Session 02-25, a Regular Meeting of the Homer City Council was called to order at 7:30 p

Session 02-25, a Regular Meeting of the Homer City Council was called to order at 7:30 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 Council's Committee of the Whole met from 4:02 p.m. to 6:00 p.m., agenda items were the Regular Meeting agenda and City Manager hiring process.

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

STAFF: ACTING CITY MANAGER ROBL

CITY ATTORNEY TANS

CITY CLERK CALHOUN

FINANCE DIRECTOR BAUGH

LIBRARY DIRECTOR HILL

PLANNING DIRECTOR TUCKER

PUBLIC WORKS DIRECTOR MEYER

ADMINISTRATIVE ASSIST. LIVINGSTON

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.

PUBLIC COMMENTS UPON MATTERS ALREADY ON THE AGENDA

There were no public comments.

RECONSIDERATION

A. Memorandum 02-64, from City Clerk, Re: Councilmember Kranich’s notice of Reconsideration issued 11/25/02 of Ordinance 02-44, Of the City Council of the City of Homer, Alaska, Amending HCC 21.69.020, Public Hearing Procedures, to Publish Notice at Least Once in a Paper of General Circulation.

Recommendation: Approve the reconsideration of Ordinance 02-44.

FENSKE/KRANICH - MOVED TO APPROVE RECOMMENDATION OF MEMORANDUM 02-64.

Councilmember Kranich advised the Council that after doing some thinking about this Ordinance and the action time line required by the Planning Commission he felt that this Ordinance should come back before the Council. He noted that there are some special items that come before the Planning Commission, such as, Conditional Use Permits, which have to be acted upon within 45 days or these permits are considered approved.

VOTE: YES: NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

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 Resolution 02-79 be placed under Resolutions.

A. Homer City Council unapproved meeting minutes of November 25, 2002 Regular Meeting. Recommend approval.

B. Resolution 02-77, Of the City Council of Homer, Alaska, Establishing the 2003 Regular Meeting Schedule for the City Council, Library Advisory Board, Parks and Recreation Advisory Commission, Advisory Planning Commission, and the Port/Harbor Advisory Commission. City Clerk. Fiscal note: Cost of advertising meetings and changes to the schedule such as special meetings, worksessions, committee meetings, etcetera. Recommend adoption.

Memoranda from Advisory Bodies as backup.

C. Resolution 02-78, Of the City Council of Homer, Alaska Renewing the Legal Services Agreement with Perkins Coie for the Term of January 1 through December 31, 2003 and Authorizing the Mayor to Execute the Agreement. City Manager. Fiscal Note: 100.5210.100, Council/Professional Services 45 hours per month for $7,650.00, interest 10.5% for over due payments, $175 per hour for Gordon Tans and six free trips to Homer - no travel time or expenses. Recommend adoption.

D. Resolution 02-79, Of the City Council of Homer, Alaska Extending the City Hall, Parks and Cemeteries Maintenance Contract with B & C Lawn Care for the Contract Term of May 14 to September 1, 2003 in the Amount of $15,020.00 and Authorizing the City Manager to Execute the Contract Extension. City Manager. Fiscal Note: 100.5210.149, 175 and 178 professional services for City Hall, parks and cemeteries maintenance. Recommend adoption.

Placed under Resolutions as Item D.

E. Memorandum 02-66, from City Manager, Re: Lease Approval - Various Tenants of Lots 9, 10 and 11, City of Homer Industrial No. 3. Fiscal Note: Revenue 400.4650.600. (Amounts per month are noted under New Business.) Recommend approval.

Councilmember Kranich requested that Item E. be placed under New Business.

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

VOTE: YES: NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

VISITORS

A. Paul Seaton, Representative elect.

Representative Elect Seaton reported to the Council his Legislative assignments which are; Chair the House Special Committee on Fisheries, Vice Chair of Education Committee, Member of Health, Education and Social Services Committee and a Member on State Affairs Committee; adding that he feels these will be real key for the Peninsula and Homer. He advised that there was a House Majority Retreat with many neat and interesting people in attendance. He commented on the state budget situation, that $242.3 million is an anticipated hole for the FY 04 General Fund. He emphasized that this is not a fiscal gap, the difference between revenues and expenditures, but is the amount needed to keep the existing budget, with inflation. He noted that some things are a little fuzzy, with one of the largest items Health and Social Services, Medicaid Fair Share $55.6 million that was not reimbursed and Medicaid FMAP $23.9 million that is being reimbursed at the rate of the rest of the country, because there was not a renewal of a higher rate in the continuing resolution. He shared the hope that at least one of these on Medicaid will be resolved by the Senator on the Appropriations Committee. The debt service for the new General Obligation Bond is $18 million for those bonds passed this last year. He stated that what has happened is that capital projects have been removed for the capital budget and moved into an operational budget. He announced that the Finance Committee has stated that they will “kill” any Bills that have a significant fiscal note, which is not good news for funding of projects. He addressed the Council regarding the Homer Library situation, which is one of Homer and the Community’s top priorities, that there is an opportunity for creative funding. He noted that the General Obligation Bonds that the voters passed, this last election, has a co part in the funding of debt reimbursement to the municipal school districts across the state. He reported that the state has agreed to reimburse, for six years, any project that is on the state priority list at a 70% reimbursement rate of bond retirement and 60% for those items not on the priority list. Therefore, in the realm of education, he suggested that if the City, College and School District all worked together the library project could go forward as a bonded package through the school district and come to the Council or whoever, for a contract for operations. Mr. Seaton interjected that this project would have to be approved by the “Peninsula”. He advised that he already checked with the former Chair of the House Finance Committee regarding this idea and the former chair stated that as long as it is owned by the School District and there are operational controls it should pass with no problem. Mr. Seaton emphasized that this is a way the community can get 60% financing for this project. He listed individuals and bodies that he has discussed this with: Library Advisory Board, School District, some School Boardmembers, and that he is meeting Thursday with local school people. Mr. Seaton relayed that the College has mentioned before about putting up operational money for the library.

There was a brief question and answer period.

ANNOUNCEMENTS/PRESENTATIONS/BOROUGH REPORT/COMMISSION REPORTS

A. Councilmember Stark, Travel Reports.

B. Mayor’s Travel Report.

In the Mayor’s report is information on the Valdez Convention Center.

PUBLIC HEARING(S)

A. Ordinance 02-43, Of the City Council of the City of Homer, Alaska Amending the Subdivision Code, Chapter 22.10 of the Homer City Code to Provide for an Abbreviated Plat Approval Procedure for Certain Small Subdivisions. City Manager. (First Reading October 14, 2002, Public Hearing October 28, 2002/rescheduled to November 4,2002, Second Reading November 25, 2002 postponed, Public Hearing December 9, 2002 and Second Reading as postponed directly after public testimony.) Main motion is on the floor as postponed. An amendment is required to adopt Ordinance 02-43(S).

A.1. The Public Hearing includes Ordinance 02-43(S) with the Planning revisions.

There was no public testimony.

Main motion as postponed on November 25, 2002: BECK/FENSKE - MOVED FOR ADOPTION OF ORDINANCE 02-43 BY READING OF TITLE FOR SECOND AND FINAL READING.

KRANICH/BECK - MOVED TO AMEND THE MOTION TO ADOPT ORDINANCE 02-43(S).

City Attorney Tans confirmed that subparagraphs b and c. do have conflicts.

VOTE: YES: NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

LADD/YOURKOWSKI - MOVED TO POSTPONE TO THE SECOND MEETING IN JANUARY IN ORDER TO GIVE ZAK, (PLANNING DIRECTOR ) AN OPPORTUNITY TO COME BACK WITH SOME ALTERNATE LANGUAGE.

City Attorney Tans was asked if he could provide Council the language tonight so that they could amend the Ordinance and delete the conflicts.

City Attorney Tans responded that the language would take more careful thought than what he felt he could provide this quickly.

Councilmember Fenske called for the question, there were no objections.

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

Motion carried.

B. Ordinance 02-51, Of the City Council of Homer, Appropriating Funds for the Calendar Year 2003 for the General Fund, the Water-Sewer Fund, the Port/Harbor Fund, Debt Funds, Capital Reserve Funds (Conditional Expenditures). City Manager.(First Reading November 25, 2002, Public Hearing December 9, 2002 and Second Reading directly after public testimony.)

B.1. Resolution 02-80, Of the City Council of the City of Homer, Alaska Amending the City of Homer Fee Schedule Regarding the Sewer and Water Rates. City Manager. (Public hearing only, action takes place under Resolutions.)

B. 2. Resolution 02-81, Of the City Council of Homer, Alaska Revising Certain Portions of the Port and Harbor of Homer Terminal Tariff No. 600. City Manager. (Public hearing only, action takes place under Resolutions.)

Asia Freeman, Director of Bunnell Street Gallery for ten years, voiced her great appreciation of the Council’s efforts as volunteers and the hard work the Council has to do in balancing the City budget. She emphasized the importance of City funding for the non profits, specifically the arts and culture and what that has done for the development of Homer’s image on an economic level and on a level that is attracting a growing number of retirees that play a key role in the strength of Homer’s volunteer core. This is especially essential in the situation of a tight City budget and the resulting limited funds for non profits and then how that plays out for the non profits themselves. She noted that this is an interesting and significant partnership between the City, non profits and residents. Ms. Freeman shared with the Council that it has been very exciting as a resident and person who has grown up in Homer to see the ways in which Homer has matured as a community and to see how the arts and culture, and resources the non profits offer attract residents and develop the quality of life in the area. She voiced her pleasure about the approach that the City has taken in the long view of things and that she recognizes this with this year’s budget being an even tighter non profit scenario. She shared her hope that this will be a blip on the screen as work is done with increasing momentum toward a picture in which the economic and cultural impact of the arts and the non profits have a growing and vital roll within the whole scheme of things. Maybe on that wonderful day when some of oil spill money comes in or something, that there is a strategy in place in which, through the values and precedence that Council has set in the budget design, that the greater goals can be achieved for the ideal community and the one that all enjoy so much. So to say that the non profits can survive with whatever they get is not untrue, but it is very critical to understand the relationship and the proportion that City funding plays in a level of the foundation of each of the non profits. She related Michael Hawfield’s, Director of the Pratt Museum, comments from many times in the past that it is a proportion that is like seven to one, that for each dollar that the non profits get from the City they are able to leverage another seven dollars from other foundations, from membership and from private sources. It has become very critical to the growth and the growing strength of the City’s non profits. She interjected that it is quite scary to think of the funding dropping back and the outfall that can have in each non profit’s stability. She compared this to a house foundation with one seventh of it gone and how that affects the whole. She emphasized that the non profits have been working very hard and the City funding that the non profits received over the years has helped the non profits grow and that the non profits will do their best to work with the best that the City can give them. She advised that the non profits want the Council to know how critical everything they do really is. She stated that Bunnell Street Gallery views itself as an essential community partner of arts and educational organizations. Whether that means hosting readings, helping to support the writer’s conference that the college offers, working and collaborating with the Arts Council and the Pratt Museum and wherever they can to save funds, to maximize the impact of the public and the private dollar. These are parts of non profit goals, assisting in the situation with the Borough Schools’ tight budgets. Ms Freeman reported that Bunnell Street Gallery has presented sixteen art outreach programs, including performances and hands on workshops to students at no cost to the school and is working to keep the community whole, to think about the ways in which the arts are so integral to lives, to the professional lives, to family, parents and may who are part of the community and how to maintain that and carry that message to the youth for their inspiration, for their satisfaction, for their productivity, and to keep them out of trouble and to keep them inspired. She acknowledged that this is in the Council’s hearts, that they will do the best they can and urged the Council to give the non profits the biggest bone they can.

Ron Alderfer, President of the Board of Directors for the Center for Alaskan Coastal Studies, reported that the Center for Alaskan Coastal Studies (the Center) owns property at the intersection of Lake Street and Smokey Bay Way and field stations in the Peterson Bay and Wynn Center on Skyline Drive. He commented on appropriation of funds for Homer not for profit organizations in general and the Center in particular. There are nine unpaid, hard working boardmembers of the Center and a much larger number of Center volunteers who support the small staff at the Center for Alaskan Coastal Studies. Due to the strong volunteer base financial support for the Center by the City is extraordinarily efficient in attracting visitors to Homer and in providing a truly memorable education. Both summer and winter services provide learning opportunities for a very large number of City residents, old and young. To date, the 2002 programs attracted 4,136 participants. In 2002 the Center celebrated it’s 20th anniversary as an organization and the organization keeps getting better. Enrollment is increasing and the scope of services is broadening. They receive rave notices from students and similar notices from parents and teachers of the younger students. Mr. Alderfer echoed Asia Freeman’s general comments and urged the Council to give generous consideration of the Center for Alaskan Coastal Studies because of the extreme leverage he thinks they can apply to whatever contributions are made. He relayed appreciation for similar support in the past with the Homer Foundation and hopes that it can, again, be part of their formula for next year.

Diane Borgman, Vice President of the Homer Council on the Arts, spoke on behalf of the twelve boardmembers and over 300 members. She commented on what non profits due for the community:

Help to shape the quality of life in Homer and on the Peninsula, and

The Homer community is known statewide as one of the best places to live partly due to the weather and good fishing but also because of the wealth of cultural activities and the community events that Homer’s non profits fund and organize every year.

The quality of life in Homer attracts tourists, new business and new residents which in turn strengthens the economy and expands the tax base. The Homer Council on the Arts has a specific goal to bring first class entertainment and educational opportunities at prices affordable to families in Homer and the $10,000.00 contribution that was received through the City, that was fifteen percent (15%) of the Homer Council on the Arts annual budget last year, helped to meet this goal. She advised that one example of how they do this is the Nut Cracker Ballet and Fair. The Nut Cracker Ballet Performance will be seen by more than 2,500 people and the crafts fair gives more than 90 local artisans the opportunity to sell their products in time for the holiday season. For many local artisans the Nut Cracker Fair represents an important part of their annual sales and is one of the few opportunities that many have to buy affordable booth space in an extremely busy and popular venue. She shared her experience at the fair this past weekend, working the main table, wherein people came up to her and asked what restaurant to go to. She reported that the Book Store was packed all weekend long due to the people coming to see the Nutcracker Fair. She emphasized that this is just one event out of dozens and dozens and that these really bring a lot of people and money into Homer. She commented that probably some of the B and Bs and Motels benefit, adding that she personally knows people who come to Homer from Anchorage, Kenai and Soldotna for the Nutcracker Fair. Another valuable program sponsored by the Homer Council on the Arts is the Arts for Kids Workshops and that last year approximately 150 children participated and dozens were turned away due to not having the facility to offer classes to all of them, interjecting that the goal is to be able to serve all of the children some day. In total 12,800 people attended events sponsored by Homer Council on the Arts last year and without City funds ticket sales may need to raise about fifteen percent (15%) to off set the revenue loss. Homer Council on the Arts would rather not raise fees. A twelve dollar Nutcracker Ticket would have to go up to fourteen dollars and the cost of children’s art workshops would jump from $50.00 to $58.00 and for some of the families this is a big increase. In addition to the tangible benefits municipal dollars bring to the Homer Council on the Arts this money also significantly improves the ability to raise other funds, municipal support is often a critical criteria granters use when awarding funds and one of the first things often asked is if the City gives any support or funds and if not, then the entity probably will not grant funding. She emphasized that they know that Council has the big picture and thanked them for all they do, knowing that it is a hard and, sometimes, thankless job. The funding for non profits is really a very small amount of the overall City budget that does a huge amount of good and impacts a large number of people in the community.

Ken Castner distributed a hand out that is a spread sheet of the City of Homer and Homer Foundation donations to various Homer area non profits. He commented that the Council’s budget shows a proposed $50,000.00 for the Pratt Museum and a proposed $50,000.00 for the Homer Foundation. In looking back over the years one would think that the Homer Foundation got these big gobs of money and that is not the real picture. He referred to the handout, pointing out that this is the real picture, and shows how the Homer Foundation adds to the City money in what they give to the same entities that the City has been giving to prior to the year 2000. He admitted that the museum has gone from about 90% of the City’s money to 70% in the last three years and it is also true that the Homer Foundation has started kicking in a lot more money to the entities. He reported that other organizations are getting more of the pie as the matrix was worked and as the Homer Foundation started evenly applying criteria to everybody’s application. Mr. Castner stated that, basically, all he wanted to do was point out that what the Council has in their budget package, with a lot of dashes, really are represented with real numbers. He advised that what the Homer Foundation has done is just taken on the task, that the Council gave three years ago, to wisely distribute the money. Regarding the spread sheet that he had distributed to the Council, he noted that it is an exact accounting of where the City money went and how it was supplemented with Homer Foundation money.

Janet Bowen, Director for the Homer Council on the Arts, stated that she really does not envy what the Council is doing, interjecting that the Homer Council on the Arts has a miniscule budget of $150,000.00 and that it turns her head in circles as she tries to make it balance. She acknowledged that Council has a difficult job. She emphasized the importance of the City just funding non profits, not so much on the amount given, and how that affects the other funding that the non profits are looking for, adding that Diane Borgman and Asia Freeman had both mentioned this. She advised that the Homer Council on the Arts is in the midst of a capital campaign and is looking for operational and large amounts of capital money. She reported that the Council on the Arts recently received three alternative drawings back from an architect and that one of these was pretty spectacular and much more money than they had anticipated spending on the building, being over $400,000.00. She commented on what this building would add to the City of Homer and to all the other entities that could use this facility, which would have a number of studios, a theatre and what not. She voiced her opinion that this is just so important to Homer as it grows, especially to the arts community. If she or Jenny Carrol, capital grants writer, are writing grants that are going to large foundations, such as Paul Alan or Murdock and requesting fairly large sums of money, as far as they are concerned, the Homer Council on the Arts need to be able to show that the City supports them. She noted that if the City does not support the non profits it does not “bode” well with the grantors. She commented that not getting grants does hurt the entire City. She encouraged the Council to dig in their pockets for just a little extra money for the non profits. She voiced her support of the Pratt Museum and that all of the non profits, as a whole, add to the quality of life in Homer.

Marilyn Sigman, Director for the Center for Alaskan Coastal Studies, reported that last year the Center for Alaskan Coastal Studies was extremely fortunate as one of the non profits to get one of the grants from the Homer Foundation from the City funding. She advised that they had not applied in the past and that many people think that the Center for Alaskan Coastal Studies is not within City limits due to having facilities across the Bay and up in Wynn that are not in City limits. She advised that the Center for Alaskan Coastal Studies reviewed the services that they do provide for people within the City and found that in the previous year that had served 1,000 people through programs at their own building, at the Pratt Museum, at the Boys and Girls Club, on the beaches and programs for the Schools. Fully, 25% of the Center for Alaskan Coastal Studies services are within the City and almost all of these are free of charge. Ms. Sigman testified that she would appreciate support and recognition that the Center for Alaskan Coastal Studies did provide services for the City and that they were not alone. She advised that the money that went last year to the groups funded, collectively served children, seniors, adults, and teens and met a lot of community needs in the arts, environmental science stewardship, and health and social services. The dollars that the City invests really are multiplier type dollars, because the non profits can leverage lots and lots of hours of volunteer time. A lot of foundations look to the evidence of community support and actually hard dollars. Hard dollars are very hard to come by in terms of trying to make things happen and go and Homer is an incredibly giving City with time, effort and contributions. Non profit services are often services that government really can’t provide and the City funding provides a partnership between the City and some of the non profit organizations to provide these services. Ms. Sigman urged the Council to fully fund whatever the Council can with these partnerships, particularly this pool that will be split among several non profits. She voiced support of the Pratt Museum and asked the Council to think of all the non profits that will make use of the City funds, very well.

