Session 04-19, a Regular Meeting of the Homer City Council was called to order at 7:03 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.

Committee of the Whole met from 4:02 p.m. - 5:16 p.m. and Council conducted a Worksession on CIP and Legislative Requests from 5:31 p.m. - 6:55 p.m. Both were held in the Homer City Hall Council Chambers.

PRESENT: COUNCILMEMBERS: BECK, FENSKE, LADD, NOVAK, STARK, YOURKOWSKI.

STAFF: ACTING CITY MANAGER BAUGH CITY CLERK CALHOUN

PUBLIC WORKS DIRECTOR MEYER

Department Heads may be called upon from time to time to participate via teleconference.

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:

Consent Agenda - substitution packet pages 98, 100, 102, 103 and 149.

Ordinance 04-43, Emergency Ordinance Authorizing the Expenditure of Water and Sewer Reserve Account Funds in an amount not to exceed $15,775.00 to Purchase a New Water Meter Reading System with Memorandum 04-123 as backup.

Memorandum 04-124 additional backup to Ordinance 04-42.

PUBLIC COMMENTS UPON MATTERS ALREADY ON THE AGENDA

Public Comments on matters already on the agenda with the exclusion of public hearing items:Ordinance 04-38, Authority to make Revisions to Ordinance 04-11(A); Ordinance Appropriate Funds from the HAWSP in the Amount of $180,000.00 to Replace Old PVC Water Pipe with HDPE Pipe Along East End Road; Ordinance 04-40, Accepting and Appropriating a Reimbursable Grant not to Exceed $9,000.00 from the Department of Military and Veteran Affairs Division of Homeland Security and Emergency Management for the Hazard Mitigation Project; and Ordinance 04-41,Amending Homer City Code Chauffeur's License, Paragraph 8.12.200(a)(2), to Specify that the Applicant shall Possess a Current Alaska State Driver's License.

There were no public comments.

RECONSIDERATION

None scheduled.

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.)

Councilmember Yourkowski asked that Resolution 04-75 be placed on the Regular Agenda.

A. Homer City Council unapproved meeting minutes of August 9, 2004 Regular Meeting. City Clerk. Recommend approval.

B. Ordinance 04-42, Of the City Council Accepting and Appropriating A US Department of Homeland Security Matching Grant of $36,000.00 FY 04 Assistance to Firefighters Grant, Appropriating the Sale of Surplus Equipment of $7,500.00 for the Match and Purchase of Equipment and Authorizing the City Manager to Execute the Appropriate Documents. City Manager. (Fiscal Note: Revenue and Expenditure Accounts 151-785.)Recommend introduction for first reading and conduct public hearing and second reading on September 13, 2004.

Memorandum 04-118, from Fire Chief as backup.

Memorandum 04-124, from Fire Chief as additional backup regarding sole source.

C. Added under Agenda Approval: Ordinance 04-43, Of the City Council of Homer, Alaska, Authorizing the Expenditure of Water and Sewer Reserve Account Funds in an Amount not to Exceed $15,775.00 to Purchase a New Water Meter Reading System and Authorizing the City Manager To Execute the Appropriate Documents. City Manager. (Fiscal Note: Funding Source and Expenditure Account 215-378). Recommend adoption as an Emergency Ordinance.

Memorandum 04-123 from Public Works Director as backup.

D. Resolution 04-73, Of the City Council of Homer, Alaska Supporting the Application for a Tier 2 Grant from the Rasmuson Foundation to help Build a New Homer Public Library and Authorizing the City Manager to Execute the Appropriate Documents. City Manager. Recommend adoption.

E. Resolution 04-74, Of the City Council Noting the Insufficiency of the East End Road Water and Sewer Local Improvement District (LID), Authorizing the Deferred Assessment Methodology for Reimbursement of Water and Sewer Improvements and Authorizing the City Manager to Proceed with the Deferred Assessment Process. City Clerk. (Fiscal Note: Deferred Assessments pursuant to Memorandum 04-09(S): 100% deferred sewer assessments are placed on the properties, it would result in a $27,628.33 assessment per parcel. 100% deferred water assessments are the placed on properties, it would result in a $20,919.95 assessment per parcel.) Recommend adoption.

F. Resolution 04-75, Of the City Council Requesting the Alaska Department of Fish and Game (ADFG) to Maintain the Sustainable Harvest of Clams in the Kachemak Bay and Fox River Flats Critical Habitat Areas. Beck. Recommend adoption.

