HOMER CITY COUNCIL

Session 05-01, 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. The Pledge of Allegiance was conducted under Agenda Approval.

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

STAFF: CITY MANAGER WREDE

CITY CLERK CALHOUN

FINANCE DIRECTOR BAUGH

ABSENT: COUNCILMEMBER: YOURKOWSKI (excused)

The Committee of the Whole met from 4:00 to 5:30 p.m., this was a joint session with the Library Advisory Board, discussion items were the New Library Project and the status thereof, and Library Fees.

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 following agenda additions or changes were approved by consensus of the Council.

On the Consent Agenda Substitute Memorandum 05-06(S), from the Mayor, to add the appointment of Carla Stanley to CIRCAC and there is a Correction on the agenda on the Coastal Animal Care Contract amount from $47,000.00 to $47,376.00.

Add to Visitors. Steve Rouse, Kenai Peninsula Housing Initiative and Brookside Complex.

Add to Announcements/Presentations/Borough Reports/Commission Reports, Mayoral Proclamation for National School Counseling Week, February 7 - 11, 2005 and Mayor Announcement about the Community Drive for Earthquake and Tsunami Victims being organized by the Rotary Club.

Add to Resolutions Stark's submitted backup regarding Amendment 8 to the STIP. City Manager Wrede asked that Resolution 05-05 be pulled.

WYTHE/NOVAK - MOVED FOR THE APPROVAL OF THE AGENDA AS AMENDED.

Councilmember Stark inquired if in the future all appointments could include Data Sheets on the appointees so that the Council is more informed.

Mayor Hornaday stated that this is a good point.

VOTE: YES: NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

PUBLIC COMMENTS UPON MATTERS ALREADY ON THE AGENDA

Public Comments any matter on the agenda except Public Hearing items: Ordinance 04-54, Appropriating Unexpended Grant Funds from the Bypass Project to the East End Road Water and Sewer Project and Ordinance 04-55, Amending the Official Road Maintenance Map of the City of Homer by Cook Way.

Frank Griswold, City resident, asked the Council to pull items C. and I. from the Consent Agenda, adding that he provided written testimony on one of them in the supplemental packet and that he would like to read a statement into the record on I. He asked for some clarification on Item C., that the text on the agenda states that it applies to the Central Business District, CBD, yet He was under the impression that it also applies to GC1 and GC2. Mr. Griswold voiced opposition to the appointment of Ray Kranich, Memorandum 05-06, to the Homer Advisory Planning Commission:

stating for reasons:

Data sheet reveals no special training, education, or background relating to Planning and Zoning other than serving on the City Council.

During his five years on the City Council Mr. Kranich was a planning and zoning nihilist, who fought to exempt his buddies from zoning laws that the rest have to follow.

Case in point: He was instrumental in rezoning portions of Main Street and the library lot fronting Pioneer Avenue to allow car lots after Guy Rosi forfeited his grandfather rights to sell cars. In doing so he also opened the door to automotive repair shops, auto body/paint shops, and outdoor storage of debris including unusable auto parts/junk yards. His solution to the visual blight, an eight foot high fence.

Successfully opposed sending his fencing amendment to the Planning Commission for its recommendation after the Commission unanimously opposed the original Main Street rezone proposal.

For his second term of office his campaign included promoting the Town Square Project, which was nothing more than campaign rhetoric from a Councilmember who had potentially just turned town square into a junk yard.

He stubbornly opposed eliminating the contract rezone from City Code describing it as an important tool in the City's tool chest. This instrument had long been used to grant zoning exceptions to accommodate private business interests. Fortunately, he lost this battle. Contract zoning and taking care of your buddies is not what planning and zoning is supposed to be all about.

States on Data Sheet interested in serving on the Commission because he would like to see Homer develop in an orderly manner to attract some business and economic base. Despite five years of on the job training with the City Council, his primary reason for now wanting to serve on the Commission is to promote illegitimate zoning objectives.

Councilmember Stark, addressing the Mayor, rose to a point of order and inquired of the Mayor if it is appropriate to defame somebody who is up for appointment.

Mayor Hornaday stated that three minutes had expired anyway and thanked Mr. Griswold and suggested that he could submit his testimony in writing.

Mr. Griswold asked for his letter to be considered as part of the record.

Ray Kranich stated that he does not think that he even has to respond to the previous testifier's comment as to his concern for the City of Homer. He spoke in favor of Ordinance 05-02, that the Ordinance goes a long ways toward putting in the City Code the alignment with the general intent of the initiative election, interjecting that he does not think it goes all the way, but goes a long way. He suggested that, especially if this Ordinance is adopted, the City should not adopt or carry forth Ordinance 05-03 and waste any more City dollars, emphasizing that the voters already, resoundingly, turned down the sales tax. He recommended that Ordinance 05-03 not be adopted for first reading.

Al Waddell, City resident, commented on Ordinance 05-03 that the City just went through a very public hearing situation by the voters and it was definitely turned down, therefore, he stated that he would like to see it kaboshed. He also commented on reading in the paper about deficits and so on and so forth. He voiced his hope that with some new business and some other things happening in town here that the enhancement of property and little more taxes will help immensely. Mr. Waddell quoted Arnold Schwarzenegger who had said that California did not have a real revenue problem that what they had was a spending problem. He thanked the Council.

Leonard Wells, City resident, stated that Ordinance 05-03 that he sees this as a back door way of getting a sales tax in, because last month the Council increased the property tax to fund things that, in his opinion, the Council should not have been funding. He noted, now the Council is saying, "If you let us do a sales tax, which the public does not have the right to vote against, the City will for one year decrease property tax." Mr. Wells voiced his opinion that at the end of next year the Council will, obviously, increase the property tax, because they'll need the funds again. He expressed his view that this is really a big swish type of Resolution and, like the previous speakers, this was put up just a few months ago to increase the sales tax and it was quite reasonably and properly denied.

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 Stark requested that Item E. Resolution 05-01, be placed under Resolutions as Item C.

A. Homer City Council unapproved meeting minutes of December 13, 2004 Special Meeting and Regular Meeting. City Clerk. Recommend approval.

B. Ordinance 05-01, Of the City Council of the City of Homer, Alaska Amending Homer City Code Sections, 21.48.060(h) Central Business District - Landscaping Requirements, 21.49.060(h) General Commercial 1 - Landscaping Requirements, and 21.61.105(l)(7) Conditional Use Permit - Landscaping. City Manager. Planning. Recommend introduction for first reading and conduct public hearing on January 24, 2005 and second reading on February 14, 2005.

C. Ordinance 05-02, Of the City Council of Homer, Alaska Amending Homer City Code Chapters 21.32, Definitions, to add a New Section 21.32.208 Foot Print Area, Chapters 21.48 Central Business District, 21.49 General Commercial One District and 21.50 General Commercial Two District, Building Area and Dimensions, to Increase the Allowable Area of Buildings Used for Retail and Wholesale Business to 66,000 Square Feet. McLay. Wythe. Recommend introduction for first reading and forward to the Planning Commission for review and hearing, and conduct public hearing January 24, 2005 and second reading February 14, 2005.

Memorandum 05-03, from Councilmember Wythe, as backup.

D Ordinance 05-03, Of the City Council of Homer, Alaska Approving a One Percent Increase in the City Sales Tax, with .25 Percent Dedicated to a Community Enhancement Fund, and Submitting a Proposition to Approve Such Changes to the Voters for Voter Approval at a Special Election on Tuesday, March 22, 2005 and Providing for a Maximum Property Tax Rate in 2005 of 4.50 Mils if the Sales Tax Increase is Approved by the Voters. Novak. (Fiscal Note: Projected revenue for 2005 $966,551.25. Sales Tax increase would provide $1,288,735.00 for a year and a 1 mil decrease for the year equals $339,738.00 decrease in property tax revenue. Cost of Special Election is approximately $7,000.00.) Recommend introduction for first reading, conduct public hearing January 24, 2005 and second reading on February 14, 2005.

E. Resolution 05-01, Of the City Council of Homer, Alaska Awarding the Professional Consulting Services for the Homer Conference Center Feasibility Study to the Firm of Convention Sport and Leisure International (CSL International) of Minneapolis, Minnesota, in an Amount not to Exceed $45,000.00 and Authorizing the City Manager to Execute the Appropriate Documents. City Manager. City Clerk. Fiscal Note: Budgeted in Acct.151 - 786: $45,000: Ordinance 04-50: Revenue FY 05 Mini Grant $ 30,000.00, General Fund, Fund Balance City's Match $ 11,500.00, 151-786 Chamber of Commerce $ 2,500.00, Homer Bed and Breakfast Association $ 1,000.00, In Kind Match $4,340.00. Recommend adoption.

Memorandum 05-04, through City Manager as backup.

Placed under Resolutions as Item C.

F. Resolution 05-02, Of the Homer City Council Confirming the Appointments of Dean Baugh as Treasurer and Lisa Vaughn as Deputy Treasurer for Calendar Year 2005. City Manager. Recommend confirmation.

G. Resolution 05-03, Of the City Council of Homer, Alaska Designating Signatories of City Accounts and Superseding any Previous Resolution so Designating. City Clerk. Recommend adoption.

H. Resolution 05-04, Of the City Council of Homer, Alaska, Authorizing the City Manager to Execute the 2005 Agreement with Coastal Animal Care for Professional Services and Operation of the Homer Animal Shelter in the Amount of $47,376.00. City Manager. (Fiscal information: Budgeted, Professional Services, 100.165.5210, $47,376.00.) Recommend adoption.

Memorandum 05-05, from City Manager as backup.

I. Memorandum 05-06(S), from Mayor, Re: Reappointment of John Velsko to the Prince William Sound Regional Citizens Advisory Council (PWSRCAC), Appointment of Ray Kranich to the Homer Advisory Planning Commission to fill the Bartlett Vacancy, the Appointment of Dave Durham to the Economic Development District to fill the Swenning Vacancy, and the Appointment of Carla Stanley to the Cook Inlet Regional Citizens Advisory Council (CIRCAC). Recommend confirmation.

J. Memorandum 05-07, from City Clerk, Re: Liquor License Renewals: Beverage Dispensary License for Lands' End, Restaurant/Eating Place Public Convenience License for Boardwalk Fish and Chips and Club License for the American Legion Post #16 (Fiscal note: Revenues.) Recommend non objection and approval.

K. Memorandum 05-08, from City Clerk, Re: Travel Authorization for the Mayor to Attend the Alaska Conference of Mayors/Alaska Municipal League Board of Directors Winter Meeting in Juneau, January 25 - 26, 2005. (Fiscal Note: Mayor and Council: 2005 Budget: 100.100.5236, Transportation: $6,500.00 and100.100.5237, Subsistence: $4,500.00.)

BECK/WYTHE - MOVED TO ADOPT AND/OR APPROVE THE RECOMMENDATIONS OF THE CONSENT AGENDA, AS READ.

Councilmember Stark commented on the title of Ordinance 05-02, wanting to make sure that the title is accurately advertised. He declared a potential conflict of interest on Ordinance 05-02, because he and his wife own one of the 283 parcels that are subject to the zoning. He advised that, under the City Attorney's Opinion, this is not grounds for disqualification, but he wanted to bring this to the Mayor's attention so that he could rule on it.

Mayor Hornaday ruled that Councilmember Stark does not have a conflict of interest regarding Ordinance 05-02 pursuant to the City Attorney's Legal Opinion on Page 65. He asked if the Council wanted to overrule his ruling.

Council did not indicate any desire to overrule the Mayor.

Councilmember Novak requested that Item C. be placed under Ordinances and Councilmember Stark requested that Item D. be placed under Ordinances.

VOTE: YES: NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

VISITORS

A. Steven Rouse, Executive Director, Kenai Peninsula Housing Initiatives, Brookside Complex.

Mr. Rouse gave a rapid, informative report, regarding Kenai Peninsula Housing Initiatives and the Brookside Complex. Kenai Peninsula Housing Initiatives is a not for profit Community Housing Organization with a main office in Homer, serving the entire Kenai Peninsula and providing low income and special needs residents of the Peninsula the opportunity to take a more active role in their lives and communities by providing a variety of housing options. He updated the Council on the housing project, the Brookside Complex and thanked the Mayor, Council, City Manager and City for all the assistance and for the donation of a parcel of land. He emphasized the expeditious manner in which the Brookside Complex was constructed, having initiated the process with the Council eighteen months ago. The Brookside complex is 7,000 square feet, has eight one bedroom apartments for supported housing adults, one two bedroom manager's apartment and a common area. He shared his excitement that this project came in on time and under budget, adding that they overcame every obstacle that was endemic to that piece of property, such as the drainage situation. He noted that the drainage ditch became a brook, hence the name Brookside. He reported that the drainage project includes settling ponds and turbidity issue solutions, that probably have not occurred in any other project. This project is a very good example of a public and private sector partnership, showing the enhancement to property that can happen when turned over to the private sector. He emphasized that the property was valued at less than $30,000.00 when donated by the City and that Kenai Peninsula Housing Initiatives is now paying property tax and under no scenario would the City be receiving more property taxes from any body else. The City is receiving a long term benefit of a steady stream of a high amount of property taxes. Mr. Rouse encouraged the City to keep this in mind as the Kenai Peninsula Housing Initiative moves forward with other projects in the City of Homer. He acknowledged a lot of the people in Homer that made this project possible: The Homer City Council, City Manager Wrede and his staff, Kenton Bloom, Coast Range, Sundance Construction - Rick and Connie Vann, Kenai Peninsula Housing Initiative Board of Directors, Homer Foundation, First National Bank of Alaska, Alaska Housing Finance Corporation and HUD. The Open House for the Brookside Complex is Friday, January 14, 2005 from 5:30 p.m. o 7:30 p.m.

ANNOUNCEMENTS/PRESENTATIONS/BOROUGH REPORT/COMMISSION REPORTS

A. Memorandum 05-09, from Mayor, Re: Mayor Hornaday's Travel Report, Luncheon Meeting with Governor Murkowski.

Mayor Hornaday gave a summation of his report, relaying a more positive outlook on Revenues from the Governor, and commended City Manager Wrede for preparing a letter on the City of Homer Legislative Priorities. He commented briefly on going to Juneau for the January 25 and 26th meetings and encouraged the Council to go to Juneau.

B. Prince William Sound Regional Citizens Advisory Council Report, John Velsko.

Mr. Velsko was present to answer questions.

C. Mayoral Proclamation for National School Counseling Week, February 7 - 11, 2005.

D. Mayor Announcement about the Community Drive for Earthquake and Tsunami Victims being organized by the Rotary Club.

Mayor Hornaday commented on the horrible tragedy and advised that donations may be submitted to Kevin Miller at Wells Fargo.

PUBLIC HEARING(S)

A. 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 Account No. 215-852 Bypass Grant $41.000.00 and Expenditure Account No. 215-829 East End Road Water and Sewer Extension Project $41,000.00) ( First Reading December 13, 2004, Public Hearing and Second Reading January 10, 2005.)

There was no Public Testimony.

WYTHE/BECK - MOVED FOR THE ADOPTION OF ORDINANCE 04-54 BY READING OF TITLE FOR SECOND AND FINAL READING.

There was no discussion.

VOTE: YES: NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

B. 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 )( First Reading December 13, 2004, Public Hearing and Second Reading January 10, 2005.)

There was no public testimony.

WYTHE/BECK - MOVED FOR THE ADOPTION OF ORDINANCE 04-55 BY READING OF TITLE FOR SECOND AND FINAL READING.

There was no discussion.

VOTE: YES: NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

ORDINANCE(S)

A. Consent Agenda Item C. Ordinance 05-02, Of the City Council of Homer, Alaska Amending Homer City Code Chapters 21.32, Definitions, to add a New Section 21.32.208 Foot Print Area, Chapters 21.48 Central Business District, 21.49 General Commercial One District and 21.50 General Commercial Two District, Building Area and Dimensions, to Increase the Allowable Area of Buildings Used for Retail and Wholesale Business to 66,000 Square Feet.. McLay. Wythe. Recommend introduction for first reading and forward to the Planning Commission for review and hearing, and conduct public hearing January 24, 2005 and second reading February 14, 2005.

Memorandum 05-03, from Councilmember Wythe, as backup.

ON THE FLOOR FROM THE CONSENT AGENDA.

Comments included:

Move this through the public process.

Not all districts are the same, there was a reason that the Planning Commission made variances in the sizes in the different districts, to maintain some sort of integrity or to limit what might happen in certain areas.

Homer does not really have another large commercial district, which may present an issue down the road.

Homer could use a new large commercial area. Maybe at some point that could fit into this too. Part of that would be a vision for Homer, so that Homer can grow.

This community sets its own standards and charts its own destiny.

Utmost faith and confidence that the Planning Commission will provide an opinion.

The Planning Commission has given a previous opinion and the decision was for everything to be smaller square footage.

Concern expressed with divisionalizing the limitation on where a business may be located by size. This makes the CBD property more valuable then GC1 and GC2.

Advantageous to open eyes and minds a little bit more.

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

Motion carried.

ON THE FLOOR FROM THE CONSENT AGENDA.

Comments included:

Revenues need to be increased. Hate to see our backs against the wall when it comes to the budget process.

Down the road there will probably be some more revenue coming into the City. That will help, but will not eliminate the need for additional revenues.

City obligations are increasing.

Example of conversation with the Library Advisory Board during Committee of the Whole. It will cost an additional couple hundred thousand dollars a year just for operations. Funds to pay off the loan at the tune of $100,000.00 a year, which totals an additional $300,000.00 a year.

Animal Shelter staffing issue, contracting currently since there are not the funds to staff the facility.

State revenue sharing is not going to be funded in the foreseeable near future.

PERS costs, there may be some state money and there may not.

City is operating on a real minimal scale, and the reserve for the General Fund should have more in it than it does.

Concern expressed should there be a problem that requires large expenditure.

It is not unreasonable and is responsible to look for predictable revenue at this point in time. Property tax was raised during the last budget session to balance the budget, it was not raised to do something else later. If the sales tax can be increased by one percent the property tax can be decreased. The desire is to balance out how the funding is taking place within the City and outside the City. It us unfair to put too much of a burden on the City residents.

One way to level the playing field without putting in a special service district is to increase the sales tax that everybody pays. This is more fair to all.

The summer visitor will also be paying the sales tax, thereby contributing a little more.

Intent of the Community Enhancement Fund (.25% allocated to the fund from the 1% increase) is to set aside money outside of the General Fund to pay for things such as: Pratt Museum, Community Schools, Library Loan, Stocking the Fishin' Hole, etc. These items help the economics of the community and the funds helps the City to balance the budget and eliminates having to deal with it every year with the "I Hope We Can Find It Somewhere" type of an approach.

It is absolutely important.

Substantial agreement with Ray Kranich, Leonard Wells and Al Waddell for voting this down now.

Statement of looking forward to Ordinance 05-02 and 05-03 going together at the same time. That this brings a perfect alternative vision for the future of the City. One Ordinance is for Homer to grow and prosper, the entire City and entire business community and City revenues. The other Ordinance puts the City in a downward spiral with businesses and people leaving the community and services being curtailed. This is a perfect opportunity to consider these issues.

Another point of view - Both Ordinances are needed. The increase in tax revenue is needed for consistency and to put some spine in the budget and to provide the services that the City Council is committed to. The increase in store size, building size is going to encourage larger businesses to come to Homer and fuel Homer's sales tax budget and income. These will enable far more growth with the Ordinances working cooperatively.

Increase of building size will allow for future financial stability, whereas, the City has some serious short term issues. Some form of a tax increase is necessary in the short term. As long term business grows the hope is that the tax could be eliminated or reduced.

The City is on its way to getting through 2005. January 1, 2006 is going to be like the sun coming up and the future of Homer, beginning 2006, for the residential, business and the municipal community, which are going to be in wonderful shape.

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

Motion carried.

CITY MANAGER'S REPORT

A. City Manager's Report (Update: Library Fees, Gulf of Alaska Bottom Fish Rationalization, Port and Harbor Projects, Reconnaissance Report by Army Corp of Engineers(COE), Deep Water Dock, Spit Parking Plan, Governor's Budget, Kenai Peninsula Housing Initiative - Brookside, STIP Comments, Animal Shelter Contract, RFP/Convention and Civic Center, Spit Pathway, Travel Schedule; FY 2004-2006 STIP Amendment 8 Comments; Letter to COE re: Harbor Expansion; Mayor Hornaday's Letter to Governor Murkowski; Project Grad Information.)

City Manager Wrede added that he attended the Local Boundary Commission (LBC) hearing, advising that the LBC ruled in the City's favor. He reported that he, Finance Director Baugh and Chief of Police Robl will be meeting this week in Soldotna regarding the 911 system and that there is a meeting with Mayor Bagley and all the Borough City Managers. Friday there is a meeting with the University of Alaska and the Kenai Peninsula Borough School District and with the Cities that have Community Schools to discuss the future of that program.

Councilmembers Stark voiced his concern about the Soldotna people wanting to form a 911 cell here, staffed 24/7 with two people on duty at all times, a monumental amount of money to be financed by the people in this area. He stated that this is totally absurd. He mentioned what is being done with the electronic capabilities, having to change addresses, community activity, vehicles and screens in Soldotna. He voiced his belief that Homer should do everything it can to not have the dispatch here, that it can be done just as efficiently at much less cost in Soldotna.

Councilmember McLay commented on the statements from the Boundary Commission, who noted that there were two individuals from the annexed area elected to the Council. He recalled telling the City they would live to regret the annexation, because now there would be individuals like himself who would be helping to control things. He stated that, since this is all Homer and for all, now all are working together to make it right.

B. Bid Report. RFP: Professional Consulting Services for a Homer Conference Center Feasibility Study - Consent Agenda. Item E. Resolution 05-01 and Memorandum 05-04; Bid: Invitation to Bid Hillside Acres Water and Sewer Project. Sealed bids are due in the Office of the City Clerk by 2 p.m. Tuesday, January 18, 2005; Bid: Sealed Bids to lease City Property on the Homer Spit. Sealed bids are due in the Office of the City Clerk by 2:00 p.m Tuesday, February 15, 2005; and RFP: Request for Proposals Incorporation of Art into the New Homer Animal Shelter. Sealed Proposals are due in the Office of the City Clerk by 4:30 p.m Thursday, March 24, 2005. )

C. Game Report. (2005 Gaming Permit Application - Homer High School - filed 12/09/04, Homer High School Mariner Booster Club - filed 12/13/04, American Legion General Buckner Post #16 - filed 12/20/04, Homer Elks Lodge #2127 - filed 12/27/04, Kachemak Bay Broadcasting, Inc. - filed 12/30/04.)

D. Record Report. (Finance Records destroyed pursuant to Homer's Records Retention Schedule: Bank records and statements, Payroll time sheets and records, Compensation records, Utility billings and records, Cash receipts, Accounts payable and runs, Charge invoices, Receipts, and Permits. 1992-1999 dated information)

COMMITTEE REPORT

A. Town Center Development Committee (November 18 - no quorum, December 9, 2004 notes. Next scheduled meeting is January 27th at 5:30 p.m. Chamber of Commerce Building.)

B. Road Standards Committee (No meeting scheduled)

C. Beach Policy Committee. (January 5th meeting.)

There were no comments.

PENDING BUSINESS

NEW BUSINESS

A. Memorandum 05-02, from Councilmember Stark, Re: Sales Tax Collection by Non-Profits. Recommend approval.

As you know, not-for-profit organizations are not required to pay property tax or collect sales tax.� However, they can do so on a voluntary basis, and in fact the Pratt Museum's gift shop does collect and remit sales tax. Although there is an administrative burden in doing so, the tax is paid by the customer. Sometimes the store chooses to include it in the sale price in order to round off the sale price. The collection and remitting of sales tax by not-for-profit organizations would tend to level the playing field with private organizations which compete with non-profits and must collect and remit sales tax. Probably the best way to approach this issue, if the Council agrees, is for the City Manager's staff to contact non-profits to determine their willingness to collect sales tax.�

RECOMMENDATION: Approve the above proposal.��

STARK/MCLAY - RECOMMEND APPROVAL OF MEMORANDUM 05-02 BY READING OF TITLE.

Mayor Hornaday commented on the issue of non profits competing with local businesses by not collecting sales tax, which is an issue with the Islands and Oceans Visitor Center and is a problem in Seward with the Sea Life Center.

Councilmember Stark stated that its all in the memo and that the customer pays the tax. So the burden on the merchant is administrative. It is desirable to level the playing field, adding that there are a lot of non profits competing with profit making organizations. He noted that the City does not have any power to make the non profits do this since it is voluntary. He voiced his opinion that some of the non profits will change to collecting sales tax.

VOTE: YES: NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

RESOLUTIONS

A. Pulled under agenda approval. Resolution 05-05, Of the City Council Amending the City of Homer Fee Schedule, Camping Fees. City Clerk. (Fiscal Note: Revenue.) Recommend adoption.

Spit Camp Ground

RV $15/day

14 calendar days $126 $189

All other camping $6/day$10/day

14 calendar days$ 72 $126.00
Hillside Campground

RV $10/day $15/day

14 calendar days $126 $189

All other camping $6/day$10/day

14 calendar days $72 $126.00
Mariner Park Camping

RV $15/day

14 calendar days $189

All other camping $10/day

14 calendar days $126.00

All fees inclusive of sales tax.

B. Resolution 05-06, Of the Homer City Council Commenting on Draft Amendment NO. 8 of ADOT & PF 2004-2006 State Transportation Improvement Program (STIP)- Proposed State Transportation Projects Affecting Homer Residents. Stark Recommend adoption.

STARK/McLAY - MOVED FOR THE APPROVAL OF RESOLUTION 05-06 BY READING OF TITLE.

Discussion included:

Paving of Skyline Drive and Diamond Ridge are not in the STIP. According to Councilmember Stark the DOT person in Juneau, in charge of the STIP, advised Councilmember Stark that there are sufficient funds for 2005 to do things like the paving of Skyline and Diamond Ridge. Gravel to black projects may be done in short order if the road is in good shape, and can be done by the maintenance section of DOT. If the project is requested there is a good chance of it getting done. The financial situation after 2005 is not as good.

Deadline for comments is today. The same gentlemen in Juneau, according to Councilmember Stark, stated that if the Resolution is faxed to DOT prior to Thursday, January 13, 2005 it would be effective.

Spit Trail, Phase II, which did not get listed and could be enhanced by using 10% HARP or whatever needs to happen to get this project done. Requires City agreement to take on some responsibility for state roads.

Due to the surplus the Governor did contact departments for priorities.

DOT contacted the City Manager to ascertain if the Spit Pathway was still a top priority, which he confirmed. DOT advised the City Manager that the City can seal the deal and increase the scoring by doing a couple of things.

NOVAK/BECK - MOVED TO AMEND THE RESOLUTION TO ADDRESS THE SPIT TRAIL.

Discussion on increasing the scoring:

Cash or 10%, which is now mandatory. Council voiced a willingness, last year, to contribute more than 10% of the match. No number was defined.

TORA (Transfer of Responsibility Agreement) on Bunnell Street, Ohlson Lane, Main Street or Mission Road. Wherein DOT brings a road up to standards first, such as the situation with Bartlett/Hohe.

Small portion of Mission Road about the first mile, up to standard, drainage issues. (Least expensive to upgrade.) The City may be able to argue about paving it as well.

Portion of Main Street that the State owns, most expensive to upgrade.

Old Town, Ohlson Avenue and Bunnell Street, which are really community roads. There is a request from the City for the upgrade of Bunnell Street, with sidewalks and landscaping. (Second in expense to upgrade.)

It is not clear if the 10% may be allocated from the Homer Accelerated Roads Program (HARP). City Manager Wrede pointed out that the 10% is not optional, it is mandatory.

STARK/ - FRIENDLY AMENDMENT TO INCLUDE - CITY WILL PAY 10%.

NOVAK/BECK - CONCUR WITH FRIENDLY AMENDMENT.

There were no objections to the friendly amendment.

City Clerk Calhoun inquired as to the specifics of the verbiage regarding the Spit Pathway.

Council stated that the City Manager could submit the verbiage.

Discussion continued.

STARK/ - MOVED TO INCLUDE BUNNELL/OHLSON.

Motion died for lack of a second.

NOVAK/BECK - MOTION TO ADD THE TAKING OVER OF MISSION ROAD.

There was some discussion, including that Ohlson and Bunnell are closer to standard. DOT assumes that the City will want the roads to City standard and that Paving may be asking a lot, with specific regard to Mission Road. The issue of expense is not only the City's concern it is also the State's issue. There was comment regarding Ohlson Lane and Bunnell Street that the City could say just one of those streets rather than both and then the City would not be giving away very much. Recommendation from Public Works, as relayed by the City Manager, was for either Mission Road or Bunnell Street.

City Manager Wrede emphasized that there is a verbal confirmation from DOT regarding bringing roads up to standard and the City taking over the responsibility for maintenance. He also reiterated that the 10% is assumed if the Spit Pathway is to get constructed.

Mayor called for a voice vote, which was inclusive and therefore, called for a Role Call vote.

VOTE:(Secondary amendment 2) YES: McLAY, WYTHE, NOVAK.

NO: STARK, BECK.

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

STARK/BECK - MOVED TO INCLUDE BUNNELL.

There was no discussion.

VOTE: (Secondary amendment 3.( YES: BECK, McLAY, WYTHE, STARK, NOVAK.

Motion carried.

There was no further discussion.

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

Motion carried.

C. Consent Agenda Item E. Resolution 05-01, Of the City Council of Homer, Alaska Awarding the Professional Consulting Services for the Homer Conference Center Feasibility Study to the Firm of Convention Sport and Leisure International (CSL International) of Minneapolis, Minnesota, in an Amount not to Exceed $45,000.00 and Authorizing the City Manager to Execute the Appropriate Documents. City Manager. City Clerk. Fiscal Note: Budgeted in Acct.151 - 786: $45,000: Ordinance 04-50: Revenue FY 05 Mini Grant $ 30,000.00, General Fund, Fund Balance City's Match $ 11,500.00, 151-786 Chamber of Commerce $ 2,500.00, Homer Bed and Breakfast Association $ 1,000.00, In Kind Match $4,340.00. Recommend adoption.

Memorandum 05-04, through City Manager as backup.

STARK/BECK - MOVED FOR THE ADOPTION OF RESOLUTION 05-01 BY READING OF TITLE.

Councilmember Stark voiced dissatisfaction with the study costing $45,000.00.

Councilmember Wythe noted the breakdown of the allocation for the study: Revenue FY 05 Mini Grant $ 30,000.00, General Fund, Fund Balance City's Match $ 11,500.00, 151-786 Chamber of Commerce $ 2,500.00, Homer Bed and Breakfast Association $ 1,000.00, In Kind Match $4,340.00.

VOTE: YES: NOVAK, BECK, WYTHE, STARK.

NO: McLAY.

Motion carried.

COMMENTS OF THE AUDIENCE

Audience comments upon any matter.

Frank Griswold stated that he noticed that the Mayor scanned that five page Attorney Opinion on the Stark potential Conflict of Interest, a pretty quick scan. He stated that he also sent the Council his comments and that the City Attorney did not specifically address this ordinance, he addressed a previous ordinance. Mr. Griswold voiced his hope that the time would be taken to read all of the material and, if appropriate, issue a notice of reconsideration. He reported that this week that literally hundreds of people have been enjoying Beluga Lake, that ice conditions have been very good. He advised that there are some parking and access problems and that it is very difficult to find a place to park to use the lake. He relayed that, today, there were several four wheelers towing kids water ski style and two pick up trucks spinning brodies, creating a potential for conflict. He voiced his hope that the City would work with DOT and DNR to set some standards for Beluga Lake. He stated that it would also be appropriate to post some sort of warning sign at the only real danger spot on the lake, that methane hole about 150 yards in front of Mattox Street. He voiced a concern about a truck or someone going in that hole and there being another drowning like twenty years ago up at the reservoir.

Councilmember Stark rose to a point of personal privilege: In response, he stated, that in contradistinction to what Mr. Griswold said, the Attorney's opinion is on an Ordinance that is absolutely identical to the one before Council regarding the conflict of interest.

Citizen Bill Smith, commented on the Ordinance to increase the size of retail and wholesale stores, adding that he supported making an amendment to increase the store size. He voiced his thought that Mr. McLay's concern about having equal treatment for different areas is appropriate, but he has to say that an inherent principle of zoning is to differentiate development in different areas. He likened this to the analogy of only using being able to use an open end wrench to work on a vehicle. He used the expansion of Safeway as an example, that the current manager of Safeway has told him that the current limits are perfectly suited to their needs, adding a comment about an expansion in Seward, where there are no limits. Mr. Smith stated that the issue of 66,000 only came up because of one person representing Fred Meyer mentioning that particular number, that it does not represent a good number from a community planning standpoint. He recommended adopting 65,000 or 60,000, some round number that makes more sense in some other way, than accommodating one person. He commented that this would also assist the City in insulating itself and the developer from any development lawsuits around the issue. He noted that the Community Design Manual was not pointed at a particular store size, because it covers a lot more than just the retail and wholesale developments. He voiced his thought that the Design Manual also has the flexibility to address the whole project and, therefore, does not need to be readdressed with this Ordinance.

COMMENTS OF THE CITY ATTORNEY

City Attorney Tans was not present.

COMMENTS OF THE CITY CLERK

City Clerk Calhoun had no comment.

COMMENTS OF THE CITY MANAGER

City Manager Wrede had no comment.

COMMENTS OF THE MAYOR

Mayor Hornaday had no comment.

COMMENTS OF THE CITY COUNCIL

Councilmember Beck read a resignation letter into the record. She is resigning due to a family need. Her last Council meeting will be March 29, 2005 and she and her family plan to leave Homer April 15, 2005. She emphasized that, until that time, she will continue to serve on the Committees to which she has been appointed, that she will work very diligently to bring projects and reports to conclusion. Ms. Beck stated that it has been an honor and a privilege to work with this and the last Council and to work for the well being of the City of Homer.

Councilmember Stark stated that he will miss Councilmember Beck. He addressed Mr. Smith's comment on 66,000 square feet, that it is related less to Fred Meyer than it is to the 63% approval of the voters of Homer on the 15th of June of an initiative. He stated that Ordinance 05-02 clarifies the wording and carries out the will of the voters. There was an overwhelming mandate of the voters of the City of Homer, Alaska.

Councilmember Novak thanked Councilmember Beck for her service and that he looks forward to spending another two and half months with her here on the Council. He wished her well in the future and that he appreciates her presence.

Mayor Hornaday, interjected, a disclosure that he, Dennis Novak and Tony Neal attended the same High School, Theodore Roosevelt High School in De Moines, Iowa.

Councilmember Wythe thanked Councilmember Beck and wished her well. She commented on the 66,000 square foot size cap, that it seems to be a bit of an enigma, but that the number comes off the wall in the back of the Council Chambers from the University of Washington Students work. She pointed out that the students cited, as an anchor for the Central Business District, a size of 66,000 square foot for the anchor retail/wholesale facility. She noted that this was approved by a preponderance of the voting of the electorate last year.

Mayor Hornaday stated that the next edition of the Singing Nuns won't be the same without Councilmember Beck's thespian contribution.

ADJOURNMENT

There being no further business to come before the Council the meeting was adjourned at 8:33 p.m. The next Regular Meeting is scheduled for January 24, 2005 at 7 p.m. and the next Committee of the Whole is scheduled for Monday, January 24, 2005 at 4 p.m. All 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: _____________________________

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