Session 04-12, a Regular Meeting of the Homer City Council was called to order at 7:00 p.m. by Mayor Jack Cushing at the Homer City Hall Council Chambers located at 491 E Pioneer Avenue, Homer, Alaska, and opened with the Pledge of Allegiance.

The Council's Committee of the Whole met from 4:05 p.m. to 5:30 p.m. regarding Road Standards Committee - Mission and composition., Regular Agenda items specifically those items relating to implementation of the Long Range Fiscal Plan, including the DRAFT Ordinance regarding a possible Sales Tax increase and possible property tax decrease and Ordinance 04-30, Approving and Submitting a Loan and Long Term Debt Authorization for the Purpose of Financing and Constructing the New Homer Public Library to the Voters for Voter Approval at the October 5, 2004 Municipal Election.

PRESENT: COUNCILMEMBERS: BECK, FENSKE, LADD, NOVAK, STARK, YOURKOWSKI.

STAFF: CITY MANAGER WREDE

CITY CLERK CALHOUN

ACCOUNTING SUPERVISOR VAUGHN

CITY PLANNER MCKIBBEN

LIBRARY DIRECTOR HILL

PUBLIC WORKS DIRECTOR MEYER

SPECIAL PROJECTS COORDINATOR HOLEN

Department Heads may be called upon from time to time to participate via teleconference.

AGENDA APPROVAL

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

The agenda was approved by consensus of the Council with the following additions and notations: Correction on Ordinance 04-27 and 04-28, both Revenue and Expenditure Accounts should read 151-722; Additional Copy of Ordinance 04-26, some packets had only page 1; Submittal of the Manager's Report; Road Standards Committee Synopsis of June 1, 2004, late distribution on Friday; and Substitute Resolution 04-56, Of the City Council Authorizing the Correction of the Drainage Problem at Karen Hornaday Hillside Park, Northside of the Ballfields from Councilmember Fenske.

Mayor Cushing stated that the Council had, during the Committee of the Whole, requested that Resolution 04-48 be pulled off of the agenda. ⁽¹⁾

There were no objections from the Council.

PUBLIC COMMENTS UPON MATTERS ALREADY ON THE AGENDA

Public Comments upon any matter on the agenda except Visitors. Auditor and Dowl Engineers and

Public Hearing Item, Ordinance 04-26, Appropriating Funds in the Amount of $180,000.00 to Replace Old PVC Water Pipe with HDPE Pipe along East End Road and Authorizing the City Manager to Execute the Appropriate Documents.

John Velsko, City resident, commented on Ordinance 04-30, library loan and funding, stated that he sat in on the Committee of the Whole and voiced agreement with Councilmember Yourkowski regarding a dedicated sales tax increase that this is not the approach or mechanism to fund the new Homer Library. He pointed out that while the sales tax does catch revenues from folks outside the City it places an unfair burden on the City resident. Homer households cannot escape the sales tax on their electricity bills, water and sewer bills, heating bills, phone bills, internet connections, etcetera. The household outside the City limits completely escapes that tax burden, it is not fair and this logic is faulty. He shared his estimates for the average City household, including his, reporting that it costs $200 to $300 in added sales tax for basic needs, equivalent to a two or three mill property tax. He encouraged the Council to at least lower the property tax if they are going to increase the sales tax. He voiced agreement with Councilmembers Yourkowski and Ladd that the formation of a Library Service Area is a more suitable long range funding source, agreed that this is a harder road to go, inserting that this is why the Council is elected - to do the harder stuff not the easier stuff like raising taxes. He suggested, at least, putting the idea of a library service area to the public vote and if Homer's friends and neighbors shoot it down, at least Homer knows where it stands, probably and unfortunately alone. He told the Council that Homer needs a new library and that he really supports a new library. He encouraged the Council to pursue the long term solution to financing, not just the loan on construction, but finding a way to pay for operations and maintenance and depreciation. He urged the Council to think outside the box, interjecting that a sales tax increase may be needed next year just to keep on the City lights. He shared his surprise when the Council said they were going to vote in a speed limit of 25 mph, a couple of the Council went out and drove it and then changed their minds. He voiced his thought that the Council drive it before voting to lower it.

Michael Hawfield, member of the Library Advisory Board and Capital Campaign Committee and Friend of the Library, encouraged the Council to adopt Ordinance 04-30 to approve the adoption of the long term debt that it will take to complete the Library. He emphasized that a great deal of work has been done by many volunteers to get this far, that more than $2 million has been raised, and that there is an expectation of some outstanding grants contingent on the degree of City support. He shared the encouragement in the responses to Homer's applications received by grantors, who look to Homer as a place to invest money to bring about a new library. He acknowledged that it is not clear how to repay this loan, that there are a lot of scenarios and it is hoped that all the friends, neighbors and visitors will be a part of that process of repaying this loan and for establishing a process whereby operating and maintenance costs are met. He reported that the volunteer committees recognize that these are difficult issues and that they add a burden to all, in a regional sense. He asserted that the goal is worthwhile, a new library is needed, and that it is needed desperately. It is known from surveys, formal and informal, that there is overwhelming support for creating a new Library. He stressed that, at the end of two years of private fund raising, with citizens and businesses making substantial donations, they cannot let it go, that it has to move forward, and has to be made to happen, because the community health depends on it. He urged the Council to take this next step, to adopt this long term debt and encumber "ourselves" to get the library built. He thanked the Council.

Mayor Cushing cautioned Mr. Hawfield regarding any form of campaigning if this becomes a ballot issue, and that he be sure to check on processes/procedures.

Lou Stewart, City resident, addressed the Council regarding Resolution 04-53, creating the Woodard Creek Park, a great move toward the foundation of Woodard Creek Watershed awareness. He voiced his hope this is the beginning of identifying and acquiring key pieces of properties for parks and trails around Homer. He encouraged the Council to take a proactive stance in developing the City's recreational potentials. He pointed out that with this particular item it does not cost anything, right now. He commented on Resolution 04-56, drainage problem at Karen Hornaday Hillside Park, thanking Jim Hornaday for the $300 donation, as seed money, toward the drainage solution work and Councilmember Fenske for officiating the action on this Resolution. He voiced hope that this would move forward with this particular Resolution and that he would like to see the Council move quickly in response. He said that he feels that if it is a matter of money that, since this is a great community, there will be a lot of support, if the public is made aware, such as volunteers soliciting sponsors to make this a wonderful improvement for the entire community, not to mention cleaning up existing mess.

Ray Kranich, resident, requested that Item I. be pulled off of the Consent Agenda and placed under new business, the veto of the vacation of the 33 foot right of way on Kachemak Drive and voiced concern with enacting this veto and keeping a 15 foot easement, which would create a situation wherein both property owners, on both sides, would put up fences to protect their privacy from people using the easement, right under the property owners' windows. He commented on the practicality of using a 15 foot easement for drainage and pedestrian access that it would require piping the water down over the bluff to the beach in order to have a set of steps built on top of it otherwise the water running out the drainage easement is going to wash away the ground from underneath the steps, being only 15 feet wide. He pointed out that without the piping the water would wash away the property on either side of the 15 foot swath and the City would be paying some big money. He recommended, that if the Council wants to do something in that area, then leave the 33 feet, to have a little bit of corridor room on either side. He encouraged the Council to look at this very closely, which they cannot do by leaving it on the Consent Agenda. He commented on Ordinance 04-30, the loan for the library, that, while he encourages wholeheartedly the construction of the library, he feels the funding source for that loan needs to be positively identified before going into the loan situation. He stressed that he, personally, would not jump out to take on a big loan before knowing how he was going to pay for it, which is in essence what the Council is going to be doing with Ordinance 04-30. He noted that the Council just recently took $450,000 out of the reserve funds to start construction or go ahead on the Animal Shelter. He stated that he can, conceivably see, if the Council goes into this without identifying a long term funding source, the Council will be building in where these payments will come out of the reserve, which is already lower than what the auditors recommend. He commented on the Town Center Development Committee Resolution, that he was glad to see that they recommended some need for a larger commercial anchor, most likely larger than the current size limits, that he appreciates the position of Councilmembers Beck and Novak in acknowledging that as well as past Planning Commission Chair, Bill Smith. He concluded by commenting on Resolution 04-57, Non Motorized Transportation and Trails Plan, that this Resolution would have to be considered out of order since this type of amendment to the Comprehensive Plan can only be done by Ordinance, which is very, very specific in the City Code and that this should be stricken from the agenda.

Mayor Cushing advised that this was identified this afternoon and will be identified as just starting the process.

Diane Martin, representing clients Edna and Willis Kahn, addressed the Council regarding Memorandum 04-57, the vacation of the 33 foot right of way, and asked that this be taken off of the Consent Agenda and offered up for more discussion. She provided additional information and updated survey information from Kenton Bloom, that was not done in time to be included with the rest of the information she provided for the Council's packet. Using the updated survey information she explained the differences in the usable acreage, with set backs, current right of way and what it means if this is reduced to a 15 foot easement. The acreage on the west changes from 1.09 to .95 acre and on the east side from .79 to .63 acres before the 33 foot right of way. She emphasized that with the bluff eroding as it is, it makes for a pretty small area for development for a potential buyer. This equates to 16,391 square feet for the east side and 25,973 square feet on the west side. She encouraged the Council to uphold the Borough Planning Commission decision to vacate the 33 foot right of way from both parcels and to allow for the 15 foot drainage easement that serves both lots at this time. She responded to Council inquiry regarding the right of way specifics, elucidating the history of the right of way, having been set by US Patent in the 1940s, as so many were at every quarter section line. She further advised, this is in the Council's packet, that the Kahns purchased the property in 1979, that they applied to get this vacated by the Borough and were under the impression since, 1980, that this had been vacated until the recent title search.

RECONSIDERATION

None scheduled.

CONSENT AGENDA

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

Councilmember Ladd asked for Item I. to be taken off of the Consent Agenda.

Councilmember Stark asked for Item H. to be taken off of the Consent Agenda.

Councilmember Fenske asked for Items F. and G. to be taken off of the Consent Agenda.

A. Homer City Council unapproved meeting minutes of May 25, 2004 Regular Meeting. City Clerk. Recommend approval.

B. Ordinance 04-27, Of the City Council of Homer, Alaska, Accepting and Appropriating a Grant of $75,000.00 from the Kresge Foundation for Planning Purposes for the Homer New Public Library Project and Authorizing the City Manager to Execute the Appropriate Documents. City Manager. Fiscal Note: Revenue and Expenditure Acct. 151-722, $75,000.00 to the Homer New Public Library Project. Recommend introduction and set public hearing and second reading for June 28, 2004.

C. Ordinance 04-28, Of the City Council of Homer, Alaska, Accepting and Appropriating a Matching Grant of, up to, $400,000.00 from the National Endowment for the Humanities (NEH) for the Homer New Public Library Project and Authorizing the City Manager to Execute the Appropriate Documents. City Manager. Fiscal Note: Revenue and Expenditure Acct. 151-722, $400,000.00 to the Homer New Public Library Project. Recommend introduction and set public hearing and second reading for June 28, 2004.

D. Ordinance 04-29, Of the City Council of Homer, Alaska Accepting and Appropriating a State 2004 Homeland Security Grant of $165,146.00 for the Purchase of Equipment and Authorizing the Chief of Police and Mayor to Execute the Appropriate Documents. City Manager. HPD. Fiscal Note: Revenue and Expenditure Acct. 151-784 State Homeland Security Grant Program (SHSGP)$165,146.00. Recommend introduction and set public hearing and second reading for June 28, 2004.

Memorandum 04-83 from Chief of Police as backup.

E. Resolution 04-48, Of the City Council Changing the Name of the Road Standards Committee to Transportation Committee. Road Standards Committee. City Clerk. Recommend adoption.

Road Standards Committee June 1, 2004 meeting excerpt.

Removed from the agenda under Agenda Approval.

F. Resolution 04-53, Of the City Council Designating Lot 11-B of Bunnell's Subdivision No. 17 as Woodard Creek Park. Requested by Parks and Recreation Commission. City Manager. Recommend adoption.

Memorandum04-89, from Parks and Recreation Commission to City Manager as backup.

Placed under Resolutions as Item C.

G. Resolution 04-54, Of the City Council Amending Resolution 03-143(S)(A), to Establish the Interest Rate for the Ocean Drive Loop Bluff Erosion Control Assessment District at Six and One Half Percent (6.5%). Finance. City Manager. Recommend adoption.

Memorandum 04-86, from City Manager as backup.

Placed under Resolutions as Item D.

H. Resolution 04-55, Of the City Council Affirming the Water and Sewer (spaghetti) Line Installation Policy in Homer City Code Chapters 13.24 and 13.28. City Manager. Public Works. Recommend adoption.

Memorandum 04-87 from Public Works Director as backup.

Placed under Resolutions as Item E.

I. Memorandum 04-84, from City Clerk, Re: Vacation of a 33 Foot Right-of-Way Lying East and West of Kachemak Drive, Government Lot 31 and Associated Utility Easements as Reserved in Patent Number 1173705; within Section 14, Township 6 South, Range 13 West, Seward Meridian, Alaska; City of Homer and Kenai Peninsula Borough; KPB File 2004-125; KPBPC Resolution 2004-24. Recommend veto and uphold the Homer Advisory Planning Commission's decision.

Placed under New Business as Item A.

J. Memorandum 04-88, from City Manager, Re: Capital Improvement Planning Process and Legislative Request Development Schedule. Recommend approval.

K. Memorandum 04-90, from Mayor, Re: Appointment of Hannah Harrison as the Student Representative on the Homer Library Advisory Board. Recommend confirmation.

LADD/NOVAK - MOVED FOR THE ADOPTION AND/OR APPROVAL OF THE RECOMMENDATIONS OF THE CONSENT AGENDA. (excluding items E, F. G. H. and I. )

VOTE: YES: NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

VISITORS

A. John M. Bost, Partner, Mikunda Cottrell and Company, Re: Audit Report.

John M. Bost gave an overview of the audit and mentioned the management letter:

• The Auditors work for the Mayor and Council not the City Manager or Finance Director.

• There were no significant accounting policy changes. 2002 was the implementation of GASB 34 and new audit format.

• No significant or unusual transactions.

• There were 39 Audit Adjustments (AJEs) down considerable from 2002. Most were not large dollar entries, those that were consisted of budgeted transfers and amendments made during the year approved by the Council and grant related adjustments.

• No disagreements with management. All suggestions were agreed to.

• Tests on cash disbursements, cash receipts, payable, wire transfers, journal entries that the City makes through out the year, compliance with grant requirements and agreements. There were no problems found, except on a DEC grant that required that they approve the plans and specs prior to initiation of the project before the grant proceed. The notice to proceed was approved prior to DEC's approval.

• The City has a lot of grants, more than other municipalities.

• Management and analysis is put together by City Manager Wrede and Finance Director Baugh.

• Overall the financial statements reflected a decrease in net assets for 2003.

General Fund decrease of $66,000.00. 2002 was an increase of $373,000.00. Main reason is more money transferred out to other funds. $290,000.00 to the health insurance, sort of a one time catch up sort of thing.

Port Fund lost $522,000.00. 2002 lost $183,000.00. Increase in depreciation due to project completion.

Water and Sewer Fund lost $336,000. 2002 $711,000.00. Transfer in of $265,000.00 to purchase land in the watershed.

• Enterprise funds must have 100% depreciation deducted. No longer any add back. Most of the depreciation is grant funded projects. Not far to expect the City to set rates to cover granted projects.

• GASB 34 is mandatory. Non compliance with GASB 34 results in an adverse opinion, something that Bond holders and Banks look at. One of the reasons for the GASB 34, depreciation, is to make all government - cities, counties and states focus on trying to fund their own property, plant and equipment and not rely so much on grants. The old method of showing all the depreciation and show a net gain or net loss line was better. If one takes a position that there will never be another grant received then the City has to break even. In the year when there are a lot of grants this number could be huge.

• Water and Sewer Fund, restricted assets is $1, 978,000.00 - the sales tax money collected over the years that has yet to be spent on water and sewer projects. The sales tax money is restricted. Revenues are up by $68,000.00. Sales tax is $956,000.00 and in 2001 it was $776,000.00 up $180,000.00. No grants in 2002 so the capital contribution is only $51,000.00.

• Property Tax and Sales Tax are both higher than 2002. Property Tax 2002 - $1,603,317 and 2003 - $1,811,202. Sales Tax 2002 - $4,128,010 and 2003 - $4,462,523.

• Depreciation is up for the port as a result of granted projects. Absent depreciation expenses would only be up about $89,000.00 total. Revenues are up $186,000.00 over last year.

• Fund Balance amount needs.

• Rate for depreciation, no set rate, it is based on the estimated life of the asset. This is a combination of the assets. Auditors don't make recommendations regarding life.

There was a question and answer period with the Council.

Mayor Cushing called for a recess at 8:12 p.m., reconvening the meeting at 8:19 p.m.

B. Dowl Engineers, Kevin Doniere - Non Motorized Transportation and Trails Plan. (Clotho Spinner was not present.)

Kevin Doniere gave the Council a power point presentation of the development process of this plan, of the history of other and incorporation of other plans and the status of the Non Motorized Transportation and Trails Plan.

• Working on the Plan since January. Draft plan currently being circulated and on the internet.

• The City acquired a grant from Alaska Department of Community and Economic Development to do this plan and in the Request for Proposals it stated that the purpose of the plan was to develop a Homer Areas Comprehensive Trails Plan.

• The crux of the plan, to create a Master Plan or a vision for future of trails and trail development.

• Document trails and evaluation condition. Identify trail networks and move into the implementation process.

• One of the main issues or reasons for this plan is that there has been a loss of green space as Homer has grown.

• Schedule: Started in January, worked on inventory analysis, public meetings in February, assessment report, public meetings in April, draft master plan presented in May.

• There have been a lot of plans since 1983 through to today and there are some great pieces in those plans incorporated into the current plan. This has all been compiled and placed into one data base, showing all of the trails - whether historic, existing or legal trail. Formalized trails and trails at risk. The idea is to preserve the trails for future generations.

• Legal access is always going to be an issue.

• Objective is to create an adopted plan featuring the trails that connects popular destinations within the City of Homer and provides a connection to these trails, longer distance trails, into the back country outside of the City limits.

• Public process, participation and activities to get the public involved. Walk-a-bout with Dan Burden in February.

• Distributed community survey. Participation in local activities and events. Interaction at the schools and with students.

• Homer has a lot of great urban and rural trails.

• Trail connections from neighborhoods to schools.

• New developments including trails. Any new road projects or developments should have associated trails or sidewalks or some sort of pedestrian enhancement or connections.

• Successful routes. Such as for the Senior Center to the commercial district.

• Natural trails.

• Safe crossings. Textured concrete to make a visual key for motorists to slow down. Curb extensions across Pioneer. Reducing travel lanes, on street parking, wider sidewalks. Round about could be used for Lake and Sterling intersection. Conceptual ideas. Main Street gateway into Old Town. Enhancing what currently exists. Addressing bike traffic and making connections. Incorporating bike racks.

• Seasonal changes and trail use changes.

• Public and private partnerships and needs. Sensitive design and layouts already begun in Homer. Trails easements.

• Three plans inside the Master Plan - Sidewalks, Walkways and Safe Crossings. Existing and proposed sidewalks. Bicycle routes.

• Comprehensive plan process.

There was a question and answer period.

ANNOUNCEMENTS/PRESENTATIONS/BOROUGH REPORT/COMMISSION REPORTS

Planning Commission Chair Chesley gave a Commission report.

• •Non Motorized Transportation and Trails Plan.

• •Steep Slope RFP.

Library Advisory Board Chair Mauger gave a Board report. She shared the excitement of the Board and Board Committees regarding the progress of the Library funding. She emphasized the participation required of everyone to bring this project to completion.

Mayor Cushing reported on the visit from the Rasmuson Foundation representatives and advised all that he had proclaimed today as Donna Fenske Appreciation Day in honor of her 25 years of dedication to the Health Nursing Profession.

Councilmember Fenske commented on the ground breaking ceremony at the college, next door, and offered a few kudos toward, long time Homer resident, Mary Epperson.

PUBLIC HEARING(S)

A. Ordinance 04-26, Of the City Council Appropriating Funds in the Amount of $180,000.00 to Replace Old PVC Water Pipe with HDPE Pipe along East End Road and Authorizing the City Manager to Execute the Appropriate Documents. City Manager. Public Works. Fiscal Note: Funding from Account 215-829 Expenditure for the East End Road PVC Pipe Replacement, $180,000.00. (First Reading May 25, 2004, Public Hearing and Second Reading June 14, 2004.)

There was no Public Testimony.

BECK/STARK - MOVED FOR ADOPTION OF ORDINANCE 04-26 BY READING OF TITLE ONLY FOR SECOND AND FINAL READING.

There was brief discussion..

VOTE: YES: NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

ORDINANCE(S)

A. Ordinances 04-22, Of the City Council Amending Homer City Code Sections 18.08.020, Lease Negotiating Committee, 18.08.030, Approval of Lease and 18.08.100, Improvements. City Manager. City Clerk. (First Reading May 10, 2004, Public Hearing Tuesday, May 25, 2004, Second Reading on June 14, 2004.)

FENSKE/BECK - MOVED FOR THE ADOPTION OF ORDINANCE 04-22 BY READING OF TITLE FOR SECOND AND FINAL READING.

It was noted that the word 'to" should be added prior to the word "execute" in 18.08.030(c).

VOTE: YES: NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

B. Ordinance 04-30, Of the City Council of Homer, Alaska Approving and Submitting a Loan and Long Term Debt Authorization for the Purpose of Financing and Constructing the New Homer Public Library to the Voters for Voter Approval at the October 5, 2004 Municipal Election. City Council. (First Reading June 14, 2004, Public Hearings for June 28 and July 26, 2004 and Second Reading July 26, 2004. )

FENSKE/LADD - MOVED FOR THE ADOPTION OF ORDINANCE 04-30 BY READING OF TITLE FOR INTRODUCTION.

There was quite a bit of discussion about where the funding would come from to pay the loan. It was noted that this is for an amount up to and not to exceed $2 million.

Ordinance points:

The City Council has recently adopted a Long Range Fiscal Plan.

During the planning process, the Council identified the need to borrow an amount up to $2,200,000 in order to complete the financing package and begin construction of the new Homer Public Library.

The construction of a new public library has been a top city priority for many years and is considered to be vital to the educational, economic, social, and cultural development and vitality of the City.

The Friends of the Library and its staff, the Library Advisory Board and its associated committees, City staff, and many other dedicated individuals, organizations, and businesses have done an outstanding job raising funds for this project.

The City anticipates at this time that approximately $4.7 Million will be raised for the project through grants, donations, and other fund raising activities and that an additional $1.8 to $2.2 million will be needed.

The amount of money raised to date demonstrates that there is overwhelming support for this project from the community, organizations, businesses, and the federal, state, and local governments.

The City Council wishes to obtain a loan in an amount not to exceed $ 2.2 Million and to incur long term debt in order to make sure that this very high priority project is constructed as soon as possible.

That the Homer City Council finds that at the present time it is in the best interest of the City to incur long- term debt in order to complete the financing package for the new library.

The City Clerk shall submit the following question to the voters at the next regular election to be held on October 5, 2004. The ballot proposition shall read as follows:

Shall the City of Homer borrow funds, which shall be a general obligation of the City, in an amount not to exceed $2,200,000.00 ($2.2 Million) for the purpose of constructing and equipping the new Homer Public Library?

The City Manager and City Clerk are authorized to provide an explanation to the voters regarding issues such as the terms of the loan and how the loan would be repaid.

VOTE: YES: NON OBJECTION .UNANIMOUS CONSENT.

Motion carried.

CITY MANAGER'S REPORT

A. City Manager's Report (Updates and followup; Treasurer's report; June employee anniversaries Robert Painter HVFD 13 years, Laurie Moore Finance 8 years, Nathan Hull HPD 2 years, Levi Stradling PWD 2 years; Homer Spit Pedestrian Crossings; Letter from Donna Fenske regarding her retirement as a Public Health Nurse; Funding for Homer Deep Water Dock Expansion; Hornaday Park Drainage; Woodard Creek Park, Playground Equipment and Traffic Round a Bout Study from Parks and Recreation Commission; Lots available for Lease from Port/Harbor Commission.

B. Bid Report. (Invitation to bid the Homer Animal Shelter - Sealed Bids for construction of a new Homer Animal Shelter are due in the Office of the City Clerk by 2 p.m., June 24, 2004. The project consists of furnishing all labor, materials, equipment, tools, supervision, and other facilities necessary to perform the project in accordance with the plans and specifications. The work includes, but is not limited to the following: Construction of a new 4400 square foot animal shelter consisting of masonry and wood frame construction.)

Discussed were:

Installation of crosswalks on the Spit Road and potential use of HARP funds to construct these crosswalks. It was reported that DOT concurs with the need for crosswalks, is low on funds and asked for assistance from the City of about $8,000.00 and that either Fish and Game or DOT may be able to reimburse the City for any City expended funds.

Speed limits for Sterling Highway and Spit Road.

Hockey Rink location (Multipurpose Ice Arena)

DOT Road Projects, specifically Bartlett, which the Public Works Director reported is not out to bid at this time.

City repaving project on hold due to Public Works schedule and traffic congestion problems with current DOT projects.

Drainage situation at Karen Hornaday Hillside Park ballfields. Manager plans to do a quick fix for as little expenditure as possible.

Question about establishing a Woodard Creek Water Shed District and then proceed to pursue a grant. Steep Slope development, watershed a key part of this picture.

Mayor Cushing called for a recess at 9:45 p.m reconvening the meeting at 9:54 p.m.

COMMITTEE REPORT

A. Road Standards Committee, Last Meeting June 1, next meeting June 22 at 6:30 p.m.

Councilmember and Committee member Yourkowski drew Council's attention to page 50, the synopsis of the Committee meeting and plans regarding the Final Transportation Plan and presentation to the Council on June 28th.

Mayor Cushing commented about the Non Motorized Transportation and Trails plan.

B. Town Center Development Committee meeting notes of March 18, April 15, May 20, Resolution of the Committee. Next Meeting is June 24 at 6 p.m.

City Planner McKibben reviewed the May 20th meeting for the Council and specifically the development of the Resolution.

C. Beach Policy Committee, Last Meeting May 27.

There was no report.

PENDING BUSINESS

NEW BUSINESS

A. Consent Agenda Item I. Memorandum 04-84, from City Clerk, Re: Vacation of a 33 Foot Right-of-Way Lying East and West of Kachemak Drive, Government Lot 31 and Associated Utility Easements as Reserved in Patent Number 1173705; within Section 14, Township 6 South, Range 13 West, Seward Meridian, Alaska; City of Homer and Kenai Peninsula Borough; KPB File 2004-125; KPBPC Resolution 2004-24. Recommend veto and uphold the Homer Advisory Planning Commission's decision.

Mayor Cushing declared a possible Conflict of Interest. Council agreed that a conflict existed that the Mayor, handing the gavel to Mayor Pro Tempore Fenske, excused himself from the table at 10:37 p.m.

FENSKE/BECK - MOVED FOR THE ADOPTION OF THE RECOMMENDATION OF MEMORANDUM 04-84.

Diane Martin reiterated and expanded on her comments from earlier in the meeting.

The Council discussed the pros and cons of vacation and of whether or not to wait

Mayor Pro Tempore Fenske called for a recess to provide time for the City Clerk to look up the language of the Borough Code and Title 29 regarding vacations and Council's action options. The recess period was from 11:20 p.m. to 11:25 p.m.

It was noted from the Borough Code and/or Title 29 that the Council may veto or voice consensus to the Borough Planning Commission action. If a vacation is denied, it may be reapplied for in one year from the date of the final denial action except in the case where new evidence or circumstances exists that were not available or present when the original petition was filed.

STARK/ - MOVED TO DIVIDE THE QUESTION.

Motion to divide the Question was not recognized.

VOTE: YES: YOURKOWSKI.

NO: LADD, STARK, NOVAK, BECK. FENSKE.

Motion failed.

Mayor Cushing returned to the table at 11:30 p.m. and received the gavel back from Mayor Pro Tempore Fenske.

RESOLUTIONS

A. Resolution 04-56(S), Of the City Council Authorizing the Correction of the Drainage Problem at Karen Hornaday Hillside Park, Northside of the Ballfields. Fenske.

Donation from Jim Hornaday of $300 to assist with the costs of correcting this problem.

LADD/FENSKE - MOVED FOR THE ADOPTION OF RESOLUTION 04-56(S) BY READING OF TITLE.

There was no discussion.

FENSKE/ - CALLED FOR THE QUESTION AND UNANIMOUS.

This motion was not recognized.

VOTE: YES: NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

B. Resolution 04-57, Of the Homer City Council Approving and Adopting the Homer Non-Motorized Transportation and Trails Plan for the City of Homer and Recommending Adoption by the Kenai Peninsula Borough. City Manager.

Memorandum 04-85, from City Planner through City Manager as backup.

FENSKE/NOVAK - MOVED FOR THE ADOPTION OF RESOLUTION 04-57 BY READING OF TITLE.

LADD/BECK - MOVED THE NOW THEREFORE BE IT RESOLVED CLAUSE SECTIONS AS FOLLOWS: NOW THEREFORE, BE IT RESOLVED by the City Council of the City of Homer that: Section 1: The Final Draft of the Homer Non-Motorized Transportation and Trails Plan is hereby approved. and adopted as part of the 1999 Homer Comprehensive Plan Update.

Section 2: This plan is hereby recommended to have the process started on it for consideration for change to the Homer Comprehensive Plan. This Plan is hereby recommended to the Kenai Peninsula Borough for adoption as an element of the official Borough Comprehensive Plan within the City of Homer planning area of the borough.

There was some discussion.

VOTE: (primary amendment 1.) YES: NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

There was further discussion.

LADD/STARK - MOVED TO AMEND ON PAGE 271, OF THE PACKET, ADD IN WORD "NEW" PRIOR TO SUBDIVISION. CONSIDER AMENDMENTS TO THE CITY CODE FORNEW SUBDIVISIONS TO INCLUDE ALTERNATIVE TRANSPORTATION INFRASTRUCTURE AND PROVIDE LINKS TO EXISTING AND PLANNED NON MOTORIZED TRANSPORTATION AND TRAILS SYSTEM.

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

Motion carried.

Discussion ensued with some input from the City Planner and Planning Commission Chair Chesley.

NOVAK/YOURKOWSKI - CALLED FOR THE QUESTION.

VOTE: (call for the question) YES: STARK, NOVAK. BECK. FENSKE.

NO: LADD, YOURKOWSKI.

Motion carried.

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

Motion carried.

Kevin Doniere, Dowl Engineers, will put together the final plan and submit to the Council for final action and Comprehensive Plan amendment on June 28, 2004. Additional input is to be submitted to the City Clerk by the Council by Thursday, June 17th to be forwarded to Kevin Doniere.

C. Consent Agenda Item F. Resolution 04-53, Of the City Council Designating Lot 11-B of Bunnell's Subdivision No. 17 as Woodard Creek Park. Requested by Parks and Recreation Commission. City Manager. Recommend adoption.

Memorandum04-89, from Parks and Recreation Commission to City Manager as backup.

BECK/FENSKE - MOVED FOR THE ADOPTION OF RESOLUTION 04-53 BY READING OF TITLE.

Councilmember Fenske had a few objections to creating this park.

VOTE: YES: LADD, YOURKOWSKI, STARK NOVAK, BECK.

NO: FENSKE.

Motion carried.

G. Resolution 04-54, Of the City Council Amending Resolution 03-143(S)(A), to Establish the Interest Rate for the Ocean Drive Loop Bluff Erosion Control Assessment District at Six and One Half Percent (6.5%). Finance. City Manager. Recommend adoption.

Memorandum 04-86, from City Manager as backup.

STARK/BECK - MOVED FOR THE ADOPTION OF RESOLUTION 04-54 BY READING OF TITLE.

Council was advised, by the City Manager, that the interest rate was based on the number used most often in discussions with the property owners. If the interest rate on the bonds is lower this will drop with no reimbursement and if it is higher this will be raised with no additional charge.

VOTE: YES: NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

H. Resolution 04-55, Of the City Council Affirming the Water and Sewer (spaghetti) Line Installation Policy in Homer City Code Chapters 13.24 and 13.28. City Manager. Public Works. Recommend adoption.

Memorandum 04-87 from Public Works Director as backup.

LADD/STARK - MOVED FOR THE ADOPTION OF RESOLUTION 04-55 BY READING OF TITLE.

There was some discussion about the current policy. It was agreed that this is a tough issue, because everyone needs water and sewer.

VOTE: YES: NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

COMMENTS OF THE AUDIENCE

Audience comments upon any matter.

Bill Smith stated that, although, Chair of the Town Center Development Committee he is only speaking for himself. He relayed his analysis of the meeting when Mark Pfeffer attended was that Mr. Pfeffer's interest was having the committee go for a quite large development and asked for support of 66,000 square feet. He advised that the committee did not support this. He mentioned Councilmember Novak's ordinance to change the square footage to 42,000, which Mr. Smith said he thought was reasonable, but the Council did not approve that. He shared his perspective the committee was trying to have some flexibility in working with developers without going through the roof and making big changes.

COMMENTS OF THE CITY ATTORNEY

City Attorney Tans was not present.

COMMENTS OF THE CITY CLERK

City Clerk Calhoun, encouraging voters to get out and vote in the Special Election tomorrow, stated that the polls open at 7 a.m. and close at 8 p.m., that only registered City residents may vote, and that the polling places are the Homer Senior Citizens Center and Homer City Hall Council Chambers.

COMMENTS OF THE CITY MANAGER

City Manager Wrede reported on his and the Mayor's meeting, today, with Northern Dynasty ⁽²⁾Representatives, that they appeared impressed with the Port of Homer and what Homer has to offer. He advised that they agreed to come back again and stay for a longer period of time. City Manager Wrede suggested that a type of forum with local businesses be set up for the Northern Dynasty return visit.

COMMENTS OF THE MAYOR

Mayor Cushing encouraged everyone to vote and that the absentee votes get counted Monday.

COMMENTS OF THE CITY COUNCIL

Councilmember Yourkowski noted that on page 270 of the Non Motorized Transportation and Trails Plan it says to keep the bike and pedestrian lane on the south side of Ocean Drive and a separated pathway on the west side of Beluga Lake Crossing. He commented that he believed the Council had discussed, years past, keeping that pathway on the other side so that it matches the Spit Pathway

There was concurrence of the Council to include this notation in the final draft.

Councilmember Yourkowski voiced his surprise that the Council voted to vacate the easement when the people could have reapplied in a year and there could have been a winning solution.

Councilmember Stark reported on attending the Annual meeting Resource Development Council last Thursday, that it was very good, that he saw a lot of people who are important to Homer and the speakers were the Administrator of the Environmental Protection Agency (EPA) from D.C. and the Regional Administrator of EPA from Seattle.

ADJOURNMENT

There being no further business to come before the Council the meeting was adjourned at 11:59 p.m. The next Regular Meeting is scheduled for Monday, June 28, 2004 at 7 p.m. The next Committee of the Whole meeting, scheduled for Monday, June 28, 2004 at 4 p.m. 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: _______________

clerk@ci.homer.ak.us, 235-3130, home number 235-2843.

1. Council would like the Road Standards Committee to clearly define their mission.

2. Contractor for the Pebble Gold Mine across the Inlet.