Session 07-26 a Special Meeting of the Homer City Council was called to order at 7:02 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: CHESLEY, HEIMBUCH, NOVAK,

ROBERTS, STARK, SHADLE (telephonic),

WYTHE

AGENDA APPROVAL (Only those matters on the noticed agenda may be considered, pursuant to City Council’s Operating Manual, pg. 5)

Councilmember Shadle has requested telephonic participation.

The agenda was approved by consensus of the City Council.

PUBLIC COMMENTS UPON MATTERS ALREADY ON THE AGENDA

Ray Kranich, city resident, thanked outgoing Councilmember Stark for his commitment to step forward and serve the City. He thanked Councilmembers Chesley and Wythe for stepping up. Mr. Kranich commented on the new courthouse, stating there were advantages to the private sector building it rather than the government sector. It would pull several dollars of government rental income from the City, defeating what the City is trying to encourage.

NEW BUSINESS

A. Recognition to Outgoing Elected Official, Doug Stark

Mayor Hornaday read the recognition to outgoing Councilmember Stark:

APPRECIATION AND RECOGNITION

HONORABLE COUNCILMEMBER

DOUG STARK

LEGISLATIVE COMMITMENT

Councilmember from October 2002 to October 2007

Fire Department Strategic Planning Committee February 2004 to July 2004

Community and Economic Impact Standards Task Force May 2005 to August 2005

Transportation Advisory Committee April 2006 to October 2007

Global Warming Task Force January 2007 to present

Alaska Municipal League District 3 Representative 2006/2007

Your time, energy and dedication to these issues is hereby recognized:

House Bill 431, a Proposed Municipal Dividend Program

Homer Volunteer Fire Department 2004 Strategic Plan

Refurbishment of Tanker 1

State Transportation Projects Affecting Homer Residents

Installation of Traffic Signals at Intersection of Lake Street and Sterling Highway

South Peninsula Hospital Expansion Project

Kachemak Emergency Services Fire Station Site on Diamond Ridge Road

Restructuring the Roads Standard Committee

Opposing the Increase of Kenai Peninsula Borough Sales Tax Rate

Amendments to Public Employees Retirement System

Alaska Municipal League 2006 Summer Meeting in Homer

Outgoing Councilmember Doug Stark expressed his disappointment in that Homer has the highest sales and property tax rates on the Peninsula. Much of it is due to the large number of non profits in Homer; there are a lot of businesses and people are not paying taxes. While the upper income people are not hurt, the lower income people are. It is hard for kids out of high school to get jobs and live in Homer, as they can’t afford rent. There are tough times ahead for the citizens of Homer, although it is self-inflicted with things they desire. He offered best wishes and good luck to the citizens of Homer.

B. Oath of Office administered to the Newly Elected Officials, Lane Chesley and Beth Wythe

City Clerk Johnson administered the oath to newly elected officials Lane Chesley and Beth Wythe.

Mayor Hornaday called for a recess at 7:12 p.m. and reconvened the meeting at 7:23 p.m. While in recess cake and coffee was served.

C. Memorandum 07-165, from City Clerk, Re: Selection/Appointment of Mayor Pro Tempore

Councilmember Novak was nominated as Mayor Pro Tempore.

There was no discussion.

VOTE: YES. NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

Councilmembers were given the choice of a different seat; seating remained as established, with Councilmember Chesley replacing outgoing Councilmember Stark.

D. Memorandum 07-166, from City Clerk, Re: Appointment of Councilmember to Transportation Advisory Committee

Councilmember Chesley was nominated as Council’s representative to the Transportation Advisory Committee.

There was no discussion.

VOTE: YES. NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

E. New Courthouse in Town Square

The courthouse is an economic engine, providing good year round jobs, and a major draw for people to come to Homer for court matters. Jurors, attorneys and witnesses would provide an economic boom to Town Square. The court has outgrown their present location and would like to relocate in Town Square or adjacent to it. They prefer to work with the City of Homer as the State does not have the money to build new courthouses. The City would build the court with the guarantee of payment through revenue bonds. The court would lease the building from the City, thus guaranteeing payment of all bonds. At the end of the lease the City or the State could own the building. There would be no need to go to the voters for revenue bonds.

Drawbacks of the lease arrangement were discussed. Owning a building that the City has to maintain is not appealing. If private enterprise constructed the court building it could still be in the Town Square area, but would alleviate the City of Homer from the financial burden. If built in the Town Square area, it would help with the infrastructure development. It would be a larger economic benefit to the community as a non City project. Revenue bonds do not increase the City’s economic situation.

Council discussed the City limiting participation. There are a number of private companies that would like to take on the project. Private enterprise would recapture their investment immediately. If the private entities cannot work it out with the State, the City’s participation could be revisited. Voters may lack enthusiasm upon learning the $7M investment has jumped to $11M to accommodate the court.

WYTHE/NOVAK – MOVED TO SUPPORT THE STATE GOING FORWARD WITH A PRIVATE CONTRACTOR WITH THE UNDERSTANDING THE CITY WOULD BE WILLING TO PROVIDE A FALLBACK PLAN IF THEY ARE NOT ABLE TO WORK IT OUT WITH A PRIVATE CONTRACTOR.

City Manager Wrede indicated there was no pressure to act on the proposal tonight, as more information will be available.

NOVAK/SHADLE - MOVED TO TABLE.

There was no discussion.

VOTE: NO. ROBERTS, WYTHE, CHESLEY, HEIMBUCH

VOTE: YES. SHADLE, NOVAK.

Motion failed.

Council expressed the need to hear comments from the general public before making a decision of the City’s involvement.

HEIMBUCH – CALLED FOR THE QUESTION.

VOTE: (main motion) YES. HEIMBUCH, WYTHE, SHADLE

VOTE: NO. ROBERTS, CHESLEY, NOVAK

Mayor Hornaday broke the tie vote with a NO vote.

Motion failed.

CHESLEY/NOVAK - MOVED TO SCHEDULE FOR A PUBLIC HEARING ON NOVEMBER 13, 2007.

There was no discussion.

VOTE: YES. NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

COMMENTS OF THE AUDIENCE

There were no public comments.

COMMENTS OF THE CITY ATTORNEY

City Attorney Tans was not present.

COMMENTS OF THE CITY CLERK

City Clerk Johnson congratulated Beth and Lane.

COMMENTS OF THE CITY MANAGER

City Manager Wrede congratulated the new Councilmembers, stating he looks forward to working with them.

COMMENTS OF THE MAYOR

Mayor Hornaday is headed for Japan on Friday; there will be 22 City Councilmembers from Teshio to greet them. He appreciates the Clerk for straightening out his upside down letters.

COMMENTS OF THE CITY COUNCIL

Mayor Pro Tempore Novak congratulated the two new Councilmembers and looks forward to a productive new year. He appreciates Council’s confidence in him as Mayor Pro Tempore.

Councilmember Shadle congratulated both Councilmembers.

Councilmember Wythe thanked everyone for their support, stating she looks forward to another three-year term on the Council.

Councilmember Chesley is looking forward to working with Council, the Clerk and the City Manager.

Councilmember Roberts welcomed Lane and congratulated Beth.

ADJOURNMENT

There being no further business to come before the Council, Mayor Hornaday adjourned the meeting at 7:57 p.m. The next Committee of the Whole scheduled for Monday, October 22, 2007 at 4 p.m. Next Regular Meeting is Monday, October 22, 2007 at 7 p.m. A Worksession is scheduled for Monday, October 22, 2007 at 5:30 p.m. All meetings are scheduled to be held in the City Hall Cowles Council Chambers.

______________________________

JO JOHNSON, CMC, CITY CLERK

Approved: _____________________