Laserfiche WebLink
<br /> <br />MEMORANDUM <br /> <br />Item 1.E <br /> <br />DA TE: <br /> <br />July 20, 2009 <br /> <br />TO: <br /> <br />Mayor and City Council <br /> <br />FROM: <br /> <br />Ron Moorse, City Administrator <br /> <br />SUBJECT: <br /> <br />TCAAP Reimbursable Expenditures <br /> <br />BACKGROUND <br /> <br />The Preliminary Development Agreement provided for the reimbursement, by RRLD, of City <br />expenditures related to the negotiated sale of the TCAAP property. The PDA included a budget <br />amount of $992,000 for the reimbursable expenditures. The budget was divided into categories <br />for the various consultant services and other expenses. Beginning in 2007, reimbursable <br />expenses were billed to RRLD on a bi-monthly basis, and were paid regularly by RRLD. <br /> <br />RRLD challenged a significant amount of the expenditures included in the June and August, <br />2008 billings. The majority of the challenged expenditures were resolved, but approximately <br />$7,000 from each billing remained in dispute, and $56,500 not in dispute remained unpaid. The <br />next billing, in the amount of$251,190.42, dated 12/31/08, was prepared but retained as the <br />disputes remained unresolved. This billing, along with a March billing in the amount of <br />$68,268.17, was sent to RRLD on March 23, 2009. A billing of $546.98 was sent to RRLD on <br />4/20/09. The final bill was sent to RRLD on June 26, 2009, in the amount of$109,144.40. The <br />amount of the billings remaining unpaid is $500,414.68. <br /> <br />RRLD has provided a letter objecting to a number of invoice items based on whether they match <br />the types of expenditures anticipated by the PDA. RRLD has also provided a letter objecting to <br />invoice items based on the items exceeding the specific budget for the category of expenses, <br />even though the expenses did not cause the overall PDA budget to be exceeded. Both of these <br />letters are attached. I have responded to the initial letter with information to show that the <br />expenditures did match the expenditures anticipated by the PDA. I have also attached our <br />internal PDA Budget vs. Actual tracking sheet. <br /> <br />Steve Bubul and I have indicated to RRLD that the objection based on expenses exceeding <br />budget category amounts is not valid for two reasons. First, while the PDA calls for the City to <br />notify RRLD if individual budget categories will be exceeded, it only gives RRLD the ability to <br />