HOMER CITY COUNCIL

Session 03-07, a Regular Meeting of the Homer City Council was called to order at 7:35 p.m. by Mayor Jack Cushing at the Homer City Hall Council Chambers located at 491 E Pioneer Avenue, Homer, Alaska, and opened with the Pledge of Allegiance.

The Council's Committee of the Whole met from 4:00 p.m. to 6:00 p.m. Items discussed were the

Water and Sewer Improvement District Assessment Methodology, Housing Initiative Inc. a 501(c)(3) Non Profit Interested in Building an assisted living 6 to 8 plex and the Regular Meeting Agenda Items.

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

STAFF: CITY MANAGER WREDE

CITY CLERK CALHOUN

PUBLIC WORKS DIRECTOR MEYER

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 Council consensus with the following changes and/or notations: Substitute Resolutions 03-48(S), 49(S) with Memorandum 03-47 and Substitute Ordinance 03-19(S) under the Consent Agenda and Substitute Resolution 55(S) under Resolutions. Fax from Frank Griswold regarding Memorandum 03-46.

PUBLIC COMMENTS UPON MATTERS ALREADY ON THE AGENDA

John Calhoun addressed the Council regarding Ordinance 03-15 and referenced page 158 of the packet. This is a map of the area and adjacent area being requested for rezone and depicts ownership and zoning district. He noted that he had drawn this map and submitted to the Committee of the Whole on March 10, 2003. He commented noticing at the Committee of the Whole, today, that there was a question as to where the rezone was located relative to other properties, in particular the City properties. He commented that the map, in essence, shows what is going on around the three lots being requested for rezone from Marine Industrial to Marine Commercial:

City properties zoned Opens Space Recreational

Campground Registration building, City owned, zoned Marine Industrial

Glacier Drive-In - privately owned, zoned Marine Industrial

Sports Shed, Homer Enterprises, zoned Marine Commercial

Formerly Synhorst Boardwalk, zoned Marine Commercial

English Bay Corporation, believed to be putting in an RV park, zoned Marine Industrial

Fishin' Hole, Pier One Theatre, zoned Marine Industrial

Charter Office, Showers and Sports Gear Rental, zoned Marine Industrial, City owned leased lots

He advised the Council that where he is headed with this is that every use around this is more of a Marine Commercial use and not a Marine Industrial use. He voiced his opinion that it is kind of ironic when one applies for a zoning change, that it costs $100.00 to ask the City to rezone and that one of reason cannot be for financial gain; therefore, this is benevolent. He stated that frankly this is an issue that should have been addressed or should be addressed with the Comprehensive Plan, because the uses are more Marine Commercial. He expressed his thought that the Council does not want to see cranes, connexes, freight storage or marshaling over in this area, adding that everything around it is truly more of a commercial and recreational type usage. He commented on the fact that the City has not addressed the rest of this area and that this is not anything the applicant can do anything about. He suggested, as an aside, that it might be appropriate to ask the administration to have planning take a look at those issues on the other lots near by. He encouraged the Council to keep their focus on what the applicant is trying to do, interjecting that they cannot ask the Council to rezone this area because of what they want to do, that it must be on the basis of what is good and right for the Community. Mr. Calhoun relayed that this is why it is a little funny that the applicant has to pay $100.00 to come down and ask the City to do what is right for the community. He emphasized that what he is trying to point out is that what is happening out there is the more tourist and commercial type uses. He shared with the Council that the only real objection that he hears is with the hotel/motel issue. He noted that the Planning Commission jumped on this thing and with little discussion voted unanimously for this rezone, because it is a softer impact zoning and moving more toward open space recreational than scrap metal stored out there waiting to be shipped. He relayed that one issue that he keeps hearing about is that if the Council rezones this the property the owner could put up a hotel. He agreed that could happen if the Planning Commission allowed it. He advised that there is no current buyer for this property. It would not be a very large hotel due to the postage stamp sized lots. There is an RV park close by that would require someone to knock on each door to notice the public of a Tsunami, wherein a hotel would probably have a central alarm system. He stated that he does not really see anyone going in there and putting in a hotel and if they wanted to it would have to go through the Planning Commission process. He noted that noone in town is required, through building codes, to make a property or structure earthquake proof. He queried the Council if they remember the last time Homer had a Tsunami hit town, emphasizing that he can remember the last time there was an earthquake and yet everyone is always worried about an Tsunami issue on the Spit. He commented that a nuclear attack probably has an equal level of probability. He cited, as example, Waikiki Beach where no one seems to be particularly concerned about a Tsunami. He urged the Council to look at these three lots, Mr. Steiner's two lots and Mr. Young's lot of which Mr. Young will surely speak, strictly in the context of community welfare and community good and to look at what is happening around there that it is more Marine Commercial than Marine Industrial. He concluded by stating that people coming to them are predominately looking for Marine Commercial uses.

Hardin Terrell voiced opposition to Resolution 03-40 and asked the Council to consider, if there is further testimony to the opposition of this, that they consider it and leave as is now. He advised that he and his wife are in favor of leaving it as it is now and are happy with it.

Roger Imhoff commented that he and his wife own property in the City and that he wants to speak in regard to Consent Agenda Item E. Resolution 03-48, Forest Glen. He voiced his hope that the Council received his email this week and asked the City Clerk if it is a part of the public record.

City Clerk Calhoun confirmed.

Roger Imhoff commented that it seems to him that the rules regarding the assessments of resubdivisions within the LIDs changed quite drastically last December when the Council passed the Ordinance 02-48. He stated that under the old rules if a lot was being resubdivided the LID assessment would be apportioned amongst those new lots. So in other words if a person had a $10,000.00 assessment and split their lot in half $5,000.00 would go to each lot. Under the new proposed or accepted rule each lot gets a full assessment. He voiced his opinion that, first of all the property owners of Forest Glen Subdivision are especially impacted by this Ordinance, because all of the lots are around an acre each and zoned for 7,500 square foot lots. If a subdivider was very mercenary about it, so to speak, he could get four or five lots out each one of these large lots. However, with this new ordinance, if each new lot is assessed the full amount it is highly likely that there won't be any new subdivisions within Forest Glen Subdivision, because the market of the lots would just not bear the price of those full assessments. He advised of a meeting he and Phil Needham had with City Manager Wrede two or three weeks ago and that he believes that what he is telling the Council here tonight is correct about these full assessments. He reported that the owners of six of the lots, including himself, Phil and Sharon Needham, and John Blaine have prepared preliminary plats to submit this week to the City Planning Department and that they propose to add an additional ten lots to this subdivision. Since there is already twenty assessed lots within this subdivision this would favorably impact the rest of the owners by decreasing their assessments by $5,000.00 per lot, exactly a third. He noted that right now the property owners are looking at a $15,000.00 assessment per lot and if they can get the subdivision recorded in time that will bring the assessment per lot down to $10,000.00, a savings of around $100,000.00 for the twenty original lots. Mr. Imhoff stated that they would like the Council to revisit this Ordinance and either grandfather them in or give them some sort of administrative grace period to get the plats recorded. He pointed out that, if there are no problems encountered along the way, it takes approximately three months to get a plat through the City, the Borough and recorded. The Planning Commission meeting dates are, at the earliest, May 12th to get preliminary approval at the Borough. Assuming that there is a City Planning Commission meeting at the appropriate time and that the minutes are done in a reasonable amount of time to submit the plat to the Borough by April 21st. It usually takes two or three weeks after that Borough preliminary approval to get a plat recorded, which would be the end of May or into June. According to the City Code the plats must be recorded to be considered within an lid. He voiced his hope that the Council would go into this Ordinance and clarify the language, since they don't think it was Council's intent to penalize those in Forest Glen or other subdivisions that have large lots that could be potentially subdivided and apparently that is the way the Ordinance came out of the pot. He voiced the hope that the Council would revisit that and grand father them in if possible or at the very least give a grace period so that they can get their plats recorded. Mr. Imhoff asked if Council had any questions and they did not.

Phil Needham said that he wanted to say a few other things in defense of Roger and himself on this project. He advised that he came into this thing a little later than Roger and that when he bought this property he based it on what was the current Ordinance, which he thinks is 17.04.180, and so that is what the people that made the decision to do the LID based their decision on, the Ordinance that was on record then. Roger bought his property then, based on that Ordinance. He emphasized that this LID is under construction and still in the works, when all of a sudden the Council writes an Ordinance to change it, to drastically change things on him and all the other property owners in the subdivision. Mr. Needham pointed out that no one likes the rules changing in the middle of the game. He asked the Council to revisit that. He stated that from his understanding of the change in the Ordinance that there were eight or nine LIDS in the process or going on at the same time right now and in some of the subdivisions people were vacating their lot lines and making two or three lots into one lot so that they would only have one assessment and that the Council was trying to create an Ordinance to stop that from happening so that they could not come back and resubdivide and not get penalized. He made the following points:

This subdividing is totally opposite of those who vacated lot lines.

Once these lots are subdivided, if Council grants a grace period to get the plats recorded, there are still no hook ups. Each new lot will still have do the hook ups.

These new lots did not get all the hook ups the other lots got during the initial assessment, but will still be paying a full assessment.

H stated that this is not entirely fair, although some things just aren't fair.

Dan Young addressed the Council regarding Ordinance 03-15 and advised that he is the other lot owner that John Calhoun referenced, adding that Mr. Calhoun covered this pretty well. He read a small piece of the Planning Department report from March 5, 2003. In the staff observation in the back it says:

"If the lots in question, Steiner and Young properties on the Spit, were to remain designated Marine Industrial the uses permitted for the land could have more of an adverse effect on the Homer Spit and continue to contradict the overall intentions of the City's Comprehensive Plan. The requirements for the property zoned Marine Industrial would allow for larger structures to be build on the site as minimum lot size and set backs for the property would be less restrictive than if the property were zoned Marine Commercial."

He commented that there seemed to be an impression before that this would be protecting that property, in some way, by leaving it Marine Industrial, because it would restrict someone's ability to put in there a motel or hotel operation. He reminded the Council that they are still protected by the conditional use permit and the Planning Department still feels that this is rezone should be done. He interjected that this was written after the first meeting and the first objections.

Mark Edminster commented on Resolution 03-40, that after he having fished most of his life he would think that things would be divided out equally instead of on a per square foot basis and that this would probably be more equal for everyone involved.

Joan Terrell addressed the Council regarding Resolution 03-40 and advised that she and her husband feel that to charge for a sewer LID by square footage is wrong and unfair in such a small community as Homer. She told the Council that they feel the only fair way is one price for all and that to charge by square foot the larger properties are just subsidizing the smaller properties. She stated that they purchased a larger lot twenty two years ago because they wanted privacy not to subdivide and did not want to live on a postage stamp. She voiced their hope that the Council would give the project deep consideration and think about the older retired community residents living on a fixed incomes.

Manfred Gaedeke stated that he would like to go on record that he is completely opposed to the proposed change in LID assessment by square footage and that he thinks this is an unfair way of doing it.

Ken Castner spoke to the Council about Resolution 03-27, regarding the Town Center overlay or the Town Center District. He commented about writing a letter to the Planning Commission and that he has been participating in the more recent Town Center meetings. He stated that he owns property in this district and believes that this district as it is constituted right now is too large. He acknowledged that the City is doing an awful lot of planning and right now and that he does not want to bring things into this process that do not belong there and that if the Council makes the overlay district too large that they are just asking for a lot of extra argument and a lot of extra superfluous sorts of things that really are not going to lend itself to the area that we are most interested in dealing with. He advised that when he says this what he means is that there are, in his mind, lots of things that can happen within this district that should not be happening, as far as he is concerned, clear across the entire Central Business District. This has encompassed almost the entire Central Business District. He listed things that he would like to see:

A readdressing of the parking Ordinance within this Town Center overlay.

Shared parking.

Municipal parking.

Things that reduce parking requirements so that multiple use parking can be used that complements one another.

More concise parking plans that are shared.

Green belts that are requirement for development plans.

Development plans.

Pathways and pedestrian access.

He emphasized that he thinks there are lots of things that can be done in a small area, but as soon as it gets too large then there will be a lot of people weighing in on different sorts of issues. He commented on listening to all the arguments on why it needs to be large, because it would connect the new hockey rink, the lake and clear across town. Mr. Castner shared his interest being between Heath Street and Main Street and that he would like that to be the area addressed in a more manageable size.

RECONSIDERATION

A. Memorandum 03-40, from City Clerk, Re: Fenske Notice of Reconsideration of Resolution 03-41.

The Memorandum contains the following:

During the Regular Council meeting of March 10, 2003 the vote on Resolution 03-41 was five no and one absent. Councilmember Stark moved for immediate reconsideration and that was also voted down. Later that evening Councilmember Fenske gave the Deputy City Clerk a notice of reconsideration. Robert's Rules of Order, tenth Edition, page 309, beginning on line 31: If it is voted on and lost, the motion to Reconsider cannot be renewed except by unanimous consent. So since the motion failed Fenske could renew, however, it must be unanimous consent on the vote and no objections under agenda approval or there is no reconsideration.

FENSKE/STARK - MOVED FOR RECONSIDER RESOLUTION 03-41.

There was discussion regarding the merits of the question.

Councilmember Fenske was encouraged to submit a Resolution similar to the substitute.

VOTE: YES: FENSKE, YOURKOWSKI, BECK.

NO: LADD, STARK, KRANICH.

TIE VOTE: MAYOR: YES.

Motion failed, this was required to be unanimous, see statement above.

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 Kranich requested that Items D. E. and F. be pulled. D to Ordinances and E and F. to Resolutions.

Councilmember Yourkowski inquired if Item J. would be placed under New Business. There was concurrence by the body.

A. Homer City Council unapproved regular meeting minutes of March 10, 2003 Recommend approval.

B. Ordinance 03-18, Of the Homer City Council Adding a New Chapter to the Homer City Code, 12.12, Flood Damage Prevention. Planning Commission. Manager. Recommend introduction, and setting public hearing for April 14th and second reading for April 28, 2003.

C. (Substitute approved under agenda approval.) Ordinance 03-19(S), Of the City Council of Homer, Alaska, Appropriating $30,028.00 from the Police Department Fleet Reserves, Authorizing the Purchase of One Patrol Car from Worthington Ford in the Amount of $22,028.00 and Authorizing the City Manager to Execute the Appropriate Documents. HPD. City Manager. Fiscal Note: HPD Fleet Reserves Acct. 152-382. Recommend introduction, and setting public hearing and second reading date for April 14th.

Memorandum 03-41, from Chief of Police as backup.

D. Ordinance 03-20, Of the City Council of the City of Homer, Alaska, Amending the Homer City Zoning Map to Zone Portions of the Annexed Area Identified as Study Area #6 per Attached Exhibits A and B. Planning Commission. Recommend introduction, and setting public hearing for April 14th and Second Reading for April 28, 2003.

Placed under Ordinances.

E.(Substitute approved under agenda approval) Resolution 03-48(S),Of the City Council of Homer, Alaska Noting Public Works Acceptance of the Forest Glen Water and Sewer Improvement Project, Accepting this Project for City Maintenance and Forwarding the Assessment District to the Final Assessment Roll and Payment Process and Setting a Public Hearing Date of April 28, 2003. Public Works. City Clerk. Fiscal Note: HAWSP and Property Owners 50% each, project cost is $612,407.77. Recommend adoption.

Memorandum 03-42 , from Public Works as backup.

Placed under Resolutions.

F.(Substitute approved under agenda approval) Resolution 03-49(S), Of the City Council of Homer, Alaska Noting Public Works Acceptance of the West Lake Shore Water and Sewer Improvement Project, Accepting this Project for City Maintenance and Forwarding the Assessment District to the Final Assessment Roll and Payment Process and Setting a Public Hearing Date of April 28, 2003. Public Works. City Clerk. Fiscal Note: HAWSP and Property Owners 50% of $499,513.34; project cost is $578,297.34. Recommend adoption.

Memoranda 03-43, from Public Works as backup.

Memorandum 03-47 added with the substitutes.

Placed under Resolutions.

G. Resolution 03-50, Of the City Council of Homer, Alaska Authorizing the City Manager to Execute the Renewal Agreement for a Banking Services Contract with Wells Fargo Bank Alaska to Extend the Contract to December 31, 2004 at a Cost of Maintaining a Compensating Balance of $195,000.00 and Approving the Automatic Renewal Provision. Finance. Recommend adoption.

H. Resolution 03-51, Of the City Council of Homer, Alaska Requesting the State Legislature to Authorize the Naming for Clarification Sections of a Public Way Known as Beach Road, Airport Bypass Road and Kachemak Bay Drive to Kachemak Drive in Order to Retain Continuous Recognition of the Street From the Intersection of Homer Spit Road to the Point of Termination at East End Road. Mayor and Council. Recommend adoption.

I. Resolution 03-52, Of the City Council of Homer, Alaska, Encouraging the State of Alaska to Continue to Support the Community Schools Program at Current Levels. Mayor. Recommend adoption.

J Memorandum 03-44, from City Clerk, Re: Travel Authorization for Mayor, City Council and City Manager to attend the Tenth Annual AML Legislative Conference, April 23 - 24 in Juneau. Fiscal Note: Mayor and Council: 2003 Budget: 100.5236.100, Transportation: $6,500.00 100.5237.100, Subsistence: $4,500.City Manager: 2003 Budget 100.5236.110, Transportation: $1,700,100.5237.110, Subsistence: $1,000.00 Recommend approval.

Placed under New Business.

K Memorandum 03-46, from City Manager, Re: Clarification of Record Regulation and Fees for Privileged Review/Staff Research of Public Documents. Recommend approval.

KRANICH/BECK - MOVED FOR THE ADOPTION AN/OR APPROVAL OF THE RECOMMENDATIONS OF THE CONSENT AGENDA AS READ.

VOTE: (Items d,e, f and j. removed) YES: BECK, FENSKE, LADD, YOURKOWSKI, STARK, KRANICH.

Motion carried.

VISITORS

None scheduled.

ANNOUNCEMENTS/PRESENTATIONS/BOROUGH REPORT/COMMISSION REPORTS

A. Mayoral Proclamation for Library Week, April 6 - 12, 2003.

Library Advisory Board Chair, Nancy Lord, advised that Helen Hill, City Librarian, would be present except she is out of town. Chair Lord reported on the activities of the Library to celebrate Library Week and encouraged attendance by everyone especially the public.

About a dozen Homer businesses will have decorative canisters to collect change and bigger donations for the new Homer Library Project, part of the effort to include everyone in the project.

Informational table at Eagle Quality store regarding the project.

April 11 and 12, Library host a Open House with a display of other libraries to help people envision the new Library

She encouraged the Council and everyone to drop by at the Open House, adding that this is one of the few times people can eat in the Library. She thanked the Council and announced her ready availability for answering any questions.

Councilmember Ladd noted that there have been many studies done on libraries and student usage. Those students who use libraries frequently and read books have higher achievement scores. He thanked the volunteers and library staff for their work.

Councilmember Stark advised that he is in favor of a bigger and better library with more books and more space to better serve the community, adding that he thinks the current library and staff are outstanding at this time as are the groups that support the library.

PUBLIC HEARING(S)

None scheduled.

ORDINANCE(S)

A. Ordinance 03-15, Of the City Council of the City of Homer, Alaska, Amending the Homer City Zoning Map to Rezone Portions of the Marine Industrial District (MI) to Marine Commercial District (MC). Planning. (Introduction and First Reading postponed on 02/24/03 to 03/24/03Main motion is on the floor, Public Hearing 04/14/03 and Second Reading 04/28/03.)

Mayor Cushing advised the Council of a potential conflict of interest with regard to his client English Bay Native Corporation, and turning the gavel over to Mayor Pro Tempore Yourkowski, left the table at 8:38 p.m. Mayor Cushing plans to stay involved with the City owned properties, EVOS lands and etcetera.

Main motion is on the floor: WAS MADE UNDER CONSENT AGENDA ON FEBRUARY 24, 2003. (For the adoption of the recommendation to introduce.)

There was brief discussion with many of the comments made under Public Comments by John Calhoun and Dan Young being reiterated. Council noted that Marine Commercial is a lighter use than Marine Industrial. There was a concurrence of the Council that the City Manager and the Planning Director pursue rezoning of the other Marine Industrial lots to either Marine Commercial or Open Space Recreational as a separate matter from this Ordinance and that the City leased lot be rezoned from Marine Industrial to Marine Commercial, which is actual usage. Other areas to be considered are the EVOS purchased land, Fishin' Hole and other City owned properties, any lots that are ready to be rezoned and that the Comprehensive Plan be followed or changed. There was comment, pro and con, that when leases expire these areas be zoned to follow the Comprehensive Plan.

Verbatim comments as directed by the Council on April 14, 2003:

Mayor Cushing: We have the motion on the floor to adopt this. The motion on the floor was to adopt this for introduction, right Madam Clerk? And to set hearing. Before we go too far into this, since it's on the floor, I'm probably going to have to recuse myself and I'll go through the reasons. For certain reasons, but in the long run it depends on the way you guys take this. If on it's face, I'm having trouble, depending where you go with the discussion on it, if it becomes a tie vote to me and I vote for it, I could be accused of greasing the, or just making it easy for my client to do the same thing. If it's a tie vote to me and I'm against it, I could be accused of my client didn't want it, whose right directly adjacent and across the street, so I've been wrestling with that, but then when I put it in light of my support of the Comprehensive Plan over the years which is clear and in the record long before that was a client of mine, I have the intention of the Comprehensive Plan foremost to me. So what you folks are going to do tonight is tie this to a response. I don't feel I have a conflict down there. For the record the Comprehensive Plan and other beach use and everything so I guess I am definitely going to recuse myself and give the gavel to Mike on this just on the simple fact of what I first said. No matter where you go with the zoning change, I've got a client, a one hundred acre client, all around that property. But I'm going to reserve capacity for any further discussions up to be generally what we do with the city lots and the zoning and then the city lots back down the beach there. I don't feel I have a conflict on those, so if you do discuss that in the context of this discussion in the next few minutes I'll be, when decisions or discussions on those other city lots come up, I'll rejoin you at a later date. So with that, have fun Mike.

Mike Yourkowski: Okay, we have Ordinance 03-15 on the table. Is there any discussion?

John Fenske: Well, during the Committee of the Whole today we heard what I felt was quite adequate testimony from a couple of individuals who are involved in this party, one of them being a land owner, or a property owner. And another being a real estate representative who is involved in selling property on the Spit. And it was pointed out to us that the uses that the properties between the Fishin' Hole on the east side of the Spit and those properties on the west side of the Spit and the uses that they are currently being put to from there, down even past the lots which are in question are generally used in a Marine Commercial fashion. Our Planning Department brought to us a recommendation that they felt that this would decrease the impact. This zone change would decrease the impact on the property on these sites, rezoning them from Marine Industrial to Marine Commercial. And I feel that for the best interest of the City that if we are able to reduce the potential impact to the west side, southwest side of the Spit, which is exposed to the greatest amount of storms and weather phenomenon and erosion and that kind of stuff, that the better off we are. There seems to be from minutes from the Port and Harbor Meeting and other discussion, there seems to be a concern that someone is going to construct motels on this property and in doing that we would be actually placing people in danger from tsunami or some adverse weather phenomenon as well as degrading the view over that property. But, it was brought out in the discussion also that in the industrial usage of those lots, if someone so desired, it could actually look much worse than what could be put on there in the way of Marine Commercial. And I feel just from the standpoint of the community, unless we are going to anticipate purchasing the properties, which may be a solution also, that we should not prohibit the ability of the land owners to utilize their properties just because that is part of it. In the rezoning they'll be able to utilize their property in a little different fashion. They'll be able to do some commercial business there, whether it's selling gift goods and that sort of thing, as has been pointed out is what is happening on most of the other properties that has improvements on it. In the way of camper parks and this type of usage I don't see that we're going to be doing anyone any favor in not rezoning this, or allowing the rezone of that. That's basically my feelings.

Mike Yourkowski: Any comments, Doug?

Doug Stark: I had misgivings about this when it came before us four weeks ago and I've been satisfied since then that this is a reasonable thing and I agree with what the Honorable Mr. Fenske has said.

Mike Yourkowski: Any other comments, Rick?

Rick Ladd: There is a lot of Marine Industrial on the Spit, if you look at the dark blue on the map over there, and the three lots we're talking about, and then if you're going towards the end of the Spit you jump over one that is Open Space Recreational and you hit one of ours which is City property, which is identified as Marine Industrial on the western side of the Spit. Our Homer Comprehensive Plan indicates that we should be working towards Open Space Recreational in this area. I agree. I think placing these three lots into Marine Commercial may be a step. But I think we also need to make, be it not as an amendment, but as some kind of a recommendation to our Planning Commission to look at the lot which we own which is presently being leased as Marine Industrial. Finding out first, when is that lease come up, and then is it necessary to keep it as Marine Industrial or should we also walk that down to Marine Commercial as a first step to try and get it in concurrence with our Comprehensive Plan?

Mike Yourkowski: Well I certainly agree with that, Rick, and I was just wondering do we have some kind of consensus to recommend that the City Manager, with the help of the Planning Director, pursue that?

John Fenske: As part of this?

Mike Yourkowski: No, just separately, just instructions to the City Manager. Ray, how do you feel about that? Is that okay?

Ray Kranich: Oh, yeah.

Mike Yourkowski: Okay, very good. Any other comments on 03-15?

Ray Kranich: Yes, thank you Mr. Mayor. Well I would just would like to point out that in both zones RV parts are an allowed use. However in the Marine Commercial, let me get this right here, hotels and motels are a conditional use in there, which is not allowed in Marine Industrial, so if someone were to want to put a hotel or motel there they would still have to go through the conditional use process with the Planning Commission. Likewise, pipelines and railroads would have to also. And it's the same for either zone, but yes, the Marine Industrial does allow several things of temporary storage of equipment and warehousing and marshalling yards and that type of thing that are not allowed in the Marine Commercial. The Marine Commercial definitely would have the lighter impact to the area, the potential lighter impact to the area. I just wanted to be sure in my mind as to on the RV parks, whether they were a conditional use or an allowed use. But they are an allowed use in both zones.

Mike Yourkowski: Had a call for the question. Can we have a unanimous on that?

John Fenske: No objection.

Mike Yourkowski: Madam Clerk, could you call the roll call on Ordinance 03-15?

VOTE: YES: KRANICH, BECK, FENSKE. LADD, YOURKOWSKI, STARK.

Motion carried.

Mayor Cushing returned to the table at 8:42 p.m. and received the gavel from Mayor Pro Tempore Yourkowski.

Mike Yourkowski: Thank you, and we'll invite the Mayor back to the table.

Mayor Cushing: Thank you, Mr. Mayor Pro-Tem. We want to clarify that sets it for public hearing on the second reading of this.

Mike Yourkowski: Madam Clerk, public hearing will be 4/14 and second reading will be 4/28. The one issue I did say I would stay involved with were the city-owned properties and where we go with those, as well as the one that Rick brought up, we still have some of the Evo's purchase land and the Fishin' Hole that we technically need to get brought into to do some rezoning on.

Walt Wrede: Yes, I was going to ask for clarification on that. Would you like the Planning Commission to look at just the city-owned lots that we talked about tonight, but also the Evos, the whole picture? Any city-owned lots?

Mayor Cushing: Any that are ready to go. Some of them, I mean like the Comprehensive Plan talks about the green area at the top, but we're not ready to go on that. There's still the line between the camp ground and the flushing ground that needs to be determined. But the Evos land, I think most of it might be ready to go at that. The city-owned lots, the City has a track record on the back side clearly, I mean on the front side they've purchased some land up the Spit. They traded next to Homer Ocean Charters. They traded out what was going to be a development on the inside for the development that happened across the street on the rim of the harbor. So the City has tried to live up to its Comprehensive Plan there. I would like to up the ante on Rick's suggestion going from Marine Industrial, give the Planning Commission just to take it clear to open space where that boardwalk is, clearly, that boardwalk during the life of the lease would be what it is. Nobody would get kicked off during the lease but and then of course when that lease runs out, however many years from now, that owner has the capacity to come to any number of councils and try and convince them to change the Comprehensive Plan and allow the boardwalk to continue use on the Otter Beach there, but if we want to stay with our Comprehensive Plan I think you could up the ante, just take any city-owned lands whether they got improvements on them or not and say when the lease is over we got a Comprehensive Plan driving our zoning and would like to take it to what our Comprehensive Plan says and that is open space rec. Either that, or change the Comprehensive Plan. Yes, Doug?

Indiscernible comment.

Mayor Cushing: Right, this is what I reserved that wasn't a part of the conflict of interest, so we can go on. Unless you want to make it formal, if Council wants to make it. Is there a motion to further discuss?

(Several Councilmembers answered no.)

Mayor Cushing: Is that your way of saying call the question and get on with it? Thank you. It works for me. Thank you, Madam Clerk.

Councilmember Doug Stark: Mr. Mayor, I'll do this real quick. I don't necessarily agree with elimination of the boardwalk when the lease expires.

Mayor Cushing: Okay, that's what I think. Okay, that's just a point in time what the Council thought. Alright, we're done. We'll go to the consent agenda. ordinance item. Item D, Ordinance 03-20 of the City Council of the City of Homer, Alaska.

B. Consent Agenda Item D. Ordinance 03-20, Of the City Council of the City of Homer, Alaska, Amending the Homer City Zoning Map to Zone Portions of the Annexed Area Identified as Study Area #6 per Attached Exhibits A and B. Planning Commission. Recommend introduction, and setting public hearing for April 14th and Second Reading for April 28, 2003.

KRANICH/BECK - MOVED TO ADOPT ORDINANCE 03-20 BY READING OF TITLE FOR INTRODUCTION.

There was a question regarding notification to all property owners within Study Area #6 since there are differences in the maps in the packet.

KRANICH/STARK - MOVED TO POSTPONE ACTION ON THIS ORDINANCE AT THIS TIME UNTIL THE NEXT MEETING, APRIL 14, 2003.

Councilmember Kranich asked for confirmation of notification to the property owners.

VOTE: YES: NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

CITY MANAGER'S REPORT

A. City Manager's Report

1. Updates/Follow-Up.

2. Status Report - Flood Damage Repair/FEMA Assistance.

3. UAA Bridge Creek Reservoir Parcel Purchase/Environmental Analysis.

4. Kachemak Heritage Land Trust purchases Platt Park.

5. Center for Alaskan Coastal Studies receives grant from Homer Foundation.

6. Homer Senior Citizens receives grant from Homer Foundation.

7. Homer Council on the Arts receives grant from Homer Foundation.

8. Memo from Harbor Director regarding City Fisheries Business License.

9. City of Homer receives grant from EPA for Wetlands Management Strategy Project.

10. Memo from Police Chief Mark Robl regarding weekend activities.

11. Letter to Mayor regarding Storage Space near Harbor for CISPRI.

12. Letter of resignation from Daryl Farrens, Homer Community School

B. Bid Report

C. Records Report.

City Manager Wrede updated the Council on the updates:

There has been a real break through on the negotiations with the USCG regarding the Hickory and that the lease will be to the Council at the next meeting.

The USCG has agreed to own and maintain the six high tension winches.

The history of the water delivery study is being reviewed prior to the letters being sent.

Petro Marine now understands the urgency to get something done and that this is holding up the City fund raising efforts. A letter was sent today requesting something from Petro Marine regarding their intentions to sell and that the Borough appraised value will be used as a starting point for negotiations. No formal offer has been presented to them, which would include environmental considerations, insurance, taxes etc..

Recommendation to disband the Town Square Task Force within the next three months and forward the recommendations to the Planning Commission. Barb Seaman, Kachemak Heritage Land Trust voiced agreement in a meeting with the City Manager. The plan is to have two to four plans for the Commission to consider, one has already been done by Chris Beck and then one produced by the Chamber of Commerce. Lots of advertising, lots of public hearings, articles in newspapers, radio talk shows and everything that can be thought of to re engage the public in this project discussion. Then develop a strategic plan to accomplish the project.

The Cispri issue is being addressed.

Mayor Cushing reported on the Arctic Winter Games Contract being awarded to the Kenai Peninsula Borough. He noted that there is no budgeted money that has been given to the City to build a curling facility. He apprized the Council of lobbying processes to obtain the curling facility, interjecting that designing may need to be done to get the facility. He informed the Council that he did state that there are other projects ahead of this such as the Library and that it is his intent that these projects not be pitted against each other.

There was a consensus of the Council that the City Manager place signage up at the skateboard park regarding basic rules/guidelines.

City Manager Wrede was commended for submitting an excellent informative report and for the very well done letter to Petro Marine.

A project list will be developed and forwarded to Representative Seaton for last minute State appropriations.

COMMITTEE REPORT

A. Large Store Impact Task Force

Councilmember Ladd distributed to the Mayor and Council a draft report regarding impact statement and standards. He reported that the Task Force meets tomorrow night, March 25th at 6 p.m. in the Council Chambers and may meet a couple more times. The initial plan was to have a report to the Council by the March 24th Council meeting. Areas to be resolved are:

Site development.

Utilities and services provided by the City..

Environmental Impact.

Community Impact.

Fiscal Impact to the community, to businesses and to the City.

B. Town Square Task Force.

Councilmember Beck reported that the Task Force did not meet on the 20th and is scheduled to meeting on April 17th at 7 p.m.

PENDING BUSINESS

NEW BUSINESS

A. Consent Agenda Item J Memorandum 03-44, from City Clerk, Re: Travel Authorization for Mayor, City Council and City Manager to attend the Tenth Annual AML Legislative Conference, April 23 - 24 in Juneau. Fiscal Note: Mayor and Council: 2003 Budget: 100.5236.100, Transportation: $6,500.00 100.5237.100, Subsistence: $4,500.City Manager: 2003 Budget 100.5236.110, Transportation: $1,700,100.5237.110, Subsistence: $1,000.00 Recommend approval.

STARK/LADD - MOVED TO APPROVE THE RECOMMENDATIONS OF MEMORANDUM 03-44.

There was lengthy discussion which included budgetary impacts. It was noted that the Annual AML Fall Conference will be in Nome this year and that travel is very expensive. Lobbying efforts were discussed.

LADD/KRANICH - MOVED TO AMEND THAT THE CITY SEND THE CITY MANAGER AND ONE REPRESENTATIVE FROM THE CITY COUNCIL.

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

Motion carried.

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

Motion carried.

RESOLUTIONS

A. Resolution 03-27(S), Of the City Council of Homer, Alaska, to Designate an Area of the Central Business District as the Homer Town Center District for the Purpose of Master Planning. Beck. Postponed on 02/10/03, Postponed on 02/24/03 to 03/24/03 Main motion is on the floor.

MAIN MOTION ON THE FLOOR: STARK/BECK - MOVED TO ADOPT.

There was a brief discussion. Councilmember Beck asked for this to be voted down.

VOTE: YES: NONE.

NO:. BECK, FENSKE, LADD, YOURKOWSKI, STARK, KRANICH.

Motion failed.

Mayor Cushing called for a recess at 9:40 p.m., reconvening the meeting at 10:01 p.m.

B. Resolution 03-35(S), Of the City Council of the City of Homer Finding the Need to Create the Saltwater Drive Water and Sewer Improvement/Assessment District and Setting the Date for Public Hearing as April 14, 2003. City Clerk. Fiscal Note: HAWSP and Property Owners 50% each. Estimated project cost is $1,077,000.00. Postponed on March 10, 2003.

Amended Resolution is submitted changing the public hearing date to April 28, 2003 and the end of the objection period to June 27, 2003.

MAIN MOTION AS POSTPONED IS ON THE FLOOR: FENSKE/KRANICH - MOVED FOR THE ADOPTION OF RESOLUTION 03-35(S) BY READING OF TITLE ONLY.

POSTPONED FOR DISCUSSION WITH CITY ATTORNEY. Mayor and Council received confidential legal opinion.

Council stated that their questions and concerns were satisfied.

FENSKE/KRANICH - MOVED TO AMEND TO ORDINANCE 03-35(S)(A) BY READING OF TITLE.

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

By consensus of the Council the Legal Opinion was released.

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

C. Resolution 03-40, Of the Homer City Council the Assessment Methodology for the Homer Accelerated Water and Sewer Program Districts from Equal Assessments per Parcel to Per Square Footage. Public Works. City Clerk. Recommend adoption.

Memorandum 03-45 from Public Works Director, suggestion.

This was pulled off the March 10th Agenda, no motion is on the floor.

FENSKE/LADD - MOVED FOR THE ADOPTION OF RESOLUTION 03-40 BY READING OF TITLE.

As stated at the Committee of the Whole there will be several assessment methodologies submitted with the Ocean Drive Loop Water and Sewer Improvement District prior to the petition going to the property owners for signatures.

Council commented on listening to the public asking them not to go with the square footage assessment methodology.

VOTE: YES: NONE.

NO: YOURKOWSKI, STARK, KRANICH, BECK, FENSKE, LADD.

Motion failed.

D. If reconsideration passes: Resolution 03-41, Of the City Council of Homer, Alaska Urging the Legislature to Fund Revenue Sharing and Safe Communities Funding at the Same Level as FY 2003. Fenske. City Manager. Finance.

Reconsideration failed. Original vote on March 10th that failed, stands.

D.1. Resolution 03-41(S), Of the City Council of Homer, Alaska Urging the Legislature to Fund the Revenue Sharing and Safe Communities Program at the FY 2003 Level and to Work Toward a Long Range Fiscal Plan. Fenske. City Manager. Finance. Page 297

Not considered. Councilmember Fenske was encouraged under Reconsideration to bring back to the Council a similar Resolution.

E. Resolution 03-53, Of the City Council of the City of Homer Noting the Insufficiency of the Petition for Rosebud Court Sewer Improvements. Public Works. City Clerk.

KRANICH/FENSKE - MOVED FOR THE ADOPTION OF RESOLUTION 03-53 BY READING OF TITLE ONLY.

There was no discussion.

VOTE: YES: NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

F. Resolution 03-54, Of the City Council of the City of Homer Noting the Insufficiency of the Petition for Kachemak Drive Phase I Water Improvements. Public Works. City Clerk.

BECK/KRANICH - MOVED FOR THE ADOPTION OF RESOLUTION 03-54 BY READING OF TITLE.

There was no discussion.

VOTE: YES: NON OBJECTION . UNANIMOUS CONSENT.

Motion carried.

G. Resolution 03-55(S), Of the City Council of the City of Homer Finding the Need to Create the Kachemak Drive Phase I Sewer Improvement/Assessment District and Setting the Date for Public Hearing as April 28, 2003. Public Works. City Clerk. Fiscal Note: HAWSP and Property Owners 75% each. Estimated project cost is $488,800.00.

FENSKE/YOURKOWSKI - MOVED TO ADOPT RESOLUTION 03-55(S) BY READING OF TITLE.

There was a question and discussion regarding exempting State leased properties, if the lessee is responsible for the assessment.

YOURKOWSKI/LADD - MOVED TO POSTPONE TO NEXT MEETING. April 14th meeting.

Other assessment methodologies are to be presented.

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

Motion carried.

H. Consent Agenda Item E.(Substitute approved under agenda approval) Resolution 03-48(S),Of the City Council of Homer, Alaska Noting Public Works Acceptance of the Forest Glen Water and Sewer Improvement Project, Accepting this Project for City Maintenance and Forwarding the Assessment District to the Final Assessment Roll and Payment Process and Setting a Public Hearing Date of April 28, 2003. Public Works. City Clerk. Fiscal Note: HAWSP and Property Owners 50% each, project cost is $612,407.77. Recommend adoption.

Memorandum 03-42 , from Public Works as backup.

FENSKE/LADD - MOVED FOR THE ADOPTION OF RESOLUTION 03-48(S) BY READING OF TITLE.

There was question and discussion regarding HCC 17.04.180 (Ordinance 02-48), with regard to subdividing prior to the Final Assessment Roll, how this affects the district and if the 50% property owner assessment remains in effect.

LADD/STARK - MOVED THAT THIS RESOLUTION 03-48(S) BE POSTPONED TO A TIME WHERE PEOPLE HAVE AN OPPORTUNITY TO FILE THOSE PLATS THAT THEIR ATTEMPTING TO DO FIRST MEETING IN JUNE.

Council asked for information from the Attorney regarding the above question and with the subdividing is the Council approving a different LID, should this now be 75% property owner share.

VOTE:(postponement) YES: NONE.

NO: STARK, KRANICH, BECK, FENSKE, LADD, YOURKOWSKI.

Motion failed.

KRANICH/LADD - MOVE TO POSTPONE ACTION ON RESOLUTION 03-48(S) UNTIL THE NEXT MEETING, APRIL 14, 2003.

Councilmember Yourkowski asked for a staff interpretation of Ordinance 02-48, HCC 17.04.180.

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

Motion carried.

Memoranda 03-43, from Public Works as backup.

Memorandum 03-47 added with the substitutes.

LADD/YOURKOWSKI - MOVED FOR THE ADOPTION OF RESOLUTION 03-48(S) BY READING OF TITLE.

Some of the costs of the project were discussed such as the cost of the bore.

VOTE: YES: NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

COMMENTS OF THE AUDIENCE

Mary Griswold gave the Council a copy of Senate Bill (SB) 63, first page, with her written concerns on the back. SB 63 is an act relating to municipal property taxation in annexed and detached areas. She encouraged the Council to consider supporting SB 63, which, she advised, is now in the Senate State Affairs Committee. She stated the following:

This legislation clarifies that property taxes accrue in fall on January 1 for each calendar year, newly annexed areas would be added to the municipality's tax rolls in the normal cycle as is other new property such as improvements to real property and new personal property under the existing assessment taxing procedures.

The LBC (Local Boundary Commission) has recommended that the legislature address this issue for the past several years.

Dan Bockhorst, Department of Community and Economic Development (DCED), raised the question when he was City Administrator in Haines in 1978 and that this has never been resolved.

This legislation is consistent with tax payers expectations for receiving tax assessments and bills.

It would establish, in advance, clear commonly understood revenue projections for everyone to work with while planning for services in territory proposed for annexation.

It would simplify planning for the transfer of responsibility for existing services among affected governmental units.

It will promote a more realistic petition abstract transition plan and budget for the public hearing now required before a petition can be submitted to the DCED.

It will facilitate more orderly annual budget development in all affected government units.

She said that if the Council has any questions or reservations she would appreciate the chance to talk to them about this more.

COMMENTS OF THE CITY ATTORNEY

City Attorney Tans was not present.

COMMENTS OF THE CITY CLERK

City Clerk Calhoun thanked the Council.

COMMENTS OF THE CITY MANAGER

City Manager Wrede had no further comments.

COMMENTS OF THE MAYOR

Mayor Cushing noted that they had already touched upon the items that Representative Paul Seaton had asked him about and had advised him that were in committee; briefly the rationalization and the Coastal Policy Council. He noted that the Council has weighed in on Rationalization and that he is making sure that this information is getting back to U.S. Senator Stevens. Mayor Cushing commented that if "they" have this "hearing" then the City needs to be prepared if still in the same position to go ahead and get some more information in on crab rationalization. He reported that Kodiak is "big time", adding that he spoke with them this weekend and they kind of surprised him with being on the same side as Homer and Seward, to ensure no inadvertent displacement of fisheries due to allocation of crab stock from the Bering Sea to processors. He advised that the Coastal Policy Council (CPC) is asking all the representatives for input on the Governor's move; 1 - to move the CPC under the jurisdiction of DNR, which is not such a big issue, 2 - to disband the CPC, which is in essence possibly giving back to administration all federal lands in the state regarding the administration of the coastal zone management issues. He informed the Council of his participation in the Alaska Marine Highways summit this weekend put on by ADOT and apprized the Council of those in attendance. He stated that the plan is to take the marine highway system and move it up one notch from the National Scenic Byway to an All American Road and there was concurrence among those in attendance. He noted that right now there are 15 All American Roads in the Nation and that the Seward Highway is one. Being an All American Road provides eligibility for additional recognition as well as additional funding at the federal level. There will be a push among the Cities of the system to make that elevation at the national level. He mentioned that there were some other comments made at the summit and that he would be glad to fill in the Council individually.

COMMENTS OF THE CITY COUNCIL

Councilmember Fenske inquired if the City Clerk understood that there was to be a visitor on the April 14th agenda regarding Kenai Peninsula Housing Initiative Inc. a 501(c)(3) Non Profit Interested in Building an assisted living 6 to 8 plex.

City Clerk Calhoun advised that the Mayor needs to approve that request.

Mayor Cushing agreed to the request, adding that he thinks this is a great idea.

Doug Stark reported that he would be attending the KPB EDD meeting on Thursday.

ADJOURNMENT

There being no further business to come before the Council the meeting was adjourned at 11:04 p.m. The next Regular Meeting is scheduled for April 14, 2003 at 7:30 p.m. The Committee of the Whole is scheduled for April 14, 2003 at 4 p.m. Both meetings are scheduled to be held in the Homer City Hall Council Chambers located at 491 E. Pioneer Avenue, Homer, Alaska.

____________________________________

MARY L. CALHOUN, CMC, CITY CLERK

Approved: ______________________