11-30-09-TCAAP - Laserfiche WebLink

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ARDEN HILLS CITY COUNCIL TCAAP WORK SESSION-NOVEMBER 30 2009 10 B. TCAAP Reimbursables Update (continued) City Attorney Filla suggested the City go into the non-binding mediation in hopes of resolving the issues at hand as both parties were not far from agreement. The - alternative was much more expensive and would eat into the spread. Councilmember Holden asked what would happen if the parties could not reach an agreement within the non-binding mediation, and if the City would go into binding mediation. City Attorney Filla stated the City could sue Ryan or more likely Ryan would sue the City of Arden Hills if an agreement could not be reached. He indicated the City could only begin binding mediation if both parties agreed to amend the existing agreement. It was explained that arbitration or litigation would quickly consume the spread when divided between the two parties as this was a cumbersome process and would involve highly paid attorneys. Mayor Harpstead indicated as the City prepares for non-binding mediation if this was a closed meeting. City Attorney Filla stated this was the case, as the open meeting law allowed him to have closed meetings with his clients to discuss pending or current litigation. Mayor Harpstead explained that he did not want to see the Council establish terms at tonight's meeting but that such a meeting should be held before the mediation to empower the individual representing the City of Arden Hills. City Attorney Filla felt this was an excellent suggestion. Councilmember Holden asked that staff speak with Ryan Companies one last time to hopefully eliminate the need to spend $5,000 on non-binding mediation. City Attorney Filla indicated this would be a good approach, as it would signal the City is ready to take the next step. Councilmember McClung had a discussion with Rick Collins after the TCAAP bidder's conference to greater understand Ryan's thinking. He stated he heard a bottom line number and felt the City should make another offer close this number and get the issue off the table.