CALL TO ORDER

A Regular Meeting of the Kenai Peninsula Borough Assembly was held on January 6, 2004, 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 Phil Edgerly of Reflection Lake Chapel, Soldotna.

There were present:

Pete Sprague, Presiding

Dan Chay

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

Sherry Biggs, Deputy Borough Clerk

COMMITTEE REPORTS (7:03:24)

Assembly Member Long said the Committee discussed its agenda item and then addressed the state and federal priorities list for 2004. Mr. Long said several members of the assembly would be traveling to Juneau at the end of January to present the priority book to the Peninsula's legislators.

Assembly Member Martin said the Lands Committee addressed its brief agenda and heard a presentation from David Gibbs, OEM; Chief Tucker, CES; and Captain Bowman of the Alaska State Troopers on the proposed multi-use building for those agencies.

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

Assembly Member Glick reported the Policies and Procedures Committee met and discussed its agenda items.

(7:23:00)

President Sprague reported the Committee of the Whole met in executive session to discuss the legal issues relating to state funding of education.

APPROVAL OF AGENDA AND CONSENT AGENDA (7:23:50)

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

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

The following item was moved from the consent agenda to the regular agenda:

• �Resolution 2004-003: Authorizing the Planning of a New Multi-Use Building for 911 Dispatch, Central Emergency Services Administration, and the Borough Office of Emergency Management on Borough Property Located on Wilson Lane in Soldotna, Alaska (Mayor) (Referred to Lands Committee)

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

• �December 16, 2003 Regular Assembly Meeting Minutes

• �Resolution 2004-001: Award of a Contract for Professional and Design Services for the Environmental Protection Agency Arsenic Study and Compliance Project (Mayor) (Referred to Finance Committee)
 
• �Resolution 2004-002: Deleting a Lead Electronics Technician and Adding a Plumber/General Maintenance Mechanic in the Maintenance Department (Mayor) (Referred to Policies and Procedures Committee)

[Clerk's Note: The following technical amendment was made to Resolution 2004-002:

Final Whereas to read, "the lead electronics technician position is currently vacant and its workload can be handled by the remaining [ELECTRICIAN] electronics technician, other staff, and contractors;"]

• �Ordinance 2003-19-30: Appropriating $95,000 from Central Emergency Service Area (CES) Capital Projects Fund Balance for Completion of a New Well at Station #4 (Mayor) (Hearing on 02/03/04) (Referred to Finance Committee)
• �Ordinance 2003-19-31: Appropriating $596,836.53 from the Division of Emergency Services to Reimburse the Borough for Cost Incurred in Responding to Flooding Occurring from October 23, 2002 to November 12, 2002 (Mayor) (Hearing on 02/03/04) (Referred to Finance Committee)
• �Ordinance 2003-19-32: Accepting and Appropriating a Grant from the Alaska Division of Homeland Security and Emergency Management in the Amount of $19,000 for Developing Community Emergency Response Teams (Mayor) (Hearing on 02/03/04) (Referred to Finance Committee)
• �Ordinance 2003-19-33: Appropriating $49,900,000 for the Central Kenai Peninsula Hospital Service Area Expansion Project, with Funding Provided by Issuance of $49,900,000 in Central Kenai Peninsula Hospital Service Area General Obligation Bonds (Mayor) (Hearing on 02/03/04) (Referred to Finance Committee)
• �Ordinance 2004-01: Amending KPB Title 16 to Require Public notice of Vacancies on Service Area Boards Before Such Vacancies are Filled (Martin) (Hearing on 02/03/04) (Referred to Policies and Procedures Committee)
• �Petition to vacate a portion of Napakiak Street (name changed from Cedar Street by KPB SN Resolution 2003-2), adjacent to Lots 1, 2 & 3 Block 7 and Lots 3,4 & 5 Block 8 of Kasilof Townsite (USS 3564); within Section 30, Township 3 North, Range 11 West, Seward Meridian, Alaska; and within the Kenai Peninsula Borough; KPB File 2003-268 (Referred to Lands Committee)

[Clerk's Note: The Planning Commission approved the referenced vacation during its regularly scheduled December 8, 2003 meeting by unanimous consent with one abstention.]

• �Petition to vacate Little Flower Court, a 50-foot right-of-way, and associated utility easements dedicated by Lake View Terrace Amended (Plat KN 87-25), within Section 20, Township 5 North, Range 9 West, Seward Meridian, Alaska; and within the Kenai Peninsula Borough; KPB File 2003-255 (Referred to Lands Committee)

[Clerk's Note: The Planning Commission approved the referenced vacation during its regularly scheduled December 8, 2003 meeting by unanimous consent with one abstention.]

• �Petition to vacate a temporary cul-de-sac adjacent to Lot 8, dedicated by Trident Subdivision (Plat HM 76-69); within Section 35, Township 4 South, Range 15 West, Seward Meridian, Alaska; and within the Kenai Peninsula Borough; KPB File 2003-254; KPBPC Resolution 2003-51 (Referred to Lands Committee)

[Clerk's Note: The Planning Commission approved the referenced vacation during its regularly scheduled December 8, 2003 meeting by unanimous consent.]

President Sprague called for public comment on consent agenda items with none being offered.

AGENDAS APPROVED AS AMENDED: Unanimous.

COMMENDING RESOLUTIONS AND PROCLAMATIONS - None.

PRESENTATIONS WITH PRIOR NOTICE (7:30:25)

Jane Madison, 34435 Keystone Drive, Soldotna, AK, represented the grassroots effort to upgrade and pave Keystone Drive and encouraged the assembly to include their project in the 2004 State and Federal Priorities List.

Bill Popp, Revenue Development Committee Chair, Kenai Peninsula 2006 Arctic Winter Games Host Society, introduced John Hoyt, Wells Fargo Regional President, and Kathy Gensel, Vice President and Store Manger for Kenai/Soldotna. Ms. Gensel spoke of Wells Fargo's commitment to the community and presented a check for $100,000 for the Arctic Winter Games. Mr. Popp reported that Aspen Hotel had offered $100,000 in cash and in-kind services and ERA Aviation had also committed $100,000 in airfare and marketing support.

(7:41:30)

Ted Schiffman and Michael Sobocinski, Central Peninsula Counseling Services, provided an update on their program and planned expansion of services.

PUBLIC COMMENTS ON ITEMS NOT APPEARING ON THE AGENDA - None

REPORTS OF COMMISSIONS AND COUNCILS - None.

MAYOR'S REPORT (7:53:50

• Agreements and Contracts

• Contract for Appraisal Services by MacSwain Associates

• Contract with Wince, Corthrell, Bryson for development of a capital improvement project selection criteria for road projects

Mayor Bagley announced the borough was awarded the "Distinguished Budget Presentation Award" for the fiscal year beginning July 1, 2003 by the Government Finance Officers Association.

Assembly Member Glick asked Mayor Bagley for additional information on the LNG property which was being appraised. Mayor Bagley said he would get back to Ms. Glick with that answer.

Assembly Member Superman asked about the development of a capital improvement project selection criteria contract. Mayor Bagley said the intent was to develop a priority list for borough road projects, similar to the State's STIP list.

PUBLIC HEARINGS ON ORDINANCES

(7:57:22)

Ordinance 2003-45: Amending KPB Chapter 5.12 to Provide for a Flat Tax on Aircraft (Moss) (Second of Three Hearings) (Referred to Finance Committee)

[Clerk's Note: There was a motion to enact on the floor from the 12/16/03 meeting.]

Assembly Member Moss said a representative from the City of Kenai attended the Finance Committee meeting. Mr. Moss noted this ordinance affected borough taxation only, and the cities would not be affected.

President Sprague called for public comment with none being offered.

MOTION: Moss moved to amend Ordinance 2003-45 as follows:

Section 3 to read, "This ordinance be [RETROACTIVELY] effective as of January 1, 2005 [2004]."

MOTION TO AMEND PASSED: Without objection.

MOTION: Moss moved to postpone Ordinance 2003-45 to the next scheduled public hearing date of January 20, 2004.

MOTION TO POSTPONE PASSED: Unanimous.

(8:00:07)

Ordinance 2003-19-29: Appropriating Funds from the Equipment Replacement Fund to Purchase a New Folder/Stuffer Mailing System (Mayor) (Referred to Finance Committee)

MOTION: Moss moved to enact Ordinance 2003-19-29.

Assembly Member Moss said this ordinance would allow for the replacement of an aging piece of equipment in the mail room. A shortened hearing had been requested so the equipment could be in place for mailing the assessment notices at the end of February 2004.

President Sprague called for public comment with none being offered.

MOTION TO ENACT PASSED: Unanimous.

UNFINISHED BUSINESS (Postponed Items)

(8:02:00)

Resolution 2003-130 (Sprague and Glick) Substitute: Providing for Submission to the Voters in a Special Election a Proposition Authorizing the Borough to Directly Fund School District Cocurricular Activities in Addition to Operating Funds Currently Authorized by Law (Sprague, Glick) (Referred to Policies and Procedures Committee)

[Clerk's Note: There was a motion to adopt on the floor from the 12/16/03 meeting.]

Assembly Member Glick said the resolution was discussed at the Policies and Procedures Committee. Ms. Glick noted this resolution would not appropriate any funds, but would allow for the funding process, if approved by the voters.

President Sprague called for public comment.

The following people spoke in opposition to Resolution 2003-130:

Ruby Kime, PO Box 334, Ninilchik, AK

Dave Carey, PO Box 718, Soldotna, AK, suggested the area cost differential issues be pursued with the State. Mr. Carey also discussed the merits of establishing a cocurricular service area with an elected board.

Fred Sturman, PO Box 513, Soldotna, AK

The following people spoke in favor of Resolution 2003-130:

Jennie Hammond, PO Box 7100, Nikiski, AK

Nels Anderson, 303 Diane Lane, Soldotna, AK, spoke on behalf of the KPB School Board

Joe Arness, 260 S. Willow, Kenai, AK

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

MOTION: Glick moved to amend Resolution 2003-130 (Substitute) as follows:

Title to read, "Providing for Submission to the Voters in a Special By-Mail Election a Proposition Authorizing the Borough to Directly Fund School District Cocurricular Activities in Addition to Operating Funds Currently Authorized by Law"

VOTE ON MOTION TO AMEND:

Yes: Chay, Glick, Long, Martin, Merkes, Moss, Sprague

No: Fischer, Superman

Absent: None

VOTE ON MOTION TO AMEND: 7 Yes, 2 No, 0 Absent

Assembly Member Superman asked if the additional tax would be shown on assessment notices, just as the post-secondary tax was a specific line item. Mayor Bagley said unless this specific listing was called for by ordinance, it would be listed within the General Fund.

Assembly Member Martin asked for additional information on establishing a service area. Borough Attorney Colette Thompson stated that cocurricular funding could be accomplished through a service area, but the borough already had educational authority on an area-wide basis.

Assembly Member Long noted the Cocurricular Task Force had discussed many of these same issues.

Assembly Member Fischer asked if the additional $1.4 Million was for both Fiscal Year 2004 and 2005. President Sprague said the reference to 2004 provided a historical note only.

Assembly Member Glick noted that "cocurricurlar" was not limited to just sports, but included music, forensics, drama and debate.

Assembly Member Fischer stated the assembly was not required to seek voter approval on this issue. The assembly had the authority to increase the mill rate to cover this additional funding request.

Assembly Member Martin expressed her concern that the State was not funding education at adequate levels. Ms. Martin said the borough currently provided one-third of the school district's budget, with sales tax covering only one-half of that amount.

VOTE ON MOTION TO ADOPT AS AMENDED:

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

No: None

Absent: None

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

UNFINISHED BUSINESS (Notice to Reconsider) (8:55:20)

Resolution 2003-129: Requesting Amendment of Alaska Statues 31.05.125 and 38.05.177(O), Which Authorize the Department of Natural Resources Commissioner to Waive Compliance with Local Laws for Shallow Natural Gas Leases in Limited Cases, Requesting Additional Public Notice Requirements, and Requesting that the State Buy Back South Peninsula Shallow Gas Leases (Martin, Moss) (Referred to Legislative Committee) Reconsideration Given by Mr. Superman

MOTION: Superman moved to reconsider Resolution 2003-129.

Assembly Member Glick noted that Representative Seaton and Senator Stevens had introduced new legislation regarding shallow well leases in the South Peninsula, and this new information warranted reconsideration of the assembly's ordinance.

Assembly Member Chay expressed his concern over the possibility of a veto by the mayor.

Assembly Member Superman said with the advent of Representative Seaton's proposed legislation, the assembly should consider this as new evidence and encouraged reconsideration of Resolution 2003-129.

Assembly Member Long noted corrections to the proposed legislation were sent by Senator Stevens.

