Session 08-34 a Regular Meeting of the Homer City Council was called to order on December 8, 2008 at 7:00 p.m. by Mayor James C. Hornaday at the Homer City Hall Cowles Council Chambers located at 491 E. Pioneer Avenue, Homer, Alaska, and opened with the Pledge of Allegiance.

 

PRESENT:             COUNCILMEMBERS:         HOWARD, LEWIS, NOVAK, ROBERTS,                                                                  WYTHE, ZAK (telephonic)

 

                               STAFF:                                 CITY MANAGER WREDE

                                                                            CITY CLERK JOHNSON

                                                                            CITY PLANNER ABBOUD

                                                                            FINANCE DIRECTOR HARVILLE                        

                                                                            PORT & HARBOR DIRECTOR HAWKINS

                                                                            PUBLIC WORKS DIRECTOR MEYER

                                                                            FIRE CHIEF PAINTER

                                                                            POLICE CHIEF ROBL

 

Council met as a Committee of the Whole from 4:00 p.m. to 5:10 p.m. Agenda items included: 2009 Budget and Regular Meeting Agenda items.  

 

Councilmember Zak has requested telephonic participation.

 

Councilmember Zak provided sufficient notification; Mayor Hornaday asked for a motion to allow Councilmember Zak to participate telephonically.

 

ROBERTS/LEWIS – SO MOVED.

 

There was no discussion.

 

VOTE: YES. NON OBJECTION. UNANIMOUS CONSENT.

 

Motion carried.

 

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:

 

PUBLIC HEARINGS/PENDING BUSINESS Ordinance 08-50 - Proposed Budget Amendments 2009 Operating Budget, Reminder of Resolutions 06-100 & 06-101, Sales Tax Revenue for 2007, Boise State University Water/Sewer Study, Written public comments, Initiative Petition, Re: Special Election to Exempt Nonprepared Foods from Sales Tax by Mike Heimbuch.       

 

PUBLIC COMMENTS UPON MATTERS ALREADY ON THE AGENDA

 

Kevin Hogan, city resident, commented on Resolution 08-123. It was not put before the Port and Harbor Advisory Commission and it is appropriate to get their comment. Fee increases on Fish Dock for crane and ice rates are disproportional. Ten years ago it was $45 per hour for crane usage; now it is $88. The commercial industry may have to go the route of the charter fishery to hire people to move the fish up the dock. The City is charging $115 for ice; he can get it for $85. Why should he buy Homer’s ice? Ten years ago when the IFQ (Individual Fishing Quota) fishery got rolling and Homer became a major port, there was a 25% to 35% price differential between the price of fish in Homer and ports westward. Now the price differential is down to 2% to 3%. He urged Council to look at the expenses side; you cannot always look at revenues.

 

RECONSIDERATION

 

 None.

 

CONSENT AGENDA

 

(Items listed below will be enacted by one motion. If separate discussion is desired on an item, that item may be removed from the Consent Agenda and placed on the Regular Meeting Agenda at the request of a Councilmember.)

 

A.        Memorandum 08-158, from Mayor, Re: Reappointment of Carla Stanley as    Homer’s Representative on the Cook Inlet Regional Citizen’s Advisory Council.           

 

Mayor Hornaday called for a motion for the adoption of the recommendations of the consent agenda as read.

 

WYTHE/NOVAK – SO MOVED.

 

There was no discussion.

 

VOTE: YES. NON OBJECTION. UNANIMOUS CONSENT.

 

Motion carried.

 

VISITORS

 

Mayor Hornaday called for a motion to suspend the rules and allow Representative Paul Seaton as a Visitor.

 

ROBERTS/LEWIS – SO MOVED.

 

There was no discussion.

 

VOTE: YES. NON OBJECTION. UNANIMOUS CONSENT.

 

Motion carried.

 

State Representative Paul Seaton addressed Council with the realization of dropping oil prices, capital budget items are hard to come by. The Federal government is coming up with an infrastructure program to be shovel-ready; it will be ready to put people to work right away. The City will get notice to nominate programs to the Governor’s office to submit to Congress. Most capital projects are not in the shovel-ready condition. He encouraged Council to consider a separate category, especially for those types of projects. Although the projects may not be the City’s highest priority, projects that put people to work will be eligible for funding.

 

ANNOUNCEMENTS/PRESENTATIONS/BOROUGH    REPORT/COMMISSION REPORTS

 

Bill Smith, Kenai Peninsula Borough Assemblyman, reported the Borough solid waste department is stepping up efforts of solid waste collection. He suggested a recycling program be added to the City’s plan. The Assembly received a report for the FY 2008 comprehensive annual financial report for the year ending June 30, 2008. The fund balance is $4.6M greater than anticipated. The State paid a lot of PERS, there was higher interest earnings, cruise ship tax money, and sales tax brought in a lot more money than anticipated. It meant an increase of $3.9M in the unreserved fund balance. For FY 2009 the Assembly budgeted a decrease of almost $4M, or a 15% decrease. It is unknown how hard the nonprepared food sales exemption will hit, but it allows some breathing room. The Assembly will be reviewing the fund balance policy. Although Assemblyman Smith has been named to be the Chair of the Senate Finance Committee he won’t be in a position to bring any earmarks to Homer. There will be a small amount of money coming to the City, with restrictions on how the money will be spent. The Borough concurred with board of adjustment action on the Country Club Estates matter. The City’s concerns should be covered with the Borough. For anyone looking for a job, Census 2010 jobs are available.

 

PUBLIC HEARING(S)

 

A.        Ordinance 08-50, An Ordinance of the City Council of Homer, Alaska, Appropriating             Funds   for the Calendar Year 2009 for the General Fund, the Water-Sewer Fund, the             Port/Harbor  Fund, Debt Funds, Capital Reserve Funds (Conditional Expenditures).       City Manager. Introduction October 27, 2008, Public Hearings November 24 and December 8, 2008 and Second Reading December 8, 2008.   

 

Ernie Souja requested $20,000 for the Senior Citizens to help with matching grants. The seniors have a four-plex in the works, a shovel-ready project that may put some people to work. He attended a meeting about Olsen Mountain Road recently and learned DOT sets priorities on roads as to the number of fatalities that have occurred. If we get to that point, he believes Homer is lost.

 

Scott Adams asked Council to address Lake Street first. It is filled with potholes, has been refilled, and people aren’t using the road. Lake Street needs to be addressed before a traffic signal on the Bypass.

 

Gert Seekins, Homer Senior citizens, requested $20,000. The four-plex is shovel-ready; it has the same design as used in Anchor Point.

 

Kevin Hogan, city resident, appreciates the struggle on the budget. He urged Council to drop the COLA. Regular citizens are not getting it; we cannot afford to make sure City employees do. He has learned a first year city worker gets 35 days paid leave per year. City workers are taken care of just fine; they can afford to share the pain with the rest of the employees. As to the water fund, no one is talking about cutting expenses. In business you have to cut expenses; government should not pass rate increases on to consumers. The City needs to do some belt tightening for these tough times. Non profits can be supported by writing your own check.

 

Lucinda Eckert, city resident, spoke on behalf of the Homer Hockey Association (HHA). She urged Council to allocate $15,000 to HHA. All nonprofits complete the services of the city; without them we are not whole. Nonprofits offer services with little cost to the City.

 

Unidentified speaker in support of a $15,000 contribution to the Boys and Girls Club urged Council to support the families and children of Homer. She commended Kelly and the staff at the Boys and Girls Club.

 

B.         Ordinance 08-56, An Ordinance of the City Council of Homer, Alaska, Amending       Homer City Code 21.60 Sign Code to Include the Town Center District and       Correcting Table 1 to Include the Marine Commercial District. City             Manager/Planning. Recommended        Dates:   Introduction November 24, 2008, Public          Hearing and Second Reading December 8, 2008.                                        

 

            Memorandum 08-148, from City Planner as backup.   

 

There was no public comment.

 

Mayor Hornaday called for a motion for the adoption of Ordinance 08-56 by reading of title only for second and final reading.

 

NOVAK/WYTHE – SO MOVED.

 

There was no discussion.

 

VOTE: YES. NON OBJECTION. UNANIMOUS CONSENT.

 

Motion carried.

 

C.        Ordinance 08-57(S), An Ordinance of the City Council of Homer, Alaska Amending the          Official Road             Maintenance Map of the City of Homer by Adding 1,150 Linear Feet of           Road    Improvements to Daybreeze Court and Calamari Court, or .22 Miles of Urban          Road.   City Clerk/Public Works.  Recommended Dates: Introduction November 24,       2008,   Public Hearing and Second Reading December 8, 2008.

 

There was no public comment.

Mayor Hornaday called for a motion for the adoption of Ordinance 08-57(S) by reading of title only for second and final reading.

 

WYTHE/NOVAK– SO MOVED.

 

There was no discussion.

 

VOTE: YES. NON OBJECTION. UNANIMOUS CONSENT.

 

Motion carried.

 

D.        Ordinance 08-58, An Ordinance Amending Homer City Code 4.01.080 to Permit Sales          of Alcoholic Beverages in the City on all State and Local Election Days. City            Manager/City Clerk.  Recommended Dates: Introduction November 24, 2008, Public          Hearing and Second Reading December 8, 2008.

 

There was no public comment.

 

Mayor Hornaday called for a motion for the adoption of Ordinance 08-58 by reading of title only for second and final reading.

 

NOVAK/LEWIS– SO MOVED.

 

There was no discussion.

 

VOTE: YES. NON OBJECTION. UNANIMOUS CONSENT.

 

Motion carried.                        

 

E.         Ordinance 08-59 An Ordinance of the City Council of Homer, Alaska, Continuing the Levy of a Sales Tax Under HCC 9.16.010 on Sales of Nonprepared Foods in the City of   Homer, but Reducing the Rate of the Sales Tax Levied on Nonprepared Foods Under      HCC 9.16.010(a) from 3.0% to 1.5% During the Period from September 1st through May             31st. Novak/Roberts. Recommended    Dates:   Introduction November 24, 2008, Public          Hearing and Second Reading December 8, 2008.    

 

Dean Ravin, Homer resident, said 67% of voters in Homer voted in favor of Proposition 1 to exempt sales tax from nonprepared food. Passage of Ordinance 08-59 would impose a sales tax on food contrary to the vote of the citizens. When a government is no longer responsive to the will of the govern, the true citizen must act to change such government. He asked for change and a no vote on the ordinance.

 

Shelly Erickson, city resident, asked Council to do the will of the people and eliminate sales tax on food. It is perceived the Council is not listening to what the people are voting. When we vote for President, even if we are not happy with the results we will work with the results. People voted to eliminate the sales tax. People are becoming disillusioned by the local government not responding to the wishes of the voters. The citizens are cutting back on household expenditures; the City should cut back on expenditures also.

 

Michael Kennedy, longtime city resident, echoed the prior comments. If you want to keep faith in city government, you have to keep the will of the voters. It disturbs him to have had a vote that clearly made a decision and then a Borough way to get around it. Exempting food from tax will not take away things that are nonessential items.

 

Steve Zimmerman, Homer resident, reiterated what the others said. People voted to exempt the tax. People are not having faith in the system as they vote and government just goes around it. They say it is not worth the trouble as nobody listens. He hopes the City will listen and cut spending to get by with less, like the rest of the people are doing.

 

Scott Adams, Homer resident, commented the voters did vote and regardless of the percentage, they voted to help out those that live here winter round. What sticks in a lot of people’s craw is if citizens think they are not going to pay the tax they have another thing coming. The City is nurturing itself around tourism for five months out of the year. When we want something for us, we pull tooth and nail. Last winter he was at Mariner Park and threw some sand to help a car out. After seeing two sand trucks go back and forth on the Spit he asked the Public Works Department if they could add some sand. They said they don’t take care of sanding during the winter. The City needs to listen to its citizens.  

 

F.         Ordinance 08-60, An Ordinance of the Homer City Council, Amending Homer City     Code    Chapter 21.71 to Include the Community Design Manual as Part of the Review     Criteria for a Conditional Use Permit, and Chapter 21.02 to Include the Homer Non-           Motorized Transportation and Trail Plan, the Homer Town Center Development Plan    and the Homer Transportation Plan as Parts of the Adopted Comprehensive Plan. City        Manager/City Planner.   Recommended Dates: Introduction November 24, 2008, Public            Hearing and Second Reading December 8, 2008. 

 

There was no public comment.

 

Mayor Hornaday called for a motion for the adoption of Ordinance 08-60 by reading of title only for second and final reading.

 

NOVAK/LEWIS– SO MOVED.

 

There was no discussion.

 

VOTE: YES. NON OBJECTION. UNANIMOUS CONSENT.

 

Motion carried.

 

G.        Ordinance 08-61, An Ordinance of the City Council of Homer, Alaska, Amending the FY 2008 Operating Budget in the Amount of $432,178.79 ($212,795.36 General Fund, $141,978.87 Water and Sewer Fund, $77,404.57 Port and Harbor Fund). City Manager/Finance. Recommended Dates: Introduction November 24, 2008, Public Hearing and Second Reading December 8, 2008.                                                         

 

There was no public comment.

 

ORDINANCE(S)

 

A.        Ordinance 08-62, An Ordinance of the City Council of Homer, Alaska, Accepting and            Appropriating an Alaska Department of Transportation (ADOT) Reimbursement of up to             $7,168 for Commercial Vehicle Enforcement Inspections and Authorizing the City          Manager to Execute the Appropriate Documents. City Manager/Police Chief. Recommended Dates: Introduction December 8, 2008, Public Hearing and Second       Reading January 12, 2009.                                                                                

 

Mayor Hornaday called for a motion for the adoption of Ordinance 08-62 for introduction and first reading by reading of title only.

 

WYTHE/LEWIS - SO MOVED.

 

There was no discussion.

 

VOTE: YES. NON OBJECITON. UNANIMOUS CONSENT.

 

Motion carried.

 

CITY MANAGER’S REPORT

 

A.        City Manager’s Report

 

  1. Cell Phone Service RFP: The City has placed an RFP for cell phone services on the street. We are looking to see which provider might provide the best deal now that there is a little more competition in the local market. We are looking for a 1 or two year contract with very specific services. The closing date for proposals is December 30 and we will ask the Council to approve a contract at its meeting on January 12.
  2. Pratt Deferred Assessment: At the last meeting, Council declined a request by the Pratt Museum for a deferred assessment on the Spruceview LID project. It did so upon the advice of the City Attorney and his reading of the relevant section of the code. The City has subsequently received a letter from the Pratt objecting to the Council action. I have shared this letter with the City attorney and discussed the specific circumstances with him. A resolution amending the last one and providing for a deferred assessment for the Pratt will be on the Agenda for Council consideration at the first meeting in January.
  3. Water Treatment Plant / Change Orders: We recently approved two change orders / contract modifications on the construction contract with Udelhoven. The Code and the procurement manual authorize the CM to approve change orders if they are within the existing budget approved by Council provided that the Council is notified. These change orders are within the existing approved budget and will use some of the contingency fund. Copies of the Change Orders with explanations are attached.
  4. Garbage Collection RFP: An RFP for garbage collection services is presently available for those companies interested in providing this service. The RFP allows interested companies to bid on both garbage collection on the Spit and garbage collection in town for City owned facilities. The RFP encourages companies to provide proposals that include equipment and operational plans which reduce litter, are user friendly, and make it harder for bears, birds, and other scavengers to get into garbage. The closing date for proposals is in early December. We will ask the Council to award a contract at the first meeting in January.
  5. Seawall Updates: The City has received an insurance check from the insurance company. About half of that check ($22,000) has been sent to the contractor to pay him what he is still owed for work already completed after the storm event. The remainder will likely be used to pay for additional damage repair on an adjacent panel. The property owners are doing very well raising their share of the deductible. The property owners report that they are now official and have approved Articles of Incorporation and Bylaws. The City is presently accounting for all tax revenues that have come in from special service district taxes. The money will be segregated in a separate account and invested with an AML investment account. We continue to explore alternative ways to levy the Special Service Area Tax is a manner that is more acceptable to the property owners. The Association will need to come up with a budget for next year so that the City can set a mil rate.
  6. Personnel Policies: The revised personnel policies are about to undergo a second 30 - day review by the employees. We had planned to have the new draft of the document to the Council by this meeting for approval. However, Sheri and City Attorney Holly Suozzo commenced a second, more comprehensive overhaul of the policies which took a great deal of time. The second set of amendments are extensive enough to require another review by employees. The idea behind this second revision was to reorganize the document and make sure it was internally consistent, eliminate redundancy, make it more user friendly, and update it with respect to rapidly changing state and federal laws. The Personnel Policies, much like the City Code, have been revised periodically over the years to address specific problems or areas of interest. We are now taking a step back, and looking at the document as a whole. I believe this will produce a much better document. We plan to bring it to the Council at the first meeting in January. We concluded that this delay was probably a good thing anyway since Council has enough on its plate right now with the budget.
  7. Drug Sniffing Dog Revisited: Some Council members may recall that not too long ago, we had a serious discussion about whether the Homer Police Department should invest in a police dog trained to sniff out drugs. There were several local organizations who offered to help with the cost of training and care. After much discussion, it was decided that it would be best to have the dog stationed with the Troopers in Anchor Point. The Troopers had a greater need for the dog and appeared to have the necessary resources to begin such a program. The Troopers agreed to make the dog and its handler available to the City whenever it was needed. This has not worked out as planned. Chief Robl reports that drug cases have spiked significantly here in the last eight months and enforcement would have been much easier if the dog was available. The Troopers are experiencing budget isues and a shortage of resources. They have refused to allow the handlers to work overtime on Homer cases. As a result, the dogs is frequently not available and is not being used enough to keep it trained properly and build up its record of successes. The Chief is taking a second look at getting a dog stationed here. I asked him to compile what he thinks it would cost in terms of money and resources and what the potential benefits would be. We will be making a report to Council soon, probably in early January. 
  8. Port and Harbor Commission Request for Sales Tax Revenues: The Port and Harbor Commission recently asked staff to draft a resolution for Council consideration that would dedicate sales tax money generated through transactions at the port and harbor to the Port and Harbor Enterprise Fund. The revenue would go into the Enterprise Fund Depreciation Reserves and used for major repairs and new construction. We have delayed bringing the resolution to you at this meeting because we are not entirely clear about the intent of the Commission. Understanding the intent will have a major impact upon how the resolution is written and whether or not an ordinance and a vote of the people is required. I plan to attend the Port and Harbor Commission meeting on November 26 to discuss this with them.
  9. Calvin and Coyle Trail: The City and the Kachemak Heritage Land Trust have worked together to improve parking and trailhead conditions at the trail terminus on Mariner Drive. There used to be no real parking area for trail users at the end of Mariner Drive. Cars were parked in the ROW (on the narrow road surface). This caused problems for local residents. The Land Trust constructed a small parking area on its land off  the ROW. The City helped by providing limited design services, 100 cy of gravel, and a culvert. In the process, Mariner Drive was extended about 75 feet to provide for access to the parking area and room for vehicles to turn around. The improvement plan is attached for your information. The money and in-kind services the City provided were considered in part to be payment for an easement the Land trust provided when the Mariner Drive Water and Sewer LID happened several years ago. All and all, a good outcome for both organizations, the neighborhood, and the public at large. The Land Trust hopes to improve and relocate the trail this summer.
  10. FY 2009 Budget Disclosures: There are several potential conflict of interest disclosures that I want to make before we start discussing the FY 2009 Budget. I will bring these disclosures up during the meeting(s) but thought it was important to get them on the record sooner rather than later. First, my spouse Mary is a member of the Pratt Museum Board of Directors. While I have no direct financial interest in how much the City might provide in funding to the Pratt, some might conclude that it would be difficult for me to be unbiased. Second, Mary is a member of the Homer Volunteer Fire Department (volunteer EMT). So, there are some items in the Fire Department Budget that may benefit Mary and I directly. Those items are all included in the Volunteer Incentive Program which includes things a savings bond and gift cards that can be used for fuel.
  11. APOC Hearing. The APOC Board is scheduled to resume consideration of the Griswold vs. The City of Homer and Mayor Hornaday Case at its meeting in early January. The Board will consider the additional evidence not included in their packets the first time ( information that was included in the public reading file but not deemed relevant to this case by the staff). Mt understanding from talking to Tom Klinkner is that the Board will consider the additional evidence, go into deliberations, and hopefully make a decision. No additional testimony or evidence will be permitted.

 

Asked by Council to list the budget cuts for 2009, City Manager Wrede reported $700,000 to $800,000 was trimmed from the budget. Cuts include: the special projects manager position from Public Works, depreciation and fleet reserves were reduced by 60%. Reduction of depreciation accounts could have a long term effect. Some pieces of equipment need to be recycled out. We will still grow the reserves at a time when we have money. There are no funds to implement the Climate Action Plan. The plan was adopted and review is happening now; there is no money to implement recommendation. There is no additional money for improvement of parks, with a reduced contribution to the parks reserve. Karen Hornaday Park and Jack Gist Park plans are being worked on. As to water/sewer projects, there is no funding for a water shed land acquisition. With sales tax revenues down and the new voter initiative there will be less funds coming into HAWSP and HARP. It will mean less money for trails. There are no new departments and no new programs. As to economic development, there are serious economic times and it may get worse than getting better. There is talk about growing the economy and creating jobs. There is no money to allocate. Library hours cannot be extended to evenings and weekends, as there is no money for added staff. Repair of city buildings must be put off. There were significant cuts; it is a hold the line budget placing restraints on growth. Capital projects are frozen now.          

           

B.         Bid Report                                                                                                      

           

C.        Question of the Week                                                                                      

 

COMMITTEE REPORT

 

A.        Alaska Statehood Anniversary Committee

           

B.         Lease Committee

 

C.        Transportation Advisory Committee

 

D.        Permanent Fund Committee

 

E.         Public Arts Committee

 

PENDING BUSINESS

 

A.        Ordinance 08-32(S)(A), An Ordinance Enacting Homer City Code 9.16.100 to Exempt          Sales of Nonprepared Foods from September 1st through May 31st of Each Year and    Incorporating in the Homer City Code All Other Sales Tax Exemptions Adopted by the    Kenai Peninsula Borough. Mayor. Introduction July 28, 2008, Public Hearing November       24, 2008 and Second Reading December 8, 2008.                                          

 

Mayor Hornaday called for a motion for the adoption of Ordinance 08-32(S)(A) by reading of title only for second and final reading.                       

 

WYTHE/NOVAK – SO MOVED.

 

WYTHE/ROBERTS – MOVED TO AMEND IN THE TITLE LINE 5 AFTER EACH YEAR I WOULD LIKE TO INSERT COMMA PENDING THE COMPLETION OF AN ADVISORY VOTE REGARDING THE SALES TAX STRUCTURE FOR NONPREPARED FOOD ITEMS COMMA.

There was no discussion.

 

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

 

Motion carried.

 

WYTHE/ROBERTS – MOVED TO AMEND BY ADDING A NEW SECTION 4 WHICH WOULD READ: THE COUNCIL INTENDS TO BRING FORWARD A PROPOSITION FOR AN ADVISORY VOTE REGARDING THE SALES TAX STRUCTURE FOR NONPREPARED FOOD ITEMS AS SOON AS ADMINISTRATIVELY PRACTICAL.

 

Councilmember Novak explained the voters will vote for options on the City’s portion of nonprocessed food sales tax. Any change will be made by a vote of the people.

 

Councilmember Wythe added the purpose of the amendments is the KPB ordinance states it will remove the Borough’s sales tax. Homer’s City Code is closely tied to the Borough’s code. Effective January 1 the collection of sales tax will stop. We will go back to the voters. It provides an avenue to provide community understanding of what is lost in sales tax revenues.

 

If the ordinance passes, Homer will be the only city within the Borough that is not collecting sales tax.

 

VOTE: (amendment) YES. NON OBJECTECTION. UNANIMOUS CONSENT.

 

Motion carried.

 

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

 

Motion carried.

 

B.         Ordinance 08-59, An Ordinance of the City Council of Homer, Alaska, Continuing the             Levy of a Sales Tax Under HCC 9.16.010 on Sales of Nonprepared Foods in the City of    Homer, but Reducing the Rate of the Sales Tax Levied on Nonprepared Foods Under HCC 9.16.010(a) from 3.0% to 1.5% During the Period from September 1st through May     31st. Novak/Roberts. Recommended    Dates:   Introduction November 24, 2008, Public          Hearing and Second Reading December 8, 2008. 

 

Mayor Hornaday called for a motion for the adoption of Ordinance 08-59 by reading of title only for second and final reading.

 

NOVAK/ROBERTS - SO MOVED.

 

NOVAK/ROBERTS – MOVED TO TABLE.

 

VOTE: YES. NON OBJECTION. UNANIMOUS CONSENT.

 

Motion carried.

C.                    Ordinance 08-61, An Ordinance of the City Council of Homer, Alaska, Amending the             FY 2008 Operating Budget in the Amount of $432,178.79 ($212,795.36 General Fund, $141,978.87 Water and Sewer Fund, $77,404.57 Port and Harbor Fund). City Manager/Finance. Recommended Dates: Introduction November 24, 2008, Public Hearing and Second Reading December 8, 2008.                                                      

 

Mayor Hornaday called for a motion for the adoption of Ordinance 08-61 by reading of title only for second and final reading.

 

NOVAK/ROBERTS – SO MOVED.

 

Mayor Hornaday called for a recess at 8:02 p.m. and reconvened the meeting at 8:10 p.m.

 

WYTHE/ROBERTS – MOVED TO AMEND BY ADDING A SECTION 3 WHICH WOULD READ THAT THE BALANCE OF THE EXCESS REVENUES FOR 2007 AND THE STATE REVENUE SHARING FUNDS FROM 2008 WILL BE PLACED IN THE 2008 GENERAL RESERVE FUND.

 

The excess balance for 2007 revenues was $466,167 prior to the $432,000 over expenditure for 2008. The State revenue sharing was $330,000.[1]  It will place close to $660,000[2] into the reserve fund for 2009 if there should be excess expenditures. The most recent figures on tax revenues indicate we will be shorter than reflected 2009 revenues.

 

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

 

Motion carried.

 

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

 

Motion carried.

 

D.        Ordinance 08-50, An Ordinance of the City Council of Homer, Alaska, Appropriating             Funds   for the Calendar Year 2009 for the General Fund, the Water-Sewer Fund, the             Port/Harbor      Fund, Debt Funds, Capital Reserve Funds (Conditional Expenditures).       City Manager. Introduction October 27, 2008, Public Hearings November 24 and December 8, 2008 and Second Reading December 8, 2008.   

 

Mayor Hornaday called for a motion for the adoption of Ordinance 08-50 by reading of title only for second and final reading.                                   

 

NOVAK/WYTHE – SO MOVED.

 

NOVAK/ROBERTS – MOVED TO AMEND TO DECREASE $27,500 FROM HOMER FOUNDATION ACCOUNT #5830, DECREASE $5,000 FROM TRANSPORTATION ACCOUNT #5236, INCREASE $17,500 TO MUSEUM ACCOUNT #5801, INCREASE $15,000 TO GLOBAL WARMING ACCOUNT #5295.

 

Councilmember Howard reiterated her belief to keep the budget expenditures to the bare necessities and review the items Mr. Novak listed in July.

 

VOTE: (amendment) YES. NOVAK, LEWIS, ROBERTS, WYTHE, ZAK

VOTE: NO. HOWARD

 

Motion carried.

 

VOTE: (main motion as amended) YES. NOVAK, LEWIS, ROBERTS, WYTHE, ZAK

VOTE: NO. HOWARD

 

Motion carried.

 

Councilmember Roberts called for a point of order, as water and sewer rates were not discussed.

 

ROBERTS/NOVAK – MOVED FOR IMMEDIATE RECONSIDERATION.

 

VOTE: YES. NON OBJECTION. UNANIMOUS CONSENT.

 

Motion carried.

 

NOVAK/ROBERTS – MOVED TO AMEND THE BUDGET TO REFLECT IN THE WATER/SEWER RATES THAT WE WILL BE USING THE EXISTING RATES AS ON PAGE 10-1.

 

Councilmember Wythe is not supportive of no change in the rates. In the length of time it will take Council to change the rates we will be digging a deeper hole.  

 

Councilmembers Roberts and Novak expressed the need to re-examine and evaluate the rates in the near future.  

 

VOTE: (amendment) YES. ZAK, NOVAK, LEWIS, ROBERTS 

VOTE: NO. HOWARD, WYTHE

 

Motion carried.

 

VOTE: (main motion as amended) YES. WYTHE, NOVAK, LEWIS, ROBERTS

VOTE: NO. ZAK, HOWARD

 

Motion carried.

 

NEW BUSINESS

 

None.

RESOLUTIONS

 

A.        Resolution 08-121, A Resolution of the City Council of Homer, Alaska, Establishing the          2009 Regular Meeting Schedule for the City Council, Economic Development Advisory          Commission, Library Advisory Board, Parks and Recreation Advisory Commission,    Advisory Planning Commission, Port and Harbor Advisory Commission, Lease   Committee, Public Arts Committee, Transportation Advisory Committee and     Permanent Fund Committee. City Clerk.

 

Mayor Hornaday called for a    motion for the adoption of Resolution 08-121 by reading of title only.                                       

 

WYTHE/NOVAK – SO MOVED.

 

Councilmember Roberts noted the meeting on September 8th.

 

VOTE: YES. NON OBJECTION. UNANIMOUS CONSENT.

 

Motion carried.

 

B.         Resolution 08-122, A Resolution of the City Council of Homer, Alaska, Reducing the Mil Rate by .5 Mil for Next Year and Establishing a 2009 Mil Rate of 4.0 Mils Within the City. Novak.

 

Mayor Hornaday called for a motion for the adoption of Resolution 08-122 by reading of title only.

           

NOVAK/ROBERTS – SO MOVED.

 

NOVAK/LEWIS – MOVED TO TABLE.

 

There was no discussion.

 

VOTE: YES. NON OBJECTION. UNANIMOUS CONSENT.

 

Motion carried.

 

C.        Resolution 08-123, A Resolution of the City Council of Homer, Alaska, Revising Certain Portions of the Port and Harbor of Homer Terminal Tariff No. 600 and Amending the City of Homer Fee Schedule Accordingly. City Clerk.

 

Mayor Hornaday called for a motion for the adoption of Resolution 08-123 by reading of title only.      

 

NOVAK/ROBERTS – SO MOVED.

 

There was no discussion.

VOTE: YES. NON OBJECTION. UNANIMOUS CONSENT.

 

Motion carried.

 

D.        Resolution 08-124, A Resolution of the City Council Amending the City of Homer Fee Schedule Under Airport Terminal Facility, Annual Parking Pass, and Under Planning and Zoning Department Fees for Zoning Permits and Conditional Use Permits. City Clerk.

 

Mayor Hornaday called for a motion for the adoption of Resolution 08-124 by reading of title only

                                                                                                                                   

ROBERTS/NOVAK – SO MOVED.

 

There was no discussion.

 

VOTE: YES. NON OBJECTION. UNANIMOUS CONSENT.

 

Motion carried.

 

COMMENTS OF THE AUDIENCE

 

None.

 

COMMENTS OF THE CITY ATTORNEY

 

Attorney Tom Klinkner had no comments.  

 

COMMENTS OF THE CITY CLERK

 

City Clerk Johnson commended the Mayor and Council for passing the budget, in an especially hard year.

 

COMMENTS OF THE CITY MANAGER

 

City Manager Wrede thanked the Mayor and Council for their hard work on the budget and their patience. He wished everyone a happy holiday season.

 

COMMENTS OF THE MAYOR

 

Mayor Hornaday thanked Council, City employees and Administration and all the people that took an interest in the budget. It was a really tough year. He wished everyone a merry Christmas and Happy Holidays.

 

COMMENTS OF THE CITY COUNCIL

 

Mayor Pro Tempore Novak commented the budget was passed with an $800,000 reduction in income based on the tax on nonprocessed foods. Any change will be made through proposition by a vote of the people. He realizes we are the only city that is not doing this. He appreciates we will not have to pay for tax on food; we will have to pay some other way. The choice does come down to the people. Some issues were not clear. Council balanced the budget with what we have and will move ahead.

 

Councilmember Zak had no comment.

 

Councilmember Wythe expressed appreciation at getting through the budget. She is happy with the change of resolution from the Council regarding the sales tax. There are a lot of things the Council has to do without direction and make a choice. With direction from the voters we have to honor their desires; you cannot always fund everything. It is incumbent on Council to help people understand fully what it means not to have the revenues coming into the City. There is no money for extras and barely have enough money to maintain roads and the water and sewer system. The City only has one source of revenue, and that is the citizens of the community. It is either through property tax or sales tax. The City Council has worked diligently the last four years to assure all citizens have had the opportunity to contribute their wishes. It has always been a mission of hers to educate our community. Through wisdom voters make good decisions. It should be a focus of the Council in the upcoming year. Mrs. Wythe wished everyone a Merry Christmas and a safe and happy New Year.

 

Councilmember Roberts said she appreciated working with everyone of the budget. Everyone worked well together; there were tough decisions this year. She echoed the comments of Councilmembers Novak and Wythe. She wished happy holidays to everyone.  She thanked City employees for assuring LED lights were on the outside of City Hall. They will save lots of money.

 

Councilmember Lewis commented it is his first budget and education he at time would have liked to pass on. He didn’t like the idea that 18% of the registered voters were the ones that made the decision on the sales tax. Only 27% voted. In school those are failing grades. If people want to see a change, they have to get out and vote. It is real simple, you just have to stop by and mark a paper. He wished all a Merry Christmas.

 

Councilmember Howard expressed her respect for the voters and the marching orders they gave to Council. The 18% that voted are same 18% that put me in the chair. She is very obedient; when the voters speak she responds. She did not vote to do away with the food tax. She knew the cost to the City. She had never paid tax on food until moving to Homer. Mrs. Howard thanked the Finance Department and everyone else that worked on budget. She requested bigger notebooks next year for all the infill. Beth talks about citizens becoming informed and well aware. Mrs. Howard will be working on the citizens leadership academy in the coming year. She wished everyone happy holidays.

 

ADJOURNMENT

 

There being no further business to come before the Council the meeting was adjourned at 8:31 p.m. by Mayor James C. Hornaday. The next Regular Meeting is scheduled for Monday, January 12, 2009 at 7:00 p.m. The next Committee of the Whole is scheduled for Monday, January 12, 2009 at 4:00 p.m. All meetings scheduled to be held in the Homer City Hall Cowles Council Chambers located at 491 E. Pioneer Avenue, Homer, Alaska.

 

 

______________________________

JO JOHNSON, CMC, CITY CLERK

 

Approved: _____________________

 

 

 


[1] $379,649 municipal energy credit (as provided by Finance 12/09/08)

[2] $845,816 reserve (as provided by Finance 12/09/08)