11-30-09-TCAAP - Laserfiche WebLink

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ARDEN HILLS CITY COUNCIL TCAAP WORK SESSION-NOVEMBER 30, 2009 9 B. TCAAP Reimbursables Update (continued) Councilmember Holden questioned if the City was entering into binding or unbinding mediation. City Attorney Filla stated the contract defined a non-binding mediation. Councilmember Holmes asked if the agreement would then proceed to arbitration and then litigation. City Attorney Filla indicated the City would complete the non-binding mediation. Unless both partners agreed to enter arbitration, the next step would be litigation. He stated it was his impression that most of what was done after January of 2009 was done in accordance with the scope of activities defined within the PDA and January memo. Councilmember Holmes questioned if the City would be responsible for the overage. City Attorney Filla stated he hasn't conceded this but that the Ryan's strongest argument at this time was that anything over should be covered by the City. Councilmember Holmes indicated the City was willing to go up to the $75,000 and questioned if the City should set up additional parameters before entering into the non-binding mediation. City Attorney Filla stated the Council should establish some authority for those completing the mediation. Councilmember Holden questioned what the next step was after the non-binding mediation and asked the costs associated with each step. City Attorney Filla explained if the Council was not happy with the results, either party could commence litigation. The current agreement describes eight hours of non-binding mediation, which was $300 per hour split between both parties. He felt that the City would not have to go through detailed preparation for binding mediation or arbitration if warranted. The only benefit of arbitration would be the lag time but stated this was binding.