Session 06-17, a Regular Meeting of the Homer City Council was called to order at 7 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: McLAY, NOVAK, SHADLE, STARK, WYTHE.

STAFF: CITY CLERK CALHOUN

CITY MANAGER WREDE

ACCOUNTING TECHNICIAN II/PAYROLL EARLS

LIBRARY DIRECTOR HILL

PUBLIC WORKS DIRECTOR MEYER

ABSENT: COUNCILMEMBER: HEIMBUCH (excused)

Department Heads may be called upon from time to time to participate telephonically.

The City Council met as a Committee of the Whole from 4 to 5:24 p.m. Agenda items: Kate Giard, Chair of the State of Alaska Regulatory Commission addressing the Council regarding Potential for Natural Gas Pipeline to Homer, Council discussed Budget Priorities for 2007 and Regular Meeting Agenda Items.

The City Council conducted a Worksession from 5:31 to 6:15 p.m. Agenda item Resolution 06-81, Of the City Council Revising Certain Portions of the Homer Public Library Policy Manual.

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 changes: Corrected Ordinance 06-42, Substitute Resolution 06-90(S) with Memorandum 06-118(S), Request to Delete Resolution 06-91 and Memo 06-119 from this Agenda in entirety, Substitute Resolution 06-94(S),and written testimony on assessment districts and addition to the City Manager's Report.

PUBLIC COMMENTS UPON MATTERS ALREADY ON THE AGENDA

Public may comment on any matter on the agenda except Visitor the Chamber of Commerce Report and Public Hearing Items Final Water and Sewer Assessment Rolls - Ordinance 06-39(S)(2),Community Schools Program and associated ballot issue, and 2007 Budget Priorities.

Fred Lau, Director for Homer Senior Citizens, stated that he really did not have any comments other than to let the Council know that he is present regarding the Resolution 06-94 regarding property tax exemption for Homer Seniors. He stated that he would be happy to answer any questions of the Council. There were no questions.

Lindsay Winkler, City resident, greeted the Mayor and Council and advised them that she is a trail advocate, designer and builder within the City of Homer and that she works for the Coalition for Homer Open Space, Alaska Trails, Homer Soil and Water Conservation District, Seabright Surveying and her own business, largely to encourage sustainable and legal trails in the area for all Alaskans. She applauded the Mayor and Council efforts with Ordinance 06-42, encouraging them to place this on the ballot this fall. The HARP is a good fit for Homer as it continues to grow, amending it to include non motorized transportation is also key. As a growing community, Homer needs to state clearly that motorized transportation is not the only option out there and that Homer will actively provide non motorized transportations as well. She stated that she especially likes the clause that if passed the City Council will provide qualifying criteria and conditions under which new trail construction projects could be funded using HARP Revenue, if voters approve the measure. It is important for several reasons, most apparent is the need for increased non motorized transportation routes. Certainly it is a higher priority, in her opinion, to provide sidewalks on Main Street, then it is to provide purely recreational access routes. In an ideal world, there would be more trails than any person's foot could tread upon. With limited funds and obvious desire to use public funds for the best and most benefit, the focus needs to be on connecting major transportation corridors of non motorized access. Ordinance 06-42 and the Council have the power to this by placing this measure on the ballot this fall. She applauded the City Council for their recent efforts to enhance roads with pedestrian and bike pathways, a great move. There are many private developers including trails in their projects. Amending the HARP to included trails, as an option, is another great step for this program. The people in the community have stated that they want trails in their cities, allow them to vote.

RECONSIDERATION

A. Memorandum 06-114, from City Clerk, Re: Councilmember Shadle's Reconsideration of Resolution 06-81. If reconsideration is approved the Resolution will be back before the Council under Resolutions.

Recommendation: Approve reconsideration.

SHADLE/McLAY - LIKE TO APPROVE THE RECOMMENDATION TO THE MEMORANDUM.

Councilmember Shadle noted that much was learned during the worksession with regard to the revisions to the Library Policy.

VOTE: YES: NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

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 Novak asked for Ordinance 06-29 to be placed on the August 14, 2006 Regular Meeting Agenda and Councilmember Wythe asked for Memorandum 06-130 to be placed under New Business as Item C.

A. Homer City Council unapproved meeting minutes of June 26, 2006 Regular Meeting. City Clerk. Recommend approval.

B. Ordinance 06-29, Of the City Council of Homer, Alaska Amending City Code Requiring Sewer Connection Before Receiving City Water. Novak. Recommend Introduction, Conduct Public Hearing August 14, 2006, Second Reading August 28, 2006.

August 14, 2006 Regular Meeting Agenda

C. Ordinance 06-41, Of the City Council of Homer, Alaska Authorizing the City to Enter into a Loan Agreement with the Alaska Department of Environmental Conservation (ADEC) through the Drinking Water Revolving Loan Fund Program to Finance the Ocean Drive Lop Sewer and Kachemak Drive Phase I Water and Sewer Projects and the Design of Kachemak Drive Phase II Water and Sewer Project in the amount of $3,720,000.00. City Manager. Fiscal Note: $3,720,000 Loan, 20 years, plus interest. Recommend introduction for first reading, Set Public Hearing and Second Reading for August 14, 2006.

Memorandum 06-124, from Public Works as backup.

D. Corrected Ordinance 06-42, Of the City Council of Homer, Alaska Submitting a Set of Ballot Questions to the Voters at the Regular Municipal Election on October 3, 2006, Regarding the Homer Accelerated Roads Program (HARP), Including Continuation of the Program and Reauthorizing the Three Fourths Percent (3/4%) Sales Tax Levy for up to Twenty Additional Years, Amending HARP to Authorize Construction of New Roads and New Trails, and Amending Homer City Code Subsection 9.16.010(c) Accordingly. City Manager, at the request of Mayor and Council. Fiscal Note: Revenue estimated at $1 Million per year. Recommend introduction for first reading, Set Public Hearing and Second Reading for August 14, 2006.

E. Ordinance 06-43, Of the City Council of Homer, Alaska Accepting Ocean Drive Loop Erosion Control Project Settlement Funds in the amount of $540,000, and Appropriating Those Funds to the Special Projects Fund. City Manager. Fiscal Note: Settlement Revenue $540,000 and to Special Projects Fund; Account Number 158-375-4906.Recommend introduction for first reading, Set Public Hearing and Second Reading for August 14, 2006.

F. Ordinance 06-44, Of the City Council of Homer, Alaska Accepting and Appropriating an Impaired Driving and Occupant Protection Program Reimbursable Grant in the Amount of $10,314.24 and Authorizing the City Manager or His Designee to Execute the Appropriate Documents. City Manager. Fiscal Note Revenue and Expenditure Accounts 151-780 DUI Enforcement and 151-781 Seat Belt. Recommend introduction for first reading, Set Public Hearing and Second Reading for August 14, 2006.

G. Resolution 06-80, Of the Homer City Council Expressing Its Interest in Establishing a Canine Program within the City of Homer Police Department. City Manager. Recommend adoption.

H. Resolution 06-88, Of the City Council of Homer, Alaska Adopting the 2006 City of Homer Pandemic Flu Emergency Response Plan as an Addendum to the City's, Overall, Emergency Response Plan. City Manager. Fire Chief. Recommend adoption.

Memorandum 06-131, from Fire Chief as backup.

I. Resolution 06-89, Of the City Council Authorizing the Designation and Addition of a T-Ball Field to Karen Hornaday Park Master Plan. City Manager. Parks and Rec. Recommend adoption.

Memorandum 06-117, through Parks and Recreation Commission.

J. Substitute Approved under Agenda Approval: Resolution 06-90(S), Of the City Council of Homer, Alaska Awarding the Contract for the 2006 Street Repaving Project to the Firm of QAP OF Anchorage, Alaska in the Amount of $492,400.00 and Authorizing the City Manager to Execute the Appropriate Documents. City Clerk. Fiscal Note: Account Number: 160.768. Council appropriated $600,00.00 Ordinance 04-16(A). Recommend adoption.

Memorandum 06-118(S), from Public Works as backup.

K. If approved, deleted under Agenda Approval. Resolution 06-91, Of the City Council of Homer, Alaska Awarding the Contract for the Kachemak Drive Phase I Water and Sewer Project to the Firm of ____________ of _________, ___________ in the Amount of ____________and Authorizing the City Manager to Execute the Appropriate Documents. City Clerk. Recommend adoption. Bid Opening is July 20, 2006. Substitute Reso to be submitted after Bid Opening.

Memorandum 06-119, from Public Works as backup. Pending Bid Opening.

Deleted under Agenda Approval.

L. Resolution 06-92, Of the Homer City Council Authorizing Homer Accelerated Water and Sewer Program Deferred Water Assessments for Lots Included in the Hillside Acres Water and Sewer Improvement Project and Authorizing Water and Sewer Reserve Funds Deferred Water and/or Sewer Assessments for Lots Included in the East End Road Water and/or Sewer Improvement Project and Setting a Public Hearing Date of August 28, 2006. . City Clerk. Fiscal Note: Water and Sewer Reserve Funds were used for the East End Road Water and/or Sewer Deferred Assessments and HAWSP Funds were used for the Hillside Acres Water Deferred Assessments. Recommend adoption.

Memorandum 06-120 and 06-121, from Public Works as backup.

M. Resolution 06-93, Of the City Council of Homer, Alaska in Support of a Hyperbaric Chamber being Located in Homer and Requesting Assistance from Alaska's Congressional Delegation. Shadle. Recommend adoption.

N. Substitute Approved under Agenda Approval; Resolution 06-94(S), Of the Homer City Council Exempting the Homer Senior Citizens, Inc. from all City Property Tax meeting the Criteria of Kenai Peninsula Borough Code 5.12.100, Real Property Tax - Exemptions - Community Purpose Property - Conditions, and Authorizing the City Manager to Execute any and all Associated Documents. City Manager. Recommend adoption.

O. Resolution 06-95, Of the City Council of Homer, Alaska Amending the Homer Parks and Recreation Advisory Commission Bylaws Amendment, Regarding Agenda Deadline. City Clerk. Parks and Recreation Commission. Recommend adoption.

Memorandum 06-123, from Deputy City Clerk, as backup.

P. Memorandum 06-122, from Transportation Advisory Committee, Re: Speed Bumps on Mattox Street. Recommend approval.

Q. Memorandum 06-130, from Stark, Re: Joint Worksession with the Planning Commission regarding the Gateway Zoning District. Recommend approval.

Placed under New Business as Item C.

McLAY/SHADLE - MOVED FOR THE ADOPTION OF THE CONSENT AGENDA AS PRESENTED.

There was no discussion.

VOTE: YES: NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

VISITORS

A. Chamber of Commerce Report, rescheduled from June 26, 2006. (5 minutes)

Derotha Ferraro, Executive Director of the Chamber of Commerce, gave a report that included information regarding: Business Development and associated Committees and activity and Tourism promotions and activities.

ANNOUNCEMENTS/PRESENTATIONS/BOROUGH REPORT/COMMISSION REPORTS

A. Mayoral Recognitions. Outstanding Lady Mariners Softball Team and Coach Bill Bell. Special Presentation.

B. Memorandum 06-125, from Port and Harbor Commission, Re: Fish Dock area Rest Room.

C. Memorandum 06-126, from Port and Harbor Commission, Re: Marine Industrial and Marine Commercial District Proposed Changes.

D. Memorandum 06-132, through Economic Development Commission Chair, Re: Report to Council Mariner Park.

E. Mayor Pro Tempore McLay Report and Presentation on 50th Anniversary City Sister Cities International Conference.

Mayor Pro Tempore McLay emphasized and reported on the benefits and impact of the conference. He recommended future attendance.

PUBLIC HEARING(S)

A. Final Assessment Rolls - East End Road (portion) Sewer, East End Road Water and Sewer, Hillside Acres Water, Hillside Acres Sewer and Thompson Drive Sewer.

Virginia Birky, Hillside Acres Water and Sewer Assessment Districts, wanted to make sure that the Council had received she and her husband's, Clayton, Senior Exemption assessment deferment. She was advised that Council did have the information and would be making a decision on August 14, 2006. She thanked the Mayor and Council.

Wallace Hargrove (Lee), East End Road Water and Sewer Assessment District and resident, stated that on the 4th the assessment was $10,629. and now its $11, 778.10. He stated that he did not think that was a very good reason that the Council put out that because somebody joined their property that the rest of them have to cover that burden on it. This raised the assessment almost $1,100. He stated that he was not happy with the way the assessment was done to start with and that he has been here before. He advised that he has two pieces of property, which are small and that he has to pay the same as somebody who has a half of a mile, on each piece. He stated that the Council did not listen back then to the people and does not think that they are listening now. There is no reason to spend this much money and that he has a very good working system that he put in, in 89 and is still working good. Since they have been annexed in, all he has done is spend money, now if he has to pay $11,000 he'll have to pay someone to dig up his property to lay the lines. He stated that he does not think this is going pretty fair and that he spent a lot of money out there the last two years on account of the road, that he lost a lot of business on account of utilities and stuff and now is going to lose more. He told the Council that this is all that he has to say.

B. Ordinance 06-39(S)(2),Of the City Council of Homer, Alaska Approving the Creation of a Community Schools Division within the Department of Administration, Authorizing Administration of the Community Schools Program by the City and Submitting a Ballot Proposition to Approve the Continuation of Such Changes Beyond June 30, 2007 to the Voters at the Regular Municipal Election on October 3, 2006. Beyond June 30, 2007 to the Voters at the Regular Municipal Election on October 3, 2006. City Manager. Fiscal Note: Estimated Annual Budget $125,000 including user fees. Additional cost of adding to the Ballot and to election notices.(First Reading June 12, 2006 main motion for introduction postponed to June 26, 2006 with pending amendment, Public Hearing and Second Reading July 24, 2006.)

There was no public testimony.

NOVAK/SHADLE/WYTHE - MOVED FOR THE ADOPTION OF ORDINANCE 06-39(S)(2) BY READING OF TITLE.

There was no discussion.

VOTE: YES: NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

C. 2007 Budget Priorities, see Memorandum 06-113, from City Manager under Committee of the Whole.

There was no public testimony.

ORDINANCE(S)

None scheduled.

CITY MANAGER'S REPORT

A. City Manager's Report(Updates/Follow Up - 1. Implementing Transportation Plan, 2. Library Soiree, 3. Bishops' Beach Construction, 4. Homer Airport Improvements EIS, 5. Meth Education Program, 6. Beluga Slough Construction, 7. Construction news, 8. Fish Dock Road Redevelopment, 9. Concert on the Lawn July 29 and 30, 10. Pandemic Flu Response Plan see Resolution 06-88 on the Consent Agenda; July Employee Anniversaries - Joanne Perret Finance 17 years, John Wythe PWD 15 years, Barth Troughton HPD 11 years, Brian McCarthy PWD 7 years, Lori Sorrows Finance 7 years, Dan Olsen PWD 5 years, July Engebretsen PZ 4 years, Beth McKibben PZ 3 years and Ed Stading HPD 1 year; Letters from KPB, MatSu and Anchorage Mayors regarding Anti-Meth Education Campaign Funding Request; See Commission Reports EDC regarding Mariner Park and Kachemak Heritage Land Trust letter.)

Manager, Mayor and Council comments.

Item 4. Homer Airport Improvement EIS Public Hearing scheduled for July 27th from 6 to 8 conducted by DOT at City Hall. Improvements were previously supported by the City Council and that information would be useful to resend. There are some issues being actively discussed in the community such as concerns about impacts to animals and wetlands and about noise.

Item 5. Meth Education Program - contribution of $2,500 to the Borough, City Manager will bring something back to Council for the next meeting.

Proposed Gateway Ordinances, that the Planning Commission currently working on and with the City Attorney comments, are in the supplemental packet. The Commission plans to conduct another worksession before they do final approval and send these to the Council. Change Order to the Repaving project awarded via Resolution 06-90 will be before the Council next meeting to approve to include W. Soundview and Waddell Way.

Restroom in the area of the fuel float is very important for the harbor users and fish dock workers.

Demolition of the Manley Building and the other building where Desperate Marine is. The displacement plan for occupants has been discussed with occupants, temporary spaces discussed, long term solutions have been discussed but not short term solutions for Desperate Marine. The idea is to try to get the buildings knocked down, cleaned up and to get the land remediated before freeze up, the idea being that these lots can be RFP'd over the winter time. RFP sometime this winter assuming lots are prepared and ready. Demolition RFP will go out within about the next two weeks, waiting on environmental assessment regarding the existence of any hazardous substances, which needs to be factored into the RFP. Dovetail the demolition and relocation of businesses with the seasonality of the businesses. Keep in mind that the peak season for the businesses' busy season is probably now. Not going to tear the buildings down next month, but could in September. One building is vacant, however, there are plenty of rumors about people camping out there overnight. There is no processing going on in the buildings. Relocation would not be difficult. Sooner get going on this the better, this town has been waiting a long time. Mr. Hogan could move easier than Mr. Zimmerman.

B. Bid Report. (1.Bid - Kachemak Drive Phase I - Water and Sewer Project, See Resolution 06-91 on Consent Agenda - Note: may be rebid, 2. Bid - 2006 Street Repaving Project See Resolution 06-90(S) on Consent Agenda, 3. RFP - Professional Engineering Services - Water/Sewer Design Proposals for engineering will be received at the Office of the City Clerk, City Hall, City of Homer,491 E. Pioneer Avenue, Homer, Alaska, until 4:30 p.m., August 10, 2006. 4. Bid - High Mast Light Installation/Ramp 7 Replacement Sealed bids for the construction of the above project will be received at the office of the City Clerk, City Hall, City of Homer, 491 East Pioneer Avenue, Homer, Alaska, until 3:00 PM, Wednesday, August 9th, 2006. 5. Bid - Spruceview/Noview Road Project Phase I Sealed bids for the construction of Spruceview/Noview Road Project - Phase I will be received at the office of the City Clerk, City Hall, City of Homer, 491 East Pioneer Avenue, Homer, Alaska, until 2:00 PM, Wednesday, August 9th, 2006. A mandatory pre-bid conference will be held on Monday, July 31, 2006 at 9:00 a.m. at the Homer City Hall, 491 E. Pioneer Avenue. The meeting will be held to complete a site visit with interested Contractors and answer any questions bidders may have.)

C. Public Input on Question of the Week.

D. Other Reports, Advisory Petition, Second Fishing Lagoon.

COMMITTEE REPORT

A. Public Arts Committee (Next meeting scheduled for Thursday, August 10th at 11 a.m. City Hall Cowles Council Chambers.

B. Transportation Advisory Committee (Meeting July 18, 2006, at 5:30 p.m. August meeting is scheduled for Tuesday, August 15, 2006 at 5:30 p.m., City Hall Cowles Council Chambers.)

C. Comprehensive Plan Committee Report See Resolution 06-86 for final report.

D. Town Center Task Force (Synopsis of June 5, 19, and 29, 2006)

Comments on sufficiency of a 15 foot utility easement in conjunction with right of way sufficient, without right of way insufficient.

PENDING BUSINESS

NEW BUSINESS

A. Memorandum 06-115, from City Manager, Re: Resolution 06-23/KPB Parcel #175-040-0300.

Recommendation: I would recommend that the Council delay any further consideration of selling this parcel until the Parks and Recreation Commission (and perhaps other Commissions) can review it and until the administration is able to secure legal access from adjacent property owners. Authorize the City Manager to pursue possible legal access, land trades or other alternatives, and to prepare a resolution which amends Resolution 06-23 consistent with this recommendation.

WYTHE/McLAY - I WOULD MOVE FOR THE ADOPTION OF MEMORANDUM 06-115.

Councilmember Wythe stated that she would like to see this move forward in a priority manner.

There were no further comments.

VOTE: YES: NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

B. Memorandum 06-128, from Shadle, Re: Library Furniture Purchase.

Recommendation: Request a report from the City Manager, Finance Director and Public Works Director (approved the Purchase Orders).

SHADLE/WYTHE - SO MOVED FOR THE APPROVAL OF THE RECOMMENDATION OF MEMORANDUM 06-128.

There was no discussion.

VOTE: YES: NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

C. Consent Agenda Item Q. Memorandum 06-130, from Stark, Re: Joint Worksession with the Planning Commission regarding the Gateway Zoning District. Recommend approval.

WYTHE/SHADLE - I WOULD MOVE FOR THE APPROVAL, THE ACCEPTANCE OF MEMORANDUM 06-130.

Discussion regarding the whole concept of the Memorandum, that it was trite and sliding to say that there has been a lot of wasted effort on the part of the Planning and Zoning Commission, they have been working on it, maybe not the way Council would have had them working on it, but have been diligent. A joint worksession is needed and is supposed to be scheduled periodically.

WYTHE/McLAY - I WOULD MOVE TO DELETE THE CONTENT AND JUST RETAIN THE RECOMMENDATION TO SCHEDULE A JOINT WORKSESSION.

Concurrence that the Council may not necessarily agree with what the Commission has been working on. Do not see how this Council could ever pass what the Commission has been working on. The Commission has come up with a new Ordinance to Council's Ordinance on the area from Bidarka to West Hill, sort of a waste of effort. A Commissioner had suggested a joint worksession with the Council due to the confusion of the Ordinances. There is a lot of good in the information, the Commission has used a lot of time, not wasted time. Part of the process was to have a preliminary draft, a joint worksession and that the Council was to receive copies of the preliminary draft ordinances. A joint worksession on or before the next meeting to discuss two draft concepts. The sooner the worksession the better.

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

NO: STARK.

Motion carried.

WYTHE/ - I WOULD LIKE TO AMEND THIS, SCHEDULING A JOINT WORKSESSION TO INCLUDE A DATE HAVE IT DURING, BETWEEN THE COMMITTEE OF THE WHOLE AND THE COUNCIL MEETING AT THEIR NEXT MEETING.. (August 14, 2006)

There was no second.

Possible dates were discussed while reviewing the City Calendar.

WYTHE/SHADLE - I WOULD MOVE THAT WE SCHEDULE A JOINT WORKSESSION ON MONDAY, THE 31ST, OF COURSE CONTINGENT ON BEING ABLE TO COORDINATE THAT WITH PLANNING.

Monday, July 31st at 5 or 5:30 p.m. Other dates were commented on.

VOTE: (primary amendment 2.) YES: NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

There were no further comments.

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

Motion carried.

RESOLUTIONS

A. Reconsideration passes: Resolution 06-81, Of the City Council Revising Certain Portions of the Homer Public Library Policy Manual. City Manager/LAB.

Reconsidered, main motion is back on the floor. Debate and amendments are allowed.

BACK ON THE FLOOR - McLAY/SHADLE - SO MOVED FOR THE ADOPTION OF RESOLUTION 06-81 BY READING OF TITLE ONLY.

There was no discussion.

VOTE: YES: NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

B. Resolution 06-84, Of the City Council Amending the City Fee Schedule portion under Port and Harbor, Parking Fees, to Provide for Free Parking for Those Individuals with Assigned Reserved Stalls in the Small Boat Harbor. Shadle/McLay. Page 635

Memorandum 06-127, from Port and Harbor Commission. Page 637

WYTHE/SHADLE - SO MOVED FOR THE ADOPTION OF RESOLUTION 06-84 BY READING OF TITLE ONLY.

Comments: The location cited in the Resolution for the free parking for boat stall holders does not serve all of the stall holders. There are only two small areas wherein there is a charge for parking, all the rest is free parking. The Port and Harbor Commission is reviewing this with their future parking plan and to take this concept into consideration. At this point in time this really does not serve any point or purpose.

STARK/SHADLE - I WOULD MOVE TO POSTPONE THIS TO THE FIRST MEETING IN MAY.

Comments: This is still getting the cart before the horse. There will be opportunity for the Council to weigh in on the parking once more if the parking plan is constructed. Council should pay attention and continue to work closely with the Port and Harbor Commission and Director. The concept is nice and it is good to have a place for stall holders to park. Postponement is appropriate, it sets a time to bring it back and this could be defeated in May. There are things that are going to come up regarding the parking plan.

VOTE: (postponement) YES: STARK; SHADLE.

NO: McLAY, WYTHE, NOVAK .

Motion failed.

There was no discussion.

VOTE: (main motion) YES: SHADLE, STARK.

NO: WYTHE, NOVAK, McLAY.

Motion failed.

C. Resolution 06-85, Of the City Council of Homer, Alaska Urging the Department of Fish and Game to Open Kachemak Bay for Subsistence Crab Fishing and Promote a More Environmentally Friendly Gear Type. Shadle.

SHADLE/WYTHE/STARK - SO MOVED FOR THE ADOPTION OF THE RESOLUTION.

Mayor Hornaday and Councilmembers had no objection to Jack Montgomery coming to the public address table regarding this Resolution.

Jack Montgomery informed the Council that he has been a resident of Kachemak Bay for 26 years, has owned and operated Rainbow Tours for 25 years and advised that he has been extensively using Kachemak Bay during that time. He expressed his opinion that it is a given right to the people of Alaska to live their subsistence life style that all came here to take part in, that they have been denied access to Kachemak Bay for crab subsistence fishing for quite a few years now. The crab stocks that are improving and thus leads to the possibility of opening a Subsistence Tanner Crab Fishery for the people of this area. He reported on the opportunity that he provides for the school kids in the spring to come through the Center for Coastal Studies to do an "on board" oceanographic research program to teach young kids the ways of the Bay. One of the parts of the program is a crab fishery in Peterson Bay, wherein a crab pot is set for two to three hours. Over the past four years in the two to three hour soak, of the crab pot, there has been 40 to 120 crab in the small comb pot. Mr. Montgomery informed the Council that this year they saw a large number of legal sized Tanner Crab. He suggested a plan wherein there is a line from the end of the Homer Spit to 60 Foot Rock and let everyone fish outside of that line, from the first of August to the end of December and only during daylight hours with no overnight fishing. He expressed his belief that the Bay could sustain that kind of a fishery and that this would let all go back to being able to harvest a few crab and enjoy that life style.

Mr. Montgomery responded to Councilmembers: That enforcement is the duty of the Department of Fish and Game, who probably don't have funds to manage a crab subsistence program in Kachemak Bay and probably why it is not allowed. A public discussion should come up on this. Fish and Game does a bottom drag of twenty five miles of Kachemak Bay every year over a week period, killing a lot of resource of the critical habitat area and is the way of counting the crab stock. He suggested opening a discussion by the people of the Bay that want to use this. Regarding the, hard on bottom dragging, that Fish and Game has a grid set up of 25 plots from the outer Bay to the head of Kachemak Bay and every year do a hard bottom one mile drag in each of the 25 plots. Yes, Fish and Game continues to drag the bottom of Kachemak Bay, because if they stop they'll lose their funding for that portion of their research. Because Kachemak Bay is a critical habitat area that practice should be once every five or ten years, to give the stocks a complete chance. It would make a lot of sense to do a test fishery with pots and not hard on the bottom trolling.

Council comments: This discussion needs to go before the Board of Fish and that the Department of Fish and Game and Board of Fish make rules and regulations in relation to this and that all the Council can do is to request them to look at this again. Council has no power only a voice on this subject. It is not the City's position to request fishing regulations, being out of the City's jurisdiction.

This Resolution is asking Fish and Game to look into this matter and urge them to possibly look at chances of having a fishery here. Fish and Game does, hard on the bottom, dragging of every square mile. Correspondence from Nicky Szarzi notes that the Cook Inlet is a none subsistence area with the exception of some areas around Port Graham, so by definition this would not be an area looked at and that the Department of Fish and Game is monitoring the crab and if it should become a sustainable harvestable area they would consider for reopening. Sounds like Fish and Game is doing what the Resolution asks, just not on the time schedule that one might like to see it done.

VOTE: YES: SHADLE, STARK.

NO: McLAY, WYTHE, NOVAK.

Motion failed.

D. Resolution 06-86, Of the City Council Acknowledging the Final Report from the Comprehensive Plan Committee and Authorizing the City Manager to Proceed with the Request for Proposal Process. McLay, Chair of Committee.

Memorandum 06-129, from City Planner, as backup.

McLAY/WYTHE- SO MOVED FOR THE ADOPTION OF RESOLUTION 06-86 BY READING OF TITLE ONLY.

Mayor Pro Tempore and Chair of the Task Force McLay briefly reported that it went quick, the Task Force reviewed the basic plan, recommended some things that needed to be looked at, the task assigned was accomplished, to put together an RFP (Request for Proposals) for the Comprehensive Plan Revisions looking for long term, a minimum of ten years with at tentative outlook for twenty years.

VOTE: YES: NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

E. Resolution 06-87, Of the City Council of Homer, Alaska Authorizing the Sale of Lot 18, Mattox Subdivision to Kenai Peninsula Housing Initiatives, Inc. (KPHI) at Appraised Value Pursuant to HCC 18.12.060. City Manager. Fiscal Note: Revenue, $55,000. To be deposited in Alternative Depreciation Account.

Memorandum 06-116, from City Manager, as backup.

WYTHE/McLAY - MOTION FOR THE ADOPTION OF RESOLUTION 06-87 BY READING OF TITLE ONLY.

Councilmember Wythe stated that she does want to go ahead with selling this property by bid process and that there is a potential to acquire more than the $55,000.00, adding that KBHI may be the highest bidder.

WYTHE/McLAY - TO POSTPONE RESOLUTION 06-87 AND COME BACK WITH A SUBSTITUTE AT OUR NEXT MEETING.

Agreement was expressed with the idea of taking competitive bids. KPHI does have a significant project adjacent to this parcel. Two things to consider the ultimate project in that area plus the value of the property.

VOTE: (postponement) YES: NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

COMMENTS OF THE AUDIENCE

Audience comments upon any matter.

Steven Rouse, Executive Director of KPHI and fifteen year Homer resident, expressed appreciation for the opportunity to address the Council's decision and gave the Council some additional information. The property was recently appraised by a certified appraiser who did comparables in the

area and that is what the property was appraised for, pointing out that as an 8/10s of an acre parcel over 35% of that parcel is undevelopable due to the drainage channel. It cannot be accessed for a business off East End Road due to the huge drop off in the area, therefore not viable for a business

proposition. He stated, with respect to fair value, KPHI is more than willing to pay that. He reminded the Council that two years ago the Planning Commission recommended donating that property to KPHI. KPHI took lot 19, at the City's request developed it in a very environmentally sensitive manner. The State of Alaska, Department of Housing and Urban Development and the Alaska Mental Health Trust Authority put over $2.5 million into the community of the City of Homer providing affordable housing on the properties to the south. KPHI invested over $150,000.00 of corporations money to mitigate that drainage ditch in a manner well beyond anything required to do at the City's requested, to the benefit of the neighborhood down stream. Recent testing, according to what KPHI has been told, says that the water has a better flow, is cleaner and has less turbidity than the natural flow due to the sediment ponds and other mitigating factors that they constructed. As such, the Alaska Housing Finance Corporation, Department of Health and Social Services, Mental Health Trust Authority, Rasmuson Foundation and just about every other funder that has invested in the two properties south are a little bit concerned about the City's disposition of this particular parcel and the manner in which it might be developed and the impact on the affordable housing development to the south. KPHI has invested a great deal of money and would like to continue to invest a great deal of money, has planned for a community use facility on that property, with crisis housing for indigent folks that the Homer Police Department has said are in sore need of. He asked that when the Council reconsiders this that they not only weigh the monetary benefit of selling the piece of property, but the responsibility for the community benefit and the working relationship for those funders. He thanked the Council for the three minutes.

Brad Zubek, Zubek Inc., advised that he drove down from Kenai tonight and that he was in attendance anticipating the award of the Kachemak Drive Phase I Water and Sewer Improvements and to be present for any questions, hoping that there would be some discussion. He expressed his hope that the Council would award this job to Zubek, Inc. and that he will be available for any questions should the Council have any and that he looks forward to working with the Council and with the Public Works Department, Walter and Carey Meyer, to construct a successful project. He thanked the Mayor and Council.

Steve Zimmerman stated that there is much to comment on of what he heard, but the reason he came is that he has one of the buildings that the City/Council wants to tear down, that the City Manager came out and politely informed him that he was going to get an eviction notice, which was nice. He noted that he is supposed to be out of the building by August 31st, about six or five weeks from now. He stated that he would like for the Council to see fit to give him an extra 60 days on top of that to move out of there. Nothing in this City moves in six weeks, can't hardly get permits, can't find places, can't get people. He stated that he would just have to pack it all in a trailer and go away in six weeks, that this is where he is coming to now after looking at options and that they are not plentiful at this point. It took this administration and the administration before this one years and years to deal with after they terminated the last lease on it. He emphasized that he was promised time and time again that in a couple of weeks, in a month, in a year the City is going to do something and will have something for him and will come up with an answer. He noted that their lease negotiations went on for 14 or 16 months and came to naught. So, does six weeks seem reasonable to say, Okay, we're all done now, go away in six weeks? He stated that he needs a little more time to deal with this. He commented about the thinking that this might put the City in little bit of a bind on the other issue, stating that he does not think in the long run that it is that big of a deal, the time table on the other buildings. He told the Council that this is really all that he has to say on this right now. He commented on the trolling and that he does believe that they do 25 trolls through one mile squares, but that they do use a small troll and make only one pass through it and so are not picking up a lot of ground. He advised that they also use a troll because they go into all of the other fish that they pick up too and are not just checking crab but are checking the whole biology of what they go through and see what they have. He relayed his understanding that they pretty much gently set those crab back into the ocean and do not kill very many crab, adding that it is not as harmful as a lot of people would think. He thanked the Council for their time. In response to Councilmember Shadle's question about how long Mr. Zimmerman has been in negotiations with the City over that piece of property, he stated that he believes about 14 months since the RFPs were accepted in February last year up until they finally said that they cannot do this anymore and are done with it, about two months ago. Kevin Hogan interjected that it was April 21st. Mr. Zimmerman stated that this is a lot and that at one point they went, he said he thinks, as much as four months between their response to the lease committee and an answer back to them on points.

Mayor Hornaday recollected that this is the one wherein the City Manager said, "Before freeze up"? After confirmation the Mayor noted that would be more than six weeks.

City Manager Wrede stated that, if they could, they would like to be all done and have the buildings all knocked down and the land remediated, before freeze up if possible.

Kevin Hogan advised that he is the President of the Auction Block Company and was a principle in the Harbor Leasing involved in the negotiations for those lots also. He noted that he just recently received a notice to vacate from the City dated July 6th. He echoed Mr. Zimmerman's comments about being in negotiations with the City for 14 months over this deal and that he finally just pretty much had it with now getting this notice to vacate. The initial assertion is that they did not receive a response from the most recent letter. He stated that the City got a response in two days, about 100 times faster than any response that they ever got from the City, that all of the Council received it, those with email, and noted that Councilmember Novak responded immediately. Mr. Hogan commented about having discussions over their response and exchanged email. He shared, with Councilmember Novak consent, the email with the other Council members and other members of the public. He advised that in the notice to vacate the City indicates that they have a redevelopment plan. that what really irritates him is that the City drug them out over a 14 month circus, in bad faith, with no intention of fulfilling the conditions of developing that property. He stated that they entered in with and in good faith and committed a lot of money and time and that it was just a circus. He expressed his feeling that there is already an agenda within the City about who is going to get that property and what is going to happen to it. He pointed out that they have been good corporate citizens in this town, bringing in 40% to 60% of the halibut that comes to this town and now they are moving. He noted that they have put a economic activity into this community and that he thinks that they have just been treated like crap. He informed the Council that he had asked for this to be put on as an agenda item so that the Council could hear some of the issues and there apparently was not any interest in that, there was a bit of a discussion at the worksession and one of the comments was regarding one of issues regarding financing that the City just needs to make the Small Business Administration Alaskan Industry Authority and all the major banks come around to their position. He stated that he will be glad to sit back and watch and see "you guys" do that, but that he does not think this is going to happen. He noted that nothing is going to happen when the City tears those buildings down, because of the position that makes them unfinancable and that the City has taken an asset that was the City's best performing asset when McGee's had it with twelve businesses on that property generating $30 to $40 million of economic activity in ths community and the City has gone to a coffee stand. He inquired as to how much the City is getting out of a coffee stand? He told the City to look where they are going.

Councilmember Shadle stated that he really has to weigh in on this matter. He commented about the McGee long term lease, then a different Mayor/Manager/Council told Mr. McGee, only talking about the Manley building here, that he needed to bring that building up to code and if he did not the City would pull the lease way from him, because that building needed to be demolished. So they went ahead and did it, took the long term lease away from him, because he could not afford to bring it up to code. The next thing that happened they turned around and subleased it back out, in other words the City kind of got put into a compromising situation, which is why he stands where he stands. Mr. Shadle stated that he thinks that building needs to come down, that the City needs to start all over and that there are a lot of people in this community that would like to see it come down.

Carey Meyer, Public Works Director, stated that he appreciates Mr. Zubek coming down, that they both had hoped that at this meeting that they would be awarding the Kachemak Drive Phase I Project, that he has not be able to communicate as much as he would like with Mr. Zubek, because the Procurement Policy indicates that once bids have been accepted that no communication should take place until an award can be made. He advised the Council that the problem is that the bids are more than 15% of the engineer's estimate and exceed what the property owners were told that this project would cost. He noted that there are some options that he is trying to consider at this point and would hope that they would not have to reject all bids and start over again. He reported that between himself and the City Manager and others are Public Works, that they are going to try to figure out how to continue to proceed with this project. He stated that he just wanted to give the Council a little bit of background on where they are.

COMMENTS OF THE CITY ATTORNEY

City Attorney Tans was not present.

COMMENTS OF THE CITY CLERK

City Clerk Calhoun had no comment.

COMMENTS OF THE CITY CLERK

City Clerk Calhoun had no comment.

COMMENTS OF THE CITY MANAGER

City Manager Wrede had no comment.

COMMENTS OF THE MAYOR

Mayor Hornaday stated that he did attend the change of Command for the Hickory and Roanoke, with the City Manager and Councilmember Stark. The Mayor reported that he had a good time at the Ted Stevens Fish deal, that Councilmember Stark was also in attendance, that they were bragging about their 60 pound kinds and that he, the Mayor, had a good time passing around a picture of a 200 pound halibut from down here. He reported attending part of the meetings of the Port and Harbor and Planning Commissions and expressed appreciation for the hard work of the Commissions.

COMMENTS OF THE CITY COUNCIL

Mayor Pro Tempore McLay commented that at the Sister City meeting he met someone from Roanoke, Virginia and apprized them about the Roanoke stationed here in Homer. He noted that one runs into things all over the world that bring all back together. He advised that he has been getting calls about a need to police parking on the Spit and that he has received numerous complaints about parking problems on the Spit such as parking on the shoulder of the road, he stated that he brought this up to see if it could be looked at and that he had said that he would into this matter. He stated that he thought there were some good discussion and comments tonight and that he appreciates all of it. He thanked all.

Councilmember Shadle had no comment.

Councilmember Start suggested that the members that plan to attend the AML Summer Conference August 10 - 12, 2006 need to register. (City Clerk advised after meeting that all have been registered.) He reported attending a reception in Sterling as part of the Kenai River Classic, talked to a number of US Senators and a number of State Legislators about a number of items including Coasts Guard and UA and was asked to help arrange for the reception to be in Homer next July. Also attending from Homer were the Mayor, President of the Chamber of Commerce and the Vice Chair of the Hospital Service Area Board, a very good attendance at the function and delightful for all.

Councilmember Novak reemphasized his desire to have a smooth transition on demolishment on the Manley Building and the use that is going on there. He stated that he does not really wish to see people disrupted in the middle of their business season if its at the peak of their season. He voiced his thought that this can be done in a smoother way, that there are some things that are there that have been lingering for years and that he would like to see this resolved and that the lease structure format needs to be readdressed, that this is part of the process and so, asks the City Manager, as he knows he will and has, to continue to work on that.

NOVAK/WYTHE - MOVED FOR RECONSIDERATION OF RESOLUTION 06-85 AT THE NEXT MEETING (AUGUST 14, 2006) AND DISCUSS FROM ANOTHER POINT OF VIEW MAYBE.

There was no discussion.

VOTE: YES: NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

Councilmember Wythe spoke to an item that is not on Council's agenda and has never been on Council's agenda, as far as she can tell, and for which is giving Council a lot of really bad press right now, the annexation of Kachemak City. She noted that this Council has never, as a body, spoken towards the desire, intent or purposing of annexing Kachemak City, yet this seems to come back to Council again and again through the community members receiving continued solicitations from a member of the Council. In the interest of maintaining a good working relationship with Kachemak City, she asked that the Council put forward a Resolution, which states that as a Council they are not soliciting them into annexation with the City of Homer and should they, at a point in the future, desire to be annexed into the City of Homer that Homer would be more than happy to facilitate that on their behalf if they came to us as opposed to being solicited. She expressed her feeling that the solicitations are being presented very inappropriately.

Mayor Hornaday stated that he would join Councilmember Wythe in presenting this Resolution.

ADJOURNMENT

There being no further business to come before the Council, Mayor Hornaday adjourned the meeting at 9:01.06 p.m. The next Regular Meeting is scheduled for Monday, August 14, 2006 at 7 p.m. and the next Committee of the Whole is scheduled for MONDAY, August 14, 2006 at 4 p.m. All meetings scheduled to be held in the Homer City Hall Cowles Council Chambers located at 491 E. Pioneer Avenue, Homer, Alaska.

Candidacy Filing Period for Mayor (Incumbent James C. Hornaday) and Two Councilmembers (Incumbents are Dennis Novak and Val McLay) opens August 1st at 8 a.m. and closes August 15th at 5 p.m. City Clerk's Office.

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MARY L. CALHOUN, CMC, CITY CLERK

APPROVED: __________________________