Loveland sued over Troy Krenning's election to City Council prior to Centerra South vote

A third lawsuit has been filed against the city of Loveland for actions related to the November election and immediately after the new city council was seated.

On Friday, Peter Gazlay, who supported council candidate Dan Anderson for the Ward 1 council seat, filed a lawsuit in Loveland Municipal Court claiming Anderson's opponent Troy Krenning violated city regulations when he declined a background check required of all candidates and that the city breached its fiduciary duties when it allowed Krenning to run.

Anderson finished second to Krenning with 36% of the vote to Krenning's 43%.

The lawsuit asks the court for a declaratory judgment on whether Krenning was a valid candidate and seeks an injunction preventing Krenning from participating in any further council action until the issue is resolved. It also requests all council decisions since Nov. 21 where Krenning's vote was a deciding vote be voided.

Even if Gazlay's suit is successful and Krenning's votes are voided, it would not affect council's decision to rescind approval of Centerra South's master plan and financing agreement. Those votes passed 6-2 and 5-3 respectively.

According to the lawsuit filed by Gazlay's attorney, Russell Sinnett, an 83-page packet sent by the city to all candidates requires background checks to ensure "no person who has been convicted of financial crimes, bribery or perjury, or willfully violated the city's charter" is elected as mayor or council member.

The background check is to be done before the city clerk accepts the nomination form from a candidate, according to the lawsuit. In an email sent to the city clerk and all other candidates, Krenning declined to consent to the background check.

Krenning, an attorney, said he had previously had his identity and personnel records stolen while working at the U.S. Department of Justice; was cautious about handing over sensitive, confidential information; and had no confidence in the city's ability to safeguard his personal information, Sinnett said in the lawsuit.

City Clerk Delynn Coldiron asked Krenning to reconsider, which he declined.

On advice from the city attorney, Loveland hired a different company to conduct a background check without Krenning's permission. Krenning then provided copies of a background check conducted by the Colorado Bureau of Investigation, but the city did not accept the report because there was no valid certification of the record.

While most new council members were sworn in Nov. 14, Krenning was not sworn in until Nov. 21. By then, the background check had deemed he was "clear."

Because he declined the background check, the lawsuit claims he was not a viable candidate and should be removed and Anderson seated.

During the Nov. 21 City Council meeting, Krenning began asking questions of City Attorney Moses Garcia "in defense of allegations that Krenning's candidacy was invalid because of the lack of background check ... and asked about the city's authority to conduct a background check and sought an admission from the city attorney that the term 'background check' is not included in the charter," the lawsuit states.

Background checks are a requirement by the city, Garcia said at the meeting, and candidates "must act in good faith to complete it. ... The public would not find it acceptable if we did not do our job and make sure you're in compliance with the charter."

Later, Garcia said it is the practice of the city to perform background checks but there is not a written policy. That prompted Krenning to say: "All of this hysteria about me not complying with a background check seems to be just that, hysteria. I didn’t submit to background check, and yet here I am." He asked Garcia if he agreed the request of the city "is not grounded in any law, ordinance or charter and the others who submitted to it" were owed an apology.

"I do not agree," Garcia said.

Krenning has called for Garcia's resignation and led efforts to decrease his pay. Garcia plans to submit his resignation next week if council agrees to a separation agreement.

Prior to this lawsuit, Centerra developer McWhinney Inc. filed a lawsuit against the city of Loveland after City Council rescinded approval of its Centerra South development and the master financing agreement.

Larimer County District Court Judge Michelle Brinegar gave McWhinney and the city until Feb. 19 to file their responses to a request for summary judgment. Pending that decision, the court has scheduled a hearing Feb. 28 through March 1.

In the other lawsuit filed in Loveland Municipal Court, five former Loveland City Council members and three current residents filed suit against the city for reversing the Centerra South urban renewal development proposal and master financing plan in November.

The lawsuit alleges Loveland City Council — specifically Mayor Jacki Marsh and council members Krenning, Erin Black, Laura Light-Kovacs and Jon Mallo — violated their fiduciary responsibilities and citizens' rights to due process under the Loveland City Charter and the 14th Amendment to the U.S. Constitution when they overturned Centerra South.

Former council members Richard Ball, David Clark, John Fogle, Chauncey Taylor and Donald Overcash as well as residents Daniel Mills, Christy Taylor and Claire Haenny are seeking a declaratory judgment from the court prior to Feb. 29 — the day McWhinney will seek a permanent injunction nullifying council's reversal of its project.

This article originally appeared on Fort Collins Coloradoan: Loveland sued over candidate Troy Krenning's election to City Council