Session 06-04 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 Cowles Council Chambers located at 491 E Pioneer Avenue, Homer, Alaska, and opened with the Pledge of Allegiance.

PRESENT: COUNCILMEMBERS: HEIMBUCH, McLAY, NOVAK, SHADLE, STARK, WYTHE.

STAFF: CITY CLERK CALHOUN

CITY MANAGER WREDE

FINANCE DIRECTOR HARVILLE

PORT/HARBOR DIRECTOR DEAN

PUBLIC WORKS DIRECTOR MEYER

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 5:30 p.m. Regarding Presentation by Tom Crafford, Large Mine Permitting Coordinator for the State of Alaska, Presentation on the Water and Sewer Master Plan, Setting the Land Allocation Plan Worksession date for February 27, 2006 during Committee of the Whole, 4 p.m., Worksession with HEA on February 27, 2006 at 5:30 p.m Re: Underground Utility Ordinance 05-39(S), and on the Regular Meeting Agenda items. Held in the Homer City Hall, Cowles Council Chambers.

AGENDA APPROVAL

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

The agenda was approved by consensus of the City Council with the following additions: Written public comments received regarding Ordinance 06-01, HEA letters regarding Ordinance 06-39(S), Written public comments received regarding Resolution 06-10. Addition of Mayoral Proclamation in Memoriam of former Councilmember Mark Olaf Guldseth. Addition to City Manager Report, Fire Chief Memo regarding vehicle repairs. Council added, under Announcements... an explanation regarding Resolution 06-09(S)(A). City Manager Wrede asked that a LAB report be added under ..... Commission Reports.

PUBLIC COMMENTS UPON MATTERS ALREADY ON THE AGENDA

Public Comments upon any matter except Visitors - Northern Dynasty and Tom Crafford State Large Mine Permitting Coordinator, and Public Hearing Items Ordinance 06-01, Amending Homer City Code Chapter 5, Health and Public Safety, to Add a New Chapter Prohibiting the Intentional Feeding and Baiting of Certain Predatory and Scavenger Birds and Ordinance 06-02, Authorizing the Expenditure of Homer Accelerated Water and Sewer Program (HAWSP) Funds in the Amount of $98,000.00 for Constructing an Alternative Access to Pressure Reducing Valve (PRV) Stations At Mid Hill and Hill Top Stations.

Frank Griswold, City resident, expressed his hope that the Council would pull Resolution 06-13 for discussion, adding that he does not have time to talk about this and that he would like to talk about Ordinance 05-17, appeal procedures, that Ordinance 05-17(S) is just as unethical, repressive and dishonest as Ordinance 05-17. Mr. Griswold stated the following about the Ordinance:

• •It does not represent the will of the people.

• •The whereas clause in line 26 is a total misrepresentation of the law.

• •The Earth Movers vs. Fairbanks case was rendered by the Alaska Supreme Court in 1994, five years before the City of Homer adopted the current appeal regulations via Ordinance 99-8A. That Ordinance was enacted with the blessing of the City Attorney. If it were unlawful the City Attorney would have likely said so.

• •Earth Movers only established that one could not appeal a zoning matter simply to restrict business competition.

• •The Alaska Supreme Court has never ruled that a tax payer citizen standing does not apply in zoning matters and has never stated that granting tax payer citizen standing, per se, would unreasonably interfere with the use and development of private property or impair the free enterprise system.

• •On September 9, 1997, three years after the Earth Mover's case, Judge Link ruled, as follows in a zoning appeal captioned, COB vs. City of Homer: (leaving out the citations) The concept of standing has been interpreted broadly in Alaska. The basic requirement for standing in Alaska is adversity. The Alaska Supreme Court recognizes interest injury standing and tax payer citizen standing. Tax payer citizen standing will be granted if certain criteria are satisfied. First the case must be one of public significance. Second the plaintiff must be appropriate. This means the plaintiff must have an adverse interest. If another party is more directly affected by the outcome the plaintiff may be denied standing. Finally, the plaintiff must be capable, must be capably and completely represented. Physician asserted.

• •The whereas clause on line 35 of the Ordinance, states that whereas recent experiences of the Planning Commission and Board of Adjustment reveal there is confusion and uncertainty about the standing of persons to appeal under the current Code, which can and should be eliminated by eliminating the Code. This confusion has been created by the City Attorney.

• •The Commission and Board have never denied standing to any person who has filed an appeal, and rightfully so.

• •No legislative body in Alaska has the right to deny a citizen's right to raise an issue of public significance, just because his ox has not been gored.

• •Public interest litigation is encouraged by courts.

• •At line 179 of this Ordinance, it states that: For the purposes of this title to be a person aggrieved, a person must show proof of the adverse affect of the action or the determination that has or could have on the use, enjoyment or value of the real property owned by that person. An interest that is no different from that of the general public is not sufficient.

• •There are two major things wrong with that: One, appellant has to be a property owner - renters and leasers would have no voice. Two, if everyone in the community could be adversely affected by an action and all to the same degree, nobody would be allowed to appeal.

• •What if some permit were issued that would potentially endangered the City water supply? Wouldn't you want somebody to appeal it?

• •At Line 182 the following language is deleted: Any person who was entitled under section 21.69.030 to notice of a public hearing on an application for.. Time up.

Kevin Hogan, City resident, commended Mr. Griswold's ability to write his comments. Mr. Hogan spoke to Resolution 06-10 regarding Spit Leasing, advised that he submitted a letter to the Mayor and Council via email and inquired if they had received this. All confirmed that this was received and is in the supplemental packet. He commented about an error on the minutes from the last meeting, that he was not in favor of the Resolution as written. He noted that he included in his letter some suggestions for amending the Resolution:

• •One thing the City needs to do is to designate a staff person, possibly part time, to handle some of these matters.

• •This has been dumped in the laps of a lot of people that are just over worked and therefore, has not gotten the attention that it needs.

• •A Task Force consisting of current lease holders, prospective applicants, business bankers, realtors and target industry to review the Lease Policy.

• •There are some problems with the current lease policy. It is not a lack of advertising the leases. There were plenty who showed interest regarding the last RFP. The terms that the City insists on specifically - retaining ownership of all improvements at the end of a lease term. No one will go for that.

• •The City adopted that position based on the Fish Factory lease. Everyone has lost sight of the fact that the improvements to that property were owned by the City initially and sold to the tenant at the rate of $200 per month for over 20 years, for a $20,000.00 sales price.

Mr. Hogan stated that if the City wants to develop improvements on the lease property that he is proposing and provide that kind of deal, he'd love to have it. The way the Resolution is worded right now will not solve the problem. This issue needs to be looked at and worked over some more.

Mr. Hogan voiced his hope for more revisions. He thanked the Council.

Jackie Eisenberg, City resident, commented about a concern regarding Resolution 06-10, specifically in regard to the Manley Building. She advised that she is a representative for Snug Harbor Seafood in Homer, which operates primarily February through November, with the peak season March through July. She said that it is her understanding that the City is considering demolishing the Manley Building on Fish Dock Road on an expedited basis, possibly as soon as March or April of this year. She expressed great concerns regarding the context in which these decisions may be taking place. She said that she is aware that Councilmember Shadle had taken a great interest in this subject and that she feels he has a conflict of interest in being involved in any way with decisions regarding this particular property as she is one of two tenants currently occupying the building. She stated that she is Mr. Shadle's ex wife and that they are currently involved in heavy litigation. She reported that on October 26th, a Special meeting of the Port and Harbor Advisory Commission, the focus was on the Lease Policy of Fish Dock Road and that Mr. Shadle was the only visitor of record and that the minutes indicate that Mr. Shadle had gone to the three local banks in town discussing lease terms with the bank managers and then inquired about the McGee Lease, which includes the Manley Building. The minutes indicate that Councilmember Shadle said that he was told that the building did not meet fire marshal specifications and were condemned due to their grave danger of injurying someone. She stated that as a tenant she is aware that the buildings on Fish Dock Road are not up to current codes due to age and poor maintenance; however, there is no indication that the buildings pose grave danger of injuring someone. On November 16th, a Regular Meeting of the Port and Harbor Advisory Commission was held and pending business included one, City of Homer Lease Summary as requested by Councilmember Shadle and two, letters from three local banks as requested by Councilmember Shadle. On January 10th, Councilmember Shadle... Time is up. She asked for some assurance from the City that Mr. Shadle will no longer be given access to the Manley Building due to a restraining order provision that is in their current order, interjecting that she has contacted the City Manager who was unable to address this issue. No more time was allowed for this speaker.

Barb Seaman, Executive Director of Kachemak Heritage Land Trust and representing Kachemak Heritage Land Trust and one of the land owners referred to in Resolution 06-13, encouraged the Council to adopt Resolution 06-13. The Town Center Development Process has been collaborative from the very beginning and has involved a lot of cooperation. Together the land owners have already determined opportunities, plans that might work, designs that can be mixed and matched to work. The Ordinances that might come out of that plan are not impediments to development for any of these partners and actually provide an opportunity to increase value. She expressed her hope that the Council will take the chance to show support as the third land owner in this area for the Town Center Development Plan and for the work involved in it. She thanked the Council.

Bill Smith, resides at 335 East Bayview and former Chair of the former Town Center Development Committee, also spoke in favor of the Ordinance and whatever amendments the Council has to make. The collaborative aspect was very important from the beginning. He commented on going to the Fred Meyer Meeting last week and that their road plan comes up into City property. It is really important to work with them. He said that he would like to see whatever it takes of City commitment to that sort of cooperation. There was a very long public process. Mr. Smith stated that, in his experience, this has been the most publicly involved and supported plan seen in the City and beats anything he has seen. He stated that Fred Meyer said at the meeting that they were committed to following the designs of the Town Center Plan and in conversations with one of the architects, it was stated that Fred Meyer was not able to do some of the things that they wanted to with parking, because they were not allowed to take some credit for parking on the street. Mr. Smith pointed out that this is part of the Town Center Plan, to allow the developers to more intensely develop their property by moving some of the parking into pocket parks and on street parking. He asked the Council to take these things into consideration, because the whole intent was to help the developers develop this area to have a really nice Town Center. He thanked the Council.

Bob Shavelson, resident of the City of Homer, commented on the Ordinance regarding appeals and standing for individuals to challenge zoning and other matters. He commented on testifying on this before, looking at the language today and that he continues to think that the Council is going down the wrong road with the proposed language that would restrict appeals to individuals that own property. That's inherently discriminatory and unfair that only people who own property have the right to file an appeal. All citizens of Homer should have the right to redress for checks and balances with their local City government. He acknowledged that some people get concerned when appeals are brought, and questions raised about governmental process, but those checks and balances are built in and are a fundamental part of our democracy. He voiced his hope that the Council would not wipe these away with the proposed ordinance language. He stated that he spoke with some lawyers about this issue and they said that would be very ripe for some type of challenge. Looking down the road and trying to understand where this thing is going to end up could very well lead to a lengthy court fight that the City does not want to see for a simple thing like granting standing to all citizens of Homer. He urged the Council to not adopt that language tonight and thanked them for the opportunity to comment.

Roberta Highland, resident of the City of Homer, spoke to Ordinance 05-17 and backed up Bob Shavelson's comment. She stated that it sounds like the appeal process is a good working public process now and anything that would change that, make it costly to someone, she would have trouble with and just wants to go on record with that.

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 Wythe asked that Resolution 06-13 be placed under Resolutions as item B.

A. Homer City Council unapproved meeting minutes of January 9, 2006 Special and Regular Meetings. City Clerk. Recommend approval.

B. Ordinance 06-03, Of the City Council Authorizing the Use of Homer Accelerated Water and Sewer Program (HAWSP) Funds for Water Mainline Extensions, the use of Homer Accelerated Roads Program (HARP) Funds for Additional Gravel for Adams Street and Providing for a Deferred Assessment Process. City Manager Fiscal Note: For Water Line $243,320.00 East Hill and $59,840.00 for Adams Street Water Line. Gravel $13,500.00. Recommend introduction and set public hearing and second reading for February 13, 2006.

C. Ordinance 06-04, Of the City Council Authorizing the Use of Water/Sewer Utility Reserve Funds to Reimburse the Alaska Department of Transportation and Public Facilities (ADOT/PF) $41,130.94 for the Sterling Highway Homer Hill Utility Project 59282 and Authorizing the City Manager to Execute the Appropriate Documents. City Manager. Fiscal Note: Funds to be appropriated from the Water and Sewer Reserve Fund. Expenditure Professional Services account number 215-378-5210, $41,130.94. Recommend introduction and set public hearing and second reading for February 13, 2006.

D. Resolution 06-11, Of the Homer City Council Authorizing the Naming of a Garden at the New Homer Public Library, Margret Pate Memorial Garden. Mayor. Requested by LAB.

E. Resolution 06-12, Of the City Council of Homer, Alaska Awarding the Professional Planning and Engineering Services for the Design of Improvements for the Water Treatment Plant to the Firm of HDR of Anchorage, Alaska, Authorizing the City Manager to Negotiated a Contract in an Amount not to Exceed $480,000.00 and to Execute the Appropriate Documents. Fiscal Note: Budgeted Project 215-865. See Ordinance 05-56(S). City Clerk. Recommend adoption.

Memorandum 06-13, from Public Works as backup.

F. Resolution 06-13, Of the Homer City Council Encouraging All Land Owners and Stakeholders in the Town Center to Work Cooperatively and Coordinate their Efforts, so that Independent Developments Compliment and Support Each Other and Reflect a Broader Overall Town Center Vision, as Conceptually Illustrated in the Town Center Development Plan. Novak. Recommend adoption.

Placed under Resolutions as Item B.

HEIMBUCH/McLAY - SO MOVED FOR THE ADOPTION AND/OR APPROVAL OF THE RECOMMENDATIONS OF THE CONSENT AGENDA AS READ AND AMENDED.

There was no discussion.

VOTE: (Excluding Item F.) YES: NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

VISITORS

A. Northern Dynasty Re: Pebble Mine. (10 minutes)

Bruce Jenkins, Chief Operating Officer for Northern Dynasty Mines (NDM), gave a presentation on Pebble Mine and hard copy information was provided to the Mayor, Council, City Staff and attending public:

• •Updated the Council on the Pebble Mine Project, focusing on new developments and specific information related to material transport and port requirements.

• •North of Lake Iliamna, about 18 miles northwest of the town of Iliamna. Footprint of the project area represents about 0.06% of the total drainage area of the Nushagak/Mulchatna River watershed area. 25 miles from Lake Clark Park and within the headwaters of the south fork of Kokiuli River.

• •This is a major comparable project that they have been drilling since 2002. Total expenditures to end of 2005 is $68 million.

• •NDM is about to finalize its plans for 2006, with a commitment of at least $30 million in 2006. Environmental, community relations, drilling, and engineering work. Nearing total expenditure of $100 million.

• •This is a world class project and requires serious and significant effort to design it right and to go through the rigorous Federal and State permitting process.

• •Mineralization: Feasibility study for open pit. Minerals at depth, no minerals on surface. In deep zones to east reflects new discovery with grades two to three times of the feasibility study. The feasibility study has been deferred due to recent discovery.

• •Conceptually - underground block caving method. Extracting by underground mining methods. In addition to the open pit method.

• •Although optimistic, not sure if this is an economic deposit.

• •An integrated development plan needs to be developed.

• •Permitting has also been deferred pending the integrated development plan.

• •The size of the drill rigs in 2005 were not adequate to drill the depth that is needed in this new discovered area. Larger drill rigs will be placed through helicopter support this year.

• •Materials and concentrate transport alternatives: A significant amount of materials needs to be transported. During operations significant amount of materials and concentrate. An engineering study is currently evaluating two potential ports during the construction period. Deep Water Port at Homer, excellent existing infra structure and Kodiak Port. Engineering costs, site services and real estate.

• •Materials would be barged from the lower 48 to one of those two locations and transported to Williams Port and then to the project site. Existing road from Williams Port to Pile Bay and then barged across the lake.

• •The hope is that once the project is built there will be a road completed and possibly a Deep Water Port at the west side of Knutson Bay. Then use that Deep Water Port for the operations transport.

• •Alternative to building a Deep Water Port is to use Homer or Kodiak for the transport of materials for the operation of the mine and transport of concentrate. Which requires double handling and adds costs to the operations during the 40 plus year life of the mine. On the benefit side it means no capital expenditure for the construction of a port. Early days - no final decision made and that won't be known for at least a year.

• • Materials and concentrate transport alternatives include the base case to transport from the mine about 100 miles to Tidewater Port on a varied 6 to 8 inch concentrate slurry pipeline.

• •Another alternative is to use trucking as is used with Red Dog Mine.

• •Materials Transport - Construction estimated tons per year: Equipment 30,700, Building Materials 404,000, Mining Equipment 15,300 and Diesel 95,900 or 27 million gallons. Total tons just shy of 550,000 tons.

• •Materials Transport for Operations - estimated tons per year: Quick lime 144,000, Reagents 57,400, Mill consumables 42,800, tires 2,400 and diesel 84,100 (24 million gallons) total 420,000 tons.

• •Homer and Kodiak ports are being looked at by the engineering team as part of the feasibility study.

• •Portsite No. 1 - on the west side of Knutson Bay was selected by the Department of Transport and its independent engineering firm PND from Anchorage. Significant construction would be required about 3,500 linear feet of water front and 300 to 500 feet wide cut and fill operation to create the real estate for lime and fill station, concentrate holding area, dewatering site, concentrate pipeline and related ancillary facilities.

• •40,000 ton vessels would be docked there and ship loader would put the concentrate in dry form on the carriers to take to overseas smelters.

• •Alternative would be to create real estate at the port site, being evaluated by engineers.

• •1.2 million short tons of concentrate shipped per year as an estimate. Using 40,000 ton vessels is an estimated 30 ships per year. Assuming 11 years of shipping time with one year of possible down time due to weather or ice, averages about 3 concentrate ships per month.

• •Power supply and distribution - MOU with HEA. Current plan Brown field, under review and study, generation from Nikiski. Gas fired generation, gas from the Cook Inlet Basin. Real issue is price. Alternative fuels are being investigated. Power transmitted on lower corridor to Cook Inlet and submarine cable from Anchor Point.275 mega watts of power. Also provide power for the local communities adjacent to Pebble Mine.

• •This mine can be developed responsibly. It is possible to have the mine and protect the environment.

• •NDM welcomes dialog and looks for any and all opportunities for an informed and objective discussion of the issues associated with their mine.

• •Encouraged the Council to maintain an objective view and not be rushed into any decisions concerning the advocacy for the project or a position against the project until all the facts are on the table.

• •NDM is on state lands, have invited the state to invest their risk capital for the purposes of exploring and developing this project and NDM only asks for due process to be afforded the company and that NDM be given the opportunity to put their robust science and engineering before the multi year robust state and federal permitting process, which also includes significant stake holder involvement and review.

• •NDM is committed to a responsible mineral development approach. Have already undertaken a lot of work on the environmental and engineering side to ensure that the project is designed properly and the right alternatives selected.

• •NDM asks for the opportunity to prove that it can be done right and protect the sensitive fisheries and water and subsistence resources in Bristol Bay, while still allowing for mining development.

B. Tom Crafford, Large Mine Permitting Manager for the State of Alaska, Department of Natural Resources (DNR). (Up to 10 minutes.)

Mayor Hornaday noted that DEC had been invited to participate and had declined.

Tom Crafford gave a presentation on Large Mine Permitting. During the Committee of the Whole he gave a 30 minute detailed presentation. Written materials were provided.

• •It is illegal to pollute.

• •Mines have to be reclaimed.

• •The State requires financial assurance for mines.

• •Experienced regulators are involved in the pre permitting, permitting and operations of a mine as well as during reclamation.

• •The Pebble permitting process, per se, has not begun.

• •The public is very much a part of this process and public participation is welcomed.

• •There are many opportunities afforded for public participation.

• •The large mine permitting team within the State of Alaska consists of representatives from several agencies with DNR as the lead agency.

• •12 Regulatory requirements for mines including plan of operation, reclamation plan and bonding, solid waste permitting, waste materials disposal, dam safety certification, disposal of tailings, air quality permits typically required if power plants on site and in relation to dust emissions associated with haulage, etc.

• •During mining operations there are regular inspections

• •Annual reports required by operator.

• •Annual meetings wherein operator describes activities and how the activities are in accordance or departure from the plan of operation.

• •Environmental performance is audited by an independent third party, typically done every five years. Audits are accompanied by a recalculation of the financial assurance for that mine. Adjustments may be required at that point and the operator will be responsible, if increases, to provide for those additional financial assurances.

As an example he showed a picture of the Fort Knox mine, an open pit mine.

• •Federal Agencies involved in the permitting, EPA, ACOE, F & W, NMFS, and federal land managers, if on federal land, include BLM.

• •Federal regulatory requirements, section 402 of the Clean Water Act, Discharge elimination system that is the NPDES permit, Section 404 Dredge and Fill permit with the ACOE.

• •NEPA Process, National Environmental Policy Act. Environmental Impact Statements (EIS). This is not a permit it is a process that involves the analysis of alternatives.

He showed a picture of the Pogo Mine as an example of an underground mine in the final stages of development. Opening ceremony planned for this June.

• •On the Pogo Mine there was a public input, review and scoping of the project. Draft EIS. Draft permits are issued by the state so that the public could review these as well.

• •Public comments were incorporated into the EIS.

Mr. Crafford emphasized that a lot of detail goes into these studies. Three years of base line studies and three years of permitting is the minimum amount of time.

What is included in base line studies?

• •Surface and ground water quality and quantity

• •Meteorology - determines water balance.

• •Aquatic life.

• •Water resources of the area,

• •Wildlife.

• •Wetlands

• •Socio economics.

• •Cultural resources.

• •Subsistence.

• •Visual resources.

• •Noise and air quality.

These are required before permitting begins. In the Pebble Mine Process - permitting has not yet begun. It is in the prescoping and environmental base line study period of time.

• •NDM is conducting these studies and has been for several years.

• •Originally permit application was anticipated in 2006, but now not until 2007.

• •After permitting application the scoping and issue identification will begin as part of the formal EIS process and a review of alternatives and analysis.

• •An issues resolution and then permitting decisions and the project would go into development, if it gets that far.

• •Then operation, reclamation and closure.

• •Through out this process there are multiple opportunities for public participation.

• •Outreach effort to address public concerns.

• •Additionally there are formal opportunities for tribal consultations on a government to government basis as mandated by the federal government.

• •Emphasis on open communications with all groups.

• •Strive to understand the issues and determine these as early as possible.

• • Design for closure.

• •Technical review of the mine plan and environmental data. Technical reviews are very extensive and exhaustive. Geochemistry of ore body and behavior of waste material on a post closure basis.

• •Coordination of public notice, hearings and public comments.

• •Determination of financial requirements for reclamation and closure. Engineering analysis is done - materials to be moved, equipment needed to move material, costs of equipment, associated labor, mobilization of those materials and supplies and all of this goes into generating the bond estimate.

• •Assure appropriate monitoring of air and water.

• •Reclamation success.

Mr. Crafford advised that all of this information and much more is available on the DNR website at http://www.dnr.state.ak.us/opmp/ or http://www.dnr.state.ak.us/mlw/mining/largemine/.

ANNOUNCEMENTS/PRESENTATIONS/BOROUGH REPORT/COMMISSION REPORTS

A. Mayoral Proclamation, In Memoriam of Margret Pate

B. Mayoral Proclamation, In Memoriam of former Councilmember Mark Olaf Guldseth.

C. Clarification and explanation of Resolution 06-09(S)(A).

Councilmember Heimbuch noted that confusion exists among a number of individuals about Council intent on Resolution 06-09(S)(A). Elevated public interest in this issue warrants a clear statement on the task jointly required of the City Manager, the Library Director, and the University representative:

The Mayor Read:

The Resolution language calls for the named parties to offer the city a plan for a joint-use facility that meets some meaningful level of university library service needs and present it in such a way that the council can assess the impact on cost and function of the library. The city manager is to act as facilitator and be mindful that the council is expecting to judge a plan developed with the utmost regard to its fundamental purpose as a public library but without an attitude of preference or prejudice against a University presence in the facility. The fiscal and space analysis, along with community attitudes, are to be evaluated by the council in May 2007 for the express purpose of deciding at that time whether or not to approve a joint use agreement in the facility. The progress report and final record of this process are not expected to reflect that participants have agreed on the issues of operational concept or impacts. They should reflect that all parties have been fully and honestly engaged in the effort to show us what a joint use facility would be like and what it might require from the city of Homer.

D. LAB Report.

Nancy Lord, LAB member, gave a report.

• •Ideas to assist with the new Library operating expenses. Memo attached to City Manager Report.

• •Related policies are being worked on.

• •Margret Pate Memorial Garden, LAB thanked the Pate Family for the generous donation and the Homer Foundation, which is assisting with it. Margret Pate was a fabulous gardener and strong supporter of the Library from its inception. She was a donator to the current Library project and was a writer. She worked the book sales, was a Friend of the Library and in her 90s worked as a cashier for the book sales.

• •The garden is particularly valued because in the project cuts most of the landscaping was lost.

PUBLIC HEARING(S)

A. Ordinance 06-01, Of the City Council of the City of Homer, Alaska Amending Homer City Code Chapter 5, Health and Public Safety, to Add a New Chapter Prohibiting the Intentional Feeding and Baiting of Certain Predatory and Scavenger Birds. McLay. (First Reading January 9, 2006, Public Hearing January 23, 2006, Second Reading for February 13, 2006.)

Written testimony received is in the supplemental packet.

Roberta Highland spoke in support of Ordinance 06-01, that there has been increased problems, not only out on the Spit, but also increased numbers of crows in town. Whenever there are increases of birds and human beings involved in it, it generally can become a problem. The eagle has been one of the issues. She relayed becoming interested a couple of years ago when she started asking people what they thought and was quite surprised at how many people adamantly opposed the feeding of eagles. As humans do, they started pushing the envelop and pretty soon were feeding them in their back yards in the City, in town and out in neighborhoods. Then the photographers were doing their own eagle feeding on the Spit, which has caused some people to worry about public safety. People walking with their children and walking their dogs have seen some problems. There was no one to call; Fish and Game said that they don't do that, Fish and Wildlife said that they don't do that either. Ms. Highland emphasized that this is a public health and safety issue. When there are that many numbers increasing of certain birds it brings in other birds. She said that at this point she thinks this Ordinance a good idea and solution for the City. She thanked the Council.

Thomas Hagberg, Anchor Point, spoke about the eagle, the federally protected bird that just got off the endangered species list. There have been nine on the endangered species list that went extinct and 13 got off it, Fish and Game got off the Aleutian Canadian Geese, the predator removed was the fox and that the common rat is the big problem when it comes to Fish and Game species out there. He advised that he is a member of the Fish and Game Advisory Committee and that if he had not lived in Alaska for some 35 years he would be scared to death listening about the eagles carrying off the kids and the pets. He commented on raising chickens in Anchor Point for 25 years and that he has lost a ton of live stock to wildlife all the way from a goat to a chicken and he listed what livestock he has lost and to what type of wildlife and neighborhood dogs. He emphasized that he has never had an eagle take anything out of his yard and that the eagles are there year round. He commented on a red herring, that all airports hate all birds and that all airports have plans and permits to deal with birds. Crows and ducks on the Spit are not being fed, these are protected on the Spit.

Darrel Oliver, 785 Forget me Not lane, testified in objection to the Ordinance. He commented on reading the editorial in the Homer News, that the Homer Fish and Game Advisory Committee seems to have a reasonable compromise to the controversy. He commented on the motives associated with who feeds eagles and why, noting that if nobody went out to Jean Keene's yard she would still be out there taking care of the eagles, the birds. He said that he has issues with those who feed these birds at their B and B for the enjoyment of their clients and bring these birds into the neighborhoods that have kids and dogs. He commented that under the Fish and Game Advisory Committee proposal persons who have been feeding the eagles for 25 years or more could apply for a permit to continue doing so, adding that there has been a 25 year window to study the number of accidents at the airport via eagle collisions. He dropped off a couple of letters from people who are in town just to see the eagles. He also supplied a letter from Jean Keene in opposition to this Ordinance. He expressed appreciation for the Council's time, knowing that this is a very emotional issue and that they will be hearing some heated arguments. He noted that if this Ordinance is adopted there will have to be consequences, monitoring, and that there are probably a few volunteers that the City can put in a little blue truck with a book of tickets to go out and write citations to people who do this. He stated that there are things to be considered and thought through on how to work on this all. He wished the Council good luck and thanked them.

Duane Howe, veterinarian, commented about the six pages he has already given the Council about bird and eagle diseases. He emphasized that there really is no information on the eagles before the winter feeding and after, adding that it would be nice to know if the eagles are gaining or losing while on the Spit in the winter and the parasite level. He voiced opposition to the feeding situation, believing that this is conducive to disease transmission and especially with the West Nile Virus and Bird Flu. The chances of these diseases ending up in Homer, Alaska probably is not too great; however, there is that chance and should be considered in that it could get real serious.

Steve Kubrine, from Montana, visiting Homer to see the eagles, does contribute to the economy and that the tourist dollars are a small reason why Ms. Keene should be allowed to continue to help the eagles. He stated that she is representative of the unique Alaskan spirit to the rest of the United States and that she is in a special situation. He agreed with the compromise and that it sounds like a wonderful solution. He advised the Council that there is nowhere else in the world that there is anything like this and that he would hate to see it end. Mr. Kubrine informed the Council that he is a medical doctor and that he would like to see some documentation that anyone in the world has ever gotten a disease from an eagle, that he has never read about it or seen it, and that it is not a real reason to ban the feeding of the eagles. The 26 year tradition should be allowed to continue. He noted that he would not be here or spending his money here if it were not for the eagles, interjecting that he would also loose out on one of the greatest experiences of his life.

Councilmember McLay received permission to ask a question of Dr. Kubrine, if he has every seen anyone that had Bird Flu.

Dr. Kubrine stated he has not; however, has seen West Nile where there are no eagles.

Lee Mayhan, non resident that uses a lot of City facilities, testified that she is a retired nurse and volunteers at Homer Public Health, public health being one of her interests for 30 years. The purpose of Public Health and Safety is not to eradicate risks to the public, but to decrease risks. She stated that there is no doubt in her mind that the escalating bird population for 20 years, because of the Audubon count is different in Homer. She commented about the Audubon information. She expressed her concern that when people are feeding eagles other nuisance birds are attracted and the population of these birds has gone sky high over the past 20 years. She noted that Seward has the same set up as Homer, the difference is that people are feeding these birds in Homer:

• •At the Court House people were feeding these birds.

• •The other day at Eagle someone purchased a loaf of bread and was in the Eagle Parking lot feeding the crows right at the doorway.

• •At Women's services someone was feeding crows.

She expressed her concern with regard to Public Health and the amount of bird excrement and that there are many sources of infections. Saying that people have not been ill from bird excrement is not a good statement, because no one knows, its called cross contamination. The nuisance birds in Homer should be dealt with and that there are a lot of people feeding these birds not just one person. She expressed her hope that the Council would get away from the social emotional and get into the facts. Recommendations by Public Health are generally based on fact, such as the seat belt law. The real issue is the increase of the bird population. She thanked the Council.

Don Pitcher, resident of Homer area and professional photographer and travel writer with a Master's Degree in Natural Resources and did biological work for 15 years with the Federal and State agencies in remote parts of Alaska, expressed strong opposition to Ordinance 06-01. He expressed his feeling that its proponents have grossly distorted both the situation and the statistics. Proponents of the ban on feeding eagles, crows, ravens, gulls and kitty wakes claim that these are a hazard to local aircraft. He reported that today he called Homer Airport Manager Kevin Jones to get his thoughts and Mr. Jones said that Bald Eagles are indeed a potential hazard at the airport and that last year 17 eagles had to be hazed from the airfield. Mr. Jones also noted, according to Mr. Pitcher, that ducks, geese, crows and, most importantly, Sand Hill Cranes are a considerably more serious hazard to aircraft. In 2005 there were 111 Sand Hill Cranes that had to be hazed away from the airport run way, during the summer the crew does ten to fifteen patrols a day to keep Sand Hill Cranes and other birds out of the area. In the winter when Jean Keene is feeding the eagles, far fewer patrols are needed since the problem is not nearly as great. According to Mr. Jones there have been no recorded eagle strikes with planes in Homer, but in the last decade, or so, there have been seven strikes between Homer aircraft and Sand Hill Cranes, pheasants, mallards, warblers, cross bills, a coyote, and even a moose. He stated that he hears no proposals to ban the feeding of Sand Hill Cranes, pheasants or mallards, and that any sane feeding bane would include those species since these are a more serious danger to local planes. Supporters of the proposed Ordinance make considerable use of the wildlife hazard assessment of the Homer Airport in their effort to ban the feeding. The document does say that the feeding of the eagles is a potential hazard for aircraft and also points to a popular feed store much closer to the airport as another source of food for wild birds that could affect aircraft safety. Mr. Pitcher stated that he does not hear anyone suggesting that the Wagon Wheel be closed. 80% of the eagle photographs of national and international publications were taken right here in Homer. Octogenarian Jean Keene has been doing this for 26 years. The eagles of Homer have been featured in countless publications around the world including a cover story several years back in National Geographic. There is no doubt that Ms. Keene's feeding does bring more eagles to Homer in the winter, but the numbers are certainly not growing and in fact the peak number of eagles in the Audubon Society's Christmas Bird Count came fourteen years ago in 1991. According to these counts crow and raven numbers have increased in the last decade as have the numbers of magpies, Steller Jays, Black Capped Chickadees, Red Breasted Nuthatches, robins, crossbills, Pine Siskins Horned Grebes, Common Goldeneye, and Surf Scoters. He commented that he finds it interesting that the measure bans the feeding of eagles, crows, ravens, gulls and kittiwakes, but does not included other potentially predatory species that have increased in the last decade notably Stellar Jays and magpies. These are species that come to bird feeders that most people have outside their homes. He concluded that this is a senseless and unnecessary Ordinance and suggested that the Council speak with Airport Manager Kevin Jones.

Jonathan Faulkner, resident of Homer and operator of Lands' End Resort, invoked the spirit of Brother Asaiah in that this issue touches a little bit on the spiritual and touches a lot on the definition of Homer as a community. He stated that he is not here in defense of eagle feeding, but is here in defense of Jean Keene. He urged the Council to separate the innuendo, to separate the speculation from actual facts, because biologists work in actual facts. He said that he hears in a lot of this testimony speculation and hear say. He urged the Council to think about enforcement, that there is one thing worse then a bad policy and that is a policy that cannot be enforced. He pointed to the Ordinance on the storm berm and the use of drift wood for building fires, as completely unenforceable and in fact an Ordinance that the City does not enforce. Ordinance 06-01 is something similar and if on the books the City is not going to be able to enforce it. He stated that he does not believe economics should trump good biology, but in the absence of good biology one has to be aware of the economics. He testified to the economics, that eagle feeding has directly infused millions of dollars and that no one has done more to create a positive visitor image than Jean Keene. Regarding the human element, Mr. Faulkner stated that this cannot be measured and those who want to separate the emotion from the facts of this issue don't have a heart. He stated that one cannot know Jean Keene and what she has done without recognition, without any desire to be paid, and with nothing but love and not support her. Those who want to put her out of business and, in effect, take her life away from her at age 82 are not worthy of being heard. He submitted a letter from Hans and Cindy Koch dated January 23, 2006. He thanked the Council.

B. Ordinance 06-02, Of the City Council Authorizing the Expenditure of Homer Accelerated Water and Sewer Program (HAWSP) Funds in the Amount of $98,000.00 for Constructing an Alternative Access to Pressure Reducing Valve (PRV) Stations At Mid Hill and Hill Top Stations. City Manager. Fiscal Note: Funding source is the HAWSP to Expenditure Account 215-814 for the Alternative Access for the Replacement of Homer Hill Top and Mid Hill PRV Stations in the amount of $98,000.00. City Manager. (First Reading January 9, 2006, Public Hearing January and Second Reading January 23, 2006.)

There was no public testimony.

HEIMBUCH/NOVAK - MOVED TO ADOPT ORDINANCE 06-02 BY READING OF TITLE.

There was no discussion.

VOTE: YES: NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

Mayor called for a recess at 8:24 p.m., reconvening the meeting at 8:31 p.m.

ORDINANCE(S)

A. Ordinance 05-14(A), Of the City Council of the City of Homer, Alaska Amending Homer City Code Chapter 3.05, Budget to Add a New Section 3.05.046, General Permanent Fund. Wythe. (First Reading May 24, 2005, Public Hearing on June 13, 2005, Second Reading June 27, 2005 amended and deferred/moved to July 25, 2005,Referred to Six-Month Committee. Main Motion is on the floor as amended and referred to Committee on July 25, 2005. Committee Recommendations for November 14, 2005 as seen in Substitute, Postponed on November 14th, to December 12, 2005 to revise the Committee Substitute Main Motion as amended is back on the floor as postponed on December 12, 2005.)

A.1. Ordinance 05-14(A)(S), Of the City Council of the City of Homer, Alaska, Amending Homer City Code, to add a new Chapter 3.12, To Establish and Govern a Permanent Fund, and Amending Homer City Code Chapter 3.10, Investment and Collateralization of Public Funds to Add a New Section, 3.10.130 Relating to the Permanent Funds. Permanent Fund Committee with City Attorney revision. (Public Hearing November 14, 2005.)

A.2. Ordinance 05-14(S), Of the City Council of the City of Homer, Alaska, Amending Homer City Code to Add a New Chapter 3.12 to Establish and Govern a Permanent Fund, and Amending Homer City Code Chapter 3.10, Investment and Collateralization of Public Funds to Add a New Section 3.10.130, Relating to the Permanent Fund. PFC and City Attorney. (Recommend adopt this Ordinance)

Main Motion as amended is back on the floor: WYTHE/YOURKOWSKI - MOVED FOR THE ADOPTION OF ORDINANCE 05-14(A) BY READING OF TITLE ONLY FOR SECOND AND FINAL READING. STARK/MOVED TO AMEND ORDINANCE 05-14(A) TO REPLACE WITH ORDINANCE 05-14(A)(S) AS READ.

WYTHE/NOVAK - MOTION TO AMEND ORDINANCE 05-14(A)(S) TO SUBSTITUTE ORDINANCE 05-14(S), WHICH IS A COMPLETE SUBSTITUTION.

There was no discussion.

VOTE: (primary amendment to substitute Ordinance 05-14(S)) YES: NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

Councilmember Wythe encouraged the Council to support this Ordinance that has been worked on for about a year. She noted that the committee did a lot of work on the Ordinance and that in the packet there is a really good diagram schematic, page 197 of the packet, that City Attorney Tans put together. She elucidated the process if there were wind fall funds:

• •5% would be dropped into a non profit investment funds such as the City fund at the Homer Foundation.

• •Remaining 95% would be put into a fund, which would become the Permanent Fund.

• •From the Permanent Fund the investment of that portion would be divided - 40% into equities to generate continuous support income for the basis of the fund the remaining 60% would be placed into bonds and fixed income proceeds.

• •The proceeds to generate income that would be distributed into the general fund for the purposes of helping to support the balance.

• •Income goes to the general operating expense of the City.

• •Core of 60%, principal of that 60%, could also be available for the purpose of supplying loan funds to City projects.

She noted that this then builds a nice core and basis for long term financial benefit to the City of Homer and its residents.

Discussion about 5% that goes to the non profits, that perhaps this is a little excessive.

STARK/SHADLE - MOVE TO AMEND TO CHANGE IN 3.12.020 95% TO 99%.

There was some discussion. Should there be a cap rather than a percentage. The Permanent Fund Committee spent a great deal of time discussing the percentages. The 5% provides for benefit to the community. This would assist the City with funding non profits. Pros and cons were discussed. This would go to an investment fund of the Homer Foundation nature. The Committee was not looking at the non profits that currently hold a line item in the budget, but were considering things like the skating rink, the community schools issue, etc. This would provide a separate funding mechanism for some of the lesser non profits, but would not eliminate some of the larger non profits that the City funds via line item such as the Pratt Museum.

VOTE:(primary amendment 2) YES: STARK.

NO: WYTHE, SHADLE, NOVAK, HEIMBUCH, McLAY.

Motion failed.

STARK/SHADLE - MOVED TO AMEND AT THE END OF LINE 50, AFTER ALLOCATED TO A SPECIFIC PURPOSE AND ADD, STATE REVENUE SHARING, COMMUNITY DIVIDEND, OR OTHER SIMILAR FUNDS.

There was some discussion. Revenue sharing and community dividend funds are not considered windfall monies. When funds such as these are provided they are provided for the general fund of the community and are specific allocations. Funds allocated for the purpose of community support items are designated funds and not windfall monies. The Ordinance states, Funds not allocated for a specific purpose. The question was asked if the Council is prohibited from adding monies to the Permanent Fund. The answer is no, there is a provision for the Council to add monies to the Permanent Fund, see line 63 on 3.12.040.

VOTE: (primary amendment 3.) YES: STARK.

NO: McLAY, WYTHE, SHADLE, NOVAK, HEIMBUCH.

Motion failed.

There was no further discussion.

VOTE:(main amended motion) YES: STARK, NOVAK, HEIMBUCH, McLAY, WYTHE, SHADLE.

Motion carried.

B. Ordinance 05-17(A), Of the City Council Amending Homer City Code Chapter 21.68, Concerning Appeals Under the Homer Zoning Code and Enacting Section 21.30.030 to Authorize Setting Zoning Fees by Resolution. (First Reading October 10, 2005 and forwarded to the Planning Commission for Review and Public Hearing, Public Hearing November 14, 2005, Second Reading November 28, 2005 postponed to December 12, 2005 Main Motion as amended is back on the floor as postponed on December 12, 2005, further postponed on January 9, 2006 to January 23, 2006.)

B. 1. Ordinance 05-17(S), Of the City Council Amending Homer City Code Chapter 21.68, Concerning Appeals Under the Homer Zoning Code and Enacting Section 21.30.030 to Authorize Setting Zoning Fees by Resolution. Includes City Attorney Suggestions.

Main motion as amended is back on the floor as postponed on November 28, 2005 for the City Attorney to review the amendments. McLAY/WYTHE - SO MOVED FOR THE ADOPTION OF ORDINANCE 05-17 FOR SECOND AND FINAL READING BY READING OF TITLE ONLY. STARK/SHADLE - MOVED TO AMEND LINE 102 PAGE 123 TO ADD, 4. GRANT OR DENIAL OF A CONDITIONAL FENCE PERMIT. (Per suggestion of the City Attorney in his memo to Council and then renumber rest. 4 to 5 and 5 to 6.) WYTHE/McLAY - MOVED TO AMEND LINES 87 AND 88 TO INCLUDE "APPROVAL OR DENIAL" , INSTEAD OF JUST BEING FOR THE DENIAL THAT IT WOULD INCLUDE THE APPROVAL OF THE PERMIT ALSO (21.68.015 1. and 2. of a zoning permit, of a sign permit.) WYTHE/NOVAK - I WOULD MAKE A SECOND AMENDMENT ON LINES 81 AND LINES 95 TO STRIKE TO STRIKE THE WORD "ONLY". HEIMBUCH/McLAY - LIKE TO OFFER THE FOLLOWING AMENDMENT ON PAGE 125 TO BE INSERTED AT THE LINE 160 ADDING A FOURTH NUMBER TO THOSE PEOPLE DESCRIBED IN 21.68.020 WHO MAY APPEAL, 4. WOULD READ: ANY PERSON WHO OBTAINS THE SIGNATURES OF THREE AGGRIEVED PEOPLE AS DEFINED IN SECTION C. OF 21.68.020 AND ADDING A FIFTH NUMBER, NUMBER 5. ANY PERSON PAYING A FEE OF $750 SUBJECT TO REFUND IF THE APPELLANT IS SUCCESSFUL ON ANY ASPECT OF APPEAL.

WYTHE/NOVAK - MOVED TO AMEND ORDINANCE 05-17(A) TO SUBSTITUTE ORDINANCE 05-17(S).

There was discussion primarily about the public testimony, about standing, and about who may file an appeal. It is understood that renters are included and it is not just property owners. The Ordinance actually loosens up standing. It used to be that an appellee had to be a property owner within 300 feet or some place close to where the zoning decision was made. Now an appellee only has to be a person aggrieved. There is a provision in the Ordinance for people to participate by proxy, so only one signature is required.

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

Motion carried.

There was no further discussion.

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

Motion carried.

C. Ordinance 05-39(S), Of the Homer City Council Amending Homer City Code Title 13 by Adding a New Chapter 13.50 Entitled "Underground Utilities Required". City Manager. City Attorney revisions. Fiscal Note: All City obligations under this ordinance must be budgeted under separate ordinances. (First Reading October 24, 2005, Public Hearing November 14, 2005, Second Reading November 28, 2005 postponed for two months.)

Main Motion as amended and postponed on November 28, 2005 is on the floor:STARK/SHADLE - MOVED FOR THE ADOPTION OF ORDINANCE 05-59 BY READING OF TITLE. STARK/HEIMBUCH - MOVED TO MAKE THE SUBSTITUTION OF ORDINANCE 05-39(S).

Councilmember Wythe, in keeping with previously expressed conflict of interest, was excused from the table.

Administration requests further postponement to February 27, 2006.

HEIMBUCH/NOVAK - MOVED TO POSTPONE TO FEBRUARY 27, 2006.

City Manager clarified his request for postponement.

McLAY/NOVAK - MOVED TO AMEND TO CONDUCT A WORKSESSION WITH HEA AT 5:30 P.M. AND TO CONDUCT ANOTHER PUBLIC HEARING, ALSO ON FEBRUARY 27, 2006.

There was no discussion.

VOTE: (secondary amendment) YES: NON OBJECTION., UNANIMOUS CONSENT,.

Motion carried.

There was no discussion.

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

Motion carried.

Councilmember Wythe returned to the table.

D. Ordinance 05-65(A), Of the Homer City Council Amending Homer City Code Section 17.04.030(a) Improvement Districts--Formation and Assessment. McLay. (First Reading December 12, 2005, Public Hearing January 9, 2006, Second Reading January 23, 2006.)

HEIMBUCH/SHADLE - SO MOVED TO ADOPT ORDINANCE 05-65(A) BY READING OF TITLE ONLY FOR SECOND AND FINAL READING.

There was no discussion.

VOTE: YES: NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

CITY MANAGER'S REPORT

A. City Manager's Report (Updates and follow up: 1. Underground Utilities Ordinance 05-39(S): Manager concern regarding the lack of input from Utility Companies, 2. Appeals Ordinance 05-17(A) and (S): Substitute includes Gordon's comments and suggestions. 3. Animal Shelter: Working on contract for animal control services, existing contract is being extended for three months to facilitate the RFP process. Plan to forward award to Council in March, 4. Town Center Plan: Within the next week or 10 days meeting of all landowners within the Town Center regarding planning and infrastructure development for the remainder of Town Center now that Fred Meyer plans are known. Proposed Ordinance to amend the Central Business District to provide for a special Town Center District to provide more flexibility for developers and City and provide room for negotiation and creativity. 5.Library Advisory Board Memo: Fund Raising Concepts to support operations at the new library. Request for Council input. 6. Library Transition Report requested by Council. Obligation to inform all of the major contributors to the new library that the Council is actively considering a joint use or combined library. Economic Development Administration, the United States Department of Agriculture, the Rasmuson Foundation, the National Endowment for Humanities, the Alaska Legislature, the Kresge Foundation, the Homer Foundation, Wells Fargo Bank, and Petro Marine Services. Consortium Library is not consistent with the grant applications filed. - " The Homer City Council is actively considering the possibility of collaborating with the University of Alaska to provide for a consortium or joint use library in the new building. Do you have any comments or reactions to this possible development?" 7. BLM, 40 acres: When the FY 2006 Operating Budget was adopted in December, the Council added $3,000 to perform survey work on 40 acres of BLM land on Skyline Drive. This parcel was identified in the Fire Department Strategic Plan as a good location to place a new joint use (City and KESA) fire station. The 40 acres is located adjacent to Winn Nature Center Land and a short driveway easement across this land would be required. Opposition to this idea has been voiced for a variety of reasons by the Winn family, the Alaska Center for Coastal Studies, and other local residents. When the Council added this money to the budget, it was made clear that Council wanted this brought back for discussion before spending money or surveying, scheduled for February 13 the meeting. 8. Community Schools: Council provided for $50,000.00 for the Community Schools Program in the 2006 Operating Budget. The question of how the program would be administered remains. An analysis of the advantages and disadvantages of contracting vs. absorbing the program is being prepared. A Community Schools Advisory Group is being formed to look at the options as well. Recommendation scheduled for February 13 or 27 meeting. 9.Main Street: Primary access for the Fred Meyer development. Improvement is needed. From Pioneer into Old Town, is a State road. City is asking DOT/PF to bring this road up to City Urban Road Standards, as done on Bartlett Street. The City would then take over ownership of the road, as previously discussed. There may be a future Resolution focused just on Main Street at an upcoming meeting. 10. Spit Trail: New grant to assist with the completion of the Spit Trail - Nick Dudiak Fishin' Hole to End of the Road Park. 11. Deep Water Dock Expansion: Project moving forward. Governor included over a million dollars in his capital budget. Currently tracking the $2 million dollars that was earmarked in the Federal Transportation Bill. RFP(s) for final engineering and a more complete economic feasibility analysis are forthcoming. 12. Spit Leases: 2006 Operating Budget contains $40,000 to tear down the Manley building and clean up the site for future leasing. This item is here to give the Council an opportunity to comment regarding any concerns or reservations about this course of action; January Employee Anniversaries - John PH 18 years, Randy Rosencrans HPD 17 years, Wes Cannon PH 11 years, Ken Frazier PWD 10 years, Check Thorsrud HPD 7 years, Richard Gibson PWD 6 years, Mark Kruzick HPD 5 years, Wayne Stanley HPD 5 years, Jolee Ellis Lib 4 years, Stacy Luck HPD 4 y ears and Jo Johnson Clerk 2 years; Bill Popp Update Arctic Winter Games Fund Raising event hosted by Senator Stevens; Homer Chamber of Commerce Arctic Winter Games business opportunities; South Peninsula Haven House Letter; Senator Murkowski Heath Street Extension and Federal Priorities; Governor Murkowski appointments to Boards and Commissions - Appointment of Mayor Hornaday to Alaska Juvenile Justice Association Committee. Added HVFD Memo Re: Vehicle Repairs.

City Manager Wrede highlighted the memos from the Library Advisory Board, regarding opportunities to raise money to support operations at the new Library, with the note that the Board has been working hard on this matter and to thank the Council for the clarification regarding Resolution 06-09(S)(A). He suggested coming back with another resolution to rescind Resolution 06-09(S)(A) and to clearly state in a new Resolution Council's intent.

Councilmember Stark noted that the Borough does not have library powers, therefore cannot support the library. He stated that the constitution prohibits the service area concepts.

COMMITTEE REPORT

A. Public Arts Committee. Synopsis of December 12, 2005. (Meeting scheduled for February 9, 2006 at 1 p.m. in City Hall Cowles Council Chambers.)

B. Road Standards Committee ( Meeting February 7, 2006 at 6 p.m. Conference Room.)

PENDING BUSINESS

None scheduled.

NEW BUSINESS

None scheduled.

RESOLUTIONS

Mayor called for a recess at 9:05 p.m. reconvening the meeting at 9:07 p.m.

A. Resolution 06-10, Of the City Council Supporting and Forwarding the Port and Harbor Commission's Recommendations to the Lease Committee. Shadle. Postponed on January 9, 2006.

HEIMBUCH/STARK - MOVED TO ADOPT.

Port/Harbor Director Dean was asked to come to the table. He noted that this Resolution represents a summary of the Port and Harbor Commission's deliberations over several months, public testimony, research, study of the Lease Policy and their recommendations to the Lease Committee.

City Manager Wrede advised that the City Administration has no objection to the Resolution.

Council expressed appreciation for the Commission work and that there is more leasing that needs to be done and there may need to be some improvement to the Lease Policy.

City Manager Wrede suggested that there may be a need for some incentives.

There was more supportive discussion, with the note that this reinforces the Port and Harbor Commission work. Two things of immediate concern that are addressed in the Resolution are that of providing space for fish processing to enhance that industry in the area of the cranes and the overslope development. If the Council needs to work with Administration to help with suggestions to the Lease Committee, that should not change this Resolution.

VOTE: YES: NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

B. Consent Agenda Item F. Resolution 06-13, Of the Homer City Council Encouraging All Land Owners and Stakeholders in the Town Center to Work Cooperatively and Coordinate their Efforts, so that Independent Developments Complement and Support Each Other and Reflect a Broader Overall Town Center Vision, as Conceptually Illustrated in the Town Center Development Plan. Novak. Recommend adoption.

WYTHE/NOVAK - MOVED FOR THE ACCEPTANCE OF RESOLUTION 06-13 BY READING OF TITLE ONLY.

Discussion was concern about approving this Resolution since the Town Center Development Plan has not been adopted into the City planning documents and that the issues have not been settled.

NOVAK/HEIMBUCH - INTRODUCE AN AMENDMENT TO THE RESOLUTION TO DELETETHE LAST PORTION OF THE RESOLUTION STARTING "AS CONCEPTUALLY ILLUSTRATED IN THE TOWN CENTER DEVELOPMENT PLAN", SO THAT THERE IS NOT A DIRECT REFERENCE TO THE DEVELOPMENT PLAN. DELETED FROM TITLE AND THE NOW THEREFORE BE IT RESOLVED CLAUSE.

The main objective of the resolution is a cooperative effort of people working together toward a broader overall goal. There was public comment and written comment in support of this concept.

City Manager Wrede noted that in the Resolution the Council passed that accepted the Town Center Plan the Council instructed certain things to happen, therefore, administration is already working with the property owners who have all been very willing to work cooperatively. He reported that the property owners see the Town Center as a good thing, that it will increase their property values, and that they see a quality development as a good thing. There are good reasons to work together, such as the boulevard that Fred Meyer proposes that partially crosses City land. He stated that he is happy to bring forward an Ordinance for the Council's consideration. He reiterated the City Attorney's comments that if there are going to be proposed changes to the Central Business District the plan would have to be adopted into the Comprehensive Plan.

Discussion ensued. There was concern expressed that the previous Ordinance ignored Fred Meyer.

VOTE: (primary amendment) YES: STARK, NOVAK, HEIMBUCH, McLAY, WYTHE, SHADLE.

Motion carried.

There was no further discussion.

VOTE: (main amended motion) YES: NOVAK, HEIMBUCH, McLAY, WYTHE, SHADLE, STARK.

Motion carried.

COMMENTS OF THE AUDIENCE

Comments of the Audience on any matter.

Frank Griswold, City resident, stated that he heard earlier on, or maybe just read it, that the Town Square Resolution or whatever, provides for parking to be in the pocket parks and on the streets and that it also calls for building height to be raised. He suggested that most of the citizens do not realize that when this was going on that it would be more than a conceptual plan. He suggested that, it is odd to him, it was not until the ninth inning that this was sprung on the public that it is going to be part of the Comprehensive Plan. He told the Council to not fool themselves, that once they put it into the Comprehensive Plan that says that parking can be put in pocket parks and on the street, then someone is going to say that this shows that it is consistent with the plan and it is going to be the only item on the Ordinance that puts it through. He commented that there have been zoning Ordinances about parking for all these years and everyone has abided by it and now, all of a sudden, it is going to be just gutted because of this thing. He stated that he thinks it a bait and switch. He urged the Council to be very careful about what they put into the Comprehensive Plan. On Ordinance 05-17(S), he said that the City Manager told the Council that this new one is loosening the standing requirements and asserted that the Manager's statement is a joke. He told the Council that this is a total twist of the reading of the Code. The previous Code did not say that only persons within 300 feet had standing, it said those within 300 feet irrefutably had standing, implying that others had standing as well. Now, stated Mr. Griswold, those within 300 feet do not irrefutably have standing they have to actively participate in a meeting and then have to prove it. He commented that the way this Code is written, interjecting that he was not allowed to get to this earlier, it looks like the person who determines the validity of that proof is now the City Clerk and the City Clerk's decision cannot even be appealed. He continued, that it has to be the City Manager or Planning Director, and there is no Planning Director, or Planning Staff, so this is going to create some problems, because all the Clerk has to.., interrupting himself he interjected his opinion that the Clerk has an inherent conflict of interest in that she has to prepare the record and will simply say thank you for your $750.00 and I looked at the proof and I don't think it is sufficient and now you're going to have to pay another $750.00 to take it up. He told the Council that he thinks they could have fixed that by saying that a statement of proof has to be presented, not proof, and that the body that determines if the proof is sufficient should be the Planning Commission or the Board of Adjustment. He stated that there is also a conflict because Council took out the terminology that says, that there was, that they deleted the statement that says Planning Commission and Board of Adjustment members shall be impartial in all appeal matters both in fact and in appearance. He noted that this was very important to put in there in 1999 and he wonders what has changed that now we don't want the Board of Adjustment Members to be impartial. He was out of time.

Ken Castner, City resident, thanked Councilmember Wythe for faithfully bringing the Committee's ⁽¹⁾work to the Council. He noted that she was in minority opinion on several instances, but brought the Committee's work to the Council, adding that he appreciates this very much. He spoke about the Library and that he just figured that what ever the Council did about just waiving their arms really does not change the record. He commented that the Mayor said, two weeks ago, that no reasonable person could object to this arrangement ⁽²⁾. He focused on the arrangement, telling the Council that it is in three parts:

Part 1 - the college gives the City a half time position - $28,600.00 That position is paid for by the Kenai Peninsula Borough, comes from the taxes collected from all the tax payers in the Borough. This is what an economist calls a right pocket, left pocket transaction. No additional value is gained by changing pockets over and over.

Part 2 - allocation of space. The space allocation is 1500 square feet of stacks. 500 square feet would be the area shared. Unknown what shared means, guess that means priority use given to the college. People who are supporters of the Library think that this has a big impact on the Library. He displayed a drawing of the new Library with the stack area clearly defined.

Part 3 - looks like a piece of boiler plate, indemnification clause based on performance. He suggested that the City needs to check with its insurance agent because the college has no performance and the City had total performance and the liability is transferred to the City.

Mr. Castner advised the Council that he attended the College meeting last week and that they do covet a building that the City has, City Hall. He suggested when the Council does its professional analysis of economic benefit that they include giving the building or having a consortium building here at City Hall, next door to the college, in that analysis. He voiced his opinion that the Council would be a little slower to sign over City assets when it is their cat that has its tail stuck in the door. He thanked the Council.

Mayor Hornaday inquired of Mr. Castner if he is representing the Friends of the Library, or himself or ?????

Mr. Castner advised that he is Ken Castner, that he lives here and is representing himself.

Brooks Guetchow, Resident for 29 years, commented that Homer is inevitably moving toward its future, however, influencing that outcome are many malleable methods. Implied by a plethora of improvement projects appropriated in the supposed socialistic representative system. We, the people, would like to represent ourselves as progressive and deductive. He voiced his belief that at the corner of the Sterling Highway and Fish Dock Road the last cross road at the end of the US Highway System has an important metaphorical reflection of its situation both relative to the sports, caught and commercial industries and subliminal criticism by the semi random observer. He stated that frankly the aesthetics and utopic practicality of the said property are not up to par nor code. There exists a contamination issue inaccessible without removing an obtrusively condemned structure. Alaska needs to work on improving quality of product so profoundly that demand value and net consumed product percentage aggressively ascends ensuring bounty sustainability. Compare the value of income leasing as opposed to an innovative quality orientation processing complex with third story units. Appropriations are difficult for representatives especially due to budget, barrel, hand cut criticism, but there are many sources of feasible funding including but not limited to Port and Harbor surplus, Alaska State via ASME, individual and/or company capital ventures. This business of monster loads off loading to an out of state mass marketing processor, mass murdering the reputation of Alaska as free ocean as ideally delicacies is detrimental to the relevantly debated decisions of numerous interested groups. We are incurring drastically less profit than possible, for example the lack of local work force demand, the lack of entitled royalties, the lack of mean market control due to quality supply and demand and also the shipping costs of including the unprocessing carcasses. Finally, the value difference between the prior and an over night fresh vacuum packed product anywhere to the world. He recommended to the community to avoid any further procrastination on this issue, the subconscious inkling becoming a categorical directional decision is 90%, but an inert idea taking its first physical step approaches and accomplishment probability of 99%. A library, the university expansion, the Islands and Ocean Center, an ice facility, a punctual stop light. If one were to critically brainstorm on Spit improvement projects, then which will we be remembered by and by which will we be applauded. Will we applaud great social Samaritan effort. He wished all a good night.

COMMENTS OF THE CITY ATTORNEY

City Attorney Tans was not present.

COMMENTS OF THE CITY CLERK

City Clerk Calhoun

COMMENTS OF THE CITY MANAGER

City Manager Wrede

COMMENTS OF THE MAYOR

Mayor Hornaday wished the Juneau delegation good luck, Val McLay, Doug Stark and Matt Shadle.

COMMENTS OF THE CITY COUNCIL

Councilmembers McLay, Heimbuch, Stark and Novak had no comment.

Councilmember Shadle stated that everyone here probably has one or knows of someone who has an ex.

Councilmember Wythe thanked all those who sat on the Permanent Fund Committee with her, and noted that this was one of the most expeditious completions of a project that she has seen in a while, in Homer, interjecting that it is pretty amazing and that there was a lot of good input. She expressed her gratitude and thanks to the Council for adopting the Permanent Fund Ordinance. She also thanked the LAB for their work in developing the funding concepts, that they did a really nice job and that she looks forward to seeing some of these coming to fruition.

ADJOURNMENT

There being no further business to come before the Council the meeting was adjourned at 9:35 p.m. by Mayor James C. Hornaday. The next Regular Meeting is scheduled for Monday, February 13, 2006 at 7 p.m. and the next Committee of the Whole is scheduled for Monday, February 13, 2006 at 4 p.m. Joint worksession with the Planning Commission is scheduled for Monday, February 6, 2006 at 6 p.m. Joint worksession with Advisory Bodies regarding the Land Allocation Plan is scheduled for Monday, February 27, 2006 during the Committee of the Whole, 4 p.m. and a Worksession with HEA on Monday, February 27, 2006 at 5:30 p.m. regarding Ordinance 06-39(S), Underground Utilities. All meetings scheduled to be held in the Homer City Hall Cowles Council Chambers located at 491 E. Pioneer Avenue, Homer, Alaska.

______________________________________

MARY L. CALHOUN, CMC, CITY CLERK

Approved: ______________________________

1. Reference to Permanent Fund Committee.

2. Reference to the Consortium Library - Joint Public Library and College Library.