CALL TO ORDER

A Special Meeting of the Kenai Peninsula Borough Assembly was held on May 11, 2006, in the Borough Assembly Chambers, Soldotna, Alaska. President Pro Tem Superman called the meeting to order at 4:00 p.m.

PLEDGE OF ALLEGIANCE

The pledge of Allegiance was recited.

ROLL CALL

There were present:

             Ron Long, Presiding (arrived at 4:11 p.m.)

             Paul Fischer

            Deb Germano (via teleconference)

            Margaret Gilman

            Milli Martin

            Grace Merkes

            Gary Superman

comprising a quorum of the assembly.

Absent:

            Dan Chay (excused)

            Pete Sprague (excused)

Also in attendance were:

            John J. Williams, Mayor

            Colette Thompson, Borough Attorney

            Sherry Biggs, Borough Clerk

            Johni Blankenship, Deputy Clerk

APPROVAL OF AGENDA

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

The following item was added to the agenda:

•          Add New Item E2. GENERAL DISCUSSION

AGENDA APPROVED AS AMENDED:                 Unanimous.

(04:21:28)

NEW BUSINESS

Possible Request for Executive Session: “To review and discuss materials regarding the proposed acquisition of the assets of Heritage Place. The materials are expected to include proprietary and confidential information and matters of which immediate knowledge would clearly have an adverse effect upon the finances of the borough.”

MOTION:                                                                  Merkes moved to adjourn into executive session to review and discuss materials regarding the proposed acquisition of the assets of Heritage Place. The materials were expected to include proprietary and confidential information and matters of which immediate knowledge would clearly have an adverse effect upon finances of the borough.

Parties included in the executive session were: Assembly Members, Borough Attorney, Borough Clerk, Central Peninsula General Hospital Service Area Board Members, Dennis Murray from Heritage Place representing Banner Health, Central Peninsula Hospital Inc. CEO Ryan Smith, Borough Finance Director and a representative of the Borough Administration.

MOTION PASSED:                                                   Unanimous.

[Clerk’s Note: The Assembly recessed into executive session at 4:25 p.m. and reconvened at 6:04 p.m.]

President Pro Tem Superman presented the gavel to President Long.

MOTION:                                                                  Martin moved to reconvene from executive session.

MOTION PASSED:                                                   Unanimous.

GENERAL DISCUSSION

[Clerk’s Note: The Legal Department presented a draft of the Heritage Place Asset Purchase Agreement.]

Assembly Member Merkes asked what would be included in the assets of the facility. Mr. Murray presented an asset list and gave a brief overview.

Assembly Member Martin asked if an independent review of the facility, the value of the facility and the financial aspects with projections for the future had been done. Mr. Navarre stated the KPB Maintenance Department, along with members of the administration had done an on-site review of the facility and he distributed their findings. Mr. Murray stated he had provided a review from the State Fire Marshall to the Borough Attorney.

Assembly Member Superman asked what, if any, additional liabilities would be incurred by Central Peninsula General Hospital. Mr. Smith stated Banner had agreed to reimburse CPGH for balances in the employee’s paid time off (PTO) bank.

PUBLIC COMMENTS (3 minutes per speaker)

President Long called for public comment.

The following people addressed the assembly regarding the acquisition of Heritage Place:

Preston Williams, 2565 Watergate Way, Kenai

Neal DuPerron, 470 W. Katmai, Kenai

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

ADJOURNMENT

With no further business to come before the assembly, President Long adjourned the special meeting at 6:36 p.m.

I certify the above represents accurate minutes of the Kenai Peninsula Borough Assembly meeting of May 11, 2006.