Session 03-11, a Regular Meeting of the Homer City Council was called to order at 7:30 p.m. by Mayor Jack Cushing at the Homer City Hall Council Chambers located at 491 E Pioneer Avenue, Homer, Alaska, and opened with the Pledge of Allegiance.

The Council met as a Committee of the Whole from 4:01 p.m. to5:59 p.m. Items discussed were the priority list submitted May 12th via Memo 03-79, with the Mayor's suggestions and the Regular Meeting Agenda Items.

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

STAFF: CITY MANAGER WREDE

CITY CLERK CALHOUN

LIBRARY DIRECTOR HILL

AGENDA APPROVAL

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

The agenda was approved by consensus of the Council. Correction on page 22, Request from staff to delete Resolution 03-75 and Memorandum 03-85, Resolution 03-76 addition to the now therefore and fiscal note, Substitute Ordinance 03-33(S), correction of typo, Letter from Dr. Marley as testimony on Ordinance 03-25, KPHI Steve Rouse Letter to go with Resolution 03-74 and the Executive Session Request and New Business Item were deleted from the agenda as recommended by staff.

PUBLIC COMMENTS UPON MATTERS ALREADY ON THE AGENDA

PUBLIC COMMENTS UPON ANY MATTER ON THE AGENDA with the exclusion of Visitor, and public hearing items Ordinance 03-23(A), Enforcement of Zoning Code Violations, Ordinance 03-25, to Limit the Size and Dimensions of Buildings Used Primarily For Retail or Wholesale Business, Ordinance 03-27, Accepting and Appropriating a Coastal Impact Assistance Program (CIAP) Grant in the Amount of $75,000.00, Ordinance 03-28, continuation of the Local Bidder Preference, and Ordinance 03-29(A) and 03-29(S), Improvement Districts--Formation and Assessment.

Lynda Reed thanked the Council for their consideration of Resolution 03-76 on the Consent Agenda, to change the DOT sign on the Sterling Highway before Pioneer Avenue to make it a little more appropriate and informational as to what is going on, on Pioneer Avenue. She encouraged the Council to consider in the future, soon, even more artistic signs that could be at Pioneer Avenue, Main Street and Lake Street that might say, "The Heart of Homer", and with a little more information about what is in Homer for the first time visitors, so that they will all know what Homer has to offer. She offered to come up with a nice design if the Council is open to that, which would be great and encouraged everyone to be sure and go to the Chamber of Commerce and see all the wonderful board and design ideas that the students developed.

Ken Castner voiced agreement with the scheduling of the City Manager's evaluation for June. Sharing his opinion that the Manager needs to be encouraged to organize his day better and that his open door policy, although great, is too open. He interjected that this starts with the Councilmembers who spend a lot of time in the Manager's Office as well. There is a huge amount of work piled up on the City's plate, some action has to happen and this starts with the Manager's Office. He suggested that this be one of the topics of his evaluation. He commented, in kind of an oblique way about the Library, that he took part in the excellent program that the Chamber of Commerce put on last week with the students from the University of Washington. The plans that the students presented were pretty much contained within the study area that they were given, westward of where the Library is currently proposed to be located. The students did a very thorough and good job of evaluating the town's needs and how it needs to develop. Mr. Castner commented that it occurred to him that since the students were not given the area to the east, that two of the plans pretty much looked like that strip, except it is to the west and there is development on Pioneer and down below with the creation of a new strip that kind of went from the Poopdeck area over toward the Main Street development where it got short stopped. He suggested that it is kind of ironic with people suggesting all the possibilities for the undeveloped land, but when the land gets developed it will look just like what is just to the east of it, although a little wider, but no more doable. He commented on the Manager's introduction at the Chamber of Commerce session/forum with the students, and that the Manager had said that this is great and to just do it. Mr. Castner emphasized that for ten million bucks this can be done, build a new City Hall, new Library and put in all the roads and infrastructure and develop the whole thing, adding that Council will have to sell the bond.

Steve Rouse, Director of the Kenai Peninsula Housing Initiative (KPHI), spoke in favor of Resolution 03-74, interjecting that he came to the Council about five weeks ago asking Council to consider this proposal. He thanked Councilmember Fenske for bringing this forward. He reported, in response to previous Council inquiry, that the KPHI is capable and willing to pay property tax and that there is no impediment as a non profit to pay taxes and to pay utilities. He further reported that KPHI has investigated other site selection opportunities and possibilities and have not been able to identify anything. He advised that the Mental Health Trust Authority has stated that they never buy property for any one individual project. He stated that KPHI is working with the Alaska Housing Finance Corporation and that all indications are that KPHI will be successful in acquiring the necessary construction funds to build this forty five hundred to six thousand square foot facility, valued at eight hundred thousand to one million dollars, which will equate to a significant amount of property taxes. He addressed the stream bank issue and that there will be the need for some mitigation and stabilization work, adding that he contacted the Corp of Engineers (COE), who are willing to work with KPHI. He pointed out that this will enhance the value of this parcel on the corner of Mattox and East Road as well as the lower lot to the south. He thanked the Council for this Resolution, that KPHI looks forward to an open and complete discussion tonight or in the future through public hearing to move forward as expeditiously as possible. He advised the Council that KPHI is facing a time line crunch with respect to being able to apply for and secure grants. In response to the Mayor he advised that they have to identify site selection and acquisition by the end of June. He acknowledged that this may not come to an Ordinance vote until June 9th or 23rd.

Chris Laing, Community Mental Health Center, commented on Resolution 03-74 and that the lack of affordable housing in Homer is a serious and huge issue, especially to those who are homeless in the community. She informed the Council that she has been a member of the Alaska Coalition for the Homeless for a number of years. The Homer Coalition for the Homeless is a group of people that have been meeting since 1996 and includes Share the Spirit, churches, Independent Living Center and other social service agencies such as Home Health and the Community Mental Health Center to try to look at what can be done about the homeless. No one in the City has responsibility for looking into how to provide housing for people of low income. It is a complex problem to solve. Communities that recognize this as an issue within their community are able to secure financial backing for construction, for operations, for management of all kinds of different options. These can be anything from apartments to supportive living kinds of things, depending on what the community sees as the greatest need and what the community supports. Homer has a need in a variety of areas; homeless teens, individuals with mental health issues, and individuals that are developmentally disabled who are in need of affordable housing. It took about five years to form the KPHI and to be federally recognized, which puts KPHI in the position to be able to leverage funds, if the City of Homer shows support. The donation of land is significant, the donation of anything that shows the City supports addressing this issue is significant in acquiring funding such as from HUD, to match with AHFC funds.

Susan Drathman, Manager of the Pride Program, commented that the Pride Program works with the developmentally disabled and that the program provides home and community based services. These individuals are one of the user groups that could be eligible to reside in this housing program. She voiced her support of Resolution 03-74 and asked the Council to recognize that this Resolution does address Homer's need to promote a healthy community. This is an exciting opportunity to be able to offer options to folks with a developmental disability so they can continue to live in Homer near family, friends and stay in the area where they grew up. This opportunity also creates employment for people who live in Homer, because it allows them to work along side of people in the Pride Program to help them live more independently, to remain in Homer, get a job and contribute to the community. This seems like a win win situation for all, additional tax base and most importantly creates a whole different kind of living environment for people who formerly had to go to institutions. In response to Councilmember Fenske, Mrs. Drathman advised that Community Mental Health and the KPHI are two separate organizations and entities and that there are some Community Mental Health staff that volunteer their time on the KPHI Board.

Jean Steele voiced support of affordable housing represented by the proposal of Resolution 03-74. She shared her hope that this is just a door that is opening for people with disabilities to be able to have affordable housing and be part of the community and not have to be some place else. She noted that a great many disabled people have a lot of talent, they are smart, and funny, but cannot make a full time living. Affordable housing is a real necessity. The other programs are way behind and have waiting lists that go on forever. She stated that Homer is a generous and giving community, always has been, and that this is why she moved here. She urged the Council to support this Resolution and voiced her hope that this is the beginning of a partnership of the City of Homer showing its interest in its residents and in so doing creates a momentum. This is something that will enhance the City of Homer, adding that she likes the job part as well.

Jared Szajkowski, Library Advisory Board (LAB) Student Representative, commented in favor of the Hazel Avenue Site, eight City lots, for the new library, Resolution 03-72. He commented about living in Homer almost all of his life and that as far back as he can remember, kindergarten or maybe first grade, Homer has been in need of a new Library. He emphasized that this site provides pedestrian access and equal access for all the schools, which is important since most of the students don't drive.

Cleo Web, Friends of the Library since 1979, noted that they have worked long and hard for a new library, and that she would like to see the new library built in her lifetime. If this project does not get moving it will not be built in her life time, which would break her heart. The site is a big important step to move forward with funding. She commented that the project has been on a roll that seems to be slowing due to not having a site. She encouraged the Council to adopt Resolution 03-72 to give to the Library the eight lots on Hazel and Heath Street, the lots that the Friends and the Library Advisory Board have agreed with. The university property would be lovely, but would mean a delay of unknown length and the university would be in favor of the university and not necessarily the library.

Sue Mauger introduced herself as a Library user, Friend of the Library and member on the Library Advisory Board so that the Council would know of her level of commitment to the Library. She asked the Council for their commitment to the project by taking the next step. She commented on the latest events in the Nation, State and Community, that she, like many people in uncertain times, seek out knowledge and information about cultures, religions and perspectives that there is little exposure to. She said, that like many people, she feels powerless to effect change. She encouraged the Council to support the library, which is a place that is dedicated to providing opportunities for learning, for deeper understanding and for exploring new ideas. This is a very powerful step for the community to make. Libraries ensure freedom of knowledge. She commented about the debate on the site location for the library, that the library will reflect the spirit of Homer and provide a community center with visions for a performing arts center, cabins in the woods and pedestrian trails, which are very enticing. What is important about a library is not what block it is on, but what is in it and the sooner there is a bigger library the sooner exposure to new ideas and knowledge will happen. She stated that she stands behind the recommendation from the Library Advisory Board and encouraged the Council to select the eight lots on Hazel Street.

Pat Evarts voiced dissatisfaction with two items on the Consent Agenda having blanks, Ordinance 03-32 and Resolution 03-75.

She was advised that Resolution 03-75 had been pulled off the Agenda and that Ordinance 03-32 has a blank, due to the unknowns with the Animal Shelter.

RECONSIDERATION

CONSENT AGENDA

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

Ordinances 03-32 and 03-33 were placed under Ordinances and Resolution 03-76 was placed under Resolutions at the request of Councilmember Fenske.

Resolution 03-79 was placed under Resolutions and Memorandum 03-87 was placed under New Business at the request of Councilmember Ladd.

Memorandum 03-75 was placed under New Business at the request of Councilmember Yourkowski.

A. Homer City Council unapproved meeting minutes of May 12, 2003 Regular Meeting. Recommend approval.

B. Ordinance 03-30, Of the Homer City Council Amending Homer City Code Section 21.28.010, Title for Citation-- Jurisdiction, to Include Reference to the Bridge Creek Watershed Protection District. Clarifying Ordinance. City Clerk in consultation with City Attorney and Acting City Planner. Recommend Introduction and conduct Public Hearing and Second Reading on June 9, 2003.

C. Ordinance 03-31, Of the City Council of Homer, Alaska, Accepting and Appropriating a Reimbursement Grant of $6,605.00 from the Alaska Department of Transportation and Public Facilities Division of Measurements and Standards/Commercial Vehicle Enforcement and Authorizing the City Manager to Execute the Appropriate Documents. HPD. City Manager. Fiscal Note: Revenue and Expenditure Acct. 151-731, Commercial Vehicle Inspections. Recommend Introduction and conduct Public Hearing and Second Reading on June 9, 2003.

Memorandum 03-84, from HPD as backup.

D. Ordinance 03-32, Of the City Council of Homer, Appropriating $ from the Animal Shelter Account to Formalize the Plan for Construction and Authorizing the City Manager to Execute the Appropriate Documents. Fenske. Fiscal Note: Acct. 151-728, amount not identified. Recommend Introduction and conduct Public Hearing June 9, 2003 and Second Reading on June 23, 2003.

Placed under Ordinances as Item B.

E. Substitute approved under Agenda Approval. Ordinance 03-33(S), Of the City of Homer Extending Section 1 (A, B, C, AND D), Section 2 and Section 3 of Ordinance 02-53(S)(A) for a Period of Six Months, and During this Time Frame the Planning Commission will Submit and the City Council will Act Upon a Proposed Ordinance Containing Criteria Standards for the Site Development, Utilities and Services, Environmental, Community, and Fiscal Impacts used to Assist in the Development and Assessment of Large Retail and Wholesale Structures. Ladd. Recommend Introduction and conduct Public Hearing and Second Reading on June 9, 2003.

Placed under Ordinances as Item C.

F. Staff requested deletion under Agenda Approval. Resolution 03-75, Of the City Council of Homer, Alaska Awarding the Professional Planning and Engineering Services Contract for a Water and Sewer Master Plan to the Firm of _________of ___________, _______in the Amount of $ and Authorizing the City Manager to Execute the Appropriate Documents. PWD. City Clerk. Recommend adoption.

Staff requested deletion under Agenda Approval Memorandum 03-85, from Public Works as backup. Memo and substitute will be submitted by meeting time.

G. Resolution 03-76, Of the City Council of Homer, Alaska in Support of the City of Homer Application to the Alaska Department of Transportation and Public Facilities (DOT/PF) for Tourist Oriented Directional Signage in the DOT/PF Right-of-Ways at the Intersection Areas where the Sterling Highway Intersects Pioneer Avenue, Main Street, Lake Street and Ocean Drive/Homer Spit Road, and at the Pioneer Avenue/Lake Street/East End Road Intersection and that the Signage Indicate the Type of Businesses/Services and Authorizing the City Manager to Execute the Appropriate Documents. Mayor. Fiscal Note: Acct. 100.5227.101, Clerk's Advertising budget estimated cost $!80 each, five signs, with City installation. Recommend adoption.

Placed Under Resolutions as Item D.

H. Resolution 03-77, Of the City Council of the City of Homer Requesting Certain Transportation Planning and Infrastructure Enhancements from the Alaska Department of Transportation and Public Facilities. City Manager. City Council Recommend adoption.

I. Resolution 03-78, Of the City Council of Homer, Alaska Concerning Participation in the National Flood Insurance Program. City Manager. Planning. Recommend adoption.

J. Resolution 03-79, Of the Homer City Authorizing the Renaming of the Junior Field, Located at Karen Hornaday Hillside Park as the Michael L. Daugherty Baseball Field. Kranich. Recommend adoption.

Placed under Resolutions as item E.

K. Resolution 03-80, Of the Homer City Council Amending the Homer Accelerated Water and Sewer Program (HAWSP) Incorporating Recent Activity by the City Council and Staff and Deleting Methodology from Qualifying Criteria and Placing it Under Financing and Assessments. City Clerk. Recommend adoption.

L. Resolution 03-81, Of the City Council Amending the Council's Operating Manual to Clarify the Regular Meeting Agenda Process. Mayor. City Clerk. Recommend adoption.

M. Memorandum 03-75, from Finance Director, Re: Fish Factory, LLC Lease. Fiscal Note: Revenue: 100.4650.035. Recommend approval.

Placed under New Business as Item C

N. Memorandum 03-78, from Mayor, Re: Appointment of Don Henry to the Public Arts Committee. Recommend approval and appointment.

O. Memorandum 03-86, from City Clerk, Re: Request for Executive Session pursuant to AS §44.62.310(c)(1), Matters the immediate knowledge of which would clearly have an adverse effect upon the finances of the public entity. (Ocean Drive Loop Bluff Erosion Control Project) Recommend approval and conduct under New Business as Item A.)

Deleted

P. Memorandum 03-87, from City Manager, Re: City Planning Function. Recommend approval.

Moved to New Business as Item D.

Q. Memorandum 03-88, from City Manager, Re: House Numbering/Annexed Area. Recommend approval.

STARK/BECK - MOVED FOR THE ADOPTION AND/OR APPROVAL OF THE RECOMMENDATIONS OF THE CONSENT AGENDA.

VOTE: (Excluding Items C. D. G.. J. M. P.) YES: NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

Councilmember Stark asked that the renumbering take place between April 1 and October 1.

Mayor Cushing called for a recess at 8:12 p.m. reconvening the meeting at 8:19 p.m.

VISITORS

A. Tom Gibbons, Fred Meyer Representative.

Mr. Gibbons made an overhead presentation and distributed written information:

Fred Meyer was the Pioneer of One - Stop Shopping

1922 Opened unique food store in Portland, Oregon.

1931 Opened first suburban store with general merchandise and apparel added to groceries to pioneer one stop shopping.

1959 Opened first store in Washington.

1975 Expanded into Alaska.

1984 Added stores in Idaho and Utah.

2003 Today operates 134 stores in five western states.

Investing in Alaska

First Alaska Store opened in Anchorage in 1975.

Today has 10 stores in Alaska

2,500 employees

More than $60 million a year in wages and benefits paid

Employees who work an average of 80 hours per month receive full benefits

More than $2 million a year in local property taxes

Sales taxes support local municipalities

11th Fred Meyer Store opens in Palmer 2004

$143 million invested in six new stores since 1990

$80 million invested in five major remodels and other site improvements since 1990

Commitment to Community

The Fred Meyer Foundation

Foundation established in 1998

Since the, donated more than $240,000 to 98 organizations in Alaska

Store employees serve on advisory committees to help direct local donations

Corporate charitable donations

Employee volunteer projects

Store activities

Sponsorships

Corporate donations

At grand openings

Chugiak-Eagle River Fred Meyer Store

Eagle River Food Pantry

Eight Local schools - K through 12

Lower Hillside Fred Meyer Store

Anchorage Parks and Recreation

Wasilla Fred Meyer Store

MatSu Alternative School of Wasilla

Valley Community Theater

Additional donations and activities

More than $92,000 in corporate donations to 14 Alaska organizations in 2002

19 charitable groups used Fred Meyer entrances on 93 weekends

Examples of recent sponsorship commitments in Alaska

Homer Halibut Derby

Kenai River Classic

Iditarod

Bean's Café - Beans and Jeans Ball

Bear Paw Festival

Wasilla Clean Up Day

MatSu Miners Basball

Opportunities for Local Business

Anchor downtown development

Ellensburg, Washington (showed picture of store and details)

Redmond, Oregon (showed picture of store)

Portland, Oregon (showed picture of store - Northwest Best Fred Meyer)

Sumner, Washington and Palmer, Alaska (showed picture of store)

Palmer store layout 72,000 square feet

Magnet to attract customers who were shopping elsewhere

Chugiak - Eagle River

Wasilla

Soldotna

Community outreach

Strive to collaborate with local municipalities

Hold open houses for community input

Create store designs to reflect local styles and interests

Store Formats

Full size Fred Meyer Multi department Store

Two formats of 140,000 and 170,000 square feet

Food departments average about 66,000 square feet

Small Marketplace Store

Focus on food

Most range from 60,000 to 100,000 square feet.

Fred Meyer Food Store Planned for Homer

Not enough room to carry much more than groceries

Primarily competes with two other grocery chains

Increased competition helps customer

more product choices

lower prices

Homer layout 40,000 square feet

ANNOUNCEMENTS/PRESENTATIONS/BOROUGH REPORT/COMMISSION REPORTS

A. Mayoral Proclamation, Safe Boating week May 17-23, 2003.

B. Certificate of Appreciation to the City of Homer for Contribution to the Late Silver Stock for the Fishin' Hole, 2003, from the Alaska Department of Fish and Game and the South Peninsula Sportsmen Association.

Representative Seaton reported on the final legislative activities and that this session had been very interesting. He thanked the Council, Mayor and City Manager for the expeditious return of Resolutions, letters and phone calls and that with things happening so fast in Juneau they really needed backup on many items. He emphasized that for some reason the culture in Juneau this year was economic development, which was great, but what sort of got incorporated into that was something like overriding local authorities. There were a number of real challenges so the Council's feed back was very instrumental in helping to stop some of those efforts that would have overridden the City's planning and zoning authority. He reported that in the most part they were successful right down to as far as the sales tax. He advised that the original sales tax went through the Ways and Means right up until the end and that there were three or four of them who finally put their foot down and said that there had to be a way so that this did not interfere with the local governments' ability to set their own caps, exemptions and those types of things. He elaborated on the implications of the original sales tax bill, the five thousand dollar sales tax cap, impact on purchases such as automobiles, the two year phase in and etcetera. He informed the Council that he worked really hard on the City's capital budget, but that he is not sure that it will make any difference the way things are ending up. Since there is no additional revenue generated and with the imbalance in the budget Governor Murkowski is probably looking at cutting an additional one hundred thirty million dollars that is additional to the change from last year's budget. The Governor's proposed an almost two hundred million dollar cut on top of the additional one hundred and thirty million dollars that will probably take out most of the capital projects. He suggested that everyone hold on to their seat belts. Most of the legislators went to Juneau with a "no tax" and a "cutting" pledge so in the end there were not enough votes in either the House or the Senate to come forward with any significant revenue increase. The report shows twenty two million in Municipal Revenue Sharing cuts, nine million in health and social services state wide grants and significant cuts, elimination of the longevity bonus program and pupil transportation, which will really hurt with the proposed cut of four and one half million dollars. Representative Seaton relayed his concern and worry with what is going to happen and that a lot will be heard from constituents and hoped that by next year they can come together with some integrated way of raising revenues to balance the state budget to still provide services to all the residents. He agreed that it is not good news he is bringing, however, believes that there is a pretty good package of capital projects the Homer area; corrosion, waste water, fire service area. He reported that there is some aide for fisheries to allow fishermen to get their catches more economically and in better quality and for the Homer Mercury Classic to provide a funding source for the Boys and Girls Club. He reported that the Homer Office will be open this next week and Cameron Yourkowski will be staffing that office.

Mayor Cushing thanked Craig Forest, USCG Auxiliary, for all of his efforts on Safe Boating and for his volunteerism. He encouraged safe boating practices.

PUBLIC HEARING(S)

A. Ordinance 03-23(A), Amending Homer City Code Chapter 21.30 to Make Provisions for Enforcement of Zoning Code Violations. Planning Commission. (First Reading 04/28/03, Public Hearings 05/12/03 and 05/27/03, Second Reading for 06/09/03.).

There was no public testimony.

B. Ordinance 03-25, Amending the Homer Zoning Code to Limit the Size and Dimensions of Buildings Used Primarily For Retail or Wholesale Business. City Council. Planning Commission. (First Reading 04/28/03, Public Hearings 05/12/03 and 05/27/03, Second Reading for 06/09/03 will be postponed if there is not a full Council.).

B1. Ordinance 03-25(S) was submitted by the Planning Department on behalf of the Planning Commission. Copies were made available for the public at the back information table in the Council Chambers during Committee of the Whole. (This was not a recognized lay down, but was provided to the public for review and comment.)

Councilmember Ladd elucidated the changes in the Substitute from the Planning Commission:

CBD linear length of building in width was changed from three hundred feet to two hundred feet.

GC1, south of Kachemak Drive, instead of building area it is floor space, with the rationale that this is real close to a residential area.

Remaining areas of GC1 and GC2 are set at forty thousand square feet of area.

There is another area in town, not yet zoned, at the top of the Hill that area set at eight thousand square feet and upon being zoned will revert to whatever is required for that particular zone.

Tom Laing voiced support of the twenty thousand square foot cap in the CBD and the other dimensions, from his brief reading, looks pretty good. He commented being sure that Fred Meyer would be a good corporate neighbor, but does not believe any more corporate neighbors are needed of that size.

Pete Roberts noted that he has no investment in this issue, that he is in the house design and landscape design business. He testified that much more important than the twenty thousand square feet, or three hundred or two hundred and fifty feet is how the place fits in the environment and wondered how one legislates or makes ordinance for that. He voiced his opinion, like with Fred Meyer, that the square footage is an artificial thing and urged the Council to think about this a little more deeply. Though no architectural gem, the Kachemak Center fits into Alaskan Gothic and is fifty thousand square feet on two levels. He noted that some one hundred thousand square foot buildings could be preferable to twenty thousand square feet depending on perspective, attractive surrounding and et cetera. He reminisced about twenty years ago when Toby Tyler looked at Main Street (Pioneer Avenue) and did watercolors of every significant building thereon in a kind of mining town frontier western town theme with false fronted facade porches. Now, all of a sudden this is a town of porches. Toby did this because he has some view of what's going on, not only relative to living here but bringing people in here and making this a really attractive town. Homer has the most beautiful fiord, there are not three in the world like it. Homer has magnificent mountains that are like a comb and keep the maritime weather out of here, creating an almost arid and pleasant climate. Behind Homer is gentle upland sedimentary slopes and hills that are delightful. There is not another place in Alaska anything like this. The climate is more like 45 degrees north. What Toby Tyler was presenting was to make Homer physically attractive as a town. He relayed that Homer is kind of "butt ugly". It is far better than it was thirty years ago and a number of things could be done. Save-U-More is not a bad building, although it is facing the wrong direction. The Bypass was promised as a Bypass and through back room dealings was made another service street. He urged the Council to have some vision for the future, to look forward and suggested a bond issue to purchase the CIRI property. The land scape students from Washington did a magnificent job and had only one cockamamie idea. He asked that Council to remember that fifty six percent of the people, the silent majority, who answered the questionnaire were in favor of the large store, regardless of how many people have testified the opposite. A building of fifty thousand square feet on two levels with a solarium or outdoor restaurant would look great at the bottom of West Hill Road or in Nordby Field. State DOT is so messed up that they cannot plan a road, so they should be made to plan a road that will work the community for the next fifty years instead of the next three.

Jeanne Parker voiced her hope that the Council had a chance to go to the forum. The students talked about the tool boxes that different towns have used and that they did comparisons on towns similar size and populations with Homer. Size cap is not the only tool lin the tool box and is not the only way to address this issue. She noted that she feels very firm about no business greater than twenty thousand square feet in the CBD and that has pretty overwhelming support in Homer. She noted that there are differing opinions about large retailers in other locations. The other tools in the tool box are one time fees for remediation of impacts, some towns that were successful with the large retailers supported their small local businesses with loans and infra structures for them to maintain. It was pointed out that large retailers do seriously impact small businesses. She relayed her conversation with Tom Gibbons wherein she asked if that was the only spot that Fred Meyer is looking at and was told that spot is not the only spot. She emphasized that spot is not sacred to Fred Meyer, but is sacred. She encouraged the Council to check out the website of the Washington Students and all the work that they did.

Ann Neland, a refugee from Anchorage, stated when she came to Homer forty years ago, it was love at first sight. She reported on being fortunate enough to retire here, where she was lured by the beautiful surroundings, the interesting people with similar or stimulating other values, the rich cultural life, the gardening, fishing, recreation, and the potential for living a simple life style. She commented on the pleasure of knowing many of the business owners and small business owners by name or as personal friends or neighbors and the feeling of connection with those who provide goods and services. There are others who are refugees from hectic life styles, perhaps even Councilmembers. She stated that, for her, there already is too much in Homer of what she left behind in Anchorage and that she would hate to see any more box stores come to Homer. If it is inevitable that Fred Meyer comes here then her preference is a twenty thousand square foot cap in the CBD where there already is a lot of development. She suggested utilizing some of the great suggestions and plans already developed by the core grad students, which was a very impressive presentation. Council has a very crucial decision to make regarding the box stores and size limits. She urged the Council to put the values of aesthetics, environmental sensitivity and the special interconnectivenss of Homer foremost in their hearts and minds as they wrestle with this difficult decision.

Gillian Beran Maryott, thirteen and one half years old, stated that in one half of a year she can work and she does not want her option to be Fred Meyer or a big box store that does not want to give her any way she can learn a future. She stated that if that is what is going to be her option then she does not want this town to be another Kenai, Anchorage or Soldotna. She advised that she and her mother are going to France for a year and that if Fred Meyer comes her she may not want to come back She commented that she does not want to lose this town to corporate insanities.

Fred Pfeil thanked the Council and expressed gratefulness for their sacrifice of time and work to make Homer a better place. He asked the Council to think about how important this size cap ordinance is for the community, our home. What is done today will shape Homer for a long time, long after we are gone. Let Homer learn from communities that have lost what it is that Homer has and are sorry for it. Homer is so fortunate to live on this bench facing Kachemak Bay, which is what draws the people and the commerce, it is what is here already. With thoughtful planning and responsible development Homer will grow and prosper.

Kathy Smith thanked the Council and the Chamber of Commerce for hosting the EW Design students and the community forum. She shared her interest in everything the students had to say and that she has talked to a lot of people about it and heard some criticism about people who have not spent any winters here, that they did not think about drainage and that wood walk ways would be too icy and that this is too late for Homer and that Homer might as well give in and let the big stores come. She commented about looking at the Town Square area design, that shows these big box stores right in the City. She stated that a box store does not belong here and that she does support the size cap that the planning commission has proposed. She voiced support of locally run Alaskan businesses that have a stake here and give back to the Homer community. A lot can be learned from the case studies by the University of Washington students and from the towns that they studied. These towns put into place design guidelines and reviews, architectural standards, zoning and location restrictions, overlay districts and effective review processes. Homer can use all of these tools to keep Homer likeable and liveable. She thanked the Planning Commission for their hard work and the Council for stocking the Fishin' Hole.

Chris Laing commented when she moved to Homer, about twenty seven years ago, she was struck by its beauty and secondarily by the sense of community and wonderful people who live her. She relayed that she has visited some of the communities that the students compared to Homer and that Homer is very similar to Cannon Beach. One of the things that came out of the comparison with Cannon Beach was how the conscious choice that community made changed to preserve the sense of uniqueness in their community and they did that in their planning process. She commented that this seems more congruous to her with what she feels is special about Homer; Mom and Pop Businesses and a lot of very talented people. People who come to Homer are not looking as much to work in large organization or factory or something as much as to express themselves. She suggested that when looking at development standards ways need to be pursued that preserve that sense of uniqueness that the citizens bring in their own special ways to bring cohesion to the planning process. She commented about growing up in Portland, Oregon where Fred Meyer started and have been in multiple stores and that they are good corporate neighbors; however, Fred Meyer will attract people wherever they are placed. The precious CBD is not the right spot for Fred Meyer, if this store were up on the hill or some distance from Homer, people are still going to drive there, they drive to Soldotna. It would not be a detraction to Fred Meyer or the City to have Fred Meyer close, but not in the heart of the community. She stated that she would rather have the heart of the community focused around the university expansion and around the core of the City and a pulling together of a lot of small businesses that represent the people who live here. She voiced support of the Council's looking really hard at what the students presented, the different avenues and scenarios besides size limits, to create a vision for the community.

Lauren ???? (did not sign in and did not say name) said that she really hoped that Homer did not have to have a Fred Meyer, that she did move here because of the attractiveness of the Bay and the glaciers across the Bay. No matter what the size limit of Fred Meyers, twenty thousand square feet or another number it would be a detraction from the attractiveness of Homer and hoped for this not to happen. She commented about hearing about Fred Meyers in Ellensburg, Washington and Redmond, Washington, really different places from Homer. She did not agree with the comment that prices would be lowered through the additional competition.

Rijil Christianson, born and raised in Homer, informed the Council that she is returning to Homer from Fairbanks, UAF, with a degree in hand. She told the Council that she loves this town, not only because it is her birth place, but because it is a town that is community oriented the residents here are committed to volunteerism and small business development as well as activism. The proposed size caps are a great starting point. She encouraged the Council to not stop with the cap. The building of Fred Meyer or any other big box store would violate the quaint coastal community of this town. She stated that if she wanted to shop, work or look at a Fred Meyer she would have stayed in Fairbanks. She pointed out that the arrival of such a corporate eye sore would not only betray the community vision of this town, but would also stand in opposition of her own personal idea of home. She emphasized that if Homer has evolved into a type of community that would embrace a money driven box store, then, perhaps Homer is not the beautiful home she once knew.

Joel Cooper testified in support of the twenty thousand square foot cap in all zones and an eight thousand square foot cap in all non zoned areas. He voiced his belief that the cap is needed to maintain the character and the small local economy in Homer. He reported that he sat on the Task Force and that one of the reasons for the size limit is for a tool for planning to have an impact on development as opposed to the standards; architecture, design, landscaping. A size cap of twenty thousand is good to for the physical size that allows for development with the landscape, such as some of the good ideas and concepts from the Washington students. He specifically commented on the protection of some of the natural drainages that will be easier with a smaller size building, also with the wetlands and other important habitats. He suggested that the Council consider the idea that was commented to the design team about eliminating all property boundaries when looking at the town square area development, a really good approach especially when wanting to develop with the land scape. The main point about the size cap is how it is going to affect Homer economy and the ability to give a more level playing field. He encouraged the Council to take the time to review some of the Kroger statistics on their webpage. He reiterated what Tom Gibbons, Fred Meyer Rep., had said that all decisions as made from the corporate office in Portland, adding that if you click on the "about Fred Meyer" on their webpage it goes right to Kroger and it says "welcome to the Kroger Family" and et cetera. He commented that one of the Kroger's strategies as a super market industry is that it continues to consolidate and to review potential acquisition candidates. He reported that Kroger ranks number one in 2002 for the number of super market retail chain stores with a total of two thousand four hundred and fifty seven stores and over fifty billion dollars in sales, well above the second competitor, Safeway, with seventeen hundred and sixty one stores and thirty four billion dollars in sales. He stated that Homer is becoming the big competitor ground for the big two corporations for food market retail chains. He suggested that the Council review the 2001 financial statement. He asked the Council to consider the origin of foods, impacts to landscape and land fills and that there is more control with locally owned stores.

Sandy Johns commented on the presentation from Fred Meyer that could not have been a clearer portrait of what will break her heart to see in Homer. She advised the Council that she grew up in southern California and watched all of this march one by one into southern California and make it absolutely uninhabitable. She commented about reference to "refugees" being such a perfect description of how she feels about coming to Homer. She stated that she would hate to see more box stores at all in Homer, but that she does support the size cap if it is absolutely inevitable. More people come here to escape exactly what "they" are proposing. Does Homer want to embrace that? Revenue will always be needed. She shared her disbelief that this is the answer, for Fred Meyer to come to Homer and make anything better and solve the problems that Homer has. The nature of this town inevitably is that people come here, because Fred Meyer is not here and because this is a coveted and amazing place. Growth is inevitable and does not have to happen in that direction and has been proven in other places.

Gay Wolfe, business owner, thanked Fred Meyer for coming since this is what brought this issue before Homer and has caused everyone to consider these most critical issues for the development and future of Homer. She commented about being from Florida, which is just one mass of construction and concrete, that she does not want to live in a place like that and that she is in Homer because of what Homer is now and for its potential. She noted that there has been so much happen in the last ten years in Homer, lots of good down and dirty fighting and that some incredible and wonderful things have come out of these things, adding that out of manure comes roses. Homer is at a very critical point and the Council has one incredible decision and amount of work to do, She shared her excitement of the potential of what those students presented and to finally see something that was visual and that the students gave incredible information. Ms. Wolfe said that she is anxious to use the tools and that she is anxious to hire one of the students, interjecting that there is an opening in the City, a planning position. This community has come together in the last few years and a lot of people have put their money and backbone behind developing their individual properties and businesses to try to move this town forward to give it a vision. She told the Council that she is just thrilled with old town and what is happening down there, Pioneer Avenue, and on Main Street . She shared a different reaction to what is going on in the Bypass location, the only thing worthwhile being the Marine Center, which took a lot of years, ideas and money to make something of real value. She agreed that there needed to be a cap, that the ultimate size of business in Homer needs to be controlled. Ms. Wolfe relayed that she does not mind driving when she leaves town, which is rare, because this is what she loves, where she wants to be, that she likes spending her money here, hoped the rest of the people do too, that she wants to stay here and be a part of this community forever. She emphasized that she is just that sincere in her heart and that her heart is sincere about what happens in the CBD, because it is the heart of this town. It would be a shame to allow that type of business to come in Homer, corporate business. She voiced her hope that this moves forward in a very expedient and very thoughtful process. She thanked the Council for all the time and effort.

Rika Mouw thanked the Council for all the work that they have spent on this already and that she appreciates this opportunity to talk, one more time, about this issue and perhaps the final time. She noted that the Council has heard so many passionate and articulate people come forward to speak on this issue. There are few new points to bring out. She advised the Council that she and John are also refugees from some place else leaving exacting the same thing behind that others have and coming to a place that does not have all of that. She commented on hearing the overwhelming voice in favor of capping future retail and wholesale future buildings at twenty thousand square feet. She applauded the Council for the resolution . She stated that bigger is not better and that better is better. She addressed the comments regarding the survey, that some of the Council have given a lot of weight to a response to a single question and that making a mark in the yes box was a very easy thing to do without a lot of thought and wondered where are those voices. The effort by many, many individuals who have taken the time and trouble to come to Council and Planning Commission meetings reflects a much more committed and thought out response. She voiced her hope that Council would see this effort as far more representative than a quick and almost effortless response to a single question in a survey. She noted that those same survey respondents also voiced a strong desire for thoughtful planning and architectural standards through a group of questions on that topic. She voiced her opinion that the survey was a good idea, but regrets that every citizen did not have an opportunity to respond. There are many people who are very informed and have been very involved in the community who did not get a chance to be part of the statistic in the survey. The arguments for increased sales tax, more jobs and lower prices for the consumer do not hold true after looking deeper into these assertions, these are myths and empty promises. There are many, many options and this is not an either or situation. Sales tax dollars will inevitably grow with a healthy and diverse business community. She emphasized that twenty thousand square feet is a lot of space. This community is changing incredibly quickly right now and is at a cross roads and Council are the ones responsible for making the policies that will determine what direction Homer will take. Council has a huge responsibility, is in a very powerful position and this is Council's chance to really make a difference. Ms. Mouw emphasized that future Council can always change the cap size as demand changes and Homer is not bound to this twenty thousand square foot number forever, there is still flexibility. She pointed out that if Council does not pass this twenty thousand square foot cap size that is more reasonable to the current diverse and local businesses, there is no going back, this decision cannot be reversed, and flexibility will be lost. It is so easy to grow and develop without much thought and is so very challenging to retain what Homer has and do things right. Take the road less traveled. Make this community as wonderful as the people deserve. Quality of life is priceless and does not come with higher consumption and cheaper shopping, or bigger stores and more asphalt. It comes with clean water, clean air, strong community, good educational opportunity, quality health care options, safe environment, many diverse arts and cultural activities and meaningful work. She voiced her trust that the Council would do their homework, do to the fullest on this issue and truly listen to the many, many voices that have come before the Council

Eva Saulitis, a refugee from Fairbanks, voiced support of the twenty thousand square foot cap in all zones, that she does not want to see huge buildings in this area. She encouraged the Council to make a resolution of no more box stores in Homer, at all, there is no reason to have buildings that look like boxes here no matter what their size. She commented on the gateway to Homer, the view from the top of the hill, and the anchor of Homer, Kachemak Bay and the land. Wasilla is a perfect example of what can go wrong, it is horrid and getting much, much worse. No Fred Meyer gateways to Homer. She shared a little bit about her experience in Fairbanks with the giant Fred Meyers store right next to Safeway and ran out the locally owned Natural Food Store. She commented on the myths of getting lower prices. What is happening at this Council meeting is a part of democracy. Corporate capitalism is not the same as democracy. Capitalism does not have to be a giant megalithic store homogenization that is going on as a trend in the Country. Capitalism can be different. Homer can be a model, can be a legacy of doing something different, with a strength be something other than what is going on every where else.

Eval Saulitis submitted a letter from Bonita Banks to be copied for the Council.

Julie Currier voiced support of the twenty thousand square foot cap and that she particularly enjoyed the whereases that start the whole process. She advised the Council that as she read over the Ordinance she really felt proud to have chosen such a place to start this next phase of her life, adding that she plans on spending a long time here. She read a couple of the whereas clauses: The unique appearance has created an aesthetically pleasing and livable community in scale with the environment and our citizens. She stated that she does not think that any box store in Homer, or any other box store in Homer is in scale with the environment or with meeting the need of the community. She relayed that when she moved here eight or nine months ago, she started a business, bought a home, furnished her home and started her life here and never left Homer to do this. She emphasized that everything she needed was right here. Allowing a very large retail store to be constructed is an irrevocable step that changes the very nature of Homer that citizens strive to preserve. She urged the Council to listen and recognize the uniqueness of this community.

Tomeka Hanson commented about recent articles in the Homer News about teen drinking and that one of the reasons is that there is not enough to do for teens. She voice her opinion that the problem that the teens don't know where to find things to do. She suggested that there be a community center where there was more stuff for teens to do, which would help. She told the Council that when her sister and her brother come back from college every summer, one thing they mention is the lack of dancing especially before they were twenty one, which was one of the things that they regretted that there is not enough dancing. She noted that there are a lot of kids her age that have fun dancing and that it would be easier to do if there were a large space and more centralized with community access.

Ben Gibson, returning after college last year, stated that Homer is a good place to live and that he likes to live here for the beautiful mountains and the community. He voiced support of the ordinance as written, that the twenty thousand square foot limit in the CBD is sacred, the thirty thousand and forty thousand upgrades in the other zones are a good compromise and recognize the need for competition and that Eagle not be given, or the other business, a defacto edge over new businesses. He encouraged the City Council to feel confident in taking their responsibility to mete out those places for those buildings. He thanked the Council.

Sue Post, local business owner, commented on seeing a lot of changes in Alaska over the last twenty five years and that she returned to Homer, not for the conveniences of big box stores. She thanked Tom Gibbons for addressing concerns from the previous meeting, adding that she personally has some deeper concerns. She relayed some history of when Safeway became the main food store in town after the other stores closed, prices did not remain competitive. A forty thousand square foot store is still almost twice as large and any of the other existing food stores. She wondered if this store would really carry only groceries, and if so, will it remain competitive if the other stores close. She commented about all the jobs that a large store creates, she asked if it will also create a low cost housing option. She voiced concerns with Homer lacking in affordable housing right now and that Homer is about to lose Barefoot Trailer Park. She commented on the town anchor not being a mega corporate box store and that she would love to see the new library, a new City Hall, perhaps some public bathrooms and a City parking lot with trails branching out. She suggested that if Homer had cross walks and trails and a public parking lot that could become the public anchor. People cold park there and walk from there with the City Hall and Library close by. She noted that this is more her vision with some great art murals to show off the artistic qualities that exist in Homer. She confirmed her support of a building size cap of twenty thousand at the very least in the CBD, but would like to see that in all the zones. Larger stores do exist here already, that's okay, this will likely make these become more valuable, perhaps some will remodel so that they will look more attractive. She shared her excitement with some of the new building remodels and that, again, this summer there is a whole handful of buildings that are being remodeled and that they look great. She noted that she did work on the Task Force, that there is a process in place, she encouraged the Council to keep moving forward and that the report turned into the Planning Commission from the Task Force does have a number of architectural standards as well as landscaping. She encouraged the Council to have these apply to all retail stores. Local business owners are taking pride in the buildings that they are buying and remodeling and this should be encouraged with all business owners.

Al Waddell testified that he is going to be the squeaky wheel and that his family has owned their property for over fifty years. He reiterated his comments from previous meetings regarding his six acres that they would like the chance to develop just like Ray Evarts, Spenard Builders Supply, and his good friend Ulmers True Value. He stated that he would like a building of Ulmer's size or larger so someone can help pay his taxes and mortgage payments, but with the way this ordinances reads it makes it extremely difficult to do so. He noted that he could subdivide to two acres places, have plenty of parking and each store could be in excess of twenty thousand square feet, but as a single owner he can't own, under this ordinance, enough of a building to make it work. He addressed number 2 in the ordinance that says, a group of contiguous or connected - which is crossed out and now reads, all buildings on a single tract of land shall be combined for purposes of this limitation. He emphasized to the Council that he has six acres and asked them if they were going to restrict him to twenty thousand square feet, adding that he finds this really difficult. Number 3, reads: not withstanding any provision of this section or this code no conditional use permit or variance may be granted that would allow a building to exceed the limits of this subparagraph. He voiced his opinion that there may be something come up where somebody had the right for a variance, but underneath this situation, the way it looks, if passed it would severely limit his intentions on what he plans on building. He acknowledged that he is probably one of the last ones to kind of develop, but he is also probably one of the single oldest property owners in town. He commented on not seeing any horses or buggies parked outside, nor that too many of those in attendance walked to this meeting and that there are a lot of nice shiny cars. He urged the Council to sincerely look at this situation. He reiterated that he could divide up the property, that the Council is apparently forcing him to do this, divide and sell and that other people can put things in. He said that he was happy to hear tonight that Fred Meyer is not set on CIRI land and that he thinks he will give them a call. He commented that in 2001 he was to have, without objection, a thirty seven thousand square foot Ulmer's Store sitting next to the Post Office, adding that he has the blue prints and everything for that. Maybe if they lowered from forty thousand to thirty seven thousand, maybe that would fit as an Ulmer's Store would have very adequately fit on that property. He said that he wanted to read something in closing if at all possible, that the CBD says one thing and that the key word is business and it says that in any disputes between residential and business that business would be the way the planning and zoning or whoever would go ahead and push for. He stated that he has enjoyed his life here and that he hopes to continue on it and that he wished everybody that's in this audience that he could say that he had seen them in his store and that he has not. He said that he does not ask for anyone to come in the store, if people come in the store, they come in, they buy and they do what they want. He commented that every time he is in Soldotna, Kenai or Anchorage he sees many, many of these people there buying and that he hates to see the tax revenue leave the town. He read a letter from the Homer News:

A modest proposal, As I understand the Council's stand on the development of Homer and in order to abide by the wishes of the majority of Homerites, I submit the following suggestions. Eliminate all but one art gallery in Homer. That way there will not be undue competition on that one gallery. Allow only one fishing charter business, one flower shop, one pharmacy, one clothing store and so forth. What the heck, let's allow only one artist. Oh, and that pharmacy, only allow it to sell locally grown drugs. Do not allow anyone to clean up their properties or paint their homes as it would change the atmosphere of Homer. Ban all vehicles from entering the City of Homer. If there are no cars, we need no street lights. No round abouts, how about that. And there would be no traffic accidents and no speeders. People could stop and spend their money in the few remaining non competitive shops as they would be too tired to walk the entire distance to the Spit to get on the one remaining, locally owned fishing charter boat. You could make the entire town a vehicle free park. In the same vein, forbid the residents of Homer from owning vehicles, that would prevent them from driving to Soldotna, Kenai or, heaven forbid, Anchorage to buy their supplies. I'm sure people from all over the world would want to come spend their money in our little unique fishing village on the Bay as long as all the above restrictions were put in place. But then, with only one locally owned souvenir shop, Mr. Waddell interjected his hope that it would be his, remaining in town we really would not need many tourists. That would solve the problem for those residents who, though they like the tourist dollars, would just as soon have the tourists mail their money rather then actually come here. Signed by Linda Eagley.

Mr. Waddell voiced his appreciation for this being a democracy and hoped that the Council would look at this thing carefully, because there are a few of the business owners; Ray Evarts, Bruce Turkington, Scott Ulmers, has his, who would like to expand. He voiced resentment of the Lady's comments that the only thing exciting that has happened on the Bypass is the new Ocean and Islands place, adding that he guesses she has not been by his place.

Marla McPherson thanked the Council many times over for their charge to the Planning Commission and the Large Store Impact Task Force for getting this conversation going and for making some great strides in the community. She reported attending the University of Washington grad student's presentation last Thursday and that they showed a lot of really incredible presentations of what the community can look like. The bottom line is that whatever kind of development comes to our town is not going to look like the pretty pictures that Fred Meyer put up on the wall, because the tools are not yet in place to make it look at that. She said that she thinks this is going the right direction and that she really thanks the Council for embracing all the tools in the tool box to start heading that direction. She advised that the reason that she says Homer does not have these tools is because she has seen this with the new Tesoro, Save-U-More, and these are stores that came to Homer and were told to make the buildings pretty and they failed. So, Homer needs something more concrete that is not concrete, something more enforceable and more predictable for the community and for businesses to operate here. The size cap is a really excellent way to start. One of the reasons for the size cap, as Joel and others pointed out, is that it makes it more competitive and levels the playing field with existing businesses. The presentation by Fred Meyers this evening was pretty fascinating, because it showed that. Going from sixty six thousand square feet store, which has books, CDs, electronics, office products, nutrition, and pets, to a forty thousand square foot store that just has groceries, shows that it levels the playing field, making it more competitive with our other large grocery store by taking out the competition with our locally owned book store, pet stores and that sort of thing. She voiced concern that forty thousand is still not leveling it enough, because Safeway is operating a store at twenty five thousand square feet of floor space and that they are selling a lot more than just groceries, adding her suspicion that Fred Meyer would be selling a whole lot more than just groceries in a forty thousand square foot store. She acknowledged that when the Council make these decisions they have to consider many things such as quality of life issues, economic issues and what it means for sales revenues for the City. She commented on the economist presentation on Thursday, University of Washington Students, that the graphs presented did show an increase in sales revenue, but not in City expenses as a result of increased infrastructure to accommodate those stores such as street lights, road maintenance, new law enforcement, parking lot maintenance. The graphs also showed a decrease in taxable sales for the smaller businesses and in one year after box stores opened in Kenai and Soldotna, in Kenai those stores never regained to normal levels since 1993 and in Soldotna those stores have just recently regained back to pre 1994 Fred Meyer levels, but have not been able to show any growth. It is clear that these stores have affected the small businesses and the taxable sales. She relayed her concern that if Fred Meyers comes to town Safeway can't compete, referring to Joel Cooper's comments about Kroger, adding rumblings from Safeway that if Fred Meyer comes to town they will fold. In terms of City sales taxes this will be a wash. The other concern, she shared, is that Fred Meyer comes to town, builds a forty thousand square foot building and cannot succeed. She relayed the strategy of eliminating competition as a corporate strategy. This is not a sustainable revenue, is very dangerous and the City could be left with big empty box stores and loss of all the tax revenue with which the City will have become accustomed. She voiced disagreement with forty thousand in the GC2 and should be twenty, if any zone is slightly larger it could maybe be GC1.

Jenny Stroyeck, commented about testifying a couple of weeks ago, added herself to the list of people who support the twenty thousand square foot cap and that she would be happy to see this in all the districts. She said that she is really glad to see the eight thousand square foot limitation in the an unzoned area. She enthusiastically emphasized that the gateway idea that came up at the forum is fabulous, that Homer has a the perfect gateway into town already and it just has to be preserved. She read one sentence to the Council from the Homer Comprehensive Plan: The City shall work with private business and property owners to ensure that the unique cultural identity of locally owned and developed small business is not lost to national marketing and branding identities.

Sean Marryott commented that he was not prepared to speak tonight, but as he drove by listening on the radio he was compelled by emotion to come back and just let the Council know that he supports this ordinance and that he would like to see the Council keep this town unique and beautiful the way it can be and encouraged the Council to help out. He thanked the Council.

Ken Castner voiced support of the work done by the Planning Commission and that the three zones meet a lot of needs. On the other hand, he voiced his opinion that there can be a community discussion without demonizing any corporation. There are a lot of corporations that do business here in Homer such as NAPA, Car Quest, Safeway. LB Scaggs was just a grocer too and he started Safeway stores just like Fred Meyer. He reiterated that these people do not have to be demonized, but Homer does need to tell them what the ante is, what they will have to do. He shared with the Council that in his business people call him and he inquires as to how much budget they want for landscaping and they say, what ever the City requires us to do. He pointed out that if there is no standards, that is the standard and it is Council's job to come up with the standard, adding that he thinks that the Planning Commission has helped the Council out a lot.

Mayor Cushing called for a recess, during testimony, at 10:23 p.m. reconvening the meeting to take further testimony at 10:35 p.m.

Dale Banks, business owner, congratulated the Council, expressed his opinion that this is a good document and that this is very forward thinking of the Council. He commented that this may be a flip flop approach and that he is concerned that people are trying to justify reasons for a lower size cap and that it seems that reasons need to be justified for a higher size cap. He stated that he does not see reasons for thirty, forty or fifty thousand in this document. He suggested considering that those reasons might be and document those. There must be findings of fact with where these numbers ended up. The better approach would be to start with twenty or twenty five thousand in all the zones and see what happens and reassess later. If everyone has moved out of town and all the businesses have crumbled, guess it was a mistake, adding that he does not think this will happen and that what will probably happen is that this will be effective and a good tool. He urged the Council to start lower and then come up with some sound reasons if they want to make the cap higher than twenty thousand. Mr. Banks commented that he cannot find good reasons to cater to Kroger, that he looked at the Borough economic report that seemed to indicate, as far as overall Borough sales, that the rate of growth did not increase after both K-Mart and Fred Meyer, Kroger went into place in Kenai and Soldotna, respectively. So, before they even existed there was a steady rate of growth, after they came to the Borough there was a steady rate of growth for sales in that area. He commented that one of the conclusions was that the Fred Meyer in the City of Homer would increase sales tax revenues. He inquired about this and was told that this conclusion was not based on fact, that it was an assumption. He thanked the Council.

Donna Beran commented about speaking, before, to the Council on this issue as well. She voiced appreciation for all the work that the Council continues to do and all the work that the Planning Commission is doing as well. She commented on being here for twenty years and seeing the town grow and in many ways wished that there had been some of these things in place earlier. She emphasized that Homer does need to do this. She relayed starting a small business, ten years ago, with her friend Carey Thurmond and that they now have a fabulous new home, because this community has supported that business all these years. The other businesses in town have continued to improve and grow and expand. She told the Council that she just does not see a large corporate entity coming in and capturing the leakage, adding that there was a leakage captured here before and it was oil. She voiced her preference for Homer to continue to grow in the way that the Council has heard everyone, well not everyone, share here tonight that is on a good path of development that doesn't take into town a giant corporate energy.

James Dolma testified that he pretty much supports everything that Dale Banks said and that he gave a great speech. He voiced support of the ordinance with a bit of concern expressed regarding the forty thousand square feet and that he would like this balanced against the possibility of the keeping the store within the City so that the City has control. He also testified on Ordinance 03-23, enforcement of zoning, that this is great, that he is excited about this and that it has been a long time coming.

Scott Ulmer relayed the history of his business, Ulmers that has been in the Lake Side Mall since 1977. Ulmers did not displace one business, Homer Rexall went out of business in 1988 and Ulmers added to the town. He noted that Homer has already had a box store, 1988 Carrs came here and opened a store that far exceeded the economic capacity of this community. He addressed the Council regarding the economic capacity of Homer that when Carrs came in 1988 with their huge thirty thousand square foot store Homer lost Proctors Grocery, Kachemak Food Cache, Fidel Head Music, Wallace's Bakery, Clothing Store in the Point of View Mall and twenty eight hundred square feet of Lakeside Mall in tenants. Homer lost over thirty one thousand square feet of retail and property values tumbled. He asked the Council if they remembered what Proctors looked like as a vacant shell and what the Lakeside Mall turned into as Chuck Harding fought to keep tenants. Does the Council remember how long it took for those buildings to get occupied again and get businesses started, that it took years. He reported that it took him eight years to recover his customer count, with it leveling off like a pool table for the next three. He urged the Council to look hard at history and when Homer got an excess amount of retail space that Homer is not capable of handling. Look at how long it took for this town to come back. Look at what it did to the aesthetics of this town. Homer had taken a dramatic turn in the last several years of becoming a more beautiful place and businesses and buildings improving, due to the economic base and strength to invest in themselves. He told the Council that businesses do not like operating in shabby, deteriorated, ugly, unpainted, unkempt, unlandscaped facilities. When fighting for your life sometimes you just can't quite afford to take care of those amenities, and that is what has happened to this town. He commented on the history of the value and sales prices of Lakeside Mall. He objected to Fred Meyer coming to Homer and what it would do to the current businesses, emphasizing that it would decimate Ulmers and Safeway. He encouraged the Council to allow Homer to grow in a healthy way. So, vacate a thirty thousand square foot building on the highways to make room for another one. He apprized the Council of the increase back into the value of the Lakeside Mall, not because of the paint job, but because of occupying the building with a viable strong business that convinced the banker that he could make the payments. He pointed out that if his business goes out the value of the Mall will be a whole lot lower than the 1.2 million that he paid for it. Mr. Ulmer stated that there is not a forty thousand square foot Fred Meyer store on this planet, that they have not been pushed into this scenario and that they want in this town bad, knowing that they will claim Ulmers, Safeway and several other business and will own this town. Fred Meyer has done their homework and they are good retailers He emphasized local businesses and how these are passed on to future generations, like his dad did. He pointed out that Fred Meyer is not people, it is a huge corporate entity that goes on forever and ever and ever and that it is like a cancer. If the Council lets them in at forty thousand feet they will wait it out, citing the example of the ByPass, that was to be a beautiful green belt and the trucks would go around the business district etcetera. How long did that Bypass scenario last before the next Council that slid in and fell to the demands of the bankers and people owning those properties. This split the town and it has been difficult to deal with the core of the town. He voiced confidence in this Council and worry about the next Councils. He stated that Fred Meyer is a mega multi faceted retailer and not a little mom and pop grocery store. Size restrictions will assist Fred Meyer the most. Mr. Ulmer noted that he doubled the size of his store and his customer base went up single digits, nine percent. Homer's economy is a limited small, very fragile entity. He urged the Council to think hard about the comments that Ulmer's would survive or that he might go, but he deserves it. He told the Council that they do not understand the economy of this town and that they have forgotten history. The size cap is here for a very good reason, to keep out the corporate giants. He voiced support for all the aesthetic issues that the Council is addressing and that he is trying to do his best with the mall without any guidelines.

Bjourn Hansen spoke in support of the size cap in the CBD, because there is no reason that a large retail store is needed in the middle of town and there are a lot better uses for that space like everyone else has said.

Shay Hoffman said that she really can't add anything new, but feels it is important to throw in her voice. She commented on the enormous changes, whether positive or not, she has seen in her four years here. She shared her envy of those who have come back to the home town that this is an incredible thing to want to come back to one's home town and says a lot about a place. She stated that her home town is not a home town anymore, it expanded, grew and changes so much that she did not want to go back there and that she never threw her voice in there. She commented about the sense of community here, how people stop and help when someone has a flat tire, that she feels confident and safe and that this is a rare and precious thing. Big giant stores do not add to community, Homer already has a big giant store and did not think that people would come here for cheap toasters. She voiced her support of the twenty thousand square foot cap any where, in America and how about a twenty thousand square foot green house.

Sunrise Sjoberg, formerly a Kilcher, commented about listening and that she decided to come say something. She said that she was glad for what Scott Ulmer said, because she has been listening to Councilmembers and reading the papers and wondering when anybody was going to say what he did tonight about the capacity. It is just that she really struggles with her position with this issue after being raised here and that to walk on pavement or smell exhaust is no treat for her. She did not oppose progress, voicing belief in growth that is realistic and about what that means. She echoed the comment about helping someone hold something up. She likened the economic base of this community to soil, it can be improved and provide more. She commented about the Proctors building now owned and renovated by Nomar, which is kind of cool and that years ago was owned by Lillian Walli. People treat money like it is a living thing and it is not. She did not object to Fred Meyer coming if it can be done without being a deadly thing. She commented about Save U More and Ray's Kachemak thing and that she does not disagree with lowering food prices in Homer, but does not think Homer should be tempted by that either. She stated that groceries is the last thing that she feels she needs in Homer and that she goes to Fred Meyer in Soldotna and also buys other things she needs when she is there; however, can find what she needs in Homer. She voiced her opinion that the whole idea of having one place to go to get everything is confining, there are so few places to go in Homer already and that she does not want to limit herself that way. He said that she loves all the new businesses starting up. Businesses are a service to the people, with a hope of making a living. She voiced her dislike of having what she gives for some service go to someplace she does not know.

Steve Gibson suggested that this is an opportunity to look at for making the City and the area around it a place that we can conceive of our grandchildren being happy living here, which is one of the highest priorities. After that comes a lot of the other things that have been discussed tonight, competition and design standards and things that need to be made over the next few months. He said that it seems to him that there is a fundamental difference in the vision he has heard tonight and that which is in the form of a big box store. He said that the constraints in GC1 and 2 are not enough and recommended that the Council bring these down to thirty thousand feet and keep the CBD at twenty thousand. One thing this would do is give some parity between Fred Meyer and Safeway. It would be beneficial to the town to see some competition here, because as long as Homer is kept at market for one store then Homer will always be paying top prices. Homer is paying just as much as in the days of Proctors in proportion to Anchorage sales prices. He encouraged the Council to look at this from economic points of view and from those points of view that are subjective there are strong arguments in every case for going with the caps. He voiced his hope that subsequent City Council's do not change these caps. He voiced appreciation for Council's consideration and acknowledged their work.

David Schneider commented that his oldest son graduated from sixth grade and they took him out to dinner tonight. As his wife was taking the babysitter home he turned on the radio to catch Scott Ulmer and a few other people and thought he should come give his two bits too. He commented that it occurred to him that there are many people in his life who question sometimes why he lives in Homer. He relayed that he suggests to them that it is a great place to raise his children, it is a unique place, a lovely place and has a high quality of life. He voiced his thought that if Homer became somewhat homogenized that the strength of that argument might be diluted a little bit. He told the Council that it occurred to him today as he was reading an outside magazine that he came across a full page ad put in there by the City of Telluride and their opening sentence is that one day Freddy Franchise came to town and the rest of the ad went on to describe how they resisted Freddy Franchise. He noted that they felt it worthwhile to take out a full page and in a fairly expensive magazine.

Councilmember Ladd asked for permission to make a statement. Mayor Cushing allowed the statement.

Councilmember Ladd addressed some of the comments, Robert Frost poem a road not traveled and added another line of a Frost poem, walls make best neighbors. The Wall Street Journal of today reports that Walmart is the number one grocer in this country today with fifty four billion dollars worth of sales, Kroger is close behind, followed by Albertsons and Safeway of which they say Albertsons is shrinking and Safeway is struggling. What is going on it the competition today is that the rate we are paying for food is twice as high as the producer index for food. Walmart is undercutting the others by ten to fifteen percent. When we say that these folks in the back room are not being pushed, yes they are being pushed and that is why they are here. They are being pushed by the one that is really gaining the market and that is Walmart, the little guys, Albertsons and Safeway, one is not going to be around according to this particular article here. He said that he has some questions for Fred Meyer, Kroger, noting that the Council is going to get a Finding of Fact from the Planning Commission which is gong to support, with hope, more than just subjectivity. He stated that he wants to see objective type facts when it comes to economics. In the overhead presentation the word, leakage, was mentioned. He reported that he has done some studies with economic figures and if he were to do some projections, based on retail sales in this town, for 2004 he comes up with around ninety million dollars for this community. There may be four to nine million going outside. He relayed asking Fred Meyer if they came in with an forty thousand square foot store and not devastate Safeway how are they going to prevent this leakage from occurring. He voiced concern and that he wants sound objection information. He encouraged Fred Meyer to provide some information to assist him in making a sound objective decision.

Councilmember Fenske asked for permission to speak.

Mayor Cushing asked if there was any objection and hit the gavel. No objection was voiced.

Councilmember Fenske stated in this Ordinance 03-25 and 03-25(S) there have been several changes and suggested that there be at least another public hearing and maybe two, because the two ordinance are so different. He noted in section 8, Marine Industrial Zone, the height of buildings the sixty five foot has been deleted in the substitute and is now occurs in GC2. He emphatically stated that he would like to have a document that is not changing meeting to meeting and public hearing to public hearing.

Mayor Cushing asked that it be noted for the record that rules were suspended informally and at the concurrence of the Council to provide for some Council deliberations during public hearing where it was not scheduled. He noted that Council has had two hours during Committee of the Whole to deliberate on this matter and will have more time next meeting. He pointed out that there is a lot of business before the Council and there are people waiting on Council's action. He then hit the gavel and moved the meeting along.

C. Ordinance 03-27, Of the City Council of Homer, Alaska Accepting and Appropriating a Coastal Impact Assistance Program (CIAP) Grant in the Amount of $75,000.00 and authorizing the City Manager to Execute the Appropriate Documents. City Manager. Fiscal Note: Acct. 151.748, Revenue and Expenditure. (First Reading 05/12/03, Public Hearing 05/27/03 and Second Reading 05/27/03).

There was no public testimony.

STARK/YOURKOWSKI - MOVED THAT ADOPT ORDINANCE 03-27 BY READING OF TITLE ONLY FOR SECOND AND FINAL READING.

There was no discussion.

VOTE: YES: NO OBJECTION. UNANIMOUS CONSENT.

Motion carried.

D. Ordinance 03-28, Of the Homer City Council that Homer City Code Section 3.16.080, Local Bidder Preference, Shall Continue in Force Indefinitely. City Council. (First Reading 05/12/03, Public Hearing 05/27/03 and Second Reading 05/27/03).

There was no public testimony.

STARK/KRANICH - MOVED FOR THE ADOPTION OF ORDINANCE 03-28 BY READING OF TITLE FOR SECOND AND FINAL READING.

There was no discussion.

VOTE: YES: NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

E. Ordinance 03-29(A), Of the Homer City Council Amending Homer City Code Section 17.04.030, Improvement Districts--Formation and Assessment. Directed by Mayor and Council. City Clerk (First Reading 05/12/03, Public Hearing 05/27/03, Second Reading 06/09/03).

E.1. Ordinance 03-29(S), Same title. Includes the amendment and elucidative language has been added regarding the project cost estimate and assessment estimate.

Memorandum 03-89, from City Clerk as backup.

Maureen Moore testified that this looks like rearranging of wording of what previously existed, that there were no changes to the body of the process or to the forms and that she objected to the thirty days for renewing of the request with modifications. She inquired as to how the property owners would be apprized of the renewal of the request or of the renewal period. She reflected a general dissatisfaction with the Ordinance, that the City needs to take the driver's seat on creating LIDs and in looking at the structure in place and deciding what is the next best step to take instead of having someone just walk up and say, "Here, I think this boundary looks good to me, let's make a petition and put some names on it of the people that live there." She voiced her opinion that the City spends a lot of time on LIDs and talking to people about projects that may not even happen.

ORDINANCE(S)

A. Ordinance 03-01, Amending Title 17 of the Homer City Code, regarding Improvement Districts. Recommended by City Attorney. Mayor and Council. (First Reading 01/13/03, Public Hearing 01/27/03 and second reading 02/10/03, Remanded to Administration for further consideration, main motion for adoption is on the floor.)

Main Motion on the floor: FENSKE/BECK - MOVED FOR THE ADOPTION OF ORDINANCE 03-01 BY READING OF TITLE.

As noted on the Ordinance Reference Sheet: Staff recommends that the Council vote this Ordinance down and that the staff comes back with a new ordinance that includes those matters addressed in Ordinance 03-01 and not addressed in Ordinance 03-29(S) and one that also addresses further concerns voiced by the Council such as the objection period process.

There was no other discussion.

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

Motion failed.

B. Consent Agenda Item D. Ordinance 03-32, Of the City Council of Homer, Appropriating $ from the Animal Shelter Account to Formalize the Plan for Construction and Authorizing the City Manager to Execute the Appropriate Documents. Fenske. Fiscal Note: Acct. 151-728, amount not identified. Recommend Introduction and conduct Public Hearing June 9, 2003 and Second Reading on June 23, 2003.

FENSKE/LADD - MOVED FOR THE ADOPTION OF ORDINANCE 03-32 BY READING OF TITLE.

There was a brief discussion regarding filling in the blank with an amount. It was noted that there is a little over four hundred thousand dollars for this project and that this ordinance is to ensure that this project is addressed before winter. There was comment on the current design by Kluge that the internal configuration of the building left something to be desired. This Ordinance will move the project along, try to conserve time so that there would be time enough before winter to still address the issue of the Animal Shelter. Council had given sixty days to find an alternative site, July1st, and if this Ordinance is approved the plan can be ready to go so that when the first of July rolls around the design can be applied to the current site or whatever site is selected. This Ordinance will move the whole process along about a month and a half faster.

LADD/FENSKE - MOVED TO AMEND TITLE TO APPROPRIATE FUNDS NOT TO EXCEED $25,000.00.

There was no discussion

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

Motion carried.

STARK/ - MOVED TO AMEND PUBLIC HEARING AND SECOND READING ON THE TWENTY THIRD.

Motion died for lack of a second.

Mayor Cushing recognized Councilmember Fenske's informal call for the question. There were no objections.

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

Motion carried.

C. Consent Agenda Item E. Substitute approved under Agenda Approval. Ordinance 03-33(S), Of the City of Homer Extending Section 1 (A, B, C, AND D), Section 2 and Section 3 of Ordinance 02-53(S)(A) for a Period of Six Months, and During this Time Frame the Planning Commission will Submit and the City Council will Act Upon a Proposed Ordinance Containing Criteria Standards for the Site Development, Utilities and Services, Environmental, Community, and Fiscal Impacts used to Assist in the Development and Assessment of Large Retail and Wholesale Structures. Ladd. Recommend Introduction and conduct Public Hearing and Second Reading on June 9, 2003.

LADD/STARK - MOVED FOR THE ADOPTION OF ORDINANCE 03-33(S) BY READING OF TITLE .

Pros and Cons were discussed regarding extending Ordinance 02-53(S)(A), which is fast approaching its sunset date. This is the Ordinance that deals with some of the criteria that the Large Store Impact Task Force was dealing with and now the Planning Commission on the impact statements and impact standards and the criteria to measure those standards.

The body of the Ordinance was discussed: Section 1,A. For purposes of this ordinance "Very large retail and wholesale structure" means any structure or combination of connected structures greater than 30,000 square feet in building area (see HCC 21.32.065) that includes one or more retail and wholesale businesses. Section 1,B. This ordinance applies to all zoning districts within the City. Section 1,C. Any large store application submitted to the City prior to Planning and Planning Commission submitting recommendations required by this ordinance to the Council and prior to the Council approval of said recommendations will be required to: conduct early developer-community meeting scheduled and publicized in cooperation with the City, and include an impact report addressing items 1-7 identified in (D). Section 1,D. The Planning Director, working with the Planning Commission shall immediately initiate necessary steps to be followed for the development of retail and wholesale structures of 30,000 or more square feet of building area and identify a process required for early developer-community meetings as a part of the large structure application process. At the time of application, the developer will submit an impact report including, but not limited to: a. compatibility of structure to small-city atmosphere presently enjoyed in Homer,

b. impact of structure on vehicular flow, parking, and emergency services,

c. cost impact to City services: police, fire, and emergency,

d. assess environmental impact and potential costs resulting from both waste water, surface water run-off, and lighting,

e. impact to community to include potential public and private employment/unemployment, City revenue gained/lost, and ramifications to presently established business,

f. feasibility study addressing potential use of comparably-sized, vacant structure(s) existing in Homer, and

g. impact to neighboring residences.

That the Planning Commission use the time extension to conduct and complete an intensive review of the Large Store Task Force report containing large retail and wholesale structure development impact statements and standards and to submit a proposed ordinance for these standards to the City Council. Planning Commission action and final action by the City Council will occur in the extended six-month period.

Councilmember Fenske pointed out that there is an Ordinance in place, in effect, right now, for the conditional use permit for buildings over eight thousand square feet. He expressed his opinion that applying conditions is more appropriate. He asked the Council to consider not continung this Ordinance and single out the CBD and write in the conditions for construction that will apply to buildings over eight thousand square feet. He pointed out that the Task Force has already stipulated most of those conditions and that the Planning Commission apply those conditions as stipulated by the Task Force.

Councilmember Stark voiced agreement and concern that this could go on for years. He voiced his opinion that the standards are far more important that the cap and will do the job.

Pro and con discussion continued.

KRANICH/ - MOVED TO AMEND THE FIFTH WHEREAS TO CHANGE THE REFERENCE OF ONE THROUGH SEVEN TO A. THROUGH G.

There was no discussion on this amendment.

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

Motion carried.

There was some discussion about voting this Ordinance down and coming back with a resolution. Discussion ensued.

Mayor Cushing reminded the Council that the public has commented about the size in all zones not just the CBD.

YOURKOWSKI/KRANICH - MOVED TO SUSPENDED THE RULES TO KEEP GOING ROSE (Councilmember Beck) SAYS WE'RE DONE.

VOTE: (suspension of rules to continue past midnight) YES: NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

Mayor Cushing recognized Councilmember Stark's informal call for the question.

There was no objection.

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

Motion carried.

CITY MANAGER'S REPORT

A. City Manager's Report (Updates/Follow-up, Memo/Ordinance Writing and the Task Force Recommendations, Anchorage Daily News Article Regarding Planning Issues in Anchorage, Alaska Municipal League Fax Alert/Proposed State Budget Cuts, House Ways and Means Committee/State Sales Tax/Attached Memo from Finance Director Baugh, Letter to National Oceanic and Atmospheric Administration (NOAA) from Port/Harbor Director Abbott, Letter from Debbie Poore and Letter from the Alaska Department of Transportation and Public Facilities (DOT/PF)/Traffic Study.)

There was no discussion.

COMMITTEE REPORT

PENDING BUSINESS

NEW BUSINESS

A. Executive Session pursuant to AS §44.62.310(c)(1), Matters the immediate knowledge of which would clearly have an adverse effect upon the finances of the public entity. (Ocean Drive Loop Bluff Erosion Control Project.

EXECUTIVE SESSION DELETED UNDER AGENDA APPROVAL.

B. Memorandum 03-90, from City Clerk Re: Process for City Manager Evaluation in June as directed by the Council in January.

Recommendation: Conduct the City Manager's evaluation on June 23,, 2003 via Executive Session, period.

FENSKE/KRANICH - MOVED FOR THE APPROVAL OF THE RECOMMENDATION OF MEMORANDUM 03-90.

There was a brief discussion to change the date to July to effect a full six month period.

LADD/BECK - MOVED TO AMEND TO CHANGE TO THE LAST MEETING DATE IN JULY. (July 28, 2003.)

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

Motion carried.

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

Motion carried.

C. Consent Agenda Item M. Memorandum 03-75, from Finance Director, Re: Fish Factory, LLC Lease. Fiscal Note: Revenue: 100.4650.035. Recommend approval.

KRANICH/FENSKE - MOVED FOR THE APPROVAL OF THE RECOMMENDATIONS OF MEMORANDUM 03-75.

This is to lease a portion of lot 12B City of Homer Industrial No. 3, 17 ft wide and 225 ft long (3825 sq. ft.) along the fence behind the fish grinder building for storage. The lease rate is $96.00 per month plus tax.

There was a brief discussion.

VOTE: NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

D. Consent Agenda Item P. Memorandum 03-87, from City Manager, Re: City Planning Function. Recommend approval.

RECOMMENDATIONS

1. Increase salary for city planner to make Homer competitive and attract high quality candidates ( in progress)

2. Consider elevating the planning division to a department to increase its stature. Changing the city planner to planning director and adjusting the salary accordingly could help attract and retain quality people. (review during next budget cycle or after we have had time to evaluate performance of new city planner.)

3. Add one additional staff person. I recommend that this person be a planning technician to start and be responsible for permitting and zoning compliance. (plan for in FY 04 budget)

4. Review salary scale generally to attract and retain quality staff people. (in progress)

5. Clarify and formalize the lines of authority for planning staff. Work with all parties to better coordinate competing demands and requests. (manager and new City Planner).

6. Improve internal management and organization to provide for increased efficiency and productivity. (manager and new city planner)

7. Provide additional funding and support for staff training and development (next budget)

8. Revise and Upgrade codes to eliminate ambiguity, contradictions, and outdated materials.

9. Improve administrative support for the planning staff (Manager)

LADD/YOURKOWSKI - MOVED TO APPROVE THE RECOMMENDATIONS OF MEMORANDUM 03-87.

Council discussed the fact that there are significant ramifications to these recommendations, the division should be elevated to a department and the planner to a director and when this should be effective.

LADD/BECK - MOVED TO POSTPONE ACTION ON MEMORANDUM 03-87 TO NEXT MEETING.

Pros and cons of postponement was briefly discussed.

City Manager Wrede advised that he is in the process of interviewing for a City Planner, that the job went out for a planner and not a director and that there are some differences within the job descriptions and qualifications. He emphasized that the two planning employees are anxiously awaiting the hiring of a new City Planner.

The Manager was commended for the memo, with a side note that it shows that he has a wonderful grasp of the situation in planning.

VOTE:(postponement) NO: KRANICH, BECK, FENSKE, LADD, YOURKOWSKI, STARK.

Motion failed.

LADD/YOURKOWSKI - MOVED TO AMEND ITEM NUMBER TWO. WHERE IT WOULD READ: EFFECTIVE FY 04, ELEVATE THE PLANNING DIVISION TO A DEPARTMENT, CHANGE THE CITY PLANNER TO PLANNING DIRECTOR AND ADJUSTING THE SALARY ACCORDINGLY. (REWORDING)

This would provide the manager with the opportunity to ascertain if the City Planner he hires can be a Director or if a Director will need to be hired. There was some discussion, at the Manger's discretion, the City Planner he hires could be the fourth, the additional person in Planning if not qualified to be the Director. This could wait for the budget process.

FENSKE/ - MOVED TO AMEND THE SAME SENTENCE AND MY AMENDMENT WOULD DROP THE CENTER SENTENCE OF ITEM 2.(THE PART THAT WOULD BE DROPPED IS CHANGING THE CITY PLANNER TO PLANNING DIRECTOR AND ADJUSTING THE SALARY ACCORDINGLY. THE FIRST SENTENCE SAYS CONSIDER ELEVATING THE PLANNING DIVISION TO A DEPARTMENT.)

Motion dies for lack of a second.

Discussion ensued.

Mayor recognized information call for the question by Councilmember Ladd, there was no objection.

There was a call for unanimous consent and there was objection.

FRIENDLY AMENDMENT TO DELETE THE FY 04. There was no objection.

VOTE:(primary amendment with friendly amendment) YES: STARK, KRANICH, BECK, FENSKE, LADD.

NO: YOURKOWSKI.

Motion carried.

There were some additional comments regarding the hiring process.

Mayor Cushing recognized the informal call for the question by Councilmember Stark. There were no objections.

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

Motion carried.

RESOLUTIONS

A Resolution 03-72, Of the Homer City Council Designating the Eight City Owned Lots on the North Side of Hazel Street as the Location for the New Homer Library, (PARCEL NUMBERS: 177-107-08, 177-107-09, 177-107-10, 177-107-11, 177-107-12, 177-107-13, 177-107-14, AND 177-107-15).. Mayor. Ladd. LAB. (Pulled off may 12, 2003 agenda and forwarded to may 27, 2003 agenda.)

Memorandum 03-80, from Councilmember Fenske as backup. (Discussion postponed on May 12, to May 27. )

Memorandum 03-81 from Councilmember Kranich as backup. (Pulled off May 12, 2003 agenda and forwarded to May 27, 2003 agenda.)

FENSKE/STARK - MOVED FOR THE ADOPTION OF RESOLUTION 03-72. BY READING OF TITLE.

Councilmember Ladd called for the question and there was objection.

Mayor Cushing called for a roll call vote on the informal call for the question.

VOTE:(call for the question) YES: FENSKE, LADD, KRANICH, BECK.

NO: YOURKOWSKI, STARK.

Motion carried.

VOTE: (MAIN MOTION) YES: BECK, FENSKE, LADD, KRANICH

NO: YOURKOWSKI, STARK.

Motion carried.

LADD/BECK - MOVED FOR THE RECONSIDERATION OF RESOLUTION 03-72.

VOTE:(reconsideration) YES: BECK, FENSKE, LADD, STARK, KRANICH.

NO: YOURKOWSKI.

Motion carried.

There was discussion on the Hazel Avenue lots, the university property.

Councilmember Stark objected to using the high value Hazel Avenue parcels and encouraged the Council to consider the 4.6 acres at the northwest corner of Town Square presently owned by the University of Alaska that are being considered for purchase by the City. He voiced his opinion that at a maximum only the westerly four lots of Hazel Avenue site. The Hazel Avenue site was chosen by the Library merely because it would be available a month or two sooner and with this process having gone on for twenty years that is not much of a reason to choose an inferior site. Resolution 03-73 calls for a delay of two months to achieve the best site for the new library.

STARK/YOURKOWSKI - MOVED TO SUBSTITUTE RESOLUTION 03-73 FOR 03-72.

Mayor Cushing recognized Councilmember Ladd's informal call for the question. There was no objection.

VOTE: (primary amendment to substitute) YES: STARK, YOURKOWSKI.

NO: KRANICH, BECK, FENSKE, LADD.

Motion failed.

STARK/ - MOVED TO AMEND TO ELIMINATE THE FOUR EASTERLY LOTS.

Motion died for lack of a second.

Mayor Cushing recognized Councilmember Ladd's information call for the question. There was no objection

VOTE: (Reconsidered Resolution 03-72) YES: KRANICH, BECK, FENSKE, LADD.

NO: YOURKOWSKI, STARK.

Motion carried.

Mayor Cushing allowed Councilmember Stark to make a statement about not spending a massive amount on the Hazel Avenue Lots so that when the City acquires the University lots this issue can be revisited and that it would be appropriate to revisit it.

B Resolution 03-73, Of the City Council of Homer, Alaska, To Approve Sites for the Homer Public Library. Stark. (Pulled off May 12, 2003 agenda and forwarded to May 27, 2003 agenda.)

This resolution was not considered further.

C. Resolution 03-74, Of the City Council of Homer, Alaska, Donating a Parcel to Kenai Peninsula Housing Initiatives (KPHI) Program for the Construction of Homes by the Sea, a Complex of Eight Supervised Living Units for Low Income Developmentally Challenged Clients. Deeming this Transaction Advantageous to the City of Homer for the Promotion of a Healthy Community, Placing a Parcel Back on the Property Tax Rolls, Increasing the City's Utility Customer Base, and Authorizing the City Manager to Execute this Transaction on Behalf of the City of Homer for One Parcel, # 179-061-01, Located on the S/W corner of Mattox and East End Road. Fenske.

FENSKE/STARK - MOVED FOR THE ADOPTION OF RESOLUTION 03-74 BY READING OF TITLE.

There was no discussion

YOURKOWSKI/LADD - MOVED TO REMAND TO PLANNING COMMISSION FOR PERMITTING ISSUES AND ZONING COMPLIANCE AND NEIGHBORHOOD NOTIFICATION AND PUBLIC HEARING AND BACK TO THE COUNCIL FOR THEIR JUNE 23RD MEETING AT WHICH TIME COUNCIL WILL CONDUCT A PUBLIC HEARING ALSO AND SCHEDULE ACTION ON THIS RESOLUTION.

Before the Mayor stated the question in final form it was massaged by the Council and is noted in its final version above.

Land dispersal was very briefly mentioned.

Mayor Cushing recognized Councilmember Ladd's informal call for the question and there was non objection.

VOTE: YES: NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

Mayor Cushing called for recess at 12:53 a.m. reconvening the meeting at 12:56.5 a.m.

D. Consent Agenda Item G. Resolution 03-76, Of the City Council of Homer, Alaska in Support of the City of Homer Application to the Alaska Department of Transportation and Public Facilities (DOT/PF) for Tourist Oriented Directional Signage in the DOT/PF Right-of-Ways at the Intersection Areas where the Sterling Highway Intersects Pioneer Avenue, Main Street, Lake Street and Ocean Drive/Homer Spit Road, and at the Pioneer Avenue/Lake Street/East End Road Intersection and that the Signage Indicate the Type of Businesses/Services and Authorizing the City Manager to Execute the Appropriate Documents. Mayor. Fiscal Note: Acct. 100.5227.101, Clerk's Advertising budget estimated cost $!80 each, five signs, with City installation. Recommend adoption.

STARK/FENSKE - MOVED TO APPROVE BY READING OF TITLE.

There was a comment made regarding the need for pedestrian right of way signage, however, as noted this does not pertain to TODS.

Mayor Cushing pointed out that this has essentially been requested through Council's meeting with Rex Young, DOT's regional planner. He also clarified what TODS are and what the criteria is for TODS.

Mayor Cushing recognized Councilmember Ladd's informal call for the question. There was no objection.

VOTE: YES: NON OBJECTION UNANIMOUS CONSENT

Motion carried.

E. Consent Agenda Item. J. Resolution 03-79, Of the Homer City Authorizing the Renaming of the Junior Field, Located at Karen Hornaday Hillside Park as the Michael L. Daugherty Baseball Field. Kranich. Recommend adoption.

STARK/KRANICH - MOVED TO APPROVE BY READING OF TITLE.

Councilmember Kranich reported being contacted by a member of the Homer Little League Board about sponsoring this Resolution, adding that he fully supports the Resolution.

The Council recognized and commended the work and commitment of Mike Daugherty. The need for a public hearing was briefly mentioned.

Councilmember Stark called for unanimous consent.

VOTE: YES: NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

COMMENTS OF THE AUDIENCE

Pete Roberts shared some observations that he made at the community forum on the town square and that he would like these considered. The parking ordinance changed conditions in town and guaranteed that the City would be spread out. The City's business area is thirteen miles long. What do you want to see for the future of Homer? A spread out town? Do we want a compact town? To be user friendly have to have plenty of parking to have a strip City. He suggested that the parking ordinance be amended to make things more compact. He commented on the architectural students having lots of City parking in their views. One idea was the cosmic circle, a bit screwy. The tax base in this town was a big issue for annexation. There is becoming more and more non taxable land within the CBD with a current forty percent non taxable right now. He commented on CIRI land, the library property, university land and et cetera. He suggested that the Council look at tax impacts. He commented that it would be nice to have a park, not so large a social park and more of a wilderness park. Make the CBD more compact, carry more revenues to run the City, that is getting huge in terms of costs, personnel and that people like it this way and it needs to be funded. He thanked the Council.

COMMENTS OF THE CITY ATTORNEY

City Attorney Tans was not present.

COMMENTS OF THE CITY CLERK

City Clerk Calhoun had no comment.

COMMENTS OF THE CITY MANAGER

City Manager Wrede had no comment.

COMMENTS OF THE MAYOR

Mayor Cushing noted that nearly four hours were spent on public testimony and that the Council did a lot of action in a short period of time.

COMMENTS OF THE CITY COUNCIL

Councilmember Ladd requested that the Large Store issue be at the top of the agenda for the next Committee of the Whole.

Councilmember Stark gave the Manager a written request, which he already copied to the Mayor and Council, to prepare by June 9th a comparative analysis of tax income increases or decreases based on two scenarios with large stores. He voiced concern regarding the potential vetoes by the Governor, that James Clark, Cheryl Frasca and the Governor will be making the decisions and that it is desirable that the Manager and a Councilmember arrange a meeting with, at least, Cheryl Frasca in Anchorage during the next month to reduce the amount of vetoes to the State budget on the projects that are approved for Homer.

Rose Beck voiced appreciation for the public comments and testimony. She suggested that Council consider reducing the five minute time limit to three minutes and asked if there was support for that change.

Councilmember Stark voiced support.

ADJOURNMENT

There being no further business to come before the Council the meeting was adjourned at 1:33 a.m. The next Regular Meeting is scheduled for Monday, June 9, 2003 at 7:30 p.m. The Committee of the Whole is scheduled for Monday. June 9, 2003 at 4 p.m. at 5 p.m. the Council will conduct a joint session with the Parks and Recreation Commission, Planning Commission, Port/Harbor Commission, and the Library Advisory Board regarding Land Allocation Matters.

______________________________________

MARY L. .CALHOUN, CMC, CITY CLERK

Approved: _____________________