Session 02-01, 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 4:08 p.m. to 6:00 p.m. and discussed the regular meeting agenda, the development of City wide survey questions and ramifications of annexation.

PRESENT: COUNCILMEMBERS: CUE, FENSKE, KRANICH, LADD, MARQUARDT YOURKOWSKI.

STAFF: CITY MANAGER DRATHMAN

CITY CLERK CALHOUN

CITY ATTORNEY TANS

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 City Council with substitute pages 10, 21 and 33 of the packet, with typo corrections and a letter from Chris Newby regarding the use of Dredge Spoils, Resolution 02-05.

PUBLIC COMMENTS UPON MATTERS ALREADY ON THE AGENDA

Patricia Brennan stated that last November 2nd she requested the records from the City of Homer of the names and addresses of the Homer Boat Harbor slip owners and was told that these records are exempt from the public records because of the privacy rights of the harbor users. She stated that similar lists have been released and cited examples: December 99 Borough published a list of property owners with assessed property value, City list of property owners with assessed value and amount of assessment to be paid in the Thompson Drive Sewer Improvement District was published in the Homer Tribune this past week. She rhetorically commented that posting the amount of money does not invade privacy, but the names and addresses of slip owners is an invasion of privacy. She read from the City Code: The policy of providing public access shall be broadly and liberally construed. [HCC 1.80.030 last sentence.] She reported filing an appeal on December 4th , voiced dissatisfaction that it did not make the December 10th agenda and that she was told that it had to be filed ten days in advance of a meeting to get on the agenda. She inquired why ten days advance notice was required.

Chris Newby addressed the Council regarding Resolutions 02-04 and 02-05 with particular respect to the authorization of the use of dredge spoils. He stated that he wanted to reiterate his comments in his email to the Council (included with Resolution 02-05 in the packet) and urged the Council to authorize the use of the dredge spoils on the Homer Spit for the erosion control project at no cost to the project to make this project work. Mr. Newby also urged the Council to authorize the City Manager to enter into the contract with the design build team subject to final resolution of cost items and final determination of the cost of the project.

Abigail Fuller commented on Item B. of New Business, Memorandum 02-03, the Brennan records appeal. She stated that government is not some entity in and of itself, it is created by the people and for the people, and belongs to the people. The government is paid for by the people and its records belong to the people. She emphasized that the people have the right to be well informed, to participate in government proceedings and when the government tries to keep public records secret people wonder what else it is trying to keep secret. She pointed out that this raises suspicions and undermines trust in government, if there is nothing to hide then there is no reason to hide the records. Ms. Fuller noted that Homer City Code 1.80.010, Intent, states it is the intention of the City to provide full and free access of the public to municipal records and information so that the people of the City may be well informed at all times as to municipal business. She commented that it appears that the current administration does not want the people to be well informed. Therefore, she said she wonders what it is that the City is hiding. She reported reading an article on the Freedom of Information Act that listed a variety of ways that government officials try to avoid releasing information, adding that she has run into every one of these ways this past year. She stated that it is time the City Council gave some thought as to whether secrecy is a good policy. Ms. Fuller remarked on the Patty Brennan request of records, list of harbor users, being denied as an unwarranted invasion of privacy, and that she fails to see how a simple list of names and addresses can possibly be an invasion of privacy, this is the most public of personal information. She urged the Council to not uphold the denial of records in this case.

Don Lane voiced support for Resolution 02-06, concerning strong standards for conservation and community health and new individual quota programs. He commented on being before the Council several years ago discussing the American Fisheries Act, an act in the Aleutian Chain that allocated pollock shares to both fishermen and processors. The American Fisheries Act tied the quota shares to the processor according to the fisherman's catch history, and if a fisherman fished for a processor in past years he was required to negotiate with that processor in the future in a cooperative agreement. The only way for a fisherman to not be bound to that processor was to take his catch history into open access and fish in open competition with other catcher boats. The reality being that many of the catcher boats that received quota shares are also owned by the same fishing companies that received catcher quota shares. Therefore, the independent fisherman found himself competing in an open access fishery with boats owned by the cannery to which he was trying to sell to, a very non competitive position. Mr. Lane stated that at that time the Homer City Council was urged to support a letter to Senator Stevens requesting that this type of rationalization be "really looked at" in the future. The Council had also been told that this situation was going to continue across the state. Now rationalization of the Berring Sea crab fishery is being discussed as well as how to do this with either a buy back program or IFQ's for crab boats according to catch history. The crab fishery is over capitalized, only about half of the boats are needed, so "they" are trying to figure out how to reduce the fleet. The processors in the Berring Sea area are saying that they want to have their processing quota shares included in this program. There are primarily six major processors in the Berring Sea processing crab and if it goes the way that "they" want it to go, there will never be any other processors, ever, unless a company buys the right to process that crab. Currently the Gulf of Alaska is the ground fish fishery, in the Homer area it is Pacific Cod. Any other drag fisheries or long line fisheries that are ground fished in the central gulf are being scrutinized for rationalization. Mr. Lane asked the Council to bear with him while he tries to explain this rationalization:

The IFQ program for halibut and black cod gave the catching right of the halibut to fisherman to market as they see fit on the timeline of the opening, which extended the openings to over eight months at the time. What happened was that a lot of the halibut was delivered to Homer. Homer became the number one halibut buying port in the State of Alaska, primarily due to road system access. The Homer Fish Dock is the only really open access buying station arrangement in the state and the best prices are in Homer. A lot of halibut came from the Kodiak area. The Kodiak processors, primarily, did not like their halibut purchasing poundage dropping drastically, and saw the opportunity of rationalization in the central gulf and Berring Sea as a way to provide IFQ or some other quota program in the gulf for Grey Cod. These processors, who have a lot of political clout, want to tie harvesting rights to "those fish". Therefore, in the future "those fish" would not be delivered to Homer even if the higher price is in Homer, because the fish are tied to where the processor is processing and where the processor wants the fish to be delivered.

He stated that his primary concern and what he wants the Council to consider is that if the processors get the processing rights the fisherman can not go to another processor and negotiate another price.

He emphasized that Homer does not have a processor, Homer's processor burned down. Homer only has small processors, there would be very little opportunity to have a major processor come to Homer even though Homer is on the road system. He noted that fishing is not one fishery, it is halibut, salmon, herring and all of these things tied together. As fishermen depend on being able to do three or four different things, so do processors. If the processor already has a plant somewhere else and he can make the fishermen deliver to him where he says and for the price he says, what would be his motivation to come to Homer to process? If a new quota program or limited access program were to pass, with strong participation of processor quota shares, it will involve some very long term impacts to the Homer area.

Mayor Cushing asked the City Clerk to note for the record that Honorary Port/Harbor Commission Member Edens and Library Advisory Board Member Haines are both present in the audience.

Alan Parks, representing the Alaska Marine Conservation Council (AMCC), reported that the AMCC is a membership organization with about 800 members statewide and is board driven with a board of 14 members from nine coastal communities throughout the state. He advised that the AMCC fully supports Resolution 02-06 and thanked Councilmember Yourkowski for bringing this forward. He requested the Council to support and pass this Resolution unanimously. He commented on elements of the Resolution, conservation goals, rationalization programs and allocation of fishery resources to processors. When discussing conservation goals within rationalization programs there are a lot of assumptions made about the conservation outcomes of a program. Therefore, in most privatizing programs of resources there are very few mechanisms to go back and address the unforseen consequences environmentally, if the conservation goals are not met. Very seldom is there a mechanism to go back and change an adverse social economic outcome of the program. Mr. Parks voiced support of the whereas clauses that address strong conservation goals and mechanisms to change, independent review and by catch reduction are all good elements. He suggested that these whereas clauses could be condensed to be a little stronger. He offered his opinion that the biggest thing is the processor allocation of the resource. Examples of what is happening right now in the fisheries and the ownership of the resource by corporations and processors:

The American Fisheries Act gave rights to specific processors. In communities out west, such as King Cove having the processor Peter Pan and Sand Point having the processor Triton, these processors own a portion of one of the largest fisheries in the world, the Pollock Fishery in the Berring Sea. The Pollock Fishery was privatized through the American Fisheries Act.

Here is what can happen:

If a processor is an owner of one of richest fisheries in the world, lives in a coastal community, has a plant in a coastal community in Alaska such as King Cove or Sand Point. Then that processor can offer a price for sockeye salmon that is $0.30 per pound, knowing that the fishermen will probably go on strike since this is not a very good price. The processor then decides to schedule the pollock deliveries during the strike. When the processor owns a portion of the largest fishery in the world and then schedules pollock deliveries every other day, the controlling effects of the American Fisheries Act and the ability of the independent salmon fishermen to negotiate fair prices is non existent. According to Mr. Parks, the American Fisheries Act has many "side boards" such as this situation.

Mr. Parks stated that this is a bad deal for the independent fisherman. He emphasized that this really does get down to economics and the controlling effects of processors. He expressed deep concern about what will happen if processors get the rights to the resources, which will result in conservation goals and sustainable management becoming moot and it will have a detrimental effect on a broad scope of participants and the amount of participants. He concluded by stating that if processor quota share happens in the Berring Sea a precedent will be set for a fold over of what processors want in the Gulf of Alaska and urged the Council to support this resolution, because the resources belong to the public.

Findlay Abbott voiced objection to Resolution 02-04, the design build agreement for the Ocean Drive Loop Bluff Erosion Control project. He reported that he bought his lot ten years ago, had 110 feet from the lot line along Ocean Drive Loop to the cliff. He built as close to the road as he could, right up to the twenty foot set back, after that the cliff advanced 75 feet north and now his building hangs over the edge. He stated that he, is of course, worried that it might fall over the edge, so he should be the one most thankful for any sort of solution. He voiced his fear that the proposed plan may force him to move his building and abandon the land. He will owe $45,000 for a tiny lot that he already paid for once, will be liable for repairs to the whole sea wall, including the portions that stick further out into the ocean that are more likely to be damaged. If the sea wall fails the property owners will still owe the money. For the first three months' payment he could hire a crane to move his building to the Ocean and float it away. Mr. Abbott commented that this has been a somewhat irregular planning process and, on the idea that the City is not an owner, the public has been spared the inconvenience of public hearings, notifications to parties of meetings and progress reports or even of taking minutes at those meetings. It is unclear how some of the decisions were made. He advised the Council that at the first meeting with the engineer there were three alternatives presented and he spoke in favor of the modified version of the rip rap seawall. It was suggested to him that he was too late and the decision had already been made in favor of the composite fiberglass sea wall. He noted that he went ahead and refined his plan and wrote it into a formal report with back ground materials and future options and sent copies to his neighbors, placed copies with the City Clerk, and gave copies of his worksheets and reports to the Public Works Department. He added that he even completed and submitted the coastal project questionnaire to the state to not delay the project. Tonight the Council is asked to determine how to spend the property owners' money, as if the property owners are in complete consensus and there is only one viable solution. He voiced his doubt that the Council was given any of his suggestions, writings or drawings in their packet. He objected to the use of the fiberglass for the seawall and voiced concern regarding the stability of this type of seawall against the wave action here in Homer and its ability to withstand high tide, mud, ice and freezing. He pointed out that this composite fiberglass type of a seawall has only be used for inland harbors and inland waterways in Florida and Texas. This composite sheet piling is no thicker than steel sheet piling and is obviously weaker and more subject to abrasion and cracking than steel. Steel sheet piling was used once on the Homer Spit Road, it failed; thereafter, only armor rock was used and most of the armor rock on the Spit Road is stable. Mr. Abbott voiced his opinion that the engineer has designed this project under fairly idea conditions, failing to fully appreciate the added height of a storm driven tide, the intensity of the waves and the effects of mud and ice. The integrity of the wall is contingent upon the compaction and drainage of the material behind it. He offered the following "likely scenario":

Mr. Abbott stated that this may create a situation where the deadmen have to be dug back up and reset to avoid a catastrophic failure. He noted that his proposal is to spend most of the money on large armor rock. He reported that according to the best information he could obtain a piece of armor rock five feet in diameter weighs about eight tons and would cost about $500. Therefore, for about $10,000 he could have a solid row of large rock on his hundred feet of frontage. He suggested that placing armor rock near the top of the beach may be all that is needed to stabilize his lot. Then another row of armor rock could be placed on top, followed by a third row and for $30,000 he would have a ten foot high wall of solid rock. He voiced his opinion that the armor rock wall seems like a great investment and he would be happy to pay for it, adding that 500 pounds of large armor rock in front of his land would be like money in the bank. However, a vertical wall of fiber glass sheet piling would be like a plastic credit card that could stop working at any time and be worthless. He urged the Council to please reject Resolution 02-04, so that the project could move forward to a rapid solution that is not so risky. He advised the Council that there are other issues that he will not take their time to discuss in detail:

People falling off of it.

Boat that loses power and washes against the seawall. It would be terrible for the boat and the person in the boat, who would not be able to get to safety. The boat would keep banging against the wall as it worked along the wall.

Danger of beach walkers from the Spit, getting trapped by the tide with no way to get away.

Michel Brooks, thanked Councilmember Yourkowski for bringing forward Resolution 02-06. This resolution addresses an issue that will very soon become larger than life in the City of Homer. This is an issue that will impact the economy of Homer to a huge extent. The proving ground, or pilot program is the Berring Sea Crab Rationalization Plan. One of the buzz words is the "two pie system", which means that a fisherman and a processor each get one quota share and when it is time for the fisherman to sell his catch he has to sell to the processor with the processing quota share. How does this control the economy? The processor can pay anything he wants to the fisherman, because the fisherman has no where else to go. The fisherman's quota share is attached to historical landings. He reiterated Don Lane's and Alan Parks' comments regarding processors. He noted that for any fresh catches Homer and Seward were the ports of choice, with Homer a little bit better situated. This allowed an economy development that was market driven. Fresh fish sales are determined two and three months in advance. Newspaper ads are cut sometimes six weeks in advance. Therefore, these fish deliveries cannot be done on a hit and miss delivery system. He relayed that when Homer began to grow Sealand changed its routing on the container ships that historically stopped in Kodiak and Dutch Harbor, to Dutch Harbor, Kodiak and Seattle. This change was to counter Homer's ability to put fish on the road in trucks with a sixty hour delivery to the Seattle metropolitan area. The trucking is much more effective out of Homer, trucks delivered to the Homer area fresh produce and et cetera and transported the fish back to Seattle. Under this proposed system those fish would not come to Homer, nor would the dollars that this community has enjoyed. He urged the Council to be aware of this huge economic impact. Mr. Brooks commented about the processors' term, "stranded capital", which refers to when the processors built their plants, when fisheries were much larger and more robust, seasons longer and labor forces greater. Now these processors have stranded capital due to down turns in the economy, diminished bio masses, increasing regulations, and the shortened seasons. Homer does not have any physically stranded capital any more, but does have some very enterprising entrepreneurial people who have made viable small operations within this community, using community resources. Under the stranded capital principle a plant in Kenai or Seward with processor quota shares will take the fish to Kenai or Seward, will use those local resources and avoid, through good business principles, spending any more than the smallest amount of money in Homer. Looking at the Homer revenue base, this boils down to an over the dock wharfage fee for a product delivered and maybe once in a while fuel will be purchased. However, fuel is cheaper out of town and there is a very minimal dock presence in the form of a dock unloading station. Therefore, the City of Homer, in that aspect, would lose a lot of revenue. He advised that he consults for Seafood Industry and that he travels a lot. He commented that Newfoundland has had rationalization for a number of years. St. Anthony, a small town in Newfoundland, before rationalization had four separate processing entities. In Canada there is a law that no single company may own more than 15% of the processing capacity within the country. What happened, through unproven collusion and possible market manipulation, all the mom and pop operations and local community operations were pretty much forced out of business and now St. Anthony has one processing company that dictates when the fishermen fish, the catch, the delivery times and the price. When one walks around Newfoundland one sees communities where the young people have left since there are no opportunities to enter the fisheries and grinding poverty with the money leaving the community and going to corporate headquarters. He voiced his concern that this could happen to Homer if processor quota shares are allowed. He urged the Council to deliberate carefully and support Resolution 02-06.

Paul Hueper commented in support of Resolution 02-04 and respectfully disagreed with his neighbor on quite a few different points regarding the award of the design build for the Ocean Drive Loop Bluff Erosion Control project. Mr. Hueper advised that the property owners/residents, the City and the Public Works Director spent a lot of time trying to pick the most qualified design-build team they could possibly find to put in the seawall. He reported that there were about a half a dozen companies that submitted proposals and that the group chose Arvind Phukan, of Phukan Engineering out of Anchorage, for various reasons. He noted that Phukan has a perfect record. He agreed that no one wants to pay for a wall that is going to collapse. Phukan has engineered a wall that is meant to stand up to two times whatever the engineering requirements were, to assure that it will be here fifty years from now. No one wants to see a failure such as what happened on the Homer Spit. A lot of time is being spent to build a quality wall. Mr. Hueper stated that he would love to have a twenty foot seawall that would protect the whole bank, however, this is not affordable. He commented that Doug Jones, the wave analysis expert, has spent a lot of time looking at the wave action and how it will affect the cliff line. He advised that Ray Clapp, Coast Range Construction, has a stellar record. He emphasized that the best possible team has been assembled. He also commented on Resolution 02-05, the use of the dredge spoils, and asked that the City consider authorizing the use of the dredge spoils, adding the historical fact that much of the dredge spoils have come from the Ocean Drive Loop bluff. He stated that it would be nice to reclaim some of the materials that nature has taken away from the bluff line. Mr. Hueper advised that the reason for the "two times the engineering requirement" is because the goal is success and not failure, which has increased the construction costs. The construction costs are right at the "make it, break it" point, being very close to the amount the property owners agreed upon and so the property owners would be very grateful if the City could help the project by authorizing the use of the dredge spoils.

Don McNamara, Ocean Drive Loop property owner/resident, stated that Paul Hueper was right on the money with what he has in mind. He stated that the City helps all the other LIDs out, citing the sewer LIDS as an example, with 25% and encouraged the Council to think about this when they are considering the price for the spit spoils [dredge spoils].

Mayor Cushing called for a recess at 8:15 p.m. reconvening the meeting at 8:31 p.m.

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.)

Item E. was moved to Resolutions as Item A.



A. Homer City Council regular meeting unapproved minutes of December 10, 2001. Recommend approval. With substitute pages 10 and 21.

B. Resolution 02-01, Of the City Council of Homer, Alaska Confirming the Appointment of Mark Robl as the Acting City Manager for Calendar Year 2002. City Manager. Recommend adoption.

C. Resolution 02-02, Of the Homer City Council Confirming the Appointment of Dean Baugh as Treasurer for Calendar Year 2002. City Manager. Recommend adoption.

D. Resolution 02-03, Of the City Council of Homer, Alaska Approving the Interim Agreement with the Kenai Peninsula Borough to Provide Fire and EMS and Authorizing the City Manager to Execute the Appropriate Documents. (Fiscal Note: Revenue Acct. 100.4602.03, $119,829.00.)City Manager. Recommend adoption.

E. Resolution 02-04, Of the City Council of Homer, Alaska Authorizing the Execution of the Standard Form of Design-Build Agreement and General Conditions Between Owner and Design-Builder, the Firms of Phukan, Inc. and Coast Range Construction, on Behalf of the Property Owners within the Ocean Drive Loop Bluff Erosion Control Project, upon Resolution of Cost Issues. (Fiscal Note: Acct. 151-741, Bonding is for $1,039,875.00) City Manager. Recommend adoption. With substitute page 33.

Memorandum from Public Works attached as backup.

This Item was placed under Resolutions as item A.

F. Memorandum 02-01, from City Clerk, Re: Liquor License Renewals for the Fresh Sourdough Express, Café Cups, Save-U-More, Duggan's Waterfront Bar, the Salty Dawg Saloon and the Bayside Lounge. Recommend voice approval and non objection.

G. Memorandum 02-02, from City Clerk, Re: Request for Executive Session for the Purpose of Confidential Attorney Client Communications about a Pending Legal Matter, Annexation, to include Evaluation, Strategy and Possible Actions. Recommend approval and conduct under New Business as Item A.

MARQUARDT/CUE - MOVED FOR THE ADOPTION/APPROVAL OF THE RECOMMENDATIONS OF THE CONSENT AGENDA.

VOTE:(Items A - D. and F and G.) YES: FENSKE, LADD, YOURKOWSKI, MARQUARDT, KRANICH, CUE.

Motion carried.

VISITORS

A. Habitat for Humanities, New Role in Homer. Dan Boone.

Dan Boone gave an overview of Habitat for Humanities and the goal and role in Homer. The plan and intent is to build at least one home in the Homer area this construction season. He advised that the application scoring criteria is being evaluated. There was a question and answer period with the Council and Mr. Boone provided the Council with some more information regarding the program. Further information is included in the packet on pages 73 - 76.

ANNOUNCEMENTS/ PRESENTATIONS/ BOROUGH REPORT/ COMMISSION REPORTS

A. Councilmember Fenske Travel Report

Suzanne Haines, Library Advisory Board, reported to the Council about the campaign for a new library, asked for a future worksession with the Council and elucidated the thoughts about two basic sites for a 17,000 square foot structure; the old intermediate school adjacent to the KBCC UAA West Campus and the City's property East of Main Street by the old KBBI site. There was a short question and answer period wherein the use of volunteers was mentioned.

Councilmember Fenske briefly commented on his report, adding that the AML Conference sessions were very good.

Councilmember Kranich concurred with Councilmember Fenske.

Mayor Cushing briefly reported on the selection process for the NERR Citizen's Advisory Council, adding that he is one of six members on the selection panel. He advised the Council that Governor Knowles reappointed him to the Coastal Policy Council.

PUBLIC HEARING(S)

A. Thompson Drive Sewer Improvement

There was no public testimony.

ORDINANCE(S)

CITY MANAGER'S REPORT

A. City Manager's Report (Advisement of new hire, commendations and Ice/Crane Time.)

B. Records Report.

C. Game Permit Report.

D. Bid Report.

City Manager Drathman read commendations for Paul Morton, HPD, and Bryan Hawkins, P/H, into the record and noted the new hire of Police Officers Paul Meyer and Stacey Luck.

COMMITTEE REPORT

PENDING BUSINESS

NEW BUSINESS

A. Executive Session for the Purpose of Confidential Attorney Client Communications about a Pending Legal Matter, Annexation, to include Evaluation, Strategy and Possible Actions.

Mayor Cushing recessed the Regular Meeting to Executive Session at 9:14 p.m and reconvened the Regular Meeting at 10:41 p.m. This Executive Session was held with the City Attorney.

MARQUARDT/KRANICH - MOVED TO DIRECT THE CITY MANAGER AND THE CITY ATTORNEY TO DRAFT A LETTER OPPOSING PROPOSED BOROUGH ORDINANCE 2001-48 AND THE PROPOSED RESOLUTION OPPOSING HOMER ANNEXATION.

VOTE: YES: CUE, FENSKE, LADD, YOURKOWSKI, MARQUARDT, KRANICH.

Motion carried.

B. Memorandum 02-03, from City Clerk, Re: Brennan Appeal of Denial of Records Request, with an Executive Session as needed.

FENSKE/KRANICH - MOVED TO UPHOLD THE CITY MANAGER'S DECISION.

City Attorney Tans relayed the essence of his letter to the Council:

The documents were withheld on the basis of a provision in the City Code that says information of users of City services should not be disclosed, if the release would constitute an unwarranted invasion of privacy. When this appeal was filed he took a close/hard look at that provision in the Code, noting that it has been the traditional interpretation not to release information of this class. This is also a provision found in Municipal Codes of other municipalities, adding that he cites three of these in his letter. The question raised by the appeal is whether this constitutes an unwarranted invasion of privacy, that's the condition on the Code provision. There is a court opinion, State Vs. Chryst, that concludes that, in that case it was the names and addresses of public utility customers, there is not an expectation of privacy in the names and addresses. He also cited an Attorney General opinion that says that the names and addresses of owners of boats that are registered with the Department of Administration are public information. There is another statutory provision concerning, in general, state records of what information is personal/private information in state records and it too excludes names and addresses.

City Attorney Tans advised that the conclusion he came to is that it does not appear to be that kind of expectation of privacy that the society here in Alaska, according to state law, is prepared to recognize as reasonable, strictly the names and addresses of the slip holders in the harbor. He stated that the opinion he is giving the Council tonight extends no further than that and if there are other questions of this nature that come up, perhaps different expectations of privacy might attach to different kinds of information other than strictly the names and addresses of the slip holder lessees in the harbor. He stated that his recommendation is that these records be considered public.

There was some discussion. Council suggested that the slip holders be notified that this information is public.

YOURKOWSKI/MARQUARDT - MOVED TO AMEND THE MOTION TO CHANGE THE WORD UPHOLD TO OVERTURN THE CITY MANAGER'S DECISION.

Council stated that they did not want any other information released and noted that the form for signing up for a boat slip in the harbor contains a lot of sensitive and private information.

City Manager Drathman advised that the City Attorney recommends that the City have a notation on the boat slip user forms that this information is subject to public inspection.

VOTE:(primary amendment one) YES: MARQUARDT, KRANICH, CUE, FENSKE, YOURKOWSKI.

NO: LADD.

Motion carried.

VOTE:(main amended motion) YES: CUE, FENSKE, YOURKOWSKI, MARQUARDT.

NO: KRANICH, LADD.

Motion carried.

RESOLUTIONS

A. Consent Agenda Item. E. Resolution 02-04, Of the City Council of Homer, AlaskaAuthorizing the Execution of the Standard Form of Design-Build Agreement and General Conditions Between Owner and Design-Builder, the Firms of Phukan, Inc. and Coast Range Construction, on Behalf of the Property Owners within the Ocean Drive Loop Bluff Erosion Control Project, upon Resolution of Cost Issues. (Fiscal Note: Acct. 151-741, Bonding is for $1,039,875.00) City Manager. Recommend adoption. With substitute page 33.

Memorandum from Public Works attached as backup.

KRANICH/CUE - MOVED FOR THE ADOPTION OF RESOLUTION 02-04 BY READING OF TITLE.

Council voiced consensus that the City Manager address certain conditions. The conditions applicable to the contractor are to be included in the contract/agreement for the design build. The conditions that are applicable to the property owners are to be included in some type of agreement with the property owners in the Ocean Drive Loop Bluff Erosion Control Project assessment district:

1. Insurance for the structure for at least as long as the term of the bonds.

2. Contract should address wave energy dispersion. No project impact to neighboring property owners and the Mariner Park berm area. Require a commitment from Phukan that this will not occur and that Phukan will be held responsible.

3. Property owners assume all the risk associated with this project, if this project fails. Make sure that the property owners understand that they are assuming all risk of the structure and that the City is not going to maintain this project.

4. Phukan address the load bearing capacity of the slope. For example: If someone chose to build on the slope transitioning between the level of the wall to the level of the bluff. Restrictions on what is allowed/permitted to go in that area.

5. Allow the natural transport of sediments on the west side of the Spit in an uninterrupted fashion. Comprehensive Plan. (Proponents of bulk heads, break waters etcetera shall demonstrate that their project will not adversely disrupt this sediment transport.)

Bonding and funding were discussed.

The City Manager will get back to the Council about revenue bonding.

City Attorney Tans noted that the contractor cannot be bound by the conditions that apply to the property owners.

VOTE: YES: YOURKOWSKI, MARQUARDT, KRANICH, CUE, FENSKE, LADD.

Motion carried.

A. B. Resolution 02-05, Of the City Council of Homer, Alaska Authorizing the use of Homer Spit Dredge Spoils for the Ocean Drive Loop Bluff Erosion Control Project in an Amount not to Exceed Five Dollars per Cubic Yard. (Fiscal Note: Acct: 151-741 is the Ocean Drive Loop Bluff Erosion Control Project - the cost of the dredge spoils usages will be funded from this account.)City Manager.

Memorandum from Public Works as backup.

Mayor Cushing issued notice of conflict interest, having a client who has expressed an interest in purchasing some of the Dredge Spoils. Excusing himself from the Council table he handed the gavel to Mayor Pro Tem Marquardt at 11:21 p.m.

KRANICH/FENSKE - MOVED FOR THE ADOPTION OF RESOLUTION 02-05 BY READING OF TITLE ONLY.

There was lengthy discussion.

LADD/KRANICH - MOVED TO SUSPEND THE RULES TO CONTINUE PAST MIDNIGHT TO FINISH TONIGHT'S AGENDA.

VOTE:(suspension of rules) YES: CUE, FENSKE, LADD, YOURKOWSKI, MARQUARDT, KRANICH.

Motion carried.

Mayor Pro Tem Marquardt called for a recess at 11:56 p.m., reconvening the meeting at 12:03 a.m.



FENSKE/YOURKOWSKI - MOVED THAT THE CITY MAKE THIS 20,000 YARDS AVAILABLE TO THOSE PROPERTY OWNERS FOR A DOLLAR PER YARD, OR WHATEVER IS IN THAT PILE OUT THERE.

Restated by the Mayor Pro Tem: To sell the dredge spoils in question for a dollar per yard.

City Manager Drathman reiterated Mr. McNamara's comment regarding the City contributing 25% to other LIDS.

KRANICH/ - MOVED TO AMEND THE QUANTITY OF DREDGE SPOILS FOR SALE LIMITED TO QUANTITY NECESSARY TO COMPLETE THE OCEAN DRIVE LOOP EROSION CONTROL PROJECT.

Motion died for lack of a second.

The maker of the motion was asked to clarify the intent of his motion: "It is the intent of this amendment to use no more than 20,000 cubic yards as stated that is available in the pile on the Spit at this time for the project."

Council discussed approaching the owners, before this project is finalized, about establishing a ten or twelve foot pedestrian easement across the top of the Seawall for a coastal trail/pedestrian walking trail or a bike path, in exchange for the lower price on the dredge spoils.

VOTE:(primary amendment) YES: KRANICH, CUE, FENSKE, LADD, YOURKOWSKI, MARQUARDT.

Motion carried.

VOTE:(main amended motion) YES: LADD, YOURKOWSKI, MARQUARDT, KRANICH, CUE, FENSKE.

Motion carried.

Mayor Cushing returned to the table

B.C. Resolution 02-06, Of the City Council of Homer, Alaska Urging the North Pacific Fishery Management Council, the State of Alaska and the United States Congress, to Require Strong Standards for Conservation and Community Health Before Any New Individual Quota Program or Other Limited Access Programs are Adopted in our Fisheries Resources in Alaska. Yourkowski.

YOURKOWSKI/CUE - MOVED FOR THE ADOPTION OF RESOLUTION 02-06 BY READING OF TITLE ONLY.

Councilmember Yourkowski thanked the public for their great testimony, that the testimony came from individuals that are well educated regarding this matter and that they brought up some points that would be valuable to include within this Resolution.



YOURKOWSKI/CUE - MOVED TO POSTPONED TO THE NEXT REGULAR MEETING. (January 28, 2002)

Councilmember Fenske stated that the intent of this Resolution is very important for this area and anything that makes it stronger is a plus.

Councilmember Kranich voiced his opinion that the economic impact to the communities, if this resource allocation awards the resources and quota shares to the processors, needs to be stressed within this Resolution.

Mayor Cushing interjected that he has a partial rewrite prepared.

VOTE:(postponement) YES: LADD, YOURKOWSKI, MARQUARDT, KRANICH, CUE, FENSKE.

Motion carried.

COMMENTS OF THE AUDIENCE

Findlay Abbott, regarding the Ocean Drive Loop Bluff Erosion Control Project, stated that the decision the Council made tonight is going to have a big impact on his life. He advised that his plan was all built around having a coastal trail and the first phase of his plan was to buy big armor rock and put it at the top of the beach and to try to get the City involved in a larger seawall with a coastal trail. He stated that some of the neighbors don't like the idea of a coastal trail, the vertical wall was on their minds to block out the public, but he wanted to involve the public and have a future coastal trail. There is no room for a trail, there is no room to expand outward like there would be with a rip rap seawall. He explained the elevations further:

When the topographic survey was made the gravel level was quite high and now it is about half. What really matters is not the level of the transient gravel, but the level of the hard pan, which is where the seawall toe is really at about 13 or 14 feet at the lower points. There is no dispute about that, it is just whether the count is from the top of the gravel. There is no integrity of that gravel, therefore, it will be ten feet down below. There are some real questions regarding the elevations.

Mr. Abbott voiced his opinion that the wave action will impact/affect other properties, pointing out that a vertical seawall increases the lateral speed of the currents and "will suck from one end". Vince Tillion's gabion seawall will probably be the first to take damage from this project and at the other end there will be an increase velocity that could damage the Spit. Originally the engineer said that there had to be a row of armor rock at the toe of the seawall, now, due to cost, it is decided that this is not needed. The plans are very sketchy and the whole thing is based on the opinion of one engineer. When this engineer was chosen the others were rejected; Tryck, Nyman and Hayes, Swalling, and the really big time professional people. It is unknown if these big time professionals think this design would work. Mr. Abbott stated that if this were really a City project he does not believe the City would mess around with any plastic seawall that might require maintenance every year. So it is because it is the property owner's money that the City has decided this is okay. Of course the City has easements, where the road comes to the guard rail there is a 60 foot public easement and down the way there is another 30 foot public easement. The City is not paying its share of the seawall and is going to enjoy some of the benefits for which the property owners are paying. He emphasized that this project is over budget now and needs to get the dredge spoils free. According to Mr. Abbott the wall is pushed right up to the edge or his building, so he really does not gain anything. He agreed with the idea of getting insurance, which would sort of solve some of his questions; however, he wondered who would be paying for the insurance - the property owners, the project that is already over budget, or additional fees to the monthly fee. The insurance company knows this project could fail so the insurance will cost a lot. Mr. Abbott offered to try and keep an open mind and watch how this all falls together and see if he becomes more confident in this project. He stated that he expects his lot will be worth half of what he owes on it and that he will not be able to pay for it. He commented that the most eroded lots; his, his sister's and the two lots to the east of them; come out the worst on this project, because they are not getting anything back, are just being penalized for the massive erosion over the past ten years and the lots are not going to be big enough to be worth anything. He emphasized that there is not going to be enough room to put a decent house on these lots, at all, only a couple of shacks. In his opinion, no one will ever pay $45,000, plus assuming all of these obligations. The two lots to the east of his, the Barrs, they have 260 feet and objected from the onset and their lots are appraised at $8,000 each. He asked if the Council thought the Barrs would pay $120,000 now to keep those lots? He said that the Barrs would not pay that fee to keep those lots, nor will his sister. He pointed out that there are these four lots, right in the middle of this project that are probably going to default right from the onset. Councilmember Ladd hit it right on the button when he stated that the City is much more involved in this than they think. The City is probably, right from the beginning, going to be taking over one fifth of the obligations on this project. The City is going to become the owner of land on this project and when others find that the land is worth less than they owe, they may do the same. He stated that he feels it could be shown, perhaps, that the Council was not presented with all of the facts, such as his plan, and did not consider that there might be another alternative that might be more economically feasible such as a limited armor rock thing. Mr. Abbott voiced his belief that some of the property owners that are going to default can also argue that they might come back to the City to be recompensated for their loss. He told the Council that his lot is going to be a total loss and that he hopes to take the building away and save it. He informed the Council that he will walk away from the land, because he is not going to be pay $45,000 for a lot that is worth $25,000. He advised the Council that he may then feel that he can come after the City for the loss, because of the decision the City has made in this case. Something that is totally a guinea pig test, has never been tried in a situation like this and the engineer has made assumptions about the wave size and the crests that are completely inadequate for this project. He concluded by saying that "we'll" see what will happen, that he is not very happy about it, thanked the Council, adding that he sure wished the Council had taken into account his suggestions on this project and put the money into a bunch of great big rock.

Pat Evarts voiced her appreciation for all that the Council does, adding that she knows they spend a lot of time and that it is a thankless job. She distributed a map of the Pioneer/Svedlund/E. Danview Avenue area for the Council. She stated that she wants to make her comments and concerns a matter of public record, and apprized the Council of a dangerous situation that exists on Svedlund. The Paul Banks school bus, #62, turns north onto Svedlund off of Pioneer Avenue and the West Homer Elementary school bus, #70, turns onto East Danview Avenue off of Main Street both traveling toward the Svedlund Circle cul-de-sac. To the western side of the cul-de-sac entrance, adjacent to a vacant lot, children are standing waiting for one of the buses. Mrs. Evarts emphasized that there are unleased dogs and moose in that area creating a dangerous situation for the children as well as dangerous for street traffic. She noted that children that catch the West Homer Elementary school bus have to cross the roadway. The last street light in this immediate area is on Svedlund across from the Coast Guard Housing, White Alder Court, quite a distance from the very dark bus stop. She relayed having discussed this with Public Works Department employee Jan Jonker and noted his helpfulness and that he was very informative and had advised that the street pole lights are done through a partnership with the City and HEA. She urged the City to place a street light at this location, the west side of the Svedlund Circle cul-de-sac on the East Danview Avenue portion on the north side of the road, where the children wait for the buses. She noted that some of the people in the cul-de-sac, such as Mr. Barr, have some outside lighting, but this street area is still very dark and a street light is very much needed. She said that this situation is very worrisome to her especially when she remembers Ashley Logan and wondered whose has the liability. She advised Council of conversations with the School District, Laidlaw Busing and HEA. Mr. Fielding of Laidlaw buses had suggested the possibility of changing the bus route, if this is dangerous and a street light cannot be placed. Ms. Evarts acknowledged that this would be a budgetary impact with the pole costing between $1,200 and $1,500, and then the City would assume the cost of the electricity. She asked the Council/City to please find the money in the budget to install this much needed street light. In response to the City Manager's inquiry she clarified that she suggests the street light go where she has a black dot on the map depicting where the children stand waiting for the buses; on the west side of the Svedlund cul-de-sac on the East Danview Avenue portion on the north side of the road.

COMMENTS OF THE CITY ATTORNEY

City Attorney Tans had no comment.

COMMENTS OF THE CITY CLERK

City Clerk Calhoun had no comment.

COMMENTS OF THE CITY MANAGER

City Manager Drathman commented about the Griffin letter to the Editor in the Homer News about having to wait for City water and sewer. He advised that Mr. Griffin is in the Harrington Heights Water and Sewer Improvement District and that he should have water and sewer this summer.

COMMENTS OF THE MAYOR

Mayor Cushing had no comment.

COMMENTS OF THE CITY COUNCIL

Councilmember Marquardt commented about the Ocean Drive Loop Bluff Erosion Control project and Findlay Abbott's comments and proposals. He noted that he has to do what is best for the majority. He advised that he had received some information from Mike Gordon and will get this to the Council. Mr. Gordon has a new concept for a property swap adjacent to Karen Hornaday Park. He stated that Mr. Gordon has done a revetment on the road that he built and has done a lot of work to stabilize the whole area. Mr. Marquardt asked for feed back and review of this new concept by the Council to see if this is something the Council would like to pursue or modify.

Councilmember Kranich stated that he also reviewed Findlay Abbott's proposals and prefers the use of armor rock; however, he has to fall back on the information provided by the Public Works Director regarding the cost of rock versus alternative methods. He voiced his agreement with Mr. Abbott that a rock revetment wall is far more aesthetically pleasing than any type of a sheet pile wall.

Councilmember Yourkowski asked the City Manager if those property owners do default, such as Findlay Abbott, would that property go back to the Borough.

The City Manager will review the matter and get back to the Council as to who would get the ownership of the property, noting that the Borough would not receive the property, it may be the City or the bond holder.

Councilmember Ladd inquired if a person defaults on property does the project cost fall back on the remaining people in the assessment district.

City Attorney Tans will review that matter, get with the City Manager and get back to the Council some good information.

Councilmember Ladd reminded everyone that there is a worksession on the City wide survey prior to the next Regular meeting on the 28th and asked for input, interest or ideas. He encouraged everyone to get in touch with any Councilmember.

ADJOURNMENT

There being no further business to come before the Council the meeting was adjourned at 12:47 a.m. The next regular meeting is scheduled for January 28, 2002 at 7:30 p.m. The Council's Committee of the Whole is canceled and there will be a worksession instead regarding the City Wide Survey questions at 4 p.m. on January 28, 2002.











____________________________________

MARY L. CALHOUN, CMC, CITY CLERK



Approved: _____________________