CALL TO ORDER

A Regular Meeting of the Kenai Peninsula Borough Assembly was held on February 3, 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 Keith Randall, Peninsula Grace Brethren Church, Soldotna.

There were present:

Pete Sprague, Presiding

Dan Chay

Paul Fischer

Ron Long

Grace Merkes

Chris Moss

comprising a quorum of the assembly.

Absent:

Betty Glick (excused)

Milli Martin (excused)

Gary Superman (excused)

Also in attendance were:

Dale Bagley, Borough Mayor

Colette Thompson, Borough Attorney

Linda Murphy, Borough Clerk

Sherry Biggs, Deputy Borough Clerk

COMMITTEE REPORTS (7:02:00)

Assembly Member Moss reported the Finance Committee met and discussed its agenda items. The Committee heard a presentation from Alaska Permanent Capital on the Borough's investment portfolio performance.

Assembly Member Merkes said the Lands Committee addressed its agenda items.

Assembly Member Long reported the Policies and Procedures Committee met and discussed its brief agenda.

Assembly Member Long said the Legislative Committee discussed its agenda items and the 2004 federal legislative priorities. Mr. Long said a work session was scheduled for February 17, 2004 at 10:00 a.m. to continue work on the road priorities.

President Sprague reported on the joint budget work session with the school board held earlier in the day.

APPROVAL OF AGENDA AND CONSENT AGENDA (7:15:20)

MOTION TO APPROVE AGENDAS: Moss 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 2004-011: Authorizing Award of a Contract for Professional and Design Services for the Central Peninsula General Hospital Expansion, Remodel and Renovation (Mayor) (Referred to Finance 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 20, 2004 Regular Assembly Meeting Minutes
• Expansion, Remodel and Renovation (Mayor) (Referred to Finance Committee)
• Resolution 2004-012: Authorizing the Transfer of $8,000 from the Road Service Area Capital Project Fund to Cover Additional Costs Incurred on the Edgington Road Improvement Project (Mayor) (Referred to Finance Committee)
• Resolution 2004-013: Authorizing the Negotiation of a Long-Term Property Lease and the Construction of Two Teacherage Housing Units on Village Property by the Native Village of Tyonek in Tyonek, Alaska (Mayor) (Referred to Lands Committee)
• Resolution 2004-014: Authorizing Transfer of Funds from the Completed Sears Elementary Fire Alarm Project to the Skyview High School Tankage Project (Mayor) (Referred to Finance Committee)
• Resolution 2004-016: Accepting a $45,000 Grant from the Alaska Department of Military and Veterans Affairs, Division of Homeland Security and Emergency Management for Emergency Management Operations (Mayor) (Referred to Finance Committee)
• Ordinance 2004-03: Authorizing the Sale of Approximately 0.25 Acres of Land to Herman and Irene Fandel to Resolve a Long Standing Trespass on Borough Land Located within the City of Kenai (Mayor) (Hearing on 03/16/04) (Referred to Lands Committee)
• Petition to vacate a portion of Sara Street (and associated 50-foot radius temporary turnaround) Dedicated by Roberts Subdivision (Plat KN 75-134); within Section 18, Township 5 North, Range 8 West, Seward Meridian, Alaska; and within the Kenai Peninsula Borough; KPB File 2004-003 (Referred to Lands Committee)

[Clerk's Note: The Planning Commission approved the above referenced vacation subject to staff's recommendations during its regularly scheduled January 12, 2004 meeting. Staff recommended approval based on the 12 findings subject to submittal of a preliminary plat in accordance with Chapter 20 of the Code (submittal of a final plat within one year of vacation approval.]

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 - None.

PUBLIC COMMENTS ON ITEMS NOT APPEARING ON THE AGENDA - None

REPORTS OF COMMISSIONS AND COUNCILS - None.

MAYOR'S REPORT (7:19:33)

• Agreements and Contracts

• Spruce Bark Beetle Mitigation Program:

• Approval of contract with Integrity Surveys for VIP Subdivision #1 Surveying Project
• Approval of contract with Kenai Peninsula Stump Maker for Cohoe Loop #2 ROW Project
• Approval of contract with Twin Rocks Enterprises, Inc. for Cohoe Loop #1 ROW Project
• Approval of Cooperative Agreement between KPB and State of Alaska, Department of Natural Resources, Division of Forestry for 2004 Spruce Bark Beetle Symposium

• Approval of contract with Soderstrom Architecture and Planning, Inc. for CPGH Expansion, Remodel Design Project
• Approval of contract with Frontier Community Services for two-month janitorial contract extension

• Other
 
• Kenai Peninsula Small Business Development Center - First Quarter Report

October 1, 2003 through December 31, 2003

PUBLIC HEARINGS ON ORDINANCES

(7:19:55)

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) (Referred to Finance Committee)

MOTION: Moss moved to enact Ordinance 2003-19-30.

Assembly Member Moss said the new well produced more water than anticipated and additional equipment was needed to handle the increased capacity.

President Sprague called for public comment with none being offered.

MOTION: Moss moved to amend Ordinance 2003-19-30 as follows:

Third Whereas to read, "CES Service Area Board at its regular board meeting of January 15, 2004 recommended enactment;"

MOTION TO AMEND PASSED: Without objection.

VOTE ON MOTION TO ENACT AS AMENDED:

Yes: Chay, Fischer, Long, Merkes, Moss, Sprague

No: None

Absent: Glick, Martin, Superman

MOTION TO ENACT AS AMENDED PASSED: 6 Yes, 0 No, 3 Absent

(7:24:15)

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) (Referred to Finance Committee)

MOTION: Moss moved to enact Ordinance 2003-19-31.

Assembly Member Moss said this funding represented the final reimbursement for the 2002 floods.

President Sprague called for public comment with none being offered.

VOTE ON MOTION TO ENACT:

Yes: Chay, Fischer, Long, Merkes, Moss, Sprague

No: None

Absent: Glick, Martin, Superman

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

(7:26:00)

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) (Referred to Finance Committee)

MOTION: Moss moved to enact Ordinance 2003-19-32.

Assembly Member Moss said the funds would help establish community response teams.

President Sprague called for public comment with none being offered.

VOTE ON MOTION TO ENACT:

Yes: Chay, Fischer, Long, Merkes, Moss, Sprague

No: None

Absent: Glick, Martin, Superman

MOTION TO ENACT PASSED: 6 Yes, 3 No, 3 Absent

(7:27:30)

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) (Referred to Finance Committee)

MOTION: Moss moved to enact Ordinance 2003-19-33.

Assembly Member Moss stated the bonds were approved by the voters in 2003 and this ordinance appropriated the funds for the expansion project.

President Sprague called for public comment with none being offered.

VOTE ON MOTION TO ENACT:

Yes: Chay, Fischer, Long, Merkes, Moss, Sprague

No: None

Absent: Glick, Martin, Superman

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

(7:31:00)

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) (Referred to Lands Committee)

[Clerk's Note: A teleconference site was established at the Kenai Peninsula Borough Seward Annex Office to receive public testimony on the above ordinance.]

MOTION: Merkes moved to enact Ordinance 2003-19-35.

Assembly Member Merkes noted the Planning Commission had recommended several amendments which were not supported by the administration.

President Sprague called for public comment.

The following people spoke in favor of Ordinance 2003-19-35 and urged the Assembly to adopt the amendments recommended by the Planning Commission:

Jerry Dixon, PO Box 1058, Seward, AK

Kathy Malcom-Byars, PO Box 1528, Seward, AK

Deborah Dixon, PO Box 1058, Seward, AK

Patricia Lindville, Chair of Seward School Site Council, letter was read into the record by Claudia Neklason

The following person spoke in favor of the ordinance as written:

Sandy Wassilie, 105 Lowell Canyon Road, Seward, AK

The following person spoke in opposition to Ordinance 2003-19-35:

Ruby Kime, Alice Avenue, Ninilchik, AK

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

MOTION: Merkes moved to amend Ordinance 2003-19-35 as follows:

First Whereas to read, "it has been determined that it is no longer cost-effective to maintain the current Seward Middle School facility [AND IT SHOULD BE DEMOLISHED] or to remodel the structure to comply with current fire and safety codes; and"

Assembly Member Long said the building could possibly be used for purposes other than as a school.

VOTE ON MOTION TO AMEND:

Yes: Chay, Fischer, Long, Merkes, Moss, Sprague

No: None

Absent: Glick, Martin, Superman

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

Assembly Member Long discussed options to purchase eight additional acres adjacent to the 12 acre school site.

Assembly Member Chay asked if the bonds had already been sold. Mayor Bagley replied in the affirmative. Public Works Director Rob Robson explained the construction timeline which must be followed if the school was to open as scheduled in August 2005.

With no objection from the assembly, Borough Clerk Murphy requested a technical amendment to Ordinance 2003-19-35 as follows:

Whereas, the KPB Planning Commission at its regularly scheduled meeting on January 26, 2004 recommend enactment with four amendments;

VOTE ON MOTION TO ENACT AS AMENDED:

Yes: Chay, Fischer, Long, Merkes, Moss, Sprague

No: None

Absent: Glick, Martin, Superman

MOTION TO ENACT AS AMENDED PASSED: 6 Yes, 0 No, 3 Absent

(7:54:25)

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) (Referred to Finance Committee)

MOTION: Moss moved to enact Ordinance 2003-19-36.

Assembly Member Moss said there were amendments forthcoming.

President Sprague called for public comment with none being offered.

MOTION: Moss moved to amend Ordinance 2003-19-36 as follows:

Title to read, "An Ordinance Appropriating $43,000 [$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"

Section 1 to read, "That the sum of $43,000 [$55,000] is hereby appropriated from the General Fund Fund Balance to the Assembly Elections Budget as follows:

[101] 100. 11130.00000.40120 Temporary Wages $7,000

[101] 100. 11130.00000.43140 Postage $16,000

[101] 100. 11130.00000.43410 Printing [$32,000] $20,000

TOTAL APPROPRIATION [$55,000] $43,000

VOTE ON MOTION TO AMEND:

Yes: Chay, Fischer, Long, Merkes, Moss, Sprague

No: None

Absent: Glick, Martin, Superman

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

VOTE ON MOTION TO ENACT AS AMENDED:

Yes: Chay, Fischer, Long, Merkes, Moss, Sprague

No: None

Absent: Glick, Martin, Superman

MOTION TO ENACT AS AMENDED PASSED: 6 Yes, 0 No, 3 Absent

(7:59:33)

Ordinance 2004-01: Amending KPB Title 16 to Require Public Notice of Vacancies on Service Area Boards Before Such Vacancies are Filled (Martin) (Referred to Policies and Procedures Committee)

MOTION: Long moved to enact Ordinance 2004-01.

President Sprague called for public comment with none being offered.

MOTION: Long moved to postpone Ordinance 2004-01 until February 17, 2004.

VOTE ON MOTION TO POSTPONE:

Yes: Chay, Fischer, Long, Merkes, Moss, Sprague

No: None

Absent: Glick, Martin, Superman

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

UNFINISHED BUSINESS (Postponed Items)

(8:02:00)

Resolution 2003-094: Supporting CS for HB 240 and SB 186, Acts Relating to Charitable Gaming Through Implementation of Electronic Gaming Machines (EGM) in the State of Alaska (Superman) (Referred to Legislative Committee)

[Clerk's Note: There was a motion to adopt on the floor from the August 19, 2003 meeting.]

MOTION: Long moved to postpone Resolution 2003-094 to the February 17, 2004 meeting.

Assembly Member Fischer declared he had a conflict of interest with respect to fund raising and gaming. President Sprague agreed and Mr. Fischer was excused from voting on this resolution.

President Sprague called for public comment.

The following person spoke in opposition to Resolution 2003-094:

Ruby Kime, Alice Avenue, Ninilchik, AK

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

VOTE ON MOTION TO POSTPONE:

Yes: Chay, Long, Merkes, Moss, Sprague

No: None

Absent: Glick, Martin, Superman

Abstain: Fischer

MOTION TO POSTPONE PASSED: 5 Yes, 3 No, 3 Absent, 1 Abstention

(8:05:15)

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

[Clerk's Note: There was a motion to approve the proposition summary on the floor from the January 20, 2004 meeting.]

President Sprague called for public comment.

The following person suggested changes to the proposition language:

Ruby Kime, Alice Avenue, Ninilchik, AK

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

MOTION: Long moved to amend the proposition language as follows:

The second paragraph to read, "...have resulted in an anticipated sizeable budget shortfall for the next fiscal year [OF NEARLY SEVEN MILLION DOLLARS].

VOTE ON MOTION TO AMEND:

Yes: Chay, Fischer, Long, Merkes, Moss, Sprague

No: None

Absent: Glick, Martin, Superman

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

Assembly Members Merkes and Fischer inquired if the original proposition language could be changed. Borough Clerk Murphy and Borough Attorney Thompson noted the requirements for public notice if the proposition was changed. It was reported the election was established by resolution and changes could occur. At the request of Assembly Member Fischer, Borough Clerk Murphy changed the wording of the "No" explanation to read, "A No vote will result in no change to powers and authorities currently held by the borough and may [WOULD PROBABLY] result in no additional local funding for cocurricular activities outside of the funding cap established by state law."

VOTE ON MOTION TO APPROVE

AS AMENDED:

Yes: Chay, Fischer, Long, Merkes, Moss, Sprague

No: None

Absent: Glick, Martin, Superman

MOTION TO APPROVE AS

AMENDED PASSED: 6 Yes, 0 No, 3 Absent

NEW BUSINESS

(8:34:35)

Resolution 2004-011: Authorizing Award of a Contract for Professional and Design Services for the Central Peninsula General Hospital Expansion, Remodel and Renovation (Mayor) (Referred to Finance Committee)

MOTION: Moss moved to adopt Resolution 2004-011.

Assembly Member Moss noted the companion ordinance appropriating funds was passed earlier on the agenda and a contract could now be awarded.

President Sprague called for public comment with none being offered.

VOTE ON MOTION TO ADOPT:

Yes: Chay, Fischer, Long, Merkes, Moss, Sprague

No: None

Absent: Glick, Martin, Superman

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

(8:36:40)

Resolution 2004-015: Supporting Legislation Mandating That Fiscal Notes Considering Impact on Local Taxpayers Be Required for All State of Alaska Legislation and Administrative Actions That Could Have Economic Impacts on School Districts and Local Governments (Long, Glick, Chay) (Referred to Legislative Committee)

MOTION: Long moved to adopt Resolution 2004-015.

Assembly Member Long said there was no discussion on this resolution during the Legislative Committee.

President Sprague called for public comment.

The following person spoke in favor of Resolution 2004-015:

Ruby Kime, Alice Avenue, Ninilchik, AK

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

Assembly Member Long noted Alaska was one of the few states that did not require fiscal notes considering the impact on local taxpayers.

VOTE ON MOTION TO ADOPT:

Yes: Chay, Fischer, Long, Merkes, Moss, Sprague

No: None

Absent: Glick, Martin, Superman

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

(8:41:00)

Street Name Review as Requested by Maxime H. Dansereau (Amiyung Court - Planning Commission Resolution SN2003-14) (Referred to Lands Committee)

Assembly Member Merkes said the Planning Department staff explained the street naming process during the Lands Committee.

Planning Director Max Best explained the history of the street name change originally due to 911 addressing. A petition was presented to the Clerk's Office by Maxime Dansereau to change the name to Canal Court.

The following people spoke in favor of changing the name from Amiyung Court to Canal Court.

Irv Carlile, 37335 Lancashire, Soldotna, AK

Danny Dansereau, Lot 20, Salmon Run Acres Subdivision, Soldotna, AK

Stan Smith, Lot 22, Salmon Run Acres Subdivision, Soldotna, AK, a letter was read into the record by Danny Dansereau

Gertrude E. Brown, 7741 Maryland Avenue, Anchorage, AK

Sidney and Anna Traylor, 320 Patterson Street, Anchorage, AK, a letter was read into the record by Gertrude Brown

Lawrence Brown, 7741 Maryland Avenue, Anchorage, AK

Ross Grubb, 46035 Amiyung Court, Soldotna, AK

Maxime Dansereau, 46090 Amiyung Court, Soldotna, AK

The following people spoke in favor of retaining the name Amiyung Court.

Ray Debardelaben, 46140 Amiyung Court, Soldotna, AK

Barbara Roper, 46075 Amiyung Court, Soldotna, AK

Gina Joyce, 46140 Amiyung Court, Soldotna, AK

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

MOTION: Long moved to affirm the action of the Planning Commission.

Assembly Member Moss asked for clarification regarding borough reimbursement for business costs associated with two or more street name changes in one year. Planning Director Best said that would be a policy decision and he would rely on the administration for that decision.

Assembly Member Long asked if there were other streets in the borough named, "Canal." Mr. Best said there were no other such streets.

VOTE ON MOTION TO UPHOLD THE

ACTION OF THE PLANNING COMMISSION:

Yes: Long, Moss, Sprague

No: Fischer, Chay, Merkes

Absent: Glick, Martin, Superman

MOTION TO UPHOLD FAILED: 3 Yes, 3 No, 3 Absent

Borough Attorney Thompson said the appropriate motion would now be to approve the name change to Canal Court.

MOTION: Merkes moved to change the name to Canal Court.

VOTE ON MOTION TO RENAME TO

CANAL COURT:

Yes: Fischer, Chay, Merkes

No: Long, Moss, Sprague

Absent: Glick, Martin, Superman

MOTION TO RENAME FAILED: 3 Yes, 3 No, 3 Absent

Assembly Member Merkes gave notice of reconsideration on the street name change to Canal Court.

PUBLIC COMMENTS AND PUBLIC PRESENTATIONS - None. (9:35:25)

ASSEMBLY MEETING AND HEARING ANNOUNCEMENTS

• The next meeting of the Kenai Peninsula Borough Assembly was scheduled for February 17, 2004, at 7:00 p.m. in the Assembly Chambers, Borough Administration Building, Soldotna, Alaska.

ASSEMBLY COMMENTS (9:35:38)

Assembly President Sprague thanked the public for their participation at the meeting.

ADJOURNMENT (9:36:40)

With no further business to come before the assembly, President Sprague adjourned the meeting at 9:36 p.m.

I certify the above represents accurate minutes of the Kenai Peninsula Borough Assembly meeting of February 3, 2004.

Approved by Assembly: