1996-08-09MINUTES-MOUND CITY COUNCIL-EMERGENCY MEETING- AUGUST 9, 1996- 6:45
P.M. MOUND CITY COUNCIL CHAMBERS
A meeting of the Mound City Council was held in emergency session at Mound City Hall on Friday,
August 9, 1996. The meeting was called for 6:45 p.m. and was called to order at 7:05 p.m. The roll
was taken and the following members of the City Council were present: Mayor Bob Polston and
Councilmembers Ahrens, Hanus, Jensen and Jessen. Also Present: Gino Businaro, Finance Director;
Curt Pearson, City Attorney; Jerry Rice, Lead Counsel for the City in the City of Mound v. Piper
Jaffray legal dispute and with the firm of Mahoney, Hagberg and Rice; and Ed Shukle, City
Manager. (Please note that The Laker was notified by telephone and a message was left on the
newspaper's recorder at approximately 6:30 p.m., August 9, 1996).
Mr. Pearson indicated that this was an emergency meeting as authorized by Minnesota Statutes
Section 471.705, Subdivision 1 c-(c). The meeting was called because of the circumstances that, in
the judgment of city attorney, city manager and city council required immediate consideration. The
trial before a panel of arbiters is to commence on August 12, 1996 and a large number of people will
be working all weekend and incurring substantial cost and expense for the parties.
Mayor Polston called the meeting to order and asked Curt Pearson to introduce the matter to those
present. Mr. Pearson indicated that he has been working very hard to try and settle the legal dispute
between the City of Mound and Piper Jaffray over the City's investment in the Institutional
Government Income Portfolio Fund or "The Fund" for a number of weeks. While he has been
working with Piper officials on a possible settlement, Jerry Rice, Lead Counsel for the City and of
the firm of Mahoney, Hagberg and Rice, has been preparing for the scheduled arbitration the week
of August 12. Mr. Pearson contacted Piper officials on Friday, August 9 to again indicate the City's
interest in settling the dispute and being able to "shutoff the legal fee spicket" before the weekend.
Mr. Pearson contacted Ed Shukle, City Manager late Friday afternoon indicating that Piper was
proposing a settlement and that there was a need to have an emergency city council meeting to
discuss it. Consequently, Mr. Shukle, contacted the Mayor and City Council and a meeting was
scheduled for 6:45 p.m. at City Hall.
Mr. Pearson asked that the City Council go into executive session to discuss the proposed settlement.
At 7:55 p.m. the City Council returned from executive session. Mr. Pearson indicated that he had
briefed the Council on the settlement discussions with Piper Jaffray. The discussions included the
parameters for settlement. If the Council agreed to the settlement parameters, the City and Piper
would go forward in the drafting of documents and the final settlement would be returned to the City
Council for approval at a later date. It was the Council consensus to stop the legal process now and
work out the details of a settlement.
Motion was made by Ahrens, seconded by Jensen to have the City Attorney work with Piper
officials to reduce to writing the settlement agreement and to bring that agreement back to the
Council at a future date for approval. A roll call vote was taken on the motion and it passed
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Minutes of the Mound City Council
Emergency City Council Meeting
August 9, 1996
Page 2
unanimously.
There was no other business to come before the City Council. It was moved by Ahrens, seconded
by Jessen and carded unanimously to adjourn the emergency city council meeting. The meeting was
adjourned at 7:58 p.m.
City Manager
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