Assembly meeting minutes

Kenai Peninsula Borough

Assembly Meeting Minutes

March 16, 2004 - 7:00 p.m. Regular Meeting - Soldotna, Alaska

CALL TO ORDER

A Regular Meeting of the Kenai Peninsula Borough Assembly was held on March 16, 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 Marian Nickelson, St. Francis by the Sea Episcopal Church, Nikiski.

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

Holly Montague, Assistant Borough Attorney

Linda Murphy, Borough Clerk

Sherry Biggs, Deputy Borough Clerk

COMMITTEE REPORTS (7:04:10)

Assembly Member Long stated the Legislative Committee met and heard reports on the recent lobbying trip to Washington, D.C. Assembly Members Glick, Long and Sprague also attended the National Association of Counties (NACo) Annual Legislative Conference.

MOTION: Long moved to authorize Assembly Member Moss to work with President Sprague to reaffirm the borough's position regarding Gulf Groundfish rationalization in a letter to the North Pacific Fisheries Management Council.

MOTION PASSED: Unanimous.

MOTION: Long moved to send a letter of thanks to Senators Stevens and Murkowski, Representative Young, and John Katz of the Governor's Office in regards to the recent visit to Washington, D.C.

MOTION PASSED: Unanimous.

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

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

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

APPROVAL OF AGENDA AND CONSENT AGENDA (7:21:02)

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 2004-031: Adopting a Public Safety Communications Strategic Plan for the Kenai Peninsula Borough (Mayor) (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.

February 17, 2004 Regular Assembly Meeting Minutes
Resolution 2004-026: Authorizing Award of a Contract for the Seward Middle School Phase I, Site Work (Mayor) (Referred to Finance Committee)
Resolution 2004-027: Recommending the Award to Area Contractors for the Application of Calcium Chloride on Road Service Area Gravel Roads (Mayor) (Referred to Finance Committee)
Resolution 2004-028: Confirming the Appointments of Assembly Members to Non-Borough Committees and Boards (Sprague) (Referred to Policies and Procedures Committee)
Resolution 2004-029: Authorizing Transfer of Funds from the Completed Kenai Middle School Fire Alarm Project to the Soldotna Middle School Fire Alarm Project (Mayor) (Referred to Finance Committee)
Resolution 2004-030: Authorizing the Rejection of Certain Municipal Entitlement Selections within ADL 201302 Near Hope, Alaska (Mayor) (Referred to Lands Committee)

[Clerk's Note: The following technical amendment was made to Resolution 2004-030:

Final Whereas to read, "the KPB Planning Commission conducted a public hearing during its regularly scheduled meeting of March 8, 2004 and recommended adoption by unanimous consent;"]

Ordinance 2003-19-39: Accepting and Appropriating a Direct Lump Sum Payment from the U.S. Forest Service in the Amount of $929,000 for the Removal of Dead and Dying Spruce Trees (Mayor) (Hearing on 04/20/04) (Referred to Finance Committee)
Ordinance 2003-19-40: Appropriating $100,000 for the Site Evaluation and Schematic Design of a New Multi-Use Building for E-911 Dispatch, Central Emergency Services Administration, and the Borough Office of Emergency Management on Borough Property Located on Wilson Lane in Soldotna, Alaska (Mayor) (Hearing on 04/20/04) (Referred to Finance Committee)
Ordinance 2003-19-41: Increasing the Fiscal Year 2004 Road Service Area Capital Improvement Project Budget from $1,300,000 to $1,741,829 and Transferring $278,086 from the Road Service Area Operating Fund Balance and Redirecting $163,743 from Completed Projects to Provide the Additional Funding (Mayor) (Hearing on 04/20/04) (Referred to Finance Committee)
Ordinance 2004-06: Amending KPB Chapter 14.10 to Eliminate Assembly Review of Street Naming Decisions and Limiting the Frequency that Street Names May be Changed (Sprague) (Hearing on 04/20/04) (Referred to Lands Committee)
Ordinance 2004-07: Amending KPB 5.12.350 Regarding Enforcement of Personal Property Taxes and Other Taxes (Mayor) (Hearing on 04/20/04) (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 (7:26:03)

Assembly Member Martin presented a commending resolution to Monte Garroutte, recognizing him as the 4A State wrestling champion in the 135 pound weight class.

Assembly Member Martin recognized Morgan Jones and Aleta Phelps for their recent cross country ski wins.

Assembly Member Martin commended Nicole Osmar for her achievement as the 2004 Junior Iditarod Champion.

PRESENTATIONS WITH PRIOR NOTICE (7:31:33)

Mark Hamilton, President of the University of Alaska, thanked the assembly for the borough's financial support and commitment to the Kenai Peninsula College. President Hamilton asked the assembly to send a letter of support to the legislature requesting full state funding for the university system.

PUBLIC COMMENTS ON ITEMS NOT APPEARING ON THE AGENDA - None.

REPORTS OF COMMISSIONS AND COUNCILS - None.

MAYOR'S REPORT (7:39:39)

Agreements and Contracts

Spruce Bark Beetle Mitigation Program:

Approval of contract with Pearse Construction, Inc. for VIP ROW Project
Approval of contract with Steve's Tree Service for Burton Drive ROW Project
Approval of contract with Pearse Construction, Inc. for Pirate ROW Project
Approval of contract with Steve's Tree Service for Terrace ROW Project
Approval of contract with Segesser Surveys for Tustumena Lake Road Project
Approval of contract with Segesser Surveys for Running Water Project
Approval of contract with Paul's Services for West Homer Elementary Slash Piles Removal

Approval of contract with First American Title/Homer for Limited Liability Reports

Approval of contract with First American Title/Kenai for Limited Liability Reports

Approval of contract with First American Title/Seward for Limited Liability Reports

Approval of sole source contracts for predevelopment of senior citizen housing facilities to the Cooper Landing Senior Citizens Corporation, Inc., the Sterling Area Senior Citizens, and the Nikiski Senior Citizens, Inc.

Approval of sole source contract with Enterprise Engineering, Inc. for Nanwalek School Roof Replacement

Approval of contract with Alliance One Receivables Management for Contract Collection Services

Approval of contract with Chuck Osmond for Real Property Appraisal - Sterling Forest Subdivision #2

Approval of Agreement between KPB and the Anchor Point Volunteer Fire Department and Rescue, Inc. for the Provision of Fire and Emergency Medical Rescue Services

Approval of contract with Rozak Engineering for preparation of documents for demolition and removal of Clinic Building and Underground Fuel Storage Tank System at South Peninsula Hospital

Other

Litigation Status Report - March 4, 2004

Assembly Member Glick inquired about the Running Water Survey Contract and asked for additional information. Mayor Bagley said he would supply that information to Ms. Glick. Assembly Member Glick also asked for clarification on the contracts to First American Title and the sole source contracts for predevelopment of senior citizen housing facilities. Mayor Bagley said he would get those answers to Ms. Glick.

Assembly Member Long asked about the status of Faulk v KPB Board of Equalization as listed in the Litigation Report. Assistant Attorney Holly Montague said she would check the status and respond to Mr. Long.

Assembly Member Glick asked that all assembly members receive the requested information.

Assembly Member Merkes asked about another item in the Litigation Report, Wade v KPB. Ms. Montague also noted that request for information.

PUBLIC HEARINGS ON ORDINANCES

(7:43:49)

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) (Referred to Lands Committee)

MOTION: Martin moved to enact Ordinance 2004-03.

Assembly Member Martin said this ordinance represented an effort to resolve a nearly 20-year trespass on borough property.

President Sprague called for public comment with none being offered.

MOTION: Martin moved to amend Ordinance 2004-03 as follows:

Final Whereas to read, "the KPB Planning Commission at its regularly scheduled meeting of February 9, 2004 recommended by unanimous consent that the Assembly not enact this ordinance;"

MOTION TO AMEND PASSED: Without objection.

Assembly Member Glick said when the property was conveyed from the City of Kenai to the borough, there were restrictions giving consideration for educational uses and protection of the barabaras as archaeological and historical sites. Ms. Glick suggested the parcel be placed for public auction. Ms. Glick also suggested the trespasser should pay back taxes on the parcel, in addition to the purchase price.

Mayor Bagley said the barabaras were along the bluff portion of the property and not near this area. Mayor Bagley said there was a water line near the edge of the parcel.

Assembly Member Merkes asked if the storm drainage and the water line were one in the same. Paul Ostrander, KPB Planning Department, said they were the same.

Assembly Member Long said this action was not an appropriate remedy.

Assembly Member Glick noted the Planning Commission was not in favor of this ordinance.

MOTION TO ENACT AS AMENDED FAILED: Unanimous. (8:03:20)

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) (Referred to Policies and Procedures Committee)

MOTION: Glick moved to enact Ordinance 2004-04.

Assembly Member Glick stated an amendment was forthcoming.

President Sprague called for public comment with none being offered.

MOTION: Martin moved to amend Ordinance 2004-04 as follows:

Add a new final whereas to read, "the KPB Planning Commission at its regularly scheduled meeting of March 8, 2004 recommended approval by unanimous consent;"

MOTION TO AMEND PASSED: Without objection.

MOTION: Martin moved to amend Ordinance 2004-04 as follows:

Section 1.(B) to read, "Recommendations to the Kenai Peninsula Borough Planning Commission and, when requested[,] by majority vote of [TO] the assembly, on land use ..."

Section 2.(B) to read, "Unless direct comments from the APC are requested by majority vote of the assembly, the APC may..."

Section 2. (C) to read, "A recommendation from the APC to the Planning Commission, or to the assembly when requested by majority vote of the assembly, shall be submitted..."

Section 3. (F) to read, "...Any recommendations forwarded to the Planning Commission, or the assembly upon assembly request by majority vote [REQUEST], shall require..."

MOTION TO AMEND PASSED: Without objection.

Assembly Member Long asked for clarification on the reference to "developing capital project plans" as listed in the fourth whereas. Mr. Long hoped it did not refer to the legislative priority process. Assembly Member Martin said this ordinance provided consistency within the borough code.

MOTION TO ENACT AS AMENDED PASSED: Unanimous.

(8:13:33)

Ordinance 2004-05: Amending the Kenai Peninsula Borough Code Chapter 5.12 by Revising Procedures for Appeals to the Board of Equalization (Mayor) (Referred to Policies and Procedures Committee)

MOTION: Glick moved to enact Ordinance 2004-05.

Assembly Member Glick said the Policies and Procedures Committee discussed the proposed changes with Assessor Shane Horan. Ms. Glick said two letters were received today regarding the possible amendments and postponement was discussed to further address these letters.

President Sprague called for public comment with none being offered.

MOTION: Superman moved to postpone Ordinance 2004-05 until April 20, 2004.

MOTION TO POSTPONE PASSED: Unanimous.

(8:20:42)

Ordinance 2003-19-37: Appropriating $161,809.88 to the Special Assessment Fund for Char Subdivision Natural Gas Line Utility Special Assessment District (Mayor) (Referred to Finance Committee)

MOTION: Moss moved to enact Ordinance 2003-19-37.

Assembly Member Moss stated this ordinance appropriated the funds to proceed with the assessment district.

President Sprague called for public comment with none being offered.

MOTION TO ENACT PASSED: Unanimous.

(8:23:10)

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) (Referred to Lands Committee)

Ordinance 2003-19-38 (Merkes) Substitute: 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) (Referred to Lands Committee)

MOTION: Martin moved to enact Ordinance 2003-19-38.

President Sprague called for public comment.

The following people spoke in favor of Ordinance 2003-19-38:

George Elser, PO Box 727, Sterling, AK. Mr. Elser, President of the Sterling Area Senior Citizens (SASC), said the organization had approximately 300 members.

Dillon Kimple, PO Box 13, Sterling, AK

Bill Lowe, PO Box 864, Sterling, AK

Judy Warren, PO Box 164, Sterling, AK, Director of the Sterling Senior Center

Will Josey, PO Box 881, Sterling, AK

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

MOTION: Martin moved to amend Ordinance 2003-19-38 by substitution.

VOTE ON MOTION TO AMEND

BY SUBSTITUTION: Unanimous.

MOTION: Moss moved to amend Ordinance 2003-19-38 (Substitute) as follows:

Title to read, "An Ordinance Authorizing the Acquisition of Lots 4, 5, 6, Block 2, Sumpter Subdivision for an addition to the Sterling Senior Center and Appropriating $61,000 [$60,600] to Acquire the Property and Authorizing the Sale of Subject Lots to the Sterling Area Senior Citizens"

Section 1 to read, "That the purchase of the following described real property for $60,000 plus closing costs not to exceed $1,000 [$600] is in the best interest of the borough..."

Section 2 to read, "That $61,000 [$60,600] is appropriated from the Land Trust Fund..."

Section 3 to read, "...for the price of $60,000 and pay up to $1,000 [$600] in closing costs, in accordance with the terms and conditions contained in this ordinance, and applicable provisions of KPB Chapter 17.10. In addition to the purchase price, the borough will pay for one-half closing costs, including without limitation all, escrow fees, title insurance charges, recording fees and bank charges up to a maximum of $1,000 [$600]..."

Section 5 to read, "Based on the foregoing, the mayor is hereby authorized, pursuant to KPB 17.10.100 (I) to sell the land described in Section 1 above to the SASC for $60,000 plus all closing costs incurred for both transactions covered by this ordinance subject to the terms and conditions of this ordinance..."

MOTION TO AMEND PASSED: Without objection.

MOTION: Moss moved to further amend Ordinance 2003-19-38 (Substitute) as follows:

Section 4 to read, "...The Assembly additionally makes exceptions to KPB 17.10.040 (requiring a statement of the proposed classification), KPB 17.10.090 (requiring classification prior to transfer), and KPB 17.10.110 (notice of land sale). [AND KPB 17.10.120 (C.3) (FINANCING TERM)]

Section 4.1. (D) to be deleted in its entirety:

[D. EXTENDING THE PERIOD FOR TOTAL PAYMENT FROM 10 YEARS TO 20 YEARS WILL ASSIST THE SASC BY CREATING AN AFFORDABLE MONTHLY PAYMENT AND WILL BENEFIT THE BOROUGH BY PROVIDING A SECURED INCOME STREAM AT THE RATE OF RETURN EXCEEDING THAT AT WHICH THE LAND TRUST FUND IS CURRENTLY INVESTED.]

Section 5 to read, "...The borough will finance this sale and the Senior Center will pay 10% down, the interest rate will be 6%, and the term of the loan will be 10 [20] years..."

Assembly Member Merkes spoke in opposition to the amendment.

VOTE ON MOTION TO AMEND:

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

No: Merkes, Long

Absent: None

MOTION TO AMEND PASSED: 7 Yes, 2 No, 0 Absent

(9:29:40)

The gavel was passed to Vice President Superman. President Sprague spoke in opposition to Ordinance 2003-19-38 (Substitute). The gavel was returned to President Sprague.

VOTE ON MOTION TO ENACT SUBSTITUTE

AS AMENDED:

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

No: Sprague

Absent: None

MOTION TO ENACT SUBSTITUTE

AS AMENDED PASSED: 8 Yes, 1 No, 0 Absent

(9:43:50)

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

[Clerks' Note: There was a motion to enact on the floor from the December 16, 2003 meeting.]

President Sprague opened the public hearing.

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

Henry Knacksteadt, 1602 Barabara Drive, Kenai, AK

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

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

Section 2(A) to read, "For purposes of taxation, aircraft that have been issued an N number by the Federal Aviation Administration ("FAA") by January 1 of the tax year shall be totally exempted from ad valorem taxes and shall be taxed [AT THE RATE OF 475 PER YEAR PER AIRCRAFT PER MANUFACTURER'S NUMBER OF AIRCRAFT ENGINES DESIGNED FOR THAT AIRCRAFT.] in accordance with the following flat tax schedule:

AIRCRAFT FLAT TAX SCHEDULE BASED ON (MGWIL)
Manufacturers Gross Weight with an Internal Load
Fixed Wing		Rotorcraft/Rotary Wing
Class Weight	Annual Tax	Class Weight	Annual Tax
1 Less than 3,000 lbs	$50	1 Less than 1,500 lbs	$100
2 3,000 to less than 5,000 lbs	$300	2 1,500 to less than 3,500	$600
3 5,000 to less than 15,000 lbs	$600	3 3,500 or more in weight	$1,000
4 15,000 or more in weight	$1,000

MOTION TO AMEND PASSED: Without objection.

MOTION: Moss moved to postpone Ordinance 2003-45 until the next scheduled hearing date of April 6, 2004.

MOTION TO POSTPONE AS AMENDED

PASSED: Unanimous.

(9:58:40)

UNFINISHED BUSINESS (Postponed Items)

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

[Clerk's Note: There was a motion to adopt on the floor from the February 17, 2004 meeting.]

Assembly Member Moss said there were no objections filed within the 30-day period.

President Sprague called for public comment with none being offered.

MOTION TO ADOPT PASSED: Unanimous.

(10:00:07)

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.]

Ordinance 2004-01(Martin Substitute): 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: Glick moved to amend Ordinance 2004-01 by substitution.

MOTION TO AMEND BY

SUBSTITUTION PASSED: Unanimous.

President Sprague called for public comment with none being offered.

MOTION TO ADOPT SUBSTITUTE PASSED: Unanimous.

(10:03:28)

UNFINISHED BUSINESS (Notice of Reconsideration)

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

[Clerk's Note: At the February 17, 2004 meeting, Mr. Sprague gave notice of reconsideration of Resolution 2004-021.]

The gavel was passed to Vice President Superman.

MOTION: Sprague moved to reconsider Resolution 2004-021.

VOTE ON MOTION TO RECONSIDER:

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

No: Fischer, Superman, Merkes

Absent: None

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

The gavel was returned to Assembly President Sprague.

Assembly Member Chay supplied information on the surrounding subdivisions of Moose Point and Grey Cliff.

(10:17:45)

Assembly Member Superman spoke in favor of Resolution 2004-021.

Mayor Bagley said any road improvements in the North Kenai area would not change property values, but would simply provide better access to recreational property.

VOTE ON MOTION TO ADOPT:

Yes: Fischer, Superman, Merkes, Long

No: Chay, Glick, Martin, Moss, Sprague

Absent: None

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

NEW BUSINESS (10:36:20)

Resolution 2004-031: Adopting a Public Safety Communications Strategic Plan for the Kenai Peninsula Borough (Mayor) (Referred to Policies and Procedures Committee)

MOTION: Glick moved to adopt Resolution 2004-031.

President Sprague called for public comment with none being offered.

MOTION: Glick moved to amend Resolution 2004-031 as follows:

Title to read, "A Resolution Adopting Section 5 of the [A] Public Safety Communications Strategic Plan for the Kenai Peninsula Borough as Recommended by Gary E. Boyd and Associates, Inc. and William L Doolittle and Associates, Inc."

MOTION TO AMEND PASSED: Without objection.

MOTION TO ADOPT AS AMENDED PASSED: Unanimous.

(10:46:11)

Request for Formal Assembly Objection to the Renewal of the Following Liquor Licenses Because of Unpaid Taxes Due the Borough (Referred to Finance Committee):

Business Name License Location

Moose Pass Inn Moose Pass, Alaska

Alaskalanes Kenai, Alaska

Old Town Village Restaurant Kenai, Alaska

MOTION: Moss moved to issue a formal letter of protest for the renewal of the following liquor licenses, due to unpaid taxes:

-Moose Pass Inn Moose Pass

-Alaskalanes Kenai

-Old Town Village Restaurant Kenai

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

MOTION PASSED: Unanimous.

PUBLIC COMMENTS AND PUBLIC PRESENTATIONS - None.

ASSEMBLY MEETING AND HEARING ANNOUNCEMENTS (10:48:30)

The next meeting of the Kenai Peninsula Borough Assembly was scheduled for April 6, 2004, at 7:00 p.m. in the Assembly Chambers, Borough Administration Building, Soldotna, Alaska.

ASSEMBLY COMMENTS (10:48:45)

Assembly Member Moss appreciated the support for the amendment to the aircraft flat tax ordinance.

Assembly Member Merkes thanked her fellow assembly members for their favorable consideration for the Sterling Area Senior Citizens.

Assembly Member Martin said there was a coastal dynamics workshop in Homer on March 17. Ms. Martin reminded everyone of the opportunity to teleconference with the Senate Finance Committee on March 17 from 1:30 - 4:00 p.m. and 7:00 to 9:00 p.m. at the Legislative Information Offices.

Assembly Member Long offered this thanks for the opportunity to travel to Washington, D.C.

Assembly President Sprague announced there was a St. Patrick's Day parade in Soldotna on March 17^th at 4:30 p.m. with fireworks later that evening at the Soldotna Sports Center.

ADJOURNMENT (10:52:55)

With no further business to come before the assembly, President Sprague adjourned the meeting at 10:52 p.m.

I certify the above represents accurate minutes of the Kenai Peninsula Borough Assembly meeting of March 16, 2004.

Linda S. Murphy, Borough Clerk

Approved by Assembly: