Session 05-32, a Regular Meeting of the Homer City Council was called to order at 7:00 p.m. by Mayor James C. Hornaday at the Homer City Hall Cowles Council Chambers located at 491 E Pioneer Avenue, Homer, Alaska, and opened with the Pledge of Allegiance.

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

STAFF: CITY CLERK CALHOUN

CITY MANAGER WREDE

ACTING FINANCE DIRECTOR VAUGHN

PORT AND HARBOR DIRECTOR DEAN

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 5:08 p.m. Regarding the Regular Agenda items, time was mostly spent on the Budget. Homer City Hall Cowles Council Chambers.

Council conducted a Special Meeting from 5:30 p.m. to 6:24 p.m. For the purpose of conducting Executive Sessions on Ocean Drive Loop Bluff Erosion Control Project Litigation, aka, Seawall and the Hurlen Claim - Pioneer Dock Project. Homer City Hall Cowles Council Chambers.

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 notations: Revised KESA Agreement for Resolution 05-75, Delete Resolutions 05-114 and 05-116 Consent Agenda Items L and N., Place Subject of Resolution 05-116 under New Business as Item B. Additional backup for Resolution 05-117, Add as Item C. Councilmember Wythe AML Conference Notes, Written Public Testimony submitted for Ordinance 05-58(S)(A), Mayor and Council Salary Survey for Ordinance 05-58(S)(A), and Revised Budget sheets with Special Budget Amendment Sheets for Mayor and Council.

PUBLIC COMMENTS UPON MATTERS ALREADY ON THE AGENDA

Public comments upon matters already on the agenda except Visitors, Homer Soft Ball Association, Re: Jack Gist Park. and Public Hearing Matters: Ordinance 05-14(A)(S), Permanent Fund;Ordinance 05-17, Amending Appeals; Ordinance 05-39 and Substitute, Underground Utilities Required; Ordinance 05-55, Reaffirming Acceptance and Designated Use of Certain Tax-Foreclosed Property; Ordinance 05-56(S), Accepting and Appropriating ADEC Matching Grant;

Ordinance 05-57, Accepting and Appropriating a Reimbursement Grant ADOT/PF; Ordinance 05-58(S)(A), Amending Salaries of Elected Officials; and the Budget.

Larry Slone addressed the Council regarding Resolution 05-112, three year contract with City Manager Walt Wrede. He commended the City Manager for his performance, professionalism, knowledge, productivity, communication skills and congenial personality.

Bryan Zak, from Zak's Reality, commented on Resolution 05-116 wetlands that was changed to New Business as Item B. He expressed to the Council that as the City of Homer, his main concern is that Councilmembers consider the City and the impact that this has on the City. He said that he kind of laughs thinking that this has come back full circle now for the problems with the City limits and people not wanting to be a part of the City. Now this thing is coming down through the Borough, on the Borough website, the green wetlands map. He urged caution that the City not allow this to impact the City, because of the tax consequences for the school. He voiced his opinion that the Federal government should help the City with the plan, rather than just have something that all of a sudden just appears on a maps with some green just about everywhere and also included in the City. He expressed assurance that the Council is going to do a good job on this issue and that there will be a lot of talking about it. He emphasized that now is the time to stand up a say, "Wow, now I actually live inside the city limits." He stated that now at one point it is probably going to help me, adding that a lot of times people worry about paying more taxes in the City, but look forward to what the City does about this. He thanked the Council.

Alan Parks, Outreach Coordinator for Alaska Marine Conservation Council, greeted the Mayor and Council and emphasized the importance OF the issues addressed by Resolution 05-117, which in part deals with the Berring Sea and Aleutian Island Crab Rationalization Program. He thanked Councilmember Shadle for submitting the Resolution. He reported on impacts to the fleet, rumored loss of around 900 related jobs, many based in Homer, and other adverse effects of the program to the fishermen that have and are participating. He reported that there are a lot of "docks being moth balled", there is a 90 day biological season in place by Alaska Fish and Game, the processors involved are wanting the crab delivered within 45 days, which pushes the fishermen who are still fishing bad weather. He voiced concerns that this does not appear to be addressing safety or slow paced fishery. There are reports of hydrating on the fishing grounds, where only the premium crabs are taken and the rest tossed overboard thus increasing crab mortality by crab handling. He emphasized that these are conservation issues. The resolution urges a thorough analysis be done of existing share based programs in Alaska and the impacts to the coastal communities, fishermen and resource. Management of fisheries and present policy needs to be understood and how present policy will effect future policy. He urged the Council to pass this Resolution. He noted the Council's consistency in support for conservation, for independent fishermen and understanding what is going on.

RECONSIDERATION

None scheduled.

CONSENT AGENDA

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

Councilmember McLay requested that Resolution 05-120 be placed under Resolutions as Item A. and that Memorandum 05-174 be placed under New Business as Item C.

Councilmember Wythe requested that Resolutions 05-113 and 05-117 be placed under Resolutions as items B. and C.

Councilmember Stark requested that Resolution 05-112 be placed under Resolutions as Item D.

City Manager Wrede requested that Resolution 05-75 be pulled from the Consent Agenda. The Mayor found no objection from the Council and placed this under Resolutions as item E.

A. Homer City Council unapproved meeting minutes of October 24, 2005 Special and Regular Meeting. City Clerk. Recommend approval.

B. Ordinance 05-59, Of the City Council Authorizing the Expenditure of Homer Accelerated Road Program (HARP) Funds for the W. Noview Road Reconstruction and Paving Assessment District Project. City Clerk. Fiscal Note: Funding Source. HARP $400.000.00, Project No. 160-766 Expenditure: HARP W. Noview Road Reconstruction and Paving $400.000.00 to be combined with Spruceview Road Reconstruction and Paving Project. Recommend Introduction and First Reading, schedule and conduct Public Hearing and Second Reading November 28, 2005.

C. Ordinance 05-60,Of the City Council of Homer, Alaska, Amending Homer City Code Section 1.24.050, Filling a Vacancy, Referring to Council. Heimbuch. Recommend Introduction and First Reading, schedule and conduct Public Hearing and Second Reading November 28, 2005.

D. Ordinance 05-61, Of the City Council of Homer, Alaska Amending the Account Numbers as Adopted by Council in Ordinance 05-31 for Revenue and Expenditure from 151-784 to 151-864. City Manager. Recommend Introduction and First Reading, schedule and conduct Public Hearing and Second Reading November 28, 2005.

E. Ordinance 05-63, Of the City Council of Homer, Alaska Amending Homer City Code Sub Section 21.42.030(a), under Zoning Permit Issuance and Denial to Eliminate Corps of Engineers Permits as a Condition for Issuing a Zoning Permit. Heimbuch. Recommend Introduction and First Reading, send to Planning Commission for Hearing and Review, schedule and conduct Council Public Hearing November 28, 2005 and Second Reading on December 12, 2005.

F. Resolution 05-75,Of the Homer City Council Authorizing the City Manager to Enter into an Agreement with the Kenai Peninsula Borough to Provide Fire and Emergency Medical Services to Kachemak Emergency Service Area for FY 2006 and July 1 to December 31, 2006 in the amount of $283,955.00. City Manager. Fiscal Note: Revenue of $283,955.00, Acct. 100.4602.035.Recommend adoption.

New Revised Agreement.

Placed under Resolutions as item E.

G. Resolution 05-108, Of the City Council of Homer, Alaska Awarding the Contract for the Video Security System for the Homer Airport to Puffin Electric of Homer, Alaska in the Amount of $34,152.00, and Authorizing the City Manager to Execute the Appropriate Documents. City Clerk. Fiscal Note: Ordinance 05-31 Revenue and Expenditure Account 151.784.Recommend adoption.

Memorandum 05-168, from Chief of Police as backup.

H. Resolution 05-110, Of the City Council of Homer, Alaska Amending the Homer Port Harbor Advisory Commission Bylaws, to Change their Regular Meeting time from 7 p.m. to 6 p.m. City Clerk. Recommend adoption.

I. Resolution 05-111, Of the Homer City Council Expressing Its Strong Support for the Homer Deep Water Dock Construction Phase II Project and Its Intent to Place a Bond Proposing on the October 2006 Regular Election Ballot in the Amount of Two Million Dollars in Order to Provide for a Local Match to State and Federal Funding. Mayor. City Manager. Fiscal Note: Two Million in Bond Payments plus interest over 20 or 30 years. Recommending adoption.

J. Resolution 05-112, Of the City Council Approving a Three Year Contract with Walt E. Wrede as City Manager. Mayor/Council. Fiscal Note: 100.5101.110 City Manager Salary. Salary increase is $4,000.00. Recommend adoption.

Placed under Resolutions as item D.

K. Resolution 05-113, Of the Homer City Council Establishing a Formal Process for Identifying and Addressing Community Planning Issues and Concerns that have been Raised by the Council, the Advisory Planning Commission. the City Administration and the Public. Heimbuch. City Manager. Recommend adoption.

Placed under Resolutions as item B.

L. Deleted under agenda approval. Resolution 05-114, Support for Town Center, CIRI and Fred Meyer Project. Heimbuch. No resolution submitted.

Deleted.

M. Resolution 05-115, Of the City Council of the City of Homer Noting the Insufficiency of the Petition for Kachemak Drive Phase III Water and Sewer Improvements. City Clerk. Recommend adoption.

N. Deleted under agenda approval. Resolution 05-116, Of the City Council of the City of Homer, Alaska, on Partial Acceptance of Wetlands Study, Contract with Conditions for Full Acceptance and Implementation. Stark. McLay. Shadle. No resolution submitted.

Deleted and subject placed under New Business for discussion purposes.

O. Resolution 05-117, Of the City Council of Homer, Alaska Supporting Independent Fishermen and Urging that a Thorough Analysis of the Social and Economic Impacts of Excising Share-Based Programs in Alaska Must Occur Prior to Further Use in Alaska Especially Processor Quota. Shadle. Recommend adoption.

Placed under Resolutions as C.

P. Resolution 05-118, Of the Homer City Council Establishing the Extension of Heath Street as a Top Priority and Directing the City Manager to Develop a Strategy for its Construction. City Manager. Fiscal Note: Staff Time. Recommend adoption.

Q. Resolution 05-120, Of the City Council of Homer, Alaska That Any Vote Affecting Mayoral or City Council Compensation Will Be Done by a Vote of the People During a General Election. Novak. Recommend adoption.

Placed under Resolutions as Item A.

R. Memorandum 05-172, from Mayor, Re: Reappointment of Deborah Poore to the Homer Parks and Recreation Advisory Commission and Reappointment of Carla Stanley as Homer's Representative on the Cook Inlet Regional Citizen's Advisory Council. Recommend confirmation.

S. Memorandum 05-173, through City Manager, Re: Support of Alaska Association of Harbormasters and Port Administrators Resolution 2005-01, A Resolution of the Alaska Association of Harbormasters and Port Administrators for the Legislature to Provide Matching Maintenance and Repair Funds to Local Government owned Harbors. Recommend support.

T. Memorandum 05-174, from Councilmember McLay, Re: Financial Support for the Homer Chamber of Commerce Winter Carnival. Recommend allocation in 2006 Budget.

Placed under New Business as Item C.

WYTHE/HEIMBUCH - MOVED FOR THE ADOPTION AND/OR APPROVAL OF THE RECOMMENDATIONS OF THE CONSENT AGENDA, AS AMENDED AND AS READ.

There was no discussion.

VOTE:(Excluding items F., J., K., L., N., Q., and T.) YES: NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

VISITORS

A. Homer Soft Ball Association, Re: Jack Gist Park.

Rich Kleinleder, Member of the Homer Soft Ball Association and President of the Jack Gist Park Association, gave a presentation and handed out some brochures.

• •Association Organized about 8 years ago.

• •Purpose to develop a multi use facility at Jack Gist Park located down Adams Street, just East of Rochele.

• •Requested support in CIP document for finishing the parking area, need more gravel and more drainage work.

• •The Association is a 501(C)(3) group.

• •Mission to assist in development of this park.

• •East End Road Development facilitated the development of the Access Road, Adams Street.

• •There is a beautiful access road, most of the rough dirt work is done, fields have been hydro seeded.

• •More grounds work will be done once grass is established.

• •Association will provide the labor to build the fields - fencing, dugouts, etc.

• •1988 Land, Water, Conservation Grant contributing partner with City and ADOT

• •Site visit encouraged.

• •Will be the best facility for Softball Tournaments in the state.

• •Association working on fund raising for things such as concession stands, field watering, maintenance and etcetera.

• •Plan on partnering with the City for years to come.

• •Association ultimate goal to have more land to build other facilities.

• •Multi uses

• •Grateful for City support and commendation to Public Works Director Meyer.

• •Future signage.

Mayor Hornaday mentioned getting the drainage done at the Little League fields at Karen Hornaday Hillside City Park.

ANNOUNCEMENTS/PRESENTATIONS/BOROUGH REPORT/COMMISSION REPORTS

Representative Seaton addressed the Council regarding PERS/TERS, he provided financial impact charts:

• •Looks out for those things that greatly impact the City.

• •In the future probably will not include unfunded pension and/or medical liabilities that the City takes on. Such as elected officials.

• •Estimated City Liabilities elected officials compared to regular employees.

• •According to Seaton: 22 years retirement entry level janitor total liability for medical over life span for retiree is $368,545.00 and City Council same liability is $368,545.00.

• •According to Seaton: 22 years retirement entry level janitor total liability for retiree is $339,588.00 and City Council same liability is $434,545.00.

• •Includes assumptions, COLA not included, automatic COLA not included.

• •Minimum pension is $3,000.00, City Liability $3,000.00

A. Mayor's Travel Report.

B. Parks and Recreation Commission Report

C. Councilmember Wythe AML Conference Notes.

PUBLIC HEARING(S)

A. Ordinance 05-14(A)(S), Of the City Council of the City of Homer, Alaska, Amending Homer City Code, to add a new Chapter 3.12, To Establish and Govern a Permanent Fund, and Amending Homer City Code Chapter 3.10, Investment and Collateralization of Public Funds to Add a New Section, 3.10.130 Relating to the Permanent Funds. Permanent Fund Committee with City Attorney revision. (Public Hearing November 14, 2005.)

Ken Castner, resides at 196 Mt View Drive and Chair of the Board of Trustees for the Homer Foundation, greeted the Mayor, Council, City Manager and City Clerk and gave some history to his appointment to the Permanent Fund Committee. He voiced his opinion that his purpose on the Committee was to bring some information concerning long term investments and endowments and strategies to create permanence and to explain how funds can be built that would spin off earnings that could be used for other things. He stated that he thinks it was someone else's job to make a pitch for the non profits and sharing this windfall amongst a wide range of recipients in the town. He stated that the way this Ordinance got drafted changed how this mechanism would work, when a windfall came in the sharing allocation would happen at that point and if the City had a bond fund and equity fund those would be managed discreetly. If the non profits had a fund in or out of the Homer Foundation or within existing endowments or whatever, that would be their problem. The Committee was never looking for some sort of annual reallocation of funds of fiddling with formulas to do that. He voiced support of having the simplest sort of a plan and using this windfall to settle some old issues such as allocation to non profits or the quasi acceptable functions of the City, such as the Softball Association and the new softball field. This year there is a new softball field, a new Animal Shelter, a new Library and a new Hockey Rink all fairly large facilities needing some sort of support to be successful. All are looking to the City to provide the leadership and cooperation to allow them to succeed. He encouraged the Council to look at the Committee recommendations and at the way in which the Attorney developed the Ordinance.

Mayor Hornaday thanked the members of the Permanent Fund Committee and noted that Councilmembers Wythe and Novak's participation.

Larry Slone, City resident, testified that he is not so sure that this is a wise idea, adding that he does not pretend to be very knowledgeable in municipal finances and that he understands that there are some magical things that can be done with a Permanent Fund in the form of self bonding activities. He noted with the City is facing a short fall of $6 million in PERS, paying 8% interest and that it seems that the best thing to do is to pay off debts or other obligations of the City and rather foolish not to. The Permanent Fund is a special fund and the corpus can be used by a 60% vote of the populace for capital projects, not a typical project, requiring some sort of grandiose project, that can cost $100 million, such as the coal plant in Healy and other special projects by the State related to farms, animals, milk production and etcetera and all have been abject failures. He said that he foresees, in the future, that some smooth talking devil coming down the road and convincing the people of Homer to get involved in some grandiose project such as a bridge across Kachemak Bay to McDonald Spit, something totally inane and ridiculous.

Leonard Wells, City resident, testified that he is, generally, in favor of this proposal and that he prefers more permanence and not touchable by any future Council by directing to some non City management group with funds generated reverting back to the General Fund. Even as written it is a good idea and would be a good use of the funds. Quoting Councilmember Wythe, he said that if these funds are not set up and set aside, when a windfall does occur the first Council will spend the money.

B. Ordinance 05-17, Of the City Council Amending Homer City Code Chapter 21.68, Concerning Appeals Under the Homer Zoning Code and Enacting Section 21.30.030 to Authorize Setting Zoning Fees by Resolution. City Manager. (First Reading October 10, 2005 and forwarded to the Planning Commission for Review and Public Hearing, Public Hearing November 14, 2005, Second Reading November 28, 2005.)

Frank Griswold, City resident, stated that on page 321 of the packet in the City Manager's report it says that Bill Smith submitted written comments which are attached to the report, but these were not attached and this does not mentioned the 15 pages that he, Mr. Griswold submitted, nor does it mention the public comments from the first meeting. He stated that it would be good to have these included for the next time. He stated that non of the whereas clauses that support this Ordinance reflect the true reason behind it, and that if the true purpose cannot be stated that it probably is not a real good idea. He urged the Council to get an independent legal opinion. Continuing he commented:

• •It has been suggested that this Ordinance is in line with appeal procedures for neighboring cities and that he did not find that to be the case.

• •No one has ever been denied standing to appeal a zoning determination in the cities of Anchorage, Seward, Kenai or Soldotna.

• •Anchorage - any person adversely affected may appeal.

• •Soldotna - any person with interest in real property which is affected may appeal.

• •Seward - any person or persons aggrieved by an action or determination taken under this chapter may appeal said action or determination.

• •Only in Anchorage and Soldotna are filing fees charged. In Anchorage it is refunded in full if there is a reversal in whole and if a partial reversal half is returned.

• •None of the cities require an applicant or appellant to attend the proceedings, prove standing or otherwise jump through hoops.

• •City Attorney claims there is confusion as to who has standing to file an appeal. Mr. Griswold stated that it is the City Attorney who causes the confusion.

• •Any citizen of Homer who is adversely affected by a zoning decision should continue to have the right to appeal.

• •Ordinance is heavily weighted in favor of the applicant. Example: One can appeal the denial of a zoning permit or sign permit, but the approval cannot be appealed. This is manifestly unfair and biased.

• •Applicants are more likely to be at the meeting. If one does not attend a meeting their right to appeal is gone. Takes out the provision that anyone within 300 feet automatically has the right to appeal.

• •Conflicts with AS 29.40.050(a). (Mr. Griswold made no explanation)

• •Discriminates against renters or leasers. Since one would have to own the property to have standing.

• •If the whole community is adversely affected, but all affected the same, no one can appeal. This makes no sense at all. Examples: What if the issue is repealing the Nuclear Free Zone? or involves something that could contaminate the City water supply?

• •In addition to interest injury standing the Alaska courts recognize tax payer citizen standing and broadly interpret its application. Under tax payer citizen standing one has the right to appeal a zoning matter if the matter is one of public significance and if the person is an appropriate party to raise the issue.

• •The Earth Mover case cited by the City Attorney has been misapplied. This case only established that one cannot challenge a zoning determination if the sole objective is to eliminate business competition.

• •Contrary to the whereas clauses this Ordinance has nothing to do with preserving the free enterprise system and is solely designed to stop members of the public from filing appeals.

Bill Smith, just another citizen, stated that he did testify before the Planning Commission, last week, that he submitted a few pages of comments that he will not reiterate and voiced his hope that the Council will get copies before they make a final determination. He stated that, basically, his recommendation in those comments points out specific things that he thinks are wrong with the Ordinance amendment and makes specific recommendations about how he thinks it should go. Mr. Smith stated that the larger issue is the philosophic ones, how should the community treat this issue, should the citizens be able to appeal and under what conditions. He told the Council that he thinks that they should send this back to the Administration and the City Attorney and have them change the Ordinance to reflect a different philosophy. He said that he thinks that what is proposed does not really reflect the values of the community.

Bob Shavelson, here as a resident of the City of Homer and also as the Executive Director of Cook Inlet Keeper non profit organization with roughly 500 members in the Cook Inlet watershed, testified that this is an issue of significance, because the right of citizens to seek redress from their government is basic and fundamental to the constitution. He voiced his thinking that this is quashing that right through an Ordinance like this one. He commented on his previous case that involved a zoning permit on Bishop's Beach that he, as a citizen of the City, is an owner of the public lands, waters, and the tidelands of this area and that he felt those tidelands would be adversely affected gy the development. He stated that he was able to show that to the Planning Commission and City Council sitting as Board of Adjustment and that both agreed with his standing in that matter. He stated that now the City Attorney is drafting an Ordinance that would quash those rights. He continued:

• •This is a long standing matter that if the government cannot or will not enforce the law that a citizen has the right to stand and appeal if affected.

• •This Ordinance is unduly restrictive and puts the government above the people.

• •Discriminates between property owners, as Mr. Griswold stated, and those that simply rent, for example. Mr. Shavelson voiced his opinion that this is a fatal flaw.

• •Bad public policy.

• •Bad legal advise. He stated that when he sees a lawyer citing a foot note in a case it means the lawyer has no argument. He commented that this bothers him, because he thinks this was facetiously put out and mis represented. According to Mr. Shavelson the Earth Mover case is about business competition and not about the effect or harm to an individual citizen and their interests in a general sense.

• •The Alaska Supreme Court has liberally construed the notion of standing, the right interpretation, and nationally so.

• •Opens the City to litigation, because it is discriminatory and does not treat similarly situated individuals similarly.

• •This stomps on a citizen's right to seek redress from their government. The same type of disenfranchisement seen in the annexation debate. This will only fan those flames.

• •Do not want to promote larger government at the expense of citizens. This can be resolved by embracing the notion of adversely, affected or aggrieved as a conditional for appealing a zoning decision in this town.

Mr. Shavelson thanked the Council.

C. Ordinance 05-39, Of the Homer City Council Amending Homer City Code Title 13 by Adding a New Chapter 13.50 Entitled "Underground Utilities Required". City Manager. Fiscal Note: All City obligations under this ordinance must be budgeted under separate ordinances.(First Reading October 24, 2005, Public Hearing November 14, 2005, Second Reading November 28, 2005.)

C.1. Ordinance 05-39(S), Of the Homer City Council Amending Homer City Code Title 13 by Adding a New Chapter 13.50 Entitled "Underground Utilities Required". City Manager. City Attorney revisions. Fiscal Note: All City obligations under this ordinance must be budgeted under separate ordinances. (Public Hearing November 14, 2005, Second Reading November 28, 2005.)

There was no public testimony.

D. Ordinance 05-55, Of the City Council of the City of Homer, Alaska Reaffirming Acceptance and Designated Use of Certain Tax-Foreclosed Property, Kenai Peninsula Borough Tax Parcel ID Numbers 177-174-2200 and 177-270-4900. City Clerk. (First Reading October 24, 2005, Public Hearing and Second Reading November 14, 2005.)

There was no public testimony.

NOVAK/WYTHE - MOVED TO ADOPT ORDINANCE 05-55 BY READING OF TITLE

Councilmember Wythe inquired if this was foreclosed property was acquired prior to the new code section about foreclosed property.

City Manager Wrede affirmed.

VOTE: YES: NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

E. Ordinance 05-56(S), Of the City Council of Homer, Alaska Accepting and Appropriating an Alaska Department of Environmental Conservation (ADEC) Matching Grant in an Amount not to Exceed $336,000.00 for the Preliminary Design of Water Treatment Plant Upgrades including an Evaluation of the Existing Water Source, Authorizing and Appropriating the City Match of $144,000.00 from Homer Accelerated Water and Sewer Program (HAWSP) Funds and Authorizing the City Manager to Execute the Appropriate Documents. City Manager. Fiscal Note: Revenue and Expenditure Account 215-865. City Match from the HAWSP. (First Reading October 24, 2005, Public Hearing and Second Reading November 14, 2005.)

There was no public testimony.

McLAY/SHADLE - MOVED FOR ADOPTION OF ORDINANCE 05-56(S) BY READING OF TITLE.

There was no discussion.

VOTE: YES: NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

F. Ordinance 05-57, Of the City Council of Homer, Alaska Accepting and Appropriating a Reimbursement Grant from the ADOT/PF Alaska Highway Safety Office, in an Amount not to Exceed $10,725.00, for Holiday DUI Enforcement and Authorizing the City Manager to Execute the Appropriate Documents. City Manager. Fiscal Note: Revenue Account and Expenditure Account No. 151-781, ADOT Alaska Highway Safety Office $10,725.00 Holiday DUI Enforcement Grant to Police Small Grants. (First Reading October 24, 2005, Public Hearing and Second Reading November 14, 2005.)

There was no public testimony.

HEIMBUCH/NOVAK - SO MOVED. (For the adoption of Ordinance 05-57 by reading of title only for second and final reading.)

There was no discussion.

VOTE: YES: NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

G. Ordinance 05-58(S)(A), Of the Homer City Council Amending Homer City Code Section 1.24.040, By-Laws for Council Procedure(m) Salaries of Elected Officials, [ to Raise the Expense Allowance and] to Prohibit Membership in the Public Employees Retirement System (PERS) for Elected Officials. Stark. Fiscal Note: $150 budgeted (First Reading October 24, 2005, Public Hearing and Second Reading November 14, 2005.)

George Meeker, resident living in Homer, read a letter into the record points of which are:

• •Thanking people of Homer that elected the Council.

• •Thanked Council for offering their time to help improve the town at considerable personal sacrifice.

• •Short and long term fiscal policy.

• •Council jobs are tough and time consuming.

• •Council are examples of why the community works and that they serve for the satisfaction of seeing the community improve and prosper. Compensation does not make it better nor is it reason to run for office. He stated that he believes the Council should receive a modest allowance and save their own money for retirement.

• •Eliminating participation in PERS has much merit. $6 million under funded pension plan for City employees. Only way to stop this cancer is to start at the grass roots.

• •Government retirement systems need control to prevent bankruptcy. City, State, Federal, business, and corporation employee pensions and medical benefits will be in jeopardy. Cited example of the government bailing out Chrysler. Airlines, Enron and others going bankruptcy and affecting employees.

• •Employees need to provide more money to be assured a retirement.

• •Homer does not have the luxury of the Federal Government, no printing press.

• •Only way to have any form of guaranteed pensions for City employees is through continuous increased charges for services, increased sales tax or increased property tax.

Mr. Meeker encouraged the Council to adopt Ordinance 05-58 as a forward looking solution to an ever increasing cost cancer on residents and tax payers in Homer.

Larry Slone concurred with Mr. Meeker's comments and those of Representative Seaton who spelled out the incredible costs associated with PERS. He agreed with this opportunity to allow the City the opportunity to opt out and at the same time allow for a small stipend. He stated that no one questions the amount of time and effort involved in Council's job. He reiterated his comments from the last Council meeting that the Council is not alone and that there are many others out there providing an equal amount of commitment, time and effort and including the various Commissions and Task Forces and other assorted organizations. He pointed out that all of these volunteers, in his opinion, make Council's work load much lighter and without them the Council would not be able to accomplish what needs to be done. He voiced his opinion that this policy ought to be applied across the board to not discriminate against the volunteers.

STARK/WYTHE - MAKE THE MOTION TO ADOPT ORDINANCE 05-58(S)(A) BY READING OF TITLE.

There was no discussion.

HEIMBUCH/SHADLE - MOVED TO AMEND THAT THE COUNCILMEMBERS WILL RECEIVE $150.00 PER MONTH DURING THEIR TERM OF OFFICE AS A REIMBURSEMENT FOR EXPENSES.

There was no discussion.

STARK/HEIMBUCH - MOVED TO AMEND TO INCLUDE THE MAYOR AT $200 PER MONTH.

Discussion included: Reiteration of Representative Seaton's comments, that raising the expense allowance is a guaranteed increase of the cost to the City of $100.00 a month for the life of the plan, that is $1,200.00 per Councilmember per year for all eternity and indexing as it goes along at the whim of the Council. The history of Councilmembers getting PERS, seven one of whom had prior service and came into the Council PERS fully vested in the plan. The problem with PERS is not the unfunded pension issue it is the unfunded health issue. Anyone who is not currently sitting at this table today will not be eligible for the pension retiree health insurance benefits that exist right now today, since Tier IV eliminates the pension benefit. Resolution 05-120 was noted that this requires a vote of the people for the Council to receive pay. The salary survey was mentioned and that the $150 is below every muni except Wasilla. Based on the figures from Representative Seaton one school janitor would be equal to 30 years of Council service, a good deal.

Councilmember McLay objected to bringing into the discussion Resolution 05-120.

Mayor Hornaday allowed discussion on Resolution 05-120 as it pertains to compensation.

Discussion ensued:

It was pointed out that this is a reimbursement for expenses Council incurs while serving on the Council, such as for those Councilmembers in private business/self employed, when citizens drop by to chat about Council/City business and the impacts thereof. Actual costs to the City were discussed.

VOTE: (secondary amendment to primary amendment 1.) YES: HEIMBUCH, McLAY, WYTHE, SHADLE, STARK.

NO: NOVAK.

Motion carried.

Councilmember Shadle inquired about the compensation being optional and if it could be donated to an entity, such as Homer Hospice.

City Manager Wrede responded that to the best of his knowledge the Council may opt out, but the City cannot send Council's compensation somewhere else.

VOTE: (primary amendment as amended) YES: McLAY, SHADLE, STARK, HEIMBUCH.

NO: WYTHE, NOVAK.

Motion carried.

There was no discussion.

STARK/HEIMBUCH - MOVED TO AMEND TO DELETE THE SECOND WHEREAS CLAUSE

WHEREAS, CITY ATTORNEY HAS STATED THAT A RAISE IN THE EXPENSE ALLOWANCE CAN ONLY BE EFFECTIVE FOR NEWLY ELECTED OFFICIALS TO AVOID A CONFLICT OF INTEREST WHERE COUNCILMEMBERS RAISE THEIR OWN SALARIES; AND.

There was a brief comment regarding why this is not pertinent.

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

Motion carried.

Discussion ensued regarding costs and whether or not to participate in PERS.

McLAY/WYTHE - MOVED TO TABLE.

No discussion on a motion of this type.

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

NO: STARK, SHADLE.

Motion carried.

The Mayor called for a recess at 8:43 p.m., reconvening the meeting at 8:48 p.m.

H. 2006 Budget, includes Water, Sewer and Port Rates.

Memorandum 05-175, from Parks and Recreation Commission, Re: Parks and Recreation Budget Priorities.

There was no public testimony.

ORDINANCE(S)

A. Ordinance 05-14(A), Of the City Council of the City of Homer, Alaska Amending Homer City Code Chapter 3.05, Budget to Add a New Section 3.05.046, General Permanent Fund. Wythe. (First Reading May 24, 2005, Public Hearing on June 13, 2005, Second Reading June 27, 2005 amended and deferred/moved to July 25, 2005,Referred to Six-Month Committee. Main Motion is on the floor as amended and referred to Committee on July 25, 2005. Committee Recommendations for November 14, 2005 as seen in Substitute.)

A.1. Ordinance 05-14(A)(S), Of the City Council of the City of Homer, Alaska, Amending Homer City Code, to add a new Chapter 3.12, To Establish and Govern a Permanent Fund, and Amending Homer City Code Chapter 3.10, Investment and Collateralization of Public Funds to Add a New Section, 3.10.130 Relating to the Permanent Funds. Permanent Fund Committee with City Attorney revision. (Public Hearing November 14, 2005 Committee recommends Council adopt this Ordinance.)

Main Motion as amended is back on the floor: WYTHE/YOURKOWSKI - MOVED FOR THE ADOPTION OF ORDINANCE 05-14(A) BY READING OF TITLE ONLY FOR SECOND AND FINAL READING. Amendment: YOURKOWSKI/NOVAK - MOVED TO AMEND ORDINANCE 04-14(A) BY ADDING A SECTION THREE THAT THE HOMER CITY COUNCIL CREATE A COMMITTEE OF SEVEN APPOINTED BY THE MAYOR TO GAIN COMMUNITY INPUT TO ADDRESS ISSUES SUCH AS THE PURPOSE OF THE FUND, THE PERMANENCE OF THE FUND AND THE ADMINISTRATION OF THE FUND AND TO RECOMMEND AMENDMENTS TO THIS ORDINANCE.

Committee recommends amendment to adopt Ordinance 05-14(A)(S).

WYTHE/NOVAK - MOVED TO POSTPONED ACCEPTANCE OF ORDINANCE 05-14(A) UNTIL THE DECEMBER12TH MEETING FOR FURTHER LEGAL CONSULTATION.

Councilmember Wythe will work with the attorney on revising the rewrite.

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

Motion carried.

B. Ordinance 05-62, Of the City Council of Homer, Appropriating Funds for the Calendar Year 2006 for the General Fund, the Water - Sewer fund, the Port/Harbor Fund, Debt Funds, and Capital Reserve Funds (Conditional Expenditures). City Manager. (First Reading November 14, 2005,Public Hearing November 28 and December 5, 2005, Second Reading December 12, 2005.)

WYTHE/NOVAK - MOVED FOR THE ADOPTION OF ORDINANCE 05-62 BY READING OF TITLE ONLY.

There was no discussion.

VOTE: YES: NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

Mayor Hornaday read the following into the record prior to voting on the motion.

General Fund $8,994,441.00, Water/Sewer Fund $2,833,470.00, Port/Harbor Fund $2,939,597.00,

Capital Projects $3,494,767.00, Internal Service Fund $1,412,223.00, Total Expenditures $19,674,498.00

The supporting line item budget detail as presented by the administration and reviewed by council is incorporated as part of this budget ordinance.

The property tax mill levy is set at 4.5 mills for 2006.

NO ACTION ON THE ATTACHED RESOLUTIONS AT THIS TIME.

B. 1. Resolution 05-121, Of the City Council of the City of Homer, Alaska Amending the City of Homer Fee Schedule Regarding the Water Rates. City Manager. Follows with Budget.

B. 2. Resolution 05-122, Of the City Council of the City of Homer, Alaska Amending the City of Homer Fee Schedule Regarding the Sewer Rates. City Manager. Follows with Budget.

B. 3. Resolution 05-123, Of the City Council of Homer, Alaska Revising Certain Portions of the Port and Harbor of Homer Terminal, Tariff No. 600. City Manager. Follows with Budget.

B. 4. Resolution 05-124, Of the City Council of Homer, Alaska Extending the City Attorney Contract with Perkins Coie for the Period of January 1, 2006 through December 31, 2006 in the amount of $7,650.00 per Month for Forty Five Hours and Authorizing the Mayor to Execute the Contract. City Attorney Contract. Mayor. Follows with Budget.

B.5. Resolution 05-125, Of the City Council Amending the City of Homer Fee Schedule Administrative and City Clerk Fees. City Clerk. Follows with Budget.

CITY MANAGER'S REPORT

A. City Manager's Report (Updates and Follow Up: 1.UA President Hamilton Visitor on December 12th and reception for Council between Committee of the Whole and Regular Meeting at the College facility next door to City Hall; 2. Ordinance 05-39 and substitute, Underground Utilities, still awaiting comments for ACS, GCI and HEA; 3. Ordinance 05-17, Appeals, two testifiers at the Planning Commission public hearing; 4. UA Board of Regents passed a Capital Budget of $1.5 million for the KPC Campus, $2 million of which to acquire and refurbish City Hall and money will be available July 1, 2006; 5. Planning Process for new City Hall should begins ASAP and perhaps an anchor for Town Center; Town Center Plan and Ordinance to incorporate into Comprehensive Plan; 6. Conference Center; 7. Alaska Eagle Watch Network and eagle feeding on the Spit; 8. KESA Contract and Resolution 05-75; 9. Planning/Worksession; 10. Heath Street Extension; Additional: November Employee Anniversaries - Jim Hobbs PWD 25 years, Ed Barcus PWD 22 years, Dave Bolt PWD 22 years, Glenn Satterfield PH 9 years; Dave Shealy HPD 8 years and Mike Rile PWD 5 years; Alaska Eagle Watch Network Letter, UA Capital Request; Oiled Regions of Alaska Foundation - Re: Exxon $100 million for mitigation; and Department of Fish and Game - Nick Dudiak Fishing Lagoon Hole Funding.)

Council concurred the following:

Alaska Eagle Watch Network to speak at next Committee of the Whole.

UA President Hamilton reception for the Council between the Committee of the Whole and the Regular Meeting on December 12th and inviting him as a visitor at the Regular Meeting.

Yes on an RFP for a space needs study regarding a new City Hall.

No on an RFP at this time regarding the Conference Center. There was comment about joint use facilities, joint partnership with Hockey Association and interested entity using the Ice Rink Multi Purpose Facility.

City Manager Wrede voiced a hope that someone will bring back the incorporation of the Town Center Develop Plan into the Comprehensive Plan.

Mayor Hornaday stated that he will give Non profit entities up to 5 minutes under Visitors at next meeting.

Council expressed concerns about some of the public testimony under Ordinance 05-17and what is true. These will be forwarded to the City Attorney for comment.

COMMITTEE REPORT

A. Road Standards Committee

B. Public Arts Committee.

C. Permanent Fund Committee. Final Meeting Synopsis October 25, 2005

PENDING BUSINESS

Ordinance 05-58(S)(A) as amended was taken from the table

McLAY/HEIMBUCH - MOVED TO TAKE OFF OF THE TABLE ORDINANCE 05-58(S)(A).

No discussion is allowed on a motion of this nature.

VOTE:(take from the table) YES: McLAY, WYTHE, SHADLE, STARK, NOVAK, HEIMBUCH.

Motion carried.

MAIN MOTION BACK ON THE FLOOR AS AMENDED: STARK/WYTHE - MAKE THE MOTION TO ADOPT ORDINANCE 05-58(S)(A) BY READING OF TITLE.

Amendment 1. with amendment that passed: THE COUNCILMEMBERS WILL RECEIVE $150.00 PER MONTH DURING THEIR TERM OF OFFICE AS A REIMBURSEMENT FOR EXPENSES AND THE MAYOR AT $200 PER MONTH. Amendment 2. Delete 2nd Whereas clause.

There was no discussion.

Mayor Hornaday recognized the informal call for the question by Councilmember McLay.

VOTE: (main motion as amended) YES: HEIMBUCH, McLAY, SHADLE. STARK.

NO: WYTHE, NOVAK.

Motion carried.

ADOPTED.

NEW BUSINESS

Mayor Hornaday recessed the Regular Meeting and call the Board of Adjustment to order, at 9:10 p.m.

A. Board of Adjustment Decisions.

1. In the Matter of Rick Foster and Dottie Harness Conditional Use Permit.

McLAY/HEIMBUCH - SO MOVED TO APPROVE THE WRITTEN DECISION REQUIRED UNDER HCC 21.68.060(E).

There was no discussion.

VOTE: YES: NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

2. In the Matter of Don Blackwell Nonconforming Use Application.

McLAY/HEIMBUCH - MOVED TO ADOPT. THE WRITTEN DECISION REQUIRED UNDER HCC 21.68.060(E).

Councilmember Wythe noted that she remains recused from this item.

The Mayor excused her from the table.

There was no discussion.

VOTE: YES: NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

Mayor Hornaday Adjourned the Board of Adjustment and Reconvened the Regular meeting at 9:11 p.m.

B. If approved under Agenda Approval. Resolution proposed, but not composed: Of the City Council of the City of Homer, Alaska on Partial Acceptance of Wetlands Study, contract with Conditions for Full Acceptance and Implementation. Councilmember Stark requests discussion.

HEIMBUCH/SHADLE - MOVED TO DISCUSS.

There was no discussion.

VOTE: YES: NON OBJECTION UNANIMOUS CONSENT.

Motion carried.

Discussion:

Wetlands issue is quite warm, although seems to be fading fast. City contracted to get a study of the wetlands, contractor came up with a map, the Corp of Engineers (COE) got a copy of the map, people got turned down for getting a zoning permit because the Ordinance says to get a zoning permit one must have all other permits. Ordinance 05-63 takes care of this. Meeting with the Realtors is Wednesday, November 16th. COE reported that they are going to stream line their procedures and give an answer, on almost every case, within one week. COE attitude is basically helpful and is believed that this will continue.

C. Consent Agenda Item T. Memorandum 05-174, from Councilmember McLay, Re: Financial Support for the Homer Chamber of Commerce Winter Carnival. Recommend allocation in 2006 Budget. ⁽¹⁾

McLAY/HEIMBUCH - MOVED FOR ADOPTION OF MEMORANDUM 05-174.

Homer's Winter Carnival is an annual celebration for the town's residents and a means to draw visitors to Homer in the off season. The Homer Chamber of Commerce sponsors the annual event and raises money for the parade and prizes. In addition to the parade, various events in town are scheduled around the carnival. These include music, entertainment, craft shows and ice races.

This year will mark the 50th anniversary of the Winter Carnival and the Chamber of Commerce is hopeful to make it a grand celebration. Original participants from the first carnival in 1956 will be included and a fireworks show is planned.

Many local businesses offer financial support to the Winter Carnival to make it feasible. It is my recommendation that the City of Homer participate in this special 50th anniversary Winter Carnival with a donation to the Chamber of Commerce in the amount of $15,000.

Recommendation: Funds in the amount of $15,000 be allocated within the 2006 budget for the contribution to the Chamber of Commerce for the Winter Carnival.

Fiscal Note: $15,000

Councilmember McLay, as a member of the Chamber of Commerce Winter Carnival Budget Committee, advised that he put a large dollar value in the Fiscal Note to attract attention. He commented that the Homer Chamber of Chamber (the Chamber) organizes the Homer Winter Carnival with the financial assistance from a lot of businesses. The Chamber also will organize the Winter Carnival Parade. 2006 is the 50th Anniversary of the Homer Winter Carnival. He apprized the Council of the activities that used to take place, years ago, during the Homer Winter Carnival such as sports meets involving all of the High Schools in the state and et cetera, such as a 50s Dance with 50s dress. He noted that this is still in the planning state and will be a grand celebration. One of the things is to put together a fireworks display. RFP feelers were put out and ball park cost is $7,500.00, a fair amount of money to raise. He advised the Council that he told the Chamber Committee that he would see what he could do, emphasized that he is not asking the City to pay for the fireworks. He stated that he is asking, us, as a City to see what we can do to help with this celebration and to see how much Council feels it can commit to this program.

VOTE: YES: NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

City Manager suggested that Councilmember McLay submit this on a budget amendment sheet.

Councilmember McLay inquired if he needed to make an amendment to send this to the Chamber's Budget Committee etcetera.

City Clerk advised that he could proceed with sending this to the Budget Committee since Council approved the Memorandum.

Councilmember McLay advised that he has information on those who were are the first Winter Carnival, 1956, including the Queen and that the Chamber has a Tierra and Cape, from 1960 or 1961 for that can be utilized for the queen. He reported that the plan is to keep this celebration current/past and to make it big and memorable.

RESOLUTIONS

A. Consent Agenda item Q. Resolution 05-120, Of the City Council of Homer, Alaska That Any Vote Affecting Mayoral or City Council Compensation Will Be Done by a Vote of the People During a General Election. Novak. Recommend adoption. Document to be presented by Meeting time Supplemental Packet

NOVAK/HEIMBUCH - MOVED TO ADOPT RESOLUTION 05-120.

Councilmember Novak read the body of the resolution and commented:

Section 1.2 of the Alaska Constitution states that "All political power is inherent in the people. All government originates with the people, is founded upon their will only, and is instituted solely for the good of the people as a whole". Compensation to elected officials is an established practice in Alaskan cities with a significant yearly budget to manage. The people want to feel that they have a vested interest in their elected representatives, and compensation for elected officials gives people that sense of vested interest. It can be awkward, and at the very least politically incorrect, for elected City Officials to vote on their own compensation. Allowing the community to vote on any issues of compensation allows them to recognize those who give of their time to make Homer a better place to live.

He expressed his opinion that the Council voting on their own compensation is awkward and that the people should decide this matter.

Councilmember Heimbuch voiced agreement, philosophically, adding that this is Council's decision.

Councilmember Stark noted that there are more important issues to be decided.

Discussion ensued pro and con.

VOTE: YES: NOVAK.

NO: McLAY, WYTHE, SHADLE, STARK, HEIMBUCH.

Motion failed.

B. Consent Agenda item K. Resolution 05-113, Of the Homer City Council Establishing a Formal Process for Identifying and Addressing Community Planning Issues and Concerns that have been Raised by the Council, the Advisory Planning Commission. the City Administration and the Public. Heimbuch. City Manager. Recommend adoption.

STEP 1: Establish a small working group that consists of two Council members, two Planning Commission members, the City Planner, the Public Works Director, and the City Manager. This group can get together as many times as is necessary but should complete its work within one month. The working group's charge is to identify the outstanding issues and concerns of all parties and to develop an agenda, meeting format, and goals and objectives for a workshop between the Council, the Commission, and the administration.

STEP 2: Conduct a workshop. The participants are the City Council, the Advisory Planning Commission, and the Administration. The workshop or workshops will be open to the public but the public cannot participate directly in the discussions. The purpose is to have direct dialog between the Council, the Commission, and the Administration. The workshop will be conducted using the format and agenda developed by the working group. One of the goals of the workshop will be to agree upon a list of issues and topics that the Council would like to solicit public testimony on.

STEP 3: The working group drafts a proposed action plan which identifies outstanding issues and problems and recommends steps that can be taken to address them. These recommendations are forwarded to the Council and the Planning Commission.

STEP 4: The Council schedules a public hearing on planning issues and concerns generally and on the proposed action plan specifically.

STEP 5: The Council, after considering the public comments, and hearing recommendations from the Planning Commission and the administration, takes steps to adopt an action plan to improve the overall community planning function within the City in order to better serve the public and provide the level and quality of service Homer's residents desire.

WYTHE/HEIMBUCH - MOVED FOR THE ADOPTION OF RESOLUTION 05-113 BY READING OF TITLE.

Discussion regarding two Councilmember

WYTHE - TO INSERT AN ADDITIONAL STEP NUMBER 1 AND THEN RENUMBER THE FOLLOWING STEPS ACCORDINGLY AND THAT FIRST STEP WOULD BE TO HAVE THIS DISCUSSION WITH THE COUNCIL AT A COMMITTEE OF THE WHOLE MEETING THAT WE COULD ACTUALLY PROVIDE INPUT TO WHOEVER THE APPOINTED MEMBERS WOULD BE TO THAT COMMITTEE.

Motion died for lack of a second.

Discussion:

That this not be a Council scripted meeting.

That this be designed to be a quasi venting session for potential, perceived or real problems.

To ensure that the Planning Commission does not see a preconceived agenda.

To discuss land issues.

Everyone has a slightly different perspective on what the problems are and how a session such as this might be productive.

There is an under current of public discontent that flows several different ways, generated in part by a lot of development in Homer by a new day.

This is not a witch hunt, it is to review the processes are working.

It may be found that the problems and agonies are fairly reflective and normally reflective of the kind of anxiety that attaches to this kind of development. This may be an expected level of controversy that attaches to normal develop in enhanced development times.

Council should send a couple of people into this meeting with some guidance of what the Council expects.

NOVAK/ - MOVED TO DELETE STEP ONE AND TO CHANGE STEP TWO TO STEP ONE AND TO SAY , CONDUCT TWO WORKSHOPS.

Motion died for lack of a second.

Discussion.

Refer properly to Planning Division and City Planner.

Working group is composed of one third of people involved in the worksessions.

The first step should be that those n the working group should be delegated.

Each individual or group understands their roles and responsibilities under the Code as currently exists now.

Idea of each party reviewing their own sphere of influence prior to a meeting is a good idea.

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

NO: WYTHE.

Motion carried.

C. Consent Agenda item O. Resolution 05-117, Of the City Council of Homer, Alaska Supporting Independent Fishermen and Urging that a Thorough Analysis of the Social and Economic Impacts of Excising Share-Based Programs in Alaska Must Occur Prior to Further Use in Alaska Especially Processor Quota. Shadle. Recommend adoption.

WYTHE/SHADLE - MOVED FOR THE ADOPTION OF RESOLUTION 05-117 BY READING OF TITLE.

Councilmember Shadle in response to Councilmember Wythe spoke to the validity of the Council adopting this Resolution. He noted the loss of jobs, the processors on the Spit with one of significant size, there is stagnated growth on Fish Dock Road, with Senate Bill 113 and with the possibility of regionalization could block the fishery economic future of the City of Homer. The City has a very valid impact. The pendulum seems to be swinging for this cause. He reported having a meeting with Gabrielle Ledoux (Representative and Fisheries Co Chair), who does not believe the Bill will pass, which is really good. He advised that he gave copies of this Resolution to Kodiak, Bethel, and Kodiak Borough, who are in the process of passing something. He informed the Council that he asked the City Clerk to forward this to all coastal communities in the state and keep the pendulum swinging our way.

Councilmember Wythe noted a typo in the fifth whereas clause, last sentence that should be were instead of where.

All concurred that the typo should be corrected and without an amendment.

VOTE: YES: NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

D. Consent Agenda item J. Resolution 05-112, Of the City Council Approving a Three Year Contract with Walt E. Wrede as City Manager. Mayor/Council. Fiscal Note: 100.5101.110 City Manager Salary. Salary increase is $4,000.00. Recommend adoption.

STARK/SHADLE - MOVED APPROVAL OF RESOLUTION 05-112.

City Manager Wrede was commended for his work and comment made that the contract should be for more than three years and ten years was mentioned. At AML, last week, comments were made by other municipalities that they wished that Walt Wrede were their City Manager.

WYTHE/HEIMBUCH - TO AMEND THE ANNUAL SALARY THAT WE HAVE PLACED HERE TO $95,200.00 RECOGNIZING THE FACT THAT THE COUNCIL JUST GAVE THEMSELVES A $100 A MONTH INCREASE AND THAT I WOULD THINK THAT THE CITY MANAGER WOULD BE ENTITLED TO, AT LEAST, AN ADDITIONAL COMPENSATION EQUAL TO WHAT WE WOULD VOTE FOR OURSELVES.

There was no discussion.

VOTE: (primary amendment 1.) YES: WYTHE, SHADLE, STARK, NOVAK, HEIMBUCH.

NO: McLAY.

Motion carried.

There was no further discussion.

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

Motion carried.

E. Consent Agenda item F. Resolution 05-75,Of the Homer City Council Authorizing the City Manager to Enter into an Agreement with the Kenai Peninsula Borough to Provide Fire and Emergency Medical Services to Kachemak Emergency Service Area for FY 2006 and July 1 to December 31, 2006 in the amount of $283,955.00. City Manager. Fiscal Note: Revenue of $283,955.00, Acct. 100.4602.035.Recommend adoption.

New Revised Agreement added under Agenda Approval.

WYTHE/NOVAK - MOVED FOR THE ADOPTION OF RESOLUTION 05-75 BY READING OF TITLE.

City Manager requested a small change in the resolution to correspond to the revised agreement, to eliminate "with an automatic annual renewal for two subsequent one year terms" from the 4th whereas clause.

There was no further discussion.

WYTHE/NOVAK - MOVED TO AMEND TO STRIKE IN THE 4TH WHEREAS CLAUSE EVERYTHING AFTER DECEMBER 31, 2006 EXCEPT THE ; AND SINCE THERE IS AN ADDITIONAL WHEREAS REMAINING.: WHEREAS, The KESA Board recommended to the KPB Assembly approval of the negotiated agreement for an eighteen month period for a total amount of $283,955.00 ($182,136 for FY 2006 and $101,819.00 for July 1 through December 31, 2006, [with an automatic annual renewal for two subsequent one year terms]; and

There was no discussion.

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

Motion carried.

COMMENTS OF THE AUDIENCE

Audience may comment on any matter.

Ken Castner stated that he has already signed in and was listening to the meeting in his office and that there were two things that struck him:

1) When the Mayor was handling some things in a general sort of a way and inquiring about putting an RFP out and was almost free wheeling and he, Mr. Castner, was struck by the lack of process.

2) Council had just discussed how powers are reserved to the people. Constitutional discussions could go on all night. There is a big difference between representative democracy where things are put before the people and public comment is taken and something that is decided for administrative convenience. He said that he feels this is happening. It is more convenient to not have public testimony or comment. The public has a right to comment, to object and to sue, which is when they will get sued. He stated that he was astounded with the Council started piece mealing the 2006 Budget and that the only person at the table that said, hey wait a minute we might want to do this the correct way through the normal budget process was the City Manager. He stated that all the Council thought that was just fine, to piece meal the 2006 Budget. "Let's pick something we like and pass it." The Clerk said don't worry you guys have already passed it 6/0 and to call the Chamber up you already have $15,000.00.

Mr. Castner said that he does not object to this, but is saying that this is no way to run the 2006 Budget.

Mayor Hornaday told Mr. Castner that he does not believe that this is what they did and that the Chamber still has to come back and ask for the money.

Councilmember McLay was allowed to speak and told Mr. Castner that he is wrong, because that goes to the budget committee, who will make a determination as to how much money.

Councilmember Stark interjected, clarifying that this is a difference between authorization and appropriation.

David Scheer, designer and developer in Homer, commented on the conversation about the Planning Department and Planning Community in Homer. He voiced appreciation of Councilmember Stark's comments about working with the COE. He challenged the idea that there is an inherent conflict between private property rights and public interest rights. He read: The purpose of planning is to guide development so that it enhances or at least protects the value integrity of the community, integrating individual projects into larger organization. This oversight benefits current property owners, business owners, community members, City budget and the future value of projects currently in the pipeline. He is currently making significant financial investments in Homer, personally, and on the behalf of clients, whose investments total in the millions of dollars and hundreds of acres and therefore is very interested in the Planning Community's ability to guide development patterns in ways that will enhance these investments. Right now the real estate market is right on the back side of a real estate bubble and the places that will feel the worst of the lull to come will be those places that develop without a sustainable long term plan. Those protected from the down turn will be those that offer investors unique character and a clear vision for enhancing that character. Homer is at a cross roads right now and needs to decide which path to take. Concern about some of the language that infers that the "something" (word not discernable during meeting and not discernable on tape) process should hamstrung the developers ushered through without guidance, a great mistake that benefits no one. Rather than criticize or politicize the process, the current work of the Planning Commission needs to be further elevated by support from the rest of the administration and elected officials. He commented about having a design and development firm in town and that he has developed a way of working that takes advantage of the benefits of sustainable planning to the simple bottom line. Strategic patterns of open space and trails are a keystone design element that addresses the primary concern of all parties. He informed the Council, having given them each a copy, of his introductory analysis of Homer's cost revenue patterns and to use this information to look at an alternative open space plan for the three subdivisions recently proposed in Homer. He noted that in all cases it shows that it is possible to address the primary complaints of neighbors by including trails and significant open space, while improving the simple bottom line for the developer as well as enhancing the value and character of the community and creating a positive cost benefit for the City budget. He stated that this is not tree hugger property, that he is too invested to be able to afford the emotional luxury. The fact is that green ways, trails and open space are money makers. The statistics quoted are confirmed by open space advocates and developmental groups like the National Association of Home Builders as well as governmental bodies like the municipality of Anchorage. The cost of community service studies across the country, including Anchorage show that revenues for development put more of a burden on community resources than it provides in taxes, fees, and other benefits and retail about 1 to 1.2 in Homer. The short fall is taken up by commercial properties and open space that has a surprisingly positive net benefit to the City budget. The common assumption that land must be developed to its highest and best use to benefit the public coffers comes with some major caveats. Development of functioning open lands that is not integrated into an over all strategy of amenity conservation is a net drain on the budget. Properties near dedicated green spaces or open space sell for 10 to 30% more than comparable properties and appreciate at 5 to 15% faster. He advised that comparisons in his study show how strategic inclusion of open space improves the bottom line for developers and cited the case of Stream Hill. 3 minutes were up.

Mark Landwehr thanked the Council for being here tonight, commented hearing the Council getting harangued and dogged out by the first commenter. He noted that the Council is here late at night doing a great job. He commended the Council for their work. He said that he never gets to see anyone in the audience on the camera. He encouraged the Council to not get rocked. He voiced concern about some news he saw about an employee of his who was shot to death and that the report was inaccurate. He reported to the Council that he read the coroner's report and spoke with the DA. He pointed out that his former employee was shot three times, the paper said once, and was shot with a single action .22 and not a derringer, per se. According to Mr. Landwehr and unknown to him was that the decedent was a closet drinker. He expressed his hurt over this death and that his friend is buried behind the Russian Orthodox church upon on the bench, in case anyone one would care to visit his grave. He expressed his opinion that this is important since there is going to be a trial. He told the Council that he had spoke to the news reporter. He stated that, when he was managing Burger King, people came to town and commented about losing all of the trees adjacent to Burger King, adding that these were spruce bark beetle killed and that these people came to save trees that were a tinder box and putting all at danger. He said that he has been seeing too many people dying for too many stupid reasons lately, wars etcetera. People paying for this President who constantly reiterates why hd id something because, basically, his magic is not working. He thanked the Council for being here, working hard and trying to figure out these things that are not easy. He encouraged the Council to read David Scheer's information. He thanked the Council.

Larry Slone said that Mr. Landwehr's comments were very interesting. He told the Council that he is glad that they approved the City Manager's contract and that they left in there the provision fro termination without cause, because things can change although not anticipated, better safe than sorry. He commented about Mr. Novak's notion of having the public vote on compensation for the Council and that this is, in general terms, a good idea. He told the Council that it is not doubted that they have the power to increase their compensation, which is why this power should be exercised very judiciously and that to read that power in any other way, in his mind, is a gross mis representative of the principle of participatory democracy. He thanked the Council for listening.

Mike Illg, City resident and coordinator of Homer Community Schools, stated that he is present just to stay on track with consistent communication with the City Council about the situation with Homer Community Schools possibly going to the City if doable or not. Consistent voice from community members, participants and non participants is to see something like this. The feeling is that it is time to solidify this program as a City Parks and Recreation Program.

Roger Davis wished the Mayor, Council and Manager a good evening. He said that he was sitting half asleep on his couch and heard something about $95,000.00 and wanted to come down and apply for the job, but someone already has it. He figured that he would offer his services for half of that and be his assistant. He voiced his support of the local Chamber and inquired about their relationship with the National Chamber of Commerce, advising that these support a political party that is in direct opposition to what he believes is the correct party, which makes him nervous. According to Mr. Davis the State Chamber of Commerce believes that the Permanent Fund should be tapped and not have a reasonable progressive income tax, which makes him nervous. He said that some of his tax dollar, although at the lower end, goes to support a group that supports a political party that is worrisome. He asked for someone to look into what affiliation the Local Chamber of Commerce has. He stated that he thinks that the City Manager, Mayor and Council do a good job and that he probably won't be back for another 4 or 5 years.

COMMENTS OF THE CITY ATTORNEY

City Attorney Tans was not present.

COMMENTS OF THE CITY CLERK

City Clerk Calhoun had no comment.

COMMENTS OF THE CITY MANAGER

City Manager Wrede had no comment.

COMMENTS OF THE MAYOR

Mayor Hornaday offered congratulations to Councilmember Stark for getting elected to the AML Board of Directors and City Manager Wrede as the President of the Manager's Association. He voiced his hope that both of them can bring some common sense to that organization.

COMMENTS OF THE CITY COUNCIL

Councilmembers McLay, Heimbuch, and Wythe had no comments.

Councilmember Shadle suggested that the Planning Commissioners be invited and asked to attend the beginning meetings at the AML Conference.

Councilmember Stark advised that he will be attending the Resource Development Council meetings November 16th.

Councilmember Novak stated that he will be spending some time thinking on how he is going to spend the additional money and thanked the Council.

ADJOURNMENT

There being no further business to come before the Council, Mayor Hornaday adjourned the meeting at 10:08 p.m. The next Regular Meeting is scheduled for Monday, November 28, 2005 at 7 p.m. and the next Committee of the Whole is scheduled for Monday, November 28, 2005 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: ___________________________

1. Clerk's Note: A memorandum cannot amend the budget it can only suggest or authorize consideration.