City Council

May 23, 2017 MINOT CITY COUNCIL - SPECIAL MEETING – May 23, 2017 at 4:00 P.M. ROLL CALL: Members Present: Hedberg, Jantzer, Kossan, Lehner, Olson, Pankow, Podrygula, Schuler, Shomento, Sipma, Straight Members Absent: Berg, Frantsvog, Withus Mayor Barney presiding and led the Council in the Pledge of Allegiance. EXECUTIVE SESSION Mayor Barney stated the next item on the agenda would be an executive session. The legal authority for closing this portion of the meeting is N.D.C.C 44-04-17.1, 19.1, and 19.2. The topic of this executive session is First Western Bank & Trust v. North Dakota Port Services; City of Minot 51-2017-CV-732- Attorney Consultation. The Mayor stated, at this time, a motion would be needed in order to discuss the next topic in executive session rather than in an open meeting. Whereupon, Alderman Jantzer moved the City Council move to an executive session. Motion seconded by Alderman Hedberg, and carried by the following roll call vote: ayes: Hedberg, Jantzer, Kossan, Lehner, Olson, Pankow, Podrygula, Schuler, Shomento, Sipma; nays: Straight. The Mayor then stated the executive session will be recorded and all members of the governing body are reminded to limit their discussion during the executive session to the announced topic. Any collective decision, collective commitment, or other final action by the governing body must occur after it reconvenes in an open meeting, unless final action is specifically required by law to be taken during the executive session. The prohibition on taking final action during the executive session did not apply to providing guidance or instructions to our attorney or counsel. Mayor Barney asked the members of the public attending the meeting to leave the room. He stated the Council anticipated adjourning the executive session, and reconvening the open portion of the meeting in approximately ten minutes. The executive session began at 4:05 pm and was attended by all members of the City Council with the exception of Berg, Frantsvog, and Withus who were absent, as well as the Mayor, City Manager, City Clerk, City Attorney, and Finance Director. At 4:27 pm, Alderman Lehner moved the City Council adjourn the executive session and return to the regular City Council meeting. Motion seconded by Alderman Shomento and carried by the following roll call vote: ayes: Hedberg, Jantzer, Kossan, Lehner, Olson, Pankow, Podrygula, Schuler, Shomento, Sipma, Straight. nays: none. The public was invited to return to the meeting room with the City Council meeting back in session.  May 23, 2017 Alderman Jantzer moved the City Council approve the attorneys of Bakke, Grinolds, and Wiederholt as special counsel for the City of Minot with regard to First Western Bank & Trust v. North Dakota Port Services; City of Minot – 51-2017-CV-732. Motion seconded by Alderman Olson. Alderman Podrygula requested the City Attorney give some background information on the attorneys suggested for special counsel. The City Attorney responded by saying, Bakke, Grinolds, and Wiederholt are attorneys provided through the North Dakota Reserve Fund. The City has worked with them during the Auer case among others. She added, a bid process is not necessary under state law and she reached out to other local attorneys. She consulted with the City Manager and they decided Bakke, Grinolds, and Wiederholt would be the best choice. Alderman Podrygula then asked if there would be a conflict in the case since First Western Bank & Trust is also the City’s primary bank. He requested the law firm’s opinion on fiduciary responsibility on behalf of the bank. Upon questioning by Alderman Schuler, the City Attorney stated, the firm has 30 years of experience and the rates are in line with other firm’s prices with equivalent experience. Upon further questioning, Ms. Hendershot said, the City hasn’t seen the rates from previous cases as the services were provided by insurance reserve funds. Alderman Sipma asked for information on the next step the City must take in the case. The City Attorney stated, the City has 21 days to file notice then the other party will likely proceed with discovery. Alderman Podrygula asked who drafted the original contract, to which Ms. Hendershot replied by saying, in 2009, Bill Bergman was the representative for the City but she believes Gary Sorenson was appointed special counsel. The City Attorney requested the Council also move to authorize the Mayor to sign any necessary retainer agreement relating to the approval of Bakke, Grinolds, and Wiederholt as special counsel for the City of Minot. Alderman Jantzer amended his motion. Alderman Olson amended her second. Whereupon a vote was taken on the above motion by Alderman Jantzer, seconded by Alderman Olson, as amended and carried by the following roll call vote: ayes: Hedberg, Jantzer, Kossan, Lehner, Olson, Pankow, Podrygula, Schuler, Shomento, Sipma, Straight. nays: none. ADJOURNMENT There being no further business, Alderman Jantzer moved the meeting be adjourned. Motion seconded by Alderman Lehner and carried unanimously. The meeting was adjourned at 4:34 pm. ATTEST: APPROVED: _________________________________ Kelly Matalka, City Clerk Chuck Barney, Mayor