Session 04-11, a Regular Meeting of the Homer City Council was called to order at 7:00 p.m. by Mayor Jack Cushing at the Homer City Hall Council Chambers located at 491 E Pioneer Avenue, Homer, Alaska, and opened with the Pledge of Allegiance.

The Council's Committee of the Whole met from 4:03 p.m. to 5:30 p.m. regarding the Regular Meeting Agenda items. Presentation by Asia Freeman on the art project for library, it was noted that Mrs. Cushing is donating her art work and that Memorandum 04-82 will reflect that Devony Lehner's term will be to July 1, 2006.

PRESENT: COUNCILMEMBERS: BECK, FENSKE; LADD, NOVAK, STARK, YOURKOWSKI.

STAFF: CITY MANAGER WREDE

CITY CLERK CALHOUN

ADMIN. ASST. LIVINGSTON

FINANCE DIRECTOR BAUGH

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

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 addition of Memorandum 04-82(A), to the Consent Agenda, reflects the revised term for Devony Lehner of July 1, 2006 instead of July 1, 2005, and the City Manager's report items, and the deletion of Resolution 04-48.

PUBLIC COMMENTS UPON MATTERS ALREADY ON THE AGENDA

Public comments upon any matter on the agenda except Visitor, Representative Paul Seaton and Public Hearing items, Long Range Fiscal Planning, Ordinances 04-22, Amending Homer City Code Regarding Leases, Ordinance 04-23,Expenditure of Homer Accelerated Water and Sewer Program (HAWSP) Funds for the Surveying, Engineering, Design and Construction of Water and Sewer Service Improvements for the Homer Ice Arena/Multi Purpose Facility andOrdinance 04-24, Loan of $450,000.00 to Homer Animal Shelter construction project.

Roark Bron, resident, spoke in favor of and encouraged the Council to adopt Resolution 04-49, Supporting Designation of the Sterling Highway as a State Scenic Byway Between Skilak Lake Road and Anchor Point, that this is beneficial for the community, beneficial for tourism and to connect to the current designated byways on the Sterling Highway South of Anchor Point and Cooper Landing North. He relayed the apparent little misunderstanding at the Kenai Peninsula Borough level that this could lead to additional government regulations. He advised that the only regulations that this imposes is a ban on bill boards on the Sterling Highway.

RECONSIDERATION

A. Memorandum 04-79, from City Clerk, Re: Councilmembers Ladd and Novak Reconsideration of Resolution 04-46(A), Of the City Council of Homer, Alaska Requesting that the Alaska Department of Transportation and Public Facilities Reduce the Speed Limit on the Sterling Highway to 25 mph Between the Homer Middle School and its Intersection with Kachemak Drive. If reconsideration passes Resolution 04-46 is back on the floor as amended.

Recommendation: Move for reconsideration of the vote on Resolution 04-46(A) having voted in favor for the Resolution.

NOVAK/BECK - MOVED FOR RECONSIDERATION OF RESOLUTION 04-46(A).

There was a very brief clarification question.

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.)

Councilmember Ladd asked for Item C. and H. to be placed under the appropriate location on the Regular Agenda.

Item D. was deleted under Agenda Approval.

A. Homer City Council unapproved meeting minutes of May 10, 2004 Regular Meeting. City Clerk. Recommend approval.

B. Ordinance 04-26, Of the City Council Appropriating Funds in the Amount of $180,000.00 to Replace Old PVC Water Pipe with HDPE Pipe along East End Road and Authorizing the City Manager to Execute the Appropriate Documents. City Manager. Public Works. Fiscal Note: Funding from Account 215-829 Expenditure for the East End Road PVC Pipe Replacement, $180,000.00. Recommend introduction and conduct a Public Hearing and Second Reading on June 14, 2004.

C. Resolution 04-41, Of the Homer City Council Amending the Homer Accelerated Roads Program (HARP) Policy and Procedures Manual, Qualifying Criteria and Special Provisions. Road Standards Committee. Road Standards Committee. City Clerk. Recommend adoption.

Placed under Resolutions as item C.

D. Resolution 04-48, Of the City Council Changing the Name of the Road Standards Committee to Transportation Committee. Road Standards Committee. City Clerk. Recommend adoption.

Resolution 04-48 was removed from the agenda under Agenda Approval.

E. Resolution 04-49, Of the City Council of Homer, Alaska, Supporting Designation of the Sterling Highway as a State Scenic Byway Between Skilak Lake Road and Anchor Point. City Manager.

F. Resolution 04-50, Of the City Council Finding the Need to Create the Spruceview Road Reconstruction and Paving Local Improvement District (LID) and Setting a Public Hearing for June 28, 2004. City Clerk. Recommend adoption. .

G. Resolution 04-52, Of the City Council of Homer, Alaska Awarding the Art Project for the New Homer Public Library to Mooserun Metalsmiths, Lynn Naden, Paul Dungan, Lisa Krebs, Tamara Schmidt and Susan Cushing in a Total Amount not to Exceed $40,000.00 and Authorizing the City Manager to Execute the Appropriate Documents. Awarding the Art Project for the New Homer Library. City Manager. Fiscal Note: Budgeted in Library project budget as 1% for the public art. Recommend adoption.

Memorandum 04-81, from Administrative Assistant as backup.

H. Memorandum 04-80, from Mayor, Re: Nominating for Reappointment of Rick Foster as Homer's Representative on the Kenai Peninsula Borough Planning Commission, Appointment of Nyssa Baechler as the Parks and Recreation Advisory Commission Student Representative, and the Appointment of Fred Pfeil to the Road Standards Committee. Recommend confirmation.

Placed under New Business as Item A.

I. Memorandum 04-82(A), from Mayor, Re: Appointment of Devony L. Lehner to the Homer Advisory Planning Commission. Recommend confirmation

LADD/FENSKE - MOVED FOR THE ADOPTION AND/OR APPROVAL OF THE CONSENT AGENDA.

Councilmember Fenske asked for unanimous consent.

VOTE:(Items. A, B, E, F, G, and I.) YES: NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

VISITORS

A. Representative Paul Seaton.

Representative Seaton gave a legislative report:

• Initial Final wrap up written report.

• Budget was passed. 3/4 vote in both houses.

• Draw of $400 million, with price of oil will be only $50 million from the Constitutional Budget Reserve and may not be quite $50 million.

• Next year's budget is anticipated at $25 per barrel of oil, estimated to be a $365 million budget gap, to come out of Constitutional Budget Reserve.

• The House voted on two Constitutional amendments to go to the voters: Constitutional spending cap - a cap on increases of state spending of 75% of the combination of the growth in population and the Consumer Price Index (CPI). Percent of Market Value (POMV - a way of managing the Permanent Fund) calculation for the permanent fund and in that they constructed it so that 50% of that money would go toward personal dividends, 45% would go for education and 5% would be revenue sharing. This is about three times what last years was and represents about $60 million, which, the Representative indicated, is significant. The smaller communities had a minimum of $40,000 last year. However, the Senate did not support the plan. On the Senate side it was 60% for personal dividends and 40% for education.

• Advised that no one really wants a Special Session.

• The House constructed two bond packages, one for education and one for roads and harbors, without a recurrent repayment source the bonds could not go forward. This includes track repairs for the Kenai and Homer for $1.5 million and UAA Kachemak Bay Branch for $1.375 million. Revenue bonds based on sales from the Student Loan Corporation. The General Obligation Bond included $2 million for Kenai Peninsula Borough Roads and included the Deep Water Dock Corrosion at $450,000. Without some revenue source such as POMV the bonds did not move in the House or Senate.

• There were some discretionary money. He announced that $130,000.00 was appropriated for the Homer Animal Shelter Construction Project. This is unrestricted federal receipt money, not general fund money so will not be so easy to veto. He expressed his opinion that this is appropriation is fairly secure.

• Beluga Float Plane improvements are pass through dollars from the Department of Transportation from federal money, same veto status as Homer Animal Shelter.

• Homer, Seldovia, Jakloff Bay, Halibut Cove Ferry planning and design, is held up in budgetary misc at the Federal level.

• Money for future capital improvement projects is going to be scarce so most of these projects will be funded through bonds. He urged the Council to review the Homer Capital Improvement List and to have a diversity of small and large projects.

• Appropriation for Calcium Chloride for Diamond Ridge/Skyline and next year this is up for the gravel to black program.

• Trying to get out of the system of having lots of projects that are continuously extended.

• Confirmed that the City of Homer has made it very clear that they hope the State stays out of the sales tax business.

• Appreciation voiced for the City Resolutions and correspondence, this is very helpful.

• Education was funded with a 10% increase.

• PERS/TERS situation is an ongoing problem.

• Negative impact of the letter from the Mayor's Conference castigating the Legislature and appreciation and thanks voiced that Homer did not participate.

• There was a health care caucus that met. The legislative fixed level has not been visited. There is some real incentive in the health care reimbursement plan model, which includes individual debit cards. Huge savings on administrative costs. Being reviewed and not at the stage of action.

The Mayor and Council thanked Representative Seaton for his work on behalf of the City of Homer, citizens of Homer, of the Community and of the State.

Representative Seaton received a round of applause regarding the announcement of $130,000.00 appropriated for the Homer Animal Shelter Project.

ANNOUNCEMENTS/PRESENTATIONS/BOROUGH REPORT/COMMISSION REPORTS

None scheduled.

PUBLIC HEARING(S)

A. Long Range Fiscal Plan.

There was no Public testimony.

B. Ordinances 04-22, Of the City Council Amending Homer City Code Sections 18.08.020, Lease Negotiating Committee, 18.08.030, Approval of Lease and 18.08.100, Improvements. City Manager. City Clerk. (First Reading May 10, 2004, Public Hearing Tuesday, May 25, 2004, Second Reading on June 14, 2004.)

There was no Public testimony.

C. Ordinance 04-23, Of the City Council Authorizing the Expenditure of Homer Accelerated Water and Sewer Program (HAWSP) Funds for the Surveying, Engineering, Design and Construction of Water and Sewer Service Improvements for the Homer Ice Arena/Multi Purpose Facility. City Manager. PWD. Fiscal Note: $96,000.00 from the HAWSP to the Project. (First Reading May 10, 2004, Public Hearing and Second Reading on Tuesday, May 25, 2004.)

There was no Public Testimony.

YOURKOWSKI/NOVAK - MOVED FOR THE ADOPTION OF ORDINANCE 04-23 BY READING OF TITLE.

Council emphasized, with the City Manager's affirmation, that if this project does not come to fruition at this site with the proposed water and sewer that these funds are not used. Any changes in location or fund amounts must be forwarded back to the Council for further action. Support for the Homer Ice Arena/Multi Purpose Facility was duly expressed.

VOTE: YES: NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

D. Ordinance 04-24, Of the City Council Appropriating a Loan of $450,000.00 from the Special Projects Fund, Account 151-275, to Construct the New Homer Animal Shelter, That the Special Project Fund be Repaid at a Rate of $52,000.00 Per Year (Includes 3% Interest). City Manager. Fiscal Note: From 151-275, Special Project Fund of $450.000.00 to Expenditure Account 151-275, Homer Animal Shelter - Special Project Fund $900,000.00 Includes current budget amount of $450,000.00.(First Reading May 10, 2004, Public Hearing and Second Reading Tuesday, May 25, 2004.) .

Sherry Bess thanked the City Manager, Mayor and Council for all the time they devoted to the Animal Shelter project. She noted that she and everyone, wearing a pink poodle pin, is here asking Council for their final yes vote to appropriate the loan. There were about 25 individuals who raised their hand in support of the new Homer Animal Shelter. The new shelter will bring an end to cold feet, torn clothing, banged heads, carrying water buckets and the animals will be warm, safe and healthy. She noted that she would have a real office and not be doing paper work out of her car. They will be able to welcome kids to the shelter to learn about responsible pet ownership. The standard of care with the new Animal Shelter will greatly increase. This will be an Animal Shelter to be proud of. Right now this is a great supportive Council. Right now there is a great supportive and talented volunteer group who are skilled and ready and willing to help. There is enthusiasm, momentum, motivation and this will continue in fund raising efforts. She relayed that they want to see concrete, block, walls, and a roof. This project has come a long, long, long way and has to continue to go forward. She asked the Council to let the building begin and to please vote yes tonight. She thanked the Council and received a round of applause.

Elizabeth Neumann echoed Sherry Bess' comments, stating that she will volunteer whenever she can, and that she thinks this is great, with a side noted that she is from Anchor Point.

BECK/FENSKE - MOVED FOR THE ADOPTION OF ORDINANCE 04-24 BY READING OF TITLE.

Council commented on the positive aspects of this project. The pink freedom poodles were, humorously, mentioned.

LADD/BECK - MOVED TO AMEND TO INSERT A WHEREAS CLAUSE, WHEREAS, IF THE AMOUNT OF $130,000.00 CONTAINED WITHIN DISTRICT 35 CAPITAL PROJECTS IS SIGNED INTO LAW THEN THE 10 YEAR REPAYMENT NOTE INCLUDING 3% INTEREST SHALL BE ADJUSTED ACCORDINGLY.

There was no further discussion.

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

Motion carried.

There was no further discussion.

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

Motion carried.

There was another round of applause by the audience.

Mayor Cushing called for a recess at 7:44 p.m., reconvening the meeting at 8 p.m.

ORDINANCE(S)

CITY MANAGER'S REPORT

A. City Manager's Report - verbal. The Manager was absent so the Mayor called for Committee Reports, asking for consensus of the Council to return to City Manager report when the Manager returned. There was no objection.

Items discussed were: Funding Plan/Proposed Civic and Convention Center Feasibility Study, Summary of First Steering Committee Meeting for Kachemak Bay Fast Ferry Project, Election costs for regular process and for by mail ballot process, Tustamena home porting in Homer, Local Boundary Commission Notice of remand with attached documents, Leasing of lot to Tustamena for storage, that the USCG used for storage, Leasing or selling AA Mattox Lot 18, Visit by Northern Dynasty the Pebble Mine Contractor on June 14th, Ocean Drive Loop Bluff Erosion Control Project work being done by Phukan that the appeal is on hold and that the assessments bills will go out, Gates Construction should have clean up completed by June and is going well, there may be a little delay on chip pad to the middle of June.

Discussion inspired by the question of whether to lease or sell AA Mattox Lot 18: The Mayor and Council expressed desire that there be more public purpose property and more revenue generating property without sacrificing any tax base or use of the property by the private sector. The City does not have to own land to regulate land and property should not be sold to balance the budget, to accomplish a short term goal. An Request for Proposals (RFP) to ascertain what Lot 18 will net the City is a good idea. If this parcel is not needed for City use it may be better to get this back into the private sector use, back on the tax rolls. There were no objections by the Council to RFPing this property for lease, a place to start. There was concurrence that this property generate revenue.

Council voiced a preference that the City of Homer have a meeting with Northern Dynasty following up the June 14th meeting to focus on the services that the City of Homer and private enterprise has to offer.

The City Manager advised that there is interest from log operations for short term leases on the Spit property previously leased by Gates and that the City has advised these interests that the City's preference is for long term leases on that property.

B. Inactive Records Report

There were no comments.

COMMITTEE REPORT

A. Road Standards Committee. May 11, 2004 Synopsis. Next meeting June 1, 2004 at 6 p.m.

Councilmember and Committee member Yourkowski noted that the next meeting is June 1st and that they are almost done with the Transportation Study.

B. Town Center Development Committee.

Councilmember and Committee member Beck commented on the last meeting, half a day, that they discussed economic and civic anchor and stake holders in the town center development process.

Councilmember and Committee member Novak advised that the next meeting has not be set. ⁽¹⁾

PENDING BUSINESS

None Scheduled.

NEW BUSINESS

A. Consent Agenda Item H. Memorandum 04-80, from Mayor, Re: Nominating for Reappointment of Rick Foster as Homer's Representative on the Kenai Peninsula Borough Planning Commission, Appointment of Nyssa Baechler as the Parks and Recreation Advisory Commission Student Representative, and the Appointment of Fred Pfeil to the Road Standards Committee.Recommend confirmation.

BECK/FENSKE - MOVED TO APPROVE MEMORANDUM 04-80 BY READING OF TITLE.

Mostly, concern was expressed about the renaming of the Road Standards Committee and about the changing of the Committee's mission. If this Committee is going to grow and take on these new duties it should include a member from Port/Harbor.

In response to Council's inquiry, Mayor Cushing advised that Nyssa Baechler is a High School Freshman.

There was discussion about the importance of consolidating Committees, lessening the impact on staff and on meetings overall.

The Road Standards Committee assignment by enabling legislation will be on the next Committee of the Whole agenda.

Councilmember Yourkowski, Road Standards Committee member, pointed out that the Committee has asked for the Mayor to appoint a member with expertise regarding trails. He relayed Committee agreement that with the expansion of their duties they need expertise to address those additional duties.

Mayor Cushing noted that the composition and mission of the Road Standards Committee is on the next Committee of the Whole agenda. He pointed out that, in fact, the Committee was just reviewing the Transportation Plan/Study at their own request. He concluded that it is a good time to review the Road Standards Committee and what Council feels they can handle. He commented that it is very interesting how committees form in the City such as the Friends who operate in their own sphere; same as the Trails Committee, a group of volunteers with a lot of energy and who overlap with Parks and Recreation Commission; just like Homer Animal Friends and Friends of the Library. He stated that if the Road Standards Committee becomes a defacto standing committee for trails and in some degree share with parks, there will be things to work out during the review at the Committee of the Whole.

VOTE: YES: NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

RESOLUTIONS

A. Resolution 04-46(A), Of the City Council of Homer, Alaska Requesting that the Alaska Department of Transportation and Public Facilities Reduce the Speed Limit on the Sterling Highway to 25 mph Between the Homer Middle School and McDonalds and to 30 mph between McDonalds and the Sterling Highway its Intersection with Kachemak Drive. City Council. If reconsideration passes.

Reconsideration Passed.

MAIN MOTION AS AMENDED ON MAY 10, 2004, BACK ON THE FLOOR.

There was some discussion regarding the reason for reconsideration, the preference to have one speed zone and that 25 mph is a little slow. There is a difference between Pioneer Avenue and the Bypass (Sterling Highway). 30 mph seems to be a more equitable speed. Councilmembers relayed experiences of driving this portion of the Sterling Highway at 25 mph.

LADD/NOVAK - MOVED TO MAKE RECOMMENDATION FOR 30 MPH FROM HOMER INTERMEDIATE SCHOOL (HOMER MIDDLE SCHOOL) THROUGH TO KACHEMAK DRIVE ON THE STERLING HIGHWAY.

There was a brief comment about going 25 mph.

Councilmember Ladd called for the question and there were no objections.

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

Motion carried.

Discussion included pedestrian crosswalks and signage at the top of the hill advising folks, as they roll into town, that Homer is a pedestrian friendly town and that pedestrians have the right of way. Differential speed limits during different seasons was discussed and consideration by the State suggested, such as between Memorial Day and Labor Day.

In response to Council, the City Manager advised that he does not know the status of the State's Transportation Study, or of the Bartlett project, or of the repaving of the Sterling Highway.

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

Motion carried.

B. Resolution 04-51, Of the Homer City Council Adopting and Approving the Attached Long Range Fiscal Plan. City Manager. Council.

STARK/FENSKE - MOVED FOR THE ADOPTION OF RESOLUTION 04-51 BY READING OF TITLE.

Mayor Cushing called for a recess at 9:09 p.m., reconvening the meeting at 9:15 p.m.

Implementation of Long Range Fiscal Plan revenue generators will be on the next agenda. It was noted that it is now up to the Council to figure out how to implement this plan and that there are some tough decisions to make. Homer residents were encouraged to review the plan. Mentioned during discussion:

Service areas, Economic base, Decrease property tax with increase on sales tax, Next year need more revenue generating private sector businesses, Economic base from other operations such as across the Inlet. The Ordinance for Library Bond Issue or loan for introduction at the June 14th Regular meeting and therefore may be discussed during the Committee of the Whole. A draft Ordinance, not for introduction for the Committee of the Whole, regarding an increase in sales tax and possible reduction in property tax on the June 14th Committee of the Whole agenda. The June 14th date provides time for two or three public hearings. There are two meetings in June, one meeting in July and one meeting in August prior to the October ballot deadline. There are some critical questions that need to be answered with regard to the Library Project - how to pay for it, is it going to be a seasonal tax, is it going to be a tax that sunsets when the Library is paid off, and are the tax increase and whether or not to borrow money tied together - if one goes down do they both go down or are they separate issues/questions? There was concurrence that the Council needs to discuss the Ordinances during the Committee of the Whole.

Mayor Cushing encouraged the Council to be prepared for discussion on these items during the Committee of the Whole and to get things done in a consolidated manner. Mayor Cushing encouraged budgeting time, 15 minutes for each item, including the Road Standards Committee items. He noted the importance for the Council to be ready to discuss Long Range Fiscal Plan 4.8 Revenue Enhancement Options/Criteria for Setting Priorities, Short Term and Long Term Options - specifically mentioning pages 254 and 255 of the packet. ⁽²⁾ Budget reduction options on page 258 - Budget Reduction Options, and priorities on page 259, Revenue Enhancement Options.

Council discussed the need to prioritize implementation.

There was quite a bit of discussion on whether or not to conduct worksession(s).

Finance Director Baugh advised that he will be out of state for the June 14th meeting and encouraged the Council to get their questions to him or to drop by and see him. He will put together a draft Ordinance regarding the sales tax issue, to give the Council a starting point. He emphasized that the Animal Shelter and Library are expenditures above and beyond the regular expenditures.

Council asked for specific figures, of what will be needed to pay the basic expenditures. The Mayor and Council asked for recommendations/suggestions from the City Manager and Finance Director on where costs can be cut or services that can be eliminated to be realistic. Such as, the Library may be only open as much as it can be with the existing staff.

Finance Director Baugh advised that there will probably be two budgets this year, one that will deal with the inclusion of a new sales tax and one dealing with no new sales tax. He pointed out that he has to submit a balanced budget.

Snow plowing was used as another example of a possible decrease in service - instead of plowing at 2 inches, plowing may be done at the 6 inch build up of snow.

LADD - MOVED TO AMEND FISCAL PLAN PAGE 254, LIMIT CITY EXPENDITURE TO ANNUAL REVENUE, BASE BUDGET UPON ANNUAL REVENUE.

Motion was not seconded and not recognized.

VOTE: YES: NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

C. Consent Agenda Item C. Resolution 04-41, Of the Homer City Council Amending the Homer Accelerated Roads Program (HARP) Policy and Procedures Manual, Qualifying Criteria and Special Provisions. Road Standards Committee. Road Standards Committee. City Clerk. Recommend adoption. .

FENSKE/YOURKOWSKI - MOVED FOR ADOPTION OF RESOLUTION 04-41 BY READING OF TITLE.

LADD/STARK - MOVED TO AMEND SPECIAL PROVISIONS ITEM 7. AMENDED TO READ: PEDESTRIAN AMENITIES MAY SHALL BE INCLUDED IN ALL NEW PROJECTS.

There was some discussion about some roads not needing pedestrian amenities.

FENSKE/ OFFERED A FRIENDLY AMENDMENT TO LEAVE THE SHALL IN, NOT CHANGE SHALL TO MAY AND TO ADD AT THE END OF THE SENTENCE UNLESS EXEMPTED BY THE CITY COUNCIL.

There was no objection to the Friendly Amendment.

FENSKE/NOVAK - CALLED FOR THE QUESTION.

VOTE: (call for the question) UNANIMOUS CONSENT. NON OBJECTION.

Motion carried.

Amendment Reads: Pedestrian amenities shall be included in all new projects unless exempted by the City Council.

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

Motion carried.

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

Motion carried.

COMMENTS OF THE AUDIENCE

Audience comments upon any matter.

There were no audience comments, there was one written comment submitted by Dr. Bill Marley regarding Saltwater Drive and Hillside Acres water and sewer assessment/improvement districts.

COMMENTS OF THE CITY ATTORNEY

City Attorney Tans was not present.

COMMENTS OF THE CITY CLERK

City Clerk Calhoun announced that the ballot explanation that was posted, placed in the City Kiosks, on the Clerk's website and any other distribution is hereby withdrawn.

COMMENTS OF THE CITY MANAGER

City Manager Wrede had no comment.

COMMENTS OF THE MAYOR

Mayor Cushing issued several congratulations:

Library, $100,000.00 from US Department of Agriculture, with a good showing for that check transmittal.

Eagle Scouts, Christopher Ellington and Gavin Browne

High School Graduations.

Homer two kids in the Olympics: Tela O'Donnel and Stacey Borgman - close to having qualified.

The Sports Teams

Academics.

So, onto summer and to the tourist season and the whole different form of what happens in Homer.

COMMENTS OF THE CITY COUNCIL

Councilmember Stark inquired as to when the Council was going to have some input into the Water and Sewer Master plan, adding that he has brought this up a couple of times because he does not really want to see a master plan that shows all these tentacles going all these places that are just uneconomic to do. He emphasized that someone with local knowledge is better able to tell a consultant that this just won't fly due to the various physical and economic conditions.

City Manager Wrede advised that he will pass this on to Carey Meyer and will indicate that the Council wants to get involved far before there is a final product. He queried the Council as to their preference regarding format or process for review and input on the Master Plan. The Council indicated that any process would work.

Councilmember Stark, advising that he attended a meeting in Soldotna last Friday and Saturday with a number of elected officials, reported that he had a long chat with the Secretary of Agriculture, who may be our new banker, and that he encouraged the Governor to not veto the $130,000.00 for the Animal Shelter or the $1.23 million for the float plane base on Beluga Lake.

Councilmember Fenske commended the work on the cross walks, agreed with signage and that there should be a sign at the top of the hill stating that Homer is a pedestrian friendly town. He stated that the fiscal planning document is a great tool and hoped that the public would pay close attention and not take offense to the dialog that takes place at the Council table. He emphasized that the Council is doing their best to provide an equitable way to pay for the City amenities. He voiced his opinion that the community is trying its best to attain some greater good and that all may have converging or diverging trails to get to that good. He stated that he is glad it is summer and thanked Dean Baugh for his vary astute umping and directing of the Little League and described his antics.

Mayor Cushing advised the Council that the Kenai Peninsula Borough Planning Commission, last night, voted down a recommendation of the Homer Advisory Planning Commission regarding a right of way vacation, that this will be forwarded to the Council to veto and encouraged the Council to study up on this matter.

City Manager Wrede advised that he will have City Planner McKibben at the next meeting.

Councilmember Ladd asked the administration to contact the schools to educate the kids to use the sidewalks and the crosswalks. He encouraged DOT to do signage around town. He thanked Finance Director Baugh for providing the Council the place to drink ⁽³⁾, that it is now up to them to drink if they want to prioritize the budget. He noted the City Manager's involvement.

Mayor Cushing stated, "Good work Administration."

ADJOURNMENT

There being no further business to come before the Council the meeting was adjourned at 10:13 p.m. The next Regular Meeting is scheduled for Monday, June 14, 2004 at 7 p.m. The next Committee of the Whole meeting, scheduled for Monday, June 14, 2004 at 4 p.m. All meetings scheduled to be held in the Homer City Hall Council Chambers located at 491 E. Pioneer Avenue, Homer, Alaska.

_____________________________________

MARY L. CALHOUN, CMC, CITY CLERK

Approved: ______________

clerk@ci.homer.ak.us, 235-3130, home number 235-2843.

1. Next meeting is scheduled for June 24th at 6 p.m. in the City Hall Council Chambers.

2. Clerk's Note: Short Term Options: Raise Property Taxes, Raise the Sales and Use Tax, Raise Sales Tax Cap, Implement Seasonal Sales Tax, Implement a Bed Tax, A Combination of Tax measures, Redirect HAWSP AND HARP Revenues, Raise User Fees, and Differential User Fees. Long Term Options: Service Areas, State Assistance, Cooperation with Bor9ough, Economic Development, Annexation, Formation of a New Borough. Criteria for Setting Priorities: How much would it raise? Timetable. Administrative Costs. Political support. Tax Equity/Business, Tax Equity Generally, Opportunities/Threats, Diminishing Returns. Revenue Enhancement Options: Fisheries Business/Export Tax, Marine Fuel Tax, Economic Development/Port Marketing, Institute a Fisheries Landing Tax, Increase User Fees, Lease More Land, Institute Revenue Parking, Differential Fee Schedules, Business License.

3. Reference to the Long Range Fiscal Plan.