HomeMy WebLinkAbout2002.0729.TCSEM.Minutes •
MINUTES OF THE SPECIAL AND EXECUTIVE SESSION OF THE
FOUNTAIN HILLS TOWN COUNCIL
July 29,2002
Mayor Beydler called the meeting to order at 10:00 a.m.
ROLL CALL - Present for roll call were the following members of the Fountain Hills Town Council: Mayor Jon
Beydler, Vice Mayor Leesa Fraverd, and Councilmembers Kathleen Nicola, Michael Archambault, Susan Ralphe,
Rick Melendez, and John Kavanagh. Also present were Rick Cohen, Town Attorney Bill Farrell and Director of
Administration/Town Clerk Cassie B.Hansen.
AGENDA ITEM #1 - CONSIDERATION OF RETAINING ADDITIONAL LEGAL FIRM(S) TO
REPRESENT THE TOWN OF FOUNTAIN HILLS IN THE HOFFMAN/ROBINSON LITIGATION.
Mr. Farrell reviewed that last week the Town received a request to provide Hoffman/Robinson litigation files to
Attorney Jerry Strict (a former Maricopa Superior Court Judge) for his review. He had responded to Mr. Strict
that if he wanted to participate in the meeting, the Town would have to retain his law firm ahead of time. Mr.
Farrell had copied files contained in his office. He noted that Gust Rosenfeld's office was in the process of
physically moving their office so it was difficult for them to make a copy of everything.• He found out this
morning that Mr. Strict would not be present for the meeting but the Town might hear from him in the future.
Mayor Beydler acknowledged talking with Gerald Strict this morning. Mr. Strict had reviewed the documents
sent to him from Mr. Farrell's office. Mr. Strict had noted that the documentation received was not complete and
that he knew that Fred Rosenfeld was unavailable due to his office move. Mr. Strict had been cautious but
indicated that he was not comfortable making any recommendations or offering the services of either himself or
his firm. He did not feel he had enough knowledge as to whether or not they could be of any benefit. Mayor
Beydler stated his reason for contacting Mr. Strict was a conversation held previously with Fred Rosenfeld. Mr.
Rosenfeld made a specific statement that he did not think his firm should continue to represent the Town in this
case based upon what he perceived to be a conflict. Mr. Rosenfeld's conflict came from the fact that the Town
‘r had entered into a phase of settlement negotiations. Mr. Rosenfeld felt he could not represent the Town in
settlement negotiations at the same time that he represented the former council members and some current council
members as individuals who might not be part of that same settlement approach. Mr. Rosenfeld pointed out that
he did not have any authorization from those individuals to proceed and he would have to talk with Steve Guttell.
Mr. Rosenfeld recommended to Mayor Beydler that he might want to entertain options in the event that Mr.
Rosenfeld's firm was unable to continue. Mayor Beydler said this morning Mr. Farrell had provided information
that Gust Rosenfeld has changed their minds.
Mr. Farrell responded no. He clarified that Gus Rosenfeld could not withdraw from the case. The trial starts two
weeks from tomorrow and without the consent of client and an affidavit from a new law firm saying that they
would not miss the trial date, no judge would let any law firm out of any litigation once they've gone this far in
the process. If someone was going to substitute, they would have to make an avowal to the court that they would
be ready to go to trial on August 13th under the terms and conditions that everyone had agreed to last week at the
pre-trial conference. The judge would not let the firm of Gust Rosenfeld out of the case without the consent of
client and a representation that another firm would make that trial date. Mr. Farrell interpreted what Fred
Rosenfeld was saying that he and Mr. Guttell had not contacted the individual defendants and therefore were
concerned that the settlement might not be acceptable to them. As a result Mr. Rosenfeld perceived a conflict.
He explained that the representation would be difficult for Gust Rosenfeld if they don't have the confidence of
their clients. He thought that Fred was unclear if this council wanted to retain him as counsel or whether the
individually named defendants wanted to keep him. Mr. Farrell stated he had asked Mr. Guttell to be present for
the executive session. He noted that Mr. Cohen was present but he had not seen Mr. Guttell.
.Mayor Beydler said a settlement judge had been appointed at this time. Apparently there was a mediation hearing
scheduled for Tuesday at 3:30 p.m. Mr. Farrell stated that a settlement judge would be assigned randomly. Judge
,.- Coffman had strongly suggested to all that a mediator be utilized. He and Mr. Countryman went through a list of
names and came upon a former superior court judge Dan Nastro, with Dispute Resolutions, who was acceptable to
both sides. A global meeting was set up between the parties for Tuesday afternoon. Mayor Beydler announced
that he had talked with Mr. Nastro's administrative assistant and there was success in getting all parties scheduled
to attend this meeting. Mayor Beydler said the question was who would be attending as the Town's
representative. Mr. Farrell said he would attend and who ever else the Council wanted to instruct to attend.
Mayor Beydler asked Mr. Farrell to clarify how Mr. Farrell could represent the Town in settlement negotiations
since Mr.Farrell was a defendant at the same time. Mr. Farrell agreed there wasn't anything standard about either
case. Traditionally the Town Attorney was not sued. He felt he was being sued in his capacity as the acting town
manager. He could make, and had made, an appearance on behalf of the Town in both lawsuits. With absence of
direction from a majority of the Council to the contrary, he had been representing the Town. He did not view this
as a conflict. He noted that in the Hoffman/Robinson case they were not seeking money damages. He perceived
that people wanted to see if there was a way to settle this litigation globally. As for the Knapp case, Mr. Farrell
stated that Mr. Cohen needed to be present in those negotiations because there were money damages being
sought. Although the Town has been advised, and it was relatively public knowledge, there was the slimmest of
possibilities that council members or the town attorney could be personally held liable in the Knapp case but it
was not out of the realm of possibilities because none of the parties executed any contracts with any of the former
employees of the fire district.
Mayor Beydler asked if Mr. Farrell would have any personal liability from the individual defendants in the event
Mr. Farrell successfully negotiated a settlement that they did not like. Mr. Farrell responded that it would not be
successfully negotiated if they did not like it. All of the defendants would have to sign the dismissal, so
theoretically the case could be dismissed as to the Town. The individually named defendants would go forward
or the Town could settle the case on behalf of the individually named defendants and let the Town go forward.
The case would not be settled and leave some of the named defendants not participating in the settlement. All
defendants would have to be released from liability. One of the things that he had hoped to clear up with some of
the motions was to make it easier for this Council to function as a body of seven. The motions filed to dismiss the
individually named defendants from this litigation were made so that it would come down to the Town as
defendant. This would allow the seven member Council to handle that particular litigation. He agreed this was
out of the ordinary. Normally those motions were granted and that was what he was waiting to hear from on the
Knapp lawsuit as to whether the counts were in and were the seven individual defendants out. If that were
granted then this Town Council was the body that would negotiate the settlement in the Knapp case.
Mayor Beydler noted that in the Hoffman case the judge had not granted that motion. Mr. Farrell said that was
correct because the possibility existed that individual members of the council violated the open meeting law. It
was not possible for the Town to violate the open meeting law. It would be the members of the Town Council
who could. The boundary dispute and contract issues were town issues, which had been the town's position all
along. No one individual from the Town signed any employment contracts. He stated the issue was that the
Town inherited that as a liability. He felt that the judge would grant that motion but again there weren't any
guarantees. He restated that all of the defendants would have to agree or the defendants would have to be
dismissed.
Mayor Beydler said the plaintiff could solve this problem by dismissing the complaint against the individuals.
Mr. Farrell remarked yes to some degree. If it was the will of the majority of this Council to involve another
attorney in settlement, he did not have any objection. -
Councilman Kavanagh said the problem was that Gust Rosenfeld and Bill Farrell could not represent both the
town and the individual defendants. He observed that the problem became with whom does the Council
substitute. He felt it would be extremely dangerous to substitute a new town lawyer at this point with so much
money at stake and so many facts to be learned. He said it would be almost impossible for anyone to be brought
up to speed either for mediation, negotiation, arbitration or litigation. He said the least costly technique would be
to get a separate lawyer for the individual defendants. He referred to a letter received today from the individuals
that request. That would be the simplest and least costly method to the Town and would directly address the
problem with Gust Rosenfeld's law firm presented.
.,. Councilman Kavanagh MOVED that the Town authorize the retention of a separate attorney for the individually
named defendants in the Hoffman/Robinson case. Vice Mayor Fraverd SECONDED the motion.
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Councilwoman Ralphe AMENDED the motion to provide that the attorney be retained from outside Fountain
Hills. She stated that part of the problem with the whole issue of the fire suits from the beginning had been
personalities. She wanted someone who did not have any previous involvement and would be a truly neutral
party who had no knowledge of this. The amendment DIED due to the lack of a second.
Councilman Kavanagh did'not want to restrict the defendants in their options. He said this would be a gesture
that he would want extended to him. Councilman Melendez questioned if the Town was obligated to provide
legal counsel to the previous council. Mr. Farrell said there wasn't a statute or code provision that required the
Town to provide counsel other than what was provided through the Town's insurance coverage. He commented
that it was the practice of most communities to do so.
Councilman Archambault asked if the Town's insurance carrier was paying Gust Rosenfeld. Mr. Farrell replied
no; the Town was paying Mr. Rosenfeld. Councilman Archambault asked if Gust Rosenfeld was still
representing the Town. Mr. Farrell responded yes and that he and Steve Guttell were representing the Town and
all of the named defendants. He commented that former council member John Wyman was being released.
Councilwoman Ralphe asked if Gust Rosenfeld was representing everyone and there was a new attorney named to
represent the Town, then would that mean the new attorney would represent the Town in a settlement and defense
would go away. Mr. Farrell said no. Even if the council were to vote 7 — 0 on the original motion, he was not
absolutely sure he could find a law firm or competent attorney who would be willing under those circumstances to
take on this case.
Mayor Beydler restated that Mr. Strict's point of view was that even if his firm was interested or willing to take
this case, it would only be for purposes of proceeding with Judge Nastro's settlement negotiations as a third party
representing the Town's interests in that settlement and it would not be to take on this entire case. He agreed with
Mr. Farrell that a law firm could not be found who would take on this trial case two weeks before it begins. The
attorneys realized that would be inappropriate and would require a continuance for them to do an adequate job.
Mr. Farrell agreed that even if the Council were to pass this motion 7 — 0, the problem would be to try to find
somebody who was competent and who could accommodate Judge Coffman's schedule. He was not sure that
outside counsel could be found and secured.
Councilwoman Ralphe questioned which might be easier to secure: having the Rosenfeld firm continue to
represent the Town in defense of the suit or a new attorney for a settlement. Mr. Farrell answered perhaps to
both. He explained that this was important because of the timing issue. He reiterated that it was fine with him, if
the Council did not want him to attend the settlement mediation meeting. He reminded the Council that someone
had to attend and represent the Town. If the Council wanted to have another firm do the mediation and let him
find a firm for the individual defendants, that would also be an option.
Councilman Archambault asked if the individually named council members had a different attorney in mind.
Vice Mayor Fraverd answered no. She asked what Judge Coffman would do if they fired Gust Rosenfeld and
stated that they no longer had any representation and they would like a continuance in order to find someone. Mr.
Farrell answered he was not sure what the judge's reaction would be.
Councilman Melendez referred to the letter received this morning from five named defendants. The letter states
that it appears that Mr. Guttell and Mr. Rosenfeld were not interested in representing them. He asked how did this
Council know this was true. He pointed to an earlier statement that they had not resigned. Mr. Farrell offered
that up till last Friday Steven Guttell had not met with any of the other individual defendants. He stated that he
had provided summaries to the extent that it was legally possible. He did not provide summaries of the executive
3ions to those three members who were no longer on the Council.
Mayor Beydler said that Mr. Rosenfeld had told him that he doubted that the Town would fire them or accept
their resignation because by doing so the Council would eliminate its ability to seek remedy if the Council later
discovered that the attorneys had any culpability to malfeasance or malpractice. Councilman Kavanagh explained
the purpose of his motion was to avoid all of these unpleasant alternatives. He stated there was a group of
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defendants who were named for whom an adverse ruling could reflect poorly on them and their reputations. The
attorneys supposedly representing them had never contacted some defendants and they were concerned. He felt
Gust Rosenfeld was correct, as there was something of a conflict. There wasn't any major expense here and he
wanted to give these people the comfort of knowing that their interests were being looked after. It was a courtesy
that he would extend to former council members and a courtesy that he would expect to be extended to him. He
stated it was in everyone's,best interests to look after former council members legal interests. If that were not
done then good people would not step up to serve the Town if they felt that they would be abandoned afterwards.
He stated it was a worthy and proper gesture and resolved the problem of counsel conflict.
Councilwoman Nicola asked how many of the main defendants besides Councilman Kavanagh and Mr. Farrell
have shown up for any of the court hearings or tried prior to this date to contact their attorney or discuss the
matter with their attorney. Mr. Farrell could not recall but thought it was only Councilwoman Nicola and
Councilman Kavanagh and former council member John Wyman who had attended. Councilwoman Nicola said
there was a certain amount of responsibility upon the individually named defendants to contact their attorney and
discuss the matter with them instead of waiting until two weeks prior to trial. Councilman Kavanagh interjected
that they did not have an attorney. Councilwoman Nicola said they had an attorney in Gust Rosenfeld and Steve
Guttell. Councilwoman Nicola said that when they attended the training for newly elected officials they received
a brief lesson on open meeting law. She understood from that that she had to be very careful. If she were to be
charged with a violation such as this, she would be paying.for her own attorney. The Town would not be
responsible for representation. The prior council did graciously vote to provide an attorney for the individually
named defendants as well as Mr. Farrell and the Town. She would not support going out and looking for a new
attorney to come in two weeks before the trial. She felt they needed to work with the attorneys already retained or
entertain another motion for an attorney that would help with the global settlement.
Mayor Beydler restated that Fred Rosenfeld did not state that his firm wasn't capable of representing the
individuals. Mr. Rosenfeld had commented that he could not work on the negotiated settlement concurrently with
defending the individuals. His law firm was not suggesting that they couldn't represent the individuals. If the
individuals felt comfortable with this attorney that they have been working with all along, then he felt that
Councilwoman Nicola's recommendation might be appropriate: retain an attorney to represent the Town in the
global settlement issue and allow the individuals to continue with their law firm representation that they have had
from the beginning.
Councilman Kavanagh asked for clarification of the conflict as perceived by Gust Rosenfeld. Mr. Farrell
acknowledged that he had not had the in-depth conversations that the Mayor has had with Fred Rosenfeld on this
issue. He commented that his firm had expressed concern about the multiplicity and adequacy of representation.
Councilman Kavanagh said that would tend to reflect on court and not mediation. Mr. Farrell said that was
correct. He noted that Fred had not been involved nor had Mr. Cohen. Gust Rosenfeld and Lewis and Roca have
not been involved in attempts to settle. That had been the efforts of Mr. Countryman and himself, and to some
degree Jill Kennedy at the County level. The larger meetings that those firms had been involved in were held
because the court ordered those. There was a mandatory pre-trial settlement conference at Gust Rosenfeld's.
office in which all attorneys were present for all of the named defendants in the Hoffman/Robinson case and the
court had required that meeting. As for meeting with a mediator, he pointed out that the name of Dan Nastor had
been agreed to on Thursday of last week. The first choice had been Tom Irvine and he was unavailable. Several
other mediators had been discussed and then the name of Dan Nastor came up. Councilman Melendez asked
when did this come up. Mr. Farrell said this had been evolving since the executive session held last Tuesday. Mr.
Nastor was acceptable to all as a former superior court judge.
Councilwoman Ralphe asked Mr. Farrell if Gust Rosenfeld was serving the Town adequately. Mr. Farrell said
the<. it was not possible to answer that with a yes,no,or maybe answer. He said he would prefer to give an answer
• the Council in executive session.
Councilman Kavanagh said it was unfair that a case could be made for not providing the individual defendants
with representation because they had not been appearing in court. If the gauge of whether or not the individuals
deserved representation was their appearing in court, then he suggested that the Town did not deserve
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representation because he and Councilwoman Nicola were the only council members appearing in court. He said
that was not relevant. He expressed concern with regard to the representation, as there hadn't been any
depositions. He was afraid that he would be cross-examining people and they would say things and the attorney
Now would not have any idea as to what was going on. That was one of the reasons he had signed this letter. He felt it
would be a good idea to get some separate attorneys if the town could secure one at minimal costs.
Councilman Archambault asked Mr. Farrell if depositions were part of the process of discovery. Mr. Farrell said
former council member John Wyman, Mike Scharnow, Tim Yoder, and the other witnesses were one that the
other side had listed. He stated that the only deposition that was taken in this case was his. Councilman
Archambault asked why the Town's attorney did not take depositions. Mr. Farrell said that would be a question
for Mr. Guttell. Councilman Archambault expressed concerned that now the trial was getting close, the
individuals were anxious about having adequate representation. The named defendants certainly had plenty of
time to call Gust Rosenfeld's office and find out how the case was going.
Councilman Kavanagh stated that they were not asking for different representation for the Town at this point.
Bringing in any new party who was not up to speed for anything would be disastrous. He clarified that they were
talking about an additional legal counsel so the current legal process would not be altered. This would give legal
peace of mind to a small group of people who served the Town for many years. Councilman Archambault
commented that Mr. Farrell said the motion for dismissal of individual defendants would be approved. Mr.
Farrell refuted that he made that statement. Councilman Archambault continued that if this case were lost for the
individual defendants, they could ask for tort damages and those named council members could be held
individually liable for damages. Councilman Kavanagh argued that was all the more reason to have that law firm
and they required separate representation. In recognizing that fact, he felt the Council should extend the former
council members that courtesy.
Councilman Melendez asked what type of costs were involved. He was inclined to extend that courtesy. He
asked why hadn't the law firm told the Council that they were no longer willing to represent the former Mayor.
Nov Councilman Kavanagh said it was brought up in the memo and was why the situation had surfaced. Councilman
Melendez corrected Councilman Kavanagh by quoting from the letter by the previous council. Councilman
Kavanagh countered that he was referring to the e-mail from Mayor Beydler to this Council dated July 26th where
Mayor Beydler stated that Gust Rosenfeld wished to withdraw from the Hoffman case because of a conflict of
interest. That was what had raised this whole issue.
Councilwoman Ralphe asked if that information shouldn't have come through the Town Attorney Bill Farrell
since he was the one who had hired them. Councilman Kavanagh said he did not know it didn't. Mr. Farrell said
that technically it did, but he could not go into the executive session in which the issue was raised. He
commented that conversation was held a couple of weeks ago. Mr. Farrell noted that this was not a new problem.
Vice Mayor Fraverd noted that this agenda was before the Council for a couple of different reasons. She said
there was a motion on the floor for retaining additional counsel and she would like to pursue that option. As far
as the additional attorney for mediation, she did not think anyone had been looked at so the Council would not be
able to move forward on that issue. Mayor Beydler said this Council needed to be focusing on settlement, as that
was the last policy statement made by the Council. He felt the Council needed to be talking about adding an
additional legal representative or possibly having the town attorney accompanied by an appropriate representative
from this Council. He had confirmed that this was not an unusual circumstance with the settlement judge's
assistant. The representative could accompany Mr. Farrell to the mediation or the settlement hearing to offer
input, if necessary, to ensure that the Council's wishes were brought forward. He said it was more important that
the Council spend their time talking about if Gust Rosenfeld was providing adequate representation for the Town
at This point and whether or not they were appropriate for the individuals. It appeared to him that Councilman
.,avanagh's motion might leave the Town with the representation of a firm with whom Councilman Kavanagh
was not comfortable. Councilman Kavanagh remarked that it was Mayor Beydler who had relayed that Gust
Rosenfeld said there was a conflict of interest involving representing individuals in the Town and that was why he
wanted to remove the cloud. Councilman Kavanagh suggested removing the smaller of the two representations to
a new attorney and let Gust Rosenfeld continue with the major issue.
Town of Fountain Hills Meeting Minutes of 7/29/02
Page 5 of 9
Councilwoman Nicola asked if these concerns stemmed from the attorneys or from second hand conversations.
Mayor Beydler said he did not know what conversations Mr. Farrell had had with them but that information
should be discussed in executive session. Mr. Farrell agreed but did state that they had not expressed any
concerns in writing.
Councilman Archambault asked Councilman Kavanagh if he wanted Gust Rosenfeld to move forward with this
case. Councilman Kavanagh responded that he was not requesting that Gust Rosenfeld not represent the Town.
He was asking that a separate attorney be retained for the individually named defendants.
Councilwoman Ralphe said that if there were a separate attorney for the individuals and the Council was going in
the direction of a settlement, then she felt that the Town was going in two different directions. Mr. Farrell agreed
that was the case. He said that the problem was the issues that needed to be resolved went beyond the
Hoffman/Robinson case. He noted that the Hoffman/Robinson case was not the lynch pin of the settlement as that
was the Knapp case.
Councilman Archambault asked what would the ramifications be if the Town lost the Hoffman case. Would the
Knapp case go away? Mr. Farrell agreed that it did, in theory. Councilman Archambault asked if then the
plaintiffs could file for tort damages. Mr. Farrell said they might. Councilman Archambault asked if the Town's
liability policy would pay that. Mr. Hudson responded that he could not say what SW Risk would do. He
explained that they were an insurance company and these claims had been turned over to them. He was the
president but he excused himself from anything pertaining to his own town. That was a requirement to serve on
the board. He advised that the council should go through the town attorney or the attorneys at the Risk Pool.
Councilman Archambault asked if the Town policy was in jeopardy, would the Town not have a lawyer from the
insurance firm representing the Town. Mr. Farrell responded yes and explained the Town's process when a
lawsuit was filed. The insurance company would respond to say if the lawsuit was covered. If the lawsuit was
not covered, the town would hire their own attorney and the Town would have to pay for money damages. The
current Knapp lawsuit was sent to the Pool the day it was served. The Pool had declined to cover the Town as it
lallw was filed but stated they would provide the Town with the defense. The pool was paying for the defense in the
Knapp case. If the damages were awarded against the Town, the Pool would probably not pay them but would
reserve the right to make that decision at the time the damages were awarded. Councilman Archambault asked
what position was the Pool taking regarding the Hoffman/Robinson case. Mr. Farrell stated the Pool declined to
cover the Town because they were not seeking monetary damages. However, the Pool said they would contribute
a portion of what the Town spent on attorney fees under the provisions of the policy. The Pool was picking up a
portion of what the Town was paying to Gust Rosenfeld. Councilman Archambault reiterated that technically the
Pool was not covering the Town. Mr. Farrell said as the suits were filed he would agree. Councilman
Archambault noted that if monetary damages were assessed, the Pool would not cover them. Mr. Farrell
disagreed. He explained that if the Mr. Countryman changed his theories to something else and damages were
awarded, then the insurance company would probably step up and pay. If it remained the traditional contract case
and the issue is whether or not the contract was breeched, it would not be covered.
Councilman Kavanagh thought it best to limit discussion to the agenda item. Councilman Melendez asked for
clarification on the agenda item. Mr. Farrell responded that the way the agenda was worded the Council was
given broad enough authority to discuss matters related thereto. He suggested that if the Council was
uncomfortable this could be reagendized for Thursday's meeting. Councilman Kavanagh replied that if there
were some concern on the amount he would amend the motion. Councilman Kavanagh AMENDED the motion
to say that the payment would not exceed what was presently being paid to Mr. Cohen. Vice Mayor Fraverd
SECONDED the amendment.
arrell said that Councilman Melendez's concern went to the specific wording of the agenda rather than the
.otion. Councilman Kavanagh asked if there was a problem including this. Mr. Farrell said no but as Mayor
Beydler had pointed out, Mr. Farrell was one of the named defendants. If a majority of the Council was
uncomfortable, the Council could move to amend the agenda item under the emergency clause because
Councilman Melendez would not be here for the August I' Council meeting. Mayor Beydler said he had a hard
time with this motion. If the Council was beginning to doubt the integrity or the ability of this firm, then why was
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•
the Council considering giving the individually named defendants (at the Town's expense) a new and
conceptually better law firm to represent their interests. That would leave the Town with the firm of Gust
Rosenfeld and there were questions regarding their ability, commitment, or willingness to do the job. It was his
opinion that the firm was uncomfortable with representing the Town in the area of settlement because they had
been working continuously on defense. He was concerned that what the agenda was asking for was in the Town's
best interests right now. .He did not think the motion made was germane to the agenda item and he would
certainly be voting against this, as it was not in the Town's interests. It was in the individuals' selfish interests,
which he understood. He did not want to get stuck with a lemon. Councilman Kavanagh pointed out that this
motion did not let Gust Rosenfeld out of Town representation. He restated that no new firm could come in at this
point, learn the facts,and represent either side in settlement or in litigation.
Mayor Beydler disagreed with Councilman Kavanagh. He said that he had talked with the attorneys who were
considering taking on the case and it was their point of view that if there were serious efforts and good faith on
the Town' behalf to negotiate towards a settlement, then there was every reason to believe that the plaintiffs
would be willing to look for a continuance, if time was the problem. He felt that was a consideration.
Councilman Kavanagh reiterated that was a separate item that could be brought up.
Councilman Archambault expressed it did not make sense to try to hire another firm at this time. He felt they had
to stick with Gust Rosenfeld. Councilman Kavanagh moved the amendment and the motion. Councilwoman
Nicola asked what the purpose was of hiring the new firm that Councilman Kavanagh wanted. Councilman
Kavanagh again stated that the new firm would represent the individually named defendants in any litigation.
Councilwoman Nicola questioned his reasoning since Councilman Kavanagh said a new attorney could not be
brought up to speed. Councilman Kavanagh said that the individuals needed someone who would watch out for
their interests because of potential conflicts. Councilwoman Nicola agreed with Mayor Beydler. Why would the
Council leave the Town, who has the deep pockets, in the hands of Gust Rosenfeld? Councilman Kavanagh
responded that it was because of the conflict. Councilwoman Nicola said there hadn't been a conflict so far.
Councilman Kavanagh refuted her statement, as Mayor Beydler was the person who said that Gust Rosenfeld
16110* relayed there was a conflict. Mayor Beydler thought that maybe the conflict existed all along and that there were
individuals who were looking into the issue of potential malfeasance and malpractice. A roll call vote was taken
with the following results:
Mayor Beydler Nay
Councilman Archambault Nay
Councilwoman Ralphe Aye
Councilwoman Nicola Nay
Councilman Kavanagh Aye
Vice Mayor Fraverd Aye
Councilman Melendez Aye
The amendment CARRIED on a vote of 4—3.
Mayor Beydler called for the vote on the amended motion. A roll call vote was taken with the following results:
Mayor Beydler Nay
Councilman Archambault Nay
Councilwoman Ralphe Nay
Councilwoman Nicola Nay
Councilman Kavanagh Aye
Vice Mayor Fraverd Aye
Councilman Melendez Nay
The amended motion FAILED on a vote of 5 -2.
..ouncilman Kavanagh MOVED that consideration to retain additional legal firms for Fountain Hills be tabled
until after such time as Mr. Farrell no longer represented the Town or a law firm withdrew. Vice Mayor Fraverd
oilloy SECONDED the motion. Councilman Melendez said he needed to move into executive session for some issues
that were vital to this motion. Councilman Kavanagh MOVED to table this item until after the executive session.
Vice Mayor Fraverd SECONDED the motion. The motion CARRIED unanimously.
Town of Fountain Hills Meeting Minutes of 7/29/02
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AGENDA ITEM #2 - PURSUANT TO A.R.S. §38-431.03.A.4. AND A.R.S. §38-431.03.A.1., VOTE TO GO
INTO EXECUTIVE SESSION FOR: PURPOSES OF OBTAINING LEGAL ADVICE FROM THE
TOWN ATTORNEY REGARDING PENDING OR CONTEMPLATED LITIGATION SPECIFICALLY:
low HOFFMAN/ROBINSON/KNAPP VS. TOWN, ET AL.; AND DISCUSSION OR CONSIDERATION OF
EMPLOYMENT, ASSIGNMENT, APPOINTMENT, PROMOTION, DEMOTION, DISMISSAL,
SALARIES, DISCIPLINING OR RESIGNATION OF A PUBLIC OFFICER, APPOINTEE OR
EMPLOYEE OF ANY PUBLIC BODY, EXCEPT THAT WITH THE EXCEPTION OF SALARY
DISCUSSIONS, AN OFFICER, APPOINTEE OR EMPLOYEE MAY DEMAND THAT SUCH
DISCUSSION OR CONSIDERATION OCCUR AT A PUBLIC MEETING. THE PUBLIC BODY MUST
PROVIDE THE OFFICER, APPOINTEE OR EMPLOYEE WITH SUCH PERSONAL NOTICE OF THE
EXECUTIVE SESSION AS IS APPROPRIATE BUT NOT LESS THAN 24 HOURS FOR THE OFFICER,
APPOINTEE OR EMPLOYEE TO DETERMINE WHETHER SUCH DISCUSSION OR
CONSIDERATION SHOULD OCCUR AT A PUBLIC MEETING. (THE COUNCIL WILL DISCUSS
THE PROPOSED CONTRACT FOR THE NEW TOWN MANAGER.)
Councilman Kavanagh MOVED to recess the special session and convene the executive session. Vice Mayor
Fraverd SECONDED the motion. The motion CARRIED unanimously.
AGENDA ITEM#3-RETURN TO SPECIAL SESSION.
Mayor Beydler reconvened the special session at 11:10 a.m.
AGENDA ITEM #4 - DISCUSSION OF THE PROPOSED CONTRACT FOR THE NEW TOWN
MANAGER WITH POSSIBLE DIRECTION TO STAFF.
Mr. Farrell suggested that the Council continue the matter until the August 1, 2002, council meeting. Mayor
Beydler asked if the offer shouldn't be revised to reflect the omission of the escrow agreement and the$30,000 be
the gross dollar amount. Mr. Farrell said he would revise the offer and send it to the candidate. Councilman
low Archambault moved to counter Mr. Pickering's offer with the two items as discussed and to reagendize this item
for the August 1, 2002,council meeting. Councilwoman Ralphe SECONDED the motion.
AGENDA ITEM#5-ADJOURNMENT.
Councilman Archambault MOVED to adjourn. Vice Mayor Fraverd SECONDED the motion. The motion
CARRIED unanimously. The meeting adjourned 2:07 p.m.
Town of Fountain Hills Meeting Minutes of 7/29/02
Page 8 of 9
TOWN OF FOUNTAIN HILLS
By: / a
Jon Beydl- , May.
ATTEST: eiviit•
Cassie B. Hansen,
Director of Administration/Town Clerk
n .,
•
PREPARED BY: l'' I i'/ )
Bev Bender,Executive Assistant
CERTIFICATION
I hereby certify that the foregoing minutes are a true and correct copy of the minutes of the Special and Executive
Meeting held by the Town Council of Fountain Hills on the 29th day of July, 2002. I further certify that the
meeting was duly called and that a quorum was present.
DATED this 15th day of August 2002. . _.
lofty eit4.4.L .113 ilitAs...,
Cassie B. Hansen, Director of Administration/Town Clerk
,
fir.,
Town of Fountain Hills Meeting Minutes of 7/29/02
Page 9 of 9