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Home My WebLink AboutRES 2006-16 NOT ADOPTED DRAFT 1.1 Revisions r�er Cauncilor Lyma�oc�� CITY OF CORCORAN RESOLUTION 2006-16 Motion By: Seconded By: Not Aciopted City of Corcoran's Resolution and Response to False .�11c�aati�7ns of L�nla��rful I-s� c��' I��:�r�c�� i�n€� �� (��aia��e�� ;�' Monetary Damages from Paul R. Jacobs aod HRUA Whereas, Paul R. Jacobs is the General Manager of HRUA., Headwaters Rural Utilities Association, Inc.; and Whereas, as the general manager of HRUA and as"council member elect" Paul R. Jacobs submitted documents to the city of Corcoran dated 1/13/OS and 1/12/O5; and Whereas, these documents allege damages in excess of$122,000 to the HRUA, its affected members, the University of Minnesota departments and employees and their interest in a recovery of said damages; and Whereas, Paul R. Jacobs is an unpaid University of Minnesota employee; and Whereas, councilmember elect Jacobs references Minnesota Statute Chapter 609.456, subd. 1, which he interprets to require him to report"unlawful use of public funds" to law enforcement and the state auditor; and Whereas, council member elect Jacobs did submit reports to SheriffPatrick McGowan, Hennepin County Sheriff, the state auditors office, and the legislative auditors office; and Whereas, the legislative auditor has concluded and communicated to the city on September 15, 2005 that since no legislative funds were involved his of�ice did not have jurisdiction for an investigation; and, Whereas, the state auditor has concluded that no misuse of public funds occurred per their letter dated March 16, 2006; and Whereas, the city's auditor, Steve McDonald, of Abdo Eick&Meyers LLP, in a separate review also found no basis for a claim of misuse of public funds per his letter dated March 17, 2006; and Resolution 2006-15 Page 2 Whereas, to date,the city has not received any official communication from the Hennepin County Sheriff's or Hennepin County Attorney's o�ce; and Whereas, HRUA has attempted to recover damages in a lawsuit filed against the city, however summary judgment was granted in favor of the city and no damages were recovered by HRUA; and Whereas, Paul R. Jacobs is also associated with another private company, Florisota, Inc., which has in the past, as revealed in court documents, loaned money to HRUA; and Whereas, Paul R. Jacobs has submitted a written statement of conflict of interest to the city; and Whereas, Paul R. 7acobs has retained the right to vote on HRUA matters as stated in his conflict of interest document, and has participated in council discussions, voted on HRUA matters, and on at least two occasions voted to expend the public funds he claimed were an unlawful use; and Whereas, the factual descriptions and summary(p. 4, item 11) of the documents submitted in January of 2005, and hereto attached, are inconsistent with and contrary to the rulings in two court cases and Hennepin County Ordinance 19. NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF CORCORAN RESOLVES AND ADOPTS THE FOLLOWING: 1. Having reviewed the entire written record, the council resolves that a11 expenditures for legal services by the city were proper and legal. 2. In direct contradiction to the statements and allegations submitted by councilmember Jacobs, the courts have ruled in favor of the city in each case that has received a court ruling ta date, 3. Copies of this resolution in its entirety and various supporting documents shall be forwarded to the Hennepin County Sheriff, Hennepin County Attorney, the state auditor, former mayor Guenthner, the League of Minnesota Cities and the city's insurer. 4. The city officially request an opinion from the State Auditor as to the appropriateness of council member Jacobs participating in discussions and voting as a councilmember in li�ht of his affiliations with HRUA, Florisota, Inc., and his financial claims against the city. 5. The city council respectfully requests the Hennepin County Attorney and Sheriffto review the accompanying documents and this resolution and to communicate their findin�s or conclusions to the city at their earliest convenience. Resolution 2006-15 Page 3 6. The city council directs all employees to fully cooperate with any remaining investigations. ADOPTED by the City Council this 23`d day of March 2006. VOTING AYE VOTING NAY Cossette, Tom Cossette, Tom Grabowski, Chuck Grabowski, Chuck Jacobs, Paul Jacobs, Paul Lymangood, Chuck Lymangood, Chuck Thomas, Ron Thomas, Ron Tom Cossette, Mayor ATTEST: City Seal Bea Lindberg, City Clerk DRAFT 1.1 �evisions per Mayor Cassette CITY OF CORCORAN RESOLUTION 2006-16 Motion By: Seconded By: i`V ot �c�opted City of Corcora�'s Resolution and Final Response to Alle��tiocis f�•om Paui R. J��cc�bs ant� EI��.� 'z1 €�f I�nlawfuif:tlisz�se c�f I'ublic Funds b�� the Cit�� Attvrner�, Citv Administratar, Former :L�aye�• and '��ta��or Flect:�� ` . Whereas, Paul R. Jacobs is the General Manager of HRUA, Headwaters Rural Utilities Association, Inc.; and Whereas, as the general manager of HRUA and as "council member e�ect" Paul R. Jacobs submitted ��r�f3�:=Y��t��-�ai�=`��f�te�r��*�E�-1,�} nt��-a��c� �_e��c_�-ts dated 1/12/OS tc> Sherifi'_I?��tri_c_k '�t�C3t?e��t�, Her��te�in C=��tz��t�� S�iet�ti�the_State �udit�rs affice_anci the_ Leaislati�_e Auditors c�ffice alie�ing unla�vfui/tnisuse of�l'?,000 of�ublic fiznds by the Ci�_ �'lttornet_Cit�_.�dministratc�t•, F�riner_?�_lavor and'��a��r Elect ; and Whereas, these documents allege damages in excess of$122,000 to the HRUA, its affected members, the University of Minnesota departments and employees and their interest in a recovery of said damages; and Whereas, Paul R. Jacobs is an unpaid University of Minnesota employee; and Whereas, councilmember elect Jacobs references Minnesota Statute Chapter 609.456, subd. 1, which he interprets to require him to report "unlawful use of public funds" to law enforcement and the state auditor; and ��`'tt�t�cr�=-z:�iz�,.:� ..,o�,1.0.. o�o��,,L.r �l:a �,,�..,,:+ ,- n.-4� fnc�-cc,c;f�j_:,_�� - . � I lef��eptfi�-£`��t��=-�e;-i�;-��ta�e-�ct�t��#�ee;-af�t�-��e-�e,=��=�-��f4��-t+,�t�=�� Whereas, the legislative auditor has concluded and communicated to the city on September 15, 2005 that since no legislative funds were involved his office did not have jurisdiction for an investigation; and, Resolution 2006-15 Page 2 Whereas, the state auditor has concluded that no misuse of public funds occuned per their letter dated March 16, 2006; and Whereas, the city's auditor, Steve McDonald, of Abdo Eick&Meyers LLP, in a separate review also found no basis for a claim of misuse of public funds per his letter dated March 17, 2006; and Whereas, to date, the city has not received any of�cial communication from the Hennepin County Sheriff's or Hennepin County Attorney's office:-��i-_ �'i�i,,�=irT:-rurc�cc:; ,T •. t�.,:�,,:+ Fto.1 ., «,�+r1,., �.;t� n�6 � _ . t„�.�:�.:.�.- � _ ,.�3`.,.o.�t � ` .,+orl :., ��,�,.- �.4'�L,o �.;r�. �.,rl . �. .i.,.�.,.,`.o� . �.�:�-� v��lf'�ct�!'t�'�t�� T 1� .,toa . ;tl, ., .�tl.o.- . „t�, ,. L'1,. „+„ T.-.�. i . , , ��lr'��.-f��i$�3�S�-t�S'-fE`• "vtiuic°�rir-cvii��c �„tR 1,..,n1zZ,a-rrrcc�iTC�ic7��ccs-ri=iri� IiTt,o.-��n D,,,,3..-�_3�c1E19��S-S�i��-&�=�S�E'f3-S�ii��i8E1�$�-C-.@ti��-@��.,*°''°"++„+t,o ,.'� � J ��i-c�n:i-DzzcirDr��.-vi� 1.� o+� e��.�-;�1,++., ,�+a , Ti��?;�_1z'�t�� r+n*�rl � 1„ fl< t f;,�ro,- � ;l .i' ' ,�torl .,, II[?TT� E$#iirrcc-c�c-irrii.z , -{3i�}�C-!fi3&��-ti]-Ef,31�t1£-rr-ui�cic��-ii" . H��F�- ��`�'tzi-zr�,i°c-ici-ic�r 7cLYY�:�i�Yt�'F�t�... - . , _ .. ` �i�(} �,,,.,+ ,. „a T�RH2�3Hi-�--8ttt��*-�fE�-��1��3Et�-��- NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF CORCORAN RESOLVES AND ADOPTS THE FOLLOWING: 1. Having reviewed the entire written record,the council resolves that all expenditures for legal services by the city were proper and legal. 2._----��-�I�tc�:-�-t;-��tt�t�ii:�ic-�i-�-E��-��te+��3�� i�a`�}.�,,,^. ...,i,.,�fi�k�v��c-}��e�t}�ie� , ., �,.�,-„��,o ,.;+., ; ,^�-��e-#1}at �,.,�. ,- -�a „ �>�-�-lit�y *„� 3._---� ._ . _ _-s�3#}�:�r�li��f�eezicac-�Rs�l,.,'rar i vc ��t�;.{�s•�oa k�+k,� I7��r. � �l.,..t4-�> C4. �� u ! ��}L +�f.�r.�� 4�� c4n4o n.'a.�+��+- 1��.%q�-TQ-CI I7T�JTIC.Z�II1--I-1G�7T��'f�t`-CRITTCI� 7VTIi� Jp}.��e�- .v. r i�_'„ r�4�r.o 4�0 1 �Ct�t�-tYY�tt�T�J17T'iY'-f_a4.oc nr�� 41�o r.,i.""��"}}��'��.- i v . ii=L-t.cC� " Resolution 2006-15 Page 3 4. =�+��r��-i,f:��-��_E-��e�t.i�i-ni�-t��i-r�e��-�ft��#��e�€��l�i�tt�3� ��-�e-z��r€��; i:-1�`::i.i,..�;t Y. .�r.1�,o,- T��ni�R ...,�;�.j�f:.,` :., .��..,,��;...,� .,...�t . `.f;.... .. .�,..rttt�t�Gr't�tt7Gt-�tti-tt�ttt 'Y" '�--��R-E;-{ . ;,, ,,,� �,;� �;,,.,.,�;.,t �-t3-��s--a��-t��e-e-t#� � ��- ,. ,,:t .- a�*c;,tT��-��ti,a uo.,r�,,:,, r�,.,,,,+�, n�+,,...,o., n„a ct,o.-;�#��e -tt,,, ,� t� ., ,� +t,.� ,- a +„ „ n�a+�,o..- �,,,�:., fE'v�i=v�zi�c-icc£1B^��}��?�F?�+i��cviiirirei cr3-umr-crris-r�St}�tF��6R��F ,. c-�+�e��-t�-�#�-cit��--�-r-l�es�c�a��i��e�- 6. The city council directs all employees to fully cooperate with any remaining investigations. ADOPTED by the City Council thisl3id day of April 2006. VOTING AYE VOTING NAY Cossette, Tom Cossette, Tom Grabowski, Chuck Grabowski, Chuck Jacobs, Paul Jacobs, Paul Lymangood, Chuck Lymangood, Chuck Thomas, Ron Thomas, Ron Tom Cossette, Mayor ATTEST: City Seal Bea Lindberg, City Clerk DRAFT 1.1 CITY OF CORCORAN RESOLUTION 2006-16 Motion By: Seconded By: Ir1ot Adoptec� City of Corcoran's Resolution and Response to Alleged Monetary Damages from Paul R. Jacobs and HRUA Whereas, Paul R. Jacobs is the General Manager of HRUA, Headwaters Rural Utilities Association, Inc.; and Whereas, as the general manager of HRUA and as "council member elect" Paul R. Jacobs submitted documents to the city of Corcoran dated 1/13/OS and 1/12/O5; and Whereas, these documents allege damages in excess of$122,000 to the HRUA, its affected members, the University of Minnesota departments and employees and their interest in a recovery of said damages; and Whereas, Paul R. Jacobs is an unpaid University of Minnesota employee; and Whereas, councilmember elect Jacobs references Minnesota Statute Chapter 609.456, subd. 1, which he interprets to require him to report "unlawful use of public funds" to law enforcement and the state auditor; and Whereas, council member elect Jacobs did submit reports to Sheriff Patrick McGowan, Hennepin County Sheriff, the state auditors office, and the legislative auditors office; and Whereas, the legislative auditor has concluded and communicated to the city on September 15, 2005 that since no legislative funds were involved his of�ce did not have jurisdiction for an investigation; and, Whereas, the state auditor has concluded that no misuse of public funds occurred per their letter dated March 16, 2006; and Whereas, the city's auditor, Steve McDonald, of Abdo Eick&Meyers LLP, in a separate review also found no basis for a claim of misuse of public funds per his letter dated March 17, 2006; and Resolution 2006-15 Page 2 Whereas, to date,the city has not received any official communication from the Hennepin County Sheriff's or Hennepin County Attorney's office; and Whereas, HRUA has attempted to recover damages in a lawsuit filed against the city, however summary judgment was granted in favor of the city and no damages were recovered by HRUA; and Whereas, Paul R. Jacobs is also associated with another private company, Florisota, Inc., which has in the past, as revealed in court documents, loaned money to HRUA; and Whereas, Paul R. Jacobs has submitted a written statement of conflict of interest to the city; and Whereas, Paul R. Jacobs has retained the right to vote on HRUA matters as stated in his conflict of interest document, and has participated in council discussions, voted on HRUA matters, and on at least two occasions voted to expend the public funds he claimed were an unlawful use; and Whereas, the factual descriptions and summary(p. 4, item 11} of the documents submitted in January of 2005, and hereto attached, are inconsistent with and contrary to the rulings in two court cases and Hennepin County Ordinance 19. NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF CORCORAN RESOLVES AND ADOPTS THE FOLLOWING: 1. Having reviewed the entire written record,the council resolves that alt expenditures for legal services by the city were proper and legal. 2. In direct contradiction to the statements and allegations submitted by councilmember Jacobs, the courts have ruled in favor of the city in each case that has received a court ruling to date, 3. Copies of this resolution in its entirety and various supporting documents shall be forwarded to the Hennepin County Sheriff, Hennepin County Attorney, the state auditor, former mayor Guenthner, the League of Minnesota Cities and the city's insurer. 4. The city officially request an opinion from the State Auditor as to the appropriateness of council member Jacobs participating in discussions and voting as a councilmember in light of his affiliations with HRUA, Florisota, Inc., and his financial claims against the city. 5. The city council respectfully requests the Hennepin County Attorney and Sheriffto review the accompanying documents and this resolution and to communicate their findings or conclusions to the city at their earliest convenience. , , Resolution 2006-15 Page 3 6. The city council directs all employees to fully cooperate with any remaining investigations. ADOPTED by the City Council this 23`d day of March 2006. VOTING AYE VOTING NAY Cossette, Tom Cossette, Tom Grabowski, Chuck Grabowski, Chuck Jacobs, Paul Jacobs, Paul Lymangood, Chuck Lymangood, Chuck Thomas, Ron Thomas, Ron Tom Cossette, Mayor ATTEST: City Seal Bea Lindberg, City Clerk