AMENDED
MINUTES
FINANCE COMMITTEE
MEMBERS: Chairman John VanderLeest, Tony Theisen, Tom
Weber, and Steven Deneys
OTHERS PRESENT: Dawn Foeller, Angie Dart, Russ Schwandt,
Allison Swanson, Ald. Piton, Ald. DeWane, Police Chief Arts, Fire Chief Roemer,
Gregg Gunta, John Wolfgang, Ald. Jeffreys,
Ald. Kocha, and others.
1. Roll Call.
2. Approval
of the Agenda.
A motion was made by
Ald. Deneys , seconded by Ald. Weber, and carried to approve the agenda.
3. Approval of the minutes of the Finance
Committee meeting of December 8, 2009.
A motion was made by
Ald. Theisen, seconded by Ald. Deneys, and carried to approve the minutes of
the Finance Committee meeting of December 8, 2009.
4. Request by Ald. Piton to review the current
and possible future costs of the possible million dollar lawsuit filed by Ald.
VanderLeest against the City.
The Committee may convene in closed session
pursuant to Sections 19.85(1)(g), Wis. Stats., to confer with legal counsel
with respect to litigation in which it is or is likely to become involved. The Committee may thereafter reconvene in
open session pursuant to Section 19.85(2), Wis. Stats., to report the results
of the closed session and consider the balance of the agenda.
Ald. VanderLeest
explained that Ald. Theisen will be leading the committee on this item as Vice
Chairman.
Before turning it
over to Ald. Theisen, Ald. VanderLeest made a statement that he has a right and
duty to defend his name and reputation from a false arrest and he will see that
process through. He believes the
Committee can review the respective bills and lawsuits related to this matter,
but discussing the specifics of the case and the likelihood of success or
failure are not part of the normal discussion.
The Finance Committee does not typically review lawsuits that are
pending. Ald. VanderLeest made reference
to the Sonnenberg case and other issues that have
been before the committee in the past.
Ald. Theisen read the
agenda item to the committee.
City Attorney Allison
Swanson led the discussion and introduced Attorneys Gregg Gunta
and John Wolfgang with the Gunta and Reak law firm that has represented the
City in other such civil rights cases.
They have appeared to discuss the costs involved and a timeline in this
litigation.
Ald. Theisen asked
how the City normally handles something like this, if it is proper procedure to
discuss a situation like this at a Finance Committee meeting. Attorney Swanson explained that all claims
that are filed against the City go to the Claims Committee and are reported out
to the Finance Committee on a quarterly basis.
We have reviewed litigation outside the Claims Committee such as the
Younkers litigation and the Mennen case.
Ald. VanderLeest made reference to the Sonnenberg case. Attorney Swanson stated there was not a lawsuit
filed against the City for that case.
Ald. Weber requested
that Attorney Swanson stop the committee proceedings if a question should be
put into closed session.
Ald. Theisen asked
Ald. Piton what questions he had regarding this agenda item that is on the
agenda at his request. Ald. Piton is
interested in the current cost the City has incurred in defending itself
against this lawsuit and any foreseeable costs it may incur in the future. Specifically, what are the minimum and
maximum costs to the City, and how much money and staff time has been spent
thus far.
Attorney Swanson
explained the City has received invoices through December 7, 2009 amounting to
$36,352. Staff time, which includes the
gathering of information by both the Police Department and the Law Department,
totals approximately $15,000 to date.
There is also an additional estimated expense of $10,000 that has been
incurred within the last month that is not in the total given.
Attorney Gregg Gunta is the attorney representing the City in this lawsuit
and has represented the City in past “1983 actions,” which refers to these
types of federal civil rights lawsuits.
What is unique about these cases is they do not have a damage cap and a
successful plaintiff can recoup attorneys’ fees.
In regards to
possible future costs, Attorney Swanson explained the City has a self-insured
retention (SIR), which is essentially a deductible, of $150,000. Ms. Swanson recommends that discussion of
additional costs be taken under closed session.
Attorney Gregg Gunta further went on to state that he is not comfortable
discussing any issues in this matter while in open session and in the presence
of Ald. VanderLeest. He has ethical
obligations to the City of Green Bay and individual officers named in the case
and does not want to prejudice the case and a potential jury pool. He will discuss in closed session, but only
in the absence of the plaintiff, John VanderLeest.
Ald. Theisen asked
Attorney Swanson if she felt it necessary to bring these two attorneys in to
answer the question at hand.
Attorney Swanson
stated John VanderLeest has filed an ethics complaint against herself and
Attorney Gunta that were immediately dismissed.
In addition, Mr. VanderLeest has made threatening remarks towards her
and the City. With the fact that it is a
significant case with substantial costs involved to both the City and the City’s
insurer, Cities and Villages Mutual Insurance Company (CVMIC), it thus warrants
such representation by Gunta & Reak.
These attorneys were here earlier today to review documentation related
to the case, so they made the trip for additional reasons as well.
Attorney Gunta
explained that there are approximately 41 cities in CVMIC, and he represents
virtually all those entities in such federal civil rights cases. He appears before numerous councils and
subcommittees. Most of the clients want
to know the potential costs involved in going forward with these cases, and he
is more than willing to lay out what
those costs will be. That is the type of
information he usually provides to closed session meetings. This is a very common occurrence that goes on
in virtually every city. He has reported
to the City of Green Bay in past cases.
Being that the City is the client, he will speak to the committee in
closed session if the City so wishes.
Ald. DeWane stated
that he has a related item on the agenda that could have been answered by the
City Attorney and does not agree with bringing in high profile attorneys to
answer these simple questions when the answers are at the disposal of the
City’s own attorney.
Attorney Swanson
explained that there is an hourly rate the City will be charged for the outside
attorneys’ appearance. Once in closed
session, there are always additional questions raised than simply the costs
associated with the case. Attorney
Swanson stated that case strategy will directly affect future costs.
Ald. Weber asked Ald.
VanderLeest if he would recuse himself if they move into closed session.
Ald. VanderLeest said
that he would recuse himself and step out during closed session but asked the
committee to stick to the agenda item at hand.
Ald. Weber explained
that Attorney Swanson acted appropriately by requesting the appearance of
outside council. She was hired to defend
the City in municipal law. When the City
is sued, it should contract with outside council with the expertise necessary to
protect the insurance company (CVMIC) since it has a vested interest in this
case. How the committee proceeds in this
case will affect the cost.
Ald. Theisen asked if
it would be appropriate for Ald. VanderLeest to participate in this agenda item
as an acting member of the committee. Attorney
Swanson stated that he has a direct conflict of interest and cannot vote on any
motion on this item. He may speak to the
item as a citizen given that it is a public meeting, but he must abstain from
voting.
A motion was made by
Ald. Weber, seconded by Ald. Deneys, to open the floor to hear from interested
parties.
Jim Delaney, 1008
Coggnes Ct., asked why this item was brought forward now and why it could not
be addressed by the City Attorney.
Ald. Theisen explained
that Ald. Piton requested that it be addressed by the committee. Any alderman or citizen in Green Bay can
request something be put on an agenda through a written request to the City
Clerk’s office. The City does not
question the motive behind why an item is brought forward.
Mr. Delaney believes
this is a waste of time and money and is politically motivated. The information Ald. Piton requested could
have been provided in a letter rather than brought before the Finance Committee.
Ald. Jeffreys explained
that since this is a civil rights issue, there are certain costs that could be
incurred, an area that is not a specialty of Attorney Swanson. She is anxious to hear from these attorneys.
John Pollick, 819 4th
Street, De Pere, WI asked if it is within the scope of this committee to
identify what is causing lawsuits.
Ald. Theisen read the
agenda item aloud. It was a request by
Ald. Piton and it went on the agenda. He
has no preconceived notions of what the committee will do with this agenda item
until they sit down. All he is here to
do is make sure each agenda item receives attention and is handled. The committee sticks to the agenda item as it
is stated.
Mr. Delaney stated
that he does not feel it is appropriate to have a closed session.
Ald. Theisen stated
that the State allows for committees to enter into closed session under certain
circumstances. It only happens if the committee
votes to have it, which requires a member to make a motion to close the meeting
for legal reasons.
A motion was made by
Ald. Theisen, seconded by Ald. Deneys, and carried to move back to the regular
order of business.
Ald. Theisen asked
Ald. Piton if his questions in this matter had been addressed. He stated they had not.
A motion was made by
Ald. Weber to move into closed session.
He read the closed session language, Ald. Deneys seconded the motion.
Ald. VanderLeest made
a general comment. He does not want his
case to be treated differently from other similar lawsuits. He believes he is being treated unfairly - it
is unprecedented for this committee to discuss legal strategies and details
beyond legal bills. He has a right to
defend his name and his reputation from the false arrest and he will see it
through.
Ald. Weber stated he
perceived Ald. VanderLeest’s statement to be accusatory and offensive to think
that the members will deviate from the item and discuss matters beyond the
scope.
Ald. VanderLeest
stated he did not mean for it to be accusatory.
At this time, Ald. VanderLeest and others stepped out of the room.
The motion to move
into closed session was carried.
A motion was made by
Ald. Deneys, seconded by Ald. Weber, and carried to move back into open
session.
Guests, including
Ald. VanderLeest, were brought back in.
A motion was made by
Ald. Weber, seconded by Ald. Deneys, to receive and place on file. Ald. VanderLeest abstained.
5. Request by Ald. DeWane to have the law
department give a summary of all the City's lawsuits costs for the last two
years.
The Committee may convene in closed session
pursuant to Sections 19.85(1)(g), Wis. Stats., to confer with legal counsel
with respect to litigation in which it is or is likely to become involved. The Committee may thereafter reconvene in
open session pursuant to Section 19.85(2), Wis. Stats., to report the results
of the closed session and consider the balance of the agenda.
Ald.
DeWane requested this information due to several inquiries he encountered from
constituents while he was campaigning.
The City has had a considerable amount of lawsuits against it, and as a
Council member, he is asking that we look into why this is happening, if it can
be pinpointed at one particular department or party, and if there is a
possibility at preventing any future lawsuits.
Finance
Director, Dawn Foeller, had clarified with Ald. DeWane his communication to
include the number of lawsuits pending against the City and their potential
costs to the City. Attorney Allison
Swanson put together a list of claims, legal expenses, and costs incurred
through settlements from litigations within the last two years for the
communication. Please see below, or the
attachment following the minutes, for the individual breakdowns. In whole, the City has spent $1,138,062.22 in
legal expenses and settlements.
|
Case |
Legal
Expense |
Settlement |
|
Younkers |
$763,021.30 |
Pending |
|
Press Gazette |
$8,978.00 |
$16,962.25 |
|
Appleton Papers (PCB) |
$67,395.40 |
Additional legal expenses to be reimbursed |
|
Erickson v. City of Green Bay |
$5,551.67 |
$100,000.00 |
|
Greene v. City of Green Bay |
$92,981.69 |
$40,000.00 |
|
Lerch v.
City of Green Bay |
$15,656.89 |
Pending |
|
Mennen v. City of Green Bay |
$35,877.11 |
Dismissed |
|
Thayse v.
City of Green Bay |
$7,520.50 |
Dismissed |
|
Vander Leest v. City of Green Bay |
$36,352.59 |
Pending |
|
Vicenzi v.
City of Green Bay |
$100,527.07 |
$50,000.00 |
|
Waldron v. City of Green Bay |
$4,200.00 |
Pending |
|
Santos v. City of Green Bay |
|
Pending |
|
Total |
$1,138,062.22 |
|
Attorney
Swanson reviewed each of the individual claims and explained that the legal expenses
listed are for outside attorney costs.
The claims included on this list are those that were recommended by the City’s
insurance company to attain outside council to handle.
A
motion was made by Ald. Theisen, seconded by Ald Deneys, to open the
floor. Motion carried.
John
Pollick, 819 4th St, De Pere, WI asked if
any officers involved in these cases were also involved in the VanderLeest
case.
Ald.
VanderLeest explained that summaries of the various cases had been given, but
further detail into each case falls outside the scope of this item. It was asked that the public adhere to the
scope of the question involving legal costs incurred from lawsuits against the
City.
Dave
VanderLeest, 102 S. Ashland Ave, stated he had filed
a claim against the City dated December 15.
Attorney Swanson stated that the claim filed by Mr. VanderLeest is being
handled internally and that is why it is not on the list.
Mr.
Dave VanderLeest asked how many lawsuits are pending
that are being handled by in-house council. Attorney Swanson stated that the City’s law
department handles cases involving the Housing Authority, Redevelopment
Authority, bankruptcy cases, municipal court issues and the volume changes
constantly.
A
motion to return to the regular order of business was made by Ald. Deneys,
seconded by Ald. Weber. Motion carried.
Ald.
VanderLeest asked if the City should be handling cases differently, settling to
avoid additional costs, and if there is any training that could potentially
reduce the likelihood of any such claims happening again.
Attorney
Swanson said she did not see any significant problems with staff. With regard to accident claims, the City does
look into driving conduct since many employees are out on the road covering a
lot of miles.
Ald.
Theisen asked how much of the total legal expenses is recovered from
insurance. The City’s self-insured
retention is $150,000 ($200,000 in 2010) for each occurrence and $600,000 aggregate. Cities and Villages Mutual Insurance Company
(CVMIC) is responsible for payment of claims over the City’s self-insured retention
of $150,000 up to $2,000,000. From $2
million to $10 million, the Insurance Company of Pennsylvania covers the
City. Anything over $10 million is the
City’s responsibility.
Ald.
Theisen asked if costs could be reduced if some claims are handled in-house. Attorney Swanson explained that CVMIC does
not legally require outside council to defend the city, but being that it is a
collective effort, they strongly recommend it, and we need to respect them as
our insurer. Furthermore, the City’s
legal staff does do a lot of pulling the required documentation and organizing the
information for outside council, which in turn reduces cost.
Ald.
Weber asked about the type of training CVMIC gave City staff, and Attorney
Swanson said staff receives additional training on harassment, safe driving,
supervisory training. Additional
training comes from the Employee Resource Center. Risk Manager, Colleen Hintz, also listed
additional classes offered by CVMIC.
A
motion was made by Ald. Theisen, seconded by Ald. Deneys,
and carried to receive and place on file.
6. Request
by Ald. VanderLeest for the Assessor’s office to supply the committee with a
summary of how the City is improving the revaluation process.
City Assessor, Russ Schwandt, summarized a
memo that he drafted for the committee, which can be found as an attachment
following the minutes.
Ald. VanderLeest asked about the
discrepancies involved with newer purchases with regard to the wide difference
between the appraised value and the purchase price and when these figures will
be entered into the system. Mr. Schwandt
explained that the City will be receiving the data from the State
electronically, as opposed to paper copies in the past, which should expedite
the process.
Ald. Weber asked about the formulas involved
in assessing story and a halves and attic areas. Mr. Schwandt explained that an attic area is
considered 50% of the ground floor as measured from the outside; story and a
half is 75% of the ground floor.
Ald. Weber asked about what constitutes below
grade improvements. Mr. Schwandt
explained that they look at three surfaces: wall, floor, and ceiling. If those are in some sort of finished manner
involving carpet, tile, plaster, drywall, etc, then they consider that some
kind of improvement. There is a
difference between finished basement living and recreation room living depending
on whether or not improvements are consistent with the upstairs living.
Russ Schwandt explained the upgrades to the
Assessor’s website to include age, square footage, sketches, photos, tax
records, etc. of the properties.
A motion was made by Ald. Deneys, seconded by
Ald. Theisen, and carried to receive and place on file.
7. Request
by the Fire Chief to transfer $58,699.92 from the City’s contingency fund to
the Fire Department in order to supply the 25% matching funds required to
receive the $234,799.97 Port Security Grant.
Information
provided by Assistant Chief Goplin is attached following the minutes.
A
motion was made by Ald. Theisen, seconded by Ald. Deneys, and carried to
approve.
8. Report
by the Risk Manager that the City entered into a two year agreement with Safety
National for excess worker’s compensation.
The Risk Manager is requesting utilizing some of the savings toward the
purchase of high-visibility rain gear for Department of Public works employees
in the amount of $3,000. Approval to
bind the City was verbally received from Ald. Vanderleest on December 23, 2009
in order to insure continued coverage and to save $10,000 in 2010 on the
premium.
Risk Manager, Colleen Hintz, appeared to
field any questions the committee may have.
There was a question as to how the savings would be transferred to the
Department of Public Works. Finance
Director Dawn Foeller explained that this would require a resolution be drafted
outlining the transfer between two line items which will be brought forward at
the next Common Council meeting.
A motion was made by Ald. Weber, seconded by
Ald. Deneys, and carried to approve.
9. Report of the Purchasing Agent:
a.
Report purchase of
the Cisco Phone System Server upgrades to the low responsive and responsible
vendor, CDW Government for the amount of $22,762. Funds from the 421-IT
Capital Equipment. PO issued as servers were needed to complete phone
system upgrade.
A motion was made by Ald. Theisen, seconded
by Ald. Deneys, and carried to approve.
b.
Report purchase from
the State Contract of Philips Heartstart Monitors for the GBFD to SOS
Technologies for the amount of $114,630. Funds from the 2010, 101 General
Funds. PO issued, saved $15,000 by ordering before 12/31/09.
A motion was made by Ald. Deneys, seconded by
Ald. Weber, and carried to approve.
c.
Report purchase from
State Contract for Extended Warranty & Maintenance Agreement for the
Phillips Heartstart Monitors for the GBFD to SOS Technologies for the amount of
$16,200. Funds from the 2010,101 General Funds. PO issued, saved
$1296 by ordering before 12/31/09.
Ald. VanderLeest asked why we need to
purchase an extended warranty. Fire
Chief Roemer explained that all old units will be phased out and replaced with
the new units.
Ald. Theisen asked if it was necessary to
purchase an extended warranty.
Ms. Foeller explained that the City does not
habitually purchase extended warranties, but does so based on the type of
purchase and a cost/benefit analysis.
A motion was made by Ald. Theisen, seconded
by Ald. Deneys , and carried to approve.
10. Request by the
Treasurer to add Bank First National to the list of financial institutions the
City can do business with.
Upon speaking with Brown County Treasurer
Kerry Blaney, Assistant Finance Director, Angela Dart found this to be another
option for the City for our investment.
A motion was made by Ald. Weber, seconded by
Ald. Deneys, and carried to approve.
11. Request by the
Finance Director to transfer fund balance from fund 415 - I-43
Park Public Works in the amount of $6,966.62 to fund 418 – City Hall
Maintenance to cover costs associated with removal of asbestos tile and other
improvements made at City Hall. Fund 415
– I-43 Park Public Works has not been used in over 10 years.
This fund has been sitting out there for
quite some time without any activity. It
was originally set up in the 1980’s to serve the purpose of accounting for the
acquisition and development of the I-43 Industrial Park. Since its inception, two separate TIF’s have
been set up to handle that activity making this fund obsolete.
Ms. Foeller explained that City Hall has a
fair amount of asbestos that needs to be removed, and such costs for removal
currently lie outside the budget.
Upgrades to lighting systems in hallways as an effort to save energy is
another area such funds could be applied, in addition to other City Hall
maintenance items.
A motion was made by Ald. Weber, seconded by
Ald. Deneys, and carried to approve.
A motion was made by Ald. Deneys, seconded by
Ald. Theisen, and carried to adjourn.
The meeting adjourned at 7:35 p.m.
Respectfully submitted,
Andrea Canadeo
Recording Secretary
2010 Contingency Fund
$51,300.08
1).
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