Session 01-07, a Regular Meeting of the Homer City Council was called to order at 7:31 p.m. by Mayor Cushing at the Homer City Hall Council Chambers located at 491 E. Pioneer Avenue, Homer, Alaska, and opened with the Pledge of Allegiance.

Council's Committee of the Whole met from 4:02 p.m. to 5:54 p.m. Agenda Items were the Regular Council Agenda, projects, SJR 16 and HJR 18.

PRESENT: COUNCILMEMBERS: CUE, FENSKE, KRANICH, LADD, MARQUARDT, YOURKOWSKI.

STAFF: CITY MANAGER DRATHMAN

CITY CLERK CALHOUN

CITY PLANNER MILLER

FINANCE DIRECTOR BAUGH

PUBLIC WORKS DIRECTOR MEYER

AGENDA APPROVAL

(Addition of items to or removing items from the agenda will be by unanimous consent of the Council. HCC 1.24.040.)

The substitute agenda, which includes the Executive Session and Memorandum 01-27, was approved by consensus of the City Council.

PUBLIC COMMENTS UPON MATTERS ALREADY ON THE AGENDA

Mary Griswold commented on the Executive Session relating to the Kachemak Emergency Service Area (KES). She advised that the Service Area Board has been meeting on a weekly basis since December researching options for providing service. She reported that Fire Chiefs and support personnel from other peninsula departments; employees from state forestry; and Borough department employees from finance, capital projects, administration and personnel have attended their meetings to share their expertise. She further reported that Kenai Peninsula EMS coordinator Sue Hecks and Central Emergency Services Chief Len Malmquest have been especially helpful. She stated that it is time for KES to firm up their plans to provide service, adding that last week KES became a registered Fire Department with the State Fire Marshall's Office. She relayed that KES acknowledges that it will take a long time to move from plans to service and that KES is under no elusion that they will be fully operational very soon. Ms. Griswold advised that on Thursday the KES Board intends to decide what steps toward service will be taken this year, and with what personnel and equipment. KES is prepared to operate independently from the City of Homer, however, some still hope for a contract for continued service through the Homer Volunteer Fire Department. She shared that KES still thinks they can make better use of human and financial resources by augmenting the existing infra structure rather than duplicating it. She thanked the Council for considering the KES contract proposal again tonight and that if the Council decides that they are willing to discuss cooperative agreements with KES to please let them know before Thursday evening. She reiterated her willingness to take questions or meet with the Council at their convenience.

Ken Castner commented on Ordinance 01-16 and voiced his belief that the right thing for the City to do is to make a finding of surplus of water and to negotiate the use of the surplus water with one or two bulk water haulers that exist. He stated that he thinks this has been the intent of the Council, it is in the best interest of the City and is a very clean, sort of a positive thing. He disagreed with the Council obligating this Council or any future Council to water sales in any shape or form, because it is bad planning. He noted that the water will be needed if there is ever a seafood plant again, City boundary expansion, real water shortage in the City's water shed and/or any other reason. He objected to any verbiage that implies or allows obligation of the City to provide any amount of water other than what is surplus to the City. He commented on listening to Mary Griswold, for a couple of meetings, requesting the City to take some action regarding KES and agreed that the City should take some action it deems in the best interest of the City. He urged the City to not "pocket veto" the KES request and voiced his personal embarrassment regarding the City's inaction.

Millie Martin commented on the Executive Session and that she is here to support KES as well as the contract that they have presented to the City. She applauded the KES for the work that they have done since being appointed in mid December. She relayed the history of the KES offer to the City having been given to City Manager Drathman on February 6th, that they had asked to make a formal presentation to the City Council that was denied and that they have desired the opportunity to explain their offer and plans. The KES has offered a one year contract for continuation of services as has been offered in the past by the City, and because of the uncertainty of the annexation issue it does not seem logical to plan further. She emphasized that the KES is working on the Borough budget deadline that is April 13th, with an absolute deadline of April 20th, interjecting that KES will need some time to review and consider the City's response. Ms. Martin asked the City to come back with an offer or a response this evening, if at all possible.

Dr. William Marley, Salt Water Drive water and sewer local improvement district (LID), encouraged and urged the Council to adopt Resolution 01-21. He thanked the Council for bringing this matter forward and voiced his opinion that this is a good proposal, 50% property owner share and 50% city share. He voiced a concern regarding the ninety days, inquiring if new LIDS can come in during that period. He was advised in the negative and that this is the period of time for property owners to review the update on the current water and sewer LIDs.

Cris Rideout encouraged the City Council to look at the KES proposal and that this is an opportunity to help make an excellent fire department even better. He noted that the KES Board has been working real hard to implement their ideas, on the budget and funding. He suggested that the whole community could really benefit from working together on this. He reiterated his comment that it is appropriate for the Council to be working on these water issues since water is a critical thing. He commented about the current water problems in the north west. He encouraged the Council to continue working on these things for the benefit of the City and the community. He offered his and his neighbors assistance to work with the City to protect the City's watershed.

Gil Mayforth voiced his personal support for the work of the KES Board on the fire service area and the comments made here in the previous weeks by Mary Griswold.

RECONSIDERATION

CONSENT AGENDA

(Items listed below will be enacted by one motion. If separate discussion is desired on an item, that item may be removed from the Consent Agenda and placed on the Regular Meeting Agenda at the request of a Councilmember.)

A. Homer City Council regular meeting unapproved minutes of March 27, 2001. Recommend approval.

B. Ordinance 01-13(S), Of the City Council of Homer, Alaska Amending Homer City Code 3.16.080, Local Bidder Preference, Establishing a Preference for Award of Contracts to Local Bidders. Yourkowski. Recommend adoption for Introduction and First Reading 04/09/01, Public Hearing 04/23/01, Second Reading 04/23/01.

Memorandum from City Manager as backup and Councilmember Ladd's suggestion.

C. Ordinance 01-16, Of the City Council Amending Homer City Code Chapter 14.08 to State the Authority of the City Council to Limit or Terminate the Sale of Water for Export or Consumption Outside the City's Certificated Water Service Area. Mayor. Kranich. Yourkowski. Recommend adoption for Introduction and First Reading 04/09/01, Public Hearing 04/23/01, Second Reading 05/14/01.)

D. Ordinance 01-17, Of the City Council of the City of Homer, Alaska Amending Homer City Code Sections 3.16.040 and 3.16.070, Procurement. Finance. City Clerk. Recommend adoption for Introduction and First Reading 04/09/01, Public Hearing 04/23/01, Second Reading 04/23/01.

E. Resolution 01-24, Of the Homer City Council Amending the Council's Operating Manual, Committee of the Whole Procedures. Fenske. Recommend adoption.

F Memorandum 01-24, from Mayor Cushing, Re: Appointment of Sue Coble to the Library Advisory Board. Recommend confirmation.

G. Memorandum 01-25, from City Clerk, Re: Liquor License Renewal, Beverage Dispensary - Tourism for the Beluga Lake Lodge. Recommend approval.

H. Memorandum 01-26, from Mayor Cushing, Re: Appointments of Leonard Miller and Alray Carroll to the CIAA Board. Recommend confirmation.

I. Memorandum 01-27, from City Clerk, Re: Re: Request for Executive Session, Pursuant to AS 44.62.310(c)(1), Matters, the immediate knowledge of which would clearly have an adverse effect upon the finances of the public entity. Fire Service Area and Potential Real Estate Transactions. Recommend approval and conduct under New Business.

FENSKE/LADD - MOVED FOR THE ADOPTION AND/OR APPROVAL OF THE RECOMMENDATIONS OF THE CONSENT AGENDA.

VOTE: YES: FENSKE, LADD, YOURKOWSKI, MARQUARDT, KRANICH, CUE.

Motion carried.

VISITORS

ANNOUNCEMENTS/ PRESENTATIONS/ BOROUGH REPORT/ COMMISSION REPORTS

Borough Assemblyman Martin gave a brief report regarding the proposed private prison in the Kenai area and HB 149. She also reported on the Borough accepting $7.5 million from the federal government for Spruce Bark Beetle mitigation. The road right-of-ways will be the first area to be addressed.

There was a brief question and answer period.

City Manager Drathman introduced recently hired City Planner Ken Miller. Mr. Miller stated that he is delighted to be in Homer and looks forward to working with the Mayor and Council.

PUBLIC HEARING(S)

A. Ordinance 01-12, Of the City Council of Homer, Alaska Authorizing a Right-of-Way Acquisition on Parcel 179-061-01 to the Alaska Department of Transportation and Public Facilities for the East Road Rehabilitation Project in the Amount of $1,575.00, Accepting the Purchase Price and Allocating it to the Land Bank Fund, and Authorizing the City Manager to Execute the Appropriate Documents Including the Memorandum of Agreement, Warranty Deed and Purchase Voucher. City Manager. Fiscal Note: $1,575 to Land Bank if Ordinance 01-11(A) is adopted. (First Reading 03/27/01, Public hearing 04/09/01, Second reading 04/09/01.

There was no public testimony.

B. Ordinance 01-14, Of the City Council of Homer, Alaska Accepting and Appropriating An Alaska Highway Safety Office Grant in the Amount of $5,103.00 for the Purchase of Portable Breath Test Devices and Authorizing the City Manager to Execute the Appropriate Documents. City Manager. HPD. Fiscal Note: Revenue Acct: 151.4520.739 and Expenditure Acct: 151.5901.739. (First Reading 03/27/01, Public hearing 04/09/01, Second reading 04/09/01)

There was no public testimony.

C. Ordinance 01-15, Of the City Council of Homer, Alaska Accepting and Appropriating an Alaska Department of Safety Highway Safety Grant in the Amount of $20,304.00, Appropriating the City's Match of $16,590.85 to Provide for Traffic Safety for Summer Coverage and Authorizing the City Manager to Execute the Appropriate Documents. City Manager. HPD. Fiscal Note: Revenue Acct: 100.4514.030 and Expenditure Acct: 100.5105.160. (First Reading 03/27/01, Public hearing 04/09/01, Second reading 04/09/01.)

There was no public testimony.

ORDINANCE(S)

A. Ordinance 01-11(A), Amending Title 18 of the Homer City Code to Require an Inventory and Classification of City Real Properties, to Create a Homer Land Bank and Designate Real Property Classified for Disposal as Homer Land Bank Property, and to Delete the Lease Negotiating Committee and Establish a Land Management Committee; and Further Amending Chapter 3.05 of the City Code to Create in the General Fund a Land Bank Fund to Receive Proceeds from the Sale of Homer Land Bank Properties and Requiring that such Funds are to be used only for the Acquisition of Real Property or Improvements Necessary to Protect the Property or its Value. Reviewed by Council and Advisory Bodies. City Manager (First Reading 03/12/01, Public Hearing 03/27/01, Second Reading 04/09/01).

FENSKE/KRANICH - MOVED FOR THE ADOPTION OF ORDINANCE 01-11(A) BY READING OF TITLE FOR SECOND AND FINAL READING.

Council advised that there are some areas of the ordinance that need to be cleared up and clarified regarding real property, use of funds for buildings, where funds are allocated if a building is sold on City property and if the land bank should be solely for vacant land/parcels. A similar ordinance will be back to the Council in about thirty days, or so, after input/review to the City Manager and the City Attorney .

VOTE: NO: CUE, FENSKE, LADD, YOURKOWSKI, MARQUARDT, KRANICH.

Motion failed.

B. Ordinance 01-12, Of the City Council of Homer, Alaska Authorizing a Right-of-Way Acquisition on Parcel 179-061-01 to the Alaska Department of Transportation and Public Facilities for the East Road Rehabilitation Project in the Amount of $1,575.00, Accepting the Purchase Price and Allocating it to the Land Bank Fund, and Authorizing the City Manager to Execute the Appropriate Documents Including the Memorandum of Agreement, Warranty Deed and Purchase Voucher. City Manager. Fiscal Note: $1,575 to Land Bank if Ordinance 01-11(A) is adopted. (First Reading 03/27/01, Public hearing 04/09/01, Second reading 04/09/01.)

MARQUARDT/KRANICH - MOVED FOR THE ADOPTION OF ORDINANCE 01-12 BY READING OF TITLE.

City Manager Drathman requested, since Ordinance 01-11(A) failed, that all references to the land bank be deleted as follows: Delete the phrase "and allocating to it to the Land Bank" from the title of Ordinance 01-12, delete the seventh whereas clause and in section two delete everything after the word "accepted" and before the semi colon and the word "and".

MARQUARDT/FENSKE/LADD - MOVED TO AMEND ORDINANCE 01-12 BY DELETING ALL REFERENCES TO THE LAND BANK AS NOTED BY THE CITY MANAGER.

VOTE:(primary amendment) YES: MARQUARDT, KRANICH, CUE, FENSKE, LADD, YOURKOWSKI.

Motion carried.

VOTE:( main amended motion) YES: KRANICH, CUE, FENSKE, LADD, YOURKOWSKI, MARQUARDT.

Motion carried.

C. Ordinance 01-14, Of the City Council of Homer, Alaska Accepting and Appropriating An Alaska Highway Safety Office Grant in the Amount of $5,103.00 for the Purchase of Portable Breath Test Devices and Authorizing the City Manager to Execute the Appropriate Documents. City Manager. HPD. Fiscal Note: Revenue Acct: 151.4520.739 and Expenditure Acct: 151.5901.739. (First Reading 03/27/01, Public hearing 04/09/01, Second reading 04/09/01.)

CUE/KRANICH - MOVED FOR THE ADOPTION OF ORDINANCE 01-14 BY READING OF TITLE..

There was no discussion.

VOTE: YES: YOURKOWSKI, MARQUARDT, KRANICH, CUE, FENSKE, LADD.

Motion carried.

D. Ordinance 01-15, Of the City Council of Homer, Alaska Accepting and Appropriating an Alaska Department of Safety Highway Safety Grant in the Amount of $20,304.00, Appropriating the City's Match of $16,590.85 to Provide for Traffic Safety for Summer Coverage and Authorizing the City Manager to Execute the Appropriate Documents. City Manager. HPD. Fiscal Note: Revenue Acct: 100.4514.030 and Expenditure Acct: 100.5105.160. (First Reading 03/27/01, Public hearing 04/09/01, Second reading 04/09/01.)

KRANICH/CUE - MOVED FOR THE ADOPTION OF ORDINANCE 01-15 BY READING OF TITLE ONLY.

Councilmember Kranich applauded the staff for working to obtain grants and funding.

Councilmember Marquardt asked if this funded a new officer and was advised that it does not.

VOTE: YES: LADD, YOURKOWSKI, MARQUARDT, KRANICH, CUE, FENSKE.

Motion carried.

CITY MANAGER'S REPORT

A. City Manager's Report

B. Bid Report from City Clerk

C. Game Permit Filings

D. Record report.

City Manager Drathman advised that there are grant funds for the Jack Gist Park Drainage Improvements, which have been received , although the funding from the Kenai Peninsula Borough has not been received.

Mayor Cushing called for a recess for 8:24 p.m., reconvening the meeting at 8:32 p.m.

COMMITTEE REPORT

A. Beach Policy Task Force, March 8 and March 20, 2001.

Councilmembers and Co Chairs Cue and Yourkowski gave an over view of the initial recommendations for areas 1-5. The Task Force plans to complete review and make recommendations for areas 6-8. Final recommendations should be to the Council for the April 23rd meeting.

Additional suggestions by the Council included: Remove the dumpster from Bishop's Beach and replace it with trash barrels. Provide for handicap vehicular access.

There is only one proposed ordinance change and that is to delete the reference to Whitney Fidalgo Access Road. Proposed enforcement will be done through signage and education regarding the current state and local laws.

Some areas of concern are: The Fish and Wildlife property and how far this goes into the tidal flats. Storm berm protection. Pedestrian Priority Zones. Private owner access. Beluga Slough ownership recognition and that the owner of 17 acres of the Beluga Slough area has been very cooperative, fair and favorable and needs to be recognized as such.

B. Road Standards Committee

Councilmember and Chair Marquardt gave a brief report regarding the Committee meeting of April 2nd and noted the work on the Transportation Study. He commented on the Committee request regarding the agenda and/or the scope of work for the proposed May meeting so that the Committee may have input into how this study will proceed. There are some issues in the 1984 Master Roads and Streets plan that have been addressed. Those issues still needing to be addressed will be prioritized and hopefully covered by this new Comprehensive Transportation Study that will take place over the next six months.

There was a suggestion that the Committee look at roads that may be annexed and that consideration be given to appointing someone to the Committee that would be familiar with those roads. Other suggestions were to consider street lighting, hazardous bus routes and sidewalks on the hazardous bus routes

C. Water and Sewer Standards Committee Synopsis of February 22, 2001.

Councilmember and Chair Fenske gave a short dissertation in support of Resolution 01-21 and what this assessment methodology amendment will entail. This creates a mechanism that recognizes the formation of past LIDs and assesses these at 50% property owner share rather than 25% and the future formation of LIDs would be assessed at 75% property owner share. He elucidated the proposed schedule of constructing the nine current LIDs, provided these are approved by the property owners. Increasing the assessments will facilitate sooner and more construction.

Finance Director Baugh informed the Council regarding special bonding, how the fund will operate for constructing these LIDs and that the property owner assessments will be used to make the bond payments.

There was an extensive discussion and support voiced regarding Resolution 01-21 and the assessment methodology increases for water and sewer districts.

PENDING BUSINESS

NEW BUSINESS

A. Executive Session, Pursuant to AS 44.62.310(c)(1), Matters, the immediate knowledge of which would clearly have an adverse effect upon the finances of the public entity. Fire Service Area and Potential Real Estate Transactions.

Mayor Cushing recessed the regular meeting to Executive Session at 9:20 p.m. The Mayor and Council returned to the Council Chambers at 10:15 a.m. Mayor Cushing reconvened the regular meeting at 10:23 p.m.

Councilmember Marquardt stated that the Council met in Executive Session to discuss the contract negotiations between the City of Homer and KES. The City Manager was instructed to continue discussions with Mayor Bagley with the intent to reach a final agreement as soon as possible. Also in Executive Session the Council discussed the lease of the intermediate school building and a response and recommendation to the University will submitted the City Manager.

RESOLUTIONS

A. Resolution 01-21, Of the City Council of the City of Homer, Alaska Amending the Assessment Methodology for Pending Water and/or Sewer Improvement/Assessment Districts to 50% Property Owner Share and 50% City Share of the Total Project Costs and Amending the Assessment Methodology for Future Water and/or Sewer Improvement/Assessment Districts to 75% Property Owner Share and 25% City Share of Total Project Costs. City Manager. Water and Sewer Committee. Postponed on March 27, 2001.

FENSKE/CUE - MOVED FOR THE ADOPTION OF RESOLUTION 01-21 BY READING OF TITLE ONLY.

There was no additional discussion. Refer to comments under Committee reports.

VOTE: YES: FENSKE, LADD, YOURKOWSKI, MARQUARDT, KRANICH, CUE.

Motion carried.

B. Resolution 01-23, Of the City Council of Homer, Alaska Amending the Port and Harbor Advisory Commission Bylaws. City Clerk. Recommend adoption.

CUE/MARQUARDT - MOVED FOR THE ADOPTION OF RESOLUTION 01-23 BY READING OF TITLE.

There was a lot of discussion regarding teleconferencing and if any of the Commissions needed this procedure. It was noted that Council had approved the addition of Teleconferencing procedures to the Parks and Recreation Bylaws; however, this may be deleted. Council discussed the possibility of eliminating teleconferencing altogether. The next Port/Harbor meeting is scheduled for April 25, 2001. Council will review the wisdom of Council utilizing teleconferencing.

The Port Harbor Bylaw amendment includes the appointment of an alternate. The Council discussed incorporating the same language for all of the Commissions for alternate members. Parks and Recreation's alternate is specific to the member, whereas, the Port/Harbor alternate is an at large appointment.

FENSKE/CUE/KRANICH - MOVED TO POSTPONE FOR TWO MEETINGS. (MAY 14, 2001.)

VOTE: YES: KRANICH, CUE, FENSKE, LADD, YOURKOWSKI, MARQUARDT.

Motion carried.

COMMENTS OF THE AUDIENCE

There were no audience comments.

COMMENTS OF THE CITY ATTORNEY

City Attorney Tans was not present.

COMMENTS OF THE CITY CLERK

City Clerk Calhoun had no comment.

COMMENTS OF THE CITY MANAGER

City Manager Drathman commented on welcoming the new City Planner and advised that the new Library Director will hopefully be here by the next Council meeting.

COMMENTS OF THE MAYOR

Mayor Cushing advised that Councilmember Ladd has been working on a steep slope resolution that will be to the Council at the next meeting and may include another Task Force. He told City Planner Miller that he looked forward to working with him and stated that, although short handed, Beverly Guyton has done a great job. Mayor Cushing voiced his enthusiasm to work with Mr. Miller on some of his ideas and experiences. The Mayor reported on attending the statewide Youth Court Conference in Kenai, noting that the conference organizer and most of the speakers were from Homer.

COMMENTS OF THE CITY COUNCIL

Councilmember Fenske thanked every body for wishing him well during his stay at the hospital. He stated that it is great to have the doctors and the facility to accommodate the quality of medical staff that can perform these types of surgeries such as his knee replacement. He complemented the physical therapy department for their organization, adding that the food was good.

Councilmember Cue commented on the economic benefit of the Shorebird Festival, this year May 12 and 13, and about those who depend on it for their livelihood. She encouraged people to attend the Beach Policy Task Force meeting on Thursday, April 12th and help support the recommendations that will be forwarded to the Council. She pointed out that the Beach Policy Task Force is addressing things that make the Shorebird Festival a success, such as the protection and preservation of the beach habitat areas for shorebirds. She commented on the proposed prison in the Kenai area, HB 149 and privatization of prisons. Ms. Cue encouraged the legislature and the Kenai Peninsula Borough Assembly to make sure that the number one priority for the prison is rehabilitation of the prisoners and not revenue.

Councilmember Kranich thanked the Council for the work on the issues tonight. He advised the public that there was a lot of deliberations during the Committee of the Whole meeting earlier today, also a public meeting. He emphasized that Council does not take these Consent Agenda matters lightly and scrutinizes these closely.

Councilmember Marquardt welcomed City Planner Miller to the Hamlet by the Sea and encouraged staff and the residents of Homer to make him feel welcomed.

Councilmember Ladd welcomed the City Planner to Homer. He commented on the Youth Court Conference and that two students from West Homer Elementary, Nate Gallagher and Erica Gavenus, did an excellent job presenting their process, and in reflecting the values and demeanor expected in the Homer Community. He thanked Judge Neville for her presentation at the Youth Court and noted that the Homer High Band was also there. Mr. Ladd expressed his opinion that Ordinance 01-16 is a very healthy compromise, respects everything that he was looking for, that through Council action there still has to be findings and that it provides the City with the right to cap if necessary. He commented on steep slope issue and that he felt this matter urgent since the City is considering the location for the placement of the water tank. He voiced concern regarding the Homer soils, the need to protect the environment and still allow development. As an example he cited the area above the hospital where there was no ordinance or process for the development of the slope and voiced his hope that this not happen again. He interjected that there are some items on the Consent Agenda that are not being taken lightly, such as local bidder preference. He urged people to come and testify regarding the local bidder preference ordinance so that the Council can come to closure on this matter. He voiced his enjoyment of this meeting and his pleasure in commenting about the Youth Court.

ADJOURNMENT

There being no further business to come before the Council the meeting was adjourned at 10:57 p.m. The next regular meeting is scheduled for April 23, 2001 at 7:30 p.m. The Committee of the Whole is scheduled for April 23 at 4 p.m. A Special Meeting to award the Small Boat Harbor Repairs and Renovation Contract is scheduled for April 30, 2001 at 7:30 p.m. All of these meetings are scheduled for the Homer City Hall Council Chambers, located at 491 E. Pioneer Avenue, Homer, Alaska.

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MARY L. CALHOUN, CMC, CITY CLERK