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Mr. Shainess opined the other thing that will happen, as Commissioner Tossey mentioned, is a chilling effect with HRA contracts. He was challenged by the notion that getting an anonymous opinion results in then finding there is an issue of legality, especially when the HRA Attorney prepared the contract. He noted those types of concerns usually do not come to your awareness through an anonymous memorandum. Mr. Shainess felt, however, there was no great consequence for going down this road since the HRA counsel drafted the contract, indicated it is legal, and it had been extensively negotiated over several months. Vice Chairperson LeTourneau thanked Mr. Shainess for his comments. Commissioner Strommen asked for clarification whether the original professional contract was drafted with the assistance of the City Attorney, and not the HRA Attorney. Mr. Shainess corrected his earlier comment and agreed the City Attorney had been involved. City Attorney Goodrich advised that with the original contract in 2010, he had participated with the first 15 -20 articles of contract language. Exhibit A was originally presented by Landform and then negotiated by the Development Team (HRA Executive Director Ulrich and HRA Assistant Executive Director Nelson). In 2011, there was an amendment to Exhibit A language relating to incentive payments. City Attorney Goodrich stated he was not sure about HRA Attorney Bray's involvement, thinking it may have been minimal. Vice Chairperson LeTourneau stated the charge of the HRA tonight was to come to consensus whether to seek outside counsel. Motion by Commissioner Kuzma, seconded by Commissioner Strommen, to direct staff to obtain an outside legal review of the current issue in an amount not to exceed $2,000. Further discussion: Commissioner Riley stated the HRA needs to be sure the right questions are asked of outside counsel. Commissioner Tossey stated due diligence was already done with the contract so he will not vote to waste this money and will support fulfilling the contract. He asked how this expenditure will be funded. HRA Executive Director Ulrich stated it will be paid from HRA Professional Services. Commissioner Riley stated there is need to review the behavior and not just the contract. Commissioner Strommen agreed the intent of an outside opinion is to "review the current issue," which would be beyond the contract. She asked that staff return if additional funding is needed for that level of review. Commissioner Elvig stated the issue is whether the HRA stepped into something that is illegal, not an issue of whether the HRA will honor its contract. Commissioner Tossey pointed out that previously, Commissioner Elvig supported increasing the incentive fee compensation and had not voted to support the 2011 contract. Commissioner Elvig stated he had not supported either Landform contract. Vice Chairperson LeTourneau limited discussion and called the question. Motion carried. Voting Yes: Vice Chairperson LeTourneau, Commissioners Kuzma, Strommen, Elvig, and Riley. Voting No: Commissioner Tossey. Absent: Chairperson Backous. Housing and Redevelopment Authority / February 12, 2013 Page 5 of 6