Session 09-15 a Regular Meeting of the Homer City Council was called to order on June 22, 2009 at 7:02 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:   HOWARD, LEWIS, NOVAK, ROBERTS,                                                   WYTHE, ZAK

STAFF: CITY MANAGER WREDE

CITY CLERK JOHNSON

CITY ATTORNEY KLINKNER

FINANCE DIRECTOR HARVILLE

FIRE CHIEF PAINTER

PUBLIC WORKS DIRECTOR MEYER

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

Council met as a Committee of the Whole from 4:05 p.m. to 5:23 p.m. to hear John Bost, Mikunda, Cottrell & Co. provide an overview of the 2008 Audit Report and consider Regular Meeting Agenda items. Council met as a Board of Adjustment from 5:33 p.m. to 6:19 p.m. for a Special Meeting to hear an appeal from Susan DiFrancia on denial of a conditional use permit.

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 amended to add:

CITY MANAGER’S REPORT - Memorandum 09-87 from City Manager, Re: Resolution 09-62(A), Anaerobic Digester; Letter from Homer Citizens for Erosion Control, Inc., Re: City lots on Ocean Drive Loop; AND Fact Sheet for Elected Officials, Re: National Incident Management System (NIMS). PENDING BUSINESS - Resolution 09-61(A), Written public comments; Substitute Resolution 09-62(A)(S), A Resolution of the City Council of Homer, Alaska, Expressing its Support for a Grant Application to the Department of Energy to Fund an Anaerobic Digestion Pump Demonstration Project at the Sewer Treatment Plant in Partnership with Technology Matrix Corporation and the Northern Building Science Group; Committing the Human Resources Needed to Develop a Full Application Proposal; and Committing to the Required Local Match if the Resulting Proposal is Satisfactory to All Parties in the Partnership and Selected by the U.S. Department of Energy for Funding. City Manager. RESOLUTIONS - Resolution 09-69, Written public comment; Substitute Resolution 09-70(S), A Resolution of the City Council of Homer, Alaska, Awarding the Contract for the Freight Dock Road Paving Project to the Firm of Peninsula Asphalt Paving, Inc. of Nikiski, Alaska, in the Amount of $206,396.50 and Authorizing the City Manager to Execute the Appropriate Documents. City Clerk; Memorandum 09-86 from Public Works Director as backup to Resolution 09-70(S); Resolution 09-72, Backup information: Contract for Emergency Management Communications Services and Related Matters (May, 2007); and Amendment to Contract for Emergency Management Communications Services and Related Matters.

The agenda as amended was approved by consensus of the Council.

PUBLIC COMMENTS UPON MATTERS ALREADY ON THE AGENDA

Kevin Hogan, city resident, commented on the City Manager’s Report, specifically short term leases. He would like to see the City treat everyone fairly. When his short term lease expired he was evicted and squatted on the property. The Economic Development Advisory Commission is reviewing leases to make them more attractive for developers. He recommends a series of short term leases until the Lease Policy is reviewed by City Council and adopted. The worse thing you can do is treat people differently.

Leonard Wells, city resident, commented on Resolution 09-68, indicating taxpayers should not be donating to the American Cancer Society. As to Resolution 09-64 there is no explanation why this is on the ballot this year to next year.

Scott Adams, city resident, is an annexed resident of the city. As to Ordinance 09-29 the voters already voted, voiced their opinion, and we should move on and see how this year worked out. As to Resolution 09-61 for the boiler replacement, he hopes the existing system is bypassed and something is put inline somewhere else without having to tear into the building. On water/sewer rates he hopes Council will hold off. Each year Council bounces around one user to another. Council used $125,000 from the water/sewer fund and $125,000 from the general fund to buy property on Bridge Creek, a heavily restricted area with 4% to 6.5% usage. Funds should be used to extend lines for more water/sewer so more people can jump on the system. When annexation went in, the vision was to expand water/sewer to the newly annexed area.

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 June 8, 2009 Regular Meeting. City Clerk.

Mayor Hornaday called for a motion for the adoption of the consent agenda as read.

NOVAK/LEWIS - SO MOVED.

There was no discussion.

VOTE: YES. NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

VISITORS

A. John Bost, Mikunda, Cottrell & Co. Re: 2008 Comprehensive Annual Financial Report with Audit and Financial Statements

John Bost, Mikunda, Cottrell & Company, reported on the 2008 audit:

ü General Fund, the fund balance is down $400,000. A $369,000 library note was paid off early. A lot more money in the General Fund was transferred to other funds in the city, including $1.2M to the depreciation reserve and $550,000 to fleet reserves. The fund still did $965,000 better than budgeted. A big loss was budgeted, while the loss was just $400,000. The ending undesignated fund balance was $3.8M. Most cities use two to six months of normal recurring expenditures. Two months would be $1.8M and six months would be $5.5M, placing the city right in the middle.

ü The Harbor did much better, with revenue up $5,000 and expenses up $80. The lease revenue was moved to the port fund and Deep Water Dock revenues were up. There was a loss of $1M, included in the loss is $1.4M in depreciation. The port is generating positive cash, with 2009 the last year for port bonds and then it will be debt free.

ü Water/Sewer Fund has a lot of projects. The Water Treatment Plant was funded with grants and DEC loans. There was a $1.25M loss, exclusive of any capital contributions. In both 2007 and 2008 there was depreciation of $2M and sales tax revenue of $1.2M. If depreciation is added back to the loss, it is generating positive cash. Principle payments on the water/sewer is $600,000 for 2009. There are three other DEC loans with repayment not even started. With the start of those payments it could increase the principal payments by $200,000 to $300,000. Sales tax will go down too.

ü Internal controls and grants went very well with internal controls functioning as they should. There are two people involved in transactions, initiation and approval. There was both a federal and state audit, meaning over $500,000 was spent by both agencies. All reports were filed timely and they are in good shape.

B. Duane Bannock, Program Manager, Spruce Bark Beetle Mitigation Program

Duane Bannock, representing the Kenai Peninsula Borough Spruce Bark Beetle Mitigation Program, presented maps outlining Bald Mountain and Spruceview area projects. The program works in right-of-ways and they will only be working within 50 to 90 ft. of the ROW where they selectively cut dead and dying trees. If the tree falls into the roadway it can conflict with traffic; that is the principle philosophy in using public dollars on private property. Some customers are agreeable to the cutting, while some are not. Properties are surveyed and they go out to bid for a contractor to fell and limb trees. It is the landowner’s option if they wish to keep the trees. There is a less than successful track record in projects in this area in utility corridors, with trees left in the area. That is not the way the Spruce Bark Beetle Mitigation Program does business today; trees are either removed or left for the landowner. A 2006 study identified projects to include slash near Paul Banks that needs removal, an area in the Diamond Creek Park that needs mitigation, and 20 miles on the Baycrest Ski Trail system. Personal use firewood areas are being offered, with the first project on Tom Cat Road off of Greer Road. A blitz will be launched by the Mayor soon. Permits will be available through the local KPB at no cost. Specific instructions and safety tips will be included. Slash disposal programs implemented in Homer have had mixed reviews; two slash disposal sites in Kenai and Coho are wildly successful. An additional site is being selected in the East End Road area. Currently slash may be taken to the KPB solid waste facility. The Spruce Bark Beetle Program has received a large grant from federal stimulus money to use for a stewardship program called the Firewise Home Ignition Zone. Teams go to homes to identify work to firewise homes and property.

C. TAP (the Anaerobic Pump), Northern Building Science Group

John Woodward, Northern Building Science Group, reported new information from Ralph Butters of the Division of Energy (DOE) that Dr. Schimel has good reason to be concerned about industrial espionage. DOE set Dr. Schimel up with a partner, thinking it would be an ideal industrial partner and they tried to steal the technology from him. A major food manufacturer refused to go forward unless Dr. Schimel signed the technology over to him. Mr. Woodward stated Dr. Schimel has good reason to keep his mouth shut about any of these projects. The system is simple, with off the shelf technology that nobody has applied. Ralph Butters said he had no concerns on building the system. The system requires off the shelf parts, but requires large tanks that will present a technical problem from being big and from an unusual manufacturer. The control system has been utilized with operations nationwide and takes time to set up and tune for operating. Building and setting up the system presents no technical challenge. Between local contractors, the city and his company, there is plenty of capacity for the project. The project is still preliminary and the prices are in question. The enclosure for keeping at a set temperature is a known technology here. The project is funded for septic only and is projected to pay more than the O&M costs with the present system. The current system is adequate for a backup, to be put to rest with the new system. The project is one step at a time, septic first to run at full capacity. There will be no expense as a septic main goes from the Spit to the Waste Water Treatment Plant. It is environmentally clean as wastes won’t have to be trucked, waste will run down the septic main in the peak hours. It is the classic waste to energy system. Extending the septic main to West Hill will not be that big of a project to extend up to the facility. We are currently waiting to hear where we are on DOE’s funding list and if we’ll be selected to submit an application.

Allison Butler, Northern Building Science Group, reported the Anaerobic Pump is one of the most sustainable systems as it consumes a waste product and delivers a usable product with multiple benefits. Those benefits include reduced costs, cleaner environment, and the potential to integrate with other systems and utilities. It dovetails in with Homer’s Climate Action Plan that was approved in 2007. Organic wastes are used by common bacteria and digested without air in an anaerobic condition. They produce methane and carbon dioxide. Methane is a potent greenhouse gas, when burned it produces CO2 and oxygen, making it a lot less harmful as a greenhouse gas. The four step process includes hydrolysis – breaking down large chunks of solids. The Anaerobic Pump is a multi stage system, with the second stage allowing the breakdown process by pressurizing the gas at a 90% efficiency. It is efficient at room temperature with less heat and energy costs going into it. The remaining solids are clean and valuable as a fertilizer. The TAP kills pathogens, produces no odors, has a wider potential range of waste used as a feedstock, with lower operating costs. The EPA surveyed operating and maintenance costs for operating the TAP and estimated $25 for a dry ton. Homer would produce .5 to .8 dry tons a day, producing the equivalent of 65 to 75 gallons of heating fuel. Most of the paybacks are projected at three to four years. Alaskan jobs could be created. If funded by DOE it would cost Homer $700,000 vs. $5.3M for other systems without current funding. There are a number of tax incentives, loans and grants that may be available from the Federal Government and the State. There are other food stocks that can go in to the system so we are producing more methane. Within three weeks DOE will decide if they wish to approve the project. A full proposal needs to be developed with a projected three years to the grand opening. Ms. Butler asked Council to support the resolution that has been changed to include staff time and taking quick action. Although there are some reservations and concerns, a full answer won’t be known until a proposal is developed.

D. Bob Cicciarella, Administrator, Kachemak Emergency Service Area

Bob Cicciarella, Administrator of Kachemak Emergency Service Area (KESA), recognized Bob Simmons, Chair of the KESA Board, Mayor Carey and Special Assistant to the Mayor Sue Wilcox. Mr. Cicciarella commented on the transition plan for the service area to be independent. The service area was established October 2000 and was registered as a fire department in Alaska in 2001. A mill rate of 1.75 was established. Since 2001 KESA has contracted services with the City of Homer. Through grants and other funding KESA acquired the McNeill Canyon fire station and community center, fire and EMS equipment. In July 2007 KESA added Mr. Cicciarella as part-time administrator and was rapidly moved to full-time. In April 2008 an operation plan was developed, including a recommendation for their independence. Late 2008 the KESA Board of Directors voted to move to independent operations of the entire service area and to add an administrative assistant to help with the growing chores and needs. Challenges included the need for a temporary fire station on the west side (Ruth Way) while waiting for the Diamond Ridge facility to get funding, volunteers, training to meet state mandated requirements, and attaining necessary approvals and agreements for the operation. Call volumes have increased, with 73 calls this year. Thirty-nine volunteers have been recruited. KESA plans to be effective July 1^st, and is in the process of finalizing the mutual aid agreement with the City of Homer. Public hearings will be held June 24 – 26, with a homeowner association meeting on the 27^th. Mr. Cicciarella thanked the City, Fire Chief Bob Painter and the HVFD for everything.

ANNOUNCEMENTS/PRESENTATIONS/BOROUGH REPORT/COMMISSION REPORTS

A. Mayor’s Recognition – Homer Lady Mariner Softball Team and Head Coach, William Bell

Mayor Hornaday read the recognition and presented it to coaches Elaine Brown, Patty Lennihan, Anita Sligh and star pitcher Sydney Sligh.

B. Mayor’s Recognition – Homer Mariner Baseball Team and Head Coach, Dave Gilbert

C. George Remington – Thank You for Clean-up on Forest Glen Drive

George Remingon was recognized for taking initiative to clean up an area on Forest Glen Drive.

