CALL TO ORDER

A Regular Meeting of the Kenai Peninsula Borough Assembly was held on October 26, 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 (7:01:55)

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

Assembly Member Long said the Policies and Procedures Committee discussed its agenda items and then conducted a work session regarding the Central Peninsula Landfill.

Assembly Member Martin said the Lands Committee met and discussed its brief agenda. The Committee also discussed the material site regulations in the Borough Code.

Assembly Member Long said the Legislative Committee reviewed the community process and scheduling for the 2005 Legislative Priorities. The Committee then discussed the Alaska Municipal League (AML) 2005 Draft Policy Statement, in preparation for the AML Annual Conference in Fairbanks next month. The Committee then discussed its agenda item.

(7:18:12)

MOTION: Long moved to endorse the Alaska Municipal League (AML) 2005 Draft Policy Statement, the AML 2005 State and Federal Priorities and a resolution requesting the support of Alaska's Congressional Delegation for the continuation of all existing fishery enhancement programs within the designated wilderness areas of Alaska.

MOTION TO AMEND: Fischer moved to amend the motion by deleting State Legislative Priority # 4, "Adopt a POMV Endowment Plan (Percent of Market Value)" and deleting Section 3, "Permanent Fund Earnings," from page 4 of the 2005 Draft Policy Statement.

MOTION TO TABLE: Glick moved to table the motion.

MOTION PASSED: Unanimous.

SEATING OF ASSEMBLY MEMBERS (7:33:22)

Borough Clerk Linda Murphy swore in Gary Superman as the newly re-elected assembly member for District 3.

APPROVAL OF AGENDA AND CONSENT AGENDA (7:34:43)

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 added to the consent agenda:

• A Resolution Commending the Kenai High School Football Team as the Alaska School Activities Association Small-Schools State Champions for the Year 2004 (Glick)

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.

• October 12, 2004 Regular Meeting Minutes

• A Commending Resolution Recognizing Christina Reasner as Miss Alaska 2004 (Merkes)
 
• A Resolution Commending the Kenai High School Football Team as the Alaska School Activities Association Small-Schools State Champions for the Year 2004 (Glick)

• Resolution 2004-107: Supporting Certain Kenai Peninsula Borough Road Service Area Roads Be Included in the State of Alaska Department of Transportation and Public Facilities 2006-2008 State Transportation Improvement Program and Providing for a Local Funding Match (Mayor) (Referred to Legislative Committee)

• Resolution 2004-108: Supporting the Application by the Borough to the Alaska Housing Finance Corporation and the Denali Commission for Additional Funding for the Tyonek Teacher Housing Project (Mayor) (Referred to Finance Committee) (8 Yes, 0 No, 1 Abstention)

Assembly Member Fischer said his son worked at the Tyonek School and declared he had a conflict of interest. President Sprague ruled a conflict did exist.

Borough Attorney Colette Thompson explained that a conflict of interest occurred if a person had an interest in the affairs of his or her spouse, spousal equivalency, minor children, or dependents. Ms. Thompson said Mr. Fischer's son would no longer be considered a dependent.

Mr. Fischer said he was still uncomfortable with voting on the Tyonek issue.

MOTION: Merkes moved to appeal the ruling of the chair.

VOTE ON MOTION TO UPHOLD

THE RULING OF THE CHAIR:

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

No: Merkes, Moss

Abstain: Fischer

Absent: None

RULING OF THE CHAIR WAS UPHELD: 6 Yes, 2 No, 1 Abstention, 0 Absent

Assembly Member Fischer abstained on Resolution 2004-108.

• Resolution 2004-109: Changing the Name of Homer Aquatic Center to the Kate Kuhns Aquatic Center (Mayor) (Referred to Policies and Procedures Committee)

[Clerk's Note: The following technical amendment was made to Resolution 2004-109: Final Whereas to read, "the Kenai Peninsula Borough Planning Commission recommended adoption by unanimous consent at its meeting held October 25, 2004;"]

• Ordinance 2004-19-22: Appropriating Supplemental Funding in the Amount of $80,000 to Cover Costs Associated with Appraisal, Appraisal Review, Audit, and Support for Certain Section 29.45 Property Owned by an Oil and Gas Company (Mayor) (Hearing on 12/07/04) (Referred to Finance Committee)
• Ordinance 2004-37 [2004-19-23]: Authorizing the Negotiated Lease at Fair Market Value of Government Lots 5 and 8, Section 34, T1N, R13W. S.M. Alaska, Containing Approximately 10 Acres to Marathon Oil Company for a Natural Gas Drilling/Production Pad (Mayor) (Hearing on 12/07/04) (Referred to Finance Committee

[Clerk's Note: Ordinance 2004-37 was incorrectly numbered as Ordinance 2004-19-23].

• Ordinance 2004-19-24: Accepting and Appropriating a Federal Grant in the Amount of $745,575 for Recreational Facilities to be Used During the 2006 Arctic Winter Games (Mayor) (Shortened Hearing on 11/16/04) (Referred to Finance Committee)
• Ordinance 2004-19-25: Appropriating $54,000 from the South Peninsula Hospital Service Area Fund Balance to Provide Supplemental Funding to Assist in the Procurement of Malpractice Insurance for Surgeons at the South Peninsula Hospital (Mayor at the request of the SPHSAB) (Hearing on 12/07/04) (Referred to Finance Committee)
• Petition to Vacate Bull Moose Lane and Portion of High Bush Court within Tract A, Dedicated by Birch Hollow Subdivision No 12 (Plat KN 96-93); within Sections 30, Township 5 North Range 9 West, Seward Meridian, Alaska; and the Kenai Peninsula Borough; Petitioners: Nick John and Georgia L Poppin of Soldotna, Alaska; Location: West of Longmere Lake (Referred to Lands Committee)

[Clerk's Note: The Planning Commission approved the referenced vacation subject to staff's recommendations during its regularly scheduled October 11, 2004 meeting. Staff's recommendations are included in the Planning Commission minutes.]

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

AGENDAS APPROVED AS AMENDED: Unanimous.

ASSEMBLY REORGANIZATION (7:47:20)

President Sprague called for nominations for the office of Assembly President.

NOMINATIONS: Glick nominated Pete Sprague.

Merkes nominated Gary Superman.

Seeing no further nominations, President Sprague closed the nomination period.

Borough Clerk Linda Murphy counted the secret ballots and read the results of the vote for Assembly President.

VOTE ON ELECTION OF ASSEMBLY PRESIDENT:

Superman: 7

Sprague: 2

Mr. Superman was elected to the office of Assembly President.

President Superman called for nominations for the office of Assembly Vice President.

(7:50:09)

NOMINATIONS: Fischer nominated Ron Long.

Martin nominated Pete Sprague.

VOTE ON ELECTION OF ASSEMBLY VICE PRESIDENT:

Long: 6

Sprague: 3

Mr. Long was elected to the office of Assembly Vice President.

COMMENDING RESOLUTIONS AND PROCLAMATIONS (7:52:17)

Assembly Member Merkes presented a commending resolution to Christina Reasner recognizing her as Miss Alaska 2004.

Assembly Member Glick recognized the Kenai Central High School Football team as the 2004 Small-Schools State Champions and presented certificates of achievements to the players.

Mayor Bagley proclaimed November 2004 as Family Caregivers Month.

PRESENTATIONS WITH PRIOR NOTICE - None.

PUBLIC COMMENTS ON ITEMS NOT APPEARING ON THE AGENDA (8:04:40)

Steve Vanek, PO Box 103, Ninilchik, AK, spoke about the Tustumena Lake Sockeye stocking program.

John McCombs, PO Box 87, Ninilchik, AK, spoke about the loss of revenue due to fishery escapement goals. Mr. McCombs suggested the assembly form a Fisheries Committee.

REPORTS OF COMMISSIONS AND COUNCILS - None.

MAYOR'S REPORT (8:12:16)

• Approval of contract with Russ' Construction for Sanding and Refinishing Gym Floor at North Peninsula Recreation Center
• Approval of contract with J&R Services for Ice Hockey Rink Maintenance at Soldotna Elementary and Soldotna, Kenai Central and Skyview High Schools
• Approval of Professional Services Agreement between KPB, on behalf of Central Kenai Peninsula Hospital Service Area, and Jackie F. Hewett for Secretarial Services
• Other
• Budget Revisions and Revenue-Expenditure Reports - September 2004
• Investment Portfolio Report as of September 30, 2004
• Project Reports - September 30, 2004

(8:13:18)

Assembly Member Fischer asked about the investment portfolio and its current performance record.

Mayor Bagley said information would be supplied at the next assembly meeting.

PUBLIC HEARINGS ON ORDINANCES

(8:14:07)

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) (Referred to Finance Committee)

MOTION: Moss moved to enact Ordinance 2004-19-12.

Assembly Member Moss said the additional cost was due to increased steel prices.

President Superman called for public comment with none being offered.

MOTION TO ENACT PASSED: Unanimous.

(8:15:58)

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) (Referred to Lands Committee)

MOTION: Martin moved to enact Ordinance 2004-19-13.

Assembly Member Martin said during the Lands Committee meeting, CES Fire Chief Tucker explained the additional lots would provide space for parking and storage.

President Superman called for public comment with none being offered.

MOTION TO AMEND: Martin moved to amend Ordinance 2004-19-13 as follows:

Final Whereas to read, "the KPB Planning Commission at its regularly scheduled meeting of September 27, 2004 recommended enactment by majority vote;"

Section 3 to read, "...for the acquisition, closing costs and 2004 [2003] taxes."

MOTION TO AMEND PASSED: Without objection.

MOTION TO ENACT AS AMENDED PASSED: Unanimous.

(8:22:00)

Ordinance 2004-19-20: Accepting and Appropriating a State Grant in the Amount of $100,000 for the 2006 Arctic Winter Games (Mayor) (Referred to Finance Committee)

MOTION: Moss moved to enact Ordinance 2004-19-20.

Assembly Member Moss said the grant would be used as operating funds for the Arctic Winter Games.

President Superman called for public comment with none being offered.

MOTION TO ENACT PASSED: Unanimous.

(8:23:22)

Ordinance 2004-33: Adopting the 2004 Kenai Peninsula Borough All Hazard Mitigation Plan (Mayor) (Final Hearing) (Referred to Policies and Procedures Committee)

[Clerk's Note: There was a motion to enact on the floor from the October 12, 2004 meeting.]

President Superman called for public comment with none being offered.

MOTION TO AMEND: Martin moved to amend Ordinance 2004-33 as follows:

All-Hazard Mitigation Plan, Flood Section 2.12, Page 2-62, Implementation Ideas/Action Items to read,

"Seek grants and technical partnerships to complete comprehensive studies of the Homer bench to identify areas of slope instability. Studies would incorporate soil surveys, slope and drainage assessments and an evaluation of the effect of existing and proposed new development on slope stability.

Use information gathered in the comprehensive studies to formulate mitigation strategies to minimize the risk of catastrophic slope failures in developing areas on the Homer bench.

Seek grants and technical partnerships to complete comprehensive coastal erosion studies. Studies would include identifying existing storm wave protection structures, establishing erosion rates, completing a comprehensive digital elevation model and researching the oceanographic and coastal processes that affect the Kenai Peninsula coastlines.

Develop a modeling tool to help predict bluff and coastal erosion

Use information gathered in the comprehensive studies to formulate mitigation strategies to develop cost-effective solutions to protect life, property and coastal resources."

MOTION TO AMEND PASSED: Without objection.

MOTION TO AMEND: Long moved to amend Ordinance 2004-33 as follows:

10th Whereas to read, "the Planning Commission at its October 11, 2004 meeting recommended enactment by unanimous consent; and"

MOTION TO AMEND PASSED: Without objection.

MOTION TO ENACT AS AMENDED PASSED: Unanimous.

(8:32:55)

Ordinance 2004-34: Amending KPB 16.04.080 to Clarify Procedures Regarding Service Area Directors' Employment (Superman) (Referred to Policies and Procedures Committee)

MOTION: Long moved to enact Ordinance 2004-34.

President Superman called for public comment with none being offered.

Assembly Member Glick spoke in opposition to Ordinance 2004-34.

(8:36:49)

The gavel was passed to Vice President Long. Assembly President Superman, as sponsor of the ordinance, explained the ordinance would grant final authority to the mayor if there was an impasse with the service area board. The gavel was returned to President Superman.

Assembly Members Martin, Sprague and Long spoke in favor of the ordinance.

MOTION TO ENACT PASSED: Unanimous.

(8:56:46)

Ordinance 2004-36: Amending KPB 5.18.430, Sales Tax Computation - Maximum Tax, By Increasing It From $500 to $1000 (Mayor) (First of Two Hearings) (Referred to Finance Committee)

MOTION: Moss moved to enact Ordinance 2004-36.

Assembly Member Moss stated an earlier attempt to raise the maximum tax computation failed. The increase could generate approximately $1.9 Million and would be dedicated to funding the school district.

President Superman called for public comment.

The following people spoke in opposition to Ordinance 2004-36:

Fred Sturman, PO Box 513, Soldotna, AK

Robert Molloy, 513 Ash Avenue, Kenai, AK

Kristine Schmidt, 513 Ash Avenue, Kenai, AK

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

Assembly Member Chay spoke in favor of Ordinance 2004-36.

MOTION TO POSTPONE: Moss moved to postpone Ordinance 2004-36 until the next scheduled public hearing date of November 16, 2004.

MOTION TO POSTPONE PASSED: Unanimous.

UNFINISHED BUSINESS (Postponed Items)

(9:13:48)

Ordinance 2004-31: Confirming the Assessment Roll for the Char Subdivision Utility Special Assessment District and Establishing the Method for Terminating Assessments and Making Refunds to Property Owners (Mayor) (Referred to Finance Committee)

[Clerk's Note: There was a motion to enact on the floor from the October 12, 2004 meeting.]

Assembly Member Moss said a property owner, who addressed the assembly at the last meeting, was mistaken about the cost to connect to the natural gas line. Mr. Moss said connection fees were considerably lower than she had indicated.

President Superman called for public comment with none being offered.

MOTION TO ENACT PASSED: Unanimous.

(9:16:17)

Resolution 2004-106: Establishing Positions in the Solid Waste Department for the Central Peninsula Landfill (Mayor) (Referred to Policies and Procedures Committee)

[Clerk's Note: There was a motion to adopt on the floor from the October 12, 2004 meeting.]

Assembly Member Long said a work session was held earlier in the day with KPB Solid Waste Director Cathy Mayer.

President Superman called for public comment.

The following person spoke in opposition to Resolution 2004-106:

Fred Sturman, PO Box 513, Soldotna, AK

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

Assembly Member Glick said several local contractors were in favor of the borough taking over operations at the Central Peninsula Landfill.

Assembly Member Martin noted the Alaska Department of Environmental Conservation also expressed support for the borough to assume operations at the landfill.

Assembly Member Moss said this landfill was a state-of-the-art project and needed to be operated as such.

Assembly Member Sprague thanked Cathy Mayer for the information supplied to the assembly.

MOTION TO POSTPONE: Chay moved to postpone Resolution 2004-106 until November 16, 2004.

VOTE ON MOTION TO POSTPONE:

Yes: Chay, Fischer, Glick, Merkes

No: Long, Martin, Moss, Sprague, Superman

Absent: None

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

VOTE ON MOTION TO ADOPT:

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

No: Fischer

Absent: None

MOTION TO ADOPT PASSED: 8 Yes, 1 No, 0 Absent

NEW BUSINESS (10:01:53)

MOTION: Long moved to take from the table the motion to endorse the AML Policy Statement.

President Superman called for public comment.

The following person spoke against changing the Permanent Fund:

Fred Sturman, PO Box 513, Soldotna, AK

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

Borough Clerk Murphy restated the Fischer amendment to delete Item 4, "Adopt a POMV Endowment Plan (Percent of Market Value)," from the AML State Legislative Priorities list and Section 3, "Permanent Fund Earnings," on page 4 of the 2005 Draft Policy Statement.

VOTE ON MOTION TO AMEND:

Yes: Chay, Fischer, Glick

No: Long, Martin, Merkes, Moss, Sprague, Superman

Absent: None

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

[Clerk's Note: Previously, the main motion before the assembly was made by Mr. Long to endorse the AML 2005 Policy Statement, the 2005 AML State and Federal Legislative Priorities, and a resolution requesting the support of Alaska's Congressional Delegation for the continuation of all existing fishery enhancement programs within designated wilderness areas of Alaska.]

VOTE ON MOTION TO ENDORSE AML ITEMS:

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

No: Fischer, Glick

Absent: None

MOTION TO ENDORSE ITEMS PASSED: 7 Yes, 2 No, 0 Absent

PUBLIC COMMENTS AND PUBLIC PRESENTATIONS - None.

ASSEMBLY MEETING AND HEARING ANNOUNCEMENTS (10:11:50)

• General Election November 2, 2004
• AML Annual Conference November 10-12, 2004 Fairbanks, AK

• The next meeting of the Kenai Peninsula Borough Assembly was scheduled for November 16, 2004, at 7:00 p.m. in the Assembly Chambers, Borough Administration Building, Soldotna, Alaska.

ASSEMBLY COMMENTS (10:13:11)

Assembly Member Chay attended a school district budget review session and learned of anticipated shortfalls for the coming fiscal year.

Assembly Member Fischer congratulated Mr. Superman and Mr. Long on their election to office. Mr. Fischer thanked Mr. Sprague for his leadership as president.

Assembly Member Long thanked his fellow assembly members for their support.

Assembly Member Martin echoed the comments toward Mr. Sprague. Ms. Martin said the Homer Boys and Girls Swim Team took regionals and were headed to the state competition. The Kachemak Emergency Service Area announced its new building was scheduled for completion on November 15, 2004. Ms. Martin thanked Mayor Bagley for the proclamation to family caregivers.

Assembly Member Sprague said he was honored and privileged to serve as assembly president for the last two years. Mr. Sprague announced he would assume the office of president of the Alaska Municipal League in November 2004. Mr. Sprague thanked the clerk and her staff for their valuable assistance and encouraged President Superman to utilize their expertise.

Assembly Member Moss offered his congratulations to the new officers.

Assembly Member Merkes thanked Mr. Sprague for his service as president. Ms. Merkes reported on a recent meeting with the Alaska Department of Conservation (DEC) in Sterling regarding the ZipMart spill. DEC estimated the contamination to be at 100,000 gallons of fuel with only 12,000 gallons of free product recovered to date.

Assembly Member Glick thought Mr. Superman would be a fine president as would Mr. Long in his new position as vice president. Ms. Glick said the loss of the municipal revenue sharing program was critical and felt the community dividend program should be initiated.

Assembly President Superman thanked his fellow assembly members for the honor to serve as president. Mr. Superman appreciated the past work of Mr. Sprague.

ADJOURNMENT (10:31:55)

With no further business to come before the assembly, President Superman adjourned the meeting at 10:32 p.m.

I certify the above represents accurate minutes of the Kenai Peninsula Borough Assembly meeting of October 26, 2004.

Approved by Assembly: