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ARDEN HILLS CITY COUNCIL WORK SESSION-JULY 20, 2009 22 Finance Director Iverson stated this was the initial amount but that the City needs to subtract $777.00 from that amount as a mistake was made on one bill. She indicated the final amount being disputed would be $499,644.68. The Council was in agreement that the money should not be placed in an escrow account. They felt that was not a superior solution to this situation. Mayor Harpstead suggested the disputed amount be placed in an escrow account with the remainder kept by the City. City Administrator Moorse noted the RLLD was stating the City was over budget on a number of these items, which would affect the amount disputed. Councilmember McClung showed $136,546.59 over budget from Spencer Fane Britt & Brown, along with $9,255 from Ehlers for project management, $16,317.91 for engineering services and $110,705.61 from Ehlers for financial services. Councilmember Grant stated that the City would stand in a better position if the funds were accessible by the City, where it can earn interest and be treated as an escrow account while negotiations continue with RLLD. He indicated that if the City gave up possession of the money, the City would lose a strong negotiating position as well Mayor Harpstead agreed stating he would like the City's attorney advise the Council on this issue as well. Councilmember Holmes stated she would not like the funds placed in an escrow account unless advised by the City Attorney. She felt the City needed to dispute or justify these numbers and that it should not be left up to lawyers. Mayor Harpstead explained that he would be more comfortable with a lawyer being involved in this issue due to the fact the differences were sizeable. He indicated that completely ignoring legal advice would not be wise for the City. Councilmember Holmes indicated that the City should be able to provide the level of detail requested on the billing statements without needing to involve legal representatives. She added that if lawyers were going to be involved, the City use its own attorney.