MEMORANDUM 05- 180

TO: Mayor Hornaday and Homer City Council

FROM: Walt Wrede

DATE: November 21, 2005

SUBJECT: Request Postponement / Ordinance 05-39

Ordinance 05-39 amends HCC Title 13 by adding a new Chapter 13.50 entitled “Underground Utilities Required”. This ordinance is presently scheduled for second and final reading at the regular meeting on November 28. I believe that this ordinance needs more work and discussion and I would recommend that the Council postpone final adoption until the second meeting in January. I make this recommendation for the following reasons:

• To date, I still have not had meaningful discussions with ACS and GCI. I have traded phone messages with ACS and I think it is correct to say that they are less than enthusiastic about the ordinance. I hope to have more to report by meeting time.
• HEA has been very helpful and cooperative. They have offered some suggestions, particularly with respect to how the placement of utilities line underground might be financed. We have not yet placed any of these proposed amendments in writing. They are just ideas being discussed.
• The public: As you know, there was a public hearing on this ordinance at the November 14 meeting. No one testified. I am a little concerned that this ordinance is not on anyone’s radar screen and think we should take more time to get the word out. There seems to be broad support for this ordinance but I suspect that much of the support is coming from folks who think the City is simply going to force HEA, ACS, and GCI to place lines underground. In fact, it is the consumers who will pay for this. The cost of electricity and fuel is already going up at a rapid pace.
• Other Priorities: This ordinance requires alot of debate and careful analysis. Right now, for the next two meetings, I think that the most important thing we have before us is the budget. I am reluctant to divert attention away from it at this time.

RECOMMENDATION:

Postpone action on Ordinance 05-39. Recommend a second public hearing the first meeting in January and second reading the second meeting in January.