Session 04-25, a Regular Meeting of the Homer City Council was called to order at 7:00 p.m. by Councilmember Yourkowski 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, McLAY, NOVAK, STARK, WYTHE, YOURKOWSKI..

STAFF: CITY MANAGER WREDE

CITY CLERK CALHOUN

PUBLIC WORKS DIRECTOR MEYER (8:39 p.m.)

ABSENT: MAYOR: Hornaday (notification of absence)

The Council met as a Committee of the Whole from 4:04 to 5:30 p.m. Agenda items included a Budget Worksession with a General overview presented by the City Manager and Finance Director with the beginning of a General Fund review, discussion of regular agenda items, specifically the Spit Parking Plan.

Councilmember Yourkowski welcomed the new Councilmembers.

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

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 with the additions of the City Manager's report and deletion of Ordinance 04-52 on the Consent Agenda pursuant to City Manager Wrede's confirmation that Planning requests Ordinance 04-52 to be deleted.

PUBLIC COMMENTS UPON MATTERS ALREADY ON THE AGENDA

Public comments upon matters already on the agenda with the exclusion of Public Hear Items - Ordinance 04-49 Accepting and Appropriating an Alaska Department of Community and Economic Development Community Advocacy, Designated Legislative Grant, 05-DC-052, in the Amount of $130,000.00 for the New Homer Animal Shelter Project.; and Ordinance 04-50, Accepting and Appropriating an Alaska Department of Community and Economic Development, FY 05 Mini Grant Assistance Program Grant in the Amount of $30,000.00.

Craig Forrest, Commodore, Homer Yacht Club submitted written public comment on the proposed Spit Parking Plan in time to be included in Council's packet.

John Velsko stated that he is happy with the Spit Parking Plan going the current direction, adding that he had thought the previous plan was biting off more than the City could chew. He commented on Resolution 04-91, Sterling Highway enhancement, that he doesn't think that there has been enough public input into the Resolution and asked the City Council to schedule more public hearings so the public can weigh in on any changes to the Bypass area. He noted that this year more than 11 million pounds of halibut, 2 million pounds of cod and 7 million pounds of salmon were trucked off the Spit via the Bypass, and thousands of tourists use this route as a quick and efficient means to get to the harbor with boats in tow. He stated that the City actively promoting the Deep Water Dock to Northern Dynasty, if this come to fruition, will mean even more truck traffic. He said that he just questions if it is in the City's best economic interest to turn its only truck route, to the economic engine that drives the City, into a pedestrian park/boulevard. He voiced an understanding of DOT's reluctance to lower the speed limits and to install crosswalks on the Bypass, because DOT remembers when this road was designed as a commercial route to and from the Spit. He told the Council it would be nice if they could find another commercial route to the Spit. He recalled the selling of the Bypass was that it would be an easy access off and on the Spit. He voiced his opinion that just because there is a problem on that road now, from past City Planning allowing all of that development to take place, is no reason to exacerbate it by turning that thing into a park. He encouraged recognition of the need to keep traffic flowing. He suggested that if the speed limit is going to be lowered to 25 mph the truck drivers need to weigh in on it, adding that more public hearings are needed.

Craig Forrest commented on the Spit Parking Plan, advising that he is no longer a City resident and that he has been using the Homer Harbor off and on since 1965. He reported that he has had a boat in the harbor since 1977, worked in and out of the harbor from 1977 to 1996, and is pretty familiar with the harbor. He informed the Council that he is the Commodore of the Homer Yacht Club, a fairly good sized user of the Homer Harbor with well over 100 members, that they have 26 annual boats and some semi annual and less than annual boats that use the harbor. He informed the Council that they are asking to be allowed, through public hearing at the very least, to have some input into the planning for the parking at the harbor. He told the Council that it was a surprise that this came up at the last Council meeting, especially since the harbor bills had just been paid on October 1st. He voiced his opinion that there should have been ample opportunity to notify harbor users regarding the Spit Parking Plan.

Hal Smith, City resident and harbor user, stated that he has had a slip in the harbor continually since 1988 or 89. He advised the Council that he wrote each of them a letter today expressing his thoughts on the Spit Parking matter and voiced his hope that this had reached their packets in some way, shape or form. He voiced basic agreement with Mr. Forrest, adding that a public hearing might be too soon of a process. He suggested that the plan go back to planning, back to the Port and Harbor Commission, that there are a whole lot of harbor users and stake holders to provide input and stated that he cannot believe that there are not a whole lot more people here interested in figuring out what the Council is planning. He commented that the things that have been presented in the news papers sound like too radical of a change and that it is going to effect all of the regular harbor users way too much.

Patti Boily, City resident with boat in the harbor for 27 or 28 years, commented on speaking at the last Council meeting about the Spit Parking Plan. She emphasized that the City has to start recognizing that the parking is not egalitarian and that there are people that are paying more than their share, who should be getting some perks. She stated that her big thing is that if you pay for a slip in the harbor you ought to get a sticker that gives you parking on the Spit without any hassling and if your boat is out of the harbor and your car is on the Spit you should not have to worry about it being towed away. She commented that if there are going to be iron rangers or any kind of a payment system that stickered cars should be able to park. She told the Council that they have to allow the boat users, the user group that is paying for the harbor, to have some recognition for what they are paying. She reiterated her comments from the last meeting regarding what she pays, the inadequate handicap parking and about her husband being handicapped and what it takes for them to use the harbor. Thanking the Council she said that she would be back at the next public hearing.

Kornily Polushkin, student at Vozsnesenka and spokesman for his classmates in attendance, stated that he and his friends are against noxious weeds, one of the items on Council's agenda. He advised that he and his classmates, from their Government Class, are present tonight to observe local government proceedings at a public meeting. He voiced their appreciation of this opportunity and that they are proud to be a part of the great Homer Community. He thanked the Council.

John Velsko, was granted permission to speak a second time and addressed the Council on the Spit Parking. He commented that a couple of days ago he agreed with a lot of the sentiment already expressed on the Spit Parking Plan. He advised that when he came to the worksession today, the Committee of the Whole meeting, that, if he understands it correctly, the plan is only about charging for ramps 1, 2 3 and 4 at the areas that are currently limited parking. He suggested that the Council make this clear to a lot of people and not adopt the plan right now until there are some public hearings. He stated that there are some issues with regard to paving and parking in the area of the Harbormaster's Office and the Salty Dawg. He expressed his opinion that it is unfair to charge only half of the harbor to park to get to their boats. He voiced his belief that everyone can agree that, with the location of the fish cleaning tables, it is just atrocious to get to the harbor and so charging for those short term spaces will alleviate some of that congestion. He noted that there is a misconception that the City is talking about implementing this plan all at once. He thanked the Council.

Ray Kranich, resident of the City, stated that he is glad to see the Spit Parking Plan as phased implementation. He commented about speaking with the Port/Harbor Director, Steve Dean, that in the best case scenario, for four months, the parking would generate a maximum revenue of $60,000.00, $15,000.00 per month, and that is if the 100 spaces are full for 30 days out of the month. He noted that there would be two employees hired at a projected zero cost, which he believes to be in error. He stated that he was glad to see the elimination of the 30 minute, one hour and two hour parking and that this was changed to all day parking, which will be a nightmare in itself. He voiced his opinion, that the lots are going to have to monitored a minimum of once in the morning and if a car has been there on the second morning it will have to go away. He emphasized that in this plan there is no consideration for stake holders and, in addition to echoing Mrs. Boily's comments, added that there is also nothing about season permits. He stated that it appears that it still does not address the area from Happy Face to the Fish Dock Road. He responded to Councilmember Stark's comment during Committee of the Whole that parking in the over slope area would have to be paved and, although this would create more parking, some spaces would be lost to the leased places and businesses having to have some parking. He told the Council that if it were his money he'd take the $200,000.00 for paving and put it toward the corrosion control on the Deep Water Dock and emphasized that this needs to be done now, not next year. Mr. Kranich voiced his opinion that it is a travesty to not take care of the Deep Water Dock corrosion problem. He briefly commented on the Bypass/Sterling Highway enhancement, echoed Mr. Velsko's comments, stated that he is opposed to any reduction in the speed limit and urged enforcement of the 35 mph, which would, in his opinion, result in a reduction of speed. He thanked the Council.

Diane Martin, resident, inquired regarding eminent domain proceedings for the Hillside Acres Water and Sewer District Easements, Resolution 04-93 Agenda Item 14.C.

She was advised by Councilmember Yourkowski that this is not the time for a questions and answers, and encouraged her to meet with the City Manager later on and to go ahead with her comments.

Ms. Martin voiced concerns regarding the Hillside Acres LID, that it is not a part of the district wherein she is located and that the City is looking for an easement across her property to accommodate the Hillside LID. She told the Council that she just wanted to know how this was going to effect her with eminent domain and that she has some questions on how the City can change a boundary in a special assessment to include additional properties or if that is what the eminent domain is doing. She advised that she did send a letter to Carey Meyer addressing the letter she received from him. She noted that the deadline in the letter from Carey Meyer was October 18th, that it was put in the wrong Post Office Box and that the Post Office did not discover this until several days later. She reported that this left her a short time to respond and that she took her response to Public Works on October 18th and found that Public Works was closed.

RECONSIDERATION

None scheduled.

CONSENT AGENDA

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

Councilmember Stark voiced a request that Ordinance 04-51 be deleted and forwarded to the next Committee of the Whole session.

A. Homer City Council unapproved meeting minutes of October 11, 2004 Regular Meeting and October 18, 2004 Special Meeting. City Clerk. Recommend approval.

B. Ordinance 04-51, Of the Homer City Council Amending Homer City Code Section 17.04.030, Improvement Districts--Formation and Assessment and Section 17.04.050, Improvement Plan--Objections and Revisions. City Clerk. Recommend introduction for first reading and conduct public hearing on November 22, 2004 and second reading on December 13, 2004

Councilmember Yourkowski stated that this was deleted.

C. Ordinance 04-52, Of the City Council of the City of Homer Amending Homer City Code 21.48.060 9(h) Landscaping and 21.61.105(l)(7), Landscaping. Planning. Recommend introduction for first reading and conduct public hearing on November 22, 2004 and second reading on December 13, 2004

Deleted per request approved under Agenda Approval.

D Resolution 04-89, Of the Homer City Council Amending Council's Operating Manual, Section 1. Introduction, Office of the Mayor, Item 1. Regarding Seating at the Council Table. Stark. Recommend adoption.

E. Resolution 04-90, Of the Homer City Council Superceding and Replacing Resolution 03-110(A) and Extinguishing the Memorandum of Understanding between the City and the Homer Hockey Association Regarding Construction of the Proposed New Ice Rink. City Manager. Recommend adoption.

F. Memorandum 04-141, from City Clerk, Re: Authorizing Administration to Send a Letter of Endorsement and Support of Kenai Peninsula Cooperative Weed Management Area and Associated Committee Work. Recommend approval.

BECK/NOVAK - MOVED FOR THE APPROVAL OF THE CONSENT AGENDA AS READ, NOTING THAT ORDINANCE 04-51 WILL BE DISCUSSED AT THE NEXT COMMITTEE OF THE WHOLE MEETING. (November 22, 2004.).

VOTE: YES: NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

VISITORS

None scheduled.

ANNOUNCEMENTS/PRESENTATIONS/BOROUGH REPORT/COMMISSION REPORTS

None scheduled.

PUBLIC HEARING(S)

A. Ordinance 04-49, Of the City Council of Homer, Alaska Accepting and Appropriating an Alaska Department of Community and Economic Development Community Advocacy, Designated Legislative Grant, 05-DC-052, in the Amount of $130,000.00 for the New Homer Animal Shelter Project and Authorizing the City Manager to Execute the Appropriate Documents. City Manager. Finance. Fiscal Note: Revenue and Expenditure Project No and Account: 151-728, $130,000.00. (First Reading October 11, 2004, Public Hearing and Second Reading October 25, 2004.)

There was no public testimony.

NOVAK/BECK - MOVED FOR THE ADOPTION OF ORDINANCE 04-49 BY READING OF TITLE ONLY.

Councilmembers Novak and Beck commented that the Animal Shelter looks like it is getting a roof just in time, expressed pleasure and relief that it will be under cover before the snow flies and emphasized that this project is very exciting. Senator Seaton was thanked for getting this additional appropriation, of the $130,000.00, approved.

VOTE: YES: NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

B. Ordinance 04-50, Of the City Council of Homer, Alaska Accepting and Appropriating an Alaska Department of Community and Economic Development, FY 05 Mini Grant Assistance Program Grant in the Amount of $30,000.00, Appropriating the City Match of $11,500.00, and other Miscellaneous Contributions, to Fund a Feasibility Study for a Convention Center and Authorizing the City Manager to Execute the Appropriate Documents. City Manager. Finance. Fiscal Note: Revenue and Expenditure Project No. and Account 151-786 for Grant and Miscellaneous Contributions and City's Match from General Fund, Fund Balance for expenditure amount of $49,340.00. (First Reading October 11, 2004, Public Hearing and Second Reading October 25, 2004.)

There was no Public testimony.

McLAY/BECK - MOVED FOR THE ADOPTION OF ORDINANCE 04-50.

Discussion points.

• Dissatisfaction expressed that the City is consistently spending money on dead end studies.

• This money could be better spent elsewhere to accomplish something.

• Who is the proposed builder?

• Does the Council have input on the scope of the feasibility study?

• Who determines the scope of the study?

• Council would like to see the RFP.

• Government is not supposed to be efficient it is supposed to be representative and accessible. Government has to comply with all the laws and restrictions of the state, federal government, borough and City Ordinances. It is really quite cumbersome and the reason is to protect the public interest so that everybody is sure that the right thing is being done.

• Is the RFP getting the cart before the horse?

• Council does have the final say, as a group, on award of the RFP.

City Manager Wrede responded that the feasibility study includes the questions regarding the builder and owner of the Convention Center. He noted that it is not clear if it is in the best interest of th City to own this facility or if it should be in private ownership, interjecting that this is one reason why the City was looking for contributions/matching money from parties who might be interested either to run the facility themselves or because the entity will benefit from this facility. He commented about the scope of work and that in the grant application the City said how the grant would be used, in general. He elucidated the RFP process and award process. He briefly reviewed the history of the Convention Center and the whys of doing a feasibility study. City Manager Wrede stated that it is a little out of the ordinary for an RFP to be sent to the Council before it is sent out. He advised that the RFP has been written and that proposals are due by December 1st. He advised that the RFP was prepared to meet granting and advertising deadlines set by the granting agency and that the RFP may be amended or withdrawn. He explained the selection committee process.

VOTE: YES: NOVAK, BECK, WYTHE, YOURKOWSKI, STARK.

NO: McLAY.

Motion carried.

ORDINANCE(S)

None Scheduled.

CITY MANAGER'S REPORT

A. City Manager's Report (Updates and follow up; October Employee Anniversaries John Browning HPD 26 years, Elaine Grabowski HVFD 21 years, Terry Overton PWD 20 years, Maureen Moore PWD 3 years, Richard Klopp PWD 2 years and Pete Coots Library 1 year; Public Works Project Progress Report; Certificate of Appreciation to the Police Department; Article on Kotzebue Jail; State Transportation Improvement Program (STIP) Comments; Governor Murkowski's press release on Gas Pipeline; Kachemak Bay Campus Reception for New Chancellor; and Status on Library Fundraising. )

Status of the Library Project and funding were reported. There will be a joint session with the Library Advisory Board and the Council at the next Committee of the Whole (November 22, 2004.) Concerns were expressed regarding delays in construction of the Library Project resulting in additional material and labor costs. The possibilities for bidding the entire project and using the alternate method for the less essential portions of the project, such as landscaping, were mentioned as the best option with the current funding situation, rather than delaying the project and taking the chance of costs increasing. It was noted that this is a routine procedure so that, depending on funds and bid amounts, alternates may be added or deleted from the project. It was noted that it is in the City's best interest to stick to the schedule and have the architect include options in the bidding. alternates being deleted can be added later. Although a bit risky the project is continuing to 95% design, which shows potential granters that progress is being made, that the project is staying on schedule and shows the City's confidence level to keep moving with the architect. The bid date is February. It is not unusual to reject bids if the bids come in too high. Comment was made that if the Library Project does not proceed this is the same as when the City paid for a 65% design on the expansion of the Old Library to the tune of $75,000.00, emphasizing that those plans were set aside. The Library Project either needs to move ahead or stop spending money. It was relayed that the Library Advisory Board does not want to scale down the project any more, that they feel that the project has already been reduced significantly and to change it more would change the form and function of what they have been working on for quite awhile. However, any time funds are insufficient, project reductions have to be one of the options on the table.

On Monday, November 22, 2004, the first hour of the Committee of the whole will be with the Library Advisory Board and the ensuing half hour on Ordinance 04-51, Local Improvement District process.

The Manager and Council discussed the STIP and specifically the Sterling Highway nomination in Resolution 04-91. The STIP will be discussed at a future Committee of the Whole. Scoring and criteria for scoring were mentioned. A 10% local match is now required for STIP projects, any time the City contributes more to a project that project scores higher and any time the City is willing to take over ownership the scoring goes higher. Council should have a discussion regarding road priorities and matching funds. The Sterling Highway is more than a Bypass. The possibility of using HARP (Homer Accelerated Roads Program) funds for the 10% match has not been determined and state roads are not on the list for use of HARP funds. The City could go back to the voters and ask if HARP funds could be used for the 10% match especially and specifically if the City takes over the road. Mission Road and Old Town road were mentioned as possibilities for the City taking over ownership. Resolution 04-91, nominating the Sterling Highway (Bypass area) for the STIP. Specifically mentioned was to discuss the Lake Street intersection on the Sterling Highway as part of Council's future discussion on the STIP.

B. Bid report. ( Surplus equipment bids were opened on Friday, October 22nd after 2 p.m. 126 bids were received. Request for Proposals for Professional Consulting Services for a Homer Conference Center Feasibility Study - Proposals are due to the City Clerk by 4 p.m. December 1st.)

C. Records Report (Report of obsolete records destroyed.)

D. Game Report. (Amended 2004 Game Applications filed.)

COMMITTEE REPORT

A. Town Center Development Committee Meeting Notes of September 30, 2004, Meeting of October 21st. The next meeting is scheduled for Thursday, November 18th from 5:30 p.m. to 8 p.m. at the Chamber of Commerce.

Councilmembers and Committee members Novak and Beck reported on the October 21st meeting and about the schedule for the final report.

• Working on refining the vision and mission, goals and guiding principles of the Town Center to provide some criteria and some ground rules and ideas for future planning. Such as different types of parking guidelines that have been used in other cities and other centers. Criteria desired for types of green space, parks and street alignments with access from all four directions.

• Development of the area and shared parking. Parking requirements are often at issue. This is a future action item.

• Anchors are important when talking about the economic viability of making a financially feasible development.

• The Committee is formulating a package of recommendations that will be submitted to the Planning Commission, as mandated by the City Council, by the end of December, 2004. The Commission will further work on this and have public hearings. Deadline is January 2005. It will then be forwarded to the Council.

B. Road Standards Committee meets October 26, 2004 at 6:30 p.m. City Hall Council Chambers.

PENDING BUSINESS

None scheduled.

NEW BUSINESS

Councilmember Yourkowski called for a break at 8:08 p.m., reconvening the meeting at 8:24 p.m.

A. Memorandum 04-142, from City Clerk, Re: Selection/Appointment of Mayor Pro Tempore.

YOURKOWSKI/NOVAK - NOMINATED ROSE BECK.

McLAY - NOMINATED DOUG STARK.

Nominations were Councilmember Beck and Councilmember Stark. The results of the secret ballot voting were 3/3.

BECK/McLAY - MOVED TO TABLE THE VOTE FOR MAYOR PRO TEM TO NEXT MEETING. (November 15, 2004)

VOTE: YES: WYTHE, YOURKOWSKI, STARK, NOVAK, BECK, McLAY.

Motion carried.

B. Memorandum 04-143, from City Manager, Re: Setting a Public Hearing for November 22, 2004 on the Spit Parking Plan.

Recommendation: Authorize the administration to put the plan out for public review and comment and schedule a public hearing for the November 22 meeting.

McLAY/STARK - MOVED TO PUT ON THE TABLE MEMORANDUM 04-143.

It was agreed that it is very important for the public to be brought up to speed with the Port/Harbor Commission thinking and there is a need for the public input into the plan. It appears that the public is not clear that this is a phased plan and that there will be additional public hearings with the Port/Harbor Commission on the additional phases and that this is an on going process. It was emphasized that the Port/Harbor Commission will be open to discussion. Phase I is primarily concerned with paving the areas in front of ramps, 1,2, 3 and 4, designated parking spaces and installing iron rangers as a primary focus.

VOTE: YES: NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

RESOLUTIONS

A. Resolution 04-91, Of the City Council of Homer, Alaska in Support of the Proposed Sterling Highway Enhancement Project and Authorizing the City Manager to Nominate it for Inclusion in the 2004-2006 Statewide Transportation Improvement Program (STIP). City Manager.

NOVAK/STARK - MOVED FOR THE ADOPTION OF RESOLUTION 04-91 BY READING OF TITLE

Comments included the following:

• Council discussed this earlier in the evening.

• Initiates the follow up on the letter already written by the City Manager on the STIP list.

• Open to additional future discussion with regard to what the City might want to propose for plans on the Bypass

• Will also take into consideration the Transportation Study that will be done on Lake Street and add that to the City's proposal

• Any proposed shared cost would come back to the Council for approval.

• It is less likely that there would be a shared cost on this project.

• If the City is willing to contribute something the project would probably score higher.

• The Sterling Highway is part of the National Highway System.

• The money included in the Transportation Bill for enhancement projects keeps getting smaller and smaller every year.

• Since there is a surplus with the higher oil prices, some of the projects might go.

• Scenic Highway project is on hold, so those monies, that would have been complimentary, are on hold as well.

• Proper name is Sterling Highway.

• Transportation Study to be done November/December.

City Manager responded to inquiry about private corporation contributions toward enhancement that he does not know how local match is defined. He advised that his letter to DOT is included in the Council's packet and that, mostly, it is to take into account what the Traffic Study shows: Traffic control at several intersections, DOT is going to conduct public hearings in the community to figure all this out. He advised that, generally, the letter includes upgrades to sidewalks, better signage for pedestrian crossings, better lighting, and landscaping just to make it look nice since it is the Gateway to Homer.

VOTE: YES: NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

B. Resolution 04-92, Of the City Council of Homer, Alaska Designating Signatories of City Accounts and Superseding any Previous Resolution so Designating. City Clerk.

STARK/McLAY - MOVED RESOLUTION 04-92.

Since a Mayor Pro Tem has not been selected it would be appropriate to postpone this Resolution.

YOURKOWSKI/NOVAK - MOVED TO POSTPONE RESOLUTION 04-92 TO THE NEXT REGULAR MEETING.

There was no discussion.

VOTE: YES: NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

C. Resolution 04-93, Of the City Council, of Homer, Alaska Authorizing Eminent Domain Proceedings for Hillside Acres Water and Sewer District Easements. City Manager. Public Works. City Attorney.

STARK/BECK - MOVED FOR APPROVAL OF RESOLUTION 04-93 BY READING OF TITLE.

Discussion included the following:

• •It was noted that this LID has been delayed and it is time to get on with it.

• •At some point a final offer is made, then it has to move ahead and do what is being done here.

• •The public interest demands this.

• •This is responsible Council action in the best public interest.

• •There were seven parcels and six property owners, not all six parcels have dwellings. There are now five parcels and four property owners.

• •If this is adopted will the property owners be paid what they were offered for the easement or how does that work.

• •Passage of this may promote more property owners to sign.

• •One of the concerns of the property owners that have not signed is that they do not need the water or sewer, but if the water and sewer goes across their property they are required to pay for the assessment whether they need it or not and whether they hook up to it or not. This can create a financial burden on people who do not have a need.

• •The staff thoroughly reviewed this matter and determined that this is far and away the best way to serve the overall LID and to not approve this would, basically, cause a lot of people, who want to proceed ahead with the LID, to be denied the service.

• •Is there a deferred assessment option built into this LID?

Public Works Director Meyer responded that the City has determined the fair market value, which is explained in the document and to date the property owners have not accepted that offer. He advised that the right of eminent domain requires the City to pay fair market value and the bottom line in most of these cases is that the Judge will determine what is far market value. He stated that he does not know what promotes property owners to sign, however, when this decisional document was sent to the property owners two signed. Mr. Meyer concurred that there is always a dilemma of balancing the public interest and the interest of the property owners who do support solving the health problems in their neighborhood against the rights of individuals not to be affected by the project. He advised that this LID is no different than any other LID:

• •The assessment is not due and payable immediately.

• •The City spreads the assessment over a twenty year period.

• •Hillside acres is the last LID to get 50% of the cost of the project paid for by the City at this time. ⁽¹⁾

• •The City has acquired a 2.5% loan for property owners to utilize.

• •The City has tried to do everything it could to make sure that it is less financially onerous as possible.

• •There are other provisions, true for any LID, such as deferred assessment for a senior living on a lot. ⁽²⁾

• •There are some provisions in the LID process and in the way the City has gone about doing this that does try to speak to the financial issues and to make it as affordable as possible.

VOTE: YES: YOURKOWSKI, STARK, NOVAK, BECK, WYTHE.

NO: McLAY.

Motion carried.

COMMENTS OF THE AUDIENCE

Audience comments upon any matter.

Patti Boily commented about the Road Standards and the whole municipal LID thing, emphasizing that she would like the City of Homer to be consistent. She advised the Council about the following:

• They built a house on Clover Lane in1977, that at that time it was a dirt track, and had City water.

• This area had large lots.

• Then came City sewer, which they all had to pay for.

• A lawyer from Anchorage wanted to subdivide some lots into 22 mobile home lots and, fortunately, the Planning Commission listened and the wiser heads prevailed.

• Then there was paving, which they all had to pay for.

• A gentleman did some subdividing at the end of their road and the Planning Commission and Council said okay and required him to put in a City maintained road. She pointed out that there is no road and that there is an occupied house.

• Construction of East Road, windfall of top soil. Trucks delivering Top Soil using Clover Lane and really tearing up Clover Lane. Advised that she made inquiry to Public Works about who was going to fix the road, that she never got a call back, never saw anyone come and inspect the road, no one was telling the truck drivers that this is a little neighborhood. Pointed out that no dog or little kid would have stood a chance because "these guys were really cookin' down that road".

Mrs. Boily stated that on the one hand there is progress, which is a good thing in some ways, at the expense of the quality of life of people living in an established subdivision. She informed the Council that she brought this up to the Planning Commission when her neighbor across the street wanted to subdivide his lot into three lots and that she kept going back to the question about the quality of life. She stressed that the people who invested in the City neighborhoods did so because of a life style that they were trying to pursue. She asserted that now that the City sewer, water and streets are in it seems like everyone wants to get a piece of the action. Mrs. Boily stated that as soon as someone says something about this they are considered as against progress. She told the Council that she is not against progress, but really liked it when Clover Lane was a quiet little lane and that it looks like a boulevard now and even has a double yellow line down the middle of it, interjecting that it is a dead end. She reiterated that the City has to be consistent, when the City says someone has to do something that should be enforced and the neighbors should not be required to sign a complaint. She asked that the City remember that people moved here for a reason, quality of life. She acknowledged that when Clover Lane got sewer it was a health issue and there were a few people that did not want to pay, but overall everyone realized that if DEC condemns an area it is pretty obvious something has to be done. She wished good luck to the new Councilmembers and thanked the Council.

Leonard Wells, City resident and property owner, made a personal observation of the Sterling Highway with what he considers as stupid islands that have been put in. He stated that he considers these stupid because they were not put in, in the past and were not an obstacle for the snow removal process and that this winter the snow removal process will be interesting to watch. He wondered how well the snow plows are going to handle six inches to a foot of snow with not being sure of the island locations, how much damage will be done to the snow plows and to people's vehicle axles as the vehicles start to slide and hit the curbs in the middle of the road. He voiced his hope that the new City Council will take into mind, when doing the budget, that at the last election the library issue passed, and that, thanks to the City Council for not making it a revenue bond, it is a general obligation bond, there is nothing designated except the general account to take the payment of this. He noted that this was also done by the citizens when they were asked if they wanted to increase the sales tax, there was a fairly resounding, "No". Mr. Welles commented that he did notice that it looked like some of the funding may be eliminated, that the Council has done in the past, to the non profits and to the school, and that the funding may be reduced to the Pratt. He voiced his hope that the Council does make serious contributions to any of the not necessary allocation of funds like to the Homer Foundation and that things like maintenance of vehicles, purchases of new vehicles, and salaries are the first priorities in the budget and then if there are any projected funds left over on the first of January, then distribute those to activities like the Pratt and whatever. He continued, if there are not any funds then those entities can be told that if any money shows up later from the state government or other places and the entity still has a need the City will consider that need, rather than saying we'll give you some money because you need to figure your budget in January, we don't know what we're going to have and if there is some money left over we'll maintain our vehicles. He said he thought this is what was done in the past and that he thinks the funds should be put towards maintenance and that type of activity rather than any of the possible worthy and charitable activities and non profit organizations. He noted that even the Pratt has been going a long time and if they can't pay their own way, may be we should not be paying it, same with the public school district and others. He commented that if you have been at the public trough for a while and still need it then it should be up to a vote of the citizens as to whether taxes are raised to pay that, because everything Council has comes from taxes of one nature or another, unless someone donates to the General Fund. He commented that even though raising property taxers does not go to a vote, but it should be the citizen's choice to fund the Pratt not the Council's. He voiced realization that the citizens elect the Council, but he has never heard anyone say that they are running for City Council so that they can get money for the Pratt. He thanked the Council.

Ken Castner, resides at 196 Mountain View Drive and a Trustee for the Homer Foundation, stated that the Homer Foundation does not take any of the City's money other than to act as a pass through agent, the City has its own endowment and that this is balancing today's money against tomorrow's needs. He emphasized that they are trying to build an endowment for the community to go into the future, that they think this is far sighted not short sighted to do such a thing and past Council's have taken some money and started to build the City's endowment with the Foundation. He welcomed all new Councilmembers, stated that he appreciate's Council's public service and their willingness to stand for election, and wished them good luck in their future deliberations. He advised that he came down this evening, because he happened to turn the radio on about halfway through Mr. McLay's comments about the Library and that he heard Mr. Stark's comments that followed. Mr. Castner told the Council that he just wanted to say that as a person that is fully involved as a volunteer, both as financial contributor and a person who puts a lot of time into the new Library campaign, that no stone has been left unturned in trying to find private and foundation support for this project. He reported that they have really worked hard to find people, organizations and private businesses to make contributions to this new Library. He voiced concern with the statement that elements of the Library can be set aside as bid alternates, which may not be so simple since everything in the new Library has a constituency, that this Library has been being built for 25 years, that it is not a 25 month project and that it is being built to last into the future. He emphasized the importance of the gross square footage in order to support the community as it grows. He cited the landscaping as an example for an alternate in the bidding for perhaps a $160,000.00 savings, he noted that there are some people who are going to live and die on how that building is landscaped and on how it sets into the countryside. He commented on another example of going to the City Council to get them to ease up on some of the zoning requirements, because all of that stuff costs money. He interjected that the landscaping is one of the things that the City requires. He pointed out that there is a constituency for the zoning. He reported that they are trying to sell some of the amenities as a way to raise money, such as the fire place or the lobby area and informed the Council that they tried to find $100,000.00 to pay for that and if somebody writes the check for $100,000.00 they cannot very well take it away. He suggested that some of the alternates, that may be chosen, may have already been paid for or that the materials have already been procured or donated for that alternate. He thanked the Council.

Ray Kranich advised that he thought of one more item pertaining to the Spit Parking Plan that is not addressed and that is that City fees are set by Resolution and so adding parking fees is not any big thing; however, he inquired about the aspect of penalties and wondered if this would require a Code change. He inquired what would happen to John Doe Skipper if he is parked there for two days with only paying for one? Would his car still be there or be gone? Will there be little note on the car to say to pay? Will there be a citation that costs $50.00? He acknowledged that he voted for the location of the Library, to be built on the City owned lots ⁽³⁾ a beautiful location and that it is going to be a beautiful facility. He stated that he hates to see the community sit here and kind of have DTs because it cannot afford to buy a bottle of champagne when it has the money to buy a bottle of beer. He suggested that the 65% plans, that Councilmember McLay commented about, be dusted off and that these plans would put a 10,0000 square foot library in the community. He noted that those words are probably very unpopular with a lot of people, but being within the budget and what the City can afford needs to be considered.

Permission was granted to Mr. Wells to comment again.

Leonard Wells voiced a curiosity on the Spit Parking as to whether or not when somebody leases City property if they get an appropriate amount of parking space to go with that lease and if that has been considered in the parking plan. He inquired if the City has the right to collect any parking fees for privately leased property?

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 - absent. Councilmember Yourkowski wished Mayor Hornaday well.

COMMENTS OF THE CITY COUNCIL

Councilmember Stark commented on the problem of people subdividing their lots, that this reminds him of changes he has made in different subdivisions he has done, and that the latest subdivisions had covenants that prohibited subdividing. He stated that he has great faith that the State will put up reflective signs at each end of the traffic islands on the Sterling Highway for delineation for traffic and snow plowers. He clarified, regarding the Homer Foundation, that a number of years ago the City made the determination that, instead of giving money to the non profits every year, it would contribute to a fund that the Homer Foundation invested which would eventually fund, rather than the City, the non profits. He voiced surprise, regarding alternatives to the Library project, that someone would say the whole thing ought to be built, because this is what some people want. Mr. Stark noted that alternates and the deletion of alternates, due to lack of money, is a very common practice. He suggested that if the project was taken all or nothing and then there were insufficient funds, that then there would be no project. He stated that he made it clear during his comments that certain things in the library project would not be completed, such as landscaping, some furnishings or things that could be added later and that in this way there would be a library, which is what everyone anticipated and which the community will eventually have. He emphasized that he will not vote to raise the mill rate on property tax to fund the government of Homer, that he has full confidence that the funding issues will be solved, that there are a lot of bright people around the Council table and in the community and that there are different sources of funds out there. He shared his disappointment that the tax increase failed, because he had hoped that when the Council adopted it in August and sent it to the electorate that combined with it there would be a reduction in property tax. He state that, although it may be painful, the City can get along without increasing the mill rate.

Councilmember McLay stated that it has been an interesting evening. In response to Councilmember Yourkowski, Councilmember McLay advised that he was not expecting a whole lot and that he figured he would just come with an open mind. He noted that this is not the first Council meeting he has attended, that he has been at a lot of Council meetings sitting in the audience and that this is the first one that he has stayed through the whole meeting. He commented that this does not mean that he was not desiring to leave, because that came up two or three times. He relayed that it has been the start of a good learning experience and that he is going to draw from the experiences of Councilmembers. He told the public that he is representing them and therefore, wants to hear from them and that they are just going to do the best they can to make Homer the best place they desire it to be.

Councilmember Novak voiced agreement with Councilmember McLay, adding that, although not always the most popular, they all try to just make the best choices. He stated that he is not in favor of raising property taxes, that he is sorry the sales tax did not pass, and that the Council will find a way to make it work, although they may have to cut some things. He voiced his hope that all will still be here and that Homer will prosper.

Councilmember Yourkowski noted that Council did have an introductory budget worksession, that they were presented with a balanced budget, but at somewhat of an expense to future generations. He noted that the budget was balanced with depreciation money and that the Council has worked hard in the past to not do that. He voiced his hope that the Council can come up with some kind of reasonable solution to balance the budget and include depreciation. He voiced appreciation for everyone's patience with him tonight.

ADJOURNMENT

There being no further business to come before the Council the meeting was adjourned at 9:12 p.m. The November 8th meeting is canceled. A Special Meeting is scheduled for Monday, November 15, 2004 at 7 p.m. A budget Worksession is scheduled for Monday, November 15th at 5 p.m. The next Regular Meeting is scheduled for Monday, November 22, 2004 at 7 p.m. The next Committee of the Whole meeting is scheduled for Monday, November 22, 2004 at 4 p.m. All meetings scheduled to be held in the Homer City Hall Council Chambers located at 491 E. Pioneer Avenue, Homer, Alaska.

_____________________________________

MARY L. CALHOUN, CMC, CITY CLERK

City Clerk's Office, clerk@ci.homer.ak.us, 235-3130.

1. 50% property owner share of assessment.50% paid by the Homer Accelerated Water and Sewer Program.

2. 17.04.165 Alternative methods of payment--Deferred payments. Such as A property owner meeting certain requirements as hereinafter set forth, may defer payment of assessments, including principal and interest under the following conditions: Criteria for Eligibility. The property owner must: 1. Be at least sixty-two years of age within twelve months from the date of adoption of the assessment roll. 2. Have an annual family income that would qualify under the United States Department of Housing and Urban Development designation of lower income families adjusted for Alaska and the Kenai-Cook Inlet Region. 3. Actually reside within the boundaries of the property assessed on which is located only his permanent abode which is a single-family residence. 4. Own or have a life tenancy in the assessed real estate. 5. No real property may be exempted which the City determines, after notice and hearing to the parties concerned, has been conveyed to the applicant primarily for the purpose of obtaining the exemption.

3. Hazel Avenue.