Tabor Ashment made a statement regarding the second run of the Silver Salmon in the lagoon fishing hole. He advised that “they” are trying to raise funding to cover the cost, $25,000.00. He said he thought that some of the Council have been informed a little bit on this. He reported that with the floods that have occurred in all the lower Kenai Rivers the stocks are going to be down and essentially, the lower Kenai could be without a lot of fish for fall fishing. He voiced his opinion that this is important to the area and advised that the South Peninsula Sportsman Association has committed to $3,000.00 and other people are willing to donate. He noted that if everyone works together to raise the funding, the $25,000.00, they will be able to cover the feeding of the smolt. The Cook Inlet Aquaculture Association has the smolt and the $25,000.00 covers their expense to raise the smolt the rest of the way, otherwise they have to destroy the smolt. This is a worthwhile project and is one of the largest day care centers and everyone benefits.

Mayor Cushing called for a recess at 8:31 p.m., reconvening the meeting at 8:43 p.m..

LADD/YOURKOWSKI - MOVED THAT WE ADOPT FY03 BUDGET BY READING OF TITLE ORDINANCE 02-51 FOR SECOND AND FINAL READING.

There was discussion regarding the non profit funding, with the note that this is a tight budget.

STARK/ - MOVED TO AMEND CONTRIBUTIONS TO $80,000.00 FOR THE PRATT MUSEUM, AND $20,000.00 FOR THE HOMER FOUNDATION, FOUNDATION CONTRIBUTION AND $20,000.00 FOR THE HOMER FOUNDATION FOR THE DONATIONS.

Councilmember Stark withdrew his motion, primary amendment 1.

LADD/YOURKOWSKI - I’LL MAKE THE AMENDMENT THAT WE APPROVE THE RECOMMENDATIONS ON THE AMENDMENT FORM NUMBER TWO, ITEMS ONE THROUGH TWELVE.

1. Decrease $1,000 from 100.5236.100, Mayor and Council Transportation

2. Decrease $500 from 100.5237.100, Mayor and Council Subsistence

3. Decrease $10,000 from 100.5210.112, Professional Services, Chamber of Commerce.

4. Decrease $5,000 from Dept 114, Depreciation Transfers

5. Decrease $500 from 100.5208.140 Equipment Maintenance

6. Decrease $1,500 from 100.5231.145, Tools/Equipment.

7. Decrease $5,000 from Dept 149 Depreciation Transfers.

8. Decrease $10,000 from Dept 150 Fleet Transfers

9. Decrease $5,000 from Dept 160 Depreciation Transfers

10. Decrease $10,000 from Dept 170 Depreciation Transfers

11. Decrease $601 from 100.5286.171 Building Maintenance

12. Decrease $5,000 from Dept 175 Depreciation Transfers

There was no discussion.

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

Motion carried.

KRANICH/YOURKOWSKI - MOVED FOR THE ADOPTION OF ITEMS ONE THROUGH EIGHT ON THE PROPOSED AMENDMENT NUMBER ONE.

1. Decrease $72,101 100.4650.035 Rents ad Leases

2. Increase $72,101 400.4650.600 Rents and Leases

3. Decrease $31,395 from 400.4624.601 Berth Rent Monthly

4. Decrease $81,585 from 400.4625.601 Berth Rent Reserved

5. Decrease $6,930 from 400.4626.601 Berth Rent Transient Annual

6. Decrease $2,657 from 400.4627.601 Berth Rent Transient Semi Annual

7. Decrease $5,313 from 400.4628.601 Berth Rent Daily

8. Decrease $48,683 Transfers 400.600

Councilmember Kranich noted that this places $72,000.00 of the lease payments on the 30 Acres back into the Port/Harbor Enterprise Fund and brings the berth rate increase down from 15% to 3.78% and also has an amount in there for a bond repayment on the Pioneer Dock extended from a ten year to a twenty year payment plan.

VOTE: (primary amendment 3.) YES: NON OBJECTION UNANIMOUS CONSENT.

Motion carried.

LADD/BECK/STARK - MOVED TO AMEND SHEET NUMBER 3 IN ORDER TO GET US UP TO THE POINT WHERE WE ARE NOW FUNDING THE NON PROFITS, THE PRATT AT $80,000.00, THE HOMER FOUNDATION AT $20,000.00 AND PLACING $20,000.00 INTO THE ENDOWMENT OF THE FOUNDATION, I MAKE A RECOMMENDATION THAT WE APPROVE LINES ONE THROUGH SEVEN ON SHEET NUMBER THREE.

Deprecation accounts.

1. Increase $20,000 from 100.350 Contributions

2. Decrease $5,000 from 100.114 Leased Property

3. Decrease $7,700 from 100.140 City Hall

4. Decrease $5,000 from 100.145 Library

5. Decrease $5,000 from 100.149 Airport

6. Decrease $300 from 100.150 Fire Department

7. Decrease $15,000 from 100.170 Public Works Department

This increases the contributions to non profits from $100,000 to $120,000, $80,000 goes to the Pratt Museum, $20,000 goes to the Homer Foundation Endowment and $20,000 goes to the Homer Foundation for non profit distribution.

Council commented on the importance of the non profits and the overall benefit to the City. They noted that these monies facilitate the non profits ability to leverage more funding that comes into the community and makes Homer a better place to live. It was also noted how fortunate Homer is to have a foundation such as the Homer Foundation to partner with to help the non profits.

Finance Director Baugh advised that approximately $364,000.00, which includes fleet reserves, is the amount budgeted for depreciation accounts and this amendment subtracts $78,000.00 and that this is all General Fund.

Special Note: The Pratt Museum cannot go to the Homer Foundation and apply for additional City Funds.

VOTE: (primary amendment 4.) YES: NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

BECK/KRANICH/STARK - MOVED TO AMEND TO RECOMMEND TAKE $5,000.00 OUT OF PARKS AND RECREATION RESERVE FUNDING FOR STOCKING OF THE FISHIN’ HOLE.

$5,000 allocated from 151-385, Parks and Recreation Reserve for stocking fish at the Fishin’ Lagoon. This funding will be given upon confirmation that the Cook Inlet Aquaculture Association has received the rest of the funding for the raising of the smolt. Total amount needed is reported to be $25,000.00 and if the full funding goal is not reached the City does not cut the check.

Great appreciation was expressed for the stocking of the Fishin’ Lagoon/Hole and the fishing activities there and desire for the continued activity.

Mayor Cushing suggested that longer term funding be pursued out of Senator Stevens’ or Representative Young’s office.

Discussion ensued.

VOTE: (primary amendment 5.) YES: NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

Councilmember Kranich commented about taking $600,000.00 out of Port/Harbor depreciation reserve for capital projects; $350,000.00 for corrosion protection and replacement on the Deep Water Dock, another high mast light and upgrading restrooms. The harbor rates are set to strictly cover cost. With a cost covering rate, how is a capital project ever paid for since no dollars are set aside except in depreciation.

Mayor Cushing stated that at audit time there is generally extra funds, expenses over revenues. He offered to assist Councilmember Kranich in leading a charge to take some of those extra funds, at that time, and put those funds in these depreciation accounts.

STARK/KRANICH - MOVED TO AMEND THE STATED SCHEDULE TO ELIMINATE STEPS N. AND O. THAT WOULD LEAVE PROPOSED STEP M. (On page G.6. in the Budget.)

This will not decrease anyone’s pay and it will not prevent anyone from getting a raise. There was discussion to add Step N in 2003 or 2004 and Step O in 2004 or 2005. The present step L. goes up to $79,268.00 and step O is $88,343.00 a year. It was also stated for staff to not be in a hurry to add these steps.

VOTE: (primary amendment 6.) YES: KRANICH, BECK, LADD, STARK.

NO: FENSKE, YOURKOWSKI.

Motion carried.

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

Motion carried.

Final Fund amounts as amended: General Fund- ~~$6,995,522~~ $6,923,421; Water Fund- $1,170,903; Sewer Fund- $1,075,253; Port/Harbor Fund- ~~$2,790,036~~ $2,741,353; Capital Projects- ~~$3,509,696~~ $3,514,696; Internal Service Fund- $ 712,800 for Total Expenditures- ~~$16,254,210~~

$16,138,426. The property tax mill levy is set at 5.0 mills for 2003.

ORDINANCE(S)

A. Ordinance 02-42, Of the City Council of the City of Homer, Alaska Amending the Homer City Zoning Map to Zone Portions Annexed Area Identified as Study Area #1. City Manager. (First Reading October 14, 2002, Public Hearing October 28, 2002/rescheduled to November 4, 2002, Second Reading November 25, 2002 at which time was postponed, Second Reading as postponed December 9, 2002.)

Main motion as postponed on November 25, 2002. FENSKE/BECK - MOVED FOR THE ADOPTION OF ORDINANCE 02-42 BY READING OF TITLE FOR SECOND AND FINAL READING.

Councilmember Stark commented about the map and wondered which map is the most recent.

Planning Director Tucker advised that the most recent map is dated November 25, 2002 on page 115 of the packet.

KRANICH/LADD - MOVED TO POSTPONE AGAIN TO THE SECOND MEETING IN JANUARY. (January 27, 2003)

Reason for postponing is that there have been requests and/or comments/concerns from CIRI, UAA, Kenai Peninsula Borough, and property owners with no recommendations back from the Planning Commission.

Planning Director Tucker confirmed that this would facilitate time for the Planning Commission to forward a recommendation to the Council.

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

Motion carried.

B. Ordinance 02-44, Of the City Council of the City of Homer, Alaska, Amending HCC 21.69.020, Public Hearing Procedures, to Publish Notice at Least Once in a Paper of General Circulation. City Manager. Fiscal Note: Reduction in Planning and Zoning publication costs. (First Reading November 4, 2002, Public Hearing November 25, 2002 and Second Reading directly after public testimony and failed. Councilmember Kranich issued notice of reconsideration on 11/25/02, Reconsideration December 9, 2002.) Main motion back on the floor if reconsideration passes.

Memorandum from City Clerk supporting enactment.

Reconsideration was approved, the main motion is back on the floor. FENSKE/BECK - MOVED FOR THE ADOPTION OF ORDINANCE 02-44 BY READING OF TITLE FOR SECOND AND FINAL READING.

The City Clerk’s memorandum was recognized with the reasons for needing Code amendment. This ordinance resulted from meetings with the Planning Director, Planning Department and the Planning Commission Chairman. The City Attorney was consulted regarding the deletion of the additional public hearing advertisement. The City Attorney had no objections to this ordinance and agreed with its contents, he emphasized the need to be consistent with the Open Meetings Act - reasonable notice and believes the additional notice processes satisfies the reasonable notice. This ordinance is not intended to impede notification, and is intended to enhance the public process.

1. There is no state statute requirement for the additional public hearing notice.

2. HCC 21.60.020 was enacted prior to the internet, prior to the additional procedures by the Clerk’s office with regard to the Radio report, Kiosks (five), internet postings, et cetera.

3. The Publications are rotated between our two local papers.

4. Property owners within a 300 foot periphery are notified of the hearing.

5. The Public Hearing Notice is posted in three public locations besides those listed in item 2.

6. This ordinance sets the minimum and DOES NOT preclude the Planning Department, Commission or the Council from requesting and conducting additional advertisements.

7. The intent is to facilitate expeditious and more efficient processing, as requested by affected property owners, Commissioners and Staff.

8. Property owner efforts to pursue Conditional Use Permits, as an example, have been thwarted by the requirement for two consecutive weeks of publications which can delay the process for up to a month/month and a half.

9. Conditional Use Permits must be acted upon within 45 days of filing an application, or it is considered approved.

VOTE: YES: LADD, YOURKOWSKI, STARK, KRANICH, BECK, FENSKE.

Motion carried.

C. Ordinance 02-48, Amending Chapter 17.04 of the Homer City Code Concerning Special Assessments and Connection Fees for Properties Subdivided after the Creation of a Local Improvement District. City Manager. (First Reading November 4, 2002, Public Hearing November 25, 2002 and Second Reading directly after public testimony at which time was postponed, Second Reading as postponed December 9, 2002.) Needs a main motion for adoption.

Mayor Cushing “recused” himself, since his wife is currently participating in this process.

FENSKE/LADD - MOVED FOR THE APPROVAL OF ORDINANCE 02-48 BY READING OF TITLE.

City Attorney Tans was asked to relay his concerns with this Ordinance. He addressed these by the Council’s referred to him from the last Council meeting:

Question 1. Section 17.04.180, subparagraph d. This would allow the City Manager to approve a contract with late comers to a district on terms that are different from the actual members of a local improvement district.

Attorney Response: They have to be different in a way, because those late commers are not members of the LID governed by the statutory lien and the time for payment will be different, because they are coming in late. Nevertheless, they still have to be substantially the same, which should amount to the equivalent term and the amount adjusted for inflation and, perhaps, interest rate adjustments. Otherwise, these are similar payment plans, same number of years and basically the same amount.

Question 2. Whether by vacating a lot line a person could affect the assessment, his or her own assessment amount, by decreasing it, and as a consequence increasing the assessments of other property owners. Specifically that concern went to whether if the cost of to a property owner went up by more than 15% would that stop the project and require the Council to address those objections so that they are reduced.

Attorney Response: a. The 15% rule in the City Code does not apply to individual property owners, but to the cost of the entire project. So it would be a variance from the estimate in the improvement plan if the cost went up 15% more than that, then the objections have to be addressed.

b. If the process is that easy to manipulate by altering lot lines then perhaps there is something wrong with the allocation methodology that’s used. Perhaps equal lot assessments, which is what this is all addressed to, might not be appropriate in those cases where the lots are different or can be so easily made different.

c. There may be something wrong with the ordinances in that it may get to the point of fixing the assessment roll and identifying the share of each property owner too late in the process, if it can be manipulated in mid course that way. So, he suggested amending the Code to provide for allocation of the costs to the property owners earlier in the process so that the time it can be manipulated is reduced or eliminated entirely.

Councilmember Kranich noted that the City Attorney had provided a draft Ordinance revising Homer City Code Chapter 17.04 and inquired if this ordinances addresses the three issues as well as any other possible concerns the Attorney found.

City Attorney Tans responded that it does not address the 15% question, because that is already addressed in the ordinance. The second issue is the allocation method, which is not set by ordinance and can be done in each LID based on what is fair in that LID, which depends on the circumstances and nature of the LID. So that flexibility is allowed. The third issue was the timing of the fixing of the assessment roll and that is addressed, in a way that is entirely consistent with the State Law. 17.04.090(a) this proposal says that the final amount of the assessments against each property method of payment, etcetera, may be fixed at any time after the assessment roll is confirmed, which is as fast as it is done under state law.

There was further discussion regarding the relationship of the proposed Ordinance to Ordinance 02-48.

City Attorney Tans recommended passage of Ordinance 02-48 and then introducing, at another meeting, the proposed Ordinance amending Homer City Code Chapter 17.04.

Councilmember Ladd called for the question and there was no objection.

VOTE: YES: NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

City Attorney Tans was asked to incorporate Council’s concerns into Ordinance form, he responded that he would do so.

Mayor Cushing returned to the table.

D. Ordinance 02-53, Of the City of Homer Imposing a Temporary Four Month Moratorium on Applications for Permitted Retail Structures in Excess of 30,000 Square Feet of Building Area and to Require the Homer Planning Commission to Initiate a Review Regarding the Compatibility of Retail Structures of this Size with the Homer Comprehensive Plan and Zoning Regulations and to Report to the City Council Regarding Recommendations. Mayor. Ladd. (First Reading December 9, 2002, Public Hearing and Second Reading January 13, 2003.)

LADD/FENSKE - MOVED TO ADOPT ORDINANCE 02-53 BY READING OF TITLE FOR INTRODUCTION AND FIRST READING.

Councilmember Ladd stated that through this ordinance that he wants to make it very clear that, as a Council person he believes in a market economy of which there are going to be some restrictions based upon the short term and long term goals of the community. Through this Ordinance the Council can impact the development within the community of the large store in a positive way. He cited some of the things that he is looking out for:

Impact on existing and proposed residential development that may abut a proposed location. Need to make sure that this is protected.

Look at and study the impact of local traffic in the vicinity of the proposed development. Citing the example of the Lowe’s Store with limited entrance and exit.

Protect the impact on public services such as police, fire, emergency responses, water and sewer.

What kind of impact will large parking areas have on the safety and sewer system with a storm as recently occurred.

What impact will large store have on pedestrian traffic and access and egress.

Potential impact will an abandoned or empty large structure do to Homer, especially if it causes the economic environment in Homer to change.

Impact of a large store on the aesthetic qualities and the culture of the locality.

What is the compatibility of a structure such as this with the uniqueness of Homer.

Mr. Ladd stated that there are a lot of questions which have to be asked, that can be asked, and answered. Council needs to place into the City Ordinances or Code the process in which this is going to occur, but, more than that, the conditions and study of how these large stores would impact the community. Therefore, Mr. Ladd stated, in his opinion, it is very important to place this moratorium. He urged the Council to consider passing the substitute.

STARK/YOURKOWSKI - MOVED TO AMEND TO SUBSTITUTE ORDINANCE, 02-53(S) BY READING OF TITLE.

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

Motion carried.

LADD/KRANICH - LIKE TO AMEND THE SUBSTITUTE TO STRIKE ON PAGE, THE LAST PAGE, ITEM B. LINE 95 AND REPLACE WITH THIS ORDINANCE APPLIES TO ALL ZONING DISTRICTS WITHIN THE CITY.

Strike Item B. Line 95 which reads; ‘No person shall construct any very large retail structure anywhere in the City.’ and replace with: ‘This Ordinance applies to all zoning districts within the City.’

There was brief discussion that the moratorium should be for all areas and that the original language was covered elsewhere in the Code.

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

Motion carried.

STARK/KRANICH - MOVED TO AMEND TO ADD THE WORDS “AND WHOLESALE” IN EVERYWHERE IN THE ORDINANCE, INCLUDING THE TITLE WHERE IT SAYS RETAIL.

There was no discussion.

VOTE: (primary amendment 3.) YES: NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

STARK/BECK - MOVED TO AMEND TO CHANGE FOUR MONTHS TO SIX MONTHS.

Mayor Cushing noted that this would be wherever it comes up within the Ordinance.

It was duly noted that the Council may need to extend the moratorium.

VOTE: (primary amendment 4.) YES: NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

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

Motion carried.

CITY MANAGER’S REPORT

A. City Manager’s Report (Employee Anniversaries and Disaster costs incurred to date and projected future costs.)

Employees and Anniversaries: Mark Robl - 18 years, Will Hutt - 8 years, Jim Nelson - 4 years, Bryan Hawkins - 3 years, John Berelc - 3 years and Paul Meyer - 1 year.

B. Games Report.

Brief comment regarding needing a second declaration of emergency/disaster.

COMMITTEE REPORT

A. Town Square Task Force.

There is a meeting Thursday, December 12, at 7 p.m. in the Council Chambers.

PENDING BUSINESS

A. Memorandum 02-62, from Councilmembers Kranich and Ladd, Re: City Manager Hiring Process. (Postponed on November 25, 2002, main motion is on the floor.)

Memorandum from Personnel Officer as reviewed at the Worksession on December 2, 2002.

Memorandum from Councilmember Stark, supplemental to Personnel Officer Memorandum.

RECOMMENDATIONS:

1.Discuss and identify the selection process, who will participate in the process and approve a timeline including all process events and needs,

2.Establish a community committee for the purpose of reviewing all applications and submitting an advisory, non-binding recommendation to the City Council. (Each Councilmember will appoint one member to the committee and City Staff will have one representative - total 7 members.)

3.Clarify with the Personnel Officer as to who will have access to confidential applicant information,

4.Seek and select an Acting Manager to assume manager responsibilities should the position remain vacant beyond the end of January 2003,

5.Review and if necessary, update the City Manager job description and formulate expectations and goals. Clearly define the job so it is exactly known as to what kind of manager is needed for the City,

6.Decide on a plan to evaluate and rate applications and select final interview applicants,

7.Communicate with employers, community organizations or individuals to announce position, encourage applications, and discuss the hiring process and time frames,

8.Agree on an evaluation process including interview questions and/or one or more additional assessment exercises, and

9.Establish employment terms.

Main motion as postponed on November 25, 2002: KRANICH/LADD - MOVED FOR THE ADOPTION OF THE RECOMMENDATIONS OF MEMORANDUM 02-62.

Mayor Cushing called for a recess at 9:51 p.m., reconvening the meeting at 10 p.m.

LADD/KRANICH - MAKE A MOTION TO REPLACE ITEM 2. WITH THIS RECOMMENDATION THAT A COMMUNITY COMMITTEE COMPRISED OF SEVEN MEMBERS BE ESTABLISH FOR THE PURPOSE OF PARALLELING THE CITY MANAGER HIRING PROCESS AND SUBMITTING NON BINDING RECOMMENDATIONS TO THE COUNCIL. THE COMMITTEE MEMBERSHIP SHALL BE APPOINTED BY THE COUNCIL AND HAVE REPRESENTATION FROM EACH OF THE FOLLOWING GROUPS. I’VE LISTED SEVEN: CHAMBER OF COMMERCE, COMMERCIAL FISHING, TOURISM/TRAVEL, RETAIL BUSINESS, NON PROFITS, PORT AND HARBOR AND A MEMBER AT LARGE.

Replace item 2. ‘Establish a community committee for the purpose of reviewing all applications and submitting an advisory, non-binding recommendation to the City Council. (Each Council member will appoint one member to the committee, and City Staff will have one representative – total of 7 members).’ with this recommendation: The community committee comprised of seven members be established for the purpose of paralleling the City Manager hiring process and submitting non binding recommendations to the Council. The Committee membership shall be appointed by the Council and have representation from each of the following groups. Chamber of Commerce, Commercial Fishing, Tourism/Travel, Retail Business, Non Profits, Port/Harbor and a member “at large”.

The Council discussed pros and cons of having a community committee, some concerns with having a community committee were time lines, unwieldy process, and that input from the entire community is desired.

VOTE: (primary amendment 1.) YES: KRANICH, LADD.

NO: BECK, FENSKE, YOURKOWSKI, STARK.

Motion failed.

STARK/LADD - MOVED TO SUBSTITUTE SHERI HOBBS’ MEMO FOR MEMORANDUM -02-62, PAGE 181.

1. Select a hiring committee. Suggestion: Mayor and Council plus two members of the public. Possibly a representative from Chamber and Non-profits. These are two organizations that work closely with the City. Each organization cold appoint a representative.

2. Applications scored by each committee member with top 5 or 10 highest scoring applications selected.

3. Written questionnaire sent to top applicants. This allows hiring committee to review additional information prior to decision on final applicants. (Writing style, how they respond, etc.)

4. Background check. Suggest hiring local investigator for independent investigation.

5. A job description was already drafted and sent out with applications. Council may want to develop a list of goals for applicants to review prior to interview so they can be discussed.

6. Interviews. Tour of City and facilities, reception to meet directors prior to interview. This allows the applicant to become knowledgeable with the City and departments prior to interview. Council can determine whether to hold interviews in one day or spread them out with an evening dinner with a few members of the hiring committee.

7. Contract negotiations. A draft of the current City Manager’s contract can be used, with terms negotiated by hiring committee and applicant. An initial draft and salary can be provided to applicant once an offer has been made. The applicant can then negotiate further to include car allowance, moving expenses, etc.

Also includes the timeline, rating forms, background consent forms, and interview questions for reference.

There was brief discussion that a process is needed and this memorandum does provide for some public input.

STARK/BECK - MOVED TO AMEND THE SCORING ON PAGE 184 FOR THE SCORING ON PAGE 197, FOR THE SCORING OF THE APPLICANTS.

Mayor Cushing noted that the high scorer does not necessarily become the City Manager, which requires a vote of four of this body.

Scoring of applicants and the questionnaire sent to candidates in the 10-15 group, the Council should consider adding the following between 2 and 3. Tell us of your negotiating experience, of your experience working with legislative bodies, of your leadership abilities, and your community activities.

Scoring: 0-15 for BA; 5 for MBA, MPA, CPA, etc. 5 more for additional.

0-10 Management experience (5 yrs. min.), budget preparation.

0-15 Background in municipal government (1/year)

0-15 Management experience in Alaska (1/year)

0-10 Background with coastal community (1/year)

0-10 Work history for depth and stability

0-10 Negotiating experience

0-5 Experience with legislative process, capital improvement projects

0-5 Leadership, special projects, community activities

0-5 Application/resume thoroughness, attention to detail, writing

After the applications are scored to bring the list to 10 to 15 then written questions will be sent to the applicants.

Mayor Cushing emphasized that for the final analysis there will be interviews.

Scoring, additional categories, questionnaire and goals were discussed.

Regarding community activities, the City Attorney Tans advised that there should be a limitation, inviting the applicants to not identify any community organizations the character of which might indicate race, creed, color, origin or ancestry.

Discussion ensued regarding municipal experience and Alaska experience.

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

Motion carried.

Mayor Cushing asked that the questionnaire be reviewed by City Attorney Tans prior to distribution.

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

Motion carried.

Council was reminded to get their list of goals for the Manager applicant’s information to the Personnel Officer by December 16, 2002.

It was reiterated that the time line is included in the substitute memorandum.

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

Motion carried.

NEW BUSINESS

A. Memorandum 02-65, from Councilmember Ladd, Re: Communication with KPC/UAA.

Recommendation for Action by City Council:

1. Determine if the transfer, sale, exchange, or some combination thereof of City Hall and property is in the short or long term best interests of the City, and if so

2. Direct the Mayor to forward the attached notification letter of correspondence to the University stating that the City of Homer is willing to entertain a proposal for the transfer, sale, exchange or some combination thereof for City Hall and property.

Attached letter: December 9, 2002

Carol Schwartz, Director

Kachemak Bay Branch of Kenai Peninsula College

533 E. Pioneer Avenue

Homer, Alaska 99603

Dear Carol,

On behalf of the Homer City Council, I want to thank you for meeting with council members at the November 25, 2002 Council Committee of the Whole.

At this time the City Council is willing to entertain a proposal and enter into discussion with University staff the possible transfer, sale, exchange, or some combination thereof of City Hall and property.

KPC provides a wonderful service to the City of Homer and as always, the City of Homer is more than willing to work closely with the University to attain mutual goals.

Sincerely,

Jack Cushing, Mayor

City of Homer

LADD/STARK - MOVED THAT WE APPROVE THE RECOMMENDATION OF MEMORANDUM 02-65.

Council discussed the future space needs for City Hall and that this might be an opportunity to work with the university in that process. It is obvious that sooner or later the City is going to out grow the current City Hall and it may not be efficient to expand the current City Hall. Having a satellite office was mentioned, with concern regarding efficiency. It was noted that the timing is exquisite since the university architect is getting to the point that he needs to know, soon, if the City would entertain the idea of trading City Hall. If the City waits too long it will be too late, because the university will be far enough along in their plans that it will be a dead issue. The City does have another building to move into, the Old Intermediate School. It was noted that the two connexes^[1] adjacent to City Hall are storage units and offices have been moved around in City Hall during the last year to try and accommodate the size of the departments, which is another indicator that the City is out growing the building. The letter would not bind the City and would keep the door open. The City Manager had sent out a memo to the Mayor and Council depicting the value of the 4.7 acres is valued at about $175,000.00 by the borough and City Hall is valued at about $640,000.00 by the borough.

Finance Director Baugh responded to Mayoral inquiry that the building cost about $1.2 million, some remodeling was done and this was paid off this last March. The insurance company says that the building is valued at about $1.2 million for replacement.

