Session 08-18 a Regular Meeting of the Homer City Council was called to order at 7:00 p.m. on June 23, 2008 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, NOVAK, ROBERTS,                                                                                                      SHADLE, WYTHE

 

                                    ABSENT:                               HEIMBUCH (excused)

 

                                    STAFF:                                   CITY MANAGER WREDE

                                                                                    CITY CLERK JOHNSON

                                                                                    PUBLIC WORKS DIRECTOR MEYER

                                                                                    ACCOUNTING SUPERVISOR MOORE

 

Councilmember Heimbuch has requested excusal. By unanimous consent Council concurred Councilmember Heimbuch had an excused absence.

 

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

 

Council met as a Committee of the Whole from 4:04 p.m. to 5:30 p.m. Agenda items were Mikunda, Cottrell & Co. – 2007 Comprehensive Annual Financial Report, Planning Commissioner Appointments, Ordinances 08-23 and 08-24, and Regular Meeting Agenda items. Council met for a Special Meeting from 5:45 p.m. to 6:11 p.m. to hear the Appeal of Water/Sewer Bill – Leonard Wells.

 

AGENDA APPROVAL

 

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

 

Agenda approved by consensus of the City Council with the following changes:

Reconsideration - City Council’s Decision Affirming the City Manager’s Denial of Frank Griswold’s Public Records Request. Consent Agenda - Resolution 08-69(A), Written public comments; Visitors - Karen Hornaday Park – Proposed Woodard Creek Trail – Written public comments; Announcements/Presentations/Borough Report/Commission Reports - Prince William Sound Regional Citizen’s Advisory Council Report by John Velsko; New Business - Memorandum 08-94, Request for Executive Session Pursuant to AS §44.62.310(C),(1), Matters, the Immediate Knowledge of Which Would Clearly Have an Adverse Effect Upon the Finances of the Government Unit. (Supreme Court Opinion S-12226 Griswold vs. City of Homer.); Resolutions - Resolution 08-70, Written public comments; Resolution 08-76, A Resolution of the City Council of Homer, Alaska, Expressing Concern about the Politicalization of Fisheries Resource Allocation, Requesting the Cook Inlet Salmon Task Force Hold Hearings in Homer, and Recommending that the Task Force Rely Primarily on the Expertise of the Board of Fisheries and Alaska Fish and Game Personnel in Addressing Allocation Issues. Shadle/Economic Development Advisory Commission.

 

 

PUBLIC COMMENTS UPON MATTERS ALREADY ON THE AGENDA

 

Don McNamara, Ocean Drive Loop (ODL) Seawall resident, spoke in opposition of Resolution 08-69(A) and Ordinance 06-53. The special tax district has no procedural due requirements, per AS 29.45.580. The City has not provided a different level of services for maintenance of the seawall, other than offer to collect taxes. The City bought a low maintenance seawall; we now have a failed project. Public Works sent property owners a maintenance repair list with each property owner responsible for their own property repairs. Patching the seawall is not a long-term solution. The wall is in pretty darn bad shape and will fall apart fast. We need to turn this around into a win, win situation. Armor rock, concrete and tetra rods will slow the ocean force down. 

 

Councilmember Novak asked who would pay for the repairs. Mr. McNamara said the homeowners can pay for repairs. He has paid assessments on two properties, $6,000 of which he had to sell property to pay off.

 

Paul Hueper, ODL Seawall resident, spoke on Resolution 08-69(A). The special service district has been in place for a couple of years, and although not perfect, it is the best instrument we are able to work with. It is a unified instrument for one voice to find solutions. Mr. Hueper and almost all the neighbors are in favor of the ODL special service district. He agrees they need to sit down with the City to find a solution. Property owners were given adequate notice of taxation and the money will be given back to the neighborhood to decide what needs to be done. They have formed a Homer Citizens for Erosion Control group and invite others. If they do nothing, they lose it all. The replacement cost is $3M; the wall cost is $1.1 M. It is worth saving and they are working on getting an insurance settlement.

 

Frank Griswold, city resident, opposes Ordinance 08-22. The $50,000 should have been allocated towards the $100,000 already spent on updating the Comprehensive Plan. The Borough has the sole planning authority for the City and they are responsible for all costs. If the City requests planning authority, a competent planner and staff could update the Homer Spit Comprehensive Plan without additional appropriations. We do not need to spend another $50,000 for out of town consultants. The March 2008 update says the Comprehensive Plan is an all inclusive long-range plan for the City and he wonders why the Homer Spit was not addressed more. It disturbs him the 2008 update resembles the 1999 plan, with subtle changes. He compared it with his copy of the 1999 Comprehensive Plan update and noted two major bullets were deleted. One says: strongly discourage the construction of structures below the mean high water line and permanent structures within this area shall be discouraged.

 

Donna Rae Faulkner, ODL Seawall resident, currently owns two properties in the district; one was sold due to financial insecurities. She appreciates Matt Shadle’s intent to rescind Resolution 08-69(A). The resolution is premature, as there is not an instrument in place. She has seen no paperwork, except for the desire for some of the people to be in a homeowners association. There was no public notice of the resolution. They maintain and repair their own properties and are not responsible for others properties. The City made some side agreements during construction of the seawall that they did not agree with. Insurance is huge; they will take care of theirs and would be happy to pay for the city’s insurance policy. There was no collective maintenance and repair agreement, so why join a failed project? An upgrade to the original LID is what is needed for a long-term solution. To be investing in piecemeal repairs is not feasible.

 

Councilmember Novak commented on the seawall, stating either the wall is maintained as a group or piecemeal by individual property owners. If an LID is formed it would need to be along the entire wall so everyone could work together. One section of the wall cannot be maintained without upkeep to the others, as the deterioration will spread. A cooperative agreement is needed to maintain the entire wall; a cooperative organization is the best to work out the issues. The City collects money to provide back to the owners to maintain the wall. The money can go to insurance and for the wall. He has difficulty understanding why all the neighbors cannot work together and realize they all own the wall and it is dependant upon all neighbors.

 

Donna Rae Faulkner responded they have lived with it every day; it is a huge stressor in their lives. When she signed onto the LID she had a number of expectations. She thought it would be a final product. The City didn’t take out builder’s risk insurance and the wall went to pot. The City then decided the wall was complete, yet the project was not complete, it was failed. As it failed property owners said it was not right; the court said property owners own the property and lineal footage. Since their property is at the end of the wall it would be great to be excluded. A longer term solution is needed to protect the whole wall. Funding should be coming from individual property owners to their own linear feet of wall; catastrophic breakdowns need to be borne by the City. It was not right that everyone was consulted when changes were made to affect the contour line of the seawall. She loves her neighbors and hates that this has become a stressful thing. They do not have an unlimited pocketbook.

 

Councilmember Novak asked if money to pay for armor rock and other materials should come from taxes collected from property owners. Donna Rae Faulkner answered another LID to create an upgrade to the wall makes a lot of sense. Currently there is no entity, such as a homeowners association. It could be an LID or special service district. She does not want to be responsible for the things that are currently there or passed that are not their pieces of property or responsibilities.  

 

Larry Goode, ODL resident, noted he has had all the difficulty with breaks in the seawall, one right after the other. The wall is a poor engineering design and he is catching double the grief. They received a $540,000 settlement that was split evenly, as they were all going to stick together. He would have been the first to complain of an unequal distribution, as every time there is a break in the wall he is affected. If there was a break in the wall it could be right down the neighbor’s property line; next thing you know it will be a lawsuit against each other. There is no end to what can happen if everyone is not in it together. Even though neighbors have spoken out against it, he and Paul personally spoke to everyone. He asked Council not to rescind Resolution 08-69(A).

 

Councilmember Shadle asked if Mr. Goode spoke to everyone.

 

Mr. Goode responded he spoke to Doug and Annie, John Jump, and Chris Newby. Paul spoke to Norman Schumacher and John Szajkowski this afternoon. They did not speak to Don and Donna Rae or to Brad and Paula (Dickey), as they know their feelings. They did not speak to Findlay and another neighbor. Everyone understood something needed to be in place.

 

RECONSIDERATION

 

A.        Reconsideration of the City Council’s Decision Affirming the City Manager’s Denial of   Frank Griswold’s April 16, 2008 Public Records Request.

 

Mayor Hornaday called for a motion for the reconsideration of City Council’s decision affirming the City Manager’s denial of Frank Griswold’s April 16, 2008 public records request.

 

Failed for lack of a motion.

 

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 9, 2008 Special and Regular Meeting. City Clerk.                                                                                        

 

B.         Memorandum 08-91, from Mayor, Re: Appointment of Lloyd Moore to the Advisory             Planning Commission and Appointment of Tina Day to the Alaska Statehood      Anniversary Committee.                                                                                   

 

C.        Notice of Intent to Rescind: (Shadle) Resolution 08-69(A), A Resolution of the City      Council of Homer, Alaska Establishing a Mil Rate of Four (4) Mils for the Ocean   Drive    Loop Special Service District. City Manager.                                       

 

Moved to New Business.

 

NOVAK/WYTHE – MOVED TO APPROVE THE CONSENT AGENDA.

 

There was no discussion.

 

VOTE: YES. NON OBJECTION. UNANIMOUS CONSENT.

 

Motion carried.

 

VISITORS

 

A.                 Mikunda, Cottrell & Co. Re: 2007 Comprehensive Annual Financial Report with Audit and Financial Statements

 

John Bost, partner of Mikunda, Cottrell & Co., reported on the 2007 audit. There were 22 journal entries provided by city staff after the start of the audit. Overall the financial statements were clean and correct, in compliance with the generally accepted accounting principals; expenditures and compliance with Federal and State regulations for grants were in order. There were many capital projects in 2007; $1.5 M in streets and sidewalks and $2.2 M for water/sewer projects.  Most of the water/sewer projects are funded by the DEC, thus $1.2M more from the DEC. 2007 was a good year financially, as the General Fund balance increased over $1.1M, even after transfer of $1,010,000 to capital project funds. The last two years the General Fund has increased by $1M; over the last 3 years it has increased by $3M. The increase is due to sales tax increase from 2005, each 1% of the sales tax = $1.6M. Property taxes increased as a result of assessed values and new construction. In 2007 sales tax revenue was 2.5 times what it was 10 years ago; property tax revenue was over 2 times what it was 10 years ago. The General Fund balance is $4.2M undesignated, a healthy fund for a city the size of Homer. The Enterprise Funds are not doing as well; they are in a negative trend. Revenues are increasing each year, but not as much as operating expenses. The Port had an operating loss in 2003 of $744,000 including depreciation; in 2007 the loss was $1,714,000. Depreciation has not increased at all. Water/sewer is not keeping up with the increase in operating expenses. Overall the City is healthy with lots of cash and the funds are all healthy. Effective July 1 with the new PERS system the City will have a stable rate amount and will know what to budget for the future. He thanked the entire Finance staff for their help.

 

Mayor Hornaday commented he is pleased as the first budget he worked on started out with a projected $1M deficit. Three years later we now have $3M revenue over expenditures. He commended Council, Administration and staff for their hard work.

 

B.                 Friends of Karen Hornaday Park, Roberta Highland

 

Roberta Highland, Friends of Karen Hornaday Park and Woodard Creek, presented a proposed project for the park, a trail to parallel Woodard Creek’s west bank in the park. They want to restore some semblance of a natural feeling from the parking lot and more stability to the creek’s bank and land adjacent to the bank by the planting of vegetation. It would be a beautiful asset to the park. 

 

As President of the Kachemak Bay Conservation Society, Ms. Highland reported the society has adopted Woodard Creek as a special project. The upper section of the trail poses no challenges; the lower section will require removal of large quantities of fill from the bank. The fill has been placed there to provide parking for the ball fields. The purpose is to make Woodard Creek more enjoyable and demonstrate and encourage policy for Homer’s natural waterways in the largest park.

 

Jim Preston provided a PowerPoint presentation of the Woodard Creek trail project. Beth Cumming commented the trail and fill activities will take place between the parking lot as it slopes towards the creek. The Council will soon be presented with packets to include the engineer’s report of a cost estimate for taking out fill.

 

ANNOUNCEMENTS/PRESENTATIONS/BOROUGH    REPORT/COMMISSION REPORTS

 

A.        Chamber Economic Development Committee Project Update              

 

B.         Prince William Sound Regional Citizen’s Advisory Council Report by John Velsko

           

Bill Smith, Kenai Peninsula Borough Assemblyman, commented on Mayor John Williams’ proclamation of Weed Awareness Week. It asks for special attention about the importance of keeping invasive plants from the Peninsula. Mayor Williams is going to order contracting agents that all seeding must meet requirements that they be free of invasive species. He suggested City Council follow suit.

 

Kevin Hogan, Economic Development Advisory Commission, thanked Councilmember Shadle for bringing Resolution 08-76 forward. It is time sensitive, as the Legislative Task Force is asked to schedule a hearing in Homer after the salmon season. A presentation was given to the Borough Assembly outlining the economic impact of the commercial fishery. Homer is the number one growth of fisheries value, and second to Kasilof in the number of permit holders.

 

PUBLIC HEARING(S)

 

A.        Ordinance 08-19(A), An Ordinance of the City Council of Homer, Alaska, Amending Homer City Code 21.60 Supplemental Regulations Sign Code. City Manager/Planning. Introduction June 9, 2008, Public Hearing and Second Reading June 23, 2008.

                                                                                                                                   

            Memorandum 08-83, from City Planner as backup.                                         

 

There was no public testimony.

 

Mayor Hornaday called for a motion for the adoption of Ordinance 08-19(A) by reading of title only for second and final reading.

 

WYTHE/ROBERTS – SO MOVED.

 

Councilmember Shadle suggested postponement to the first meeting in August when the new Planner is here.

 

SHADLE - MOVED TO POSTPONE TO THE AUGUST MEETING.

 

Motion died for lack of a second.

 

VOTE: (main motion) YES. ROBERTS, WYTHE, HOWARD, NOVAK

 

VOTE: NO. SHADLE

 

Motion carried.

 

B.         Ordinance 08-20, An Ordinance of the City Council of the City of Homer, Alaska,      Amending the Homer City Zoning Map to Rezone a Portion of the Urban Residential         (UR) District to Residential Office (RO). City Manager/Planning. Introduction June 9,             2008, Public Hearing    and Second Reading June 23, 2008.                            

            Memorandum 08-84 from Acting City Planner as backup.                                

 

Frank Griswold, city resident, commented as to staff comments on pg. 112. The rezone is not an exploration of the Ben Walters Lane area for residential office zoning; it is doing it without exploration. Encouraging infill development will justify any rezone within the city. No specific provision of the Comprehensive Plan was cited and no negative aspects of the plan were addressed. The rezone is not counter to the purposes of protecting the public health safety and welfare. That does not mean the rezone will promote it; it is a twist and a consistent theme lately, twisting the purpose of having the Comprehensive Plan. There is no public need or justification, and it is not in harmony of the Comprehensive Plan.

 

Mayor Hornaday called for a motion for the adoption of Ordinance 08-20 by reading of title only for second and final reading.

 

WYTHE/NOVAK - SO MOVED.

 

There was no discussion.

 

VOTE: YES. NON OBJECTION. UNANIMOUS CONSENT.

 

Motion carried.

 

ORDINANCE(S)

 

A.        Ordinance 08-22, An Ordinance of the City Council of Homer, Alaska, Appropriating             Fifty Thousand Dollars $50,000) from the Planning Reserves for an Update of the Homer         Spit Comprehensive Plan. City Manager/Planning. Recommended Dates: Introduction   June 23, 2008, Public Hearing and Second Reading July 28, 2008.                       

 

            Memorandum 08-81 from City Planner as backup.      

 

Mayor Hornaday called for a motion for the adoption of Ordinance 08-22 for introduction and first reading of title only.

 

HOWARD/SHADLE – SO MOVED.

 

HOWARD/SHADLE - MOVED TO AMEND THE TITLE AFTER APPROPRIATE TO ADD: “NOT TO EXCEED OR UP TO” $50,000.

 

NOVAK/HOWARD – MOVED FOR A FRIENDLY AMENDMENT TO READ: NOT TO EXCEED”.

 

There was no discussion.

 

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

 

Motion carried.

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

 

Motion carried.

 

B.         Ordinance 08-23, An Ordinance of the City Council of Homer, Alaska, Creating an Appointed Board of Ethics in the Homer City Code Section 1.79. Roberts. Recommended Dates:      Introduction June 23, 2008, Public Hearing and Second Reading July 28, 2008.

 

Mayor Hornaday called for a motion for the adoption of Ordinance 08-23 for introduction and first reading by reading of title only.

 

ROBERTS/NOVAK – SO MOVED.

 

Councilmember Roberts explained the intent of the ordinance was to de-politicize the ethics issue. It is a common thing municipalities are looking at. She sees an inactive Board of Ethics comprised of people that have served the city in the past. The board would work in consensus.

 

Councilmember Wythe reaffirmed her support of the ethics concept, but does not support shifting responsibilities from the Council to community members. It is the function of the Council to operate in a manner to police themselves. Council is the body in the community with knowledge of what is going on in the Council and it is up to them to review. Just because decisions may be divisive, part of Council’s function is to enforce regulations amongst themselves. She will vote against the ordinance.

 

Councilmember Shadle commented although Councilmember Roberts mentioned she would like to keep the politics out of ethics, the board would be made up of ex-people involved in politics. The Code of Ethics is a very sacred document. Voters chose the people for Council; to let the Mayor and Council choose the board is not right. The people should vote for the Board of Ethics. Although Councilmember Roberts has been working on the ordinance since October, he cannot support it.

 

Councilmember Novak commented there are valid concepts within the document and he would like to see it introduced for discussion and go to public hearing.

 

Councilmember Howard echoed Councilmember Novak’s comments.

 

Councilmember Roberts voiced her appreciation of the comments and indicated a public hearing would be good. Ethics is an important issue the City has dealt with, and has spent lots of money in the last few years.

 

VOTE: YES. HOWARD, NOVAK, ROBERTS

VOTE: NO. WYTHE, SHADLE

 

Motion failed.

 

C.        Ordinance 08-24, An Ordinance of the City Council of Homer, Alaska, Combining the Conflict of Interest Code 1.12 and the Code of Ethics 1.18 Entitled Conflicts of Interest, Partiality, and Code of Ethics, Chapter 1.18. Roberts. Recommended Dates: Introduction June 23, 2008, Public Hearing and Second Reading July 28, 2008.           

 

Mayor Hornaday called for a motion for the adoption of Ordinance 08-24 for introduction and first reading by reading of title only.

 

ROBERTS/NOVAK - SO MOVED.

 

Councilmember Roberts explained the ordinance will combine HCC 1.12 and 1.18, ethics and conflicts of interest. Both subjects are intertwined, and the intent is to clarify definitions from both sections to clarify what city employees and officials can do in the interest of saving money. The conflict of interest dollar amount was increased to $1,000. Procedures for opting out if a member believes they have a bias are included. Due to the failure of Ordinance 08-23, the Board of Ethics will be reinstated in Ordinance 08-24. City employees are consistently and fairly included to protect their confidentiality. A lot of what is here is not perfect, although it is worthwhile to introduce. Ethics is important and deserves consideration.

 

WYTHE/SHADLE - MOVED TO ADD AN ADDITIONAL PUBLIC HEARING (AUGUST 11, 2008) TO JULY 28, 2008 SO THE SECOND READING WILL BE IN AUGUST WHEN WE ARE BACK WITH A FULL COUNCIL.

 

There was no discussion.

 

VOTE: YES. NON OBJECTION. UNANIMOUS CONSENT.

 

Motion carried.

 

WYTHE/SHADLE – MOVED TO REMOVE ALL REFERENCES TO EMPLOYEES WITH THE STIPULATION THAT STAFF WILL BRING FORWARD THE PERSONNEL POLICIES RELATING TO ETHICS AND PROCEDURES FOR THE CITY EMPLOYEES IN THAT FORMAT.

 

Councilmember Wythe stated personnel policies are a more appropriate place for discussion of personnel issues.

 

Councilmember Roberts agreed to putting it in personnel policies, however, upon examining other policies around the state that is not always the case.

 

VOTE: YES. NON OBJECTION. UNANIMOUS CONSENT.

 

Motion carried.

 

Brief discussion ensued on increasing the conflict of interest dollar amount from $300 to $1,000. 

 

Councilmember Novak asked that the maker of the ordinance provide a substitute ordinance to separate city employees.

 

HOWARD/SHADLE – MOVED TO REMOVE ANY REFERENCE TO THE BOARD OF ETHICS.

 

The ordinance will revert to the existing Board of Ethics. Lines 476 to 500 will be reinserted.

 

WYTHE/HOWARD - MOVED FOR A FRIENDLY AMENDMENT TO REMOVE ANY RECOMMENDATIONS FOR NEW LANGUAGE REGARDING THE BOARD OF ETHICS AND THE RETENTION OF THE EXISTING LANGUAGE FOR THE BOARD OF ETHICS.

 

There was no additional discussion.

 

VOTE: YES. NON OBJECTION. UNANIMOUS CONSENT.

 

Motion carried.

 

WYTHE/NOVAK - MOVED TO AMEND LINE 145, PAGE 161, UNDER THE DEFINITION OF IMMEDIATE FAMILY MEMBERS, MOVED TO STRIKE AUNT OR UNCLE FROM IMMEDIATE FAMILY MEMBERS.

 

There was no discussion.

 

VOTE: YES. NON OBJECTION. UNANIMOUS CONSENT.

 

Motion carried.

 

Councilmember Roberts was asked to look at the percentage of the community that would be considered a large class, so it is reasonable in size of the community. (Page 163, Line 218)

 

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

 

Motion carried.

 

D.        Ordinance 08-25, An Ordinance Revising Homer City Code Chapter 1.80 Concerning Disclosure of Public Records. Novak. Recommended Dates: Introduction June 23, 2008, Public Hearing and Second Reading July 28, 2008.                                      

 

NOVAK/SHADLE – MOVED TO INTRODUCE ORDINANCE 08-25 BY READING OF TITLE.

 

Councilmember Novak explained the ordinance will more clearly define procedures for requests and responses for disclosure of information. It will more fully define what information is exempt from disclosure. It closely follows Borough Chapter 2.54 access to public records and consideration of State Article 01, Section 40.25.100 in copying of public records. Cities do have the authority to create exemptions based on need; exemptions fall in line with Borough and State ordinances.

 

WYTHE/NOVAK – MOVED TO AMEND ON PAGE 184, STARTING WITH LINE 222: STRIKE “ADOPT” AND REPLACE WITH “ESTABLISH” AND PRIOR TO THE PERIOD AT THE END OF THAT SENTENCE TO ADD: “THE COUNCIL SHALL REVIEW AND APPROVE SUCH REGULATIONS”.

 

There was no discussion.

 

VOTE: YES. NON OBJECTION. UNANIMOUS CONSENT.

 

Motion carried.

 

WYTHE/NOVAK – MOVED TO AMEND LINE 14 OF PAGE 1: INSERT THE WORD “OF” BETWEEN “INTERESTS” AND “THE”.

 

There was no discussion.

 

VOTE: YES. NON OBJECTION. UNANIMOUS CONSENT.

 

Motion carried.

 

CITY MANAGER’S REPORT

 

A.        City Manager’s Report

 

1.      City Attorney Selection Schedule / Plan: The closing date for City Attorney proposals is Friday, June 20. At the time this report was written, there were nine firms on the plan holders list. We anticipate that a few more will arrive. It would be good if the Council spent some time at this meeting talking about how to proceed. You will recall that Gordon will be on vacation for several weeks in July and then he plans to leave the State in August. So time is of the essence. It would be good if Gordon were still here to go over the existing case load and transfer files to the new attorney. I got the impression that the Council wanted to review and score these proposals as a group and not by Committee. So, the Clerk and I would suggest that the Council schedule a Special Meeting as soon as is practical to do so. You can establish the rest of the process at that meeting.

2.      City Planner Hired: I have offered the position of City Planner to a gentleman named Rick Abboud. Rick accepted the offer on Monday of this week and I anticipate he will be on the job prior to August 1. This was a very difficult choice and the City was fortunate to have several very qualified candidates who I believe would have done a good job for the community. But we are fortunate to get Rick and I look forward to welcoming him to Homer and working with him. Rick has spent the past four years as the City Planner in Bethel, Alaska. He has a Masters Degree in Public Administration, a Masters Degree in Urban Studies, and undergraduate degrees in Community and Economic Development. 

3.      Port Update: You may have noticed how busy the port was this past weekend, especially the Deep Water Dock. The port of Anchorage was basically closed for a period due to a large military deployment. Many tugs, barges, and other vessels were diverted to Homer and spent time tied up to the Deep Water dock taking on supplies and transferring cargo. This was a big revenue boost for the Port and Harbor Enterprise Fund. It also highlights one of the City’s primary arguments for expanding the Deep Water Dock; that Homer is a back-up for the Port of Anchorage in times of emergency or when Anchorage may be closed or inoperable for some other reason.

4.      Sulfur Shipments: This project is going very well so far. We have had no significant problems and no complaints about the truck traffic that I am aware of. Some harbor users were not real happy with the new traffic pattern and restricted access to some parts of the 30 acres, but I think the Harbor Staff have done an excellent job addressing those issues.

5.      Water Treatment Plant: Things are going well at the construction site. Everything seems to be on schedule. No problems so far.

6.      Spit Water Tank Repairs. Public Works staff members made the repairs to the spit water tank that were recommended by the engineer. This week Carey issued a notice to proceed on the sanding and painting contract.

7.      Trails Construction Standards Manual: You may recall that Council appropriated money to do a construction standards manual for trails in the community. We signed a contract this week with the City’s contract engineer, Bill Nelson, to complete this work. Bill will be subcontracting with trails experts. The idea is to establish standards for different types of trails (ADA, etc) similar to what the City has for roads.

8.      Security at Deep Water Dock: The Coast Guard is putting increasing pressure on the City to establish upgraded security measures at the Deep Water Dock. Carey and Bryan are working on a design and cost estimate for a security fence. We will have more information for you soon but we may need to appropriate some money for this fence if we are not able to locate grant funding.

 

City Manager Wrede pointed out the preliminary draft of the proposed budget schedule in the Supplemental Agenda. He asked Council to review the schedule; it will be finalized at the July 28th meeting. The first budget discussions will be at the July 28th Committee of the Whole.

 

Councilmember Novak inquired of the space availability at the airport for concessions. City Manager Wrede and Airport Manager Hobbs discussed the need to go out with another RFP. He acknowledged the letter from Mr. Heath Smith. Unfortunately, the season has passed, as DOT needs to approve the lease and that process may take up to two months or longer. Both Mr. Smith and Ms. Thompson have more information to provide with the next RFP.

 

Councilmember Shadle asked what was happening at the Deep Water Dock with all the boats in town. City Manager Wrede explained last weekend the Port of Anchorage was closed due to a military deployment. Currently there is a big cargo ship in town to load the first shipment of sulfur bags.

 

Councilmember Wythe asked about security at the Deep Water Dock. City Manager Wrede responded that the Coast Guard is requiring a fence at the dock for security measures. Originally the City had a grant to provide security at both docks, the Coast Guard changed their mind and some of the grant money was returned. The Coast Guard is now threatening to fine the City if some security is not implemented. We are using our own staff and ship owners to provide some security; barricades are being used as well. The Coast Guard is happy with the measures. An ordinance will be forthcoming July 28th to appropriate funds for a fence. We will look for money from Homeland Security.                                                                               

 

B.         Bid Report                                                                                                      

 

C.        Question of the Week                                                                                      

 

COMMITTEE REPORT

 

A.        Comprehensive Plan Community Advisory Committee

 

B.         Public Arts Committee

            (July 17, 2008 Worksession 10:00 a.m. and Regular Meeting 11:00 a.m.)

 

C.        Transportation Advisory Committee

            (July 15, 2008 Regular Meeting 5:30 p.m.)

 

D.        Permanent Fund Committee

            (October 9, 2008 Regular Meeting 6:00 p.m.)

 

E.         Lease Committee

 

Mayor Hornaday called for a recess at 8:29 p.m. and resumed the meeting at 8:37 p.m.

 

PENDING BUSINESS

 

None.

 

NEW BUSINESS

 

A.        Memorandum 08-90, From City Manager Re: Sale of Old Library Property / Lot 2.

 

Mayor Hornaday called for a motion for the approval of the recommendations of Memorandum 08-90.

 

WYTHE/SHADLE – SO MOVED.

 

Discussion ensued on the need for Memorandum 08-90, as Resolution 07-105 authorized the sale of Lot 2. The memo was the result of discussion at the June 9th council meeting as to when the lot should be sold.

 

Councilmember Novak believes Lot 2 should be sold at the best time, and now may not be the best time. He acknowledged Resolution 07-105 was passed with the intent to pay down the proceeds of the new library when the lot was sold. The land is on the list of city-owned property and we are not compelled to sell it immediately.  

 

Councilmember Wythe recognizes the desire to hold on to the lot longer, due to the current real estate market, but said it should have been sold last summer. Every day we continue not paying down the loan we continue paying interest. What is the cost of the interest and holding onto the lot hoping to make more money? When Council moved into the process of building the library many years ago there was a firm commitment from Council they would eliminate the properties and pay down the loan. Council made the decision when Resolution 07-105 passed and we need to follow through and pay the library loan down as quickly as we can to reduce the interest we are paying.

 

Councilmember Shadle called for a point of order. If the motion fails, it means we will not have to sell the lot. He does not see how it will stop the sale of the lot. If council wants to vote on the resolution to not sell, it would halt the sale.

 

The minimum bid is to be the appraisal price.

 

VOTE: YES. ROBERTS, WYTHE, SHADLE, HOWARD

VOTE: NO. NOVAK

 

Motion carried.

 

B.         Memorandum 08-92, From City Clerk Re: Travel Authorization for Mayor’s Attendance at Alaska Municipal League Summer Legislative Meeting in Wrangell, Alaska, August 27-28, 2008.            

 

Mayor Hornaday called for a motion for the approval of the recommendations of Memorandum 08-92.                                                            

 

WYTHE/SHADLE – SO MOVED.

 

There was no discussion.

 

VOTE: YES. NON OBJECTION. UNANIMOUS CONSENT

 

Motion carried.

 

C.       Memorandum 08-94, Request for Executive Session Pursuant to AS §44.62.310(C),(1),        Matters, the Immediate Knowledge of Which Would Clearly Have an Adverse Effect          Upon the Finances of the Government Unit. (Supreme Court Opinion S-12226 Griswold    vs. City of Homer.)                                                                              

 

Mayor Hornaday called for a motion for the approval of the recommendation for Executive Session to discuss Griswold vs. City of Homer.

 

WYTHE/SHADLE – SO MOVED.

 

There was no discussion.

 

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

 

Motion carried.

 

Council recessed to Executive Session at 8:44 p.m. and reconvened the Regular Meeting at 9:00.

 

Mayor Pro Tempore Novak stated Council discussed the Supreme Court Opinion S-12226 and gave direction to the City Attorney. A document will be forthcoming.

 

D.        Notice of Intent to Rescind: (Shadle) Resolution 08-69(A), A Resolution of the City      Council of Homer, Alaska Establishing a Mil Rate of Four (4) Mils for the Ocean   Drive    Loop Special Service District. City Manager.

 

Mayor Hornaday stated the item was on the agenda as an item of intent to rescind. He asked City Clerk Johnson if it was appropriate to take action on this. City Clerk Johnson responded Councilmember Shadle voiced his notice to rescind and a motion to rescind may be made and voted upon.

 

Mayor Hornaday called for a motion to rescind.

 

SHADLE – SO MOVED.

 

Motion died for lack of a second.

 

SHADLE – MOVED TO TABLE.

 

Mayor Hornaday stated the motion to rescind failed. City Clerk Johnson affirmed this was correct. Councilmember Shadle asked if he could move to postpone or discuss. City Clerk Johnson stated only if there were an approved motion to rescind could there be a reconsideration made.

 

RESOLUTIONS

 

A.        Resolution 08-70, A Resolution of the City Council of Homer, Alaska, Expressing its   Support for a Comprehensive Beluga Wetland Hydrologic Study. City Manager/Roberts.

 

Mayor Hornaday advised Council Amy Bollenbach asked if the audience could comment on the resolution.

 

ROBERTS/NOVAK – MOVED TO SUSPEND THE RULES TO HEAR PUBLIC COMMENTS.

 

There was no discussion.

 

VOTE: YES. NON OBJECTION. UNANIMOUS CONSENT.

 

Motion carried.

 

Amy Bollenbach, Kachemak Drive resident, favors Resolution 08-70 and thanked City Manager Wrede and Councilmember Roberts for its introduction. It is a wonderful example of various government agencies cooperating. She hopes Kachemak Drive can avoid drainage issues with the study. She called herself a nerdy type of citizen who would vote for bond issues and tax increases due to confidence in the City. On Kachemak Drive DOT made a mistake by paving and compacting the road. It is a big mistake to put sewer in and do further construction without a further study.

 

Dr. Vickey Hodnick, Kachemak Drive resident, said it would be nice to get approval from the Mayor and City Council for the study, as it is important to all. It is very wet on Kachemak Drive with all the rain. The Alexander’s have not been in touch with the City recently; May 7th they lost seven ft. of bluff where it now touches their front porch. Additionally property values have gone down 50% where they were last Fall. Alexander’s home and hers have straight line fissures with a lot of water coming out. Lambert Lake level has been holding steady. For all that live there it is imperative to find out how to reverse the damage so they can plan on living there a long time.

 

Elaine Burgess, Kachemak Drive resident, lives in Phase II Water/Sewer improvements. She supports the resolution and would like to see City Council’s support as well. It is a fine example of cooperation between many governmental agencies to address significant erosion.

 

Mayor Hornaday called for a motion for the adoption of Resolution 08-70 by reading of title only.

 

ROBERTS/NOVAK – SO MOVED.

 

Councilmember Wythe is not opposed of the study, but has reservations about the language, as it takes a strong position on the part of the City. The City Council cannot act, regardless of how others feel. She does not want to place the City in a position to accept responsibility of what happens to Kachemak Drive properties. We still go through issues of the seawall, and struggle with the fact the City became involved.

 

WYTHE/NOVAK – MOVED TO FULLY STRIKE THE 2ND WHEREAS.

 

Councilmember Roberts stated the City having a strong invested interest in protecting the property in Homer does not obligate the City financially or legally. Mayor Hornaday referenced the seawall experience. Councilmember Wythe said the vested interest implies you are willing to accept responsibility.

 

VOTE: YES. NOVAK, WYTHE, SHADLE, HOWARD

VOTE: NO. ROBERTS

 

Motion carried.

 

WYTHE/NOVAK - MOVED TO AMEND THE 4TH WHEREAS TO READ: WHEREAS A COMPREHENSIVE BELUGA WETLANDS HYDROLOGIC STUDY MAY ASSIST IN THE DEVELOPMENT OF VIABLE SOLUTIONS.

 

There was no discussion.

 

VOTE: YES. NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

 

WYTHE/ROBERTS – MOVED TO AMEND THE FINAL WHEREAS TO STRIKE THE WORD “NOW”.

 

There was no discussion.

 

VOTE: YES. NON OBJECTION. UNANIMOUS CONSENT.

 

Motion carried.

 

WYTHE/NOVAK – MOVED TO AMEND THE NOW THEREFORE BE IT RESOLVED TO STRIKE THE WORD “STRONG”.

 

There was no discussion.

 

VOTE: YES. NON OBJECTION. UNANIMOUS CONSENT.

 

Motion carried.

 

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

 

Motion carried.

 

B.         Resolution 08-71, A Resolution of the City Council of Homer, Alaska, Accepting the 2007 Comprehensive Annual Financial Report with Audit and Financial Statements and Acknowledging the Management Letter Submitted by the City’s Independent Auditor, Mikunda, Cottrell & Co. and Authorizing the City Manager to Execute Financial Report. City Manager.

 

Mayor Hornaday called for a motion for the adoption of Resolution 08-71 by reading of title only.                                                                                

 

WYTHE/SHADLE - SO MOVED.

 

There was no discussion.

 

VOTE: YES. NON OBJECTION. UNANIMOUS CONSENT.

 

Motion carried.

 

C.        Resolution 08-72, A Resolution 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 2009 Regular Election Ballot Instead of the October 2008 Regular Election Ballot as Authorized by Resolution 06-63. City Manager.       

 

Mayor Hornaday called for a motion     for the adoption of Resolution 08-72 by reading of title only.

 

WYTHE/NOVAK – SO MOVED.

 

There was no discussion.

 

VOTE: YES. NON OBJECTION. UNANIMOUS CONSENT.

 

Motion carried.

 

D.        Resolution 08-73, A Resolution of the City Council of Homer, Alaska, Approving and Accepting the Renewal of the Jail Service Contract for FY 2008 with the State of Alaska in the Amount of $416,244.00 and Authorizing the City Manager to Execute the Appropriate Documents. City Manager/Police Chief.                               

 

            Memorandum 08-93 from Police Chief as backup.

 

Mayor Hornaday called for a motion     for the adoption of Resolution 08-73 by reading of title only.                                         

 

ROBERTS/WYTHE - SO MOVED.

 

Mayor Hornaday commented in the future the Council should consider demanding the State pay the full cost, an additional $200,000.

 

VOTE: YES. NON OBJECTION. UNANIMOUS CONSENT.

 

Motion carried.

 

E.         Resolution 08-74, A Resolution of the City Council of Homer, Alaska, Expressing that the Homer City Councilmembers will Continue to Adhere to HCC 1.18 Code of Ethics and Follow Through with Specific Actions that are Adopted through the Resolutions and Ordinances of the City Council of Homer, Alaska. Shadle.          

 

Mayor Hornaday called for a motion for the adoption of Resolution 08-74 by reading of title only.        

 

SHADLE/WYTHE – SO MOVED.

 

Councilmember Shadle stated he brought the resolution forward from the discussion on the library at the last meeting. He would like to do what we say.

 

VOTE: YES. HOWARD, WYTHE, SHADLE

VOTE: NO. NOVAK, ROBERTS

 

Motion failed.

F.         Resolution 08-75, A Resolution of the City Council of Homer, Alaska, Awarding the Contract for the Purchase and Installation of Five Mobile Radios to the Firm of Revl Communications & System of Anchorage, Alaska in the Amount of $24,999.42 and Authorizing the City Manager to Execute the Appropriate Documents. City Manager/Fire Chief.     

 

Mayor Hornaday called for a motion for the adoption of Resolution 08-75 by reading of title only.

 

WYTHE/SHADLE - SO MOVED.

 

There was no discussion.

 

VOTE: YES. NON OBJECTION. UNANIMOUS CONSENT.

 

Motion carried.

 

G.        Resolution 08-76, A Resolution of the City Council of Homer, Alaska, Expressing       Concern about the Politicalization of Fisheries Resource Allocation, Requesting the Cook   Inlet Salmon Task Force Hold Hearings in Homer, and Recommending that the Task          Force Rely Primarily on the Expertise of the Board of Fisheries and Alaska Fish and             Game Personnel in Addressing Allocation Issues. Shadle/Economic Development          Advisory Commission.                                                             

 

Mayor Hornaday called for a motion for the adoption of Resolution 08-76 by reading of title only.

 

SHADLE/NOVAK – SO MOVED.

 

Councilmember Shadle stated the Board is invited to come to Homer after the season for a voice in the community. Meetings are held far to the north; this will bring them to Homer and also stimulate the economy.

 

Councilmember Wythe asked in the correspondence that follows, we would stress the fact that the hearings are to be held after the salmon season.

 

VOTE: YES. NON OBJECTION. UNANIMOUS CONSENT.

 

Motion carried.

 

COMMENTS OF THE AUDIENCE

 

Heath Smith, city resident, expressed his dissatisfaction and disappointment with the actions of the City in the RFP process for the car rental concession lease at the airport. Sandra Thompson’s relationship will not change. It is the City’s right to promote diversification. The Thompson’s have a business in the airport and wish to expand their business. There is a method to do that through their lease. They do not need to tie up a competitor’s spot. He requested Council direct city staff to move forward with this process. A new RFP will not accomplish or change who Sandra Thompson is. Mr. Smith wants to see the process respect those that participate. His intent is to conduct business, and do it well, and be a mainstay of the community. It is a three year commitment and this season is far from over.

 

Dean Ravin, Homer resident, referenced the auditor’s report. The City is enjoying revenue 2.5 times greater revenue than the last five years. The General Fund balance has increased by $3M in the last three years. The audit said it was mostly due to increased sales tax since 2005, with “lots of cash”. He asked Council to cease city taxation of groceries and give the bread tax back. Revenues are up, the City is flush, now is the time. The City is enjoying windfalls of revenues from liquid fuel tax and now is the time to give back the food tax. We don’t have to wait for the Borough.

 

Frank Griswold, city resident, commented on Ordinance 08-25. The purpose is not really to more clearly define disclosure procedures, it is to create additional exemptions to further restrict public disclosures. Councilmember Novak did not cite the source of his authority “cities have the authority to write exceptions based on a need.” He asked what criteria the City intends to apply regarding the need. Changes to intent to policy (1.80.010) is disturbing. Mr. Griswold read deletions to the code. He stated if passed, it is now no longer the intention of the City to provide full and free access of the public to municipal records. People should be very disturbed about that. Line 44, public records should be defined, not by reference to the Alaska Statutes. Line 102 regards disclosures of information to matters of litigation that may be threatened. Case law establishes a mere threat of litigation is insufficient; the litigation must be pending. Line 232 allows fees to be assessed in addition to the City’s actual cost. It eliminates no fees are charged when a person requests access to information. His request was deemed to be harassment. Line 285 deletes the requirement that the City Manager provide a slip setting forth the specific provision of law exempting disclosures. People should have a right to know the exact reason for a denial. Line 298 should provide a specific time for appeal.

 

Councilmember Roberts questioned Line 289, a brief written explanation will be given by the City Manager. Mr. Griswold answered it should be clear why the request is being denied.

 

Don McNamara, city resident, thanked the Mayor and Council for their effort. He thanked Councilmember Shadle for bringing Resolution 08-69(A) back to the table. He asked the protocol for getting a resolution on the agenda.

 

Mayor Hornaday told Mr. McNamara to talk to a councilmember.  

 

Don McNamara stated Resolution 08-69(A) went through with no public notice at all. One of the councilmembers is under the impression the City is not at fault for the seawall. The City was acting as a general contractor on a failed project. He asked for an explanation and how the City is going to be represented in the homeowners association and maintenance.

 

Mayor Hornaday stated he would make no comments in response to questions on the seawall.

 

Councilmember Shadle asked Mr. McNamara to tell Council and the Mayor how much notice he was given. Mr. McNamara responded about five hours.

 

Leonard Wells, city resident, questioned why the Council went into Executive Session on the appeal. He doesn’t understand how anything could be discussed that was not public information.

 

Donna Rae Faulkner, city resident, expressed her disappointment and the feeling of being disrespected in the process. There was good intention in the beginning of the seawall. She was provided with less than five hours notice of Resolution 08-69(A). She asked if it was good city policy for the City Manager to email a letter to Larry Goode a couple hours before the meeting. She understands why she doesn’t speak to things in public anymore. The City is the owner of the largest chunk of the seawall, linear footage wise. She feels abandoned as they have very little voice. She asked Council to think about a more permanent solution, possibly an LID.

 

COMMENTS OF THE CITY ATTORNEY

 

City Attorney Tans was not present.

 

COMMENTS OF THE CITY CLERK

 

City Clerk Johnson had no comments.

 

COMMENTS OF THE CITY MANAGER

 

City Manager Wrede had no comments.

 

COMMENTS OF THE MAYOR

 

Mayor Hornaday stated he was pleased with the increased budget of $3M from a $1M deficit. Governor Palin is coming to Homer on Thursday, June 26th. She will be at Islands and Ocean Visitor Center at 4:00 p.m.

 

COMMENTS OF THE CITY COUNCIL

 

Mayor Pro Tempore Novak commented it was a good meeting with some accomplishments and some issues. He is troubled with the seawall, as it keeps coming back. It is not the City’s fault. Although he appreciates what Don and Donna Rae are doing with their property, everyone will have to work together to make it work. That is the only way it will be successful and maintained as a viable wall. It is not the City’s job to coordinate or direct that; it is the homeowner’s job. He hopes it can resolve itself.

 

Councilmember Shadle said when you bring something forward and it is not seconded the public does not get to hear discussion. Openness is better than closed; in the future he would like to see discussion. Today we didn’t get to discuss what went down at the last council meeting. The process was flawed, as people were not notified properly. He is very disappointed this Council did not want to talk about it.

 

Councilmember Wythe commented while the audit indicates a high level of cash on hand, there are areas extremely deficient in income. Port and Harbor and Water/Sewer are losing money; $300,000 additionally each year with substantial shortfalls. Cash on hand reserves allowed for transfer exceeding $1M for items that otherwise would have gone uncovered. We have been working diligently for the last three years to get the Reserve Account up to what the auditors consider a standard and acceptable reserve. We tried to shoot for the six-month reserve. With today’s economy that would be a benefit in the coming years. The sales tax increase was developed for future costs to place us in a secure position when those come up. We can cover the expenses. We still have extremely under-funded depreciation, with the Port and Harbor losing revenues and not even increasing their depreciation reserves. The purpose of funding the depreciation account is to ensure when we have maintenance we have cash on hand. We have been working diligently on the financial reserve and have worked a little on depreciation, but it is not adequately funded. If we had funded depreciation properly we would have not have had to ask for that much money for City Hall. We can’t afford to update the Port and Harbor to raise costs. She does not want the community to think we are not looking at the whole picture. We are charged with looking at the financial picture down the road.

 

Councilmember Roberts stated she would not have voted to rescind the resolution on the seawall. If Council had done that, nothing would happen for another 1 ˝ years to gather money for the people. She heard the urgency in maintaining the seawall. She attended the Parks and Recreation walk through of the Karen Hornaday Park. She saw where the proposed trail will go. She was  heartened to hear the Parks and Recreation Advisory Commission intends to come through with a master plan for the park. We need commissioners on the planning commission; everyone needs to help to make Homer go forward.

 

ADJOURNMENT

 

There being no further business to come before the Council the meeting was adjourned at 9:43 p.m. by Mayor James C. Hornaday. The next Regular Meeting is scheduled for Monday, July 28, 2008 at 7:00 p.m. The next Committee of the Whole is scheduled for Monday, July 28, 2008 at 4:00 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: _____________________