Kenai Peninsula Borough

Assembly Meeting Minutes

January 18, 2005 - 7:00 p.m. Regular Meeting - Soldotna, Alaska

CALL TO ORDER

A Regular Meeting of the Kenai Peninsula Borough Assembly was held on January 18, 2005, 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 Alan Humphries, Soldotna Church of God.

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 (7:03:11)

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

The Committee received updates on the annual audit and the status of the Central Peninsula Landfill operations.

Assembly Member Merkes stated the Lands Committee met and addressed its agenda items.

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

Assembly Member Long said the Legislative Committee met and finalized the 2005 State Capital Project Priorities. Mr. Long said the Committee discussed a proposal from Joe Childers to analyze the regional groundfish issues facing the borough.

(7:12:43)

MOTION: Moss moved to transfer the sum of $2,000 from Assembly Administration Contingency Account 100.11110.49999 to Assembly Contract Services Account 100. 11110.43011 and authorize a sole source contract between the borough and Joe Childers for an amount not to exceed $2,000 to undertake an analysis of the current proposed regionalization measures under consideration at the North Pacific Fisheries Management Council to identify and quantify how these proposed measures could affect groundfish landings in the Kenai Peninsula Borough.

MOTION PASSED: Unanimous.

APPROVAL OF AGENDA AND CONSENT AGENDA (7:19:00)

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

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

The following item was added to the consent agenda:

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

[Clerk's Note: Technical amendments were made to Resolution 2005-009 changing the debt obligation amount from $273,900 to $188,340 in the title and in Section 1.]

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.

President Superman 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 (7:23:46)

Loretta Flanders, Central Peninsula General Hospital, Inc. Board President, provided a quarterly report of hospital activities for the period ending December 31, 2004.

Bill Coghill of Mikunda Cottrell & Co; presented the results of the borough's annual audit for the period ending June 30, 2004. Mr. Coghill said the financial statements fairly represented the activities of the borough and there were no findings or material items to report.

PUBLIC COMMENTS ON ITEMS NOT APPEARING ON THE AGENDA (7:52:03)

Lloyd Schade, 35250 Schade Drive, Homer, AK, said the Fire Marshal would not recognize the Eastland Volunteer Fire Department without borough approval.

REPORTS OF COMMISSIONS AND COUNCILS - None.

MAYOR'S REPORT (7:56:23)

Agreements and Contracts

Spruce Bark Beetle Mitigation Program:

Other

Activities Report authorizing expedited removal of beetle-killed spruce from the KPB land. October 1, 2003 - December 31,2004

Litigation Status Report - January 6, 2005

Budget Revisions - December 2004

Revenue-Expenditure Report - December 2004

PUBLIC HEARINGS ON ORDINANCES - None.

UNFINISHED BUSINESS (7:57:18)

Ordinance 2004-19-29: Accepting and Appropriating a Grant from the U. S. Department of Justice in the Amount of $2,473,693; Appropriating $1,000,000 from Central Emergency Services; and Appropriating $239,835 from the General fund for Construction of an Emergency Response Center (Mayor) (Referred to Finance Committee)

[Clerk's Note: There was a motion to enact on the floor from the January 4, 2005 meeting.]

Assembly Member Moss said the multi-use facility would house the E-911 Dispatch Center, CES administration and a borough emergency operations center. Annual operating costs of approximately $77,000 would be shared by the occupants.

Assembly President Superman stated the City of Kenai Administration had been allotted 15 minutes to make a presentation to the assembly.

Scott Walden, Kenai Fire Chief, presented a video on the PRISM facility and its features. The building's intended use was to serve as a long term emergency operations center. Chief Walden provided information on earlier federal funding requests by the City of Kenai and the borough on their respective emergency programs.

Assembly Members Fischer and Chay asked about leasing rates and space usage. Chief Walden said the City of Kenai could offer leasing arrangements at six percent of fair market rates.

Assembly Member Merkes asked about the communications layout within the PRISM facility. Chief Walden said the facility was designed to house a dispatch unit.

Assembly Member Glick asked if the building had "problems." Chief Walden said the facility was wired to CAT5, contained fiber optics throughout and had state of the art equipment.

Pat Porter, Mayor of Kenai, said the city requested support from the borough while the city continued its efforts to complete the emergency command center.

(8:45:59)

President Superman then called for public comment.

The following people spoke in opposition to Ordinance 2004-19-29:

Mark Osterman, PO Box 1027, Kasilof, AK

Vicki Pate, PO Box 7447, Nikiski, AK

Fred Sturman, PO Box 513, Soldotna, AK

The following person spoke in favor of Ordinance 2004-19-29:

John Lucking, Soldotna Police Chief

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

MOTION TO AMEND: Moss moved to amend Ordinance 2004-19-29 as follows:

Add a new Section 7 to read, "Section 6 of both Ordinance 2004-19-13 and Ordinance 2002-19-35 shall be repealed and reenacted to read as follows:

The project will refund the land trust fund the amount of $138,000 based upon total land cost of $198,000 less $60,000, which represents the approximate value of the portion to be occupied by the Office of Emergency Management."

And to renumber the remaining section accordingly.

MOTION TO AMEND PASSED: Without objection.

Assembly Member Chay appreciated learning the history of the Kenai facility and better understood its intended use as a large emergency command center. Mr. Chay supported the new multi-use center in Soldotna.

Assembly Member Long appreciated the presentation and information provided by the City of Kenai.

Assembly Member Glick was aware of the need for an emergency command center. Ms. Glick understood the need for the proposed multi-use facility but expressed her concern with using monies from the General Fund, in light of overall budget constraints.

Rob Robson, KPB Public Works Director, said two more months were required for full design work, construction documents and final cost estimates.

Assembly Member Fischer requested a ruling from the U.S. Department of Justice on whether the mayor could serve as the law enforcement officer for the borough.

Assembly Member Martin asked about the preliminary construction budget. Mr. Robson said the figures shown were developed using schematic phase costs. The final cost would be determined during the design development phase.

Assembly Member Sprague thanked the various agencies and jurisdictions that had worked on the proposed multi-use facility.

Assembly Member Moss spoke in favor of the project based on the fact that future construction costs would exceed the current cost of construction.

VOTE ON MOTION TO ENACT AS AMENDED:

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

No: Glick

Absent: None

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

(9:40:04)

NEW BUSINESS

Resolution 2005-009: Authorizing Central Peninsula General Hospital, Inc. to Enter into a Three-Year Lease of Space with G&G Development Company Creating a Debt Obligation Not to Exceed $188,340 (Mayor) (Referred to Lands Committee)

[Clerk's Note: The following technical amendments were made to Resolution 2005-009: Title to read, "Authorizing Central Peninsula General Hospital, Inc. to Enter into a Three-Year Lease of Space with G&G Development Company Creating a Debt Obligation Not to Exceed $188,340 [$273,900]" and Section 1 to read, "CPGH, Inc. is authorized to enter into a three-year lease, creating a debt obligation in an amount not to exceed $188,340 [$273,900], of the real property..."]

MOTION: Merkes moved to adopt Resolution 2005-009.

President Superman called for public comment with none being offered.

Assembly Member Sprague had attended the last CPGH Service Area board meeting and said the resolution adopted by the board was different from Resolution 2005-009.

David Gilbreath and Aaron Kotzin from CPGH noted changes to the term of the lease from five years to three years with additional costs for renovation included in Resolution 2005-009.

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

(10:03:44)

Resolution 2005-010: Authorizing Central Peninsula General Hospital, Inc. to Enter into a Three-Year Lease of Space with Sol-Ken Enterprises Creating a Debt Obligation Not to Exceed $108,648 (Mayor) (Referred to Lands Committee)

MOTION: Merkes moved to adopt Resolution 2005-010.

President Superman called for public comment with none being offered.

MOTION TO AMEND: Merkes moved to amend Resolution 2005-010 as follows:

Section 2 to read, "The term of the lease shall be for three years, commencing on January 19, 2005 [DECEMBER 1, 2004]. Lease payments shall be $3,018 per month, not including heat, electricity, and utilities. The terms and conditions of the lease shall be substantially in accordance with those of the accompanying lease agreement and shall authorize an assignment to the successor to CPGH, Inc. if its contract with the borough is terminated before the lease expires."

MOTION TO AMEND PASSED: Without objection.

VOTE ON MOTION TO ADOPT AS AMENDED:

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

No: Fischer

Absent: None

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

(10:12:35)

Approving the Application for Transfer Relocation of Liquor License filed by The Tebughna Sunset Liquor Store and Tebughna Sunset Café in Tyonek Alaska (Referred to Finance Committee)

Approving the Application for Restaurant Designation filed by The Tebughna Sunset Café in Tyonek Alaska

Assembly Member Moss said, according to borough records, a church was located within the 500 foot radius of the new establishment. KPB 7.10.020 mandated that the borough protest the issuance of the license unless the church consented to the location. An affidavit from the Tyonek Tribal Administrator listed the distance as 514 feet. Mr. Moss noted the state restrictions for the location of a church to a licensed establishment was within a 200 foot radius and the transfer would likely be approved by the Alaska Alcoholic Beverage Control Board.

MOTION: Moss moved to issue a letter of non-objection to the transfer of license as filed by Tebughna Sunset Liquor Store and Tebughna Sunset Café and to approve the restaurant designation permit.

MOTION PASSED: Unanimous.

(10:15:44)

Request for Formal Assembly Objection to the Continuance of the Following Liquor License for a Second Year Because of Unpaid Taxes Due the Borough: [Note: Licenses are issued for a 2-year period. These were originally approved in 2004 for 2004 & 2005.]

Business Name License Location

Alaska Lanes, Inc. Kenai, Alaska

Decanter Inn Kenai, Alaska

Big John's Liquor Soldotna, Alaska

Bing Brown's Sterling, Alaska

Old Town Village Restaurant Kenai, Alaska

King's Inn Hotel Restaurant & Lounge, LLC Kenai, Alaska

Moose Pass Inn Moose Pass, Alaska

One Stop Kenai, Alaska

Starvin Marvin's Inc. Homer, Alaska

Assembly Member Moss said the Finance Department reported the following businesses were now in compliance: Decanter Inn, Big John's Liquor and Bing Brown's.

MOTION: Moss moved to issue a letter of protest to the Alaska Alcoholic Beverage Control Board regarding the continuance of liquor licenses for the following license holders:

Business Name Unpaid Taxes Due to KPB

Alaska Lanes, Inc. $13,832.77

Old Town Village Restaurant $12,168.87

King's Inn Hotel Restaurant & Lounge, LLC $21,679.47

Moose Pass Inn $ 1,901.41

One Stop $ 3,327.89

Starvin Marvin's Inc. $ 2,593.72

MOTION TO ISSUE PROTEST PASSED: Unanimous.

PUBLIC COMMENTS AND PUBLIC PRESENTATIONS (10:17:41)

Fred Sturman, PO Box 513, Soldotna, AK, said he could not hear the discussions at the joint budget work session with the school district. Mr. Sturman expressed his concerns with the borough budget.

Vicki Pate, PO Box 7447, Nikiski, AK, said the borough should utilize the PRISM building and not build a new facility for the emergency operations center. Ms. Pate stated the location of the PRISM facility in relationship to the Kenai Airport and the line of sight radio communications to Anchorage were important factors to consider.

ASSEMBLY MEETING AND HEARING ANNOUNCEMENTS (10:24:50)

The next meeting of the Kenai Peninsula Borough Assembly was scheduled for February 1, 2005, at 7:00 p.m. in the Assembly Chambers, Borough Administration Building, Soldotna, Alaska.

ASSEMBLY COMMENTS (10:25:04)

Assembly Member Sprague noted several assembly members would be traveling to Juneau next week to present the 2005 Capital Project Priorities to the borough's legislators.

Assembly Member Martin appreciated the time Mr. Sturman spent at assembly meetings. Ms. Martin said the new emergency building was needed in the Soldotna area. Assembly Member Martin said the Kachemak Emergency Service Area had new equipment onsite and had responded to several recent house fires. A dedication ceremony for the new McNeil area station was tentatively scheduled for July 2005.

Assembly Member Fischer said the Peninsula Winter Games were scheduled to begin January 22, 2005.

Assembly Member Long said this weekend was the Annual Polar Bear Jump-off Festival in Seward.

Assembly President Superman planned to attend the Board of Fish hearings in Anchorage on January 19, 2005.

ADJOURNMENT (10:34:40)

With no further business to come before the assembly, President Superman adjourned the meeting at 10:34 p.m.

I certify the above represents accurate minutes of the Kenai Peninsula Borough Assembly meeting of January 18, 2005.

Linda S. Murphy, Borough Clerk

Approved by Assembly: