Session 06-29, a Regular Meeting of the Homer City Council was called to order at 7 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, NOVAK, ROBERTS, SHADLE (telephonically), STARK, WYTHE.

STAFF: CITY CLERK CALHOUN

DEPUTY CITY CLERK JOHNSON

CITY MANAGER WREDE

FINANCE DIRECTOR HARVILLE (portion)

PUBLIC WORKS DIRECTOR MEYER (portion)

Council met as a Committee of the Whole from 4:00 to 5:25 p.m. Agenda items were the 2007 Budget, Concept of Substitute/Alternate Planning Commissioners, Street Light Pole - Safety issue on dark street, $100,000.00 Deprecation Reserve and $100,000.00 in Operating Account until such time as reach 50% compliance with GASB Accounting Rules beginning with 2007 Budget, and the regular agenda items.

Council conducted a Worksession, from 5:30 to 5:57 p.m., with the Corp of Engineers regarding the East Boat Harbor Feasibility Study.

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 additions: Written Comments on MattersAlready on the Agenda, and to Announcements Presentation Borough Reports Commission Reports Councilmembers Novak and Stark AML Juneau Trip Reports. Councilmember Wythe requested addition of discussion of the City Advocation Campaign. under Pending Business as Item A.

PUBLIC COMMENTS UPON MATTERS ALREADY ON THE AGENDA

Except Public Hearing items - Ordinance 06-62, 2007 Budget, Extending the City Attorney Contract, Port and Harbor Tariff.

Frank Griswold, City resident, spoke about Ordinance 06-58 and that he had submitted six pages for the supplemental packet and that if the Council did not take the time to read that, they will probably not pay much attention to what he as to say. He pointed out the following:

He told the Council that they should vote Ordinance 06-58 down or seek a legal opinion. He also commented on Ordinance 06-63, Marine Commercial, up for introduction on the Consent Agenda. Regarding Ordinance 06-63, Mr. Griswold stated the following:

Mr. Griswold advised the Council that he testified to the Planning Commission that the proposed amendments would make the Code more violator friendly, noting that his comments were not included in Council's packet. Staff cherry picked phrases from past Comprehensive Plans to justify this Ordinance, while ignoring the primary reason that residential uses were originally discouraged on the Homer Spit. Regarding Tsunami, he stated that just because no tidal wave has washed over the Spit in the last forty years, the danger to public health, safety and welfare should not be ignored. The 1999 Comprehensive Plan includes the following objectives: Provide for public safety, while achieving a balanced mix of water dependent and marine related activities on the Homer Spit. Promote a low impact use concept for the west side of the Spit for the update of the zoning code. He commented on whereas clauses: First whereas clause, that it mentions only the part about maintaining a mix of land uses and leaves out the part about providing for public safety. So what to the fourth whereas, that states that the mobile food services and itinerant merchants directly compete with established businesses, which operate on a seasonal basis on the Spit. He stated that this is a really bad ordinance and encouraged the Council to vote it down.

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.)

A. Homer City Council unapproved meeting minutes of October 23, 2006 Special and Regular Meeting. City Clerk. Recommend approval.

B. Ordinance 06-63, Of the City Council of Homer, Alaska Amending Homer City Code Marine Commercial District Sections 21.52.020 Permitted uses and structures, 21.52.030 Conditional uses and structures, and 21.52.040 Dimensional requirements. Planning Commission. Recommend introduction and first reading and conduct Public Hearing and Second Reading December 11, 2006.

Memorandum 06-186, through City Manager, as backup.

Placed under Ordinances as Item D.

C. Ordinance 06-64, Of the City Council of Homer, Alaska Accepting and Appropriating a Grant from the AHSO in the Amount of $15,319.00 for Homer Police Department Enhanced Accident Investigation and Authorizing the City Manager to Execute the Appropriate Documents. City Manager. Recommend introduction and first reading and conduct Public Hearing and Second Reading December 11, 2006.

Memorandum 06-187, through City Manager, as backup.

D. Ordinance 06-65, Of the City Council of Homer, Alaska Approving a Settlement Agreement between the City of Homer and Gates Construction Inc. Regarding 2004 Property Taxes and Appropriating $5,639.67 for that Purpose. City Manager. Recommend introduction and first reading and conduct Public Hearing and Second Reading December 11, 2006.

Memorandum 06-189, from City Manager.

E. Ordinance 06-66, Of the Homer City Council Appropriating and Accepting the Alaska Department of Home Land Security and Emergency Management Grant in the Amount of $16,400.00 for Homer's Emergency Operations Plan and Authorizing the City Manager to Execute the Appropriate Documents. City Manager. Recommend introduction and first reading and conduct Public Hearing and Second Reading December 11, 2006.

Memorandum 06-188, through City Manager, as backup.

F. Ordinance 06-67, Of the City Council of Homer, Alaska Approving a Settlement Agreement in Fuller vs. Homer, Case Number 3HO-02-78 CI, Amending the FY 2006 Operating Budget to Appropriate Settlement Funds in the Amount of $15,750.00 and Authorizing the City Manager's Execution of the Appropriate Documents. City Manager. Recommend introduction and first reading and conduct Public Hearing and Second Reading December 11, 2006.

G. Resolution 06-141, Of the Homer City Council Establishing a Global Warming Task Force to Advise the City on Methods to Plan for and Mitigate the Impacts of Climate Change and Reduce the Emission of Greenhouse Gases within the City. Mayor. Recommend adoption.

Placed under Resolutions as Item C.

H. Resolution 06-155, Of the City Council of Homer, Alaska Acknowledging the Surplus Equipment Bid Results. City Clerk. Recommend adoption.

I. Resolution 06-156, Of the City Council of Homer, Alaska Authorizing the City Manager to Dispose of Surplus Equipment that is Obsolete and Unneeded through the Surplus Equipment Sealed Bid Process. City Clerk. Recommend adoption.

J. Resolution 06-157, Of the Homer City Council Adopting an Alternative Allocation Method for the FY 07 Shared Fisheries Business Tax Program and Certifying that this Allocation Method Fairly Represents the Distribution of Significant Effects of Fisheries Business Activity in the Cook Inlet Fisheries Management Area. City Manager. Recommend adoption.

K. Resolution 06-158, Of the City Council of Homer, Alaska Designating Signatories of City Accounts and Superseding any Previous Resolution so Designating. City Clerk. Recommend adoption.

L. Resolution 06-159, Of the City Council of the City of Homer, Alaska Authorizing the Execution and Delivery of a Lease-Purchase Agreement and Related Documents with Respect to the Lease Purchase of One Track Excavator and Two Rubber Tire Front End Loaders; Authorizing the Executing and Delivery of Documents Required in Connection Therewith; and Authorizing the Taking of all Other Actions Necessary to the Consummation of the Transactions Contemplated by this Resolution. City Manager. Recommend adoption.

Placed under Resolutions as Item E.

M. Memorandum 06-190, through City Manager, Re: Airport Concession Subleases for Polar Car Rental, Jeeps R Us and Hertz/Pioneer Car Rental. Recommend Approval.

N. Memorandum 06-191, from Mayor, Re: Appointment of Frank Mullen to the Permanent Fund Investment Committee. Recommend confirmation.

O. Memorandum 06-192, from City Clerk, Re: Liquor License Renewal for Fat Olives Restaurant Eating Place/Public Convenience. Recommend voicing non objection and approval.

P. Memorandum 06-193, from Shadle, Re: Investigation of Truthfulness of Stark Allegations. Recommend approval.

Placed under New Business as Item C.

Councilmember Wythe pulled Item P. Memorandum 06-193 and placed it under New Business as Item. 13. C.

Councilmember Novak pulled Item G. Resolution 06-141, and placed it under Resolutions 14. C. Pulled Item B. Ordinance 06-63 and place it under Ordinances as Item 9. D.

Councilmember Heimbuch pulled Item L. Resolution 06-159 and place dit under Resolutions as Item 14. D.

NOVAK/WYTHE - MOVED TO APPROVE THE CONSENT AGENDA AS AMENDED.

There was no discussion.

VOTE: YES: NON OBJECTION. UNANIMOUS CONSENT

Motion carried.

VISITORS

A. Chamber of Commerce, Executive Director Tina Day.

The Director was not present.

See where rules were suspended after Public Hearing and Ordinance 06-53 to hear the Chamber President and Executive Director.

ANNOUNCEMENTS/PRESENTATIONS/BOROUGH REPORT/COMMISSION REPORTS

A. Memorandum 06-196, from Councilmember Stark, Juneau AML Trip Report.

B. Memorandum 06-197, from Councilmember Novak, Juneau AML Trip Report.

Councilmember Novak briefly stated that this was his fourth AML Conference, in Juneau this year and that it was an excellent conference and that he was pleased with the Program. He reported that he took the newly elected officials training again, because after three years it helps to go back. There were some excellent workshops in the second part of the session, one of which was on the PERS/TERS by Michael Lamb and was one of the best sessions of the program. He commented on a proposal by AML to the State on how to resolve the problem.

PUBLIC HEARING(S)

A. Ordinance 06-62, Of the City Council of Homer, Appropriating Funds for the Calendar Year 2007 for the General Fund, the Water - Sewer fund, the Port/Harbor Fund, Debt Funds, and Capital Reserve Funds (Conditional Expenditures). City Manager. Fiscal Note: General Fund $10,521,747.00, Water-Sewer Fund $3,343,780.00, Port/Harbor Fund $3,275,528.00 Capital Projects $2,519,372.00, Internal Service Funds $1,524,000.00, Total Expenditures:$21,184,427.00 (First Reading and Introduction November 20, 2006, Public Hearings November 20, 27 and December 4, 11 2006, Second Reading December 11, 2006.) Attached Resolutions follow same schedule.

A.1. Resolution 06-Number to be assigned, Of the City Council of Homer, Alaska Extending the City Attorney Contract with Perkins Coie for the Period of January 1, 2007 through December 31, 2007 in the Amount of $7,650.00 per Month for Forty Five Hours, Increasing the Hourly Rate from $185.00 to $200.00 and Authorizing the Mayor to Execute the Contract. City Clerk PAGE 585

Memorandum 06-194, from City Manager as backup.

A.2. Resolution 06-Number to be assigned, Of the City Council of Homer, Alaska Revising Certain Portions of the Port and Harbor of Homer Terminal Tariff No. 600. City Clerk.

Fred Lau, Administrator of the Homer Senior Citizens, thanked the Council for their continued support of the non profits, that the funding level this year is the same as it was last year. He expressed appreciation from the non profits, noting that they are all faced with inflation and with increased costs such as fuel and electricity. He encouraged the Council to consider an increase in that amount. He acknowledged that part of the funds that go to the Homer Foundation go into a fund with the idea that eventually that will come back and help pay for the non profit portion, but that it will probably not occur in his lifetime. Believing this a really good idea he encouraged the Council to continue that and possibly increase those funds also, for faster growth. He relayed that Homer Seniors have really appreciated the funding from the City, adding that at one time they received revenue sharing through the City, about $10,000.00. He noted that Homer Senior Citizens does receive a small amount through the foundation and that most non profits use these as leverage funds, therefore, this funding is really important to the community non profits. He thanked the Mayor and Council.

Mayor Hornaday commented on the amount in the proposed budget for non profits: $80,000.00 for Pratt Museum, $40,000.00 for Homer Foundation, $30,000.00 for Chamber of Commerce.

Heather Beggs, Homer City resident and Museum Director, thanked the Council for all their work on the 2007 Budget. She submitted a short memo in support of Councilmember Novak's proposed budget amendment to adjust the funding line for the Pratt in 2007. After her presentation and report to the Council on October 23rd, she noted that she had submitted a response to one of the Councilmember questions regarding museum funding and other small Alaskan towns, comparable to Homer and that she just put a copy in with the memo. She relayed that what she found was shocking that in Alaskan towns of similar size, or smaller than Homer, the contribution, on average, was 66% of operating costs of community museums in addition to building maintenance. Most of these museums operate as the Pratt does, a public/private partnership with their City. The Pratt only receives 12% of its operating cost from the City of Homer, and then leverages support from this base funding to obtain the additional support necessary to operate a museum for the Citizens of Homer. The proposed budget amendment does not request that the City bump up its contribution from 12% to 66%, rather it is recommended that the Council amend its budget line to proportionately meet the increase in operating costs since funding went down in the year 2000. The reduction in museum funding six years ago helped the City budget that year's budget, but that funding level has not risen in subsequent years, with the cost of operations. Operational costs increase on an average of 4% each year. In 2001 City contributed 15% of the operating costs. The amendment is manageable and a modest request. She lauded the museums ability to leverage funds, adding that it is vitally important that the decreased funding level, at least, rise to proportionately with the annual costs of operation. She emphasized the work of the Pratt Museum and thanked the Council.

Mayor Hornaday inquired if Ms. Beggs had figures from Kenai, Soldotna and Seward.

Heather Beggs advised that Kenai has a visitor center and museum combined, that Soldotna does not have museum, etcetera.

Marilyn Sigman, City resident and Director for the Center of Alaskan Coastal Studies (CACS), commented that the CACS has been very fortunate, for the last four years, to get funding through the Homer Foundation and expressed appreciation. She noted that this allows CACS to serve the people in the community with free programs. She expressed her hope that the Council would think of their support of non profit funding as an investment in services that the City can't really afford: Seniors, Teens, Troubled Teens, Pre Schoolers, promoting arts, environmental stewardship and education. The funds are a leveraging tool, the City dollars are very powerful in terms of non federal match, that it demonstrates the community support needed to obtain other foundations' funding. and even governmental entities look to see if there is community support. In addition to money it leverages a lot of volunteer time, literally hundreds of people serving on non profit boards, building trails, building buildings, teaching kids, doing all sorts of services in the community. Non profits have professional resources, in terms of staff and jobs. Non profits spend a lot of money on materials, travel and workshops, which are all local purchases. She encouraged the Council, in their wisdom, to continue funding the non profits, to keep that in the budget, and to work with the Homer Foundation. She interjected that at the Homer Foundation annual meeting they advised that they are now considered a model for local philanthropy and that they, the Homer Foundation, will be going all over the state to explain how they did it. She strongly urged the Council to consider adding additional funds, that there are lot of non profits who are spending a lot of time doing fund raising and who would like to spend more time doing what they are kind of constituted to do.

Mayor Hornaday noted that Donna Bondioli, Chamber of Commerce, was present.

WYTHE/NOVAK - MOVED TO SUSPEND THE RULES, to allow for Visitor Presentation at this time.

There was no discussion.

VOTE: YES: NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

Donna Bondioli, President of the Chamber of Commerce addressed the Council and thanked them for their past support given to the Chamber and the confidence that they have in the Chamber of Commerce. They look forward to continuing their marketing contract with the City of Homer. She distributed information on the marketing activities. During the first five months of 2006 the Chamber of Commerce spent about $51,000.00, currently well exceeds $60,000.00, to promote Homer. They look forward to working with the City again on this. She provided some information about the new Executive Director, Tina Day, and lauded her experience and expertise.

Mayor Hornaday reopened the Public Hearing for Frank Griswold, who stated that he did not understand the process for testifying on A.1. and A.2.

Frank Griswold commented on the City Attorney Contract and the $200 an hour incentive for the City Attorney to involve the City in litigation, since litigation fees are paid in addition to the monthly salary. Mr. Griswold clarified that he is not saying that the City Attorney is doing that, but that it is a flaw in the contract. There is no contingency or penalty for involving the City in litigation. There is also no basis for comparison, in the packet, to other City Attorney monthly salaries and hourly wage, on the Peninsula. He stated that he does not think that the City of Soldotna pays their City Attorney $200 an hour, adding that their attorney is to whom the City of Homer has been writing a lot of checks to lately regarding the Abbie Fuller litigation. He suggested that it may also be time to consider hiring Gordon Tans or some other attorney as an in house attorney to head off litigation before it starts. He stated that at almost every City Council meeting and Planning Commission meeting, that he has been to, the input from an attorney would have been very beneficial. He thanked the Mayor and Council.

ORDINANCE(S)

A. Ordinance 06-53, Of the Homer City Council Amending Homer City Code by Creating a New Title 15, "Special Service Districts", Creating the Ocean Drive Loop Special Service District, a Differential Property Tax Zone to Levy Property Taxes to Fund Special Services Provided in the District, and a Citizen Advisory Council. Bluff Erosion Control, Special Services District, Property Tax to Pay for Maintenance. City Manager (First Reading September 25, 2006, Public Hearing and Second Reading October 9, 2006, Second Reading Postponed to November 27, 2006 Main motion is on the floor as postponed..)

Main motion as postponed is on the floor: WYTHE/MCLAY - SO MOVED, FOR THE ADOPTION OF ORDINANCE 06-53 FOR SECOND AND FINAL READING.

Councilmember Heimbuch called a point of order that Chamber of Commerce Director had just arrived.

HEIMBUCH/NOVAK - MOVED TO SUSPEND THE RULES, to allow Chamber of Commerce Director to address the Council.

There was no discussion.

VOTE: YES: NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

Tina Day, Executive Director of the Chamber of Commerce, apologized for her tardiness. She introduced herself and that she will be officially taking over the role of Derotha Ferraro on December 11, 2006. She advised that she has been volunteering at the Chamber since she has been in town and transitioning from Anchorage. She stated that she has always wanted to be in Homer for the last twenty years, that she feels very blessed to be here, commented on her background in marketing and that her doors are always open.

Mayor Hornaday noted the budgeted amount for the Chamber.

Ms. Day expressed appreciation, on behalf of the Chamber, for the appropriation. She reiterated some of Ms. Bondioli's comments.

Back to Ordinance 06-53.

Councilmember Novak comments: There are several points in this Ordinance that imply that the City will do certain things, second whereas - for the City to provide certain services, etcetera. Line 114, HCC 15.10.120, City responsibilities, a) City Manager responsible to give the Advisory Council opportunities to participate in the formation of and review and comment upon City plans to provide services to the district, budgets for the district, and City proposals that will have significant effect and direct effect upon the seawall, its operation and maintenance. This implies that the City is, potentially, going to do some maintenance for some fee or as a in kind service. b) The City will provide reasonable funding for the costs of conducting meetings, performing the functions of the Advisory Council. Problem expressed with the City being involved with the maintenance of this wall, adding that the City does have two lots there. The intent of this Ordinance is to create a special service district to generate the money to repair and maintain the wall and to also set up a special service district through the defined method within this Ordinance, which explains how to do it and set it up for the residents of this district. Suggest revising this Ordinance to reflect the fact that this is to provide service to set up this special service district and a way to levy the tax for the district to repair the wall. The Ordinance needs to be changed to reflect that the City is not going to repair the wall and is basically going to be a bank for the district's money.

NOVAK/WYTHE - GOING TO ASK THAT THIS ORDINANCE BE POSTPONED TILL DECEMBER 11TH SO THAT IT CAN BE REVIEWED, BASED UPON HIS PROPOSAL HERE, BY THE CITY ATTORNEY AND THAT QUITE POSSIBLY THE CITY MANAGER MIGHT WANT TO ADD HIS INPUT ON THAT.

Mayor Hornaday recognized this motion and called for a second.

Councilmembers Novak, Heimbuch and Stark commented pro and con to the postponement and on Councilmember Novak's statement before his motion to postpone, which relates to the motion to postpone.

City Manager asked for and received confirmation on what the Council wanted: Like to see a substitute Ordinance back next meeting for comparison purposes that would still set up a special service district, but the only service that the City would provide is a banking service. So the City would levy a property tax on the property owners behind the Seawall. The City would collect money and hold it in sort of an escrow or trust account, so that there is money there for the property owners to pay their fair proportionate share of what it costs for them to maintain their wall. Then when they get a legal entity together or somebody who is authorized to sign for the money or spend the money, the City would then release the money and they would do all the work, contracting work. The City would not coordinate any maintenance activities. She thanked the Mayor and Council.

VOTE: (postponement) YES: WYTHE, SHADLE, STARK, NOVAK, HEIMBUCH, ROBERTS.

Motion carried.



B. Ordinance 06-58, Of the City Council of the City of Homer, Alaska, Amending the Homer City Zoning Map to Rezone Portions of the Rural Residential (RR) to General Commercial One (GCI). City Manager. Planning. ( Introduction and First Reading October 9, 2006, Public Hearing October 23, 2006, Second Reading for November 27, 2006.)

HEIMBUCH/NOVAK - MOVED TO ADOPT.

Discussion: What is Council's take on this being a spot zone? This is just changing this one lot. There are some legitimate questions about doing that. Council inquired about the existence of a legal opinion cited in the Staff Report, of which they had not been copied. Does the Conditional Use Permit (CUP) continue or is it void?

City Manager Wrede stated that he does not know the answer.

WYTHE/NOVAK - I WOULD MOVE TO POSTPONE ORDINANCE 06-58 UNTIL OUR DECEMBER 11TH MEETING PENDING AVAILABILITY OF ANY LEGAL REVIEW THAT THERE WAS OR TO GET A LEGAL REVIEW IF ONE DOES NOT EXIST NOW.

Planning Commission Chair Kranich was called to the public address table and responded to Council inquiry that the information the Commission was given was that the CUP would continue in force on the lot, even though the zoning would be the same for the entire lot. He added that he does not know if there was a formal opinion, but that he thinks that the City Planner spoke with the City Attorney and that was the feed back she got from him.

VOTE:(postponement) YES: ROBERTS, WYTHE, SHADLE, NOVAK.

NO: HEIMBUCH, STARK.

Motion carried.

C. Ordinance 06-59, Previously Ordinance 05-42, Of the City Council of Homer, Alaska, Amending Homer City Code Section 9.04.046, Real and Personal Property Tax--Exemption, to Provide for the First $20,000.00 of Assessed Valuation on Owner-Occupied Permanent Residential Property to be Exempt from City Real Property Tax. Fiscal Note: 809 Properties applied for a Borough Exemption in 2005. 809 multiplied by $20,000.00 equals $16,180,000.00 in exempt property. $16,180,000.00 multiplied by the City's mill rate - 4.5 mills equals $72,810.00 in reduced City property tax revenue. (First Reading August 8, 2005, Public Hearing August 22, 2005, Second Reading postponed on September 26, 2005, to December 12, 2005, and deferred to October 9, 2006, scheduled for reintroduction due to quarterly interval, Public Hearing October 23, 2006, Second Reading November 27, 2006.)

WYTHE/NOVAK - SO MOVED FOR THE ADOPTION OF ORDINANCE 06-59 FOR SECOND AND FINAL READING BY READING OF TITLE ONLY.

Councilmember Heimbuch commented on the budget process and that no decision could be made on this matter until tax revenues are better known.

NOVAK/ROBERTS - I WOULD MOVE TO POSTPONE THIS TO DECEMBER 11TH, LIKE THE ORDINANCE BUT I ALSO RECOGNIZE UNTIL WE WORK OUT THE BUDGET.

Discussion on pro and con to postponing and length of time to postpone.

STARK/SHADLE - I WOULD MOVE TO AMEND TO MAKE THAT THE FIRST MEETING IN JUNE. (June11, 2007).

There was no discussion.

VOTE: (amendment to motion to postpone) YES: SHADLE, STARK, NOVAK, ROBERTS.

NO: HEIMBUCH, WYTHE.

Motion carried.

There was no discussion.

VOTE:(motion to postpone as amended) YES: STARK, NOVAK, ROBERTS, SHADLE.

NO: HEIMBUCH, WYTHE.

Motion carried.

D. Ordinance 06-68, Of the City Council Amending Homer City Code Title 1, General Provisions, I. General, by Adding a New Chapter 1.18, Code of Ethics, and that Section 9. Code of Ethics, of the Council's Operating Manual, Shall be Replaced with the Codified Version. Shadle (First Reading and Introduction November 27, 2006, Public Hearing and Second Reading December 11, 2006.)

SHADLE/STARK - SO MOVED TO ADOPT ORDINANCE 06-68 FOR FIRST READING AND INTRODUCTION BY READING OF TITLE ONLY.

Comment that this is premature, it is a good ordinance, but needs some work and time.

NOVAK/SHADLE - I'LL MOVE TO TABLE.

There is no discussion on a motion to table.

VOTE: (table) YES: HEIMBUCH, ROBERTS, WYTHE, SHADLE, STARK, NOVAK.

Motion carried.

E. Consent Agenda Item B. Ordinance 06-63, Of the City Council of Homer, Alaska Amending Homer City Code Marine Commercial District Sections 21.52.020 Permitted uses and structures, 21.52.030 Conditional uses and structures, and 21.52.040 Dimensional requirements. Planning Commission. Recommend introduction and first reading and conduct Public Hearing and Second Reading December 11, 2006.

Memorandum 06-186, through City Manager, as backup.

NOVAK/WYTHE - MOVED TO INTRODUCE ORDINANCE 06-63 BY READING OF TITLE.

Council comments: There are some questions about the itinerant merchant structures, lot sizes, and other concerns. City Planner had voiced some concerns.

Mayor Hornaday called Planning Commission Chair Kranich to the public address table to respond to Council questions and concerns. Mr. Kranich stated that the Planning Commission did disagree with the City Planner on the minimum lot size, that the City Planner recommended 10,000 square feet and that both the Port and Harbor Commission and Planning Commission recommended 20,000 square feet. He relayed that the Commissions felt that they could maintain the type of setting that is there now, the larger lot sizes could lead to a resubdivision, however, still maintaining the 150 foot lot width for any new lots created would tend to reduce or eliminate the resubdivision of an existing lot. Regarding the itinerant merchant matter, he advised that the Commission decided that, with the small area out there, for the itinerant merchants and mobile food services to set up shop for part of the year, that it would be an unfair competition to the permanent merchants that have structures and who are paying some hefty taxes out there. The people that have infrastructure are setting on some valuable real estate and are paying a lot of dollars into the City coffers. The Commission felt that they should level that playing field. The Commission did not look at a specific location for itinerant merchants/mobile food services and that, in this zone, these itinerant services should not be there at all. He responded that, from what he has seen and with his previous experience sitting on the City Council, the people came in and got a license from the City for the itinerant merchant/mobile food service and did not pay the City but pittance for that property, yet were sitting in direct competition with people that are paying the City pretty significant funds.

Council: Message is loud and clear, local kids cannot go out on the Spit and sell koolaide and cookies, but, for example, somebody from Tillamook, Oregon that comes up here for three months is entitled because they have the money. This Ordinance is for introduction, public hearing on the 11th, etc.

VOTE: YES: NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

CITY MANAGER'S REPORT

A. City Manager's Report (Updates/Follow-up: 1. Budget Notes: The Budget Ordinance introduced November 20. The Budget becomes the Council's budget to amend and modify as it sees necessary. Comment about the procedure for attached Resolutions. Changes submitted for November 20th were either clerical or mathematical errors. we discovered. The Manager's budget now includes one new water and one new sewer maintenance positions. These are full time positions that are desperately needed and have been requested for at least the past five years, are added without raising water and sewer fees or tapping reserve funds. 2. KESA Contract Negotiations: The service contract between the City of Homer and the Kachemak Emergency Services Area (KESA) is set to expire on December 31. We have begun some preliminary discussions about a new contract but neither party expects to be finished by that date. Likely approval of a short extension of existing contract will be requested. The current contract provides for the Homer Public Works Department Motor Pool to do the maintenance and repair on KESA vehicles. KESA pays for this service at an hourly rate based upon the actual work provided. This payment is separate from and in addition to the base contract amount. KESA would like to discuss having a separate contract for maintenance and repair services that is long term. Public Works Department has recommended that we phase out performing maintenance in KESA vehicles altogether, due to limited shop space and time, and a very limited number of staff in the motor pool. The mechanic who does all of the work on Fire and Emergency medical apparatus will be retiring soon. The City fleet is expanding and aging. Serious backlog of maintenance work. Our first priority has to be the City fleet. 3. Homer - Kachemak City Inter-Governmental Agreement: As many of you know, John Fowler is developing a new subdivision immediately to the East of Bear Creek Canyon. The Planning Commission has approved a preliminary plat for this subdivision. The access road is Kachemak City's Golden Plover and it is not always well maintained and is not constructed to a standard that would handle a significant amount of increased traffic. The two Cities have requested that the developer bring Golden Plover up to at least the City of Homer's Rural Road Standards. This would make the road much safer with the increased traffic and it would also make it easier to maintain and allow the City of Homer's equipment to get up there much easier. The two Cities are working on an Inter-Governmental Agreement that would provide for an increased level of maintenance on Golden Plover. Council should be aware that this agreement may include the City of Homer maintaining Golden Plover for a fee and other considerations. 4.Manley Building/Site Restoration: There was an oil spill which took place at the fuel tank next to the Manley building several years ago. The City and its contractor did what it could to clean up the spill and remediate the contaminated soil at the time but could not finish the job until the Manley building was torn down because oil had seeped under the cement slab. After the building was razed, PW and the contractor found that the contaminated soil extended further than anticipated. The contaminated area is now cleaned up and the hole was refilled with clean dredge spoils. The pile of material that you see at the site is contaminated soil which is being remediated. This soil can be moved and treated at another site in the spring if we have a good proposal for development there. Anticipate putting RFP's out in early December. 5. Comprehensive Plan: The Contract is signed and the consultant has already commenced work according to the contract work schedule. The consultant recommends that the City establish a citizen's advisory committee to advise it and provide feedback. This committee would be independent of the City and its boards and commissions. It would represent a broad spectrum of the public and attempt to reach out to as many stakeholders as possible. This might include, but not be limited to the business community, contractors and developers, social services, environmental community, churches, etc. This model has been very successful in other communities. Beth McKibben recommends this approach and the Mayor has given a tentative endorsement of the idea. Beth plans to send letters to various interest groups to measure their interest in participating and to see if they might nominate someone to represent them. The Mayor will make the appointments and Council will confirm. This committee will provide its advice and input to the consultant. The consultant and City staff will bring all draft documents to City Boards and Commissions and ultimately the Council for approval. 6. BLM-40 Acres: The City is moving forward in its attempt to acquire this parcel from the federal government. A BLM representative came to Homer on November 9th to discuss the project with us. This parcel contains the upper reaches of the Bear Creek Canyon and is immediately adjacent to the Fowler property and development. It is a critical piece of property because it provides a missing link in the greenways trail project and it could complement the Bear Creek Canyon proposed park by putting the entire canyon in conservation status. If the proposed trail is completed, it will be possible to walk from East End Road right to the Wynn Nature Center and beyond. The City application for the 40 acres will be focused upon trails, parks, habitat protection, and erosion control. 7. Ramp 7: Ramp 7, which was significantly damaged when a large fishing vessel rammed into it, has now been replaced. The work was completed the week of November 6. The contractor will also be installing the high mast light the City purchased several years ago which will provide illumination on the east side of the harbor in an area that is presently pretty dark. Expect this work to be complete within the next week. 8. Exxon Valdez Oil Spill Trustee Council Projects / Funding: The Exxon Valdez Oil Spill Trustee Council recently notified the City that it will be considering funding for a new round of community projects at its meeting on November 14. Carey Meyer will attend the meeting and provide testimony on the City's behalf. The spending plan to be voted on contains money for projects that protect water quality in water bodies impacted by the oil spill; including Kachemak Bay. This proposal focuses on municipal storm water, pollution control in municipal harbors, and sewer systems. The current proposal contains around $10 Million dollars for sewer upgrades in Homer. It also contains money for storm water projects and water quality monitoring in the harbor. The City staff is working with DEC and the Trustee Council staff on defining needed projects in Homer. 9. Hospital Trail: This week I had a meeting with Charlie Franz to discuss a proposed trail easement that would go behind the hospital across land the City leases to the hospital. The proposed trail would provide a direct link between Karen Hornaday Park and Hohe/East Bayview area where other trails leading toward the High School are proposed. The Hospital would like part of the trail to be wheel chair (ADA) accessible so that patients can have easy access to the park. This trail would also provide another link to the proposed greenway project. It has strong support from trail advocates and has already been endorsed by both hospital boards. It is anticipated that the trail could be built largely with volunteer labor. If the Council likes this idea, the next step would be to draft a trail easement document, amend the plat, and amend the lease to make reference to the easement. Documents to the Council for approval. 10. NEA Grant: The City, the College, and the Pratt Museum recently collaborated on an HEA Learning Grant application. We recently learned that the grant was awarded. Helen and Carol Swartz will be traveling to Seattle to discuss the award and implementation of the grant. This is a joint project that benefits all three organizations and the community at large. November Employee Anniversaries: Jim Hobbs PWD 26 years, Ed Barcus PWD 23 years, Dave Bolt PWD 23 years, Glenn Satterfield PWD 10 years, Dave Shealy HPD 9 y ears, Mike Riley PWD 6 years and Roger Cornett HPD 1 year. Attached: PW Director re: Proposed changes to water and sewer fee schedule. Minutes from Hospital Service Area Board and Operating Board re: support for proposed trail easement. Public Notice: Trail Grant Application / Fairview to Reber Trail. Governor Murkowski re: Hickory and Roanoke Island. Senator Stevens re: Hickory and Roanoke Island. Exxon Valdez Oil Spill Trustee Council / Letter and Information regarding community projects. PERS Information Update from Personnel Director. Kenai Peninsula Borough/ Press Release/Unemployment Statistics.

There were comments about the Intergovernmental Agreement (both City Councils must approve), Manley Building and contaminated soils, South Peninsula Hospital Trail, Trails Grant, Maintenance of KESA equipment, and about the maintenance of Emergency Equipment and garage/shop space.

B. Public Input on Question of the Week.

COMMITTEE REPORT

A. Public Arts Committee (Meets December 21,2006.)

B. Transportation Advisory Committee (October 24, 2006 Meeting Synopsis, Meets November 28, 2006)

There were no comments.

PENDING BUSINESS

A. City Advocation Campaign, agenda addition, Beth Wythe. Letter to go to the Homer Tribune and Homer News.

WYTHE/NOVAK - MOVED TO BRING THE PUBLIC EDUCATION CAMPAIGN TO THE FLOOR FOR DISCUSSION PURPOSES. (Intent is for the letter to be approved to forward to news media, etc.)

Discussion: Council has talked about this for a while. At the last meeting the Council approved a proposed list of items to move forward with that. December 6th, Coffee Table at 9 a.m. Let KBBI's Mike Mason know who can make it.

"The City" your Municipal Corporation

"The City" is a community of people living together. As a resident of this community receiving services and paying taxes you are a shareholder. In effect, "The City" is a "Municipal Corporation" formed to manage the finances of community government. The policies and priorities of this Corporation are determined by a Board of Directors, the City Council, your elected community representatives. The intent of the Corporation is to provide services, and a responsibility of the elected Board is to keep the Corporation financially solvent.

Taxes and service fees provide the funds required to provide the essential services which can not economically or practically be provided for on an individual basis (i.e., water & sewer infrastructure, road construction and maintenance, fire protection services, police protection services, and the administration required to hold it all together.)

As share holders in the "Municipal Corporation" we have the responsibility of funding the construction and maintenance of community buildings and infrastructure. We elect officials who we believe will promote our interests, and we entrust them to make decisions which best meet the needs of the whole. The "Municipal Corporation" is a business entity that belongs to the community. When the community wants a new library, animal shelter, City Hall, Town Center, etc., the Corporation is charged with figuring out how to make it happen.

The "Municipal Corporation" requires a secure financial foundation to qualify for the major funding which is required for development. To qualify for Federal funds, The "Municipal Corporation" is required to provide "matching" funds which provide a good-faith financial commitment to operate and maintain the project after it is completed.

When grant and loan revenue sources are used to construct these projects they do not include funds for the operation and maintenance after they are completed. The operation and maintenance expenses, which continue far beyond the construction of the facility, are the responsibility of "The City ".

The "Municipal Corporation" is just a management tool which provides a mechanism for collecting the funds required to maintain the infrastructure constructed with the supporting vote of the community. Keep in mind that the only revenue sources available to the "Municipal Corporation" are taxes and service fees.

In addition to the expenses incurred by NEW projects, there remain the expenses resulting from the OLD projects. Additionally, there are the general "cost of doing business" expenses like insurance, staffing, and equipment. Just as the cost of maintaining a home is increasing, the costs of maintaining the assets of "The City" are increasing. Just as your fuel prices, insurance premiums and other bills are going up, so are those of "The City" and those employed by "The City".

When you, shareholders in the community, require additional income to maintain your personal lifestyle, it should not be surprising that the "Municipal Corporation" would also need additional income to maintain services. When the value of properties increases, property taxes can be kept at the same level and still produce an increased natural revenue stream to assist in paying the raising expenses incurred with increasing costs and a growing infrastructure. Generally speaking, when the value of property is going up, there tends to also be growth taking place, which in itself adds additional service needs and strain on the infrastructure.

To ensure the maintenance of the facilities and programs enjoyed by the community, it is the responsibility of the Council to exercise forward thinking and develop the appropriate revenue streams and reserve funds to meet the needs of "The City" today and long into the future. The success of the "Municipal Corporation" depends on the trust of shareholders in the ability of the elected management (Council) to adequately plan; collect and invest funds to meet the immediate maintenance requirements; and obtain the ultimate future vision for our community.

So, the next time you say or think "The City ought to . . . ", look in the mirror and say "we ought to …… ".

The Council will be hosting an open forum in the near future to provide further information on the current financial position of your "Municipal Corporation" and to address questions you may have.

GET INFORMED AND GET INVOLVED

IT IS YOUR FUTURE!

VOTE: (approval of the letter to be forwarded to news media, etc.) YES: NON OBJECTION UNANIMOUS CONSENT.

Motion carried.

NEW BUSINESS

A. Memorandum 06-195, from Councilmember Wythe, Re: Making the Comprehensive Economic Development Strategy (CEDS previously known as OEDP) part of the Comprehensive Plan. PAGE 669

Recommendation: Discuss the concept of including the OEDP/CEDS in the Comprehensive Plan and if agree I will come back with an Ordinance to that end.

WYTHE/STARK - SO MOVED TO APPROVE THE RECOMMENDATION OF MEMORANDUM 06-195.

Councilmember Wythe advised that the Economic Development Commission is getting their feet on the ground, getting a feel for the scope and intent of their Commission. As a starting point they are looking at updating the OEDP/CEDS and would like to see the Council accept that information and get Council buy in. The Commission concluded that if this plan were incorporated into the Comprehensive Plan as other reports/plans of the same nature, it would keep it a little more in the view and mind of the Council.

There were no other comments.

VOTE: YES: NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

B. Memorandum 06-184, for Mayor and Council, Re: Adoption of the Decision on Code of Ethics Complaints Filed Against Councilmember Doug Stark. Postponed by Mayoral Declaration on November 20, 2006 due to lack of quorum participants.

Mayor Hornaday excused Councilmembers Novak and Stark from the Council table at 8:24 p.m.

Recommendation: Adopt the Decision with Exhibits A and B.

WYTHE/ROBERTS - SO MOVED TO APPROVE THE RECOMMENDATION OF MEMORANDUM 06-184. (Adopts the decision with Exhibits A and B.)

There was no discussion.

VOTE: YES: WYTHE, SHADLE, HEIMBUCH, ROBERTS.

Motion carried.

Mayor Hornaday invited Councilmembers Novak and Stark back to the Table at 8:25 p.m.

C. Consent Agenda Item P. Memorandum 06-193, from Shadle, Re: Investigation of Truthfulness of Stark Allegations. Recommend approval.

WYTHE/SHADLE - SO MOVED FOR THE APPROVAL OF THE RECOMMENDATION IN MEMORANDUM 06-193.

Comment pro and con as to whether or not this investigation is needed.

Mayor Hornaday excused Councilmembers Novak and Stark from the Council table at 8:27 p.m.

Councilmember Stark objected.

Council did not overrule, or wish to overrule the Mayor's request that the two Councilmembers leave the table

VOTE: YES: SHADLE.

NO: ROBERTS, WYTHE, HEIMBUCH.

Motion failed.

Mayor Hornaday invited Councilmembers Novak and Stark back to the Table. 8:28 p.m.

RESOLUTIONS

A. Resolution 06-147, Of the City Council of Homer, Alaska Repealing Resolution 06-122(A) and Setting the Property Tax Rate (Mill Rate) for Fiscal Year 2007 at 4.00 Mills. Shadle. McLayPostponed on October 9, 2006 to provide for adequate time for the budget.

Main motion as postponed is on the floor: WYTHE/SHADLE - SO MOVED, FOR THE ADOPTION OF RESOLUTION 06-147 BY READING OF TITLE ONLY.

There was no discussion.

NOVAK/WYTHE - MOVED TO TABLE.

No discussion on a motion to table.

VOTE: (motion to table) YES: ROBERTS, WYTHE, SHADLE, STARK, NOVAK.

NO: HEIMBUCH.

Motion carried.

B. Resolution 06-154, Of the Homer City Council Condemning Councilmember Doug Stark for Unethical Behavior. Postponed by Mayoral Declaration on November 20, 2006 due to lack of quorum participants.

Mayor Hornaday excused Councilmembers Novak and Stark from the Council table at 8:29 p.m.

WYTHE/ROBERTS - SO MOVED FOR THE ADOPTION OF RESOLUTION 06-154 BY READING OF TITLE ONLY.

There was no discussion.

VOTE: YES: HEIMBUCH, ROBERTS, WYTHE, SHADLE.

Motion carried.

Mayor Hornaday invited Councilmembers Novak and Stark back to the table at 8:30 p.m.



C. Consent Agenda Item G. Resolution 06-141, Of the Homer City Council Establishing a Global Warming Task Force to Advise the City on Methods to Plan for and Mitigate the Impacts of Climate Change and Reduce the Emission of Greenhouse Gases within the City. Mayor. Recommend adoption.

NOVAK/WYTHE - MOVED TO ADOPT RESOLUTION 06-141 BY READING OF TITLE.

Brief comment leading into the amendment.

NOVAK/WYTHE - THIS IS A MOTION TO AMEND THE FIRST AMENDMENT IS IN THE TITLE AT THE VERY END OF THE TITLE TO DELETE "WITHIN THE CITY " AN PUT A PERIOD AFTER GASES; AND THEN THE SECOND AMENDMENT IS TO ADD ANOTHER WHEREAS, AND IT WOULD BE NUMBER THE FOURTH WHEREAS, "WHEREAS, IT IS RECOGNIZED THAT ENVIRONMENTAL IMPACTS BEYOND THE CITY LIMITS WILL EFFECT HOMER'S ENVIRONMENT;" AND THE FINAL PART WOULD BE THE THIRD BE IT FURTHER RESOLVED TO SAY , THE TASK FORCE SHALL CONSIDER LARGE SCALE REGIONAL IMPACTS TO GREEN HOUSE GASES WITHIN THE BOROUGH AND SHALL PROVIDE A FINAL REPORT WITH RECOMMENDATIONS TO THE CITY COUNCIL NO LATER THAN DECEMBER 30, 2007; AND; AND ADD A FOURTH DELETION IN THE PREVIOUS BE IT FURTHER RESOLVED, WHICH IS NUMBER TWO, BE IT FURTHER RESOLVED THE LAST PORTION WOULD BE DELETED AND THAT PART TO BE DELETED WOULD BE, "PROVIDE A FINAL REPORT WITH SUCH RECOMMENDATION TO THE CITY COUNCIL NO LATER THAN DECEMBER 30, 2007, THAT WAS MOVED TO THE AMENDMENT I ADDED AS THE THIRD BE IT FURTHER RESOLVED.

Discussion: The issue of greenhouse gases goes beyond the City limits. Can't stop the thinking at the City limits. Need the concurrence of the City Council of Kachemak.

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

Motion carried.

Further discussion, about costs to the City for the Task Force. Does this have to be under the umbrella of the City. This was a strong recommendation that came out of the Conference of Mayors. The main cost would be staff time, probably overtime budget. Could this be coordinated under the Comprehensive Plan. Other Alaskan towns are implementing this type of a Task Force. Discussion about dovetailing this into the Comprehensive Plan. This is an area wide thing. Needs to be done jointly with all of the Cities in the southern Peninsula.

HEIMBUCH/STARK - I'D LIKE TO MOVE FOR POSTPONEMENT PENDING SOME KIND OF ASSESSMENT OF COSTS ON THE ADMIN SIDE.

There was no discussion.

VOTE: (postponement) YES: WYTHE, SHADLE, STARK, NOVAK, HEIMBUCH, ROBERTS.

Motion carried.

D. Consent Agenda Item L. Resolution 06-159, Of the City Council of the City of Homer, Alaska Authorizing the Execution and Delivery of a Lease-Purchase Agreement and Related Documents with Respect to the Lease Purchase of One Track Excavator and Two Rubber Tire Front End Loaders; Authorizing the Executing and Delivery of Documents Required in Connection Therewith; and Authorizing the Taking of all Other Actions Necessary to the Consummation of the Transactions Contemplated by this Resolution. City Manager. Recommend adoption.

HEIMBUCH/WYTHE - I MOVE FOR THE ADOPTION OF RESOLUTION 06-159 BY READING OF TITLE.

In response to Council the City Manager advised that this was approved in the 2006 Budget and this resolution satisfies the technical aspect of the agreement, a house keeping sort of thing. He affirmed that if there had been more money in the depreciation reserves the loan would not have been necessary. Did not want to wipe out the fleet reserves in entirety. If the money can be found, extra money, he would be open to the discussion about paying this off, adding that it would save some interest cost.

Council discussion ensued, pro and con to lease purchase.

Finance Director responded to some questions regarding prepayment, pay offs etc. Confirmed that the lease purchase may be paid off in the whole, but no balloon payments.

VOTE: YES: ROBERTS, WYTHE, STARK, NOVAK, HEIMBUCH.

NO: SHADLE.

Motion carried.

Mayor Hornaday allowed Councilmember Stark to make a comment after the vote, that he would like the Manager and Finance Director to make a note of this so that if the City does come into some money in about six months that they will have the ability, as soon as Council approves it, to pay it off.

There were no comments or action from the Council regarding the statement.

COMMENTS OF THE AUDIENCE

Audience comments upon any matter.

Frank Griswold commented on proposed Ordinance 06-58, Beluga Lake Lodge rezone, that the Public Works Director always seems to be here to answer Public Works questions and that he wonders why the City Planner is not here to answer zoning questions, especially when these were raised in writing well in advance of the meeting. He stated that he is very uneasy accepting here say testimony from Ray Kranich about what the City Attorney may or may not have relayed to the City Planner. He stated that split lot zoning was required as part of the 1983 CUP for this lot. If the split zoning is voided by Ordinance 06-58, how can the CUP remain in effect? The whole purpose for the CUP and the split zoned lot was to avoid rezoning it to GC1. There is no valid public purpose served by rezoning to GC1, and the lot is very small. Being adjacent to another zoning district does not preclude a charge of spot zoning. If this Council decides that it does, they will be flooded with requests for private interest at infinitum. Regarding Ordinance 06-63, Marine Commercial Regulations, Mr. Griswold stated that it makes no sense to amend Marine Commercial Regulations without considering the Marine Industrial Regulations as well, especially since Ordinance 06-63 contemplates making all of the Marine Industrial conditional uses allowable as conditional uses in the Marine Commercial District as well. If this is headed toward one Marine Business District as contemplated in the 1999 Comprehensive Plan Update there is no point in amending the two existing Marine Districts separately. He stated that the Council does need to obtain a legal opinion regarding the legality of zoning itinerant merchants out of business and rezoning to abate zoning violations. Further more, that the Council needs an opinion regarding the propriety of a Port and Harbor Commissioner participating in an Ordinance designed to legalize his illegal Bed and Breakfast. He thanked the Mayor and Council.

Carey Meyer, lives in the City, stated that he would like to try and speak for the employees that work for the City. That as a group, the employees generally resist the idea of putting their two cents worth in during the budget process. Even though sometimes the employees feel that there is noone looking out for their best interest. The employees go into the budget development process with certain pre conceived priorities, this year, for example: providing for increased energy costs, funding PERS 100%, increasing depreciation reserves, increasing City operating reserves, holding water and sewer and harbor rates at their current levels, finding money for Community Schools. Hiring new staff, providing for fair Cost of Living increases, putting in place the parity study recommendations, these things seem to sometimes end up being the budget busters. The reason the rates have to go up or why property taxes can't go down. If the Council's employees are not fully compensated, fairly compensated the City cannot retain the quality of employees that it has or attract the new talent that will be needed. The Council has many deserving projects and programs that they have to consider. He expressed his belief that taking care of Council's employees is the best bang for their buck. He thanked the Mayor and Council.

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 noted that the City is in the middle of the budget, that it is never any fun, that he was hoping that it would be kind of fun this year, but it isn't and that there are going to be a lot of people unhappy, but that is the way that it is.

COMMENTS OF THE CITY COUNCIL

Mayor Pro Tempore Novak thanked Public Works Director Meyer for stepping forward and speaking for the employees and for bringing that to the forefront. The employees are the people that make this machine run here, the City, and Council does need to consider them. There are some issues on the table that address employees and certainly this is as important as the rest of the issues. He encouraged the Council to keep that in mind, adding that Council knows who is out there getting the work done.

Councilmember Shadle had no comment.

Councilmember Wythe thanked the Public Works Director for speaking on the behalf of the City employees. She asked the Council, as Council is putting forth proposed changes and adjustments to the budget, to give some serious consideration to hiring a consultant to come in and do a full review of the City's compensation plan and see if they can't help develop a compensation plan format that will help the City move toward a parity with external compensation. The City is not competing, necessarily, with other cities where there are employees with specialized services, the City is competing with the private industry, which makes competition a little stiffer. There is a need to find a way to move from 8% to 25% below market value for many of the positions to a market value system that will allow City employees to be compensated fairly and adequately. She advised that she will be putting forth a recommendation to have an organization come in and do a proposed review study to get on track with a compensation plan that will provide for that. Other things need to be looked at, there are a lot of short falls that fall behind, as the Public Works Director said; electric bills, fuel and heating bills. Do need to develop and/or find a mechanism, that this Council is willing to commit to, that will move the City forward in a large variety of areas wherein the City is currently under funded and inappropriately funded. If Council does not make a plan and does not start moving towards reaching those goals this City will never reach those goals and will fall short. Predicted that within five to ten years the City will be in default if Council does not find a way to stop the problems that exist, right now, and address them.

Councilmember Stark, in response to Councilmember Wythe's comments for which he agrees, added that anybody that has followed his comments in the past on employee salaries knows that he is one of their greatest supporters and knows that there are other supporter on the Council. The City Manager said a year ago at this time that the City was going to have a parity study, so that is involved in what Councilmember Wythe is talking about. He said that he looks forward to that. He expressed his thought that there were some factual errors in the decisions resolution on the internal court case, last month. He stated that he is still somewhat puzzled that when he apologized and all knew that the Resolution was unenforceable, the Ethics Resolution, that the City felt it had to spend all of this time and money to arrive at a predetermined conclusion. One always prefers to not have his friends and peers adopt a negative decision. Considering all of the people in Homer that are homeless in this freezing weather, who don't have enough to eat at this Christmas Season, who don't have jobs and the Community just lost 100 jobs when Fred Meyer pulled out due to the cost increase caused by the City taking three and one half years to make a decision; that his personal situation, in contrast, is somewhat insignificant. He stated that his desire remains the same as when he took office four years ago, to help Homer move forward in a sustainable way.

Councilmember Heimbuch reiterated his support for what the Public Works Director said and that he fully intends to bring a changed resolution for the budget to up the full amount of the parity study to 3%, that will be one of the things Council will definitely vote on that will divide this Council. A very strong case could be made that the projections for sales tax revenues are overly optimistic aby about $250,000.00. There are only a couple of things on the table that Council has any ability to do anything about: Sewer and Water, can increase rates and, no doubt, that is probably where the Council is going to head. Two very popular things that cannot be avoided - employees at the Library and Community Schools. There really is no other elasticity in the budget right now. Council cannot avoid this. These are things that Council likes and there is no methodology that Council can adopt that will give the Council a good way to determine what those priorities should be for the City to maintain some time of fiscal stability. He stated that he does not look forward to it, but that the Council is going to have to go through it.

Councilmember Roberts had no comment.

ADJOURNMENT

There being no further business to come before the Council, Mayor Hornaday adjourned the meeting at 8:55 p.m. The next Regular Meeting is scheduled for Monday, December 11, 2006 at 7 p.m. and the next Committee of the Whole is scheduled for Monday, December 11, 2006 at 4 p.m. Worksession at 5:30 and Special Meeting at 7 p.m. Scheduled for Monday, December 4, 2006. All meetings scheduled to be held in the Homer City Hall Cowles Council Chambers located at 491 E. Pioneer Avenue, Homer, Alaska.







___________________________________

MARY L. CALHOUN, CMC, CITY CLERK



Approved: __________________________