03-26-07 Item 4E, Additional Funds for City Hall

Home Browse Search

~ ~~HILLS MEMORANDUM DATE: March 20, 2007 AGENDA ITEM: 4E TO: Mayor and City Council FROM: Michelle Wolfe, City Administrator SUBJECT: Additional Legal Services Related to the City Hall Arbitration Case BACKGROUND The City of Arden Hills is scheduled to enter into an arbitration hearing in June 2007. This arbitration concerns the still-open contract for the construction of the Arden Hills City Hall. During the summer of 2003, the City participated in a mediation process with the General Contractor, Rochon, in order to try and settle the dispute. We had another attempt at mediation in November 2006. The mediation process has not been successful thus far, so the arbitration has been scheduled. However, in the mean time, another mediation session has been scheduled for April 30, 2007. DISCUSSION In May 2006, the City Council authorized staff to retain the services ofMr. Jeffrey W. Coleman as an attorney for the City Hall arbitration case. At that time, Council authorized $50,000. The City Council authorized an additional $30,000 at the January 29,2007 meeting. At that time I indicated to Council that we would need to authorize additional funds as we worked toward the arbitration hearing. The City has paid a total of $80,323.62 to-date for the legal services of Jeffrey Coleman. Mr. Coleman estimates approximately $13,500 will be needed to prepare for the April 30 mediation. At this time staff recommends authorization of up to $15,000 in additional legal services from Mr. Coleman. After April 30, we will work with Mr. Coleman to estimate what will be needed as we progress to arbitration. RECOMMENDATION Motion to authorize additional funds for the legal services of Mr. Jeffrey W. Coleman for the City Hall Arbitration case, at a rate of$250 per hour, in the amount of$15,000. MW Ilmetro-inetlardenhillslAdminlCity AdministratorIMemoI200713-26-07 Memo RE City Hall Attny fees. doc