Kenai Peninsula Borough

Assembly Meeting Minutes

November 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 November 16, 2004, in the Assembly Chambers, Borough Administration Building, Soldotna, Alaska. President Superman 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 John Rysdyk, Soldotna Bible Chapel.

There were present:

Gary Superman, Presiding

Dan Chay

Paul Fischer

Betty Glick

Ron Long

Milli Martin

Grace Merkes

Chris Moss

Pete Sprague

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 (7:04:21)

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

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

Assembly Member Long said the Legislative Committee discussed the recent Alaska Municipal League Annual Conference. The Committee then addressed its agenda item.

APPROVAL OF AGENDA AND CONSENT AGENDA (7:12:52)

MOTION TO APPROVE AGENDAS: Glick moved for the approval of the agenda and consent agenda.

President Superman called for additions, corrections or deletions to the agenda or consent agenda.

MOTION: Fischer moved to suspend the rules and address Ordinance 2004-36 as the first item of business under "Public Hearings on Ordinances."

MOTION PASSED: Without objection.

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.

[Clerk's Note: The following technical amendment was made to Resolution 2004-112, Section 3 to read, "That copies of this resolution be delivered to the Honorable Governor Frank Murkowski, Revenue Commissioner William Corbus, Department of Natural Resources Commissioner Tom Irwin, Senator Tom Wagoner, Senator Gary Stevens, Senator Con Bunde, Senator-Elect Albert Kookesh, Senator Georgianna Lincoln, Representative Mike Hawker, Representative-Elect Woodie Salmon,..."

AGENDAS APPROVED AS AMENDED: Unanimous.

COMMENDING RESOLUTIONS AND PROCLAMATIONS - None.

PRESENTATIONS WITH PRIOR NOTICE (7:18:12

Tom Boedeker, Central Peninsula General Hospital, Inc. board member, provided an update of CPGH activities for the reporting period ending September 30, 2004.

Loren Smith, General Manager of the 2006 Arctic Winter Games, reported on recent activities and organizational methods in preparation for the games.

PUBLIC COMMENTS ON ITEMS NOT APPEARING ON THE AGENDA (7:43:09)

John McCombs, PO Box 87, Ninilchik, AK, discussed the below-average salmon fry in Skilak Lake and suggested the borough participate in the Alaska Board of Fisheries meeting in January 2005.

Steve Vanek, PO Box 103, Ninilchik, AK, said the borough needed a fisheries liaison position, similar to the borough's oil & gas liaison.

Lloyd Schade, 35250 Schade Drive, Homer, AK, attended a recent Alaska Board of Forestry meeting. Mr. Schade also met with representatives of the Army Corp of Engineers, Homeland Security and the Federal Aviation Administration.

Ruby Kime, Alice Avenue, Ninilchik, AK, requested the borough become an active participant with the Board of Fisheries.

David Martin, 71605 Sterling Highway, Clam Gulch, AK, said the current fisheries problems were not due to allocation issues, but to over-escapement and lack of biological management of the resource.

Merlin Cordes, 146 E. Fairview Avenue, Homer, AK, said the biological management was out of control and state fisheries biologists should be allowed to regulate the program, not the governor or other political groups.

REPORTS OF COMMISSIONS AND COUNCILS - None.

MAYOR'S REPORT (8:08:30)

Agreements and Contracts

Spruce Bark Beetle Mitigation Program:

Other

Budget Revisions and Revenue-Expenditure Reports - October 2004

Capital Projects Progress Report - November 2004

(8:08:30)

Mayor Bagley said Central Emergency Services Chief Jeff Tucker had recently resigned. Mayor Bagley said the recent land sale in Cooper Landing was not yet finalized, but bids were received on all parcels.

Assembly Member Long had questions regarding the revenue report and associated fees. Mayor Bagley said information would be provided at a later date.

Assembly Member Sprague asked about the procedures to hire a new fire chief. Mayor Bagley explained the process and anticipated it would take at least two months.

Assembly Member Sprague also asked about the North Road extension project. Mayor Bagley said the borough was "being held hostage" by several agencies that wanted the borough to fund $2 Million in environmental studies before proceeding with the project.

PUBLIC HEARINGS ON ORDINANCES

(8:15:18)

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

[Clerk's Note: There was a motion to enact on the floor from the October 26, 2004 meeting.]

Assembly Member Moss said this ordinance was introduced by the Mayor in anticipation of declining revenues for FY2006.

President Superman called for public comment.

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

Petria Falkenberg, 399 McCollum Drive, Kenai, AK

Dave Phegley, 47716 Interlake Drive, Nikiski, AK

Robert Molloy, 513 Ash Avenue, Kenai, AK, on behalf of the Kenai Peninsula Bar Association

Merlin Cordes, 146 E. Fairview Avenue, Homer, AK

Steve Vanek, PO Box 103, Ninilchik, AK

David Martin, 71605 Sterling Highway, Clam Gulch, AK

Fred Sturman, PO Box 513, Soldotna, AK

Marc Crouse, 36314 Kenai Spur Highway, Soldotna, AK

James Price, 49185 Island Lake Road, Nikiski, AK

Ruby Kime, Alice Avenue, Ninilchik, AK

Kristine Schmidt, 513 Ash Avenue, Kenai, AK

Jeff Jones, 50565 Ruby's Way, Nikiski, AK

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

Assembly Member Moss noted that the borough had taken $5.3 Million from its reserve account. If the Governor increased education funding in FY2006, the borough would likely supply an additional $1 Million in matching funds. The recent increase in the property tax exemption would result in a loss of approximately $670,000. The Borough's PERS obligation this year totaled $625,000. Mr. Moss said the estimated total needed from the reserve account for FY2006 was $7.3 Million.

MOTION: Fischer moved to table Ordinance 2004-36.

VOTE ON MOTION TO TABLE:

Yes: Fischer, Glick, Merkes, Sprague

No: Chay, Long, Martin, Moss, Superman

Absent: None

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

Assembly Member Sprague suggested a seasonal sales tax. Mr. Sprague also talked about the possibility of a bed tax and a review of the current sales tax exemptions.

Assembly Member Long reminded his fellow assembly members that they chose not to address the sales tax issue during the last budget cycle. It did not make sense to postpone it again until the next budget process. Mr. Long also noted the borough did not have a fiscal plan. Assembly Member Long said sales tax exemptions were a problem.

Assembly Member Glick said that, several past sales tax committees had investigated raising the tax cap from $500 to $1,000. In the last review of the sales tax code, changes to charter operations were suggested but the assembly did not act on that recommendation. Assembly Member Glick suggested investigating various scenarios in relationship to the total financial picture of the borough.

Assembly Member Chay was concerned with the large anticipated budget shortfalls for both the borough and the school district.

MOTION TO AMEND: Moss moved to amend Ordinance 2004-36 as follows:

Add a new Section 2 to read, "This ordinance will remain in effect until December 31, 2006."

And to renumber the remaining section accordingly.

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

Assembly Member Fischer spoke in opposition to the amendment.

(9:54:37)

The gavel was passed to Vice President Long. Assembly President Superman said the assembly needed to take fiduciary responsibility and examine the borough's financial picture. President Superman spoke in favor of the amendment and said the two year provision gave the borough time to consider all options. The gavel was returned to Assembly President Superman.

VOTE ON MOTION TO AMEND:

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

No: Fischer

Absent: None

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

Assembly Member Martin encouraged another look at the charter and tourism industry tax exemptions.

Assembly Member Fischer asked why sales tax changes could not be made mid-year.

KPB Sales Tax Accounting Supervisor Troy Tankersley said there were 750 annual filers who reported their sales on a yearly basis. In addition, many charter operations pre-sold summer tours and fishing trips prior to the summer tourist season.

Assembly Member Merkes spoke in opposition to Ordinance 2004-36.

MOTION TO POSTPONE: Chay moved to postpone Ordinance 2004-36 until March 1, 2005, and in the interim to engage the public in a problem solving process.

VOTE ON MOTION TO POSTPONE:

Yes: Chay, Fischer, Glick, Merkes, Sprague

No: Long, Martin, Moss, Superman

Absent: None

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

(10:32:19)

Ordinance 2004-19-14: Appropriating Supplemental Funding of $17,824 From the Nikiski Senior Service Area Fund Balance to Cover Septic System Repairs and Workers Compensation Insurance Costs in Excess of the Budgeted Amount (Mayor) (Referred to Finance Committee)

MOTION: Moss moved to enact Ordinance 2004-19-14.

Assembly Member Moss said there were several amendments forthcoming.

President Superman called for public comment with none being offered.

MOTION TO AMEND: Moss moved to amend Ordinance 2004-19-14 as follows:

Title to read, "An Ordinance Appropriating Supplemental Funding of $13,618 [$17,824] from the Nikiski Senior Service Are Fund Balance..."

Second Whereas to read, "NSC has incurred unexpected expenses of $5,500 related to the repair of the septic system located at the Nikiski Senior Center; and"

Third Whereas to read, "NSC's workers' compensation insurance premium recently increased from $5,906 to $14,024, a 137% [263%] increase; and"

Section 1 to read, "That the sum of $13,618 [$17,824] be appropriated from the Nikiski Senior Service Area fund balance..."

MOTION TO AMEND PASSED: Without objection.

MOTION TO ENACT AS AMENDED PASSED: Unanimous.

(10:36:18)

Ordinance 2004-19-15: Appropriating Funds for a 3/4-Time Senior Clerk Typist Position for the Coastal Management Program (Martin) (Referred to Finance Committee)

MOTION: Moss moved to enact Ordinance 2004-19-15.

Assembly Member Moss said a support position would allow for faster review of permits and provide assistance to the program coordinator.

President Superman called for public comment with none being offered.

Assembly Member Martin said the position was eliminated during the FY2005 budget process.

MOTION TO AMEND: Moss moved to amend Ordinance 2004-19-15 as follows:

Section 2 to read, "...$20,000 [$24,115.54] (Personal Services) Account No. 100.22140.00000.40110."

MOTION TO AMEND PASSED: Without objection.

Mayor Bagley said in the past, the state had funded 90 percent of the coordinator's position and a grant funded the 3/4 part-time position in its entirety.

Assembly Members Sprague, Moss and Long spoke in opposition to the ordinance and encouraged the borough's financial picture to first be defined.

VOTE ON MOTION TO ENACT AS AMENDED:

Yes: Martin

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

Absent: None

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

(10:52:04)

Ordinance 2004-19-16: Accepting and Appropriating a State Grant in the Amount of $10,000 for a Flashing Warning Light for the Central Peninsula Emergency Medical Service Area (Mayor) (Referred to Finance Committee)

MOTION: Moss moved to enact Ordinance 2004-19-16.

Assembly Member Moss said there was an amendment forthcoming.

President Superman called for public comment with none being offered.

MOTION TO AMEND: Moss moved to amend Ordinance 2004-19-16 as follows:

Final Whereas to read, "at its regular meeting of October 21, 2004, the Central Emergency Service Area Board of Directors recommended enactment;"

MOTION TO AMEND PASSED: Without objection.

MOTION TO ENACT AS AMENDED PASSED: Unanimous.

(10:53:50)

Ordinance 2004-19-17: Accepting and Appropriating a State Grant in the Amount of $7,000 for a Sign at Nikiski North Star Elementary School (Mayor) (Referred to Finance Committee)

MOTION: Moss moved to enact Ordinance 2004-19-17.

President Superman called for public comment with none being offered.

MOTION TO ENACT PASSED: Unanimous.

(10:55:06)

Ordinance 2004-19-18: Accepting and Appropriating a State Grant in the Amount of $10,000 for Distance Learning Equipment for the South Kenai Peninsula Hospital Service Area (Mayor) (Referred to Finance Committee)

MOTION: Moss moved to enact Ordinance 2004-19-18.

President Superman called for public comment with none being offered.

MOTION TO AMEND: Moss moved to amend Ordinance 2004-19-18 as follows:

Final Whereas to read, "at its regular meeting of October 7, 2004, the Service Area Board of Directors recommended enactment;"

MOTION TO AMEND PASSED: Without objection.

MOTION TO ENACT AS AMENDED PASSED: Unanimous.

(10:57:01)

Ordinance 2004-19-19: Accepting and Appropriating a State Grant in the Amount of $70,000 for Purchase of a Tanker Truck for the Anchor Point Fire and Emergency Medical Service Area (Mayor) (Referred to Finance Committee)

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

Assembly Member Moss stated the grant would provide full funding for the tanker truck.

President Superman called for public comment with none being offered.

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

Final Whereas to read, "at its regular meeting on October 18, 2004, the Service Area Board of Directors recommended enactment;"

MOTION TO AMEND PASSED: Without objection.

MOTION TO ENACT AS AMENDED PASSED: Unanimous.

(10:58:48)

Ordinance 2004-19-21: Appropriating $275,000 from the Equipment Replacement Fund to Purchase Heavy Equipment for the Central Peninsula Landfill (Mayor) (Referred to Finance Committee)

MOTION: Moss moved to enact Ordinance 2004-19-21.

Assembly Member Moss stated the equipment was needed for the borough to operate the Central Peninsula Landfill.

President Superman called for public comment with none being offered.

MOTION TO ENACT PASSED: Unanimous.

(11:00:28)

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) (Referred to Finance Committee)

MOTION: Moss moved to enact Ordinance 2004-19-24.

Assembly Member Moss stated this federal grant was to be used for the following capital projects:

Icing System / Dasher Boards - Homer $397,640

Trail System Improvements - Soldotna $149,115

Scoreboards & Marquee - Soldotna Sports Center $ 99,410

Sporting Gear & Equipment - Boroughwide $ 99,410

President Superman called for public comment with none being offered.

MOTION TO AMEND: Moss moved to amend Ordinance 2004-19-24 as follows:

Section 3 to read, "That funds in the amount of $745,575 are appropriated to account 271.11225.04041.43011."

MOTION TO AMEND PASSED: Without objection.

MOTION TO ENACT AS AMENDED PASSED: Unanimous.

(11:06:12)

Ordinance 2004-35: Amending KPB Chapter 1.12 to Provide For Economic Summaries to be Attached to Proposed Ordinances (Glick) (Referred to Policies and Procedures Committee)

MOTION: Chay moved to enact Ordinance 2004-35.

President Superman called for public comment with none being offered.

Assembly Member Glick stated a number of assembly members had discussed the need for fiscal notes with ordinances but nothing had materialized. Ms. Glick noted there was not a dedicated staff person available to complete such economic summaries.

MOTION: Glick moved to postpone Ordinance 2004-35 until March 1, 2005.

MOTION TO POSTPONE PASSED: Unanimous.

PUBLIC COMMENTS AND PUBLIC PRESENTATIONS - None.

ASSEMBLY MEETING AND HEARING ANNOUNCEMENTS (11:11:46)

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

ASSEMBLY COMMENTS (11:12:05)

Assembly Member Fischer said community priority meetings were scheduled for December 2nd at the Tustumena Elementary School and December 9th at the Ninilchik Senior Center.

Assembly Member Martin wished everyone a Happy Thanksgiving.

Assembly Member Long thanked the borough for the opportunity to attend the Alaska Municipal League Annual Conference. Mr. Long reminded everyone of the legislative priorities and to schedule meetings in their respective communities.

Assembly Member Glick wished a Happy Birthday to Sue Ellen Essert of the Borough Clerk's Office.

Assembly President Superman stated he would be attending a Resource Development Council meeting in Anchorage, November 18-19, 2004. President Superman delivered a participation plaque to the borough from the Alaska Municipal League/Joint Insurance Association.

ADJOURNMENT (11:16:06)

With no further business to come before the assembly, President Superman adjourned the meeting at 11:16 p.m.

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


Linda S. Murphy, Borough Clerk

Approved by Assembly: