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HomeMy WebLinkAbout12/12/2000 CS minutes MAYOR Gerald L. Farley TRUSTEES Timothy J. Corcoran Paul Wm. Hoefert Richard M. Lohrstorfer Dennis G. Prikkel Michaele W. Skowron Irvana K. Wilks VILLAGE MANAGER Michael E. Janonis OO@jj' !?@!ra ~.j Village of Mount Prospect \Z.-lL.c .O~ - 100 South Emerson Street Mount Prospect, Illinois 60056 Phone: Fax: TDD: (847) 392.6000 (847) 392-6022 (847) 392-6064 VILLAGE CLERK Velma W. Lowe MINUTES CLOSED SESSION DECEMBER 12, 2000 LSM[1,[t" OO[](O:o[g&~~ ,@)&'IT~ ,1~...;loIO The Closed Session was called to order by 6:08 p.m. by Mayor Gerald Farley. Present at the Closed Session were: Trustees Timothy Corcoran, Paul Hoefert, Richard Lohrstorfer, Dennis Prikkel, Michaele Skowron and Irvana Wilks. Staff present included Village Manager Michael Janonis, Assistant Village Manager David Strahl, Village Attorney Everette Hill, Attorneys Terry Ekl and Jim Sotos. The purpose of the Closed Session was to discuss Litigation. Litigation Village Manager Janonis wanted to provide the Board an update regarding the Class Action Lawsuit and to advise the Board that the plaintiffs have suggested a settlement offer and to provide information regarding the Department of Justice investigation status. ~ ~ Attorney Terry Ekl provided an overview of the ongoing Department of Justice ~ 59 investigation. He indicated that the Village had complied with all information requests ~ 11 from the DOJ and they were now in the process of analyzing the material the Village ~ ~ had provided. Mr. Ekl indicated that he has met with Justice Department officials on a @sf') number of occasions to answer questions and check on the status of the investigation. d ~ He indicated that the dialogue has been cordial and that the DOJ appreciated the ~ ~ Village's cooperation. It was Mr. Ekl's opinion that it would take several months for the ~ @l DOJ to complete their preliminary investigation. At that point, it might be appropriate for the Village to sit down with the lead Investigators to determine what areas of concern the DOJ had identified. The one area where Mr. Ekl sensed concern on the part of the DOJ is with the Village's Drinking Ordinance. Village Board members asked that they be kept informed of any further developments with the investigation. The status of the pending Class Action Lawsuit was provided by Attorney Jim Sotos. Mr. Sotos indicated that the Village had filed routine Motions to dismiss the Case and, as expected, those Motions were in large part denied. The Discovery process was currently underway. Mr. Sotos noted that the Plaintiffs' attorneys had been somewhat tardy in responding to the Village's request for certain Discovery materials. Mr. Sotos indicated that the Village would ask the Judge in the Case to rule that the Plaintiffs' lack of response be deemed admissions in favor of the Village. At this point, he was not sure how that would be resolved. Mr. Sotos further discussed with Board members the estimated size of the Plaintiff Class and the implications it presented in defending the Case. Mr. Sotos also noted that the Plaintiffs' attorneys had recently approached the Village about the possibility of beginning settlement discussions. Mr. Sotos saw this as a potentially positive sign and recommended that he be given permission to engage in such discussions. He noted that while he felt the Village's position was very strong, a favorable settlement agreement might prove to be in the Village's best interest given the uncertainties of the outcome of a Jury trial. After considerable discussion by the Village Board, Mr. Sotos was given authority to engage in settlement discussions with the Plaintiffs' attorneys. Again, the Village Board asked to be kept informed of the progress of those discussions. Village Attorney Everette Hill provided an overview regarding the Village's insurance exposure to date. He stated the Village has a $750,000 deductible and has coverage from $750,000 to $1 million and then the High Level Access Pool takes liability over $1 million. Insurance companies have been advised as to where the Case stands and at this point, we have approximately $180,000 into the Case and once the Village reaches $250,000, the invoices will be passed on to the insurance company for reimbursement. Settlement options will be forwarded to the insurance companies for further discussion. The meeting was adjourned with no additional action or direction presented by the Village Board at 7:21 p.m. ~ i):r~r(J DAVID STRAHL Assistant Village Manager DS/rcc 2