Session 01-01, a Regular Meeting of the Homer City Council was called to order at 7:35 p.m. by Mayor 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: FENSKE, KRANICH, LADD, YOURKOWSKI.ABSENT: COUNCILMEMBER: MARQUARDT, CUE (excused)
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 with Substitute Ordinance 01-01(S) to replace Ordinance 01-01 on the Consent Agenda.
PUBLIC COMMENTS UPON MATTERS ALREADY ON THE AGENDA
There were none.
RECONSIDERATION
CONSENT AGENDA
(Items listed below will be enacted by one motion. If separate discussion is desired on an item, that item may be removed from the Consent Agenda and placed on the Regular Meeting Agenda at the request of a Councilmember.)
A. Homer City Council special meeting unapproved minutes of December 18, 2000.
Recommend approval.
B. Memorandum 01-01, from City Clerk, Re: Liquor License, Package Store, Renewal for the Grog Shop, Homer Liquor and Wine Co., Patel's, Patel's #2, and Rum Locker. Recommend approval and non-objection.
C. Memorandum 01-02, from City Clerk, Re: Liquor License Renewal for Minato Japanese Restaurant (Public Convenience). Recommend approval and non-objection.
D.(Approved under the Agenda Approval Ordinance 01-01(S) , Of the City Council of Homer, Alaska, Accepting Certain Tax Foreclosed Property Deeded to the City by the Kenai Peninsula Borough and Determining the Disposition of Parcel 179-280-33. Council. City Clerk. (First Reading 01/08/01, Public Hearing 01/22/01, Second Reading 02/12/01.) Recommend adoption for first reading.
Memorandum from the City Manager as backup.
E. Ordinance 01-02, Of the City Council of Homer, Alaska, Accepting and Appropriating the ADEC Grant in the Amount of $72,000 for the 1.0 MG Storage Reservoir Design, Appropriating the City Match of $30,857 from the Water Reserve Fund, Accepting the Terms and Conditions of the Grant and Authorizing the City Manager to Execute the Appropriate Documents. City Manager. PWD. (First Reading 01/08/01, Public Hearing 01/22/01, Second Reading 01/22/01.) Recommend adoption for first reading.
Memorandum from the Public Works as backup.
FENSKE/KRANICH - MOVED FOR APPROVAL AND/OR ADOPTION OF THE RECOMMENDATIONS OF THE CONSENT AGENDA.
No discussion.
VOTE: YES: FENSKE, LADD, YOURKOWSKI, KRANICH.
Motion carried.
Mayor Cushing called for a recess at 7:40, reconvening the meeting at 7:50.
VISITORS
A. Minerals Management Service, Re: Requests for Comments on new proposed 5-year Outer Continental Shelf Leasing Program. Paul Strang. Tom Warren, Section Chief for Leasing Activity Section, Chuck Minette, Science Group.
The MMS is the federal agency of the Department of the Interior that manages the nation's oil, natural gas and other mineral resources on the OCS (Outer Continental Shelf), and collects, accounts for, and disburses over $5 billion yearly in revenues from offshore mineral leases and onshore mineral leases on federal and Indian lands. Mr. Warren listed the major functions of the agency: 1). Assessing the oil and gas potential in federal waters off the State of Alaska, specifically from 3 miles seaward of the beach. He explained that the first 3 miles from the beach is State waters. 2) Environmental studies. 3) Assessing effects that activity on the OCS may have on the human and coast environment. 4). Leasing, which is the act of actually issuing leases to qualified companies that might operate on the Outer Continental Shelf. 5). All activities that are approved by the MMR are also regulated by MMR. Mr. Warren explained the steps in that process are to 1) Assess the resource and 2) Obtain public comments and industry interest in what the MMR does. Currently, a 5 year leasing program for 2002-2007 is under development which will include an environmental impact statement which assess the effects of the program. Additionally, following the approved 5-year program the MMR prepares an environmental impact statement on each and every sale that is being considered and prepares the terms the companies must operate under should they obtain a lease in a sale. The lease sale is a one-day function where it is actually an auction to the highest qualified bidders of tracts on the Outer Continental Shelf for oil and gas exploration and development. The MMR regulates and inspects any activity that may result in exploratory work, for development and for production. Receipts of the MMR are derived from the cash bids, lease sales and rentals and royalties much like the State of Alaska on any production. Mr. Warren stated that the purpose of the presentation today is to acquaint the public with the 5-year leasing program development process and solicit public comments.
The introductory presentation gave the outline of the MMR's responsibilities under the OCS Lands Act (federal law)as-
Mr Warren showed a map of the OCS areas on the coasts of the lower 48 . He showed 4 on the west coast, 4 on the east coast, and 3 in the Gulf of Mexico which is where the greatest OCS activity occurs. He then showed Alaska waters divided into 14 areas saying the greatest activity is in the Beaufort Sea and the Chukchi Sea. He pointed out that the Cook Inlet/Shelikof Strait area is unofficially divided into two areas between Lower Cook and Shelikof Strait. Mr Warren explained that the OCS Lands Act requires a secretary to maintain a 5 year lease schedule to include the size, the number and location of sales and leasing activity. Therefore, MMR is inviting public comments on two categories of the deliberative system; the leasing schedule itself and the environmental impact.
The time line to develop the plan is as follows:
December 12, 2000................ Federal Register Notice
April 2001.............................. Issue Draft Proposed Program (60 day comment period)
July 2001................................ Issue Proposed Program & draft EIS (Environment Impact Statement) (90 day waiting period).
January 2002............................ Issue Proposed Final Program & Final EIS (60 day waiting period)
March 2002............................. Approve 5 Year Program for July 2002-July 2007.
The OCS activity has occurred since 1976 in the State of Alaska. The first sale was in the Northern Gulf. Since then OCS activity has generated approximately $6.5 million in cash bonus receipts, lease rentals and a minimum of royalty. Mr. Warren stated that the recent Conservation and Reinvestment Act has provided seven coastal states, including Alaska, with funding money direct from OCS- a flat $150 million- to be distributed for fiscal 2001.
Mr. Warren reiterated that he is now soliciting comments on two basic documents. They are the lease sale schedule and the EIS that evaluates it. For further information at Washington DC. contact Mr. Ainger at (703) 787-1215 or in Alaska, John Goll at (907) 271-6010.
Councilmember Fenske pointed out that there will be drilling in the Lower Cook Inlet this year from on-shore directional drilling to off-shore cites. He asked if any of the areas in the OCS could be drilled from on-shore cites. Mr Warren advised that this is a technological question and depends on the current maximum distant they can reach. He reiterated that the federal waters is three miles off shore and added that it also depends on the nature of the formation. He advised that they have gone as much as five or six miles with directional drilling. Councilmember Fenske expressed an interest in how environmentally safe off-shore drilling is in the West Coast and North Coast areas asking if on-shore drilling is handled in the same manner as off-shore drilling. Mr. Warren stated that drilling in strictly federal waters is less complicated than drilling in areas that would also include State regulation, so there would be a difference. Councilmember Fenske referred to the complications caused by the activity of the continental plates asking if there is a plan for exploration other than off-shore drilling. Mr. Warren replied that the MMR does not make plans. He explained that the companies come up with a proposal and the MMR looks at the alternatives to that proposal. He added that this is something the MMR is looking at and concerned about and that companies are looking at that, too.
Councilmember Yourkowski expressed concern regarding the drilling muds being dumped in Cook Inlet asking if the EIS would include this. Mr. Warren stated that because the EIS is on a national scale he was not sure it would get into this issue with any depth. He added that there is a trend to re-inject some of the drilling fluids and re-circulate the drilling mud. Further, if there were a proposal for Cook Inlet, that would be a focus of the EIS. Councilmember Yourskowski asked who determines if these are adequate. Mr. Warren said they have committees across the US that have over-sited that program and that MMR has specifically for the North Slope a sub group that focuses just on that issue.
Mayor Cushing reported that he had spoken with Mr. Warren earlier today in which he'd asked if the program starts where 149 left off and was told that "everything's back on the table". All of the areas that were deleted prior for various fishing issues are back in. Mr. Warren explained that it is the way the law is written that puts everything back into the program and has nothing to do with who gets elected.
Mayor Cushing called for a recess at 8:15 pm, reconvening the meeting at 8:16 pm.
ANNOUNCEMENTS/ PRESENTATIONS/ BOROUGH REPORT/ COMMISSION REPORTS.
PUBLIC HEARING(S)
ORDINANCE(S)
CITY MANAGER'S REPORT
A. City Manager's Report
There was some discussion regarding the recent flooding problems in the Homer area and how it was handled by Public Works, ADOT and HPD. Identifying the problems and problem solving options were discussed. Public Works Director Meyer answered specific questions regarding the City's role in assisting ADOT on the East End Road flooding. He stated that he did not think the Woodard Creek flooding had anything to do with the driveway cut into the bank above Hornaday Park. PW Director Meyer reported that the flooding of the systems was completely due to the volume of water and not related to inadequate systems. He is concerned ground water that should not be, may be routed through the sewer system via roof drains, footing drains and sump pumps. Sgt. Hutt reported that HPD spent 6-8 man-hours assisting with traffic control while streets were being repaired.
COMMITTEE REPORT
A. Beach Policy Task Force Minutes of December 19, 2000.
Councilmember Yourkowski reported that the task force was presented at the first meeting with a petition of 400 signatures opposing the ordinance. He added that the task force was formed because there was a different approach needed to address this issue. At the second meeting, he said, they had gotten beyond the "polarization" effect and into fact finding. They received scientific input from Dave Erickson and an overview of existing regulations from Police Chief Mark Robl. The beaches have been split up into 7 categories depending on their differences. He concluded by saying they are still in the fact finding stage. Mayor Cushing recommended that the Parks and Recreation Commission have a member on the task force. Councilmember Yourkowski responded to Councilmember Ladd's question saying they are still looking for a student for the task force who would be familiar with the issues.
Councilmember Fenske explained that the Water and Sewer Committee has not met in some time due to city staff being busy with the budget and TORA. He believes the City Manager will mail explanations and suggestions to various LID groups as to what type of funding might be available.
Mayor Cushing thanked Councilmembers Fenske, Yourkowski and Cue for their efforts on the committees.
PENDING BUSINESS
NEW BUSINESS
RESOLUTIONS
AUDIENCE COMMENTS
Gordon Bowen says he is a general officer of a State corporation with a business license to practice as a utility hauler in Alaska. He presented the council with a petition of 160 names supporting non-residents right to have a choice in water delivery services. Mr. Bowen added that he is a general partner in East End Laundry and would like to put some comments on record. His corporation and partnership have asked the city to make decisions on a couple of things they feel are fair and reasonable. He states he employs 12 people and pays taxes and City sewer fees. He reported that last year he had to pay a public hauler to haul 576, 200 gallons of water. He stated that his company has been denied since September the right to pickup water contrary to other's rights. He reported that other's have picked up 120,320 gallons of water at the public works facility since his company has been denied access of which 108,000 gallons were picked up by Northern Enterprises, a privately owned company. Mr. Bowen requested to have access to the Public Works facility until he can put in a pumping station next door to the American Legion. He said that since September the East End Laundry water crisis has increased due to water costs going up 15%. He stated that East End Laundry would like to increase business to a 24 hours service but can't unless they get access to the water. Mr. Bowen again asked that the council allow his company to start putting in a pumping station next to the legion and in the interim allow access to the Public Works facility as is being done with other water haulers.
Bob Shavelson, Executive Director of the Cook Inlet Keeper, states that he respectfully disagrees with Mr. Meyer on the impacts on Woodard Creek. He reported that he had photos of the mud in the creek from the slide in the canyon. He stated that Cook Inlet Keeper's position is that human changes to the landscape will only increase the frequency and severity of these types of events. Their web site has a series of photos showing such impacts. Mr. Shavelson said he spoke to a crewmember cleaning out a culvert who stated it was, without a doubt, the road that caused the clog. He reported that the EPA did an inspection of the entire area over the weekend and commented to him that this situation posed serious concerns for health and safety. He said he also spoke with the inspector regarding the Tulin subdivision and the response was that it is diluting that area and accelerated the sheet runoff from that area and made the area "a lot flashier". He recommended some whole site planning and zoning in Homer if we want to get a handle on this. His opinion is that this is a "poster child for how not to develop a steep slope". He further commented on the MMR presentation referring to the Lease Management sale 149 in 1996 where the community went through a round of comments, gathered 500 people to talk to the governor, gathered thousands of signatures and gave many hours of testimony and in response to this the governor came out in opposition to the lease sale.
He added that now we're told that we have to start the process all over again under a new administration. He reported that during lease sale 149 MMR studies reported a 72% chance of a major oil spill in Cook Inlet. He reiterated that this is a 3 out of 4 chance. He pointed out that we really don't have a state or federal energy policy and quoted John Shadley of Dept of Natural Resources when he said, "Our energy policy is to pray for high oil prices". He felt that we are drilling in virgin areas in the Outer Continental Shelf under the notion that it's for domestic consumption, yet we're shipping a lot of our resources overseas. He added that we have to realize what makes this community special and felt that we live here because of quality of life. He concluded by saying this is the beginning of a long process to decide whether to keep Cook Inlet in the whole planning document at all.
Nancy Hillstrand asked if there were any plans to protect the water reservoir. She stated she received a letter of update once and then it got dropped. She asked if someone could send her a letter so she could be part of that process. Regarding the MMS, she reported that there was a $1 million study after the oil spill with a conclusion that prevention was the only option. She called for a moratorium on off-shore drilling in the Cook Inlet area to protect the precious world class fisheries in this area. She described the geography reminding residents that we are down stream of whatever happens. She stated that her home has been solar powered for 16 years and is concerned about why the community is not moving ahead in this direction. Ms. Hillstrand is concerned about the NPDES permits and hopes the council will address this issue. She supported Councilmember Yourkowski's concerns of drilling muds being dumped in Cook Inlet. She stated that we have some problems and we need to address them. She was sorry we have to go through the whole process again adding that this is the way democracy works. She thanked the council for listening.
Lynn Burkhart says she was here last time when we had the discussion about oil. She wanted to address traffic problems in Homer saying that she comes from an area that really has traffic problems. She feels that this town is set up well, however, she suggested 3 one way streets and passed out a map with her suggestions. She said she realized this had nothing to do with the meeting tonight but wanted to submit her ideas as something to look at. She felt that Homer gets more crowded each summer and frustration builds. She felt her idea would expose businesses to tourists in the summer. She asked that if this is approved to please do it in the winter when Alaskan's can get used to it.
Dr. Marley introduced himself as the leading person of the Salt Water Drive LID. He said this has gone on for a period of seven years or more and there always seems to be some reason why it can't go forward. He reminded council that they are the only body he can appeal to for assistance, adding that he's glad to ask council then repeated that he needs their help. He noted that the voters passed 3/4% tax for the water/sewer extension and asked, "where's the money?". He stated that he thinks the 75/25 split will never work and has to think that a better solution is the 25/75 split. Whatever it is, he would like to go to his LID members and support it, however, he needs something that will not change and will be supported by future councils. He proposed that the city pay for trunk lines and then people add on to trunk lines, speculating that there might be a different definition of truck line for everyone, which is complicated. He feels like what we have now is a big black hole in the sky with nothing there to hang on to. He called for definition and clarity of the process adding that he is fearful too much time may have passed to do LIDS this summer. He thanked the council for their time.
COMMENTS OF THE CITY ATTORNEY
City Attorney Tans was not present.
COMMENTS OF THE CITY CLERK
Deputy City Clerk Benson had no comments.
COMMENTS OF THE CITY MANAGER
Acting City Manager Baugh thanked Public Works for their hard work last weekend. He stated that he wants to work with Dr. Marley on the LID issues and would like to get a ratio settled. He added that he expects there will be a letter out regarding the LID's within the next couple of weeks.
COMMENTS OF THE MAYOR
Mayor Cushing stated that with the exception of Dr. Marley, the 75/25 ratio on the LID's was not well received and more study is being done. He reminded everyone that the LID program is not a commitment of funding, but is a mechanism for local property owners to get improvements to their area and for the City to try to find funds from state sources.
Referring to the MMS, Mayor Cushing advised that he has asked Paul Strang to do an evaluation in the Homer area in light of the annexation issues as he believes there are citizens who may be hesitant to come to the council and speak openly. He wanted to make sure these people get heard independently and are able to weigh-in in whatever manner they want.
COMMENTS OF THE CITY COUNCIL
Councilmember Fenske says he appreciates Dr. Marley's reminders and the fact that staff has found time to work on the documents for the LID members. He reiterated the Mayor's comments saying there are different avenues for funds referring to the recent project of the 1MG water tank that will help service the community below a level of 500 feet elevation, make service more reliable to the city proper and that the money, in part, is coming from the legislature. He added that the city doesn't get much federal funding as the federal government is focusing on outlying villages water and sewer problems. Councilmember Fenske acknowledged the petition to support additional water services in the area. He noted that most of the signatures are outside the city limits explaining that as a member of this community we do rely on the municipality to seek out those services needed. He expected that as summer comes we will hear more discontent and rhetoric about annexation and he thinks we need to get past the rhetoric and concentrate on the real issues. He's looking forward to the next several months.
Commissioner Kranich wanted to take the opportunity to say thanks to the Public Works and Homer Police Department staff for helping cope with the runoff problems. He stated that too often we look at municipal employees as if they are on the gravy train, but in this case those guys earn their money. He added that all the employees are great and thanks those who takes steps above and beyond the call of duty.
Councilmember Ladd acknowledged receiving the snow removal flyer from Public Works in the mail. He read the priority list of streets plowed first saying he appreciated that there is a procedure. He thanked MMR for their presentation stating he thinks the US needs to be looking at conscientious exploitation of our resources. He added that with the new technology available offers opportunity as long as we protect our environment. He acknowledged Dr. Marley's concerns stating that he hopes we can find funds quickly. He encouraged Public Works to get back to the council as soon as possible to plan for the upcoming summer. He appreciates those who are not in the city that come forward and speak. He added that he will look over the East End Road water issue. With tongue in cheek, he stated that attending the last meeting from the "other side of the world" from midnight to 5 AM " was a real joy" and that he will not be doing that again.
Councilmember Yourskwski thanked the MMR for their presentation. He was hoping the comments regarding Lease Sale 149 could be incorporated in this by reference. He knows that the situations haven't changed and the communities haven't changed and he's hoping that we don't have to go through the organization efforts that we went through last time. Councilmember Yourkowski agreed with Nancy Hillstrand's comments regarding the Planning Department falling behind adding that we haven't had a Planning Director for 6 months and it shows. He suggested the city put some issues out to contract to get some resolved. Regarding Julie Cesarini's property he felt it made him see the need for income tax to mitigate high property taxes. He didn't think the council should be faced with throwing people out of their homes and an income tax would help out lower income people.
ADJOURNMENT
There being no further business to come before the Council the meeting was adjourned at 9:07 p.m. The next Regular Meeting is scheduled for January 22nd at 7:30 p.m. in the Homer City Hall Council Chambers located at 491 E. Pioneer Avenue.
City Clerk's Office.