CALL TO ORDER

A Regular Meeting of the Kenai Peninsula Borough Assembly was held on January 3, 2006, in the Borough Administration Building, Assembly Chambers, Soldotna, Alaska. President Long 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 Dan Thornton from Peninsula Grace Brethren in Soldotna.

There were present:

Ron Long, Presiding

Dan Chay

Paul Fischer

Deb Germano

Margaret Gilman

Milli Martin

Grace Merkes

Pete Sprague

Gary Superman

comprising a quorum of the assembly.

Also in attendance were:

John Williams, Borough Mayor

Colette Thompson, Borough Attorney

Sherry Biggs, Borough Clerk

Johni Blankenship, Deputy Clerk

COMMITTEE REPORTS (7:02:00)

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

MOTION: Superman moved to increase Borough Clerk Sherry Biggs' salary by 4 percent for a new annual salary of $70,328, retroactive to November 1, 2005, based on her sixth month review per her hiring contract.

MOTION TO POSTPONE: Martin moved to postpone the motion until the January 17, 2006 meeting.

MOTION TO POSTPONE: (SECONDARY) Sprague moved to postpone the motion until the January 17, 2006 meeting and convene a Committee of the Whole to further discuss the motion.

SECONDARY MOTION PASSED: Unanimous.

MAIN MOTION TO POSTPONE PASSED: Unanimous.

Assembly Member Martin stated the Lands Committee met and discussed its brief agenda.

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

Assembly Member Sprague stated the Legislative Committee met and discussed its agenda consisting of Legislative Priorities.

APPROVAL OF AGENDA AND CONSENT AGENDA (7:27:27)

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

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

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

• Resolution 2006-003: Authorizing Amendment to the Participation Agreement with the Public Employees Retirement System (PERS) to Exclude the Position of Emergency Management Coordinator (Mayor) (Referred to Policies and Procedures Committee)

MOTION: Superman moved to add laydown Ordinance 2005-19-39 to the regular agenda.

VOTE ON MOTION:

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

No: Chay, Germano, Sprague

Absent: None

MOTION PASSED: 6 Yes, 3 No, 0 Absent

The following item was added to the regular agenda:

• Ordinance 2005-19-39: Revising the FY2006 Budget Due to Passage of Proposition 5 and Repealing and/or Reducing Previous Appropriations (Mayor) (Hearings on 01/17/06 & 02/07/06) (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.

• December 6, 2005 Regular Assembly Meeting Minutes
• September 21, 2005 Board of Adjustment Meeting Minutes
• Resolution 2006-002: Authorizing Award of a Contract for Construction Services for Nikiski High School Modifications 2005 (Mayor) (Referred to Finance Committee)
• Resolution 2006-001: A Resolution of Necessity Establishing the Moose Range Subdivision Utility Special Assessment District for Construction of a Natural Gas Main Line (Mayor) (Referred to Lands Committee)
• Resolution 2006-004: Authorizing the Acceptance of Late-Filed Senior Citizen and Disabled Veteran Exemption Applications (Mayor) (Referred to Policies and Procedures Committee)
• Resolution 2006-005: Authorizing Acceptance of Ownership and Maintenance of Jones Road from the State Department of Transportation and Public Facilities after the Road has been Upgraded and Paved to Kenai Peninsula Borough Road Standards (Mayor) (Referred to Lands Committee)
• Ordinance 2005-19-38: Accepting and Appropriating $38,000 from the U.S. Department of Homeland Security for Anchor Point Fire and Emergency Service Area for Firefighting Equipment (Mayor) (Hearing on 02/07/06) (Referred to Finance Committee)
• Ordinance 2006-01: Repealing KPB 21.26 and Enacting KPB Chapter 21.29, Material Site Permits (Long, Martin, Superman) (Hearings on 02/07/06 and 02/21/06) (Referred to Lands Committee)
• Authorizing an Application for a Transfer of Ownership and Relocation Liquor License Filed by Patricia Patterson dba Kalydipa, Inc. in Kenai from current licensee Donald Ridl dba Trophy Sports Hunting & Fishing Lodge (Referred to Finance Committee)

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

AGENDAS APPROVED AS AMENDED: Unanimous.

COMMENDING RESOLUTIONS AND PROCLAMATIONS - None.

PRESENTATIONS WITH PRIOR NOTICE - None.

PUBLIC COMMENTS ON ITEMS NOT APPEARING ON THE AGENDA

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

REPORTS OF COMMISSIONS AND COUNCILS - None.

MAYOR'S REPORT (7:35:53)

Approval of Contract with Wince-Corthell-Bryson for Structural Engineering Inspection at Soldotna High School, Soldotna Middle School and Skyview High School

Approval of Sole Source Contract with PDC, Inc. Engineers for New Oxygen Generator System at South Peninsula Hospital

Approval of Contract with Integrity Surveys for Surveying Acreage Around Snowshoe Gun Club and Twin City Raceway

2. Other

a. Litigation Status Report - December 22, 2005

Revenue - Expenditure Report - November 2005

Appointment of Scott Walden, Emergency Management Coordinator

Fiscal Year 2007 Preliminary Budget Calendar

Presentation of Transition Report (30 Minutes)

ITEMS NOT COMPLETED FROM PRIOR AGENDA - None.

PUBLIC HEARINGS ON ORDINANCES

(8:31:04)

Ordinance 2005-19-34: Canceling Nikiski Fire Service Area Capital Project #04411, and Increasing the Funding for Nikiski Fire Service Area Capital Project #06411 (Mayor) (Referred to Finance Committee)

MOTION: Superman moved to enact Ordinance 2005-19-34.

Assembly Member Superman stated the ordinance would appropriate an additional $50,000 for the purchase of two tankers instead of one tanker which was the originally intent.

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

VOTE ON MOTION TO ENACT:

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

No: None

Absent: None

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

(8:33:39)

Ordinance 2005-19-35: Accepting and Appropriating $71,338 from the U.S. Department of Homeland Security for Lowell Point Emergency Service Area for Training and Equipment (Mayor) (Referred to Finance Committee)

MOTION: Superman moved to enact Ordinance 2005-19-35.

Assembly Member Superman stated there would be a five percent local match required and would be appropriated from the service area budget.

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

MOTION TO AMEND: Superman moved to amend Ordinance 2005-19-35 as follows:

7^th Whereas to read, "at its regularly scheduled meeting held December 13, 2005, the LPESA Board recommended enactment by unanimous consent; and"

MOTION TO AMEND PASSED: Unanimous.

VOTE ON MOTION TO ENACT AS AMENDED:

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

No: None

Absent: None

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

(8:35:42)

Ordinance 2005-19-36: Accepting and Appropriating a Grant from the U.S. Department of Justice in the Amount of $986,643 for Emergency Response Communications (Mayor) (Referred to Finance Committee)

MOTION: Superman moved to enact Ordinance 2005-19-36.

Assembly Member Superman stated the grant money would be used for communications equipment, dispatch center consoles and for hiring an equipment consultant.

President Long opened the public comment period.

The following person spoke in opposition to Ordinance 2005-19-36:

Ruby Kime, 64955 Alice Avenue, Ninilchik

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

VOTE ON MOTION TO ENACT:

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

No: None

Absent: None

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

(8:40:16)

Ordinance 2005-19-37: Appropriating $18,258 in Supplemental Funding from the Bear Creek Fire Service Area Operating Fund Balance for the Purchase of a New Trailer and Rescue Equipment (Mayor) (Referred to Finance Committee)

MOTION TO ENACT: Superman moved to enact Ordinance 2005-19-37.

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

VOTE ON MOTION TO ENACT:

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

No: None

Absent: None

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

(8:42:34)

Ordinance 2005-46: Confirming the Assessment Roll for the Pollard Loop Utility Special Assessment District and Establishing the Method for Terminating Assessments and Making Refunds to Property Owners (Mayor) (Referred to Finance Committee)

MOTION: Superman moved to enact Ordinance 2005-46.

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

MOTION TO AMEND: Superman moved to amend Ordinance 2005-46 as follows:

Section 4 to read, "Payment of Assessment. That the entire assessment may be prepaid without interest or penalty within thirty days of the date of mailing of the assessment statement. Thereafter, the assessment may be prepaid in whole or in part with interest to the payment date. Interest on the unpaid amount of the assessment shall accrue at the rate of [9%] 9.25% per annum. Assessments that are not prepaid shall be paid in ten equal annual installments on March 31 of each year, commencing March 31, 2006. Installments shall include principal plus accrued interest."

MOTION TO AMEND PASSED: Unanimous.

VOTE ON MOTION TO ENACT AS AMENDED:

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

No: None

Absent: None

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

(8:44:48)

Ordinance 2005-47: Confirming the Assessment Roll for the Scooter's Landing Utility Special Assessment District and Establishing the Method for Terminating Assessments and Making Refunds to Property Owners (Mayor) (Referred to Finance Committee)

MOTION: Superman moved to enact Ordinance 2005-47.

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

MOTION TO AMEND: Superman moved to amend Ordinance 2005-47 as follows:

Section 4 to read, "Payment of Assessment. That the entire assessment may be prepaid without interest or penalty within thirty days of the date of mailing of the assessment statement. Thereafter, the assessment may be prepaid in whole or in part with interest to the payment date. Interest on the unpaid amount of the assessment shall accrue at the rate of [9%] 9.25 per annum. Assessments that are not prepaid shall be paid in ten equal annual installments on March 31 of each year, commencing March 31, 2006. Installments shall include principal plus accrued interest."

MOTION TO AMEND PASSED: Unanimous.

MOTION TO AMEND: Superman moved to amend the attached Final Assessment Roll as follows:

Owner of Parcel 063-470-43 to read, "John Kuczmarski, P.O. Box 39813, Ninilchik, AK"

Address of owner of Parcel 063-820-14 to read, "P.O. Box 34, McCracken, KS"

MOTION TO AMEND PASSED: Unanimous.

VOTE ON MOTION TO ENACT AS AMENDED:

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

No: None

Absent: None

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

(8:48:17)

Ordinance 2005-48: Adopting the 2020 Seward Comprehensive Plan as the Official Comprehensive Plan for that Portion of the Borough within the Boundaries of the City of Seward (Mayor) (Referred to Lands Committee)

MOTION: Martin moved to enact Ordinance 2005-48.

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

MOTION TO AMEND: Martin moved to amend Ordinance 2005-48 as follows:

8^th Whereas to read, "amendments to a city's comprehensive plan must be adopted by assembly ordinance in accordance with KPB 21.0[2]1.025.A; and"

Final Whereas to read, "the Kenai Peninsula Borough Planning Commission reviewed the plan during its regularly scheduled meeting of November 28, 2005 and recommended enactment by unanimous consent."

MOTION TO AMEND PASSED: Unanimous.

VOTE ON MOTION TO ENACT AS AMENDED:

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

No: None

Absent: None

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

(8:51:08)

Ordinance 2005-49: Amending KPB Chapter 12.02 Regarding Speed Limit Signs (Mayor) (Referred to Policies & Procedures Committee)

MOTION: Chay moved to enact Ordinance 2005-49.

Assembly Member Chay stated the ordinance would amend the borough code to align with Alaska State Statutes regarding speed limit signage.

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

Assembly Members Germano and Superman spoke in opposition to the ordinance.

MOTION TO AMEND: Superman moved to amend Ordinance 2005-49 as follows:

Add a new Section 4 to read, "That all existing signs on borough roads restricting speed limits, which were posted pursuant to KPB12.20.020(B), prior to the effective date of this ordinance, may remain in place indefinitely."

Renumber the existing Section 4 to Section 5

Assembly Members Germano and Merkes spoke in opposition to the amendment.

VOTE ON MOTION TO AMEND:

Yes: Chay, Fischer, Germano, Gilman, Martin, Superman

No: Merkes, Sprague, Long

Absent: None

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

Assembly Members Martin and Germano spoke in opposition to Ordinance 2005-49.

VOTE ON MOTION TO ENACT AS AMEND:

Yes: Fisher, Merkes, Sprague, Long

No: Chay, Germano, Gilman, Martin, Superman

Absent: None

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

(9:15:26) Ordinance 2005-50: Authorizing a Land Conveyance to the City of Soldotna of a 10-Acre Borough Parcel on W. Redoubt to Support a City Cemetery (Sprague) (Referred to Lands Committee)

MOTION: Martin moved to enact Ordinance 2005-50.

President Long opened the public comment period.

The following people spoke in opposition to Ordinance 2005-50:

Chris Pankrast, 109 Amaryllis Street, Soldotna, AK

John Dombovi, 112 Amaryllis Street, Soldotna, AK

Fred Sturman, PO Box 513, Soldotna, AK

Vicki Pate, PO Box 7447, Nikiski, AK

Ruby Kime, 64955 Alice Avenue, Ninilchik, AK

Nick Williams, PO Box 394, Soldotna, AK

James Price, 49185 Island Lake Road, Nikiski, AK

The following people spoke in support of Ordinance 2005-50:

Barbara Jewel, 186 E. Redoubt Avenue, Soldotna, AK

Thomas Boedeker, Soldotna City Manager, 315 Fairway Circle, Soldotna, AK

Kathryn Parker, 14622 Sterling Highway, Soldotna, AK

Dick Troeger, 372 Lupine Street, Soldotna, AK

Mayor David Carey, Soldotna City Mayor, 119 Shady Lane, Soldotna, AK

Ann Bayes, PO Box 575, Anchor Point, AK

Jim Fassler, VFW Member, 36815 Cheechako News Drive, Kenai, AK

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

MOTION TO AMEND: Martin moved to amend Ordinance 2005-50 as follows:

Final Whereas to read, "the KPB Planning Commission at its regularly scheduled meeting of December 12, 2005 recommended enactment by unanimous consent;"

MOTION TO AMEND PASSED: Unanimous.

MOTION TO AMEND: Martin moved to amend Ordinance 2005-50 as follows:

Section 2 to read, "The mayor is authorized, pursuant to KPB 17.10.100 to convey property [WITH]to the City of Soldotna as described in Section 1 above for the sum of $1.00. Borough land shall be conveyed to the City of Soldotna by Quitclaim Deed. The City of Soldotna shall be responsible for any surveying and platting required, title insurance, and any other closing costs. At the time of conveyance, an easement shall be reserved for the purpose of extending the Judy Lane public right-of-way to the north boundary of the subject parcel."

MOTION TO AMEND PASSED: Unanimous.

MOTION TO AMEND: Martin moved to amend Ordinance 2005-50 as follows:

Section 3 to read, "There shall be a deed restriction placed on the deed to the City of Soldotna. The deed restriction shall require that the parcel be used for cemetery purposes only, that it not be limited to use by Soldotna residents

but rather shall be available to the general public on equal fees and terms, and that use as a cemetery shall begin within five years of the date this ordinance is enacted. Burials must begin within this time frame. If at any time thereafter any portion of the parcel is used for purposes other than a cemetery, the borough shall have a right of reentry for a broken condition subsequent to the portion of the parcel not used as a cemetery.

MOTION TO AMEND PASSED: Unanimous.

Vice President Sprague spoke in support of Ordinance 2005-50.

Assembly Member Fischer spoke in opposition to Ordinance 2005-50.

MOTION TO POSTPONE: Fischer moved to postpone Ordinance 2005-50 until the January 17, 2006 meeting.

Assembly Members Sprague, Martin and Germano spoke in opposition to postponement.

Assembly Members Merkes, Superman and Chay spoke in support of postponement.

VOTE ON MOTION TO POSTPONE:

Yes: Chay, Fischer, Merkes, Superman

No: Germano, Gilman, Martin, Sprague, Long

Absent: Absent

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

MOTION TO AMEND: Germano moved to amend Ordinance 2005-50 as follows:

Section 2 to read, "The mayor is authorized, pursuant to KPB 17.10.100 to convey property with the City of Soldotna as described in Section 1 above for the sum of $100,000[1.00]. Borough land shall be conveyed to the City of Soldotna by Quitclaim Deed. The City of Soldotna shall be responsible for any surveying and platting required, title insurance, and any other closing costs."

Assembly Member Merkes spoke in support of the amendment.

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

Section 2 to read, "Section 2 to read, "The mayor is authorized, pursuant to KPB 17.10.100 to convey property with the City of Soldotna as described in Section 1 above for the sum of $55,000[100,000]. Borough land shall be conveyed to the City of Soldotna by Quitclaim Deed. The City of Soldotna shall be responsible for any surveying and platting required, title insurance, and any other closing costs."

Assembly Members Martin and Gilman spoke in opposition to the secondary amendment.

Assembly Members Chay, Germano and Sprague spoke in support of the secondary amendment.

President Long passed the gavel to Vice President Sprague and spoke in support of the secondary amendment. Vice President Sprague returned the gavel to President Long.

VOTE ON SECONDARY MOTION TO AMEND:

Yes: Chay, Germano, Martin, Merkes, Sprague, Long

No: Fischer, Gilman, Superman

Absent: None

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

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

MOTION PASSED: Unanimous.

VOTE ON MAIN MOTION:

Yes: Chay, Germano, Martin, Merkes, Sprague, Long

No: Fischer, Gilman, Superman

Absent: None

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

VOTE ON MOTION TO ENACT AS AMENDED:

Yes: Chay, Germano, Martin, Merkes, Sprague, Long

No: Fischer, Gilman, Superman

Absent: None

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

Assembly Member Merkes gave notice of reconsideration on Ordinance 2005-50.

(11:20:16)

Ordinance 2005-51 (Long) Substitute: Repealing Portions of Ordinance 2005-09, and Ordering a Special Election to Hold a Referendum Vote to Determine Whether or Not to Repeal the Remainder of Ordinance 2005-09, which Enacted Certain Revenue Enhancement Measures (Long) (Referred to Policies & Procedures Committee)

MOTION TO ENACT: Chay moved to enact Ordinance 2005-51 (Long) Substitute.

President Long opened the public comment period.

The following people spoke in opposition to Ordinance 2005-51 (Long) Substitute:

Ruby Kime, 64955 Alice Avenue, Ninilchik, AK

Vicki Pate, PO Box 7447, Nikiski, AK

Don Johnson, PO Box 876, Soldotna, AK

James Price, 49185 Island Lake Road, Nikiski, AK

Pamela Gillham, PO Box 2561, Soldotna, AK

Ann Bayes, PO Box 575, Anchor Point, AK

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

President Long passed the gavel to Vice President Sprague.

MOTION TO POSTPONE: Long moved to postpone Ordinance 2005-51 (Long) Substitute until the January 17, 2006 meeting.

VOTE ON MOTION TO POSTPONE:

Yes: Chay, Germano, Gilman, Martin, Merkes, Sprague, Superman, Long

No: Fischer

Absent: None

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

Vice President Sprague returned the gavel to President Long.

UNFINISHED BUSINESS - None.

NEW BUSINESS

(11:46:02)

Resolution 2006-003: Authorizing Amendment to the Participation Agreement with the Public Employees Retirement System (PERS) to Exclude the Position of Emergency Management Coordinator (Mayor) (Referred to Policies and Procedures Committee)

MOTION: Chay moved to adopt Resolution 2006-003.

President Long called for public comment with none being offered.

VOTE ON MOTION TO ADOPT:

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

No: None

Absent: None

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

(11:55:26)

Ordinance 2005-19-39: Revising the FY2006 Budget Due to Passage of Proposition 5 and Repealing and/or Reducing Previous Appropriations (Mayor) (Hearings on 01/17/06 & 02/07/06) (Referred to Finance Committee)

MOTION: Superman moved to introduce Ordinance 2005-19-39 and set for public hearings on January 17 and February 7, 2006.

VOTE ON MOTION TO INTRODUCE

AND SET FOR PUBLIC HEARING:

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

No: None

Absent: None

MOTION TO INTRODUCE AND SET

FOR PUBLIC HEARING PASSED: 9 Yes, 0 No, 0 Absent

PUBLIC COMMENTS AND PUBLIC PRESENTATIONS

(11:57:38)Fred Sturman, PO Box 513, Soldotna, AK, addressed the assembly regarding the PERS/TRS shortfall.

Joe Conners, 38050 Great Land St., Sterling, AK, addressed the assembly regarding Ordinance 2005-51(Long) Substitute.

(11:59:13)

ASSEMBLY MEETING AND HEARING ANNOUNCEMENTS

• The next meeting of the Kenai Peninsula Borough Assembly was scheduled for January 17, 2006, at 7:00 p.m. in the Assembly Chambers of the Borough Administration Building in Soldotna, Alaska.

ADJOURNMENT (11:59:56)

With no further business to come before the assembly, President Long adjourned the meeting at 11:59 p.m.

I certify the above represents accurate minutes of the Kenai Peninsula Borough Assembly meeting of January 3, 2006.

Approved by Assembly: