Agenda Packets - 2004/07/26 - Laserfiche WebLink

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Mounds View City Council July 12, 2004 Regular Meeting Page 12 Mayor Linke left the Council meeting. Mayor Linke excused himself due to the conflict of 1 interest he had with Innovative Images. 2 3 1. Report on Innovative Images Contact Issue. 4 5 City Clerk/Administrator/Administrator Ulrich stated the City Attorney had had a family 6 emergency so he couldn’t be available to present this issue. He stated Mr. Linke is acting as a 7 vice president of the corporation, and he is making a request to have some compensation for a 8 contract that Innovative Images previously had with the City of Mounds View. 9 10 City Clerk/Administrator Ulrich stated on April 12th the City Council had referred the matter, 11 based on the City Attorney’s advice, to the Minnesota Attorney General, to answer the question 12 of whether a mayor could bring such an action. On June 23rd the City received a response from 13 the Attorney General stating that the mayor could bring such an action because the original 14 contract was signed prior to Mr. Linke taking office and the City can work within the old 15 agreement to settle this difference. 16 17 City Clerk/Administrator Ulrich stated Mr. Linke is seeking compensation for two issues. He 18 stated it would take a significant amount of time to litigate. He stated litigation costs could easily 19 exceed what the claimant would accept as a settlement, but that he did not know what that 20 amount was at this point. He stated the City’s insurance generally does not cover contract 21 claims. He stated an alternative could be binding or nonbinding arbitration to settle the matter. 22 23 Council Member Stigney stated he felt they shouldn’t do anything at this point because the City 24 had made an offer in settlement of the contract, and he didn’t know whether that had been 25 rejected by the Linkes or not. 26 27 City Clerk/Administrator Ulrich stated there was an offer pending on the table. 28 29 Council Member Gunn asked what they were asking for. 30 31 Council Member Marty stated they wanted to be paid a percentage of their future bookings. 32 33 There was a discussion over the settlement with Elegant Times. 34 35 Council Member Marty discussed his concern over the large legal fees they had incurred with 36 Kennedy & Graven for legal contracts. He stated he would like to see this matter go to 37 arbitration. 38 39 City Clerk/Administrator Ulrich stated that people have said that arbitration would be a good way 40 to go in this situation. 41 42 Council Member Gunn cited that the Minnesota Attorney General had stated that they knew of 43 no principle of law that would summarily strip a person of otherwise legitimate preexisting legal 44