Assembly Meeting Minutes

May 6, 2003-7:00 p.m. Regular Meeting - Seward, Alaska CALL TO ORDER A Regular Meeting of the Assembly was held on May 6, 2003, in the Council Chambers, City Hall, Seward, Alaska. President Sprague 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 Terry Doane, Seward Assembly of God. There were present: Pete Sprague, Presiding John Davis (excused at 8:25 p.m.) Betty Glick Ron Long Milli Martin Grace Merkes Chris Moss Gary Superman comprising a quorum of the assembly. Paul Fischer (excused) [Note: Mr. Fischer had requested attendance via teleconference; however, technical difficulties made this impossible.] Also in attendance were: Dale Bagley, Borough Mayor Colette Thompson, Borough Attorney Linda Murphy, Borough Clerk Sherry Biggs, Deputy Borough Clerk COMMITTEE REPORTS Assembly Member Glick reported the Policies and Procedures Committee met and discussed its agenda items. Assembly Member Martin said the Lands Committee addressed its brief agenda. Assembly Member Moss reported the Finance Committee met and addressed its lengthy agenda. May 6, 2003 Vol. 43, Page 73

Assembly Member Long said the Legislative Committee met and discussed its brief agenda. Mr. Long noted for the record he had a conflict of interest regarding Resolution 2003-055 and the Legislative Committee was then chaired by Vice Chairman Sprague. MOTION: MOTION PASSED: Moss moved to authorize the assembly president to send a letter to the Alaska Travel Industry Association requesting the Kenai Peninsula Borough be designated as a separate destination point. Unanimous without objection. APPROVAL OF AGENDA AND CONSENT AGENDA MOTION TO APPROVE AGENDAS: Merkes moved for approval of the agenda and consent agenda. President Sprague called for additions, corrections or deletions to the agenda or consent agenda. The following items were withdrawn at the request of the sponsor: Resolution 2003-052: Authorizing an Amendment to the Radio Broadcasting Agreement with Peninsula Communications, Inc. Providing for Broadcast via Cable to the Seward Area (Glick) (Referred to Policies and Procedures Committee) Resolution 2003-054: Supporting House Joint Resolution 3, Proposing Amendments to the Constitution of the State of Alaska Relating to the Alaska Permanent Fund (Glick) (Referred to Legislative Committee) The following item was moved from the consent agenda to the regular agenda: Resolution 2003-056: Supporting the Chugach National Forest Seward Ranger District Recreational Development Plan (Mayor) (Referred to Lands Committee) Copies having been made available to the public, Borough Clerk Linda Murphy noted by title only the resolutions and ordinances on the consent agenda. April 15, 2003 regular assembly meeting minutes Resolution 2003-045: Authorizing Award of a Contract for Professional Services for the Bean Creek, KPB Subdivision and Access Roads Project, Cooper Landing, Alaska (Mayor) (Referred to Finance Committee) Resolution 2003-046: Authorizing Award of a Contract for Construction Services for Kenai Middle School Fire System Project (Mayor) (Referred to Finance Committee) Vol. 43, Page 74 May 6, 2003

Resolution 2003-047: Authorizing Award of a Contract for Construction Services for the Nikolaevsk School Entry Canopy (Mayor) (Referred to Finance Committee) Resolution 2003-048: Authorizing Award of a Contract for Construction Services for the Sears Elementary School Fire Alarm System Project (Mayor) (Referred to Finance Committee) Resolution 2003-049: Determining the Amount to be Provided from Local Sources for School Purposes During Fiscal Year 2003-2004 (Mayor) (Referred to Finance Committee) Resolution 2003-050: Authorizing Application for Public Assistance from the State of Alaska Department of Military and Veterans Affairs, Division of Emergency Services, for the 2002 Flooding and Winter Storm Disaster (Mayor) (Referred to Finance Committee) Resolution 2003-051: Approving a Contract for General Broker Services (Mayor) (Referred to Finance Committee) [Clerk s Note: Technical amendments were made to Resolution 2003-051 to reflect Willis of Alaska, Inc. as the successful bidder for the contract to provide general broker services.] Resolution 2003-053: Authorizing the Acceptance of Late-Filed Senior Citizen and Disabled Veteran Exemption Applications (Mayor) (Referred to Policies and Procedures Committee) Resolution 2003-055: Seeking Alternative State Funding for the Shellfish Hatchery to Replace Funding Formerly Provided Through the Alaska Science and Technology Foundation (Glick) (Referred to Legislative Committee) [Clerk s Note: Technical amendments were made to Resolution 2003-055 as follows: Fourth Whereas to read,...high-value shellfish seed for the mariculture industry which promotes statewide development of Alaska s natural resources; and Fifth Whereas to read, the loss of State funding, at a time when the shellfish hatchery is beginning to demonstrate its commercial viability, will jeopardize the hatchery... New Section 2 to read, That copies of this resolution shall be sent to Governor Murkowski, Senator Con Bunde, Senator Georgiana Lincoln, Senator Gary Stevens, Senator Tom Wagoner, Representative Mike Chenault, Representative Mike Hawker, Representative Carl Morgan, Representative Paul Seaton, Representative Kelly Wolf and Alaska Department of Fish and Game Commissioner Kevin Duffy. And the remaining section to be renumbered accordingly.] Ordinance 2002-19-39: Appropriating $300,000 in Road Service Area Funds for the Edgington Road Improvement Project (Mayor) (Shortened Hearing on 05/20/03) (Referred to Finance Committee) Ordinance 2002-19-40: Accepting and Appropriating $38,800 from the U.S. Department of Interior, U.S. Fish and Wildlife Service, for a Challenge Cost Share Agreement to Complete May 6, 2003 Vol. 43, Page 75

a Fuel Model Map for the Kenai National Wildlife Refuge (Mayor) (Hearing on 06/03/03) (Referred to Finance Committee) Ordinance 2003-16: Amending KPB 14.40.060(B) Regarding Mandatory Conditions on All Right-of-Way Permits (Mayor at the Request of the Road Service Area Board) (Hearing on 06/03/03) (Referred to Lands Committee) Ordinance 2003-19: Appropriating Funds for Fiscal Year 2003-2004 (Mayor) (Hearings on 05/20/03 & 06/03/03) (Referred to Finance Committee) Proposition Summary - South Peninsula Hospital Bond Special Election (Referred to Policies and Procedures Committee) [Clerk s Note: A technical amendment was made to the proposition summary as follows: Final sentence to read, However, no tax increase is anticipated at this time as the current 1.75 mill levy is adequate to cover these costs. ] Mayor s Report on the Seward - Bear Creek Flood Service Area Proposal (Mayor) (Referred to Lands Committee) MOTION: MOTION PASSED: Martin moved to set a public hearing for the proposed Seward - Bear Creek Flood Service Area for June 16, 2003, at 6:00 p.m. at Seward City Hall with Assembly Members Long, Glick, Martin, Davis, and Sprague to serve as committee members. Unanimous without objection. Application for New Liquor License (Referred to Finance Committee) Alaska Wildland Adventures d.b.a. Kenai Riverside Lodge Cooper Landing, Alaska Application for Restaurant Designation Permit (Referred to Finance Committee) Alaska Wildland Adventures d.b.a. Kenai Riverside Lodge Cooper Landing, Alaska President Sprague called for public comment. Bob Valdetta, 520 Fifth Avenue, Seward, AK, asked that Sawmill Creek be included in the Proposed Seward - Bear Creek Flood Service Area. Peter Simon, 12204 Nautical Avenue, Seward, AK, spoke in favor of the Proposed Seward - Bear Creek Flood Service Area. There being no one else who wished to speak, President Sprague closed the public comment period. Vol. 43, Page 76 May 6, 2003

Assembly Member Long declared he had a conflict of interest regarding Resolution 2003-055 and would not be voting on that particular item on the consent agenda. President Sprague ruled a conflict did exist with no objection from the assembly members. AGENDAS APPROVED AS AMENDED: Unanimous without objection. COMMENDING RESOLUTIONS AND PROCLAMATIONS Mayor Bagley presented a proclamation to Sue Lange, Commodore Gary Taylor, and Rear Commodore Mae Leighton declaring May 17-23, 2003, as National Safe Boating Week. Mayor Bagley declared the month of May 2003 as Motorcycle Awareness Month and presented the proclamation to Carl Glick of the Gold Wing Riders. PUBLIC COMMENTS AND PRESENTATIONS Rhonda Anderson-Hubbard, 1800 Jessie Lee Drive, Seward, AK, spoke on behalf of the Seward Education Foundation and their goal to empower the community and embrace local education efforts. Finance Director Jeffrey Sinz, presented the Fiscal Year 2003-2004 proposed budget. [Clerk s Note: Assembly Member Davis was excused at 8:25 p.m.] Lynn Hohl, 2415 Cedar Street, Seward, AK, presented a resolution from the Seward Parent Teachers Association supporting the Alaska Vocational Technical Center (AVTEC). REPORTS OF COMMISSIONS AND COUNCILS -. MAYOR S REPORT Agreements and Contracts a. Spruce Bark Beetle Mitigation Program: Notice of Award to Gates Construction, Inc. for Beaver Creek Sale Notice of Award to Paul s Services for Belnap Sale Notice of Award to Gates Construction, Inc. for Dusty Sale Notice of Award to Covey & Sons, Inc. for Greer Sale Notice of Award to Paul s Services for Rascal Sale Contract with Doug Koch for Bidarki Right of Way Project Contract with Doug Koch for DaMar Loop Right of Way Project Contract with Doug Koch for Diamond Ridge Right of Way Project Contract with Doug Koch for Heather-Knott Right of Way Project Contract with Kenai Peninsula Stump Maker for Martha Lane Right of Way Project May 6, 2003 Vol. 43, Page 77

Contract with Kenai Peninsula Stump Maker for Vio Lane Right of Way Project Contract with Mullikin Surveys for Sanford Drive Surveying Project Contract with Mullikin Surveys for Woodman Lane Surveying Project Contract with Mullikin Surveys for Lakestar Lane Surveying Project Contract with Mullikin Surveys for Moose Pass North Surveying Project Contract with Mullikin Surveys for Moose Pass South Surveying Project Contract with Mullikin Surveys for Toklat Way Surveying Project Contract with Mobile Equipment Services for Tree Stump Removal from West Homer Elementary School Contract with Homer Soil and Water Conservation District to conduct field reconnaissance Cooperative Agreement between KPB and Alaska Division of Forestry for seasonal firefighter crew (Kenai Crew) b. Waiver of formal bidding procedures and award of contract to Spohn Ranch, Inc. for Skateboard Park Equipment for North Peninsula Recreation Area c. Approval of sole source contract with Moore Plumbing and Heating for emergency repair of Air Handling Controller Systems at Nikiski Pool d. Approval of sole source contract with AMC Engineers for Nikiski Pool Hot Water Engineering Services e. Approval of Modification of Services Agreement between KPB and Fosselman & Weiland CPAs, Inc. for Medical Billing Services for CES and Bear Creek Fire Service Area f. Approval of Modification of Services Agreement between KPB and Healthware Solutions for Software Support Services to CES g. Approval of Agreement between KPB and Alaska Aquatic Therapy for use of facilities at Nikiski Pool h. Approval of bid award to Hammond Trucking & Excavating for Contaminated Soil Transport i. Approval of bid award to 2 Bears Trucking, T& C Enterprises, and METCO, Inc. for Dust Control Application j. Approval of contract with ProComm Alaska for Engineering Study of CES Communications Systems Vol. 43, Page 78 May 6, 2003

k. Approval of contract with Bruce Manley for Installation of Cabled Spruce Trees along Kasilof River frontage l. Approval of contract with Robert McCard for Installation of Cabled Spruce Trees along Kasilof River frontage m. Approval of contract with EB Consulting Services for review of KPB Delinquent Collection Process n. Approval of contract with Darcy Demers for Installation of Elevated, Light Penetrating Walkway and Stairs along the Kasilof River o. Approval of contract with Lowell Point Volunteer Fire Rescue for Lease of Tanker and Pump p. Approval of contract with ACS of the Northland, Inc. for Telephone Equipment at Central Peninsula General Hospital q. Approval of contract with George D. Lowery for Brush Removal and Installation of French Drains on riverbank r. Approval of contract with Donna Dennis for Installation of Elevated, Light Penetrating Gratewalk on KPB Parcel # 165-711-06 s. Approval of contract with Alan G. Olson, MAI for Appraisal Summary Report Other a. Letter from Chief Jeff Tucker, CES, regarding CES Board support for Ordinance 2003-14 Assembly Member Glick asked for clarification on the emergency repair of the air handler controllers at the Nikiski Pool. KPB Purchasing Agent Mark Fowler responded that the borough would seek reimbursement from Homer Electric Association. Assembly Member Glick asked if the contract with AMC Engineers was enough to cover all the engineering services as outlined to correct the inconsistent supply of hot water at the Nikiski Pool. Mr. Fowler said they were confident the company could perform as directed. Assembly Member Glick asked if special containers were required to transport contaminated soil in the contract awarded to Hammond Trucking and Excavating. Mr. Fowler noted the soil would first be treated, then transported and special containers were not required. President Sprague asked Mayor Bagley to report on his recent trip to Juneau, specifically for an update on education funding and allocations for the 2006 Arctic Winter Games. Mayor Bagley responded that he had no concrete news. May 6, 2003 Vol. 43, Page 79

PUBLIC HEARINGS ON ORDINANCES Ordinance 2002-19-36 Accepting and Appropriating a Grant from the Alaska Division of Homeland Security in the Amount of $14,000 for Developing Community Emergency Response Teams (Mayor) (Referred to Finance Committee) MOTION: Moss moved to enact Ordinance 2002-19-36. Assembly Member Moss gave a brief committee report on Ordinance 2002-19-36 and stated this funding would help to train local first responders. President Sprague called for public comment with none being offered. Mayor Bagley noted this came about from Project Impact. Additional grant funds may be sought to further this training program. The communities of Hope and Anchor Point would benefit greatly from this program VOTE ON MOTION TO ENACT: MOTION TO ENACT PASSED: Glick, Superman, Merkes, Long, Moss, Martin, Sprague Ordinance 2002-19-37: Accepting and Appropriating a Grant in the Amount of $27,937 from the Alaska Division of Homeland Security for Updating the Borough s Disaster Emergency Operations Plan (Mayor) (Referred to Finance Committee) MOTION: Moss moved to enact Ordinance 2002-19-37. Assembly Member Moss gave a committee report on Ordinance 2002-19-37 and said the last time the borough s disaster emergency operations plan was updated was in 1997. President Sprague called for public comment. Bob Valdetta, 520 Fifth Avenue, Seward, AK, suggested a Homeland Security School be established in the State of Alaska, to be headquartered at AVTEC in Seward. There being no one else who wished to speak, the public comment period was closed. VOTE ON MOTION TO ENACT: Glick, Superman, Merkes, Martin, Moss, Long, Sprague Vol. 43, Page 80 May 6, 2003

MOTION TO ENACT PASSED: Ordinance 2003-13: Authorizing the Acquisition of Tract D, Wes Warren Subdivision Ranch Addition, Plat No. 97-48, Kenai Recording District for a Fire Station Site within the Nikiski Fire Service Area in the Holt-Lamplight Area (Mayor) (Referred to Lands Committee) MOTION: Martin moved to enact Ordinance 2003-13. Assembly Member Martin gave a committee report on Ordinance 2003-13. She explained the history and need to establish another site to provide quicker response times within the Nikiski Fire Service Area. President Sprague called for public comment. Mae Leighton, member of the Nikiski Fire Service Area Board, was present and stated the board unanimously supported Ordinance 2003-13. There being no one else who wished to speak, President Sprague closed the public comment period. MOTION: Martin moved to amend Ordinance 2003-13 as follows: Final Whereas to read, the KPB Planning Commission at its regularly scheduled meeting of April 14, 2003 recommended enactment by unanimous vote; VOTE ON MOTION TO AMEND: MOTION TO AMEND PASSED: Glick, Superman, Merkes, Martin, Moss, Long, Sprague VOTE ON MOTION TO ENACT AS AMENDED: MOTION TO ENACT AS AMENDED PASSED: UNFINISHED BUSINESS - Postponed Items Glick,Superman, Merkes, Martin, Moss, Long, Sprague May 6, 2003 Vol. 43, Page 81

Resolution 2003-043: Establishing Policy with Respect to Federal Anti-Terrorism Acts, Legislation and Orders (Glick, Martin) (Final Hearing on 05/20/03) (Referred to Policies and Procedures Committee) [Clerk s Note: A motion to adopt Resolution 2003-043 was on the floor from the April 15, 2003 meeting.] Resolution 2003-043 (Merkes) Substitute: Establishing Kenai Peninsula Borough Policy with Respect to Federal Anti-Terrorism Acts, Legislation and Orders (Glick, Martin) (Final Hearing on 05/20/03) (Referred to Policies and Procedures Committee) President Sprague opened the public comment period. Patricia Linville, 1205 Vista Avenue, Seward, AK, spoke as a professional librarian, but not as the City of Seward s librarian. Ms. Linville discussed the privacy issues of library patrons and spoke in favor of Resolution 2003-043. There being no one else who wished to speak, President Sprague closed the public comment period. Assembly Member Glick stated a new substitute would be presented at the May 20, 2003 assembly meeting. MOTION: Merkes moved to postpone Resolution 2003-043 until the next scheduled meeting on May 20, 2003. VOTE ON MOTION TO POSTPONE: Glick, Superman, Merkes, Martin, Moss, Long, Sprague MOTION TO POSTPONE PASSED: NEW BUSINESS Resolution 2003-056: Supporting the Chugach National Forest Seward Ranger District Recreational Development Plan (Mayor) (Referred to Lands Committee) MOTION: Martin moved to adopt Resolution 2003-056. President Sprague called for public comment. The following people spoke in opposition to Resolution 2003-056: Vol. 43, Page 82 May 6, 2003

Bruce Jaffa, Mile 35.5 Seward Highway, Moose Pass, AK, stated as a whole, the community of Moose Pass would support development within the Chugach National Forest but suggested more scientific studies be conducted before a formal plan was adopted. Lynn Hohl, 2415 Cedar Street, Seward, AK, noted that she was a member of the KPB Planning Commission, and that she opposed adoption of the recreational plan. She requested reviews by the Moose Pass and Cooper Landing Advisory Planning Commissions. There being no one else who wished to speak, the public comment period was closed. MOTION: Long moved to amend Resolution 2003-056 as follows: Title to read, A Resolution Supporting the Chugach National Forest Seward Ranger District Conceptional [RECREATIONAL] Development Plan Fifth Whereas to read, the Seward Ranger District [WITHIN THE CHUGACH NATIONAL FOREST] has developed a conceptional plan to modernize and expand the recreational infrastructure of campgrounds, trails, cabins, and trail heads, subject to public hearings in the area; and The sixth, seventh, eighth and ninth whereas combined to read as follows: Whereas, the Plan includes new campground units, modernization of existing units, new public use cabins, trail projects and new trail heads; and Section 1 to read, That the Kenai Peninsula Borough supports the Chugach National Forest Seward Ranger District s Conceptional [RECREATIONAL] Plan... Mayor Bagley spoke in favor of the proposed amendments to Resolution 2003-056. VOTE ON MOTION TO AMEND: Glick, Superman, Martin, Merkes, Moss, Long, Sprague May 6, 2003 Vol. 43, Page 83

MOTION TO AMEND PASSED: MOTION: Martin moved to amend Resolution 2003-056 as follows: Final Whereas to read, the Kenai Peninsula Borough Planning Commission recommended approval at the April 28, 2003 regular meeting. VOTE ON MOTION TO AMEND: MOTION TO AMEND PASSED: Glick, Superman, Martin, Merkes, Moss, Long, Sprague The gavel was passed to Vice President Superman. President Sprague stated the local advisory planning commissions should have had an opportunity to respond to the suggested plan before the assembly voted on such an issue. The gavel was returned to President Sprague. VOTE ON MOTION TO ADOPT AS AMENDED: Moss, Merkes, Martin, Superman, Long Sprague, Glick MOTION TO ADOPT AS AMENDED PASSED: 5 Yes, 2 No, 2 Absent PUBLIC COMMENTS AND PUBLIC PRESENTATIONS -. ASSEMBLY MEETING AND HEARING ANNOUNCEMENTS Board of Equalization May 7, May 27, May 28, May, 29 and May 30, 2003 Budget Work Session May 20, 2003 at 10:00 a.m. The next meeting of the Assembly was scheduled for May 20, 2003, at 7:00 p.m. in the Borough Assembly Chambers, Soldotna, Alaska. ASSEMBLY COMMENTS Assembly Member Martin thanked the City of Seward for their hospitality. Ms. Martin stressed the need to follow the process and including the advisory planning commissions on matters such as the Chugach Plan. Ms. Martin noted the planning commission did take action on this issue. Assembly Member Glick also stressed the importance that the proper process be followed with the Chugach Plan. Mrs. Glick had received information from the National Association of Counties Vol. 43, Page 84 May 6, 2003

(NACo) and asked if other assembly members were interested in serving on any NACo boards or committees. Assembly Member Glick reported on recent school board actions which included the adoption of the FY04 budget, the closure of a school in Nikiski and the possibility of filing a lawsuit against the state on the inequitable cost differential used in the funding formula. Assembly Member Long reminded his fellow assembly members that the Chugach Plan covered federal lands and did not fall under the process for review of proposals regarding Borough lands. Assembly Member Merkes also thanked the City of Seward for hosting the assembly. Assembly Member Moss expressed his appreciation to the Seward administration. Mr. Moss noted the Shorebird Festival was scheduled for May 9-11 in Homer. Assembly Member Superman was intrigued by the possible lawsuit with the state over education funding. Assembly President Sprague thanked the City of Seward for their generous hospitality. Borough Clerk Murphy extended her appreciation to City Clerk Jean Lewis and her staff for hosting the assembly. ADJOURNMENT With no further business to come before the assembly, President Sprague adjourned the meeting at 9:55 p.m. I certify the above represents accurate minutes of the Assembly meeting of May 6, 2003. Linda S. Murphy, Borough Clerk Approved by Assembly: May 6, 2003 Vol. 43, Page 85