HomeMy WebLinkAboutResolution 2005-69 - Response to Allegations That Public Officials Unlawfully Expended Public FundsRESOLUTION NO. 2005 -69
RESPONSE BY THE CITY OF CORCORAN TO
ALLEGATIONS THAT PUBLIC OFFICIALS UNLAWFULLY
EXPENDED PUBLIC FUNDS
WHEREAS, by correspondence dated January 12th, 2005, Corcoran Councilmember
Paul Jacobs sent a letter to Hennepin County Sheriff, Patrick McGowan, alleging that city staff
had improperly expended funds in violation of Minn. Stat. §609.456; that this statute makes the
unlawful expenditure of public funds a crime; and
WHEREAS, Councilmember Jacobs claims that the City unlawfully spent League of
Minnesota Cities Trust Funds in defense of a lawsuit brought by HRUA in August of 2003
against the City of Corcoran and other defendants; and
WHEREAS, the suit brought by HRUA was turned over to the League of Minnesota
Cities Trust Fund, the city insurer, for defense; that over $100,000.00 of the total amount
complained of in Jacob's January 12th, 2005 correspondence was spent in defense of this suit by
the League Trust; that city staff had no influence or control over expenditures by its insurer in
defense of the HRUA suit; and
WHEREAS, the Jacobs letter of January 12th, 2005 also references unlawful
expenditures by the City in furtherance of its Enforcement Action based on the Order of April
3rd, 2003, brought by the City seeking code compliance relating to failing septic systems; and
WHERAS, city staff never expended funds without direct authority from the Corcoran
City Council; and
WHEREAS, Mr. Jacobs is his January 12th, 2005 correspondence contends that
differing versions of Corcoran Code, Chapter 50.12 provided by the City during the above
referenced litigation caused the unlawful expenditures complained of; that the 27 page complaint
brought by HRUA in August of 2003 does not list as one of its counts any reference to Corcoran
Code Chapter 50.12; and
WHEREAS, both the suit brought by HRUA against the City and the Enforcement
Action brought by the City were decided in favor of the City by Summary Judgment; and
WHEREAS, Judge Janet Poston and Judge Cara Lee Neville, in granting Summary
Judgment, addressed the issue of Corcoran Code Chapter 50.12; Judge Poston stated in her
Order:
Even if the copy of Chapter 50.12 of the City's wastewater laws
provided by Defendants was inaccurate, the substance of 50.12
did not go to the ultimate issue of the case. The substance of 50.12
was collateral at best.
Judge Neville, in her Order stated:
The 10 year correction provision in §50 is irrelevant because
when work on septic systems is performed, a permit is required
which has not been approved in this case.
WHEREAS, the official city minutes reveal that Councilmember Jacobs voted in favor
of paying claims for legal services directly related to the above referenced Enforcement Action;
that these votes occurred on January 27th, 2005 and February 24th, 2005; and
WHEREAS, it is not possible to reconcile the claims made by Councilmember Jacobs in
the correspondence of January 12th, 2005 to Sheriff McGowan with his votes in favor of paying
the very dollar amounts he claims to be the subject of criminal behavior.
WHEREAS, Mr. Jacobs is the general manager of HRUA; and
WHEREAS, in his January 12th, 2005 correspondence to Sheriff McGowan,
Councilmember Jacobs failed to advise the Sheriff of his direct financial involvement with
HRUA; and
WHEREAS, in the same correspondence to Sheriff McGowan, Councilmember Jacobs
failed to advise the Sheriff of his claim on behalf of HRUA against the City in excess of
$122,000.00; that Councilmember Jacobs also failed to advise the Sheriff of his own conflict of
interest arising from his financial involvement with HRUA and its claims against the City.
NOW, THEREFORE, the Corcoran City Council makes the following
RESOLUTION:
1. That the assertion by Councilmember Jacobs of criminal misconduct on the part
of the City or its staff is untrue and irresponsible.
2. That this Resolution, together with all relevant attachments, shall be sent to the
Hennepin County Sheriff, the Hennepin County Attorney, the State Auditor, the
State Legislative Auditor and the League of Minnesota Cities Trust Fund.
Moved by Councilmember Lymangood, seconded by Councilmember Thomas
The following voted in favor of said Resolution: Cossette, Lymangood, and Thomas
The following voted against the same: Grabowski and Jacobs
The following abstained:
Whereupon said Resolution was declared duly passed and adopted, and was signed by the
Mayor and attested by the Clerk dated this 8th day of September, 2005.
ATTEST:
City Clerk
Mayor
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