Placed under Resolutions as Item A.

H. Memorandum 04-119, from Finance Director, Re: 2005 Budget Schedule. Recommend approval.

Just after the Mayor read this item and its recommendation, Councilmember Stark asked that Memorandum 04-119 be placed under New Business.

It will be item A. under New Business.

I. Memorandum 04-120, from City Clerk, Re: Request for Executive Session Pursuant to AS § 44.62.310(c)(2), Subjects that tend to Prejudice the Reputation and Character of any Person, Provided the Person may Request a Public Discussion. (City Manager's Performance Evaluation.) Recommend approval and, pursuant to Council's Operating Manual, conduct just prior to Audience Comments unless the Mayor calls for it to be held at another point. Recommend approval.

City Manager's Concurrence for the Executive Session to be conducted without his presence.

J. Memorandum 04-121, from City Clerk, Re: Confirmation of Election Workers for the General/Regular City of Homer Election - October 5, 2004 and all Processes Thereof Pursuant to Homer City Code and as Deemed Necessary by the City Clerk. Recommend approval and confirmation.

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

VOTE: YES: NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

VISITORS

None scheduled.

ANNOUNCEMENTS/PRESENTATIONS/BOROUGH REPORT/COMMISSION REPORTS

A. Parks and Recreation Report from Debbie Poore.

KPB Assemblymember Chris Moss gave a borough report:

• Last meeting the State Scenic Byway designation for the Sterling Highway failed, a 4/4 vote. There is a motion for reconsideration. Primary concern seems to be that if the Sterling Highway gets a State Scenic Byway designation that in some form the State or Federal Managing authorities will have some control over adjacent properties to the road way. This will be before the assembly at the next meeting.

• There are a couple of issues that will be on the borough wide ballot in October.

• It has been fairly quiet.

• Borough having similar budgetary problems as the cities are having. The Borough has had huge draw on their "savings account". The Borough Assembly will be looking at several revenue methods such as taxes.

• The sales tax cap increase to $1,000 failed. There was a motion to reconsider and it failed. There is a 90 day period required prior to any reintroduction of that issue. Assemblyman Moss plans to co sponsor the reintroduction.

• There is a serious intent to reintroduce the sales tax cap due to the significant budgetary short fall at the Borough level, $5 million drawn from the Borough "savings account".

Question and answer points.

• The Borough either has to cut the budget, increase taxes, increase sales tax cap and/or consider other revenue things.

• In light of what is going on with the $ per barrel of oil is the Assembly pushing Juneau to share some of these funds, which are Municipal Permanent Fund/Endowment monies for direct use by communities or borough? Unknown if will come to fruition although it certainly makes sense. Answer: Trickle down theory is not working from the state government to the municipalities. The faucet is shut off and the citizens bear the brunt of that. Whether there is a state tax or a local tax the citizens will be paying that for goods and services.

• General thrust is to do the endowment on a statutory basis rather than a constitutional amendment basis. Would require an advisory vote and would sunset after four years.

• Can't cut the government to the extent necessary and can't raise the taxes to the extent necessary.

• It appears that the borough will be meeting the Code bottoms on the reserve accounts by 2006.

• Funding education? The Borough is not funding anything outside the cap. Co curricular is one thing the borough was looking at cutting prior to the budget adjustment.

• Change in per capital income is one of the components that started to push the budget lower. An addition $780,000.00 had to be funded to the schools to meet the state obligation.

• There was a motion at the budget meeting to cut the funding to schools.

Parks and Recreation Commissioner Debbie Poore gave a Commission Report:

• •Invitation extended to join the Commission on Saturday, September 18th at 10:30 a.m. for a park walk through beginning at Karen Hornaday Hillside Park, to Superintendent's Park, to Triangle Park, to WKFL Park, to Woodside Pocket Park and concluding at the Skateboard Park.

• •The last park walk through was 2001. There will be a three year rotation of the parks through annual assessment of conditions and improvements.

• •New members welcomed are the Student Member - Nyssa Baechler and Commissioner Dennis Gann.

• •Julie Engebretsen, City Planning Tech is working with the Commission.

• •Resolution 04-53 designated Woodard Creek Park.

• •Playground equipment has been requested for Jeffrey Park.

• •Volunteer trash can painting project. Parks and Recreation employees cleaned 20 fifty gallon drums, paint was donated by SBS, volunteers painted the cans. The cans will be placed by Public Works.

• •Two suggestions have been forwarded:

1. A query about lighting for the High School Football Field.

2. Concert proposal with Downward Dawg Productions.

• •This winter the commission will be working on:

Developing a City Park Day, an Adopt a Park Program, an Adopt a Trail Program and Site Plan for End of Road Park, the parking area between the Ferry Office and Land's End Resort.

Winter Carnival fireworks

Park Survey

Parks and Trails Pamphlet

Land Bank Reserve Fund Proposal

Mayor Cushing clarified that the High School Football field is called the Stadium Field and that it is used for a myriad of sports, a multi use field. He inquired if the Commission is making a lighting recommendation on the lighting of borough property?

Commissioner Poore advised that the request for lighting of this field came from the general public, that the Commission forwarded this on to the High School Site Council, today, to let them know that the Commission was getting that kind of query. She reported that the point made to the Commission was that since it is not lit there can't be games in the evening time, therefore, games are held in the daytime when a lot of parents can't attend. She stated that, apparently, there are no lit fields on the peninsula.

Councilmember Ladd advised that he was President of the Kenai Peninsula Activities Association for years and that the lighting issue came to them a number of times. He noted that it is very, very costly to do this lighting in all of the arenas that exist and it would not be cost effective when most of the activities are done during the seasons when there is enough natural light to facilitate outdoor activities.

Library Advisory Boardmember and Building Committee member Kyra Wagner gave a Board Report.

• Thanked the Council for putting the proposition for the Library on the ballot.

• Citizen support is essential and is what funders are looking for. This enables proceeding with more fund-raising.

• Possibility, if ballot proposition passes, that the City may take out a loan.

• Current library was deemed too small 20 years ago.

• New library is almost 5 times larger than the current library.

• Is designed for 20 years in the future

• Present library can have as many as 500 people a day visit during the summer, therefore, the increased size is not extravagant.

• Will not cost five times as much to operate.

• A large portion of the design process has centered on efficiency of space, materials and services.

• Day lighting has been maximize as well as other passive solar benefits while minimizing energy costs.

• Space use has been maximized since there had to be cuts to the square footage to stay within the project budget.

• There is more landscaping to deal with, the cost and care will be minimized by planting native plants like cinquefoil (potentilla), roses, spruce and irises.

• The mechanical aspects of the building efficiently focus on creating a healthy indoor environment while maximizing energy efficiency. All of these considerations go hand in hand with the goal of a Silver LED Certification, the national standards for Leadership in Energy and Environmental Building. This certification facilitated receipt of $75,000 in a Green Building grant from the Kresge Foundation. Homer will be the first grassroots building in the state to have such a label.

• The new library will be a building that Homer can be proud of and is for everyone. There are study rooms for grade school, high school, college, home-school, any students to work on projects and not disturb others. There is an entire room for the children's portion of the library rather than a corner nook so that when Story Hour starts they won't have to take over the main library space like they do now. Kids will be able to be kids and not disturb the rest of the library users. Library users in wheelchairs will be able to go to the end of the rows of book stacks and actually turn around and come up another aisle, something that can't be done now.

• The architects didn't come up with all of this themselves. They have gone above and beyond expectations to hold meetings and strive for input from the community with four public meetings and four public worksessions. They have been in a teleconference with library staff or the building committee almost every other week since the 35% stage. They responded to the feedback at the last public meeting and within weeks responded with a modified design

• Costs down and quality up - by using recycled materials like the maple that will be reused from a Kenai gym floor. Hope to get recycled timbers for columns or trusses rather than steel.

• Council encouraged to review and study the new designs.

• During the Regular Planning Commission meeting on September 1st, the architect will make a presentation.

PUBLIC HEARING(S)

A. Ordinance 04-38, Of the City Council Authorizing the City Clerk to Make Revisions to Ordinance 04-11(A), Pursuant to HCC 1.08.060, Revisor Authority. City Clerk with review and concurrence by the City Attorney and the City Manager. (First Reading August 9, 2004, Public Hearing and Second Reading August 23, 2004.)

Frank Griswold voiced disappointment in hearing ⁽¹⁾ that the story hour is going to be sequestered away, because now he will feel a little self conscious listening in. In testimony, he read a letter, addressed to and copied to the Mayor and Council, regarding his belief that Councilmember Stark had a financial conflict of interest regarding Ordinances 04-11(A),04-33, and 04-34. He noted that he would not be reading the citations into the record. Mr. Griswold maintained that Councilmember Stark also has a financial conflict of interest with regard to Ordinance 04-38. He stated that the basis for this financial conflict of interest is Mr. Stark's ownership of ten acres of land off of Kachemak Drive, that wholesale and retail size limits can affect the potential use and, therefore, property values of large parcels while smaller parcels are unaffected. He asserted that, previously, the Mayor failed to ask the proper questions and failed to receive accurate answers. Mr. Griswold commented about his letter to the Mayor, dated August 1, 2004, attached to the August 23rd letter, wherein he suggested that a legal opinion be obtained. He reiterated that suggestion. He commented about the notation in the minutes of August 9, 2004, wherein Councilmember Stark stated that he purchased the property two years ago, that the property is in the Airport Master Plan and that, as part of that plan, DOT will probably purchase the ten acres. Mr. Griswold advised the Council that the Borough records indicate that Councilmember Stark purchased this property in May of 2003, when the Planning Commission was still deliberating size limits and building design standards. He relayed a conversation he had last Wednesday with Robert Wright who is in charge of purchasing properties for DOT and who informed Mr. Griswold that DOT is not currently in negotiations with Mr. Stark and that there is no project currently underway or anticipated that would involve acquisition of said property. According to Mr. Griswold, Mr. Wright double checked with DOT Planning to ensure his statement. He continued with regard to the Mayor ruling on Mr. Stark's financial interest and the possible result of his participation in discussions and voting on Ordinance 04-11(A) and related Ordinances. He stated that the clearest situation in which disqualifying bias or prejudice is shown is where the zoning officer owns property, the value of which will be directly promoted or reduced by the decision to be made. He commented that if the imposition of size limits and/or building design standards could materially limit Mr. Stark's resale options or otherwise result in a $300 financial loss to him or a family member, then he had a disqualifying conflict of interest in the previous Ordinances and he has one regarding Ordinance 04-38. He emphasized that a Councilmember is supposed to disclose a potential conflict of interest before he participates in the discussion and voting, whereas, in the case of Ordinances 04-33 and 04-34 Mr. Stark did not make that disclosure. He pointed out that minutes of the Council meetings show that weeks later, Councilmember Stark took Lane Chesley, Planning Commission Chairman, to the proverbial wood shed during the Committee of the Whole with regard to Ordinances 04-33 and 04-34. Mr. Griswold declared that Councilmember Stark presented his conflict of interest for a Mayoral ruling, only after he got his licks in and that without Mr. Stark's influence and vote Ordinance 04-34 may not have passed. He stated that if, based on new information, the Mayor determines that Councilmember Stark does and did have a conflict of interest then Ordinance 04-34 should be voided in accordance with the 1992 advice of the City Attorney regarding Councilmember Sweiven's conflict of interest in Ordinance 92-18. He made a couple of additional points: 1)That Councilmember Stark claimed that his property was in the clear zone and that there are to be no structures in the clear zone. Mr. Griswold asserted that as far as he can determine the Stark property is not in any Airport clear zone and wouldn't be unless DOT actually purchased it. 2) Mr. Griswold spoke with the previous owners and stated that they were unaware of any building restrictions imposed by DOT or of any clear zone designation. 3) If DOT were to purchase the Stark property an appraisal would have to be done to establish fair market value and this would be based on the best and highest use. Mr. Griswold stated that it is not difficult to see how zoning restrictions could lower that appraisal. 4) He stated that it appears to him that the airport, at some point, may buy Mr. Stark's property and that it appears to him that it will probably be at about the same time as Time Square gets a plaza, amphi-theater, performing arts center, community center, City Hall and student housing. He thanked the Council.

Mayor Cushing called for a recess at 7:46 p.m., reconvening the meeting at 7:56 p.m.

FENSKE/YOURKOWSKI - MOVED TO POSTPONED ACTION ON ORDINANCE 04-38 TO NEXT REGULAR MEETING. (September 13, 2004)

Comment was made that this will provide time to further examine the specific issues and maybe get some legal advice.

VOTE: YES. NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

B. Ordinance 04-39, Of the City Council Amending Ordinance 04-26, to Appropriate Funds from the HAWSP in the Amount of $180,000.00 to Replace Old PVC Water Pipe with HDPE Pipe Along East End Road and Authorizing the City Manager to Execute the Appropriate Documents. City Manager. (Fiscal Note: Funding Source: Homer Accelerated Water and Sewer Program and Expenditure: East End Road PVC Pipe Replacement $180,000.00. Account 215-829.) (First Reading August 9, 2004, Public Hearing and Second Reading August 23, 2004.)

There was no Public Testimony.

BECK/FENSKE - MOVED FOR THE ADOPTION OF ORDINANCE 04-39 BY READING OF TITLE.

Staff asked the Council to vote this Ordinance down, advised that the amendment to the funding source is not needed, that according to Representative Seaton the unexpended portion of the One Million Gallon Tank Grant may be used, and, therefore, Ordinance 04-26 stands.

VOTE: NO: NOVAK, BECK, FENSKE, LADD, YOURKOWSKI, STARK.

Motion failed.

C. Ordinance 04-40(S), Of the City Council of Homer, Alaska Accepting and Appropriating a Reimbursable Grant not to Exceed $9,000.00 from the Department of Military and Veteran Affairs Division of Homeland Security and Emergency Management for the Hazard Mitigation Project and that the City Manager is Authorized to Execute the Appropriate Documents. City Manager. HVFD. PWD. (Fiscal Note: Revenue: DHS&EM Reimbursable Grant, Account 151-749-4520, Expenditure: Account 151-749 Hazard Mitigation Plan $9000.00.) (First Reading August 9, 2004, Public Hearing and Second Reading August 23, 2004.)

There was no Public Testimony.

FENSKE/LADD - MOVED FOR THE ADOPTION OF ORDINANCE 04-40(S) BY READING OF TITLE. ⁽²⁾

Acting City Manager Baugh responded to Council inquiry that this money is a reimbursement for work already done on the Hazard Mitigation Plan/Project.

VOTE: YES: NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

D. Ordinance 04-41, Of the City Council of Homer, Alaska, Amending Homer City Code Chauffeur's License, Paragraph 8.12.200(a)(2), to Specify that the Applicant shall Possess a Current Alaska State Driver's License. HPD. City Clerk. (First Reading August 9, 2004, Public Hearing and Second Reading August 23, 2004.)

There was no Public Testimony.

NOVAK/BECK - MOVED TO ADOPT ORDINANCE 04-41 BY READING OF TITLE.

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 (Update/Follow up: Ice Rink/Multi-Purpose Facility, Spit Restrooms, Local Boundary Commission - Preliminary Report on Remand Regarding the Impact on Kachemak Emergency Services Area/Service Area of the 2002 Annexation, Library 65% drawings, Northern Dynasty - Port and Harbor Facilities, Use of HARP Funds for a pole barn and possibly equipment purchases pertaining to road maintenance, Kenai Peninsula Borough Regional Advisory Committee, East End Road - DOT estimated that an additional $90,000.00 is needed to replace the PVC pipe referenced in Ordinance 04-39, Scenic Highways Project, Executive Sessions for September 13th on the Hurlen Case (Pioneer Dock) and Seawall Litigation (Ocean Drive Loop Bluff Erosion Control Project).)

Acting City Manager Baugh pointed out that the Library project design is at 65% and that the Council will be asked about proceeding to the 95% plans, which will be bid ready, interjecting that the administration does not want to forward unless the Council says it is okay and that moving forward will keep the project on time.

Councilmember Stark pointed out that the next meeting is only 22 days before the October election, when the loan will be up for approval, and suggested waiting until after the election and not incurring the additional money to go to the 95% stage.

Acting City Manager Baugh relayed the concern that 22 days could kill the season.

Councilmember Novak recalled that the Library Advisory Board people wanted to get the project out to bid, early, prior to the first of the year with the intent that there would be better bids, so this needs to stay on schedule.

Mayor Cushing added that this is a critical time in Washington, D. C, where the final bills are being marked up and passed on. He noted that, independent of what the voters say, the City still has a request into Washington for large portions and possibly enough funding that the results of the vote don't matter. He agreed that it may be optimistic to think that the City would get full funding for the Library project from Washington, but that request is still there for this year's appropriation cycle.

Councilmember Stark inquired if Council comments were desired regarding the use of HARP funds for the pole barn. He was advised that nothing has been decided and that this is still being evaluated as to applicability.

COMMITTEE REPORT

None scheduled.

PENDING BUSINESS

None scheduled.

NEW BUSINESS

A. Consent Agenda Item H. Memorandum 04-119, from Finance Director, Re: 2005 Budget Schedule. Recommend approval.

STARK/YOURKOWSKI - MOVED TO APPROVE THE RECOMMENDATION OF THE STAFF.

Councilmember Stark pointed out that the Council is going to have some serious problems with the budget, that last year the Council found that they did not have enough time on the budget, that more worksession time was needed and that they adopted an additional Council meeting in the middle of the month to adopt the budget. He suggested that the potential problems with the budget and, depending on the outcome of the proposed sales tax increase, that the Council could be scratching around to try and find some money.

STARK/NOVAK - MOVED TO AMEND THAT THE WORKSESSION ON OCTOBER 25TH START AT 4 P.M. AND THE NOVEMBER 22ND REGULAR MEETING INCLUDE A PUBLIC HEARING AS WELL.

There was no discussion.

VOTE:(primary amendment 1.) YES: NON OBJECTION. UNANIMOUS CONSENT.

There was no further discussion.

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

Motion carried.

RESOLUTIONS

A. Consent Agenda Item F. Resolution 04-75, Of the City Council Requesting the Alaska Department of Fish and Game (ADFG) to Maintain the Sustainable Harvest of Clams in the Kachemak Bay and Fox River Flats Critical Habitat Areas. Beck. Recommend adoption.

BECK/STARK - MOVED FOR THE ADOPTION OF RESOLUTION 4-75 BY READING OF TITLE.

There was a brief comment leading into the amendment.

YOURKOWSKI/BECK - MOVED TO AMEND RESOLUTION 04-75, IN THE TITLE AFTER THE WORD "MAINTAIN" DELETE "THE SUSTAINABLE HARVEST OF CLAMS IN THE KACHEMAK BAY AND FOX RIVER FLATS" AND REPLACE WITH "THE EXISTING POLICY REGARDING ON BOTTOM AQUATIC FARMING IN" SO THE TITLE WOULD READ "A RESOLUTION OF THE CITY COUNCIL REQUESTING THE ADF AND G TO MAINTAIN THE EXISTING POLICY REGARDING ON BOTTOM AQUATIC FARMING IN CRITICAL HABITAT AREAS." AND IN THE NOW, THEREFORE, BE IT RESOLVED, DELETE EVERYTHING AFTER "MAINTAIN THE" AND INSERT "EXISTING POLICY AND THE PROCESS THAT CREATED THAT POLICY REGARDING ON BOTTOM AQUATIC FARMING IN CRITICAL HABITAT AREAS." AND ADD "BE IT FURTHER RESOLVED THAT THE HOMER CITY COUNCIL DOES NOT SUPPORT ANY PROPOSED CHANGES TO 5AAC 95.300 AND 5AAC 95.610 ALLOWING ON BOTTOM AQUATIC FARMING IN CRITICAL HABITAT AREAS."

Discussion on the amendment was that it clarifies Council's intention.

Councilmember Stark commented about a proposed amendment that he had to add a Whereas clause, "The Council feels that rather than opening the entire Bay to on-bottom mariculture and then considering applications to lease, a proper method would be to only open those areas that do not impact the public and then considering applications to lease." and a new NOW, THEREFORE, BE IT RESOLVED CLAUSE, "that the Homer City Council opposes repeal of the on-bottom farming ban in Kachemak Bay and Fox River Flats Critical Habitat areas." He suggested that Councilmember Yourkowski's amendment accomplishes substantially the same purpose and voiced his opinion that his own proposed amendment accomplishes more of what former Representative Scalzi had proposed a few years ago. Mr. Stark stated that he likes the positiveness of the amendment.

NOVAK - MOVED TO STRIKE THE WORD "ALLOWING" FOR CLARITY IN THE LAST STATEMENT. (ALLOWING ON BOTTOM AQUATIC FARMING IN CRITICAL HABITAT AREAS." )

There was a discussion about the validity of the word "allowing".

The secondary motion died for lack of a second.

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

Motion carried.

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

Motion carried.

CONDUCT EXECUTIVE SESSION UNLESS THE MAYOR CALLS FOR THIS AT AN EARLIER TIME.

A. Executive Session Pursuant to AS § 44.62.310(c)(2), Subjects that tend to Prejudice the Reputation and Character of any Person, Provided the Person my Request a Public Discussion. (City Manager's Performance Evaluation.)

Council may take action or make a statement.

Mayor Cushing recessed the meeting to Executive Session at 8:27 p.m., reconvening the Regular Meeting at Back at 9:13.5 p.m.

Councilmember Fenske stated that the Council met in Executive Session and discussed the City Manager's Contract and the Mayor will meet with the City Manager to discuss Council's recommendations.

COMMENTS OF THE AUDIENCE

Audience comments upon any matter.

There were no audience comments.

COMMENTS OF THE CITY ATTORNEY

City Attorney Tans was not present.

COMMENTS OF THE CITY CLERK

City Clerk Calhoun encouraged everyone to vote tomorrow.

COMMENTS OF THE CITY MANAGER

Acting City Manager Baugh had no comment.

COMMENTS OF THE MAYOR

Mayor Cushing advised that he had dinner, tonight, with Northern Dynasty, Pebble Gold and Copper Mine, and that they are considering the technical aspects of Homer Port and Harbor and what the cost analysis is for using this port or any port for shipping on their project. He reported that he attended the Alaska Conference of Mayor's meeting on Saturday and met with about 35 or 40 administrative folks and Mayors in Kenai and that he had the opportunity to say his good byes to the Mayors he has been meeting with for eight years and that he had a lot of fun. He commented about the number of Homer projects, the funding thereof and comments from other communities who are not enjoying this success. He noted that this is an example of the development, progress and growth in Homer, adding that many other communities are "way singing the blues" and that bush cities are clambering for anything to just to keep their City Halls open and some of the services available. He pointed out that many of these projects are the result of public support and that Homer is fortunate in grant acquisition.

COMMENTS OF THE CITY COUNCIL

Councilmember Fenske echoed the Mayor's comments and emphasized that all over the state the financial crunch is being felt. He commented on the impact of the lack of revenue sharing and the increase in insurance rates, which are divesting some communities. He encouraged the voters to pay close attention to what is happening, whether it is the percent of market value, as proposed, or other avenues of revenue or places to cut services that do not create havoc. Relaying a situation in a community, he voiced chagrin about an experienced tenured teacher being replaced, as a budget reduction, with a new untenured less expensive and less experienced teacher. He commented on the impacts to the family. He noted that Homer is very blessed.

Councilmember Stark stated that the State of Alaska felt that cities would not dissolve themselves, because of the onerous requirements, legal requirements and administrative requirements to go through all the hoops. He noted that what was found, such as in the most recent case of the City of Nikolai, that they just locked the doors and walked away, that was the end and there was nothing more to be done by the City. He commented that this is absurd, not only does it dissolve a City legally, but it dissolves it physically. He advised the Council that he would have a full report on the AML session for the next packet and urged the Council's attendance at the AML Conference Week in Fairbanks the second week of November.

Councilmember Ladd thanked Dean Baugh for sitting in the Manager's shoes and doing such a great job and thanked Carey Meyer for helping with the Capital Improvement Plan during the worksession. He stated that he is pleased with the way the Council placed on the top end of many of those categories the need to look at the Deep Water Dock, the harbor, the port and also to be looking, with some vison, down the road in terms of what will be needed for water in the area in the next twenty and thirty years.

ADJOURNMENT

There being no further business to come before the Council the meeting was adjourned at 9:17 p.m. The next Regular Meeting is scheduled for Monday, September 13, 2004 at 7 p.m. The next Committee of the Whole meeting is scheduled for Monday, September 13, 2004 at 4 p.m. All meetings scheduled to be held in the Homer City Hall Council Chambers located at 491 E. Pioneer Avenue, Homer, Alaska.

_____________________________________

MARY L. CALHOUN, CMC, CITY CLERK

Approved: _______________

clerk@ci.homer.ak.us, 235-3130, home number 235-2843.

1. Comment regarding Library Advisory Boardmember Kyra Wagner's report about the New Library design.

2. Council moved to adopt Ordinance 04-40, and the mayor read the Fiscal note information from the Substitute which is the only difference in the two and Council adopted the Ordinance with the Substitute fiscal note.