CALL TO ORDER

A Regular Meeting of the Kenai Peninsula Borough Assembly was held on June 7, 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 Phil Edgerly, Reflection Lake Chapel in Kasilof.

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 (7:02:00)

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 Long reported the Legislative Committee met and discussed its brief agenda. He stated Representatives Chenault and Olson summarized several legislative issues of interest to the borough. He noted the Committee also discussed the Maritime Transportation Security Act. He reported on Assembly Members Sprague and Glick's trip to the Western Interstate Region Conference in Tacoma, Washington.

APPROVAL OF AGENDA AND CONSENT AGENDA (7:22:38)

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: Martin moved to suspend the rules by moving the following items to the first items of business:

Ordinance 2004-19-52;

Ordinance 2004-19-53; and

Petition to Vacate a Portion of Greer Road.

Assembly Member Moss spoke in opposition to the motion.

VOTE ON MOTION:

Yes: Fischer, Martin, Sprague, Chay

No: Glick, Long, Merkes, Moss, Superman

Absent: None

MOTION FAILED: 4 Yes, 5 No, 0 Absent

MOTION: Sprague moved to remove Resolution 2005-050 from the consent agenda.

VOTE ON MOTION:

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

No: Martin

Absent: None

MOTION PASSED: 8 Yes, 1 No, 0 Absent

MOTION: Sprague moved to suspend the rules by moving Item P. 4. a., Petition to vacate a Portion of Greer Road, to the beginning of the agenda.

VOTE ON MOTION:

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

No: Superman

Absent: None

MOTION PASSED: 8 Yes, 1 No, 0 Absent

MOTION: Moss moved to suspend the rules by moving the following items to the end of the agenda:

Ordinance 2005-09;

Ordinance 2005-19; and

Resolution 2005-043.

MOTION: (Secondary) Sprague moved to amend the motion by adding Resolution 2005-044.

Assembly Member Merkes spoke in opposition to the secondary amendment.

VOTE ON SECONDARY MOTION:

Yes: Chay, Long, Martin, Sprague

No: Glick, Fischer, Merkes, Moss, Superman

Absent: None

SECONDARY MOTION FAILED: 4 Yes, 5 No, 0 Absent

Assembly Members Sprague, Martin and Long spoke in opposition to the main motion.

VOTE ON MAIN MOTION:

Yes: Merkes, Moss

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

Absent: None

MAIN MOTION FAILED: 2 Yes, 7 No, 0 Absent

MOTION: Moss moved to add Ordinance 2004-19-57 to the consent agenda.

VOTE ON MOTION:

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

No: Fischer, Glick

Absent: None

MOTION PASSED: 7 Yes, 2 No, 0 Absent

The following item was added to the consent agenda:

• Ordinance 2004-19-57: Appropriating an Additional $18,534 Toward the Road Service Area Community College Drive Capital Improvement Project to Cover Utility Work on the Project (Mayor) (Shortened Hearing on 06/21/05) (Referred to Finance Committee)

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

• Resolution 2005-050: Reclassifying Certain Borough Land Located in the Russian Gap Area of Cooper Landing, Section 25, T5N, R3W, S. M., Alaska, as Recreational (Mayor) (Referred to Lands Committee)
• Resolution 2005-051: Authorizing the Assessor to Assess Low-Income Housing Tax Credit (LIHTC) Project Based on Restricted Rents (Mayor) (Referred to Finance 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 17, 2005 Regular Meeting Minutes
• A Resolution Commending Chief Daniel Gregory upon his Retirement from the Nikiski Fire Department (Superman)
• Resolution 2005-046: Establishing the Necessity for the Pollard Loop Subdivision Utility Special Assessment District (USAD) for the Construction of a Natural Gas Main Line (Mayor) (Referred to Lands Committee)
• Resolution 2005-047: Establishing the Necessity for the Scooter's Landing Subdivision Utility Special Assessment District (USAD) for the Construction of a Natural Gas Main Line (Mayor) (Referred to Lands Committee)
• Resolution 2005-048: Authorizing Award of Contract for Kenai Central High School Roof Replacement, Sections "C" and "D" (Mayor) (Referred to Finance Committee)
• Resolution 2005-049: Approving the Construction of Kasilof River Road Located in the Road Service Area West Region, Unit 3, Pursuant to KPB 16.41.190 (Mayor) (Referred to Lands Committee)
• Resolution 2005-052: Authorizing Transfer of Funds from the Completed Homer High School Exterior Refurbishment Project to the Kenai High School Roof Replacement Sections "C" and "D" Project (Mayor) (Referred to Finance Committee)
• Resolution 2005-053: Supporting and Recognizing the Significance of Coastal Planning and Supporting the Effort of the Kenai Peninsula Borough Coastal District to Develop its Final Plan Amendment to its Coastal Zone Management Plan (Mayor) (Referred to Lands Committee)
• Resolution 2005-054: Authorizing Award of a Grant in the Amount of $40,000 to Cook Inlet Council on Alcohol and Drug Abuse (Mayor at request of the CKPHSA Board) (Referred to Finance Committee)
• Resolution 2005-055: Approving the Construction of LaCross Way Located in the Road Service Area West Region, Unit 2, Pursuant to KPB 16.41.190 (Mayor) (Referred to Lands Committee)
• Ordinance 2004-19-56: Accepting and Appropriating a Grant from the Alaska Division of Homeland Security and Emergency Management in the Amount of $50,000 for Security Equipment (Mayor) (Shortened Hearing on 06/21/05) (Referred to Finance Committee)
• Ordinance 2004-19-57: Appropriating an Additional $18,534 Toward the Road Service Area Community College Drive Capital Improvement Project to Cover Utility Work on the Project (Mayor) (Shortened Hearing on 06/21/05) (Referred to Finance Committee)
• Ordinance 2005-19-01: Accepting $2,000,000 from the State of Alaska for Keystone Drive Road Improvements and Appropriating the Grant to a Road Service Area Capital Project Account (Mayor) (Hearing on 07/12/05) (Referred to Finance Committee)
• Ordinance 2005-19-02: Accepting and Appropriating a Grant from the U.S. Federal Transit Administration in the Amount of $1,456,311 and Appropriating the Grant and Matching Funds of $298,281 for School Buses (Mayor ) (Hearing on 07/12/05) (Referred to Finance Committee)
• Ordinance 2005-19-03: Accepting and Appropriating a Grant from the Alaska Housing Finance Corporation in the Amount of $235,000 for Teacher Housing in Tyonek (Mayor) (Shortened Hearing on 06/21/05) (Referred to Finance Committee)

[Clerk's Note: A technical amendment was made to Ordinance 2005-19-03 to change the public hearing date to 06/21/05.]

• Ordinance 2005-19-04: Accepting $93,084 from the U.S. Department of Homeland Security for Central Emergency Services for Fire Prevention and Safety and Appropriating the Grant and $10,342 in Matching Funds to a Capital Project Account (Mayor) (Hearing on 07/12/05) (Referred to Finance Committee)
• Ordinance 2005-19-05: Accepting and Appropriating a Federal Grant in the Amount of $992,000 for Housing Needs During the 2006 Arctic Winter Games (Mayor) (Hearing on 07/12/05) (Referred to Finance Committee)
• Ordinance 2005-19-06: Appropriating $174,691.89 to the Special Assessment Fund for Pollard Loop Natural Gas Line Utility Special Assessment District (USAD) (Mayor) (Hearing on 07/12/05) (Referred to Finance Committee)
• Ordinance 2005-19-07: Appropriating $111,118.80 to the Special Assessment Fund for Scooter's Landing Natural Gas Line Utility Special Assessment District (USAD) (Mayor) (Hearing on 07/12/05) (Referred to Finance Committee)
• Ordinance 2005-26: Authorizing a Land Exchange with the City of Soldotna of a 10-Acre Borough Parcel on West Redoubt for a 17-Acre City Parcel on the Sterling Highway to Support a City Cemetery (Mayor) (Hearing on 07/12/05) (Referred to Lands Committee)
• Ordinance 2005-19-08: Appropriating an Additional $18,534 Toward the Road Service Area Community College Drive Capital Improvement Project to Cover Utility Work on the Project (Mayor) (Shortened Hearing on 06/21/05) (Referred to Finance Committee)
• Petition to Vacate Storm Street and the portion of Bear Avenue adjacent to Tract 3 and associated utility easements dedicated by Diamond Acres Subdivision (Plat HM 76-24) And Vacate Storm Street, Orca Street, Donnan Street, Bear Avenue, El Camino Avenue, Hollywood Avenue and associated utility easements dedicated by Donnan's Divide (Plat HM 79-72); within Section 24, Township 5 South, Range 12 West, Seward Meridian, Alaska; within the Kenai Peninsula Borough; KPB File 2005-064; Petitioners: Larry E. and Colleen A. Riley; Location: Homer Area (Referred to Lands Committee)

President Superman called for public comment on consent items agenda with none being offered.

AGENDAS APPROVED AS AMENDED: Unanimous.

COMMENDING RESOLUTIONS AND PROCLAMATIONS (7:54:55)

Mayor Bagley declared the week of June 6, 2005, as Hunger Awareness Week.

Assembly President Superman presented a commending resolution to Chief Daniel Gregory upon his retirement from the Nikiski Fire Department.

PRESENTATIONS WITH PRIOR NOTICE - None.

PUBLIC COMMENTS ON ITEMS NOT APPEARING ON THE AGENDA - None.

REPORTS OF COMMISSIONS AND COUNCILS - None.

MAYOR'S REPORT (8:01:08)

Spruce Bark Beetle Mitigation Program:

• Approval of contract with Steve's Tree Service for Tustumena Lake Road #4 ROW
• Approval of contract with Norris & Sons for application of Calcium Chloride to roads in North Region
• Approval of contract with Metco, Inc. for application of Calcium Chloride to roads in East Region
• Approval of contract with 2 Bears Trucking for application of Calcium Chloride to roads in South and Central Regions
• Approval of contract with Floor-Ever, Inc. for Flooring Replacement at Nikiski Middle/High School
• Approval of bid award to Alert Alarm of Alaska for Closed Circuit Television Surveillance Systems at Central and Homer Landfills
• Approval of bid award to Ramsey Carpet Service, Inc. for Flooring Replacement at Moose Pass Elementary School
• Approval of bid award to Floor-Ever, Inc. for Flooring Replacement at Skyview High School

Letter to Governor Frank Murkowski regarding purchase of Corr Homestead

(8:04:00)

NEW BUSINESS

Petition to Vacate the Portion of Greer Road Adjacent to Lot 6, Block 1, within Section 28, Dedicated by Spruce Wood Subdivision 1976 Addition (Plat 77-8) and a Portion Adjacent to Lots 2 and 11, within Section 27, dedicated by Triple Crown Estates unit 1 (Plat HM 2003-21); AND the 33-foot Section Line Easement in the same locations, all being within Township 5 South, Range 12 West, Seward Meridian, Alaska; KPB File No. 2005-072 (Referred to Lands Committee)

MOTION: Merkes moved to veto the action of the Planning Commission.

Assembly Members Sprague, Moss and Martin spoke in favor of the motion to veto.

MOTION TO VETO THE ACTION OF

THE PLANNING COMMISSION PASSED: Unanimous.

ITEMS NOT COMPLETED FROM PRIOR AGENDA

(8:08:00)

Ordinance 2005-09: Amending the Borough Code to Provide for Increased Revenue Enhancement Measures Including Increasing the Borough Sales Tax Rate to 3 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) (Referred to Finance Committee)

[Clerk's Note: There was a motion to enact on the floor from the April 19, 2005 meeting.]

Assembly Member Moss stated Ordinance 2005-09 was introduced by the Mayor in order to enhance revenues of the borough. He also stated an amendment was forthcoming.

President Superman called for public comment.

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

Rod Berg, 266 Redwood Court, Soldotna, AK

John Joseph, PO Box 444, Sterling, AK

Joe Conners, PO Box 1085, Sterling, AK

Don Johnson, PO Box 876, Soldotna, AK

Bob Molloy, 110 South Willow, Suite101 Kenai, AK

Val Earlie, PO Box 753, Soldotna, AK

Bill Sweat, PO Box 1195, Sterling, AK

Earl Miller, PO Box 756, Soldotna, AK

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

MOTION TO AMEND: Moss moved to amend Ordinance 2005-09 as follows:

Title to read, "An Ordinance Amending the Borough Code to Provide for Increased Revenue Enhancement Measures Including Increasing the Borough Sales Tax Rate to 3 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] Appropriation of a Portion of Fund Balance from the Land Trust Fund to the General Fund"

9^th Whereas to read, "[PLACING A CAP ON THE AMOUNT OF FUNDS RETAINED IN THE LAND TRUST FUND] appropriation of a portion of fund balance from the land trust fund to the general fund will enable funds derived from the ongoing sale of property to finance general government functions, which was one of the original intents of the land grant program through which the borough acquired the majority of its land holdings; and"

Renumber Sections 5, 6 and 7 to Sections 4, 5 and 6.

Section [5]4, 5.20.080(A) to read, "The land trust fund is established to receive, disburse, and account for all moneys accruing to the borough in lieu of lands or from the use or sale of lands [TO A MAXIMUM FUND BALANCE OF 42.5 MILLION. IF THE FUND BALANCE REACHES $2.5 MILLION, ADDITIONAL RECEIPTS WHICH WOULD OTHERWISE BE DEPOSITED INTO THE LAND TRUST FUND SHALL INSTEAD BE DEPOSITED INTO THE GENERAL FUND]. Disbursement from said fund shall be for the acquisition of property and expenses related to the borough land management operations, or such other purposes as the assembly may authorize."

New Section 4, 5.20.080(B) to read, "Fifty percent of any amount in excess of the highest previous fund balance may be available for appropriation to the general fund. Fund balances prior to 2005 shall not be considered when determining the highest fund balance. For purpose of computing revenues that may be available for appropriation to the general fund, on March 1 of each year the balance of the budget not yet spent for land management administration for that fiscal year will be subtracted from the land management administration for that fiscal year will be subtracted from the land trust fund balance. Also, revenues expected to be received after March 1 and before July 1 of that year may be added to the land trust fund balance."

New Section 5 to read, "This is a non-code provision. For fiscal year 2006 only, the provisions in KPB 5.20.080(B) shall not apply. Instead, fund balance in the land trust fund in excess of $2,500,000 shall be made available for appropriation to the general fund."

Section [7]6 to read, "[THAT SECTIONS 2, AND 5 AND 6 OF THIS ORDINANCE SHALL TAKE EFFECT JULY 1, 2005, AND THAT SECTIONS 1, 3, AND 4 OF THIS ORDINANCE SHALL TAKE EFFECT JANUARY 1, 2006.] That Section 1 of this ordinance shall take effect October 1, 2005 and Sections 4 and 5 of this ordinance shall take effect July 1, 2006. Sections 2 and 3 of this ordinance shall take effect January 1, 2006."

Assembly Members Sprague and Martin spoke in support of the amendment.

VOTE ON MOTION TO AMEND:

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

No: Fischer, Glick

Absent: None

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

MOTION TO AMEND: Sprague moved to amend Ordinance 2005-09 as follows:

Title to read, "An Ordinance Amending the Borough Code to Provide for Increased Revenue Enhancement Measures Including Increasing the Borough Sales Tax Rate to 3 Percent and 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]"

Delete Section 4 in its entirety;

[THAT KPB 5.20.080 IS HEREBY AMENDED AS FOLLOWS: 5.20.080 LAND TRUST FUND. A) THE LAND TRUST FUND IS ESTABLISHED TO RECEIVE, DISBURSE, AND ACCOUNT FOR ALL MONEYS ACCRUING TO THE BOROUGH IN LIEU OF LANDS OR FROM THE USE OR SALE OF LANDS TO A MAXIMUM FUND BALANCE OF 42.5 MILLION. IF THE FUND BALANCE REACHES $2.5 MILLION, ADDITIONAL RECEIPTS WHICH WOULD OTHERWISE BE DEPOSITED INTO THE LAND TRUST FUND SHALL INSTEAD BE DEPOSITED INTO THE GENERAL FUND. DISBURSEMENT FROM SAID FUND SHALL BE FOR THE ACQUISITION OF PROPERTY AND EXPENSES RELATED TO THE BOROUGH LAND MANAGEMENT OPERATIONS, OR SUCH OTHER PURPOSES AS THE ASSEMBLY MAY AUTHORIZE.

(B) FIFTY PERCENT OF ANY AMOUNT IN EXCESS OF THE HIGHEST PREVIOUS FUND BALANCE MAY BE AVAILABLE FOR APPROPRIATION TO THE GENERAL FUND. FUND BALANCES PRIOR TO 2005 SHALL NOT BE CONSIDERED WHEN DETERMINING THE HIGHEST FUND BALANCE. FOR PURPOSE OF COMPUTING REVENUES THAT MAY BE AVAILABLE FOR APPROPRIATION TO THE GENERAL FUND, ON MARCH 1 OF EACH YEAR THE BALANCE OF THE BUDGET NOT YET SPENT FOR LAND MANAGEMENT ADMINISTRATION FOR THAT FISCAL YEAR WILL BE SUBTRACTED FROM THE LAND MANAGEMENT ADMINISTRATION FOR THAT FISCAL YEAR WILL BE SUBTRACTED FROM THE LAND TRUST FUND BALANCE. ALSO, REVENUES EXPECTED TO BE RECEIVED AFTER MARCH 1 AND BEFORE JULY 1 OF THAT YEAR MAY BE ADDED TO THE LAND TRUST FUND BALANCE.]

Delete Section 5 in its entirety;

[THIS IS A NON-CODE PROVISION. FOR FISCAL YEAR 2006 ONLY, THE PROVISIONS IN KPB 5.20.080(B) SHALL NOT APPLY. INSTEAD, FUND BALANCE IN THE LAND TRUST FUND IN EXCESS OF $2,500,000 SHALL BE MADE AVAILABLE FOR APPROPRIATION TO THE GENERAL FUND.]

Renumber the remaining sections accordingly; and

Section 4 to read, "That Section 1 of this ordinance shall take effect October 1, 2005. Sections 2 and 3 of this ordinance shall take effect January 1, 2006. [THAT SECTION 1 OF THIS ORDINANCE SHALL TAKE EFFECT OCTOBER 1, 2005 AND SECTIONS 4 AND 5 OF THIS ORDINANCE SHALL TAKE EFFECT JULY 1, 2006. SECTIONS 2 AND 3 OF THIS ORDINANCE SHALL TAKE EFFECT JANUARY 1, 2006.]"

Assembly Members Merkes, Long and Martin spoke in opposition to the amendment.

Assembly Members Sprague and Chay spoke in favor of the amendment.

VOTE ON MOTION TO AMEND:

Yes: Chay, Glick, Sprague

No: Fischer, Long, Martin, Merkes, Moss, Superman

Absent: None

MOTION TO AMEND FAILED: 3 Yes, 6 No, 0 Absent

MOTION TO AMEND: Merkes moved to amend Ordinance 2005-09 as follows:

Delete Section 2 (E) and Section 3 (Q) entirely

[SECTION 2 (E) RECREATIONAL SALES SHALL BE TREATED ON A PER PERSON PER DAY BASIS AND THEREFORE THE MAXIMUM TAX COMPUTATION SHALL BE CALCULATED ON A PER PERSON PER DAY BASIS. FOR PURPOSES OF THIS SUBSECTION, THE TERM "PERSON" MEANS AN INDIVIDUAL HUMAN BEING.]

[SECTION 3 (Q) "RECREATIONAL SALES" MEANS SALES WHERE THE SELLER PROVIDES RECREATIONAL SERVICES AND RENTALS, EXCEPT AUTOMOBILE RENTALS, TO THE BUYER, EITHER SEPARATELY OR IN A COMBINATION, AT AN AGGREGATE PRICE, INCLUDING, BUT NOT LIMITED TO GUIDING, CHARTERS, SIGHTSEEING TOURS, OUTFITTING OR EQUIPMENT RENTALS, AND TEMPORARY LODGING INCLUDED WITH SUCH SALES.]

Title to read, "An Ordinance Amending the Borough Code to Provide for Increased Revenue Enhancement Measures Including Increasing the Borough Sales Tax Rate to 3 Percent [AMENDING KPB 5.18 TO PROVIDE THAT TAXES ON RECREATIONAL PACKAGE SALES SHALL BE CALCULATED ON A PER-PERSON PER-DAY BASIS], Appropriation of a Portion of Fund Balance from the Land Trust Fund to the General Fund"

Assembly Member Chay spoke in favor to the amendment.

Assembly Members Moss and Martin spoke in opposition to the amendment.

VOTE ON MOTION TO AMEND:

Yes: Chay, Fischer, Merkes

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

Absent: None

MOTION TO AMEND FAILED: 3 Yes, 6 No, 0 Absent

VOTE ON MOTION TO ENACT AS AMENDED:

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

No: Fischer, Glick, Merkes

Absent: None

MOTION TO ENACT AS AMENDED PASSED: 6 Yes, 3 No, 0 Absent

(9:02:00)

Ordinance 2005-19: Appropriating Funds for Fiscal Year 2005-2006 (Mayor) (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 he had several amendments on behalf of the administration.

President Superman called for public comment.

The following people spoke in support of Ordinance 2005-19:

Leon Marcinkowski, PO Box 7428, Nikiski, AK (Kenai Wild)

Rob Ernst, Integrity Seafood Inspection Service, Nikiski, AK (Kenai Wild)

Jay Hakkinen, PO Box 701, Kasilof, AK (Kenai Wild)

Julie Marcinkowski, PO Box 7428, Nikiski, AK (Kenai Wild)

Dr. Christi Suthers, Soldotna, AK (CARTS)

Claire King, PO Box 691, Sterling, AK (CARTS)

John Faulkner, 4621 West Hill Road, Homer, AK (Kenai Wild)

Sylvia Beaudoin, PO Box 75, Kasilof, AK (Kenai Wild)

The following people spoke in opposition to Ordinance 2005-19:

Dan Hammond, PO Box 7100, Nikiski, AK (spoke in opposition to increasing the mill rate in the Nikiski Fire Service Area to 3.0)

Mae M. Leighton, PO Box 8167, Nikiski, AK (spoke in opposition to increasing the Nikiski Fire Service Area mill rate)

Malcolm McBride, 1111 5th Avenue, Kenai, AK (spoke in opposition to the proposed KPB Maintenance Department personnel cuts)

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

(10:25:00)

MOTION TO AMEND: Moss moved to amend the proposed FY06 budget as recommended by the administration:

FY06 increase to PERS of 5% to be paid by State of Alaska, HB46 Section 59, thereby justifying the following reductions:

Fund	Reduce By
100	$296,461
206	$72,756
209	$2,398
211	$85,794
225	$15,446
236	$18,501
241	$120,467
250	$11,939
251	$10,427
259	$799
280	$2,100
290	$43,271
700	$13,517

Page 91 Non Departmental, reduce Account No. 100.94910.00000.50290, "TFR Solid Waste" by $43,271, to reduce general fund transfer to Solid Waste due to reduction in PERS contribution;

Page 91 Non Departmental, reduce Account No. 100.94910.00000.50251, "TFR Kenai River Fund" by $10,427, to reduce general fund transfer to Kenai River Center due to reduction in PERS contribution;

Page 175 School Fund Maintenance Department, increase Account No. 241-41010.00000.48311, "Equipment Maintenance" by $120,467, to utilize savings from one time PERS reduction to purchase equipment that has been deferred due to budget constraints;

Page 189 Land Management Administration, increase Account No. 250.21210.00000.50100, "TFR General Fund" by $11,939, to increase transfer from Land Trust Fund to General Fund due to reduction in budgeted expenditures due to reduction in PERS.

MOTION TO AMEND PASSED: Unanimous.

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

MOTION PASSED: Unanimous.

MOTION TO AMEND: Moss moved to amend the proposed FY06 budget as recommended by the administration:

Page 189 Land Management Administration, reduce Account No. 250.21210.00000.48610, "Land Purchase" by $75,000, appropriations for land purchase should be done when the ordinance to acquire the land is presented to the assembly;

Page 189 Land Management Administration, increase Account No. 250.21210.00000.50100, "TFR General Fund" by $75,000, to increase transfer from Land Trust Fund to General Fund.

MOTION TO AMEND PASSED: Unanimous.

MOTION TO AMEND: Moss moved to amend the proposed FY06 budget as recommended by the administration:

Page 31 Assembly Clerk, "Personnel Services", by $8,123; and Page 35 Assembly Records Management, "Personnel Services", by $3,986, reduction in budgeted personnel costs due to new clerk and deputy clerk salaries being less than those previously budgeted.

MOTION TO AMEND PASSED: Unanimous.

MOTION TO AMEND: Moss moved to amend the proposed FY06 budget as recommended by the administration:

Page 91 Non Departmental, increase Account No. 100.94910.00000.43812, "Equipment Replacement Payment", by $300,000, to increase equity in Equipment Replacement fund.

MOTION TO AMEND PASSED: Unanimous.

MOTION TO AMEND: Glick moved to amend the proposed FY06 budget as follows:

Page 69 Financial Services, increase "Personnel Services" by $51,715 to fully fund the Audit Specialist position.

Assembly Members Martin, Sprague and Long spoke in favor of the amendment.

Assembly Member Chay spoke in opposition to the amendment.

VOTE ON MOTION TO AMEND:

Yes: Glick, Long, Martin, Moss, Sprague

No: Chay, Fischer, Merkes, Superman

Absent: None

MOTION TO AMEND PASSED: 5 Yes, 4 No, 1 Absent

MOTION TO AMEND: Martin moved to amend the proposed FY06 budget as follows:

Page 47 General Services-MIS, increase "Personnel Services" by $33,958 to fully fund the full-time position in Homer.

Assembly Member Moss spoke in favor of the amendment.

VOTE ON MOTION TO AMEND:

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

No: Chay, Fischer

Absent: None

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

MOTION TO AMEND: Sprague moved to amend the proposed FY06 budget as follows:

Page 41 Mayor Community & Economic Development Division, transfer $105,200 from "Personnel Services" to Page 39 Mayor Administration "Personnel Services" for the grants manager position and delete the remainder of the Mayor Community Economic & Development Division budget.

Assembly Members Merkes, Martin, Moss and Long spoke in opposition to the amendment.

Assembly Members Sprague and Chay spoke in favor of the amendment.

President Superman passed the gavel to Vice President Long. President Superman spoke in opposition to the amendment. Vice President Long returned the gavel to Assembly President Superman.

VOTE ON MOTION TO AMEND:

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

No: Chay, Glick, Sprague

Absent: None

MOTION TO AMEND FAILED: 3 Yes, 6 No, 0 Absent

MOTION TO AMEND: Merkes moved to amend the proposed FY06 budget as follows:

Page 29 Assembly Administration, reduce Account No. 100.11110.43215, "Travel Out of State", by $10,000 for a total of $10,000.

Assembly Members Sprague and Long spoke in opposition to the amendment.

VOTE ON MOTION TO AMEND:

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

No: Glick, Long, Sprague

Absent: None

MOTION TO AMEND PASSED: 6 Yes, 3 No, 0 Absent

MOTION TO AMEND: Moss moved to amend the proposed FY06 budget as follows:

Page 29 Assembly Administration, reduce Account No. 100.11110.43210, "Transportation/Subsistence", by $10,000 for a total of $20,000.

President Superman passed the gavel to Vice President Long. President Superman spoke in opposition to the amendment. Vice President Long returned the gavel.

VOTE ON MOTION TO AMEND:

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

No: Long, Superman

Absent: None

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

MOTION TO AMEND: Moss moved to amend the proposed FY06 budget as follows:

Page 29 Assembly Administration, reduce Account No. 100.11110.43216, "Travel in State", by $15,000 for a total of $20,000.

VOTE ON MOTION TO AMEND:

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

No: Superman

Absent: None

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

MOTION TO AMEND: Merkes moved to amend proposed FY06 budget as follows:

Page 29 Assembly Administration, reduce Account No. 100.11110.43999, "Contingency", by $5,000 for a total $20,000.

VOTE ON MOTION TO AMEND:

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

No: Sprague

Absent: None

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

MOTION TO AMEND: Sprague moved to amend the proposed FY06 budget as follows:

Page 129 Central Emergency Services, increase "Personnel Services " by $5,046 in order to delete one Engineering/Paramedic position and add one Training Chief position.

MOTION TO AMEND PASSED: Unanimous.

MOTION TO AMEND: Sprague moved to amend the proposed FY06 budget as follows:

Page 175 School Fund Maintenance Department, reduce Account No. 241.41010.43870 "Building/Grounds Maintenance", by $84,380 for a total of $175,000.

Assembly Members Long and Moss spoke in opposition to the amendment.

Assembly Member Fischer spoke in favor of the amendment.

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

Page 175 School Fund Maintenance Department, transfer $84,380 from Account No. 241.41010.43780 "Building/Grounds Maintenance" to Account No. 241.41010.43764 "Snow Removal" for a total of $324,380.

VOTE ON SECONDARY AMENDMENT:

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

No: Martin, Merkes, Sprague

Absent: None

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

Having reached the legislative deadline, President Superman recessed the meeting at 11:59 p.m. The Assembly was scheduled to reconvene at 10:00 a.m. on Thursday, June 9, 2005.

CALL TO ORDER

The Regular Meeting of the Kenai Peninsula Borough Assembly reconvened on June 9, 2005, in the Borough Assembly Chambers, Soldotna, Alaska. President Superman called the meeting to order at 10:00 a.m.

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:

Colette Thompson, Borough Attorney

Sherry Biggs, Borough Clerk

Johni Blankenship, Deputy Clerk

[Clerk's Note: The assembly addressed Mr. Sprague's motion to amend Ordinance 2005-19, as amended, at the June 7, 2005 meeting.]

Assembly Member Long spoke in opposition to the Sprague amendment.

VOTE ON MAIN MOTION AS AMENDED:

Yes: Fischer, Sprague

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

Absent: None

MAIN MOTION AS AMENDED FAILED: 2 Yes, 7 No, 0 Absent

MOTION TO AMEND: Fischer moved to amend Ordinance 2005-19 as follows:

Add a new Section 13 to read, "As of January 31, 2006 the appropriation for Community & Economic Development Division of the Mayor's Department will expire unless additional spending is approved by assembly resolution. All expenditures shall be completed prior to the above date, and no encumbrances shall be made for expenditures, which shall incur a liability for the borough beyond said date."

And to renumber the remaining section accordingly.

Assembly Members Martin and Sprague spoke in opposition to the amendment.

Assembly Members Fischer and Long spoke in favor of the amendment.

President Superman passed the gavel. President Superman spoke in favor of the amendment. Vice President Long returned the gavel.

MOTION TO AMEND: (Secondary) Martin moved to amend the Fischer amendment as follows:

"As of January 31, 2006 the appropriation for Community & Economic Development Division of the Mayor's Department , with the exception of the grants manager position which would be moved to the mayor's budget, will expire unless additional spending is approved by assembly resolution. All expenditures shall be completed prior to the above date, and no encumbrances shall be made for expenditures, which shall incur a liability for the borough beyond said date."

Mayor Bagley spoke in opposition to the secondary amendment.

Assembly Member Glick spoke in opposition to the amendment.

VOTE ON SECONDARY AMENDMENT:

Yes: Glick, Martin

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

Absent: None

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

Assembly Members Martin, Merkes, Sprague and Moss spoke in opposition to the amendment.

Assembly Members Long, Fischer and Chay spoke in favor of the amendment.

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

Section 13 to read, "As of January 31, 2006 the appropriation of $269,351 for the Community & Economic Development Division of the Mayor's Department (page 41 of proposed budget) will expire unless additional spending is approved by assembly resolution. All expenditures shall be completed prior to the above date, and no encumbrances shall be made for expenditures, which shall incur a liability for the borough beyond said date.

Assembly Member Long spoke in opposition to the amendment.

Assembly Member Moss spoke in favor of the amendment.

VOTE ON SECONDARY AMENDMENT:

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

No: Long, Merkes, Superman

Absent: None

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

VOTE ON MAIN MOTION AS AMENDED:

Yes: Chay, Glick, Fischer, Martin

No: Long, Merkes, Moss, Sprague, Superman

Absent: None

MAIN MOTION AS AMENDED FAILED: 4 Yes, 5 No, 0 Absent

President Superman passed the gavel to Vice President Long.

MOTION TO AMEND: Superman moved to amend the proposed FY06 budget as follows:

Page 91 Non Departmental, reduce Account No. 100.94910.43011, "Contractual Services-Small Business Development Center", by $12,985 for a total of $99,878.

MOTION TO AMEND: (Secondary) Fischer moved to amend the proposed FY06 budget as follows:

Page 91 Non Departmental, reduce Account 100.94910.43011, "Contractual Services-Small Business Development Center (SBDC)", by $112,863 for a total of $0.

Assembly Members Glick and Fischer spoke in favor of the amendment.

Assembly Members Superman and Moss spoke in opposition to the amendment.

VOTE ON SECONDARY AMENDMENT:

Yes: Chay, Glick Fischer

No: Long, Martin, Merkes, Moss, Sprague, Superman

Absent: None

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

MAIN MOTION PASSED: Unanimous.

The gavel was returned to President Superman.

MOTION TO AMEND: Merkes moved to amend the proposed FY06 budget as follows:

Page 91 Non Departmental, reduce Account No. 100.94910.43010, "Contractual Services-CARTS", by $20,000 for a total of $30,000.

Assembly Member Chay spoke in opposition to the amendment.

VOTE ON MOTION TO AMEND:

Yes: Fischer, Glick, Martin, Merkes, Moss,

No: Chay, Long, Sprague, Superman

Absent: None

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

MOTION TO AMEND: Merkes moved to amend the proposed FY06 budget as follows:

Page 91 Non Departmental, reduce Account No. 100.94910.43011, "Contractual Services-Lobby", by $30,000 for a total of $25,000.

Assembly Member Long spoke in opposition to the amendment.

Assembly Member Fischer spoke in favor of the amendment.

VOTE ON MOTION TO AMEND:

Yes: Chay, Fischer, Glick, Merkes

No: Long, Martin, Moss, Sprague, Superman

Absent: None

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

MOTION TO AMEND: Merkes moved to amend the proposed FY06 budget as follows:

Page 91 Non Departmental, reduce Account No. 100.94910.43011, "Contractual Services-CISB", by $50,000 for a total of $75,000.

MOTION TO AMEND: (Secondary) Moss moved to amend the proposed FY06 budget as follows:

Page 91 Non Departmental, reduce Department 100.94910.43010, "Contractual Services-CISB", by $25,000 for a total of $100,000.

Assembly Member Fischer spoke in opposition to the amendments.

VOTE ON SECONDARY AMENDMENT:

Yes: Chay, Long, Merkes, Moss

No: Glick, Fischer, Martin, Sprague, Superman

Absent: None

SECONDARY AMENDMENT FAILED: 4 Yes, 5 No, 0 Absent

VOTE ON MAIN MOTION:

Yes: Chay, Glick, Merkes, Sprague

No: Fischer, Long, Martin, Moss, Superman

Absent: None

MAIN MOTION FAILED: 4 Yes, 5 No, 0 Absent

MOTION TO AMEND: Merkes moved to amend the proposed FY06 budget as follows:

Page 91 Non Departmental, reduce Account No. 100.94910.43021, "Peninsula Promotion", by $45,000 for a total of $172,500.

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

Page 91 Non Departmental, reduce Account No. 100.94910.43010, "Peninsula Promotion", by $95,000 for a total of $122,500.

VOTE ON SECONDARY AMENDMENT:

Yes: Chay, Fischer, Merkes

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

Absent: None

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

VOTE ON MAIN MOTION:

Yes: Chay, Fischer, Merkes, Moss

No: Glick, Long, Martin, Sprague, Superman

Absent: None

MAIN MOTION FAILED: 4 Yes, 5 No, 0 Absent

MOTION TO AMEND: Chay moved to amend the proposed FY06 budget as follows:

Page 91 Non Departmental, reduce Account No. 100.94910.43011, "Contractual Services-AWG", by $75,000 for a total of $25,000.

Assembly Members Glick, Fischer and Martin spoke in opposition to the amendment.

VOTE ON MOTION TO AMEND:

Yes: Chay

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

Absent: None

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

MOTION TO AMEND: Fischer moved to amend the proposed FY06 budget as follows:

Page 193 Department 21135 Kenai River Center, reduce the overall budget by 1 percent ($4,683) for a total of $461,927.

Assembly Members Long, Sprague and Martin spoke in opposition to the amendment.

VOTE ON MOTION TO AMEND:

Yes: Fischer, Merkes

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

Absent: None

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

[Clerk's Note: The assembly recessed for lunch at 12:17 p.m. and reconvened at 12:55 p.m.]

MOTION TO AMEND: Chay moved to amend the proposed FY06 budget as follows:

Page 91 Non Departmental, reduce Account No. 100.94910.43009, "Contractual Services-EDD", by $50,000 for a total of $0.

Assembly Members Long, Martin, Moss and Sprague spoke in opposition to the amendment.

Assembly Member Fischer spoke in favor of the amendment.

VOTE ON MOTION TO AMEND:

Yes: Chay, Fischer, Merkes

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

Absent: None

MOTION TO AMEND FAILED: 3 Yes, 6 No, 0 Absent

MOTION TO AMEND: Sprague moved to amend the proposed FY06 budget as follows:

Page 83 Resource Planning Administration, add Account No. 100.21110.43015 "Sampling" and appropriate $5,000 for water quality testing in the Kenai River, for a total of $5,000.

VOTE ON MOTION TO AMEND:

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

No: Fischer

Absent: None

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

MOTION TO AMEND: Fischer moved to amend the proposed FY06 budget as follows:

Page 83 Resource Planning Administration, decrease Account No. 100.21110.43720, "Equipment Maintenance", by $5,000 for a total of $5,000.

Assembly Member Martin spoke in opposition to the amendment.

VOTE ON MOTION TO AMEND:

Yes: Glick, Fischer

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

Absent: None

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

MOTION TO AMEND: Long moved to amend Ordinance 2005-19 as follows:

Section 1. to read, "That $60,150,634 [$60,195,214] is appropriated in the General Fund for the fiscal year beginning July 1, 2005 and ending June 30, 2006 as follows:

General Government Operations $13,497,932 [13,788,814]...

Transfer to Special Revenue Funds:

Solid Waste $4,166,239 [4,209,510]

Kenai River Center $ 417,168 [427,595]...

Transfer to Proprietary Funds:

Equipment Replacement Fund $300,000"

Section 4. to read, "That the appropriations for the Special Revenue Funds for the fiscal year beginning July 1, 2005 and ending June 30, 2006 are as follows:

Nikiski Fire Service Area $3,028,865 [3,101.621]...

Anchor Point Fire & Emergency

Medical Service Area 395,791 [398,189]

Central Emergency Service Area 4,159,677 [4,240,425]...

N. Peninsula Recreation SA 1,153,292 [1,168,738]

KPB Road Service Area 4,050,200 [4,068,701]...

Kenai River Fund 456,183 [466,610]

Seward Bear Creek Flood SA 86,953 [87,752]...

Nikiski Senior Service Area 208,973 [211,073]

Solid Waste 5,592,670 [5,635,941]..."

Section 10. to read, " That appropriations for the Internal Service Funds for the fiscal year beginning July 1, 2005 and ending June 30, 2006 are as follows:

Insurance and Litigation $3,145,879 [3,159,396]

Equipment Replacement 553,090 "

MOTION TO AMEND PASSED: Unanimous.

VOTE ON MOTION TO ENACT AS AMENDED:

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

No: Glick, Fischer

Absent: None

MOTION TO ENACT AS AMENDED PASSED: 7 Yes, 2 No, 0 Absent

(2:06:17)

Resolution 2005-043: Setting the Rate of Levy for Real and Personal Property Taxes for the Kenai Peninsula Borough and for Service Areas within the Borough for the Tax Year 2005 (Mayor) (Referred to Finance Committee)

MOTION: Moss moved to adopt Resolution 2005-043.

Assembly Member Moss an amendment was forthcoming.

President Superman called for public comment.

The following person spoke in opposition to the mill rate of 3.0 for the Nikiski Fire Service Area as set forth in Resolution 2005-043:

Mae Leighton, PO Box 8167, Nikiski, AK

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

MOTION TO AMEND: Sprague moved to amend Resolution 2000-043 as follows:

Section 1. to read, "That the rate of levy of taxes on all real and personal [6.60] 6.50 mills on each one dollar of assessed value as determined by the assessment roll and any supplemental rolls hereafter certified by the Borough Assessor."

Assembly Members Long and Fischer spoke in favor of the amendment.

Assembly Members Chay, Martin and Moss spoke in opposition to the amendment.

VOTE ON MOTION TO AMEND:

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

No: Chay, Martin, Moss

Absent: None

MOTION TO AMEND PASSED: 6 Yes, 3 No, 0 Absent

MOTION TO AMEND: Merkes moved to amend Resolution 2005-043 as follows:

Section 2. to read, "That in addition to any other rate or rates of levy applicable for other purposes, the rate of levy of taxes on all real and personal property within the Nikiski Fire Service Area for said area for the tax year of 2005 is hereby set at [3.00]2.30 mills on each one dollar of assessed value as determined by the assessment roll and any supplemental rolls hereafter certified by the Borough Assessor."

President Superman passed the gavel to Vice President Long. President Superman spoke in favor of the amendment. Vice President Long returned the gavel.

Assembly Members Sprague and Chay spoke in opposition to the amendment.

Assembly Members Glick, Moss and Fischer spoke in support of the amendment.

VOTE ON MOTION TO AMEND:

Yes: Glick, Fischer, Long, Martin, Merkes, Moss, Superman

No: Chay, Sprague

Absent: None

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

MOTION TO AMEND: Martin moved to amend Resolution 2005-043 as follows:

Section 10 to read, "That in addition to any other rate or rates of levy applicable for other purposes, the rate of levy of taxes on all real and personal property within the Kenai Peninsula Borough Road Service Area for said area for the tax year of 2005 is hereby set at [1.30]1.40 mill on each one dollar of assessed value as determined by the assessment roll and any supplemental rolls hereafter certified by the Borough Assessor."

Assembly Member Merkes spoke in opposition to the amendment.

Assembly Member Long spoke in favor of the amendment.

VOTE ON MOTION TO AMEND:

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

No: Fischer, Merkes, Moss

Absent: None

MOTION TO AMEND PASSED: 6 Yes, 3 No, 0 Absent

MOTION TO AMEND: Fischer moved to amend Resolution 2005-043 as follows:

Section 11 to read, "That in addition to any other rate or rates of levy applicable for other purposes, the rate of levy of taxes on all real and personal property within the Kenai Peninsula Borough for Post Secondary Education for said area for the tax year of 2005 is hereby set at [.10].09 mill on each one dollar of assessed value as determined by the assessment roll and any supplemental rolls hereafter certified by the Borough Assessor."

Assembly Members Martin, Long, Chay and Sprague spoke in opposition to the amendment.

VOTE ON MOTION TO AMEND:

Yes: Fischer

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

Absent: None

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

MOTION TO ENACT AS AMENDED PASSED: Unanimous.

(3:07:45)

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)

MOTION: Merkes moved to adopt Resolution 2005-044.

President Superman called for public comment.

The following people spoke in support of Resolution 2005-044:

Harry Pierce, 37645 Sarah Street, Soldotna, AK

Byron Bondurant, 32730 Riverwind Drive, Soldotna, AK

Howard Merchant, 35210 Funny River Road, Soldotna, AK

Warren Hoflich, 33.5 Mile Kenai River, Soldotna, AK

Patty Wright, End of Killey Street, Soldotna, AK

The following people spoke in opposition to Resolution 2005-044:

David Morris, 36083 Betty Lou Drive, Sterling, AK

Rose Marie Galloway, PO Box 2613, Soldotna, AK

Barbara Cameron, PO Box 1465, Sterling, AK

Art Roseberry, PO Box 1190, Sterling, AK

Beth Boucher, 35660 Silver Salmon Ave, Soldotna, AK

Dick Galloway, PO Box 2613, Sterling, AK

Dave Paulsen, PO Box 1293, Sterling, AK

Vicki Pate, PO Box 7447, Nikiski, AK

Leroy Sandovall, 37598 King Salmon Avenue, Soldotna, AK

Winston Watkins, 35694 King Salmon Ave, Soldotna, AK

Jerry Mellet, PO Box 1456, Sterling, AK

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

MOTION TO POSTPONE: Fischer moved to postpone Resolution 2005-044 until the August 2, 2005, meeting.

Assembly Members Chay and Long spoke in opposition to postponement.

Assembly Member Fischer spoke in favor of postponement, as Mayor Bagley planned to introduce a substitute resolution.

VOTE ON MOTION TO POSTPONE:

Yes: Fischer, Merkes, Superman

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

Absent: None

MOTION TO POSTPONE FAILED: 3 Yes, 6 No, 0 Absent

MOTION TO TABLE: Fischer moved to table Resolution 2005-044.

VOTE ON MOTION TO TABLE:

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

No: Glick, Moss

Absent: None

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

PUBLIC HEARINGS ON ORDINANCES

(4:40:53)

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) (Referred to Finance Committee)

MOTION: Moss moved to enact Ordinance 2004-19-52.

Assembly Member Moss stated the grant would be used to train individuals as first responders in emergencies.

President Superman called for public comment with none being offered.

MOTION TO ENACT PASSED: Unanimous.

(4:42:08)

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) (Referred to Finance Committee)

MOTION: Moss moved to enact Ordinance 2004-19-53.

Assembly Member Moss stated the funds would be used for disaster preparedness planning, training and related exercises.

President Superman called for public comment with none being offered.

MOTION TO ENACT PASSED: Unanimous.

UNFINISHED BUSINESS

(4:55:48)

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: Reconsideration was filed by Mr. Fischer on May 17, 2005.]

MOTION: Fischer moved to reconsider Ordinance 2005-05(Glick) Substitute.

Assembly Member Chay spoke in favor of reconsideration.

Assembly Member Long spoke in opposition to reconsider.

VOTE ON MOTION TO RECONSIDER:

Yes: Chay, Fischer, Martin, Merkes, Superman

No: Glick, Long, Moss, Sprague

Absent: None

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

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

Section 2 to read, "5.20.190 Use of Transient [OCCUPANCY] Accommodations Taxes. The room tax fund is established to account for revenues from the transient [OCCUPANCY] accommodations tax to be used for tourism marketing.

(A) On the first business day of July following the close of the preceding fiscal year, an amount equal to at least 25 percent of the transient [ROOM] accommodations taxes received for the preceding fiscal year shall be transferred to the room tax fund. Subsequent closing and audit adjustments to transient [ROOM] accommodations tax revenue of the preceding fiscal year shall be made to the room tax fund as necessary.

(B) [AN AMOUNT EQUIVALENT TO AT LEAST 25 PERCENT OF THE PRIOR YEAR TRANSIENT ROOM TAX REVENUES SHALL BE TRANSFERRED TO THE ROOM TAX FUND.] The balance of transient accommodations taxes remaining after funds have been transferred to the room tax fund as provided in subparagraph A of this section [THE REVENUES GENERATED UNDER THIS PROGRAM WOULD] shall be available to support general government operations."

Section 4 to read, "That Section [2] 3 shall become effective immediately upon the enactment of this ordinance."

Section 5 to read, "That Sections 1 and 2 of this ordinance shall become effective January 1, 2006, only if the proposition contained in Section [2] 3 is approved by a majority of voters voting on the question in the regular election of October 4, 2005."

Assembly Member Martin spoke in favor of the amendment.

VOTE ON MOTION TO AMEND:

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

No: Merkes, Superman

Absent: None

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

Assembly Members Martin and Long spoke in favor of Ordinance 2005-05(Glick) Substitute.

Assembly Members Fischer and Chay spoke in opposition to Ordinance 2005-05(Glick) Substitute.

VOTE ON MOTION TO ENACT AS AMENDED:

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

No: Fischer, Merkes, Superman

Absent: None

MOTION TO ENACT AS AMENDED PASSED: 6 Yes, 3 No, 0 Absent

(5:17:13)

Resolution 2005-050: Reclassifying Certain Borough Land Located in the Russian Gap Area of Cooper Landing, Section 25, T5N, R3W, S. M., Alaska, as Recreational (Mayor) (Referred to Lands Committee)

Resolution 2005-050 (Mayor's) Substitute: Reclassifying Certain Borough Land Located in the Russian Gap Area of Cooper Landing, Section 25, T5N, R3W, S. M., Alaska, as Recreational and Residential (Mayor) (Referred to Lands Committee)

MOTION: Merkes moved to adopt Resolution 2005-050.

Assembly Member Merkes stated the resolution reclassified the land back to recreational as the Cooper Landing Senior Citizens did not use the property for a senior center. Ms. Merkes stated the Land Management Division had a substitute resolution.

MOTION TO AMEND BY SUBSTITUTION: Merkes moved to amend Resolution 2005-050 by substitution.

President Superman called for public comment with none being offered.

Assembly Members Martin and Long spoke in opposition to the Mayor's substitute.

MOTION TO POSTPONE: Merkes moved to postpone Resolution 2005-050 and Resolution 2005-05(Mayor's) Substitute until the August 2, 2005 Regular Assembly Meeting.

MOTION TO POSTPONE PASSED: Unanimous.

(5:27:14)

Resolution 2005-051: Authorizing the Assessor to Assess Low-Income Housing Tax Credit (LIHTC) Project Based on Restricted Rents (Mayor) (Referred to Finance Committee)

MOTION: Merkes moved to adopt Resolution 2005-051.

Assembly Member Moss stated the resolution would allow a tax credit for low-income housing and if adopted would have a negative fiscal impact on property taxes of $19,790.70.

President Superman called for public comment with none being offered.

Assembly Members Glick and Moss spoke in opposition to Resolution 2005-051.

VOTE ON MOTION TO ADOPT:

Yes: Long, Martin, Superman

No: Chay, Fischer, Glick, Merkes, Moss, Sprague

Absent: None

MOTION TO ADOPT FAILED: 3 Yes, 6 No, 0 Absent

(5:46:35)

ASSEMBLY MEETING AND HEARING ANNOUNCEMENTS

• A Board of Equalization hearing was scheduled for June 16, 2005, at 9:00 a.m. in the Assembly Chambers of the Kenai Peninsula Borough Administration Building, Soldotna, Alaska.

• The next meeting of the Kenai Peninsula Borough Assembly was scheduled for June 21, 2005, at 7:00 p.m. in the Assembly Chambers of the Kenai Peninsula Borough Administration Building, Soldotna, Alaska.

ASSEMBLY COMMENTS

Assembly Member Fischer thanked the assembly for their efforts in approving the budget.

Assembly Member Martin announced the Kachemak Emergency Service Area building dedication was scheduled for Saturday, June 18, 2005, at 1:00 p.m.

Assembly Member Sprague thanked the assembly for their efforts in approving the budget.

Assembly Members Long and Merkes commended President Superman on a job well done on the lengthy meeting and budget cycle.

President Superman thanked everyone for their efforts and patience.

ADJOURNMENT (5:50:48)

With no additional business to come before the assembly, President Superman adjourned the meeting at 5:50 p.m.

I certify the above represents accurate minutes of the Kenai Peninsula Borough Assembly meeting of June 7, 2005 and its continuance on June 9, 2005.