By Anne Thom

In the laws of science, sparks do not spontaneously fly from a piece of paper. In the laws of politics that observation is refuted.

Stacy Councilor Mel Aslakson, handwritten memo in hand, fanned some flames on Tuesday, March 27.

Aslakson's memo addressed to Mayor John Daher and Councilor Michael Carlson stated: "George Hoff has been contracted to handle legal matters and/or negotiations with the MN State Board of Municipal Adjustment and Wyoming Township.

"John Daher and Michael Carlson have not been authorized by the current Stacy City Council to negotiate on behalf of the city nor interfere with Esq. Hoff's efforts that are ongoing. The city in no way should jeopardize the annexation process."

Council members Tony Olivolo and Barbara Avalos were copied.

Mayor Daher had made an addition to the agenda that evening saying he and councilor Carlson had met with Wyoming Township regarding annexation issues. Daher listened to Aslakson read his statement and said he had taken Carlson with him because Carlson, as the previous mayor of Stacy, was most familiar with the issue of Wyoming Township annexation and had been directly involved in authorizing litigation.

Aslakson wanted to know why it had not come before the council to decide who would go along.

City Attorney Peter Grundhoefer interrupted and suggested that perhaps the council go into a closed session at this time as there is pending litigation on the matter.

Daher said "no" and went on to say publicly he and Carlson were not there to enter into any negotiations with Wyoming Township. They were there to deliver an offer and he said, "I feel as mayor, I have the right to do that."

Aslakson objected that the council had not been informed that there was going to be a meeting and he felt that as a resident for 44 years, he had the right to know. He said he didn't think Daher was authorized to take that action and said, "there could have been a better resident than Michael Carlson" to bring to the meeting.

Aslakson said attorney George Hoff should have gone along instead. He told Daher, "You had information we didn't have," and he said Daher was jeopardizing the city's position. Aslakson went on to say he didn't think going to Wyoming Township to deliver a proposal was in the best interest of the city. He said he was elected to act in the best interest of the city of Stacy.

Daher shot back that he had not decided to go to Wyoming Township on his own; he had been asked to come. "We (Daher and Carlson) didn't have any authority to make any decisions, to make any offers. That is the council's decision."

Aslakson said again that the council had not been informed of their action. Grundhoefer interjected that he and Hoff knew about the meeting. The attorneys had advised Daher and Carlson not to make any offers or to authorize any agreement without the council's input. A meeting without that was fine. Aslakson said, "So, I could go and meet with Wyoming Township?"

Grundhoefer replied "I wouldn't recommend it." Carlson looked at Aslakson and said, "I want to know what the real thing is here?"

Carlson said Aslakson was essentially behaving foolishly and that the shoe was beginning to fit.

Aslakson responded that Carlson was making a personal attack on him.

Councilor Tony Olivolo said, "I didn't know we were annexing anything."

Daher looked exasperated and said, "You have an obligation to know what is going on in the city." A recess was called then in order to cool down the discussion with a closed session to follow at 8:20 p.m.

The closed session of the meeting was to address litigation pending against Richard Knutson, Inc. RKI had been hired more than a year ago to work on sanitary and sewer infrastructure, part of the Chisago Lakes Joint Sewage Treatment Plant project along Stacy Trail on the east side of the city.

There were substantial delays as the work progressed leaving both City Engineer Chuck Schwartz and the council increasingly frustrated as they tried to work with RKI.

Schwartz had tried numerous times to light a fire under RKI and keep the project moving. The city finally had to hire another contractor to complete the work. It was subsequently discovered that RKI had failed to pay its subcontractors, resulting in the filing of liens then against the city.

A closed meeting was held on March 20 on the matter as well. Not only has Grundhoefer been working on the pending litigation, but the firm of Hoff, Barry and Kozar of Eden Prairie has been retained by the city. The city found itself named as a respondent in a civil matter by FPI Paving Contractors vs. RKI. FPI Paving is a subcontractor of RKI. Stacy is at this time withholding payment of $70,000 and RKI has notified the city that they plan to file a claim for arbitration if the matter is not resolved. The filing date was given as March 22, 2007.

FPI Paving Contractors served the city with a lawsuit on March 14 claiming RKI owes them $64,377.28. FPI is claiming the city has been unjustly enriched at their expense. The city of Stacy now finds itself in the middle and must file a claim for arbitration against RKI or settle with RKI, according to minutes of the closed meeting that have been made available to the Post Review.

The need for the closed meeting was stated as necessary in order for the council to adequately and comfortably consider legal options and advice that are in the best interest of the city.

The agenda for the closed March 20 meeting was legal basis for commencing arbitration proceedings, the city's defenses and potential legal exposure to the threatened action by RKI against the city, the city's defenses and legal exposure to the action commenced against the city by FPI and possible settlement scenarios.

Now, as the council went into yet another closed session on this matter, there is nothing new to report regarding any decision. The lack of public information is cited as covered under attorney client privilege. The closed session lasted approximately 30 minutes. The regular council meeting reconvened at 8:55 pm.