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HomeMy WebLinkAbout01/14/1997 CS minutes MAYOR Gerald L. Farley ii>~~ lID&'iirnJ,.,: ~D -0 TRUSTEES George A. Clowes Timothy J. Corcoran Richard N. Hendricks Paul Wm. Hoefert Arlene A. Juracek Irvana K. Wilks Phone: 847/392-6000 Fax: 847/392-6022 TDD: 847/392-6064 VILLAGE MANAGER Michael E. Janonis Village of Mount Prospect VILLAGE CLERK Carol A. Fields 100 South Emerson Street Mount Prospect, Illinois 60056 MINUTES CLOSED SESSION JANUARY 14,1997 The Closed Session was called to order at 10:27 p.m., in the conference room of the Senior Citizens' Center, 50 South Emerson Street, for the purpose of discussing Litigation and Personnel. Present at the Closed Session were: Mayor Gerald L. Farley; Trustees George Clowes, Timothy Corcoran, Richard Hendricks, Paul Hoefert, Arlene Juracek and Irvana Wilks. Also present were: Assistant Village Manager David Strahl and Village Attorney Everette Hill. Trustee Arlene Juracek requested that her name be included in place of Trustee Skowron on the list of Trustees present at the Closed Session of January 7, 1997. Motion by Trustee Hoefert and Seconded by Trustee Clowes to approve the Closed Session Minutes of January 7, 1997. Trustee Richard Hendricks voted not to approve the Minutes. Minutes were approved. Litiaation Issue #1 Attorney Everette Hill provided a general overview of the RJN Case to date. He stated the Village had previously demanded $545,000 and has continued to demand that amount in any settlement discussions. He stated that depositions have been concluded and as it stands right now, RJN cannot find an expert to attest to their side of the case. The Village has hired an expert and who has privately voiced concerns that the Village demand might be too high in settlement discussions. The Village's expert witness suggested the Village determine the entire Hatlen Heights' project cost in addition of the cost of design and the cost to build the correction as a basis for the demand. He stated the Village expert witness is more comfortable with the price in the $475,000 range in terms of settlement discussions. RJN has asked for consideration, unofficially, of approximately $250,000 and the Village representatives have responded by stating the figure was much too low. He feels that RJN is willing to put more money on the table if the Village is willing to possibly accept payments. Mr. Hill stated legal fees to date have cost the Village approximately $43,000 plus an additional $5,000 for the expert witness. He stated there have been approximately 19 depositions to date and if the Case goes before a jury, there is probably an additional $40,000-$50,000 in attorney fees and another $10,000 in expert witness testimony. He is requesting Village Board authority to tender a settlement offer of between $350,000-$400,000 and stated that he would also reject any unsecured payment schedules offered by RJN. ,fir ~ I .q. 11.... I A number of Trustees voiced concern about RJN's financial condition and whether a payment schedule would be in the best interest of the Village. There was also discussion as to if the Village would receive any money if the company filed bankruptcy. Attorney Hill stated that the Village would get in line just as any other creditor in bankruptcy proceedings and a review of the financial condition of the company may be in order. The Village would not have an opportunity to get a Court award of attorney fees unless there was proven fraud or misrepresentation. Attorney Hill further stated that he feels this is a very strong case for the Village if it goes to trial because RJN cannot find an expert to support their conclusions. Consensus of the Village Board was to consider a possible settlement offer of between $350,000 to $400,000 to RJN. Trustee Hendricks did not concur with the consensus. Issue #2 Mayor Farley stated he feels that Trustee Hendricks' comments in open session may have put the Village in jeopardy in terms of possible legal action against the Village. o ~..... ~r. ~ , \ I :~ L..~ L.-: @:!] dp a~ l0:,@ Trustee Hendricks stated that he felt his comments were appropriate because a resident told him one thing and the Village Manager is saying something else at this point and feels the public should know about it. Attorney Hill stated this matter is probably more appropriate to be discussed as a Personnel matter relative to Closed Session. Therefore, the Village Board agreed that further discussion of this topic would be related to Personnel according to State Statute criteria. Personnel Attorney Hill stated that there appears to be very little basis for the comments and stated that reckless statements such as this, have put the Village at risk and may have exposed it to possible litigation. Trustee Hendricks stated that he has concerns about the Inspectors which are involved and only stated that the person involved was a Plumbing Inspector. He stated the resident told him about the pay-off. He feels it is important to bring this issue under review of an independent source. Attorney Hill stated that he has a legal concern relating to what the resident mayor may not have said about the employee and Trustee Hendricks' comments may have subjected the resident to exposure of a lawsuit by the employee which, in turn, could lead to the resident suing the Village. Trustee Corcoran stated that since the inspections and building permits are open for Freedom of Information requests, it would be very easy for someone to obtain the information about the Inspector and the address in question. Trustee Wilks stated the Village Manager had advised the Village Board of this issue and found that there was no wrong doing and statements of Trustee Hendricks regarding the residents' allegation were not the same statements made to the Village Manager. She stated she is comfortable with the investigation the Village Manager has conducted. Trustee Hendricks stated that he had demanded a written report from the Village Manager and did not receive one. Trustee Clowes stated that he is concerned that Trustee Hendricks' statements are putting the Village at legal risk. Mayor Farley asked the Board members whether there should be a public statement issued about the liability exposure. Attorney Hill suggested the Closed Session be concluded and the Board move into open session since this discussion would be more appropriate for an open session discussion. Closed Session was adjourned at 11 :06 p.m. and the Village Board members moved immediately back into open session at 11 :07 p.m. Respectfully submitted, )~SWJ DAVID STRAHL Assistant Village Manager DSlrcc X:\USERSlROBERTAClWINlOFFICElMEJlCS\114CS.MIN