Session 04-18, a Regular Meeting of the Homer City Council was called to order at 7:02 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.

Committee of the Whole was held from 4:04 to 5:29 p.m. regarding the Regular Agenda Items.

PRESENT: COUNCILMEMBERS: BECK, FENSKE, LADD, NOVAK, STARK,

YOURKOWSKI. (Telephonically.)

STAFF: CITY MANAGER WREDE

CITY CLERK CALHOUN

FINANCE DIRECTOR BAUGH

LIBRARY DIRECTOR HILL

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

Councilmember Yourkowski, pursuant to HCC 1.14.085 (a), notified the City Clerk on August 3, 2004 of his intent to appear at the August 9, 2004 Regular Meeting by telephonic means of communication. Pursuant to HCC 1,14,085(b), The City Clerk notified the City Council on August 3, 2004 of Councilmember Yourkowski's intention to appear by teleconference.

Pursuant to Homer City Code section 1.14.085 (c). The Council shall determine whether or not the Councilmember(s) shall participate by teleconference. If the Council determines that the teleconferencing is not required for the conduct of business the Councilmember(s) shall be notified in the most expedient manner possible.

The Mayor and the Council voiced non objection to Councilmember Yourkowski participating telephonically.

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 the consensus of the City Council with the following changes:

Agenda corrections - Fiscal Note on Ordinance 04-32(A) should read $470,000.00. - no action required, Committee Reports should read July, Memorandum under New Business is numbered 04-117.

Public Comments - written comments received after the packet was printed.

Consent Agenda - Substitute Memorandum 04-115(S), from Mayor, additional appointments, Substitute Ordinance 04-40(S), changed account numbers.

Ordinances - From Finance new interest rate for Ordinance 04-30(A). - no action required, Summary of the Planning Commission's recommendations regarding Ordinances 04-33 and 04-34 with memoranda, from their Regular Meeting of August 4, 2004. - no action required.

New Business - Memorandum 04-117 and a draft Ordinance.

Mayor Cushing added a Visitor - Hannah Harrison, National Envirathon Team Report.

PUBLIC COMMENTS UPON MATTERS ALREADY ON THE AGENDA

Public comments on any matter on the agenda except Public Hearing items Ordinance 04-32(A),Approving and Submitting a One Half of One Percent (0.5%) Increase in the City Sales Tax to the Voters for Voter Approval at the October 5, 2004 Municipal Election and Providing for a Maximum Property Tax Rate in 2005 of 4.50 Mills if the Sales Tax Increase is Approved by the Voters andOrdinance 04-37, Authorizing Use of $9,750.00 from the Homer Accelerated Roads Program (HARP) Funds and $9,750.00 from the Homer Accelerated Water and Sewer Program (HAWSP) Funds for Slope Stabilization of the Ocean Bluff on Two City Lots along Ocean Drive Loop.

Frank Griswold said that he wanted to read a statement into the record and pointed out that a supporting document referenced in his letter on page 159 of the packet appears on pages 287 to 291. As a side note, he relayed that two Planning Commission meetings ago he told, what he thought was, an amusing anecdote and the punch line got botched in the minutes and suggested that if anyone wanted to hear it, that they get the tapes. He continued with his statement, wherein he referenced Councilmember Fenske's comments from the July 26, 2005 Council meeting; wherein, the Councilmember addressed Ray Kranich's comments about speeding up the process with regard to Ordinances 04-33 and 04-34, about how these are on the fasted track, that misinformation bothers him and that he has a great deal of faith in this Council. Mr. Griswold stated that he too is bothered by misinformation, which, in this case, is being deliberately disseminated in a desperate attempt to overthrow a legitimate zoning decision, namely Ordinance 04-11(A). He disagreed with a recital in Ordinance 04-33 that states there was a split vote on Ordinance 04-11(A), that the vote actually was 4/2, Councilmembers Ladd and Stark voting in the negative. He reiterated the words of Al Waddell, "Get over it. You lost!" He expressed surprise that, with the questionable whereas clauses, Ordinance 04-33 passed first reading, comparing this to the 36 supporting whereas clauses for Ordinance 04-11(A). He voiced his opinion that, although it is being sold as such, the June 15 ballot initiative is not justification for repealing the wholesale and retail business use size limits of Ordinance 04-11(A). He asserted that Ordinance 04-11(A) was enacted in accordance with the objectives and provisions of the Homer Comprehensive Plan and the Homer Zoning Code as the law requires, pointing out that there are no such requirements for passing a ballot initiative. He maintained that the ballot initiative was cleverly worded to have mass appeal and that some voted for the initiative, thinking that it would make the Code more restrictive. He declared that there is an attempt afoot to fool the public into believing the Council has an obligation to amend the City Code in order to follow the will of the people and threats of recalling those Councilmembers who refuse to acquiesce. Mr. Griswold stated that there is no such obligation, that the will of the people was not clear, but was incorporated into Ordinance 04-18, which automatically went into effect following the certification of the election. He told the Council that Ordinance 04-18 must be taken at face value, that it would be improper for Council to interpret the language of the ballot initiative to mean something other than what was presented to the voters. He suggested that the initiative sponsors may have been too clever for their own good and, dissatisfied with the results of their endeavor, that they are now attempting to capitalize on their ineptitude and spin straw into gold. He further suggested that they have joined forces with two Councilmembers who have declared potential conflicts of interest, that have been deemed as non conflicts of interest. He stated for the record that he believes Councilmember Ladd acted inappropriately when and where he collected signatures for the ballot initiative, that his actions cannot be excused by his wife's medical condition or by the fact that the list of signatures, he obtained, was destroyed. He noted that there were twelve legally authorized sponsors and Mr. Ladd was not one of them. He commented about his letter to the Mayor, that is in the lay down information, regarding Councilmember Stark's potential conflict of interest in that he owns a parcel, KPB # 179-100-26, located off Kachemak Drive in an area affected by Ordinance 04-33, that is a ten acre parcel and large enough to accommodate a 66,000 square foot footprint retail store. He voiced his guess that very few of properties within the areas rezoned by Ordinances 04-33 and 04-34 are large enough to accommodate such a structure. He suggested that if Mr. Stark's property value and/or resale options could increase as a result of the enactment of Ordinance 04-33, if he is not affected the same as a large class of citizens, then he may have a disqualifying conflict of interest. Mr. Griswold pointed out that Mr. Stark, to his credit, did attempt to more fully disclose the details of a potential conflict of interest. Mr. Griswold voiced his belief that sufficient information was not solicited or provided to facilitate a valid determination. He emphasized that Councilmembers must avoid impropriety and the appearance of impropriety. He asserted that in the case of Ordinance 04-33 this was not done. He expressed his opinion that the current zoning code size limit is okay as is, and that there is no conflicting language, no pressing need to amend the standards put in place three and one half months ago. He shared Councilmember Fenske's faith in the Council, that he has no doubt, armed with the truth, that the Council will vote down both Ordinance 04-33 and 04-34, or any other versions thereof. He thanked the Council for listening to his concerns.

Dr. Bill Marley, 37 year resident of Homer, spoke to and in favor of Ordinance 04-33, that 66,000 square foot store size is an acceptable compromise between no holds barred and the original smaller size put out by the Planning Commission. He voiced amazement at the number of meetings that Planning and Zoning had, 45 meetings, that he respects them and appreciates their work. He expressed his thought that the work that they did would have an effect even on a 66,000 square foot store and that it is appreciated and respected in terms of parking lots and how they would be, in terms of artistic design and things of that nature. He commented about the referendum ⁽¹⁾ that recently passed with 63% ⁽²⁾of the people in Homer. He congratulated Frank Griswold about being so well versed about the Ordinance. He emphasized the fact that, politically, people spoke as to their wishes and he encouraged the City Council to conduct their affairs in such a way as to pursue those interests as set forth by the people in the recent referendum. He thanked the Council for their time.

Lucinda M. (Cinda) Eckert, Homer resident and Secretary of the Hockey Association, commented on Memorandum 04-117, encouraging the Council to approve the Memorandum as it lends support to the 1999 Homer Comprehensive Plan Update, specifically relating to the inclusion of indoor and outdoor recreation facilities to the various City districts. She stated that as borough wide extra curricular budget cuts increase so does the need for the community to take the necessary steps to encourage the existence and the creation of sporting associations for the benefit of the community's youth. She stated that the Ordinance ⁽³⁾ would directly benefit the Hockey Association and provide for the long awaited facility. She informed the Council that she would provide an updated status report for them under the proper order of business. She pointed out that, more importantly, this would open the door for other recreational associations and their activities thereby enhancing the quality of life for Homer residents and especially the use of Homer. She noted that Homer residents and business would certainly benefit from the expanded districts to serve more indoor and outdoor recreational uses for all seasons by taxing sports enthusiasts year round thus generating more off season revenue. She concluded that the focus of this beautiful City has been tourism and recreation and now is the time to bring a cohesiveness to each district by adopting this Ordinance and to promote that on which the City so heavily relies.

Bruce Turkington said that he wanted to let Frank know that there are no crafty past Council people that drafted Ordinances, that this was, a point blank, trying to talk to people in the community. He advised that he has been this way all of his life, has served on a lot of Boards including the City Council and Planning Commission, in prior years. He asserted that the Election was the biggest, giant public hearing ever held in Homer, that it was not held during the normal election time, and that people got out to vote, because they read about the election and heard about the election. He reported that the voters talked to people on both sides of the issue, that the issue was well talked out in the media sources and that the media also carried the announcement and the idea that it was confusing. He emphasized that the initiative was filed before the final Ordinance amendments were done and that this should not have to be repeated, interjecting that the paper pointed this out as well as the outcome and what was the intention. Mr. Turkington stated that he sat in the Radio station surrounded by a number of the people that are in the Council Chambers, everyone got ample time at the radio station to tell their point, the public found out about this, and both sides did mailers to explain their sides of what this would be if it were called an advisory vote. He commented about this not seeming to be mandatory to the City Council. He emphasized that there was nothing out there to deceive anyone and that there was no trickery in writing the language, with which the City Attorney kind of helped participate to try to get language that would adapt to the Ordinance changes the way it is written. He stated that a lot of the Ordinances in the City Code are not real clean and that there is a lot of lingo in there and the Ordinance was written to try to clarify it and clean it up, nothing confusing and if the Council heard something different, as some Councilmembers and Planning Commissioner say they have, and that they don't believe people knew what they were doing. He voiced his hope that the Council would listen to this giant public hearing and if not, other different democratic ways will be used to try to make changes happen.

George Meeker said that he thinks Mr. Turkington had a good lead into what he is going to say, which is what he has said several times that he really does not understand why this hearing is being held. He suggested that the legal system obviously needs an overhaul if every case, like business size, has to go to court to decide if the people have rights to make their own decision and that it seems that the Council's time should not be taken up until a decision is returned, unless Council has found a way to get around this law. He told the Council that he is in favor of the voters' decision, that all the votes were counted on allowing businesses up to 66,000 square feet ⁽⁴⁾ for operations. He said that he still wonders how the City can restrict a business for inadequate parking space and this vote be illegal. He voiced his hope that the City will not keep out any business that the proposed mining operation might bring to Homer. He expressed his opinion that it seems obvious the legal advice apparently was negligent in not advising the City Council and this body, to not put this to an expensive vote in the first place, if they knew it was illegal. He emphasized that Homer is a great place to live and work, however, if it continues to put barriers on new businesses this will likely change. He suggested that Homer will continue to grow regardless of these restrictions , but if things don't change there will be little choice but to put all tax exempt property in Homer on the tax rolls. He issued a word of caveat that at some point businesses wanting to come to Homer will likely just build outside the City limits. He emphasized that it is difficult for any City to operate without an adequate and increasing tax base to support all of the services wanted and deserved. He wished the Council good luck and thanked them.

Stan Welles voiced support of Ordinance 04-33 and spoke to it from two sides:

The economic issue: The biggest part that has not be spoken about to date are the sleeping large expenses that the City is looking at in the relatively near future, the next few years. Council is aware of this as they consider the budget issues coming up. The public is not well aware of the enormous expenses and infra structure costs along with the increase of costs due to interest in fuel energy expenses that need to be factored in, in the next few years. There are growing budget needs.

Competition is a fact of life: To arbitrarily choose to push the competition outside of the City limits the businesses inside the City still lose, because the competition will come. Growth will come. It is all a matter of whether or not in our pasture or outside. He cautioned about forcing excellent choices of revenue outside the City's pasture, which causes the core community to, basically, rot. This is due to dumping all of the rest of the economic burden on the residents, increasing the rates to the residents, some will bale out and others will get discouraged.

Mr. Welles emphasized the importance of considering that there are huge economic expenses coming and that this is a wonderful opportunity. He voiced chagrin that the City is actually setting square footage limits, because businesses do economic investment decisions analysis, quite sophisticated, to determine the optimum square footage and other parameters that are part of business costs in determining what square footage is desired to heat, to cool, populate with inventory, employees and etcetera. He commented that it is extremely foolish to dictate to any business the size they must be under. He pointed out that it is important that a business be able to operate at optimum efficiency, which optimizes their salaries, number of employees, benefits they can pay and lowers the cost to the consuming community. He concluded that it would be extremely foolish to do anything less than 66,000. He thanked the Council.

Lane Chesley, City resident and Chair of the Planning Commission, commented that he was present during the Committee of the Whole, that he listened to Councilmembers Ladd and Stark take the Planning Commission to the proverbial woodshed over two statements in the Commission's Memorandum with regard to Ordinances 04-33 and 04-34. He relayed his initial shock at their responses, that as he sat and listened to them he began to understand that what was really going on was the result of a break down in communication. He then made the following comments:

When my wife tells me that my pants are looking a little snug, I wonder what is she really saying to me. Is she saying that I am getting fat or is she commenting on the quality of the clothes that I am wearing and their inability to hold a stable size of many washings. Well, a huge factor in my making the decision on the way to interpret the comment really depends on how our relationship was going up to that point. And, for the rest of the married guys in the room, I have some advice. Close your eyes, take a deep breath and choose your words wisely before answering your wife's question about how you like her new hair style.

He noted that, at times, comments have been expressed in these Chambers portraying the Planning Commission and the Council of not listening to the public by adopting the standards included in Ordinance 04-11(A) and that the Planning Commission and Council are making recommendations based on what they thought was good for the community irrespective of what community desired. He told the Council that the Commission had no ill intent in drafting the statements in the Memorandum and apologized that the message was not more clearly stated. He advised the Council that the Commission's intent was to emphasize and restate for the record that they reached a very different conclusion to the question of size standards, because they had to follow a very different deliberate administrative process, which is very different than the initiative process and thus helps to explain the difference in the results between the two. He emphasized that the Commission is committed to the public process and does not engage in belittling behavior toward members of the Council or the public as suggested by Councilmembers Ladd and Stark. He said that he does think their reaction is understandable in the broader context in the debate about this issue. He pointed out that the process or story is not necessarily over or ends here tonight, there is pending litigation to prevent the enactment of the initiative; however, the outcome of the legal process can vary greatly from a clear decision for or against or a mixed decision that addresses very specific issues without clarifying the primary issue. He informed the Council that they are told that other litigation may be coming, pending the results of Griswold versus Homer. He thanked the Council.

Ray Kranich, City resident, apologized that he kind of got behind the eight ball and did not bring the magazine article for the Council that he had intended to bring and read to the Council about three paragraphs. He reported that this is an article about Homer, about how the people that were in Homer would tell a new comer to move on and that they were not wanted here. He noted that if that feeling had prevailed when that article was written he'd have a very hard time, tonight, carrying on a conversation with himself, since that article was written June 1944. He offered to provide the magazine to the City Clerk to make copies for all of the Councilmembers. He addressed Ordinance 04-33, interjecting that Mr. Turkington took a little bit of his line. He stated that on June 15th the City had a public hearing, 984 people told the Council that they wanted larger retail store sizes in Homer than supported by both the Planning Commission and the Council. He told the Council that it is incumbent on the Council to hear and listen to these 984 people, pointing out that if even half of these paraded through here in any one night the Council would be until the next day listening to them. He commented that, after reading the Planning Commission minutes of August 4th and Memorandum from Planning staff, it is obvious that the Planning Commission still wishes to restrict the size of business in Homer, not building size. He stated that there is nothing said about all of the folks coming over the hill. He asserted that the emphasis has been to restrict business and that this feeling of restriction has been voiced by several of the Councilmembers. He stated that there has not been any slow down on any other development or increases, it has been to restrict business. He voiced his opinion that Ordinance 04-33 will only amend Homer City Code, which was implemented by Ordinance 04-11, a regular course of events for changes and updates to the Homer City Code, a normal thing. He advised that Homer is going to continue to grow so it is imperative that the Council should listen to the people, the 984 that spoke, and pass Ordinance 04-33.

Bruce Hess, resident and Planning Commissioner, stated that the Planning Commission in no means wants to restrict business coming into Homer. He voiced his opinion that part of the problem is the area of the Central Business District (CBD) and the lack of understanding that what they are trying to say is that the initiative and the voters don't have to take into account things like the Comprehensive Plan. He emphasized that the Commission does have to take the Comprehensive Plan into account and came up with a cap recommendation based on that Plan. He advised that the Commission feels that the CBD is not the appropriate place for business use above 35,000 square feet; however, he pointed out, that they do believe that there are areas in the community where larger retail is appropriate and that is what they did when they came up with the size cap recommendations. He stated that they have areas of the community that they feel these size of business can exist properly in Homer and they feel like they addressed that. He voiced his opinion that everyone feels like the restriction in the CBD applies to the whole town. He emphasized that this is not the case. He suggested that if it takes a little bit longer to get this all worked out right then the time should be taken, these are things that will affect this community from now on, so what's a little bit more time. He continued, if the numbers aren't perfect in the CBD, or GC1 out East End and they have to come and hear and go through more process to get that number exactly right they can do this. He asserted that there is no reason to do this right now. He said that he does not care if there has to be a whole other advisory vote that makes this thing 100% right then that is what needs to be done, because these are things that are going to affect this community from now on. He commented that there were obvious flaws in the initiative, so it was wrong this time, we'll get it right next time and get the proper feeling of the community. He stated that if there is a compromise that needs to be made they will make it. He encouraged the Council to not make decisions based on basically flawed information, which is what they have now and that this is all that he is going to say.

Larry Garvey stated that he has been in Homer 18 years and is one of the 984 that have come tonight. He said that he could lobby the Council to death, but will just state, as he did in the paper when caught at the Post Office, that he urges the Council to act expediently, to amend the Ordinance as it needs to get going on the building of a larger retail store, if that is what the public wants. He commented that it seems like the silent majority spoke that day. He told the Council that it seems like things are being slowed down. blocked in whatever way, and excuses for the vocal minority. He asked the Council to move on the Ordinance as quick as possible and not drag it out, as the previous speaker indicated. He voiced his opinion that the public opinion has been stated, he urged the Council to do what they have to do to get it done now.

Sue Post, long time resident of the area, and a business and property owner within the City, thanked the Council for their continued work on many issues here in Homer. She specifically spoke on Ordinance 04-33 and 04-34 and encouraged the Council to not pass either. She noted that many hours, much time and expertise went into Ordinance 04-11(A) and that she feels that it was well evaluated at that time. She emphasized that this is such a huge issue and will so drastically change Homer. She acknowledged Council's feeling of pressure due to the recent election, but hoped that the Council would keep to their original decisions and keep the size limit in the CBD to 35,000 square feet. She pointed out that there are, already, other areas in the City limits that are currently zoned 45,000. She stated that this issue goes so much deeper than just the argument for cheaper groceries or cheaper shoes, that there is a domino affect that will happen, and that she is sure we will start to crumble bit by bit. She shared her hope that Council, as they make their decision, will factor in the whole domino affect and realize that the local businesses supply so much revenue that the large corporations will not, such as: hiring of a local accountants, local computer technicians, local sign makers, local interior decorators, local delivery companies, local printers and local stores wherein supplies are purchased. She emphasized that each time the businesses buy locally they not only support the local economy, but also pay sales tax again and again and again, which comes back to Homer. She pointed out that large corporations do not use local services, they don't buy supplies locally and they probably don't even bank locally and bring in their own freight on their own trucks, use their own architects, interior decorators and sign makers and bring in their supplies from outside. Considering that they may supply groceries a little cheaper, she inquired if they are really strengthening our economy when they don't contribute themselves? She stated that this is not a permanent decision that is being made, it can be reevaluated when and if Homer is ready for more. She encouraged the Council to think of the whole picture as they make their decision and that it can be reevaluated. She thanked the Council for their time. In response to Councilmember Stark's question, she confirmed that she is not a City resident.

Sharon Whytal, City resident, relayed her confusion as to what the process actually is, that she is confused that there is a law suit pending and that this is still are going forward with considering different types of Ordinances to insert to change Ordinance 04-11. She commented that she does not think that she is the only one that is confused and voiced her hope that the Council will consider the Planning Commission's reevaluation of the large amount of information that they have been working on as well as the apparently simplified yes/no ballot issue that, to her, does not really seem like a simple yes/no and that she hopes the Council will consider the whole package rather than seeing it as simplistically as the media portrayed right before the election. She thanked the Council.

RECONSIDERATION

A. Memorandum 04-111, from City Clerk, Re: Councilmember Novak's Notice of Reconsideration of the amendments to Ordinance 04-30. If reconsideration is approved the amendments to Ordinance 04-30 are back on the floor under Ordinances.

Recommendation: Move for reconsideration of the secondary amendment and primary amendments to Ordinance 04-30 and the main motion on Ordinance 04-30, having voted in the affirmative on all the motions.

From Robert's Rules of Order, Newly Revised pages 317 and 318, copy of these pages follows Page 6 of the Council's packet.

If it is desired to reconsider the vote on a subsidiary or incidental motion (amendment) after the main motion has been finally disposed of (in this case, adopted for second and final reading), the vote on the main question must also be reconsidered. In this case the Motion to Reconsider should be made to cover the secondary amendment, the primary amendment and the Main motion as amended.

When a motion to Reconsider covers the votes on two or more connected motions, not all of these questions can be discussed in debate on the motion to reconsider, but only the one that will be voted on first if the motion to Reconsider is adopted. In this case the motion should be to Reconsider the secondary amendment, the primary amendment and the Main motion as amended, therefore, debate is open only on the secondary amendment.

If reconsideration passes, Ordinance 04-30, as amended is back on the floor under Ordinances and the first matter to be reconsidered is the secondary motion.

NOVAK/FENSKE - MOVED FOR RECONSIDERATION OF THE SECONDARY AND PRIMARY AMENDMENT TO ORDINANCE 04-30 AND THE MOTION ON ORDINANCE 04-30 HAVING VOTED IN THE AFFIRMATIVE ON ALL OF THOSE MOTIONS.

There was no discussion.

VOTE: YES: NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

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.)

Dennis Novak requested removal of Item I.

Rick Ladd requested removal of Item J.

Mayor Cushing stated that these two Items would be taken up under New Business as Items B. and C.

A. Homer City Council unapproved meeting minutes of July 26, 2004 Regular Meeting. City Clerk. Recommend approval.

B. Ordinance 04-38, Of the City Council Authorizing the City Clerk to Make Revisions to Ordinance 04-11(A), Pursuant to HCC 1.08.060, Revisor Authority. City Clerk with review and concurrence by the City Attorney and the City Manager. Recommend introduction for first reading and conduct public hearing and second reading on August 23, 2004.

C. Ordinance 04-39,Of the City Council Amending Ordinance 04-26, to Appropriate Funds from the HAWSP in the Amount of $180,000.00 to Replace Old PVC Water Pipe with HDPE Pipe Along East End Road and Authorizing the City Manager to Execute the Appropriate Documents. City Manager. (Fiscal Note: Funding Source: Homer Accelerated Water and Sewer Program and Expenditure: East End Road PVC Pipe Replacement $180,000.00. Account 215-829.) Recommend introduction for first reading and conduct public hearing and second reading on August 23, 2004.

D. Ordinance 04-40(S), Of the City Council of Homer, Alaska Accepting and Appropriating a Reimbursable Grant not to Exceed $9,000.00 from the Department of Military and Veteran Affairs Division of Homeland Security and Emergency Management for the Hazard Mitigation Project and that the City Manager is Authorized to Execute the Appropriate Documents. City Manager. HVFD. PWD. (Fiscal Note: Revenue: DHS&EM Reimbursable Grant, Account 151-749-4520, Expenditure: Account 151-749 Hazard Mitigation Plan $9000.00.) Recommend introduction for first reading and conduct public hearing and second reading on August 23, 2004.

E. Ordinance 04-41, Of the City Council of Homer, Alaska, Amending Homer City Code Chauffeur's License, Paragraph 8.12.200(a)(2), to Specify that the Applicant shall Possess a Current Alaska State Driver's License. HPD. City Clerk. Recommend introduction for first reading and conduct public hearing and second reading on August 23, 2004.

Memorandum 04-113, from the Homer Police Department as backup.

F. Resolution 04-70, Of the City Council of Homer, Alaska, Directing the Homer City Parks and Recreation Commission to Consider and Make Recommendations Regarding the Establishment of a Homer Adopt-A-Trail Program. Ladd. Beck. Recommend approval.

G. Resolution 04-71, Of the City Council of the City of Homer, Alaska Authorizing the City Manager to Execute Amendment Seven to Lease 2443, with the Alaska Department of Public Safety for Office Space at the Homer Police Department to Extend this Lease for Four Months Beginning August 1, 2004 through November 30, 2004 in the Amount of $723.24 per month. City Manager. (Fiscal Note: Account 100.4650. Revenues of $723.24 per month budgeted.) Recommend adoption.

H. Resolution 04-72, Of the City Council of Homer, Alaska Extending the Auditor Contract with Mikunda, Cottrell & Co. for 2004 and 2005 in the Amount of $41,000.00 per Year and Authorizing the City Manager to Execute the Appropriate Documents. City Manager. (Fiscal Note: $41,000.00 per year, budgeted 100.100.5210, City Council Professional Services.) Recommend adoption.

Memorandum 04-114, from Finance Director as backup.

I. Memorandum 04-112, from Councilmember Ladd, Re: Economic Development Commission reactivation. Recommend approval.

To New Business.

J. (Substitute under agenda approval.) Memorandum 04-115(S), from Mayor, Re: Reappointment of Michael Hawfield to the Library Advisory Board, Appointment of John Velsko to the Prince William Sound Regional Citizen Advisory Council, Valerie Connor to the Planning Commission and Dennis Gann to the Parks and Recreation Commission. Recommend confirmation.

To New Business.

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

VOTE: (excluding Items I. and J.) NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

VISITORS

Hannah Harrison reported on the Envirathon Team, five individuals, from Homer, after winning the state competition, that went to the National competition in West Virginia. She summarized the trip, preparation for the competition and that the Alaska Team did better than last time, coming in 43rd. She advised the Council that she is giving this report, because she feels it is important for the Council to be aware of the activities of Homer's Youth. She thanked the Homer Soil and Water Conservation District who provided the scholarship to travel to the Nationals, Al Poindexter of Anchor Point Greenhouse, teacher Bridget Polly, Malcolm Brown, Jim De Pasquale of Homer Land Trust, Mark Kinney from Homer Soil and Water District and Sue Mauger from Cook Inlet Keeper.

ANNOUNCEMENTS/PRESENTATIONS/BOROUGH REPORT/COMMISSION REPORTS

Cinda Eckert presented herself at the Council's public address table with the intention of giving a report from the Homer Hockey Association (HHA). Mayor Cushing, since this is not the appropriate time for a member of the public to give a report, asked the Council, on behalf of Cinda Eckert, for permission for her to give said report. The Council, graciously, allowed Mrs. Eckert to give the Hockey Association Report:

English Bay Corporation are willing to build and house the Ice Rink facility on the Spit. Long term lease negotiations are in process. The Arctic Winter Games funds will be used to purchase and install the refrigeration systems and the boards. The Rasmuson Foundation, under this new lease plan, are willing to fund another $450,000.00 contingent upon a long term lease with the English Bay Corporation. There is no intention to pursue the improvement of the HEA site on Waddell Way.

On behalf of the HHA she relayed appreciation to the Mayor and the Council for all their time and effort and energy on this project. She stated that they believe this new opportunity is, really, a blessing and therefore, they don't want anything from the City today and so the City can concentrate on the Library and the Animal Shelter. She responded to some questions of the Council:

HHA is asking for a 20 year lease. Financial obligations will not be based on fair market value, will be subsidized by English Bay. The figure has not been set, because they are still working on the overall costs of the building and so forth. HHA has a budget, is prepared and has done cost projections. HHA is hoping that this is the answer and that they will not have to search for another site or ask the Council for any more inflatable dooms. The plan and hope is to have the rink ready for use in February. Arctic Winter Games is wanting to do a trail run in March or April 2005. In the Off Season, HAA plans to put the refrigeration in concrete to protect it so the building could be used for other use, would like to sublet it and have not given any consideration to sublettors. She concurred that may be Farmer's Market, Indoor Soccer Association etc.

Mayor Cushing commented that, needless to say, he has spent a month of his life making this project happen and that he is thrilled. He noted that last week the Council signed their formal agreement with Arctic Winter Games, which includes much more than just the rink such as demonstrations, Volley Ball and Basket Ball, Police protection and housing needs. Therefore, the City is going to still be involved through the Arctic Winter Games.

Mayor Cushing called for a recess at 8:09 p.m. reconvening the meeting at 8:26 p.m.

PUBLIC HEARING(S)

A. Ordinance 04-32(A), Of the City Council of Homer, Alaska Approving and Submitting a One Half of One Percent (0.5%) Increase in the City Sales Tax to the Voters for Voter Approval at the October 5, 2004 Municipal Election and Providing for a Maximum Property Tax Rate in 2005 of 4.50 Mills if the Sales Tax Increase is Approved by the Voters. City Manager. Mayor and Council. (Fiscal Note: Projected net revenue - $470,000.00.) (First Reading June 28, 2004,Public Hearing July 26 and August 9, 2004 and Second Reading for August 9, 2004. )

Stan Welles, City resident, testified that it was a good point that Councilmember Stark brought up and that he is not at all in favor non City residents influencing what the residents pay for in taxes. He commented that one side of the sea saw is to endeavor to increase earnings at the current tax rate, given the enormous reluctance and stubbornness and influence to do otherwise, then the City is forced to lay a tax on the residents. He stated that this particular tax is somewhat of a smoking mirrors, asking for one half of a percent sales tax increase and lower property tax, temporarily. He commented on the revenue and was advised that this actually $ 470,000.00. He voiced his opinion that it is just ironic then that still this is just about an exact sea saw, because if one looks at the potential customer of Fred Meyer, being the box store recipient, beneficiary, their revenue just about exactly balances out that out and the sea saw is balanced without this tax increase. He encouraged the Council to vote this down that it is an insult to the intelligence of the community.

Kyra Wagner, City resident, relayed conversation with someone from out of town who indicated that she would be happy to pay some kind of tax for the fact that she uses of City services. She voiced her opinion that if the Council put this vote up about Fred Meyer to everyone outside of the City there may have been a very different outcome. She said that since the non City residents don't have a voice in what happens with the City and use City services, the higher sales tax and lower property tax makes sense.

Lolita Brache, lives outside the City, advised that she is one of those people that Kyra is talking about and that she would be fine with paying her share of the costs of City services. She stated that she uses the Library and the services in the City and that she does not understand all the complexities of how the Council is proposing to do this, but she would be willing to pay her share through taxes or whatever else or there has to be a better way to get that share from the Borough.

STARK/BECK - MOVED FOR THE ADOPTION OF ORDINANCE 04-32(A) BY READING OF TITLE FOR SECOND AND FINAL READING.

Councilmember Stark noted that the money is needed and that this is a good way to do it, because it comes from everybody in the community that is using the services. He noted the talk about service areas and advised that the State Constitution does not allow the formation of service areas adjoining cities where the area could be annexed; therefore, the main vehicle to get some participation by residents outside the City that are using the various City services, maybe only the roads, is the sales tax. He voiced his opinion that this is a very moderate increase and that six percent total is the max. He noted that more money is needed and they will find some more and there are ways to find it. He emphasized that nobody really wants to increase taxes.

NOVAK/LADD - MOVED TO AMEND MAKE NO CHANGE IN PROPERTY TAX RATE STRUCTURE AND SIMPLY READ ONE HALF OF ONE PERCENT.

Council discussion points:

• Without the property tax reduction the revenues go from $470,000.00 to $645,494.00.

• The property taxes have, previously, been decreased.

• The City is looking at a short fall in the 2005 Budget around $900,000.00 resulting from increases in City insurance, medical insurance, PERS Contributions, COLA increase. Equipment needs and etcetera are not even part of this $900,000.00.

• The residents/the voters may be more willing to approve the areawide sales tax if there were a reduction in the property tax.

• There are a lot of areas around the City that would like to annex to the City, because of City services.

• KESA and Road Service Areas reduce the difference in the mill rate from outside the City to inside the City.

• There is a disproportionate application of sales tax within the City compared to those outside the City.

• People inside the City are paying utility bills, etcetera, year round whether a seasonal sales tax or a year round sales tax.

• The property tax does not make that much difference unless the property value is huge.

FENSKE/STARK - CALLED FOR THE QUESTION.

VOTE: (question) NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

VOTE:(primary amendment one) YES: NOVAK, FENSKE, LADD, YOURKOWSKI.

NO: STARK, BECK.

Motion carried.

Property Tax decrease deletions: Title deletion: AND PROVIDING FOR A MAXIMUM PROPERTY TAX RATE IN 2005 OF 4.25 4.50 MILS IF THE SALES TAX INCREASE IS APPROVED BY THE VOTERS. and Section 3. For property taxes levied and assessed in calendar year 2005, the property tax rate of levy set by the City Council under Homer City Code Section 9.04.040 shall not exceed 4.25 4.50 mils.

FENSKE/STARK - CALLED FOR THE QUESTION ON MAIN MOTION.

VOTE: (call for question) NO: LADD, YOURKOWSKI, STARK, NOVAK, BECK, FENSKE.

Motion failed.

LADD/FENSKE - MOVED TO RECOMMEND THAT SECTION 5 JUST BE STRUCK.

There was no discussion.

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

Motion carried.

Section 5. was deleted. The City Manager and City Clerk are authorized to provide an explanation to the voters regarding the Council's finding that the new revenues generated if this proposition is approved by the voters are needed to provide for construction and operations costs associated with the new Homer Public Library, maintenance and operations costs associated with the new animal shelter and new ice rink, and other priorities identified by the recently adopted Long Range Fiscal Plan.

There as no further discussion.

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

NO: LADD.

Motion carried.

The projected revenue is $645,494.00 at 1/2 of one percent sales tax increase and adding the property tax reduction back in.

STARK/FENSKE - MOVED FOR IMMEDIATE RECONSIDERATION.

There was no discussion.

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

Motion carried.

There was no discussion.

VOTE:(revote main motion as amended) YES: NOVAK, BECK, FENSKE, YOURKOWSKI. STARK.

NO: LADD

Motion carried.

B. Ordinance 04-37, Of the City Council of Homer, Alaska, Authorizing Use of $9,750.00 from the Homer Accelerated Roads Program (HARP) Funds and $9,750.00 from the Homer Accelerated Water and Sewer Program (HAWSP) Funds for Slope Stabilization of the Ocean Bluff on Two City Lots along Ocean Drive Loop and Authorizing the City Manager to Execute the Appropriate Procedures. City Manager. (Fiscal Note: Funding Sources are the HARP and HAWSP $9,750.00 each and Expenditure Account 151-741 Ocean Drive Loop Bluff Erosion Control Project $19,500.00. City Manager. (First Reading July 26, 2004, Public Hearing and Second Reading August 9, 2004).

There was no Public Testimony.

FENSKE/BECK - MOVED FOR ADOPTION OF ORDINANCE 04-37 BY READING OF TITLE.

Council discussion points:

• Not all residents are in favor of using HARP and HAWSP for other than road, water and sewer improvements.

• The bluff erosion has jeopardized the City road, water and sewer lines.

• This is preventative maintenance.

• Liability with the City's ownership of these two parcels.

• Appropriate use of these funds for safety reasons.

Mayor Cushing advised that he had received, today, from one of the adjacent property owners, Findlay Abbott, a proposed scenario of doing about half of what the City is proposing to do, adding parking, dedicated walkway, and replacing the berm with a guard rail. This will be copied to the Council. He advised all of offers of volunteers to do some landscaping. The money should be released for the slope stabilization. He commented that the alternative from Mr. Abbott shows some stairs with a landing which would clearly have to come from a grant and etcetera.

Council comments:

• •Public Works Director Meyer had discussed the possibility of stairs at a previous meeting.

• •There is a lot of potential for beach access right now, although one has to be careful, once down on the seawall, to not encourage folks on the wall itself.

• •Consideration, in the future, for access to the beach and this matter be turned over to Parks and Recreation.

• •There is a lot of potential.

• •Something does need to be done and this is the first step.

• •Locate property lines.

• •Don't want to encourage the public to be on private property.

VOTE: YES: NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

ORDINANCE(S)

A. If Reconsideration passes: Ordinance 04-30(A), Of the City Council of Homer, Alaska Approving and Submitting a Loan and Long Term Debt Authorization for the Purpose of Financing and Constructing the New Homer Public Library to the Voters for Voter Approval at the October 5, 2004 Municipal Election. City Council. (Fiscal Note: $2.2 million, payment amount $133,081.93 at 4.375% interest, 30 year payment schedule.(First Reading June 14, 2004, Public Hearings for June 28 and July 26, 2004 and Second Reading July 26, 2004. Reconsideration of amendments August 9, 2004.)

Memorandum 04-116 from the Road Standards Committee.

If reconsideration passes: Only the amendment may be discussed pursuant to Robert's Rules of Order. The main motion may not be discussed and once the amendment is reconsidered the vote on the main motion is called for.

Secondary amendment: LADD/YOURKOWSKI - MOVED TO AMEND TO ADD AT THE END "BY THE CITY COUNCIL".

Council discussed the secondary amendment that the City Attorney stated that the amendment does muddy the waters.

VOTE: (Revote secondary amendment) NO: YOURKOWSKI, STARK, NOVAK, BECK, FENSKE, LADD.

Motion failed.

Primary amendment: YOURKOWSKI/BECK - MOVED TO AMEND 04-30 TO DELETE SECTION THREE AND TO ADD ON THE END OF THE PROPOSITION LANGUAGE, THE FOLLOWING: ONCE A FUNDING MECHANISM FOR REPAYMENT HAS BEEN DEFINED.

Discussion was on the process of the reconsideration and reason for the need to delete the amendment. The City Attorney's input was reiterated in that it is best to leave this amendment out of the question. The comments regarding the budget shortfall and list of items being increased under Ordinance 04-32(A) were echoed.

VOTE: (Revote primary amendment) YES: LADD.

NO: YOURKOWSKI, STARK, NOVAK, BECK, FENSKE.

Motion failed.

Mayor Cushing called for a recess at 9:16 p.m., reconvening the meeting at 9:26 p.m.

Since the primary amendment was materially amended, reconsideration is allowable. There were some comments regarding the amendment, specifically identifying the funds to repay this loan.

NOVAK/BECK - CALLED FOR RECONSIDERATION OF THE PRIMARY AMENDMENT.

There was no discussion.

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

Motion carried..

NOVAK/BECK - MOVED TO DIVIDE THE QUESTION.

There was no discussion.

VOTE:(divide the question - two parts) YES: NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

PART ONE: DELETION OF SECTION THREE.

City Manager Wrede he responded to Council inquiry, as to what he would say in a ballot explanation etcetera, the following: "I am going to say that the money is going to come from the General Fund, and, if the Council chooses to take the loan based on their financial situation at the time, the money will come from the General Fund and we'll make the payments. Well, we are back to the General Obligation question, it is a general obligation of the City. So if the voters authorize something like this they're authorizing the Council to take a loan. That does not mean that the Council has to take a loan and by the time that occurs you'll know a lot more; about other grants, about legislative appropriations, about other tax issues having to do with us, the Borough, and the true cost of the Library. So we'll have a lot more information at that time that we can bring back to the Council. It won't be up to Dean ⁽⁵⁾, and I. We are not going to make the decision to take a loan or not take a loan. It will be a Council decision. It will be General Fund monies and the Council will make that decision when the time comes based on the information that it has."

Councilmember Stark stated that the more information the public has the better.

VOTE:(Section three) YES: NOVAK, FENSKE.

NO: STARK, BECK, LADD, YOURKOWSKI.

Motion failed.

Added back: Section 3. The City Manager and City Clerk are authorized to provide an explanation to the voters regarding issues such as the terms of the loan and how the loan would be repaid.

PART TWO: ADDITIONAL WORDING TO PROPOSITION.

There was no discussion.

VOTE: (additional wording) YES: LADD.

NO: YOURKOWSKI, STARK, NOVAK, BECK, FENSKE.

Motion failed.

The words "ONCE A FUNDING MECHANISM FOR REPAYMENT HAS BEEN DEFINED" will not be added to the proposition question.

Main motion: STARK/FENSKE - MOVED TO ADOPT ORDINANCE 04-30 BY READING OF TITLE.

There was no discussion.

VOTE: (Revote Main motion as amended, reconsidered and amended): YES:YOURKOWSKI, STARK, NOVAK, BECK, FENSKE.

NO: LADD.

Motion carried.

B.1. Ordinance 04-33, Of the City Council of Homer, Alaska Amending Homer City Code Chapters 21.32, 21.48, 21.49 and 21.50 to Increase the Allowable Footprint Area of Buildings used for Retail and Wholesale Business to 66,000 Square Feet in the CBD, GC1 and GC2 Zoning Districts. Stark. Ladd. (First Reading June 28, 2004, Public Hearing July 26, 2004, Second Reading for August 9, 2004. )

B.2. Ordinance 04-34, Of the City Council of Homer, Alaska Amending Homer City Code Section 21.48.040 (e) (1) to Read 45,000 Square Feet in the CBD, and Section 21.49.040 (e) (2) to Read 55,000 Square Feet in GC1 East End Road, and Section 21.49.040 (e) (3) to Read 25,000 Square Feet in GC1 Scenic Gateway. Novak. (First Reading June 28, 2004, Public Hearing July 26, 2004, Second Reading for August 9, 2004. )

Memorandum from the Planning Commission regarding their Review, as backup.

Councilmember Stark advised of a conflict of interest in that he owns property in the airport clear zone that the Department of Transportation and Public Works will probably be purchasing from him, and that this property is in the Airport Master Plan and also in the GC2 Zone and that it will not influence his vote on this matter. In response to Mayor Cushing, he said that he presumes that this is one of the parcels listed in the information in the laydown/supplemental packet ⁽⁶⁾ that there are 79 parcels listed, three of which are inside the City one being his home and the parcel in the GC2 is one of the others and is just to the north east of the run way 03, and the Airport Master Plan does require for it to be acquired as part of the clear zone. He advised that about half of this is wetlands and that there are to be no structures in the clear zone. In response to Council he voiced his opinion that this Ordinance does not increase the value of his property. He further responded to the Mayor that he purchased this property two years ago.

Mayor Cushing ruled that Councilmember Stark does not have a conflict of interest and asked if any of the Council desired to over rule this decision.

There were no comments by the Council.

STARK/LADD - MOVED TO ADOPT ORDINANCE 04-33 BY READING OF TITLE.

Council discussion points - pros and cons:

• Things that point to a yes vote on this Ordinance: The Standards contained in Ordinance 04-11, the lawsuit on the initiative, the City's financial crisis, and the voter's decision on the initiative.

• Agreement with Councilmember Fenske's comment of June 23, 2003 that with the standards a cap is not needed.

• The standards are so over done, including that 15% of the parcel be landscaped. Ensure that Homer will have the most environmentally pleasing large buildings in the United States. Only the builder of a 66,000 square foot building could afford to comply with these standards. A lesser cap is a joke, because nobody could afford a lesser building and the standards will never go into effect.

• Lawsuit on the initiative will go away. The City Attorney would merely have to file a dismissal stating that the issue is moot, because the Council, after advise from the Planning Commission, has adopted the language of the initiative.

• Agreement with Councilmember Fenske, January 9, 2004, following agonizing budget deliberations, saying that the Council needs to look at the budget and where to get revenue.

• Fiscal problem has worsened. First Quarter sales tax receipts are 10% below one year ago and the first half sales tax receipts are 34.6% of the budgeted amount. The Finance Director has advised that Council is looking at a $900,000.00 budget short fall for next year.

• Homer has been described as a Fairy Tale Village. Perhaps someone is thinking of Vale, Colorado where taxes and land values are so high that ordinary people have to live 150 miles away and commute to jobs in Vale.

• Homer is headed that same path unless revenues are generated for the new library, new animal shelter, new hockey rink and a town center with a possible convention center.

• Most of the jobs are with the City, School District, HEA and the Hospital. Homer needs revenue and jobs.

• Fiscally, the City cannot afford its appetite for amenities.

• $500,000 in annual property and sales tax income from a large store would to a long way to plugging the fiscal cap.

• The initiative had a 63% yes vote, incorporated within this Ordinance. The voters have spoken.

• Those running for election this year and the next two years should take notice of that 63% majority. The electorate, Council's boss, has spoken. Council should listen and carry out the instructions of the electorate by voting in this Ordinance.

• Homer Comprehensive Plan and Update. One can read into the plan just about what one wants to read into it. The position can be taken that the Central Business District (CBD) should not have a large store or that it means business and development of business should not be stymied.

• Communication mis fire. Philosophies hitting.

• The addition of a large store would be beneficial to this community. 984 individuals, electorate spoke, saying yes that they would like to see this.

• Disagreement with the statement that the larger store, of the size being discussed, will do the damage to the smaller.

• Budget nightmare for this community.

• As seen in many communities the core of the town moves where that larger store is located. The small business will gravitate to larger store's area.

• 66,000 square feet is not large in terms of large stores. Initially a greater than 100,000 square foot store was proposed, then 70,000 and then 45,000 square feet.

• This Ordinance is a fair compromise one of which provides the ability for those in town to expand, allows for competition, which is necessary for solid grown in the community.

• There has been a lot of discussion by a lot of well meaning people. The best decisions have to be made. Large for Homer is not large.

• It seems that the general consensus, from those who live in communities where the larger stores have located, is that these larger stores do impact the smaller businesses, based on the merchandise they might carry..

• The bottom line here is that there has been a lot of rhetoric and testimony. What is a good fit for this town might be subjective. It is great to have a large store here, but it needs to be of a size that works in this community. 66,000 is totally out of portion for this community in the Central Business District.

• There is going to be more growth in this town and there are going to be more stores in this town. There are new things going on out there.

• On the books right now is a size cap of 35,000 square feet. A larger business could come in and have two stores at 35,000 square feet each, one could sell groceries and one could sell clothes. Therefore, business is really not limited.

• The Planning Commission's decision was based on the City of Homer's ability to integrate a larger store than 35,000 or 45,000 square feet into the City's current infra structure as well as the focus and attention the Commission paid to the dictates of the Comprehensive Plan and the Comprehensive Plan update.

• The Commission set the cap at 35,000 square feet. 45,000 square feet is an attempt to respond to those individuals and businesses that wanted a larger size cap then the City currently had.

• When Ordinance 04-11(A) was adopted it felt like everyone won, only to discover that once again there is polarization into being us and them.

• The initiative was saddening, because of the lost community focus to work together cooperatively to come to some middle ground. There were differing views, interpretations and perceptions. There is no accounting for perception.

• As a member of this Council - have to take direction from the Homer Comprehensive Plan, the Commissions that give the Council direction, the Alaska Statutes, and the current and future safety and well being of the citizens of Homer as well as citizens of the greater Homer area and the visitors.

• Desire to maintain the small community character.

• The standards would have to be revised, if this Ordinance is passed, to accommodate the larger square footage.

• This issue is not growth, nor about competition. It is about impact on the City infra structure; traffic, the fire department and the police department.

• Everyone wants growth, competition, cheap products.

• Need to prepare for growth.

• No one wants craziness on the Sterling Highway.

• The Planning Commission does not want growth or development.

• The Standards are good for a building of any size. The Standards are a criteria for sound, for lighting, for buffers, for set backs, for parking, for site design and site development.

• 66,000 square feet provides the ability for a store, such as some of those here in town, to expand and to provide the type of shopping that some of the people in town are asking for.

• The middle ground, with regard to retail, is not smaller.

• Figures were not based on economic data.

• The people knew what they were voting on and know what they want.

• The people want baby shoes and clothing in such a way that they do not have to drive 80 miles and they want to be safe. They want to be able to exchange something the same day, if needed.

• Keep the dollars here, keep the tax dollars here.

• These are just points being made.

• What will it take a month to keep a 66,000 square foot store going, a couple of million? Some of the dollars may have gone up the road, but it was not $2 million, so where is the rest of this going to come from, it will come from the rest of the businesses in the community.

• There is a 2% growth in this town. People are not getting rich in this town, they are making a living. The business people in this town make a living, period.

• Council is comfortably ignoring the hard economics and this will come back and be part of the picture.

• There are some businesses, in this town, that have deep pockets, not many.

• Is Council going to work for new businesses so people can have more stores - sure.

• Did Council hear the response from the people that they want more places to shop - sure.

• Would Council like more places to shop - sure.

• Business needs to fit with the community.

• It is tough to get a business going. Large store/corporation economics are totally different.

• There is one responsibility, although Council listens to what people say, Council needs to take all comments into consideration, distill it down and then decide what is best for Homer and what works best for Homer.

YOURKOWSKI/ - MOVED TO AMEND ORDINANCE 04-33, TO ADD A SENTENCE ON THE END THAT SAYS THE FOLLOWING: THIS ORDINANCE WILL BECOME EFFECTIVE AFTER THE PLANNING COMMISSION AMENDS THE LARGE BUILDING STANDARDS TO ACCOMMODATE 66,000 SQUARE FOOT BUILDINGS.

Motion died for lack of a second.

Councilmember Fenske stated that it seems like the focus on this is to make size exclusive of the standards, size being only one of the standards. He voiced concern about things that are not liked in the standards being amended, emphasizing that there are reasons why the Planning Commission came to the decisions that they came to and that he does not believe they are anti development. He pointed out that some members of the Planning Commission are pro development and all of them are interested in development, since this is what planning is all about. He stated that the standards are not a separate issue, voiced his hope that the standards are a living document and will be modified from time to time through a deliberative process that includes the input from the people. He suggested that the issues be moved through the policies procedures that are set up in the City or to do away with all of this stuff and if one has the biggest stick - that one make the rules.

Councilmember Stark pointed out that 52 people testified before the Council that they wanted small stores and not large stores, many from outside the City. He stated that the election showed 983 ⁽⁷⁾or 63% of the people wanted a larger store. He objected to the revision to the standards to develop standards for the 66,000 square foot store, an exercise in futility since these same people are going to come and testify in objection.

Discussion ensued between Councilmembers Fenske and Stark about the election, Ordinance 04-33 correcting the defects and about what the community wants.

LADD/BECK - CALLED FOR THE QUESTION AND TO CEASE DEBATE.

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

Motion carried.

VOTE: (main motion) YES: LADD, STARK,

NO: FENSKE, YOURKOWSKI, NOVAK, BECK.

Motion failed.

Mayor Cushing called for a break at 10:32.5 p.m. , reconvening the meeting at 10:45 p.m.

NOVAK/LADD - MOVED TO ADOPT ORDINANCE 04-34 FOR SECOND AND FINAL READING.

Council discussion points:

• This particular Ordinance uses the square footage in the CBD of 45,000 square feet.

• This was introduced a while back to have something going in conjunction with the original proposition voted on, as a compromise Ordinance that would allow for development of a larger facility, yet not too large and that it would define the square footage within the CBD and also expanded, by 10,000 square feet, GCI on East End Road and that does not effect GC2 at all or Marine Industrial or Commercial.

• Increase of 5,000 square feet to 25,000 square feet on GC1 the Scenic Gateway.

• There is only so much space for large facilities in the CBD, a limited number of places to put these.

• Another commercial district is needed. The town is going to grow and space is needed for larger commercial development and by rights it should be outside of the CBD.

• Example of Gig Harbor, Washington that had 100 acre tract at the edge of City limits and who turned that into an area for large facilities. This did not affect the character of the community and still provided revenues.

• This 45,000 square foot is a max for what the CBD can handle.

• This figure is not a reflection of the Citizen initiative, but is a figure which is closer to the Citizen initiative than the figure presently stands in code.

• 35,000 square feet is restrictive and 45,000 square feet is a whole lot less restrictive. It also allows for some expansion of the present large store.

• May allow the City to garner some additional revenue from a new larger store.

• Allows focus to come to middle ground.

• Allows for growth and some development, which will be an asset to the entire community.

• This larger cap is needed for the existing merchants.

• The current standards can be applied to 45,000 square feet.

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

NO: FENSKE.

Motion carried.

STARK/LADD - MOVED TO IMMEDIATELY RECONSIDER.

There was no discussion.

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

Motion carried.

There was no discussion.

VOTE: (revote) YES: LADD, YOURKOWSKI, STARK, NOVAK, BECK.

NO: FENSKE.

Motion carried.

C. Ordinance 04-35, Of the City Council of Homer, Alaska Adopting the Final Homer Non Motorized Transportation and Trails Plan (NMTTP), Amending the Homer Comprehensive Plan to Include the NMTTP and Recommending Adoption by the Kenai Peninsula Borough. (First Reading June 28,2004, Public Hearing July 26, 2004, Second Reading for August 9, 2004.)

LADD/NOVAK - MOVED FOR THE ADOPTION OF ORDINANCE 04-35 BY READING OF TITLE.

There was a brief discussion in favor of incorporating the, important, Non Motorized Transportation and Trails Plan into the Comprehensive Plan. It was noted that the Council adopted a Resolution on the Consent Agenda about the Adopt a Trails Plan, that has more buy in by the community. The work of the Dowl Engineers was acknowledged, appreciation was expressed for the amount of work that they did in tying the community together and for getting this on paper. Now it is time to get this off of paper and into reality.

VOTE: YES: NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

CITY MANAGER'S REPORT

A. City Manager's Report (Updates/Followup - Multi Purpose Ice Rink Facility, Spit Restrooms, Spit Parking Plan, Animal Shelter, State Troopers, Ordinance 04-33 and 34, Library, Ordinance 04-39, Use of the unexpended 1 MG Tank grant money for design and engineering of a Waterline Main on West Hill Road, Scenic Highways Project, Statistical Reports, KPB Parcel 173-160-5400 (Just outside of Study Area 1 - Gateway area), short term leases, Zoning Code Enforcement, Fire Department Fire Hose Test, Water and Sewer Loans; August Employee Anniversaries - Rusty Cheney PWD 21 years, Steve Dean P/H 16 years, Bonnie Judge P/H 14 years, Dan Gardner PWD 13 years, Scott Elmer HVFD 11 years, Kathy Pankratz Library 10 years, Joe Hamilton PHD 8 years, Carey Meyer PWD 5 years, Bob Kosiorek PWD 2 years and Roger Cornett Jail Officer 2 years; From City Attorney regarding the Limits on Loans and Bond Authorization; Letter to Borough Assembly about KPB Parcel 173-160-5400; Prince William Sound RCAC on Invasive Species and Board Vacancy; Fire Chief Painter - fire hose replacement.)

The Manager was given the go ahead to pursue acquisition of KPB Parcel 173-160-5400 with an expressed preference for trading rather than purchasing. Council emphasized their desire to retain ownership of the South Peninsula Hospital Property. The progress of the Animal Shelter project and temporary shelter were reported. Volunteer work and contributions on the Animal Shelter and temporary shelter were recognized and commended. It was noted that Volunteer assistance is still needed to finish the temporary shelter.

The Manager advised the Council that unexpected expenditures are on the fire hose replacement are around $7,000.00 and a 35 foot ladder that failed a UL test and will cost about $1,100.00 to replace.

COMMITTEE REPORT

A. Road Standards Committee, synopsis of July 27, 2004. Next meeting is Tuesday, September 28, 2004 at 6:30 p.m.

B. Town Center Development Committee, synopsis of July 22, 2004. Next meeting is Thursday, August 26, 2004 at 6 p.m.

Councilmember Fenske reported on the Kachemak Bay Branch Community College project and the 1% for the Arts, about $22,000.00.

PENDING BUSINESS

None scheduled.

NEW BUSINESS

A. Memorandum 04-117, from City Planner, Re: Council action based off action by the Planning Commission on Resolution 04-69(A) with Staff Report PL 05-57.

Draft Ordinance submitted, sponsored by Councilmember Novak. Ordinance 04- DRAFT, Of the City Council of Homer Alaska, Amending Homer City Code Chapters 21.44, Rural Residential District, 21.45 Urban Residential District, 21.48 Central Business District, 21.49 General Commercial 1 District, 21.50 General Commercial 2 District, 21.52 Marine Commercial District, 21.53 Marine Industrial District, and 21.54 Open Space - Recreational District, Adding Uses Under Conditional Uses.

Mayor Cushing stated that he believes he still has a conflict of interest in this item even though the Ordinance is specific to all but one zone in the City. He noted that it was clearly initiated by the fact that one of his major clients, English Bay, is the one proposing to build the Ice Hockey Rink for the Homer Hockey Association and this Ordinance is necessary to the end. Therefore, declaring a conflict of interest he handed the gavel to Mayor Pro Tempore Fenske and left the table at 1:35 p.m.

Mayor Pro Tempore Fenske ruled that the Mayor has a conflict.

STARK/BECK - APPEALED THE RULING OF THE MAYOR PRO TEMPORE.

There was brief discussion.

VOTE:(Mayor's conflict of interest) YES: STARK.

NO: BECK, FENSKE, LADD, YOURKOWSKI, NOVAK.

Motion failed. The ruling was upheld by the Council.

NOVAK/STARK - MOVED TO PROPOSE TO INTRODUCE THIS ORDINANCE FOR CHANGES TO BE SENT DOWN TO THE PLANNING COMMISSION FOR A PUBLIC HEARING PRIOR TO FORWARDING IT BACK TO THE CITY COUNCIL FOR A VOTE.

Councilmember Novak noted that this is a proposed Ordinance to allow for indoor and outdoor recreational facilities and that the Residential Office is the only District ⁽⁸⁾ not included. He noted that this Ordinance covers the Jack Gist Park and the Spit. He outlined the districts involved as listed in the title.

It was clarified, by Councilmember Novak, the maker of the motion, and Mayor Pro Tempore Fenske that the intent of the motion is to forward with this draft Ordinance as a proposal to be sent, with recommendation of the Council to the Planning Commission for consideration and public hearing.

There was no further discussion.

VOTE: YES: NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

Mayor Cushing returned to the table at 11: 37 p.m. and received the gavel.

B. Consent Agenda Item I. Memorandum 04-112, from Councilmember Ladd, Re: Economic Development Commission reactivation. Recommend approval.

Recommendation: The Economic Development Advisory Commission be activated for the purpose of advising the City Council on matters of overall economic development as identified in present City Code, 1.78.040. The Commission shall be identified and function in accordance with Chapter 1.78, Homer City Code.

The Economic Development Advisory Commission will review the Overall Economic Development Plan as adopted by the City Council on April 26, 1993, and in light of current economic conditions within the State and City, make prioritized recommendations based upon economic data and information to guide, enhance, and support timely economic development, both public and private.

LADD/STARK - MOVED FOR THE APPROVAL OF THE RECOMMENDATION OF MEMORANDUM 04-112.

There was discussion regarding reactivating this Commission, with the note that this Commission is listed n the City Code. ⁽⁹⁾ The history of the Commission and of the staffing issues was mentioned.

Mayor Cushing, passing the gavel, voiced his opinion and emphasized that the Commission is not needed and is not needed to address the OEDP (Overall Economic Development Plan), that the current Commissions and Council can address this plan and that the Council is the updater of that Plan. He pointed out that the budget, zoning and economic development are the ultimate responsibility of the Council. He commented about the California Governor, Arnold Schwarzenegger, consolidating Commissions and bodies to reduce state costs and encouraged consideration of merging some of Homer's Committees; such as Road Standards Committee, Sewer and Water Standards Committee and the Steep Slope Committee; for consolidation of process, staffing and costs.

Mayor Cushing accepted the gavel back.

Discussion ensued regarding make up of a committee or committees.

NOVAK/LADD - MOVED TO SUSPEND THE RULES TO GO PAST MIDNIGHT TO FINISH THE AGENDA.

VOTE: YES: LADD, YOURKOWSKI, NOVAK, BECK, FENSKE.

NO: STARK.

Motion carried. The meeting will continue past midnight to finish the agenda.

LADD/NOVAK - MOVED TO STRIKE ALL RECOMMENDATIONS THAT ARE PRESENTLY IN THAT MEMORANDUM AND REPLACE WITH THE FOLLOWING RECOMMENDATION: THAT THE CITY MANAGER BE DIRECTED TO WORK WITH THE CHAMBER OF COMMERCE TO INITIATE A PROCESS TO PURSUE DEVELOPMENT AND POTENTIAL ECONOMIC DEVELOPMENT WITHIN THE COMMUNITY.

There was discussion with regard to the Chamber of Commerce (the Chamber). In conjunction with the funds that the Chamber receives from the City the Council is asking that they pursue this accessing of information for economic development. This statement needs to be tied to the funding that the Chamber receives from the City so that the Chamber realizes that they are being asked to perform this service to pursue some needs and find opportunities of economic development within the community and to pass this information on to the City Manager.

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

Motion carried.

LADD - MOVED TO TITLE THIS THING ECONOMIC DEVELOPMENT PERIOD, LEAVE TAKING ADVISORY COMMISSION OUT OF THERE ALSO THERE IS NO NEED, I BELIEVE, THERE ARE SEVERAL PARAGRAPHS THERE THAT WE MAY WANT TO CHOP ALSO AND THE CITY OF HOMER, THIRD ONE DOWN, HAS LIMITED PERSONNEL AND ECONOMIC RESOURCES, WE KNOW THAT, IN ORDER TO SUPPORT ECONOMIC DEVELOPMENT IN A RESPONSIBLE BUSINESS LIKE MANNER THE CITY WILL WORK WITH ORGANIZATION SUCH AS THE CHAMBER, SOMETHING LIKE THAT, THEN THE LAST PARAGRAPH JUST LEAVE IT OFF, CHOP THE MAYOR AND HOMER CITY COUNCIL LAST DISCUSSED, WE DON'T NEED TO HAVE THAT IN THERE, IT IS NOT NECESSARY.

Motion died for lack of a second and that the recommendation only is on the floor.

STARK/NOVAK - MOVED TO PUT THE WHOLE MEMO ON THE FLOOR.

There was no discussion.

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

Motion carried.

BODY OF MEMORANDUM.

Successful economic development in keeping with the City's Comprehensive Plan and community growth is basic to Homer's future. Numerous concepts/ideas, projects, and needs to increase employment, to improve and provide for basic public infrastructure, to enhance cultural and educational amenities, and to attract and develop year-round industries have been suggested or presented to the City of Homer for consideration.

Although the City Comprehensive Plan provides goals, objectives, and action items for the next 3-5 years (1999) regarding land use, it is important that the City facilitates the successful "implementation of an economic growth plan." (Homer Comprehensive Plan Update)

The City of Homer has limited personnel and economic resources, and in order to support economic development in a responsible and business-like manner, Chapter 1.78, City Code, establishes the Economic Development Advisory Commission.

The Mayor and Homer City Council last discussed the Economic Development Advisory Commission in December 2003, but at that time the Economic Development Advisory Commission was viewed as unnecessary as economic data and information could be developed by other existing commissions and submitted to the Council for review and use. Due to other prioritized tasks and business, this process has not occurred, and in order to assist the City of Homer with needed economic development information and projections.

LADD/BECK - MOVED TO AMEND THAT THE TITLE CHANGE TO ECONOMIC DEVELOPMENT AND IN THE THIRD PARAGRAPH EVERY THING AFTER "BUSINESS LIKE MANNER", IS ELIMINATED, SO THAT IT READS: THE CITY OF HOMER HAS LIMITED PERSONNEL AND ECONOMIC RESOURCES, AND IN ORDER TO SUPPORT ECONOMIC DEVELOPMENT IN A RESPONSIBLE AND BUSINESS-LIKE MANNER, INCLUDING THE FOURTH PARAGRAPH AND THE WOULD LEAD INTO WHAT ALREADY APPROVED, "IT IS RECOMMENDED THAT AND THE NEW RECOMMENDATION IN PLACE."

There was discussion.

There was Council consensus that the intent of the Council is that this is not to be another Committee. This is to be part of the Chamber's service to the City for the funding from the City to the Chamber. The information from the Chamber comes to the City Manager and he will pass that onto the Council for action as needed.

VOTE: (primary amendment 3.) YES: NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

Councilmember Ladd voiced appreciation for the amendments and that he feels this will strengthen the City's relationship with the Chamber.

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

Motion carried.

C. Consent Agenda Item J. (Substitute under agenda approval.) Memorandum 04-115(S), from Mayor, Re: Reappointment of Michael Hawfield to the Library Advisory Board, Appointment of John Velsko to the Prince William Sound Regional Citizen Advisory Council, Valerie Connor to the Planning Commission and Dennis Gann to the Parks and Recreation Commission. Recommend confirmation.

FENSKE/BECK - MOVED FOR THE APPROVAL OF THE RECOMMENDATIONS OF MEMORANDUM 04-115(S).

There was some discussion regarding the appointments. It was noted that the Port/Harbor Commission has a vacancy that John Velsko had applied to be on that Commission and could serve in two capacities.

Mayor Cushing suggested that the Council might want to consider making both of the City of Homer Appointees (Representatives) on the Cook Inlet Regional Citizens Advisory Council and Prince William Sound Regional Citizens Advisory Council as Ex Officio members on the Homer Port and Harbor Advisory Commission.

Mayor Cushing advised that John Velsko was very pleased to be the City's Representative on the Prince William Sound Regional Citizen's Advisory Council and that they did not discuss the Port and Harbor Commission.

Councilmember Stark voiced concern regarding the Planning Commission and Parks and Recreation Commission appointments, particular voicing concern regarding the Planning Commission and that they seem to be going off on their own and sort of ignoring the Council. He expressed his preference for an appointment to the Planning Commission of someone that is stronger, with a little more experienced in that area and someone who has demonstrated work ability.

Mayor Cushing advised, in response to Councilmember Ladd, that he generally does not inquire regarding the marital status of his appointees.

Discussion ensued.

VOTE: YES: NOVAK, BECK, FENSKE, YOURKOWSKI.

NO: STARK, LADD.

Motion carried.

RESOLUTIONS

A. Resolution 04-68, Of the City Council of the City of Homer, Accepting and Acknowledging the 2004 Homer Area Transportation Plan. Road Standards Committee. Public Works. Planning and Zoning. Postponed on July 26, 2004 to August 9, 2004.

FENSKE/NOVAK - MOVED FOR THE ADOPTION OF RESOLUTION 04-68 BY READING OF TITLE.

Council discussion points:

• This is a good plan.

• This needs to be accepted and moved ahead on doing a few things done with transportation and get things implemented by next spring.

• Ignoring plans is a terrible waste and in this case has caused problems in that DOT wanted to know about the City's Transportation Plan

• Model extensions that are inaccurately reflected: Waddell Way needs to be on the north side of the boundary on the HEA property. Road comes shooting across on Barnett's property. These lines are not necessarily where the proposed road is going to go.

• The maps have to reflect Council discussion, which is elsewhere in the book. Sometimes people thing the map is the Hole Grail and they don't read the contents of the book and go down the wrong trail.

• Comments from the August 9th Committee of the Whole.

• Councilmember Stark agrees with what the Road Standards Committee came up with.

• Mayor Cushing's concern is that Council just take this mapping and any roads that are shown on an aliquant part going down through wetlands to more wetlands, roads going to nowhere that are taken off and not even shown on these maps. This can certainly happen during the time this goes to the Planning Commission. There are a few roads that are shown wherein the Council acted on vacating the right-of-way. Such as one a couple of meetings ago when the Council trumped the Planning Commission and said get rid of the beach access as well as get rid of the right-a-way. The whole series of roads out by the boat yard needs to be deleted from the maps, the Planning Commission needs to fine tune this, the Road Standards Committee might have already addressed this. Where the land has been dedicated for the Moose Viewing Platform there is a road that cuts in front of that area, a parcel that was given to the Land Trust, there is a trail, and this is the land that Fish and Wildlife would not give to the City for sewer. Two roads below Paul Bank as well as the area where there used to be a road out to a Sports Complex, that no longer exists.

• DOT Traffic Flow Assessment has been pushed back due to DOT projects. There are electronic counters in place. Concern expressed that the numbers will be off regarding Kachemak Drive since this is a detour route to avoid the work on East End Road.

• Signalization was mentioned. One area for a possible controlled intersection is Kachemak Drive and Spit Road.

• Councilmember Ladd and Stark expressed concern regarding the Lake Street and Sterling Highway Intersection. Not everyone agreed that this intersection is a problem section. Round about at this section was discussed and the amount of area that may or may not be needed. Mayor Cushing stated that it was always known that the Triangle Park might be utilized for safer traffic flow.

• On the map recommendations for controlled intersections will be noted, without specifying what type of control. Mayor Cushing asked that no one discount any approach on the traffic controls.

• The Planning Commission will have public hearings on this matter if the Council forwards it to them. City Planner McKibben did not know if the Planning Commission would address the Transportation Plan in one or two meetings.

• The Transportation Plan does come back to the Council for final approval and that it is the Council's Document.

• Model Extension Question: Does Waddell Way, connector from Lake Street to Heath Street, extend to Grubstake, is there an existing right-of-way? Mayor Cushing advised that HEA has said that in the long run they do not want their property north of the part of Waddell Way that is there now or north of Waddell's Cabins and would just as soon the City have this as anyone else and that the City have the first opportunity to get this.

• City Planner McKibben advised that it is important to remember that these are all conceptual and none are specifying the actual location of any location of any particular road and when the consultant drafted the model he picked a location for the extensions, which were merely to distribute the traffic amongst the model. These are general recommendations. Specific locations will be decided later.

• Councilmember Ladd stated that he does not want anyone to think that the City is going after a specific piece of land.

• Councilmember Ladd noted that the road that goes across from the High School, to Heath, does not go in a straight line and will have to be contoured.

• Mayor Cushing asked that Waddell Way show all on HEA property in the final mapping so that there is no question. Half of this is already on City property.

• There is a notation on the maps that state: The alignment of proposed road improvements shown in this map are meant to be approximate in nature and are not definitive. Final road alignments will be determined only through a public design process that will include community involvement. All proposed roads have been widened for graphically purposed only and they may exceed the platted right-of-way where applicable.

• Shellfish Lane (behind the High School) location change from coming down across the contour gently and hitting into where it now stays high and comes down at a ninety degree on an aliquant part. Mayor Cushing noted the affect to the Neil property. Councilmember Ladd noted that Neil was talking about bringing it over gently along the electrical easement. City Planner McKibben advised that when the Road Standards Committee addressed this, took out the specific language referring to Shellfish, which is an east west road off of East Hill, and left the connection to East Hill because it is warranted. On page 375 of the Council's packet or page I-35 of the Transportation Plan is says Heath Street Extension: "The route for the proposed extension will extend Heath Street north to and then east to East Hill Road." Mayor Cushing asked that the maps reflect that specific reference is deleted. Right now the map shows it right down along Heimbuch's property and down the creek. This would be a real tough road. Everyone is striving to make a short cut from the High School to East Hill Road, an alignment that is easiest to build, cheapest to maintain and least disruptive to the neighborhoods, needs to be defined.

• The Maps get used 80 times more than the book and the maps do take on a life of their own The Map becomes the Bible. Everyone likes to look at stuff that they can recognize.

• On the controversial roads there needs to be a note on the map that says see note #.

• There should be notes on all of the proposed routes that refer back to the discussion.

BECK/FENSKE - MOVED TO POSTPONE FOR REVIEW AND PUBLIC HEARING BY THE PLANNING COMMISSION.

It was noted that the Road Standard Committee had reviewed this Transportation Plan several meetings as is depicted in the backup information.

The Plan will go to the Planning Commission with all of the pertinent minutes from the various groups.

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

Motion carried.

AUDIENCE COMMENTS

Audience comments upon any matter.

There were no audience comments.

COMMENTS OF THE CITY ATTORNEY

City Attorney Tans was not present.

COMMENTS OF THE CITY CLERK

City Clerk Calhoun had no comment.

COMMENTS OF THE CITY MANAGER

City Manager Wrede had no comment.

COMMENTS OF THE MAYOR

Mayor Cushing reported that the Changing of the Guard for the Roanoke Island is Friday at 11 a.m. He invited the Councilmembers and suggested that the Councilmembers let the Roanoke Island know as soon as possible to get on the official guest list. The Mayor will give the Roanoke Island a call to advise of potential attendance. He noted that the Council has been doing very well at keeping the meetings short and that it has been a long time since the meetings have gone past twelve o'clock. He congratulated them for the weighty business they covered tonight.

COMMENTS OF THE CITY COUNCIL

Councilmember Yourkowski stated that he will never teleconference again, that he has had trouble picking up parts of the conversation, that he can only hear the Mayor most of the time, and that it is very difficult. He asked if Councilmember Ladd had the same problems when he teleconferenced from South Carolina. He wished the Council a good night.

Councilmember Ladd confirmed.

The Council wished Councilmember Yourkowski a good night.

ADJOURNMENT

There being no further business to come before the Council the meeting was adjourned at 12:36 a.m. The next Regular Meeting is scheduled for Monday, August 23, 2004 at 7 p.m. The next Committee of the Whole meeting is scheduled for Monday, August 23, 2004 at 4 p.m. A Worksession is scheduled for Monday, August 23, 2004 at 5:30 p.m. All meetings scheduled to be held in the Homer City Hall Council Chambers located at 491 E. Pioneer Avenue, Homer, Alaska.

_____________________________________

MARY L. CALHOUN, CMC, CITY CLERK

Approved: _______________

clerk@ci.homer.ak.us, 235-3130, home number 235-2843.

1. Initiative election on June 15, 2004.

2. Percentage of voter turn out 42.42%. 57.85% voted yes.

3. Draft Ordinance attached to Memorandum 04-117.

4. foot print.

5. Dean Baugh, City of Homer Finance Director and Treasurer.

6. Letter from Frank Griswold regarding Councilmember Stark having a conflict of interest.

7. Resolution 04-58(S), and certificate is 984 voted yes and this is 57.85% of the vote.

8. The other two districts not included are the Conservation District and the Bridge Creek Watershed Protection District.

9. HCC 1.78 Economic Development Advisory Commission