CALL TO ORDER

A Regular Meeting of the Kenai Peninsula Borough Assembly was held on June 1, 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 Alan Humphries, Soldotna Church of God.

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 Glick stated the Policies and Procedures Committee first addressed its agenda items and then discussed the assembly manual and business cards for assembly members.

Assembly Member Moss reported the Finance Committee discussed its lengthy agenda. The Committee met earlier in the day for a budget work session.

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

MOTION: Martin moved to authorize the assembly president to appoint Assembly Member Long to the Railbelt Community Task Force, relating to Senate Bill 395.

MOTION PASSED: Unanimous.

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

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

• Resolution 2004-055: Setting the Rate of Levy for Real and Personal Property Taxes for the Kenai Peninsula Borough and for Service Areas Within the Borough for the Tax Year 2004 (Mayor) (Referred to Finance Committee)
• Petition to vacate a portion of Lewis Street (name changed to Idaho Street by Resolution No. 2003-13) and associated utility easements as dedicated by Brown's Acres Subdivision No Two (Plat KN-85-49) and vacate Scenic Street and any associated utility easements as dedicated by Scenic Haven Subdivision Part One (Plat KN 83-258); within Section 25, Township 5 North, Range 10 West, Seward Meridian, Alaska; and within the Kenai Peninsula Borough; KPB File 2004-093 (Referred to Lands Committee)

[Clerk's Note: The Planning Commission approved the referenced vacation by unanimous consent during its regularly scheduled May 10, 2004 meeting.]

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.

• May 18, 2004 Regular Assembly Meeting Minutes
• May 18, 2004 Board of Equalization Meeting Minutes
• Resolution 2004-052: Authorizing Award of a Contract for Susan B. English School (Seldovia) Natatorium Wall Resurfacing and Sound Treatment (Mayor) (Referred to Finance Committee)

• Resolution 2004-053: Authorizing Award of Contract for Beluga Landfill Operations and Maintenance (Mayor) (Referred to Finance Committee)

• Resolution 2004-054: Authorizing the Acceptance of Late Filed Senior Citizen and Disabled Veteran Exemption Applications (Mayor) (Referred to Policies and Procedures Committee)

• Resolution 2004-056: Transferring Funds Between Divisions to Cover Health Insurance Costs in Excess of Budgeted Amounts (Mayor) (Referred to Finance Committee)
• Ordinance 2003-19-51: Accepting and Appropriating $7,100 from the Alaska Division of Homeland Security and Emergency Management for the Kenai Peninsula Borough Local Emergency Planning Committee (Mayor) (Shortened Hearing on 06/15/04) (Referred to Finance Committee)
• Ordinance 2003-19-52: Appropriating Supplemental Funding in the Amount of $87,500 to Cover Costs Associated with Board of Equalization Hearings (Mayor) (Shortened Hearing on 06/15/04) (Referred to Finance Committee)
• Ordinance 2003-19-53: Accepting and Appropriating a Grant from the Alaska Homeland Security and Emergency Management Division in the Amount of $724,924 for Purchase of Communications Equipment (Mayor) (Hearing on 07/06/04) (Referred to Finance Committee)
• Ordinance 2003-19-54: Appropriating Supplemental Funding to Cover Health Insurance Costs in Excess of Budgeted Amounts (Mayor) (Shortened Hearing on 06/15/04) (Referred to Finance Committee)
• Ordinance 2004-18: Authorizing the Lease of Government Lot 1, ASLS No. 2002-046, According to Plat No. 2003-6 Seward Recording District at Other Than Fair Market Value to the Hope/Sunrise Volunteer Fire Department (Mayor) (Hearing on 07/06/04) (Referred to Lands Committee)
• Ordinance 2004-20: Extending the Deadline in Ordinance 2001-16 Regarding Certain Grazing Leases (Mayor) (Hearing on 07/06/04) (Referred to Lands Committee)
• Petition to vacate Sunbonnet Drive and associated public utility easements, dedicated by Strawberry Ridge Unit 1 (Plat HM 77-6); within Section 1, Township 6 South, Range 14 West, Seward Meridian, Alaska; and within the Kenai Peninsula Borough; KPB File 2004-08 (Referred to Lands Committee)

[Clerk's Note: The Planning Commission approved the referenced vacation by unanimous consent during its regularly scheduled May 10, 2004 meeting.]

President Sprague called for public comment on consent agenda 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 (7:25:55)

Mike Peek, 53687 Ray Court, Nikiski, AK, spoke about the crowded parking conditions at the end of the North Road.

Ruby Kime, Alice Avenue, Ninilchik, AK, complimented Bill Holloway and the GIS staff for their assistance with mapping services. She also noted that the redesign of the Clerk's office provided better public access and a more efficient work space for staff.

REPORTS OF COMMISSIONS AND COUNCILS - None.

MAYOR'S REPORT (7:32:05)

Spruce Bark Beetle Mitigation Program:

• Approval of contract with Alaska Map Company for GIS and Data Base Training and Support for Spruce Bark Beetle Mitigation Program
• Approval of contract with Beaver Wood Chipping for Tustumena Lake ROW Project

Approval of bid award to Smith Well Drilling, Inc. for Water Well Drilling at Ninilchik School 2004

PUBLIC HEARINGS ON ORDINANCES

(7:32:40) Ordinance 2004-10: Establishing the Nikiski Law Enforcement Service Area (Superman) (Final Hearing) (Referred to Policies and Procedures Committee)

[Clerk's Note: There was a motion to enact on the floor from the May 18, 2004 meeting.]

President Sprague called for public comment.

The following people spoke in favor of Ordinance 2004-10:

Mike Peek, 53687 Ray Court, Nikiski, AK

Phil Nash, PO Box 1545, Kenai, AK

Sherry Heath, 47714 Interlake Drive, Nikiski, AK

Brian Heath, 44030 Stipend Circle, Nikiski, AK

Wayne Floyd, 47110 Autumn Road, Nikiski, AK

Vicki Pate, PO Box 7447, Nikiski, AK, was pleased to have this issue placed before the voters, but felt the proposed area was too large and it would be too costly to the service area residents.

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

(7:48:15)

Assembly Member Superman read aloud his memo which explained the initial process leading to the introduction of Ordinance 2004-10.

MOTION TO AMEND: Superman moved to amend Ordinance 2004-10 as follows:

Section 1 to read, "16.80.070. Board-Vacancies--Filling. "...to fill the unexpired term or for a three-year term if no unexpired term remains. The clerk shall provide at least twenty-one days' advance public notice [OF] before filling the vacancy..."

"16.080.090. Personnel system--Rules and regulations. Personnel employed by the Nikiski Law Enforcement Service Area, if any, shall be employees of the Kenai Peninsula Borough. All such personnel employed as police officers must meet the minimum standards of the Alaska Police Standards Council pursuant to Alaska Statutes Title 18 for employment as a non-probationary police officer."

MOTION TO AMEND PASSED: Unanimous.

MOTION TO AMEND: Superman moved to further amend Section 1 to read, "16.80.120 Chief law enforcement officer [DIRECTOR]--Appointment, qualifications, and removal. Unless otherwise provided for by contract, or by election, the chief law enforcement officer shall be appointed by the mayor from the list of most qualified candidate or candidates nominated by the service area board after their consideration of applications received in response to public notice of vacancies. The chief law enforcement officer must have received either an intermediate or an advanced certificate from the Alaska Police Standards Council. The tenure of this office [THESE OFFICES] shall be based upon good and faithful performance of the required duties assigned to this position [THESE POSITIONS]. The officer [DIRECTOR] so appointed or elected shall be subject to removal by the mayor only upon recommendation of the board. The officer [DIRECTOR] shall administer policy as set by the board."

"16.80.130 [DIRECTOR] Chief law enforcement officer [ADMINISTRATIVE OFFICERS]--Accountability. The chief [DIRECTOR OR LEAD CONTRACT] law enforcement officer of the service area, whether hired by contract, by election, or by appointment, shall be held accountable to the service area board and shall make written and verbal reports to the board as required by the board. All other service area employees shall be accountable to the [DIRECTOR OR LEAD CONTRACT] chief law enforcement officer only [OR TO SUCH ADMINISTRATIVE OFFICERS AS ARE DESIGNATED BY THE SERVICE AREA BOARD]."

MOTION TO AMEND PASSED: Without objection.

MOTION TO POSTPONE: Merkes moved to postpone Ordinance 2004-10 until the June 15, 2004 meeting.

VOTE ON MOTION TO POSTPONE:

Yes: Fischer, Merkes, Moss, Sprague

No: Chay, Glick, Martin, Long, Superman

Absent: None

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

MOTION TO AMEND: Glick moved to amend Section 16.80.120 as follows:

"Unless otherwise provided for by contract, [OR BY ELECTION,] the chief law enforcement officer shall be appointed by the mayor from the list of most qualified candidate or candidates nominated by the service area board after their consideration of applications received in response to public notice of vacancies. The chief law enforcement officer must have received either an intermediate or an advanced certificate from the Alaska Police Standards Council. The tenure of this office shall be based upon good and faithful performance of the required duties assigned to this position. The officer so appointed [OR ELECTED] shall be subject to removal by the mayor only upon recommendation of the board...."

MOTION TO AMEND PASSED: Without objection.

The gavel was passed to Vice President Superman. President Sprague made the following amendment.

MOTION TO AMEND: Sprague moved to amend Section 1 16.80.120 as follows:

"The officer so appointed shall be subject to removal by the mayor [ONLY UPON RECOMMENDATION OF THE BOARD]."

The gavel was passed to President Pro Tem Moss. Assembly Member Superman spoke against the amendment. The gavel was returned to Vice President Superman.

MOTION TO AMEND: Long proposed to further amend Section 1 16.80.120 by adding a new sentence to follow the Sprague amendment:

"The service area board may independently make a recommendation to the mayor regarding the suspension or discharge of the chief law enforcement officer, however, such suspension or discharge remains within the sole discretion of the mayor."

MOTION TO AMEND PASSED (Long Amendment): Without objection.

Clerk's Note: The Sprague amendment, as amended, now read:

"The officer so appointed shall be subject to removal by the mayor [ONLY UPON RECOMMENDATION OF THE BOARD]. The service area board may independently make a recommendation to the mayor regarding the suspension or discharge of the chief law enforcement officer, however, such suspension or discharge remains within the sole discretion of the mayor."

MOTION TO AMEND PASSED (Sprague Amendment): Without objection.

The gavel was returned to Assembly President Sprague.

MOTION TO AMEND: Long moved to amend Section 1, 16.80.120 to read as follows:

"Unless otherwise provided for by contract , or by election, the chief law enforcement officer shall be appointed by the mayor from the list..."

MOTION TO AMEND PASSED: Without objection.

VOTE ON MOTION TO ENACT AS AMENDED:

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

No: Moss

Absent: None

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

(9:07:00)

Ordinance 2004-13: Amending KPB 5.18.430, Sales Tax Computation - Maximum Tax, by Increasing it from $500 to $1,000 (Mayor) (Final Hearing) (Referred to Policies and Procedures Committee)

[Clerk's Note: There was a motion to enact on the floor from the May 18, 2004 meeting.]

President Sprague called for public comment.

The following people spoke in favor of Ordinance 2004-13:

Doug Stark, 2073 Horizon Court, Homer, AK, Council Member, City of Homer

Dean Baugh, 2070 Horizon Court, Homer, AK, Finance Director, City of Homer

Wayne Floyd, 47110 Autumn Road, Nikiski, AK

The following people spoke in opposition to Ordinance 2004-13:

Don Johnson, PO Box 876, Soldotna, AK

Phil Nash, PO Box 1545, Kenai, AK

Robert Molloy, 110 S. Willow Street, Suite 101, Kenai, AK

Christine Schmidt, 110 S. Willow Street, Suite 101, Kenai, AK

Ruby Kime, Alice Avenue, Ninilchik, AK

Vicki Pate, PO Box 7447, Nikiski, AK

Herman Fandel, 702 Lawton Drive, Kenai, AK

Fred Sturman, PO Box 513, Soldotna, AK

James Price, 49185 Island Lake Road, Nikiski, AK

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

MOTION TO AMEND: Martin moved to amend Ordinance 2004-13 as follows:

Add a new Section 2 to read, "That on or before May 1, 2006, the administration shall provide a report to the assembly comparing sales data and sales tax information concerning businesses subject to the sales tax collection requirements for the calendar year 2005. Additionally, the administration shall provide any other information that it deems relevant to a determination of the effect that this ordinance may have on businesses within the borough."

And renumber the remaining section accordingly.

VOTE ON MOTION TO AMEND:

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

No: Chay, Fischer, Merkes

Absent: None

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

MOTION TO AMEND: Merkes moved to amend Ordinance 2004-13 as follows:

Add a new Section 4 to read, "This ordinance shall expire on December 31, 2006, unless renewed by ordinance of the assembly."

VOTE ON MOTION TO AMEND:

Yes: Merkes, Superman

No: Chay, Fischer, Glick, Long, Martin, Moss, Sprague

Absent: None

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

MOTION TO POSTPONE: Chay moved to postpone Ordinance 2004-13 until June 14, 2004.

Assembly Member Superman spoke in opposition to postponement.

VOTE ON MOTION TO POSTPONE:

Yes: Chay, Fischer, Glick, Merkes

No: Long, Martin, Moss, Superman, Sprague

Absent: None

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

MOTION TO AMEND: Superman moved to add a new Section 4 to read, "This ordinance shall sunset on June 30, 2006, unless renewed by ordinance of the assembly."

VOTE ON MOTION TO AMEND:

Yes: Chay, Fischer, Merkes, Superman

No: Glick, Long, Martin, Moss, Sprague

Absent: None

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

Assembly Members Long, Superman and Martin spoke in favor of Ordinance 2004-13.

Assembly Members Chay, Fischer and Merkes spoke in opposition to Ordinance 2004-13.

The gavel was passed to Vice President Superman. President Sprague spoke in opposition to Ordinance 2004-13. The gavel was returned to Assembly President Sprague.

VOTE ON MOTION TO ENACT AS AMENDED:

Yes: Long, Martin, Moss, Superman

No: Chay, Glick, Fischer, Merkes, Sprague

Absent: None

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

Assembly Member Superman gave notice of reconsideration of Ordinance 2004-13.

(11:00:17)

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) (Referred to Lands Committee)

MOTION: Martin moved to enact Ordinance 2004-14.

Assembly Member Martin said some conditional use permits simply required more than two years to carry out.

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

MOTION TO AMEND: Martin moved to amend Ordinance 2004-14 as follows:

Add a new final whereas to read, "the Planning Commission conducted a public hearing on May 10, 2004 and recommended enactment of this ordinance by unanimous consent;"

MOTION TO AMEND PASSED: Without objection.

MOTION TO AMEND: Martin moved to amend Ordinance 2004-14 as follows:

Section 1 21.18.080 (A) to read, "...The planning commission shall adopt findings consistent with KPB 21.18.010 to support the issuance of a permit, or an extension thereof, totaling more than two years from the date of issuance. Prior to its expiration date, a conditional use permit [ISSUED FOR UP TO ONE YEAR] may be extended for up to twelve (12) months by the planning director upon written request..."

MOTION TO AMEND PASSED: Without objection.

MOTION TO ENACT AS AMENDED PASSED: Unanimous.

(11:04:42)

Ordinance 2004-16: Revising Right-of-Way Permit Review and Appeal Procedures (Martin) (Referred to Lands Committee)

MOTION: Martin moved to enact Ordinance 2004-16.

Assembly Member Martin said Ordinance 2004-16 allowed a permitee to appeal to the Road Service Area Board before going to court on such matters.

President Sprague called for public comment with none being offered.

MOTION TO AMEND: Martin moved to amend Ordinance 2004-16 as follows:

Add a new final whereas clause to read, "at its May 12, 2004 meeting, the RSA board unanimously voted in favor of enactment of Ordinance 2004-16;"

MOTION TO AMEND PASSED: Without objection.

MOTION TO ENACT AS AMENDED PASSED: Unanimous.

(11:07:48)

MOTION: Martin moved to suspend the rules and address Item P.4(b), Petition to Vacate a Portion of Lewis Street, as the next item of business.

MOTION PASSED: Unanimous.

MOTION: Martin moved to suspend the rules and extend the legislative deadline by one half hour to Midnight.

MOTION PASSED: Unanimous.

(11:09:00)

Petition to vacate a portion of Lewis Street (name changed to Idaho Street by Resolution No. 2003-13) and associated utility easements as dedicated by Brown's Acres Subdivision No. Two (Plat KN-85-49) and vacate Scenic Street and any associated utility easements as dedicated by Scenic Haven Subdivision Part One (Plat KN 83-258); within Section 25, Township 5 North, Range 10 West, Seward Meridian, Alaska; and within the Kenai Peninsula Borough; KPB File 2004-093 (Referred to Lands Committee)

[Clerk's Note: The Planning Commission approved the referenced vacation by unanimous consent during its regularly scheduled May 10, 2004 meeting.]

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

Assembly Member Martin stated a preliminary plat, showing an alternate access route, did not accompany the request to vacate.

President Sprague called for public comment with none being offered.

The gavel was passed to Vice President Superman. President Sprague was concerned that a right-of-way would be determined when the parcel was subdivided in the future based on the terrain, as shown in Finding # 10. The gavel was returned to Assembly President Sprague.

Assembly Member Merkes spoke in opposition to the vacation as granted by the Planning Commission.

VOTE ON MOTION TO VETO THE ACTION

OF THE PLANNING COMMISSION:

YES: Chay, Fischer, Long, Martin, Merkes, Moss, Sprague

No: Glick, Superman

Absent: None

MOTION TO VETO ACTION OF

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

(11:14:50)

Ordinance 2004-19: Appropriating Funds for the Fiscal Year 2004-2005 (Mayor) (Final Hearing) (Referred to Finance Committee)

[Clerk's Note: There was a motion to enact on the floor from the May 18, 2004 meeting.]

Assembly Member Moss said the Assembly had received notice that afternoon from the Finance and Assessing Departments that there had been a substantial reduction in the valuation of oil properties within the borough, reducing the anticipated revenue to the general fund by approximately $500,000.

President Sprague called for public comment.

The following people spoke in favor of dedicating funds for the North Peninsula Recreation Service Area to renovate Nikiski Elementary School for use as a community center:

Beth Jones, Nikishka Road, Nikiski, AK

Don Jones, Nikishka Road, Nikiski, AK

Albert Parra, 49680 Duck Lake Court, Nikiski, AK

Rachel Parra, 49680 Duck Lake Court, Nikiski, AK

Wayne Floyd, 47110 Autumn Road, Nikiski, AK

Patty Floyd, 47110 Autumn Road, Nikiski, AK

Jane Griffel, 47743 March Road, Nikiski, AK

Mike Peek, 53687 Ray Court, Nikiski, AK

Suzanne Strickland, 44855 Tideplace, Nikiski, AK

Sherry Heath, 47714 Interlake Drive, Nikiski, AK

Karen Kester, Mile 23.4 Kenai Spur Highway, Nikiski, AK

The following person requested any funding for a Nikiski community center be held in a contingency account until the issue was voted upon by the residents of the service area:

Vicki Pate, PO Box 7447, Nikiski, AK

(11:56:30)

MOTION: Long moved to set a special meeting of the assembly on Monday, June 14, 2004 at 2:00 p.m. to address Ordinance 2004-19, Ordinance 2004-13, and Resolution 2004-055.

MOTION PASSED: Unanimous.

ASSEMBLY MEETING AND HEARING ANNOUNCEMENTS

• Board of Equalization June 8, 2004 9:00 AM Soldotna
• Special Assembly Meeting June 14, 2004 2:00 PM Soldotna

• The next meeting of the Kenai Peninsula Borough Assembly was scheduled for June 15, 2004, at 7:00 p.m. in the Assembly Chambers, Borough Administration Building, Soldotna, Alaska.\

  ADJOURNMENT (11:59:00)

Having nearly reached the legislative deadline of Midnight, President Sprague adjourned the meeting at 11:59 p.m.

I certify the above represents accurate minutes of the Kenai Peninsula Borough Assembly meeting of June 1, 2004.