NORTHWEST ARCTIC BOROUGH
BUDGET, AUDIT, FINANCE COMMITTEE
Meeting Minutes for November 24, 2003

CALL TO ORDER
B.A.F. Chairperson Suzy Erlich called the meeting to order at 1:09 P.M. on November 3, 2003 in the Assembly Chambers, Kotzebue, Alaska.

INVOCATION/MOMENT OF SILENCE
A moment of silence was observed.

ROLL CALL
Members present at the time of roll call: John Schaeffer Reggie Cleveland Willie Thomas Roger Clark Suzy Erlich A quorum was present to conduct business. Introduction of staff & guests: Helena Hildreth Cindy Cooper Mayor Roswell Schaeffer Judy Hassinger (telephonically) Martha Whiting

AGENDA APPROVAL
Mayor Ross Schaeffer recommended adding Resolution 03-46 to Item G, Resolutions.

ENACTMENT OF ORDINANCES
Ordinance 03-06am 02: An ordinance of the Northwest Arctic Borough Assembly providing for the establishment and adoption of the line item budget amendment for the fiscal year 2004. Ms. Hassinger highlighted the changes in the Narrative that supports the proposed amendment to the second reading of the budget. Ms. Hassinger reported in the General Fund revenue a $553,000 increase, which reflects the amendment to the Cominco pilot agreement, totaling $6,403,000. The total increase in the General Fund Expenditures is $696,722, with the majority of that amount being the increase in the Cominco contract of $553,000, which is required by ordinance to be put in the Financial Contingency Reserve. An increase in Salaries and Benefits in the amount of $59,936 for a Special Assistant to the Mayor to perform grant writing and Environmental work; a decrease of $35,000 in the Consultants line item for Lori Henry to be transferred to the Summit Fund; a decrease in Miscellaneous of $5,000 which is base on projections for the remaining fiscal year. Chairperson Erlich asked Mayor Ross Schaeffer if the Special Assistant to the Mayor was a continuing contract and Mayor Schaeffer reported that he plans to have her as an employee.

Ms. Hassinger continued with the Administration and Finance Department reported an increase in the Noatak Revenue Sharing in the amount of $38,786, which was a pass portion through of the Borough's Temporary Relief Revenue. A decrease was reported in Equipment of $5,000 based on projections for the remaining year.

Ms. Hassinger reported a change in Planning and Community under Enforcement of Ordinance 03-05 has been decreased by $20,000 which is not expected to be expended this fiscal year because the season is already over. Printing and Publications has been decreased by $5,000 in Economic Development Commission based on projections for the remaining fiscal year. Public Safety Equipment has been increased by $10,000 for the purchase of fire extinguishers in the Public Services Department for the borough residents. The final change was made in the Operating Transfers to Other Funds in the amount of $35,000 related to Lori Henry's contract, which would be transferred to the Economic Development Summit. In addition, the Financial Contingency Reserve appropriation increased in the Teck Cominco Agreement of $553,000 is based on Ordinance 00-13. Kotzebue School complex was budgeted for $70,000 to move the Kotzebue school out buildings from the area of the new construction and that this cost has been approved by the State Department of Education and would be reimbursed. Finally, Ms. Hassinger commented that based on the reductions and increases in the proposed budget amendment, $73,722 is proposed to be used from undesignated, unreserved funds to balance the budget.

Mr. Roger Clark asked when the fire extinguishers would be available to the villages and Mayor Ross Schaeffer reported that Mr. Bolen was hoping that he would acquire these soon after the appropriation.

The BAF Committee made a recommendation to the full Assembly for passage of Ordinance 03-06am02.

Ordinance 03-09: An ordinance of the Northwest Arctic Borough Assembly establishing policies for review and approval of external, public financing of Economic Development and for related purposes.

Mayor Ross Schaeffer reported that the changes were underlined to set policy on any economic policy in the region and he referred to the 3rd whereas, 6th whereas, and the last change was on Item E on page three.

President Willie Thomas asked why Homeland of the Northwest Arctic Borough was inserted to the 4th whereas. Mayor Ross Schaeffer stated that he and Cindy Cooper would work on it a little more before the Regular meeting to make the changes.

The BAF Committee made a recommendation to the full Assembly for passage of Ordinance 03-09.

INTRODUCTION OF ORDINANCES
Ordinance 03-10: An ordinance of the Northwest Arctic Borough Assembly revising provisions related to the Frank R. Ferguson Scholarship Program.

Mayor Ross Schaeffer reported this ordinance reflects the title change to Frank R. Ferguson Memorial Scholarship, Section 2a reflects the amount not to exceed $750 per semester, $500 per quarter for full time students nor exceed $350 per semester nor exceed $200 per quarter for a part time student; Section 260.030 5) reflects requirements of in addition of vocational/technical fields 6) other justifiable area; Item B delete from grades to college and reflect to change to official transcripts from high school or accredited vocational or technical school; Item D be residents of the Northwest Arctic Borough at the time of high school graduation or an entry into a scholarship program; reflect to change Item E. 1) college or university program twelve or more credit hours from a freshman to a junior full time status, nine or more credit hours from a senior or graduate full time status or twelve or less credit hours from freshman to a junior part time status, nine or less credit hours from a senior or graduate part time status; Section 2 to reflect change Chukchi Campus enrollment - part time student carry three or more credit hours per quarter or semester that leads to a degree or certification; Section 3 reflect to change Alaska Technical school enrollment fulltime or part time student enrolled in a certification program and/or Alaska Technical Center who are applying for university credit hours for the ATC coursework, fees required by Chukchi campus or for vocational/technical school or institute program part time or full time status; reflect to change Item F complete a budget forecast for a school or technical institution where a student is attending; reflect to change Item G attendance that the student has been accepted at an academic or vocational/technical school. Section 260.50 reflect to change a scholarship committee will consist of a president of the Assembly, Superintendent of the Northwest Arctic Borough School, mayor or his designated alternates, a representative from the native village of Kotzebue and a representative from the Native of Kotzebue and a representative from the organization should be designated responsible for administering the scholarship program if the borough if not administering the program directly. Lastly, the mayor his designee will serve as the head for community formation and business activities. The committee will twice annually to make awards in a timely manner.

Mayor Ross Schaeffer stated that by the second reading he would be working on making this ordinance a little simpler.

Mr. John Schaeffer asked why three letters of recommendation were needed and Mayor Ross Schaeffer stated that the purpose for it was to show that the person has a history of being active in the school, a good employee, an excellent student and one who has the initiative to go beyond high school.

Mr. John Schaeffer stated that statistics show that none of these requirements have anything to do with who graduates from college and feels that these kinds of things make it harder for our kids to obtain funding. Mayor Ross Schaeffer believes that through these letters of recommendation we get an understanding of the students qualities for possibly succeeding in college. Mayor Ro ss Schaeffer also believes that the letters also gives us an idea if a student would be dependable during college.

Chair Suzy Erlich agreed and stated that she supports the letters of recommendation because they show initiative and that it introduces the person and provides a better picture of that student.

The BAF Committee made a recommendation to the full Assembly for passage of Ordinance 03-10 for first reading. Ordinance 03-11: An ordinance of the Northwest Arctic Borough Assembly establishing fire response service areas for the Fire Department functions and for related purposes. Mayor Ross Schaeffer reported that the identification for each village was included on the second page. The BAF Committee made a recommendation to the full Assembly for passage of Ordinance 03-11 for first reading.

RESOLUTIONS
Resolution 03-47: A resolution of the Northwest Arctic Borough Assembly accepting the General Purpose Financial Statements for the year ending June 30, 2003.

Ms. Judy Hassinger reported that this is the standard procedure for the Assembly to accept the audit report for the Fiscal Year ended June 30, 2003 and the plan is to have a representative from the auditing firm to present the audit report during the work session. Chair Suzy Erlich asked if the members have a copy of the audit report and Ms. Hassinger stated that they didn't have one yet but they would be presented with a draft GASBE 34 financial statement, because their national office was not done reviewing it.

Ms. Erlich felt hesitant to have this resolution considered by the assembly until a final document is received. Mr. Thomas reported that he feels the same way.

The BAF Committee made a recommendation to table Resolution 03-47 by the full assembly until the Assembly receives the audit report.

AUDIENCE COMMENTS
Mayor Ross Schaeffer reported that he took a pain killer during lunch and didn't wake up till someone knocked on his door and that was the reason why he was tardy.

COMMITTEE COMMENTS
Mr. Willie Thomas recommended that procurement code ordinance be referenced on the new credit card agreement.

ADJOURNMENT
With no other business to discuss, the meeting adjourned at 1:43 P.M.

B.A.F. Committee Meeting
ASSEMBLY CHAMBERS
KOTZEBUE, AK December 15, 2003 - 1:00 P.M.

AGENDA

A. CALL TO ORDER

B. INVOCATION / MOMENT OF SILENCE

C. ROLL CALL
1. Introduction of Staff & Guests

D. AGENDA APPROVAL

E. ENACTMENT OF ORDINANCES
1. Ordinance 03-10 An ordinance of the Northwest Arctic Borough Assembly revising provisions related to the Frank R. Ferguson Scholarship Program.
2. Ordinance 03-11 An ordinance of the Northwest Arctic Borough Assembly establishing fire response service areas for the Fire Department functions and for related purposes.

D. INTRODUCTION OF ORDINANCE G. RESOLUTIONS
Resolution 03-47 a Resolution of the Northwest Arctic Borough Assembly accepting the General Purpose Financial Statements for the year ending June 30, 2003.

Resolution 03-48 a resolution of the Northwest Arctic Borough Assembly authorizing the mayor to take measures to amend the memorandum of agreement between the Northwest Arctic Borough, the City of Kivalina, the Kivalina IRA, and the U.S. Army Corps of Engineers, Alaska district dated June 29, 1999 in order to extend the agreement from a five year term to a seven year term and for related purposes.

H. AUDIENCE COMMENTS

I. COMMITTEE COMMENTS

J. ADJOURNMENT