CALL TO ORDER

A Regular Meeting of the Kenai Peninsula Borough Assembly was held on February 17, 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 Rick Cupp, Kenai Fellowship.

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 (7:03:00)

Assembly Member Martin said the Lands Committee heard a presentation from Rachel Clark, KPB Environmental Compliance Coordinator, on groundwater hydrology and then addressed its agenda items.

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.

Assembly Member Long stated the Legislative Committee discussed its agenda items and the 2004 federal legislative priorities. Mr. Long said a work session was held earlier in the morning to finalize the priorities.

(7:18:00)

MOTION: Long moved to authorize the assembly president to send a letter of support for the Homer library expansion project, funded by the U.S. Department of Agriculture.

MOTION PASSED: Unanimous.

APPROVAL OF AGENDA AND CONSENT AGENDA (7:18:44)

MOTION TO APPROVE AGENDAS: Martin 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 items were moved from the consent agenda to the regular agenda:

• Resolution 2004-021: Supporting the Subdivision of Approximately 867 Acres of Land in the Point Possession Area (Mayor) (Referred to Lands Committee)

• Resolution 2004-023: Establishing an Additional Projects Manager Position in the Capital Projects Department (Mayor) (Referred to Policies and Procedures Committee(
• Resolution 2004-024: Supporting the Concept of a Statewide Broad Based Visitor Industry Self-Assessment for Tourism Marketing that Includes Funding for Marketing the Kenai Peninsula (Mayor) (Referred to Policies and Procedures Committee)
• Ordinance 2003-19-38: Authorizing the Acquisition of Lots 4, 5, 6 Block 2, Sumpter Subdivision for an Addition to the Sterling Senior Center and Appropriating $60,600 to Acquire the Property and Authorizing the Sale of Subject Lots to the Sterling Area Senior Citizens (Merkes, Mayor) (Hearing on 03/16/04) (Referred to Lands Committee)

The following items were added to the regular agenda:

• Resolution 2004-025: Establishing Federal Legislative and Funding Priorities for the Year 2004 (Fiscal Year 2005) (Legislative Committee)
• Petition to vacate a 1.7-foot portion of the 60-foot access easement to accommodate the existing building, dedicated by Questa Woods Number One (Plat SW 83-15); within Sections 13 & 14, Township 1 North, Range 1 West, Seward Meridian, Alaska: and the Kenai Peninsula Borough; KPB File 2004-020; Location: Off Cherrywood Lane in the Seward Area (Referred to Lands Committee)
• Petition to vacate a portion of Lincoln Street between Lots 68 & 73, 69 & 72, 70 & 71 and vacate the 20' Alley Way between Bear Lake Road and the North 40 feet of Lot 98, dedicated by Woodrow Alaska (Plat SW #8); within Section 12, Township 1 North, Range 1 West, Seward Meridian, Alaska; and the Kenai Peninsula Borough; KPB File 2004-019; Location Bear Lake area in Seward (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.

• February 3, 2004 Regular Assembly Meeting Minutes
• Resolution 2004-017: Designating the Newspaper and Awarding the Contract for the Publication of the 2004 Property Tax Foreclosure List, the Delinquent Personal Property Tax and the Delinquent Real Property Lease Lists for the Tax Year 2003 (Mayor) (Referred to Finance Committee)
• Resolution 2004-018: Authorizing the Mayor to Execute an Agreement on Behalf of the Anchor Point Fire and Emergency Medical Service Area with the Anchor Point Volunteer Fire Department and Rescue, Inc. (APVFD&R, Inc.) (Mayor at the Request of the APFEMSA Board) (Referred to Finance Committee)
• Resolution 2004-019: Authorizing Award of Contract for the Kenai Middle School Bleacher Replacement Project (Mayor) (Referred to Finance Committee)
• Resolution 2004-020: Authorizing Award of a Contract for the Purchase of Bulk Calcium Chloride for the Road Service Area Dust Control Program (Mayor) (Referred to Finance Committee)

• Ordinance 2004-04: Amending the Kenai Peninsula Borough Code to Clarify that the Powers and Duties of Advisory Planning Commissions Include Making Recommendations to the Assembly Through the Planning Commission and Directly to the Assembly Upon Request of the Assembly (Martin) (Hearing on 03/16/04) (Referred to Policies and Procedures Committee)
• Ordinance 2004-05: Amending the Kenai Peninsula Borough Code Chapter 5.12 by Revising Procedures for Appeals to the Board of Equalization (Mayor) (Hearing on 03/16/04) (Referred to Policies and Procedures Committee)
• Ordinance 2003-19-37: Appropriating $161,809.88 to the Special Assessment Fund for Char Subdivision Natural Gas Line Utility Special Assessment District (Mayor) (Hearing on 03/16/04) (Referred to Finance Committee)
• Petition to vacate a portion of Marion Circle, and associated public utility easements, dedicated by Marion Subdivision (Plat KN 1597) and Marion Subdivision Amended Lots 10, 11 and 12 Block 4 (Plat KN 74-108); within Section 14, Township 7 North, Range 12 West, Seward Meridian, Alaska; and within the Kenai Peninsula Borough; KPB File 2004-018; Location: East of Island Lake Road in Nikiski (Referred to Lands Committee)

[Clerk's Note: The Planning Commission approved the referenced vacation by unanimous consent subject to staff's recommendations during its regularly scheduled January 26, 2004 meeting. Staff recommended approval subject to submittal of a preliminary plat in accordance with Chapter 20 of the KPB Code (submittal of a final plat within one year of vacation approval).]

• Appointment of Canvass Board for the March 30, 2004 Special By Mail Borough Election (Referred to Policies and Procedures Committee)

[Clerk's Note: The following people were approved as members of the Canvass Board for the March 30, 2004 Special By-Mail Election:

Sue Krizer, Chair Sharon Harris Nita Douthit

Jackie Walgenbach Lori Seymore]

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 (7:28:45)

David Martin, 71605 Sterling Highway, Clam Gulch, President of Cook Inlet Fisherman's Fund, requested funds from the borough to initiate a lawsuit to repeal regulations that have impacted the Cook Inlet commercial fishing industry. The Fisherman's Fund had raised $335,000 and asked for $165,000 from the borough. The lawsuit would seek injunctive and regulatory relief in addition to compensation for prior years' losses.

(7:46:00)

Assembly Member Glick asked Borough Attorney Thompson if the borough had the authority to lend or grant money to fund such a request. Ms. Thompson said, under statutes, the borough could only maintain an action relating to losses or damages suffered by the borough. Ms. Thompson said she would like to review this issue further. Attorney Thompson said the borough could not lend or grant municipal funds in support of any matter such as this.

(7:48:38)

Assembly Member Superman asked about the status of House Bill 396, relating to the management of salmon and other fish stocks. Mr. Martin said it was just introduced a few weeks ago and had not moved out of committee.

PUBLIC COMMENTS ON ITEMS NOT APPEARING ON THE AGENDA (7:52:48)

Ruby Kime, Alice Avenue, Ninilchik, encouraged the assembly to look again at the construction of a new Seward Middle School and requested the project be halted. Ms. Kime suggested the student population be reconfigured from three to two schools, one with K-Grade 6 and the other with Grades 7-12. The Seward schools have a combined student capacity of 1200, with the current enrollment at 688 students. Ms. Kime said the 10 year projected enrollment for the Seward schools showed a decrease of 100 students. Ms. Kime said constructing the new middle school equated to spending $125,000 per student based on the facility's current enrollment.

Assembly Member Glick asked if the project could be halted at this time. Mayor Bagley did not know and suggested the school district administration be consulted also. Ms. Glick noted the Board of Education should also be involved.

Assembly Member Fischer asked where the borough was in the process. Attorney Thompson said the bonds had been sold and the borough had entered into an agreement with the Department of Education. Ms. Thompson said she would report back to the assembly at a later date.

Paul Shadura, 35188 Rockwood Drive, Soldotna, spoke in favor of the proposed Fisherman's Fund lawsuit for just compensation.

Don Johnson, PO Box 876, Soldotna, spoke in opposition to the proposed Fisherman's Fund lawsuit.

John McCombs, PO Box 87, Ninilchik, spoke in favor of the Cook Inlet Fisherman's Fund lawsuit.

Roland Maw, PO Box 530, Kasilof, spoke in favor of the proposed lawsuit.

Steve Vanek, PO Box 103, Ninilchik, spoke in favor of the lawsuit and requested borough support.

Ricky Gease, 4289 Beaver Loop Road, Kenai, said the golden age of commercial fishing may have passed, and he suggested other options and alliances with small catcher/processors.

REPORTS OF COMMISSIONS AND COUNCILS - None.

