Session 05-14, a Regular Meeting of the Homer City Council was called to order at 7:00 p.m. by Mayor James C. Hornaday at the Homer City Hall Council Chambers located at 491 E Pioneer Avenue, Homer, Alaska, and opened with the Pledge of Allegiance.

PRESENT: COUNCILMEMBERS: HEIMBUCH, McLAY, NOVAK, STARK, WYTHE, YOURKOWSKI.

STAFF: CITY CLERK CALHOUN

CITY MANAGER WREDE

LIBRARY DIRECTOR HILL

PUBLIC WORKS DIRECTOR MEYER

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

The City Council met as a Committee of the Whole from 4:02 p.m. to 4:46 p.m. Regular Agenda Items.

The City Council conducted a Special Meeting from 5:30 p.m. to 6:50 p.m. for Executive Session Purposes.

AGENDA APPROVAL

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

YOURKOWSKI/STARK MOVED TO PULL ITEM A. OF NEW BUSINESS.

VOTE: YES: NON OBJECTION UNANIMOUS CONSENT.

Motion carried.

Mayor Hornaday read the following agenda changes: Substitute Resolution 05-62(S), Awarding the Bid and Contract for the Deep Water Dock Corrosion Protection Retrofit with Memorandum 05-94 as backup. Addition of Parks and Recreation Report, Memorandum 05-101. Corrected Proclamation for Brain Injury Awareness. Written public comment.

McLAY/STARK - MOVED TO APPROVE THE AGENDA AS AMENDED.

VOTE: YES: NON OBJECTION UNANIMOUS CONSENT.

Motion carried.

PUBLIC COMMENTS UPON MATTERS ALREADY ON THE AGENDA

Public Comments upon any matter on the agenda except Public Hearing items: Kachemak Drive Phase One Water and Kachemak Drive Phase Two Water and Sewer Improvement/Assessment Districts, Ordinances 05-19, Accepting and Appropriating an EDA Grant of $1,115,000.00 for the New Library Project and 05-29, Amending HCC 21.59.070 Concerning Impervious Coverage Allowances in the Bridge Creek Watershed Protection District, and 05-30, Accepting and Appropriating $1,830.00 from Kachemak Heritage Land Trust for the Town Center Development Pre Design and Visioning Project.

John Velsko, City resident, urged the Council to pass Resolution 05-66, 4 mills property tax rate for 2005, for the reasons outlined in Memorandum 05-98. He noted that many property owners have received an increase in property tax more than 30% without a commensurate increase in income. He voiced his opinion that the tax rate of 4 mills is preferable to a municipal, residential tax exemption since it would be easier to administer and that a low mill rate would make future annexation easier to swallow for outlying areas. He stated that Service Area fees and Borough taxes, when combined, may well result in a figure higher than Homer's 4 mills, adding that, sometimes, a carrot works better than a stick. He requested that the Council pass Resolution 05-67 as written, directing the Library Board to develop user fees, adding that the truly indigent library patron, along with children, should always be granted access to knowledge; however, the tax payers should not have to subsidize trust fund babies and well heeled vacationers. He emphasized that many Homer residents have supported the Library with tax money and personal contributions, knowing that in this new electronic information age they will likely, rarely, if ever, use the new facility. He pointed out that the New Library is still a project that has instilled a great amount of civic pride and that it flies in the face of community cooperation for some Library Advisory Board Members to constantly and irrationally object to asking the folks who will actually be using this new Library, many being non residents, to contribute to its upkeep. He thanked the Council.

Hardin Terrell, City resident, encouraged the Council to pass Resolution 05-66, the 4 mill, that this is a good deal, that Mr. Velsko said everything that there was to say and thanked the Council.

Louis Depree, non City resident - lives at Mile 15 East End Road, spoke in favor of Resolution 05-67, that he uses the Library, has donated a little over $300 to the library and fees that a small fee to use the Library as a non City resident is not inappropriate.

Claire Mc Cann, non City resident operates a business inside the City, voiced opposition to Resolution 05-65, about airport noises and expressed dissatisfaction with not receiving proper notification from the City and that such a Resolution puts a wedge between the aviation community and the residents of the area. She objected to the statement by Councilmember Stark that he met with area pilots, stating that this is somewhat misleading since he only met with three pilots. She stated that her operation coupled with Homer Air probably have the most impact on traffic off the main airport and that Councilmember Stark had not contacted either of them. She stated that FAR 91.119 and 135.203 clearly define operational limitations for both private and commercial operations; Except when necessary for take off and landing over congested areas there must be 500 feet altitude minimums and there are exceptions. AIM Section 4-3-3 list procedural information for pattern work at airports. She emphasized that Homer Airport is an uncontrolled airport, when in VFR conditions aircraft do not have to talk on radios and can land and take off at will. She advised the Council that, as an operator, they comply with these regulations and many others. She reported that her company policy states that their company aircraft will reach an altitude of 700 feet prior to commencing a departure turn, and that it is not the intent of any operator to create problems with air space, noise or public inconvenience. She voiced concern that such complaints take FAA personnel away from more safety critical issues, noting that this is not a safety issue, but a complaint from one of a few residents who chose to live in close proximity to an already long established airport. She voiced her opinion that adopting Resolutions is a step toward further regulatory action, will cost the City financially in the long run and inquired as to who would be overseeing and enforcing this matter? She noted that the Homer Police are already under staffed and over worked.

Larsen Klingel, Homer area resident, spoke in opposition to Resolution 05-66, suggesting that the Council would be better off to put this in the form of an exemption for local residents, that Council could make a larger tax deduction at the same cost. He voiced his opinion that there is no reason for the residents of Homer to subsidize people from California, who have second homes here, or Fred Meyer or such things. He suggested that the money that the City would lose from the tax exemption would be pumped right back into the economy at a very high rate since that money would go right back into the pockets of the citizens of Homer as opposed to if the mill rate were reduced, much of which goes outside of Homer. He stated that he is not against the tax reduction and that he just believes there is a more efficient way to do this, and therefore asks for the defeat of Resolution 05-66. He thanked the Council.

Leonard Wells, City resident, voice support for Resolutions 05-66 and 05-67 for the reasons the first two speakers mentioned. He voiced opposition to Resolution 05-65, being a person who lives underneath the noise umbrella of the both the airport and the water, adding that he chose to move there after the airport was there and knowing that the noise was there. He voiced his thought that most people in the City that live anywhere under that umbrella should have been aware and that they did choose to be there, adding that he, personally, does not find this objectionable. He expressed his objection to the Council regarding the three minute limit on the citizens, that everyone here ran for the job, that he does not think that it too much to ask for Council to sit, twice a month, and hear the public, when only five or six or less, for however long it takes to get the point across, even until 9 or 10 at night.

Steve Gibson, City resident, expressed alarm at the library Resolution 05-67, and that it is kind of a seed change that changes the category of the Library from an expected City function to, if not a profit center, something that has to pay its own weight in money in user fees. He voiced concern about one of the Whereas clauses that states: "It is a common and growing practice to impose user charges in public facilities." in that this could cover anything in the broad scope of things from restrooms on the Spit to the borough schools. He voiced his opinion that this is a blanket statement that demands closer inspection. When looking at the function of the Library in the community it comes closer to one of the old tradition that, and yes should, charges for over due books, out of town library cards for temporary summers, inter library loans. Basically, the principle is that it is a free library for the community and a fundamental value that should be protected, it is not a meeting room that is being rented out from time to time.

Ray Kranich, City resident, finished reading Claire McCann's comments: Letter points: The airport is state owned property and the City police have no jurisdiction and that it would be the Alaska State Troopers that do have jurisdiction. The FAA requires hard proof of unsafe operations for enforcement action. Is the City prepared to allocate funds for personnel and equipment to monitor noise levels? Memorandum 05-100 relays that Council's legal counsel addresses the issue quite clearly that the City would not be able to pass valid regulation to curb the noise from airplanes in flight. FAA and the State DOT are the appropriate regulatory agencies who have such procedures in place. If the City, as a whole, has a serious complaint about airport activity those are the agencies to contact and who have the ability to make changes. City Council has a fiduciary responsibility to all of its citizens and tax payers and not to just a few special interest groups who would use the City Council as a vessel for personal issues. He commented on his own behalf that he agrees with all of Ms. McCann's testimony, adding that Homer, although an uncontrolled airport, has a recommended traffic pattern only and that the only thing that restricts altitude is what Ms. McCann cited. He stated that Resolution 05-65 uses incorrect terminology, is poorly written and if it shows up on FAA's desk they will say, "Who wrote this?". Mr. Kranich asserted that the author does not even know how to talk about airplanes and airport activities. He voiced his desire for the Council to vote down Resolution 05-66, acknowledging that everyone would like to see a tax cut. He recalled that the staff and this Council during budget action set upon a fiscal plan for revenue generation and even took it to the tax payers. The tax payers approved it, the ink is not even dry and here the Council is wanting to change it. He inquired as to what kind of responsible action this is, Council sent out a plan and does not even see if it is going to work before Council changes it. He suggested that the voters will look long and hard at that when they are trying to pick their leaders. He reported that his tax rate went up over 67% on some of his property and urged the Council to carry out their plan and at next budget session see where they stand.

Ken Castner, City resident, voiced agreement with Mr. Kranich about the airport and Resolution 05-66. He noted that generally the float plane traffic is over town, both wind directions and wheeled plane traffic is over the water, which separates both kinds of aircraft. He objected to Resolution 05-67, stating that it is not about money, that the money was taken care of with the1% tax increase. He emphasized that the library supporters went out of the way to support that tax increase and spent hours and hours on the phone. He emphasized that this Council and the City Manager specifically made it really clear that if "they" wanted a new library "they" had better help get support from everyone around the area in order to help pay for this library. He asserted that "Resolution 05-66" is social engineering at its best and social pathology at it worst and is really punishing the people that can't afford fees. He informed the Council that he does not even use the Library, although he is a huge supporter and believes that in the democratic process there has to be an educated citizenry. He reported that he pays a lot so that others can pay nothing and does it as a volunteer. He told the Council that this Resolution steps on his general good nature, his generosity and his civic responsibility and is kind of like Mr. Gibson said, a seed change, a social restructuring and not about money. He voiced his hope that the Council would vote it down and if the Council does not vote it down perhaps they can have another election this fall that really clarifies what the people want in the way of Library services. He reported that when the Library came in $900,000.00 over budget that he called Juneau and worked with Representative Seaton. He told the Council that they cannot take all the successful people and good volunteers out and shoot them, because who will then do the rate study or help Council with their next thing.

Bill de Creft, Kachemak Bay Flying Service and one of the noise makers for over 40 years having been here since 1962, reported that he brags on this town, because there is a lake right in town and when people hear someone flying it is either because someone is injured, someone going out to have fun, or that someone has a purpose. He stated that he does not believe that any pilot purposefully makes noise and that there are times pilots fly when the don't want to fly, adding those situations. He voiced his belief that this is a personal thing between two people, that the rumor he's heard is that there is one guy underneath an airport that is taking off and turning right early and heading right over the water, interjecting that those two people need to settle this. He reported that FAA has been investigating this and is closing in on the situation, adding that FAA are the ones to handle this and voiced concerns about the whole issue. He encouraged patience and asking the law to take care of this.

RECONSIDERATION

None scheduled.

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.)

Councilmember Yourkowski requested that Item B. be placed under Ordinances as Item B.

A. Homer City Council unapproved meeting minutes of May 9, 2005 Regular Meeting. City Clerk. Recommend approval.

B. Ordinance 05-14, Of the City Council of the City of Homer, Alaska Amending Homer City Code Chapter 3.05, Budget to Add a New Section 3.05.046, General Permanent Fund. Wythe. Recommend introduction and conduct public hearing on June 13, 2005 and Second Reading on June 27, 2005.

Placed under Ordinances as Item B.

C. Ordinance 05-31, Of the City Council of Homer, Alaska, Accepting and Appropriating an Alaska Division of Homeland Security and Emergency Management (DHS&EM) Grant in the amount of $164,047.00 under the Law Enforcement Terrorism Prevention Program and Authorizing the City Manager to Execute the Appropriate Documents. City Manager. Homer Police Department. Fiscal Note: Revenue and Expenditure Account number 151-784, Homeland Security Grant $164,047.00 for the Terrorism Prevention Program - Expenditure Digitize Radio System $ 47,047.00, 151-784 Video Surveillance Equipment $58,000.00 and Emergency Generator Project Completion $59,000.00. Recommend introduction and conduct Public Hearing and Second Reading on June 13, 2005.

Memorandum 05-99, from Chief of Police as backup.

D. Resolution 05-61, Of the City Council of Homer, Alaska Awarding the Prisoner Meal Service Contract to the Homer Senior Citizens, Inc. of Homer, Alaska in the amount of $8.00 per Meal, $5.00 per Delivery and Authorizing the City Manager to Execute the Appropriate Documents. City Clerk. Fiscal Note: Revenue. Acct. 100.164.5206Recommend Adoption.

Memorandum 05-93, from Chief of Police as backup.

E. Resolution 05-62(S), Of the City Council of Homer, Alaska Awarding the Bid and Contract for the Deep Water Dock Corrosion Protection Retrofit to Inlet Offshore Diving/Salvage, of Anchorage, Alaska in the Amount of $480,100.00, Base Bid and Authorizing the City Manager to Execute the Appropriate Documents. City Clerk. Fiscal Note: Expenditure Acct. 415-380. Recommend Adoption.

Memorandum 05-94, from Public Works as backup.

F. Resolution 05-63, Of the City Council of Homer, Alaska Approving and Accepting the Renewal of the Agreement for Joint Use of Equipment and Facilities for the Community Schools Summer Program in the Amount of $5,000.00 and Authorizing the City Manager to Execute the Appropriate Documents. City Manager. Recommend adoption.

G. Resolution 05-64, Of the City Council of Homer, Alaska Supporting Full Time Staffing of the Borough Homer Office. Mayor. Recommend adoption.

H. Memorandum 05-95, from City Clerk, Re: Canceling the July 18th Special Meeting, Previously Scheduled, Pursuant to Council's Meeting Schedule as set by Resolution 04-103, and Conducting only the July 25th Meeting. Recommend confirmation.

I. Memorandum 05-96, from Mayor, Re: Reappointment of Kyra Wagner to the Library Advisory Board. Recommend Confirmation.

Mayor Hornaday solicited a motion for the adoption and/or approval of the recommendations of the Consent Agenda as read and amended.

WYTHE/NOVAK - SO MOVE.

There was no discussion.

VOTE: YES: NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

VISITORS

None Scheduled.

ANNOUNCEMENTS/PRESENTATIONS/BOROUGH REPORT/COMMISSION REPORTS

A. Mayoral Proclamation - Brain Injury Awareness Day - June 4, 2005.

B. Memorandum 05-101, from Parks and Recreation Commission, Re: Report.

PUBLIC HEARING(S)

A. Kachemak Drive Phase One Water Improvement/Assessment District.

Mark Roth (1), City resident on Kachemak Drive, wondered what the Council does not understand about the word no, adding that a majority of the property owners along Kachemak Drive voiced their opinion to not have sewer and water put in and Council continues to push this issue. He asserted that the Council turned this around to go by the assessed value of the property and that this is not even fair when one had to pay the same assessment as the guy next to him, but does not get the same vote. He suggested that if the Council wants to use assessed value to decide if they want sewer and water, then the Council had better charge people according to the assessed value, if Council is gong to give the higher assessed value property more vote then that property should be assessed more. He inquired about a motel or condominium? A residence pays $28,000.00, a person with property assessed value at 8,500 still pays $28,000.00 and then someone comes along and puts in twelve condominiums or a motel and pays $28,000.00. He queried the Council if there is something wrong with this picture? He voiced objection to the interest rate and that in one part of the paper work it says 6.5 percent and in another it says 6.5 percent plus prime. He told the Council that they need to pay attention to what the property owners on Kachemak Drive are saying and that the majority of them are saying that they do not want this.

B. Kachemak Drive Phase Two Water and Sewer Improvement/Assessment District.

Gert Seekins, City resident and property owner on Kachemak Drive, advised the Council that they own two lots in the district, that they were in favor of the water and sewer, but now that they are selling their property they do not want to pass on the $28,000.00 assessment to a future owner, adding that everything works well on both lots. She voiced concern about the removal of trees, which do sop up a lot of the moisture and concern with regard to the fragile soils. She expressed feeling sorry for those property owners with parcels valued at $7,000.00 and $8,000.00, interjecting that there has been some talk about giving this land to the Land Trust or to the Heritage Trust or whatever. She expressed her understanding that they are non profit, and inquired if this would make the rest of the property owner's assessments go up and that she did not understand about the City property being omitted. She relayed that Dr. Sayer called and asked if she would also speak in opposition for Phil and Frankie Sayer and gave their lot numbers, adding the recognition that they do have to send in their paperwork.

Anne Wieland, property owner of two lots in the district, voiced objection and stated that it seems very unfair to her that small wetland lots assessed at $3,000.00 and a large lot assessed at $250,000.00 should be assessed the same owner assessment of the water and sewer at $28,000.00 plus with hidden costs of the 6.5% interest. She relayed loan officer calculations - per lot $54,125.00 and in her case she would be paying more than $108,000.00. She commented that apparently they must hook up within one year of availability of water and sewer that additional cost plus cost of restoring torn up driveways and yards and then cost of service of at least $47.00 per month plus commodity charge and tax. She noted that all of this for services that they all have one way or another. She emphasized that the existing systems have been installed, often at considerable expense, and would be rendered obsolete by the LID. Some beach lots have been considerably impacted by accelerated sloughing, flooding and eroding especially since Kachemak Drive was paved. She advised the Council that the proposal is to install water and sewer on opposite sides of the road, a large number of trees, shrubs and fences will be removed, the important screening from Kachemak Drive. This removal, added to the beetle kill, will result in less privacy, more noise and fumes from traffic and the surviving trees will have an important roll in utilizing excess moisture in the soils. The loss of the trees will create more saturated soils and thus more sloughing and erosion. The pattern of objections is north of the line drawn east of Little Fireweed - 19 of 21 lot owners about 90% want the LID and from the same line south to the terminus of this phase only about 22 of 64 lots or about 33% want the LID. She respectfully suggested that the LID be broken into two portions, which would provide time for the property owners to determine why the accelerated erosion and sloughing is happening and then perhaps incorporate mitigating measures at the same time that sewer and water, if inevitable, is installed. She read a letter from Rosalie Garroutte and Vikki Simpson also property owners in the district: Letter points: Strongly oppose the district. Three years ago put in large new holding tank and water tank. Current billing is about $31 per month. Assessment for this LID is $28,000.00 plus interest and monthly water and sewer bill. If the people from East End Road all the way to the Boat Yard want water and sewer then give it to that portion of the district and let them pay.

Dr. Chuck Burgess, resides in district, voiced opposition to the LID and thanked all those who spoke before him. He stated that it would be the worst form of government if something were to be shoved down their throats when there is clearly such substantial confusion, cost issues, and environmental issues in terms of erosion. He suggested that this should not go through for those reasons alone, adding that there is a lot of ill will about this and about how it was conducted. He stated that he did vote in favor of the district when the assessments were at $22,000.00, he commented about coming here for a hearing and that it seemed to be a much more user friendly process. He stated that something has changed some how along the way, has become a lot less user friendly and threatening to those who want to have more say and more input into the whole process and to understand more clearly the cost implications, especially to those who are not as well to do as others and who do stand to suffer, from a financial point of view. He thanked the Council.

Snooks Moore, lived on Kachemak Drive for 33 years, voiced an opposite view, that people cannot continue to put sewer over the ground that it is an environmental risk and it will start causing damage. She emphasized the critical habitat area, advising that she was involved, many years ago, in helping create the critical habitat area. Unless absolute holding tanks are put in the sewer goes down hill, blue clay and peat moss, it just does not completely perc. She commented on living on Lake Washington when it closed for three years to all sports activities, that it took years and a lot of money till everyone was on sewers. She pointed out that the area is growing and that people are building. She voiced her opinion that sewer and water is absolutely necessary, or quit building houses or giving building permits or absolutely and totally require holding tanks. She noted that this does not work for their commercial operation, at all and would be very, very expensive for them. She expressed non objection to dividing the area and that they would be for that. She reported that before annexation they had approached the City about putting in a spur line and paying for it themselves. She emphasized that their cost is almost $300,000.00, a lot of money and that with that they will not be able to hook up every building, this does not include hookup fees. She reiterated that this is environmentally necessary. There are other places in town wherein the City is going to have to address sewer. She informed the Council that they had the creek tested 20 years ago, that it was unsafe then and it was the sewer coming off the hill. She wondered that as a town that wants the Bay protected why are we putting sewer over the Bay? She relayed hearing people, daily, wanting to protect the Bay, but yet won't put in a sewer line, which just does not make sense. She thanked the Council.

Sharon Minsch, resident on Kachemak Drive, stated that something needs to happen with this process, that the Council needs to pay particular attention to this issue and help all get a handle on it. She advised the Council that there are outhouses on Kachemak Drive, there is sewer and septic on the beach, adding that not everyone has an acceptable system. She commented on the change in the assessment from $22,000.00 to $28,000.00, adding that she initially voted for it and that she probably has the best septic and water system on the whole stretch. She suggested giving the low property value and wetlands properties to Kachemak Land Trust if these are worthless, inquiring what these people are hanging onto these lots for if the lots are so worthless. She noted that if these are passed on for public purpose the "Accelerated Process" absorbs the cost for those assessments. She emphasized that she has great neighbors on Kachemak Drive and that everyone has their own opinion about this, that it is kind of a convoluted process, adding that she has been following right it all along. She commented that she does not know the answers, but that the health issues and implications and the need for infrastructure may take a bigger process. She noted that the costs are only going to get higher and commented on the old process of the property owners only paying 50%. She suggested that all it is going to take is for DEC to walk those beaches and everyone along that street can be shut down, and then what does everyone do - put in holding tanks. She relayed the perception that this is being driven by Snooks and Kenny Moore, but there are a lot of people who have voted yes numerous times, and not voting yes different times, confirming that there has been a lot of confusion. She expressed her willingness to bite the bullet, pay for it and get it fixed once and for all and would also be willing to put in some time to get some consensus and figure out how to solve this problem. She thanked the Council.

Martin Leichtung, district resident, reported that he put in a water and septic system at considerable expense that was DEC approved, one of the first mound systems installed in the City of Homer that was designed specifically due to the impermeable layer a few feet below the soil. He emphasized that he knows for sure that he is not putting anything nasty over the bluff. He relayed that he believes there are a lot of people up and down the street who have done the same kind of thing. He suggested that if there are concerns about things washing over the bluff and down on the beach, that these are coming from up the hill somewhere and that putting in water and sewer on Kachemak Drive is not going to change that picture. What will change the picture is creating more awareness about that stuff in every building community around the City, but this is not going to take care of the old stuff, such as log cribs, etc. He voiced opposition to the district and that it favors a very small number of people on the over all portion of residents on the street. If a certain business needs to improve their water and sewer capabilities then that business should pay for that independently and those costs should not be forced on the rest of the residents on the street that have perfectly adequate systems. These are environmentally sound and acceptable systems. He stated that it is totally beyond him how these calculations of the assessments come out at this kind of money and wondered how these dollars were developed, how can such wildly differing figures come out for the different phases and that if there is an explanation it certainly has not been clear to those who are going to wind up paying the bill. He told the Council that this should not be done, should not be done now and should not be done without looking into it further. He thanked the Council.

Leonard Wells, non district resident, commented that some of the comments that he has heard tonight remind him of discussions in previous meetings about giving lots to the Land Trust and then the tax payers and residents elsewhere in the City pick up the tab of $28,000.00 for an $8,000.00 lot. He urged the Council to not go forward with this particular one until the Council figures out what they would do with anything that goes to the Land Trust. Will the Council make the Land Trust pay the assessment? The Land Trust indicated that they would not want the land if they had to pay the assessment. Will the Council make the tax payers in the rest of the City, that get no benefit, pay for it? He thanked the Council.

Caron Davis, owns two parcels in the district, advised that one of the parcels is just right of way for the road and that she does not think that she needs to pay for that if something goes through and that she is against the district since she has a DEC approved system that was put in last year and a new water tank. She suggested that if the Council is wanting to do something maybe they should go out and inspect all the homes along Kachemak Drive and condemn places if they don't have propert systems or given them a certain amount of time to put something in. She told the Council that she does not think they should force on them what they think is right when the property owners can do for themselves. If the district does go through she voiced her opinion that the interest rate is too high.

Jan Needham, resident in the district, noted that she has had a system in since 80 and that it has a tank and a drain line and that she does not put anything over the side of the bank. She voiced her opinion that there are not very many people that do that in this day and age and that most people have upgraded their systems and often have electric composting toilets or regular composting toilets or holding tanks or mound systems or drain fields. She stated that she does favor the idea of splitting the district. She told the Council that she does not like the financial possibilities over the rest of her existence, paying over $300.00 a month to the City for sewer and water problems, plus all the other hook up costs and things like that. She noted that she has property that does not actually front on the street and voiced her belief that the Council should exempt her from the whole LID. She stated that she sees nothing wrong with Caron's suggestion that if there are a few problem houses along Kachemak Drive that DEC should come in, probably, require them to put in a holding tank that will be pumped if they do not have enough space to set in a proper drainage type system. She told the Council that she does not believe the rest should be forced to pay these kinds of assessments and the future cost that will completely decimate whatever income she has left in this life time. She voiced her opinion that a lot of retired people on Kachemak Drive will fall into the same category, very fixed income of a limited means. She voiced agreement with all the objections. She thanked the Council for listening.

Marilyn Hueper, property owner in the district, advised that they are also in the Ocean Drive Loop Sewer District. She encouraged Council to continue with water and sewer, adding that it is environmentally irresponsible of the City to bring water in and not guarantee that water is going to be processed properly. She noted that when water is being trucked in and when one has a holding tank one uses the water differently. She commented that most places in the United States do not allow building without water and sewer going in. She commented about the long standing residents who have had to make accommodations to survive. She expressed their non objections to the water and sewer, adding that they are on the northern end of the district. She stated that this is a plus for the City, it supports the on going growth, it is ecologically responsible to be processing water in a known system, and that even DEC approved systems may not be maintained properly, properly used and utilized. This is just part of becoming a responsible community. She urged the Council to bring this in with the least amount of hardship and suggested a phasing in process, making a comment about new residents to the area. She thanked the Council.





C. Ordinance 05-19, Of the City Council of Homer, Alaska, Accepting and Appropriating a Department of Commerce Economic Development Administration (EDA) Grant of $1,115,000.00 for the New Homer Library Building Project and Authorizing the City Manager to Execute the Appropriate Documents. City Manager. Fiscal Note: Revenue and Expenditure Account 151-722, EDA Grant $1,115,000.00 to the Library Building Project. (First Reading May 9, 2005, Public Hearing and Second Reading Tuesday, May 24, 2005)

There was no Public testimony.

NOVAK/HEIMBUCH - MOVED FOR THE ADOPTION OF ORDINANCE 05-19 BY READING OF TITLE.

There was no discussion.

VOTE: YES: STARK, NOVAK, HEIMBUCH, McLAY, YOURKOWSKI.

NO: WYTHE.

Motion carried.

D. Ordinance 05-29, Of the City Council of Homer, Alaska Amending Homer City Code Section 21.59.070 Concerning Impervious Coverage Allowances in the Bridge Creek Watershed Protection District. City Manager. Planning Commission. (First Reading May 9, 2005, Public Hearing Tuesday, May 24, 2005, Second Reading on June 13, 2005.)

There was no Public testimony.

F. Ordinance 05-30, Of the City Council of Homer, Alaska Accepting and Appropriating $1,830.00 from Kachemak Heritage Land Trust, from the Homer Foundation, for the Town Center Development Pre Design and Visioning Project and Authorizing the City Manager to Execute the Appropriate Documents. City Manager. Fiscal Note: Revenue and Expenditure Account 151-387 Kachemak Heritage Land Trust via Homer Foundation $1,830.00 for the Town Center Project.(First Reading May 9, 2005, Public Hearing and Second Reading Tuesday, May 24, 2005)

There was no Public testimony.

NOVAK/YOURKOWSKI - MOVED FOR THE ADOPTION OF ORDINANCE 05-30 BY READING OF TITLE.

Councilmember Novak reported that Laura Ballock has presented some of her work to the Town Center Committee, for which some of this money is going toward paying for, that she has done an outstanding job well beyond what she is getting paid, which will be available for the public to see in June.

VOTE: YES: NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

ORDINANCE(S)

A. Ordinance 05-27, Of the City Council of the City of Homer, Alaska Amending Homer City Code Section 21.48.060(h) Central Business District Landscaping Requirements, Buffers and Section 21.49.060(h) General Commercial 1 Landscaping Requirements, Buffers. Council. McLay. (First Reading April 25, 2005, Public Hearing May 9, 2005, Second Reading Tuesday, May 24, 2005.)

McLAY/STARK - MOVED FOR THE ADOPTION OF ORDINANCE 05-27 BY READING OF TITLE.

Councilmember Stark commended and congratulated Councilmember McLay for identifying a problem that he was also familiar with and that it was appropriate that the Code be changed to alleviate this problem.

VOTE: YES: NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

B. Consent Agenda Item B. Ordinance 05-14, Of the City Council of the City of Homer, Alaska Amending Homer City Code Chapter 3.05, Budget to Add a New Section 3.05.046, General Permanent Fund. Wythe. Recommend introduction and conduct public hearing on June 13, 2005 and Second Reading on June 27, 2005.

YOURKOWSKI/WYTHE - MOVED ADOPTION OF ORDINANCE 05-14 BY READING OF TITLE.

Councilmember Yourkowski expressed concern about the 100%, adding that there may be situations wherein Council is not aware and Council could take advantage of the windfall to correct problems, such as the corrosion on the dock.

YOURKOWSKI/STARK - MOVED, LINE 28, LIKE TO CHANGE THE 100% TO AT LEAST 80%. (At any point in time that funds become available from the distribution of the Exxon Valdez settlement, or other forms of "wind-fall", 100% of such funds shall be used to establish a General Permanent Fund (Fund).)

There was some discussion, pro and con.

VOTE: (primary amendment 1.) YES: STARK.

NO: HEIMBUCH, McLAY, WYTHE, YOURKOWSKI, NOVAK.

Motion failed.

There was no discussion.







NOVAK/YOURKOWSKI - I'D LIKE TO MAKE A MOTION TO MAKE A CHANGE ON LINE 53 WHERE IT SAYS DISTRIBUTION OF FUND PRINCIPAL, IT CURRENTLY SAYS A UNANIMOUS VOTE OF THE CITY COUNCIL IS REQUIRED TO PLACE THE QUESTION FOR SPENDING THE FUNDS FROM THE PRINCIPAL ON THE BALLOT, I WOULD PROPOSE THAT WE SAY: A VOTE OF THE CITY COUNCIL IS REQUIRED TO PLACE THE FUNDS... ELIMINATING THE WORD UNANIMOUS, I PREFACE THIS ON TWO THINGS. ONE IS...(line 53: Paragraph ( i ) of subsection g. Distribution of fund principal: i. A vote of the City Council is required to place [unanimous vote of the City Council may place ]the question of spending funds from the principal on the ballot for the next regular election.)

There was some discussion pro and con and that the intent was to build in a check and balance such as with the State Legislature. It was noted that this is not binding and future Council may amend it.

VOTE:(primary amendment 2.) YES: STARK, NOVAK, HEIMBUCH, McLAY, YOURKOWSKI.

NO: WYTHE.

Motion carried.

There was no discussion.

STARK/YOURKOWSKI - MOVED TO AMEND LINE 55 TO CHANGE 60% TO 50%. (To amend line 55: Paragraph ( ii ) of subsection g. (Distribution of fund principal.) ii. A preponderance[(60%) ](50%)of those voting on the issue shall be required to approve the distribution.)

There was discussion pro and con. Comment was made that coupled with the previous amendment this reduction makes expenditure too easy.

VOTE:(primary amendment 3.) YES: STARK.

NO: YOURKOWSKI, NOVAK, HEIMBUCH, McLAY, WYTHE.

Motion carried.

There was no further discussion.

VOTE:(main amended motion) YES: McLAY, WYTHE, YOURKOWSKI, STARK, NOVAK, HEIMBUCH.

Motion carried.

CITY MANAGER'S REPORT

A. City Manager's Report (Updates and Follow Up: Spit leases, Ice Rink/DOT Appropriation, Hospital Lease, Proposed Skyline Drive Fire Station, Beach Signs, Library, Spit Restrooms, Spit Parking Plan, Deep Water Dock Corrosion, KESA Contract, Boys and Girls Club - Skateboard Park; Letter from Governor Re: EDA grant; Email from Representative Seaton - Legislative Report.)

B. Bid Report.

Invitation to Bid, Public Works Gravel Supply Sealed Bids will be received by the Office of the City Clerk, 491 E. Pioneer Avenue, Homer, Alaska 99603 until 2:00 p.m., Thursday, June 9, 2005 at which time they will be publicly opened and read.

There was no discussion.

COMMITTEE REPORT

A. Town Center Development Committee. (Meet notes for April 28, 2005. Meetings scheduled for May 19 and 26, 2005 5:30 to 8 p.m. at the Homer Chamber of Commerce Building. Open House scheduled for June 9, 2005 4 to 7 p.m. Cowles Council Chambers and Final meeting June 23, 2005 from 5:30 to 8 p.m. )

B. Road Standards Committee

C. Public Arts Committee (Last Meeting held on April 21, 2005. Next meeting scheduled for Wednesday, May 25, 2005 at 3 p.m. in the Cowles Council Chambers.)

D. Conference Center Feasibility Study Steering Committee. (Meeting held on Monday, April 25, 2005.)

E. Community and Economic Impact Standards Task Force.

Councilmember Stark advised that the Community and Economic Impact Standards Task Force will be meeting in the Cowles Council Chambers on Monday, June 13th at noon.

Councilmember Novak noted the Open House for the Town Center Development as Listed above.

PENDING BUSINESS

None scheduled.

NEW BUSINESS

This item was pulled off of the agenda under Agenda approval.

A. Memorandum 05-97, from City Manager, Re: South Peninsula Hospital, for discussion and possible action.

Recommendation:

That the Council make the following proposal to the Borough and direct the City Manager and City Attorney to work out the details with the Borough Mayor and Borough Attorney. The proposed final agreement will be subject to approval by the City Council and Borough Assembly.

1. The City will agree to transfer title to the hospital parcel in exchange for cash equal to fair market value based upon a current appraisal or a trade for Borough land of equal or greater value.

2 The transfer of title is contingent upon a Deed of Trust, Deed Restriction, or other recorded document as appropriate which is legally binding and states that:

* The parcel is deeded expressly for the purpose of providing a full service publicly owned hospital at the site. All other uses are prohibited unless expressly approved by the Homer City Council. The land and all improvements automatically revert to the City upon violation of this provision.

* The Borough cannot sell the property (land and improvements), operate anything less than a full service, publicly owned and locally controlled hospital, or move the hospital out of Homer or to a different site without the expressed consent of the Homer City Council.

* If the Borough wishes to sell the property (both land and improvements) the City has the right of first refusal.

RESOLUTIONS

A. Resolution 05-65, Of the Homer City Council Approving Noise Control Measures for Small Aircraft in Patterns over the City of Homer, Entering and Leaving the Homer Airport. Stark. Yourkowski.

Memorandum 05-100, from City Manager.

STARK/YOURKOWSKI - MOVED FOR THE ADOPTION OF RESOLUTION 05-65 BY READING OF TITLE.

Mayor Hornaday called for a recess at 8:22 p.m. reconvening at 8:28 p.m.

Councilmember Stark showed a very brief movie excerpt via video.

There was discussion regarding the noise over populated areas and the FAA regulations. This resolution is to include this in the "supplement" and to advised the Flight Service of the concerns. It is to bring the noise concerns to the attention of pilots with the recognition that much of the violation is by out of town pilots. There was pro and con discussion on the need for this Resolution.

VOTE: YES: YOURKOWSKI, STARK.

NO: McLAY, WYTHE, NOVAK, HEIMBUCH.

Motion failed.

B. Resolution 05-66, Of the Homer City Council Establishing Property Tax Rate for Fiscal Year 2005 at 4.00 Mills. Stark. Heimbuch.

Memorandum 05-98, from Councilmember Stark.

Finance Spreadsheet.

STARK/YOURKOWSKI - MOVED FOR THE APPROVAL OF RESOLUTION 05-66 BY READING OF TITLE.

There was little discussion. It was pointed out that during the Committee of the Whole, a public and open meeting, the Council discussed considering a City exemption on primary residences.

HEIMBUCH/STARK - MOVED TO TABLE THIS MAIN MOTION TO THE FUTURE.

There is no discussion on this type of motion.

VOTE:(lay on the table) YES: NOVAK, HEIMBUCH, McLAY, WYTHE, YOURKOWSKI, STARK.

Motion carried.

C. Resolution 05-67, Of the Homer City Council Directing the Library Advisory Board and Library Staff to Develop a User Contribution Plan Designed to Provide a Significant Revenue Stream to Support the Expenses Associated with the New Library Construction and Future Operations.Heimbuch.

HEIMBUCH/WYTHE - I SO MOVE THE MOTION (FOR ADOPTION OF RESOLUTION 05-67) BY READING TITLE.

There was no discussion.

HEIMBUCH/YOURKOWSKI - I'D LIKE TO OFFER AN AMENDMENT IN THE BODY OF THE LANGUAGE THERE, THE SECOND BE IT FURTHER RESOLVED, AND I WOULD LIKE TO SCRATCH THAT ENTIRE SENTENCE. (To delete the entire second "Be it Further Resolved" clause: BE IT FURTHER RESOLVED, that this plan will be developed for implementation in the 2006 budget.)

There was no discussion.

VOTE: (primary amendment 1.) YES: NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

There was some discussion about the Library Director's Memorandum and including that verbiage as an amendment.





















WYTHE/HEIMBUCH - HERE IS MY PROPOSED AMENDMENT TO CHANGE IN THE BEGINNING TO CHANGE DIRECTING TO REQUESTING SO IT WOULD READ: A RESOLUTION OF THE HOMER CITY COUNCIL REQUESTING THE LIBRARY ADVISORY BOARD AND LIBRARY STAFF TO, AND REMOVE "USER CONTRIBUTION" AND SAY DEVELOP A REVENUE GENERATION PLAN DESIGNED TO PROVIDE A SIGNIFICANT REVENUE STREAM TO SUPPORT THE EXPENSES ASSOCIATED WITH THE NEW LIBRARY CONSTRUCTION AND FUTURE OPERATIONS. AND THEN IN THE NOW FOR, THE FIRST NOW FOR WOULD BE AMENDING DIRECTS TO BE REQUESTS AND THEN AGAIN AMENDS USER CONTRIBUTION TO BE A REVENUE GENERATION PLAN AND THEN TAKE AWAY SIGNIFICANT TO BE TO PROVIDE A SUSTAINABLE REVENUE STREAM. (Now Therefore Be It Resolved Clause Changes: NOW THEREFORE BE IT RESOLVED, that the City Council [directs ]requests the Library Advisory Board and the Library staff to develop a revenue generation plan [user contribution plan] designed to provide a[significant] sustainable revenue stream to support the expenses associated with the new library construction and future operation expenses; and)

There was no discussion.

VOTE:(primary amendment 2.) YES: NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

There was discussion pro and con:

City Manager Wrede advised that the Borough City Managers are complaining about the issue of Animal Shelters and Libraries and about not getting any support from the Borough. Mayor Bagley indicated a willingness to reopen the whole issue of Animal Shelters and that he would be willing to discuss Libraries as well. The City Manager stated that he will be pressing forward in this regard.

NOVAK/YOURKOWSKI - MOVED TO TABLE RESOLUTION 05-67.

There is no discussion on this type of motion.

VOTE: (lay on the table) YES: McLAY, YOURKOWSKI, NOVAK.

NO: WYTHE, STARK, HEIMBUCH.

MAYOR: TIE VOTE: YES.

Motion carried.

COMMENTS OF THE AUDIENCE

Audience comments upon any matter.

Ken Castner commented on the Permanent Fund idea and that he really embraces the idea of setting funds aside. He noted that the key is how the funds are invested and how this is structured. If it is used as a revolving bond fund, then it can be used and borrowed from and never lost and it can revolve over and over and over again. This would be a source of things that would require the support of the people and also be a source of funds to pay for a project with an interest rate of 3%. He voiced concern that the City Council is probably not the right organization to manage a bond fund or an endowment and suggested that Council would want a separate fiduciary. He addressed the 60 or 62%, that maybe it is time to look into becoming a Homer Rule City again, maybe its time to write a Charter.

Bill de Creft said that he wanted to put a little reason into this, that airports are designed to guarantee a certain clear area and so that anyone that gives that up early has given that up. There is a regulation called "Careless, Reckless and Lacking in Judgement". This is an offence that is very wide open and almost anyone any time can be accused of violating this, adding that it is careless to turn early. He said that he really would like to know if this is about one or two individuals that are based in Homer that have irritated anybody, whether or not a City Councilmember, and if the City Council has received a complaint on it. He suggested that the adult way to handle this is to get the pilots together and say, "Look you guys we need to talk about this, there is one guy that is ruining this for the rest of you." He suggested that if it is an out of town person that (did not finish), and then relayed how Santa Monica handles noise. He commented about the history of the airport and age of the trees. He voiced his opinion that it is silly to have this come to a regulatory thing, etcetera. He recognized that Council had already dropped the Resolution, but wanted them to feel a little bit better about the way it went. If people are reasonable with each other there is an answer. He said that he is willing to talk to anybody about it and see if it can be straightened out.

Leonard Wells commented on Resolution 05-66 and the tabling and reasons thereof. He advised the Council that he considers this anti business and anti renter and that he thinks it an appropriate deal that all property be taxed at the same level, adding that some businesses could pass on the tax and others couldn't. He voiced his opinion that the tabling was an inappropriate act for the Council to take.

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 Wrede had no comment.

COMMENTS OF THE MAYOR

Mayor Hornaday commended the Parks and Recreation Commission for their hard work on the Community Park Day activities last Saturday, that this was a very good celebration with a lot of participation and noted that the Commission has been working very hard. He voiced appreciation of the City Staff's work and the volunteer work of the Public Works people. He noted that the drainage does need to get fixed at the Karen Hornaday Hillside Park. He reported attending three of the Vietnamese meetings, that these were very positive and good will type meetings and that they gave "us" a very beautiful, hand embroidered picture, the Sword of the Lake, basically the Peace Lake. He commented that Councilmember Stark had advised that this is the lake that John McCain crashed in when he was take prisoner in North Vietnam. He commended those who put the meetings together. He reported on the ground breaking ceremony for the New Library Project and encouraged all to attend the Library Dinners, adding that they might win a trip to Mexico. He reported attending the EDD meetings in Kenai, that they heard from Mayor Begich, Fran Ulmer, the University and Michael Burns with the Permanent Fund and that he too spoke.

COMMENTS OF THE CITY COUNCIL

Councilmember Wythe thanked the Council for their support on the Permanent Fund issue (Ordinance 05-14). She stated that addressing the investment fund issues will be later. She voiced her opinion that this will be of benefit and that Councilmember Yourkowski's daughter (the youngest child she knows) will be able to enjoy profit from this in the coming years, that this will be a very good thing for Homer and its citizenry. She addressed Mr. Wells concerns about the public comment time limit, that having a uniform standard provides people an opportunity to speak, to know that they will be provided a certain amount of time to speak, to prepare their presentation to fit within that time frame and ensures non discrimination. She further noted that this is the time limit recommended by the Alaska Municipal League.

Councilmember Stark responded to Bill DeCreeft that aircraft identification is extremely difficult as the two officers in the video found, adding that only the Flight Service Station personnel can do that. He agreed that landing and take offs are allowed at the airport without notification and that 90 to 95 percent of the aircraft abide by that if only to safeguard their own skin. He advised that the action was merely to put that into the Aviation Supplement for the out of town pilots, who cause most of problem except for the turning in and out of pattern over Kachemak Drive. He pointed out , with regard to the City Manager's comment on a Library Service Area, that the Alaska State Constitution prohibits the City from having a Service Area if that area can be annexed instead.

Councilmember McLay commented on Local Improvement Districts (LIDs) due to all the response tonight on Kachemak Drive LIDs, emphasizing that it was the property owners who requested these LIDs, not the City. He noted that the Council does not proceed in the process unless a majority of the property owners are in favor of proceeding. He voiced appreciation for the public comments, that this is very advantageous and encouraged the public to let the Council know what they want, which is the only way that the Council is going to know. He acknowledged that there are those in LIDs who are not interested in improvements; however the majority rules and if an LID is passed all in that district will be assessed. Mr. McLay apologized that it hurts, adding that he too is in LIDs that he does not need. He emphasized that there are definite needs and that sewer is a very primary need and that there is a lot of fear in Homer due to ground instability, the wetlands and much land that is not percable. He commented that he has lived here a long time and has learned to build septic systems that work; however, the more populated the area becomes these systems cease to work. He stated that this is the reason Council is making this possible to the property owners in Homer, adding that Council is here to serve them.

Councilmember Stark echoed Councilmember McLay and that he thought Mr. McLay's and Snooks Moore's comments were very good. He voice his opinion that one of the problems in some of these areas, with Kachemak Drive exemplifying it more than others, is the need for sewers and that in that area the soils are terrible, the ground water is high and that in that area there are a lot of postage stamp sized lots. He pointed out that the problem cannot really be solved on an individual basis and that it is generally accepted that holding tanks are not a good solution and that the general solution to holding tanks is called a 44 magnum solution. If someone in the middle of that area says they got to have a sewer, well they can't have one since it takes the entire community to get that sewer down there. He reiterated that it is a terrible problem and guessed that this is why the Council is given the solving responsibility.

ADJOURNMENT

There being no further business to come before the Council the meeting was adjourned at 9:03 p.m. The next regular meeting is scheduled for Monday, June 13, 2005 at 7 p.m. The next Committee of the Whole is scheduled for Monday, June 13, 2005 at 4 p.m. All meeting are scheduled to be held in the Homer City Hall Cowles Council Chambers located at 491 E. Pioneer Avenue, Homer, Alaska.





_____________________________________

MARY L. CALHOUN, CMC, CITY CLERK

Approved: ________________________

1. Clerk note: Mr. Roth spoke on Kachemak Drive Phase II and not on Phase I.