Session 99-23, a Regular Meeting of the Homer City Council was called to order at 7:32 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.

PRESENT: COUNCILMEMBERS: CUE, FENSKE, KRANICH, MARQUARDT, WELLES, YOURKOWSKI .

STAFF: CITY MANAGER DRATHMAN

CITY CLERK CALHOUN

FINANCE DIRECTOR BAUGH

ACCOUNTING SUPERVISOR MACK

INVESTIGATIONS SERGEANT ROSENCRANS

PORT DIRECTOR/HARBORMASTER ABBOTT

PUBLIC WORKS DIRECTOR MEYER

AGENDA APPROVAL

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

The agenda was approved by consensus of the Council, with no objection to the removal of Item 5.G. to be placed on the January 10, 2000 Regular Meeting agenda under New Business.

PUBLIC COMMENTS UPON MATTERS ALREADY ON THE AGENDA

Dave Vanderbrink urged the Council to upgrade the Council Chamber's sound system so that people in the back of the room can hear what is being worked on and what is going on. He noted his long time interest in the Spit, dependence on it and involvement in it since before some of the Councilmembers were born. He stated that he does not like to come and appear before the Council with grips of any kind. However, the Terminal Use Permit attached to Memorandum 99-222 has a few minor items that need some ironing: Section 13 non waiver, makes it possible to enforce selectively; Section 24, insurance requirements, makes the permittee responsible whether the permittee is there, at the harbor, or not as well as all permittees being liable for the same event; Section 25, fire control equipment, this does not specify who owns the equipment; and Section 8, compensation, the 10% surcharge desired by the City. Mr. Vanderbrink stated that his main objection is to Section 8, compensation, and that it appears that this is designed to aid, almost as a subsidy, those who can get by with the least labor costs and a penalty on those who have higher labor costs. He maintained that this 10% surcharge is extremely discriminatory and could reduce wages to the lowest wages. He inquired what business the City has in someone else's payroll? What the City needs to do is decide what sort of cost needs to be levied, levy it on an hourly basis or in the wharfage or in some other manner and make it a level playing field for the employers out there. He urged the Council to send the TUP back to the Port/Harbor Commission, who seemed totally disinterested, and tell them to do something this time. He voiced a hope that his input, for once, would do some good.

Don Bunker stated that he does not have a 99603 zip code, but still leases a slip in the Small Boat Harbor and has for the past eleven years. He voiced an appreciation for the many services provided by the harbor staff/personnel, including their professional and courteous attitude and the excellent security. He commended the City on conducting an extensive financial audit of the income and expenses related to the port and harbor and the spit area. The Kenai Peninsula Borough reduced the property tax on boats to encourage boat owners to leave their vessels within the taxing area. It appears that the City of Homer was quick to pick up the difference by proposing an increase in moorage rates, but that might just be coincidental. He stated that he does not object if this rate increase is necessary and believes that all user groups should pay their own way. He said that he had two areas of concern in the proposed tariff. First the moorage fee increase was to help absorb the cost of providing potable water, latrines, garbage and fish outfall removal on the Spit. According to Councilmember Welles comments this is approximately 30% of services to be charged to moorage fees. A large number of commercial fishing vessels migrate to other ports before summer and return after, thereby not benefitting or using most of these services. Therefore, there is one user group not paying their fair share. Every year there are thousands of vehicles parking on the Spit, using amenities and not paying one cent. The only revenue generated to the City is a portion of the sales tax if something is purchased. He asked the Council to study the ramifications of implementing a parking fee similar to camping fees. In Seward the parking season starts May 1st and ends September 30; boat owners that pay moorage fees pay an annual parking fee of $25; the daily fees are $5 and administration and enforcement is contracted privately. If Homer did this, the harbor employee's time would be used moving vessels, walking the docks, observing vessels that might be shipping water and the bilge pumps not dewatering and etcetera, not walking parking lots marking tires. The City would receive a percent of the total fees. Secondly the ice plant does not have a accurate method of measuring the pounds of ice sold. It is unethical and contrary to state regulation to commence commercially to dispense a product and not have an a certifiable method of measurement. He noted his experience with being shorted on ice or getting more than a ton. Ice can only be ordered by the ton and at $90 a ton he stated that he feels he is getting ripped off. He admonished the City to consider implementing parking fees and an accurate and fair method of measuring ice. He voiced appreciation of the Homer Administration, City Council, the Port/Harbor Advisory Board and personnel and for being allowed to comment.

Mary Griswold offered a few thoughts on the harbor moorage rates and the load and launch ramp fees in the proposed tariff revisions in Resolution 99-118. She voiced support of user fees especially for services such as harbor moorage, that primarily benefits a limited number of people in the community many of whom live outside the City's tax base. The Small Boat Harbor should be supported by the commercial and recreational boat owners who use it. That it is also a tourist attraction is a fringe benefit for Spit businesses and the rest of the local economy. She hoped that efforts will be made to keep expenses down so that rates don't get so high that she cannot afford to enjoy her boat. She stated that she prefers less convenience and more affordable rates. User fees should cover all new services in the harbor such as electricity and, perhaps, even water on the new service float. She favored the new "per foot rate" for all harbor moorage, which is more reasonable. Rather than differential rates based on convenient access to power and water, which may sound more fair, but implementing such a rate structure would prove impractical and unfair. The per foot charge is simple and reasonable. Everyone has a place to stay and those who take up more space, pay more. People who use electricity pay extra for it and water is a available to everyone for free, although some do have more convenient access to it. She noted the location of power and water in the Small Boat Harbor. Differential moorage rates would penalize the owners of larger boats, who are already paying higher rates in addition to meter access and user fees for the power used. Regarding the launch ramp fees she voiced a strong favor for a bigger discount for the season pass instead of $100, at the $75 level and then evaluate this in one year to see if the $100 fee is necessary.

Scott Francis, North Star Terminal and Stevedoring Company, noted that North Star has been a Terminal Use Permit holder since 1989. Since that time they have provided stevedoring services and heavy lift equipment to almost every customer at the Homer Port. He addressed the new language in the Terminal Use Permit, agreeing that the permit needs modification and is open for interpretation. Recently the permit has been applied differently than in the past and needs to be clarified and improved. He stated that North Star had previously requested to participate in the development of new permit language and was surprised to find out the new permit language had already been written and was coming before the Council tonight. It is important that Council get the input of permit holders and customers at the port. He encouraged the Council to send the permit back to committee and allow permit users and the customers to participate in the development of a permit that will encourage work to the port rather than chasing work away from Homer. Mr. Francis stated that Homer is the only port that he is aware of that has a permit fee and no one else has a permit fee of 10%. North Star is the only Homer Port user that is paying this permit fee. Customers need to be attracted to the Homer Port, not chased away with added fees. Other ports have tried to add fees, such as Whitier, which added fees to the cruise ships. The next season the cruise ships did not go to Whitier. Juneau is doing a similar fee increase, as Whitier did, and the impact has not been realized.

Charles Davis commented on Memorandum 99-217, Bishop's Beach Park Master Plan, that it looks good. He suggested that more parking is needed and the grassy area as well as all the undeveloped area needs to be made into parking. Proper signage is needed and if he has to go to court to get it he will. He suggested that Council do their job and take care of business the citizen's way and not their way.

Tammy Jones commented on the Terminal Use Permit, Memorandum 99-222, and that she recently wrote a letter expressing some of concerns over the current TUP along with other questions of which some of these have been answered. She urged the Council to approve the proposed changes if a decision must be made tonight. For the last year it has been discussed that a new TUP must be written. She advised that she has stated repeatedly to different folks within the City Offices, Council and Committees, that there seems to be a great deal of potential income that is lost to the City along with other areas that are unclear. Some of her questions are: Are there different TUPS and if so why? Who is required to have a TUP? Are all the people and businesses working, loading, unloading, tying up, or letting go ships and/or barges on the Main Dock and Deep Water Dock required to have a TUP? Is everyone paying in the same manner? The amount that is to be paid and 10% of what, should be applied to all TUP holders. Is the amount of 10% being paid to the City for all work being done, for all employees of all TUP holders? Is the 10% of wages, or of labor costs or of charge out amounts? The differences in these can result in an additional or lost income to the City. Should someone loading his or her own product be charged? Mr. Vanderbrink spoke of a flat rate and she stated that she would like to see this also, or perhaps there should be a fee per hour charge at the dock. Who within the City issues the TUPs and from what office? There does not really seem to be a standard TUP in place. Each person is required to pay the same, but there are different interpretations. She stated that one year ago she asked if a new TUP would be written in order to clear up some of these points. In the meantime new TUPs have been issued and the City has contacted other companies to come to Homer, stating that they can get their own TUPs. She urged the Council to approve the changes in the new TUP as written and add the Harbormaster's recommendation that addresses the line handling and, while it may seem redundant in Section 8. a. on page 4, along with the recommended changes that the Council consider adding after the words "to load or off load cargo", the wording that will include "line handling, tie up and let go". As this may be a potential loss of income to the City as well.

RECONSIDERATION

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. Homer City Council regular meeting unapproved minutes of November 22, 1999. Recommend approval.

B. Homer City Council special meeting unapproved minutes of November 29, 1999. Recommend approval.

C. Resolution 99-112, Of the City Council of Homer, Alaska Authorizing the City Manager to Purchase the Resurfacing for the Completion of the Parking Lot at Karen Hornaday Park Described in Purchase Order 50508 in the Total Amount of $10,784.00 to Builder's Services, Inc. Public Works. City Manager. Fiscal Note: Money budgeted in Acct. 100.5903.175, Parks Recreation and Cemetery.

Memorandum from Public Works as backup. Recommend adoption.

D. Memorandum 99-216, from City Clerk, Re: Liquor License Renewal for Salty Dawg. Recommend approval and non objection.

E. Resolution 99-113, Of the Homer City Council Accepting the Department of Environmental Conservation Grant for the Bypass Sewer/Beluga and Bay Avenue Lift Station Upgrade (#40901) and Authorizing the City Manager to Sign the Appropriate Documents. Admin. Public Works. Fiscal Note: Local share $146,146 from Sewer Reserve Funds, Revenue from the State of $348,124.

Memorandum from Public Works as backup. Recommend adoption.

F. Resolution 99-114, Of the City Council of Homer, Alaska Accepting $10,000 from the ADOT/PF for Performing Level 1, 2, & 3 Commercial Vehicle Inspections and Authorizing the City Manager to Execute the Standard Agreement Form.

Memorandum from HPD as backup. Recommend adoption.

Removed under agenda approval. G. Memorandum 99-217, through the City Manager, Re: Bishop's Beach Park Master Plan. Recommend approval.

H. Memorandum 99-218, from City Clerk, Re: Vacation of Myhill Road. Recommend non objection.

I. Memorandum 99-219, from Councilmember Fenske, Re: Reimbursement request. Recommend approval. Fiscal Note: Total Reimbursement is $126.79 from Acct. 100.5236.100.

J. Resolution 99-117, Of the City Council of Homer, Alaska, Establishing the 2000 Regular Meeting Schedule for the City Council, Economic Development Commission, Library Advisory Board, Parks & Recreation Commission, Planning Commission and the Port/Harbor Commission. City Clerk. Recommend adoption.

K. Memorandum 99-220, from Mayor, Re: Soil & Water Conservation District, Grant Possibility. Recommend approval.

L. RESOLUTION 99-115, Requesting that the City Manager Develop, on or Before Feb. 15, 2000, a Work Plan and Time Line for Annexing to the City of Homer's Boundaries Outlying Areas that are Benefitting from Services Provided by the City of Homer, Particularly Sewer and Water. Yourkowski. Recommend adoption.

M. Memorandum 99-221, from Councilmember Yourkowski, Re: Non Profits and the Homer Foundation. Recommend approval

N. Resolution 99-116, Of the City Council of Homer, Alaska Amending the Fee Schedule to Set a Cap on Credit Card Payments. Yourkowski. City Manager. Recommend adoption. Cap is $500.00.

FENSKE/WELLES - MOVED FOR THE APPROVAL OF THE RECOMMENDATIONS OF THE CONSENT AGENDA.

FENSKE/ - REQUESTED ITEM F. RESOLUTION 99-114 BE PLACED UNDER RESOLUTIONS.

KRANICH/ - REQUESTED THAT ITEMS L. & N. BE PLACED UNDER RESOLUTIONS.

VOTE:(Items A. - E. & G. - K & M.) YES: FENSKE, WELLES, YOURKOWSKI, MARQUARDT, KRANICH, CUE.

Motion carried.

VISITORS

ANNOUNCEMENTS/PRESENTATIONS/BOROUGH REPORT/COMMISSION REPORTS

PUBLIC HEARINGS.

A. Ordinance 99-21, Of the City Council of Homer Appropriating Funds for the Calendar Year 2000 for the General Fund, the Water Fund, the Sewer Fund, the Port/Harbor Fund, Debt Funds, Capital Reserve Funds (Conditional Expenditures). City Manager. Finance. (First Reading 11/22/99, Public Hearing 12/13/99, Second Reading 12/13/99.)

Rebecca Paul thanked the City of Homer for supporting Head Start, of course with the generosity of Brother Asaiah Bates. She stated that he paved the way for the City of Homer to come to Head Start with other contributions. Mr. Bates has since cleaned out his freezer and provided Head Start with a lot of food. On Christmas Eve the inter denominational churches will take up an offering for Head Start. She presented Asaiah Bates with a bowl donated by Kachemak Bay Ceramics that says, "With lots of love from Homer Head Start to Brother Asaiah."

Karen Willows; an RN, Acute Care, speciality is forensics, and a SANE Nurse; noted the importance of maintaining Homer's Police Force and urged the Council to fund the police officer position. She quoted statistics, the need for enforcement and police assistance in the Homer area. She voiced her alarm that the police officer turn over in Homer has been so high over the past three or four years, a rate of about 33% each year. Ms. Willow noted the professionalism of the Homer Police Force and that they are well trained and that keeping this type of an officer is invaluable. Right now law enforcement officers are at a premium and officers can get $3 or $4 more an hour just by going up the road. People usually don't think that much about law enforcement until they have a personal need to interact with them. She stated that originally she was going to come to encourage the Council to raise Police Officer's salaries, but now finds that she is here to encourage the Council to be sure and not cut two whole positions. She commented that the City authorized eleven officers for January 1999, there are nine proposed for 2000 and right now there are about four nights a week when no officers is on duty. She voiced concern that the proposed projected savings of cutting quality trained law enforcement will be lost, not only by the over time budget, but also in a high community loss as well. An excellent high quality police force does not just happen. There are many community residents that are more than grateful that in times of over stretching of the State Troopers resources the Homer Police Department has gone outside the City limits to assist or help them or their children. Ms. Willows concluded that there is nothing to amputate without seriously detracting from the Homer Police Department's ability to adequately function for our community.

Michael Hawfield thanked everyone for the incredible amount of work that has been done on the budget. He asked for Council's help and that they find a way to support to the greatest extent that they can; the museum, arts council, and other volunteer based organizations that are asking for or seeking funding. These groups are important in the community, have an economic role, bring outside dollars through grants and tourism and important incentives for emerging and new and growing businesses. These organizations are important in the decisions of retirees to settle here. The organizations contribute to the quality of life to this community and add significantly to what makes this a healthy and sustainable community that is a really good place. The museum has something for everyone, is a resource for schools, and fulfills federal, state and local mandates for the preservation of the community's heritage. The museum is profoundly the repository of community memory and a place where the stories that animate both past and present and inspire the future are held, preserved and made available. The museum is a family oriented place as is the library, ballfields and fishing decks, the hunting blinds, ice rinks and basketball courts where families do their most important teaching. It is a time when parents and grandparents compress the generations into lessons of a lifetime. There is no greater treasure than what these non profits of all kinds provide to our community. The museum is a place of volunteer experience, for warm experience and time engaged in significant activities. He emphasized the need to continue partnerships and that government and volunteers cannot do it all and represent, in some cases, millions of dollars.

Nancy Lord, Library Advisory Board member representing herself, commented on the 10% department cuts and accepted this as a one year economy. She warned against this as a trend and as regarding the library there are some cuts in maintenance that are false economies as well as cuts in supplies and materials that libraries cannot do without. The Homer Public Library is inadequate for the community and getting more inadequate every day. A community a decision needs to be made very soon about a larger facility and larger operating costs. Homer has an educated population and a good library is needed for children and adults. Studies that the Library has been doing show the space inadequacies of the current facility and that a library five times larger than the current one is needed. The library has other educational materials besides books. She advised that the Library Advisory Board hopes to meet with the Council in the new year and make some recommendations about funding. The library is just one example of some bigger issues that Council needs to deal with about who is going to pay for City services that City residents and others use and what the most equitable way is to spread the cost.

Charles Davis stated that he is not happy with the way things are going, with the budget, with Council's dialog or with the armed presence of Council's private police force, which seems a violation of Section 6 of Article 1 of Alaska's State Constitution. A judge will have to straighten out this violation. Funding the non profits is a very worthy community thing, but some of the non profits' benefits are spread over more than just the City limits. He stated that it is wrong to expect City residents to do without City benefits indefinitely. He suggested that Head Start be funded with educational money from the Kenai Peninsula Borough and that he is willing to pay taxes for the education of children. The Chamber of Commerce is made up of businesses and should support themselves, especially in times where there is no money. He stated that he is not against funding all the non profits, but voiced concern on where to get the money. Some examples and ideas he offered for saving money are: The Police Department should be confined to City limits. State and Federal Police forces should enforce their laws.

The Fire Department is the same way. Let those who live outside the City limits form their own department, service area or whatever.

He stated that he was taught that the only reason City's are formed is for public safety issues; water, sewer, roads, police, fire, ambulance and services to the City. That the City would provide all these services to those who live inside the City, but that is not what has happened. This and past Councils and Mayors have not taken care of these matters and there are those in town who have not even been offered these services, except gold plated water and sewer. There has been a systematic long term disbursement of City benefits to a select few people, a violation of due process rights.

The General Fund has been supporting the Port and Harbor for years. There are no public restrooms up town.

Lease rates on the Spit are not being increased. Lease out more City property. Percentage of the gross type leases work in other places, why not do that here.

He encouraged the Council to make some serious cuts to the budget, limit jurisdiction to City limits and fully fund the non profits.

Stan Waitman stated that he was attracted to Homer four years ago because of the beauty and friendliness of the people. There is an obvious amount of culture in Homer that is remarkable for a little town tucked way up in Alaska. He stated that he has no regrets for moving here for one minute. He has been really disheartened over those who have lost your perspective and hoped they can get it back. He commented on the results of a general election and a Resolution passed by Council in support of the museum years ago. He wondered if Council had considered what just stopping funding to the museum would do, adding that the logic is faulty from the beginning. Any money given to the museum generates far more money than Council can give them. Mr. Waitman noted the letter that the Council received regarding the Museum's budget and that these are real numbers and can be proven. He stated that he really does not believe that the City of Homer is obligated at this point to implement heroic fiscal action when there really is no crisis. The trend should be reversed, but can be done intelligently, humanely and with perspective. He urged the Council to think through the process a little bit more thoroughly before jumping in and cut out all funding for essential, volunteer organizations that are so important to this town.

Mary Griswold stated that Homer is blessed with many and diverse organizations that make significant contributions to the economic and aesthetic qualities of our community. The City has supported a handful of these non profits over the years with few, if any, grant guidelines or criteria for funding. This worked okay where there were only a few non profits in town and more money to pass around. It is time to look for a better method to fund non profits. Zeroing them out of the budget is very efficient, but it is not in the best interest of our community. Continuing to fund past recipients without considering new requests does not seem fair. The non profits need a level playing field as they seek financial assistance. She voiced a hope that within the restraints of balancing the budget and increasing reserves that the City will reaffirm its commitment to the non profit sector by looking hard for some money to contribute to the Homer Foundation. This organization's mission is to support charitable purposes in our community and has a committee set up specifically to evaluate requests for funding. The City could make its donation through an advised fund, which allows the donor to participate in the selection of beneficiaries. However, by law the final grant making decision must rest with the foundation. The City could choose to trust the Homer Foundation's judgement for grant awards. Grants from the Homer Foundation will in most cases satisfy the community support necessary to leverage larger contributions from other revenue sources. The non profits deserve the City support in recognition of the tremendous benefits provided to the community and giving through the Homer Foundation is an ideal way to reaffirm the City's financial commitment to Homer's vibrant soul.

Derotha Ferarro, Director of the Homer Chamber of Commerce, commented on the funds allocated to market Homer in the year 2000 budget. As a representative of the Homer Chamber of Commerce she stated that she is thrilled at the new proposal to look at marketing Homer as a professional service. This will allow for tracking, accountability and a professional relationship between the Chamber and the City. She stated that she is not so thrilled about the amount allocated, $15,000. This is not near enough to market a town as diverse as Homer. The City is searching for revenue generators right now, the one built into the system is City sales tax. Visitors, the trade industry and commerce generate sales tax. The Chamber needs the cooperation of the City more than ever, having just signed on the dotted line with the Federal Economic Development Administration for a $300,000 matching with the Chamber's share a required $50,000. The current fund raising is for the facility only, Phase II is for landscaping, furniture, decorating, et cetera. This year's budget is the least amount of City financial support in a decade. She noted examples of City and Chamber relationships such as Soldotna providing $42,000 to the Soldotna's Chamber of Commerce along with a facility and maintenance of that facility. The Homer Chamber looks forward to working with the City on long range funding solutions. She voiced concern with the 40% cut to the Chamber and urged the Council to increase the funding.

Asaiah Bates stated that Charles Davis inspired him to testify. He voiced his support and a commendation of the Rotary Club for giving money to children and families in Russia and Japan. He commented on the work the Police Department does with DARE, a group that deals with drugs, alcohol and young peoples' problems in schools. He commented on the psychic process in Homer that is individuality and commented on the religious aspects. Mr. Bates lauded Councilmember Welles intelligent father, who educated Mr. Bates on donations and tax benefits. He stated that he loves the Council and thanked them so very, very much.

Otto Kilcher complimented the Council on the work they are doing. He commented on the Port/Harbor budget and commended the Port/Harbor personnel. He expressed his opinion that there is a small disparity with wharfage at the Fish Dock. Currently non fish wharfage is charged $10 a Ton, but every where else at the harbor it is $4 a Ton. This makes it prohibitively expensive to load freight and not a fair distribution or way to get the money. If the rates were even or comparative to all other places to load in the City the Fish Dock would be used more. He commented on the idea to discourage loading of non fish wharfage at the Fish Dock and that those doing non fish product are only there on a space available situation any way. He asked the Council to look at this before making a final vote on the budget.

Mayor Cushing called for a recess at 8:53 p.m. reconvening the meeting at 9:085 p.m.

ORDINANCE(S)

A. Ordinance 99-21, Of the City Council of Homer Appropriating Funds for the Calendar Year 2000 for the General Fund, the Water Fund, the Sewer Fund, the Port/Harbor Fund, Debt Funds, Capital Reserve Funds (Conditional Expenditures). City Manager. Finance. (First Reading 11/22/99, Public Hearing 12/13/99, Second Reading 12/13/99.)

YOURKOWSKI/FENSKE/WELLES - MOVED TO ADOPT ORDINANCE 99-21 BY READING OF TITLE.

The process of making amendments was discussed. Mayor Cushing suggested grouping amendments by category, such as times 1-7 with 29, the non profits together, Items 11, 12 and 13 and etcetera.

WELLES/KRANICH - -MOVED TO ADOPT AMENDMENTS 1-7D. AND 29.

Revenues:

1. 100.4650 General Fund, Rents and Leases increased by $25,000 for a balance of $421,424

2. 300.4905 General Fund, Donations increased by $5,000 for a balance of $5,000

Expenses:

3. 100.5206.100 Mayor/Council, Food & Staples decreased by $4,000 for a balance of $4,000

4. 100.5236.100 Mayor/Council, Transportation decreased by $3,800 for a balance of $6,000

5. 100.5248.100 Mayor/Council, Lobbying decreased by $6,460 for a balance of $7,940

6. 100.5605.100 Mayor/Council, Sister City decreased by $1,600 for a balance of $4,000

7. 100.5109.110 Manager, RIP payments decreased by $8,600 for a balance of $0

7.a. 100.5109.145 Library, RIP payments decreased by $6,940 for a balance of $0

7.b. 100.5109.160 Police Admin RIP payments decreased by $16,577 for a balance of $0

7.c. 100.5109.162 Police Invest. RIP payments decreased by $10,715 for a balance of $0

7.d. 100.5109.111 Personnel RIP Payments increased by $61,637 for a balance of $61,637.

29. 100.5819.300 Contributions increased by $5,000 for a balance of $5,000.

There was some discussion, mostly on the RIP, Retirement Incentive Program. The idea is to place all the RIP payments under Personnel for better tracking and the RIP is a benefit to the General Fund not the department.

VOTE:(amendment 1.) YES: YOURKOWSKI, MARQUARDT, KRANICH, CUE, FENSKE, WELLES.

Motion carried.

WELLES/YOURKOWSKI - MOVED TO AMEND TO INCLUDE AMENDMENTS 11, 12 & 13.

Expenses:

11. 100.5280.150 Fire Dept. Vol. Incentive Prog. increased by $2,500 for a balance of $10,000

12. 100.5603.152 EMS employee training increased by $2,250 for a balance of $14,500

13. 100.5101/5102.163 Police Pat. Sal/Ben increased by $42,546 for a balance of $396,981

KRANICH/WELLES - MOVED TO AMEND THE MOTION TO AMEND THE AMOUNT OF INCREASE FROM ITEM 11 FROM $2,500 TO $5,495 FOR AN ACCOUNT BALANCE OF $12,995 AND AMEND ITEM NUMBER 12 CHANGE THAT ITEM FROM $2,250 TO $14,500 MAKING A NEW BALANCE OF $22,250, THE SAME AMOUNT APPROVED IN THE '99 BUDGET.

There was some discussion. Apparently the Fire Department had indicated being comfortable with the recommended amendment level.

VOTE:(amendment to amendment 2.) YES: WELLES, KRANICH.

NO: FENSKE, YOURKOWSKI, MARQUARDT, CUE.

Motion failed.

VOTE:(amendment 2.) YES: WELLES, YOURKOWSKI, MARQUARDT, KRANICH, CUE, FENSKE.

Motion carried.

YOURKOWSKI/MARQUARDT - MOVED TO ADD $25,000 TO ECONOMIC DEVELOPMENT UNDER PROFESSIONAL SERVICES ITEM 8. (BALANCE IS $30,000.)

Expenses:

8. 100.5210.112 Econ Dev Prof Svs increase by $25,000 for a balance of $30,000

This is for the Chamber of Commerce and City to work together on marketing Homer.

VOTE:(amendment 3.) YES: CUE, FENSKE, WELLES, YOURKOWSKI,. MARQUARDT, KRANICH.

Motion carried.

KRANICH/MARQUARDT - MAKE A MOTION TO ADOPT AMENDMENT ITEM 9.

Expenses:

9. 100.5210.130 Planning Professional Services increase $9,000 for a balance of $10,000.

Councilmember Kranich stated that the Planning Department is losing the part time position and this is needed to hire assistance for some of the upcoming projects that Council brings to the Planning Department.

The City Manager advised that if the Planning Department ends up needing funding for a project he will come to the Council. Right now his office is doing 30% of the work of the Planning Department.

VOTE:(amendment 4.) YES: KRANICH

NO: CUE, FENSKE, WELLES, YOURKOWSKI, MARQUARDT.

Motion failed.

KRANICH/YOURKOWSKI - MAKE A MOTION TO ADOPT ITEM NUMBER 14.

Expenses:

14. 100.5210.175 Parks/Recreation Professional Services decrease $12,000 for a balance of $5,650.

This would basically eliminate the mowing contract. Use of volunteers and teens for doing the mowing was discussed. There are safety and liability concerns with volunteers especially children using power equipment. This includes mowing for City Parks and the City Cemeteries. Doing this work in-house was discussed and this will be reviewed. There was a suggestion regarding the use of those who have to do community service and et cetera.

VOTE:(amendment 5.) YES: KRANICH, YOURKOWSKI

NO: MARQUARDT, CUE, FENSKE, WELLES

Motion failed.

WELLES/FENSKE - MOVED TO AMEND NUMBER 32 AT THE $30,000 LEVEL.

Expenses:

32. 152.5902 Vehicle Rolling Stock increase $30,000 for a balance of $145,000

This is for the purchase of a used street sweeper. There are several advantages to owning this equipment including being able to sweep as needed and recycling the material that is coming off the streets.

VOTE:(amendment 6.) YES: YOURKOWSKI, MARQUARDT, KRANICH, CUE, FENSKE, WELLES.

Motion carried.

City Manager Drathman pointed out that this amendment will also take an item off the CIP list that has been there for fifteen years at a level of $85,000.

YOURKOWSKI/CUE - MAKE AN AMENDMENT TO FUND MUSEUM, ARTS COUNCIL, BOTH SKI CLUBS, BUNNELL STREET (GALLERY) AND SNOMADS AT 90% OF THE 99 LEVELS.

Expenses

Deals with items 15 - 28. Contributions: Museum - $97.47, Arts Council $4,050, Kachemak Ski Club $1,440, Nordic Ski Club $2,250, Bunnell St. Gallery $1,350 and Snomads $1,350 for a total of $107,910 at the 90% level.

Mayor Cushing called for a recess at 11:03 p.m. reconvening the meeting at 11:15 p.m.

There was in depth discussion regarding the funding of non profits.

MARQUARDT/CUE - MOVED TO AMEND THE AMOUNT AND FUND THE NON PROFITS AT 80% FUNDING LEVEL. (80% of 99 funding level.)

WELLES/KRANICH - MOVED TO AMEND THE AMOUNT TO 50%.

VOTE:(amendment(50%) to amendment to amendment 7.) YES: FENSKE, WELLES, KRANICH.

NO: CUE, YOURKOWSKI, MARQUARDT

MAYOR: TIE VOTE: NO.

Motion failed.

VOTE:(amendment (80%) to amendment 7.) YES: YOURKOWSKI, MARQUARDT, CUE.

NO: FENSKE, WELLES, KRANICH.

MAYOR: TIE VOTE: YES.

Motion carried.

FENSKE/ - AMEND THIS TO $54,150 FOR MUSEUM WITH THE DIFFERENCE BETWEEN THAT AND THE 80% FUNDING TO BE PUT INTO THE FOUNDATION AS AN ENDOWMENT OR INTEREST OR GROWTH ENDOWMENT, HOWEVER THAT'S DONE, TO PROVIDE A BIGGER NEST EGG TO KIND OF GET THE BALL ROLLING HERE.

Figures from the Finance Director requested by the Mayor, would be about $32,490 from what would go to the museum and move to a municipal endowment.

Motion failed due to lack of a second.

VOTE:(amended amendment level) #7.) YES: YOURKOWSKI, MARQUARDT, CUE, FENSKE

NO: WELLES, KRANICH.

Motion carried.

Non profits are funded at 80% of the 1999 funding level.

FENSKE/YOURKOWSKI - MOVED THE ADOPTION OF THIS AMENDMENT TO CREATE A $5,000 FOUNDATION ENDOWMENT SET UP.

Expenses

31. 100.350 Contributions, Foundation Set Up $5,000 for a balance of $5,000

There was some concern about not having the Foundation's Bylaws and other corporate structure information.

Councilmember Yourkowski noted that the Council already voted, under the Consent Agenda, to set up a task force to review the Homer Foundation next month.

VOTE:(amendment 8.) YES: MARQUARDT, KRANICH, CUE FENSKE, WELLES, YOURKOWSKI.

Motion carried.

VOTE:(main amended motion) YES: MARQUARDT, KRANICH, CUE, FENSKE, WELLES, YOURKOWSKI.

Motion carried.

CITY MANAGER' S REPORT

A. City Manager's Report. (Ice/Crane time report, Icicle Seafoods Inc. cancellation of lease on Lot 12A-3, Fire Chief Purcell resignation, Homer Foundation Information.)

B. Game Permit Report, from City Clerk

City Manager Drathman reported that he has appointed Bob Painter as the Acting Fire Chief. This is due to the unexpected resignation of Robert Purcell.

COMMITTEE REPORT

PENDING BUSINESS

NEW BUSINESS

A. Memorandum 99-222, from Port Director/Harbormaster, Re: Terminal Use Permit, permit change.

Recommendations: Port/Harbor Commission recommends that the City Council approve the Port/Harbor Advisory Commission's recommendations as detailed within the memorandum. Harbormaster's recommendation concurs with the notation Definitions H. should be revised to read: "Longshore Services" means any act of cargo loading or unloading, direct loading or unloading, handling or storing of cargo, or line handling to moor and unmoor vessels at the docks.

WELLES/YOURKOWSKI - MOVED TO ADOPT THE RECOMMENDATION OF MEMORANDUM 99-222.

Council inquired about auditing the amount of labor by the permittees.

Port Director/Harbormaster Abbott advised that his personnel are aware of the activities on the dock and depends on the permittee(s) making a report subject to audit under the TUP. In a case like the existing TUP with North Star Stevedoring the 10% is 10% of what they bill their customers and that bill is subject to audit.

Council noted the fair amount of public comment on the TUP, section 13, waiver and idea of selective enforcement, section 14, insurance and liability clause and the fire control clause.

Port Director/Harbormaster Abbott stated that this TUP has been a pending item since September 22, 1999 and section 13 was never brought up. Debate concluded on November 10. He stated that he has no problem with Section 13, waiver, and that it is fine as it is. The language of this TUP, in general, is language used in TUPs elsewhere, nationally. He pointed out that the insurance language was studied by the City Manager and the City Attorney. The fire control has been a standard section in this TUP since 1989 and is standard for TUPs.

Mayor Cushing suggested postponement to next regular meeting, unless Council feels comfortable with the permit language. He stated that this does not have to go back to the Port/Harbor Commission.

KRANICH/MARQUARDT - MOVED TO POSTPONE TO NEXT REGULAR MEETING. (January 10, 2000.)

VOTE:(postponement) YES: WELLES, YOURKOWSKI, MARQUARDT, KRANICH, CUE, FENSKE.

Motion carried.

B. Memorandum 99-223, from City Clerk, Re: Appointment of Mayor Pro Tem for 1999/2000.

Recommendation:_______________ is appointed as Mayor Pro Tempore for the City of Homer for 1999/2000.

YOURKOWSKI/WELLES - MOVED FOR APPROVAL OF THE RECOMMENDATIONS OF MEMORANDUM 99-223 BY READING OF TITLE.

YOURKOWSKI/FENSKE - MOVED TO AMEND MEMORANDUM 99-223 AND TO READ KURT MARQUARDT IS APPOINTED AS MAYOR PRO TEMPORE FOR THE CITY OF HOMER FOR 1999/2000.

VOTE:(amendment) YES: CUE, FENSKE, WELLES, YOURKOWSKI, MARQUARDT, KRANICH.

Motion carried.

VOTE:(main amended) YES: FENSKE, WELLES, YOURKOWSKI, MARQUARDT, KRANICH CUE.

Motion carried.

RESOLUTIONS

A. Resolution 99-118, Of the City Council of Homer, Alaska Revising the Port and Harbor of Homer Terminal Tariff No. 600. Port/Harbor Rate Committee. City Council. Port/Harbor Commission. City Clerk.

Memorandum from Rate Committee Chair as backup, with Final Committee Report

Memorandum from Finance Director as backup.

Port Harbor Rate Committee Synopsis

WELLES/YOURKOWSKI - MOVED TO ADOPT RESOLUTION 99-118 BY READING OF TITLE.

Councilmember Yourkowski pointed out that the seasonal rates for the Load and Launch Ramp were recommended to be reduced to $75 per year and then reviewed after the first of year of this two step kind of a cost of living increase.

WELLES/YOURKOWSKI - MOVED TO AMEND RATES ON WOOD GRID TO BE LEFT AT $.50 BASED ON RECOMMENDATION OF THE PORT/HARBOR COMMISSION UNTIL THE NEW GRID IS DONE.

VOTE:(amendment 1.) YES: MARQUARDT, KRANICH, CUE, FENSKE, WELLES, YOURKOWSKI.

Motion carried.

Beach rates versus steel grid rates were discussed.

KRANICH/WELLES - MOVED TO AMEND THE BEACH LANDING FEE ON VESSELS OVER 50 FEET BACK TO $1 PER FOOT.

In response to the Council the Port Director/Harbormaster advised that the comparison is being made between the steel grid and the beach. The beach or barge ramp rate is lower except for the area where it is a little lower for those under 50 foot. He emphasized the amount of clean up required on the beach and that the rate increase is to, in part, recover part of that labor cost.

Although the rates on the steel grid are still more than the beach rates for the larger vessels, Council stated that the point is that the beach rates for vessels over 50 feet are doubling.

VOTE:(amendment 2.) YES: KRANICH

NO: YOURKOWSKI, MARQUARDT, CUE, FENSKE, WELLES.

Motion failed.

FENSKE/YOURKOWSKI - AMEND SECTION 19 PARAGRAPH B PAGE 302 VESSELS SHALL BE CHARGED, I'D LIKE TO SEE THAT LAUNCH RAMP RETURNED TO $5.50 INSTEAD OF $10.00

FENSKE/YOURKOWSKI/MARQUARDT - MOVED TO SUSPEND THE RULES TO GO PAST MIDNIGHT.

VOTE:(rules suspension) YES: FENSKE, WELLES, YOURKOWSKI, MARQUARDT, KRANICH, CUE.

Motion carried.

The seasonal permit fee of $100 for the load and launch ramp for an entire summer was discussed.

These rates are necessary to cost recovery in the rate methodology and the actual costs incurred were backtracked into these numbers. A user/cost/payer methodology was used to figure the rates.

Discussion ensued on the load and launch ramp rates. Money could be made back in parking fees.

Port Director/Harbormaster Abbott advised that to administer and monitor parking in that area staffing would have to increase. The parking fee built into the load and launch ramp fee brings the City of Homer right in line with other entities such as Seward.

City Manager Drathman pointed out that the Council gave this committee the charge to come up with cost based things. He recommended that Council stick with this mandate or send it all back and do it again.

VOTE:(amendment 3.) YES: FENSKE

NO: WELLES, YOURKOWSKI, MARQUARDT, KRANICH, CUE, FENSKE.

Motion failed.

The non fish wharfage of $10 per ton on the Fish Dock and $4 per ton elsewhere in the harbor was discussed.

Port Director/Harbormaster Abbott stated that this goes back quite a few years. The wharfage currently in the tariff is $4 for nonfish cargo on the Main Dock, Deep Water Dock or on the Barge Ramp. It is $10 per ton on the Fish Dock. It was developed some years past as a deterrent to keep as much of the non fish cargo as possible away from the Fish Dock. Fish Dock was funded and was to be used under grant funding the City agree with the terms that the Fish Dock would be maintained and operated for the benefit of the Commercial Fishing Industry. With that in mind this rate was set at a higher level for the Fish Dock so that the space at the Fish Dock and the cranes are used most of the time and primarily for fisheries business. He noted that under the TORA project or later a bulk head will hopefully be built for non fish cargo.

City Manager commented that part of the concern is regarding spills and hazardous materials. Should a spill occur the Fish Dock would have to be closed down until it is DEC clean.

There was a brief comment regarding the Fish Dock Use Permit.

VOTE:(main amended motion) YES: KRANICH, CUE, FENSKE, WELLES, YOURKOWSKI, MARQUARDT.

Motion carried.

B. Resolution 99-119, Of the City Council of the City of Homer, Alaska Authorizing the Formation of the West Lakeshore Drive Water and Sewer Improvement/Assessment District and Authorizing the City Manager to Proceed with the Preparation and Construction of Said District. City Clerk

Fiscal Note: Total Project cost estimated at $488,350. Total Property Owners' assessment: $122,087.50

MARQUARDT/YOURKOWSKI - MOVED FOR THE ADOPTION OF RESOLUTION 99-1`19 BY READING OF TITLE.

VOTE: YES: CUE, FENSKE, WELLES, YOURKOWSKI, MARQUARDT, KRANICH.

Motion carried.

C. Consent Agenda Item. L. RESOLUTION 99-115, Requesting that the City Manager Develop, on or Before Feb. 15, 2000, a Work Plan and Time Line for Annexing to the City of Homer's Boundaries Outlying Areas that are Benefitting from Services Provided by the City of Homer, Particularly Sewer and Water. Yourkowski. Recommend adoption.

YOURKOWSKI/WELLES - MOVED FOR THE ADOPTION OF RESOLUTION 99-115.

Councilmember Yourkowski stated that he would like to start working on annexation or service areas to assist with the budget issues.

Councilmember Welles voiced agreement and noted the previous work by Val Koeberlein, Planning Director Bechtol and part time Planning Tech Brown.

KRANICH/WELLES - MOVED TO AMEND RESOLUTION 99-115 TO STRIKE THE FOURTH WHEREAS CLAUSE IN ENTIRETY.

Fourth Whereas reads: Whereas, the City of Homer has been providing museum services to outlying areas at an expense to the citizens of Homer.

VOTE:(amendment) YES: MARQUARDT, KRANICH CUE, FENSKE, WELLES.

NO: YOURKOWSKI.

Motion carried.

VOTE:(main amended) YES: KRANICH, CUE, FENSKE, WELLES, YOURKOWSKI, MARQUARDT.

Motion carried.

D. Consent Agenda Item. N. Resolution 99-116, Of the City Council of Homer, Alaska Amending the Fee Schedule to Set a Cap on Credit Card Payments. Yourkowski. City Manager. Recommend adoption. Cap is $500.00.

WELLES/FENSKE - MOVED TO ADOPT RESOLUTION 99-116 BY READING OF TITLE

Council commented about concerns regarding paying leases with credit cards and the high credit card transaction fees. This is a budgetary administrative cost reduction item. It was further noted that this is a compromise instead of eliminating credit card payments entirely.

VOTE: YES: YOURKOWSKI, MARQUARDT, KRANICH, CUE, FENSKE, WELLES.

Motion carried.

E. Consent Agenda Item F. Resolution 99-114, Of the City Council of Homer, Alaska Accepting $10,000 from the ADOT/PF for Performing Level 1, 2, & 3 Commercial Vehicle Inspections and Authorizing the City Manager to Execute the Standard Agreement Form.

Memorandum from HPD as backup. Recommend adoption.

FENSKE/YOURKOWSKI - MOVED FOR THE ADOPTION OF RESOLUTION 99-114 BY READING OF TITLE.

No discussion.

VOTE: YES: WELLES, YOURKOWSKI, MARQUARDT, KRANICH, CUE, FENSKE.

Motion carried.

COMMENTS OF THE AUDIENCE

Michael Hawfield, as a member of the community, acknowledged the immensely professional work done by City Manager Drathman and Finance Director Baugh for the budget for the year 2000 and thanked that Council for all their very hard work.

Dave Vanderbrink commented that one of the things he did not mention earlier in the TUP was that in Section 8 where it says that the fees are to be collected for the vessel or employer, but four sentences later it says that it does not matter whether they pay or not. This is something that is obviously true, but why let them off the hook that easily and why not give a little City support for that sort of collection. He stated that there is an answer for the permanent fund for the non profits that Councilmember Fenske brought up and that's a bed tax. He reported that most of the places where he has traveled have a bed tax, so why not do it in Homer. Mr. Vanderbrink noted Charles Davis comment that he is tired of the City supporting the Port and Harbor. However, according to Mr. Vanderbrink it is the other way around and the City would be in a rather desperate situation if it were not for the Port and Harbor. If the Port and Harbor did not have the City to contend with it could do very, very well for itself. He voiced concern regarding Spit evacuation plans in case of a Tsunami and that Council has recently authorized more beds on the Spit and that a lot of people just would not make it. At the log yard there is enough top soil to satisfy a lot of farmers, however, when it rains and gets to be enough of a mess equipment is used to slobber out a trench to the rock fill, the slurry runs off into the rock fill in various places and that is something that needs to be addressed. The 60 foot public way around the outside of that log area is being encroached on severely and the passage is very difficult. When it comes to the logs if the City does not have enough money in escrow from the people that use that area to clean it up when they leave it is going to cost the City. When that activity quits there will be a great pile of fire wood out there and no use for it. The problem of putting freight over the Fish Dock is waiting on a work dock being built on the north side of the harbor, just this side of the heavy grid and this has been talked about for years. He stated that he would be happy to talk to anyone about the TUP any time and gave his phone number.

Asaiah Bates stated that Council has fulfilled the destiny of Homer's Budget and did a great job. There is peace and harmony and a little humor along the way. It was just beautiful. In 1959 the dock was quite a bit different, so progress is a part of the process of life. Adjusting intelligently and making the adjustment to the progress and using the progress in a positive, creative and constructive light to keep the City, Dock, Public Works, Police Station, Hospital and City Council in great and beautiful order. He thanked the Council for all the good work, it was beautiful, out of this world and very educational. He stated that he liked Councilmember Fenske's comments.

COMMENTS OF THE CITY ATTORNEY

City Attorney Tans was not present.

COMMENTS OF THE CITY CLERK

City Clerk Calhoun wished all Happy Holidays.

COMMENTS OF THE CITY MANAGER

City Manager Drathman thanked all those who worked to get the City Christmas Party done. He thanked Finance Director Baugh for all his hours on the budget, Accounting Manager Mack, all of finance and the Mayor and Council for all the work on the budget. He commended the Port/Harbor Rate Committee and the Commission, especially Chair Sam Matthews and Councilmember Welles, for the work on the Tariff Revisions. The work on the rates will benefit the City for years to come and the TORA that makes all the maintenance at the harbor the City's responsibility now mandates that this rate increase be done. He noted the work on the Terminal Use Permit and that the Port/Harbor Commission held several meetings to review and revise the permit.

COMMENTS OF THE MAYOR

Mayor Cushing thanked the staff, other folks for helping the Council and himself put on the Christmas Party. He relayed his research and study, since August, regarding the non profit issues, including criteria. He commented on the work of the City departments to cut 10% from their budgets. He commented on the letters that he and the Council received regarding the budget, mostly on non profits, that 95% were professional and 5% were really poorly done. Regarding the harbor tariff increases he voiced his suspicion that the public response on the first billing could go either way. He commented on the 100 letters Council had received stating that the Council should wait to increase rates until the rate model is done.

COMMENTS OF THE CITY COUNCIL

Councilmember Kranich voiced his appreciation for all the work the Council put into the budget that this is a working document and they will have to keep on top of it. On behalf of his family he commended the Fire Department for the professionalism and caring manner in his Step Son and Daughter-in-law's recent house fire. He noted that the Fire Department had just gotten back to the station from a fire at Chief Purcell's house when the alarm went off for his family's house.

Councilmember Cue thanked the City Clerk, City Manager and Mayor and other City Officials for their work on the Christmas party. She thanked all those who worked so hard on the budget, voicing her desire to keep expenditures down. She wished all a Safe and Happy Holiday season. Ms. Cue stated that she looks forward to working with everyone next year.

Councilmember Yourkowksi thanked the Finance Director, City Manager and the City employees for all the budget work. He emphasized that state revenues are dropping and there is little waste in the 2000 Budget. He asked for Council's input on the two items he put in their baskets, before bringing Ordinances forward, to consider for raising funds for next year.

Councilmember Marquardt voiced agreement with the sentiments of rest of Council and thanked the administration for all the hard work put into the budget. He stated that Homer is the best town to live in, probably the best in the U.S., which has a lot to do with the hard work of the people who work in the City. He stated that he really means that Homer is a great place to be. He wished everybody a Happy, Healthy and Safe Holiday and Best Wishes in the next millennium.

Councilmember Fenske commented on the budget process and that in about a month it will start again. He commented about the town getting out of contact with government over the last twenty years. Personal involvement time has become so precious, that there is so little involvement that people do not realize how much energy goes into making all these entities stay afloat. He commented on the poor election turn out of 16% or 20% as being evidence of that apathy that seems to have set in. He relayed his personal history of a small town environment and his graduation in 1959 from High School. He also commented on ordering dog food over the Internet. Mr. Fenske voiced his appreciation for this community and the people around this town. He thanked Councilmember Welles for his work on the tariff revisions and rate committee, adding that this was a thankless thing.

Councilmember Welles gave kudos and thanks to the City Staff for the best City Budget he has ever seen. He stated, to City Manager Drathman, that if he had known this budget was coming he would have been a bigger supporter.

ADJOURNMENT

There being no further business to come before the Council the meeting was adjourned at 1:02 a.m. The next regular meeting is scheduled for January10, 2000 at 7:30 p.m. in the Homer City Hall Council Chambers. Happy Holidays

__________________________________________

MARY L. CALHOUN, CMC/AAE, CITY CLERK