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Home My WebLink About07-07-05 Clerical Committee Meeting Minutes C L E R I C A L C O M M I T T E E EXECUTIVE SESSION JUNE 7, 2005 TH COUNCIL CHAMBERS 50 NORTH 4 Mayor Heinze called the meeting to order at 9:00 p.m. Roll call. Aldermen Jim Hartford, Joe Berardi, Larry Sarff, Craig West, Les Carl, Kevin Meade, Rick Reed, Eric Schenck. Absent – None. Mayor Rodney W. Heinze, City Clerk Nancy Whites, City Treasurer Kathleen A. Luker, City Attorney Jim Elson Sr. PURPOSE OF THE EXECUTIVE SESSION – PENDING LITIGATION (CITY OF CANTON vs. DON INMON, CITY OF CANTON vs. RICK LILLIE; REVIEW EEOC MATTER.) City of Canton vs. Rick Lillie. Jim Elson city attorney stated the City had two cases that have not had anything done on them for the last 4 years. The City of Canton vs. Rick Lillie for the Drow Hard Ware Building cost the city $98,000 to tear down. Jim said he had judgment against Mr. Lillie for the $98,000 and Jim said he started to foreclose on this 2 years ago and was abruptly halted in his tracks. Jim said he is asking for the City Council to let him foreclose. Alderman Sarff asked Jim, what does that entail? Jim said the foreclosure involves the cost of less than $1,000. The City ultimately would receive the title to the real estate that is involved and also the personal judgment against Rick Lillie would carry over Alderman Carl wanted to know if could get a discovery of personal assets? City Attorney Jim Elson said he had no problem doing that, and would do this first. Mayor Heinze said he talked with Rick Lillie a few days ago and he is willing to work this out. City Attorney Jim Elson mentioned that would be good. City of Canton vs. Don Inmon. City Attorney Jim Elson mentioned that this case has had nothing done on it for 4 years. Jim said he received an order from Judge Stephen Bordner to appear June 28 as to explain why this case should not be dismissed from prosecution. Jim said all he has to do is see the judge and tell him we want to proceed forward. This is the case where the City went after Mr. Inmon for the mess he created in the Industrial Park. We were seeking an injunction against him for operating a salvage yard on part of the land. Part of it he had a permit for and part he did not. Jim wants to pick up where the City left off 4 years ago. Jim then reported that this info I’m about to give is attorney/client confidence that Mr. Inmon has filed a claim against the insurance for a large amount of dollars. The insurance company called Jim and is going to ask Don Inmon to show the bill of sale for all your trailers. Mr. Inmon has given us a very difficult time. He was trying to move his case out of this court for Federal District Court in Peoria. He had the same attorney that Pamela Smith had that represented her in the 1 Clerical Committee Executive Session June 7, 2005 EEOC matter. Judge Taylor ruled this is not for Federal Court this is staying in Fulton County. Alderman Berardi does not want the City to show him any leniency as he knew Don Inmon was encroaching on the city’s property. So Alderman Berardi took a survey and Don Inmon was on 50 feet of City property with his trailers. Alderman Berardi mentioned that he also gave a copy of the pictures he took of the area to their insurance company. City Attorney Jim Elson said you always want to give someone an opportunity to resolve a case. Alderman Schenck wanted to know what the charges are against Don Inmon by the City. Jim Elson explained there are restrictive conveyance, creating nuisance, operating a salvage yard, and etc. Alderman Schenck said it sounds like now we will have encroachment on city property that needs to be added. Jim also said he needs to add the $32,000 for the trailers the city had removed from the IH property by N.E. Finch. Mayor Heinze mentioned that he set up an appointment with Don Inmon and Sally Nussubaum. Rod said he mentioned to them that he is a cordial person but we need to be business like. There is a perception here that your place out there looks like a junk yard. Sally agreed! Mayor Heinze have any plans to clean this up? Sally said we’ll actually do this! Mayor Heinze said okay, when, as nothing we have done has worked for 4 years? Sally said we are going to get some insurance money in the next 8 to 16 weeks. Mayor Heinze said do you think you’re getting this money, or are you pretty certain? Sally, no we will get it! Mayor Heinze asked, you remanufactured homes, do you have any finished project? Sally said yes. Mayor Heinze wanted to know what happens after receiving the insurance money. Sally, we’re going to put up a corrugated tin fence. Mayor Heinz said he has seen this situation before and thought the junk behind the fence was not as bad as the corrugated tin fence that was leaning over. Sally said the fence would be nice. Mayor Heinze – how long does this take? Sally – another 8 weeks. Mayor Heinze – how about I add 10 weeks to that, and that’s a half year to make presentable. Can you do it? Sally – yes! Mayor Heinze – I asked if she could make a power point presentation and she said she could. Mayor Heinze – can you come to the first council meeting in July and make a presentation? Then come back each month for 6 months and then we’ll see what you’ve proposed comes to pass. Sally – fine with her! Mayor Heinze – there is a 50/50 chance in 6 months it won’t look any different in 6 months then it does right now. City Attorney Jim Elson said we want them to show progress. Alderman Berardi said this is not right for this kind of fence they want to have put up. City Attorney Jim Elson said we are trying to decide what is his arrangement concerning these trailers, so I asked the insurance company to find that out. Jim said I believe he’s salvaging them, and he is being paid x amount of dollars to take them off the hands of somebody else. 2 Clerical Committee Executive Session June 7, 2005 Mayor Heinze asked Alderman Berardi as to what action do we take? Alderman Berardi wants to take away every resource that Don Inmon has. City Treasurer Kathy Luker asked, what is the possibility that the insurance money is coming to her? Alderman Berardi thought that was a very good question. City Atorney Jim Elson said he would add both names in the judgment. Mayor Heinze asked Alderman Berardi if it was worth $100,000? Alderman Berardi said to use TIF funds. City Treasurer Kathy Luker said this is not the right TIF. Jim Elson said, time wise it takes 30 days at each step for everyone to respond. Jim also said that Don Inmon will have to abide by the restrictions. Alderman Sarff said our city staff we’ll have to watch them to see how the trailers are brought in there. Alderman Carl wanted to know if TIF funds could used to pay Jim for his services? Worth investigating. Review of EEOC matters. Jim Elson said he has a technical conflict of interest here as one of the attorneys involved in this case is insured with ISBA Mutual Insurance Company and Jim said he is a charter director and current vice chairman of the board of ISBA Mutual Insurance Company. So if there is malpractice involved here, I am recommending to authorize me to discuss retention of an attorney who is skilled in EEOC matters and legal malpractice. There is an attorney in Peoria he is with the law firm of Howard & Howard who has this expertise. Jim said his name is Lenny Sachs, and he wants to talk with him to see what we can do. There is about $150,000 involved in this. We have paid out $8,000 in attorney fees and for remediation services. Additional we have some $21,000 for 4 years, and I really feel there is the possibility of malpractice here. Alderman Berardi wants to know if we are working on a conflict of interest with Jerry, or just looking at the case? Jim said just the way the Resolution was passed make it voidable (invalid, and of no force). First thing to do is in order to void it we would need a declaratory judgment action. The second thing is subrogation, the city’s position is it takes over court payments that are made, and goes after the person responsible for it, and that involves definitely action against Jerry Bohler himself. Jim further stated he needs to review that to see if it is suborgal action or not/or whether language utilized is released under the rule “release one, release all.” Alderman Carl said he asked the specific question from the former city attorney Ron Weber “are we insured”? And he said we were not! Jim Elson said the city is insured, it was formerly with Keisewetter Insurance and now Illinois Municipal League Risk Retention group. However, because of the City settling on our own, we are out the door. Jim Elson said at this point we are just exploring our options and need consensus to go forward on (1) Lillie, (2) Inmon, (3) talk with Lenny Sacks, (4) authorize to proceed all under the city attorneys retainer agreement. All Aldermen gave consensus for Jim Elson to proceed in each of the 4 issues as he outlined. 3 Clerical Committee Executive Session June 7, 2005 Motion and second by Aldermen Sarff/Hartford, to go into open session. Voice vote, motion carried. The Executive Session for Pending Litigation (City of Canton vs. Don Inmon, City of Canton vs. Rick Lillie, Review of EEOC Matter adjourned at 9:28 p.m. ______________________________ Nancy Whites, City Clerk 4