HOMER CITY COUNCIL/SPECIAL MEETING

Session 08-27 a Regular Meeting of the Homer City Council was called to order on September 22, 2008 at 7:00 p.m. by Mayor Pro Tempore Dennis Novak at the Homer City Hall Cowles Council Chambers located at 491 E. Pioneer Avenue, Homer, Alaska, and opened with the Pledge of Allegiance.

PRESENT: COUNCILMEMBERS: HEIMBUCH, HOWARD, NOVAK, ROBERTS, SHADLE, WYTHE

STAFF: CITY MANAGER WREDE

CITY CLERK JOHNSON

CITY PLANNER ABBOUD

Council met as a Committee of the Whole from 4:00 p.m. to 5:30 p.m. Agenda items were: 2009-2014 Capital Improvement Plan and FY 2010 Legislative Requests, Resolution 08-97, A Resolution of the Homer City Council to Include a Disc Golf Course at Jack Gist Park and Regular Meeting Agenda items. Council met for a Special Meeting from 5:45 p.m. to 6:23 p.m. Agenda item was Main Street Rehabilitation / Main Street & Sterling Hwy. Intersection.

Mayor Hornaday was absent from the meeting.

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:

City Manager’s Report, New Business – Memorandum 08-132[1] – Correspondence from James C. Hornaday.

Mayor Hornaday withdrew his resignation from the Mayor’s seat. Per the City Attorney, Mayor Hornaday is allowed to withdraw his resignation prior to Council accepting it. Any action taken by Council on Memorandums 08-132 and 08-133 would be unlawful.

Councilmember Shadle declared Councilmember Heimbuch’s conflict of interest. Councilmember Heimbuch is a candidate for the Mayoral race October 7, 2008. Council did not express a conflict of interest. Mayor Pro Tempore Novak ruled a potential for conflict of interest exists and excused Councilmember Heimbuch.

Councilmember Heimbuch stepped down from his seat.

Memorandums 08-132 and 08-133 were removed from the agenda.

The agenda as amended was approved by consensus of the Council.

PUBLIC COMMENTS UPON MATTERS ALREADY ON THE AGENDA

Roberta Highland, city resident and President of Kachemak Bay Equestrian Association, voiced support of Resolution 08-103. The association owns and runs Cottonwood Horse Park and applied for the Kenai Peninsula Borough property tax exemption and would like the city property tax exemption ($360 - $380) too. They will continue fundraising efforts to complete the purchase of the property, with $145,000 owed. In-kind donations and paid construction costs have totaled $160,850 and $78,550 in financial contributions, including grants. They have had 300 participants and 340 spectators for events at the horse park.

Fred Lau, Director of Homer Senior Citizens, supports Resolution 08-104. He asked for Council support so the center may forward an application to the State of Alaska for funds. It will provide funding to supplement travel for seniors and disabled individuals. The funds provide for taxi cabs and the van at the Senior Center, benefitting between 120 and 130 people.

Asked by Councilmember Roberts if this referenced the Homer Coordinated Transportation Plan, Mr. Lau answered the only change to the plan is for one priority, transportation funding for seniors and those with disabilities.

Rike Mouw, city resident, requested Ordinance 08-44 be postponed to November. At the Borough meeting last week they decided to rethink the property transfer and bring it back in November.

Leonard Wells, city resident, commented on Resolution 08-103. There is nothing in the resolution indicating how much property tax money the city would forego by taking the property off the tax rolls. He asked to think about how it affects the revenues of the City.

Alder Seaman, Homer Soil and Water Conservation District (HSWCD), favors Resolution 08-99. If the grant is awarded it will give HSWCD and Kachemak Heritage Land Trust the financial means to improve and extend the Calvin Coyle Nature Trail. The trail has been a great resource for the community, visitors, and students at Paul Banks Elementary School. The trail has fallen into disrepair with the spruce bark beetle infestation and is extremely mucky due to wetland soils near Beluga Lake. Improvements will include boardwalk that leads to a viewing platform, cleaning up the trail corridor and a new section of trail on the Buxton property. A new parking lot at the end of Mariner Drive will expand the existing Calvin and Coyle trail. Many letters of support have already been received.

Asked by Councilmember Heimbuch how big the project is, Ms. Seaman answered there is a $50,000 cap on the grant.

Kurtis Schoenberg supports Resolution 08-97. Disc golf would suit Jack Gist Park perfectly with the fields already set up there. He works with Alaska Disc Golf Association (ADGA), a non profit out of Anchorage. They just finished putting in an 18-hole course at Kincaid Park that has been a great success. It is a low impact sport, something anyone can play. It is a great thing for Homer and will provide something different for the town.

Edan Badajos, city resident and member of ADGA and Professional Disc Golf Association, supports Resolution 08-97. The course would be a great asset for Homer, an opportunity for people of all ages and all skill levels. It would provide for out of town people and locals. ADGA is willing to raise funds with volunteer hours and is looking forward to working with the City to make it a reality.

Asked by Councilmember Shadle of the costs, Mr. Badajos answered as long as the City is willing to provide the place at Jack Gist Park, the ADGA would share a partnership in managing facilities to include restrooms, garbage, and keeping the road and parking lot open. ADGA would be willing to raise funds and provide volunteer hours.

Jud Hancock, city resident, supports Resolution 08-97. He has been playing disc golf since 1995, loves the sport, and has been a member of ADGA since 1993. He has traveled and made friends, met people of all ages, shapes and sizes in playing the game. Everyone falls in love with the sport. It is low impact and accessible by simply walking the land. He has put in a number of volunteer hours at many disc golf courses and would be willing to do the same here.

James Hollowell, Homer area resident, supports Resolution 08-97. He would be willing to do volunteer hours and would love to see a course in Homer.

Thad Gunther, city resident and Parks and Recreation Advisory Commissioner, said the commission discussed disc golf and the game was demoed at Park Day. There were adults and children playing together. It is a low impact sport everyone can do. He has played for 10 years, and has seen a growth in the sport since 1999. It has grown from about 1,200 disc golf courses to nearly 3,000 in the Lower 48; from one to 10 in Alaska. The City of Anchorage contributed $100,000 to the new course in Kincaid Park with support of the ADGA. It is estimated $15,000 would cover the cost of a 9-hole course at Jack Gist Park, with ADGA spearheading the project. It could grab some tourists that normally would not come to Homer.

Asked by Councilmember Roberts of lawn mowing for the park, Mr. Gunther answered twice per year would outline the fairways. It does not need mowing like a standard golf course, nor is there a lot of maintenance. Just a few yards of dirt would build up the area and everything could be done in a weekend.

Jess Tenhoff, owner of Alaskan Yurt Rentals and Nomad Shelter, supports matched funding for the Small Business Development Center (SMDC). When they arrived in Homer in 2000 they were not able to be capitalized. They approached different agencies and the only valuable resource was the SBDC. When they were not able to secure capital, all the other organizations said come back when you have money. At SBDC they brainstormed together, ran numbers, and researched beneficial software. They started two businesses, one across the bay that is doing well and the other hired 10 people this summer. All funding should go to SBDC. Mrs. Tenhoff has three teenage boys that are value added product people, all looking to stay in Homer. The SBDC is the pathway to the experts that can help. With consideration of expanding their business into exports, she drives to Soldotna to talk to Mark Gregory of SBDC.

Nicky Szarzi, Alaska Department of Fish and Game, offered support on the Fishing Lagoon improvements for the CIP short list and Resolution 08-102. She was encouraged by the Legislators to get the City to ask for funding for stocking the late run silver salmon. The ADFG stocks two runs of fish per year, fundraising is necessary for the late run salmon. It is difficult to come up with $25,000 each year.

Councilmember Shadle asked if Ms. Szarzi could assure the the smolt are a little better, as the fish are really small this year.

Tom Youngblood, supports Resolution 08-102 as an important recreational facility for the community, both the young and elderly and those that are not able to go out on boats to catch fish. There is a small group of Homer citizens that raised funds for the past three years to support the fish stocking and they are running out of pockets.

RECONSIDERATION

None.

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 September 8, 2008 Regular Meeting. City Clerk.

Mayor Pro Tempore Novak called for a motion for the approval of the consent agenda as read.

ROBERTS/SHADLE – SO MOVED.

There was no discussion.

VOTE: YES. NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

VISITORS

A. Tina Day, Executive Director, Homer Chamber of Commerce.

Tina Day, Executive Director of Homer Chamber of Commerce, Michael Haines, Homer Economic Development Committee Member, and Mark Gregory, Small Business Development Center, provided a review of a small business development plan for Homer. The Chamber of Commerce requested $37,550 from the City for funding the overall expansion program.

ANNOUNCEMENTS/PRESENTATIONS/BOROUGH REPORT/COMMISSION REPORTS

Mayor Pro Tempore Novak recognized employees Chris Dabney, Melissa Jacobsen, and Mike Illg. Chris Dabney received a Letter of Commendation for his actions in saving the lives of two people in a boating accident. Melissa Jacobsen was awarded the Certified Municipal Clerk distinction upon completing the requirements of the International Institute of Municipal Clerks. Mike Illg obtained his certification as a Park and Recreation Professional.

Shelly Erickson, Economic Development Advisory Commissioner, reported the commission opposed Ordinance 08-16(S) for its negative impacts to businesses and low income people. The commission discussed, but took no action on Resolutions 08-100 and 08-101. Memorandum 08-130 is before Council for review.

A. Memorandum 08-130, from Economic Development Advisory Commission, Re: Throat Microphones for Use in Council Chambers.

Brief discussion ensued on throat microphones.

PUBLIC HEARING(S)

A. 2009-2014 Capital Improvement Plan and FY 2010 Legislative Requests.

Memorandum 08-131 from Special Projects Coordinator as backup.

Roberta Highland, city resident and Treasurer of the South Peninsula Hospital Service Area Board, asked for support on the MRI building.

Rika Mouw, city resident, asked Council to remove the Deep Water Dock (DWD) expansion off the CIP list. There has been no public dialogue about the expanded DWD and consequences that come with a facility like it. There is concern that a DWD will cost millions of dollars to build and maintain. It would cause more loss of habitat in designated critical habitat areas. Additionally, it would produce more ship traffic in Kachemak Bay and more truck traffic in Homer and on the Spit in the summer tourism time. There is no evidence freight being delivered to Homer would make products less expensive here. It is a question of the compatibility of increased industrial use on the Spit combined with tourism.

Fred Lau asked if there were questions on the handout at the last meeting for the senior housing project. If a non profit or senior center is not included on the CIP list there are no other alternatives. They are not asking the City for funding, placing the project on the CIP list is important to at least being able to go to the Legislature.

Cinda Eckert, city resident and President of Homer Hockey Association, supports the ice rink floor upgrade. She urged Council to keep nonprofit projects on the CIP list, as they are dependent on support of the City. Quality of life is dependent on the projects. It is important to be on the CIP for support of legislative funds.

Bill Smith expressed support for the MRI for the hospital. There is a notch where the MRI trailer is parked that needs to be filled in with an extra building. It is a keystone project, as it is a fully modern facility with the least cost to taxpayers. Keeping the MRI on the list allows funding from the Legislature and other bodies.

Leonard Wells, city resident, voiced support of all nonprofit projects going to the Legislature. As to a DWD, it is his understanding it is needed for the Coast Guard and for a more tourist boat friendly area, capable of larger tourist boats. A DWD would also be available for commercial venues. Industry would provide twelve months of revenue per year versus two or three months of revenue for tourists.

Nicky Szarzi, Alaska Department of Fish and Game, encouraged Council to put the fishing lagoon on the CIP short list. Riprap should be replaced on the north berm of the lagoon to keep it from breaching in high storms from the east. Dredge spoils are washed into the lagoon, resulting in the lagoon filling with sediments.

ORDINANCE(S)

A. Ordinance 08-44, An Ordinance of the City Council of Homer, Alaska, Purchasing Tax Foreclosure Property, Kenai Peninsula Borough (KPB) Tax Parcel Number 179-080-50, and Designating its Use for Public Purpose and Authorizing the City Manager to Execute the Appropriate Documents. City Manager. Recommended Dates: Introduction August 25, 2008, Public Hearing September 8, 2008 and Second Reading September 22, 2008.

NOVAK/SHADLE - MOVED TO POSTPONE UNTIL AFTER THE BOROUGH ASSEMBLY RULES ON ALLOWING THE PARCEL TO GO TO THE CITY.

City Manager Wrede said there may be value in sending a signal to the Borough that the City wants the parcel or not. In answer to questions from the September 8^th Council meeting, the LID (Local Improvement District) water/sewer assessment is $28,586 and the City could sell the property in the future.

Councilmember Roberts asked if a non-profit or land protection group were to purchase the property, would the LID assessment transfer? City Manager Wrede stated if the Borough retained and sold the parcel to a conservation group the City would pay the assessment.

Asked by Councilmember Heimbuch if the City Manager had an objection to the postponement, Mr. Wrede answered he does not. He added if Council decides it does not want the parcel, the issue is resolved for the Borough from taking up at a future meeting.

VOTE: (postponement) NO. HEIMBUCH, ROBERTS, WYTHE, SHADLE, HOWARD, NOVAK

Motion failed.

HEIMBUCH/SHADLE – MOVED TO ADOPT BY READING OF TITLE ONLY.

Council discussed the assessment that would be absorbed by the City if the parcel was purchased. Councilmembers Wythe and Shadle expressed their objections of the Borough passing on an expense to the community to avoid paying the assessment.

Mayor Pro Tempore Novak believes the Borough had the impression the parcel might be for public purpose. Councilmember Roberts is agreeable to taking the property and would not vote to sell it as it is valuable for moose habitat. She would want the City to examine it closely.

Councilmember Shadle stated it is not in the City’s best interest to take land from taxpayers; it should be back on the tax rolls to lessen the burden. If we do take it, we need to automatically sell it.

Mayor Pro Tempore Novak reflected there was an attempt to develop the property at one time and the Corps of Engineers said it cannot be filled.

Councilmember Heimbuch asked what the property tax receipts were. City Manager Wrede stated currently the tax receipts are low due to wetlands and development issues. When water and sewer lines are installed it makes the parcel more developable. It is on Kachemak Drive and close to the airport and may be zoned for commercial use.

Councilmember Wythe commented it comes back to the residents of the City of Homer absorbing a $29,000 assessment that the Borough has decided to step out of paying. If we could purchase the property for $300 and at a later date resell and recapture $30,000, then we would have provided a public purpose. The property has no value when the assessment is passed on to the citizens.

VOTE: YES. NOVAK, HEIMBUCH, ROBERTS

VOTE: NO. WYTHE, SHADLE, HOWARD

Motion failed.

B. Ordinance 08-46, An Ordinance of the City Council of Homer, Alaska, Amending the FY 2008 Operating Budget by Authorizing the Transfer of $27,445 from the General Fund to the Public Works Department for the Purchase of Caselle Software. City Manager. Recommended Dates: Introduction September 22, 2008, Public Hearing and Second Reading October 13, 2008.

Memorandum 08-135 from Planning Technician as backup.

Mayor Pro Tempore Novak called for a motion to adopt.

HEIMBUCH/WYTHE - MOVED TO ADOPT.

Asked how the software would be budgeted, City Manager Wrede advised Council they could introduce the ordinance if they liked the idea, with a substitute ordinance at the next meeting. The funds will come from the general fund and some funds from the water/sewer enterprise fund. Monies are already appropriated in department budgets, with the exception of $10,000 from the existing budget. A line item for equipment would allow property depreciation. Finance, Planning and Public Works say the software would cut out redundancy, save paper, make the permitting process more user-friendly and expeditious for the public.

VOTE: YES. HOWARD, NOVAK, HEIMBUCH, ROBERTS, WYTHE, SHADLE

Motion carried.

C. Ordinance 08-47, An Ordinance of the City Council of Homer, Alaska, Accepting and Appropriating a Loan Increase in the Amount of $3 Million Dollars from the Alaska Department of Environmental Conservation (DEC) for Construction of the New Water Treatment Plant. City Manager. Recommended Dates: Introduction September 22, 2008, Public Hearing and Second Reading October 13, 2008.

Pro Tempore Mayor Novak called for a motion to adopt.

HEIMBUCH/SHADLE – MOVED TO ADOPT.

City Manager Wrede stated he was sheepish when praised earlier by Councilmember Roberts of reducing the loan to $5M, as he knew the ordinance appropriating an additional $3M was forthcoming. The loan carries a 1.5% interest rate; it is likely the project with expend the entire $8M.

Councilmember Heimbuch asked if the 2009 budget allocated the increase for debt service. City Manager Wrede answered it was allocated for 2009, to be paid for with the HAWSP (Homer Accelerated Water and Sewer Program) fund. If the Borough initiative on unprocessed foods passes, the impact to the City of Homer will include the general fund and HAWSP and HART (Homer Accelerated Roads and Trails Program) funds. Currently most debt is through the HAWSP; Council will want to take a long, hard look at water and sewer LIDs before incurring any more debt.

Mayor Pro Tempore Novak commented the loan will allow use of the money if necessary to continue construction of the new water treatment plant. We may not need all the money.

VOTE: YES. NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

Mayor Pro Tempore Novak called for a recess at 8:29 p.m. and reconvened the meeting at 8:36 p.m.

CITY MANAGER’S REPORT

Congratulations to City Employees! I wanted to take a minute to highlight the recent accomplishments of several employees. Harbor Officer II, Chris Dabney recently received a Letter of Commendation for his actions on August 28 in which he likely saved the lives of two people who had been thrown from their boat outside of the harbor. Melissa Jacobsen has completed her studies and recently received the title of Certified Municipal Clerk; an honor presented by the International Institute of Municipal Clerks. And Mike Illg, Community Schools Coordinator recently obtained his certification as a Park and Recreation Professional after studying for the exam for a full year. Congratulation to all.
Training, Training, and more Training: The City staff has spent a great deal of time training the past few weeks trying to make sure the City is ready to do its part responding to emergencies. Last week City staff participated in a table top exercise regarding the Area Maritime Security Plan. City participants included the police, fire, port and harbor, and administration. Other participants included the Coast Guard, the Navy, Petro Marine, and AMHS. The idea was to familiarize us all with the Area maritime Security Plan and to make sure it was consistent and compatible the City’s Emergency Operations Plan and All Hazards Mitigation Plan. The scenario involved a terrorist attack on a Ferry. On Saturday, the Fire Department conducted a joint emergency response drill with DOT/PF personnel at the airport. And this week, the City will participate in a large oil spill response and clean-up exercise in Kachemak Bay. Tesoro is the lead company on this exercise. Information on that exercise attached.
Library Survey: The LAB recently conducted a survey of library users to help determine how users view the services provided by the library. It is my understanding that a summary of the survey results is currently being drafted. We will get the summary to you when it is available. Please let us know if you would like to see the results. Two things stood out. The respondents consistently stated that they wanted more books on the shelves and for the library to be open more hours.
Personnel Regulations: We are presently working on draft amendments to the personnel policies. The amendments incorporate resolutions and ordinances that the Council has adopted the past few years. They also incorporate some changes that the administration recommends for a variety of reason. There is a proposed new section that addresses ethics for City employees, as promised. We plan to submit this draft to all City employees for a 30 day review this week. It will also be reviewed by the City Attorney. We hope to bring it to the Council for review in early November.
West Campus: Attached is a letter from Carol Swartz, Campus Director, Kachemak Bay Campus. In the letter, Carol requests that the City make some significant repairs to the building. Some of these repairs are sorely needed. Some are pretty expensive. The Public Works Department is presently looking at which repairs are priorities and which ones we can do within our current budget. I bring this to your attention because at this point, we really don’t know how long the college will be in this building and how much you may want to invest in it. The City has been holding off on these types of repairs thinking that the College would not be there that long. This may change. Council will need to have that discussion sometime soon. The other reason is to give you a heads-up that we may be asking you for an appropriation from the depreciation reserves for this purpose.
Fire Department Radios: Good news here. The Fire Department was recently informed that it has received a grant in the amount of $135,618 for new mobile and hand held radios. There is no match required! These radios are currently included in the draft CIP list and can be removed!
Hydrant Flushing: The Public Works Department is preparing to purchase and install a device that will automatically divert water from the water distribution system to the sewer system when flushing is needed. This means that flushing the problematic hydrant on Kachemak Drive will no longer be needed. If this system works well, it can be installed in other locations which will save money on labor costs and improve productivity.
Airport Leases: We have decided, based upon the limited discussion we had with the Council, to go ahead and put out an RFP for lease proposals for two spaces, (26A, and 27) in the airport terminal. These spaces are both around 35 square feet. Space at the ticket counter is not included in the RFP. The RFP states that the space can be used for any type of business but that it had to be related to airport activities. It is not limited to car rentals.
Alternative Energy: As you may know, the Legislature recently pumped a whole bunch of additional money into the Alternative Energy Fund. In addition to the turbine project we have going, City staff and consultants are actively talking about submitting a proposal to conduct a feasibility study for tidal power. I mention this now just to let you know so that we can get an early signal about whether the Council favors having us spend time on this. Please let me know if you would like to discuss this idea. Also, Brian Hirch has indicated that he would be happy to attend a workshop or make a presentation to brief you on the possibilities and what moving forward might mean for the City.

City Manager Wrede apologized for the late report and thanked Mayor Pro Tempore Novak for congratulating the City employees. Fire Department radios can be deleted from the CIP list, as a grant has been received in the amount of $135,618 for the new mobile hand held radios. A letter from Carol Swartz, Campus Director of Kachemak Bay Campus, outlined items in the West Campus building that need repair. These improvements were delayed, as it was expected the college would only occupy the building for a short period of time. With the failed proposition for a new City Hall and lack of the college occupying the current City Hall building, repairs are imminent. There are complaints about the water, often brown, and students will not drink it.

As to the hydrant flushing on Kachemak Drive, Public Works has settled on a hydrant flushing system that works well in the northern climate and will not produce water on the ground. If the system works on this location, other applications will be explored.

The West Campus and Airport Leases were discussed. The college pays $56,000 per year, a third of the market value on the City-owned building. The Boys and Girls Club pays no rent and the City heats the building. The Airport Terminal has never paid for itself; it was not set up as an enterprise fund. The RFPs for space lease were an attempt to provide more income, as the amount we pay to lease the land from the State keeps increasing. The airport terminal is valuable to the community for quality of life and economic development. The Era lease has automatic increases built in, and they have already indicated they want to come back with more space than leased now. A renewal will be negotiated.

B. Question of the Week

11. COMMITTEE REPORT

A. Comprehensive Plan Community Advisory Committee

B. Public Arts Committee

C. Transportation Advisory Committee

D. Permanent Fund Committee

E. Lease Committee

12. PENDING BUSINESS

A. Resolution 08-53(A), Of the City Council of Homer, Alaska, Directing the City Manager to Begin the Bid Process for Waste Hauling Services for Small Rear Load Containers and Roll Off Containers. Shadle. (from April 14, 2008)

Motion on the floor from April 14, 2008: MOTION FOR THE ADOPTION OF RESOLUTION 08-53 BY READING OF TITLE ONLY. (Amendments have been approved by vote.)

Councilmember Shadle commented the resolution was continued due to bad timing in April with the whole summer ahead of us. We wanted to get waste hauling services out for proposal to see if there were competitive rates.

VOTE: YES. WYTHE, SHADLE, HOWARD, NOVAK, HEIMBUCH, ROBERTS

Motion carried.

B. Resolution 08-97, A Resolution of the Homer City Council to Include a Disc Golf Course at Jack Gist Park. Parks and Recreation Advisory Commission.

Memorandum 08-127 from Planning Technician as backup.

Motion on the floor from September 8, 2008: MOTION FOR THE ADOPTION OF RESOLUTION 08-97 BY READING OF TITLE ONLY.

WYTHE/ROBERTS – MOVED TO AMEND THE 5^TH WHEREAS TO STRIKE THE WORDS “PARTNER WITH THE CITY TO”.

There was no discussion.

VOTE: YES. NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

WYTHE/SHADLE - MOVED TO AMEND THE NOW THEREFORE BE IT RESOLVED: THAT THE CITY COUNCIL OF HOMER, ALASKA, HEREBY APPROVES THE USE OF THE JACK GIST PARK FOR DISC GOLF.

There was no discussion.

VOTE: YES. NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

WYTHE/ROBERTS - MOVED TO AMEND THE TITLE TO STRIKE “INCLUDE” AND INSERT “ALLOW”.

There was no discussion.

VOTE: YES. NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

Council is not opposed to disc golf in Jack Gist Park. They are just not interested in accepting the financial responsibility to establish and maintain the park.

HOWARD/ROBERTS – MOVED TO AMEND TO ADD: BE IT FURTHER RESOLVED THAT THE CITY COUNCIL REQUIRES A CONCEPTUAL SITE PLAN TO SCALE DEPICTING THE PLACEMENT OF A DISC GOLF COUSE IN JACK GIST PARK.

Councilmember Wythe moved for a friendly amendment to resolve to request a site plan to scale to be provided by the Parks and Recreation Advisory Commission as they are the sponsors of the original resolution.

The friendly amendment was accepted by Councilmember Howard.

There was no discussion.

VOTE: YES. NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

HOWARD/SHADLE – MOVED TO AMEND TO ADD: BE IT FURTHER RESOLVED THAT THE CITY COUNCIL REQUIRES THE FISCAL IMPACT INFORMATION.

Councilmember Howard explained they are demonstrating the financial responsibilities the organization is picking up; there is no financial responsibility of the City.

VOTE: YES. NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

HOWARD/SHADLE – MOVED TO AMEND TO CHANGE THE DATE OF PASSED AND ADOPTED TO THIS 22^ND DAY OF SEPTEMBER.

There was no discussion.

VOTE: YES. NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

VOTE: (main motion as amended) YES. NOVAK, HEIMBUCH, ROBERTS, WYTHE, SHADLE, HOWARD

Motion carried.

C. 2009-2014 Capital Improvement Plan and FY 2010 Legislative Requests.

WYTHE/SHADLE - MOVED TO POSTPONE TO OUR NEXT MEETING WITH THE REFINED LIST.

There was no discussion.

VOTE: YES. NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

NEW BUSINESS

A. Memorandum 08-132, from City Clerk, Re: Acceptance of Resignation of James C. Hornaday as Mayor, and Declaration of Vacancy in the Office of Mayor.

B. Memorandum 08-133, from City Clerk, Re: Filling the Vacancy of the Office of the Mayor.

Memorandums 08-132 and 08-133 were removed from the agenda under Agenda Approval.

RESOLUTIONS

A. Resolution 08-99, A Resolution of the City Council of Homer, Alaska, Supporting the Homer Soil and Water Conservation District’s 2009 State Recreational Trails Application for Trail Improvements on the Calvin and Coyle Trail. Roberts.

ROBERTS/WYTHE - MOVED FOR THE ADOPTION OF RESOLUTION 08-99 BY READING OF TITLE ONLY.

Councilmember Roberts commented the Soil and Water Conservation District is applying for a grant to improve the Calvin and Coyle Trail. The City will not expend any money for the trail by Paul Banks School to the east. It is a worthwhile project and part of the City’s trail plan.

VOTE: YES. NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

B. Resolution 08-100, A Resolution of the City Council of Homer, Alaska, Providing a Signage Area Allowance Credit for Renewable Energy Generation by Local Businesses. Shadle.

Mayor Pro Tempore Novak called for a motion for the adoption of Resolution 08-100 by reading of title only.

SHADLE/WYTHE - SO MOVED.

Councilmember Shadle explained the signage area allowance credit is something to do outside the box and it will help create alternative energy.

City Manager Wrede commented it is great to encourage alternative energy, although this is a zoning amendment and the zoning code cannot be amended by resolution. It would be creating exceptions to the design code. He suggested sending the resolution to the Planning Commission for review and feedback.

Councilmember Roberts supports renewable energy ideas, but signs and renewable energy are not correlated together. The sign ordinance makes Homer more attractive; the resolution talks about saving energy.

Councilmember Shadle asked that the public be allowed to comment and the Planning Commission be allowed to discuss the resolution.

Mayor Pro Tempore Novak explained the sign ordinance was designed to create specific criteria for signs. It is very specific and intentionally driven, although highly controversial. It is meant to regulate signage in the community. Anything that you do to allow someone to shoot off in another direction defies the ordinance and is not reasonable for businesses that don’t wish to participate. Although he appreciates credit for energy, signs are not one of those things that need adjustment.

Councilmember Roberts commented the Economic Development Advisory Commissioner who testified earlier said the commission considered the idea, but took no action.

Councilmember Shadle reaffirmed the importance of bringing the resolution forward as it did not pass or fail, just went dormant. Anytime something is brought to the table it is always good to have an open mind and allow for public comment.

Council discussed resolutions versus ordinances for public hearings and resolutions versus ordinances for code amendments. Councilmember Shadle suggested asking the Clerk if the resolution could go forward. When asked, City Clerk Johnson responded the resolution could be a supporting document to support the idea; an ordinance would be needed to amend the code.

Councilmember Heimbuch asked if the resolution could be referred to the Planning Commission.

NOVAK/WYTHE – CALL FOR THE QUESTION.

There was no discussion.

VOTE: (question) YES. ROBERTS, WYTHE, SHADLE, HOWARD, NOVAK, HEIMBUCH

Motion carried.

VOTE: (main motion) YES. HEIMBUCH, SHADLE

VOTE: NO. ROBERTS, WYTHE, HOWARD, NOVAK

Motion failed.

NOVAK/ROBERTS- MOVED FOR IMMEDIATE RECONSIDERATION OF RESOLUTION 08-100.

There was no discussion.

VOTE: (reconsider) YES. NOVAK, HEIMBUCH, ROBERTS, WYTHE, SHADLE, HOWARD

Motion carried.

HEIMBUCH/SHADLE – MOVED TO REFER TO THE ADVISORY PLANNING COMMISSION.

There was no discussion.

VOTE: (refer) YES. HOWARD, HEIMBUCH, SHADLE

VOTE: NO. NOVAK, ROBERTS, WYTHE

Motion failed.

NOVAK/ROBERTS – CALL FOR THE QUESTION.

There was no discussion.

VOTE: (question) YES. SHADLE, HOWARD, NOVAK, HOWARD, ROBERTS, WYTHE

VOTE: NO. HEIMBUCH

Motion carried.

VOTE: (main motion as reconsidered) YES. SHADLE, HEIMBUCH

VOTE: NO. WYTHE, HOWARD, NOVAK, ROBERTS

Motion failed.

C. Resolution 08-101, A Resolution of the City Council of Homer, Alaska, Creating an Agricultural Free Enterprise Zone. Shadle.

Mayor Pro Tempore Novak called for a motion for the adoption of Resolution 08-101 by reading of title only.

SHADLE/HEIMBUCH – SO MOVED.

Councilmember Shadle explained the intent was to send a message to the Kenai Peninsula Borough to grow more of our own crops for economic stimulus to community. It is nice to grow and buy locally.

HEIMBUCH/SHADLE – MOVED THAT THE DATES BE INCLUDED IN THE NOW THEREFORE BE IT RESOLVED CLAUSE TO ALIGN WHAT IS BEING CONSIDERED BY BOROUGH VOTERS HERE OCTOBER 8^TH.

Councilmember Heimbuch noted all products in the resolution fall under the Borough ordinance being considered for non-prepared foods.

VOTE: YES. ROBERTS, WYTHE, SHADLE, HOWARD, NOVAK, HEIMBUCH

Motion carried.

Mayor Pro Tempore Novak said the intent is to create a tax free enterprise zone; something simpler is needed. There are ways we can create special zones, although this is a large zone with a lot of different projects. He would have liked to see something simpler, ie. a tax free zone at the Farmers Market where taxes are not collected when you bring your wares. We may be bound to go to the Borough for further advice.

Councilmember Wythe noted the title creates an agricultural free enterprise zone, rather than a tax free zone. In the now, therefore clause it states the items will be tax exempt if sold within the Kenai Peninsula Borough. We do not have sales tax authority to take action over the Borough. The resolution could be amended and brought back at a later date; it would take a substantial adjustment to make it good today.

Councilmember Shadle related he discussed the resolution with City Manager Wrede prior and understood he could provide the resolution to send a message to the Borough. City Manager Wrede replied it appears the intent is to send a recommendation to the Borough. The resolution would need amendment.

HEIMBUCH/SHADLE - MOVED TO AMEND THIS RESOLUTION IN THE TITLE SAYING: RESOLUTION OF THE CITY COUNCIL OF HOMER, ALASKA, SUPPORTING A SALES TAX EXEMPT AGRICULTURAL ENTERPRISE ZONE.

VOTE: YES. NOVAK, HEIMBUCH, ROBERTS, WYTHE, SHADLE, HOWARD

Motion carried.

Councilmember Roberts said the language is very broad in the area what we are exempting and covers a large gamete of production. The whole resolution needs more work.

Mayor Pro Tempore Novak commented crafting resolutions at the City Council table is not the way to do business. This is a situation where you should move to postpone and bring back.

NOVAK/ROBERTS – MOVED TO POSTPONE.

Councilmember Wythe moved for a friendly amendment to postpone to October 27^th and make corrections at the Committee of the Whole on October 13, 2008.

Mayor Pro Tempore accepted the friendly amendment.

VOTE: (postponement) YES. HOWARD, NOVAK, ROBERTS, WYTHE

VOTE: NO. HEIMBUCH, SHADLE

Motion carried.

D. Resolution 08-102, A Resolution of the City Council of Homer, Alaska, Asking the Alaska State Legislature to Appropriate $25,000 to Purchase Late-Run Silver Salmon from Cook Inlet Aquaculture to Stock in the Nick Dudiak Fishing Lagoon. Howard.

Mayor Pro Tempore Novak called for a motion for the adoption of Resolution 08-102 by reading of title only.

WYTHE/SHADLE – SO MOVED.

There was no discussion.

VOTE: YES. NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

E. Resolution 08-103, A Resolution of the Homer City Council Exempting the Cottonwood Horse Park from all City Property Tax Meeting the Criteria of Kenai Peninsula Borough Code 5.12.100, Real Property Tax – Exemptions – Community Purpose Property – Conditions, Retroactive to January 1, 2008 and Authorizing the City Manager to Execute Any and All Associated Documents. Novak.

NOVAK/HOWARD – MOVED FOR THE ADOPTION OF RESOLUTION 08-103 BY READING OF TITLE ONLY.

The City Attorney advised the resolution needs to be in ordinance form. Council noted the intent is to exempt City property tax retroactive to January 1, 2008.

WYTHE/HEIMBUCH - MOVED TO POSTPONE ANY ACTION ON THE RESOLUTION AND REQUEST STAFF TO PREPARE THE ORDINANCE AS APPROPRIATE FOR CONSIDERATION AT THE NEXT MEETING.

Council discussed the timeline for the exemption, the ordinance would push the exemption past the Borough due date.

VOTE: (postponement) YES. SHADLE, HOWARD, NOVAK, HEIMBUCH, ROBERTS, WYTHE

Motion carried.

F. Resolution 08-104, A Resolution of the City Council of Homer, Alaska, in Support of the Homer Area Coordinated Transportation Plan Developed by the Homer Coordinated Transportation Task Force. City Manager.

Mayor Pro Tempore Novak called for a motion for the adoption of Resolution 08-104 by reading of title only.

WYTHE/ROBERTS - SO MOVED.

There was no discussion.

VOTE: YES. NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

COMMENTS OF THE AUDIENCE

Bill Smith commented on the Borough sales tax initiative. The Borough is projecting it would cost $1,800,000, or $3.81 individual savings per month, per individual on non prepared food items. The change in revenues to the City would be $800,000; the Finance Director states it may be $1M. Of the $800,000, sales tax paid by people that do not live in the City amounts to $544,000. Sales tax revenue was an issue during annexation. If the initiative passes and the City does not find a way to cut expenses, the $544,000 will have to be picked up by property tax payers. The Borough is looking at a similar scenario. They currently have a balanced budget with the same revenues in property and sales tax. In looking at the struggle the Borough has gone through to get to the balanced tax point he would like to see things settle down for a year and then look at revenues.

Leonard Wells, city resident, reiterated Mr. Smith’s comments and asked Council for considerations for next year’s budgeting cycle. Anytime a resolution comes up he requests that it indicate what the financial costs would be to the City. When property taxes are exempted it should be reflected, as other property taxpayers take up the burden of those exempted. Businesses in town that own property under sales tax costs are contributing more than non profit organizations contribute to the City.

COMMENTS OF THE CITY ATTORNEY

City Attorney Klinkner was not present.

COMMENTS OF THE CITY CLERK

City Clerk Johnson reminded the audience of absentee voting at the Clerk’s office, open now through the October 7^th election. Kenai Peninsula Borough absentee ballots are available in the downstairs lobby at City Hall. She stated tonight was the last Council meeting for Mike Mason of KBBI. She wished Mike Mason well, stating he was great to work with.

COMMENTS OF THE CITY MANAGER

City Manager Wrede had no comments.

COMMENTS OF THE MAYOR

Mayor Pro Tempore Novak thanked Mike Mason for his work and getting the notice out. The CIP is on the October 13^th agenda and Council will move into the budget process.

COMMENTS OF THE CITY COUNCIL

Councilmember Wythe thanked Mike Mason for his endless efforts in keeping us heard in the room and on the radio. She wished him well in his next endeavors and hopes he enjoys his vacation in October.

Councilmember Shadle told Mike Mason when he becomes the next Tom Bodett to not forget about us.

Councilmember Howard thanked Mike Mason; everyone talked into their microphones tonight. That was Council’s going away present to him.

Councilmember Heimbuch spoke on the sales tax ordinance before the voters. He thanked Citizen Smith and individuals concerned about redistribution of sales tax on the backs of property owners. We can no longer ignore reality with inflation. Municipalities need to reassess their fiscal impact on the public in this economic climate. It is my last council meeting as a lame duck. He thanked all Councilmembers for the opportunity to serve over the last three and a half years.

Councilmember Roberts thanked Mike Mason for everything he has done for the community.

ADJOURNMENT

There being no further business to come before the Council the meeting was adjourned at 9:40 p.m. by Mayor Pro Tempore Dennis Novak. The next Regular Meeting is scheduled for Monday, October 13, 2008 at 7:00 p.m. The next Committee of the Whole is scheduled for Monday, October 13, 2008 at 4:00 p.m. All meetings scheduled to be held in the Homer City Hall Cowles Council Chambers located at 491 E. Pioneer Avenue, Homer, Alaska.

______________________________

JO JOHNSON, CMC, CITY CLERK

Approved: _____________________