Kenai Peninsula Borough Mayor Carey reported ten years ago he served on the City Council and served three terms as mayor. He and members of his staff went to Anchorage for the issue of forestry and the impact on roads. Assembly President Milli Martin spoke strongly to the issue of engaging in activity that leaves resource roads in worse condition than when started. Mayor Carey met with the President of Chevron and the State of Alaska Oil and Gas Director. This morning he received a call from Chevron indicating they will soon sign an agreement to start the tideline process of drawing oil out again. It is good news to hundreds of contractors that have been laid off. There is wonderful work being done at the South Peninsula Hospital. The Borough has provided support by a loan for an MRI. The people make it an awesome healthcare facility. There is another two-year capacity on the solid waste site, recycling is encouraged. Mayor Carey completed his 25^th community day meeting, with trails as the topic. The largest single vision Mayor Carey has for the Kenai Peninsula Borough is to promote alternative energy and energy efficiency. The Borough has a small enough population that a high number of individuals want to get involved. His vision at the end of his term in 28 months is to move the Borough to the star. Lastly, the Borough is working to get a road to Tyonek. There are 18 projects they are aiming at, requiring 18,000 people living over there as they develop programs over the next 30 years. The Kenai Peninsula Borough is made up of one third of the Borough that is across the inlet, one third is the Cook Inlet and one third is the Kenai Peninsula Borough.

Dean Ravin Economic Development Advisory Commissioner, commented the commission is working on the Lease Policy. They are going through the policy and code to tidy up and make it more coherent. They should have recommendations to City Council in two months. They will then tackle the boilerplate lease, which will help people move into city leases and stimulate economic development.

PUBLIC HEARING(S)

A. Ordinance 09-28(S), An Ordinance of the City Council of Homer, Alaska, Amending Homer City Code Chapter 1.48, Public Library, Amending the Number of Library Advisory Board Members from Outside City Limits from One Member to Two Members and Changing the Descriptive Title of Librarian to Library Director Within the Chapter. City Clerk. Recommended dates: Introduction June 8, 2009, Public Hearing and Second Reading June 22, 2009.

Mayor Hornaday opened the public hearing.

There was no public testimony.

Mayor Hornaday closed the public hearing.

Mayor Hornaday called for a motion for the adoption of Ordinance 09-28(S) by reading of title only for second and final reading.

LEWIS/NOVAK - SO MOVED.

There was no discussion.

VOTE: YES. NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

B. Ordinance 09-29(A), An Ordinance of the City Council of Homer, Alaska, Amending the FY 2009 Operating Budget by Appropriating Funds in the Amount of $5,000 for Public Information on the Sales Tax Ballot Proposition, Including Without Limitation Information that May Influence the Outcome of the Election on the Ballot Proposition. Wythe. Recommended dates: Introduction June 8, 2009, Public Hearing and Second Reading June 22, 2009.

Mayor Hornaday opened the public hearing.

Frank Griswold, city resident, commented on the fifth whereas stating it was not Council’s duty to influence the election. He referenced Stanson vs. Mott, California Supreme Court, that using public funds to promote a ballot measure is unreasonable. Mr. Griswold read a portion of the decision in Boyd vs. United States. It is devious to portray partisan propaganda as non partisan educational information. If he were in favor of the proposition he would vote against it as a protest of the City’s tax dollars to influence his vote. Let the media inform the voters, and take $5,000 and buy some decent chairs for the members of the audience.

Leonard Wells, city resident, urged Council to vote not to expend taxpayer’s money. If Council wishes to voice opinions as to whether taxes should go up or not, there is plenty of opportunity to voice their opinion why it is needed or not. Let the radio and newspapers report on that to get the information out to voters and let them make the decision. The only reason you would be spending money is if you don’t think you have enough already.

Mayor Hornaday closed the public hearing.

Mayor Hornaday called for a motion for the adoption of Ordinance 09-29(A) by reading of title only for second and final reading.

WYTHE/ROBERTS – SO MOVED.

Mayor Hornaday commented the people voted 2-1 to take groceries off the ballot; is there any indication they have changed their mind? We spent $3,000 on the town hall and got in trouble for it and he personally paid the $400 fine. He cannot imagine we need $5,000.

Councilmember Wythe commented it is not the intent for Council to take a position one way or another. By stating Council can do the education without limitation is to allow information to be within the scope of APOC. It is based on the last APOC ruling at our attempt to remain impartial. The scope of the use of funds is broadly defined, so it cannot be construed we are doing something illegal. The decision to put the measure on the ballot was made by Council the first of the year. This year we underestimated the amount of revenues lost by removal of sales tax by $50,000 per month. There was already a $1M cut from the budget, and now there will be another $400,000 loss. While some members are connected with the media, not all are. It allows all members of the community to become involved.

Mayor Hornaday asked if Ordinance 09-29(A) complies with the APOC ruling.

City Attorney Klinkner answered that State Statutes authorize the City to expend funds to influence the outcome of a ballot proposition if the funds are authorized in this manner. The statute also permits the City to put out information characterized as non partisan without the authorization. However, it is clear from the APOC decision on Town Hall that APOC construes very narrowly what would be non partisan information. To avoid the issue to APOC it is presented to Council in this manner.

Councilmember Roberts does support the ordinance. Although someone testified earlier the information on the proposition can be obtained through the newspaper and media, she knows the ordinance will bring information to the public that they may not be aware of.

Councilmember Zak voiced opposition, stating the $5,000 could be better spent. The CPA shows increased revenue from property taxes. Even though sales tax is down we have quite a bit of extra money we had not planned on. We are hurting from water/sewer, with no long term solution. He disagrees with the sixth whereas, that talks about eliminating essential services. It is a small town and we have good newspaper and radio coverage. He has talked to a lot of people about the fairness of the tax. Everyone pays across the board for food. We have to look at this more in depth for the effect on the population. There are other ways to get the tax.

Councilmember Howard noted the ballot question was to be specific of the loss of the 3% sales tax specifically for HART and HAWSP.

City Clerk Johnson retrieved Ordinance 09-02 with the ballot language that indicates the loss of sales tax on HART and HAWSP.

Councilmember Novak commented $5,000 is more than what would be spent. On the Town Center the City tried to put out unbiased information that showed both sides of the picture. APOC found it was biased. Unless we specifically appropriate money for the ballot issue, we are in violation of APOC. The City has a responsibility to put out information. If the City’s hands are tied it is not in the best interest of the public or the City. It would be nice not to tax food; the reality is we will be short in the budget and will have to make cuts. The city residents need to know if services will be reduced or lost. It is important for the City to say what they are looking at and have to do. The people make the vote; they make the decision.

Mayor Hornaday read the ballot proposition: “Shall the City of Homer levy a sales tax on sales of non prepared food items at a rate of 3.0%, consisting of 0.75% to fund water and sewer systems (HAWSP) and 0.75% to fund construction of roads and trails (HART) and 1.5% for the General Fund during the period from September 1^st through May 31^st?”

Councilmember Howard commented she will vote for the ordinance on the basis of insurance, to ensure we have followed the rules of APOC.

VOTE: YES. LEWIS, ROBERTS, WYTHE, HOWARD, NOVAK

VOTE: NO. ZAK

Motion carried.

C. Resolution 09-59, A Resolution of the City Council of Homer, Alaska, Amending the Karen A. Hornaday Hillside Park Master Plan. City Clerk.

Memorandum 09-81 from Parks and Recreation Advisory Commission as backup.

Mayor Hornaday opened the public hearing.

Jack Wiles, Board Member of Kachemak Bay Conservation Society and member of Friends of Woodard Creek, stated the Master Plan was well publicized for the January open house. At the last meeting of the Parks and Recreation Advisory Commission they voted to adopt the plan with minor amendments. There are three concept site plans. It will take several years to raise funds for construction and implementation of the plan. Mr. Wiles proposed amendment language to the site plan concept for playground location, to relocate the park maintenance shed to a secure fenced area adjacent to the campground entrance and retain the playground in its present location. Amendments to parking improvements to relocate the park entrance road were proposed. There is a critical need to place a gravel parking pad down on the area by the restroom. The fourth ball field has been used for parking, it is proposed to be used as parking; it is not the T-ball field.

Jim Preston, 35-year city resident, commented Woodard Creek has been channelized or compressed over the last years, creating more velocity. The Cook Inlet Keeper gets sad as you move sediment into Kachemak Bay. It is a good investment for the City to back the Karen Hornaday Park plan, as it will focus towards restoring Woodard Creek. Mr. Preston thanked Council for listening to his simple hydrologic presentation.

Robert Archibald, Kachemak Bay Conservation Society, has been dealing with the Woodard Creek and Karen Hornaday Park situation for quite a while. There has been strong help since Jack Wiles came aboard. The plan is very viable. At a recent fundraiser the group made over $7,000 net. It provides a nest egg to get things going. He hopes the plan will be approved as it is a jewel for the city. It is a safety issue to remove the road. Anyone that has walked up there sees the deep slope. Hard rain may not sustain the culverts.

Lou Stewart, city resident and Parks and Recreation Advisory Commissioner, supports the plan. It is the result of hard work by numerous devoted individuals. He has been absent a lot this winter and acknowledged the hard work by Jack Wiles, Beth Cumming and Friends of Woodard Creek, Alaska Parks and Bill Evans. It is a stated goal of the commission to do the Karen Hornaday Park Master Plan and plans for other parks. Jack Gist Park is next on the commission’s list. The annual Park Day will be at Jack Gist Park, as they are looking to garner support of the users of that park.

Beth Cumming, city resident, supports the Karen Hornaday Park amendment. It is sure to be done in phases. She is looking forward to having the road moved for safety issues and a trail up through the park. She would like to see the Memorandum of Understanding included with the plan, with the door left open for future changes.

Mayor Hornaday closed the public hearing.

Mayor Hornaday called for a recess at 8:43 p.m. and reconvened the meeting at 8:49 p.m.

Motion on the floor from June 8^th: MOTION FOR THE ADOPTION OF RESOLUTION 09-59 BY READING OF TITLE ONLY.

ROBERTS/WYTHE - MOVED TO AMEND THE HORNADAY PARK PLAN PAGE 31 ITEM #4 AFTER THE WORDS “FOURTH BALL FIELD” INSERT THE WORDS “NOT THE T-BALL FIELD.”

The amendment was suggested by Jack Wiles.

Councilmember Wythe addressed Ms. Cumming’s remarks on including the Memorandum of Understanding in the plan. Putting the MOU in the Karen Hornaday Plan would allow for it to be forgotten. The MOU will come back before the Parks and Recreation Advisory Commission.

Councilmember Roberts commented she would not be making the other amendments as proposed by Jack Giles, as they are too late to consider the ramifications. The proposed amendments would need to be examined in great depth. Councilmember Wythe concurred the plan was left as broad as possible for future Councils.

Mayor Hornaday thanked everyone that worked on the Karen Hornaday Park and Woodard Creek.

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

Motion carried.

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

Motion carried.

ORDINANCE(S)

A. Ordinance 09-30, An Ordinance Amending Homer City Code 14.04.040 and Homer City Code 14.08.080 to Provide for the Determination of Sewer and Water Rates on or before December 1, 2009, and Thereafter on a Biennial Basis, with New Rates Becoming Effective on July 1. Novak. Recommended dates: Introduction June 22, 2009, Public Hearing and Second Reading June 29, 2009.

Mayor Hornaday called for a motion for the adoption of Ordinance 09-30 for introduction and first reading by reading of title only.

NOVAK/LEWIS - SO MOVED.

Councilmember Novak explained the intent is to change the initial start date of new water and sewer rates to December 1^st. The date is now July 1^st.

Councilmember Wythe commented if the middle of summer is a bad time, Christmas time is a worse time. At a time when every other bill will go up it would add a water/sewer bill that you have not had time to budget in. Council spent an exhaustive amount of time on building the case and reasoning why the rate increase is needed.

Councilmember Howard expressed reluctant support, as the audit report reaffirms the seriousness of the water/sewer fund and essential services. There is a huge debt load. The rates should have been increased six months ago. With the new financial information we need to move on what was agreed upon three meetings ago.

Councilmember Zak will vote no, although he agrees with Councilmember Howard. From what was learned from the CPA, we will see increased costs immediately. He opposes an increase of water/sewer rates without a better plan.

Councilmember Roberts referenced the fiscal note on Ordinance 09-30. A delay of implementation of the new water/sewer rates would lose $400,000, about the amount we were trying to recoup with depreciation. She had seriously considered delaying an increase in the rates before seeing the figure and hearing audit figures. We have $600,000 excess and will need $800,000 next year to pay debts. We are tight on money and it is important we be responsible for the water/sewer fund.

Councilmember Howard would like to start a campaign for water conservation. At the next meeting she would like to introduce an ordinance for development of a utility commission to work and help advise how best to manage this serious service we provide.

Councilmember Lewis said after hearing the audit report and what we will have to pay, he will vote no.

Councilmember Novak recognizes the City’s serious situation, but his gut sense is it could wait until December 1^st. The financial picture in the community is not great; it is a tough year. In addition to the holiday on the grocery tax we could postpone the water/sewer rates to December 1^st to eliminate additional expenses to people and businesses.

VOTE: YES. NOVAK, ZAK

VOTE: NO. LEWIS, ROBERTS, WYTHE, HOWARD

Motion failed.

B. Ordinance 09-31, An Ordinance of the City Council of Homer, Alaska, Amending the FY 2009 Operating Budget by Authorizing the Expenditure of $19,000 from the Water Reserve for the 10% Loan Match Required to Complete the Mid-Hillside Pressure Reducing Valve (PRV) Station Stairway Project. City Manager/Public Works. Recommended dates: Introduction June 22, 2009, Public Hearing and Second Reading July 27, 2009.

Memorandum 09-84 from Public Works Director as backup.

Mayor Hornaday called for a motion for the adoption of Ordinance 09-31 for introduction and first reading by reading of title only.

WYTHE/LEWIS - SO MOVED.

There was no discussion.

VOTE: YES. NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

CITY MANAGER’S REPORT

A. City Manager’s Report

1. Citizen Volunteer, George Remington: We wanted to take a moment to publicly acknowledge and thank a citizen volunteer who took it upon himself to clean up a property on Forest Glen that had become a real problem for the neighborhood. This property had generated many complaints and the owner had contact from the City on numerous occasions. A copy of a Homer Tribune article about this clean up is attached. George Remington is a retired State Trooper and a long time friend of the property owner. The owner has recently left the state, so George decided to take it upon himself to help his friend. With a few volunteers, he organized a massive clean-up of the property. Moore and Moore Services provided a dumpster and the Borough agreed to waive tipping fees at the landfill. Within a few weeks, the property was cleared of debris. George’s motivation to accomplish this project has made for a more harmonious and attractive neighborhood and protected property values there. This is an example of a coordinated volunteer effort that makes this community a great place to live. Thanks George, and thanks to Moore and Moore and the Borough! Before and after pictures will be provided at the meeting.
2. Short Term Leases (Five Years), Fish Dock Road: There are several fish buyers that have buying stations on Fish Dock Road that are not permanent buildings or large capital investments. These structures have remained in place for several years under short terms lease and storage fee agreements with the understanding that they would move if someone responded to an RFP with a development proposal that the Council approved. Even thought these fish buyers are not making significant capital investments here, they still have value to the local economy because they give fishermen reasons to deliver their fish here, they employ people, and they purchase local goods and services. The Administration recognizes that the economy generally and the fishing industry in particular may not be conducive to large capital investments right now. If you look around, you don’t really see many new fish processing plants going up around the State. With that in mind, we asked the Lease Committee and the Port and Harbor Commission if they thought it made sense to make short term leases (3 to 5 years) available to these businesses. Doing so would provide some certainty for them, keep those businesses in town, and basically acknowledge fiscal reality. Both bodies recommended that we do so. We will be following up on this and taking the necessary steps to get these leases before the Council for your review.
3. Short Term Lease, Chip Pad: We are in the process of negotiating a short term lease (6 months) and Terminal Use Agreement with a metal scrap dealer from Kenai who wants to ship old crushed cars and other scrap metal from the Port of Homer. We are taking precautions to make sure there are no objectionable environmental or safety impacts. We think this is a good deal because it helps with a Peninsula wide recycling effort, it promotes business at the port, and it generates money for the Port and Harbor Enterprise Fund.
4. NIMS / FEMA Training: I mentioned in the last report that the City had to keep up with required NIMS / FEMA emergency management training if it wanted to be eligible for disaster assistance. The staff is doing a really great job at obtaining this training. Attached is a memo from Sheri documenting staff progress in this area for your information. Recall that FEMA requires that elected officials also take some of these courses. Chief Painter will provide you with a list of courses required for elected officials in the near future.
5. Boiler Update: After the conversation we had at the last meeting regarding replacing the boiler at the Old Middle School, Public Works went back and took another look at less expensive alternatives, including a new, attached boiler room. Attached is a memo from Carey outlining some of those alternatives and the estimated cost. You will see that we recommend Option 2. Option 2 is significantly less money and it will help to insure that we won’t have a boiler failure next winter or the winter after that. The big difference here is that we are purchasing and installing only one boiler instead of two. It is common to have two in buildings of this size to provide for redundancy. Two new boilers could not be squeezed into the existing boiler room. But one boiler can, barely. We also avoid almost all contact with the asbestos.
6. Zoning Remand: At the last meeting, the Council remanded Ordinance 09-19, an Ordinance amending the Homer City Zoning Map to rezone portions of Urban Residential to Residential Office to the Planning Commission. I am a little concerned that the Council remanded this ordinance with very little instruction or guidance for the Planning Commission. Generally when items are remanded, the reasons for the remand are included so that the body who receives the remand understands the issues that need to be addressed. In this case, it was stated that there was confusion about the numbers and how many property owners supported the petition. There was also a vague reference to “other problems.” but nothing specific. I would encourage the Council to visit this issue again and articulate what it is exactly that it thinks is a problem or is lacking in the Commission’s findings. Otherwise, the Commission will be left wondering what needs to be addressed and it could waste a lot of time going down the wrong road or even, starting the whole process over.
7. Land Sales: The appraisal on the old Library Lot will be completed within a few weeks and we should have it on the Market in July. Appraisals for the other three lots along Ocean Drive Loop will not be completed until late July. The Seawall Property Owners Association has expressed some concern about the City selling lots behind the wall and you can expect some correspondence from them soon.
8. Kachemak City Sewer Contract and Charges: The contract between the City of Homer and Kachemak City regarding sewer services has expired. We are presently working with Mayor Morris to develop a new contract for approval by both City Councils. Mayor Morris also expressed concern that the new sewer rate model does not take into account an old agreement that Kachemak City would not be charged for bill collection in the service fees or customer charges. Kachemak City collects sewer fees from its own residents and Homer simply sends the City a single bill. We have tentative agreed to adjust for this by reducing the customer charge for the City by about $3.20 per customer (about 110 customers) and work that adjustment into the new contract.
9. KESA / Mutual Aid Agreement: There are several items on this agenda regarding KESA. First, Council has a Resolution before it which approves a Mutual Aid Agreement between the City and the Borough. I believe this Agreement contains the assurances that the Council wanted to protect the City in the event that the relationship becomes unbalanced. Second, Council has a resolution before it approving amendments to the Emergency Communications Contract between the City and the Borough. This is necessary because the City has agreed to continue to provide dispatch services to KESA for $35,000 per year. The administrator for KESA will be at the meeting as a visitor to give you an update on the transition from KESA’s perspective. There will also be a series of jointly sponsored open house informational meetings on June 24, 25, and 26. A public service announcement is attached.

City Manager Wrede reported an appraisal will be done within the next couple of weeks on the old library lot. More aggressive advertising on the lot will be done with signs. Lot 70 Oscar Munson Subdivision is set for appraisal in late July and may be on the market in August. A letter from the Seawall Homeowner’s Association requests that the two lots on Ocean Drive Loop not be sold. It poses a problem for appraisers, as there is no setback there and building would have to be on pilings. There are assessments for the seawall and water and sewer on the lots, exceeding the value of the lots. Appraisers are willing to do the work, but it may take awhile before they are on the market, if at all. A notice on FEMA requirements for elected officials was reviewed. Fire Chief Painter said although training is highly recommended, it is not required. Training is required for staff. A recent newspaper article mentioned $165,000 in funds to the City. The money is coming from State HB 79 that passed at the end of the session, providing stimulus money for economic relief with no strings attached. Mayor Carey plans to recommend the Borough’s allotted $1M go to property tax relief. The City could recommend the funds go to sustainability. City Manager Wrede has received the go ahead from DOT for the Spit Parking Lot project. This summer the existing parking lot at the base of the Spit will be doubled in size. He will be meeting soon with Senior Center folks on the Senior Access Trail. It is hoped the project can be completed this summer in conjunction with the new paving project on the nearby street.

Councilmember Wythe requested a list of CIP items that would qualify for the stimulus money.

B. Bid Report

C. Question of the Week – This year there are 2 cruise ships visiting Homer; 9 are scheduled for 2010. Should we be marketing Homer to the cruise ship industry?

COMMITTEE REPORT

A. Public Arts Committee

B. Transportation Advisory Committee

C. Permanent Fund Committee

D. Lease Committee

PENDING BUSINESS

A. Resolution 09-61(A), A Resolution of the City Council of Homer, Alaska, Authorizing the City Administration to Proceed with the Boiler Replacement Project at the Old Middle School. City Manager.

Memorandum 09-85 from Public Works Director as backup.

Motion on the floor from June 8^th: MOTION FOR THE ADOPTION OF RESOLUTION 09-61 AS AMENDED, BY READING OF TITLE ONLY.

Councilmember Howard asked for a correction to the adoption date.

City Manager Wrede called attention to Public Works Director Carey Meyer’s Memorandum 09-85 outlining the options for the boiler replacement.

Councilmember Wythe expressed difficulty putting $64,000 into the building, as the building costs the City $100,000 a year.

ROBERTS/LEWIS - MOVED TO AMEND THE 3^RD WHEREAS TO STRIKE $150,000 AND REPLACE WITH $64,000 AND ELIMINATE “WITH A MORE PRECISE ESTIMATE TO BE PROVIDED BY THE COUNCIL MEETING ON JUNE 8, 2009.”

This is Option #2 in Memorandum 09-85.

Councilmember Zak said the proposal was suggested by a member of the audience to hook the new boiler into the current system. It will provide more years out of the building with lower fuel costs.

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

Motion carried.

ROBERTS/ZAK – MOVED TO AMEND TO STRIKE THE FIRST BE IT FURTHER RESOLVED.

Option #2 does not include an outside building, therefore, removes the language that an outside building for housing the boiler be considered.

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

Motion carried.

ROBERTS/ZAK - MOVED TO AMEND THE BE IT FURTHER RESOLVED TO INCLUDE OPTION #2 IN MEMORANDUM 09-85.

Councilmember Roberts commented it is very costly for a new boiler, yet needed in good conscience when renegotiating leases in the building. We could get payback rapidly, do not address any asbestos problems and can reuse the boiler.

ROBERTS/ZAK - MOVED TO AMEND THE FISCAL NOTE TO $64,000.

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

Motion carried.

VOTE: (main motion as amended) YES. HOWARD, NOVAK, LEWIS, ROBERTS, ZAK

VOTE: NO. WYTHE

Motion carried.

B. Resolution 09-62(a), A Resolution of the City Council of Homer, Alaska, Expressing its Support for a Grant Application to the Department of Energy to Fund an Anaerobic Digestion Pump Demonstration Project at the Sewer Treatment Plant in Partnership with Technology Matrix Corporation and the Northern Building Science Group; and Committing to the Required Local Match. City Manager.

Resolution 09-62(A)(S), A Resolution of the City Council of Homer, Alaska, Expressing its Support for a Grant Application to the Department of Energy to Fund an Anaerobic Digestion Pump Demonstration Project at the Sewer Treatment Plant in Partnership with Technology Matrix Corporation and the Northern Building Science Group; Committing the Human Resources Needed to Develop a Full Application Proposal; and Committing to the Required Local Match if the Resulting Proposal is Satisfactory to All Parties in the Partnership and Selected by the U.S. Department of Energy for Funding. City Manager.

Motion on the floor from June 8^th: MOTION FOR THE ADOPTION OF RESOLUTION 09-62 AS AMENDED, BY READING OF TITLE ONLY.

Mayor Hornaday called for a motion to substitute Resolution 09-62(A)(S) for Resolution 09-62(A).

ROBERTS/LEWIS - SO MOVED.

There was no discussion.

VOTE: YES. NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

Councilmember Wythe expressed concerns that staff was moving forward to include the potential cost to the community without money available, unavailability of staff time, the individuals most tied up in the water project would have to dive into this project, and not committing to $700,000 for a project of this nature. We already have a water/sewer system that is taxing residents and she has a hard time committing to something so speculative.

Councilmember Roberts will vote yes as it will not cost the City a lot of money to investigate. An alternative project to correct the problem is proposed at $5.2M. Although she understands it will involve City time, Public Works Director Carey Meyer gave the confidence it may be able to work, as well as DOE.

Mayor Hornaday asked for the City Attorney’s opinion on the City’s liability if it finds the full proposal on the anaerobic digester pump is not satisfactory.

Attorney Klinkner responded the City is offering commitment to prepare an application and then it is back in the City’s court.

Councilmember Novak asked City Attorney Klinkner if he sees any benefit of adding language to include a financially satisfactory proposal.

City Attorney Klinkner advised the language “satisfactory to all parties” includes financial as well as other issues and it is covered in the current language.

VOTE: YES. ZAK, NOVAK, LEWIS, ROBERTS

VOTE: NO. WYTHE, HOWARD

Motion carried.

NEW BUSINESS

A. Memorandum 09-83, From City Clerk, Re: Proposed 2010 Budget Schedule.

Mayor Hornaday called for a motion for the approval of the recommendations of Memorandum 09-83.

WYTHE/LEWIS - SO MOVED.

There was no discussion.

VOTE: YES. NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

RESOLUTIONS

A. Resolution 09-63, A Resolution of the City Council of Homer, Alaska, Accepting the 2008 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 the Financial Report. City Manager/Finance.

Mayor Hornaday called for a motion for the adoption of Resolution 09-63 by reading of title only.

LEWIS/WYTHE – SO MOVED.

John Bost of Mikunda, Cottrell & Co. was thanked for a good job and the Finance Department was thanked for their good job.

VOTE: YES. NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

B. Resolution 09-64, Of the Homer City Council Expressing its Continued Strong Support for the Homer Deep Water Dock Construction Phase II Project and Expressing its Intent to Place a Bond Proposition in the Amount of Two Million Dollars on the October 2010 Regular Election Ballot Instead of the October 2009 Regular Election Ballot as Authorized by Resolution 08-72. City Manager.

Mayor Hornaday called for a motion for the adoption of Resolution 09-64 by reading of title only.

WYTHE/ROBERTS - SO MOVED.

In response to an earlier public comment, Councilmember Roberts expressed the need to postpone the ballot measure as the City Manager has indicated we are not ready. It is not appropriate to ask the voters until there is more information to make an informed decision.

VOTE: YES. NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

C. Resolution 09-65, A Resolution of the City Council of Homer, Alaska, Extending the City Attorney Contract with Birch, Horton, Bittner, Inc. for the Period of August 1, 2009 through July 31, 2010 in the amount of $11,000.00 Per Month for Fifty Hours, and Hourly Rates for Work Above and Beyond Fifty Hours Per Month for Specialized Services at the Rate of $205.00 for Shareholders and Members; $180.00 for Associates; and $100.00 for Paralegals and Authorizing the Mayor to Execute the Contract.  City Clerk.

Mayor Hornaday called for motion for the adoption of Resolution 09-65 by reading of title only.

LEWIS/HOWARD - SO MOVED.

There was no discussion.

VOTE: YES. NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

D. Resolution 09-66, A Resolution of the City Council of Homer, Alaska, Awarding a Lease for City Property on the Homer Spit, a Portion of Lot 48, Homer Spit Subdivision Amended to Kachemak Port Services of Homer, Alaska, in an Annual Amount of $12,930 and Authorizing the City Manger to Negotiate and Sign the Appropriate Documents. City Manager/Port and Harbor.

Memorandum 09-82 from Lease Committee as backup.

Mayor Hornaday called for a motion for the adoption of Resolution 09-66 by reading of title only.

WYTHE/LEWIS – SO MOVED.

There was no discussion.

VOTE: YES. NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

E. Resolution 09-67, A Resolution of the City Council of Homer, Alaska, Electing to Participate in the AMLJIA Loss Control Incentive Program for the City of Homer. City Manager/Finance.

Mayor Hornaday called for a motion for the adoption of Resolution 09-67 by reading of title only.

WYTHE/LEWIS - SO MOVED.

There was no discussion.

VOTE: YES. NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

F. Resolution 09-68, A Resolution of the City Council of Homer, Alaska, Expressing Support for the Relay for Life of Homer and Donating $100.00 to the Cause of the American Cancer Society to Find a Cure for Cancer in our Lifetime. Mayor.

Mayor Hornaday called for a motion for the adoption of Resolution 09-68 by reading of title only.

WYTHE/ZAK - SO MOVED.

Councilmember Howard asked that the $100 donation be excluded from the resolution. She has $100 to contribute. The Relay for Life of Homer raised $62,000.

City Manager Wrede reported he gets lots of calls from various organizations and the people are told Council does not donate.

NOVAK/HOWARD – MOVED TO AMEND THE TITLE TO READ: A RESOLUTION OF THE CITY COUNCIL OF HOMER, ALASKA, EXPRESSING SUPPORT FOR THE RELAY FOR LIFE OF HOMER AND THE AMERICAN CANCER SOCIETY TO FIND A CURE FOR CANCER IN OUR LIFETIME.

There was no discussion.

VOTE: YES. NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

NOVAK/ZAK - MOVED TO CHANGE THE LAST WHEREAS TO READ: WHEREAS, THE CITY COUNCIL OF HOMER, ALASKA, SUPPORTS THE RELAY FOR LIFE OF HOMER TOWARD THE CAUSE OF FINDING A CURE FOR CANCER IN OUR LIFETIME.

There was no discussion.

VOTE: YES. NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

WYTHE/ROBERTS - MOVED TO STRIKE THE WHEREAS WHICH CANCELS THE $100 DONATION.

There was no discussion.

VOTE: YES. NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

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

Motion carried.

G. Resolution 09-69, A Resolution of the City Council of Homer, Alaska, Approving a Mutual Aid Agreement Between the City and the Kenai Peninsula Borough on Behalf of the Kachemak Emergency Services Area. City Manager.

Mayor Hornaday called for a motion for the adoption of Resolution 09-69 by reading of title only.

NOVAK/ROBERTS - SO MOVED

Council expressed appreciation of the Mutual Aid Agreement and the thoughtfulness that went into it.

Fire Chief Painter commented he thinks the plan will work. The City was adamant going in that we will not be providing the same service to KESA that we have been doing under contract for free. If the HVFD runs more than 20% of KESA calls, monetary compensation is needed. They have made great strides in a short amount of time to make it happen.

Councilmember Howard asked the Fire Chief if he was confident the publicity and public hearings have folks well informed. Fire Chief Painter answered there has been very little public input in the process; we didn’t hear until late in the game they anticipated going independent. Bob Cicciarella has been working diligently with strategic planning. We knew their long term goal was to become independent; if they are ready the next step is to implement and see where it goes. He would like to see more input than three public hearings that were not well attended.

Calls go through Soldotna dispatch and then transfer to Homer dispatch. After October there will be additional dispatchers trained for the call taking. People dial 911 and the system will roll over to Soldotna, an instantaneous transfer, along with GIS information. Mapping will come over the phone line.

VOTE: YES. NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

H. Resolution 09-70, A Resolution of the City Council of Homer, Alaska, Awarding the Contract for the Freight Dock Road Paving Project to the Firm of __________________ of _________________, _______________ in the Amount of $____________ and Authorizing the City Manager to Execute the Appropriate Documents. City Clerk.

Resolution 09-70(S), A Resolution of the City Council of Homer, Alaska, Awarding the Contract for the Freight Dock Road Paving Project to the Firm of Peninsula Asphalt Paving, Inc. of Nikiski, Alaska, in the Amount of $206,396.50 and Authorizing the City Manager to Execute the Appropriate Documents. City Clerk.

Memorandum 09-86 from Public Works Director as backup.

Mayor Hornaday called for a motion to substitute Resolution 09-70(S) for Resolution 09-70.

WYTHE/LEWIS - SO MOVED.

There was no discussion.

VOTE: YES. NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

Mayor Hornaday called for a motion for the adoption of Resolution 09-70(S) by reading of title only.

WYTHE/HOWARD - SO MOVED.

There was no discussion.

VOTE: YES. NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

I. Resolution 09-71, A Resolution of the City Council of Homer, Alaska, Amending the Procurement Manual for the Increase of Capitalization Limitations from $5,000 to $10,000. City Manager/Finance.

Mayor Hornaday called for a motion for the adoption of Resolution 09-71 by reading of title only.

WYTHE/ZAK - SO MOVED.

Councilmember Wythe clarified the amendment transfers items from being a capital expense to become an expense item. It moves things out of capitalization to depreciate over a period of time directing to an expense status if they are over $5,000. It increases the line expense by $5,000 for every item purchased.

ZAK/WYTHE – MOVED TO AMEND ANYWHERE IN THE RESOLUTION 09-71 TO CHANGE $10,000 TO $7,500.

Councilmember Zak explained a 50% increase for inflation is reasonable, rather than 100%.

Councilmember Roberts asked for clarification of the intent of the amendment.

Finance Director Harville explained we currently capitalize purchases of equipment over $5,000. As time and capitalization has gone on we are having to capitalize or account for depreciation for more items.

Councilmember Roberts cannot support the amendment, stating $10,000 is a wiser figure.

VOTE: (AMENDMENT) YES. WYTHE, ZAK

VOTE: NO. ROBERTS, HOWARD, NOVAK, LEWIS

Motion failed.

Councilmember Wythe commented it is increasing the immediate impact to every budget made by every capital item purchased. By moving more money out of capital purchases, items are expensed the year they are purchased, rather than incremental over years.

Finance Director Harville stated when doing the budget, items are listed through the reserves. If you are spending $20,000 from reserves for a police car, that amount is expensed. The capital is not spread incrementally on the budget.

John Bost commented most cities use $5,000 as the capitalization threshold.

Finance Director Harville stated she checked with GFOA and ADEC and found there is a minimum threshold of $5,000 for capitalization; that is not the maximum.

John Bost commented if you buy something with Federal money the threshold is $5,000.

VOTE: NO. LEWIS, ROBERTS, WYTHE, ZAK, HOWARD, NOVAK

Motion failed.

J. Resolution 09-72, A Resolution of the City Council of Homer, Alaska, Approving Amendments to the Emergency Management Communications Services and Related Matters Contract Between the City of Homer and the Kenai Peninsula Borough. City Manager.

Mayor Hornaday called for a motion for the adoption of Resolution 09-72 by reading of title only.

WYTHE/ZAK - SO MOVED.

There was no discussion.

VOTE: YES. NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

COMMENTS OF THE AUDIENCE

Frank Griswold, city resident, commented that the hierarchy chart lists citizens above all. He wonders why members of the public are forced to sit in old dilapidated chairs when the City Council has new ones. When you file APOC papers you will have to say if you support or oppose the ballot measure. It is inappropriate to vote on funds to influence the election. Councilmember Novak misrepresented the APOC vote, as the votes were not listed on the decision. It had to be 3-1 or 4 unanimous against the City. Council has to be careful throwing out misleading information, as it can be easily verified.

Leonard Wells, city resident, thanked Council for their meeting, which was almost not long enough, but will let the Mayor go home. He is glad they decided not to do the $100 donation from City Council and urged taxpayers and non taxpayers to donate to the Cancer Society.

COMMENTS OF THE CITY ATTORNEY

City Attorney Klinkner had excused himself earlier to catch a plane.

COMMENTS OF THE CITY CLERK

City Clerk Johnson had no comment.

COMMENTS OF THE CITY MANAGER

City Manager Wrede thanked Council for their thoughtful discussion on the anaerobic digester pump. His reservations were expressed in Memorandum 09-86 and he wanted to have them on the table. He will try to get more answers. Councilmember Howard’s idea about a water/sewer commission is an excellent idea that he supports.

COMMENTS OF THE MAYOR

Mayor Hornaday invited everyone to the 50^th year celebration dance and food at the Elks Lodge on July 4^th.

COMMENTS OF THE CITY COUNCIL

Councilmembers Novak commented it is clear there are lots of issues, all about finances. Every decision Council makes hinges on money. Recognizing that everything costs money, we have to scale back.

Councilmember Zak thanked Councilmember Howard for the $100 contribution to the Cancer Society. He reiterated what Dennis said about finances. He is happy to see the anaerobic pump resolution, as it is not a major risk. We may get a benefit from stimulus money that may help with water/sewer rates in the future. Mayor Carey commented on the $1M for the Borough and his priority of renewable energy. Homer could become known as the city of renewable energy, with a lot of possibilities for the future. It is a little bit of a risk.

Councilmember Wythe thanked Council for passing the ordinance to allow for funding to educate the voters. She voted against Ordinance 09-02, placing the sales tax on non-prepared food items on the ballot. It is important to help the citizens understand what the exemption costs this year and what the costs would be with the continued tax exemption. She fully supports the community’s decision not to collect sales tax on food, but wants to make sure people understand the implications to the water/sewer fund and general fund reserves. Everything the City does for essential services costs money.

Councilmember Roberts commented they talked about money almost all night. The audit report is interesting, provides a lot of information, and she spent a lot of time looking at it. She offered thanks to the Finance Department on their good work to provide the numbers and figures before us.

Councilmembers Lewis and Howard had no comments.

ADJOURNMENT

There being no further business to come before the Council the meeting was adjourned at 9:58 p.m. by Mayor James C. Hornaday. The next Regular Meeting is scheduled for Monday, July 27, 2009 at 7:00 p.m. The next Committee of the Whole is scheduled for Monday, July 27, 2009 at 4:00 p.m. A Worksession is scheduled for Monday, July 27, 2009 at 5:30 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: ______________________