Session 09-07 a Regular Meeting of the Homer City Council was called to order on March 9, 2009 at 7:13 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 CLERK JOHNSON

CITY MANAGER WREDE

CITY PLANNER ABBOUD

PUBLIC WORKS DIRECTOR MEYER

CITY ATTORNEY SUOZZO

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

Council met as a Committee of the Whole from 4:01 p.m. to 4:52 p.m. Agenda items included Water/Sewer Rates and Regular Meeting Agenda. Council conducted a Worksession from 5:40 p.m. to 7:01 p.m. to discuss the Kachemak Drive Phase II Water/Sewer LID. Jeremiah Drage, Civil Engineer, of Duane Miller Associates LLC and Geoff Coble of Coble Geophysical Services spoke on the drainage and erosion issues on Kachemak Drive.

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 Representative Paul Seaton to Visitors.

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

PUBLIC COMMENTS UPON MATTERS ALREADY ON THE AGENDA

There was no public comment.

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 February 23, 2009 Regular Meeting and February 27, 2009 Special Meeting. City Clerk.

B. Memorandum 09-28, from Deputy City Clerk, Re: Liquor License Renewals for the Grog Shop, Land’s End, Best Western Bidarka Inn, Don Jose’s, American Legion Post 16, Homer Liquor & Wine Co., Boardwalk Fish & Chips.

C. Memorandum 09-29, from Mayor, Re: Reappointment of Gaye Wolfe to the Public Arts Committee and Reappointment of John Velsko to the Prince William Sound Regional Citizens’ Advisory Council as the City of Homer’s Representative.

Mayor Hornaday called for a motion for the adoption and/or approval of the recommendations of the consent agenda as read.

ZAK/LEWIS – SO MOVED.

There was no discussion.

VOTE: YES. NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

VISITORS

A. Representative Paul Seaton

Representative Paul Seaton appeared telephonically. He is exploring ideas to get projects going in Homer, although is not anticipating a lot of capital budget for new projects. The college is a high priority that was identified in the past. In 2006 the Legislature appropriated $2M to the City and $2.5M to the college. With neither the new City Hall or college expansion going forward, there is $1.5M left of the $2M that was allocated to the City. He asked if the City would like to advance the funds to move the college out of the west campus. With new design in mind, the college could build for $4M, the sum of the college’s $2.5M and the City’s remaining $1.5M. It would require a fund re-appropriation to move the college expansion project forward. The capital budget will be weak. There is stimulus money but it would not qualify on this construction.

Mayor Hornaday noted the balance of the $2M allotted for Town Center was $1,493,070.29.

Carol Swartz, Director, Kachemak Bay Campus, said the proposed building would go on the present site and would be built in accordance with the budget they have to work with.

Councilmembers Lewis and Zak were excused by Mayor Hornaday due to conflicts of interest. Both are working for the college. There was no objection from Council.

City Manager Wrede commented on a conversation he recently had with Representative Seaton regarding a building for the college. He understood a cheaper building rather than reduction in size of a building were in the plans.

Carol Swartz noted there are different construction methods to curtail costs, including factory built. The college could be built for less money depending on the method. It would not include Acco trailers.

Mayor Hornaday voiced concern about the increased electrical costs and the need to get after the RCA.

Representative Seaton requested that Council discuss the re-allocation of funds.

ANNOUNCEMENTS/PRESENTATIONS/BOROUGH REPORT/COMMISSION REPORTS

A. Mill Rates/Assessment Methodology for the Kenai Peninsula Borough

Mayor Hornaday attended the weekend presentation on mill rates and assessment methodology given by Bill Smith, Angie Newby and Milli Martin. The information is included in the Council packet.

Bill Smith, Kenai Peninsula Borough Assemblyman, offered a comparison between the City of Kenai and Homer’s mill rate, both being the same. Homer’s total mill rate is higher due to the hospital’s 2.3 mills, whereas the Central Peninsula Hospital area is .9 mills. Last year the Borough mill rate was reduced by a whole mill. He expressed appreciation to Representative Seaton for thinking outside the box. With the $2M appropriated for the stop sign repurposed and the $2.5M for the college repurposed it would provide $6M for City Hall. He is working on the 50^th anniversary of the State of Alaska and taking a history class. He learned the first European to set foot in Alaska was George Stellar, whose birthday is tomorrow, 300 years ago.

Councilmember Zak commented on the presentation by Assemblyman Smith that provided good data, including an explanation of assessments and mill rates.

PUBLIC HEARING(S)

A. Ordinance 09-09, An Ordinance of the Homer City Council Accepting and Appropriating a Fireman’s Fund Insurance Company Heritage Program Grant in the Amount of $7,891 and Authorizing the City Manager to Execute the Appropriate Documents. Introduction February 23, 2009, Public Hearing and Second Reading March 9, 2009.

Memorandum 09-25 from Fire Chief as backup.

There was no public comment.

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

LEWIS/ZAK - SO MOVED.

There was no discussion.

VOTE: YES. NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

B. Ordinance 09-10, An Ordinance of the Homer City Council, Amending Homer City Code Sections 21.61.050 and 21.61.060 to Authorize the City Planner to Determine the Nonconforming Status of Certain Uses and Structures. City Manager/City Planner. Introduction February 23, 2009, Public Hearing and Second Reading March 9, 2009.

Memorandum 09-26 from City Planner as backup.

There was no public comment.

Mayor Hornaday called for a motion for the adoption of Ordinance 09-10 by reading of title only for second and final reading.

NOVAK/ZAK - SO MOVED.

There was no discussion.

VOTE: YES. NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

C. Ordinance 09-11, An Ordinance of the City Council of Homer, Alaska, Amending the FY 2009 Operating Budget by Appropriating Additional Funds in the Amount of $8,748.91 for the Port and Harbor Tug Refit Project. Introduction February 23, 2009, Public Hearing and Second Reading March 9, 2009.

Memorandum 09-20 from Port and Harbor Director as backup.

There was no public comment.

Mayor Hornaday called for a motion for the adoption of Ordinance 09-11 by reading of title only for second and final reading.

WYTHE/HOWARD - SO MOVED.

Councilmember Wythe commented it was good to have the depreciation fund from which to get overflow monies to pay excess expenditures.

VOTE: YES. NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

ORDINANCE(S)

A. Ordinance 09-12, An Ordinance of the Homer City Council, Amending Homer City Code Section 21.03.040 to Add Definitions Related to Off-Street Parking; Amending the Definition of “Parking Space” in Homer City Code Section 21.03.040; Enacting Homer City Code Chapter 21.55, Off-Street Parking; Amending Homer City Code Section 21.70.020 to Provide for Zoning Permit Application Submissions and Regarding Off-Street Parking; and Repealing Homer City Code 7.12, Off-Street Parking. City Manager/City Planner. Recommended Dates: Introduction March 9, 2009, Public Hearing and Second Reading March 23, 2009.

Memorandum 09-30 from City Planner as backup.

Mayor Hornaday called for a motion for the adoption of Ordinance 09-12 for introduction and first reading by reading of title only.

WYTHE/NOVAK – SO MOVED.

ROBERTS/ZAK - MOVED TO AMEND TYPOGRAPHICAL ERROR ON PAGE 208 #8, FROM “ONCE” TO “ONE” PER THREE HUNDRED SQUARE FEET.

There was no discussion.

VOTE: YES. NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

Councilmember Wythe requested a worksession be scheduled for March 23^rd to review the ordinance. It addresses the Town Center rather than business districts in general.

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

Motion carried.

CITY MANAGER’S REPORT

A. City Manager’s Report

City Manager Wrede reported on the successful trip to Washington, DC. He and Councilmember Wythe came back optimistic after meeting with Congressman Young, Senator Begich, and Senator Murkowski and her staff. They met with folks from ICLEI to talk about climate change. They came away optimistic about the 2010 capital budget and the stimulus money, learning where it would be channeled. It may be a month too early to talk to the agencies involved, however, they will have the regulations posted on their website soon. The City will not see any road money; it will all go to DOT. Projects have to meet Federal highway regulations, with projects already on the STIP list and ready to go. There are water and sewer and alternative energy projects for the stimulus money. The information is positive on how they view our projects. There is money in the stimulus package to for drinking water sheds.

While he was gone, City Manager Wrede heard there was a fair amount of news reporting about APOC’s ruling against the City. He was both surprised and disappointed at the ruling, as he thought we had a solid case. It is the most narrow ruling he has seen from APOC. Unless you are going to appropriate money with the intent of influencing voters, the only information presented should be the ballot proposition and statements both pro and con. Council will need to discuss how to proceed on the fall election. The last election was complicated with land trades and sharing infrastructure with both City Hall and the college involved. Council will need to look at getting information to the public in a different manner.

Mayor Hornaday commented in the last Anchorage bond election, an ordinance was specifically passed to allocate funds for it.

B. Bid Report

C. Question of the Week

COMMITTEE REPORT

A. Public Arts Committee

B. Transportation Advisory Committee

C. Permanent Fund Committee

D. Lease Committee

PENDING BUSINESS

A. Ordinance 08-45, An Ordinance of the City Council of Homer, Alaska, Amending the FY 2008 Harbor Reserves Budget by Authorizing the Expenditure of $30,000 for Deep Water Dock Security Gates. City Manager/Public Works.

Memorandum 09-31 from Deputy Harbormaster as backup.

Motion on the floor from November 24, 2008: MOTION FOR THE ADOPTION OF ORDINANCE 08-45 BY READING OF TITLE ONLY FOR SECOND AND FINAL READING.  

NOVAK/ROBERTS - MOVED TO POSTPONE THIS ORDINANCE AGAIN.

There was no discussion.

VOTE: YES. NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

NOVAK/ROBERTS - MOVED TO POSTPONE TO THE SECOND MEETING IN APRIL.

There was no discussion.

VOTE: YES. NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

B. Resolution 09-08, A Resolution of the City Council of Homer, Alaska, Creating the Spit Comprehensive Plan Committee and Authorizing the City Clerk to Advertise for Interested Participants. City Manager/City Planner.

Motion on the floor from January 12, 2009: MOTION FOR THE ADOPTION OF RESOLUTION 09-08 BY READING OF TITLE ONLY.

ROBERTS/NOVAK - MOVED TO POSTPONE THIS RESOLUTION UNTIL WE FINISH THE RFP PROCESS.

City Manager Wrede commented the resolution is timely, as the RFP period has closed. The contract award is scheduled for the next meeting and then a consultant will be on board. Time is needed to establish the committee, with mayoral appointments and Council approval.

City Planner Abboud expressed the need to begin the work early in the season to encompass the parking issues.

ROBERTS/NOVAK – MOVED TO WITHDRAW THE MOTION.

There was no discussion.

VOTE: YES. NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

Discussion ensued on the size of the committee. It is anticipated there will not be more than seven people with two planning commissioners and two port and harbor commissioners.

NOVAK/ROBERTS - MOVED TO AMEND THE 4^TH WHEREAS TO SAY: WHEREAS THE COMMITTEE IS TO WORK WITH THE CONTRACTOR SELECTED TO DRAFT A COMBINATION SPIT COMPREHENSIVE AND PARKING PLAN.

There was no discussion.

VOTE: YES. NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

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

Motion carried.

NEW BUSINESS

None.

RESOLUTIONS

A. Resolution 09-31, A Resolution of the City Council of Homer, Alaska, Supporting Funding for Research Staff Positions at the NOAA Kasitsna Bay Laboratory and Requesting Support from the Alaska Congressional Delegation. Roberts. 

Mayor Hornaday called for a motion for the adoption of Resolution 09-31 by reading of title only.

ROBERTS/NOVAK – SO MOVED.

Councilmember Roberts believes it is important to support the resolution. We have our Climate Action Plan and it is important to study the issues of ocean acidification and the marine ecosystem. It will benefit the community to add more positions in the field office. Kris Holderied, the Manager of the facility is in the audience.

NOVAK/ROBERTS – MOVED TO AMEND TO SWITCH WHEREAS #7 WITH WHEREAS #8 AND AMEND WHEREAS #8 BY DELETING THE WORD “OF” AND REPLACE WITH “ON”.

There was no discussion.

VOTE: YES. NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

NOVAK/ROBERTS - MOVED TO AMEND THE 8^TH WHEREAS TO SAY “WHEREAS, THE KBL PROVIDES FACILITIES TO STUDY THE EFFECTS ON MARINE HABITAT RESULTING FROM OCEAN ACIDIFICATION AND CHANGING CLIMATE PATTERNS WHICH IS IMPORTANT TO SUSTAINABLE COASTAL FISHERIES AND COASTAL COMMUNITIES.”

There was no discussion.

VOTE: YES. NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

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

Motion carried.

City Manager Wrede commented while in Washington, DC, he and Beth talked a lot about the tidal power project. Many were impressed with the in-kind contribution from NOAA. They took the opportunity to hype the lab.

COMMENTS OF THE AUDIENCE

Bill Smith, Kenai Peninsula Borough Assemblyman, reported the Borough Finance Director computed the formula the Federal government uses for PILT (Payments in Lieu of Taxes). The amount of money is based on the amount of acreage. Based on acreage, the City of Homer is entitled to $2.43. He asked the Borough to take another look at it as the impact on community infrastructure is related to more that who owns the mountains. He will request the Borough Manager to meet with City Managers to get some momentum in looking at the project. The Borough received around $3M in Federal funds; a third of that doled out to four cities is $250,000.

Walt Suomela, city resident, owns five lots off Linda Court. As a result of the City’s decision to reclassify his water and sewer rates from residential to commercial it has had a severe impact to him and his tenants. He was enticed into being a landlord, not knowing the water and sewer rates would triple. He asked Council to consider reclassification to residential. He put in separate meters to the buildings with the thought people living there could bear the costs. When the City made the rate changes it had a severe impact, with some people not able to afford to live there. He met with the City Manager earlier and understands water and sewer rates are still an ongoing issue.

Leonard Wells, city resident, commented on the earlier worksession on Kachemak Drive. He questioned if a no response from property owners within an LID are counted as a yes vote. If so, an LID could be set up with very few people saying a written yes. If more than 50% do not respond they become automatic yeses. He questioned how much water the plant produces each year and how much the sewer processes a year. Of the water processed, how much is paid for with actual cash? He is curious how much the free running water at the fish cleaning spots cost each year. Tourists should pay for water and locals would pay for water at fish cleaning tables. He takes his fish caught from the Anchor and Kenai rivers there to clean as he doesn’t have to pay for the water. It would be nice to have a sign to turn the water off, but it is easier not to turn it off.

Kris Holderied, city resident, expressed her appreciation to the Mayor and Council for supporting Resolution 09-31. To those that attended the marine science conference this past weekend, it was an outstanding example how the community works together developing the science necessary to manage our resources sustainably. There are many collaborations in the community between the agencies, teachers and the City.

COMMENTS OF THE CITY ATTORNEY

Attorney Suozzo seconded Walt’s remarks about the APOC issues. Council needs to make sure time is scheduled for discussions and be transparent and conscious of the moves made.

COMMENTS OF THE CITY CLERK

City Clerk Johnson had no comment.

COMMENTS OF THE CITY MANAGER

City Manager Wrede had no comment.

COMMENTS OF THE MAYOR

Mayor Hornaday sends his thoughts and prayers to Regina for the loss of her grandchild. Paul Harvey also passed away, a fine gentleman who always told us the rest of the story. He apologized to PRIDE people after missing their gathering at the park. He was caught up in another meeting. The rumors are starting to fly; yes he has old man’s C.

COMMENTS OF THE CITY COUNCIL

Councilmember Novak stated it was a good worksession with the property owners on Kachemak Drive. Good issues were put on the table. He hopes we can get to the point where we can construct an LID and finish it without additional impact to the hydrology, but making it better than before.

Councilmember Zak expressed appreciation for the support of NOAA. They have done a lot for the community. He hopes they can add more research positions to the lab. The City of Fairbanks set a goal of 4, 40 and 50; In the next four years they want to have 40 new positions, $50,000 or more job related for the community. The more we can find out and look for, the better. There is light coming from higher up. Let’s look for some good things to do and accomplish in Homer.

Councilmember Wythe thanked the citizens of Homer and Council for their support to represent them in Washington, DC. It was a fairly busy schedule, very fruitful and encouraging to talk to the different representatives and their ideas of where money can be found. She is confident we can get some of our projects funded and underway.

Councilmember Roberts thanked Walt and Beth for giving their time for the important trip to Washington, DC. The Kachemak Drive worksession was a fruitful meeting and she is hopeful results can ultimately come.

Councilmember Lewis seconded Francie’s comments. He learned a lot at the worksession. He offered good luck to the Mayor.

Councilmember Howard thanked Council for allowing her to be telephonic for the other meetings. She loves the new electronic Council packet. She thanked Beth and Walt for going to Washington, DC and the audience for listening in.

ADJOURNMENT

There being no further business to come before the Council the meeting was adjourned at 8:05 p.m. by Mayor James C. Hornaday. The next Regular Meeting is scheduled for Monday, March 23, 2009 at 7:00 p.m. The Next Committee of the Whole is scheduled for Monday, March 23, 2009 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: _____________________