From Minnpost:
[The Minnesota Supreme Court ruling] affirms the previous ruling by Ramsey Chief Judge Kathleen Gearin. The summary sentence says:"The executive branch exceeded its authority under Minn. Stat. § 16A.152, subd. 4 (2008), by using that statute to balance the budget through reducing allotments before the budget-making process was completed."
From the Maplewood City Council packet for March 22, 2010, Agenda Item M-1:
CITY ATTORNEY REPORT TO CITY COUNCIL MARCH 22, 2010
The City of Maplewood recently became aware that Diana Longrie, in her private practice as an attorney and during her tenure as mayor of the City, represented Patricia Gearin and Wipers Recycling LLC at the same time that Ms. Gearin, Wipers Recycling LLC and Gearin LLC were engaged in litigation against the City and various City officials. Ms. Longrie participated in meetings of the City Council that were closed for attorney-client privileged discussions of litigation strategy relating to the lawsuits brought by Ms. Gearin and her companies. Ms. Longrie did not recuse herself from those discussions, nor did she disclose to the City that she represented Ms. Gearin and Wipers.
More specifically, the City is aware of the following facts in the public record:
• Diana Longrie, a licensed attorney in the state of Minnesota, was elected to office in 2005 and sworn in as Mayor in January 2006. She became a paid public official of the City of Maplewood at that time. Her term of office ended on January 4, 2010.
• A company called Wipers Recycling, L.L.C., moved into the City of Maplewood in the summer of 2007. The company is owned and operated by Patricia Gearin.
• Ms. Longrie represented Ms. Gearin and Wipers Recycling LLC in a civil matter, Recovery Systems Company, Inc. v. Patricia Gearin, Wipers Recycling LLC., 27-CV-06- 14894, Hennepin County, Fourth Judicial District. Court records indicate that Ms. Longrie represented Ms. Gearin and Wipers Recycling LLC from May 2007 until the conclusion of the litigation in November 2007.
• In August 2008, Ms. Gearin, Wipers Recycling LLC, and Gearin LLC brought a federal civil lawsuit against the City and City officials disputing the City’s building and fire code decisions with respect to her building, among other issues. Patricia M. Gearin, et al. v. City of Maplewood, Minnesota, et al., 08-5019 (PJS/AJB). That case is still pending.
• In February 2009, Ms. Gearin, Wipers Recycling LLC, and Gearin LLC brought a state civil lawsuit against the City and City officials disputing the City’s building and fire code decisions with respect to her building, among other issues. Gearin, LLC, et al. v. Vecoplan, LLC, et al., 62-CV-09-1924, Ramsey County, Second Judicial District. That case is still pending.
• In September 2009, Ms. Gearin, Wipers Recycling LLC, and Gearin LLC appealed the decision by the City and its building official that Ms. Gearin changed the use of her building and needed a new certificate of occupancy. They appealed this decision to the state board of appeals of the Department of Labor & Industry. In September 2009, the board upheld the decisions of the City and its building official. Ms. Gearin, Wipers Recycling LLC, and Gearin LLC appealed that decision. That case is still pending before the Office of Administrative Hearings.
• After Ms. Gearin, Wipers Recycling LLC, and Gearin LLC brought a federal lawsuit in August 2008, the City tendered defense of the claims to its insurance provider, the League of Minnesota Cities Insurance Trust (LMCIT), which accepted the claim. The LMCIT contracted with the firm Greene Espel P.L.L.P. to provide the actual legal defense services and Robin Wolpert was assigned as the principal attorney to the file.
• As part of the process of defending the City, Ms. Wolpert met periodically with the City Council in closed sessions to hold attorney-client privileged communications with the Council regarding litigation strategy. During these meetings, the City Council sought legal advice, and Ms. Wolpert provided legal advice, regarding the pending lawsuits. The closed sessions regarding the pending lawsuits that Ms. Longrie participated in included sessions on September 8, 2008; February 23, 2009; July 6, 2009; and September 14, 2009.
• After Ms. Longrie’s term ended, the City learned that she represented Ms. Gearin’s company Wipers Recycling LLC, in another civil lawsuit from April 2009 to the present, Bro-Tex, Inc. v. Wipers Recycling, LLC., 62-CV-09-6032, Ramsey County, Second Judicial District. Court documents indicate that Ms. Longrie appealed the conciliation court decision on behalf of Wipers in May 2009 and remains counsel of record.
• Ms. Longrie represented Ms. Gearin and Wipers Recycling LLC while she was an elected and paid public official and while her client was also suing the City in multiple forums (state, federal, and administrative). Specifically, from the spring of 2009 until the end of her term, Ms. Longrie simultaneously was an attorney for Wipers Recycling LLC and Ms. Gearin and a participant as mayor in closed sessions regarding the suits of Wipers Recycling LLC and Ms. Gearin against the City. Ms. Longrie did not disclose her representation of Ms. Gearin and Wipers Recycling LLC to the City. The City never consented to Ms. Longrie’s actions. Ms. Longrie attended attorney client privileged meetings to discuss litigation strategy related to the pending lawsuits against the City.
Members of the City Council, based on the information contained in this report, I will be reporting these facts to the appropriate state agencies for further investigation.
The Maplewood Planning Commission met on April 15 to consider an application from CoPar Companies for its 165 unit Carver Crossing development. This application, submitted on March 31, is an outgrowth of the mediation step of CoPar's lawsuit against the city.
On September 28, 2006 the Maplewood City Council denied the CUP application for CoPar's 191 unit development plan. Written findings in support of the denial were not adopted in accord with Minnesota land use law, leading to the lawsuit. CoPar alleges the City's denial was arbitrary and capricious, and that the denial constitutes a 'taking'.
The League of Minnesota Cities Insurance Trust appointed John Baker to represent Maplewood in the case. Mr. Baker made a lengthy presentation to the Commission last night. This is sufficiently unusual that Maplewood Voices extracted the audio so that readers could review his presentation.
His key points were
[update at end]
The insurance agency presentation to the city council at the April 7, 2008 workshop was characterized by VeNita Schnebele, the Area President for Arthur J Gallagher, as a "come to Jesus" moment about Maplewood's insurance issues. Her discussion was supported by these letters and reports obtained via a Data Practices request.
Just prior to the 2007 primary election campaign, the League of Minnesota Cites Insurance Trust (LMCIT) was already communicating to the city that the both the loss experience and the lack of communication and cooperation between the League and the city would have premium and coverage implications. The letters, which Mr. Ahl reports were not in the City Managers files when he assumed his current duties, illustrate the communication issues. Here is an excerpt from a June 8, 2007 letter to Mr. Bethel.
[Please click on the image for a more readable view]
[Please click on the image for a more readable view]Mr. Hjelle (Pioneer Press interview in recent financial mess article):
"I took a huge leap of faith. I thought, you know, what the hell harm can he [Copeland] do?" [emphasis added]
... it was LMCIT that paid the settlement, the City of Maplewood did not pay one dime of taxpayer money to settle this litigation.
... and the City was reimbursed by the Insurance Carrier for any payments the City made....
D. New Business
a. Presentation by League of Minnesota Cities Insurance Trust (LMCIT) regarding concerns with City of Maplewood Liability Insurance
Coverage
E. Old Business
[emphasis added]
This preliminary indications are that LMCIT will be considering the levels and extent of ourcoverage. Attached is a letter from June 22, 2007 that identifies the exposure concerns and rate adjustment of 13.5% to $189,952. As we understand, the LMCIT Board will be considering a number of options for continuation of Maplewood’s coverage. Preliminary information indicates that an additional surcharge of 15% may be applied. This is an increase of approximately $28,500 which will be applied for the majority of 2008. Additional indications are that LMCIT may be considering increase the deductible liability limits for employment litigation from the current level of $50,000 per occurrence to $200,000 per occurrence. While this is an expenditure that is not immediately a cost item, we have typically budgeted for a portion or percentage of the liability exposure. [emphasis added]
Mr. Nephew comments on Mr. Davy's latest article, "Goal setting session pushed back".
...
Nephew said he still hopes the rescheduled goal-setting meeting will be productive. "There is tremendous opportunity for this council to find common ground, especially where the environment is concerned," he said.
"I hope we can work through these issues constructively when we finally do have this meeting - I'm just a little more pessimistic after what's happened."
Pioneer Press Thu, 27 Mar 2008
Matchmaking, a comeback, an easy answer and more ...
[update 3/28 11:30AM]MAPLEWOOD, MEET AUDITOR
Minnesota's state auditor is charged with overseeing more than $20 billion spent each year by local governments. The city of Maplewood is one such local government, and it spends in the neighborhood of $39 million per year for such things as streets and parks and fire protection and police.
We would like the current state auditor, Rebecca Otto, and the Maplewood city government to get to know each other.
A story in the Pioneer Press this week by reporters Tad Vezner and Elizabeth Mohr raised important questions about the management of public funds by Maplewood city officials. The piece focused on the now-departed city manager, Greg Copeland, and reported that budgetary record-keeping is a mess. This may be a question of bad paperwork. It may be worse. We need to know.
In addition to the budget issues, Copeland presided over a large turnover followed by a series of lawsuits. The departure of the finance director and two other veteran employees meant day-to-day finance work "did not get completed in a timely manner,'' the acting city manager, Chuck Ahl, told reporters.
Auditor Otto's numbers-crunchers can figure out if the taxpayers' money is being handled honestly and appropriately, and if the city is being administered in an open and honest manner.
Whatever she finds will anger someone. This is a politically polarized city that once asked a respected ethics expert to come in and help them get along, and then trashed him when he suggested they could be a little nicer to each other.
I will also advise the city that I will be requesting a forensic audit of the city by an outside body. Any ommissions from this request will be evidenced. I also assume that the City has saved ALL documents in its' possession and will continue to do so. [emphasis added]
The City has leased land for over two decades which it has used as a park. Area residents bought homes considering the park to be there for their children to access without crossing nearby busy streets.
The lease has expired.
The landowner plans to redevelop a portion of the land for senior housing, a portion of the housing to be 'affordable', and has requested Tax Increment Financing (TIF) for the project. It has offered to sell the undeveloped portion to the City for a price that would consume most of the available Park Fund, which lacks a fund replenishment source since it depends on fees from the sort of new development that is rapidly drying up. Using the Park Fund for this purchase would affect maintenance and improvements throughout the Maplewood park system already planned via the Capitial Improvement Projects (CIP) process.
An alternative funding mechanism is a bonding referendum. This approach would likely not happen until November, would add to the City's debt which is characterized in the agenda for the upcoming council goal setting session as 'staggering', and would ask all residents to accept increased property taxes for a purchase some would view as only benefiting the residents near the park. The idea of a bonding referendum has also surfaced in the south leg context.
After two recent Parks and Recreation Commission meetings at which this proposal has received significant attention, the council will take it up in the workshop format next Monday (packet pdf). Acting City Manager Ahl's staff report suggests TIF may not be the best idea.
Alex Davy's 3/19/08 Lillie Newspapers article 'Golden lease' arrangement ends: Maplewood hopes to buy church-owned parkland provides a good summary:
Since 1982, Gethsemane Lutheran Church in Maplewood has leased 9.6 acres of park land adjacent to its property to the city for $1 a year. The 25-year lease agreement expired in 2006, and now Gethsemane plans to build a senior housing complex on the western six acres of the park. The parks and recreation commission has been offered the chance to buy the remaining 3.6 acres.
"I'm going to be plain, it was a difficult decision," said the Rev. Richard White, church pastor, at the March 13 commission meeting. "But we felt it was the best decision."
Plans have been in the works for years, White says. "It's an act of synergy. We see this as an opportunity to become an intentional multi-generational church community, together with the church, school and now senior housing."
Gethsemane has partnered with Presbyterian Homes of Minnesota to construct 111 units of independent-living senior housing with heated underground parking and a small, above-ground parking lot.
A heavy burden
The park purchase would likely stretch parks and recreation funds to the limit. According to initial estimates, says Environmental Manager DuWayne Konewko, buying the park will cost the city approximately $800,000. About $200,000 could come from profits from the park access charge fund, while the remainder could come from the roughly $1.7 million fund itself. But much of that money is already committed, which means using the park-access charge fund to buy the park would nearly deplete it.
Money in the fund comes from developers and builders in Maplewood, who are charged a parks fee in order to provide green space when they introduce new construction. But with Maplewood 98 percent developed, Konewko says, that revenue stream is drying up.
...
In the March 12,2008 Lillie Newspapers Alex Davy reviews the Sherrie Le decision in Judge in Sherrie Le case rules firing illegal
District Judge Kathleen Gearin ruled Feb. 29 that termination of former Maplewood human resources director Sherrie Le was illegal, awarding Le $184,714 in damages.
Former City Manager Greg Copeland fired Le, a city employee since 1994, in August 2006, claiming that she was unprofessional.
But Gearin didn't see it that way, finding that the city violated state fair labor practice laws and the Minnesota Whistleblower's Act.
"I see it as a vindication of my actions," Le says.
Gearin's 31-page judgment reveals a tense and often acrimonious administrative environment.
"The fact that I reported those violations led to my firing, and I'm convinced of that," Le stated. "Anybody that tried to maintain integrity in the city and stood up for what was right, they tried to get rid of."
A strange footnote
With a nearly two-year case now wrapped up, Le is satisfied a decision has been made and Copeland and Mayor Longrie, also named in the lawsuit, were absolved of personal liability for the firing.
But Council Member Hjelle has some concerns with the whole trial, which he says are linked to the arrest of Judge Gearin's sister by Maplewood police about two weeks before her decision in the case.
On Feb. 15, Patty Gearin was issued a citation for obstructing the legal process in connection with a fire that broke out at her Maplewood business, Wipers Recycling, in early January.
An industrial grinder used to turn salvaged material such as old shoes and tires into absorbent cleaning cloth and potting soil caught fire, and the Maplewood Fire Department was called to put out the blaze.
According to city officials, Patty Gearin did not have a certificate of occupancy and was operating her business illegally.
The link of Patty Gearin's arrest occurring in Maplewood was enough for Council Member Hjelle to say that Judge Gearin should have recused herself from the case. "This just screams mistrial to me," he says. "If the judge is to be assumed to be beyond impartial, the mere fact that her sister got arrested should disqualify her. You have to have faith that she's honest, but God does it stink like hell." [emphasis added]
Judge Gearin maintained that her sister's arrest did not influence her ruling, according to court documents.
"It doesn't concern me that her sister got arrested," Le says. "(Judge Gearin) called both my attorney and the city's about a week before it happened, trying to encourage them to settle. It seems pretty clear that she had already reached a decision."
Councilperson Nephew has made a pdf of the Sherrie Le decision available on his website.
Tad Vezner of the Pioneer Press follows up on his article from last weekend with Maplewood / Council member wrong on vote facts (3/6/08)
Maplewood City Council Member Erik Hjelle admitted to having the facts wrong when he accused a former city employee last week of lying on the stand during the employee's lawsuit against the city. But he insisted he was innocent of the employee's allegations of conflict of interest.
...
Upon being informed of the ruling on Friday, Hjelle accused Le of lying on the stand about his vote.
...
On Wednesday, Hjelle said he confused the vote described in the lawsuit, which was to increase pension funding, with votes to increase the pensions themselves.
Reached Friday evening, Hjelle said that the judge was misinformed and that he had recused himself from the votes.
"This judge was simply lied to ... I'm sorry that a judge was stupid enough to believe (Le). But I guarantee you no one will hold (Le) accountable (for alleged perjury), because that's how things work around here," he said. [emphasis added]
With the end of the south leg moratorium and the CoPar lawsuit looming, Mr. Hjelle has sent an email to a group concerned about development in south Maplewood.
Mr. Rossbach has responded to the email on his website.
Mr. Nephew sent a responding email to the group, which he has now published on his website.
Pioneer Press Fri, 29 Feb 2008 23:11:11 -0700
Maplewood / Judge says city firing illegal
A Ramsey County judge ruled Friday that Maplewood city officials illegally fired one of their employees because she attempted to form a union and made whistleblowing allegations protected under state law. Former city human resources director Sheryl Le was awarded $184,714 by District Judge Kathleen Gearin. The award represents two years of back and future pay and benefits. She also was awarded attorney's fees, yet to be determined.According to the decision, Ms. Le was also reinstated from the date of firing until the date of trial for purposes of seniority and pension benefits.
Le complained about a possible conflict of interest regarding votes by Hjelle and Cave in 2006 regarding increasing funding for the pension plan for firefighters. Hjelle was a paid-per-call firefighter, as was Cave's husband. Both men resigned as firefighters for the duration of the vote, then were reinstated the next day, according to the judge.
Reached Friday evening, Hjelle said that the judge was misinformed and that he had recused himself from the votes.
"This judge was simply lied to ... I'm sorry that a judge was stupid enough to believe (Le). But I guarantee you no one will hold (Le) accountable (for alleged perjury), because that's how things work around here," he said. [emphasis added]
Since this reference is from draft minutes, it is possible the vote record was changed on the approved minutes. We will update as needed when the data practices request is fulfilled.
2. By-Law Change Fire Fighters Relief Association
a. Fire Department Representative Ed Fitzgerald presented the report.
Councilmember Rossbach moved to adopt the proposed by-law change to Article III, Section 3.1 and delete reference to Oakdale firefighters and adopt by-law changes to Article IX, Section 9.2a to $1,100.00 for 2006 per active fire fighter and $1,200.00 for 2007 per active fire fighter.
Seconded by Mayor Longrie Ayes-All [emphasis added]
Lillie Newspapers: 2/27/08: Alex Davy: Public forum or wind tunnel?
...
Pausing a moment to collect himself, Rossbach continued. "We do have the right to put into place rules for their petitioning process," he said. "A simple one is requiring their legal address."
In the face of yet another session that threatened to push past midnight, the discussion was tabled until the next City Council meeting.
After the item appeared on the agenda, the American Civil Liberties Union sent Rossbach a letter detailing appropriate restrictions on public speech, warning that his proposal did not meet free speech standards.
Rossbach has since reconsidered the policy. While his intentions were good, he says, his approach was off. He now proposes moving visitor presentations before the regular council meetings, so that the council can move forward with agenda items more quickly.
Demonstrators who want to march on this year's Republican National Convention in St. Paul will have to get in line รข€” literally.
The city police department offered a sketch Wednesday of how it anticipates handling the tens of thousands of people expected to protest the event, which will be Sept. 1-4 at the Xcel Energy Center. Marchers will be restricted to one route, with masses of protesters generally confined to a set area.
"There will be a distance," Assistant Police Chief Matt Bostrom said. "You won't be able to be right up on (the Xcel Center), standing there, interacting with people as they go in the front doors. But you will be close enough that people, if they were at those doors, can hear you."
Neither the route nor the location of the stationary area has been set, Bostrom said. The city is studying four possible march routes for the convention's first day and expects to choose one by May 31.
While demonstrations throughout the city would be subject to normal permit requirements, those in immediate proximity to the Xcel Center would be confined to the protest area.
Known as "free speech zones," those areas have become the norm at national nominating conventions. But they remain controversial. During the 2004 Democratic National Convention in Boston, protesters were kept behind high fences, prompting comparisons to Guantanamo Bay.
On February 19th the Maplewood City Council agreed to a settlement which terminated former City Manager Greg Copeland's employment (our article).
Councilperson Nephew elaborates on his decision to vote in favor of accepting the settlement. Rather than diminish the whole by quoting a part, please read it in its entirety.
Stephan
At a special 2/19/2008 meeting the city council, by unanimous 4/0 vote (Ms. Longrie absent), agreed to a settlement with Mr. Copeland (medium sized pdf). The City agreed to continue pay and benefits through June 14, 2008, and to reimburse Copeland for any outstanding expenses stemming from the November 2007 trip to New Orleans. The City will also reimburse Mr. Copeland for two Christmas wreaths he had purchased.
The City releases all known civil claims against Mr. Copeland; but not any unknown claims, any criminal claims, or the right to include Copeland should any third party sue the City for the consequences of any action or inaction of his for which he does not have statutory immunity.
At their January 22, 2008 meeting the ISD 622 (North St. Paul, Maplewood, Oakdale) Board voted unanimously to withdraw from the East Metro Integration District (EMID) in 2oo9, planning to develop their own collaboration with neighboring districts. Along with many parents, Representative Nora Slawik addressed the board that evening suggesting that they, at the very least, slow down in their decision making process.
Tonight the board takes up transportation and open enrollment issues (medium sized pdf) that will affect whether parents electing to keep their children in EMID via open enrollment will receive help with transportation. The board appears to be trying to close that door. The parents, who have formed the group emidfamilies.org, think the Board may be misinterpreting sections of MN statute 124D (Education Programs).
For readers who, like me, are not yet fully conversant with the issues, attending or watching tonight's board meeting should help our learning process. ISD 622's website says that "School Board meetings are also broadcast live on Cable Channel 20 and are rebroadcast daily at 10 a.m. and 4 and 8 p.m."
Stephan
Alex Davy reviews the Palkovich case in the 2/13/2008 Lillie Newspapers: A matter of justice.
Please read the entire article.
Maplewood police civil service commissioner Marlene Palkovich is suing against the city, claiming a misconduct inquest led by labor relations attorney Charles Bethel violated her privacy and besmirched her reputation.
...Palkovich and [her attorney Robert] Fowler were denied an opportunity to address the council in a 3-2 vote supported by Longrie, Hjelle and Council Member Rebecca Cave.
...
But in a recent interview, Longrie says it was Palkovich and Fowler who dragged the issue into the public sphere to begin with, by insisting on a public meeting instead of the originally-scheduled closed session. "They could have attended a closed meeting without turning it into the three-ring circus they chose to make it," Longrie says. "Maybe nothing would have come of it, maybe it was all just a misunderstanding - but they chose to televise it. They're the ones publicizing it."
..."[Palkovich] gave money to Nephew's campaign," Longrie says. "She's on campaign literature endorsing him, and she and [Council Member] Kathy Juenemann are good buddies. If she's concerned about her reputation, why is she the one self-publicizing it?"
Amendment I
Congress shall make no law respecting an establishment of religion, or prohibiting the free exercise thereof; or abridging the freedom of speech, or of the press; or the right of the people peaceably to assemble, and to petition the government for a redress of grievances.
Amendment V
No person shall be held to answer for a capital, or otherwise infamous crime, unless on a presentment or indictment of a grand jury, except in cases arising in the land or naval forces, or in the militia, when in actual service in time of war or public danger; nor shall any person be subject for the same offense to be twice put in jeopardy of life or limb; nor shall be compelled in any criminal case to be a witness against himself, nor be deprived of life, liberty, or property, without due process of law; nor shall private property be taken for public use, without just compensation.
Amendment VI
In all criminal prosecutions, the accused shall enjoy the right to a speedy and public trial, by an impartial jury of the state and district wherein the crime shall have been committed, which district shall have been previously ascertained by law, and to be informed of the nature and cause of the accusation; to be confronted with the witnesses against him; to have compulsory process for obtaining witnesses in his favor, and to have the assistance of counsel for his defense.
[emphasis added throughout]
And, the Maplewood Oath of Office
I,************, do solemnly swear (or affirm) to support the Constitution of the United States and the Constitution of the State of Minnesota and will discharge faithfully the duties of the office of Councilmember (or Mayor) of the City of Maplewood, Minnesota, to the best of my judgement and ability, so help me God.
Well I will tell you that I have those same emails and I have been able to trace all those people as well. I know where they live and I know who they are friends with and I know what petitions they have signed, and know it's the same circle of people.
[Maplewood City Council: April 10, 2006]
Alex Davy brings us up to date on the process underway to replace Mr. Copeland in his 2/13/2008 Lillie Newspapers articleLawyer hired to handle Copeland`s removal
Faced with mounting legal questions - and seeking to keep City Attorney H. Alan Kantrud above the fray - the Maplewood City Council hired Attorney Amy Mace of Ratwik, Roszak and Maloney, P.A. to advise them during the removal of suspended City Manager Greg Copeland.
Copeland has hired an attorney and demanded a formal, public hearing and written charges - a hearing he is entitled to under Minnesota statute 412.641. Once a city council has declared its "intent to remove" its manager, it has 30 days in which to hold the public meeting.
...
"I think I understand why Mr. Rossbach suggested that I not conduct this work," Kantrud says. "I think he's looking for the most non-controversial path - after all, I worked right across the hall from Copeland and he was my direct boss."
Still, Kantrud says he's confident he could have guided the city through the firing process. "But I appreciate the intent behind the decision," he says. "It's an attempt to add even more legitimacy to the process."
Contract questions
...
The contract came to light just days after the current Council majority voted to terminate Copeland, and Council member John Nephew says he "seriously questions" its validity. "To my mind," Nephew says, "there is no question that the contract the mayor and Copeland signed is invalid." ..."Basically," Nephew says, "there's a lot of complexity to the whole situation, so I think it's important to have an outside perspective."
...[emphasis added throughout]
