Session 05-34, 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 (telephonically), STARK, WYTHE.

STAFF: CITY CLERK CALHOUN

CITY MANAGER WREDE

CHIEF OF POLICE ROBL

ACTING FINANCE DIRECTOR VAUGHN

PUBLIC WORKS DIRECTOR MEYER

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

Council met as a Committee of the Whole from 4:00 to 5:29 p.m. Regarding 2006 Budget, Alaska Eagle Watch presentation, the Regular Agenda items particularly Resolution 05-113. Homer City Hall Cowles Council Chambers.

Council conducted an Emergency Meeting from 5:35 p.m. to 6:34.5 p.m. For the purpose of conducting an Executive Session on Ocean Drive Loop Bluff Erosion Control Project Litigation, aka, Seawall - Settlement Offer. 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 changes: Original request was to go under Consent Agenda and Request by Councilmember Stark to add, under Resolutions, Resolution 05-127, Of the City Council if the City of Homer, Alaska Urging the Kenai Peninsula Borough to Proceed forthwith with the Design, Bidding and Construction of South Peninsula Hospital Expansion Project. Public Hearing: Written public testimony received regarding the budget. Ordinance 05-39(S), although not listed on the agenda is in the packet beginning on page 173.

PUBLIC COMMENTS UPON MATTERS ALREADY ON THE AGENDA

Public comments upon matters already on the agenda except Visitors, heather Beggs, Pratt Museum Annual Report, Arctic Winter Games, Cathy Brandal and Tim Dillon, Chamber of Commerce, Derotha Ferraro, Budget and Contract; and Public Hearing Matters: Ordinance 05-59, W. Noview Budget, Ordinance 05-60, Council vacancy process, Ordinance 05-61, Amending the Account Numbers in Ordinance 05-31, Ordinance 05-62, 2006 Budget and accompanying Resolutions 05-121 through 05-125; and Ordinance 05-63, 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.

David Green, Chair of the South Peninsula Hospital (SPH) Service Area Board, expressed support for Resolution 05-127, introduced by Councilmember Stark. He advised that the Planning Committee is composed of members of both boards and hospital administration. The Committee met and approved a plan that met the budget constraints and took pieces from the plans that had been put forth by the architect and maintained the commitment to the public for the promised priority items when support was requested for the bond issue: An expanded ER, imagining space for growth and capability of imaging, and modifications to the admittance area to meet privacy requirements and regulations. Accommodations were to build a shelled in space for the new patient wing that would add two to four rooms. That total cost remained within the budget limitations. The rooms would be added in later as done by many hospitals in this state in trying to meet their obligations under limited resources. There still existed some cost overrun capability. Although communicated to the administration the new administration did not have time to review that and comment on that at the time of the meeting on November 21st. This project was put forward and approved by the Board of Directors and by the Service Area Board and forwarded to the administration, so the plan had complete approval by all the interested stake holders involved with the hospital's administration. It met the overall concept that had been presented based on national standards by an earlier consultant. He emphasized that they did not grow the project, as has been alluded to, that the expansion of the project was accepted on the face of a statement by the architect that they could provide more for the same amount of money, allowing for lower long term operating costs, one of the motivating factors for acceptance. He advised the Council that they will hear other specific items alluded to by people who comment after him. He stated that the summary, provided to the Council, indicates that both boards have been responsive and prudent, fiscally, in meeting the obligations that they committed to the borough voters and meeting those needs of the hospital and service area. He thanked the Council for their time.

Barbara Howard, member of the Service Area Board, voiced support of Resolution 05-127, dealing with immediate and serious matters of the hospital expansion calling for Council's support. Earlier this year Council was very instrumental in helping to pave the way with some land issues. She thanked the Council, City Manager and City Attorney for those efforts. She stated that now there are funding and cost over ride hurdles that must be dealt with, almost yesterday. She told the Council that their help is needed in presenting to the Borough the message that "we" want this expansion and that "we'"do not want to wait two to three more years. The voters of this hospital service area voted in 2003 to tax themselves in order to have the health care services that they want and need. Today those needs are even more identifiable and Council's support for this Resolution is so timely and influential. She thanked the Council and wished them a good evening.

Jackie Dentz, Service Area Boardmember, stated that it is a pleasure to come and speak to the Council and that she has been on the service area board for the past 5 years and was newly reelected for the next three and has been on the Hospital Strategic Planning Committee since its inception. She noted that they have been through a sea saw effect with the architects,over plans from the visual concepts and from the Zillon and Associates who had told them that they could get more bang for their buck and who led them down a dark path, not staying within the budget constraints. In August 2005, she advised, they had a meeting with the Kenai Peninsula Borough Project Manager, Bill Dunn, the Service Area Board and the architects and that they were told that they must get on with a plan that is going to work since time was of the essence. She emphasized that at no time were they advised that there was a drop dead date, but that the plans were needed as soon as possible. She reported that they were able to furnish a new set of plans to place before the architects at the end of September, therefore, being very timely. She stated that they heard nothing from the Borough, despite many emails and phone calls, as to whether or not this was getting through to the architects. She reported that last Monday they were told by the Borough Mayor that he had a problem with the bonding, that there was a drop dead date, that the bonds needed to be defused and that they needed to look at revamping the hospital at another time. She stated that her point is that, realizing that they are over budget, perhaps it is best to get these plans done immediately by the architectural firm and to deal with the legal matters latter. She advised that her other point is that the plans do include everything that the voters were promised, it does make a workable hospital and within budget. She voiced her opinion that this needs to move forward, even though there is some shelled in space, because the more the project is delayed the more the construction costs go up. It is an accepted practice to shell in hospitals, it happened at Providence and to fill in those areas as funds become available. At this time it is not fair to the voters who supported this project or to the medical staff at the hospital or to the employees that have to work under the current conditions. She stated that she feels these individuals should have a decent working arena in which to stage their expertise and compassion in serving the fine folks of the Southern Peninsula. She thanked the Council for the Resolution and voiced her hope that it would help.

Charlie Franz, resident and Hospital Administrator, voiced support for Resolution 05-127, in support of the construction of the hospital project. He voiced his opinion that the Service Area Boardmembers have spoken very articulately. He noted that this project was needed several years ago, it is needed now, it does not need to be delayed, and that delays will result in additional project costs as costs of materials and labor increase. Hospital customers, patients and community members need to be provided with a good place to receive care, there needs to be a good working environment for staff and a more functional environment for the entire organization. He thanked the Council for their support.

Hal Smith, Medical Director of the SPH Emergency Department, thanked the Council ahead of time for their, anticipated, strong support of the Resolution supporting the hospital expansion. He voiced agreement with what has already been said. He commented that the current Emergency Room (ER) was built with the hospital in the mid 70s and it is still being using. About fifteen years ago they appropriated a couple more small rooms to accommodate two more patients so there is a emergency patient capacity of four to be treated at one time. It is obvious to anyone who has been there that more space is needed for patients, more space for privacy, more space for waiting room area and to just treat the patients better. More space is needed for technology and the equipment that is currently available and needed in a modern ER. He advised the also has been part of the planning committee and construction committee since their inception, has been around since the beginning and is aware of the current plans to have the scaled down version, which he said he totally agrees with, and that will meet the immediate needs of the hospital. He voiced sincere hope that the Council will support this Resolution and get it up to the Borough, who has the power to make or break this. He expressed appreciation of Council's support.

Mayor Hornaday thanked Dr. Smith and the SPH staff for saving his son ten years ago.

Jody Johnson, SPH Laboratory Director, reported that she has been at SPH for seven years and also on the Planning Committee since its inception. She thanked the Mayor and Council for allowing her to speak tonight. She said, as a staff member, that they do need this expansion, disparately, most importantly for the ER. She noted the hard work of the Planning Committee, that they came up with some creative ideas to make this scaled down plan work and still meet the needs. She urged the Council to support this Resolution.

Larry Dallas, Support Services Director at SPH, said that he is the one in charge of trying to make enough space for patient care. He advised that they have run out of closets, bathrooms and other areas to convert. Space is critical. Waiting another couple of years is going to make the whole system unworkable. Technology is changing. Room for equipment is very necessary. He urged the Council to support this matter, voicing a belief that there is a plan out there that can move forward. This may take the Borough out of its comfort zone, but it can be put out to bid, contract signed, materials purchased and still come within the Borough bond deadline. He thanked the Council for their time.

