CALL TO ORDER

A Regular Meeting of the Kenai Peninsula Borough Assembly was held on February 1, 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 Dan Thornton, Peninsula Grace Brethren, Soldotna.

There were present:

Gary Superman, Presiding

Dan Chay

Paul Fischer

Betty Glick

Ron Long

Milli Martin

Grace Merkes

Pete Sprague

comprising a quorum of the assembly.

Absent:

Chris Moss (excused)

Also in attendance were:

Ed Oberts, Assistant to the Mayor

Colette Thompson, Borough Attorney

Linda Murphy, Borough Clerk

Sherry Biggs, Deputy Borough Clerk

COMMITTEE REPORTS (7:03:35)

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 items.

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

Assembly Member Long said the Legislative Committee met and discussed the 2005 Federal Priorities. The Committee also heard reports from those assembly members who traveled to Juneau to present the 2005 Capital Priority Project books to the peninsula's legislative delegation.

(7:17:48)

MOTION: Long moved to authorize the assembly president, in concert with Mr. Moss, to send a letter to the North Pacific Fishery Management Council regarding the Childers report on groundfish regionalization.

MOTION TO TABLE: Long moved to table the motion and address it as the last item of business this evening.

MOTION TO TABLE PASSED: Without objection.

APPROVAL OF AGENDA AND CONSENT AGENDA (7:20:31)

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.

The following item was moved from the consent agenda to the regular agenda:

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.

January 18, 2005 Special Meeting Minutes

Resolution 2005-013: Accepting a $45,000 Grant from the Alaska Department of Military and Veterans Affairs, Division of Homeland Security and Emergency Management, for Emergency Management Operations (Mayor) (Referred to Finance Committee)

Ordinance 2005-04: Enacting KPB 5.08.025 Establishing Guidelines for Service Areas to Borrow Money from the General Fund for Capital Acquisitions (Martin) (Hearing on 03/01/05) (Referred to Policies and Procedures Committee)

Ordinance 2005-05: Enacting KPB Chapter 5.19, Providing for a Transient Accommodations Tax and Providing for the Submission to the Voters of a Proposition Authorizing the Borough to Impose this Tax (Glick) (Hearings on 03/01/05, 03/15/05 and 04/05/05) (Referred to Policies and Procedures Committee)

Ordinance 2004-19-35: Appropriating $213,956 to the Special Assessment Fund for West Brook Estate Road Improvement Special Assessment District (Mayor) (Hearing on 03/01/05) (Referred to Finance Committee)

Ordinance 2004-19-36: Accepting a $100,200 Grant from the Denali Commission and Appropriating the Grant and Additional Funds of $41,800 to the Solid Waste Department for Burnboxes in Nanwalek and Seldovia (Mayor) (Hearing on 03/01/05) (Referred to Finance Committee)

Ordinance 2004-19-37: Accepting and Appropriating a $9,000 Grant from the State of Alaska for a Floodplain Management Workshop (Mayor) (Hearing on 03/01/05) (Referred to Finance Committee)

Ordinance 2004-19-38: Accepting an Ambulance from the Southern Region Emergency Medical Services Council, Inc. and Appropriating Matching Funds in the Amount of $7,500 on Behalf of Kachemak Emergency Services (Mayor) (Hearing on 03/01/05) (Referred to Finance Committee)

President Superman called for public comment on consent agenda items.

The following person spoke in opposition to Ordinance 2005-05:

David Carey, 119 Shady Lane, Soldotna, AK

The following people spoke in favor of Ordinance 2005-05:

Lloyd Schade, 35250 Schade Drive, Homer, AK

Steve Anderson, 399 Lovers Lane, Soldotna, AK

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

AGENDAS APPROVED AS AMENDED: Unanimous.

COMMENDING RESOLUTIONS AND PROCLAMATIONS - None.

PRESENTATIONS WITH PRIOR NOTICE (7:36:41)

Mary Lou Pratt, Randy Sears, and Jeff Panthages of Alaska Permanent Capital Management Company, provided a portfolio and market review of the borough's investments for the reporting period of July 31, 2003 to December 31, 2004.

Finance Director Scott Holt presented the Government Finance Officers Association's Distinguished Budget Presentation Award for the fiscal year beginning July 1, 2004, to KPB Budget Officer Cathey Wallace.

PUBLIC COMMENTS ON ITEMS NOT APPEARING ON THE AGENDA (8:14:44)

Fred Sturman, PO Box 513, Soldotna, AK, discussed the April 2004 McDowell Group report on the Agrium plant closure.

David Martin, 71605 Sterling Highway, Clam Gulch, AK, reported on recent Board of Fish changes to sport and commercial fishing regulations.

REPORTS OF COMMISSIONS AND COUNCILS - None.

MAYOR'S REPORT (8:25:21)

Spruce Bark Beetle Mitigation Program:

• Approval of contract with Tinker Creek Surveys for Highland Drive #2 Surveying Project
• Approval of contract with Alaska Map Company for GIS and Data Base Training Support for KPB Spruce Bark Beetle Mitigation Program
• Approval of contact with Skookum Construction for James Road #1 ROW Project
• Approval of contact with Skookum Construction for James Road #2 ROW Project
• Approval of contact with Skookum Construction for Sterling Highway NE #3 ROW Project
• Approval of contract with Doug Koch Tree Service for Sterling Highway NE #5 ROW Project\
• Approval of contract with Rozak Engineering for Updating KPB Draft Spill Prevention Plan at Ninilchik Elementary School
• Approval of contract with Cooper and Company to locate photo control points used to assess the feasibility of a gravel pit in the Cooper Landing area
• Approval of bid award to Mullikin Surveys for surveying services to facilitate the conveyance of municipal entitlement lands in the Cooper Landing area

• Sterling Senior Citizens, Inc. Progress Report for the Sterling Moose River Manor Senior Housing Project

• Central Peninsula Landfill Operations Update - January 19, 2005

Assembly Member Sprague asked about the equipment delivery delays and associated costs incurred by the Central Peninsula Landfill. Ed Oberts, Assistant to the Mayor, said he would provide that information at a later date.

Assembly Member Fischer asked for information on the Volcano Learning Center. Mr. Oberts said he would supply the requested information.

Assembly Member Merkes asked about the new positions at the Central Peninsula Landfill. Mr. Oberts stated Solid Waste Director Cathy Mayer had discussed that at a previous meeting and would get additional information to Ms. Merkes.

PUBLIC HEARINGS ON ORDINANCES (8:28:22)

Ordinance 2005-01: Repealing KPB 3.04.310(A) Regarding Health Insurance Premiums (Mayor) (Referred to Finance Committee)

MOTION: Glick moved to enact Ordinance 2005-01.

President Superman called for public comment with none being offered.

MOTION TO AMEND: Glick moved to amend Ordinance 2005-01 as follows:

Section 3 to read, "That this ordinance takes effect retroactive to January 1, 2005 [IMMEDIATELY UPON ITS ENACTMENT]."

MOTION TO AMEND PASSED: Without objection.

VOTE ON MOTION TO ENACT AS AMENDED:

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

No: None

Absent: Moss

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

(8:30:45)

Ordinance 2005-02: Amending KPB 2.56.040 to Incorporate the Goals of the City of Soldotna Action Plan into the 1995 Soldotna Comprehensive Plan (Mayor) (Referred to Lands Committee)

MOTION: Merkes moved to enact Ordinance 2005-02.

Assembly Member Merkes said an ordinance from the City of Soldotna was required, not a resolution, and a postponement was forthcoming.

President Superman called for public comment with none being offered.

MOTION: Merkes moved to postpone Ordinance 2005-02 until February 15, 2005.

VOTE ON MOTION TO POSTPONE:

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

No: None

Absent: Moss

MOTION TO POSTPONE PASSED: 8 Yes, 0 No, 1 Absent (8:32:56)

Ordinance 2004-19-33: Rescinding an Unused Appropriation of $60,000 to the School Capital Improvement Fund and Returning the Funds to the Land Trust Fund (Mayor) (Referred to Finance Committee)

MOTION: Glick moved to enact Ordinance 2004-19-33.

President Superman called for public comment with none being offered.

VOTE ON MOTION TO ENACT:

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

No: None

Absent: Moss

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

(8:34:11)

NEW BUSINESS

Ordinance 2005-06: Authorizing the Lease and Sale of land in the Cooper Landing Area to the Cooper Landing Senior Citizen Corporation, Inc. at Less Than Fair Market Value (Mayor) (Hearing on 03/01/05) (Referred to Lands Committee)

Marcus Mueller, KPB Land Management Agent, presented information on the proposed land for the Cooper Landing senior housing project and explained certain leasing options.

MOTION: Merkes moved to introduce Ordinance 2005-06 and set a public hearing date of March 1, 2005.

VOTE ON MOTION TO INTRODUCE

AND SET PUBLIC HEARING DATE:

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

No: None

Absent: Moss

MOTION TO INTRODUCE AND

SET PUBLIC HEARING DATE PASSED: 8 Yes, 0 No, 1 Absent

(8:50:27)

MOTION: Long moved to take from the table the motion on groundfish regionalization.

VOTE ON MOTION:

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

No: None

Absent: Moss

MOTION PASSED: 8 Yes, 0 No, 1 Absent

[Clerk's Note: The motion before the assembly was to authorize the Assembly President, in concert with Mr. Moss, to send a letter to the North Pacific Fishery Management Council (NPFMC) regarding the Childers report on groundfish regionalization.]

Assembly Member Long said the report focused on Pacific cod groundings.

MOTION TO AMEND: Sprague moved to include Mr. Long as a co-author of the letter to NPFMC.

VOTE ON MOTION TO AMEND:

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

No: None

Absent: Moss

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

VOTE ON MOTION AS AMENDED:

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

No: None

Absent: Moss

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

PUBLIC COMMENTS AND PUBLIC PRESENTATIONS (8:58:15)

Fred Sturman, PO Box 513, Soldotna, AK, expressed his concern regarding the borough's economic outlook.

ASSEMBLY MEETING AND HEARING ANNOUNCEMENTS (9:03:03)

The next meeting of the Kenai Peninsula Borough Assembly was scheduled for February 15, 2005, at 7:00 p.m. in the Assembly Chambers, Borough Administration Building, Soldotna, Alaska.

ASSEMBLY COMMENTS (9:04:11)

Assembly Member Chay said the natural gas situation should not revolve around high risk exploration but on a pipeline to the Peninsula.

Assembly Member Glick said resource development depended heavily on global markets.

Assembly Member Martin expressed her concern regarding the small salmon fry in Skilak Lake.

Assembly Member Fischer requested an excused absence for March 1, 2005.

Assembly President Superman commented on the earlier remark that ConocoPhillips may close. Mr. Superman said that was speculation. Mr. Superman said the Senate Resources Committee was scheduled to visit the Peninsula February 10 and 11, 2005.

ADJOURNMENT (9:17:15)

With no further business to come before the assembly, President Superman adjourned the meeting at 9:17 p.m.

I certify the above represents accurate minutes of the Kenai Peninsula Borough Assembly meeting of February 1, 2005.

Approved by Assembly: