Session 05-03, a Regular Meeting of the Homer City Council was called to order at 7:05 p.m. by Mayor Pro Tempore Michael Yourkowski at the Homer City Hall Council Chambers located at 491 E Pioneer Avenue, Homer, Alaska, and opened with the Pledge of Allegiance.

PRESENT: COUNCILMEMBERS: BECK, McLAY, NOVAK, STARK, WYTHE, YOURKOWSKI.

STAFF: CITY MANAGER WREDE

CITY CLERK CALHOUN

LIBRARY DIRECTOR HILL

PORT/HARBOR DIRECTOR DEAN

PUBLIC WORKS DIRECTOR MEYER

ADMINISTRATIVE ASSISTANT HOLEN

ABSENT: MAYOR: HORNADAY (excused)

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

The Council met as a Committee of the Whole from 4:05 to 5:30 p.m. and discussed the LID Process and regular agenda items. The Council conducted a Special Meeting from 5:30 to 7:03 p.m. regarding an Executive Session. Both meetings were conducted in the Homer City Hall Council Chambers. The Executive Session was held in the Conference Room.

AGENDA APPROVAL

(Addition of items to or removing items from the agenda will be by unanimous consent of the Council. HCC 1.24.040.)

Additions, Substitutions: Consent Agenda - Ordinance 05-04, Substitute page 2. correcting a typo and Parcel Maps for East End Road Water and Sewer, Resolution 05-07. Public Hearing - Written testimony on Ordinances 05-02 and 05-03. New Business - Additional backup from Alaska Statute 29 for Memorandum 05-15. Resolutions - Substitute Resolutions 05-14(S) and 05-15(S), with Memorandum 05-17 as backup, plus attachments.

BECK/NOVAK - MOVED TO APPROVE THE AGENDA CHANGES AND PACKET ADDITIONS.

There were no comments.

VOTE: YES: NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

PUBLIC COMMENTS UPON MATTERS ALREADY ON THE AGENDA

Public Comments any matter on the agenda except Public Hearing items: Ordinances 05-01, Landscaping Requirements, CBD, GCI and CUP; Ordinance 05-02, To Increase the Allowable Area of Buildings Used for Retail and Wholesale Business to 66,000 Square Feet in the CBD, GCI and GC2 Districts; and Ordinance 05-03, Special Election for March 22nd for Approving a One Percent Increase in the City Sales Tax, with .25 Percent Dedicated to a Community Enhancement Fund.

Frank Vondersaar, lives in the City, voiced strong support of the two Resolutions (1)on the new library, one for approving the budget and plans for the new library and the other is for a $1.7 million loan. He urged the Council to pass both Resolutions.

Nancy Lord, City resident, spoke in favor of the two Library Resolutions and, for the benefit of the public, noted that the City just received the 95% cost estimate today, at the same amount as at the 65% level. She relayed the pleasure at the amount not increasing and that the estimated amount is $5.5 million for the building and site improvements. She mentioned the increase in the cost estimate at the 65% level, because construction/material costs had increased, adding that the plans and fund raising had been adjusted. She noted that full funding is anticipated soon and that it includes the $1.7 million in loan, of which the City residents approved up to $2.2 million. She thanked the Council.

Michael Hawfield, Library Advisory Board Member, joined his Library Advisory Board colleagues and friends on the Council to encourage adoption of the two Library Resolutions. He noted that all have been working very hard and that everyone in the community has been, literally, putting in more than their two cents to make this come about, adding that it has been a wonderful, enthusiastic partnership to bring together the resources to build this extraordinary, new assist for the community. He thanked the Council for all of their support.

Mayor Pro Tempore Yourkowski noted that the Library Supporters all have little stickers on their sweaters and shirts.

Cleo Webb, with the Friends of the Library for almost 25 years, commented that "they" have been working hard for this Library and that she wanted the Council to know that it is not only the citizenry of the City of Homer who are working very hard and putting their funds into this Library. She advised, as treasurer, she is seeing addresses of many from as far away as New Hampshire. Ms. Webb commented that when Sue Mauger did her race there was money pledged from all over the country, voicing her hope that everyone loves libraries. She noted that the people who are working so diligently and so hard do and encouraged the Council to vote yes on these items on the agenda.

Leonard Welles, City resident, commented on the Library Resolutions similar to his past comments. He voiced disagreement with one of the speakers who indicated that everyone is working hard to get these funds done, in that he does not believe this a factual statement based on the last vote wherein yes the library was wanted, but no to the increase in sales tax. He expressed his opinion that this is saying to the Council to find a way within the current tax structure to raise these monies. He noted that in November and December, when the Council got around do doing a budget they did not cut their spending anywhere else so they could get this. He advised that he is not sure on these two Resolutions where the money is coming from to repay that, but does strongly urge that the Council put out to the citizens a tax vote, of some nature, that he hopes they pass.

Ray Kranich, resident of the City, spoke on Item I. of the Consent Agenda to appoint a Convention Center Task Force and hoped that the individuals heard the recent news report in Anchorage, where they are finding that the requirements for Conventions smaller than 30,000 square feet is decreasing. He objected to the renaming of Cowles Way in Resolution 05-08, noting that this street is named after Ralph Cowles, the first Mayor of the City of Homer, who was a partner of CNS Air Service at the Homer Airport for many years with Jim Saling, very active in Municipal Government in the early years and in getting the City organized. Mr. Kranich noted that Ralph Cowles (pronounced - Coals) did live on that street and that he feels that some historical perspective should remain. He commented on Resolution 05-13, Spit Parking Plan, voicing his opinion that there still needs to be some consideration given in those areas for stall holders. He thanked the Council.

Bill Smith, Citizen Bill Smith, commented on Ordinance 05-04 to amend the initiation of Zoning Ordinance amendments, that the only whereas that provides justification talks about the Borough Code, which has no zoning in it except local action zoning which does not resemble community zoning in any respect. He stated that this amendment would enable a single individual to come to the staff and ask them to present an Ordinance, that, in his opinion, the City would have to consider and put through the public hearing process. He voiced his thought that the current code is pretty reasonable and that the amendment would create some real problems, especially if somebody just wanted to keep coming in and putting in amendments to the staff, that would, in his opinion, have to go to before the Planning Commission and the Council. He thanked the Council.

Frank Griswold, City resident, spoke on Ordinance 05-04 that he did not really understand it and that there is one section that sounded like "they" are trying to delete the citizens' right to petition with 50 signatures. He said that he would like to see the citizens' right kept in there one way or another, hoped the Council would put that in there so that the citizens have some opportunity to present an ordinance, but if the Council does not then there seems that there is a part, acknowledging that he he may have misread this, that says an identical Ordinance may not be submitted within nine months, unless by the Planning Commission or City Council, which is superfluous. He expressed his thought that it a good idea to take out that exemption for the Commission and Council, a bad idea to keep reintroducing Ordinances every few months, a waste of the public's and Council's time. He commented on the January 10th minutes, that he had noted that Mayor Hornaday scanned a five page attorney opinion in about ten seconds, the ten second part being omitted as was his statement, following that comment, "that he sensed that the Mayor had not had an opportunity to read the written testimony that he had submitted in the supplemental packet". He stated that he would like that to be in there and that he thinks it is very important if testimony is limited to three minutes and if people are encouraged, instead, to submit written testimony that it gets equal recognition. He thanked the Council.

Mike Barley, lives outside City limits, thanked the Council for the opportunity to speak and spoke in favor of both of the Library Resolutions, especially 05-15, to take out the loan for $1.7 million to finance the New Homer Library. He noted that back in October the same body of City voters, that elected the Council to Office, also voted 63% in favor of the City taking on this debt to finance the construction of the New Library. He asked the Council to carry out the wishes of that majority. He noted that this library comes as a bargain to the City and its tax payers, noting that if there ever is an example of volunteer community involvement bringing in an essential City Service to the community it cannot be better exemplified by the efforts of the Capital Campaign. He noted that over the course of the past two years this campaign has tirelessly raised $3.1 million to date, including $700,000.00 of local money and is expecting another $2 million in federal grants to come in this next month, a total of $5.5 million raised through community fund rasing events and securing grants, some of which are dependent on this commitment from the City. He noted that, in addition to the campaign raising about 75% of the construction costs, the proposed loan is very low interest. He encouraged the Council to pass the proposed City sales tax increase mainly as a way of funding the short falls and many of the other City services and to cover the $100,000.00 needed to make the annual loan payment, a small amount to ask. He emphasized that by the City committing to the loan it will leverage the tax payers money in a way that cannot be accomplished by the City taking on this project alone, and in a very responsible manner. He noted that the returns on this small investment will likely be huge and the new library will finally be able to accommodate its many users, including the children's reading sessions as well as accommodating the needs of others utilizing reference materials and the internet. He stated that the free access to learning materials, especially by children, should be encouraged by the City, because it ultimately comes back. He expressed his belief that the New Library is a humble size, but wisely and beautifully designed and that the new space and increased size will supplement and expand the learning materials of the old library and local schools and will do so in an environment that will attract young readers, thus encouraging them to succeed. He commented that when the early readers finally graduate, if they choose to stay in Homer, or come back, or if they continue on to college, they will be better equipped to obtain jobs or build businesses in this community and help Homer grow. He stated that taking out this loan is simply a wise investment that will give Homer immediate and sustaining returns. He thanked the Council.

RECONSIDERATION

None scheduled.

CONSENT AGENDA

(Items listed below will be enacted by one motion. If separate discussion is desired on an item, that item may be removed from the Consent Agenda and placed on the Regular Meeting Agenda at the request of a Councilmember.)

Councilmember Wythe asked for the removal of Item B. Ordinance 05-04, which was placed under Ordinances, and the removal of Item I. Resolution 05-11, which was placed under Resolutions.

Councilmember Stark asked for the removal of Item J., Resolution 05-12, which was placed under Resolutions.

A. Homer City Council unapproved meeting minutes of January 10, 2005 Regular Meeting. City Clerk. Recommend approval.

B Ordinance 05-04, Of the Homer City Council, Amending Homer City Code Section 21.70.010, Initiation of Zoning Ordinance Amendments. City Clerk. Recommend introduction, forward to Planning Commission for public hearing and input and conduct Public Hearing February 14, 2005 and Second Reading February 28, 2005.

Placed under Ordinances

C. Ordinance 05-05, Of the City Council of Homer, Alaska Accepting and Appropriating a $1.2 Million Grant from the Rasmuson Foundation for the Construction of the New Homer Public Library, Confirming that the City has Raised and Committed the Balance needed to Complete the Project Funding and Authorizing the City Manager to Execute the Appropriate Documents. City Manager. Fiscal Note: Revenue and Expenditure Account No. 151-722 adding $1,200,000.00.Recommend introduction and conduct Public Hearing and Second Reading on February 14, 2005.

D. Resolution 05-05, Of the City Council Amending the City of Homer Fee Schedule, Camping Fees. City Clerk. (Fiscal Note: Undefined Revenue.) Recommend adoption.

E. Resolution 05-06(A)(S), Of the Homer City Council Commenting on Draft Amendment NO. 8 of ADOT & PF 2004-2006 State Transportation Improvement Program - Proposed State Transportation Projects Affecting Homer Residents. Stark. Amended by Council on January 10, 2005. Recommend ratification.

F. Resolution 05-07, Of the City Council of the City of Homer, Alaska, Authorizing the Formation of the East End Road Water and Sewer Assessment District and Authorizing the City Manager to Proceed with the Preparation and Construction of the East End Road Water and Sewer Project. City Clerk. Fiscal Note: Project No: 215-859: Property owner share of the project is $325,701.84. Water assessment is estimated at $15,689.97 and the Sewer assessment is estimated at $20,721.26. Total estimated project cost is $478,973.30. Funded by HAWSP, 2.5% loan and property owner assessments. Recommend adoption.

G. Resolution 05-09, Of the City Council Amending the City Fee Schedule Regarding the Seasonal Sewer Fee. City Clerk. Fiscal Note: Cover costs of meters, fittings, inspections and provides sales tax revenue. Recommend adoption.

H. Resolution 05-10, Of the City Council of Homer, Alaska Awarding the Contract for the Hillside Acres Water and Sewer Project to the Firm of Herndon Construction LLC of Homer, Alaska in the Amount of $1,978,714.50 and Authorizing the City Manager to Execute the Appropriate Documents. City Clerk. Fiscal Note: Budgeted in Acct. 215-816: Loan; Accelerated Water and Sewer Program; Preliminary Assessments. Recommend adoption.

Memorandum 05-13, from Public Works as backup.

I. Resolution 05-11, Of the Homer City Council Establishing the Homer Conference Center Feasibility Study Steering Committee and Confirming the Mayoral Appointments of Anne Marie Holen, Beth McKibben, Dennis Novak, Beth Wythe, Derotha Ferraro, Bill Smith, Lane Chesley, and John Fenske as Committee Members. Mayor. Novak. Recommend adoption.

Placed under Resolutions.

J. Resolution 05-12, Of the City Council of Homer, Alaska Requesting the Alaska State Legislature to Provide Maintenance and Repair Funds to Local Government owned Harbors. City Manager. Port/Harbor. Recommend adoption.

Memorandum 05-14, from Port/Harbor Director as backup.

Placed under Resolutions

WYTHE/BECK - MOVED FOR THE ADOPTION AND/OR APPROVAL.

City Clerk Calhoun inquired, due to comments at the Committee of the Whole, if the Council wanted Item E., Resolution 05-06(A)(S), removed and placed under Resolutions.

Mayor Pro Tempore Yourkowski confirmed that the Council does want Item E. placed under Resolutions.

VOTE: YES: NON OBJECTION. UNANIMOUS CONSENT.

Motion carried. The recommendations of the Consent Agenda, as read, were adopted and/or approved with the exception of Ordinance 05-04, Resolutions 05-06(A)(S), 05-11 and 05-12.

VISITORS

A. Corp of Engineers, Re: 20 Year Dredge Spoils Planning.

George Kalli gave a power point presentation of the information in the Council's packet regarding the DMMP - Dredged Material Management Plan:

Purpose - to identify the least cost 20 year dredge disposal alternative, alternatives must met environmental engineering and economic constraints. The cheapest plan is known as the Base Plan and is the federally preferred plan.

Site Location - North site adjacent to Freight Dock Road and the Current Site is adjacent to the camp ground.

Alternatives and associated costs.

Temporary Berm Cross Section or temporary containment dike. Homer Share total cost $17,663,384 at current site and Homer Share Total cost $22,738,284 at north site.

Soldier Pile Bulkhead Cross Section, Soldier Pile Bulkhead Dewatering Alternative at Current Dewatering Site and at North Site. Homer Share $121,851 and total cost $5,251,688 at current site. Homer share $135,239 and total cost $3,424,143 at north site.

Permanent Berms reinforced with Impermeable Geotextiles Cross Section or permanent containment dike at Current Dewatering Site and at North Site. Homer share $28,859 and total cost $2,533,656. Homer share $38,653 and total cost $19,326 at north site. The north site has the lowest unit cost for dredging and is hence the preferred plan, Base Plan, of the federal government. If Homer favors a differing locally preferred plan payment of the additional cost to dredge the harbor must be negotiated between the federal government and the City. Initial construction costs are shared: USCG 50%, Federal Homer O & M 40% and City 10%. Homer construction funds 10% to be paid during construction, remaining 10% minus real estate credits to be paid over 30 years. Real estate credits for the north site alternatives is only $327,000.

Annual dredging payments will account for increased cost of dredging if Base Plan is not selected.

ANNOUNCEMENTS/PRESENTATIONS/BOROUGH REPORT/COMMISSION REPORTS

Kyra Wagner, Library Advisory Board, thanked the Council for their commitment and support. She told the Council that the Library Advisory Board does support the sales tax issue. She stated that when she was working on the Vote Committee regarding the Library Loan, she received feed back from people that live outside of town who indicated a willingness to pay the sales tax to do their part for City services, ie., the Library. She emphasized that if there is any City service that gets a lot of support it is the Library.

Carole Hamik gave a summary of the last Parks and Recreation Commission Meeting:

Guidelines for disposal of property recommending retainage for green space, town square and park purposes. Proceeds set aside in a fund to support parks and green spaces.

Community Park Day, May 14, 2005. Food, music from local bands, youth games, tree giveway, vendors, trash can painting, evening bon fire on the beach and local group involvement such as Boys and Girls Club, Boy and Girl Scouts, Elks, etc.

Trails Committee summary.

Amend Bylaws to change meeting time from 7:30 p.m. to 6:30 p.m.

Karen Hornaday Hillside Park plan with new recommendations

New Trails Map should be ready by May 1, 2005. Marilyn Sigman at Alaska Coastal Studies is producing the map.

PUBLIC HEARING(S)

A. Ordinance 05-01, Of the City Council of the City of Homer, Alaska Amending Homer City Code Sections, 21.48.060(h) Central Business District - Landscaping Requirements, 21.49.060(h) General Commercial 1 - Landscaping Requirements, and 21.61.105(l)(7) Conditional Use Permit - Landscaping. City Manager. Planning. (First Reading January 10, 2005, Public Hearing January 24, 2005, Second Reading February 14, 2005.)

There was no public testimony.

B. Ordinance 05-02, Of the City Council of Homer, Alaska Amending Homer City Code Chapters 21.32, Definitions, to add a New Section 21.32.208 Foot Print Area, Chapters 21.48 Central Business District, 21.49 General Commercial One District and 21.50 General Commercial Two District, Building Area and Dimensions, to Increase the Allowable Area of Buildings Used for Retail and Wholesale Business to 66,000 Square Feet. McLay. Wythe. (First Reading January 10, 2005 and forwarded to the Planning Commission for review and hearing, Public Hearing January 24, 2005, Second Reading February 14, 2005.)

Ray Kranich voiced appreciation for the opportunity to speak on this matter and clarified that he is speaking as a private citizen. He urged the Council to please adopt this at their next meeting, emphasizing that on June 15, 2004 the majority of City voters told the City that they wanted a larger shopping opportunity then was recommended by the Planning Commission and approved later by the City Council. He requested the Council to accept the voter's decision and to not continue to dilute and side step this matter any longer. He suggested that with the larger shopping opportunity in Homer the Council may find that there will be a significant increase in sales tax revenue, which would eliminate the need for the sales tax increase proposed in Ordinance 05-03, which has already been turned down by the same voters. He thanked the Council.

Frank Griswold provided his comments in written form and read it into the record, points were:

Bold and Unsubstantiated claim - in both Memo 05-03 and Councilmember Stark's point of view in last week's Homer News that claim when WalMart came to Whitehorse all prospered because the pie got bigger rather than slices getting smaller. According to Mr. Griswold, his research found that Horwood's Office Supply did not prosper and after 30 years of business, went out of business, that there are 10 to 15 other prime business lots and buildings standing empty, that RV parks took a hit, that the Alpine Bakery stated, "That's too bad." when told that a box store was coming to Homer. He relayed the Council action and some of the history of WalMart in Whitehorse. One person, he said that he interviewed, said that the impact of WalMart in Whitehorse was not as bad as some feared and not as good as some hoped, that the hobby shops are gone and many Mom and Pop stores shut down. He relayed other similar comments about WalMart.

Comments about saturated retail markets bringing deterioration and decay. Retail sprawl development - followed by a series of economic and social problems for host communities.

10 sins of retail sprawl: He suggested that the Council read these for themselves. Destroys economic and environmental value of land. Encourages inefficient land use that is very expensive to serve. Fosters redundant competition between local governments, an economic war of tax incentives. Forces costly infrastructure development at the edge of towns. Causes disinvestment from established core commercial areas. Requires the use of public tax support for revitalizing rundown core areas. Degrades the visual, aesthetic character of local communities. Lowers the value of other commercial and residential property, reducing public revenues. Weakens the sense of place and community cohesiveness. Masquerades as a form of economic development.

Violation of personal environment by sprawling retail development leads to an alienation from community, a sense of isolation and disconnectedness.

Homer News Point of View article by Councilmember Stark - as far as whether the building standards are appropriate for a 66,000 square foot store, a person knowledgeable in planning and development would say they are adequate for any size large store; that the Homer economy is in the pits and people are desperate for food and shelter; and that he once served as a State Director of Planning and Technical Services. Mr. Griswold voiced his guess that any planner who doesn't agree with Councilmember Stark is simply not knowledgeable, that this demonstrates a desperation to enact the Ordinance, and that Mr. Stark did not say what division or for what state. Mr. Griswold stated that one would wonder why the credits did not include the fact that Councilmember Stark is a land speculator, who recently purchased ten acres in the GC2. He urged the Council to evaluate the credibility of Councilmember Stark's claims.

Ordinance 04-11(A) took 18 months of careful deliberation. Is this nothing more than a kangaroo court accommodating Fred Meyer's building schedule? Council does not have the public testimony or recommendation from the Planning Commission. He suggested that there be a second public hearing by the Council.

The will of the people was incorporated into the City Code via Ordinance 04-18. How can it be claimed that a vote to reduce footprint limits is also a vote to increase floor area limits? These are totally separate issues. If the claim is that the voters meant to enact something other than Ordinance 04-18 then this is an admission that the ballot initiative itself lacked sufficient clarity to be valid. Council has no right to speculate on how citizens would have voted if the initiative were worded differently.

Mr. Griswold concluded by wondering what if Congress had declared Al Gore President based on speculation that he would have garnered more votes than George Bush, if Ralph Nader had not entered the 2000 Presidential Race. He thanked the Council.

Elaine Grantier, resident of Homer for 23 years, repeated her comments from seven months ago. She told the Council that she thinks it their responsibility to do whatever it takes to bring back the 1, 2, 3, 4 whatever million dollars is being dropped in the Central Peninsula, emphasizing that Homer needs the business and the money spent in Homer. She noted that the larger foot print would have greater property tax, that sales tax would certainly be beneficial, that the associated jobs may not be the best in the world or the wages not that high, but the wages will be spent here. She stated that from every financial aspect it does not make sense to not try and do what it takes to bring the money back to Homer. She noted that as she gets older this is a quality of life issue, adding that her husband is much older and more frail; therefore, they can no longer jump in the car and run to Anchorage or Soldotna. She asserted that the extra floor space in the foot print brings what is missing, when you're retired in Homer. She stated that Homer is the greatest place to be when retired except for the things included in that catch all phrase, "dry goods", that it makes all the difference in the world the older you get to be able to get what you need in Homer. She voiced strong support and relayed that support of those who signed the initiative petition, that they really want this to happen She expressed recognition that spending habits will change, that there are some pros and cons to both sides, and that this is needed and voiced appreciation for Council's support.

Kathy Smith thanked the Council for their many hours of preparation spent on matters like this that come before the City Council. She submitted a written letter of which she read into the record, points are:

Protest the rather arbitrary across the board increase of the recommended size caps for retail and wholesale buildings at 66,000 feet in several of the business districts. Recommendation is without foresight and does not serve the interests of the majority of Homer residents.

Homer is still in a very favorable position with regard to planning the town's future. Any time spent in careful deliberations and debate is time well spent.

There is more concern than that of new sources of revenue such as new source of fresh water to last more than a few years, expansion of water and sewage treatment systems to supply the demands of the increasing population, and to improve and direct the traffic flow of the busy summer streets.

Don't forget the vision of the Town Square Project and the Planning Commission.

Keep in mind Homer's many newly renovated and freshly painted buildings and shops, the expanding college campus, the many seasonal visitors and that the Borough tax records show the Homer economy to be growing steadily each year.

She encouraged the Council to lead Homer in a direction based on thoughtful planning and that the bottom line is not the dollar it is the people and the community of Homer. She thanked the Council.

Eva Saulitis, lives in City limits, advised that she is speaking on behalf of herself and her partner Craig Matkin, who could not be present. She stated that she wanted to address the editorial that Councilmember Stark wrote in the paper:

Definition of Potemkin Village: Something that appears elaborate and impressive, but in actual fact lacks substance. Councilmember Stark implies that's what Homer is without a 66,000 square foot Fred Meyer and that this store will turn Homer into a community with substance. Councilmember Stark is actually proposing to turn Homer into a Potemkin Village. It will have elaborate and impressive facade of retails. Will this provide substance?

A community of substance is one that provides for its poorest citizens, has compassion, supports the efforts of local businesses, comes together in times of need, and works together to fulfill community dreams.

Homer already is a town of substance, it is not a Potemkin Village, although it may not appear elaborate and impressive. Read the letters to the editor to see how many "Thank Yous"there are each week, this is substance.

Councilmember Stark owes it to the citizens of Homer to provide figures to back up his claims. His article states that Fred Meyer, with a 66,0000 square foot store, would create hundreds of jobs. According to Mary Lofflin, Vice President of Public Affairs for Fred Meyer, in a recent issue of the Alaska Journal of Commence, a large store would have 75 to 100 workers.

One of the economic impacts of a new WalMart store in Whitehorse, Yukon was a large turnover in the retail labor force as workers left jobs to work at WalMart. What is important in the Homer Community is the net jobs that will be created by Fred Meyer, new jobs that will lower the unemployment figures.

Councimember Stark's comment that when WalMart went to Whitehorse, and similar to Kodiak, the pie got bigger and so all prospered. Research does not back that claim. Several businesses closed in Whitehorse 2002.

Councilmember Stark's comments that a small store will adapt his or her selection and/or service to thrive in the new environment.

Why shouldn't a responsive outside retailer have to adapt his or her selection and service to the environment of the community? Fred Meyer ignores retail realities in Homer by proposing to include a liquor store and pharmacy in its plan and by failing to show how a 45,000 square foot store, double the size of Homer's Safeway, is not large enough to stock with general merchandise goods that Homer residents say that they want. She expressed a lack of belief in the Fred Meyer Corporation.

Rhetorical and biblical quotes, are a Potemkin Village of words,

Homer citizens deserve data of substance to prove the economic pie will get larger with the 66,000 square foot store and justification on why the current size limit is not adequate to house groceries and retail goods.

Knowledge is power, without knowledge we seed out power to the Fred Meyer Corporation.

She thanked the Council.

Valerie Connor, resident of the City and Planning Commissioner, noted that she is not representing the Planning Commission in any way, shape or form tonight. She commented that the store size issue is haunting, it is contentious and divisive and people feel really passionate about this issue, adding that she is no exception. She noted that with the passage of Resolution 05-02 (2) a step is made that changes the face of Homer and the community forever. With so much at stake it is really disturbing to see so much misleading and overly optimistic information being circulated about the effects a new larger retail store will have in the community. Claims that a new store will cure the City's financial woes. That young people will lured into staying here. Claims of hundreds of jobs leading to fewer people in need. Even claims that this store will save lives due to fewer trips up the road. These are huge shoes to fill and even if some of these claims come to pass, at what cost? Another phrase being used to justify this Ordinance, which is in the body of the Ordinance and is billed as the will of the voters, adding a reminder that just 42% of the registered voters, less than half, voted on the size cap issue, of those 717 no votes and 984 yes votes, a difference of a mere 267 votes. Ms. Connor expressed her thought that this is not a mandate and suggested that in drafting future Ordinances, legal documents, it is best to avoid suggestive language and to stick to the facts. The implication that those who oppose a larger store are against economic development is a ludicrous and offensive assumption. She stated that there are numerous, compelling reasons that she is opposed to a corporately owned mega store coming to town, none of which destine Homer to a diminished economic future. If this Ordinance passes it leaves Homer one step closer to a generic America. She thanked the Council.

Cathy Ulmer clarified that Ulmers is actually less than 1/3 the size of the proposed footprint, being at 20,000 square feet, therefore, the new store would be a little over three times as big.

Sue Post thanked the Council for the opportunity to speak out tonight, adding that she is a land and business owner inside the City, but not a City resident. She had a correction for the record, that at the last City Council meeting Mr. Stark said that 63% of the voters approved the June 15th initiative and that it was 57% approved it, she noted that Mr. Stark was at the June 21st meeting and voted to certify those results. She voiced disapproval of Ordinance 05-02, of such a large building size when the 45,000 square feet, currently on the books, had not even been tried. She voiced an understanding that Safeway has plans to increase to 45,000 square feet and Fred Meyer was also willing to build at 45,000 square feet. If those places really want to carry merchandise as well as groceries they can be creative and fit it in. They could do without a 3,000 square foot liquor store, Homer has plenty of liquor already, interjecting that reading the Police Records shows that liquor creates quite a problem in Homer. Quite a bit can fit into 3,000 square feet, shoes, socks, underwear and probably even towels and sheets could fit in that area. She encouraged the Council to change their mind regarding the Scenic Gateway Area, inquired what they are thinking to allow that large of a building there, noting that this particular stretch of the road has sold more people on Homer than anything else. Why ruin that and create the eye sores that Soldotna and Wasilla both have. She reminded the Council to look at the big picture, adding that she keeps hearing that growth and new larger stores will bring down prices of groceries and other items, and agreed that it may for awhile. She addressed the comments that this will be a revenue generator for the City via sales tax, which may for a while, and that if the City gets enough revenue it will lower taxes, which is unlikely, in reality, with more growth and demand on City services such as water and sewer improvements, road maintenance, the land fill, more police and fire protection and etcetera. Studies have shown that rarely do new taxes cover the costs of public services, in reality, residents will have to cover the cost burden. New jobs, perhaps. Will there be housing built to accommodate all the workers of low paying jobs? The cost of living in Homer keeps going up. These jobs may work for teens, but are not head of household type jobs. Those with quality jobs such as graphic artists, web designers, architects, accountants, etcetera, don't expect to see any work come from outside corporations since they hire from within. She encouraged the Council to consider the cause and effect in the Community and thanked the Council.

Joel Cooper, non City resident and resides in the Bridge Creek Water Protection District, commented in support of the library. He voiced his feeling that the size Ordinance is an economic issue and the quality of goods and equality in the economic system that brings these goods to market. He echoed the comment about running up the road to get cheaper, adding that people don't even know what the cost of the goods truly are. Lower the costs to get cheaper goods means someone is getting paid an unliveable wage and goes all the way around the economic system, which should be considered. Other things that lower costs are damage to someone else's water shed, land, flora, fauna and air and usually corporations lower their costs by marginalizing and having an impact on those things. He encouraged the Council to start a discussion to completely localize the economy, dictating corporations are not needed. Everyone in this community could be employed by sitting down with the unemployed and the young and ask what they want to do. Invest with local money not someone else's money. He commented about people whining about taxes and that we need to take care of this place and should be able to take care of ourselves, the independent strength of Alaska, which is not asking a large corporation from Cincinnati to take care of us.

Marla McPherson, non City resident, spoke on three points and that she feels this issue is a bit divisive in the community.

When the people within the City limits voted it was a margin of 260 votes, but if the vote expanded beyond City limits to those who consider Homer their home and who care about the quality of life in Homer, the margin would be almost 50/50.

What's a compromise? The majority rules. The 45,000 square foot was already a compromise, a middle ground and it seemed like the process really worked. There were many who wanted a building of 20,000 to 25, 000. Others wanted 60,000 to 80,000. Raising it up to 66,000 loses the compromise. Differentiates between winners and losers.

Consumer demand. As a consumer she prefers to shop locally and wants that right maintained so that she does not have to shop at a corporation. She voiced concern that any large corporation could chase out the local stores. As a consumer this is shrinking her options and lowers her quality of life.

Ms. McPherson reemphasized the comment that the corporation needs to adapt to our community and our wishes rather than the small businesses having to adapt to the corporations. The burden of proof is an interesting concept and should be on the corporations instead of the small businesses.

Carole Hamik, City resident, relayed that Mimi Tolva, who was at Fishery Meetings in November or December, ran into a Fish and Game Person who had lived in Homer for quite a few years and was moving to a place in Oregon, because they had no box stores. Ms. Hamik voiced support of the hard work of the Planning Commission, for so many months, to come up with a compromise of the 45,000 square feet. She expressed her belief and concern that this will really hurt the Mom and Pop stores and that she really enjoys trying to support the local businesses such as Ulmers, the Book Store and so many that hang in there during the winter so the community can have things. She echoed Valerie Connor, Sue Post and Marla McPherson's testimonies. She thanked the Council.

Dennis Gann, City resident, shared some of his impressions upon reading Ordinance 05-02:

The first two whereas clauses are the best reasons to state why this Ordinance should not be here. There have been years of testimony. There is a compromise of store size.

City Council voted 4/2 in favor of the smaller size, a strong majority.

Whereas, states that the intent of the voters was clear, yet that was a smaller majority. 42% to 58%. The intentions of the voters was not clear and all have different size ideas.

The 45,000 square foot cap is a good compromise and the right decision.

The Planning Commission put in many hours and came in with a smaller size limit, 35,000. This was raised to 45,000, because many citizens what a larger size and it is a compromise.

This should be laid to rest.

Encourage local entrepreneurship within City residents. City residents should come forward and fulfill the needs the citizens feel they have for material goods.

Do what is suggested in the Homer Comprehensive Plan and encourage locals to fulfill these needs and not look outside. If stores want to come, that's great but don't give them the biggest slice of the pie, which should be spread out amongst all.

Increasing the size limit to 66,000 square feet is giving the vast majority of the economic pie to outside sources, to corporations, who take their profits out of the community.

A vast majority of the profits from locally owned business is recycled into the community.

C. Ordinance 05-03, Of the City Council of Homer, Alaska Approving a One Percent Increase in the City Sales Tax, with .25 Percent Dedicated to a Community Enhancement Fund, and Submitting a Proposition to Approve Such Changes to the Voters for Voter Approval at a Special Election on Tuesday, March 22, 2005 and Providing for a Maximum Property Tax Rate in 2005 of 4.50 Mils if the Sales Tax Increase is Approved by the Voters. Novak. (Fiscal Note: Projected revenue for 2005 $966,551.25. Sales Tax increase would provide $1,288,735.00 for a year and a 1 mil decrease for the year equals $339,738.00 decrease in property tax revenue. Cost of Special Election is approximately $7,000.00.) (First Reading January 10, 2005, Public Hearing January 24, 2005, Second Reading February 14, 2005.)

Marla McPherson testified that a few years back the asked to be annexed and that she is happy and willing to pay sales tax and property tax to fund her City. She acknowledged, interjecting a flip point on her comments on the box store issue, Council's need to find other sources of revenue for which she empathizes. She stated that she sees taxes as her investment in the community and the future of the community, and sees taxes as her dues for the things she believes in and values in this community. She told the Council that she is very picky about the economic development of this community, knows there is a price to pay for that and that she is willing to pay that price. She thanked the Council.

Ken Castner, City resident, voiced surprise at reading the following statement in the Homer News: "If the community really wants this project we're going to need this sales tax increase to get it." said City Manager Walt Wrede, Wednesday of the new Library. Last summer there was 1/2% sales tax put before the voters and it was never coupled with anything. It failed because the City never made a defense of that sales tax and there was no campaign, no one advocating it and no debate. Now this is double from 1/2% to 1% and all of a sudden it seems like it is coupled with the new Library. He voiced his desire for debate and discussion about raising revenues and paying for things, adding that he is a big supporter of paying for things coming out of fiscal plans, understanding costs and ramifications are on every single thing. What's the real costs the real benefits? What happened to the money that was budgeted after this building got paid off? the money from annexation? Annexation money was supposed to be the answer to a lot of ills. By expanding the tax base there was supposed to be more money to do some cool things, like expanding the library. What happens to the new money from the expansion of infrastructure and property? Why now is this on the back of the library? If it is going to be on the back of the library then just do it, the library will be paid off in two years and the tax can go away. People have long memories and recall passing the tax to pay for the Cop Shop, and as soon as it was paid for the tax never went away. He encouraged an honest debate about the tax and thanked the Council.

Frank Griswold commented that Mr. Castner mentioned that the previous tax was coupled, or that he, Mr. Griswold, thought it was initially coupled with the library and then had to be separated, because it was a two issue ballot, which he thought was not allowed and is why he is confused. He stated that this one seems to couple the tax increase with a reduction in property tax, adding his surprise that it could be done in this case and not be allowed to do it with the library. Mr. Griswold stated that he was also a little surprised to see that the cost estimate for this election is $7,000.00 and that the cost estimate for the previous ballot, initiative fiscal note estimated cost was $1,500 to $2000, quite a dramatic increase. He noted the option of having a mail in ballot and that at the very least, if trying to raise revenue, a more economical way, could be found, to have this election. He thanked the Council.

Joel Cooper reiterated what Marla McPherson said, that he supports the tax, would support a larger tax and being annexed into the City to pay property tax. He commented that he thinks they are now eligible to be annexed since their properties are adjacent to the City and would like to take the steps to be annexed. He encouraged the Council to work with the lower Kenai Peninsula Communities to develop local economy, to see what it takes to pay for infra structure by the people here, what tax would it take to do that and that it is the American/Alaskan way to pay for our own. He stated that everyone needs to quit whining about the tax thing, just figure it out and do it. He thanked the Council.

Mayor Pro Tempore Yourkowski suggested talking with the City Manager or City Clerk about being annexed.

Leonard Wells, City resident, requested that there be some changes, agreed and strongly supported 1% or more, not associated with the mil levy, voicing his opinion that next year the mil levy will just be increased anyway. The tax should be for a specific purpose when the library is done, maybe throw in the Animal Shelter and when paid off the tax goes away. If Council wants the revenue stream continued Council has to come up with a reason that the citizens will vote for and in that way

the Council will be doing what the citizens want. Additional comment on the initial vote on the square footage - things have changed and as with this one on the tax planning, between the 1/2% being turned down. The Council has changed so the members on it have changed and those who were voted in were voted in because of the views of some of the former Councilmembers who did not get reelected.

Heather Beggs, City resident, stated that she is generally in favor of sales tax, so bring it on, and that she is happy to pay for services she gets. Council has an opportunity here, with Councilmember Novak's idea for Community Enhancement Funds, to really put a lasting future for certain services that are always expected of the residents. This is a way to show that Council does, in fact, take its responsibility seriously to support quality of life in Homer. There is a lot of discussion that still needs to happen, it is interesting to see how things get, easily, tied together. Homer Foundation is a great organization in town that does a fantastic job of community enhancement for longevity sake. Finding a nice compromise would be wonderful.

Sue Post noted that on September 2004 there were 4,098 registered voters in the City of Homer and that she often hears that the surrounding area, shopping district or whatever it is called,is about12,000 people. She stated that she personally uses the Library, call the police when needed, use public rest rooms, and uses the harbor. She voiced surprise that the City residents did not approve this, why not spread the burden on those that use the City and keep this a City that works. She voiced her approval of the sales tax increase and thanked the Council.

Mayor Pro Tempore Yourkowski thanked everyone fortheir comments and called for a recess at 8:47 p.m., reconvening the meeting at 9 p.m.

ORDINANCE(S)

A. Consent Agenda Item B Ordinance 05-04, Of the Homer City Council, Amending Homer City Code Section 21.70.010, Initiation of Zoning Ordinance Amendments. City Clerk. Recommend introduction, forward to Planning Commission for public hearing and input and conduct Public Hearing February 14, 2005 and Second Reading February 28, 2005.

a. Amendments to the Homer City Zoning Ordinance may be initiated by:

1. The City Council; or

2. The Homer Advisory Planning Commission.

[b. Any person may request a zoning ordinance amendment subject to the following conditions:

1. A zoning map amendment may be requested only by petition from a majority of the property owners in the area concerned;

2. An amendment to the ordinance text may be requested by a petition bearing the signatures of fifty voters registered within the City; and

3. By introduction of an ordinance by the City Council.]

b.[c.] Except for the extension of existing district boundaries, no change to the zoning map shall be considered which contains an area less than one acre, including the half-width of any abutting street or alley rights-of-way.

c.[d.] Any proposed amendment to the zoning ordinance which is substantially the same as any other proposed amendment submitted within the previous nine months and which was rejected shall not be considered unless introduced by the City Council, or the Homer Advisory Planning Commission.

d. [e]. The zoning amendment request by an individual(s) shall include the [names] name(s)and addresses of the requester(s) [applicant], a map showing the area involved, the present zoning and proposed zoning, the appropriate fee, if applicable, and any other pertinent information requested by the City.

MCLAY/WYTHE - MOVED TO PLACE THIS ON THE FLOOR. (For introduction and first reading.)

Council discussion.

Seems a little in conflict to remove the ability for any person to request a zoning Ordinance and then Item d. talks about requests for individuals.

City Clerk noted the City Attorney comments on page 45: That he did not really understand why subsection b is in the code and elucidates. Which is why subsection b. is deleted.

It was noted that this automatically goes to the Planning Commission for evaluation and recommendation.

Desire was expressed for a response from the Planning Commission in the near future to proceed with in the timing in the Ordinance.

Changing the public hearing date would provide the Planning Commission more time.

NOVAK/BECK - MOVED THE PUBLIC HEARING TO FEBRUARY 28, 2005 AND SECOND READING THE FOLLOWING MEETING. (March 14, 2005)

There was no discussion.

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

Motion carried.

There was no discussion.

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

Motion carried.

CITY MANAGER'S REPORT

A. City Manager's Report (Updates and Follow Up - 911 Emergency Call System, Library Resolutions, Community Schools, Hospital Lease, Conference Center, Town Center, Spit Parking Plan, Hillside Acres LID, Ice Rink Issues, Animal Shelter; January Employee Anniversaries - John Bacher P/H 17 years, Randy Rosencrans HPD 16 years, Larry Rutherford P/H 15 years, Wes Cannon P/H 10 years, Ken Frazier PWD 9 years, Chuck Thorsrud HPD 6 years, Mark Kruzick HPD 5 years, Wayne Stanley HPD 4 years, Jolee Ellis Library 3 years, Stacy Luck HPD 3 years, Joanna Baugh Library 1 year, Brandi Flint HPD 1 year and Jo Johnson City Clerk's Office 1 year; Mayor Correspondence regarding Harbor Fees and Taxes to Mark Rowland and Ken Moore, Northern Enterprises; Pride Program Information and Letter to the Mayor regarding Low Cost Transit Bus from Nick and Toy Bairamis; and a Letter to the Mayor from Steve Herbert.)

Comment items:

Sketching out of the proposals in the Town Center can be done for less.

Nervous about spending public money on the parking lot at the Hockey Rink, it may not be legal for the City to do that since it is being developed on a public site.

Nervous about a low cost transit bus, can visualize what is going to happen and who is going to end up taking it over. Not economic unless the City just starts pouring tax payer money into it.

Community Schools Program - press conference by University and School District. There will be a change in the administration of the program. The School District has decided that it is not in their mission to do the program and would like to get out of the administration of that program. The University has decided that it is in their mission and would like to take it over and expand the program to include on going education and adult education. Initially there will be no changes in the programming and program format and the School District has agreed to continue making their facilities available for the program. The details such as insurance are being worked out. The hope is the programs will expand in the future.

South Peninsula Hospital Lease - this is not a revenue generator. Mayor Bagley and the City Manager will be discussing a draft MOU, land trade and etcetera. The Borough has expressed a need for the land with the new expansion, and the vacation of a portion of Bartlett Street. Council's in the past have been reluctant to relinquish the land for a variety of reasons including control over how that hospital is operated. The soonest this would go to Council is February 14th, there is still a lot of discussion to be done. It was suggested that staff review the record so that the present Council would have some history on that.

B. Bid Report. (Bid: Invitation to Bid Hillside Acres Water and Sewer Project. Sealed bids are due in the Office of the City Clerk by 2 p.m. Tuesday, January 18, 2005. Bid documents cost $85.00, documents plus mailing cost is $115.00. Standard Construction Specs are $50.00 plus $25.00 for mailing. Bidders must be listed on the Plan Holder's List to be eligible to propose. Four bids were received see Resolution 05-10 on the Consent Agenda; Bid: Sealed Bids to lease City Property on the Homer Spit. Sealed bids are due in the Office of the City Clerk by 2:00 p.m Tuesday, February 15, 2005. Bidders must be listed on the Plan Holder's List to be eligible to bid; and RFP: Request for Proposals Incorporation of Art into the New Homer Animal Shelter. Sealed Proposals are due in the Office of the City Clerk by 4:30 p.m Thursday, March 24, 2005. Proposers must be listed on the Plan Holder's List to be eligible to propose.)

The City Manager was congratulated for solving the easement problem on Hillside Acres so that this could go out to bid.

COMMITTEE REPORT

A. Town Center Development Committee (Next scheduled meeting is January 27th at 5:30 p.m. Chamber of Commerce Building.)

Bill Smith, Committee member, gave a summary report:

Basically meets once a month for a short period. Lot of work to get through relatively short meeting times.

The task has not been finished to put together a couple of recommendations for the Planning Commission.

There are, somewhat, unfinished documents that give the mission statement, vision and the guiding principles to be used throughout the project.

Missing key deemed necessary is some illustration of the plans. Have a person in mind to assist them, Laura Baylock who has a Master's Degree in land architecture, with the public presentation of this project. With her background in landscape architecture she has brought some significant value to the table regarding plan development. $4,500 from Town Center Development Committee funds, $1,000 from Planning Department and $1,000 from City Manager's budget is pretty close to the amount needed to hire her as a consultant.

It has been difficult to develop a plan, lacking specific core projects or anchors. Decided that there should be three anchors - civic, public space and private. Some felt that retail would be a favorable anchor. The project needs to be flexible.

With the Landscape Architect the hope is to illustrate a couple of development ideas such as roads and parks. Laura Baylock is being tasked to bring a rendition of possible architectural styles for this area of development, so that it would be a recognizable part of town rather than an eclectic mix of things.

The idea is for a public presentation forum to involve the entire community.

Chair Smith suggested that June 30th would be more appropriate, due to the necessary public process, than March 31st for the final report, referencing Resolution 05-16.

Councilmember Stark stated that his concern has always been the lack of a private anchor, which is why he has expressed misgivings about the Convention Center Proposal, which needs to fit into the development on the CIRI land. It also needs to be determined what the English Bay Corporation is going to do with their holdings and that one of the things they want to do is have Native Student Housing for students at the University. Since they bowed out of the purchase of the University's 4.7 acres in favor of the City's acquiring it, the student housing could be accommodated in a very small part of the Town Center. He emphasized his support of a City Hall in the Town Center. He voiced his concern that this has never come to the Council to get the views of the Council and hoped that this does not just come as a full blown, definitive, done deal at the end and everyone looks at it and the colors are pretty and drawing legible and so that's what happens.

Chair Smith replied that no plan is final or accepted by the City until the Council accepts it and that there is a public process. He noted that there are two Council members on the Committee. He acknowledged the other things that Councilmember Stark mentioned that the Committee needs to pay attention to, since these are issues and illustrate the difficulty in following the mandate of the Council and develop a couple of plans for this area when there are not specific things to plan around. The final plan will be a model, the plan would be adapted to the necessity of whatever the project is, adding that it is pretty amorphous.

B. Road Standards Committee (No meeting date scheduled.)

There was no discussion.

C. Beach Policy Committee. (January 5th meeting synopsis.)

There was no discussion.

PENDING BUSINESS

NEW BUSINESS

A. Memorandum 05-15, from City Clerk, Re: Council Appointment Selection Process. Requested by Councilmembers.

Recommendation: Each Councilmember submit a name as a nomination, by February 14, 2005 to fill the vacancy created by Rose Beck's resignation, which is effective after the March 29, 2005 Regular Council Meeting and final selection scheduled for February 28, 2005.

STARK/McLAY - MOVED FOR THE APPROVAL OF THE RECOMMENDATION OF MEMORANDUM 05-15.

Council discussed the process, advertising, having applications submitted and time lines. There is value to selecting the person early.

Possible methods of selection:

1. Advertise for two consecutive weeks or however length of time Council deems necessary. Request applications. Review applications. Make a short list if appropriate and then decide either by secret ballot or not.

2. Each Councilmember submits a name as a nomination with an application and Council reviews between meetings and makes a selection.

3. Nominations made on the floor, secret ballot and motion on the resulting winner. Similar to Mayor Pro Tempore selection.

WYTHE/STARK - MOVED TO AMEND IN FAVOR OF ITEM 1, WHICH WOULD BE TO ADVERTISE FOR TWO CONSECUTIVE WEEKS AND THEN PROCEEDING THROUGH THE APPLICATIONS.

Discussion.

This is a more preferred manner of selection. Someone may want to be considered yet if not nominated would not be considered.

Making an earlier selection provides for the individual a chance to get more up to speed by the time they take office. The learning curve is a little bit steep.

This follows more the regular candidacy declaration. Anyone who wants the position can apply.

Application be the standard and informative.

February 14th for applications and February 28th for final selection thus providing the person the month of March to get up to speed, which makes sense.

There is a vacancy in that Councilmember Beck has submitted her resignation.

Council asked that the advertising be for three consecutive weeks if possible and that the applications be received by packet deadline to provide time for review.

There was a consensus of the Council to advertise three consecutive weeks if possible and that the applications be submitted on packet printing day.

There was a comment that the applications could be laid on the table on February 14th since the final action would be taken on February 28th. No formal action was taken in this regard.

Councilmember Beck stated that she may not and would not vote on the selection.

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

Motion carried.

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

Motion carried.

RESOLUTIONS

A. Resolution 05-08, Of the City Council of Homer, Alaska Renaming Cowles Way to Hidden Way within the City of Homer in Compliance with the Enhances 9-1-1 Street Addressing Program. City Clerk. Recommend adoption.

Memorandum 05-11, from City Planner as backup.

Memorandum 05-12, from City Clerk, Re: Reason to not change name - Cowles Way named after Homer's first Mayor.

STARK/McLAY - MOVED THE APPROVAL OF RESOLUTION 05-08 BY READING OF TITLE.

Council discussed whether or not to maintain the name since it is named after the first Mayor Homer. The history of Homer is kept alive by names placed on things for a reason, changing names destroys the history of Homer.

This request came from the residents on the street and that they don't know how to say the name, which is why the Planning Commission approved the request. There were only three households that signed the petition. Reasonable to give the petitioners more time to get more signatures.

YOURKOWSKI/BECK - MOVED TO POSTPONE TO SECOND MEETING IN FEBRUARY TO GIVE THEM A CHANGE TO COLLECT MORE SIGNATURES AND PERHAPS COME UP WITH A DIFFERENT WAY TO HONOR THE FIRST MAYOR. (February 28, 2005.)

There were pros and cons to postponing.

VOTE: YES: WYTHE, YOURKOWSKI, STARK, NOVAK, BECK, McLAY.

Motion carried to postpone.

B. Resolution 05-13, Of the Homer City Council Adopting Staff Recommendations for Phase I Parking Improvements on the Homer Spit. City Manager. Port and Harbor.

Memorandum 05-16, from Port/Harbor Director as backup.

NOVAK/WYTHE - MOVED TO ADOPT RESOLUTION 05-13 BY READING OF TITLE.

The Port and Harbor Commission has reviewed this and put forth a staged plan to accommodate parking, this is a reduced Phase I, a minimal approach, a first step, includes paid parking and looks good. There has been concern expressed about not making any provision for the stall holders, such as currently exists. The proposal is for a small area, at the top of ramp, for a paved parking area, which will be an improvement and the beginning of a good thing. In the future consideration may be given to stall holders. The one day maximum stay, the objective is that people staying longer will park in the unpaid parking at the other end of the boat harbor.

VOTE: YES: NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

C. Substitute submitted under Agenda approval. Resolution 05-14(S), Of the City Council of Homer, Alaska Approving the 95% Architectural/Design Plans for the New Homer Public Library; Approving the Final Cost Estimate and Budget; and Authorizing the City Manager to Proceed with the Bid Process Provided Certain Conditions are Satisfied. City Manager.

Memorandum 05-17 from City Manager, submitted under Agenda Approval.

STARK/BECK - MOVED FOR THE ADOPTION OF RESOLUTION 04-14(S) BY READING OF TITLE.

Councilmember Stark noted that there are a lot of questions on this process, because of the cobbling together of the money to finance it and the lack of definitive knowledge on what the bid will be, since no one can know, and how this fits into the various commitments to the various funding sources. He voiced satisfaction that what is proposed will work just fine and therefore, is very much in favor of this.

Councilmember Yourkowski read a portion of the City Manager's Memorandum submitted this afternoon:

According to the proposed schedule, the bids will not be opened until after the special election on the sales tax if that is passed. This will provide the Council with additional information regarding whether it wishes to make a bid award.

He noted that this is not a final thing and that there are issues that the Council needs to resolve. It is important that the public knows that the Council is not indebting the City without further considerations.

VOTE: YES: NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

D. Substitute submitted under Agenda approval. Resolution 05-15(S), Of the City Council of Homer, Alaska Authorizing and Providing for the Incurrence of Indebtedness in the Amount of $1,700,000.00 for the Purpose of Constructing the New Homer Library. City Manager.

Memorandum 05-17 from City Manager, submitted under Agenda Approval.

NOVAK/BECK - MOVED TO ADOPT RESOLUTION 05-15(S) BY READING OF TITLE.

Councilmember Novak noted that the City Manager is signing the commitment until he has funds in place. He reiterated the statement from City Manager's Memorandum 05-17 submitted this afternoon:

According to the proposed schedule, the bids will not be opened until April 1st after the special election on the sales tax if that is passed. This will provide the Council with additional information regarding whether it wishes to make a bid award.

He noted that at the rate of 4.5% interest this loan payment would be about $104,000.00, less than originally anticipated.

Councilmember McLay noted that this has been something all have been trying to accomplish and he commendd the Library Advisory Board for their hard work to bring these numbers down from the maximum that the populace allowed the City to borrow. The only thing to do is to back the Board.

VOTE: NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

E. Resolution 05-16, Of the City Council of Homer, Alaska, Granting An Extension of the Deadline for Proposal Recommendations to the Planning Commission from January 2005 to March 31, 2005. Beck.

WYTHE/BECK - MOVED FOR THE ADOPTION OF RESOLUTION 05-16 BY READING OF TITLE.

WYTHE/BECK - MOVED TO AMEND TO PROPOSE THAT WE HAVE AN INTERIM REPORT AVAILABLE BY MARCH 31ST WITH A FINAL REPORT AVAILABLE BY THE END OF JUNE.

This addresses Councilmember Stark's desire to have an idea of what is being worked on and Chair Smith's need for more time and to make it all work together. This time frame will provide sufficient time to put together the report and illustrations for presentation. The date is more realistic.

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

Motion carried.

There were no further comments.

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

Motion carried.

F. Consent Agenda Item E. Resolution 05-06(A)(S), Of the Homer City Council Commenting on Draft Amendment NO. 8 of ADOT & PF 2004-2006 State Transportation Improvement Program - Proposed State Transportation Projects Affecting Homer Residents. Stark. Amended by Council on January 10, 2005. Recommend ratification.

On the floor from the Consent Agenda motion.

City Manager recommended an amendment, to accept the roads ai.

WYTHE/McLAY - MOTION TO AMEND RESOLUTION 05-06(A)(S) BY TAKING OUT THE "PROVIDED STATE REBUILD AND UPGRADES THESE ROADS TO CITY STANDARDS" IN THE FOURTH PARAGRAPH ON PAGE 60.

Now reads: BE IT FURTHER RESOLVED, in order to improve the score of this project, the Council hereby declares that it will assume ownership and maintenance responsibility for that portion of Ohlson Lane and Bunnell Ave.(West Bunnell) currently owned and maintained by DOT/PF.

There was one clarification that this is West and not East Bunnell.

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

Motion carried.

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

Motion carried.

G. Consent Agenda Item F. Resolution 05-11, Of the Homer City Council Establishing the Homer Conference Center Feasibility Study Steering Committee and Confirming the Mayoral Appointments of Anne Marie Holen, Beth McKibben, Dennis Novak, Beth Wythe, Derotha Ferraro, Bill Smith, Lane Chesley, and John Fenske as Committee Members. Mayor. Novak. Recommend adoption.

BECK/NOVAK - RECOMMEND ADOPTION OF RESOLUTION 05-11 BY READING BY TITLE.

Councilmember Wythe stated that she pulled this from the Consent Agenda due to the request from Cathy Ulmer to be included.

WYTHE/BECK - TO INCLUDE CATHY ULMER.

Councilmember McLay noted that the appointments belong to the Mayor and therefore, this should wait until he makes that appointment. He suggested adopting this Resolution as is.

VOTE:(primary amendment) NO. All were unanimously in objection to the motion.

Motion failed.

There was no further discussion.

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

Motion carried.

H. Consent Agenda Item J. Resolution 05-12, Of the City Council of Homer, Alaska Requesting the Alaska State Legislature to Provide Maintenance and Repair Funds to Local Government owned Harbors. City Manager. Port/Harbor. Recommend adoption.

Memorandum 05-14, from Port/Harbor Director as backup.



STARK/McLAY - MOVED THE APPROVAL OF RESOLUTION 05-12 BY READING OF TITLE.

Councilmembers Stark and McLay voiced opposition due to the City's agreement to take over the harbor. There are new people in Juneau and the state gave as much as they could at the time. However, this requests comes from all of the harbormasters in the state. Port/Harbor Director Steve Dean was commended for his good presentation at the Committee of the Whole meeting.

YOURKOWSKI/McLAY - MOVED TO AMEND TO ADD A BE IT FURTHER RESOLVED, that State Marine Fuel taxes be returned to the Municipalities that own the harbor where the fuel is sold.

There was no discussion.

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

There was no further discussion.

VOTE: (main amended motion) YES: NOVAK, BECK, McLAY, WYTHE, YOURKOWSKI.

NO: STARK

Motion carried.

COMMENTS OF THE AUDIENCE

Audience comments upon any matter.

Sue Mauger thanked the Council for their vote on the two library Resolutions, their support and the City Manager's assurances that this was headed in the right direction. She noted that a lot of this hinges on the sales tax issue, in terms of Council's comfort, and, therefore, encouraged the Council to work with the groups like the Library Advisory Board, departments and others affected by the sales tax to help the community understand the need to move forward with the sales tax. She encouraged the Council to be up front about what the sales tax will be used for. She noted the excitement about the passage of the Resolutions and thanked the Council.

Ken Castner voiced appreciation for the new used chairs in the Council Chambers, noting how comfortable these are. He commented about the hockey rink and the 16,000 cubic yards of dredge spoils, a win win situation, much cheaper than hauling gravel from Anchor Point. He expressed dissatisfaction with the way in which the Council handled the statement from the Executive Session. He requested that the Council disclose the direction they gave the Attorney. He stated that one of the things that has always bothered him is that there is no way to, very reasonably, prosecute any of his businesses, that he spends a lot of time at the harbor hunting for a parking spot and, for many years, is and has been willing to pay for a parking spot. Mr. Castner requested that the Council give him a parking spot at the harbor, because he has business here, lives here and is a citizen of the City of Homer. He shared his knowledge that the people in towns on the east coast get to do things for free, due to their residency. He objected to having to stuff money into an envelop at the Airport, that he does not want to have to pay for every day of the year, that he wants to pay $100 or $150 and be able to put a sticker on his car and wants to be able to put a sticker on his car on the Spit and be able to get in his boat and go fishing. He asserted that it is only going to get worse and that the parking has gotten worse in the 30 years that he has lived here. He told the Council that he thinks they can do some small things for the people who live in town and some things that they can't do, but this is one of the things that they can do.

Stephanie Silianoff, resident on Cowles Way, stated that the petition signatures are from pretty much everybody that lives there, noting that there are seasonal occupancies and vacancies. She noted that Cowles is a difficult name to pronounce and spell, noting the same about her name. She stated that she was aware that Cowles was named after a former Mayor and that the two Cowles brother's pronounced Cowles differently. She thanked the Council for their consideration.

Mike Kennedy, citizen of Homer and the planet, stated that, from the historical perspective and names, most of the names are in Subdivisions. He commented on Cowles, Hazel Avenue named after Hazel Heath, emphasizing that it was not a public process that named that in historical perspective. Historical perspective is like Karen Hornaday Park, Bridget Kuhns Swimming Pool, wherein the public input has named something. He suggested naming the Animal Shelter after the first Mayor of Homer or the new Library, but when the street is named by the Mayor after himself this is not an historical process. If the people want to name something after the Mayor they should pick out a proper edifice. He thanked the Council.

Frank Griswold commended the Mayor Pro Tempore for running a very good meeting. He stated that his first point is that in the discussions of Ordinance 05-02, that he did not believe that this Council or the public seemed to be aware of the fact that fiscal zoning is not a legitimate zoning objective, nor does he believe it can legally enact a zoning ordinance primarily designed to increase sales tax revenue, to build a tax base, to create jobs or to promote or restrict business competition. He stated that if Council does not know this, they should know this and should find out and should make the point clear to the public. To clear up some of the public testimony, the Planning Commission never did recommend that 45,000 square foot limit for foot print or floor space, the Planning Commission unanimously recommended sticking with the 35,000 square foot limit on floor space enacted by all that hard work on Ordinance 04-11(A). This Council completely ignored the Commission's unanimous advise and enacted Ordinance 04-34. At the last meeting, during Comments of the Audience, Councilmember Stark rose for a point of personal privilege to state that this Ordinance is identical to the previous one. Mr. Griswold stated that he would like to point out that the previously Ordinance, that he believes Councilmember Stark is referring to, 04-34 did not affect General Commercial 2 so it did not affect Mr. Stark's personal property on Kachemak Drive and Ordinance 05-02 does, a major distinction. He inquired if the point of privilege is addressed in Roberts Rules and does it just apply to Councilmembers or does it apply to the citizenry as well.

Mayor Pro Tempore Yourkowski told Mr. Griswold to ask City Clerk Calhoun after the meeting.

Mr. Griswold acknowledged that with an okay and thanked the Council.

Leonard Wells commented on the parking on the Spit, noting that he does not have that much of an opinion on their vote. He inquired if the City provides any parking to the lease holders of City property such as the City requires of private individuals who lease land providing minimum amounts of parking space for each piece of property? He voiced his assumption that the City provides no parking availability to the owner, themselves or for the customers of this leased property and since they don't, how can the City think the property owners should make parking available to potential customers. Regarding Cowles Way and the EMS side of it, the 911 system, he stated that the phone company provides the physical address to EMS so pronunciation is not an issue, however, believes that the people who live on a street should be able to call it anything they want.

Tom Bursch, City resident, thanked the Council for all their good work, for the Mayor Pro Tempore running the meeting and voiced appreciation for Council's support for the Library. He commented that he went to Soldotna this last week to shop and spent $58.00 total, and $14 was on ice cream for his kids. He stated that he liked the comments on history and people looking back at Homer's History and recalled Ocean Trawl and the promises of an outside organization dangled in front of Homer and that legacy. It looks great and sparkly, but there are great ramifications to our businesses. In Homer small business supports small business. He voiced concern about Fred Meyer not having that same commitment. He noted the absence of Kate at Nomar and Kenny Quinn at the Gear Shed and Ulmers, that it is not the existing businesses driving for more space this is coming from outside. He voiced appreciation of the Council's time and how hard they work and all the considerations they make on these decisions.

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 commented about the library project funding and sales tax issue. He clarified the comment in the News Paper that was attributed to him, of which Mr. Castner's referred, that "they" were talking about this in a broader context as to who the constituents were likely to be and who would be likely to lobby for a sales tax if it were on the ballot. He advised that "they" were not just talking about the Library, as it appeared in the paper. He noted that when one looks at the things people in Homer have told the Council that they want, all the issues that the Council struggled with in the long term fiscal plan and the most recent budget cycle it is very clear that a tax increase would be needed to meet those needs. He emphasized that this includes not just the Library, not just the Library operations or loan payments, but the Animal Shelter staffing, Non Motorized Transportation and Trails Plan, park expansion, park equipment, depreciation, fleet upgrades, building maintenance and etcetera. He noted that, although Council can dedicate the sales tax to the Library, the amount of money raised by the sales tax, if it goes on the ballot as is proposed, it is to cover a wide variety of things.

COMMENTS OF THE MAYOR PRO TEMPORE

Mayor Pro Tempore Yourkowski had no comment at this time.

COMMENTS OF THE CITY COUNCIL

Councilmember Beck commented on the sales tax issue, noting that ten Alaskan cities recently closed their doors - no more city services. She encouraged everyone to pay attention to the fact that there is a crisis among communities in Alaska, because of the lack of State Revenue Sharing. She noted the following: The fact that the City needs sales tax revenue has nothing to do with how funds were managed by the City or irresponsible hiring practices or by waste of goods and services. The City needs to raise taxes, because there are insufficient funds to operate at the current level. The City is taking on some civic functions - upgraded animal shelter, larger library, additional growth of Pratt Museum, additional growth of non profit agencies in this community, growth of community itself, needing to upgrade roads and equipment. This is really serious business and this Council would not bring the sales tax issue to the table if this were not urgent. She encouraged everyone who is listening to review the budget, the financial status of the community and get to the polls and vote on this issue.

Councilmember Wythe clarified that sales tax issues have to go to the voters. She noted that the Council is elected to represent the Community and intended to represent the direction of the voters, regardless of the voter turn out. She related this to the large cap issue, that this is not a Fred Meyer issue, wherein the voters voted to increase the size cap. She noted that for her, it is an image and growth issue and that when people talk about Homer, outside the community, they talk about Homer as a no growth community for a number of reasons such as building size cap. She voiced concern that this persona goes out into the State and other areas and discourages industry coming into the community, such as the Pebble Mine people and their families. She noted that when these types of industries come in they support and improve growth, support the payment of the library, animal shelter, a new City Hall and all of those things that the City would like to have. She emphasized the need to change that persona, since this locks Homer out of any potential growth, and present an openness to growth and to encourage growth.

Councilmember Stark commented on the number of statements about the poor job the City did in supporting the sales tax in October. He noted that the Council discussed the matter quite a bit at the table and that the sum and substance of it was that the Council did not want to threaten the citizens, saying that if you don't support this tax bad things will happen. He wondered if maybe that was a mistake and maybe the Council was supposed to threaten, acknowledging that many times that is successful. Council was honest and stated that they needed the money, because the City used to get $800,000.00 a year from the state and, as Councilmember Beck said, there are cities in this state just locking their doors and walking away. There are couple of ways to get more money, one is to generate the money through growth in the community and the other is to tax the citizens more and more and more.

Councilmember Novak stated that he sensed a different tone, that there is a consciousness about working together more as a community and not in opposition to each other. He noted that everyone is working together to make this a better place, to meet new needs, find ways to meet those needs and yet maintain a quality of life, a difficult job. He voiced his opinion that they are all making an effort at that and making progress. He expressed appreciation for the good public testimony and the good points the public made, which helps. He encouraged the public to never hesitate to come out and say what they want to say, because it is important. He noted that "they" are going to continue to work toward the goal of making this a healthy community, economically and as a place to live in, and maintain and look toward a vision that keeps that in focus.

Councilmember McLay reiterated his statement and commitment he made during his candidacy that people would have his ear. He thanked people for contacting him with their concerns, that he reads every letter and email message and that he takes time out of his business, almost daily, to talk to people that come in that have issues they want to talk about. He reiterated his commendation to the Library Advisory Board for all their hard work, adding that he does listen to them and does read their letters and emails. He emphasized that this Council is listening to the people and encouraged everyone to continue to contact the Council and tell the Council the direction desired. He noted that the Council cannot promise to do everything the public wants, but does need to hear from the public. He told everyone that the Council is working hard to do good work.

Councilmember Yourkowski concurred with Councilmembers Novak and McLay, that he really appreciates the public participation and the sharing of some good ideas and some good testimony. He stated that he wanted to make sure that everyone feels welcome to give Council their thoughts. He expressed appreciation for the Council's indulgence tonight.

ADJOURNMENT

There being no further business to come before the Council the meeting was adjourned at 10:44 p.m. The next regular Meeting is scheduled for February 14, 2005 at 7 p.m. and the next Committee of the Whole is scheduled for Monday, February 14, 2005 at 4 p.m. A special meeting has been scheduled for Monday, February 7, 2005 at 7 p.m. for a Board of Adjustment Appeal Hearing regarding the Vann Appeal. All meetings scheduled to be held in the Homer City Hall Council Chambers located at 491 E. Pioneer Avenue, Homer, Alaska. clerk@ci.homer.ak.us, 235-3130.







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MARY L. CALHOUN, CMC, CITY CLERK

1. Resolutions 05-14(S) and 05-15(S), listed under Resolutions.

2. Resolution 05-02 was the appointment of the Treasurer and Deputy Treasurer, Therefore, one might conclude that she meant to say Ordinance, since she is testifying under Ordinance 05-02.