08-10-09-TCAAP WS - Laserfiche WebLink

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ARDEN HILLS CITY COUNCIL TCAAP WORK SESSION-AUGUST 10, 2009 5 Mayor Harpstead was encouraged by the Council's direction to resolve the dispute quickly, informally and as expeditiously as possible. He noted that a lack of cooperation from Ryan Companies could then trigger Section 23 at a future work session meeting. Councilmember Grant read from the PDA, Section 5, Item E stating City reimbursable costs are also payable as an offset against the returned earnest money, and developer reimbursable costs are described in Section 12B3. Attorney Bubul encouraged the Council to approve the escrow agreement as it would be in the City's best interests. Councilmember Grant questioned if the developer set up an escrow account which they were placing money into as noted within the PDA; and if not what steps could be taken due to the fact Ryan Companies did not follow the agreement. Finance Director Iverson stated she was not aware of this type of an account. Councilmember Grant asked if the City has been at fault within the PDA for not promptly submitting bills to Ryan Companies in a timely manner, and if so it should have triggered $50,000 increments of funds to be placed into an escrow account by RLLD. City Administrator Moorse indicated bills were withheld from January 1 to March 23, 2009. Finance Director Iverson explained that bills were sent to Ryan Companies quarterly. She stated that she was in contact with Eric Anderson to resolve past problems with billing concerns. Councilmember Grant stated the City should have followed their part of the PDA so as not to be in fault at this time and questioned what happened at a staff level. City Administrator Moorse indicated the escrow agreement never got set up, no funds were put into it and the City began billing Ryan Companies who began paying the bills. Councilmember Holmes expressed concern that the Council was not informed that Ryan Companies had not been paying their bills for almost an entire year.