Session 04-15, 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.

Committee of the Whole was held from 4:02 p.m. to 5:30 p.m. regarding the Regular Agenda Items.

The Council held a Special Meeting from 5:41 p.m. to 7:02 p.m. to to conduct an Executive Session, Pursuant to AS '44.62.310(C)(1), Matters, the Immediate Knowledge of which would Clearly Have an Adverse Effect upon the Finances of the Government Unit. (Hurlen Claim (Pioneer Dock) and Ocean Drive Loop Bluff Erosion Control Project. (Seawall)).

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

STAFF: CITY MANAGER WREDE

CITY CLERK CALHOUN

CITY ATTORNEY TANS

FINANCE DIRECTOR BAUGH

LIBRARY DIRECTOR HILL

PUBLIC WORKS DIRECTOR MEYER

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 changes and additions: Consent Agenda Item D. Substitute Resolution 04-59(S) Blazy Construction $904,918.00 with Memorandum 04-92; Public Testimony regarding Spruceview Avenue Road Reconstruction and Paving Improvements; Ordinance 04-30(S) submitted with two proposition scenarios; Ordinance 04-35, Summary of Changes to the Final Master Plan of the Homer Non Motorized Transportation and Trail Plan; Staff request that the Council place, as Item I under the Consent Agenda, Resolution 04-62, Accepting the 2003 Comprehensive Annual Financial Report with Audit and Financial Statements and Acknowledging the Management Letter Submitted by the City's Independent Auditor, Mikunda, Cottrell and Company.

PUBLIC COMMENTS UPON MATTERS ALREADY ON THE AGENDA

Public Comments upon any matter on the agenda except Public Hearing Items A. - D. Spruceview Avenue Road Reconstruction and Paving Local Improvement District; Ordinance 04-27, Kresge Foundation grant for the Library Project; Ordinance 04-28, National Endowment for the Humanities matching grant for the Library; Ordinance 04-29,Homeland Security Grant of $165,146.00 for the Police Department; and Ordinance 04-30 includes newly submitted Ordinance 04-30(S), ballot issue regarding Loan and Long Term Debt for the Library.

Elaine Grantier, resident since 1981, noted that during she and her husband's residency in Homer, it has seemed that each time something new or different is proposed in Homer there is a loud outcry that nothing should be permitted that would change Homer, that somehow growth and progress should be stopped, as if in itself change is a negative thing. She reported that she originally supported the initiative for the 66,000 square feet for a selfish reason, a substantial improvement in the quality of life for seniors in Homer, particular in her own home. She pointed out that as they age and become less able, it is no longer possible, especially in the winter, to hop in the car and drive up the road for those items not available in Homer. She noted that retirement incomes are fixed and the increased cost of gasoline makes traveling prohibitive, especially for low income seniors. She advised that, beyond their personal situation, it is and was her belief that Homer needs the sales tax that would be generated from another major store in the community. She commented that while these might not be the best paying jobs around part time jobs, for families who need extra income or for teenagers that are trying to enter the job market, would become available. She stated that to bring home the million or two million or more dollars that Homer people spend in the Central Peninsula is a goal that the City Council should be striving to accomplish. She emphasized that she has not changed her mind on any of this, but now can add her strong belief that the people have spoken through the election and now it is time for Council to do whatever is necessary to implement the people's choice and not spend any time or effort trying to circumvent, the people have told the Council what they want. She stated that the people do want to be able to shop and spend their money in Homer and she strongly urged the Council to support Ordinance 04-33 as proposed by Councilmembers Stark and Ladd. She thanked the Council.

Frank Griswold, resident, stated that a few years ago the City Attorney sent the Council a letter addressing issues like zoning for sales tax revenue and jobs, termed fiscal zoning. He voiced his opinion that the Attorney made it pretty clear that these are not legitimate zoning objectives and suggested that since the City Attorney is here tonight the Council could ask him to address that further. He stated that he also wanted to discuss Ordinances 04-33 and 04-34 and read a couple of paragraphs from the City Attorney's April 7th letter: According to Alaska Statute (AS) 29.40.010, a governing body must make land use decisions and it must do so in accordance with the Comprehensive Plan all of which is approved after mandatory public hearings. This land use law and procedure is designed to help guard against prejudice, arbitrary decision making and improper motive in land use regulation. When a zoning code amendment is adopted by initiative, none of those safe guards are in place. If the voters should approve a zoning Ordinance by initiative the proper place and time to raise a substantive legal challenge to the Ordinance's validity based on AS 29.40.010 would be in a court action after the election. Mr. Griswold said that now is the proper time to raise a legal challenge and advised that he has hired an attorney to do so. He continued, even though the case cited in the Attorney's opinion, Price v. Dahl, is not a controlling authority it was written by Judge Cutler, a highly respected judge and her decision will weigh heavily with the Superior Court, being in the same Judicial District. He suggested that, until this particular matter is decided by the Superior Court, the Council not waste their time or the public's time having public hearings and spending more time on this until the issue is resolved. He voiced his belief that any further amendments are also subject to being invalidated. He reported that at the recent Governor's special session in Juneau, a state law maker said that when you're digging yourself into a hole put down the shovel. Mr. Griswold suggested that this would be good advice at this time. He addressed one of Councilmember Novak's whereas clauses, (Ordinance 04-343), "Whereas, Zoning is a primary tool for planning, and promoting growth." Page 175 of the Council's packet. He continued, while planning growth maybe a legitimate zoning objective, he did not see that promoting growth is part of the Code. He emphasized that, like it or not, the Council nor the voters cannot do just any zoning they want to do, which may sound sort of anti Alaskan and anti democratic, but certain laws must be followed. The purpose of the Homer Zoning Code is spelled out in section 21.28.020 so that no one has to just guess what the objectives are. He gave the Council a copy of Homer City Code 21.28.020 and read this for the rest of the people who do not have a copy:

21.28.020 Purpose of (1)provisions. This Chapter and Chapters 21.30 through 21.70 are adopted in order to enhance the public health, safety and welfare by providing local authority to:

a. Designate, regulate and restrict the location and use of buildings, structures and land for residence, commerce, trade, industry or other purposes;

b. Regulate the height, number of stories, and size of buildings and other structures hereinafter erected or alterations to existing buildings;

c. Regulate and determine the size of yards and other open spaces;

d. Regulate and limit the density of population;

e. Conserve and stabilize the value of property;

f. Provide adequate open spaces for light and air; and to prevent and fight fires;

g. Prevent undue concentration of population;

h. Lessen congestion on streets and highways;

i. Promote health, safety and general welfare.

Mr. Griswold stated that none of these objectives are contained within either of these proposed Ordinances. This section of the Code does not support relaxing zoning laws to promote the grown of Fred Meyer or any other business. He voiced his opinion that this may be the prejudice, arbitrary decision making and improper motive that Attorney Tans may have been referring to when he sent Council the letter on April 7th.

Bruce Turkington, resident over 53 years, stated that he is glad that Frank Griswold spoke, because it reminded him of a point, talking about not making changes unless it's something that exists in the Comprehensive Plan. He suggested remembering that less than a year and a half ago there was no size limit. He stated that, as far as he knows, the Comprehensive Plan has not gone through any major amendment that would restrict the current use. Subsequently there has been a lot of zoning changes that may not be consistent with the Comprehensive Plan, interjecting his understanding that there may be some amendments in the process. Mr. Turkington noted that if the discussion is going to be about what Mr. Griswold is talking about then no size limit would be consistent and the zoning that went through the Planning Commission and adopted by the Council was even more restrictive. He stated that what they did with the initiative was to make it a little less restrictive, but still a restriction and more than what existed before, which was no size restriction. He suggested that if what Mr. Griswold says is true then maybe what was done with any size restriction might be in violation by the same criteria Mr. Griswold is using. So that might be giving thought to how far back it goes and what is wanted to accomplish that. Disregarding that, Mr. Turkington stated that in all the years of being in public office and serving on Committees and Boards he has never seen the kind of turnout that this Special Election had, almost 75% greater than the last election. There were people talking one on one on both sides. People found out about the Special Election by word of mouth, listening and reading articles in the paper and were pretty much aware of what the election was about. He noted that there were some on both sides who indicated accidentally marking the wrong spot on the ballot. He asserted that the Council ought to look at this turn out real hard and think about what the community wants, that may people voted that have not voted for a long time and made real efforts to get out and vote. He commented about being involved in talk shows and people from both sides called in. He told the Council that their options are to look at what Mr. Griswold said and throw out all the restrictions or look at the restricted cap of 66,000 square feet and go with it, which is consistent with what the voters asked the Council to do.

Beth Wythe, 31 year resident, spoke in favor of Ordinance 04-33, stating that the current City Code was voted into place by the Council at a time they were fully aware that the petition was being circulated to support a 66,000 square foot, foot print for retail and wholesale business. She told the Council that as a graduate of Homer High School, that she has raised her family here, and that her children are third generation Homer Citizens and the probability of a fourth generation raised in and living in Homer is very unlikely. She advised the Council that she and her husband have both been blessed with two of the very fine jobs that are in Homer, and there are very few. She said that she has set back for years and not voiced her opinion about the absence of growth in Homer, with the exception of to her family and personal friends. She commented that as they prepare to send their daughter to college with a true understanding that she will not likely be able to return to Homer to live. Mrs. Wythe emphasized that she can no longer stay quiet when more and more parents are voicing their concerns regarding the continuous downsizing of the public schools. She stated that, because there are limited growth opportunities in Homer, she has raised her children with a comfort zone that will allow them to live outside of Homer. She noted the following:

Mrs. Wythe stated that, fortunately, her children are nearly exiting the school system and have benefitted from many of the programs that no longer exist She pointed out the following:

Mrs. Wythe clarified that she does not know Mr. Novak, that she has never known him and that she finds it very offensive that he would presume to interpret the way that she would cast her vote. She pointed out that she has been voting in the City of Homer since she was eighteen years old and that she has never voted the voice of her husband, father or any other person and that she is very offended that, without even knowing her, the intent of her vote would be presumptuously determined. She, with emphasis, stated that she cast a vote for a 66,000 square foot, footprint for retail wholesale business as it was clearly stated on the ballot. She reported that she has voted in City elections for many years, that candidates of her choice have not always been seated, none have ever presumed that they had the right to interpret her vote. The fact that the Council presumes that right, when Council has a 63% mandate, flies in the face of the constitutional right of the voters to voice their opinion and direct the government of whom they have been elected. The voters have spoken and for the Council to take any action other than approval of Ordinance 04-33, which amends the current Code to comply with the mandate of the votes, would be a gross violation of the Council's authority. She thanked the Council for their time and the community members for their patience.

Sherry Bess, with a pink poodle toy under her arm, greeted the Mayor, Council and City Manager with a "Good evening" and announced that she is the Director of the Animal Shelter. She noted that she is accompanied by and surrounded with people wearing pink poodle pins who are supporters waiting to hear the fate of their long overdue Animal Shelter. She asked for everyone in the audience to raise their hand who are wearing the pink poodle button and who are in support of the Animal Shelter. She voiced their hope that tonight the Council will be awarding the contract to a contractor that would be well within the City's current allocated funds. She commented that with only two bids received, both significantly over the expected cost, they can only imagine the Council's frustration. She asked that the Council not allow this development to jeopardize the shelter by adding the state appropriated monies to the $450,000.00 borrowed from the City's special project fund, instead of incorporating it into the $450,000.00, which would significantly close the gap. She advised that they were hoping that Representative Seaton would be here tonight, but he is working on boat refrigeration and has a deadline, that his office has been in contact today with the City and with the Governor's Office and that it is looking like the Governor won't veto the $130,000.00. She voiced great appreciation for all of the Council's efforts dedicated to making the new Animal Shelter a reality and urged the Council to please keep the project moving forward. She reported that they have boxed up and moved two great big pickup loads of shelter stuff into storage and that she has been told that no one is going to help her move it back. She thanked the Council again for their time, energy, creativity and devotion to the Animal Shelter project.

Leonard Wells, City resident, commented on the vote on the 66,000 square feet and that he does not think that some of the people, at least one for sure, thinks that the Council has to limit themselves to that small of a number as footprint for bringing stores, bringing business to the community. He stated that the City Council could amend it much higher or even drop back to where it was a year and a half ago, which was no limitation and allow businesses, enterprise, which is what built America come in and build, and either succeed or not succeed. He encouraged the Council to keep in mind that the voters did not like what the City Council voted on limiting business opportunity in this City and that 66,000 could be raised above that. He thanked the Council.

Ray Kranich thanked the Council and greeting them with, "Good evening." He stated that he just passed out to the Council, Mayor and Manager a copy of the portion of the Homer City Code, 21.48.040, which was in effect at the time the initiative, for the recent Special Election, was drawn up. He stated that there has been considerable rhetoric regarding the manner in which the recent initiative was worded. He stated that when looking at this sheet, that he just gave the Council, one can see that the initiative language fits, the code that was in effect when the initiative was drafted and there was no section d or e, which were adopted after the initiative was accepted. He voiced strong support for the acceptance of Ordinance 04-33 for first reading and that it will go a long way to straighten out the conflict that exists in the Code today after the election of June 15 and acknowledges that the Council has received input from the Planning and Zoning Commission on this matter. He suggested that if the Council was unable to amend zoning code without input or approval by the Planning Commission then most of the existing zoning code, on the books, won't be valid, because the Council invariable makes some amendment at second reading. He stated that he just as strongly objects to Ordinance 04-34, that the square footage in that Ordinance completely ignores the wishes of the voters as expressed in the recent election. He asked the Council to please not accept this Ordinance for first reading. The voters were clear on this issue. He echoed Mr. Wells comments about going back to no cap. He reported that there were many, many people that when he was circulating the petition asked where to sign and which petition to sign to have no limit and that people went along with increasing the limit to 66,000, but would rather have seen no limit and to go back to free enterprise rules. He encouraged the Council to adopt Ordinance 04-33 in the interim, that the voters have spoken, and its 66,000. He thanked the Council.

Al Waddell read the editorial intent from the Homer News.

For his part, Novak said the vote was a concept. Whether or not voters supported larger retail development in Homer. Mr. Waddell stated that in truth it was more simple than that, that the voters were making a symbolic decision whether to allow Fred Meyer into Homer and that for better or for worse, the voters want Fred Meyer and they want 66,000 square feet. He announced that lawyers know not to ask questions to which they do not already know the answers, noting that the Council now knows what the people want and hiding behind semantics, at this point, seems weak. Second guessing voter intent seem unethical It's too late for that, the people asked for it so let them have it. Chris Bernard, Managing Editor.

Mr. Waddell read the following to the Mayor and the Councilmembers: Sunday is the fourth of July, Independence Day. It was a day in 1776 where we, the people, declared our independence and fought for and won our freedom. No more dictatorships. No more tyranny. A Bill of Rights for the People, we the people. Please understand that tonight I pray that as all of us people and the Mayor and four specific Councilmembers remember the end to all of our pledge of allegiance tonight, justice for all. Tonight is a night that the electorate of the City of Homer will always remember, the will of the people. Tonight let's put an end to your lingering refusal of defeat. You lost. Get over it. There is no reason to send this back to Planning and Zoning. You people have the power to make the Ordinance into law. The people have voiced themselves, loud and clear. You are all elected by the people and are bound to follow through with the people's demands. They have spoken and not it is your duty to act on their behalf. I got a couple of names here and it is not to any of you people. We've all heard of former Governor Davis of California and the new governor Mr. Schwartznegger, it's called recall. I believe we can have five more, costly, time consuming elections. That's one for each of you. That we, the people of Homer, can attempt to start out with a clean slate and new people. A brand new set of rules to bring the real citizens the power of Homer. The electorate people of Homer have spoken and have the power and the freedom to choose. It is not just a select few to decide for the entire voter population the way we wish each and every decision to go, especially after the population has spoken loud and clear. On this last election held on June 15, 04, wherein the people voted in the 66,000 square foot retail wholesale building. If this is not adopted tonight there will be made available recall petitions and hopefully the 62.86 voters to sign starting Wednesday, June 30, 2004. We the people understand, yes or no; white or black. It's time to act. He thanked the Council.

RECONSIDERATION

None scheduled.

CONSENT AGENDA

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

Councilmember Ladd asked for Item H. to be placed under New Business.

A. Homer City Council unapproved meeting minutes of June 14, 2004 Regular Meeting. and June 21, 2004 Special Meeting. City Clerk. Recommend approval.

B. 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. Recommend First Reading June 28, 2004, Public Hearing and Second Reading for July 26, 2004.

Memorandum 04-91, from Public Works as backup.

C. 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. Fiscal Note: Revenue Acct. 151-731.4512, Expenditure Acct. 151-731. Recommend First Reading June 28, 2004, Public Hearing and Second Reading for July 26, 2004.

Memorandum 04-98, from HPD as backup.

D. Resolution 04-59(S), Of the City Council of Homer, Alaska Awarding the Contract for the Homer Animal Shelter Project to the Firm of Blazy Construction of Soldotna, Alaska in the Amount of $904,918.00 and Authorizing the City Manager to Execute the Appropriate Documents. Public Works. City Clerk. Fiscal Note: Project Acct. 151.275, $900,000.00 allocated and $130,000.00 state grant/appropriation pending. Recommend adoption.

Memorandum 04-92, from Public Works as backup.





E. Resolution 04-60, Of the City Council of Homer, Alaska Recognizing the need for a Convention Center Feasibility Study and Authorizing Application to the Alaska Department of Community and Economic Development for Funds to Conduct Such a Study and Authorizing the City Manager to Execute and Submit the Appropriate Documents. City Manager. Recommend adoption.

F. Resolution 04-61, Of the City Council of Homer, Alaska, Amending the Personnel Section of the Records Retention Schedule to include new Federal Regulations Governing Privacy of Medical Records (HIPAA Privacy Regulations). City Clerk. Recommend adoption

Memorandum 04-96, from Personnel Officer, as backup.

G. Memorandum 04-94, from City Clerk, Re: Vacation of a Portion of Starr Road, Palmer Street and Associated Utility Easements as Dedicated by Palmer Pines Subdivision Addition No. 03 (Plat HM 2002-21); within Section 3, Township 6 South, Range 13 West, Seward Meridian, Alaska; and within City of Homer and Kenai Peninsula Borough; KPB FILE 2004-006. Vacation. Recommend non veto and voice consensus.

H. Memorandum 04-95, from City Manager and Mayor Cushing, Re: Reaffirming the Location of the Homer Ice Rink/Multi-Purpose Facility on the HEA Waddell Way property. Recommend affirmation.

Placed under New Business as Item A.

I. (If Council approves moving this forward from Resolutions.) Resolution 04-62, Of the City Council of the City of Homer, Alaska Accepting the 2003 Comprehensive Annual Financial Report with Audit and Financial Statements and Acknowledging the Management Letter Submitted by the City's Independent Auditor, Mikunda, Cottrell and Company. Finance. Recommend adoption.

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

VOTE: YES: NON OBJECTION . UNANIMOUS CONSENT.

Motion carried.

VISITORS

None scheduled.

ANNOUNCEMENTS/PRESENTATIONS/BOROUGH REPORT/COMMISSION REPORTS

Mayor Cushing announced that the dedication ceremony for the Oceans and Islands Visitor Center will be Saturday, July 3rd and invited everyone.

Councilmember Stark, Fire Department Strategic Planning Committee (FDSPC) member, reported on the activities of the FDSPC of the last four months, that they met regularly and went through the matters which needed to be considered as far as strategic planning for fire service in the Homer Area. He stated that he was impressed with the cooperation between the three main players in the fire service for this area the City of Homer, KESA (Kachemak Emergency Services Area), and Kachemak City, all of whom had representatives on this Committee. Items considered were locations for future fire stations particularly on the bluff, the west part of Diamond Ridge and the east part of Skyline Drive. The Committee is recommending that a sprinkler system Ordinance be adopted by the Council. This Ordinance and the Strategic Plan, for the next five years, will be to the Council in due course.

PUBLIC HEARING(S)

A. Spruceview Avenue Road Reconstruction and Paving Local Improvement District.

Roger Davis, owner of Lot 13 B on Bartlett Street, inquired if he was, for sure, eligible for the Senior and/or the Double Access deferred assessments (2). He pointed out that he is one of the major contributors to the district and voted in favor of he district since he could have made it fail with a negative vote. (3) He noted that it says in the thing that he may have potential deferment and that he may not have to pay. He asked for assurance that he won't have to pay and wanted to know what age the Senior discount is???

City Manager and City Clerk advised that the age for senior deferment is 62. Clerk briefly commented regarding the access deferment.

Mr. Davis commented on the Borough's Senior exemption. He stated that he finds it amazing that the generation of the Baby Boomers and pre Baby Boomers, like himself, move to the Kenai Peninsula and don't pay taxes, but the kid that might go to work at the Fred Meyer Store for $9 per hour that has two or three kids and a shack out East End, will have to pay property tax. He commented about the new houses going up on the steep slope of 10,000 square foot, 5, 000 square foot and so forth, who have retired from Anchorage, are paying no tax. He emphasized that this is an amazing thing. Let's put the burden on the next generation, let's skip the guys that are the fat cats and go right to the next ones - my child, your child or whatever. What a system. Mr. Davis advised the Council that he is not here to tell them that he does not way to pay, that he is willing to pay and lives on an income that is under $40,000.00 a year and has lived all of his life in Alaska. He suggested that this is bamboozling somebody here, that it is a shame and that it is being done to the next generation. Struggling for how to say it, he stated that we are doing it to them to save ourselves a buck. He queried if this is really Alaska, is this what we've come to, because it certainly is not the Alaska he remembers as a child and called this a shame. He said that he does not really want to pay if he does not have to, adding what he is really here for is Woodard Creek. He noted that to do this project Woodard Creek will be crossed. He told the Council that if they do a culvert there he is going to be as mad as he can be about anything. He said that it is a shame that this little creek that runs through this community, has been thrashed from the start to the finish and that what is really needed there, according to Public Works, is a nice arch across the creek to make it attractive to people who want to have interaction between nature and whatever. He stated that he would not come back unless they recall half of the Council and then maybe he'll run for one of the seats.

Heather Beggs, City resident and Director of the Pratt Museum, testified that the Pratt Museum is a signatory to the Spruceview LID and regarding the crossing of Woodard Creek. She, on behalf of the Museum, urged the Council to complete this with the least amount of environmental impact to Woodard Creek, preferably, a bridge crossing as was just suggested. She noted that the Council certainly knows by now that Woodard Creek does not need another culvert. She urged the Council to consider the very delicate state of the urban water shed in their considerations for Spruceview reconstruction and paving. She thanked the Council.

B. Ordinance 04-27, Of the City Council of Homer, Alaska, Accepting and Appropriating a Grant of $75,000.00 from the Kresge Foundation for Planning Purposes for the Homer New Public Library Project and Authorizing the City Manager to Execute the Appropriate Documents. City Manager. Fiscal Note: Revenue and Expenditure Acct. 151-722, $75,000.00 to the Homer New Public Library Project. (First Reading June 14, 2004, Public Hearing and Second Reading for June 28, 2004. )

There was no Public Testimony.

FENSKE/BECK - MOVED FOR THE ADOPTION OF ORDINANCE 04-27 BY READING OF TITLE FOR SECOND AND FINAL READING.

There was no discussion.

VOTE: YES: NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

C. Ordinance 04-28, Of the City Council of Homer, Alaska, Accepting and Appropriating a Matching Grant of, up to, $400,000.00 from the National Endowment for the Humanities (NEH) for the Homer New Public Library Project and Authorizing the City Manager to Execute the Appropriate Documents. City Manager. Fiscal Note: Revenue and Expenditure Acct. 151-722, $400,000.00 to the Homer New Public Library Project. (First Reading June 14, 2004, Public Hearing and Second Reading for June 28, 2004. )

There was no Public Testimony.

BECK/FENSKE - MOVED FOR THE ADOPTION OF ORDINANCE 04-28 BY READING OF TITLE FOR SECOND AND FINAL READING.

There was a brief statement of congratulations to all those involved with the Library Project.

VOTE: YES: NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

D. Ordinance 04-29, Of the City Council of Homer, Alaska Accepting and Appropriating a State 2004 Homeland Security Grant of $165,146.00 for the Purchase of Equipment and Authorizing the Chief of Police and Mayor to Execute the Appropriate Documents. City Manager. HPD. Fiscal Note: Revenue and Expenditure Acct. 151-784 State Homeland Security Grant Program (SHSGP)$165,146.00. (First Reading June 14, 2004, Public Hearing and Second Reading for June 28, 2004. )

There was no Public Testimony.

FENSKE/YOURKOWSKI - MOVED FOR THE ADOPTION OF ORDINANCE 04-29 BY READING OF TITLE.

There was no discussion.

VOTE: YES: NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

E. 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. )

E.1. Ordinance 04-30(S), Of the City Council of Homer, Alaska, Approving and Submitting a Loan and Long Term Debt Authorization and the Use of not More than $_________________ 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.

This was added under agenda approval. Copies were made available for the Public as well as some possible verbiage change on the substitute proposition one. There was also proposed verbiage change on the two proposition scenario, however, inadvertently, was not copied for the public or the Council.

Mayor Cushing stated that the amount in the blank should be $143,113.16.

Alan Parks, Co Chair of the Friends of the Library Vote Committee, greeted the Mayor, Councilmembers and the City Manager, and that, on behalf of the Committee, spoke in favor of the substitute Ordinance. He noted that there are some folks in the audience supporting his testimony. He spoke in favor of the rededication of some of the funds from the Homer Accelerated Roads Program (HARP) to be dedicated to the Library. He noted that it is not that much money that they are asking to be redirected, a very small portion of the over all funds that are collected by the 3/4 of 1% sales tax that is now in place specifically for roads. He advised that the Committee is going to be working assertively and positively throughout the community to inform people on what this vote is going to mean and what it is going to bring for the citizens of Homer, which is a new Library. He commented that there has been a lot of talk about the HARP, but it is really important for the success of the Library that this go forward and that there be a positive out come of it, because the Rasmuson Foundation and the NEH grant money are all pending on public participation. He emphasized the importance that the community be informed on what is being voted on and that it is only for the life of the loan. He added that this does not mean the loan cannot be paid off sooner, and, as the Mayor said, its only and really $143,000.00 a year. He voiced the Committee's hope that the Council would adopt this Ordinance and thanked the Council for their support, effort and work on bringing the Ordinance forward.

Mayor Cushing relayed comments from the Committee of the Whole that this amount may even be as high as $160,000.00 to pay it off a little earlier, or be .125% of the sales tax.

Mr. Parks advised that the Committee discussed at length on how to present this question to the public and that they felt that one question was more beneficial for their efforts. He stated that however it turns out they will try to inform people in a positive way. He thanked the Council for their time.

Leonard Wells stated that while he is not particularly opposed to the Library he would voice an opposition to the Council using a bait and switch or tax and switch usage of funds that are supposedly being collected for one purpose, road improvements, which Homer needs very badly and does not seem to do anything at all with. He said that he sees the proposition going to the citizens putting a new tax on, specifying, that the whole thing is for use of the Library. He suggested that if the City is not, obviously, using the road tax money then cut that tax back and eliminate it.

Mayor Cushing advised the public that there will be another public hearing on July 26, 2004. He asked that Councilmember Beck put together a substitute version A. for the July 26th meeting.

Councilmember Stark clarified, adding that he concurs with Mr. Wells, that this is not taking road funds to do this, that it was found, through careful analysis, that the money collected for the 3/4 of 1% sales tax for the road fund is in excess of what seems to be needed. He emphasized that the existing funds will not be tapped and that the voters will be asked to reallocate 1/8th of 1% of sales tax income to the library project for construction and equipping.

Councilmember Ladd asked that both scenarios, one proposition and two propositions, be included for the July 26th meeting.

ORDINANCE(S)

A. Ordinance 04-32, Of the City Council of Homer, Alaska Approving and Submitting a One Percent (1%) 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 4.25 Mills if the Sales Tax Increase is Approved by the Voters. City Manager. Mayor and Council. (Fiscal Note: Projected net revenue - $1,033.931.00.) (First Reading June 28, 2004, Public Hearing July 26 and August 9, 2004 and Second Reading for August 9, 2004. )

STARK/LADD - MOVED FOR THE ADOPTION OF ORDINANCE 04-32 BY READING OF TITLE FOR INTRODUCTION AND FIRST READING.

Councilmember Stark voiced his opinion that this is more money then is needed by the City. He stated that there are some good things going in the City and that he thinks there will be some additional money coming because of the Kenai Peninsula Borough action. He shared his thought that the general economic trend of the City is moving forward particularly with the approval of the initiative last week. He commented that 6% is a nice maximum and maybe 5% is a nice maximum too, but beyond 6% is unreasonable and unfair.

STARK/LADD - MOVE TO AMEND TO REDUCE THE INCREASE TO ONE HALF OF ONE PERCENT INCREASE IN THE SALES TAX.

Pros and cons to the amendment were discussed. Other options were discussed such as seasonal sales tax and bed tax. Concern was expressed regarding the verbiage of Section 5. of the Ordinance, the last three lines, specifically the last section beginning with "other priorities".

Section 5. The City Manager and City Clerk are authorized to provide an explanation to the voters regarding the Council's finding that the new revenues generated if this proposition is approved by the voters are needed to provide for construction and operations costs associated with the new Homer Public Library, maintenance and operations costs associated with the new animal shelter and new ice rink, and other priorities identified by the recently adopted Long Range Fiscal Plan.

Discussion continued including the following: It was noted that workmen's comp is going up, insurance is going up, a $900,000.00 short fall is known at this time for next fiscal year, which has to be met. There was concern that this could affect the Library Project. It was stated that one half of one percent seasonal sales tax would net around $306,000.00. The Operations and Maintenance (O & M) costs of the Library are estimated at $200,000.00 per year and the O & M for the Animal Shelter are estimated at $110,000.00 very close to the $306,000.00 seasonal one half of one percent sales tax. The Citizen Survey was very supportive of a seasonal sales tax for capital projects such as this. Other forms of generating revenue do need to be reviewed. If the sales tax cap is raised that will generate around $400,000.00. Seasonal sales tax does have the quality of spreading the tax burden to visitors, however, the seasonal sales tax will increase the cost of living of the residents. This is sort of a substitute for having a special district since it gets money from everybody in the area in somewhat the same way.

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

NO: LADD.

Motion carried.

Discussion ensued regarding possible amendment to the mill rate section to coincide with the reduced sales tax.

Finance Director Baugh advised that the 1% sales tax is $1,288,000.00 and the now .5% sales tax is $645,000.00. .75 mill decrease in property tax is $255,000.00 about one third of the increase equating to a net of about $400.000.00 and a .5 (half mill) decrease in property tax is about $170,00.00. He pointed out that $645,000.00 minus the $170,000.00 is a net revenue of about $470,000.00.

Mayor Cushing noted that if the Borough does raise the sales tax cap that will be an additional revenue of about $400,000.00. (4)

FENSKE/STARK - MOVED TO AMEND TO CHANGE THE .75 MILS TO .5 MILS OR 4.25 MILS TO 4.5 MILS, IN THE TITLE AND

There was some concern expressed that this ties the City Manager's hands and suggestion was that the City Manager be tasked with coming up with a reduction that suits the budget. Points were: That there is too much speculation on the sales tax and with the Borough possibly increasing a sales tax cap. The voters need two or three carrots with a sales tax increase and this can be done through a property tax decrease. It is obvious that more discussion is needed on this issue. There was a suggestion to delay action on this issue. More comment about making this a seasonal sales tax. A 1% seasonal sales tax generates around $612,000.00 and $306,000.00 for the 1/2%. There was mention of submission of a substitute Ordinance.

Mayor Cushing pointed out that there are two public hearings prior to action. He also noted that this amendment would also show in the proposition.

City Attorney noted that it should be reflected in lines 62 and 67.

Mayor Cushing asked if the Council understood that this motion would amend those areas throughout the Ordinance and if not happy with that to so state. He further pointed out that the first amendment also amended the title, question etcetera.

There were no objections voiced by the Council and it appeared that the Council understood that the two amendments would be reflected throughout the document.

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

Motion carried.

STARK/ - CALLED FOR THE QUESTION.

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

Motion carried.

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

Motion carried.

Mayor Cushing called for a recess, at the request of a Councilmember, at 8:38, reconvening the meeting at 8:55 p.m.

B.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. )

City Attorney Review.

B.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. )

The City Council refers Ordinance 04-34 to the City Manager, City Planner, and Planning Commission for action, including a public hearing and written recommendations of the Planning Commission pursuant to Homer City Code.

Requested by Councilmember Novak that the City Council refer Ordinance 04-34 to the City Manager, City Planner, and Planning Commission for action, including a public hearing and written recommendations of the Planning Commission pursuant to Homer City Code.

STARK/LADD - MOVED FOR THE ADOPTION OF ORDINANCE 04-33 BY READING OF TITLE FOR INTRODUCTION AND FIRST READING.

Discussion: The people have spoken during the special election by a 63% vote to carry out the will of this Ordinance. All this Ordinance does is to codify that decision in the code, no more or no less and that decision, according to state law, cannot be changed/amended for the next two years. The population expects the Council to follow the will of the people, Council represents the population, their boss. In most cases Council are representatives and use their best judgement, in this case Council has been given direct orders. The Planning Commission set caps, held several public hearings, Council held public hearings and the people have spoke through the ballot. The consumer has spoken. There were differing views on whether or not these Ordinances need to go to the Planning Commission. There were comments about the specifications in Alaska Statute regarding the initiative and referendum process and effective dates thereof. The overwhelming yes vote by the Homer voters was duly noticed. It appears obvious that the voters wish to have larger retail space. The initiative addressed building size and the current Code addresses business size. Some people may have voted on this issue as to whether or not Fred Meyer was going to be able to build in the City. City process for zoning code amendments is that these go through the Planning Commission.

Mayor Cushing emphasized that regardless of what the Council does with Ordinance 04-33 or 04-34, the initiative is effective, that the will of the people is still in City law.

City Attorney Tans affirmed that what the voters have voted on has become effective as an Ordinance of the City. He responded to Council inquiry that there is an issue of whether or not there is a conflict in City Code:

City Attorney Tans responded to the following Council question: If a larger retailer put a plan forward to Planning for the development (in the CBD)and was compliant with all aspects of the standards, but there is a conflict with the size? What would be the appropriate action of the Planning Commission? To approve the permit and go forward ? Or to deny?:

Response: That the Planning Commission has to apply the law on the books for them to use. There is currently on the books a limitation of 35,000 square feet on maximum size of retail or wholesale. The foot print can be no more than 66,000 square feet. They will struggle with that and will make a decision. It will probably be appealed to the Council and the Council will get to decide on appeal as to what that means, if the Council leaves the Code the way that it is today. And then the Council's decision can be appealed to the Court if someone is unsatisfied with that decision.

Councilmember Ladd inquired if Ordinance 04-33 were enacted would the conflict be eliminated?

City Attorney Tans affirmed that this problem would be eliminated

FENSKE/YOURKOWSKI - MOVED TO FORWARD BOTH OF THESE AMENDING ORDINANCES TO THE PLANNING COMMISSION FOR REVIEW, PUBLIC COMMENT AND THEIR RECOMMENDATION TO BE BROUGHT BACK TO US AS SOON AS PRACTICAL AND THAT WOULD BE JULY 26TH.

Mayor Cushing inquired if this is intended to negate the first reading on the first Ordinance if it is intended to introduce both Ordinances.

Councilmember Fenske affirmed that it is intended to introduce both Ordinances and to introduce also 04-34 and sending them both to the Planning Commission.

Councilmember Yourkowski affirmed his second to that change.

Mayor Cushing inquired if the Council is clear on this motion that both are being introduced.

MOTION NOW READS: FENSKE/YOURKOWSKI - MOVED TO INTRODUCE BOTH ORDINANCES AND FORWARD BOTH OF THESE AMENDING ORDINANCES TO THE PLANNING COMMISSION FOR REVIEW, PUBLIC COMMENT AND THEIR RECOMMENDATION TO BE BROUGHT BACK TO US AS SOON AS PRACTICAL AND THAT WOULD BE JULY 26TH.

There was concern expressed regarding the Planning Commission having a meeting prior to the Council's meeting on July 26th.

It was confirmed by the City Manager and City Clerk that the Planning Commission did cancel their July 7th regular meeting, that they are conducting a special meeting on July 8th for the purpose of dealing with one matter and will have a regular meeting on July 21st. The staff will set the public hearing for the Planning Commission. It was noted that they, Planning, are expecting this.

Councilmember Novak wanted clarification that these two Ordinances are being introduced in tandem. He also voiced concern that his Ordinance 04-34 had not been properly introduced.

Mayor Cushing affirmed that the Ordinances are being introduced in tandem and that Ordinance 04-34 has been introduced, if this motion passes, through Councilmember Fenske's motion.

Council noted that, by schedule, these Ordinances will be back to the Council for public hearing on July 26th and Second Reading on August 9th.

VOTE:(Fenske motion to send to planning commission) YES: NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

Mayor Cushing allowed some further discussion: There are a variety of views and as to how interpretation should be made. Litigation may be unavoidable. By sending these to the Planning Commission there won't be litigation on the process. One of the reasons for Ordinance 04-33 is to avoid litigation and address the initiative.

Mayor Cushing, with consensus of the Council, stated that their understanding is that they voted on an amendment and now have the main amended motion on the floor.

Councilmember Novak stated that Ordinance 04-33 does not recognize that the 66,000 square foot, foot print has already be placed in the Code. He noted that some public have commented that they want to see a change to the existing Code. He voiced his opinion that the direction by the voters was to increase the size, which is what Ordinance 04-34 does. He emphasized that no one is against growth and that it is important to make responsible decisions, asserting that he understands the will of the people, but also understands that he has to make a decision that he is feeling comfortable with, that he feels is responsible, and that he feels is best for Homer. He stated that he feels this is the best thing for Homer, irrespective if one voted yes or no and that there are a lot of things to look at. He shared his thinking that making a responsible decision by this body is the most important priority. He stated that Council needs to give this some thought, address the issues and come up with the best answer. He relayed comments from other states who were inquiring about what is going on in Homer regarding this issue, that Homer is being watched, because "we" are taking on positions that are not always popular, looking at what is best for the town, how to deal with growth and corporate America's desire to be here. He emphasized that the Council needs to consider the people's needs and the community. He encouraged competition and a competitive economy and atmosphere, to grow healthily. Mr. Novak stated that then, maybe, Homer kids can find jobs here, but it will be a while before the kids can find jobs here, because it's a little town and everyone would love to be here. He also stated that most of the people in Homer are doing something else other than what they could be doing in another community, because these people want to live in Homer. That is just how it is. Council will do their best to do what is best. He asked people to bear with the Council on this and understand that this is Council's objective.

Councilmember Stark voiced concurrence with most of what Councilmember Novak stated, adding 'as usual'. He stated that he did want to point out that there is not a finite amount of money in Homer, that there is a large amount of money in the South Peninsula within a radius of 30 miles of Homer and people driving through Homer, leaving Homer to shop other places that with a larger store people will shop in Homer. He emphasized that money will be left in Homer, a lot of sales tax will be generated for the City government, while buying at the larger store people will also be going around and looking at the wonderful smaller stores in the Homer area. He noted that with a larger store the whole area is going to benefit and the merchants are going to adapt. He elucidated how Homer merchants will and have adapted. Homer merchants will carry things that are not at the larger store, will have better service than the larger store, perhaps, and with the large increase in the number of customers coming into Homer, everybody is going to benefit.

YOURKOWSKI/FENSKE - CALLED FOR THE QUESTION.

VOTE:(call for the question) YES: NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

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

Motion carried.





C. 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.)

Summary of changes to NMTTP.

BECK/YOURKOWSKI - MOVED FOR THE ADOPTION OF ORDINANCE 04-35 BY READING OF TITLE FOR INTRODUCTION AND FIRST READING.

Councilmember Beck encouraged people to stop in at City Hall and check out this NMTTP, that it is an impressive final document and it is time to approve it and move forward.

Councilmember Yourkowski stated, now let's go out there and figure out how to build them.

VOTE: YES: NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

CITY MANAGER'S REPORT

A. City Manager's Report (Updates/Follow up - Ice Rink, Spit Crosswalks, Karen Hornaday Hillside Park Drainage Ditch, Animal Shelter, Spit leases, Non Motorized Trail Plan, Short Term Lease./Ocean Beauty, Bartlett/Hohe, Sterling Highway Repaving, Civic Center.)

1. Memorandum 04-93, from City Manager, Re: Port/Harbor Director Position.

Bill Abbott retiring September 10, 2004 and promotion of Steve Dean.

Council commented on the need for crosswalks on the Spit, particular at the Sterling Highway and Kachemak Drive Intersection area across Spit Road and across Kachemak Drive to the Spit Pedestrian/Bicycle Pathway; the Sterling Highway Project area from Pioneer Avenue to Kachemak Drive and the pedestrian enhancements and safety features that are to be included. Council voiced full support of the promotion of Steve Dean.

City Manager Wrede emphasized the cooperation and responsiveness of DOT with regard to the Council/City requests and suggestions. He commended the Planning Commission for all of their hard work, that they deserve a break and is appreciative that they canceled their first regular meeting of July, the 7th. He commended the Planning Commission for conducting a special meeting, July 8th, for the sole purpose of addressing the urgency of the Homer Hockey Association's amended Conditional Use Permit with regard to the Multi Purpose Ice Arena Facility

COMMITTEE REPORT

A. Road Standards Committee. June 22 Meeting canceled, next meeting Tuesday, June 29th at 6:30 p.m.

B. Town Center Development Committee. June 24, Meeting.

C. Beach Policy Committee.

There were no comments.

PENDING BUSINESS

NEW BUSINESS

A. Consent Agenda Item H. Memorandum 04-95, from City Manager and Mayor Cushing, Re: Reaffirming the Location of the Homer Ice Rink/Multi-Purpose Facility on the HEA Waddell Way property. Recommend affirmation.

Recommendation: That the Council support the position the Homer Hockey Association (HHA) has taken reaffirming the desire to build the ice rink/multiple purpose facility on the Homer Electric Association site.

LADD/STARK - MOVED FOR THE APPROVAL OF MEMORANDUM 04-95 BY READING OF TITLE.

LADD/STARK- MOVED TO AMEND ON PAGE 104, IT READS PRESENTLY THAT THE COUNCIL SUPPORT THE POSITION THE HHA BOARD HAS TAKEN REAFFIRMING ITS DESIRE TO BUILD THE ICE RINK/MULTIPLE PURPOSE FACILITY ON THE HOMER ELECTRIC ASSOCIATION SIT, ADD, "AND THAT THE INTERIM TEMPORARY PLAN SUBMITTED IN THE HHA CONDITIONAL USE PERMIT REQUEST BE ACTED UPON BY THE HOMER ADVISORY PLANNING COMMISSION EXPEDITIOUSLY IN ORDER NOT TO JEOPARDIZE THE VERY TIGHT CONSTRUCTION AND ARCTIC WINTER GAMES SCHEDULE.

Councilmember Ladd emphasized that this is a facility that this community really does need and there is so much to gain by all ages by a facility that allows for recreational type activity. This type facility has been needed in Homer for years especially for the school students. This facility is done in cooperation with the City and with the HHA, which has quite a substantial following and have done much, working diligently to acquire dollars, working with architects and engineers. They have come up with some temporary solutions in dealing with soils issues. Supporting the HHA activities, which are supporting the community and the need to get the Arctic Winger Games, which is a tremendous boon for Homer. He voiced his hope that the Planning Commission will work with the HHA has they have been doing, to resolve any issues that may have surfaced.

Councilmember Stark seconded the remarks of Councilmember Ladd. He stated that this facility will allow people that like to ice skate and people that want to do figure skating, speed skating and enjoyable skating to do that activity. He stated that he wanted to, particularly, thank the Mayor and voice appreciation for his efforts on this from the beginning and that it has been sort of a labor of love for the Mayor and for the City of Homer as well.

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

Motion carried.

Mayor Cushing noted that the Planning Commission is a step ahead of the Council in scheduling a special meeting to deal with this single item and thanked them for doing so.

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

Motion carried.

RESOLUTIONS

A. Resolution 04-62, Of the City Council of the City of Homer, Alaska Accepting the 2003 Comprehensive Annual Financial Report with Audit and Financial Statements and Acknowledging the Management Letter Submitted by the City's Independent Auditor, Mikunda, Cottrell and Company. Finance.

Placed under Consent Agenda during Agenda Approval.

COMMENTS OF THE AUDIENCE

Audience comments upon any matter.

Leonard Wells inquired, regarding the trails one, what the speed limit on the Bypass is?

He was advised that it is 30 mph.

Mr. Wells stated that his comment is that it seems absurd to him to put in a pedestrian cross walk across a major, fast, highly traveled road. He suggested that this is putting pedestrians at risk when traffic is speeding up to get to the 45 mph, which is allowed on the Spit itself. He recommended reducing the speed limit to 20 or 25 mph at Pioneer Avenue, which he also does not agree with except when there are cross walks, or put in a pedestrian bridge. He voiced his concern that crosswalks make people feel safe.

Frank Griswold stated that some of the Council's comments tonight indicate that there are still many widespread misconceptions about what they can and can't do with zoning legislation. He told that Council that it shows him that there is a critical need for a training session on Zoning and that he would like to point out that there is a reason that Homer Code 21.28.020 does not address regulating business competition and raising tax revenues. These are simply not legitimate zoning objections. On another note, he voiced his hope that nobody here is intimidated by any recall threats, that he hopes the Council will honor their Oath of Office to uphold the laws, that he hopes the public will respect them for that and if not guessed they'd take their lumps. He read one line from Judge Cutler, the finest judge in the State, her decision from 1994: The Court notes that there is a jurisdictional split of authority on the question of whether a referendum may be used to approve or repeal a planning measure. The Court finds persuasive the authorities concluding that planning measures may not be the subject of a referendum. He thanked the Council.

COMMENTS OF THE CITY ATTORNEY

City Attorney Tans reported that the Local Boundary Commission has commenced the process to reconsider the one question the judge remanded back to it, which was the effect annexation would have on KESA. The first round of public comment on that question has already been completed and the next step is for the City to respond, which is due July 15th. After that the Department will make a preliminary recommendation and there will be another round of public comments on that. He noted that, although this is the beginning, it has started.

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 read a letter from the Commanding Officer of the USS LAKE CHAMPLAIN:

Dear Mayor Cushing, Please accept this token of my gratitude for your hospitality to the Sailors of USS LAKE CHAMPLAIN (CG 57) during our visit to Homer from May 31 through June 4, 2004. The people of Homer are among the kindest, most generous hosts I have come across in my 24 years of Naval service. The American Legion and Elks Club went out of their way to feed us delicious dinners. Homer Businesses offered us discounts and special services to make enjoying our time in Alaska more affordable. Taxi drivers took the time to show us their favorite sites. Mrs. So, the owner of a local Chinese restaurant, went out of her way to drive Sailors back to the pier after they ate dinner in her restaurant. An anonymous Homer Resident set up a tab to buy us hot drinks at a local coffee shop. The list of uncommon acts of generosity and kindness from the people of Homer to the Sailors of LAKE CHAMPLAIN is innumerable. It was truly touching to see the residents of Homer do so much to make our visit to Alaska such a positive and rewarding experience. Our time in Homer reminded many of us of what we signed up to protect and defend. I wish to extend my personal. thanks to you and to the people of Homer for all the kindness and support shown to the men and women of LAKE CHAMPLAIN.

Sincerely,

J.F. McCarthy , Jr. Captain, U.S. Navy.

Mayor Cushing congratulated the town for a great showing. He encouraged everyone to enjoy this coming month, this summer.

COMMENTS OF THE CITY COUNCIL

Councilmember Stark suggested that, very possibly, the two local newspapers might want to print a copy of that letter in their wonderful papers.

Mayor Cushing advised that he planned to give the letter to the Clerk and to let it just become a public document.

Councilmember Stark stated that the Chamber of Commerce will want to have copies of it sent out with their various promotional materials.

Mayor Cushing interjected that he would not be surprised if the Chamber and some of the organizations got their own letters. He reported that he did promise the Captain that he would take this opportunity to read it to the public in this form.

Councilmember Beck, in addition to Homerites being exemplars of kindness and generosity as this letter describes, voiced her thought that Homer can also be commended for ferocity and passion. She voiced her amazement, once more, that the library project is this far, that Council approved the low bidder for the building of the Animal Shelter and that the building of the Ice Rink is going to public hearing. She expressed her wonderment at where this ends. She noted that the City Manager is holding up the trails booklet. She commended the City volunteers for all of the hard work that has gone into everyone of these projects. She thanked all.

Councilmember Stark thanked the Governor in advance for his wonderful action in not vetoing the $130,000.00 that the legislature supplied for the Animal Shelter, which it turns out is greatly needed, and for the $1.235 million for the Float Plane Base on Beluga Lake, which is and has been very much needed for twenty to thirty years.

ADJOURNMENT

There being no further business to come before the Council the meeting was adjourned at 10:03 p.m. The next Regular Meeting is scheduled for Monday, July 26, 2004 at 7 p.m. The next Committee of the Whole meeting is scheduled for Monday, July 26, 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. Mr. Griswold inserted the word "zoning" when reading this into the record and does not exist in the actual text of HCC 21.28.020.

2. HCC 17. 04.160 (regarding access) and 17.04.165 (regarding Senior, at least 62 years of age. ).

3. Reference to the Petitioning Process, wherein he owns one of the highest valued parcels, and not the Objection Period.

4. The proposed cap was not mentioned however, is proposed to be at $1,000.00 of sales.