Assembly Member Martin spoke in opposition to the reconsideration of Resolution 2003-129.

VOTE ON MOTION TO RECONSIDER:

Yes: Glick, Fischer, Merkes, Superman

No: Chay, Long, Martin, Moss, Sprague

Absent: None

MOTION TO RECONSIDER FAILED: 4 Yes, 5 No, 0 Absent

NEW BUSINESS (9:15:30)

Resolution 2004-003: Authorizing the Planning of a New Multi-Use Building for 911 Dispatch, Central Emergency Services Administration, and the Borough Office of Emergency Management on Borough Property Located on Wilson Lane in Soldotna, Alaska (Mayor) (Referred to Lands Committee)

MOTION: Martin moved to adopt Resolution 2004-003.

President Sprague called for public comment.

The following person spoke in opposition to Resolution 2004-003:

Fred Sturman, PO Box 513, Soldotna, AK

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

Assembly Member Martin requested a brief presentation from the local emergency response representatives in the audience.

Chief Jeff Tucker, Central Emergency Services (CES), explained the history and the need for a new station for CES. He also noted that there was currently no space available for an emergency operations center and the Alaska State Troopers needed a new dispatch center.

David Gibbs, KPB Emergency Management Coordinator, suggested that a shared facility would allow the borough and the state to take advantage of certain economies of scale.

Captain Tom Bowman, Alaska State Troopers, said their current dispatch facility did not meet building and safety code standards.

Chief Tucker said the existing CES facility also did not meet current fire codes and the building was utilized beyond its capacity.

MOTION TO ADOPT PASSED: Unanimous.

PUBLIC COMMENTS AND PUBLIC PRESENTATIONS (9:40:40)

Fred Sturman, PO Box 513, Soldotna, AK, expressed his disappointment with the assembly's previous action on the letter urging the governor and legislature to develop a comprehensive long-range fiscal plan for the State.

(9:44:36)

ASSEMBLY MEETING AND HEARING ANNOUNCEMENTS

• The next meeting of the Kenai Peninsula Borough Assembly was scheduled for January 20, 2004, at 7:00 p.m. in the Assembly Chambers, Borough Administration Building, Soldotna, Alaska.

ASSEMBLY COMMENTS (9:44:50)

Assembly Member Chay said he struggled over the reconsideration issue. Mr. Chay encouraged members of the public to visit his website at www.kenai-peninsula.org.

Assembly Member Superman stated that adoption of Resolution 2003-129 sent a message that the borough did not want to explore the availability of resources on the Southern Peninsula. The amendments proposed at the last meeting would have addressed the need for additional public process. Mr. Superman said this had become an emotional issue but noted there had been several other emotional issues, such as gaming and smoking. Assembly Member Superman said there were numerous subsidies occurring from one end of the peninsula to the other. Mr. Superman recognized that people and communities would always have differences, but he encouraged everyone to come together and consider the borough as a whole. Mr. Superman also stressed that the State should be funding education at equitable levels.

Assembly Member Merkes agreed the State should adequately fund education but also agreed that additional funding for cocurricular activities should be addressed by the voters. Ms. Merkes said there was a town meeting scheduled to discuss the Sterling Community Draft Plan on January 14, 2003, at 7:00 p.m. at the Sterling Senior Center.

Assembly Member Moss acknowledged the differences between the Southern Peninsula and the rest of the borough. Mr. Moss encouraged everyone to become involved in the issues and find out why residents felt a certain way so that an understanding could be reached.

Assembly Member Martin noted there was a lack of communication between the north and south peninsula. Ms. Martin said residents of the Southern Peninsula did look at Kachemak Bay a little differently. Assembly Member Martin said the Southern Peninsula residents wanted the State to provide additional public hearings as had been done for Talkeetna. Ms. Martin did not feel that every area of the borough had to develop in the same manner.

Assembly Member Long noted there had been high and low points during the day. Mr. Long encouraged his fellow assembly members to stick to the issues and rationally discuss points of view. Assembly Member Long said it did no good to polarize issues.

Assembly President Sprague thanked everyone for their dialogue and debate.

ADJOURNMENT (10:02:06)

With no further business to come before the assembly, President Sprague adjourned the meeting at 10:02 p.m.

I certify the above represents accurate minutes of the Kenai Peninsula Borough Assembly meeting of January 6, 2004.

Approved by Assembly: