Session 06-30, a Special Meeting of the Homer City Council was called to order at 7:00 p.m. on December 4, 2006 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, NOVAK, ROBERTS, SHADLE                                                                                   (telephonically), STARK, WYTHE

 

                        STAFF:                                   DEPUTY CITY CLERK JOHNSON

                                                                        CITY MANAGER WREDE

                                                                        LIBRARY DIRECTOR HILL

                                                                        PERSONNEL DIRECTOR HOBBS

                                                                        PORT AND HARBOR DIRECTOR DEAN

                                                                        PUBLIC WORKS DIRECTOR MEYER

                                                                                                                                               

Council met for a Worksession from 5:30 p.m. to 6:48 p.m.  Agenda items were the 2007 Budget.

 

Councilmember Shadle requested participation telephonically.

 

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.

 

PUBLIC HEARING(S)

 

A.        Ordinance 06-62, Of the City Council of Homer, Appropriating Funds for the Calendar Year 2007 for the General Fund, the Water - Sewer fund, the Port/Harbor Fund, Debt Funds, and Capital Reserve Funds (Conditional Expenditures). City Manager. Fiscal Note: General Fund $10,521,747.00, Water-Sewer Fund $3,343,780.00, Port/Harbor Fund $3,275,528.00 Capital Projects $2,519,372.00, Internal Service Funds $1,524,000.00, Total Expenditures:$21,184,427.00 (First Reading and Introduction November 20, 2006, Public Hearings November 20, 27 and December 4, 11 2006, Second Reading December 11, 2006.)

 

B.1.      Resolution 06 - Number to be assigned, Of the City Council of Homer, Alaska Extending the City Attorney Contract with Perkins Coie for the Period of January 1, 2007 through December 31, 2007 in the Amount of $7,650.00 per Month for Forty Five Hours, Increasing the Hourly Rate from $185.00 to $200.00 and Authorizing the Mayor to Execute the Contract. City Clerk

 

B.2.      Resolution 06 -Number to be assigned, Of the City Council of Homer, Alaska Revising Certain Portions of the Port and Harbor of Homer Terminal Tariff No. 600. City Clerk.

 

Val McLay, city resident, favors the feasibility study for the East Boat Harbor expansion, citing the importance of maintaining the Coast Guard presence in the Port of Homer.  Harbor revenues provide a financial benefit to the City as a whole and Coast Guard personnel and their families generate a larger tax base.

 

Frank Griswold, city resident, referenced Memorandum 06-194 from City Manager Wrede outlining the attorney contract.  He questioned the average hourly fees of $250 and that figure remaining below Alaska standards as outlined in the memorandum.  Mr. Griswold is unable to verify the truthfulness of the statements after comparing other municipal attorney fees.  He suggested an in-house attorney at an annual cost of $250,000 including benefits, in comparison to Attorney Gordon Tans guaranteed $91,800 per year plus added fees for litigation.  In 2004 the City paid $565,429 for professional services and paid $629,788 in 2005.  Reducing legal fees by half and better access to legal advice would be cost effective. 

 

Representative Paul Seaton, presented two memoriam plaques to the City Council for past Mayors Ralph Cowles and Harry Gregoire.  In the Legislature the full rate of PERS/TERS liability came to the forefront instead of the 5% increments that were hiding the cost.  The State has assumed the 5% costs, although it is unlikely the State will assume the 38% to 42% costs.  Every city and school system statewide now has to address the problem, and the Legislature will be addressing it in some partial way.

 

Mayor Hornaday asked about revenue sharing.  Representative Seaton said there are a number of legislators looking at it on a sustainable basis.  One proposal is to increase the Amerada Hess fund to allow it to generate a directive source of revenue.

 

Councilmember Stark commented that AML is in favor of $175M for revenue sharing.  His concern is the small cities that are having trouble paying their light bill.  His hope is the Legislature will come up with something that keeps the lights on in small cities.  Representative Seaton believes the amount will be in the $50M range with deposits to the Amerada Hess fund to increase it over time.  

 

Nancy Lord, city resident, appreciates the Council’s fiscal responsibility as to reserves and depreciation accounts.  She is worried about the squeeze on city services.  Two-thirds of the $1.2M increase is for PERS obligations and her thought is the State needs to be responsible.  Ms. Lord advocated for the library position, stating revenues and services are increasing with the growing community.

 

Linda Martin, long time city resident, has lived in many different places and has found libraries with both poor and great qualities.  Homer’s new library with space has a wonderful librarian at the top of the game.  People expect to see more books on the shelves, but with increased usage and additional workload staff is unable to add new books.  The book collection and service needs to be revved up as there is a new interest in the library.  Libraries are crucial to a real community.

 

Eileen Faulkner, city resident, has volunteered in the library for five years helping process books.  Since September she has put in over 60 hours helping with the backlog of books to the shelves for the customers.  Volunteers are great, except many times do not show up or don’t know what to do.  The library was understaffed in the old facility and is definitely understaffed in the new facility.  Staff is needed to help the customers, especially before the onslaught of tourists next summer.

 

Cleo Webb, Friends of the Library, noted the years of hard work to get the new library.  She encouraged the Council to fund at least one more library employee as the staff is getting tired and burned out and there are many books to process.  

 

Thomas McDonough, city resident, advocated for budget increases for both the Pratt Museum and the library.  With a growing family he has found the Pratt and library are a great network for young parents.  He urged the Council to think of the young kids.

 

Kevin Hogan, city resident, believes we need to look at an in-house attorney now.  Different management options are needed for the cold storage as they break all the rules in managing a profitable facility.   A sense of entitlement for rate increases needs to be stopped before we are unable to compete with other ports.  An enterprise fund oversight committee may be necessary to look at port and harbor rates and the water and sewer fund.

 

Mayor Hornaday closed the public hearing.

 

COMMENTS OF THE AUDIENCE

 

There were no comments from the audience.

 

COMMENTS OF THE CITY ATTORNEY

 

City Attorney Tans was not present.

 

COMMENTS OF THE CITY CLERK

 

Deputy City Clerk Johnson had no comments.

 

COMMENTS OF THE CITY MANAGER

 

City Manager Wrede announced the Coffee Table with KBBI on Wednesday, December 6th at 9:00 a.m. to discuss the budget and an open house on Friday, December 8th between 6:00 p.m. to 7:30 p.m. as an informal informational session on the budget.  The open house will be held in Cowles Council Chambers.

 

COMMENTS OF THE MAYOR

 

Mayor Hornaday had no comments.

 

COMMENTS OF THE CITY COUNCIL

 

Councilmember Novak encouraged people to come to the open house on Friday.

 

Councilmember Shadle said he has heard some good ideas.

 

Councilmember Wythe echoed encouragement for people to attend the open house, adding the importance of community members taking an interest in the City’s finances.  Councilmembers are elected by the community with their job of running the community’s business.  It is important for community members to become involved to have a better understanding of the financial matters.

 

Councilmember Heimbuch stated it was good news in revenue projections.  He asked for a synopsis of the Port and Harbor’s take on tariff increases.

 

ADJOURNMENT

 

There being no further business to come before the Council, Mayor Hornaday adjourned the meeting at 7:35 p.m.  The next Regular Meeting is scheduled for Monday, December 11, 2006 at 7 p.m. and the next Committee of the Whole is scheduled for Monday, December 11, 2006 at 4 p.m.  A Worksession is scheduled for Monday, December 11, 2006 at 5:30 p.m.  All meetings are scheduled to be held in the Homer City Hall Cowles Council Chambers located at 491 E. Pioneer Avenue, Homer, Alaska.

 

 

 

_________________________________

JO JOHNSON, DEPUTY CITY CLERK

 

Approved: ________________________