Assembly meeting minutes

Kenai Peninsula Borough

Assembly Meeting Minutes

May 17, 2005 - 7:00 p.m. Regular Meeting -Soldotna, Alaska

CALL TO ORDER

A Regular Meeting of the Kenai Peninsula Borough Assembly was held on May 17, 2005, in the Borough 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 Pat Evans from the Family Church of God in Kenai.

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

Sherry Biggs, Borough Clerk

Johni Blankenship, Deputy Clerk

COMMITTEE REPORTS (7:03:00)

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

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 Long reported the Legislative Committee met and discussed its brief agenda.

MOTION: Long moved to authorize travel and related costs (less reimbursements from AML) for Pete Sprague and Betty Glick to attend the following National Association of Counties Meetings:

Western Interstate Region Conference, May 25-27, 2005 in Tacoma, Washington (Reimbursed from AML up to $1,000 each)

NACo Annual Conference, July 15-19 in Honolulu, Hawaii (Reimbursed from AML for up to $1,000 for Ms. Glick) (Mr. Sprague's cost fully reimbursed by AML).

MOTION PASSED: Unanimous.

APPROVAL OF AGENDA AND CONSENT AGENDA (7:16:52)

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: Moss moved to suspend the rules and address the following ordinances as the last items of business under Public Hearings:

Ordinance 2005-05(Sub),

Ordinances 2005-09,

Ordinance 2005-19.

MOTION PASSED: Unanimous.

MOTION: Merkes moved to suspend the rules and address Resolution 2005-044 prior to Public Hearings.

Assembly Member Sprague spoke in opposition to the motion.

VOTE ON MOTION:

Yes: Fisher, Merkes, Moss

No: Chay, Glick, Long, Martin, Sprague, Superman

Absent: None

MOTION TO SUSPEND THE RULES FAILED: 3 Yes, 6 No, 0 Absent

The following item was added to the regular agenda:

Proclamation declaring June, 2005 as Traumatic Brain Injury Awareness Month.

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

Resolution 2005-044: Supporting the Funny River Bridge Project and Authorizing the Mayor to Negotiate the Administration, Management, and Ownership of the Project with the State Department of Transportation and Public Facilities (Mayor) (Referred to Lands Committee)

Copies having been made available to the public, Borough Clerk Sherry Biggs noted by title only the resolutions, ordinances and minutes on the consent agenda.

May 3, 2005 Assembly Meeting Minutes
A Resolution Commending the Kenai River Center and the Kenai Watershed Forum as Recipients of the 2004 Coastal American Partnership Award and Commendation from President Bush for Their Cooperative Effort to Restore Silver Salmon Creek (Sprague)
Resolution 2005-042: Authorizing Award of a Contract for Construction Services for Redoubt Elementary and Soldotna High School Fire Detection and Alarm System (Mayor) (Referred to Finance Committee)
Resolution 2005-045: Authorizing the Borough to Enter into a One-Year Lease Agreement with Four One-Year Renewals with the Estate of Robert L. Plymire to Extend the Use and Occupancy of the Borough's Satellite Office in Homer (Mayor) (Referred to Lands Committee)

[Clerk's Note: The following technical amendment was made to Resolution 2005-045 final whereas to read, "the KPB Planning Commission at its regularly scheduled meeting of May 9, 2005 recommended adoption by unanimous consent."]

Ordinance 2004-19-52: Accepting and Appropriating a Grant from the Alaska Division of Homeland Security and Emergency Management in the Amount of $26,637.83 for the Kenai Peninsula Citizens Corps Programs (Mayor) (Shortened Hearing on 06/07/05) (Referred to Finance Committee)
Ordinance 2004-19-53: Accepting and Appropriating a Grant from the Alaska Division of Homeland Security and Emergency Management in the Amount of $238,568.75 for Emergency Preparedness (Mayor) (Shortened Hearing on 06/07/05) (Referred to Finance Committee)
Ordinance 2004-19-54: Correcting Ordinance 2004-19-30, Which Accepted and Appropriated a Grant from the State Department of Health and Social Services in the Amount of $927,151 for the South Peninsula Hospital Expansion Project (Mayor) (Hearing on 06/21/05) (Referred to Finance Committee)
Ordinance 2004-19-55: Appropriating $322,551 from the General Fund to Provide Supplemental Funding from Local Sources for School Purposes During Fiscal Year 2004-2005 (Mayor) (Hearing on 06/21/05) (Referred to Finance Committee)
Ordinance 2005-23: Authorizing the Long-Term Lease of Beach Access Tract, Moose Point Subdivision to ConocoPhillips Company at Fair Market Value (Mayor) (Hearing on 06/21/05) (Referred to Lands Committee)
Ordinance 2005-24: Enacting KPB 16.16.090 Requiring Voter Approval for Certain Major Capital Improvement Projects in the North Peninsula Recreation Service Area (Mayor) (Hearing on 06/21/05) (Referred to Policies and Procedures Committee)
Ordinance 2005-25: Certifying 6,500 Feet of Moose Range Drive in the Central Region and 4,440 Feet of Fairway Avenue in the West Region of the Road Service Area for Road Maintenance (Mayor) (Hearing on 06/21/05) (Referred to Lands Committee)
Approving the Application for Transfer Relocation of Liquor License filed by Nancy M. Lupton dba Magpye's Pizzeria in Sterling, Alaska (Referred to Finance Committee)
Approving the Application for Restaurant Designation filed by Nancy M. Lupton dba Magpye's Pizzeria in Sterling, Alaska (Referred to Finance Committee)

President Superman called for public comment on consent items agenda.

The following people addressed the Assembly in support of Ordinance 2005-25:

Ted Shaw, PO Box 425, Kasilof, AK

Joyce Shaw, PO Box 425, Kasilof, AK

Mike Mans, PO Box 754, Kasilof, AK

Michelle Gormanus, 60060 Moose Range Drive, Kasilof, AK

Charlotte Nicholette, PO Box 930, Kasilof, AK

Laurie Nelson, Fairway, Kasilof, AK

Aaron Kotzen, PO Box 808, Kasilof, AK

Mike Bookout, 38353 Holworth, Kasilof, AK

Jim Jeeter, PO Box 1094, Kasilof, AK

Robert, Watkins, 214 Susieanna, Kenai, AK

Mark Deigel, PO Box 1233, Kasilof, AK

Bud Smalley, PO Box 332, Kasilof, AK

Kathy Walsh, 53030 Aurora Drive, Kasilof, AK

Scott Summer, 39805 Moose Range Drive, Kasilof, AK

Darrel Byerly, 39345 Moose Range Drive, Kasilof, AK

Bruce Cox, PO Box 654, Kasilof, AK

Richard Warrington, 313 Cindy Circle, Kenai, AK

The following people spoke in opposition to O2005-04:

James Price, 49185 Island Lake Road, Nikiski, AK

Vicki Pate, PO Box 7447, Nikiski,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 (8:01:07)

Mayor Bagley proclaimed June 3-4, 2005 as Relay for Life on the Kenai Peninsula.

Mayor Bagley proclaimed June, 2005 as Traumatic Brain Awareness Month.

Assembly Member Sprague presented a commending resolution to the Kenai River Center and the Kenai Watershed Forum as Recipients of the 2004 Coastal American Partnership Award and Commendation from President Bush for their cooperative effort to restore Silver Salmon Creek.

(8:13:50)

PRESENTATIONS WITH PRIOR NOTICE

Mr. Ron Duprez, gave a presentation on the "Health Survey Study" findings, as requested by the Central Kenai Peninsula Hospital Service Area Board.

Scott Holt, Finance Director for the Kenai Peninsula Borough, presented the FY06 Budget.

PUBLIC COMMENTS ON ITEMS NOT APPEARING ON THE AGENDA (8:35:37)

Polly Roger, Fairway Drive, Kasilof, AK addressed the Assembly regarding Ordinance 2005-25.

Charles Short, 46941 Kenai Spur Highway, Kenai, AK, addressed the Assembly regarding development of Moose Point and Gray Cliff Subdivisions.

Lloyd Schade, 35250 Schade Drive, Homer, AK addressed the Assembly regarding the Kachemak Emergency Service Area and the recent fires in Homer.

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

REPORTS OF COMMISSIONS AND COUNCILS - None. (8:58:00)

MAYOR'S REPORT (8:58:00)

Agreement and Contracts

Approval of bid award to Northwest Carpet Company LLC for McNeil Canyon School Flooring Replacement 2005

Approval of bid award to Floor-Ever, Inc. for Nikiski Middle/High School Flooring Replacement 2005

Approval of bid award to Northwest Linings & Geotextile Products, Inc. for Reinforced Polyethylene Material at Central Peninsula Landfill Services

Approval of sole source contract with West Coast Paper for purchase of Gym Floor Refinishing Products

Approval for waiver of formal bidding procedures for Trane Unit Ventilators at Kenai High School

Other

Kenai Borough Employees Association Scholarship Recipients

Letter from John D. Coston, Chair, Agrium Employee Support Committee regarding letter of support from Mayor Bagley

Kenai Peninsula Small Business Development Center - Second Quarter Report

Revenue-Expenditure Report - April 2005

Budget Revisions - April 2005

ITEMS NOT COMPLETED FROM PRIOR AGENDA - None

PUBLIC HEARINGS ON ORDINANCES

(8:58:45)

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) (Referred to Finance Committee)

MOTION: Moss moved to enact Ordinance 2004-19-50.

Assembly Member Moss stated the grant required a match from the service area and indicated the service area intended to use the funds to hold a fire safety rodeo and implement a smoke detector and fire alarm program.

President Superman called for public comment with none being offered.

MOTION TO AMEND: Moss moved to amend Ordinance 2004-19-50 as follows:

Final Whereas to read, "at its regularly scheduled meeting held April 12, 2005, the BCFSA Board recommended enactment by unanimous consent;"

MOTION TO AMEND PASSED: Unanimous.

MOTION TO ENACT AS AMENDED PASSED: Unanimous. (9:02:09)

Ordinance 2004-19-51: Appropriating Supplemental Funding in the Amount of $65,000 to Cover Costs Associated with Board of Equalization Hearings (Mayor) (Referred to Finance Committee)

MOTION: Moss moved to enact Ordinance 2004-19-51.

Assembly Member Moss indicated the purpose of the ordinance was to appropriate funds for the upcoming Tesoro Board of Equalization hearing.

President Superman called for public comment with none being offered.

MOTION TO ENACT PASSED: Unanimous.

(9:03:21)

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 May 3, 2005 meeting.]

Assembly Member Chay stated he had introduced the ordinance on behalf of the Peninsula Bar Association and that it had since lost support from that association. He stated that he would be voting against the ordinance and encouraged the rest of the Assembly to do the same.

President Superman called for public comment with none being offered.

VOTE ON MOTION TO ENACT:

Yes: None

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

Absent: None

MOTION TO ENACT FAILED: 0 Yes, 9 No, 0 Absent

(9:04:50)

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

[Clerk's Note: There was a motion to enact on the floor from the May 3, 2005 meeting.]

Assembly Member Moss stated the sponsor was no longer in support of the ordinance.

President Superman called for public comment with none being offered.

VOTE ON MOTION TO ENACT:

Yes: None

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

Absent: None

MOTION TO ENACT FAILED: 0 Yes, 9 No, 0 Absent

(9:06:46)

Ordinance 2005-20: Repealing KPB 2.56.005 and Enacting KPB 2.56.006, Adopting the 2005 Kenai Peninsula Borough Comprehensive Plan (Mayor) (Referred to Lands Committee)

[Clerk's Note: There was a motion to enact on the floor from the May 3 2005 meeting.]

President Superman called for public comment with none being offered.

Assembly Member Merkes stated the Lands Committee discussed the ordinance and there were several amendments requested by the Planning Commission.

MOTION TO POSTPONE: Merkes moved to postpone Ordinance 2005-20 until the June 21, 2005 meeting.

VOTE ON MOTION TO POSTPONE PASSED: Unanimous

(9:08:46)

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) (Referred to Lands Committee)

MOTION: Merkes moved to enact Ordinance 2005-21.

Assembly Member Merkes stated the Lands Committee discussed the ordinance. She noted the land was currently used by several groups and this action would allow for the disposition of the land through a memorandum of agreement.

President Superman called for public comment with none being offered.

MOTION: Merkes moved to amend Ordinance 2005-21 as follow:

Final Whereas to read, "the KPB Planning Commission at its regularly scheduled meeting of April [11]25, 2005, recommended enactment by unanimous consent."

VOTE ON MOTION TO AMEND PASSED: Unanimous.

MOTION TO ENACT AS AMENDED PASSED: Unanimous.

(9:11:50)

Ordinance 2005-22: Amending KPB 4.130.140(A) and 4.130.150(A) Regarding the Scheduling of Elections Concerning Initiative and Referendum Petitions (Superman at the request of the Borough Clerk) (Referred to Policies and Procedures Committee)

MOTION: Chay moved to enact Ordinance 2005-22.

Assembly Member Chay stated the Policies and Procedures Committee discussed the ordinance and indicated the purpose of the ordinance was to amend borough code in order to bring it in alignment with state election practices.

President Superman called for public comment with none being offered.

MOTION TO ENACT PASSED: Unanimous.

(9:13:28)

Ordinance 2005-05 (Glick) Substitute: 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) (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 support of Ordinance 2005-05(Sub):

Billy Hardy, PO Box 3391, Soldotna, AK

Melvin Bailey, O'Grady Court, Sterling, AK

Earl Miller, PO Box 746, Soldotna, AK

Steve Anderson, 399 Lovers Lane, Soldotna, AK

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

Jerry Sholand, 58856 East End Road, Homer, AK

Lou Detwhiler, 58856 East End Road, Homer, AK

Irene Fandel, 702 Lawton Drive, Kenai, AK

Herman Fandel, 702 Lawton Drive, Kenai, AK

Monty Roberts, 267 Rockwell Avenue, Soldotna, AK

John Faulkner, 4621 West Hill Road, Homer, AK

Leah Handley, PO Box 900, Homer, AK

Paul Carter, PO Box 2135, Seward, AK

David Carey, 119 Shady Lane, Soldotna, AK

Rod Berg, 266 Redwood Court, Soldotna, AK

Joe Conners, PO Box 1085, Sterling, AK

John Joseph, PO Box 444, Sterling AK

Ruby Kime, 64955 Alice Avenue, Ninilchik, AK

Jerry Strieby, PO Box 1396, Soldotna, AK

Don Johnson, PO Box 876, Soldotna, AK

Vicki Pate, PO Box 7447, Nikiski, AK

Phillip Sweat, PO Box 1195, Soldotna, AK

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

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

MOTION PASSED: Unanimous.

MOTION TO AMEND: Sprague moved to amend Ordinance 2005-05(Sub) as follows;

Section 1., 5.19.100(A) to read, "The borough levies a tax on all accommodations rent payable to a seller and not exempt from taxation under subsection 5.19.200 in the amount of up to 4 percent of the accommodations room rent. The guest shall pay the tax to the seller at the time the rent is paid. The seller shall collect the tax when the seller collects the rent."

Section 1., 5.19.400(A) to read, "The tax to be added to t he accommodations price shall be up to four percent (4%) of the accommodations price rounded off to the nearest cent by eliminating any fraction of one-half cent or less and by increasing any fraction over one-half cent to the next highest cent. Each seller shall be furnished the schedule of tax payable on each taxable amount from one cent to $100,000."

Section 2. to read, "That a ballot proposition shall be placed before borough voters at the next regular election to read as follows:

Proposition No.____

Shall Ordinance 2005-05, providing for the imposition of up to [an] 4 percent transient accommodations tax, be ratified?"

Assembly Member Martin spoke in support of the amendment.

Assembly Member Merkes spoke in opposition to the amendment.

VOTE ON MOTION TO AMEND:

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

No: Fischer, Merkes

Absent: None

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

Assembly Members Long, Martin and Chay spoke in support of the ordinance as amended.

MOTION TO AMEND: Glick moved to amend Ordinance 2005-05(Sub) as follows;

Insert a new Section 2 and renumber Sections 3 and 4.

Section 2 to read, "5.20.190 Use of Transient Occupancy Taxes.

The room tax fund is established to account for all revenues from the transient occupancy tax to be used for tourism marketing.

A On the first business day of July following the close of the preceding fiscal year, hotel-motel room taxes received for the preceding fiscal year will be transferred to the room tax fund. Subsequent closing and audit adjustments to hotel-motel room tax revenues of the preceding fiscal year will be made to the room tax fund as necessary.

B. Transfers to the room tax fund will be made as follows:

1. During the fiscal year ending June 30, 2006, an amount equivalent to 12.5 percent of the prior year hotel-motel room tax revenues;

2. During the fiscal year ending June 30, 2007, an amount equivalent to 40 percent of the prior year hotel-motel room tax revenues;

3. During the fiscal year ending June 30, 2007, and on each June 30^th thereafter, an amount equivalent to 50 percent of the preceding year's hotel-motel room tax revenue.

C. The balance of the revenues generated under this program would be available to support general government operations.

MOTION TO AMEND: (Secondary Amendment) Sprague moved to amend the amendment as follows:

Section 2., 5.20.190(B) to read, "An amount equivalent to at least 25 percent of the prior year hotel-motel room tax revenues shall be transferred to the room tax fund."

Assembly Member Long spoke in favor of the secondary amendment.

MOTION TO POSTPONE: Martin moved to postpone Ordinance 2005-05(Sub) until the June 7, 2005 meeting.

Assembly Member Sprague spoke in opposition to the postpone.

VOTE ON MOTION TO POSTPONE:

Yes: Martin, Merkes

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

Absent: None

MOTION TO POSTPONE FAILED: 2 Yes, 7 No, 0 Absent

VOTE ON SECONDARY MOTION TO AMEND:

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

No: Fischer, Merkes, Superman

Absent: None

SECONDARY AMENDMENT PASSED: 6 Yes, 3 No, 0 Absent

MOTION TO AMEND: (Secondary Amendment) Long moved to amend Section 2 (5.20.190) as follows:

Section 2 to read, "5.20.185 Use of Transient Occupancy Taxes.

The room tax fund is established to account for [ALL] revenues from the transient occupancy tax to be used for tourism marketing.

Assembly Member Martin spoke in opposition to the amendment.

VOTE ON SECONDARY MOTION TO AMEND:

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

No: Martin, Superman

Absent: None

SECONDARY AMENDMENT PASSED: 7 Yes, 2 No, 0 Absent

Assembly Member Fischer spoke in opposition to Ordinance 2005-05(Sub).

Assembly Member Superman passed the gavel to Vice President Long. Assembly Member Superman spoke in opposition to Ordinance 2005-05(Sub). Vice President Long returned the gavel to President Superman.

MOTION TO AMEND: (Secondary Amendment) Long moved to amend the amendment as follows:

Section 5.20.190(A) to read, "On the first business day of July following the close of the preceding fiscal year, [hotel-motel room] transient occupancy taxes received for the preceding fiscal year will be transferred to the room tax fund. Subsequent closing and audit adjustments to [hotel-motel room] transient occupancy room tax revenues of the preceding fiscal year will be made to the room tax fund as necessary.

Section 2., 5.20.190(B) to read, "An amount equivalent to at least 25 percent of the prior year [hotel-motel room] transient room tax revenues shall be transferred to the room tax fund."

SECONDARY AMENDMENT PASSED: Unanimous.

Assembly Member Martin spoke in opposition to the amendment.

VOTE ON MOTION TO AMEND:

Yes: Chay, Glick, Long, Moss, Sprague

No: Fischer, Martin, Merkes, Superman

Absent: None

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

VOTE ON MOTION TO ENACT AS AMENDED:

Yes: Chay, Glick, Long, Moss, Sprague

No: Fischer, Martin, Merkes, Superman

Absent: None

MOTION TO ENACT AS AMENDED PASSED: 5 Yes, 4 No, 0 Absent

Assembly Member Fischer gave notice of reconsideration on Ordinance 2005-05(Sub).

ASSEMBLY MEETING AND HEARING ANNOUNCEMENTS (11:58:45)

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

ADJOURNMENT (11:59:00)

Having reached the legislative deadline, President Superman adjourned the meeting at 11:59 p.m.

I certify the above represents accurate minutes of the Kenai Peninsula Borough Assembly meeting of May 17, 2005.

Sherry Biggs, Borough Clerk

Approved by Assembly: