Session 05-08, a Regular Meeting of the Homer City Council was called to order at 7:00 p.m. by

Mayor James C. Hornaday at the Homer City Hall Council Chambers located at 491 E Pioneer Avenue, Homer, Alaska, and opened with the Pledge of Allegiance.

PRESENT: COUNCILMEMBERS: BECK, McLAY, NOVAK, STARK, WYTHE, YOURKOWSKI.

STAFF: CITY CLERK CALHOUN

CITY MANAGER WREDE

LIBRARY DIRECTOR HILL

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

Council met as a Committee of the Whole from 4:00 p.m. to 5:29.5 p.m., which included a joint session with the Council's advisory bodies on the Land Allocation Plan, discussed the Regular Agenda Items and had a discussion of Zoning - Foliage- Natural Growth on Lots in the City. This meeting was held in the Homer City Hall Council Chambers.

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 with the following changes:

Substitutions on the Consent Agenda: (Copies of the Substitutions and City Attorney's requested Amendment to Resolution 05-32 were available for the public on the public information table at the back of the Council Chambers.)

Resolution 05-27(S), Of the City Council Amending the City of Homer Fee Schedule - Zoning Permit and Conditional Use Permit Fees for Activities that have Commenced without a Permit and Adding a Fee for Street Renaming. City Clerk.

Memorandum 05-42(S), from City Planner, as backup.

Resolution 05-30(S), Of the Homer City Council that May 14, 2005 be Homer Community Park Day. City Manager. Parks and Recreation Commission..

Memorandum 05-43(S), from Parks and Recreation Commission as backup.

Resolution 05-31(S), Of the City of Homer, Alaska, Authorizing and Providing for the Incurrence of Indebtedness in the Principal Amount of $1,700,000 for the Purpose Providing a Portion of the Cost of Acquiring and Constructing a Public Library, Providing for the Collection, Handling, and Disposition of Revenues Therefrom, and Authorizing Makings of Promissory Notes, Security Instruments, and Pledges of Revenues to Evidence and Secure the Payment of said Indebtedness and for Related Purposes. City Manager. City Attorney.

The City Attorney's request for amendment of Resolution 05-32 to inserted the words "and future" into the Be it Further Resolved clause on page two, third line was recognized and executed: This clause now reads: "BE IT FURTHER RESOLVED, because allegations have been made that the City Council's prior actions were inadequate to constitute such approvals and authorizations, the City Council hereby again approves, authorizes, and ratifies all previous and future actions of the City Manager and his agents, including the director of public works, in connection with the filing of the eminent domain action for taking easements in connection with the Hillside Acres Water and Sewer Local Improvement District sewer and water utility project, including but not limited to the approval of the Decisional Document (including the supplement), the filing of the eminent domain lawsuit, and the use of declaration of taking; and

Councilmember Wythe asked that Ordinance 05-14 be pulled and asked that it be placed it on the Committee of the Whole agenda for April 11, 2005. There were no objections.

Councilmember Novak asked that Resolution 05-28 be pulled from the Consent Agenda and placed under Resolutions. There were no objections.

Councilmember Yourkowski requested that Resolution 05-32 be pulled from the Consent Agenda and placed under Resolutions, believing that he has a conflict of interest.

PUBLIC COMMENTS UPON MATTERS ALREADY ON THE AGENDA

Public comments upon matters on the agenda with the exception of: Visitor - Alan Parks with an AMCC, Alaska Marine Conservation Council, Update and Public Hearing items: Ordinance 05-08, Amending the Fee Schedule to Delete Certain Library Fees; , and Amending the 2005 Budget, Ordinance 05-10, Amending Ordinance 05-03(A);Ordinance 05-11, Homer Land Bank;Ordinance 05-12, Amending store size in the GC1 and GC2 districts; andOrdinance 05-13,Antenna Replacement for Public Safety.

John Velsko, City resident, commented on New Business Item A. Memorandum 05-48, Senior Property Tax Exemption and voiced his hope that the City Council will direct the City Manager to draft a Resolution to the State Legislature requesting reimbursement for these state mandated tax exemptions for Disabled and Senior citizens. Right now the state has a pretty big surplus, because the price of oil is $54 per barrel. He commented on talking to the Council about this before in years past, that this state mandate is actually coming out of City tax dollars. He stated that he does not know if the Finance Director has a figure on it, but imagines that this is getting to be a pretty substantial money and that the City may even be able to get some of the back money. Right now Homer is getting a lot of people moving in from outside the state and coming here due to the Senior Tax Exemption and that they are tax free on the first $150,000.00 on property and there also is no state income tax. So, this looks pretty good to the Senior Citizen, but, unfortunately, the younger working families of the area are having to pay that cost; therefore, it is only fair that the state reimburse the City. He voiced his hope that the City pursues this in an aggressive manner. He thanked the Council.

Frank Griswold, City resident, commented on Ordinance 05-14 even though it was pulled, since it was on the agenda, and donated a dollar to start the windfall fund. He suggested that parts of the Ordinance are pretty confusing like the twelve month delay, like year 'a' to year 'c' and that, in some circumstances, the funds might be needed immediately. He stated that he has a problem with the line about - under no circumstances shall the principle of the fund be distributed without the approving vote of a preponderance of 67% of the voting electorate. He voiced his opinion that 'distributed' sounds like 'appropriation', which would not be legal, and that 'preponderance' is the wrong word and that 67% of the voting electorate is more than an overwhelming majority. He suggested that this needs a legal opinion before the Council goes anywhere with this. He spoke on Resolution 05-27 item F, if suggested that the intent may be okay, but believes there to be some math errors that make it really bad - the 1.5% should be 150% and the 2% should be 200%, that as it is if one makes an after the fact fee of 1.5% that is $2.70 and is not a disincentive. He voiced his opinion that it is a mistake where it says instead of being fined or other wise sanctioned an applicant may simply apply for a permit by paying an increased fee, adding that he does not think the other fees should be waived and that discretion may be used to not apply them. If someone puts up a building and does not get a permit for a year they are really liable for $109,000.00 for $300 a day for that fence and if they can get off for $270 or $2.70, that is a scream of a deal. This might be in conflict with HCC 21.30.060, which says that any permit issued in violation of Homer Zoning Ordinance is void. He told the Council that he is not in favor of naming any City buildings or parts of buildings or microphones or any thing else after people. He pointed out that in the Council manual it says that the public is allowed five minutes per issue and that it starts off...

Mr. Griswold's comment time had expired.

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 Wythe requested that Resolution 05-26 be placed under Resolutions as Item C.

Councilmember Yourkowski requested that Memorandum 05-46 be placed under New Business as Item B.

A. Homer City Council unapproved meeting minutes of February 28, 2005 Special and Regular Meetings. City Clerk. Recommend approval.

B. Ordinance 05-14, Of the City Council of the City of Homer, Alaska Amending Homer City Code Chapter 3.05, Budget to Add a New Section 3.05.042, General Permanent Fund. Wythe. Recommend introduction, conduct Public Hearing March 29, 2005 and Second Reading April 11, 2005.

Removed, will be on the Committee of the Whole Agenda for April 11, 2005.

C. Ordinance 05-15, Of the City Council Authorizing the Transfer of Funds from the 2004 Budget to the 2005 Budget in the Amount of $32,209.00 for Purchase Order 537, Badger Water Meters. City Manager. Finance. Fiscal Note: Revenue Water Reserves $32,209.00 and Expense Acct. For Purchase Order 537 $32,209.00 215-378-5202 Badger Water Meters Recommend introduction, conduct Public Hearing and Second Reading on March 29, 2005.

Memorandum 05-40, from Finance Director as explanation.

D. Resolution 05-25, Of the City Council of Homer, Alaska Awarding A Professional Services Contract to William J. Nelson and Associates in the amount of $276,720.00 for Water and Sewer Projects Inspection Services and Authorizing the City Manager to Execute the Appropriate Documents. City Clerk. Fiscal Note: Fiscal Note: Budgeted: 215-816 Hillside Acres Water and Sewer Assessment/Improvement Districts for $75,580.00;215-826 Kachemak Drive Phase I Sewer Assessment/Improvement District for $59,260; 215-827 Ocean Drive Loop Sewer Assessment/Improvement District for $59,260; and 215-815 ADOT Bartlett Water Main Replacement for $82,620. Recommend adoption.

Memorandum 05-36, from Public Works as backup.

E. Resolution 05-26, Of the City Council Directing the Planning Commission and Planning Department to Thoroughly Assess HCC 21.61.105(f) Community and Economic Impact and HCC 21.61.105(l) Standards, in their Large Retail and Wholesale Development Approval and Permitting Process. Novak. Beck. Recommend adoption.

Memorandum 05-41 from Novak as and with backup.

Placed under Resolutions as item C.

F.(Substitute added under Agenda Approval) Resolution 05-27(S), Of the City Council Amending the City of Homer Fee Schedule - Zoning Permit and Conditional Use Permit Fees for Activities that have Commenced without a Permit and Adding a Fee for Street Renaming. City Clerk. Fiscal Note: Revenues, not defined. Recommend adoption

Memorandum 05-42(S), from City Planner, as backup.

G. Resolution 05-28, Of the Homer City Council Urging the Kenai Peninsula Borough Assembly to Amend Borough Ordinance 2005-05 Regarding the Proposed Transient Accommodations Tax to Provide for an Equitable Distribution and Sharing of the Tax Revenues with Cities with the Borough. Wythe. Yourkowski. City Manager. Recommend adoption.

Placed under Resolutions as Item A.

H. Resolution 05-29, Of the Homer City Council Naming the City Hall Council Chambers after Homer's First Mayor, Ralph Gano Cowles. Mayor. Recommend adoption.

I.(Substitute added under Agenda Approval.) Resolution 05-30(S), Of the Homer City Council that May 14, 2005 be Homer Community Park Day. City Manager. Parks and Recreation Commission. Recommend adoption.

Memorandum 05-43(S), from Parks and Recreation Commission as backup.

J.(Substitute added under Agenda Approval.) Resolution 05-31(S), Of the City of Homer, Alaska, Authorizing and Providing for the Incurrence of Indebtedness in the Principal Amount of $1,700,000 for the Purpose Providing a Portion of the Cost of Acquiring and Constructing a Public Library, Providing for the Collection, Handling, and Disposition of Revenues Therefrom, and Authorizing Makings of Promissory Notes, Security Instruments, and Pledges of Revenues to Evidence and Secure the Payment of said Indebtedness and for Related Purposes. City Manager. City Attorney. Recommend adoption.

K. Resolution 05-32, Of the City Council, of Homer, Alaska Clarifying and Reauthorizing Eminent Domain Proceedings, and Confirming the City's Intent to Authorize use of a Declaration of Taking for Hillside Acres Water and Sewer District Easements. City Manager. City Attorney. Recommend adoption.

Placed under Resolutions as Item B. with amendment as noted under Agenda Approval.

L. Memorandum 05-44, from City Clerk, Re: Rescheduled Council Second Regular Meeting of March to Tuesday, March 29, 2005, pursuant to Council's Meeting Schedule as set by Resolution 04-103. Recommend confirmation.

M. Memorandum 05-45, from Deputy City Clerk, Re: Appointment of Election Workers for the March 22, 2005 Special Election. Recommend Confirmation.

N. Memorandum 05-46, from Stark, Re: Library Voluntary Fees. Recommend approval.

Placed under New Business as Item B.

O. Memorandum 05-47, from City Clerk, Re: Vacation of Raspberry Court, a 50 foot right-of-way, dedicated by Bayview Gardens Subdivision Addition No. 1 (Plat HM 76-104), and Fireweed Terrace (Pate HM 2001-18) within Section 17, Township 6 South, Range 13 West, Seward Meridian, Alaska. Recommendation voice non veto.

McLAY/WYTHE - MOVED FOR THE ADOPTION AND/OR APPROVAL OF THE RECOMMENDATIONS OF THE CONSENT AGENDA INCLUDING THE REMOVAL OF CERTAIN ITEMS AS READ.

There was no discussion.

VOTE: (Excluding items B., E., G., K., and N.) YES: NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

VISITORS

A. AMCC, Alaska Marine Conservation Council, Alan Parks, Update.

Mr. Parks, works for AMCC - outreach coordinator, reported on the AMCC, handed out a brochure on AMCC and paperwork on Frequently Asked Questions about Offshore Aquaculture. He advised that Abbie Turner, a High School Student in Homer, holds the Youth Seat and was unable to be present tonight. He made a power point presentation about different types of rock fish in Cook Inlet, life cycles, reproduction and harvest trends. When one of these fish is caught there is no catch and release since most of these are caught from below 60 feet and when brought to the surface, die. The general statement with regard to these fish is that a caught fish is a dead fish. These fish live long periods of time, the older female fish produce more and better offspring. Rock fish are vulnerable to over fishing and depletion. Many of these fish live over 100 years. Rock fish are fished and are bycatch fish.

ANNOUNCEMENTS/PRESENTATIONS/BOROUGH REPORT/COMMISSION REPORTS

There are no reports scheduled.

PUBLIC HEARING(S)

A. Ordinance 05-08, Of the City Council Amending the City of Homer Fee Schedule to Delete Certain Library Fees and Amending the 2005 Budget, Revenues Accordingly. Beck. Fiscal Note: Reduction of $40,000 in Depreciation and Library Revenue. (First Reading postponed on February, 14, 2005 for further financial consideration, February 28, 2005, Public Hearing and Second Reading on March 14, 2005.)

Sue Mauger, City resident and Chair of the Library Advisory Board, confirmed that the Library Advisory Board supports this Ordinance, the elimination of the card and internet use fees.

BECK/YOURKOWSKI - MOVED FOR THE ADOPTION OF ORDINANCE 05-08 BY READING OF TITLE.

Councilmember Wythe stated for the record, "I want to go on record as objecting to taking the money from the Depreciation Fund for Funding this Item."

It was clarified that the amendments made at the February 28th meeting, failed.

VOTE: YES: NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

B. Ordinance 05-10, Of the City Council of Homer, Alaska Amending Ordinance 05-03(A), Repealing Section 3. Dedicated Sales Tax, Community Enhancement Fund. City Clerk. (First Reading February 28, 2005; Public Hearing and Second Reading March 14, 2005.) Page 177

There was no Public testimony.

McLAY/WYTHE - MOVED FOR THE ADOPTION OF ORDINANCE 05-10 BY READING OF TITLE FOR SECOND AND FINAL READING.

There was no discussion.

VOTE: YES: NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

C. Ordinance 05-11, Of the City Council of Homer, Alaska Amending Homer City Code Title 18 to Enact a New Chapter 18.04, Homer Land Bank Established and Amending Homer City Code Chapter 3.05 to Add a New Section 3.05.042, Land Bank Fund. Wythe. (First Reading February 28, 2005, Public Hearing March 14, 2005,Second Reading March 29, 2005.)

Nancy Lord, resident of the City, testified as to her involvement in the previous effort to establish a land bank, which, according to Ms. Lord, kind of stalled out with a previous Council. She voiced appreciation of Councilmember Wythe's attention to the City finances, budget and depreciation, one of those things most people don't think about, but is very important for the financial situation of the City. She expressed concerns about the Ordinance, that this is really not a Land Bank concept and the concept that the City had before, based on the Anchorage one, was really a way to prevent City properties from disappearing, from being eroding so was really a way of banking properties and money that would be used to purchase additional properties to keep properties in public hands. She acknowledged having an understanding of the intent of this Ordinance, to put up for sale properties that the City owns that it acquired through foreclosures. She commented on attending the Committee of the Whole meeting wherein this was discussed and that she thinks that there is a good process for dealing with these things and that it is not clear to her that very many properties come to the City through foreclosure. She voiced a desire to have more information on how many properties do come this way and that, from what she heard this afternoon, she voiced her belief that the properties that do come to the City that way usually have real problems, no access, don't exist due to complete erosion by the ocean or something like that so are of no value. She commented that the Ordinance, as designed now, has allocations for money going into particular different pots and voiced her objection to this since it puts pressure on, for example, the Pratt Museum, as one of the monetary recipients, to want property to be sold so that it could have some operating money. This is not a good thing to do. She told the Council that what she is trying to say is that she thinks the Council has a good process already, wherein Council looks at properties every year and decides what to do with these which provides flexibility. This Ordinance locks the Council into something they may not want, since it removes the flexibility of doing things on a case by case basis.

D. Ordinance 05-12, Of the City Council of Homer, Alaska Amending Homer City Code Sections 21.49.040(e)(1) to read 35,000 Square Feet and 21.49.040(e)(3) to read 25,000 Square Feet, and 21.50.040(e)(1) to read 45,000 Square Feet. Novak. Yourkowski. (First Reading February 28, 2005 and forwarded to Planning Commission for review, Public Hearing and Second Reading March 14, 2005.)

Memorandum 05-49 from City Planner.

Nancy Lord voiced her surprise that there are not others present to testify. She encouraged the Council to proceed with this, that it is a nice fine tuning of the square footages and allows for the large square footage to be in areas that are most appropriate. She stated that it seems appropriate for the smaller square footages to be in areas such as the Gateway Area, coming over Baycrest Hill, and so on and seems appropriate and more in line with what people have testified to in the past and so on. She encouraged the Council to pass this and thanked them.

NOVAK/BECK - MADE A MOTION TO POSTPONE THE SECOND READING OF THIS ORDINANCE TO MARCH 29, 2005 SO THAT THE PLANNING COMMISSION CAN MAKE THEIR RECOMMENDATION BASED ON A PUBLIC HEARING THAT THEY WILL BE HOLDING WEDNESDAY THE SIXTEENTH.

There was no discussion.

VOTE: YES: NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

E. Ordinance 05-13, Of the City Council of Homer, Alaska Authorizing the Expenditure of $12,352.06 for Antenna Replacement for Public Safety, and Authorizing the City Manager to Execute the Appropriate Documents. City Manager. Fiscal Note: Funding Accounts for Antennae and Equipment $4,780.63 - 151-394-5215 HPD $2,390.32, 151-393-5215 HVFD $2,390.31; Funding Accounts for Labor and Installation $7,571.43 - 151-394-5215 HPD $3,785.71, 151-393-5215 HVFD $3,785.72 (First Reading February 28, 2005; Public Hearing and Second Reading March 14, 2005.)

There was no public testimony.

BECK/NOVAK - MOVED FOR THE ADOPTION OF ORDINANCE 05-13 BY READING OF TITLE.

There was no discussion.

VOTE: YES: NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

ORDINANCE(S)

A Ordinance 05-04, Of the Homer City Council, Amending Homer City Code Section 21.70.010, Initiation of Zoning Ordinance Amendments. City Clerk. (First Reading January 24, 2005, Public Hearing February 28, 2005,Second Reading March 14, 2005.)

Memorandum 05-39 City Planner.

NOVAK/YOURKOWSKI - MOVED THAT WE, BASED UPON THE RECOMMENDATION OF THE PLANNING COMMISSION, TABLE THIS ORDINANCE.

There was no discussion.

VOTE: YES: NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

B. Ordinance 05-06, Of the Homer City Council Amending Homer City Code Section 17.04.030, Improvement Districts--Formation and Assessment and Section 17.04.050, Improvement Plan--Objections and Revisions. City Council. (First Reading January 24, 2005, Public Hearing February 28, 2005, Second Reading March 14, 2005.)

B.1. Ordinance 05-06(S), Of the Homer City Council Amending the Homer City Code Section 17.04.010, Definitions, Costs; Section 17.04.030, Improvement Districts-Formation and Assessment; Section 17.04.050, Improvement Plan--Objections and Revisions and Adding an Application Fee. City Clerk. (Provided for public hearing on February 28, 2005, Council Consideration on March 14, 2005 as an amendment)

WYTHE/BECK - MOVED TO ACCEPTANCE OF ORDINANCE 05-06 FOR SECOND AND FINAL READING.

There was no discussion.

BECK/NOVAK - MOVED FOR THE ADOPTION OF ORDINANCE 05-06(S) BY READING OF TITLE.

There was no discussion.

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

Motion carried.

There was no discussion.

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

Motion carried.

C. Ordinance 05-07, Of the City Council Amending the Homer City Zoning Map, HCC 21.36, Rezoning from Central Business District and Marine Industrial District to Conservation District, those Properties Acquired through the Action of the EXXON VALDEZ Oil Spill Trustee Council, The City of Homer, the Trust for Public Land, and the State of Alaska. City Manager. (First Reading February 14, 2005, Public Hearing February 28, 2005,Second Reading March 14, 2005.)

YOURKOWSKI/NOVAK - MOVED FOR THE ADOPTION OF ORDINANCE 05-07 BY READING OF TITLE.

There was no discussion.

VOTE: YES: NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

CITY MANAGER'S REPORT

A. City Manager's Report(Updates and follow up: Spit leases, Community Schools, Hospital Lease; March Employee Anniversaries - Barb Garcia PWD 15 years, Steve Bambakidis 5 years Systems Manager, Matt Clarke P/H 4 years, Mitch Hrachiar PWD 4 years and Gary Richardson Custodian 1 year ; Letter from School District regarding Community Schools; GFOA Annual Financial Report; Parks and Recreation Commission Re: Trail Easements; Senator Murkowski Re: Library and Chief Robl resignation from Beach Policy Committee.)

B. Bid Report. (1. Invitation to Bid Dredge Spoils Sealed bids are due in the Office of the City Clerk by 2 p.m on Thursday, March 17, 2005. 2. Request for Proposals Incorporation of Art into the New Homer Animal Shelter. Sealed proposals are due in the Office of the City Clerk by 4:30 p.m Thursday, March 24, 2005. Proposers must be listed on the Plan Holder's List to be eligible to propose. 3. Invitation to Bid, Homer Public Library Sealed Bids for construction of a new Homer Public Library will be received by the Office of the City Clerk, 491 E. Pioneer Avenue, Homer, Alaska 99603 until 2:00 p.m., April 21, 2005 at which time they will be publicly opened. Bids received after the time fixed for receipt of the Bid shall not be considered. Bid documents will be available starting March 21, 2005. $125 if picked up at Clerk's office; $155 for overnight delivery. All fees are non-refundable.

There were no comments.

COMMITTEE REPORT

A. Town Center Development Committee. Meetings scheduled for Thursday, March 17, 2005 at 5 p.m. City Hall Conference Room and Thursday, March 24, 2005 at 5:30 p.m. City Hall Council Chambers.

B. Road Standards Committee, No meeting held and no meeting scheduled.

C. Beach Policy Committee. Meeting, Wednesday, March 9, 2005.

D. Public Arts Committee, Meeting scheduled for Friday, March 18, 2005 at 11 a.m.

E. Conference Center Feasibility Study Steering Committee, Meeting held on February 8, 2005 at 4 p.m. at the Homer Chamber of Commerce Building.

There were no comments.

PENDING BUSINESS

A. Council final selection of Appointment to the Council. (Applicants are in order of filing: Mike Heimbuch, John Velsko, G. William (Bill) Smith, Barbara G. Howard, Doris Cabana and Ron Jimerson.) Postponed on February 28, 2005 to March 14, 2005.

Mayor Hornaday clarified that he was joking when he said that the Council may have to be hauled out of here in handcuffs, adding that he has no idea what happens if Council does not pass this.

Councilmember Beck asked the City Manager to make a point of clarification about why she is not voting.

City Manager Wrede advised the Council that it has come to his attention that there has been a lot of pressure on Councilwomen Beck to explain why she is not voting. He clarified that there was an opinion from the City Attorney, passed out two meetings ago, in the form of an email to he and the City Clerk, which said basically that Councilwoman Beck could not vote and it outlined the reasons for that. Therefore, she has been operating with the understanding that she could not vote all along, that it is not that she does not want to vote, and that she probably does want to vote. He stated that the feeling of the City Attorney is that she is prevented from voting under both the Homer City Code and State Statutes. He reported that he and the City Attorney did have a conversation today about what would happen if the Council is not able to come to a decision to select somebody. It is true that the State Statutes say that the Council "shall" appoint a replacement to fill a vacant seat from five remaining members, that there is no requirement to have a special election. If the Council can't decide then there would be less than a full Council until the next election. He noted that there is a lot of case law out there about what happens if a Special Election is held in cases like this, that it is not clear and rulings have been both ways - that Council were in error and not in error.

Councilmember Beck was excused from the table.

Councilmember Stark moved to have a paper ballot.

Mayor Hornaday advised that four votes are not required on the secret ballot, only on the motion to appoint someone.

There was no second. There appeared to be a concurrence of the Council, there being no objections.

Secret ballots are provided by City Clerk at each Councilmember's seat.

Two sets of secret ballots were cast with identical results:1 - Mike Heimbuch, 0 - John Velsko, 2 - G. William (Bill) Smith, 2 - Barbara G. Howard, 0 - Doris Cabana and 0 - Ron Jimerson

Council expressed no desire to continue on this matter.

Councilmember Beck returned to the table.

NEW BUSINESS

A. Memorandum 05-48, from City Manager/City Clerk, Re: Senior Property Tax/Disabled Veterans Tax Exemption. Request by Councilmember Wythe.

RECOMMENDATION: Council decide a direction regarding the exemption issues for submission of a Resolution for the March 29, 2005 Regular Council Meeting.

WYTHE/McLAY - MOVED FOR ACCEPTANCE OF MEMORANDUM 05-48.

Councilmember Wythe gave a brief summation of the Memo.

VOTE: NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

WYTHE/NOVAK - MOVED TO RECONSIDER THE APPROVAL.

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

Motion carried.

Main motion is back on the floor. WYTHE/McLAY - MOVED FOR ACCEPTANCE OF MEMORANDUM 05-48.

Councilmember Wythe expressed her desire for the tax exemption to continue to protect those with fixed incomes so that they not lose their primary residence for inability to pay their property taxes.

WYTHE/BECK - MOVED TO AMEND: "To Direct the Manager to prepare a Resolution that supports the continuation of Senior Tax Exemption, but urges the Legislature to reimburse the Cities as they are required to do by law and includes the Veterans."

There was no discussion.

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

Motion carried.

There was no discussion.

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

Motion carried.

B. Consent agenda item N. Memorandum 05-46, from Stark, Re: Library Voluntary Fees. Recommend approval.

STARK/McLAY - MOVED THE RECOMMENDATION OF MEMORANDUM 05-46 BY READING OF TITLE.

There was no discussion.

STARK/McLAY - MOVED TO AMEND TO CHANGE THE WORD "FEE" TO "DONATION".

There were several comments, pro and con and about donation track records. It was noted that Council makes policy. There were comments pro and con on the donations going to the General Fund or to the Friends of the Library, as is the current practice.

At one point in the discussion a point of order was called for by Councilmember McLay since the discussion had veered from the subject of the motion.

Mayor Hornaday acknowledged the point of order as legitimate.

Discussion ensued on the motion.

VOTE:(primary amendment) YES: YOURKOWSKI, STARK, NOVAK, BECK, McLAY, WYTHE.

Motion carried.

Councilmember Wythe asked for the donations to be tracked whether the funds to go the City or to the Friends of the Library.

Mayor Hornaday inquired if this is being made as a friendly amendment.

Councilmembers Stark and McLay accepted this as a friendly amendment.

Councilmember Wythe withdrew this as a friendly amendment.

Councilmember Stark voiced his opinion that the money will be tracked because it will be going through the Finance Department.

VOTE:(main amended motion) YES: STARK, McLAY.

NO: NOVAK, BECK, WYTHE, YOURKOWSKI.

Motion failed.

RESOLUTIONS

A. Consent Agenda item G. Resolution 05-28, Of the Homer City Council Urging the Kenai Peninsula Borough Assembly to Amend Borough Ordinance 2005-05 Regarding the Proposed Transient Accommodations Tax to Provide for an Equitable Distribution and Sharing of the Tax Revenues with Cities with the Borough. Wythe. Yourkowski. City Manager. Recommend adoption.

BECK/YOURKOWSKI - MOVED FOR THE APPROVAL OF RESOLUTION 05-28 BY READING OF TITLE.

There was no discussion.

NOVAK/YOURKOWSKI - MOVED TO AMEND THE NOW THEREFORE BE IT RESOLVED CLAUSE TO INSERT AFTER HAVE, "THE FULL AMOUNT DEDUCTED" FROM THE BOROUGH TAX.

The clause would read: NOW THEREFORE BE IT RESOLVED, that Homer City Council hereby recommends that the Borough Assembly amend ordinance 2005-05 to allow municipalities to levy their own accommodations tax and have the full amount deducted [it deducted ]from the Borough tax, and

Councilmember Novak noted that this is money that Homer wants to keep in Homer and that it not be sent to the Borough. The intent is to make it clear to the Borough that the City is not interested in a percentage of some bed tax number and that Homer wants to pass something it has agreed upon, which could be the full amount of the Borough tax.

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

Motion carried.

There was no further discussion.

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

Motion carried.

B. Consent Agenda Item K. Resolution 05-32, Of the City Council, of Homer, Alaska Clarifying and Reauthorizing Eminent Domain Proceedings, and Confirming the City's Intent to Authorize use of a Declaration of Taking for Hillside Acres Water and Sewer District Easements. City Manager. City Attorney. Recommend adoption.

Councilmember Yourkowski declared a Conflict of Interest in that he owns property in that district and that he does not feel comfortable participating in or voting on an eminent domain.

Mayor Hornaday voiced recognition of this conflict of interest, unless the Council wished to over rule him.

Council did not object to the Mayor's ruling.

Councilmember Yourkowski was excused from the table.

NOVAK/WYTHE - MOVED TO APPROVE RESOLUTION 05-32, WITH THE NOTATION THAT THE CITY ATTORNEY'S REQUESTED AMENDMENT, AS NOTED UNDER AGENDA APPROVAL, IS INCLUDED IN THIS RESOLUTION.

City Manager Wrede noted that his is house cleaning Resolution, the Council has already taken action on this matter and that this Resolution was requested by the City Attorney to make absolutely clear Council's intention.

There was no discussion.

VOTE: YES: NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

Councilmember Yourkowski returned to the table.

C. Consent Agenda Item E. Resolution 05-26, Of the City Council Directing the Planning Commission and Planning Department to Thoroughly Assess HCC 21.61.105(f) Community and Economic Impact and HCC 21.61.105(l) Standards, in their Large Retail and Wholesale Development Approval and Permitting Process.Novak. Beck. Recommend adoption.

Memorandum 05-41 from Novak as and with backup.

NOVAK/YOURKOWSKI - MOVED TO APPROVE RESOLUTION 05-26.

Discussion points:

• •The intent of this Resolution is to highlight certain points of the existing code, already in place with regards to standards applicable to Conditional Use Permit applications and two phases - traffic and community economic impact analysis.

• •What is really desired is to educate and to provide an opportunity to emphasize community and economic impact analysis.

• •That economics of the community are important.

• •This process will help ensure the quality of the projects and enhance the character and economic health of the community.

• •The Andersonville Study on retail economics is just for informative purposes. It has clear policy implications regarding local merchants, consumer spending and how to balance larger incoming businesses with the smaller ones to make a successful community. It supports some concepts with regards to local businesses and incoming larger corporations and has independently promoted recent analysis of the American Retail scene.

• •Economic development is something that everyone is interested in and that it needs to be done in a way that enhances the community.

• •Desire was expressed that these ideas be laid out in front of the Planning Commission and the Council to consider as moving through the process of developing the community.

• •There was an uncertainty expressed that the devices currently in place by Planning and Zoning are not working well, adding that Planning and Zoning puts people through some fairly rigorous paces to come in and develop the community.

• •Again there is the perception of blocking growth, whether intended or not.

• •It is interesting that the Council would direct the Planning Commission to do what they are supposed to do, which is to enforce the existing codes.

• •There is a substantial system in place right now.

• •There is no intent to block or change any process.

• •Retail economics is not something that "we" have a strong handle on and that there is information out that like this Andersonville Study, that merely highlights some points between the balance of large businesses and small. Not to negate one or the other, but how these can work together to make a stronger community. The point is to take information like this, put it out there, to consider it while moving along, not to change what exists, but to enhance what exists.

• •This Resolution highlights the importance of these matters and that there be an emphasis on a balanced economy here in the community.

• •There was an assumption that this Resolution was to counteract what the Planning Commission did with the enforcement of the Sign Ordinance, wherein the Planning Commission directed administration to not enforce the Ordinance. The Commission does not have the legal ability to do that and nor does the Council. All this Resolution is doing is telling the Planning Commission to do what the Code tells them to do.

VOTE: YES: NOVAK, BECK, WYTHE, YOURKOWSKI.

NO: STARK, McLAY.

Motion carried.

COMMENTS OF THE AUDIENCE

Audience comments upon any matter.

Carole Hamik addressed the Council regarding Ordinance 05-12 and was advised that this was postponed to the next meeting. She urged the Council to pass this Ordinance and voiced appreciation of Councilmembers Novak and Yourkowski for bringing this Ordinance to the Council. She stated that the Scenic Gateway and these other areas should be protected from the big, huge box store size. In representation of the Trails Committee she relayed concerns with regard to the Land Allocation Plan about a piece of property near Heath Street where the new Library is located. She advised the Council that for many years the Trails Committee and the Parks and Recreation Commission have wanted to see that property be part of an interconnecting trails plan, which they worked pretty long and hard on and in implementation process, also. She noted that this would be a connector for the Poopdeck Trail and go on up to the Museum and Karen Hornaday Hillside Park. This could be used for parking or a green space. Selling it would mean that it would be gone forever for that potential. She noted that they would like to see much pocket park green space to enhance this beautiful little community. She voiced appreciation to the Council for listening and thanked them.

Nancy Lord thanked the Council for putting to rest the Library Fees issue, which she felt were based on some misunderstandings about both the Mission of the Library and about what was really possible under the laws the Library operates and that this now "frees up" to work more positively for/on the new Library and on what the existing Library does and so on. She thanked the Mayor and City Manager for putting together information about the special election coming up, that this is real important that this is accessible to people. She voiced appreciation of the handouts and so on that are available here tonight. She also commented that she realizes that the special election comes during spring break, when she is going to be gone, that lots of people are going to be gone. She encouraged people to remember to vote before they leave town. She thanked the Council, adding that it was a good meeting tonight.

Sue Mauger stated that she hoped to not feel the need to come to the Council's next meeting and wanted to say thank you to Councilmember Beck. She stated that three years ago she read a 2002 Point of View piece that Ms. Beck did that said that Homer should be a community that listens. She reported that she happened upon this in her pile of things that inspire her. She noted that in this article Ms. Beck gave a challenge for people to be willing to be turned around by conversation, to listen to each other with minds and hearts. Ms. Beck wrote that this commitment is not for sissies and is a challenge for daring and courageous individuals who are willing to embark on a lifelong adventure of living on a higher plane of consciousness. She thanked Councilmember Beck for doing more than just writing about this, for actually leading along the way, that she has brought a lot of class and respect to the Council. She voiced hope that the Council will be able to replace Ms. Beck with someone of equal caliber, adding that Ms. Beck is a hard act to follow. She thanked Ms. Beck for her time and service to the community, that she will be missed on Monday nights. She thanked the Council.

Alan Parks thanked Council for the opportunity to talk again and thanked Councilmember Beck for her service, intellect, courtesy, and overall soul of a beautiful human being. He voiced much appreciation for her being in this community and hoped for her the utmost best in the adventures ahead of her in her life. He thanked her very much.

Leonard Wells commented on the $40,000 ⁽¹⁾ and that a City resident's opinion of where that came from was that it was needed to put in there last November and December in order for the Council to have the money to pass the budget. He stated that the Council put this money in knowing that they really weren't going to do it and did not want to cut money from other places. He recommended that people do get out and vote in the special election either absentee or in person and that they realize that the increase in sales tax is permanent once the public gives it unless the Council wishes to reduce it, which, he assumed, would need to be voted on. Council has indicated that the reduction in property tax mil levy would be only for the year 2005. Mr. Wells stated that as a property owner he anticipates that Council would increase it for the 2006 budget year, right back up, even if the one percent sales tax passes. He thanked the Council.

COMMENTS OF THE CITY ATTORNEY

City Attorney Tans was not present.

COMMENTS OF THE CITY CLERK

City Clerk Calhoun had no comment.

COMMENTS OF THE CITY MANAGER

City Manager Wrede clarified come comments that were heard from Mr. Wells:

That the Council can reduce the sales tax if it chooses to without a vote, a vote of the people is required to raise the sales tax if its above its' authorization.

The Ordinance states very clearly that the property tax begins in 2005 and does not automatically go up next year. The Council would have to take action to raise the mill rate. The property tax would be lowered by one mill until Council takes that action.

COMMENTS OF THE MAYOR

Mayor Hornaday commented that he passed out a draft of some minutes from the NERRS, that he sits on the NERR Board, that he is interested in the comments of Mr. Baird that the overall average rate of bluff erosion for the City of Homer is 2.3 feet per year, with a prediction, at these rates, that fifty years out that the West Hill Intersection, Overlook Park and including private property would be eroded. He voiced his assumption and hope that this has been sent to the Planning Commission. He also encouraged the Council to attend the AML Fly-In, April 19 through 21. He elucidated the importance of going to Juneau and of learning how it all works in Juneau. He noted that the Mayor's Conference is going to be combined with Municipal League and that he hopes to go down again. He briefed the Council on the general lobbying process. He emphasized the importance of appointments with legislators, department heads, and the Governor if he is available, adding that the City staff will set up appointments. He reminded everyone to vote in the upcoming election.

COMMENTS OF THE CITY COUNCIL

Councilmember Yourkowski commented on Council's appointment to fill Beck's vacancy, that the secret ballot thing does not seem to be working. He suggested that it might be a good thing to keep this on the pending business agenda for the next meeting. He exhorted the Council to come to the meeting prepared with a list of qualifications and priorities that Council has in mind when they are voting, that then the Council can have an open discussion, maybe resolve the issues if discussing the qualifications, maybe agree on qualifications, look at each person's application and move forward. He asked Sue Mauger if she is a City resident, which she confirmed. He reminded the public that there is a special election coming up and that sales taxes are deductible on income tax and that property taxes will be reduced.

Councilmember Novak encouraged people to vote, adding that he wants people to realize that there is not a sentiment on this Council to raise property taxes, and was begrudging that they had to do so in October 2004, that they did not want to do that and do not want to do that in the future. He noted that there is no vision in the near future for the Council to do that if Council is able to achieve the additional 1% sales tax.

Councilmember Wythe addressed Ms. Lord's inquiries about the Land Bank and that there are some revisions planned. She emphasized that they are not looking for a huge volume of money, that the Council does need to look to every revenue source and channel those as much as possible. She asked the Library Advisory Board about the donations to the Friends of the Library, asked them to come back to the Council to tell Council alternative ways to raise revenues to help support the Library as opposed to the Council trying to come up with something, adding that this is more feasible since the Library Board knows the rules and confines. She challenged the Library Advisory Board to come up with ways to come up with the additional money that is needed if the desire is to have the Library staffed and functioning at its fullest level. She encouraged people to vote absentee if they are going to be gone during spring break and that absentee voting is open now. The sales tax issue is very volatile, the financial situation is very volatile. The Council is asking people to take consideration of the larger picture of where the City needs to be, recognizing in the short term that the money is needed to plow the roads and sweep the sidewalks. If the Council does not come up with the revenues those services are going to have to be looked at for diminishing or elimination. She stated that she did not believe Council's intention was to "bait and switch" with regard to the property tax increase n 2004 to the reduction associated with this sales tax increase. She confirmed, after conferring with a local tax accountant, that the sales tax is an income tax deductible item. She addressed Mr. Wells comment that she does not believe it is the Council's intent to come back next year and increase the property tax, adding that Council's intent is to address the fiscal gap on a long term basis. She cited some of the deficit areas that the City is facing such as the pension plan and the new Library operation costs $300,000 plus and $100,000 for the loan payment, gas prices go up and insurance rates continue to rise. These are not costs the City has control over and these are not optional costs. The issue of voting for the sales tax is telling the Council if the people want to continue the services as they exist to day, fund non profits and other organizations as it exists today, or do something different, which may mean cutting essential services. She noted that the City took some criticism about two positions that are vacant due to the hiring freeze, the Assistant Fire Chief and a Police Officer. She emphasized that there are only a couple of ways to balance the budget when there is not a revenue increase - hiring freeze and cut services, adding that even cutting funding to non profits will not put a dent in the fiscal gap. The sales tax is a short term fix, with the hope that there will be some growth and economic stability coming into the community for the long term.

Councilmember Beck commented that one of the first things she heard when she came to this community, at a Garden Club meeting, was "for the good of the whole". She noted that this is what Councilmember Wythe was talking about, requesting each as tax payers and residents of this community to take a stand and really consider voting for an increase in tax for the good of the whole. She offered assurance that this money is not going to benefit this Council sitting here and that it is going to benefit the whole community and that it is for the good of whole.

Councilmember Stark, responding to Councilmember Yourkowski's comments about the qualification of candidates, pointed out that Council is not hiring staff, Council is hiring people to represent the community and the people sitting around the Council table pretty much know how much the various candidates will represent the citizens of the community, which is the basis of the votes. He remarked about attending the Flood Plain Management Conference in Seward, the 31st and 1st and that they manage a large number of properties in the Homer area and have found over the years substantial problems that the buyers have, because of lack of jobs in this area causing people to move or work in Anchorage or the slope or give up their land and home. He reiterated a comment he had previously made about the increase in clients at the Homer Food Pantry. These are reasons he has been concerned about the lack of jobs in Homer and that people deserve a break.

Councilmember McLay advised that he received a phone call this week from Washington D.C. soliciting support, in the form of a letter, for Civil Liberties in relation to the US Patriot Act. The contact offered to send a form letter and suggested that the letter be sent to all Homer's representatives in D.C. Mr. McLay expressed his opinion that this would be very advantageous, adding his belief that everyone feels that Civil Liberties is an important issue for all. He stated that he do a follow up on this, will get a copy of the form letter to the Mayor and Council for discussion and to ascertain where the Council wants to go with it. He voiced his objection to the sales tax increase. He stated that property tax revenue is budgetable and sales tax is illusive and is only projected. Every time a sales tax is put on it does not go away. He promised that if this sales tax is passed and if he is still sitting at the Council table and it is found that this revenue is not needed, that he will do everything possible to bring it back up and take it off the tax roll. He thanked all.

ADJOURNMENT

There being no further business to come before the Council the meeting was adjourned at 8:52 p.m. The next regular meeting is scheduled for Tuesday, March 29, 2005 at 7 p.m. and the next Committee of the Whole is scheduled for Tuesday, March 29, 2005 at 4 p.m. All meeting are scheduled to be held in the Homer City Hall Council Chambers located at 491 E. Pioneer Avenue, Homer, Alaska.

_____________________________________________

MARY L. CALHOUN, CMC, CITY CLERK

Approved: Date: _________________________________

1. Believed to be a reference to the Library Fees (Ordinance 05-08).