Sue Mihora-Scholl, ER Coordinator, stated that she has to make the ER function at all times. She voiced an understanding of the Borough concern with tax liability issues regarding the bonds and that she feels that the Borough really laid a bomb on them last week. She said that she finds it difficult to understand how the Borough cannot make the hospital expansion highest priority and get substantial work done by the fall of 2006. She commented on a viable community, which includes certain pillars; education, schools, concept of town center, City services, health access and quality of care. She suggested that maybe the new library should not be built, because the old one is minimally adequate so why isn't that sufficient. She voiced her opinion that the majority of people don't believe that any more and, like wise, that this community wants quality care for their health concerns, that they don't want a facility that is outdated and is going to be increasingly problematic to deliver other than minimally adequate care in two or three years if the Borough puts off building. She commented that she mentioned the other night all the reasons that the ER, in her view, needs to be rebuilt:

Accommodating higher volume. Privacy issues. Over crowding of rooms. Safety issues for staff. Improved facilities are needed for special populations - psychiatric, migraine headache patient. Room is needed for resource books and materials within the department. A triage room is needed. Relocation of ER closer to the entrance of the hospital.

All of this is in the plans given to the Borough the last time the Planning Committee met. She stated that she would rather see this project go through now. She voiced her opinion that if there are a few million dollars that are needed to complete the project down the line, it would be more palatable to the community to vote for a smaller amount of funding later, than to loose what we have now and have to get the whole project off the ground again. She expressed her hope that the City Council can support this Resolution and help this community get the health facility that it needs and deserves now.

Scott Wheat, NAMI Homer Circle of Wings, stated that NAMI's focus is on mental health aspects of the hospital. He informed the Council that it is a real benefit that Homer has Dr. Burgess at the Mental Health Center and on the hospital staff. Through the years Dr. Burgess has worked with NAMI to help keep the Homer citizens here in the community and this has become more dificult as space has become progressively tighter, as the previous speaker mentioned. There really is no where to put someone with an acute headache. There is really no place to put someone having an mental health crisis. Unfortunately these individuals can end up being transported, sometimes in hand cuffs, out of the community. He relayed that NAMI does support the expansion. Shelling in is very common, adding that Fairbanks Mental Health did that as did Providence and perhaps SPH may even have done so in the past. He emphasized that space is needed for the people they are concerned with and, of course, all of the citizens. He thanked the Council.

Frank Griswold, City resident, commented on Ordinance 05-17, the appeal procedures. In 1999 Homer's Appeals procedures were comprehensively revised by Ordinance 99-8(A). Many important safe guards were put into place by that enactment, that can now be removed or neutralized by Ordinance 05-17. Restricting the public's right to appeal is not the only slippery slope posed by 05-17. At line 494 the first sentence of HCC 21.68.100 (a) is being deleted, "Planning Commission and Board of Adjustment members shall be impartial in all appeal matters both in fact and in appearance." He inquired why the Council would want to delete this? Doesn't the City of Homer care about impartiality and/or the appearance of propriety any more? At page 158 of the packet the Planning Commission asks why HCC 21.68.090(2) is being removed. Mr. Griswold said that he too would like to know. He stated that this provision allows a Commissioner or Board member to abstain from participation for reasons other than a financial conflict of interest, such as bias or ex parte communication. If 21.68.090(2) had not been in place Board member Beth Wythe would not have been able to abstain from participation in the Blackwell Appeal, where she declared a non financial conflict of interest. At line 539, Ordinance 05-17, provides for disqualification of a Board or Commission member involved in ex parte communication and without 21.68.090(2) such disqualification would not be permitted because line 455 states that all Commission or Board members shall participate in the deliberation and voting process except those disqualified due to substantial financial conflict of interest. Whereas clause number six states: "Other provisions of Chapter 21.68 of the Homer zoning code relating to conflicts of interest and ex parte contacts should also be amended." He stated that it does not say why this is necessary. Ordinance 05-17 essentially eliminates all consequences for violating the conflict of interest rules. In 1999 the Planning Commission and Council recognized that the participation of a Commissioner or Boardmember with a financial conflict of interest could influence the votes of others and even where a conflicted member's vote was not necessary for passage for enactment, invalidation was required. This is also consistent with HCC 1.12.030, which mandates, " A City Councilmember or Mayor with a conflict of interest regardless of whether excused from voting shall not be allowed to participate in discussion about the matter." Existing rules should not be watered down. At line 82 it states that acts and determinations of the Planning Director include acts and determinations of an administrative official or any staff member of the Planning Commission. Mr. Griswold asserted that this is confusing and inquired, why would the act of a Planning Director include an act of the City Manager, adding that the City of Homer has no Planning Director. 29.40.050(a) ⁽¹⁾ states in part, by Ordinance the assembly shall provide for an appeal from an administrative decision of a municipal employee, board or commission made in the enforcement, administration or application of a land use regulation adopted under this chapter. He asked the Council, why not just say municipal employee instead of Planning Director? 21.68.020 provides that only limited determinations can be appealed. He stated that appeals should not be limited to just the acts of determinations listed under 21.68.015, all land use decisions including enforcement decisions should be appealable. The deleted language of line 129 is preferable, it simply states that any action or determination taken under Chapter 21.28 through 21.70 may be appealed. He concluded by saying that Ordinance 05-17 is dishonest, oppressive and undemocratic and should be voted down lock, stock and barrel. The existing Code is far more ethical and much less confusing. He encouraged the Council to stick with existing Code. Good government is more important that expeditious government. He thanked the Council.

Christine Anderson, member of Homer community and employee at SPH the last nine years as a nurse and is currently the Director of Patient Care Services, noted that there has been a lot of emphasis on the ER. She encouraged everyone to remember the in patient services and needs. She pointed out that if the expansion does not move forward they will continue to have 4 rooms that hold 8 patients using two bathrooms. Currently the public access runs right through the ER area and to the patient unit, which leads to inadequate area for patient safety, public health and privacy issues. She asked for Council's continued support and to support this Resolution and thanked the Council for the opportunity to speak.

Robin Coffee, resident and nurse at SPH for over 17 years, echoed Christine Anderson's comments regarding patient care rooms and that the ER expansion is very much needed as is the acute care area so that patients are not sharing rooms and bathrooms such as the current 4 patients to one bathroo=. She emphasized the privacy issues. She commented that when the voters voted, a lot of people were under the impression that the expansion of the acute care area was included. She expressed appreciation of the Resolution and Council's consideration.

RECONSIDERATION

A. Memorandum 05-176, from City Clerk, Re: Novak notice of reconsideration on Resolution 05-113.

Recommendation: Recommend approval of the reconsideration.

HEIMBUCH/NOVAK - SO MOVED TO APPROVE THE RECOMMENDATION OF MEMORANDUM 05-176.

There was no discussion.

VOTE: YES: NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

Resolution 05-113 is back before the Council under Resolutions.

B. Memorandum 05-177, from City Clerk, Re: Heimbuch notice of reconsideration on Ordinance 05-58(S)(A).

Recommendation: Recommend approval of the reconsideration.

Councilmember McLay rose to a question of privilege that the Mayor quiet the disruptive discussion noises in the lobby.

Mayor Hornaday gaveled the individuals making the noise and requested that the discussion cease.

HEIMBUCH/NOVAK - SO MOVED TO APPROVE THE RECOMMENDATION OF MEMORANDUM 05-177.

Councilmember Stark queried Councilmember Heimbuch as to his reason for reconsideration.

Councilmember Heimbuch stated that he did not have a lot of heart burn about the way this turned out two weeks ago, but he favors every opportunity for the Council to reach consensus. He advised that this reconsideration was for the benefit of Councilmember Wythe and to bring up some other issues about this compensation later today. He voiced his hope that this is nothing more than a house cleaning measure and that they need to find something that is quickly agreeable to everyone to make this measure more palatable.

VOTE: YES: NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

Ordinance 05-58(S)(A) is back before the Council under Ordinances.

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 November 14, 2005 Special and Regular Meeting. City Clerk. Recommend approval.

B. Resolution 05-75(A), Recommend that Council ratify additional amendment made correlating to Council's November 14th amendment.

C. Resolution 05-119, Of the City Council of Homer, Alaska Adding the Heath Street Extension to the State and Federal Capital Project Lists for Fiscal Year 2007. Novak. Recommend adoption.

D. Memorandum 05-178, from City Clerk, Re: Liquor License Renewal for Alibi and Transfer of ownership for the Alibi. Recommend Council voice approval and non objection.

E. If added under agenda approval: Resolution 05-127, Of the City Council if the City of Homer, Alaska Urging the Kenai Peninsula Borough to Proceed forthwith with the Design, Bidding and Construction of South Peninsula Hospital Expansion Project. Stark, Shadle, Heimbuch. Recommend adoption.

Resolution 05-127 was placed under Resolutions under Agenda Approval.

WYTHE/NOVAK - SO MOVE TO ADOPT AND/OR APPROVE THE RECOMMENDATIONS OF THE CONSENT AGENDA AS READ.

Councilmember McLay clarified that Item E. was placed under Resolutions under Agenda Approval.

It was agreed to add this amendment change, that Resolution 05-127 is placed under Resolutions.

There was no objection, Mayor Hornaday confirmed that Councilmember Shadle (telephonically) has no objection.

VOTE: YES: NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

VISITORS

A. Heather Beggs, Pratt Museum Annual Report. (5 minutes)

Mayor Hornaday introduced Heather Beggs and noted that the Pratt Museum is award winining.

Heather Beggs, Museum Director, passed out a white paper, 2006 Case for Funding from City of Homer and noted that the Pratt Museum wins National acclaim once again and will be receiving another award to be announced soon. She asked for continue financial support at no lower than last year's level, $80,000.00. Points were:

• Consistent with the City's agreement with the Pratt Museum(PM) 02/27/67, Resolutions 82-18, 84-29 and 02-49 and the 1979 referendum - PM uses City funds to maintain a museum for the public by applying funds to collections, facilities, maintenance, and administrative expenses.

• Operations are funded through earned revenue from admissions, membership and fund raising events; individual and business contributions; state and federal grants; and the annual City contribution.

• PM operates a world class community museum at an incredible bargain to the City.

• Libraries and museums are traditionally city funded and operated entities across the Country and the State.

• Necessary service maintaining City archives, documents and objects.

• Even after responsible fiscal decisions, restructuring, and trimming the budget to the bone over the last four years, the PM faces a serious threat to continued operation if the City funding decreases.

• The City of Homer provides far less to the PM than most local governments provide for their museums.

• PM employs five full time staff and 12 to 20 part time staff.

• PM is a smart business, consistently receiving 55% of its general operating revenue and support from earned income.

• PM runs a tight business and provides an immense amount of free services to the community.

• PM has a positive economic impact on Homer. Increases tourism, collaborates with businesses and area non profits. Incentive to businesses. Educational programs subsidize the educational budgets of the KPB School District.

• Wise investment for the City.

• Preservation of community's heritage.

B. Arctic Winter Games, Cathy Brandal and Tim Dillon (60 seconds requested, Mayor may give 5 minutes.)

No one was present due to an emergency Arctic Winter Games Board meeting.

C. Chamber of Commerce, Derotha Ferraro, Budget and Contract. (5 minutes)

Derotha Ferraro, Executive Director of the Chamber of Commerce (CoC) asked for continued financial support and encouraged an increase. As she distributed tourism magazines, brochure and a white paper on the generic marketing, she played a cassette of Hobo Jim's Homer Jingle. She apprized the Council of major functions and activities of the CoC on behalf of the City and local businesses and included fiscal impact information:

• Booths at the Great Alaskan Sportsman, Fairbanks Outdoor and Winter Recreation Shows.

• Convention Attendance: KPTMC, AK Travel Industry Association Convention, Cruise Ship and AK State Chamber Convention.

• Display and Radio Ads.

• Travel Writers/FAM Trips

• Other Promotions: Brochures, Website, Card Racks, Promotion Assistance, Visitor guide.

• Provides services the City does not have the resources to provide.

• Visitor Information services.

She provided information on the history of City funding. She responded to Council inquiry that the CoC is a member of the national and state Chambers, however, does not get involved with their politics.

Non profits not listed will get to speak first under the budget public hearing.

ANNOUNCEMENTS/PRESENTATIONS/BOROUGH REPORT/COMMISSION REPORTS

A. Mayor's AML Report.

B. Councilmember Stark's Travel Report, AML and RDC.

C. Councilmember Shadle's Travel Report, AML

D. Councilmember McLay's Travel Report, AML

There were no comments.

PUBLIC HEARING(S)

A. 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. (First Reading November 14, 2005, Public Hearing and Second Reading November 28, 2005.)

There was no public testimony.

WYTHE/McLAY - MOVED FOR ADOPTION OF ORDINANCE 05-59 BY READING OF TITLE ONLY.

There was no discussion.

VOTE: YES: NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

B. 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. (First Reading November 14, 2005, Public Hearing and Second Reading November 28, 2005.)

There was no public testimony.

HEIMBUCH/STARK - SO MOVE TO ADOPT ORDINANCE 05-60 BY READING OF TITLE ONLY FOR SECOND AND FINAL READING.

Councilmember Heimbuch stated that this amendment clarifies that quorum voting is not required.

VOTE: YES: NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

C. 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. (First Reading November 14, 2005, Public Hearing and Second Reading November 28, 2005.)

There was no public testimony.

WYTHE/NOVAK - MOVED FOR THE ADOPTION OF ORDINANCE 05-61 BY READING OF TITLE ONLY FOR SECOND AND FINAL READING.

There was no discussion.

VOTE: YES: NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

D. 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.)

PUBLIC TESTIMONY ONLY and including testimony on the budget Resolutions 05-121--05-125.

Non profit testimony first, excluding those who addressed the Council under Visitors.

Joy Steward, Director of the Homer Foundation and lives outside the City limits, spoke as an advocate for the non profit community. The City of Homer has made an allocation, each budget cycle for the past four years, to the Homer Foundation that has provided a grants process to distribute those funds to the local non profits. None of the money stays with the Homer Foundation. 100% of the allocation for distribution is given out to those organizations. The Homer Foundation manages a separate allocation for the City of Homer's Endowment Fund, the earnings of which are added to the allocation which is distributed to the non profits. The service provided to the City of Homer is management of funds and the grants process. She commented about an article that was shared with her that starts out that often times discussing allocations to non profits seems out of proportion to the small percentage of the total governmental budget that the funding represents. She interjected that this is where the City funding to the Homer Foundation got started, that Council, at that time, was very frustrated with the amount of time that the non profit funding was taking and the City Manager, during that time, recommended zero funding for the non profits. She emphasized that the Homer Foundation stepped in and offered to assist to provide the service that would do the process. At that time there was not an application process for City funds. The Homer Foundation assisted the City in setting up that process and now administers that process for the City of Homer. She voiced her hope that the Council will continue to allocate funds through the Homer Foundation to Homer's vital non profit community. She emphasized that none of the funds stay with the Foundation, therefore, this is a partnership with the City that provides a service and, hopefully, saves time for the Council and their paid staff. Non profits struggle for every dollar for the programs and services provided to the City. Non profits do incredible things in this community that would be sorely missed for those who have made Homer, home, in part because of the arts and culture and use and educational opportunities that the non profits provide, which the City would provide if these were not provided. The key point in the non profit budget process is that the City funds are not providing 100% funding and are a small percentage of the funding, however, do show local support and provide leverage to gain other and outside funding. Local funding from the City government weighs heavily in obtaining other funding. She urged the Council to continue to support Homer's incredible non profit community. She offered the Homer Foundation services to work with the Council in providing that process and administration of the grants program for that process. In response to Mayoral inquiry she stated that the grants program is entitled the City of Homer Grants Program, this is stated on the grants application and in the guidelines it is stated that the funds come from an allocation by the City of Homer. She offered to send a letter to the City to show that the non profits know that the City of Homer is providing the funds, indirectly. She said that she will include this within her report to the City as well. She noted that the Homer Foundation has received, the last couple of years, a total of $40,000.00 from the City and $20,000.00 of which is the grant allocation and $20,000.00 of which has gone into the City's Endowment Fund. The earnings of the endowment fund exceeded $6,200.00 this year. She reported that the Homer Foundation has, on Committee recommendation, added some of their own unrestricted funds to fill any gaps.

Peg Coleman, City resident and Executive Director of South Peninsula Haven House - formerly South Peninsula Women's Services, advised that South Peninsula Haven House will be celebrating their 25th Anniversary this coming year and noted that there have been a lot of changes. In 2003 they opened a shelter. During that time they did not receive any increase in funding from the State and had the, unbelievable, increase in costs of running a 24/7 shelter that requires a 24/7 staff, whether the shelter is full or has only one person there. Part of what is now the shelter used to be rented office space so there is a decrease in earned income for the organization as well as a tremendous increase in the costs of operation. She reported that it was anticipated, when the shelter was opened, that it would do 200 bed nights a year. The first year there was in excess of 1300. This is the only facility in the southern part of the peninsula that provides safety and shelter for women and children. Most of the funding comes from the Department of Public Safety, being in partnership with both the Homer Police Department and the Alaska State Troopers. They work as a collaborative and often times the Police Department will bring people to them for homicide prevention. This is a big burden on the staff, dealing with crisis and unsafe situations. They rely heavily on the City to have their backs, with quick response with 911, and having good communications with regard to that relationship. Another issue are the calls from other community services, or a church or a provider that have a woman or child in crisis that do not, necessarily meet the definition of somebody in a domestic abuse situation, but who need a warm place to stay. She commented that they have screened people in, in support of the Community as opposed to screening people out. She stated that she thinks it important for the Council to know that the agency has been able to access federal, state and foundation funding. She echoed Joy Steward regarding leverage and support of local dollars, which goes a huge way in being able to get investors. She noted that they are facing a lot of unanticipated costs such as the high rise in fuel. They would like to be part of the emergency management system of resources and therefore need a generator, which is needed anyway.

Mayor Hornaday noted that when he was on the bench Homer was the first court in Alaska to set up a working relationship with an organization such as the Haven House. He encouraged them to keep up their good work.

Marilyn Sigman, Director of the Center for Alaskan Coastal Studies (CACS), commented on having received grants from the City of Homer through the Homer Foundation the last three years. During that time the number of people the CACS services has grown from 6,000 to 9,000 annually, one third of which takes place within City limits. CACS Homer Headquarters is down town and they have an educational outlet, with the PM, on the Homer Spit. Many tours are conducted on the beaches. The Wynn Nature Center is right across the City limits and serves a lot of Homer people. The grants are used for operations, the hardest dollars to raise and are the dollars that keep the doors open, lights on and fuel flowing. She thanked the Mayor and Council for their hard work and time spent on the budget. She emphasized the public investment, leveraging the private sector in terms of dollars, people and functions. CACS provides education to people of all ages, addresses Nature Deficet Disorder, wherein kids are spending less time outside and the kids that spend time outside have better attention spans and learn better. CACS does the Beluga Slough program that serves 300 kids, 450 Kids go out to the Wynn Center in the fall and probably an equal amount in the summer and the Preschool Library Program, an indoor activity, serves about 300 or 400 people. She commented on CACS serving as a Parks and Rec. function, that they have made a trails map for the Homer area, leveraged outside funding and worked with the Parks and Recreation Committee, partnering with the City to produce the trails guide. The trails guide helps keep people off of private lands. CACS provides land stewardship, own 140 acres at the Wynn Nature Center, an important part of the Bridge Creek Watershed. CACS recently acquired an additional nine acres, a wetland that provides the logistics for a study of the ground water dynamics in that area. CACS helps with economic development, offset tourism, coordinate with eco tourism providers, works with the Chamber of Commerce to help make Homer a destination for eco tourism and environmental education. One of the products that CACS produced through partnership with leveraged grant funding was the Wild Homer Brochure, that, basically, showcases CACS, the PM and the Islands and Oceans Visitor Center. CACS also does a host of travel writers, another example of how they partner. She encouraged the Council to think about the line item appropriation and what the City funding leverages, including expertise and a small number of paid staff and a lot of volunteer hours. For CACS that was 2,000 volunteer hours in 2005.

Mayor Hornaday interjected that he is glad to hear that a lot of people are joining him in opposing the technology non sense. He noted that about half of his visitors want to do the eco touring.

Mike Illg, City resident and Community Schools Coordinator, advocated for the Community Schools Program, adding that this is its 29th year. He commented on the amount of apathy that the program will not go anywhere and that it will be funded. He voiced his opinion that this is the time to worry since the School District will no longer be funding the program, that he has been talking and advocating and sought a recommendation from the Homer Parks and Rec Commission. He expressed an understanding about so many logistics involved, non the less the program is amazing, is a big bang for the buck, access to a multi million dollar facility with custodial, maintenance, electricity, heat, supplies, rock climbing wall, fencing equipment, swimming pool and the list goes on and on and on. Beyond that Community Schools connects to many entities and once Community Schools is gone what is going to happen? How will these get to Homer High School? How will they get to Homer Middle School? How will they use the fields? There is a lot of coordination and there is a lot of responsibility that goes with that. It is not so much to throw it at the City, adding that the City has been supportive of this program for a long time. Maybe it is time for a the Program to be a Parks and Recreation entity, looking at what other communities across Alaska are doing, it makes sense. Mr. Illg stated that he is a lone employee with a lot of responsibility, lot of work, the community schools catalogs, about 18,000 printed and 16,000 mailed. He reported that he is the guy who puts these together, noting that he saves about $2,000 every year by doing these himself. He expressed continued thanks for the Council's continuing funding. He said that he does not think anyone in this town is against any non profit, each speaking on behalf of their own. It is hard to imagine Homer without any of these important programs. He expressed hope that the future of Homer Community Schools could see tomorrow as a Parks and Rec program.

Mayor Hornaday inquired if Mr. Illg had considered forming a non profit?

Mr. Illg stated that this discussion has come up with multiple people and that he thinks what would happen is that they would have to hire another person thus doubling the cost of Community Schools, he briefly elucidated the administrative reasons.

Mayor Hornaday mentioned the previous Parks and Recreation Department disbanded due to costs and encourage Mr. Illg to seriously consider becoming a nonprofit.

Ken Satre, President of Homer Hockey Association, pointed out that the have added an additional letter to give some explanation for their budget request. He noted that they have been put on the December 5th agenda for a presentation and will look forward to giving the Council more information at that time.

Councilmember Stark stated that on the preliminary budget it showed $10,000.00 for a Zamboni and then $40,000.00 was requested for operating funds. He asked what the relationship is between those two items? Is the Zamboni still needed? Are you mostly interested in the $40,000 for the operating fund?

Mr. Satre responded that none of the money requested from the City would be utilized for the Zamboni, that they have actually been working on other funding sources for that money. All of the money received, if any, from the City would be used, primarily, for operations and particularly for the Arctic Winter Games to help make that as successful a venue as possible.

Councilmember Wythe asked if the plans for December 5th to provide the Council a full accounting of their expenses and revenue sources.

Mr. Satre responded that he can give the Council a more detailed one, of course, adding that a lot of it is imperfect since it is new. He said that he would try to provide more information and that he is glad to do that.

Heather Pancratz, Executive Director of Project Grad Kenai Peninsula, thanked the Council and stated that this is a newly formed program in the Kenai Peninsula. They work with seven village schools and do not work with Homer proper, however, five of the schools have Homer as their economic hub the other two are Ninilchik and Tyonek. Non profits fill services that the government does not or cannot provide, these services are usually for the common good and are usually done at a fraction of the cost. Non profits can leverage federal and corporate support and includes local support and individual support. She asked the Council to consider local support. Non profits bring additional programs and resources to the Community, that strengthen the community and keep the dynamic strong and healthy. Project Grad provides professional development to support the teachers and tries to increase the number of kids who graduate and go onto college, so they are raising the expectation of High School Graduate and further training for the students in the villages, that actually strengthens employees and for the Homer Community. Community support is crucial for obtaining funding from larger corporate entities and the federal government. Many and most of the non profits partner together on programs to provide things for the public good. Project Grad works with PM, CACS, Community Schools and all for the students that come to the programs. There are incentive and scholarship programs for High School students. In the last two years they have brought over 70 students to Homer to participate in the summer institute, this year they are budgeting for at least 80 students. There will be additional support through the college and training through college instructors. They have ten employees that received professional wages and benefits. During the summer program there is an additional twelve employees. Their professional development program has brought over 20 nights of stay from people from the lower 48 to train teachers and strengthened economic base in the community. She echoed her colleagues in encouraging the Council to continue to support non profits in Homer and consider supporting non profits that support the surrounding community, that does have a strong impact on the City of Homer. She provided a fact sheet.

Mayor Hornaday noted that the non profits have become major employers in the Community and Project Grad is favorite of Senator Stevens largely through the work of Heather Pankratz.

Ginny Espenshade, lives in the City of Homer and works for a non profit the Kenai Peninsula Youth Court, reported that Homer Youth Court has never had to ask the City of Homer for funding. She noted that they have a pretty steady stream of state funding and are a United Way agency. She spoke in support of the Council continuing to support fiscal and financial support for the other non profits in the Community that need to apply through the Homer Foundation. She commented about speaking to the Council several years ago about that mechanism as a very appropriate and fair way to fund non profits in the community, adding that this mechanism is the envy around the state. The philosophy of funding non profits is another reason that is sufficient. NGO - non governmental organizations, many of which provide governmental type services without PERS and TERS. It is not a luxury to fund non profits. She reported that she watered the High School Foot ball field on Labor Day as a volunteer for Community Schools, because the Borough maintenance does not work on Holidays. She commented on the volunteerism with the non profit and those who have a passion for the non profit(s). It makes fiscal sense to fund non profits, the dollar allocated leverages federal, state and corporate grants and leverages volunteer time. Many non profit organizations have one staff person that works with a legion of volunteers, which would cost so much if on the City payroll. She urged the Council, for those three reasons, to continue to support non profit funding, that is essential to the quality of life and to the community and life in this community.

Scott Wheat, NAMI Circle of Wings Drop in Center, commented on staffing that they have a MAST (Mature Alaskan Seeking Training) worker that holds the main hours of the NAMI Center open and is, therefore, paid through federal money. The MAST worker time is supplemented with volunteers and provides various services to the friends and families of the mentally ill. He noted that this is not just a drop in center and that they also try to connect people up with services for housing and transportation and their other needs. This then relieves the general community of those duties or of maybe having someone wondering around the streets. He spoke in support of the Homer Foundation Programs working with non profits and the City's support. He said that he did not realize that people were not thanking the City for those monies and that he did not recognize it nor would it have occurred to him to thank the City. He said that he was glad to hear that from the Mayor.

Mayor Hornaday called for a recess at 8:36 p.m. reconvening the Regular Meeting at 8:42.5 p.m.

D. 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.

D. 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.

D. 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.

D. 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.

D.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.

After the recess the Mayor continued the public hearing on the budget and associated items.

Jeanne Parker asked and was given permission to read a letter into the record in support of the City funding and management of the Community Schools Program. She read: The quality of life activities provided by community schools undoubtedly has its small cost more than outweighed by the many benefits to all community members, especially Homer's young people. Community Schools Programs provides a opportunity for multi age mixing in healthy and educational activities. It is crucial that the use of public facilities is expanded, as it gives the public a sense of ownership and hence responsibility for public infrastructure. Please do not allow this important program to fade away. Ms. Parker did not disclose the author and submitted the letter to the Clerk. ⁽²⁾

Jeanne Parker reiterated how important education is and that as tax payers, we all pay for education and tend to think of it as geared toward young people, but good education is life long, multi age. As Mike Illg said the Community Schools Program is 29 years old, she added that she has been a user of Community Schools for 29 years and is the thing she uses the most of in Homer. She noted that it is a mixture of ages that use the Community Schools Programs. She noted that Homer is working toward a Community Center, but the facility cannot be duplicated. The facility belongs to the public and the public needs to have access to it. The Borough is going to stop administering this program at the end of their Fiscal Year. She emphasized the importance of this program for quality of life and that the town youth and adults be able to have access to these public facilities. She urged the Council to take this on as a Parks and Recreation Activity. She noted that there is parks maintenance but no recreation budget.

Mayor Hornaday advised that every other agencies has vacated their funding of this project. No state, school or college funding.

Jeanne Parker stated that she understood all of that and that she urges the Mayor and Council, as a citizen of Homer, that this Program is very important to her.

Bruce Guetschow addressed the Mayor and Council regarding Homer's Community Schools that this is a matter of severe importance to the vitality of the Community. It is not only a venue to the aspiring athlete and/or alumni, but is also a venue where advise and example can augment any and all generations. Not only should not the existence of the program be in question, but also it should not be required that residents pay for indoor time. Community Schools should be soundly subsidized so that the, here, society can co exist synergetically. He thanked the Council.

Taneeka Hansen, resident and Homer High School student, voiced support of Homer Community Schools. She is a Community Schools user, with her family, as long as she has been ready to play volley ball with adults. She advised that it has given her a chance to mix with people of all ages and also has helped her in a lot of ways, learn how to play, just a great benefit and also for physical activity throughout the year. She noted that if she did not have this opportunity it would be unfortunate. She encouraged the City to find a way to afford this program, all aspects, and especially that physical education is important for a lot of Americans and needs to be encouraged.

Mark Landwehr thanked the Council and testified on the budget. He commented on the number of ways that people fund things such as the Salvation Army that has a paying Board of Directors. He commented about Ray Steiner of Steiner Construction who sits on that Board. He suggested that non profits consider having people support them rather than trying to get 100% of their money from the City Council. The Chamber of Commerce must bring in a lot of money from people who sit on that Board. He said that he liked the jingle, that it was very interesting and sounded a lot like Yule Kilcher's son Otz or Gordon Lightfoot. He asked if the Council is aiming this at the Canadians, because we do want to invite Canadians to Homer. He said it was that sort of folksy music and that he did not hear anything about anybody native and we are, basically, a native community, surrounded by native people and that jingle makes it sound like we are jolly old England. If someone wants to get 100% funding from the state, then they should become a part of the state. He thanked the Council for listening to him.

Scott Wheat testified that the Community Schools has provided him, personally, services through their welding class and repaired an item that had been broken in his neighborhood. Also, for Circle of Wings they took on a project repairing some chairs that would have been thrown away. Part of the deal was that he tell people that they provided this service. He noted that the welding class had trailers they'd put together to sell and a truck rack. He stated that the quality of work looked great. He noted that, at least, the welding class is trying to find ways to support their own programs.

Mayor Hornaday stated that he has invited the Community Band to come and play at the next meeting, which should be fun.

Larry Slone, Homer resident, offered a note of caution about the City being too willing to spend much of the tax payers hard earned money. There has been a whole parade of non profits coming through here this evening and they all have explained in great value to the benefit of the City and Community, both socially and economic realms. The point is if they are having such a difficult time this year with providing funding, probably draw a parallel with the situation with tax payers many of whom are also having a difficult time with providing for their own families. The demand on the City tax payers is going to be much larger this year, if they were to try to commit to the needs of all of these non profits. It may be getting to the stretching point. He asked the Council to bear in mind that there is a limit to what the tax payers are willing to provide and that we may be getting quite close to it.

Leonard Wells, City resident, testified that, in general, he hopes the Council will, this year, not balance the budget by resorting to a tactic used last year; getting the funds by saying that the Library would charge a fee for non residents or residents in the amount of $40,000.00, the amount given to Homer Foundation. It could have been any others, but that was the funding Council was talking about at the time. Then, immediately, at the next meeting one of the first activities Council did was to rescind that fee. He voiced his opinion that this was fraud, wherein Council took money away from funding things like maintenance on vehicles, and other activities that truly are core government jobs. He thanked the Council.

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. (First Reading November 14, 2005 Sent to Planning Commission for Hearing and Review, Public Hearing November 28, Second Reading December 12, 2005.). Page 115

There was no public testimony.

ORDINANCE(S)

A. 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. (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.)

Memorandum 05-179, from Planning Commission. (Suggested amendments)

McLAY/WYTHE - SO MOVED FOR THE ADOPTION OF ORDINANCE 05-17 FOR SECOND AND FINAL READING BY READING OF TITLE ONLY.

Councilmember Heimbuch stated that he was taken by the public argument about weakening public access to the appeal of ordinary citizens. He has no problem with developing a definition for aggrieved status and in fact that it is pretty clear that the State gives the City Council the authority to do so and, perhaps, even expects them to do so. None the less, he said that he believes that a person who would be in an aggrieved status might not necessarily have the moxie or the inclination to pursue an appeal that they might rightfully do if they were a little more astute about it or had the time or any one of a number of reasons. He submitted, that perhaps, if a person who operated as a watch dog, such as Mr. Shavelson, were to go out and obtain the signature of, say, three people, that were believed to be of an aggrieve status that it might serve in lieu of an aggrieved person himself bringing forth an appeal. A third level goes right to the heart of the matter, about staff time and the real limitations. He commented on the financial considerations and that perhaps there should be a third level equally entitled to pursue an appeal by simply paying $700 or $750, refundable if successful on any part of the appeal. The idea is not to do away with the importance of determining aggrieved status, but to allow an ordinary person to get the interested aggrieved people to rise to the occasion of what this problem is also about. If the Council is interested, he offered to make an amendment.

STARK/SHADLE - MOVED TO AMEND LINE 102 PAGE 123 TO ADD, 4. GRANT OR DENIAL OF A CONDITIONAL FENCE PERMIT. (Per suggestion of the City Attorney in his memo to Council and then renumber rest. 4 to 5 and 5 to 6.)

Councilmember Stark commented that this is a relatively simple thing and was apparently left out of the Ordinance by inadvertence. He reported that the City Attorney concurred. He clarified that this is an insertion at line 102.

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

Motion carried.

NOVAK/ - MOVED TO ADD THE RECOMMENDATIONS OF THE HOMER PLANNING COMMISSION TO THIS AND WE HAVE A MEMO FROM BETH MCKIBBEN THAT LISTS THOSE ON PAGE 157 OF THE PACKET AND WITH THAT AND WITH WHAT COUNCILMEMBER HEIMBUCH HAS STATED HERE A COUPLE OF MINUTES AGO I WOULD LIKE TO RECOMMEND THAT WE INCORPORATE THESE INTO THIS ORDINANCE AND POSTPONE THE SECOND READING TO THE NEXT MEETING WHEN WE CAN HAVE ALL OF THESE INCORPORATED IN IT.

Mayor Hornaday noted that these are two motions.

NOVAK/ - CLARIFIED - THE MOTION IS TO ADD THE RECOMMENDATIONS OF THE PLANNING COMMISSION TO THE ORDINANCE IN DISCUSSION HERE AND IN CITY CODE CHAPTER 21.68 ON APPEALS.

Motion died for lack of a second.

WYTHE/McLAY - MOVED TO AMEND LINES 87 AND 88 TO INCLUDE "APPROVAL OR DENIAL" , INSTEAD OF JUST BEING FOR THE DENIAL THAT IT WOULD INCLUDE THE APPROVAL OF THE PERMIT ALSO (21.68.015 1. and 2. of a zoning permit, of a sign permit.)

Councilmember Wythe stated that she attended the Planning Commission second meeting on this Ordinance and that this was one item that they felt strongly about - that it should be appealable approved or denied. She clarified that it was for both zoning permit and sign permit.

VOTE:(primary amendment 3.) YES: NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

WYTHE/NOVAK - I WOULD MAKE A SECOND AMENDMENT ON LINES 81 AND LINES 95 TO STRIKE TO STRIKE THE WORD "ONLY".

Councilmember Wythe stated that it does not really change the text that much but it can change the implication it does not limit it to a restrictive and leaves it a little more open for potential consideration. (21.68.015 Decisions subject to appeal. a. Only the following acts............... b. Only the following acts.............)

VOTE: (primary amendment 4) YES: NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

HEIMBUCH/McLAY - LIKE TO OFFER THE FOLLOWING AMENDMENT ON PAGE 125 TO BE INSERTED AT THE LINE 160 ADDING A FOURTH NUMBER TO THOSE PEOPLE DESCRIBED IN 21.68.020 WHO MAY APPEAL, 4. WOULD READ: ANY PERSON WHO OBTAINS THE SIGNATURES OF THREE AGGRIEVED PEOPLE AS DEFINED IN SECTION C. OF 21.68.020 AND ADDING A FIFTH NUMBER, NUMBER 5. ANY PERSON PAYING A FEE OF $750 SUBJECT TO REFUND IF THE APPELLANT IS SUCCESSFUL ON ANY ASPECT OF APPEAL.

Councilmember Wythe inquired if the $750.00 would buy anyone the right to appeal.

Councilmember Heimbuch confirmed, adding that in a fashion, this serves to ease, a little bit, the concerns that very well spoken people have made to the Council. He reiterated his earlier comments. He commented on the refundable fee should the appellant prevail and that this seems like a fair balance. He voiced his hope that this meets with the approval of the testifiers.

VOTE: (primary amendment 5.) YES: WYTHE, SHADLE, STARK, HEIMBUCH, McLAY.

NO: NOVAK

Motion carried.

WYTHE/HEIMBUCH - I WOULD LIKE TO MAKE A FURTHER AMENDMENT, ON PAGE 124 LINE 155 WHERE IT IS REFERRING TO WHO PARTICIPATES IN THE PROCEEDINGS BEFORE THE COMMISSION, AND I WOULD LIKE TO INSERT AFTER WHO PARTICIPATED, INSERT THE WORDS, " IN PERSON OR BY WRITTEN COMMUNICATION".

Council points pro and con:

Concerns that people are not always here, not always available on the day that the Commission hears a case, so if there is the ability to provide participation in written form, just as with Council meetings people can provide written letter and do not have to come before the Council on public hearing day. This may relieve some concerns of people.

Many people are away fishing or out of town.

It does require an awareness of what is going on.

When not in person the Commission cannot question a person about their position. It is hard to make a decision with a written position, when it is unclear as to the position being taken. Like in a Court of Law, you have to be able to question the person to get their position and to make a decision.

The whole writing of number 3. is in question.

It is very clear in the first part - who participated in the proceedings before the Commission and is aggrieved by the action or determination. Then there is a comma, and its modified - or who would be aggrieved.

How does the "or who would be aggrieved" affect the who participated, or does it modify - or must be also participated in these proceedings? Is that what this means? Or would they just naturally be aggrieved by a reversal of a decision? One does not require participation at all and it is not that clear from the writing.

One may be aggrieved if the decision were reversed, but would that still have required you to have been an active participant in writing or in person?

Does it help to finish out the sentence, " or who would be aggrieved if the decision of the Planning Commission were reversed by the Board of Adjustment"?

The concept was that only if you were here on the day that the Planning Commission heard the original thing would you be able to ever have the follow up grievance/follow up appeal.

This is where it bogs down on number 3. A person should have to have been at a proceeding in order to be an aggrieved person.

Should have standing by virtue of where you live.

Don't think a person should have to attend meetings regarding something just because they could end up possibly being materially affected by the decision.

Not sure about limiting the standing of an aggrieved person to having participated in something.

Which is why it could be in writing and could be as simple as recognizing that a matter came before the Commission on this day and reserving the right to appeal should the individual become aggrieved by the decision.

If this amendment passes, an advocate cannot go out and get the signatures of three aggrieved people unless they were all there in person or in writing.

Therein lies the problem, one could be aggrieved when one finds out what the Commission did.

It comes down to position and what one finds out what transpired before the fact so that after the fact it can be appealed. That is what creates the problem here, to say that one has to be at the meeting to hear a decision made before it can be appealed does not make any sense.

VOTE:(primary amendment 6.) YES: SHADLE.

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

Motion failed.

NOVAK/ - MOVED TO TABLE THIS ORDINANCE FOR FURTHER USE AND DISCUSSION LATER.

There was no discussion.

Motion died for lack of a second.

HEIMBUCH/McLAY - I WOULD MOVE TO POSTPONE THIS ORDINANCE UNTIL OUR NEXT REGULARLY SCHEDULED MEETING. (December 12, 2005)

City Manager Wrede asked the Council what they would like addressed by the December 12th meeting.

Ask the City Attorney to look at number 3. with the discussion that Council had on that matter. Particularly the part - if the decision of the Planning Commission were reversed by the Board of Adjustment.

Ask the City Attorney to look at all of the adjustments that the Council made with that same concept in mind. Just to assure continuity between the first statement of the sentence and the second statement where there are separated concepts.

Councilmember Novak asked if the staff could incorporate the recommendations of the Planning Commission in the provision of the Ordinance.

Councilmembers Stark, Wythe and Heimbuch voiced partial objection since Councilmember Novak's amendment did not get a second.

Mayor Hornaday stated that Councilmember Novak is entitled to ask for that, it is appropriate, whether or not the Attorney addresses it, is another issue.

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

Motion carries.

B. 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.)

B1. 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.)

Memorandum 05-180, from City Manager, Re: Request Postponement.

STARK/SHADLE - MOVED FOR THE ADOPTION OF ORDINANCE 05-59 BY READING OF TITLE.

There was no discussion.

STARK/HEIMBUCH - MOVED TO MAKE THE SUBSTITUTION OF ORDINANCE 05-39(S)

AMENDED TO SUBSTITUTE ORDINANCE 05-39(S).

Councilmember Wythe voiced a conflict of interest since she works at HEA and advised that the City Attorney agreed with her that she has a conflict of interest.

Mayor Hornaday excused her from the table and there were no objections by the Council

VOTE:(SUBSTITUTE ORDINANCE) YES: NON OBJECTION. UNANIMOUS CONSENT.

WITHOUT WYTHE.

Motion carried.

There was no further discussion.

STARK/HEIMBUCH - MOVED TO POSTPONE ORDINANCE 05-39(s) FOR TWO MONTHS.

There was no discussion.

Motion carried.

Councilmember Wythe returned to the table.

C. If reconsideration passes main motion as amended is back before the Council. 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.)

RECONSIDERATION PASSED UNDER RECONSIDERATIONS.

MAIN MOTION AS AMENDED IS BACK ON THE FLOOR from November 14, 2005:

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

Primary Amendment 1. HEIMBUCH/SHADLE - MOVED TO AMEND THAT THE COUNCILMEMBERS WILL RECEIVE $150.00 PER MONTH DURING THEIR TERM OF OFFICE AS A REIMBURSEMENT FOR EXPENSES.

Secondary Amendment 1.STARK/HEIMBUCH - MOVED TO AMEND TO INCLUDE THE MAYOR AT $200 PER MONTH.

Primary Amendment 2. 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 some discussion about the amendments to Ordinance 05-59(S)(A).

WYTHE/NOVAK - MOVED TO STRIKE $150.00 PER MONTH DURING A TERM AND SAY THAT THE COUNCILMEMBERS WILL RECEIVE A $50 NON WAGE STIPEND PER MONTH DURING THEIR TERM OF OFFICE.

Comment that eliminating the PERS also eliminates the fica tax ability. It is wrong to increase Council salaries by this much money when the City is not paying the employees a proper salary.

STARK/SHADLE - MOVED TO AMEND TO MAKE SALARY FOR THE COUNCIL $100.00 AND FOR THE MAYOR $150.00.

There was some discussion pro and con.

VOTE:(secondary amendment) YES: HEIMBUCH, SHADLE, STARK.

NO: NOVAK, McLAY, WYTHE.

TIE VOTE: MAYOR: YES:

Motion carried.

There was no further discussion other than to clarify what is being voted upon.

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

NO: WYTHE, NOVAK.

Motion carried.

There was no further discussion.

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

NO: WYTHE, NOVAK.

Motion carried.

CITY MANAGER'S REPORT

A. City Manager's Report (Updates and Follow UP: 1. UA President Hamilton hosting a reception for Council at the College on December 12, 2005 between Committee of the Whole and the Regular meeting and will stop by the Regular Meeting, 2. Ordinance 05-39 request postponement to January, 3. Ordinance 05-17 PC special meeting November 21, 2005, 4. UA and City Hall preliminary planning work on new City Hall, 5. Town Center Plan, Fred Meyer and CIRI, 6. Heath Street Extension, 7. Parity Study/Salary and Benefits Survey, 8. 2006 Budget, 9. Resolution 05-113, regarding Planning Matters; Homer Foundation Quarterly Report and Oiled Regions of Alaska/Proposed Resolution.)

Councilmember Stark requested that the Personnel Officer provide budget fiscal information by December 12th regarding the top 5 to 10 salaries that are most out of synch and most in need of adjustment. There be a total rework of the salary schedule by March 31, 2006.

City Manager requested and suggested having a broad discussion at a worksession with the Council regarding salaries and benefits etc.

Worksession with the Planning Commission and Department and public hearing.

Councilmember Wythe suggested starting the Budget Worksession at 5 p.m. for the purposes of discussing the results of the parity study, entry income, actual wage scales and compensation.

Councilmember Novak requested that the City Manager bring Council some options on the COLA (cost of living allowance) as to twice a year or once every two years and so on.

B. Games Report. (Iditarod Trail Committee Inc and South Peninsula Hospital)

C. Bid Report. (RFP: Design of Improvements to the Water Treatment Plant: Sealed proposals are due by 4:30 p.m. on January 10, 2006.)

COMMITTEE REPORT

A. Road Standards Committee

B. Public Arts Committee. (Meeting notes from October 10, 2005.)

PENDING BUSINESS

NEW BUSINESS

RESOLUTIONS

A. If reconsideration passes Main motion back before the Council. 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.

RECONSIDERED UNDER RECONSIDERATIONS.

MAIN MOTION IS BACK ON THE FLOOR: WYTHE/HEIMBUCH - MOVED FOR THE ADOPTION OF RESOLUTION 05-113 BY READING OF TITLE.

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.

Discussion to discuss at the next Committee of the Whole

HEIMBUCH/McLAY - MOVED TO POSTPONE THE RESOLUTION UNTIL THE NEXT REGULARLY SCHEDULED COMMITTEE OF THE WHOLE MEETING. (December 12, 2005)

Discussion was to do this at the Committee of the Whole because the Regular Meeting is too busy. Some Councilmembers wanted to wait until January. Discuss 5 to 10 minutes at the December 12th Committee of the Whole.

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

Motion carried.

B. Resolution 05-126, Of the City Council of Homer, Alaska Authorizing the Amendment of the City of Homer, Alaska and PERS (Public Employees's Retirement System) Participation Agreement to Add the Clause "Excluding all Elected Officials Effective November 15, 2005. City Manager. Depends on Council Action on Ordinance 05-58(S)(A).

STARK/WYTHE - MOVED TO APPROVE RESOLUTION 05-126 BY READING OF TITLE.

Councilmember Stark stated that this carries out the will of the City Council in the previous Ordinance.

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

NO: NOVAK.

Motion carried.

C. Consent Agenda Item E. Added under agenda approval: Resolution 05-127, Of the City Council if the City of Homer, Alaska Urging the Kenai Peninsula Borough to Proceed forthwith with the Design, Bidding and Construction of South Peninsula Hospital Expansion Project. Stark, Shadle, Heimbuch. Recommend adoption. .

STARK/HEIMBUCH - MOVED FOR THE APPROVAL OF RESOLUTION 05-127 BY READING OF TITLE.

It was noted that there was a lot of public comment, from all sides, in support of this Resolution. This is very much in the interest of the Southern Peninsula. If the Hospital Boards, Administration and Employees are for it then so should the City be for it. Concurrence with the statements made under Public Comments about patient care issues. This Resolution puts the Council on record in favor of the project.

VOTE: YES: NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

COMMENTS OF THE AUDIENCE

Mark Landwehr, Homer resident, voiced appreciation of the opportunity to speak to the Homer City Council. He stated that he had a few ideas: Ethics and Fraud - such as when Gail Phillips said that a barrel of oil would only be $9.00 a barrel forever. She had some inside information, because President Clinton had just sold off the strategical oil reserve. Mr. Landwehr said that people were kind of in the dark about this, but Gail Phillips knew and that this changed everything and that it did the devaluation of the dollar. Like selling off Fort Knox. We got out of the business of being commodities, because that was bad business. He stated that there is other fraud that he has noticed, such as when one goes to Anchor Point it goes from a very high rate of speed, automatically to 20 miles per hour. According to AAA cities like that have the designation called a judicial hell hole. He said that he would not want to be acquainted with a judicial hell hole, like the one pointed out on either 60 Minutes or 20/20, wherein they were talking about a road in Florida where there are numerous deaths on the highway. Roads that do not meet federal standards, like the roads here, no handles or dividers. He stated that we do not have a lot of high tech that we can afford, for instance a safety thing would be to equip all the City vehicles, that have to be on the roads with radar that broadcasts its radar to all the cars like his that is set up to pick up these signals. That is why they allow people to have radar detectors. It is something good. If someone cannot see that blade ahead of them in a complete white out someone could end up like the lady that lost her head that looked like Marilyn Monroe. It is dangerous to not have that. This will prohibit accidents.

Ginny Espenshade commented in objection to the extension of Heath Street. She stated that, reading the Intersection Study, extending Heath Street will increase the problems on Pioneer, worse then now. She encouraged the Council to look at this as a whole. Even ADOT recognizes if more traffic is dumped on the Pioneer and Heath Street Intersection it will back up into the Lake Street.

Councilmember Stark interjected comments, that the plan is to take the light down at Lake Street and have a signal at Heath. This would solve the problem.

Ginny Espenshade noted that this is not in the Council's decision of today, the decision today was to add this as a capital improvement project. She said that she is glad that Councilmember Stark is thinking of this. She encouraged redesign so that there are not two stops on Pioneer, with more traffic.

Councilmember Stark interjected a similar comment.

Ginny Espenshade suggested that the Council, as a municipal body, specifically invite the School District and the Risk Management Office to the discussions on the Heath Street Extension. She commented about safety concerns. She expressed appreciation for trying to balance the appeals process and the work load to staff, that these are steps in the right direction. She said that she is really puzzled when they cannot even get a second on a motion to include the Council's Planning Commission's recommendations. If that is an indication of the problems that the Council is going to address she said that she could tell the Council, as a member of the public who has spent hours with the Planning Commission testifying, that when the Council is disregarding the Planning Commission recommendations they are disregarding the public input on those issues. The Planning Commission is the body that gets the hours and hours of concerned public input on planning issues. She voiced appreciation of the effort to include everyone in the process.

Leonard Wells, City resident, again sort of on the budget issues said that he thought he would make a comment on the PERS bit and what went on at the last meeting where, after giving themselves a 300% increase the Council decided to pick one employee of the City, who you had just renegotiated a contract with and passed during that meeting that you decided to increase that employee's compensation again at that meeting. He voiced recognition that this did not necessarily take place at that meeting since it would be going into the budget, but it just seemed insane to give $100 here and $100 there. Council just finished negotiating a renewed contract and then said you did not think you gave him enough money.

Larry Slone commented on Resolution 05-127, which Council just approved, that he did not think that the wisest thing to do. From all of the testimony received tonight and the meeting with Mayor Williams there was a lot of ferver, but all those who gave testimony or virtually all of them are associated with the Hospital itself in some way, shape or form. There were very few members of the general public, if any, that testified. He stated that he does not question the necessity of having medical facilities here, the question is who should make that decision. The decision should be made by the public, who made the decision and made a contract with the Borough Mayor, as he pointed out, regarding the maximum amount of money available and that contract, in effect, has been voided. If the construction proceeds with a shell building, not putting in all of the facilities and all the equipment, that breaks the contract with the public. He stated that Mayor Williams has proposed to have a transparent contract and transparency in his administration. Putting the pressure on him like this to, in effect, tell him that shell construction is acceptable and/or try to ram it through and expend the required 85% of the funds by next October puts tremendous amount of pressure on him to break that contract with the public. Mr. Slone commented on Mayor Williams' expertise and expert advisors' opinions that it would be virtually impossible to accomplish that task by next October. He asked the Council to bear this in mind.

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 commented that we grieve the passing of former Mayor Harry Gregoire, that he had ordered the flags lowered to half mast, adding that the City Clerk made a nice memorial plaque that he presented to the family at the Elks' Lodge. He stated that we shall miss Harry.

COMMENTS OF THE CITY COUNCIL

Councilmember McLay had no comment.

Councilmember Heimbuch told Ginny Espenshade that the Council had included almost every substantive amendment recommended by the Planning Commission, that the memorandum from the Commission was a supporting document and incorporating that cart blanche into an Ordinance was really asking a lot all at one time. He noted that there is a lot of the heart burn right now, perception or reality, with the Planning Commission and Council that has to do with subdivisions right up where Ginny Espenshade lives and where he lives. Traffic can be routed all Council wants on Pioneer Avenue for the next 100 years and it is not going to change the fact that "we" live on the side of a hill and that people have no choice but to go down. He commented that agonizing over Heath Street, Kalman, Anderson, Shellfish does not do anything and that "we" are still going to end up bringing people down, down down, no matter what is done. It is an engineer's perspective that all that needs to be done is to draw straight lines to make things a little better, but the fact is that we talk about making arterials run through long established neighborhoods, not a very good recipe. Biggest major impediment to traffic flow is 8 to 8:20 a.m. to about 3 and 3:30 p.m. between Paul Banks and the High School, one of the longest stretches in town that is undeveloped and unsightly. The East End and East Hill intersection is only going to get worse as the years go on no matter how much traffic is routed through neighborhoods. That is where a lot of the growth is going to go. Neither traffic light nor round-a-bout are going to solve the problem, which will probably be solved by an overpass or one way routing and couplets through this town. He noted that other towns, unless all Eastern European mentality, have had to do different things. "We"are going to have to look, at some point in the near future, at about prioritizing that East End/East Hill Intersection and a way to get that whole corridor from Paul Banks to the little traffic light (Lake Street and Pioneer) modernized to move traffic off the hillside in Homer. He emphasized that "we" have to keep the traffic moving and that probably the Ken Castner and others' idea of couplets, as distasteful as it might be, provides a continuous movement of traffic. This traffic movement, especially during the small portions of the day, needs to be discussed and has to be changed. He stated that he does not want this traffic through his neighborhood and that people can get up 5 minutes earlier and get down the hill.

Councilmember Shadle stated that the teleconferencing phone system is a little on the weak side, that there are about 5 second pauses, adding that this was a good meeting.

Councilmember Stark noted that everyone says that the teleconference system is bad and, he emphasized, that it is worse when on a cell phone in a car with studded tires. He agreed with Mr. Wells comment with regard to the increase in the City Manager's salary of $100.00 a month and that the only one that voted correctly, a No vote, was Councilmember McLay. He voiced his opinion on why this happened the way that it did. He commented on the question about the hospital expansion and that the reason there was not more public participation is that it came up at the last minute, today, and that time is of the essence. The concerned people, including the public, have been trying to get the hospital improved. Two years ago "they" voted for $10.5 million in bonds for the project and now the project is on the verge of being taken away, because someone feels that it is more comfortable for the Borough to just let is slide and then do it over again. Those most concerned are those who spend a lot of time in the hospital and that is they who testified, plus four representatives of the Service Area Board, who have been working on this project for years. The Council took the right decision on this. He stated that he thinks that it can be done and voiced his hope that the Borough gets in gear and does it.

Councilmember Novak stated that when the Borough Mayor was down last week talking about the hospital, he did say that they would take another look at it, and now he has some direction from the hospital employees and from the Homer City Council. He expressed confidence that they will take another look at it and that it will go from there. He commented about the traffic on Lake Street and Heath Street, that the State does have a traffic study, of which they gave the City last year, and that it does talk about interchanges and that this was one area wherein there was discussion about doing a specific project just because that Lake, Heath and Pioneer area is unique and that the State would look on it as a project within itself. So, other things that spin off of it will have some effect on that and that the two will intertie with those two intersections. There will not be a project done such as the Heath Street Extension without some modifications of that intersection on Pioneer.

Councilmember Wythe, in response to Mr. Wells comments about the City Manager's salary increase, stated that the City has a really, really good City Manager and that other cities have tried to hire him away from Homer and that "we" have the luxury of retaining him. She stated that she feels absolutely no remorse about providing him with a better salary just knowing "we" are not paying him nearly what he is worth, as he sits here. She stated that as Council goes through the budget this year, the Council has taken an excessively conservative position with regards to employees' salaries. Employees will see some positions come up, such as the Finance Director position, which has been advertised, readvertised with an increased salary and that the City is still not receiving the quality of applications that were hoped for, for that position. The City as a business entity, not as a government entity, has to be able to attract and retain viable employees and this ability is being lost in the current market. It is time to take a serious consideration of how "we" run this business and consider "our" employees first, for a change.

ADJOURNMENT

There being no further business to come before the Council the meeting was adjourned at 10:07 p.m. by Mayor James C. Hornaday. The next Regular Meeting is scheduled for Monday, December 12, 2005 at 7 p.m. and the next Committee of the Whole is scheduled for Monday, December 12, 2005 at 4 p.m. A Special Meeting is scheduled for December 5, 2005 for a budget public hearing. Council may schedule a Worksession for Monday, December 5, 2005 at 5:00 p.m. All meetings scheduled to be held in the Homer City Hall Cowles Council Chambers located at 491 E. Pioneer Avenue, Homer, Alaska.

_____________________________________

MARY L. CALHOUN, CMC, CITY CLERK

Approved: _______________________________

1. Mr. Griswold did not cite the document of this reference, there is no 29.... in City Code.

2. The letter was signed by Shawn Hansen, City Resident.