Newly disclosed minutes from closed sessions hint at city business deals

Dec. 18--A special Board of Aldermen meeting Tuesday evening was conducted behind closed doors.

This was the first specially called meeting by the new board. Two aldermen, Jeffery Odham and Victor Taylor, were absent.

The notice of the meeting said its purpose was "Duke Progress merger intervention and adjourn." There was no mention of a closed-door session, which lasted from 5:36 to 7:16 p.m. No action was taken when the board reconvened in open session to adjourn. There was only one citizen in attendance.

The minutes from 16 New Bern Board of Aldermen meetings released before the new board was sworn in Dec. 10 shows little of what went on behind closed doors for the past two years.

Scott Davis, city attorney, said the minutes from two other sessions will remain sealed.

The minutes, which are required to be made public through the state's Open Meetings Law once they are voted on, are brief, with no explanations and no discussion in the closed-door sessions dated from Jan. 10, 2012, to Oct. 22, 2013.

On Jan. 10, 2012, the board went behind closed doors at 5 p.m. to have a conference call with John Coyle and White Russell, attorneys handling the city's intervention into the Progress Energy and Duke Energy merger.

The two attorneys provided the board with an update of the city's intervention and their recent conference call with Rocky Mount, minutes show.

Rocky Mount partnered with New Bern in the intervention.

"John Coyle advised the staff put together a budget for the next phase of the intervention and provide it to the city manager," minutes say. "The BOA directed the city attorney to contact Rocky Mount's city attorney to discuss possible settlement methodologies."

The closed session ended at 6:30 p.m.

On June 26, 2012, the board went into a closed session at 7:15 p.m. during a work session to hear another update from Coyle about the intervention.

Coyle advised the board "that in his opinion the FERC (Federal Energy Regulatory Commission) made a significant legal error in failing to make a critical finding in its written decision," minutes show.

Coyle suggested a request for a rehearing to FERC would be required to preserve the city's appeal, according to the minutes.

The "request for rehearing would not exceed the sum of $15,000 which would be equally divided between the city and Rocky Mount assuming that both parties wanted to move forward with the request."

They did and they were able to temporarily stall the merger.

The closed door meeting lasted until 7:40 p.m.

On July 24, 2012, aldermen went into a closed session at 7:55 p.m. for anther update of the Duke/Progress merger.

"The city manager provided the board with an update on the intervention in the proposed merger between Duke Energy and Progress Energy," was all the minutes said. The time at which they went back into open session was not recorded.

On Nov. 13, 2012, the board went into closed session at 8:30 p.m. to discuss legal matters concerning the Duke/Progress intervention and an offer to purchase Kale Road property, minutes show.

The board also discussed the performance evaluation for the city manager, according to the minutes.

The meeting was adjourned at 9:30 p.m.

On Jan. 8, 2013, a closed session was called at 8:55 p.m. to discuss a lawsuit filed by Robert Raynor, the former alderman who sued the city when the board terminated health insurance for life that had been approved by the former board for eligible aldermen.

During that meeting, the city manager provided the board with a brief update on the status of the intervention in the Duke/Progress merger, minutes show.

Also, the city attorney provided the board with several recommendations regarding an attorney qualified to defend the city in Raynor's lawsuit. Those recommendations were not in the minutes.

The closed session ended at 9:10 p.m.

On Jan. 22, 2013, the board went into closed session at 9:15 p.m.

"The Board of Aldermen discussed retaining an attorney qualified to defend the city in the lawsuit filed by Robert Raynor," minutes show. "The mayor and Alderman (Sabrina) Bengel advised they were considering prospects."

The city attorney "advised that his primary concern was ensuring that the complaint was answered by February 19, 2013."

The meeting was over by 9:20 p.m.

On June 25, 2013, the board went into closed session at 8:05 p.m., and the city attorney advised aldermen that "in the matter of Raynor vs. City of New Bern, the city's motion to dismiss scheduled for the end of May was continued to early August."

During that closed session, the city manager, who was directed by the board during a retreat to explore the possibility of acquiring the marina located at the Hilton, reported he had talked to the property owner and the broker and was told they wanted in excess of $4 million for the marina, according to the minutes.

The board "directed the city manager to stay in communication with the lender (title holder) and any possible buyers regarding the possibility of a public/private partnership regarding the marina," minutes say.

The board also discussed buying the empty Days Inn Hotel during the closed session.

The city manager told the board the owner owes the city and county about $150,000 in back taxes and he recommended foreclosure to collect, according to the minutes.

"The manager advised he would communicate with the county since there would have to be a certain level of coordination given the taxes owed to both entities," minutes show.

On July 9, 2013, there was more discussion about the marina during a 7:50 p.m. closed session.

"The city manager reported he spoke with the real estate broker who is listing the Hilton Marina, advising the city's interest in speaking with any interested buyers regarding the possibility of public/private partnerships," minutes show. "The city manager also advised that the prospective buyer from the mid-west is no longer interested in the marina."

The city manager also reported that Weyerhaeuser asked him to sign a nondisclosure agreement so that a prospective company that is considering locating in New Bern Craven Thirty could speak with him about issues with the assurance the discussions would remain confidential.

"The terms of the nondisclosure agreement would preclude the city manager from discussing the matter with any board members," minutes say.

If the company chooses to locate in New Bern, an official announcement would be made well in advance of its arrival, the city manager said.

The city manager also updated the board on possible tax foreclosure action against the owners of the Days Inn Hotel to collect back property taxes, minutes show.

The meeting was adjoined at 8 p.m.

On Aug. 13, 2013, the board again was updated on Raynor vs. City of New Bern.

"The city attorney advised the board that in the matter of Raynor vs. City of New Bern, the city's motion to dismiss was heard on August 5, 2013, and that counsel was waiting for a decision from the court," minutes say.

The meeting was adjourned at 8:40 p.m.

On Oct. 22, 2013, the city attorney updated the board in a closed session that started at 7:50 p.m. about the Raynor lawsuit against the city as requested by Sean Partrick, the city's counsel in the matter, minutes say, but do not reveal what was discussed.

Davis said Tuesday the city's request to dismiss Raynor's lawsuit was granted by the court, but Raynor is now appealing that decision through the Court of Appeals.

During the Oct. 22 closed session, the board also directed the city manager to see if the city could acquire the Z dock of the New Bern Grand Marina, "subject to conditions to be determined at a later date," for the sum of $40,000.

The city attorney also gave an update on the status of foreclosure on the Days Inn Hotel and options to pursue a tax foreclosure on the property. No additional information was provided in the minutes.

Several of the other closed session minutes unsealed showed the board discussing and settling workers' compensation claims against the city, performance evaluations of the city manager, an update on legal issues concerning a lawsuit from six citizens against the city over proposed townhouse construction at the corner of Broad and East Front streets and a mention of a Feb. 14, 2012, discussion about selling the city's Kale Road property.

Eddie Fitzgerald can be reached at 252-635-5675 or at eddie.fitzgerald@newbernsj.com. Follow him on Twitter @staffwriter3.

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