Session 01-05, a Regular Meeting of the Homer City Council was called to order at 7:30 p.m. by Mayor Cushing at the Homer City Hall Council Chambers located at 491 E. Pioneer Avenue, Homer, Alaska, and opened with the Pledge of Allegiance.

Council's Committee of the Whole met from 4:05 p.m. to 6 p.m. Agenda Items were the Regular Council Agenda, Discussion of Current Projects and Senate Joint Resolution SJR 16 and House Joint Resolution HJR 18.

PRESENT: COUNCILMEMBERS: CUE, FENSKE, KRANICH, LADD, MARQUARDT, YOURKOWSKI.

STAFF: CITY MANAGER DRATHMAN

CITY CLERK CALHOUN

FINANCE DIRECTOR BAUGH

ACCOUNTING SUPERVISOR MACK

PORT/HARBOR DIRECTOR ABBOTT

POLICE OFFICER I. SHEALY

PUBLIC WORKS DIRECTOR MEYER

AGENDA APPROVAL

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

APPROVED BY CONSENSUS OF THE COUNCIL: Addition of the Road Standards Committee Synopsis of March 5, 2001 and Substitution of City Council Regular Meeting Minutes of February 26, 2001.

PUBLIC COMMENTS UPON MATTERS ALREADY ON THE AGENDA

Mary Griswold commented on the Executive Session and the Kachemak Emergency Service Area (KES). She elucidated a few of the terms of the proposed contract so that the Council would be familiar with what KES is trying to do.

1. KES will pay the City of Homer a one year contract equal to 20% of the fire department expenses. Based on the average call volume outside the City of Homer. KES is very committed to cooperating with the Homer Volunteer Fire Department (HVFD) to keep the volunteers motivated and well trained. KES has a preference to keep the volunteers to together under one supervisor and one set of standards. KES is not promoting moving toward a unified service area, but does want to work with the City to maintain a vital volunteer force to the benefit of KES and the City

2. A volunteer stipend of $30 per night for two volunteers to stay overnight in the fire hall. This would improve the response time both inside the City and outside the City, after work hours when the staff is not in the Fire Department.

3. KES sent out a survey to 1200 area residents and got 300 responses. The results of the survey showed a broad desire for faster response. Sixty people said that they would consider being volunteer firemen and another sixty were willing to talk to KES more. The survey also showed that practically everyone has smoke detectors and most every house in the service area is insured.

4. KES will pay the City $13,100 for mutually agreeable volunteer incentives. KES wants to help make it easier for volunteers to maintain their commitment when faced with increased demand on their time. KES had nothing specific in mind and wants to speak with the volunteers and see what would work the best.

5. KES allocated $6,000 to upgrade the volunteer jump kits with oxygen tanks and masks. The kits cost about $600 each, thus KES would be able to do about 10 kits for volunteer rigs to improve the quality of first response to an incident in outlying areas waiting for an ambulance or fire trucks to come from Homer.

6. KES will allocate $6,000 for public education and prevention programs in the local schools and communities, like the school programs that the volunteer fire department has conducted in the past such as: the health fair, common sense emergency response plan, site inspections, home escape routes and things like this. KES thought that this would be especially helpful since that position was cut from the City's budget. This could be done through the HVFD or KES could take it on. Prevention is a really good priority, cutting down the number of fires helps everybody out.

7. KES will allocate $5,000 for volunteer training programs in addition to those currently scheduled by the HVFD. This could be done through the HVFD or KES could do it independently. KES wants to encourage participation especially from the outer reaches of the KES. KES may want to schedule classes at McNeil, for example, to make it easier for the KES volunteers to attend.

8. KES would like to allocate $3,000 for physical exams for the volunteers, because the Kenai Peninsula Borough thinks this is an important liability issue.

9. KES will budget for equipment, acquisition and maintenance. The plan is to locate 2 brush trucks and 2 first response EMS rigs in the outer lying areas of the KES that could respond directly to an incident, while help is coming from HVFD. The long range plan is to have a larger and smaller station in the western portion and a larger and smaller station in eastern portion of the KES. In the shorter term the plan is to lease heated garages.

10. Total KES budget for FY 2002 is $400,000. The terms of the proposed contract with the City totals about $170, 402. The rest of the KES money is going for garage leases and vehicle acquisition. KES has worked out a payment plan with the KPB and FY 2002 the KES will pay $47,012 on a $341,500 value of equipment; brush trucks and EMS equipment. $65,000 is planned to develop water sources or dry hydrants "further out" to reload tankers.

Ms. Griswold noted the following observation: Direct payment of $115,402 to offset the fire department budget brings the mill levy for City fire suppression down close to the 1.75 proposed mill levy for KES. City residents benefit from better service and lower insurance premiums for the same amount that KES residents will be paying. The assessed value of property within the 200 plus square miles of KES is within dollars of the assessed value of the property within the City of Homer with KES population about 3/4 that of Homer. She advised that better numbers will be out after the census. She voiced her pleasure that the Council is considering the KES proposal tonight.

Nancy Lord, Library Advisory Boardmember, noted that she is not representing the Board and commented on the two consent agenda items that concern the Library, Ordinance 01-11, land bank, and Resolution 01-14, extending a grant. She voiced concern regarding some proposed amendments from the Committee of the Whole meeting. She voiced her understanding that the Council wanted to create a land bank so that any proceeds from the land that is sold from the land bank goes toward purchases of other property. She commented on the proposed amendment to delete using the money for improvements and enhancements that would allow for doing things like erosion control, cutting down dead trees, planting new trees and etcetera. She urged the Council to be clear regarding the meaning of these things so that the citizens know what is meant. She voiced her understanding that Council's intent regarding the library grant, is to ask the state to continue this money that would otherwise expire and to provide some flexibility on how it could be spent for a library. Ms. Lord suggested that Council's amendment request regarding the grant is unclear as to it being for flexibility to do a renovation to an existing building, lease arrangement or to other possibilities. She pointed out that the Library Advisory Board sent a letter to the City Manager on February 13th in which they stated that they are not in favor of relocating the library to the old middle school building and is in favor of pursuing other possible sources of income for building a new library. Some other sources of income noted were annexation and seasonal sales tax. She read portions of the letter into the record noting the Board's reasons for not supporting moving to the Old Middle School and their support of a new library. She reminded the Council that the Board had asked for a worksession with them to brainstorm some new ideas regarding a library.

Abigail Fuller addressed various issues regarding water. She stated that she is not concerned about the threats to cut off the water and that she has a lot more faith in the free enterprise system than in government. She noted that there is a demand for bulk water and that she is sure that if the City does not want to provide this demand someone else will. Ms. Fuller commented on the committee that put in a lot of time and effort developing the current rate structure for water and sewer and that this rate structure was felt to be equitable, simple and easy to adjust as needed. She queried the Council as to why they want to throw all that hard work out the window by adding another charge, this end user fee. She advised that she has read minutes of the committee and of the Council where these rates were discussed and there was no mention of the need for an end user fee and that there was a conclusion that bulk water sales should be handled by contract rather than by trying to control them through awkward ordinances such as these. She made the following comments and inquiries about Resolution 01-12:

• Is the title, "to State the Current Policy Concerning Sale of Surplus Water to End Users Outside the City's Certificated Service Area", supposed to apply to resellers. The City is selling to a business with the point of sale being inside the City, then that business resells the water to someone inside and/or someone outside the City.
• How can the City control water or any other commodity after they have sold it.
• How can the City tell a business who it can and can't have for customers.
• The first whereas clause says that the Council is explaining reasoning and intent. Funny the Council should feel it necessary to do this. Could it be that the Council wants to distance themselves from what was very clearly their intent.
• The second whereas refers to past and present Council's being very generous. Actually past Council's said that it was in the City's interest to sell the excess water regardless of where it went.
• The third whereas clause refers to state funding cuts having a dramatic impact on services. There have been cuts to municipal assistance and revenue sharing. At the same time City tax revenues have been going up. Over the past six years using the City figures in the 2001 Budget the City has seen a net gain in revenue of $366,562, hardly cause for a dramatic impact on services.
• The fourth whereas says that the City should continually examine the services it provides. The City is selling a commodity and not providing a service. She noted that she buys her water from Quick Draw and not from the City. Quick Draw could, in theory, buy the water elsewhere.
• The fifth whereas claims there is much concern that City water is helping growth outside the City. The only concern heard is from certain Councilmembers that cannot wait to impose land use controls and zoning on people that don't want it. Many people settle outside City limits to avoid government restrictions on the use of their land. The City has not sprawled beyond its boundaries. The whole area was settled about the same time and has grown along with and not out from the City. Most people buying property to build on do not give much thought to water source. Bulk delivery is one available option. She would not have settled within the City if bulk water had not been available.
• The sixth whereas claims that development enabled by water competes with property value and business within the City. She relayed conversation with Realtors who said that property value has to do with things like view and that water issues do not noticeably affect relative values of City versus non City properties. Businesses outside the City have significant handicap due to location and are not a competitive threat to City businesses. If the City had not provided water, people would have found another way to get it. Development has been due to other factors besides City water. Many people settle outside the City because they just don't want any part of City government.
• The seventh whereas says that areas desiring municipal services can incorporate. This has not been done because there has been no demand.
• The eighth whereas points out that the private sector could develop water, which has already been done. She voiced her assurance that development will proceed where an entrepreneur thinks there is a profit to be had, regardless of the City's actions. There will be a nice market opportunity if the City quits selling bulk water.
• The ninth whereas claims that the City has had to upgrade the system to accommodate bulk water sales despite requests for more lines. She noted the request that she has repeatedly heard that is for the City to focus on building the outstanding Local Improvement Districts (LIDs) before trying to annex more territory. She reported that she has spoken with several people in these LIDs and none have expressed any objections to bulk water sales. She voiced her opinion that City dwellers would prefer that the City pipe water to their own homes before laying pipe outside the City limits. This has nothing to do with bulk water sales.
• The growth of bulk water sales in the past ten years has been about half the amount that Icicle used.
• In 1999 the total water consumption was 137.5 million gallons as compared to 1990's consumption of 139.5 million.
• It would seem that the City has plenty of excess water and plenty of excess money too, if it is willing to let that excess go to waste when it could be selling it.
• The tenth whereas talks about the City making a show of generosity and good faith. If the City really wanted to show good faith it wouldn't bother to pass these ordinances and resolutions. Why enable shutting off the water at a whim if the Council/City is not planning to do it.

Pete Roberts commented on the two water Ordinances and three water Resolutions. He reiterated his comments that the City has painted itself as an unreliable business partner. If the City was short of water nobody would do anything but agree that you need to cut water off. The City is not short of water, especially right now and this seems to be a very punitive action and sends the wrong signals. He voiced his suspicion that the City makes around $100,000 a year from bulk water sales and the City wants to jack that up by another $30,000 with the $10 end user fee. He voiced agreement with Mrs. Fuller that it is a bulk sale and not to the end user. He likened this to having sheep, they are only fleeced once a year and not skinned, which is a one shot deal and what the Council may be bringing themselves into. He pointed out, as the Council knows, Homer is not considered to be a friendly business climate and they are not sending good messages. He suggested that Council put this on hold and do some more discussing among themselves. He voiced his realization that the Council rarely listens to the public when they say very much and that they certainly see little response back. He commented that since the Council has the role, as government, of being a business partner this is a terrible message to send. Mr. Roberts stated that this will not affect him very much and will affect a lot of other people and may affect the economy of the area.

Warren Plumbo voiced his desire to direct a question to Mr. Roberts ant that he does not quite understand what Mr. Roberts is talking about regarding "a viable business partner". He stated that he keeps hearing how the language the Council uses is negative and that the City should be walking on egg shells so as to not antagonize the people that are not in favor of annexation. He added that he hears that annexation is causing some kind of hardship upon the people against annexation. He voiced his belief that anyone who lives in close proximity to the City is getting many benefits from the City. He repeated comments that the non City residents have stated: That they live outside the City because they don't want to have the control of the City government over their lives. The City is being antagonistic toward the non residents and making negative comments to a viable business partner. Mr. Plumbo stated that he has not seen anything that has been very conciliatory or being a good business partner on the other end. He relayed that the question he would like to ask Mr. Roberts is why he thinks he's such a viable business partner or that his group is such a viable business partner.

Ken Castner addressed the Council regarding the memorandum from the City Manager and Public Works Director about the award of the Kachemak Bay Multi Purpose Ocean Dock project. He suggested that the Council award the first two alternates and that he does not agree that alternate number two can be done later at no cost impact. He elucidated alternate number two, the walkway, and noted that the reason this alternate came so far under the engineer's estimate is that part of the cost of that walk way was born by the prefabricator of the concrete panels to insert sleeves in the panels so that the anchors could be grouted in rather than suspending someone over the side, drilling and putting expansion anchors in. He pointed out that the sleeves will have to be filled either with an attachment or without an attachment, and without the attachment the cost savings is lost. He emphasized that the Council needs to understand that there were four items in the bid that are very likely to be returned as credits and that has to do with the pre bid conference, wherein someone asked what would happen if the pipe had to be over driven. He advised that the result of that was that four bid items were written in to assure a value for over driving, extra splices, and extra pipe costs. He voiced his opinion that the engineer never anticipated that these would have to be done and therefore, would be returned as a credit and more than pay for alternate number two.

City Manager Drathman advised that Public Works Director Meyer is going to recommend that alternate number two also be awarded and suggested that the Council pull Resolution 01-15(A) from the Consent Agenda.

RECONSIDERATION

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.)

Item B., Ordinance 01-11, was placed under Ordinances as Item E. and Item D., Resolution 01-15, was placed under Resolutions as Item. E.

A.(Substituted.) Homer City Council regular meeting unapproved minutes of February 26, 2001. Recommend approval.

B. Ordinance 01-11, Amending Title 18 of the Homer City Code to Require an Inventory and Classification of City Real Properties, to Create a Homer Land Bank and Designate Real Property Classified for Disposal as Homer Land Bank Property, and to Delete the Lease Negotiating Committee and Establish a Land Management Committee; and Further Amending Chapter 3.05 of the City Code to Create in the General Fund a Land Bank Fund to Receive Proceeds from the Sale of Homer Land Bank Properties and Requiring that such Funds are to be used only for the Acquisition, Improvement, or Enhancement of City Real Property. City Manager. Reviewed by Council and Advisory Bodies. Recommend adoption for introduction and first reading with the Public Hearing on 03/26/27/01 and Second Reading on 04/09/01.

C. Resolution 01-14, Of the City Council of Homer, Alaska Requesting an Extension and Amendment to the University of Alaska, Kachemak Bay Campus Consortium Library, Grant No. 97/569-1-001. City Clerk. Finance. Recommend adoption.

D. Resolution 01-15, Of the City Council of Homer, Alaska Awarding the Kachemak Bay Multi Purpose Ocean Dock Project to the Firm of Hurlen Construction Co. Of Seattle, Washington in the Amount of $10,880,000.00 Base Bid with Additive Alternate One in the Amount of $78,000.00 and Authorizing the City Manager to Execute the Appropriate Documents. PWD. City Clerk. Project No. and Account No. 415.904. Recommend adoption.

Memorandum from Public Works as backup.

E. Resolution 01-16, Of the City Council of Homer, Alaska Supporting Senate Bill 59, Relating to Awards of Federal Funds to Municipalities for Road Projects. Mayor. Recommend adoption.

F. Memorandum 01-13, from City Clerk, Re: Request to Change Homer City Council Regular Meeting Date from March 26, 2001, Seward's Day, a Holiday, to March 27, 2001 at 7:30 p.m. Recommend approval.

G. Memorandum 01-14, from City Manager, Re: Dredge Spoils RFP and Minimum Bid Amount. Recommend approval.

H. Memorandum 01-15, from City Clerk, Re: 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 public entity. Fire Service Area and Potential Real Estate Transactions. Recommend approval and conduct under New Business.

I. Memorandum 01-16, from Personnel/Admin. Assistant, Re: Airport Terminal Rental Car Lease. Recommend approval.

J. Memorandum 01-17, from Mayor Cushing, Re: Reappointment of Otto Kilcher to the Port/Harbor Advisory Commission. Recommend confirmation.

CUE/MARQUARDT - MOVED FOR THE APPROVAL OR ADOPTION OF THE RECOMMENDATIONS OF THE CONSENT AGENDA.

VOTE:(Items A., C., and E. - I.) YES: FENSKE LADD, YOURKOWSKI, MARQUARDT, KRANICH, CUE.

Motion carried.

VISITORS

ANNOUNCEMENTS/ PRESENTATIONS/ BOROUGH REPORT/ COMMISSION REPORTS

PUBLIC HEARING(S)

A. Ordinance 01-10, Ordinance 01-10, Of the City Council of Homer, Alaska Accepting and Appropriating a Matching Grant of $68,227.50 through the State of Alaska, Department of Transportation and Appropriating the City's Match of $6,772.50 for an Update to the City's Transportation Plan and Authorizing the City Manager to Execute the Grant Memorandum of Understanding. City Manager. PWD. Account for Revenue and Expenditure: 151-739. City Manager. Public Works. (First Reading 02/26/01, Public Hearing 03/12/01, Second Reading 03/12/01).

There was no public testimony.

ORDINANCE(S)

A. Ordinance 01-03, Of the City of Homer Amending City Code 14.08, Provisions Relating to Resale of Water and Water Filling Station. City Manager.(First Reading 02/12/01, Public hearing 02/26/01, Second reading 03/12/01.)

Amendment Sheet from Councilmember Ladd.

CUE/MARQUARDT - MOVED FOR THE ADOPTION OF ORDINANCE 01-03 BY READING OF TITLE ONLY FOR SECOND AND FINAL READING.

CUE/KRANICH - MOVED TO AMEND ORDINANCE 01-03 (PAGE 122, LINE #56-61) TO REMOVE ITEM F. FROM THE ORDINANCE.

(14.08.105(f) The reporting and record keeping requirements of subsections c. through e. do not apply to resale of bulk water purchased from the City under 14.08.100 when (1) the quantity of water purchased is directly determined by the City and (2) the customer pays the rates established by Resolution of the City Council, including the surcharge, on all such water.)

VOTE:(Primary amendment 1.) YES: KRANICH, CUE, FENSKE, LADD, YOURKOWSKI, MARQUARDT.

Motion carried.

Mayor Cushing noted that item g. will automatically be re numerated to item f.

FENSKE/CUE - MOVED TO AMEND THAT NEW PARAGRAPH G. WOULD SAY: RESELLERS WILL SUBMIT A LIST REFLECTING THE PHYSICAL ADDRESSES OF ALL END USERS WITHIN 30 DAYS OF THE ENACTMENT OF THIS ORDINANCE.

Council expressed concern regarding the effect upon end users, historical once a year end users, historical once in five year end users, tradition occasional end users and how to address these types of end users.

Councilmember Fenske commented that his intent is that an initial list is submitted after 30 days and then there is no more list. The bulk water hauler should include anyone and everyone that water has ever been delivered to.

City Manager Drathman suggested that Council consider a separate ordinance to address this issue.

FENSKE/CUE - MOVED TO AMEND THE AMENDMENT: THAT RESELLERS WILL SUBMIT A LIST REFLECTING THE PHYSICAL ADDRESSES OF END USERS WHO RECEIVED WATER BETWEEN JANUARY OF 1998 AND MARCH 12, 2001 WITHIN 30 DAYS OF THE ENACTMENT OF THIS ORDINANCE.

Councilmember Marquardt noted that there are new subdivisions being developed and new homes presently being built outside the City with the idea that bulk water deliveries will be made.

Mayor Cushing called for a recess at 8:30 p.m., reconvening the meeting at 8:39 p.m.

THE PRIMARY AMENDMENT NO. 2 AND THE SECONDARY AMENDMENT TO IT WERE BOTH WITHDRAWN WITH THE CONSENSUS OF THE COUNCIL.

This end user reporting issue may come back to the Council at a later date.

MAYOR CUSHING CALLED FOR A CONSENSUS TO SUSPEND THE RULES TO WITHDRAW RESOLUTIONS 01-02 AND 01-06 THE COMPANION RESOLUTIONS TO THIS ORDINANCE AS REQUESTED BY THE CITY MANAGER.

There were no objections.

LADD/KRANICH - MOVED TO AMEND TO INCLUDE WITHIN ORDINANCE 01-03 AMENDMENTS PROPOSED BY MYSELF IN SECTION 4. 14.08.130(C) AND (E).

(14.08.130 c. The City Manager may by written order suspend any permit issued under this chapter without prior notice or opportunity to be heard when the City Manager has a reasonable basis to believe that (i) the permittee's permitted facilities or operations are endangering public health or safety, or (ii) permittee is delinquent in the payment of water charges or permit fees owed to the City. If a suspension is imposed under this subsection, the permittee must be notified at the time of suspension and in writing by the City Manager or designee of the an opportunity for a hearing as provided in subsection (b). The hearing must be provided to the permittee within three business days after the date the suspension is effective. A suspension imposed under this subsection may be effective up to one business day after the hearing, or if the permittee requests and is granted a delayed hearing date, until the decision is rendered after the hearing is held.

14.08.130 e. The permittee whose permit remains suspended or revoked following the hearing process as identified in 14.08.130, subsection (b) will be provided written notice by the City Manager or designee of the appeal process as stated in 14.08.140, 14.08.150, and 14.08.160.

Councilmembers Ladd and Kranich stated that this amendment clarifies the process.

VOTE:(primary amendment 3.) YES: FENSKE, LADD, YOURKOWSKI, MARQUARDT, KRANICH, CUE.

Motion carried.

VOTE: (main amended motion) YES: CUE, FENSKE, LADD, YOURKOWSKI, MARQUARDT, KRANICH.

Motion carried.

B. Ordinance 01-06, Of the City Council of the City of Homer, Alaska Amending Homer City Code Chapter 3.16 Procurement. Finance. City Manager.(First Reading 02/12/01, Public hearing 02/26/01, Second reading 03/12/01.)

Amendment Sheet from Councilmember Ladd.

CUE/KRANICH MOVED FOR THE ADOPTION OF ORDINANCE 01-06 FOR SECOND AND FINAL READING BY READING OF TITLE ONLY.

LADD/KRANICH - MOVED TO AMEND ORDINANCE 01-06 PAGE139 AND 130 THROUGH ITEM D.

(3.16.020: Limitation on Manager's authority. a. The Manager may not make an acquisition or contract authorized by Section 3.16.010 of this chapter if the value of the property, service or contract exceeds fifteen ten thousand dollars, without first obtaining City Council approval of the appropriation or unless the property, service or contract is listed in the city's annual budget.

b. If the value of the property, service or contract exceeds ten fifteen thousand dollars but does not exceed twenty five forty thousand dollars, the Manager may authorize the acquisition or contract with the written concurrence of the Finance Director if appropriated funds are available, and upon seeking at least three competitive bids from a minimum of three vendors. The acquisition or contract will be awarded to the lowest responsive and responsible bidder as determined in 3.16.070 and without observing the procedure prescribed for the award of formal sealed bids. Written notice of such an acquisition or contract must be given to the City Council within 24 hours and at the next regular Council meeting.

c. If the value of the property, service or contract exceeds twenty five forty thousand dollars, and is not listed in the City's annual budget, the acquisition or contract must be approved in advance by the City Council.

3.16.030: Open market procedures.

A. Purchase or contracts authorized by Section 3.16.010 having an estimated value that does not exceed forty twenty five thousand dollars may be made in the open market without publishing notice in a newspaper.

B. A purchases or contract authorized by Section 3.16.010 having an estimated value that exceeds ten thousand dollars but does not exceed twenty five less than fifteen thousand dollars shall, be based on at least three competitive written bids and be awarded to the lowest responsive and responsible bidder as determined in 3.16.070 and without observing the procedure prescribed for the award of formal sealed bids.

Strike out "whenever practical" in that particular section.

3.16.060 Exceptions to bidding to bidding requirements, B. Small procurement, below twenty five thousand dollars.

3.16.070 Lowest responsive bidder. d. The bidder performance and payment under previous contract.

The portion "and payment" is struck out.)

There was a brief discussion on requiring three competitive bids in 3.16.030(b) and regarding reducing the proposed increase in the Manager's authority from $15,000 to $10,000. It was noted that the $10,000 and $25,000 figures are more in line with other peninsula cities.

VOTE:(primary amendment 1.) YES: KRANICH, CUE, FENSKE, LADD, YOURKOWSKI, MARQUARDT.

Motion carried.

VOTE: (main amended motion) YES: CUE, FENSKE, LADD, YOURKOWSKI, MARQUARDT, KRANICH.

Motion carried.

C. Ordinance 01-09, Of the City Council Amending Homer City Code Chapter 14.08 to State the Authority of the City Council to Limit or Terminate the Sale of Water for Export or Consumption Outside the City's Certificated Water Service Area. Mayor. Kranich. Yourkowski. (First Reading 02/12/01, Public hearing 02/26/01, Second reading 03/12/01.)

Amendment Sheet from Councilmember Ladd.

KRANICH/YOURKOWSKI - MOVED FOR THE ADOPTION OF ORDINANCE 01-09 BY READING OF TITLE FOR SECOND AND FINAL READING.

There was brief discussion.

LADD/MARQUARDT - MOVED TO AMEND ORDINANCE 01-09, PART B. ON PAGE 143, SENTENCE THAT READS: SUCH ACTION DOES NOT REQUIRE A FINDING OF WATER SHORTAGE, EMERGENCY, OR GOOD CAUSE, BUT MAY BE BASED ON ANY REASONS THE CITY COUNCIL DETERMINES ARE IN THE BEST INTEREST OF THE CITY. AMEND THIS SENTENCE TO READ: SUCH ACTION DOES NOT REQUIRES A FINDING OF WATER SHORTAGE, EMERGENCY, HEALTH CONCERN, OR GOOD CAUSE, BUT MAY BE BASED ON ANY REASONS THE CITY COUNCIL DETERMINES ARE IN THE BEST INTEREST OF THE CITY.

(14.08.074. (b) Notwithstanding, any other provision of this title, the city council may by resolution restrict. interrupt, decrease, or terminate the sale of water for export or consumption outside the certificated. service area whenever the city council determines it is in the best interests of the city to do so. Such action requires a finding of water shortage, emergency, health concern, or good cause, but may be based on any reasons the city council determines are in the best interest of the city. If practicable, the city will give thirty days notice to the public, affected bulk water customers, and resellers of action taken under this subsection, but the failure to give such advance notice will not render the restriction, interruption, decrease, or termination ineffective, nor will it give rise to any claim or action against the city.)

Pros and cons of this amendment were discussed, including potential liabilities with or without the amendment. Council voiced concern that this ordinance is being misconstrued as a hammer or political tool. A question raised is whether or not the town wishes to allow growth out of town that is based, to some extent, on the existing water system and existing simplicity of what the water system is procuring for out of town residents and businesses such as banking, financing, and DEC approvals. There needs to be a clear tool for this Council to be able to restrict or cap the water usage outside the City's certificated area.

LADD/ - CALLED FOR THE QUESTION.

Yourkowski objected to the call for the question.

Mayor Cushing called for a vote.

VOTE:(call for the question)YES: LADD

NO: YOURKOWSKI, MARQUARDT, KRANICH, CUE, FENSKE.

Motion failed.

Lengthy discussion ensued.

VOTE:(primary amendment) YES: MARQUARDT, KRANICH, FENSKE, LADD.

NO: YOURKOWSKI, CUE.

Motion carried.

VOTE:(main amended motion) YES: CUE, FENSKE, LADD, YOURKOWSKI, MARQUARDT, KRANICH.

Motion carried.

D. Ordinance 01-10, Of the City Council of Homer, Alaska Accepting and Appropriating a Matching Grant of $68,227.50 through the State of Alaska, Department of Transportation and Appropriating the City's Match of $6,772.50 for an Update to the City's Transportation Plan and Authorizing the City Manager to Execute the Grant Memorandum of Understanding. City Manager. PWD. Account for Revenue and Expenditure: 151-739.. City Manager. Public Works. (First Reading 02/26/01, Public Hearing 03/12/01, Second Reading 03/12/01).

MARQUARDT/FENSKE - MOVED FOR THE ADOPTION OF ORDINANCE 01-10 BY READING OF TITLE ONLY.

There was no discussion.

VOTE: YES: FENSKE, LADD, YOURKOWSKI, MARQUARDT, KRANICH, CUE.

Motion carried.

E. Consent Agenda Item B. Ordinance 01-11, Amending Title 18 of the Homer City Code to Require an Inventory and Classification of City Real Properties, to Create a Homer Land Bank and Designate Real Property Classified for Disposal as Homer Land Bank Property, and to Delete the Lease Negotiating Committee and Establish a Land Management Committee; and Further Amending Chapter 3.05 of the City Code to Create in the General Fund a Land Bank Fund to Receive Proceeds from the Sale of Homer Land Bank Properties and Requiring that such Funds are to be used only for the Acquisition, Improvement, or Enhancement of City Real Property. City Manager. Reviewed by Council and Advisory Bodies. Recommend adoption for introduction and first reading with the Public Hearing on 03/26/27/01 and Second Reading on 04/09/01.

KRANICH/CUE - MOVED FOR THE ADOPTION OF ORDINANCE 01-11 BY READING OF TITLE ONLY.

Councilmember Marquardt suggested that the Council consider addressing Nancy Lord's concerns.

LADD/CUE - MOVED TO AMEND ORDINANCE 01-11 AS READ BY THE CITY CLERK.

(Amendment 1. Page 25 line 156/157 strike "when required". Page 26 line 216/217 strike "improvement or enhancement" Page 25 line 184 change the word "information " to "approval". Page 22 line 73 change ":should be reviewed": to "will be reviewed". Page 25 line 179 and 182 change the word "should" to "will". Line 184 strike the rest of the sentence after approval. And note the change in the wording on the title as well.)

(3.05.042(d). Monies in the Land Bank Fund are available for appropriation and expenditure only for the acquisition, improvement, or enhancement of city real property.

18.04.070(b). Homer Land Bank property may be sold, exchanged, or otherwise disposed of on terms proposed by the Land Management Committee, subject to applicable requirements of this code or other law, including city council approval. when required.

18.04.090(a) The city manager may adopt written regulations, policies, or procedures to implement this chapter. Prior to adopting such regulations, policies, or procedures the city manager should will seek the recommendations of the Land Management Committee. Such regulations, policies, or procedures will be effective upon the date indicated by the city manager. The city manager should will promptly submit such regulations, policies, or procedures to the city council for its approval. information, but the failure to do so will not affect their validity.

18.04.030(b). The inventory must be kept current by noting any changes in the status of a parcel of property. The inventory should be reviewed will be reviewed and updated annually by the Land Management Committee.)

KRANICH/MARQUARDT/YOURKOWSKI - MOVED TO AMEND THE AMENDMENT TO DELETE THE WORD "ONLY" ON LINE 215 AND HAVE "FOR THE ACQUISITION OF REAL PROPERTY OR IMPROVEMENTS NECESSARY TO PROTECT THE PROPERTY OR ITS VALUE".

(3.05.042(d). Monies in the Land Bank Fund are available for appropriation and expenditure only for the acquisition of real property or improvements necessary to protect the property or its value.)

Councilmember Kranich expressed his opinion that this does address part of Nancy Lord's concerns.

Mayor Cushing asked that the record reflect that the maker of the amendment assumes that "the improvements necessary to protect the property or its value" refers to land bank property.

Discussion continued and Council asked to see the Anchorage's Land Bank Ordinance. City Manager Drathman stated that Ordinance 01-11 is patterned after the Anchorage Ordinance and he would be glad to get a copy for the Council.

VOTE:(secondary amendment 1.) YES: MARQUARDT, KRANICH, CUE, FENSKE, LADD, YOURKOWSKI.

Motion carried.

VOTE:(primary amendment 1. as amended) YES: KRANICH, CUE, FENSKE, LADD, YOURKOWSKI, MARQUARDT.

Motion carried.

Mayor Cushing called for a recess at 9:47 p.m., reconvening the meeting at 9:48.5 p.m.

CITY MANAGER'S REPORT

A. City Manager's Report (Community Development Block Grant for South Peninsula Women's Services Shelter is approved; Fire Chief Bob Painter is appointed as the Alaska Fire Chief's Association Representative to the Alaska State Emergency Medical Services Training Committee; Fire Chief Bob Painter is elected to fulfill the 1st Vice President's position for the Kenai Peninsula Fire Chief's Association; Grant for Purchase of Portable Breath Test Devices; Pending Grant Applications; and Budget Line Correction - Salaries - Public Works.)

B. Bid Report from City Clerk

C. Game Permit Filings

There were no comments.

COMMITTEE REPORT

A. Beach Policy Task Force, February 27, 2001.

Councilmember and Co Chair Cue gave a brief overview of the March 8th meeting.

B. Road Standards Committee, March 5, 2001.

Councilmember and Chair Marquardt advised that the Committee is very interested in the Transportation Study. He advised that the Committee took formal action to recommend that the City Council request the state to re asphalt the lower Lake Street this year and that the Council enter into serious negotiations with DOT on providing crosswalks across the Sterling Highway.

C. Water and Sewer Standards Committee

Councilmember and Chair Fenske gave an update of the status of the Water and Sewer LIDs, assessment methodology and the mailing that has been sent to each water and/or sewer LID property owner.

PENDING BUSINESS

NEW BUSINESS

A. 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 public entity. Fire Service Area and Potential Real Estate Transactions.

Mayor Cushing recessed the Regular Meeting to Executive Session at 10:20 p.m. Council returned to the Council Chambers from Executive Session at 11:53 and the Mayor reconvened the Regular Meeting at 11:55 p.m.

Councilmember Marquardt stated that the Council met in Executive Session regarding matters, the immediate knowledge of which would clearly have an adverse effect upon the finances of the public entity. He further stated that the City Manager brought Council up to speed on the issues and no action was taken.

RESOLUTIONS

A. Resolution 01-02, Of the City Council of the City of Homer, Alaska, Amending the City of Homer Fee Schedule Regarding Water Rates for Bulk Water/Resellers of Water. City Clerk.

PULLED.

B. Resolution 01-06, Of the City Council of the City of Homer, Alaska, Amending the City of Homer Fee Schedule, Water Rates, to Add a Section Regarding End Users, for Residential Units and Commercial Structures. City Clerk.

PULLED.

C. Resolution 01-12, Of the City Council of the City of Homer to State the Current Policy Concerning Sale of Surplus Water to End Users Outside the City's Certificated Service Area. Mayor. Yourkowski. Kranich.

FENSKE/CUE - MOVED TO SUSPEND THE RULES TO TAKE THIS MEETING PAST MIDNIGHT.

VOTE: YES: FENSKE, LADD, YOURKOWSKI, MARQUARDT, KRANICH, CUE.

Motion carried.

FENSKE/CUE - MOVED FOR THE ADOPTION OF RESOLUTION 01-12 BY READING OF TITLE.

FENSKE/CUE - MOVED TO AMEND TO ADD A BE IT FURTHER RESOLVED CLAUSE THAT END USERS BE IDENTIFIED BY PHYSICAL ADDRESS BY BULK WATER HAULERS.

There was some discussion regarding identifying the end users for inside and outside the City's certificated area.

The City Manager noted that this refers to those receiving water by bulk water hauler and not by pipe.

VOTE:(primary amendment 1.) YES: KRANICH, CUE, FENSKE, LADD, YOURKOWSKI, MARQUARDT.

Motion carried.

CUE/LADD - MOVED TO AMEND THE SECOND TO THE LAST BE IT FURTHER RESOLVED TO ADD AFTER "FOR FIRE SUPPRESSION" "OR PUBLIC PROJECTS."

(BE IT FURTHER RESOLVED, that current policies for water to boats or ships at the harbor or water use for fire suppression, or public projects are not being changed at this time by the Council; and)

VOTE: (primary amendment 2.) YES: MARQUARDT, KRANICH, CUE, FENSKE, LADD, YOURKOWSKI.

Motion carried.

KRANICH/CUE - MOVED TO AMEND THE LAST WHEREAS CLAUSE TO CHANGE THE WORD "CUT" TO "RESTRICT" AND CHANGE THE WORD "TO" TO "BY".

(WHEREAS, the Homer City Council, as a continued show of generosity and good faith, desires to make it very clear that their current intent is not to restrict cut current use and amounts to by existing water end users outside of the existing certified water service area, but instead, the Homer City Council desires to start to effect the changes required to address the concerns express in this Resolution.

VOTE:(primary amendment 3.) YES: LADD, YOURKOWSKI, MARQUARDT, KRANICH, CUE, FENSKE.

Motion carried.

VOTE:(main amended motion) YES: CUE, FENSKE, LADD, YOURKOWSKI, MARQUARDT, KRANICH.

Motion carried.

D. Resolution 01-13, Of the City Council, of the City of Homer, Alaska Amending the Procurement Policy and Procedures Manual. Finance

FENSKE/CUE - MOVED TO ADOPT RESOLUTION 01-13 BY READING OF TITLE.

Councilmember Ladd noted his amendments tonight on Ordinance 01-06.

FENSKE/KRANICH - MOVED TO POSTPONE ACTION ON RESOLUTION 01-12 UNTIL OUR NEXT MEETING. (March 27, 2001.)

Postponement will provide time for a clean copy of the procurement manual including all of the applicable amendments from Ordinance 01-06 to be incorporated.

VOTE:(postponement) YES: CUE, FENSKE, LADD, YOURKOWSKI, MARQUARDT, KRANICH.

Motion carried.

E. Consent Agenda Item D. Resolution 01-15, Of the City Council of Homer, Alaska Awarding the Kachemak Bay Multi Purpose Ocean Dock Project to the Firm of Hurlen Construction Co. Of Seattle, Washington in the Amount of $10,880,000.00 Base Bid with Additive Alternate One in the Amount of $78,000.00 and Authorizing the City Manager to Execute the Appropriate Documents. PWD. City Clerk. Project No. and Account No. 415.904. Recommend adoption.

Memorandum from Public Works as backup.

KRANICH/MARQUARDT - MOVED TO ADOPTION RESOLUTION 01-15 BY READING OF TITLE.

KRANICH/CUE - MOVED TO AMEND RESOLUTION 01-15 BY ADDING ALTERNATE NUMBER TWO IN THE AMOUNT OF $74,000.00 TO THE TITLE, THIRD WHEREAS CLAUSE AND TO THE NOW THEREFORE BE IT RESOLVED CLAUSE.

VOTE:(primary amendment 1.) YES: YOURKOWSKI, MARQUARDT, KRANICH, CUE, FENSKE, LADD.

Motion carried.

Mayor Cushing stated that it was tough to see the local bidder⁽¹⁾ lose by less than 0.5% and that they showed a lot of dignity.

Council commented on the local bidder's preference that would not have made a difference in this bid due to the grants and that the local bidder suggested awarding alternate number two.

VOTE:(main amended) YES: KRANICH, CUE, FENSKE, LADD, YOURKOWSKI, MARQUARDT.

Motion carried.

COMMENTS OF THE AUDIENCE

Mary Griswold voiced her appreciation of the Council talking about the KES. She encouraged the Council to provide an indication of their position on the contract proposal at their earliest convenience since KES is in their budget process.

Joy Steward gave a quick report on the Homer Foundation's distribution of the funds that the City allocated:

• $100,920 was allocated with 10% or $10,092 for the City's endowment fund at the Homer Foundation.
• $90,828 was for grants for non profits that serve the residents of Homer
• The foundation developed a grant application and scoring matrix based upon a set of criteria approved by the City Council.
• The seven organizations that submitted requests to the City of Homer prior to December 31st were invited to resubmit on the new application form. $103,850 worth of requests were received.
• The grants review process was conducted by the Homer Foundation's distribution committee which consisted of three foundation trustees - Susan Cushing - Chair, Jack Lentfer and Ann Keefer and two community members at large - Lynn Takeoka Spence and Luke Welles. Committee members were required to be residents of the City of Homer. The Committee made their recommendations to the board of trustees who approved supplementing the City's allocation with an additional $6,072 from the foundation unrestricted fund making a total of $96,600 available for distribution.
• The foundation executed a Memorandum of Understanding with the City of Homer. The City's check was received today, March 12th.
• The following awards have been made: Pratt Museum $78, 270. Homer Council on the Arts $7,200. Homer Community Food Pantry $5,000. Bunnell Street Gallery $1,350. Homer Head Start $2,200. Kachemak Ski Club $1, 280. Nordic Ski Club $1,600.

Ms. Steward stated that the Homer Foundation was pleased to offer their services to ensure a process with both well defined criteria and accountability. She relayed that the foundation applauds the City's efforts to continue to support the invaluable non profit community.

MARQUARDT/CUE - MOVED TO SUSPEND THE RULES TO ASK QUESTIONS.

There were no objections.

Motion carried.

Councilmember Marquardt asked how the whole process was received by the board and the review committee.

Ms. Steward advised that she was staff support and was very impressed with the degree of commitment that the review committee brought to the process. It was a difficult process there being a bit of a transition with this criteria. The grants were reviewed prior to the meeting. It made for a very fair and above board process. By the end of the evening the committee felt very good about their decisions. The Board was very supportive of the Committee's decisions and willing to allocate the additional funds. Only one grantee came back, Homer Head Start, who has to generate $5,000 of community support. Ms. Steward relayed further information given her by Homer Head Start was that there may be a 5% requirement that has to come from the municipal government.

Mayor Cushing interjected that some of this funding may come from the Kenai Peninsula Borough.

Joy Steward responded that she had suggested the borough to Becky Paul, the Head Start local administrator. She concluded by stating that the Homer Foundation appreciates being able to partner with the City of Homer.

Ginny Espenshade commended the Council for the partnership with and process of using the Homer Foundation. She advised that she just finished her state grant writing process that weighed eight pounds and then to turn around and be able to write a Homer Foundation grant on two pages was refreshing. She noted that the Youth Court is not one of the City funded non profits, but does benefit greatly from the foundation. She gave the Council a notice and invitation to the fourth State Youth Justice Conference hosted by the Kenai Peninsula Youth Court. She promised that the next time this Conference comes around in will be in Homer. She reported that there are kids from Homer, Soldotna, Kenai, Nikiski and all the way out to Moose Pass and that there will be about 150 youth from all over the state attending this conference. The first night is Thursday night, March 15th, at the Kenai Senior Center. Ms. Espenshade encourage all or some of the Council to come and welcome the students and adults from all over the state. She emphasized that this is real exciting coming together. There are registrants from Barrow, Nome, Ketchikan, Wrangell, MatSu, Anchorage, Fairbanks and more registrations are coming in every day. The peninsula's youth court is unique in the state in that it includes two different courts, one in Homer and one in Kenai. She stated that having some Officials from Homer for the reception would help to symbolize that partnership and that the Youth Court does bring the peninsula together. She relayed the activities around the tee shirt colors, being designed by the Homer High School Art Club. She advised that it is real fun to get these children together. The reception will have entertainment by local performing groups, hopefully one being the Homer High Jazz Band. The opening ceremonies are Friday morning at the Kenai Central High School Auditorium. She advised that one of the Key Note speakers is a Homer High School graduate, Loren Absher, coming over from Switzerland, a sophomore at Landig University and is somebody that Homer should be proud of. She noted that she and Councilmember Ladd just worked on a partnership wherein they developed a student court at West Homer Elementary. She and Mr. Ladd will be on a panel telling the rest of the state how they accomplished this, because this is the first elementary youth court in the state. There were about forty West Homer Elementary students sworn in, in front of the School Board last Monday night.

COMMENTS OF THE CITY ATTORNEY

City Attorney Tans was not present.

COMMENTS OF THE CITY CLERK

City Clerk Calhoun had no comment.

COMMENTS OF THE CITY MANAGER

City Manager Drathman commended the staff for attending the meetings, being at work early and for the amount of work that they accomplish.

COMMENTS OF THE MAYOR

Mayor Cushing thanked the City Manager for his comments and support regarding the City employees and noted his own observations. He pointed out that 75 City employees produce a lot of work. He commented about people thinking the City is at fault for taking down the state highway sign at the top of the hill, the pot holes on state roads and that it is real easy for folks to think that the City is inefficient. The Mayor commented on the miles of sewer lines, miles of water lines, miles of road, a port, a harbor, a fire department, an ambulance service, administration and so on that the 75 employees maintain and manage. He advised that he had attended a Memorial service and reported the passing of Clark Springer, a good volunteer, Regional President for Ducks Unlimited a National organization, a good advocate for wetlands, hunting advocate and a good person. He relayed that Mr. Springer had retired here in Homer about ten years ago and his wife, Barb, plans to remain in Homer.

COMMENTS OF THE CITY COUNCIL

Councilmember Ladd voiced his disappointment that the local contractor did not win the bid on the Dock Project. He encouraged work on the local preference ordinance to get this into code.

Councilmember Fenske expressed his delight that he is going to be a grandparent again. He stated that he thinks this is really neat and that these are future residents of Homer. He advised that part of his family live inside the City limits and part live in the area that will probably be inside the City limits. He emphasized that it is really neat to see your children come back and make their homes here.

Councilmember Kranich echoed the City Manager's recognition of staff and noted their dedication and support. He voiced his appreciation of the time that staff spends with the Council. He thanked the rest of the Council for the give and take and the action taken tonight especially on the water code changes and that this ended up with some good legislation

Councilmembers Cue, Marquardt and Yourkowski had no comments.

ADJOURNMENT

There being no further business to come before the Council the meeting was adjourned at 12:45 p.m. The next regular meeting is scheduled March 26/ 27th depending on Council Action, 2001 at 7:30 p.m. Committee of the Whole on March 26 or 27 at 4 p.m. Other meetings: Beach Policy Task Force Beach Walk beginning at 11 a.m. on Saturday, March 17, starting at Ocean Shores Motel Parking Lot and walk to Bishop's Beach. Ocean Drive Loop Bluff Erosion Control Project neighborhood meeting at 5 pm. on Monday, March 19th. Water and Sewer Standards Committee Meeting at 7 p.m on Monday, March 19th. Beach Policy Task Force Meeting at 7 p.m. on Tuesday, March 20th.

______________________________________

MARY L. CALHOUN, CMC, CITY CLERK

APPROVED: ______________________

1. Local Bidder was Jay-Brant of Homer.