Session 04-29, a Regular Meeting of the Homer City Council was called to order at 7:00 p.m. by

Mayor James C. Hornaday at the Homer City Hall Council Chambers located at 491 E Pioneer Avenue, Homer, Alaska, and opened with the Pledge of Allegiance.

PRESENT: COUNCILMEMBERS: McLAY, NOVAK, STARK, WYTHE, YOURKOWSKI.

STAFF: CITY MANAGER WREDE

CITY CLERK CALHOUN

FINANCE DIRECTOR BAUGH

ABSENT: COUNCILMEMBER: BECK (excused)

Council met as a Committee of the Whole from 4:08.3 p.m.to5:28 p.m., mainly discussing the budget and conducted a Special Meeting from 5:35 to 6:30 p.m. for an Executive Session.

Department Heads may be called upon from time to time to participate via teleconference.

AGENDA APPROVAL

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

The Agenda was approved by consensus of the City Council with the following changes: Deletion of Ordinance 04-57 from the Consent Agenda at the request of the sponsor, Councilmember Novak, will be placed on January 10, 2005 Regular Meeting Agenda; Correction on page two of Resolution 04-103 , July 11 should be Special Meeting July 18 under City Council meetings, as noted in the supporting paragraph; Correction on the fiscal note for the Special Services contract Fiscal Impact: Revenues of. $72,500, budgeted in 100.4505.030; Correction on Resolution 04-109 dollar amount is $759.49 per month; AML Report from Councilmember Novak, Memorandum 04-157 and the City Manager's report are submitted with the supplemental packet.

PUBLIC COMMENTS UPON MATTERS ALREADY ON THE AGENDA

Public comments upon any matter on the agenda except Public Hearing Items: Ordinance 04-53(S), 2005 Budget and accompanying Resolution 04-94(S) -- 04-98(S).

Frank Griswold, resident, advised, not knowing the Mayor's policy, that he wrote out many of his comments on Resolution 04-102. (1) He voiced his hope that the Council will pull this item from the Consent Agenda, at least discuss it and maybe incorporate some of his suggestions. He commented on Memorandum 04-153, vacation of the alley. He stated that he noticed that the Public Works Director had no objection, but did not see anything about the City Attorney's input. In the Council packet it shows that one Borough Assembly person stated that they could not vacate a portion of an alley in the City of Seward, adding that he assumes this was for a legal reason. He said that he wonders if Homer has a similar law, if not, why not, because it makes absolutely no sense to him to vacate the middle section of an alley. He inquired what good an alley is if it can't be driven on, and what happens if others want to vacate a section of an alley, this would make an isolated alley in between two ends. He voiced his opinion, not suggesting that a property owner be denied the right to put a house on his property, that is not necessary and the alley should be vacated in entirety or not at all. He stated that there are procedural problems with this proposal: Homer City Code 1.12.060, City Employees and Officials and Conflict of Interest: A City official other than a member of the City Council, may not participate in an official action in which he has a substantial financial interest.

Homer City Code 1.12.010 definitions: A person's financial interest includes any affiliation with an organization in which he has an ownership interest, holds a position of management, or is an officer, director, trustee, employee, or the like. Mr. Griswold stated that Commissioner Hess obviously had a conflict of interest in that he is a long time business associate with Bob Brant, an electrical sub contractor on the Islands and Oceans Project, and there is no doubt that he will probably wire the new house. He stated the following: Mr. Hess properly disclosed his conflict of interest, but the Commission voted three to two that there was no conflict of interest. Commissioner Connor declared a conflict of interest as an adjacent property owner to the Brants and was later deemed to have a conflict of interest and did not participate further, however, had already voted that Mr. Hess did not have a conflict of interest. No new vote had been taken, if it had been and if the vote had been two/two, the Commission's procedure manual does not indicate whether or not he would have been allowed to participate. There is no tie break at the Commission. Mr. Griswold suggested that there is some similarity to this case to one earlier where Councilmember Dennis Leach was alleged to have a conflict of interest regarding the Land's End Condominiums. He suggested that the Council read the City Attorney's opinion regarding that matter. He emphasized that granting the vacation of a portion of the alley is a bad precedent, that this should be vetoed and sent back to square one with the conflicts of interest eliminated and the whole alley on the table and not just one section. He gave one final thought, that he hoped when the Council was in Executive Session that somebody had the presence of mind to ask the Attorneys to explain how it is in the best interest of the City to have your zoning decisions overturned by ballot initiative. He thanked the Council.

RECONSIDERATION

None scheduled.

CONSENT AGENDA

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

Councilmember Yourkowski requested that Item E. be placed under Resolutions and that Item N. be placed under New Business.

A. Homer City Council unapproved meeting minutes of November 22, 2004 Regular Meeting and December 6, 2004 Special Meeting. City Clerk. Recommend approval.

B. Ordinance 04-54, Of the City Council of Homer, Alaska Appropriating Unexpended Grant Funds from the Bypass Project to the East End Road Water and Sewer Project and Authorizing the City Manager to Execute the Appropriate Documents. City Manager. Fiscal Note: Funding from 215-852Bypass Grant and Expenditure 215-829 East End Road Water and Sewer Extension Project$41.000.00. Recommend introduction for first reading and conduct public hearing and second reading on January 10, 2005.

C. Ordinance 04-55, Of the City Council of the City of Homer Amending the Official Road Maintenance Map of the City of Homer by Adding 514 Lineal Feet (.10 mile) Cook Way, as an Urban Road. Public Works. City Clerk. Fiscal Note: Additional maintenance costs $1,250.00 Recommend introduction for first reading and conduct public hearing and second reading on January 10, 2005.

Memorandum 04-151, from Public Works as backup.

D. (Pulled under Agenda Approval till January 10, 2005). Ordinance 04-57, Of the City Council of Homer, Alaska Approving and Submitting a One Percent Increase in the City Sale Tax, .25 Dedicated to a Community Enhancement Fund, to the Voters for Voter Approval at a Special Election on Tuesday, February 22, 2005 and Providing for a Maximum Property Tax Rate in 2005 of 4.25 Mils if the Sales Tax Increase is Approved by the Voters. Novak. Recommend introduction for first reading and conduct public hearing January 10, 2005 and second reading on January 24, 2005

Pulled, scheduled for January 10, 2005.

E. Resolution 04-102, Of the City Council Amending the Homer Advisory Planning Commission Procedures Manual and Bylaws. City Manager. Planning. Recommend adoption.

Placed under Resolutions as the request of Councilmember Yourkowski.

F. Resolution 04-103, Of the City Council of Homer, Alaska Establishing the 2005 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. Recommend adoption.

G. Resolution 04-104, Of the City Council Confirming the City Manager's Appointment of Carey Meyer as the Acting City Manager for Calendar Year 2005. Recommend confirmation.

H. Resolution 04-105, Of the City Council of Homer, Alaska Designating Signatories of City Accounts and Superseding any Previous Resolution so Designating. City Clerk. Recommend adoption.

I. Resolution 04-106, Of the Homer City Council Expressing Its Position Regarding Regionalization; An Alternative Under Consideration by the North Pacific Fisheries Management Council as a Method to Achieve its Goals on Gulf of Alaska Groundfish Rationalization. Requested by Mayor and Council. Recommend adoption.

J. Resolution 04-107, Of the Homer City Council Instituting a Hiring Freeze for New City Positions, A Temporary Freeze on Filling Vacant Positions, and Directing the City Manager to Implement a Restructuring Plan. Wythe. Recommend adoption.

K. Resolution 04-108, Of the Homer City Council Adopting an Alternative Allocation Method for the FY 05 Shared Fisheries Business Tax Program and Certifying that this Allocation Method Fairly Represents the Distribution of Significant Effects of Fisheries Business Activity in the Cook Inlet Fisheries Management Area. City Manager. Recommend adoption.

L. Resolution 04-109, Of the City Council of the City of Homer, Alaska Authorizing the City Manager to Execute Amendment Nine to Lease 2443, with the Alaska Department of Public Safety for Office Space at the Homer Police Department for a Term to Expire June 30, 2005 in the Amount of $759.49 per Month. City Manager. Homer Police Department. Fiscal Impact: Revenues of $759.49 per month budgeted. Recommend adoption.

M. Resolution 04-110, Of the City Council of the City of Homer, Alaska Authorizing the City Manager to Execute a Three Year Contract for Special Services in the Amount of $18,125.00 per Quarter with the Alaska Department of Public Safety. City Manager. Homer Police Department.Fiscal Impact: Revenues of $72,500, budgeted in 100.4505.030. Recommend adoption.

Memorandum 04-152, from Chief of Police as backup.

N. Memorandum 04-153, from City Clerk, Re: Vacate a portion of a 20 foot Alley Between Lots 90 and 95, Dedicated by Oscar Munson Subdivision (Plat HM 3415); within Section 20, Township 6 South, Range 13 West, Seward Meridian, Alaska; KPB File 2004-268; Note: Per petition, a 20 foot Pedestrian and Utility Easement to be granted; Petitioners: Robert J. and Pamela J. Brant of Homer, Alaska. Recommend approval and non veto.

Placed under New Business at the request of Councilmember Yourkowski.

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

There was no discussion.

VOTE: YES: NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

VISITORS

None scheduled.

ANNOUNCEMENTS/PRESENTATIONS/BOROUGH REPORT/COMMISSION REPORTS

A. Memorandum 04-154, from Councilmember Wythe, Re: Travel Report, AML Annual Conference.

B. Memorandum 04-155, from Councilmember McLay, Re: Travel Report, AML Annual Conference.

C. Memorandum 04-156, from Councilmember Stark, Re: Travel Report, Resource Development Council Meeting.

D. Memorandum 04-157, from Councilmember Novak, Re: Travel Report, AML Annual Conference.

E. Sister City Membership Certificate.

There was no discussion on the first five items.

F. Library Advisory Board Report (Actually given after Item G.)

Sue Mauger gave a report and update on funding for the Library Project: Rasmusen Foundation contribution of $1.2 million, very much due to the Community support. Grant from Wells Fargo for $20,000.00, hoping that this will encouraged other businesses in the community to come forward and be major donors in this project. $1.3 needs to be raised before going to bid for this project. Plans for raising the $1.3 million include grant applications to the USDA, Economic Development Administration, Paul G. Allen and the Kresge Foundation. The grant applications represent more than $2 million. She relayed the optimism for raising the $1.3 million and even more, which will help reduce the loan amount. She encouraged the Council to hold off on making any decisions about making significant changes to the concept of the design of the Library building and site. She encouraged everyone to buy their fish for Christmas, that these are still for sale and that this has been a real fun part of the Library Project and is just one more way for people to get involved. She thanked the Council for their time and creative ideas for trying to solve the City budget issues and that the Library Advisory Board supports the Council's work. She asked the Council to let the Board know if there is anything that they can do to help with these deliberations.

The Mayor interjected his assurance that City Manager Wrede and Special Projects Coordinator Holen are working very hard on grants, adding that his hand is almost exhausted from signing grants. He noted that they have all called all the legislators and congressional delegations. He encouraged the Library Advisory Board to continue their good work.

G. SOS Presentation of $10,000.00 Check.

Sherry Bess, representing SOS - Supporting Our Shelter team, gave a brief report on the fund raising activities and verbally presented the Council with a $10,000.00 check from Homer Animal Friends, advising that due to the snow storm the Homer Animal Friends' treasurer was unable to attend. SOS, a Homer Animal Friends Committee, was formed to raise awareness for the Animal Shelter and has, to date, given the City approximately $4,200.00. The $10,000.00 was raised through raffles, donors, and a very successful Fur Ball. Last year Homer Animal Friends presented the City with check for $50,000.00 and that with the contributions from SOS this brings the total amount presented to the City at $64,200.00. She expressed excitement with the new facility and that there is positive feed back from the Community.

PUBLIC HEARING(S)

Public hearing on Ordinance 04-53(S) and Resolutions 04-94(S) through 04-98(S) only.

A. Ordinance 04-53(S), Of the Homer City Council Appropriating Funds for the Calendar Year 2005 for the General Fund, the Water-Sewer Fund, the Port/Harbor Fund, Debt Funds, Capital Reserve Funds (Conditional Expenditures). City Manager. Finance Director/Treasurer. (First Reading and Public Hearing November 22, 2004, Public Hearing December 6, 2004, Public Hearing and Second and Final Reading December 13, 2004.)

General Fund $7,769,931

Water/Sewer Fund $2,745,732

Port/Harbor Fund $2,904,298

Capital Projects $2,768,033

Internal Service Fund $1,164,720

Total Expenditures $17,352,714

The property tax mill levy is set at 5.0 mills for 2005.

A. 1. Resolution 04-94(S), Of the City Council of the City of Homer, Alaska Amending the City of Homer Fee Schedule regarding Water Rates. City Manager. Finance. Fiscal Note: Changes addressed in budget. Follows same schedule as Budget Ordinance. Action under Resolutions.

A. 2. Resolution 04-95, Of the City Council of the City of Homer, Alaska Amending the City of Homer Fee Schedule regarding Sewer Rates. City Manager. Finance. Fiscal Note: Changes addressed in budget. Follows same schedule as Budget Ordinance. Action under Resolutions.

A. 3. Resolution 04-96, of the City Council of Homer, Alaska Revising Certain Portions of the Port and Harbor of Homer Terminal Tariff NO. 600. City Manager, Finance, Port and Harbor. Fiscal Note: Changes addressed in budget. Follows same schedule as Budget Ordinance. Action under Resolutions.

A. 4. Resolution 04-97, Of the City Council of Homer, Alaska Extending the City Attorney Contract with Perkins Coie for the Period of January 1, 2005 through December 31, 2005 in the Amount of $7,650.00 per Month for Forty Five Hours and Authorizing the Mayor to Execute the Contract. City Manager. Fiscal Note: Budgeted in 100.100.5210. Changes addressed in budget. Follows same schedule as Budget Ordinance. Action under Resolutions.

A. 5. Resolution 04-98(S), Of the City Council of the City of Homer, Alaska Amending the City of Homer Fee Schedule. City Manager. Finance. Fiscal Note: Changes addressed in budget. Follows same schedule as Budget Ordinance. Action under Resolutions.

Leonard Wells; resident, property owner and tax payer; gave some general comments, noting that he was, unfortunately, out of the region since the election and the November time frame when the budget were possibly being discussed. He voiced a wonder about things like the water rate changes and that from what he can figure it appears to be based on an attempt by the City to raise General Fund revenues to spend some place other than supplying water to the City residents. He stated that some of the general items in the past that were unnecessary, not legally mandated, have been eliminated such as the Pratt Museum and some of the others. He noted that at the last general election the citizens said that they would like to have a library, but did not want the sales tax that would have helped to off set the payments on that. He voiced a hope that the City Council, until it finds where the citizens are willing to fund things like the Animal Shelter and the Library, will not let the bonds out for bid and spend the money until Council finds out how to raise the funds.

There was no further testimony.

STARK/NOVAK - MOTION FOR THE ADOPTION OF ORDINANCE 04-53(S) BY READING OF TITLE.

STARK/YOURKOWSKI - MOVED TO AMEND THE BUDGET ACCOUNT NUMBER 5801 PRATT MUSEUM ON PAGE B 7 BY INCREASING 40,000.00 TO THE BALANCE OF $80,000.00. (Primary amendment 1.)

Councilmember Stark noted that the Pratt Museum occupies a special place in relationship with the City and provides a lot of benefits to the citizens. He addressed the suggestion about partial funding and then maybe doing the rest of the funding at mid year. He pointed out that the problem is that the Museum uses the City support to leverage grants and other funding. He advised that it is pretty normal to fund something all or nothing. He commented on the anxiousness this causes amongst the staff and lauded the work of the Museum.

Concurrence with the comments was voiced by Councilmember Yourkowski, who encouraged the Council to support this amendment.

Councilmember Novak asked that the amendment be withdrawn, that he would prefer addressing the revenue part of the budget first.

Mayor Hornaday asked if there was any objection to withdrawing the motion.

Councilmember Stark objected.

Councilmember Wythe stated for the record, "That while I am totally in favor of supporting the Museum and other community endeavors, I do have a severe reservation about allocating funds to the Museum when we do not have sufficient funds to meet our other fiduciary responsibilities, and so I just, feel like this is an inappropriate response on the part of the Council to set aside funding for this specific item when we don't know where the money is coming from at this time."

Discussion ensued.

Councilmember Stark withdrew his objection.

YOURKOWSKI/MCLAY - MOVED TO TABLE UNTIL AFTER REVENUE IS DISCUSSED.

A motion to lay on the table may not be deliberated.

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

Motion carried.

Councilmember Wythe suggested reviewing the Council's proposed amendments, page 209 of the Council's packet, by line.

She suggested acceptance of lines 2. and 3B, 5 parking and advertising and 7 spit camping fee $15 per night at 40,000.00.

WYTHE/NOVAK - MOVED TO ACCEPT THOSE LINE ITEMS OUT OF THE REVENUE SEGMENT AS ONE UNIT. (Primary amendment 2.)

Primary amendment 2 was withdrawn.

WYTHE/STARK- MOVED FOR THE ACCEPTANCE OF LINE TWO LIBRARY REVENUE AT THE $40,000.00 LEVEL AS DISCUSSED EARLIER TODAY. (Primary amendment 3.)

Councilmember Yourkowski asked if the Council had an opportunity to read the Library Director's Memo recommending against this fee.

Councilmember Novak inquired if this money includes, potentially, library card fees.

Response from a couple of sources was in the negative.

VOTE:(Primary amendment 3): YES: MCLAY, WYTHE, STARK, NOVAK.

NO: YOURKOWSKI.

Motion carried.

WYTHE/STARK - MOVED FOR THE ACCEPTANCE OF LINE 3B WHICH IS ALSO LIBRARY SERVICES AND IS ADDRESSING LIBRARY CARD FEES FOR A REVENUE INCREASE OF $4,000.00. (Primary amendment 4.)

Clarification is that this is for out of City residents only. This is for out of City residents, because in City residents already have a $3 charge and this is a $6 charge for out of City residents. Comment was that the $10 figure could be used since this is an estimate. Page 212 of the packet showing $10 was revised to $4.

NOVAK/YOURKOWSKI - MOVED TO CONSIDER THAT THIS IS INCLUDED IN THE $40,000.00 NUMBER AND NOT SEPARATE THIS OUT SINCE I AM NOT ENTIRELY SURE WE WILL GET THE $40,000.00 THE OTHER WAY AND JUST CONSIDER THE LIBRARY REVENUE AT $40,000.00 TOTAL. (Secondary amendment to Primary amendment 4.)

This provides a more conservative number on Library revenue since this is about charging for computer use and is a more realistic number. The intent of this amendment is to combine the library card fee and the internet use fee together to reach the total of $40,000.00.

VOTE: (Secondary amendment to Primary amendment 4.) YES: NOVAK, WYTHE, YOURKOWSKI, STARK.

NO: McLAY.

Motion carried.

Clarification regarding the amendment that by voting for 3B at zero dollars means that the Council is voting for the concept of increasing library card fees and that the Council is just not adding any dollars to it.

VOTE: (Primary amendment 4 as amended.) YES: McLAY, WYTHE, YOURKOWSKI, STARK, NOVAK.

Motion carried.

WYTHE/YOURKOWSKI - MOVED TO PROCEED WITH THE ACCEPTANCE OF LINE 5 WHICH INCLUDES BOTH PARKING AND ADVERTISING FEES AT THE AIRPORT FOR AN INCREASE OF 6,500 FOR PARKING AND 200 FOR ADVERTISING.($6,700.00) (Primary amendment 5.)

There was no discussion.

VOTE: (Primary amendment 5.) YES: STARK, NOVAK, McLAY, WYTHE, YOURKOWSKI.

Motion carried.

WYTHE/YOURKOWSKI - MOVE FOR THE ACCEPTANCE OF LINE 7 REGARDING SPIT CAMPING FEES WITH THE AMENDMENT OF THE FEE BEING $15.00 PER NIGHT AT A TOTAL OF A PROJECTED $40,000.00 REVENUE. (Primary amendment 6.)

It was noted that the $40,000 was the conservative number provided by the financial manager earlier in the discussion

Councilmember Stark voiced concern that by continually reducing the amount of revenue generated by these fees it makes it harder to reach the expenditure goal.

VOTE: (Primary amendment 6.) YES: YOURKOWSKI, STARK, NOVAK, McLAY, WYTHE.

Motion carried.

YOURKOWSKI/MCLAY - MOVE TO AMEND THE BUDGET TO AMEND THE MILL RATE FOR PROPERTY TAX TO 5.5 MILLS WHICH CREATES $180,000.00 OF REVENUE, I BELIEVE. (Primary amendment 7.)

There was discussion pro and con.

Councilmember Novak voiced appreciation for the discussion and asked for this motion to be withdrawn until after the Council is finished with the amendments listed on page 209.

STARK/WYTHE - MOVED TO TABLE. (Primary amendment 7.)

A motion to lay on the table may not be deliberated.

VOTE:(Table Primary amendment 7.) YES: NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

WYTHE/STARK - MOVED TO DISCUSS LINE ITEM 10 REDUCTION OF LEGAL FEES BY 25,000.

VOTE:(To Discuss) YES: NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

WYTHE/NOVAK - MAKE A MOTION TO ACCEPT LINE 10 REGARDING THE REDUCTION OF LEGAL FEES BY $25,000. (Primary amendment 8.)

There was no discussion.

VOTE:(Primary amendment 8.) YES: YOURKOWSKI, STARK, NOVAK, BECK, McLAY, WYTHE.

Motion carried.

WYTHE/NOVAK - MOVE TO ACCEPT LINE 14 WHICH IS TWO PARTS ONE REDUCING SALARIES BY $87,003 AND SECOND INCREASING PROFESSIONAL SERVICES BY $59,000.00. (Primary amendment 9.)

Councilmember Wythe advised the public that this entails the removal of the $87,003.00 allocated for the hiring of one full time and one part time employee for the Animal Shelter and provides additional funding for the negotiation of a continued contract for these services that are provided by contract at this time.

VOTE: (Primary amendment 9.) YES: WYTHE, YOURKOWSKI, STARK, NOVAK, McLAY.

Motion carried.

Councilmember Wythe noted that by approving 14 that eliminates the need to discuss 15 and 16 essentially the same concept. The next is line item 23, regarding leave cash out for $66,340.00.

WYTHE/STARK - MOVE TO ACCEPT LINE 23 FOR INTRODUCTION. (Eliminates the leave cash out at $66,340.00.) (Primary amendment 10.)

NOVAK/YOURKOWSKI - MOVE TO AMEND TO 35,000.(Secondary amendment to Primary amendment 10.)

Councilmembers Stark and McLay voiced concern with the message this sends to the employees.

Pros and cons were mentioned.

VOTE: (Secondary amendment to Primary amendment 10.) YES: McLAY, YOURKOWSKI, NOVAK.

NO: WYTHE, STARK.

Motion failed, four affirmative votes required to pass a motion.

There was additional discussion about this potentially causing more employees to take more leave.

VOTE: (Primary amendment 10.) NO: McLAY, WYTHE, YOURKOWSKI, STARK, NOVAK.

Motion failed.

WYTHE/YOURKOWSKI - NEXT REDUCTION IS LINE 24 ELIMINATION OF 2% COLA MOVED FOR ACCEPTANCE OF THAT. (Primary amendment 11.)

Councilmember Stark voiced his opinion that this is a bad move, that the COLA has been running between 2% and 3 %, the employees did not get a COLA last year and that at 2% the City is really falling behind. He emphasized that the employees should not be paying for what Council is proposing to give to the non profits.

NOVAK - MOVED TO ADD TO THIS THAT THIS BE REVIEWED AGAIN AT MID YEAR FOLLOWING A PARITY STUDY AND IF FUNDS MERIT IT THE OPTION TO REINSTATE A COLA AT THAT TIME WOULD EXIST, BUT THAT WOULD STILL RESULT IN A 6 MONTH DECREASE WHICH IS HALF OF WHAT YOU SEE IN FRONT OF YOU HERE.

Motion died for lack of a second.

Councilmember Stark voiced his opinion that the Administration can do that without a formal motion of the Council.

Councilmember Wythe officially declared a conflict of interest in that her husband benefits from any salary decisions that are made by the Council.

Mayor Hornaday ruled that Councilmember Wythe has a conflict and excused her from voting.

MCLAY/STARK - MOVED TO OVER RULE MAYOR'S RULING.

Councilmember Novak voiced concern and noted that when the issue is the appearance of conflict it is a good reason to withdraw.

VOTE:(Override the Mayor on ruling) YES: STARK, NOVAK, McLAY.

NO: YOURKOWSKI.

Motion failed, four affirmative votes required to pass a motion.

The Mayor's ruling was not overruled.

There was no further discussion.

VOTE: (Primary amendment 11.) YES: NOVAK.

NO: McLAY, YOURKOWSKI, STARK

ABSTAIN: WYTHE.

Motion failed.

It was noted that the hiring freeze passed under the Consent Agenda (2) and should be added back into the budget as $42,500.00 for six months.

City Manager and Finance Director Baugh responded to inquiry that the fee increases are in the budget, account for a small revenue number and are addressed through Resolutions.

Mayor Hornaday called for a recess at 8:09 p.m. reconvening the meeting at 8:11 p.m.



WYTHE/YOURKOWSKI - FEES FOR TRANSFERRING $10,000 FROM PARKS RESERVES INTO THE FUND BALANCE FOR IMPROVEMENTS OR RESTORATIONS AT HORNADAY PARK. (Primary amendment 12.)

It was noted that this is not an increase it is a transfer.

VOTE: (Primary amendment 12.) YES: WYTHE, YOURKOWSKI, STARK, NOVAK, McLAY.

Motion carried.

WYTHE/ STARK - MOVE TO ACCEPT LINE 11.($354 increase Mayor and Council salary) (Primary amendment 13.)

This only applies to future Councilmembers. Current amount is $50.00 per month.

VOTE:(Primary amendment 13.) YES: STARK.

NO: McLAY, WYTHE, YOURKOWSKI, NOVAK.

Motion failed.

WYTHE/STARK - NEXT ITEM LINE 12 INCREASE IN PROFESSIONAL SERVICES BY $3,000 WHICH WAS PROPOSED AS AN INCREASE FOR FUNDING THE STOCKING OF THE FISHING HOLE. (Primary amendment 14.)

There was some discussion about it being hard to find money to fund this item, that the Council found $7,000.00 earlier this year and that the Manager thought he could find an additional $3,000.00 and could not.

VOTE:(Primary amendment 14.) YES: YOURKOWSKI.

NO: McLAY, WYTHE, STARK, NOVAK.

Motion failed.

It was noted that line 14 was dealt with as a unit regarding the Animal Shelter.

WYTHE/NOVAK - MOVE FOR THE ACCEPTANCE OF LINE 18, $15,000.00 FOR THE CHAMBER. (Primary amendment 15.)

Councilmember Novak noted that there is $15,000.00 right now.

City Manager Wrede confirmed, adding that the $15,000.00 is for Economic Development and not specifically allocated for the Chamber.

WYTHE/NOVAK - MAKE A MOTION TO WITHDRAW IF NEED TO.

VOTE:(Withdraw amendment 15.) YES: STARK, NOVAK, McLAY, WYTHE, YOURKOWSKI.

Motion carried.

Line 18-20 address increasing funding to the Museum by $40,000.00, increase funding to Community Schools by $27,000.00 and one is to allocate funding to the Homer Foundation by $40,000.00.

WYTHE/McLAY - MOVED FOR THE ACCEPTANCE OF 18-20 REGARDING MUSEUM INCREASE BY $40,000.00 FOR FULL FUNDING AT LAST YEAR'S LEVEL. (Primary amendment 16.)

There was some discussion about the funding of line 18-20 and depreciation. It was noted that there is not a non profit organization in this community that provides community service that is not of value to this community. The fiduciary responsibility of this Council is to the core services of the City. Discussion included suggestion to reserve the $182,000.00 for depreciation.

YOURKOWSKI/NOVAK - MOVED TO TABLE DECISION ON THE MUSEUM UNTIL AFTER WE DISCUSS ANOTHER REVENUE OPTION.

A motion to lay on the table may not be deliberated.

VOTE: (Table Primary amendment 16.) YES: NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

YOURKOWSKI/NOVAK - MOVE TO BRING THE PROPERTY TAX MILL RATE BACK ON THE TABLE.

VOTE: (Bring back mill rate) YES: NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

Mil rate increase of .5 mill.

This is a revenue of about $180,000.00.

Councilmember Stark stated that he will only vote for this with the understanding that it will allow funding of the Museum, Community Schools and the Homer Foundation.

Councilmember McLay concurred with Councilmember Stark, however, expressed his opinion that depreciation is most important and that both can be funded. He noted that this amendment will not allow depreciation to be funded at the desired level, but will be a big step in that direction.

Councilmember Novak noted that this increase would allow for the funding, as mentioned, for depreciation at almost $300,000.00.

Councilmember Wythe, with confirmation of the Finance Director, stated that the actual figure is about $255,000.00 for depreciation.

VOTE: (Mil rate increase of .5) YES: McLAY, YOURKOWSKI, STARK, NOVAK.

NO: WYTHE.

Motion carried.

WYTHE/McLAY - MOVED TO BRING BACK 18-20 MUSEUM FUNDING FOR $40,000.00.

VOTE:(Bring back Museum funding) YES: NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

Museum funding at $40,000.00.

There was no further discussion.

VOTE: (Museum Funding) YES: STARK, NOVAK, McLAY, WYTHE, YOURKOWSKI

Motion carried.

WYTHE/STARK - MOVED FOR THE ACCEPTANCE OF LINE 18-20. (Community Schools funding at $27,000.00.) (Primary amendment 17.)

There was no discussion.

VOTE: (Primary amendment 17.) YES: YOURKOWSKI, STARK, NOVAK, McLAY, WYTHE.

Motion carried.

WYTHE/NOVAK - AGAIN LINE 18-20 FOR THE HOMER FOUNDATION, THE RECOMMENDATION IS TO INCREASE BY $40,000.00 WHICH BRINGS IT TO THE FUNDING LEVEL OF THE CURRENT YEAR. (Primary amendment 18.)

There was no comment.

VOTE: (Primary amendment 18.) YES: WYTHE, YOURKOWSKI, STARK, NOVAK, McLAY.

Motion carried.

WYTHE/McLAY - MOVED FOR THE ACCEPTANCE OF LINE NUMBER 25, WHICH ADDRESSES THE FUNDING OF DEPRECIATION AT ANY RESIDUAL BALANCE OF REVENUE PROJECTION THAT MAY BE AVAILABLE. (Primary amendment 19.)

Councilmember Wythe stated that the intent of this is to move any funds that can be moved or any fees that are not currently projected in the current budget would also roll into the depreciation total amount.

VOTE: (Primary amendment 18.) YES: McLAY, WYTHE, YOURKOWSKI, STARK, NOVAK.

Motion carried.

There were a couple of comments regarding rates that will be done under the rate Resolutions.

VOTE: (Main motion as amended) YES: NOVAK, McLAY, WYTHE, YOURKOWSKI, STARK.

Motion carried.

Amendments that passed:

Revenue - 100.035.4607, Library Services and Other Library Services $40,000.00

100.045.4660, Airport Parking Fees $6,500.00

100.045.4660, Airport Advertising Fees $200.00

100.035.4654. Spit Camping Fee increase to $15.00 per night or $40,000.00.

Mill rate increase of .5 mills $180,00.00

Total: $266,700.00

Reductions in Expenditures - 100.100.5210, Mayor and Council Professional Services, reduce by $25,000.00

100.165.5101--5106, Animal Shelter Staff deleted $87,003.00 (Subtracting the Animal Shelter Contract the reduction is $28,003.00)

6 month Hiring Freeze was adopted via Resolution 04-107, delete expenditure of $42,500.00.

Total back to Revenue side: $95,503.00

Total Revenue increase:$362,203.00

Expenditure - 100.165.5210, Animal Shelter Contract increase $59,000.00 (See note above)

151-385, Parks and Recreation - Restoration and Improvements at Karen Hornaday Hillside Park, increase $10,000.00 (transfer not additional expenditure)

100.350.5801, Pratt Museum, increase $40,000.00

100.350.5812, Community Schools, funded $27,000.00

100.350.5830, Homer Foundation, funded $40,000.00

100.5990, Depreciation to be funded with any excess revenues

Total New Expenditure: $107,000.00

To Depreciation: $255,203.00

Total Expenditure increase: $362,203.00

Final Budget figures:

General Fund $8,036,631

Water/Sewer Fund $2,745,732

Port/Harbor Fund $2,904,298

Capital Projects $2,778,033

Internal Service Fund $1,164,720

Total Expenditures $17,629,414

The property tax mill levy is set at 5.5 mills for 2005.

ORDINANCE(S)

None scheduled.

CITY MANAGER'S REPORT

A. City Manager's Report (Updates and Follow Up - Library Funding, Gulf of Alaska Bottom Fish Rationalization, Port and Harbor Projects, Jail Contract, Emergency Generators/Police and Fire, Construction Projects, Budget, RFP/Convention and Civic Center, Griswold vs. City, Contract Fire Inspector and Spit Pathway; December Employee Anniversaries - Mark Robl HPD 20 years, Will Hutt HPD 10 years, Jim Nelson PWD 6 years, John Berelc P/H 5 years, Bryan Hawkins P/H 5 years and Paul Meyer HPD 3 years; Northern Dynasty; Letter of Commendation on the Homer Volunteer Fire Department; Clerk's letter to J. Roberta Harris regarding East Hill/Fireweed Road LID; City of Homer Port and Harbor and Kenai Peninsula Borough Assembly Letter to North Pacific Fishery Management Council about the Ground Fish Rationalization.)

B. Bid Report. (RFP: Professional Consulting Services for a Homer Conference Center Feasibility Study - Proposals are due to the City Clerk by 4 p.m. December 22nd, an extension. There are also two addenda.)

C. Games Permit Report. (2005 Gaming Permit Application - Iditarod Trail Committee, Inc. - filed 11/22/04 and Friends of the Homer Public Library, Inc. -filed 12/01/04. )

Councilmember Stark stated that he wanted to clarify the statement about the initiative remaining in the City Code for two years, noting that it is in effect until amended or removed from the City Code and that it cannot be amended for at least two years.

Councilmember Yourkowski commented on the Jail contract and the possibility of a ten percent increase.

City Manager Wrede advised that he will be clarifying with the Public Safety Commissioner if the increase will affect any of 2004 or if it is just 2005, etcetera.

Through Councilmember Yourkowski City Manager Wrede and Steve Dean, Port/Harbor Director, were commended for all their efforts, having contacted - Seldovia, Seward and the Borough, for organizing the response to the North Pacific Fisheries Management Council and their support regarding the Regionalization for Groundfish Rationalization alternative. He noted how important this is to the City of Homer.

COMMITTEE REPORT

A. Town Center Development Committee. No November meeting, lack of quorum. Meeting Tuesday, December 9th from 5:30 p.m. to 8 p.m. at the Chamber of Commerce.

B. Road Standards Committee. Meeting not scheduled.

C. Beach Policy Committee. Meeting on November 30th canceled, no quorum.

There were no comments.

PENDING BUSINESS

None scheduled.

NEW BUSINESS

A. Consent Agenda Item N. Memorandum 04-153, from City Clerk, Re: Vacate a portion of a 20 foot Alley Between Lots 90 and 95, Dedicated by Oscar Munson Subdivision (Plat HM 3415); within Section 20, Township 6 South, Range 13 West, Seward Meridian, Alaska; KPB File 2004-268; Note: Per petition, a 20 foot Pedestrian and Utility Easement to be granted; Petitioners: Robert J. and Pamela J. Brant of Homer, Alaska. Recommend approval and non veto.

YOURKOWSKI/WYTHE - MOVED FOR THE ADOPTION OF MEMORANDUM 04-153 BY READING OF TITLE.

Councilmember Yourkowski advised that he had pulled this to give him time to review the Planning Commission's vote, which was unanimous. He noted the Planning Commission is very reluctant to vacate easements without just cause and that he had pulled it for clarification on his part.

Councilmember Stark made the following statements about vacating portions of the alley ways and this alley way vacation: Alleys are not good for thorough fares or designed to be thoroughfares. Alleys are designed to provide access to the back of lots and all of the rest of the land in the back of the alley will still have access to the back of their lot, they just won't have through fare. The rest of the alley will still function as an alley.

VOTE: YES: NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

RESOLUTIONS

A. Resolution 04-94(S), Of the City Council of the City of Homer, Alaska Amending the City of Homer Fee Schedule regarding Water Rates. City Manager. Finance. Fiscal Note: Changes addressed in budget.

YOURKOWSKI/STARK - MOVED FOR THE ADOPTION OF RESOLUTION 04-94(S) BY READING OF TITLE.

YOURKOWSKI/STARK - MOVED TO AMEND THE WATER RATES TO CHANGE THE BULK WATER RATE TO $0.0109 PER GALLON.

Councilmember Yourkowski had distributed some information to support his amendment and stated that there needs to be justification for the bulk water fees and that the City had wanted to make this rate the same as a residential customer on the pipe pays and this amendment will reflect that.

VOTE:(primary amendment 1.) YES: WYTHE, YOURKOWSKI, STARK, NOVAK, McLAY.

Motion carried.

Discussion had ceased and the Mayor called for a roll call vote.

Councilmember Yourkowski called a point of order, recognized by the Chair, asking for clarification from the Finance Department regarding impact to the water rate schedule.

Finance Director Baugh responded that if the bulk water rate is changed then the in town rate needs to be increased or all the numbers in the resolution will be wrong and that, without the change to the other figures, there would be a great, big deficit in the water fund next year. The in town rates need to increase to offset this amendment. The amendment eliminates the customer service charge which is billing and some meter charges. Even with the increase that is needed the in town rates will still be reduced from last year.

Discussion continued on the amendment and effects thereof.

STARK/WYTHE - MOVED TO RECONSIDER THE AMENDMENT.

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

Motion carried.

Discussion continued on the amendment.

YOURKOWSKI/NOVAK - MOVED TO TABLE.

A motion to lay on the table may not be deliberated.

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

Motion carried.

B. Resolution 04-95, Of the City Council of the City of Homer, Alaska Amending the City of Homer Fee Schedule regarding Sewer Rates. City Manager. Finance. Fiscal Note: Changes addressed in budget

WYTHE/YOURKOWSKI - MOVED FOR THE ADOPTION OF RESOLUTION 04-95 BY READING OF TITLE.

There was no discussion.

VOTE: YES: STARK, NOVAK, McLAY, WYTHE, YOURKOWSKI.

Motion carried.

New rates as adopted and effective January 1, 2005:

Commodity rate per thousand gallons of water $8.12 Monthly Customer Charge $3.83

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

5/8 inc $16.74; 3/4 inch $25.11; 1 inch $41.85; 1 1/2 inch $83.70; 2 inch $133.91; 3 inch $292.94;

4 inch $527.28; and 6 inch $1,171.74.

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 $48.98 (variable rate ($28.41) based on 3,500 gallons per month plus general service charge ( $16.74) plus monthly customer charge( $3.83 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 $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 $49.49(variable rate $28.41) based on 3,500 gallons per month plus general service charge $16.74 plus septage cost ($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.

C. Resolution 04-96, of the City Council of Homer, Alaska Revising Certain Portions of the Port and Harbor of Homer Terminal Tariff NO. 600. City Manager, Finance, Port and Harbor. Fiscal Note: Changes addressed in budget.

WYTHE/McLAY - MOVED FOR THE ACCEPTANCE OF RESOLUTION 04-96 BY READING OF TITLE.

There was no discussion.

VOTE: YES: YOURKOWSKI, STARK, NOVAK, McLAY, WYTHE.

Motion carried.

Revisions to the tariff as adopted and effective January 1, 2005:

Wait List Fee $27.00 Annual Moorage Fee: 28.32 and $34.19

Dockage $1.86 Cruse Ship Dockage$1.86 and Service Charge $396.00

Freight N.O.S. $7.22, Poles, Logs, cants or cut $3.60, Petroleum Products- Barrel $0.3058 and

Gallon 0.0074, Seafood/Fish Products $3.92, Livestock $9.20, Fowl, Crated $9.20, Boats - Up to 20 Ft each $14.75 and Over 20 Ft per lineal ft $1.45.

Demurrage per sq ft $0.06

Uplands Storage - Open area fishing gear $0.10, Open area non-fishing gear $0.14 and Fenced Storage Yard $0.20

Tidal Grids - 0 - 59' $0.85, 60 - 80' $2.05, 81 - 100' $2.60, 101 - 120' $3.05 and 121 - 140' $3.40

DWD Potable Water - Per Thousand Gallon $31.75, Connect/Disconnect Scheduled $85.00 and Connect/Disconnect Not Scheduled $115.00

Electricity - Reserved Stall Meter Availability Fee $19.25 and Connect/Disconnect Fee $23.00

Transient Vessel Meter Availability Fee $23.00 and Connect/Disconnect Fee $23.00

Non-Metered Power- Daily 110 Volt $9.00, 220 Volt $17.75 and 208 Volt three phase $40.00

Monthly 110 Volt $135.00 and 220 Volt $300.00

Towing inside Harbor - 1/2 Hour $60.00 and 1 Hour $86.00

Pumping Vessel - Elect Pump per day $35.00 and Gas Pump per hour (includes attendant) $60.00

City Personnel per hour $86.00 and per 1/2 hour $43.00

Waste oil over 5 gal- per gal $2.50

Search and Rescue per hour $86.00

Launch Ramp - Per day $12.00 and Season pass $115.00

Beaches - vessels up to 50 ft per foot $1.20 and vessels over 50 ft per foot $1.20

Fish Dock - Vessels blocking cranes per hour $150.00, Unattended vessels $150.00, Annual access $50.00, Card Replacement Fee $15.00, Cold Storage Fee per month $300.00, Two consecutive Months $275.00, Three consecutive Months $250.00

Bait Storage Fee (4x4x4), Per Day $5.00, Per Week $25.00, Per Month $75.00, Ice bid storage $200.00, Crane usage per hour $72.00, Ice per ton $98.00, Seafood wharfage per ton $3.92 and

Freight non seafood per ton $13.25

D. Resolution 04-97, Of the City Council of Homer, Alaska Extending the City Attorney Contract with Perkins Coie for the Period of January 1, 2005 through December 31, 2005 in the Amount of $7,650.00 per Month for Forty Five Hours and Authorizing the Mayor to Execute the Contract. City Manager. Fiscal Note: Budgeted in 100.100.5210. Changes addressed in budget.

WYTHE/McLAY - MOVED FOR THE ACCEPTANCE OF RESOLUTION 04-97 BY READING OF TITLE

There was no discussion.

VOTE: YES: WYTHE, YOURKOWSKI, STARK, NOVAK, McLAY.

Motion carried.

Includes an increase in additional hours from $175 per hour to $185 per hour.

E. Resolution 04-98(S), Of the City Council of the City of Homer, Alaska Amending the City of Homer Fee Schedule. City Manager. Finance. Fiscal Note: Changes addressed in budget.

WYTHE/McLAY - MOVED FOR THE ACCEPTANCE OF RESOLUTION 04-98(S) BY READING OF TITLE.

It was noted that the changes were approved in the budget.

STARK/WYTHE - MOVED TO AMEND TO REFLECT THE FOLLOWING:

1. $5 for half hour charge for the use of the Library Computer from June - September.

2. $6 Annual Charge for Library Card for residents outside the City.

3. Parking fees at airport. Long Term Parking from $2.00 to $3.00 per day and Long Term Parking-Annual Pass from $250.00 to $350.00 per year.

4. Spit RV Camping fee from $10.00 to $15.00.

Finance Director Baugh inquired about the Library Card rate, that he thought it was $10.

Council advised that they had not stated an amount, had done the consolidation of the Library Fees and had not set a rate. There was concurrence that the rate could be $6.00.

Finance Director Baugh requested, on behalf of the Library Board, that the interlibrary loan/priority mail rate be changed from $3.50 to $4.00.

STARK/NOVAK - MOVED TO ADD THAT TO HIS MOTION. (Inter Library loan/priority mail rate be changed from $3.50 to $4.00.)

There was no discussion.

VOTE: (secondary amendment to primary amendment) YES: NOVAK, McLAY, WYTHE, YOURKOWSKI, STARK.

Motion carried.

There was no further discussion.

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

Motion carried.

There was no further discussion.

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

Motion carried.

New fees as adopted and effective January 1, 2005:

ADMINISTRATIVE FEES FOR THE CITY OF HOMER

Lease Application fee $30

Lease Fee $300

Lease Assignment Fee $250

PLANNING and ZONING DEPARTMENT

Zoning Permit

(The following fees, for Zoning Permits have been set by legislative enactments, Resolution 00-17 as authorized by HCC 21.42.060, Resolution 04-12(A)).

Zoning Permits will be based on the value of the construction as follows:

Value of Construction Fee

Multi-Family/Commercial/Industrial $actual cost $250 up to 8 hours,

over 8 hours. $250 plus actual cost

Change of Use fee $50

CAMPING FEES

RV $10/day $15/day

FIRE DEPARTMENT FEES

AMBULANCE:

Basic Life Support $350 $400

Non-Emergency Transport $350 $400

FIRE:

Type 1 Engines (>1,000 gals or 1,500 G.P.M.) $200/hr $ 240/hr $ 2040/day

Type 1 Tenders (>3,000 gals or 1,000 G.P.M.) $250/hr $ 144/hr $ 1224/day

Ladder Truck $ 360/hr $ 3060/day

Medic Unit/Ambulance $ 60/hr $ 510/day

Rescue/Extrication Truck $100/hr $ 144/hr $ 1224/day

Command/Utility Vehicle $50/hr $ 60/hr $ 510/day

6 X 6 ATV $ 25/hr $ 200/day

VOLUNTEER PERSONNEL:

Fire Department IC $25/hr $36/hr

Safety Officer/Officer $36/hr

Driver/Engineer (1 per vehicle) $20/hr $24/hr

Firefighters (Minimum 1 per Tender, 2 per Engine) $15/hr $18/hr

EMT (Minimum 2 per Rescue Medical Unit) $15/hr $18/hr

LIBRARY FEES:

Overdue Items

14-day circulation $0.10/day $0.15/day

Maximum charge $5.00 $6.00

Finance charge none Finance charge of $25 Replacement/Repair of items

Lost items 5.00 7.00 processing fee to

Damaged items 5.00 7.00 processing fee to

Lost or damaged cases, hangup bags, etc. $1.00 $2.00

Lost maps or inserts $5.00/item $10.00/item

Lost out of print items: Actual replacement costs may exceed these amounts.

Alaskana $45 $50.00

Non-fiction $35.00 $40.00

Fiction $25.00 $35.00

Damaged items $0.50/page $1.00/page

$2.00/cover $2.50/cover

Beyond repair Full bindery cost or full replacement cost

plus $7.00 processing charge.

Interlibrary Loan Priority Mail 3.50 4.00

Half Hour Internet use $0 5.00

Library Card-Non resident $0 6.00 per yr

Please Note: To receive a refund on a lost item, patrons must return the item within sixty daysof lost status. Refunds of payment for items deemed valuable to the collection and returned after the 60 day period may be made at the discretion of the Director. AIRPORT FEES:

Advertising $50.00 $75.00 per year size 9 x 4

$75.00 $100.00 per year size 9 x 7

$100.00 $125.00 per year size 9 x 11

Advertising with Direct Dial Phone $300.00 $350.00 per year

Long Term Parking $2.00 $3.00 per day

Long Term Parking-Annual Pass $250.00 $350.00 per year

Vending Machine Space $20.00 $30.00 per month

PUBLIC WORKS DEPARTMENT:

Subdivision Agreement Fee Schedule

Agreement Application, Plan Review, Inspection, and Warranty Period Deposits

A developer shall pay the City's actual cost associated with the reviewing, approving, coordinating and inspecting improvements required to be completed under a subdivision agreement. The City's cost shall include, but is not limited to, administering the agreement, plan checking, surveillance, and administrative overhead. Prior to initiating each phase of the subdivision approval process, a deposit shall be paid. Deposits shall not bear interest. The deposits shall be held in a separate account and disbursed only as authorized by this fee schedule. The deposits are described below:

1.Subdivision Agreement Application: Upon submitting an application agreement, the Developer will provide a $300 deposit.

2. Subdivision Improvement Plan Review: Upon submission of plans for review and approval, the Developer will provide a plan review deposit of .5% of the estimated cost of improvements or $300, whichever is greater.

3. Construction Inspection: Prior to issuance of a notice to proceed with construction to the Developer, the Developer shall pay a deposit toward the City's costs based upon the estimated cost of the improvements to be constructed under the subdivision agreement as follows:

Estimated Construction Cost Deposit

$10,000 or less $300

Over $10,000 up to $50,000 4% of the estimated costs

Over $50,000 up to $150,000 3% of the estimated costs

Over $150,000 up to $500,000 2.5% of the estimated costs

Over $500,000 $13,000

After the City finds the subdivision improvements meet City specifications, it shall determine its costs to date. If costs (plus any deposit required under subsection 4 below) exceed the total deposits received, the Developer shall pay the balance to the City prior to final acceptance of the improvements. If the total deposits exceed the costs, the City shall refund the balance (less any deposit required under subsection 4 below) to the Developer.

4. Initiation of Warranty Period: Prior to acceptance of completion by the City of the undertaking by the developer, the Developer shall also pay a deposit toward the City's cost incurred during the warranty period under the subdivision agreement in the amount determined by the Public Works Director, but not to exceed $2000

If at any time the City finds its costs exceed the total deposit received, the City may periodically bill and receive payment from the Developer for those actual incurred costs in excess of the amount of deposit.

F. Resolution 04-101, Of the Homer City Council Approving and Adopting the City Administration's Recommendation Regarding the Provision of Services at the New Homer Animal Shelter. City Manager. Fiscal Note: $87,003.00 for employee salaries and benefits. Postponed on November 22, 2004.

STARK/BECK - MOVED TO ADOPT BY READING OF TITLE RESOLUTION 04-101 (Main motion is on the floor as Postponed on November 22, 2004 to December 13th or later, after action on the Budget.)

There was no discussion.

VOTE: NO: ALL OPPOSED.

Motion failed.

G. Resolution 04-111, Of the Homer City Council Tentatively Approving the Sale of Four City Owned Lots on North side of Hazel Avenue West of Lucky Shot Street with $340,000.00 of Proceeds Going to Library Building Fund and Directing the City Manager to Secure an Appraisal of said Lots forthwith. Stark. Fiscal Note: Cost of appraisal not defined.

STARK/McLAY - MOVED FOR THE ADOPTION OF RESOLUTION 04-111 BY READING OF TITLE.

Councilmember Stark stated that the whereas clauses spell out the reason for this Resolution and, as the City Manager spells out in his Memorandum, any revenue can not be considered in the budget. The Resolution is to get the appraisal process going.

WHEREAS clauses: Four city-owned lots on the north side of Hazel Avenue west of Lucky Shot Street, legally described as Lots 8, 9, 10, and 11, Glacier View Subdivision No. 17, were allocated for library and trail purposes by Resolution 03-72 on 27 May 2003, and

Said lots are not necessary for library purposes, but are prime commercial lots zoned CBD with a paved road abutting them and curb and gutter and sewer and water stub-outs, and

The library fund-raising efforts included the value of said lots in an approximate amount of $85,000 apiece, or an aggregate amount of $340,000, in funding proposals as a City contribution (the lots to the east where the library will be built have an approximate aggregate value of $510,000), and

The cash value of $85,000 per lot is needed for library construction and any excess beyond $85,000 per lot is needed for the General Fund, and   

Whether the $340,000 will be needed for library construction will not be known until bids are received, but in any event the $340,000 can at the least reduce the amount of the $2,100,000 of borrowing approved by the voters, and

Sale of the lots will result in increased business activity including increased sales tax, property tax, and sewer and water fund receipts, and

Reservation of a trail easement along the north 20 feet of said lots will allow a satisfactory trail connection between Poopdeck Street and the library, and

HCC 18.12.020 requires an appraisal prior to authorization for sale, and

  Because of the time it takes to get an appraisal in relation to the date of bid award for construction, time is of the essence in authorizing acquiring an appraisal.

The Now Therefore states: That the Council hereby tentatively approves the sale of Lots 8, 9, 10, and 11 Glacier View Subdivision No. 17 with a 20' trail easement on their north side and directs the City Manager to forthwith secure an appraisal and submit to this Council an appropriate ordinance authorizing said sale by public outcry auction.

 

Councilmember Novak voiced strong objection to the Resolution.

Discussion continued. There was recommendation to postponed and discuss this with the Land Allocation Plan.

WYTHE/ - MOVED TO TABLE.

Motion to table died for lack of a second.

NOVAK/YOURKOWSKI - CALLED FOR THE QUESTION.

Mayor Hornaday ruled for more discussion.

Discussion continued pro and con.

VOTE: YES: STARK, McLAY.

NO: YOURKOWSKI, NOVAK, WYTHE.

Motion failed.

H. Consent Agenda Item E. Resolution 04-102, Of the City Council Amending the Homer Advisory Planning Commission Procedures Manual and Bylaws. City Manager. Planning. Recommend adoption.

YOURKOWSKI/WYTHE - MOVED TO APPROVE RESOLUTION 04-102 BY READING OF TITLE.

Councilmember Yourkowski noted that the Council had received some valuable comments from Frank Griswold.

YOURKOWSKI/NOVAK - MOVED TO POSTPONE UNTIL WE GET FEED BACK ON THOSE COMMENTS FROM THE PLANNING DEPARTMENT.

There was no further discussion.

Mayor Hornaday stated that he would take this as a motion to table, there was no objection. Therefore, the motion is to table as stated by the Mayor.

VOTE: YES: NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

RESOLUTION 04-94(S) -

WYTHE/YOURKOWSKI - SO MOVE TO TAKE RESOLUTION 04-94(S) OFF THE TABLE.

VOTE: (TAKE FROM THE TABLE) YES: NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

Finance Director Baugh reported the following changes to go with the amendment:

Water Rate Schedule with amendment:

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 $4.55 $5.25

Monthly Customer Charge $4.75 $4.12

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

Meter size General Spit

Service Charge Service Charge

5/8 $20.08 $20.51

5/8 $19.73 $19.73

3/4 $30.11 $30.77

3/4 $29.59 $29.59

1 $50.19 $51.28

1 $49.32 $49.32

1 1/2 $100.38 $102.56

1 1/2 $98.65 $98.65

2 $160.60 $164.10

2 $157.84 $157.84

3 $351.32 $358.98

3 $345.26 $345.26

4 $646.16 $646.16

4 $621.48 $621.48

6 $1,435.91 $1,435.91

6 $1,381.06 $1,381.06

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 $30.77 $30.77

5/8" 20,000 gal $29.59 $29.59

5/8" 70,000 gal $51.28 $51.28

5/8" 70,000 gal $49.32 $49.32

3/4" 70,000 gal $51.28 $51.28

3/4" 70,000 gal $49.32 $49.32

Bulk water sales. A commodity charge of $4.55 $5.251,000 gallons of water shall apply to bulk water sales provided by tanker truck or fire hydrant plus an additional surcharge of $3.47 $5.65 per 1,000 gallons of water in order to offset debt service and capital replacement and customer service costs. An additional surcharge of $3.50 per 1,000 gallons of water will be added to water picked up at the public works yard in order to offset capital replacement costs of the delivery system at the yard.

Discussion ensued.

YOURKOWSKI/McLAY - MOVED TO AMEND TO REFLECT THE NEW RATES. (Primary amendment 2 or Secondary amendment to Primary amendment1)

Discussed pro and cons.

VOTE: (Primary amendment 2 or Secondary amendment to Primary amendment1) (3)

YES: WYTHE, YOURKOWSKI, NOVAK, McLAY.

NO: STARK.

Motion carried.

VOTE: (main motion as amended) YES: YOURKOWSKI, NOVAK, McLAY, WYTHE.

NO: STARK.

Motion carried.

COMMENTS OF THE AUDIENCE

Audience Comments upon any Matter.

Nancy Lord, resident and Library Advisory Boardmember, expressed her shock and awe regarding the additional Library fees that had not been discussed by the Library Advisory Board. She noted that, if she understands correctly, the Council raised fees tonight to charge $5 per one half hour to use computers in the Library and also fees for Library cards of $6 per person who lives outside the City limits. She pointed out that these issues have been discussed every year that she has been on the Library Advisory Board and that the board has knowledge of how these things work in other communities and that the Board would appreciated it if the Council would consult with them. She emphasized that the Board's capacity is advisory, that they put in a lot of volunteer time and think that they have something to advise. She commented on the fees not being discussed, apparently, before this afternoon, that the Board had no knowledge that this was coming from the Council nor did the public and no one had an opportunity to have any input into this. She stated that Councilmember Stark attended their last Board meeting and that he did not mention these fees. She voiced appreciation for the fact that the Council has been under a lot of pressure to balance the budget and that she appreciates the fact that they wanted to come up with money for the Museum, Community Schools and the non profits, which are also important to her. She told the Council that the Library Advisory Board did forward a new fee schedule, adding that they worked very hard at increasing fees to try to take some pressure off of the City. Some of the fees increased 100% and some 50% in other cases and that they were just really making an effort there and referred to the letter/memo from the Library Director explaining why the internet fees are problematic. According to Ms. Lord the Library Director was unaware that the Council was considering library card fees. Ms. Lord objected to the way in which this was done, that if the Council had allowed the Board to have some input and then Council decides otherwise that is fine and the Board can live with that. To do something with out seeking the Board's advise and without having good information is really not appropriate. Ms. Lord voiced her opinion that there is quite a bit of smoking mirrors here. She commented on being unsure how much money the Council associated with these fees, telling the Council that they will probably find that when charging for internet use people will not pay and will go elsewhere, out of town or do something else. Ms. Lord suggested that people will not pay for cards, that what other communities have found that when there is a charge for cards one member of the household gets a card and they all use it and then there is no accountability and it does not raise much money. She voiced her opinion that neither of these fees are going to raise much money for the City and requested that the Council reconsider and rescind these fees. She told the Council that they have created a false source of income and thanked them for their efforts and that the Board would appreciate it if next time the Council would consult with them first. She thanked the Council.

Frank Griswold voiced appreciation that the Council retained ownership of the lots next to the Library, since it seems that is supposed to be part of Town Square. He advised the Council that in this way they will be able to control what is going on, since they don't want any conflicting use next to a $7 million Library. He voiced sorrow about having missed the earlier discussion about Bylaws and Procedures, that this is too bad that it wasn't on the radio and won't be in the Council minutes. He noted that these Council meetings are running so efficiently that perhaps the Committee of the Whole meetings may no longer be needed. He relayed that some claim that this type of meeting, such as the previous meeting of the brown bag luncheon are inappropriate and possibly in violation of Open Meetings laws. He pointed out that the City Attorney is recognized as an authority on the Open Meeting Act and it would be good to get his opinion on the legality of the Committee of the Whole, and, more importantly, that without that meeting the Council could have everything on the record. He thanked the Council.

Leonard Welles stated that he wanted to make a few comments on the raising of the property mil tax levy, that he is sorry to see that the Council increased this on such short notice without any public input. He emphasized that the public was not apprized of the amendment, therefore not able to comment. He commented on the water rates, that he gathers that the bulk rate and the City rate are now equal and voiced agreement. He addressed the comment that the bulk water rate is non City residents, noting that, unfortunately, in this City there are many City residents that have to use bulk rate, because the City has not built an infrastructure that delivers water to a fairly good sized portion of City residents. He advised the Council that he did find the discussion interesting of what the water rates were and that the cost of a gallon of water did not seem to be clear in that in one case it is what one pays for gallon coming out of the tap and that the Council, for budgeting purposes, included all the other things. He voiced appreciation that the Council took care so that a gallon of water costs the same.

Roger Davis voiced his feeling, as an enlightened society, that the thing that causes grief are the things that ought to be charged for and the things that make us brighter out to be paid for. Therefore, the people that go to the library should be paid and the ones that go to the bars, that cause most of the grief ought to be the ones being charged. He suggested that it may be a little backward, maybe not and thanked the Council.

Sue Mauger stated that she is not sure she can follow that comment, adding that the logic was beautiful. She said that she did want to say that these increases in fees are significant to the City's philosophy of the library. She recalled one of her memories as a child was that of getting her own library card and being to take out her own books. She voiced a concern that this option may have been cut down for a lot of families and expressed the same concern with regard to the internet usage. Ms. Mauger told the Council that she really hates for the Library to become something that is not available to everyone regardless of their income. She commented that she looks forward to more discussion of this on January 10th when the Library Advisory Board meets with the Council during the Worksession. (4) She thanked the Council for their consideration of the Pratt Museum, Community Schools and the Homer Foundation.

COMMENTS OF THE CITY ATTORNEY

City Attorney Tans was not present.

COMMENTS OF THE CITY CLERK

City Clerk Calhoun wished all a Merry Christmas and Happy New Year.

COMMENTS OF THE CITY MANAGER

City Manager Wrede wished all a Merry Christmas, and commended and congratulated the Council on the work they did tonight for facing and for making the hard decisions with great decorum.

COMMENTS OF THE MAYOR

Mayor Hornaday advised that he has been invited to have lunch with the Governor on Thursday with several other Mayors and that he hopes to go. He noted the commendation in the packet to the Homer Volunteer Fire Department with regard to some children' issues. He, noting having served on other Councils, commended this Council and emphasized that this is an outstanding Council. He pointed out that this Council went through three meetings, starting at 4 p.m., adding that their energy and integrity continued on to the very end. He thanked them and wished all a Merry Christmas.

COMMENTS OF THE CITY COUNCIL

Mayor Pro Tem Yourkowski commented on receiving an email about cutting the trees down by the Post Office on the west side to accommodate a satellite dish and that comments are to be directed to the Post Master, Michael Moore, at 235-6129.

Councilmember Novak voiced appreciation of everyone's contribution to the budget process and that he feels that the Council is working together to a better end. He said, "Merry Christmas and Happy New Year."

Councilmember Wythe stated that the budget process went far better than she had anticipated. She told Ms. Lord that there was no intention, at least on her part, to slight the Library Advisory Board in any way. She stated that she is not familiar with all of the protocols as far as promoting Library fees and all of that. She commented about living where internet Café s are frequented and the charge of $5.00 for three minutes with recognition that a Library is a different environment. She noted that the Council did a lot of work at the Committee of the Whole today and that she can see that continuing this meeting is quite beneficial to the Council. She addressed the Open Meeting concern that the Committee of the Whole is an open meeting and that the public is invited to attend. She hoped everyone has a Happy Holiday, expressing thankfulness that the Council is not having a meeting next week.

Councilmember Stark stated that when he ran for Council, two and a quarter years ago, he was death on the Committee of the Whole, feeling that the public did not have a chance to participate. He stated that he has since found that the Committee of the Whole meetings are extremely valuable, and are a part of Council's deliberative process. He reiterated that these meetings are noticed to the public, although not covered by the electronic media. He voiced disappointment that there were not the votes to proceed with the sale of the four lots, because the Library people do not have the money to go to bid, this would have provided over a third of a million dollars to do that, if the project is delayed the cost will probably go up a third of a million dollars, and if the money was not needed it would have resulted in a savings to the citizens on the loan amount. He stated that he thinks this a real shame particularly in that Council agonized over nickels and dimes on the budget. He expressed his thought that the Council just let this slide on by, that the land will just sit there with no use and no income for who knows how long.

Councilmember McLay voiced appreciation for everyone's comments, that there was a lot of discussion, lot of disagreement and that through it all no one got upset, everybody was amiable and spoke their positions very well. He noted that all agreed to disagree on some items and agreed to proceed and to make this all happen. He emphasized that the budget is a very big item for the Council and that they worked very hard on it. He expressed his appreciation for all the work the Council has done together, that they have done a good thing, solved the problem and can now move forward.

Councilmember Stark stated, real briefly, that he intends to find in the City finances the amount of money necessary to bring the mill rate back to its present position of 5 mills prior to the deadline, informing the Borough on June 30th, to maintain that mill rate.

ADJOURNMENT

There being no further business to come before the Council the meeting was adjourned at 9:33 p.m. The next Regular Meeting is scheduled for January 10, 2005 at 7 p.m. and the next Committee of the Whole is scheduled for Monday, January 10, 2005 at 4 p.m. and includes a Joint Session with the Library Advisory Board. All meetings scheduled to be held in the Homer City Hall Council Chambers located at 491 E. Pioneer Avenue, Homer, Alaska.

_____________________________________





MARY L. CALHOUN, CMC, CITY CLERK



Approved: ________________________





City Clerk's Office, clerk@ci.homer.ak.us, 235-3130.

1. The written comments from Mr. Griswold were copied for the Mayor, Council, staff and public.

2. Resolution 04-107.

3. Robert's Rules of Order Revised - 10th Edition - Page 313 Failure to Call up the Motion to Reconsider. The reconsidered amendment and main motion, after being taken from the table was reconsidered in part, the vote on the primary amendment was not called up. With the making of the additional amendment the same end is met and therefore, there is no harmful effect due not being called up and primary amendment 1. is killed.

4. Not a worksession is a joint session with the Library Board during the January 10, 2005 Committee of the Whole, beginning at 4 p.m.