I KENAI PEN11 BOROU

MINUTES OF SPECIAL BOROUGH ASSEMBLY MEETING SEPTEMBER 14, 1965 SOLDOTNA, ALASKA

The assembly was a t 10:30 a.m.

; c a l l ed t o order r e s i d e n t , Robert Will iams,

PRESENT: Ainsworth, Coursen, Dye, Farnsworth, Ge rb i t z , Jackson, Will iams; Borough Chairman, Harold Pomeroy, Borough Counsel, John Havelock

ABSENT: Ing l i r

There be ing no o b j e c t t h e agenda a t t h e s u g g e s t i

the f c t h e c

ded t o

Tax ad jus tments and p e n a l t y and i n t e r e s t waiver Peninsu la Growers, Inc . a p p l i c a t i o n f o r hothouse t a x exemption Homestead e n t r y l and t a x p o l i c y

Agenda i t em 1: S e a t i n g assembly memb I

A l e t t e r from t h e C i ty of Seward reporting t n e r e s i g n a t i o n of Pe r ry Stockton from t h e p o s i t i o n a s c i t y assemblyman and t h e appoint- ment of Will iam Vincent a s assemblyman was cons ide red , a s was a l e t t e r from t h e Ci ty o f Se ldovia r e p o r t i n g t h e r e s i g n a t i o n of Richard Inglima from t h e p o s i t i o n a s c i i iernblyman a1 ! appointment of Henry Gain a s assemblyman.

Upon motion by Dye, seconded by Jackson, t h e assembly accepted t h e r e s i g n a t i o n of Mayor Stockton of Seward and Mayor Ingl ima of Se ldovia a s assemblymen and welcomed M r . Vincent and M r . Gain a s members of t h e assembly. The v o t e wa

YES : Ainsworth, Coursen, Dye Jackson, Vin W i l l i

NO : None ABSENT: None

Aaenda i t e m 2 : Minut

nswori th , Ga l in , Ge rb i t z ,

There be ing no o b j e c t ~ u r ~ , the p r e s i d e n t d e c l a r e d t h e minutes of J u l y 30, 1965, a s p rev ious ly i s s u e d t o ssemblymen, t o b e approved.

Agenda i t em 3 : P r e s e n t a t i o n s by t h e p u b l i c v

Proposal f o r a breakwater of seventeen l i b e r t y S i r s p a permanently p laced o u t from new Boulder P o i n t a t Nikishka Bay t o provide s a f e

Minutes, September 1 4 , 1965

wa te r f o r ba rges , work b o a t s and l a r g e r s h i p s was p re sen t ed by M r . James Arness of Arness Terminal . H e s a i d t h e Corps of Army

1 eng inee r s cou ld b e a u t h o r i z e d t o do t h e work which would c o s t $30,000 a s h i p towing c o s t from a mothbal led f l e e t b u t t h a t t h e borough would have t o be t h e governmental agency t o d e a l w i t h t h e Corps. Assembly- man Dye r e p o r t e d Kenai would con t inue t o p r e s s f o r Kenai River mouth development o f a ha rbo r u sab l e 2 4 hours a day and t h a t o i l companies needed and would u s e t h e f a c i l i t y b u t t h e improvement proposed by M r . Arness was a good i d e a too .

Upon motion by Dye, seconded by Jackson, the assembly d i r e c t e d t h e chairman t o c o n s u l t w i t h t h e Corps o f Engineers on t h e Arness Terminal p r o j e c t and t h e Kenai Dock p r o j e c t and o t h e r p o s s i b l e developments i n t h e a r e a , w i th c o p i e s o f t h e correspondence t o go c u r r e n t l y t o t h e assemblymen. The v o t e was unanimous.

Agenda i t e m 4 : Union and Marathon o i l companies. App l i ca t i on o f i n d u s t r i a l i n c e n t i v e a c t t o proposed l i que - - -

f a c t i o n p l a n t

The assembly cons ide red t h e Union and Marathon o i l companies a p p l i c a t i o n f o r t a x exemption. The formal a p p l i c a t i o n t o t h e S t a t e had been d i s t r i b u t e d t o t h e assemblymen p r e v i o u s l y .

P r e s e n t t o r e p r e s e n t t h e companies w e r e : Marathon O i l Company; Cha r l e s A . Boyce, W . B a r t Emery, E . Lee Bryant: Union O i l Company o f C a l i f o r n i a ; L e w i s D. Laurence, Roy S. Broberg, Rober t C . Hartmann. P r e s e n t from t h e S t a t e o f Alaska: Kar l Vonder Ahe, S t a t e Div i s ion

- of Mines and Minera l s eng inee r . M r . Vonder Ahe w a s f u r n i s h e d by t h e S t a t e t o p rov ide i n fo rma t ion and answer q u e s t i o n s a s d e s i r e d by t h e Assembly.

Union and Marathon O i l Company o f f i c i a l s p r e s e n t e d a summary of t h e a p p l i c a t i o n t o t h e S t a t e f o r exemption from s t a t e and borough t a x e s . M r . Boyce and M r . Laurence spoke f o r t h e companies and answered q u e s t i o n s ; M r . Emery answered eng inee r ing q u e s t i o n s . The a p p l i c a t i o n r eques t ed exemption from borough p r o p e r t y , s a l e s and use t a x e s f o r 10 y e a r s f o r a proposed gas l i q u e f a c t i o n p l a n t t o l i q u e f y n a t u r a l ga s from t h e Kenai ga s f i e l d f o r s a l e i n Japan. I n i t i a l p l a n t and f a c i l i t i e s inves tment was r e p o r t e d a t $24,500,000 w i t h p r o s p e c t i v e a d d i t i o n s of about $21,000,000 more. The s p e c i f i c pro- posa l t o t h e borough was t h a t t h e l i q u e f a c t i o n p l a n t be g ran t ed an exemption from p r o p e r t y t a x e s f o r 80% o f t h e a s s e s s e d v a l u e f o r 10 y e a r s from t h e f i r s t o f t h e y e a r of s t a r t of . o p e r a t i o n f o r t h e o r i g i n a l p l a n t and f o r a d d i t i o n s du r ing t h e 10 y e a r p e r i o d and, i n a d d i t i o n , exemption of p l a n t c o n s t r u c t i o n from any s a l e s t a x . There w e r e many q u e s t i o n s by assemblymen and e x t e n s i v e d i s c u s s i o n .

The chairman recommended a g a i n s t g r a n t i n g an exemption on t h e grounds it would b e unsound and u n j u s t i f i e d f o r borough t axpaye r s t o s u b s i d i z e under tak ings t o market ga s , t h a t t h e economy of t h e people o f t h e borough w a s t oo meagre t o a f f o r d t h i s , t h a t by having vo ted a 3 % s a l e s t a x and themselves paying d a i l y a s u b s t a n t i a l p a r t

.I of t h e c o s t of s c h o o l s , t h e people w e r e a l r e a d y c o n t r i b u t i n g i n a l a r g e way t o having a very moderate p r o p e r t y t a x which was o f major s i g n i f i c a n c e t o i n d u s t r i a l and b u s i n e s s investment and t h a t

Minutes, September 1 4 , 1965

i f marketing gas were t o bc ~ ~ s i d i z e d w i t l l La* exemptions t h i s should be i n accordance wi th s t a t e p o l i c y and r e d u c t i o n by t h e s t a t e

C of i t s income from gas . The recommendation was conta ined i n a w r i t t e n s t a t emen t .

M r . Laurence s a i d t h e companies would l i k e t h e p r i v i l e g e o f s tudying M r . Pomeroy's s t a t emen t and responding t o it. This was d i scussed and assemblyman Gerb i t z made a motion t h a t t h e assembly g r a n t M r . Laurence 's r e q u e s t t o b e al lowed t o respond t o M r . Pomeroy's s t a t emen t t hen m e e t i n execu t ive s e s s i o n . The motion was seconded by assemblyman Farnsworth. Assemblymen ques t ioned an execu t ive s e s s i o n . The motion was withdrawn.

Assemblyman Dye s a i d t h e assembly should dv =",rything p o s s i b l e t o encourage i n d u s t r y and t h a t t h e r e should be some exemption b u t n o t t o t h e e x t e n t r eques t ed by t h e companies. He made a motion f o r a 75% exemption on t h e f i r s t u n i t of t h e p l a n t t o an e s t ima ted va lue o f $25,000,000, b u t exc lud ing t h e l a n d , dock, and any o t h e r f a c i l i t i e s n o t a p a r t of t h e p l a n t o p e r a t i o n . There w a s no second.

Assemblyman Dye then made a motion t h e exemption b e on 50% o f a s se s sed v a l u e , which was seconded by Farnsworth. This was de fea t ed 7 t o 2 a s fo l lows:

YES : Dye, Vincent NO : Ainsworth, Coursen, Fai

W i l l i a ~ ABSENT: None

a i n , ( Zerb i t z , Jackson,

C

I t was r ~ ~ p ~ ~ e d J J ~ a~==l tw~yman Vincent t h a t t h e door should be k e p t open on t h e s u b j e c t f o r 30 days f o r f u r t h e r c o n s i d e r a t i o n a t a p u b l i c meeting of t h e assembly t o be h e l d w i t h i n 30 days . The v o t e was :

YES : Dye, Farnsworth, G e r : NO: Coursen, Ainsworth,

b i t z , Gain

a n i e s t3TODC

Jacks t , W i l -1 iams

M r . Laurence s a i d t h e comp would have t o s tudy t h e ques t ion a s t o whether t o make a f u r t h e r , - - , ~ s a l and t h a t i n any e v e n t , e f f o r t s would con t inue t o conclude a c o n t r a c t w i t h Tokyo Gas Company.

Agenda i t e m 5: Borough S e a t . Propos Octob - b a l l o t

Kena: - -- - - .

L t h e

;ed l o c a t i o n s t o go on

and Sc 1 - 7 - \ .

L e t t e r s fri 2 c i t i i t Seward, ~ l d o t n a and from t h e Tustemena ~ n a m b e r o r Lommerce (Clam G u l c r l ) r eques t ing t h e i r l o c a t i o n s be p l aced on t h e bal : i t h e October 5 e l e c t i o n were presen ted .

Upon motion by Dye, seconded by Vincent , t h e assembly approved p l a c i n g t h e f o u r names, Kenai, Seward, So ldo tna , and Clam Gulch on t h e b a l l o t f o r t h e e l e c t i o n t o be h e l d October 5, 1965, wi th t h e l o c a t i o n t o b e chosen by p l u r a l The \ a s :

YES: Dye, G e r b i t z , Gain, Alnswc NO: Farn irsen

rote w

- . JacKson, Vincent , Will iams

~ i n u t e s , September 1 4 , 1965

Agenda i t e m 6: Land f u r p u u ~ ~ c purpos,,

( a ) Legal p rov i s and p o l i c i e s und D iv i s ion of Lands o p e r a t e s , M r . J o e K e ~ r r a i l c

M r . Ted Smith.

er wh: e.--.- -

(b ) Lands f o r ou tdoor r e c r e a ~ ~ u r l and uizner p u b l i c purposes and which a r e s u b j e c t ' -

borough s e l e c t i o n .

The method o f s e c u r i n g s ta te l a n d f o r l o c a l c l t y o r community u se w a s d i s c u s s e d . The q u e s t i o n a r o s e p r i m a r i l y i n connec t ion w i t h p a r c e l s s u i t a b l e f o r camps i tes and o t h e r ou tdoo r r e c r e a t i o n purposes . Loca t ions i n which t h e r e was i n t e r e s t w e r e : S e l d o v i a , a s i t e ou t - s i d e t h e c i t y f o r a pa rk , p i c n i c and campsi te : Clam Gulch, a s i t e a t t h e mouth of Clam Gulch f o r a camps i te and beach a c c e s s w i th t h e Tustemena Chamber o f Commerce p ropos ing t o be r e s p o n s i b l e : So ldo tna , a s i t e i n t h e c i t y f o r mun ic ipa l purposes : Seward, a s i t e f o r f u t u r e development and p o s s i b l y a n o t h e r f o r ou tdoor recre- a t i o n purposes .

D iv i s ion o f Lands parks o f f i c i a l Theodore Smith t o l d t h e assembly t h e a p p r o p r i a t e means t o make g e n e r a l g r a n t l a n d a v a i l a b l e f o r l o c a l purposes such as o u t l i n e d would b e f o r t h e borough t o s e l e c t it and make s u i t a b l e ar rangements w i t h t h e c i t i e s o r community o r g a n i z a t i o n s concerned.

M r . Smith d e s c r i b e d t h e f e d e r a l matching program under which 50% of t h e c o s t o f ou tdoo r r e c r e a t i o n p r o j e c t s cou ld b e s ecu red . H e r e p o r t e d $60,000 f o r p r o j e c t s i n t h e borough had been p u t i n t h e S t a t e a p p l i c a t i o n t o t h e f e d e r a l government.

Assemblyman Dye s a i d t h e assembly shou ld n o t make borough l and s e l e c t i o n s f o r t h e c i t y and community purposes o u t l i n e d a s t h i s would u se up l a n d t h e borough was e n t i t l e d t o select and from which revenue would o the rwi se b e r e c e i v e d .

Assemblyman Coursen s a i d h e c o u l i ~f any b e t t e r u s e f o r t h e l a n d t h a n t o l e t t h e c i t i e s ar ies have it f o r p u b l i c purposes . H e made a mot ion t h e assembly approve t h e borough t a k i n g t h e l a n d r e q u e s t e d f o r l o c a l p u b l i c u se and t u r n it ove r t o t h e communities, w i th t h e p r o v i s i o n t h a t i f t h e l a n d w e r e n o t used f o r t h e i n t ended purposes , t h e borough cou ld t a k e it back. The motion was seconded by Farnsworth .

I n t h e d i s c u s s i o n b e f o r e t h e v o t ~ , A L was unders tood t h a t each p a r c e l invo lved would be s u b j e c t t o a c t i o n by t h e assembly as t o deed o r l e a s e and t h e p r o v i s i o n s i n each . The v o t e on t h e motion was :

YES: Ainsworth, Cours Vincen t , Will iam

NO: Dye

en , Fi IS

srnswc Gain, Ge rb i t z , Jackson,

W C ~ I U ~ i t e m 7: S a l e s t a x o rd inance amendment i n t r o d u c t i n n - exc lus ion of mortuary s e r v i c e s

Jreslc,,., . . i l l i ams r ead t h e fo l l owing s a l e s t a x o rd ina nent :

PROPOSED ORDINANCE NO. 12

4n ord inanc 3ods o f mor

~ i d i n g f o r t h e exemption o f t h e s IS.

v i c e s 1

and gc

ENACT:

,m 1

E D by Assembly of t h e Kenai Pen insu l a Borou

S e c t i o n 4 of Ordinance No. 9 o f t h e Kenai rcllrlrauAa on A p r i l 20, 1965, i s amended by addir b s e c t i o n t o be des igna t ed Subsec t ion I

Borouc t h e fc

jh adc ~ l l o w i

k) S e r v i c e s performed by m o r t i c i a n s l i c en : lnder AS 08.44.010; and r e t a i l s a l e s of fun6 u p p l i e s by such pe r sons .

j e c t i o i a t e l y

In 2 . ' upon

EFFECTIVE DATE: Th i s o rd inance s h a l l be e i t s passage and app rova l acco rd ing t o law.

i v e : immed:

c . ~n 3 . PUBLICATION: P u b l i c a t i o n s h a l l be bl i n g a r . r y o f t h i s o rd inance t o b e i n s e r t e d one t i n a new!

paper o r g e n e r a l c i r c u l a t i o n i n t h e Borough, by ma i l i ng a copy o: t h e o rd inance t o t h e c i t y c l e r k of each c i t y i n t h e Borough wi th t h e r e q u e s t t h a t it be pos ted on t h e C i t y H a l l b u l l e t i n board fo: t e n days immediately fo l l owing r e c e i p t and by m a i l i n g a c o y 7 -F +k-

o rd inance t h p o s t o f f i c e i n t h e Borough w i t h t h e reque it be p o s t e t h e p o s t o f f i c e b u l l e t i n board f o r 10 days r

fo l l owing r e c e s p t .

j e c t i c summa

#-

Iy UL

s t thi immed:

LILC:

a t i a t e l y

lo eacl !d on . - -- - -

SEVERABILITY: I f any s e c t i o n , sub-sec t ion s o rd inance i s d e c l a r e d i n v a l i d by a c o u r t

s d i c t i o n , t h e remainder o f t h e o rd inance s t *ce and e f f e c t .

tence n- o r c l a u s e o

petenl i n fu:

1 unanin on O c t

Jpon motion by Dye, seconded by G e r b i t z , t h e ass6 nously i n t roduced t h e o rd inance and o rde red it s 6

:ober 11, 1965.

sho le ing

. i t e m

- 7 ---,

8: Tax ad jus tments and p e n a l t y and i - s t wa:

The C ~ ~ A L L L L ~ ~ r e p o r t e d t h a t i n a d v e r t a n t e r r o r s i n t h e t a x ro : and consequ i n t l : b i l l s i s s u e d ' r e q u i r e d appl c o r r e c t i o n .

le t a x roval f o r

Upon motion by Ainsworth, seconded by Dye, t h e l i s t o f t a x ad jus tments a s p r e s e n t e d by t h e chairman and on f i l e i n t h e f i na l depar tment was approved by t h e assembly by t h e fo l l owing v o t e :

IES : en, D l on, Vj

r e , A i incent

nsworth, Gain, Farnswc . , VJil1,iams

Gerb i

None

The chairman r e p o r t e d t h e r e had been a r e q u e s t from R lord f . a l t y i ~ t e r e s t . M r . C r z zceive . i c e bl 1 n o t r e c e i v e t a ,

u ~ ~ ~ u s s i o n , - ~ u r ~ w a s 11taue by r )n, seconded by T j e c t F g p e n a l t y and i n t e r e s t on t

o r w a . d a s s ( . m o t :

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and i r u t dic Jacksc

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ad t e r a t

essmer

issemb , The

l y re: v o t e

raw for

A+nTworth , Coursen, Gain, Ge rb i t z , Jackso ncen t ,

ABSTAINED: uye None ABSEN

-. Irne cnalrman r e p o r t e a t h a t t h e Harry Ramsey t a x b i l l naa never led him due t o of e r r o r i n ma i l i ng b i l l t o ano the r person. : d i s c u s s i o n , mot a s made by Jackson, seconded by Gerb i t z , p e n a l t v and i n t f on t h e Harry Ramsey t a x b i l l b e waived.

The v o t e w

r eac t Af t e r t h a t

lf i c e ; ion w !rest

YES : L ~ S W O I oursen , Dye, Gain, Ge rb i t z , J ack r.arnsworth, Vincent , Will iams None

T: None

son,

NO : ABSEN

o r ho- Aaend n 9: Pen insu la Growers, I n c . a p p l i c a t - t a x exemption

The a toma t

#-

rower! o tna ) -

ssembly r ece ived an a p p l i c a t i o n from Peninsu la G oe hothouse p r o j e c t under c o n s t r u c t i o n nea r Sold

r o r a 3 y e a r exemption from p rope r ty t a x e s . Th i s was a copy o r t h e a te and by unanimous consent under e p o r t from t h e S t a t e .

a t i o n woulc

t o t h 3 awai

le S t a . t a r

was

Agend

M r . P

n 10: Homestead e n t r y l and t a x p o l i c y

omeroy r e p o r t e d t o t h e assembly t h a t i n t h e absence o: a p o l i c y a , t h e of homestead entrymen t o whom p a t e n t s had n o t ye 2 i s s ~ u l d have t o b e a s s e s s e d and taxed on t h e b a s i s of w 3uld k l e d e n t r y va lue . H e s t a t e d t h a t h i s t o r - i c a l l y hom 1 e n t r y l and had n o t been taxed i n Alaska, t h i s was a spec i t u a t i o n i n which t h e homesteader could 10s wi thou t re 3 by i l l n e s s f o r c i n g him t o l e a v e o r some o c o n d i t i o n ~ e y o n d h i s c o n t r o l . He recommended t h e assembly m a K e t h e de te rmina t ion t h a t t h e l a n d of homestead e n t r i e s p r i o r t o i s suance of p a t e n t .

l a n d s led wo be c a l

e s t e a ( i a l s : coursf 1- - . - - .- .

t h a t . e h i s l and t h e r -. - 1-

'arnsw lomest ! :

y Vinc r i o r

t h e a iuance

Upon motion by F wed n o t t a x i n g h

~ ~ i e fo l lowing vote

o r t h , seconded b ead e n t r y l and p

YES : vorth, Coursen, Farnsworth, Dye, Gain, Gerb . ----3nt, Will iams

NO :

Ainsr Vi ncc

i t z , ;

None

Minutes, sepcermer 1 4 , 1965

was n~ taxin1

o secc g t h e

r r a a r = ~ t ~ ~ y l ~ l ~ ~ ~ l Dye made a mot ion t h e r e b e no t a x on lease ~ n d . The chairman e x p l a i n e d t h e S t a t e : i t u t i l e a s e h o l d i n t e r e s t o f l e a s e s .

The me

Cons t

z e t i ng was ad journed

Date Approved: November 2 ,

C ' '2- P r e s i d e n t ~ o b & t E . Wil l iam