CALL TO ORDER

A Regular Meeting of the Kenai Peninsula Borough Assembly was held on April 15, 2003, in the Assembly Chambers, Borough Administration Building, Soldotna, Alaska. President Sprague called the meeting to order at 7:00 p.m.

PLEDGE OF ALLEGIANCE AND INVOCATION

The Pledge of Allegiance was recited followed by the invocation given by Pastor Bruce Hardesty of the Church of the Nazarene in Soldotna.

There were present:

Pete Sprague, Presiding

John Davis

Paul Fischer

Betty Glick

Ron Long

Milli Martin

Grace Merkes

Chris Moss

Gary Superman comprising a quorum of the assembly.

Also in attendance were:

Dale Bagley, Borough Mayor

Colette Thompson, Borough Attorney

Linda Murphy, Borough Clerk

Johni Blankenship, Administrative Assistant

COMMITTEE REPORTS (Tape 1, 120)

Assembly Member Moss reported the Finance Committee met and discussed its agenda items.

Assembly Member Martin said the Lands Committee addressed its brief agenda.

Assembly Member Glick reported the Policies and Procedures Committee met and discussed its agenda items. The Committee also met in executive session to discuss the borough clerk's annual evaluation.

Assembly Member Long said the Legislative Committee heard from members of the Peninsula Legislative Delegation via teleconference on current bills before the State Legislature. The committee also discussed hiring a lobbyist to work in Juneau on behalf of borough education funding.

MOTION: Long moved to transfer $10,000 from the Assembly Contingency Account No. 100.11110.00000.49999 to the Assembly Contract Services Account No. 100.11110.00000.43011 and to authorize the execution of a contract with Ed McLain to provide lobbying services for education issues in Juneau through the end of the 2003 legislative session.

Assembly Member Long encouraged the Assembly to support the motion, indicating the importance of utilizing all resources available to the borough in order to support borough education.

Assembly Member Fischer spoke against the motion. He stated the borough was already a member of the Alaska Municipal League and it was AML's duty to lobby on behalf of its members.

Assembly Member Merkes spoke against the motion.

Assembly Member Martin spoke in favor of the motion. She stated the Alaska Municipal League was in a position to lobby for its members, however, she believed AML's strength was on statewide issues. She noted the borough had a unique position with respect to the state's funding formula.

Assembly Member Glick spoke against the motion. She stated the borough's elected officials were in a better position to lobby on behalf of the borough. She said it had been her experience that the legislature preferred to work with and hear from the borough's elected officials rather than a lobbyist.

Assembly Member Long addressed the concerns raised by some of the assembly members. He also noted that some assembly members would be traveling to Juneau next week for AML Conference; however, he further noted that every other community in the State would have elected officials traveling to Juneau at that time. He restated the need for a contact in Juneau.

Assembly Member Superman spoke against the motion. He stated he did not agree with the position held by Mr. Long. He did not belief the legislature would be acting on the education formula this session and he thought hiring a lobbyist would be a waste of money at this late date. He noted a better alternative for future funding of education may be to find a new source of revenue (example: State Lottery).

Assembly Member Moss that it would be in the best interest of the borough to spend the money for the lobbyist in the off chance that it would benefit the school district.

MOTION: Fischer moved to table the motion.

VOTE ON MOTION TO TABLE:

Yes: Superman, Merkes, Glick, Fischer, Davis

No: Long, Martin, Sprague, Moss

Absent: None

MOTION TO TABLE PASSED: 5 Yes, 4 No, 0 Absent

APPROVAL OF AGENDA AND CONSENT AGENDA (Tape 1, 1353)

MOTION TO APPROVE AGENDAS: Glick moved for approval of the agenda and consent agenda.

President Sprague called for additions, corrections or deletions to the agenda or consent agenda.

The following items were added to the regular agenda:

A Resolution Commending the Kenai Peninsula Hockey Association's Ice Hawk Pee Wee Tier III Hockey Team as 2003 Tier III Alaska State Champions (Sprague)

The following items were moved from the consent agenda to the regular agenda:

Resolution 2003-043: Establishing Kenai Peninsula Borough Policy with Respect to Federal Anti-Terrorism Acts, Legislation and Orders (Glick) (Referred to Policies and Procedures Committee)

Copies having been made available to the public, Borough Clerk Linda Murphy noted by title only the resolutions and ordinances on the consent agenda.

April 1, 2003 regular assembly meeting minutes

Resolution 2003-039: Authorizing Transfer of $17,500 in Available Funds from the Non-Departmental Appropriation for Contract Services to the Non-Departmental Appropriation for the Kenai Peninsula Tourism Marketing Council (KPTMC) (Mayor) (Referred to Finance Committee)

Resolution 2003-042: Providing for the Issuance and Sale of General Obligation Bonds of the Kenai Peninsula Borough in the Aggregate Principal Amount of Not to Exceed $7,040,000 to Pay the Costs of Solid Waste Improvements in the Borough, Fixing Certain Details of Such Bonds, and Pledging the Full Faith and Credit of the Borough to the Payment Thereof (Mayor) (Referred to Finance Committee)

Ordinance 2003-15: Amending KPB Chapter 4.30, Candidate Qualifications, to Provide Required Forms in a Timely Manner (Sprague at request of Borough Clerk) (Hearing on 05/20/03) (Referred to Policies and Procedures Committee)

President Sprague called for public comment with none being offered.

AGENDAS APPROVED AS AMENDED: Unanimous without objection.

COMMENDING RESOLUTIONS AND PROCLAMATIONS (Tape 1, 1535)

Assembly Member Superman presented a commending resolution to the Nikiski High School girls basketball team in recognition of their 2003 Class 3A state championship.

Assembly Member Fischer commended the Ninilchik High School girls basketball team as District III/2A state champions.

Assembly Member Sprague commended the Kenai Peninsula Hockey Association Tier III Pee Wee team as the 2003 Tier III Alaska State Champions.

PUBLIC COMMENTS AND PRESENTATIONS (Tape 1, 2028)

Alison Simpson, Rachel Beatty, Stevie Pyfer, Jamie Miller and Matthew Smith, students from Skyview High School, presented "Protecting the Integrity of the Kenai Estuary Flats and Developing Low Impact Tourism."

Tom Boedeker, Board Member representing Central Peninsula General Hospital Inc., presented a quarterly report for the period ending March 31, 2003.

REPORTS OF COMMISSIONS AND COUNCILS

MAYOR'S REPORT (Tape 2, 27)

Mayor Bagley announced the signing ceremony for the Arctic Winter Games was scheduled for Wednesday, April 16, 2003, at 1:30 pm at the Kenai Central High School Auditorium and encouraged everyone to attend.

Agreements and Contracts

Contract with Cooper and Company for surveying and plat of Merrywood Avenue

Contract with McLane Consulting Group for survey and platting services

Other

Revenue Expenditure Report - March 2003

Capital Projects Progress Report - March 2003

PUBLIC HEARINGS ON ORDINANCES

(Tape 2, 65)

Ordinance 2002-19-38: Redirecting $1,487,299 of Previously Appropriated Bond Proceeds from the 2000 General Obligation School Bonds and Appropriating $403,175 of Interest Income to Fund School Capital Improvement Projects (Mayor) (Referred to Finance Committee)

MOTION: Moss moved to enact Ordinance 2002-19-38.

Assembly Member Moss gave a brief committee report on Ordinance 2002-19-38. He indicated the bonds had been approved in 2000 by the public and the ordinance was a redirection of the unused bond proceeds and earned interest income.

President Sprague called for public comment with none being offered

MOTION: Moss moved to amend Ordinance 2002-19-38 as follows:

Replace the existing Section 2. with the following:

SECTION 2.That $1,890,474 in bond proceeds is appropriated to the following projects accounts:

Soldotna Middle School Classroom Renovations         $1,165,474             Account No. 401.76030.00SMS.49999

Nanwalek Roof/Drainage Improvements     $325,000           Account No. 401.71030.00NAN.49999

Skyview High School Water Tankage          $75,000            Account No. 401.71180.00WTR.49999

Ninilchik Pool Repairs           $200,000              Account No. 401.71100.00NPO.49999

Sears Elem. Fire Alarm System                $ 125,000             401.73040.00SFA.49999.

MOTION TO AMEND PASSED: Unanimous without objection.

VOTE ON MOTION TO ENACT AS AMENDED:

Yes: Superman, Moss, Sprague, Merkes, Martin, Long, Glick, Fischer, Davis

No: None

Absent: None

MOTION TO ENACTED AS AMENDED

PASSED: 9 Yes, 0 No, 0 Absent

(Tape 2, 204)

Ordinance 2003-09: Authorizing the Lease of 54 Acres + Located Within the Buffer Property of the Central Peninsula Landfill to Kenai Peninsula Archers at Less than Market Value (Mayor) (Referred to Lands Committee)

MOTION: Martin moved to enact Ordinance 2003-09.

Assembly Member Martin gave a committee report on Ordinance 2003-09. She stated the Kenai Peninsula Archers had operated the range on the landfill buffer property for approximately 10 years as authorized by Ordinance 92-33. She stated the lease expired in November 30, 2002 and renewal of the lease was not possible because a portion of the lease area was now designated by the Solid Waste department as Central Peninsula landfill area. She also noted that the 55 acres the Kenai Peninsula Archers proposing to lease was all within the landfill buffer. She reported the Planning Commission had recommended enactment, with proposed amendments, at its March 24, 2003 meeting.

President Sprague called for public comment.

The following people spoke in favor of Ordinance 2003-09:

Steve Latz, 525 Shane Court, Kenai, AK

Emily Kennedy (minor), Junior Olympic Archery Development Team member

There being no one else who wished to speak, the public comment period was closed.

MOTION: Martin moved to amend Ordinance 2003-09 as follows:

Insert in Section 1. E. The public will be aware of the lease through publication of the Kenai Peninsula Borough Planning Commission and Assembly agendas.

Insert Section 2. C. The remainder of the parcel leased by the Kenai Peninsula Archers is required by the landfill and no longer available for lease.

Insert a new Section 3 to read, "That the assembly finds that an "other than fair market value" lease meets the criteria of KPB 17.10.120 (D) as set forth in the findings of fact in Section 1 of this ordinance. This offer for negotiated lease shall remain open for a period of 90 days after adoption."

And to renumber the remaining sections accordingly.

MOTION TO AMEND PASSED: Unanimous without objection.

MOTION: Martin moved to amend Ordinance 2003-09 as follows: complete the final Whereas to read, "the KPB Planning Commission at its regularly scheduled meeting of March 10, 2003 recommended enactment of the ordinance by unanimous consent with the recommended amendments;

MOTION TO AMEND PASSED: Unanimous without objection.

VOTE ON MOTION TO ENACT AS AMENDED:

Yes: Superman, Moss, Sprague, Merkes, Martin, Long, Glick, Fischer, Davis

No: None

Absent: None

MOTION TO ENACT AS AMENDED PASSED: 9 Yes, 0 No, 0 Absent

(Tape 2, 535)

Ordinance 2003-10: Amending KPB Chapter 5.28 to Clarify the Appeal Process for Procurement and Purchasing Actions (Mayor) (Referred to Policies and Procedures Committee)

MOTION: Glick moved to enact Ordinance 2003-10.

Assembly Member Glick gave a committee report on Ordinance 2003-10. She stated the ordinance clarified some of the vague areas of the appeal process. She stated the ordinance better defined the time line of appeals.

President Sprague called for public comment with none being offered.

Assembly President Sprague asked Assembly Member Glick for insight regarding Section 1. A. (the three business day time frame). Assembly Member Glick stated the question had not been discussed in committee. Ms. Thompson noted the time period was adopted from other municipal codes and would allow any appeals to be dealt with expeditiously.

Assembly President Sprague asked Ms. Thompson for clarification of Section 1., Item I. (Quasi Judicial Process). He asked whether it prohibited the Assembly members from discussing the any bidding or procurement process. She replied that it would be best for Assembly members to refer any questions regarding the bidding process to the administration. She added that general procedural questions could be answered by Assembly members.

VOTE ON MOTION TO ENACT:

Yes: Superman, Moss, Sprague, Merkes, Martin, Long, Glick, Fischer, Davis

No: None

Absent: None

MOTION TO ENACT PASSED: 9 Yes, 0 No, 0 Absent

(Tape 2, 730)

Ordinance 2003-12: Providing for Submission to the Qualified Voters of the South Kenai Peninsula Hospital Service Area the Question of Authorizing the Expenditure of Seventeen Million Dollars ($17,000,000) to Pay the Costs of Hospital Capital Improvements, and the Issuance of up to Ten Million Five Hundred Thousand Dollars ($10,500,000) of General Obligation Bonds to Partially Fund the Improvements, at a Special Election in and for the South Kenai Peninsula Hospital Service Area on July 1, 2003 (Mayor at the request of the South Peninsula Hospital) (Referred to Policies and Procedures Committee)

MOTION: Glick moved to enact Ordinance 2003-12.

Assembly Member Glick gave a brief committee report on Ordinance 2003-12. She stated that the funding question raised at the last meeting had been answered by Charles Franz, David Green and Jeff Sinz to the committee's satisfaction.

President Sprague opened the public comment period.

The following people spoke in favor of Ordinance 2003-09:

David Green, 37140 Maria Road, Homer, AK, South Kenai Peninsula Hospital Service Area Board Chair.

Charlie Franz, 63460 Whispering Meadows Avenue, Homer, AK, South Peninsula Hospital Chief Executive Officer.

Assembly Member Long asked Mr. Green to reiterate the reason for using a mail out ballot versus waiting for the regular election. Mr. Green stated the board agreed that a mail out ballot had a better opportunity of reaching the voters. He added that waiting until the October election could delay the project for one year.

Assembly Member Martin asked Mr. Green to relate the funding sources for the project. Mr. Green stated that funds would be coming from the following sources: bond funds, retained earnings and future earnings of the hospital.

The following person spoke in opposition to Ordinance 2003-12:

Ruby Kime, Alice Avenue, Ninilchik, AK

There being no one else who wished to speak, the public comment period was closed.

Assembly Member Davis asked why the mill rate or maximum mill rate was not included in the ballot language. Ms. Thompson noted that the Alaska State Statues required the insertion of the dollar amount of proposed tax in the ballot language.

Assembly Member Moss spoke in support of the by-mail election.

Borough Clerk Linda Murphy gave a time line for the by-mail ballot election and indicated the ballot proposition summary would be included with each ballot. She gave a brief overview of the by-mail election procedures and identified options available to the public for voting.

[Clerk's Note: A technical amendment was made in Section 4. inserting Ordinance No. 2003-12.]

VOTE ON MOTION TO ENACT:

Yes: Superman, Moss, Sprague, Merkes, Martin, Long, Glick, Fischer, Davis

No: None

Absent: None

MOTION TO ENACT PASSED: 9 Yes, 0 No, 0 Absent

(Tape 2, 1140)

NEW BUSINESS

Resolution 2003-041: Establishing an Additional Major Capital Projects Administrator Position in the Capital Projects Department (Mayor) (Referred to Policies and Procedures Committee)

MOTION: Glick moved to adopt Resolution 2003-041.

Assembly Member Glick gave a brief committee report on Resolution 2003-041.

President Sprague called for public comment with none being offered.

MOTION: Glick moved to replace the existing Section 2 with the following:

SECTION 2. That it is anticipated that the project administrator will be needed for a period of two years with time dedicated solely to solid waste capital projects. The position will be deleted when projects are completed and appropriated monies are spent.

VOTE ON MOTION TO AMEND:

Yes: Glick, Long, Martin, Merkes, Sprague, Davis

No: Moss, Fischer, Superman

Absent: None

MOTION TO AMEND PASSED: 6 Yes, 3 No, 0 Absent

VOTE ON MOTION TO ADOPT AS AMENDED:

Yes: Superman, Moss, Sprague, Merkes, Martin, Long, Glick, Fischer, Davis

No: None

Absent: None

MOTION TO ADOPT AS AMENDED PASSED: 9 Yes, 0 No, 0 Absent

(Tape 2, 3000)

Resolution 2003-043: Establishing Kenai Peninsula Borough Policy with Respect to Federal Anti-Terrorism Acts, Legislation and Orders (Glick) (Referred to Policies and Procedures Committee)

MOTION: Glick moved to adopt Resolution 2003-043.

Assembly Member Glick noted that the Policies and Procedures committee did not have an opportunity to discuss Resolution 2003-043.

President Sprague opened the public comment period.

The following people spoke in support of Resolution 2003-043:

James Price, P.O. Box 7043, Nikiski, AK

Vicki Pate, PO Box 7447, Nikiski, AK

Ruby Kime, Alice Avenue, Ninilchik, AK

There being no one else who wished to speak, the public comment period was closed.

MOTION: Long moved to postpone Resolution 2003-043 to the 05/20/03 meeting and to schedule an additional public hearing on 05/06/03.

VOTE ON MOTION TO POSTPONE:

Yes: Superman, Moss, Sprague, Merkes, Martin, Long, Glick, Fischer

No: Davis

Absent: None

MOTION TO POSTPONE PASSED: 8 Yes, 1 No, 0 Absent

(Tape 3, 200)

Resolution 2003-044: Authorizing the Kenai Peninsula Borough to Enter into a Contract with the Arctic Winter Games International Committee to Conduct the 2006 Arctic Winter Games in the Kenai Peninsula Borough (Mayor) (Referred to Policies and Procedures Committee)

MOTION: Glick moved to adopt Resolution 2003-044.

Assembly Member Glick gave a brief committee report on Resolution 2003-044.

MOTION: Glick moved to postpone Resolution 2003-044 until the 05/20/03 regular meeting.

VOTE ON MOTION TO POSTPONE:

Yes: Superman, Moss, Sprague, Merkes, Martin, Long, Glick, Fischer

No: None

Absent: None

MOTION TO POSTPONE PASSED: 9 Yes, 0 No, 0 Absent

PUBLIC COMMENTS AND PUBLIC PRESENTATIONS - None.

ASSEMBLY MEETING AND HEARING ANNOUNCEMENTS (Tape 3, 480)