Session 03-09, a Regular Meeting of the Homer City Council was called to order at 7:30 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.

The Council's Committee of the Whole met from 4:00 p.m. to 6:00 p.m. Items discussed were the Regular Meeting Agenda Items and Land Allocation Issues.

PRESENT: COUNCILMEMBERS: BECK, FENSKE, KRANICH, LADD, STARK, YOURKOWSKI.

STAFF: CITY MANAGER WREDE

CITY CLERK CALHOUN

LIBRARY DIRECTOR HILL

PUBLIC WORKS DIRECTOR MEYER

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 following additions and notations: Memorandum 03-62, corrected recommendation, Note that Councilmember Fenske's Travel Report Memo number is 03-66, Additional information for Saltwater Drive Improvement District, Ray Evarts letter in support of Animal Shelter relocating, Letter from Frank Griswold regarding Local Bidder's Preference, Backup to Resolution 03-63. Request from City Manager Wrede to place Memorandum 03-63 under City Manager Report instead of New Business.

PUBLIC COMMENTS UPON MATTERS ALREADY ON THE AGENDA

The public may comment at this time on all matters on the agenda except the Visitor's presentation and Public Hear Items: Salt Water Drive and West Lakeshore water and sewer districts, and Ordinances 03-20, zoning of study area 6, 03-21, repealing contract rezone and 03-22(S) HPD grant.

Sherry Bess addressed the Council regarding the Animal Shelter site selection. She asked the Mayor for a show of hands of those in the audience who are in support of the letter that was submitted to the Manager, Mayor and Council from S.O.S. (Support Our Shelter) about the Animal Shelter relocating.

There were, according to Mayor Cushing, 90%, or better, of the audience who raised hands in support of the new Animal Shelter and new location comments by Sherry Bess

Sherry Bess commented on the S.O.S. letter that requests the time frame for selecting a site for the shelter to be extended and that other sites not be ruled out. She noted that much progress has been made toward the building and procurement of a new shelter. She voiced appreciation to Councilmember Fenske for all of his work toward the new shelter and that this project not would be as far along as it is without his work. She recommended that Council take the time and care to select the proper site. She voiced concern that hurriedly selecting a site right now may cause an oversight of a much better location. The current location is inadequate right now and not conductive to future expansion, since only a corner of the lot is usable for the shelter. A few years from now when the shelter needs to grow, locating a bigger site may be much more difficult. Now is the best opportunity. She voiced her desire for the City to take the next several months to continue to study other sites. The staff of the shelter also wants a new shelter immediately, but would rather work with it as it is now for the next year or two, if waiting would mean having a safe functional, modern facility on the best possible site and a shelter that Homer can be proud of that will serve its citizens and animals for the next 40 years.

Sherry Bess called for a show of hands by all those in the audience who were in support of what Sherry had just commented. Almost everyone in the audience raised their hands and the Chambers were fairly full.

Mary Griswold added a few more words about the Animal Shelter that she is definitely in favor of a new shelter and that another site, other than at Public Works and that an adequate shelter at the Public Works site would just take up too much space that is needed for Public Works expansion. She stated that she would hate to have to be looking for more space to park road graders and street sweepers. Public Works needs that space. She voiced support for the suggested DOT site on Kachemak Drive, adding that she thinks this would be a very good place since it is not in a residential area and is easily accessible by people coming through town and it is big enough to accommodate a proper facility and expansion in the future. If there are problems with this site with DOT then it is better to take the time and look hard for a site with similar characteristics before using the Public Works site. This is too long a term investment to choose a site with such immediate draw backs.

Linda Feiler relayed a quote she said that she believed to be from Gandhi, "You can judge a nation by how it treats its animals." She encouraged the City to get together with Soldotna and/or Kenai and try to figure out a way to make a shelter for the Kenai Peninsula whether it be in City limits or on the outside, or maybe just annex Anchor Point and locate the shelter there. It would be nice to have a beautiful place. There are so many children interested in the animals and there is a lot to learn at a shelter just like at a zoo. So many things can be taught to children at a shelter and children can have experiences there that they would not have any where else. She reported on visiting four other states recently and the shelters were unbelievable, they were mansions, there were beautiful and people visited the shelter while touring the state. In these large shelters there were places to walk, and sit, it was very comfortable with a place to read and there were children taking courses on training. She commented on the problem have trying to find things for children to do in this area with extra curricular activities. She stated it would be nice if Homer and the Kenai Peninsula Borough got together to try to make a nice shelter.

Eleanor Murphy, Kachemak City Homer Animal Friends member and pet supply acquisition volunteer, read the following.

As the saying goes, "It's like deja-vou all over again." I recall being in this meeting room several years ago with many of these same "supporters" and Council persons and being told by Mayor Cushing at that time that the Council had decided to build a good animal shelter. I remember being very pleased, and trusted that this was going to happen. Therefore, I was very surprised to hear that Homer may have decided to use the, already inadequate, site on which the Homer Animal Shelter currently stands. To top it off, just build a basic holding facility, rather than a true shelter. I hope this is just a passing thought born of tiredness, and not a serious threat to plans for a real animal shelter. One which will serve the community for many years and of which we can all be proud. I know you are busy with a lot of Homer's needs and probably would like to get one item out of the way so you can deal with something else. Doing it right the first time is the way to do that. You are very fortunate to have a dedicated and qualified shelter staff and volunteers. They have done a wonderful job in the facility they have and they are still smiling. In spite of their smiling appearances, however, they aren't licensed miracle workers and I'm afraid that the miracle police will catch up with them one of these days. They really do need a quality facility at a location with some space and potential for future expansion, a facility which will make their good work easier, and which will provide the space and amenities to serve them and thus the animals in their care. In this regard, the shelter staff has a pretty good idea of their facility needs and they should have a prominent role in any building design for the shelter facility and site. Please consider the importance of what you are doing and opt to do it right.

Tammy Farrow read a little piece that she wrote up about the Animal Shelter:

City Council, I am very excited about a new shelter for this town. It has been sorely needed for the twenty plus years that I've lived here. I came from Colorado working as an animal control officer and began volunteering for the shelter here and then working for the City at the shelter. In the twenty years since I left the shelter in Colorado they have grown and improved their shelter tremendously. Ours should have been doing the same. Twenty years ago they had twelve thousand permanent residents, which is kind of similar to where we are right now in the whole area and considering that the borough is included in this shelter issue, it should be considered. They are now at twenty four thousand, they doubled in twenty years. Tourism is also a big item there, lot's of people there. That ups it to one hundred and fifty thousand people in the area at this time. This is just to compare numbers as to opposed to what might be going to happen here. In the mid 80s thirteen hundred animals came through that shelter, with three hundred of them put to sleep. Now only eight to nine hundred animals come through that shelter with only twenty animals put to sleep per year. Education has been a big part of the reason and a very good spay and neuter program. We could do the same thing here. They also have a separate holding area for stray and bite impounds. Not having this option can be a big liability. They have expanded and grown, it is necessary to be in an area that can handle the growth and expansion of the shelter. The present site is inadequate. Please do not build a new shelter on the old spot. Let the offices and the trucks down there have that opportunity to use it. I say wait, wait until we've checked out other opportunities for a better place that is safe for the children and the families in this community to come and walk the dogs and learn about animals and their care and how to not have an animal overrun. Thank you.

Don MacNamara addressed the Council regarding the Ocean Drive Loop Sewer connection. He said that he does not know the fairest way to do that and that some of the home owners have some pretty big property down there. He commented that this is probably the reason that it has not gone through in the past. He suggested that maybe we could think about making one assessment per home site and when the homes are all connected in one place maybe they could delete the lot line and then later when they did subdivide, if they did, they could get assessed for the sewer connection. Just a thought. He thanked the Council for their time.

Sharon Minsch spoke to the change in the methodology rate, that the Council did have a good meeting, referring to the Committee of the Whole, and there were some interesting comments. She stated that she was pleased to see the direction of some of the Council's conversations were going. She relayed her confusion regarding Homer's goal in changing the methodology. She advised that she is coming from a place where they have been working for twenty years to go back to a one lot one assessment basis because of trying to get public water into the urban areas. So one lot is nine thousand dollars, the narrow pie in the front, and one is fifty four thousand dollars when they are all single family and all getting a one lot connect. She shared hearing comments about giving the community a shot at this and that she is concerned and does not think Kachemak Drive wants to be the guinea pig to try this. She told the Council that she does not think that anyone even knows that this is going on based on her contacts today, who, when she began discussion this, all looked at her like she was nuts. Ms. Minsch commented on some of the differences in the assessments in some of the assessment methodologies. When looking at the potential for fifteen percent over and above the actual amount on the bigger lots, using her property as an example, it would be another eight thousand dollars with the result that she would have an assessment of sixty thousand dollars for water and sewer and her neighbors would have ten, twelve and fifteen thousand dollar assessments. She wondered if part of the concern is for the boat yard and those people who own those properties. Maybe they can subdivide and those kinds of things. She encouraged the Council to keep talking about this stuff. She advised the Council that part of the information she got from Public Works shows that some of the lots are not being assessed the whole footage of them because of where the property drops into the Bay, yet her twenty thousand square foot lot with a quarter of it in the Bay is assessed the full square footage. She shared her concern about tearing up Kachemak Drive with the changes and updates coming to East End Road, a two or three year project if it comes in on time, since Kachemak Drive is where everyone is going to go. She told the Council that she does not have any clear answers to her questions about right of way issues and that when Kachemak Drive was improved there were no shoulders, no bike path, not anything, just the exact footprint of the road, because, as she understands it, we do not own the right of way to make it any different. So, she said that she is wondering how we have the right of ways for utilities and how that is all going to come into play. Ms. Minsch advised the Council that she just spent over five thousand dollars making her septic system work and putting in a new water holding tank for her property. She voiced her thought that she is one of the very few properties on Kachemak Drive that is not dumping untreated or partially treated stuff right into the Bay. She stated that if you walk that beach particularly this fall, October, you see the pipes coming out of that property and you see feces and toilet paper and garbage coming out of those houses. There are out houses and all of those things. She informed the Council that she is about as green as they come and something needs to be done to stop that, but there is not an assessment methodology that is going to encourage people's support. She expressed her thought that the current system of "all it takes is one person asking for it to be done" and then Public Works does a whole lot of work in actually figuring out dollar amounts and costs and all that kind of stuff. She voiced her opinion that this does not have a snow ball's chance of passing right now, but there might be a different process where if someone asks for it either a petition with a larger group of neighbors or a letter be sent out that says, "We've been asked to ballot, if fifty percent of you agree to ballot then we'll figure out what those costs might be and provide you with an opportunity to vote on it." She commented knowing that this is a tough thing to deal with, but she does not think her neighbors and her want to be a guinea pig for what could conceivably pass tonight and tomorrow assessments could be mailed based on the new methodology. She expressed her opinion that this Council and this town does a good job trying to get the public involved in knowing these kinds of things. This is a big change and has some far reaching impacts. She emphasized, particularly, with some of the comments she heard that it is felt this is a good place to try it because there's commercial, there's vacant, there's high water and all of those things, wherein, that makes it not the best area if the true goal is to get water and sewer out there, get rid of the outhouses, what is going into the Bay and those kinds of things. Better education of the citizenry, more effort into the front end and trying to come up with the methodology that the public would take. Ms. Minsch inquired if we own the right of ways along Kachemak Drive and can these meet in the middle, if that is the long term goal. She commented about zoning enforcement and that zoning issues, in her opinion, should not be complaint driven, everyone should have to live by the same rules and everybody should know the rules. She emphasized that if you are going to do it, then you have to enforce them and stand behind them or they don't mean the paper on which they are printed.

Maryclare Foecke spoke about the sewer and water and that she owns the property on the corner in the area of Kachemak Drive and East Road, a peculiar seven acres site that is rural residential lopped in there next to all sorts of other things. She told the Council that she is very concerned about how this process goes and that they will end up with a bill that will force them to sell. She advised that they looked to buy that lot to do something that really is in keeping with the spirit of Homer and did not want to buy the lot and subdivide the heck out of it and make money hand over fist for bluff property. She stated that if they are basically having to pay based on frontage on both Kachemak Drive and East End Road they are not sure what they will do. She voiced her desire to throw this into the equation, that they are in this peculiar spot that is right on the edge of the commercial where it leads into rural residential.

Larry Slone advised that he is ninety percent in favor of the Animal Shelter, that he liked what the one gal said about having a little bit more time to review alternate sites and since she is willing and some others seem willing to do a little leg work this might be suitable thing to do to grant more time. Regarding a little more mundane subject, Memorandum 03-57, traffic lights at the corner of Lake Street and the Sterling Highway, Mr. Slone commented on mentioning this before that this is a real dangerous intersection and that some sort of traffic device needs to be established there soon. He said that according to this letter from Rex Young on page 367 of packet the Department of Transportation now indicates that they have the funding and the equipment to put a light in presumably, interjecting the way he reads in, in the next couple of weeks before the tourist season starts. He noted that the statistics indicate that it is warranted and highly recommends that the Council take advantage of this. Mr. Slone addressed the Council regarding Ordinance 03-25 to limit the size and dimensions of retail and wholesale businesses, which just came down from the Planning Commission. He noted, that as he understands it, ostensibly the purpose is to, basically, limit competition to the home grown businesses from the big box stores and that it appears that the proposal at this point is to be a twenty thousand square foot maximum building size within the Central Business District and thirty thousand in General Business District. He shared his thinking that it might not do any good to put in a building limitation, first of all the business will probably specialize in a particular area such as groceries, general merchandise or hardware, and will still be providing the competition. He pointed out that the competition might even be worse in that sense, because the business will be forced to specialize due to the small size. Secondly, Mr. Slone noted coming down the pike in the next couple of months is also some very stringent appearance standards for the buildings, although that could change, but he said he doubted it and that he is sure it will come to fruition. It will make these new buildings conform to those standards and hence be much more attractive and much more appealing to customers. He expressed his thought that people are going to have a tendency to gravitate toward these naturally for that reason alone, consequently the long term effect is going to be negligible as far as the standards being able to provide protection for local businesses. He urged the Council to use caution in putting in those strict building size limitations on the proposed big box stores in the future and voiced his appreciation if the Council would bear this in mind.

Jeanne Parker commented on Council's agenda being pretty loaded and that she wanted to speak briefly to Ordinance 03-23, amending the City Code to make provisions for enforcing zoning code violation and that she is just hoping that this is going to address people driving on the beach and things like that and any of the zoning stuff that needs to be enforced, adding that there is no use zoning if it cannot be enforced. She commented on Ordinance 03-25, amending the code to limit the size on buildings for retail and wholesale, and that a lot of people have grown up here and watched Homer grow and change and Homer is very unique. She advised that she moved here and chose Homer for various reasons, that Homer is unique and most people that move here do not do it for the convenience of being or living someplace where you could get everything. You don't go to the end of the road to do that. Ms. Parker stated that she was very encouraged at the Planning and Zoning Commission to find out that it is in the Homer Comprehensive Plan that it is within the goals of Homer to discourage nationally owned big business corporations. People talk about jobs, one job is not as good as another and one business is not as good as another. A small local business that somebody created and made fit Homer is totally different than a bunch of consumer goods from some national place. Then we have to deal with it in our land fill and deal with all those aspects. She voiced her desire to see Homer head itself toward a sustainable community rather than a growth community. Ms. Parker voiced her opinion that too many people tend to think that growth is good economics, which in the world is changing and we cannot keep growing. Homer can be one of those cities that actually sees that and heads in that direction. She voiced her fear and advised that she is here because she sees Homer slipping away from that and has always figured that she can live and try and show her values by the way she lives. It has gone beyond that and now she and to come and speak to people, it seems like, more and more and more and keep expressing that she wants to see good values being continued here in Homer. She relayed that her grown children have left Homer and that she would like them to be able to come back here and live and that they will if they want to pursue a job here. She reported hearing that Anchor Point was considered for Fred Meyers a while ago and that one of the reasons it could not do it was due to not having good enough police and fire. She pointed out that there are lots of hidden costs in encouraging these big businesses such as if we have to beef up the fire department and beef up the police department to handle this big retail thing that is going to drive out of business these Homer Local businesses that have been here for years. She queried what is being traded and encouraged the Council to look around at the small businesses that are putting a lot of effort into remodeling right now and that there are a lot of business doing a really good job at that and who are trying to serve and keep Homer a beautiful, unique community that is a tourist destination for people all around. People do not come here because we have a Fred Meyer here or any other kind of thing you can buy at all hours of the night. She commented on the memorandum to CIRI and that she was happy to read that CIRI wants to work a little more with the Town Square Project and that she would like to see the City Council work a little more with the Town Square Project, which seems to have disappeared. It was shocking to be gone from Homer for a couple months and come back and find out that six years of work was being ignored and destroyed. She encouraged the Council to work with CIRI on the Town Square Project, the heart of Homer and shared copies of some letters from children who feel strongly about the heart of Homer, the trees and the live trees, adding that a lot of the trees are gone already. She told the Council that if they talk to a lot of youth in Homer, they will be told that area is the heart of Homer. Ms. Parker noted that it is undeveloped right now and guesses that it will need to get developed because of growth and economies or whatever one wants to call it, but it can be made beautiful and a Town Square can be created. She emphasized that she would hate to see the heart of Homer as a retail store.

Frank Griswold talked about the zoning enforcement amended code and that he first of all wanted to point out that zoning enforcement is not currently complaint driven and that this was tried years ago and that it did not work. One portion of the current proposal suggests that citizens now file civil action. He expressed his thought that this is not going to work any better and that he thinks it is a bad idea. He suggested that if Council does support that portion of this code they should allow, or should state that any tax payer citizen in the City has standing to file suit, instead of just implying that it is the people only within three hundred feet of a zoning violation. He said that he also does not think that there should be this optional fine, that he thinks in the code it says the City can impose a fine up to two hundred and fifty dollars, somewhere else there is a three hundred dollar fine and some where else there is a thousand dollar civil penalty or something, and that this is very confusing. He commented that he thinks it would be helpful to have a mandatory fine in a set amount. He noted that if your dog gets caught its twenty five dollars and it applies to everybody. He voiced his opinion that the same thing should be with a zoning violation and that the City shouldn't be able to arbitrarily decide how much and for whom. He expressed support for moving the site for the animal shelter and that there is a pretty good spot on Kachemak Drive that would fill the bill. He read the letter he sent to the Council today on the local bidder preference so that those at home, if they want to, can hear what he has to say on that.

On page 371 of the packet, Memorandum 03-64, from the City Clerk, states that no objections or negative issues have been reported or filed regarding the local bidder preference ordinance, it recommends that continuation of HCC 3.16.080 be approved. Continuation of the local bidder preference should not be predicated on whether or not anyone filed an objection. The Council is supposed to review the Ordinance 01-13(S)(A) and evaluate the process. Unfortunately, no information has been included in the packet to provide a basis for this review and evaluation. Many questions need to be answered:

How many local bidders have been awarded contracts that would otherwise have been awarded to non-local bidders? If none, this would explain why there have been no lawsuits or reports of negative issues.

What additional businesses have located and remained in Homer as a result of the provision of a minimal preference for local business in the award of City contracts? That was one of the reasons for doing this.

How much money has trickled down to the citizens of Homer in the past two years as a result of this policy?

How have overall finances of the City been affected?

How much money would the City have saved by awarding the contracts to the actual low bidders?

Hopefully, there are better reasons for enacting this ordinance than just the assertion that groceries and gas cost more in Homer. A reference to page 3 of the City Council minutes of April 23, 2001, where other reasons may have been mentioned, was missing from the packet. Subsidizing the gas and grocery bills of local contractors increases the cost of living for all of the other taxpaying citizens in the community and there is no guarantee that the winning bidder will recycle his profits within this community. Any competent local contractor should be able to compete on even terms with an outsider, who not only lacks local knowledge but incurs considerable expense transporting and renting equipment and housing employees. The City should not discriminate against outside firms who, in many cases, have expertise not available locally. The Deep Water Dock Project, for example, was completed ahead of schedule by an outside firm. Local preference bidding policies can lead to briefcase contracting where a local contractor with no expertise or equipment subcontracts the job and puts the local preference percentage in his pocket. Local bidder preference only stands to benefit a very select group of private business interests. This policy discourages free enterprise and is patently unfair. It should not be continued unless a thorough review and evaluation reveals strong evidence that the public interest has been served by having this policy in effect over the past twenty four months.

He commented that on page 382 of the packet there was a quote or a cite from the minutes of April 23, 2001, where somebody suggested to consider business incentives other than bidder preference such as tax incentives or something on water rates that would benefit all of the City business. Mr. Griswold voiced his preference for the incentives. He commented on Ordinance 03-15, the Spit rezone, and that he was out there walking today and saw a boat, called the Inlet Raider, that was strapped down to a trailer, he thought, on lot three and that the trailer was anchored. He said that he did not know if "you guys" realize how small of a building site is on those lots. He advised the Council that he has a plat and that the first one hundred feet from the Spit is right-of-way and where the lots start there is very little dry land. He informed the Council of a note at the base of the plat that says, "These lots, in their entirety, could be subject to flooding during a combination of very high tides and strong wind/waive action. He voiced his opinion that the only way to do anything out there that he can see is to put it on pilings and the only way that something major can be put on pilings is if it pays off and that it looks to him like that would have to be a hotel or motel. He stated that he did not think the City should be encouraging any type of development on these lots and that the only thing he sees that these lots are good for is Open Space Recreation, which is, according to the Comprehensive Plan, what the City is supposed to be pursuing. He told the Council that they should be buying those lots and converting them to Open Space Recreational and should not be encouraging some sort of development. He pointed out that the Comprehensive Plan says that the Council is supposed to separate conflicting uses and that they are not supposed to put one conflicting use next to another. There is nothing adjacent to these lots. When looking at the zoning map, all of these properties surrounding this are either Open Space Recreational or Marine Industrial and that there is not a single lot touching these that is Marine Commercial. The closest being a City owned lot on the west side of the Spit that, in Mr. Griswold's opinion, should be zoned Open Space Recreation. He said that it is clear to him that it is clearly an illegal spot zone. He commented about those arguments about having better vista because of the set back requirement, a ten foot difference, lot one is three hundred and twelve feet wide, so whether there is a two hundred and seventy two foot building or a two hundred and ninety foot wide building the vista is gone. He stated that he wanted to see and would like to read, "Real estate agent John Calhoun described these lots as postage stamp size, there must be clear and great public interest reasons to rezone small parcels and the smaller the parcel the greater the public benefit." Mr. Griswold noted that the City Attorney on February 25, wrote to the Council and said that in the end the court is looking to see if the rezoning is motivated by community benefits rather than primarily to benefit a particular property owner. He told the Council that he thinks it is pretty clear that this does not benefit the public. He thanked the Council.

DeWaine Tollefsrud commented that he shares a lot of things with Jeanne tonight, one of which is the ability to sign my name and talk at the same time. He advised that it was not his intention to come in and speak tonight, but that he finds that there are a lot of things on the agenda that he really has to weigh in on. He voice support for the animal shelter, commendation for Sherry Bess and her crew for their work in such a tiny little spec and astonishment at the amount of good that she is able to do. He shared his opinion that if she was given adequate facilities the magic and educational programs that she could do would be staggering. He echoed Jeanne Parkers comment on Ordinance 03-25, adding that growth is not always a positive thing and that growth for growth's sake is not always good. He advised that he was, after being gone or a short period of time this past winter, struck by the silhouette of the City turning from this nice jaggedy silhouette with all the trees to becoming rather flat and homogenous. He reminisced about travel to Homer for the fist time about twenty years ago and going through Soldotna, and inquired if Homer were heading toward that trend. He said that he would really be concerned if that were going to happen here. He noted that Homer is in a really unique point in history and the growth of the town in that it seems to be moving from a little piece of rural Alaska to being a little piece of every where else. He reported on being very fortunate that he is able to travel around the lower 48 and Alaska and that he has become nervous about the idea that you can be some places in Fairbanks and not know that you are not in Dayton Ohio or a little strip mall in Fairbanks. He urged the Council to keep the character of the City of Homer that attracts, not only the residents who live here, but also the visitors who come here to get a true experience, such as it is, of rural Alaska.

Dan Young, owner of Lot 3 in the rezone area, addressed the Council regarding Ordinance 03-15 and voiced disagreement with Frank Griswold's comments. He noted that these pieces of property, at this time, are private and were zoned Marine Industrial. He voiced his opinion that the rezone will soften the impacts and as a result of that it is in the public interest as well as his own interest. He advised the Council that he was not the one originally initiating the change, but that he does think it is the wise thing to do. He said that he wants to reassure the Council that there has been no hood winking going on as was mentioned in an article in the paper. He pointed out that they requested it, paid the $100.00 and hoped that it would happen.

Ray Steiner commented on listening to Frank Griswold and that he always finds this very interesting and that we live in America so everyone has a point of view and Frank seems to have more than the rest. He advised that he owns the part of the property to be rezoned on the Spit, lots 1 and 2. He reported that lot one may be going back to Rita Turner and Frank Zeller. He commented that what he finds interesting is that when looking at those pieces of property and their location that something could be done that would enhance the tourist industry. He noted that Marine Industrial has some applications that this could still be done with and that Marine Commercial provides a broader opportunity to put businesses on there that might be good for tourism. He emphasized that he personally does not have a desire to put a hotel in there and that he thinks Jon Faulkner is doing a pretty good job. He interjected that he does not think those particular lots are large enough to develop into hotels, would not have the parking facilities, and that it just would not be practical. Mr. Steiner told the Council that he, personally, would not be opposed to having a restriction that hotels could not be built and that it would equally be valid to say that these lots be rezoned to commercial rather than industrial and benefit the City as far as tourism is concerned. It would be nicer to see something attractive and that would be of an advantage to business in the area and for tourism sales, rather than just using these lots for storage for crab pots or something else. When driving down the Spit one can see many mixed uses and differing ideas of attractiveness and how things should be on the Spit. He reiterated his willingness to exclude the hotel or motel situation if that is what would actually be important to this decision, noting that his concerns are not to go in that direction. He informed the Council that he would like the opportunity to do some other businesses without having to go get a variance. He voiced appreciation for the opportunity to come and say this to the Council. He stated that he is absolutely looking out for his own interests and that is the American Way.

Councilmember Fenske requested permission to ask Mr. Steiner a question. There was no objection of the Council.

Councilmember Fenske ⁽¹⁾ prefaced his question by noting that in the newspaper there seemed to have been some question by Mr. Griswold as to whether or not Mr. Steiner and he were partners in some project or something like that. He asked Mr. Steiner if he could clear this up and if they, he and Mr. Steiner, know each other?

Mr. Steiner responded that they are not in partnership now and, rhectorically asked, "But who knows the future, John?" He said that he finds all this kind of stuff real interesting, that he knows this is human nature, that he is not offended by that or other people's opinions about how things may be. He noted that if he were to give his personal opinion about all that, it would be a little more colorful. He reiterated that, no, he and Mr. Fenske have not done any business nor are planning to do any business together ant that as far as knowing each other, that it is just on a public recognition basis.

Councilmember Fenske voiced appreciation for Mr. Steiner's Comments and apprized the Council, that he had asked Mr. Young if he had some hidden interest in Mr. Young's property that he was not aware of and Mr. Young assured him that his name was not on anything.

Angie Newby, resident of Oscar Munson Subdivision, thanked the Council for their support in considering the public sewer system coming into Oscar Munson Subdivision. She relayed the history of coming before the Council on many occasions regarding the sewer and that she thinks, this time, if there is a properly structured abbreviated project that it will work and all will be happy about that. She pointed out that Oscar Munson is a very unique subdivision, developed back in the 70's, has over one hundred lots and the majority of those lots are one hundred feet wide. She commented that the majority of the lots that will support the sewer system are developed with homes. She advised the Council that they purchased their home in 1988, and it is on a double lot and is one of less than five people in the subdivision with larger lots. Their lot is two hundred feet wide and is considered as one tax parcel number. Their house is built in the middle of the lot. She acknowledge the Council's struggle, for very valid reasons, with the water and sewer assessment districts. She noted that once a lot has water and sewer the opportunity for subdividing is very ripe. In the Oscar Munson Subdivision almost everyone has developed their lot. She encouraged the Council to select an benefitted area calculation that is equal and not one wherein the larger lots are charged double as under the proposed method. She reiterated the situation wherein they have a larger lot, that already has water, with their house right in the middle, therefore it will not be subdivided. She advised that their's is the largest lot in the seawall project and they are happy to pay a double assessment because they are getting a twice as much shore protection/double benefit; however, for sewer they are getting the same benefit as everyone else. She pointed out that there are only three properties that exceed one hundred feet, themselves. Dr. Eneboe, on the point who probably will not want to participate, and an undeveloped lot.

Joanna Tornes commented on traffic calming and East End Road, adding that reconstruction of East End Road is scheduled to take place very soon and voiced concern that there might not be enough time to provide input. She emphasized the need to level out the playing field between the pedestrians and the vehicles, and that the rights of the handicap, the carless and children should not be subordinate to drivers as is the current situation. She stated that it is time for curb extensions. There needs to be a shorter distance for pedestrian crossings at places such as Ben Walters and heavily used areas, which are almost impossible to cross at times. Roundabouts keep traffic moving more continuously as compared to traffic lights and stop signs which halt traffic and slower traffic means more volume. She commented about the petition that was signed by people who are in favor of roundabouts and these additions reduce noise and dust, beautifies the area, and makes an easier access to East End Road from the side roads, which is presently difficult at times. Roundabouts have been used in this state and Juneau has one on Admiral Way. She advised Council of the following websites: alaskaroundabouts.com; trafficcalming.org and walkinginto.org. She voiced her opinion that these additions are not too expensive, are cheaper than a traffic light and that there is money available. She pointed out that it helps tourism, makes the street safer and allows more green space.

Valerie Connor commented on the amount of agenda items. She voiced her disappointment in the changing face of Homer and with some of the development that is going on. It seems like people come in and they chop all the trees down, bring in a bull dozer in and level it off and put a big ugly building in there. She stated that she has been here a long time, loves this town and would like to see it be a beautiful town. She shared how hard it was to see the trees being cut down by CIRI and that she understands it is within their realm to do and perfectly legal. She relayed her vision that some day that area would be a town square with trails, a park and some businesses. Then all of a sudden it was like that dream was a shattered just within a couple of minutes and that there would be a big retail store right in the middle of town. She told the Council that she does not want the heart of Homer to look that way, which would be a travesty and should not happen. Ms.Connor emphasized that this is an artist town and people in this town are passionate about trees and greenery and beautiful things. If a store such as Fred Meyer is to come to town then it should not go there and that the size should be limited to 20,000 square feet which is plenty big and should provide another grocery store, but not all the other stuff. She commented about "that place" in Soldotna and that it is weird and that she cannot shop there because there is too much stuff. She wondered if that many choices are really necessary, such as twenty different kinds of cans of tomatoes, that she just wants a can of tomatoes and does not want to go up and down every isle. She voiced her opinion that "this" takes away from the fabric of this community. She commented about being on the cusp of change and pled that this is an opportunity to really make some wise decisions regarding box stores and trees, to make this town continue to be a cool place. She encouraged support of the Animal Shelter, noting the crowding in the current shelter and the hard work of the staff to make the best of what they have. The town is growing and there is a need for an Animal Shelter worthy of the population.

Donna Beran agreed that the agenda is long. She strongly suggested that the Council take the recommendation of Planning regarding Ordinance 03-25, limiting the size of stores. She commended and voiced appreciation to the Council for all their hard volunteer work. She told the Council that she would hate to see "that kind" of a development in the heart of town, that would discourage visitors and that there is a large Fred Meyers eighty miles up that road, which is close enough for her. She voiced concern and confusion regarding the uncertainties of what is going on with the CIRI land and this town. She acknowledged the hard work that has been put into the Town Square Project and hoped that good rapport will continue, even though we could not save all the trees. She reiterated Ms. Connor's comments regarding CIRI's rights. She urged private property owners to find the line between that private ownership and civic responsibilities and that she would like to see us move in a direction of having responsibility to our neighbors, adding that what we do on our property impacts our neighbors. She pointed out that these are the reasons for ordinances and laws, that people don't take responsibility, trash their land and pollute things. If people don't like those kinds of ordinances then perhaps they should start behaving in a manner so that those ordinances do not have to be imposed. She told the Council that the Animal Shelter has to get better, that too many critters die there just from freezing to death, which is despicable. She agreed with Linda Feiler. She noted that a lot of good people have spent a lot of good time just dealing with that situation that has existed for a long time. She voiced strong support for a comprehensive plan for the Animal Shelter. She also commented on Memorandum 03-65, changing the methodology for water and sewer assessments, adding that this is the first she ever heard of it and that she does reside in the area that would be affected and that her property would be under the new way and would be double. She said that she does not see why that should be voted on before finding out if the area wants water and sewer. Seems like most of the people in that area probably already have systems in place. Ms. Beran advised that she has updated her system recently, and disagrees with the methodology being considered nor that it is the right way to go.

Mr. Griswold wanted to speak again.

Mayor Cushing said everyone gets a first shot, first and then asked the Council if they want to open the comments up for second rounds. Council indicated that they did not want any second rounds.

Rika Mouw quickly commented that everyone was very eloquent about all the different points on the agenda. She said that she wanted to put in her two cents about the maximum size of buildings, adding that she spoke at the Planning Commission meeting and felt then that the twenty thousand was a good size limit and, that even thinking about it afterwards, she advised, that she thought twenty thousand is a hug sized building. She voiced realization that there are several buildings that are slightly higher than that, with Eagle being quite a bit higher. Ms. Mouw expressed strong feeling that the twenty thousand is huge for the Central Business District and that she wanted to put in one more vote for a twenty thousand foot cap/maximum. The character of Homer just would be destroyed with many, many more buildings of that size. There are already enough of that size. Homer is a small town everybody here would like to maintain that character.

RECONSIDERATION

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 April 14, 2003 Regular Meeting. Recommend approval.

B. Ordinance 03-23, Amending Homer City Code Chapter 21.30 to Make Provisions for Enforcement of Zoning Code Violations. Planning Commission. Recommend Introduction, Public Hearing for May 12 and Second Reading for May 27, 2003.

Placed under Ordinances as Item C. During the action under Ordinances the Council scheduled public hearings for May 12 and 27 and Second Reading for June 9, 2003.

C. Ordinance 03-24, Of the City Council of Homer, Alaska Appropriating up to $30,000.00 for the Small Boat Harbor High Mast Project from the Port Reserve Fund and Authorizing the City Manager to Execute the Appropriate Documents. Requested by Public Works and City Council. Fiscal Note: Appropriated from and Expended from Acct. 415-380. Recommend Introduction, Public Hearing for and Second Reading for May 12, 2003.

Memorandum 03-49, from Public Works as backup.

D. Ordinance 03-25, Amending the Homer Zoning Code to Limit the Size and Dimensions of Buildings Used Primarily For Retail or Wholesale Business. City Council. Planning Commission. Recommend Introduction, Public Hearing for May 12, 2003, Second Public Hearing for May 27, 2003 and Second Reading for May 27, 2003.

Memorandum 03-60, from Acting City Planner as backup.

Placed under Ordinances as Item D.

E. Resolution 03-62, Of the City Council of Homer, Alaska Approving and Accepting the Renewal of the Joint Use of Equipment and Facilities for the Community Schools Program in the Amount of $5,000.00 and Authorizing the City Manager to Execute the Appropriate Documents. City Manager. Fiscal Note: Budgeted in Acct. 100.5812.175. Recommend adoption

F. Memorandum 03-61, 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 public entity. (Land and Property Negotiations) Recommend approval and conduct under New Business as Item A.

Deleted by consensus of the Council.

G. Memorandum 03-62, from Mayor, Re: Reappointment of Sue Mauger to the Library Advisory Board and Melvin Strydom to the Port/Harbor Advisory Commission and Appointment of Gail Parsons, Connie Alderfer, Ron Senungetuk, Asia Freeman and Dave Anderson to the Public Arts Committee. Recommend confirmation of reappointments and approval of appointments.

STARK/BECK - MOVED FOR THE ADOPTION AND/OR APPROVAL OF THE RECOMMENDATIONS OF THE CONSENT AGENDA.

VOTE:(Items A, C, E and G.) YES: NON OBJECTION UNANIMOUS CONSENT..

Motion carried.

Mayor Cushing called for a recess at 8:47 p.m., reconvening the meeting at 9:02 p.m.

VISITORS

A. Barry Andres - Big Brother and Big Sister Program in Homer.

Mr. Andres gave a brief overview of the program in Homer, which began about six months ago. Right now the program is "site based" and the intention is to evolve into a "community based program". The Big Brother and Big Sister Program has existed about 100 years. A site based program is funded through grants and a community based program is funded by the community. Mentors, Big Brothers and Sisters, are High School students and generally young adults, although in Homer some of the mentors are in their 30s and 40s. Right now the site based program is a one hour a week program commitment with the plan to evolve into more one on one time spent with the children in the program.

ANNOUNCEMENTS/PRESENTATIONS/BOROUGH REPORT/COMMISSION REPORTS

A. Mayoral Proclamation Re: Youth Week May 4-10, 2003.

B. Memo 03-66, from Fenske, Re: Travel to Visit with Senator Lisa Murkowski.

Nancy Lord, Library Advisory Board Chair, and Claudia Haines, Capital Campaign Coordinator, reported on the Board's site recommendation and fund raisers.

The Library Advisory Board deliberated on the best site for the new library and narrowed the choices to the Hazel Avenue lots and the University land that abuts Pioneer Avenue. The Board was divided on which of these was the best site. However, given the need to move forward in the most timely manner and our understanding that the University land would not be acquired by the City within the next three months, as well as the uncertainties of access and utility development of that property and uncertainties regarding adjacent property development, the board recommends the Hazel Avenue lots. If this understanding about the University land is incorrect, we would like to know that now. Our recommendation of this site is contingent on the commitment of all eight Hazel Avenue lots, which are already designated for public purpose, to the Library Project. This concept would involve a Library building, room for future expansion, parking and greenbelt, trails, and landscaping. We ask that the City Council as soon as possible adopted by Resolution the selection of the eight Hazel Avenue lots for the new Library site and that a Request for Proposals be issued immediately for the selection of an architectural firm to begin design work.

Mayor Cushing and Councilmember Stark stated that they each would be bring forward Resolutions. The Mayor for the Hazel Avenue Lots and Councilmember Stark for the University Land.

There was quite a bit of supportive and interactive discussion.

PUBLIC HEARING(S)

A. Saltwater Drive Water and Sewer Improvement/Assessment District.

Frank Vondersaar strongly objected to and opposed the formation of the Saltwater Drive Water and Sewer District. He stated that from his own personal standpoint he did a cost benefit analysis and putting in City sewer and water is all extra cost and no benefit. He voiced his opinion that sewer and water at that particular site is unnecessary and overpriced at its current estimate and that the current estimate is about half of the actual cost if done right. He advised the Council that the reason he thinks it is low is the bluff, the down hill portion, on Saltwater Drive is extremely unstable, noting the Lawlor situation wherein they lost half of their lawn into the Bay. He suggested that if a fifteen foot trench is dug, parallel to the bluff within one hundred yards of it, and if not engineered very well and constructed with special techniques, more than likely there will be a lot of other big chunks fall into the Bay. In order to overcome that, according to Mr. Vondersaar, the costs are going to go up significantly higher than estimated in what he got in the mail. He summarized that he does not need the sewer and water, does not want the sewer and water and really does not want to pay for the sewer and water

Dr. Bill Marley testified that he has four lots on the Saltwater Drive LID and that he is for this district and has been a proponent of it all along. He voiced appreciate of the fact that the City, in this case, is willing to pay fifty percent of the cost, which is just fantastic and that economically, right now, is the best time of all ever in terms of bonding and financing of such a project. It is just inevitable as time goes on that sewer and water needs to go out in that direction and needs to go out there for other people to connect to it, further up the line. He reported that sometime ago, couple of years ago, in the summer time when the run off was not so great they did a cholera form bacteria count at Bidarka Creek, which runs through their property, and the report from the state was that it was three times higher than that which was acceptable for recreational use. He pointed out that this project dovetails in very well, in terms of engineering, with the Hillside project and certainly has to be a project that is in the best interest of the health and the future of the City of Homer. He expressed his support and that by their count it is well over sixty percent of the people supporting it. He interjected that Lyndon Johnson got elected by sixty one percent of the people and never got off his high horse for four years and so he feels pretty good about having over sixty percent of the people in support.

Philip Gordon commented about being a financial pigmy, therefore, that he does not think this improvement is such a great idea, adding that he makes all of twenty three thousand dollars a year. He relayed comments from Carey Meyer, Public Works Director, and Dan Gardner, Public Works, that he will probably end up paying in excess of thirty thousand dollars, not to mention the monthly charges. He emphasized that this is a very considerable part of his income. He noted that this is his own personal view, representing just his own personal problems. He advised the Council that he thinks there are bigger problems with the project such as the erosion issues and that the he has discussed this matter with Mark Kinney, at the Soil Conservation Service, a magnificent resource. He apprized the Council of his acquirement of a compendium of research on erosion on the bluff and that he learned a lot. He noted that he has been working hard to control that erosion since then and had a another conversation with Mr. Kinney last week that he thinks is especially pertinent. Mr. Kinney, according to Mr. Gordon, is deeply concerned about this project because of its potential to increase mass wasting on the bluff face. Mr. Gordon said that this is significant to him as well and that he understands that the Council's primary interest in this project is not to increase mass wasting and erosion on the bluff face. He asked the Council to let him give them just a brief idea on what Mr. Kinney said and why he said it:

Basically there are number of sedimentary layers. Some of them are impermeable. As a result sediments below there are fairly dry. Toward Bluff Point the bluff is much higher, much more stable, not perfect, but more stable that what you'll find East of West Hill Road. The bluff face is lower and much more prone to mass wasting, such as the caving that the Lawlors experienced. One of the primary reasons for that is that those sediments are saturated and water plays a wonderful role if your goal is to place the land into the surf. The plan is to cut ten, to twelve, to fifteen feet deep through impermeable clay layers and coal layers. How would it be possible to restrict surface run off from finding that breach in the impermeable layers, percolating down and finding its way out toward the bluff, destabilizing the bluff. Mr. Kinney did some sketches that thought that there may well be ways to mitigate that particular problem, which are not nearly as cheap as the standard design of just cutting. laying a line and backfilling.

He suggested that it is very strongly in his interest, the rest of the property owner's interests and suspects it is in Council's interest not to destabilize the bluff. He urged the Council to not necessarily abandon the project, but to take some time and get the facts to see if this will destabilize the bluff and find out if there is a way that it won't destabilize the bluff and how much that will cost. He voiced his opinion that it seems like a good idea to find out the data if it is going to cost a great deal more before the City Council approves to proceed with this project.

Maureen Moore apprized the Council of her objections and many concerns regarding the LID process. She pointed out, in her opinion, there were and are discrepancies and flaws in the process. She commented on the following:

Petition process wherein any property owner may initiate a petition to form an LID and that there are no guidelines. Requires fifty one percent of assessed value, which gives more weight to the larger properties.

The same form is used for the second time around but the rules are changed and objections must be filed in writing.

There a lack of financial specifics and there is no requirement to properly disclose the costs.

Ms. Moore stated that, although not an economics major, she has enough sense not to apply for a loan for an undetermined amount, interest rate and term. She commented further on the LID formation process that resulted in actions she believes to be unfortunate for herself and the image of the City wherein persuasive letters were sent with the petition that contained information that was not reiterated in a letter from the City Clerk dated April 8th. She relayed the history of the Saltwater Drive water and sewer LID, as she sees it and commented on the allowable fifteen percent overrun. Ms. Moore voiced concern that here assessment could easily be as much as three hundred and six dollars a month, which does not include the month service or cost of tying into the system. She pointed out that there are many variables that could impact both the physical project and financial cost of the project. She suggested that the Council consider changing the process to eliminate confusion, more clearly define the LID, provide more and better information, make the rules clear and to, most importantly, provide the proper financial information. Ms. Moore apprized the Council that she has been in the same position that they are in as Councilmembers. She asked that the Finance Director provide information on availability of funds, interest rate and terms of repayment.

Eric Belanger noted that the previous speakers covered a lot of the issues that he is concerned about as well. He advised the Council that approximately seven months ago with the understanding that this had been voted down and was a dead issue, he made the decision to install septic and water systems. Approximately three days after doing so Mr. Marley approached him and mentioned that he was possibly pursuing again opening this issue and that he advised Mr. Marley that he was not interested. He stated that since then he has not received any petitioning, not received any formal information regarding this project, and that he did receive a certified letter from City Hall telling him that there would be a meeting and to be here tonight. He voiced his obvious opposition for financial reasons and that he is on the bluff side and is very concerned about a perforated line being creating on the outside of his property adding to the erosion of his property. He commented on the canceled neighborhood meeting and that he would like the opportunity to have another meeting to discuss and focus strictly on this issue. He informed the Council that he will be sending in his vote with maybe some reasons why he is opposed to this district.

Edward Bond informed the Council that Maureen Moore is his wife. He reiterated his support for some of the things she said about procedural things that the Council might have to deal with and voiced his hope that they would. He stated that the bottom line is, "show me the money". He said that if it is economically affordable and feasible he did not know why anybody would be opposed to not having the service. He emphasize more than once that he did not want to put words into anyone's mouth. According to the information received in the original letter with the petition it the assessment would have been one hundred dollars a month and the water and sewer fees would be about seventy five dollars a month. Mr. Bond noted that this would be feasible for them since they have their water hauled and it costs one hundred and fifty dollars top one hundred and seventy five dollars a month to do that, so it was a trade off. The financial picture changed and made it an unaffordable thing and the picture is not real clear. He voiced concern that they might be forced to sell their property just because they cannot pay for the water and sewer. He suggested that the Council consider these improvement districts before they go out and that maybe they can get some information from the City Financial Clerk as to how much this is actually going to cost and it might end up being very affordable for everyone and more desirable for those who now have objections. He thanked the Council for their time.

Jackie Eisenberg said that she has heard all kinds of stuff tonight that the City is growing, animal shelters, libraries and everybody has their own needs and wants and ideas and you can't make everybody happy. She advised the Council that she definitely has a problem with the City water and sewer coming into Saltwater Drive with what is being presented in the way that it is being presented. Philosophically not everyone does want water and sewer and is it inevitable that it is coming, she suggested that it is not. There are lots right in town that do not even have water and sewer, because they chose not to. She did not agree that the water in the area is unsafe, add that she drinks her well water, although it does come out brown, but the Brita Water Filter makes it just fine. The cost for the Saltwater Drive LID are far above that of the other districts. Back in 2001 when all these LIDs came up the average range was between eight and thirteen thousand dollars, pretty comfortable figures. The Saltwater Drive assessments have always been between twenty and thirty thousand dollars which exceeds the assessed value of a number of the lots in the district. Since the 2001 LID failed in the Saltwater Drive district, she advised, that she has taken steps to put in a twenty thousand dollar mound system that she is quite content with and that she, personally, is good for another twenty years. Ms. Eisenberg noted that everyone has their own preferences, Phil with his out house and others are happy with whatever systems they have and have made decisions based on the fact that this thing did not pass. She acknowledge that in 2001 the understanding was that in the future the Saltwater Drive water and sewer would be assessed at the seventy five percent level, with the assumption that if it did not pass at fifty/fifty it would not pass at the seventy five level. She commented about the history of the ninety day reinitiation period and that there is a lot of grey area. She commented on the voting wherein non objections and non responses are counted as bing in favor of the project which does not seem fair since there are exemptions that should not be counted. She commented on the persuasive letter that everyone received, quoted a number of thirteen hundred dollars annually, at two and one half percent over a period of twenty years and that is what was voted on in the initial petition to get it to go this far. She pointed out that she is a book keeper, ran some figures and came up with some very, very different numbers: A four thousand dollar connection fee, which is low in the estimate she has heard; throw in a one hundred dollar monthly utility bill100, which is fairly low for a large house; even with the best case scenario two and hone half percent over twenty years would be a two to three hundred dollar range per month and using the worst case scenario and take the project fifteen percent over budget at six and one half percent interest over ten years would equate to over five hundred dollars per month for payments, which is excessive and not a reasonable figure. She agreed with Mr. Bond's comments and if for a hundred bucks they could do this for the greater good of the community that would be wonderful and she would be all for it. She pointed out that they do not even know what they are voting on, because people can vacate lot lines, subdivide and all kinds of things and reiterated her previous comments regarding assessments and terms.

Mayor Cushing called for a recess at 10:24 p.m., reconvening the meeting at 10:33 p.m.

B. West Lake Shore Assessment District Completed.

There was no public testimony.

C. Ordinance 03-20, Of the City Council of the City of Homer, Alaska, Amending the Homer City Zoning Map to Zone Portions of the Annexed Area Identified as Study Area #6 per Attached Exhibits A and B. Planning Commission. (First Reading Postponed on 03/24/03 to 04/14/03, Public Hearing 04/28/03, Second Reading 05/12/03.)

There was no public testimony.

D. Ordinance 03-21, Of the City Council of the City of Homer, Alaska Repealing Chapter 21.63 Contract Rezone from the Homer City Code. Planning.(First Reading 04/14/03, Public Hearing and Second Reading 04/28/03. )

Frank Griswold testified that it is real ironic that in 1981 the City entered into a Contract Rezone with Campford Fisheries on the Homer Spit where it changed the zoning on that property from commercial to industrial. Now the Council is considering changing three lots on the Spit from industrial back to commercial. The Campford rezone ended up in the Supreme Court, the City lost when it tried to rescind that rezone. The State sanctioned contract rezone, by statute, before 1985 and the City assumed zoning authority in 1982. When the City took over zoning authority it did not just get the right to rezone as it pleased and can only rezone in accordance with the authority that the State gives the Borough and the Borough gives the City. Here was this enabling statute before 1985 and then the legislature took it out. It is not just the Homer Planning Commission that thinks this contract rezoning is a bad idea. Attorney Lee Sharp, who was for a period of time Homer's City Attorney, gives planning and zoning training seminars throughout the state and is currently on the Planning Commission in the valley. Mr. Griswold read a portion of the letter that he gave to the Council:

Attorney Sharp says: Prior to its revision in 1985 Title 29 of the Alaska Statutes and specific authorization for the questionable practice of contract zoning. The language was removed from the statutes in the 1985 revision on the basis that since zoning was a legislative matter which could not be contracted away the statute invited municiipalities to engage in a zoning process that had been rejected by courts in other states.

He commented, on page two of his letter about page two of March 1, 2002 article by Attorney Sharp, that platting and zoning regulations apply uniformly to all similarly situated property within a particular zone. For a particular type of subdivision the platting regulations apply to that subdivision and all similarly situated subdivisions. That there is a certain quid pro quo in platting and zoning regulations. Property owners are required to follow the applicable rules, knowing that everyone else has to do the same. If the regulations were not uniformly applied and special favors were granted the regulation of the subdivision and use of land would become a sham. Mr. Griswold voiced his opinion that, historically, City officials have handed out zoning exceptions like candy and that they make these "sweet heart deals" with private people for their private interests, the community needs are not their number one priority and that they bargain away, in contract zones, any future ability to change that zoning. He commented on the Baycrest Motel rezone in 1979, that he does not understand what that was all about, and that it is interesting to look at the contract rezones that were done after the legislature took the language out of the statute. He listed contract rezones and commented on the abuses thereof: Baycrest Motel, 1979; Campbells for Campford Fisheries, 1981; Brandt/Jay, October 1985, a rezone for urban residential to CBD for retail office and residential use with a buffer required such as fence or landscaping, now a vacant lot; Guy Rosi Junior, September 1986, Main Street lot zoned CBD; Newby, May 1987; David Boughton, residential office to CBD, currently the Office for Freedman, Zeller, Bloom and Freedman. Mr. Griswold commented on the history of the Rosi contract rexone citing a zoning complaint, the City's lack of enforcement, the denial of a conditional use permit, letter from the City dated May 27, 1986 to Rosi regarding the denial and contract rezone, that there was no community interest that it was strictly a private deal and he also cited some issues regarding the conditional use permit that was supposedly supposed to increase the tax base for the City of Homer. He emphasized that this was just an excuse to evade the zoning laws and since that time the property was involved in another rezone. He also commented on the Newby rezone for a private racket ball/health club facility, another "sweet heart deal", that Mr. Newby was the City Finance Director and Head of the Planning Department. He pointed out that the Newby rezone is now the home of the Seldovia Village Tribe Health Center, not a health club, and that there was no need for this rezone. He suggested that if health clubs are such a great community need it should have been added to the zone. Mr. Griswold commented on the Boughton rezone and the Planning Commission minutes that noted one of the factors considered was the existing code violation if the contract rezone were denied. He reiterated comments about those who see this Contract Rezone as a bad idea. It is now time for the Council to get strict, get rid of this, get serious and start plugging some of the loop holes. He altered the article on variances by Lee Sharp, the anonymous saying to read: Remember, my friend, a contract rezone is a special dispensation to violate a law that the rest of us must obey.

Ray Steiner commented that he finds this interesting and that as far as he knows only one person has objected to this and that the objection is as valid as his wanting this to be rezoned. He noted that there did not seem to be a problem with rezoning to Open Space Recreational. He advised the Council that he is not in favor of repealing contract rezone, that he thinks this is a good thing and that everything should be looked at individually. He suggested that the negative opinion is that every time these things are done they are sweet heart deals. He stated that he is not coming here for a sweet heart deal. Mr. Steiner said that he comes as a citizen and property owner, which he has been inside the City of Homer for going on twenty one years, that he has owned a business and conducted it in a straight forward manner, that he does not even have a violation on his driver's license, that he pays his taxes and raises his family. He voiced his opinion that he is a good citizen, so when he comes and asks for something that he is looking for the Council, his representatives, to decide whether or not what he is asking for is worthy of consideration and if they say, yes, it is, yes, and if they say, no, it is, no. A yes vote does not mean that it is a sweet heart deal. He encouraged the Council to leave this option open and if the City decides something should be rezoned then it should be able to be rezoned.

Angie Newby commented that she was not going to address this matter, but would since her name was brought up and just to assuage everybody's apprehensions about the sweet heart deal they got there. She advised that when she came before the Planning Commission for a Conditional Use Permit for a racket ball court in 1986, which subsequently went away due to the tax law changes, general partnership, funding for the whole thing and it just did not make any sense. That particular use of that property has not really impacted or benefitted us subsequently since that was for a very particular conditional use to construction that particular facility on that property. She noted that now they have done whatever was appropriate zoning. She expressed her opinion that the issue of contract zoning is misunderstood and that it sounds like the Council has some concerns. She commented that she thought their application was for a conditional use and that she did not look upon it as a contract rezone. At that time the community dynamics and the support of the facility and lack of that particular use required a conditional use any where, that this was not an allowable use anywhere. She suggested that the Council might want to think about this in that there are a variety of structures or business enterprises that pop up because of their uniqueness but do not fall into any appropriate zoning and are only conditional use. If conditional use and contract rezone are the same thing, then she discouraged the Council from eliminating it, otherwise the Council needs to take a look at all things in the Planning and Zoning criteria for commercial use and see how many of these are actually just conditional uses. .

There was no further testimony.

LADD/FENSKE - MOVED FOR THE ADOPTION OF ORDINANCE 03-21 BY READING OF TITLE FOR SECOND AND FINAL READING.

Council discussed pros and cons, some points made by Council regarding contract rezone are as follows:

Is analogous to spot zoning.

A tool for a specific purpose to provide a ceratin type of use contract between the land owner and the City.

If repealed and it is found that the City wants it back, can it be add it back to the Code.

City Manager Wrede, in response to the Council, advised that he agrees with the City Attorney, who generally feels the City would be better off without it, and with Mr. Griswold. He noted that it is a tool that can be used in Planning and Zoning, however, it is generally accepted that there are other ways to try to address the issue such as Conditional Use Permits or changing the zoning to allow or address those uses being considered or requested.

Mayor Cushing recognized an informal call for the question by Councilmember Stark. There was no objection.

VOTE: YES: BECK, FENSKE, YOURKOWSKI.

NO: STARK, KRANICH, LADD.

MAYOR: TIE VOTE: YES.

Motion carried.

E. Ordinance 03-22(S), Of the City Council of Homer, Alaska Accepting and Appropriating a Grant of $108,305.00 from the Alaska Department of Transportation and Public Facilities Highway Safety Project for Traffic Safety Saturation Patrols and In Car Video Systems and Authorizing the City Manager to Execute the Appropriate Documents. HPD. City Manager.(First Reading 04/14/03, Public Hearing and Second Reading 04/28/03. )

There was no public testimony.

STAR/KRANICH - MOVED TO ADOPT ORDINANCE 03-22(S) BY READING OF TITLE FOR SECOND AND FINAL READING.

Councilmember Stark encouraged everyone to drive cautiously.

VOTE: YES: NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

ORDINANCE(S)

A. Ordinance 03-15, Of the City Council of the City of Homer, Alaska, Amending the Homer City Zoning Map to Rezone Portions of the Marine Industrial District (MI) to Marine Commercial District (MC). Planning. (Introduction and First Reading postponed on 02/24/03 to 03/24/03, Public Hearing 04/14/03, Second Reading 04/28/03.)

Mayor Cushing asked the Council for recusal since he represents two clients with adjacent lots, adding that he would comment regarding the City lots, if needed, after the vote. He turned the gavel over to Mayor Pro Tempore Yourkowski at 11:13 p.m. and left the Council table.

City Clerk Calhoun asked Mayor Pro Tempore Yourkowski to rule on whether or not she has a conflict of interest due to her husband's working relationship with Mr. Steiner.

Mayor Pro Tempore Yourkowski, with concurrence of each Councilmember individually, ruled that City Clerk Calhoun did not have a conflict of interest.

STARK/KRANICH - MOVED TO ADOPT ORDINANCE 03-15 BY READING OF TITLE.

Council discussed pros and cons, some of Council's discussion points are as follows:

This rezone is in the best interest of the City.

In keeping with the Comprehensive Plan, whenever possible lessened the detrimental effects on Spit properties.

Support for the City purchase of the lots and zoning these lots Open Space Recreational, no revenue or funding source was identified.

Commercial use is less impact and better zoning than industrial use and in better keeping with the Comprehensive Plan.

The zoning of the greater area should be reviewed.

It may be construed that the City is spot zoning.

Preference for all of the west side oft he Spit to be Open Space Recreational.

Reiteration that the Planning Commission had been asked to review the greater area and ;that the Council does want them to do that.

Concerns regarding the allowable use of hotels and motels in the Marine Commercial District. (Clerk note: Conditional Use only HCC 21.52.030(i).)

Differences and similarities in the Marine Commercial and Marine Industrial areas.

VOTE: YES: YOURKOWSKI, STARK, FENSKE.

NO: LADD, KRANICH, BECK.

TIE VOTE. Motion fails.

Mayor had recused himself and the tie could not be broken.

Mayor Cushing returned to the Council table and received the gavel at 11:27 p.m.

B. Ordinance 03-18, Of the Homer City Council Adding a New Chapter to the Homer City Code, 12.12, Flood Damage Prevention. Planning Commission. Manager. First Reading 03/24/03, Public Hearing 04/14/03, Second Reading 04/28/03.)

B.1. Ordinance 03-18(S), Includes Changes recommended by FEMA, that were in an attached letter for the Public Hearing..

FENSKE/BECK - MOVED TO ADOPT ORDINANCE 03-18 BY READING OF TITLE FOR SECOND AND FINAL READING.

There was no discussion.

FENSKE/BECK - MOVED TO AMEND TO SUBSTITUTE ORDINANCE 03-18(S).

Council commented the following:

It was noted that Jon Faulkner, Land's End Acquisition Corporation, had not commented regarding this Ordinance, this time around. It was expressed that apparently this must be a good change for those business that need to acquire this time of insurance.

This ordinance has been a long time coming, it is incumbent upon the Council to adopt this and increase the capability of Homer's citizens to have flood insurance.

There was concern expressed regarding some of the proposed City projects on the Spit such as Restrooms and what will this do to the cost of the project.

Mayor Cushing, with confirmation of the Public Works Director Meyer, noted that anything inside the Homer Spit Road, if above an elevation of twenty eight feet, which is almost all of the properties from the Fishin' Hole out, is out of the zone requiring special construction consideration.

Mayor Cushing recognized the informal call for the question by Councilmember Stark and there was no objections.

VOTE:(primary amendment 1.) YES: NON OBJECTION UNANIMOUS CONSENT.

Motion carried.

There was no further discussion.

VOTE: (main amended motion). YES: NON OBJECTION . UNANIMOUS CONSENT.

Motion carried.

C. Consent Agenda Item B. Ordinance 03-23, Amending Homer City Code Chapter 21.30 to Make Provisions for Enforcement of Zoning Code Violations. Planning Commission. Recommend Introduction, Public Hearing for May 12 and Second Reading for May 27, 2003.

LADD/YOURKOWSKI - MOVED FOR THE ADOPTION OF ORDINANCE 03-23 BY READING OF TITLE FOR FIRST READING.

There was no discussion.

LADD/KRANICH - MOVED TO AMEND WHERE OUR ATTORNEY IN HIS LETTER ON PAGES 101 THROUGH 109 HAS MADE RECOMMENDATIONS FOR SOME OF THE VERBIAGE TO CHANGE, A FEW SPOTS, AND THAT THERE BE INCORPORATED INTO A SUBSTITUTE ORDINANCE WHICH WOULD BE BROUGHT FORWARD AT THE MAY 12TH PUBLIC HEARING.

There was no discussion.

VOTE:(primary amendment 1.) YES: NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

FENSKE/KRANICH - MOVED TO POSTPONE ACTION ON THIS UNTIL THE CORRECTIONS ARE MADE AND GIVE US AN OPPORTUNITY TO STUDY THIS A LITTLE BIT MORE.

Postponement was discussed. It was noted that this is a complex piece of work requiring more study.

Some verbiage questions arose under this motion:

Page 69, any permit issued in violation of this section is void. Why would a permit be issued that was in violation?

Several places refer to the Constitution of the United States and then says or of the State. Should this be State of Alaska or is just "state" specific enough.

Page 71 administrative official "may" should be "shall".

Page 72 mention of interest. Should it say how the interest is compounded.

Planning Commission Chair Smith advised that the Commission postponed action after Mr. Griswold's testimony and that they did hear from the City Attorney. He confirmed that the Commission did review the list of responses from the City Attorney. The Commission made the changes they felt were appropriate and did in some cases made detailed reasons. What the Commission forwarded to the Council reflected the Commission's considerations.

Council discussed the Attorney Letter with recommended changes..

Council suggested two separate public hearings and second reading on June 9, 2003.

Mayor Cushing recognized the informal call for the question by Councilmember Yourkowski.

VOTE:(postponement) YES: KRANICH, BEC, FENSKE.

NO: YOURKOWSKI, STARK, LADD.

MAYOR: TIE VOTE: NO.

Motion failed.

LADD/KRANICH - MOVED THAT WE CHANGE THE SCHEDULE SO THAT WE HAVE FINAL ACTION ON THE FIRST MEETING IN JUNE AND TWO HEARINGS PRIOR TO THAT. (June 9 for second reading and additional public hearing on May 27)

There was no discussion.

VOTE:(primary amendment 2.) YES: NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

There was no discussion.

VOTE:(main amended motion) YES: NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

FENSKE/YOURKOWSKI - MOVED TO SUSPEND THE RULES FOR THE TIME LIMIT OF TWELVE O'CLOCK TO FINISH BUSINESS. (Time of Motion: 11:55 p.m..)

There was no discussion.

VOTE: (suspension of rule) YES: NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

Mayor Cushing called for a recess at Break at 11:56 p.m., reconvening the meeting at 12:02 a.m.

D. Consent Agenda Item D. Ordinance 03-25, Amending the Homer Zoning Code to Limit the Size and Dimensions of Buildings Used Primarily For Retail or Wholesale Business. City Council. Planning Commission. Recommend Introduction, Public Hearing for May 12, 2003, Second Public Hearing for May 27, 2003 and Second Reading for May 27, 2003.

Memorandum 03-60, from Acting City Planner as backup.

BECK/FENSKE - MOVED FOR THE ADOPTION OF ORDINANCE 03-25 BY READING OF TITLE.

Council comments included:

The Planning Commission has truly listened to the community and that the Council should be supportive.

The size limitation went from 40,000 square feet to 20,000 square feet in the Central Business District (CBD).

There was a suggestion that Port/Harbor Commission review this Ordinance and perhaps even hold a hearing.

More input is needed from the public.

It was recognized that the Planning Commission spent a lot of time on this Ordinance.

A Citywide survey was conducted wherein, 56 or 57%% of those responding (637 or so) said that they would like to see large retail structures, such as Fred Meyer, or reasonably sized store around 40,000 square feet, in Homer. This cannot be ignored.

This is a good example of the intensity of the minority versus the apathy of the majority.

Merchants are concerned about their livelihood.

There is a need for a cap.

The overall rationale and purpose behind this Ordinance parallel's the Homer Comprehensive Plan. Socially, culturally, economially and environmentally.

Need to protect the CBD.

Need to be pro development and responsible.

Maintaining the small town character of Homer.

Mayor Cushing noted that Planning Commission is gong to continue to work on this Ordinance.

Large Store Impact Task Force work was applauded.

The development regulations will address many of the concerns. Lighting, paving, parking, landscaping, public open space.

Size is one issue and maybe should not be considered without the regulations..

Concern with grand fathering development in at different levels of compliance, which is detrimental to controlling and affecting the growth of the neighborhood. Desire for everyone to have the same criteria at the same time.

It was noted that the temporary cap is in place and therefore the Council, in good faith, needs to move forward. Also noted was that there is a conditional use in place for 8,000 square feet.

Planning Commission Chair Smith advised that the conditions have not been received by the Planning Department. He noted that there are a lot of things involved and that it is a pretty substantial job to integrate this into the Code. He voiced his opinion that this would take some time and that six months might be optimistic. He advised that the Planning Commission's intent is to provide a substitute Ordinance to the Council on this issue, adding that the Commission has two meetings before the Council's 27th meeting and that they may not have the report from the Washington group by then. He suggested the Council delay this Ordinance.

Mayor Cushing suggested that in the interim of not having a City Planner some of this work may be contracted out.

City Manager Wrede interjected that the Chamber of Commerce has suggested delaying this to the May 27th meeting.

FENSKE/KRANICH - MOVED TO POSTPONE ACTION (FIRST READING) UNTIL MAY 27.

Postponement, substitute proposed Ordinances, and additional public hearing were discussed.

VOTE: (postponement) YES: KRANICH, BECK, FENSKE, STARK.

NO: LADD, YOURKOWSKI.

Morton carried.

Mayor Cushing called for a recess at 12:39 a.m. reconvening the meeting at 12:43 a.m.

BECK/LADD - MOVED FOR RECONSIDERATION ON THE DECISION THAT WE JUST MADE ON OUR LAST VOTE ON ORDINANCE 03-25, THE POSTPONEMENT.

There was a brief discussion, with the note that there are several issues here and that the Council has plenty of information to move forward.

Mayor Cushing recognized an informal call for the question by Councilmember Stark.

There was no objection.

VOTE:(reconsideration) YES: BECK, LADD, YOURKOWSKI.

NO: STARK, KRANICH, FENSKE.

MAYOR: TIE VOTE: YES.

Motion carried.

MOTION TO POSTPONE IS BACK ON THE FLOOR.

There was a brief discussion.

Mayor Cushing recognized an informal call for the Question by Councilmember Stark.

REVOTE: (postponement) YES: KRANICH, FENSKE.

NO: YOURKOWSKI, STARK, BECK, LADD.

Motion failed.

Mayor Cushing passed the gavel and stated that he wants to ensure that there is a seven person Council at second reading.

STARK/LADD - MOVED TO HOLD A SECOND READING ON JUNE 9TH OR UNTIL THE FIRST MEETING THERE IS A FULL COUNCIL AND THAT THERE WILL BE A SECOND PUBLIC HEARING (MAY 27).

VOTE: (primary amendment 1.) YES: UNANIMOUS CONSENT. NON OBJECTION.

Motion carried.

There was no further discussion.

VOTE:(amended main motion) YES: BECK, FENSKE, LADD, YOURKOWSKI, STARK.

NO: KRANICH.

Motion carried.

BECK/KRANICH - MOVED TO RECESS TO TUESDAY, APRIL 29TH AT 4 P.M.

VOTE:(recess) YES: NON OBJECTION, UNANIMOUS CONSENT.

Motion carried.

Council formally recessed this meeting at 1:13 a.m. to Tuesday, April 29th at 4 p.m.

Mayor Cushing reconvened the regular meeting at 4:00 p.m. Tuesday, April 29, 2003 in the Homer City Hall Council Chambers

PRESENT: COUNCILMEMBERS: BECK, FENSKE, KRANICH, LADD, STARK, YOURKOWSKI.

STAFF: CITY MANAGER WREDE

CITY CLERK CALHOUN

FINANCE DIRECTOR BAUGH

PUBLIC WORKS DIRECTOR MEYER

CITY MANAGER'S REPORT

A. City Manager's Report (Updates and Follow up, Petro Marine Correspondence, Police Department Memo/Bar Closing Hours, Public Works Memo/ADOT East Road Reconstruction Project, Homer Community Schools/Correspondence, Governor Fisheries Revitalization Strategy.

1. Filing of Petitions for LIDs.

2. Letter from SOS (Supporting our Shelter)

3. New Business Item C. Memorandum 03-63, from City Manager, Re: CIRI Land/Tree Cutting.

Placed under City Manager's Report during Agenda Approval.

B. Bid Report (RFP: Professional Planning and Engineering Services, Water and Sewer Master Plan. Due by 4:30 p.m., Thursday, May 1, 2003. and RFP: Bridge Creek Watershed Imagery and GIS Acquisition. Due by 4:30 p.m., Thursday, May 8, 2003.)

Filing of Petitions was placed, for discussion purposes only, just after Assessment Methodology as Item F. under New Business.

City Manager Wrede commended Administrative Assistants Rachel Livingston and Anne Marie Holen for their work on the Scenic Byways Program and for securing a grant of $150,000.00 designated for the Sterling Highway as a Scenic Byway. Anne Marie Holen will be attending a training workshop in New Mexico regarding the Scenic Byways Program. The costs of attending the conference will be approximately $200 to the City.

Mayor Cushing elaborated on the history of the Sterling Highway as a Scenic Byway and his, the Council's and former Manager Drathman's involvement. He attended a Scenic Byway session conducted on one of the Ferry's in conjunction with the Marine Highway being nominated as a Scenic Byway. During this session the emphasis was on "Educate not Regulate".

Councilmember Yourkowski voiced his opinion that borough wide zoning would be beneficial to the Scenic Byway Program.

Mayor Cushing interjected that all the Coastal Zone Management Plans are to be rewritten, however, he pointed out, that this is not an aesthetic thing.

City Manager Wrede apprized the Council of the schedule and basic process for hiring the New City Planner, that a part time person was hired to help out in the Planning Department and suggested that some consulting work may be necessary to get some of the things Council has asked to be done by the Planning Department. City Manager Wrede offered to assist by taking on the Parking Plan, Steep Slope issue Overlay District for Study Area 1 and some other matters, noting that it will take him some time.

Council clearly stated that they want the City Manager to be the City Manager and to take care of

the community as City Manager. They thanked him for his offer to take on the extra duties, adding that they do not want him to get burned out. Council agreed that since there is some money available in salaries that some consulting services were feasible.

City Manager Wrede reported that several consultants have contacted him and that he will put together an RFP.

Priorities were discussed. There are several lists of priorities.

Mayor Cushing voiced his desire to have the lists culminated with percentages of completion noted.

Priorities mentioned in general were:

Water and Sewer Master Plan - Proposals are due May 1st.

Flood Damage Prevention administration

Parking Plan

Steep Slope Standards

Zoning Code Enforcement

Large Store Standards

City Manager Wrede voiced his opinion that an additional full time person is needed in the Planning Department. Planning Staff and the Planning Commission rely heavily on the City Attorney, which has caused the legal bills to soar. Mr. Wrede voiced his opinion that adding an additional staff person and hiring a competent City Planner will reduce the legal bills significantly.

Councilmember Beck asked that the Council be copied with the legal bills for the next meeting. She also asked for the Manager to provide a copy of the USCG lease plans.

Planning Department space issues were mentioned.

There was clarification that the Spit Clean up is only on the City's leased lots 9, 10 and 11.

City Manager Wrede advised the Council of a discrepancy in the legal description regarding the UA property adjacent to Bridge Creek Watershed wherein the Council has authorized purchase. The discrepancy is a 20 acre impact and is being addressed.

City Manager Wrede asked for feed back regarding the Animal Shelter site. Mayor and Council gave him the direction to "kick over some more stones" and proceed with moving forward with the DOT property.

Mayor Cushing voiced concern that the Council not inadvertently diminish the work of the City and the volunteers regarding the new Animal Shelter. This is a wonderful service that is provided by the tax payers, the City and the volunteers.

COMMITTEE REPORT

Councilmember Beck reported that the Town Square Task force has essentially made a decision to keep plugging along until the grant presentation is made to Planning Commission and the report from the Washington State Students has been received on May 22nd. Council will be asked via Resolution in June to reformulate the task of the Task Force to focus on the undeveloped land between Heath Street, Main Street, Pioneer Avenue and the Sterling Highway.

City Manager Wrede advised the Council that while he and Councilmember Stark were in June they submitted, as requested, a short list of projects to Senator Stevens and Representative Seaton with the Water and Sewer Master Plan in the amount of $100,000.00 as the number one priority for any monies that may be available toward the end of session. This would be better than a 2% loan or using the sewer funds. Other projects submitted were restrooms and public works storage shed.

PENDING BUSINESS

NEW BUSINESS

A. 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 public entity. (Land and Property Negotiations.)

Removed from agenda, via Consent Agenda.

B. Memorandum 03-57, from City Manager, Re: Traffic Lights/Comprehensive Traffic Study.

Recommendation: We recommend that the Council adopt a motion stating its preference regarding the placement of a traffic signal at the corner of Lake and the Sterling Highway this summer.

STARK/KRANICH - MOVE WE GO AHEAD AND ASK DOT TO DO IT.

There some discussion about needing the traffic light at the intersection of Lake Street and the Sterling Highway. This was also commented on in the City Wide Survey.

LADD/FENSKE - MOVED TO AMEND TO POSTPONE THE MOTION ON THE FLOOR TO REQUEST THAT THIS MEMORANDUM BE ADDRESSED FOLLOWING A MEETING WITH REX. (REX YOUNG, DOT REGIONAL PLANNER)

VOTE:(postponement) YES: NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

C. Memorandum 03-63, from City Manager, Re: CIRI Land/Tree Cutting.

Recommendation: Continue to work with CIRI on finding a less onerous way to solve this issue that is beneficial to all. Grand fathering CIRI in the traditional sense may have unanticipated and far reaching implications. It may also be unenforceable. CIRI is very interested in participating in the town square process and this may open new avenues for meaningful discussion.

Placed under City Manager's Report under Agenda Approval.

This was placed under City Manager report.

D. Memorandum 03-64, from City Clerk, Re: Review of Local Bidder's Preference as noted in Ordinance 01-13(S)(A).

KRANICH/STARK - MADE A MOTION TO APPROVE THE RECOMMENDATIONS OF MEMORANDUM 03-64.

There was discussion in support of continuing this preference, adding that if this had of been in place with the Pioneer Dock project was bid a local contractor probably would have secured the contract.

VOTE: YES: STARK, KRANICH, BECK, FENSKE, LADD, YOURKOWSKI.

Motion carried.

Mayor Cushing called for a recess at 5:15 p.m. reconvening the meeting at 5:22 p.m.

Mayor Cushing called for an agenda change since Councilmember Fenske has to leave at 5:45 to take up Resolution 03-63, the Resolution he sponsored.

There was no objection.

Resolution Item B. Resolution 03-63, Of the City Council of Homer, Alaska in Support of Creating a Partnership Between the State Government and Local Municipalities to Identify Funding and Services Critical to the Welfare the People of the State of Alaska. Fenske.

FENSKE/BECK - MOVED FOR THE ADOPTION OR RESOLUTION 03-63 BY READING OF TITLE.

This was discussed.

Councilmember Stark requested that a clause be added to Resolutions to note where copies Resolutions, especially of this nature are to be sent and that AML be also copied.

City Manager Wrede responded to Council inquiry, confirming that the Resolutions are copied and sent out and that the Clerk's Office does a good job with that.

There was a consensus of the Council to implement this procedure.

VOTE: YES: NON OBJECTION UNANIMOUS CONSENT.

Motion carried.

E. Memorandum 03-65, through City Manager from Public Works, Re: Standards for the Modified Square Foot Assessment Methodology for Water and/or Sewer Improvement Districts.

FENSKE/STARK - MOVED FOR THE APPROVAL OF THE RECOMMENDATIONS OF MEMORANDUM 03-65.

Councilmember Fenske left at 5:45 p.m.

Council voiced a preference for the current method of equal shares per lots is to continued. They objected to the proposed method. There was some discussion that the square footage of the front one hundred and fifty feet of a lot might be acceptable.

VOTE: NO: LADD, YOURKOWSKI, STARK, KRANICH, BECK.

(Councilmember Fenske was absent for the time of voting.)

Motion carried

F. City Manager's Report Item A. 1. Filing of Petitions for LIDs.

The Council had concurred with the Mayor regarding placing this for discussion at this point in the agenda.

The Clerk Calhoun will submit LID initiating process to the Council for action. Council would prefer that 50% of the property owners in an area ask for a petition and that there be a time limit regarding repetitioning.

RESOLUTIONS

A. Resolution 03-59, Of the City Council of Homer, Alaska Setting the Assessment Methodology for the Ocean Drive Loop Water and Sewer Local Improvement District. Requested by Mayor and Council. Requested to be on this agenda by Mayor Cushing.

Memorandum 03-59, from Public Works as backup.

Mayor concern regarding conflict of interest. May ask the Council to revote depending on the action on Memorandum 03-65. He apprized the Council of his conversation with the City Attorney, wherein the Attorney does not see that the Mayor and a conflict. Mayor Cushing expressed his belief that he does have a conflict and wants the Council to take up the motion without him.

Mayor Cushing turned the gavel over to Mayor Pro Tem Yourkowksi and left the table. Time not noted due to computer error.

STARK/BECK - MOVED FOR ADOPT RESOLUTION 03-59 AND TO INSERT EQUAL SHARES INTO THE BLANKS.

There was quite a bit of discussion, which went back somewhat to Memorandum 03-65.

Mayor Pro Tem Yourkowski acknowledged Councilmember Beck's informal call for the question.

VOTE: YES: NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

Mayor Cushing received the gavel as he returned to the table

Due to computer error the time the Mayor returned to the table is uncertain.

B. Resolution 03-63, Of the City Council of Homer, Alaska in Support of Creating a Partnership Between the State Government and Local Municipalities to Identify Funding and Services Critical to the Welfare the People of the State of Alaska. Fenske.

Rules were suspended just after action on Memorandum 03-63 to place this matter next on the agenda. Resolution 03-63 was adopted under New Business.

Councilmember Beck left at 6 pm.

COMMENTS OF THE AUDIENCE

Angie Newby thanked the Council for considering the Ocean Drive Loop Sewer improvement District and voiced support for the per lot assessment methodology

Al Waddell addressed the Council regarding Ordinance 03-25, limiting size and dimension of buildings for wholesale and retail business. He told the Council that he is not trying to be a bad apple and that for the sake of property owners and himself he voiced a lot of concerns with the concept and way that this Ordinance is written. He advised that he owns six acres in one chunk and two and a half acres in another chunk He shared the way that he reads this Ordinance, that on his six acres that he can accumulate up to twenty thousand square feet on his total property. On his two and a half acres wherein he has cabins that are about a thousand or two thousand a piece square footage. His store is roughly seventeen thousand square feet. He anticipates building a steak house, and has since moving to that location, that would be a convention center at about sixteen thousand square feet with an attached car museum. The Ordinance says that he will not be able to do anything because he will exceed the twenty thousand square foot, because he has too much land. The Ordinance says that any property owner in the City of Homer cannot exceed twenty thousand square feet. In other words, Mr. Waddell said that if he had fifteen lots in town and had ten thousand square feet per lot he'd be over the limit right now and could not develop any the rest of the lots. He emphasized that he is being forced to subdivide his existing property and sell it to someone else and have them develop it. He encouraged the Council to read this very carefully. He told the Council that they would definitely be hearing a lot more from him on this situation. He acknowledged and voiced realization that this was done in kind of a hasty situation, specifically because of Fred Meyer coming to town. He wondered if Fred Meyer really wants to come to this town if someone can restrict them to a certain size. He informed the Council of a similar situation he was involved in Anchorage with selling wholesale pet supplies and that he refused to sell to people in residential areas regardless of having a business license and that he was turned into the Federal Trade Commission for restricting trade and was told that he had to sell to these people. Mr. Waddell told the Council that he is very upset with this Ordinance and suggested that the Council look long and hard at this Ordinance He told the Council that his family does not want to subdivide. He voiced his opinion that if some day he wants to have a mall on his property he should be able to do so and not be restricted to a twenty thousand square footage limitation. He apprized the Council of when Scott Ulmer was going to be on his property at one time and would have been a thirty seven thousand square foot building over adjacent to the Post Office. He voiced his hope that he can develop his property for himself and his family. He stated that he hates court and briefly commented on the previous HEA court situation. He told the Council that he does not want to see them make these kinds of mistakes. He relayed that when he was on the Council he had to remind himself of the definition of the word government; Does something for the people, they cannot do for themselves. He asked the Council to please, clearly remind themselves of this.

Mayor Cushing suggested that Al Waddel get with the City Manager for clarification regarding Ordinance 03-25, before the next meeting.

Larry Slone noted that had the Council not taken a break late last night it would be about 3:20 a.m. He pointed out that, not knowing if this was a new record, very few people are willing to take the time and commitment to this community. He commended the Council for the time they put in, acknowledging that it can be very difficult at times, adding his appreciation. He commended Mr. Frank Griswold for the time and effort that he has put in and that he is responsible for some of the favorable out come of matters the Council has been considering. He voiced support for the Big Brother and Big Sister program, interjecting that his sister is a teacher who has advised him one of the biggest problems for children is the lack of supervision and guidance. The schools are having to, by default, absorb some of the roles and that they are not particularly effective. He commented about the big box store issues, CIRI's right to clear cut its trees, City values and private property concepts. He encouraged the Council to bear in mind private property ownership issues, green spaces and public shared areas and landscaping when considering the development standards for the large stores. With regard to the library placement, he pointed out that the people promoting it and advocating it are very intelligent and educated people with a high regard for the quality improvements that libraries can do and voiced appreciation for their enthusiasm and advocacy. Using the eight lots on Hazel Avenue is vastly reaching, this is prime potential commercial lots valued at over a half a million dollars. He voiced his opinion that those eight lots of the potential of being turned into a nice segment of the business community with arts, crafts and tourism and still interface with the Town Square and Town Center concept. He mentioned the taxes that will be lost if these lots are turned over to the Library and that four of the lots will have to be used to get enough parking space to fit their needs an atrocious use of space. The far better option is the university land for the library site. He commented about placing the City Hall on the university parcel in conjunction with the Library and encouraged the Council to consider this possibility and that parking would be adequate in the Pioneer area and would be a good place for a trail to connect with Poopdeck and connect to the City owned property. He suggested that ten percent conceptual designs be drawn for the university land and Hazel Avenue properties to assist Council in making their decision.

Al Waddel, after being granted permission to speak, commented about the safety issue at the intersection of Lake Street and Sterling Highway. He voiced strong support of a traffic light at that intersection.

COMMENTS OF THE CITY ATTORNEY

City Attorney Tans was not present.

COMMENTS OF THE CITY CLERK

City Clerk Calhoun reported that the Kachemak City Mayor and City Council will be able to meet with Homer's Mayor and Council at 4 p.m. on May 12, 2003.

COMMENTS OF THE CITY MANAGER

City Manager Wrede had no comment .

COMMENTS OF THE MAYOR

Mayor Cushing commented on 8 hours of meeting time for this meeting and that nearly four hours of that was public comments.

COMMENTS OF THE CITY COUNCIL

Councilmember Stark asked the City Manager to add to his list of things a review of the waiver of Sewer Assessment protests for those with spaghetti lines and that if we are not getting a piece of paper with writing and a signature on it that we start doing this right a way. Number two, if the Manager could review the waiver of Sewer Assessment protest if there is a public health emergency. Mr. Stark voiced his thought that DEC is involved in that; however, expressed his opinion that the City needs to know what its abilities are when we have a situation that is a health emergency and people are protesting the installation of a Sewer LID.

Mayor Cushing briefly commented that he understands Councilmember Stark is referring to a single spaghetti line or lines and that this is different then neighbors getting together to form a mini improvement district. These mini improvement districts are by all intents and purposes called a spaghetti line, but is a DEC approved extension that is maintained by those local people. He said that he would hate to see "Ray" have to tear his out when he has it all approved by DEC, noting that this serves about four or five houses and the City does not maintain it. He asked that this be a part of the review as well. He reported that he tries to encourage folks to do non City funded kind of STEP systems, where 20 lots get together and do a STEP technology etcetera.

Councilmember Ladd commented on the joint meeting with Kachemak City on May 12 at 4 p.m. He reminded the Council to get to the City Manager some items for this agenda and that these items be copied ahead of time to Kachemak City Mayor and Council so that a lot of time is not spent deciding on an agenda or trying to decide what to discuss. He noted that there are some very important matters that need to be discussed. The Kachemak Sewer agreement that was initiated in 1988 comes up in 2006. Sewer and water are big issues between Kachemak City and Homer. There are a number of items. He inquired if one hour is going to be enough and voiced his opinion that it maybe should be an hour and a half or the entire Committee of the Whole meeting. He announced that on May 6 the Kachemak Bay Branch has their graduation at the Mariner Theatre at 7 p.m.

Councilmember Stark interjected that General Hamilton is supposed to be in attendance at the graduation.

Councilmember Kranich advised that he would dearly love to be here for the meeting with Kachemak City officials, but will be out of town for that meeting and that he does not expect this meeting to be rescheduled, since you cannot work around everyone. He will try to get his list of issues in.

ADJOURNMENT

There being no further business to come before the Council the meeting was adjourned at 6:34 p.m The next Regular Meeting is scheduled for Monday, May 12, 2003 at 7:30 p.m. The Committee of the Whole is scheduled for May 12, 2003 at 4 p.m. Both meetings are scheduled to be held in the Homer City Hall Council Chambers located at 491 E. Pioneer Avenue, Homer, Alaska. The at least the first hour of the Committee of the Whole will be a joint session with Kachemak City.

_____________________________________

MARY L. CALHOUN, CMC, CITY CLERK

Approved: _______________

1. Griswold letter dated April 2, 2003 second page, second paragraph, line 4: "I believe John Fenske and Ray Steiner are both involved in construction business in Homer. If Mr. Fenske and Mr. Steiner have any professional or private relationship that is a source of income from which Mr. Fenske has receive or expects to receive a financial benefit of at least $300, then Mr. Fenske too has a conflict of interest and should not participate in the discussion or vote regarding Ordinance 03-15. Mr. Fenske should be given an opportunity to explain the nature of his relationship, if any, with the parties involved and the source of his information regarding future construction plans for Lot 2.