Session 03-20, a Special Meeting of the Homer City Council was called to order at 7:08 p.m. by Mayor Jack Cushing at the Homer City Hall Council
Chambers located at 491 E Pioneer Avenue, Homer, Alaska, and opened with the Pledge of Allegiance.
PRESENT: COUNCILMEMBERS: BECK, FENSKE, KRANICH, LADD.
STAFF: CITY MANAGER WREDE
CITY CLERK CALHOUN
ABSENT: COUNCILMEMBERS: STARK, YOURKOWSKI (excused)
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 Council.
Mayor Cushing noted that Councilmember Kranich, per tradition, was invited to stay at the table for full privilege of comments.
There was no objection of the Council.
PUBLIC COMMENTS UPON MATTERS ALREADY ON THE AGENDA
Public comments upon matters on the agenda
There were no public comments.
OATH OF OFFICE
A. Oath of Office Administered to Rick Ladd and Dennis Novak as Councilmembers for three year terms each to expire October 2006.
City Clerk Calhoun administered the Oath of Office to Rick Ladd and Dennis Novak.
PRESENTATIONS
A. Special Presentation to Ray Kranich, outgoing Councilmember.
Mayor Cushing presented Ray Kranich with a plaque that read: Certificate of Recognition and Appreciation from the City of Homer to Ray E. Kranich, Sr. Councilmember October 1997 to October 20, 1998; Councilmember November 1999 to October 20, 2003; Port/Harbor Commissioner 1988 - October 1997; Road Standards Committee May 11, 1998 - October 20, 1998;
In 1998 recognized for being an advocate for the Port and Harbor and for attention to Budget and Document Detail. Renowned for - Ear to whistle blowing,
Eye to Detail, Nose for smoking guns, Hand and Heart for compassion, Broad Shoulders, Stance of Patience, Words of steel tenderized by sincerity and
Love of Life in Homer.
COMMENTS OF THE AUDIENCE
Audience comments upon any matter.
Merlin Cordes, speaking as a tax paying citizen of Homer, addressed the Council regarding the loop hole in the Kenai Peninsula Borough sales tax code and
apprized Council of the loss of sales tax revenue due to this loop hole. He strongly recommended that the Council urge the Borough to close that loop hole
in the sales tax code. Mr. Cordes emphasized the need for these revenues for the City of Homer and Borough School District with the tight budgets. Mr.
Cordes reported that the City of Homer lost $72,322.00 in revenue, in 2001, noting that this has been going on for approximately fourteen years which
means a number of $1,012,000.00 and that the City of Homer has missed in revenue about $640,000.00 and to the school district about $368,000.00. He
listed some of the needs that Homer has been discussing such as a ladder truck, animal shelter, library, recreational issues and numerous other
improvements. He also listed some of the needs in the school district such as teachers and classes, which have been recently cut. Mr. Cordes commented on
some of the losses in revenue to the City and reemphasized the need to capture these lost sales tax revenues and how this sales tax loop hole has benefitted
the Charter Boat Industry. He suggested that the Council, also, consider raising the limit on maximum sales tax, which is currently on the first $500.00 of
sales, or $27.50 for the City and Borough tax.
COMMENTS OF THE CITY ATTORNEY
City Attorney Tans was not present.
COMMENTS OF THE CITY CLERK
City Clerk Calhoun had something from the staff for Mr. Kranich.
COMMENTS OF THE CITY MANAGER
City Manager Wrede stated that he would miss Mr. Kranich and as the new guy on the block has really appreciated Mr. Kranich's help, assistance and
support along the way. Mr. Wrede stated that he looks forward to working with Dennis Novak and encouraged Mr. Kranich to hang around.
COMMENTS OF THE MAYOR
Mayor Cushing thanked Merlin Cordes for his talk. He noted that at the last meeting Council discussed with the City Manager possible revenue enhancement
things such as fish tax, severance tax, head tax on passengers going out over the harbor, and about those who put their boat in the harbor for a day and take
it back out. He asked the City Manager to add this sales tax loop hole to his list, and voiced concern that raising the maximum sales tax limit might drive
more buyers up the road. Mayor Cushing commented on the Coal Bed Methane issues and asked if the Council wants to do something or if the Council
cares to follow the MatSu Borough lead on asking the state to review the procedures for these leases.
Council asked for more information and for what is actually being asked of the state by MatSu Borough. The biggest concern expressed was regarding
impact to the watershed, to the springs and to those who have well water. There was some mention of the compressor noise issues. It was noted that this is a
statewide concern. Council voiced a desire to weigh in on House Bill 69, as suggested by the City Manager. Lease procedures and the intent of the
procedures used was a concern. Council asked for some scientific findings or research since it is unclear as to how intrusive or exclusive this process is and
that there are a lot of unknowns.
The Mayor and City Manager suggested at least a letter be sent to the Department of Natural Resources (DNR) to encourage the state to continue to review
their leasing procedures. They noted that Council may adopt a Resolution or Ordinance, as other communities have done.
Mayor Cushing congratulated Ray Kranich for his service, repeated what he said to him the other night about Monday nights coming and going and that Mr.
Kranich will be at Caribou Lake, across the Bay with a nice fire going with a bunch of friends and will just be able to sit back and be guaranteed that break
that the rest often dream about.
COMMENTS OF THE CITY COUNCIL
Former Councilmember Kranich commented that he feels that he gave a nice rendition, at the last meeting, of his thanks to the community for allowing him
to serve and the pleasure that it has been to serve as well as noting some of his frustrations. He stated that he did leave out a real vital group of people that
he has served with over the years. He commented that he had mentioned the past and current Councilmembers that he has served with over the years and
that it has been frustrating and that all in all it has been a pleasure. Mr. Kranich emphasized that the City has a fantastic staff, noting that the ones Council
works most closely with are the City Manager and the City Clerk's Office. He noted that while City Manager Wrede has been here only eight months it has
been a pleasure to serve with him, he has been a breath of fresh air to the City, to the Community, to this organization. Mr. Kranich stated that his heard
nothing but positive comments about City Manager Wrede's interaction with the community citizens. Mr. Kranich noted that since 1988 he has worked with
several different City Managers who all had strong points, good points and were all here for the betterment of the City during their tenure. While there was
frustration with some of the City Managers in certain points along the line there were also feelings of reward in working with them. He stated that the rest of
the staff, especially the City Clerk's Office, that the Council works with on an regular basis are outstanding. To the City Clerk he stated, "Mary, you have an
outstanding staff and yourself. It has truly been a pleasure working with you." He commended all the other City staff that he has ever worked with and that
they have always bent over backwards to get the information he has requested in a timely manner. He stated that he is sure that, by and large, any member of
the public is treated, by staff, the same. He stated that the residents of the City, the tax payers, can feel that the City has a very dedicated staff, that is to be
highly commended and highly acknowledged and that he wants to do this at this point in time. Mr. Kranich emphasized that without the City staff there
would not be a City government, if there is not an efficient staff to carry out the policies and decisions the Council does there would not be a functioning
government. Homer has a functioning government and all thanks to the staff.
Mayor Cushing interjected that this is an easy one to agree with.
Councilmember Fenske asked, so that Ray Kranich would not have to wait to the next meeting, what words of wisdom he has as far as services that should
be cut or revenues that should be sought.
Ray Kranich stated that he would wait until he sees the new budget.
Councilmember Novak stated that he is happy to be here, that he looks forward to making a difference, and making decisions that are the best decisions
possible for Homer. He stated that this is the point here, to do what is best for Homer, to move forward on the issues at hand and that this is what he hopes
to do.
Mayor Cushing welcomed Councilmember Novak.
Councilmember Beck first of all thanked Ray Kranich, noting that she expressed her sentiments to him last week, that she really appreciates the sense of
history that he has brought to this group and that she does not know who is going to fill his shoes, therefore, he might just have to come back and rattle
Council's cage about historical notes. She commented about his eye for detail, that she has both been irritated and appreciative of it and encouraged him to
never stop doing this and that it is really important. She thanked him for his years of service. Ms. Beck welcomed Councilmember Novak to this group, that
she is really looking forward to working with him, noting that she has already had a couple of interactions with him, that it feels really good and welcomed
him on board.
Councilmember Ladd welcomed Councilmember Novak and that he looks forward to working with him on all of the issues in front of Council. He
commented that the largest issue in front of the Council right now is the budget. Mr. Ladd thanked Merlin Cordes for his comments and for being involved,
unlike some of the other folks who come in and complain, Mr. Cordes has come forward and made some suggestions, which is a positive source of
information. He relayed how Finance Director Baugh perceives this issue in being the only one from Homer who testified before the Borough regarding the
sales tax issue. Mr. Ladd agreed that there are some dollars there that need to be looked at as well as some other avenues of resources for revenues. He
reiterated Councilmember Stark's comment that the Council has to start figuring out the criteria and how to look at the budget. Mr. Ladd suggested maybe
using Maslow's, the hierarchy of need, basic needs of food, clothing and shelter. This is where the City needs to start and work outward to ensure that the
City's basic needs are met and that the budget is balanced. He reiterated appreciation to Ray Kranich for his insight, knowledge and understanding that he has
provided this Council over the years. He stated that since he has been on the Council, three years, Ray Kranich has opened up the Council's eyes to other
avenues, which is what this Country is all about, having different perspectives. Mr. Ladd said that he looks forward to working with Ray Kranich in the years
to come.
Councilmember Fenske made one last comment about a few years ago when the Council was accused of being a gang of seven and that since he as been on
the Council that has not been the case, having had diversified Councils. He stated that Ray Kranich's diversity was very unique.
Councilmember Kranich interjected that he does not even know how to play poker.
ADJOURNMENT
There being no further business to come before the Council the meeting was adjourned at 7:57p.m. The next Regular Meeting is scheduled for Monday,
October 27, 2003 at 7:00 p.m. The next Committee of the Whole is scheduled for Monday, October 27, 2003 at 4 p.m. A budget worksession is scheduled
for Monday, October 27 at 5:30 p.m. The meetings are scheduled to be held in the Homer City Hall Council Chambers located at 491 E. Pioneer Avenue,
Homer, Alaska.
__________________________________
MARY L. CALHOUN, CMC, CITY CLERK
Approved: