Session 08-02 a Regular Meeting of the Homer City Council was called to order at 7:00 p.m. on January 14, 2008 by Mayor James C. Hornaday at the Homer City Hall Cowles Council Chambers located at 491 E. Pioneer Avenue, Homer, Alaska, and opened with the Pledge of Allegiance.

 

PRESENT:     COUNCILMEMBERS:        CHESLEY, HEIMBUCH, NOVAK, ROBERTS,                                                                                SHADLE, WYTHE

 

                        STAFF:                                   CITY MANAGER WREDE

                                                                        CITY CLERK JOHNSON

                                                                        FIRE CHIEF PAINTER

 

Mayor Hornaday called for a minute of silence to remember the victims and their families of the January 5th airplane crash. Killed were Stefan F. Basargin, Pavel F. Basargin, Zahary F. Martushev, all of Razdolna; Andrian Reutov, 22, and Iosif Martushev, 15, both of Kachemak Selo and the plane's pilot, Robin Starrett, of Kodiak.

 

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

 

Council met as a Committee of the Whole from 4:00 to 5:13 p.m. Agenda items were City Planning Powers, Water/Sewer Rates - Commercial Users and Regular Meeting Agenda items. Council met for a Special Meeting from 5:31 p.m. to 6:49 p.m. to discuss the Climate Action Plan.

 

AGENDA APPROVAL

 

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

 

Amendments included: Public Hearing(s) - Ordinance 07-50 – Written public comment; City Manager’s Report - City Manager’s Report; Resolutions - Resolution 08-04(S) and Resolution 08-05(S).

 

The agenda as amended was approved by consensus of the City Council.

 

PUBLIC COMMENTS UPON MATTERS ALREADY ON THE AGENDA

 

John Fenske, Chairman of the South Peninsula Hospital Service Area Board, thanked Council for their support of Resolution 08-04(S). He is satisfied with the operating contract as to how it is written and presented. He thanked Council and staff for the help provided to the Service Area Board, as they are all new members. The hospital’s Certificate of Need is moving along and the Board is establishing criteria for meetings. Additionally he thanked Council for their work on the Town Center development. As Chair of the Advisory Board for Kachemak Bay Campus he is excited about the new City Hall. The university is enthused and motivated to occupy the old City Hall building in creating improvements in the university district. It will define the nature of the community with a lot of future.

 

Walt Partridge, President of the Board of Directors for South Peninsula Hospital, recommended adoption of Resolution 08-04(S) and thanked Council for their consideration. The Board of Directors voted unanimously to adopt the contract.

 

Kenai Peninsula Borough Mayor John Williams asked the Mayor and Council for their support of Resolution 08-04(S) to take care of the sublease portion of the contract on the hospital. Echoing the voices of previous speakers, the contract is a tremendous task on the part of everyone that worked on it. Homer’s economy was enhanced with trips and meals with the Chief of Staff and himself. The contract will be in place with the Operating Board for six years. On January 22nd the KPB Assembly is set to put the final touch on the contract; the contract will go into effect April 8th. Mayor Williams is doing everything he can to work on the development of the Certificate of Need to complete the hospital construction phase. He thanked Council for their patience on the contract. He visited Jim Pastro and he is coming along well, he is up and walking with canes and may be able to come home in February. This is a man who they never expected to live, let alone walk.

 

Dan Boone, member of the Global Warming Task Force, thanked the Mayor and Council for adopting the Climate Action Plan (CAP). Additionally, he favors Resolutions 08-05 and 08-07.

 

RECONSIDERATION

 

None.

 

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 December 10, 2007 Special and    Regular Meeting and December 17, 2007 Special Meeting. City Clerk. Recommend             approval.

 

B.         Ordinance 08-01, Of the City Council of Homer, Alaska, Accepting and Appropriating            an Environmental Protection Agency’s Regional Geographic Initiative Grant in the             Amount of $5,000 for Development of an Employee Sustainability Handbook and     Authorizing the City Manager to Execute the Appropriate Documents. City        Manager. Recommend Introduction January 14, 2008, conduct Public Hearing and           Second Reading on January 28, 2008.

 

C.        Resolution 08-01, Of the Homer City Council Confirming the Appointments of Regina             Harville as Treasurer and Lisa Vaughn as Deputy Treasurer for Calendar Year 2008. City Manager. Recommend adoption.         

D.        Memorandum 08-01, from City Clerk, Re: Setting the Land Allocation Joint    Worksession with Council's Advisory Bodies for Monday, February 25, 2008 at 5:30          p.m. Recommend approval.

E.         Memorandum 08-02, from City Clerk, Re: Travel Authorization for Mayor’s   Attendance at Alaska Municipal League Legislative Meetings in Juneau, Alaska January 22 - 24, 2008. Recommend approval.

F.         Memorandum 08-03, from Mayor, Re: Appointment of Ruth Dickerson to the Parks and        Recreation Advisory Commission. Recommend confirmation.

G.        Memorandum 08-04, from City Clerk, Re: Liquor License Renewal for Uncle Thirsty’s           Liquor Store and Down East Saloon. Recommend non objection and approval.

H.        Memorandum 08-06, from City Clerk, Re: Reappointment of David Durham as           Homer’s Representative on the Kenai Peninsula Economic Development District, Inc.          Recommend confirmation.

NOVAK/SHADLE – MOVED TO ADOPT THE RECOMMENDATIONS OF THE CONSENT AGENDA AS READ.

 

There was no discussion.

 

VOTE: YES. NON OBJECTION. UNANIMOUS CONSENT.

 

Motion carried.

VISITORS

None.

ANNOUNCEMENTS/PRESENTATIONS/BOROUGH    REPORT/COMMISSION REPORTS

 

A.                 Mayoral Proclamation, Asaiah Bates Day February 14, 2008

 

Mayor Hornaday stated he met with Congressman Young to go over the capital budget.

 

PUBLIC HEARING(S)

 

A.        Ordinance 07-49, Of the City Council of the City of Homer Amending the Official        Road    Maintenance Map of the City of Homer by Adding 3,080 Linear Feet of Road       Improvements to Spruceview Avenue, Noview Avenue and Mullikin Street or .59 Miles       of Urban Road. City Manager/Public Works. Introduction December 10, 2007, conduct             Public Hearing and Second Reading on January 14, 2008.

 

            Memorandum 07-189 from Public Works as backup.

 

There was no public testimony.

 

NOVAK/SHADLE – MOVED FOR THE ADOPTION OF ORDINANCE 07-49 BY READING OF TITLE ONLY FOR SECOND AND FINAL READING.

There was no discussion.

 

VOTE: YES. NON OBJECTION. UNANIMOUS CONSENT.

 

Motion carried.

 

B.         Ordinance 07-50, An Ordinance of the City Council of Homer, Alaska Authorizing the             Design and Installation of an Additional 4,400 Linear Feet of Water Main Along      Kachemak Drive to Complete the Loop Between the Airport and East End Road and       Approving the Creation of a Deferred Assessment District. City Manager/Public Works.             Introduction December 10, 2007, conduct Public Hearing and Second Reading on        January 14, 2008.  

 

            Memorandum 07-192 from Public Works as backup.

 

Michael McCarthy, retired Oregon geologist and Kachemak Drive resident, opposes Ordinance 07-50. Phase I destroyed spruce trees needed to absorb excess ground water, with an adverse impact. Phase I does not provide confidence that Phase II or III will be without adverse impact. Revisiting the line to install a sewer line at a later date is a major financial cost to property owners. He suggested water and sewer projects at the same time along with a bike path. It would minimize costs, disturbance of traffic flow and neighborhood disruption. ADOT engineers visited his property and witnessed massive mud slides on the property and flooding across Kachemak Drive. Mr. McCarthy collected water flow data on curtain drains and provided them to ADOT. ADOT informed him per 18 AAC 80.020 the minimum separation distance between a drinking water supply and sewer line is 10 ft. Geoff Coble has already studied the situation and Mr. McCarthy recommended that he provide input in the underground utility designs. Mr. McCarthy indicated he was not informed of the ordinance and learned of the waterline proposal by his neighbors.

 

Rika Mouw, Kachemak Drive resident, commented Ordinance 07-50 was brought to Council December 10, 2007 without prior notice to the residents in the affected area. She was notified by letter of the public hearing for tonight. The project is a hasty and ill conceived proposal. The Kachemak Drive Phase III LID has been turned down twice for specific reasons and until resolved it will be turned down. It is a disruption of natural hydrology, bluff erosion, increased flooding and zoning concerns. ADOT had no idea the project was proposed until contacted by resident Michael McCarthy. ADOT has jurisdiction of the right of way along Kachemak Drive and the project must be coordinated with them. Mrs. Mouw urged Council to postpone passing the ordinance. She is not opposed to the water/sewer LID, but is looking for a hydrological report and would like the work done in conjunction with DOT and not in piecemeal. Wetlands across the street should be given a conservation designation as they perform a function in flood and erosion control that will cost millions of dollars in infrastructure if the function of the wetlands is lost.

 

Geoff Coble, local hydrologist, said studies have been done and reports are extensive on Kachemak Drive. The road compacted the peat layer, creating a hydrologic layer, causing water levels and pressures higher on the bay side. The earliest aerial photos from the 1940’s show block erosion along Kachemak Drive that continues and is exacerbated by increased water pressures caused by the road. The study was done in 2005; DOT received the report and did mitigating cross culverts to relieve groundwater pressure. Other problems have caused flooding and erosion of the bluff. There are other issues in the entire surface water system; there is no real surface water drainage plan that works. A letter from DOT was provided. New utilities will affect the cross drains. When water and sewer is installed on Kachemak Drive residents would benefit from a storm drain, it would be environmentally responsible causing the eroding bluff to re-vegetate. 

 

Vicky Hodnick, Kachemak Drive resident, asks for postponement until further studies are done. Phase I was premature; Phase II and Phase III could be the end of their existence on Kachemak Drive. She owns easement on each side of the road and heard nothing about purchasing easements. Until there is consensus it is foolish to move forward.

 

Mayor Hornaday called for a motion for the adoption of Ordinance 07-50 by reading of title only for second and final reading.

 

HEIMBUCH/NOVAK – SO MOVED.

 

CHESLEY/ROBERTS – MOVED TO CONTINUE THIS ITEM TO A FUTURE MEETING WHEN PUBLIC WORKS AND THE CITY MANAGER HAVE AN OPPORTUNITY TO MEET WITH DOT, THE HYDROLOGIST AND PROPERTY OWNERS TO WORK OUT A LONG-TERM SOLUTION.

 

Councilmember Novak agrees with postponement. The LID failed twice due to lack of support of the local residents. Their concerns were not addressed. If we put in the water line now, they will not be able to hook up with it. It is an incomplete process that will not solve the problem.

 

Councilmember Heimbuch called for a point of order. The motion on the floor is for postponement.

 

Councilmember Novak moved for a friendly amendment to table. Mayor Hornaday ruled the amendment was not friendly.

 

Councilmember Heimbuch asked for input from City Manager Wrede as to why the City is moving forward on the water line.

 

City Manager Wrede answered he has no objection to postponement. He has had discussion with Public Works Director Carey Meyer and designing both water and sewer together makes sense. We have not done a good enough job talking to the public. The certified letter was sent out after the ordinance was introduced. There has been more work done than presented today. There have been discussions with DOT. The purpose of passing the ordinance is to have the money to do what the residents are asking for. We will hire an engineer and task him to find the impacts on the environment and erosion of the bluffs and hold community meetings to hear property owners concerns. It is an important project with tremendous implications for water quality and fire hydrant pressures.

 

WYTHE/HEIMBUCH - MOVED FOR A FRIENDLY AMENDMENT TO POSTPONE TO THE SECOND MEETING OF FEBRUARY (FEBRUARY 25TH), ADDING A SECOND PUBLIC HEARING AT OUR NEXT MEETING OF THIS MONTH (JANUARY 28TH).

Councilmember Shadle asked to talk about it first before postponing.

 

SHADLE – CALLED FOR THE QUESTION.

 

VOTE: (question) YES. ROBERTS, WYTHE, SHADLE, CHESLEY, NOVAK, HEIMBUCH

 

Motion carried. 

 

VOTE: (friendly amendment for postponement) YES. HEIMBUCH, ROBERTS, WYTHE, CHESLEY, NOVAK

 

VOTE: NO. SHADLE

 

Motion carried.

 

Councilmember Chesley stated while he was on the Planning Commission, subdivision actions on Kachemak Drive came before the commission. There are legitimate concerns of locating sewer and water on the same side with one subsurface disturbance. Public Works has done a great job, yet it is worth doing a little more work before launching off on the project.

 

VOTE: (postponement) YES. NOVAK, ROBERTS, WYTHE, CHESLEY

 

NO. HEIMBUCH, SHADLE

 

Motion carried.

 

C.        Ordinance 07-51, Of the Homer City Council Amending the FY 2007 General Fund    Operating Budget by Authorizing the Transfer of $55,000.00 from the Sale of Lot 18             Mattox Subdivision to the Fire Department Fleet Reserves. Wythe. Introduction December 10, 2007, conduct Public Hearing and Second Reading January 14, 2008.

 

There was no public testimony.

 

Mayor Hornaday called for a motion for the adoption of Ordinance 07-51 by reading of title only for second and final reading.

 

WYTHE/HEIMBUCH - SO MOVED.

 

There was no discussion.

 

VOTE: YES. NON OBJECTION. UNANIMOUS CONSENT.

 

Motion carried.

 

ORDINANCE(S)

 

A.        Ordinance 08-02, Of the City Council of Homer, Alaska Authorizing the City to Issue General Obligation Bonds in the Principal Amount of Not to Exceed $6,000,000 to Finance Part of the Cost of the Planning, Design, Construction and Equipping of a New      City Hall and Town Square (Plaza) and Related Capital Improvements; and to Submit the             Question of the Issuance of Such Bonds to the Qualified Voters of the City at the March            25, 2008 Special Election. City Manager. Recommend Introduction January 14, 2008,     conduct Public Hearing and Second Reading on January 28, 2008.

 

Mayor Hornaday called for a motion for the adoption of Ordinance 08-02 for introduction and first reading by reading of title only.

 

HEIMBUCH/NOVAK – SO MOVED.

 

Councilmember Heimbuch asked if failure of the $6M bond issue would preclude moving forward with construction. City Manager Wrede answered it would be a Council decision; if the vote failed Council would need to take stock. Was it a vote against the project or against long term debt? Other financing alternatives are available if Council wants to move forward. Bond sales are the best way to go to get the best financing with the least strings attached, but it is not the only way. City Hall construction is not to exceed $6M, by the time bonds are sold we may not have to sell that many if there is a reduction in construction costs and grants and appropriations are obtained. The architects are still competent the building and square will be constructed under $10M. Infrastructure will have partners and land owners, along with the HAWSP fund.

 

Councilmember Shadle favors the project with a cost ceiling on it. City Manager Wrede stated by March 10th we will have 35% plans with costs and a preliminary plat to make a cost estimate for water, sewer and roads. We also should have the trade outlined with our partner, CIRI. We will know what it will cost the City for the land needed for Town Square. We will plat for long-term planning purposes, although we do not need to fill every road right away.

 

VOTE: YES. NON OBJECTION. UNANIMOUS CONSENT.

 

Motion carried.

 

CITY MANAGER’S REPORT

 

A.                 City Manager’s Report

 

  1.  State Transportation Bond Issue: Governor Palin and members of the Legislature have been discussing a large bond issue this year for statewide transportation projects. We have been contacted by Representative Seaton on this issue and the Mayor and I have discussed it several times recently. As you know, the Council has several top transportation priorities. They include the Deep Water Dock expansion, the East Boat Harbor, intersection improvements, Main Street upgrades, to name a few. The last two are legitimate and clear State responsibilities. It is probably a good idea for the Council to have a discussion about which of these projects is its top transportation priority if a bond measure is approved. That way the City can send a clear and unified signal to the Legislature and have a better chance of having its project included.
  2. Public Art and the City Hall / Town Square Project: The Public Arts Committee is working hard on the City Hall / Town Square Project. One of its top priorities is to make sure it is in a position to incorporate public art into the project at the initial stages, as it is being designed. A Public Art Selection Committee has already been formed and RFP’s for the solicitation of public art are scheduled to go out this week. There is one thing I would like to mention to the Council so that you can think about it. This issue is being discussed by the Public Arts Committee and the Committee is likely to bring it to the Council’s attention soon. HCC 18.07 entitled Funds for Works of Art in Public Places ( the 1% for art ordinance) provides that 1% of the total cost of construction for a large public capital project shall be provided for public art. The amount to be set aside for art is capped at $70,000 unless additional money can be raised from private sources. Sometimes, there are creative ways to spend more on art but still stay within the parameters of this ordinance. For example, we spent more than 1% on the library but that was because we incorporated art into features that we would have to purchase anyway. Functional features like the reference table are a good example. So, art could be incorporated into the regular construction budget. Here is the issue. The Public Arts Committee believes that $70,000 is an inadequate amount of money for a project that includes both a city hall/community building and a public square. Committee members have asked the staff if we could treat the building and the square as too separate projects. Our first response was probably not since we are treating this as one project both from a funding and planning perspective. However, that is really a question for the Council and I believe you have the authority to do that if you think it is appropriate. I do think we will be able to do some creative things to incorporate art into the normal construction budget again. I also think that the new building and the square will be real magnets for public art and that private contributions are definitely possible.
  3. AMHS Warehouse: It looks like we are back on track and progress is being made. AMHS recently sent us a letter describing how much land will be needed for a warehouse, staging area, and long term parking on Lot 48 (across form the terminal). DOT/PF is currently working on the necessary permits and the EA and we hope to amend the land use agreement shortly. Recall that I inform you several months ago that I had offered land for the warehouse rent free as part of an arrangement to keep the warehouse from being built right next to the terminal. I hope the Council is still on board with that. You should have a lease agreement and/or an amended land use agreement before you shortly. 
  4. Deputy Commissioner DOT/PF to visit. On Tuesday, the 15th, DOT/PF Deputy Commissioner Dennis Hardy will be here. Mr. Hardy is the Deputy Commissioner responsible for the Marine Highway System. Participants in the meeting include the Mayor, Rep. Seaton, Senator Stevens, Mayor Phil Morris, and myself. Topics will include proposed reduced ferry service in SW AK.
  5. South Peninsula Hospital Operating Agreement: Good news here. All parties have agreed to a new operating agreement. The Council agenda for this meeting contains a resolution approving the new Operating Agreement. One of the things that has changed since the resolution was drafted was that the SPH Service Area Board has also endorsed the new Agreement. So, it has now been endorsed by the Borough Administration, the Operating Board, the Service Area Board, and is under consideration by the Borough Assembly. Look for an updated, substitute resolution in the supplemental packet.
  6. Bond Financing / City Hall-Town Center: This Agenda contains a resolution establishing a special election date and an ordinance that authorizes placing a bond proposition on the ballot. I understand that this may appear like we are moving too fast but it is necessary in order to adhere to the construction schedule Council has adopted. Adopting this resolution at this meeting is the only way we can get pre-clearance from the Department of Justice in time to have a special election in March. One of the issues that I believe it will be critical for the administration and the Council to address is how we will make bond payments. Council members have individually made it clear that they want to do this without raising new taxes or cutting existing services. Regina and I will be working on some budget projects and possible bond costs for you. We should talk about this soon. Perhaps at the COW next meeting or first meeting in February.
  7. Bond Counsel: This agenda contains a resolution approving an Engagement Letter with Thomas Klinkner as Bond Counsel. The laws surrounding the sale of municipal bonds require special legal expertise and bond attorneys are relatively scarce in Alaska. Perkins Coie has bond attorneys in their Seattle and Chicago offices but I decided that it was best to go with an Alaska Attorney. Thomas Klinkner is one of the most experienced and qualified bond attorneys in the State. I have worked with him on two prior bond sales (the Chignik harbor and school construction in the Lake and Peninsula Borough.) I recommend approval.  
  8. New Fire Engine: The agenda contains a Resolution (08-06) which awards a contract to construct a new fire engine to the firm of Oregon Fire Equipment Co. Inc. in the amount of $465,531. This amount is considerably more than the estimate Council was provided when it agreed to issue an RFP for the new engine (350,000). Apparently costs have sky rocketed! This is a basic fire engine without a bunch of special bells and whistles. In our view, this is probably still a better deal in the long run than leasing or refurbishing. We have the option of now paying until the unit is completed which will be a year from now. So, if the Council uses the $331,000 in FY 07 Revenue Sharing and the $55,000 from the sale of land it talked about, we are about $80,000 short. The Fire Department Fleet Reserves will have a $168,279 ending balance at the end of this fiscal year.
  9. City Hall / Town Center schedule questions: The contractors are scheduled to present the City with completed 35% plans on or about March 10. However, the Special Bond Election is now scheduled for March 25.  This could mean that there are approximately two weeks in which the design team might be sitting around unable to work on this project; more if the Council is not able to certify the election until sometime in April. This is wasted time that we cannot afford if we want to stay on schedule. So, we are considering asking the Council, assuming that it likes the 35% plans, if it would approve a contract to move to 65% plans on March 10 with a provision in the contract that work can be stopped if the bond prop. fails. This would allow the design team to keep working. A completed design will be necessary anyway if the Council ultimately decides to finance this project another way.
  10. Old Library: The deadline for proposals has been extended for another 30 days. In hindsight, it was not a good idea to advertise for proposals in December.
  11. Council / PC Workshop: There has been some talk about scheduling the next quarterly Council / PC workshop. Dates in late January and February are being kicked around. It would be good for the Council to let us know what its preferences might be.
  12. Borough Matching Grant: The Borough Assembly has approved the City’s request for a $50,000 matching grant. This money originally came from the planning reserves which is where I will place it unless the Council has another idea. There is always a good use for money of course. Some individual Council members have discussed using the money to implement the Climate Action Plan. Some PC members have discussed using it for the much need update to the Spit Plan, which would be part of the Comp Plan.

 

 

City Manager Wrede announced the January 15, 2008 deadline for application for the $20,000 City property tax exemption.

 

B.         Games Report  

           

C.        Question of the Week -  What improvements could be made to City services? and

            If you could ask any Question of the Week what would that question be?

           

COMMITTEE REPORT

           

A.        Comprehensive Plan Community Advisory Committee  

 

B.         Public Arts Committee

            (January 17, 2008 Worksession 10:00 a.m. and Regular Meeting 11:00 a.m.)

 

C.        Transportation Advisory Committee

            (January 15, 2008 5:30 p.m.)

 

D.        City Hall - Town Square Review Committee

            (January 24, 2007 5:30 – 8:30 p.m. Open House)

 

E.         Permanent Fund Committee

            (April 10, 2008 6:00 p.m.)

 

PENDING BUSINESS

 

A.        Memorandum 07-192, from City Clerk, Re: Request for Executive Session pursuant   to AS   §44.62.310(C)(1), Matters, the Immediate Knowledge of which would Clearly       have an Adverse Effect upon the Finances of the Government Unit. (Land           Acquisition       for Water Treatment Plant.) Conduct immediately upon approval.  

 

Mayor Hornaday called for a motion for the approval of the recommendation for Executive Session to discuss land acquisition for the Water Treatment Plant.

 

WYTHE/NOVAK – SO MOVED.

 

There was no discussion

 

VOTE: YES. SHADLE, CHESLEY, NOVAK, HEIMBUCH, ROBERTS, WYTHE

 

Motion carried.

 

Council recessed to Executive Session at 7:53 p.m. and Mayor Hornaday reconvened the meeting at 8:22 p.m.

 

Mayor Pro Tempore Novak related Council gave City Manager Wrede direction on the issue.

 

B.         Resolution 07-123, Of the City Council of Homer, Alaska Authorizing Eminent Domain           Proceedings for Land Acquisition in Support of the Construction of the New Homer       Water Treatment Plant. City Manager/Public Works. Recommend adoption.

 

FROM 12/17/07 MEETING: MOTION ON THE FLOOR FOR THE ADOPTION OF RESOLUTION 07-123 BY READING OF TITLE ONLY.

 

WYTHE/NOVAK - MOVED TO AMEND IN THE NOW THEREFORE BE IT RESOLVED – FIRST LINE STRIKE “AUTHORIZES” AND CHANGE TO “DIRECTS”, FOURTH LINE STRIKE “AUTHORIZED” AND REPLACE WITH “DIRECTED” AND THEN AT THE COMPLETION OF THE SENTENCE WHERE IT SAYS AT ANY TIME THEREAFTER I WOULD LIKE TO ADD “SUCH FILINGS SHALL BE MADE NOT LATER THAN 4:00 P.M. ON FRIDAY, JANUARY 18, 2008.

 

There was no discussion.

 

VOTE: YES. NON OBJECTION. UNANIMOUS CONSENT.

 

Motion carried.

 

NEW BUSINESS

 

A.        Bid Opening - Request for Proposals

 

·        Lot 1:  141 West Pioneer Ave - Old Homer Public Library building with 3,441 sq. ft. and approximately 17,000 sq. ft. of land feet of land. Appraised Value & Minimum bid is $462,500.

·        Lot 2:  Plat No. 88-43, containing 1.312 acres (approximately 59,000 Square feet) of vacant land with 215 feet of frontage on Main Street. Appraised Value & Minimum bid is $225,000.

 

WYTHE/SHADLE - MOVED TO POSTPONE NEW BUSINESS ITEM A. BID OPENING REQUEST FOR PROPOSALS TO OUR REGULAR MEETING ON FEBRUARY 11, 2008.

 

City Manager Wrede explained the RFP was extended to February 8, 2008 as there was little activity over the holiday. It is Council’s decision whether to extend the RFP.

 

Councilmember Novak voiced concern the middle of winter was the worst time to sell property. Waiting until May or June may produce the highest and best response to the RFP.

 

NOVAK/CHESLEY – MOVED TO POSTPONE AND REISSUE THE RFP IN MAY.

 

Discussion ensued if it was in the City’s best interest to postpone due to the state of the economy. City Manager Wrede added he was surprised only three people picked up the RFP, yet the day before the RFP deadline he had five people contact him. An ad has been placed in both local newspapers for three weeks and the Anchorage Daily News. Response to the advertisement could be evaluated after one month and Council could wait until spring. Council discussed the values of the properties in the busy season versus winter. The expense of continued maintenance on the building may balance increased profits gained by waiting five months.

 

HEIMBUCH – CALLED FOR THE QUESTION.

 

VOTE: (question) YES. WYTHE, SHADLE, CHESLEY, HEIMBUCH ROBERTS

VOTE: NO. NOVAK

 

Motion carried.

 

VOTE: (postpone to May) YES. CHESLEY, NOVAK

VOTE: NO. ROBERTS, WYTHE, SHADLE, HEIMBUCH

 

Motion failed.

 

VOTE: (main motion postpone to February 11) YES. HEIMBUCH, ROBERTS, WYTHE, SHADLE, CHESLEY

VOTE: NO. NOVAK

 

Motion carried.

 

RESOLUTIONS

 

A.        Resolution 08-02, Of the City Council of Homer, Alaska, Calling for a Special Election           to be Held in the City on March 25, 2008 for the Purpose of Submitting to the Qualified Voters of the City a Proposition for the Issuance of General Obligation Bonds for the          Construction of a New City Hall and Town Square (Plaza) and Related Capital             Improvements. City Manager. Recommend adoption.

 

Mayor Hornaday called for a motion for the adoption of Resolution 08-02 by reading of title only.

 

WYTHE/HEIMBUCH – SO MOVED.

 

There was no discussion.

 

VOTE: YES. NON OBJECTION. UNANIMOUS CONSENT.

 

Motion carried.

 

Mayor Hornaday began to read Resolution 08-04. Councilmember Heimbuch called for a point of order to clarify the agenda.

 

B.         Resolution 08-03, Of the City Council of Homer, Alaska Authorizing and Approving an           Engagement Letter in the Amount of $13,750 Plus Costs with Thomas F. Klinkner as         Bond Counsel for the Proposed City Hall-Town Square General Obligation Bond Sale   and Special Election. City Manager. Recommend adoption.

 

Mayor Hornaday called for a motion for the adoption of Resolution 08-03 by reading of title only.

 

There was no discussion.

 

VOTE: YES. NON OBJECTION. UNANIMOUS CONSENT.

 

Motion carried.

 

A.                 Resolution 08-04, Of the City Council of Homer, Alaska, Approving the Proposed New Sublease and Operating Agreement Between the Kenai Peninsula Borough and the South Peninsula Hospital Operating Board. City Manager. Recommend adoption.

 

Resolution 08-04(S), Of the City Council of Homer, Alaska Approving the Proposed New Sublease and Operating Agreement Between the Kenai Peninsula Borough and the South Peninsula Hospital Operating Board. City Manager. Recommend adoption.

 

NOVAK/WYTHE – MOVED FOR THE ADOPTION OF RESOLUTION 08-04 BY READING OF TITLE ONLY.

 

WYTHE/NOVAK – MOVED FOR THE ADOPTION OF SUBSTITUTE RESOLUTION 08-04(S).

 

There was no discussion.

 

VOTE: YES. NON OBJECTION. UNANIMOUS CONSENT.

 

Motion carried.

 

D.        Resolution 08-05, Of the City Council of Homer, Alaska Appointing Councilmembers             ____________ and ______________ for Calendar Year 2008 to Join the City Manager in             Representing the City    of Homer in Discussion and Negotiations with Homer Electric           Association. Chesley.    Recommend adoption.

 

Resolution 08-05(S), Of the City Council of Homer, Alaska Appointing Councilmembers ____________ and ______________ for Calendar Year 2008 to Join the City Manager in Representing the City of Homer in Developing a Collaborative Relationship with Homer Electric Association. Chesley. Recommend adoption.

 

Mayor Hornaday called for a motion for the adoption of Resolution 08-05 by reading of title only.

 

CHESLEY/ROBERTS – SO MOVED.

 

Councilmember Chesley explained the resolution was brought forward since the adoption of the Climate Action Plan. He has spent time researching how municipalities have gone forward to address climate change. Federal and State monies are identified for alternative energy projects and monies are available in carbon offsets for municipalities getting projects recognized to receive funds from grant monies from the entities engaged in the projects. He proposes to follow a model similar to what Council did with the Town Center plan. We have had two councilmembers on the Town Center Development Committee and subsequent committees act as diplomats in engaging with the entities. The councilmembers, along with the City Manager, can set up a mechanism to communicate with HEA for dialog on projects and to identify sources of funding.

 

ROBERTS/NOVAK - MOVED TO REPLACE THE RESOLUTION WITH SUBSTITUTE RESOLUTION 08-05(S).

 

Councilmember Wythe disclosed she is an employee of Homer Electric Association.

 

Mayor Hornaday asked if it would affect the way she voted on the resolution; Councilmember Wythe answered it would not. Mayor Hornaday declared no conflict of interest.

 

HEIMBUCH/ROBERTS – MOVED TO REPLACE THE FIRST BLANK WITH COUNCILMEMBER CHESLEY FOR INCLUSION IN THE COLLABORATIVE RELATIONSHIP.

 

There was no discussion.

 

VOTE: YES. NON OBJECTION. UNANIMOUS CONSENT.

 

Motion carried.

 

NOVAK/CHESLEY - MOVED TO ADD A SECOND INDIVIDUAL TO THAT LIST, I WOULD LIKE TO SUBMIT THE NAME OF FRANCIE ROBERTS.

 

There was no discussion.

 

VOTE: YES. NON OBJECTION. UNANIMOUS CONSENT.

 

Motion carried.

 

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

 

Motion carried.

 

E.         Resolution 08-06, Of the Homer City Council Awarding a Contract for Construction of           the Fire Engine. City Clerk. Recommend adoption.

 

            Memorandum 08-05 from Fire Chief as backup.

 

Mayor Hornaday called for a motion for the adoption of Resolution 08-06 by reading of title only.

 

NOVAK/WYTHE – SO MOVED.

 

There was no discussion.

 

VOTE: YES. NON OBJECTION. UNANIMOUS CONSENT.

 

Motion carried.

 

F.         Resolution 08-07, Of the City Council of Homer, Alaska Establishing a Sustainability   Fund. Chesley. Recommend adoption.

 

Mayor Hornaday called for a motion for the adoption of Resolution 08-07 by reading of title only.

 

CHESLEY/NOVAK – SO MOVED.

 

The CAP suggests a fiduciary fund be created for receipt of monies to implement the plan. In the future a resolution will be brought forward to establish the perimeters of the sustainability fund.

 

WYTHE/CHESLEY - MOVED TO ADD AN ADDITIONAL WHEREAS TO SAY:  WHEREAS, IT IS DESIRABLE TO INCLUDE A CHART OF ACCOUNTS FOR THE PURPOSES OF TRACKING EXPENSES AND SAVINGS RELATED TO THE IMPLEMENTATION OF THE CAP.

 

There will be more items that need accounting, a set of accounts would track everything related to the CAP.

 

VOTE: YES. NON OBJECTION. UNANIMOUS CONSENT.

 

Motion carried.

 

WYTHE/ROBERTS – MOVED TO ADD A SEPARATE BE IT FURTHER RESOLVED: THAT THE CHART OF ACCOUNTS FOR THE PURPOSES OF TRACKING PROCEEDS RELATED TO THE CAP AND USES FOR THE MONIES WOULD BE ESTABLISHED.

 

There was no discussion.

 

VOTE: YES. NON OBJECTION. UNANIMOUS CONSENT.

 

Motion carried.

 

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

 

Motion carried.

 

G.                 Resolution 08-08, Of the City Council of Homer, Alaska, Awarding the Contract for Investment of the Permanent Fund to ­______ of ­___________ in the Amount of _________ and Authorizing the City Manager to Execute the Appropriate documents. City Clerk. Recommend adoption.

 

WYTHE/NOVAK - MOVED FOR THE ADOPTION OF RESOLUTION 08-08 BY READING OF TITLE.

 

NOVAK/WYTHE – MOVED TO POSTPONE UNTIL JANUARY 28TH.

 

There was no discussion.

 

VOTE: YES. NON OBJECTION. UNANIMOUS CONSENT.

 

Motion carried.

 

COMMENTS OF THE AUDIENCE

 

Mayor Hornaday explained the water/sewer rates were discussed at length at the Committee of the Whole meeting. Finance Director Harville is working on tweaking #3. Residential rates were maintained as they were; commercial rates were raised due to those customers using 60% of the water. Reduced was the amount for businesses that close during the winter. Finance Director Harville is working on varying rates for commercial users based on their usage.  

 

Dean Ravin owns commercial property and operates a small business. He was issued a new water rate schedule last week and was unaware of the proposed revision. The new customer rate of $90 for zero water usage equates to $96.75 x 12 months = $1,161 per year before he uses the first gallon of water. The rate is the same base charge as the Conifer Woods apartment buildings, Land’s End Resort and the South Peninsula Hospital. It is a gross misallocation for a shared municipal resource. He asked Council to revisit the rate structure for an equitable distribution. He recommended billing water and sewer services based strictly on a per gallon consumption basis.

 

Val McLay, city resident and former Mayor Pro Tempore, commented on water/sewer scenario #3. The monthly customer charge for commercial businesses using less than 5,000 gallons is $50. He has two employees and is not hooked up to City water even though it goes by him. He has hauled water and uses 1,500 to 1,800 gallons every two months, expending $35 to $40 per month for water. The monthly charge alone will cost more than the City water he pays for now. Presently it is unfair to have small businesses share water rates with the commercial big guys. Looking at smaller usage businesses to set the rates would be more fair. He urged Council to look at it and make it fair for everyone. The value of water is going up; the demand is going up dramatically.

 

Bill Marley, city resident, commented on water rates, with commercial users being charged three times the amount of residents. It is discrimination for the same service. A lady on Ocean Drive is struggling to make a business, does not own the building, but expenses have to be related back to the lessee. He has a hangar at the Homer Airport for personal use and the assessment fee would be $2,021 per year, even though he uses less water. Although he had a business license, accountants say it may not be a business from a tax view as he has no employees, no revenue or expenses.

 

Councilmember Heimbuch asked how it is discriminatory for different rates for residential and commercial users. He questioned if each used the same amount of gallons per month should they have the same base rate?

 

Bill Marley answered the base rates should be the same, as the services have the same value. Seventy percent of the water is used by commercial, fish processing and car washes would use more, the number may be skewed towards a few rather than repress of commercial people.

 

Dan Boone, city resident, commented on Planning Staff Report 08-3 about a determination of wind generators as allowable for height. He can not see a difference between a TV antennae and wind generator tower. The City should look at ways of promoting alternative energy.

 

Councilmember Chesley was at the Planning Commission meeting when the report was presented. He testified, asking the Planning Commission not to take action until Council could view it. We are just implementing the CAP and it may be premature to think of limiting heights of wind generator towers before wind studies have been done.

 

Stan Anderson has been asked if it is too late to impeach. We must impeach now to reverse our President’s practice of dismantling the American system of constitutional checks and balances and replacing them with an executive government operating in secret by a few. We cannot afford nor should we risk 12 more months of lawless government. We must reverse the precedence and not allow them to stand for any future presidency. Vice President Cheney asserts if a presidential act can be related to national security it is legal, even when it clearly violates the law. A free showing of Cheney’s Law will be offered at the Etude. On the morning of 911 Vice President Cheney told his lieutenants the country had now entered a period where the country would be ruled by men rather than laws and the period would last a long time. Hundreds of Homer students have taken notice, a draft resolution has been provided to Council and he asked that the resolution be passed by Council.

 

George Meeker, city resident, served in World War II in the Naval Air Core. He returned after 75,000 miles in the Pacific dodging torpedoes and kamakazies. His younger brother was killed in the Philippines. He has had an interesting forty years since, serving in the Kansas House of Representatives for six years along with other organizations. You learn to listen and consider public interests. In listening to others, he agrees on impeachment, and encouraging the Judicial Commission to hold hearings and the City Council to pass a resolution.

 

Kate Finn, Anchor Point resident, commented it is the groups third time here and she is grieved no one on the Council is willing to sponsor a resolution for the agenda. Nearly 800 people have signed the petition to impeach Bush and Cheney. It is worthy of discussion. The Democratic process requires action of individual and small government bodies. If we do not impeach we are establishing a legacy of silence and encouraging silence in Washington, D.C. If we seek the truth we will be establishing a trend. Silence will create a future where silence may be our only choice.

 

Judy Nester, East End Road resident, is new to Homer. She lived in Maryland on a sailboat and as a civilian worked for the Defense Department. She left Annapolis to see the world. She has never been involved in activism, is proud to be an American and for years has followed the plan. While traveling they ran into the Iraq war. We have never invaded or attacked a country without being attacked first or by being invited by legal government of that country until Bush declared war on Iraq. Through satellite radio she started hearing more things. She asked that the impeachment issue be put on the agenda for discussion.

 

Amy Bollenbach, Homer Citizens for Impeachment, stated Council does not want to pass a resolution to ask the Judicial Committee to impeach Bush and Cheney as it will be a divisive issue in Homer. For 3 ½ months on each Saturday the group has been at the park. They have seen few dissenters; most people honk their horns and wave. Ms. Bollenbach offered free books to Council. She called a lobbyist in Washington, D.C. and asked why impeachment was not done. Her lobbyist friend responded there are too many conservative Democrats that are really Republicans. Bi-partisanship is needed rather than a mockery. She asked Council to act and pass a resolution.

 

COMMENTS OF THE CITY ATTORNEY

 

City Attorney Tans was not present.

 

COMMENTS OF THE CITY CLERK

 

City Clerk Johnson had no comments.

 

COMMENTS OF THE CITY MANAGER

 

City Manager Wrede commented as to Ordinance 07-50 that the City will do its best in the next month to have community meetings and treat it like any other LID, explaining the intentions. 

 

COMMENTS OF THE MAYOR

 

Mayor Hornaday commented it is the first meeting of the year and he wished all a good year.

 

COMMENTS OF THE CITY COUNCIL

 

Councilmember Novak thanked those who testified about the water/sewer rates and concerns about government. Town Square Open House is scheduled for January 24th from 5:30 to 8:30 p.m. It will be a time to present proposals and illustrated drawings.

 

Councilmember Shadle asked that we all pray for the families that lost those dads on the plane. As a fisherman himself he can relate. One of the fathers had nine kids.

 

Councilmember Wythe welcomed Councilmember Shadle home and stated she was aggrieved that we failed to have the discussion session on Mr. Shadle’s lack of appearance at the ethics hearing on the agenda. She requested the Executive Session be placed on the next agenda.

 

Councilmembers Chesley, Heimbuch and Roberts had no comments.

 

 

 

 

ADJOURNMENT

 

There being no further business to come before the Council the meeting was adjourned at 9:20 p.m. by Mayor James C. Hornaday. The next Regular Meeting is scheduled for Monday, January 28, 2008 at 7 p.m. and the next Committee of the Whole is scheduled for Monday, January 28, 2008 at 4 p.m. All meetings scheduled to be held in the Homer City Hall Cowles Council Chambers located at 491 E. Pioneer Avenue, Homer, Alaska.

 

______________________________

JO JOHNSON, CMC, CITY CLERK

 

Approved: _____________________