Session 02-02, a Regular Meeting of the Homer City Council was called to order at 7:34 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 conducted a Worksession on the City Wide Survey from 4:12 p.m. to 6:54 p.m.

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

STAFF: CITY MANAGER DRATHMAN

CITY CLERK CALHOUN

CHIEF OF POLICE ROBL

FINANCE DIRECTOR BAUGH

PUBLIC WORKS DIRECTOR MEYER

AGENDA APPROVAL

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

The agenda was approved by consensus of the Council with the following changes: Addition of Resolution 02-10 to the Consent Agenda as Item K. and additional information, Borough's non objection letter, for Memorandum 02-06, Item A. under New Business and a substitute Resolution 02-06(S) for Resolution 02-06, under Resolutions as Item A.

PUBLIC COMMENTS UPON MATTERS ALREADY ON THE AGENDA

Alan Parks, Alaska Marine Conservation Council (AMCC) and commercial fisherman, commented on Resolution 02-06(S). He reported that he had attended a good community discussion,"Who owns the fish?", at the Pratt Museum on January 18th. He wanted to make it clear that he is a current fisherman and not a former fisherman as noted in a follow up article to, "Who owns the fish?". He thanked Mayor Cushing, Councilmembers Yourkowski and Kranich for their sponsorship. He voiced support for the factual whereas clauses within Resolution 02-06(S) concerning broad participation and the consideration for the community hire, skippers and crewmembers. He noted that the whereas clauses are similar to the recommendations in the National Research Council Document entitled, "Sharing the Fish..." with the quote:"Nor did the committee find a compelling reason to establish a separate, complementary processor quota system." Mr. Parks advised that this document does state that managers are to consider and take thought about the communities adjacent to the resource and the people who actually harvest the fish; the skippers and the crewmembers. He advised that one of the important things for the Council to know is that Homer is not the only concerned community weighing in on the allocation of fishery resources to processors. He named the following: The City of Seldovia, Village of Chignik, North Pacific Fisheries Association, Alaska Longline Fisherman's Association out of Sitka, and Alaska Fishermen's Association which have all have passed similar resolutions. He noted that Sand Point, the City of Chignik, Chignik Marketing Association, and the City of Perryville are just coming up to speed on this issue. He informed the Council that this matter is to be decided by June. He reported that the AMCC is in the process of a signature petition campaign very much similar to Homer's Resolution to support local communities to make strong conservation standards, against allocation of fishery resources to corporations and processors. He encouraged the Council to sign the petition, adding that AMCC has about 400 signatures at this time.

Kevin Hogan, local business owner and primarily a fisherman first, commented on Resolution 02-06(S) and emphasized the importance of the Council taking a stand on this issue. He encouraged the Council to set up some kind of mechanism to receive regular input and to interface with the North Pacific Fisheries Management Council, Board of Fish and all the management entities that affect the fishing industry, which is key to Homer's economy. He mentioned how well he felt the Fishing Task Force worked and asked the Council to perhaps establish something of this nature. He voiced his opinion regarding conservation and that the most directly threatened species is the fishing industry. He stated that the local fishing industry is in a severe crisis and may not survive. This is a step to ensure that the fishery does not get further restrictive regimes that preclude any other solution. He requested that the Council pull Ordinance 02-02, legal fees, off of the Consent Agenda for discussion regarding the extensive overruns, because this issue needs more attention.

Glen Carroll, fisherman for 40 years, gave consent or affirmation to what Alan Parks had reported. Mr. Carroll stated that there is almost nothing, in all the years he has fished, that is scarier than processor IFQs. He commented that it may be a little confusing to Council to hear of co-ops, such as the one in Chignik, adding that this is a very different sort of situation than what is going on in the Berring Sea. It is common knowledge that one particular processor owns 30% of the polluck in the Berring Sea, a huge number. He emphasized that this is a whole movement that is going to put the fisheries in the Gulf of Alaska into a few processor's hands. He noted that this is an exceedingly fearful thing to him and also for the City of Homer. He voice his assurance that the Council can see the consequences of fish product moving away from this town, and very rapidly, if "this" continues on a fast track. He advised that someone has likened this to a situation in which the State of Alaska will be going back to the days of fish traps, where the full Salmon Industry was owned by half a dozen processors in Seattle.

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.)

Mayor Cushing requested that Item. G. be placed under Resolutions as Item. B. Council concurred. Councilmember Fenske requested that Item C. be placed under Ordinances as Item A.

A. Homer City Council regular meeting unapproved minutes of January 14, 2002. Recommend approval.

B. Ordinance 02-01, Of the City Council of Homer, Alaska, Accepting and Appropriating an Alaska Highway Safety Grant in the Amount of $26,271.00, Appropriating the City's Match of $2,919.00 to Purchase a Speed Monitoring Trailer and Five Hand Held Radar Units and Authorizing the City Manager to Execute the Appropriate Documents. City Manager. Fiscal Note: Grant Revenue and Expenditure Acct. 151.739. Match appropriated from Acct. 100.160 to Expenditure Acct. 151.739. Recommend adoption for introduction and first reading, Public Hearing and Second Reading on February 11, 2002.

Memorandum from Chief of Police as backup.

C. Ordinance 02-02, Of the City Council of Homer, Alaska, Amending the 2001 Budget by Appropriating $170,000.00 from the General Fund, Fund Balance for Legal Fees. City Manager. Fiscal Note: $170,000 from the General Fund Fund Balance to Acct. 100.5210.100. Recommend adoption for introduction and first reading, Public Hearing and Second Reading on February 11, 2002.

PLACED UNDER ORDINANCES AS ITEM A.

D. Ordinance 02-03, Of the City Council of Homer, Alaska, Appropriating $22,500.00 from the Fire Department Vehicle Reserve Fund for the Balance on the Fire Department Ambulance and for a Radio and Gurney for the Ambulance. City Manager. Fiscal Note: $22,500 Appropriated from the Fire Department Reserve Fund to Acct. 152.5902.381. Recommend adoption for introduction and first reading. Public Hearing and Second Reading on February 11, 2002.

E. Ordinance 02-04, Of the City Council of Homer, Alaska Accepting and Appropriating a Grant from the Alaska Department of Public Safety, Division of State Troopers in the Amount of $10,000.00 for Traffic Enforcement with an Emphasis on Identifying Seatbelt and Child Restraint Violations and Authorizing the City Manager to Execute the Appropriate Documents. City Manager. Fiscal Note: Grant Revenue and Expenditure Acct. 151.739. Recommend adoption for introduction and first reading. Public Hearing and Second Reading on February 11, 2002.

Memorandum from Chief of Police as backup.

F Resolution 02-07, Of the Homer City Council Designating Signatories of City Accounts, Superseding any Previous Resolution so Designating. City Manager. Recommend Adoption.

NOTE: NATIONAL BANK OF ALASKA SHOULD READ WELLS FARGO BANK OF ALASKA

G Resolution 02-08, Of the City Council of Homer, Alaska Approving the Selection of Consultants, William Nelson and Associates of Kenai, Alaska and Larson Consulting Group of Anchorage, Alaska and Authorizing the Administration to Negotiate Fees Regarding the Professional Engineering Design Services for Various Water and Sewer Local Improvement Districts. City Manager. Fiscal Note: Under the Homer Accelerated Water and Sewer Program. Recommend adoption.

Memorandum from Public Works Director as backup.

PLACED UNDER RESOLUTIONS AS ITEM B.

H Resolution 02-09, Of the City Council of Homer, Alaska Recognizing the Contributions of Paul Morton and His Valuable Assistance on December 14, 2001 to the City of Homer Police Department. City Manager. Recommend adoption.

Memorandum from Chief of Police as backup.

I. Memorandum 02-04, from the City Clerk, Re: Liquor License Renewals, for Eagle Liquor, Captain's Patties Seafood House, Elks, Homer Brewing Company, El Pescador and Kharacters. Recommend approval and non objection.

J Memorandum 02-05, from Mayor Cushing, Re: Reappointment of Mimi Tolva and Rebecca J. Langman to the Parks and Recreation Advisory Commission and the Appointment of Randal Hagenstein as Alternate on the Economic Development District (EDD). Recommend confirmation.

MAYOR ASKED THAT RANDAL HAGENSTEIN'S APPOINTMENT BE DELETED. Mr. Hagenstein's confirmation is pending. There was consensus and non objection of the Council.

K. If approved under Agenda approved - added: Resolution 02-10, Of the City Council of Homer, Alaska Supporting the Initiatives and Proposals to the State of Alaska Coastal Impact Assistance Program by the Pratt Museum, Center for Alaska Coastal Studies, Kachemak Bay National Estuarine Research Reserve, and the Alaska Maritime Wildlife Refuge, to Develop and Expand Coastal Education Programs to Increase Awareness and Knowledge about Alaska's Coastal Environments. Mayor. Recommend adoption.

FENSKE/KRANICH - MOVED FOR THE ADOPTION OR APPROVAL OF THE RECOMMENDATIONS OF THE CONSENT AGENDA AS READ, WITH CORRECTIONS AND DELETIONS.

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

Motion carried.

VISITORS

ANNOUNCEMENTS/ PRESENTATIONS/ BOROUGH REPORT/ COMMISSION REPORTS

Mayor Cushing advised that Senator Torgerson has announced the joint committee meetings regarding the City's annexation and are as follow: In Juneau, February 7th at 8 a.m. with the LBC, February 9th at 9 a.m. for public testimony and February 12 at 8 a.m. for the committees.

Council voiced consensus regarding travel authorization for the Mayor and Council to attend those meetings.

Mayor Cushing advised that Pier One is asking to renew their lease. He reported that he has received correspondence regarding the call for proposals for the 2003 Federal Subsistence Fisheries Management Regulations and for membership on the Federal Subsistence Regional Advisory Council. He encouraged Councilmembers to let him know if they are interested in applying for membership and that the information would be on file with the City Clerk. He advised that he has received a fact sheet from Habitat for Humanities International and has been approached regarding the possible use of a City foreclosed lot for a Habitat for Humanities program home. He relayed that he had advised the Habitat for Humanities that he thought this a great idea and would pass this on so that it could go through the formal process.

City Manager Drathman indicated that this was already being addressed, and this information was placed in the Council's mail boxes today.

Councilmember Marquardt reminded the Council that he had given them the information from Mike Gordon at the last Council meeting and encouraged them to provide input and direction.

Mayor Cushing advised that he has received the information for nominations for the First Lady's Volunteer of the Year Award. He noted that two individuals from Homer won last year and that he would like to see Joe Lawlor nominated again this year. The deadline is March 25th and he will leave the information with the City Clerk.

PUBLIC HEARING(S)

A. New Liquor License, Brew Pub License for Alice's Champagne Palace.

There was no public testimony.

ORDINANCE(S)

A. Consent Agenda Item C. Ordinance 02-02, Of the City Council of Homer, Alaska, Amending the 2001 Budget by Appropriating $170,000.00 from the General Fund, Fund Balance for Legal Fees. City Manager. Fiscal Note: $170,000 from the General Fund Fund Balance to Acct. 100.5210.100. Recommend adoption for introduction and first reading, Public Hearing and Second Reading on February 11, 2002.

FENSKE/KRANICH - MOVED FOR THE ADOPTION OF ORDINANCE 02-02 BY READING OF TITLE.

In response to the Council's request for an explanation for the public, the City Manager noted that, after Executive Sessions, the Council voted to continue litigation on a number of fronts, which impacts legal fees. The November and December 2001 bills exceed the balance in the legal fees account. He stated that there should be no surprises since the City is involved in annexation, a pricey thing, and a number of litigations that are ready to go to trial. He stated that he does not anticipate this happening next year, with the caveat that this is, of course, unknown.

Councilmember Kranich interjected comments from the Finance Director to him that to balance the 2001 budget an additional allocation is needed from the General Fund Fund Balance for 2001.

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

Motion carried.

CITY MANAGER'S REPORT

A. City Manager's Report

1. Report on the Repair and Renovations to the Small Boat Harbor Project

2. Report on the Kachemak Bay Multi-Purpose Ocean Dock Project

3. Memorandum from the City Attorney, Re: Abigail Fuller Records Appeal.

Appreciation was voiced for the progress reports and the Police Department Annual Statistics report. It was noted that Kachemak Bay Multi Purpose Ocean Dock is actually Pioneer Dock.

There was comment about the alcohol/drug incidents numbering 5,971 during 2001, many involving minors. Chief Robl briefly elucidated this stat, pointing out that there were eight working officers for 2001, who addressed these incidents as well as many others.

Mayor Cushing commented on the letter of commendation for the Police Department that the Council had received today.

Kenai Peninsula Borough Assemblyman Moss arrived and was asked if he would give a Borough Report. He reported that the assembly is heading to Juneau tomorrow to lobby for their capital improvement priority list, adding that the outlook regarding appropriation is not good. He offered to take any suggestions or comments.

Mayor Cushing inquired regarding the reconsideration process for Ordinance 2001-48 and the Resolution opposing annexation and if public comments could be taken prior to any call for reconsideration.

Assemblyman Moss responded in the negative and briefly outlined the process.

The Council thanked Assemblyman Moss for his professionalism during the Assembly's meeting on February 22nd, with particular regard to Ordinance 2001-48 and the Resolution opposing Homer's Annexation.

COMMITTEE REPORT

Councilmember Marquardt reported on the Parking Task Force meeting held on January 15th, that the task force is fired up regarding parking and will be addressing parking issues for some of the "big players" with large buildings and complexes. The Parking Task Force group is concerned and excited about making the parking requirements workable and the last thing they want is for parking to stand in the way of sensible development.

PENDING BUSINESS

NEW BUSINESS

A. Memorandum 02-06, from City Clerk, Re: New Liquor License, Brew Pub License for Alice's Champagne Palace.

Recommendation: It is the recommendation of staff that the Homer City Council "voice non objection and approval" of the new Brew Pub Liquor License for Alice's Champagne Palace conditional upon the Borough's non objection. NOTE: The Borough's non objection was received and added by the Council under Agenda Approval.

KRANICH/MARQUARDT - MOVED FOR THE ADOPTION OF THE RECOMMENDATIONS OF MEMORANDUM 02-06 BY READING OF TITLE.

There was a brief comment regarding there being two breweries in Homer.

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

Motion carried.

RESOLUTIONS

A. 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.

Postponed on January 14, 2002 to the next Regular Meeting.

MAIN MOTION AS MADE ON JANUARY 14, 2002, IS ON THE FLOOR: YOURKOWSKI/CUE - MOVED FOR THE ADOPTION OF RESOLUTION 02-06 BY READING OF TITLE ONLY.

FENSKE/KRANICH - MOVED TO AMEND RESOLUTION 02-06 WITH RESOLUTION 02-06(S).

Agenda Addition, with copies for the public, therefore, no requirement to read into the record: Resolution 02-06(S), Of the City Council of Homer, Alaska Supporting Local Independent Fishing Families and Communities by Opposing the Allocation of Alaska Fishery Resources to Processors "The Two Pie System" or other Fishery Resource Allocation Programs that Create a Closed Class of Processors. Mayor. Yourkowski. Kranich. Ladd (Mr. Ladd was added as a sponsor during the meeting.)

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

Motion carried.

Council discussed the resolution and noted their objection to processor quota shares.

Councilmember Kranich asked for the Council to vote by unanimous consent.

There were no objections.

VOTE: UNANIMOUS CONSENT.

Motion carried.

B. Consent Agenda Item G. Resolution 02-08, Of the City Council of Homer, Alaska Approving the Selection of Consultants, William Nelson and Associates of Kenai, Alaska and Larson Consulting Group of Anchorage, Alaska and Authorizing the Administration to Negotiate Fees Regarding the Professional Engineering Design Services for Various Water and Sewer LocalImprovement Districts. City Manager. Fiscal Note: Under the Homer Accelerated Water and Sewer Program. Recommend adoption.

Memorandum from Public Works Director as backup.

Mayor Cushing voiced conflict of interest, handed the gavel to Mayor Pro Tem Marquardt and excused himself from the table, adding that he was asked by Larson Consulting Group to be part of their design team.

FENSKE/KRANICH - MOVED FOR THE ADOPTION OF RESOLUTION 02-08 BY READING OF TITLE.

Council briefly discussed the authorization to negotiate. It was noted that Hillside Sewer is included, yet has not been finalized through the LID process. According to administrative staff this is not at issue since Council is approving negotiation, the Hillside Water District is approved and the Hillside project is scheduled for 2003 construction season. Administration assured the Council that they would be notified of any changes.

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

Motion carried.

Mayor Cushing returned to the table at 8:35 p.m. and received the gavel.

Mayor Cushing stated, to make the record complete, that he does most of Mr. Nelson's geotechnical soil exploration in the area, emphasizing that he had not discussed anything about this project with Mr. Nelson, who generally notifies him after the City has notified Mr. Nelson.

COMMENTS OF THE AUDIENCE

Alan Parks thanked the Council for their discussion and adoption of Resolution 02-06(S). He presented the petition and asked the Council to please consider signing, adding that this petition is being circulated around the state. The petition reads: 500 Alaskans for conservation communities and development of future individual fishing quota programs. He stated that this petition pretty much mirrors the resolution. Fisheries management and fisheries biology communities are very complex issues and require a lot of time to be fully understood. Philosophical stances can be taken and do go a long way, when done as a body as the Council has done tonight.

Kevin Hogan commended the Council for breezing through the agenda so rapidly tonight, adding that the last meeting went beyond his bed time. He also commended Councilmember Marquardt for his comments regarding the parking, that a parking ordinance is not desired that will stand in the way of sensible development. This is very important, however, sometimes ordinances of this nature are used as a kind of impetus to development. He commented about speaking to the Council at a previous meeting regarding leasing on the Homer Spit. He relayed that he had a conversation with Marty McGee who asked Mr. Hogan to address his issue. Mr. Hogan asked for some clarification to pass on to Mr. McGee as to what the City is needing.

City Manager Drathman stated that Mr. McGee has his phone number and that he will be glad to speak with Mr. McGee.

Mr. Hogan commented on his issues about property leasing and his attorney's correspondence with the City Manager. He voiced his opinion that there was an impasse in negotiations and that he is ready to proceed with the leasing committee, as set out in the Property Management Policy Manual. He advised that Councilmember Kranich gave him a copy of a Memorandum regarding the appointment of the Lease Negotiating Committee. He asked the Council for some clarification on what exactly the policy manual calls for. He noted that it was amended by Resolution 95-46, the marching orders that were given regarding the leasing policy and the implementation of a committee was that the City Manager shall establish a Lease Committee to negotiate terms and conditions of leasing agreements for City land and facilities for approval by the City Council. Generally the committee shall include the City Planner, Port/Harbor Director, Director of Finance and the Public Works Director or their designees. Mr. Hogan pointed out that the original code contained the phrase that, "however, the composition of the committee may be revised by the City Manager". He pointed out that at the time the committee was revised that clause was deleted, and that the reason why this clause was deleted is that the City Manager is charged with enforcing compliance. He expressed his opinion that at the time this clause was deleted the Council probably had the idea that this was enough of a job for the City Manager and that a little broader spectrum of input on negotiations is what was needed. He commented on the process of changing the Ordinance by Resolution, which did not change the Ordinance, therefore, there is conflict. He asked for the policy to be clarified, and that this be a future Council agenda item. Mr. Hogan emphasized that Harbor Leasing is still very interested in either one of the available lots "out there" in developing according to their development plan. However, he relayed, they are also a little frustrated with the time this is taking and can understand that they need to raise their hand and admitted that they have not lit the fire as much as they should. He noted that the City Manager has graciously stated that he is ready to meet with Harbor Leasing, emphasizing that if that is what the Council wants then they are more than glad to meet with him. He stated that the policy does need to be clearly defined as to who is supposed to negotiate City leases. There is no mention of a standardized lease in the Management Policies and Procedures. The intent in the manual was not to standardized the lease, but to standardize the procedure. He stated that it is important to make this distinction and that he does not have a problem with different lease holders having different terms to their leases. There are different businesses, property layouts, easements and et cetera, therefore, each lease needs to be individually tailored. Procedures and compliance need to be uniform. He objected to the non compliance of existing leases, an on going problem for 20 years. Mr. Hogan suggested that if there are not going to be any changes and if the terms do not mean anything, then he'll sign anything, because it will not matter. He told the Council that he wants to be able to negotiate a long term lease with the City of Homer that is going to be to his benefit, the Council's benefit and the community's benefit. Mr. Hogan voiced his desire that what is on paper means something and if it doesn't, then anything goes.

COMMENTS OF THE CITY ATTORNEY

City Attorney Tans was not present.

COMMENTS OF THE CITY CLERK

City Clerk Calhoun wished Mrs. Cushing a Happy Birthday and voiced appreciation for her support of City staff and her husband's Mayorship.

COMMENTS OF THE CITY MANAGER

City Manager Drathman had no comment.

COMMENTS OF THE MAYOR

Mayor Cushing voiced his hope that everyone's favorites win in the Olympics and that the Alaska Delegation does well.

COMMENTS OF THE CITY COUNCIL

Councilmembers Fenske reported on the Kachemak Bay Branch of the Kenai Peninsula Community College UAA Board meeting on the 11th. He reported that across the Kenai Peninsula the head count and credit hours are down. However, Homer is still 23% of the total head count and 17% of total credit hours. He informed the Council of some of the expansion plans for the campus in Homer, that the latest plan is to expand the building adjacent to City Hall toward Pioneer Avenue into the current parking lot of the college and toward City Hall with a two story structure. He advised that the university is wrestling with fiscal problems, primarily funding for programs, teachers and space and most of the budget is allocated toward maintenance of the UAA, UAF and UAJ. He emphasized that the reason for this funding is that health and safety comes first. He urged the community to support their campus and let the legislators know that there are community needs for higher education.

Councilmember Ladd apprized the listening audience that the Joint Committee of the Community and Regional Affairs is meeting in Juneau, Saturday at 9 a.m to hear public testimony regarding Homer Annexation. He encouraged the public to testify before the Committee and show support for Homer's Annexation.

Councilmember Marquardt thanked all the members of the Council that went, last Tuesday, to the Borough Assembly meeting and for taking the time to go and to testify on the City's behalf regarding annexation, which has become a tedious issue.

Councilmember Cue relayed that during the Worksession, earlier this evening, regarding the City Wide Survey, portions of the 1992 survey results were read. She noted that it was interesting that there were comments by several respondents regarding annexation, pointing out that annexation is not a new issue. She stated that she is looking forward to listening to the discussion by the legislative committee, the LBC and the testimony regarding Homer's Annexation.

ADJOURNMENT

There being no further business to come before the Council the meeting was adjourned at 8:55 p.m. The next regular meeting is scheduled for Monday, February 11, 2002 at 7:30 p.m. in the Homer City Hall Council Chambers located at 491 E. Pioneer Avenue, Homer, Alaska. The Council's Committee of the Whole is scheduled to meet at 4 p.m. on February 11, 2002, in the Homer City Hall Council Chambers.

_____________________________________

MARY L. CALHOUN, CMC, CITY CLERK

Approved: ____________________