Session 06-02, a Special Meeting of the Homer City Council was called to order at 5:30 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, SHADLE, STARK, WYTHE.

STAFF: CITY CLERK CALHOUN

CITY MANAGER WREDE

Council met as a Committee of the Whole from 4:04 to 5:18 p.m. Regarding Resolution 05-113, and the City Library cooperating with the Kachemak Community College including accepting a part-time employee from the College, paid by the College, and accepting and shelving/cataloging the library books from the College (Resolution 06-09(S)) Resolution 06-08, Of the City Council of Homer, Alaska Urging the State of Alaska to Prioritize Investment in Alaska's Existing Transportation System. and the Regular Agenda Items.

AGENDA APPROVAL

The agenda was approved by consensus of the City Council.

PUBLIC COMMENTS UPON MATTERS ALREADY ON THE AGENDA

Public may only speak on request for executive session.

There were no public comments.

NEW BUSINESS

A. Memorandum 06-10, from 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. (Hurlen Settlement Offer - Pioneer Dock Project.)

RECOMMENDATION: Approve the above request for Executive Session and conduct immediately in the Conference Room.

Councilmember McLay inquired if the motion needed to include inviting Public Works Director Meyer, if his being present would be advantageous.

City Manager Wrede stated, "Probably not." (Note the Public Works Director was not present.)

McLAY/STARK - MOVED FOR THE APPROVAL OF MEMORANDUM 06-10 AS PER THE TITLE.

There was no discussion.

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

Motion carried.

Mayor recessed Special Meeting to Executive Session at 5:32 p.m. and reconvened the Special Meeting at 6 p.m.

Mayor Hornaday called for a motion or a statement by the Mayor Pro Tempore.

McLAY/NOVAK - I move the approval of a settlement of disputes concerning the construction contract for the Pioneer Dock as follows: The City will accept from defendants RMC (formerly known as Hurlen Construction Company), ACC and Safeco the total sum of $800,00.00 in full settlement of all claims between defendants and the City, including the dismissal of all ACC's claims against the City arising out of the Project. The City will assign to ACC, without any warranty of value, remaining claims it may have from the project. The settlement is conditioned upon the execution of mutually acceptable releases by the City and the defendants.

There was no discussion.

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

Motion carried.

COMMENTS OF THE AUDIENCE

Audience may comment on any matter.

There were no audience comments.

COMMENTS OF THE CITY ATTORNEY

City Attorney did not participate.

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

Councilmembers had no comments.

ADJOURNMENT

There being no further business to come before the Council, Mayor Hornaday adjourned the meeting at 6:01 p.m. Regular Meeting follows at 7 p.m. The Next Regular Meeting is scheduled for Monday, January 23, 2006 at 7 p.m. in the Homer City Hall Cowles Council Chambers and the Next Committee of the Whole is scheduled for Monday, January 23, 2006 at 4 p.m. All meetings scheduled to be held in the Homer City Hall Cowles Council Chambers located at 491 E. Pioneer Avenue, Homer, Alaska.

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MARY L. CALHOUN, CMC, CITY CLERK

Approved: __________________________