Session 06-18 a Regular Meeting of the Homer City Council was called to order at 7:02 p.m. by Mayor James C. Hornaday at the Homer City Hall Cowles Council Chambers located at 491 E. Pioneer Avenue, Homer, Alaska, and opened with the Pledge of Allegiance.

PRESENT: COUNCILMEMBERS: HEIMBUCH, McLAY, NOVAK, SHADLE, STARK, WYTHE.

STAFF: CITY CLERK CALHOUN

CITY MANAGER WREDE

PUBLIC WORKS DIRECTOR MEYER

Department Heads may be called upon from time to time to participate telephonically.

Council met as a Committee of the Whole from 4 to 5:16 p.m. a presentation was made by Enstar Staff regarding a Natural Gas Pipeline to Homer and the status and planning thereof; and the Regular Agenda items along with those items in the supplemental packet were discussed.

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 City Council with the following changes:

Under Consent Agenda: Substitute Resolution 06-91(S), with Memorandum 06-119(S)(1), Substitute Resolution 06-97(S) with Memorandum 06-133, Substitute Resolution 06-98(S), with Memorandum 06-134, Page 49 of the Packet belongs with Resolution 06-103, Hillside Acres Water Project Map and Property Owner Letter to accompany Resolution 06-105, Letter from Community Mental Health to accompany Resolution 06-108, and Resolution 06-110 with Resolution 06-136; and add under Announcements, Presentations, Reports......Councilmember Wythe AML Report and Memorandum 06-138, from City Planner, Regarding Ordinance 06-20(A).

PUBLIC COMMENTS UPON MATTERS ALREADY ON THE AGENDA

Public May comment on any matter on the agenda except Visitors on the Homer Greenways Project, and Public Hearing items Ordinance 06-41 through 06-44.

There were no public comments.

RECONSIDERATION

A. Council approved reconsideration of Resolution 06-85 on July 24, 2006, with reconsideration scheduled for August 14, 2006 Regular Meeting, See item A under Resolutions.

No action until Resolutions.

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 unapproved meeting minutes of July 24, 2006 Regular Meeting. City Clerk. Recommend approval.

B. Ordinance 06-29, Of the City Council of Homer, Alaska Amending City Code Requiring Sewer Connection Before Receiving City Water. Novak. Recommend Introduction, Conduct Public Hearing August 28, 2006, Second Reading September 11, 2006.

Pulled by the sponsor from the agenda in entirety.

C. Ordinance 06-45, Of the City Council Amending HCC Section 9.04.040, Annual Tax Levy, to Provide for the Establishment of the Annual Property Tax Levy Rate to be set by Budget Ordinance or Resolution. City Clerk. Recommend introduction for first reading, Set Public Hearing and Second Reading for August 28, 2006.

D. If approved under agenda approval Substitute Resolution 06-91(S), Of the City Council of Homer, Alaska Awarding the Contract for the Kachemak Drive Phase One Water and Sewer Project to the Firm of Herndon Construction LLC of Homer, Alaska in the Amount of $967,669.00 and Authorizing the City manager to Execute the Appropriate Documents City Clerk

Memorandum 06-119(S)(1) from Public Works as backup.

Placed under Resolutions as Item C.

E. Resolution 06-96, Of the Homer City Council Pledging a Contribution of $2,500.00 to the Proposed Statewide Methamphetamine Abuse Education Campaign. Council. Recommend adoption.

F. Approved under agenda approval Substitute Resolution 06-97(S) Of the City Council of Homer, Alaska Awarding the Contract for the Spruceview/Noview Road Project Phase I to the firm of Twin Peaks Construction, Inc. of Anchor Point, Alaska in the Amount of $546,072.00 and Authorizing the City Manager to Execute the Appropriate Documents. City Clerk

Memorandum 06-133 from Public Works as backup.

G. Approved under agenda approval Substitute Resolution 06-98(S) Of the City Council of Homer, Alaska Awarding the Contract for the High Mast Light Installation/Ramp 7 Replacement to the firm of Endries Company of Soldotna, Alaska in the Amount of $136,000.00 and Authorizing the City Manager to Execute the Appropriate Documents. City Clerk

Memorandum 06-134 from Public Works as backup.

H. Resolution 06-99, Of the Homer City Council Expressing its position Regarding Current Efforts to Promote a Merger Between Kachemak City and the City of Homer. Mayor Hornaday. Wythe.

I. Resolution 06-100, Of the Homer City Council Expressing its Intent and Desire Regarding Future Budget Appropriations to Depreciation Reserve Accounts and the Cash Balances in those Accounts. Wythe. Recommend adoption and implementation.

J. Resolution 06-101, Of the City Council of Homer, Alaska Expressing its Intent and Desire Regarding the Reserve Fund Balance Contained in the General Fund. Wythe. Recommend adoption and implementation.

K. Resolution 06-102, Of the City Council Finding the Need to Create the Bayview Gardens Sewer Improvement District/Assessment District and Setting a Public Hearing Date for Monday, September 25, 2006. McLay. Recommend adoption.

Placed under Resolutions as Item D.

L. Resolution 06-103, Of the Homer City Council Confirming the Assessment Roll, Establishing Dates for Payment of Special Assessments, and Establishing Delinquency, Penalty and Interest Provisions for the East Road (portion) Sewer Assessment District also know as the East End Road (portion) Sewer Assessment District. City Clerk. Recommend adoption.

M. Resolution 06-104, Of the Homer City Council Confirming the Assessment Roll, Establishing Dates for Payment of Special Assessments, and Establishing Delinquency, Penalty and Interest Provisions for the East End Road Water and Sewer Assessment District. City Clerk. Recommend adoption.

Placed under Resolutions as Item G.

N. Resolution 06-105, Of the Homer City Council Confirming the Assessment Roll, Establishing Dates for Payment of Special Assessments, and Establishing Delinquency, Penalty and Interest Provisions for the Hillside Acres Water Assessment District and the Hillside Acres Sewer Assessment District. City Clerk. Recommend adoption.

O. Resolution 06-106, Of the Homer City Council Confirming the Assessment Roll, Establishing Dates for Payment of Special Assessments, and Establishing Delinquency, Penalty and Interest Provisions for the Thompson Drive Sewer Assessment District. City Clerk. Recommend adoption.

P. Resolution 06-107, Of the City Council of Homer, Alaska Supporting the Kachemak Bay Equestrian Association's Quest for Grant Money for the Design and Development of an Equestrian Park. City Clerk. Recommend adoption.

Q. Resolution 06-108, Of the Homer City Council Exempting the Homer Chamber of Commerce and Community Mental Health from all City Property Tax meeting the Criteria of Kenai Peninsula Borough Code 5.12.100, Real Property Tax - Exemptions - Community Purpose Property - Conditions, Retroactive to January 1, 2006 and Authorizing the City Manager to Execute any and all Associated Documents. City Manager. Recommend Adoption.

Placed under Resolutions as Item F.

R. Resolution 06-109, Of the City Council of Homer, Alaska Awarding a Contract to the Firm of Corporate Express in the Cumulative Amount of $125,997.00 for Furniture at the New Homer Public Library. City Manager. Recommend adoption.

Placed under Resolutions as Item E.

S. Resolution 06-110, Of the City Council of Homer, Alaska Authorizing a Change Order to Add W. Soundview and Waddell Way to the Contract for the 2006 Street Repaving Project with Quality Asphalt Paving (QAP) of Anchorage, Alaska in the Amount of $76,000.00 and Authorizing the City Manager to Execute the Appropriate Documents. City Manager. Recommend adoption. Pending.

Memorandum 06-136, from Public Works as backup.

T. Memorandum 06-135, from City Clerk, Re: Vacation of the 25 Foot Ingress-Egress Easement along the South Lot Line of Lot 27A and the 20 foot utility Easement Centered along the Common East-West Lot Line of Lots 27A-2-A and 28-A-1 Granted by Bunnell's Subdivision Replat of Lots 27 and 28 (Plat HM 78-44) and the 10 foot Utility Easement along the North Lot Line of lot 28-A-1 and the 10 foot Utility Easement along the East Lot Line of Lot 27A-2-A Granted by Bunnell's Subdivision No 17 (Plat HM 86-44); within Section 19, Township 6 South, Range 13 West, Seward Meridian, Alaska. Recommend non veto.

U. Memorandum 06-137, from Mayor, Re: Appointment of Richard "Bumppo" Bremicker to the Parks and Recreation Commission to the McCallum Vacancy. Recommend confirmation.

Councilmember Stark requested, pursuant to the City Manager's recommendation, that item D. be placed under Resolutions as item C.

Councilmember Wythe requested that Item K. be placed under Resolutions as Item D. and that Item R. be placed under Resolutions as Item E. .

Councilmember Heimbuch requested that Item Q. be placed under Resolutions as Item F.

Councilmember McLay requested that Item M. be placed under Resolutions as Item G.

Councilmember Novak pulled Item B. from the agenda in entirety.

Councilmember Stark advised that he has a conflict of interest on Item L. Resolution 06-103, his home, but that he does not believe it is substantial, confirming the assessment for sewer.

Mayor Hornaday inquired if this would affect his vote at all and Councilmember Stark responded in the negative. Mayor Hornaday stated that he does not believe this to be a conflict and inquired if any of the Councilmembers had any problem with this and Council did not voice any concerns.

WYTHE/NOVAK - SO MOVED TO APPROVE AS READ. (With the Exception of Items B., D., K., M., Q. AND R.)

There was no discussion.

Motion carried.

VISITORS

A. Kenton Bloom and John Fowler, Homer Greenways Project. (15 minutes maximum)

Kenton Bloom and John Fowler (Lindsey Winkler was also present) made presentation to the Council and used power point pictures regarding the Homer Greenways Project:

Kenton Bloom introduced himself as the principal researcher and author of the City of Homer first Trail Plan published in 1984, which was never actually adopted by the Council. Created the insight at an early age and makes him have a real strong sense of how time works for a community and how a consistent perspective of really looking at something and really examining it is a functional process over time.

Ten years ago Kenton Bloom and John Fowler met and worked together on a project, having a lot in common.

Way to have an interconnected trail and open space network around Homer, part of the development pattern that they are working with. Finding a way to integrate this as part of that pattern.

During the last year the critical pieces fell into place where they knew that they could develop with either aspects of open space and/or trail easements in the Homer area, having done over fifteen projects. By virtue of those and connection of existing easements, section lines and so forth there is functional, legal connectivity over large swaths of area.

Two areas get a vertical access from the bench in town to the bluff up above in City limits.

John Fowler commented in his retirement project, Look Out Mountain Park, up on the bluff, a 70 acre project of a landscape first design.

At Look Out Mountain Park - every home site was very specifically situated such that it was landscaped around and there were open space and trails so that each home site was adjacent. On the 70 acres there is about 45 acres of dedicated open space and trails.

Ten years ago they had the question of how to connect Look Out Mountain Park to other open space areas and to possibly connect into town and around town.

A dozen purchases have been made, primarily, in the Bear Creek and Crossman Ridge and also in the Baycrest Area. At this point the pieces are together, for a greenways trail, to connect the trails up Bear Canyon, to Skyline, to Wynn Nature Trail System, over to the Crossman Reservoir area and up Crossman Ridge Road and down into Baycrest and a trail that will rap around Homer.

Hope is that people will get a tremendous amount of use out of this trail.

Showed a map on power point that shows the core of Kachemak Bay North Shore area, Diamond Creek on one side and on out East Road.

Legal basis for all the development to follow, from the 1940 version of what the Homesteaders found and homesteaded to the conceptual area of the Greenway. All the areas in the Greenway are functional legal accesses, meaning that one can walk into these areas legally.

There are always potentials for improving the concept beyond the point where it is today.

Functional legal access secured this past year from Pioneer Avenue up to Alpine Way on West Hill, which circumvents, by providing another option, of having to put pedestrian amenity, in the City terms, on the West Hill alignment. The potential for extending further north off of West Hill is pretty high. The beauty of Alpine is that it is right at the spot, off the grade, right at the corner on top of the West Hill bench.

They reported that they will be presenting parts the Greenways Project in different parts of the state and that Homer is going to be a model for the state in how places can develop toward larger visions, toward visions of interconnected open space and connected trails that are embraced and created by development. Noted that this is from the City's Manual that was done by a landscape architect that picked up on the Lookout Mountain Project.

The Greenway Areas and development areas showing the connectivity were displayed through power point.

They reported on purchases and working to have the entire canyon system to provide a Greenway and trail system that raps all the way to the Wynn Nature System.

Also working on getting a multi use low angle bike trail that winds up through the Look Out Mountain Project.

This will be a way that people will recreate in Homer.

Is an economic valued adder, adds value to property, added value to community.

West of Homer and East of Homer both have gateways into the Greenway. From Pioneer Avenue toward West Hill, Baycrest area, Karen Hornaday Hillside City Park to the east of the trail.

All of the community is being able to have a real outdoor trail experience right in the core part of Homer, partners with the Museum, with Homer Middle School, private developers, and a piece of City land.

Overall opportunity to represent the roots of this place as all know it to be with the Homestead ethic and the feeling of pulling up one's boot straps and doing it without having someone telling one to do it.

The Greenways Project is an inclusive project, wherein people can choose or not choose to be a part of the project.

This is really, fundamentally trying to hold up a model that supports the place in terms of environment, the wetlands, the wildlife and that corridors are being created for the health of all of those systems. That is really supportive of the community in the sense of providing an amenity that creates places for people to walk, bike, ski, and have a healthy recreational experience for both residents and visitors.

What was found and possibly the most exciting, is that this really raises the value of the development itself, so everyone ends up a winner. Any model is really the key measure of success.

Mr. Bloom and Mr. Fowler thanked the Council for their time and expressed hope that the Council was able to get, at least a brief, glimpse into the concept presented tonight.

Mayor Hornaday suggested that they talk to the Parks and Recreation Commission.

ANNOUNCEMENTS/PRESENTATIONS/BOROUGH REPORT/COMMISSION REPORTS

A. Mayoral Proclamation, Alaska Municipal League Days.

Mayor Hornaday noted that the AML Summer Session was a great success, thanking Councilmember Stark. He reported that he only heard praise and appreciation for Homer's efforts and thanked the City Clerk's Office, Mary, Jo and Melissa; the City Manager and his staff; that the Best Western was a good place for the facilities; that Land's End did a good job for the gubernatorial debate and that Mayor Pro Tempore McLay kept them all in line and also received the greatest applause when he told the audience to quite clapping. He reported that the main three areas that the Municipal League, Borough Mayor and State Mayor meetings were revenue sharing, helping out with PERS/TERS and stopping unfunded mandates.

Councilmember Stark, who has been credited in getting the AML Summer Session to Homer, expressed recognition and gave a lot of the credit to Mayor Pro Tempore McLay, Sandy Stark and Councilmember Shadle who helped con the Board in Juneau into giving Homer the Conference on a vote of 13 to 1.

Councilmember Shadle commented about really crediting the Mayor Pro Tempore, being on crutches in Juneau at the time they were lobbying for the AML Summer Session to come to Homer and Councilmember Stark.

There were a few other comments about the Juneau lobbying travel experience and logistics thereof.

B. If added under agenda approval: Councilmember Wythe AML Report.

C. Added under agenda approval: Memorandum 06-138, from City Planner, Regarding Ordinance 06-20(A).

PUBLIC HEARING(S)

A. Ordinance 06-41, Of the City Council of Homer, Alaska Authorizing the City to Enter into a Loan Agreement with the Alaska Department of Environmental Conservation (ADEC) through the Drinking Water Revolving Loan Fund Program to Finance the Ocean Drive Loop Sewer and Kachemak Drive Phase I Water and Sewer Projects and the Design of Kachemak Drive Phase II Water and Sewer Project in the amount of $3,720,000.00. City Manager.(First Reading July 24, 2006, Public Hearing and Second Reading August 14, 2006.)

There was no public testimony.

WYTHE/SHADLE - I WOULD MOVE FOR THE ADOPTION OF ORDINANCE 06-41 BY READING BY READING OF TITLE ONLY.

There was no discussion.

VOTE: YES: NON OBJECTION UNANIMOUS CONSENT.

Motion carried.

B. Ordinance 06-42, Of the City Council of Homer, Alaska Submitting a Set of Ballot Questions to the Voters at the Regular Municipal Election on October 3, 2006, Regarding the Homer Accelerated Roads Program (HARP), Including Continuation of the Program and Reauthorizing the Three Fourths Percent (3/4%) Sales Tax Levy for up to Twenty Additional Years, Amending HARP to Authorize Construction of New Roads and New Trails, and Amending Homer City Code Subsection 9.16.010(c) Accordingly. City Manager, at the request of Mayor and Council. (First Reading July 24, 2006, Public Hearing and Second Reading August 14, 2006.)

There was no public testimony.

WYTHE/NOVAK - SO MOVED FOR THE ADOPTION OF ORDINANCE 06-42 FOR SECOND AND FINAL READING BY READING OF TITLE ONLY.

There was no discussion.

VOTE: YES: NON OBJECTION UNANIMOUS CONSENT.

Motion carried.

C. Ordinance 06-43, Of the City Council of Homer, Alaska Accepting Ocean Drive Loop Erosion Control Project Settlement Funds in the amount of $540,000, and Appropriating Those Funds to the Special Projects Fund. City Manager. (First Reading July 24, 2006, Public Hearing and Second Reading August 14, 2006.)

There was no public testimony.

NOVAK/WYTHE - MOVE FOR THE ADOPTION OF ORDINANCE 06-43 BY READING OF TITLE.

There was clarification regarding the Special Projects Fund that this fund is for special construction projects.

VOTE: YES: NON OBJECTION UNANIMOUS CONSENT.

Motion carried.

D. Ordinance 06-44, Of the City Council of Homer, Alaska Accepting and Appropriating an Impaired Driving and Occupant Protection Program Reimbursable Grant in the Amount of $10,314.24 and Authorizing the City Manager or His Designee to Execute the Appropriate Documents. City Manager. (First Reading July 24, 2006, Public Hearing and Second Reading August 14, 2006.)

There was no public testimony.

WYTHE/SHADLE - SO MOVED FOR THE ADOPTION OF ORDINANCE 06-44 FOR SECOND AND FINAL READING BY READING OF TITLE ONLY.

There was no discussion.

VOTE: YES: NON OBJECTION UNANIMOUS CONSENT.

Motion carried.

ORDINANCE(S)

None scheduled.

CITY MANAGER'S REPORT

A. City Manager's Report (Updates/Follow-Up: NOTE: Some of these items appeared on the last report but are included due to importance and to give the Council another opportunity to discuss these matters: 1. Ten Acre Parcel/Hillside: Mr. Gordon has been contacted regarding the potential land trades. There are two possible trades that the Council can consider. Next meeting memo or resolution to discuss in detail and for action. One option involves the simple exchange of easements, the other is more complicated. No discussions with adjacent property owners about extending the ROW. 2. Library: The City has accepted the building, project is substantially complete. Construction crews are still working on a few relatively minor things. The furniture should arrive within the next few weeks and the interior artwork is nearing completion. Parking lot is paved and much landscaping work has been completed. Opening ceremony being finalized. Moving in is taking place. Plans for surplus disposal of old furniture, shelving etc., and the disposal of the old library building. 3. Jack Gist Park: Fences are being erected, the parking lot constructed, and more top soil is being brought in to fill in holes on the playing surface. Lot of volunteers effort. Topsoil hauling price increase. Change order in the amount of $2,400 for the additional cost is within budget. 4.DOT/PF projects: Top priorities intersections at Main and Sterling, Heath and Lake at Pioneer, Main St. Rehabilitation, Heath St. Extension, completion of the Spit Trail, and Deep Water Dock funds. 5. Concert on Lawn great success at Karen Hornaday Hillside City Park July 29 and 30. Thanks to KBBI and volunteers for doing such a good job of running the event and taking care of the myriad of parking, garbage, noise, and other issues that can be associated with an event like this. 6. Fish Dock Road Redevelopment: Tenants receive an additional 30 days to vacate property, no later than September 30. The City can still meet the goal of knocking the buildings down and cleaning up the property before freeze-up. Also gives the tenants more time to relocate and will cause less disruption of Fish Dock operations. 7. Finance Department: Implementing the recommendations of the auditors and the new Director. This includes new internal controls, establishing a separate leave bank and accounting for the unfunded liability, updating fixed assets, improving coordination and reporting procedures between departments. The workload of the Finance Department has increased exponentially over the past few years and has been overlooked for additional staff. 8. Systems Manager: New library software and the new windows based, wireless phone system at City Hall, Public Works, and to a limited extent, the Police and Fire Departments. This system is already in place at Port and Harbor and the Library. The City is undergoing some significant technological upgrades. 9. Community Schools: Sheri Hobbs is supervising the program and had a good working relationship with Michael Illg. Some changes have been made that will benefit the program overall. Mr. Illg is never short of new ideas to raise more money and Mrs. Hobbs is working out a deal with the School District regarding the scheduling of school facilities for events that are not necessarily Community Schools programs, such as conferences. etc. 10. Pandemic Flu Response Plan: Tabletop exercise and community meeting took place on Wednesday, August 09, 2006. 11. New Police Chief: Mark Robl retired as a City employee almost two years ago, under a two-year contract/employment agreement. He has submitted his resignation notice effective December 2006. A big loss to the City and to the community at large. Mark has been an excellent Chief. Advertising for the position of Chief of Police, plan to hire by end of September.

City Manager Wrede drew Council's attention to Item 4.DOT/PF projects: Top priorities intersections at Main and Sterling, Heath and Lake at Pioneer, Main St. Rehabilitation, Heath St. Extension, completion of the Spit Trail, and Deep Water Dock funds and reported on a meeting staff had with DOT a couple of weeks ago. One of the items discussed, specifically, was upgrading Main Street and how to get that done, how the intersection there was going to be improved, and was there a way to mesh that together with the Town Center Development and the Fred Meyer Conditional Use Permit, just approved. He advised that the recommendation from the staff to the Commission⁽¹⁾ is going to be that all of the Resolutions that Council passed be approved and accepted, such as Council offering to take over a few roads in exchange for them completing the Spit Trail, asking for some help with the Heath Street Extension and with those intersections there. City Manager Wrede relayed his thought that the meeting was positive and that there will be some progress seen on all of these issues in the short term, especially the Spit Trail and Main Street.

Under Item 6, Fish Dock Road Redevelopment, there was some discussion which included comments about adding two Councilmembers to the Lease RFP review committee, but not to the Lease Committee. Lease Committee make up was noted: City Manager, Finance Director, City Planner and involvement of the Port and Harbor Director. There was desire expressed to discuss this matter at a later time.

Inquiry was made of the City Manager if the parcel in his report item 1. was included in the Homer Greenways Project, as it seemed to appear to be in the power point presentation. City Manager Wrede responded that he did not know if the parcel were included or not.

B. Bid Report. (1. RFP - Professional Engineering Services - Water/Sewer Design Proposals for engineering due by 4:30 p.m., August 21, 2006. One Addendum, 2. High Mast Light Installation/Ramp 7 Replacement See Resolution 06-98(S), Consent Agenda Item G., 3. Spruceview/Noview Road Project Phase I See Resolution 06-97, Consent Agenda Item F., 4.Bid - 2006 Septic Tank Pumping Contract Sealed Bids for Septic Pumping Services due 2:00 p.m., August 18 2006., 5. RFP - Comprehensive Plan Update Proposals for professional planning and/or engineering services for an update to the City of Homer Comprehensive Plan due by 4:00 p.m., September 15, 2006.)

C. Public Input on Question of the Week.

COMMITTEE REPORT

A. Public Arts Committee (Next meeting scheduled for Thursday, August 17, 2006 at 11 a.m.)

B. Transportation Advisory Committee (Next meeting scheduled for Tuesday, August 15, 2006 at 5:30 p.m.)

PENDING BUSINESS

None scheduled.

NEW BUSINESS

None scheduled.

Mayor Hornaday called for recess at 7:47 p.m. reconvening the meeting at 7:53 p.m.

RESOLUTIONS

A. Resolution 06-85, Of the City Council of Homer, Alaska Urging the Department of Fish and Game to Open Kachemak Bay for Subsistence Crab Fishing and Promote a More Environmentally Friendly Gear Type. Shadle. Reconsideration passed on July 24, 2006, main motion is back on the floor.

Main Motion is back on the floor for revote pursuant to motion to reconsider on July 24, 2006:SHADLE/WYTHE/STARK - SO MOVED FOR THE ADOPTION OF THE RESOLUTION.

There was no discussion.

SHADLE/NOVAK - I WOULD MOVE TO POSTPONE UNTIL THE NEXT MEETING.

Councilmember Shadle stated that his reason for postponement is that there is a really cool video⁽²⁾ that he thinks that everybody should watch.

VOTE: NON OBJECTION, UNANIMOUS CONSENT.

Motion carried.

B. Resolution 06-87, Of the City Council of Homer, Alaska Authorizing the Sale of Lot 18, Mattox Subdivision to Kenai Peninsula Housing Initiatives, Inc. (KPHI) at Appraised Value Pursuant to HCC 18.12.060. City Manager. Fiscal Note: Revenue, $55,000. To be deposited in Alternative Depreciation Account. Postponed on July 24, 2006, Main motion is on the floor.

Memorandum 06-116, from City Manager, as backup, submitted on July 24, 2006.

B.1. Resolution 06-87(S), Of the City Council of Homer, Alaska Authorizing the Sale of Lot 18, Mattox Subdivision. Council.

Main Motion is back on the floor as postponed on July 24, 2006: WYTHE/McLAY - MOTION FOR THE ADOPTION OF RESOLUTION 06-87 BY READING OF TITLE ONLY.

There was no discussion.

WYTHE/McLAY - I WOULD MOVE TO AMEND RESOLUTION 06-87 BY REPLACING WITH RESOLUTION 06-87(S)

There was discussion on the pros and cons of the substitute, as to what is in the best interest of the Community and the City of Homer. Statement that it is in the best interest to acquire the highest bid.

VOTE: (primary amendment - Resolution 06-87(S)) YES: HEIMBUCH, McLAY, WYTHE.

NO: NOVAK, SHADLE, STARK.

Mayor Hornaday stated for the record, "I have been told by my predecessors that I have broken more tie votes than they did, just thought I'd throw that in."

TIE VOTE: MAYOR: NO.

Motion failed.

There was some further discussion pro and con.

City Manager Wrede responded to Council inquiry that a yes vote would put this property back on the tax rolls.

Discussion continued.

VOTE: (main motion, unamended) YES: McLAY, SHADLE. STARK, NOVAK..

NO: HEIMBUCH, WYTHE.

Motion carried.

C. Consent Agenda Item D. If approved under agenda approval Substitute Resolution 06-91(S), Of the City Council of Homer, Alaska Awarding the Contract for the Kachemak Drive Phase One Water and Sewer Project to the Firm of Herndon Construction LLC of Homer, Alaska in the Amount of $967,669.00 and Authorizing the City manager to Execute the Appropriate Documents City Clerk

Memorandum 06-119(S)(1) from Public Works as backup.

McLAY/SHADLE - I'LL MOVE FOR THE ADOPTION OF RESOLUTION 06-91(S) BY READING OF TITLE.

There was no discussion.

McLAY/NOVAK - I MOVE FOR POSTPONEMENT OF 06-91(S) UNTIL OUR NEXT MEETING. (August 28, 2006.)

There was no discussion.

VOTE: YES: NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

D. Consent Agenda Item K. Resolution 06-102, Of the City Council Finding the Need to Create the Bayview Gardens Sewer Improvement District/Assessment District and Setting a Public Hearing Date for Monday, September 25, 2006. McLay. Recommend adoption.

WYTHE/NOVAK - I WOULD MOVE FOR THE ADOPTION OF RESOLUTION 06-102.

It was noted that Council just had this before them in April and it was a failed motion.

Council comments: The history of this proposed Improvement District was noted as reflected in the whereas clauses of the Resolution, with no qualifying percentage to move forward with the LID. Reading the whereas statements it is very easy to identify the number of times and ways that this area has been looked at for the purposes of developing an LID and has continually and repeatedly failed to pass the volume of support within the LID community. The purpose of the LID is to gain and garner support from those who will benefit from the improvement. If the property owners were unable to garner DEC approval then there would be a viable reasoning for forcing them into an LID, at this point no one has brought forth any documentation, which would verify that they are unable to acquire acceptable facilities there. Ascertain that this is a public health issue and that the City engineer can tell the Council about this. When there is problem with public health with the sewage the Council has a duty to move ahead to resolve the issue.

Councilmember Wythe noted for the record, "That the City engineer lives in this area and so has a very distinct potential of a biased bent on whether or not it should have the sewer system there, but I still have yet to see documentation, verifiable, supported documentation that shows what is specifically the hazard to the health and that is why I come back to the DEC approval. If you can acquire a DEC approval for your septic system, the very premise of that is that is supposed to be a safe septic system. So that is the part I am not seeing and I have heard no body come forward with compelling evidence that this is a safety hazard up there"

Discussion continued. A minority of people are trying every which way to find the numbers that will support this, not necessarily a bad thing. There is not a preponderance of evidence of how bad this health issue. Do not want to get into a position of Council forcing people to do an extension capital improvement project if it is just the flip of a coin. Relay of discussions with DEC regarding Kachemak Drive Sewer, that DEC stated that approval of a septic system is not required with a single family residence and that DEC would not do anything with Kachemak Drive that it is a local issue. Passing this does not pass the LID requirement, but brings it to public hearing and there will be time to voice in on it, that it would be advantageous to go forward with it before making a decision to back it of fail it. Concern expressed about the Council finding the need and needing to hear from the public.

NOVAK/HEIMBUCH - I WOULD LIKE TO AMEND THE RESOLUTION TO SAY A RESOLUTION OF THE CITY COUNCIL QUESTIONING THE NEED TO CREATE THE BAYVIEW GARDENS SEWER IMPROVEMENT DISTRICT/ASSESSMENT DISTRICT AND SETTING A PUBLIC HEARING TO EVALUATE THE NEED AND SUPPORT FOR A SEWER IMPROVEMENT LID.

Councilmember Novak stated that this revision clarifies what the Council is trying to accomplish, to hold a public hearing process for the people in that area to come down and comment on it, following that the Council or the people can make a decision to move forward with an LID.

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

Motion carried.

There was no further discussion.

VOTE: (main amended motion) YES: SHADLE, STARK, NOVAK, McLAY.

NO: WYTHE, HEIMBUCH.

Motion carried.

E. Consent Agenda Item R. Resolution 06-109, Of the City Council of Homer, Alaska Awarding a Contract to the Firm of Corporate Express in the Cumulative Amount of $125,997.00 for Furniture at the New Homer Public Library. City Manager. Recommend adoption.

WYTHE/SHADLE - I HAVE A MOTION FOR ADOPTION RESOLUTION 06-109.

City Manager Wrede responded to the Councilmember inquiry that about the surplus amount subtracting the $125,997.00 from the budget of $250,000.00, that part of this was allocated for some specific things, part spent on computers and some other things and that he does not know what is left, but could bring the Council an accounting of that. He explained that the conflict in the Memorandum and Resolution is due to a correction made to the Resolution amount that was not known at the time the Memorandum was written.

Councilmember Shadle stated that the City Manager's report was real good and appreciated. He advised the Council that one of the reasons for bringing this up was that when the City receives grant money, such as in this case, if the City does not follow its own rules it could lose the grant money. He noted that it is important to follow the rules, that this was something that got missed in the procedures and that the City Manager did a good job of correcting it.

VOTE: YES: NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

HEIMBUCH/SHADLE - I MOVE TO ADOPT RESOLUTION 06-108 BY FORMER READING OF TITLE DURING CONSENT AGENDA READING.

Discussion: Just got done discussing the sale of land with the promised PILT (Payment in Lieu of Taxes) payment to come down the road in the future. There are two kinds of categories in state law regarding exemptions, some required by state law and some are local government discretionary, which these are in that category. The Borough separates these out and tells the local government which are automatic and which the local government has the option on. This Resolution includes property from a major employer in the community, perhaps the major employer in this community and all its funds are from the state and feds and why not charge them a moderate amount of property tax. How did the Chamber and Community Mental Health status change from last year?

City Manager Wrede responded to Council inquiry about property tax status change for these two entities that it is the same situation, as he understands it, that happened with the Senior Center wherein the Borough had been giving them the exemption as though it existed and just recently realized that the City never, actually took the legal step to exempt them. This is another "cleaning up the books" kind of thing.

Discussion continued: Regarding the state mandated exemption, was that language followed for a reimbursement for a PILT in the same breath. This is not a requirement. Unknown if there are reimbursements for the taxes. Whole issue of PILT is really starting to burn.

HEIMBUCH/SHADLE - I WOULD LIKE TO STRIKE COMMUNITY MENTAL HEALTH FROM THE LANGUAGE IN THIS RESOLUTION.

There was no further discussion.

VOTE: (primary amendment) YES: HEIMBUCH, WYTHE, SHADLE.

NO: STARK, NOVAK, McLAY.

TIE VOTE: MAYOR: YES.

Motion carried.

There was no further discussion.

VOTE: (main motion as amended)YES: HEIMBUCH, MCLAY, WYTHE, STARK.

NO: NOVAK, SHADLE.

Motion carried

G. M. Resolution 06-104, Of the Homer City Council Confirming the Assessment Roll, Establishing Dates for Payment of Special Assessments, and Establishing Delinquency, Penalty and Interest Provisions for the East End Road Water and Sewer Assessment District. City Clerk. Recommend adoption.

Placed under Resolutions as Item G.

McLAY/NOVAK - I MOVE FOR THE ADOPTION OF RESOLUTION 06-104 BY READING OF TITLE.

There was no discussion.

McLAY/HEIMBUCH - I'M GOING TO AMEND THIS RESOLUTION TO READ, WANT TO CHANGE THE DOLLAR FIGURE TO READ FOR THE ASSESSMENT AT $10,620.29. (Amendment also includes the assessment roll)

Discussion. Reason for this is on the 7th of July the Property Owners received a final assessment for the $10,620.29 and three days later they received 2nd final assessment of $11,778.10, because of an oversight and mistake made in house. Legally a final payment or final cost cannot be changed to someone for a service being rendered after the final bill, the final bill has got to be final, one cannot change the final bill. Error was that there had been a combination of lots that had been overlooked at the first notice. The final bill reasoning does not necessary apply, if the $11,778.10 is the correct amount then who is going to pay the difference if billed for a smaller amount? Is it legal to use the City funds to pay this difference? The money would come from the HAWSP, unknown regarding legal ramifications.

WYTHE/NOVAK - MOVED TO POSTPONE THIS UNTIL THE NEXT MEETING TO REVIEW THIS BECAUSE IF THE REGULATION SAY.... (August 28, 2006)

Councilmember Wythe stated that she wants this matter looked into clearly regarding legalities and fiduciary responsibilities and wants verification that the Council can pay the difference out of HAWSP.

City Clerk Calhoun noted that when the Council brings this back they will need to amend the payment due date.

Council discussion: Emphasized the importance of being responsible for actions and to have all ducks in a row before pulling the trigger, interjecting comment about private business and billing. All of the departments need to keep track of what they are doing and to do it in a proper manner and not to try to figure out who to dun for this to come out on top. Important to postpone to get the legality question answered.

VOTE: (postponement) YES: WYTHE, STARK, NOVAK

NO: McLAY, SHADLE, HEIMBUCH.

TIE VOTE: MAYOR: YES.

Motion carried.

COMMENTS OF THE AUDIENCE

Audience comments upon any matter.

Glenda L. Denton, Neighborhhood Baycrest and lives on Judy Rebecca Court and owns lots 37 and 38, read a letter supportive of the neighborhood regarding the proposed overhead utility lines from Judy Rebecca Court in the Country Club Estates to a developing subdivision located 300 feet down and at a distance of 690 feet over the bluff's edge. She noted the neighborhood received notice of this about six weeks ago. She relayed that the neighborhood has tried, relentlessly, to understand how such a plan that appears to be highly destructive to a fragile bluff and neither feasible or cost effective, could be legally sanctioned. She reported that they have pursued this on every government level, City Borough, State and Federal and so far the State Regulatory Commission has requested HEA to cease installation until the Consumer Protection Office has had an opportunity to review and investigate, which on August 11 and 14, the ACOE issued a stop work order for HEA until they could visit the work site. It is now time for the City and Borough to join in on this effort to bring about positive changes in the community. As citizens of good faith and good Homer residents, she advised that they would like to volunteer their example of their situation as a learning opportunity area for all to discover the gaps between the City and Borough regulations. To detour similar developers from being able to twist the current loop holes to reach beyond their proposed intents and as a launching point by which to amend antiquated policies and develop new regulations that address current challenges now facing the rapidly expanding community. She advised that they do not understand where the judicial boundary lies between the City and Borough authorities and who should be responsible for permissions, waivers, exceptions and support. She noted that the are asking for the City, along with the other entities, to examine this case. She provided a list of concerns:

To date the City of Homer has honorably denied every single proposal of Country Club Estates.

This encouraged them to subdivide through the plat waiver process through the Borough, whose records also document many objections.

Although Country Club Estates has found permission, they have had to jump from one loop hole to another and subsequently the subdivision has developed in a slip shod way with disregard for accessibility and utility easements.

They would like an investigation into how Country Club Estates could get their original waivers based on the remoteness of their property. The claim that their only access was by marine highway and noting no electricity, now a year later have four property owners requesting power.

How is it that they were allowed to attain and now how after subdividing are they able to maintain this rural residential status within the City limits.

Why is there no provision in any plan or permit that address the highly fragile bluff erosion issue?

What about the City ROW regulations, particularly 11.20.020, which highlights the needs for an erosion control plan and 11.20.090 which requires the need for alerting the Public Works Engineer when a developer makes major changes, like continuing to subdivide? It states that any proposal needs approval in writing.

How does City Code 21.44, very specific about erosion and landscaping issues, fit into this puzzle?

How come no one in their subdivision has been contacted by either the City or the Borough on any aspect of any portion of these proposals and happenings. Even though the consequences highly affect their properties and homes.

What is the City's and/or Borough's level of responsibility for permits, waivers and special circumstances and who is responsible for monitoring these?

What happened to the City's regulation about all new subdivisions putting their utilities under ground?

They are proposing that Country Club Estates be required to bring power to their subdivision under their private road.

What happened to Homer's developing the Steep Slope Ordinance? hen can we look forward to that coming back and to the front burner?

Who within the City and Borough works with the State regarding matters of no adverse impact and no harm done? And the enforcement of Administrative Initiative 175, which addresses erosion?

In regards to HEA Utility proposal, have capital project money granted to HEA been utilized in the Bay Crest Subdivision or in Country Club Estates Subdivision?

What is the cost methodology HEA utilizes and since they are a coop shouldn't those costs break down be accessible to the public? They are proposing hand cutting trees running down the bluff and a helicopter to place poles.

What does it appear that HEA does not have to follow City and State regulations with regard to erosion issues?

She noted that these questions are being presented in a respectful, but curious manner. She noted that they are not anti development only pro responsible development and love Homer and plan to live here for a very long time and want to be involved in determining the direction that their fair City is taking.

Mayor Hornaday made a few comments and questions.

Ms. Denton clarified that they had an attorney, Mr. Meachum, for a few hours who looked at boundaries on utility easements and that they could not afford him, advising that no one in Homer wanted to represent this. She noted that the project has been put on hold as of today. They confirmed that they are working with Jane Tollefsrud, who has received copies of City permits. There is a stop work order from the ACOE, who will be looking at the whole situation tomorrow and the Regulatory Commission said to stop the work until the 18th. She reported on the magnitude of the bluff erosion from 1996 to 2003. The problem is that nobody wants to accept the responsibility of helping the neighborhood accomplish what they want, which is to be treated fairly. She advised that there was an alternative location for the utility that was not accepted, because of the finances of it. She noted that they have asked Homer Electric if it would be possible to show them a cost comparison of running down the center of a private road to cutting 700 feet by hand on a vertical bluff and setting three power towers with helicopters. She emphasized that it is a fragile bluff, their home, their life time investment, that they just want to be recognized and that they do not have millions of dollars behind them in a corporation to be able to fight with an attorney. She stated that they do not want to fight and just want to be treated fairly and that they do not feel that anyone has or wants to listen to them. She noted that they just wanted someone to acknowledge that there is an ordinance that says that it cannot adversely impact adjacent properties, interjecting that they were not even notified with the exception of one person who had a sign on their property that said there will be legal action if anybody does damage to this bluff.

Mayor Hornaday advised that the City was advised by Counsel that it does not have the authority to issue a stop work order.

City Manager Wrede confirmed that he did not know about the stop work order. He noted that there are a lot of pieces to this and relayed some the City involvement with issuing the permit to HEA to put the power pole and overhead lines in a City right-of-way and that erosion was a big concern. He noted that they had a meeting with HEA, had four people there and had a soils expert and that it they came away convinced that erosion was not going to be a big issue just for the power pole and overhead lines. He pointed out that they were more concerned if HEA were going to try to trench it. HEA is going to cut the alders, but not dig up the roots nor get in there and really work it and that is why they are going to do it by hand. He relayed that the concern was that the least damage was to do this overhead rather than to have a back hoe in there, digging a trench and trying to put it under ground. The City was convinced that they were going to do their best to deal with the erosion issues and were hoping that a different alignment would be found. He acknowledged that the power pole is a bummer for the property owners and recognized that it would screw up the view shed. Now there have been a bunch of other issues raised about the development that is going on that they are looking into, the Planning Department is talking to the Borough about whether or not the Borough might have been mislead with this whole plat waiver issue. Originally that was supposed to be four lots and now there is talk about more and more people going down there. He stated that he wanted everybody to know that the City and Borough, together, are looking at that issue.

Ms. Denton reiterated that lack of notice to the neighboring/adjacent property owners of work that was going to happen in their own neighborhood and in her yard. A letter would have prepared them, interjecting that she came home from Anchorage and there were trees cut across from her property that were left in shambles. She stated that she would like to give the documentation that she has to the Mayor to look at, that shows the road, the driveway, the cave ins, which did cause erosion and therefore, in 2003 they lost a severe amount of their bluff right under neath of that. Just for Homer and their own investments, she urged that this be looked at in a matter that is fair to everybody involved. She expressed wonder at how this could be designated as rural wilderness area, which is how they got the waiver at the Borough.

Shirley Thompson voiced agreement with Ms. Denton's comments and interjected such during Ms. Denton's comments. She stated that their Borough Assembly person sees this as a joke. There needs to be a new law that whenever a plat waiver is issued the people that it effects should be notified. She reiterated and emphasized the lack of notice, adding that these people really did not qualify for a waiver. In response to the Mayor, she and Ms. Denton advised that they are in the process of asking the Borough to reverse this waiver.

Mayor Hornaday recommended that they talk to their Borough Assembly person and stated that the City will look into this, adding that it is not an easy issue and that he does understand their concerns.

Ms. Denton clarified that they are not asking for assurances, but are asking for someone to consider them instead of being sent to someone else; the Borough sends us to the City saying that the City should be protecting you, the City asks what the Borough is going to do. She noted that, in reality, they are losing weeks of work and nights of sleep. She reiterated that this is their life time investment and that they came here to live a life style that they desired. She responded to the Mayor about the surveying process, downed trees, effects to her property and et cetera.

Shirley Thompson advised the Mayor and Council that when "they" met with HEA there was never a discussion and a second meeting was scheduled, but "they" said they were not coming because "we" were going to have an attorney there. She reported getting a message on her answering machine that they had been advised by their attorney not to attend or participate in the meeting, because "they" were only coming to inform "them". She replied to the Mayor by asking if he had ever tried to take up anything with HEA, adding that they sort of bull doze over one.

Ms. Denton asked if anyone would like to say anything to them, if they feel threatened, if they own property here, if anyone would feel threatened if the same thing were done to them in their yard or on their bluff? She stated that she is just asking for consideration, that is all, that is all that they would like.

Bryan Zak, member of the Bay Crest Alliance and a Planning Commissioner, commented that the process at the Borough was that the plat waiver was granted against recommendation, so the process is kind of broken and is kind of what brought this all about. The folks who applied for the plat waiver had commented to the Borough and made it seem real similar to Bear Cover, with the only access via the ocean and things like that. He advised the Council that there were a lot of things said that the Borough took into consideration when granting the plat waiver, which at this point has gone a complete 180 degrees against what "they" said they were going to do when they were granted the plat waiver. He stated that he really feels for these folks and that he is involved in it because the top of his house is like right on the bluff that they are going to cut into. He voiced his opinion that the Steep Slope Ordinances needs to be brought back and looked at, that there are some things in City Code that does say if "they" cause damage that they will be liable. The reason the alternative routes were not considered, as he was told by the homeowners below, was because of the liability factor and that they did not want to give any confirmation that they would be responsible in the future and that if HEA took the route that they did, that HEA would be responsible to the homeowners. He restated that he really feels for these home owners, he is involved both from a Planning Commission standpoint with the process overall and as a land owner. He expressed his thought that this will get resolved tomorrow with the ACOE review. He thanked the Mayor and Council.

COMMENTS OF THE CITY ATTORNEY

City Attorney Tans was not present.

COMMENTS OF THE CITY CLERK

City Clerk Calhoun noted the Fiscal Note on page 96 that goes with Resolution 06-104 that goes with the East End Road Water and Sewer Assessments and pointed out that the original assessment that the property owners signed off on was $15,609.97, that the accurate assessment is $11,778.10, well below the assessment amount that the property owners signed off on although the error amount was $10,600.79, which was corrected to the $11,778.10.

COMMENTS OF THE CITY MANAGER

City Manager Wrede had no comment.

COMMENTS OF THE MAYOR

Mayor Hornaday had no comment.

COMMENTS OF THE CITY COUNCIL

Councilmember McLay stated that this was a good meeting, that there is one thing that he has been going to bring up regarding presentations and that a lapel mic is needed. He was advised that the City has one, he noted that it needs to be available then.

Councilmember Heimbuch had no comment.

Councilmember Shadle stated that he may miss the first meeting in September due to moose hunting.

Councilmember Stark had no comment.

Councilmember Novak commented on the last discussion by the two women from the Baycrest Alliance, that there was a power pole issue here when the repaving was done up by the hospital a year ago and the neighbors did not want the big poles, but that was the way it ended up because of the issue with the paving company and so on and so forth. He stated that this went on for quite an while and was kind of, compared to this, maybe more straight forward. He noted that they were rightfully upset, but it was too late in the process to do anything, this one is not too late in the process and these people have an extremely legitimate complaint. He noted that he is very familiar with the property down there, that he knows the history of how that has been going and that he does know that mis information and deception have been the order of the day there. Mr. Novak emphasized that these people have every right to step forward and complain to anybody that will listen. He asked that the City Manager do his best to work with HEA to correct this situation so that "we" find an alternate route. He pointed out that there are maybe four people down there that requested power, that they bought that property based on water access, and they got a road that goes down there that only works in the summer, because it is completely eroded off in the winter. He voiced his thought that to put all of these people at risk or through this grief for someone who bought something at face value, who is now trying to make it into a subdivision at the cost of other people is totally inappropriate. He expressed total agreement with the people and that he would like to see some effort by the City to set this right, find an alternate route and if they are going to get power - find another way. He commented that as a member of HEA and consumer, paying a bill every month, that his question is, "Am I paying for this line to go down there? Who is paying for this? He stated that he does not want to pay for this line for those four people down there, that they can pay for it. He thanked the Council.

Councilmember Wythe interjected that Councilmember Novak is not paying for this line. She noted that on here AML follow up note that they will be having a Retirement Management Board Meeting in Anchorage on August 30th and that she would be interested in attending, on behalf of the City, if she can get time off from work and if that is a supported concept.

ADJOURNMENT

There being no further business to come before the Council, Mayor Hornaday adjourned the meeting at 8:57.42 p.m. The next Regular Meeting is scheduled for Monday, August 28, 2006 at 7 p.m. and the next Committee of the Whole is scheduled for MONDAY, August 28, 2006 at 4 p.m. All meetings scheduled to be held in the Homer City Hall Cowles Council Chambers located at 491 E. Pioneer Avenue, Homer, Alaska.

Candidacy Filing Period for Mayor (Incumbent James C. Hornaday) and Two Councilmembers (Incumbents are Dennis Novak and Val McLay) opens August 1st at 8 a.m. and closes August 15th at 5 p.m. City Clerk's Office.

________________________________________

MARY L. .CALHOUN, CMC, CITY CLERK

Approved: ______________________

1. Not know what Commission.

2. Video on the fish and game, hard on the bottom dragging.