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Panel to finalize settlement on Tuesday

Closed session for possible hire also on special meeting agenda

Published: Monday, Oct. 14, 2013 1:15 a.m. CDT

DIXON – The City Council on Tuesday will take the final step in approving the city’s $40 million settlement agreement with its former auditors and bank it blamed for the Rita Crundwell theft.

The City Council is expected to give final approval during a special meeting at 6:30 p.m. in the second-floor council chambers, 121 W. Second St.

The out-of-court agreement was approved Oct. 7, but had to be placed on file for public review for at least 7 days.

Of the $40 million, $35.15 million was paid by CliftonLarsonAllen, the city’s auditor until 2005; $3.85 million by Fifth Third Bank, which handled the city’s checking accounts; and $1 million by Janis Card and Associates of Sterling, which took over the city’s audits in 2005 from Clifton until Crundwell’s arrest.

Mayor Jim Burke said he will know by Tuesday if this finalizes the settlement to the point where public officials will be allowed to answer questions about the Crundwell theft.

Burke, at Thursday’s town hall meeting to discuss the settlement money, said that the City Council has been under disclosure restraints regarding the Crundwell incident.

Questions will not be addressed until everything is “signed, sealed and delivered” involving all parties, he said.

No discussion of how to budget the settlement money will be conducted during Tuesday’s meeting.

Finance Director Paula Meyer gave her recommendations for paying down debt, setting aside a cash reserve and tackling sewer projects. Residents also voiced their opinions.

The City Council will talk about its options for using the money during its strategic planning sessions after a city administrator is hired.

Also, Tuesday’s special meeting agenda includes an executive session. The council will meet behind closed doors to discuss a job candidate, said Police Chief Danny Langloss, special assistant to the council.

A final candidate for city administrator was selected by a committee and that candidate visited City Hall last Wednesday, Langloss said at the town hall meeting.

The City Council is hoping to take a final vote to hire the candidate at its Nov. 4 meeting.

The next step is to conduct a thorough background check, similar to those given to police officers, Langloss said last week.

After the check is conducted, the candidate will be introduced in a meet and greet with the public before the council votes.

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