF REPORTS

1. Introduction of Guests 2. Manager’s Report 3. Consultant’s Report 4. Community Development Coordinator’s Report 5. Planning Commission Minutes 6. Fisheries Report 7. Finance Report 8. Lobbyist Report 9. Clerk’s Report 10. Superintendent’s Report

Assembly Packet 1 of 134 May 16, 2017

F. CONSENT AGENDA

1. Resolution 17-10 re: Appreciation to City of Chignik 2. Resolution 17-11 re: Appreciation to Dick Sharpe 3. Resolution 17-12 re: Appreciation to Aloys Kopun 4. Resolution 17-13 re: Appreciation to Walt Wrede 5. Resolution 17-14 re: Appreciation to John Levy

G. NEW BUSINESS 1. Ordinance 17-11 re: FY 18 Borough Budget – Hearing & Decision 2. Ordinance 17-12 re: Establishing Operations for Chignik Dock - Introduction 3. Resolution 17-07 re: Revenue Sharing 4. Resolution 17-08 re: LPSD Budget 5. Resolution 17-09 re: Fee Schedule for Chignik Dock 6. BBHA Agreement for Iliamna Housing

H. UNFINISHED BUSINESS

1. Ordinances re: Changes to Title 6. Revenue and Finance

a. Ordinance 17-07 re: Section 6.9 Hotel-Motel Room Tax

I. TIME AND PLACE OF NEXT MEETING

Regular Meeting, August 15, 2017

J. CITIZEN’S COMMENTS

K. ASSEMBLY COMMENTS

L. MAYOR’S COMMENTS

M. ADJOURNMENT

N. INFORMATION

1. Letter from Representative Don Young re: Sea Grant


D. 1. Minutes

April 13, 2017

Lake and Peninsula Borough Regular Assembly Meeting May 16, 2017

Minutes will be available at the August meeting


E. 2. Reports

Managers

Lake and Peninsula Borough Regular Assembly Meeting May 16, 2017 Assembly Packet 5 of 134 May 16, 2017



Telephone: (907) 246-3421 Fax: (907) 246-6602


To: Glen Alsworth, Mayor May, 10 2017 Assembly members From: Nathan Hill, Manager Manager's Report Re: May Report

I am sure the end of April and the beginning of May have been a busy time for all with the summer season right around the corner. The same holds true for staff and I as we prepare to stay engaged as best we can and still take advantage of the hectic summer schedule. I have been working on some familiar topics since the last meeting, keeping in touch with staff, consultants and legal. The main topics discussed have been taxes, Chignik Multi-Community Dock and Kokhanok Wind and other. The tax conversation continues as we refine the proposed approaches to generating more revenue off of the potential hikes in existing taxes or the development of new tax structures. We will have to regroup on the changes in tax language from the last meeting. Other ideas that are being suggested or investigated are a potential hike in fish tax and a potential excise tax. Next week, two days after our meeting, Lamar and I will be accompanying the state on a final inspection of the Chignik Dock. We have hopes that the original plan of being ready for the Tustimena will be in place. Unfortunately the the sailing date continues to be pushed back for the sailing schedule and there is still no definite date that I know of. This topic has made headlines and has been on our radar. There is discussion about a possible trip south with the Kendicott. Other issues being dealt with on the dock are insurance matters, moorage wharfage fees, land use matters and lastly a MOA between the City of Chignik and the Borough on O&M. Kokhanok Wind is moving forward with the combination of residual REF and DERA funding available we anticipate getting to work in the next couple of weeks and have a solid part of the work done by September. There are other items that we are tracking and that I have been involved with of course. Pebble ongoings are being tracked. I am in regular communication with the school district on a variety of matters. I have also been tracking continued transportation difficulties in the southern region to name a few. I would like to add a couple of highlights as well. I was able to participate in the strategic planning session for Kokhanok and I plan on being in Pedro Bay for theirs. I attended a culture week at the school here this week and it was great to see school staff and community working side by side on such hands on curriculum!

E. 3. Reports

Consultant


E. 3. Reports

Consultant•s Cotten


To: Glen Alsworth, Mayor

Assembly members

Nathan Hill, Manager

From: Lamar Cotten

Re: Monthly Report-April 2017

Below is a summary of my work for the months of April.

Chignik Dock Matters. Nathan and I have held a series of meeting with the Chignik Council on city responsibilities of the LPB dock. This include wharfage dock rates. The working group seek to have the rate structure in place for this summer. The city owns six acres behind the dock as well as a partially completed warehouse and its fuel tank facility. LPB is encouraging city officials to develop a master plan for use of its property. Recently, Ak. Marine Lines has request fee rates to place Ocean Beauty container vans on city property. Ocean Beauty is seeking a long term lease as well. Our expectation is that others will also express interest to use the dock and adjacent city property.

I have attended a series of conversations with Chignik on CIP needs as well as final construction matters and future permissible uses of the dock. This is an ongoing conversation about short and long term use of the dock.

Tax/Fee Matters I have attended a series of meeting with Nathan and the LPB legal advisors on the tax/fee matters.


E. 3. Reports

Consultant•s Hirsch


ProgressReport‐RenewableEnergyInitiativesSubmittedto:LakeandPeninsulaBorough

Submittedby:BrianHirsch,DeerstoneConsulting,5May2017RecentActivitiesOngoingsupportforKokhanokwind‐dieselproject,whichincludesdevelopingaRequestforProposalsbasedonfundingprovidedbytheAlaskaEnergyAuthority(AEA)andtheUSEnvironmentalProtectionAgency(EPA).Thefunds($199,611)willbeusedtopurchasearebuiltmarineTier2or3dieselengineandreplaceanexistingdieselengineinKokhanok’spowerplant.Thenewlypurchasedenginewillbemuchcleanerburningandmoreefficient,alongwithprovidingimprovedheatrecoveryforotherdieselfueldisplacement.Aswell,thefundingwillimprovetheautomationandsystemcontrolsinthepowerplant,whichwillassistwithwind‐dieselintegrationoncethewindturbinecontrolsareupdated.Becausethisworkneedstobecompletebyfederalfiscalyearend2017(September30),andthedieselpowerhouseimprovementsarenecessaryforproperlyintegratinganyfuturewindpower,ithasbeendecidedthattheRenewableEnergyFundefforttorevivethewindturbines(describedinpreviousmonthlyreports)willbeputonholduntilthisAEA/EPAdieselenginereplacementiscomplete.OverthenextmonthwewillbeissuingaRequestforProposalsforspecializedengineeringsupporttoprocureandinstallthenewdieselengine.DeerstonewascontactedbytheUgashikVillageCounciltoprovidesupportfortheireffortstoupgradetheircommunitypowersystem.PriortoworkingatDeerstone,approximately12yearsago,IwasinvolvedinhelpingUgashikdesign,purchase,andinstalltheirwind,solaranddieselequipment.TodateDeerstone’sassistancehasbeenlimitedandnobillinghasoccurred,butwehavehadateleconferencewithTribalStaffandfollowupwithUSDepartmentofEnergy–OfficeofIndianEnergy(DOE‐IE)staffwhohavealsobeeninvolvedinprovidingsomelimitedtechnicalassistancerecently.Intheshortterm,itisexpectedthatDeerstone’stime/laborcanbecoveredbyothersourcesoffunding(specifically,SWAMCandBBNAunderaDOE‐IEtechnicalassistancegrant),butdependingonthelevelofsupportrequired,thismaymeritadditionaltimeandeffortthatperhapscouldbecoveredinpartbyL&PB.


E. 3.

Reports Consultant•s

Loeffler


Pebble & EPA settle lawsuits Page 1 of 2

MEMORANDUM May 15, 2017 Phone: 250-4621

E-mail: [email protected]: Lake and Peninsula Borough Assembly

Nathan Hill, Manager

From: Bob Loeffler

Subject: Pebble and EPA Settle Lawsuits

The Settlement. On May 11th, Northern Dynasty Minerals (NDM) and EPA settled a serious of lawsuits. The major terms of the agreement are that EPA won’t use the 404(c) process to veto the project if Pebble applies for mine permits (specifically a wetlands permit) within 2½ years, and completes an EIS within 4 years.

The History. In January 2014, EPA released its final Bristol Bay Watershed Assessment which listed a host of unacceptable impacts that the proposed Pebble Mine would have on the Bristol Bay area. Soon thereafter, EPA began a process under the Clean Water Act, Section 404(c) which would have pre-emptively vetoed the project. In response, Pebble sued EPA three times: • May 2014, NDM charged that EPA’s action violated federal law. This lawsuit was dismissed

on the basis that EPA hadn’t acted yet – it had only proposed to act. If EPA completed the404(c) process and vetoed the project, Pebble could re-start the lawsuit.

• September 2014, NDM charged that EPA was illegally withholding documents that it wasrequired to make public under the Freedom of Information Act. This lawsuit was effectivelyfolded into the next one.

• October 2014, NDM charged that EPA had illegally created an advisory committee of anti-mining groups to help it with the Watershed Assessment. Colluding with groups on one sideof a dispute in this fashion would be illegal under the Federal Advisory Committee Act. InDecember 2014, the court made an initial finding for NDM and against EPA: it issued apreliminary injunction which prohibited EPA from going forward with its work on 404(c).

After the court issued the preliminary injunction – almost 2½ years ago – EPA’s actions against the project stopped. Since then, the parties have been completing depositions, sparring on what information must be released, etc.

Question/Answers: • Q: The settlement obligates Pebble to go into permitting? A: Yes, within 2½ years.

• Q: What happens if Pebble doesn’t go into permitting by that time? A: EPA may goforward with the 404(c)-veto process. Of course, EPA may decide not to resume thatprocess because it determines that a pre-emptive veto is poor policy, or because it decidesthe process isn’t worth the effort, or for any variety of reasons. But if Pebble does notbegin permitting within 2½ year, EPA may resume the veto process.


Pebble & EPA settle lawsuits Page 2 of 2

• The settlement also provides that EPA may restart the process if an EIS isn’t finished

with 4 years from now. But permitting will not start immediately is likely to take more than 4 years. Q: So, doesn’t this mean that EPA can veto the project during the EIS process? A: Theoretically yes, but practically no. The settlement allows EPA to begin a 404(c) process during the EIS. Presumably, Pebble is betting that EPA cannot realistically veto a permit during an EIS. This conclusion is especially strong if Pebble applies for a mine that is different than then one EPA evaluated. If so, the watershed assessment may no longer be relevant as the basis for a veto. The EIS would be a better scientific analysis of impacts; therefore, EPA would await the conclusion of the final EIS.

• Q: Even if Pebble the settlement’s requirements: go into permitting and finish an EIS in

the time required, does EPA give up the right to veto the project. A: No. EPA retains the right to exercise its 404(c) veto at the end of the EIS process, which is when the veto is usually exercised.

What’s Next? Presumably, Pebble announces a mine design and starts the permitting process. But, Pebble must accomplish certain tasks before it can reasonably do so:

• Find a partner. Northern Dynasty Minerals must partner with a larger mining company. NDM lacks the financial strength to complete the permitting process. It must partner with a major mining company before it can realistically start the process.

• New (smaller) design. On numerous occasions, Pebble indicated that it will ask to permit a smaller mine than previous concepts have indicated. The company believes that the smaller mine will decreases the footprint and impacts.

• Change the social dynamic. The anti-Pebble attitudes which pervades Bristol Bay,

Alaska, and the U.S. may make it impossible to permit any project – large or small. Pebble is may try to change the local attitudes about the project. Whether it will be successful, I cannot predict. Pebble may initiate permitting whether or not attitudes change.

Pebble announced that they intend to enter permitting before the end of 2017. I believe they are unlikely to make that date. What’s this about an Advisory Committee? While Pebble has not made an announcement, it appears that Pebble is trying to form an Advisory Committee. I assume that Pebble wishes to empanel a mix of people, supporters and opponents, including people who represent significant viewpoints or groups. I expect that Pebble would be asking for advisory group criticism and advice but participants could still oppose the problem. That is, a participant could say, “While this is a better alternative that avoids some impacts, I still hate the overall project and believe it shouldn’t be built.” This description is my informed conjecture. I assume Pebble will announce the committee once enough people have agreed to participate. If they cannot convince such a group, I assume they will not bother with the committee. That is, an advisory committee that only includes mostly supporters is unlikely to be worth the trouble for them.


E. 4. Reports

CDC




Telephone: (907) 246-3421 Fax: (907) 246-6602


Date: May 10, 2017

To: Mayor and Assembly

From: Kate Conley, Borough Clerk

Re: CDC Report

In the CDC department, we have the following happening:

Municipal Entitlements – On April 24, I met with the Mayor & Bob and reviewed all the priority three selections. We first discussed reasons for choosing land. I have attached Bob’s notes on this meeting. A lot of these selections were chosen years ago when caribou hunting was a significant event and now the property seems unlike to be income-generating. I will be calculating the total land that we want to keep and see if we have finished our selections and present it to the Assembly at the August meeting. I have attached Bob’s memo on that meeting.

Comprehensive Plan – By the time of the Assembly meeting, 15 of our villages will have conducted strategic planning sessions. This has been a real LPB energy recharge for me. What great villages we have, with amazing people and beautiful land. I am so fortunate to work for LPB. Thank you all. Our wrap up meeting will be on Friday May 19th. The plans will be out for village review and I will have completed plans this summer. The next step in this process is incorporating this information into a borough-wide plan and I will have a plan to do that at our August meeting.

Development Permit – The development permit for the GCI tower in Port Alsworth was approved by the planning commission and work was set to begin Monday May 8th.

Subdivision – An old subdivision from 2010 has finally received all the necessary signatures to be recorded and Nathan and I signed it this month. A second one from the same firm is ready for review and signatures. We will be able to do this one as a minor subdivision and unless I find variances, we can do it simply with Nathan and I.


MEMORANDUM April 25, 2017 Phone: 250-4621 E-mail: [email protected] To: Kate Conley, Glen Alsworth From: Bob Loeffler Subject: Notes from 4/24 Municipal Entitlement Meeting This memo provides my notes from yesterday’s meeting on municipal entitlements. For some properties my notes are incomplete, so this memo is designed to augment Kate’s notes. Reasons for Municipal Selection. Bob outlined potential purposes for Municipal Selection:

Community expansion – parcels near communities useful for community purposes. Community facilities – parcels needed for a specific community facility. Recreational lease income – parcels that could be leased for income. These are generally

parcels useful for tourism, hunting, or fishing leases: a lodge for example. Sale income – parcels that could be subdivided and sold. Pre-emptive selection – parcels selected to prevent DNR land management (i.e., if DNR

was going to hold a land sale in an area the Borough wanted to remain in public ownership).

Habitat Protection – to protect the public values (though generally, DNR can accomplish habitat protection quite well). Or

Other – some other purpose. State law does not allow the Borough to change its selections; it can only prioritize the selections it has already made. Because existing Borough selections are not near communities, and the Borough did not select parcels to pre-empt DNR nor for habitat protection, the parcels were evaluated for the potential to generate recreational lease income now or in the future. Parcel Rating. We rated the parcels according to the following scale:

1. Excellent 2. Good 3. Moderate 4. Poor 5. Relinquish

Map 1. Parcels in the center of the map were selected for caribou hunting. They are moderate for that purpose, but since there are no longer caribou, they are not that valuable. (I didn’t catch a rating). Map 2. Section 29. While it’s adjacent to existing Borough selection, not that interesting: rating 4 or 5. Map 3. Barren land, not that pretty. Access for caribou, which aren’t there at present: 4 Map 4. Nice lake. Can use a canoe or small boat on the lake.: Access for back bear or moose hunting: 2


Map 5. The southern parcel on the map is rating 5. The other parcel is good fishing, catch and release potential, therefore 3. Map 6. Boro already has the best land north of the lake. In general the land is flat, no forest, no protection from the wind, and somewhat bleak. Remaining selections: 5 Map 7. Potential for float trip access to the Kotsetna. The selection is so large to for the value involved. Some value, therefore 4. Map 8. Used to have a moose camp there. You must hunt on the non-swampy side: 5. Map 9. Caribou access, but it’s too limited for much use: 5. Map 10. Tail on map not in use: 5. Map 11. 5 Map 12. The map shows the parcels being evaluated in the wrong place. However, when corrected, there is few values there: 5. Map 13. Section 19 – 5; Section 30 – 1 or 2; Section 21 – 5; Section 24 – 1 or 2. Map 14. Section 29/30/31 – 1 or 2; Section 26 – 4 or 5; Section 35/36 – 1 or 2. –– Map 15. Section 19 – 2; remainder – 4. Map 16. Several sections on this map are already in Borough ownership. As to the remainder: Section 7 through 10 – no value; Section 13 – maybe; Section 18 – no; Section 19 – a little value. Section 31 – possible to get to the river from here so rating 3. Remainder – no. Map 17. Good. Map 18. Nothing: 5 Map 19. Parcels that are being evaluated were not marked on the map. However, with respect to the parcels being evaluated, the useful parts were Section 4 and the north half of section 9. These parcels were evaluted not necessarily for leasing income, but for the value to Kokhanok. Map 20. Section 12 – 2; Sections 11/13/14 – 3; Section 25 – 5. Map 21. 5.


E. 5. Reports

PC Minutes


Minutes will be available at the August

meeting


E. 6. Reports

Fisheries


Fishery Advisor Report Lake and Peninsula Borough | May 2017

SalmonForecastRefresher

The2017forecastsockeyeharvestinBristolBayis27.48millionfishwith12.65millionofthosecomingfromtheBoroughwatersofUgashikandEgegik.

12.65millionfromthecombinedharvestofEgegikandUgashikDistrictsis28%abovethetenyearaverageof9.9millionand39%abovethe20yearaverageof9.1million.

ThecombinedharvestinEgegikplusUgashikaverages37‐40%ofthetotalBristolBayharvest.Ifthe2017runcomesinasforecastthatpercentagewouldbe46%.

ForChignikthe2017forecastisforaharvestof1.2millionsockeyewhichis15%belowthelongtermaverageof1.4million.

Ofcoursefishermenarepaidonweightandtheaverageweightpersockeyehasbeenarealwildcardoverthepastseveralyearswithweightscominginsignificantlylowerthanlongtermstableaverages.Ifthisplaysoutagainisanyone’sguess.

Themarketindicatorsaregenerallybullish.TheforecastforFraserRiverisbelowaverage.Russiansockeyemakeup15%oftheirtotalvolumeandisnotexpectedtodampenprices.Inventoriesarevirtuallynon‐existent.Etc.etc.However,thefirstcloudsareappearingonthehorizon.Whetheronelikestoadmititornotthemarketmovementsoffarmedsalmonareagoodindicatorofwildsockeyemarkettrends.QuotingfromanUndercurrentarticleonfarmfishpricetrendsbyNeilRamsdenentitled“Analystsrevisepredictions:salmonspotpricestoease2017,not2018.”

“Fish Pool, and several salmon sector analysts, have revised their forward price estimates to reflect the fact that they expect the peak prices seen at the end of 2016 to come down more rapidly than previously thought. “ The past 12months has been exceptionally strong, with prices 50% above previous all-time high levels driven by the acute shortage of fish and strong demand,” noted seafood analyst Alexander Aukner with DNB. “There was never any doubt the prices would come down from those levels when volumes returned. We expected the price drop to materialize in 2018, but it now seems part of the fall in the spot price will materialize already in 2017.”…. “In a historical perspective we are still at a very attractive level in terms of price, as we find it unlikely volume recovery will be sufficient to drive prices down to levels seen in the past,” added Aukner.

2017BristolBayForecastinmillionsofsockeyesalmonDISTRICT BristolBay Lake&PenBor

Naknek‐Kvichak 8.29Egegik 8.56 8.56Ugahik 4.09 4.09Nushagak 6.06Togiak 0.48Totals 27.48 12.65

0

10,000,000

20,000,000

30,000,000

40,000,000

50,000,000

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

Number Sockeye Harvested in Borough Districts (Egegik plus Ugashik) and All Other Districts

Egegik + Ugashik All Other Bristol Bay


PinkDisasterUpdate–NofisherydisasterfundsinCongress’$1Tspendingbill Chignikwasincludedinthe2016GulfofAlaskapinksalmondisasterdeclarationannouncedbythen‐secretaryofCommercePennyPritzkerinJanuary2017.TheAlaskanpinkfisherydisasterwasoneofninewestcoastfisheriesincludedinthedeclaration.Thefulllistis:

GulfofAlaskapinksalmonfisheries(2016) CaliforniaDungenessandrockcrabfishery(2015‐2016) YurokTribeKlamathRiverChinooksalmonfishery(2016) FraserRiverMakahTribeandLowerElwhaKlallamTribesockeyesalmonfisheries(2014) GraysHarborandWillapaBaynon‐treatycohosalmonfishery(2015) NisquallyIndianTribe,JamestownS'KlallamTribe,PortGambleS'KlallamTribe,andquaxin

IslandTribeSouthPugetSoundsalmonfisheries(2015) QuinaultIndianNationGraysHarborandQueetsRivercohosalmonfishery(2015) QuileuteTribeDungenesscrabfishery(2015‐2016) Oceansalmontrollfishery(2016)

Thedeclarationbythesecretaryofcommerceenablesfisherystakeholders,fishingcommunities,andtheiradvocatestoseekdisasterreliefassistancefromCongress.IfCongressappropriatesfundstoaddressthesefisheryfailures,NOAAthenworkswithTheStateofAlaskaandtheAlaskancongressionaldelegationtodevelopaspendingplantosupportactivitiesthatwouldrestorethefishery,preventasimilarfailure,andassistaffectedcommunities.

However,thefundsareonlygrantedatthediscretionofcongressandcongressdidnotchoosetoincludefundingforthesefisherydisastersinCongress’recentlyapproved$1Tspendingbill.Thiswasthefirstandbestchanceforthefundingtobeapprovedbutcongresscanmakethisfundingavailableatanytimeitchooses.

ChignikCodUpdate InanunprecedenteddevelopmenttheChignikCodfishermenhavebeenunabletocatchtheallowableGHL(guidelineharvestlevel).Thisfisheryfirststartedin1997andafterthefirstfewyearswhenthefisherywasdevelopingandfishermenwerestillfiguringouthowtocatchthefishtherehasbeennotroubleharvestingalltheallowablecatch.Infactinrecentyearstheconcernhasbeenthattoomanyboats,especiallylarge‘outside’boats,canharvestallthefishtooquicklyandoutcompeteourlocalboats–particularlyinpoorweather.Butthisyearwehaveamuchdifferentfishery.Thefishjustarenotthere.Afterthefirstweekoffishingthisoutcomewaspredictedbyourlocalfishermen–ChignikwouldbeunabletoharvestuptotheGHL.

Ofthe7,670,189poundsavailableforharvestbyChignikPotfishermenonly3,105,653poundshavebeenharvestedandtheseasonusuallycloseslongbeforenow.Thisisonly40%oftheGHL.

ChignikisnottheonlyoneandKodiakfishermenhavebeenunabletoreachtheirGHLeither.KodiakcodfishermensplittheirGHL50‐50betweenpotandjigwhereasinChignik90%isallocatedtopot.KodiakpotfishermenhaveaGHLof6,087,452poundsandtheyhaveharvestedonly60%ofthatat3,713,691pounds.Kodiakjigfishermenhaveharvestedonly68,742poundsandChignikjigfishermenhaveharvestedzero.

InterestinglythecodfisheryintheSouthPeninsulaofAreaMhasbeenclosertonormalwithpotfishermenharvestingover98%oftheirGHL.

LocalChignikcodfishermenarenotoptimisticaboutthefutureandbelievethatthenextfewyearswilllikelybepooraswell.


NorthPacificFisheryManagementCouncil‐‐AprilCouncilUpdate SalmonFMP–AreaMcouldlosesalmonfishingareaIn2013,CookInletCommercialfishermenfiledalawsuitchallengingthevalidityoftheCouncil’sSalmonFisheryManagementPlan(FMP).ThelowercourtupheldtheCouncil’sFMPbuttheNinthCircuitoverturnedthelowercourtanddeterminedthatwheresalmonfishingisoccurringinfederalwaterstheCouncilcouldnotsimplyexcludethoseareasfromfederalmanagementandtherebydefermanagementtothestate.TheCourtfoundthatthemanagementofsalmonfishinginfederalwatersmustfullycomplywiththefederalMagnusonStevensAct(MSA).Seethemapsatrightforapictureofwhatareasareaffectedbythiscase.NotethatasubstantialareaintheSouthPeninsulaofAreaMisaffected.ADF&Greportsthatupto20%oftheharvestcancomefromthisarea.

TheMSAandtheStatesalmonfisherymanagementareverydifferentandtheycannotbequicklyandeasilyfullycoordinated.Itwilltakeseveralyearsofworkandregulatoryprocessmeetingstoaccomplishandinthemeantimethemanagementoftheseareasfortheupcomingsalmonseasonareinquestion.Thecourthasbeenunclearaboutwhethercurrentmanagementcancontinueforaallowedperiodoftimeinordertorespondtothecourtsrequirementsoriffishingsimplymuststopintheseareasuntiltheissueisfullyresolved.InrecentyearshighpercentagesofthesalmonresourcehasbeenharvestedinthefederalwatersofPrinceWilliamSound,roughlyfiftypercentforCookInlet,andtentotwentypercentfortheAreaMfishery.Consequently,thisisnotatrivialissueandsignificantnegativeimpactsforsalmonfishermencouldoccurunlesstheCourtprovidesareprieve.Indeed,oneadmittedlydraconianoptionfortheCounciltocomeintocompliancewithMSAistosimplytoclosesalmonfishinginthesethreefederalwaterareas.

ItseemsclearthatthemotivationofthosebringingthelawsuitisdissatisfactionwithStatemanagementandthedesirewastobringtheentiremanagementoftheCookInletareaintocompliancewiththeMSAwhichtheybelievewouldresultinmanagementmoretotheirliking.However,FederalmanagementoftheentiresalmonfisheryjustbecauseaportionofthefisheryisconductedinfederalwatersisnotarequirementoftheCourtdecision–thecourtisonlyconcernedwithhowthefederalportionofthesalmonfisheryismanaged.BothADF&GandCouncilstaffbelievethattheStatessalmonfisheriesareresponsiblymanaged.ThefullcommitmentoftheStateofAlaskaandtheNorthPacificFisheryManagementCouncilistojumpthroughwhateverregulatoryhoopstheyhavetoinordertobelegallyallowedtocontinuethefisheryascloselyaspossibletothewayithasalwaysbeendone.


Nevertheless,theredoesseemtobesomepotentialforthislegalactiontoforcetheAlaskaDepartmentofFishandGametochangehowtheydobusinessinwaysthatthelitigantsdesire.ForexamplethelitigantslegitimatelycomplainthattheStatesprocessfordevelopingescapementgoalsisnotadequatelytransparentandlackssufficientpublicparticipationintheprocessandtheyfavorablycomparetheStatesprocesstotheopenandtransparentworkingoftheScienceandStatisticalCommittee(SSC)duringmeetingsoftheNorthPacificFisheryManagementCouncilinaccordancewiththerequirementsoftheMagnusonStevensAct(MSA).

FromtheCouncilNewsletterregardingCouncilActiononthisissue:"TheCouncilactedonthisissuebydirectingstafftoprovidefurtheranalysisandtoworkwithADF&GtodevelopalternativestoamendtheSalmonFMP.TheCouncilprovidedapreliminaryrangeofalternativesthatincluded1)noaction,2)cooperativeFederalandStatemanagementwithasmuchdelegationtotheStateaspossibleundertheMSA,and3)fullfederalmanagementoffederalwaterportionsofthethreenetareas.”

“UnderanyCouncilactiononthisissue,managementofsalmonfishinginstatewaterswillremainunderfulljurisdictionoftheStateofAlaska.Aftertheirreviewoftherequestedfurtheranalysis,theCouncilintendstoformastakeholderworkgrouptoensurepublicaccessandinputduringdevelopmentoftheamendment.”

ElectronicMonitoring(EM)–makinglifeeasierforresidentsmallvesselhalibutfishermenTherequirementforourresidenthalibutfishermentocarryobserversiftheyareselectedthroughthelotterylikesystemisaheavyburdenandhascausedBoroughresidentfishermentocanceltheremainderoftheirseasonortolayofftheircrewandtaketheirquotaontoanothervessel.ElectronicMonitoring(e.g.videocameras)isasystemthatisbeingdevelopedbytheCouncilthatcouldallowfishermentocomplywiththeneedforanobserverwithouthavingtheproblemoftheadditionalpersononboard.EMwasslowtotakeoffformanyreasons.Firsttherewasseriousbureaucraticresistancethattooktheconcertedeffortofthecongressionaldelegationtobreakthrough.Secondlytheissue,whilesoundingsimple,isactuallyverycomplexwhenyouaretalkingaboutareliableandeffectivesystemthatcanbedeployedandmaintainedinremotefishingareas.ButyearsofhardanddedicatedworkispayingoffandnowthecurrentEMpre‐implementationprogramisbeingintegratedintotheObserverProgram.

FromtheCouncilNewsletter‐‐TheCouncilmotionaddressedtwoareas:

TheCouncilrequeststhattheagencydevelopanEMprogramfor2018thatisgenerallysimilartoEMdeploymentin2017,exceptthattheCouncilsupportsexpandingthesizeoftheEMpoolin2018toaccommodateupto120longlinevesselsandupto45potvessels,providedthereisfundingtosupportthispoolsize.

TheCouncildirectedstafftosubmitcommentstotheagencyonbehalfoftheCouncilontheEMIntegrationProposedRule,inlinewiththesixareashighlightedbytheconsensusoftheEMWorkgroup.

TheCouncilalsoheardintestimonythatthereiscontinuedinterestedinapplyingEMtothetrawlfisheries.TheCouncilhaspreviouslyissuedastatementinsupportofpilotprojectstestingEMintheGOAtrawlfisheries,inJune2016.TheCouncilencouragesproposalsfortestingEMintheBeringSeapollockfishery,whichwillbuildlargelyontheongoinguseofEMforcompliancemonitoringoffullretentioninthewestcoastwhitingfishery,toalsoconsiderhowthatworkcouldapplytotheuseofEMintheGOApollockfisheries,oreventobottomtrawlfisheriesinbothareas.


HalibutAbundanceBasedBycatch/PSCLimits:AnepicallocationbattleisbrewingatCouncil.HalibutfishermenandBeringSeaTrawlfishermenaresquaringoffforalongandcomplicatedbattleoverhowmanyhalibutthetrawlfishermenareallowedtoharvestasbycatch,ormoreaccurately,asPSC.ProhibitedSpeciesCatch(PSC)isbycatch–somethingyouarenotsupposedtobecatchingwhileyouaretargetingsomeotherspecies.HalibutarePSCforbottomtrawlandpelagictrawlfisheriesandtheyarecurrentlyallowedalimitedharvestofhalibutPSC.

Currentlyhalibutprohibitedspeciescatch(PSC)limitsintheBeringSeaandAleutianIslands(BSAI)arefixedamountsinmetrictonsregardlessofwhattheexploitablebiomassofhalibutis.Whenhalibutabundancedeclines,halibutPSCbecomesalargerproportionoftotalhalibutremovalsandcanresultinlowercatchlimitsfordirectedhalibutfisheries;conversely,whenhalibutareabundant,afixedamountofPSCcantriggerclosuresbeforethefullallowablecatchoftargetspeciesisharvested.NegativeimpactsonBeringSeahalibutfishermenresultedinthefishermenofSaintPaulIslandraisingthealarmthattheywereveryclosetolosingeverything.BoththeCouncilandtheInternationalPacificHalibutCommission(IPHC)haveexpressedconcernaboutnegativeimpactsondirectedhalibutfisheriesandhalibutdependentcommunitiesunderthestatusquoandidentifiedabundance‐basedhalibutPSClimitsasapotentialmanagementapproachtoaddresstheseconcerns.

Thescienceofhalibutabundanceiscomplexenoughthatinacontextofanallocationbattlethediscussionsaredifficult.Bottomtrawlfishermenhavesubstantially(includingvoluntarily)reducedtheirhalibutbycatchandfeelthattheygetnocreditforit.Theindustrialtrawlfleetwouldprefertonotevenacknowledgethattheyareinanallocationdispute.Theywouldpreferassumingthatasolutiontotheproblemthatisallocativilyneutralisthegoal.FordirectedhalibutfishermenitisperfectlyacceptablethatundercertainlowhalibutstockconditionsthatthePSClimitsconsiderednecessarytoprotectthedirectedhalibutfisherymightmeanthatthetrawlfishermenwouldnotbeabletoharvestalloftheirtargetspecies.Forhalibutfishermentheproblemisthatthetrawlfleetshavebeenallowedtoharvestfartoomanyhalibutandtochangethathasobviousallocativeimplicationsthatshouldnotbeavoidedorruledoffthetableattheoutset.

TheCouncilhassetupaninter‐agencyworkgrouptodevelopabundance‐basedapproachesforBeringSeaPSClimits.Twodifferentstakeholderworkshopshavealsobeenheld.TheAdvisoryPanelandtheCouncilreviewedtherecentdiscussionpaperwhichbuildsuponpreviouspaperswithdirectionasprovidedbytheCouncilandtheScienceandStatisticalCommitteeinOctober.

TheCouncilmadeseveralrequestsfortheworkgrouptoincorporateintothenextversionoftheexpandeddiscussionpaper,includingmuchofthefeedbackreceivedfromtheSSC.Theseincludesuggestionsonalternativeapproachesforestimatingrecruitment,stockstatusofhalibut,andprovidingadditionalrationaleandanalysisforeachproposedalternativeapproach.

JuneCouncilMeetinginJuneau,June5‐13–selectitemsontheagenda

2016ObserverAnnualReportandOACReport Area4HalibutIFQLeasingbyCDQGroups‐Finalaction BeringSeaYellowfinSoleTrawlLimitedAccessFishery‐Finalaction HalibutAbundance‐basedPSCLimits;CandidatePerformanceMetrics BSAICrabHarvestSpecificationsfor3StocksandPlanTeamReport–Finalaction Five‐YearResearchPriorities‐Finalizepriorities AJointIPHC/Councilmeetingwillbeheldfrom10amWednesdayto5pmWednesday


undercurrentnews.com

Sockeye prices expected to be firm,with projected harvest down from 2016

By Ola Wietecha May 10, 2017 18:01 GMT

4-5 minutes

As the short sockeye salmon season nears its start, many in the

industry are expecting prices to be firm once the first fresh product

hits the market.

Catches are expected to be lower than last year but still high

compared to the 10-year average.

Sockeye salmon harvests, which begin in mid-May in the Copper

River, are expected to decline about 23% in the state of Alaska,

according to salmon supply data McDowell Group senior seafood

analyst Andy Wink sent to Undercurrent News.

McDowell Group projected the 2017 sockeye harvest will be about

40.9 million fish, totaling 228.6m pounds.

Although the projected numbers are down from last year's, both the

number of fish and the total expected volume by weight are higher

than Alaska's 2013 though 2015 numbers.

In 2013, the state caught 29.3m fish (177.7m pounds), in 2014

44.1m fish (245.4m pounds), in 2015 55m fish (280.4m pounds)

and in 2016 52.9m fish (286.2m pounds).

One sockeye seller, who wish to remain unnamed, (source A) said

although it's impossible to know for sure what prices will do once

sockeye hits the market, high prices for farmed coho salmon as

well as the decreased projected harvest for Alaska will likely "put a

bit more pressure on sockeye".

He also said high farmed coho salmon prices have customers

increasingly switching back to sockeye.

"Farmed prices have a lot to do with [wild] prices, we're dealing with

Sockeye prices expected to be firm, with projected harvest down from 2016 about:reader?url=https://www.undercurrentnews.com/2017/05/10/sockey...

1 of 3 5/11/17, 6:48 AM


such a big volume [of farmed]," he said.

Source A also said he expects demand will be strong.

"We anticipate a strong market when sockeye do come online," he

said. "We're anticipating small numbers and a strong demand."

Another source, a fisherman also wishing to remain unnamed

(source B), stressed that although catches this year are lower than

last, the projection is still above the 10-year average, so it's hard to

say if this will necessarily push prices up.

"The forecast is lower than last year, but it's still a high forecast," he

said. "We're not expecting a low return."

"Last year was a huge gang buster. You can say it's down 23%

from last year, but at the same time, if you look at the 10-year

average, it's way up there," he said.

Prices may be pushed up by low inventory. Although most

companies choose not to disclose the level of their inventory,

source B said he suspects it is particularly low right now.

"I've heard inventory is quite low. Everybody says it's low, I don't

know if it's true or not, but it seems to be true because...I'm getting

a lot more inquiries than I used to, and people usually call me as a

last resort," source B said. "I'd say there's practically no inventory."

However, source B also said it's hard to predict which way prices

will go.

"There's a 50-50 split between those who think prices will go up and

those who think prices will go down," he said.

Jon Daniels of wholesale buyer Seattle Fish Company said,

however, that he thinks inventory levels are "normal" now.

"I haven't noticed anyone really short. We have a couple of the

premium brands that sold out in the last week or two, but I haven't

heard anyone say 'please take it off our hands' which did happen a

few years back," he said.

According to Daniels, last year prices for fillets at retail started off at

around $30/lb, and then dropped to $25/lb.

He added that the price will drop faster depending on how fast


2 of 3 5/11/17, 6:48 AM


other fishing areas in Alaska open up.

"I think if we get four openers in a row, within eight days, the price

will drop fast, but if we have to wait four to five days between

openers, it'll really keep the price high for the first two weeks," he

said.

Daniels said that prices will definitely fall by June 15, when the

whole state of Alaska opens up to fishing.

"Somewhere between [the opening of the season] and June 15 the

market will drop. You have to be careful, you don't want to be sitting

on too much inventory [when that happens]," he said.

Contact the reporter [email protected]


3 of 3 5/11/17, 6:48 AM


E. 7. Reports Finance


Lake and Peninsula BoroughP.O. Box 495


Telephone: (907) 246-3421Fax: (907) 246-6602


May 2017 Finance Report

March 30, 2017

To: Mayor Alswoth & Borough AssemblyCC: Nathan Hill, Borough Manager

An analysis of the two tax options presented in Mike McLaughlin’s memo is as follows:Option AIncreasing the bed tax to $10/person/per night would increase revenue by 40%, e.g.; for FY2016 bed tax revenue was $180,069 and that would translate to an additional $120 thousand in revenue to $300,115. While this would help, it is only 20% of the budget short fall.Option BThis option almost brings us back almost full circle to my original presentation three years ago tocapturing all visitors to the borough. For example, just taking 2016 visitor counts for Katami and Lake Clark National Parks:Katami

JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC

2016 100 100 100 100 100 5,140 16,676 10,222 4,980 100 100 100 39,834

Revenue 1,000.00 1,000.00 1,000.00 1,000.00 1,000.00 51,400.00 166,760.00 102,220.00 49,800.00 1,000.00 1,000.00 1,000.00 378,180.00$

Lake Clark

FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC

JAN

2016 147 203 309 298 596 3,647 5,982 6,188 2,989 301 227 215 23,118

Revenue 1,470.00 2,030.00 3,090.00 2,980.00 5,960.00 36,470.00 59,820.00 61,880.00 29,890.00 3,010.00 2,270.00 2,150.00 211,020.00$

Total Revenue 589,200.00$

These numbers from the NPS just count unique visitors and number of days a visitor may have stayed with in the park. When you look at lodging and camping numbers for Katami (Lake Clark does not have any lodging or camping within the park):

FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC

JAN

Lodging 2016 0 0 0 0 0 1,034 1,454 994 734 0 0 0 6,232

Camping 0 0 0 0 0 200 1,595 303 0 0 0 0 2,098

Total Persons 8,330

Assuming an average of 2.5 day stay @ $10/person per day, that would garner $208,250 in revenue and a total for Katami alone:

Day visitors 315,040

Overnight visitors 208,250

523,290$


Lake and Peninsula Borough


So, the theoretical revenue from just the NPS visitors from an excise tax would be $735,310. Adding in non NPS visitors, it is conceivable that the Borough could have potential revenue of $1 million per year. This would certainly cover budget shortfalls and relieve the borough of the uncertainty of State largess.

An advantage to this option would be that it wouldn’t be an administrative change for the borough or currently registered lodge and guide operators. It is still the per person, per dayschema that current code uses.

Diversified revenue streams make the borough more resilient to change by lessening the dependence upon one tax revenue source. Currently, 90% of the borough’s operational revenue comes from just two sources; fish tax and State revenue sharing (this does not include debt reimbursement amounts). We are all aware of the uncertainty of State sources and that fishing has its good years as well as its bad years.

Revenue from the excise tax eases reliance upon State sources and can prop up revenues in a bad fishing year allowing the borough to meet its obligations with either not having to draw upon reserves or doing so only minimally. In the better years for fish tax, General Fund reserve could be replenished.

70%5%

1%4%

20%

1

0% 10% 20% 30% 40% 50% 60% 70% 80%

Revenue Share

State Revenue Sharing Pebble Mine

Guide Tax Bed Tax

Raw Fish Tax

56%

25%

3%

16%

1

0% 10% 20% 30% 40% 50% 60%

Revenue Share w/ Excise Tax

State Revenue Sharing Pebble Mine Excise Tax Raw Fish Tax




Investment Portfolio Restructuring

I have done some work on the question of what, if anything, the borough should do with their investment portfolio. At the Spring Alaska Government Officers Association Conference, I attended last month, I had the opportunity to speak with several investmentprofessionals about the borough’s portfolio and while each of them had were emphasizing the strengths of the companies they were representing, there were these two commonalities among them:

1. What are the expectations for the investment portfolio?2. How are those expectations part of the overall financing matrix for the borough?

As it is now, the borough’s investment policy emphasizes safety and the accumulation of sufficient reserves to weather any critical need for funds, and it has been successful. The borough’s large reserves put it in an enviable position given the turmoil other municipalities are experiencing due to State budget cuts, not that the borough has been completely unscathed, the reduced school district budget means less income to villages and residents for example.

The first principal is to understand investing risk.

The borough’s investment policy as dictated by code has been much to the “green” side of the risk spectrum, with the bulk of assets low risk and very safe investments; government bonds and insured money market vehicles, with a small portion in mutual fund equities. This has protected the borough’s investment and has been liquid enough that when the borough needed to draw from reserves, cash was available without any appreciable penalty or loss since bonds and money market securities do not lose their initial investment value. This is not true with equity investments, equities meaning the stock market, which can go down as well as up – volatility.




Here is the investing matrix:

Understanding this matrix in view of the risk spectrum, it is then a matter of allocating assets into securities to fit the level of risk/return desired.


05/05/17 LAKE AND PENINSULA BOROUGH Page: 1 of 1

13:56:18 Balance Sheet Report ID: L150

For the Accounting Period: 5 / 17

10 GENERAL FUND

Assets

Current Assets

WELLS FARGO CHECKING ( 563,516.53)

WELLS FARGO TRUST 1,060,019.98

TIME VALUE INVESTMENTS 1,531,107.65

TD AMERITRADE 1,702,018.56

SCOTTRADE 0.77

ACCOUNTS RECEIVABLE 182,620.48

PREPAIDS 3,105.33

----------------

Total Current Assets 3,915,356.24

------------------

Total Assets 3,915,356.24

Liabilities and Equity

Current Liabilities

ACCOUNTS PAYABLE ( 20,000.00)

DEPOSITS PAYABLE 21,400.00

PAYROLL ACCRUALS & LIABILITIES 19,224.50

PERS 2,502.39

SBS 473.00

FEDERAL WITHHOLDING 1,891.61

MEDICARE CONTRIBUTION 201.93

ACCRUED ANNUAL LEAVE 8,344.00

FICA CONTRIBUTION ( 219.32)

----------------

Total Current Liabilities 33,818.11

------------------

Total Liabilities 33,818.11

Equity

FUND BALANCE - UNASSIGNED 3,855,591.65

CURRENT YEAR INCOME/(LOSS) 25,946.48

----------------

Total Equity 3,881,538.13

------------------

Total Liabilities & Equity 3,915,356.24


05/05/17 LAKE AND PENINSULA BOROUGH Page: 1 of 113:56:48 Income Statements Summarized Report ID: LB170AS1 For the Accounting Period: 5 / 17

10 GENERAL FUND———————————————————————————————————————————————————————————————————————————————————————————————————————————————————————————————————— ------------------- Current Year -------------------------- CurrentAccount Description Month Current YTD Budget Variance %————————————————————————————————————————————————————————————————————————————————————————————————————————————————————————————————————

Revenue 30000 REVENUES 3,034.40 2,534,664.14 2,532,538.00 2,126.14 100 30100 REVENUE FROM STATE 466,291.76 741,751.00 -275,459.24 63

Total Revenue 3,034.40 3,000,955.90 3,274,289.00 -273,333.10 92

Expenses 41100 ASSEMBLY 205.39 186,025.50 195,612.00 9,586.50 95 41300 PLANNING COMMISSION 39,381.04 22,515.00 -16,866.04 175 41400 ADMINISTRATION 35,980.74 766,474.20 896,675.00 130,200.80 85 41500 ELECTIONS 1,776.00 4,278.00 2,502.00 42

Total Expenses 36,186.13 993,656.74 1,119,080.00 125,423.26 89

Net Income from Operations -33,151.73 2,007,299.16

Other Revenue 30200 OTHER SOURCES -2,008,219.46 893,323.00 -2,901,542.46 225

Total Other Revenue 0.00 -2,008,219.46 893,323.00 -2,901,542.46 225

Other Expenses 42000 COMMUNITY/ECONOMIC DEVELOPMENT 122,200.00 122,200.00 42200 ILIAMNA DOCK REHAB 202.30 -202.30 43100 FISHERIES ADVISOR 36,000.00 54,000.00 18,000.00 67 43110 BOARD OF FISH 9,301.90 8,104.00 -1,197.90 115 43600 BOROUGH STRATEGIC PLAN 2,063.58 11,519.94 70,000.00 58,480.06 16 46000 MANAGERS CONTINGENCY 10,000.00 10,000.00 49200 STATE REVENUE SHARING 90,300.00 90,300.00 100 49400 BOROUGH REVENUE SHARING 175,000.00 175,000.00 100 49500 SHARED FISHERIES BUSINESS TAX 26,500.00 26,500.00 49800 OTHER FINANCING USES -349,190.92 2,253,060.37 2,602,251.29 15

Total Other Expenses 2,063.58 -26,866.78 2,809,164.37 2,836,031.15 1

Net Income -35,215.31 25,946.48


E. 8. Reports Lobbyist


LEGISLATIVE REPORT #17-07 By Mark Hickey, Hickey & Associates – April 23, 2017

Extra Innings! Again! No Movement on FY 2018 Budgets/Major Differences Remain

The legislature spent its

first week following the

statutory deadline of

ninety days with little

movement on the FY 2018

budget and hearing many

bills not related to the

fiscal challenge. Many

observers expect the

session to continue until

the 121-day deadline and

beyond into the summer.

The House completed its

work on three major

pieces of its fiscal plan by

day ninety - HB 111

reforming state oil taxes

and credits, SB 26 restruc-

turing the Permanent Fund

using a POMV method, and

HB 115 imposing a statewide

income tax generating nearly

$700 million annually.

The House and governor

appear more closely on the

same page supporting a

broad-based tax, while the

Senate remains adamantly

opposed to any such measure

this year. The Senate began

hearings on HB 111, but is

unlikely to accept more than

minor adjustments on oil taxes

and credits. Hearing are also

scheduled during the

upcoming week on HB 115, but

this bill is not expected to gain

Senate support.

The Senate recently announced its K-12 cut of $69

million for FY 2018, while also proposing new bills

to provide “a funding stream to bridge the

achievement gap” using 21st century technologies.

Senate Bills 96, 102, 103 & 104 propose new programs

to fund more internet broadband access, virtual

education, and innovative education grants, funded

by eliminating the Alaska Performance Scholarship.

Senate Unveils Education Plan; New Fishery-Related Proposals

Special Orders

Education Funding

The Senate passed its version of the FY 18 operating budget, cutting $70 million or 5% of K-12 education funding. Full funding of the state’s share for school debt reimbursement was provided. No movement yet to appoint the Conference Committee on the budget.

Community Assistance

Funding exists in the Community Assis-tance Fund to provide $30 million for community assistance in FY 18, which is a decrease of 21% from FY 17. Lower populated communities will experience a smaller reduction. No additional funds for future years have been added in either version of the FY 2018 operating budget.

Today marks the 97th day of the First Regular Session of the 30th Alaska State Legislature.

Motor Fuel Taxes Both the House and Senate versions of the governor’s proposal to triple the state excise taxes on motor fuels were heard recently by the respective Finance Committees. The Senate’s passed version of the operating budget assumes passage of this bill as proposed by the governor. There are indications the Senate plans to act on this measure yet this year.

Two new fishery-related proposals were introduced

recently – HB 188, known as the “Wild Salmon

Legacy Act,” and HB 233/SB 116 to extend the sunset

date on numerous education tax credits, including a

number related to fishery taxes. HB 188 updates

Alaska’s fish habitat protection and permitting law.

It is scheduled for its first hearing on April 25. HB

233/SB 116 extends the credit until January 2025.


A bi-weekly report by Mark Hickey

Issue #17-07, April 23, 2017

2

Check out what your legislators are up to in Juneau! New bills appear in BLUE, while any

change in status will be in RED.

HJR 2 by Rauscher HJR 7 by Tilton

SJR 2 - State Affairs

Proposes a constitutional amendment to impose a spending limit of approximately $4 billion.

HJR 2/7 pending House STA

SJR 2 pending Senate STA

HB 57/SB 22 by governor

Operating Budget—Difference in the Base Student Allocation amount for K-12; fully funds school debt reimbursement program in FY 2018.

HB 57 passed House 3/24, passed Senate 4/6, awaiting conference appointment


Capital Budget—Very barebones submittal. No additional funding for school capital projects.

SB 23 pending Senate FIN

HB 111 by House Resources HB 133 by Gara

HB 111 amends Alaska’s system of oil & gas tax credits to reduce state fiscal impact. HB 133 addresses portions of the current oil and gas tax regime created by SB 21, but not tax credits.

HB 111 scheduled Senate RES & FIN 4/24 - 4/28 HB 133 pending House Resources

HB 115 by House Finance SB 101 by Olson

The version passed by the House imposes a state income tax (now based on adjusted gross income) offset by PFD credit. SB 101 proposes the income tax piece as well.

Passed House 4/16, scheduled Senate L&C 4/26 – 4/27 (public testimony) SB 101 pending Senate L&C

HB 161 by Rauscher Places an advisory vote on the use of permanent fund earnings to finance government before qualified voters at the next general election.

Pending House State Affairs

HB 192 by Pruitt Proposes an appropriation limit on Unrestricted General Fund and creates a new formula for PFD calculation and distribution.

Pending House Finance

Summary of State Legislation Each report will provide a list of legislative

measures of interest, divided into five main

topics: fiscal plan measures, general

municipal issues, education measures, fishery

& resource issues, and energy matters.

House measures will be described first,

followed by Senate measures. Companion

bills (measures in both bodies) will be listed

together, with priority to bills sponsored by

majority members.

More information about these measures can

be found at Alaska State Legislature.

Here’s hoping we’re done by the All-Star Game!

Fiscal Plan Measures

Continued on page three


http://w3.legis.state.ak.us/


Issue #17-07, April 23, 2017

3

SJR 1 by Wielechowski

Proposes a constitutional amendment to guarantee Permanent Fund dividends using a POMV method.

Pending House Judiciary

SB 12 by Bishop Establishes an employment tax on wages and net earnings from self-employment. Permits use of proceeds to fund education facilities.

Pending Senate Labor & Commerce

SB 21 by Stedman

Proposes a new formula to determine the amount of the annual Permanent Fund dividend, with a cap on use of earnings to fund state services.

Pending Senate Finance

SB 25/HB 60 by governor

Proposes tripling the excise taxes on motor fuels to be phased in over a two-year period. House TRA CS reduces marine fuel tax for commercial fishing and delays the second increase by 1 year.

SB 25 pending Senate Finance HB 60 pending House Finance

SB 26/HB 61 by governor

Restructures Permanent Fund by annual transfer of up to 5.25% of the five-year POMV average to the general fund to pay for state services and the PF dividend. Sets the dividend at $1,000 for next 2 years, with similar results expected in future.

SB 26 passed House 4/12 Senate failed to concur 4/14 House failed to recede 4/16 HB 61 pending House Finance

SB 70 by Senate Finance

Restructures Permanent Fund using 5.25% of the POMV earnings until FY 2021, then reduces the draw to 5%, sets the dividend at $1,000 for 3 years, and imposes a statutory spending limit.

Pending Senate Finance Inserted into SB 26 as replacement

SB 84 by Dunleavy HB 187 by Wilson

Defines the intent of the legislature to use the equal draw principle for use of earnings from the permanent fund, splitting any draw equally with dividend payments.

SB 84 pending Senate Finance HB 187 pending House State Affairs

SJR 7 by Dunleavy

Provides that a tax, a tax increase, or any other revenue-producing measure shall not take effect until approved by the voters of this state.

Pending Senate L&C

SJR 8 by Begich Proposes an amendment to the Alaska Constitution that investments made from the principal of the Permanent Fund shall adhere to the “prudent investor rule”. Enshrines dividend in the constitution.

Referred to Senate State Affairs, Judiciary, and Finance



Issue #17-07, April 23, 2017

4

HB 4 by Thompson SB 9 by Coghill

Requires military facility zone designations to be consistent with local zoning ordinances.

HB 4 pending House CRA SB 9 passed House 4/12 Awaiting transmittal governor

HB 11 by Kawasaki Allows employers to adopt a retirement incentive program (RIP) for both TRS and PERS members of a defined benefit plan.

Heard and held House State Affairs 4/20

HB 20 by Claman Allows individuals holding elective public office in the state to solemnize marriages.

Pending House Rules

HB 35 by Gara Establishes a new “Safer Alaska Streets and Communities Program” as a supplement to Community Assistance. Requires use of funds for police, fire and EMT services or other priorities.

Pending House C&RA

HB 37 by Josephson Requires the state to contribute towards PERS for a peace officer or firefighter who’s unable to work and is receiving workers’ compensation.


HB 45 by Tarr Creates the Equal Pay and Living Wage Act, increasing the minimum wage to $15 and expands duties of State Commission for Human Rights.


HB 46 by Tarr Increases in-state preference requirements on a municipality purchasing agricultural or fisheries products harvested or processed outside the state.


HB 47 by Foster Provides relief for local PERS contribution by municipalities with a population that decreased by more than 25 percent between 2000 and 2010.

Moved from House Finance 4/13, pending Rules

HB 50 by Kito Requires use of most “qualified and suitable” provider of architectural, engineering, or land surveying services for state-funded contracts.


HB 72 by Thompson Establishes procedures on the collection of biometric data. Applies to municipalities.

Pending House Judiciary


Brings Alaska into compliance with the federal REAL ID Act. Provides for noncompliant ID’s.

HB 74 heard & held House FIN 4/20, public testimony 4/25 SB 34 heard & held S. FIN 4/12

HB 82 by Kreiss-Tomkins

Allows off-highway driver’s licenses for residents in any community with no access to a DMV.

Passed House 4/9 Referred Senate TRA & STA

HB 83 by Kito SB 52 by Egan

Allows teachers and other public employees a choice between a defined benefit pension versus the current defined contribution 401K plan.

CS for HB 83 expected House L&C SB 52 pending Senate C&RA


Increases the amount a municipality may exempt from property tax from 50,000 to $150,000 of assessed value.

Pending House C&RA

Continued on page five

General Municipal Issues



Issue #17-07, April 23, 2017

5

HB 91 by Kito Establishes an administrative registration fee for registered lobbyists, and imposes a tax of 2.5% on income earned from lobbying activities.

Heard and held House Finance 4/17

HB 116 by Eastman Repeals 1% art in public places requirement for contracts entered after effective date.


HB 117 by House Transportation

Provides that the two new Alaska Class Ferries and the replacement vessel for the MV Tustumena are not subject to 1% art requirement.

Pending House Transportation

HB 148 by Chenault SB 77 by Micciche

Provides that a second-class borough may establish a service area for emergency services within a state highway corridor if no voters reside in that service area.

HB 148 passed House 3/31 Passed Senate 4/16 (SB 106 added), pending House concur SB 77 pending Senate C&RA

HB 156 by Tilton SB 106 by Coghill

Provides municipalities may partially or totally exempt all or some types of economic develop-ment property from taxation for “a designated period” replacing 5 years in current law. SB 106 adds exemption for fire protection systems.

HB 156 pending H C&RA SB 106 pending Senate C&RA SB 106 rolled into HB 148

HB 160 by Tilton Replaces current language on the use of enhanced 911 surcharge revenues. Redefines what is meant by “emergency communications system”.

Pending House C&RA


Authorizes the Dept. of Public Safety to make agreements with nonprofit regional corps. and federal, tribal and local government agencies to provide law enforcement services.

HB 163 heard and held House State Affairs 4/11 SB 82 pending Senate C&RA

HB 175 by Fansler Adds Alaska to the National Popular Vote Compact for election of the U.S. President & Vice-President

Heard and held House Judiciary 4/12

HB 185 by Sullivan-Leonard

Requires that all regular sessions of the Alaska Legislature occur at the Legislative Information Office in the Municipality of Anchorage.


HB 205 by Eastman Prohibits a municipality from adopting or enforcing an ordinance or policy regarding sanctuary jurisdiction.

Pending House C&RA

HB 223 by Claman

Prohibits penalties for violations of a municipal ordinance greater than what the state requires.

Referred to House Judiciary

HB 225 Johnston by request

Clarifies that a “nonconsensual common law lien” is a lien on real or personal property that is not specifically in municipal ordinances.

Referred to House Judiciary

SB 116 by Coghill HB 233 by Tuck

Extends the sunset of numerous education tax credits from December 28, 2018 to January 1, 2025, and repeals the decrease in dollar value and scope scheduled for January 1, 2021.

SB 116 referred Senate L&C & FIN HB 233 referred House EDC & FIN

HB 236 by Kawasaki Extends the Alaska senior benefits payment program from June 30, 2018 to June 30, 2022.

Referred to House HSS and Finance

Continued on page six



Issue #17-07, April 23, 2017

6

HJR 6 by Edgmon Supports completion a road from King Cove to the Cold Bay Airport, and supports the efforts of our congressional delegation to obtain the road.

Transmitted to governor on 2/17, becoming Legislative Resolve #1

HJR 14 by Edgmon Urges the Federal Communications Commission to increase the Rural Health Care Program budget for inflation, increase demand, and technology.

Passed House 4/5 Moved from Senate HSS 4/14 Referred to Rules

SB 8 by Stevens Provides that federally recognized tribal governments may also receive contributions through the PFD application process.

Pending Senate State Affairs

SB 18 by Hoffman Provides authority to create an “energy” borough, but maintains any existing regional educational attendance area (REAA) funded solely by state.

Pending Senate C&RA

SB 42 by Giessel HB 16 by Thompson

Requires mandatory law enforcement training to recognize people with disabilities. Adds a disability designation on a state ID card.

SB 42 pending Senate STA HB 16 pending Senate Rules

SB 62 by D. Wilson HB 153 by Eastman

Repeals the certificate of need (CON) program for health care facilities. Defines what is meant by a “residential psychiatric treatment center”.

SB 62 pending Senate L&C HB 153 pending House HSS

SB 63 by Micciche Proposes a comprehensive, statewide ban on smoking in work places and public places.

Passed Senate 3/27 Heard and held House C&RA 4/18

SB 76 by Micciche Clarifies that only the Alcohol Beverage Control Board may authorize certain licenses, permits and endorsements.

Pending Senate L&C

SB 90 by D. Wilson Prevents the Dept. of Health & Social Services from awarding a matching grant to a muni or community for the costs of providing essential human services.

Pending Senate C&RA

SB 97 by MacKinnon Proposes more legislative oversight of decision by administration to issue pension obligation bonds. Caps allowable amount at $2.5 billion.

Passed Senate 4/7

Heard and held House Finance 4/19

SB 100 by Egan as request

Provides that municipal liens have the same authority as state and federal liens under Alaska statutes.

Passed Senate 4/11 Scheduled House Rules 4/26


Clarifies funds from the Alaska capital income fund are for state facilities preventive or deferred maintenance versus “any public purpose”.

Passed Senate 4/12 Referred to House Finance

SB 113 by Stevens

Changes when the first regular session of a legislature convenes, and increases the duration of the second regular session from 90 days to adjourn within 120 days.

Referred to Senate Finance



Issue #17-07, April 23, 2017

7

HB 26 by Tarr Requires employers to provide breaks and private rooms for nursing mothers.

Pending House Labor & Commerce

HB 30 by Tarr Requires employers to provide 1 hour of paid sick leave for every 40 hours worked.

Pending House Labor & Commerce

HB 34 by Tarr Increases the minimum distance for selling alcohol near schools from 20 to 500 feet.

Pending House C&RA

HB 52 by Kawasaki SB 99 by Begich

Defines pre-elementary programs within school districts, and requires regulation of such programs by the Board of Education.

HB 52 pending House EDU SB 99 pending Senate EDU

HB 64 by Drummond SB 27 by Dunleavy

Establishes a new task force on reading proficiency and reading instruction, and on the effects of dyslexia.

Both bills pending Senate EDU


Proposes a two-year freeze on salary increases and merit step increases for non-union state and University employees.

HB 71 pending State Affairs SB 31 passed Senate FIN 4/10, pending Senate Rules

HB 86 by Claman Removes default of a student loan as a reason to deny renewal of occupational license for a registered financial broker-dealer.

HB 86 passed House 3/29 Pending Senate L&C

HB 102 by Kreiss-Tomkins SB 75 by Costello

Amends existing law relating to “limited teacher certificates” by restricting the initial certificate to a one-year period.

HB 102 passed House 4/5, heard & held S. L&C 4/11 SB 75 pending Senate L&C

HB 135 by Westlake Amends the school construction grant program to allow DEED to extend the time for a district to provide the required local match.

Passed House 4/5. passed Senate EDU 4/14, referred Senate FIN

HB 146 by Claman Proposes a school tax on earnings and wages, with the intent that the proceeds are used to fund K-12 public education.

Heard & held House FIN 4/4

HB 212 by Westlake Adds funding of “major maintenance” projects to the REAA & small municipal school district fund.

Pending House Education

HB 213 by Parish Amends law relating to investment and use of earnings from the public school trust fund to generate more annual investment income.


HB 221 by Drummond

Authorizes the Commission on Postsecondary Education to develop a statewide workforce and education-related statistics program.

Referred House Education & Finance

Education Measures

Continued on page eight



Issue #17-07, April 23, 2017

8

HB 224 by Johnston Establishes a new mechanism to rehire retired teachers and allow continued receipt of retirement benefits.

Referred House State Affairs & Finance, heard & held 4/18, scheduled 4/25

SB 7 by Stevens HB 166 by Parish

Establishes a museum construction matching grant program in Commerce.

SB 7 pending Senate Finance HB 166 heard & held House FIN 4/12

SB 78 by Bishop Creates an education endowment fund and a PF dividend lottery or raffle to help fund K-12 education.

Passed Senate 4/14 Scheduled House FIN 4/28

SB 87 by MacKinnon

Proposes use of energy efficiency standards and standardized building methods and equipment for school construction and major maintenance.

Passed Senate EDU 3/29, heard & held 4/6, plan to hold until next session

SB 96 by Education Proposes several measures including new virtual education program, school consolidations and funding to pursue health insurance pooling.

Pending Senate Finance


Increases funding for Internet services for school districts, with intent to bring 197 additional schools up to 25Mbps.

Passed Senate FIN 4/14, Pending Senate Rules


Establishes the Alaska education innovation grant program, providing funding by eliminating the Alaska performance scholarship program.



Provides all school districts with a three-year reprieve from updating or renewing curriculum, and directs DEED to find new curriculum for math and English language arts as a new option.


HB 14 by Josephson Increases and broadens scope of permitting requirements for a large-scale metallic sulfide mine within the watershed of the Bristol Bay Fisheries Reserve.

Scheduled House Fisheries 4/27

HB 17 by Josephson Establishes a fish and wildlife conservation program within the fish and game fund.

Pending House Resources

HB 29 by Tarr Prohibits the sale of genetically modified fish or fish product in the state.

Pending House Fisheries

Continued on page nine

Fishery & Resource Issues



Issue #17-07, April 23, 2017

9

HB 32 by Tarr Provides guidelines for the labeling of genetically engineered food.


HB 39 by Josephson Strikes existing language for non-residents not being required to have a non-resident wolf tag to take a wolf.


HB 40 by Josephson Provides penalties and civil remedies for trapping within 200 feet of certain public facilities, areas and trails.


HB 56 by Ortiz SB 71 by Stevens

Increases the amount a borrower may have outstanding on certain commercial fishing loans from $300,000 to $400,000.

HB 56 passed House 3/27 Heard & held Senate FIN 4/17 SB 71 pending Senate Finance

HB 63 by Pruitt Transfers several responsibilities from the Dept. of Commerce to Revenue, including certain agricultural functions. Establishes an Alaska Minerals Commission within Natural Resources.



Allows hatcheries that artificially propagate aquatic plants and shellfish for sale to be an eligible applicant for state loans and sets limits.

HB 76 scheduled House Finance 4/14 SB 95 pending Senate Finance

HB 87 by Stutes Provides that a member of the Board of Game or Fisheries may deliberate on a matter before the board even if they or an immediate family member have a personal or financial interest. CS removed option to allow members to vote.

Passed House 3/27 Pending Senate State Affairs

HB 88 by Stutes Increases the Board of Fisheries from seven members to nine members.


HB 101 by T. Wilson Creates an affirmative defense and an exemption from payment of fines for those reporting the unlawful taking of certain big game animals.



Adds new program to Title 16, authorizing nonprofits to engage in shellfish enhancement projects with conditions and exemptions.

HB 128 scheduled House Finance 4/26 SB 89 pending Senate Finance


Allows for a person to correct a citation for not having the appropriate license or tag on their person. Also allows person to produce license in electronic form.

HB 129 pending House JUD SB 60 pending Senate Judiciary

HB 134 by Josephson Proposes at least one member of the Board of Game whose main use of game resources is non-consumptive, and one member who is actively engaged in the tourism industry.

Pending House Rules

Continued on page ten



Issue #17-07, April 23, 2017

10

HB 149 by Chenault Provides the Board of Fisheries shall meet on a five-year cycle to consider regulatory proposals, and defines the general area of Southcentral to include Kenai.


HB 154 by Fansler Creates new authority to create state fish and game reserves, and establishes the Holitna River Basin Hunting, Fishing and Trapping Reserve.


HB 177 by Tarr Establishes the aquatic invasive species response fund, and provides ADF&G a broad spectrum of methods to try and eliminate any outbreak.

Passed House Resources 4/15, scheduled House FIN 4/25

HB 183 by Talerico Provides for a PFD land sale using a lottery to sell parcels of land from the state’s Land Disposal Bank.



Establishes a Regional Fisheries Trust to retain fishing permits and then lease them to Alaska fishermen for a limited period.

Scheduled House Fisheries 4/25

HB 199 by Stutes Known as the “Wild Salmon Legacy Act,” it updates Alaska’s fish habitat protection and permitting law.

Heard and held House Fisheries 4/12

HB 201 by Josephson Authorizes home rule and general law muni’s to regulate trapping for the limited purpose of preventing injury to persons or property.

Moved from House C&RA 4/13, moved from House Resources 4/17, pending Rules

HB 211 by Westlake Specifies that a nonresident must be accompanied by a person who is qualified to hunt caribou from certain select caribou herds.

In 3rd reading, House calendar 4/24

HB 231 by Governor SB 115 by Governor

Adjusts the salary ranges for the commissioners of the Commercial Fisheries Entry Commission (CFEC) downward.

HB 231 referred to House Fisheries and Finance SB 115 referred to Senate State Affairs and Finance

HB 237 by Neuman

Requires the Board of Fisheries to set an “optimal escapement goal” for salmon stocks to meet.

Referred to House Fisheries and Resources

HJR 12 by Tarr Opposes the U.S. Food & Drug Administration’s approval of AquaBounty AquAdvantage genetically engineered salmon.

Passed House 4/5 Referred to Senate Resources

HCR 8 by House Fisheries SCR 7 by Stevens

Expresses strong support for the Kodiak Seafood and Marine Science Center, and urges the University of Alaska to maintain that entity as an important resource in the state.

HCR 8 passed House 4/7

Waived Senate EDU, pending Senate L&C SCR 7 pending Senate EDU

Continued on page eleven



Issue #17-07, April 23, 2017

11

SB 3 by Stedman HB 51 by House Transportation

Amends laws relating to regulation of waste-water discharge from small commercial passenger vessels.

SB 3 moved from House Finance 4/14, scheduled Rules 4/26 HB 51 pending House Finance

SB 11 by Bishop Establishes that the taking of antlerless moose is prohibited except as authorized by emergency order.

Pending Senate Resources

SB 64 by Micciche Adopts the Uniform Environmental Covenants Act. Provides for notices of activity and use limitation at contaminated sites.

Passed Senate 3/27 Heard and held House L&C 4/17

HB 80 by Wool SB 39 by Coghill

Adopts the “Municipal Property Assessed Clean Energy Act”, and authorizes municipalities to establish an energy improvement assessment program known as the Commercial Property Assessed Clean Energy (C-PACE) program.

HB 80 passed Senate 4/16 Awaiting transmittal governor SB 39 pending Senate Finance


Makes federally recognized tribes and non-profits eligible for loans from the Alaska energy efficiency revolving loan fund.

Passed House 3/24 Moved from Senate L&C 4/13

HB 173 by Josephson Establishes the Alaska Climate Change Response Commission and fund. Creates a $.01 per barrel surcharge on all oil produced on state lands.


HJR 18 by Tuck Calls on our Congressional delegation to promote Alaska as a leader in renewable energy development.

Pending House Energy

Energy Matters


E. 9. Reports Clerks




Telephone: (907) 246-3421 Fax: (907) 246-6602


Date: May 6, 2017



Re: Clerks Report

It was a short period between meetings this month. Here is what I have worked and/or am working on in the Clerk’s office:

Meetings – At this writing I am not sure we will need a special meeting later in May, so our next meeting will be August 15th. I propose we do the Chignik dock ribbon cutting at this meeting and do the routing on the ferry, as we had planned for May, but had to change due to the Tustemena’s dry dock schedule.

Elections –The attorney and I have drawn up a contract for transcriptions services and AlexAnna has connected me with a couple of experienced Yupik transcriptionists. The work needs to start right away so we can get documents drawn up and envelopes printed in time for the elections. Not counting any ballot measures, the transcription expenses should run around $1500. I have attached the election calendar for reference.

Agenda Management – I have been looking into agenda management software for some time. This will save me work, but most importantly, will be easier for the Assembly members. The program will be similar to the program the School Board uses. I will be implementing a program over the summer.

Minutes – I have not had a chance to complete last month’s minutes. I have been travelling a lot. I appreciate your understanding.

Vacation – I will be travelling the rest of May and will be back the first part of June.


Lake and Peninsula Borough 2017 Election Timetable January Provide front office with copies of 2017 forms

Monday, May 15, 2017 Order election supplies, if necessary

Monday, May 15, 2017 Send Notice of Open Nominations to Anchorage Daily News to run on 5/28

Monday, May 15, 2017 Send Notice of Open Nominations to all Postmasters in Borough for posting

Monday, May 15, 2017 Send nominating petition packets & notice of Open nominations to all village/city council offices

Monday, May 15, 2017 Notify elected officials whose terms are expiring Monday, May 29, 2017 Memorial Day - Office Closed

Sunday, May 28, 2017 Notice of Open Nominations printed in Anchorage Daily news

Monday, June 05, 2017 Nominations Open Tuesday, July 04, 2017 Independence Day - Office Closed

Tuesday, August 8, 2017 Send Notice of Election to Anchorage Daily News to run 8/27/17 (at least 30 days prior)

Tuesday, August 8, 2017 State Primary Election Day Saturday, August 20, 2017 Day 45 - Nominations close Thursday, August 25, 2017 Print ballots & compile election packets Sunday, August 27, 2017 Notice of Election printed in Anchorage Daily News

Sunday, September 03, 2017 Last day to register to vote in 10/3/17 general election (30 days prior to election)

Monday, September 04, 2017 Labor Day - Office Closed Wednesday, September 13,

2017 Request voter registration list (907-443-5285)

Wednesday, September 13, 2017

Last day to withdraw candidacy

Wednesday, September 13, 2017

Mail ballots to registered voters

Tuesday, October 03, 2017 Municipal Election Day Saturday, October 24, 2017 All ballots must be received by the Borough Clerk Monday, October 24, 2017 Canvass committee meeting – after 5 pm

Tuesday, November 01, 2017 Assembly meeting - Assembly certifies election

Thursday, November 03, 2017 Mail precinct registers to Division of Elections for voter history


E. 10. Reports

Superintendents


Date: May15,2017To: LakeandPeninsulaBoroughAssemblyFrom: TyMaseRe: Superintendent’sReport–May2017

I.LakeandPeninsulaSchoolDistrict’sSubsistenceCalendar

“RespectingourRegion’sCultureandSubsistenceLifestyleWhileMeetingthe

UniqueNeedsofourDistrict”

TheSchoolTermandOurSubsistenceCalendar:TheCommissionerofeducationhasapprovedaplanforLPSDtogotoasubsistencecalendarbasedonthe900hoursofrequiredinstruction.Ourcurrentcalendar:170studentdaysmultipliedby6.5hoursminus52.5hours(min.days)=1,052.5hoursofinstructionaltimeOurnewsubsistencecalendar:150studentdaysmultipliedby6.5hours=975hoursofinstructionaltime(75morehoursthanthestateminimum)Whenallissaidanddonewewillbeomitting77.5hoursofinstructionfromourschoolyearWhatwillbedifferent:

SchoolswillnotstartuntilSeptember5 Fridayswillnolongerbeanearlyreleaseday SchoolwillbeoutonMay1 Therewillbealotofemphasisonstudentattendance Instructionaltimeintheclassroomwillneedtobeprotected

Whatyoucandotohelp:

Encourageyourkidstohavethebestattendancepossible Makesurehomeworkiscompleted EncourageALOTOFREADINGduringthesummermonths Documentwork,learningandculturalexperiencestomeetschoolstandards Preplanyourvacationsw/aneyeontheschoolcalendar TakepartinLSACmeetingsandgiveusfeedback


Volunteertohelpafterschoolandonweekendsasalotofstudentincentivesandactivitiesgetpushedoutoftheinstructionalday(movieincentives,parties,communitycleanups,etc.)

II.Worthybullet‐pointsfromourlastadminmeeting(thankstoNateDavis):

TheStateHouseisstickingwithFlatFunding.Senatestillat5%cut...wedon'tknowhowlongtheywilldebate.LPSDSchoolBoardpassedaFlatFundingbudget,sothatisthe$586K‐ishdeficit.

TheSchoolBoardpassedtheSubsistenceCalendarlastweekanditwassenttotheStatetoapprove.Thissaves$450‐$500Kandallowsustokeepmostofourprograms...however,

ExtraCurricularOutliers(Music,Wrestling,andTrack&Field)havebeencutbyLPSD,butlocalschoolscankeepthemrunningiftheycanfindthemoneylocally...

SmallteamXCrunningcoacheshavebeencut,butstudentswhopracticeduringPEcanstillgotoashortenedXCJamboree.

Clubshavebeencutsofar‐‐wewillhavetorelyonvolunteerstorunthosegreatprograms.

Pre‐school,FoodService,andTutorssurvivedthecutssofar.Somecutsmadetohostingstudentteachers.

5Additional5FlexDaysrequiredforteacherretirement.LPSDhopingtomakethoseasflexibleasTRSwillallow,butwestillhavetodosomeresearch.

TeachersaretoreportonsiteAug28foraWorkDay...thenAug29‐31willbeRemoteInservicesonline.Sep1isaWorkDay,thenLaborDayweekendandstudentsreportSept5.

Howcanwemakebetteruseoftheschoolday?Forexample,Ifweusedtodocommunityserviceduringschoolhours,movethisandotherextracurricularlearningexperiencestotheeveningsandweekends.

AskparentstouseAugust,December,May,andotherschoolbreaksfortheirplannedmedicalappointmentsandvacations.

Ifastudentishiredtoworkforthesummer,inmostcasestheyshouldbeabletomarkoffEmployabilitystandards.

Aswithmostmajordecisions,therewilllikelybesomeunintendedconsequencesfromtheSubsistenceCalendar...let'spreparetobeflexibleandtosolvetheproblemsasbestwecanwithacan‐doattitude.Ourkidsdeserveourbestandourbestattitudes...andtheworldwillbewatchingtoseeifwecankeepouracademictrackrecordwithashortenedschoolyear.

WECANDOTHIS!!


F.

Consent Agenda


LAKE AND PENINSULA BOROUGH RESOLUTION 17-10

A RESOLUTION EXPRESSING APPRECIATION TO THE CITY OF CHIGNIK FOR EXCEPTIONAL WORK AND IMPORTANT CONTRIBUTIONS TO THE CHIGNIK DOCK PROJECT.

WHEREAS, it took years to bring the Chignik Dock to realization and many of the people and efforts will forever be unheralded; however, Lake and Peninsula Borough would like to thank those of whom we are aware; and

WHEREAS, the City of Chignik was always the driving force behind the project; and

WHEREAS, the City of Chignik shepherded the project and devoted much money, time and energy to the project; and

WHEREAS, the Chignik Dock is now a reality; and

WHEREAS, the project will benefit not only the City of Chignik, but the entire region; and will support the Chignik fishing fleet, and

WHEREAS, the Chignik fishing fleet is important to the livelihood of many Borough citizens and to the Borough itself who receives fish tax revenue; and

WHEREAS, the Assembly recognizes that the project may never have been realized if it were not for the efforts and vision of the City of Chignik and Richard Sharpe.

NOW THEREFORE BE IT RESOLVED that the Lake and Peninsula Borough Assembly and staff wish to express its sincere thanks and appreciation to the City of Chignik for a job well done.

BE IT FURTHER RESOLVED that the Lake and Peninsula Borough Assembly and staff extends its best wishes to the City of Chignik for success and happiness.

PASSED AND APPROVED by a duly constituted quorum of the Lake and Peninsula Borough Assembly on the 16th day of May, 2017.

IN WITNESS THERETO:

Glen Alsworth Sr., Mayor

ATTEST:

Kate Conley, Borough Clerk



A RESOLUTION EXPRESSING APPRECIATION TO RICHARD SHARPE FOR HIS EXCEPTIONAL WORK AND IMPORTANT CONTRIBUTIONS TO THE CHIGNIK DOCK PROJECT.



WHEREAS, Dick Sharpe has been with the City of Chignik since 1991 and he has worked diligently on the dock for the City of Chignik; and




WHEREAS, the Assembly recognizes that the project may never have been realized if it were not for the efforts and vision of the City of Chignik and Richard Sharpe.

NOW THEREFORE BE IT RESOLVED that the Lake and Peninsula Borough Assembly and staff wish to express its sincere thanks and appreciation to Richard for a job well done.

BE IT FURTHER RESOLVED that the Lake and Peninsula Borough Assembly and staff extends its best wishes to the City of Chignik and to Richard for success and happiness.


IN WITNESS THERETO:


ATTEST:




A RESOLUTION EXPRESSING APPRECIATION TO ALOYS KOPUN FOR HIS EXCEPTIONAL WORK AND IMPORTANT CONTRIBUTIONS TO THE CHIGNIK DOCK PROJECT.



WHEREAS, Aloys Kopun has served his community as a city councilor and has worked diligently on the dock for the City of Chignik; and

WHEREAS, Aloys Kopun has been a strong local advocate for waterfront development; and




WHEREAS, the Assembly recognizes that the project may never have been realized if it were not for the efforts and vision of the City of Chignik and Aloys Kopun.

NOW THEREFORE BE IT RESOLVED that the Lake and Peninsula Borough Assembly and staff wish to express its sincere thanks and appreciation to Aloys for a job well done.

BE IT FURTHER RESOLVED that the Lake and Peninsula Borough Assembly and staff extends its best wishes to Aloys for success and happiness.


IN WITNESS THERETO:


ATTEST:




A RESOLUTION EXPRESSING APPRECIATION TO WALT WREDE FOR HIS EXCEPTIONAL WORK AND

IMPORTANT CONTRIBUTIONS TO THE CHIGNIK DOCK PROJECT. WHEREAS, it took years to bring the Chignik Dock to realization and many of the people and efforts will forever be unheralded; however, Lake and Peninsula Borough would like to thank those of whom we are aware; and WHEREAS, Walt Wrede was the Borough Manager from 1994 to 2008 and he worked diligently on the dock project; and WHEREAS, the Chignik Dock is now a reality; and WHEREAS, the project will benefit not only the City of Chignik, but the entire region; and will support the Chignik fishing fleet, and WHEREAS, the Chignik fishing fleet is important to the livelihood of many Borough citizens and to the Borough itself who receives fish tax revenue; and WHEREAS, the Assembly recognizes that the project may never have been realized if it were not for the efforts and vision of Walt Wrede. NOW THEREFORE BE IT RESOLVED that the Lake and Peninsula Borough Assembly and staff wish to express its sincere thanks and appreciation to Walt for a job well done. BE IT FURTHER RESOLVED that the Lake and Peninsula Borough Assembly and staff extends its best wishes to Walt for success and happiness. PASSED AND APPROVED by a duly constituted quorum of the Lake and Peninsula Borough Assembly on the 16th day of May, 2017. IN WITNESS THERETO: Glen Alsworth Sr., Mayor ATTEST: Kate Conley, Borough Clerk



A RESOLUTION EXPRESSING APPRECIATION TO JOHN LEVY FOR HIS EXCEPTIONAL WORK AND

IMPORTANT CONTRIBUTIONS TO THE CHIGNIK DOCK PROJECT. WHEREAS, it took years to bring the Chignik Dock to realization and many of the people and efforts will forever be unheralded; however, Lake and Peninsula Borough would like to thank those of whom we are aware; and WHEREAS, the City of Chignik was always the driving force behind the project; and WHEREAS, John Levy was one of the first city manager’s in Chignik and worked diligently on the dock for the City of Chignik; and WHEREAS, John Levy was instrumental in advancing local efforts to move the dock and boat harbor project forward; and WHEREAS, the Chignik Dock is now a reality; and WHEREAS, the project will benefit not only the City of Chignik, but the entire region; and will support the Chignik fishing fleet, and WHEREAS, the Chignik fishing fleet is important to the livelihood of many Borough citizens and to the Borough itself who receives fish tax revenue; and WHEREAS, the Assembly recognizes that the project may never have been realized if it were not for the efforts and vision of the City of Chignik and John Levy. NOW THEREFORE BE IT RESOLVED that the Lake and Peninsula Borough Assembly and staff wish to express its sincere thanks and appreciation to John for a job well done. BE IT FURTHER RESOLVED that the Lake and Peninsula Borough Assembly and staff extends its best wishes to John for success and happiness. PASSED AND APPROVED by a duly constituted quorum of the Lake and Peninsula Borough Assembly on the 16th day of May, 2017. IN WITNESS THERETO: Glen Alsworth Sr., Mayor ATTEST: Kate Conley, Borough Clerk


G. 1. Ne1N Business

Ordinance 17-11 FY18 Budget

Hearing & Decision


LAKE AND PENINSULA BOROUGH ORDINANCE NO. 17-11

AN ORDINANCE ADOPTING THE LAKE AND PENINSULA BOROUGH OPERATING BUDGET FOR THE FISCAL YEAR BEGINNING JULY 1, 2017 AND ENDING JUNE 30, 2018 (FY-18).

BE IT ENACTED by the Assembly of the Lake and Peninsula Borough that:

Section 1. Classification. This is a Non-Code Ordinance.

Section 2. General Provisions. The Lake and Peninsula Borough is authorized to receive revenues, make expenditures, and make changes in cash balances for the period beginning July 1, 2017 and ending June 30, 2018, in accordance with the “FY 17 BUDGET” in the amount of $3,821,169 attached hereto as “Exhibit A” and incorporated herein by reference.

Section 3. Authorization and Appropriation. The appropriations set forth in “Exhibit A” are adopted and authorized for the period beginning July 1, 2016 and ending June 30, 2017, and are the operating budget for that period.

The Manager is authorized to over expend or transfer funds between line items within functions or departments as needed provided that said transfers do not exceed 25% of the approved budget for that function or department. The manager is further authorized to exceed approved function or department budgets by up to 10% or a maximum of $10,000 to address unanticipated circumstances. In no case shall the manager expend more funds in a given fiscal year than the amount authorized for the overall Operating Budget unless approved by the Assembly. New expenditures for activities not authorized herein, transfers between functions or departments which exceed the above authorization, transfers between the General Fund and other funds, or any other modifications to the approved budget must be done by ordinance and the normal budget amendment process.

Section 4. Effective Date. This ordinance shall become effective upon enactment by the Borough Assembly.

ENACTED by a duly constituted quorum of the Lake and Peninsula Borough Assembly this 16th day of May, 2017.

IT WITNESS THERETO: ATTEST:

Glen Alsworth Sr., Mayor Kate Conley, Borough Clerk

Introduced: April 13, 2017 Public Hearing: May 16, 2017 Enacted: Ayes:Nays: Not Voting: Absent:


Exhibit A

Ordinance 17-11 re FY18 Budget page 2 of 5 May 16, 2017

PROPOSED LAKE AND PENINSULA BOROUGH FY 2018 BUDGET DETAIL

Raw Fish Tax 1,584,225$

Bed Tax 165,000

Federal PILT 239,600

Licenses & Permits 5,000

Professional Guides 55,000

Development Permits 1,000

Land Use Permits 1,000

Penalties & Interest 5,000

Teacher Housing Rents 330,000

Land Lease 70,000

Interest 35,000

Market Gain / Loss 35,000

Other Local Revenues 1,500

PILD 100,000

State Community Revenue Sharing 287,000

State fisheries Business Tax 28,000

SOA Shared Fish Tax 350,000

Electric & Telephone Coop 2,500

Total Revenue by Source 3,294,825$

REVENUE


Exhibit A


EXPENSE (cont.)

Assembly 2018

Health & Life Insurance 123,158$

Medicare Contribution 142

SBS Contribution 601

Communications ‐Telecom 540

Food 8,500

Transportation 55,000

Registration/Tuition 200

Stipends 10,000

Per Diem 13,000

Lodging 9,500

Dues & Fees 100

Total Assembly 220,741

Planning Commission

Medicare Contribution 51

SBS Contribution 215

Communications ‐Telecom ‐

Food 1,500


Stipends 3,500

Per Diem 4,500

Lodging 4,000

Total Planning Commision 18,765

EXPENSE


Exhibit A


EXPENSE (cont.)

Administration

Salaries 352,868

Health & Life Insurance 74,729

Medicare Contribution 5,117

PERS Retirement Contribution 13,278

SBS Contribution 3,700

PERS Salary Floor Contribution 37,000

Other Employee Benefits 2,500

Auditing & Accounting 25,000

Legal Services 15,000

Advertizing 500

Lobbyist 55,000

Technical Support 12,000

Consultants 55,300

Electricity 4,900

Water & Sewer 330

Communications ‐Telecom 9,500

Communications ‐ Internet 6,275

Rentals 2,448

Office Equipment 1,200

Site Repair & Maintenance 500

Insurance & Bond Premiums 25,250

Office Supplies 4,500

Computer Hardware/Software 4,500

Office Rental 3,400

Postage 5,600

Vehicle Expense 1,200


Registration/Tuition 2,000

Per Diem 4,500

Lodging 8,500

Dues & Fees 4,200

Bank Fees/Charges 5,000

Total Administration 775,795 Elections

Advertizing 400

Office Supplies 650

Food 150

Postage 500

Total Elections 1,700


Exhibit A


EXPENSE (cont.)

Economic Development ‐

Improvements Other than Buildings 5,000

Fisheries Advisor

Consultants 54,000

Board of Fish

Other Purchased Services 250

Rentals 500


Stipends 1,500

Per Diem 5,000

Lodging 7,550

Total Board of Fish 25,000

‐

Managers Contingency 10,000

Transfer to Wind Energy ‐

State Revenue Sharing 90,300

Borough Revenue Sharing 175,000

Shared Fisheries Business Tax 28,000

Other Financing & Uses

Transfer to Debt Service 498,600

Transfer to Permanent Fund 316,845

Transfer to Chignik Dock 100,000

Transfer to School District 1,347,423

Transfer to Vo‐Tech Program 54,000

Transfer to Pre‐School 100,000

Total Other Financing and Uses 2,416,868

Total Expense 3,821,169$

FY ‐ 18

Total of Revenue 3,294,825$

Total of Expenses 3,821,169

Surplus / (Deficit) (526,344)$


G. 2. New Business

Ordinance 17-12 Dock Operations

Introduction


This document will be available at the Assembly meeting


G. 3. New Business

Resolution 17-07 Revenue Sharing


Lake and Peninsula Borough page 1 of 1 May 16, 2017 Resolution 17-07


A RESOLUTION APPROVING CERTAIN UNINCORPORATED COMMUNITITES AND THEIR RESPECTIVE NATIVE VILLAGE COUNCIL AND/OR INCORPORATED NONPROFIT ENTITY FOR PARTICIPATION IN THE FY18 COMMUNITY ASSISTANCE PROGRAM WHEREAS, AS 29.60.865 and 3 AAC 180.070 require the assembly of a borough or unified municipality to adopt a resolution identifying those unincorporated communities located within their municipal boundaries that the assembly determines meet the Community Assistance Program eligibility criteria established under AS 29.60.865, AS 29.60.879, and 3 AAC 180.110; and WHEREAS, the unincorporated community has either a Native village council or incorporated nonprofit entity that will agree to receive and spend the Community Assistance payment for the public benefit of the unincorporated community; and WHEREAS, the unincorporated community has 25 or more residents residing as a social unit; and WHEREAS, at least three of the following services: fire protection, emergency medical, water and sewer, solid waste management, public road or ice road maintenance, public health, and search and rescue; are generally available to all residents of the unincorporated community and each of the three services, in any combination, are provided by one or more qualifying Native village council or incorporated nonprofit entity or are substantially paid for by the residents of the unincorporated community through taxes, charges, or assessments levied or authorized by the borough or unified municipality. NOW THEREFORE BE IT RESOLVED, that the Assembly of Lake and Peninsula Borough, by this resolution hereby certifies that the following unincorporated communities and their respective Native village council or incorporated nonprofit entity are eligible for funding under the FY18 Community Assistance Program:

Unincorporated Community Native village council or nonprofit entity Chignik Lagoon Chignik Lagoon Village Council Chignik Lake Chignik Lake Village Council Igiugig Igiugig Village Council Iliamna Iliamna Village Council Kokhanok Kokhanok Village Council Levelock Levelock Village Council Pedro Bay Pedro Bay Village Council Perryville Native Village of Perryville Port Alsworth Port Alsworth Improvement Corporation

PASSED AND APPROVED, by a duly constituted quorum of the Lake and Peninsula Borough Assembly this 16th day of May, 2017 IN WITNESS THERETO: ATTEST: ___________________________________ Glen Alsworth Sr., Mayor Kate Conley, Borough Clerk


G. 4. New Business

Resolution 17-08 LPSD Budget


Lake and Peninsula Borough May 16, 2017 Resolution 17-08


A RESOLUTION ACCEPTING AND APPROVING THE ANNUAL OPERATING BUDGET OF THE LAKE AND PENINSULA BOROUGH SCHOOL DISTRICT FOR THE FISCAL YEAR BEGINNING JULY 1, 2017 AND ENDING JUNE 30, 2018 (FY18), AND PROJECTING THE AMOUNT OF MONEY TO BE MADE AVAILABLE FROM BOROUGH REVENUES FOR SCHOOL PURPOSES DURING THAT FISCAL YEAR. WHEREAS, Article VIII, Section 8.03 of the Lake and Peninsula Borough Charter requires that the Lake and Peninsula Borough School District approve an annual budget and submit it to the Borough Assembly for final action, and WHEREAS, Section 14.14.060 (C) of the Alaska Statutes, provides that a school district within a borough shall submit the district budget for the following school year to the Borough Assembly by May 1 for approval of the total amount of budgeted revenues and expenditures, and WHEREAS, the Statutes provide further that, within 30 days after receipt of the budget, the Assembly shall determine the total amount of money to be made available from local sources for school purposes and shall furnish the School Board with a statement of the sum to be made available, and WHEREAS, the School District submitted its proposed annual budget to the Borough office on April 28, 2017 and the requested local contribution was reviewed and approved by the Borough Assembly on May 16, 2017. NOW THEREFORE BE IT RESOLVED, that the annual operating budget submitted by the School District for FY 2017 is hereby approved, and BE IT FURTHER RESOLVED, that the amount to be made available from the Lake and Peninsula Borough for school purposes in FY 2017 is $1,895,556.00, which shall be appropriated in the Borough’s annual Operating Budget to be adopted no later than June 1, 2017. PASSED AND APPROVED, by a duly constituted quorum of the Lake and Peninsula Borough Assembly this 16th day of May, 2017. IN WITNESS THERETO: Glen Alsworth Sr., Mayor ATTEST: Kate Conley, Borough Clerk


THE LAICE AND PENINSULA

SCHOOL DISTRICT 101 Jensen Drive

P.O. Box 498 King Salmon, Alaska 99613

Phone (907) 246-4280 / Fax (907) ~D~

April 27, 2017

Honorable Glen Alswmih, Mayor Lake and Peninsula Borough P.O. Box 495 King Salmon, Alaska 99613

Dear Mayor Alsworth;

246-4473

The Lake and Peninsula School Board approved/adopted a fiscal 2017-2018 school district revenue budget at the April 13, 2017 School Board meeting.

I am submitting two copies of the budget document for the May 2017 Assembly meeting for borough approval of the budgeted local revenue. Please sign both copies and retain one for your records and return one to me. The signed copy will be transmitted to State of Alaska Department of Education by July 15th or as soon as possible after approval.

The budgeted local revenue that the School District is requesting the Borough Assembly to approve is as follows:

Borough Appropriation District generated local revenue Total Local Revenue

1,347,423 548,133

1,895,556

If you need additional infonnation please feel free to contact me, as always thank you for your suppmi of education.

Sincerely,

Ty Mase Superintendent

Chignik Bay III Chignik Lagoon • Chignik Lake III Egegik• Igiugig III Ivan of Bay • Kokhanok III Levelock Newhalen

111 Nondalton • Pedro Bay III PenJ1vil!e III Pilot Point • Port Alsworth • Port Heiden Assembly Packet 98 of 134 May 16, 2017

Alaska Department of Education and Early Development - School Finance FY2018 School Operating Fund Budget

Signature Page

School District Name: Lake and Peninsula School District

Proj. District ADM: 328 brick & mortar ADM + correspondence ADM

Proj. Intensive count:

Prepared by: , Finance Director

Phone Number: (907) 246-4280 x6310

Approved by: Superintendent's Signature

Approval of City/Borough Official of Local Contribution designated on Page 3:

, Mayor Official Signature/Title

Form# 05-93-038 Alaska Department of Education & Early Development

7

L/, Z'6 - I 7 Date

Date

Page 1


Alaska Department of Education and Early Development - School Finance FY2018 School Operating Fund Budget Summary

Lake and Peninsula School District District Name

Beginning Fund Balance: July 1, 2017 (Subject to 10% Limit per AS 14.17.505(a))

(Excluded from the 10% Limit)

Total Beginning Fund Balance

Revenue

010 City/Borough Appropriations (1)

030 Earnings on Investments (2)

040 Other Local Revenues (3)

041 Tuition from Students (4)

042 Tuition - Other Districts (5)

047 E-Rate Program (6)

050 State Sources (7)

100 Federal Sources - Direct (8)

150 Federal Sources - Through the State (9)

190 Federal Sources - Other Agencies (10)

250 Transfers From Other Funds ( 11)

Total Revenue

Expenditures

100 Instruction (12)

200 Special Education Instruction (13)

220 Special Education Support Services (14)

300 Support Services - Students (15)

350 Support Services - Instruction (16)

400 School Administration (17)

450 School Administration Support Services (18)

510 District Administration (19)

550 District Administration Support Services (20)

600 Operations and Maintenance of Plant (21)

700 Student Activities (22)

780 Community Services (23)

900 Other Financing Uses (24) Total Expenditures

Ending Fund Balance: June 30, 2018 (Subject to 10% Limit per AS 14.17.505(a))

(Excluded from the 10% Limit)

Total Ending Fund Balance

$1,347,423

45,000

503,133

0

0

1,695,609

10,318,852

838,741

0

0

0

$5,005,939

1,153,405

145,715

204,316

3,073,152

715,386

54,614

696,579

554,610

2,417,538

413,959

0

340,000

$2,386,729

$1,389,783

$3,776,512

$14,748,758

$14,775,213

$2,360,274 **

$1,389,783

$3,750,057

Page 2

** Must be greater than or equal to zero

Form# 05-93-038

Alaska Department of Education & Early Development


Alaska Department of Education and Early Development - School Finance FY2018 School Operating Fund Budget Revenues


010 City/Borough Appropriations

011 City/Borough Direct Appropriation

012 City/Borough "In-Kind"

(detail descriptions & dollar amts required for in-kind)

In-Kind is a required code and must be presented separately

or budget will be returned.

Total City/Borough Appropriations

030 Earnings on Investments

030 Earnings on Investments Total Earnings on Investments

040 Other Local Revenues

040 Other Local Revenues - Identify:

(provide detail descriptions & dollar amts for local revenues)

Rents and Other

Total Other Local Revenues

041 Tuition from Students

041 Tuition from Students Total Tuition from Students

042 Tuition - Other Districts

042 Tuition Total Tuition - Other Districts

047 E-Rate Program

047 E-Rate Program Revenue

Total E-Rate Program

Fonn # 05-93-038


Amount

1,347,423

45,000

503,133

1,695,609

$1,347,423

Transferred to (1) on page 2

$45,000


$503,133


$0


$0


$1,695,609


Page 3


Alaska Department of Education and Early Development - School Finance FY2018 School Operating Fund Budget Revenues


050 State Sources (051 includes quality schools grants)

051 Foundation Program

055 Supplemental Aid

056 TRS On-Behalf Payments

057 PERS On-Behalf Payments

059 Tuition

090 Other State Revenues - Identify

BAG grant

Total State Sources

100 Federal Sources - Direct

110 Impact Aid (Public Law 874 (100%))

140 Other Federal Revenue - Identify

Total Federal Sources - Direct

150 Federal Sources - Through the State of Alaska - Identify:

Total Federal Sources - Through the State

190 Federal Sources - Other Agencies - Identify:

Total Federal Sources - Other Agencies

250 Transfers From Other Funds - Identify:

Total Transfers From Other Funds

Total Projected Revenues

Fonn # 05-93-038 Alaska Department of Education & Early Development

9,401,019

580,641

48,000

289,192

Amount

838,741

$10,318,852


$838,741


$0


$0


$0


$14,748,758

Page 4


Alaska Department of Education and Early Development - School Finance FY2018 School Operating Fund Budget Expenditures

Lake and Peninsula School District

District Name

Function 100 Instruction

Salaries

310 Certificated Salaries

320 Non-Certificated Salaries

Total Salaries

Employee Benefits

360 Employee Benefits

380 Housing Allowance/Subsidy

390 Transportation Allowance

Total Employee Benefits

Total Salaries & Employee Benefits

Non-Personnel

410 Professional and Technical Services

419 Chief Administrator Contract Services

420 Staff Travel

425 Student Travel

430 Utility Services

435 Energy

440 Other Purchased Services

445 Insurance and Bond Premiums

450 Supplies, Materials and Media

480 Tuition and Stipends

490 Other Expenses - Identify:

Dues & Fees

510 Equipment Total Non-Personnel

Total Salaries, Benefits, Non-Personnel

Amount

2,253,607

325,018

$2,578,625

1,521,414

315,000

25,900

$1,862,314

$4,440,939

6,000

10,000

124,000

139,600

283,400

2,000

$565,000

$5,005,939

Page 5

Personnel FTE

37.82


Fom1 # 05-93-038

Alaska Department of Education & Early Development Assembly Packet 103 of 134 May 16, 2017



District Name

Function 200 Special Education Instruction

Salaries



Total Salaries

Employee Benefits






Non-Personnel


420 Staff Travel

425 Student Travel


435 Energy









Amount

406,200

321,083

$727,283

361,222

42,000

2,800

$406,022

$1,133,305

15,000

5,100

$20,100

$1,153,405


Page 6

Personnel FTE

6.50

13.70


Alaska Department of Education and Early Development~ School Finance FY2018 School Operating Fund Budget Expenditures


Function 220 Special Education Support Services • Students

Salaries



Total Salaries

Employee Benefits






Non-Personnel



420 Staff Travel

425 Student Travel


435 Energy








Amount

$0

$0

$0

133,500

12,000

215

$145,715

$145,715

Page 7

Personnel FTE




Alaska Department of Education and Early Development a School Finance FY2018 School Operating Fund Budget Expenditures


Function 300 Support Services - Students

Salaries



Total Salaries

Employee Benefits






Non-Personnel


420 Staff Travel

425 Student Travel


435 Energy








Fonn # 05-93-038


Amount

102,480

$102,480

69,396

21,000

1,200

$91,596

$194,076

10,000

240

$10,240

$204,316


Page 8

Personnel FTE

1.60




Function 350 Support Services - Instruction

Salaries



Total Salaries

Employee Benefits






Non-Personnel


420 Staff Travel

425 Student Travel


435 Energy






Dues & Fees



Amount

433,147

157,900

$591,047

348,254

31,500

5,900

$385,654

$976,701

45,500

1,996,351

53,600

1,000

$2,096,451

$3,073,152

Page 9

Personnel FTE

5.25

3.09


Form# 05-93-038 Alaska Depaiiment of Education & Early Development




Function 400 School Administration

Salaries


Total Salaries

Employee Benefits






Non-Personnel



420 Staff Travel

425 Student Travel


435 Energy






Dues & Fees



Amount

403,090

$403,090

218,496

31,500

2,800

$252,796

$655,886

55,000

1,000

3,500

$59,500

$715,386

Page 10

Personnel FTE

4.90






Function 450 School Administration Support Services

Salaries


Total Salaries

Employee Benefits






Non-Personnel


420 Staff Travel

425 Student Travel


435 Energy








Amount

32,704

$32,704

17,025

$17,025

$49,729

3,885

1,000

$4,885

$54,614

Page 11

Personnel FTE

1.09


Form# 05-93-038

Alaska Department of Education & Early Development Assembly Packet 109 of 134 May 16, 2017



Function 510 District Administration

Salaries



Total Salaries

Employee Benefits






Non-Personnel



420 Staff Travel

425 Student Travel


435 Energy






Dues & Fees



Amount

256,880

$256,880

315,599

3,000

$318,599

$575,479

25,000

55,000

6,400

3,700

6,000

15,000

10,000

$121,100

$696,579

Page 12

Personnel FTE

2.00






District Name

Function 550 District Administration Support Services

Salaries



Total Salaries

Employee Benefits






Non-Personnel


420 Staff Travel

425 Student Travel


435 Energy






Dues & Fees

495 Indirect Costs



Fonn # 05-93-038


Amount

330,272

$330,272

167,338

3,500

$170,838

$501,110

27,000

10,000

1,900

10,000

30,000

6,000

10,000

(41,400)

$53,500

$554,610


Page 13

Personnel FTE

4.42




District Name

Function 600 Operations and Maintenance of Plant

Salaries



Total Salaries

Employee Benefits






Non-Personnel


420 Staff Travel

425 Student Travel


435 Energy








Amount

673,504

$673,504

302,834

3,000

$305,834

$979,338

42,000

130,000

80,000

790,000

6,900

170,000

219,300

$1,438,200

$2,417,538

Page 14

Personnel FTE

16.49


Fonn # 05-93-038





District Name

Function 700 Student Activities

Salaries



Total Salaries

Employee Benefits






Non-Personnel


420 Staff Travel

425 Student Travel


435 Energy






Dues & Fees



Form# 05-93-038


Amount

61,400

36,850

$98,250

54,309

$54,309

$152,559

4,500

252,000

2,000

2,900

$261,400

$413,959


Page 15

Personnel FTE

0.80

1.50




District Name

Function 780 Community Services

Salaries



Total Salaries

Employee Benefits






Non-Personnel


420 Staff Travel

425 Student Travel


435 Energy








Amount

$0

$0

$0

$0

$0

Page 16

Personnel FTE




Alaska Department of Education and Early Development - School Finance FY2018 School Operating Fund Budget Other Financing Uses


District Name

Function 900 Other Financing Uses

Transfers To:

550 Transfer to Other Funds

Fonn # 05-93-038

(Provide a detailed explanation for all transfers)

Food Service

Total Other Financing Uses


Amount

340,000

$340,000


Page 17


Alaska Department of Education and Early Development - School Finance FY2018 School Operating Fund Budget TRS/PERS Functional Breakdown

Page 18 Lake and Peninsula School District District Name

The department uses two required revenue object codes, 056 and 057, for the purpose of recording TRS and PERS on-behalf revenue. The full amount of the TRS and PERS on-behalf from all funds must be recorded in the operating fund. The district is to calculate the functional break-out in order to allocate the related on-behalf expenditure.

The district is to use the following allocation method for breaking out the TRS by function. 1) To calculate the TRS on-behalf amount take the difference between the Board Recommended Rate and the Effective Rate

and multiply the difference by the total district wide TRS payroll from all funds. You will now have the total dollar amount of the TRS on-behalf for all funds.

2) Divide the (total district wide TRS payroll by function from all funds) by the (total district wide TRS payroll from all funds) to derive a percentage of total district wide TRS payroll by function.

3) The total district wide TRS payroll by function percentage is multiplied by the total TRS on-behalf to come up with the total TRS on-behalf by function to be recorded in the operating fund.

The district is to use the same methodology for recording total PERS on-behalf. The TRS and PERS on-behalf allocations are to be recorded in the schedule below and also included in the employee benefits in each function. The total on-behalf employee benefits by function should reconcile to the total on-behalf revenues recorded from page 4.

Total On-Behalf Revenue from page 4

TRS

580,641

PERS

48,000

Function 100 On-Behalf Expenditures












Total On-Behalf Employee Benefits by Function

316,880

52,455

23,008

69,359

69,096

36,528

13,315

580,641

Note: TRS and PERS on-behalf for Pupil Transportation and Food Service should be included in function 300 and TRS and PERS on-behalf for Construction & Facilities Acquisition should be included in function 600.

Fonn # 05-93-038

Alaska Depatiment of Education & Early Development

6,534

3,567

5,588

5,967

725

276

8,115

17,034

194

48,000


G. 5. New Business

Resolution 17-09 Dock Fees


This document will be available at the Assembly meeting


H. 1. a. Old Business

Ordinance 17-07 Hotel-Motel Tax


Lake and Peninsula BoroughP.O. Box 495


Telephone: (907) 246-3421Fax: (907) 246-6602

Chignik Bay • Chignik Lagoon• Chignik Lake• Egegik • Igiugig• Iliamna • Ivanof Bay• Kokhanok• Levelock • Newhalen• Nondalton• Pedro Bay• Perryville• Pilot Point• Pope Vannoy• Port Alsworth• Port Heiden• Ugashik

Date: May 12, 2017



Re: Ordinance 17-07

Ordinance 17-07 was noticed and a public hearing held twice (January andFebruary). The ordinance that was noticed was significantly different from whatthe Assembly approved and adopted at the April meeting. For this reason, theadoption of Ordinance 17-07, as amended by the Assembly at the meeting, wasinvalid and I did not record the ordinance as adopted. You have the ordinancebefore you again as it was originally noticed.

If the Assembly chooses to amend the ordinance, depending on the changes, itmay need to be noticed again and a public hearing held.


-1-

MEMORANDUM

TO: Lake and Peninsula Borough Assembly

FROM: Michael McLaughlinGuess & Rudd P.C.

DATE: May 4, 2017

RE: Options for New Tax Revenue

I. Introduction.

We have been asked evaluate the following options for generating additional revenue thatthe Lake and Peninsula Borough (“Borough”) can consider, as well as the legalframework and risks of each of the options identified. The options addressed in thismemorandum are: (a) increase of the existing bed and guiding taxes, and (b) a newtourism and economic development excise tax. Each of the options is outlined andevaluated below.

II. Option Evaluation.

The Borough is a home-rule municipality under AS 29.04.010. As such, the Borough hasall legislative powers not prohibited by law or charter. Under AS 29.35.010(6), theBorough has the general power to “levy a tax or special assessment, and impose a lien forits enforcement.” This power is construed broadly and the courts are not quick to inferlimitation on the taxing authority of a Borough where none is expressed.1

A. Increase The Existing Bed Tax and/or Guide Fee.

The Borough has an existing hotel-motel bed tax under Borough Code Chapter 6.90 and apermit fee for lodge operators and guides under Chapter 6.50. The simplest method forgenerating additional revenue would be to simply increase the revenue generated by theseparticular taxes and fees. For the bed tax, the easiest way to do it would be to increasethe cap on the amount of the tax from the current $6.00 to $10.00 and increase the valueof the bed accordingly.

PROS: These taxes already exist and are well known and well-understoodby the populace and the business community in the Borough. Theguide fee could be increased with Assembly approval only and not

1 Alliance of Concerned Taxpayers, Inc. v. Kenai Peninsula Borough, 273 P.3d 1128 (Alaska 2012).


-2-

voter ratification. Similarly, it is likely that an increase to the perday cap (but not the rate) of the bed tax from $6.00 to $10.00, andthe commensurate increase in the bed value, could both be done byAssembly approval only and without voter ratification.

CONS: They may not increase revenue enough to make up the shortfall.Existing business owners subject to these taxes may be resistant tothe increase and seek to reduce or repeal them through a referendum.Increases to the hotel-motel bed tax rate (as opposed to raising onlythe cap and the bed value) would require voter ratification underAlaska Statute 29.45.670, which requires voter approval of increasesin sales tax rates.

B. Tourism and Economic Development Excise Tax.

Another option is to attempt to impose a tourism and economic development excise tax.Excise taxes are generally defined as “a tax on the enjoyment of a privilege or tax on themanufacture, sale or consumption of a commodity.”2 As envisioned, it would be payableas a result of entry into the Borough by a tourist using a tourism facility located in theBorough, even if the destination is a National Park, regardless of length of stay and notbased on ad valorem or a sale of services at all. It would be a flat rate of approximately$10 and would require it to be collected from visitors by whoever provides transportationor facilities, such as airlines, air taxis, lodges, guides, etc. The tax would be by the daythe person was present at a tourism facility. A “tourism facility” could be defined as (1)any hotel, motel, lodge, campground or other facility offering overnight accommodationsfor less than two weeks at a time, (2) any other location in the Borough to which a personis conveyed by a tourism operator for tourism purposes (and not involving an overnightstay in the Borough), including but not limited to parks and other public and privatelands. “Tourism purposes” could be defined as hunting, sport fishing, sight-seeing,photography, wildlife viewing and other recreational activity. A “tourism operator”could be defined as an owner or operator of a tourism facility or the owner or operator ofa business providing access to tourism facilities within the Borough.

While this would generate much of what is needed to cover the current revenue shortfall,there are some risks involved in using this approach. The biggest risks are constitutionalones. One issue has to do with burdens to interstate commerce under the so-called“dormant” commerce clause of the U.S. Constitution. The idea is that states (and byextension local governments) are limited in the tax burdens they may impose on interstatecommerce. Because most or at least a large percentage of the visitors to the Borougheach year are from out of state, an excise tax that falls disproportionately on out-of-statevisitors could potentially violate the dormant commerce clause.

2 Bragg v. Matanuska-Susitna Borough, 192 P.3d 982, 989 (Alaska 2008), quoting Blair Candy Co. v. Altoona AreaSchool District, 192 Pa. Commw. 420, 613 A.2d 159 (Pa. Commw. 1992).


-3-

At the level of only $10 per day, there is not much incentive for any particular taxpayer tocomplain about whatever the Borough does and certainly not enough to litigate about.However, to the extent that the tax or fee creates a new significant administrative burdento those who will be charged with collecting it, they may have enough incentive tochallenge the tax/fee. As a result, stakeholder engagement will be crucial.

PROS: It has the potential to almost completely fill the budget shortfall evenat a modest $10 level. Impact on residents would be minimal. Bycausing the tourism operators to collect the tax, additionaladministrative load on the Borough is minimized, except for trackingwho has paid and who has not. No voter ratification would berequired.

CONS: There is a risk of a dormant commerce clause or other legalchallenge by taxpayers or their transporters. Tracking who has paidcould be problematic.

III. CONCLUSION.

There is no easy answer to this situation. While increasing existing taxes and fees maybe easier than trying to add a new tax, changes to the bed tax and/or guide fee may notraise enough revenue to cover the existing shortfall. The main risk of a tourism andeconomic development excise tax is some potential for litigation.





Telephone: (907) 246-3421 Fax: (907) 246-6602

PLEASE POST

PUBLIC HEARING NOTICE

ORDINANCE NO. 17-07

An Ordinance Amending the Lake and Peninsula Borough Code, Chapter 6.90 Hotel-Motel Room Tax, and Providing for an Effective

Date. The Lake and Peninsula Borough Assembly will hold a public hearing to solicit comments on the above referenced ordinance on Tuesday, February 21, 2017 at 8:30 am in the meeting room at Lake and Peninsula School District, 101 Jensen Rd, King Salmon AK 99613. Interested members of the public are encouraged to attend. To participate you may submit written comments up to 24 hours prior to the hearing, or attend in person or call 1-866-339-5580 and enter the meeting number *2288317* (star, two, two, eight, eight, three, one, seven, star) during the hearing. Copies of the proposed ordinance can be viewed at local village and city council offices, or at the Lake and Peninsula Borough offices in King Salmon, Alaska. For information contact Kate Conley at 907-246-3421 or 1-800-764-3421. Note: Due to telephone service inconsistency inherent to rural Alaska, the Borough meeting may not always be available in all locations or audible.


Ordinance 17-07 page 1 of 2 January 17, 2017

Lake and Peninsula Borough Ordinance 17-07

An Ordinance Amending the Lake and Peninsula Borough Code, Chapter

6.90 Hotel-Motel Room Tax, and Providing for an Effective Date.

The Borough Assembly of Lake and Peninsula Borough finds and determines that:

1. The valuation of overnight lodging as part of a rent or tour package has not been updated for eight years,

2. The current valuation is below current rates that can be found in almost all other parts of the state,

3. The Federal Per Diem rate for over-night accommodations in $350 in

Dillingham, $225 in King Salmon, the Borough valuation of overnight accommodation is below current market valuation,

4. The refunding the registration fee does not serve a positive purpose for the

borough, is not an inducement for new business or in retaining current operators, and is at odds with all other licensing entities in the state and with the State itself,

5. Revenue from registration fees and would be better used to offset tax

administration costs, THEREFORE, BE IT ENACTED by the Assembly of the Lake and Peninsula Borough: Section 1. Classification This is a code ordinance Section 2. General Provisions A. In the Lake and Peninsula Borough Code the following from Section 6.90 is amended to read:

6.90.020 (B)(2)

2. The minimum amount of tax paid shall not be less than six thirteen and

50/100’s dollars ($6.00) ($13.50) per person, per night (room rental rate equivalent at 6% x $100.00 $225.00 = $6.00 $13.50 ). The tax remitted shall be either 6% of the amount apportioned to room rent, 6% of the established or published room rental rate if that rate is used as part of the package price, or the minimum rate described herein; whichever is greater. (Added by Ordinance 97-06, 11/18/97) (Amended by Ordinance 09-09; 11/14/09)

6.90.040 (A)


Ordinance 17-07 page 2 of 2 January 17, 2017

A. Every merchant shall file with the Borough an application for a certificate of registration on a form provided by the Borough not later than ten days after the date of commencing operation of an overnight accommodation or opening an additional place of business as an overnight accommodation. The application shall include at a minimum, the name and mailing address of the applicant, the location or locations at which the applicant will conduct business, the location at which transactions subject to this tax will occur, a statement certifying the owner of record of the overnight accommodation facility to be registered, a statement signed by the owner of the overnight accommodation acknowledging that he/she understands that the facility at which the taxes are generated is subject to tax lien in the event of tax delinquency, and other information with respect to description, location, and value of property owned by the merchant within borough boundaries which the manager may require in the best interest of the Borough. The completed application shall be accompanied by a check payable to the Borough for a twenty-five dollar ($25.00) annual Application Processing Fee and the merchant’s Accommodation Rate Schedule for the Application Year. After initial registration with the Borough, merchants shall submit a renewal form supplied by the Borough, the operator’s rate schedule, and the $25.00 registration fee. The application fee is non-refundable. The $25.00 application fee shall be applied to the Hotel/Motel tax remittances. (Amended by Ordinance 09-09, November 14, 2009; Ordinance 15-03, May 11, 2015)

Section 3. Effective Date This ordinance shall take effect immediately upon adoption , and shall apply all activities described in 6.90.020 (B)(2) effective January 1, 2018.

ENACTED by a duly constituted quorum of the Lake and Peninsula Borough Assembly this 24th day of March, 2017. IN WITNESS THERETO: Glen R. Alsworth, Sr., Mayor ATTEST: Kate Conley, Borough Clerk Introduced: November 14, 2016 Public Hearing: January 17, 2017, February 21, 2017 Enacted: Ayes: Nays: Not Voting: Absent:


N. 1. Information Letter from Rep Young


lake and peninsula borough p.o. box 495 king salmon ...€¦ · submitted by: brian hirsch,...

Documents