Session 00-02, a Regular Meeting of the Homer City Council was called to order at 7:32 p.m. by Mayor Jack Cushing at the Homer City Hall Council Chambers located at 491 E. Pioneer Avenue, Homer, Alaska and opened with the Pledge of Allegiance.

PRESENT: COUNCILMEMBERS: CUE, FENSKE, KRANICH, YOURKOWSKI .

STAFF: CITY MANAGER DRATHMAN

CITY CLERK CALHOUN

FINANCE DIRECTOR BAUGH

PLANNING DIRECTOR BECHTOL

PUBLIC WORKS DIRECTOR MEYER ACCOUNTING SUPERVISOR MACK

POLICE OFFICER I SHEALY

ABSENT: COUNCILMEMBER: MARQUARDT, WELLES (excused)

AGENDA APPROVAL

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

The agenda was approved by consensus of the Council with the following changes noted: ADDITIONS: Add to Announcements/Presentations/Reports as Item B. Councilmember Fenske Travel Report and as Item C. Councilmember Cue Travel Report. Add to the Consent Agenda as Item G. Memorandum 00-05 from City Manager, Re: Lease Negotiating Committee and Item H. Memorandum 00-06 from City Manager, Re: Lease Assignment. INFORMATIONAL: Public Comments received from Chris Moss on Resolution 00-15. Correction - Typo correction to Resolution 00-15. CIRCAC and RCAC information to add to Item A. under Announcements/Presentations/Reports.

Councilmember Yourkowski asked that Resolution 00-15 be pulled from the agenda. There were no objections.

PUBLIC COMMENTS UPON MATTERS ALREADY ON THE AGENDA

Alan Parks and daughter Ella thanked the Council for all their hard work and for pulling Resolution 00-15.

City Manager Drathman was recognized with a "Point of Information" regarding a technical error in Memorandum 00-05, that it should be the Planning Director and not the Public Works Director on the Lease Negotiating Committee.

There were no objections to the technical correction.

RECONSIDERATION

CONSENT AGENDA

(Items listed below will be enacted by one motion. If separate discussion is desired on an item, that item may be removed from the Consent Agenda and placed on the Regular Meeting Agenda at the request of a Councilmember.)

A. Homer City Council regular meeting unapproved minutes of January 10, 2000. Recommend approval.

B. Resolution 00-14, OF the City Council of Homer, Alaska amending the Fee schedule to Exclude Real Property Lease Payments by Credit Card and to Eliminate the Cap on Credit Card Payments. City Manager. Recommend adoption.

Memorandum as backup from Port Director/Harbormaster.

C. Memorandum 00-02, from Mayor, Re: Travel Authorization to Juneau for Alaska Conference of Mayors. Recommend approval.

D. Memorandum 00-03, from City Clerk, Re: Liquor License Renewal for the Homer Brewing Company. Recommend approval.

E. Resolution 00-15, Of the City Council of the City of Homer, Alaska Opposing any Action that may Adversely Impact the Viability of the Homer Charter Boat Fleet. Yourkowski. Recommend adoption.

F. Memorandum 00-04, from Mayor Cushing, Re: Appointment of Matt Beaumont-Gay to the Library Advisory Board as the Honorary Student Member. Recommend confirmation.

G. Added under Agenda Approval: Memorandum 00-05, from City Manager, Re: Lease Negotiating Committee. Recommend confirmation.

H. Added under Agenda Approval: Memorandum 00-06, Re: Lease Assignment. Recommend approval.

YOURKOWSKI/CUE - MOVED FOR THE APPROVAL OF THE RECOMMENDATIONS OF THE CONSENT AGENDA.

VOTE: YES: FENSKE, YOURKOWSKI, KRANICH, CUE.

Motion carried.

VISITORS

ANNOUNCEMENTS/PRESENTATIONS/BOROUGH REPORT/COMMISSION REPORTS

A. RCAC report by Paul McCollum Added late, no page number.

1. CIRCAC and RCAC information added.

B. Added under Agenda Approval: Travel Report from Councilmember Fenske

C. Added under Agenda Approval: Travel Report from Councilmember Fenske

Mayor Cushing brought the Council up to speed regarding the Prince William Sound RCAC draft report, "Citizens' Group Calls on Oil Industry to Drop Efforts to Overturn Oil-Spill Protection Requirements". He asked the Council to let him know if there was any interest in weighing in on this matter, that the deadlines for input usually happen fast. The shippers have to decide if they are going to contest and Prince William Sound RCAC is hoping that they will withdraw the appeal prior going into any lengthy litigation processes. He asked if the Council wanted him to write a letter.

Mayor Cushing reported on his incoming correspondence. Chris Moss resigned his position on the CIAA, the Mayor will bring forward an appointment at the next Council meeting for Council confirmation. He advised that the Consortium of Care is asking for an Elected Official to participate in their meetings full time. He further advised that he attended a meeting and Chief Robl typically attends. Their next meeting is February 11th.

PUBLIC HEARINGS.

ORDINANCE(S)

CITY MANAGER' S REPORT

A. City Manager's Report.(Ice/Crane time, Treasurer's Report, Land Allocation Worksession canceled, EDC's request to be rendered inactive.)

B. Game Permit Report, from City Clerk

Finance Director Baugh submitted a monthly financial report and City Manager Drathman elucidated the proposed process for this reporting.

The Mayor and Council discussed the EDC's request to be inactive until such time as staff support can be provided. It was noted that the Commission currently has staff support for meetings and such, but they are asking for a full time person. Council discussed the aspects of this Commission's duties and that they need clear direction regarding their purpose and duties. Some disappointment regarding the inactive request was expressed. The Council stated that this commission is a vital and important part of the City structure with particular reference to the business community input. All Commissions are advisory to the Council and the Council must weigh recommendations in the light of the overall picture and good for the City. At budget time many cuts were made, it was not feasible to fund a new position and funding was provided for the EDC to work with the Chamber of Commerce. It was suggested that the EDC and other Commissions be formally tasked with specific projects and issues.

Councilmember Yourkowski pointed out that he had requested input on the visitor's assessment fee proposal and that part of that fee would be funding for EDC staff and no input had been provided. He asked for Council input on this fee.

COMMITTEE REPORT

PENDING BUSINESS

A. Memorandum 99-217, from Parks & Recreation Commission, Re: Bishop's Beach Park Master Plan.

Recommendation: City Council adopt the Bishop's Beach Park Master Plan

CUE/FENSKE - MOVED TO ADOPT THE RECOMMENDATION OF MEMORANDUM 99-217.

Councilmember Cue stated the basic premise of this plan is to enhance the community's enjoyment of this precious jewel called Bishop's Beach. The park should not be considered separate from the beach or the tidal areas, because it is all interconnected. She encouraged the Parks & Recreation Commission to begin the process of establishing standards of care of this green space and other green and open areas throughout the City. She stated that she will at some future meeting propose an amendment to the master plan that supports the development of standards of care for Bishop's Beach.

There was further discussion regarding the plan, that it is a basic and living plan. It was also noted that the Commission would like a more professional drawing of the design. The Commission was commended for their progress and work.

VOTE: YES: CUE, KRANICH, FENSKE, YOURKOWSKI.

Motion carried.

NEW BUSINESS

RESOLUTIONS

COMMENTS OF THE AUDIENCE.

Steve Gibson commented on listening to the last Council meeting while he was working, wherein the Terminal Use Permit was being discussed. He agreed that it is a good idea for the Port/Harbor Commission to revisit the Terminal Use Permit. He asked for permission to obtain a clarification on the following matters:

If his employer, North Star Terminal & Stevedoring Co., hires him to move materials from the staging area, not the dock, they have to add ten percent to anything he loads up to move out of that area. He noted that sometimes other shippers will come in and sometimes it is a long shore job, but usually it is not. He wondered if something has gone down in this TUP changed and that makes it so that his employer pays a penalty of ten percent (10%) every time they are used in that process. This would have to be reflected in the North Star bid thereby making them non competitive in that type of market.

If there is material that comes into the dock and is moved to any other place, North Star would have to pay ten percent 10%) for the privilege of using him.

If North Star is hired to move something off the staging area they are charged 10%. However, Linden or someone else can go there and as long as they hire someone not working for North Star it is ten percent (10%) cheaper.

City Manager Drathman responded that the 10% charge has been in the TUP since 1989. North Star came to the City with the suggestion to provide this service and give the City 10% of the charge. He clarified that North Star is using the facility and storing equipment there at no rental space fee.

He advised that the City has suggested that North Star rent space.

Mr. Gibson stated that it seems there is an inequity and an issue not addressed.

Otto Kilcher asked if long shoring stops at the edge of the dock or at the edge of the Spit? What would happen if North Star came into town and decided to move some freight? Which is similar to what Steve Gibson is asking. Mr. Kilcher inquired what has happened with the gas pipe line coming to Homer from Epperson Knob?

Mayor Cushing advised that the statement is when oil is around $40 a barrel, then gas can compete and that is when the gas pipeline will happen. There has been efforts and figuring done to get the natural gas out of the North Slope, it just does not pencil out as cost effective at this time, without some sort of subsidy. Even with existing mines and rail lines they cannot compete with oil.

Don Lane, President of North Pacific Fisheries Association (NPFA) a Homer based Commercial Fishing Group, applauded Councilmember Yourkowski's efforts on trying to find a position for the City in relation to the North Pacific Fisheries Management Council (NPFMC). He stated that Councilmember Yourkowski spent a good part of the day exploring the issues that are being addressed and how these fit in with Homer. He apologized for not making more of an effort to be in contact with the City, because the issues that the NPFMC are addressing are the guided Halibut Charter Industry issue and the guideline harvest level. These issues are important to this community, to the commercial fisherman, the sports fisherman and the guided charter industry. This NPFMC meeting is starting the seventh of February, there will be a lot of issues important to Homer and the NPFA will be back to talk to Council about these after that meeting. This will not be the end of the issues, hopefully the beginning of some new ways to think about the resource and the coastal community. He thanked the Council for removing the Resolution from the agenda.

COMMENTS OF THE CITY ATTORNEY

City Manager Drathman reported for City Attorney Tans that the City won in summary judgement in the Griswold vs. Main Street Case.

COMMENTS OF THE CITY CLERK

City Clerk Calhoun voiced her appreciation of the length of the meeting.

COMMENTS OF THE CITY MANAGER

City Manager Drathman had no comment.

COMMENTS OF THE MAYOR

Mayor Cushing reported on his upcoming trip to Juneau on the Council's behalf for the Joint AML and Conference of Mayor's Session and asked for input. He will be taking a number of standing resolutions with him. He will be visiting with the US Coast Guard about Homer's dock issue, being a two boat town and a lot of USCG rescues are done out of Homer. He will be visiting with Homer's representatives. He advised that he has discussed the Alaska Housing Finance Corporation issue on structuring loans rural and non rural with the representatives. He will be discussing this matter further with them and the ramifications thereof as well as what the rest of the legislature as going to propose to that whole program. The Mayor's Conference will be discussing municipal sharing, safe communities and that funding and trying to maintain that funding at least at status quo. So that the budget cuts do not have to be dealt with. The Mayors have been saying that it is a method of passing taxes to the municipalities instead of the state instituting and answering the budget questions and coming up with solutions. It is a unanimous feeling among the Mayors that this just forces the Cities, the Assemblies and Councils, and the Municipal Governments to figure out how to make the ends meet. It is not the mantra of the existing legislature, no new taxes. It is the more they cut the more new taxes they are forcing at the municipal level. He encouraged the public to listen to Gavel to Gavel. Each Mayor gets a couple of minutes to speak.

COMMENTS OF THE CITY COUNCIL

Councilmembers Kranich and Cue had no comments.

Councilmember Yourkowksi thanked Don Lane for coming to the meeting and for meeting with him earlier in the day. He advised that the intent of Resolution 00-15 was for the economic interest of Homer and not to select any group to benefit more than another. He stated that he is very concerned about the NPFMC proposal to limit Charter Cod fish to one per person, a ridiculous option. He emphasized that there are bills in front of the legislature regarding the initiative and referendum process. Senator Torgerson is on a committee reviewing this matter.

Councilmember Fenske reported on the LNG Pipeline Terminus meeting he attended last week. There was discussion about a pipeline from Prudoe to salt water. He interjected that it seems that there would be enough ready customers to make a gas line from Epperson Knob feasible within a reasonable length of time. There are three routes being looked at for delivering natural gas. The theory is that fourteen million tons need to be sold a year to make this business viable, but they will probably start off with delivering seven million tons a year and address the transportation and facilities needs from that point. He stated that he would sure like to see some natural gas get down to Homer. Alternate sources of energy are needed.

Councilmember Yourkowski asked for input on the visitor assessment proposal to be forwarded to him in the next three or four days so that he can incorporate this into the resolution he plans to place on the next agenda.

ADJOURNMENT

There being no further business to come before the Council the meeting was adjourned at 8:35 p.m. The next regular meeting is scheduled for Monday, February 14, 2000 at 7:30 p.m. in the Homer City Hall Council Chambers.

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MARY L. CALHOUN, CMC/AAE, CITY CLERK