Session 10-04 a Special Meeting of the Homer City Council was called to order on January 25, 2010 at 4:02 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: HOGAN, HOWARD, LEWIS, ROBERTS, WYTHE, ZAK
STAFF: CITY MANAGER WREDE
CITY CLERK JOHNSON
CITY PLANNER ABBOUD
PORT & HARBOR DIRECTOR HAWKINS
Department Heads may be called upon from time to time to participate via teleconference.
AGENDA APPROVAL (Only those matters on the noticed agenda may be considered, pursuant to City Council’s Operating Manual, pg. 5)
The agenda was approved by consensus of the Council.
PUBLIC COMMENTS
UPON MATTERS ALREADY ON THE AGENDA
There were no public comments.
A. Legislative Grant Reappropriation
City Manager Wrede reported on the $2M Legislative Grant issued in FY 2007 (passed by Legislature in 2006) for construction of a new City Hall. To date, $542,241.80 was spent on design of the building, with a remainder of $1,457,758.20 in grant funds. The project was specific to cover costs of design and construction for a new City Hall built in Homer’s Town Center. The project is to be done no later than June 30, 2011. Article 11 speaks of modifications and amendments to the grant agreement. To transfer funds for another project will likely require reappropriation. Article 18 addresses termination by mutual agreement. In this case the voters did not approve borrowing $6M to finish the project. Council could terminate the project and return the funds.
Discussion ensued on reappropriating the funds for improvements to the current City Hall or the possibility of renovating the West Campus. Options to expand the current City Hall were offered now that the parking requirements have been satisfied. Those included a small addition to the building for additional office space, utilizing the Council Chambers for offices, and holding city meetings at a different location. As the Chambers are used many nights of the week for an array of commission and committee meetings, a permanent location would be needed. The possibility of splitting City Hall with the old intermediate school building is an option. Sound system upgrades to Council Chambers are being made now, with broadcasting capabilities from the current location.
It was suggested the current City Hall could be sold to the college and the West Campus building brought up to code for $300,000. The West Campus building has less square footage than the current City Hall. Mayor Hornaday commented there was a standing invitation to people to go over the West Campus building report again. He would be happy to appoint a committee. Bruce Turkington had earlier made indication he did not want anything to do with it. The old school has a designated purpose now; if changed, the requirements for refurbishing would make it much more expensive. There are asbestos issues that will arise when walls are opened. Relief of Fire Marshall authority was a suggestion, but would not eliminate federal regulations. ADA compliance becomes a major expense.
Mayor Hornaday is meeting with Legislators next week and will provide a laundry list for use of the grant funds. Suggestions included: a parking lot on the northwest corner of Town Center, off Pioneer Avenue that could be useful space for RV’s; the current City Hall; and refurbishing the old intermediate school. Legislators may also have ideas on reappropriation of the funds.
Council unanimously agreed to not give the money back.
WYTHE/HOWARD - MOVED THAT WE REQUEST REAPPROPRIATION OF THE FUNDS FOR CONSIDERATION OF A REMODEL OF THE EXISTING FACILITY THAT WOULD ALLOW US TO EXPAND ITS USEFUL LIFE.
It was suggested more time be put into the decision and that an extension of time to utilize the grant be requested. The Legislative session is currently underway. City Manager Wrede is to lobby in Juneau the last thirty days of the session. It would be too late to include the grant reappropriation at that time, as business will have already moved through the committees.
VOTE: YES. ROBERTS, WYTHE, LEWIS
VOTE: NO. ZAK, HOWARD, HOGAN
Mayor Hornaday broke the tie vote with a YES.
Motion carried.
WYTHE/HOGAN - MOVED THAT IN ADDITION TO ASKING FOR REAPPROPRIATION WE WILL ASK FOR AN EXTENDED TIME LINE FOR THE FUNDS IF THEY ARE REAPPROPRIATED AND THAT WE WOULD INCLUDE A LIST OF ADDITIONAL ITEMS TO BE CONSIDERED IF THE APPROPRIATION FOR THIS FACILITY (CITY HALL) WAS NOT A POSSIBILITY.
There was no additional discussion.
VOTE: YES. NON OBJECTION, UNANIMOUS CONSENT.
Motion carried.
B. Long Range Fiscal Plan
Council discussed the Long Range Fiscal Plan that was finalized in 2004. It would be beneficial for Council to review and update the plan again. Changes in the last six years include the loss of the Gates facility on the Spit, resulting in a several hundred thousand dollar reduction in city revenues. Per the plan, a 1% increase in sales tax was effected and fees were raised. The financial projects are on track.
Representative Seaton has tried to fix a fishery export tax, but it has not gone anywhere in the Legislature as most other ports are opposed. Cities where fish are processed share in the taxes: State 50%, Borough 25%, and city 25%. The argument is over the definition of processing. Here, halibut are trucked out of town so no tax is received. Representative Seaton has been trying to change the law to say the location where fish are landed would be subject to the fishery export tax. There has been opposition from other communities. Homer does not have a local landing tax; that would require voter approval.
Unalaska is the primary recipient of the fishery export tax. Efforts to instigate the export tax began when Drew Scalzi was the representative. The bill has been compromised to allow everyone a cut. It was suggested the City lobby strongly for the fish export tax.
The Borough will be sharing over $2,000 for cruise ship landings. The landing tax came out of the Long Range Fiscal Plan in efforts to balance the Port and Harbor budget. City Manager Wrede commented prior Harbormaster Steve Dean and himself went before the Port and Harbor Commission to talk to them about a fishery landing tax. He was skinned alive and received subsequent emails from fishermen in Canada threatening to eliminate fish deliveries to Homer.
Sitka went to one fish limit. The same may happen here within the next year or so. It may help to get sales tax revenue figures from Sitka. A limited entry for charters is already in effect. Council noted the need to remain neutral on allocation disputes between the commercial and charter fishing industries.
The film industry is an economic development means for the City. A resolution will be brought before Council at the next meeting to approve membership with the Alaska Film Group.
Advocating for natural gas to Homer was suggested as a means of creating jobs.
COMMENTS OF THE
AUDIENCE
Leonard Wells, city resident, asked Council to consider turning back the grant money. It was for a specific purpose and Council should not be using smokin’ mirrors to get money for other purposes. The grant money expenditures for the study should be paid back.
Robert Archibald, city resident, commented on the 215 skiing contestants at the Tesh Cup this weekend. He offered kudos to the Nordic Ski Club for putting the event on. Winter recreation is a big draw for economic development. He has been trying to contact people to look at the old intermediate school building. It is the same old problem, getting everybody together to do so. Former Mayor Bruce Turkington has shown some interest.
COMMENTS OF THE
City Attorney Klinkner was not present.
COMMENTS OF THE
City Clerk Johnson had no comment.
COMMENTS OF THE
City Manager Wrede had no comment.
COMMENTS OF THE
MAYOR
Mayor Hornaday had no comment.
COMMENTS OF THE
Councilmember Zak commented that the landfill will soon close and trash will be trucked up to the next Borough landfill. He suggested coming up with another solution that would promote economic development.
Councilmember Hogan identified with the City Manager’s comments about the reaction he received from the mention of a fish tax. When someone from the Chamber wrote a letter against the commercial industry there was an immediate and substantial reduction in landings. We have to be careful about what we talk about, because it is a very precarious foothold in the marketplace and can go away as fast as it came.
ADJOURNMENT
There being no further business to come before the Council the meeting was adjourned at 4:58 p.m. by Mayor Hornaday. The next Regular Meeting is scheduled for Monday, February 8, 2010 at 6:00 p.m. The Next Committee of the Whole is scheduled for Monday, February 8, 2010 at 5:00 p.m. A Special Meeting is scheduled for Monday, February 8, 2010 at 4:00 p.m. A Worksession is scheduled for Thursday, February 11, 2010 at 4:00 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: ______________________