08-10-09-TCAAP WS - Laserfiche WebLink

Home Browse Search

ARDEN HILLS CITY COUNCIL TCAAP WORK SESSION-AUGUST 10, 2009 4 Councilmember Holden expressed concern on the lack of information on the payments which were and were not made. Finance Director Iverson reviewed the items within the handouts which were paid and outlined which were still being disputed, over budget and unpaid. Attorney Filla stated Section 23 says that if there is a dispute either party can give notice and complete the process within 30 days. However, at the end of 30 days if the issues have not been worked out, the parties were free to do something else. Councilmember Holden expressed concern about the escrow agreement as Ryan Companies was not responding to the City's requests for a meeting. She indicated she would not be in favor of the escrow account until she knew they were willing to support it, due to the 30-day time limit. Mayor Harpstead questioned if the escrow agreement would strengthen the City's position or weaken it. Attorney Bubul stated it would strengthen the City's position as it would ensure that the City can appropriately hang onto this money and not return it until both parties reach a resolution. He explained that if the City moves towards mediation, the escrow agreement would assist in this process by having a neutral party handle the funds. Mayor Harpstead indicated the escrow agreement would show the City's best efforts to resolve this dispute. Councilmember McClung stated he was concerned the City was not hearing back from Ryan Companies and that he was in favor of putting the funds into escrow as it put the City into the strongest position possible. He questioned how the City should proceed to move this along quickly. Attorney Filla explained that he could make contact with Ryan Companies but that there would be costs associated. City Administrator Moorse indicated he has discussed with Ryan the advantages of beginning with an informal resolution process. Further discussion ensued regarding the next steps that should be taken by the Council with Ryan Companies.