Session 09-12 a Regular Meeting of the Homer City Council was called to order on May 26, 2009 at 7:00 p.m. by Mayor James C. Hornaday at the Homer City Hall Cowles Council Chambers located at 491 E. Pioneer Avenue, Homer, Alaska, and opened with the Pledge of Allegiance. 

 

PRESENT:         COUNCILMEMBERS:             HOWARD, LEWIS, NOVAK, ROBERTS,                                                                             WYTHE, ZAK

 

                                    STAFF:                                  CITY MANAGER WREDE

                                                                                    CITY CLERK JOHNSON                                                                                                                CITY ATTORNEY KLINKNER

                                                                                    CITY PLANNER ABBOUD           

                                                                                    FINANCE DIRECTOR HARVILLE          

PORT & HARBOR DIRECTOR HAWKINS

PUBLIC WORKS DIRECTOR MEYER

                                                                                   

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 to 5:30 p.m. regarding Regular Meeting Agenda items.

 

AGENDA APPROVAL

 

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

 

The agenda was amended to add:

 

ANNOUNCEMENTS/PRESENTATIONS/BOROUGH REPORT/COMMISSION REPORTS - Homer Senior Citizens, Inc. – Annual Membership Meeting, May 21, 2009; PUBLIC HEARINGS - Ordinance 09-22(A)(S), Substitute Ordinance Amending Homer City Code 14.04.040 and Homer city Code 14.08.080 to Provide for the Determination of Sewer and Water Rates on a Biennial Basis, with New Rates Becoming Effective on July 1. Novak/Howard; Resolutions 09-47 & 09-48, Written public comments; CITY MANAGER’S REPORT - Supplemental Manager’s Report; Letter from Petro Marine Services, Re: Marine Diesel Pricing and Ultra Low Sulfur Diesel.

 

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

 

PUBLIC COMMENTS UPON MATTERS ALREADY ON THE AGENDA

 

Frank Griswold, city resident, commented on Resolution 09-49, referencing a legal brief by former City Attorney Tans regarding zoning districts and the City’s Comprehensive Plan. The Comprehensive Plan applies to three commercial districts and should apply to the Homer Spit. Mr. Griswold asked why Council is dealing with the Spit separately when over $100,000 was paid to Agnew:Beck consultants to deal with the entire community. He called Councilmember Novak’s explanation of the Comprehensive Spit Plan as “truthiness”. He does not buy the financial aspect of the separate Spit plan. Why give special authority to stakeholders when they will show up and be given a higher status than the public? Council is putting private interests ahead of public interests.

 

Leonard Wells, city resident, questioned Ordinance 09-27 and why both a new contract and addition to a current contract are being handled the way they are. The current contract should be finished before doing amendments. The new contract should stand on its own and be put out for bid to see if anyone is interested. There may be a conflict of interest with the current person handling the contract and it should be looked at. Resolution 09-51 provides a contract to PND to make repairs on the docks, and it is PND who made the recommendations for the dock repairs. As to Resolution 09-52, he is curious of the City’s cost of taking the lots off the property tax roll.

 

Susan Schulmeister, Acting Deputy for the National Wildlife Refuge, supports Resolution 09-50 and applauded the City for taking lead. The Refuge has tried, unsuccessfully. The joint city refuge trail is important for visitors, school groups, and local residents. The Refuge will submit a letter in support of the City’s proposal. As to Resolution 09-52, on behalf of the Alaska Maritime Refuge, Ms. Schulmeister requests City support for the Friends of Alaska National Wildlife Refuge to acquire a block of five lots surrounded by Islands and Ocean Visitor Center. The property is immediately adjacent to the Beluga Slough Trail, about 100 ft. from the moose interpretative station, and right below the view of the Islands and Ocean lobby and terrace. The property is crucial to the visitor and school children’s experience and trails. There are 60,000 visitors, and 2,000 school children receiving education on the trail per year. The area is a bird and moose habitat. The Alaska Maritime Refuge tried to acquire the lots in 1992, as part of the original footprint of Islands and Ocean Visitor Center.  

 

Kevin Hogan, city resident, does not dispute Frank Griswold’s concerns regarding Resolution 09-49. Mr. Hogan’s suggestion is the Port and Harbor Advisory Commission as the stakeholders who could review the Spit Comprehensive Plan. The bylaw amendment in Resolution 09-53 could include renaming the commission to the Port and Harbor and Homer Spit Commission. The commission thought it would be good to make the student representative available to the commission, although there have been no applicants. He does not disagree with Mr. Wrede’s letters to Petro Marine, but would rather see the correspondence initiated by the Mayor and Council and handled more diplomatically.

 

Sharon Baur, Vice President of Friends of the Alaska National Wildlife Refuge, spoke in favor of Resolution 09-52. The Friends are in the process of writing a grant to purchase five lots in front of Islands and Ocean Visitor Center. The property has potential environmental benefits and is one of the most productive ecosystems in the world. She asked for support of the Friends in writing the grant for the purchase of the lots.

 

RECONSIDERATION

 

None.

 

CONSENT AGENDA

 

(Items listed below will be enacted by one motion. If separate discussion is desired on an item, that item may be removed from the Consent Agenda and placed on the Regular Meeting Agenda at the request of a Councilmember.)

 

A.        Homer City Council unapproved meeting minutes of May 11, 2009 Regular Meeting.        City Clerk.                                                                                                     

                                                                                                                                   

B.        Memorandum 09-67, from Mayor, Re: Reappointment of Kent Haina to the Advisory Planning Commission.

 

Mayor Hornaday called for a motion for the adoption of the recommendations of the consent agenda as read.                                                                            

 

WYTHE/LEWIS - SO MOVED.

 

There was no discussion.

 

VOTE: YES. NON OBJECTION. UNANIMOUS CONSENT.

 

Motion carried.

 

VISITORS

 

None.

 

ANNOUNCEMENTS/PRESENTATIONS/BOROUGH             REPORT/COMMISSION REPORTS

 

Mayor Hornaday expressed appreciation to the local firefighters for the structures saved in the fire out East End Road. 

 

A.        Mayor’s Proclamation - ‘National Public Works Week’ – May 18-24, 2009

                                                                                                                                   

Mayor Hornaday read the proclamation and offered a thank you to the Public Works Department.

 

B.        Alaska’s Senior Benefits Program                                                                 

 

C.        Homer Senior Citizens, Inc. – Annual Membership Meeting, May 21, 2009

 

Mayor Hornaday reported he attended the Homer Senior Citizens, Inc. annual meeting, their board meeting lasting five minutes. Fred Lau is retiring after 12 years.                                                                               

 

Bill Smith, Kenai Peninsula Borough Assemblyman, reported the Assembly is working on putting together their budget. The Mayor’s proposed budget is status quo, with four areas of major changes. The Mayor’s department is up 15%, the school district cut by $3M, and non departmental budget cuts affecting various non profits. The exception is the Kenai Peninsula Borough college, which the Mayor suggested raising the contributions to. The biogas plasticization coupled anaerobic digestion discussion will soon be heard. Assemblyman Smith’s interest in the digestion system is due to Homer’s landfill that is to be closed in less than five years. We will have to start trucking everything up to the Central Peninsula. By starting to use the organic waste and processing it here, we can extend the life of the landfill and keep our costs down. The anaerobic digestion system can benefit the area by generating electricity. It will take extra work to get involved in processing organic waste, but reducing waste and extending the life of the landfill would be beneficial.

 

PUBLIC HEARING(S)

 

A.        Ordinance 09-19, An Ordinance of the City Council of the City of Homer, Alaska, Amending the Homer City Zoning Map to Rezone Portions of the Urban Residential (UR) to Residential Office (RO). City Manager/Planning. Introduction May 11, 2009, Public Hearing and Second Reading May 26, 2009.                                                                                 

 

            Memorandum 09-52 from City Planner as backup.                                        

            Memorandum 09-61 from City Attorney as backup.                                                                                                                                                                                                   Page 49

 

Mayor Hornaday opened the public hearing.

 

Frank Griswold, city resident, commented there are a lot of unanswered questions in the staff report. Council should get answers to the questions Mr. Griswold sent to City Planner Abboud before voting. He read the explicit definition of spot zoning in Cabana vs. Kenai Peninsula Borough, noting the explicit definition given by the Supreme Court differs from that provided by the City Attorney. Councilmember Zak has a conflict of interest as his employee owns property in area proposed for rezone. Mr. Griswold sent a letter citing Homer City Code and believes it was overlooked and should now be considered. A lot of property owners have not requested the rezone, and a majority does not support it. The prerequisite from the Planning Commission has not been met. The proposed rezone is for 2.13 acres owned and operated by Conifer Woods. Tenants were not notified and should have been prior to the Planning Commission meeting.

 

Tarri Thurman, Vice President of Kachemak Bay Family Planning Clinic, testified. The clinic has provided low cost to no cost reproductive health care for citizens in Homer for the past 25 years. The clinic is located at the corner of Ben Walters and Nielsen Circle. They have purchased property adjoining the current office and are looking at expanding their resource center and outreach programs. They do have signatures of the majority of property owners. The proposed rezone is in the Comprehensive Plan. She encouraged Council to vote in favor of Ordinance 09-19 as it would be a good thing for the community.

 

Mayor Hornaday closed the public hearing.

 

Mayor Hornaday called for a motion for the adoption of Ordinance 09-19 by reading of title only for second and final reading.

 

ZAK/LEWIS – SO MOVED.

 

ROBERTS/HOWARD - MOVED TO REMAND BACK TO THE PLANNING COMMISSON TO ADDRESS PAPER IN PACKET.

 

Councilmember Roberts requested the Planning Commission address the revised rezone spread sheet, different from the one that originally came forward with the ordinance. A letter in the packet would change the count again. There are a couple valid questions about the reasons for the rezone that should be addressed a little more clearly. 

 

VOTE: (remand) YES. ROBERTS, WYTHE, HOWARD, NOVAK, LEWIS

 

VOTE: NO. ZAK

 

Motion carried.

 

B.        Ordinance 09-22(A), An Ordinance Amending Homer City Code 14.040.040 and Homer City Code 14.08.080 to Provide for the Determination of Sewer and Water Rates on a Biennial Basis, With New Rates Becoming Effective on July 1. Novak/Howard. Introduction May 11, 2009, Public Hearing and Second Reading May 26, 2009.                     

 

            Ordinance 09-22(A)(S), An Ordinance Amending Homer City Code 14.040.040 and Homer City Code 14.08.080 to Provide for the Determination of Sewer and Water Rates on a Biennial Basis, With New Rates Becoming Effective on July 1. Novak/Howard.

 

Mayor Hornaday opened the public hearing.

 

Leonard Wells, city resident, suggested Council follow the language discussed at the earlier Committee of the Whole for the effective date of increased rates. The new rates would show up on the August billing.

 

Larry Goode, city resident, has owned the Ocean House Inn for ten years. He operates his business four months out of the year and his water/sewer bill for 2008 was $5,300. The amount is nearly as high as his property tax assessments. In 2007 water/sewer rates were half that amount. It does not count the money he has put into energy efficient washers and dryers, outdoor meters, toilets and shower heads. In a year of high unemployment and high uncertainty his business is on track to have the worst year since he opened ten years ago. Businesses will be hanging on by their fingernails this summer. It is unthinkable for the City to be even considering raising water/sewer rates. Council should put a banner over Homer saying “small business owners beware.” He asked Council to have pity on small business owners and stop putting more expense on their shoulders.

 

Kevin Hogan, city resident, owns a small business and is building a processing plant to provide jobs in the community. A drill rig is putting in a well as he can’t trust the City to provide stable, affordable water to run his business. He will have salt water wells to provide the majority of his water needs. Council is targeting businesses to carry the load of operating the water system. The problem with the water system is the cost of payroll. Until you start looking at the expense side of the equation, the same problem will exist. If you lay the burden of water on commercial users you will have less business. It says the opposite that Homer is open for business. He asked Council to look at reducing the costs. On the sewer rate, having the extra meter for water that is not going down the sewer pipe will only be applied during the summer months. Businesses are being doubled billed by an outfall sewer charge and sanitary sewer charge. If you are going to allow the metering of water that’s not going into the sanitary sewer it should not just be seasonal and not just residential.

 

Paul Hueber, city resident, owns the Homer Inn and has seen rates rise astronomically. He asked Council to consider the commercial side, as rates have gone up disproportionately to the residential.

 

Bill Marley, city resident, commented that water/sewer rates have been a contentious issue for many years. Homer has the most expensive water/sewer system on the Kenai Peninsula. It is inherent on the users to pay for it. The new rates are to his advantage as he uses 300 to 400 gallons per month. Business rates are 152% greater for water and 27% greater for sewer. Homer is the only community that charges additional rates for businesses. Homer is the world’s largest halibut port. When he came to Homer 40 years ago there were two canneries on the Spit; now there is no processing. We truck fish to British Columbia for processing. Businesses provide a tax base and jobs and that should be highly considered. Businesses that went home for the winter were getting the half rate. Now they will no longer get that. At $45 per month for water/sewer at no usage per month, it was still a benefit to the people, most of them on the Spit. Those people got big benefits years ago from water/sewer improvements.

 

City Manager Wrede clarified the customer charge of $25 per month will apply to seasonal businesses, but there is no additional charge for no usage of water.

 

Mayor Hornaday closed the public hearing.

 

Mayor Hornaday called for a motion to substitute Ordinance 09-22(A)(S) for Ordinance 09-22(A).

 

HOWARD/NOVAK - SO MOVED.

 

WYTHE/HOWARD - MOVED TO AMEND THE TITLE BY STRIKING “BECOMING EFFECTIVE JULY 1” AND REPLACING IT WITH “TO TAKE EFFECT WITH THE FIRST FULL MONTH OF SERVICE BEGINNING AFTER JULY 1, 2009.”

 

There was no discussion.

 

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

Motion carried.

 

WYTHE/ROBERTS - MOVED TO AMEND LINE 28 BY STRIKING “IN THE FIRST BILLING CYCLE AFTER JULY 1” AND REPLACING IT AGAIN WITH “THE FIRST FULL MONTH OF SERVICE BEGINNING AFTER JULY 1, 2009.”

 

There was no discussion.

 

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

 

Motion carried.

 

WYTHE/ROBERTS - MOVED TO AMEND LINE 44 BY AGAIN STRIKING “IN THE FIRST BILLING CYCLE AFTER JULY 1” AND REPLACING IT WITH “THE FIRST FULL MONTH OF SERVICE BEGINNING AFTER JULY 1, 2009.”

 

There was no discussion.

 

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

 

Motion carried.

 

The seasonal discount from June 15 through September 15 for a second meter to meter water is existing language.

 

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

 

Motion carried.

 

Mayor Hornaday called for a motion for the adoption of Ordinance 09-22(A)(S) by reading of title only for second and final reading.

 

NOVAK/HOWARD SO MOVED.

 

Councilmember Novak commented the public hearing process was used for Ordinance 09-22(A)(S) and Resolutions 09-47, 09-48, and 09-48(S). Larry Goode talked about his expense of $5,300 per year but didn’t indicate the percentage of his total gross. Every business has expenses. Kevin Hogan brought up not targeting businesses. That is false, as businesses are not being targeted. The City knows how much each group of users (residential, commercial, and bulk) uses. Depending on what group you fall in, you will pay your share of water you use for the total cost for the water used by that group. Users in the different groups are not being asked to pay a portion of other user groups. The main cost in small business is payroll. Expenses may be adjusted, but there are certain fixed expenses. Extra sewer/water metering and the ability to meter how much water goes through the sewer is an option to cut the sewer rate. As to equity between residential and commercial, there is no real intent to say one should be the same as the other.

 

Councilmember Roberts called for a point of order to keep comments to Ordinance 09-22(A)(S).

 

Public Works Director Meyer explained the seasonal meter program was generated on residential use. It could be extended to other users on the system.

 

WYTHE/NOVAK - MOVED TO AMEND LINE 34 BY STRIKING THE HYPHEN AND THE STATEMENT “CALLED A SEASONAL SEWER METER FOR EACH CUSTOMER THAT DESIRES” AND STARTING AGAIN ON LINE 35 STRIKE “DURING THE SUMMER GROWING SEASON OF JUNE 15 THROUGH SEPTEMBER 15 AND THROUGH THE END OF THAT.

 

City Manager Wrede asked City Attorney Klinkner to comment on the amendment. City Attorney Klinkner stated the ordinance before Council has the language to which the amendment applies. It will amend the code section. There is not a serious issue of public notice, as it does not adversely affect the public. The amendment provides additional opportunity for savings.

 

Councilmember Roberts commented she has a meter at home. She asked Public Works Director Meyer if the meter would work for businesses?

 

Public Works Director Meyer explained the meters provided under the program are plastic to keep the cost down. They are generally removed from the hose bib on a home before freezing temperatures. There will be additional costs to install the meter; residential owners bear the cost of purchasing and maintaining the meters. A larger meter may have to be installed inside. The concept of giving businesses a break when they use water that does not go into the sewer system is reasonable.

 

Public Works may have to determine the criteria for which a meter is acceptable. It is a small price in exchange of paying for sewage on water that does not go into the sewer system.

 

Asked if the ordinance title needed to be modified to incorporate the change, Attorney Klinkner answered it does not.

 

Safeway is already using a meter to measure water used that does not go into the sewer system year round.

 

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

 

Motion carried.

 

Councilmember Novak commented the two year rate cycle will make it easier for users and will help the City. In the next two years there may be more users on the system that may allow for a decrease in rates. 

 

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

 

Motion carried.

C.        Resolution 09-47, A Resolution of the City Council of the City of Homer, Alaska Establishing a Schedule of Rates and Fees for Water Service, and Repealing Resolution 07-119(A). Novak/Howard.                                                                         

 

            Memorandum 09-63 from Finance Director as backup.                                

            Memorandum 09-64 from Finance Director as backup.                                

            Memorandum 09-74 from Finance Director as backup.                                

 

Mayor Hornaday stated testimony previously given will be incorporated in Resolution 09-47.

 

Mayor Hornaday opened the public hearing.

 

Lloyd Moore, city resident and owner of Moore & Moore Services and Quick Draw H2O, said it is easy to charge more money to customers. People on East End Road need to be put on the water line. They want to hook up, but no one will let them. They are already getting water trucked to them. Apartments around town with numerous dwellings pay one fee; most cities charge $15 to $20 per unit. He has been trucking water for over 25 years and knows a lot about water rates. Everyone should listen to the tapes of the rate study by the Water Board. A good rate model was put together a few years ago and it has been thrown aside. Kachemak City residents need to be added to the system. Trucking water is the dumbest thing in the world, is not productive, is stupid, and inefficient. He advised Council to go back to square one and to quit raising rates.

 

Sharon Minsch, city resident, noted that Council has been wresting with water/sewer rates for a long time. As long as the City is operating the water/sewer as an enterprise fund, it is a business and needs to be treated as such. The cost of the water/sewer lines is year round. If exemptions are made, people will do other things with water. All of Homer depends on the water/sewer system, not just the 1,400 customers. She hopes there is a compromise between a 100% enterprise system and a 100% paid for out of taxes system. In reality there are 12,000 people that depend on water. Lloyd Moore’s points about Kachemak City and apartment complexes are good. It costs the same for a gallon of water and everyone should pay the same.

 

Mike Dye, Land’s End Resort, commented that knowing rates are going up substantially does not make business easier. In 2009 we are facing economic issues. We have to operate the water system as a business by cutting costs and dropping rates. Land’s End is dropping rates this year and cannot take the additional costs and pass them off with increased rates. Expenses need to be looked at. Land’s End is wondering if they can maintain employees. No time is a good time to increase rates, but especially not in a year like we are facing now.

 

Leonard Wells, city resident, commented with the water/sewer as an enterprise fund, part of the enterprise is the people outside the city. Part of what needs to be collected by the City is money from those folks. It should be turned over to a manager whose job is to make a profit or break even. The City general budget could help support some of the water department’s expenses. The water/sewer system has provided a lot of infrastructure that is spread out and expensive. Council needs to start working on the next two-year structure now so these conversations can go on between the users and the Council.

 

Mayor Hornaday closed the public hearing.

 

Mayor Hornaday called for a motion for the adoption of Resolution 09-47 by reading of title only.

 

NOVAK/HOWARD – SO MOVED.

 

Councilmember Novak indicated the resolution brings forth discussion and input. One example Sharon Minsch brought up is that everyone benefits from water. People in the community not hooked up to water benefit as well. With the water rate amendment, people pay for the water their group (residential, commercial, or bulk) consumes. There is $200,000 in both water and sewer depreciation, funds reserved to offset the costs of maintaining the system.

 

NOVAK – MOVED TO POSTPONE CONSIDERATION OF RESOLUTION 09-47 UNTIL THE FIRST MEETING IN JUNE.

 

Councilmember Novak withdrew the motion and asked for Councilmember Howard’s input.

 

Councilmember Howard stated these are not pleasant times for City Councilmembers, as no one enjoys raising rates. Based on the seven months of study Council has done, with the same answer coming up, the fact is we do not have enough users to meet the cost of operation. It is a highly regulated system, requiring workers to be licensed with a higher salary requirement. Chemicals are expensive and the electricity to operate the Water Treatment Plant is extremely high. On average, the water rate differential will be approximately $5 per month. For water to be treated and delivered to your faucets at the rate of less than one penny a gallon is an inexpensive commodity. Good water and sewer systems are an economic factor in our property values and for our health.  

 

Councilmember Roberts concurred with Councilmember Howard. Council has worked for many months and talked and thought about it a lot. It is not a pleasant task, but it is Council’s responsibility not to lose money for the City with the water system. To the people that have testified, Council has looked at adding connections and is working on it. Council is looking for solutions from the public.

 

WYTHE/NOVAK - MOVED TO AMEND ON LINE 61 STRIKING “ON JULY 1, 2009” AND REPLACING IT WITH “THE BILLS FOR THE FIRST FULL MONTH OF SERVICE BEGINNING AFTER JULY 1, 2009.”

 

There was no discussion.

 

VOTE: YES. NON OBJECTION. UNANIMOUS CONSENT.

 

Motion carried.

 

Councilmember Wythe commented Council has been working on water rates for two years. It is not a wonderful time to increase rates; there is not ever going to be a wonderful time to increase rates. Until we can infill and add more services the water system is not going to become any less expensive to operate and maintain. Money is needed in the depreciation fund as it is an old system. Maintenance is needed and in the event of a catastrophic failure of the system we would need matching funds for repair and replacement. It is the responsibility of the Council. Small and large business, including the City of Homer is going through an economic downturn. The rate is to stabilize a utility that is a necessity of the community. The rate formula will hopefully get us through the next few years.

 

Councilmember Zak stated we are still treating it as an enterprise fund, but it is not one. There have been suggestions about outsourcing it. Anyone who wants to hook in should be allowed to. The resolution funds depreciation 20%; that is the whole cost of the increase. Under these economic times if we are able to not fund depreciation, there would be no need to increase costs. In another couple of years we could get more infrastructure. He does not support the resolution with the current 20% for depreciations; he would support it without depreciation and a raise in the fees. After Council has a chance to look at more rate schedules it could be readdressed. We need to treat it more like an enterprise fund and figure how far out we would be able to see an increase in revenue. There may be ways to fund depreciation with a new system.

 

Councilmember Novak commented it is difficult to look at all sides of the issues. You can’t make everyone happy; it is a difficult time for everybody. We still have to maintain the City system and keep the City solvent. Council’s responsibility is to the City.

 

NOVAK/ZAK - MOVED TO REMOVE THE 20% DEPRECIATION AND BASE THE RATES ON THE SAME MODEL WE ARE USING.

 

Councilmember Zak commented it was a move toward a solution in these economic times. It saves people from facing a rate increase.

 

Councilmembers Roberts, Wythe, and Lewis expressed opposition to the amendment.    

 

Councilmember Lewis has lived without water and sewer. It is not pleasant or fun. All rates are going to be going up. If something breaks we need to have the money to fix it.

 

Councilmember Howard considers this an enterprise fund and Council is the Board of Directors for the fund. If something breaks, a repair job cannot be put off for several months. We have to have money for replacement if something breaks. The citizens are expecting us to be good stewards.

 

Councilmember Wythe noted the funds that we were receiving from sales tax to support the enterprise fund (HAWSP) have gone away. Five months of collecting no sales tax resulted in no tax collected for the water fund. There is not a decent depreciation status and no funds in reserve to pay for a loan that would cover anything that might happen. Without HAWSP money from sales tax we have to have funds in depreciation for a failure in the system.

 

Councilmember Zak said it is easy to raise the rates and put away funds for depreciation. The operation of funds is critical; hooking people up and getting people already on the system hooked in. There are other things from a business perspective that would better serve the people than raising the rates and calling it depreciation.

 

Councilmember Roberts commented that figures from Finance of adding people to the system results in $33,000 that does not make the difference. Council has looked at it carefully.

 

Councilmember Zak said figuring a way to add onto the current infrastructure and adding Kachemak City residents would be sensible. There is no strategic plan for the water and sewer system.

 

Councilmember Roberts noted the maps provided by Public Works and Council has looked at them closely. It is hoped more people will join the water and sewer systems.

 

Councilmember Wythe recognizes a plan needs to be developed, both short and long term to meet the needs. In the interim, Council is responsible for insuring the enterprise fund is properly allocated monies to in the event of a failure.

 

Councilmember Zak said waiting to act for two years is reasonable for businesses to give a boost to economic development.

 

VOTE: NO. LEWIS, ROBERTS, WYTHE, HOWARD, NOVAK

VOTE: YES. ZAK

 

Motion failed.

 

Councilmember Novak stated based on the model, it is the fairest rate based on the amount of water each user group consumes. Commercial users are using more water, so will pay more.  

 

Councilmember Zak referenced Kevin Hogan’s comment on drilling salt water wells on the Spit. If commercial users are forced into these situations it will hurt the overall fund a lot more. There is a lot more planning that needs to be done. He hopes Council figures out a long term plan.

 

Mayor Hornaday commented disagreement in Homer is nothing new. Facts from the census indicate Homer lost 200 people last year. A number of people have told him they are moving from Homer because they cannot afford to live here.

 

VOTE: (main motion as amended) YES. NOVAK, LWEIS, ROBERTS, WYTEH, HOWARD

VOTE: NO. ZAK

 

Motion carried.

 

D.        Resolution 09-48, A Resolution of the City Council of the City of Homer, Alaska Establishing a Schedule of Rates and Fees for Sewer Service, and Repealing Resolution 07-120(A). Novak/Howard.                                                                        

 

            Memorandum 09-63 from Finance Director as backup.                                

            Memorandum 09-65 from Finance Director as backup.                                

 

            Resolution 09-48(S), A Resolution of the City Council of the City of Homer, Alaska Establishing a Schedule of Rates and Fees for Sewer Service, and Repealing Resolution 07-120(A). Novak/Howard.                                                                            

 

            Memorandum 09-63 from Finance Director as backup.                                

            Memorandum 09-65 from Finance Director as backup.                                

            Memorandum 09-70 from Finance Director as backup.                                

            Memorandum 09-74 from Finance Director as backup.

 

Mayor Hornaday opened the public hearing.                        

 

Lloyd, Moore, city resident, commented it is too expensive for people to live here. Homer is not the only community having problems with water rates, it is happening everywhere. He is the middle man. When the City raises rates he passes the costs on. He always tries to keep costs down and run his business efficiently, tracking people very close so they don’t stop to have cigarette breaks. The success of his company is minutes and seconds. In looking at this as a businessman, he knows he can make money with this water system. People are moving from Homer, leaving for the winters, as it is a lot cheaper to buy property and groceries in Arizona.

 

Leonard Wells, city resident, commented the sales tax that goes to the general fund could be used to help run the so called enterprise fund. He has lived in large apartment complexes where the complex for 18,000 people built their own water and sewer and ran it themselves because the city didn’t want the responsibility of doing so. He suggests small businesses like Bed and Breakfasts come to the city and put in for taking responsibility of the meter yourself, not the business, and your water rates will go down by a third.

 

Mayor Hornaday closed the public hearing.

 

Mayor Hornaday called for a motion to substitute Resolution 09-48(S) for Resolution 09-48.

 

NOVAK/HOWARD – SO MOVED.

 

There was no discussion.

 

VOTE: YES. NON OBJECTION. UNANIMOUS CONSENT.

 

Motion carried.

 

Mayor Hornaday called for a motion for the adoption of Resolution 09-48(S) by reading of title only.

 

NOVAK/WYTHE – SO MOVED.

 

WYTHE/ NOVAK - MOVED TO AMEND LINE 8 AND LINE 77 STRIKING “ON JULY 1, 2009” AND REPLACING “WITH THE BILLS FOR THE FIRST FULL MONTH OF SERVICE BEGINNING AFTER JULY 1, 2009.

 

There was no discussion.

 

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

 

VOTE: (main motion as amended) YES. HOWARD, NOVAK, LEWIS, ROBERTS, WYTHE

VOTE: NO. ZAK

 

Motion carried.

 

Mayor Hornaday called for a recess at 8:43 p.m. and reconvened the meeting at 8:50 p.m.

 

E.         Ordinance 09-23, An Ordinance of the City Council of Homer, Alaska, Amending the FY 2009 Operating Budget by Appropriating Funds in the Amount of $52,870 for Inspections and Evaluations of the Pioneer Dock, Deep Water Dock, and the Fish Dock. City Manager/Public Works Director. Introduction May 11, 2009, Public Hearing and Second Reading May 26, 2009.                                                               

 

            Memorandum 09-60 from Public Works Director as backup.

 

Mayor Hornaday opened the public hearing.

 

There was no public testimony.

 

Mayor Hornaday closed the public hearing.

 

Mayor Hornaday called for a motion for the adoption of Ordinance 09-23 by reading of title only for second and final reading.  

 

LEWIS/WYTHE - SO MOVED.

 

There was no discussion.

 

VOTE: YES. NON OBJECTION. UNANIMOUS CONSENT.

 

Motion carried.

 

F.         Ordinance 09-24(A), An Ordinance of the Home City Council Adopting HCC 10.04.090 Requiring Vessels Moored in the City Harbor to be Underway at Least Twice a Year. City Manager/Port and Harbor Director. Introduction May 11, 2009, Public Hearing and Second Reading May 26, 2009.                                                               

 

            Memorandum 09-66 from Port and Harbor Director as backup.                   

 

            Ordinance 09-24(A)(S), An Ordinance of the Home City Council Adopting HCC 10.04.090 Requiring Vessels Moored in the City Harbor to be Underway at Least Twice a Year. City Manager/Port and Harbor Director.                                             

 

            Memorandum 09-68 from Port and Harbor Director as backup.       

 

Mayor Hornaday opened the public hearing.

 

Patty Boily, 32-year city resident, stated she sent the Mayor and Council a letter when she first heard of the ordinance. Memorandum 09-68 changed the 24-hour rule to just moving the vessel and turning around. On at least two days of each calendar year, separated by three months is written in the ordinance. The summer season is only three months, and moving vessels could be a problem in many instances. She read the letter that was not received by many Councilmembers and the City Manager. She pays $1,000 a year to moor their vessel in the harbor, and has since 1992. There must be other ways in dealing with abandoned vessels.

 

Pete Wedin, city resident and Port and Harbor Advisory Commissioner, favors the ordinance. We don’t want to get in a situation like the Husky II in Seldovia. There are 500 ft. of vessels in the way; some could create an environmental hazard. It is a working waterfront situation, and derelict vessels are taking up room a working vessel could be using. There is a loss of revenue whether it is a small boat. The ordinance does not create a huge burden on anyone.

 

Leonard Wells, city resident, commented the ordinance has no ability to change the current vessel’s condition. The City has not decided what it will do when a vessel does not comply and is not paying any revenue. Many don’t pay. Council is not willing to foreclose and do what is necessary to take ownership. Council needs to decide what the City will do when someone not in compliance for a significant amount of time does not pay their moorage.

 

Sharon Minsch, city resident, supports the ordinance, although there is a piece missing. Some people leave their boats in the harbor all winter when it’s frozen. The ordinance could be tweaked to include a piece for the smaller recreational boats. Mrs. Minsch commented on the water conservation signs in the harbor, stating they were awesome.

 

Mayor Hornaday closed the public hearing.

 

Mayor Hornaday called for a motion to substitute Ordinance 09-24(A)(S) for Ordinance 09-24(A).

 

WYTHE/NOVAK – SO MOVED.

 

There was no discussion.

 

VOTE: YES. NON OBJECTION. UNANIMOUS CONSENT.

 

Motion carried.

Mayor Hornaday called for a motion for the adoption of Ordinance 09-24(A)(S) by reading of title only for second and final reading.

 

ROBERTS/NOVAK – SO MOVED.

 

NOVAK/ROBERTS - MOVED TO AMEND LINE 18 TO READ SEPARATED BY AT LEAST 60 DAYS INSTEAD OF THREE MONTHS.

 

There was no discussion.

 

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

 

Motion carried.

 

Councilmember Roberts commented there is no provision in the ordinance to require removal of a boat from the water, you just have to travel ¼ mile out the harbor past Pioneer and Deep Water Docks separated by at least 60 days. She hopes it addresses what the recreational users will need.

 

Councilmember Wythe offered support for the ordinance, and suggested Council come back to consider the hardship exemption separately and penalties.

 

Councilmember Zak is not convinced the ordinance will solve the problem. It almost creates separate issues for private, smaller recreational boat owners. He would support going after the truly derelict vessels that take up space. He doesn’t want to see it become a city issue for the liability. It is an issue throughout the state of Alaska in all ports and harbors. He would like more supportive information from other ports and harbors.

 

Councilmember Roberts agrees Council should look for ways to address hardship issues for both commercial and recreational boat owners. At the Committee of the Whole meeting a penalty was discussed for non-payment of moorage for 90 days.

 

Asked if the failure to comply with the underway policy gives the City recourse to address the derelict vessels, City Attorney Klinkner answered that it does.

 

VOTE: (main motion as amended) YES. HOWARD, NOVAK, LEWIS, ROBERTS, WYTHE

 

VOTE: NO. ZAK

 

Motion carried.

 

ORDINANCE(S)

 

A.        Ordinance 09-25, An Ordinance of the City Council of Homer, Alaska, Accepting New LifePak Cardiac Monitor / Defibrillator / Pacer Equipment Purchased by the Southern Region EMS Council with Code Blue Funding and Appropriating the Required Local Match in the Amount of $18,277.35 Pursuant to Resolution 07-99. City Manager/Fire Chief. Recommended dates: Introduction May 26, 2009, Public Hearing and Second Reading June 8, 2009.                                                                      

 

            Memorandum 09-73 from Fire Chief as backup.

 

Mayor Hornaday called for a motion for the adoption of Ordinance 09-25 for introduction and first reading by reading of title only.                                                                                                  

 

LEWIS/WYTHE – SO MOVED.

 

There was no discussion.

 

VOTE: YES. NON OBJECTION. UNANIMOUS CONSENT.

 

Motion carried.

 

B.        Ordinance 09-26, An Ordinance of the City Council of Homer, Alaska, Amending the FY 2009 Capital Budget by Appropriating $10,000 from the Port Reserves Fund for the Purpose of Deep Water Dock Buoy Repair. City Manager/Port and Harbor Director. Recommended dates:  Introduction May 26, 2009, Public Hearing and Second Reading June 8, 2009.                                                  

 

            Memorandum 09-75 from Port and Harbor Director as backup.

 

Mayor Hornaday called for a motion for the adoption of Ordinance 09-26 for introduction and first reading by reading of title only.                                                                                                  

 

WYTHE/LEWIS – SO MOVED.

 

There was no discussion.

 

VOTE: YES. NON OBJECTION. UNANIMOUS CONSENT.

 

Motion carried.

 

C.        Ordinance 09-27, An Ordinance of the City Council of Homer, Alaska, Amending the FY 2009 Budget by Appropriating $13,000 from the Sustainability Fund for the Purpose of Funding a Contract Amendment with Deerstone Consulting and a New Contract with Joel Cooper Related to Energy Consumption and C02 Emissions Tracking. City Manager. Recommended dates: Introduction May 26, 2009, Public Hearing and Second Reading June 8, 2009.

 

Mayor Hornaday called for a motion for the adoption of Ordinance 09-27 for introduction and first reading by reading of title only.                                                                                                  

 

WYTHE/NOVAK – SO MOVED.

City Manager Wrede asked for a motion to amend the title to add a comma after Deerstone Consulting and “assigning that contract to Joel Cooper.”

 

ROBERTS/WYTHE - SO MOVED.

 

There was no discussion.

 

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

 

Motion carried.

 

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

 

Motion carried.

 

CITY MANAGER’S REPORT

 

A.                City Manager’s Report                                                                                  

Supplemental City Manager’s Report  

 

  1.  Library Landscaping: At the last meeting, I mentioned that the Library Advisory Board wanted to use $30,000 appropriated for LEED landscaping to also pay for a few more hours per week for a parks employee to maintain the landscaping until it can get established. I told you I would bring an ordinance to this meeting which reappropriated some of that money from a reserve account to salaries. Since the last meeting, the LAB decided that it would rather make a contribution to the Future Farmers of America for students to perform the same work. We think this is a good idea because it provides support for youth activities and supports an organization that is struggling with funding issues. It also does not require any additional staff hours, salary, or benefits. We went back and checked the project description originally submitted to Council and it simply says “library landscaping”. So, we think this is an allowable use of the money and that no budget amendment is necessary. The Future Farmers suggest a donation of $10.00 per hour. The LAB estimates the cost will be 4 hours per week or $120.00 per month. It should take two full seasons to get the landscaping established. The LAB has also agreed on a landscaping map and plan which we have shown to the Mayor and can make available at the meeting if you want. The plan is very similar to the original which was cut from the construction budget. Please let me know if you have any comments or concerns.
  2. East End Road Fire Follow-Up: The City opened the campground at Karen Hornaday Park for displaced residents during the height of the fire for no charge. At least 12 City firefighters actively fought the fire and the Chief committed an engine, a command vehicle, and a utility truck to the effort. The Division of Forestry has credited the local firefighters (Homer and KESA) with being the first on the scene and doing the most to save all of the structures that were saved. The local responders did one heck of a job and they all deserve our thanks.
  3. KESA Meeting: We are scheduled to have our second transition meeting with KESA on Wednesday the 20th. I will provide a verbal summary at the meeting if requested and may have some laydown materials.
  4. Fuel Prices / Harbor: The City has been fielding a large number of complaints about fuel prices in the harbor. The information some harbor users have provided caused enough concern here about impacts to the City’s economy that we felt compelled to start asking a few questions. Attached is a copy of a letter that I wrote to Petro Marine requesting information and a copy of Petro Marine’s Response.
  5. City Lots for Sale: This agenda contains a resolution sponsored by Council Member Wythe which declares certain lots to be no longer needed for a public purpose and directs the Administration to take the necessary steps to prepare for a public sale. You will note that we must do an appraisal on these lots before we can move forward with a resolution authorizing the sale and establishing the terms and conditions of the sale. Getting the current resolution on the floor provides a good opportunity to discuss some procedural issues. With regard to the old Library Lot, Beth noted in our discussion that we have placed it out for bid twice now and received no acceptable bids. She was asking about alternative ways to go about selling it. Under the code as written, there seems to be two possibilities. One, is that there is a provision for the Manager to go for a “negotiated sale” if the lot has already gone out to bid and no acceptable bids were received. Council would have to approve of this approach and establish the terms and conditions by resolution. The other option is a public auction. So, fertile grounds for discussion here!
  6. Lillian Walli: The agenda contains a resolution sponsored by Council Member Wythe that authorizes the Administration to initiate road, water, and sewer LIDS in the Lillian Walli Estates Subdivision. Again, getting this resolution on the table will provide an opportunity to discuss some procedural issues. Carey has already done a fair amount of work on potential LIDs there and we can perhaps use this information to decide the boundaries of the proposed LIDs, the scope of the proposed improvements, and the process we would follow to involve and inform the property owners.
  7. Homer Airport Improvements Update: Attached is a copy of the Homer Airport Improvements Update and Revised Compensatory Mitigation Proposal for your information. Please note that DOT/PF is requesting comments by June 10, 2009.
  8. Seward Economic Forum: Council Member Bryan Zak recently attended an Economic Forum in Seward as part of his new job. Attached is a copy of Seward’s Economic Development Goals and comments on achievements over the past few years. Bryan thought this would be of interest to the Council and the Homer EDC and requested that we provide copies. 

 

SUPPLEMENTAL REPORT

 

  1. Stimulus Funding: Over the past two weeks, the PW Department has become interesting in partnering Dr. Keith Schimel, Technology Matrix Corporation, and the Northern Building Science Group. Technology Metrix Corp. is the developer of an anaerobic pump using digester technology that would be employed at the sewer treatment plant to turn sludge into methane for heating or electricity production. This system could be more efficient that the system proposed in the CIP because it will recover more methane and the process will use less electricity. Funding for programs like this (a demonstration project) is available from Department of Energy and the government would pay 80% of the cost. There is a lot to talk about here. We still have many questions. Cost of the project is estimated to be 2.5 Million with $500,000 match. Will provide more details at the meeting.
  2. Boiler Replacement / Middle School: Council recently asked for more information regarding the necessity of replacing the boiler this year. Carey will be prepared to talk about that at the meeting and based upon the questions we get, we can follow-up with further action. We have already placed this out to bid (appearing in the paper for the first time this week) because of the long lead time. If we do this, we need to get it done before school starts again.
  3. KESA Transition Update: Last week we had the second transition meeting with KESA. A copy of the updated transition plan provided by the borough is attached. The bottom line is that KESA believes they will be ready to assume full control of Fire and EMS in the Service area by July 1. The Borough has accepted the City’s offer to continue to provide Dispatch Services to KESA for an additional $35,000 per year. The existing contract for emergency call taking and dispatch between the City and the Borough is being amended to accomplish that (draft). We gave the Borough a draft Mutual Aid Agreement for discussion which includes payments to the City if the mutual aid calls are significantly unbalanced. We plan to have the new dispatch contract and the Mutual Aid Agreement before the Council for consideration at the meeting on June 22.
  4. DOT/PF: The City and the Chamber both received updates from DOT/PF last week on the bridge rehabilitation project on the Sterling Highway. I will pass out information about that at the meeting.                                                                                                                                                           

 

City Manager Wrede reported on the Homer Airport Improvements Update and Revised Compensatory Mitigation Proposal. It is an important project for the City’s infrastructure. Comments may be made to the State of Alaska, DOT by June 10th.

 

Asked to comment on the runway improvements to the airport, City Manager Wrede explained the improvements appear to be the same as first time around. The Beluga Lake float plane base is there for the public. People may tie up and get fuel. A new road from the floatplane base to the runway is proper to prevent planes from being hauled across the causeway. It is not safe and backs up traffic. A new taxiway is proposed with more taxi parking areas for planes, both civil and commercial. There is a new road from the Kachemak road side to access a tie down area. The plan has impacts on wetlands, drainage, and on Beluga Lake. The public is encouraged to look at the project.

 

In the supplemental report the #2 boiler replacement is addressed. There is an Invitation to Bid out to get the process started so the project may be completed this year before the students return. DOT visited the Chamber and the City Manager to talk about the bridge construction projects. They held a public meeting in Ninilchik and ensured people in the visitor industry the traffic delays would be minimal.

 

It was requested the Boiler Replacement for the Middle School be added to the June 8th Committee of the Whole meeting.

 

Public Works Director Meyer provided information on the proposal by Northern Building Science Group of an anaerobic pump using digester technology that would be employed at the sewer treatment plant to turn sludge into methane for heating or electricity production. The system would recover methane with a process that uses less electricity. The Department of Energy (DOE) is offering funding with the government paying 80% of the cost. It would take waste products and turn them into valuable resources for the community. The cost of the project is estimated to be $2.5M with a $500,000 match.

 

John Woodward, Northern Building Science Group, has been a Homer area resident since 1969. The digester technology is 80% efficient, with a 90% reduction of solids, which could eliminate the septic lagoon. The system would produce an investment payback within three to four years of using the system. It could provide year round heat for 30 homes. Pressure on the existing landfill would be reduced, allowing for an expanded life span. The system has been extensively researched by the DOE. There are units in operation outside the U.S. that are operating just fine.

 

Asked about the time line, Allison Butler, Northern Building Science Group, reported Dr. Schimel, Technology Matrix Corporation, submitted a letter to the DOE today. In one week a concept paper is due, with a brief outline of the technology and how Homer will be involved. DOE will review the papers and notify potential applicants. The process is variable, with the latest notification in mid July, or immediately. There will then be 31 days to complete the application. Dr. Schimel will take part of the technical aspect of the application. There will then be a commitment to come up with a 20% match; some could be in-kind.

 

A Worksession for the June 8th meeting was requested to review the proposal.

           

B.        Bid Report                                                                                                     

 

C.        Question of the Week – What is your #1 positive and #1 negative comment about the services the City of Homer provides?                                                                                           

 

D.        Records Inventory Report – Report of Records Destruction                        

 

COMMITTEE REPORT

           

A.        Public Arts Committee

 

B.        Transportation Advisory Committee

 

C.        Permanent Fund Committee

 

D.        Lease Committee

 

PENDING BUSINESS

 

None.

 

NEW BUSINESS

 

None.

 

RESOLUTIONS

 

A.        Resolution 09-49, A Resolution of the City Council of Homer, Alaska, Creating a Stakeholder Committee to Provide Advice in the Development of the Spit Comprehensive Plan, Authorizing the City Clerk to Advertise for Interested Participants, and Repealing Resolution 09-08(A). City Manager. 

 

Mayor Hornaday called for a motion for the adoption of Resolution 09-49 by reading of title only.

                                   

WYTHE/HOWARD - SO MOVED.

 

HOWARD/WYTHE - MOVED TO AMEND THE TITLE OF THE RESOLUTION TO READ: A RESOLUTION OF THE CITY COUNCIL OF HOMER, ALASKA, REPEALING RESOLUTION 09-08(A).

 

Councilmember Howard stated after meeting with the consultant of the Homer Spit Comprehensive Plan she is confident the proper public hearings will be held to allow interested parties to participate. Working through the Planning Commission will speed up the process. We are losing valuable time.

 

City Attorney Klinkner suggested the now, therefore, be it resolved clause be amended to repeal Resolution 09-08(A). The whereas clauses should be stricken.

 

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

 

Motion carried.

 

WYTHE/ZAK - MOVED TO STRIKE THE SECOND, THIRD AND FOURTH WHEREAS REPLACING THE SECOND WHEREAS WITH: THE HOMER ADVISORY PLANNING COMMISSION SUBSEQUENTLY DETERMINED THAT THEY WILL HAVE ADEQUATE TIME TO MEET THE NEEDS OF THE PLANNING PROCESS.

 

There was no discussion.

 

VOTE: YES. NON OBJECTION. UNANIMOUS CONSENT.

 

Motion carried.

 

WYTHE/HOWARD - MOVED TO AMEND THE NOW THEREFORE BE IT RESOLVED TO READ: NOW, THEREFORE, BE IT RESOLVED THAT THE HOMER CITY COUNCIL HEREBY REPEALS RESOLUTION 09-08(A).

There was no discussion.

 

VOTE: YES. NON OBJECTION. UNANIMOUS CONSENT.

 

Motion carried.

 

City Clerk Johnson read the amended resolution. Councilmember Wythe corrected the resolution to reflect the amendments she made.

 

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

 

Motion carried.

 

B.        Resolution 09-50, A Resolution of the City Council of Homer, Alaska, Expressing its Support for a City Application to the Alaska Coastal Impact Assistance Program (CIAP) to Reconstruct Approximately 850 Feet of the Beluga Slough Trail. City Manager.  

 

Mayor Hornaday called for a motion for the adoption of Resolution 09-50 by reading of title only.                      

 

WYTHE/NOVAK - SO MOVED.

 

There was no discussion.

 

VOTE: YES. NON OBJECTION. UNANIMOUS CONSENT.

 

Motion carried.

 

C.        Resolution 09-51, A Resolution of the City Council of Homer, Alaska, Awarding the Contract to Inspect Three City Docks/Make Recommendations for Repair to the Firm of PND, Inc. of Anchorage, Alaska, in the Amount of $52,870 and Authorizing the City Manager to Execute the Appropriate Documents. City Clerk.                        

 

            Memorandum 09-69 from Public Works Director as backup.

 

Mayor Hornaday called for a motion for the adoption of Resolution 09-51 by reading of title only.

           

LEWIS/WYTHE - SO MOVED.

 

Brief discussion ensued on the $600,000 settlement set aside for the Pioneer Dock. The intent is to take funds from the settlement agreement on the Pioneer Dock to complete any cathodic work on that dock. For repairs to the Fish and Deep Water Docks, repair monies will come from the Port and Harbor reserves.

 

Asked if the three accounts should be listed in the resolution, City Attorney Klinkner advised the resolution is to award the contract. Ordinance 09-23 allocated funds for the repairs to the docks.

 

VOTE: YES. NON OBJECTION. UNANIMOUS CONSENT.

 

Motion carried.

 

D.        Resolution 09-52, A Resolution of the City Council of Homer, Alaska, Expressing its Support for an Application to be Submitted to the Alaska Coastal Impact Assistance Program (CIAP) by the Friends of Alaska National Wildlife Refuges to Acquire Five Lots Adjacent to and Surrounded by Property Already Owned by the U.S. Fish and Wildlife Service. City Manager.

 

Mayor Hornaday called for a motion for the adoption of Resolution 09-52 by reading of title only.

           

NOVAK/LEWIS - SO MOVED.

 

Councilmember Novak expressed support for the Refuge to obtain properties adjacent to the Beluga Slough Trail. It would be good to preserve for future generations.

 

Asked of the lost tax revenue to the City, City Manager Wrede stated there are no appraisals and we only have the Borough assessed values.

 

Councilmember Zak expressed support of the resolution. There are six lots across the street on the water side of the trail; he hopes the Refuge plans to acquire them in the future.

 

Councilmember Wythe requested the Borough assessed values of the six properties be available for the next meeting.

 

VOTE: YES. NON OBJECTION. UNANIMOUS CONSENT.

 

Motion carried.

 

E.         Resolution 09-53, A Resolution of the City Council Amending the Bylaws of the City of Homer Port and Harbor Advisory Commission. City Manager/Port and Harbor Advisory Commission.      

 

            Memorandum 09-72 from Port and Harbor Advisory Commission as backup.

 

Mayor Hornaday called for a motion for the adoption of Resolution 09-53 by reading of title only.

                                                                                                                                     

WYTHE/HOWARD – SO MOVED.

 

There was no discussion.

VOTE: YES. NON OBJECTION. UNANIMOUS CONSENT.

 

Motion carried.

 

F.         Resolution 09-54, A Resolution of the City Council of Homer, Alaska, Declaring that Lots 43, 44, and 79, Oscar Munson Subdivision, and Lot 2, Homer Public Library Subdivision Number 2, are No Longer Needed for a Public Purpose and Authorizing the City Manager to Take the Appropriate Steps to Make Them Available in a Public Sale. Wythe.                                                                 

 

Mayor Hornaday called for a motion for the adoption of Resolution 09-54 by reading of title only.

WYTHE/ZAK - SO MOVED.

 

Councilmember Wythe explained the old library property was put out to bid a couple of times. Council discussed it during Land Allocation Plan discussions for a couple of years. The objective is to move forward on the sale of the property.

 

City Manager Wrede reported the property has been listed for sale two times already, with no acceptable bid. The revenues are to be used to pay down the loan on the new library. The property cannot be put out for sale by owner, as the code is specific about disposing City property. It can be done by public auction or negotiated sale. An appraisal is still needed and a resolution must be passed to set out the terms of the negotiated sale.

 

Councilmember Wythe would like to consider the negotiated sale, but not as a fire sale. We need to sell the lot for appraised value. The funds need to be allocated back to the library, as every month we are paying interest.

 

City Attorney Klinkner presented his comments at this time and excused himself at 9:51 p.m. to catch the plane back to Anchorage. 

 

Councilmember Novak asked City Manager Wrede to verify lots 43 & 44 on the seawall are owned by the City. Those lots are owned by the City and there is enough land for someone to build there, possibly on pilings.

 

VOTE: YES. NON OBJECTION. UNANIMOUS CONSENT.

 

Motion carried.

 

G.        Resolution 09-55, A Resolution of the City Council of Homer, Alaska, Authorizing the City Manager to Initiate the Process of Establishing Road, Water, and Sewer Local Improvement Districts (LIDs) within the Lillian Walli Estates Subdivision. Wythe.

 

Mayor Hornaday called for a motion for the adoption of Resolution 09-55 by reading of title only.                      

 

WYTHE/ZAK - SO MOVED.

 

Councilmember Wythe related these properties were identified during land use discussions. The City cannot relinquish ownership until roads, water and sewer are in. Other land owners are interested and it will put more people on the water/sewer system.

 

VOTE: YES. NON OBJECTION. UNANIMOUS CONSENT.

 

Motion carried.

 

COMMENTS OF THE AUDIENCE

 

Patty Boily, city resident, commented on the erosion on the Sterling Highway near Mile 153 as written in McKibben Jackinsky’s news column. DOT is monitoring the situation. Since last fall 25 ft. of waterside bluff property has been lost. A new road will have to be put in. She questioned a contingency plan if the highway washes out. Mrs. Boily asked Council to take action with DOT. As to the Cousin’s property on the Spit, Devil Fish Lagoon, they are in violation of the Corps of Engineer permit.

 

Leonard Wells, city resident, commented on Resolution 09-52. It states the sale of City properties will be at fair market value. Assessed value is not fair market value. What is the cost to the City of lost property tax? As to Resolution 09-55, he hopes Council will notify property owners within an LID they will be forced to join water/sewer connections.

 

Bill Smith commented on Devil Fish Lagoon. The land towards the shore side is a public right of way. The blue bus and berm were pushed over off the property and off the right of way. The berm was pushed into Louie’s Lagoon. Anything parked on the berm is in the right of way or in Louie’s Lagoon. In Kachemak City water rates were raised by 30%. He used 985 gallons last month at a cost of $110. The City doesn’t really run an enterprise fund. The Homer Spit is treated separately as a cost payer. Spit costs are split for all users. It is a politically manipulated enterprise system. The City made the decision not to serve piped water outside the City.  

 

COMMENTS OF THE CITY ATTORNEY

 

City Attorney Klinkner reported he gave Council a memorandum regarding the court case on zoning matters. Another opinion was received in a related case of a land conforming use. The ordinance was upheld and it was remanded to the City for further determination. Mr. Klinkner will provide more information at the next meeting.

 

COMMENTS OF THE CITY CLERK

 

City Clerk Johnson had no comments.

 

COMMENTS OF THE CITY MANAGER

 

City Manager Wrede had no comments.

COMMENTS OF THE MAYOR

 

Mayor Hornaday expressed appreciation to local firefighters for saving all the structures.

 

COMMENTS OF THE CITY COUNCIL

 

Councilmember Novak commented on the statements made of people leaving Homer, the challenging economic times, with people losing jobs. In December Council recognized it would be a financially challenging year. There is no sales tax on non processed food and expenses have been cut. Both of those measures cost quite a bit of money.

 

Councilmember Zak noted the people will get a chance to vote on the 4.5% sales tax on non prepared food items. His concern is budget cuts to the nonprofits. Tonight there were two issues he felt like he was on the outside. He appreciates speaking his piece; there will be better solutions for the future. The Alaska Aces play their third game, and he hopes they will win 5-1.

 

Councilmember Wythe would like the City to provide a letter encouraging DOT to move forward for relocation plans of the Sterling Highway near the high erosion area. As to Mr. Wells’ statement on the City’s properties, fair market value is established by an appraisal. On the Devil Fish Lagoon, it is private property. There is no enforcement in place, it is a right-of-way for the Spit and belongs to the State. There are no enforcement abilities in rights-of-way and with Corps of Engineers violations. There is not a lot of ability to do anything with the property; some people think it is a wonderful place to see.

 

Councilmember Roberts thanked the Homer Volunteer Fire Department for their work on the East End Road fire. The water/sewer rates were discussed at the Committee of the Whole and discussed for weeks. She wishes Council did not have to vote to increase rates, but they need to be financially responsible for the City.

 

Councilmembers Howard and Lewis had no comments.

 

ADJOURNMENT

 

There being no further business to come before the Council the meeting was adjourned at 10:07 p.m. by Mayor James C. Hornaday. The next Regular Meeting is scheduled for Monday, June 8, 2009 at 7:00 p.m. The next Committee of the Whole is scheduled for Monday, June 8, 2009 at 4:00 p.m. All   meetings scheduled to be held in the Homer City Hall Cowles Council Chambers located at 491 E. Pioneer Avenue, Homer, Alaska.

 

_______________________________

JO JOHNSON, CMC, CITY CLERK

 

Approved: _____________________