Session 00-14, a Special Meeting of the Homer City Council was called to order at 7:30 p.m. by Mayor Cushing at the Homer City Hall Council Chambers located at 491 E. Pioneer Avenue, Homer, Alaska, and opened with the Pledge of Allegiance.

PRESENT: COUNCILMEMBERS: WELLES, FENSKE, KRANICH, MARQUARDT, CUE

STAFF: CITY MANAGER DRATHMAN

CITY CLERK MARY CALHOUN

DEPUTY CITY CLERK BENSON

FINANCE DIRECTOR BAUGH

ACTING FIRE CHIEF ELMER

PORT/HARBOR DIRECTOR ABBOTT

PUBLIC WORKS DIRECTOR MEYER

ABSENT: COUNCILMEMBER: YOURKOWSKI (excused)

AGENDA APPROVAL

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

A. Teleconference Notice for Councilmember Yourkowski

There were no objections to Councilmember Yourkowski participating telephonically. However, Mr. Yourkowski's was unable to participate.

B. Backup Information Changes: to Memorandum 00-42, Letter of non objection from KPB Clerk and to Memorandum 00-43, Final City Manager Evaluation Compilation.

Resolution 00-70, was pulled from the agenda at staff's request.

There were no objections to the agenda changes.

Mayor Cushing asked if item A. under Announcements/Presentations/Borough Reports/Commission Reports, could be moved forward to this point in the agenda.

There were no objections.

Mayor Cushing presented Eileen Bechtol, recently resigned Planning Director, with a plaque listing her many accomplishments for the City of Homer and presented her with a dozen red roses. She said one of the highlights of her time with the City was working with the City employees especially Beverly Guyton.

PUBLIC COMMENTS UPON MATTERS ALREADY ON THE AGENDA

Sherry Bess, Director of the Animal Shelter and representing the Board of Directors of the Homer Animal Friends, shared some photos of the shelter depicting its deterioration and the rodent damage. She voiced appreciation for the receipt of the Governor's matching grant funds that Mayor Cushing and the Council secured for the Animal Shelter in 1998 and 1999. Although not enough to finish the shelter it is enough for a good start on site preparation and a foundation. No land has been located for the Animal Shelter and the present location does not allow for expansion. She asked for Council's assistance in locating land. Some of the key problems at the Animal Shelter are: 1) Disease risks, because there is no isolation area and no safe quarantine area. 2) Snow and ice around the shelter make walking treacherous. 3) Shelter is cramped, small and out grown years ago. 4) Shelter can no long accommodate the animals received and the needed volunteers. 5) Building continues to deteriorate. 6) Rodent infestation contributing to the facility destruction and pulling out of wall insulation. 7) Takes a long time to clean and never seems clean. 8) Embarrassment at tourists and visitors seeing how Homer takes care of its lost and abandoned pets. Ms. Bess advised Council of the concern regarding winter's cold winds and snow blowing in through the dog doors and the water freezing in the water bowls beside the sleeping pallets. The winters make for miserable conditions for the puppies, old dogs, small dogs, short haired dogs and dogs that are used to living inside. She acknowledged that the Mayor and Council are dealing with some tough issues right now and urged them to continue to work toward the goal of a safe and humane animal shelter for Homer and not to let it get buried under all the other issues. This is one of the City's most urgent project needs and the current shelter was set up to be a temporary solution to the problem of unwanted animals. She invited the Mayor and Council to tour the Animal Shelter to see for themselves how desperately a new Animal Shelter is needed. She thanked Council for the opportunity to talk to them.

In response to Mayor Cushing, Ms Bess reported that the area at the new ball field was reviewed and discussed with the Public Works Director. There is insufficient space and the adjacent owner does not want to donate any land. She emphasized that it is extremely expensive and/or hard to find a location that is not view property, not residential or near a residential area. Ms. Bess stated that the Animal Shelter and Homer Animal Friends have exhausted all their resources. She asked for assistance.

Leslie Hoffmeister, Animal Shelter volunteer, addressed Ordinance 00-17 and the need for a new Animal Shelter that grows daily. There is significant damage from the elements and rodents. The plywood has separated from the framing studs. When the dog runs are hosed down, she said that she wonders how much longer the worn plywood will hold up to the water pressure, the walls being that thin. She emphasized that the rot along the foundation is extreme and there is little solid structure left to do any temporary patch work. The point is that the building is beyond repair and falling apart more and more every day. The problems that Sherry Bess mentioned are safety and health problems to the staff, volunteers, visitors and animals. As winter comes on there are more concerns due to the extreme hazards to visitors and people bringing in their animals. The Animal Shelter is an important necessity in the community. Almost everyone who volunteers at the Animal Shelter is also a member of Homer Animal Friends, whose main focus is to promote and fund the spade/neuter program to lessen the number of unwanted and uncared for animals. Part of the staff/volunteer's job is to educate the public about responsible, health care taking of the animals. The better this job is done the better off will be the animals and the community. The current facility uses up and wastes lots of resources, electricity, heat, water and human energy. She emphasized that a facility that is of the proper materials, design and size will allow for safe, humane care with a much greater efficiency, which translates to better service for the animals and for the community. She voiced her thanks to the Mayor and the members of the Council for what they have done in the past to support the Animal Shelter. She asked for continued support to keep this as an up front issue, not just to have a nicer facility, but to be able to provide humane care of animals right now. She reiterated the high risk to humans and animals.

Pat Boone, spade/neuter coordinator for Homer Animal Friends, reported that they are working very hard to stop so many animals being born. She advised that they give assistance in education, financially and any way they can. She stated that they are really split right now with the emphasis on trying to get a new shelter and trying to raise money, such as the Fur Ball fund raiser and the dog jog, Strut Your Mut. She noted that they really need to get back to the business of spade/neuter, their primary goal. If a new shelter could be obtained and they could get back to what they really want to do, then both would win. She encouraged the City to help them out and make this project a priority.

RECONSIDERATION

CONSENT AGENDA

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

A. Homer City Council regular meeting unapproved minutes of June 26, 2000. Recommend approval.

B. Memorandum 00-41, from City Clerk, Re: Setting a public hearing date for the Hazel Avenue and Poopdeck Street Road Assessment Districts. Hearing date to be August 28th. Recommend approval.

Memorandum from Public Works as backup.

PULLED FROM THE AGENDA: C. Resolution 00-70, Of the City Council of Homer, Alaska Awarding the Bid for one Waste Oil Vacuum Truck and Pumping System to the firm of Environmental Solutions/Slurry Liquidators of Anchorage, Alaska in the amount of $53,731 and Authorizing the City Manager to Execute the Appropriate Documents. Public Works. City Clerk. Fiscal Note: Grant funds budgeted in acct: 415-5901.902 $134,600.88. Recommend adoption.

Memorandum from Public Works as backup.

D. Resolution 00-71, Of the City Council of Homer, Alaska Approving and Accepting Amendment One to the Public Safety Office Space Lease and Authorizing the City Manager to Execute the Appropriate Documents. HPD. City Clerk. Fiscal Note: Budgeted revenue acct: 100.4650.160 $723.24 per month. Recommend adoption.

E. Resolution 00-72, Of the City Council of Homer, Alaska Authorizing and Supporting Application by the Homer Volunteer Fire Department for the Mini Grant Assistance Program for a Portable Radio Upgrade and Authorizing the City Manager to Execute the Appropriate Documents. Fire Department. City Manager. Fiscal Note: Potential Revenues for 2001. Recommend adoption.

F. Resolution 00-73, Of the City Council of Homer, Alaska Accepting the Public Library Assistance Matching Grant in the Amount of $6,300.00 with Budgeted Local Match of $7,000 to Assist Libraries with Their Operational Expenses and Authorizing the City Manager to Execute the Appropriate Documents. Library. Fiscal Note: Grant and match are budgeted. Grant in acct: 100.5228.146 and match in acct: 100.145. Recommend adoption.

G. Memorandum 00-42, from City Clerk, Re: Liquor License Stock Transfer for Kharacters. Recommend non objection and approval.

H. Resolution 00-74, Of the City Council of Homer, Alaska Approving and Accepting the Renewal of the Jail Service Contract with the State of Alaska and Authorizing the City Manager to Execute the Appropriate Documents. HPD. Fiscal Note: Revenue budgeted in acct: 100.4503.164, $336,003.04.Recommend adoption.

Memorandum from the Police Department as backup.

WELLES/CUE - MOVED TO ADOPT THE RECOMMENDATIONS OF THE CONSENT AGENDA.

VOTE:(Except Item. C.) YES: FENSKE, WELLES, MARQUARDT, KRANICH, CUE.

Motion carried.

VISITORS

ANNOUNCEMENTS/ PRESENTATIONS/ BOROUGH REPORT/ COMMISSION REPORTS

A. Special Presentation (Plaque and flowers to Eileen Bechtol)

Mayor Cushing announced that the CIP/Legislative request process is at the Commission level and he encouraged input. He noted that the Council is having a worksession this Thursday, August 3rd from 3 to 5 p.m. regarding annexation.

PUBLIC HEARING(S)

ORDINANCE(S)

A. Ordinance 00-14, Of the City Council of the City of Homer Amending the Official Maintenance Map of the City of Homer by Adding 1300 Lineal Feet of Hazel Avenue and 460 Lineal Feet of Poopdeck Street for Permanent Maintenance. Public Works. City Clerk. (First Reading 07/31/00, Public Hearing 08/14/00, Second Reading 08/28/00.)

Memorandum from Public Works as backup. Fiscal Note: Yearly Maintenance Costs estimated at $8,800.00.

MARQUARDT/CUE - MOVED FOR ADOPTION OF ORDINANCE 00-14 BY READING OF TITLE ONLY FOR FIRST READING AND INTRODUCTION.

Public Works Director Meyer was asked to review the lineal footages for accuracy. The Public Works Director stated that the estimated cost of $8,800 for maintenance of the Hazel Avenue/Poopdeck Street project may be overstated.

There are seven City owned lots in the project. ⁽¹⁾

VOTE: YES: CUE, FENSKE, WELLES, MARQUARDT, KRANICH.

Motion carried.

B. Ordinance 00-15, Of the City Council of the City of Homer, Alaska Amending Homer City Code Title 4, Elections. City Clerk. (First Reading 07/31/00, Public Hearing 08/14/00, Second Reading 08/28/00.)

WELLES/CUE - MOVED TO ADOPT ORDINANCE 00-15 BY READING OF TITLE FOR FIRST READING AND INTRODUCTION.

Councilmember Welles noted that this brings the City's elections into the 21st Century.

VOTE: YES: KRANICH, CUE, FENSKE, WELLES, MARQUARDT.

Motion carried.

C. Ordinance 00-16, Of the City Council of Homer, Alaska Accepting and Appropriating a Reimbursement Grant of $8,098.07 through the State of Alaska Division of Emergency Services from the Federal Emergency Management Agency (FEMA) Public Assistance Program for Homer Small Boat Harbor Electrical Repairs and Authorizing the City Manager to Execute the Appropriate Documents. Finance. City Clerk. (First Reading 07/31/00, Public Hearing 08/14/00, Second Reading 08/14/00.)

Fiscal Note: Revenue from Grant to acct: 400.4912.601 of $8,098.07 and Expenditure for Electrical repairs to harbor from acct: 400.5209.611 of $8,098.07.

Finance Director Baugh clarified that the portion expended, $8,852.87, for snow removal was purposely not included in the reimbursement request. The only amount, $8,098.07, requested was for the repairs needed to the electrical system for the damage due to the high snow volume.

WELLES/FENSKE - MOVED TO ADOPT ORDINANCE 00-16 BY READING OF TITLE FOR FIRST READING AND INTRODUCTION.

VOTE: YES: MARQUARDT, KRANICH, CUE, FENSKE, WELLES.

Motion carried.

D. Ordinance 00-17, Of the City Council of Homer, Alaska Accepting and Appropriating a Matching Grant of $52,500.00 for the Homer Animal Shelter and $49,689.00 for the Homer Chamber of Commerce from the State of Alaska Division of Community and Economic Development (DCED), Appropriating the Local Match and Authorizing the City Manager to Execute the Appropriate Documents. Mayor. City Clerk (First Reading 07/31/00, Public Hearing 08/14/00, Second Reading 08/14/00.)

Fiscal Note: Animal Shelter grant revenue acct 100.165 of $52,500 and match of $16,036.00. Chamber of Commerce is a pass through of $49,689 and the match of $15,178 comes from the Chamber of Commerce.

CUE/KRANICH - MOVED TO ADOPT ORDINANCE 00-17 BY READING OF TITLE FOR FIRST READING AND INTRODUCTION.

Councilmember Cue commented that this funding assists in the opportunity to move forward with providing the community with a new Animal Shelter that is desperately needed, as was discussed earlier in the public comment. She asked City Manager Drathman if he had an opportunity to identify any parcels within the City for the site for a new Animal Shelter.

City Manager Drathman affirmed and that he identified a couple of parcels with one of the sites identified belonging to the State. The City has to wait for an answer while the State goes through their disposal process.

Councilmember Cue asked for the Sherry Bess to provide the Council with an identified list of priorities for the site; such as size, water, sewer, as well as any other things; that would be of assistance to the City Manager in identifying pieces of property that may be appropriate for the building of a new Animal Shelter.

Sherry Bess advised that these items have already been identified on an existing list and she can get this information to the City Manager in a couple of days.

Councilmember Cue stated that she would like to make a formal memo to the City Manager to identify parcels and then maybe come up with a time frame for the purchase of a parcel or for putting together the appropriate documents for getting the parcels available for the building of a new Animal Shelter. As far as time frames go, two months is an appropriate amount of time to give the Manager and his staff. She asked what account this funding goes into and what is the balance.

Finance Director Baugh responded that a special account is set up for the Animal Shelter grants that includes the new grant, the 1998 matching grant of $110,000 and the matches for both grants. There is approximately $190,000.

Councilmember Marquardt asked about the latest design for the shelter, how the new shelter will impact the Animal Shelter operating budget and what the expected budget is for a new shelter.

Sherry Bess responded that she does not have that information, but will get it.

Mayor Cushing asked Councilmember Cue if she is interested in being the point of contact for the Animal Shelter/Homer Animal Friends.

Councilmember Cue affirmed and there were no objections from the rest of the Council.

VOTE: YES: MARQUARDT, KRANICH, CUE, FENSKE, WELLES.

Motion carried.

E. Ordinance 00-18, Of the City Council of Homer, Alaska Appropriating $70,000.00 from the General Fund Fleet Reserve for the Purchase of a Replacement Utility Vehicle. Fire Department. City Clerk.(First Reading 07/31/00, Public Hearing 08/14/00, Second Reading 08/14/00.)

Fiscal Note: $70,000 from GF Fleet Reserve.

MARQUARDT/WELLES - MOVED FOR ADOPTION OF ORDINANCE 00-18 BY READING OF TITLE FOR FIRST READING AND INTRODUCTION.

Scott Elmer, Acting Fire Chief, responded to Council inquiry that this is replacing a 1974 jeep pickup with a utility box on the back that carries a lot of the backup equipment for fire fighting. This vehicle is currently overloaded, overweight and in a dilapidated shape. This vehicle needs to be replaced with something more efficient and dependable for the same type of service and duty. The new vehicle will include an adaptation to fit the supplies for the breathing equipment and fire investigation equipment that needs cabinet organization.

VOTE: YES: WELLES, MARQUARDT, KRANICH, CUE, FENSKE.

Motion carried.

F. Ordinance 00-19, Of the City Council of Homer, Alaska Accepting and Appropriating a Senior Employment Program Grant Award from the State of Alaska Department of Administration in the Amount of $8,116.00 for the Library and Authorizing the City Manager to Execute the Appropriate Documents. Library. City Clerk. (First Reading 07/31/00, Public Hearing 08/14/00, Second Reading 08/14/00.)

Memorandum from Library Director attached as backup.

Fiscal Note: Grant Revenue to accts: 100.5103 and 5104.147.

CUE/WELLES - MOVED TO ADOPT ORDINANCE 00-19 BY READING OF TITLE FOR FIRST

READING AND INTRODUCTION.

Councilmember Kranich stated that this is a worthwhile function and had not realized that the City had a branch library. He commented that he looks forward to being able to use this library in the future.

Councilmember Marquardt voiced his hope that this library program would still be in existence when he is ready to use it.

VOTE: YES: FENSKE, WELLES, MARQUARDT, KRANICH, CUE.

Motion carried.

G. Ordinance 00-20, Of the City Council of Homer, Alaska Accepting and Appropriating an Interlibrary Cooperation Grant Award from the Alaska State Library in the Amount of $1,250.00 for the Homer Public Library Travel and Cost Reimbursement and Authorizing the City Manager to Execute the Appropriate Documents. Library. City Clerk. (First Reading 07/31/00, Public Hearing 08/14/00, Second Reading 08/14/00.)

Memorandum from Library Director attached as backup.

Fiscal Note: Grant Revenue to accts: 100.5236 an 5210.146.

WELLES/CUE - MOVED TO ADOPT ORDINANCE 00-20 BY READING OF TITLE FOR FIRST READING AND INTRODUCTION.

Councilmember Kranich remarked on the importance of City Staff to keeping abreast of the current state of affairs in their areas of expertise. In this case it appears that the Library Director will be in touch with her peers on the peninsula and for this small amount of funds it is very worthwhile and can help Homer's library keep in step with the times.

VOTE: YES: CUE, FENSKE, WELLES, MARQUARDT, KRANICH.

Motion carried.

H. Ordinance 00-21, Of the City Council of Homer, Alaska Accepting and Appropriating a Volunteer Fire Assistance Grant/Rural Community Fire Protection Grant, Under Public Law 95-313, from the State Department of Natural Resources in the Amount of $5,000.00, Appropriating the Match of $5,000.00 and Authorizing the City Manager to Execute the Appropriate Documents. Fire Department. City Clerk. (First Reading 07/31/00, Public Hearing 08/14/00, Second Reading 08/14/00.)

Memorandum from HVFD as backup.

Fiscal Note: Grant Revenue and expenditure acct: 151.736 of $5,000 each.

WELLES/MARQUARDT - MOVED TO ADOPT ORDINANCE 00-21 BY READING OF TITLE FOR FIRST READING AND INTRODUCTION.

Councilmember Marquardt noted that this is much needed equipment and a 50/50 grant match. He voiced appreciation to DNR for this grant.

Councilmember Kranich interjected that it is like getting equipment for half price.

VOTE: YES: KRANICH, CUE, FENSKE, WELLES, MARQUARDT.

Motion carried.

Mayor Cushing called for a break at 8:38, reconvening the meeting at 8:51 p.m.

CITY MANAGER' S REPORT

A. City Manager's Report.(ice crane time, public commendation of the police department, port and harbor report, a thank you from UAF to the port director, and a thank you to Jacob Hawkins, Eagle Scout, for his work on weather tight boxes for life preservers for the "Kids Don't Float Program")

B. Records Report from City Clerk

City Manager Drathman read the commendations and emphasized that the Port/Harbor received the maximum score from DEC on the operation of the Ice Plant.

COMMITTEE REPORT

A. Road Standards Committee Synopsis of June 29th.

Councilmember and Committee Chair Marquardt gave a quick overview of the meeting. He pointed out that another committee member needs to be appointed. The next meeting will be sometime mid August.

B. Water and Sewer Standards Committee Synopsis of July 14th.

Councilmember and Committee Chair Fenske stated that the synopsis basically covers the meeting. The committee is waiting on information from staff before conducting another meeting, which should be before August 14th.

City Manager Drathman advised that the Committee should have the preliminary numbers regarding extra territorial services by the end of the week.

PENDING BUSINESS

NEW BUSINESS

A. Memorandum 00-43, from Mayor, Re: City Manager Contract and Evaluation.

Recommendation: Acknowledge the evaluation.

Fiscal Note: Should Council amend the above recommendation to include a salary increase an Ordinance would have to be adopted to make the budget amendment.

FENSKE/WELLES - MOVED TO ADOPT THE RECOMMENDATIONS OF MEMORANDUM 00-43.

Councilmember Fenske stated that he is really pleased at how much effort the City Manager has put into his job this year and that from the evaluation it appears that the other Councilmembers have viewed his work pretty much the same.

FENSKE/WELLES - MOVED TO AMEND HIS SALARY AND CHANGE THE TOTAL LEAVE TIME SO IT WILL GO TO STEP 6. FOR 10.77 HOURS PER PAY PERIOD; A CAR ALLOWANCE OF $50 PER MONTH, $500 A MONTH IN A 401A, FOR A SALARY INCREASE FROM $72,000 TO $78,600 AND AN INSURANCE RIDER ON HIS VEHICLE TO INDEMNIFY THE CITY.

Council discussed the anniversary date.

CHANGES BE RETROACTIVE TO JUNE 1ST.

VOTE: Unanimous consent.

It was noted that before any monetary change is final it must go through the Ordinance, budget amendment, process with a public hearing and second reading. The ordinance would come to the Council at the next meeting. The salary and benefit comparison was mentioned on page 200 of the packet. The following salaries of the peninsula City Managers were noted: Kenai - $90,000, Seward - $80,765, Soldotna - $85,000. The salary differences were commented on, as was population and parity between professions. The manager was thanked for the good job he is doing and the many hours he works was noted.

Maximum leave hour accrual was discussed. ⁽²⁾

VOTE:(amended primary amendment 1.) YES: WELLES, MARQUARDT, KRANICH, CUE, FENSKE.

Motion carried.

FENSKE/CUE - MOVED TO AMEND THAT THIS BE FORWARDED THROUGH THE ORDINANCE PROCESS FOR HEARING AND REVIEW OF THE PUBLIC.

The Ordinance process is for the monetary amendments only.

VOTE:(secondary amendment) YES: CUE, FENSKE, WELLES, MARQUARDT, KRANICH.

Appreciation was expressed to City Manager Drathman for doing an outstanding job for the City.

Motion carried.

Contract start date and actual date of employment were discussed.

WELLES/CUE - MOVED TO AMEND THAT THE NEW CONTRACT COMMENCE ON DATE JUNE 7TH OF 2000.

Mr. Welles stated that the intent is for the term to be effective June 7, 2000.

There was agreement that the June 7th date is noted as the anniversary date per this motion.

The contract will not be signed until the Ordinance process of this is completed.

VOTE:( primary amendment 2.) YES: KRANICH, CUE, FENSKE, WELLES, MARQUARDT

Motion carried.

VOTE:(main amended motion) YES: MARQUARDT, KRANICH, CUE, FENSKE, WELLES.

Motion carried.

B. Memorandum 00-44, from Mayor, Re: Sewer Holding Tanks and Pumping Service.

Recommendation: Initiate necessary policy, ordinance and plan for the sewer collection services discussed in this memo. Target on-line date for November of this year to enable lot owners to plan for tank installations prior to deep frost or snow.

MARQUARDT/WELLES - MOVED FOR THE APPROVAL OF THE RECOMMENDATIONS OF MEMORANDUM 00-44.

Councilmember Marquardt thanked Mayor Cushing for the work he has already done on this matter contained in Memorandum 00-44. He noted that this would eventually be in Ordinance form and public comment is encouraged.

Mayor Cushing advised that the intent is to bring this to the Council and that the mechanism for doing this is not set in concrete, but the target date is November. He voiced his assumption that the Water and Sewer Standards Committee would take the lead on this. The nine points in his memo will be a part of the policy unless amended by the Council. This would entail a lot of administrative assistance to the Council to develop the policy as well as the costs. This is the start of the process. The ordinance part recognizes the costs and the procedures for a sewer collection out of holding tanks. This sewer collection out of holding tanks could be converted to STEP systems, or systems that could eventually drain into existing hard lines/sewer lines.

The nine points are:

1) Holding tanks are designed to be pumped by state of the art methods and also be designed to be converted to the septic tank portions of a STEP sewer system.

2) A series of dump stations be provided at key points of the existing system of sewer mains to reduce truck travel time. These dump stations may need surge tanks to control flow and will have to be sited to be non-obtrusive to existing neighborhoods. These may need to be phased in as funds allow, over time, with all immediate trucking going directly to the Sewer Treatment Plant.

3) This service should be for existing lots and not be a mechanism to further subdivide lots that are, A) too remote to tie into existing sewer mains or, B)in areas unsuitable for on-site septics.

4) A policy determining when an area has a sufficient number of holding tanks to warrant conversion to STEP or other collection system, a method of predetermining acceptance of a future LID as a condition of having this holding tank service, and financing considerations for future LIDs.

5) A target cost of $.05 or less per gallon for the service.

6) Monthly quantity maximums.

7) Bidding to private sector for actual truck collection services can be a possibility, however, the City should be prepared to provide this service should the trucking aspect not be feasible to the private sector. The City should proceed with grants or in house funding mechanisms for the dump stations and a pump truck.

8) Individual holding tank installations are financed by the owner, with approval based on Public Works criteria.

9) Moratorium on application for non-essential grants for the water system that would compete with grants for this project. Non-essential grants for this case being defined as any grant that is primarily necessary to keep the water system tuned to meet the demands of the water system's greatest growth area that specifically being water that is being delivered outside the City.

The nine points were discussed especially items 3, 5 and 9. There are currently at least six holding tanks in town and about fifty lots that would qualify.

FENSKE/CUE - MOVED TO AMEND TO ADD ITEM 10. THIS SERVICE BE AVAILABLE TO CITY LOTS FOR THE PERIODIC PUMPING OF SEPTIC TANKS.

This would address those who already have septic tanks.

Public Works Director Meyer responded to Council inquiry regarding what improvements or changes would need to be made to the sewer system. He stated that there is a difference in a tank pumped every two years and a holding tank's contents that more closely resembles raw sewage. Right now there is no septage pumpage introduced to the system. He voiced his understanding that the plant was originally designed to have septic tanks discharged very close to the Sewer Treatment Plant and that this did not work out that way. Public Works has identified some areas on the east or west trunk line for interceptor sewage away from the Sewer Treatment Plant. He pointed out that dump stations are more than just a manhole. The septic dumpage procedure must be done in a sanitary way with some wash down capabilities and in most cases some kind of aesthetic buffering. Public Works Director Meyer stated that if done correctly dumping into the system should not have any negative impact. He advised that as far as he can tell the Sewer Treatment Plant was originally designed with the capacity to accept pumpage from beyond the City limits. The treatment plant has the capacity and it is a matter of figuring out a way to introduce that septage pumpage into the system. This is done all over the country without any negative impacts to the collection system or the treatment system.

Mayor Cushing pointed out that this recommendation is to initiate the ordinance and policy. What may come back is that the system cannot handle the sludge from septic tanks immediately. Some modifications may be necessary before this service is finalized. The intent is to work toward this end, although desired, it may not be ready as early as November. Mayor Cushing emphasized that this proposal is to take care of the folks inside the City. In response to the Council, Mayor Cushing commented the following:

1. It is possible that a commercial pumper could dump into the City system pumpage from City lots.

2. DEC determines if an on site system is required. DEC has been reluctant to allow holding tanks, but if this pumping service is available and the City is backing it then DEC will clear out of the way same as they do with the water system.

Clearly the point is to take care of the City residents. A mapping could be done by Public Works similar to the wetlands mapping. DEC would probably accept a list of lots preapproved for holding tanks based on Public Works analysis. Commercial pumping is 11 cents a gallon right now.

The following items were commented on by the Mayor, Council and staff: There are three trucks hauling approximately 16 million gallons of water. The 5 cents is a target number only. Accurate numbers and true costs are requested. There is no intent that the enterprise fund lose money. The private sector may not be able to capitalize the cost of a truck and provide the service at 5 cents a gallon. The City may simply be able to get the cost of a truck through a grant and not have to capitalize that as part of the rate. The City does have the capacity to fund a lot of the requirements of this process through grants.

City Manager Drathman voiced some concerns regarding impact to the rate structure. Current estimated costs are $121,000 for the truck, a tank and includes $26,000 for a dump station. Annual maintenance and operating costs are estimated at: labor for a half time City employee is $22,500, $8,000 for running the program and $101,250 for the dump fee, at nine cents a gallon to defer the cost of treatment $6,500 and fuel and lube at $24,000, which comes out to $162,250. City Manager Drathman emphasized that these are pre- preliminary numbers.

Mayor Cushing pointed out that the Sewer Treatment Plant is running at 50% capacity, so the start up costs of the Sewer Treatment Plant will not have to be amortized. The private sector is able to get the fresh water out at 3.8 cents a gallon. Common sense says that if the same water is being picked up and hauled less distance, although a hotter commodity, it should not be a significant increase.

VOTE:(primary amendment) YES: MARQUARDT, KRANICH, CUE, FENSKE, WELLES.

Motion carried.

Discussion continued.

FENSKE/ - MOVED TO AMEND ITEM 5. TO STRIKE "OR LESS".

Motion died for lack of a second.

Councilmember Welles stated that real cost is going to come back to the Council. Any equipment or expansion cost is going to be spread system wide. It will go out on deprecation across every user, because it is an expansion of the system. In doing this, which is the information that is pertinent when this comes back to Council, is what type of cost will there be system wide. The target, 5 cents or less, is a great target. This is a great initiative and needs to get rolling.

VOTE:(main amended motion) YES: MARQUARDT, KRANICH, CUE, FENSKE WELLES.

Motion carried.

RESOLUTIONS

COMMENTS OF THE AUDIENCE

There were no audience comments.

COMMENTS OF THE CITY ATTORNEY

City Attorney Tans is on standby should he be needed.

COMMENTS OF THE CITY CLERK

City Clerk Calhoun reported that the candidacy filing period opens tomorrow.

COMMENTS OF THE CITY MANAGER

City Manager Drathman pointed out that every cost the Council has received, including annexation numbers, is true and accurate. There have been thousands of briefs or letters and none of these have successfully challenged one number.

COMMENTS OF THE MAYOR

Mayor Cushing stated that he did not mean, for one iota, to say that the existing petition numbers were not true and accurate costs. These are perceived as being quite ambitious. He voiced his hope that every cost could be defended successfully for the existing boundary. Whether or not the Council wants that boundary is a whole other issue. The City needs to take care of the people inside the City. He reported that the Exxon Valdez Oil Spill Trustee Council is soliciting nominations for the public/citizen advisory group for a local representative to serve a 24 month term from 10/00 to 10/02. He asked for names to be forwarded to him for recommendation to the Council. Mayor Cushing reiterated that there will be a Worksession on Thursday, August 3rd regarding annexation boundaries and other issues. He advised that the USCG SEDGE had a change of command and welcomed back Lt. Commander Charles Cashin III and his wife .

COMMENTS OF THE CITY COUNCIL

Councilmembers Kranich and Welles had no comments.

Councilmember Cue reported on the meetings at the Pratt Museum; Woodard Creek Drainage neighborhood meeting and the Bear in the Basement, McNeil River Bears shown on a big screen TV from the remote camera at McNeil River. She thanked the Animal Shelter and Homer Animal Friends for coming and testifying tonight and voiced her hope that there would a new Animal Shelter in the near future.

Councilmember Fenske commented about picking blueberries in Seldovia in the rain.

Councilmember Marquardt thanked Councilmember Fenske for taking time off from picking blueberries to attend this meeting. He welcomed the rest of the Council back after about a month off, adding that this was a good meeting.

ADJOURNMENT

There being no further business to come before the Council the meeting was adjourned at 10:39 p.m. The next regular meeting is scheduled for Monday, August 14, 2000 at 7:30 p.m. in the Homer City Hall Council Chambers. A worksession is scheduled for Thursday, August 3rd from 3 to 5 p.m. in the Council Chambers for the Mayor and Council to prepare for a formal meeting with the public on annexation.

_____________________________________

MARY L. CALHOUN, CMC, CITY CLERK

Approved: ____________________________

1. City Clerk's note: There are five City lots in the Assessment District on Hazel Avenue.

2. Personnel Regulation 5.2.3. Leave with pay may be accrued and carried over from year to year up to 720 hours.