HOMER CITY COUNCIL

Session 03-24, a Regular Meeting of the Homer City Council was called to order at 7:01 p.m. by Mayor Jack Cushing at the Homer City Hall Council Chambers located at 491 E Pioneer Avenue, Homer, Alaska, and opened with the Pledge of Allegiance.

The Committee of the Whole meeting was held from 4:035 to 5:30 p.m. regarding the Regular Meeting Agenda, with specific attention to the 2004 Budget.

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

STAFF: CITY MANAGER WREDE

CITY CLERK CALHOUN

FINANCE DIRECTOR BAUGH

PUBLIC WORKS DIRECTOR MEYER

AGENDA APPROVAL

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

The agenda was approved by consensus of the Council with the revised December 1, 2003 Special Meeting minutes page 3; deletion of November 24/Dec1, 2003 Regular Meeting Minutes; Substitute Ordinance 03-70(S); City Manager and Fire Chief Response regarding public input on Ordinance 03-65(A); and Ordinance 03-69(A)(S) with Memorandum 03-206 and the additional backup and corrected Resolution on Port Terminal Tariff Revisions.

PUBLIC COMMENTS UPON MATTERS ALREADY ON THE AGENDA

Public comments an anything on the agenda except public hearing items, Ordinances 03-64--03-69(A)(S) and associated Resolutions.

Ray Kranich voiced opposition to even the introduction of Ordinance 03-70(S) and noted the following history:

January 14, 2003, Ordinance 02-53(S)(A) was adopted. Which, covered all zones in the city and set seven criteria to be observed by anyone wanting to basically get a conditional use permit on anything over 30,000 square feet. That was to be in effect for 6 months until July 14, 2003.

June 10, 2003 Ordinance 03-33(S)(A) was adopted which extended the time frame for the previous Ordinance for another six months to January 14th of 2004. That's one six month extension.

On July 28, 2003 Ordinance 03-25(S)(A) was adopted, which lowered the size cap in the CBD, the Marine Commercial and Marine Industrial to 20,000 and left GC1 and GC2 at 40,000. During that period of time there could be no conditional use permits issued, which would allow anything larger than those size limits. This was a hard firm cap. This was set to expire January 28, 2004.

He stated that the essence is that there have been, basically, two different extensions of the size limit. He pointed out that in all of these Ordinances there are references to the Planning Commission reviewing the Comprehensive Plan for compatibility with larger development and for the Commission to be writing criteria for "large retail or whole sale" development. He noted that during the first three months, of this time frame, from January 14, 2003 there were only two times, February 19 and March 5, when this issue was on the Planning Commission Agenda as an informational item only and that it was not discussed. He stated that the Planning Commission dealt with the Sign Ordinance during those three months, which was never a priority of the Council, at least not officially, therefore, choosing to stick this high priority issue aside for three months. He commented that since then it has been on most of the Planning Commission's Meeting Agendas. He related a story:

A student goes to school the first part of the school year, the start of the semester, the teacher assigns the entire class a project a report that they have to do by the end of the semester. Then the teacher doesn't check on them, doesn't require any completion along the line or anything. End of the semester teacher says okay hand in your reports. Students all shrug their shoulders and say, "Oh, we forgot." "Oh, I procrastinated." "I this." "I that." Oh okay, so, the teacher says, "I'll extend it to the end of the term." Doesn't' check on them, doesn't anything. End of the term comes along says okay hand in your reports. Oh, gee, nobody has their reports done. So, what's the teacher suppose to do? Flunk them? Review if someone has just a little bit done, review that? Or are they suppose to say, "Oh well, you can bring it back next year, after vacation. When you go on to the next class, if you go."

Mr. Kranich voiced his opinion that this is the situation with the large retail and wholesale store issues and that the teacher is the Council, who issued the criteria that's suppose to be done, but nothing's been done other than some draft things written. He inquired if the Council has reviewed the drafts, stated that he sees a bunch of blank looks, therefore, does not think anybody's really reviewed the drafts that much. He suggested that the Council needs to adopt or review what's been presented, adopt what fits, amend what doesn't, and go from there. He voiced his opposition to the Council granting another 6 months.

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 Ladd requested that items B. and C. be pulled and placed on the regular part of the agenda.

A. Homer City Council unapproved meeting minutes of November 24, Regular Meeting and December 1, 2003 Special Meeting. Recommend approval.

November 24/December 1, Regular Meeting Minutes removed under Agenda Approval.

B. Substitute submitted under Agenda Approval. Ordinance 03-70(S), Of the City Council Extending Sections 1 through 5 of Ordinance 03-25(S)(A) and Sections 1 through 3 of Ordinance 03-33(S)(A) to April 30, 2004, Retail and Wholesale Development Impact Statement and Standards. Novak. City Manager. Recommend introduction, conduction public hearing and second reading on December 15, 2004.

Placed under Ordinances as Item B.

C. Resolution 03-148, Of the City Council of Homer, Alaska Establishing the 2004 Regular Meeting Schedule for the City Council, Library Advisory Board, Parks and Recreation Advisory Commission, Advisory Planning Commission and the Port/Harbor Advisor Commission. City Clerk. Recommend adoption.

Placed under Resolutions as Item B.

D. Memorandum 03-205, from City Clerk, Re: Liquor License Renewal for Uncle Thirsty's Liquor Store. Recommend approval and non objection.

NOVAK/BECK - MOVED FOR THE ADOPTION AND OR APPROVAL OF THE RECOMMENDATIONS OF THE CONSENT AGENDA.

VOTE: (Items A, as amended and D.) NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

VISITORS

None scheduled.

ANNOUNCEMENTS/PRESENTATIONS/BOROUGH REPORT/COMMISSION REPORTS

A. Memorandum 03-204, Stark, RDC Conference Report, November 21 and 21, 2003.

There was no discussion.

PUBLIC HEARING(S)

A. Ordinance 03-64, Of the City Council of Homer, Alaska Accepting and Appropriating a State Homeland Security Grant in the Amount of $562,923.00, for First Responder Preparedness and Authorizing the Mayor and Chief of Police to Execute the Appropriate Documents. Mayor. HPD. Finance. (First Reading November 24, 2003, Public Hearing and Second Reading December 8, 2003.)

There was no public testimony:

FENSKE/NOVAK - MOVED FOR THE ADOPTION OF ORDINANCE 03-64 BY READING OF TITLE FOR SECOND AND FINAL READING.

Discussion was about the administration of the grant, associated costs and exactly how or for what the grant is to be used. The grant is for upgrading the Public Safety Radio system, there will be some general service training for dispatch personnel, and equipment for the Police and Fire Departments. Typical administrative fee is ten percent. The equipment will be sole sourced and installed as a part of this grant. This equipment is a joint purchase of almost $2 million that was granted to the Borough for the Cities and the General Hospital. The Division of Homeland Security will monitor the completion of the project through quarterly reports.

VOTE: NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

B. Ordinance 03-65(A), Of the City Council Amending Homer City Code Section 5.20.030, Trash Burning--Approved Container to Prohibit Open Burning of Household Waste and Other Items not Permitted. Mayor/City Council. HVFD. (First Reading November 24, 2003, Public Hearing and Second Reading December 8, 2003.)

Written information from the City Manager and Fire Chief in response to public input.

Ralph Crane testified that he was pleased to see some of the things on the agenda and that certainly the burn barrel ban is one of those things that he feels is a step, for Homer, in the right direction. He stated that he supports the concept and is a little concerned about the wording. He voiced his opinion that, after conversations with the Fire Chief and reading the quotes of the Fire Chief in the newspaper, this Ordinance is not going to achieve the intent to allow burning in a burn barrel of paper, wood, limbs, leaves, things like that and not house hold waste. He confirmed that it is certainly safer to burn these things in a burn barrel than out in the open and that this is to allow the burning of wood based products and to get rid of the household waste. He commented about the needing to correct the section reference etcetera.

LADD/FENSKE - MOVED FOR THE ADOPTION OF ORDINANCE 03-65(A) BY READING OF TITLE FOR SECOND AND FINAL READING.

There was discussion regarding the allowable items to burn in the burn barrel. It was noted that most of the paper products are recyclable.

Mayor Cushing called for a recess at 7:24 p.m. to provide Council some time to formulate an amendment, reconvening the meeting at 7:27 p.m.

STARK/LADD - MOVED THAT WE AMEND SECTION 5.20.030 THE SECOND SENTENCE TO SAY ALL OPEN BURNING OF HOUSEHOLD WASTE OR OTHER MATERIALS IS PROHIBITED EXCEPT BRUSH, GRASS, WOOD AND WOOD PRODUCTS.

There was some discussion about what wood products and concern was expressed about what wood products are good to burn or not good to burn.

Chief Painter clarified that there's other DEC regulations that prohibit burning of wood that is covered with creosote and other items such as that. He suggested that, in this case, it is much easier to state what will be allowed to be burned in burn barrels. He noted that this is not a big problem in Homer and commented about the burn permit process.

City Manager Wrede suggested that the amendment read: prohibited except brush, grass, wood, and paper products that are uncontaminated under applicable DEC regulations.

The Council concurred with the additional verbiage and treated this as a friendly amendment.

Motion now Reads: AMEND SECTION 5.20.030 THE SECOND SENTENCE TO SAY ALL OPEN BURNING OF HOUSEHOLD WASTE OR OTHER MATERIALS IS PROHIBITED EXCEPT BRUSH, GRASS, WOOD, AND PAPER PRODUCTS THAT ARE UNCONTAMINATED UNDER APPLICABLE DEC REGULATIONS.

VOTE: NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

5.20.030 Trash burning--Approved container. No person shall burn trash without a permit, except in a screen-covered container, or other trash burner approved by the Fire Chief. All open burning of household waste or other materials is prohibited, except brush, grass, wood and paper products that are uncontaminated under applicable DEC regulations. those materials permitted under section 5.20.030 (brush, grass, wood). (Ord. 98-5 §2, 1998; prior code §8-100.3.)

STARK/YOURKOWSKI - MOVED TO AMEND TO PUT BACK IN THE WHEREAS WE TOOK OUT AND TO LEAVE OUT THE WORD 'APPARENTLY'.

Fire Chief Painter advised that the Open Burning is addressed in the Alaska Administrative Code.

After a brief discussion, the maker and seconder of this amendment asked to withdraw the motion. There was consensus of the Council that the motion be withdrawn..

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

Motion carried.

C. Ordinance 03-66, Of the City Council Amending Portions of Homer City Code Title 4, Elections; Subsections 4.20.020(e) and (i), Questioned Ballot Procedure; Section 4.25.040, Tests and Security; Section 4.25.060 Voting Ballots; Section 4.25.090, Manual Counting; Section 4.30.030, Application for Ballot; Section 4.30.050, Materials for Absentee Voting; Section 4.30.060, Issuance of Ballot by Mail or in Person; Section 4.30.070, Casting Absentee Ballot; Subsections 4.35.010(e) and (f); and Repealing Section 4.25.050, Demonstration. City Clerk. (First Reading November 24, 2003, Public Hearing and Second Reading December 8, 2003.)

There was no public testimony:

FENSKE/NOVAK - MOVED FOR THE ADOPTION OF ORDINANCE 03-66 BY READING OF TITLE FOR SECOND READING.

Mayor Cushing advised the public that this ordinance updates the City Code regarding election practices.

VOTE: YES: NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

D. Ordinance 03-67, Of the City Council Amending the Official Road Maintenance Map of the City of Homer by Adding Greatland Street, 500 Lineal Feet, as an Urban Road. Public Works. City Clerk. (First Reading November 24, 2003, Public Hearing and Second Reading December 8, 2003.)

There was no public testimony:

FENSKE/BECK - MOVED FOR THE ADOPTION OF ORDINANCE 03-67 BY READING OF TITLE FOR SECOND READING.

There was no discussion.

VOTE: YES: NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

E. Ordinance 03-68, Of the City Council of Homer, Alaska, Accepting and Appropriating a State Department of Community and Economic Development FY04 Mini Grant, A Cost Reimbursable Grant in an amount not to Exceed $30,000.00, for a Comprehensive Trails Plan and Authorizing the Mayor to Execute the Appropriate Documents. City Manager. (First Reading November 24, 2003, Public Hearing and Second Reading December 8, 2003.)

There was no public testimony:

BECK/NOVAK - MOVED FOR THE ADOPTION OF ORDINANCE 03-68 BY READING OF TITLE FOR SECOND AND FINAL READING.

There was no discussion.

VOTE: YES: NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

F. Substitute submitted under Agenda Approval. Ordinance 03-69(A)(S), Of the City Council of Homer, Appropriating Funds for the Calendar Year 2004 for the General Fund, the Water-Sewer Fund, the Port/Harbor Fund, Debt Funds, Capital Reserve Funds (Conditional Expenditures). City Manager. Finance Director/Treasurer. (First Reading November 24, 2003, Public Hearing December 8, 2003, Second Reading December 15, 2003.)

Memorandum 03-206, from Finance Director with attachments submitted under Agenda Approval.

F. 1. Resolution 03-, Of the City Council of Homer, Alaska Revising Certain Portions of the Port and Harbor of Homer Terminal Tariff No. 600. Follows same schedule as budget.

Substitute submitted under Agenda Approval.

F. 2. Resolution 03-, Of the City Council of the City of Homer, Alaska Amending the City of Homer Fee Schedule Regarding Water Rates. Follows same schedule as budget.

F. 3. Resolution 03-, Of the City Council of the City of Homer, Alaska Amending the City of Homer Fee Schedule Regarding Sewer Rates. Follows same schedule as budget.

F. 4. Resolution 03-, Of the City Council of Homer, Alaska Extending the City Attorney Contract with Perkins Coie for the Period of January 1, 2004 through December 31, 2004 in the Amount of $7,650.00 per Month for Forty Five Hours and Authorizing the Mayor to Execute the Contract. Follows same schedule as budget.

F.5. Resolution 03-, Of the City Council Amending The City Manager's Contract. Follows same schedule as budget.

Marla McPherson, President of the Board of Directors of the Pratt Museum, thanked the Mayor and Council for their service, for the opportunity to speak and for restoring $80,000.00 in the budget for the Museum. She noted that this honors the long standing relationship with and commitment to the Pratt Museum, which dates all the way back to the Museum's inception in 1967. She highlighted some of the history of the City's unique relationship with the Pratt Museum. She pointed out that the Museum started out as a municipal operation and has evolved to a non profit organization, which, in her opinion, allows for a lot of creativity, a lot of leveraging of additional funds and really makes for a great investment from the City. She emphasized that the fact remains that the Pratt Museum remains dependant on City funding, that the City funding is crucial in the face of fluctuating revenues from declining admissions and the fluctuating private grants depending on the economy. She referred to the Museum Director's presentation at the last Council meeting wherein it was reported that more that 20% of the Museum's operating budget comes from City funding. Ms. McPherson testified that the City commitment to the Museum has been really valuable to continue with obligations to serve as a repository for the community, to legally maintain and preserve the collections for the community, to remain accredited, to keep the Museum doors open to schools, residents, visitors, and to maintain core educational and community programs. She reported that for every City dollar they are able to leverage ten more dollars in project and operating support back into this Community, the beauty of it being a separate non profit. She emphasized that the investment in the Museum today is an investment in the community's heritage, and is connecting the people of today, the stories, the objects of today with those who are the future of the community. In response to Council inquiry:

It would be difficult to tell if the Museum membership are City or non City residents, however, she could get that information on the Board members.

The peak funding from the City was $126,000.000, as she recalls late '90s, and that at that time admissions was doing really well. The whole economy was doing well.

The Museum would certainly like $100,00.00, which would make them breathe easier, can make the $80,000.00 work and will do their best to make it work.

To make their budget more efficient they have done the following:

Cut all staff salaries by 10%, some of those had been restored back to pre-2001 levels, some remain at less then it was in 1999.

Cut positions. Last year combined the Director of Education and Visitors Services position.

Cut a few part time positions.

Board has stepped forward with fund raisers, ways to diversify revenue sources, to find funding from elsewhere.

Slimmed down expenses, became real conservative, and are operating on a pretty tight budget.

Ray Kranich testified that it was kind of hard to track the amendments in the way that these were listed and done in Memorandum 03-206 from the Finance Director. He voiced understanding with the concerns of the Museum to maintain the funding and how this amount has been cut over the years, however, the revenues to the City are reduced so there has to be cuts. He objected to funding non profits, $177,000.00 and that he fully supports putting money back into the depreciation and fleet reserves. He commented on the amendment to add $70,000.00 to increase salaries for Planning and inquired about the $50,000, $20,0000 and $6,000 for supplies. He suggested that if the Council puts this money in Planning it be placed in Professional Services and contract for someone to assist in Planning, which would be a set amount, no wage per hour with all the loaded cost added and when the project is done or dollars gone the contractor goes away. He asked where the $177,000.00 will come from and advised that he looked at the projected revenue changes. He stated that fees, such as the zoning fees, can only be increased so much before people see through the smoke and consider this strictly an increase in taxes. He suggested that when someone has a small shed to build or small addition to their house they will not come in and get the permit and the City will, therefore, have no idea on what is going on in the community. He testified that there should not be an effort to spend down the reserve to even $2 million, and asked would it would hurt if there were an extra hundred or two hundred thousand in the reserves. He noted that if all of the amendments are adopted it equates to $427,000.00, which makes him kind of uneasy, although someone found $250,000.00 in change. He voiced understanding and appreciation of the expertise of the Finance Director, but recommended being "uneasy" in just jumping in and spending this $250,000.00. He shared his understanding that it is kind of a convoluted explanation as to where that money came from and no real explicit. He objected to the funding of the non profits until the revenues are identified.

Katie Gavenus, Junior at Homer High School and resident, thanked the Council for having her and that she did want to speak to them about Community Schools and amendment 1. She reiterated that positive effects that Community Schools does have on the community at a time of negative behavior of youth and teens in the City. She advised the Council that Community Schools provides an opportunity for kids as well as adults to participate in educational and recreational activities with positive outcome. She shared her experience, that she has been participating in Homer Community Schools indoor soccer league and pick up soccer for about ten years, that she has pretty much grown up on it and is kind of what keeps her going through the winter. She reported that there are a lot of other people in town who participate in Community Schools' activities in various forms and ways. She told the Council that, unfortunately, a lot of people are at the High School tonight at the Drug and Alcohol Symposium, which might be keeping some people from testifying.

ORDINANCE(S)

A. Ordinance 03-52, Of the City Council of Homer, Alaska, Appropriating Monies from the Alaska Department of Community and Economic Development, Fisheries Revitalization Aid, in the Amount of $80,914.12, for a Port/Harbor Restroom and Authorizing the City Manager to Execute the Appropriate Documents. Finance. P/H. City Manager. Fiscal Note: Expenditure Acct. Acct. 415-380 Port/Harbor Restrooms (First Reading 09/22/03, Remanded to the Port/Harbor Commission,Main Motion is on the floor for Introduction/First Reading 10/13/03, Public Hearing and Second Reading on October 27, 2003.) Postponed on 10/13/03 to 12/08/03.

Main motion on the floor: FENSKE/BECK - MOVED FOR THE ADOPTION OF ORDINANCE 03-52 BY READING OF TITLE.

There was quite a bit of discussion. It was noted that the Port/Harbor Commission continues to recommend that this money be used to provide another public restroom.

Finance Director Baugh advised that this money was placed in the depreciation reserve so that $80,000.00 did not come out of the operating budget.

Discussion included:

Leaving this money in the depreciation reserve.

Honoring the Port/Harbor Commission's recommendation, which they stated twice.

If the rate model funds depreciation at 50% and funds Port/Harbor operations fully, why is the $80,000.00 needed for the depreciation fund?

Finance Director Baugh confirmed that there was a loss of revenue and that the rate model does not fund depreciation at 50%. He clarified that 50% is placed into the rate model, which spreads this 50% out across the rates. He reported that, "we felt we could not afford to put 50% deprecation in there, because of the way the revenues are coming in so we cut that number". He pointed out that he can put the 50% depreciation in; however, it will cause the rates to go even higher.

Council asked if there is an adjustment that can be made to the rate model to compensate for losses like this in the future.

Finance Director Baugh responded by saying that the rate model created for Port and Harbor is not sophisticated to the point that the rate model is for the water and sewer funds. Therefore, the rate model for the Port and Harbor is done through the CPIs (consumer price index).

Discussion ensued.

Mayor Cushing called for a recess at 8:19 p.m. reconvening the meeting at 8:36 p.m.

Council discussed depreciation amounts for the last two years.

Finance Director Baugh, in response to Council inquiry, advised that nothing gets spent out of the reserve account unless the Council approves it first, therefore leaving it in the reserve account is a protection on this money.

VOTE: YES: NOVAK, BECK, YOURKOWSKI, STARK.

NO: FENSKE, LADD.

Motion carried.

Mayor Cushing, with concurrence of the Council noted that the Public Hearing date will be January 12, 2004 and Second Reading scheduled for January 26, 2004.

B. Consent Agenda Item B. Substitute submitted under Agenda Approval. Ordinance 03-70(S), Of the City Council Extending Sections 1 through 5 of Ordinance 03-25(S)(A) and Sections 1 through 3 of Ordinance 03-33(S)(A) to April 30, 2004, Retail and Wholesale Development Impact Statement and Standards. Novak. City Manager. Recommend introduction, conduction public hearing and second reading on December 15, 2004.

Placed under Ordinances as Item B.

NOVAK/YOURKOWSKI - MOVED TO INTRODUCE.

There was some discussion about conducting the public hearing on January 12 and Second reading on January 26, 2004.

Council discussed the merits of this extension and whether or not the Council should be setting a schedule and if the Planning Commission should comply with the current deadline dates of January 14 and 28, 2004.

Planning Commission Chair Smith was asked for his input and he recommended a time extension, with some concerns about meeting the new proposed deadline.

