Voter revolt? City of Greenfield digs itself deeper

Greenfield wants a divorce -- from its City Council and possibly from itself.

Angry that their city will soon be without liability insurance, about 200 residents out of a population of 2,900 gathered at the new City Hall demanding to know who is to blame for the situation and asking what can be done about it.

"We can argue all we want," said resident Michael McMillan. "We elected them and now we're stuck with them. ... I just don't want the liability problem."

Among the questions McMillan and others asked City Attorney Scott Riggs on Tuesday night is whether they can recall the current council (no) and whether they can disband the city and incorporate a new one.

Maybe, said Riggs, who noted that dissolving would require action by the state Legislature and would not address the issues the League of Minnesota Cities Insurance Trust raised when it voted last week to cancel the city's insurance.

"They want to see the city change how it does things," he said during the meeting.

Riggs also said he did not have an answer when someone asked whether the loss of insurance will prevent police and fire department personnel from entering the city to help for fear of liability concerns.

The council was supposed to meet Tuesday night. But the three-member council majority at the heart of the controversy either did not show up or did not stick around after another meeting in the same room in the same building earlier in the evening.

So there was no quorum and thus no official meeting to talk about fixing the insurance problem, said Council Member Michael Erickson, one of two members who did attend the session.

"Everybody knew about the meeting," Erickson told the angry group of city residents. "They don't want to be here to answer your questions. I think that's real unfortunate."

Krout, who chose not to attend the meeting, said she stayed away because she did not think much would be accomplished.

"The meeting organizers wanted a circus, not to handle business," Krout said. "Insurance will be addressed at our council meeting [to]night."

Citing increased risk, political bickering and even possible open-meeting law violations, the league took the extraordinary step last week of eliminating insurance coverage for Greenfield, a western Hennepin County city. The move came after another round of controversial actions in Greenfield, centering on the firing of Jim Willis, an interim city administrator who was recommended by the league as someone who could help the city straighten itself out.

Instead, Krout and two other members fired Willis -- even after he had resigned. Krout, at the same meeting, said Willis had been acting in a "threatening" manner toward her. She did not elaborate.

That was enough of a red flag to have the league board of trustees debate the costs and benefits of keeping Greenfield covered. The league had paid out more than $800,000 in claims for the city in recent years while taking in about $100,000 in premiums from Greenfield.

Last summer, after months of more bickering, including allegations that City Council members might be carrying concealed weapons to meetings, the league increased Greenfield's deductible from $500 to $200,000. That could have a major impact on a city with an annual budget of just $1.1 million.

"What happened with the league didn't have to happen," Erickson said, blasting the council majority.

That was the general consensus at Tuesday's meeting, as numerous residents questioned the wisdom of the council and its ability to lead the city.

"The last five years have been, frankly, a nightmare," McMillan told Erickson, drawing applause from the audience. "If this was a private company, you'd all be fired."

Many residents asked what can be done to oust the council majority. The short answer is nothing. The only possibility of change is if one or all three resigned from the council, according to Riggs.

"My opinion is we have to tough it out until [the election in] November 2010," said Jerry Hertaus, who ran against Krout for mayor in 2008 and lost.

Although the city is looking for new insurance coverage, that will come at an exorbitant cost, according to Larry Larson, an insurance agent who is looking into the matter for the city.

"Google Greenfield," said Larson, who estimated new insurance coverage could cost anywhere from $30,000 a year to as much as $150,000. "We have a history in this city that is nationally known."

Heron Marquez Estrada • 612-673-4280