CALL TO ORDER

A Regular Meeting of the Kenai Peninsula Borough Assembly was held on January 20, 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 Dan Thornton, Peninsula Grace Brethren Church, 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 (7:03:03)

Assembly Member Long said the Legislative Committee discussed its agenda items and then addressed the state and federal priority lists for 2004. The Committee also discussed Senate Bill 227 and House Bill 322 which would delete the requirement that municipalities conduct special elections for initiatives and referenda.

MOTION: Long moved to authorize travel to Washington, D.C. for Assembly Members Sprague, Superman, Glick, Long and Merkes to attend the National Association of Counties (NACo) Annual Legislative Conference and to present the Federal Priorities Book to the Peninsula's Congressional Delegation.

MOTION PASSED: Unanimous.

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.

MOTION: Glick moved to approve the appointment of Assembly Member Chay to serve as the assembly's observer in the labor negotiation proceedings for a new collective bargaining agreement with the Kenai Borough Employees Association.

MOTION PASSED: Unanimous.

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

APPROVAL OF AGENDA AND CONSENT AGENDA (7:24:25)

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The following item was withdrawn at the request of the sponsor:

• Resolution 2004-007: Supporting the Central Peninsula Counseling Services' Concept of Building a Residential Treatment Center for Adolescents (Glick) (Referred to Policies and Procedures Committee)

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

• Resolution 2004-005: Transferring the Nikiski Elementary School Building to the Borough and Granting Management Authority of the Facility to the North Peninsula Recreation Service Area (Mayor, Superman) (Referred to Policies and Procedures Committee)
• Approving the Proposition Summary for the March 30, 2004 Special By-Mail Election (Referred to Policies and Procedures 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.

• January 6, 2004 Regular Assembly Meeting Minutes

• Resolution 2004-004: Approving Labor Negotiation Procedures for a New Collective Bargaining Agreement (Mayor) (Referred to Policies and Procedures Committee)
• Resolution 2004-008: Supporting the Passage of Senate Bill 247, Which Amends the Natural Gas Development Authority Act of 2002 (Mayor) (Referred to Legislative Committee)
• Ordinance 2004-02: Amending KPB 4.10.120 to Authorize the Purchase of Certain Election Materials Without Obtaining Competitive Bids (Sprague at the request of the Borough Clerk) (Referred to Finance Committee)
• Ordinance 2003-19-34: Authorizing a $50,000 Intergovernmental Loan for Appropriating Funds to the Seward-Bear Creek Flood Service Area to Provide Start-Up Funding to Begin Studies Necessary to Prepare the Development Plan (Long) (Hearing on 02/17/04) (Referred to Finance Committee)
• Ordinance 2003-19-35: Authorizing the Acquisition of 12 Acres from Carol and Frank Griswold for a New Seward Middle School and Appropriating $346,500 to Acquire the Property (Mayor) (Shortened Hearing on 02/03/04) (Referred to Lands Committee)

[Clerk's Note: With no objection, a shortened hearing date of February 3, 2004 was scheduled for Ordinance 2003-19-35, due to construction timelines.]

• Ordinance 2003-19-36: Appropriating $55,000 to the Assembly Elections Budget to Cover Anticipated Costs of the March 30, 2004 Special By-Mail Election and Authorizing the Purchase of Attendant Election Supplies, Materials and Services without Obtaining Competitive Bids (Sprague at the request of the Borough Clerk) (Shortened Hearing on 02/03/04) (Referred to Finance Committee)

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 (7:29:58)

Lisa Parker, PO Box 575, Kenai, AK, Marketing Director for Agrium-US, introduced Bill Boycott, General Manager for Agrium-Kenai Nitrogen Operations. Mr. Boycott said Agrium was committed to the Kenai Peninsula and intended to continue its strong operation in Alaska.

Tom Boedeker, Central Peninsula General Hospital Board Member, provided a quarterly update on hospital activities for the reporting period of October 1 to December 31, 2003. Mr. Boedeker introduced new CPGH board members Shirley Gifford and Alyson Stogsdill.

PUBLIC COMMENTS ON ITEMS NOT APPEARING ON THE AGENDA - None

REPORTS OF COMMISSIONS AND COUNCILS - None.

MAYOR'S REPORT (8:04:40)

• Spruce Bark Beetle Mitigation Program:

• Approval of contract with Mullikin Surveys for VIP Subdivision #2 Surveying Project
• Approval of contract with Mullikin Surveys for Johnson Lake #1 Surveying Project
• Approval of contract with K&C Silviculture for delivery of Lutz Spruce Seedlings
• Approval to enter into intergovernmental contract with State of Alaska, Division of Forestry for funding assistance for the DOF Stewardship Program

Approval of sole source contract with Frontier Business Systems for purchase of two printers for mail/copy center

Memorandum of Agreement between KPB and Tsalteshi Trails Association for Proposed Trail Expansion and Designated School Land

Other

Budget Revision and Expenditure Report - December 2003

Capital Projects Report - December 31, 2003

Investment Portfolio Report - December 31, 2003

Assembly members had several questions for Finance Director Holt on the borough's investment portfolio. Mr. Holt said he would provide answers to these questions before the next meeting.

PUBLIC HEARINGS ON ORDINANCES

(8:10:11)

Ordinance 2003-45: Amending KPB Chapter 5.12 to Provide for a Flat Tax on Aircraft (Moss) (Final Hearing) (Referred to Finance Committee)

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

President Sprague called for public comment.

The following people spoke in opposition to Ordinance 2003-45:

Steve Vollersten, 49635 Bishop Drive, Homer, AK

Terry Moxey, PO Box 621, Sterling, AK

Tim Smith, PO Box 185, Sterling, AK

The following people spoke in favor of Ordinance 2003-45:

Dan Michaels, PO Box 872729, Wasilla, AK

Howard Reed, 3520 FAA Road, Homer, AK

Bill Baechler, 295 E. Fairview, Homer, AK

Gary Porter, PO Box 3134, Homer, AK

George Mandes, 41145 Rucksack Drive, Homer, AK

Claire McCann, PO Box 4103, Homer, AK, owner of Smokey Bay Air

Tom Morell, (sp) PO Box 904, Homer, AK

Charlene Martin, 41145 Rucksack Drive, Homer, AK

read a letter from Mark O. Johnson, AvAlaska, Inc., 4340 Postmark Drive, Anchorage, AK

Charlie Parsons, PO Box 3339, Homer, AK

Jim Duncan, 36701 Maria Road, Homer, AK

James McGlock, (sp) PO Box 2764, Soldotna, AK

Gary Hebert, 45621 King Drive, Soldotna, AK

Scott Bremer, PO Box 2491, Kenai, AK

Ruby Kime, Alice Avenue, Ninilchik, AK

Doug Brewer, PO Box 8553, Nikiski, AK

Kathy Wittington, PO Box 2491, Kenai, AK

The following people were against levying any taxes on aircraft:

Fred Sturman, PO Box 513, Soldotna, AK

Dan France, 39550 Forest Lane, Soldotna, AK

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

(9:31:30)

MOTION: Moss moved to add additional public hearing dates for Ordinance 2003-45 on March 16 and April 6, 2004 and to postpone until the next hearing on March 16, 2004.

MOTION TO POSTPONE PASSED: Unanimous.

NEW BUSINESS (9:38:20)

Resolution 2004-005: Transferring the Nikiski Elementary School Building to the Borough and Granting Management Authority of the Facility to the North Peninsula Recreation Service Area (Mayor, Superman) (Referred to Policies and Procedures Committee)

MOTION: Glick moved to adopt Resolution 2004-005.

President Sprague opened and closed the public comment period with none being offered.

MOTION: Glick moved to amend Resolution 2004-005 as follows:

Third Whereas to read, "at its meeting of January 12, 2004, the Kenai Peninsula Borough Planning Commission recommended adoption by unanimous consent; and"

MOTION TO AMEND PASSED: Without objection.

Assembly Member Fischer was concerned with the possible expenses that might be incurred if the district needed the building in the future for school use.

MOTION TO ADOPT AS AMENDED PASSED: Unanimous.

(9:56:05)

Resolution 2004-006: Opposing Senate Joint Resolution (SJR) 18 Which Seeks to Establish a Percent of Market Value (POMV) Spending Program for the Permanent Fund (Glick) (Referred to Legislative Committee)

MOTION: Long moved to adopt Resolution 2004-006.

President Sprague called for public comment.

The following people spoke in favor of Resolution 2004-006:

Jerry Ward, 37836 Eagleson Avenue, Sterling, AK

Ruby Kime, Alice Avenue, Ninilchik, AK

Mark Osterman, PO Box 1027, Kasilof, AK

Fred Sturman, PO Box 513, Soldotna, AK

James Price, 49185 Island Lake Road, Nikiski, AK

Vicki Pate, PO Box 7447, Nikiski, AK

The following person spoke in opposition to Resolution 2004-006:

Tony Doyle, Box 2554, Soldotna, AK

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

Assembly Member Long asked if Resolution 2004-006 referred to SJR 18 or the Committee Substitute for Senate Joint Resolution 18. Ms. Glick said Resolution 2004-006 referred to the Substitute.

Assembly Member Superman spoke of the history of the permanent fund. Mr. Superman was uncomfortable with the concept of POMV.

Assembly Member Fischer spoke in favor of Resolution 2004-006 and noted that Section 1 asked for amendments to SJR 18.

MOTION: Fischer moved to extend the legislative deadline by one half hour to Midnight.

MOTION PASSED: Unanimous.

Assembly Member Moss spoke in opposition to Resolution 2004-006.

Assembly Member Martin felt Resolution 2004-006 was premature.

MOTION: Merkes moved to amend Resolution 2004-006 as follows:

Section 1 to read, "...There must also be provisions that will protect against inflated valuations of Permanent Fund assets and assure inflation-proofing of principal and there must also be a vote of the people to cap government spending."

Assembly Member Long spoke in opposition to the amendment.

VOTE ON MOTION TO AMEND:

Yes: Fischer, Glick, Merkes, Superman

No: Chay, Long, Martin, Moss, Sprague

Absent: None

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

MOTION: Glick moved to amend Resolution 2004-006 as follows:

Title to read, "A Resolution in Opposition to Senate Joint Resolution (SJR) 18 and House Joint Resolution (HJR) 26 Which Seek[S] to Establish a Percent of Market Value (POMV) Spending Program for the Permanent Fund"

Third Whereas to read, "SJR 18 and HJR 26 propose[S] constitutional changes..."

Eighth Whereas to read, "SJR 18 and HJR 26 propose[S] no real benefit to the Kenai Peninsula Borough..."

Section 1 to read, "That the Borough opposes SJR 18 and HJR 26 unless amended..."

MOTION TO AMEND PASSED: Without objection.

MOTION: Chay moved to postpone Resolution 2004-006 until February 17, 2004.

VOTE ON MOTION TO POSTPONE:

Yes: Chay, Glick, Long, Merkes

No: Fischer, Martin, Moss, Superman, Sprague

Absent: None

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

VOTE ON MOTION TO ADOPT AS AMEND:

Yes: Fischer, Glick, Superman, Sprague

No: Chay, Long, Martin, Merkes, Moss

MOTION TO ADOPT AS AMENDED FAILED: 4 Yes, 5 No, 0 Absent

(11:37:45)

Resolution 2004-009: Establishing Capital Projects Priorities for the Year 2004 (Legislative Committee) (Referred to Legislative Committee)

MOTION: Long moved to adopt Resolution 2004-009.

President Sprague called for public comment with none being offered.

MOTION: Long moved to amend Resolution 2004-009 as follows:

Section 1 to read, "That the borough priorities for capital projects for the year 2004, as shown in the document entitled "Kenai Peninsula Borough State Funding Priorities 2004 [2004 FUNDING PRIORITIES]" on file in the Clerk's Office, are hereby adopted."

MOTION PASSED: Without objection.

MOTION TO ADOPT AS AMENDED PASSED: Unanimous. (11:39:20)

Resolution 2004-010: Supporting and Recognizing the Significance of Coastal Planning and Supporting the Roles of the Kenai Peninsula Borough Coastal District and the Alaska Coastal District Association in the Alaska Coastal Management Program (Sprague, Martin) (Referred to Legislative Committee)

MOTION: Long moved to adopt Resolution 2004-010.

President Sprague called for public comment with none being offered.

MOTION TO ADOPT PASSED: Unanimous.

(11:41:29)

Request for Formal Assembly Objection to the Continuance of the Following Liquor License for a Second Year Because of Unpaid Taxes Due the Borough: [Note: Licenses are issued for a 2-year period. These were originally approved in 2003 for 2003 & 2004.] (Referred to Finance Committee)

Business Name License Location

Kenai Joe's Bar Kenai, Alaska

Northern Latitude Seward, Alaska

Millie's Moose River Inn Sterling, Alaska

Good Time Charlies Soldotna, Alaska

[Clerk's Note: The Finance Department withdrew its objection regarding Millie's Moose River Inn as the establishment had paid its tax delinquencies.]

MOTION: Moss moved to formally object to the continued operation of the licenses listed below:

Kenai Joe's Bar

Northern Latitude

Good Time Charlies

President Sprague called for public comment with none being offered.

MOTION TO ISSUE OBJECTION PASSED: Unanimous.

(11:43:15)

Approving the Proposition Summary for the March 30, 2004 Special By-Mail Election (Referred to Policies and Procedures Committee)

MOTION: Glick moved to approve the proposition summary as presented.

President Sprague called for public comment.

Ruby Kime, Alice Avenue, Ninilchik, AK , suggested the language should refer to Fiscal Year 2005.

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

MOTION: Long moved to postpone action on the proposition summary until the February 3, 2004 meeting, as amendments were anticipated.

MOTION PASSED: Unanimous.

PUBLIC COMMENTS AND PUBLIC PRESENTATIONS - None. (11:54.19)

ASSEMBLY MEETING AND HEARING ANNOUNCEMENTS

ASSEMBLY COMMENTS (11:54:40)

Assembly Member Fischer reminded everyone of the upcoming Peninsula Winter Games.

Assembly Members Superman, Glick and Martin requested excused absences from the February 3, 2004 meeting. President Sprague granted those requests.

Assembly Member Merkes announced the Sterling Community Plan had been approved.

Assembly Member Long said the Seward Polar Bear Jump Off raised $100,000 for the American Cancer Society.

Assembly President Sprague thanked the audience for their participation and testimony at the meeting.

ADJOURNMENT (11:57:29)

With no further business to come before the assembly, President Sprague adjourned the meeting at 11:57 p.m.

I certify the above represents accurate minutes of the Kenai Peninsula Borough Assembly meeting of January 20, 2004.

Approved by Assembly: