Session 00-05, 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.

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

STAFF: CITY MANAGER DRATHMAN

CITY ATTORNEY TANS

CITY CLERK CALHOUN

DEPUTY CITY CLERK BENSON

FINANCE DIRECTOR BAUGH

PLANNING DIRECTOR BECHTOL

POLICE OFFICERS: KUHNS, SHEALY, DEVEAUX GERAGOTELIS

PUBLIC WORKS DIRECTOR MEYER

ABSENT: COUNCILMEMBER: WELLES (excused)

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 City Council.

PUBLIC COMMENTS UPON MATTERS ALREADY ON THE AGENDA

City Attorney Tans gave a brief summary of the hearing in Kenai at 3 p.m today regarding the law suit filed against the City, which lasted in excess of one hour. Judge Link held no objection to Council considering Resolution 00-35 nor to Council taking action; however, if the Resolution is passed it cannot be filed with the Boundary Commission until the court issues another order. Judge Link set a hearing for Sunday, March 19th at 10 a.m. at the Homer Court House. In question is whether the notice of meeting was reasonable, meeting the statutory standards.  A ruling will be issued on Sunday.

Pete Roberts, Vice Chairman of the group Concerned Citizens Against Annexation, stated that they are very disappointed with the democratic process. He commented on saluting the flag here tonight. He stated that they want the annexation to be highly considered and feel that the Council is doing a very quick end run He emphasized that they are extensively unhappy and want to be heard. He pointed out that the City wants to change the life style of those being annexed. Those being annexed want a voice, but are being told that they have no rights. The state regulations may be loaded in the City's favor. There is a moral right to self determination and this country was built on democracy. Instead of a divisive hostile taking, he suggested conducting a series of public hearings over the next two months. This annexation would be a serious change and the City would never be the same again, whether positive or negative. He voiced suspicion that the City residents have no idea how, for years, this will water down services and without a doubt raise taxes. According to Mr. Roberts the non City residents are so irritated at the City, that with the addition of the area would hold 60% of the population and will change the City, will vote themselves benefits. This is not in anyone's favor and everyone needs to work together to increase the economy in this area, increase the economies of how this area is run and make things go. Wealth has to be generated to survive. The Council has a charge to try to provide for the City. He stated that as much as he hates taxes, like death, they are both coming. He urged the Council to open this up to a democratic process.

Marvin Peters commented about being told that he is getting the services and then told that he wants to keep getting them for free. He stated that there are some services that he does not consider services, in fact would pay to pass up on these, such as planning and zoning and the book of regulations, the real reason people leave town and not because of taxes. People expect to pay taxes, but not for what they do not receive. The problem with annexation are the regulations. He stated that he is willing to pay more to a Fire Service Area and stay out of town and willing to pay for anything reasonable. He commented that he would pay $5 for a library card and if that is not enough he would be willing to pay quite a bit to stay out of the City. In his opinion the reason there is not development in town is due to the regulations. The expansion would eliminate the distinction between city and country.

Warren Plumbo voiced his belief that everyone in this room has received something from the City and owe their living to the City in some form or another. The City is getting to a position where there has to be some kind of contribution from everybody. Perhaps there could be an incremental zoning ordinance where there is a main City with zones outside so individuals could have the ability to shoot a rifle or something like that. Everyone derives some benefit from living near a City center like Homer.

Poppy Benson commented on the current and continual growth of Homer since 1964, when the population was 800 and now is 11,000 in the Homer area. She noted three points for the vision of the government: Local versus non local voting rights. Less than half of the people that call Homer home can vote in the elections and therefore cannot select leadership nor can be leaders. City Planning to look at the boundaries, which are no longer adequate to for the 21st century. There are things happening out east that make no sense for Homer. Local government that is within reach or Borough government seventy miles away. She thanked the Council for taking on this gutsiest move.

Eileen Becker noted that she did not have time to prepare and expressed her opinion that the Council has decided how they are going to vote and that this thing has been railroaded through. She promised to do everything she can, within her ability to try and stop this annexation. Partially due to the process and lack of awareness of notices. She encouraged people to come to City Hall on Sunday at 10 a.m. There were 125 people who showed up at the meeting at the Kachemak Community Center very much in favor of not annexing. She disputed comments that fire insurance premiums would go down, which would take a rating from a 9 to a 3. She stated that she will work on some things for a Fire Service Area. If annexed the City Ordinances will be changed to make it more feasible to buy and develop in Homer, there are so many laws and restrictions and requirements so much that people cannot subdivide and build. Thirty percent of the sales tax comes from those outside of Homer. Since this annexation has happened she stated that she does not even want to come to Homer, this has created animosity and hard feelings and stirred this town up like the Council cannot believe. The City will not be able to maintain the roads, when the City has a bad snow day on Dimond Ridge a bad snow day means six to eight foot drifts. The process has been incredible and probably totally legal and something that will have to be reckoned with for a long, long time.

Trace Carlos stated that he did not have the time or notice to properly prepare his statement for this Council meeting. If the Council raises taxes it will hurt the community he lives in, the amount of money that will circulate is about seven times and where does it stop. He has a business in Homer and a budget that he has to maintain. Homer was set up thirty years ago and if the Country's forefathers saw how the United States was run today they would be disgraced and that was revelation given to them from God. He advised that he has built outside of the City and enjoys some of the things inside the City, those functions the Community puts on. He stated that he is opposed to annexation.

Robert Keyes recalled that annexation was one of the things he was really pushing when he ran for City government. He voiced his belief that it is time and feasible that the surrounding areas be brought into the City, if done in a peaceable manner and that they receive those advantages capable of the City. This is on the right track. He encouraged the Council to take some time and let everyone have their say and come to a consensus otherwise there will be a lot of animosity toward the City by those being annexed. If those being annexed can be brought around to see the advantages they are going to get it might be a real good show for everybody. He commented that there are about seventy percent of the people who run businesses within the City limits that do not live in the City limits, there is a reason for that. It is up to the City people to make everyone welcome in Homer and explain everything to them fully and give them an opportunity to be heard.

Buddy Risinger, President of the Forest Glen Subdivision, inquired why the City wants to annex up West Hill and Dimond Ridge when the City is having trouble supplying the City. Forest Glen Subdivision has been waiting for three years for sewer and water, is supposed to be on the list, and the list keeps getting bigger or smaller. He inquired where Forest Glen would be on the list if the annexation happens. The City should take care of the people that are now in the City, rather than annex. The City should get all of the City facilities to those who live in the City now. He advised that he typed some things up, the Manager has a copy and he will give everyone a copy. There are seventeen people living in Forest Glen Subdivision now.

Scott Adams stated that those outside of the City would not get any services. He reminded the Council of the petition of 600 signatures, against annexation, that he presented in May 1998, when the City was trying to go as far as Greer Road. He voiced a wonder as to why the City is not going that far this time, and why the City is not going out after that water resource, particularly in the light that water is one the City's big issues. The people who get bulk water hauled pay for it twice times over. He inquired why the Spit water users pay more for City water than those uptown. He asked what happened with the committee formed two years ago about the Fire Service Area and EMS Service Area, adding that he has heard nothing. He asked why this was not considered. There was an ex City Councilmember that wrote a letter that if fifty percent of the people in that area did not want the water then they did not have to have it. Why is the City trying to provide services to the outlying areas? If there is fifty one percent against then leave the outlying areas alone. The City should take care of what is inside the City before going after anything else. The 1/2% sales tax was put on to help pay for sewer. The non residents help provide services through sales tax. He pointed out that he has yet to work in Homer and never has had a job inside Homer. This is a nice place to raise children. He noted that he volunteers at the ball fields. He objected to the statement that non City residents do not help. He agreed with charging a library fee, a fire service fee, people would not rather pay taxes than $25 for a card. He emphasized that he is totally against annexation.

George Hamm advised that he has watched the City since it became a City and is not impressed. He pointed out that the Kenai Peninsula Borough is his government and wants it to stay his government. He stated that he does not want the City's regulations and does not want the City to force annexation. He asked whose feet get held to the fire, who is responsible for the City promises. The buck always gets passed. He stated that they do not want any part of the City.

Laura Barton noted in reviewing the petition that the City has a bonded indebtedness of $9,696, 755 divided by the estimated City population and everyone is indebted to the tune of $2,334. If annexation succeeds, using the figure of 6,841 new combined residents, each would be indebted $1,417. Indebtedness that those in the annexation area never got a chance to vote on. This is a lien against her property and is taxation without representation. If the City goes bankrupt, as in Colorado, the bond holders take the whole City. She advised that the only debt she currently has is the $648.78 Kenai Peninsula Borough indebtedness. She stated that she does not appreciate the thought of acquiring that indebtedness with no chance to vote on it. Regarding zoning, she pointed out that she watched Homer zone a jeep business right out of town. The City says that non City residents do not pay their way, what about sales tax and the sales tax going for sewer. Dimond Ridge is not a gravy train, there is snow to fight and other problems to deal with. She stated that if the City taxes on top of that it will create more hardship than she really wants to handle. She voiced non objection to paying for a library card, although pointed out that she got a free library card from Kenai. Sewage is a problem. She recalled when Art Hawk, Soil Conservation Agent, recommended against building on the Homer Hillside due to the lack of stability. She pointed out the poor soil peculation noted in the petition. She stated that she personally does not want the City water, the regulations and is perfectly happy to contribute to a Fire Service Area, because of EMS. She plans to live until 120 and does not foresee sewer and water being available on top of Dimond Ridge within that length of time. She thanked the Council for their time and consideration.

Doris Cabana noted that she did not have time or notice to properly prepare and that her family is a little example of a family of five children and long time Alaskans who settled outside of the City in the Kenai Peninsula Borough government and who are totally opposed to more control taken out of their lives. She stated that they pay taxes to that entity, are not sure the City is solvent enough to take on this annexation and was under the impression that the City had to be able to support annexation to do it. On page 49 of the report it states under Public Works that the City will not maintain any roads until these are brought up to City standards, who will take care of those roads until then. The Kenai Peninsula Borough utilizes a private contractor for $80,000, the City interim rates are $4,775 per lane which makes it double that or $199,000. That is just a start, the City will then need more people, more part time people, more equipment. She wondered how the City is planning on paying for this with all these new residents of the City. She asked to see some kind of figures not just something given out about the indebtedness of the City. If the City wants to take this on the people should have that right to know what they are getting and how the City is planning on paying for services. The expansion is irrational, those to be annexed have not been given any notice, this is secret stuff and it is just terrible. She stated that she is so tired of being told that they don't pay their way. Those to be annexed do pay their way, the City gets grants from the borough, the state and the federal government and all other kinds of grants. The City should not say that they do not pay their way, because they are United States tax payers and pay City taxes. Regarding the boat harbor she said that she would not get started on that subject, but did suggest a line by line audit such as was done in Seward. She voiced her opinion that the City residents don't realize what this will cost them. She briefly mentioned the water shed jurisdiction ordinance 99-47 adopted by the Kenai Peninsula Borough to give the City extra territorial jurisdiction over their watershed. This annexation will hurt everyone. This should not be done the way it is being done. She read off the designated posting areas and stated that there was no posting. She asked where the notice was placed and asked the Council to just talk to people and give them a chance.

Randel Jones provided a typed copy of signatures of a petition he circulated at eight different businesses and obtained 371 signatures from City residents and non City residents. He advised that Pete Roberts has the originals. Those who signed that are City residents have sense enough to see what this will do to them. He asked the Council if they would be willing to sign a contract in the event that the annexation goes through, that within a reasonable time frame the so called services would be supplied and would be willing to withstand the consequences of breach of contract. He asked each Councilmember to search their souls to see if they are willing to put their name on that contract. He stated if he were in their position he definitely would not sign.

Terry Jones inquired if the Council had really thought about the fact that any time taxes are raised for a business owner that business owner does not pay the taxes, but passes that cost on to the customer. City residents use these businesses outside of the City and these costs will be passed on. She named a couple of businesses in the annexation area: Pudgy's Meat Market, Down East Saloon. She asked the Council to search their hearts and figure out if they want the added tax burden.

Lee Krumm stated that he used a Homer Realtor to buy his home outside the City, because he did not want to live in the City. He further stated that he did his time by spending twenty seven years in the USCG and retired here. In the last century the term was coined, Shanghaied, which applies here and is when people are forced to do something against their will. It is a myth that this is about growth, somehow sharing the cost and is cheaper for everyone. More people, more business does not spread it around for every dollar in, it's $1.50 out. He commented about the statement that the people outside the City are deprived because they do not get to vote in City elections, emphasizing that he never heard anyone complain about that. As far as City government and the Borough government and the distance, he stated that his boss lives in Juneau and that works just fine. He advised that in 1990 he came to City Council meetings, liked the way things were then and came back, because of the way things were. He voiced his objection to progress at any cost. Tourists come to Homer and spend money and pay sales taxes and do not require a lot of services. He noted that he has never used police or fire and pumps his own water and has his own septic, which he paid good money to have. Those in the annexation area are contributing money to the City and volunteering in the City now and are not using the services. He quoted a famous line in a Pogo comic, "I have met the enemy and he is I." He commented about people creating their own problems. There are too many regs in the City and those who do not live in the city do so purposely to avoid taxes and regs. He commented on building his home and the nightmare of building permits if he lived in the City, adding that his home would pass any City standard. He concluded that his family is obviously opposed to annexation.

Roy Morris commented that he considers himself a fair minded person. He got a copy of the memo that has circulated in the City and the first paragraph says this should not be released to the public. He stated that this immediately set his dander up. He stated that his father fought in the war against fascism. He considers this taxation without representation and secret meetings behind closed doors, fascism.

Marla McPherson voiced a willingness to consider a proposal for annexation, because she calls Homer her home regardless of where she lives, inside or outside. She commented on the two national magazines that noted Homer as one of the best cities to live in and cited some of Homer's attributes. She commented on some of the things she values about Homer and the opportunities here. She pointed out that the Council makes the decisions about things that affect the things she loves and about this area and she wants what is best for this place to spend the rest of her life here and for her children. A lot of folks are willing to give money to those things, churches and civic organizations, that provide intrinsic values that are dear to their hearts and families. There are rules no matter where one lives. The Council can be held accountable for their decisions and City residents decide who is voted in to make the decisions. She stated that she wants to be able to vote in the City. She urged the Council to keep in mind that the public process is extremely important and some mistakes have been made. She suggested that taxes be based on what services people are going to receive. She asked that information be easily accessible. There should be a reasonable limit as to how large homer should go, how far the boundary should go. She voiced an interest in where this is headed and that it may not happen this time, but the next time it comes up she will always be willing.

Bill Pepper thanked the Council for providing tonight's entertainment, because when someone lives outside the City there is not this form of entertainment. He commented on services and the way he sees it is that the City wants him to be on their team for a price and he does not want it. Regarding roads, the grader is in his neighborhood two times a year in the winter when it is snowing and that is fine and in the summer the roads are maintained just fine. He wondered why the City wants to compete with the Borough on a job that is just fine for an additional cost of $119,000. An unmanned fire station on Dimond Ridge will not help him no more than the existing system, if a fire wants to win it will win, the whole place being a fire hazard. He asked the Council to not send this annexation petition to the boundary commission, to give the outlying areas some time to investigate options and see if the people in the outlying community can squelch this annexation idea by providing a Fire Service Area that eases the burden of the City. The petition states that the City area will double in size and will require the addition of two officers. The area is currently being served by three state troopers. He stated that his security is in his gun cabinet and crime is very low in this area. Here again the City is competing with an existing service provided by the state. Regarding sewer and water, he stated that he has it already and it does not cost him a monthly bill. If the City wants to collect fees for people that need water, he suggested setting up a spigot and charging for it, which is already being done at Eagle Quality Center. He inquired why the City did not put water and sewer lines in when the Baycrest Hill project was being done. The paper said that safety concerns require annexation. Mr. Pepper stated that he does not buy into the reasons listed for annexation.. He stated that he is looking at a $600 tax hike and getting no services for it.

Sallie Dodd stated that she has been doing her own number crunching. She emphasized the high number of volunteers that work to provide many of the services of the City, which the City is saying the non City residents get on a free ride, and that at least half of the City volunteers live outside of the City. City matching grant dollars are done by and with volunteer hours. These are additions to the City's essential economy not a deficit. All the non City residents that live in the Borough jurisdiction contribute much more money than given credit for, besides the many organizations that they volunteer for. She listed items purchased by non City residents and pointed out the sales tax paid by them. She recalled the Anchor Point woman who donated $20,000 for the library and grants written for the library were written by a person outside the City. Twenty five of the Fire and EMS volunteers live outside the City, twelve live inside the City. She reported that she has a scanner, listens to the calls, there are some false alarms and a lot of calls inside the City that the non City residents respond to. She stated that she is quite pleased with the state troopers. Regarding Community Schools the City pays one quarter, the Borough one quarter and the state one half. She listed many of the organizations that have volunteers most of which are from outside the City. She discussed the bulk water wherein millions of gallons are sold outside and inside the City with additional fees to pay for the City's infrastructure. She suggested selling the non taxable City land. The proposed annexation is a bad thing, the non City residents cannot afford the City. She stated that if the Council thinks she is passionate now, wait until the City forecloses on her property.

Joel Cooper stated that he is not a very big fan of the NPDES permit, Resolution 00-30, and that the City should work to maintain compliance without having a permit. This is a permit to have a mixing zone. It appears that the treatment plant is not in compliance with ammonia, he encouraged the Council to do what they can to make the treatment plant in compliance without the permit and therefore not need the $5,900. He commented on the annexation issue, that is a lot to consider. He stated that he would consider it with conditions and asked the Council to slow down the process and take into consideration and get everybody's input and with that input the Council may learn that they can do things and get a lot of people to agree. He noted that he has heard a lot of good points and would like to see a distinction between city and country. He expressed his opinion that everyone needs to be held accountable on how land is used in this area and work together to develop land ethic. He stated that he thinks the best way to work together is to have a local government. One thing he said that he does not understand if this is working toward a city government then why is a borough government needed. He asked that taxation be according to who is getting what services. Let people know where their money is going and for what.

Dave Becker commented on his history in Homer, his business, his observations of things that have happened in this community, and his reflections on the quality of life and that this is a very good place to raise a family in comparison to where he moved from in California. He spoke not so much to the merits of the process, but that many things about the annexation bother him including what he considers a short circuiting of the process. He emphasized the steps he took on the radio to inform the public of what appeared to be a release of the City's petition on March 10th with a vote scheduled on March 13th. He stated that not only was the time totally inadequate for public input and as a result of some of the information they put out on the radio stations the public got wind of it sooner and there was basically a public out cry. He further stated that as he understands it the City rushed to get the petition out a week early. The process is bothersome and the City has not provided for public input on this major life changing matter that will affect people's lives for years to come. Not only has the City put this on a fast track, but has eliminated the public debate process through the resolution process over the Ordinance process. He complained that the Ordinance regarding battery dumping is minor compared to the magnitude of the annexation issue, which should have been by Ordinance. The public perception is that negative response was anticipated from the public so the City was going to shift the burden of public process onto the Boundary Commission. He objected to this process and stated that the City could have allowed for adequate public debate and could have organized some informational meetings and allowed for the public to have their input thus allowing for the process to proceed with a whole lot less inflamation of public opinion. This is a black eye on the City of Homer. He stated that his faulting is with the resolution process, a major error by not using an Ordinance, which would have provided for adequate public notice and input. He said that he wanted to make the Council aware of the ten mill cap proposal for the ballot in November and this supposed wind fall the Council is anticipating in terms of additional revenue may not in fact be there, the addition five mills. He asked the Council to not vote on this resolution and take some steps in terms of public relations to consider the folks whose lives will be affected. Get all the facts and figures out so that people may consider options.

Mark Regstadt stated that he intends to call this home, considers this expansion a big step, rarely do cities shrink and are difficult to finance and keep going. He pointed out that as long as he can remember Alaskan economy has been boom bust and that he has heard that the economy is stabilizing out. If spending habits with the federal government, that possesses the majority of land and resources, changes many things can change and it can become a very difficult thing to pay for. There have been a lot of explanation of inequities with water and sewer. He stated that his experience in Alaska is that building seasons are short, the climate is harsh. He suggested reading records regarding maintaining transportation systems on Dimond Ridge, which receives more precipitation. Developing roads to City standards may be more expensive than to maintain. As the City provides more services there will be more processes, which will create more and a rapid development in an area and will require water and sewer. To pay for that in a large geographic area will be cumbersome and expensive. He asked the Council to give careful examination of this matter. He stated that he is in favor of very efficient government. Boroughs are an Alaskan invention easy to finance, communication is very good right now and seems to work pretty well. As far as local government it is difficult. A large part of financing a City is a commercial activity. Homer, at different points in time, has not seemed to be the most friendly place for new enterprises, small or big. He urged the Council to be careful in considering this at this hazardous rate, which did not give him time to formulate or write his thoughts. This is too quick. He urged the Council to not vote on this and to try and get the input of the entire outlying area. The people did discuss about all the volunteer help and the City has a lot of talent and good information to benefit from if the Council slows the process down and lets those talk who will have their lives and futures affected.

Mari Walli commented on her husband's family's history since 1909 in Homer and donation of the land for the Homer Public Library. She objected to the statements that the non City residents do not pay their share. She reported that eighty five percent of the Borough taxes pay for the Homer schools, solid waste, and borough administrative services. She stated that she did not know the percentages for borough service areas except the road service areas. In road service areas eighty percent was spent on maintenance and fixing, 13% or less went to administration. She voiced her opinion that the way the City is set up they could not do this with their services. The geographic area for the annexation is too excessive. She stated that she does not believe the City can meet the demands of title 29 regarding requirements of a first class city. Right now the City cannot meet the parks and recreation powers and has agreed to join by service area ordinance, which means the City is including people in the jurisdiction of the Kenai Peninsula Borough known as the South Peninsula to assist the City with those services. If the City annexes this area it will not become the duties and powers mandated by that title, that it would continue to be a service area. This says that the City does not have the money or funds or facilities to administer and provide what that service area is going to require or that the City is anticipating. Something does not jell here, right. She asked the Council to really look into what the City is providing and not providing. The non City residents do pay dearly for services. She commented about their appeal regarding the borough assessment on her inside the City property that increased three hundred percent. They had to provide facts went to the City, HEA and a real estate agent: Between 1994 and 1998 there were 24 permits per year. HEA installed in 1998 less than five meters of these there were only two small acreage that were subdivided, the others were just additions or garages being built. HEA and real estate showed that there were between 300 and 320 electrical meters approved out of the 375 applications. These were installed Ninilchik south and east outside the City limits for twenty new subdivisions. She asked what has happened to Planning and Zoning, the department, what has happened that has stagnated Homer so that everyone is moving outside the City.

Mayor Cushing called for a recess at 9:05 p.m., reconvening the meeting at 9:17 p.m.

Douglas Stark, Chair of the Concerned Citizens About Annexation, voiced his disappointment that those affected in the annexation may not get to vote. This organization represents 2,700 people that believe in voting. He voiced his doubt that this would be successful, but if it is the people will have the chance to vote. These people will be voters, they are organized, angry and have the ability to communicate with the 2,700 people. The organization has the voter lists, property ownership lists, have volunteers, operate on donations and use the fax, email, phone etcetera. When the City has elections the Council will be happy to know that this group will be voting and will be fairly consolidated, a high percentage of people voting in the annexation area and the bond issues will not fair well. There are some things the Council should be aware of; recall, initiative, referendum, elections for Council and elections for Mayor. He stated that if the Council annexes this area there will be some substantial changes rapidly, some of which the Council would probably prefer not to have happen. It will probably be good for the area, but it will not be too good for the present powers in the City of Homer.

Millie Martin stated that she is one of the infamous non City residents. She thanked the Council for allowing the group to speak. There are a lot of deep seated feelings. She stated that she is gravely pained at seeing a community that she so deeply loves so torn apart, it troubles her and she does not believe it had to happen this way. She commented that in the twenty years she has lived here she has watched the Council's actions with a great deal of amusement, has often been at odds, but has always appreciated the courtesy extended to those outside the City, and how be it a somewhat the reluctant recognition of their contribution to the City. She voiced appreciation for the support the Council has extended to the greater community time and time again and over the years there was a trust of the citizens of the outlying area, which has since been lost. She reported that on December 13, 1999 the Council adopted Resolution 99-115(A) with a time limit and last fall the Borough approved an Ordinance extending the extra territorial powers for the City 's watershed. She stated that she is a member of the Kachemak Bay Advisory Commission had that body had the ordinance before them and as a member she voted for that Ordinance. She noted that if she had been aware that it would be a part of an annexation process she might have thought twice about that. She explained how this would affect her personally since she is on a fixed income with a large piece of property that she may have to sell part of to pay the taxes. She voiced her belief that there are others in the same boat and to her existence the additional taxes are a tremendous burden. In reviewing the petition she stated that she did not see any where there was a value of the volunteers listed that live outside the City. When non profits apply for grants they have to show the volunteer information. It would be a valuable exercise to look at the sales tax generated by the City between September and May, when the complete community is supporting Homer during the lean times. She voiced concurrence with Dave Becker. The City Council has the opportunity to withdraw this resolution for annexation, to go ahead with this will do great damage to this community and will create a permanent loss of trust that will take a great many years to heal. The Council has the opportunity to reach out to the Community, to work with the community to work together to develop a win win plan and regain community trust.

Karen Hamm stated that she spends a majority of their money in town. No one is perfect and everyone makes mistakes, which includes the Council. She stated that, unfortunately, when the Council together makes a mistake it affects a lot of other people. She voiced an awareness of the budget problem and suggested credit counseling services that are available. Many businesses suffered when the cruise ships decided not to come here. She noted that when she lived in town all of her money went to town and the services she received were very, very limited. She commented about a family in town that lives across from a $14 million school yet they have no water and no sewer. She voiced her preference for living outside of town. She reported that seventy five percent of their customers live inside the City limits and if taxes go up it will affect the cost to the customers. She asked the Council to consider what they are doing, think about it before they do it and that the Council does have the opportunity to withdraw.

Charles Davis stated that the Council really knows how to drive a wedge between the community and that they do a real good job of it. If the Council had come to the people and said that the property contiguous to the City Limits would be annexed, that property already benefitting from City services it would be a reasonable thing. This is totally unreasonable. He voiced his opinion that those who will benefit most will be the attorneys, because this thing is going to be in court and will be a terrible expense to the City for a long time. This City has gotten away with a number of unconstitutional acts for a long time, one being that the City can dole out the benefits on an individual basis, but charge the same taxation for everyone. The Councilmembers, Mayors and City Managers streets, subdivisions and areas get water and sewer and streets paved. He stated that people like himself never get water and sewer. The City runs the water and sewer fund in a way that it never builds up enough of a balance that it can expand on its own. He pointed out the depreciation deficiencies. He guaranteed that he and the City are going to court since the City can offer these new residents services that the City does not offer him. This is something the Supreme Court will have to look at and it will be expensive. He asked the Council to back off and hold public hearings and invite the public into the conversations. The idea that the City can put something like this together and only the City employees, a lot of whom are not City residents, are out there legislating and making law, how unconstitutional is this? The Council has already divided the town and the area. He said that a lot of the blame is on the City Manager that this Council hired. He concluded that if Jim Rinehart and Charlie Davis can agree on something, it would be a cold day in hell, yet there is agreement on this issue. There are at least one hundred inaccuracies, even some mathematical errors in the annexation document.

Rick Harness stated that he is glad to be able to speak and that he concurs with Dave Becker. He noted that he knows and has known may of the Councilmembers. If this matter had not been pushed and approached differently there would not be as much dissension. This matter affects people's lives. He reiterated comments about the snow fall on Dimond Ridge and how the City will deal with keeping that road open. The City of Kachemak City should be considered in this annexation, why have a hole in the donut. It is evident that Kachemak City was designed for the purposes of staying outside of the City of Homer and established a fire station with a fire engine, all grant money and has a contract with Homer. He emphasized the importance of looking at options for the outlying areas. No one has heard what options were taken by the City. Will this cost more in the long run than what the City anticipates to make back through taxes? Council is moving too fast for the Council. He noted that all but one of the City residents have urged the Council to slow down and include input from those who are going to be affected. Homer was not built on a fast track method. He stated that he is willing to pay his fair share of services he uses, willing to pay for a library card and if annexed will pay taxes, but the City will have more to pay than what some of these numbers reflect. He inquired who analyzed this document. The numbers do not reflect the road work and maintenance. Comparisons should be done with other areas. Things could be cleaned up in the City, fees for fish coming over the dock were ignored for years, that is income. There was a commercial entity on the Spit that was not paying electricity for a number of years. There are other little things. Public Works takes on major developments and has soured. He urged caution about annexing so much without everybody's input and without analyzing. He suggested looking at history and cleaning up the City's act and looking at options. There are some real question marks regarding these numbers. He urged the Council to take this a little slower. He relayed a conversation with a Councilmember last week wherein he asked why the Council is moving so fast and secretively and bringing the petition out at the last minute. The Councilmember responded that they knew there would be a conflict. He noted that Resolution 99-115(A) asks the City Manager to develop a working plan and a time line, the word 'petition' was not heard in the Resolution. He stated that he does not want hard feelings, wants this to be fair and wants the Council to slow down and take their time.

John Gutchair commented that the City has painted this as if the City is going to get something for nothing. It seems that the City is going to be able to tax a much larger area without having to provide a lot more in the way of services to those in the annex area. The argument is that those who live in the annex area are City residents in all but name, that these people use town, work in town and are just kind of getting out of paying taxes. He noted that with the privilege of taxation comes the responsibility to govern. He noted that he and his wife ride a snow machine to get back and forth from the car to the house or even to work and most of the people in his neighborhood ski. Many people on Dimond Ridge own snowmachines. He commented on assurances made by the City Manager that Ordinances would be passed if the annexation went through so that people would be able to keep these snowmachines and be able to ride them even though in the City limits. He stated that if annexed he did not want to see people riding snowmachines in City limits, but did not care so much about Dimond Ridge. He commented to the Council about what may seem contentious tonight, however, when the Council sits as the arbitrator of their disputes it will not be very much fun. It is not just increased capital expenses, it is increased responsibility. He stated that he personally would feel better about being annexed if there were some assurance from the Council that they had thought about that responsibility and that they want it.

Kent Redman commented that the City of Homer is proposing a very complex, far reaching, radical idea. He guessed that this is probably the most far reaching, significant, affecting other people's lives proposal than anything that has ever come across Council's desk. A proposal like this requires in depth evaluation. There are many issues and many considerations. No one has had the time to think this through, few people have had the time to read the entire proposal, let alone give Council the benefit of their opinions. This is a big, big issue has been reduced to forty nine pages and has not been made public until, probably, less than two weeks ago. The Councilmembers have not had the benefit of discussing this with their neighbors, nor the benefit of discussing this with their constituents, nor the benefit of discussing this with everyone that will be affected. This is a profound proposal, whether it be good or bad it needs to be honed, refined and the Council needs to listen to the people they represent, who have been cut out of the process. There has been no public process, there has been no public input into the creation of this proposal. He stated that as far as he can see this was put together by a hand full of people. He objected to the Council shoving this out of the public hands and into Juneau, a serious mistake. He voiced a hope that he did not loose a lot of respect for the Council, adding that public process keeps the community together. This is a very, very divisive and harmful document. He urged the Council to please hold back, back away from the empire building that is not always the solution and give time for themselves and the community to consider every single implication and to work out the bugs before sending it out of town.

Dean Ravin stated that the City has fairly clear boundaries that have worked for a long time and are adequate for today. The Council is moving too fast to try to expand their nice little city. He encouraged them to take a ride up Dimond Ridge road, it is obvious this is out in the sticks, it is not the City. He asked the Council to live within their means, manage the City within it's current City limits and leave all those outside well enough alone.

Shawna Fee suggested revising the annexation map a little, it seems like an arbitrary straight line from the Sterling Highway out East End Road. Communities are being left out and semi rural areas are being brought in. She said she could agree with annexing the watershed so that the City could make sure that septic systems et cetera were not harmful to the watershed and take some responsibility regarding services. She commented on knowing that the City of Homer is lacking a lot of services as it is. She would like to see the City of Homer give the City of Homer the services it needs before this annexation happens. She concluded that in time some people may be able to look at the watershed and it would be nice to have good water.

Linda Feiler commented on the watershed and the Borough trying to get Anchor Point into being a City for a long time so they could be taxed. It would be nice if the Borough woke up and decided to took care of the watershed. She expressed her opinion that the Borough had some input with the City to tell the City if they want water, water is a problem for the City, go get part of Anchor Point then your problems will be solved. She stated that she does not know what goes on up at the Borough and that she has not figured them out yet. Anchor Point should not let Homer have part of their property and if Anchor Point does ever decide to incorporate or decides what to do with Anchor Point's watershed they should be able to tax Homer for the water. Anchor Point has water and gravel and the gravel at Anchor Point built this City of Homer as well as the people of Anchor Point. The City of Homer has caused quite a stir with making them feel like some type of alien. She commented on spending money in Homer and paying sales tax and hating to come here because she spends money. She did not believe the City is running in the black and believes the harbor should be able to make a fortune. If the harbor did run things properly the people in Homer would not be running up to Anchor Point to pollute the beach and run off on the tractors up there, which she also does not particularly love. She voiced agreement with about 99% of those who spoke tonight.

Eric Bremicker gave a few quick points: The growth and upward evolution of communities is very necessary and is inevitable. There is a lot of potential in this community for growth. There is tremendous resources of diversity among the people, the quality of the people and surroundings in the community. The City, as a legal entity, does not seem to take very good advantage of the quality and bounty around it. The bounty is tremendous. Other towns in America situated in exceptional locations are amazing places and destinations for millions of people. The organization that runs this City, is not living up to its potential, not even close. This should be an amazing township. People are fighting for their basic needs, for services. The discussions should by on fountains, on cobbles and on statues. There is no reason to be squabble over basic needs. He said that this is wrong, he smells a rat, this is not right. There is something not right about the way money goes through this town, the harbor should be making a fortune. The City should be making a fortune. The prime luxury view is here, the amazing bay, land resources, and the Spit. The geography should have led to a lot more than this. The only immediate need for annexation is to vote the Mayor and Council all out and elect someone that can take care of things. It is an inevitable result that there would be turn over of power. He stated that he has been here long enough to doubt if it is the elected officials that are causing the problem, it could be a higher or contracted party that is the problem or a combination. He advised that for a long time there has been one thing he does not get from the City and that is gas that he purchases at Fritz Creek General Store, because it is cheaper and even the City sales tax would put it over the price available in town. Obviously the people outside of town get tremendous benefit from the town. The City government, at this time is not ready. He applauded seeing people taking large, decisive, bold actions, but the City is just not ready at this time, would be on the verge of bankruptcy and is being hasty.

Kathy Corp thanked the Council for being patient and that they may have noticed that the comments are almost unanimous in opposition to annexation. Her question to Council was why aren't they. She added up the figures of the estimated revenues of personal property tax and sales tax, $770 per person in the City and $648 outside the City. If the City cannot provide services at the higher rate how is the City going to provide services to the outlying area. She stated that she does not think it adds up.

Fran Herber commented that the community so many are talking about was a community and was completely built from Anchor Point and Ninilchik, East End Road and everyone worked together to build the town and the support services. She voiced her big concern that the community feeling has been lost. She stated that she hates to see the division, because a lot more can be gained by coming together and working together instead of driving a wedge and making people angry and taking their business north rather than keeping it in Homer. She stated that she will not be the only one that goes elsewhere for gas and groceries. She voiced her belief that the City of Homer will pay dearly and asked the Council to not vote this in and give the people a chance.

Vi Jerrel, PhD, stated that she did not have the time or notice to properly prepare. She voiced opposition for herself and her family to Resolution 00-35, the petition by the City of Homer for annexation to the City of Homer. She asked that the City of Homer immediately stop the annexation proposal and end it now. The City's annexation proposal is listed on the March 13th agenda as: "Resolution 00-35, of the City Council of the City of Homer, Alaska authorizing the annexation territory to the City of Homer, City Manager." She stated that Borough Mayor Dale Bagley doesn't support this annexation by the City of Homer and made that very clear. The United States Constitution is the supreme law of the land and everyone has to go by it. The US Constitution 5th and 14th amendments and the due process clauses guarantee rights that no person can be deprived of life, liberty or property without due process of law which include proper notification and the right to be heard. The Alaska State Constitution also guarantees due process. She told the Council the way to end this tonight, this annexation proposal. The City of Homer annexation petition deprives and robs people of their constitutional rights and not limited to those rights. This petition is listed as a resolution and not an ordinance. An ordinance requires a hearings and notice, this petition does not meet the lawful requirements by listing it as a resolution and not an ordinance. The annexation proposal should be thrown out, voided and nullified and withdrawn now by the City of Homer. She gave the history of her family as Alaskan homesteaders and American citizens who live in a democracy. She stated that this annexation proposal and the secret manner in which it was done robs everyone of their constitutional rights. People have a right to vote and to be part of the decision making process. This annexation proposal was not put to a vote of the people of the area. The entire proposal fails to meet the requirements of a petition, has inaccuracies and false information and statistics. City government is not needed. The annexation is not in the best interest of the City, the borough, the state and the territories to be annexed. She commented on reading somewhere that the papers indicated that the Council gave the City Manager direction to look into the possibility of annexation things, information, time lines and so forth. It appears that this procedure was not followed and that the City Manager went ahead and just did the annexation proposal. She stated that she made the public aware and they are forming service areas and will fight this annexation in any way they can. She commented about an eight page secret document, a memorandum from the City Manager that was not to be released to the public. She commented that if she had not become aware of this secret document and made the public aware everyone could have woke up one morning secretly annexed to the City of Homer. She noted that later when the public opposed it the City came out with a 25 page document available at City Hall at the counter. She commented on the meeting she set up at the Kachemak Community Center wherein one hundred and eighty people attended. She stated that she invited Ed Overts assistant to Borough Mayor Bagley to present information on formation of a borough fire service area. Many people signed petitions opposing annexation and favoring forming borough fire service areas. She stressed that the people are getting help from the borough's departments and borough attorney in actively forming borough fire service areas and other borough service areas. The public intends to do this and it is in the process. She advised that she extended an invitation to Mayor Cushing and him to the Council to attend the meeting. Mayor Cushing graciously said he would be in Seattle for a wedding. The invitation was also extended to Kachemak City Mayor and Council. The zoning the City would do would deprive people of the right to develop and to enjoy the rights of life that they now have, such as gun laws, hunting and fishing. There could be restrictive gun laws. The public will fight this and fight this until they win. There will be so many lawsuits and judgments against the City that the City will not have the money to run the City and perhaps won't have money to open City Hall. She relayed Louise Tulin's comments: The City does not have resources to provide services for fifty percent of the people in the City now, the City does not have resources to provide services for areas proposed to be annexed, and the City cannot meet the requirements of annexation. There are a lot of borough owned lands, meaning land owned by the people of the borough in this area proposed to be annexed. Many borough lands are in the proposed annexation area. There would be strict zoning and regulations and the borough owned land would be included that belong to the people. Borough lands need to be protected from the City. The Borough ordinance granting the City of Homer jurisdiction over the Bridge Creek Watershed, in her opinion, appears to be unconstitutional and not noticed properly and could have a lawsuit filed to have the ordinance vacated. She noted that the City made no attempt to drill water wells or evaluate other water sources. She urged the Council to nullify, void, vacate and throw out this annexation petition

Mayor Cushing commented on the coverage in the newspaper on this annexation issue and that the memo referred to was from the City Manager to the Department Heads.

Kathy Oakland advised that she is married to Dennis Oakland who worked for the City for a long time and who knows how the City works. The annexation subject has come up before and every time the City has looked at this matter it has not been financially feasible, is a wash or would cost the City more that it will get back in taxes. She asked the Council to consider that. She commented that they had purchased property on Crossman Ridge for their retirement and now find that it is going to be annexed and may have to sell off parts of it to pay taxes and is concerned about the snow plowing services that they now have, there are all kinds of things. She asked the Council to consider everything and consider withdrawing the petition. She stated that she is not sure the City can afford it, there has not been enough input and other options should be considered before making this decision.

Chelsea Jones advised that she is not of legal voting age, but wanted to voice her opinion that she is against annexation. She stated that she is more against the fact that the Council and the City Manager tried to hide this from the people. She pointed out that in the future she will be a legal voter and wondered how she would know who to trust when things are hidden. She inquired how she would know what else is being hidden. Many of the Homer Volunteers in the Fire Department are from outside the City limits.

Darrell Walker voiced agreement with most of the comments. He stated that he came to a Council meeting once before to object to something and was told by Mr. Cooper that only the people come here to object. He stated that he does want to vote no.

Gill Mayforth, Fire Department Volunteer, urged the Council to consider the same things he has to consider and evaluate in a very short period of time when he goes on a call: What is the goal? What do I have? What do I need? What am I doing? Who is in charge? He challenged the Council to evaluate the goals and hoped that this is the beginning of the process. He commented about the wall picture taken a few years back at the high school and the community here tonight. If the goal is to pay for services the City can find other ways, there are other ways. Many of the community members live outside of the City and have said that they pay their sales tax. He asked why a small portion of the sales tax couldn't be set aside for emergency services. Is the goal truly to ask everyone to pay for services that go over the City line or is it to make up for budget short falls that is a higher governmental body's responsibility. The proposed annexation area covers about half of the actual Fire and EMS service area, so if a service area is investigated it is important to remember the size of the actual area served. State and oil dollars are getting tighter and the cities have to make up for this, but do not lay that shortfall at the fire department's door. Be willing to look at other ways, at all the options and be creative. He stated that it sounds like the Council has their work laid out for them and knows the City Manager does and recognized that the City Manager is between a rock and a hard place and on a sinking boat at the same time. What happens to those over the line? What happens to his fellow volunteers that are suddenly over the line? That gets really divisive, ask Soldotna, Kenai, Spenard how that feels when the fire truck or ambulance stops at a boundary and a house is burning across the street. The ambulance is life safety not even property. He concluded that he does not envy the Council their job and that he will keep doing his.

Cynthia Morelli said that she lives outside the proposed annexation area and asked what is enough and how large does the City want to be. What is valuable that the City has and when the City of Homer has matured to really live up to the quality of its location that may be the time to ask for extending the boundaries for the physical limits of the City. She asked that the Council please really consider what are the City's most valuable assets, to the City. She encouraged the Council to use the public's collective energies to make the absolute best of what everyone has rather than wanting more. Maybe the City needs to mature more. Expanding City limits to cover a larger square mile area is not equivalent to intensifying the quality of the area. She urged the Council to think hard about that and thanked them.

RECONSIDERATION

CONSENT AGENDA

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

A. Homer City Council regular meeting unapproved minutes of February 14, 2000. Recommend Approval.

B. Homer City Council regular meeting unapproved minutes of February 28, 2000. Recommend approval.

C. Memorandum 00-10, from City Clerk, Re: Request to Change Homer City Council Regular Meeting Date from March 27^th, 2000, Seward's Day, a Holiday, to March 28^th, 2000, at 7:30 PM. Recommend Approval.

D. Resolution 00-30, Of the City Council of Homer, Alaska Authorizing the City Manager to Expend $5,900 for the Environmental Protection Agency, National Pollutant Discharge Elimination System Permit and to Execute the Cooperative Agreement between the City and the Alaska Department of Environmental Conservation. Public Works. City Manager. Unbudgeted expenditure from Acct. 300.5210.500.

Memorandum from Public Works as backup. Recommend adoption. This item placed under New Business.

E. Resolution 00-31, Of the City Council of the City of Homer, Alaska, Entering into an Agreement with the State of Alaska Department of Environmental Conservation and the City of Homer for Community Spill Response. City Manager. Recommend Adoption.

F. Resolution 00-32, Of the City Council of Homer, Alaska Authorizing the City Manager to Purchase Twenty Concrete Septic Tanks as Described in Purchase Order 50669 from Consteel Concrete Company in the amount of $25,500.00. Public Works. City Manager. From Inventory Acct: 300.1417.

Memorandum from Public Works as backup. Recommend Adoption.

G. Memorandum 00-11, from City Clerk, Re: Travel Authorization for the Mayor and/or City Councilmembers to attend the AML Spring Conference in Juneau. Recommend Approval. From Accts. 100.5236 & 5237.100.

H. Resolution 00-33, Of the City Council of the City of Homer, Alaska, Requesting FY01 Safe Communities Funding from the Department of Community and Economic Development. City Clerk.

I. Memorandum 00-12, from Mayor, Re: Hazel Avenue City Lots. Recommend approval.

YOURKOWSKI/MARQUARDT - MOVE TO APPROVE THE RECOMMENDATIONS OF THE CONSENT AGENDA.

MARQUARDT/ - REQUESTED THAT ITEM D. BE PLACED UNDER NEW BUSINESS AS ITEM A.

VOTE:(Items A - C and E - I.) YES: FENSKE, YOURKOWSKI, MARQUARDT, KRANICH, CUE.

Motion carried.

VISITORS

ANNOUNCEMENTS/PRESENTATIONS/BOROUGH REPORT/COMMISSION REPORTS

Mayor called for a break at 10:33 p.m reconvening the meeting at 10:47 p.m.

PUBLIC HEARINGS.

A. Ordinance 00-06, Of the City Council of Homer, Accepting and Appropriating a Donation of $15,000.00 from Terminal Oil Sales (TOS) Inc. for the Homer Public Library, Homer Volunteer Fire Department, South Peninsula Hospital Physical Therapy Unit and Pratt Museum. City Manager. Finance Director. (Introduction 02/28/00, Public Hearing 03/13/00, Final Reading 03/13/00.)

There was no public testimony.

B. Ordinance 00-07, Of the City Council of Homer, An Ordinance Amending the Business License Requirements of Chapter 8.02 of the Homer City Code. Fenske. (Introduction 2/28/00, Public Hearing 03/13/00, Final Reading 3/27 or 28/00-Contingent upon Council action.)

Robert Keyes voiced objection to the addition of this business license, that it is a duplication of what the Kenai Peninsula Borough does and in his opinion will not serve any purpose. This seems to be a big grab for control and a socialist type of thing. The fee is not going to sink anyone. He stated that he does not like the intrusion of City government, which is doing business itself and authorized to regulate. This is unfair, not right and would be challenged in court.

Trace Carlos advised that he has a new business and is opposed to any more taxation.

Dean Ravin voiced his opposition, stating that this is not necessary and should be set aside rather than getting in the way of businesses in the City.

George Hamm cited this Ordinance as an example of why people do not want annexation. This type of a thing is a hindrance to business, government should down size and not be against the people. He stated that he does not mind paying taxes he just does not want the City running his every day life.

ORDINANCE(S)

A. Ordinance 00-01, Amending the Sign Code, Chapter 21.60 of the Homer City Code to Modify the Restrictions on Freestanding Signs on the Homer Spit and in Certain Portions of the Central Business District. Planning Commission. City Manager. (Introduction 02/14/00, Public Hearing 02/28/00, Final Reading 03/13/00.)

FENSKE/YOURKOWSKI - MOVED FOR THE ADOPTION OF ORDINANCE 00-01` BY READING OF TITLE ONLY FOR SECOND AND FINAL READING.

There was brief discussion that this ordinance has received very little comment and does not restrict freestanding signs on the boardwalks and the existing signs are legal.

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

Motion carried.

B. Ordinance 00-02, Of the City Council of the City of Homer, Alaska, Amending Section 14.04.040, Sewer Rate Schedule, Section 14.08.010, Purpose, Section 14.08.080, Schedule of Rates - Rules and Regulations, Section 14.08.090, Schedule of Rates Outside of the City Limits, 14.08.091, Serviced Deposits, Section 14.08.100, Bulk Water Sales, and Section 14.08.105, Resale of Water. Finance. City Clerk (Introduction 02/14/00, Public Hearing 02/28/00, Final Reading 03/13/00.)

YOURKOWSKI/FENSKE - MOVED FOR THE ADOPTION OF ORDINANCE 00-02 BY READING OF TITLE FOR SECOND AND FINAL READING.

Councilmember Yourkowski advised that the rate increase follows the rate model approved by the Council and is a 4% overall increase.

Council Kranich expressed some concerns regarding the process. In the future the fee resolution will be attached to the budget process for greater public awareness.

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

Motion carried.

C. Ordinance 00-06, Of the City Council of Homer, Accepting and Appropriating a Donation of $15,000.00 from Terminal Oil Sales (TOS) Inc. for the Homer Public Library, Homer Volunteer Fire Department, South Peninsula Hospital Physical Therapy Unit and Pratt Museum. City Manager. Finance Director. (Introduction 02/28/00, Public Hearing 03/13/00, Final Reading 03/13/00.)

YOURKOWSKI/KRANICH/CUE - MOVED TO ADOPT ORDINANCE 00-06 BY READING OF TITLE ONLY FOR FINAL AND SECOND READING.

The Edens family was thanked for their involvement in the community since the 1930s.

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

Motion carried.

D. Ordinance 00-08, Prohibiting the Dumping of Batteries in the Waters of the City, Authorizing a Reward for Information Leading to a Conviction, and Imposing a Penalty. City Manager. City Attorney. (Introduction 3/13/00, Public Hearing 3/28/00, Final Reading 4/10/00.)

FENSKE/CUE - MOVED FOR THE ADOPTION OF ORDINANCE 00-08 BY READING OF TITLE ONLY FOR INTRODUCTION AND FIRST READING.

Council noted that this is to assist in taking care of a problem that should not exist. This dumping is against Federal law and probably against the law of mankind. Desire was expressed for a more comprehensive ordinance, one that covers all hazardous dumping in the harbor.

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

Motion carried.

E. Ordinance 00-09, Of the City Council of Homer, Accepting and Appropriating a Grant of $16,370.00 from the State of Alaska Department of Natural Resources for the Poopdeck Trail Project and Authorizing the City Manager to Execute the Appropriate Documents. City Manager. City Clerk. (Introduction 3/13/00, Public Hearing 3/28/00, Final Reading 3/28/00 contingent upon City Council's action.)

YOURKOWSKI/CUE - MOVE TO ADOPT ORDINANCE 00-09 BY READING OF TITLE ONLY FOR INTRODUCTION AND FIRST READING.

Trails Committee members were recognized: Margret Seelye, Mimi Tolva, Carole Hamik.

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

Motion carried.

CITY MANAGER' S REPORT

A. City Manager's Report. (Ice and Crane Time.)

B. Bid Report, from City Clerk

C. Records Reports, from City Clerk

City Manager Drathman advised that the Soldotna City Council voted to not participate in the Borough's Animal Control program, therefore the program is officially dead. He will not be bringing a proposal before the Homer City Council.

COMMITTEE REPORT

PENDING BUSINESS

NEW BUSINESS

A. Consent Agenda Item D. Resolution 00-30, Of the City Council of Homer, Alaska Authorizing the City Manager to Expend $5,900 for the Environmental Protection Agency, National Pollutant Discharge Elimination System Permit and to Execute the Cooperative Agreement between the City and the Alaska Department of Environmental Conservation. Public Works. City Manager. Unbudgeted expenditure from Acct. 300.5210.500.

Memorandum from Public Works as backup. Recommend adoption.

MARQUARDT/FENSKE - MOVED TOP ADOPT RESOLUTION 00-30 BY READING OF TITLE ONLY.

The need for the NPDES permit was discussed. Public Works Director Meyer elucidated the process, compliance issues and mixing zone aspects. The Public Works Director noted that this is the least expensive way of dealing with the compliance issue.

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

Motion carried.

RESOLUTIONS

A. Resolution 00-34, Of the City Council of the City of Homer, Alaska, Establishing the Sewer and Water Rate Schedule by Resolution Pursuant to Ordinance 00-02. Finance. City Clerk.

MARQUARDT/FENSKE - MOVED FOR THE ADOPTION OF RESOLUTION 00-34 BY READING OF TITLE.

Councilmember Kranich requested a legal opinion regarding the implementation of the new rates prior to adoption of Ordinance 00-02 and Resolution 00-34.

Finance Director Baugh reviewed the process of implementing the rate model each year during the budget process. He noted that most of the City's fees are set by resolution. Ordinance 00-02 provides for the water and sewer rates to be set by resolution and is the reason for Resolution 00-34. He agreed with the Council that there appear to be some inequalities in the rates and as time permits he will be reviewing the rate model.

Mayor Cushing requested that Finance Director Baugh forward any adjustments to the Council for action.

Finance Director Baugh advised that the rate increase implementation time was extended to March 15th to provide for the bulk water haulers/resellers to notify their customers and Kachemak City was also granted an extension.

There was mention about extending the same courtesy of time extension to others.

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

Motion carried.

B. Resolution 00-35, Of the City Council of Homer, Alaska. Authorizing the Annexation Territory to the City of Homer. City Manager. Completed petition has been provided to the Council.

YOURKOWSKI/FENSKE - MOVED TO ADOPT RESOLUTION 00-35 BY READING OF TITLE ONLY.

Council had lengthy discussion on this matter and agreed that it is a tough issue. It was noted that this is the beginning of the process, not the end and can be pulled at any time. Input from the public will be required regarding the aspects of the annexation including zoning matters. Departmental budget cuts of ten percent and revenue enhancements were discussed during the budget process. There was concern about the accuracy of some of the dollar figures in the document and it was noted that these may be adjusted.

Mayor Cushing read Bob Barnett's letter of support of annexation into the record. He reiterated that the Council directed the City Manager to explore this idea.

The public was encouraged to provide input to the Boundary Commission.

FENSKE/KRANICH - MOVED TO SUSPEND THE RULES TO GO PAST MIDNIGHT UNTIL DONE WITH THE MEETING.

VOTE:(suspension of rules) YES: YOURKOWSKI, MARQUARDT, KRANICH, CUE, FENSKE.

Motion carried.

VOTE: YES: MARQUARDT, CUE, FENSKE YOURKOWSKI.

NO: KRANICH

Motion carried.

COMMENTS OF THE AUDIENCE

Gill Mayforth commented on the insurance services about the fire service and ISO ratings based on a five mile radius. ISO is the federal agency that evaluates a fire department's ability to provide emergency services in different situations. One of the first things ISO does is to draw a five mile circle around the fire hall. ISO wants fire stations pretty much five miles apart from each other. He pointed out that the Kachemak City Fire Station is in the wrong location. A satellite station on Dimond Ridge will not be of assistance, because it is in the five mile radius. There are codes and regulations on how these types of community facilities have to be built, which is one reason for the major remodel of the Homer Fire Station. He commented on the water service issues and former Mayor Gregoire's idea of piping water from the head of the Bay. If water were piped from the head of the Bay the City would be able to sell the community residents something beyond the promise of improved service. He asked for the Council to look at an even larger picture than annexation and providing services to the entire community and to keep doing their homework. More than one fire station will have to be built to improve service to the community and all built to codes and regulations. He noted that everyone will have to be very creative above and beyond asking the Boundary Commission. He voiced his interest in how this will pan out.

Pete Roberts thanked the Council for listening to a lot of testimony and for justifying or going through their positions. He expressed his opinion that he still thinks the Council wimped out. He voiced his belief that Benjamin Franklin had it right, that democracy will last until people figure out they can vote themselves benefits from the public treasury. In this case the City wants to benefit from those in the annexation area. There has been no public talk about raising the taxes in the core of the City, where most of the services are and where the taxing should be. He thanked the Council and said that they would be hearing from him later.

Doris Cabana commented about the problem last year on the Comprehensive Plan for the City. She said she tried to say something, did not believe she was heard, because of being an non City resident. She adamantly objected to the top of the hill being industrial. She stated that she is so against annexation because of this industrial issue. She voiced a worry about the plan that says industrial will take precedence over residential. She stated that she wants people to be able to enjoy the view. Right now this area at the top of the hill is a real health hazard.

COMMENTS OF THE CITY ATTORNEY

City Attorney Tans left at 9 p.m.

COMMENTS OF THE CITY CLERK

City Clerk Calhoun had no comment.

COMMENTS OF THE CITY MANAGER

City Manager Drathman had no comment.

COMMENTS OF THE MAYOR

Mayor Cushing emphasized that non City residents had approached this Council for support regarding the borough land use issue at the top of Baycrest. The Homer City Council adopted a Resolution regarding the matter. He noted that the Council listens to what the non City residents have to say. Industrial zones and other zoning and development matters would be addressed with, hopefully, a lot of input from those individuals who live in that area.

COMMENTS OF THE CITY COUNCIL

Councilmember Kranich pointed out that the decision on annexation was not something that any of the Council took lightly. He stated that he would have liked to have voted yes and no. This is not an easy thing. He voiced a hope that during this process the numbers and concepts will continue to be refined and updated information given to the Boundary Commission. He asked for continued input from those in the affected area and for them to assist in coming up with real numbers and real concepts. He noted that on the three or four City Commissions there are non City residents serving as full voting members, as established in code.

Councilmember Cue had no comment.

Councilmember Yourkowski encouraged everyone to participate in the process and not to mistrust the public process that will be put into place. The Boundary Commission is experienced with these issues and will have some valuable input into what happens. Everyone has a chance to affect the outcome.

Councilmember Marquardt echoed Councilmember Yourkowski's comments and hoped that everybody continues to participate in this process and believes that it has a lot of potential.

Councilmember Fenske had no comment.

ADJOURNMENT

There being no further business to come before the Council the meeting was adjourned at 12:47 p.m. The next regular meeting is scheduled for March 28, 2000 at 7:30 p.m. in the Homer City Hall Council Chambers.

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MARY L. CALHOUN, CMC, CITY CLERK