HOMER CITY COUNCIL

Session 03-14 a Regular Meeting of the Homer City Council was called to order at 7:30 p.m. by Mayor Jack Cushing at the Homer City Hall Council Chambers located at 491 E Pioneer Avenue, Homer, Alaska, and opened with the Pledge of Allegiance.

Councilmember Stark read a statement, prior to the Pledge of Allegiance, by the British Prime Minister in his concluding remarks to the Congress last week, "Tell the world why you are proud of America. Tell them when the Star Spangled Banner starts the Americans get to their feet. Tell them why Americans one and all stand upright and respectful. Not because some state official told them to, but because whatever race, color, creed or class they are, being an American means being free. That's why they're proud.

The Council met in Worksession from 2:09 to 3:45 p.m. regarding communication and relationship as a Council with specific regard to the large store issues, and as a Committee of the Whole from 4:11 to 6:00: p.m .that included about thirty minutes with City's Auditor, the rest of the meeting was on the Regular Meeting Agenda items and continuation of the worksession concerns on large store issues.

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

STAFF: CITY MANAGER WREDE

CITY CLERK CALHOUN

FINANCE DIRECTOR BAUGH

FIRE CHIEF PAINTER

PUBLIC WORKS DIRECTOR MEYER

FINANCE ACCT SUPERVISOR VAUGHN

AGENDA APPROVAL

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

It was noted that the adoption date on Resolution 03-101, should read July 28, 2003. The agenda was approved by consensus of the Council.

PUBLIC COMMENTS UPON MATTERS ALREADY ON THE AGENDA

Public comments upon matters on the agenda with the exclusion of Visitors; Mikunda Cottrell and Company, John M. Bost, Partner, Presentation on 2002 Comprehensive Financial Report, Corp of Engineers, Twenty Year Dredging Plan, and Adrian Raymond, Skateboard Association, and exclusion of the Public Hearing Items: Forest Glen Water and Sewer Final Assessment Roll, Ordinances 03-37 -- 03-41.

Alfonso Lamendola voiced support of Resolution 03-92, creation of the Rosebud Court Sewer Improvements, something that is needed. He commented on this being one of the benefits of having been annexed into the City. He advised that he is building a very large nice new home in that general area. He relayed that the little bit that he has had the opportunity or a need to work with the City, especially the Public Works Department, they have just seemed to bend over backward to do a good job to accommodate what he has been up to, that he thinks that is real good and that he is real happy with the way things are going. He shared his assurance that the Council will do a nice job deciding what has to be done.

Don McNamara thanked the Council for letting KBBI, reference to the Concert on the Lawn, use the ball park, which was awesome. He urged the Council to postpone the Ocean Drive Loop Bluff Erosion Control Project. He asked for a neighborhood meeting with some of the City Councilmembers or whoever they deem would be fit to join the neighbors and discuss the matter before being voted on by the Council. He commented about one of the Councilmembers being on the radio talking about the size of the buildings and that it seemed as though he was talking about the whole general Homer area and not just the Central Business District. Mr. McNamara suggested that there might need to be clarification if this is put to the vote of the people.

Kathy Smith commented on the ballot measure, that it does not address the different business districts and that it needs to address the different districts. She pointed out that putting it to a vote of just the City members does not allow non City residents who run businesses in the City to have any say and that the Council should give this some consideration.

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.)

Mayor Cushing voiced conflict of interest regarding Resolution 03-94, therefore, Mayor ProTempore Yourkowski will read that item.

Councilmember Yourkowski asked for Item B. Ordinance 03-44 to be placed under Ordinances.

Councilmember Kranich asked for Resolution 03-67 to be placed under Resolutions.

A. Homer City Council unapproved meeting minutes of June 23, 2003 Regular Meeting. Recommend approval.

B. Ordinance 03-44, Of the City Council of Homer, Alaska Accepting and Appropriating a Grant of One Hundred and Sixty Seven Thousand Dollars ($167,000.00) from the Transportation and Security Administration (TSA) for Security Gates at the Port of Homer and Authorizing the City Manager to Execute the Appropriate Documents. P/H. City Manager. Fiscal Note: Revenue and Expenditure Acct. 415-915. Recommend introduction and conduct Public Hearing and Second Reading on August 11, 2003.

Memorandum 03-118, from Port/Harbor Director as backup.

Placed under Ordinances.

C. Ordinance 03-45, Of the City Council of Homer, Alaska, Accepting and Appropriating a Matching Grant of One Hundred and Twenty Seven Thousand Three Hundred and Two Dollars ($127,302.00) from the Environmental Protection Agency (EPA) and Authorizing the City Manager to Execute the Appropriate Documents. Planning. City Clerk. Fiscal Note: Revenue and Expenditure Acct: 151-387. Recommend introduction and conduct Public Hearing and Second Reading on August 11, 2003.

Memorandum 03-120, from Planning and Zoning as backup.

D. Ordinance 03-46, Of the City Council of Homer, Alaska Accepting and Appropriating Reimbursable Funds from the United States Coast Guard for Berth Modifications at Pioneer Dock, and Authorizing the City Manager to Execute the Appropriate Documents. City Manager. Finance. PWD. Fiscal Note: Revenue and Expenditure Acct. 415-914. Recommend introduction and conduct Public Hearing and Second Reading on August 11, 2003.

Memorandum 03-128, from Public Works Director as backup.

E. Resolution 03-65, Of the City Council of Homer, Alaska, Awarding the Professional Services Contract for City Wide and Bridge Creek Watershed Imagery to the Firm of AeroMap of Anchorage, Alaska in the Amount of $29,000.00 and Authorizing the City Manager to Execute the Appropriate Documents. Planning. City Clerk. Fiscal Note: Acct. 151-387. Recommend adoption.

Memorandum 03-121, from Planning Zoning as backup.

F. Resolution 03-67, Noting Public Works Acceptance of the Ocean Drive Loop Bluff Erosion Control Improvement Project as Complete, Noting that the Property Owners Take Ownership and Maintenance Responsibilities, Forwarding this Assessment District to Final Assessment Roll and Payment Process and Setting a Public Hearing Date of August 25, 2003. Fiscal Note: Project No. 151-741, Property owners pay one hundred percent. Current project amount is $1,039,875. Recommend adoption.

Memorandum 03-72, from Public Works as backup.

Placed under Resolutions

G. Resolution 03-83, Of the City Council of Homer, Alaska Noting Public Works Acceptance of the Harrington Heights Water and Sewer Improvement Project, Accepting this Project for City Maintenance and Forwarding the Assessment District to the Final Assessment Roll and Payment Process and Setting a Public Hearing Date of August 25, 2003. Public Works. City Clerk. Fiscal Note: 215-817. $721,655.51, estimated property owner assessments are $7,844.08. Recommend adoption.

Memorandum 03-92, from Public Works as backup.

H. Resolution 03-92, Of the City Council of the City of Homer Finding the Need to Create the Rosebud Court Sewer Improvement/Assessment District and Setting the Date for Public Hearing as August 25, 2003. City Clerk Fiscal Note: $397,500.00 75% property owner share 25% HAWSP. Recommend adoption.

I. Resolution 03-93, Of the City Council of the City of Homer Noting the Insufficiency of the Petition for Spruceview, Noview and Wright Street Road Reconstruction and Paving Improvements. City Clerk. Fiscal Note: NA. Recommend adoption.

J. Resolution 03-94, Of the City Council of the City of Homer Finding the Need to Create the Ocean Drive Loop Sewer Improvement/Assessment District and Setting the Date for Public Hearing as August 25, 2003. City Clerk. Fiscal Note: $1,005,750.00, 75% property owner share. 25% HAWSP. Recommend adoption.

Mayor ProTempore Yourkowski read this item.

K. Resolution 03-95, Of the City Council of the City of Homer, Alaska, Noting the Failure of the Saltwater Drive Water and Sewer Improvement/Assessment District. City Clerk. Fiscal Note: NA. Recommend adoption.

L. Resolution 03-96, Of the City Council of Homer, Alaska, Supporting the Development of a Comprehensive Trails Plan for the Homer Area. City Manager. Recommend adoption.

M. Resolution 03-97, Of the City Council of Homer, Alaska, Accepting a Library Grant from the State of Alaska Department of Administration, Alaska Commission on Aging, in the Amount of $8,455.20 for the SFY 2004 Mature Alaskans Seeking Skills Training (MASST) and Accepting a Public Library Assistance Matching Grant from the State of Alaska Department of Education and Early Development, Division of Libraries, Archives and Museums in the Amount of $6,300.00 for Public Library Assistance and Authorizing the City Manager to Execute the Appropriate Documents. Library. Finance. Fiscal Note: Both grants and match are budgeted, Accts. 100.146 and 100.147. Recommend adoption.

Memoranda 03-113 and 03-114 from Library Director as backup.

N. Resolution 03-98, Of the Homer City Council Authorizing the City Manager to Enter into an Agreement with the Kenai Peninsula Borough to Provide Fire and Emergency Medical Services to Kachemak Emergency Service Area for FY 2004 in the Amount of $168,072.00. City Manager. Fiscal Note: Budgeted, Acct. 100.4602. Recommend adoption.

Memorandum 03-115, from City Manager as backup.

O. Resolution 03-100, Of the City Council of Homer, Alaska Awarding the Contract for the Paint and Stain Project 2003, Airport Terminal, Fire and Police Departments to the Firm of A.M. Services of Nikolaevsk, Alaska in the Amount of $55,856.00 and Authorizing the City Manager to Execute the Appropriate Documents. PWD. City Clerk. Fiscal Note: Budgeted in Project Accts. 151-388, 393 and 394. Recommend adoption.

Memorandum 03-119, from Public Works as backup.

P. Resolution 03-101, Of the Homer City Council Designating Signatories of City Accounts, Superseding any Previous Resolution so Designating. (Health Insurance Account from Wells Fargo Alaska to First National Bank Alaska.) Finance. Recommend adoption

Q. Resolution 03-103, Of the Homer City Council Supporting the Kenai Peninsula Borough Economic Development District's Application for a Mini Grant for Tourism Research. City Manager. Recommend adoption.

R. Memorandum 03-109, from Port/Harbor Director, Re: Sealed Bid Sale of Impounded Boats. Recommend acknowledgment.

S. Memorandum 03-110, from Fire Chief, Re: Bid results surplus equipment bid on HVFD Garage Doors. Recommend acknowledgment.

T. Memorandum 03-111, from Mayor, Re: Appointment of Mark Robl to the Beach Policy Committee. Recommend confirmation.

U. Memorandum 03-112, from Mayor, Re: Appointment of Michael Hawfield to the Library Advisory Board. Recommend confirmation.

V. Memorandum 03-116, from Mayor, Nomination of Rick Foster to the Borough Planning Commission. Recommend confirmation.

Memorandum 03-129 from Acting City Planner as backup.

W. Memorandum 03-125, from Port/Harbor Commission, Re: Support for the Installation of the Water Level Station with Meteorological Sensing and Current Sensing Equipment on Pioneer Dock and that Grant Funding be Pursued. Recommend approval.

X. Memorandum 03-126, from Port/Harbor Commission, Re: Priority be Given to Funding the Redecking and Safety Railing of the Old Main Dock, for Public access for Fishing. Recommend approval.

Y. Memorandum 03-127, from City Clerk, Re: Request for Executive Session pursuant to AS §44.62.310(c)(2), Subjects that Tend to Prejudice the Reputation and Character of any Person, Provided the Person May Request a Public Discussion. (City Manager Evaluation.) Recommend approval and conduct under New Business Item A.

BECK/FENSKE - MOVED FOR THE APPROVAL OF THE RECOMMENDATIONS OF THE CONSENT AGENDA.

VOTE: (With the Exclusion of Items B, F and J) YES: NON OBJECTION, UNANIMOUS CONSENT.

Motion carried.

Mayor Cushing handed the gavel to Mayor Pro Tempore Yourkowski.

FENSKE/LADD - MOVED FOR THE APPROVAL OF THE RECOMMENDATION OF RESOLUTION 03-94.

Item J. was approved separately due to the Mayor's expressed conflict of interest.

VOTE: (Item J.) YES: NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

Mayor Cushing received the gavel from Mayor Pro Tempore Yourkowski.

Items B and F were placed on the Regular Agenda.

VISITORS

A. Mikunda Cottrell and Company, John M. Bost, Partner, Presentation on 2002 Comprehensive Financial Report.

John Bost gave an overview of the audit, effects of GASB 34 and the Ocean Drive Loop Bluff Erosion Control Project.

General Fund had a positive increase to Fund Balance of $372,000 as compared to a loss in 2001 of $221,000. (Property taxes up, fire contracts, sales taxes up - many of which were due to the annexation.)

Enterprise Funds - due to GASB 34, depreciation is no longer added back on grant funded fixed assets. As a consequence it may look like the City lost money, but it is because it is presented differently than it has been in prior years. Under the old scenario the enterprise funds would have done better.

Port Fund - In 2002 lost $265,000, including 100% of depreciation with no add back for that portion funded with grants. In 2001 it made $7,600. Operationally speaking it was essentially the same from the Revenues and Operating Expenses. Interest in 2001 was $315,000 more, with the Small Boat Harbor Repairs and Renovations, Pioneer Dock Project and etcetera.

Water and Sewer - No add back for depreciation relating to grants. Virtually the same as 2001, $596,000 loss in 2002 versus a $560,000 in 2001. The add back would have been $1.3 million.

Risk Management Fund lost $122,000 in 2002 versus $184,000 in 2001.

Overall the City loss was exclusive of adding back the depreciation on grants. In 2002 there was a loss of $234,000 versus $397,000 in 2001. The main reason is the Ocean Drive Loop Bluff Erosion Control project, where about $930,000 was spent in 2002. The bonds being issued will be in a different year, which will make 2003 look pretty good with the receipt of the proceeds from the Bond.

He pointed out that absent the Ocean Drive Loop Bluff Erosion Control Project the City actually had a better year than in 2001. He expressed his opinion that the City is in a pretty good position compared to other cities by having more than one revenue source and taxes are increasing due to property value increases.

Mr. Bost reported that the test of controls, grants and systems showed no problems, major weaknesses or cause for concern. He complemented the Finance Department.

B Corp of Engineers, Twenty Year Dredging Plan. George Kalli, COE Planner in Anchorage. Kim Kuk, Dredging Operations Manager - Homer Project. Brenda Kerr, COE Planner in Anchorage.

George Kalli, Planner with the COE in Anchorage, introduced his two co workers, distributed printed materials and elucidated four alternates for the Homer Small Boat Harbor Dredge Materials Management Twenty Year Plan (DMMP); 1 - current operations, 2 - full use of lot 49, two 3s - north site temporary and north site permanent. He asked the Council to review the information and decide on a plan and backup plan to discuss with the COE at a latter date. Mr. Kalli commented that there are differences in the costs on the alternates as noted in the paperwork distributed. He pointed out that alternative 3, site permanent, would be the cheapest plan to meet the twenty year plan and would be to build the berms, a permanent facility, for the dewatering area. He acknowledged that the City typically uses, lot 49, the area for dewatering, for RV camping and such.

C. Adrian Raymond, Skateboard Association.

Adrian Raymond reported on the Skateboard Park and invited the Council to an Open House at the Park in August 16th. Safety Rules, safety gear and associated activities were discussed. It was noted that the park is for skateboard, bikes and roller blades.

Mayor Cushing voicing his concerns about safety, was emphatic and absolute about the park users wearing helmets.

Fire Chief Painter reported, briefly, on the gear being purchased through a Safe Kids program that will be available for purchase at a reduced price.

ANNOUNCEMENTS/PRESENTATIONS/BOROUGH REPORT/COMMISSION REPORTS

A. Certificate of Appreciation to the Homer City Council from Alaska State Forestry.

B. Thank you from the Kenai Peninsula Housing Initiative.

PUBLIC HEARING(S)

A. Forest Glen Water and Sewer Final Assessment Roll.

Phil Needham discussed his letter to the City Council that he wrote about June 1st, recognizing that the Council did not get a chance to address it at their last meeting. He read the letter into the record:

It is a fact that I have subdivided Forest Glen lots: Lot 3, Block 3; Lot 9 Block 3; Lot 7 Block 2, and Lot 10, Block 2. In so doing, I have created an additional 7 lots. This has substantially reduced the assessment for each lot in Forest Glen Subdivision. This is great- except for the fact that all of the other lots received culverts, driveway stub-ins, and sewer/water services. The cost of having the sewer and water stub-ins for lots 3B, 3C, 9B and 9C was $8,970.00 (invoice attached.) This works out to $2,242.50 per lot. This does not include culverts or driveway stub-ins which I estimate at $1,000.00 per lot. This would come to a total of $3,242.50 per lot, or $22,697.50 for these additional seven lots. I believe the City has no choice but to credit this towards my assessments, since I'm paying full assessment for each lot. My lots are approximately one third acre comparted to the typical one acre, so we are being assessed three times more per acre than the other land owners in this subdivision. It only seems reasonable that we should receive the same services and improvements.

Mr. Needham thanked the Council and voiced his hope that they would consider his request.

Mayor Cushing advised that the Council has been approached by others regarding this matter.

B. Ordinance 03-37, Of the City Council of the City of Homer, Amending the Homer City Zoning Map to Rezone Portions of the Urban Residential District (UR) to Central Business District (CBD). Portion of Lots 1-B, and 3 and all of Tract 2 of the New Homer High School No. 2 Subdivision (4060 Heath Street, 604 and 638 East Pioneer Avenue). Planning. (First Reading 06/23/03, Public Hearing and Second Reading 07/28/03.)

There was no public testimony.

KRANICH/LADD - MOVED FOR THE ADOPTION OF ORDINANCE 03-37 BY READING OF TITLE FOR SECOND AND FINAL READING.

Councilmember Kranich commented that this is straightforward and places the same zoning category for the entirety of these lots.

VOTE: YES: NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

C. Ordinance 03-38, Of the City Council of the City of Homer, Alaska Amending the Sign Code, Chapter 21.60 of the Homer City Code. Planning. (First Reading 06/23/03, Public Hearing 07/28/03, Second Reading 08/11/03.)

Jeanne Parker testified that she totally supports the sign ordinance and that a good sign ordinance is just as important as a good building ordinance. An ugly or large sign can be just as offensive and distracting as large ugly buildings. She voiced concern regarding the Save-U-More sign, a free standing sign higher than ten feet that exceeds thirty six square feet. She stated that she has been waiting patiently all summer for that to be moved. She inquired as to where this stands with the ordinance, is the ordinance on hold while this gets discussed and passed, isn't there a current ordinance and why isn't that being enforced. She emphasized that all of these ordinances need to be enforceable and somehow carried through.

D. Ordinance 03-39, Of the City Council of the City of Homer, Alaska Amending Homer City Code 21.32 Definitions, 21.32.080 Building Height; HCC 21.50 General Commercial 2 District, 21.50.030 (q) Conditional Uses and Structures, 21.50.050 (b)(3) Dimensional Requirements; HCC 21.52 Marine Commercial District, HCC 21.52.050 (c) Dimensional Requirements; HCC 21.53 Marine Industrial District, HCC 21.53.050 (b)(2) Dimensional Requirements; and Deleting HCC 21.60.210 Height Regulations Exceptions (b). Planning. (First Reading 06/23/03, Public Hearing 07/28/03, Second Reading 08/11/03.)

Memorandum 03-123 from Acting City Planner.

There was no public testimony.

E. Ordinance 03-40, Of the City Council of Homer, Alaska, Authorizing the Transfer of $290,000.00 from the General Fund Fund Balance to the Health Insurance Fund 600. City Manager. Finance. Fiscal Note: As stated in title and not budgeted. (First Reading 06/23/03, Public Hearing and Second Reading 07/28/03.)

There was no Public Testimony.

FENSKE/BECK - MOVED FOR THE ADOPTION OF ORDINANCE 03-40 BY READING OF TITLE.

City Manager Wrede advised that he wanted to clear up some inaccuracies in an article in a newspaper. The $290,000.00 is not for one year and is to cover losses over a three year period, 2000, 2001, and 2002, and some will be a carry over to 2003. He emphasized that the City does go out every year and check insurance costs to see if there is a private carrier that can do better. The price quotes for this year were $1 million and the City is currently paying approximately $750,000.00. He stated that it is important to know that the City has saved between $2 and $3 million over the year by virtue of the fact that the City is self insured. He reported that all of the City's insurance costs are increasing much faster than anticipated and it is difficult for all municipalities to cope with this increase. Mr. Wrede relayed a conversation he had with the City Manager from Soldotna, while at AML in Girdwood, and that he had indicated that if things continue to go the way they are in about fifteen years insurance costs will be 70% of all personnel costs. The City Manager apprized the Council that staff is trying to reduce costs where possible, that there are a range of options being reviewed, that Personnel Officer Hobbs, has been researching and working along with Finance Director Baugh and insurance companies and other municipalities to see what can be done. He reported that they will be meeting with the employees the first couple of weeks in August to let them know the options, with the goal being to reduce costs as much as feasible, with minimizing impacts. He advised that there is cost share option and a whole range of approaches on the table, and that he will be coming to the Council with a proposal as part of the budget process that will reduce, significantly, the cost of health care.

Finance Director Baugh, in response to Council, clarified that there is a $284,000.00 deficit in the Health Insurance Fund. In the 2002 Audit it shows a General Fund, Fund Balance increase of $372,000.00. The $290,000.00 is going to come out of the General Fund - Fund Balance increase or surplus of $372,000.00.

City Manager Wrede clarified that at the end of 2002 the General Fund had a balance of $372,000.00 higher than projected, a surplus. It is a portion of that money that staff is proposing be moved into the Health Insurance Fund.

Council commented that the Health Insurance is of great concern. The amount of money being spent on employee health insurance is significant. Management was encouraged to continue to seek remedies, to be able to provide adequate health care insurance, yet trying to find out the source of revenues to cover the costs, for this type of package. Council queried why this was not brought to their attention three years ago, pointing out that the smaller amount would have been easier to stomach.

Finance Director Baugh advised that when the deficit was $122,000.00 the rate of self insurance per employee was raised $100.00 per month during the budget process and that this was also the same year of the 9-11 event, which sent the rates through the roof again. He advised that the rates were raised the next budget process an additional $100.00 per month per employee. He emphasized that this appropriation will get the fund out of the hole and bring the account to zero at the end of the year. He pointed out that the big increase is not the health cost, that over the last two years the medical claims have actually zeroed each other out, by going up one year seven percent and down seven percent the next year. The increase in the last couple of years has been all in the reinsurance and third party insurance carriers. The City self insures up to the first $25,000.00, and after that another carrier picks up the cost. He reported that there are only five carriers in the world that do this type of insurance, adding a comment about where they meet and set the rates for the year.

City Manager Wrede informed the Council that there are only two groups, if the City decided to not be self insured, that insure groups as small as the City of Homer and that is Aetna and Blue Cross. He commented that a lot of self insured organizations have stop loss insurance, administration costs are getting very high on the stop loss insurance and that the carriers are planning on raising the City's rates again since they are not making money on the City. He emphasized that at some point this does get to diminishing returns where it really does make sense to go back to private insurance, interjecting that this margin is getting smaller and smaller each year.

Mayor Cushing inquired if the $372,000.00 excess includes the money that is not in the Land Bank, but is semi reserved for the Land Bank.

Finance Director Baugh confirmed that this money is only the revenues that exceeded expenditures in the General Fund. He responded to inquiry by Councilmember Kranich that the City is part of the AML/JIA Insurance Pool for property and general liability insurance, but not health insurance. He advised that the City, in the past, has that it wanted to wait until AML/JIA gets a track record on the health insurance and then will see about joining.

VOTE: YES: NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

F. Ordinance 03-41, Of the City Council of Homer, Alaska Authorizing the Transfer of $80,000.00 from the General Fund Fund Balance for New Accounting Software, Awarding the Contract for Accounting Software to Caselle of Spanish Fork, Utah and Authorizing the City Manager to Execute the Appropriate Documents. City Manager. Finance. Fiscal Note: From General Fund Fund Balance to Computer Upgrade Acct. 151.702, not budgeted. (First Reading 06/23/03,Public Hearing and Second Reading 07/28/03.)

There was no Public Testimony.

FENSKE/LADD - MOVED FOR THE ADOPTION OF ORDINANCE 03-41 BY READING OF TITLE.

In response to Councilmember Fenske, Finance Director Baugh confirmed that this money is appropriated from the $372,000.00 as is the health insurance money and that it will zero out this unexpended revenue.

Councilmembers Ladd and Stark and Finance Director Baugh elucidated the need for this new software.

VOTE: YES: NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

Mayor Cushing called for a recess at 8:55 p.m. reconvening the meeting at 9:11 p.m.

ORDINANCE(S)

A. Ordinance 03-43, Of the City Council Placing a Ballot Measure Addressing the Issue of Limiting the Size and Dimensions of Buildings Used Primarily for Retail or Wholesale Business on the October 7, 2003 General Municipal Election. Kranich/Ladd. (First Reading 07/28/03, Public Hearing 08/11/03, Second Reading 08/11/03. ) Requested by Councilmembers Kranich and Ladd to be the first item under Ordinances.

KRANICH/LADD - MOVED FOR THE ADOPTION OF ORDINANCE 03-43 BY READING OF TITLE FOR FIRST READING AND INTRODUCTION.

Councilmembers Ladd and Kranich relayed the history of this Ordinance, wherein they began by drafting this to be a binding vote, had discussions and input from the City Attorney, who wrote these questions.

There was some discussion regarding placing these advisory questions before the Voters.

KRANICH/LADD - MOVED TO REPLACE QUESTION FIVE, TO READ: SHOULD CONDITIONS AND STANDARDS INTENDED TO MINIMIZE NEGATIVE IMPACTS BE EXTENDED TO ALL BUILDINGS USED FOR ALL PURPOSES? (NOT LIMITED TO RETAIL AND WHOLESALE BUSINESS)?

There was a brief comment.

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

Motion carried.

Discussion continued regarding the pros and cons of these advisory questions, there was some concern expressed on the verbiage. Pros and cons were stated about this being a Council decision and not a decision for the electorate.

Councilmember Fenske reiterated many of the public testimony from the June 23, 2003 Regular Meeting on Ordinance 03-25(S)(A). (pages 9 through 28 of those minutes) He began to relay emails received regarding this same issue.

Mayor Cushing called for a recess at 10:13 p.m., reconvening the meeting at 10:26 p.m.

Councilmember Fenske relayed emails received regarding Ordinance 03-25(S)(A).

FENSKE/STARK - CALLED FOR THE QUESTION.

VOTE:(call for the question) YES: BECK, FENSKE, STARK.

NO: LADD, YOURKOWSKI, KRANICH.

TIE VOTE: MAYOR: NO.

Motion failed, deliberations continue.

Discussion ensued regarding pros and cons of the advisory questions being on the ballot and of the questions themselves. Council, generally, voiced a desire for some rewording to reflect questions pertaining to the separate districts, with the note that the Central Business District is of the ut most concern on the size cap. Amendments to the questions will be available for the public to testify to for the public hearing on August 11th. Council discussed the need for standards. Some of the Council voiced opinion that the cap is a part of the standards.

For the ballot:

The Homer City Council is considering a proposed ordinance that would place limits on the size of buildings used for retail and wholesale businesses in all zoning districts of the City where such businesses are allowed. The City Council asks for your advisory vote on the following questions relating to the proposed ordinance:

1. Should the City Council enact an ordinance that would place maximum size limits on the size of buildings used for retail and wholesale business?

Yes___ No___

2. If an ordinance limiting the size of such buildings is enacted, and the choice of size limitations is either 20,000 square feet or 40,000 square feet, which size limit should be enacted?

20,000 sq. ft.___ 40,000 sq. ft.___

3. If a size limitation of 20,000 square feet is enacted, should the City Council also enact a provision that would allow a building to exceed that size if it meets certain conditions and standards intended to minimize the negative impacts that a larger structure might have on the community? Yes__ No___

4. If a size limitation of 40,000 square feet is enacted, should the City Council also enact a provision that would allow a building to exceed that size if it meets certain conditions and standards intended to minimize the negative impacts that a larger structure might have on the community? Yes__ No___

5 Should conditions and standards intended to minimize negative impacts be extended to all buildings used for all purposes? If such building size limitations are enacted, should the limits extend to all buildings used for all purposes (not limited to retail and wholesale business)?

Yes___ No___

VOTE:(main motion as amended) YES: LADD, STARK, KRANICH.

NO: YOURKOWSKI, BECK FENSKE.

TIE VOTE: MAYOR: YES.

Motion carried.

STARK/KRANICH - MOVED FOR RECONSIDERATION.

There was a comment that reconsideration is not needed, specifically since this is introduction.

VOTE:(reconsideration) YES: KRANICH, BECK, FENSKE, LADD, YOURKOWSKI, STARK.

Motion carried.

VOTE: (main motion as amended) YES: STARK, KRANICH, LADD.

NO: BECK, FENSKE, YOURKOWSKI.

TIE VOTE: MAYOR: YES.

Motion carried.

B. Ordinance 02-42(S)(A), Of the City Council of the City of Homer, Alaska Amending the Homer City Zoning Map to Zone Portions of the Annexed Area Identified as Study Area #1. City Manager. (First Reading 10/14/02, Public Hearing 10/28/02 rescheduled to 11/04/02, Second Reading 11/25/02, postponed to 12/09/02, postponed to 01/27/03, and main motion as amended and pending amendment postponed to 03/10/03, postponed further to 06/23/03, postponed further to 07/14/03 no amendments on the floor, Note: 07/14/03 meeting was canceled, forwarded to 07/28/03.)

Main motion as amended and postponed on 06/23/03. FENSKE/BECK - MOVED FOR THE ADOPTION OF ORDINANCE 02-42 (S)BY READING OF TITLE FOR SECOND AND FINAL READING (The amendment removed the zoning designations on Exhibit B.).

Council commented that adopting the zoning for Study Area #1 would satisfy the requirement pertaining to zoning of annexed areas. Sometime in the future, when Council has more information, this area can be zoned more densely. Desire was expressed for less general commercial area than is there, since this is the gateway area to Homer. This zoning is in the interest of all citizens of Homer, not necessarily in the financial interest of those who live in Study Area #1. There is strong indication that at some point the Planning Commission is going to entertain the idea of an overlay district for this gateway area. It was suggested that at that time there be some conditions applied to some of these properties whose owners wish their property to be zoned commercial. Council questioned the logic for the sliver of property, referred to as #17, being zoned General Commercial 1, when the large parcel to the northward of it is zoned open space recreational.

Mayor Cushing called for a "stand down" at 11:07 p.m. to ascertain ownership of the sliver numbered 17.

Staff reported/advised that the ownership of #17, is in private ownership.

Council commented about zoning the privately owned property, even this small sliver, to rural residential.

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

Motion carried.

C. Ordinance 03-25(S)(A), Amending the Homer Zoning Ordinance to Limit the Size and Dimensions of Buildings used primarily for Retail ro Wholesale Business in the Central Business District, General Commercial 1, General Commercial 2, Marine Commercial and Marine Industrial Districts and Adding to HCC 21.32 Definitions - Retail Sales and Wholesale Establishment. City Council. Planning Commission..(First Reading 04/28/03, Public Hearings 05/12/03 and 05/27/03,Second Reading for 06/09/03, postponed on 06/09/03 to 06/23/03 for additional public hearing and for Second Reading, forwarded to 07/14/03 due to absent Councilmember on 06/23/03, Note: 07/14/03 meeting was canceled, forwarded to 07/28/03.)

Memorandum 03-122, from Acting City Planner.

Main motion as amended and postponed on 06/09/03. FENSKE/LADD - MOVED TO ADOPT ORDINANCE 03-25 BY READING OF TITLE FOR SECOND AND FINAL READING.

Amendment 1. To substitute 03-25 with 03-25.

Amendment 2. To replace subsections entitled Building Area and Dimensions - Retail and Whole sale in sections one, two, three, four and five with the following:

1. Any building the main use of which is retail business, wholesale business, or a combination of the two shall not exceed 40,000 square feet of floor area.

2. Buildings situated upon a single tract under the same ownership shall be combined for purposes of this limitation.

3. A conditional use permit or variance may be granted that would allow a building to exceed the limit of this subparagraph by the planning commission provided that all conditions, impact standards and procedures set by the city of homer as apply to the intended development are met. (Does not apply to sections six and seven.)

YOURKOWSKI/FENSKE - MOVED TO AMEND ORDINANCE 03-25(S)(A) BY REPLACING SUBSECTIONS ENTITLED BUILDING AREA AND DIMENSIONS - RETAIL AND WHOLESALE WITH THE FOLLOWING LANGUAGE, NOTING THAT COPIES HAVE BEEN DISTRIBUTED:

SECTION 1. SECTION 21.48.040 PERTAINING TO THE CENTRAL BUSINESS DISTRICT IS HEREBY AMENDED TO READ AS FOLLOWS: (AMENDING D)

D. BUILDING AREA AND DIMENSIONS - RETAIL AND WHOLESALE.

1. ANY BUILDING THE MAIN USE OF WHICH IS RETAIL BUSINESS, WHOLESALE BUSINESS, OR A COMBINATION OF THE TWO, SHALL NOT EXCEED TWENTY THOUSAND SQUARE FEET OF FLOOR AREA.

2. NOTWITHSTANDING ANY OTHER PROVISION OF THIS SECTION OR THIS CODE, NO CONDITIONAL USE PERMIT OR VARIANCE MAY BE GRANTED THAT WOULD ALLOW A BUILDING TO EXCEED THE LIMITS OF THIS SUBPARAGRAPH (D).

SECTION 2. SECTION 21.49.040 PERTAINING TO THE GENERAL COMMERCIAL 1 DISTRICT IS HEREBY AMENDED TO READ AS FOLLOWS: (AMENDING D)

D. BUILDING AREA AND DIMENSIONS - RETAIL AND WHOLESALE.

1. ANY BUILDING THE MAIN USE OF WHICH IS RETAIL BUSINESS, WHOLESALE BUSINESS, OR A COMBINATION OF THE TWO, SHALL NOT EXCEED FORTY THOUSAND SQUARE FEET OF FLOOR AREA.

2. NOTWITHSTANDING ANY OTHER PROVISION OF THIS SECTION OF THIS CODE, NO CONDITIONAL USE PERMIT OR VARIANCE MAY BE GRANTED THAT WOULD ALLOW A BUILDING TO EXCEED THE LIMITS OF THIS SUBPARAGRAPH (D)

SECTION 3. SECTION 21.50.050 PERTAINING TO THE GENERAL COMMERCIAL 2 DISTRICT IS HEREBY AMENDED TO READ AS FOLLOWS: (AMENDING C)

C. BUILDING AREA AND DIMENSIONS - RETAIL AND WHOLESALE.

1. ANY BUILDING THE MAIN USE OF WHICH IS RETAIL BUSINESS, WHOLESALE BUSINESS, OR A COMBINATION OF THE TWO, SHALL NOT EXCEED FORTY THOUSAND SQUARE FEET OF FLOOR AREA.

2. NOTWITHSTANDING ANY OTHER PROVISION OF THIS SECTION OF THIS CODE, NO CONDITIONAL USE PERMIT OR VARIANCE MAY BE GRANTED THAT WOULD ALLOW A BUILDING TO EXCEED THE LIMITS OF THIS SUBPARAGRAPH (C)

SECTION 4. SECTION 21.52.050 PERTAINING TO THE MARINE COMMERCIAL DISTRICT IS HEREBY AMENDED TO READ AS FOLLOWS: (AMENDING D)

D. BUILDING AREA AND DIMENSIONS - RETAIL AND WHOLESALE.

1. ANY BUILDING THE MAIN USE OF WHICH IS RETAIL BUSINESS, WHOLESALE BUSINESS, OR A COMBINATION OF THE TWO, SHALL NOT EXCEED TWENTY THOUSAND SQUARE FEET OF FLOOR AREA.

2. NOTWITHSTANDING ANY OTHER PROVISION OF THIS SECTION OF THIS CODE, NO CONDITIONAL USE PERMIT OR VARIANCE MAY BE GRANTED THAT WOULD ALLOW A BUILDING TO EXCEED THE LIMITS OF THIS SUBPARAGRAPH (D).

SECTION 5. SECTION 221.53.050 PERTAINING TO THE MARINE INDUSTRIAL DISTRICT IS HEREBY AMENDED TO READ AS FOLLOWS: (AMENDING C)

C. BUILDING AREA AND DIMENSIONS - RETAIL AND WHOLESALE.

1. ANY BUILDING THE MAIN USE OF WHICH IS RETAIL BUSINESS, WHOLESALE BUSINESS, OR A COMBINATION OF THE TWO, SHALL NOT EXCEED TWENTY THOUSAND SQUARE FEET OF FLOOR AREA.

2. NOTWITHSTANDING ANY OTHER PROVISION OF THIS SECTION OF THIS CODE, NO CONDITIONAL USE PERMIT OR VARIANCE MAY BE GRANTED THAT WOULD ALLOW A BUILDING TO EXCEED THE LIMITS OF THIS SUBPARAGRAPH (C).

SECTION 8. ABSENT FURTHER ACTION BY THE CITY COUNCIL, THE PROVISIONS OF THIS ORDINANCE SHALL LAPS AND BE OF NO FURTHER EFFECT AS OF SIX MONTHS AFTER THE EFFECTIVE DATE OF THIS ORDINANCE, OR AS OF ADOPTION BY THE CITY COUNCIL OF AN ORDINANCE ADOPTING STANDARDS AND PROCEDURES FOR CONSTRUCTION OF RETAIL AND WHOLESALE BUILDINGS WITH TWENTY THOUSAND SQUARE FEET OR MORE OF FLOOR AREA, WHICHEVER TIME PERIOD IS SHORTER.

SECTION 9. THIS ORDINANCE IS OF A TEMPORARY NATURE AND SHALL NOT BE INCLUDED IN THE CITY CODE.

There was very brief comment by Councilmember Yourkowski in favor of the amendment.

VOTE:(primary amendment 1.) YES: FENSKE, YOURKOWSKI, BECK.

NO: LADD, STARK, KRANICH.

TIE VOTE: MAYOR: YES:

Motion carried.

LADD/KRANICH - MOVED TO AMEND ALL AREAS WHICH WE JUST AMENDED THAT THE LANGUAGE WHERE IT SAYS TWENTY THOUSAND SQUARE FEET BE CHANGED TO REFLECT FORTY THOUSAND SQUARE FEET.

VOTE:(primary amendment 2.) YES: LADD, STARK, KRANICH.

NO: BECK, FENSKE, YOURKOWSKI.

TIE VOTE: MAYOR: NO.

Motion failed.

KRANICH/LADD - MOVED TO POSTPONE ACTION ON ORDINANCE 03-25(S)(A) UNTIL AFTER FINAL ACTION ON ORDINANCE 03-43, IF ORDINANCE 03-43 FAILS ACTION SHALL BE TAKEN AT THAT TIME IF A FULL COUNCIL IS PRESENT OR AT THE FIRST MEETING THEREAFTER WHEN A FULL COUNCIL IS PRESENT. IF ORDINANCE 03-43 PASSES NO FURTHER ACTION SHALL BE TAKEN UNTIL THE RESULTS OF THE OCTOBER 7 GENERAL ELECTION ARE CERTIFIED AND A FULL COUNCIL IS PRESENT.

Pros and cons of postponement were discussed.

VOTE:(postponement) YES: KRANICH, LADD, STARK.

NO: BECK, FENSKE, YOURKOWSKI.

TIE VOTE: MAYOR: NO.

Motion failed.

LADD/KRANICH - MOVED TO AMEND UNDER GC1 DISTRICT SECTION TWO, THAT TWENTY THOUSAND BE CHANGED TO FORTY THOUSAND SQUARE FEET.

It was noted that this was one of the first recommendations that came to the Council from the Planning Commission that the cap on building size in the GC1 district be forty thousand square feet.

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

Motion carried.

LADD/STARK - MOVED TO AMEND UNDER GC2, SAME AS GC1 TWENTY TO FORTY.

There was no discussion.

Mayor Cushing recognized the informal call for unanimous consent by Councilmember Fenske, there was no objection.

VOTE:(primary amendment 4.) YES: UNANIMOUS CONSENT. NON OBJECTION.

Motion carried.

Mayor Cushing noted that this was a recommendation from Planning and Zoning as well.

Section 7. was discussed, in that there are no longer any unzoned areas within the City of Homer. The original intent of this section was to address Study Area #1, which was unzoned at the time this Ordinance was introduced. Council expressed the opinion that they were covered in the section of the Homer City Code that addresses zoning of annexed areas.

KRANICH/BECK - MOVED TO DELETE THE ENTIRE SECTION 7. (To be renumerated, housekeeping as deemed necessary.)

There was brief comment that this section is no longer needed.

STARK/FENSKE/BECK - CALLED FOR THE QUESTION.

VOTE:(question) NO OBJECTION. UNANIMOUS CONSENT.

Motion carried.

VOTE:(primary amendment 5.) YES: LADD, YOURKOWSKI, STARK, KRANICH, BECK, FENSKE.

Motion carried.

YOURKOWSKI/STARK - MOVED TO AMEND, SECTION D. OF SECTIONS 1, 2, AND 4 AND ALL OF HIS NUMBER 2. AND NO NONCONFORMING USE OR STRUCTURE MAY BE EXPANDED IN ANY MANNER THAT WOULD INCREASE ITS NONCONFORMANCE WITH THE LIMITS OF SUBPARAGRAPH D. INSERTED IN SECTION 1(D), SECTION 2(D), SECTION 3(C), SECTION 4(D) AND SECTION 5(C).

This is to clear up some ambiguities in the City Code as recommended by the City Attorney, Gordon Tans. There was a concern expressed that this may need to be a stand alone ordinance, in that Ordinance 03-25(S)(A) is a six month ordinance.

VOTE: (primary amendment 6.) VOTE: YES: NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

FENSKE/YOURKOWSKI - MOVED TO SUSPEND THE RULES TO GO PAST TWELVE TO COMPLETION OF BUSINESS.

VOTE:(suspend the rules to go past midnight) YES: FENSKE, YOURKOWSKI, STARK, KRANICH, BECK.

NO: LADD

Motion carried.

Mayor Cushing called for a recess at 11:53 p.m. to consult with the City Attorney regarding a code ordinance being deemed non code, reconvening the meeting at 12:15 a.m.

Mayor Cushing advised that City Attorney Tans recommended that Section 9 be amended so that it shows this is a code ordinance, yet of a temporary nature. This will facilitate codification.

City Manager Wrede added that the Ordinance will sunset pursuant to Section 8, unless action is taken to continue it.

YOURKOWSKI/FENSKE - MOVED TO AMEND ORDINANCE 03-25(S)(A) SECTION NINE, THIS ORDINANCE IS OF A TEMPORARY NATURE.

VOTE: (amendment 7.) YES: NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

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

NO: LADD, KRANICH.

Motion carried.

YOURKOWSKI/FENSKE - MOVED TO RECONSIDER ORDINANCE 03-25(S)(A).

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

Motion carried.

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

NO: LADD, KRANICH.

Motion carried.

Amended sections 1-9.

Section 1. Section 21.48.040 pertaining to the Central Business District is hereby amended to read as follows: (amending d)

d. Building Area and Dimensions - Retail and Wholesale.

1. Any building the main use of which is retail business, wholesale business, or a combination of the two, shall not exceed twenty thousand square feet of floor area.

2. Notwithstanding any other provision of this section or this code, no conditional use permit or variance may be granted that would allow a building to exceed the limits of this subparagraph (d) and no nonconforming use or structure may be expanded in any manner that would increase its nonconformance with the limits of subparagraph(d).

Section 2. Section 21.49.040 pertaining to the General Commercial 1 District is hereby amended to read as follows: (amending d)

d. Building Area and Dimensions - Retail and Wholesale.

1. Any building the main use of which is retail business, wholesale business, or a combination of the two, shall not exceed forty thousand square feet of floor area.

2. Notwithstanding any other provision of this section of this code, no conditional use permit or variance may be granted that would allow a building to exceed the limits of this subparagraph (d) and no nonconforming use or structure may be expanded in any manner that would increase its nonconformance with the limits of subparagraph(d).

Section 3. Section 21.50.050 pertaining to the General Commercial 2 District is hereby amended to read as follows: (amending c)

c. Building Area and Dimensions - Retail and Wholesale.

1. Any building the main use of which is retail business, wholesale business, or a combination of the two, shall not exceed forty thousand square feet of floor area.

2. Notwithstanding any other provision of this section of this code, no conditional use permit or variance may be granted that would allow a building to exceed the limits of this subparagraph (c) and no nonconforming use or structure may be expanded in any manner that would increase its nonconformance with the limits of subparagraph(c).

Section 4. Section 21.52.050 pertaining to the Marine Commercial District is hereby amended to read as follows: (amending d)

d. Building Area and Dimensions - Retail and Wholesale.

1. Any building the main use of which is retail business, wholesale business, or a combination of the two, shall not exceed twenty thousand square feet of floor area.

Section 5. Section 221.53.050 pertaining to the Marine Industrial District is hereby amended to read as follows: (amending c)

c. Building Area and Dimensions - Retail and Wholesale.

1. Any building the main use of which is retail business, wholesale business, or a combination of the two, shall not exceed twenty thousand square feet of floor area.

2. Notwithstanding any other provision of this section of this code, no conditional use permit or variance may be granted that would allow a building to exceed the limits of this subparagraph (c) and no nonconforming use or structure may be expanded in any manner that would increase its nonconformance with the limits of subparagraph(c).

Section 7 was deleted.

Replace Section 8 and create Section 9 as follows:

Section 8. Absent further action by the City council, the provisions of this ordinance shall laps and be of no further effect as of six months after the effective date of this ordinance, or as of adoption by the City Council of an ordinance adopting standards and procedures for construction of retail and wholesale buildings with twenty thousand square feet or more of floor area, whichever time period is shorter.

Section 9. This ordinance is of a temporary nature.

D. Ordinance 03-36, Of the City of Homer Amending Homer City Code Title 5, Health and Public Safety, By Adding a New Chapter, 5.05, Smoking Prohibited in City Structures, Vehicles and Watercraft. Ladd. Kranich. (First Reading 06/09/03, Public Hearing 06/23/03, Second Reading 07/28/03.)

LADD/KRANICH - MOVED FOR THE ADOPTION OF ORDINANCE 03-36 BY READING OF TITLE FOR SECOND AND FINAL READING.

LADD/KRANICH - MOVED TO AMEND LINE FIFTY FOUR, PAGE FOUR SEVENTY, TO INSERT AFTER PORT AND HARBOR BUILDINGS, "AIRPORT TERMINAL" AND THEN THE SENTENCE FINISHES, AND ANY OTHER BUILDINGS OWNED OR OCCUPIED BY THE CITY.

There was no discussion.

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

Motion carried.

Sentence now reads: This prohibition applies to City Hall, the Police Station, the Fire Hall, Public Works Facilities, Animal Shelter, Library, Port and Harbor Buildings, Airport Terminal and any other buildings owned or occupied by the City.

LADD/KRANICH - MOVED TO AMEND LINE SIXTY TWO, CITY SHALL DESIGNATE A

"SMOKING AREA" OUTSIDE CITY OWNED BUILDINGS AND FACILITIES, IN WHICH AREAS FOR SMOKING BY NON-MINORS SHALL BE ALLOWED, ADD "A SMOKING AREA SHALL BE SITUATED NO CLOSER THAN FIFTEEN FEET FROM PREMISE ENTRANCES, OPEN DOORS OR WINDOWS."

There was a short comment regarding the impact of smoke to non smokers at entrances, and the smoke entering open windows and doorways.

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

Motion carried.

It was commented that most of the City facilities are sole source for the information or service that a member of public needs or wants and that the public does not have a choice as they would with private businesses.

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

Motion carried.

Section now reads:

5.05.030 Prohibition. No person shall smoke any tobacco product and no person shall smoke any other substance in any public building owned or operated by the City or of its departments. This prohibition applies to City Hall, the Police Station, the Fire Hall, Public Works Facilities, Animal Shelter, Library, Port and Harbor Buildings, Airport Terminal and any other buildings owned or occupied by the City. This prohibition also applies to all City owned or leased vehicles or watercraft as follows:

a. Smoking in any form is objectionable to many and shall not be permitted in any public buildings owned by the City of Homer or leased by the City as Lessee and in all motor vehicles or watercraft owned, rented, leased or used by the City of Homer, or by any departments, council, commissions, or other agencies of the City. This would exclude public sidewalks, streets, public parks, other outdoor areas, and leased properties in which the City is the Lessor.

b. The City shall designate a "smoking area" outside City owned buildings and facilities, in which areas for smoking by non-minors shall be allowed. A smoking area shall be situated no closer than fifteen feet from premise entrances, open doors or windows.

c. Smoking shall be prohibited on City owned properties located within fifty (50) feet of a petroleum fuel dispensing facility.

d. The person in charge of City areas listed above shall make reasonable efforts to prevent smoking in those areas in which smoking is not allowed and shall post "No Smoking and Warning" signs conspicuously in these areas.

e. The person in charge of a City area listed above shall post signs in those areas in which smoking is allowed.

f. It is the intention of the Homer City Council that the provisions of this Ordinance shall become and made part of the Homer City Code, Homer, Alaska, and the sections of this ordinance may be renumbered to accomplish such intention:

E. Consent Agenda Item B. Ordinance 03-44, Of the City Council of Homer, Alaska Accepting and Appropriating a Grant of One Hundred and Sixty Seven Thousand Dollars ($167,000.00) from the Transportation and Security Administration (TSA) for Security Gates at the Port of Homer and Authorizing the City Manager to Execute the Appropriate Documents. P/H. City Manager. Recommend introduction and conduct Public Hearing and Second Reading on August 11, 2003.

Memorandum 03-118, from Port/Harbor Director as backup.

KRANICH/STARK - MOVED FOR THE ADOPTION OF ORDINANCE 03-44 BY READING OF TITLE FOR FIRST READING AND INTRODUCTION.

Council expressed concern regarding the negative impact these security gates would have to visitors, tourists, cruise ships and the like.

City Manager Wrede advised that this is a mandate from the Federal Government if Homer wants the Coast Guard and tour ships here. He noted that DOT and the Ferry system is just as concerned. This is a crash proof gate. These gates will be used only in times of high alert levels.

Finance Director Baugh noted further that the original plan was to put a security gate at the Deep Water Dock, which cut the grant from $250,000.00 to $167,000.00. The blockade on the Old Main Dock will be a cement barricade. Most of the time the gates will be wide open.

VOTE: YES: NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

CITY MANAGER'S REPORT

A. City Manager's Report (Updates/Follow-Up, Clerk Memo/TODs Program, Chamber of Commerce/Marketing Services and Visions for Homer, Port and Harbor Director Memo/Water Level Station, Letter to University/Consortium Library Proposal, City of Homer Wetlands Program/Work Plan & Information, University Letter/City Hall Proposal, Big Brothers Big Sisters Letter, FEMA/Acceptance into National Flood Insurance Program.)

B. Game Permit Report.

The Manager's Report was discussed.

COMMITTEE REPORT

A. Beach Policy Committee, unapproved synopses of June 19 and July 8, 2003.

B. Councilmember Fenske reported on the AML Legislative Committee.

Councilmember Fenske commented on the need for a training session for the Council and Commissions regarding Robert's Rules of Order, OMA etcetera.

PENDING BUSINESS

NEW BUSINESS

A. Memorandum 03-124, from City Clerk, Re: City Manager Evaluation. Executive Session pursuant to AS §44.62.310(c)(2), Subjects that Tend to Prejudice the Reputation and Character of any Person, Provided the Person May Request a Public Discussion.

Recommendation: Conduct the evaluation in Executive Session and make a statement or take action thereafter.

Placed as the last item of business.

RESOLUTIONS

A. Resolution 03-90, Of the City Council of Homer, Alaska Authorizing the Formation of the Town Center Development Committee and Supporting its Mission. Beck. (Main motion on the floor for adoption as postponed on 06/23/03.)

A.1. Resolution 03-90(S), Same Title. Submitted as requested on June 23, 2003.

Main Motion as postponed on June 23, 2003. BECK/FENSKE - MOVED TO APPROVE RESOLUTION 03-90 BY READING OF TITLE.

BECK/YOURKOWSKI - MOVED TO AMEND TO SUBSTITUTE RESOLUTION 02-90(s).

There was a very brief discussion, specifically about the changes.

WHEREAS, future project goals (changed from objectives) should include the following:

Utilizing all plans and ideas proposed thus far, develop two or three proposals to recommend to the Planning Commission by January 2005. (Did read: Utilizing all plans and ideas proposed thus far, develop concrete recommendations for a trails system, road system, and parking in Town Center.)

Develop concrete recommendations for Town Center thematic approaches and elements by January 2006. (Did read: Develop concrete recommendations for Town Center thematic approaches and elements.)

Continue to facilitate discussion among interested citizens and act in an advisory capacity at the direction of the Planning Commission until the Planning Commission makes its final recommendation to the Homer City Council. (Did read: Continue to facilitate discussion and cooperation among interested parties, and disseminate information to the community. (Did read: Continue to facilitate discussion and cooperation among interested parties, and disseminate information to the community; and two others: Develop a draft Cooperative Agreement with key stakeholders in Town Center, to facilitate desired development. Research options and make recommendations for funding mechanisms to achieve the Town Center envisioned by planners)

NOW, THEREFORE, BE IT RESOLVED, by the Homer City Council that the work of the original "Town Square Project" shall continue under the name Town Center Development Committee, with the purpose of achieving the goals (did read objectives) set forth above; and

BE IT FURTHER RESOLVED that the area under consideration by the Town Center Development Committee be that area within the boundaries of Main Street and Heath Street, and Pioneer Avenue and the Sterling Highway; and

BE IT FURTHER RESOLVED that the Town Center Development Committee shall prepare written reports and provide a presentation of findings and recommendations to the City Planner and the Planning Commission on a regular basis; and ( Did read: BE IT FURTHER RESOLVED that the goal of the Town Center Development Committee shall be to accomplish these goals; and BE IT FURTHER RESOLVED that the Town Center Development Committee shall prepare a written report and provide a presentation of findings and recommendations to the Planning Commission and the Homer City Council at the close of the project; and)

BE IT FURTHER RESOLVED that the Mayor shall nominate and the City Council approve the members of the Town Center Development Committee. (Did read: BE IT FURTHER RESOLVED that the Mayor shall appoint the members of the Town Center Development Committee.)

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

Motion carried.

Councilmember Beck restated the essential differences as noted above, in the whereas and items 1 - 3.

Councilmembers voiced appreciation for the verbiage in the substitute.

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

Motion carried.

B. Resolution 03-99, Of the City Council of the City of Homer, Alaska Accepting the 2002 Comprehensive Annual Financial Report and Audit and Financial Statements and Acknowledging the Management Letter Submitted by the City's Independent Auditor, Mikunda, Cottrell, & Co. Finance. City Manager.

LADD/KRANICH - MOVED FOR THE ADOPTION OF RESOLUTION 03-99 BY READING OF TITLE.

Finance Director Baugh responded to Council inquiry that the audit is required by Title 29 and the contract is $38,000.00 for the audit.

VOTE: YES: NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

C. Consent agenda item F. Resolution 03-67, Noting Public Works Acceptance of the Ocean Drive Loop Bluff Erosion Control Improvement Project as Complete, Noting that the Property Owners Take Ownership and Maintenance Responsibilities, Forwarding this Assessment District to Final Assessment Roll and Payment Process and Setting a Public Hearing Date of August 25, 2003. Recommend adoption.

Memorandum 03-72, from Public Works as backup.

LADD/FENSKE - MOVED FOR THE ADOPTION OF RESOLUTION 03-67 BY READING OF TITLE.

There will be a neighborhood meeting scheduled for the City Manager, Finance Director and Public Works Director to meet with the Land Owners. A Request for Executive Session will be placed on the August 11th agenda.

VOTE: NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

D. New Business Item A. Memorandum 03-124, from City Clerk, Re: City Manager Evaluation. Executive Session pursuant to AS §44.62.310(c)(2), Subjects that Tend to Prejudice the Reputation and Character of any Person, Provided the Person May Request a Public Discussion.

Recommendation: Conduct the evaluation in Executive Session and make a statement or take action thereafter.

STARK/LADD - MOVED TO SUSPEND THE RULES TO MAKE THIS THE LAST ITEM ON THE AGENDA, AFTER THE REST OF THE AGENDA.

VOTE: YES: NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

Mayor Cushing stated that there would be further audience comments allowed after the Executive Session if anyone so desires.

COMMENTS OF THE AUDIENCE

Audience comments upon any matter.

Jeanne Parker thanked the Council for kind of taking a step back, for slowing down and moving forward in a timely manner. She voiced her thought that the Council has an interesting dilemma coming, clarifying a question if they can and, if not, to just keep working on it the way Council has been, considering, reconsidering and making sure to not move too fast. She commended the Council for creating the Town Center Development Committee, adding that this needs to happen. She stated that the comment she really wants to make is about the skateboard park, that this has been worked on a long time to get this in and implemented. She informed the Council that she too was upset about the lack of helmets and that if this does not get turned around quickly, the few kids that are wearing helmets are going to become uncool. She emphasized that wearing helmets is not un cool and there are plenty of skateboard parks in the rest of the United States where kids are wearing helmets and gear. She stated that it is just sad to see all the kids out there without helmets and gear and that it is such an exciting skateboard park. She concluded by saying she did not know what the Council can do about it, but she would really like to see, at least, the kids brains protected. She thanked the Council.

Donna Rae Faulkner thanked the Council for all their dedication to all of this work, adding that it's a late night for everybody. She thanked, publicly, the neighbors on Ocean Drive Loop for signing the petition for sewer improvements. She thanked the Council for the seawall discussion they are having, and encouraged the neighborhood meeting to happen in a timely fashion so that everyone feels informed and has had a good discussion and questions answered prior to the public hearing, which makes just good common sense. She stated that it was great to meet with the City Manager, Finance Director and Public Works Director. She thanked the Council for the amendments to Ordinance 03-25(S)(A). She voiced appreciation for the Council slowing down and just for the thoughtfulness that the Council is taking with this issue and not feeling like this is just getting pushed forward and that it feels much more like a bit of restoration of public confidence. She thanked the Council for listening. She commented that she considers herself a good educated, caring, hard working citizen here in Homer, and that she has expressed her opinion regarding the size cap, adding that she clearly is for zoning, for planning and enforcement, which also helps restore public confidence. She stated that it is honestly impossible for her to separate size cap and design and impact standards, that this is one issue, together. She emphasized that there are so many intricacies to the advisory vote questions and that she cannot answer a question just on size cap. She encouraged everyone to listen very carefully to the Palmer experience about what happens when those kinds of things are not in place. Ms. Faulkner shared with the Council that she has lot of concerns, feelings, wisdom, enthusiasm and that she has learned a lot and become educated about this through a lot of different things. She expressed her feeling that she can articulate those things to the Council when she speaks to them or writes to them and that it has been really important to have all of this public process. She affirmed that she does vote, does believe in democracy, very much in community engagement, but that she is not confident that a ballot that has yes or noes to specific questions will get to the systemic situation and the complexity of the issue being discussed. She agreed with Councilmember Kranich when he was saying that he lacked the reason and logic on why that is not quite in GC1 and so forth. She emphasized that if as a citizen of Homer she were asked to make a big, complex decision that has all these different piece involved, she does not want to make that decision on sound bites. She noted that she has, at least, been involved in this process a lot, but there are issues that she is not in the know of, therefore, she told the Council, to not ask her to vote on the intricacies of all sorts of very complicated things. She commented that if its about how to design the animal shelter, she can tell the Council that she wants to leave this to the wisdom of those in the know and who are really thinking about this deeply. She objected to leaving this big decision to the voters, that the Council and the Planning Commission have been working on this issue and have had a lot of public testimony. Therefore, she asserted that she does not want to make big decisions based on sound bites, fears, what ifs, interpretations, and even corporate campaigns. She expressed her faith in the Council and encouragement to the Council that they can make a sound decision based on being immersed in this, well versed in the issue and with public input. She acknowledged her responsibility and her honor as a good citizen to learn, to be a good neighbor, to get involved especially in areas that she is knowledgeable or passionate about, and to listen, to communicate, and to vote. She avowed the need to be thoughtful on this big complex issue and that she wants this healthy discussion to lead to a good place. She relayed her concern about people having to make a decision in their voting on the effects such as Spenard's ability to expand for the supply of wood, interjecting that there are just too many complex issues. She thanked the Council and voiced appreciation for all of their work.

COMMENTS OF THE CITY ATTORNEY

City Attorney Tans was not present, although had been contacted, at approximately midnight, regarding an amendment to Ordinance 03-25(S)(A).

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 had no comment.

COMMENTS OF THE CITY COUNCIL

Councilmember Beck voiced appreciation for the work of the Council during the worksession and that there is a perceptible change in how the Council is relating with each other, even this quickly.

Councilmember Fenske commented that he keeps waiting for this job to get easier and it doesn't. He voiced appreciation for all the work not just Council, Mayor, Staff, Commissions, but there is a lot of work just being done by community, whether volunteering at KBBI, the Concert on the Lawn, Winter Carnival or whatever. He emphasized that Homer has a pretty dynamic community and that he really likes them.

Councilmember Kranich echoed and reinforced the push to get something on the signage down there, the requirement for protective gear and that as far as he is concerned it should be full protective gear not just helmets on those kids down there skateboarding, adding and emphasizing that they make that protective gear for a reason. He noted that the Mayor even commented that on some of the more advanced venues they are all seen wearing protective gear. He voiced his opinion that "we've" been remiss ever since that lot was paved for not having even something scrawled on a piece of plywood and nailed on the wall that protective gear is required and to have the police enforce it and to chase the kids out of there if they don't have it on. He stated that he probably feels more passionate about it than this lady here, referring to Jeanne Parker. He asked to have this requirement soon. He encouraged appointments or reappointments to the Planning Commission, with three Commissioners having expired terms and one of the three not requesting reappointment.

City Clerk Calhoun responded to Mayor Cushing's inquiry that letters had not been received requesting reappointment, nor were there any new Commissioner Data Sheets.

Mayor Cushing stated that he would wait until next meeting for the Commissioners to get letters in requesting reappointment.

Councilmember Stark inquired, of the City Manager, if work is being done to identify impact fees or charges on the new sewer out East End Road, adding that the Public Works Director advised that the State is delinquent in getting out Notices to Proceed. He also questioned the corrosion control project on the Deep Water Dock, which is critical

City Manager Wrede advised that the City has the report on the Corrosion Control and the Public Works Director is struggling with funding.

Councilmember Ladd thanked the two newspapers. Recently in the Homer News an article on parliamentary procedure and trying to educate the community as to how Council works. Homer Tribune had a wonderful article by John Crowder about the community and people having to listen to each other and work with each other, because of the diverseness of the community. Mr. Ladd noted the diversity on the Council. He encouraged educating the youth/skateboarders regarding safety equipment and helmets and TBI, traumatic brain injury. He thanked the City Manager for being on the ball in dealing with Save U More, which now has a beautiful paved roadway and parking area, sidewalk and that there has been planting of trees and landscaping. He emphasized that people need to be cognizant of what the City had done for them.

City Manager Wrede shared the frustration regarding the Save U More signage, that have been some delays and this is moving forward. He stated that it would be nice if the Skateboard Group and some other groups did an educational thing and some self enforcement. He stated that if the Council wants, the City can change the sign and make the helmets mandatory, regardless of insurance costs. He suggested and asked if the Council wants to pass an Ordinance that codifies the rules for Skateboard Parks

Mayor Cushing recognized and thanked the folks who stay during the meetings and specifically noted KBBI's Jennifer Mitchell and thanked her for doing an excellent job on the Coffee Table Show.

Mayor Cushing recessed the regular meeting to Executive Session at 1:44 a.m. and reconvened the regular meeting at 2:31.5 a.m.

Mayor ProTempore Yourkowski stated that the Mayor, Council and City Manager met in Executive Session regarding the City Manager's performance of the last six months and that the media is welcome to ask any Councilmembers their opinion.

There were no further comments.

ADJOURNMENT

There being no further business to come before the Council the meeting was adjourned at 2: 33 a.m.

p.m. The next Regular Meeting is scheduled for Monday, August 11, 2003 at 7:30 p.m. The next Committee of the Whole is scheduled for Monday. August 11, 2003 at 4 p.m. These meetings are 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: _____________________