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CITY COUNCIL CLOSED SESSION MARCH 8, 1993 <br />Council Member Kuether explained that both Mr. and Mrs. Racutt <br />have always contended that they have completed certain <br />improvements to their property with the approval of the Building <br />Official. They have repeatedly asked that everything be put in <br />writing and the Building Official has refused to do so. <br />Mr. Hawkins contacted the court regarding the latest legal action <br />against the City by the Racutt's and found that it has not been <br />properly recorded with the court. He noted that if this is a <br />"bluff" action, he will file a request with the court for <br />reimbursement of all City expenses in the matter. <br />ARCON CONSTRUCTION <br />Mr. Hawkins gave a brief background on this matter. Trial is set <br />for June or July. This is a complex matter which is being <br />handled by Mr. John Burke. Because of its complexity, an <br />attorney with an engineering background is needed for <br />consultation. If Arcon Construction prevails, this lawsuit will <br />have ramifications statewide. Arcon is contending that because <br />there was an unusual amount of rainfall during that particular <br />construction season (an act of God), Arcon should be given <br />additional compensation. Arcon is contending that there was an <br />unforseen change of conditions and is entitled to the additional <br />compensation. If the jury awards in favor of the City, Arcon <br />will appeal. If the jury awards in favor of Arcon the City will <br />appeal. The League of Minnesota Cities may file an amicus <br />pleading if the City loses. If Arcon wins, all Minnesota <br />municipalities could be affected. <br />Another Arcon Construction legal claim involves the improvement <br />of Brandywood Estates. Mr. Burke and Mr. Schneider feel that SEH <br />has some responsibility in this matter and SEH has agreed to fund <br />$10,000.00 of the claim. A proposal for a settlement in the <br />amount of $30,000.00 was submitted to Arcon Construction. They <br />have not responded. <br />OAK BROOK PENINSULA <br />Mr. Hawkins explained that a closing was held on the property <br />this day, March 8th. All documents were signed and recorded. <br />DENNIS MEGAN LITIGATION <br />The City brought action against Mr. Wegan because he was <br />operating a construction business from his residence. The <br />property is zoned Rural. Mr. Wegan was ordered by the court to <br />remove all construction equipment from his property by a <br />particular date. Mr. Wegan did not comply with the court order <br />PAGE 2 <br />