Session 04-20, a Regular Meeting of the Homer City Council was called to order at 7:01.5 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.
Council met as a Committee of the Whole from 4:02 p.m. to 5:30 p.m. Agenda items: Local Improvement District
(LID) Process and the Regular Meeting agenda Items.
PRESENT: COUNCILMEMBERS: BECK, FENSKE, NOVAK, STARK, YOURKOWSKI.
STAFF: CITY MANAGER WREDE
CITY CLERK CALHOUN
ABSENT: COUNCILMEMBER: LADD (excused)
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 City Council with the following changes:
Councilmember Stark requested that Ordinance 04-45 be deleted from the agenda. (1)
Addition of Memorandum 04-136, from Port Harbor Commission, Input pertaining to Ordinance 04-48.
Informational AS 29.45.030 required exemptions, see subsection e. regarding $150,000.00 exemption. Letter from
Councilmember Ladd.
A request from the Administration for the deletion of Ordinance 04-47. During the Committee of the Whole the
Manager advised that the Ordinance was premature.
There were no objections.
PUBLIC COMMENTS UPON MATTERS ALREADY ON THE AGENDA
Public comments upon any matter except the public hearing items: Resolution 04-78 through 04-81the Alaska
Department of Environmental Conservation projects, Area-Wide Projects, Capital Projects/Legislative Request for
FY2006, and Capital Improvement Plan 2005 through 2010; andOrdinance 04-42, US Department of Homeland
Security Matching Grant of $36,000.00 FY 04 Assistance to Firefighters Grant, Appropriating the Sale of Surplus
Equipment of $7,500.00 for the Match and Purchase of Equipment.
Ken Satre, Homer citizen and also on the Homer Hockey Association Board, thanked the Council for the opportunity
to speak in support of Ordinance 04-48, for two reasons:
1. This Ordinance could offer up an opportunity or the assistance in the Homer Hockey Association being able to
locate a spot for the Ice Rink. This has been a long and arduous process and difficult. New locations where a rink
could be placed would certainly be advantageous for the community.
2. The addition of the locations in this Ordinance would be good for any and all youth and adult groups in the Homer
area. It just seems that any additions that the Council can make, in terms of opportunities, for the people to expand
their recreational options would be a good choice.
Mr. Satre stated that since this is a conditional use Ordinance that the Zoning and Planning Commission, and the City
Council as well, would continue to have oversight on whatever requests are made, therefore it is not throwing caution
to the wind. He voiced his hope that the Council would consider these comments in support of Ordinance 04-48.
RECONSIDERATION
None scheduled.
CONSENT AGENDA
(Items listed below will be enacted by one motion. If separate discussion is desired on an item, that item may be
removed from the Consent Agenda and placed on the Regular Meeting Agenda at the request of a Councilmember.)
A. Homer City Council unapproved meeting minutes of August 23, 2004 Regular Meeting. City Clerk. Recommend approval.
B. Ordinance 04-44, Of the City Council Authorizing the Expenditure of Homer Accelerated Road Program (HARP)
Funds for the Spruceview Avenue Road Reconstruction and Paving Assessment District Project. City Manager. (Fiscal
Note: Estimated project cost $400,000.00, Project No: 160-766: Assessments are $185,186.11. $30 per front foot for
reconstruction and $17 per front foot for paving.) Recommend introduction for first reading and conduct public
hearing and second reading on September 27, 2004.
Councilmember Stark requested that Ordinance 04-45 be deleted from the agenda.
C. Ordinance 04-45, Of the City Council of Homer, Alaska, Amending the Homer City Code to add a New Section
9.04.047, Real Property Tax -- Exemption for Senior Citizens, to Adjust the Exemption of Real Property for Seniors
Living within the City of Homer Who are 65 Years or Older on the "First $150,000.00" of Assessed Value" to the
"First $200,000.00 of Assessed Value." Ladd. Stark. (Fiscal Note: Estimated reduction in revenues is
$13,233.00.)Recommend introduction for first reading and conduct public hearing and second reading on September
27, 2004.
Resolution from Homer Senior Citizens, Inc.
Memorandum 04-125, from Finance regarding Fiscal Impact.
D. Ordinance 04-46, Of the City Council of Homer, Alaska, Accepting and Appropriating a USDA Community
Facilities Grant of $100,000.00 for Planning Costs for the New Homer Public Library Project and Authorizing the City
Manager to Execute the Appropriate Documents. City Manager. (Fiscal Note: Project No. 151-722, revenue and
expenditure.) Recommend introduction for first reading and conduct public hearing and second reading on September
27, 2004.
Council requests that Ordinance 04-47 be pulled at the request of the Administration.
E. Ordinance 04-47, Of the City Council of Homer, Alaska Redesignating City Owned Parcels 177-177-0600 and
177-177-0780, Namely Oscar Munson Subdivision Lots 43 and 44, on Ocean Drive Loop as Bluff as Ocean View
Park, a Limited Use Park for Sitting and Viewing. City Manager. Recommend introduction for first reading and
conduct public hearing and second reading on September 27, 2004.
Memoranda 04-126 and 04-127, from Parks and Recreation Commission.
F. Ordinance 04-48, Of the City Council of Homer Alaska, Amending Homer City Code Chapters 21.44, Rural
Residential District, 21.45 Urban Residential District, 21.48 Central Business District, 21.49 General Commercial 1
District, 21.50 General Commercial 2 District, 21.52 Marine Commercial District, 21.53 Marine Industrial District,
and 21.54 Open Space - Recreational District, Adding Uses Under Conditional Uses, To Provide for Indoor and
Outdoor Recreational Facilities. Novak. Recommend introduction for first reading and conduct public hearing
September 27 and second reading on October 11, 2004.
Memorandum 04-135, from City Planner as backup.
Memorandum 04-136, from Port Harbor Commission.
G. Resolution 04-76, Of the City Council of the City of Homer, Alaska, Authorizing the Formation of the Spruceview
Road Reconstruction and Paving Assessment District and Authorizing the City Manager to Proceed with the
Preparation and Construction of the Spruceview Road Reconstruction and Paving Project. City Clerk. (Estimated
project cost $400,000.00, Project No: 160-766: Assessments are $185,186.11. $30 per front foot for reconstruction
and $17 per front foot for paving.) Recommend adoption.
H. Resolution 04-77, Of the City Council of Homer, Alaska, Opposing Governor Murkowski's Proposal to Allow
Increased Pollution (Mixing Zones) in Salmon Streams. Yourkowski. Recommend adoption.
I. Resolution 04-83, Of the City Council Approving the 65% Architectural/ Design Plans for the New Homer Public
Library Project. City Manager Recommend adoption.
Memorandum 04-134, from City Manager as backup.
J. Memorandum 04-128, from City Clerk, Re: Request for Executive Session Pursuant to AS § 44.62.310(c)(1), Matters, the Immediate Knowledge of which would Clearly have an Adverse Effect Upon the Finances of the Government Unit and for Attorney Client Privilege. (Hurlen Lawsuit - Pioneer Dock Project and Ocean Drive Loop Bluff Erosion Control/Seawall Project). Recommend approval and, pursuant to Council's Operating Manual, conduct just prior to Audience Comments unless the Mayor calls for it to be held at another point.
K. Memorandum 04-129, from Mayor, Re: Appointment of Kurt Weichhand to the Port and Harbor Commission.
Recommend confirmation.
L. Memorandum 04-130, from Mayor Cushing and Councilmember Stark, Re: Release of City Attorney's 26
August Opinion on Conflict of Interest. Recommend release.
FENSKE/BECK - MOVED FOR THE ADOPTION AND/OR APPROVAL OF THE RECOMMENDATIONS OF
THE CONSENT AGENDA, AS READ. (with the exclusion of Item C and E.)
VOTE: (A, B, D and F - L.) YES: NON OBJECTION. UNANIMOUS CONSENT.
Motion carried.
See reconsideration just prior to Public Hearings.
VISITORS
None scheduled.
ANNOUNCEMENTS/PRESENTATIONS/BOROUGH REPORT/COMMISSION REPORTS
Bill Smith, Chair of the Town Center Development Committee, reported and shared the excitement of the Town
Center Development Committee in their decision to move forward with the final selection of their two plans, to be
forwarded to the Planning Commission in January, at their next meeting September 30th at the Homer Chamber of
Commerce Building. Everyone, including the public, were invited to this meeting. He advised that this meeting will be
to finally lay down, pretty much, the final outlines of what the development will look like. He stated that he has been
working with Eileen Bechtol on some background material about extending the design manual into more architectural
themes in addition to laying out the streets and park designs. He informed the Council that they will be recommending
some architectural themes. He encouraged Council participation and voiced a hope that they will end up with some
recommendations regarding amendments to the Community Design Manual.
Councilmember Stark voiced his desire that Council be advised and have some input into this document. He
commented that he hates to see things go to a final conclusion before coming to the Council.
Mayor Cushing inquired if the Council wanted a "private showing" so to speak and the Council expressed consensus
that attendance at the September 30th Town Center Development Committee was sufficient. Mayor Cushing clarified
with Chair Smith that the Council may provide input at any meeting. Committee member reports were suggested.
It was also noted that two Councilmembers are on this Committee. Councilmembers Beck and Novak.
Kyra Wagner, Library Advisory Boardmember, thanked the Council for their support and for adopting Resolution 04-83. She noted that this is a small mile stone in the construction process and that these are the types of things that keep the Library Advisory Board going.
Planning Commission Chair Chesley provided a written report via email to the City Manager.
A. Memorandum 04-131, from Councilmember Stark, Re: Travel Reports - AML Legislative Meeting in Kenai and
Trip report on MADD organizational meeting in Soldotna.
No action report only.
Councilmember Stark responded, regarding MADD, to Councilmember Fenske that he did not represent the City since
he was not authorized to do so and to the Mayor's inquiry that the Kenai Peninsula Chapter is established in the
Soldotna and Kenai area and that he suspects that as time goes on that they will expand their activities, which would
be beneficial to the entire community.
B. Memorandum 04-132, from Councilmember Fenske, Re: Travel Report - AML Legislative Meeting in Kenai
No action report only
Councilmember Fenske pointed out that just because the state is experiencing some high oil prices at this particular
time it is not the time to become complacent and not to pay close attention to the budgetary needs of the municipality.
He commented on the end of State Revenue Sharing to the municipalities. He advised that the Alaska Municipal
League, collective organization of municipalities, makes recommendations, one of which and the strongest, is for the
development of a municipal dividend. He advised that there is information available on the Municipal Dividend and
encouraged all citizens to become informed.
Councilmember Stark added a comment on the confusion about the revenue into the state coffers from the higher oil
prices and the earnings of the permanent fund. He noted that the higher oil prices does put more money into the
corpus of the main body of the permanent fund, which increases the earnings in the future. He stated that the proposal
is to use the earnings and divide it between dividends and state government, probably education. He stated that as the
earnings increase , which will increase dramatically in the near future due to the increased corpus of the permanent
fund, then the money available for all of these activities; the dividends, the state cut of the pie - probably for
education, and the remittance to municipalities; will increase.
C. Memorandum 04-133, from Library Advisory Board, Re: Potential Replat.
No action report only.
City Manager Wrede responded to Councilmember Stark's inquiry regarding the replat of the City's eight lots into two lots and the status of the right of way (2):
City Manger Wrede advised that he had relayed concerns to the Planning Commission about giving up rights of way
that would certainly be needed for pathways and perhaps drainage and utilities. He added that it also seems
problematic, before the Transportation Impact Assessment, to be giving up rights of way, because there is one school
of thought that maybe an exit into that neighborhood (3), from the Library, would be a good thing.
Mayor Cushing asked for reconsideration of the Consent Agenda to note his conflict of interest with regard to
Ordinance 04-48 and to abstain from that portion of the Consent Agenda.
Mayor Cushing handed the gavel to Mayor Pro Tempore Fenske.
There were no objections from the Council.
FENSKE/BECK - MOVED TO RECONSIDER THE CONSENT AGENDA.
VOTE: (reconsideration) YES: NON OBJECTION. UNANIMOUS CONSENT.
Motion carried to reconsider the Consent Agenda.
Mayor Pro Tempore Fenske agreed with Mayor Cushing that he has a Conflict of Interest. He read the title of
Ordinance 04-48 into the record and noted Memorandum 04-135 from the City Planner.
There were no comments.
VOTE: (Revote on Consent Agenda main motion) YES: NOVAK, BECK. FENSKE. YOURKOWSKI, STARK.
Motion on Revote carried.
Appreciation was expressed to the Mayor for sharing his concern regarding Conflict of Interest on Ordinance 04-48.
Mayor Cushing reported that he is on the Board and Executive Board of Arctic Winter Games, that he did the geo
tech on the old site for free, and now the facility is being built by one of his clients on their property.
PUBLIC HEARING(S)
Mayor Cushing asked for testimony on Items. A - D.
A. Resolution 04-78, Of the Homer City Council Supporting Alaska Department of Environmental Conservation
(ADEC) in their Efforts to Gain Funding for Projects in the Homer Area. (Public Hearing September 13, 2004,
Adoption scheduled for September 27, 2004.)
B. Resolution 04-79, Of the Homer City Council Supporting Area-Wide Projects. (Public Hearing September 13,
2004, Adoption scheduled for September 27, 2004.)
C. Resolution 04-80, Of the Homer City council Adopting Capital Projects/Legislative Request for FY2006 and
Requesting Appropriate Funding. (Public Hearing September 13, 2004, Adoption scheduled for September 27,
2004.)
D. Resolution 04-81, Of the Homer City Council Adopting the "City of Homer Capital Improvement Plan 2005
through 2010" as the Official Six Year Capital Improvement Plan for the City of Homer. (Public Hearing
September 13, 2004, Adoption scheduled for September 27, 2004.)
There was no Public Testimony.
City Manager Wrede noted that the Planning Commission input was not included in the packet and that their priorities are:
Bridge Creek Watershed Land Acquisition
Senior Access Trail
Deep Water Dock Corrosion
Kachemak Drive Water and Sewer
Public Safety in the Town Center
E. Ordinance 04-42, Of the City Council Accepting and Appropriating A US Department of Homeland Security
Matching Grant of $36,000.00 FY 04 Assistance to Firefighters Grant, Appropriating the Sale of Surplus Equipment
of $7,500.00 for the Match and Purchase of Equipment and Authorizing the City Manager to Execute the
Appropriate Documents. City Manager. (Fiscal Note: Revenue and Expenditure Accounts 151-785.) (First Reading
August 23, 2004, Public Hearing and Second Reading September 13, 2004.)
There was no Public Testimony.
BECK/YOURKOWSKI - MOVED FOR THE ADOPTION OF ORDINANCE 04-42 BY READING OF TITLE.
There was no discussion.
Motion carried.
ORDINANCE(S)
A. Ordinance 04-38, Of the City Council Authorizing the City Clerk to Make Revisions to Ordinance 04-11(A),
Pursuant to HCC 1.08.060, Revisor Authority. City Clerk with review and concurrence by the City Attorney and the
City Manager. (First Reading August 9, 2004, Public Hearing and Second Reading August 23, 2004 - postponed to
Second Reading September 13, 2004.)
Postponed on August 23rd to September 13th: FENSKE/YOURKOWSKI - MOVED TO POSTPONED ACTION
ON ORDINANCE 04-38 TO NEXT REGULAR MEETING. (September 13, 2004) Motion carried.
FENSKE/YOURKOWSKI - MOVED TO ADOPT ORDINANCE 04-38 BY READING OF TITLE.
There was no discussion.
City Clerk Calhoun requested consideration for Section 9. to be added as is proposed on page 243 of the packet.
BECK/YOURKOWSKI - MOVED TO AMEND THAT SECTION 9 BE ADDED TO ORDINANCE 04-38.
Section 9. The City Clerk is hereby authorized to make any other revisions and adjustments during the codification of
Ordinance 04-11(A) so long as those revisions and adjustments are of like nature to those reflected in Sections 1 - 7
and that a report be made, to the City Council, of any such revisions or adjustments.
There was no discussion.
VOTE: (primary amendment 1.) YES: NON OBJECTION. UNANIMOUS CONSENT.
Motion carried.
There was no discussion.
VOTE: (main amended motion) YES: NON OBJECTION. UNANIMOUS CONSENT.
Motion carried.
CITY MANAGER'S REPORT
A. City Manager's Report - verbal presentation.
City Manager will have the ballot explanation out this week regarding the two propositions on the ballot.
Shall the City of Homer borrow funds, which shall be a general obligation of the City, in an amount not to exceed
$2,200,000.00 ($2.2 Million) for the purpose of constructing and equipping the new Homer Public Library?
Shall the City of Homer Sales Tax rate of levy be increased by 1/2 of one percent (from 3.5% to 4%)?
COMMITTEE REPORT
A. Town Center Development Committee meeting held on August 26, 2004. Next meeting scheduled for September
30th at 6 p.m. at the Homer Chamber of Commerce.
Councilmember and Committee member Novak reported that the Committee is dealing with the infrastructure of the
Town Square, that they have been addressing how to layout the infrastructure to develop the area and then they
wanted to submit this to the Planning Commission. He noted that this does not state, specifically, what is going to
happen as far as a specific section of Town Square, which is still open for interpretation and that they do have some
plans, ie., the Heart of Homer Plan, which is one of the plans displayed in the Council Chambers. He advised that the
Heart of Homer Plan is one of the plans that is popular on the Town Center Development Committee. He noted that
this is the beginning of the process.
Councilmembers and Committee members Beck and Novak responded to inquiry that the Committee has been
working closely with Public Works regarding sewer, water and roads infrastructure.
Councilmember Fenske gave a report on the Kachemak Bay Campus Advisory Council meeting. He emphasized that
the campus project was delayed long enough that the $5 million budgeted, about ten years ago, for a new campus
ended up, instead, in expansion project of an addition of 9,000 square feet due to the price of materials and the cost of
construction increasing. He reported that it will take an additional $900,000.00 to complete the current project and
portions of the project had to be cut to meet the budget, such as painting the existing facility to match the expansion.
B. Road Standards Committee. Next meeting scheduled for September 28th at 6:30 p.m.
PENDING BUSINESS
None scheduled.
NEW BUSINESS
None scheduled.
RESOLUTIONS
None scheduled.
Mayor Cushing called for Audience Comments prior to recessing to Executive Session and noted that there would be
Audience Comments after the Executive Session.
COMMENTS OF THE AUDIENCE PRIOR TO EXECUTIVE SESSION - As called for by the Mayor.
Rosi Tupper addressed the Mayor, City Manager and hardworking Councilmembers advising them that this is another
financial sob story, but involves a principle. She apologized in being much more knowledgeable about National
government then local. She informed the Council that she has owned property and has lived on West Hill road over
thirty years, that she is not rich through inheritance or divorce settlement and, possibly with her fixed income, is close
to the poverty level. She stated that, in good faith, she obtained a building permit for $100.00 years ago, but has
continued living in her garage, saving money and unable to commence construction until she sold property. She
suggested that, perhaps, she should have asked for a refund of the $100.00. She emphasized that she paid beau coup in
property taxes over the years, wondering what she was getting that people outside the City weren't and surely, not
water or sewer or replacement of 60 year old crumbling culvert or a ditch to divert West Hill run off from her swampy
back yard. She pointed out that she was not made aware that the construction tax exemption part is now $100.00 and
not $200.00, therefore , she is paying up to $1,000.00 tax wise on building materials. She commented that by her
improving her property the City will reap additional taxes. She stated that she would be happy to pay an addition
$80.00 to cover inflation, but objected to being taxed $280.00, which is unfair and a source of ill will for her as a
Senior Citizen.
The Mayor and Council advised her that they had a copy of the letter that Planning sent to her.
Ms. Tupper stated that she had not yet picked up the letter from the Post Office.
Mayor Cushing noted that a short break would be taken prior to going into Executive Session for anyone who wanted
to speak to her more about this matter.
Frank Griswold, City resident, stated that he might have a comment on that Attorney opinion and inquired if it were
going to be released tonight.
Mayor Cushing affirmed and stated that someone will get him a copy.
Frank Griswold commented on a minor point on Ordinance 04-48, that he noticed that in all the zones except the
Central Business District have indoor and outdoor subsections o. and p. and that the Central Business District just has
an o. outdoor.
Mayor Cushing advised him that indoor recreational facilities are already allowed in the Central Business District.
EXECUTIVE SESSION Pursuant to AS § 44.62.310(c)(1), Matters, the Immediate Knowledge of which would
Clearly have an Adverse Effect Upon the Finances of the Government Unit and for Attorney Client Privilege (Hurlen
Lawsuit - Pioneer Dock Project and Ocean Drive Loop Bluff Erosion Control/Seawall Project). Recommend approval
and, pursuant to Council's Operating Manual, conduct just prior to Audience Comments unless the Mayor calls for it
to be held at another point.
Mayor Cushing recessed the meeting to Executive Session at 7:58 p.m., reconvening the Regular Meeting at 9:48 p.m.
Councilmember Fenske stated that the Council met in Executive Session to hear an update on the litigation with the
Hurlen Lawsuit dealing with the Pioneer Dock Project and also on the lawsuit regarding the Ocean Drive Loop Bluff
Erosion Control/Seawall Project. He advised that the Council was briefed on the status of the litigation, that Council
gave advice to the attorneys Gordon Tans and Mike Kreger, of Perkins Coie, and that no other action was taken.
COMMENTS OF THE AUDIENCE
Audience comments upon any matter.
Frank Griswold advised that he went over the City's opinion and that he has a few comments on it, about the conflict of interest. He commented the following:
COMMENTS OF THE CITY ATTORNEY
City Attorney Tans and Kreger participated telephonically during the Executive Session.
COMMENTS OF THE CITY CLERK
City Clerk Calhoun had no comment.
COMMENTS OF THE CITY MANAGER
City Manager Wrede had no comment other than to apologize for having laryngitis.
COMMENTS OF THE MAYOR
Mayor Cushing stated that these are exciting times in Homer and that he will be following all of the issues.
COMMENTS OF THE CITY COUNCIL
Councilmember Yourkowski reported listening to the Kodiak City Council meeting and that under Comments of the
Audience they take phone calls from the public. He inquired as to what the rest of the Council thought about that?
ADJOURNMENT
There being no further business to come before the Council the meeting was adjourned at 9:54 p.m. The next Regular
Meeting is scheduled for Monday, September 27, 2004 at 7 p.m. The next Committee of the Whole meeting is
scheduled for Monday, September 27, 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
Approved: _______________
clerk@ci.homer.ak.us, 235-3130, home number 235-2843.
1. The President, John D. Kosch, of the Homer Senior Citizen's Inc. and the Director, Fred Lau, of the Homer Senior Citizen's Center were notified by 9:00 a.m. this morning, September 13th, of Councilmember Stark's request to pull the Ordinance
2. Lucky Shot.
3. Grubstake, Bonanza and Klondike - Glacierview Subdivision area.