Session 03-25, a Special Meeting of the Homer City Council was called to order at 4:01.5 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: BECK, FENSKE, LADD, NOVAK, STARK, YOURKOWSKI.

STAFF: CITY MANAGER WREDE

CITY CLERK CALHOUN

FINANCE DIRECTOR BAUGH

FIRE CHIEF PAINTER

CHIEF OF POLICE ROBL

LIBRARY DIRECTOR HILL

CITY PLANNER MCKIBBEN

PUBLIC WORKS DIRECTOR MEYER

AGENDA APPROVAL

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

The agenda was approved by consensus of the Council with the following changes: Substitute Resolution 03-150(S) with Memorandum 03-207, Manager's proposal for balancing the budget with attached backup information, Resolution 03-154(S) with Memorandum 03-210, Resolution 03-159 with Memorandum 03-211, Resolution 03-161(S), and public comments on budget, port tariff, and Ordinance 03-70. Clerk requests that the minutes be deleted off the agenda and placed on January 12, agenda.

PUBLIC COMMENTS UPON MATTERS ALREADY ON THE AGENDA

Public comments upon anything on the agenda except public hearing Item Ordinance 03-70(S).

Clancy Hughs advised that for ten years he has been an air taxi pilot on Beluga Lake and wanted to comment about Beluga Lake. He noted that air taxi is under Part 135 in the Federal Aviation Regulations and these are significantly different then for regular pilots and that he wanted to comment from that view point about some safety issues on the lake. He mentioned that prior to the air taxi service he practiced medicine for thirty years and was a class 1 aviation medical examiner for the FAA, which included accident investigation. He voiced his opinion that the primary safety issue is the ramp that has been considered for many years, emphasizing the extreme difficulty getting any planes off the lake and up to the hanger where maintenance can be done out of the rain, where there is light and where parts are not being lost into the water. He advised that in an air taxi operation, a Part 135 operation, every hundred hours, about every three weeks in the summer time, an extensive inspection has to be done, which requires removing all of the access plates on an airplane. He expressed his belief that doing this inspection down on the lake is a safety issue, a safety issue from the stand point of the passengers. He reported that there are seven Part 135 operators on the lake who are extremely good at what they do and have a safety record that stands in striking contract to the rest of the state of Alaska: Zero accidents and no fatalities. He told the Council that he thinks they need a better shake for being able to maintain their planes, that there are two otters on the lake now, and maybe more. He pointed out that the number of passengers that are flying are increasing every year and that he thinks there are more passengers flying off the lake then out of the airport. He affirmed that there is more revenue generated off the lake, adding that the thing that is significant is that the revenue that comes in off the lake stays in Homer. He noted that most of the planes cannot get to the hanger without taking the wings and part of the tail off, running them up the causeway and down Ocean Drive, which is done twice a year when the planes are put on the lake and when the planes are taken off the lake. He informed the Council about another issue with the transients coming to the lake, that with the rock work done on the causeway it is no longer possible or easy to tie up and this is the only place for transient parking. Mr. Hughs stated that going up to the other end of the lake is a near impossibility. He suggested that some sand or gravel be placed to restore the area for transients. He commented about the greater significance of a lack of fuel availability on the lake, except by special arrangement. He apprized the Council that transient planes will come in heavy or leave here disappointed that they were not able to get fuel and run the added risk of not having fuel, which is also a significant safety issue. Mr. Hughs expressed his concern that this is not a desired situation with a designated seaplane base and an airport for which Homer is proud. He cited a lack of access for fuel trucks and lack of a licensed fuel truck and suggested that the City might have some interest, he voiced concern for a solution and advised that the state had some suggestions. He responded to some questions of the Council: It might be possible to tax passengers, gain revenue from the City selling fuel, and that the dates that the state has down in the plan for solving some of the safety issues are too far in the future. He emphasized from an environmental standpoint that there are oils and etcetera that do end up in the lake from doing maintenance on the lake.

Ken Day advised the he and his wife own and operate Inlet Air Service on Beluga Lake, and that before that he flew for Kachemak Air Service for eight years, before that flew other float planes off of Beluga Lake and that he has been in Homer for some 16 years operating float planes off Beluga Lake every day since then. He relayed history of the roadway:

In 1985 the road from the lake to the airport was approved by DOT, the money was spent on other things and the road went by the wayside.

In 1990 DOT formed an Airport Advisory Committee, of which he was part of, and they got the road approved again and were told that as soon as they paved the airport the road would be put in, however, went by the way side due to lack of funding.

Then, the deal with the raptors roosting in the trees.

When the Critical Habitat was set up on the east end of the lake there was an agreement between all parties that there would be no more blockades to all of these improvements, but yet this raptor thing has held up the improvements for, now, ten years.

He echoed Mr. Hughs' comments regarding safety. He recalled landing on the end of the Spit, on wheels, where all the lumber is on the back side and taking the plane to the crane, put on the floats and put them in the water and then, in the fall, back out of the water and take off on the back. He advised that when the lumber was placed they started taking their wing tips off and going down the road for some twelve years now. He confirmed that this is a big factor in maintenance and a lot of revenue. He advised that he is also an aircraft inspector and that he does maintenance in the winter time and his son does maintenance all year round, as do other maintenance shops at the airport. He told the Council that if they had the road from the lake to the airport it would increase the revenue to Homer by enhancing the businesses at the airport. He reported that many times throughout the summer people pull up to his dock and ask where they can get maintenance done and when he tells them about doing it on the lake they decide to try to make it to Anchorage or Kenai, resulting in lost revenues. He emphasized that thousands of dollars of tools are lost into the lake and oil does get into the lake. He voiced his opinion that the road to the airport is the most important thing in the master plan and then transient parking along the causeway. He suggested that the proposed dock in the master plan be relocated from the corner so that it does not block off the whole south east corner of the lake, because the way it is set up no one can use that corner, which is the safest location in winds.

John Velsko commented on the Port Tariff Revisions and noted he had submitted a letter to the Council through the City Clerk.

Under rule 34.18b proposal to raise the fee from $26.40 per foot to $27.48 per foot. This is excessive and is about a 40% in the last four years.

He voiced his opinion that the harbor is being run pretty well and is healthy, Port/Harbor Director Abbott is looking for new revenue sources and watching out for the resources the harbor has and making sure these are not being siphoned off elsewhere. He expressed his belief that most boat owners would agree to some increase, but a rate at twice the rate of inflation is excessive. He urged the Council to hold the rate increases to 2%.

Under rule 34.28, the small boat ramp, is where the Council is missing the boat on earning some extra revenue.

He stated that he spends a lot of time at the harbor and at times the parking of the boat trailers takes up a lot of space for an $11 fee, and these people get cleaning tables, restrooms, fresh water and access to fuel. He reported that at Anchor River there is a charge of $5 just to park in a parking lot with a garbage can. He suggested that if the City raised these revenues they could probably raise another $30,000.00 to $40,000.00 a year, adding that the Port Harbor Director felt those figures were probably right. He suggested the parking be tied in with the user fees to eliminate a lot of non sense. He stated that tying in with the user fees hits the people who are causing all the problem. He noted that the commercial fleet or the pleasure boaters come to Homer on an irregular basis, but the charter fleet sometimes puts ten vehicles in the parking per one boat. He further suggested maybe tying the parking fee into the moorage fee and that if someone is paying $165 to go fishing they probably would not worry about a couple of extra bucks for parking. He told the Council that he appreciates all of the work. He urged the Council to get behind Councilmember Fenske's proposal to look into a service area for the non profits, inserting that he has been here nearly 30 years and this thing is getting way of hand. He advised that he likes to go to a play once in a while himself, however, there are a lot of non City residents, and sometimes more, attending these events. He voiced his opinion that the non residents need to chip in. He wished everyone a nice Christmas. He responded to some questions of the Council regarding his written comments and suggested that most of the people using the load and launch ramp are, although locals, non City residents. He noted that much of the commercial fleet is gone during the summer and those slips are used for transients, which generates more money for the City and the commercial fleet should not be penalized. He restated that it is $5 to park at Anchor Point, adding that it is also $5 at Deep Creek, just to park, and that he thinks it is $35 to launch a boat at Deep Creek and $40 to launch a boat at Anchor Point.

Robert Purcell, non resident and property owner inside the City, advised that he parks an airplane at the airport and that he would like to testify on Council's support of the Airport Improvement Plan and encourage the Council's strong support. He voiced his opinion that a lot of people fail to fully comprehend the economic impact and benefit of the airport, including the float plane base, in terms of the revenue generated for this community. He noted that people who fly in or who take the tours tend to put quite a bit of money into the local economy. He shared his concerns regarding the safety issues associated with Beluga Lake, adding that there is no good safe access for emergencies onto Beluga Lake and that the response can take as much as 45 minutes. He emphasized that within this plan is the concept of that roadway, launch ramp and housing the rescue boat at the lake, thus improving emergency response time significantly. He advised that all of the improvements in the plan are safety related and need to go substantially further. He suggested that the state needs to take the responsibility to make that airport much friendlier by providing simple things such as bathrooms and other facilities, there are no phones, access is awkward, and there are no basic facilities. He urged the Council to encourage the state to accelerate the plan. He responded to some questions of the Council.

Mayor Cushing informed all that he and the Council had instructed the Manager to put together Resolution 03-160 on behalf of all of these concerns.

Councilmember Yourkowski arrived at 4:32 p.m.

Marilyn Sigman, Director of the Center for Alaskan Coastal Studies, voiced support of non profit funding in the 2004 Budget. She commented that the Center for Alaskan Coastal Studies has been a non profit or operating as a community based organization for 21 years and was very fortunate to receive City funding for the last two years through the Homer Foundation, now a grant process. She advised that under the competition they have to demonstrate that they are in fact solvent and relatively stable, as can be in a non profit world, and that they do serve the residents of the City of Homer. She reported that for 2001 and 2002 they served about five thousand people and twenty five percent of that participation is within the City limits. She reported that last year they increased their participation to six thousand people, one third of which was within City limits, and does not count the Wynn Nature Center, that there were another two thousand that visited that center this year. Therefore, she said, two thirds of their use occurs within City limits or at the Wynn Nature Center. She relayed that the Center for Alaskan Coast Studies takes their responsibilities as the City's neighboring land owner very seriously. She pointed out that the non profits in this community serve some very real needs and that just as the City has been hit by budget cuts, the community has been hit by some government budget cuts; the seniors longevity bonus, cuts to social services and the schools. She commented that it was rather startling news that to the non profit world that they now qualify for world development grants based on a percentage of people within a property line and a percentage of the kids who qualify for free lunches at the schools. She stated that the non profits who have received City funding the last few years, that she is familiar with, do serve the seniors, teens, schools, and specifically mentioned the work of the Bunnell Street Gallery and the Pratt Museum. She commented about non profits' service in terms of land management; Kachemak Heritage Land Trust, Center for Alaskan Coast Studies, who owns 140 acres in the City's watershed that they manage for protection of the watershed. She pointed out that there is a real multiplier effect from these dollars and that in 2003 five percent of their operating costs actually came from the City grant passed through the Homer Foundation. She elucidated the way the funds are used for operations and that for every dollar within their operating budget they raise $2.25 in additional funding for educational programs, research, and stewardship activities. She reported that the Center for Alaska Coastal Studies expends most of their fund in the City of Homer, that they employ two full time staff and ten people part time or seasonally all who live here and many own property in side the City. She informed the Council that operating costs are the most difficult type of funding for non profits to raise and are strategically incredibly important, because it shows that the community does support what they are doing and that what they are doing is important. She emphasized that this is something that funders look at very seriously. Ms. Sigman expressed her opinion that this small community is extraordinarily generous, but everybody is seeking funding from individual people for the new library, for the hockey rink, for land trails, the animal shelter, etc. She advised that there are a lot of partnerships out there that are leveraging funds from private sources, leveraging funds from the City, and from Federal sources. She stated that the partnership between the City, the non profits, and all the community members is very important, adding that the community members donate thousands and thousands of dollars to help meet the community's needs, and donate thousands and thousands of hours of their skills. She voiced her opinion that the reality is that times are going to get tougher. She encouraged the Council to give serious attention to sustaining the partnership.

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 unapproved meeting minutes of November 24/December1 and December 8, Regular Meetings. Recommend approval. Deleted under agenda approval and

placed on the agenda for January 12th meeting

B. Resolution 03-150(S), Of the City Council of Homer, Alaska Awarding the Contract for Professional Wetlands Delineation for the City of Homer and the Bridge Creek Watershed to the Firm of Kenai Watershed Forum of Homer, Alaska in the Amount of $64,400.00 and Authorizing the City Manager to Execute the Appropriate Documents. Planning. City Clerk. Fiscal Note: Project Budgeted in Acct. 101.770. Total budget is $71,800.00, proposal is $64,400.00, the remainder of $7,400.00, will be used as a contingency fund for this project. Recommend adoption.

Memorandum 03-207, from Planning as backup.

C. Resolution 03-151, Of the City Council of Homer, Alaska, Renaming Hopkins Way to Jakes Little Fireweed Lane within the City of Homer. Planning. Recommend adoption.

Memorandum 03-208, from Planning as backup.

D. Resolution 03-152, Of the City Council Confirming the City Manager's Appointment of Dean Baugh as Acting City Manager. City Manager. Recommend adoption.

E. Resolution 03-153, Of the City Council of Homer, Alaska Designating Signatories of City Accounts and Superseding Any Previous Resolution so Designating. Finance. City Clerk. Recommend adoption.

F. Memorandum 03-209, from Airport Terminal Manager, Re: Era Aviation, Inc. Lease Renewal. Recommend approval.

LADD/BECK - MOVED FOR THE ADOPTION AND/OR APPROVAL OF THE RECOMMENDATIONS OF THE CONSENT AGENDA AS JUST READ.

VOTE: YES: NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

PUBLIC HEARING





A. Ordinance 03-70(S), Of the City Council Extending Sections 1 through 5 of Ordinance 03-25(S)(A) and Sections 1 through 3 of Ordinance 03-33(S)(A) to April 30, 2004, Retail and Wholesale Development Impact Statement and Standards. Novak. City Manager. (First Reading December 8, 2003, Public Hearing and Second Reading December 15, 2004.)

Letter from Fred Meyer.

Al Waddell began with reading a letter to the Mayor, Council and City dated today from Fred Meyer:

Fred Meyer Stores Inc, maintains its interest in developing a store in your City. We have worked diligently with your honor, the honorable Council, City staff, Chamber of Commerce, and residents to put together a proposal that will respond to your identified concerns. We are convinced that if the moratorium was lifted and the public allowed the right to review our proposal, they would support it whole-heartedly. Our proposal and its' architecture is based on human scale and is designed to be compatible with the surrounding vicinity. It is sighted on commercially zoned property within the Central Business District, a City designated area bounded by Pioneer Avenue, Lake Street, and the Sterling Highway. Traffic flow should remain the same, since we are locating within the Central Business District. Parking will be provided according to the Code in order to avoid impacts to surrounding streets and uses. Because emergency services are currently provided to this area, there should be no increase needs for, or impacts of these services. Costs associated with City services such as police, fire, and emergency, should not increase due to the project location. In fact, sales tax revenues from this project can help defray the costs of these services. The significant amount of landscaping proposed will provide environmental benefit. Sight lighting will be designed to minimize glare and avoid off sight light spill. The vast majority of the employees will be hired within the local community. Due to the project scale and our lack of history in stores of this size, our employment estimate will range from 50-100 full and part time positions. City revenues will increase due to added sales tax revenues. Local businesses should benefit from the increase and local customers spending their sales dollars within the Homer economy, as opposed to traveling to Soldotna or Anchorage to spend their dollars there. Because we are located in a commercially zoned area, there will be no impacts to residential uses. The City has the tools it needs to review this project. There is an existing conditional use permit for buildings over 8,000 square feet. This permit gives ample opportunity for public input through the public hearing process. Please vote down Ordinance 03-70(S) and allow the public their right to review our proposal. Sincerely, Charles A. Mosley, Senior Real Estate Entitlement Manager.

He acknowledged the City's budget constraints with the loss of revenues on the Spit and the recent City purchase of property for about $380,000.00, which is going to need to be filled. He pointed out that Fred Meyer is going to build an approximately $15 million building, that will generate property tax and the business will generate sales tax. He advised that he has little bit of sour grapes in reviewing the Planning and Zoning meetings, and that for the first three months there's been virtually no discussion on this situation, not since June, even in the last meeting, when they ended at 9:25 p.m. He commended the Council for staying till midnight or longer to get their job done. In response to Council inquiry he advised that has met with Ron Alderfer regarding the Homer Hockey Rink project. He reported that Fred Meyer has indicated, to him, that if allowed to come on to the property that they will take care of the drainage that comes off of Lake Street. He advised the Council of the water spring on the back of Waddell Way that needs to be diverted and there is absolutely no sewer to the property, the sewer is on the other side of Lake Street. He informed the Council that Fred Meyer has the ability to possibly burrow underneath Lake Street or underneath the Sterling Highway, which is estimated between $37,000.00 and $45,000.00. Fred Meyer has indicated that they would, in turn, if they are permitted to build their store where they want to, pay for the boring underneath of the bypass, hook up the sewer, run it all the way up Waddell Way, and any place that the Hockey Association felt that they needed it to end. He interjected that this is probably a cost of, at least, $100,000. He advised of Fred Meyer's indication that they would also take care of the entire parking on the Waddell's six acres. He stated that, in other words, all of the Waddell property down would be leveled for once and for all, and seeded, planted and paved, courtesy of Fred Meyer. Mr. Waddell suggested that this would be a very viable situation to the public, adding that he is now kind of in a hot seat here, because Fred Meyer has a sixty year lease with him. He voiced his belief that the population of the City of Homer, from the people that have commented to him, are in favor of Fred Meyer. Mr. Waddell asserted that if this waits until April 30th it ruins this building season; however, he advised, there's a good chance that if they're allowed to start by April the 15th, by this time next year that store will probably open and be bringing in tax revenue, and creating jobs, which are sorely needed.

NOVAK/STARK - MAKE A MOTION TO ADOPT ORDINANCE 03-70(S) FOR SECOND AND FINAL READING BY READING OF TITLE ONLY.

There was quite a bit of discussion about the work of the Planning Commission and whether or not to extend the deadlines. It was noted, as is reflected in the Ordinance, that sections 1 through 5 of Ordinance 03-25(S)(A) are of a temporary nature and expire on January 29, 2004 and that Sections 1 through 3 of Ordinance 03-33(S)(A) are of a temporary nature and expire on January 13, 2004. The Memorandum from the City Planner, dated December 4, 2003 advised that the Planning Commission has essentially completed work on Traffic Impact Analysis, Landscaping, Lighting, Development Activity Plan, Storm Water Plan, Review/Revision of Performance Standards and has yet to complete work on Fiscal/ Economic Impact Analysis, Architectural Standards, and the Citizen Participation Plan. There is a certain amount of time needed for the public hearing process with the Commission and the Council before an Ordinance can be adopted by the Council. The schedule in the Ordinance is as follows:

January 30th, release of Planning Commission public hearing draft to City Manager and City Council.

February 27th, Planning Commission passes Plan for Development Standards for Large Retail and Wholesale Development to City Manager and City Council.

March 8th, Introduction of Plan for Development Standards for Large Retail and Wholesale Development by City Council with scheduled work session and public hearing.

March 22nd, City Council work session and public hearing on Development Standards for Large Retail and Wholesale Development.

Councilmember Ladd, for the record: "Just want to make sure, for the record, that we are clear that the memo which came to us did not come from the Planning Commission, it came from the Planning Department. The memo of December 4, 2003, the subject Development Standards for Large Retail and Wholesale Development, from Beth McKibben, City Planner. It did not provide any kind of draft report at all, it simply listed various topical areas that they have essentially completed and those that need further work. And the complete memo was half a page. So, to me that is not a complete report. I don't know what is going on in terms of what has been presented to us. I have been to some of those meetings and I have seen some of the draft documents; however, there is a lot of work that needs to be done with that and that it needs to be done, and if necessary that the City provide some kind of a worksession for the Planning Commission to get this work done, pay them to come in and do that, we need to do that. At this point in time though, as stated before, I can't support extending the deadline."

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

NO: LADD.

Motion carried.

YOURKOWSKI/BECK - MOVED TO RECONSIDER.

There was no discussion.

VOTE: YES: NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

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

NO: LADD

Motion carried.

ORDINANCE

A Ordinance 03-69(A)(S), Of the City Council of Homer, Appropriating Funds for the Calendar Year 2004 for the General Fund, the Water-Sewer Fund, the Port/Harbor Fund, Debt Funds, Capital Reserve Funds (Conditional Expenditures). City Manager. Finance Director/Treasurer. (First Reading November 24, 2003, Public Hearing December 8, 2003, Second Reading December 15, 2003, effective January 1, 2004.)

Letter from Kathy Smith.

STARK/BECK - MOVED FOR THE ADOPTION OF ORDINANCE 03-69(A)(S) BY READING OF TITLE.

The Manager, Finance Director and others involved were thanked for the budget preparation and for the pretty good solution to the revenue and expenditure needs. It was noted that with the new software there will be quarterly and monthly reports of revisions. Thereby, enabling City business to be conducted in a more business like manner. This is a win/win balanced budget.

Councilmember Beck for the record: "I want to go on record as recommending that this Council meet in the first quarter of next year to really analyze where this community is going financially and how we can do some serious financial planning for the community. I think we all recognize we are on a tuft of growth in this community that could quickly over take us, without some very careful planning. While this budget may serve us well for this next year, I don't think there is going to be increased revenues coming in from the state any time soon. I think a proactive look at where we are going and how we are going to get there would be good for us to deal with pro actively in the beginning of the year rather than wait until next year's budget."

Agreement was voiced for Councilmember Beck's recommendation. Desire was expressed for the City Manager and Finance Director to put together some scenarios of possible projected revenues and needs as growth takes place.

LADD/STARK - MOVED TO AMEND TO ADD SECTION 7: THE CITY COUNCIL SHALL COMPLETE A COMPREHENSIVE REVIEW REGARDING THE ADEQUACY OF REVENUE SOURCES TO MEET PRESENT AND FUTURE BUDGET EXPENDITURES. IF PRINCIPLE SOURCES OF REVENUES ARE DETERMINED INADEQUATE THEN CITY COUNCIL WILL PROPOSE BY JULY 1, 2004 A PREDICTABLE, LONG TERM, ANNUAL REVENUE GENERATING PROCESS THAT ACCOMMODATES EXPENDITURES.

Discussion included recognizing the need and intent of the Council to look at some alternative revenue generating sources. Council expressed the desire to steer away from property taxes and sales taxes if possible. It is important to assess fiscal direction. It was noted that any tax issue for the ballot needs to be decided in time for the Regular Municipal Election. The importance of the amendment is to commit the Council to fiscal planning.

FENSKE/YOURKOWSKI - MOVED TO AMEND TO DROP THE WORDS "PRESENT AND FUTURE" SO THAT IT WOULD REFLECT THE BUDGETARY NEEDS.

There was no discussion.

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

Motion carried.

There was no further discussion

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

Motion carried.

Concern was expressed regarding the Annual Moorage Fee, which has an increase of between 4% and 5% why the increase was not spread out more to all of the other fees. Ramp fees remain low, yet, according to Mr. Velsko, the ramp fees could generate greater revenue.

Finance Director Baugh advised that the increases coincide with the CPI, huge insurance increases and workman's comp, Alaska is looking at another increase in workman's comp insurance at a reported 25% increase and there have been some huge increases. Many of the other rates are not big money makers and many of the insurance hits are on harbor use, such as the special required marina insurance.

Mayor Cushing noted that the City Manager will be reviewing rates after the first of the year and will review and examine the rates and bring back to the Council on a case by case basis. He responded to Council query, that yes the Council could increase some rates and decrease other rates, particularly on the rates that are set by Resolution.

Council discussed funding non profits and that these functions are a part of many cities, in Homer the non profits take care of these functions. Perhaps the City needs to redefine non profits.

Staff interjected clarification regarding an amendment needed to facilitate the Manager's recommendation and Council's direction.

Mayor Cushing called for a recess at 5: 44 p.m. for the forming of an amendment and reconvened the meeting at 5:52 p.m.

LADD/BECK - PROPOSE AN AMENDMENT TO THE ORDINANCE WOULD BE THAT AMENDMENTS 4, 6, 7, 8, AND 9 AS REFLECTED ON PAGE 17 WOULD BE ACTED UPON OR INCLUDED.

4. $26,000 departments were asked to reduce budgets at certain level for each department to contribute to funding the $26,000.00 as requested by the Council, to fund the new Planning Position.

6. $17,443 - to increase the clerk assistant's salary from .68 position to full time, includes benefits and salary.

7. ($47,953) Reduction in depreciation: Acct. 114 - reduce $10,000.00; Acct. 150 reduce $8,977.00; Acct. 160 reduce $8,976.00 and Acct. 170 reduce $20,000.00.

8. $26,000 replaces Amendment 4.

9. fee increases ($165,808)

4314.015 Taxi permits increase $1,000.00

4314.015 Chauffeurs License increase $1,250.00

4314.015 Annual Safety Inspection $10,000.00

There was no discussion.

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

Motion carried.

There was brief comment.

LADD/NOVAK - SO MOVE TO ADD AMENDMENT NUMBER 5. ADDING FIVE THOUSAND DOLLARS FOR HANGING THE MURAL (1)BACK INTO THE RESERVE FUND.

Mayor Cushing and City Manager Wrede clarified that amendment 5. is the $5,000 on page 25 of the agenda/packet supplement that goes back to Parks and Recreation Reserves.

There was no other discussion.

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

Motion carried.

Councilmember Stark commented on the employee merit and longevity steps, as mentioned last year. He noted that Step N. which brings the salary of those in Range 25 to in excess of $84,000.00, clarified that this is not a cost of living increase, those being separate to this. He questioned if someone in their 14th step is really gaining that much as far as their knowledge.

Finance Director Baugh noted that part of this is not a gaining of knowledge, but a retaining of the knowledge. He advised that the cost of living is requested every two years at 2% and often has not been requested.

Council discussion ensued:

City of Homer salaries are sort of mid range for a City of our size and is a reasonable thing to do.

Difference in the two steps M and N is $1.18 per hour.

Retainage of the knowledge and expertise is an important thing.

There is a draw to those cities that pay higher salaries.

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

Motion carried.

New amount is in bold:

General Fund                          $7,088,010            $7,510,500

Water/Sewer Fund     $2,428,576 $2,428,579

Port/Harbor Fund                    $2,768,504

Capital Projects $2,359,973 $2,354,973

Internal Service Fund             $  911,520

 

Total Expenditures                $15,556,583           $15,974,076

RESOLUTIONS

A. Resolution 03-154(S), Of the City Council of Homer, Alaska Revising Certain Portions of the Port and Harbor of Homer Terminal Tariff No. 600. Port/Harbor. Finance. Effective January 1, 2004, or as soon as filed with Federal Maritime Commission.

Memorandum 03-210, from Finance Director, regarding error in the schedule, reason for the substitute.

FENSKE/BECK - MOVED FOR THE ADOPTION OF RESOLUTION 03-154(S) BY READING OF TITLE.

Councilmember Ladd for the record: "Like for this Council, as stated that in the first part of next year we will be looking these fees and all aspects of permitting and licensing. That we come back and look at the launch rates, which are $11 per launching, which have not changed. We've widened the window in which we can collect those fees, but we have not changed the actual fee itself."

Finance Director advised that this fee is changed every couple of years so that the fee increases a dollar so that people are not having to drop change into the iron ranger.

Council asked that the moorage fees also be reviewed.

VOTE: YES: NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.



Rule 2003 Current Rates Proposed 2004 Rates

34.18b Annual Moorage Fee: 26.40 27.48

34.19 Dockage 1.76 1.80

Cruse Ship Dockage 1.76 1.80

Cruse Ship Service Charge 375.00 383.75

34.20 Freight N.O.S. 6.83 7.00

Poles,Logs,cants or cut 3.38 3.50

Petroleum Products Barrel 0.2852 0.2966

Gallon 0.0069 0.0072

Seafood/Fish Products 3.70 3.80

Livestock 8.06 8.90

Fowl, Crated 8.06 8.90

Boats Up to 20 Ft each 13.39 13.75

Over 20 Ft per lineal ft 1.34 1.40

34.22 Uplands Storage Open area fishing gear 0.10 0.10

Open area non-fi11shing gear 0.14 0.14

Fenced Storage Yard 0.20 0.20

34.23 Tidal Grids 0 - 59' 0.68 0.82

60 - 80' 1.95 1.99

81 - 100' 2.44 2.50

101 - 120' 2.86 2.93

121 - 140' 3.23 3.30

34.25 - SERVICE CHARGES, SUBSECTION 245, page 48:

Change "(d) SPECIAL SERVICES:" to "(e) SPECIAL SERVICES:"

And then add this new section as the new (d):

"(d) REGULATED GARBAGE HANDLING FEE: $750 per round trip for certificated truck pick up plus $85.00 per one hundred pounds. Regulated garbage, as per the Code of Federal Regulations, is garbage from foreign going vessels that contains, or that is suspected of containing, food scraps or food waste."

34.25 DWD Potable Water Per Thousand Gallon 30.00 30.75

Connect/Disconnect Scheduled 80.00 82.00

Connect/Disconnect Not Scheduled 106.00 108.50

Electricity Reserved Stall Meter Availability Fee 18.00 18.50

Connect/Disconnect Fee 21.60 22.25

Transient Vessel Meter Availability Fee 21.60 22.25

Connect/Disconnect Fee 21.60 22.25

Non-Metered Power Daily 110 Volt 8.50 8.75

220 Volt 16.75 17.25

208 Volt three phase 37.50 38.50

Monthly 110 Volt 124.65 127.50

220 Volt 279.90 268.50

Towing inside Harbor ½ Hour 53.50 54.75

1 Hour 80.25 82.00

Pumping Vessel Elect Pump per day 32.50 33.25

Gas Pump per hour (includes attendant)53.50 54.75

City Personnel Labor per hour 80.00 82.00

per ½ hour 40.00 41.00

Waste oil over 5 gal- per gal 2.16 2.25

34.27 Search and Rescue per hour 80.00 82.00

34.28 - BOAT LAUNCH RAMP FEES Launch Ramp Per day11.00 11.00

Season pass 110.00 113.00

34.28 - BOAT LAUNCH RAMP FEES, SUBSECTION 260(b) on page 49:

Add the words, "to launch" after the words, "Vessels shall be charged $11.00 per day" and before the words, "from the public launch ramps." in the first sentence and add this phrase after "public launch ramps" . . . "from April 1 through October 15."

In the second paragraph of this same subsection 260(b) on page 49: change the date "May 1" to"April 1", and change the date "September 30" to"October 15".

34.29 Beaches vessels upto 50 ft per foot 1.10 1.13

vessels over 50 ft per foot 1.10 1.13

34.30 - FISH DOCK, SUBSECTION 275, Page 53:

On the category of Freight NOS, non-fish cargo - add the following phrase after "Fishing gear is free from wharfage", "Except as otherwise provided under a lease agreement, contract or operating agreement with the City of Homer, ice brought onto Fish Dock to be loaded into totes or transferred to boats at the dock, shall be charged wharfage at the Freight NOS rate, unless this is ice that was purchased from the City Ice Plant."

In the category of "Seafood Wharfage/Fish Product", add the following to the right of the page, after the words " . . . regardless of species.":

"Bait in quantities greater than one ton that is loaded onto a vessel at Fish Dock, shall be charged seafood wharfage."

34.30 Fish Dock Annual access 46.00 47.25

Card Replacement Fee 10.00 10.25

Crane usage per hour 64.00 67.92

Seafood wharfage per ton 3.70 3.80

Freight non seafood per ton 12.40 12.75

B. Resolution 03-155, Of the City Council of the City of Homer, Alaska Amending the City of Homer Fee Schedule Regarding Water Rates. Finance. Effective January 1, 2004.

YOURKOWSKI/BECK - MOVED FOR THE ADOPTION OF RESOLUTION 03-155 BY READING OF TITLE.

There was discussion regarding the rates being too high, not much can be done since the costs are too high. This is operated as a utility (enterprise fund) and revenues have to match the costs. There was concern expressed regarding the Spit Surcharge.

Finance Director Baugh advised that this was inadvertently left in and should be deleted.

LADD/BECK - TO DROP SPIT SURCHARGE.

There was no discussion.

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

Comment was made that this is also in Resolution 03-156.

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

Motion carried.

Commodity rate per thousand gallons of water $6.63 $8.27

Monthly Customer Charge $3.68 $3.82

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

Meter size General Spit

Service Charge Service Charge

5/8 $15.12 $28.80

5/8 $16.93 $16.93

3/4 $22.69 $43.21

3/4 $25.40 $25.40

1 $37.81 $72.01

1 $42.33 $42.33

1 ½ $75.62 $144.02

1 ½ $84.66 $84.66

2 $120.99 $230.44

2 $135.45 $135.45

3 $264.66 $504.09

3 $296.30 $296.30

4 $476.39 $907.35

4 $533.34 $533.34

6 $1,058.63 $2,016.34

6 $1,185.20 $1,185.20

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 $42.01$49.69 (variable rate ($23.21 $28.94) based on 3,500 gallons per month plus general service charge ($15.12$16.93) plus monthly customer charge ($3.68 $3.82) 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 $4.34per 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 $42.67 $50.21(variable rate($23.21 $28.94) based on 3,500 gallons per month plus general service charge $15.12 $16.93 plus septage cost ($4.34 $4.34) per month for each residential or residential equivalent discharger. Kachemak City shall be responsible for payment to the City of Homer.

C. Resolution 03-156, Of the City Council of the City of Homer, Alaska Amending the City of Homer Fee Schedule Regarding Sewer Rates. Finance. Effective January 1, 2004.

FENSKE/LADD - MOVED FOR THE ADOPTION OF RESOLUTION 03-156 BY READING OF TITLE ONLY.

FENSKE/ - MOVED TO AMEND TO TAKE OUT SPIT SERVICE CHARGE SEEING HOW IT'S THE SAME AS THE GENERAL SERVICE CHARGE WE CAN JUST ELIMINATE THAT CATEGORY UNLESS IT MESSES UP YOUR BOOK KEEPING.

Finance Director Baugh advised that in this case it is left in to show that the charges are all the same.

The motion was withdrawn. There was no second and the motion had not been recognized.

There was no discussion.

VOTE: YES: NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

Commodity rate per thousand gallons of water $4.31 $4.55

Monthly Customer Charge $5.93 $4.75

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

Meter size General Spit

Service Charge Service Charge

5/8 $20.08 $33.13

5/8 $20.51 $20.51

3/4 $30.11 $49.70

3/4 $30.77 $30.77

1 $50.19 $82.83

1 $51.28 $51.28

1 ½ $100.38 $165.67

1 ½ $102.56 $102.56



2 $160.60 $265.07

2 $164.10 $164.10

3 $351.32 $579.84

3 $358.98 $358.98

4 $632.37 $1,043.71

4 $646.16 $646.16

6 $1,405.26 $2,319.35

6 $1,435.91 $1,435.91

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 $30.11 $49.70

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

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

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

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

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

Bulk water sales. A commodity charge of $4.31 $4.551,000 gallons of water shall apply to bulk water sales provided by tanker truck or fire hydrant plus an additional surcharge of $3.38 $3.47 per 1,000 gallons of water in order to offset debt service and capital replacement and customer service costs.

D. Resolution 03-157, Of the City Council of Homer, Alaska Extending the City Attorney Contract with Perkins Coie for the Period of January 1, 2004 through December 31, 2004 in the Amount of $7,650.00 per Month for Forty Five Hours and Authorizing the Mayor to Execute the Contract. City Manager.

LADD/YOURKOWSKI - MOVED FOR THE ADOPTION OF RESOLUTION 03-157 BY READING OF TITLE.

Councilmember Yourkowski pointed out that the rate/contract is the same as last year.

VOTE: YES: NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

Mayor Cushing allowed further comment regarding the high legal fees.

E. Resolution 03-158, Of the City Council Amending The City Manager's Contract. Council.

NOVAK/BECK - MOVED TO ADOPT OF RESOLUTION 03-158 BY READING OF TITLE ONLY

There was a brief comment.

LADD - MOVED TO AMEND TO THE CONTRACT TO PLACE $3,000.00 IN THERE TO BRING OUR MANAGER' UP TO $85,000.00.

There was positive comment regarding the City Manager, his abilities and demeanor.

Mayor Cushing noted that there was good review by the Council.

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

Motion carried.

City Manager Wrede was thanked for all of the work that he puts into the community and that Homer is very fortunate to have a City Manager of his caliber.

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

Motion carried.

F. Resolution 03-159, Of the City Council of the City of Homer, Alaska Amending the City of Homer Fee Schedule. Finance City Manager. Effective January 1, 2004.

Memorandum 03-211, from Finance Director.

FENSKE/LADD - MOVED FOR THE ADOPTION OF RESOLUTION 03-159 BY READING OF TITLE.

There was no discussion.

VOTE: YES: NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

ADMINISTRATIVE FEES FOR THE CITY OF HOMER

Annual Taxi Permit $75

Chauffeurs License $75

Annual Safety Inspection commercial vehicles $100

Notary $ 2.00 $5.00

CITY CLERK

Copies of meeting (audio) tapes $2.50/ea $10.00

Fire Works Permit, HCC 5.24 $5 $25.00 (apply 30 days in advance) per exhibit plus bond for $500 or liability insurance, must have

Facility use fee by non-governmental agency $30.00

PLANNING and ZONING DEPARTMENT

Zoning Permit

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

Value of Construction Fee

$0 to $5,000 $ 25

$5,001 to $25,000 $ 50

$25,001 to $50,000 $100

$50,001 and over $125

Single Family/Duplex $180

Multi-Family/Commercial/Industrial $actual cost

ROW Permit - minor $5 $90

major $ 25 $90

Driveway Permit........ $ 15 Residential $45

Commercial $60

Long $105

Wetlands Permit(General) $ 50 $100

Publication Fees

Comp Plan large $ 15 $20

Zoning Map - sm$ 7 $5 lg $14 $25

Road Maint Map $5

Zoning Ordinance - HCC 21 $ 5 $15

Sign Permit - $ 25 $50

Variance - $100 $250

Conditional Use Permit Processing Fee $250

Single Family/Duplex $200

Multi-Family/Commercial/Industrial

$500 for uses less then 8,000 sq ft

$1,000 for uses 8,000sq ft to 15,000 sq ft

$5,000 for uses 15,000 sq ft and larger

Rezone - $100 $300

Contract Rezone - $100 $300

Flood Hazard Permit $75

Preliminary Plat Processing Fee $150 $200 (Resolution 96-13)

Bridge Creek Watershed Permit

Single Family/Duplex $180

Multi-Family/Commercial/Industrial $250

Conditional Use Permit $1,000

Mitigation Plan $150

LOCAL IMPROVEMENT DISTRICTS (LIDs)

Application Fee $100

Bill Fee $3.00 per bill

Administration Fee

0-500,000 5%

over 500,000 $25,000 plus 2.5%

WATER and SEWER FEES

Water Permit - $250

Sewer Permit - $200

SEWER FEES

Sewer Connection and Extension Permit fee $200

Single Family/Duplex $255

Multi-Family/Commercial/Industrial $330

WATER FEES

Water connection fee $250.00

Single Family/Duplex $300

Multi-Family/Commercial/Industrial $375

Water or Sewer main extension/private development/subdivision agreement$actual cost

G. Resolution 03-160, Of the Homer City Council Supporting the Alaska Department of Transportation and Public Facilities Homer Airport Master Plan Preferred Alternative Presented at the December 4th Public Meeting in Homer Alaska. Mayor. City Council.

STARK/BECK - MOVED FOR THE ADOPTION OF RESOLUTION 03-160 BY READING OF TITLE.

There was discussion regarding Resolution 03-160 and 03-161(S). Resolution 03-161(S) includes all of the information in Resolution 03-160 and 03-161. The transient parking was noted as being an area of concern. The deadline for input is December 19, 2003.

YOURKOWSKI/STARK - MOVED TO SUBSTITUTE RESOLUTION 03-161(S) TO REPLACE O3-160.

It was noted that item 10. addresses some of the Council's concerns regarding a cargo apron separate from commercial passenger areas, a noise level study, and the need for careful review prior to filling wetlands.

Councilmember Yourkowski voiced his desire to withdraw the motion.

Councilmember Stark objected.

There was further discussion regarding the differences in the two Resolutions.

VOTE: (primary amendment 1.) YES: STARK.

NO: BECK, FENSKE, LADD, YOURKOWSKI, NOVAK

Motion failed.

NOVAK/LADD - I WOULD LIKE TO ADD ITEM 5. ON 03-161(S) AS AN ADDITIONAL WHEREAS UNDERNEATH WHEREAS NUMBER 3. IN RESOLUTION 03-160.

5. Lack of road access between the lake and the airport creates significant problems for float plane operators, including lack of fuel availability, difficulty of routine maintenance, and difficulty in moving planes in the Spring and Fall when switching from floats to wheels;

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

Motion carried.

YOURKOWSKI/ - LIKE TO AMEND THE NUMBERED ITEMS TO INCLUDE A NUMBER 7. WHICH WOULD READ: NEED FOR REVIEW OF RESERVED LOCATION FOR A CONTROL TOWER IN LIGHT OF FILL REQUIRED AND ITS CURRENT USE.

There was a brief clarification.

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

Motion carried.

There was no further discussion.

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

Motion carried.

H. Resolution 03-161(S), Of the Homer City Council Recommending Approval of Alaska Department of Transportation and Public Facilities' Preferred Alternative Dated 4 December 2003 of its Homer Airport Master Plan Study. Stark

Mayor Cushing asked if there was any objection to suspending the rules and withdrawing this item from the Agenda.

There were no objections from the Council.

COMMENTS OF THE AUDIENCE

Audience comments upon any matter.

Heather Beggs, Pratt Museum, thanked the Council and City Manager for all of their hard work during the budgeting process, for passing the 2004 budget as amended, for supporting the non profits on behalf of the Pratt Museum and as a new City resident. She advised that she has seen the extreme value of the services provided by Community Schools Program, by the Chamber of Commerce and the amazing work of the Homer Foundation, which supports so many other groups.

COMMENTS OF THE CITY ATTORNEY

City Attorney Tans was not present.

COMMENTS OF THE CITY CLERK

City Clerk Calhoun thanked the Mayor and Council for the amendment to the Clerk's budget, for giving the Boss a raise and wished them a Merry Christmas.

COMMENTS OF THE CITY MANAGER

City Manager Wrede voiced appreciation about the discussion for a long range fiscal plan for the City, that this will be a useful exercise and that he looks forward to going through this with the Council. He also thanked the Council for their vote of confidence and thanked the Council on behalf of the staff and all of the Department Heads. He advised the Council that when he accepted this job one of the things that he inherited was a great set of Department Heads, therefore, when the Council thanks him they are thanking all of the staff, adding that he is a true believer that you are only as good as the people around you.

COMMENTS OF THE MAYOR

Mayor Cushing thanked the Council and administration for the cooperation on the budget process and thanked all the public that weighed in on the process. He stated that he liked what was done on the airport support tonight, that this has given the City a document that went along with the preferred alternative with some input and in line with what the public has asked. He commented about the moorage with the rock along the causeway and that he believes that this is an item that is getting to the Department of Transportation (DOT) very clearly. He commented that it is rather ironical that until the City of Homer spoke up the haul road was not in the long term master plan and that it had, in fact, been forgotten and that it was the City of Homer, off of the internet, that got it into the plan that DOT presented to the public when they were in Homer. He encouraged everyone to keep talking to the state as individuals. He wished all Happy Holidays.

COMMENTS OF THE CITY COUNCIL

Councilmember Beck thanked the Council for their hard work on the budget. She thanked John Crowder for his editorial last week in the Homer Tribune and that it was much appreciated.

Councilmember Ladd thanked the City Manager and Budget Director (Dean Baugh) for bringing to the Council a budget and working with them to keep the budget balanced with the amendments the Council wanted in the budget, especially the depreciation and fleet reserve. He noted that the budget is down to the $2 million fund reserve in the general fund and therefore, they need to really work hard at long range fiscal planning in the next several months. He reminded everyone about getting something in on the Kenai Peninsula Borough Comprehensive Planning that maybe the Council can put together some ideas and work on these at the next Council meeting. He wished all the staff of the City a Merry Christmas and Seasons Greetings. He congratulated the Junior High Girls for Wynning the Borough Championship in Basketball, adding that this is an outstanding feat for Homer.

Councilmember Yourkowski stated that he would like to put the Borough Comprehensive Plan on the agenda, somewhere, for the first meeting in January. He commented about the Manager saying that he is only as good as the people around him and pointed out that he is the Manager's neighbor.

Councilmember Stark said Merry Christmas, Happy New Year and let's go home.

Councilmember Novak stated that the budget process has been, as his first one, interesting, that he is impressed with the process and real pleased with the results. He noted that he can see that there is a plan to address it in the future, to stay on target and keep the general fund where it is wanted to be as far as the final balance. He advised the Council that it has been a positive experience, with regard to the budget, that he is real happy to see that there is some additional time to deal with the moratorium, to deal with the planning issues with the design standards. He emphasized that he is really looking forward to next year when they address some things that are on their plate that have not been finished up this year. He concluded by saying Happy Holidays and thank you.

Councilmember Fenske voiced agreement with everything that has been said so far, except the part about the birds.

ADJOURNMENT

There being no further business to come before the Council the meeting was adjourned at 6: 46 p.m. p.m. The next Regular Meeting is scheduled for Monday, January 12, 2004 at 7 p.m. The next Committee of the Whole is scheduled for Monday, January 12, 2004 at 4 p.m. The meetings are scheduled to be held in the Homer City Hall Council Chambers located at 491 E. Pioneer Avenue, Homer, Alaska.





_____________________________________

MARY L. CALHOUN, CMC, CITY CLERK



Approved: __________________________

1. This is the mural on the wall at the Old Middle School in the area of the Skateboard Park.