Session 05-36, a Special Meeting of the Homer City Council was called to order at 5:00 p.m. by Mayor James C. Hornaday at the Homer City Hall Cowles Council Chambers located at 491 E Pioneer Avenue, Homer, Alaska, and opened with the Pledge of Allegiance.

PRESENT: COUNCILMEMBERS: HEIMBUCH, McLAY, NOVAK, STARK, WYTHE.

STAFF: CITY CLERK CALHOUN

CITY MANAGER WREDE

CITY ATTORNEY TANS (telephonically)

ABSENT: COUNCILMEMBER: SHADLE (excused, participated until Executive Session telephonically)

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

Council met as a Committee of the Whole from 4:00 to 5:00 p.m. Regarding Resolution 05-113, and the Regular Agenda items including the budget. Homer City Hall Cowles Council Chambers.

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 City Council.

PUBLIC COMMENTS ON MATTERS ALREADY ON THE AGENDA.

There were no public comments.

NEW BUSINESS

A. Memorandum 05-182, from Deputy City Clerk, Re: Request for Executive Session AS § 44.62.310(C)(1), Matters, the Immediate Knowledge of which would Clearly have an Adverse Effect upon the Finances of the Government Unit and Attorney-Client Privilege. (Ocean Drive Loop Bluff Erosion Control Project Litigation, aka, Seawall, Settlement Offer.)

Recommendation: Approve the request for Executive Session and conduct immediately.

Mayor read the Executive Session Request into the record.

McLAY/STARK - MOVED FOR THE APPROVAL OF THE RECOMMENDATION OF MEMORANDUM 05-182.

There was no discussion or opposition expressed.

VOTE: YES: McLAY, WYTHE, SHADLE, STARK, NOVAK, HEIMBUCH.

Motion carried.

Councilmember Shadle no longer participated in this meeting.

Mayor Hornaday recessed the Special Meeting to Executive Session at 5:02 p.m. and reconvened the Special Meeting at 5:23 p.m.

Mayor Hornaday stated that the Council met in Executive Session and noted that this matter was discussed in Executive Session.

McLAY/STARK - I MOVE THE APPROVAL OF A PARTIAL SETTLEMENT OF THE DISPUTES CONCERNING OCEAN DRIVE LOOP AS FOLLOWS: THE CITY WILL ACCEPT FROM PHUKAN ENGINEERING, CREATIVE PROTRUSIONS, BOB LEE, AND THEIR VARIOUS INSURERS THE SUM OF $545,000 IN FULL SETTLEMENT OF ALL CLAIMS AGAINST THEM ARISING OUT OF THE CONSTRUCTION OF THE SEAWALL AND THEIR VARIOUS WARRANTIES. THIS IS CONDITIONED UPON THE EXECUTION OF MUTUALLY ACCEPTABLE RELEASES BY THE CITY AND ALL THE PROPERTY OWNERS WHO HAVE APPEALED THE ASSESSMENTS IN THE OCEAN DRIVE LOOP BLUFF EROSION CONTROL LOCAL IMPROVEMENT DISTRICT. THE FUNDS WILL BE APPLIED TO THE PRINCIPAL OF THE OUTSTANDING LID ASSESSMENTS OF THOSE PROPERTY OWNERS. ALL LEGAL DISPUTES BETWEEN THE CITY AND THOSE PROPERTY OWNERS ARE NOT AFFECTED BY THIS SETTLEMENT AND MUST BE RESOLVED IN FUTURE LEGAL PROCEEDINGS. THE CITY MANAGER IS AUTHORIZED TO EXECUTE ALL DOCUMENTS NECESSARY TO EFFECTUATE THIS SETTLEMENT.

There was no discussion.

VOTE: YES: HEIMBUCH, McLAY, WYTHE, STARK, NOVAK.

Motion carried.

COMMENTS OF THE AUDIENCE

There were no comments.

COMMENTS OF THE CITY ATTORNEY

City Attorney Tans participated telephonically during the Executive Session.

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 Hornaday had no comment.

COMMENTS OF THE CITY COUNCIL

Councilmember Stark stated that Council just made a move forward and that he is pleased.

ADJOURNMENT

There being no further business to come before the Council, Mayor Hornaday adjourned the meeting at 5:25 p.m. There is a reception at the College with UA President Hamilton in Room 201.

The Regular Meeting follows at 7 p.m. The next Regular Meeting is scheduled for Monday, January 9, 2006 at 7 p.m. and the next Committee of the Whole is scheduled for Monday, January 9, 2006 at 4 p.m.

____________________________________

MARY L. CALHOUN, CMC, CITY CLERK

Approved: ___________________