MEMORANDUM

TO: William Popp, Assembly President

Members, Kenai Peninsula Borough Assembly

FROM: Drew Scalzi, Assembly Member

Chris Moss, Assembly Member

DATE: January 6, 2000

SUBJECT: Proposed Scalzi and Moss substitute to Ordinance 99-71

The accompanying proposed substitute to Ordinance 99-71 includes the changes shown below in bold, with additions underlined and deletions bracketed and capitalized. The majority of these amendments are provided in response to public and assembly member comments received during the hearings conducted in Homer and Anchor Point concerning this proposed service area.

A. Summary of Changes:

1. Chris Moss is added as a co-sponsor, and two new "whereas" clauses are added. One clarifies that the proposed ordinance satisfies the statutory requirement that the services may not be provided by annexation to a city, by an existing service area, or by incorporation as a city. The second one shows the most recent population dispersion in the service area, supporting the change in board apportionment.

2. Section 16.74.010 is revised to match the boundaries shown on the map.

3. Section 16.74.020 is changed by increasing the board from a five-member to a seven-member board. Four members elected from the service area outside of the city limits of Homer, and the remaining three elected from within the city limits of Homer. This is in proportion to the population figures shown in the new "whereas" clause.

4. Section 16.74.080 is revised to clarify that capital equipment may also be purchased with service area funds, that the board shall try to spend funds on projects throughout the service area in rough proportion to the taxes collected from each tax area, and other associated clarifications regarding the use of funds.

In Section 3 of the ordinance, the proposition is revised to state that capital equipment may be purchased with service area funds, and to better describe the affected area. A second proposition is added asking whether the service area shall be limited to a maximum tax of .5 mills; and section 4 is revised to clarify the voting procedures.

Specific Changes:

For more detail, following are the specific language changes shown in bold, with additions underlined and deletions capitalized and bracketed. Unchanged sections are not shown:

WHEREAS, the proposed new level of service may not be provided by an existing service area, by annexation to a city, or by incorporation as a city; and

WHEREAS, the most recent population figures available for the proposed area show that approximately 58% of the service area population resides outside of the cities of Homer and Kachemak City, 38% resides inside the City of Homer, and 4% resides inside of Kachemak City; and

16.74.010. Established--Boundaries.

There is established pursuant to AS 29.35.450 a service area within the borough designated the "Kenai Peninsula Borough South Peninsula Recreation Service Area" including that portion of the borough inside and outside the city limits of Homer described as follows:

T4S, R10W, R11W, R12W, R13W, R14W, R15W,T5S, R15W, R14W, R13W, R12W, R11W, T6S, R 15W, R14W, R13W, R12W, Seward Meridian, Alaska, and all land within the corporate boundaries of the city of Homer.

16.74.020. Board--Established--Nomination and election of members.

There is established a board of directors for the Kenai Peninsula Borough South Peninsula Recreation Service Area composed of seven [FIVE] members who shall be residents of the service area and elected by the qualified voters of the service area as provided in KPB 4.20.020 and KPB 16.04.065. There shall be four [ONE] members [EACH] elected from the area of the service area residing outside of the city limits of Homer (Seats A, B, C, and D), [Anchor Point (Seat A), Diamond Ridge (Seat B), Fritz Creek (Seat C), and Kachemak Bay (Seat D) voting precincts] and three [ONE] members elected from within the city limits of Homer (Seats E, F, AND G).

16.74.080. Board--Powers and duties.

The board of directors of the service area, subject to assembly approval and appropriation of funds and the provisions of KPB 16.04.001 and other applicable law, may construct and improve facilities, and acquire associated capital equipment, to provide recreational services within the service area. The borough shall retain ownership of equipment and facilities constructed or improved with service area funds, unless the assembly by ordinance authorizes the transfer of ownership to another entity.

The types of recreational activities for which the board may construct and improve facilities include but are not limited to parks, trails, ice rinks, golf courses, shooting ranges, and ballfields. The types of capital equipment that may be acquired for this service area include, without limitation, buses for transporting people within the service area to and from service area facilities, trail groomers, and other similar equipment. The board shall endeavor to [cause such facilities to be constructed] finance projects located throughout the service area, in rough proportion to the taxes collected from each tax code area [rather than concentrated in any portion of the service area]. Subject to assembly approval, the board shall develop criteria which it shall use to evaluate and prioritize proposals for use of the service area funds.

Except as provided below, the service area shall not directly operate or maintain any recreational facilities or equipment, and must require applicants to demonstrate an ability to operate and maintain the facility or equipment for which borough funding is sought. The service area is not authorized to fund operating expenses of service area facilities or equipment, but may spend funds for maintenance to preserve the value of the asset in the absence of an operator, subject to appropriation and availability of funds.

D[B]. The board shall advise the mayor and the assembly concerning the administration and operation of the service area.

E[C]. The board shall promptly furnish accurate and complete copies of minutes of all board meetings to the mayor and assembly.

F[D]. The board may adopt policies and procedures for the operation of the service area as approved by the mayor.

SECTION 2. That the service area board shall be elected at the election establishing the service area. Notwithstanding the provisions of KPB 16.74.050, board seats to be elected at the _________, 2000, special election shall be staggered as follows: Seats A and E for one year; seats B, C, and F [and C] for two years; and seats D and [E]G for three years.

SECTION 3. That the following propositions shall be placed before the voters of the Kenai Peninsula Borough South Peninsula Recreation Service Area at a special by-mail election to be held ___________, 2000.

PROPOSITION NO. 1

SHALL THE KENAI PENINSULA BOROUGH BE AUTHORIZED TO EXERCISE RECREATION POWERS, BY FUNDING CAPITAL IMPROVEMENT PROJECTS AND CAPITAL EQUIPMENT PURCHASES FOR RECREATIONAL PURPOSES, IN THE KENAI PENINSULA BOROUGH SOUTH PENINSULA RECREATION SERVICE AREA, WITHIN THE SERVICE AREA BOUNDARIES DEFINED BY ORDINANCE 99-71? THE AREA INCLUDES ALL LAND ON THE KENAI PENINSULA SOUTH OF COTTONFIELD AVENUE (MILE 149.75 STERLING HIGHWAY) AND WEST OF _____________________, INCLUDING THE CITIES OF HOMER AND KACHEMAK CITY.

YES ( ) NO ( )

PROPOSITION NO. 2

EXCEPT FOR SPECIAL ASSESSMENTS WITHIN AN IMPROVEMENT DISTRICT, SHALL THE SOUTH PENINSULA RECREATION SERVICE AREA BE LIMITED TO A MAXIMUM TAX OF .5 MILLS?

YES ( ) NO ( )

SECTION 4. Except as provided below, [T]that this ordinance shall take effect upon approval of the propositions in Section 3 above by a separate majority of the qualified voters voting on the issue residing in each of the following three areas: the City of Homer, Kachemak City, and all remaining areas of the service area, and also when either the borough receives Department of Justice preclearance under the Voting Rights Act of 1965 or 60 days after the Department of Justice has received the borough's request for preclearance, whichever is earlier. If the borough's request for Department of Justice preclearance has been resolved prior to the certification of the election results, the date of certification shall be the effective date of the ordinance. If the city councils of both Kachemak City and the City of Homer agree by ordinance to be included in this proposed service area within ___ days of the effective date of this ordinance, then separate approval by a the voters of each area described above in this section is not required, and instead approval by majority of the qualified voters voting on the issue throughout the service area is required.

[SECTION 5. THAT THIS ORDINANCE SHALL ALSO ONLY TAKE EFFECT AFTER THE CITIES OF HOMER AND KACHEMAK EITHER AGREE TO BE INCLUDED IN THE SERVICE AREA BY ORDINANCE OR APPROVAL IS GRANTED BY A MAJORITY OF THE VOTERS AS REQUIRED BY AS 29.35.450.]