Session 03-22, a Regular Meeting of the Homer City Council was called to order at 7:00 p

Session 03-22, a Regular Meeting of the Homer City Council was called to order at 7:00 p.m. by Mayor Jack Cushing at the Homer City Hall Council Chambers located at 491 E Pioneer Avenue, Homer, Alaska, and opened with the Pledge of Allegiance.

The Committee of the Whole meeting was held from 4:07 to 5:30 p.m. regarding the Regular Meeting Agenda and the Beach Policy Committee Presentation.

A Budget Worksession was held on Monday, December 1st and was held from 2:07 p.m. to 5:00 p.m.

The Council held a Special Meeting on Monday, December 1st that was called to order at 5:01 p.m., recessed at 6:43 p.m., reconvened at 1:11 a.m. on December 2, 2003 and adjourned at 2:05 a.m. on December 2, 2003.

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

STAFF: CITY MANAGER WREDE

CITY CLERK CALHOUN

FINANCE DIRECTOR BAUGH

LIBRARY DIRECTOR HILL

PUBLIC WORKS DIRECTOR MEYER

ABSENT: COUNCILMEMBERS: BECK (excused)

AGENDA APPROVAL

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

The agenda was approved by consensus of the Council with the following changes: Consent Agenda - Ordinance 03-63, Comments by City Attorney Tans regarding Councilmember Yourkowski=s Email and Public Comments and Revised Ordinance 03-63 and change on recommendation. Substitute Resolution 03-146(S), awarding the bid to Wolverine Fencing, Inc. of Seward, Alaska in the Amount of $46,900.00 with backup Memorandum 03-194 from Port/Harbor Director. Petro Marine letter regarding Harbor Enterprises Lease. Title correction on Memorandum 03-201, Funding Request/Land Acquisition in Bridge Creek Watershed. Ordinance, Budget page updates from Finance Director Baugh. City Manager=s Report, Letter from Senior Citizens Center Administrator. Resolutions, Substitute 03-143(S) Ocean Drive Loop Bluff Erosion Control, with corrected assessment roll, correction assessment amount for Larry Goode a typo, was correct on the public hearing notice, Property Owner comments. Resolution 03-147 Coal Bed Methane - lease buy back Public Comments. Substitute Resolution 03-147(S). Resolution 03-82(S) with backup Memo 03-202 on Consent Agenda.

There was no objection from the Council .

Councilmember Novak requested that Memorandum 03-198 be removed from this agenda and placed on the to December 8, 2003 Regular Meeting Agenda.

There were no objections from the Council.

Cece Grevemberg addressed the Council regarding the portions of the smoking ordinance, Ordinance 03-63, that pertains to her business. She read in the first draft: AExemptions: The following are exempt from the provisions of this chapter. a. A business or place owned and operated as a sole proprietorship with no employees, except this exemption shall not extend to a business or placed owned, operated, or used by a sole proprietorship as a child care, adult day care of health care facility. She told the Council that this exemption is seen as an attempt to quiet her since she has been very vocal on this issue. She asserted that this whole ordinance is against her Civil Rights. She stated that the provisions have been changed and read: AExemptions. g. A business or place owned and operated with no employees that was established prior to the passage date of this Ordinance, provided that smoke from such a place does not infiltrate through doors, windows, or other passageways, into areas where smoking is prohibited and that no children under the age of 19 are permitted to enter these establishments.@ She inquired if the age limit applied to the Elks, American Legion, VFW, Duggans, Alice=s etcetera that will not be following this Ordinance and who will be allowed to have smoking. According to Ms. Grevenberg, Councilmember Yourkowski told Chip Duggan that he would be able to serve food to persons under the age of nineteen that come into his establishment. Ms. Grevenberg inquired why her business, that does not serve or sell alcohol or tobacco products will not be able to serve anyone under the age of nineteen, however, those under nineteen will be able to go to the Elks or Duggans or several other places. She stated that the Council should protect all the children under nineteen. She pointed out that she is the only restaurant adjacent to the airport, that she has customers that fly in from all over Alaska and lower forty eight that stop in Homer to fuel their planes next door and to have lunch at her restaurant. She stated that Homer is one of the few airports in Alaska that has a restaurant, but if those people have a child with them they will not be able to eat at her place and should not have an added expense of hiring a cab to go to another restaurant, especially when they fly in to eat at her restaurant. Ms. Grevenberg voiced her opinion that this provision is against her Civil Rights and parents= Civil Rights to control their own children. She relayed that several days ago, before the new draft, the Alliance for Fresh Air phoned one of the owners of the building wherein she has her restaurant, to inquire if the smoke from her restaurant infiltrates into their air space. She said that she wondered if the Alliance for Fresh Air checked on all businesses located next to a business that allowed smoking or if her business was being singled out in this. She voiced support of the proposed Ordinance drafted by Councilmember Stark, that it seems to be fair to all businesses and customers, and posting of smoking and non smoking signs should be sufficient. Ms. Grevenberg stated that if Councilmember Beck=s Ordinance passes she will be seeking signatures to go to referendum to take this to public vote.

Michael McCarthy, resident of Homer and on behalf of the Kachemak Bay Property Owner=s Alliance, voiced support of Resolution 03-147, regarding the Coal Bed Methane buy back and repeal of House Bill 69. He stated that in order to ensure that Homer=s livability and quality of life, as we know it, is protected by state and local safe guards that have the force of law, not the case presently, the Kachemak Bay Property Owner=s Alliance unanimously supports the buy back of Coal Bed Methane leases and the repeal of House Bill 69. He thanked the Council.

Dan Boone, lives in Eagle View Subdivision, voiced his appreciation of the opportunity to speak with the Council this evening on behalf of the Homer Alliance for Fresh Air and thanked the Council for their willingness to address this important health issue of second hand smoke, here in Homer. He emphasized that second hand smoke is the third leading cause of preventable death in the United States, adding that over 53,000 people die prematurely each year. He read a short excerpt from the Phillip Morris USA webpage: APublic Health Officials have concluded that second hand smoke from cigarettes causes disease, including lung cancer and heart disease in non smoking adults as well as causes conditions in children such as asthma, respiratory infections, cough, wheeze, otitis media (middle ear infection)and sudden infant death syndrom. In addition Public Health Officials have concluded that second hand smoke can exacerbate adult asthma and can cause eye, throat and nasal irritation. Phillip Morris believes that the public should be guided by the conclusions of Public Health Officials regarding the health effects of second hand smoke. We also believe that the conclusions of Public Health Officials concerning Environmental Tobacco Smoke are sufficient to warrant measures that regulate smoking in public places.@ Mr. Boone asked the Council to please bear this in mind when deliberating Ordinance 03-63.

Howard Grevemberg stated that as a tourist area Homer should be accommodating at all life styles, should be open to a variety of people who come to Homer and there should be choices of smoking and non smoking rooms, restaurants, charter boats, cabs and other activities. He stated that there should be choices in shopping, sports and non sport activities. Mr. Grevenberg advised that as a tourist who smokes he would not feel welcome in a town where he would have difficulty finding accommodations to fill his needs, adding that many tourists come from areas where there are no restrictions at all. Mr. Grevenberg asserted that this is going down a slippery slope and wondered what would come next, diabetics, people with heart problems, fat people, gay people and asked what if the next Council does not like white bread, does it get banned. He commented that, as his wife stated in a recent letter to the editor, there are many groups across the nation who want to ban such things as guns, nativity scenes, Christmas plays and programs, Santa, Thanksgiving, pilgrims and Indians and PETA (People for the Ethical Treatment of Animals) wants to ban fishing, because it hurts the fish. He asked the Council if Homer is going to be a town that stands up for Civil Rights, a tolerant society welcoming everyone, or is Homer going to become a community that no one wants to live in or to visit. He thanked the Council.

Katie Dawson, resident of Homer area, voiced her support of the smoking ban, noting that tobacco smoke is a proven deadly killer, the poison may take years to kill some, but kill it does. She stated that for every eight smokers who die as a result of smoking, one second hand smoker dies. She advised the Council that smoke eaters and other filters do not work and only take some of the poisons out and leave the tar behind, of course the non smoker could stay outside, but that=s no choice. She emphasized that smoke does not know to stay in designated smoking areas, thereby giving the non smoker no choice. Ms. Dawson commented about pregnant women being affected by second hand smoke, with no choice. She stated that Councilmember Stark=s Ordinance is like wearing half of a seat belt, appearing to give choice to non smokers and is really only half a choice offering no protection at all . She stated that Homer=s job pickings are as slime as a tongue depressor turned sideways, even more difficult to find a job with medical insurance, and that one cannot just leave a job because someone is smoking. She addressed the situation of a working mom, or a pregnant woman working who takes a chance of killing her child with the second hand smoke. She shared more reasons for having smoke free places and shared some of her own experiences with working in places where smoking was allowed. She clarified that she is not trying to disrespect smokers needs to smoke, but this is a proven addictive and poisonous substance that kills. She encouraged the Council to at least do this for the children and provide them a place to grow up healthy. She noted that arsenic in food is not allowed nor is releasing carbon monoxide into buildings.

David Raskin thanked the Council for this opportunity and encouraged the Council to act favorably on the Ordinance to prohibit smoking in public places, a serious public health problem especially for employees who are forced to breath second hand smoke where they must make a living. He advised the Council that Homer lags far behind almost a dozen Alaska communities such as Soldotna, Kenai and Anchorage in addressing this pressing health issue. Having lived, for twenty seven years, in a state that prohibits smoking in all public buildings including restaurants, bars, and taverns he advised that he could attest to the fact that the economic benefits to all outweigh the strident complaints by smokers about inconvenience. He pointed out that this is not a matter about individual rights any more than states requiring restaurants to meet health standards in their kitchens infringing on the rights of those who prepare and serve meals to the public. He noted that the fact that forty percent of people don=t wash their hands after using the toilet does not mean that it is an infringement upon their Civil Rights to require them to wash their hands when they work in a restaurant any more than preventing smoking to protect the workers. He emphasized that public health and welfare is a responsibility of government and he urged the Council to approve the anti smoking ordinance. He suggested that to simply post warning signs would mainly maintain a status quo and economically discriminate against restaurant owners who take steps to protect the health of their employees and clientele. He voiced his opinion that no sign is needed outside a smoking restaurant, only a whiff of a customer leaving that establishment is needed, adding that their hair, clothes and lungs are filled with the smell of this poison that affects everyone entering that establishment. He cited an example of an hepatitis outbreak in a restaurant in Pennsylvania that inspires immediate action. He emphasized the fact that smoking kills tens of thousands, which should make the Council act now. He thanked the Council.

Jay Marley, Dentist in Homer, advised that he was born, raised and now works here and has dedicated a large part of his life to improve the health of the people in this community. He reported that may cities have passed Ordinances against smoking in public places; Anchorage, Kenai, New York City, and the State of California. He addressed the debate of businesses losing patrons as a result of a smoking Ordinance has never been substantiated and in fact, has often been reported that commerce for business has improved after the passage of such an Ordinance. He commented on having seen the destruction of cigarette smoke first hand in his practice and that it is undebatable that cigarette smoke is the primary cause of diseases such as emphysema, chronic bronchitis, a host of cardiovascular conditions, asthma, and irritation to the eyes and nasal tissues. He noted that asbestos is no longer permitted in building construction, radon is unacceptable and there are vehicular emission standards, all causes of the same diseases that smoking and second hand smoking are responsible. He pointed out to the Council that they now have the opportunity to prevent people from developing future diseases and voiced his hope that each Councilmember sees this as a public service obligation to improve the living and health standards of Homer. He thanked the Council.

Daisy Lee Bitter advised that she came to speak about health too, water, regarding Memorandum 03-201. She noted that in pursuing this she thought it might be a good idea to look back in the comprehensive plan:

Homer has a single source of water, the reservoir where it dams Bridge Creek. Water supply and distribution in the Homer area must be addressed by this plan, that of protecting Homer=s water source from contamination.

Objective 1. Ensure continued uncontaminated water supply.

Policy 1.1. The City shall protect and enhance the Bridge Creek Watershed its only source of community water.

She advised the Council that she is here because it came to Atheir@ attention that the Palmer Pines was being subdivided and there were two lots in there, 4.6 acres each, wetlands that drain directly into South Bridge Creek, which then later flows into the reservoir. She conceded that people are not supposed to build on those wetlands yet there are so many violations that it is really scary with the vision of a cabin and outhouse plunked behind it toward South Bridge Creek. She reported that some of the members of the Alaska Coastal Study decided to put their money where their mouth is, formed a Committee and got some pledges, the idea was endorsed by the Committee and Board endorsed the idea and the Board of the Alaska Coastal Studies agreed to purchase the property. She emphasized that many of the contributors do not live in the City and that this issue does not just affect City residents. She encouraged the Council to approve the request for monetary assistance and that it is reasonable that the Council ask the Center for Alaska Coastal Studies to protect this property in perpetuity and that provision be made for a raised boardwalk and maybe a gazebo. She noted that this property is adjacent to the Wynn Nature Center and would add an educational component to benefit the children in Homer, in Alaska. She mentioned that this would add a educational component for wetland studies and would also add to the moose habitat, being part of the broad moose corridor.

James Donnelly advised that he has a PHD in Physics, pointing out that this makes him a scientist and that he had attended the meeting the other night in the Homer High School Commons on Coal Bed Methane (CBM). He relayed his comments that CBM drilling is different than Prudhoe Bay Drilling, and that by the logic of science, or the model he uses, a good model, does not yield much gas as compared to Prudhoe Bay. He related this to a pop bottle not yielding much carbon dioxide being a physical process and an alka-seltzer tablet does since it is a chemical process. He informed the Council that Prudhoe style gas drilling is alka-seltzer like, producing a lot of return and CBM is more like the bottle gas type, producing very little. He advised that his remarks will be in the news outlining this in great detail. He voiced his opinion that the important thing to mention to the Council, not knowing how savvy or ignorant CBM drillers are regarding the low yield they will get, that the CBM drillers will not get much gas from Homer. He pointed out that the hyp on returns all comes from outside where there are hundreds and hundreds of square miles of bottle type CBM yields. He suggested that these drillers like Homer and Wasilla, because the infra structure is very good for them; Homer has a dock and roads so that research and development can be done here without really intending to get much gas. He voiced concerns regarding the effects to the water supply and that Homer cannot afford to have these drillers do research and development in Homer. He voiced support for the Resolution 03-147 and efforts to buy back the leases in Homer and if other communities want CBM that=s fine.

Mark Cooper advised that he runs Kachemak Bowl in Homer, one of the affected businesses of the smoking ban ordinance, if passed. He reported that Kachemak Bowl currently has non smoking activities such as open bowl, family bowl and no smoking any time kids are around. He noted that he is primarily funded by his adult night leagues and half of those still have smoking allowed and all but one of the smokers huddle around the exhaust fan in the back of the building. He told the Council that they have already dealt with this issue and really do not need any help making it anything than it already is, adding that there are no victims and everybody is happy.

Bob Keys reiterated his comments from the last meeting, that they have a non smoking tourist business and do provide a smoking area. He commented that he quit smoking about thirty five years ago, having started when he was about eight years old, that he grew to be a full sized person in good health. He voiced his opinion that people who smoke should have the right to smoke in authorized places and business owners should have the right to decide whether or not they are going to be smoking or non smoking or have designated smoking areas. He advised that he goes to the Duncan House regularly, a smoking establishment, and that it does not bother him.

Mimi Tolva stated that she has asthma, bad allergies, is very much affected by cigarette smoke and has lost several people very near and dear to her as a direct result of cigarette smoke. She stated that, although she hates and dislikes cigarette smoke, she does not feel it is the City=s place to tell people how to run their businesses and that she and her kids can get up and leave if someone is smoking. She commented that there are places she and her children do not go due to cigarette smoking. She urged the City to think long and hard before getting into the health police business. She pointed out that sometimes in Homer it is hard to make a living in the winter and additional burdens do not need to be placed on business owners. She suggested that if the City decides that it does want to get in the health police business there are a lot of other things that can be done to ensure the health and longevity of our community members such as; monitor fat and sugar intake, make sure everyone gets the right amount of exercise and takes their vitamins. She stated that her suggestion would be ridiculous and this smoking ban is ridiculous.

Tanya Nordell, ORCA Building owner, stated that she is here to speak about choice, that she came to express her discontent with the smoking ban issue and that she sees this as an issue, not of second hand smoke, but of governmental control. She stated that smoking is a non criminal personal choice activity. She advised that it was her choice at twenty three to begin smoking, having bronchial asthma and not the smartest choice she ever made, as it was her choice fourteen years ago to quit. She relayed her personal choice to not smoke around children, not to go to smoking eating establishments, and that she would exercise her right to stay home and cook for her family if smoking eating establishments were the only ones available. She voiced her opinion that it is a parent=s responsibility to protect their children. She suggested that employees who are concerned regarding second hand smoke at their place of employment that their first question should have been if smoking is allowed and then decide regarding employment accordingly. She cited some personal examples. Her comments were interrupted. See foot note.

Mayor Cushing called for a recess at approximately 7:46 p.m.^[1] Mayor Cushing reconvened the meeting at 8: 25 p.m.

LADD/NOVAK - MOVED TO RECESS TO DECEMBER FIRST AT A TIME TO BE ANNOUNCED.

VOTE: NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

Mayor Cushing Reconvened the Regular Meeting, called to Order on November 24, 2003 at 7:02 p.m. on Monday, December 1, 2003 and announced the continuation of the Public Comments upon Matters already on the Agenda. He stated that those who had not commented on November 24th were allowed to comment at this time.

Mayor Cushing expressed condolences to the Bob Keys family on behalf of the town. He asked for consensus of the Council to allow Mr. Keys son, Dan Messler, to address the Council first.

Dan Messler informed the Council that Bob and Barbara Keys had adopted him several years ago and that the family had asked him to come tonight to report that Bob had a heart attack due to complications of diabetes and the medicine he was taking. He emphasized that his dad=s death had nothing to do with cigarette smoking. He stated that he and his mother felt that the papers had kind of used this situation implicating that his dad=s death was due to cigarette smoking. He confirmed that his dad did have a good heart. He thanked the Council for their time and that they wanted to correct the statement in the paper.

Mayor Cushing thanked him for coming down and reiterated condolences. There was a round of applause from the audience.

Tanya Nordell continued her comments and reiterated what she had stated on November 24. She shared personal experiences and personal history. She emphasized that the smoking issue is a personal choice and not something for government to set rules, the very thing that people were fleeing from when coming to America years ago.

Findlay Abbott, Yukon Island resident and lot owner in Homer, voiced support of the Resolution to buy back the Coal Bed Methane Leases and that this was just completely outrageous for the leases to have been put out under private homes and lands without study and analysis, which shows how much the state is business oriented or industry preferential. He also voiced support of the ordinance to limit smoking in public places.

Dan Lush, lives in the Methodist parsonage, stated that he sure is happy that science has revealed so many things that are dangerous that were not known, and that many appear to still not know about many of the dangers in the world due to the chemicals that are around. He voiced appreciation for the education so that people can make better choices. He urged the Mayor and Council to support the clean air Ordinance in public places, acknowledging that this is a challenging issue for some people. He commented about his non smoking daughter that manages a restaurant with an adjacent bar that allows smoking. He voiced his belief that second hand smoke is dangerous and that many people are still unaware of the dangers and want to deny that it is a health risk. He voiced his hope that Council=s actions will make it so that his daughter does not have to face the choice of leaving her job to work someplace that is safe. He stated that he hears lots of parents voice hope that when their children go away to get an education that they will come back, as his daughter did. He suggested that this is a Sophie=s choice his family is facing. He commented about the restaurant owner freedom and that people have told him they want to quit yet are unable to, therefore, seems more like compulsion instead of freedom. He asserted that if people who are hooked on a drug are allowed to set community standards there would still be drunk drivers legally driving down the highway and all manner of substance abuse. He shared ministerial experience with smoking related cancer patients. Mr. Lush urged the Council to please support sensible standards to protect workers and the public from known carcinogens. He suggested that the real heros are smokers who tell others not to take up smoking and those who take their smoking outside away from others, instead of those who whine and cry that they have the right to blow smoke in any public place of their choice.

Reuben Sherwood advised that he is a non smoker and apologized to the Council for having to speak tonight. He voiced high regard for many of the supporters of the smoking ban; however, the promotion and quotes of the Alliance for Fresh Air in a recent Daily News article crossed all boundaries of decency, the Alliance has shown no respect, therefore, they no longer deserve his. He commented about a quote of a Councilmember in a local paper that Homer should pass this ban because it is such a liberal town. He stated that supporters stated that a thirty percent increase is a cause to preempt civil liberties, that these tactics are not new, fascism promised and delivered lowered incidences of crime as did the laws of Shuree. He suggested that disciples of these and other beliefs use the health of the community as more vital than the rights of its citizens. He voiced his opinion that a Councilmember claims to support a well funded organization=s campaign to eradicate liberty as a duty of a liberal population. He stated that he does not know most of the Council, that he cannot guess their intentions and suspected that they are honorable, which does not mean justifiable. He relayed other situations and wondered where this health scare would end. He encouraged the Council to derail this incremental trains, which. have in the past lead to real trains. He thanked the Council for their time.

Merlin Cordes, tax payer, addressed the Mayor, Council tax payers and tax collectors of this community, voicing understanding of the sincerity on both sides of the smoking controversy. He shared his wish that the City government get back to basics of what government is responsible, to provide for the people what they cannot provide for themselves; water and sewer, roads, police, fire protection, etcetera. He voiced his opinion that all too often the City is bogged down with such matters that should be resolved elsewhere. He reiterated his comments, from a previous meeting, regarding City revenue short falls and the sales tax loop hole, adding that he wished all the tax payers here speaking on the smoking ordinance were as knowledgeable about the sales tax code as they are about smoking statistics. Mr. Cordes emphasized that amount of sales tax money, due to a loop hole in the Borough Sales Tax Code, that lost the City over one million revenue since 1990. He asked if tax payers want to hear about smoking or about collecting $80,000.00 that will just drive up the road with the tourists as they leave next summer. He commented on the responsibility of the individual regarding smoking, wondered if government has to make all of these decisions for individuals and how many more laws and ordinances are people going to have to live by. He stated that individual freedom has been fought for in the American Revolution, Civil War, World Wars I and II, Korea and many others. He stated that if all of the people in this room spent more time teaching and working with their children to bring them up with proper respect, good health habits and respect for others and property the smoking problem would probably eliminate itself in less than a generation. He commented about hating smoking and his personal experience working with teachers who smoked in the teacher=s lounge, that he circulated a petition and got smoking banned from the work room. He advised that when he owned the Driftwood Inn he was one of the first to go non smoking, and that it was an economic impact that was his decision. He noted that small business has had too many rules, regulations, laws and restrictions as he found in the selective enforcement of the sign ordinances. He asserted that the lack of a zoning ordinance has slam dunked small businesses and that there were other cases where new businesses have been prevented from starting. He reported that Bob Keys, as a Marine, fought for his Country and the rights of individuals for freedom and that his numerous differences with the City, sole proprietorship and individual freedoms created stress and anxiety for him. He voiced his opinion that business is going to lose again, adding that the City of Homer has been criticized more than once about being non business friendly, yet the businesses collect the sales tax for City revenue. He agreed that smoking is a serious health issue, in a few years obesity will be the public outcry and insurance companies are already doing a weight, height and age analysis calculations and setting rates accordingly. He suggested an Ordinance to prohibit people weighing over 200 pounds from eating at McDonalds, which singles out people. He queried if smoking restaurants are being singled out for some underlying reason. He relayed some study information that shows that second hand smoke is not as harmful as previously thought, perhaps equal to that of breathing smoke from beach coal or beetle killed spruce. he stated that a solution to this Ordinance is no smoking in government buildings where the tax dollars are paying the bill, no smoking in any business that receives a grant, no smoking in any non profit run corporation, no smoking in buildings of corporations that have numerous employees and that the government stay out of the sole proprietorship business. He stated that supply and demand will dictate the success of small business over the years and common sense or some basic human intelligence should be enough to make a decision on whether or not to enter a smoking establishment. He queried at what point will government quit trying to protect people from their own stupidity and that he does not want his tax dollars paying for that.

Chris Fisher, operates a taxi cab company, advised that he was a little confused when he saw taxi cab companies being lumped in with restaurants and everyone else on this proposed smoking ban, since there is really not a second hand smoke issue with taxi cabs. He reported that the way taxi cab drivers operate is that it is the driver=s discretion as to whether or not smoking is allowed in the taxi, if the driver and passenger agree that smoking is okay there is no second hand smoke issue and obviously, a driver would not smoke in the taxi with a passenger who does not want smoking, this would be bad business. He stated that this Ordinance has nothing to do with taxi cabs, because of the one on one with passenger and driver. He voiced his opinion that taxi cabs were included because, the people who crafted this law did not really do their research and there are a lot of vagaries that really need to be straightened out.

Teresa Connor, resident, thanked the Council for taking the time to listen and voiced her support of the ban of smoking in public places. She shared her frustration that the whole issue has gotten confused into a government control thing and emphasized that it is a safety thing. She stated that it is clear and simple - second hand smoke and public safety, and she does not understand how this has become such a philosophical argument. She likened this to laws about alcohol, while it is legal for those over twenty one it is not legal while driving, because it is a public safety law to protect others and is not an attempt to take away rights. She advised that she used to be a smoker, is glad that she quit and believes that those who are not ready to quit should not have to, nor do they need to put others at risk due to their habit or pleasure. She noted there are places to smoke, such as outside, that do not affect others with second hand smoke and that no one is trying to take rights away from smokers, they are just trying to protect themselves. She thanked the Council.

Bill Bell addressed the Council, humorously stating that he is going to give the Council a breathe of fresh air and talk about sewers, specifically the Ocean Drive Loop Sewer District. He stated that Oscar Munson and Cranberry are actually two separate subdivisions and that a few property owners on the north side created their area as a conservation area to protect that land and keep it from being developed. He told the Council that with the new sewer plan coming in they are being taxed very heavily for that, adding that they made a commitment to the Mayor, once, that they were not going to develop that land thus making it possible for the City to get the EVOS money and purchase the forty acre piece in the middle of the slough. He suggested that the way the project is designed it would make it very easy to leave off the one segment of the sewer line, that feeds the land that is a conservation easement, and still maintain those on the south side of Oscar Munson that very much want the sewer, deserve it and who have been trying to get it for years. He did a little figuring ala Bob Hoedel with East Road Sewer and figuring out his life span and that if this sewer project goes through his is looking at about "1850" a flush for his life span. He encouraged the Council to split up this LID and leave their part of this project out it for awhile and give the project to those on the south side who really need it for high density housing over there.

Pam Fields, resident of the community about twenty four years, told the Council that she is a non smoker and is very much against smoking and a lot of other health issues, adding that she is a Mormon and does not even drink coffee or tea. She stated that she does not like the stench of smoking, but does believe that people have the right to personal freedom and that she does not have any trouble at all finding fresh air to breathe in Homer. She noted that smoking has been a popular thing to do in our Country for a couple of centuries, despite this, people are living longer, getting taller and healthier with every generation. She commented on growing up in a smoke filled home, that her father smoked continuously and that she is very healthy. Ms. Fields stated that since she does not smoke she avoids places where people do smoke, but would no more deprive folks of their freedom to smoke than she would force their religion on the them. She asserted that this is not an issue of fresh air, there are power hungry people in this country who would have us voluntarily give up our freedom an inch at a time. She agreed that tobacco is bad for the health, but educating people is a far better way than taking away the freedom to choose. She stated that business owners need to have the freedom to run their establishments as they see fit, adding that our country was the land of freedom. She voiced her hope that we have the intelligence to keep what freedom we have left. She encouraged the Council to let the businesses decide whether or not they will allow smoking, pointing out that there already are plenty of smoke free places to go. She told the Council that she would love to live in a land that was smoke free, alcohol free, drug free, oath and tax free, and gambling free, but only if the virtues were voluntary. She voiced her belief in the freedom that our forefathers fought for, freedom to choose.

Nina Faust urged the Council to pass Resolution 03-147, supporting a buy back of the all the Coal Bed Methane leases in Kachemak Bay and urge reform of the legislation that removed the local oversight from this leasing program. She noted that passing this Resolution would send a message of solidarity from this community, that there are many concerned about the way these leases were let, including the lack of notification to residents, the removal of local government from the process and the potential for damage to one the most important resources, water. She emphasized the Homer area=s long history of seeking a sustainable economy built upon tourism, the area=s natural beauty, the arts and a growing retire community has led this community to fight off oil and gas infra structure for decades. She voiced her opinion that Homer is the conscience of Alaska and as such should send a strong statement to the state government that buying back these leases is the right thing to do. She commented in support of the Ordinance to ban smoking in restaurants and most other public places, adding that the state has implemented regulations to assure the cleanliness of food served in restaurants and in light of the overwhelming evidence of the toxicity of second hand smoke she did not see any reason why clean air should not be expected in these establishments. She agreed that it is a public health matter with great benefits to the overall community, the majority of which do not smoke . She stated that it will be great relief to go into any restaurant and not have to worry about smoke, and would be nice to try out some of those other restaurants that she now avoids and hears that their food is pretty good. She also voiced support of Memorandum 03-201, that contributing to the purchase of property next to the Bridge Creek Watershed is for the conservation of this land is an excellent idea especially since is next to Homer=s water supply. She thanked the Council.

Tara Moss advised that she is concerned about smoking as an health care provider and that her experiences have led her to come before the Council to urge them to vote to make public places smoke free. She stated that her greatest concern is for the welfare of children and that has not been addressed enough, these are people who are not able to give a choice, and children=s bodies are more susceptible to toxic exposures. She relayed that this issue to her is about individual faces and shared a story of a fifty year old woman who died of terminal cancer and who had been around second hand smoke in the work place. Ms. Moss emphasized the negative health effects of second hand smoke. She reiterated some of the statistics shared with the Council and supplied to the Council, adding that no one is immune. She urged the Council to at least let Athem@ make wise choices for those who cannot.

Tony Stanfill, resident of Homer, stated that for the last eight years he has worked in several of the area=s restaurant and bars, including being in partner in the business of the Saultry across the Bay. He voiced strong opposition to the smoking ban. He acknowledged hearing that this ban does not extend to bars and bars with restaurants, however, if this is passed it will only be a short period of time before it includes bars and bars with restaurants. He advised that his concerns are from his experiences within the service industry and California as a waiter when their ban happened: The pro ban side claims that there were no losses in business, if true, fair enough.

The ban in California happened during an economic boom and the weather in California is a lot warmer so those restaurants and bars already had outdoor smoking sections.

He commented on the 15 or 25 feet of distance from the door and that the distance just does not seem right, with the cold weather and he also commented on the dine and dash that can happen with that distance, and did happen at least once a night in California. He noted that it is hard enough for a bartender to police the bar, let alone the parking lot, sidewalk, behind the building and down the street. He reported on the conscientiousness of bar tenders with trying to keep people from driving drunk and the concern that when someone, who should not be driving, goes out to just smoke a cigarette and who may get in their car and drive away. He emphasized that cigarettes are still a legal substance and no one forces anyone into any business and it should be up to the individual owner to decide and no one forces anyone to work any where. He stated we are Americans, we have choices. He suggested that if the Council does decide to take on this public health issue, he fully expected ratification of everything bad:

Alcohol.

Highly process foods.

Cooked foods, these add just as much carcinogens, as a lot of other things, into our bodies.

The sun, it causes cancer, get rid of it and ban it.

Exhaust out of cars, adding that he does not drive never has and has to breathe everyone else exhaust fumes as he is walking down the street. He asked: Can we somehow redirect the exhaust fumes so it is all on them and not on me?

In California, the air was unhealthful, daily and this did not have to do just with cigarettes. He stated that this is why he believes the smoking studies are all flawed because they are only looking at one pollutant, not at factory smoke stacks, not at car exhaust, or paper mills, etc.

He stated that if he is not believed, he would like to invite everyone here tonight to his house to go in the garage and smoke two hundred cartoons of cigarettes and walk out alive, yet bring a car in and no one is walking out. He told the Council that if they pass this Ordinance they are forcing the businesses to ban something that is legal. He reported that his father died of lung cancer, who did not smoke or hang around smokers, but was a mechanic. He expressed his opinion that this Fresh Air Alliance is looking at one thing.

Emily Ward noted the email she sent and voiced her support of Resolution 03-147, to buy back the Homer area Coal Bed Methane Leases, adding to her written comments that she is concerned that property values will go down if the Coal Bed Methane were to be developed and that her property is in the lease area. She asked if any of the Council would like to buy a house that has a Coal Bed Methane drilling pad and equipment next to it, or on property next to her property. She voiced support of the smoking ban for public places and agrees with those who like to breath smoke free air in restaurants and that no one should be allowed to endanger the lives of employees who may not have a good choice where to work. She stated that it is easier for smokers to go outside than for someone to uproot themselves and move away to look for a job. She urged the Council to ban smoking, adding that it is a public health issue.

Jeanne Walker urged the Council to pass the Resolution to buy back Homer area Coal Bed Methane Leases. She advised that after living and working in Alaska for twenty six years they moved to Homer and purchased a home in a quiet residential neighborhood and came to find out it was in the lease area. She stated that they, the seller, the realtor and the title agency did not know that this property was in the Coal Bed Methane lease area. She guaranteed the Council that they never would have bought this home had they known it had been leased for shallow gas development. She noted the lack of public notice and process are unconscionable. She commented that this is only one of the concerns for this industrial development.

Barbara Peterson commenting on the Ocean Drive Loop Sewer district said that it never occurred to them that there really were differences in the little peninsula that seems so insular and that what ever they did they all did together. She asserted that Ocean Drive Loop South has had more development, housing development there and have different issues to deal with than does Ocean Drive Loop North, which has the slough, tidelands, wetlands and a great desire to keep the trees and the natural habitat in that area. She stated that the present plan, passed by the majority of people who voted, requires that there will be a lot of trees going down to make this gravity feed work and that it is going across land of six or seven property owners in some fashion. She asked the Council to think about this carefully, if there is a way that this LID can be broken up into smaller LIDS so that the property owners can work on this in their own area to achieve something that is meaningful and that works for them. She stated that they would be most grateful and definitely applaud and encourage that the LID be in effect for those on the south who have worked these past ten years to make this possible. She thanked the Council.

Karen Shemick advised that she is very interested in protecting the health of people in public places and in their work places, adding that she works with pregnant mothers and families with young children. She shared her awareness of the risks and problems caused by exposure to tobacco smoke and that by not having a clean air Ordinance in Homer, a health problem is being perpetuated. She voiced her opinion that pregnant moms and developing babies who are in the work place are not presently protected in Homer, when they get big doses of toxic smoke every time they go to work the community has done them a disservice. She relayed some information and stated that it is a documented fact that children subjected to second hand smoke are ill more often. She emphasized that second hand smoke is a toxic pollutant and third leading cause of preventable death in the United States, eliminating such a serious threat to public health needs to be addressed by local government. She encouraged this responsibleness in Homer. As a mom, Ms. Shemick shared her concern about the growing number of young people who begin smoke tobacco every day, cited some statistics and encouraged early community training of children on the deadliness of smoking, which will contribute to the healthiness of our society for generations to come. She emphasized the need to pass a clean air Ordinance to begin the process.

Scott Connelly, resident of Homer and non smoker, urged the Council to not modify the existing smoking ordinance and that he did not believe the Council should be controlling individual=s choices about their health. He pointed out that there are many more non smoking establishments in Homer than smoking establishments, adding that no body forces non smokers to patronize a smoking business. He voiced his firm belief that a private business owner should be able to run their business as they see fit and that employees should have the same ability to choose. He stated that just because a non smoker decides to work at a place that allows smoking it does not give that non smoker the right to control how that business will be run. He urged the Council, emphasizing that it is important, to verify all statistics put before them and being advertised in the paper and urged them to keep in mind that it is very easy to pick and choose statistics to suit a particular agenda. He noted that even smoking establishments are almost smoke free during the day. He said that he is sure that the anti smoking statistics are the worst that could be found. He told the Council that the health awareness campaigns are working. Mr. Connelly reported that he asked Dan Boone about the source of the data and was told that it is a 1991 study, not that old, but over a decade old. He encouraged the Council to take the statistics with an grain of salt. He assured the Council that it is okay for people to be different, for people to have different likes and dislikes and that it is okay to congregate with like minded friends. He stated that we do not have to become a homogenous society of health police, and told the Council to keep their laws off his body.

Sharon Whytal, resident of the City, stated that she is for clean water and fresh air. She applauded the Resolution to buy back the Coal Bed Methane leases and encouraged the Council to support this Resolution. She, as a health care worker, expressed her surprise that there is still any debate about whether smoking is dangerous. She voiced understanding about the questions about Civil Rights, adding that she does not like to see Civil Rights compromised at all, but that she does not see harming others as a part of Civil Rights. She stated that if this was about chewing tobacco she would be happy to have it everywhere, emphasizing that it is the smoke that harms people. She noted that children cannot make the choice and that she is one of those people that is an example of the harmful effects of second hand smoking. She likened this to drunk driving wherein alcohol is okay, but putting other people at risk is not okay. She asked the Council to please support the Ordinance change.

Carol Charot voiced support of the Ordinance to ban smoking in public places and that she does not want to have to breath second hand cigarette smoke. She stated that she believes it is a good Ordinance and that it will protect people from second hand cigarette smoke. She said that she did not agree with just posting signs as an alternative and would not protect people at entrance areas. She commented on the choices, such as being invited out to eat at a smoking restaurant and that she does not like being in this type of situation. She expressed non objection to government stepping in and that she does need this protection from second hand cigarette smoke. She voiced her hope that the City Council would pass this Ordinance.

Dr. Bill Marley stated that he is here to speak about the clean air Ordinance and is in favor of the Coal Bed Methane buy back, adding that he has been disappointed with how the state has handled this and that he has some real environmental concerns as well. He advised the Council that he has practiced dentistry in Homer for thirty seven years. He observed that, for anyone who practices any aspect of medicine, those who serve in the public health are the most sophisticated, make the least amount of money, receive the least amount of recognition for their work and rarely receive a thank you from those they serve, yet may accomplish more than any other group of medical practitioners. He confessed that he never wrote a letter Dr. Salk or Dr. Sadin thanking them for the fact that he did not contract polio. He stated that because the very detrimental effects of second hand smoke cannot be prevented by injection or pill nor treated to satisfaction after its detrimental effects have occurred, the Mayor and Council are placed in the position of being medical practitioners and passage of this Ordinance will prevent disease processes that are debilitating and fatal to our bodies. He advised that when he votes for public officials he votes for two things, representation and leadership. He stated that representation is easy in his mind and leadership takes the most effort. He suggested that if all Councilmembers were representatives the essence of the City Council could be, almost, ran off the website with passwords and on line voting. He stated that representation is checking out which way the wind is blowing and then simply saying that is what one is for; whereas, leadership requires interpretation, evaluation, anticipation, salesmanship and courage. Dr. Marley relayed his experience that leadership is seldom respected. He reported that 75 % of the people do not smoke and 80% of the 25% who do smoke wish they did not. He commented about people wanting clean outdoor air and yet spend most of their time indoors, therefore, people should expect the same quality of air indoors. He reiterated the statistics and pointed out that these studies are not done by somebody sitting on a bar stool and are done by very credible institutions, the most respected in the Country. He commented that of great interest to him is that where Ordinances for clean air indoor exists the incidence of teens starting to smoke is significantly reduced and the facts are that if a person does not take up smoking until after eighteen, they are only 10% likely to start smoking thereafter. He stated that those who oppose the Ordinance have zero to offer in terms of any health benefit, those who signed the petition in opposition to this Ordinance were not told that to allow second hand smoke in businesses deprives others of their liberty and independence by compromising their health. He commented on the reported economic benefits to businesses in places where clean indoor air Ordinances have been passed and that it is extremely rare that such Ordinances have been revoked at a later date. He pointed out that there are many facilities, such as City Hall, in Homer wherein smoking is currently prohibited. He expressed his opinion that people know that a certain standard is going to be met in public facilities and can count on breathing clean air. He emphasized that this Ordinance is good, healthy and economically sound for all the people of Homer and those who visit our City. He thanked the Council.

Leonard Wells, property owner and Homer resident, voter and non smoker, objected to the ban of smoking in privately owned businesses and that private owners should have the choice the same as public facilities such as City Hall. He pointed out that cigarettes are legal and if Council decides this should be banned in Homer then they should also ban the sale. He proposed that this then would be illegal just like some of the governmental entities in Alaska ban the sale of Alcohol, also a legal substance. He commented that if tobacco sales are banned by the City, the sales tax would go away and it would not cut down on smoking, because people would just bring tobacco in from outside. He supported the Ordinance on the signage option, adding that just because he has a business it does not mean that anyone has the right to come in and that he can only ban someone for certain constitutional protected rights. He noted that smoking is not a protected right and if someone wants to go into a restaurant that allows smoking, because they have good food it does not mean anyone has the right to be there and if you don=t have the guts to tell someone who=s asked you to join them that you don=t want to go there then suffer the consequences of your choice not to speak up. He also voiced objection to the request for donation of the money to the Alaska Coastal Studies for the purchase of property in the watershed, seeing this as a misuse of tax money and that it should not be considered unless the City is going to get title to the property. He thanked the Council.

Annette Marley, resident of Anchorage and raised in Homer, advised that she has family in Homer and comes back as often as she can. She reported that she has been working with the Homer Alliance for Fresh Air on the clean indoor air campaign and that tonight she is representing the American Cancer Society, the American Lung Association, the American Heart Association and the Alaska Native Health Board. She thanked the Homer City Council on behalf of all of these organizations for taking on proposed Ordinance 03-63 and that, if passed, this may be the most important public health measure that the Mayor and the Council enacts during their tenure and is what many other policy makers have said about passing this type of Ordinance. She commented that second hand smoke may be viewed by some as a mere nuisance, to others a romantic nostalgic scene, but what has become very clear of the last twenty years is that second hand smoke is lethal and only ranks behind direct smoking and alcohol as a preventable cause of death in our country. Statistics:

Approximately 53,000 deaths occur from exposure to second hand smoke. 48,000 are deaths due to heart attacks, 3,000 from lung cancer, and 2,300 from sudden infant death syndrome.

She urged the Council, when reviewing this Ordinance, to keep three things in mind:

1 - Second hand smoke is regarded to be in the same class as hazardous substances, benzine, asbestos and radon, with regard to implications for health. One leading researcher referred to a burning cigarette as a mini toxic waste dump set on fire.

2 - Workers in Homer do not have a totally free choice of where they work and second hand exposure should not have to be a condition of anyone=s job just as asbestos exposure is, hopefully, not any longer.

3 - These laws are wildly popular. Again and again there is an increase of public approval of the enactment of these laws.

She reported about a poll conducted in Homer last November it was learned that 61% of voters in Homer approve of this type of Ordinance. She pointed out that it is known that restaurants and other businesses continue to thrive after these types of Ordinances take effect. She thanked the Council for taking on this Ordinance, adding that she would be happy to serve as a resource for informational needs.

Dan Olsen thanked the Council for their time, advised that he is a non smoker and has a business down town and is against this proposed non smoking Ordinance for a few reasons, this Ordinance is not a draw for Homer and it is not attractive to commerce. He suggested that if there is a genuine concern for the health of employees then why is there an exemption for any bars or restaurants, emphasizing that it should be all or none. He stated that he has worked in food and beverage for twenty five years, twenty one in Alaska, and the statement about the lack of non smoking food and beverage positions is just not true. He commented that the hospitality industry tends to attract people who like to travel, work seasonally in different locations and this fact ensures work for someone who desires work in a non smoking facility. He expressed his feeling that this Ordinance is unnecessary, believes that 75% to 80% of the business owners reject this Ordinance. He asked the Council to please vote it down and thanked them.

Rick Norvell thanked the Council for their time, noted that he does not normally talk about anything out in the public and kind of keeps things to himself, but there is something about these two things that kind of get him going. He expressed his observation that Homer has been kind of dropping off the past couple of years and getting a lot more like outside with the regulations and all and that this really bothers him a lot. He voiced a lack of trust with the people involved with the Coal Bed Methane drilling and that he does not have enough of the information and does agree with the buy back, and if it turns out to be a really great thing then it can go the other way. He stated that this kind of rolls into the other item, the anti smoking Ordinance, that both of these are choice issues and that this really has nothing to do with anything else. He commented about hearing all the reports about second hand smoke, that he believes the reports and does not think that second hand smoke is a great thing; however, the bottom line breaks down to these are choice issues. He noted that he did not have a choice when they sold the land out from under him and that he could end up with a drilling rigs sitting right in the middle of his yard, although unlikely and has been told that he would have the right to negotiate. He acknowledge that he has the choice go into a restaurant or not, that Alice=s Champagne Palace is a smoking place, that he does not go there, that he would like too, but it is not his right to say that they have to change their business to suit him. He expressed his opinion that privately owned business does not have to bend to make something better for him, that parents should be responsible for their children and, that he would not take a child into a smoking place. He suggested educate rather than regulate, and asked where these regulations are going to stop, that this is going to just keep compounding. He voiced support for all or none and support of Councilmember Stark=s Ordinance as step one and that step two is to educate. He encouraged the Alliance to focus on education, adding that there were a lot of things, when he was smoking, that he did not know and now knows and it makes a lot of difference in the decisions that he makes. He thanked the Council.

Ray Kranich stated that he is a non smoker and his father died from throat cancer as a result of smoking. He advised that he is not here to debate the issues of second hand smoke. He voiced his opinion that Ordinance 03-63 totally disembowels Section 5.05 of the Homer City Code, of which he co sponsored and fully supported then and now, if it pertains to smoking on City property. He voiced his opinion that Ordinance 03-63 accomplishes nothing over 03-63(S), other than to put another notch in the handle of a nation wide alliance, which gives them more status for fund raising. He commented that upon reading the proposed amendments to 03-63, which have not been made yet, that he likes these; however, if this Ordinance is enacted upon the premise of public health it would be throwing the baby out with the bath water. He inquired, under definitions for attached bar versus bar, how that is determined. He queried is food service secondary to liquor, is it a bar, restaurant or if its food service is primary then is it a restaurant? He asked if the City was going to have the Fire Chief look at the books of the businesses and determine the dollar value of food sales versus liquor? He noted that there is no definition for vehicles, motorized or pedal, open or enclosed, loader or dozer or backhoe? He pointed out that in the current code even open skiffs, that the harbor has, are non smoking, so does the same line of thinking carry over to Ordinance 03-63? He objected to the Ordinance, but would go along, if necessary, with Ordinance 03-63(S) which gives people enough information to make an informed choice. He voiced his belief that the number one cause of preventable death in the United States, if not the world, is automobile accidents. He stated that if this Ordinance is that important for public health then it should be expanded into the private homes, where children spend most of their time.

Mayor Cushing called for a recess at 8:32 p.m., reconvening the meeting at 8:48 p.m.

Kevin Walker, fairly new resident of the area, advised that he bought a house in July and in August or September found out that it was leased for Coal Bed Methane. He urged the Council to pass the Resolution to buy back the Coal Bed Methane leases. He noted that House Bill 69 allows the State to bypass local control, that City planning and public process help to set the stage for responsible development and currently many of these leases cover residential and critical watershed areas. He urged the Council to please support responsible development and pass the Resolution on the agenda.

Chip Duggan, owner of Duggan=s Waterfront Pub, thanked the Alaska Alliance for Fresh Air for the pamphlet that they put out that has all the names of the smoke free restaurants and eating establishments and that there are over twenty five, lots of places for employment and to eat. He voiced his belief that it is the right of the owner of a business as to whether or not to be smoke free, as long as tobacco is a legal substance in the United States. He advised that he has been non smoker his whole life and freedom of choice is his right. He stated that he would be more than happy to put signs up that say smoking is allowed. He commented that statics show that less than 26% of the adult population in Alaska smoke and wondered where people are getting all of the second hand smoke, perhaps in their homes. He inquired why the Tobacco Alliance did not educate smoking parents about the apparent health risk to their children. He advised the Council that the Journal of the National Cancer Institute published a report in October 1998, by the World Health Organization, entitled, APassive Smoking Does Cause Lung Cancer - Do not let them fool you.@ He advised that the report goes on to say that the relative risk of a non smoker living with a smoking spouse is 1.16, for exposure in the work place the relative risk is 1.17 and these numbers correspond with the 16/17% risk of lung cancer. Mr. Duggan reported that according to the National Cancer Institutes own guidelines relative risk of less than 2 are considered small. The relative risk of lung cancer for people who drink whole milk is at a 2.4, more than 8 times the 17% from second hand smoke. He addressed the comments regarding no economic impact to banning smoking and suggested asking bars like Harry=s Hanover Square in downtown Manhattan, adding that it has closed due to losing 60% of its bar trade with the smoking ban in New York City or ask 60 of the 210 bars in Ottawa that have closed since the smoking ban was imposed. He reported that the Montreal Grand Prix has been canceled, tourism in Montreal claims that the Grand Prix brought in $50 million directly to the Montreal economy outside of Quebec, the race seen by over 300 million in over 144 Countries, and was canceled because of the lack, of sponsorship because the tobacco companies are not allowed to sponsor it any more. He commented on other reported information:

In Saskatoon, Saskatchewan - attempting a 100% no exemption smoking ban, which was all taken care of at an election. The anti smoking Mayor ended up in fourth place and the two anti smoking Councilmen went down in defeat.

According to an independent New York research company, an International communications research: One in ten jobs in the New York pub and bar sector have been lost since the City introduced its smoke ban in March and that two thirds of all establishments reported a decline in customers since the ban.

Mr. Duggan addressed the comments of the Alliance that there is no economic impact and that they have told him that they never have contacted individual businesses; therefore, he wondered where the information comes from that they are sharing. He told the Council that estimates report an average decline of 17% of waiters and waitresses in these establishments and a 11% drop in bartenders. He advised that he has articles about real people with real businesses, from all over the country, who have lost their businesses, about seven pages of establishments. He continued, these businesses have lost anywhere from 17% to 100% of their business. He offered to provide the Council with this written information. He voiced concern about the loss of jobs. He objected to the proposed Ordinance, stated that he believes it to be an unfair Ordinance and cited the example that now the Ordinance says his business can be a smoking establishment, yet what about Don Jose=s, where are his smoking customers going to go. He told the Council that there is nothing in the Ordinance for a compromise and that he does not understand how one place can be a smoking establishment and another cannot. He inquired as to who came up with the distance of twenty five feet, interjecting that the City part is fifteen feet and that there is an ash tray three feet from the door and wondered if this is in compliance. He asked if the City cannot enforce its own Ordinance how can it enforce everyone else=s. He addressed the portion of the Ordinance referring to Convention Centers, noting Land=s End, the Bidarka, American Legion and the Homer Elks. He pointed out that there is smoking allowed in the American Legion and the Homer Elks and inquired of there is a convention in these two places can people smoke or not. He emphasized that there are a lot of inconsistencies within this Ordinance. He informed the Council that the National Restaurant Association will not have a National Convention in California due to the smoking ban. He queried the Council on how this affects Charter Boats and how can someone get twenty five feet away from the cabin, or does it only affect these boats when in port? He also inquired about the under 19 rule, when state laws says that those under 19 can come into his establishment to eat if accompanied by an adult, or does this just affect CeCe=s place and not his. Mr. Duggan told the Council that he just does not understand some of this Ordinance. He thanked the Council for their time.

Colleen Wagner, employee at Duggans Pub, stated that she is a smoker and that she understands that at this point the pub will be exempt from this Ordinance and that she feels she has to speak out against the City Council=s attempt to infringe on private business owners= rights. She commented that the rewritten Ordinance now bans smoking in only a handful of businesses plus hotels and bed and breakfasts. She voiced her opinion that it is not right that Mark Cooper, owner of the bowling alley, will be forced to prohibit all smoking in his establishment, pointing out that he already has both smoking and non smoking leagues and doesn=t allow smoking when children are present. She asked if the bowling alley will go the way of the pool hall in Anchorage who lost 80% of business and subsequently went bankrupt. She emphasized that more places are needed for kids to go, not less. She inquired about the Duncan House and the Boat Yard Café and those who enjoy a smoke with their meals will surely patronize CeCe=s, currently the only restaurant exempted causing a definite economic down turn for those businesses. She asserted that the Council has many, many more important issues to deal with, this is wasting more City money, ie., tax payer money, currently estimated, according to Ms. Wagner, at over $5,000.00 in fees by the City Attorney in reviewing this Ordinance. She suggested that this money could be far better spent and perhaps used on the Hockey Rink or a teen center as Homer seems to have a growing crisis of Juvenile Delinquency. She urged the Council to please consider the long term economic effects to Homer. She recalled the results of the Nuclear Free Zone, adopted many years ago, wherein the Navy and lovely Navy dollars headed toward Seward. She asked that Homer not sent any tourist dollars there as well. She encouraged the Council to not adopt the Yourkowski Ordinance and to consider the Stark Ordinance as a more sensible and less intrusive Ordinance. She pointed out that more than 1400 citizens and100 business owners have signed a petition opposing this Ordinance. She commented about the testimony on effects to children, interjecting that it is against the law to purchase cigarettes unless 19 years of age. She told parents to take responsibility to make sure that their kids are not smoking and that if second hand smoke is so bad to not take their children into a business that permits smoking. She concluded that this is a personal choice not the Council=s. She thanked them for their time.

Angie Newby encouraged the Council to pass Resolution 03-137(S), forming the Ocean Drive Loop Sewer Assessment District, adding that before this evening she had not realized that she lived in Ocean Drive South. She noted that this is a very small subdivision right in town, that she did not know it was large enough to have a north/south, and that the average lot size is 10,000 square feet and that some of these lots do have wetlands. She advised that in spite of sizes and wetlands many of the undeveloped lots are being developed and that it is virtually impossible to develop a home site and have a DEC or engineer approved septic system. She pointed out that this LID was formed by property owners in the entire small Ocean Drive Loop neighborhood, these property owners were concerned about health and safety issues that come with failed septic systems. She elucidated the process; that this local improvement district was formed according to City requirements, adequate signatures were gathered, and there was a sixty day objection period. She acknowledged that some property owners are not happy with this LID; however, the majority of property owners voted to bring sewer to the subdivision. She commented that because this process has been followed to an absolute tee, this Resolution has no other course than to move ahead and that any changes to the districts now would actually be a change to the LID methodology itself. As an aside, she encouraged the Council to pass the Resolution on the Coal Bed Methane lease buy back, that she is a real estate agent in Homer and that she believes that the specter of these leases and all the uncertainties involved are having an adverse effect on properties. She noted that the real estate agents and the title companies were not aware of properties affected in that these leases were not recorded, other than the subsurface rights retained by the State of Alaska. She voiced her opinion that Homer has the ear of the Governor right now and support by local representatives and that the Council=s Resolution is very timely.

Ralph Crane advised that he came to speak on three items, most of which are points of order that there are a lot of opinions on some of the issues and that he really cannot say that he has an opinion on the smoking. He stated that he is a retired fire fighter of 35 years, that he was exposed to a lot of second hand smoke from trees, cars and houses and that he is just thankful that he made it through all of that with everything still working and lungs hopefully in good order. He voiced support of Council=s direction on the Coal Bed Methane, that he has not seen the latest version after the recommendations by the Borough Mayor, sharing his experience with Coal Bed Methane Leases where property owners are a beneficiary and do have a lot of strength and negotiation with the oil companies, the antipathies of what is going on in Homer and all of Alaska. He brought up a point of order on the Ordinance on smoking that the enforcement section charges the fire department with enforcement and he recommended that legal counsel check into this and that the fire department does not have any statutory authority to enforce anything other than fire safety law. He advised that he has not had an opportunity to speak with the Fire Chief, but suspects that he has other things to do and reiterated his recommendation. Mr. Crane commented on Ordinance 03-65, the burn barrel ban, that it is interesting to hear the issues about smoking and the clean air and that burn barrels probably pump out more tonnage in bad stuff, methyl ethyl ca-ca, then all the cigarettes lit up at one time in Homer. He voiced support of the direction the Council is going with the burn barrel ban and trying to clean up the air, however, that as a past Ordinance writer himself he suggested that there were some issues in the Ordinance worthy of note:

One of the whereas clauses says that burning household trash or waste is apparently illegal and that it definitely is not illegal and never has been by Alaska Statute for fire safety issue with DNR or DEC, adding that he validated that with DEC, out of Anchorage, and DNR, Soldotna Forestry.

The Ordinance needs some word smithing to meet the intent of the Chief.

Robert Cousins, with Judy Cousins at the table with him, stated that he lives out on the Spit and commented on the smoking Ordinance that he looks at it differently than a lot of others. He advised that he is a smoker, wishes that he was not a smoker and that when he was in basic training they said to fall out if ya got em and if ya don=t, mark time. He told the Council that he hates smoking and hates second hand smoke, but the real issue is not smoking and that if Council wants to ban things that are bad, then ban alcohol. He voiced his opinion that this is a freedom/right to choose issue and that banning these things is a micro management of society that is beyond acceptability as far as he is concerned . He pointed out that government has a roll and it is not to tell people what they should inhale and when to inhale it. He stated that he wished people did not smoke tobacco in bars and that he did not want a totally restrictive governmental body deciding which foot to march with first. He reiterated comments about choosing whether or not to go into businesses that allow smoking adding that freedom is a pretty cool thing, allowing individuals to make decisions on their own, a pretty important thing. He inquired about the Homer Land Security thing and asked if the harbor is going to be fenced and if so, is this going to work? He asked if this is just getting money to get money? He voiced his opinion that this is just nuts to fence in the harbor, adding that this will not stop anyone from doing anything, and will keep the locals from walking around, but that it will not stop terrorist. He asserted that the fencing does not make sense and that he does not understand. He commented about the beaches being chained off, that there is no access to the east beach. He recalled Emil, who died, crying because he could not get to the beach to fish, something he had been doing all of his life. He relayed from the Homer Comprehensive Plan regarding the beaches, interjecting if Comprehensive Plans are to be believed, Amaintain and protect traditional uses of the beaches along the Spit such as gathering coal, shellfish and others.@ ... Aopen space recreational uses shall be encouraged on the east and west side of the Spit, from the north end of the exiting harbor to the uplands, permanent structures in this area shall be discouraged.@ He queried what this means and how the City is actively encouraging the use of the east side of the Spit when it is now chained. He relayed comment from Bill Smith who said a person could wade out there. Mr. Cousins commented about being in front of the Beach Policy Task Force and the Planning Commission trying to get someone to listen to some logical, explainable position on why that east side of the beach is chained. He said that he cannot stand people who testify about their own little self interests, but that beach is right out behind his place and that he does allow people to access through his property and use the City=s section line easement. He advised the Council that he does not have a problem with the black marks on the logs, which depicts kids with barbecues, having a wiener roast or barbecuing marshmallows, but to the some of the members of the Beach Policy Task Force these are horrendously ugly marks on logs. He asserted that this is all perspective and that he would like to see the City take the perspective of the people for a change. He voiced a desire for government to go back to the way it used to be in the old days, that was Ainclusivity@ and not restrictive ordinances and covenants on everything.

Judy Cousins commented on the minutes of the Beach Policy Task Force a couple of weeks ago or something, where she saw some notes about a parking area on their property and that by the time she got home she was a little hot. She told the Council that they came down and Bill said not to worry about it, because that is not really what it means, and that she said to him, thanks and gee, now I feel better and now I can read the minutes and not be sure of what it means, because you=re telling me that the words do not really mean what they say. She advised the Council of the stack of COE permits that they have that deal with the back beach, wherein it says:

That public access will be provided along the section line easement and a limited parking area would be provided to facilitate bird viewing in this area. The site would be protected to prevent vehicle traffic encroachment as well as having signs posted to that effect. Once the parcel is in hand the applicant would donate it to the City of Homer for management.

She inquired if that two acre mitigation that was guaranteed in that COE permit has ever been transferred to the City of Homer. She commented about the access road, that State Troopers chase everyone away from, and if that has ever been dedicated over to the City, inquiring about the status thereof. She stated that it is pretty sad that this is their part of the beach and that they are present telling the Council to open it up to the public, it=s the public=s beach and not anyone=s private beach. She voiced disbelief to the chains and State Troopers posted. She asked what is being left for the kids. She thanked the Council.

Steve Rouse, resident of Homer for 11 years, commented that he must be getting old, since listening to this meeting has been the highlight of his evening. He advised that he is present in representation of a property owner in the Oscar Munson Subdivision loop area, Susan Francia, and encouraged the Council to adopt Resolution 03-137, authorizing the formation of the sewer assessment district. He noted that 51% of the people, property values, approved it and everything, as Angie Newby said, was followed to the letter, and its now done. He voiced his opinion that just because some people decide now that they don=t like the fact that the majority ruled, that they want to back out and believe that they have money or what they consider political influence to be able to back out of something that the majority of assessed property owners want in the area is unfair. He stated that this district should go forward as the Public Works Director has recommended, that these people are in the district and should quit complaining.

RECONSIDERATION

None scheduled.

CONSENT AGENDA

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

Request from Port Harbor Director Abbott to pull Resolution 03-146(S).

Request from City Clerk to set the public hearing date for the Mariner Village/Thorn Subdivision Water and Sewer Assessment District to January 12, 2004.

Councilmember Ladd requested that Items. B. B1, D. and I. be placed on the Regular Agenda.

A. Homer City Council unapproved meeting minutes of October 27, Regular Meeting. Recommend approval.

B. Ordinance 03-63 Revised, Of the City Council of Homer, Alaska, Amending Homer City Code Chapter 5.05, Smoking Prohibited in City Structures, Vehicles and Watercraft, to Control Environmental Tobacco Smoke in Public Places and Places of Employment. Beck. Yourkowski. Recommend introduction, conduct Public Hearing and Second Reading on December 8, 2003.

B. 1. Ordinance 03-63(S), Of the City Council Amending Homer City Code Title 5, Health and Public Safety, By Adding a New Chapter 5.051, Disclosure of Smoking/Non-Smoking Status in Businesses Serving the Walk-In Public. Stark. Recommend introduction of this Substitute Ordinance instead of Ordinance 03-63, conduct Public Hearing and Second Reading on December 8, 2003.

Yourkowski recommendation: To forward the revised ordinance and the substitute to Public Hearing on December 8, 2003.

Both Ordinances placed under Ordinances at the request of Councilmember Ladd.

C. Ordinance 03-64, Of the City Council of Homer, Alaska Accepting and Appropriating a State Homeland Security Grant in the Amount of 562,923.00, for First Responder Preparedness and Authorizing the Mayor and Chief of Police to Execute the Appropriate Documents. Mayor. HPD. Finance. Fiscal Note: Revenue and Expenditure Acct. 151-784. Recommend introduction and conduct Public Hearing and Second Reading on December 8, 2003.

Memorandum 03-189 from Chief of Police as backup.

D. Ordinance 03-65, Of the City Council Amending Homer City Code Section 5.20.030, Trash Burning--Approved Container to Prohibit Open Burning of Household Waste and Other Items not Permitted. Mayor/City Council. HVFD. Recommend introduction and conduct Public Hearing and Second Reading December 8, 2003.

Placed under Ordinances at the request of Councilmember Ladd.

E. Ordinance 03-66, Of the City Council Amending Portions of Homer City Code Title 4, Elections; Subsections 4.20.020(e) and (i), Questioned Ballot Procedure; Section 4.25.040, Tests and Security; Section 4.25.060 Voting Ballots; Section 4.25.090, Manual Counting; Section 4.30.030, Application for Ballot; Section 4.30.050, Materials for Absentee Voting; Section 4.30.060, Issuance of Ballot by Mail or in Person; Section 4.30.070, Casting Absentee Ballot; Subsections 4.35.010(e) and (f); and Repealing Section 4.25.050, Demonstration. City Clerk. Recommend introduction and conduct Public Hearing and Second Reading on December 8, 2003.

Correction on page three, line 107, about midway, the Aun@ portion of unable was placed in Astrike out@.

F. Ordinance 03-67, Of the City Council Amending the Official Road Maintenance Map of the City of Homer by Adding Greatland Street, 500 Lineal Feet, as an Urban Road. Public Works. City Clerk. Recommend introduction and conduct Public Hearing and Second Reading December 8, 2003.

Memorandum 03-190 from Public Works As backup.

G. Ordinance 03-68, Of the City Council of Homer, Alaska, Accepting and Appropriating a State Department of Community and Economic Development FY04 Mini Grant, A Cost Reimbursable Grant in an amount not to Exceed $30,000.00, for a Comprehensive Trails Plan and Authorizing the Mayor to Execute the Appropriate Documents. City Manager. Fiscal Note: Revenue and Expenditure Acct. 151-783. Recommend introduction and conduct Public Hearing and Second Reading on December 8, 2003.

H. Resolution 03-82(S), Of the Homer City Council Noting Public Works Acceptance of the Mariner Village/Thorn Subdivision Water and Sewer Improvement Project, Accepting this Project for City Maintenance and Forwarding the Assessment District to the Final Assessment Roll and Payment Process and Setting a Public Hearing Date of ~~December 15, 2003~~ January 12, 2004. Public Works. City Clerk. Fiscal Impact: Fiscal Impact: 50% HAWSP and 50% property owner assessments. Project was estimated at $610,693.00 with estimated assessments at $10,905.23 per parcel. Project cost as submitted by Finance is $528,544.95. At 50% property owner share the assessments per parcel are $13,909.08 or $6,954.54 per utility. Suggested payment date: April 1, 2004. Recommend adoption.

Memorandum 03-191, from Public Works as backup.

Memorandum 03-202, from Finance Director as backup.

I. Resolution 03-137(S), Of the City Council of the City of Homer, Alaska, Authorizing the Formation of the Ocean Drive Loop Sewer Assessment District and Authorizing the City Manager to Proceed with the Preparation and Construction of the Ocean Drive Loop Sewer Project City Clerk. Fiscal Note: Total estimated project cost: $1,005,750.00. Property owner assessments at 75%: $754,312.99. The City's share will be funded from the Homer Accelerated Water and Sewer Program. Total assessment per parcel is $9,796.27. Recommend adoption.

Memorandum 03-192, from Public Works as backup.

Placed under Resolutions at the request of Councilmember Ladd.

J. Resolution 03-144, Of the Homer City Council Adopting An Alternative Allocation Method for the FY 04 Shared Fisheries Business Tax Program and Certifying that this Allocation Method Fairly Represents the Distribution of Significant Effects of Fisheries Business Activity in the Cook Inlet Fisheries Management Area. City Manager. Recommend adoption.

K. Resolution 03-145, Of the City Council Amending the City of Homer Fee Schedule Fire Department Ambulance Fees, to Increase the Fees for Basic Life Support, Non Emergency Transportation and Mileage Rates. HVFD. Finance Director. Fiscal Note: Revenue anticipated $25,000.00 per year for Ambulance Fees. Recommend adoption.

Memorandum 03-193 from Fire Chief as backup.

L. Resolution 03-146(S), Of the City Council of Homer, Alaska Awarding the Contract for the Homer Port Security Fence and Gate Installation to the Firm of Wolverine Fencing, Inc. of Seward, Alaska in the Amount of $46,900.00 and Authorizing the City Manager to Execute the Appropriate Documents. Port/Harbor City Clerk. Fiscal Note: TSA Grant accepted via Ordinance 03-44, 08/11/03: Project Number 415-915. Recommend adoption.

Memorandum 03-194, from Port/Harbor as backup.

Port/Harbor Director Abbott requested that this be pulled from the Agenda. There is a need to rebid.

M. Memorandum 03-195, from City Clerk, Re: Liquor License Renewal for Kharacters, Down East Saloon, Bayside, Transfer from Bayside to Alibi, Renewal for Happy Face, Waiver for Rum Locker regarding Location. Fiscal Note: Revenues. Recommend non objection and approval.

N. Memorandum 03-196, from Mayor, Re: Appointment of Lane Chesley to the Road Standards Committee. Recommend confirmation.

O. Memorandum 03-198, from Finance Director, Re: University of Alaska Kachemak Bay Campus Lease. Fiscal Note: The lease term is from October 1, 2003 through September 30, 2006, three additional one-year renewal periods. The lease rate is $52,800.00 per year, plus tax. Recommend approval.

Placed on the December 8th agenda under Agenda Approval.

P. Memorandum 03-199, from Finance Director, Re: Harbor Enterprises, Inc. (Petro Marine) Lease. Fiscal Note: Currently has a 5 year lease with three 5 year renewal options, the lease expires on November 30, 2003. This is the first of five year renewals. Harbor Ent. Inc. has contracted to have the required appraisal accomplished in January 2004, adjustments will be retro to November 30, 2003. Recommend approval.

Q. Memorandum 03-200, from Finance Director, Re: Short Term Leases for The Auction Block, Deep Creek, Desperate Marine, Snug Harbor Seafood=s and Dana Besecker. Fiscal Note: The lease term is from December 1, 2003 through November 30, 2004. The lease rate is Auction Block-$150, Deep Creek-$1,000, Desperate Marine-$375, Snug Harbor Seafood=s-$665 and Dana Besecker-$550 per month, plus tax. Recommend approval.

R Memorandum 03-201, from City Manager, Re: Funding Request/Land Acquisition in Bridge Creek Watershed ~~Donation to CACS of $5,000.00 from City of Homer to Purchase Property Adjacent to the Bridge Creek Watershed~~. Fiscal Note: Land Bank Fund, 180, Contribution of $3,000.00 to $5,000.00. Recommend approval.

Placed under New Business at the request of Councilmember Ladd.

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

VOTE: (excluding B, B1, D, I, L and R.) YES: NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

VISITORS

A. Heather Beggs, Museum Director. (Written report distributed to the Council.)

Ms. Beggs thanked the Council for allowing her to speak as a visitor and that as the director of the Pratt wanted to thank them for their individual support. She voiced her appreciation for having found the Pratt Museum and for being a part of such a forward thinking community. Included in her report and update were the following:

The 2004 proposed budget for the Museum includes the General Operating Budget, of which City funds go toward, and restricted grants for special programs. Majority of 2004 restricted funds are from the National Endowment for the Humanities and the Institute for Museum and Library Services for the first phase of the Master Exhibit Plan, to be installed in April and May 2004.

A pie chart showing the percentage of break downs for the 2003 General Operating Budget, showing how the Museum consistently spends City dollars.

There has been a decline in funding.

Museum and City history.

Positive economic impact for the City, 30,000 visitors attracted to Homer each year.

Increase in tourism and business incentive.

City funding to the Pratt is a wise investment and assists in providing a valuable service to the community.

Preservation of Homer=s history, community heritage.

Educational benefit.

There was a brief question and answer period.

Ms. Beggs advised that the Pratt Museum is on a Calendar Year budget.

B. Michael Illg, Community Schools Coordinator, Re: Community Schools Program.

(Written materials distributed to the Council.)

Mr. Illg=s report emphasized the need for the Homer Community Schools program and the funding cuts to the program making City funding even more essential.

The program promotes community involvement and life long learning through educational and recreation opportunities for people of all ages. This is accomplished through maximizing usage of all community facilities and resources while utilizing, expanding and uniting local business and school resources and expertise. The program is designed to recognize cultural diversity and to address social and community concerns.

He apprized the Council of the schedule of programs.

There was a brief question and answer period.

ANNOUNCEMENTS/PRESENTATIONS/BOROUGH REPORT/COMMISSION REPORTS

None scheduled.

PUBLIC HEARING(S)

A. Ordinance 03-62, Of the City Council Repealing Homer City Code Chapter 8.02 General Business License. Port/Harbor. City Manager. (First Reading 10/27/03, Public Hearing and Second Reading 11/24/03.)

There was no public testimony.

STARK/NOVAK - MOVED FOR THE ADOPTION OF ORDINANCE 03-62 BY READING OF TITLE.

There was no discussion.

VOTE: YES: NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

B. Ocean Drive Loop Bluff Erosion Control Assessment Increase.

Angie Newby testified that although their neighborhood had the opportunity during the special meeting, earlier in the day, to express their objection to finalizing the seawall assessment district she said that she felt it imperative to restate concerns during the one and only public hearing regarding this new assessment. She advised that they feel it is in the City=s best interest to postpone all actions regarding the Ocean Drive Bluff Erosion Project, that there are so many incongruities in this project from the original bid award and design, through construction, the overall costs, and a flawed LID methodology. She suggested that the best thing to do is to direct the City Manager to continue discussions with the property owners in the assessment district, who are a cohesive group who have worked together since May of 2000 with the intention of protecting their homes along with a fairly substantial property tax base for the City. She advised that they want to continue a positive dialog with the City and believe that there are a variety of solutions to resolving their concerns about this project and its resulting cost. She stated that the current final assessment is about 40% more cost to the individual property owners than was authorized in Resolution 01-05, in February 2001 and that the final front footage calculations are 18 % less than the original assessment roll. She reported that the original calculations were based on 2,009 lineal feet at $450.00 per lineal foot and is now 1,643 lineal feet at $632.91 per lineal foot. She stated that none of the property owners with the exception of one, who was released from participating, are attorneys, but do possess common sense which prompts them to ask what grounds the City has to exceed the authorized $450.00 per lineal foot plus the 15% contingency, that was the worst case scenario, without a vote from the affected participants in the affected district. She noted that they are now being assessed $633.00 per lineal foot and would have never authorized to participate in a project at that cost, even in their wildest dreams. She noted that the only constant in this process is the overall assessment of $1,039,875.00 and that the problem is that the participants have changed, the district boundaries have changed, the lineal footage calculations have changed and even, more importantly, the seawall itself has changed. She emphasized that today is the product of, perhaps, an improper and incomplete LID methodology, and an absolutely failed construction project. She asserted that the seawall is not what they bargained for and the cost of $633.00 per lineal foot was never authorized in Resolution or neighborhood input. She pointed out that the seawall at 366 feet shorter is still the same priced and queried why the assessment isn=t $189,600.00 less. She recognized that this is a very unique LID in that the participants are paying 100% and as such deserve to be fully informed which would include a full accounting of the project costs. She told the Council that the property owners have asked, repeatedly, for a break down of the costs and were very clear from the initial conversations with the previous City Manager, Ron Drathman, and Public Works Director Meyer that they wold not be able to keep their assessment district together if costs exceeded those set out in Resolution 01-05 and that to date they have received nothing. She noted that in Resolution 01-22 there is a reference to possibly using HARP funds to offset some of the costs since a portion of Lake Street and Ocean Drive Loop, both City streets, were in danger by the escalation of erosion. Mrs. Newby reported that there is no mention of the HARP fund participation any where in the final assessment. She commented that a USDA Rural Development grant or low interest loans were discussed early on as a potential vehicle to off set the costs and that to the best of their knowledge there was no viable attempt to explore these options and secure alternate financing beyond the bond process. She relayed that the City had the opportunity to issue bond anticipation notes, which would have precluded a payment that was made from the General Operating Account. She advised the Council that in July, without any contact with the neighborhood group, the Public Works Director accepted the project as complete, on behalf of the property owners, in Memorandum 03-72. She apprized the Council of the following:

That from the beginning of construction the property owners have been expressing concerns to the Public Works Director

These concerns escalated when, during the first third of the construction phase the wall actually failed.

The surface of this fifty year maintenance free product suffered serious abrasion.

When the first wood face was installed all of the property owners were appalled and left voice mails, sent emails and were concerned.

Then when the first wood face patch failed and a second patch was applied. - Mrs. Newby advised that she personally went nuts.

The whole premise in wanting a comprehensive seawall was to find a solution to their continuous maintenance.

The system proposed by the design builder, guaranteed to be a fifty year maintenance free product, offered them some sense of security.

Phukan Inc. was selected as the number one choice in the process by the City representatives, even though the neighborhood rated them fourth out of four proposals.

The neighborhood was skeptical that the seawall product would hold up to the Alaskan storms, but everyone else seemed to think it was going to be great.

She stated that it was beyond her comprehension that the City could accept this project with all of the problems that occurred and with all of the issues that remain unresolved. She commented that if they all had been following Council agendas in July they would have testified in mass against finalizing the project and paying the bill. She stated that the property owners were never notified that this was going before the Council and they did not pick it up in the local newspaper. She asked the following questions:

Was this project accepted, because the City was not ultimately paying the bill?

If this had been a public project, funded by the City on behalf of the City; would the City have paid for a product with a manufacturer=s fifty year life that failed in the first few weeks?

Would the City have allowed the design builder to change survey lines and project configurations, because he wanted to keep cost down?

Would the City have allowed the project to continue when design materials were falling apart left and right?

Would the City have accepted a band-aid on a million dollar project?

Mrs. Newby asserted that they believe the City would have immediately put a stop to the seawall installation when the first break down of material occurred, that the City would have made a claim against the contract performance bond, the professional liability insurance for the design builder or the products= liability insurance of the manufacturer. She pointed out, that to the best of her knowledge, none of this was done and, instead, the City is telling the Ocean Drive neighbors to pay the bill in full without question. She reiterated that only one neighbor has been released from this situation and that they were released after he made a veiled legal threat. She suggested that there seems to be rush to finalize this assessment roll and issue bonds and that as the City Manager indicated the City will still have the opportunity to include City costs in the bond through December 2004. She stressed that the City has more than ample time to protect the City and help her neighborhood work with the City to resolve their concerns. She further stressed that many of the property owners are out of the town for the holidays and unable to attend to testify, this evening, at this meeting. However, she relayed, that they did all sign a letter to the City Manager dated November 15, 2003 outlining their concerns and forcefully objecting to ratification of the assessment roll, contending that it is inappropriate to move forward until the property owners and the City Manager explore a mutually beneficial resolution to this matter. She suggested that, with the holidays, any action be postponed until spring when their concerns and the budget are addressed. She stated that they do not want this to pass this evening, because it will force them into a litigious position. She thanked the Council.

Findlay Abbott, resident of Yukon Island and property owner on Ocean Drive Loop on the Seawall project, in thanking the Council, told the Council that they are really over worked, that there are a lot of things going on in Homer and that the work of the Council is a huge investment to the community. He noted that he spoke in the earlier meeting and would try to not say the same things and that the bottom line is that this project is a catastrophic failure waiting to happen. He noted that he submitted a three page report on some of the conditions that happened last week with the big tide, substantial new damage to the seawall in just about four days, that the wall sank some more in some sections and no longer any where near its initial elevation of 30 feet. He apprized the Council that the waves were breaching completely over the wall and washing material back over, so a substantial amount of the back fill has been washed out from behind the wall, exposing the plastic edge up to a foot or more almost the entire length of the wall, so the plastic almost loses its strength, and there are new cracks, and delamination where that plastic is exposed. He emphasized that the engineer is the one who chose the plastic material, told them that this was going to be a good solution, that it would be long term and low maintenance. He noted the concerns raised by the property owners about the weather that would be hitting this wall and abrasion damage, emphasizing that the engineer would not even hear that. Mr. Abbott voiced his opinion that it did not even occur to the engineer that there was going to be abrasion damage until it happened and that he does not believe that the manufacturer made any promises to them, that it was the engineer who made the promises. Mr. Abbott told the Council that the engineer recommended the plastic material over steel, because steel rusts and that in, maybe, 20 or 30 years the steel would rust. Mr. Abbott told the Council that this plastic is no thicker than steel sheet piling, which failed on the Spit, that when the abrasion happened he quickly put a patch over it with all of that wood, which was a very short term solution. He told the Council that if Awe@ accept this wall Awe@ are going to be replacing the wood barrier, probably, every five years and that it is already showing serious wear. He noted that there are a number of ways in which he can complain about the engineering; that the project was severely under designed as far as conditions and that in the engineer=s proposals and information given them, the engineer had estimated the maximum tidal height to be 22.5 feet. Mr. Abbott pointed out that Homer regularly has tides over 23 feet and that storms push these up another foot or too, and that last year there was that freak tide that was estimated to be 25 or 26 feet. He stated that the engineer=s maximum of tide level of computations was 22.5, maximum wave level was five feet, adding that just the other day he saw an eight foot wave hitting this wall, therefore, the wall was seriously under designed to begin with and the engineer was completely just trying out something to use this plastic material on and it became obvious that it was a big mistake. He urged the Council, before trying to get the property owners to pay for this wall, of which there will probably be a new breach or serious catastrophe, to look at the point that the engineer told them that this plastic was a good material, which was flat out wrong, in error and that there is no reason to try to help the engineer through this, that he has an errors and omissions insurance policy and that policy should pay most of cost of this wall, because another wall will have to be built. Mr. Abbott advised the Council that he wrote an article for the Homer Tribune about this last year and that he began by saying, AFrank Lloyd Wright said that doctors can bury their mistakes, but architects have to plant, plants around them.@ He asserted that in the case of the seawall both need to be done, bury the seawall completely with armor rock outside of it and plant it with beach rye so that the signs of it are not seen. He thanked the Council.

Paula Dickey commented about speaking to the Council earlier this evening at the Special Meeting around 5:30 p.m. She voiced her opinion that everything has been stated over and over again as to the concerns by the residents who are all affected by the seawall. She strongly urged the Council to not pass this Resolution, because the Council will be forcing them into other means of litigation, because they cannot live with the Resolution as it is.

Marilyn Hueper testified, as a closing member of the seawall project, that they are trying to figure out how to look to the future of their property and to think in simple terms, because some times all of these things get complicated. She recalled the costs that they agreed to pay over the next 20 years, at the indication that they were given that this was a 50 year wall, with minimal to no maintenance, and that it was a good investment for them. She commented on this being a way to unit together as a community, because various people had been attempting kind of solo efforts with minimal success and others were falling off of the cliff. She noted that they were trying to look at a way to preserve the utilities, not have to move the road, not lose the Homer owner income to the City, not have to remap that whole area again as property continued to be lost to the sea and not knowing the end point, where it would stop. She stated that it does not seem right to say yes to a wall that now has a couple of year warrantee. She pointed out that there is no indication that the engineer intends to stand behind this wall, at all, and she reiterated and echoed the comments about the early failure, adding that the manufacturer came and tried painting on the wall and that by the next tide all the paint was struck off the wall. According to Ms. Hueper the engineer was aware, shortly into the actual installation that there was going to be a problem, that he did not choose to do anything about it and that he chose to ride it out and see what would happen with complete installation. She voiced her opinion that this was a poor choice on the part of the engineer, a poor choice on their part or the City=s part to accept this wall. She assured the Council that if she were a consumer any where else she would take it back and therefore, suggested doing whatever needs to be done to take it back and say this is not what was promised. She recommended that the City say to the engineer:

In consideration we=ve looked at what you said you=d be bringing to our citizens.

We=ve looked at what you said you would be doing for us and you have not performed. We=re sorry you miscalculated your project, but we are not going to pay for your lack of expertise in this area.

We hired you as an expert.

She emphasized that the City hired Phukan, invested in Phukan on behalf of the property owners and the property owners need the City to protect them, to stand behind its citizens. She stated that it will be a real hardship if the property owners have to do this themselves, but it is not what he promised and they cannot accept delivery of a defective product. She thanked the Council.

ORDINANCE(S)

A. Ordinance 03-69, Of the City Council of Homer, Appropriating Funds for the Calendar Year 2004 for the General Fund, the Water-Sewer Fund, the Port/Harbor Fund, Debt Funds, Capital Reserve Funds (Conditional Expenditures). City Manager. Finance Director/Treasurer. (First Reading 11/24/03, Public Hearing and Second Reading 12/08/03.)

FENSKE/YOURKOWSKI - MOVED FOR THE INTRODUCTION OF ORDINANCE 03-69 BY READING OF TITLE FOR FIRST READING.

General Fund $7,088,010

Water/Sewer Fund $2,428,576

Port/Harbor Fund $2,768,504

Capital Projects $2,359,973

Internal Service Fund $ 911,520

Total Expenditures $15,556,583

The property tax mill levy is set at 5.0 mills for 2004.

YOURKOWSKI/FENSKE - MOVED TO AMEND THE GENERAL FUND TO INCLUDE FUNDING FOR THE CHAMBER OF COMMERCE, THE COMMUNITY SCHOOLS, THE HOMER FOUNDATION AND THE PRATT MUSEUM AT THE 2003 FUNDING LEVELS.

Council comments included:

These are unique partnerships with the non profits within the City and an extraordinary amount of services are received for the small amount of money that the City contributes to these organizations.

The City is receiving a wake up call from the Federal Government on down, that the City needs to be seriously looking at revenue sources and also services that are being delivered.

Some hard and essential choices need to be made to meet these needs in the future.

Desire to look for another funding mechanism, beyond this year, perhaps a service district for non profit funding or a broader funding area.

The budget is still lacking a number of dollars in certain accounts, that an additional $256,000.00 has been found that was inadvertently subtracted twice that is needed to place funds into the depreciation and fleet reserve accounts.

The Council has expressed their desire to support the Planning Department (fund another position in Planning), which will be upwards of $75,000.00.

This amendment represents $170,000.00 to $177,000.00

Other sources of revenue will be required to achieve the amendment.

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

Motion carried.

LADD/FENSKE - MOVED TO AMEND THAT WE INCLUDE IN THE DEPRECIATIONS ACCOUNTS $150,000.00 AND TO THE FLEET RESERVE ACCOUNTS $50,000.00.

Comments by the Council included:

That the City cannot live forever on tomorrow=s money and by pointing out the fact with this budget adjustment the Council needs to look closely at reserves and deferred maintenance program.

Maintenance is critical, however, dropping the fund balance below the minimum figure Council has set ($2 million) is what this proposed amendment will do.

As discussed during the worksession there will be additional fees and adjustments that will come to fruition in the Spring that will facilitate funding of deferred maintenance and vehicle replacement.

Some trade offs may need to accomplish the things the Council deems as essential.

There is some basic expensive equipment that cannot be placed by getting parts and fixing such as a piece of equipment wherein the hydraulics went out on today and the parts could not be found.

If the fleet reserves are not funded, the City does not get new equipment, does not get anything and some of the basic tasks, that the City is tasked to do, will not get done.

The basic needs of the Citizens come before non profits.

If the additional dollars do not come through, the Council needs to seriously reconsider the funding to non profits.

There were discussions during the worksession that the basic needs would be met with the $256,000.00, which did not include funding the non profits.

The Planning Division has been the top priority of this Council and this Administration for about the last year. Consideration was given to hiring someone during mid year. Code enforcement was mentioned as a high priority.

Funding for deferred maintenance is nebulous, although essential, and does not have a time line; whereas, the various non profit organizations need to know, by the end of the Council=s budget process, what funding will be allocated toward their needs.

City budgets are predicated upon revenue projections. The City Manager has been directed to come back to the Council, by the next meeting, next week, with a projected figure of what he thinks the fees might provide. Therefore, the Council does not have to go into the next calendar year figuring out revenues.

There should be a recommendation from the City Manager on how the money should be spent for Planning.

Mayor Cushing suggested that the City Manager be directed, through amendment, to come back to the Council with another $25,000.00 in cuts to assist in funding the Planning needs.

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

NO: STARK

Motion carried.

LADD/NOVAK - MOVED TO ADD $50,000.00 TO THE PLANNING BUDGET FOR THE PURPOSE OF SUPPORTING THE PLANNING DEPARTMENT.

Council made the following points.

It was stated that 99% of the issues that are in front of the Council right now have to do with Planning; town center, gate way district, steep slope development, harbor, economic development, and large store issues.

The Planning Commission is trying to cope with all of these issues and as a result, business has to sit there and twiddle their thumbs until the Council is able to come up with some resolves and answers.

There is not enough staff and technicians to make this work in a fashion that is expeditious and timely.

This has been a priority for umpteen years and needs to be done, which is believed to save money and generate revenue.

Concern was expressed regarding the amendments unbalancing the budget.

The budget has not been adopted, the amendments are showing the Council=s intent and a balanced budget will be adopted.

It is important to show the public the needs and Council=s intentions.

Council is saying that depreciation and fleet reserves are needed.

Council very much wants to support non profits.

Council very much sees some holes in Planning.

Council does not want to go below the $2 million in the fund balance as recommended by the Auditors.

Council has been discussing other sources of revenues such as fee increases.

VOTE:(primary amendment 3.) YES: FENSKE, LADD, YOURKOWSKI, NOVAK.

NO: STARK.

Motion carried.

LADD/STARK - MOVED A RECOMMENDATION TO MAINTAIN TWO MILLION DOLLAR BALANCE FOR PURPOSES OF PROVIDING OPERATING CAPITAL FOR ALL CITY OPERATIONS, A FUND BALANCE OF TWO MILLION DOLLARS AS RECOMMENDED BY THE AUDITORS AND ADMINISTRATION.

VOTE: (primary amendment 4.) YES: NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

Mayor Cushing stated that the difference being discussed is around $183,000.00, $25,000.00 of this is additional cuts or revenue generation.

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

Motion carried.

Mayor Cushing called for a recess at 11:06 p.m., reconvening the meeting at 11:19 p.m.

FENSKE/LADD - MOVED THAT THE SECOND READING OF THE BUDGET BE DECEMBER 15, 2003.

The Budget will be the first item on the Committee of the Whole agenda for December 8, 2003.

VOTE: (primary amendment 5.) YES: NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

A. 1. Resolution 03-, Of the City Council of Homer, Alaska Revising Certain Portions of the Port and Harbor of Homer Terminal Tariff No. 600. Follows same schedule as budget.

Memorandum from Port/Harbor as backup.

No action at this time.

A. 2. Resolution 03-, Of the City Council of the City of Homer, Alaska Amending the City of Homer Fee Schedule Regarding Water Rates. Follows same schedule as budget.

No action at this time.

A. 3. Resolution 03-, Of the City Council of the City of Homer, Alaska Amending the City of Homer Fee Schedule Regarding Sewer Rates. Follows same schedule as budget.

No action at this time.

A. 4. Resolution 03-, Of the City Council of Homer, Alaska Extending the City Attorney Contract with Perkins Coie for the Period of January 1, 2004 through December 31, 2004 in the Amount of $7,650.00 per Month for Forty Five Hours and Authorizing the Mayor to Execute the Contract. Follows same schedule as budget.

No action at this time.

A.5. Resolution 03-, Of the City Council Amending The City Manager=s Contract. Follows same schedule as budget.

No action at this time.

B. Consent Agenda Item. B. Ordinance 03-63 Revised, Of the City Council of Homer, Alaska, Amending Homer City Code Chapter 5.05, Smoking Prohibited in City Structures, Vehicles and Watercraft, to Control Environmental Tobacco Smoke in Public Places and Places of Employment. Beck. Yourkowski. Recommend introduction, conduct Public Hearing and Second Reading on December 8, 2003.

Placed under Ordinances at the request of Councilmember Ladd.

YOURKOWSKI/STARK - MOVED FOR THE ADOPTION OF ORDINANCE 03-63 REVISED BY READING OF TITLE.

Comments of the Council included the following:

Need to pay attention to the public comments.

Regarding the health impacts of second hand smoke and realize this is no different than any other health issue that is in state or city requirements.

Regarding not needing further intrusion for something not of a critical issue.

STARK/ - MOVED THAT THE HEARING DATE BE MOVED FOR THE TWELFTH OF JANUARY.

Motion died for lack of a second.

Council discussion continued on the main motion.

People do not need to be told about the hazardous effects of smoking.

Less than 20% of the settlement money has been used for the purposes for which it was intended, to educate the public. This is what the focus should be on.

Comments about some of the statistics.

Good arguments have been made on both sides.

Most of the children are getting second hand smoke from the parents, thus another argument for education.

Is this pro choice or pro life?

The overall purpose of the Ordinance needs to be complimented, the Alliance has done much for the City of Homer, the City facilities should be smoke free.

The bigger issue is that of rights. The 12th amendment to the Constitution includes the words, Athe right of choice@. The Patriot Act was objected to because it infringes upon rights.

Individual responsibility needs to be emphasized.

Do this positively rather than through a mandate.

Much work and money has gone into this Ordinance.

Move ahead on a smaller scale and adopt Ordinance 03-63(S).

There is a desire to make Homer a better place to live and there is no intent to infringe on business rights.

Adopting Ordinance 03-63(S) will achieve the objective that the anti smoking people are after in a democratic voluntary way.

Make the growing, sale and distribution of tobacco illegal in the state or at the Federal level.

Informal call for the question by Councilmember Ladd was recognized by Mayor Cushing.

VOTE: YES: NOVAK, YOURKOWSKI.

NO: STARK, FENSKE, LADD.

Motion failed.

C. Consent Agenda Item B. 1. Ordinance 03-63(S), Of the City Council Amending Homer City Code Title 5, Health and Public Safety, By Adding a New Chapter 5.051, Disclosure of Smoking/Non-Smoking Status in Businesses Serving the Walk-In Public. Stark. Recommend introduction of this Substitute Ordinance instead of Ordinance 03-63, conduct Public Hearing and Second Reading on December 8, 2003.

Placed under Ordinances at the request of Councilmember Ladd.

STARK/LADD - MOVED FOR THE INTRODUCTION OF ORDINANCE 03-63(S) BY READING OF TITLE.

Mayor Cushing recognized the call for the question by Councilmember Stark for a roll call vote.

There was no discussion and there was no objection.

VOTE: YES: STARK

NO: LADD, YOURKOWSKI, NOVAK, FENSKE.

Motion failed

STARK/ - MOVED TO EXTEND.

Mayor Cushing did not recognize the motion.

D. Consent Agenda Item D. Ordinance 03-65, Of the City Council Amending Homer City Code Section 5.20.030, Trash Burning--Approved Container to Prohibit Open Burning of Household Waste and Other Items not Permitted. Mayor/City Council. HVFD. Recommend introduction and conduct Public Hearing and Second Reading December 8, 2003.

STARK/ - MOVED TO EXTEND. (SUSPEND THE RULES TO GO PAST MIDNIGHT)

Mayor Cushing asked that this motion wait until Ordinance 03-65 was placed on the floor.

FENSKE/LADD - MOVED FOR THE ADOPTION FOR INTRODUCTION OF ORDINANCE 03-65 BY READING OF TITLE.

FENSKE/LADD - MOVED FOR SUSPENSION OF THE RULES TO GO PAST TWELVE TO THE END OF BUSINESS.

VOTE:(suspension of the rules) YES: NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

Rules were suspended at 11:54 to continue past midnight.

Discussion of Ordinance 03-65.

Agreement that burning of plastics is not a good thing. Disposal is better.

LADD/FENSKE - MOVED TO STRIKE THE LAST WHEREAS.

Mayor Cushing recognized the informal call for the question by Councilmember Stark.

There were no objections.

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

Motion carried.

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

Motion carried.

CITY MANAGER=S REPORT

A. City Manager=s Report (Memorandum from Chief Robl regarding recent crime/budgetary impact; November Employee Anniversaries: Jim Hobbs PWD 23 years, Ed Barcus PWD 20 years, Dave Bolt PWD 20 years, Gail Teater HPD 20 years, Glenn Satterfield PH 7 years, Dave Shealy HPD 6 years, Mike Prouty HPD 5 years, and Mike Riley PWD 3 years; PWD project progress report.)

B. Bid Report, Game Report.

City Manager Wrede clarified/elucidated the need to rebid the Port Security Fence and Gate, it was predominately a matter of the bidders not being able to meet the specs and was therefore, determined that rebidding was the best thing to do.

Mayor Cushing suggested that those who may be interested in proposing or bidding check with the Clerk and/or Clerk=s Department regarding any of the following:

Request for Proposals For Professional Planning Services Homer Non Motorized Transportation and Trail Plan

Request for Proposals for Professional Planning Services National Scenic Byway Nomination and Corridor Management Plan for Sterling Highway.

Request for Proposals for the Wetlands delineation for Bridge Creek Watershed.

Invitation to Bid for City Hall Parks and Cemeteries Maintenance.

COMMITTEE REPORT

A. Beach Policy Committee, November 5 and 18, 2003.

B. Road Standards Committee, November 10, 2003, Meeting scheduled for November 25, 2003.

C. Town Center Development Committee, November 13, 2003.

Councilmember Stark requested that Item. C. come back at the next meeting.

Councilmember Yourkowski advised that the Road Standards Committee discussed the following:

The need to use HARP funds for a 10% match on Federal money for state roads and will apparently have to go to the voters to alter the HARP program.

Lowering the speed on the Sterling Highway to 25, to allow for more traffic to go through. They want feed back from DOT before they take this to Council.

At the next meeting they will get into the meat of the transportation plan and make recommendations to the Council for approval.

Councilmember Stark stated that he can tell the Committee what DOT will say regarding the speed limit and that this should go to the Council before DOT, since the Committee is advisory to the Council.

Mayor Cushing commented about the 10% match from HARP funds, clarifying that this is if the item has not yet been accepted through the original vote that enabled HARP. He shared his understanding that HARP funds can be used to fund a 10% share of a project if it is a project that the City is going to ultimately maintain. For example he cited the pedestrian trail at the harbor, wherein HARP funds are available. He emphasized that there are about 18 different classifications for which the voters said this money could be used.

Councilmember Stark suggested that if a vote is required that this be figured out so that it can go on the ballot for October.

Councilmember Fenske inquired if the Road Standards Committee is looking at the egress and ingress for the development of the City Center or the Central Business District, along with signage and traffic handling.

Councilmember Yourkowski responded in the negative, reporting that the Committee has defined where they are going and will now start doing that.

PENDING BUSINESS

NEW BUSINESS

A. Memorandum 03-197, from City Clerk, Re: Selection of Mayor Pro Tempore for 2003/2004. Requested by Councilmember Ladd.

RECOMMENDATION: ______________ is appointed as Mayor Pro Tempore for the City of Homer for 2003/04.

YOURKOWSKI - RECOMMEND JOHN FENSKE AS MAYOR PRO TEM FOR 2003/2004.

There were no other nominations.

YOURKOWSKI/LADD - MOVED TO APPROVE THE RECOMMENDATION OF MEMORANDUM 03-197 TO READ JOHN FENSKE IS APPOINTED AS MAYOR PRO TEMPORE FOR THE CITY OF HOMER FOR 2003 SLASH 2004.

There was a brief comment.

Mayor Cushing confirmed that this is effective immediately.

VOTE: YES: NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

B. Consent Agenda Item R Memorandum 03-201, from City Manager, Re: Funding Request/Land Acquisition in Bridge Creek Watershed ~~Donation to ACCS of $5,000.00 from City of Homer to Purchase Property Adjacent to the Bridge Creek Watershed~~. Fiscal Note: Land Bank Fund, 180, Contribution of $3,000.00 to $5,000.00. Recommend approval.

~~Recommendation: To make a contribution of $3,000 to $5,000 from funds contained in the Land Bank.~~

YOURKOWSKI/ MOVED TO APPROVE THE RECOMMENDATIONS OF MEMORANDUM 03-201.

FENSKE/YOURKOWSKI - MOVED TO AMEND TO SHOW FIVE THOUSAND DOLLARS.

Discussion:

This will give the City at least some ownership in those lots.

The purpose to help purchase those lots is to protect the watershed.

The adjacent properties are protected, therefore this is appropriate.

The City of Homer does not, by Ordinance, have a Land Bank. There is a line item in the General Fund called Land Bank, therefore this money is coming from the General Fund to give to another organization to purchase some land.

Council just directed the City Manager to go look for another $25,000.00 to support Council=s budget amendments.

This is a non profit operation and not something the City should get into during these economic times.

This does not give the City an ownership interest in this property.

This is one and a half miles away from the watershed.

Suggestion about raising money through the schools for the purchase of this property that will be of educational benefit to the school children.

The Land Bank Fund does contain Exxon Valdez money ear marked for the purchase of land from the University adjacent to the reservoir. This was briefly discussed as a side issue and purchase is pending.

Mayor Cushing recognized the informal call for the question by Councilmember Stark.

There were no objections.

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

Motion carried.

There was no further discussion.

There was a call for a roll call vote by Councilmember Stark.

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

NO: FENSKE, YOURKOWSKI, NOVAK.

Motion failed as amended.

RESOLUTIONS

A Resolution 03-143(S), Of the City of Homer, Alaska, Approving and Confirming the Final Assessment Roll for the Ocean Drive Loop Bluff Erosion Control Improvement/Assessment District, Created and Established for the Purpose of Paying the Cost of Certain Improvements in the City of Homer, and Levying and Assessing the Amount Thereof Against the Lots, Tracts, Parcels of Land and other Property Shown on Said Roll. Finance. City Clerk. Fiscal Note: Total project cost: $1,039,875.00. 100% assessed to the property owners, amount allocated per bluff front foot or $632.91 per bluff front foot. Recommend adoption.

Corrected Assessment Roll

Memorandum 03-188, from Public Works and Finance as backup.

Placed on Special Meeting Agenda. Special Meeting was recessed at 6:43 p.m. to after the Regular Meeting.

B. Resolution 03-147(S), Of the City Council of Homer, Alaska Regarding Lower Peninsula Shallow Natural Gas Leases and Coal Bed Methane Development. Mayor. Ladd

Motion for the adoption of Resolution 03-147 by reading of title only.

LADD/YOURKOWSKI - MOVED FOR THE ADOPTION OF RESOLUTION 03-147(S) BY READING OF TITLE ONLY.

Councilmember Stark called for unanimous.

There was objection by Councilmember Fenske.

Councilmember Stark deferred to his colleague.

Council discussed the Resolution:

Concern was expressed regarding the Coal Bed Methane drilling and shallow gas development adjacent to the City=s water supply.

HB 69 is flawed and strengthens powerful, highly financed special interests.

There is something wrong with the process.

The citizens were not notified.

Overrides local authority.

The legislatures needs to review this matter.

VOTE: YES: NON OBJECTION. UNANIMOUS CONSENT.

Motion carried.

C. Consent Agenda Item I. Resolution 03-137(S), Of the City Council of the City of Homer, Alaska, Authorizing the Formation of the Ocean Drive Loop Sewer Assessment District and Authorizing the City Manager to Proceed with the Preparation and Construction of the Ocean Drive Loop Sewer Project City Clerk. Fiscal Note: Total estimated project cost: $1,005,750.00. Property owner assessments at 75%: $754,312.99. The City's share will be funded from the Homer Accelerated Water and Sewer Program. Total assessment per parcel is $9,796.27. Recommend adoption.

Memorandum 03-192, from Public Works as backup.

Mayor recused himself. There were no comments of the Council. He handed the gavel to Mayor Pro Tempore Fenske as he left the table.

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

Council noted that the City was supposed to bring back some information and there are some areas/property owners at the west end that are not wanting to participate.

LADD/NOVAK - MOVED TO POSTPONE ACTION UNTIL SUCH TIME AS THE COUNCIL IS BROUGHT FORWARD, RETURNS THE INFORMATION WE ASKED AT A PREVIOUS MEETING.

Public Works Director Meyer advised that if the lots on the west end were not included this would keep at least one individual out who wants the sewer improvement. He referenced his memo on page 151 of the packet, that when property owners/parcels are removed from the LID, those who remain pay a higher assessment. He emphasized that, in general, it is best to try, where possible, to spread the cost of the improvements across as many properties as possible. He advised that it has been found in other LIDS as properties are removed the fixed cost associated with constructing a project gets spread over fewer and fewer properties and in the long run costs everyone money. He confirmed, in response to Council inquiry, that many times those property owners that wanted out decide they want to get back in, creating problems and costs. He further confirmed that the boundary, as shown in the packet, had the majority of the assessed value is in favor of the project.

He advised that he has not done the calculations on the impact if the properties were removed.

Councilmember Ladd noted that there are approximately twenty one of the thirty one properties on the west who want to opt out. He asked if the reduction in the project size would reduce the cost to the project and, therefore, to the property owners. He asked for this information at a later date.

Public Works Director Meyer stated that Public Works can do that. He responded to Council inquiry that he believes the Council has the authority to amend the boundaries.

It was noted that when the administration brings this back to the Council it will be on the Committee of the Whole agenda as part of the Regular Meeting Agenda, approximately January 12, 2004.

Mayor Pro Tempore Fenske recognized the informal call for the question by Councilmember Ladd.

There were no objections.

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

Motion carried.

Mayor Cushing returned to the table at 12:38 a.m.

COMMENTS OF THE AUDIENCE

Audience Comments upon ANY matter.

Merlin Cordes commented to Mayor Pro Tempore Fenske that this is an excellent example of what it is going to take to take care of this problem, people riding in cars and the kids and everything. He commented that 95% already comply, with confirmation that this was 90% to 95%, which is one heck of a compliance without having any regulations. He voiced his hope that this much time, effort and money will not again be spent on just two or three percent of something.

Celeste Novak addressed the Council regarding Spit Leases, specifically the one Council just gave to Bill Tener two weeks ago. She reported that she has been a business owner for four years on the Spit that she owns, but leases the property. She advised that she too has a sub lease, lease situation that keeps her from a long term investment in her business, that she called the City in about the year 2001, after her first year, to find out if there were any other leased properties available out there and was told that anything that becomes available, that is public, goes out to bid. She told the Council that she checked again in 2002 and got the same response, adding her surprise when on October 27th she was driving home and tuned into KBBI to hear that the Council was approving a lease to Bill Tener. She voiced objection to this not going out to bid, that she called several Councilmembers and that she was basically told that it was a done deal. She apprized the Council that she did speak to an attorney who suggested that she speak to each Councilmember, which she did and got a range of comments from: It=s a done deal to sue the City and onward. She shared her frustration, that she wants to know how the lease requirements work, does it take hounding the City Manager and Dean Baugh, whoever that is, because it sounds like he handles the leases. She asked to be told how she can get the same opportunity that Bill Tener had, because she wants to grow her business too and with handing him that lease the Council has eliminated her opportunity to grow her business, to employ citizens of Homer, to invest in her future, and have eliminated the precious commodity of sixty parking spaces, have eliminated grid dock parking, have eliminated a wooden boat festival site and have proven that they don=t adhere to their own policies including ensuring lessee compliance with lease requirements. She asserted that the Council has done a disservice to her, to all the citizens of this community who depend on the Council to get the maximum value to generate revenue, perhaps one of the reason for having some of the budget problems. She asked for information for available property for sale or for lease. She asked what she needs to do.

Mayor Cushing suggested that it sounds like she is looking for a point of contact, that this is a pertinent question, that there are other people talking to the City and that he personally does not know who they are talking to. He emphasized that the Council needs to make it very clear who the point of contact is so that everyone is receiving the same information.

Councilmember Novak voiced his opinion that it obviously needs to be the City Manager and that this goes through him.

Celeste Novak confirmed that now she knows who to contact and that she would, now, like to know what they are going to do for her, reemphasizing that she wants the same opportunity as Bill Tener.

Mayor Cushing recommending dusting off the Spit Comprehensive Plan, that there clearly are some lots available, that there should be a mechanism to let the public know and for the Council to decide what they are going to do with those lots.

Councilmember Fenske relayed being told that the lots on the east side of the boat harbor are available for lease and that there have been lease agreements made with those parking equipment. He commented that there seems to be some mis communication. He relayed some comments that were given to him.

Councilmember Novak relayed some comments from the worksession about restructuring the lots and opening up some more land for development once the market value is determined and some criteria is set up. He suggested that Ms. Novak keep in tune with the City Manager.

City Manager Wrede advised that he has not had any contact with her about a lot and confirmed that there will be more opportunities coming up for her and other businesses. He commented about not having seen the Spit Comprehensive Plan, about overslope development and trying to put design standards on a fast track for those as well.

Mayor Cushing reiterated the need for all lease inquiries to be forwarded to the City Manager for consistency of information.

Councilmember Ladd noted that there is a Resolution on the agenda for next week for a comprehensive review of the Property Management Policy and Procedures Manual with revisions.

Celeste Novak stated that this is all great stuff, but she feels as though she has been totally left out of the process. She stated that she will contact the Manager and thanked the Council.

Barb Peterson commented that after hearing the testimony on the Ocean Drive Loop Erosion Control District LID, what they are going through, the process of change that happened, that she is very appreciative of the fact that there is going to be a hard look at what would happen to the Ocean Drive Loop Sewer LID if there were changes, if the west end were dropped. She stated that she also wanted to bring to the Council=s attention the slough part and about the people who will have the sewer line with the gravity feed going through their property. She noted the letter from Mr. Richards, who did not object in writing, but who spoke to the Council at the August 25th meeting that he would not give an easement for the sewer to go across his property. She also commented about the Hatfield Callis people who do not object to the sewer, but do object to it going through their property. She advised that there are other people who have the same situation such as the Haleys and the Bells, who have not written to the Council, but have expressed, within the neighborhood, their adamant objection to this easement going through their property. She commented about those who came in after the August 24th deadline and that Mr. Richard thought that his testimony on August 25th was sufficient, and that he probably had not read the fine print that he needed to do it in writing. She stated that the reality is that as far as she knows up to this point that she would much rather these people talk to the Council themselves, but they are not here. She emphasized that the design is a real issue for these folks regarding gravity feed. She voiced appreciation that the Council is going to try to deal with these issues on the north or west side so that the same situation does not happen as with the Ocean Drive Loop Bluff Erosion Control District. She apprized the Council that some properties are starting to be combined and that she wanted to add that to the Public Works Director=s consideration and thanked the Council.

Leonard Wells questioned the procedure about the action on Memoranda, why they were not discussed, basically the liquor license renewals.

Mayor Cushing advised that these were acted upon on the Consent Agenda and were passed by one motion.

COMMENTS OF THE CITY ATTORNEY

City Attorneys Tans and Krieger participated during the Executive Session telephonically.

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 had no comment.

COMMENTS OF THE CITY COUNCIL

Councilmembers had no comments.

ADJOURNMENT

There being no further business to come before the Council the meeting was adjourned at 12:57 a.m. The next Regular Meeting is scheduled for Monday, December 8, 2003 at 7 p.m. The next Committee of the Whole is scheduled for Monday, December 8, 2003 at 4 p.m. The meetings are scheduled to be held in the Homer City Hall Council Chambers located at 491 E. Pioneer Avenue, Homer, Alaska. All meetings scheduled to be held in the Homer City Hall Council Chambers located at 491 E. Pioneer Avenue, Homer, Alaska. The special meeting as adjourned at 6:43 p.m. December 1st will reconvened at 1:11 a.m. and adjourned at 2:05 a.m.

_____________________________________

MARY L. CALHOUN, CMC, CITY CLERK

Approved: __________________________

^[1]Robert Keys, member of the public, had a medical emergency.