Agenda - Council - 10/10/2006 - Laserfiche WebLink

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_52_ Finance Officer Lund mentioned Mr. Hegg's costs had increased $500. Councilmember Elvig expressed he does not think the City should pay any of it. He stated they talked about sending people to China, but to get a bill after the fact is so jumbled. Councilmember Elvig mentioned the Council stated there is a cap on the spending. He also noted nothing was brought up about Mr. Hegg's fees nor were costs discussed and Council was not made aware of Mr. Hegg's costs. Councilmember Strommen stated she does not agree with the proposal, but in the discussion of last week, to the point of Mr. Hegg's services, the Council discussed costs that night. She stated it is unreasonable for Mr. Hegg to assume he would be charging for his services. She stressed she believes the City Council does bear some responsibility. She stated the Council had not asked the questions or gotten to the details it should have. Councilmember Strommen said Mr. Hegg should have laid out the costs and she is confused by how Mr. Hegg could bill Ramsey and not Eden Prairie. Mayor Gamec stated the Lilli Pan expense is questionable. Councilmember Elvig mentioned he specifically asked Mr. Hegg how he gets paid on this. He reported Mr. Hegg told him the Chinese set individuals up very well Councilmember Strommen expressed questions about the hotel expenses. Mayor Gamec asked Attorney Goodrich if he could go through the expenses submitted and see what agreement he could come to with Mr. Hegg. Councilmember Jeffrey pointed out on the bill that the $8,832 is less the $4,500. He indicated the overage on the China trip is $8,834 on a $4,500 cap. Councilmember Jeffrey recommended paying Mr. Hegg only the agreed upon $4,500 cap. Mayor Gamec asked to review the expense fees and again questioned the Lilli Pan expenses. Councilmember Elvig agreed with Councilmember Jeffrey to pay $4,500 and no more. He asked if a proposal had been made to hire him. Councilmember Olson mentioned if one looks at the whole thing logically and what HSP & Associates provided, it would be ludicrous to think the City would not be billed. She stated the Council could not expect to get a bill and not pay for accrued costs. Councilmember Olson stated the Council should look at what it got out of this and what it could potentially still get. She mentioned a couple Chinese businessmen had been to Ramsey and talks with them are ongoing. She asked if these are opportunities the Council wants to turn its back on and not pay HSP. Councilmember Pearson stated he agrees somewhat with Councilmember Olson and believes there was a misunderstanding over the total amount. He stated the Council should negotiate on the amount so as not to destroy a good opportunity for the City. City Council Work Session / August 14, 2006 Page 2 of 9