Session 04-17, a Regular Meeting of the Homer City Council was called to order at 7:02 p.m. by Mayor Jack Cushing at the Homer City Hall Council Chambers located at 491 E Pioneer Avenue, Homer, Alaska, and opened with the Pledge of Allegiance.

The Committee of the Whole meeting was held from 4:05 to 5:32 p.m. regarding the Regular Agenda Items.

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

STAFF: CITY MANAGER WREDE

CITY CLERK CALHOUN

FIRE CHIEF PAINTER

LIBRARY DIRECTOR HILL

PUBLIC WORKS DIRECTOR MEYER

ABSENT: COUNCILMEMBER:

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

AGENDA APPROVAL

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

The agenda was approved by consensus of the Council with the following additions and changes:

Consent Agenda - Correction of Funding Source notation on page one of Ordinance 04-37 and public comment.

Public Hearing - Witten testimony on Ordinance 04-33, Written testimony on Ordinance 04-35 and

Memorandum 04-110, from City Planner Regarding Ordinances 04-33 and 34.

New Business - Borough Letter of non objection to Frosty Bear and the Den new liquor license.

Resolution - Resolution 04-69, Of the City Council Revising the Community Design Manual to Amend the Glossary and Design Review Options to Address Temporary Structures. Sponsored by the Mayor. Backup of the Planning Staff Report PL 04-57, draft proposed Resolution.

PUBLIC COMMENTS UPON MATTERS ALREADY ON THE AGENDA

The Public may comment upon any matter on the agenda except the public hearing items, the public may testify upon those matters under Public Hearing. (New Liquor License for the Frosty Bear Ice Cream Parlor and the Den Restaurant, Ordinance 04-30, ballot issue regarding long term dept for the Library project; Ordinance 04-31, Appropriating $125,725.34 from the HAWSP ; Ordinance 04-32(A), ballot issue to increase the sales tax by One Half of One Percent; Ordinance 04-33, toIncrease the Allowable Footprint Area of Buildings used for Retail and Wholesale Business to 66,000 Square Feet in the CBD, GC1 and GC2 Zoning Districts; Ordinance 04-34, to increase the square footage to 45,000 Square Feet in the CBD, 55,000 Square Feet in GC1 East End Road, and 25,000 Square Feet in GC1 Scenic Gateway; Ordinance 04-35, Adopt the Final Homer Non Motorized Transportation and Trails Plan and include in the Homer Comprehensive Plan; andOrdinance 04-36, Accepting and Appropriating $6,605.00 for Commercial Vehicle Enforcement Inspections.

Frank Griswold, City resident, commented on the minutes that he thought these were a little incomplete, that he had requested that the Clerk include Doug Stark's comments on June 28th wherein he referred to his close personal friendship with Judge Cutler. He stated that the reason he wants this is the record is that later he made some statement referring to her as the finest judge in the state. He asserted that this was not his characterization, but Councilmember Stark's. He noted that without Mr. Stark's statement his could be misconstrued and are out of context. He also shared his thought that footnote number one was inappropriate, actually rather trite, and, while accurate, it refers to his adding one word zoning when he referred to the purpose of provisions. He told that the Council that if they look in the Code Book under Chapter 21 (1) a little tab sticks up that says zoning. He asserted that this was not to mislead anyone, but the footnote looks like it and why put a footnote unless you are trying to correct something. He voiced his opinion that the footnote creates more confusion and suggested that the word "zoning" be put in parenthesis so that it is known that it is not part of the Code. He encouraged the Council to send Resolution 04-69 to the Planning Commission, about the Design Manual (2) that was created by the Planning Commission and that it is their baby. He relayed his understanding that when it affects a structure over 8,000 square feet, where a conditional use permit is required, it is more than just advisory and is regulatory. He expressed his thought that this may be appropriate and maybe even required by law that the Council send this to the Planning Commission for their recommendation and allow them to have a public hearing on any changes before the Council does something rash. 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.)

A. Homer City Council unapproved meeting minutes June 28, 2004 Special and Regular Meeting and July 7, 2004 Emergency Meeting. City Clerk. Recommend approval.

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

Memorandum 04-100, from Public Works as backup.

C. Resolution 04-63, Of the City Council Authorizing the City Treasurer to Open a New Investment Account with the Firm of Raymond James and Associates, Inc. and Authorizing the City Signatories to Execute the Appropriate Documents. City Manager. Recommend adoption.

Memorandum 04-107, from Finance Director as backup.

D. Resolution 04-64, Of the City Council of Homer, Alaska Approving and Accepting the Renewal of the FY 2005 Jail Service Contract with the State of Alaska, in the Amount of $344,003.04 and Authorizing the City Manager to Execute the Appropriate Documents. City Manager. (Fiscal Note: $344,003.04 budgeted in Account 100.030.4503.) Recommend adoption.

Memorandum 04-106, from Chief of Police as backup.

E. Resolution 04-65, Of the City Council of the City of Homer, Accepting and Acknowledging the Homer Volunteer Fire Department (HVFD) 2004 Strategic Plan. Stark. HVFD Strategic Planning Committee. Recommend adoption.

F. Resolution 04-66, Of the City Council of the City of Homer, Alaska Accepting a Public Library Assistance Grant of $6,250.00 for FY 2005 from the State of Alaska Library and Authorizing the City Manager to Execute the Appropriate Documents. City Manager. (Fiscal Note: Grant money, $6,250.00 and match of $7,000.00 budgeted in Account. 100.146.) Recommend adoption.

Memorandum 04-101, from Library Director as backup.

G. Resolution 04-67, Of the City Council of the City of Homer Approving the Cooperative Agreement by and between the City of Homer, the Kenai Peninsula Borough, and the Kenai Peninsula Arctic Winter Games 2006 Host Society, and Authorizing the City Manager to Execute the Appropriate Documents. City Manager. Recommend adoption.

H. Memorandum 04-102, from City Clerk, Re: Liquor License Location Transfer, Rum Locker and Renewal for Finn's. Recommend non objection and approval.

I. Memorandum 04-103, from City Clerk, Re: Authorization for Elected Officials and Department Heads to attend the AML Summer Legislative Committee Meeting and Alaska Conference of Mayors and AML Board Meeting in Kenai August 19 - 21, 2004. Recommend approval.

J. Memorandum 04-104, from Mayor, Re: Reappointment of Thomas Bartlett, Lane Chesley and Fred Pfeil to the Planning Commission. Recommend confirmation.

LADD/YOURKOWSKI - MOVED FOR THE ADOPTION AND/OR APPROVAL OF THE RECOMMENDATIONS OF THE CONSENT AGENDA AS READ.

City Clerk Calhoun, as pointed out by KBBI's Ashley Gross, advised the Mayor and Council of an error in Resolution 04-64 that the amount of the contract is actually $344,003.04. (3)

VOTE: YES: NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

VISITORS

None scheduled.

ANNOUNCEMENTS/PRESENTATIONS/BOROUGH REPORT/COMMISSION REPORTS

A. Mayoral Proclamation, USCG week of August 1-7, 2004.

Mayor Cushing commended the US Coast Guard, their excellent presence in Homer, their volunteerism and, specifically, the individual members and their families. He noted that the US Coast Guard members are just great people.

Councilmember Stark advised that there is a "Changing of the Guard" ceremony for the Roanoke Island scheduled for August 13th at 11 a.m. He mentioned that the Coast Guard Auxiliary rescued three people 15 miles out on the Bay yesterday afternoon.

Mayor Cushing emphasized the list of what the Coast Guard does goes on and on between the aides to navigation, response and rescue, fisheries enforcement, and the environmental enforcement. He concluded that they are a good bunch.

B. Certificate of Recognition for Alaska Resident Workforce.

Mayor Cushing directed kudos to the City Manager and folks of the City for the 94% Alaska hire recognition.

Planning Commission Chair Chesley gave a brief report. He thanked the Mayor for reappointing and the Council for confirming both Fred Pfeil and Thomas Bartlett to the Planning Commission, adding that both are really fine guys and add a valuable and unique perspective to the Commission. He thanked the Planning Commissioners, Staff, City Manager and the Mayor for meeting at two special meetings during the month of July to work on Homer Hockey related issues, during a time wherein the Commission had hoped to schedule a break. He advised that the Commission hopes to take a break the second half of August for their summer break. He reported that there has been some interesting discussion regarding temporary structures, the Arctic Winter Games, and Homer Hockey Association. He suggested an amendment to the City Code that facilitates special events such as the Arctic Winter Games and seems appropriate for the Council to empower the City Manager/Administration to issue a special event permit so that this does not, necessarily, have to go through Planning Commission or Council review. He further suggested that for this type of a permit the City Manager could check in with the Chief or Police, Fire Chief, Public Works Department and any other Department or anything else the City Manager deemed appropriate. Mr. Chesley concluded that, in light of the special event concept, this could be a way, either now or in the future, for the erection of temporary structures for special events that come to town.

Mayor Cushing advised Mr. Chesley about Resolution 04-69 and that the Council intends to forward this to the Planning Commission and perhaps amend it to include verbiage regarding phased development and on special events, to get the Commission input regarding those two aspects.

Chair Chesley responded to Council inquiry, confirming that the Planning Commission will have comments back to the Council regarding Ordinances 04-33 and 04-34 by Council's August 9th meeting.

Appreciation was expressed for the accomplishments, amount of effort and work by the Planning Commission and that they are not hastily or in a state of fatigue making important decisions for the Community.

Mayor Cushing reported on the Sister City Program, status of Homer's Japanese Sister City's, Teshio, involvement and plans for a trip to Homer's Russian Sister City, Yelisovo. Mayor and Council have priority on trip participation and Steve Yoshida, Sister City Association, is the contact person for other individuals interested in participating.

PUBLIC HEARING(S)

A. New Liquor License for the Frosty Bear Ice Cream Parlor and the Den Restaurant.

There were no public comments.

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

Memorandum 04-109 from Library Advisory Board as backup.

B.1. Ordinance 04-30(S), Version One: Of the City Council of Homer, Alaska, Approving and Submitting a Loan and Long Term Debt Authorization and the Use of not More than $143,113.16 of HARP Sales Tax Revenues per Year, for the Purpose of Financing and Constructing the New Homer Public Library to the Voters for Voter Approval at the October 5, 2004 Municipal Election.(Public Hearings for June 28 and July 26, 2004 and Second Reading July 26, 2004. )

B. 2. Ordinance 04-30(S), Version Two: Of the City Council of Homer, Alaska Approving and Submitting a Loan and Long Term Debt Authorization and the use of not More than 1/8 of 1% Sales Tax (0.125%) Rededicated from HARP for the Purpose of Financing and Constructing the New Homer Public Library to the Voters for Voter Approval at the October 5, 2004 Municipal Election. (Public Hearings for June 28 and July 26, 2004 and Second Reading July 26, 2004. )

Michael Hawfield, LAB member and volunteer working with the Friends of the Public Library, advised that he is a Co Chair of one of the Friends' Committees that is dedicated to communicating the meaning of the vote as it comes out tonight and hopefully goes forward to the general public on the October 5th election. He encouraged the Council to adopt Ordinance 04-30, the measure for the longer term debt to complete the Library project. He emphasized the importance of this ballot issue and the support of the voters for securing additional funding toward the new Library project and for the Library Project to be successful it is necessary to demonstrate firm public commitment to completely fund the final construction costs. He stated that at this crucial point, after long and largely successful fund drives, it is imperative that Homer now demonstrate its firm commitment, which begins with the passage of this Ordinance and a clear, definitive commitment by the City of Homer to stand by its earlier Resolutions to build a new Library and to clearly show its willingness to fund a fair share of the $6.5 million dollar project. He pointed out that, although, there is no guarantee that ensuing fund raising will be successful, it is certain that addition fund raising efforts will fail if there is not a strong commitment by the City and the folks of Homer to ensure that the final costs of the Library will be met. He asserted that if the City fails in this commitment there will be no other funder; individual, governmental or organization; who will feel compelled, in any way, to lend a hand. He voiced his desire to be able to know how the debt would be paid and how to spread the burden as far and wide as possible. He acknowledged the big hearted volunteers and the successful grant writers on City staff who have done an incredible job, to this date, raising money for this library, adding that he knows they will continue to have success and to work hard to narrow the gap of what needs to be raised, in the final hour, to a long term debt commitment. He cited the Haines Library as an example of this type of firm commitment that brought that Library to completion. He agreed that this is a leap of faith, something that is done all the time, and there are a lot of people who have profound faith in the ability and need to have a new Library. He thanked the Council.

John Velsko commented that he would like to see the Library built, that he thinks there is a real need, and that he thinks it irresponsible to take a leap of faith of $2 million when the funding is unknown. He voiced his opinion that it seems like almost deceiving the public to take some of the HARP (4) and HAWSP funds and put these into a capital project and that it is kind of a hat trick. He noted that there is still a need in the original City boundaries for that money, that there are a lot of roads that are not paved, there are a lot of sewer projects that should go forward and the need is greater with the annexed areas. He expressed disappointment in the Council for not getting to the crux of the matter, which is to fund the Library, as the MatSu Borough did, as a borough wide project either a service area or get the Borough involved in it. He testified that getting the $2 million may get the library built, but inquired as to who is going to pay to run the new Library? He thanked the Council.

Sue Mauger, City resident and Chair of the Library Board, shared some of the amazing support enjoyed at the Salmon Bake, during the Street Faire last weekend. She advised that this was a great opportunity, for those who have volunteered on this project, to talk to folks and get feed back on the new building, feed back on how well the campaign was reaching everyone in the community. She shared her favorite part of the day, that of selling some raffle tickets to a young girl who wanted to win the American Girl Doll, the raffle item. Ms. Mauger relayed that she told this young girl that she hoped she would win and the young girl replied that she really did not need the new doll and that what she really wanted was a new Library. Chair Mauger commented on how heartening it is that the youth are so clear that this is what needs to happen in the community. She expressed her feeling that the community has shown amazing support for this project and now what is needed is commitment. She reported that the Library Advisory Board discussed this at the last couple of months and noted Memorandum 04-109, attached to the Ordinance. She read this into the record: "The Library Advisory Board strongly recommends that the Homer City Council adopt Ordinance 04-30 to ask the voters to accept long-term debt of not more than $2.2 million for the completion of the New Library Project: a community project worth $6.5 million. Funders are waiting to see ths public vote of commitment from the Homer Community." She thanked the Council.

Joy Steward, Homer Foundation, advised that she has been involved with the Library project form its beginning by providing technical assistance to the Capital Campaign Committee. She reiterated a little bit of what Mr. Hawfield and Library Advisory Board Chair Mauger had testified regarding the importance of showing commitment on the part of the City of Homer before they can continue with fund raising plans. She noted that there are grants already in place and grants waiting to be in place where funders have made it very clear that granting is totally dependent upon an Ordinance being passed in the community to show City support for the project. She reported that she was personally involved in a conversation with Bill Allen from the USDA wherein, after his site visit in Homer, he made the importance of community commitment very clear; attended meetings with the Rasmuson Foundation wherein they made it very clear that passing a bond issue or indebtedness is paramount to receiving funding from them; and teleconferenced with the Kresge Foundation who do not even want to see an application until a bond issue has been passed. Ms. Steward stressed to all the importance of putting forward an Ordinance that the community buys into, will get passed and noted that timing is critical to pass this tonight to make it on the ballot. She thanked the Council.

Leonard O. Wells, City resident, testified on Ordinance 04-30 and the two substitutes, that 04-30 is the best one and should be modified to indicate the source of the funding. He likened the flaws in the two substitutes as the difference between stealing and theft, stating that passing an Ordinance to use money taxed and approved by the voters for roads for some other purpose, even if approved by the voters, is stealing and theft and that there cannot be a lawsuit, because it would then be legal. He suggested that if the HARP funds are not being used fully then send this back to the tax payers and do away with this quarter or eighth of a percent of sales tax. He voiced his belief that 04-30 should be amended to request one eighth of one percent tax increase, which would show that the citizens are behind the library in paying for it and that if the citizens are not willing to pay more tax then they are not really behind the library and don't really want it. He thanked the Council .

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

Councilmember Stark voiced agreement with those who testified and with those who have been working on this for a lot of years, with the note that Council has also been working on this for a long time and that it is time to send this to the voters.

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

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

Shall the City of Homer borrow funds, which shall be a general obligation of the City, in an amount not to exceed $2,200,000.00 ($2.2 Million) for the purpose of constructing and equipping the new Homer Public Library, once a funding mechanism for the repayment has been defined?

Council discussed the amendment and the concerns expressed regarding not having a funding mechanism defined.

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

FENSKE/BECK - CALLED FOR THE QUESTION.

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

Motion carried.

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

Motion carried.

Councilmember Fenske asked for the Question. Mayor Cushing did not recognize the call for the question.

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

Motion carried.

Primary amendment as amended:

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

Shall the City of Homer borrow funds, which shall be a general obligation of the City, in an amount not to exceed $2,200,000.00 ($2.2 Million) for the purpose of constructing and equipping the new Homer Public Library, once a funding mechanism for the repayment has been defined by the City Council?

FENSKE/BECK - CALLED FOR THE QUESTION.

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

Motion carried.

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

NO: LADD.

(5)Motion carried.



C. Ordinance 04-31, Of the City Council of Homer, Alaska Appropriating $125,725.34 from the HAWSP Account 153 for the Reimbursable Services Agreement (RSA) with the Alaska Department of Transportation for the Bartlett/Hohe Reconstruction Project and Authorizing the City Manager to Execute the RSA and All Other Appropriate Documents. City Manager. Fiscal Note: From HAWSP 153, to Project Account 215-815. (First Reading June 28, 2004, Public Hearing and Second Reading for July 26, 2004. )

There was no Public Testimony.

STARK/FENSKE - MOVED THE ADOPTION OF ORDINANCE 04-31 BY READING OF TITLE.

City Manager responded to Council inquiry regarding the status of this project and funding of this project:

DOT has been hoping to bid within the next couple of weeks, however, it has not been advertised.

DOT has found funding for the storm water issue regarding the enhanced oil and dirt separator. This is about $30,000.00 and the City is not being asked to participate in funding this separator.

The money for the RSA is for agreed upon upgrades to the water system. DOT is going to replace the waterlines. The Council agreed to pay for anything above and beyond just replacing those lines.

Regarding project construction, it will be lucky if there is anything done on the utilities this year.

Mayor Cushing interjected that if the upgrades are designed then the funding should not hold up the project.

VOTE: YES: NON OBJECTION. UNANIMOUS. CONSENT.

Motion carried.

D. Ordinance 04-32(A), Of the City Council of Homer, Alaska Approving and Submitting a One Half of One Percent (0.5%) Increase in the City Sales Tax to the Voters for Voter Approval at the October 5, 2004 Municipal Election and Providing for a Maximum Property Tax Rate in 2005 of 4.50 Mills if the Sales Tax Increase is Approved by the Voters. City Manager. Mayor and Council. (Fiscal Note: Projected net revenue - $470.000.00.) (First Reading June 28, 2004, Public Hearing July 26 and August 9, 2004 and Second Reading for August 9, 2004. )

Stan Welles commented on being sorry to see Councilmember Ladd leaving. He testified his belief that we, as a City, are very deficient in generating revenue with the current tax rate structures, that we have been procrastinating, looking gift horses in the mouth, been very unwise and actually missed many opportunities to generate revenue with the current tax rate structure. He voiced strong opposition to going along with an increase in the rate of any of the tax structures.

Mayor Cushing called for a recess at 8:19 p.m., reconvening the meeting at 8:36 p.m.





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

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

Memorandum 04-110, from City Planner.

Stan Welles testified that this is too good to be true, that he just spoke in terms of generating revenue at the current tax structure and that it is ironic that the proposed Fred Meyer would generate in the neighborhood of $400,000.00, revenue to the City. He noted that this is almost exactly what the proposed tax increase would be, which illustrates, very vividly, how easy it is to generate the revenue without a tax increase, and likened this to a gift horse. He expressed his feeling, as a resident, that of kind of like being whipped to have to make a choice. He encouraged the Council's support for Ordinance 04-33, the 66,000 square foot store footprint, that is consistent with the community support as shown in the recent vote. He suggested that five significant reasons ought to be added to those being considered involving:

1) Demographics - this is a split community of young and old and is becoming a popular area for retirement. The majority of the new home starts are by retired folks. With few exceptions there are few jobs other than entry level for new people entering the job market. He shared some personal experiences with the Pizza Business.

2) Infrastructure - the majority of the new homes are in the service area east of Homer and these people have to use the Homer road system to get to the Sterling Highway. (6) These new area residents use the post office, medical facilities, utilities, library. The residents of Homer pay for the increased infrastructure costs, property tax, which does not solve the underlying demographics of the problem. The residents lose twice. The service area residents consume and spend to the Homer residents' loss. It is stupid, ridiculous and unnecessary that these people go through Homer, use Homer's infrastructure on their way to spend money in Kenai, Soldotna, and Anchorage. From the business point of view, the least costly water and sewage costs are to be found in the Central Business District. Businesses, such as Fred Meyer, are for what the Central Business District was intended. Outside of the City these businesses will have higher utility costs and could have all they wish in an area designated for that purpose.

3) Optimization - when a business comes to town the worst thing to do is to arbitrarily force the business to function inefficiently, which is what is done when store size footprint is hand cuffed or when businesses are pushed out of the Central Business District. If these businesses go to Anchor Point, Homer loses out all the way around, revenue and competition. Optimization is for the sake of the employees and the tax revenues. Homer's budget is extremely tight, yet a town square, new Police Station, new fire station, new Library, new Hockey Rink, new pet welfare center, future water and sewer needs are desired. The water filtration plant is operating full bore, 100%, 24/7 and the turbidity of the water in the reservoir is rising. Where is the revenue if the water filtration plant plugs and shuts down? Things will get exciting in town if that happens.

4) Elections - opposition to any more City debt before more revenue is generated. Before any commitment to any loans there ought to be adequate revenues in the current budget. The bench mark ought to be that the City can make the payments without any further tax increase or anything else. To make a blind faith commitment is foolish.

5) Candidates - some of the Council will be running for City Council again, some may aspire to Mayor and one is seeking election to go to Juneau. If the Council cannot respond consistent with the desires of 60% of the constituents, in two referendums then why should there be a vote for the Councilmembers to continue in office, at all?

He thanked the Council.

Mary Wythe (Beth), resident for 31 years, encouraged support of Ordinance 04-33, 66,000 square foot footprint as supported by the voters of Homer, and voiced opposition to 04-34, which seems to be a direct intention to subvert the desire of the voters of the City. She advised the Council that she also attended the Planning Commission meeting to hear how this process works and to get a better feel for how this issue got to this stage. She commented on listening to a lot of testimonies regarding this particular issue and that the reasons for and against the size increase are as varied as the number of people who come before the Council, adding her appreciation. She voiced her opinion that it does appear that the number of people that are speaking are in favor of the increase, which also resembles the recent vote. She stated that whether the election was confusing, legal or acceptable it seems that quite a majority of Homer has found something important enough to speak out about and the concerns and complaints seem to be expressed by the very vocal minority. She suggested that the silent majority are coming forth to speak in favor of something. She expressed her view that people are sitting here complaining, doing nothing about continuous streams of opportunities for growth that seem to pass Homer by, due to what seems to be intentional road blocks placed by the City, while in the same breath the duly elected representatives seem to say that they are not in opposition to growth. She commented on how every time there is an opportunity to, potentially, bring growth to the City there is a road block or a hurdle to jump over for that growth to be here. She noted that even now, with the vote by the community, a strong majority vote by the people, there seems to be a dragging of the feet. She acknowledged the legal issues, adding that even with the 60% majority it seems that something this basic would move forward a little more rapidly. Ms. Wythe relayed testimony of business owners against the possibility of new stores taking a share of their market, noting the loss of some customers due to this opposition. She emphasized the probability that a large store, providing goods and services that are not available in the community today, would be of benefit in that each dollar that is retained in Homer provides the City additional tax revenues, interjecting that it appears that there are an abundance of things on which to spend these tax revenues. She noted that each new building constructed within City limits provides additional property tax. Ms. Wythe pointed out that it is not a new concept in Homer that new residents want to preserve the community to exactly as it was when they came here and that a community that is unwilling to grow and change with the society is a community that is destined to fail. She reiterated comments she made the last time she was present regarding the school system and small businesses in Homer that do not have the economic basis for support. She addressed comments that the Homer economy cannot support more than one large store, noting that if Homer does not develop the basis for goods and services that can compete with those available in other locations on the lower peninsula what is to bring people to Homer to keep people shopping in Homer. She stated that Homer needs to find ways to promote Homer in an economic growth manner. She voiced her opinion that a Fred Meyer is the least of the issues. She inquired, that if Homer is not available to something as basic as a box store, what is to cause any other form of development to think that Homer is going to be available and open to them coming to the community and putting their dollars back into the community. She emphasized that the issues are for or against community growth, for or against a continued export of the community children due to lack of opportunities and job growth here, it is for or against Homer having a future. She stated that choosing a small footprint size cap is limiting the potential for growth in Homer and that eventually a large retail store will come to the lower peninsula. Will it be where Homer can benefit from it or will it be in Anchor Point or Kachemak City where Homer loses all of the benefit? She voiced support for growth over protectionism.

Bruce Turkington, Homer resident, thanked the Council for forwarding this to public hearing and for referring it to the Planning Commission, which is the right process. He voiced his thought that trying to correct any wrong doing in the process is good and good to do it right and if it takes a few extra weeks to do it then do it and hoped that the end result would be what the community wants. He stated that he and most of his friends and neighbors are confident that the Council will do the right thing at the final passage and that the Council will comply with what the voters have intended. He voiced agreement with, that it has never been an issue of who comes to Homer and that it is for those who do come to operate within the City of Homer. He commented about the Council considering additional sales tax increases, which could, potentially, bring the sales tax up to six percent. He voiced concern about the six percent sales tax competing against business just outside the City limits without that same sales tax is a pretty substantial difference to the profits to the bottom line and provides a lot more margin to work. He advised that, if anyone has not been in the retail business in a long time, the margin are not there like in the old days except for maybe a jewelry store. He stated that it not good for the City of Homer and its existing businesses, for a Homer business to operate in a three to five percent differential in over head versus someone just outside the City limits, who does not help to pay for any of the Homer infrastructure and needs. Mr. Turkington commented that he does not enjoy new competition, but is willing to take on new competition and to go head to head with them to give the people a choice, which is the way it is in the real world. Whatever comes will come, there will be some lost sales in competing products and, finally, the market will work itself out, the better of the evils then the business being outside the City limits where there is a profit advantage. He reported that he (7) currently employs around 45 people in the summer time and about 40 in the winter time. He noted that if they have to go lower margins they will have to cut staff, interjecting that, like many of the larger employers in Homer, they have benefits, retirement programs, which are pretty important. He advised the Council that he has a lot of employees that graduated from Homer High School in the last ten year, amazing how many have stayed. He commented on three of these Homer High School graduates, former employees, who are now Homer Police Officers. He noted the importance of the opportunity to locally employ Homer High School graduates, encourage the Homer youth to stay in Homer, adding that his dad started the business and his son is currently working there, a three generation business. He encouraged the setting of standards and let the businesses come in, operate by Homer standards and that everyone will be able to enjoy the benefits and be on an equal business competition basis. He thanked the Council for moving forward and voiced a hope that they would pass the option of Ordinance 04-33, the one most compliant with the initiative vote.

Frank Griswold commented that tonight the Council has heard a discussion of fiscal zoning with some rather simplistic conclusions. He relayed hearing this called paradal optimalium, Economic 101, where Fred Meyer is coming to town and everything is going to be rosy, with all of the sales tax. He noted that he does not hear the discussion of all of the detrimental effects from Fred Meyer and that it is never that simple. He advised the Council that he heard a comment about wondering why people come to Homer, adding that he really does not think people come to Homer to see Fred Meyer. He commented on the expression, he just heard over and over again, about what the voters intended, advising the Council that what the voters intended in that ballot initiative is what they got. He suggested that the people that come up here and say that they know what they voted for, that it was for Fred Meyer, is maybe showing that they were confused. He noted that what people voted for was, in the Central Business District, a 66,000 square foot footprint structure with, potentially, a 35,000 square foot retail store. He stated that there is nothing unfair about it, that it is a little odd, but is very clear and not in conflict with the City Code and not mutually conflicting. He suggested that if people are saying that they are still confused then that may indicate that the ballot initiative itself was confusing and probably should have been rejected on that basis, but there is no basis for these two new ordinances. He emphasized that the ballot initiative resulted in Ordinance 04-18, a done deal and there never was a referendum repealing the existing code with a reason given that it had not even been printed yet. He stated that, because they jumped the gun and started this initiative they cannot be given the right to go back, after getting the yes vote, and rewrite what the yes is supposed to apply to, and that this just makes no sense to him. He relayed hearing a comment that the Planning Commission had this Ordinance for eighteen months, he asserted that they did not have Ordinance 04-33 or 04-34 for eighteen months and that they worked on Ordinance 04-11, which put the Code in place and is what the Council should uphold and that on a 4/2 vote the Council enacted Ordinance 04-11. He told the Council to stick to it and that there is no basis for these two new Ordinances and that they should be rejected. He thanked the Council.

Ray Kranich commented on the demographics changing, that Mr. Welles had talked about, and that he had a conversation with a local dirt work contractor (8) that the last six foundation excavations that he did within the City of Homer were for new retirees moving to Homer. He also commented on the fact that if a larger store size is allowed there will be increased competition in Homer's market place, that this competition is here today with people having to drive 75 miles each way to spend their money, so the export of dollars exists and in a way those stores in the Kenai/Soldotna area are competing already. He stated that with the Special Election approving the size cap of 66,000 square feet of retail or wholesale building footprint actually makes Homer City Code more restrictive then under Ordinance 04-11 with the development standards. He pointed out that Ordinance 04-11 had many different forms as it developed in the Planning Commission's, very thorough, deliberations. He told the Council that if they approve Ordinance 04-33 a builder or developer would be allowed to utilize a 66,000 square foot footprint building if he gets a zoning permit for a retail or wholesale building and would be allowed to utilize the building for its intended purpose. He emphasized that the voters of Homer were clear that they desired local availability of retail goods through larger stores. He stated that if the 35,000 square foot limit on retail space stays in place it will fly in the face of the desires expressed by the voters and will not have increased local shopping availability. He voiced his opinion that everyone wants balanced development in Homer, the population is increasing, the City facilities and infrastructure is expanding, ie, Animal Shelter, Library, Sewer and Water and so on; so there is an undeniable requirement for expansion in the retail sector to maintain a balance. He urged the Council to follow the instructions of the voters and approve 04-33, which will eliminate disparity or conflicts in the Homer City Code and allow for increased retail development in Homer. He also urged the Council to reject 04-34, which, in his opinion, totally ignores the desires of the voters and to reject 04-34 based on his previous comments. He thanked the Council.

F. Ordinance 04-35, Of the City Council of Homer, Alaska Adopting the Final Homer Non Motorized Transportation and Trails Plan (NMTTP), Amending the Homer Comprehensive Plan to Include the NMTTP and Recommending Adoption by the Kenai Peninsula Borough. (First Reading June 28,2004, Public Hearing July 26, 2004, Second Reading for August 9, 2004.) Page 223

Debbie Poore, City resident and Parks and Recreation Commissioner, addressed the Mayor, Council and City Manager, thanking them for the opportunity to speak on 04-35. She advised that the Commission is very eager for the Council to adopt this plan and that the Council take the necessary steps to have this included in the Homer Comprehensive Plan and to recommend adoption by the Kenai Peninsula Borough. She noted her advocacy for walkabilty for Homer and that she looks forward to working with the Council on developing more trails, the trails system, pedestrian crossings and thereby improving the quality of life in Homer. She thanked the Council.

Amelia Robertson, resident, spoke in support of the trail system being added to the Comprehensive Plan, that she really appreciates the trails system and that, this year, it enabled her to walk to the High School and previously to the Middle School. She informed the Council that she has used the trails for biking and horse trails. She suggested and requested that the trails include equestrian compatibility, which is not more difficult then pedestrian or bicycle trails and can easily be incorporated. She emphasize how great this would be for the equestrian community for ease of travel without interfering with pedestrians and bicyclists. She thanked the Council.

Mayor Cushing introduced Nyssa Baechler, as the Parks and Recreation Commission student representative, that she is in 9th grade and that, potentially, she will serve through her senior year.

Nyssa Baechler, City resident, advised that she frequently walks to and from school and that she is definitely in support of the trails plan and that she would really like it to be in the Homer Comprehensive Plan. She stated that she also is an equestrian and that there are a couple of students her age that have horses right behind the High School, that they loved riding down to the beach and currently the pathway is restricted in that they have to travel along the roads, directly along the traffic, which is dangerous for the horses and the vehicles. She emphasized that the trails being planned are great, that she loves to run around town, because the track is boring and that she and her friends love to walk around town. She said that she loves these great trails and thanked the Council.

G. Ordinance 04-36, Of the City Council of Homer, Alaska Accepting and Appropriating an Alaska Department of Transportation (ADOT) Reimbursement of up to $6,605.00 for Commercial Vehicle Enforcement Inspections and Authorizing the City Manager to Execute the Appropriate Documents. City Manager. HPD. (First Reading June 28, 2004, Public Hearing and Second Reading for July 26, 2004. )

There was no Public Testimony.

FENSKE/YOURKOWSKI - MOVED FOR THE ADOPTION OF ORDINANCE 04-36.

Mayor Cushing did not acknowledge Councilmember Stark's called for the question.

There was no discussion.

VOTES: YES: NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

ORDINANCE(S)

None scheduled.

CITY MANAGER'S REPORT

A. City Manager's Report (Updates and followup; July Employee Anniversaries - Joanne Perret in Finance for 15 years, John Wythe at PWD for 13 years, Barth Troughton at HPD for 9 years, Andy DeVeaux at HPD for 5 years, Brian McCarthy at P/H for 5 years, Lori Sorrows in Finance for 5 years, Steve Smith at HPD for 4 years, Dan Olsen as Janitor for 3 years, Julie Engebretsen in Planning for 2 years, and Beth McKibben in Planning for 1 year ; Public Service Announcement regarding Water Conservation; CORP permit, notice of application for Beluga Slough; Homer Foundation Financial Report; Port and Harbor Director regarding Section 107 Funding; USCG Facility Security Plan for Port of Homer; Department of Fish and Game Ballast Water and Aquatic Nuisance Species; and Peninsula Clarion Article regarding the Scenic Byways Designation.)

There was quire a bit of discussion including comments regarding spit leasing, State Troopers possible move to Anchor Point, and the Water and Sewer Master Plan. Council expressed desire for there to be a State Trooper presence in Homer, whether or not the Troopers establish an Office in Anchor Point.

COMMITTEE REPORT

A. Beach Policy Committee, May 27th synopsis.

B. Road Standards Committee, June 29th synopsis.

C. Town Center Development Committee, June 24th synopsis.

Mayor Cushing read a press release from Public Works regarding water conservation.

Gordon Berg was thanked for all of his work on the Beach Policy Committee and for other contributions to the City and greater area.

Councilmember Yourkowski noted that the Road Standards Committee meets tomorrow, July 27th at 6:30 p.m.

PENDING BUSINESS

None scheduled.

NEW BUSINESS

A. Memorandum 04-105 from City Clerk, Re: New Liquor License for the Frosty Bear Ice Cream Parlor and the Den Restaurant for a Restaurant/Eating Place Public Convenience and Restaurant Designation Permit.

Recommendation: Voice non objection and approval to the new Liquor License for the Frosty Bear Ice Cream Parlor and the Den Restaurant for a Restaurant/Eating Place Public Convenience and Restaurant Designation Permit.

LADD/FENSKE - MOVED TO APPROVE THE RECOMMENDATION OF MEMORANDUM 04-105.

There was no discussion.

VOTE: YES: NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

RESOLUTIONS

A. Resolution 04-68, Of the City Council of the City of Homer, Accepting and Acknowledging the 2004 Homer Area Transportation Plan. Road Standards Committee. Public Works. Planning and Zoning.

Memorandum 04-108 from Road Standards Committee as backup.

(To accept and acknowledge the 2004 Homer Area Transportation Plan, which is the 2001 Plan revised, and to concur with the Road Standards Committee's Recommendation that the 2004 Homer Area Transportation Plan be included into the City of Homer's Comprehensive Plan.)

YOURKOWSKI/FENSKE - MOVED TO POSTPONE RESOLUTION 04-68 UNTIL THE NEXT COUNCIL MEETING.

Mayor Cushing asked the City Clerk if she would note the Council comments, specifically Councilmember Stark's comments, regarding the Plan for the Road Standards Committee.

Councilmember Stark asked to be allowed to make comment on the Plan and was allowed although it does not relate to postponement. There were no objections expressed.

The Cover states Department of Planning and Zoning, which is not a department it is a Division.

Pages 18 and 19: Reconstruct to Skyline Drive from Ohlson Mountain Road to terminus. This is actually called Hudspeth Drive by the State of Alaska.

Second one down in that category. West Hill Road, says Diamond Ridge Road to East End Road. This should be Sterling Highway.

Page 19, number 4.1 (8), Expansion of the airport is limited. Should be deleted.

Page 29, There are a number of intersections that have an "F" category, the worst category. as far as the amount of traffic, this is also on page 30. There are six listed as "F" and one an "E". Indicating that these need a signal.

There was an interjection that this is scheduled in 2021 or in twenty years.

Page 31, It says that DOT/PF shows that a signal is warranted at this intersection at this time.

Page 36, the paragraph at the top that consists of about six lines, is objected to and not agreed with.

The maps are not very definitive as to where the roads are going to be. Was going to wait until this went to the Planning Commission for inclusion in the Comprehensive Plan, but since there is an opportunity tonight to comment on it....

One example Fairview Avenue where it is proposed as somewhat of a collector. The people who live on that street would have a heart attack if they start getting a lot of heavy traffic through there bypassing the main road through town, Pioneer Avenue.

Mayor Cushing inquired, providing this is postponed, of Councilmember Yourkowski if the Road Standards Committee will be discussing this at their meeting tomorrow night.

Councilmember Yourkowski noted that it is not on the agenda, but does think that the agenda should be amended and that he appreciated the comments from Councilmember Stark.

Councilmember Ladd commented on page 32 of the report and inquired if the Road Standards Committee has come up with some kind of a cost factor on what signals would cost. Is this a cost to the City? Or is the State going to assume the cost of signal lights at the Sterling Highway and Lake Street. He noted that he never did get any closure, in his mind, as to City costs and State costs annually to operate the lights.

Councilmember Stark responded that DOT has told him, emphatically, that they would do the complete installation at their cost and that they would do all of the annual operation including electricity and maintenance. This is the intersection of two state highways.

Councilmember Ladd, to the Mayor, said that he would like to also ask the Road Standards Committee, if they could, be prepared to give more, than what they have already, as rationale for a round about versus a stop light.

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

Motion carried.

B. Under agenda approval. Resolution 04-69, Of the City Council Revising the Community Design Manual to Amend the Glossary and Design Review Options to Address Temporary Structures. Mayor.

Planning Staff Report PL 04-57 as backup.

LADD/BECK - MOVED ADOPTION OF RESOLUTION 04-69 BY READING OF TITLE

Revision/Amendment included in the Resolution:

The Commission is authorized to waive specific Design Manual requirements if it finds that

(a) an alternative design represents an equivalent or superior design solution to what would otherwise be achieved by rigidly applying specific requirements, and

(b) the alternative design meets the intent of the general requirement ; or

(c) the structure is of a temporary nature with a designated end date at which time the temporary structure is to be removed; and

(d) there is no time extension for a temporary structure.

Addition to the Glossary:

Temporary Structure - A structure without any foundation or footings and that is removed when the designated time period, activity, or use for which the temporary structure was erected has ceased.

LADD/FENSKE - MOVED TO AMEND ON PAGE 9 (C) TO INSERT IN AFTER THE STRUCTURE, IN BOTH INSTANCES, OR SPECIAL EVENT.

There was some discussion: Planning Commission may consider verbiage such as "Special Use" or "Phased Development or Phased Projects". Concern regarding abuse of use. Planning Commission was encouraged to be concise and precise.

Mayor Cushing recused himself after advising that his client, English Bay Corporation, is considering constructing a building that could be used for the Arctic Winter Games activities. He asked for Council's permission to leave the table.

Councilmember Ladd said that he did not want the Mayor to leave.

He left the table at 9:43 p.m. and handed the gavel to Mayor Pro Tempore Fenske.

There was no objection expressed by the Mayor Pro Tempore or of the Council when the Mayor left the table.

The intent of the verbiage is to advise and assist the Commission with how to word this issue.

It was noted that in the Current City Code, temporary is defined: HCC 21.32.513 Temporary business. "Temporary business" is a business or enterprise that is to be carried on for a period of less than sixty days duration per calendar year within the City. (Ord. 90-36(S) §2, 1990).

City Manager responded to Council inquiry apprizing them of the conversation that he and the Planning Commission Chair had trying to figure out if the bubble (9) could work some how and what temporary means. He advised that temporary and phased project were discussed and would the bubble being on the HEA Waddell property for three years be a temporary building or is it just a different phase of a total project, from what was already permitted. Permits for special events were mentioned. One suggestion was that maybe the bubble could be in place for just the Arctic Winter Games or to cover a curling demonstration event and long enough to cover the Arctic Winter Games and then goes away. If looking at it this way it becomes a temporary event and not a phased project. He advised the Council that the City Code gives the City Manager the ability to write regulations to cover things that are not in the City Code and that the regulations have to be adopted or approved by the City Council after a certain amount of time passes. These regulations would presumably include time limitations and some criteria to judge what's a special event and under what conditions the Manager has the authority to permit them or not permit them.

Council expressed a preference for this to be addressed by Ordinance for codification in the City Code. The Planning Commission needs to grapple with what is short term and what is long term. Not just looking at the structure, also looking at the event.

YOURKOWSKI/BECK - MOVED TO REMAND RESOLUTION 04-69 TO THE PLANNING COMMISSION FOR CONSIDERATION AND COMMENT.

Council expressed consensus that they remand an adopted Resolution so that the Council is giving the Planning Commission direction. Council discussed the motion to remand that the resolution should be adopted and remanded to the Planning Commission for the preparation of an Ordinance if they deem necessary.

NOVAK/YOURKOWSKI- MOVED TO AMEND THE MOTION ON THE FLOOR TO INCLUDE THE COMMENTS OF THE CITY MANAGER WITH REGARDS TO PHASED DEVELOPMENT AND ADVISE THE PLANNING DEPARTMENT TO CHOOSE WHETHER THEY WISH TO SEE THIS AS A RESOLUTION OR AN ORDINANCE.

The amendment, associated project and the processing of this Resolution were discussed. Some of the urgency is gone, according to the City Manager.

YOURKOWSKI/ - CALLED FOR THE QUESTION.

Councilmember Stark objected.

VOTE:(call for the question) YES: NOVAK, LADD, YOURKOWSKI.

NO: BECK, FENSKE, STARK.

Motion failed

VOTE: (secondary amendment to primary amendment 2.) YES: STARK, NOVAK, BECK, FENSKE, LADD, YOURKOWSKI.

Motion carried.

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

Motion carried.



LADD/NOVAK - AMEND RESOLUTION 04-69 TITLE AND ENACTER CLAUSE: A RESOLUTION OF THE CITY COUNCIL DIRECTING THE HOMER ADVISORY PLANNING COMMISSION TO CONSIDER AN AMENDMENT AMENDING THE GLOSSARY AND DESIGN REVIEW OPTIONS TO ADDRESS TEMPORARY STRUCTURES AND THE NOW THEREFORE BE IT RESOLVED THAT THE CITY COUNCIL DIRECTS THE HOMER ADVISORY PLANNING COMMISSION TO CONSIDER REVISION OF THE COMMUNITY DESIGN MANUAL TO ADDRESS TEMPORARY STRUCTURES AS FOLLOWS. (10)

NOVAK/ CALLED FOR THE QUESTION

There was no objection.

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

Motion carried.

VOTE:(primary amendment 1.) NO: FENSKE, LADD, YOURKOWSKI, STARK, NOVAK, BECK.

Motion failed.

There was no further discussion.

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

Motion carried.

Mayor Cushing reported that the Planning Commission did have this Resolution issue before them, twice. He noted that the Homer Hockey Association proposed bubble did not pass on Thursday, July 8, and so Friday, July 9, is when English Bay made the offer to the Homer Hockey Association. This has now taken a whole new twist, with his client, English Bay, possibly building a building that may be a special use.

COMMENTS OF THE AUDIENCE

Audience comments upon any matter.

Frank Griswold said that he found Ray Kranich's comments about the ballot initiative and the resulting Ordinance 04-18 very interesting. He stated that he was sorry that Mr. Kranich had left, because he wanted to hear Mr. Kranich's rebuttal or whatever and that maybe he can comment next time. Mr. Griswold voiced his belief that Mr. Kranich stated that the ballot initiative and the resulting Ordinance made the City Code more restrictive. Mr. Griswold commented that he does not think that anyone questions that Ordinances 04-33 and 04-34 make the Code less restrictive, so how can somebody say that the ballot initiative, which made the City Code more restrictive, dictates that less restrictive Codes should be passed. He suggested that if Mr. Kranich is confused, as a sponsor, then it's no wonder that the public might be confused.

Leonard Wells commented that after hearing some of the comments on Ordinance 04-11 and Ordinance 04-18 and that he does not know what either one of these is except that he assumes that these are related to the box store. He said that if, in fact, these were passed by the Council and given the special election, after these were passed, that the Council might consider whether they want to revisit 04-11 or 04-18 and rescind or reverse their vote.

COMMENTS OF THE CITY ATTORNEY

City Attorney Tans was not present.

COMMENTS OF THE CITY CLERK

City Clerk Calhoun had no comment.

COMMENTS OF THE CITY MANAGER

City Manager Wrede had no comment.

COMMENTS OF THE MAYOR

Mayor Cushing reported that the Coast Guard had a nice demonstration day, took folks out on the Hickory and showed the tending of the buoy, of which the media wrote a story. He voiced appreciation of the Coast Guard thinking of the City in bringing officials and the media along for the demonstration.

COMMENTS OF THE CITY COUNCIL

Councilmember Stark commented that he was in the Town of Truckee, California earlier this month for the wedding of his youngest son. He told the Council that he was quite impressed that this was the official name of the place and investigated this. He reported that, based on the Alaska Constitution, even though he thinks that there would be some advantage and probably make a lot of people happy in the vocal minority to call this the Town of Homer, he does not think this is legally possible. He commented on reviewing the possibility of having a gas distribution assessment district in Homer when the Enstar brings gas to Homer and that it does seem to be permissible under the Homer City Code that those types of assessment districts can be done, which is the way Enstar completes the distribution for Natural Gas. He thanked the Mayor for his efforts regarding the Hockey/Ice rink and, as Councilmember Ladd has said, this is not only for the Arctic Winter Games and is more importantly for the youth of Homer. He emphasized that this is worthy of Council's attention.

Mayor Cushing thanked Councilmember Stark and interjected, just in case in the course of discussion that it was not clear, the rink facility at the HEA property will go ahead it just won't be

squeezed into a two year time line, more like a three or four year period of time. The idea is not to ever abandon what has been proposed at the HEA property site (11), the central location that everybody wants so much.

Councilmember Fenske voiced concern regarding a comment made by Mr. Welles, when he was talking about Council taxing the people in Homer more and about Council raising property taxes. He noted that one of the things the Council has tried to avoid doing is raising property taxes and tries to spread the cost of these area wide facilities over a larger group of people. Councilmember Fenske further noted mechanisms for doing that is using the sales tax and forming a Recreation Service area. He noted that this service area was attempted four or five years ago and was voted down and is still an option for paying for some of these area wide things. He addressed Mr. Kranich's (12)comment that it seemed that something so important being voted on by the people could be sped up a little. Councilmember Fenske voiced his belief that this is on the fastest track for review and public comment. He emphasized that mis information bothers him and that it slights what the Council is trying to do, which is not working against this community in any way and that it is a very big struggle trying to balance everybody's agenda. He stated that he has a great deal of faith in this Council.

Councilmember Ladd thanked Mr. Turkington for voicing appreciation for the City Council working on this (13) and forwarding it to the Planning Commission and that he had said it was the appropriate process and routing. Mr. Ladd advised the Council that he is bringing forward a Resolution for the next Council meeting regarding an "Adopt a Trail" plan, for legal trails, and that Councilmember Beck is a co sponsor. He noted that there already are a lot of individuals doing volunteer trail up keep. He suggested that an "Adopt a Trail" plan would provide for training on how to do regular maintenance on the trails and a way of getting this maintenance done without cost factor to the City and would also provide more ownership by the public in the trails. He announced his resignation as a Councilmember effective upon certification of the October election. He told the Mayor and Councilmembers that he really appreciates any elected official, appreciates the willingness of the Mayor and the Council to state a position and stand behind that position. He stated that he feels good working with this group and that they always walk away as friends.

Councilmember Stark commented about something that comes up periodically, as recently as a couple a minutes ago, about service areas to fund the services that the City of Homer provides to people outside the City limits. He reported that, in doing some research regarding the issue of annexation and KESA and their relationships, the Alaska Constitution states that:

A new service area shall not be established, if consistent with the purposes of this article, the new service can be provided by an existing service area, by incorporation into the City or by annexation to a City.

Councilmember Stark stated that basically the service areas Council is thinking of in the area of a donut around Homer cannot be done under the constitution of the state. He suggested that what the Council is doing by increasing the sales tax accomplishes, basically, the same thing. He said that he would take this opportunity to thank the Honorable Councilmember Rick Ladd for his work, despite the things that happened regarding the large stores, in starting the discussions and thinking of the large stores twenty months ago. He noted that there has been a lot of progress made and that Homer is the leader in the State of Alaska on comprehensive zoning and planning. He commented that there are a lot of others, like Anchorage, starting down that path of revising their zoning standards.

Councilmember Novak thanked Councilmember Ladd for his comments and voiced appreciation for his efforts, although they do, sometimes, have differing views. He noted that the Council are all working for the best for Homer. He voiced appreciation for everyone's effort and that getting everyone's view point is the best way to get the best solution.

Mayor Cushing, sharing his concern, cautioned everyone about characterizing what someone may or may not have said and voiced his preference that Councilmembers state that a comment was made that he/she disagreed with or something to that affect. He emphasized that it is better to make a general reference to statements made.

ADJOURNMENT

There being no further business to come before the Council the meeting was adjourned at 10:39 p.m. The next Regular Meeting is scheduled for Monday, August 9, 2004 at 7 p.m. The next Committee of the Whole meeting is scheduled for Monday, August 9, 2004 at 4 p.m. All meetings scheduled to be held in the Homer City Hall Council Chambers located at 491 E. Pioneer Avenue, Homer, Alaska.




_____________________________________

MARY L. CALHOUN, CMC, CITY CLERK

Approved: _______________


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

1. Reference to Title 21 of the Homer City Code entitled Zoning and Planning.

2. Community Design Manual.

3. Resolution 04-64 will be corrected to reflect the accurate amount as noted in the backup Memorandum and the attached Contract.

4. HARP - Homer Accelerated Roads Program and HAWP - Homer Accelerated Water and Sewer Program.

5. Councilmember Novak issued notice of Reconsideration of the amendments on Tuesday, July 27, 2004.

6. Kachemak Drive and East End Road are State roadways.

7. Spenard Builders

8. Mr. Kranich offered to share the name of the contractor with Councilmembers, personally, later

9. Temporary Structure proposed by the Homer Hockey Association .

10. Amendment reflects additional suggested clarification verbiage by the City Manager with concurrence of the maker and seconder.

11. Waddell Way/Lake Street.

12. Reference to Ordinances 04-33 and 04-34.

13. Reference to Ordinance 04-33 and 04-34.