Session 01-11, a Regular Meeting of the Homer City Council was called to order at 7:32 p.m. by Mayor Cushing at the Homer City Hall Council Chambers located at 491 E. Pioneer Avenue, Homer, Alaska, and opened with the Pledge of Allegiance.

Council's Committee of the Whole met from 4:10 p.m. to 6 p.m. Agenda Items were the Regular Council Agenda.

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

STAFF: ACTING CITY MANAGER ROBL

CITY CLERK CALHOUN

POLICE OFFICERS SHEALY AND JAMES

AGENDA APPROVAL

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

The agenda was approved by consensus of the City Council with the following changes: Additional Public hearing information received after packets were printed. Substitute page 8. and Addition to the Consent Agenda as Item G. Memorandum 01-35(S), from City Clerk, Re: Starr Bros. Big Top Tented Circus.

PUBLIC COMMENTS UPON MATTERS ALREADY ON THE AGENDA

There were no public comments.

RECONSIDERATION

CONSENT AGENDA

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

A. Homer City Council regular meeting unapproved minutes of May 14, 2001. Recommend approval.

B. Ordinance 01-22, Of the City Council of Homer, Alaska Accepting and Appropriating a Bureau of Justice Assistance Matching Grant for the Replacement of Bullet Proof Vests in an Amount up to $2,406.87, Appropriating the City's Match of up to $2,406.87 and Authorizing the City Manager to Execute the Appropriate Documents. HPD. City Manager. Fiscal Note: Grant: Revenue Acct. 151.4521.739 and Expenditure Acct. 151.5202.739. City's Match: Expenditure Acct. 151.5231.160. Recommend adoption for first reading, public hearing date to be June, 11th and Second reading to be June 11, 2001.

Memorandum from Chief of Police as backup.

C. Resolution 01-33, Of the City Council of Homer, Alaska Acknowledging the Results of the Surplus Equipment Sale and Authorizing the City Manager to Proceed with the Disposition of the Surplus Equipment. Port/Harbor. City Clerk. Recommend adoption.

Memorandum from Port/Harbor Director as backup.

D. Resolution 01-34, Of the City Council of Homer, Alaska Extending the City of Homer Jail Prisoner Meal Service Contract for one year with the Firm of Burger King of Homer, Alaska and Authorizing the City Manager to Execute the Appropriate Documents. City Manager. HPD. Fiscal Note: Acct. 100.5206.164 budgeted $17,000. Recommend adoption.

Memorandum from Chief of Police as backup.

E. Memorandum 01-32, from Mayor, Re: Steep Slope Task Force Appointments. Recommend Confirmation.

F. Memorandum 01-34, from City Clerk, Re: Request to cancel the first meeting in July. Recommend approval.

G. AGENDA ADDITION: Memorandum 01-35(S), from City Clerk, Re: Starr Bros. Big Top Tented Circus. Recommend approval.

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

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

Motion carried.

VISITORS

ANNOUNCEMENTS/ PRESENTATIONS/ BOROUGH REPORT/ COMMISSION REPORTS

PUBLIC HEARING(S)

A. Assessment Increase, from 25% property owner share to 50% property owner share for the following water and/or sewer improvement/assessment districts: East Road Sewer (portion), Forest Glen Water and Sewer, Harrington Heights Water and Sewer, Hillside Acres Water, Hillside Acres Sewer, Mariner Village/Thorn Subdivision Water and Sewer, Saltwater Drive Water and Sewer, Thompson Drive Sewer and W. Lakeshore Drive Water and Sewer Improvement/Assessment Districts.

Dale Bondurant, Hillside Acres Districts, stated that he has inherited two lots that are in his brother's name on Binocular Bluff, lots 9 and 10, block 1. He queried why he was included in Hillside Acres Districts and not in Saltwater Drive District. Mr. Bondurant inquired about lot line vacation and how that would affect assessments. ***

At the request of Mayor Cushing the City Clerk responded to the questions with the following:

The history of the two districts was relayed and that these two lots were included in the Hillside Acres Districts at a later date, after Saltwater Drive District was already set, as recommended by Public Works at that time.

A lot line vacation during the district formation would result in fewer lots to share the overall project costs. The property owners would be notified of the change and the process followed accordingly.

Mr. Bondurant assured Mayor Cushing that he understood the lot line vacation process. He urged the City to apply for and secure grants for an area wide sewer and water systems' upgrade. More people served means more grant opportunity and a greater grant success rate, according to Mr. Bondurant. He pointed out that people signed up for water and sewer at 25% property owner share and the 50% is high.

Mayor Cushing advised that there appears, at this time, to be more opposition than support for the 50%/50%.

Bill Marley, Saltwater Drive District, stated that he has long been a leader with the Saltwater Drive Local Improvement District and spoke highly in favor of the 50 % proposal. He commented on the possibility of obtaining grants and that this is just not going to happen due to the lack of availability of state funding. He voiced his understanding that the utility casings went in under the Sterling Highway at the time that the Baycrest Hill/Sterling Highway project was constructed. He voiced his appreciation for the City providing water and sewer at 50% and for coming up with this gracious program.

Maureen Malcolm, Thompson Drive District, relayed a concern from her husband, who is unable to attend. According to Mrs. Malcolm, her husband had been informed that in order to run the line up Thompson Drive the road would have to be 30 feet wide. She pointed out that this would cut a great deal into their property.

Mayor Cushing stated that he would have the Public Works Director get back to her.

Mrs. Malcolm inquired how the East Road properties are affected with the Thompson Drive District and that she does not understand why this district goes across the road. She relayed that it appears that much of Thompson Drive District property owners are in objection and wondered what their next step would be.***

Arn Johnson, Hillside Acres Districts, expressed objection to the assessments at 50%. He stated that he already has sewer and has a cistern for water. He pointed out that the City will charge the assessment and a monthly fee for the water and sewer usage. He stated that he has two lots, assessed at $56,000 and that he does not believe that would add that much value to his property. Mr. Johnson stated that the City's will benefit more then he ever will.

Beryl Myhill, Hillside Acres Districts, stated that she wanted to give a rebuttal to what Dr. Marley said about being in favor of the 50%/50%. She emphasized that she is on a fixed income and that there is no way in the world that she can pay 50% on any water and sewer. However, if the City wants to do this as a favor, that would be fine. She reiterated that she cannot afford this assessment and is against it.

Lillian Miller, Hillside Acres and Saltwater Drive Districts, voiced agreement with Beryl Myhill. She stated that the assessments are exorbitant and ridiculous. She asked the Council how they determined that the property owners would pay 50% and how that came to pass. Ms. Miller stated that she believes this violates the previous agreement for 25% assessments with the property owners. She inquired how to get her objection registered on the record. She inquired if each of the districts would be tallied separate or as a whole and how would the public know that this was done correctly. Ms. Miller asked if the public would have more opportunity for input on these projects.

Mayor Cushing responded that the assessment of 50% came from the Sewer and Water Standards Committee, which has been working on this matter for about a year and a half. He advised that each district will be tallied separate and that all of the objection/non objections forms are public. He emphasized that they do not want to railroad the public into something that they do not want and there would be more opportunity for input. He cited a typical example of the Fairview Avenue Road project wherein the property owners had input into the design of that road.

Debra L. Rehder, Hillside Acres and Saltwater Drive Districts, commented about the fact that they had requested their other lots be included, which was before the assessment increased to 50/50. She inquired if there is still an option of 25% property owner share. She stated that they are in favor of both the water and sewer; however, the 50% is really hitting them hard. She inquired if the district could be expanded.***

Councilmember Fenske elucidated the process and advised that the 25% is no longer an option.

Mayor Cushing stated that if these districts fail at 50/50 the Council would be hard pressed to not consider other options.

Councilmember Ladd noted, with confirmation from the City Clerk and Councilmember Fenske, that the end of the objection period is July 28th and that property owners can come back with a new district configuration and start the process over.

Dave Vanderbrink, Mariner Drive District, noted that his district is water and sewer and that he already has water on one lot. He inquired if there was a payment plan, to make payments over a period of time, adding that it is not noted in the paperwork. He also wondered if the other districts are voted down if they could get a little better deal. He emphasized that septic systems and sand mound septic systems are expensive. Although, he advised, that he hates to agree with the Council and that the assessment amount does make him squirm he does enthusiastically supports the assessment district.

Councilmember Kranich noted that the payment plan is stated on the letter to the property owners and that it is payable annually over a period of ten years.

Otto Kilcher, Harrington Heights District, relayed that he and his wife have some concerns regarding the assessment district they are in and that they would rather stay with the 25% and are willing to wait until their project can be done at that rate. He inquired if the road would be upgraded or improved as part of this project and if the water and sewer hookups/connections are additional over the assessments cost? He emphasized that the majority of the property owners are investors with two or three lots each and that the size of these lots are fairly small, valued at $29,000. He also commented about putting a $150,000 home on these small lots. He asked if this district doesn't go and a different one is formed will the property owners have to pay 75%? Mr. Kilcher suggested that those who want this district at 50% separate out and form their own district.

Mayor Cushing stated that there is no provision to upgrade the road, there may be some incidental road work and that the road will be at least status quo and probably a little better.

Roberta Paulino, Saltwater Drive District, reported that they went ahead and connected to the City water and sewer and paid 100%. She objected to the 50%, however, stated that they are in favor of the improvements because of the protection to ground water et cetera. She voiced her hope that they could somehow avoid paying the assessment, especially since they are already paying monthly sewer and water bills. She asked that they please not be punished.

Charlie Rehder, Hillside Acres and Saltwater Drive Districts, noted that the first time around they were begging the Council to add three more of their lots at the 25% property owner level. He emphasized that a deal is a deal. He voiced opposition to the 50/50 and reiterated that a deal is a deal and they had a deal at 25/75. He stated that the assessment does not pencil out for the Saltwater Drive property, much of which is bluff property and eroding.

Jackie Eisenberg, Saltwater Drive District, stated that she had not received the information, since it is probably going to her former husband. She stated that the $27,000 is way out of her budget and does not see how this would increase her property value when the lots are valued at $30,000.

Lillian Miller stated that the 25/75 split with the property owner share at 25% was a contract and payoff was 20 years. She wanted to know why this changed to 10 years.

City Clerk Calhoun, upon request of Mayor Cushing, stated that the change to 10 years was set by the Finance Department pursuant to funding mechanisms and that the 20 year payoff is a very old figure.

Arn Johnson inquired how the votes were tallied if you sent in one sheet.

City Clerk Calhoun and Councilmember Kranich advised that the property owner should note the legal descriptions of all the parcels being voted on, on that one form per district and that these would be tallied noting all the parcels per district.

Dale Bondurant voice disagreement with Bill Marley's comments and that the inability to obtain grants is a bunch of bologna. He advised that Senator Torgerson recently acquired state funding/grants for water supplies for fire stations in outer area.

Mayor Cushing briefly commented on the grant process that the City has gone through.

Mr. Bondurant questioned the manner in which the City applied for the grants, suggesting that it may not have been done properly.

Dave Vanderbrink questioned at what point the City is required to put in water and sewer. He inquired about EPA and DEC requirements and at what point that would kick in.

Mayor Cushing relayed his personal knowledge about the budgetary cuts to DEC and that they are repealing a bunch of regulations. He indicated that DEC's focus is on larger systems such as sewer systems over 500 gallons generation per day. He voiced his opinion that it should not be expected that DEC will step in at this time, however, DEC will do an inspection if there is a complaint filed.

Dave Vanderbrink inquired if DEC were going to wait on a break out of hepatitis. He inquired if "this" is a certainty for sometime in the future and that it is just not known when?.

Mayor Cushing affirmed and stated that the limited funding that the state does have is going to the bush communities where there are outbreaks of diseases.

***Throughout the public hearing, Councilmember Fenske interjected that there is and will be opportunity to redraw district lines.

Mayor Cushing called for a recess at 8:40 p.m., reconvening the meeting at 8:48 pm.

B. Ordinance 01-18, Of the City of Homer Amending Homer City Code Section 1.08.020, Enactment Procedures, to Provide for Additional Public Hearings and Postponement of Final Reading of City Ordinances. City Manager. (First Reading 05/14/01, Public Hearing 05/29/01, Second Reading 06/11/01).

B.1. Resolution 01-, Of the Homer City Council Amending the Council's Operating Manual, Agenda. City Clerk. Follows same schedule as Ordinance 01-18. No action requested until the Ordinance is adopted.

There was no public testimony.

C. Ordinance 01-19, Of the City Council of Homer, Alaska Appropriating $25,000.00 for the Insurance Deductible for the Damages to the LASH 4 Barge and Authorizing the City Manager to Execute the Appropriate Documents. City Manager.(First Reading 05/14/01, Public Hearing 05/29/01, Second Reading 05/29/01).

There was no public testimony.

D. Ordinance 01-20, Of the City of Homer Amending Homer City Code Chapter 8.08, Itinerant or Transient Merchant's License, and 8.11, Mobile Food Service. City Manager. HPD.(First Reading 05/14/01, Public Hearing 05/29/01, Second Reading 06/11/01).

There was no public testimony.

E. Ordinance 01-21, Of the City Council of Homer, Alaska Correcting the Account number in Ordinance 01-10, for the Transportation Plan/Study Update. City Manager. City Clerk. (First Reading 05/14/01, Public Hearing 05/29/01, Second Reading 05/29/01).

There was no public testimony.

ORDINANCE(S)

A. Ordinance 01-19, Of the City Council of Homer, Alaska Appropriating $25,000.00 for the Insurance Deductible for the Damages to the LASH 4 Barge and Authorizing the City Manager to Execute the Appropriate Documents. City Manager.(First Reading 05/14/01, Public Hearing 05/29/01, Second Reading 05/29/01). PAGE 253

FENSKE/MARQUARDT - MOVED FOR THE ADOPTION OF ORDINANCE 01-19 BY READING OF TITLE.

There was no discussion.

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

Motion carried.

B. Ordinance 01-21, Of the City Council of Homer, Alaska Correcting the Account number in Ordinance 01-10, for the Transportation Plan/Study Update. City Manager. City Clerk. (First Reading 05/14/01, Public Hearing 05/29/01, Second Reading 05/29/01).

FENSKE/MARQUARDT - MOVED FOR THE ADOPTION OF ORDINANCE 01-21 BY READING OF TITLE.

There was no discussion.

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

Motion carried.

CITY MANAGER'S REPORT

A. City Manager's Report (Commendation for USCG and Ice/Crane Time.)

B. Bid Report from City Clerk

Acting City Manager Robl reported on the commendation and on the Ice/Crane Time. The United States Coast Guard thanked the City of Homer and the Port/Harbor for their outstanding job during the pollution response and equipment deployment training.

COMMITTEE REPORT

A. Beach Policy Task Force, Synopsis of May 10, 2001.

Councilmember and Co Chair Cue advised that the next Beach Policy Task Force meeting is scheduled for June 12th at 7 p.m. in the Council Chambers. This meeting is to review input and finalize the recommendations to go to the City Council for the June 25th Regular Council Meeting.

She encouraged input and advised that the Draft Recommendations are available to the public. She reported that the Parks and Recreation Commission, Planning Commission and Port/Harbor Commission have all reviewed the recommendations at their regular meetings.

PENDING BUSINESS

A. Memorandum 01-33(A), from Fenske, Re: Strategic Planning Session. Date and time to be decided. Location will be Council Chambers.

Recommendation: Approve the strategic planning session to be held on __date__ at __time_ in the _ (as amended on May 14, 2001 the location is )Homer Council Chambers_.

Fiscal note: Rental for Meeting Place, if other than City Hall. Meals/snacks. 100.5206.100.

Main Motion is on the Floor as amended: FENSKE/CUE - MOVED THAT THE CITY COUNCIL APPROVE THE RECOMMENDATION OF THIS MEMORANDUM.

(FENSKE/CUE - MOVED TO AMEND MEMORANDUM 01-33 THE LAST LINE TO AMEND THE LOCATION TO BE THE HOMER COUNCIL CHAMBERS AND TO ADD THE DATE AND TIME TO BE SET AT THE MAY 29TH MEETING. - primary amendment 1. passed.)

FENSKE/MARQUARDT - MOVED TO FURTHER AMEND TO SET THE DATE AND TIME, DISCUSSED IN THE COMMITTEE OF THE WHOLE, SUNDAY THE 24TH DAY OF JUNE AT 9 A.M. FOR THAT MEETING TO BEGIN.

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

Councilmember Fenske stated that the Committee of the Whole discussed conducting a second meeting/planning session due to the busyness of the summer time season that will probably be set for sometime in August.

Motion carried.

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

Motion carried.

NEW BUSINESS

RESOLUTIONS

A. Resolution 01-32, Of the City Council of Homer, Alaska Communicating to the Alaska Redistricting Board that the City of Homer, Along with Neighboring Kachemak Bay and Lower Cook Inlet Communities, Remain in the Same Election District. Mayor. Kranich. Ladd.

LADD/KRANICH - MOVED THAT RESOLUTION 01-32 BE ADOPTED AS BY READING OF TITLE ONLY.

There was no discussion.

LADD/KRANICH - MOVED AN AMENDMENT TO 01-32 ON THE FIFTH WHEREAS, LINE 30, "NIKISKI IN WHICH LITTLE IS HELD IN COMMON" CHANGE TO ALIGN WITH NORTHERN KENAI PENINSULA.

Amendment: The fifth whereas clause: WHEREAS, under the Redistricting Board Plan it is proposed that community members living directly to the east of the Homer City limits are redistricted and detached from House District Seven and inappropriately aligned with Nikiski in which little is held in common the Northern Kenai Peninsula; and

There was no discussion.

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

Motion carried.

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

Motion carried.

COMMENTS OF THE AUDIENCE

There were no audience comments.

COMMENTS OF THE CITY ATTORNEY

City Attorney Tans was not present.

COMMENTS OF THE CITY CLERK

City Clerk Calhoun had no comments.

COMMENTS OF THE CITY MANAGER

Acting City Manager Robl had no comments.

COMMENTS OF THE MAYOR

Mayor Cushing voiced his satisfaction with the good public input period on the water and sewer assessment districts. He reported on the three meetings with the Kenai Peninsula Borough Reapportionment Committee. He advised that he will not be able to make this Thursday's meeting, that he has given the notes to the City Clerk and the Manager's Office and that Councilmember Fenske may be able to attend the Thursday meeting. He noted that there are, very rough, maps depicting the assembly scenarios from 7 to 13 member assemblies. He stated that the maps have been computer generated purely on a population basis. The committee, "on the road show", will be in Homer the second week in June. Mayor Cushing voiced his hope that by the middle of June the maps would have clearly defined boundaries with a couple of assembly scenarios.

COMMENTS OF THE CITY COUNCIL

Councilmembers Cue, Yourkowksi, Marquardt and Fenske had no comments.

Councilmember Ladd stated that he likes Resolution 01-32(A), redistricting, and that it proposes to the Redistricting Board that the Kenai Peninsula represented area that Homer is in right now, remains in tact, which is positive for the community of Homer.

Councilmember Kranich voiced agreement with the Mayor that there was a good information exchange with the public on the water and sewer LIDs and noted that some of their questions were answered. He requested that the Ocean Drive Loop Bluff Erosion Control District be placed on the next meeting agenda. He stated that more and more bluff is being lost, nothing keeps happening with the Ocean Drive Loop Bluff Erosion Control District and administration does not bring anything forward. He emphasized that if the administration has nothing to present then there will be nothing in the packet.

ADJOURNMENT

There being no further business to come before the Council the meeting was adjourned at 9:07 p.m. The next regular meeting is scheduled for June 11, 2001 at 7:30 p.m. with a Committee of the Whole meeting at 4 p.m. on June 11, 2001. These meetings will be held in the Homer City Hall Council Chambers.

_____________________________________

MARY L. CALHOUN, CMC, CITY CLERK

APPROVED: _________________________