CALL TO ORDER

A Regular Meeting of the Kenai Peninsula Borough Assembly was held on March 15, 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 Steve Brown, Kenai New Life Assembly of God.

There were present:

Gary Superman, Presiding

Dan Chay

Paul Fischer

Betty Glick

Ron Long

Milli Martin (via teleconference)

Chris Moss

Pete Sprague

comprising a quorum of the assembly.

Absent:

Grace Merkes (excused)

Also in attendance were:

Dale Bagley, Borough Mayor

Colette Thompson, Borough Attorney

Linda Murphy, Borough Clerk

Sherry Biggs, Deputy Borough Clerk

COMMITTEE REPORTS (7:03:25)

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

Assembly Member Superman 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 Long reported the Legislative Committee met and discussed its brief agenda. The Committee prioritized the top three federal projects as Arsenic Abatement, CAD System, and the Emergency Operations Center. The Legislative Committee also discussed several pending bills before the state legislature. A request was made for a letter of support for Paul Gray's "Exploring Alaska" television show.

(7:22:17)

MOTION: Long moved to authorize the assembly president to work with the mayor on a letter of support to the state legislature regarding Paul Gray's promotional project.

MOTION PASSED: Without objection.

APPROVAL OF AGENDA AND CONSENT AGENDA (7:23:57)

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The following items were withdrawn by the sponsor:

• Resolution 2005-025: Requesting the Mayor Spend up to $6,000 to Hire an Independent Consultant to Perform a Functional, Social, and Economic Audit of Carts, CEDD, EDD, and General Services Print/Mail (Chay) (Referred to Finance Committee)
• Ordinance 2005-14: Amending KPB 5.12.115, Adjusting the Real Property Tax Exemption for Residential Real Property From $20,000 to $10,000 (Chay) (Hearings on 04/05/05 & 04/19/05) (Referred to Policies and Procedures Committee)

The following item was added to the regular meeting agenda:

• Mayor's Veto of Ordinance 2004-35: "Amending KPB Chapter 1.12 to Provide for Economic Summaries to Be Attached to Proposed Ordinances"

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

• Ordinance 2005-16: Amending KPB 5.18.210 Removing the Sales Tax Exemption for Raw Materials Sales to Licensed Building Contractors (Chay) (Hearings on 05/03/05 & 05/17/05) (Referred to Policies and Procedures Committee)

[Clerk's Note: The sponsor requested the hearing dates be rescheduled to May 3 and May 17, 2005.]

The following amendment was made to the March 1, 2005 minutes:

MOTION: Martin moved to add the following text to the bottom of Page 9 (Vol. 44, Page 140):

"Assembly Member Martin did not feel $94,000 was a fair amount and suggested that prior expenditures by the Cooper Landing seniors be deducted, based on the 30 year amortization schedule. Ms. Martin was uncomfortable in charging the full market value of the property."

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.

• March 1, 2005 Regular Meeting Minutes (as amended)
• Resolution 2005-019: Authorizing Award of a Contract for the Central Peninsula General Hospital, Phase 2, Expansion and Renovation (Mayor) (Referred to Finance Committee)

• Resolution 2005-020: Accepting Rescue Equipment from the Southern Region Emergency Medical Services Council, Inc., on Behalf of Kachemak Emergency Services (Mayor) (Referred to Finance Committee)
• Resolution 2005-021: Urging the Alaska Department of Transportation to Take Immediate Action to Address the Dangerous Conditions Relating to Milepost 166 - 169 of the Sterling Highway (Moss) (Referred to Legislative Committee)
• Resolution 2005-022: Requesting That If the Capital Is Moved the State Consider Moving the Capital to the Kenai Peninsula Borough (Fischer) (Referred to Legislative Committee)
• Resolution 2005-023: Authorizing the Acceptance of Late-Filed Senior Citizen and Disabled Veteran Exemption Applications (Mayor) (Referred to Policies and Procedures Committee)
• Resolution 2005-024: Supporting HB 19 and Alaskan's Right to Know About Pesticide Use in Public Places (Chay) (Referred to Legislative Committee)

[Clerk's Note: The following technical amendment was made to Resolution 2005-024: Section 3 to read, "That a copy of this resolution be sent to Senator Con Bunde, Representative Mike Hawker,..."]

• Ordinance 2004-19-43: Accepting and Appropriating a Grant from the U. S. Department of Homeland Security in the Amount of $51,818 for Firefighting Equipment for Kachemak Emergency Services and Appropriating $5,757 for the Local Match (Mayor) (Hearing on 04/19/05) (Referred to Finance Committee)
• Ordinance 2005-09: Amending the Borough Code to Provide for Increased Revenue Enhancement Measures Including Reducing the Senior Citizen/Disabled Veterans Property Tax Exemption to the First $200,000 in Value of Real Property Otherwise Eligible for the Exemption, Increasing the Borough Sales Tax Rate to 2.5 Percent, Amending KPB 5.18 to Provide that Taxes on Recreational Package Sales Shall be Calculated on a Per-Person Per-Day Basis, Imposing a Cap on the Amount of Funds Held in the Land Trust Fund (Mayor) (Hearings on 04/19/05, 05/03/05 & 05/17/05) (Referred to Finance Committee)
• Ordinance 2005-10: Confirming the Assessment Roll for the Tustumena Terrace Utility Special Assessment District and Establishing the Method for Terminating Assessments and Making Refunds to Property Owners (Mayor) (Hearing on 04/19/05) (Referred to Finance Committee)
• Ordinance 2005-11: Establishing Time, Place, and Manner Restrictions on Sexually Oriented Businesses in the Rural District of the Kenai Peninsula Borough (Martin) (Hearings on 04/19/05 & 05/03/05) (Referred to Lands Committee)
• Ordinance 2005-12: Amending KPB 5.18.450 to Provide Parity Between Local and Out of Jurisdiction Service Providers (Chay) (Hearings on 04/05/05 & 04/19/05) (Referred to Policies and Procedures Committee)
• Ordinance 2005-13: Amending KPB 21.26.030 (A)(3) to Clarify Conditions for Material Site Permits (Chay) (Hearings on 08/02/05 and 08/16/05) (Referred to Lands Committee)

[Clerk's Note: The sponsor requested the hearing dates be rescheduled to August 2 and August 16, 2005, with the ordinance referred to the KPB Planning Commission.]

• Ordinance 2005-15: Amending KPB 5.18.430 to Delete Subparagraph B, Which Provides that Service Provided on Account are Taxed on a Maximum of $500 for Each Billing Per Account (Chay) (Hearings on 05/03/05 & 05/17/05) (Referred to Finance Committee)

[Clerk's Note: The sponsor requested the hearing dates be rescheduled to May 3 and May 17, 2005.]

• Petition to vacate a portion of Silver Salmon Drive, dedicated by Moose River Estates Subdivision (Plat KN 74-98); within Sections 13, Township 5, North, Range 9 West, Seward Meridian, Alaska; and the Kenai Peninsula Borough. KPB File 2004-237 (Note: 10' additional Right-of-Way Proposed to be granted if vacation is approved) (Referred to Lands Committee)

[Clerk's Note: The Planning Commission approved the above referenced vacation by unanimous consent during its regularly scheduled February 28, 2005 meeting.]

President Superman called for public comment on consent agenda items. (7:39:05)

The following person spoke in opposition to Ordinance 2005-09:

Ruby Kime, Alice Avenue, Ninilchik, AK

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

AGENDAS APPROVED AS AMENDED: Unanimous.

COMMENDING RESOLUTIONS AND PROCLAMATIONS - None.

PRESENTATIONS WITH PRIOR NOTICE (7:43:04)

Mayor Dale Bagley, President of the 2006 Arctic Winter Games (AWG) Host Society, said members of the AWG International Committee recently visited the peninsula and met with the various AWG committees. Mayor Bagley said interviews had been conducted for the position of AWG General Manager, and he anticipated having the new person on staff March 18, 2005.

Chris Hayes, Sports Manager for 2006 Arctic Winter Games, provided a quarterly update on the sporting activities planned for the games.

Kathy Moore, 2006 AWG Volunteer Manager, explained the process underway to garner 3,000 volunteers.

PUBLIC COMMENTS ON ITEMS NOT APPEARING ON THE AGENDA (7:58:10)

Don Johnson, PO Box 876, Soldotna, AK, discussed how the borough spent and secured funding.

REPORTS OF COMMISSIONS AND COUNCILS - None.

MAYOR'S REPORT (8:03:12)

Approval of sole source contract with Mackey Lake Welding for Baler Rebuild/Reline at Central Peninsula Landfill

Approval of bid award and contract with Alaska Oil Sales for fuel supply and deliver at Central Peninsula Landfill

Other

Memo from Gary Davis, Roads Director, regarding the Kenai Spur Extension Project

Mayor Bagley said he would be sponsoring a resolution to continue with the Spur Road Extension Project.

PUBLIC HEARINGS ON ORDINANCES (8:09:04)

Ordinance 2004-19-39: Transferring $53,871.48 to the Road Service Area Henry Creek Bridge Capital Improvement Project from Completed Capital Improvement Projects and Awarding the Henry Creek Bridge Project to Covey Enterprises (Mayor) (Referred to Finance Committee)

MOTION: Moss moved to enact Ordinance 2004-19-39.

Assembly Member Moss said the project was originally approved by the Road Service Area, but lacked the additional funding needed to complete the project.

President Superman called for public comment with none being offered.

MOTION TO AMEND: Moss moved to amend Ordinance 2004-19-39 as follows:

Section 1, to read, "...Amount to be Transferred

$8,114.60 [$8,144.60]

$45,756.88 [$45,726.88]

VOTE ON MOTION TO AMEND:

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

No: None

Absent: Merkes

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

VOTE ON MOTION TO ENACT AS AMENDED:

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

No: None

Absent: Merkes

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

(8:12:33) 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) (Second of Four Hearings) (Referred to Policies and Procedures Committee)

[Clerk's Note: There was a motion to enact on the floor from the March 1, 2005 meeting.]

President Superman called for public comment.

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

Leah Handley, 61230 Cottonwood Lane, Homer, AK, spoke on behalf of the Homer Bed and Breakfast Association

Irene Fandel, 702 Lawton Drive, Kenai, AK

Herman Fandel, 702 Lawton Drive, Kenai, AK

Cheri Edwards, 363 N. Aspen Drive, # 7, Soldotna, AK, suggested a tourism tax.

Joe Conners, Roy & Greatlands Road, Sterling, AK, suggested a seasonal sales tax increase.

Don Johnson, PO Box 876, Soldotna, AK

Lo Detwieler, 58856 East End Road, Homer, AK

Fred Sturman, PO Box 513, Soldotna, AK

Larry Smith, 18226 Sterling Highway, Cooper Landing, AK

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

Sharon Brower, 48570 N. Earl Drive, Kenai, AK

Delora Garcia, 2528 Beaver Loop Drive, Kenai, AK

Mya Renken, 11471 Kenai Spur Highway, Sterling, AK

Aud Walaszek, 21640 Bull Moose, Kasilof, AK, spoke on behalf of the Kenai Peninsula Tourism Marketing Council

Steve Anderson, 399 Lovers Lane, Soldotna, AK

Vicki Pate, PO Box 7447, Nikiski, AK, suggested a seasonal bed tax.

Linda Heath, 37288 King Salmon Place, Soldotna, AK

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

(9:33:12)

Assembly Member Glick said she sponsored this ordinance in response to discussions last year to increase both the sales tax cap and the mill levy. Ms. Glick did not wish to continue taxing only local residents and property owners and proposed the bed tax to include visitors. Ms. Glick said she would be introducing a substitute ordinance.

MOTION TO POSTPONE: Glick moved to postpone Ordinance 2005-05 until April 5, 2005.

VOTE ON MOTION TO POSTPONE:

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

No: None

Absent: Merkes

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

NEW BUSINESS (9:38:10)

Ordinance 2005-16: Amending KPB 5.18.210 Removing the Sales Tax Exemption for Raw Materials Sales to Licensed Building Contractors (Chay) (Hearings on 05/03/05 & 05/17/05) (Referred to Policies and Procedures Committee)

[Clerk's Note: Prior to final approval of agenda and consent agenda, Assembly Member Chay moved to change the hearing dates to May 3 and May 17, 2005. ]

President Superman called for public comment.

The following people spoke in opposition to Ordinance 2005-16:

Richard Cockroft, PO Box 2588 Soldotna, AK

Larry Smith, 320 Katmai Street, Soldotna, AK, spoke on behalf of the Kenai Peninsula Builders Association

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

(9:45:03)

The gavel was passed to Vice President Long. Mr. Superman spoke in opposition to Ordinance 2005-16. The gavel was returned to President Superman.

VOTE ON MOTION TO INTRODUCE

AND SET FOR PUBLIC HEARING:

Yes: Chay, Moss, Sprague

No: Fischer, Glick, Long, Martin, Superman

Absent: Merkes

MOTION TO INTRODUCE AND SET

PUBLIC HEARING FAILED: 3 Yes, 5 No, 1 Absent

(9:47:33)

Mayor's Veto of Ordinance 2004-35: "Amending KPB Chapter 1.12 to Provide for Economic Summaries to Be Attached to Proposed Ordinances"

President Superman said Mayor Bagley had issued a veto of Ordinance 2004-35 on March 15, 2005.

Borough Clerk Linda Murphy explained the veto procedures as outlined in Alaska Statutes Title 29. The assembly had 21 days or until the next assembly meeting to take action on the Mayor's veto. With no motion from the assembly, this item of business was scheduled for the April 5, 2005 assembly meeting.

PUBLIC COMMENTS AND PUBLIC PRESENTATIONS - None.

ASSEMBLY MEETING AND HEARING ANNOUNCEMENTS (9:49:28)

• Public Hearing on Ordinance 2005-05 Homer City Hall 03/28/05 6:30 p.m.

• The next meeting of the Kenai Peninsula Borough Assembly was scheduled for April 5, 2005, at 7:00 p.m. in the Assembly Chambers, Borough Administration Building, Soldotna, Alaska.

ASSEMBLY COMMENTS (9:50:33)

Assembly Member Chay appreciated the discussions generated tonight and said there were several budget options available.

Assembly Member Fischer recently paid 12 percent sales tax in Las Vegas.

Assembly Member Glick also thanked those who offered their opinion on the bed tax issue.

Assembly Member Martin thanked those individuals who provided testimony tonight. Ms. Martin said land assessments had nearly doubled in the Homer area. Ms. Martin appreciated the opportunity to travel to Washington, DC.

Assembly Member Long reported on the assembly's lobbying trip to Washington, DC. Mr. Long noted an Anchorage assembly member was proposing the implementation of a local sales tax.

Assembly President Superman said it was a false assumption that the entire assembly supported the bed tax issue. Mr. Superman was most troubled by local property tax increases. President Superman also noted the tax exemption for senior citizens would soon be discussed by the assembly. While in Washington, DC, Mr. Superman and Mr. Sprague had attended an energy meeting and heard much misinformation on the TransAlaska Pipeline and ANWR issues. Mr. Superman hoped for a favorable vote from the U.S. Senate on opening ANWR.

ADJOURNMENT (10:06:33)

With no further business to come before the assembly, President Superman adjourned the meeting at 10:06 p.m.

I certify the above represents accurate minutes of the Kenai Peninsula Borough Assembly meeting of March 15, 2005.

Approved by Assembly: