CALL TO ORDER

A Regular Meeting of the Kenai Peninsula Borough Assembly was held on October 11, 2005, in the Borough Administration Building, Assembly Chambers, 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 from Kenai Fellowship in Kenai, Alaska.

There were present:

Gary Superman, Presiding

Dan Chay

Betty Glick

Paul Fischer

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 (7:03:20)

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

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

Assembly Member Chay said the Policies and Procedures Committee met and discussed its agenda items.

Vice President Long stated the Legislative Committee met and discussed its brief agenda. Representative Mike Chenault fielded questions from the Assembly regarding the effects of the passage of Proposition 4 on future legislative funding.

APPROVAL OF AGENDA AND CONSENT AGENDA (7:13:39)

MOTION TO APPROVE AGENDAS: Glick moved for the approval of the agenda and consent agenda.

President Superman called for additions, corrections or deletions to the agenda or consent agenda.

The following items were removed from the consent agenda:

• Resolution 2005-088: Authorizing Award of Contract for Professional Design Services for the Nikolaevsk Fire Substation Project (Mayor) (Referred to Finance Committee)
• Resolution 2005-091: Supporting the Sterling Senior Center Grant Application to Alaska Housing Finance Corporation (Merkes) (Referred to Policies and Procedures 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.

• September 20, 2005 Regular Assembly Meeting Minutes
• Resolution 2005-089: In Support of the Continuing Work of the Cook Inlet Aquaculture Association (Moss) (Referred to Policies and Procedures Committee)
• Resolution 2005-090: Supporting the Inclusion of Cook Inlet in the Outer Continental Shelf Oil & Natural Gas Leasing Program for 2007-2012 (Mayor) (Referred to Lands Committee)
• Resolution 2005-092: Certifying the Results of the October 4, 2005 Regular Borough Election (Superman at the request of the Borough Clerk) (Referred to Policies and Procedures Committee)
• Ordinance 2005-19-31: Accepting and Appropriating Two State Grants Totaling $460,000 for School Equipment and Supplies (Mayor) (Hearing 11/15/05) (Referred to Finance Committee)
• Petition to Vacate a 50-foot Section Line Easement along the Southern Boundary of Lot 25B Subdivision of Government Lot 25 (Plat HM 86-73); Section 20, Township 2 South, Range 14 West, Seward Meridian, Alaska; and within the Kenai Peninsula Borough. KPB File 2004-179 (Postponed from July 19, 2004 meeting); Petitioners: Donald A. and Judith A. McDonald of Ninilchik, Alaska; Location: West of Sterling Hwy in Ninilchik (Referred to Lands Committee)
• Petition to Vacate the 33-foot Roadway and Public Utility Easements, along the East and West sides of Government Lots 7 & 8, Along the North Side of Lot 7 and the South Side of Lot 8 Reserved by Patent; within Section 12, Township 6 South, Range 14 West, Seward Meridian,

Alaska; and within the Kenai Peninsula Borough; KPB File 2005-210; Petitioners: Judith A. and R. J. Davis of Homer, Alaska; Location: West of Diamond Ridge Road in Homer (Referred to Lands Committee)

• Confirmation of New Department Head, Fred W. Swen - Chief, Nikiski Fire Service Area (Referred to Policies and Procedures Committee)

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

AGENDAS APPROVED AS AMENDED: Unanimous.

(7:19:56)

VACANCY, DESIGNATION AND SEATING OF ASSEMBLY MEMBERS

Borough Clerk Sherry Biggs swore in Margaret Gilman as the newly elected assembly member for District 2, Grace Merkes as the newly re-elected assembly member for District 5, and Deborah Germano as the newly elected assembly member for District 8.

Borough Clerk Sherry Biggs swore in Fred Swen as the new Nikiski Fire Chief.

(7:22:16)

COMMENDING RESOLUTIONS AND PROCLAMATIONS

Mayor Bagley read aloud a proclamation declaring October 2005 as "Domestic Violence Awareness Month" and presented it to Sherry Smith, Executive Director of the LeeShore Center.

PRESENTATIONS WITH PRIOR NOTICE (7:25:03)

Polly (Crawford) Blair, Ken Roser, Bob Blair and Peter Klauder asked that Frogberry Road be included in the borough road maintenance program.

Tim Dillon, General Manager of the Arctic Winter Games provided a quarterly progress report.

PUBLIC COMMENTS ON ITEMS NOT APPEARING ON THE AGENDA (7:59:49)

President Superman opened the public comment period with none being offered.

REPORTS OF COMMISSIONS AND COUNCILS - None.

MAYOR'S REPORT (8:00:00)

Spruce Bark Beetle Mitigation Program

• Approval of Contracts with Segesser Surveys for West Hill, Endicott Drive, Fishermans Avenue #2, and Subdivision Road Surveying Projects

• Approval of Bid Award and Contract with Hopkins Brothers Construction for the Port Graham Landfill Inert Waste Management Project
• Approval of Contract with B. J. Coopes, M.D., P.C. for Two Days Training for CES
• Approval of Contract with Blakeley's Auction Company for Auctioneering Services of Tax Foreclosed Parcels
• Approval of Contract with Blakeley's Auction Company for Auctioneering Services for KPB Outcry Auction
• Approval of Contract with McLane Consulting for Engineering Services associated with Road Upgrade for Chinulna Drive/Ocean Entrance Drive
• Approval of Contract with Wm. J. Nelson & Associates for Engineering Services associated with Road Upgrade for Ryan Lane, Centennial Subdivision, Whisperwood Subdivision and Wilderness Park Subdivision
• Approval of Bid Award and Contract with Great Northern Construction & Management for Delivery of Aggregate Material to Central Peninsula Landfill
• Approval of Bid Award to Holden Company for Construction Services for the Tustumena Elementary Water Treatment Building

• Other
• Recap of 2005 Surplus Property Auction
• Litigation Report - September 29, 2005

ITEMS NOT COMPLETED FROM PRIOR AGENDA - None.

PUBLIC HEARINGS ON ORDINANCES

(8:00:44)

Ordinance 2005-19-24: Accepting and Appropriating a State Grant in the Amount of $71,500 for a Mobile Hydrant Unit for the Bear Creek Fire Service Area (Mayor) (Referred to Finance Committee)

MOTION: Moss moved to enact Ordinance 2005-19-24.

Assembly Member Moss stated a state legislative grant was awarded to the Bear Creek Fire Service area and there would be no borough match required.

President Superman opened the public comment period with none being offered.

VOTE ON MOTION TO ENACT:

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

No: None

Absent: None

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

(8:02:19)

Ordinance 2005-19-26: Accepting and Appropriating a Grant from the Alaska Division of Homeland Security and Emergency Management in the Amount of $340,621 for Emergency Siren System Repairs and Upgrades (Mayor) (Referred to Finance Committee)

MOTION: Moss moved to enact Ordinance 2005-19-26.

Assembly Member Moss stated the current siren system in the borough was antiquated and required upgrading.

President Superman opened the public comment period with none being offered.

VOTE ON MOTION TO ENACT:

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

No: None

Absent: None

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

(8:06:16)

Ordinance 2005-39: Authorizing the Sale of Tract C of ITC Anchor Point Subdivision to Kachemak Gun Club, Inc. at Other than Fair Market Value (Mayor, Martin) (Referred to Lands Committee)

MOTION: Merkes moved to enact Ordinance 2005-39.

Assembly Member Merkes stated the ordinance would allow for the Kachemak Gun Club, Inc. to purchase land that they are currently leasing from the borough for less than fair market value.

President Superman opened the public comment period with none being offered.

MOTION TO AMEND: Merkes moved to amend Ordinance 2005-39 as follows:

Final Whereas to read, "the KPB Planning Commission at its regularly scheduled meeting of September 26, 2005 recommended enactment by unanimous consent."

MOTION TO AMEND PASSED: Unanimous.

VOTE ON MOTION TO ENACT AS AMENDED:

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

No: None

Absent: None

MOTION TO ENACT AS AMENDED PASSED: 9 Yes, 0 No, 0 Absent

(8:10:27)

Ordinance 2005-40: Amending KPB 5.12.100 to Exempt Certain Senior Housing from Real Property Taxation (Merkes) (Referred to Finance Committee)

MOTION: Moss moved to enact Ordinance 2005-40.

President Superman opened the public comment period.

The following people spoke in support of Ordinance 2005-40:

George Elser, President of the Sterling Area Senior Citizens, Inc. Sterling, AK

Fred Lau, Director of Homer Senior Citizens, Inc, 39395 Svedlund, Homer, AK

Jan Fena, Soldotna Area Senior Citizens, Inc., 197 Park Avenue, Soldotna, AK

Rachel Craig, Director of the Kenai Senior Citizens Center, 361 Senior Court, Kenai, AK

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

MOTION TO AMEND: Sprague moved to amend Ordinance 2005-40 as follows:

Final whereas to read, "Cooper Landing Senior Citizen Corporation, Inc., Homer Senior Citizens, Inc., Nikiski Senior Citizens, Inc., [AND] Sterling Area Senior Citizens, Inc., and Soldotna Area Senior Citizens, Inc. are nonprofit organizations dedicated to providing affordable housing to senior citizens;"

Section 1.(C) to read, "In addition to the community purpose exemptions granted by the assessor, the property of the following organizations used to provide senior citizen housing shall be exempt from real property taxation under this section provided that income derived from the rentals does not exceed the actual cost to the owner of the use by the renter:

a. Cooper Landing Senior Citizen Corporation, Inc.

b. Homer Senior Citizens, Inc.

• Nikiski Senior Citizens, Inc.
• Sterling Area Senior Citizens, Inc.
• Soldotna Area Senior Citizens, Inc."

MOTION TO AMEND PASSED: Unanimous.

MOTION TO AMEND: Martin moved to amend Ordinance 2005-40 as follows:

Final whereas to read, "Cooper Landing Senior Citizen Corporation, Inc., Homer Senior Citizens, Inc., Nikiski Senior Citizens, Inc., Sterling Area Senior Citizens, Inc., [AND] Soldotna Area Senior Citizens, Inc., and Anchor Point Senior Citizens Inc. are nonprofit organizations dedicated to providing affordable housing to senior citizens;"

Section 1.(C) to read, "In addition to the community purpose exemptions granted by the assessor, the property of the following organizations used to provide senior citizen housing shall be exempt from real property taxation under this section provided that income derived from the rentals does not exceed the actual cost to the owner of the use by the renter:

a. Cooper Landing Senior Citizen Corporation, Inc.

b. Homer Senior Citizens, Inc.

• Nikiski Senior Citizens, Inc.
• Sterling Area Senior Citizens, Inc.
• Soldotna Area Senior Citizens, Inc.
• Anchor Point Senior Citizens, Inc."

MOTION TO AMEND PASSED: Unanimous.

Assembly Member Glick spoke in opposition to the amendment.

Borough Assessor Shane Horan gave a brief explanation of his interpretation of "community service" according to Alaska State Statues.

MOTION TO AMEND: Merkes moved to amend Ordinance 2005-40 as follows:

Section 1(C) to read, "In addition to the community purpose exemptions granted by the assessor, the property of the following organizations used to provide senior citizen housing shall be exempt from real property taxation under this section [PROVIDED THAT INCOME DERIVED FROM THE RENTALS DOES NOT EXCEED THE ACTUAL COST TO THE OWNER OF THE USE BY THE RENTER]:"

MOTION TO AMEND PASSED: Unanimous.

MOTION TO AMEND: Martin moved to amend Ordinance 2005-40 as follows:

Section 2 to read, "That this ordinance is retroactive to January 1, 2005. [TAKES EFFECT IMMEDIATELY UPON ITS ENACTMENT]"

MOTION TO AMEND PASSED: Unanimous.

Assembly Members Long and Martin spoke in support of Ordinance 2005-40.

VOTE ON MOTION TO ENACT AS AMENDED:

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

No: None

Absent: None

MOTION TO ENACT AS AMENDED PASSED: 9 Yes, 0 No, 0 Absent

UNFINISHED BUSINESS - None.

NEW BUSINESS

(9:11:50)

Resolution 2005-088: Authorizing Award of Contract for Professional Design Services for the Nikolaevsk Fire Substation Project (Mayor) (Referred to Finance Committee)

MOTION: Moss moved to adopt Resolution 2005-088.

President Superman opened the public comment period with none being offered.

MOTION TO POSTPONE: Moss moved to postpone Resolution 2005-088 until the November 1, 2005 meeting.

VOTE ON MOTION TO POSTPONE:

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

No: None

Absent: None

MOTION TO POSTPONE PASSED: 9 Yes, 0 No, 0 Absent

(9:12:11)

Resolution 2005-091: Supporting the Sterling Senior Center Grant Application to Alaska Housing Finance Corporation (Merkes) (Referred to Policies and Procedures Committee)

MOTION: Chay moved to adopt Resolution 2005-091.

President Superman opened the public comment period.

The following people spoke in support of Resolution 2005-091:

George Elser, President of Sterling Senior Citizens, Inc., Sterling, AK

Jan Fena, Soldotna Area Senior Citizens, Inc, 361 Senior Court, Soldotna, AK

Assembly Member Fischer stated if he had a conflict of interest as he was a Soldotna Area Senior Citizens, Inc. board member. President Superman ruled that Assembly Member Fischer did have a conflict and he abstained from any further action on the resolution.

Assembly Member Merkes spoke in support of Resolution 2005-091.

Assembly Member Sprague spoke in opposition to Resolution 2005-091.

MOTION TO AMEND: Glick moved to amend Resolution 2005-091 as follows:

Final whereas to read, "the Sterling Senior Center has been serving the needs of the area for over 15 years and has proven [THE PROVEN] there is a need for senior housing;"

MOTION TO AMEND PASSED: Unanimous.

MOTION TO AMEND: Merkes moved to amend Resolution 2005-091 as follows:

Second whereas to read, "the Sterling Senior Citizens Center is making application to Alaska Housing Finance Corporation for Phase II, consisting of [10 TWO-BEDROOM] independent living rental units; and"

MOTION TO AMEND PASSED: Unanimous.

President Superman passed the gavel to Vice President Long. President Superman requested a letter of support also be sent to the Alaska Housing Finance Corporation in support of Nikiski Senior Citizens, Inc. grant application. Vice President Long returned the gavel to President Superman.

Assembly Member Sprague requested to add the Soldotna Area Senior Citizens Inc. to the letter to the Alaska Housing Finance Corporation supporting their grant application.

Assembly Member Chay spoke in support of Resolution 2005-091.

VOTE ON MOTION TO ADOPT AS AMENDED:

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

No: None

Absent: None

Abstain: Fischer

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

PUBLIC COMMENTS AND PUBLIC PRESENTATIONS

(9:37:13)

President Superman and Borough Clerk Sherry Biggs presented Chris Moss and Betty Glick with plaques of appreciation for serving on the Kenai Peninsula Borough Assembly.

With no objection from the other members of the assembly, President Superman said he would send a letter of support to the Alaska Housing Finance Corporation on behalf of the Nikiski Senior Citizens, Inc. and the Soldotna Area Senior Citizens, Inc.

ASSEMBLY MEETING AND HEARING ANNOUNCEMENTS

• �The next meeting of the Kenai Peninsula Borough Assembly was scheduled for November 1, 2005, at 7:00 p.m. in the Assembly Chambers of the Borough Administration Building in Soldotna, Alaska.

ASSEMBLY COMMENTS

(9:40:10)

Assembly Member Moss commented on his tenure as an Assembly Member for the Kenai Peninsula Borough and thanked the Clerk's Office and the Borough Administration and staff for their support over the past six years.

Assembly Member Glick stated it was her honor and privilege to serving on the Kenai Peninsula Borough Assembly.

Assembly Member Fischer commented on the letter from Finance Director Scott Holt regarding the impact of Propositions 1 and 5. He wished Assembly Members Moss and Glick well in their future.

Assembly Member Martin spoke in support of the contract for the new sales tax software. She thanked Assembly Member Glick for her support over the last three years and wished her well in the future. She further wished Assembly Member Moss well in his future and thanked him for his service to the Southern Peninsula over the last six years. She commented on the outcome of the election and the approval of Propositions 4 and 5.

Assembly Member Sprague thanked all the candidates for running in the election and commended the Clerk and her staff for a job well done. He further stated his honor in serving with Assembly Members Moss and Glick and wished them well in their future.

Assembly Member Chay stated his appreciation to Assembly Members Moss and Glick for their service to the Kenai Peninsula Borough Assembly.

Assembly Member Merkes stated her appreciation to Assembly Members Moss and Glick for their service to the Kenai Peninsula Borough Assembly and requested calculators for the entire Assembly as Mr. Moss would no longer be available to do the math.

Assembly Member Long encouraged the public to vote on October 25 during the Mayoral Runoff Election. He stated his privilege in serving with Assembly Member Moss and Glick and wished them happy trails.

Assembly Member Glick asked Borough Attorney Colette Thompson the following questions:

• �If four School Board Members campaigned in favor of one School Board candidate over another were they in violation of the Open Meetings Act?
• �Can an incumbent School Board Member use their borough email address as a contact during a campaign?
• �Were the four School Board Members in compliance with the Alaska Public Office's Commission, as their campaign advertisement did not provide a full disclaimer?
• �If no Opens Meetings Act violation occurred, was there an ethical violation?

Borough Attorney Thompson would provide answers to these questions at a later date.

President Superman thanked Assembly Members Moss and Glick for their service and stated it was his pleasure to work with them.

ADJOURNMENT (10:12:52)

With no further business to come before the assembly, President Superman adjourned the meeting at 10:12 p.m.

I certify the above represents accurate minutes of the Kenai Peninsula Borough Assembly meeting of October 11, 2005.

Approved by Assembly: