Session 06-25, 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, NOVAK, ROBERTS, SHADLE, STARK, WYTHE.

STAFF: CITY CLERK CALHOUN

CITY MANAGER WREDE

CITY ATTORNEY TANS

Council met as a Committee of the Whole from 4:00 to 5:18 p.m. Agenda items were the Budget, CIP/Legislative Requests and the Regular Meeting Agenda Items.

AGENDA APPROVAL

The agenda is approved by consensus of the Council.

There was no discussion.

PUBLIC COMMENTS UPON MATTERS ALREADY ON THE AGENDA

There were no public comments.

NEW BUSINESS

A. Memorandum 06-177, from City Clerk, Re: Request for Executive Session Pursuant to 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. (Fuller vs. City - Settlement Offer and City Water without City Sewer and Associated Issues. )

Recommendation: Approve the above request for Executive Session, authorize attendance by pertinent staff, and conduct immediately in the Conference Room.

NOVAK/HEIMBUCH - I'D LIKE TO MOVE TO GO INTO EXECUTIVE SESSION FOR A DISCUSSION OF MATTERS PROTECTED BY THE ATTORNEY-CLIENT PRIVILEGE AND THE IMMEDIATE KNOWLEDGE OF WHICH WOULD HAVE AN ADVERSE EFFECT ON THE FINANCES OF THE CITY THE SUBJECTS ARE THE OFFER OF SETTLEMENT IN THE FULLER VERSUS CITY OF HOMER LAWSUIT AND CONCERNS ABOUT LIABILITY POTENTIALLY ARISING FROM EXTENDING OR NOT EXTENDING WATER AND SEWER SERVICES.

There was no discussion.

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

Motion carried.

Mayor Hornaday recessed the Special Meeting to Executive Session at 5:32 p.m., reconvening the Special Meeting at 6:23 p.m.

Mayor Pro Tempore Novak stated: In a special session they discussed Septic System LIDs on steep slopes and no decisions were made at this time. Also discussed the settlement offer with Fuller vs. Homer.

NOVAK/WYTHE - AND I WOULD LIKE TO INTRODUCE A MOTION AUTHORIZING THE ACCEPTANCE OF FULLER VERSUS CITY OF HOMER SETTLEMENT OFFER PENDING THE APPROPRIATION OF THE FUNDS.

There was no discussion.

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

Motion carried.

COMMENTS OF THE AUDIENCE

Audience comments upon any matter.

There were no audience comments.

COMMENTS OF THE CITY ATTORNEY

City Attorney Tans stated that he is pleased to be here.

COMMENTS OF THE CITY CLERK

City Clerk Calhoun had no comment.

COMMENTS OF THE CITY MANAGER

City Manager Wrede stated that he found a note pad and wondered if anyone had lost one.

COMMENTS OF THE MAYOR

Mayor Hornaday had no comment.

COMMENTS OF THE CITY COUNCIL

Councilmembers had no comment.

ADJOURNMENT

There being no further business to come before the Council the meeting was adjourned at 6:24 p.m. The regular meeting follows at 7 p.m. The next Regular Meeting is scheduled for Monday, November 27, 2006 at 7 p.m. in the Homer City Hall Cowles Council Chambers and the next Committee of the Whole is scheduled for Monday, November 27, 2006 at 4 p.m. Special Meetings are scheduled for October 27, 2006 at 10 a.m. and November 20, 2006 at 7 p.m. All meetings scheduled to be held in the Homer City Hall Council Chambers located at 491 E. Pioneer Avenue, Homer, Alaska.

______________________________________

MARY L. CALHOUN, CMC, CITY CLERK

Approved: ______________________