Session 00-24, a Regular Meeting of the Homer City Council was called to order at 7:34 p.m. by

Mayor Cushing at the Homer City Hall Council Chambers located at 491 E. Pioneer Avenue, Homer, Alaska, and opened with the Pledge of Allegiance.

PRESENT: COUNCILMEMBERS: CUE, FENSKE, KRANICH, LADD, MARQUARDT, YOURKOWSKI.

STAFF: CITY MANAGER DRATHMAN

CITY CLERK MARY CALHOUN

CITY ATTORNEY TANS

FINANCE DIRECTOR BAUGH

PUBLIC WORKS DIRECTOR MEYER

AGENDA APPROVAL

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

APPROVED BY CONSENSUS: Addition of Memorandum 00-65 to the Consent Agenda as item G., and removal of Pending Business Item A.

PUBLIC COMMENTS UPON MATTERS ALREADY ON THE AGENDA (No comments at this time on Visitor or Public Hearing Items: Ordinance 00-32 with accompanying Resolutions, Ordinance 00-33 and Ordinance 00-35.)

Abigail Fuller commented on New Business Item A, noting that for the benefit of anyone listening, who has not been following their struggle to access public records, that the Court has ordered the Council to actually view the documents, that they denied on appeal last May. She further noted that the Court has asked that the Council decide whether or not the documents are deliberative and should be privileged. She voiced her hope that the Council would be fair, honest and impartial in this review, and therefore, she and CCAA have requested Mr. Fenske to recuse himself. This request, according to Ms. Fuller, is due to Mr. Fenske's comments in the Homer News, two weeks ago, that showed that he had already made up his mind and was not going to be fair and impartial. These records are sought, because of the belief that the records contain information needed to evaluate the City's annexation petition. She stated that "they" were thrown into this adversarial proceeding by the City and it is just not right to deny the documents, even if it turns out that the documents do not contain the information they hope for. Ms. Fuller pointed out that the people do not give the government the right to control information, freedom depends on freedom of information and open government, both of which have been in short supply in Homer. She quoted Patrick Henry as having once said, "the liberties for people never were nor ever will be secure when the transactions of the rulers may be concealed from them." She urged the Council to show support for liberty and release these public records.

Pete Roberts, President of CCAA, commented that "you folks" always seem to get things a little mixed up, pointing out that CCAA are the ones that instituted this suit along with Abigail Fuller. He reported that CCAA is incorporated under Kachemak Area Coalition, a corporation of the State of Alaska. Mr. Roberts advised that the reason he is present is New Business Item A., which has to do with a request for memorandum that was denied. He told that Council that it is time for them to do the right thing, that they are a public entity, work for the public, and that everything they generate belongs to and is owned by the public. He voiced his opinion that there are some real problems in this City if there is "anything" in those memorandums and documents, asked for, yet seriously doubts that there is, and in any case, "they" should see the light of day. He noted that he does not expect a smoking gun, but that the Council knows that answer, having reviewed these. He suggested that this smacks of the Nixon White House, which is not needed here, nor a political grid lock.

City Manager Drathman stated that he wanted to submit a memorandum dealing with the same item the last two speakers spoke to; one is the initial request for memorandum and the second is an affidavit of how the memorandum were used.

Mayor Cushing inquired to whom, exactly, he was submitting these documents.

City Manager Drathman responded that he is submitting these to the Council for consideration in the Executive Session. When asked, he stated that he assumed these would become a part of the record or whatever the Council chooses.

City Attorney Tans asked that the Mayor identify the documents.

Mayor Cushing advised that one is a Memorandum dated Tuesday, December 21st, 1999 from the City Manager to the City Clerk, Finance Director, City Planner, City Personnel Officer, City Librarian, Public Works Director, Chief of Police, Fire Chief and Port and Harbor Director, regarding Annexation 2000 map and Kenai Peninsula Borough economic data attached. The second document is an affidavit, dated September 29, 2000, of Ronald William Drathman to the Superior Court for the State of Alaska, Third Judicial District and it's the list of the A. through Z. documents.

RECONSIDERATION

CONSENT AGENDA

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

A. Homer City Council regular meeting unapproved minutes of November 27, 2000. Recommend approval.

B. Memorandum 00-61, from City Manager, Re: Calhoun Trail Sign Request. Fiscal Note: Acct: 100.5209.175 $200 from 2001 Budget. Recommend approval.

C. Resolution 00-114, Of the City Council of Homer, Alaska Renewing the Courier Service Contract with O'Leary Enterprises for 2001 in the Amount of $775 per Month, Plus Additional Trip Fees as Bid in 2000 and Authorizing the City Manager to Execute the Appropriate Documents. Finance. City Clerk. Fiscal Note: Acct: 100.5243.140, budgeted 2000 and for 2001 adopted 12/18/00. Recommend adoption.

D. Memorandum 00-63, from City Clerk, Re: City Attorney's Request for an Executive Session, Attorney Client Privilege Re: Court Remand of Abigail Fuller Vs. City of Homer - Council deliberations concerning records request. Recommend approval.

E Memorandum 00-64, from Mayor, Re: Water and Sewer Committee membership. Recommend confirmation.

F Resolution 00-116 Of the City Council of Homer, Alaska Supporting KBBI'S Request for Homer Public Radio Broadcast Equipment Replacement. City Manager. Recommend adoption.

G. Added: Memorandum 00-65, from Mayor, Re: Homer Representative on the Kenai Peninsula Borough Planning Commission.

MARQUARDT/CUE - MOVED FOR THE ADOPTION AND/OR APPROVAL OF THE RECOMMENDATIONS OF THE CONSENT AGENDA.

Councilmember Kranich asked to be informed regarding a possible 60' right-of-way at the Calhoun Trail site.

VOTE: YES: FENSKE, LADD, YOURKOWSKI, MARQUARDT, KRANICH, CUE.

Motion carried.

VISITORS

A. Alaska Marine Conservation Council (AMCC), Report from Alan Parks on the National Marine Federal Services Stellar Sea Lions Biological Opinion.

Mr. Parks emphasized the substantial impact to the local fishing fleet and to the City revenues with less product coming over the City docks, that he conservatively estimated at being reduced to less than a ton as well as impacting the Fisheries Business Tax. He stated that AMCC's position is that through more reasonable, thoughtful and careful planning the adverse effects can be reduced, help rebuild the Stellar Sea Lion, protect the habitat, and maintain a sustainable fishery. He stated that AMCC does have a year to help the North Pacific Fisheries Management Council adopt a more reasonable and thoughtful management plan with public input. The current management plan will go into effect for the coming season and contains radical changes that have been initiated without public input. Senator Stevens may be able to attach a rider to a Bill to provide an exception for the fishing fleet for this year; however, the likelihood of that happening with the current administration is not very good. There are approximately 470 permits issued in the Homer area, 5 or 6 are in Anchor Point and 6 to 8 are in Seldovia.

Mr. Parks invited the Mayor, Council and all those present and listening to the AMCC meeting on Wednesday night at 7 p.m. in the Council Chambers.

Mayor Cushing asked that the maps, Mr. Parks showed on the overhead, be copied for the Council.

ANNOUNCEMENTS/ PRESENTATIONS/ BOROUGH REPORT/ COMMISSION REPORTS

A. Mayor and Council Travel Reports.

Mayor Cushing acknowledged the Boy Scout Troop(s) in the audience and elucidated the agenda and Council meeting process, including the differences in Ordinances, Resolutions and Memoranda. He explained the public comment and audience comment agenda items.

Kenai Peninsula Borough Assembly member Milli Martin shared her enthusiasm with the direction the Borough is taking regarding land issues and apprized the Council of tomorrow night's assembly meeting agenda. The Assembly agenda includes: Final discussion and, hopefully, approval of the proposed timber harvest on borough lands. Final lands selection from the state. Resolution or Ordinance in support of pursuing the proposed private prison that could go in the Kenai area with the potential for jobs. Ms. Martin reported that she attended the EDD meeting on Friday and voiced appreciation of Mayor Cushing's presentation. She advised that the different presentations at EDD were very interesting with the perspectives of the cities, agencies and industries throughout the Borough, which provides an idea of where to start looking at where the Borough wants to go economically. There will be local community meetings to give the public some input into this process.

PUBLIC HEARING(S)

A. Ordinance 00-32, Of the City Council of Homer, Alaska, Appropriating Funds for the Calendar Year 2001 for the General Fund, the Water Fund, the Sewer Fund, the Port/Harbor Fund, Debt Funds, Capital Reserve Funds (conditional expenditures). City Manager. Finance Director. (First Reading 11/27/00, Public Hearing 12/11/00, Second Reading 12/18/00.) The budget document is separate.

Michael Hawfield, Director of the Pratt Museum, urged the Council to support the financial assistance to the non profits, particularly the Pratt Museum. He reiterated the importance of local funding that represents the essential local support required to obtain funding from other entities. He reported Museum statistics such as 38,000 visitors last year; 9 full time, 6 part time and 15 seasonal employees; and retired and teen volunteers and employees. He commented that for every $1 funded to the museum the return is $5 to $6 back into the community. Mr. Hawfield advised of some grants received due to the local support, which is one of the highest rated categories/criteria in grant applications. There were $400,000 received in "outside grant money" and the museum received a museum and library services grant that is extremely difficult to win. He gave total grant figures from prior years through present as $3.5 million and the generation of an additional $2.7 million in earned revenues from the visitors that come to this community. He emphasized that the Pratt Museum is a defined part of Homer and a significant part of the arts community and plays an essential role in Homer for volunteerism, resources to the local schools, heritage, preservation of records, economics and so on. Mr. Hawfield emphasized that the museum is not just an amenity it is an economic element and a necessity for attracting new businesses, for encouraging local businesses to begin and to grow, attracting home makers to raise their families here, for attracting retirees to settle here or begin new retirement oriented business and stimulates volunteerism. He pointed out that since 1968 the City of Homer has given financial assistance to the Museum.

Barb Seaman, Executive Director of Heritage Land Trust and Project Administrator for the Homer Town Square Project, encouraged the Council to increase the Planning Department's budget, because planning is critical to the future of Homer. There are so many things on the City's plate that require planning; town square project, wetlands, business and zoning. She stated that without a long range vision the City has just a knee jerk reaction most of the time. She commented that it seems to her that the City is operating in a bit of a vacuum without addressing a long range plan. She voiced her desire for a professional planner and encouraged the Council to support a better planning department, a tighter planning department and a professional planning department. The economic benefits of good planning have been proven else where. She asked the Council to look forward to the future of Homer.

Rebecca Paul urged the Council to support Homer Head Start with $5,000, adding that this is the third year Head Start has requested this amount. She emphasized how essential and necessary the funding is and that they just have to have it. She reported that they serve families inside and outside the City limits and have expanded from 29 families to 32, approximately 128 individuals. She pointed out that, as mentioned in the Homer News, there are other ways to make contributions. The $5,000 is needed to offset the $126,000 operating budget. She reported that Brother Asaiah set up a $5,000 fund through the Homer Foundation, called the Brother Asaiah Fund for Homer Head Start. She advised that the request will always be for $5,000 and they will always need to show this City support.

Betsy Crumrine elucidated the importance of Homer Head Start to the community and especially to her family. She reported on her daughter's growth and development of skills with regard to peer relationships since September 15th and these skills are important for all children. She expressed her feeling that the City Council has the obligation and the power to make this happen for all children by funding Head Start and making it a priority.

Joe Lawlor advised that he is a retiree that came to live in Homer, because of the non profits. The non profits provide something to do, somewhere to get involved, and somewhere to be important. He exemplified the museum, noted the help the non profits need, and stated that his main pitch is for Head Start. He emphasized that the community needs Head Start. He relayed personal experiences of community assistance and of the importance of education and of getting a "head start". He asked the Council if they can give $5,000 for this coming year and kind of pick up where Brother Asaiah left off, it is important, and that they will be well thanked.

Ken Castner congratulated the administration, specifically mentioning the City Manager and Finance Director, on putting together a very coherent and easy to read budget document. He encouraged the Council, as at the budget worksession, to give consideration to adding funding for the non profits back into the budget, put non profit contributions back into the equation. The non profits are a part of the fabric of this community that is really important. He commented that Mike Hawfield discussed the 38,000 visitors to the museum. Mr. Castner mentioned that there were almost 3,000 people, not all from this area, that came to see the Nut Cracker at the Mariner Theater the last two weekends. There are a lot of people that come to Homer for the arts and cultures. As a member of the Homer Foundation Board of Trustees, Mr. Castner offered some assistance in making the determination of how much money to allocate or how the money is to be divided. He commented on the list of criterions and qualifications that might be examined. He said that he would wait until Audience Comments to speak to the alternations/modifications made by a Councilmember.

City Manager Drathman reminded the Council to submit their budget amendment sheets by Wednesday.

Mayor Cushing reported that it appeared at the budget worksession that the Council intended to approve some funding for non profits.

The City Manager explained the zero figure in the budget for non profits, that the dollar figure of $100,000 had been mentioned and it appears that the unexpended amounts from the 2000 budget would cover $100,000 in non profit allocations, and will balance over a two year period. He stated that the administration does not tamper with the Mayor/Council budget or the non profits, being a political funding decision.

Mayor Cushing commented on potential conflict of interest issues regarding non profits. For example, he advised that his wife is on the board of the Homer Foundation, with no financial gain. He asked the Council to be real thorough with this matter of conflict of interest and speak with the City Attorney.

A.1. Resolution 00-, Of the City Council of Homer, Alaska Revising the Port and Harbor of Homer Terminal Tariff NO. 600. Finance. Port/Harbor. City Clerk. (Follows same schedule as the Budget Ordinance.)

A.2. Resolution 00-, Of the City Council of the City of Homer, Alaska, Amending the City of Homer Fee Scheduled Regarding the Sewer Rates. Finance. City Clerk. (Follows same schedule as the Budget Ordinance.)

B. Ordinance 00-33, Of the City Council of the City of Homer, Alaska, Accepting Certain Tax-Foreclosed Property Deeded to the City by the Kenai Peninsula Borough and Determining the Disposition of Parcel 179-280-33. City Clerk. Fiscal Note: Taxes due as of November 15th $5,785.78 with penalty, acct: 100.5233.140. (First Reading 11/27/00, Public Hearing 12/11/00, Second Reading 12/18/00.)

There was no public testimony.

Mayor Cushing advised that Julie Cesarini indicated she would be submitting a letter tomorrow as public input.

C. Ordinance 00-35, Of the City Council of Homer, Alaska, Appropriating $46,600.00 from the General Fund Fleet Reserve for the Purchase of Two 4X4 Pickup Trucks with service body from Tony Chevrolet for the Public Works Department and Authorizing the City Manager to make this Purchase. City Manager. Public Works (First Reading 11/27/00, Public Hearing 12/11/00, Second Reading 12/11/00.)

There was no public testimony.

City Manager Drathman requested an amendment regarding the funds, that this should be water and sewer fleet reserve rather than general fund fleet reserve.

ORDINANCE(S)

A. Ordinance 00-35, Of the City Council of Homer, Alaska, Appropriating $46,600.00 from the General Fund Fleet Reserve for the Purchase of Two 4X4 Pickup Trucks with service body from Tony Chevrolet for the Public Works Department and Authorizing the City Manager to make this Purchase. City Manager. Public Works. Fiscal Note: Account 152.5902.383. (First Reading 11/27/00, Public Hearing 12/11/00, Second Reading 12/11/00.)

MARQUARDT/KRANICH - MOVED FOR THE ADOPTION OF ORDINANCE 00-35 BY READING OF TITLE.

FENSKE/MARQUARDT - MOVED TO AMEND ORDINANCE 00-35, IN THE TITLE LINE BEGINNING AT THE END OF THE SECOND LINE AND AT THE BEGINNING AT THE THIRD LINE TO TAKE OUT GENERAL FUND FLEET RESERVE AND INSERT WATER AND SEWER FLEET RESERVE FUND AND THE FIRST WHEREAS AT THE END OF THE FIRST LINE TO STRIKE PUBLIC WORKS DEPARTMENT AND INSERT WATER AND SEWER AND DOWN ABOUT A THIRD OF THE WAY FROM THE BOTTOM UNDER NOW THEREFORE BE IT ORDAINED BY THE HOMER CITY COUNCIL SECTION 1. WHERE IT SAYS GENERAL FUND FLEET RESERVE, STRIKE GENERAL FUND INSERT WATER AND SEWER.

Public Works Director Meyer responded to Council inquiry that these are replacement vehicles. The water and sewer will not have an additional vehicle, but the Parks/Recreation Department will end up with one additional vehicle to assist during the summer time with the camp fee collection effort.

VOTE:(primary amendment) YES: KRANICH, CUE, FENSKE, LADD, YOURKOWSKI, MARQUARDT.

Motion carried.

VOTE:(main amended motion) YES: CUE, FENSKE, LADD, YOURKOWSKI, MARQUARDT, KRANICH.

Motion carried.

CITY MANAGER' S REPORT

A. City Manager's Report (Ice/Crane Time)

B. Bid Report, from City Clerk

The Treasurer's report was briefly discussed regarding the 101 % sales tax. This includes the one time settlement of $50,000 to $60,000 from AT & T.

COMMITTEE REPORT

PENDING BUSINESS

A. Memorandum 00-62, from City Manager, Re: HEA Aerial Electrical Service Line for 2750 Sterling Highway. Postponed on 11/27/00, Main motion is on the floor.

Recommendation: That the City Council approve the request for approval for an aerial electrical service line for 2750 Sterling Highway. Fiscal Note: NA

MAIN MOTION ON THE FLOOR: KRANICH/CUE - MOVED FOR THE ADOPTION OF THE RECOMMENDATION OF MEMORANDUM 00-62.

This was pulled from the agenda under agenda approval per the City Manager's request. The City Manager will bring this matter back to the Council as soon as a resolution is made between HEA and the City. Mayor Cushing stated that by Council's affirmation on pulling this from the agenda they indeed postponed the matter.

NEW BUSINESS

A. Court Remand of Abigail Fuller Vs. City of Homer - Council deliberations concerning records request. Conduct Executive Session.

Mayor Cushing asked Councilmember Fenske if he felt that he would be able to judge the questions before the Council fairly and impartially on the basis of the review of the documents and not on the basis of any pre existing bias or judgement on other factors.

Councilmember Fenske stated that he certainly does. He commented that there seems to be some misunderstanding as to his comments, by Ms. Fuller, to the Homer News. He advised that the question from the Homer News was asked prior to any information coming to the Council or to the City about the appeal, or the appeal to the Court. He emphasized that he had no information about what Abigail Fuller was about, at that particular juncture. He noted that his comments didn't include her name or the name of the organization that she belongs to and was strictly information that he had shared on several occasions. Regarding any prejudice on his part, he affirmed that there is none and none intended, at all. Mr. Fenske commented that he thought it a little presumptive of Abigail Fuller to think that there was any prejudice and wanted to try and clear that up.

Mayor Cushing recessed the Regular Meeting to Executive Session at 8:57 p.m. Mayor Cushing returned to the Council Chambers at 10:24 p.m., announcing that the Council was back from Executive Session and would be taking a 10 minute recess. Mayor Cushing called the Regular Meeting back to order at 10:37 p.m.

Councilmember Marquardt stated that the Mayor, Council and City Attorney met in Executive Session regarding the Abigail Fuller vs. the City of Homer, records request appeal. He further stated that they reviewed and discussed the documents in question and have given their attorney instructions to prepare a written decision.

Mayor Cushing stated that the Council will be getting that written decision and doing final approval on that to the Attorney.

RESOLUTIONS

COMMENTS OF THE AUDIENCE.

Joe Gallagher, Cook Inlet Regional Citizens' Advisory Council (CIRCAC) Public Outreach Coordinator, reported on the meeting with the Prince William Sound Regional Citizen's Advisory Council (PWSRCAC) last Thursday night in Anchorage, to recognize the volunteers that serve with CIRCAC and PWSRCAC. He reported that Judge James Hornaday, Homer's Representative, was selected as Board member of the year, which was well deserved in that he does an excellent job and is a strong voice for Oil Spill Prevention. He further reported that Ken Castner, another Homer person, was honored as Committee member of the year, selected by the staff, for his many contributions. He advised that Mr. Castner is leaving CIRCAC after many years representing Commercial Fishing. Mr. Gallagher applauded both men for their outstanding work and strong voices, especially on controversial matters. He thanked the Mayor and Council for being so supportive and thanked Mayor Cushing for his support, for coming to bat for the CIRCAC and the lower Cook Inlet area on a lot of issues. Mr. Gallagher reported on the Seldovia Oil Spill (SOS) team funding, that has been in place for three years and looked like it was going to be discontinued. He advised that he contacted Mayor Cushing and they decided to get the lower Cook Inlet Mayors and Kenai Peninsula Borough Mayor Bagley to get a letter to the Governor, which resulted in a letter from the Governor to DEC to find a way to make the funding happen for SOS. He wished all a good holiday.

Ken Castner commented about Alan Parks report about the Sea Lions and that there is going to be a real intrusion into the State fisheries over this matter, with a bigger impact, in his opinion, in the herring and salmon fisheries. He suggested that the Council pay attention, because salmon and herring pay a lot of bills in this town. He commented on funding of non profits and stated that he has to take a bit of an issue as to whether the funding is included or excluded in the budget. He stated that he thinks the process is that the Manager presents a balanced budget, with expenses on one side and income on the other. He pointed out that the way the budget matched up there was no provision for any expense against income for non profits. He voiced his preference that the process be where an amount is blocked in or penciled in or something for discussion rather than facing a zero allocation, as has been done for the last two years. He advised that he will not be here for second reading and asked for permission to ask a couple of questions of Mr. Ladd's intentions on the modifications to funding criteria and qualifications for non profits.

Mayor Cushing called for a consensus of the Council to grant this request. There were no objections from the Council.

Mr. Ladd advised that he supports the Homer Foundation. He researched criteria from other entities and provided some information from ICOM Code of Professional Ethics and the non profit guides. Mr. Ladd's recommendations are the underlined portions of the following criteria and qualification:

Qualifications:

1. The organization holds a 501(c)(3) tax status.

2. The organization has an office or facility located within the City limits

3. The request is for general operating funds.

4. The organization has a written statement setting out clearly its legal status and permanent, non-profit nature, drawn up in accordance with appropriate laws in relation to non-profit institutions.

Funding Criteria:

1. Service to community:

Number of days of annual service (seasonal or year round)

Longevity (how long in existence/history)

Demonstrate cooperative efforts with other organizations

2. Budget size and practices:

Sound fiscal practices (property accounting procedures must be adopted in accordance with relevant law)

Sound fiscal procedures as demonstrated through historical performance

Regular financial reports to the Board of Directors

Planning for future financial stability

3. Broad base of support:

Successful in other organizational fund raising (memberships, donors, grants)

4. Commercial Relationship:

When it may be the policy of the organization to seek and accept financial or other support from commercial or industrial organizations, or from other outside sources, it must be demonstrated that great care has been directed toward clearly defining the agreed relationship between the organization and the sponsor. Commercial support and sponsorship may involve ethical problems and the organization must ensure and demonstrate that the standard and objectives of the organization are not compromised by such a relationship.

Distribution Process:

1. The Homer Foundation will qualify and rate grant recipients (Funding Proposal Application).

2. The Homer Foundation will assess grant recipient effectiveness and provide an annual report to the City of Homer of municipally funded programs sponsored by recipient organization.

3. The Foundation will distribute municipal funds during the calendar year.

4. The Foundation may also supplement or provide alternative funding for municipal grant requests.

5. The Foundation will report and acknowledge the municipal grants through its normal reporting procedures.

Mr. Castner agreed with Qualification Item 4., however, it is a bit redundant in that to be a 501(c)(3) all of those items must be in place. He voiced no objection to the additional wording in Funding Criteria items 1 and 2, however, item 4. is unclear. He voiced disagreement with Distribution Process, item 2., assessment, which is something the Homer Foundation does not get involved with nor has the City. He voiced a preference for the recipients to make presentations for justifications, et cetera. He emphasized that assessment is extremely subjective.

Councilmember Ladd read Funding Criteria Item 4.into the record. He stated that municipal money is going out to a non profit, who will be looking for other sources of money. He advised that this statement is directly from the criteria for set up of museums, a pretty common statement. He pointed out that there are a lot of conflicts that can occur within an organization and the City is accountable for this money.

Council discussion ensued predominately on item 4. under Funding Criteria. The Homer Foundation will review these suggestions at their January 5th meeting. The reporting issue was discussed, this should be more of a general report card. To this point there has been no criteria and no reporting requirement. This year is phase B. of the Homer Foundation funding mechanism for non profits. It was noted that the non profits have a higher reporting responsibility than regular businesses and are held to a much higher standard by regulation. Preference was voiced for a criteria that does not change every six months or so or without a public process.

City Attorney Tans addressed a question about liability and the Homer Foundation acting on behalf of the City in disseminating these funds. He recommended that the City not make it so that the Homer Foundation is acting on behalf of the City. He suggested that the City have the Homer Foundation be independent, help them with the criteria, but the grant is made to them and they make grants beyond that to the people that fit the criteria. He recommended against making the Homer Foundation an entity or a delegate of the City of Homer, which should eliminate any liability concerns.

Frank Griswold stated that he does not agree with the ruling or understanding about the conflict of interest on non profits, nor how the ruling is justified in light of Homer Code 1.12.010(b), which defines a person's financial interest as: 1. an interest of a family member and 2. any affiliation with an organization in which he has an ownership interest, holds a position of management or is an officer, director or trustee, employee or the like. He commented on hearing Council talk about how ethical the organization is, but it doesn't matter and it doesn't matter if one of them is just a member of that organization. However, if one of the Council is an office holder or a board member, or their wife or a family member, up to the second degree of sanguinity, is an office holder or a board member, then they are serving two masters. He commented about a previous Councilmember that was an officer with the Homer Elks, who excused himself from voting on the renewal of the Elk's Liquor License. He suggested that the Council take a good look at the Code and amendment it if they don't like it. He mentioned that a couple of years ago or a year and a half ago in these types of discussions he thought he heard Val Koeberlein, while City Manager, say that the City Attorney was actually doing his estate planning, of which Mr. Griswold voiced objection if it is true. Mr. Griswold said that he was looking forward to hearing the decision tonight on the release of public records. He inquired if that was technically a legislative session or a quasi judicial session in Executive Session. He voiced his expectation of hearing Council's deliberations and any actions they were going to take on the matter, adding that there were a lot of people waiting to see how the Council voted. Mr. Griswold suggested that if that was a legislative act and the Council took action in the Executive Session instead of coming back out after their discussions with their attorney, then that was a violation of the Open Meetings Act. He stated that another thing he never heard was an actual ruling from the Mayor on whether or not Mr. Fenske had a conflict of interest, although Mr. Fenske stated twice that he did not have a conflict. He further stated that he never saw the Council get an opportunity to override the Mayor.

COMMENTS OF THE CITY ATTORNEY

City Attorney Tans had no comment.

COMMENTS OF THE CITY CLERK

City Clerk Calhoun had no comment.

COMMENTS OF THE CITY MANAGER

City Manager Drathman commented that the documents Mr. Ladd had about non profit criteria would be reproduced for the Mayor, Council and Homer Foundation. He emphasized, just for the record, that the City Attorney is not planning his estate and hoped that no one is planning his estate.

COMMENTS OF THE MAYOR

Mayor Cushing stated for the record: "I have no business dealings with the City Attorney." He responded to Mr. Griswold's comments about the Executive Session, that the document is not final and when it is it will be public. He asked the City Attorney for a legal opinion letter in response to Mr. Griswold's comments about the Conflict of Interest question he raised with regard to the budget.

City Attorney Tans stated that he would get back to the Mayor.

Mayor Cushing commented about the appointment of Bill Smith to the Borough Planning Commission while Leroy Gannaway is absent. The term expires in July 2001, at that time Leroy Gannaway may wish to be appointed, or Mr. Smith may wish to be appointed, or the Commission may bring forward a nomination if Mr. Gannaway nor Mr. Smith wish to serve in this capacity. He reported on the EDD Conference on Friday, the good representation and number of individuals from Homer. He stated that the minutes and summaries of that conference would be out shortly and he will distribute these.

COMMENTS OF THE CITY COUNCIL

Councilmember Ladd commented about the non profit criteria and that he wanted to offer some thoughts and ideas, adding that he is very supportive of the Homer Foundation. He voiced his preference of giving the funds to the Homer Foundation rather than directly to the non profit entities.

Councilmember Cue suggested that Mr. Ladd participate telephonically during the December 18th Special Meeting.

After a brief discussion the Council agreed that Mr. Ladd may participate telephonically for the December 18th Special Meeting.

Councilmember Kranich applauded and commended Ken Castner, Council on the Arts and all of those volunteers involved in the Nut Cracker event of the past few days. He reported that there were 3,000 who attended the Nut Cracker and not just Homerites.

Councilmember Marquardt commented on the conflict of interest question; that each year he has relayed this potential conflict and Council has found him to not have a conflict, and that he had discussed his association with a non profit with the City Attorney and will be discussing it some more. He voiced agreement with Councilmember Ladd that there should be a reporting on how the non profit money is spent. He voiced his opinion that giving the money to the Homer Foundation for the non profits clears up the question of conflict of interest. Regarding the comments about the Executive Session and Council violating the Open Meetings Act, Mr. Marquardt stated that Homer's City Attorney is Mr. Open Meetings Person, instructs everyone at AML and explains how the Open Meetings Act works to hundreds of municipal members around the state. He voiced his confidence that Council is not violating any Open Meeting Laws in the City Attorney's presence. He expressed his opinion that this was a good meeting, looks forward to finalizing the budget and voiced a hope that Mr. Ladd can participate by teleconference.

Councilmembers Cue, Fenske and Yourkowski had no comments.

ADJOURNMENT

There being no further business to come before the Council the meeting was adjourned at 11:40 p.m. The next Regular Meeting is scheduled for January 8th at 7:30 p.m. in the Homer City Hall Council Chambers. A special meeting and the last scheduled Council meeting of 2000 is December 18, 2000 at 7:30 p.m in the Homer City Hall Council Chambers.

_____________________________________

MARY L. CALHOUN, CMC, CITY CLERK

Approved: ____________________________