City Council Minutes 06-13-2013 SpecialMINUTES
SPECIAL MEETING - MONTICELLO CITY COUNCIL
Thursday, June 13, 2013 — 6:00 p.m.
Academy Room, Monticello Community Center
Present: Clint Herbst, Lloyd Hilgart, Tom Perrault, Glen Posusta, Brian Stumpf
Absent: None
Other: Wayne Oberg, Jeff O'Neill, Joel Jamnik, Cliff Greene, Megan Walsh
1. Call to Order
Mayor Herbst called the special meeting to order, which had been tabled from June 10,
2013, at 6:03 p.m. and declared a quorum present.
2. Purpose of Special Meeting: Consideration of FiberNet Bond Litigation options
Attorney Cliff Green introduced himself and Megan Walsh, with the firm of Green Espel,
and noted they are representing the city in regard to possible litigation regarding the
FiberNet Bonds. He explained that there were potential claims of securities fraud
involving the sale of the FiberNet Monticello bonds. Green Espel was selected by the
League of MN Cities to research the claims to determine whether the potential for a
lawsuit existed. Although there was no indication of securities fraud and it was felt that
the City would win in the event of a lawsuit, the Council did direct Green Espel to
negotiate in good faith with the bondholders' trustee to determine whether a settlement
could be reached. Attorney Cliff Green talked about the settlement terms which have
been negotiated which would result in a payment of $5.75 million to the bondholders in
exchange for dropping all claims against the city. This settlement is subject to approval
of the courts prior to any payments being made.
Attorney Cliff Green explained that Council was apprised of the terms of settlement in
the closed meeting and no straw poll was taken or opinions expressed in regard to the
proposed settlement. Attorney Cliff Green asked for any comments or questions from
Council.
GLEN POSUSTA MOVED TO APPROVE THE PROPOSED SETTLEMENT
RELATED TO THE TELECOMMUNICATIONS REVENUE BONDS {FIBERNET
MONTICELLO PROJECT} AS DETAILED IN THE TERM SHEET FOR
SETTLEMENT, DATED JUNE 13, 2013, SUBJECT TO FINAL DOCUMENTATION
TO BE PREPARED BY THE CITY'S LEGAL COUNSEL AND CITY STAFF AND
TO DIRECT THE CITY'S OFFICERS AND STAFF TO EXECUTE SUCH
DOCUMENTS AND TAKE ALL STEPS NECESSARY TO EFFECTUATE THAT
SETTLEMENT. TOM PERRAULT SECONDED THE MOTION. MOTION
CARRIED 5 -0.
City Council Special Meeting Minutes — June 13, 2013 Page 1
3. Adjourn
BRIAN STUMPF MOVED TO ADJOURN THE SPECIAL MEETING AT 6:10 P.M.
TOM PERRAULT SECONDED THE MOTION. MOTION CARRIED 5 -0.
Recorder: Catherine M. Shuman
Approved: June 24, 2013
Attest:
Cit istrator
City Council Special Meeting Minutes —June 13, 2013 Page 2