Session 07-21 a Special Meeting of the Homer City Council was called to order on September 13, 2007 at 12:02 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, STARK,                                                                                       WYTHE

 

ABSENT:                                                        SHADLE

 

STAFF:                                                           CITY MANAGER WREDE

                                                                        CITY CLERK JOHNSON

                                                                        DEPUTY CITY CLERK JACOBSEN

                                                                        ATTORNEY LEVESQUE

 

AGENDA APPROVAL

 

Agenda was approved by consensus of the City Council.

 

Mayor Hornaday explained the quasi-judicial proceeding. Attorney Joe Levesque advised that public comments cannot be considered in the Council’s decision, only testimony under oath can be considered.

  

PUBLIC COMMENTS UPON MATTERS ALREADY ON THE AGENDA

 

There were no public comments.

 

NEW BUSINESS

A.                 HEARING – Alleged Conflict of Interest & Ethics Violation against Councilmember Shadle.

 

Attorney Joe Levesque was hired by the City, as the regular City Attorney Gordon Tans felt he had a conflict.

 

Attorney Joe Levesque, with Walker and Levesque in Anchorage, Alaska, was retained to provide assistance to the City Council for the ethics hearing. Tom Taffe is the complainant. He alleges Councilmember Shadle violated the conflict of interest HCC 1.12 and the Code of Ethics 1.18.030. Parties were noticed and the public received notice of the hearing. Councilmember Shadle was not present. Mr. Levesque referenced page 38 in the special meeting packet, a letter sent to parties, that the City Council shall consider any written presentation, evidence and documents presented to it and proceed. There were no briefs filed. Testimony will be under oath. Written evidence, maps, diagrams and pictures will be marked whether admitted or not. A letter was submitted by Councilmember Shadle to the City Clerk with instructions for the Mayor to open the letter at noon.[1]

 

Having read the letter himself, Mr. Levesque asked for a short break for the Mayor and Mr. Taffe to look at the letter and decide if it is to be read.

 

Council recessed at 12:09 p.m. and resumed the meeting at 12:11 p.m.

 

Complainant Taffe objected to introduction of Councilmember Shadle’s evidence into the record, stating he needs to be available to answer questions.

 

Mayor Hornaday objected to introduction of the letter, stating it was not timely, and Councilmember was not present for questions.

 

Attorney Levesque advised that the notice to parties says if information is not filed seven (7) days before the proceeding, it will not be admitted, unless the person shows good cause. That may occur if someone has an excuse for the lateness; the presiding officer would then decide if it can be accepted late. The letter is dated September 13th. There was no motion to show good cause why it was not presented timely.

 

Councilmember Novak said since the presiding officer made the determination not to admit the letter it would be better if the letter were not read.

 

Councilmember Heimbuch questioned if there were any situations, other than those presented that would provide for extra-ordinary circumstances? Is there a duty to concur with the Mayor?

 

Attorney Levesque answered that submittal of evidence is a part of the procedural process he set to keep the proceeding going in a timely fashion. If someone has a problem with the date and time they can request a continuance; it must be a serious condition or special excuse. It needs to be of an emergency nature.

 

Councilmember Heimbuch said with the ethics code in ordinance and a penalty attached it could be a criminal sanction. If the rule of procedure is determined by the attorney he would not want to impose the sanction of procedural rule by the attorney.

 

Attorney Levesque advised the notices went out August 22nd, allowing ample opportunity for objection to the procedures.

 

Councilmember Heimbuch voiced it could be considered a criminal sanction, if Council had the wherewithal, yet the procedure was determined by the attorney. He wouldn’t want a sanction imposed under procedural recommendation from the attorney.

 

Attorney Levesque said the procedures were distributed August 22, 2007 and if there were objections they should have been made known.

 

Decisions will require a four-vote. Mayor Hornaday and two other councilmembers may be challenged as having conflicts. In the absence of a quorum an attorney can be appointed as a hearing officer.

 

Attorney Levesque explained conflicts of interest to include financial and bias and ex-parte communications. HCC 1.18.050 gives City Council the responsibility in making a determination on a complaint. The validity of the complaint must be insured thirty days after receiving the complaint. There is no requirement a complainant must go through the City first; they could bypass City Council and go directly to Superior Court.

 

Mayor Hornaday explained in the absence of a quorum, Attorney Levesque could be appointed as a hearing officer, or another attorney could be appointed to handle the hearing.

 

Councilmember Heimbuch asked if there was leeway to the four-vote requirement. He suggested three votes for determining the ethics violation. Attorney Levesque explained the rule of necessity for voting purposes, which does not apply in the ethics violation since an attorney could be chosen to decide the violation. The ethics hearing process is new to Homer; one hearing has been conducted in the past and it required four councilmembers.

 

Councilmember Stark explained Council had deadlocked on a councilmember appointment and amended code to allow only three votes when there are only five councilmembers. This code only applies when replacing a councilmember.

 

Councilmember Novak said Council is not the only body that can hear the complaint, and without the rule of necessity, Council may decide whether a presiding officer should make the decision. Councilmember Heimbuch clarified he was referring to the number of votes required to make a determination.

 

WYTHE/HEIMBUCH - MOVED IN THE PRESENCE OF A QUORUM AND ABSENCE OF A FOUR VOTE DECISION, THE MAJORITY OF THOSE TAKING PART IN THE PROCESS WILL BE ABLE TO MAKE A DETERMINATION.

 

Councilmember Stark noted the violation of code. Attorney Levesque was not prepared to advise, and suggested the precedence set be followed with a four person unanimous vote.

 

Councilmember Novak called for the question.

 

VOTE: NO. ROBERTS, WYTHE, STARK, NOVAK, HEIMBUCH.

 

Motion failed.

 

Attorney Levesque said the record on appeal is what the Clerk’s office has put together for today’s hearing.

 

Mayor Hornaday asked Tom Taffe if he would be called as a witness and Mr. Taffe responded affirmatively.

 

Mayor Hornaday excused himself and passed the gavel to Mayor Pro Tempore Novak to continue the proceeding.

 

Mayor Pro Tempore Novak stated Councilmember Doug Stark was listed as a witness.

 

Attorney Levesque asked Councilmember Stark if he had an ex-parte communications with anyone regarding the merits of the case.

 

Councilmember Stark answered no.

 

Complainant Taffe confirmed he was calling Councilmember Stark as a witness.

 

Councilmember Stark was excused from the proceeding.

 

Mayor Pro Tempore Novak stated a question has been raised with Councilmember Heimbuch’s discussion with both parties in the hearing.

 

Attorney Levesque asked Councilmember Heimbuch if he had ex-parte communications with anyone regarding the merits of the case.

 

Councilmember Heimbuch answered no.

 

Attorney Levesque asked Councilmember Heimbuch if he had ex-parte communications at all with the complainant or respondent, ie. Tom Taffe or Matt Shadle.

 

Councilmember Heimbuch answered affirmatively. He stated he approached both gentlemen due to his concern that an ethics complaint was before the Council, after his two month absence commercial fishing. Having just been through one and knowing the cost he didn’t care what the outcome was, just spending the money. He approached both individuals and asked under what conditions would the complaint go away. He was told by both of them that dropping the lawsuit would result in a resignation. Neither one of them were his ideas. There was no further ex-parte communication. A record of the outcome was a public document in the Homer News outlining what both parties were willing to do under certain circumstances. One was dropping of the ethics complaint and the other was the willingness to resign. The basics of something that would save the City money were right there.

 

Attorney Levesque asked if the ex-parte conversations were not at the same time, Councilmember Heimbuch answered no. Asked if the conversations were more akin to procedure conversations rather than merit, Councilmember Heimbuch stated there was no discussion of the merits. He had just gotten off the boat and had not yet read the complaints. He dissuaded Councilmember Shadle from talking about the complaints. Mr. Taffe did not talk about the complaints.

 

Attorney Levesque asked Councilmember Heimbuch if there was an opportunity for Councilmember Shadle to discuss the merits, but he had told Mr. Shadle not to discuss them? Councilmember Heimbuch answered that he did not have to, as the subject never came up. Councilmember Shadle got ready to tell his side of the story and Councilmember Heimbuch shut him up by telling him he was not even interested in it. There would have been an opportunity at any time, as either party could have engaged him in conversation by picking up the phone.

 

Attorney Levesque asked Councilmember Heimbuch if he was aware if he was a witness in the case.  Councilmember Heimbuch answered no, he did not feel he was well grounded in the complaint.

 

Mr. Taffe was asked if he intended to call Councilmember Heimbuch as a witness and he answered no.

 

Attorney Levesque asked Councilmember Heimbuch if he could be neutral in the matter. Councilmember Heimbuch stated he could, although he was confused about what Council would be deciding. He has a basic understanding if there was a conflict of interest that may lead to an ethics violation. He is unhappy of the financial burden on the City. He has heard lots of different opinions. Asked if after hearing the evidence if he could make a finding, Councilmember Heimbuch answered yes.

 

Attorney Levesque stated he had no recommendation for Councilmember Heimbuch’s conflict of interest or ex-parte communication.

 

Mayor Pro Tempore Novak ruled Councilmember does not have a conflict of interest.

 

Attorney Levesque explained Council will proceed in the same process it did in the only other precedent the City has. The Presiding Officer is Mayor Pro Tempore Novak. Any decisions he makes regarding ex-parte communication and conflicts of interest will stand. He will solely run the hearing and respond to objections. If he hears evidence that is redundant he will rule.

 

Preliminary matters were complete.

 

Councilmember Wythe said she never had conversation with Mr. Taffe or Mr. Shadle regarding the complaint. There were a couple communications from Mr. Heimbuch noting that he was having communication with them trying to eliminate the problem. Councilmember Wythe sent Councilmember Heimbuch an email telling him she did not want to be in an ex-parte situation.

 

Attorney Levesque said that is exactly what you do as an elected official. Asked if there was any reason why she could not hear the evidence and make a decision, Councilmember Wythe answered no.

 

Attorney Levesque recommended that Councilmember Wythe could sit.

 

Mayor Pro Tempore Novak ruled Councilmember Wythe could remain.

 

Councilmember Roberts stated she had no ex-parte communication with either of the parties regarding the issues to be decided today. She too spoke with Mr. Heimbuch and he explained what he way trying to do, but she had no discussion about the merits of the case.

 

Attorney Levesque asked Councilmember Roberts if there was a reason why she could not sit.

 

Councilmember Roberts answered no.

 

Attorney Levesque recommended that Councilmember Roberts could sit.

 

Mayor Pro Tempore Novak ruled Councilmember Roberts could remain.

 

Mayor Pro Tempore Novak stated he has had no ex-parte communication with the defendant or complainant and has no conflict of interest in the case. There is nothing to cause him to have a bias.

 

Attorney Levesque recommended Mayor Pro Tempore Novak could sit.

 

Councilmembers Heimbuch, Roberts and Wythe did not perceive a conflict.

 

Mayor Pro Tempore Novak remained as Presiding Officer.

 

Asked if Council would now determine if they would use Attorney Levesque as hearing officer or proceed with the hearing, Attorney Levesque answered it was Council’s discretion.

 

Council did not request to refer to a hearing officer.

 

Attorney Levesque stated that a letter was sent to both parties outlining how evidence would be taken. Asked if he had any questions about the procedure, Mr. Taffe answered he was troubled by the fact that Councilmember Shadle was not present. He understands that was his decision. Mr. Taffe stated he needs to question him as to his intent. Mr. Taffe understands he is able to file a civil lawsuit if unable to fully present the case here today.

 

Attorney Levesque referenced HCC 1.18.050(c). He advised Mr. Taffe he needed to make the decision himself whether to proceed here or in Superior Court.

 

Mr. Taffe stated he will proceed in Superior Court. He withdrew the complaint, stating he will take it to Superior Court.

 

City Clerk Jo Johnson was called and sworn to testify.

 

Mayor Pro Tempore Novak asked if Councilmember Shadle commented why he is not here today. City Clerk Johnson stated he made several comments to her, that the hearing could go on without him, that type of comment. Asked if there were any comments as to why he wasn’t here, City Clerk Johnson responded that he said he was going fishing and left Monday night. Asked if Mr. Shadle made any other comments, City Clerk Johnson answered he made several comments, they could do what they want to do in my absence, Council could go ahead and decide it without him. Asked if he made any indication that he wanted to be here, City Clerk Johnson said he told her he did not wish to be here.

 

Councilmember Heimbuch asked about intent, whether Council could make a decision without judging someone’s intent.

 

Attorney Levesque said evidence could have been presented and Council could have rendered a decision. Whether or not Mr. Taffe would be able to present evidence regarding willful or intentional action or acts is an unknown answer. He does not know what the evidence was.

 

Councilmember Heimbuch asked if there was a strict liability doctrine incumbent on someone to act in a certain way by virtue of the act.

 

Attorney Levesque answered it would not be a strict liability offense.

 

Councilmember Heimbuch asked how Council could engage the content without Councilmember Shadle present. He asked why the hearing was designed in a manner allowing him not to be here.

 

Attorney Levesque answered the ordinance may be tightened up. He does not have advice as to compelling someone to be present. It would depend on what the ordinance and Title 29 state. If municipalities use subpoena powers they generally go to court.

 

Councilmember Heimbuch noted many resources were mobilized to get to this point. He asked where the complaint go from here. Attorney Levesque said if the complaint is withdrawn, it is withdrawn; Council may investigate on its own.  

 

Mayor Pro Tempore Novak said taking the complaint to Superior Court just moves it to another legal body. The complaint is alive, just out of Council’s hands. Mr. Taffe has made the decision to withdraw because Councilmember Shadle is not present to speak for himself or present anything to the body. It does not resolve anything.

 

Councilmember Roberts noted HCC 1.18.080 that City Council may impose some kind of sanction.

 

Attorney Levesque said if the court finds a crime committed or the court finds a violation the City Council still has the power to admonish, sanction or penalize the accused.

 

Mayor Pro Tempore Novak asked if there was another situation where a violation could be found serious enough for a penalty. Attorney Levesque answered he was not aware of one.

 

Mr. Taffe stated he would be willing to have the process continue if there was a chance of getting Councilman Shadle here. If he could be convinced to appear and handle questions, Mr. Taffe has no objection to hearing the matter before Council. He objects to him not being here, as he needs to get Councilmember Shadle’s testimony. In a civil lawsuit he can subpoena and take a deposition. There are two types of problems, conflict of interest and misuse of office. The code calls for establishing if the actions were intentional. If he went forward today it may preclude the opportunity for a hearing in Superior Court. We need to look at the ethics code as there are a lot of uncharted waters. We need to know how to address issues. Stated for the record Mr. Taffe said his experience with city government here is very good. He has had a variety of dealings, including filing this complaint, and it is very unusual for someone in city government to do something he would even ask the question whether or not they were acting in an ethical manner. He has dealt with all different branches of city government. This is not an indictment of city government, or the City of Homer, it has to do with an individual and his actions.

 

Mayor Pro Tempore Novak asked Attorney Levesque for the option to continue the hearing when Councilmember Shadle is present and Council’s option to request or demand his presence.

 

Attorney Levesque answered that Mr. Taffe has withdrawn his complaint; it is done. Unless there is some subpoena power he is not aware of he is not sure how to get Councilmember Shadle here. Council may consider if there is anything they can do. He was charged under the code, notified to be here and failed to appear for whatever reasons. He asked what Council normally does when councilmembers don’t show at regularly scheduled hearings.

 

Mayor Pro Tempore Novak said councilmembers requesting excusal would notify the City Clerk and councilmembers would be notified. If they had an issue they would say so.

 

Councilmember Roberts said when the hearing was scheduled it was scheduled for a couple different dates. The Clerk’s office kept checking back to see when everyone could come. The only thing on the record is the attorney’s letter to Mr. Shadle indicating the date. She asked if that was part of the process, setting the date with Mr. Shadle?

 

City Clerk Johnson was recalled to testify.

 

City Clerk Johnson stated she worked with all the councilmembers emailing or telephoning them to find a compatible date for everyone. She stated she believed Mr. Shadle was out fishing at that time in the Bering Sea and she called and left messages, but did not hear back yea or nay if that was okay.

 

Councilmember Heimbuch asked if moving the complaint to Superior Court would result in the City’s liability for legal costs for Councilmember Shadle. 

 

Attorney Levesque said although he had not reviewed the City’s ordinance, his experience is that many municipalities do have a defense and indemnification provision for appointed and elected officials and employees. There are exceptions. If someone is found guilty of doing something intentionally the municipality does not defend. If it’s a matter of someone conducting themselves in their normal course of business, city ordinances that provide defense and indemnification are triggered.

 

Councilmember Heimbuch noted Councilmember Shadle is on public record stating if the ethics complaint is pulled from the body he will resign. He asked if Council could find it as a verbal or written contract and that Mr. Taffe has lived up to his agreement and Mr. Shadle’s resignation is effective.

 

Mr. Taffe stated his resignation was conditioned by not only withdrawal of the complaint, but that he would be allowed to run in a special election. It would be difficult to hold him to that promise. Mr. Taffe stated if a city official has an ethical violation that is not part of his normal business. He does not believe the city is required to provide representation.

 

Mr. Taffe stated when a city official does an ethical violation it is not part of his normal business. He is on his own, the city is not responsible.

 

Councilmember Heimbuch asked if a suit in Superior Court could be brought against Mr. Shadle, not against him as a councilmember.

 

Attorney Levesque answered although he was not sure everything Councilmember Shadle is accused of doing, he was in his official capacity as a councilmember.

 

Mayor Pro Tempore Novak referenced HCC 1.18.080(a). If the complaint were presented Council would be deliberating on evidence. The complainant has withdrawn the complaint and intends to file in Superior Court. The matter will be in another body’s hands. Nothing precludes Council from coming back at a later time and addressing a sanction or penalty on the fact that he did not want to be here.

 

Attorney Levesque said the lack of Councilmember Shadle’s appearance falls within the area city councils often discuss. Depending on precedent, councils self police themselves on members attendance, responsibility, and snubbing their nose at the rest of the council.

 

Councilmember Roberts referenced HCC 1.18.050 and asked if City Council could convene a hearing.

 

Attorney Levesque said Council polices itself and ethical violations within. Council makes a determination whether the complaint is valid. It has thirty days to make the conclusion, extended with good cause, and the City Council has a hearing. Council could order a third party to investigate the matter.

 

Councilmember Roberts asked if anticipation of the hearing today, and then it withdrawn, be good cause for the hearing within thirty days.

 

Attorney Levesque answered the code could be read different ways. Some could read it as Council must decide a complaint within thirty days. He believes that to be unreasonable. It would be intolerable to violate the fundamental due rights of process. There are thirty days to look at the complaint, see it is meritorious, take responsibility and enforce. Mr. Taffe’s withdrawing the complaint today will have no impact on the thirty day or good cause extension. Council needs to see if there will be a court action and then act accordingly.

 

Councilmember Heimbuch asked if Councilmember Shadle, given the time and opportunity to show up and request an extension without doing so, puts the City in financial jeopardy? Will the City be forced to pick up the tab for Superior Court action when reasonable action on Councilmember Shadle’s part could have on forestalled this?

 

Mayor Pro Tempore Novak said court time and additional costs for Councilmember Shadle will be addressed in the future.

 

Mr. Taffe said we have to educate our community about the importance of ethical issues. Anyone who looks at the newspaper sees unethical behavior. It affects everyone, affecting Alaska extraordinarily. We are losing credibility at the national level. Governor Palin is doing the right thing. We will be an example of the highest standards of ethical behavior. It is fundamental to the process of due government. Mr. Taffe is not a politician and not a member of any campaign. He is here because he found this set of circumstances exceptional. Eventually more evidence will be shown in Superior Court and then Council can make judgment of its own. He urged Council to take a close look at how the ethics code is written and consider requiring more transparency. We chose to exempt municipal officials as the State’s approach may have been too invasive. Disclosures initially will go a long way in avoiding a problem in the future.

 

COMMENTS OF THE AUDIENCE

 

Michael Armstrong, reporter for Homer News, referenced the document Councilmember Shadle presented to Council and Mayor earlier. He requested a copy as qualified under the open records act. It is a transmission between City Council and Mr. Shadle.

 

Attorney Levesque stated no councilmembers have read the letter. He asked that Council and the City Manager be allowed time to read the letter and then Mr. Armstrong go through the normal request procedure.  

 

COMMENTS OF THE CITY ATTORNEY

 

Attorney Levesque stated he intended to be resolved today, and then he could assist Council in drawing some type of conclusion. You cannot anticipate everything that will happen in these proceedings. He came here fully believing there would be some type of closure to this issue.

 

COMMENTS OF THE CITY CLERK

 

City Clerk Johnson had no comments.

 

COMMENTS OF THE CITY MANAGER

 

City Manager Wrede had no comments.

 

COMMENTS OF THE MAYOR

 

Mayor Pro Tempore Novak had no comments.

 

COMMENTS OF THE CITY COUNCIL

 

Councilmembers Heimbuch, Roberts, and Stark had no comments.

 

ADJOURNMENT

 

There being no further business to come before the Council, Mayor Pro Tempore Novak adjourned the meeting at 1:32 p.m. The next Regular Meeting is scheduled for Monday, September 24, 2007 at 7 p.m. The next Committee of the Whole is scheduled for Monday, September 24, 2007 at 4 p.m. A Special Meeting is scheduled for Monday, September 24, 2007 at 5 p.m. and a Worksession is scheduled for Monday, September 24, 2007 at 5:30 p.m. All meetings scheduled to be held in the Homer City Hall Council Chambers located at 491 E. Pioneer Avenue, Homer, Alaska.

 

 

______________________________

JO JOHNSON, CMC, CITY CLERK

 

Approved: _____________________

 

 

 



[1] Upon receipt of Councilmember Shadle’s letter Mayor Hornaday presented the letter to