Session 04-10, a Regular Meeting of the Homer City Council was called to order at 7:00 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.

Council conducted a Worksession on Long Range Fiscal Planning from 1:06 p.m. to 3:51 p.m.

Recess from 1:52 p.m. 2:03 teleconference with Alaska Municipal League - Legislative Committee, until 2:38 p.m.

The Council's Committee of the Whole met from 4:05 p.m. to 5:28 p.m. regarding the Regular Meeting Agenda items.

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

STAFF: CITY MANAGER WREDE

CM ADMIN ASSISTANT LIVINGSTON

CITY CLERK CALHOUN

FINANCE DIRECTOR BAUGH

PUBLIC WORKS DIRECTOR MEYER

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

AGENDA APPROVAL

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

The agenda was approved by the consensus of the City Council with the following additions: Mayoral Proclamation for Police Memorial Day, May 12, 2004. Draft Long Range Fiscal Plan for the worksession and Resolution 04-45. Correction and clarification regarding packet page 30, page 2 of Ordinance 04-22, striking out Negotiating in Section 3 for clarity. Please Note: Section one states that "all references to the Lease Negotiating Committee will be amended to read Lease Committee". Addition of Memorandum 04-78 from Public Works Director as additional backup to Ord 04-24, Animal Shelter. Memorandum 04-78 was received after the supplemental packet was printed and distributed.

PUBLIC COMMENTS UPON MATTERS ALREADY ON THE AGENDA

Comments of the Public on any item except the three public hearing items. Ordinance 04-19,Expenditure of Homer Accelerated Water and Sewer Program (HAWSP) Funds for Kachemak Drive Phase One Sewer; Ordinance 04-20, Expenditure of Homer Accelerated Water and Sewer Program (HAWSP) Funds for Ocean Drive Loop Sewer; and Ordinance 04-21, Accepting and Appropriating a 2004 Seatbelt Enforcement Blitz Grant of up to $9,900.00.

Mary Donlin advised the Council that she was speaking on behalf of the group behind her, who responded with a show of hands and who were wearing Pink Poodle Lapel pins indicating their support for the construction of the new Animal Shelter. She addressed the difference in the estimated construction costs depicted in Memorandum 04-78, from $899,000.00 to $949,600 .00 and encouraged volunteer service to assist with making up the difference. She emphasized the community/volunteer support for the construction project and the willingness to do what needs to be done to bring this project to fruition. She exhorted volunteers to assist with demonstrating to the City their support of this project. Ms. Donlin shared her concerns and discontent with the substandard condition of the current Animal Shelter, urged the Council to not wait on this project, pointing out that it is not going to get cheaper. She thanked the Council for all of their hard work and that she would be available to answer any questions.

John Velsko objected to the proposal to ask the Department of Transportation (DOT) to lower the speed limit, adding that it is a terrible idea. He informed the Council that he contacted DOT and that they think it is not a very good idea. He stated that this will compress traffic and will positively result in signal lights at the intersections of Lake Street, Heath Street and Main street. He expressed his opinion that the traffic from Heath, Main and Lake Street will not have a chance to make a turn on to the Sterling Highway. He commented about the current traffic backing up behind motor homes coming off of the Spit and how that caravan snakes through town, clogging all the arterials. He emphasized that the DOT Traffic Engineer is aware of the rate/limits and that he hates to see the City loose credibility with DOT by asking them to do that without further study.

Ray Kranich addressed the Mayor and Council as a resident, advising that he has three items he wants to comment on. He urged the Council to keep the subject of Memorandum 04-75 confidential, that he saw on the agenda enough innuendoes and that what was said in the worksession today has given a lot of people the idea of the subject of the secret memo from the City Attorney. He voiced concern that releasing this memo would place the City in the position of biasing the election. He shared his support for the construction of the New Animal Shelter, Ordinance 04-24, that when he was on the Council he supported placing this project as a higher priority then the Library project, and as the number one priority. Mr. Kranich stated that he is not in favor of using the Special Project funds with a repayment schedule that unknown future Councils will have to appropriate year to year during the budget cycle. He stated that he cannot see anyone on this Council zeroing out the non profits next year to make the $52,000.00 payment. He voiced opposition to Resolution 04-46, lowering the speed limit on the Sterling Highway. He advised that he goes once a month to Eagle River for an Elks Youth Camp meeting, that the main drag through that town is 35 miles per hour, with cross walks and traffic lights. He noted that the traffic in Eagle River flows. He stated that he thinks this is taking a wrong approach, to lower the speed limit to 25. He suggested that if the appropriate controls are used the traffic will flow, and flow safely and efficiently.

Frank Griswold, resident, addressed the Council regarding Memorandum 04-75, release of the legal opinion, and commented that there appears to be some confusion about the ownership of confidential documents. He pointed out that Memorandum 04-75, from Councilmember Fenske, states that the Legal Opinion belongs to the Council and that the Homer News quoted the City Clerk as saying that the records belong go the public and that even the confidential ones belong to the public. He said that he would like to know who the legal opinion belongs to, under what authority it was deemed to be confidential in the first place and how the public can own a confidential document, but not be allowed to read it. He emphasized that if there is a legal authority it should have been cited in the memorandum. He shared his understanding and opinions with regard to Attorney Client privilege, general legal advise in person or in writing and executive session procedure. He suggested that if Attorney Tans had been present at a recent Council meeting this advice would have been broadcast on KBBI and reported in the local news papers. He noted that the City Attorney rarely makes appearances at Council meetings and stated that if keeping him out of town has anything to do with circumventing the Open Meetings Act, this should not be tolerated. He suggested that the Council obtain an opinion addressing the legality of obtaining general legal advice via confidential memo. He commented on Ordinance 04-25, increasing the retail wholesale size limits, that the whereas clauses justifying this Ordinance include the goals of facilitating long term diverse economic growth, promoting a healthy local economy, encouraging competition, encouraging business expansion and adding jobs to the community. Mr. Griswold stated that the confidential legal opinion to Councilmember Parks dated April 3, 1998 and released on April 10, 1998, suggests that these may not be legitimate zoning objectives. He told the Council that the issue at that time was a car wash on the Homer Bypass (Sterling Highway). He relayed information from the attorney opinion:

Case law indicates that fiscal zoning is irrelevant to the statutory purposes of zoning.

An increase in the tax base of a community as a primary justification for a rezone is totally violative.

Courts generally disapprove of the use of zoning to regulate or restrict business competition.

A zoning Ordinance that has as its apparent purpose the production of revenue at the expense of a community's general welfare will be invalid. While an Ordinance that has as its purpose the advancement of the community's general welfare will be valid even though it has a secondary effect of increasing the tax base or generating additional sales tax revenues.

In the most general terms a zoning Ordinance will be upheld if it has a tendency, reasonably, to serve the public health, safety or general welfare.

Mr. Griswold observed that it appears that this Ordinance is primarily designed to serve the Fred Meyer Corporation by acquiescing to its minimum building size requirements. He inquired where these new numbers came from, if this is not the true purpose, and what is wrong with the existing size limits. He asserted that Ordinance 04-11 does have the presumption of validity. He asked if there has been some significant change in conditions in Homer since the enactment of Ordinance 04-11. He voiced surprise that the City Code permits the Council to change a zoning Ordinance immediately after enacting it. He inquired if the Council is going to change it again after WalMart or Home Depot requests it? He charged the Council to not arbitrarily and capriciously amend the zoning code to fend off a pending and flawed ballot initiative, even if Ordinance 04-25 is seen as the lesser of two evils it should be voted down. He told the Council to deal with the ballot initiative on its own merits or lack thereof.

Al Waddell, resident, commented on the new Property Management Policy and Procedures, on page 60 of the packet, item 15.2 (b)Environmental Impact Insurance, $2 million, clean up policy and so on and so forth. He expressed his thought that this is great that the City is concerned, adding his concern with the location of the Hockey Rink not the building, but the upper part of the property. He noted page 60:

1. The City will determine on a case by case basis whether a lease of City property will involve a significant risk of environmental contamination due to the use of the property, the presence of hazardous materials or the location of the property.

2. If the City determines that a significant risk is present environmental insurance requirements shall apply.

He voiced his desire to see something placed on that situation and that he has cleaned land on that six acres, knows what is buried there, and that he knows what's there. He encouraged the Council to visit the site during the evening when there is no wind, to stand by the telephone post on HEA and that below that telephone post there is a yellow well, on the south side of Waddell Way. He suggested that if the Council uses their sniffer about once or twice and if they can tell him that they do not smell diesel fuel and unleaded gasoline there, then there is a problem since he smells it. He relayed the history of lighting the well when Hart Crowser came down to test the well. He voiced his opinion that the waste is encapsulated in that area right now and that he does not want it coming down on his property. He said that he was told that it is shrinking and that he would like to see an environmental report that shows him this and that he is extremely concerned with this. He commented on having signed a lease with Fred Meyer, that is pending on a certain size situation and that he has informed them that his property is clean, that he has showed them the paper work to prove the property was clean, that they did not take his word for it and sent a drill team to the property to check it out for themselves. He guaranteed that he would file a temporary restraining order the minute any of this comes down and that it will stick. He informed the Council that at 21 feet, on the HEA property, it is not just gasoline and hydro carbons it is solvents, the worst pollution that there is. He noted that he has City water and sewer, so he is not effected, except that the pollution turns one's property into zero value. He commented about the old Bare Foot Trailer Court wherein there are two great big piles with the black covers, all polluted soil. He shared his ten cents worth that the bordering property is also contaminated/polluted from diesel and suggested that this be tested extremely well. He voiced support for the new Animal Shelter project, advising that he used to have four pet shops; Pet Palace, Arctic Pet, Davey Jones Locker and a whole bunch of them. He stated that he likes animals and that they need to be taken care of appropriately. He stated that a building is a building is a building is a building, whether a hotel with 300 rooms or whatever. He objected to limitations, adding that if 20 more gift shops want to come to town they should come to town. He stated that he does not believe it is the Council's situation to limit business. He thanked the Council for their attention.

Robyn Smith, resident, emphasized the need for a new Animal Shelter and that the current facility is, basically, on the boarder of being inhumane. She advised the Council that she volunteers there and that she is there every Saturday and as often, other times, as she can be. She commented about animals coming in healthy that can, very well, get sick due to poor air ventilation, inability to keep things clean, that the facility is falling apart, and there is no proper storage. She apologized for the cost of the project and exhorted everyone to work together to get this done.

Eileen Faulkner, resident and President of Homer Animal Friends, added to Mary Donlin's comments that she would like to see and that Homer Animal Friends would like to see some sort of quality control inspector capable of overseeing the construction of the Animal Shelter. She reiterated comments about the need for a new Animal Shelter. She commented about traveling all over seas, having been to a ton of places and that places that do not even take care of animals, do take care of animals better than what Homer has at the current shelter. She urged the Council to find in their hearts, the funding, to make this new Shelter happen this year. She thanked the Council.

RECONSIDERATION

A. Memorandum 04-68, from City Clerk, Re: Councilmember Ladd's Notice of Reconsideration Re: Resolution 04-42, Of the City Council Determining, Pursuant to Homer City Code 17.04.030(d), that the East End Road Water and Sewer Improvements are Needed and Authorizing the City Clerk to Proceed with the Petitioning Process for said Improvements.

RECOMMENDATION: Move for reconsideration of the vote on Resolution 04-42 having voted in favor for the Resolution.

LADD/STARK - MOVED FOR THE ADOPTION OF MEMORANDUM 04-68 FOR RECONSIDERATION OF RESOLUTION 04-42.

There was no discussion.

VOTE: YES: NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

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 Yourkowski requested that Item I. be placed under New Business.

Councilmember Ladd requested that Ordinance 04-23 and Memorandum 04-75 be pulled off of the Consent Agenda and placed in the appropriate place on the agenda.

Councilmember Stark asked to pull off Memorandum 04-70 to be placed under New Business.

Memorandum 04-75 will be discussed prior to Ordinance 04-25.

A. Homer City Council unapproved meeting minutes of April 26, 2004 Regular Meeting. City Clerk. Recommend approval.

B. Ordinances 04-22, Of the City Council Amending Homer City Code Sections 18.08.020, Lease Negotiating Committee, 18.08.030, Approval of Lease and 18.08.100, Improvements. City Manager. City Clerk. Recommend adoption and conduct a Public Hearing on Tuesday, May 25, 2004, Second Reading on June 14, 2004.

C. Ordinance 04-23, Of the City Council Authorizing the Expenditure of Homer Accelerated Water and Sewer Program (HAWSP) Funds for the Surveying, Engineering, Design and Construction of Water and Sewer Service Improvements for the Homer Ice Arena/Multi Purpose Facility. City Manager. PWD. Fiscal Note: $96,000.00 from the HAWSP to the Project. Recommend introduction and conduct a Public Hearing and Second Reading on Tuesday, May 25, 2004.

Memorandum 04-77, from Public Works as backup.

Placed under Ordinances as Item C.

D. Resolution 04-44, Of the City Council of Homer, Alaska Supporting Raising the Total Funding for the Section 107 National Program to $56 Million and Moving the Maximum per Project Limit to $10 Million. Port and Harbor. City Manager. Recommend adoption.

E. Memorandum 04-69, from City Clerk, Re: Confirmation of Election Chairs, Judges and Officials for the June 15th Special Election. Recommend confirmation

F. Memorandum 04-70, from City Clerk, Noting that the Second Meeting in May is Tuesday, May 25, 2004, Pursuant to Resolution 03-148(A). Recommend affirmation.

Placed under New Business as Item A.

G. Memorandum 04-71, from City Clerk, Re: Right of Way Vacation - Tilly Court, a 60 foot right of way dedicated by Scenic View Subdivision No. 06 (Plat HM 82-47) and associated utility easements; within Section 16, Township 6 South , Range 13 West, Seward Meridian, Alaska; the City of Homer and within the Kenai Peninsula Borough; KPB File 2004-075. Recommend approval and non veto.

H. Memorandum 04 -72, from City Clerk, Re: Driveway Easement Vacation - Tract A-2 of Glacier View Subdivision No. 19 (Plat HM 86-107), within Section 20, Township 6 South, Range 13 West, Seward Meridian, Alaska; and within the City of Homer; KPB File 2004-096; KPBPC Resolution 2004-15. Recommend approval and non veto.

I. Memorandum 04-73 and 04-74, from Road Standard Committee through City Manager, Re: Suggestions to forward to DOT, Concerning Striping Plans for Bartlett Street, Pioneer Avenue, East End Road and Sterling Highway and Concerning the Traffic Study. Recommend approval.
Placed under New Business as Item B.

J. Memorandum 04-75, from Councilmember Fenske, Re: Release of Legal Opinion. Recommend approval.

Placed under Ordinances just prior to Item B.

NOVAK/FENSKE - MOVED FOR THE ADOPTION AND/OR APPROVAL OF THE RECOMMENDATIONS OF THE CONSENT AGENDA AS READ. (Without C., F., I., and J.)

There was no discussion.

VOTE: YES: NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

VISITORS

ANNOUNCEMENTS/PRESENTATIONS/BOROUGH REPORT/COMMISSION REPORTS

A. Mayoral Proclamation, Safe Boating Week, May 22 - 28, 2004.

B. Mayoral Proclamation, Policy Memorial Day, May 12, 2004.
Planning Commission Chair Chesley gave a Commission report: Bruce Hess is Vice Chair of the Planning Commission. There was a presentation from Mary Toll from the Kenai Peninsula Platting Office and that she shared some interesting statistics. Last year there were 300 subdivisions done, projections for 2004 suggest there will be close to 400 subdivisions and approximately 50% of these are from the Anchor Point area south. There were 34 subdivisions within the City of Homer in 2003.A worksession is scheduled before their next Planning Commission meeting to work on the non motorized transportation and trails plan with a public hearing during the Regular Meeting. The Commission is beginning a very concerted effort to get the steep slope ordinance up and running and that at the last meeting there was a review of the draft Ordinance. The City Planner will be providing a statement of the work for the EPA grant, which the Commission plans to have done by April 2005 the grant deadline, these grant monies provide for a consultant on steep slope matters. He suggested that Councilmembers interested in the steep slope issues meet with him. The Commission will be reviewing and revising the Subdivision Ordinance and intend to complete this process by early October. Mary Toll encouraged the Commission to revise sections of the Homer City Code so that it meshes better with the Kenai Peninsula Borough Code. He also encouraged input from the Council on the Subdivision Code. Mr. Chesley responded to the Council that once the Non Motorized Transportation and Trails plan is completed they will work on the Gateway Overlay.

PUBLIC HEARING(S)

A. Ordinance 04-19, Of the City Council Authorizing the Expenditure of Homer Accelerated Water and Sewer Program (HAWSP) Funds for Kachemak Drive Phase One Sewer. PWD. City Manager. Fiscal Note: Project No. 215-826: Estimated project cost is $644,800.00, total property owner assessments at 75%, $483,600.00 minus exemptions equals $384,400.00. Assessment per parcel: $12,400.00. (First Reading April 26, 2004, Public Hearing and Second Reading May 10, 2004.)

There was no public testimony.

YOURKOWSKI/BECK - MOVED FOR THE ADOPTION OF ORDINANCE 04-19 BY READING OF TITLE.

There was no discussion.

VOTE: YES: NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

B. Ordinance 04-20, Of the City Council Authorizing the Expenditure of Homer Accelerated Water and Sewer Program (HAWSP) Funds for Ocean Drive Loop Sewer. PWD. City Manager. Fiscal Note: Project No. 215-827: Estimated project cost: $890,098.00. Property owner assessments at 75%: $667,573.50. The City's share will be funded from the Homer Accelerated Water and Sewer Program. Assessment per parcel: $11,126.23 (First Reading April 26, 2004, Public Hearing and Second Reading May 10, 2004.)

Mayor Cushing excused himself from the table since he owns property in the district and handed the gavel to Mayor Pro Tempore Fenske.

There was no public testimony.

BECK/LADD - MOVED FOR THE APPROVAL OF ORDINANCE 04-20 BY READING OF TITLE.

There was no discussion.

VOTE: YES: NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

Mayor Cushing returned to the table.

C. Ordinance 04-21, Of the City Council of Homer, Alaska, Accepting and Appropriating a 2004 Seatbelt Enforcement Blitz Grant of up to $9,900.00 from the Alaska Department of Transportation and Public Facilities Highway Safety Grant and Authorizing the Chief of Police to Execute the Appropriate Documents. HPD. City Manager. Fiscal Note: Revenue ane Expenditures Accts: 151-781, Police Department Blitz Enforcement, $ 9,900.00 (First Reading April 26, 2004,Public Hearing and Second Reading May 10, 2004.)

There was no public testimony.

FENSKE/BECK - MOVED FOR THE ADOPTION OF ORDINANCE 04-21 BY READING OF TITLE

Councilmember Fenske suggested that it would be in everyone's best interest to buckle up.

VOTE: YES: NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

Mayor Cushing called for a recess at 7:58, reconvening the meeting at 8:06 p.m.

ORDINANCE(S)

A. Ordinance 04-24, Of the City Council Appropriating a Loan of $450,000.00 from the Special Projects Fund, Account 151-275, to Construct the New Homer Animal Shelter, That the Special Project Fund be Repaid at a Rate of $52,000.00 Per Year (Includes 3% Interest). City Manager. Fiscal Note: From 151-275, Special Project Fund of $450.000.00 to Expenditure Account 151-275, Homer Animal Shelter - Special Project Fund $900,000.00 Includes current budget amount of $450,000.00.(First Reading May 10, 2004, Public Hearing and Second Reading Tuesday, May 25, 2004.)

Memorandum 04-76, from City Manager as backup.

Memnorand04-78 from Public Works Director.

FENSKE/BECK - MOVED FOR THE ADOPTION OF ORDINANCE 04-21 BY READING OF TITLE.

City Manager Wrede advised that this funding scenario idea, as proposed in the Ordinance, came from Councilmember Stark: The appropriation from Special Project Fund 151-275 to be a loan to the Animal Shelter project of $450,000.00 to be repaid at a rate of $52,000.00 (includes 3% interest) annually for ten years beginning on January 1, 2005.

Council commended the idea as an incredibly creative solution to a huge problem. Council discussed the impact to future Councils who will have the option of not appropriating the reimbursement.

Memorandum 04-76 from the City Manager was discussed and specifically the options:

Benefits of Going Forward with the project: A great deal of momentum and enthusiasm has been building around this project. People in the community are starting to believe that a new shelter is possible and could actually happen. This is a chance to build upon that momentum. Volunteers are lining up to raise additional money, help with moving the shelter to a temporary location, and assist with construction of the new shelter. Costs will only go up. Moving forward now will send a signal to the community that the Council is serious about building a new shelter and addressing this long- standing need in the community. The cost estimate for this project provided by the architect is $900,000. As you know, the City has approximately $410,000 in the bank. We fully expect that fund raising efforts and grant receipts will raise that total to at least $450,000 before the end of the year. That means that the City will need an additional $450,000 to take this project to bid and commence construction this year if that is what the Council desires.

Option 1: Direct Appropriation / General Fund

The Council could simply make a direct appropriation from the General Fund. This would essentially amount to a capital construction grant. The funds could come from the existing fund balance and Council could compensate for this expenditure by reducing capital expenditures by a like amount in the upcoming FY 05 Operating Budget (or spread the reductions over several years). Upside: This option is quick and uncomplicated. The needed funds are secured and the project could be built this year. Downside: It would definitely have an adverse impact on the General Fund by squeezing operations, needed capital projects, and contributions to fleet reserves and depreciation. This option makes an existing problem worse.

Option 2: Direct Appropriation / Special Projects Fund

This option is essentially the same as Option 1 except that it makes a direct capital grant appropriation from the Special Projects Fund instead of the General Fund. Upside: This option is quick and uncomplicated and the funds are available. It has the added advantage of not impacting the General Fund. Downside: Some Council members have expressed reservations about using this fund to pay for a capital project like the animal shelter. This option taps further into the City's reserves.

Option 3: Sell Bonds

There has been a fair amount of discussion among the staff and supporters of both the animal shelter and library projects about whether to ask the voters to approve a bond sale for this project. Upside: the immediate impacts to the General Fund would be greatly reduced and the City would have the money in hand before it goes to bid and begins construction. Downside: The project would have to be delayed at least until next spring, it would increase the City's long-term debt, and the impacts upon the library project if both projects appear on the same ballot are unknown. Finally, $450,000 is a small amount to sell bonds for. A bond issuance of that size would generally be discouraged by financial institutions. It could be done by combining this with the library project and selling general capital construction bonds but, as noted above, that approach could create a whole separate set of concerns.

Option 4: Long Term, Low Interest Loan

Like the library, this project is eligible for a long term, low interest Community Facilities loan from USDA. Initial indications from USDA are that this project has a good chance of being approved. Under this option, the Council could "up-front" some money from either the General Fund or the Special Projects Fund to start construction now and repay itself with money from the loan. The loan repayment schedule could be structured in such a way that revenue from the new shelter could make the payments. (for example, a $450,000 loan on a 30 year repayment schedule at 4.375% would be $27,221.30 per year). Upside: The impacts to the General Fund are greatly reduced, potential impacts to the library project are greatly reduced, and the City would have the money secured that is needed. Downside: It would obligate animal shelter revenues and necessitate increased fees and/or other new sources of Shelter revenues. It could delay the project and it would increase long- term debt.

Option 5: The City Finances the Project (Loans Money to Itself). THE PREFERRED OPTION Under this option, the City would make a capital project construction loan using money from the Special Projects Fund. In essence, the City would loan money to itself. The money would be repaid to the Fund on a repayment schedule and interest rate approved by the Council. The payment would be budgeted every year in the General Fund Budget. Upside: The impact to the General Fund is reduced. The money is readily available, the needed funds are identified and the project can proceed. The City pays interest to the Special Projects Fund instead of a financial institution or the Federal Government. Downside: The City taps its reserves again and long-term debt is increased although, at terms and conditions much more favorable to the City.

Discussion ensued.

Public Works Director Meyer elucidated the architect's estimate and that the increase is due to the additional square footage the Council approved.

Discussion continued.

YES: NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

Interjected Consent Agenda Item J. Memorandum 04-75, from Councilmember Fenske, Re: Release of Legal Opinion. Recommend approval.

RECOMMENDATION: Recommend release of Legal Opinion.

FENSKE/YOURKOWSKI - MOVED FOR THE APPROVAL OF THE RECOMMENDATION OF MEMORANDUM 04-75.

Pros and cons were mentioned.

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

Motion carried.

B. Ordinance 04-25, Of the City Council Amending Homer City Code Sub Section 21.48.040(e)(1), Central Business District, Building Area and Dimensions - Retail and Wholesale - Size from 35,000 Square Feet to 42,000 Square Feet; Amending Homer City Code Sub Sections 21.49.040(e)(2)(3), General Commercial One, Building Area and Dimensions - Retail and Wholesale Size to 55,000 Square Feet and 25,000 Square Feet. Novak. (First Reading May 10, 2004, To Planning Commission for Public Hearing and Recommendation on May 19, 2004 and Council conduct a Public Hearing and Second Reading on Tuesday, May 25, 2004.)

NOVAK/FENSKE - MOVED TO INTRODUCE ORDINANCE 04-25.

The Ordinance proposal was discussed.

STARK/LADD - MOVED TO AMEND FROM 42,000 TO 45,000. (Central Business District.)

The amendment was discussed.

Mayor Cushing did not formally recognize the informal call for question by Councilmember Fenske.

VOTE:(primary amendment 1.) YES: LADD, STARK.

NO: NOVAK, BECK, FENSKE, YOURKOWSKI.

Motion failed.

Discussion ensued.

VOTE: (main motion) YES: NOVAK.

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

Motion failed.

C. Consent Agenda Item C. Ordinance 04-23, Of the City Council Authorizing the Expenditure of Homer Accelerated Water and Sewer Program (HAWSP) Funds for the Surveying, Engineering, Design and Construction of Water and Sewer Service Improvements for the Homer Ice Arena/Multi Purpose Facility. City Manager. PWD. Fiscal Note: $96,000.00 from the HAWSP to the Project. Recommend introduction and conduct a Public Hearing and Second Reading on Tuesday, May 25, 2004.

Memorandum 04-77, from Public Works as backup, with project map.

LADD/YOURKOWSKI - MOVED FOR THE ADOPTION OF ORDINANCE 04-23 BY READING OF TITLE.

City Manager Wrede responded to Council inquiry that there is not much property owner interest in an Local Improvement District (LID) right now, however, that discussion is continuing and that there are a number of variables to work out. This proposal is for the water and sewer to extend off of the Lake Street lines, as shown on the map, packet page 71. This project does not involve Waddell Way at all.

There were a couple of comments from the Council.

VOTE: YES: NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

CITY MANAGER'S REPORT

A. City Manager's Report (Updates/Followup; May Employee Anniversaries - Dan Cornelius P/H 26 years, Ruth Hall P/H 19 years, Michele McCandlish Finance 19 years, Kathy George Library 10 years, Sheri Hobbs Personnel 10 years, Jo Earls Finance 5 years, Jason Crockett HPD 2 years and Anne Marie Holen Admin 2 years ; Draft FY03 Audit/Year End Fund Balance; Peninsula Clarion Article/Borough Sales Tax Cap; Letter from Port and Harbor Director/Spit Crosswalks.)

1. Park and Recreation Commission Recommendation Re: Non Motorized Transportation and Trails Plan

2. Advisement from the ABC Board Re: Cosmic Kitchen Liquor License.

B. Game Report. (K- Bay Marines Detachment 838, Marine Corp League and Sons of the American Legion Squad #16, 2004.)

City Manager thanked Gail Teater and noted her retirement after twenty service filled years at the Homer Police Department. He commended Finance Director Baugh for his foresight with assumptions and predictions regarding the fund balance, 2003 audited figure $1,994,577.00. He advised the Council that he will fulfill his self proclaimed mission of locating the $7,000.00 for the stocking of the Fishin' Lagoon.

COMMITTEE REPORT

A. Road Standards Committee, April 20, 2004 Synopsis.

Councilmember and Committeemember Yourkowski encouraged the Council to pass the recommendations of the Committee. He announced the next meeting is Tuesday, May 11th at 6:30 p.m.

B. Town Center Development Committee. Next meeting is May 20 at 5:30 p.m. and 22, 2004 at 10 a.m.

This meeting has been changed to May 20th from 10 a.m. to 5 p.m., as of Tuesday morning, May 11th.

PENDING BUSINESS
None scheduled

NEW BUSINESS

A. Consent Agenda Item F. Memorandum 04-70, from City Clerk, Noting that the Second Meeting in May is Tuesday, May 25, 2004, Pursuant to Resolution 03-148(A). Recommend affirmation.

FENSKE/LADD - MOVED TO AFFIRM THE RECOMMENDATION OF MEMORANDUM 04-70.

Council discussed whether or not they needed to conduct the meeting on Tuesday. There was affirmation that some Councilmembers may want to attend Homer High Graduation on May 24th and that public attendance could be affected.

Mayor Cushing advised the Council that in prior years quite often there is a lack of attendance of Councilmembers and public due to the graduation.

VOTE: YES: NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

B. Consent Agenda Item I. Memorandum 04-73 and 04-74, from Road Standard Committee through City Manager, Re: Suggestions to forward to DOT, Concerning Striping Plans for Bartlett Street, Pioneer Avenue, East End Road and Sterling Highway and Concerning the Traffic Study. Recommend approval.

LADD/YOURKOWSKI - MOVED TO APPROVE THE RECOMMENDATIONS OF MEMORANDUM 04-73 AND 04-74.

Memorandum 04-73

The Roads Standard Committee has reviewed and discussed the Department of Transportation (DOT) Striping Plans for Bartlett Street, Pioneer Avenue, Sterling Highway and East End Road at the March 2nd, March 23rd and April 20th meetings. At the meeting of April 20, 2004, the committee took action to make the following formal recommendations to Council to forward to DOT:

East End Road

DOT place pedestrian crosswalks at the following roads - Mariner Drive, Sabrina, Rochelle, Scenic View, Adams Street and Clover Lane.

Access be provided for pedestrians between the crosswalk at the shoulder of the road and the detached pathway

The speed limit be standardized at 35 mph from Lake Street to Spencer Drive.

In the area between Lake Street and East Hill Road there be crosswalks and depressed curb at all intersecting streets.

Bartlett Street

That crosswalks and depressed curb and gutter be added on Bartlett Street at the Pioneer Avenue intersection and the East side of Bartlett Street at the Fairview Avenue Intersection.
Sterling Highway

DOT provide crosswalks on the North side of the Sterling Highway crossing Pioneer Avenue, Greatland Street, Main Street, Poopdeck Street, Heath Street and Waddell Way.

Memorandum 04-74

The Roads Standard Committee has reviewed and discussed the Department of Transportation (DOT) Striping Plans for Pioneer Avenue and the Sterling Highway. At the meeting of April 20, 2004, the committee took action to make the following formal recommendations to Council to forward to DOT:

That the DOT Traffic Study take into consideration the addition of bike lanes on the Sterling Highway, Pioneer Avenue and Lake Street by means of re-striping.

LADD/YOURKOWSKI - MOVED TO AMEND (MEMORANDUM 04-73) YES THAT DOT MEET WITH THE KENAI PENINSULA SCHOOL DISTRICT OFFICIALS TO ASSURE AND TO ARRIVE AT SAFE CROSSING AT EAST HILL ROAD AND EAST END ROAD AT PAUL BANKS SCHOOL.

Council expressed concerns regarding the crossing area of East Hill Road ane East End Road to Paul Banks Elementary School. It was suggested that the best place for the driveway is at the intersection. Council emphasized the importance of DOT discussing this with the school officials.

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

Motion carried.

YOURKOWSKI/BECK - MOVED TO AMEND MEMORANDUM 04-74 TO INSERT THE WORDS 'KACHEMAK DRIVE' AFTER STERLING HIGHWAY COMMA PUT KACHEMAK DRIVE COMMA..

That the DOT Traffic Study take into consideration the addition of bike lanes on the Sterling Highway, Kachemak Drive, Pioneer Avenue and Lake Street by means of re-striping.

The addition of Kachemak Drive was discussed. It was noted that this simply requests that DOT restripe Kachemak Drive to ten foot lanes with a four foot pedestrian bicycle lane on one side of the road, with the suggestion that the pathway be on the south side of the road to flow into the Spit Trail.

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

Motion carried.

NOVAK/FENSKE - MOVED TO AMEND THAT PIONEER AVENUE HAVE 10 FOOT LANES.

There was no discussion.

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

Motion carried.

There was no further discussion.

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

Motion carried.

RESOLUTIONS

A. Resolution 04-42, Of the City Council Determining, Pursuant to Homer City Code 17.04.030(d), that the East End Road Water and Sewer Improvements are Needed and Authorizing the City Clerk to Proceed with the Petitioning Process for said Improvements. PWD/City Clerk. Proposed Fiscal Note: Sewer - Total cost estimated is $303,911.79; 75% = $227,933.84; would be assessed against each of 11 parcels = $20,721.26, twenty year payment plan at 2.5% interest. Water- Total cost estimated is $334,719.27; 75% = $251,039.45 would be assessed against each of 16 parcels = $15,689.97, twenty year payment plan at 2.5% interest. Revote if Reconsideration is passed.

Memorandum 04-09(S), as previously submitted with other previously submitted backup information.

Reconsideration passed.

LADD/STARK - MOVED TO AMEND TO ADD AN BE IT FURTHER RESOLVED CLAUSE: THAT THE CITY OF HOMER AFFIRMS ITS POSITION NOT TO EXTEND ITS CITY WATER TO NON CITY PROPERTIES.

Concern was expressed regarding the importance of City residents receiving water and that there are a lot of City residents who are not currently connected to the City system. It was stated that Council does not want the implication that the Council is in the business of sending City water outside of City limits to properties, which are not City of Homer tax paying properties. Council expressed opinion that the costs seem a little high and questioned the reasonableness of the property owners being assessed for, what appears, as the entire cost of the trunk line. Trunk line size was discussed and is noted as being twelve inches.

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

Motion carried.

Public Works Director Meyer responded to Council question that a twelve inch trunk line does not double the cost and that there is some justification for, in the end when the project is done, the City to pick up oversizing costs. Oversizing costs are the cost of the pipe going from an eight inch to a twelve inch which could be $10.00 per linear foot. The majority of the cost of installing the pipe is the trenching, pretty much the same cost under either scenario. He pointed out that these assessments are in the ball park of the assessments from other areas, adding that the Hillside Acres assessments are higher and that these East End Road lots are some of the largest the City has run water and sewer to.

Discussion ensued along those lines.

Council discussed allowing people to connect on at a later date at the 75% property owner share amount. There may be additional individuals who want to connect that are adjacent to the benefitting property owners.

Discussion ensued specifically regarding deferral and grace periods.

NOVAK - MOVED TO AMEND TO STATE THAT WE WILL GIVE THEM SIX MONTHS TO FORM AN LID TO ACHIEVE THE TWENTY FIVE PERCENT CREDIT PLUS THE GOOD DISCOUNT RATE ON THE INTEREST AND AFTER THAT THEY WOULD JUST BE ASSESSED THE FULL RATE WHEN THEY DO DECIDE TO HOOK UP. SO THE INCENTIVE IS TO DO IT NOW.

This amendment was not recognized.

Mayor Cushing called for a recess at 10:14 p.m. at the City Clerk's request regarding the Code requirements on LID deadlines. He reconvened the meeting at 10:19 p.m.

Mayor Cushing clarified that the deadlines for the LIDs are set by Ordinance, however, Council sets the deadline on the final assessments and at that time the Council could extend this offer.

NOVAK/ - MOVED TO AMEND IF ASSESSMENT PASSES PROPERTY OWNERS WHO HAVE NOT JOINED CAN GAVE SIX MONTHS TO JOIN IN SAME FINANCING PROGRAM, AFTER THAT THEY WOULD HAVE TO PAY WHOLE THING.

This motion died for lack of a second and, simultaneously, was withdrawn.

Discussion ensued regarding the LID process and a deferred payment plan. Throughout the discussion it was noted, more than once, that the bubble area property owners, the newly annexed area along East End Road to the east of Kachemak Drive, have expressed desire for City utilities.

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

Motion carried.

B. Resolution 04-45(A), Of the City Council Accepting the Final Draft Long Range Fiscal Plan and Forwarding this to the Public for Input and to Public Hearing on May 25, 2004. City Manager.

STARK/BECK - MOVED FOR THE ADOPTION OF RESOLUTION 04-45 BY READING OF TITLE.

Council noted that there will be a lot of changes and this plan presents a lot of options. There are a lot of unknowns. This is a planning document and not cast in stone. These are fiscally challenging times. This is a draft, a working document and public review and input to the Council is desired. This plan will assist the Council in setting priorities.

City Manager Wrede read the revisions that Council discussed during the worksession today:

1. Appendix I and Appendix L. - provide list of assumptions and highlight so that people know what the assumptions behind these graphs and that these are worst case scenarios.

2. On all the list of options have a statement that says that these are not prioritized. Make it clear to the public that these are not prioritized.

3. Water utility outside the City limits, insert the words "by others". That we will encourage others to do that.

4. A general statement that non of the options are things the Council has made a commitment to do or that they are necessarily going to do, or be working on. That these are just options.

5. Something clarifying working with the State. Reaffirm our commitment to oppose the sales tax at the state level and to seek some help from the state on the PERS issue.

6. POMV included. Municipal sharing. 50/45/5 % split, the State version of the bill.

The word "final" was removed from the title and the Now Therefore Be It Resolved Clause. This was considered a typo and the Mayor did not read it in the title, upon which the motion was made.

Additional revisions:

7. That a spread sheet be added that demonstrates the four different sales tax options.

LADD/ - MOVED TO INSERT ON PAGE 16 (LONG RANGE FISCAL PLAN), WHERE IT SAYS THE CITY COULD LEASE MORE LAND, TO INCLUDE/INSERT OVERSLOPE PROPERTIES.

There was concurrence to add this as a revision. No second was required in the nature of Council's informal revisions. Item 8.

9. Formation of a new borough, south zone borough.

This was discussed and it was noted that the Long Range Fiscal Plan is a long range plan and that these are ONLY options.

10. Join or Merge rather than the word "Annexation". That this be tied to water and sewer being extended outside the City. That the Mayor wants to reverse the trend and that Homer becomes like the rest of America where people outside the City asked to get annexed. Encourage non City properties to petition annexation to the City through limiting City utilities and services to within City boundaries.

Council discussed the Annexation and that this be changed to "join the City". If City utilities are limited to Cit residents, this encourages those outside to join. It is quite simple, the idea is to make our community better and better and in doing that more people will want to join the City. There may come a time in the development of the City when it will not be in the best interest of the City to take in more property.

The draft water and sewer plan was mentioned and the desire of the Council to see this document prior to submission to them for approval.

Mayor Cushing affirmed to the City Manager that the Long Range Fiscal Plan be revised prior to being submitted to the public for review and comment.

11. Lease, fair market rent or higher than fair market rent. Add this to the section wherein the Overslope Property is being added.

Council discussed the possibility of incentives and tax breaks. There was no agreement to put this into the Long Range Fiscal Plan. Council desires to encourage business development.

Mayor Cushing suggested that the words "as discussed" be added after Draft Long Range Fiscal Plan in the Now Therefore Be It Resolved Clause.

There were no objections to this or to deleting the word final from the title or Now Therefore clause.

There was no further discussion.

VOTE: YES: NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

C. Resolution 04-46, Of the City Council of Homer, Alaska Requesting that the Alaska Department of Transportation and Public Facilities Reduce the Speed Limit on the Sterling Highway to 25 mph Between the Homer Middle School and its Intersection with Kachemak Drive. City Council.

STARK/FENSKE - MOVED FOR THE ADOPTION OF RESOLUTION 04-46 BY READING OF TITLE.

Council discussed the speed limit change. Pros and cons were discussed. John Velsko and Ray Kranich's comments were recalled. There was concern expressed regarding pedestrian crossing and tourist traffic.

NOVAK/LADD - MOVED TO CHANGE THE WORDING IN THE MOTION TO READ 30 MILES AN HOUR.

The amendment was discussed that 25 is too slow, that people usually go 5 miles faster than the speed limit, so 30 should work just fine. The speed limit should be tied in with design features that are meant to cause the traffic to go slower. It was suggested that this also be added into the resolution. Pros and cons were discussed.

VOTE:( primary amendment 1.) YES: LADD, STARK, NOVAK.

NO: YOURKOWSKI, BECK, FENSKE.

MAYOR: TIE VOTE: NO

Motion failed.

Council discussed the differences in speed now.

LADD/NOVAK - MOVED TO AMEND THAT WE ADD A GRADUATED 30, THE 25 TO 30 FROM MCDONALD'S TO KACHEMAK DRIVE INTERSECTION AND KEEP 25 FROM THE MIDDLE SCHOOL TO MCDONALD'S.

There was no discussion.

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

NO: STARK.

Motion carried.

There was no further discussion.

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

NO: STARK.

Motion carried.

Mayor Cushing ventured to say that if at the end of the summer Council finds for some reason that this does not work they can come back with a further suggestion.

D. Resolution 04-47, Of the City Council of Homer, Alaska Expressing Support for Borough Ordinance 2004-13; An Ordinance Amending KPB 5.18.430 by Raising the Borough Maximum Sales Tax Computation (Sales Tax Cap) From $500.00 to $1,000.00. Fiscal Note: It is estimated that raising the tax cap to $1,000 will increase revenue by $300,000.00. City Manager. Finance Director.

Adopted.

FENSKE/NOVAK - MOVED FOR THE ADOPTION OF RESOLUTION 04-47 BY READING OF TITLE.

Council commented that the cap may not be the best way to go; however, does address the Fishing Charter industry issue. This is a reasonable way to do some of the things, wherein the Council is trying to be fiscally responsible. Differential taxes were mentioned. This is one of the best ways to help the revenue problem in the City budget. Part of the blame for having to seek additional revenues for the City lies with the State fiscal situation and revenue sharing. Council pointed out that the City has not kept up with inflation regarding the sales tax cap and that if the City had kept up with inflation the cap would be raised to $1,802.00.

Mayor Cushing noted that there were no public comments on this matter this evening.

Mayor Cushing recognize the informal call for the question by Councilmember Novak.

VOTE: YES: NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

COMMENTS OF THE AUDIENCE

Audience comments upon any matter.

Mark Landwehr stated that he appreciates being here this evening and being allowed to speak, regarding Resolution 04-42 and that he finds this very interesting and that the proposals and ideas are dynamic and allow for flexibility. He posed a question to the Council about consideration being given to a bond as opposed to a loan. He suggested that if there is a plan where people can become a part of it in the future, hook up to this main artery it seems like this would create some sort of a crazy quilt or a patch work of doing this over here or that over there. He commented on doing things economically feasible. He expressed his opinion that bonding is the better way to go with the interest rates lower. He relayed his understanding that Homer water quality is marginal. He commented on the speed limit change on the Bypass, that this will affect him, that he lives right there and that people do not pay attention to the school speed zone. He voiced his opinion that any time the traffic is slowed it becomes more dangerous and bunches traffic. He commented on the suicide lane and suggested that one lane be worked on at a time. He said that he would not object to a traffic light, which is micro managing people and that he likes the idea of a round about. He commented on the amount of growth in Homer. He wondered how to make things safer.

Frank Griswold suggested that in considering the speed limits the Council may have failed to consider that ducks cross the Beluga Slough causeway and that they would appreciated a lower speed limit. He advised the Council that he did some math; take 25 mph, add 30 get 55, divide by 2 and get 27 1/2. He asserted that Ordinance 04-25 took on the appearance of a very tardy motion for reconsideration of Ordinance 04-11 and would have been insulting to the Planning Commission to have made them work so hard to establish size limits and then just throw a dart at the wall to establish limits. He voiced his hope that the Council would keep the 1998 opinion regarding legitimate zoning objectives close at hand for guidance on future zoning legislation. He stated that if the Council is acting within the bounds of the law they have nothing to fear in releasing general legal advice from the City Attorney and that doing so can also serve to avert litigation as the public would have a better understanding of the legal basis for their decision. He voiced his hope that this Council consults with the City Attorney and comes up with a policy on general legal advice and confidential documents. He said that he wonders why the City is going through all the great expense of a traditional special election instead of utilizing the cheaper mail in ballots special election and why have the mail in ballot alternative if it is not going to be used. He stated that it occurred to him that the money saved would by going to a mail in ballot may have been enough to stock the Fishin' Hole. He commented on the Mayor's proclamation on boating safety that may be a disservice to the community, that life jackets may save lives in mid America, but are largely ineffective in the cold waters of Alaska. He cited one exception, in the case of children who inadvertently fall over board and are quickly recovered. He voiced his opinion that life jackets create a false security and that it would be a far better proclamation to encourage the wearing of float coats and having on board functioning survival suits for every passenger. He stated that these provide warmth and delay the onset of hypothermia, which leads to death even if the drowning is delayed, especially in the case of a capsized or sunken vessel when immediate help is not available. He closed with a rhetorical question: Why is it that the more Homer expands to generate additional revenue the more additional revenue seems to be needed? He said good night.

Paul Rourke, resident, thanked the Council for working so hard all day, that he really appreciates the efforts of every single one of the Council. He addressed the Council regarding the Hillside Acres LID, that has been going on for two years. He reported receiving a letter of concern from Carey Meyer a couple of weeks ago saying that he has gone as far as he can with getting easements and that this is locked with about seven property owners who will not turn over an easement. He pointed out that the project is on hold. He voiced his opinion that this is not even Carey's job to be doing this, that he has been begging for a year now to get people, including Mr. Rourke's wife, to sign this over, thus giving them a certain amount of power over Carey Meyer. He stated that Carey Meyer is a marvelous engineer. He advised that he has talked to the City Manager and a number of Councilmembers. He stated that they are really stuck and that it appears there is not an easy method to gain those water and sewer easements. He urged the Council to do something in this regard so that in the future when property owners vote for a district it is done and that the easements have been secured. He emphasized that they do want sewer and water. He noted the comment about annexing people who want sewer and water, interjecting that if the Council can't get sewer and water in the City when the property owners voted for it then why would someone want to ask for sewer and water. He advised that he wants the service, that he has a brand new house with sewer and water that he has already paid for, but this is a community issue in that sewer systems in Homer do not last well. He informed the Council that there are two lots that have already subdivided in anticipation of this water and sewer district, which increases the City tax base. He thanked the Council.

COMMENTS OF THE CITY ATTORNEY

City Attorney Tans was not present.

COMMENTS OF THE CITY CLERK

City Clerk Calhoun reminded everyone that is a City resident and qualified to be sure that they are registered to vote by this weekend to be able to vote in the June 15th special election.

COMMENTS OF THE CITY MANAGER

City Manager Wrede thanked the Council for all of their work on the Long Range Fiscal Plan. He apprized the Council of the problems with securing about seven necessary easements in the Hillside Acres Water and Sewer Assessment District. He reported that he and City Clerk Calhoun discussed the election process for the Special Election decided to use the regular process since there is often a better turn out then a mail out election and that, due to the sensitive nature of this ballot issue, it would be a good course of action to follow the regular process.

COMMENTS OF THE MAYOR

Mayor Cushing thanked all the folks who participated in the great college graduation, and questioning the president of UAA and the Governor. He noted the subsequent vote the next day of the legislature appropriating an additional 3/4 of a million dollars for the campus expansion. He congratulated all for another great shore bird and wooden boat festival this past weekend. He commended the Council for covering a great deal of ground tonight, philosophically, and that this was done in a manner that the City Manager can put it into a document.

COMMENTS OF THE CITY COUNCIL
Councilmember Stark shared his experience in utility easements for over 40 years and that he knows the City abhors the use of eminent domain, yet this situation, referring to Hillside Acres Water and Sewer, has evolved to such an extent that, without knowing as much about it as Mr. Rourke or Mr. Wrede, offering some money should be considered and 20 days later go to court and ask for an order of immediate possession.

Councilmember Novak, in deference to Frank's ducks, he wanted to say that he really did come up with that number in a way that was little bit more involved than just counting the number of ducks there were in Beluga Lake. He emphasized that, the fact of the matter is, he attempted to offer a responsible and reasonable number for the community to consider, to have something on the table that the Council could go with, that was reasonable to manage the growth in this community and to maintain a level playing field. He expressed his opinion that the number was responsible to the community and a good fit for the community. He voiced appreciation for everyone's consideration of the idea.

Councilmember Fenske commented about "Mr. Rourke being right out his kitchen window" about 200 feet away. He advised the Council that he bought about 1400 feet of garden hose to go down to the bottom of the canyon and up the other side to hook onto his hose bib as soon as he gets water.

ADJOURNMENT

There being no further business to come before the Council the meeting was adjourned at 1153.m. The next Regular Meeting is scheduled for Tuesday, May 25, 2004 at 7 p.m. The next Committee of the Whole meeting, scheduled for Tuesday, May 25, 2004 at 4 p.m. All meetings scheduled to be held in the Homer City Hall Council Chambers located at 491 E. Pioneer Avenue, Homer, Alaska.

_____________________________________

MARY L. CALHOUN, CMC, CITY CLERK

Approved: _______________

clerk@ci.homer.ak.us, 235-3130, home number 235-2843.