CALL TO ORDER

A Regular Meeting of the Kenai Peninsula Borough Assembly was held on September 21, 2004, in the Council Chambers, City Hall, Homer, 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 David Taylor, Christian Community Church.

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 (7:04:33)

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

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

Assembly Member Glick said the Policies and Procedures Committee met and discussed its agenda items.

Assembly Member Long stated the Legislative Committee met to discuss its brief agenda.

APPROVAL OF AGENDA AND CONSENT AGENDA (7:19:40)

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 regular agenda to the consent agenda:

• Resolution 2004-093: Supporting the Soldotna Area Senior Citizens, Inc. Pre-Development Grant Application to the Alaska Housing Finance Corporation (Sprague) (Referred to Policies and Procedures Committee)

[Clerk's Note: Assembly Member Fischer stated he served on the Soldotna Area Senior Citizens, Inc. Board of Directors and declared a conflict of interest with respect to Resolution 2004-093. President Sprague ruled a conflict did exist and Mr. Fischer abstained from voting on Resolution 2004-093.]

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.

• August 17, 2004 Regular Meeting Minutes (as corrected)
• September 7, 2004 Regular Meeting Minutes (as corrected)

• Resolution 2004-090: Award of a Contract for Vehicle Maintenance Services for Central Emergency Services (Mayor) (Referred to Finance Committee)
• Resolution 2004-091: Modifying Authorized Positions in the Maintenance Department (Mayor) (Referred to Policies and Procedures Committee)
• Resolution 2004-092: Authorizing the Lease of Warehouse and Yard Space at Lot 1, Block B, Nikiski Village Subdivision, KN 1585, for Storage of Nikiski Fire Department Apparatus (Mayor) (Referred to Lands Committee)

[Clerk's Note: The following technical amendments were made to Resolution 2004-092:

Sixth Whereas to read, "at its meeting of August 11, 2004, the Nikiski Fire Service Area Board recommended rental of the warehouse by unanimous consent; and"

Final Whereas to read, "the KPB Planning Commission at it regularly scheduled meeting of September 13, 2004 recommended adoption by unanimous consent;"

• Resolution 2004-093: Supporting the Soldotna Area Senior Citizens, Inc. Pre-development Grant Application to the Alaska Housing Finance Corporation (Sprague) (Referred to Policies and Procedures Committee) (8 Yes, 0 No, 0 Absent, 1 Abstention [Fischer])
• Ordinance 2004-19-11: Accepting and Appropriating a Grant in the Amount of $6,000 from the Alaska Division of Homeland Security and Emergency Management for Preparing an All-Hazard Mitigation Plan (Mayor) (Shortened Hearing on 10/12/04) (Referred to Finance Committee)
• Ordinance 2004-19-12: Appropriating $37,500 in Supplemental Funding from the General Fund for the Solid Waste Capital Improvements Program, Tyonek Landfill - Burn Box Purchase, Transportation & Installation (Mayor) (Hearing on 10/26/04) (Referred to Finance Committee)
• Ordinance 2004-19-13: Authorizing the Acquisition of Lots 5, 6 & 7, Block 3, Hillcrest Subdivision, Plat No. KN 1514, Kenai Recording District for an Addition to the Central Emergency Services Facility and Appropriating $75,500 from the Land Trust Fund to Acquire the Property (Mayor) (Hearing on 10/26/04) (Referred to Lands Committee)
• Ordinance 2004-33: Adopting the 2004 Kenai Peninsula Borough All Hazard Mitigation Plan (Mayor) (Hearings on 10/12/04 & 10/26/04) (Referred to Policies and Procedures Committee)
• Ordinance 2004-34: Amending KPB 16.04.080 to Clarify Procedures Regarding Service Area Directors' Employment (Superman) (Hearing on 10/26/04) (Referred to Policies and Procedures Committee)
• Approving the Application for Restaurant Designation Permit filed by Quartz Creek Enterprises, Inc. d.b.a. Sunrise Inn in Cooper Landing, Alaska (Referred to Finance Committee)
• Confirming Appointments to Various Advisory Planning Commissions (Referred to Lands Committee)

Anchor Point Advisory Planning Commission:

• �Julie Engebretsen Seat D-term expiring September 30, 2007
• �Raymond Drake Seat E-term expiring September 30, 2007

Cooper Landing Advisory Planning Commission:

• �Robert T. Bear, Jr. Seat A-term expiring September 30, 2007
• �Carrie L. Williams Seat B-term expiring September 30, 2007
• �Dolores "Dodie" A. Wilson Seat G-term expiring September 30, 2007

Moose Pass Advisory Planning Commission:

• �Todd Petersen Seat B-term expiring September 30, 2005
• �Curt Jacobson Seat C-term expiring September 30, 2005
• �Jennifer Trudeau Seat G-term expiring September 30, 2007

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 (7:29:55

Lloyd Schade, 35250 Schade Drive, Homer, AK, offered a presentation, "East End Road, Then and Now," which highlighted the history and early development of East End Road.

Mary Griswold, PO Box 1417, Homer, AK, provided an update on the Kachemak Emergency Service Area.

PUBLIC COMMENTS ON ITEMS NOT APPEARING ON THE AGENDA (7:52:55)

Fred Sturman, PO Box 513, Soldotna, AK, discussed borough employee salary projections in relation to population and expenditure figures.

Lloyd Schade, 35250 Schade Drive, Homer, AK, spoke about wildland fires.

REPORTS OF COMMISSIONS AND COUNCILS - None.

MAYOR'S REPORT (8:00:54)

Approval of contract with FD Training Network for Advance Rapid Intervention Team Training for CES

Approval of contract with Jaffa Construction, Inc. for Boiler Re-tubing at Homer High School

Approval of contract with Johnson Surveying for staking, flagging and posting for sale signs for the Fall Land Sale Parcels

Approval of contract with Heat & Frost Insulation, Inc. for Boiler Room Insulation at Nikiski Elementary School

Approval of Request for Waiver of Formal Bidding Procedures and award contract to FNW/Ferguson for purchase of Snap-Tite® Culvert Lining for Homer High School

Approval of bid award to Fire Control Systems, Inc. for Hood and Duct Fire Suppression System Upgrades-2004 Project

Other

Litigation Status Report

Budget Revisions and Revenue - Expenditure Report - August 2004

Mayor Bagley said he traveled across Cook Inlet and toured the Williamsport-Pile Bay area.

PUBLIC HEARINGS ON ORDINANCES

(8:02:11)

Ordinance 2004-19-07: Appropriating $28,000 from the Equipment Replacement Fund to Purchase a Vehicle for the Planning Department (Mayor) (Referred to Finance Committee)

MOTION: Moss moved to enact Ordinance 2004-19-07.

Assembly Member Moss said the Planning Department's current vehicle maintenance costs were exceeding its value and a replacement was warranted.

President Sprague called for public comment with none being offered.

MOTION TO ENACT PASSED: Unanimous.

(8:05:35)

Ordinance 2004-19-09: Accepting and Appropriating a $50,000 State Grant and Transferring $10,000 to Update the Borough's Coastal Management Plan, and Authorizing Award of a Sole-Source Contract (Mayor) (Referred to Finance Committee)

MOTION: Moss moved to enact Ordinance 2004-19-09

Assembly Member Moss said the State of Alaska had revamped its overall coastal management plan, necessitating the Borough to update its plan by July of 2005.

President Sprague called for public comment with none being offered.

MOTION TO ENACT PASSED: Unanimous.

(8:08:50)

Ordinance 2004-19-10: Accepting and Appropriating a Grant from the United States Department of Agriculture, Forest Service, in the Amount of $70,000 for Forest Health Restoration (Mayor) (Referred to Finance Committee)

MOTION: Moss moved to enact Ordinance 2004-19-10.

Assembly Member Moss reported that reforestation and restoration were required under the Spruce Bark Beetle Mitigation Plan.

President Sprague called for public comment.

The following person spoke in opposition to Ordinance 2004-19-10:

Lloyd Schade, 35250 Schade Drive, Homer, AK

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

MOTION TO ENACT PASSED: Unanimous.

(8:12:54)

Ordinance 2004-29: Amending KPB 21.20.250 to Provide for a Reduced Filing Fee, a Payment Plan, or a Waiver of the Filing Fee for Appeals to the Board of Adjustment by Indigent Appellants (Mayor) (Referred to Policies and Procedures Committee)

MOTION: Glick moved to enact Ordinance 2004-29.

Assembly Member Glick said an amendment was forthcoming.

President Sprague called for public comment with none being offered.

MOTION TO AMEND: Glick moved to amend Ordinance 2004-29 as follows:

Section 1. B. to read, "...appeal fee would be a financial hardship for the appellant. Based upon the information provide, the fee may be reduced or waived in accordance with the following schedule:

Annual Income as a Percent Percent of Fee Reduction

of Current HHS Poverty

Guidelines for Alaska

1 - 100 % 100% Waiver

101 - 149 % 75% of Fee Waived

150 - 174 % 50% of Fee Waived

175 - 199 % 25% of Fee Waived

200 % plus No Waiver

Any appellant with income equal to or less than 200 percent of the Health & Human Services poverty guidelines for Alaska for the year in which the appeal is filed may apply for a payment plan in which the filing fee shall be paid in full within six months of the date of filing."

MOTION TO AMEND PASSED: Without objection.

MOTION TO ENACT AS AMENDED PASSED: Unanimous.

UNFINISHED BUSINESS (Postponed Items)

(8:24:12)

Resolution 2004-073: Authorizing the Assessor to Assess Low-Income Housing Tax Credit (LIHTC) Projects Based on Restricted Rents (Mayor) (Referred to Finance Committee)

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

Resolution 2004-073 (Mayor's) Substitute: Authorizing the Assessor to Assess Low-Income Housing Tax Credit (LIHTC) Projects Based on Restricted Rents (Mayor) (Referred to Finance Committee)

President Sprague called for public comment with none being offered.

KPB Director of Assessing Shane Horan was present and explained the low-income housing tax credit program. Mr. Horan said the original resolution included two other properties which had previously qualified for the tax credit program. The substitute resolution correctly listed the current properties seeking valuation on actual income rather than the full and true value approach.

MOTION TO AMEND: Moss moved to amend Resolution 2004-073 by substitution.

MOTION TO AMEND PASSED: Without objection.

Assembly Members Long and Martin spoke in favor or Resolution 2004-073 (Substitute).

Assembly Members Moss, Glick, Chay and Superman spoke in opposition to Resolution 2004-073 (Substitute).

VOTE ON MOTION TO ADOPT SUBSTITUTE:

Yes: Long, Martin, Merkes

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

Absent: None

MOTION TO ADOPT SUBSTITUTE FAILED: 3 Yes, 6 No, 0 Absent

(8:56:20)

Resolution 2004-088: Supporting the Tsalteshi Trails Association 2004 Alaska Department of Natural Resources Recreation Trails Grant Application (Sprague) (Referred to Lands Committee)

[Clerk's Note: There was a motion to adopt on the floor from the September 7, 2004 meeting.]

Assembly Member Martin said an amendment would be made to Resolution 2004-088.

President Sprague called for public comment with none being offered.

MOTION TO AMEND: Martin moved to amend Resolution 2004-088 as follows:

Add a new final whereas to read, "the Planning Commission met on September 13, 2004, and recommended adoption by unanimous consent;"

MOTION TO AMEND PASSED: Without objection.

(8:59:14)

The gavel was passed to Vice President Superman. President Sprague noted he no longer served on the Tsalteshi Trails Association Board but was asked to seek assembly support for the grant application. The gavel was returned to Assembly President Sprague.

MOTION TO ADOPT AS AMENDED PASSED: Unanimous.

(9:01:07)

Ordinance 2004-19-03: Accepting and Appropriating Four Volunteer Fire Assistance Grants from the Alaska Department of Natural Resources (Mayor) (Referred to Finance Committee)

[Clerk's Note: There was a motion to enact on the floor from the September 9, 2004 meeting.]

President Sprague called from public comment with none being offered.

MOTION TO AMEND: Moss moved to amend Ordinance 2004-19-03 by deleting the final whereas in its entirety as shown below:

[WHEREAS, THE SERVICE AREA BOARDS OF DIRECTORS APPROVED ACCEPTANCE OF EACH GRANT AT A REGULAR BOARD MEETING AS FOLLOWS:

ANCHOR POINT FIRE AND EMERGENCY MEDICAL SERVICE AREA ON

BEAR CREEK FIRE SERVICE AREA ON AUGUST 10, 2004

KACHEMAK EMERGENCY SERVICE AREA ON JULY 22, 2004

NIKISKI FIRE SERVICE AREA ON AUGUST 11, 2004]

MOTION TO AMEND PASSED: Without objection.

MOTION TO ENACT AS AMENDED PASSED: Unanimous.

(9:02:50)

NEW BUSINESS

Resolution 2004-094: Urging the Alaska State Board of Fisheries to Provide Public Opportunity for Testimony in Soldotna at its Upcoming January Meeting (Superman, Fischer, Sprague) (Referred to Legislative Committee)

MOTION: Long moved to adopt Resolution 2004-094.

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

MOTION TO AMEND: Fischer moved to amend Resolution 2004-094 as follows:

New Section 2 to read, "The Alaska State Board of Fisheries is strongly encouraged to hold committee meetings in the Kenai/Soldotna area concerning Kenai River sockeye, kings and coho."

New Section 3 to read, "The Alaska State Board of Fisheries is strongly encouraged to arrange for deliberations to be available in the Kenai/Soldotna area through video conferencing."

And to renumber the following section accordingly.

Mr. Fischer requested copies of Resolution 2004-094 be sent to Governor Murkowski; Senators Stevens and Wagoner; Representatives Chenault, Seaton and Wolf; Ed Dersham, Chairman of the Board of Fish; and Kevin Duffy, Alaska Fish and Game Commissioner.

MOTION TO AMEND PASSED: Without objection.

MOTION TO ADOPT AS AMENDED PASSED: Unanimous.

(9:07:55)

PUBLIC COMMENTS AND PUBLIC PRESENTATIONS

Jenny Espenshade, PO Box 1752, Homer, AK, Director of the Kenai Peninsula Youth Court, announced the Statewide Youth Court Conference would be held in Homer on November 11-13, 2004.

ASSEMBLY MEETING AND HEARING ANNOUNCEMENTS (9:10:10)

• Regular Borough Election October 5, 2004

• The next meeting of the Kenai Peninsula Borough Assembly was scheduled for October 12, 2004, at 7:00 p.m. in the Assembly Chambers, Borough Administration Building, Soldotna, Alaska.

Assembly Member Fischer requested a public hearing regarding the CES expansion (Proposition 6) be scheduled for September 30, 2004, at 7:00 p.m. at the Tustumena Elementary School.

ASSEMBLY COMMENTS (9:11:18)

Assembly Member Glick thanked the City of Homer for its hospitality.

Assembly Member Martin thanked the council and staff from the City of Homer for hosting the assembly today. Ms. Martin said the Arctic Winter Games was seeking a volunteer coordinator for the Homer area. Assembly Member Martin also encouraged the public to consider serving on the Kachemak Advisory Planning Commission, as there were several vacancies.

Assembly President Sprague expressed his appreciation to the City of Homer. President Sprague offered his best wishes to Mayor Jack Cushing and appreciated working with him during the past years.

ADJOURNMENT (9:15:46)

With no further business to come before the assembly, President Sprague adjourned the meeting at 9:15 p.m.

I certify the above represents accurate minutes of the Kenai Peninsula Borough Assembly meeting of September 21, 2004.