Mayor Cushing advised the Council that he got the word to Joe Bettle, Vice President in charge of Finance out of the Fairbanks University Office, that the Council would be deliberating on this issue tonight. He further advised that he had discussed this matter with Gary Turner, Kenai Peninsula College Director, during the EDD Outlook Forum. He emphasized that if the Council is series about this then, his opinion is that they should get all the involved parties together and let The “non binding” letter will be modified by the Mayor and copied to Gary Turner, UAA officials that met with City Manager Drathman etcetera. It was emphasized several times that this action is not binding upon the City of Homer or the City Council.

VOTE: YES: NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

B . Consent Agenda Item E. Memorandum 02-66, from City Manager, Re: Lease Approval - Various Tenants of Lots 9, 10 and 11, City of Homer Industrial No. 3. Fiscal Note: Revenue 400.4650.600. Recommend approval.

Leases are:

Deep Creek Packing Inc. for premises indicated in the lease from December 1, 2002 through November 30, 2003 for the rent of $1,000.00 per month, plus tax.

Steve Zimmerman dba Desperate Marine for premises indicated in the lease from December 1, 2002 to November 30, 2003 for the rent of $375.00 perm month, plus tax.

Dana F. Besecker, Inc. for premises indicated in the lease from December 1, 2002 through November 30, 2003 for the rent of $550.00 per month, plus tax.

William Tener dba South Central Radar and Communication for premises indicated in the lease from December 1, 2002 to November 30, 2003 for the rent of $1,158.00 per month, plus tax.

The Auction Block, for premises indicated in the lease from December 1, 2002 to November 30, 2003 for the rent of $150.00 per month, plus tax.

Recommendation: The City Manager be authorized to execute the appropriate leases and license referred to in this Memorandum.

Main motion is on the floor as stated under Consent Agenda.

Council discussed the leases, charge per square foot and comparisons with other leases on the Spit.

Finance Director Baugh advised that most of the leases are in the $0.55 to $0.58 per square foot range. Specifically mentioned was the Auction Block, which is $0.56 per square foot.

FENSKE/STARK - MOVED TO POSTPONED.

Motion to postpone was not recognized.

Council mentioned the outside storage issues and asked for clarification regarding those items stored on the lots 9-11.

Administrative Assistant Livingston advised that Mr. McGee is supposed to have everything moved.

City Attorney Tans interjected that Mr. McGee claims to have moved everything that belongs to him.

The absence of Exhibit A. being attached to the leases was noted by the Council as being a “big deal”.

Councilmember Stark called for the question and there were no objections.

VOTE: YES: NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

RESOLUTIONS

A. Resolution 02-80, Of the City Council of the City of Homer, Alaska Amending the City of Homer Fee Schedule Regarding the Sewer and Water Rates. City Manager.

KRANICH/LADD MOVED FOR THE ADOPTION OF THE RESOLUTION 02-80.

Councilmember Kranich noted that this falls along with the budget and is a continuation of the equalization of the rates between uptown and the Spit.

Sewer Rates for 2003 are as follows:

All sewer utility services shall be billed according to the following schedule. This schedule is for monthly sewer services and is in addition to any charges for connecting or disconnecting the service, installation of the service or any assessment of the improvements.

Commodity rate per thousand gallons of water ~~$6.03~~ $6.63

Monthly Customer Charge ~~$3.69~~ $3.68

General Monthly Service Charge and Spit Service Charge by meter size.

Meter size General Spit

Service Charge Service Charge

~~5/8 $12.72 $46.19~~

5/8 $15.12 $28.80

~~3/4 19.08 69.29~~

3/4 $22.69 $43.21

~~1 $31.80 $115.48~~

1 $37.81 $72.01

~~1 1/2 $63.60 $230.96~~

1 1/2 $75.62 $144.02

~~2 $101.75 $369.53~~

2 $120.99 $230.44

~~3 $222.59 $808.36~~

3 $264.66 $504.09

~~4 $400.66 $1455.04~~

4 $476.39 $907.35

~~6 $890.35 $3233.43~~

6 $1,058.63 $2,016.34

Sewer System Residential or Residential Equivalent Dischargers Who are not Water System Users. Sewer system dischargers who are not water system users shall be charged at the rate of ~~$37.50~~ $46.35 (variable rate is ~~$21.09~~ $23.21) based on 3,500 gallons per month plus general service charge of ~~$12.72~~ $15.12 plus monthly customer charge of ~~$3.69~~ $3.68 per month. The City reserves the right to adjust this rate based on the characteristics of the service for non-residential or non-residential equivalent users. Customers who receive septage service shall be charged an additional ~~$5.02~~ $4.34 per month.

Sewer System Dischargers Who are Members of Kachemak City LID. Kachemak City Local Improvement District (LID) members have contributed to the initial cost of the sewer treatment plant and the collection system. Kachemak City LID dischargers connected within the LID and the City of Homer shall bill Kachemak City in one lump sum at the rate of ~~$38.33~~ $42.67 (variable rate ~~$21.09~~ $23.21) based on 3,500 gallons per month plus general service charge ~~$12.72~~ $15.12 plus septage cost ~~$5.02~~ $4.34 per month for each residential or residential equivalent discharger. Kachemak City shall be responsible for payment to the City of Homer.

Seasonal Sewer Meter fee is $121.10.

Water Rates for 2003 are as follows:

All water utility services shall be billed according to the following schedule. This schedule is for monthly water services and is in addition to any charges for connecting or disconnecting the service, installation of the service or any assessment of the improvements.

Commodity rate per thousand gallons of water $4.31

Monthly Customer Charge ~~$5.93~~ $5.66

General Monthly Service Charge and Spit Service Charge by meter size.

Meter size General Spit

Service Charge Service Charge

~~5/8 $19.13 $70.93~~

5/8 $20.08 $33.13

~~3/4 $28.70 $106.40~~

3/4 $30.11 $49.70

~~1 $47.83 $177.33~~

1 $50.19 $82.83

~~1 1/2 $95.66 $354.66~~

1 1/2 $100.38 $165.67

~~2 $153.05 $567.46~~

2 $160.60 $265.07

~~3 $334.79 $1241.32~~

3 $351.32 $579.84

~~4 $602.63 $2234.38~~

4 $632.37 $1,043.71

~~6 $1339.17 $4965.29~~

6 $1,405.26 $2,319.35

When a customer uses more the 20,000 gallons per month the following services charges are:

Meter Size Excess Use Exceeds General Surcharge Spit Surcharge

~~5/8" 20,000 gal $28.70 $106.40~~

5/8" 20,000 gal $30.11 $49.70

~~5/8" 70,000 gal $47.83 $177.33~~

5/8" 70,000 gal $50.19 $82.83

~~3/4" 70,000 gal $47.83 $177.33~~

3/4" 70,000 gal $50.19 $82.83

Bulk water sales. A commodity charge of $4.31 1,000 gallons of water shall apply to bulk water sales provided by tanker truck or fire hydrant plus an additional surcharge of ~~$3.16~~ $3.48 per 1,000 gallons of water in order to offset debt service and capital replacement and customer service costs.

VOTE: NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

B. Resolution 02-81, Of the City Council of Homer, Alaska Revising Certain Portions of the Port and Harbor of Homer Terminal Tariff No. 600. City Manager.

LADD/KRANICH - MOVED FOR THE ADOPTION OF RESOLUTION 02-81 BY READING OF TITLE

KRANICH/YOURKOWSKI - MOVED TO AMEND 34.18B, ANNUAL MOORAGE FEE, FROM PROPOSED 29.28 TO $26.40.

Councilmember Kranich noted that this amendment falls inline with the budget document and reflects some of the shuffling done on funding in the enterprise fund.

Councilmember Yourkowski stated that he is glad that the Council recognized the inequities involved in the proposed rate hike.

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

Motion carried.

Port/Harbor Tariff rates as revised are as follows, the rest of the tariff not contained herein will remain as it is in the current Port/Harbor Tariff.

34.13 – Moorage in Harbor, Subsection 150, (a)Assignment of Moorage:

The Homer Port and Harbor is often congested and it is the policy of the City of Homer to provide for the maximum public use of available facilities. The harbormaster shall have discretion to implement that policy.

Mooring assignments to particular stalls on the City of Homer float system are made by the harbormaster and subject to charges named in Subrule 34.18 Subsection 200. Mooring assignments are made to a particular combination vessel and owner/operator, are not assignable by the owner/operator, and automatically expire upon sale or transfer of the vessel to another owner/operator, unless stall assignee places a newly acquired or replacement vessel of permitted size in the stall as per approved request made to Harbormaster and upon payment of the $25.00 fee to cover administrative costs of changing the boat in the reserved stall. A mooring assignment is not a lease or an exclusive right to occupy any particular stall. In order to maximize the public's use of existing facilities it is common for the Harbormaster to temporarily assign vessels to stalls normally used by another vessel when that vessel is out of the harbor. Individuals who have a reserved stall may request a change in reserved stall assignment by completing the Swap List Request Form and upon payment of the required $25.00 Swap List Fee. This fee is neither refundable nor creditable to the reserved stall holder or the reserved stall account. The Harbormaster shall place the reserved stall change request on the swap list on a first-come, first-served basis.

Rule 2002 2003

34.18b Annual Moorage Fee: ~~25.44~~ ~~29.28~~ 26.40

34.19 Dockage ~~1.35~~ 1.76

Cruise Ship Dockage ~~1.35~~ 1.76

Cruise Ship Service Charge ~~365.00~~ 375.00

34.20

Freight N.O.S. ~~5.25~~ 6.83

Poles,Logs,cants or cut ~~2.60~~ 3.38

Petroleum Products

Barrel ~~0.2593~~ 0.2852

Gallon ~~0.0062~~ 0.0069

Seafood/Fish Products ~~3.60~~ 3.70

Livestock ~~6.20~~ 8.06

Fowl, Crated ~~6.20~~ 8.06

Boats

Up to 20 Ft each ~~10.30~~ 13.39

Over 20 Ft per lineal ft ~~1.03~~ 1.34

34.21

Demurrage per sq ft ~~0.05~~ 0.06

34.22

Uplands Storage

Open area fishing gear ~~0.08~~ 0.10

Open area non-fishing gear ~~0.12~~ 0.14

Fenced Storage Yard ~~0.17~~ 0.20

34.23

Tidal Grids

0 - 59' ~~0.51~~ 0.68

60 - 80' ~~1.90~~ 1.95

81 - 100' ~~2.37~~ 2.44

101 - 120' ~~2.78~~ 2.86

121 - 140' ~~3.14~~ 3.23

34.25

Deep Water Dock Potable Water

Per Thousand Gallon ~~10.30~~ 30.00

Connect/Disconnect Scheduled~~78.00~~ 80.00

Connect/Disconnect Not Scheduled ~~103.00~~ 106.00

Electricity

Reserved Stall

Meter Availability Fee~~17.50~~ 18.00 Connect/Disconnect Fee~~21.00~~ 21.60

Transient Vessel

Meter Availability Fee~~21.00~~ 21.60

Connect/Disconnect Fee ~~21.00~~ 21.60

Non-Metered Power

Daily

110 Volt ~~8.25~~ 8.50

220 Volt ~~16.25~~ 16.75

208 Volt three phase~~36.50~~ 37.50

Monthly

110 Volt ~~121.25~~ 124.65

220 Volt ~~272.25~~ 279.90

Towing inside Harbor

1/2 Hour ~~52.00~~ 53.50

1 Hour ~~78.00~~ 80.25

Pumping Vessel

Elect Pump per day ~~31.50~~ 32.50

Gas Pump per hour (includes attendant)~~52.00~~53.50

City Personnel Labor

per hour ~~78.00~~ 80.00

per 1/2 hour ~~39.75~~ 40.00

Waste oil over 5 gal- per gal ~~2.10~~ 2.16

34.27

Search and Rescue per hour ~~78.00~~ 80.00

34.28 - BOAT LAUNCH RAMP FEES

Launch Ramp

Per day ~~10.00~~ 11.00

Season pass ~~100.00~~ 110.00

SUBSECTION 260

(b) CHARGES FOR USE OF PUBLIC LAUNCH RAMPS:

Vessels shall be charged ~~$10.00~~ $11.00 per day from the public launch ramps. (Reserved stall lessees exempt for the boat assigned to and registered to the stall only, not for other

boats owned by the same individual).

34.29

Beaches

vessels upto 50 ft per foot ~~1.05~~ 1.10

vessels over 50 ft per foot ~~1.05~~ 1.10

34.30

Fish Dock

vessels blocking cranes per hour 150.00

unattended vessels 150.00

Annual access ~~45.00~~ 46.00

Card Replacement Fee 10.00

Cold Storage Fee per month 300.00

Two consecutive Months275.00

Three consecutive Months 250.00

Ice bid storage 200.00

Crane usage per hour ~~60.00~~ 64.00

Ice per ton ~~99.00~~ 102.00

Seafood wharfage per ton ~~3.60~~ 3.70

Freight non seafood per ton ~~10.30~~ 12.40

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

Motion carried.

C. Resolution 02-82, Of the Homer City Council Repealing and Reenacting the City of Homer Personnel Regulations. City Manager.

Memorandum from Personnel as backup.

STARK/BECK - MOVED FOR THE ADOPTION OF RESOLUTION 02-82 BY READING OF TITLE.

KRANICH/LADD - MOVED TO POSTPONE ACTION OF RESOLUTION 02-82 UNTIL THE SECOND MEETING IN JANUARY. (January 27, 2003.)

Council stated that there is an awful lot of information to digest, a lot of changes have been made and he would like more time to review the document. There was a concurrence with Councilmembers Ladd and Beck that Personnel Officer Hobbs be asked to attend the Committee of the Whole meeting on January 13, 2003 as the first item on the agenda and, if needed, may be placed on the Committee of the Whole agenda for January 27, 2003.

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

Motion carried.

D. Consent Agenda Item D. Resolution 02-79, Of the City Council of Homer, Alaska Extending the City Hall, Parks and Cemeteries Maintenance Contract with B & C Lawn Care for the Contract Term of May 14 to September 1, 2003 in the Amount of $15,020.00 and Authorizing the City Manager to Execute the Contract Extension. City Manager. Fiscal Note: 100.5210.149, 175 and 178 professional services for City Hall, parks and cemeteries maintenance. Recommend adoption.

STARK/BECK - MOVED FOR THE ADOPTION OF RESOLUTION 02-79 BY READING OF TITLE.

Council inquired if it were normal to have the notice to proceed and the contract issued prior to Council approval and a letter back from the contract thanking the City for renewing the contract. Council asked for clarification.

Public Works Director Meyer advised that the City does contract for various services through out the year and one of which is the lawn care. Generally, whether pumping tanks in Kachemak City or taking care of the lawn the City will competitively put out an RFP and look for competitive prices to complete the services being sought. He stated that, in this particular case, three years ago this contract was competitively bid and the contract called for three years of providing that service at the price determined. The procurement rule allows for extensions of these contracts and part of the reason why the contract is already signed is, because he came to the City Manager and that it was his impression that the City Manager had the ability to do a one year extension on an existing contract. For whatever reason, it was determined that City Council to weigh in. He

informed the Council that he was not aware that the contract had been delivered to B and C Lawn Care. It is not unusual for the City to extend the contract one year past the normal contract period to take advantage of the price that has been locked in. He reported that Public Works does anticipate, before the winter is over, to put this work back out to bid.

VOTE: YES: NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

COMMENTS OF THE AUDIENCE

Julie Clymer, Interim Director of the Pratt Museum, thanked the Council and staff for all their tremendous efforts and hard work on the budget process. She acknowledged how time consuming and difficult the process. She also thanked and seconded the eloquent comments made by the other representatives from non profits in this community that spoke earlier this evening. She voiced admiration and thanks for the commitment in Council’s choices tonight to the past, the present and the future. She stated that by supporting the Pratt Museum as a line item the Council honors a long history of a unique relationship between the City and the Museum and that Council’s continued support of the other community local non profits recognizes the tremendous value and services that these organizations provide to the community. Ms. Clymer

noted that by reaching deep into their pockets and ear marking the $20,000.00 for the endowment through the Homer Foundation, the Council demonstrates a long term vision that will benefit many generations down the road. She thanked the Council for their balanced approach and their decisions this evening.

Kevin Hogan thanked the Council for their work on the budget, a well put together document by the administration, noting that there were some tough decisions and that it seemed a little less controversial than usual. He wondered what kind of problem the Council is trying to address with regard to the Ordinance on box stores. (Ordinance 02-53(S)(A).) He commented on the recent community survey and that perhaps the Council should, as an addendum to the survey, stick a sign up right by the Kasilof junction that says, “Honk if you are heading south after spending your money in Kenai, Anchorage and Soldotna.”, to see how many honks there are as people to by. He asked if there is any big pending store coming into town? Mr. Hogan emphasized that there are things the City should be addressing, such as the “Try Again Ship Wreck Museum” on the Spit that is an eye sore. He voiced his concern with people coming into town on Cruise Ships and what they are going to want to look at when they come off the Cruise Ships. He asked if the Council thought these tourists were going to want to look at the mess on the Spit or to a store that offers variety and value, not to mention the revenues that sales tax generates. Mr. Hogan noted that “we” are sending a huge amount of revenue up the road. For the last five years, he advised, that he has made it a point whenever he is in a store in Anchorage or Soldotna that he counts the people from Homer and has yet to go into a store without running into somebody from Homer, even if it is midnight or he is just running in for a pack of cigarettes. He urged the Council to be cautious about the message they are sending and couch what they are saying in a positive tone. He voiced agreement with planned and accommodated development and that obstructionism is not planning. He commented on the Port Tariff that since he started his business five or six years ago, the ice rates have risen something like 40% and the crane rate has risen 90%. He asked if the revenues have gone up, if the port is getting ahead? Mr. Hogan said that he does not see that happening, especially on the ice rates. He apprised the Council that he

makes it a point to obtain his ice elsewhere, because he can do it at a better cost and that it is a business decision. He pointed out that for anyone who is in business, if that person wants to increase their revenues they don’t increase their prices they lower them and increase the volume. He noted that someone has made a major investment in an ice plant that competes with the City ice plant so the City is going to be doing less volume and the cost per unit is going to be higher. He encouraged the Council to keep this in mind when they are making these decisions. What is going to increase the revenue to the Port? Sometimes, it is not raising the rates. The City Council needs to run things like a business. He voiced agreement that the Spit is a mess and that “they” have been working around other people’s junk for years and years and years. Pretty much everyone who is a tenant on the Spit knows whose stuff is where and are trying to all work together and around the problems they have been handed. Mr. Hogan informed the Council that he has a crew coming in tomorrow and a guy coming down from Kenai to remove a unit that belongs to the City that is in everybody’s way. He stated that if the City wants to take care of it, it is their stuff, if they want to pay for it fine, he will get out of the way and stop. He emphasized that the City wants to take over the management of “that” place, yet nothing has been done and that he has called the City a number of times. He reported that the plywood boarding that the City put up keeps falling down on his office, which is a safety factor, and that he keeps calling the City and voicing his concern that someone is going to get hurt. He emphasized that the City wanted to take this over “so bad” and now has the responsibility of maintenance and up keep. He stated that part of the problem is that the ground is so soft that people start putting their storage in places where they know the fork lifts are not going to sink and that “they” spend a lot

of time pulling the fork lifts out of the sand. He commented on about the City not putting any binder on the ground and that the tenants did this at their own expense when McGee was the property manager, but the City has not done anything and before there were, at least, some things

going on. He reiterated that tomorrow he is going to be removing some of the stuff at his own expense just so that it is finally going to happen.

Mayor Cushing inquired as to what City property Mr. Hogan is going to be moving and if it was something that the City inherited when it took over the property management.

Mr. Hogan responded that it is something the City inherited, an old plate freezer on the side of the flat building, adding that supposedly “that” house is going to move sometime next week. He is removing this so they can utilize the land that they are paying for. Mr. Hogan clarified that the plat freezer was built into the building. He stated that he did clear this with Public Works. He further stated that since the City took over the property he knows of one full pallet of oil buckets that has shown up, not left by McGee or any of the tenants, adding that there is no gate or security and that stuff keeps showing up all the time and the tenants do not know who it belongs to.

Mayor Cushing stated that this is to be considered as notification of abandoned hazardous waste and that this will be reported. He told Mr. Hogan to consider this a report to the state.

Mr. Hogan inquired as to who is supposed to take care of this.

Mayor Cushing responded that it will be taken care of.

COMMENTS OF THE CITY ATTORNEY

City Attorney Tans thanked the Council and voiced appreciation for the renewal of his contract.

Mayor Cushing thanked Attorney Tans for his work, that “they” will make his life easy this year and will get him in on all their ordinances instead of everything else.

COMMENTS OF THE CITY CLERK

City Clerk Calhoun thanked the Council for renewing the City Attorney’s Contract and for all of their work tonight.

COMMENTS OF THE CITY MANAGER

Acting City Manager Robl advised that the library site selection report should be finished and in the Council boxes tomorrow and probably available to the public as well. He relayed that during one of the breaks Councilmember Stark asked him for the Manager’s Budget report, a preface to the budget each year, and that he will check on that report.

Finance Director Baugh interjected that he is still writing the report and that a lot of what goes into the report is based on Council action tonight.

Acting City Manager Robl wished all happy holidays.

COMMENTS OF THE MAYOR

Mayor Cushing responded to the comments that the City has done nothing, emphasized that the City does a lot of things when accused of doing nothing. He reported that the previous tenant of

“that” property, one of the seafood processing people, said that they had to move out because they could not get the things done to keep their business alive in “there”, adding that he did not think the City was going to be all that bad of a landlord. He commented that if “we” have to put some binder in, it could just take compaction and that it could take getting a lot of stuff out there before “we” can get the compactors in there. He stated that if it does not bind up naturally with just a compaction effort to let “us” know, “we” can find some binder to get in that soil.

He reported that the Kenai Peninsula Economic Development District Forum was held at the Kenai Community College last Friday, that he was there Friday; that Councilmember Stark, Administrative Assistant Anne Marie Holen, Paul Seaton and Millie Martin were there Friday and Saturday, and that Homer Chamber of Commerce Executive Director Derotha Ferraro was there for a while on Friday. Mayor Cushing pointed out that statistics from Homer for 2002 brought the whole Peninsula up statewide regarding economic factors. He reported:

That although the City of Homer does not have the highest number of square footage of retail stores it is doing one of the highest per square foot gross sales and has the most number of retail stores.

Homer’s commercial fishing is astronomical and employs about half of that industry on the peninsula, about one third of the salmon and two thirds of the halibut.

Although timber is way down compared to where it was, Homer is still leading the Peninsula.

This information is out of the 2002 Situation and Prospects by the Kenai Peninsula Borough. The Mayor advised that the Kenai High students videoed the forum and believes they put it on the internet.

Mayor Cushing read a proclamation he gave to Laurentia Chamblee and that he would like to recognize Hobo Jim for his 50^th birthday for what he has provided to the community over the years statewide and has certainly been a voice of the community.

COMMENTS OF THE CITY COUNCIL

Councilmember Stark stated that the Mayor did a marvelous job at the Economic Development District Forum and that he was pleased that the Mayor was very positive, portrayed the City in a positive light and was a real asset to the community at the function. He voiced appreciation for Kevin Hogan’s comments, adding that these were very helpful. He voiced his feelings regarding the 30,000 square foot ordinance (moratorium) that there are a lot of things that he would like to see; beautification, set backs, cleaning up this community, and that after speaking with the Planning Director, believes these will come to fruition. He relayed that one of the things that came up at the Economic Development Forum was that of attracting tourism and that one of the ways to do that is to make the community a better place for the citizens to live in, which will make it more attractive to tourists. He voiced agreement with Kevin Hogan’s comment about the port area, which is less than attractive to people traversing the area and this is where the cruise ships come in, adding that there will be about fifteen cruise ships this coming year. He voiced his opinion that the City needs to do something, a lot of things to make that area more attractive. Mr. Stark commented that the other point on the 30,000 square foot ordinance is something wherein there are mixed emotions, citing the example of when Eagle opened ten or twelve years ago and a lot of Homer businesses disappeared. He commented that this is part of the life and growth of

economic activity in a community, is something to be careful about and to make the activities in this town a blessing and a plus point for those who live here and visit here.

Councilmember Kranich voiced agreement with Councilmember Stark regarding the moratorium on large structures over 30,000 square feet and his hope that by passing this it has not sent up a real negative message that Homer is opposed to larger retail businesses coming in. Homer does want to have opportunity to have “ducks in a row” so that when “they” do come in “they” are a positive point in our community in, virtually, all respects. He commented about the parking lot a Lowe’s in Anchorage being difficult with one access. He addressed Kevin Hogan’s comments about the price of ice increasing, relayed some comments from fishermen that Homer’s ice is not of the quality that other ports have and is not as cold as other ice and does not last as long. He acknowledge that every degree colder is significant bucks to accomplish. He agreed that the City maybe has not done as much as it should have on the leased property on the Spit and that property management is more than just having a file full of contracts and has to be monitored on a regular basis. The seafood industry has a lot of unattended “left behinds”, abandoned equipment and machinery, noting that this is not a problem unique to Homer. Tenants need to let landlords know so that everyone is working together to try to make the area better.

Councilmember Ladd commented that he is pleased with the City Manager application process established tonight, that he is looking forward to working on the hiring committee and that there is room for two folks from the public, one chamber and one non profit. He thanked Mike Hawfield for his work at the Pratt Museum, for everything he has done for the community, that he is sorry to see Mr. Hawfield leaving. Mr. Ladd voiced his opinion that Mr. Hawfield certainly knows his business, is a wonderful manager, a good historian and will be missed. He looks forward to the response the City might get back from the university on the letter. He thanked Representative elect Seaton for coming tonight and suggested another methodology for monies

to support the Library, adding that the school district is not always the easiest partner. He agreed that this source of funding needs to be explored. He asked the Acting City Manager to find a date the surveys are expected back, the information collated and back to the Council. Mr. Ladd noted that since two rounds of the survey have gone out the information should be getting back to the Council and that he looks forward to seeing some of the questions and responses. One of the questions was asking the public about large type stores in Homer. He emphasized that he sees the large store moratorium, not as a block against large stores, but as a step towards preparing and ensuring that the impact to the community is in conjunction with long term goals for the community. He thanked everyone for a good meeting.

Councilmember Fenske responded to the question that Mr. Hogan brought up about the condition of the site “out there” and that it is not often, in the past, that Mr. Hogan has come in and has been on the same page agreeing on several different things. Mr. Fenske stated that he and Mr. Hogan agree on several things this evening, except for possibly the condition of the site whether the ground is soft of hard. Mr. Fenske stated that the City is in the business of leasing the site and what the lease holder does with the site is really up to the lease holder. He encouraged the lease holder to fix the soft spots, adding that he does not like to see Mr. Hogan’s equipment get stuck on his lease hold. Mr. Fenske commented about a statement made that the Council reached into their pockets and managed to come up with a variety of non profit interests including the Pratt Museum. He pointed out to the Julia Clymer that this money comes from the community, adding that this is a point that is sometimes missed that the Council is not spending their money it is the community’s money.

Councilmember Beck commented on the big box store ordinance and that this is to ensure that the community is going to get what it needs and that the Council is going to be able to preserve the small town feel while providing big town amenities. She voiced her opinion that the way the Council is going about this is simply something they decided to do to ensure that this happens and does not believe any of the Council is “anti economic endeavors”. She thanked those non profit representatives who spoke to the Council quite eloquently and their sentiments were very heart felt and that it was a struggle for the Council to figure out that balance. She recommended that the non profit allocation be on the agenda early in the upcoming year and give it some attention that it deserves so that the Council is not dealing with it right at budget time. Ms. Beck stated that she would like to come up with a little more pro active plan for dealing with the non profits in the community.

Councilmember Stark requested that that this memorandum from the City Manager dated November 21st, with carbon copies to KBBI, the Tribune and the News, be copied to all the news media and that all the news media be advised of newsworthy items and that this include KGTL.

Mayor Cushing thanked a lot of people for hanging out with the Council late in the evening; news media, staff, Commissioners and public. He stated that it was good to hear the comments regarding the budget and thanked Mr. Hogan for his concerns regarding the appearance of the Spit, which is a concern that a lot of the Council shares.

ADJOURNMENT

There being no further business to come before the Council the meeting was adjourned at 11:54 p.m. The next Regular Meeting is scheduled for January 13, 2003 at 7:30 p.m. The Committee of

the Whole is scheduled to meet at 4:00 p.m. on January 13, 2003. These meetings will 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] City Clerk note: One connex is the centralized storage facility that has always been separate.