CALL TO ORDER

A Regular Meeting of the Kenai Peninsula Borough Assembly was held on June 6, 2006, in the Borough 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 Cameron Dockery from Birch Ridge Community Church 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 J. Williams, Mayor

            Colette Thompson, Borough Attorney

            Sherry Biggs, Borough Clerk

            Johni Blankenship, Deputy Clerk

COMMITTEE REPORTS                                                                                                              (07:02:45)

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

MOTION:                                                                  Superman moved to authorize travel for Mr. Sprague to attend the National Association of Counties (NACo) annual conference in Chicago, IL, August 4-8, 2006.

MOTION 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 item.

APPROVAL OF AGENDA AND CONSENT AGENDA                                                                                                        (07:17:43)

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 ordinance was moved to the second item of business:

•          Ordinance 2006-19: Appropriating Funds for Fiscal Year 2006-2007 (Mayor) (Referred to Finance Committee)

The following item was added to the regular agenda:

•          Resolution 2006-054: Support of the State of Alaska Stranded Gas Act Municipal Advisory Group Preliminary Positions on Provisions Of the Proposed Natural Gas Pipeline Contract with Conocophillips, Exxon and BP Exploration (Mayor) (Referred to Legislative Committee)

The following item was added to the consent agenda:

•          Ordinance 2006-28: Extending the July 1, 2006, Termination Date of Ordinance 2000-50 to Allow Continued Emergency Harvest of Spruce Bark Beetle Killed Timber (Mayor) (Shortened Hearing on 06/20/06) (Referred to Lands Committee)

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

•          May 11, 2006 Special Meeting Minutes

•          May 16, 2006 Regular Assembly Meeting Minutes

•          Resolution 2006-050: Authorizing Award of Contracts for Summer and Winter Road Maintenance in East Region, Units 1, 3, and 4, and in the West Region, Unit 3, for the Road Service Area (Mayor) (Referred to Finance Committee)

•          Resolution 2006-052: Authorizing Award of a Contract for Borough Administration Building Automatic Transfer Switch and Uninterruptible Power Supply Upgrade (Mayor) (Referred to Finance Committee)

•          Resolution 2006-053: Recognizing the Kenai Peninsula Citizen Corps Council (KPCC Council) as a Borough Program Under the Local Emergency Planning Committee (LEPC) (Mayor) (Referred to Policies and Procedures Committee)

•          Ordinance 2005-19-53: Authorizing the Purchase of Hologic/Lorad —IV Platinum Mammography System with Stereotactic Biopsy Attachment for Central Peninsula General Hospital at a Cost Not to Exceed $211,499 with Funding to Be Appropriated from the CPGH, Inc. Plant Replacement and Expansion Fund (Mayor) (Shortened Hearing on 06/20/06) (Referred to Finance Committee)

•          Ordinance 2005-19-54: Appropriating $2,500,000 for the Central Emergency Service Area to Pay the Costs of Planning, Designing, Constructing, Equipping, and Financing a Fire Station in Kasilof, Acquiring and Renovating the Fire Station in the Funny River Area, and Related Capital Improvements in the Central Emergency Service Area with Funding Provided by Issuance of $2,500,000 in Central Emergency Service Area General Obligation Bonds (Mayor) (Shortened Hearing on 06/20/06) (Referred to Finance Committee)

•          Ordinance 2006-28: Extending the July 1, 2006, Termination Date of Ordinance 2000-50 to Allow Continued Emergency Harvest of Spruce Bark Beetle Killed Timber (Mayor) (Shortened Hearing on 06/20/06) (Referred to Lands Committee)

•          Petition to Vacate That Portion of a 66-foot Section Line Easement Centered on the Line Common to Sections 35 and 36, Beginning at Anthony Avenue and Extending to the South of Walker Street, AND Vacate the 33-foot Wide Portion of Mountain Ash Street and All Adjacent Utility Easements Associated with Mountain Ash Street; Dedicated by Forest Hills Lookout Subdivision Amended (Plat KN 86-204); Within Section 35 and 36, Township 5 North, Range 10 West, Seward Meridian, Alaska; and Within the Kenai Peninsula Borough; KPB File 2006-072; Petitioners: Patrick O’Neill Owner of O’Neill Investments and Pristine Properties L.L.C. of Soldotna, AK; Location: East of Soldotna (Referred to Lands Committee)

[Clerk’s Note: The Planning Commission approved the above referenced vacation by unanimous consent at its regularly scheduled May 8, 2006 meeting.]

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

AGENDAS APPROVED AS AMENDED:              Unanimous.

COMMENDING RESOLUTIONS AND PROCLAMATIONS - None

(07:25:40)

PRESENTATIONS WITH PRIOR NOTICE

Ken Tarbox, representing the Alaska Department of Fish and Game, gave a presentation titled, “Kenai Peninsula Wildlife Viewing Trail”

Loretta Flanders, Central Peninsula General Hospital, Inc. Board President, presented the CPGH quarterly report for the reporting period of January - March, 2006.

(07:48:49)

PUBLIC COMMENTS ON ITEMS NOT APPEARING ON THE AGENDA

President Long called for public comment.

Lief Jenkinson, PO Box 982, Kasilof, addressed the Assembly regarding Slash Disposal/Fire Wise Defensible Space.

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

REPORTS OF COMMISSIONS AND COUNCILS - None

MAYOR’S REPORT                                                                                                                       (07:55:02)

            1.         Agreements and Contracts

                        a.         Spruce Bark Beetle Mitigation Program:

•Approval of 2006 Cooperative Agreement Between KPB and State of Alaska, Division of Forestry, for Hazard Tree Removal from Public Facilities

b.Approval of Sole Source Contract with Holmatro, Inc. for Extrication Tools for CES Rescue Vehicle

c.Approval of Sole Source Contract with Fire Solutions for Wildland Firefighting Foam Protection Units for CES

d.Approval of Sole Source Contract with Deep South Truck and Equipment Sales, Inc. for Purchase of a Water Tender for Kachemak Emergency Service Area

e.Approval of Sole Source with AMC Engineers for Replacement of Nikiski Pool Disinfections System

f.Approval of Bid Award to Eagle Enterprises for Purchase of Air Supply System for Anchor Point Fire Service Area

g.Approval to Waive Formal Bid Procedure and Award Contract to Full Swing Golf for Purchase of Full Swing Golf Simulator for Nikiski Community Recreation Center

h.Approval of Contract with McLane Consulting, Inc. for Surveying Services for Kachemak Emergency Service Area Fire Station Site

            2.         Other

a.Memorandum from Marcus Mueller, Land Management Officer, Regarding Deferred Auction Sale of Tax Foreclosed Property

b.Memorandum from Bill Popp, Special Assistant to the Mayor, Regarding April Unemployment Figures for Kenai Peninsula Borough

c.Memorandum from Mayor Williams to Milli Martin, in response to questions from June 5, 2006 email.

(08:02:20)

ITEMS NOT COMPLETED FROM PRIOR AGENDA

Resolution 2006-047: Authorizing the Mayor to Solicit Proposals to Broadcast Assembly Meetings via Radio (Martin) (Referred to Policies and Procedures Committee)

[Clerk’s Note: There was a motion to adopt on the floor from the May 16, 2006 meeting.]

Assembly Member Chay stated the resolution would terminate the existing contract and would allow for solicitation of a new contract.

President Long called for public comment.

The following person spoke in opposition to Resolution 2006-047:

David Anderson, PO Box 475, Anchor Point

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

Assembly Member Fischer stated he may have a conflict because he worked for a radio station. President Long stated Mr. Fischer did have a conflict and Mr. Fischer abstained from voting on Resolution 2006-047.

MOTION:                                                                  Sprague moved to overrule the chair.

Assembly Member Merkes spoke in support of the motion.

Assembly Member Germano spoke in opposition to the motion.

VOTE ON MOTION TO OVERRULE THE CHAIR:

Yes:                                                                            Gilman, Merkes, Sprague, Superman

No:                                                                              Chay, Germano, Martin, Long

Abstained:                                                                  Fischer

MOTION TO OVERRULE THE CHAIR FAILED: 4 Yes, 4 No, 1 Abstention

Assembly Members Germano, Merkes and Martin spoke in opposition to Resolution 2006-047.

President Long passed the gavel to Vice President Sprague and spoke in opposition to Resolution 2006-047. Vice President Sprague returned the gavel to President Long.

VOTE ON MOTION:

Yes:                                                                            None

No:                                                                              Chay, Germano, Gilman, Martin, Merkes, Sprague, Superman, Long

Abstained:                                                                  Fischer

MOTION FAILED:                                                   0 Yes, 8 No, 1 Abstention

(08:19:25)

Ordinance 2006-19: Appropriating Funds for Fiscal Year 2006-2007 (Mayor) (Referred to Finance Committee)

[Clerk’s Note: There was a motion to enact on the floor from the May 2, 2006 meeting.]

Mayor Williams gave a brief report summarizing changes in the FY2007 budget.

President Long called for public comment.

The following people spoke in support of an increase to the KPTMC funding in Ordinance 2006-19:

Shannon Hamrick, KPTMC Executive Director, 503 Lilly Drive, Soldotna

Steve Anderson, 399 Lovers Lane, Soldotna

Karen Fuller, 48454 Island Lake Road, Nikiski

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

MOTION TO AMEND:                                             Sprague moved to amend the proposed FY07 budget as follows:

Page 91 Non Departmental, increase Account No.100.94910.43021, “Peninsula Promotions”, by $67,500 for a total of $217,500.

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

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

Assembly Member Germano spoke in opposition to the motion to amend.

MOTION TO AMEND: (Secondary)                        Germano moved to amend the proposed FY07 budget as follows:

Page 91 Non Departmental, increase Account No.100.94910.43021, “Peninsula Promotions”, by $30,000 for a total of $180,000.

Assembly Members Fischer and Gilman spoke in support of the secondary amendment.

VOTE ON SECONDARY AMENDMENT:

Yes:                                                                            Chay, Germano, Gilman, Long

No:                                                                              Fischer, Martin, Merkes, Sprague, Superman

Absent:                                                                       None

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

VOTE ON MAIN MOTION TO AMEND: 

Yes:                                                                            Sprague, Long

No:                                                                              Chay, Fischer, Germano, Gilman, Martin, Merkes, Superman

Absent:                                                                       None

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

MOTION TO AMEND:                                             Superman moved to amend the proposed FY07 budget as follows:

Page 245 South Hospital Service Area, increase Account No. 601.81210.50300, “SPH-Debt Service Bonds”, by $450,738 for a total of $1,256,401.

Page 251 Debt Service Funds, increase Account No. 361.81210.44010, “SPH Debt Service 2004 Issue”, by $450,738 for a total of $1,256,401.

And Amend Ordinance 2006-19 as follows:

Section 4 South Peninsula Hospital to read, “[$1,924,911] $2,375,649"

Section 9 to read, “That $[805,663]1,256,401 is appropriated in the South Kenai Peninsula Hospital Service Area Debt Service Fund for the fiscal year beginning July 1, 2006 and ending June 30, 2007.”

MOTION TO AMEND PASSED:                             Unanimous.

MOTION TO AMEND:                                             Superman moved to amend the proposed FY07 budget as follows:

Page 31, Assembly Clerk, decrease the department total by $15,900 as follows:

Account No. 100.111120.40110 by $8,551, “Regular Wages”, Account No. 100.11120.40130, “Overtime Wages”, by $640, Account No. 100.11120.40210, “FICA” by $990, Account No. 100.11120.40221, “PERS” by $2,178, Account No. 100.11120.40322, “Life Insurance”, by $20, Account No. 100.11120.40410, “Leave”, by $2,298, and Account No. 100.11120.40411, “Sick Leave”, by $1,223, for a new department total of $413,949.

MOTION TO AMEND PASSED:                             Unanimous.

MOTION TO AMEND:                                             Superman moved to amend the proposed FY07 budget as follows:

Page 45 Emergency Management - Administration, decrease Account No. 100.11250.40321, “Health Insurance”, by $11,500 for a total of 19,617.

And Amend Ordinance 2006-19 as follows:

Section 1 to read, “That $[58,766,133]58,738,733 is appropriated in the General Fund for the fiscal year beginning July 1, 2006 and ending June 30, 2007 as follows:

General Government Operations $[12,914,870]12,882,220; Transfer to School District for Operations and In-kind Services 36,761,137 ”

MOTION TO AMEND PASSED:                             Unanimous.

MOTION TO AMEND:                                             Superman moved to amend the proposed FY07 budget as follows:

Page 129 Central Emergency Services, increase department total by $99,476 as follows:

Account No. 211.51610.42120, “Computer Software” by $2,000, Account No. 211.51610.42210, “Operating Supplies”, by $1,000, Account No. 211.51610.43110, “Communications”, by $4,150, Account No. 211.51610.43510, “Insurance Premium”, by $10,000, Account No. 211.51610.43610, “Utilities”, by $22,968, Account No. 211.51610.43720, “Equipment Maintenance”, by $550, Account No. 211.51610.43780, “Building and Ground Maintenance”, by $17,808, Account No. 211.51610.48710, “Minor Office Equipment”, by $21,000, and Account No. 211.51610.48720 by $20,000, for a new department total of $5,330,005.

And Amend Ordinance 2006-19 as follows:

Section 4 (Central Emergency Services) to read, “Central Emergency Service Area$[5,230,529]5,330,005”

MOTION TO AMEND PASSED:                             Unanimous.

MOTION TO AMEND:                                             Superman moved to amend the proposed FY07 budget as follows:

Page 83 Resource Planning Administration decrease department by $84,787 as follows:

Account No. 100.21110.40110, “Regular Wages”, by $50,142, Account No. 100.21110.40210, “FICA”, by $4,498, Account No. 100.21110.40221, “PERS”, by $11,902, Account No. 100.21110.40321, “Health Insurance”, by $11,500, Account No. 100.21110.40322, “Life Insurance” by $128, Account No. 100.21110.40410, “Leave”, by $5,090, and Account No. 100.21110.40411, “Sick Leave”, by $1,527, for a new department total of $1,041,269.

Page 39 Mayor Administration, increase department by $84,787 as follows:

Account No. 100.11210.40110, “Regular Wages”, by $50,142, Account No. 100.11210.40210, “FICA”, by $4,498, Account No. 100.11210.40221, “PERS”, by $11,902, Account No. 100.11210.40321, “Health Insurance”, by $11,500, Account No. 100.11210.40322, “Life Insurance” by $128, Account No. 100.11210.40410, “Leave”, by $5,090, and Account No. 100.11210.40411, “Sick Leave”, by $1,527, for a new department total of $636,132.

MOTION TO AMEND PASSED:                             Unanimous.

MOTION TO AMEND:                                             Superman moved to amend the proposed FY07 budget as follows:

Page 83 Resource Planning Administration, increase by $73,905 as follows:

Account No. 100.21110.40110, “Regular Wages”, by $42,749, Account No. 100.21110.40130, “Overtime Wages”, by $545, Account No. 100.21110.40210, “FICA”, by $3,819, Account No. 100.21110.40221, “PERS”, by $10,265, Account No. 100.21110.40321, “Health Insurance”, by $11,500, Account No. 100.21110.40322, “Life Insurance” by $111, Account No. 100.21110.40410, “Leave”, by $4,275, and Account No. 100.21110.40411, “Sick Leave”, by $641, for a new department total of $1,115,174.

Page 57 General Services - GIS, decrease department by $73,905 as follows:

                                                                                    Account No. 100.11232.40110,“Regular Wages”, by $42,749, Account No. 100.11232.40130, “Overtime Wages”, by $545, Account No. 100.11232.40210, “FICA”, by $3,819, Account No. 100.11232.40221, “PERS”, by $10,265, Account No. 100.11232.40321, “Health Insurance”, by $11,500, Account No. 100.11232.40322, “Life Insurance” by $111, Account No. 100.11232.40410, “Leave”, by $4,275, and Account No. 100.11232.40411, “Sick Leave”, by $641, for a new department total of $402,615.

MOTION TO AMEND:                                             Superman moved to amend Ordinance 2006-19 as follows:

3^rd whereas to read, “Resolution 2006-025 approved a total school budget of $ 112,315,918 and established that up to $36,761,137 ($28,881,714 local effort and $7,879,423 in-kind services) be provided from local sources for school purposes; and”

MOTION TO AMEND PASSED:                             Unanimous.

MOTION TO AMEND:                                             Superman moved to amend Ordinance 2006-19 as follows:

Section 2 to read, “The following is appropriated to the school fund from local sources for operations purposes and in-kind services:

A. Local Effort$28,881,714

B. Maintenance5,684,563

C. School District Utilities55,430

D. School District Insurance2,011,056

E. School District Audit26,500

F. Custodial Services101,874

Total Local Contribution per

AS 14.17.410$36,761,137”

MOTION TO AMEND PASSED:                             Unanimous.

MOTION TO AMEND:                                             Superman moved to amend Ordinance 2006-19 as follows:

Section 4 (Kenai Peninsula Borough Road Service Area) to read, “Kenai Peninsula Borough Road Service Area 4,740,2[6]88”

MOTION TO AMEND PASSED:                             Unanimous.

MOTION TO AMEND:                                             Fischer moved to amend the proposed FY07 budget as follows:

Page 89 Senior Citizens Grant Program increase department by ten percent as follows:

Account No. 100.62110, “Anchor Point Seniors”, by $2,132, Account No. 100.62115, “Cooper Landing Seniors”, by $1,236, Account No. 100.62120 “Homer Seniors”, by $7,188, Account No. 100.62130, Kenai Seniors”, by $9,532, Account No. 100.62140, “Ninilchik”, by $2,116, Account No. 100.62150 “Seward Seniors”, by 3,280, Account No. 100.62160, “Seldovia Seniors”, by $772, Account No. 100.62170, “Soldotna Seniors”, by $7,364, Account No. 100.62180, “Sterling Seniors”, by $3,360, Account No. 100.62125, “Friendship Center-Homer”, by $815, and Account No. 100.62195, “Forget-Me-Not Care Center”, by $2,037, for a new department total of $438,154.

Assembly Member Fischer asked President Long to rule if he had a conflict of interest as he was on the Soldotna Senior Center Board of Directors. President Long ruled Assembly Member Fischer did have a conflict and the motion was withdrawn.

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:                   9 Yes, 0 No, 0 Absent

(09:29:34)

Resolution 2006-049: Setting the Rate of Levy for Real and Personal Property Taxes for the Kenai Peninsula Borough and for Service Areas Within the Borough for Tax Year 2006, Which Will Be Used to Fund Fiscal Year 2007 (Mayor) (Referred to Finance Committee)

MOTION:                                                                  Superman moved to adopt Resolution 2006-049.

Assembly Member Superman stated the resolution would the set the rate of levy for fiscal year 2007.

President Long called for public comment.

The following person spoke in opposition to Resolution 2006-049 as written:

Chief Fred Swen, Nikiski Fire Service Area, Nikiski

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

MOTION TO AMEND:                                             Superman moved to amend Resolution 2006-049 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 2006 is hereby set at [2.80] 3.00 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 Member Superman spoke in support of the amendment.

MOTION TO AMEND PASSED:                             Unanimous.

MOTION TO AMEND:                                             Superman moved to amend Resolution 2006-049 as follows:

Section 1 to read, “That the rate of levy of taxes on all real and personal property within the Kenai Peninsula Borough for the tax year 2006 is hereby set at [6.70] 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”

MOTION TO AMEND PASSED:                             Unanimous.

VOTE ON MOTION TO ADOPT AS AMENDED:

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

No:                                                                              None

Absent:                                                                       None

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

(10:04:00)

PUBLIC HEARINGS ON ORDINANCES

Ordinance 2005-19-50: Appropriating $885,868 to the Fiscal Year 2006 Road Service Area Capital Improvement Projects (Mayor) (Referred to Finance Committee)

MOTION:                                                                  Superman moved to enact Ordinance 2005-19-50.

Assembly Member Superman stated the ordinance would fund improvements on specified borough roads.

President Long called for public comment with none being offered.

MOTION TO AMEND:Superman moved to amend Ordinance 2005-19-50 as follows:

5^th whereas to read, “the “Group A” and “Group B” projects are:

GROUP A

                                                                                    1.         Jim Dahler Road and Arrowhead Avenue (Sterling)

                                                                                    2.         Yukon Street and Saber Avenue (Homer)

                                                                                    3.         [Hutler Road (Homer)]

                                                                                    [4.]      Grouse Creek Bridge (Seward)

                                                                                    [5]4.    LaCross Way (Soldotna)

                                                                                    [6]5.    Brewer Road, Mallette Avenue, and Auburn Court (Kasilof)

GROUP B

                                                                                    1.         Hutler Road (Homer) [Rounds Road, Charlie’s Way, and Koehler Avenue (North Kenai)

                                                                             2.        Thunder Road and Galankin Street (North Kenai)

                                                                             3.        Charlie’s Way and Karen Avenue (North Kenai)

                                                                             4.        Foster Avenue, Walker Street, and Lopez Avenue (Sterling)

                                                                             5.        Juel Avenue, Kenaitze Avenue, and Nielson Street (Kasilof)

                                                                             6.        Raven Lane and Eagle Lane (Seward)

                                                                             7.        Palmer Street and Crossman Ridge

                                                                             8.        Ron’s Avenue, Eddie’s Way, Jasper Lane, and Lynn Court (Nikiski)

                                                                             9.        Moat Way, Excalibur Way, and Camelot Drive (Seward)

10.Fairway Avenue (Kasilof)

                                                                             11.      Spruce Creek Bridge (Lowell Point, Seward)

12.Kasilof River Road (Kasilof)]

MOTION TO AMEND PASSED:                             Unanimous.

MOTION TO AMEND:                                             Superman moved to amend Ordinance 2005-19-50 as follows:

Section 1 to read, “That funds in the amount of [$855,868] $885,868 are appropriated to the road service area capital projects fund 434.33950.00000.49999.”

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

(10:10:38)

Ordinance 2005-19-51: Appropriating $190,269.42 to the Special Assessment Fund for Chinulna Point Subdivision Road Improvement Special Assessment District (Mayor) (Referred to Finance Committee)

MOTION:                                                                  Superman moved to enact Ordinance 2005-19-51.

Assembly Member Superman stated the ordinance would appropriate funds for the Chinulna Point Road Improvement Assessment District and that fifty percent of the funds would come from the Road Service Area matching fund.

President Long called for public comment with none being offered.

MOTION TO AMEND:                                             Superman moved to amend Ordinance 2005-19-51 as follows:

3^rd whereas to read, “the assembly is scheduled to adopt Resolution 2006-044 on June 6, 2006, to form the Chinulna Point Subdivision Road Improvement Assessment District and proceed with the improvement; 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

(10:13:15)

Ordinance 2006-22: Authorizing the Kenai Peninsula Borough to Execute and Deliver an Equipment Lease Purchase Agreement in an Aggregate Principal Amount Not to Exceed $2,000,000 to Pay the Cost of Acquiring and Installing a CT Scanner and a Picture Archiving Communication System for the South Peninsula Hospital, and Providing for Related Matters (Mayor) (Referred to Finance Committee)

MOTION:                                                                  Superman moved to enact Ordinance 2006-22.

Assembly Member Superman stated the ordinance would appropriate funds and authorize the purchase of a new CT Scanner to replace the antiquated version currently in service at South Peninsula Hospital.

President Long called for public comment with none being offered.

MOTION TO AMEND:                                             Superman moved to amend Ordinance 2006-22 as follows:

3^rd whereas to read, “GE Healthcare submitted [THE LOWEST] a bid to provide a CT scanner, and SPH, Inc. also concluded that the GE CT Scanner was its first choice based on

the quality of the equipment, the integration with other information systems at SPH, and the efficiency of common maintenance support; and”

MOTION TO AMEND PASSED:                             Unanimous.

MOTION TO AMEND:                                             Superman moved to amend Ordinance 2006-22 as follows:

5^th whereas to read, “SPH, Inc. has recommended that the Kenai Peninsula Borough (the “Borough”) purchase a new CT scanner from GE Healthcare to replace the existing CT scanner at SPH; and”

MOTION TO AMEND PASSED:                             Unanimous.

MOTION TO AMEND:                                             Superman moved to amend Ordinance 2006-22 as follows:

8^th whereas to read, “SPH, Inc. has recommended that the Borough purchase a new PACS from McKesson to manage the digital images produced by the CT scanner and other imaging equipment; and”

MOTION TO AMEND PASSED:                             Unanimous.

MOTION TO AMEND:                                             Superman moved to amend Ordinance 2006-22 as follows:

15^th whereas to read, “the Borough has solicited and received proposals to provide lease purchase financing for the Project, and has determined that Suntrust Leasing Corporation (the “Lessor”) has submitted the financing proposal that will result in the lowest true interest cost to the Borough; and”

MOTION TO AMEND PASSED:                             Unanimous.

MOTION TO AMEND:                                             Superman moved to amend Ordinance 2006-22 as follows:

Section 2 to read, “The Mayor or his designee is authorized to enter into contracts with GE Healthcare and McKesson for the purchase and installation of a new CT scanner and PACS at SPH for a capital cost not to exceed $2,000,000.”

MOTION TO AMEND PASSED:                             Unanimous.

Assembly Member Germano spoke in support of Ordinance 2006-22.

MOTION:                                                                  Sprague moved to postpone Ordinance 2006-022 until the June 20, 2006 meeting.

Assembly Member Merkes spoke in opposition to postponement.

VOTE ON MOTION TO POSTPONE:

Yes:                                                                            Fischer, Sprague

No:                                                                              Chay, Germano, Gilman, Martin, Merkes, Superman, Long

Absent:                                                                       None

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

Assembly Members Merkes, Superman and Gilman spoke in support of Ordinance 2006-22.

President Long passed the gavel to Vice President Sprague and spoke in support of Ordinance 2006-22. Vice President Sprague returned the gavel to President Long.

Vice President Sprague spoke in opposition to Ordinance 2006-22.

VOTE ON MOTION TO ENACT AS AMENDED:

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

No:                                                                              Chay, Fischer, Sprague

Absent:                                                                       None

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

(10:55:11)

UNFINISHED BUSINESS (Notice to Reconsider)

Ordinance 2005-19-47: Appropriating $1,000,000 From the Borough’s General Fund Balance to Reimburse the CES Capital Project Fund for its Contribution for Construction of an Emergency Response Center (Mayor) (Reconsideration Given by Ms. Merkes)

[Clerk’s Note: Notice of Reconsideration was given by Assembly Member Merkes on May 16, 2006.]

Ordinance 2005-19-47 (Mayor) Substitute: Appropriating $1,000,000 From the Borough’s General Fund Balance to Reimburse the CES Capital Project Fund for its Contribution for Construction of an Emergency Response Center (Mayor)

MOTION:                                                                  Merkes moved to reconsider Ordinance 2005-19-47.

VOTE ON MOTION TO RECONSIDER:

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

No:                                                                              Fischer, Gilman, Superman

Absent:                                                                       None

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

MOTION TO AMEND:                                             Merkes moved to amend Ordinance 2005-19-47 by substitution.

MOTION TO AMEND BY

SUBSTITUTION PASSED:                                      Unanimous.

President Long called for public comment.

The following person spoke in support of Ordinance 2005-19-47 (Mayor’s) Substitute:

Chief Chris Mokracek, Central Emergency Service Area, Soldotna

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

Assembly Members Merkes and Martin spoke in support of Ordinance 2005-19-47 (Mayor’s) Substitute.

Assembly Members Superman, Sprague, Fischer and Gilman spoke in opposition to Ordinance 2005-19-47 (Mayor’s) Substitute.

President Long passed the gavel to Vice President Sprague.

MOTION TO AMEND:                                             Long moved to amend Ordinance 2005-19-47 (Mayor’s) Substitute as follows:

Title to read, “An Ordinance Appropriating $[1,000,000]250,000 from the Borough’s General Fund Balance to Reimburse the CES Capital Project Fund for its Contribution for Construction of an Emergency Response Center”

Delete the 7^th whereas in its entirety, “[IN ORDER TO MINIMIZE THE IMPACT OF THIS ACTION UPON THE GENERAL FUND, REPAYMENTS COULD BE MADE IN FOUR EQUAL INSTALLMENTS OF $250,000 PER FISCAL YEAR; AND]”

Delete Section 2 in its entirety, “[THAT THE ASSEMBLY HEREBY STATES ITS INTENTION TO ALSO APPROPRIATE $250,000 IN THE FISCAL YEAR 2007, 2008, AND 2009 BUDGETS FROM THE BOROUGH GENERAL FUND ACCOUNT 100.00000.00000.27910 TO ACCOUNT 100.94910.0000.50443 FOR TRANSFER TO THE CES CAPITAL PROJECT FUND AS FULL REIMBURSEMENT TO CES OF ITS CONTRIBUTION TO THE ABOVE-DESCRIBED FACILITY]”

Renumber the remaining section.

Assembly Member Superman spoke in opposition to the amendment.

Vice President Sprague passed the gavel to President Pro Tem Superman and spoke in opposition to the amendment. President Pro Tem Superman returned the gavel to Vice President Sprague.

VOTE ON MOTION TO AMEND:

Yes:                                                                            Germano, Martin, Merkes, Long

No:                                                                              Chay, Fischer, Gilman, Sprague, Superman

Absent:                                                                       None

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

Vice President Sprague returned the gavel to President Long.

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

MOTION PASSED:                                                   Unanimous.

Assembly Member Merkes spoke in support of Ordinance 2005-19-47 (Mayor’s) Substitute.

VOTE ON MOTION TO ENACT SUBSTITUTE:

Yes:                                                                            Chay, Germano, Martin, Merkes, Long

No:                                                                              Fischer, Gilman, Sprague, Superman

Absent:                                                                       None

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

(11:27:33)

NEW BUSINESS (Bid Awards)

Resolution 2006-051: Authorizing Capital Improvement Project Cost Allocation and Award of Contracts for the Grouse Creek Bridge Rehabilitation and Four Group A Road Capital Improvement Projects (Mayor) (Referred to Finance Committee)

MOTION:                                                                  Superman moved to adopt Resolution 2006-051.

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

(11:29:12)

NEW BUSINESS (Resolutions)

Resolution 2006-044: To Form the Chinulna Point Subdivision Road Improvement Assessment District and Proceed with the Improvement (Mayor) (Referred to Finance Committee)

MOTION:                                                                  Superman moved to adopt Resolution 2006-044.

Assembly Member Superman stated the resolution was a companion to Ordinance 2005-19-51.

President Long opened the public comment period, 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

(11:30:45)Resolution 2006-054: Support of the State of Alaska Stranded Gas Act Municipal Advisory Group Preliminary Positions on Provisions Of the Proposed Natural Gas Pipeline Contract with Conocophillips, Exxon and BP Exploration (Mayor) (Referred to Legislative Committee)

MOTION:                                                                  Sprague moved to adopt Resolution 2006-054.

MOTION:                                                                  Germano moved to postpone Resolution 2006-054 until the June 20, 2006 meeting.

Assembly Member Merkes spoke in opposition to postponement.

Assembly Members Germano and Fischer spoke in support of postponement.

VOTE ON MOTION TO POSTPONE:

Yes:                                                                            Fischer, Germano

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

Absent:                                                                       None

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

Assembly Members Sprague, Germano and Chay spoke in support of Resolution 2006-054.

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

PUBLIC COMMENTS AND PUBLIC PRESENTATIONS - None

ASSEMBLY MEETING AND HEARING ANNOUNCEMENTS

•          The next regular meeting of the Kenai Peninsula Borough Assembly was scheduled for June 20, 2006, at 7:00 p.m. in the Borough Assembly Chambers at the Borough Administration Building, Soldotna, Alaska.

(11:41:16)

ASSEMBLY COMMENTS

Assembly Member Martin requested the administration and the Clerk’s office alert the public via a media release, regarding laydown resolution and ordinances. She thanked the Administration for a smooth budget process. She also commented on a letter she received from the Alliance of Concerned Taxpayers (ACT).

Assembly Member Gilman commended the Mayor and the Administration on the FY 2007 budget and their efforts to fully fund education. She asked the Administration and her fellow Assembly Members to keep in mind the increasing cost of health care, when setting the Federal and State Legislative Priorities. She requested to be excused from the June 20, 2006 meeting.

Assembly Member Superman also thanked the administration for a smooth budget cycle, stating it was the easiest budget process he had ever been through in his experience on the Assembly.

Assembly Member Germano thanked the administration on their work in preparing the budget.

President Long thanked the administration and his fellow assembly members for a painless budget process and in particular, he thanked Finance Director Craig Chapman.

(11:52:13)

ADJOURNMENT

With no further business to come before the assembly, President Long adjourned the meeting at 11:52 p.m.

I certify the above represents accurate minutes of the Kenai Peninsula Borough Assembly meeting of June 6, 2006.

Sherry Biggs, Borough Clerk

Approved by Assembly: