CALL TO ORDER

A Regular Meeting of the Kenai Peninsula Borough Assembly was held on May 4, 2004, in the Council Chambers, Seward City Hall, Seward, Alaska. President Sprague called the meeting to order at 7:03 p.m.

PLEDGE OF ALLEGIANCE AND INVOCATION

The Pledge of Allegiance was recited followed by the invocation given by Vice President Superman.

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 (Tape 1A, 60)

Assembly Member Moss reported the Finance Committee first heard a presentation from Finance Director Scott Holt on the Fiscal Year 2004-2005 proposed budget. The committee then discussed its lengthy agenda.

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

Assembly Member Martin said the Lands Committee discussed its agenda items. Assembly Member Long reported on Senate Bill 395 and House Bill 560 which would exempt the Alaska Railroad from all local platting, planning and land use regulations.

MOTION: Martin moved to authorize the assembly president to send a letter to the legislature expressing concerns with granting the Alaska Railroad certain exemptions relating to its real estate holdings, as set forth in SB 395 and HB 560.

MOTION PASSED: Unanimous.

APPROVAL OF AGENDA AND CONSENT AGENDA (Tape 1A, 310)

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The following item was withdrawn at the request of the sponsor:

• Ordinance 2003-19-49: Amending Ordinance 2001-19-35 by Authorizing the Use of Spruce Bark Beetle Funds for Utility Right of Way Clearing in the Area South of the Kenai River (Mayor) (Shortened Hearing on 05/18/04) (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.

• April 20, 2004 Regular Assembly Meeting Minutes
• April 21, 2004 Board of Equalization Hearing Minutes
• Resolution 2004-045: Authorizing Award of a Contract for the Seward Middle School Phase 2 Site Finishing and Building Construction (Mayor) (Referred to Finance Committee)
• Resolution 2004-046: Authorizing Award of a Contract for the Soldotna Middle School Fire System (Mayor) (Referred to Finance Committee)
• Resolution 2004-047: Determining the Amount to be Provided From Local Sources for School Purposes During Fiscal Year 2004-2005 (Mayor) (Referred to Finance Committee)
• Ordinance 2003-19-48: Accepting and Appropriating $168,000 from the Alaska Department of Environmental Conservation to Purchase Decontamination Showers and Trailers and Associated Equipment (Mayor) (Shortened Hearing on 05/18/04) (Referred to Finance Committee)
• Ordinance 2004-13: Amending KPB 5.18.430, Sales Tax Computation - Maximum Tax, by Increasing it from $500 to $1,000 (Mayor) (Hearings on 05/18/04 & 06/01/04) (Referred to Policies and Procedures Committee)
• Ordinance 2004-14: Amending KPB 21.18.080 to Increase Authorized Conditional Use Permit Terms from Two Years to a Maximum of Six Years (Mayor) (Hearing on 06/01/04) (Referred to Lands Committee)
• Ordinance 2004-19: Appropriating Funds for the Fiscal Year 2004-2005 (Mayor) (Hearings on 05/18/04 & 06/01/04) (Referred to Finance Committee)
• Petition to vacate the entire Forestline Drive and associated utility easements as dedicated and granted by Forestline Subdivision (Plat KN 79-194 and 83-230) and Cozy Corner Subdivision (Plat KN 84-193); and vacate that portion of Aspen Drive and associated utility easements as dedicated and granted by Forestline Subdivision; within Section 9, Township 5 North, Range 9 West, Seward Meridian, Alaska; and within the Kenai Peninsula Borough; KPB File 2004-061; Location: Robinson Loop (Referred to Lands Committee)

[Clerk's Note: The Planning Commission approved the referenced vacation by unanimous consent subject to the following staff recommendation during its regularly scheduled April 12, 2004 meeting. Staff Recommendations: Submittal of a final plat in accordance with Chapter 20 of the KPB Code plat within one year of vacation approval.]

• Petition to vacate a portion of High Seas Court and associated utility easements dedicated by Gillean's Inlet View Subdivision Part One (Plat HM 86-18); within Section 8, Township 5 South, Range 15 West, Seward Meridian, Alaska; and within the Kenai Peninsula Borough; KPB File 2004-059; Location: East of Old Sterling Highway in Anchor Point (Referred to Lands Committee)

[Clerk's Note: The Planning Commission approved the referenced vacation by unanimous consent during its regularly scheduled April 12, 2004 meeting]

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

AGENDAS APPROVED AS AMENDED: Unanimous.

COMMENDING RESOLUTIONS AND PROCLAMATIONS (Tape 1A, 380)

Mayor Bagley declared the Month of May 2004 as Motorcycle Awareness Month.

Assembly Member Long presented commending resolutions to Sarah Glaser and Chelsea Lechner for receiving regional, state and national recognition in the National PTA Reflections Program.

PRESENTATIONS WITH PRIOR NOTICE (Tape 1A, 485)

Finance Director Scott Holt presented the Fiscal Year 2004-2005 proposed budget.

PUBLIC COMMENTS ON ITEMS NOT APPEARING ON THE AGENDA (Tape 1A, 675)

Seward City Council Member Bob Valdatta, PO Box 1267, Seward, AK, welcomed the assembly to Seward. Mr. Valdatta said he fully utilized the borough office located on the second floor of Seward City Hall and thanked the Mayor and Assembly for providing this service to the community.

Matt Adams, 13296 Bruno Road, Seward, AK, Captain of the Seward SeaHawks Cross Country Track Team, asked for assistance with a new training/running trail for the cross country team.

Flip Flodager, PO Box 1022, Seward, AK, said the cross country team was told by Gary Lamb, KPB Risk Manager, that proper insurance was required and the project was halted.

Roger Steinbrecher, 2614 Birch, Seward, AK, former Seward High School athletic director said cross country running was very important in Seward.

The following students also spoke in favor of a cross country trail system:

Jolie Glaser, 32262 Lakestar Lane, Moose Pass, AK

Heather Apperson, 1916 Dora Way, Seward, AK

Monica Bennick, 210 Bluefield Drive, Seward, AK

Kip Dixon, Moose Horn Drive, Seward, AK

Sarah Glaser, 32262 Lakestar Lane, Moose Pass, AK

David Apperson, 1916 Dora Way, Seward, AK

REPORTS OF COMMISSIONS AND COUNCILS

MAYOR'S REPORT (Tape 1B, 405)

Spruce Bark Beetle Mitigation Program:

• Approval of contract with Segesser Surveys for Sprucewood Surveying project

• Approval of contract with Norris and Sons for Calcium Chloride Application - North Region
• Approval of contract with 2 Bears Trucking for Calcium Chloride Application - Central & South Region
• Approval of contract with Metco for Calcium Chloride Application - East Region
• Approval of contract with Integrity Surveys for Surveying and Platting of Exit Glacier Subdivision No. 2
• Approval of contract with Rider Hunt Levett Bailey Ltd. for Third Party Cost Estimation Services - CPGH Expansion, Remodel and Renovation
• Approval of contract with Segesser Surveys, Inc. for Surveying and Platting Lakeview Estates Subdivision Addition No. 1
• Approval to waive formal bidding procedures and utilize Trane Unit Ventilators for Kenai Central High School
• Approval to waive formal bidding procedures and utilize Beluga Lake Lodge for appraiser lodging during the reappraisal of the Homer area

Mayor Bagley reported on his recent trip to Seldovia to view the proposed site for the new Seldovia Landfill.

PUBLIC HEARINGS ON ORDINANCES

(Tape 1B, 388) Ordinance 2003-19-42: Appropriating $120,000 from the General Fund for the Replacement of the Gymnasium Floor at Kenai Central High School (Mayor) (Referred to Finance Committee)

Assembly Member Moss stated he had a conflict of interest as he worked for a company that intended to bid on the project. President Sprague ruled that a conflict did exist, and Mr. Moss left the room for the discussion and vote on Ordinance 2003-19-42.

MOTION: Superman moved to enact Ordinance 2003-19-42.

President Sprague called for public comment with none being offered.

VOTE ON MOTION TO ENACT:

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

No: None

Abstain: Moss

Absent: None

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

(Tape 1B, 348)

Ordinance 2003-19-43: Appropriating $293,091.15 from South Peninsula Hospital Service Area Fund Balance for Interest Amount Due on the South Peninsula Hospital Service Area General Obligation Bonds That Were Sold as Part of the Hospital Improvement Project (Mayor) (Referred to Finance Committee)

MOTION: Moss moved to enact Ordinance 2003-19-43.

Assembly Member Moss said the bond issue was approved by the voters of the service area in July, 2003 and this was the first interest payment due.

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

MOTION TO AMEND: Moss moved to amend Ordinance 2003-19-43 as follows:

Final Whereas to read, "The SPH service area board [AT ITS BOARD MEETING] authorized the use of $293,091.15 from the service area fund balance for this interest payment; and"

MOTION TO AMEND PASSED: Without objection.

MOTION TO ENACT AS AMENDED PASSED: Unanimous.

(Tape 1B, 300)

Ordinance 2003-19-44: Appropriating $30,000 for Cook Inlet Aquaculture Association for a Coho Enhancement Project in the Homer and Seward Areas (Martin, Moss, Long) (Referred to Finance Committee)

MOTION: Moss moved to enact Ordinance 2003-19-44.

Assembly Member Moss stated this was an ongoing project in both the Homer and Seward areas. Ordinance 2003-19-44 dealt with a late-run Coho project that promoted tourism and recreational fishing on the Southern and Eastern Peninsula. Mr. Moss noted that local matching funds had been raised in both communities.

President Sprague opened the public comment period.

The following people spoke in favor of Ordinance 2003-19-44:

Jim McCracken, Lowell Point, AK, spoke on behalf of the Citizens' Salmon Enhancement Project

Diane Debuke (sp), Flora at Sea, Seward Small Boat Harbor, Dock D-32

Bob Valdatta, PO Box 1267, Seward, AK, Vice Chair of the Citizens' Salmon Enhancement Project

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

Assembly Member Glick stated the Borough Code contained procedures for funding economic development projects and suggested those procedures be followed in the future.

MOTION TO ENACT PASSED: Unanimous.

(Tape 2, 19)

Ordinance 2004-08: Authorizing a Land Exchange with Offshore Systems - Kenai to Acquire Land to Support the North Peninsula Recreational Service Area Cross-Country Ski Trail (Mayor) (Referred to Lands Committee)

MOTION: Martin moved to enact Ordinance 2004-08.

Assembly Member Martin said this land exchange began in 2001 with property from a borough outcry auction.

President Sprague called for public comment with none being offered.

MOTION TO AMEND: Martin moved to amend Ordinance 2004-08 as follows:

Final Whereas to read, "the KPB Planning Commission at its regularly scheduled meeting of April 12, 2004 recommended enactment by unanimous consent;"

MOTION TO AMEND PASSED: Without objection.

MOTION TO ENACT AS AMENDED PASSED: Unanimous.

PUBLIC COMMENTS AND PUBLIC PRESENTATIONS

ASSEMBLY MEETING AND HEARING ANNOUNCEMENTS (Tape 2, 88)

• Proposed Nikiski Law Enforcement Service Area Public Hearing: 05/10/04, 7:00 p.m.,at Nikiski Elementary School, with Members Chay, Click, Superman and Sprague to attend.

• The next meeting of the Kenai Peninsula Borough Assembly was scheduled for May 18, 2004, at 7:00 p.m. in the Assembly Chambers, Borough Administration Building, Soldotna, Alaska.

• �Budget Work Sessions: May 17, May 18 and June 1

ASSEMBLY COMMENTS (Tape 2, 35)

Mayor Bagley said tonight was the first he heard about the trails issue in Seward and would work to resolve it. He would offer a report at the next assembly meeting.

The entire assembly expressed its appreciation to the City of Seward for the hospitality extended during the visit to the Eastern Peninsula.

Assembly Member Martin reported on the visit to Seldovia with Mayor Bagley and said a follow-up trip was planned.

Assembly Member Moss announced the Homer Shore Bird Festival was scheduled for May 7-9, 2004.

Borough Clerk Linda Murphy thanked City Clerk Jean Lewis for her assistance with the assembly's visit to Seward.

ADJOURNMENT (Tape 2, 272)

With no further business to come before the assembly, President Sprague adjourned the meeting at 8:41 p.m.

I certify the above represents accurate minutes of the Kenai Peninsula Borough Assembly meeting of May 4, 2004.

Approved by Assembly: