CALL TO ORDER

A Regular Meeting of the Kenai Peninsula Borough Assembly was held on April 19, 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 Rick Cupp, Kenai Fellowship.

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 said the Finance Committee met and discussed its agenda items.

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

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.

APPROVAL OF AGENDA AND CONSENT AGENDA (7:21:15)

MOTION TO APPROVE AGENDAS: Martin 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:

• Resolution 2005-033: Supporting Efforts to Purchase the Corr Property Near Soldotna, Alaska located along the Kenai River for Inclusion into the Kenai River Special Management Area (Sprague) (Referred to Lands Committee)

MOTION: Long moved to suspend the rules and address Resolution 2005-028 as Item M(2).

MOTION PASSED: Unanimous.

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 28, 2005 Homer Public Hearing

• April 5, 2005 Regular Meeting Minutes
• Resolution 2005-031: Authorizing Award of a Contract for the Road Service Area Bruno Bridge Rehabilitation Capital Improvement Project (Mayor) (Referred to Finance Committee)

[Clerk's Note: The following technical amendments were made to Resolution 2005-031:

Third Whereas to read, "the Road Service Area received seven (7) bids; and"

Fourth Whereas to read, "the low responsive bidder is Endries Company;"

Section 1 to read, "That the mayor is authorized to award a contract to Endries Company to perform the work for the bid amount of $113,206."]

• Resolution 2005-032: Authorizing the Lease of Lot 82, Tyonek Teacher Housing Subdivision, According to KPB Preliminary Plat No. 2005-012, from the Tyonek Native Corporation for Teacher Housing in the Native Village of Tyonek (Mayor) (Referred to Lands Committee)

[Clerk's Note: The following technical amendment was made to Resolution 2005-032: Section 3 to read, "The expenditures for the lease will be charged to account number 100.11460.00000.4410."]

• Resolution 2005-034: Supporting Senate Bill 102 and House Bill 146 Relating to an Extension of Time for Coastal Districts to Submit Revisions to Their Coastal Management Programs (Martin) (Referred to Legislative Committee)

[Clerk's Note: The following technical amendments were made to Resolution 2005-034:

Title to read, "A Resolution Supporting Senate Bill 102 and House Bill 146 relating to an Extension of Time for Coastal Districts to Submit Revisions to their Coastal Management Programs"

Final Whereas to read, "Senate Bill 102 and House Bill 146 provide coastal districts a 6 [12] month extension of time for plan submission..."

Section 1 to read, "The Kenai Peninsula Borough Assembly supports Senate Bill 102 and House Bill 146 granting an extension of time..."

Add a new Section 3 to read, "That copies of this resolution shall be sent to Governor Frank

Murkowski and all state legislators."]

• Resolution 2005-035: Urging Members of the Senate and the House of Representatives to Promptly Meet and Work Together to Develop Legislation that will Provide Adequate Relief to Municipalities for the Public Employee Retirement System and Teacher Retirement System Deficit (Martin) (Referred to Legislative Committee)

[Clerk's Note: The following technical amendment was made to Resolution 2005-035:

First Whereas to read, "the Senate Finance Committee has passed [BEEN CONSIDERING]

Senate Bill 141..."]

• Resolution 2005-036: Determining the Amount to be Provided from Local Sources for School Purposes During Fiscal Year 2005-2006 (Mayor) (Referred to Finance Committee)

[Clerk's Note: Resolution 2005-036 was postponed to May 3, 2005.]

• Ordinance 2004-19-50: Accepting and Appropriating a Grant from the U. S. Department of Homeland Security in the Amount of $8,271 for the Bear Creek Fire Service Area for Fire Prevention and Safety (Mayor) (Hearing on 05/17/05) (Referred to Finance Committee)
• Ordinance 2005-19: Appropriating Funds for Fiscal Year 2005-2006 (Mayor) (Hearings on 05/03/05 & 05/17/05) (Referred to Finance Committee)
• Ordinance 2005-21: Authorizing the Disposition of Certain Real Property Through a Memorandum of Agreement Between the Kenai Peninsula Borough, the State of Alaska Department of Transportation and Public Facilities, and the State of Alaska Department of Administration Enterprise Technology Service (Mayor) (Hearing on 05/17/05) (Referred to Lands Committee)
• Ordinance 2005-022: Amending KPB 4.13.140(A) and 4.13.150(A) Regarding the Scheduling of Elections Concerning Initiative and Referendum Petitions (Superman at the request of the Borough Clerk) (Hearing on 05/17/05) (Referred to Policies and Procedures Committee)
• Petition to vacate the westerly 2640 foot portion of the 100-foot wide section-line easement (50-feet on each side of the section line) common to Section 19 and 30, Township 4 South, Range 13 West, Seward Meridian, Alaska; and within the Kenai Peninsula Borough; KPB File 2004-098 (Referred to Lands Committee)

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

• Petition to vacate River Ramp Court a 60-foot public Right-of-Way, and associated public utility easements, dedicated by Riverwood Subdivision Phase One (Plat KN 84-182); within Section 7, Township 5 North, Range 10 West, Seward Meridian, Alaska; and within the Kenai Peninsula Borough; KPB File 2005-044 (Referred to Lands Committee)

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

• Petition to vacate a portion of Crustacean Avenue and associated utility easement adjacent to Tract B, dedicated by Beach View Subdivision (Plat KN 2004-51); within Section 24, Township 4 North, Range 12 West, Seward Meridian, Alaska; and within the Kenai Peninsula Borough; KPB File 2005-052 (Referred to Lands Committee)

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

• Petition to vacate a portion of a section line easement within Lot 4 Rozak Stariski Point Subdivision (Plat HM 2002-17) AND Vacate Sonnichsen Avenue and all adjacent utility easements associated with Sonnichsen Avenue; Section 25 and Section 36, Township 3 South, Range 15 West, Seward Meridian, Alaska; and within the Kenai Peninsula Borough; KPB File 2005-053 &KPB File 2005-059; (Note: Additional Section Line Easement is being granted) (Referred to Lands Committee)

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

• Petition to vacate a 33-foot section line easement along the west boundary of Tract A Van Sky Subdivision No 3 Amended (Plat KN 2000-40 & 2001-9); Section 23, Township 7 North, Range 12 West, Seward Meridian, Alaska; and within the Kenai Peninsula Borough. KPB File 2005-054 (Referred to Lands Committee)

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

• Withdrawing the 01/04/05 Protest and Approving the Application for New Liquor License filed by Kenai River Raven Lodge in Soldotna, Alaska (Referred to Finance Committee)
• Confirming the Appointment of Christopher D. Mokracek as the new Central Emergency Services Chief (Referred to Policies and Procedures Committee)
• Confirming an Appointment to the Anchor Point Advisory Planning Commission (Mayor) (Referred to Policies and Procedures Committee)

Brok Shafer Seat C Term Expires September 30, 2005

• Approving the Application for Restaurant Designation filed by The Homestead Fine Dining, Inc. d/b/a The Homestead Restaurant (Referred to Finance Committee)

President Superman called for public comment on consent agenda items. (7:34:14)

Lloyd Schade, 35250 Schade Drive, Homer, AK, spoke about bed tax issues, tourists, and grants to the borough.

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

AGENDAS APPROVED AS AMENDED: Unanimous.

(7:39:24)

SWEARING IN NEW DEPARTMENT HEAD

Borough Clerk Linda Murphy swore in Christopher D. Mokracek as the new Central Emergency Services Chief.

COMMENDING RESOLUTIONS AND PROCLAMATIONS (7:40:29)

Mayor Bagley proclaimed May 1 - 8, 2005 as "Cover the Uninsured Week" and presented a proclamation to Jane Stein of Bridges Community Resource Network.

PRESENTATIONS WITH PRIOR NOTICE (7:42:18)

Loretta Flanders, president of Central Peninsula General Hospital, Inc., presented a report of activities for the quarter ended March 31, 2005.

PUBLIC COMMENTS ON ITEMS NOT APPEARING ON THE AGENDA (8:01:44

Ruby Kime, Alice Avenue, Ninilchik, AK, referred to a recent letter to the editor in the Peninsula Clarion regarding borough expenditures.

Lloyd Schade, 35250 Schade Drive, Homer, AK, expressed concern with firefighting equipment purchased for Kachemak Emergency Service Area.

Vicki Pate, PO Box 7447, Nikiski, AK, discussed proposed revenue from the Arctic Winter Games (AWG). Ms. Pate heard a rumor that many AWG contracts had been let to Anchorage businesses.

Fred Sturman, PO Box 513, Soldotna, AK, said proposed budget documents were available.

Earl Miller, 33526 Johnson Drive, Soldotna, AK, discussed the proposed transient tax.

Doug Anderson, North Road, Nikiski, AK, suggested the borough stop accepting grants thereby eliminating associated operating costs.

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

REPORTS OF COMMISSIONS AND COUNCILS - None.

MAYOR'S REPORT (8:19:44)

Spruce Bark Beetle Mitigation Program:

• Approval of contract with Tinker Creek Surveys for College Road Surveying Project
• Approval of contract with Segesser Surveys for North Fork #2 Surveying Project
• Approval of contract with Segesser Surveys for North Fork #3 Surveying Project
• Approval of contract with Segesser Surveys for North Fork #4 Surveying Project
• Approval of contract with Paul's Services for Voznesenka ROW #1 Add-ons

Approval of bid award to Alaskan Industries for Multi-Purpose Room Flooring Replacement at Seward Elementary School

Other

Budget Revisions - March 2005

Revenue - Expenditure Report - March 2005

ITEMS NOT COMPLETED FROM PRIOR AGENDA (8:20:08)

Resolution 2005-029: Supporting the Continuation of the Kenai Spur Extension Road Project (Mayor) (Referred to Finance Committee)

MOTION: Moss moved to adopt Resolution 2005-029.

Assembly Member Moss said part of the extension project was to identify which sort of environmental study was required. It was determined than an Environmental Impact Statement (EIS) would be required at a cost of $2.3 - $2.7 Million.

President Superman called for public comment.

The following people spoke in favor of Resolution 2005-029:

Glenn Schrader, 39520 Strawberry Road, Kenai, AK

Joan Bennett Schrader, 39520 Strawberry Road, Kenai, AK

Tim O'Brien, 49181 Freda Drive, Nikiski, AK

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

KPB Roads Director Gary Davis provided financial information and Road Service Area background on the required $425,000 cash match requirement.

(8:51:26)

MOTION TO POSTPONE: Sprague moved to postpone Resolution 2005-029 to May 17, 2005.

MOTION TO AMEND: Moss moved to postpone Resolution 2005-029 until July 12, 2005.

MOTION TO AMEND PASSED: Unanimous.

MOTION TO POSTPONE

AS AMENDED PASSED: Unanimous.

(8:54:16)

Resolution 2005-028: Supporting HB 195 "An Act Appropriating Funds to Reimburse Municipalities for Real Property Tax Revenue Lost Due to the Mandatory Senior Citizen and Disabled Veterans Exemptions" (Superman) (Referred to Legislative Committee)

[Clerk's Note: There was a motion to adopt on the floor from the April 5, 2005 meeting.]

President Superman called for public comment with none being offered.

(8:58:05)

The gavel was passed to Vice President Long. Assembly President Superman spoke in favor of Resolution 2005-028 and said several members of the assembly were traveling to Juneau to seek this reimbursement from the state. The gavel was returned to President Superman.

MOTION TO ADOPT PASSED: Unanimous.

PUBLIC HEARINGS ON ORDINANCES (9:13:29)

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) (Referred to Finance Committee)

MOTION: Moss moved to enact Ordinance 2004-19-43.

President Superman called for public comment.

The following person spoke in opposition to Ordinance 2004-19-43:

Ruby Kime, Alice Avenue, Ninilchik, AK

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

MOTION TO ENACT PASSED: Unanimous.

(9:23:38)

Ordinance 2005-07: Amending KPB 5.12.105(A) to Limit the Property Tax Exemption for Senior Citizens, Disabled Veterans, and Surviving Spouses Thereof to $300,000 in Assessed Value (Sprague) (Referred to Policies and Procedures Committee)

[Clerk's Note: There was a motion to enact on the floor from the April 5, 2005 meeting.]

President Superman called for public comment.

The following people spoke in opposition to Ordinance 2005-07:

Hardin Terrel, 737 Fireweed Avenue, Homer, AK

Dorothy Westphal, Mile 76.5 Sterling Highway, Sterling, AK

Diane Smith, 32900 Rio Gracicoso, Soldotna, AK

Earl Miller, 33526 Johnson Drive, Soldotna, AK

Bill Warren, PO Box 906, Kenai, AK

Joyce Eischen, PO Box 689, Sterling, AK

Fred Sturman, PO Box 513, Soldotna, AK

Terry Moxey, PO Box 621, Sterling, AK

Vicki Pate, PO Box 7447, Nikiski, AK

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

Assembly Member Sprague noted that Ordinance 2005-09 also dealt with senior exemptions and suggested that Ordinance 2005-07 be voted down and address the exemptions in Ordinance 2005-09.

MOTION TO ENACT FAILED: Unanimous.

(9:59:45)

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) (First of Three Hearings) (Referred to Finance Committee)

MOTION: Moss moved to enact Ordinance 2005-09.

President Superman called for public comment.

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

Hardin Terrel, 737 Fireweed Avenue, Homer, AK

Dick Bogard, PO Box 1404, Sterling, AK

Earl Miller, 33526 Johnson Drive, Soldotna, AK

Fred Sturman, PO Box 513, Soldotna, AK

Ruby Kime, Alice Avenue, Ninilchik, AK

Vicki Pate, PO Box 7447, Nikiski, AK

Melvin Bailey, Sterling, AK

Bill Warren, PO Box 906, Kenai, AK

Terry Moxey, PO Box 621, Sterling, AK

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

[Clerk's Note: An amendment was made by Assembly Member Fischer to delete all references to capping the senior citizen / disabled veterans property tax exemption. Much discussion ensued. Mr. Fischer later withdrew his motion.]

MOTION TO POSTPONE: Moss moved to postpone Ordinance 2005-09 until the next scheduled public hearing date of May 3, 2005.

MOTION TO POSTPONE PASSED: Unanimous.

(11:04:12) 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) (Referred to Finance Committee)

MOTION: Moss moved to enact Ordinance 2005-10.

Assembly Member Moss said all approvals were in place for the special utility district to proceed. Mr. Moss said there were amendments forthcoming.

President Superman called for public comment with none being offered.

MOTION TO AMEND: Moss moved to amend Ordinance 2005-10 as follows:

Section 4 to read, "...Interest on the unpaid amount of the assessment shall accrue at the rate of 7.75% [7.50%] per annum..."

And to amend the assessment roll by substitution, as the updated roll listed two new property owners.

MOTION TO AMEND PASSED: Without objection.

MOTION TO ENACT AS AMENDED PASSED: Unanimous. (11:07:07)

Ordinance 2005-11: Establishing Time, Place, and Manner Restrictions on Sexually Oriented Businesses in the Rural District of the Kenai Peninsula Borough (Martin) (First of Two Hearings) (Referred to Lands Committee)

MOTION: Merkes moved to enact Ordinance 2005-11.

Assembly Member Merkes said several amendments were anticipated.

President Superman called for public comment with none being offered.

(11:08:x

MOTION TO AMEND: Martin moved to amend Ordinance 2005-11 as follows:

Eighth Whereas to read, "it is important to protect the constitutional rights of [PROPOSED] persons associated with [SUCH] sexually oriented businesses, and ..."

Section 1 to read, "21.29.101 Purpose...crime property devaluation and [PROTECTION OF] to protect our community's youth..."

"21.29.090 Location of sexually oriented businesses. (A) A permit may not be granted if the SOB is to be located within [500] 1,000 feet of..."

"21.29.090(A)(2)...includes the school grounds [, BUT DOES NOT INCLUDE FACILITIES USED PRIMARILY FOR ANOTHER PURPOSE AND ONLY INCIDENTALLY AS A SCHOOL];"

"21.29.090(A)(4)...basketball or tennis courts, [PEDESTRIAN/BICYCLE PATHS,] wilderness areas..."

"21.29.090(A)(6)...A licensed premises that sells distilled spirits to the public, licensed pursuant..."

"21.29.090(C)...transfer of ownership or control of a SOB within [500] 1,000 feet of another SOB."

"21.29.090(E)...[DISTANCE TO A BIKE BATH SHALL BE MEASURED TO THE CENTER OF THE IMPROVED PATHWAY.]"

"21.29.140(B) It shall be a violation of this ordinance by the owner or operator or employee for an employee, while nude or semi-nude in a SOB, to solicit..."

Section 2 to read, [BICYCLE PATH MEANS A PUBLIC WAY, NOT PART OF A HIGHWAY, ALTHOUGH IT MAY BE WITHIN A HIGHWAY RIGHT-OF-WAY, THAT IS DESIGNATED BY OFFICIAL SIGNS OR MARKINGS FOR USE BY PERSONS RIDING BICYCLES EXCEPT AS OTHERWISE SPECIFICALLY PROVED BY LAW.]

Section 2 to read, "Principal business purpose with regard to adult bookstore, adult novelty store, or adult video store means any one of the following:

1. Forty percent or more of the gross floor space is devoted to use as an adult bookstore, adult novelty store, or adult video store.

2. Forty percent or more of the inventory consists of adult bookstore, adult novelty store or adult video store use.

3. It advertises or holds itself out in any forum as "XXX," "adult," "sex," or otherwise as a sexually oriented business and has inventory found in adult bookstores, adult novel stores, or adult video stores."

MOTION TO AMEND PASSED: Unanimous.

MOTION TO POSTPONE: Martin moved to postpone Ordinance 2005-11 until the next scheduled public hearing date of May 3, 2005.

MOTION PASSED: Unanimous.

(11:18:20)

Ordinance 2005-12: Amending KPB 5.18.450 to Provide Parity Between Local and Out of Jurisdiction Service Providers (Chay) (Referred to Policies and Procedures Committee)

[Clerk's Note: There was a motion to enact on the floor from the April 5, 2005 meeting.]

President Superman called for public comment.

The following people spoke in favor of Ordinance 2005-12:

Bob Molloy, 110 S. Willow Street, Suite 101, Kenai, AK

Ruby Kime, Alice Avenue, Ninilchik, AK

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

(11:28:00)

MOTION: Glick moved to extend the legislative deadline by one half hour to Midnight.

MOTION PASSED: Unanimous.

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

MOTION TO POSTPONE: Chay moved to postpone Ordinance 2005-12 until May 17, 2005.

VOTE ON MOTION TO POSTPONE:

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

No: Superman

Absent: None

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

NEW BUSINESS (11:34:41)

Resolution 2005-033: Supporting Efforts to Purchase the Corr Property Near Soldotna, Alaska located along the Kenai River for Inclusion into the Kenai River Special Management Area (Sprague) (Referred to Lands Committee)

MOTION: Merkes moved to adopt Resolution 2005-033.

President Superman called for public comment.

The following person spoke in opposition to Resolution 2005-033:

Fred Sturman, PO Box 513, Soldotna, AK

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

Assembly Member Merkes spoke in opposition to Resolution 2005-033 as it would not bring in revenue as a public property.

VOTE ON MOTION TO ADOPT:

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

No: Fischer, Merkes

Absent: None

MOTION TO ADOPT PASSED: 7 Yes, 2 No, 0 Absent

PUBLIC COMMENTS AND PUBLIC PRESENTATIONS - None.

ASSEMBLY MEETING AND HEARING ANNOUNCEMENTS (11:49:03)

The next meeting of the Kenai Peninsula Borough Assembly was scheduled for May 3, 2005, at 7:00 p.m. in the Council Chambers, City Hall, Seward, Alaska.

ASSEMBLY COMMENTS (11:49:13)

As this was Borough Clerk Linda Murphy's last assembly meeting before her retirement, all the members of the assembly wished her well and thanked her for her years of excellent service to the borough.

ADJOURNMENT (11:54:02)

With no further business to come before the assembly, President Superman adjourned the meeting at 11:54 p.m.

I certify the above represents accurate minutes of the Kenai Peninsula Borough Assembly meeting of April 19, 2005.

Approved by Assembly: