M E M O R A N D U M 05-177
TO: MAYOR HORNADAY AND HOMER CITY COUNCIL
FROM: MARY L. CALHOUN, CITY CLERK
DATE: NOVEMBER 18, 2005
SUBJ: COUNCILMEMBER HEIMBUCH NOTICE OF RECONSIDERATION ON
ORDINANCE 05-58(S)(A).
Councilmember Heimbuch issued Notice of Reconsider of Ordinance 05-58, on Wednesday,
November 16, 2005 at 8:53 a.m. Action was taken to adopt Ordinance 05-(S)(A) on Monday,
November 14, 2005 during a Regular City Council Meeting. Councilmember Heimbuch issued
Notice of Reconsideration in person. He voted on the prevailing side, the vote passing with 4 yes
and 2 no, Councilmembers Wythe and Novak casting the dissenting votes.
Pursuant to Council Bylaws: HCC 1.24.040(i.) Motions to reconsider: A member of the Council
who voted with the prevailing side on any issue may move to reconsider the Council's action at the
same meeting or at the next regular meeting of the body. (In this case November 28, 2005.) Notice
of reconsideration shall be given to the Mayor or City Clerk within forty-eight hours from the time
the original action was taken.
Listed under Ordinances on November 14, 2005:
G. Ordinance 05-58(S)(A), Of the Homer City Council Amending Homer City Code Section
1.24.040, By-Laws for Council Procedure(m) Salaries of Elected Officials, [ to Raise the Expense
Allowance and] to Prohibit Membership in the Public Employees Retirement System (PERS) for
Elected Officials. Stark. Fiscal Note: $150 budgeted (First Reading October 24, 2005, Public
Hearing and Second Reading November 14, 2005.)
There was public testimony.
STARK/WYTHE - MAKE THE MOTION TO ADOPT ORDINANCE 05-58(S)(A) BY
READING OF TITLE.
There was no discussion.
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HEIMBUCH/SHADLE - MOVED TO AMEND THAT THE COUNCILMEMBERS WILL
RECEIVE $150.00 PER MONTH DURING THEIR TERM OF OFFICE AS A
REIMBURSEMENT FOR EXPENSES.
There was no discussion.
STARK/HEIMBUCH - MOVED TO AMEND TO INCLUDE THE MAYOR AT $200 PER
MONTH.
Discussion included: Reiteration of Representative Seaton's comments, that raising the expense
allowance is a guaranteed increase of the cost to the City of $100.00 a month for the life of the plan,
that is $1,200.00 per Councilmember per year for all eternity and indexing as it goes along at the
whim of the Council. The history of Councilmembers getting PERS, seven one of whom had prior
service and came into the Council PERS fully vested in the plan. The problem with PERS is not the
unfunded pension issue it is the unfunded health issue. Anyone who is not currently sitting at this
table today will not be eligible for the pension retiree health insurance benefits that exist right now
today, since Tier IV eliminates the pension benefit. Resolution 05-120 was noted that this requires a
vote of the people for the Council to receive pay. The salary survey was mentioned and that the
$150 is below every muni except Wasilla. Based on the figures from Representative Seaton one
school janitor would be equal to 30 years of Council service, a good deal.
Councilmember McLay objected to bringing into the discussion Resolution 05-120.
Mayor Hornaday allowed discussion on Resolution 05-120 as it pertains to compensation.
Discussion ensued:
It was pointed out that this is a reimbursement for expenses Council incurs while serving on the
Council, such as for those Councilmembers in private business/self employed, when citizens drop by
to chat about Council/City business and the impacts thereof. Actual costs to the City were
discussed.
VOTE: (secondary amendment to primary amendment 1.) YES: HEIMBUCH, McLAY, WYTHE, SHADLE, STARK.
NO: NOVAK.
Motion carried.
Councilmember Shadle inquired about the compensation being optional and if it could be donated to
an entity, such as Homer Hospice.
City Manager Wrede responded that to the best of his knowledge the Council may opt out, but the
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City cannot send Council's compensation somewhere else.
VOTE: (primary amendment as amended) YES: McLAY, SHADLE, STARK, HEIMBUCH.
NO: WYTHE, NOVAK.
Motion carried.
There was no discussion.
STARK/HEIMBUCH - MOVED TO AMEND TO DELETE THE SECOND WHEREAS CLAUSE
WHEREAS, CITY ATTORNEY HAS STATED THAT A RAISE IN THE EXPENSE
ALLOWANCE CAN ONLY BE EFFECTIVE FOR NEWLY ELECTED OFFICIALS TO AVOID
A CONFLICT OF INTEREST WHERE COUNCILMEMBERS RAISE THEIR OWN
SALARIES; AND.
There was a brief comment regarding why this is not pertinent.
VOTE: (primary amendment 2.) YES: NON OBJECTION. UNANIMOUS CONSENT.
Motion carried.
Discussion ensued regarding costs and whether or not to participate in PERS.
McLAY/WYTHE - MOVED TO TABLE.
No discussion on a motion of this type.
VOTE: (lay on the table) YES: NOVAK, HEIMBUCH, McLAY, WYTHE.
NO: STARK, SHADLE.
Motion carried.
The Mayor called for a recess at 8:43 p.m., reconvening the meeting at 8:48 p.m.
Taken off the table under Pending Business.
Ordinance 05-58(S)(A) as amended was taken from the table
McLAY/HEIMBUCH - MOVED TO TAKE OFF OF THE TABLE ORDINANCE 05-58(S)(A).
No discussion is allowed on a motion of this nature.
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VOTE:(take from the table) YES: McLAY, WYTHE, SHADLE, STARK, NOVAK, HEIMBUCH.
Motion carried.
MAIN MOTION BACK ON THE FLOOR AS AMENDED: STARK/WYTHE - MAKE THE
MOTION TO ADOPT ORDINANCE 05-58(S)(A) BY READING OF TITLE.
Amendment 1. with amendment that passed: THE COUNCILMEMBERS WILL RECEIVE
$150.00 PER MONTH DURING THEIR TERM OF OFFICE AS A REIMBURSEMENT FOR
EXPENSES AND THE MAYOR AT $200 PER MONTH. Amendment 2. Delete 2nd Whereas clause.
There was no discussion.
Mayor Hornaday recognized the informal call for the question by Councilmember McLay.
VOTE: (main motion as amended) YES: HEIMBUCH, McLAY, SHADLE. STARK.
NO: WYTHE, NOVAK.
Motion carried.
ADOPTED.
If reconsideration is approved, the main motion as amended for Ordinance 05-58(S)(A) is back on
the floor under Ordinances.
RECOMMENDATION:
Recommend approval of the reconsideration.
Fiscal Note: NA