Mayor Cushing recognized an informal call for the Question by Councilmembers Fenske and Stark.

There were no objections voiced.

VOTE: YES: STARK, NOVAK, BECK, FENSKE, YOURKOWSKI.

NO: LADD.

Motion carried.

CITY MANAGER'S REPORT

A. City Manager's Report (Updates and follow up and the December Employee Anniversaries: Mark Robl HPD- 19 years, Will Hutt HPD - 9 years, Jim Nelson PWD - 5 years, John Berelc PH - 4 years, Bryan Hawkins PH - 4 years and Paul Meyer HPD - 2 years.)

B. Bid Report, Game Report.

There was lengthy discussion which included the status of the Animal Shelter, Council input regarding the Airport Master Plan. The City Manager will compile input from the Mayor and Council regarding the Airport Master Plan and submit a Resolution for Council action during the Special Meeting of December 15, 2003. The Borough Comprehensive Plan was discussed as was input from the Council.

Mayor Cushing advised of the RFPs and Invitations to Bid:

(Not read by the Mayor: Request for Proposals for the Wetlands delineation for Bridge Creek Watershed due December 11th at 4:30 p.m. Clerk's Office.)

Request for Proposals For Professional Planning Services Homer Non Motorized Transportation and Trail Plan due December 30th at 4 p.m. at the Clerk's Office.

Request for Proposals for Professional Planning Services National Scenic Byway Nomination and Corridor Management Plan for Sterling Highway due December 30th at 4 p.m. at the Clerk's Office.

Invitation to Bid for City Hall Parks and Cemeteries Maintenance, for next three years, sealed bids due December 11th at 2 p.m. Clerk's Office.

Invitation to ReBid Port Security Fence and Gate Installation sealed bids due December 30th at 4:15 p.m. Clerk's Office.

COMMITTEE REPORT

A. Road Standards Committee,

B. Town Center Development Committee

There was no discussion.

Mayor Cushing called for a recess at 9:47 p.m., reconvening the meeting at 9:55 p.m.

PENDING BUSINESS

A. Memorandum 03-198, from Finance Director, Re: University of Alaska Kachemak Bay Campus Lease. Fiscal Note: The lease term is from October 1, 2003 through September 30, 2006, three additional one-year renewal periods. The lease rate is $52,800.00 per year, plus tax. Under agenda approval November 24th requested to be forwarded to the December 8th agenda.

Recommendation: Homer City Council approval of the attached lease agreement between the City of Homer and the University of Alaska.

NOVAK/LADD - MOVED TO APPROVE THE RECOMMENDATION OF MEMORANDUM 03-198.

NOVAK/FENSKE - MOVED TO AMEND THE TITLE, TERMS AND CONDITIONS, BY ADDING A NEW SUBSECTION NUMBER 2.B. AND RENUMBERING THE FOLLOWING SECTIONS. THE NEW SUB SECTION 2.B. SHALL BE ENTITLED "MARKET VALUE" AND READ " THE LESSOR AND LESSEE ACKNOWLEDGE THAT THE TRUE MARKET VALUE OF THIS SPACE IS $126,495.00 PER YEAR BASED ON $1.25 PER SQUARE FOOT PER MONTH. THE PARTIES ACKNOWLEDGE FURTHER THAT THE CITY IS MAKING A DONATION IN THE AMOUNT OF $73,695.00, WHICH REFLECTS THE DIFFERENCE BETWEEN THE FAIR MARKET VALUE AND PROPOSED LEASE RATE OF $52,800.00 PER YEAR AT THE RATE OF $0.5218 PER SQUARE FOOT PER MONTH, IN ORDER TO SUPPORT THE OPERATIONS OF AND THE LONG TERM VITALITY OF THE KENAI PENINSULA COLLEGE KACHEMAK BAY CAMPUS.

There was a brief comment that this amendment helps to define the extent the City is willing to go to maintain the University's presence in Homer.

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

Motion carried.

YOURKOWSKI/FENSKE - PROPOSED AN AMENDMENT FOR DISCUSSION, ON ITEM 2A, AMEND THE FIRST SENTENCE TO READ THE ANNUAL LEASE RENTAL IS $52,800.00 PER YEAR FOR THE TERM, RENEWAL TERMS WILL BE NEGOTIATED, PAYABLE IN ADVANCE ON THE FIRST DAY OF EACH MONTH IN EQUAL MONTHLY INSTALLMENTS OF $4,400.00 PLUS APPLICABLE SALES TAX.

There was some discussion. The concern was that the University is not locked in and may get out of this lease if they need to, for instance, in the case of purchasing City Hall.

City Manager Wrede affirmed that this lease provides for termination for convenience with 120 days notice.

Amendment 2. was withdrawn by consensus of the Council.

Finance Director Baugh responded to Council inquiry about improvement or expenditures by reading Item 3. e.: Destruction: Lessee covenants that if the premises are destroyed, or if the premises are determined to be unfit for occupancy, Lessee shall within a reasonable time remove their possessions and vacate the premises and City shall have no obligation to provide alternative premises. He emphasized that if the damage is the Lessee's fault they are responsible for the repairs.

Discussion ensued.

Council noted that education is a clean industry for Homer.

FENSKE/STARK - CALLED FOR THE QUESTION.

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

Motion carried.

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

Motion carried.

NEW BUSINESS

None scheduled.

RESOLUTIONS

A. Resolution 03-149, Of the City Council to Complete a Thorough Comprehensive Review of the Property Management Policy and Procedures Manual with Revisions. Ladd.

LADD/YOURKOWSKI - MOVED FOR THE ADOPTION OF RESOLUTION 03-149 BY READING OF TITLE.

LADD/STARK - MOVED TO AMEND ON PAGE 143, TO FILL IN THE DATES FEBRUARY 28, 2004.

According to Mr. Ladd, the City Manager has stated that this provides him sufficient time to accomplish the task.

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

Motion carried.

Clause now reads:

BE IT FURTHER RESOLVED by the Homer City Council that the thorough, comprehensive review of the Lease Policy Manual with revisions be submitted by the City Manager to the Homer City Council for action no later than, February 28, 2004, and

YOURKOWSKI/LADD MOVED TO AMEND THE FIFTH PARAGRAPH ON PAGE 143 , FOR THE PURPOSES OF CLARIFICATION TO READ: NOW, THEREFORE, BE IT RESOLVED BY THE HOMER CITY COUNCIL THAT FOR THE PURPOSES OF COMPLETING A COMPREHENSIVE REVIEW OF THE LEASE POLICY MANUAL THE LEASE NEGOTIATION COMMITTEE, SHALL TO INCLUDE MR. RAY KRANICH AND ANY OTHER INDIVIDUAL AS DETERMINED APPROPRIATE BY THE HOMER CITY MANAGER. , COMPLETE A THOROUGH, COMPREHENSIVE REVIEW OF THE LEASE POLICY MANUAL WITH REVISIONS, AND

There was discussion that the Council appreciates Mr. Kranich's input, but not necessarily in perpetuity.

Former Councilmember Kranich affirmed his desire to serve in this capacity.

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

Motion carried.

Mayor Cushing noted that it will be up to the Manager to ascertain what is an exceptional lease and bring that forward to the Council.

Council emphasized that they want a pretty comprehensive plan of the use for the property on the Spit.

STARK/NOVAK - CALLED FOR THE QUESTION.

VOTE: (question) YES: NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

VOTE:(main motion as amended) YES: BECK, FENSKE, LADD, YOURKOWSKI, STARK, NOVAK.

Motion carried.

B. Consent Agenda Item C. Resolution 03-148, Of the City Council of Homer, Alaska Establishing the 2004 Regular Meeting Schedule for the City Council, Library Advisory Board, Parks and Recreation Advisory Commission, Advisory Planning Commission and the Port/Harbor Advisor Commission. City Clerk. Recommend adoption.

NOVAK/BECK - MOVED FOR THE ADOPTION OF RESOLUTION 03-148.

There was discussion regarding July, May and November meetings. Council asked that the budget meetings start earlier next year.

Intentions of the Council stated:

There will be no First Regular Meeting in July. The May 24th meeting will be held on Tuesday, May 25th.

NOVAK/LADD - MOVED TO AMEND TO MEET ON THE THIRD AND FOURTH MONDAYS IN NOVEMBER. (THE FIRST MEETING IN NOVEMBER WILL BE HELD ON THE THIRD MONDAY, NOVEMBER 15TH AND THE SECOND MEETING ON THE REGULAR DAY, THE FOURTH MONDAY, NOVEMBER 22ND.)

If additional meetings are required these may be scheduled.

There was discussion.

Mayor Cushing recognized the informal call for the question and there was no objection.

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

Motion carried.

There were no further comments.

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

Motion carried.

COMMENTS OF THE AUDIENCE

Audience comments on any matter.

Dr. Bill Marley commented on Ordinance 03-63⁽¹⁾ that failed on December 1, 2003, that he can accept the fact that things fail from time to time and that he taught his children how to win, how to accept that fact that sometimes you lose and that no one wins all the time. He stated that he has respected the City Council in the past and that it has functioned better than the state legislature. He told the Council that he lost a very great measure of respect for them when they were unwilling to delay action on an Ordinance for one week to allow an absent member, who had been a composer of the Ordinance, to be present and express themself. He stated for the record that he has not talked to the absent person about this since that time. He stated that when someone looks him in the eye and tells him how proud they are to have been one of the two who penned the clean indoor air for City buildings and then trivializes and treats an Ordinance for clean indoor air for public businesses as though it were rubbish that he has to see a huge gap and disconnect by that person from August to December of this year. He asked if second hand smoke is different in City buildings then it is in public businesses. He voiced understanding for political considerations for the 1,465 signatures on a petition. He acknowledge his respect for the ability to think and be responsible to a good number of people who signed that petition, but if that petition has been stated in another way such as would you like to be a participant in one of the every nine tobacco tests and 300,000 children remain ill each year by permitting second hand smoke to pollute the air, that there would have been a very, very different response to that petition. He voiced his opinion that the right of business owners fades quickly if one considers the right of a person to be free of disease or the ultimate, death. He clarified that amendment number twelve of the US Constitution has nothing to do with freedom, it has to do with how the government should function in the event of a tie in a Presidential Election. He relayed that in the 1950s and 60s the very argument of owners rights over public businesses was the very one that allowed African Americans not to be able to eat in the same restaurants, drink from the same water fountains and kept segregation enforced. He emphasized that if the City Council had, at the very least, allowed the Ordinance for discussion the public would have had a much greater opportunity to be educated and had the effective leadership. He suggested that, maybe, people who smoke at home would at least have elected to create a smoke free home. He asked if the Council could have a better political way to effect this health measure. He told the Council that when they hear the sirens' wail at night, hear the chopper at the hospital and read, in the paper, about those who passed away; that he will share the uneasy feeling with the Council, because they failed to provide leadership and he failed to convince them. He wished the Council good luck in their future deliberations.

Nancy Hillstrand stated for the record that she came from across the Bay today and went into the public bathroom and found that there were forty two lights burning there. She noted, in the budget, line item 5217, that there is $150,000.00 for electricity and asked that the Council look at the electricity budget and see what can be done about it. She commented that the other thing she notice when she came into the harbor, at night, that it was as light as day, with the big bright lights burning. She suggested that less be spent on lighting/electricity throughout the whole City. She pointed out that in the Council Chambers there are forty eight lights burning, down stairs at City Hall there are one hundred and thirty lights burning, therefore, suggested cutting the lights burning, in the City, by half. Ms. Hillstrand commented that all these small things do add up to a large thing. She pointed out that line item 5218, department 601, shows $45,000.00, which was lowered by $12,000.00, is the water for the harbor. She advised that she walks around out at the harbor and all summer long there is water shooting out from every direction from all of the little spigots, leaks every where, again a small thing. She relayed that when she fixes one small water leak at her shop it is a tremendous savings, and when she took out two light bulbs out of each light it was amazing how much it slowed her electricity meter. She asked what the point was with all the bright lights at the harbor, voicing her opinion that if the lights were cut in half it would still be plenty bright at the harbor. She recommended joint purchasing in the City to get better pricing. She encouraged the Council to look at these things in their budget deliberations, told the Council that they would be surprised at how much they could save and thanked them.

Ginny Espenshade; lives, works and plays in the City of Homer; echoed her daughter's support of the Council's support of Community Schools. She noted that she and her children are consumers and volunteers for the Community Schools Program in Homer and have been since her children were preschool soccer players. She reported that on any given night at that High School there are gyms full of young people, young adults, cross generation, cross gender, and international; that the soccer community is totally international; that there is mentoring, supervision and good role models; and fitness. She emphasized that this is a bargain. She voiced appreciation of the Council's support, that this has been a huge part of the quality of life in this community and that it is a no brainer to support Community Schools, even if the Legislature does not see it as such.

Rika Mouw, welcomed back Councilmember Beck, commented about the Airport Expansion, that she attended the meeting and wanted to chime in that she believes there was something on both the permanent and short term that were not well thought out. She noted that many times with all the space, efficiency and detail is forgotten and space is wasted. She voiced concern about the discussions about filling in quite a bit of wetland for things such as camping for transient planes, which takes business away from existing camping. She voiced objection and stated that she does not see where filling in wetlands for camping is justifiable, although not a focus point for "them". She commented about extending the runway that will also involve more fill and cutting quite a bit of Black Spruce Trees. She addressed the discussion about safety and that with the hydrology there and filling in more and more wetlands that there are residential dangers, in messing with the hydrology. She voiced her opinion that Kachemak Drive is causing hydrological consequences and this keeps being ignored that the wetlands are needed for flood control and bluff erosion. She urged the City to weigh in, heavily, on this matter with these considerations. She urged support of the non profits through City funding, which is a quality of life issue. She echoed Nancy Hillstrand comments, areas where the City can save money. She emphasized that the social and cultural organizations are the blood and connective tissue of Homer, if these things are cut back it is just not worth hanging around, adding that she will not be as generous about her energy. She shared her thinking that there is a domino effect when this falls apart, that this is a time when those things are most important, it's about people, which is why we are all doing all of this. She commented specifically about the Pratt Museum, Bunnell Gallery and Homer Council on the Arts, all organizations that bring in money from the outside, money engines in themselves. She noted that the Pratt Museum has cut down on their budget so much that now the employees need to write grants for their own salaries, which is great, in a way, and noted that they are doing amazing things. She voiced concern that the morale of further cuts, interjecting that she does not want to live in a town where people are demoralized and lacking inspiration to keep going. She pointed out that the employees at the Pratt Museum have taken cuts, taken more time off and doing more and more and that without some of the assets, this City is not an attractive one to live in. She urged consideration about Human Resource Development and thanked the Council.

Asia Freeman; live, work and play in Homer and the Artistic/Executive Director of the Bunnell Street Gallery; stated that she is happy to come back year after year and remind the Council how important the process is that they engage in, as volunteers working on the development of the City's budget and that she is inspired by all of them. She voiced appreciation for the fact that the Council has considered keeping non profits in the City budget and her hope that they will maintain that through this budget process. She stated that she definitely appreciates the question of where that money will come from and that she can only say that non profits, in this town, do count every light bulb and are trying to do everything they can to stand behind the value, economy and the duties that the non profits bring to Homer. She relayed that in Alaska the non profits have one of the highest density rates in the Nation and that she is sure that Homer leads that. She expressed her opinion that non profits are one of Homer's greatest resources to attracting, both, the tax base and brain power of people who are moving to Homer, especially the retirement sector, a great resource to non profits in volunteerism and knowledge. She stated that non profits re enforce that special character that is loved about Homer and bring everyone together, making Homer much stronger and more attractive. She noted that, as a person who grew up here, she is very excited to see how, overall, the town keeps developing in such positive ways. Ms. Freeman commented that she cannot believe the types of issues that the Council has been faced with in the past couple of years and that it is amazing. She voiced agreement with Nancy Hillstrand's idea for saving money and that in terms of the support the City gives non profits, like through the foundation, it has always been, for example, as far as Bunnell Street Gallery is concerned, their will to request the least amount possible or necessary in order to leverage what they consider to be their major funding strength. She stated that it is entirely symbolic, yet what they have done with that has been really tremendous. She reported on highlights, for her, from the past year working at Bunnell Street Gallery:

In the early part of the year, February, she was invited by the Rasmuson Foundation, to an Art Summit, to look at how they can spend their mega millions around Alaska. That they wanted to ascertain the interest and the will of people around the state. She was the only one who attended from the Kenai Peninsula and was quite thrilled to see such ideas as a regional arts center, residency facility, things she envisions as bringing clean economy and great energy in developing the existing resources in terms of educators, artists and enthusiasts.

It was thrilling for Bunnell Street Gallery to host an exhibition of Alex Combs, who is kind of the Picasso of the Peninsula, an 82 year old fellow who has put in years in the university system, having moved to the cove about 25 years ago, has influenced a great number of artists in the area. It is wonderful to see the community spirt amplified and show cased in this way.

Collection of sales tax, never less than what they ask back in their effort to do their part to try and stand behind their little request.

Fourth Edition of John Villani, who wrote "100 Best Small Art Towns in America", called her to ask how Homer is doing.

Ms. Freeman stated that she looks forward each year to trying to visit another small art town some where else in America and that she is really excited to say that people who will be following that book or just following the quest for the great small town will be more and more satisfied, over the years, as they come to Homer. She advised the Council that the thing she is the most proud of, at Bunnell and in which the City has made a terrific investment and partnership through the Homer Foundation over the years, is the growth of their art education program. She acknowledged the awareness of the beleaguered School District budget on the Kenai and that the Bunnell Gallery has attempted to spark creativity and inspiration among the students and teachers by taking local artists, or inviting local artists, through their registry that they advertise to provide hands on residency in ten different schools in the lower peninsula this year. She reported that for $10,100.00 this year ten schools in the greater area will have a week of hands on art instruction, majority of which is coming through the private sector, matching and doubling any form of government based support. She informed the Council that the City's funding is the pin in a bigger structure and inspires all the others. She thanked the Council for their support over the years, reminded them what their dollars are doing and how valuable it is to the Gallery, and said that she believes that what the Council is building through their investment is helping the City to grow in positive ways and inviting the best kind of people to reside here. She encouraged the Council to keep up the good work.

Bill Smith voiced appreciation of the Council's recognition of the amount of work that the Planning Commission has been doing on various issues. He advised that earlier this year the Commission started out by wanting to create a Committee to involve a number of citizens, however, the Council elected to create their own Committee on which most of the Planning Commission members served from February through April. He pointed out that though the large store issues were not officially on the Planning Commission's agenda they were all still working on the matter. He noted that in April the Commission started on the building size hell fire and as things developed they did not get to building standards until into August, after the new Planner was on board. He addressed the issue of cutting their pay in half, that he wanted to give the Council the opportunity to do that, that they would like access to the Council's refrigerator.

COMMENTS OF THE CITY ATTORNEY

City Attorney Tans was not present.

COMMENTS OF THE CITY CLERK

City Clerk Calhoun had no comment.

COMMENTS OF THE CITY MANAGER

City Manager Wrede had no comment.

COMMENTS OF THE MAYOR

Mayor Cushing advised that next week there are a lot of meetings; that he, the City Manager and Winter Games Hosts Committee want to meet on Thursday as well as EDD to welcome the new Manager to town, all up in Kenai. He voiced a hope that the meetings would be rearranged so that they could go to both meetings on the same day, adding that they will make it work.

COMMENTS OF THE CITY COUNCIL

Councilmember Novak stated that he would be happy to give Bill Smith his key to the refrigerator.

Councilmember Stark extended an invitation to the Christmas Cantata next Sunday at the Lutheran Church at about 9:30 a.m. and at the Methodist Church at 11 a.m.

Mayor Cushing interjected that the Fish and Wildlife Service has their grant opening, Oceans and Islands, next Saturday from noon until five with dedications at noon.

Councilmember Fenske asked if he missed Council approving representation at the Resource Development Council Conference?

Councilmember Stark responded that it was announced at a Council meeting and advised of the procedure when less than $250.00.

Councilmember Fenske asked for a more thorough report.

Mayor Cushing attempted to clarify as to what Councilmember Fenske was asking for, that it was for this information to come before the Council for approval before attending.

Councilmember Yourkowski inquired as to when the City Manager wants their comments on the Airport Master Plan.

City Manager Wrede responded, as soon as possible, to meet the next meeting and to meet the deadline for comments. He suggested that the Council call with their points.

Mayor Cushing suggested that if not finalized these be called draft comments and get them the final comments after the meeting on January 12th.

Councilmember Ladd asked that there be some time, at an upcoming worksession, to jot down some thoughts to submit to the Borough to incorporate in the Borough Comprehensive Plan. He stated that there are some areas when it comes to economics and the environment that the Council would like see placed in that Borough Plan. He emphasized that the input is stronger as a group, adding that he testified the night they were down here and that there were only about four of five people in the room. He suggested that the Council weigh in as a group.

Mayor Cushing interjected that on the back of that is the Borough Coastal Zone Management Plan, which cannot be overlooked.

There was consensus to put the Borough Comprehensive Plan input from Homer on the January 12, 2004 Committee of the Whole agenda.

ADJOURNMENT

There being no further business to come before the Council the meeting was adjourned at 11:09 p.m. The next Regular Meeting is scheduled for Monday, January 12, 2004 at 7 p.m. The next Committee of the Whole meeting is scheduled for Monday, January 12, 2004 at 4 p.m. The meetings are scheduled to be held in the Homer City Hall Council Chambers located at 491 E. Pioneer Avenue, Homer, Alaska. A special meeting is scheduled for Monday, December 15, 2003 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: __________________________

1. Ordinance Amending Homer City Code Chapter 5.05, Smoking Prohibited in City Structures, Vehicles and Watercraft, to Control Environmental Tobacco Smoke in Public Places and Places of Employment. Beck. Yourkowski