Todd Penske resigned from the Austin City Council Monday night.

Tuesday, December 07, 1999

Todd Penske resigned from the Austin City Council Monday night.

The Second Ward council member did so to avoid any appearance of a conflict of interest in a pending Cooperative Response Center land transaction with the city. Penske is president and chief executive officer of CRC.

In making his announcement Monday night, Penske said, "This is one of those few moments in life when it just hurts."

"Under the circumstances," Penske said, "it is the right thing to do."

CRC is a 7-year-old, not-for-profit, cooperatively structured business now located in a building at the intersection of Minnesota Highway 56 and Interstate 90 east of Austin.

It employs 52 workers, who provide 24-hour-a-day emergency call services to more than a million cooperative members in more than 25 states.

The firm expects to open another regional call center in the southeastern United States sometime in 2000.

CRC is negotiating with the city of Austin to acquire land for a new facility for its local operations.

The firm needs more space to conduct its growing operations and Penske said as many as 30 new jobs would be created locally when the firm expands to a new headquarters.

Because the Austin City Code requires a unanimous vote of all seven council members on issues involving such transactions, Penske could not simply abstain from voting on anything involving CRC, but had to resign from the council.

Penske said it was a "privilege and an honor" to serve the city of Austin for a year. "It pains me to have to do this," he concluded.

Mayor Bonnie Rietz expressed the city’s appreciation for Penske’s public service as a Second Ward council member and "for the personal sacrifice you are making."

First Ward council member Mickey Jorgenson, who also is a relatively new member of the council like Penske, said the first year is an "overwhelming experience."

Both Jorgenson and Rietz said they appreciated Penske’s competent and capable service on the council as well as his input.

According to Rietz, citizens may apply for the Second Ward council position beginning Thursday, when applications will be available at city administrative offices in the Municipal Building.

She expects the deadline for receiving applications will be Jan. 10, after which individual interviews will take place.

The new appointment is expected to be named at the Jan. 18 council meeting.

The person appointed by the mayor to fill Penske’s unexpired term will serve through Dec. 31, 2000, and then can decide whether or not to seek a full term on the council in the November 2000 election.