MAYOR'S REPORT (8:36:00)

• Spruce Bark Beetle Mitigation Program:

• �Approval of contract with Jackinsky Services for Sterling Hwy #1 ROW Project
• �Approval of contract with Jackinsky Services for Sterling Hwy #2 ROW Project
• �Approval of contract with Jackinsky Services for Sterling Hwy #3 ROW Project
• �Approval of Cooperative Agreement between KPB and State of Alaska, Department of Natural Resources, Division of Forestry for 2004 Stewardship Forestry Reforestation Program

• Approval of sole source contract with Westlaw for Computerized Legal Research purposes
• Approval of sole source contract with Rozak Engineering for 2004 Clinic Demolitions/Underground Storage Tank Removal at South Peninsula Hospital
• Other
• Budget Revision and Expenditure Report - January 2004

PUBLIC HEARINGS ON ORDINANCES

(8:36:20)

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)

MOTION: Moss moved to enact Ordinance 2004-02.

Assembly Member Moss said this would provide for expedited purchase of voting supplies, voter pamphlets and other election materials, not just ballots as currently allowed.

President Sprague called for public comment with none being offered.

MOTION TO ENACT PASSED: Unanimous.

(8:38:00)

Ordinance 2003-19-34: Authorizing a $50,000 Intergovernmental Loan and 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) (Referred to Finance Committee)

MOTION: Moss moved to enact Ordinance 2003-19-34.

Assembly Member Moss said this newly formed service area would repay the borough once service area taxes have been collected.

President Sprague called for public comment with none being offered.

MOTION TO ENACT PASSED: Unanimous.

(8:50:54)

UNFINISHED BUSINESS (Postponed Items)

Resolution 2003-094: In Support of 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.]

President Sprague called for public comment.

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

Nick Williams, PO Box 4394, Soldotna, AK

Ruby Kime, Alice Avenue, Ninilchik, AK

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

President Sprague noted that Assembly Member Fischer had a conflict of interest and would not be voting on Resolution 2003-094.

Assembly Member Superman said it appeared the gaming issue was stalled in Juneau and did not expect HB 240 or SB 186 to be adopted by the legislature.

MOTION: Superman moved to table Resolution 2003-094.

VOTE ON MOTION TO TABLE:

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

No: None

Absent: None

Abstain: Fischer

MOTION TO TABLE PASSED: 8 Yes, 0 No, 0 Absent, 1 Abstention

(9:04:00)

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)

[Clerk's Note: There was a motion to enact on the floor from the February 3, 2004 meeting.]

President Sprague called for public comment with none being offered.

MOTION: Martin moved to postpone Resolution 2004-01 until March 16, 2004, to incorporate the numerous amendments into a substitute resolution.

MOTION TO POSTPONE PASSED: Unanimous.

(9:05:21)

UNFINISHED BUSINESS (Notice of Reconsideration)

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

[Clerk's Note: Ms. Merkes gave notice of reconsideration of her motion to change Amiyung Court to Canal Court. Original motion failed.]

MOTION: Merkes moved to reconsider the street name review.

VOTE ON MOTION TO RECONSIDER:

Yes: Chay, Martin, Merkes

No: Fischer, Glick, Long, Moss, Superman, Sprague

Absent: None

MOTION TO RECONSIDER FAILED: 3 Yes, 6 No, 0 Absent

NEW BUSINESS (9:07:40)

Resolution 2004-021: Supporting the Subdivision of Approximately 867 Acres of Land in the Point Possession Area (Mayor) (Referred to Lands Committee)

MOTION: Martin moved to adopt Resolution 2004-021.

Assembly Member Martin said much of the inventory in the Gray Cliff and Moose Point Subdivisions had been sold. The North Road extension project would provide closer access to the Point Possession area. Ms. Martin said this new subdivision would provide 62 lots for sale, with eight lots retained for future public use.

President Sprague called for public comment with none being offered.

Assembly Member Moss asked if the property would increase in value as road access improved. Marcus Mueller, KPB Planning Department, said the lots were intended for recreational use regardless of the road extension.

Assembly Member Fischer said a private developer would be required to build roads for any subdivision. Planning Director Best said there were no such requirements in the Borough Code to complete roads prior to subdividing property.

(9:21:25)

The gavel was passed to Vice President Superman. President Sprague spoke in opposition to Resolution 2004-0021. The gavel was returned to President Sprague.

VOTE ON MOTION TO ADOPT:

Yes: Fischer, Glick, Long, Merkes, Superman

No: Chay, Moss, Sprague, Martin

Absent: None

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

President Sprague gave notice of reconsideration of Resolution 2004-021.

(9:24:22)

Resolution 2004-022: Proceeding with the Char Subdivision Utility Special Assessment District for a Natural Gas Main Line (Mayor) (First of Two Hearings) (Referred to Finance Committee)

MOTION: Moss moved to adopt Resolution 2004-022.

President Sprague called for public comment with none being offered.

MOTION: Moss moved to postpone Resolution 2004-022 until the next scheduled hearing date of March 16, 2004.

MOTION TO POSTPONE PASSED: Unanimous.

(9:26:25)

Resolution 2004-023: Establishing an Additional Projects Manager Position in the Capital Projects Department (Mayor) (Referred to Policies and Procedures Committee)

MOTION: Glick moved to adopt Resolution 2004-023.

Assembly Member Glick stated there were currently three project managers in the Capital Projects division. This new position would allow for a person to be in Seward during the Seward Middle School project and then go to the Homer area to oversee the expansion project at the South Peninsula Hospital.

President Sprague called for public comment with none being offered.

Assembly Member Long said these projects allowed for administrative costs which would fund the position.

Public Works Director Rob Robson said when the projects were completed, the position would be eliminated.

Assembly Members Moss and Superman spoke in favor of Resolution 2004-023.

MOTION: Martin moved to amend Resolution 2004-023 as follows:

New Section 3 to read, "That it is anticipated that the project manager will be needed for a period of approximately 3 years, with time dedicated to the capital projects listed. The position will be deleted when the projects are completed and the appropriated monies are spent."

And to renumber the remaining section accordingly.

MOTION TO AMEND PASSED: Without objection.

VOTE ON MOTION TO ADOPT AS AMENDED:

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

No: Fischer

Absent: None

MOTION TO ADOPT AS AMENDED PASSED: 8 Yes, 1 No, 0 Absent (9:47:25)

Resolution 2004-024: Supporting the Concept of a Statewide Broad Based Visitor Industry Self-Assessment for Tourism Marketing that Includes Funding for Marketing the Kenai Peninsula (Mayor) (Referred to Policies and Procedures Committee)

MOTION: Glick moved to adopt Resolution 2004-024.

Assembly Member Glick said this appeared to be a funding mechanism for the Kenai Peninsula Tourism Marketing Council (KPTMC) and, more importantly, addressed tourism for the Kenai Peninsula Borough as a whole during the shoulder seasons.

President Sprague called for public comment with none being offered.

Assembly Member Superman asked if this resolution was brought forth by KPTMC. Mayor Bagley said they were supportive of the issue, but this was presented by Jon Faulkner of Homer.

Assistant to the Mayor Ed Oberts said Senate Bill 254 referred to taxes on rental cars, charter services, train trips, lodging, cruise ships and other tourism related activities.

Assembly Member Moss said the concept of a statewide broad based visitor industry self-assessment was a good step forward. This was similar to the Alaska Seafood Marketing Institute (ASMI) program for the fishing industry.

Assembly Member Fischer felt these funds would not be returned to the visitor associations, but would remain in the State's General Fund.

VOTE ON MOTION TO ADOPT:

Yes: Glick, Long, Martin, Moss, Sprague

No: Fischer, Chay, Superman, Merkes

Absent: None

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

(10:00:44)

Resolution 2004-025: Establishing Federal Legislative and Funding Priorities for the Year 2004 (Fiscal Year 2005) (Legislative Committee)

MOTION: Long moved to adopt Resolution 2004-025.

Assembly Member Long stated this resolution adopted the Federal Priorities Book as well as the Transportation Priorities Book.

President Sprague called for public comment with none being offered.

MOTION TO ADOPT PASSED: Unanimous.

(10:02:08)

Ordinance 2003-19-38: Authorizing the Acquisition of Lots 4, 5, 6 Block 2, Sumpter Subdivision for an Addition to the Sterling Senior Center and Appropriating $60,600 to Acquire the Property and Authorizing the Sale of Subject Lots to the Sterling Area Senior Citizens (Merkes, Mayor) (Hearing on 03/16/04) (Referred to Lands Committee)

MOTION: Martin moved to introduce Ordinance 2003-19-38 and set for public hearing on March 16, 2004.

President Sprague called for public comment with none being offered.

VOTE ON MOTION TO INTRODUCE

AND SET PUBLIC HEARING:

Yes: Chay, Fischer, Long, Martin, Merkes, Superman

No: Glick, Moss, Sprague

Absent: None

MOTION TO INTRODUCE AND SET

PUBLIC HEARING PASSED: 6 Yes, 3 No, 0 Absent

(10:06:20)

Petition to vacate a 1.7-foot portion of the 60-foot access easement to accommodate the existing building, dedicated by Questa Woods Number One (Plat SW 83-15); within Sections 13 & 14, Township 1 North, Range 1 West, Seward Meridian, Alaska: and the Kenai Peninsula Borough; KPB File 2004-020; Location: Off Cherrywood Lane in the Seward Area (Referred to Lands Committee)

[Clerk's Note: The Planning Commission approved the referenced vacation during its regularly scheduled February 9, 2004 meeting by a majority vote.]

MOTION: Martin moved to veto the action of the Planning Commission.

Assembly Member Martin noted the vote by the Planning Commission was unanimous on the 20 foot setback, but the Commission voted 9 to 4 to grant the vacation of the 1.7 foot portion.

Attorney Thompson said the assembly must take action within 30 days of the Planning Commission's action if it wished to overturn the vacation.

President Sprague called for public comment with none being offered.

Assembly Member Long referred to the findings of the planning commission and noted no real harm was done by the 1.7 foot encroachment.

(10:11:05)

The gavel was passed to Vice President Superman. Assembly President spoke in favor of the motion to veto. The gavel was returned to President Sprague.

VOTE ON MOTION TO VETO THE ACTION

OF THE PLANNING COMMISSION:

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

No: Merkes, Long

Absent: None

MOTION TO VETO THE ACTION OF THE

PLANNING COMMISSION PASSED: 7 Yes, 2 No, 0 Absent

(10:12:33)

Petition to vacate a portion of Lincoln Street between Lots 68 & 73, 69 & 72, 70 & 71 and vacate the 20' Alley Way between Bear Lake Road and the North 40 feet of Lot 98, dedicated by Woodrow Alaska (Plat SW #8); within Section 12, Township 1 North, Range 1 West, Seward Meridian, Alaska; and the Kenai Peninsula Borough; KPB File 2004-019; Location Bear Lake area in Seward (Referred to Lands Committee)

[Clerk's Note: The Planning Commission approved the referenced vacation by unanimous consent subject to staff's recommendations during its regularly scheduled February 9, 2004 meeting. Staff's recommendations follow:

• Alternate dedication of a right-of-way over the roadway constructed adjacent to and through Lincoln Street.
• Alternate dedication of a right-of-way over the roadway constructed adjacent to and through the alley extending south from Lincoln Street
• Resolution of encroachment problems in Bear Lake Drive with the State of Alaska Department of Transportation or the Kenai Peninsula Borough.
• Extension of the submittal time requirements of KPB Codes: submittal of a preliminary plat in accordance with Chapter 20 of the KPB Code AND submittal of a final plat within tow years of vacation approval.

MOTION: Martin moved to veto the action of the Planning Commission.

Assembly Member Martin said a meeting was scheduled with the Alaska Department of Transportation and the Alaska Department of Natural Resources to solve on the Bear Lake Road encroachments. The Planning staff had allocated a two year time frame to submit the final plat, due to the complexity of the vacation and the number of agencies involved.

President Sprague called for public comment.

The following person spoke in favor of upholding the action of the Planning Commission:

Lynn Hettick, PO Box 2554, Seward, AK

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

With no objection from the assembly, Ms. Martin withdrew her motion to veto the action of the Planning Commission.

[Clerk's Note: With no action from the assembly, the Planning Commission's action stands.]

PUBLIC COMMENTS AND PUBLIC PRESENTATIONS (10:24:00)

Lynn Hettick, PO Box 2554, Seward, stated the current Seward Middle School was not handicapped accessible and did require considerable improvements.

Will Madison, 34435 Keystone Drive, Soldotna, thanked the assembly for the favorable action on the federal priorities, specifically Keystone Drive.

George Elser, PO Box 727, Sterling, spoke on behalf of the Sterling Seniors and thanked the assembly for introducing Ordinance 2003-19-38.

ASSEMBLY MEETING AND HEARING ANNOUNCEMENTS (10:28:50)

Approved by Assembly: