Session 07-13 a Regular Meeting of the Homer City Council was called to order on June 11, 2007 at 7:01 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:        NOVAK, ROBERTS, SHADLE                                                                                                         (telephonic), STARK, WYTHE (telephonic)

 

                        ABSENT:                               HEIMBUCH (excused)

 

                        STAFF:                                   CITY MANAGER WREDE

                                                                        CITY CLERK JOHNSON

                                                                        FINANCE DIRECTOR HARVILLE

 

Councilmember Heimbuch has requested excusal.

Councilmembers Shadle and Wythe have requested telephonic participation.

 

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 5:22 p.m. Agenda items: 2006 Annual Financial Report, Resolution 07-71 Exchange of Ten Acres of Land Adjoining Karen Hornaday Park for Land Adjacent to the Water Treatment Facility and Regular Meeting Agenda items.

 

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:

 

Pending Business Resolution 07-60(A) Confirming the Assessment Roll, Establishing Dates for Payment of Special Assessments and Establishing Delinquency, Penalty and Interest Provisions for the Ocean Drive Loop Petersen Addition Sewer Assessment District, and Resolution 07-70(A) Confirming the Assessment Roll, Establishing Dates for Payment of Special Assessments and Establishing Delinquency, Penalty and interest Provisions for the Ocean Drive Loop Sewer Assessment District.

 

PUBLIC COMMENTS UPON MATTERS ALREADY ON THE AGENDA

 

Public may comment on any matter on the agenda except: Ordinance 07-22, Amending the FY 2007 Operating Budget by Appropriating $53,000.00 for a Microwave Repeater from ProComm Alaska.

 

Mary Lou Kelsey, city resident, owns parcels in both Ocean Drive Loop improvement districts. They tried not to participate in the LID as they are not developers, nor have the intent to develop. They began to replat their properties in 2004, as they did not need sewer drop to all of them. Today she learned a resolution was passed in 2006 assessing each existing lot when the LID was formed. She had thought assessments would be made on the number of lots at the time the LID was complete. She has one sewer drop to her replatted lot.  

 

Lance Petersen, city resident, is involved in the Ocean Drive Loop LID. He referenced Memorandum 07-99 from Public Works Director Meyer to reach a resolution of assessments. The City Council is stuck with a flawed and inequitable LID process, one set of criteria for forming the LID and another for paying for it.   

 

Steve Smith, city resident and Transportation Advisory Committee member, has a long history of these types of projects from an engineering, survey and construction side. Someone could have six 80-ft. front lots, with no intention to develop, and a group decided to form an LID. You could vacate lot lines and have one lot serviced. Without knowing whether an LID will have the required support, it is an expense to the property owner to vacate lot lines. The construction drawings did not put services to those lots as they understood they would be vacated. It is ridiculous the City would assess for lots that did not receive services. Some consideration needs to be given to people who are forced into an LID. He asked that the whole process be reviewed.   

 

Beth Cumming commented on Resolution 07-71, and urged the Council not to act on the land exchange. The public is not very aware of the 10 acres of land adjacent to the northwest corner of Karen Hornaday Park. The land may have recreational potential for a trail. Mike Gordon was interested in the parcel to provide access to his land. Although she is sure Nancy Hillstrand will be a caring person in terms of land usage, she urged Council to vote the resolution down.

 

RECONSIDERATION

 

None.

 

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 May 29, 2007 Regular       Meeting. City Clerk. Recommend approval.         

 

B.         Ordinance 07-23, Of the City Council of Homer, Alaska Approving a Capital Project and Amending the FY 2007 Operating Budget to Appropriate $106,000.00 for Expansion of the Parking Lot at the Base of the Spit. City Manager. Recommend Introduction and First Reading and conduct Public Hearing and Second Reading on June 25, 2007.

 

            Memorandum 07-98 from Public Works Director as backup.

 

C.        Ordinance 07-24 , Of the City Council of Homer, Alaska Amending the FY 2007 Operating Budget and Appropriating the Change in Fund Balance (Excess Revenues over Expenditures) in Fiscal Year 2006 ($1,025,945) by Retaining $600,000 in the General Fund Reserve and Appropriating $425,945 to the City Hall Depreciation Reserve. Wythe. Recommend Introduction and First Reading and conduct Public Hearing and Second Reading on June 25, 2007.

 

D.        Ordinance 07-25, Of the City Council of Homer, Alaska Accepting and Appropriating a State of Alaska Fiscal Year 2007 Legislative Grant in the Amount of $2 Million for the New Homer City Hall Town Plaza Project and Authorizing the City Manager to Execute the Appropriate Documents. City Manager.  Recommend Introduction and First Reading and conduct Public Hearing and Second Reading on June 25, 2007.

           

E.         Resolution 07-67, Of the City Council of Homer, Alaska Accepting the 2006 Comprehensive Annual Financial Report with Audit and Financial Statements and Acknowledging the Management Letter Submitted by the City’s Independent Auditor, Mikunda, Cottrell & Co. and Authorizing the City Manager to Execute Financial Report. City Manager. Recommend adoption.

 

F.         Resolution 07-68, Of the City Council of Homer, Alaska Supporting Public Education and other Efforts to Discourage the Taking or Removal of Native Plants and Intertidal Aquatic Marine Plants in Kachemak Bay Unless these Plants have a Harvest that is Designated by State Laws.  Mayor. Recommend adoption.

 

G.        Resolution 07-69, Extending the Contract with Mikunda, Cottrell & Co. for Fiscal Year 2006 and 2007 and Authorizing the City Manager to Execute the Appropriate Documents. City Clerk. Recommend adoption.

 

H.        Memorandum 07-96 Through City Manager Re: Capital Improvement Project Schedule. Recommend approval.

 

I.                    Memorandum 07-97 from Deputy City Clerk Re: Travel Authorization for Councilmember Roberts to Attend the ICLEI-Local Governments for Sustainability Saving Energy and Saving Money Conference in Fayetteville, Arkansas July 10-13, 2007. Recommend approval.

 

NOVAK/ROBERTS – MOVED FOR THE ADOPTION OF THE RECOMMENDATIONS OF THE CONSENT AGENDA AS READ.

 

There was no discussion.

 

VOTE: YES. NON OBJECTION. UNANIMOUS CONSENT.

 

Motion carried.

                       

VISITORS

 

  1. John Bost, Mikunda, Cottrell & Co. Re: 2006 Comprehensive Annual Financial Report with Audit and Financial Statements (10 Minutes)

 

John Bost of Mikunda, Cottrell & Co. reported the City had a financially solid year in 2006, most funds doing better than predicted on the budget.

Major transactions or events during 2006:

 

*    Library completion - $3.7M spent in 2006 financed mainly by grants, local contributions and loan of $2.1M from USDA.

*    Drinking water and clean water – $2.6M in loans from State DEC for Ocean Drive Loop, East End Road LID’s and water storage tank.

*    Litigation settlements received.

*    General fund increased balance by $1,026,000; ending total fund balance $3.9M.

*    Total sales tax – 6.5% (2% to KPB and ¾ of 1% restricted to water/sewer projects, ¾ of 1% restricted to road projects, 3% goes to the general fund) general fund share $4.5M.

*    Property tax revenue - $2,383,000 ($2.1M 2005).

*    Water/Sewer fund and port fund solid.

           

ANNOUNCEMENTS/PRESENTATIONS/BOROUGH    REPORT/COMMISSION REPORTS       

 

A.        Prince William Sound Regional Citizen’s Advisory Council Report

 

B.         Emergency Food and Shelter National Board Program

 

PUBLIC HEARING(S)

 

A.        Ordinance 07-22, Of the City Council of Homer, Alaska Amending the FY 2007 Operating Budget by Appropriating $53,000.00 for a Microwave Repeater, Authorizing a Sole Source Procurement Contract with ProComm Alaska, and Authorizing the City Manager to Execute the Appropriate Documents. City Manager. Recommend Introduction and First Reading and conduct Public Hearing and Second Reading on June 11, 2007.

 

There was no public testimony.

 

NOVAK/ROBERTS – MOVED FOR THE ADOPTION OF ORDINANCE 07-22 FOR SECOND AND FINAL READING BY READING OF TITLE ONLY.

 

There was no discussion.

 

VOTE: YES. NON OBJECTION. UNANIMOUS CONSENT.

 

Motion carried.

 

ORDINANCE(S)

 

None.

 

CITY MANAGER’S REPORT

 

A.                 City Manager’s Report 

 

1.      Port and Harbor Lease Notes: Discussions are on-going with Hughes Pellets. Not much progress was made in the past two weeks because Mr. Fitzgerald has been out of State. Hughes Pellets is presently taking another look at the amount of infrastructure they may need at the site and this could have an impact on the terms of the lease. Harbor Leasing has been offered a short term lease to cover its continued occupancy of City lots and ROW while we work on a long term lease. 

2.      Cosmopolitan Project: Tadd Owens,( tad.owens@pxd.com)  Director of Government and Public Affairs for Pioneer Natural Resources Alaska Inc. called this week to give us an update on the Cosmopolitan Project. The Cosmopolitan Project is an oil drilling operation located just north of Anchor Point near Stiriski. Pioneer will drill from shore using directional drilling technology. Tadd recently visited with myself and the Mayor to familiarize us with the project. The Mayor invited him to come to a City Council meeting when the time was right and he readily agreed to do so. Tadd said that we would see increased activity at the site this summer. Preparation work will be taking place at the pad and we can expect to see heavy equipment moving about. He said the drilling rig will arrive in mid- July and may come in through the Port of Homer. He said the rig is modular and will arrive in pieces so it may not be recognizable as a drilling rig. It is anticipated that drilling will commence in August. 

3.      Coast Guard Dolphin: The public comment period has closed and we are waiting to hear whether the Corps will issue a permit for the dolphin. If the Coast Guard is able to obtain a permit, the final word will rest with the City Council. The Dolphin would rest upon City owned tidelands and an amendment to the existing lease would be required. Lease amendments must be approved by the Council.

4.      Personnel Matters: The Council will recall that last year we discussed ways to make the City more competitive in terms of attracting and retaining employees. We discussed COLAs, compacting the wage scale, and other measures. A series of recommendations was included in the parity study and attached documents. The Council provided a COLA last year and recently adopted a new sick leave policy. However, the issue of compacting the wage scale and other recommendation were set aside for another time. During the Budget discussions, the Council received a memo signed by the Manager and all of the Department Heads requesting a COLA and stating that we would be back at mid-year to discuss this again. I wanted to remind you of that and let you know that it is my intention to bring back the COLA issue and a new proposed wage scale at the meeting in July. I also intend to recommend that the Council elevate the Clerk’s Office, the Planning Office, and the Library to Department Status.

5.      Alaska Marine Highway / Proposed Warehouse: The discussions here are on-going. I recently made an offer to AMHS that I believe will be very attractive if the place the warehouse on Lot 48. I received a good response with some follow-up questions. I hope we can discuss this a little because this will need Council involvement and approval.

6.      Lease Policies Amendments: Several people have asked me what the plan is for the proposed lease policy amendments. I am planning to bring them back to the Council for debate and possible action at the meeting on June 25. Additional recommended amendments from the lease Committee will be included.

7.      Intersection of Sterling Highway and Main St: The Council will recall that the City and the State have developed a CIP project called the Homer Intersections Improvement Project.  The City recently inquired about the status of that project and the DOT/PF Regional office told us that they did not have the funding at this time to work on the entire project. DOT/PF stated that they would have to work on this one intersection at a time and that its focus initially would be on the Pioneer / Heath and Lake Street intersections. The City understands the logic for this but intends to push for immediate attention to the intersection of Main St. and the Sterling Highway. The Homer Police Department believes that this is the most dangerous intersection in town and generates the most accidents and near misses.

8.      Police Department and ALMAR System: As the Council knows from our recent discussion about the microwave transmitter on the Spit, the Police and Fire Departments are gradually moving toward joining the Feds, the State, and other municipalities on the new ALMAR communication system. The Police Chiefs in Kenai, Seward, and Homer recently decided to pool resources and hire and expert consult (Bill Doolittle) to advise the communities on the specific steps they need to take to be ready to join the system. Homer’s share is $2,000 which we were able to find within the existing budget.

9.      Lease Revenues on Spit: Several years ago, before my time, a decision was made to allocate all lease revenues obtained from leases on Fish Dock Road and along the Spit Road to the General Fund rather than the Port and Harbor Fund. To the best of my knowledge, this was done administratively and for a variety of reasons which I will not get into here. We are currently reviewing what the fiscal implications to both funds would be of transferring these revenues back to Port and Harbor. I think that in principle, that is the right thing to do. The Port and Harbor Director has agreed that his staff would assume a little more responsibility for monitoring of activities on leased lands in exchange.

 

Council may still ask questions or have discussion about the audit. Alternatives for the Coast Guard dolphin were discussed with the commander of the USS Hickory. If the Coast Guard gets the permit from the COE they would still need a permit from the City and amendment to their existing lease. It would be in the best interest of the City for the Alaska Marine Highway System to construct their warehouse on Lot 48 on the Spit. A recommendation that the lot be rent free will come before the Council. Lot 45A has competing uses. The City has a lease with the Coast Guard with 25 parking spaces for their staff; a land use agreement with AMHS offers priority use of the dock when ships come in and use of the staging area. With the Kennicott coming to Homer more often and the Tustumena home port here, there are more problems with staging. A warehouse in the middle would not be a good situation. It would rectify the situation to construct the AMHS warehouse on Lot 48.

 

A new City Hall appraisal will follow a purchase agreement with the university and city, as code states the appraisal may not be any more than six months old. Talks are in progress with the surveyor for a preliminary plat on the old library property.

 

A recommendation for an RFP and the type of construction management for the new City Hall will be on the next agenda. COLA, wage scale compression and elevation of three divisions to departments will be considered in July.

 

A proposal that lease revenues on Fish Dock Road and the Spit go to Port and Harbor fund is to be made. The General Fund is in better shape and Port and Harbor staff is willing to step up to monitoring and property management issues there. A short term lease for the Manley building is in negotiation.       

 

B.         Bid Report      

 

C.        Games Report             

D.        Question of the Week

 

COMMITTEE REPORT

           

A.        Comprehensive Plan Community Advisory Committee

            (June 26, 2007 6-8 p.m.

 

B.         Global Warming Task Force

            (June 21, 2007 6 p.m.)

 

C.        Public Arts Committee

            (June 21, 2007 11 a.m.)

 

D.        Transportation Advisory Committee

            (June 19, 2007 5:30 p.m.)

 

E.         City Hall - Town Plaza Review Committee

            (June 14 & 21, 2007 4-6 p.m.)

 

PENDING BUSINESS

A.        Ordinance 06-59, Of The City Council Of Homer, Alaska, Amending Homer City       Code Section 9.04.046, Real And Personal Property Tax -- Exemption, To        Provide For The First $20,000.00 Of Assessed Valuation On Owner-Occupied         Permanent Residential Property To Be Exempt From City Real Property Tax.   (Previously Ord. 05-42). Council. Re-Introduction 10/09/06, Public Hearing       10/23/06, Second Reading 11/27/06, Postponed to first meeting in June (June 11,          2007)

Motion on the floor from November 27, 2006:

WYTHE/NOVAK - SO MOVED FOR THE ADOPTION OF ORDINANCE 06-59 FOR SECOND AND FINAL READING BY READING OF TITLE ONLY.

Councilmember Novak noted the ordinance was introduced a year ago, with a lot of discussions about property tax since then. The property tax exemption gives a break to homeowners within the City. The total expense is $75,000.

VOTE: YES. NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

Councilmember Stark noted the exemption will be effective in 2008. The $20,000 exemption will be added to the senior citizen property tax exemptions.

B.         Resolution 07-60(A), Of the Homer City Council Confirming the Assessment Roll, Establishing Dates for Payment of Special Assessments and Establishing Delinquency, Penalty and Interest Provision for the Ocean Drive Loop Petersen Addition Sewer Assessment District. City Clerk. Recommend adoption.

Memorandum 07-99 from Public Works Director Meyer as backup.

 

NOVAK/ROBERTS – MOVED FOR THE ADOPTION OF RESOLUTION 07-60(A) BY READING OF TITLE ONLY.

 

The Ocean Drive Loop sewer assessment districts have been ongoing with adjustments and configuration on properties. They have been massaged in an effort to serve everyone in the area. A further adjustment by one property owner to lower the difference below 15% has been made. Council can look at code changes in the future.

 

City Manager Wrede clarified the assessments Mary Lou Kelsey spoke about. Ocean Drive Loop Cranberry Point (Oscar Munson Sub. No. 23, Lot 9-A) was reconfigured. Lance Petersen recognized the plat changed after the code change in 2006. It affected a different LID from where Mr. Petersen lives, thus he agreed to take on two additional assessments. There is only one stub out in that lot. There was a lot of replatting, but people knew what was going on. Re-platting must occur prior to the preliminary assessment role.

 

In the Petersen Addition LID there were two separate platting actions. Everyone combined their lots with the exception of the two lots where a reduction was recommended. Stubs were placed based on the platting anticipated at the time. There was a question if the new law should be applied retroactively. A different approach was taken in fairness to all property owners.

 

Councilmember Novak commented that any assessed lot should have a sewer drop and he hopes the City would discuss putting a stub in for Ms. Kelsey.

 

Councilmember Stark, senior member of the Council, noted amendments and changes to the ordinance every couple of years. No matter how it is written, people find out a way to pay the least amount of money. It is amazing the subdivisions, re-subdivisions and consolidations that happen. Council agonized over the years, when enacted latest version felt were doing best could at that time.

 

VOTE: YES. NON OBJECTION. UNANIMOUS CONSENT.

 

Motion carried.

 

C.        Resolution 07-70(A), Of the Homer City Council Confirming the Assessment Roll, Establishing Dates for Payment of Special Assessments, and Establishing Delinquency, Penalty and Interest Provisions for the Ocean Drive Loop Sewer Assessment District. City Clerk. Recommend adoption.

 

Memorandum 07-99 from Public Works Director Meyer as backup.

 

ROBERTS/NOVAK – MOVED TO ADOPT RESOLUTION 07-70(A) BY READING OF TITLE ONLY.

 

There was no discussion.

 

VOTE: YES. NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

 

NEW BUSINESS

 

None.

 

RESOLUTIONS

 

A.        Resolution 07-71, Of the City Council of Homer, Alaska Authorizing an Exchange of 10 acres of City Land adjoining Karen Hornaday Park KPB Tax ID# 175-040-03 for 10 acres of Land Immediately Adjacent to the Water Treatment Facility KPB Tax ID# 173-053-08 and Authorizing the City Manager to Execute the Appropriate Documents. City Manager. Recommend Adoption.

 

NOVAK/ROBERTS - MOVED FOR THE ADOPTION OF RESOLUTION 07-71 BY READING OF TITLE ONLY.

 

Councilmember Stark commented there is a slim chance the $1M grant for the water treatment plant may be vetoed by the Governor. Giving up the ten acres to the northwest of Karen Hornaday Park is not the best agreement, but we have an agreement to get the land needed to build the water treatment plant. When we are ready to build the plant we will wish we had gone ahead with the exchange to obtain the land. It is the best proposal considering all things.

 

Councilmember Novak noted the proposal of the property adjacent to the water treatment has good points. From a financial point of view it is not the best financial agreement for the City. There may be other means to obtain property next to the water treatment plant.

 

VOTE: NO. ROBERTS, WYTHE, NOVAK

 

VOTE: YES. SHADLE, STARK

 

Motion failed.

 

COMMENTS OF THE AUDIENCE

 

There were no public comments.

 

COMMENTS OF THE CITY ATTORNEY

 

City Attorney Tans was not present.

 

COMMENTS OF THE CITY CLERK

 

City Clerk Johnson had no comments.

 

 

 

 

COMMENTS OF THE CITY MANAGER

 

City Manager Wrede reported on the City Hall – Town Plaza Review Committee. A site visit is scheduled for Thursday, June 14th at 4 p.m. The committee has been meeting every Thursday from 4 p.m. to 6 p.m. The public is encouraged to attend. An open house was held with good discussion about lessons learned from the library construction. The committee is on schedule and will have recommendations to Council soon.

 

COMMENTS OF THE MAYOR

 

Mayor Hornaday commented the Homer High School softball team made a valiant effort to continue on as State champions. They led the whole game, although the last inning did not go well. They came in second place. The Homer soccer team and boys’ baseball team were represented at the State tournament too.

 

COMMENTS OF THE CITY COUNCIL

 

Mayor Pro Tempore Novak appreciates the people coming in on a beautiful day. Their comments help Council make decisions and stay informed. He encouraged everyone to enjoy the weather and will see everyone again in two weeks.

 

Councilmember Wythe thanked the Council and citizens of Homer for their indulgence in working with her travel requirements. It is a beautiful day in Denver at 95 degrees.

 

Councilmember Stark noted it will be raining when she gets back; that is the forecast.

 

Councilmembers Shadle and Roberts had no comments.

 

ADJOURNMENT

 

There being no further business to come before the Council, Mayor Hornaday adjourned the meeting at 7:59 p.m. The next Regular Meeting is scheduled for Monday, June 25, 2007 at 7 p.m. and the next Committee of the Whole is scheduled for Monday, June 25, 2007 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.

 

 

______________________________

JO JOHNSON, CMC, CITY CLERK

 

Approved: _____________________