Session 05-20, 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 Council Chambers located at 491 E Pioneer Avenue, Homer, Alaska, and opened with a moment of Silence for those who our community has recently lost, after which he lead all in the Pledge of Allegiance. ⁽¹⁾

PRESENT: COUNCILMEMBERS: McLAY, NOVAK, STARK, WYTHE, YOURKOWSKI, HEIMBUCH - telephonically.

STAFF: CITY CLERK CALHOUN

CITY MANAGER WREDE

FINANCE DIRECTOR BAUGH

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 4:02 p.m to 5:29 p.m. regarding the Regular Meeting Agenda items and specifically the State and Federal Capital Budget Requests and Junk Vehicles, also discussed were the Budget Priorities for 2006 and intersections.

A Special Meeting was held from 5:35 p.m. to 6:08 p.m. to conduct an Executive Session Regarding Hospital Land Negotiations.

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, Consent Agenda: Substitute Resolution 05-81(S), and Pending Business Item A. was removed.

PUBLIC COMMENTS UPON MATTERS ALREADY ON THE AGENDA

Public Comments upon any matter on the agenda except Visitors, Hans Klausner, Homer Tree Stewards, and Homer Foundation; and PUBLIC HEARING items, Budget Priorities, Ordinance 05-36, Rescinding Ordinance 05-28(A), and Ordinance 05-37, Accepting and Appropriating a $1 Million from the State for the Library.

Ken Castner, City resident, voiced concerns with regard to Ordinance 05-14(S), that the fund investments have not been defined, with fund/investment securities and risks, with the verbiage of the Ordinance. He commented about votes and simple majority, plurality of votes, super majority etcetera and voiced some consternation, adding that he did not know that a simple majority or plurality could ratify a law that requires a super majority to change it. He emphasized the need for a sense of permanence and that this is not for funding day to day actions and emphasized Council's fiduciary responsibilities. He commented about Council having to make sound decisions, under law and voiced his opinion that the Permanent Fund Ordinance, although good in concept, needs more consideration. He encouraged Council to do the best for the benefit of the tax payers and recommended utilizing the Homer Foundation for the secure investment process.

Leonard Welles commented on Memorandum 05-125, the liquor license transfer and that he objects since Alice's Champagne Palace has not been open for the Alcohol Beverage Control Board (ABC Board) required time per day, per week and that Alice's has not been open or conducted business for most of 2005 and that the new business will reopen Alice's in 2006. He expressed his opinion that these comments need to go to the ABC Board.

Marga Raskin read a letter, here are points in the letter: Homer is the Halibut Capital of the world and a renowned center for arts. Visitors are shocked by the rusting and unsightly junk vehicles. Junk vehicles are an eyesore and embarrassment for the residents, business establishments and tourists. Junk vehicles leak oil, fuel, hydraulic and transmission fluids, Freon, mercury, and PCBs on the land, into the soil and pollute the precious water. Marie Vinson of the Kenai Borough Department of Solid Waste (262-9667) indicated that the City can develop a plan to remove and recycle junk cars. A collection site should be established and the public informed. Junk cars must be properly prepared by being stripped and drained of all potential pollutants, garbage, and antifreeze prior to being hauled to a solid waste facility. The removal and recycling of junk cars will restore Homer to a beautiful and healthy environment, as it was prior to the careless, irresponsible and common place dumping of junk cars. This program will increase property values thus increasing property tax revenues. Monetary gains to be realized should motivate the Council to take action regarding the unsightly and polluting junk cars. She added that she got inspired to get involved and displayed an article she read in the Homer News June 9, 2005, "Anchor Point Man Delivers Crushing Blow to Junkers." She noted that Duane Harvey, 235-8244, has been doing this great work.

Frank Griswold commented on Ordinance 05-33 and the letter in the packet by Dorothy Melambianakis. He commented that Ms. Melambianakis wants to get this lot rezoned in light of her wish for a single family resident and a land sale and that she commented that there would be a higher tax revenue if the parcel is developed residentially. He said that he was quoting from the City Attorney's legal opinion of April 3rd, 1998, commented about the amending process in Homer City Code 21.70.010(c), about lot size and that the businesses that were cited had been there since 1982 and were not changed after the Supreme Court Decision of 1996. He commented that, over two years ago, the City Attorney pointed out that the rezone application itself misses almost all of the most important questions and that the Attorney suggested that it be revised to ask questions like describing how it is consistent with the purpose of the Comprehensive Plan, describe the public purposes served, and describe the benefits and detriments of the proposed zoning to the community, neighboring land owners and to the property owners. Mr. Griswold provided some color coded zoning maps to show that this rezone does not clear up any zoning boundaries and that it would result in an exclusionary spot zone as well as an inclusionary one. He stated that he wonders if there is now a need to convert Rural Residential land to General Commercial. He emphasized that this same property was converted four years ago from Rural Residential to General Commercial One, adding that now it is being requested to be converted back. He stated that if there were a public benefit to having more commercial land in 2001 why does this now need to be put back to Rural Residential?

Dorothy Melambianakis, City resident, addressed comments from the last Council meeting with regard to the Ordinance 05-33, rezone and reconsideration thereof: She expressed her belief that only a change to the zoning ordinance text requires a petition by 50 registered voters and that in this case it is a zoning map amendment, which requires application by the majority of the property owners concerned. She commented that the 1996 Alaska Supreme Court Case, Griswold vs. City of Homer case that states that the classic definition of spot zoning is the process of singling out a small parcel of land for use classification totally different from that of the surrounding area for the benefit of the owner of such property and to the detriment of other owners, which, she pointed out, is not the case here. She noted that this is residential zoning as shown in the Homer Comprehensive Plan 1999 Update and that it is well within the residential section on that map. She noted that the only development in this area is residential and that there is a nursery off East End Road off of Meadow Drive and off of Alder and East End there is a an accessory building. She voiced her belief that residential zoning is very compatible with the parcels to the west and south of this parcel in question since these are already zoned residential and that it is compatible with the current parcels to the north and east, now vacant. She advised that the parcels even further north and east have already been developed residentially. She emphasized that she has not heard or seen anything in the minutes that anyone came up with any detriment to the community for this rezone. She further noted that the 1996 Supreme Court case also says that consistency with the Comprehensive Plan is one indication that the zoning action in question has a rationale basis and is not an arbitrary exercise of the City zoning power. She concluded that for these reasons she recommends that this parcel be rezoned.

Philip Alderfer, Pratt Museum Board, commented on the general concept of some sort of a Permanent Fund with any sort of EXXON VALDEZ money that might come to the City. He said that he wanted to echo some of Mr. Castner's comments and that of others, and that he agrees with the notion of windfall money or punitive damages or some sort of unexpected revenue stream being used for purposes beyond budgeting for immediate needs. He commented that good and productive uses for money can always be found and that there will always be budget challenges that Councils; past, present and future; are gong to face. He stated that putting aside some portion of those funds for a long term benefit from unanticipated money is a good and a laudable public policy goal. He encouraged the Council to think about what the plan will be to use those funds for community benefit, the reason that these funds are being or would be provided, for some sort of community wide benefit. He voiced his concern that setting aside these funds in a permanent fund without a mechanism for use would be tying the hands of this and future Councils. He emphasized that, more importantly, the Council has already made good and appropriate financial and fiduciary decisions to fund community wide organizations in various ways. He advised the Council that he is absolutely not present to suggest that all of the money or half or any specific amount should be used for any particular project, but that there are commitments that the Council has made that are in place. He further encouraged the Council to think about ways to use this money to provide for long term funding streams for existing projects rather than simply going into a budget year next year, two years or ten years down the line with one hand tied behind their back. He commented about money sitting in an account that would be harder to get at then normal revenues and that when the money is really needed it needs to be more readily accessible. He expressed appreciation and whole hearted agreement with the concept of using unanticipated revenues for things other than solving short term budgetary issues. He emphasized that the Pratt Museum and others would like to see some sort of budgetary stability for their own reasons.

RECONSIDERATION

A. Memorandum 05-121, from City Clerk, Re: Yourkowski Reconsideration of Ordinance 05-33, Of the City Council of Homer, Alaska, Amending the Homer City Zoning Map to Rezone Portions of the General Commercial One Zoning District (GC1) to Rural Residential Zoning District (RR).

Recommendation: Recommend approving reconsideration.

YOURKOWSKI/STARK - MOVED FOR THE ADOPTION OF THE RECOMMENDATION OF MEMORANDUM 05-121.

Councilmember Yourkowski elucidated his reason for reconsidering.

Councilmember Stark noted that the legal opinion has been received and backs Council's action of June 27, 2005.

VOTE:(reconsideration) YES: YOURKOWSKI, NOVAK, HEIMBUCH.

NO: McLAY, WYTHE, STARK.

MAYOR: TIE VOTE: NO.

Motion fails.

CONSENT AGENDA

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

A. Homer City Council unapproved meeting minutes of June 27, 2005 Special and Regular Meetings. City Clerk. Recommend approval.

B. Ordinance 05-38, Of the Homer City Council Accepting and Appropriating a $5,000.00 Matching Grant for Volunteer Fire Assistance from the State Department of Natural Resources for the Homer Volunteer Fire Department and Authorizing the City Manager to Execute the Appropriate Documents. City Manager. Fiscal Note: Revenue and Expenditure Account 151-736, Small Fire Department Grants. Match is budgeted "in-kind" services Recommend Introduction and First Reading, conduct Public Hearing and Second Reading August 8, 2005.

Memorandum 05-128, from Fire Chief as backup.

C. Resolution 05-78, Of the City Council Noting the Sufficiency of the Petition for the West Noview/South Mullikin/South Wright Street Road Reconstruction and Paving Improvement District, Creating the District and Setting the Public Hearing Date for August 22, 2005. City Clerk. Fiscal Note: Homer Accelerated Roads Program and property owner assessments. Recommend adoption.

D. Resolution 05-79, Of the City Council of Homer, Alaska Awarding the Contract for the Homer Generator Replacement to the Firm of Sunland Development Company, LLC of Homer, Alaska in the Amount of $79,519.00 and Authorizing the City Manager to Execute the Appropriate Documents. City Clerk. Fiscal Note: Budgeted in Acct. 151-784. Grant appropriations - Ordinances 04-29 and 05-31. Recommend adoption.

Memorandum 05-122, from Public Works as backup.

E. Resolution 05-80, Of the Homer City Council Authorizing the Formation of the Kachemak Drive Phase One Water Assessment District at 75% Property Owner Share of Assessments and Authorizing the City Manager to Proceed with the Preparation and Construction of the Kachemak Drive Phase One Water Project. City Clerk. Fiscal Note: Homer Accelerated Water and Sewer Program and Property Owner Assessments. Estimated project cost is $397,210.00, total property owner assessments at 75%, $297,907.50. 16 parcels = estimated at $18,619.22 assessment per parcel. Recommend adoption.

F. Resolution 05-81(S), Of the Homer City Council Authorizing the Formation of the Kachemak Drive Phase Two Water and Sewer Assessment District at 75% Property Owner Share of Assessments and Authorizing the City Manager to Proceed with the Preparation and Construction of the Kachemak Drive Phase Two Water and Sewer Project. City Clerk. Fiscal Note: Homer Accelerated Water and Sewer Program and Property Owner Assessments. Estimated project cost is $3,277,953.00 with 25% paid for by the Homer Accelerated Water and Sewer Program and 75%, paid for by the property owners via the equal share per parcel methodology, equaling an approximate $28,586.80 per assessments at 75%, $297,907.50. 86 parcels, with two exemptions, of which will be paid by the program. . Recommend adoption.

Placed under Resolutions at the request of Councilmember Yourkowski.

G. Resolution 05-82, Of the City Council of Homer, Alaska Approving and Accepting the Renewal of the FY 2006 Jail Service Contract with the State of Alaska, in the Amount of $378,403.34 and Authorizing the City Manager to Execute the Appropriate Documents. City Manager. Fiscal Note: $344,000.00 Revenue budgeted in Account 100.4503.030, this is an increase of $34,400.30. Recommend adoption.

H. Memorandum 05-123, from City Clerk, Re: Travel Authorization for Mayor and/or Councilmembers and/or City Manager and Department Heads to attend the 2005 Summer Legislative Committee/Alaska Conference of Mayors Meeting, August 18 - 20, 2005 in Skagway, Alaska. Fiscal Note: Travel and Subsistence are budgeted. Recommend approval.

I. Memorandum 05-124, from City Clerk, Re: Vacation of North 65.5 feet of Bartlett Street between Lot 1 Block 8 and Lot 2 Block 7 Fairview Subdivision (Plat HM 56-2936) and adjacent to Tract A South Peninsula Hospital Subdivision (Plat HM 98-4); within Section 18 Township 6 South, Range 13 West, Seward Meridian, Alaska; within the City of Homer and the Kenai Peninsula Borough; KPB File 2005-121; Location: City of Homer. Recommend non veto.

J. Memorandum 05-125, from City Clerk, Re: Liquor License Transfer for Alice's Champagne Palace to Homer Beverages Inc. Fiscal Note: Revenues. Recommend non objection and approval.

Councilmember Yourkowski requested that Item F. be placed under Resolutions.

WYTHE/YOURKOWSKI - MOVED FOR THE APPROVAL OF THE CONSENT AGENDA AS READ WITH ONE EXCEPTION. (Exception: Item E. Resolution 05-81(S)).

No discussion.

VOTE: YES: NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

VISITORS

A. Hans Klausner, Tree Board. (5 minutes)

Mr. Klausner, representative of the group that calls themselves Homer Tree Stewards, gave a report: Homer Tree Stewards have been meeting for several months and have done some events in the City of Homer that have included projects to promote and encourage healthy trees and forests in the City of Homer. Applied for and received a grant of $1,000.00 from the Alaska Department of Forestry to provide an Arbor Day Event and during the Community Park Day gave away over 1,000 Spruce Trees. Organized orchard tours, public schools education events, and tree planting demonstrations. The hope is to provide more events in the City of Homer and work with Community Schools to provide tree health, care and maintenance classes as well as tree steward classes for interested people in the City. The group was put together in the spirit of Council's Resolution 98-70, which outlined the goals of a Tree Board for the City to work as a volunteer citizens advisory committee and to provide public input to the public maintenance supervisor. The Homer Tree Stewards encourage the City to seat a board of five people and encourage the consideration of the five who currently serve in the group: Bridget Paule - Tree Steward, Lindsay Winkler - Garden Club member, Ashley Reed - Professional Tree Maintenance Technician, Valerie Connor and Hansel Klausner - interested citizens.

At the Mayor's suggestion the City Clerk will contact Mr. Klausner tomorrow.

Mr. Klausner offered the assistance of the Tree Stewards in forming the Board.

Mayor Hornaday stated that he is not sure if this should be a separate committee or if this should be under the Parks and Recreation Commission. He noted that at some point this will proceed and thanked Mr. Klausner for the Tree Steward's work.

B. Homer Foundation (10 minutes)

Mayor Hornaday noted the Memorandum from the Homer Foundation.

Ken Castner provided the history of how the Homer Foundation got involved with the City of Homer and the fundings: That the Homer Foundation was created to provide long term philanthropy in the Southern Kenai Peninsula, it is a community foundation and is made up of a basket of funds, some are endowments for charitable institutes; the Pratt, Friends of the Homer Library, Hospice all have endowments. The City of Homer has a Field of Interest Fund opened in 2000 with $5,000.00 that is added to every year. Homer Foundation has never been a recipient of any money from the City of Homer. The funds have been pass through to save the City of going through a parade of people during the annual budget appropriation process. The Pratt used to be included in that lump sum given to the Homer Foundation and along the way, due to the objective criterium, the Council made a policy decision to fund the Pratt separately and cut the money to the Homer Foundation accordingly. Homer Foundation is in the business of perpetuity, for long term, which is why they are very interested in being involved in any notions about a permanent fund. He relayed his recollection of previous discussions with previous Councils, that eventually the non profits would go off budget, an endowment slowly built and there would not be arguments about the last 3% of the budget every year for some of those institutions. Homer Foundation is an organization that facilitates money, manages money and encourages philanthropy.

Mr. Castner expressed his personal hope that some portion of the EXXON money, since a punitive award, would go into the Homer Foundation to beef up the City's Field of Interest Fund. He expressed an additional personal hope that the City, rather than paying cash for bunch of new projects, might create a bond fund. This would go to vote and would not have to go to Bond market since there is bond fund, a revolving sort of a fund.

In response to the Mayor, Mr. Castner advised that out of the $40,000.00 allocated from the 2005 budget, $20,000.00 was distributed plus the interest from the City fund and $20,000.00 was put into the fund. The balance of the City's Fund is about $106,000.00 at today's value plus about $6,000.00 in interest.

Mayor Hornaday related the dollars given to the non profits and the differing opinions in the community of whether or not the City should be funding non profits.

Councilmember Wythe elucidated the reasons and basis for the Permanent Fund and the general concepts thereof. There was a discourse between Ms. Wythe and Mr. Castner.

Councilmember Stark commented in support of placing the issue of the Permanent Fund on the ballot. Mr. Castner responded reiterating his public comments and previous meeting comments.

Councilmember Yourkowski stated that Mr. Castner has made some good points and that not all of the issues have been addressed.

Councilmember McLay called a Point of Order, since the comments were turning deliberative.

Mayor Hornaday recognized the Point of Order and concurred.

ANNOUNCEMENTS/PRESENTATIONS/BOROUGH REPORT/COMMISSION REPORTS

Lou Stewart, Parks and Recreation Commissioner, gave the monthly Commission Report. The Commission is busy, getting up to speed on the Beach Policy and put their stamp of approval on the Adopt a Bench program. The Commission supports a Fire Works Display at the 50th Anniversary of the Winter Carnival and would like to see the Council budget some funds toward the February Fireworks Display. He expressed the Commission's appreciation for the Beach Policy, a well done document; for City Staff, Julie Engebretsen, City Clerk's Office staff and Tamara Hagerty.

There was a brief comment by Mayor Hornaday and Councilmember Stark. The Mayor also noted that Lou Stewart coaches Little League Softball.

A. Mayoral, Citizen Recognitions.

Kristen Faulkner - Flag Essay - Old Glory, won National Competition

Homer's Mariners Baseball Team and Lady Mariners Softball Team

State Championship Contenders

Sportsmanship and Academic Awards

Aaron Gilbert, Luke Gilbert and Alex Trieweler won Team Tournament Honors

Aaron Gilbert named Player of the Game

Brittney Van Sandt was named to the All Tournament Team

Girls Mariner Soccer Team State Tournament Contenders

Academic Award

Claire Siekaniec - high scorer and named to the All State Team

Toni Parlow - Homer Middle School - BP Teacher of Excellence

Patricia Jay - Homer High School - BP Teacher of Excellence

Andy Haas - Award for Volunteer Work with Youth Court

Jim Rearden - Honorary Degree Doctor of Science from UAF

2005 Graduates: Homer Flex School, Homer High, Homer Middle School, West Homer Elementary, Paul Banks Elementary and Kachemak Bay Branch UA

B. Mayoral Proclamation in Memoriam of Donald Eugene Gilman

PUBLIC HEARING(S)

A. Budget Priorities for the Coming Year.

Leonard Wells, City resident, voiced his appreciation of the Council requesting public comments regarding priorities. He voiced a preference that the City Council more fully fund the maintenance and depreciation type of budgets, put the money into repairing things such as the steps and handrails in front of City Hall, and trucks and snow removal equipment. He encouraged the Council to budget for road maintenance needs and to not wait for Federal Funding. He voiced support, as a highest priority, education type funding for school kids. He stated that if someplace like the Pratt wants stability in budgeting, that zero is a very stable number, pointing out if an entity, such as the Pratt, expects zero they will not be disappointed to get more. He commented on the sales tax increase being approved to balance the budget to give to the Homer Foundation and the Pratt and that now the public is told that the Homer Foundation did not even spend the $40,000.00 that was appropriated to them, therefore, Council should take a close look at this and see if this should even be a City appropriation.

B. Ordinance 05-36, Of the City Council Rescinding Ordinance 05-28(A) Appropriating a Loan of $575,000.00 from the Special Projects Fund, Account 151-275, to Construct the New Homer Public Library. City Manager. Fiscal Note: Funds remain in 151-275. (First Reading June 27, 2005, Public Hearing and Second Reading July 25, 2005.)

There was no public testimony.

WYTHE/McLAY - MOVED FOR THE ADOPTION OF ORDINANCE 05-36 BY READING OF TITLE FOR SECOND AND FINAL READING.

There was no discussion.

VOTE: YES: NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

C. Ordinance 05-37, Of the City Council of Homer, Alaska Accepting and Appropriating a $1 Million Legislative Grant from the Alaska State Department of Community and Economic Development (DCED) for the New Homer Public Library and Authorizing the City Manager to Execute the Appropriate Documents. City Manager. Fiscal Note: Revenue and Expenditure Account Funding 151-722 from DCED $1,000,000.00 addition to New Homer Library Project. (First Reading June 27, 2005, Public Hearing and Second Reading July 25, 2005.)

There was no public testimony.

WYTHE/McLAY - MOVED FOR THE ADOPTION OF ORDINANCE 05-37 BY READING OF TITLE FOR SECOND AND FINAL READING.

There was no discussion.

VOTE: YES: NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

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.)

A.1. Ordinance 05-14(S), 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, and Submitting the Ordinance to the Voters for Approval. Wythe. (Second Reading July 25, 2005 - will require amendment to adopt the substitute.)

WYTHE/YOURKOWSKI - MOVED FOR THE ADOPTION OF ORDINANCE 05-14(A) BY READING OF TITLE ONLY FOR SECOND AND FINAL READING.

There was no discussion.

STARK/MOVED TO AMEND ORDINANCE 05-14(A) TO REPLACE WITH ORDINANCE 05-14(A) AS READ.

Amendment died for lack of a second.

YOURKOWSKI/NOVAK - MOVED TO AMEND ORDINANCE 04-14(A) BY ADDING A SECTION THREE THAT THE HOMER CITY COUNCIL CREATE A COMMITTEE OF SEVEN APPOINTED BY THE MAYOR TO GAIN COMMUNITY INPUT TO ADDRESS ISSUES SUCH AS THE PURPOSE OF THE FUND, THE PERMANENCE OF THE FUND AND THE ADMINISTRATION OF THE FUND AND TO RECOMMEND AMENDMENTS TO THIS ORDINANCE.

Councilmember Yourkowski noted that there are some things to work out and since the Council would probably appoint a Committee to address the issues.

Councilmember McLay voiced concern about passing the Ordinance prior to establishing the Committee. He suggested defeating the amendment and tabling the Ordinance to accommodate the verbiage regarding the Committee, adding that the Committee idea is good.

Councilmember Wythe commented along the same lines as Councilmember McLay and that if the intention is for the Committee to determine the investment and financial requirements that go to supporting the establishment of the Permanent Fund that it is probably appropriate.

Councilmember Novak suggested another amendment, which was ruled as being better after voting on the amendment.

VOTE: (primary amendment 1.) NO: McLAY, WYTHE, YOURKOWSKI, STARK, NOVAK, HEIMBUCH.

Motion failed.

NOVAK/McLAY - MOVED TO TABLE ORDINANCE 05-14(A), AND ESTABLISH A COMMITTEE TO REVIEW THE PROCESS AND BRING IT BACK LATER.

VOTE: (table) YES: McLAY, WYTHE, YOURKOWSKI, STARK, NOVAK.

NO: HEIMBUCH.

Motion carried.

B. If Reconsideration is approved. Ordinance 05-33, Of the City Council of Homer, Alaska, Amending the Homer City Zoning Map to Rezone Portions of the General Commercial One Zoning District (GC1) to Rural Residential Zoning District (RR). City Manager. (First Reading June 13, 2005, Public Hearing and Second Reading on June 27, 2005, Reconsideration Issued by Yourkowski on June 28, 2005, Main Motion for final adoption back on the floor if reconsideration passes on July 25, 2005.)

Reconsideration failed therefore no pending action and Ordinance stands as adopted on June 27, 2005.

Mayor Hornaday called for a recess at 8:27 p.m., reconvening the meeting at 8:35 p.m.

WYTHE/HEIMBUCH - MOVED TO RECONSIDER MOTION TO TABLE ORDINANCE 04-14(A).

There was discussion regarding reconsidering to define the parameters of the Committee.

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

Motion carried.

MOTION TO TABLE IS BACK ON THE FLOOR.

WYTHE/NOVAK - MOVED TO AMEND FOR ORDINANCE 05-14(A) TO BE COMMITTED TO A COMMITTEE OF SEVEN MEMBERS, THE MEMBERS TO BE DESIGNATED AS TWO COUNCILMEN, AN INDIVIDUAL FROM THE HOMER FOUNDATION, A NON PROFIT ORGANIZATION PARTICIPANT, AN INDEPENDENT FINANCIAL INVESTOR AND TWO MEMBERS OF STAFF, ONE OF THOSE BEING THE FINANCE MANAGER, THE COMMITTEE TO BE APPOINTED BY THE MAYOR AT THE AUGUST 8TH MEETING AND RECOMMENDATIONS TO BE DEVELOPED AND PROVIDED BACK TO THE COUNCIL IN A SIX MONTH PERIOD.

There was no discussion.

VOTE: (amendment to motion to table) YES: McLAY, WYTHE, YOURKOWSKI, STARK, NOVAK.

NO: HEIMBUCH.

Motion carried.

There was no further discussion.

VOTE: (table as amended) YES: STARK, NOVAK, McLAY, WYTHE, YOURKOWSKI.

NO: HEIMBUCH.

Motion carried.

CITY MANAGER'S REPORT

A. City Manager's Report (Updates and follow up: Preliminary Budget Priorities, Police Department/Retiree Rehire Program, Hospital Lease, Overhead Power Lines, Sterling Highway, Sterling Highway/Lake Street Intersection, Skyline Drive Fire Station, Public Works Equipment Storage Pole Barn, City Projects - Hillside Acres Water and Sewer, East End Road Water and Sewer, New Library, Homer Multi Purpose Ice Facility driveway, Harbor Paving, Jack Gist Park, Karen Hornaday Hillside Park, Deep Water Dock Corrosion Protection Retrofit, DOT Project Bartlett Street with water, sewer and drainage upgrades, KESA (Kachemak Emergency Services Area) Contract, Conference Center Feasibility Study, Chamber of Commerce Economic Development Committee and City Staff participation, Chamber invoice for advertising and use of $515,000.00 budgeted for Economic Development; DOT's Homer Intersection Planning Study deadline extended to August 22nd; July Employee Anniversaries: Joanne Perret - Finance 16 years, John Wythe - PWD 14 years, Barth Troughton - HPD 10 years, Andy DeVeaux - HPD 6 y ears, Brian McCarthy - P/H 6 years, Lori Sorrows - Finance 6 years, Steve Smith - PHD 5 years, Dan Olsen - Custodian 4 years, Julie Engebretsen - P/Z 3 years, Beth McKibben - P/Z 2 years and Quint Walhood - PWD 1 year; Letter from Scott Thomas, DOT Central Region Traffic Engineer Re: Draft Intersection Planning Study; and Letter from Derotha Ferraro, Executive Director Chamber of Commerce Re: Invoice with itemized list.)

Council voiced concurrence with the City Manager regarding giving the Chamber of Commerce $15,000.00. There will be an action item on the next agenda to accomplish that appropriation.

The Chamber has formed an Economic Development Board and that there is discussion about requesting a grant from the City. It was commented that any start up money from the City be budgeted next year.

City Manager advised that the Ordinance regarding overhead power lines is in the works. It was noted that Anchorage and Soldotna have Ordinances to this effect.

Skyline Drive Joint Fire Station and Location were discussed. There is a possible transfer of BLM land, 40 acres, to the City, which has met with some opposition. Councilmember Stark displayed maps and noted that the stations need to be no further then 10 miles apart. He also commented on ISO ratings. Mayor Hornaday advise that he has had several phone calls from the Center for Alaskan Coastal Studies reminding that the Wynn Nature Center deed has some restrictions on it and that it has to be used for certain purposes and guarantees a view for Billie Fisher, Mr. Wynn's daughter.

COMMITTEE REPORT

A. Road Standards Committee (Meeting July 26th 5:30 p.m.)

Councilmember Yourkowski noted the upcoming meeting and encouraged public attendance, involvement and input.

B. Public Arts Committee. (August 24th at 11 a.m.)

C. Conference Center Feasibility Study Steering Committee. (Meeting scheduled for July 26th at 4 p.m. Conference Room.)

D. Community and Economic Impact Standards Task Force. (Meeting notes from June 27th and Meeting held at 3 p.m. July 25th.)

E. Town Center Development Committee (Meeting Synopsis of June 16, 2005. Meeting held Tuesday, July 19th at noon. )

PENDING BUSINESS

A. Memorandum 05-97, from City Manager, Re: South Peninsula Hospital Lease.

Removed under Agenda Approval.

NEW BUSINESS

A. Memorandum 05-126, from Mayor, Re: State and Federal Capital Budget Requests.

Recommendation: Council discuss State and Federal Capital Budget requests.

YOURKOWSKI/WYTHE - MOVED TO ADOPT THE RECOMMENDATION OF MEMORANDUM 05-126.

VOTE: YES: NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

Mayor Hornaday noted that this was discussed during Committee of the Whole and that the Council in somewhat of a consensus mode agreed to the priorities that the Mayor will be pursuing in Washington D.C.: Deep Water Dock. Harbor. Water and Sewer projects. He noted that both State Senator Lisa Murkowski and Senator Gary Stevens encouraged the City to get to work early on budgets and especially capital budgets, adding that apparently the state is going to have a large capital budget.

There was no further discussion

.

B. Memorandum 05-127, from Mayor, Re: Junk Vehicles.

Recommendation: Council discuss junk vehicles.

YOURKOWSKI/NOVAK - MOVED TO ADOPT THE RECOMMENDATION OF MEMORANDUM 05-127.

There was some discussion not pertaining to motion that was curtailed.

VOTE: YES: NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

Councilmember McLay cautioned everyone that the determination of a junk vehicle is subjective and that he will fight this to some degree. He pointed out that old vehicles may be restorable. He noted that his business is to repair broken vehicles and that just because a vehicle is broken and parked does not mean that it is irreparable. He urged caution regarding determining what is junk and disagreed with the definition in the City Code.

Mayor Hornaday summarized the Committee of the Whole discussion wherein the City Manager is going to try to coordinate fellow from Anchor Point and Borough people, adding that this is very complicated.

Councilmember Stark concurred with Councilmember McLay, adding that restoring old vehicles often requires parts off of old vehicles and that beyond that he is in favor of getting rid of junk vehicles.

Councilmember Yourkowski encouraged Councilmember McLay to work with the City Manager and Chief of Police regarding revisions to the City Code Chapter on Abandoned and Junk Vehicles.

Councilmember Novak noted that the concern is really with abandoned vehicles.

RESOLUTIONS

A. Resolution 05-83, Of the City Council Acknowledging the Feasibility Study for a Potential New Conference Center. City Manager.

WYTHE/YOURKOWSKI - MOVED FOR THE ADOPTION OF RESOLUTION 05-83 BY READING OF TITLE ONLY.

There was no discussion.

VOTE: NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

B. Consent Agenda Item F. Resolution 05-81(S), Of the Homer City Council Authorizing the Formation of the Kachemak Drive Phase Two Water and Sewer Assessment District at 75% Property Owner Share of Assessments and Authorizing the City Manager to Proceed with the Preparation and Construction of the Kachemak Drive Phase Two Water and Sewer Project. City Clerk. Fiscal Note: Homer Accelerated Water and Sewer Program and Property Owner Assessments. Estimated project cost is $3,277,953.00 with 25% paid for by the Homer Accelerated Water and Sewer Program and 75%, paid for by the property owners via the equal share per parcel methodology, equaling an approximate $28,586.80 per assessments at 75%, $297,907.50. 86 parcels, with two exemptions, of which will be paid by the program. . Recommend adoption.

YOURKOWSKI/NOVAK - MOVED FOR THE ADOPTION OF RESOLUTION 05-81(S).

Councilmember Yourkowski noted that the property owner concerns were the catalyst for the Resolution Council passed regarding Conservation Easements. He advised that he plans to bring forward a Resolution that requires the engineers on these projects to consider bluff erosion and hydrology issues. He stated that he wants his neighbors on Kachemak Drive to know that some of their issues are being addressed. He expressed his opinion that there was good testimony that the district should be smaller.

Comments were made by Council and Public Works Director that the project will assist in alleviating some of the erosion problems, since the water from septic systems travels to the bluff thereby eroding the bluff. There were only 20 out of the 86 properties that protested this district. A health issue exists. This is not the last time that the development or project will before the Council.

City Manager advised that design will be the next phase that comes to Council.

Public Works Director Meyer responded to Council inquiry that the main generally follows the right of way, that they make every attempt to stay out of private property and to keep the facilities as shallow as possible, and added some comments about services. He stated that he is not aware of any ingenious ways to install water and sewer without some disturbance to the ground. He relayed federal government requirements when more than one acre is disturbed regarding a storm water pollution prevention plan to control erosion and sediment transport during the construction of the project. Disturbance will be minimized and there will be some temporary inconvenience to those who live in the area.

Councilmember Yourkowski noted that there is three phases to Kachemak Drive, that address the entire length of Kachemak Drive. He expressed a desire for a pedestrian or bike trail on top of the sewer line, wondering if this is possible and about the costs.

Public Works Director Meyer stated that this will be definitely looked at, that this was on the STIP list and that the City has taken an interest and when the state makes Kachemak Drive a priority the state promised that they would improve the road and provide for pedestrian facilities. It is a detriment to the City to have those kind of improvements constructed without water and sewer lines being installed. He emphasized that since the City will have the utilities in the state will have no excuse to not do the right thing both road and pedestrian wise.

City Manager Wrede responded to inquiry regarding interest rates or finance rates charged, that there have been lower rates in the past that correspond to the interest rates that DEC charges the City for a loan.

Public Works Director Meyer advised application has been submitted for a loan.

VOTE: NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

COMMENTS OF THE AUDIENCE

Audience may comment on any matter.

Leonard Wells stated that he is slightly disappointed that the Council did not do something on the permanent fund other than putting it off for the next Council to consider. He also commented on the junk cars and that if it is on private property, just because a piece of metal was at one time and car and is not licensed that it does not mean that it is not art, and/or that it is not being saved for future purpose that might be twenty five years down the road. He commented on the subjectivity and on the lowering of property value. He advised the Council that as long as he is living on his property he wants to keep the property value as low as possible so that he pays as little money as possible and that property value to him is whatever he paid for it and that it does not increase just because someone moves in next door and builds an ugly, in his mind and good looking in their mind, mansion. He commented that his could be a $20,000.00 house and theirs could be a $50 million house and that does not mean that it is not a piece of junk.

Ken Castner voiced appreciation of Council's thoughtful decision about the permanent fund. He commented about junk cars and the one that ended up about two lots above the movie theater, abandoned, vandalized, vandalized some more and then someone came along and burned it and it is still sitting there. He commented on the white van that spent the winter in the parking lot at Carrs. He suggested considering the locates for sewer clean outs on Kachemak Drive, so that there are not big manholes sitting in the middle of a swamp. He voiced his opinion that not much can be done about putting sewer lines in since these are so big, but that water lines can be discreetly placed with a boring technique to push the line and these soils may be susceptible to allow an easy push of a water line as opposed to backhoe work. He noted that Carey Meyer is a civil engineer and knows a bunch of this stuff. He stated that manholes are unsightly and that placement in the middle of nothing should be avoided. He thanked the Council.

Rick Foster, non City resident, commended the job of the Council and voiced appreciation of Councilmember Stark's comments on the importance of sewer and water in the highly erosive area, adding that it can only help. He said that he wondered if there are some options and when doing the digging if a french drain type of a thing could be continued. He commented on junk vehicles and stored vehicles, noting that there is a definition for storage, interjecting his opinion that on private property vehicles should be stored, since this is a toxic thing.

Mayor Hornaday voiced appreciation to Mr. Foster for serving on the Borough and City Planning Commissions.

COMMENTS OF THE CITY ATTORNEY

City Attorney Tans was not present.

COMMENTS OF THE CITY CLERK

City Clerk Calhoun noted that the Council Candidacy filing period opens on August 1st and closes August 15th.

COMMENTS OF THE CITY MANAGER

City Manager Wrede had no comment.

COMMENTS OF THE MAYOR

Mayor Hornaday had no comment.

COMMENTS OF THE CITY COUNCIL

Councilmember Yourkowski stated that Drew Scalzi will be missed.

Councilmember Stark voiced an interest in the idea of having junk cars around one's house to reduce property values and reduce taxes. He told Leonard Welles that he hoped that there were not too many people listening. He reported that he was asked on Sunday to deal with the state to try and get the Mile Posts on East End Road, an excellent idea and that he will be pursuing that when the superintendent gets back from vacation on Monday. He announced, for the people on Diamond Ridge and Skyline Drive, that the State has called for bids for the paving of those roads, a project he has been working on for over ten years. He noted that this is also one of the top priorities for the Homer City Council. Mr. Stark noted that the timing of the bid call will provide for putting in good soil this fall, particularly the last mile of Skyline Drive with paving to follow next year. He also commented that Ordinance 05-34 was voted down by 3 no and 2 yes votes on June 13th, relating to liability for the payment of members of Pers for the City Council. He commented on the City's liability of $6 million for PERS as this time. He stated that the way this works out is that when these, approximately, four or five Councilmembers, are able to retire and get their $125.00 per month, that equates to, for their five years of service, about $600.00 a month for those five years that they have put in, which is a little bit different than the $50.00 a month that the members of the City Council that are not in PERS get. He stated that he thinks that he is going to continue to do everything he dan to see that this is ended.

The rest of the Councilmembers had no comments.

ADJOURNMENT

There being no further business to come before the Council, Mayor Hornaday adjourned the meeting at 9:30 p.m. The next Regular Meeting is scheduled for Monday, August 8, 2005 at 7 p.m. and the next Committee of the Whole is scheduled for Monday, August 8, 2005 at 4 p.m. A Special Meeting is scheduled for Monday, August 8, 2005 at 5:30 p.m. for the Homer City Council to sit as the Board of Adjustment to conduct an Appeal Hearing on the Appeals to the Board of Adjustment Regarding Conditional Use Permits 05-09 and 05-10. All meetings scheduled to be held in the Homer City Hall Council Chambers located at 491 E. Pioneer Avenue, Homer, Alaska.

________________________________________

MARY L. CALHOUN, CMC, CITY CLERK

Approved: __________________________________

1. Don Gilman, Joe Lawlor, Judge Cranston, Drew Scalzi, the children who were in an accident on July 24th.