Session 08-13 a Regular Meeting of the Homer City Council was called to order at 7:00 p.m. on May 12, 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: HEIMBUCH, HOWARD, NOVAK, ROBERTS, SHADLE, WYTHE (telephonic)

STAFF: CITY MANAGER WREDE

CITY CLERK JOHNSON

CITY PLANNER MCKIBBEN

Councilmember Wythe has requested telephonic participation.

Mayor Hornaday called for a motion to allow telephonic participation by Councilmember Wythe.

NOVAK/ROBERTS – SO MOVED.

There was no discussion.

VOTE: YES. NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

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

Council met as a Committee of the Whole from 4:00 p.m. to 5:10 p.m. Agenda items included: Pros/Cons of a Full Time City Attorney/Assistant City Manager Position, Sales Tax Exemption on Food Items and Regular Agenda items. Council met for a Worksession from 5:30 p.m. to 6:30 p.m. to discuss Legal Services.

AGENDA APPROVAL

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

The agenda was approved by consensus of the City Council with the following changes:

Announcements/Presentations/Borough Report/Commission Reports - Mayor’s Proclamation – National Hospital Week; Memorandum 08-69 from Finance Director, Re: Council Report & Treasurer’s Report; and Homer Senior Citizens Announcement of Dedication and Ribbon Cutting for: Bartlett Terrace Senior Housing. Public Hearing(s) - Ordinance 08-12(S)(A) – Written public comments; Ordinance 08-15 – Memorandum 08-67 from Clerk, Re: Fiscal Impact of Ordinance 08-15 to Election Costs; Ordinance 08-16(S) – Memorandum 08-68 from Finance Director, Re: 2008 Financial Analysis; Ordinance(s) - Ordinance 08-18 – Kenai Peninsula Borough written comments. Resolutions - Resolution 08-56 – Memorandum of Understanding between the City of Homer and Kachemak City; and Resolution 08-60 – A Resolution of the Homer City Council Confirming the Appointments of Regina Harville as Treasurer and Laurie Moore as Deputy Treasurer for Calendar Year 2008.

PUBLIC COMMENTS UPON MATTERS ALREADY ON THE AGENDA

There were no public comments.

RECONSIDERATION

A.        Resolution 08-31, A Resolution of the City Council of Homer, Alaska, Amending the Community Design Manual. City Manager/Planning. Reconsideration issued April 30, 2008.

Memorandum 08-37 from City Planner as backup.

Councilmember Roberts issued reconsideration April 30, 2008.

Councilmembers Shadle and Novak excused themselves from a prior declared conflict of interest.

Mayor Hornaday called for a motion to reconsider Resolution 08-31.

ROBERTS/HEIMBUCH - SO MOVED.

There was no discussion.

VOTE: YES. NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

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 April 28, 2008 Regular Meeting. City Clerk.

B. Memorandum 08-60, from Deputy City Clerk, Re: New Liquor License – Beluga Lake Lodge.

C. Memorandum 08-61, from Mayor, Re: Reappointment of Stephen C. Smith to the Transportation Advisory Committee and Appointment of Shelly Erickson to the Economic Development Advisory Commission.

NOVAK/WYTHE - MOVED TO APPROVE THE RECOMMENDATIONS OF THE CONSENT AGENDA.

There was no discussion.

VOTE: YES. NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

VISITORS

A. Derotha Ferraro – South Peninsula Hospital

Derotha Ferraro, South Peninsula Hospital Marketing Coordinator, provided a PowerPoint presentation of the new hospital area. The grand opening was attended by over 400 people. The Certificate of Need has been secured and Jay Brant Construction was awarded the $13.2M construction contract. The Critical Access Hospital Status is in the final steps. The hospital has formed a partnership with Safeway for Recipe for Health, weekly newspaper columns and discounted specials.

New faces at the hospital include Robert Letson, CEO, Malisa Mudgett, CFO and Radiologist Jeffrey Quam, MD. There is a new Board of Directors and an almost all new Hospital Service Area Board.

SPH is focusing on customer satisfaction. Customer surveys, monthly specials and a 20% prompt pay discount are offered. A nationally mandated survey provided a 25% return rate, with 97% of the people surveyed recommending the hospital. Community benefit is $227,000 (free information and impact provided to community), $2M in sales tax and 280 employees.

B. John Shively – Pebble Partnership

John Shively, Pebble Partnership, has lived in Alaska since 1965, spending his early career with Alaska Native corporations, serving Governor Sheffield as his Chief of Staff, Governor Knowles as Commissioner of Natural Resources, and Holland/America Cruise Line. The Pebble Partnership is in the pre-feasibility stage of the project, looking at the resource, what it will take to develop it, what protections are needed, what investment is needed, operating costs and whether it is an economic project. To date there is no project. If the project is feasible, it will progress to the permitting process which may take two to three years. There are 11 different state and federal agencies and 67 permits to apply for. This year $140M will be spent; $60M in drilling to determine a better idea of resource, $30M on engineering, $25M on environmental studies and $14M on community relations. Most of the work is taking place at Iliamna with 150 people there in a variety of direct employment and a number of consultants doing environmental studies. A release of data will occur prior to the permitting process.

Mr. Shively took the job knowing the project was controversial, with opposition. He saw the potential for opportunity in an economically depressed area of the state. If the project is successful, there are lots of opportunity for jobs, Native corporations, and for energy. The owners, Northern Dynasty from Vancouver B.C. and Anglo American from London wanted an Alaska face on the project. Bristol Bay fishery is a huge resource for the state and Mr. Shively is not prepared to trade one resource for another. If there is a way to economically build the project and provide environmental protection, the state deserves to look at the opportunity. There is a lot of opposition to the project although it is not yet designed. The project needs the opportunity to meet the high standards to protect the fishery. Anglo American has worldwide experience, with tools used to develop mines and opportunities, jobs, working with communities and environmental issues. The Keystone Group has been engaged as an independent stakeholder, who will provide an independent view of what the Pebble Partnership is doing. It will take time to get the stakeholder process going.

Three to four hundred megawatts of power will be needed for the mine. It has already been determined power will not be generated by diesel at the mine site. The preferred alternative is imported LNG (Liquefied Natural Gas). The project could drive a bullet line from the North Slope. A variety of different approaches may be used with a potential for hydro power. If low cost power is brought to the mine, it must be brought to the region. It is hoped the state will participate. If we walk away at the end of year saying the mine will not make it economically, we will have made a major contribution of scientific study. Small Native corporations will have developed expertise. The challenge is to design something that works, has environmental protection and is economically viable.

Asked how it will affect Bristol Bay, Mr. Shively answered it will not affect any fish. The project cannot be built if there is any damage to fish; it is not responsible. Data is listed on both the Pebble Partnership and State of Alaska webpage. Asked about preliminary design work in the permitting process, Mr. Shively answered there will be a road design, power option and tailings design in order to get the permit.

C. Tina Day – Homer Chamber of Commerce

Tina Day, Homer Chamber of Commerce Executive Director, Mary Tricamo-Park, Chair of Homer Chamber of Commerce Economic Development Committee (HCEDC), and Mark Gregory, Kenai Peninsula Small Business Development Center (SBDC) made a funding request to assist the HCEDC in a partnership with SBDC. The HCEDC will encourage growth of public and private partnerships. The goal is to put in place a local business counselor, approximately 20 hours per week versus the current two days offered per month. It will create economic stimulus and a platform for new business development. The SBDC has obtained a grant to fund the position to include benefits and training. Assistance of a 50% match from the City is requested. That match would help fund workshops and training forums with field experts and expansion of a business research and resource library, workforce development and training opportunities and educational outreach. The goal is to create a business incubation program to help start up companies off the ground and assist entrepreneurs. The hope is to cultivate apprenticeships, internships, and mentoring programs for our younger generation. Alternative funding will be explored to continue the efforts.

Mark Gregory has served Homer’s small business community over the last decade. A $37,550 match is requested for 2009. The HCEDC is a strong advisor made up from members across the community. The SBDC brings a family of programs including a procurement technical assistance center, buy Alaska program, and provides technology resource and development. The SBDC provides services free of charge to small businesses. Surveys and ongoing monitoring of client progress is provided. Funding is currently through the Small Business Administration at 38%, 16% through the State of Alaska through UAA and 47% from the Kenai Peninsula Borough. Over the last ten years, 620 clients have been served in Homer, 3.42 hours with each client. Based on the two day per month schedule no additional clients may be served. Small business in Homer is a major economic development provider.

Councilmember Heimbuch asked what type of businesses would not be recommended for Homer. Mr. Gregory responded clients can make their own decisions after given proper education. Councilmember Heimbuch said for the Chamber to be successful there needs to be ideas of encouragement. Mr. Gregory reiterated providing people the opportunity for their own research will have a more powerful effect.

Councilmember Roberts asked if the cities of Soldotna and Kenai are contributing? Mr. Gregory responded the SBDC is regionalizing right now throughout the state to develop the resources. The SBDC is providing $37,550 at this time. Asked if someone relocating to Homer could use the services, Ms. Day answered they could use all resources at no charge.

D. Steve Yoshida - Thailand Group

Steve Yoshida presented visitors from Lampang, Thailand and suggested the City of Homer consider them as a future Sister City. Currently the City has one Sister City in Japan and one in Russia. The Teshio, Japan city is experiencing hard times, which equals less activity. There is room for Sister City relations with another country. Delegates from Lampang were introduced and a slide show of their country was shown. They presented Mayor Hornaday with gifts.

Mayor Hornaday called for a recess at 8:17 p.m. and reconvened the meeting at 8:22 p.m.

ANNOUNCEMENTS/PRESENTATIONS/BOROUGH REPORT/COMMISSION REPORTS

A. National Hospital Week - May 12-16

B. Peace Officer Memorial Day – May 15, 2008 and National Police Week May 12–19, 2008

Mayor Hornaday commented the city-wide cleanup was successful and he thanked all that participated. The Shorebird Festival was a success; he may have had the first sighting of a California sea lion on Glacier Spit. The State Elks are coming to Homer. A number of Rotarians went up to Soldotna for the District Rotary meeting. The Pioneer book, volume II is out. Mayor Hornaday was asked to write something for the book.

PUBLIC HEARING(S)

A. Ordinance 08-12(S)(A), An Ordinance of the City Council of the City of Homer, Alaska, Amending Homer City Code Title 21 (Zoning) Adding Chapter 21.57 to the Homer City Code Creating the Scenic Gateway Corridor Overlay District to Further Regulate Development Along the Sterling Highway from Rogers Loop on the Baycrest Hill to the Intersection of the Sterling Highway and Pioneer Avenue. City Manager/Planning. Postponed from March 24, 2008, Introduction April 28, 2008, Public Hearing and Second Reading May 12, 2008.

Memorandum 08-38 from City Planner as backup.

Councilmembers Novak and Shadle excused themselves from a prior declared conflict of interest.

Bryan Zak, city resident, lives on Baycrest Hill along the Sterling Highway. He is opposed to the Scenic Gateway rezone, as it is a taking of land from people. When you take away rights it either reduces or adds to the value of the property. In this case it reduces the value of 150 ft. on either side of Sterling Highway. There has not been enough consideration of what the State or City could do to work with landowners.

Leonard Wells, city resident, does not see a need for a change to the zoning law in the area. It doesn’t add anything for property owners and never considers it a public need. It is only for the possibly to keep the Scenic Gateway from looking offensive. You purchase a view and since the City isn’t purchasing land they should not be doing anything with it.

Matt Shadle, city resident, is an investor in the area. If the City is so worried about the Scenic Gateway they could start with power poles and lines. Don’t limit people to uses of their property. It is a taking. He got legal counsel of his own. He doesn’t want to bite the bullet, so bought a building permit so he cannot be affected. What about other property owners who did not buy a building permit? If the Scenic Gateway is so wonderful why take the top of the hill out of it? Why not make the whole city part of the Community Design Manual? Do not nitpick on people and make one area a certain one. Mr. Shadle questioned Councilmember Howard’s conflict of interest as a prior planning commissioner who voted in favor of the plan. In Councilmember Shadle’s view she most definitely has a bias if she has already voted in favor. If you have to ask, then don’t vote.

Dean Ravin, Homer resident, stated the Scenic Corridor Gateway provides preferential mistreatment of landowners.

Emmitt Trimble, Anchor Point resident and property taxpayer, opposes Ordinance 08-12(S)(A). It will further regulate development along the Sterling Highway. There are already regulations in place, as all of that property with the exception of new Gateway Business District was created as an alternative to the Central Business District because it had not been used as Rural Residential. Uses are prohibited without a Conditional Use Permit. In a number of places the ordinance refers as an attempt to regulate or restrict, when the conflict between the underlying zoning is more acceptance of restrictive zoning. Why did not the Central Business District cover everything? It should be rezoned to make it less restrictive; more restrictions could be placed with deed restrictions. If uses are only restricted in the 150 ft. you could do anything 150 ft. away from the highway. All of these things are restricted in Rural Residential.

Dennis Novak, city resident and property owner in the Gateway District, stated the intent of the Overlay District is to preserve things we value in the community. It is not as excessive as it originally was. It was pared down significantly. It does define the Gateway Corridor from the top of the hill down to Pioneer Avenue. Concepts are worth incorporating into the rest of the restrictions in the lower area of West Hill. It will not be overly restrictive; it will be better. The area will be enhanced.

Mayor Hornaday called for a motion for the adoption of Ordinance 08-12(S)(A) by reading of title only for second and final reading.

ROBERTS/HEIMBUCH – SO MOVED.

Councilmember Roberts noted the boundary is limited to 150 ft. and preserving the vista is important to Homer’s identity. Originally the Gateway did not have a potential for businesses; property owners have gained something.

Councilmember Wythe pointed out the original boundary was 300 ft. on either side of the road and included any piece of property that fell within the entire lot. Power lines are in the right-of-way and are not governed and regulated by the City of Homer. Relocating them would be at the expense of the community. Although the ordinance may not be perfect, it is of reasonable intent.

Councilmember Heimbuch voiced his objection to the ordinance without deletions of prohibited uses.

HEIMBUCH/WYTHE - MOVED TO REMOVE LINE 73: OPEN AIR BUSINESS, LINE 77: WELDING AND MECHANICAL REPAIRS AND LINE 78: STORAGE AND SALE OF BUILDING SUPPLIES, MATERIALS AND EQUIPMENT FROM THE LIST.

Councilmember Roberts asked for clarification.

Beth McKibben, City Planner, stated most of the district originally included General Commercial 1 (GC1), Rural Residential (RR), Urban Residential (UR), Gateway Business District (GBD) and Central Business District (CBD). The prohibited uses were from the less desirable uses you may find in all of those areas. Most of the uses are not permitted in the RR, UR or GBD anyway; if they are not permitted in the underlying district they are not permitted in the Overlay District. With the change in boundaries many were issued moot. Councilmember Heimbuch’s motion makes no net change. Amendments to the boundary made by the Planning Commission removed the top of the hill from city limits to Rogers Loop that includes GC1 zoning. She commented some refer to it as a taking from some people, although that is an individual’s opinion. The City Attorney reviewed the ordinance and had no concerns as to taking. The majority of prohibited uses are not permitted in the Scenic Gateway Corridor Overlay District (SGCO) today. They are permitted in the GC1 District which is no longer part of the SGCO District. Asked what the propriety of holding issuance on a zoning permit pending the whole assessment of the ordinance’s impact, City Planner McKibben answered the ordinance does not do very much. It prohibits certain uses in the SGCO District; most are not permitted in the underlying districts today. This ordinance and the Community Design Manual have almost no impact on single family development.

Councilmember Heimbuch referenced the corner store at Pioneer Avenue and the Sterling Highway that does watch repair and welding of jewelry. He stated they could not hang the sign out in the GBD. City Planner McKibben answered she would not consider it as welding and repair, as it is a jewelry store. Councilmember Roberts stated her interpretation of mechanical repair is repair of cars, vehicles and large trucks. Councilmember Heimbuch referenced the different businesses, a jewelry store with a trashy place versus a mechanic with a spotless workshop. It is the gorgeousness of the view we are trying to protect.

VOTE: YES. NON OJBECTION. UNANIMOUS CONSENT.

Motion carried.

Councilmember Howard defended her position to vote. Twice she has received notice from the City Attorney her work is legislative and she would be able to vote. She does not support the ordinance, even though the Planning Commission worked long and hard on it. It is not the best legislation the City could pass. Council is in a quandary, not understanding the ordinance as well as they should. When in doubt, the answer is no.

HEIMBUCH/WYTHE - MOVED TO POSTPONE CONSIDERATION OF ORDINANCE 08-12(S)(A) TO THE FIRST MEETING IN OCTOBER.

Councilmember Roberts expressed concern in postponement with the summer season approaching. Councilmember Heimbuch stated he is not willing to see all the work thus far on the ordinance go down the tubes.

VOTE: YES. WYTHE, HOWARD, HEIMBUCH, ROBERTS

Motion carried.

B. Ordinance 08-15, An Ordinance Amending Homer City Code Chapter 1.24 and Title 4 to Provide for the Election of City Council Members to Designated Seats. Novak. Introduction April 28, 2008, Public Hearing and Second Reading May 12, 2008.

There was no public testimony.

NOVAK/HEIMBUCH – MOVED TO ADOPT ORDINANCE 08-15 BY READING OF TITLE.

Councilmember Novak expounded the reasons behind designated seats. It will make for a more interesting process, as candidates will be competing against each other for one seat. They may want to sharpen their points and issues. For the next election there are two 3-year seats and one 2-year seat for Council. A candidate may choose who they are running against, or choose another seat. If two people file for one seat they did it for a reason. It will give candidates the choice. Unlike the HEA Board or KPB Assembly designated seats, you can vote for every seat. It would give the full power of a vote.

Councilmember Howard thanked the Clerk’s office for supplying research on the question of increased election costs for designated seats.

Councilmember Wythe voiced opposition to the ordinance, as anything that is done to the ballot to reduce, diminish or eliminate the choice of the electorate is a decision on the voters’ behalf. Homer has a very intelligent community that is able to make reasonable choices on their own without half of the choice being predetermined for them. If a candidate has to sharpen their knowledge and terminology to compete against other candidates, they are going to have to work a lot harder. They will have to know everyone’s position and address themselves against all candidates. It is not in the best interests of the community as a whole.

Councilmember Roberts stated she has thought about the ordinance after discussion on disenfranchising the voter from the last meeting. Every ballot she has ever voted on has a write-in option, allowing a voter to write someone in for another office. She favors the ordinance.

Councilmember Wythe commented that write-in votes are not looked at, unless it is a very close race. City Clerk Johnson confirmed this.

Discussion ensued on the lack of language to address no candidates filing for open seats. The last two elections of the Hospital Service Area Board required appointments due to lack of candidates.

NOVAK/HOWARD - MOVED TO POSTPONE TO THE NEXT MEETING TO ADDRESS THE ISSUE JUST BROUGHT UP.

There was no discussion.

VOTE: YES. HEIMBUCH, ROBERTS, HOWARD, NOVAK

VOTE: NO. WYTHE, SHADLE

Motion carried.

C. Ordinance 08-16(S), An Ordinance Establishing a Program for Residency Incentive Credit Payments to Adult Residents of the City. Heimbuch. Introduction April 28, 2008, Public Hearing May 12, 2008 and Second Reading September 8, 2008.

There was no public testimony.

Second and Final Reading scheduled for September 8, 2008.

ORDINANCE(S)

A. Ordinance 08-17, An Ordinance of the City Council of Homer, Alaska, Accepting and Appropriating Alaska Highway Safety Program Grants for Seat Belt Enforcement, DUI Enforcement and Two New Radar Guns and Radar Instructor Training and Authorizing the City Manager to Execute the Appropriate Documents. City Manager/Police Chief. Recommended Dates: Introduction May 12, 2008, Public Hearing and Second Reading May 27, 2008.

Memorandum 08-65 from Police Chief as backup.

Mayor Hornaday called for a motion for the introduction and first reading of Ordinance 08-17 by reading of title only.

HEIMBUCH/NOVAK – SO MOVED.

There was no discussion.

VOTE: YES. NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

B. Ordinance 08-18, An Ordinance of the City Council of Homer, Alaska, Providing for Temporary Adjustments of the City Sales Tax Rate of Levy. Heimbuch. Recommended Dates: Introduction May 12, 2008, Public Hearing and Second Reading May 27, 2008.

Mayor Hornaday called for a motion for the introduction and first reading of Ordinance 08-18 by reading of title only.

HEIMBUCH/ROBERTS – SO MOVED.

Councilmember Heimbuch explained the ordinance is another tool if a decision is reached for a tax rate deduction. It will provide a seasonal sales tax rate reduction of 2% through the winter months, October through March. Compared to the residency incentive credit, this will apply to all people doing business inside the City.

Councilmember Shadle expressed his support for a tax reduction. Of the business owners he has spoken with, a seasonal business tax would drive them bonkers. Business owners would have to keep adjusting their register, and he does not think it’s fair to have them do so.

Councilmember Roberts views the ordinance as a break to year round people and believes it is not that difficult to adjust rates.

NOVAK/HEIMBUCH – MOVED TO AMEND TO CHANGE THE SECOND READING TO SEPTEMBER 8.

The KPB Borough would ask for an effective date of January 1^st.

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

Motion carried.

Councilmember Heimbuch noted Council does not yet have good data on where we are. The information from Finance reflects a $140,000 property tax increase and $80,000 sales tax increase. We do not yet know if the fluctuations are reflections of commodity amounts or in costs of things. If changes in sales tax and property tax revenues are simply due to increased costs, we are doing fairly well in the City at the expense of people. We will still be wondering if we should protect the City. If we find out the public is subsidizing the increases, we will need to sharpen our pencils at budget time. By September we will have a better idea where we are financially.

Mayor Hornaday commented on the City’s $300,000 of increased costs in energy and the water system. There may not be any excess money.

Councilmember Novak pointed out the predicted property tax gain is not correct as many people are protesting assessments and the Borough is reassessing them.

Councilmember Heimbuch said if we find out the people of Homer are uneasy about the excess income, we are going to have to find money to cut in the budget. We cannot hold the City harmless through any kind of fiscal wind that blows through town.

Councilmember Wythe expressed appreciation the ordinance was postponed to September for discussion. It is a time to be cautious, as at what cost are we leaving money in the consumers’ pockets? At the cost of services they would like to have. She has a real concern when councilmembers speak in terms that imply the Council is garnering funds from the community for the benefit of the City, somehow making it a wrong thing to do. Council is charged with the running of the business of the City by the voters of the City. They expect Council to safeguard their investment. When we fail to properly collect and reserve funds we are not safeguarding their investment. We may feel all warm and fuzzy inside because we gave a tax reduction, but to have to go back at a worse time in the economy and ask for that money plus more to protect their investment, we have done a poor job. She takes it personally when councilmembers make it sound like Council is doing something wrong in meeting required reserve standards. Council is not doing their fiscal responsibility to the community when they are not reserving funds as directed by financers and Federal code. Council needs to make sure they are doing the full job, not just the one that feels good today.

Councilmember Heimbuch retorted the public doesn’t vote on public services, the Council does. We fight over what is proper all the time. People don’t jump up and down to save services; they ask what we are spending money on. The GATS Accounting Standards are recommendations that don’t necessarily reflect the financial reality of many cities. It is not one-sided, although Councilmember Wythe’s point of view is definitely one of them.

Councilmember Novak stated Council is trying to be financially responsible and solvent. If there is something left over that is great.

VOTE: YES. HOWARD, NOVAK, HEIMBUCH, ROBERTS

VOTE: NO. WYTHE, SHADLE

Motion carried.

CITY MANAGER’S REPORT

A. City Manager’s Report

1. Glenn Satterfield: The City lost a long time employee and good friend this past week. Glenn Satterfield passed away unexpectedly and it has left many City employees, especially at Public Works and Port and Harbor shocked and saddened. Glen was the supervisor for the Port and Harbor Maintenance Crew. Services are scheduled for Saturday, May 10. Our thoughts and prayers go to Glenn’s family and friends.
2. Dave Brann: Homer’s Dave Brann is the 2008 recipient of the Alaska Recreation and Parks Association Distinguished Service Award. Dave is being recognized for his outstanding contribution to parks, trails, and recreation. The idea for nominating Dave for this award originated with Mike Illg and Tammy Haggerty coordinated and completed the paperwork. Tammy will receive the award on Dave’s behalf at the ARPA state conference in Petersburg. She has also arranged for a special local presentation and award ceremony on Friday May 9, 5 PM at the Islands and Ocean Center as part of Shorebird Festival. Mike Illg is handling the publicity for this event and Tina Day from the Chamber is also helping out. Congratulations to Dave. It has been suggested to me that Council might want to consider its own resolution expressing appreciation.
3. KESA Contract: This Agenda contains Resolution 08-55; a resolution approving a new contract with the Kachemak Emergency Service Area. This contract is different than those that preceded it because the contract amount is based upon the assessed value of property in the Service Area. It also has specific performance standards and benchmarks for KESA to gradually assume operational responsibility for Fire and EMS in the Service Area. There are associated reductions in the contract amount and effort expected from HVFD as KESA assumes additional responsibility.
4. ISER Working Paper 2008.1 by Steve Colt. This working paper was a topic of some conversation at the last meeting. At the time this report was written, we were in the process of drafting a letter to the Congressional Delegation requesting information on their position regarding the Lieberman-Warner bill and asking for their thoughts regarding Colt’s paper; as requested by Council.
5. Memorandum of Understanding between the City of Homer and Kachemak City: Construction is set to begin on Canyon Rim Subdivision this summer. You may recall that this is the subdivision adjacent to Bear Canyon and that most of the canyon itself is being dedicated to the City of Homer as a Park and recreation easement. You may also recall that even though this subdivision is within the City of Homer corporate limits, one must travel through Kachemak City to get there. This means a significant impact to Kachemak City roads and traffic. The City is working with the contractor to make some improvements to sections of road in Kachemak City ( 2,000 feet of road leading to the subdivision) and to bring them up to Homer’s rural road standards. The City and Kachemak City will also need to enter into an MOU to address road maintenance on Kachemak City Roads that are impacted by this development and serve the new 30 lot subdivision. Resolution 08-56 is on this Council Agenda. Resolution 08-56 approves a draft MOU between the two Cities.
6. Security Vulnerability Assessment: Last week we participated in a three-day Security Vulnerability Assessment conducted by the Department of Military and Veterans Affairs, Division of Homeland Security. This assessment was requested by Chief Mark Robl. The Public Works, Port and Harbor, Police, Fire, and Administration Departments participated for the City. Representatives from HEA, DOT/PF, and the Hospital also participated. The purpose of the assessment is review the security and vulnerability of vital City facilities to a variety of threats from terrorists attacks to tsunamis. The participants provided the reviewers with a great deal of information about City facilities. The reviewers visited all facilities. Special attention was paid to the water supply, the airport, and the port and harbor. A final report will be produced which will provide ideas regarding how security might be improved. Having this report and planning document will also make it easier for the City to apply for grants.
7. Sulfur Shipments: This project was described in some detail in the last report. Things are moving forward steadily. The Terminal Use Agreement and lease have been signed. Everything seems to be in place. We expect shipments to begin this week. Will provide further updates as the operation begins.
8. Spit parking lot extension: Bad news here. As you may recall, the current spit parking lot is located mostly within the Kachemak Drive ROW. The City owns a parcel directly behind which is essentially the hill that you see behind the pavement. PW drew up a plan (that the Council approved) to extend the parking lot to add spaces for an additional 25 to 30 cars and submitted the plan and ROW application to DOT/PF well over a year ago. The DOT/PF ROW Division still has not ruled on our application for a ROW permit but they did tell Carey that the application will likely be denied. (a variety of reasons) They want us to push the parking lot back into the hill on City property. This would be much more expensive and involve major excavation. We are presently formulating a response but wanted to give the Council a heads-up that this project has run into unexpected trouble and may not happen this spring or anytime soon.
9. Kachemak Drive Erosion Issues: The City has begun a discussion with DOT/PF about how we might collaboratively approach studying the myriad of drainage issues on Kachemak Drive. DOT/PF’s initial position is that the road is not the problem. They have stated that they will participate in forums and do what they can to help, but they are not going to take the lead on this and they have no money for studies or additional construction.
10. Substandard Roads and Break-Up: Spring is here and with that comes the annual break-up season. As usual, gravel and dirt roads all over town are in pretty rough condition. We have received quite a few complaints again this year about the condition of the roads but Public Works is reluctant to take equipment on them until the frost melts and they dry out. Doing so can cause more harm than good. I think the community will always have a good debate every year about the best time to get the graders out on the roads. This year, we are also having the annual discussion with folks about fixing and repairing roads. Many people, especially in the annexed areas, living on substandard roads, believe strongly that it is the City’s responsibility to fix these roads up since they are now paying property taxes. We respond that the taxes they pay are to maintain the roads and that the City’s adopted policy is that the property owners adjacent to these roads should bring the roads up to a minimal standard through the LID process subsidized by HART and then the City will take them over and maintain them. They City crews have been gradually fixing the worse sections of road as they have time and materials. A culvert here, some gravel there, a new drainage ditch here, things like that. This sometimes requires creative use of the “maintenance” budget. The bottom line is that we do not have a budget for construction and the City crews are set up to do maintenance, not construction. Some folks have suggested to me that the Council should use surplus revenues to fix up the infrastructure around town, especially substandard roads right in the downtown area.
11. Spit Parking: On May 6, there was a joint workshop to talk about various parking issues on the Spit. The workshop was attended by members of the Council, the Port and Harbor Commission, the Planning Commission, the City Administration, the Police Department, the Port and Harbor staff, and two representatives from DOT/PF. Officer Stacey Luck provided the group with an update on the Police Department’s plan to ramp up enforcement of parking and traffic violations on the Spit this year. The DOT/PF staff provided an overview of what can and cannot take place in the State Right of Way. Planning Commission members talked about their desire to work on a Spit Comprehensive Plan to look at parking in a broad comprehensive way. Port and Harbor Commission members stressed safety issues, their long range parking plan for public parking, and their desire to fund a parking needs study. There was broad consensus on a number of points. The primary ones were that the group should recommend to the Council that they 1) ask the administration to work with DOT/PF and look into the idea of the City assuming responsibility for parking in the State ROW. 2) provide funds from the Planning Reserves to conduct a Spit Comprehensive Plan, and 3) provide funds to do a more immediate parking needs assessment.

City Manager Wrede stated Glenn Satterfield, Port Maintenance Technician, passed away quite unexpectedly. His funeral was held on Saturday at Hickerson Memorial Cemetery. Our thoughts go out to his family. Two sons were able to come to Homer.

City Manager Wrede offered congratulations to Dan Cornelius, Fish Dock Supervisor, for 30 years of service to the City of Homer. He is the third employee to have met the 30-year mark.

B. Bid Report

C. Question of the Week

COMMITTEE REPORT

A. Comprehensive Plan Community Advisory Committee

B. Public Arts Committee

(May 15, 2008 Worksession 10:00 a.m. and Regular Meeting 11:00 a.m.)

C. Transportation Advisory Committee

(May 20, 2008 5:30 p.m. Regular Meeting)

D. Permanent Fund Committee

(June 19, 2008 1:00 p.m. Special Meeting)

E. Lease Committee

PENDING BUSINESS

None.

NEW BUSINESS

None.

RESOLUTIONS

If Reconsidered:

A.        Resolution 08-31, A Resolution of the City Council of Homer, Alaska, Amending the Community Design Manual. City Manager/Planning. Reconsideration issued April 30, 2008.

Memorandum 08-37 from City Planner as backup.

Motion for the adoption of Resolution 08-31 is back on the floor from the April 28^th meeting.

Councilmembers Novak and Shadle excused themselves from a previously declared conflict of interest.

ROBERTS/HEIMBUCH - MOVED TO POSTPONE THIS RESOLUTION INDEFINITELY.

There was no discussion.

VOTE: YES. NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

B. Resolution 08-55, A Resolution of the City Council of Homer, Alaska, Approving a New Contract Between the City of Homer and the Kenai Peninsula Borough Regarding Fire and Emergency Medical Services within the Kachemak Emergency Services Area. City Manager.

NOVAK/SHADLE – MOVED FOR THE ADOPTION OF RESOLUTION 08-55 BY READING OF TITLE.

There was no discussion.

VOTE: YES. NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

C. Resolution 08-56, A Resolution of the City Council of Homer, Alaska, Approving a Memorandum of Understanding Between the City of Homer and Kachemak City Regarding the Maintenance of Approximately 2,000 Linear Feet of Road on Stellars Jay Drive and Golden Plover Avenue. City Manager.

Mayor Hornaday called for a motion for the adoption of Resolution 08-56 by reading of title only.

ROBERTS/NOVAK – SO MOVED.

ROBERTS/NOVAK - MOVED TO POSTPONE RESOLUTION 08-56 TO THE NEXT MEETING.

Council decided at the Committee of the Whole to postpone, as the Memorandum of Understanding was just presented in the Supplemental Agenda.

VOTE: YES. NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

D. Resolution 08-57, A Resolution of the City Council of Homer, Alaska, Approving a Three-Year Contract with GCI for Local Phone Service in the Amount of $17,791.20. City Manager.

Memorandum 08-66 from Finance Director as backup.

Mayor Hornaday called for a motion for the adoption of Resolution 08-57 by reading of title only.

NOVAK/SHADLE – SO MOVED.

There was no discussion.

VOTE: YES. NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

E. Resolution 08-58, A Resolution of the City Council of Homer, Alaska, Awarding the Contract for the 2008 - 2010 Public Works Gravel Supply to the Firm of DIRTT Co., LLC of Anchor Point, Alaska, for Winter Sand at $14.00 per Cubic Yard, 2” Minus Gravel at $15.50 per Cubic Yard, D-1 Gravel at $18.75 per Cubic Yard, Airport Sand at $19.50 per Cubic Yard and Type II Gravel at $11.75 per Cubic Yard and Authorizing the City Manager to Execute the Appropriate Documents. City Clerk.

Memorandum 08-63 from Public Works Superintendent as backup.

NOVAK/ROBERTS – MOVED FOR THE ADOPTION OF RESOLUTION 08-58 BY READING OF TITLE.

There was no discussion.

VOTE: YES. NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

F. Resolution 08-59, A Resolution of the City Council of Homer, Alaska, Awarding the Contract for the Fish Grinder Lift Station Upgrades 2008 to the Firm of Tusk Corp., dba Liberty Electric of Homer, Alaska in the Amount of $50,588.00 and Authorizing the City Manager to Execute the Appropriate Documents. City Clerk.

Memorandum 08-64 from Public Works Superintendent as backup.

Mayor Hornaday called for a motion for the adoption of Resolution 08-59 by reading of title only.

ROBERTS/NOVAK – SO MOVED.

There was no discussion.

VOTE: YES. NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

COMMENTS OF THE AUDIENCE

Dean Ravin, Homer resident, commented in light of the cost increases for liquid fuels and the City’s sales tax on same, it represents a windfall for the City. Prices have doubled in the last 18 months. He would like the City to give residents a break on food tax. Taxes impact low wage earners. It is immoral and unethical. Pharmacies sell a tax free product.

Bryan Zak, city resident, stated he saw a demonstration on Pangea Day (world happenings with high costs) and also heard the Pebble folks talk. One thing not often asked is when Pebble exports the ore, where will they take it to the smelters? He asked Council to consider that. His concern is when ore is mined it is put on ships and smelted somewhere else. The global impact needs to be considered.

Leonard Wells, city resident, stated at the last meeting he raised the question on water/sewer rates. The Clerk said Council has no procedure and he was referred back to Finance. He submitted a request to Council for the appeal process to review the rate in question. He asked how an ordinance or resolution was presented to Council.

Mayor Hornaday stated a citizen could write one up and it could be sponsored by the Mayor, Council or City Manager.

Mr. Wells stated it would be appropriate for Council to refer the funding question for the Chamber of Commerce to the voters to see if they approve of spending.

COMMENTS OF THE CITY ATTORNEY

City Attorney Tans was not present.

COMMENTS OF THE CITY CLERK

City Clerk Johnson stated the need to hear Resolution 08-60, as provided on the supplemental agenda.

G. Resolution 08-60, A Resolution of the Homer City Council Confirming the Appointments of Regina Harville as Treasurer and Laurie Moore as Deputy Treasurer for Calendar Year 2008. City Manager.

Mayor Hornaday called for a motion for the adoption of Resolution 08-60 by reading of title only.

SHADLE/ROBERTS – SO MOVED.

There was no discussion.

VOTE: YES. NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

COMMENTS OF THE CITY MANAGER

City Manager Wrede explained Leonard Wells frustration at not getting his question answered. He was charged new water/sewer rates for the entire billing cycle, which included a couple weeks in 2007. There is no formal appeal process; however, Council could hear his complaint at a worksession or another meeting. Although Mr. Wells may be a winner with his bill (if adjusted), other folks’ bills may increase if the billing cycle was adjusted.

Mayor Hornaday requested the City Attorney be consulted.

COMMENTS OF THE MAYOR

Mayor Hornaday had no additional comments.

COMMENTS OF THE CITY COUNCIL

Mayor Pro Tempore Novak stated Council talked about tax on food and other options. The Finance Director was asked to see how much money food sales represents. There are other tax options and Council is looking at different ways to compensate for the increase in revenues. The City has cost increases too. If extra revenue is found, Council has ideas and creative things after meeting expenses first.

Councilmembers Shadle and Heimbuch had no comment.

Councilmember Wythe thanked everyone for allowing her to participate by teleconference. She wished Councilmember Heimbuch a safe and prosperous fishing trip.

Councilmember Howard thanked and congratulated Mr. Smith and Ms. Erickson for stepping up to be commissioners. She said goodbye to Beth McKibben and wished her good luck, wished Regina Harville a speedy recovery on her upcoming surgery and safe fishing to Councilmember Heimbuch.

Councilmember Roberts responded to Mr. Ravin: It is true the City is getting more sales tax due to increased fuel costs. The statistics from the Finance Department indicate the City’s fuel costs are also going up; they reported an increase of over $300,000 already budgeted for fuel. We need to pay attention to our costs before we begin rebating money. She said goodbye to Mr. Heimbuch, we will miss him and see him again in August.

ADJOURNMENT

There being no further business to come before the Council the meeting was adjourned at 9:36 p.m. by Mayor James C. Hornaday. The next Regular Meeting is scheduled for Tuesday, May 27, 2008 at 7:00 p.m. The next Committee of the Whole is scheduled for Tuesday, May 27, 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: _____________________