Session 02-15, a Regular Meeting of the Homer City Council was called to order at 7:30 p.m. by Mayor Jack Cushing at the Homer City Hall Council Chambers located at 491 E Pioneer Avenue, Homer, Alaska, and opened with the Pledge of Allegiance.

The Council's Committee of the Whole met from 4:08 p.m. to 6:00 p.m., the regular meeting agenda items and survey question development were the items of discussion.

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

STAFF: CITY MANAGER DRATHMAN

CITY CLERK CALHOUN

FIRE CHIEF PAINTER

LIBRARY DIRECTOR HILL

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 agenda was approved by consensus of the Council, with the deletion of Resolution 02-50 and Memorandum 02-39, the addition of Ordinance 02-25 under Ordinances as Item A., Aderhold letter regarding Memorandum 02-39 and corrected Memorandum 02-36.

PUBLIC COMMENTS UPON MATTERS ALREADY ON THE AGENDA

Frank Griswold stated that he spent all day preparing to talk about the animal shelter site and would have felt pretty bad if he could not have talked about it and that he wanted to read a brief statement into the record:

“I strongly support the City’s efforts to build a new animal shelter, just as strongly I oppose the site proposed in Memorandum 02-39. Paragraph two of Mr. Drathman’s memo states, quote, Mr. Eberly is inventoring all DOT non aviation property in the area for possible sale to the City. We are familiar with most of the property in the area and it is felt that these are non suitable for one reason or another. Now, I would like to know the specific reasons why these DOT non aviation properties have been deemed unsuitable as a site for an animal shelter. I would also like to know in what way these non aviation properties differ from the DOT property previously deemed to be suitable for this use. In paragraph four of the memo it states, quote, we believe these properties, meaning lot nine and lot ten, can be used for the shelter and still be available for trails slash park use, should the City choose to do so. This is totally unrealistic. Who would want to use a trail or park situated on the same lot as a howling dog pound. It would also be cruel to the caged animals to have to watch park and trail activities without being able to participate. Paragraph five states, quote, because no clear use of these properties has been identified nothing would preclude the proposed use, unquote. But placing an animal shelter right in the heart of the central business district is not compatible with either the Comprehensive Plan or the Homer Zoning Code. Under the caption, land use, relating to the commercial business area, the updated Comprehensive Plan, page two, states the following goals, quote, improve the attractiveness and usability of the business core to encourage use of the area, also, guide growth and development in areas planned or zoned central business district to provide a centrally located business slash commercial area and focal point for the community, also, develop streets, utilities, bicycle paths and green belts within the City. It also says, the City in cooperation with private business owners shall research and evaluate steps involved in creating and enabling the town square to become a reality. At page seven the updated Comprehensive Plan identifies objectives for parks and recreation, quote, protect and preserve unique scenic and natural areas such as green belts for the present and future enjoyment of Homer residents and visitors. An animal shelter is not a desirable focal point for the community and putting one at this location severely jeopardizes the green belt, which is so vital to the town square project. I’ve also heard rumors that the new library may be located in this area, this would not be in harmony with that use. Homer City Code 20.28.010(a )states as follows regarding kennels, no kennel shall be maintained or operated in such a manner as to constitute a nuisance to persons owning or occupying land in the vicinity of land on which the kennel facility is operated or maintained. This proposed site for the animal shelter is adjacent to a residential neighborhood and will constitute a nuisance to the entire Glacierview Subdivision. While the City of Homer may decide to ignore its own Zoning Code it is note worthy that no private citizen would be allowed to operate an animal shelter or kennel with three or more animals in the central business district (CBD). This use is not allowed in the CBD as a permitted use and isn’t even allowed as a conditional use. This use is allowed in the General Commercial 2 (GC2) zoning district as a conditional use under the provisions of HCC 21.50.030(h) and this is where the new animal shelter should be located. According to the Updated Comprehensive Plan the GC2 has 121 lots and a total land mass of 1,146 acres. While wet lands do exist on some of these lots many portions of these properties are not affected by wet lands and are available for normally permitted uses. 31 of the vacant lots are not wetlands they occupy 71 acres and have an assessed value of $680,000.00 with an average value of $10,000.00 of which only $190,000.00 is taxable. I urge the Council to reject the recommendations of Memorandum 02-39 and find a home for the Homer Animal Shelter in the General Commercial 2 zoning district where it will comport with both the Comprehensive Plan and the City Zoning Code. Thank you for hearing my concerns.”

Mayor Cushing told Mr. Griswold that it seems that he is kind of in line with the Council discussions today and that the City Manager feels it is important to keep the options out there for consideration in fairness to the Animal Shelter people. He advised that this was done earlier today, during the Committee of the Whole and it does not seem like this location for the Animal Shelter is going very far.

Steve Zimmerman commented on Resolution 02-24, revisions to the Property Management Manual Procedures and page 215 in the Council packet. He stated that the first change in it that he does not care for is the first line that does not say if all leases are identified as renewable or just those coming up within a one year term. Following that on the last line on that page, Leases identified as Renewable, says within one year of coming to term inclusive of time lines identified the Council will determine if it is in the best interest to continue leasing. That means that it could be held up right up to within a month of the “thing” actually coming to term. He voiced his belief that the wording on that should be, “not less than one year of the lease coming”, and that it has to have an answer of renew ability so that people can plan. He pointed out that this is what “you guys” are here for, planning, and that other people have to be allowed to plan as well and not come in that quick on them. The other issue is on page 217, a different part of the Resolution, the selection committee will

be formed. He stated that when this was first written in 1995 in the leasing policy the lease committee would do that work and then in 98-15 it was changed to a selection committee, interjecting that some of the Council may have been on there at that time. If “they” saw fit to change it then why change it back, it’s taking some of the measures out some of the check out of it. Mr. Zimmerman voiced a confusion over why the Council would want to do that, streamlining everything back to where one person can do all the work and encouraged the Council to keep checks and balances in and this is a good place to do that. He suggested that if the Council wants to throw this out then put something else in to keep some checks and balances into this so that it is not always just in the hands of one or two people doing the leasing policy. He acknowledged that this may not be acted upon this week.

Mayor Cushing provided some back ground that this was discussed during the Committee of the Whole and may either be postponed or voted down and that the City Manager is making a draft for the Council to consider at least an hour at the next Committee of the Whole, two weeks from today.

Steve Zimmerman stated that he is happy to see something happening in that direction.

Michael Hawfield, Director of the Pratt Museum, spoke in favor of the adoption of Resolution 02-49, which, in addition to recognizing all the many things that the Pratt Museum does in the community and has done for almost 35 years, considers putting the Pratt Museum as a line item in the annual budget. This Resolution is very much in keeping with all other Resolutions and actions of the Council since 1967, when the Pratt Museum was created as a joint venture of the City and the Homer Society of Natural History. Since that time the City has invested heavily in the Museum, its infrastructure as well as operating costs and in turn the Museum provides a professional level care of large collections that represent the heritage of this community, their research collections that are used both for school children doing projects as well as professionals who undertake all manner of projects in the community and everyday folks who want to learn more about their neighborhoods, families and community. All of this takes resources and the City has been very generous over the years in making sure that this museum is funded in its infrastructure. The Resolution before the Council is a continuation of that commitment and the specific mention of line item makes it stand a little different than previous Resolutions. In the Museum’s view this has the virtue of allowing the Museum to be held very strictly accountable for what it does in having to justify its place on the annual budget as a specific piece that comes before the Council each year. Council has the opportunity and the Museum has the obligation to provide an accounting of all that it does; programs, services provided to the City and larger community and in effect the return on the dollar invested by the City. These are not feel good items these are real services paid back to the City for investments by the City. The Museum believes that identifying the Pratt Museum as a singular item on the budget would have the advantage of making very clear exactly where this community resource stands with respect to public accountability. He stated that the Museum is very pleased that this Resolution is before the Council and voiced hope for a positive consideration. He offered to answer any questions that the Council might have about the Museum and its activities.

Janet V. O’Meara, member of the Board of Directors of the Pratt Museum, stated that she has enjoyed the Pratt Museum since she first visited this community in 1968 and that the Museum has

grown and gotten better year by year, much with the help of City funds. The City has recognized in the past the very special relationship that it has with the Pratt Museum. The Pratt Museum is the historian and the history keeper for the City of Homer and the community of the lower Kachemak Bay and Kenai Peninsula. She expressed her support for Resolution 02-49 and particularly, her support of the Pratt Museum being a line item on the City budget and that this continues the special relationship that the Pratt Museum has enjoyed with the City for all of the reasons laid out in the whereases of the Resolution. The Pratt Museum is a special organization and it has enjoyed a special relationship with the City.

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.)

Mayor Cushing noted that Items J. and O. had been pulled under agenda approval.

Councilmember Kranich requested that Item I. be placed under Resolutions (Item B.) and Items. L. and P. be placed under New Business as Items A. and B.

A. Homer City Council unapproved meeting minutes of July 9 and July 22, 2002. Recommend approval.

B. Ordinance 02-32, Of the City of Homer Amending Chapter 9.04 of the City Code to Provide for a Partial Exemption from Municipal Property Taxes on Residential Property Owned and Occupied by Certain Volunteers Who Provide Fire Fighting or Emergency Medical Services to the City. City Manager. Fiscal note: $50.00 per $100,000.00 assessed value of Fire Fighter/EMS volunteer’s residence. There are presently 42 active volunteers m/l and about 21 m/l are City residents. Effective date of the Ordinance is January 1, 2003, this will be a part of the 2003 budget process. Recommend introduction and conduct Public Hearing and Second Reading on August 26, 2002.

Memorandum from City Manager as backup.

C. Ordinance 02-33, Of the City of Homer, Amending Homer City Code Section 1.04.030, Definitions, Repealing Subsections q. Permanent Maintenance and cc. Winter Maintenance, Amending Subsections s. Road and v. Street and Amending Homer City Code Section 11.04.055, Official Maintenance Map. City Manager. Recommend introduction and conduct Public Hearing and Second Reading on August 26, 2002.

D. Ordinance 02-34, Of the City Council of Homer, Alaska Accepting and Appropriating a FY 2003 Legislative Grant from the State of Alaska DCED for the Purpose of Fire Packs in the Amount of $150,000.00 and Authorizing the City Manager to Execute the Appropriate Documents. City Manager. Fiscal Note: Revenue and Expenditure Acct. 151.736. Recommend introduction and conduct Public Hearing and Second Reading on August 26, 2002.

E. Ordinance 02-35, Of the City Council of Homer, Alaska Accepting and Appropriating a FY 2003 Legislative Grant from the State of Alaska DCED for the Purpose of Broom Truck in the Amount of $50,000.00 and Authorizing the City Manager to Execute the Appropriate Documents. City Manager. Fiscal Note: Revenue and Expenditure Acct. 151.746. Recommend introduction and conduct Public Hearing and Second Reading on August 26, 2002.

F. Ordinance 02-36, Of the City Council of Homer, Alaska, Appropriating $37,000.00 for an Upgrade of the Port/Harbor Secom Twenty Year Old Computer Operating System and Site Specific Applications. City Manager. Fiscal Note: Transfer from Port/Harbor Operating Fund of $37,000.00 to Revenue and Expenditure Acct. 415-380. Recommend introduction and conduct Public Hearing and Second Reading on August 26, 2002.

Memorandum from City Manager as backup.

G. Ordinance 02-37, Of the City Council of Homer, Alaska, Accepting and Appropriating a FY 2003 Capital Project Matching Grant from the State of Alaska DCED for the Purpose of Public Library in the Amount of $101,597.00, Appropriating the City Match of $31,508.00 from the General Fund and Authorizing the City Manager to Execute the Appropriate Documents. City Manager. Fiscal Note: Transfer from General Fund of $31,508 to Revenue and Expenditure Acct. 151-723 with Grant. Recommend introduction and conduct Public Hearing and Second Reading on August 26, 2002.

H. Resolution 02-48, Authorizing the City Manager to Enter into an Agreement with the Kenai Peninsula Borough to Provide Fire and Emergency Medical Services to Kachemak Emergency Service Area. City Manager. Fiscal Note: July 1-December 31, 2002, 6 months Revenue $95,800.00 plus additional $3,368.00 for the first six months January 1-June 30, 2002 for Miller’s Landing

Recommend adoption.

Memorandum from the City Manger as backup.

I. Resolution 02-49, Of the City Council of Homer, Alaska Recognizing the key Economic and Cultural Services Provided the Community by the Pratt Museum and if the City of Homer Allocates Funds to Non Profits Organizations in Future Budget Cycles, a Separate Line Item Appropriation for the Pratt Museum will be established. Mayor/Ladd. Recommend adoption.

Placed under Resolutions as Item B.

J. Resolution 02-50, Authorizing the Acquisition of Certain Equipment and the Execution of an Equipment Lease/Purchase Agreement with the Wells Fargo Bank Alaska. City Manager. Fiscal Note: Acct. 100.5607.170, $300,000.00, Appropriated in Ordinance 02-21(S). Recommend adoption.

Pulled under Agenda Approval.

K. Memorandum 02-35, from City Manager, Re: DOT-COH Memorandum of Agreement – Bartlett/Hohe Streets. Fiscal Note: STIP project estimated at $2,040,000.00. Recommend approval.

L. Memorandum 02-36, from City Clerk, Re: Travel Authorization for Mayor Cushing for the Alaska Municipal League/Alaska Conference of Mayors Fall Meeting to be held in Pelican. Fiscal Note: Expenditure from 100.5236 and 5237.101, Costs estimated at $434.50 from Travel and $106.00 for Subsistence. Recommend approval.

Placed under New Business as Item A.

M. Memorandum 02-37, from City Clerk, Re: Liquor License Location Transfer for Save-U-More. Recommend non objection and approval.

N. Memorandum 02-38, from Mayor, Re: Appointments of Emily Swenning as the Economic Development District Second Representative and of Sally Ash as the alternate. Recommend confirmation of both.

O. Memorandum 02-39, from City Manager, Re: Location of Homer Animal Shelter. Recommend approval.

Pulled under Agenda Approval.

P. Memorandum 02-40, from Councilmember Ladd, Re: Community Survey. Recommend approval.

Placed Under New Business as Item. B.

Q. Memorandum 02-41, from City Manager, Re: Federal Express Cargo - Homer Airport Terminal Lease. Fiscal Note: Annual Revenue $9,323.40. Recommend approval.

R. Memorandum 02-42, from City Manager, Re: Lease Renewal - UAA/KPC - Old Intermediate School. Recommend approval.

FENSKE/YOURKOWSKI - MOVED FOR THE APPROVAL AND OR ADOPTION OF THE RECOMMENDATIONS OF THE CONSENT AGENDA AS READ.

VOTE: (Items. A-H, K, M, N, Q and R.) YES: NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

VISITORS

ANNOUNCEMENTS/PRESENTATIONS/BOROUGH REPORT/COMMISSION REPORTS

Mayor Cushing reported on the Eagle Honor Court scheduled for August 19th at the Homer Methodist Church at 7 p.m. for Van Patrick Hawkins and William Spike Bower, IV. He encouraged the Council to attend, noting that he will be there on the Council’s behalf.

Mayor Cushing advised the Council that he has received a book on the projects that the Minerals Management Service is conducting, 2003 and 2004, on all their off shore lease sales and that this will be in his office for review and information. He reported that there are millions of dollars going into these studies and that most are on the effects of oil and gas and some are purely technical studies on how to build pipelines.

PUBLIC HEARING(S)

ORDINANCE(S)

A. Ordinance 02-25, Of the City of Homer, Amending the Homer City Code to Add Chapter 18.07, Requiring Funding for Works of Art in Projects for Construction, Remodeling and Renovation of Certain Public Facilities. Yourkowski. (First Reading 05/28/02, Public Hearing 06/10/02, and Second Reading Postponed on 06/10/02 to first meeting in July and with an additional Public Hearing. Public Hearing 07/09/02 and Second Reading directly after public testimony, Second Reading tabled on 07/09/02, Taken from the table on 08/12/02 under agenda approval.)

YOURKOWSKI/CUE - MOVED TO TAKE ORDINANCE 02-25 FROM THE TABLE.

VOTE: YES: NON OBJECTION UNANIMOUS CONSENT.

Motion carried.

Councilmember Yourkowski thanked everyone for allowing him to bring this Ordinance up again and voiced his hope that everyone had read the public testimony, wherein there were some very good points that were made.

MAIN MOTION IS ON THE FLOOR AS LAID ON THE TABLE ON JULY 9, 2002.: CUE/FENSKE - MOVED THE ADOPTION OF ORDINANCE 02-25 BY READING OF TITLE FOR SECOND AND FINAL READING.

LADD/KRANICH - MOVED TO AMEND ON LINE 78 TO CHANGE $50,000 to $250,000. (Amendment to 18.07.030, Art funding requirements for public buildings and facilities, paragraph a.)

It was noted that the $250,000.00 is how State Statute reads and is what the Municipality of Anchorage has in their Code.

VOTE: (primary amendment 1.) YES: MARQUARDT, KRANICH, CUE, FENSKE, LADD, YOURKOWSKI.

Motion carried.

18.07.030(a) now reads: Plans and specifications for the original construction, remodeling or renovation of municipal buildings and facilities resulting in the proposed capital expenditures exceeding the sum of $50,000 $250,000 shall contain and provide for the inclusion of works of art of a value of one percent of the total cost of the construction, remodeling or renovation project. All appropriations for capital improvements falling within the provisions of this chapter shall be deemed to include funding to implement the requirements of this section.

LADD/KRANICH - MOVED TO AMEND SAME SECTION LINE 89, ADD. D. FUNDING OF ART PROJECTS FOR CAPITAL EXPENDITURES WILL BE CAPPED AT $40,000. ART PROJECTS FOR CAPITAL EXPENDITURES EXCEEDING $4,000,000 WILL NOT BE GREATER THAN $40,000 UNLESS FUNDING BEYOND $40,000 IS FROM PRIVATE CONTRIBUTIONS. (Added to 18.07.030.)

Council discussed the cap some pros and cons, the cap is on what the City will be contributing, but does not cap private contributions. The $40,000 could be used to obtain grants for the arts projects. There was discussion that the Council could approve expenditure of more than $40,000, depending on the project, work of art etcetera.

Mayor Cushing called for a recess at 8:22 p.m. and reconvened the meeting at 8:31 p.m.

Discussion ensued regarding the cap and concern was expressed about the cap delegating that funding as inferior to the overall construction of the building when the 1% of the art should be considered as much a part of the building as any other aspect or elements of the building. A cap degrades the 1% for the arts program. The finest of everything cannot always be afforded, when looking at the overall project sometimes there are less expensive items that are overall acceptable and result in a lovely end product. The value of the whole project needs to be assessed and then a decision made from there where the biggest value can be provided for the monies available, it is a matter of economics. It is unknown how many projects over $4,000,000 the City is going to have or how big of a deal this is really going to be.

YOURKOWSKI/LADD - MOVED TO AMEND TO CHANGE THE $40,000 TO $70,000 AND THE $4,000,000 TO $7,000,000.

There was a brief discussion regarding a cap. A statement was made that dollar value does not necessary ensure quality. It was emphasized that the cap is on the money coming from the project funding not an overall cap, in other words, private funds can be added on top of the dedicated amount.

VOTE: (secondary amendment 1 to primary amendment 2.) YES: LADD, YOURKOWSKI, MARQUARDT, KRANICH, CUE, FENSKE.

Motion carried.

KRANICH/CUE - MOVED TO AMEND TO PLACE IN FRONT OF FUNDING ADD WORD MUNICIPAL ON LINE 89.

After some comments the Mayor clarified that the municipal funding means City of Homer funding.

VOTE: (secondary amendment 2 to primary amendment 2.) YES: NON OBJECTION UNANIMOUS CONSENT.

Motion carried.

New Item D. of 18.07.030 now reads: Municipal funding of art projects for capital expenditures will be capped at $70,000. Art projects for capital expenditures exceeding $7,000,000 will not be greater than $70,000 unless funding beyond $70,000 is from private contributions.

VOTE: (primary amendment 2 as twice amended) YES: YOURKOWSKI, MARQUARDT, KRANICH, CUE, FENSKE, LADD.

Motion carried.

LADD/KRANICH - MOVED TO AMEND TO ADD TO WHAT WE JUST AMENDED AN ITEM E. IT READS: PRIVATE FUNDING CONTRIBUTIONS FOR ART PROJECTS IN PUBLIC BUILDINGS IS ENCOURAGED AND THIS FUNDING IS NOT CONSIDERED PART OF THE ONE PERCENT. (Added to 18.07.030.)

Simply, this item states that the City can go beyond the cap if there are private contributions to support it.

VOTE: (primary amendment 3.) YES: NON OBJECTION UNANIMOUS CONSENT.

Motion carried.

LADD/KRANICH - MOVED TO AMEND LINES 112 AND 113 WHERE SEE THE WORDS “CHOSEN OR APPROVED” TO DELETE THOSE WORDS AND PLACE IN THEIR STEAD “SELECTED AND RECOMMENDED TO THE CITY COUNCIL FOR APPROVAL”. (18.07.050 Selection, paragraph a.)

This simply places the City Council as the bottom line, the group responsible for the final approval of the recommendation(s) that come from the jurying group and those regulations are designed by the Public Arts Committee as stated earlier in this Ordinance. The Council are the elected officials that represent the public, always has to weigh the pros and cons, have to face their constituents quite regularly and knows the community and its likes and dislikes. The Council has no desire to be the jurying group. There was concern that this not become political, wherein value may be lost in the essence of the art. If the art were controversial the Council could have it removed, whether or not the Council has the final approval and Council being the final approver could slow down the project.

It was pointed out that under Exemptions it states that, “If it is found by the Public Arts Committee that the inclusion of works of art in any specific project as required by this chapter would not provide any aesthetic benefit to the community or to the principal users of the building or facility, the Committee may recommend to the City Manager that there be granted a waiver from the requirements of this chapter in whole or part. The City Manger shall approve or disapprove the recommendation and so notify the user department.”

Mayor Cushing clarified that the exemption refers to things such as, for example, if a $250,000 pump is installed at the treatment plant a work of art is not required.

VOTE: (primary amendment 4.) YES: KRANICH, FENSKE, LADD, YOURKOWSKI.

NO: CUE, MARQUARDT.

Motion carried.

18.07.050 (a) now reads: Where the construction, creation or commissioning of works of art are to be incorporated in the building or facility or its grounds, such works of art shall be chosen or approved selected and recommended to the City Council for approval by a jury of at least three members consisting of the architect or project designer, a representative of the user department, a representative of the Public Arts Committee and any other persons as may be designated by regulation.

LADD/KRANICH - MOVED TO AMEND LINE 120 TO ADD AFTER THE WORD “REGULATION” ADD “AND RECOMMENDED TO THE COUNCIL FOR APPROVAL”. (18.07.050 Selection, paragraph b.)

This makes the two paragraphs 18.07.050 a and b consistent with each other.

VOTE: (primary amendment 5.) YES: NON OBJECTION UNANIMOUS CONSENT.

Motion carried.

18.070.050(b) now reads: Where there will be an acquisition of existing works of art or the commissioning of works of art which will not be incorporated into the project design, selection shall be made or approved by a jury of at least three members consisting of a representative of the user department, one or more representatives of the Public Arts Committee and other persons as may be designated by regulation and recommended to the Council for approval.

Discussion ensued regarding the City Manager’s involvement.

City Manager Drathman made some suggestions regarding the wording of 18.07.070, Exemptions.

FENSKE/CUE - MOVED THAT WE AMEND THIS TO INCLUDE THOSE SUGGESTIONS.

DELETE, 18.07.060(A) THE CITY MANAGER SHALL ADMINISTER THIS CHAPTER. AND MAKE ITEM B. ITEM A. 18.07.070 EXEMPTIONS. TO ADD AFTER PUBLIC ARTS COMMITTEE ON LINE 129 “OR CITY MANAGER” TO DELETE AFTER COMMITTEE ON LINE 132 OR “MAY BE RECOMMENDED TO THE CITY MANAGER” ADD “OR MANAGER MAY RECOMMEND TO THE CITY COUNCIL”, DELETE PART OF LINE 133, ALL OF LINE 134 AND PART OF LINE 135.

FENSKE/ - CALLED FOR THE QUESTION. NON OBJECTION TO THE CALL FOR THE QUESTION.

Mayor Cushing asked if there were any objections to the Call for the Question, none were expressed.

VOTE: (primary amendment 6.) YES: NON OBJECTION UNANIMOUS CONSENT.

Motion carried.

18.07.060, Program Administration; Public Arts Committee (a) deleted which read: A. The City Manager shall administer this chapter.

18.07.060 (b) now becomes (a) and reads: The City Council shall appoint a Public Arts Committee consisting of seven members. Prior to making appointments, the City Council may solicit nominations from the Pratt Museum, community arts groups, and the public. Appointments will be for two years. Members serve at the pleasure of the City Council.

18.07.070 to read as follows: If it is found by the Public Arts Committee or City Manager that the inclusion of works of art in any specific project, as required by this chapter, would not provide any aesthetic benefit to the community or to the principal users of the building, or facility, the Committee may recommend to the City Manager or City Manager may recommend to the Council that there be granted a waiver from the requirements of this chapter in whole or in part. The City Manager shall approve or disapprove the recommendation and so notify the user department. Any denial of exemption may be appealed to the Homer City Council within working days. The Council shall make the final determination in any disputes arising from the administration of this section.

Councilmember Yourkowski expressed his opinion that the amendments, for the most part, improved the Ordinance. He clarified, just for the record:

“The Committee functions, that I see, are creating regulations for the Council approval, review and updating those regulations, soliciting proposals, making sure these proposals meet criteria, promote the program and public art in general, solicit private donations and apply for grants for public art. So, that will give them a starting point. I just wanted to get that out there so that the Committee does not know what they are supposed to be doing.”

VOTE: (main amended motion) YES: NON OBJECTION UNANIMOUS CONSENT

Motion carried.

CITY MANAGER’S REPORT

A. City Manager’s Report (Tony Hawk Foundation Grant for the Skateboard Park of $10,000, Donation from Frank and Lois Irvin in the amount of $55,833.40, Employment Anniversaries for those hired in August, Snomads donated two new benches for the Fishing Lagoon area.)

B. Games Report.

C. Records Report.

Councilmember Marquardt inquired about the paving for the skateboard park.

City Manager Drathman responded that they are trying to get prices on the paving.

Councilmember Kranich inquired if the spending of the donation to the fire department comes back to the Council for approval or is it solely at the discretion of the fire department.

City Manager Drathman advised that the donation goes into the budget as a gift and goes through the normal budget process on how it is spent. This does not have to come to the Council to accept, expenditure of it does have to come to the Council.

Fire Chief Painter commented that the fire department had received 1/6th of the estate and that Lois Irvin had been a supporter of the fire department for a long time.

Mayor Cushing noted that it is a pleasure to thank all of the donators Tony Hawk Foundation, Frank and Lois Irvin and the Snomads for their donations as listed above. He also read into the record the employees names of those with August employment anniversary dates:

Rusty Cheney 19 years, Steve Dean 14 years, Bonnie Judge 12 years, Dan Gardner 11 years, Scott Elmer 9 years, Susan Gibson 8 years, Kathy Pankratz 8 years, Joe Hamilton 6 years and Carey Meyer 3 years.

COMMITTEE REPORT

A. Road Standards Committee

B. Town Square Working Group

C. Beach Policy Task Force

Councilmember Cue reported that the Beach Policy Task Force has met twice and during their first meeting they took public testimony. On August 24th Councilmember Cue and Mary Lentfer will take photos and make an assessment of the health of the beach area east of the Spit. Input from NERRS and the Center for Alaskan Coastal Studies will be requested. She noted that an annual assessment of beach health is supposed to be done and an evaluation of the City’s implementation of the Beach Policy. Recommendations will be forwarded to the Council. Some public input indicates closing off motorized vehicle access to the beach area east of the Spit. Ms. Cue noted that there has been significant build up of drift wood since the passage of the prohibition on removal of driftwood from the storm berms.

D. Parking Task Force

PENDING BUSINESS

NEW BUSINESS

Mayor Cushing called for a recess at 9:26 p.m. and reconvened the meeting at 9:30 p.m.

A. Consent Agenda Item. L. Memorandum 02-36, from City Clerk, Re: Travel Authorization for Mayor Cushing for the Alaska Municipal League/Alaska Conference of Mayors Fall Meeting to be held in Pelican. Fiscal Note: Expenditure from 100.5236 and 5237.101, Costs estimated at $434.50 from Travel and $106.00 for Subsistence. Recommend approval.

Recommendation: Authorize the Mayor's travel to Juneau/Pelican for the AML/ACoM Fall Conference.

Fiscal Note: Mayor and Council: As of July 24, 2002.

Subsistence - available - $1,095, Budgeted 100.5237.101 (02) : $4,000.

Travel - available $0, Budgeted 100.5236.101(02): $6,000.

KRANICH/CUE - MOVED FOR THE APPROVAL OF THE RECOMMENDATION OF MEMORANDUM 02-36.

Discussion included noting the importance of attending AML conferences, of the Mayor attending the Alaska Conference of Mayors, the importance of keeping abreast of what is going on in the state and that these conferences and sessions are highly advantageous. It was stated that this expenditure is “in line”. Concern was expressed that there is a lack of funds in the line item and that a transfer is needed. Much of the travel had been used for lobbying in Juneau regarding annexation. It was noted that there is actually a negative figure of $800 in the travel line item. Funds need to be transferred to cover the November AML travel expenditures.

City Manager Drathman will look into the transfer issue.

Mayor Cushing commented on the importance of travel for lobbying purposes. He advised that during this trip to this Mayor’s Conference he plans to lobby DOT about the a location for the animal shelter on DOT airport property.

VOTE: YES: NON OBJECTION UNANIMOUS CONSENT.

Motion carried.

B. Consent Agenda Item P. Memorandum 02-40, from Councilmember Ladd, Re: Community Survey. Recommend approval.

KRANICH/LADD - MOVED FOR THE APPROVAL OF THE RECOMMENDATIONS OF MEMORANDUM 02-40.

1. That the draft survey be finalized by City administration and the draft format be approved by the City Council before distribution to the public in final format, and

2. That the survey be completed by community members and survey results be compiled and tabulated for City Council and public use no later than the second City Council meeting in November and before approval of the FY 03 budget.

Fiscal Note: Not identified at this time.

KRANICH/LADD - MOVED TO AMEND THE RECOMMENDATIONS AND ADD AN ITEM NUMBER 3. THAT WOULD READ: THAT THE CITY MANAGER WORK WITH A THIRD PARTY TO FINALIZE SURVEY WORDING IN ORDER TO OBTAIN A NEUTRAL PRESENTATION , EFFICIENT DISTRIBUTION PROCESS AND COMPILATION OF SURVEY DATA.

Councilmember Kranich stated that this item 3. would complete the process of the survey and that it was grossly in error that it was left out of the original memorandum.

VOTE: (primary amendment) YES: NON OBJECTION UNANIMOUS CONSENT.

Motion carried.

VOTE: (amended main motion) YES: NON OBJECTION UNANIMOUS CONSENT.

Motion carried.

Recommendations now read:

1. That the draft survey be finalized by City administration and the draft format be approved by the City Council before distribution to the public in final format, and

2. That the survey be completed by community members and survey results be compiled and tabulated for City Council and public use no later than the second City Council meeting in November and before approval of the FY 03 budget.

3. That the City Manager work with a third party to finalize survey wording in order to obtain a neutral presentation, efficient distribution process and compilation of survey data.

RESOLUTIONS

A. Resolution 02-24, Of the City Council of Homer, Alaska, Revising the Property Management Policy and Procedures Manual, Section 6.2, Lease Renewals and Non Renewals, Procedure. Ladd/Kranich. Postponed on March 26, 2002 to the first meeting in August, Main motion is on the floor.

MAIN MOTION OF MARCH 26, 2002: KRANICH/LADD - MOVED FOR THE ADOPTION OF RESOLUTION 02-24 BY READING OF TITLE.

The City Manager has drafted a proposal of a new lease policy. The Mayor and Councilmembers intend to meet with the Manager individually to review the document and provide him with their suggestions as well as providing an opportunity for the community to have that input. This new lease policy will be on the August 26th Committee of the Whole agenda.

Mayor Cushing reiterated Council’s commitment during the Committee of the Whole to dedicate at

least an hour during the next Committee of the Whole for review of what the City Manager has been drafting for review.

Council discussed the apparent need for review time and discussed possible postponement or laying on the table.

FENSKE/CUE - MOVED TO LAY RESOLUTION 02-24 ON THE TABLE.

VOTE: (Lay on the table.) YES: YOURKOWSKI, MARQUARDT, KRANICH, CUE, FENSKE, LADD.

Motion carried.

Mayor Cushing again advised that this matter will be on the next Committee of the Whole agenda and will be discussed prior to discussion on the September 9th Regular Meeting Agenda.

B. Consent Agenda Item I. Resolution 02-49, Of the City Council of Homer, Alaska Recognizing the key Economic and Cultural Services Provided the Community by the Pratt Museum and if the City of Homer Allocates Funds to Non Profits Organizations in Future Budget Cycles, a Separate Line Item Appropriation for the Pratt Museum will be established. Mayor/Ladd. Recommend adoption.

LADD/CUE - MOVED FOR THE ADOPTION OF RESOLUTION 02-49 BY READING OF TITLE

There was a lot of discussion of the pros and the cons of placing the Pratt Museum in the City of Homer’s budget as a specific line item. It was noted that the Chamber of Commerce and Community Schools are separate line items. The importance of the Pratt Museum, an accredited museum, to the community was emphasized and noted were the training and education that are provided through the Pratt Museum to all age groups, over 30,000 visitors each year, the service and benefit to small business and other agencies within the community, and that it is the repository of City history and art. Ordinance 02-25, 1% for works of art, specifically mentions the Pratt Museum and not other non profit entities. No level of funding is being asked for, this Resolution does state that if the City of Homer has the funds and chooses to fund non profits then funding should be specifically directed, through a line item, to the Pratt Museum. The process of allocating funds to the Homer Foundation was noted and that this process and system has been working and the distribution of the funds to non profits has been de politicized. Part of the Homer Foundation process is to build the City’s endowment to create revenues to be self sustaining. The Chamber of Commerce has a contract with the City and is set up by local business to promote local business and to represent the City. There was brief mention of funding for the Pratt Museum evolving into a contract and that it should be a separate accountable entity to the City as is the Chamber of Commerce.

Mayor Cushing passed the gavel at 9:57 p.m. and at 10:10 p.m. to voice his support of this Resolution.

City Manager Drathman voiced his objections to the Resolution, stating that he does not see why the Pratt Museum should be treated any differently than any other non profit, that it is not appropriate at this time and in fact is going backward from the funding process through the Homer Foundation.

Lengthy discussion ensued.

YOURKOWSKI/NO SECOND RECOGNIZED - CALLED FOR THE QUESTION.

Mayor Cushing called for a vote.

VOTE: (call for the question) YES: LADD, YOURKOWSKI.

NO: FENSKE, MARQUARDT, KRANICH, CUE.

Motion failed.

There was further discussion about the Homer Foundation process of distributing funds. Concern was voiced about creating more enmity and conflict by changing this process.

VOTE: YES: LADD, YOURKOWSKI, CUE.

NO: MARQUARDT, KRANICH, FENSKE.

TIE VOTE: MAYOR: YES.

Motion carried.

AUDIENCE COMMENTS

Doug Stark, original Chairman of Citizens Concerned About Annexation, assured the Council that those opposed to annexation were as concerned about Homer’s regulations as they were about Homer’s taxes. He reported his estimate that it would take up to ten years to heal the split in this Community caused by this Council’s annexation attempt and that one of his major objectives in being on the Council is to heal this split. He relayed to the Council his horror at discovering that the City intends to change the street addresses of the 900 families in the annexation area. He shared the history of going through this a few years ago when the phone company and Borough mandated their system. He implored the Council to stop this madness, adding that the best system would be for the City to use the Borough system, and strongly opposed such a change which would be for no real purpose. He emphasized that the system is not broke and asked the Council to please not fix it, leave the addresses as they are, and that the post office will get the mail there one way or another. He voiced his anticipation that within a few years or less that all the emergency vehicles will have a geographic information system read out in their vehicles and will know exactly where the call came from and there is no reason to change. He pointed out that as the City expands in the future, which it will, it will get to the point where the City will have five and maybe six numbers, therefore, it makes no sense to change what exists.

Ken Castner commented on the percent for the art thing, adding that pictures and sculptors can always be purchased and stained glass can be put up in windows. He stated that the real need for art is what is incorporated into the design of the building and everyone kind of treats this percent for art thing as an after thought. He noted that the Fish and Wildlife Preserve and Kachemak Bay Reserve don’t have a percent for art, but have incorporated their art into the design of their buildings and interviewed artists way at the front end of the project and had art work chosen, ready to be incorporated and literally cast into the concrete. He encouraged the Council to really think about this when talking about “art into a building”, that all the other things can be added afterward and hung on walls or put in plazas, etcetera. He voiced his opinion that the construction money dedicated for those artistic touches are the real important items. He commented about the Council being given, earlier today, a Memorandum from a Site Selection/Building Committee that is working under the auspices of the Homer Library Advisory Board. He stated that he wanted to really press upon the Council that there is no sense in doing much more work on a new Library until a site has been selected, that it is hard to raise money without pointing at a site, it is hard to do any kind of planning and it is hard to even choose the designer until there is a site. He emphasized that there is lots of work to be done prior to construction of a Library and even more work to be done in site investigation. He relayed his discussion with a couple of members earlier this evening, when they were questioning acquiring additional land, that some of these sites are going to be so costly to build upon that land acquisition is cheap and pales compared to site development that will be needed at the four sites that “we” looked at, the four sites that kind of form a belt through the center of town. He stated that he would really like to do whatever he can and the Committee that he is with would like to do whatever they can to bring this to a pretty speedy conclusion and get a site. He also commented with regard to his involvement with the Homer Foundation and that he has no objection to people flexing political muscle. He communicated that the Foundation’s goal is long term and that he knows that everybody gets into day to day jams and that his view goes way beyond this year’s or next year’s budget. He pointed out that the only way the institutions in this town will ever prosper is to start getting people to leave bequests in their wills and bring in the big money. He advised that he is much more interested in working on things were money comes in through bequests or through insurance assignments or whatever, than to be distributing pass-through dollars in a year. He conceded that the pass through element is something that is by necessity, something that has to be done and all foundations do it, but the real work of a foundation is to help build endowments for the future, it is tomorrow’s money not today’s money. He noted that is the message everybody that has an endowment needs to build that so that there is a revenue stream that can be depended upon far into the future.

Kevin Hogan commented on the Pratt Museum issue, advising that he donates a fair amount of his income to non profits and kind of makes it a point to not donate anything to entities that receive funding from the City. He stated that he does get a tax deduction and other benefits when he donates himself. He also commented on the one percent for art and that he does not want to be stomping on the apple pie or anything here. He relayed that he was in a local art outlet today, a private enterprise and free market kind of deal and that while he was looking at some art there was a business card there of one of the artists that he was looking at and it said, “qualified to receive one percent for the art grants” or something to that effect.” He further relayed that he then got in his car, started driving off and heard the debate going on and that the person has the same last name as one of the people at the Council table and that he does not think there was anyone that said that there might be a conflict of interest. He recalled that, recently, Mr. Yourkowski stood down for a conflict of interest issue that had no direct bearing on his finances. He stated that he objects to no conflict of interest being stated in this case if someone is qualified to receive these kind of monies and this person’s got a spouse that is sitting at the table not declaring a conflict. He commented that he thinks it is known who this is, so he will not mention any names.

Mayor Cushing stated that his wife is an artist, but did not think this was on her business card and asked Councilmember Marquardt about his wife.

Councilmember Marquardt stated the same regarding his wife.

Mayor Cushing told Mr. Hogan that he would pass on his words to the City Attorney, that they do not even have any clue who he is talking about, but will pass this on to the City Attorney. Mayor Cushing promised that if the City Attorney says there is a conflict of interest he will veto that deal immediately and allow it to come back to the Council for a revote. He inquired if that satisfied Mr. Hogan.

Mr. Hogan affirmed.

Mayor Cushing then directed the City Clerk to make sure that the conflict of interest question gets to the City Attorney tomorrow, with the input.

Alan Parks advised that although he now lives outside the City of Homer he still appreciates the work of the Council and what they discuss. He thanked the Council for supporting and passing the Resolution earlier this year that opposed the processor quota shares. He advised that this issue is not over and is moving into the ground fish and salmon. He reported that the 11/0 vote that happened in Dutch Harbor that the Council passed that recommended to Congress to allocate fisheries resources to processors is not over and an 11/0 vote is not an indication or a consensus of Alaskans. Homer City Council proved that by a Homer Council Resolution and conversations with Congressmen, which are real important to keep up the fight against that happening. He commented on Mr. Hogan’s comments about the one percent and thought about what qualifies a person as an artist, or a one percent artist He noted that all of the one percent information that he has read from the Municipality of Anchorage and other municipalities is that anybody is qualified to support for a one percent project and that the individual just has to get on a list and is then mailed information about upcoming projects. He voiced his opinion that there is no conflict of interest and voiced his appreciation with the Mayor checking on this with the City Attorney.

Mayor Cushing stated that there are a whole series of things to go through and that if the City Attorney even hesitates an iota to think that there is someone sitting here with a conflict, it is not that big of an issue to go through the whole thing from scratch.

COMMENTS OF THE CITY ATTORNEY

City Attorney Tans was not present.

COMMENTS OF THE CITY CLERK

City Clerk Calhoun reminded everyone to vote, that absentee in person voting for the Primary Election is available now at the City Clerk’s Office and that the City candidacy period for Mayor and Council closes the 15th.

COMMENTS OF THE CITY MANAGER

City Manager Drathman answered what Mr. Stark suggested that indeed it became a self fulfilling prophesy during annexation that it will probably take ten years to be over it, but a lot of it was based upon misinformation and false truth. He voiced his thought that someone has given Mr. Stark some bad information on “this” and urged him to go up and talk to the Borough. Mr. Drathman pointed out that the Borough is the agency that is pushing for the renumbering down here and the City has no interest in doing that whatsoever and also has no choice in the matter. The Manager urged Mr. Stark to take his pleas to the Borough and voiced his hope that Mr. Stark succeeds, because the City is not interested in readdressing anything, but the Borough has required it with their 911 program.

The City Manager acknowledged and commended the Homer Volunteer Fire Department for their great work and tremendous job on the fire that was set by lightening out east, last week. He emphasized that State Forestry is balking at paying the City for providing that service. The State Forestry has always paid the City and in fact this year have paid the City to fight other fires. Their theory now is that since the City is contracting to do the fire service for KESA that they don’t have to pay anyone. Mr. Drathman stated that he is kind of baffled by that logic. He stated that the Homer Volunteer Fire Department got on that fire real quick and worked with the KESA Volunteers, who are all City volunteers, and the Division of Forestry was running behind everyone on that, as they normally are “down here”. The Homer Volunteer Fire Department has always been the ones that can be counted on to go out and “do it” and they did a dynamite job. He stated that complements have been received from professional fire fighters all over the state about how that fire was handled, how quick it was set up, how quick the incident command centers were set up and how quickly it was extinguished. The City Manager said, “Hats off to the volunteers and the staff over at the Fire Department. They did a tremendous job.”

COMMENTS OF THE MAYOR

Mayor Cushing commented in response to Councilmember Fenske’s last comment, where is the revenue coming from and simply if the revenue is not there this Council has the privilege of saying that the Pratt gets a big large zero.

COMMENTS OF THE CITY COUNCIL

Councilmember Ladd commented that he had heard about the fire when he was in Soldotna, from the fire crew in the Central Peninsula, and that he was amazed, when considering all the dead wood, that the fire was extinguished so rapidly. He commended the Fire Chief and the volunteers.

Mayor Cushing interjected that he owns a home out east and is glad to pay the service mills on that house to have a fire department.

Councilmember Kranich commented that in that area when a swamp burns, things are pretty touchy. He advised that he had a daughter-in-law who was at the site and who was observing.

ADJOURNMENT

There being no further business to come before the Council the meeting was adjourned at 10:48 p.m. The next Regular Meeting is scheduled for August 26, 2002 at 7:30 p.m. and the Committee of the Whole is scheduled for August 26, 2002 at 4 p.m. in the Homer City Hall Council Chambers located at 491 E. Pioneer Avenue, Homer, Alaska.

_____________________________________

MARY L. CALHOUN, CMC, CITY CLERK

Approved: _______________________