Loading...
CC 2016-01-12_09e Funding for GLR Agreement MEMORANDUM TO: CITY COUNCIL FROM: DEBBIE MALICOAT, DIRECTOR OF ADMINISTRATIVE SERVICES SUBJECT: APPROPRIATION OF FUNDING FOR SETTLEMENT AGREEMENT WITH GLR CONSTRUCTION DATE: JANUARY 12, 2016 RECOMMENDATION: It is recommended the City Council authorize the City Manager to execute a mutual release and settlement agreement with GLR Construction and appropriate $109,700 from the Local Sales Tax Fund. IMPACT ON FINANCIAL AND PERSONNEL RESOURCES: The current, unallocated fund balance in the Local Sales Tax Fund is estimated at $645,000 before considering other requests pending Council approval on the January 12, 2016 agenda. If all requests are approved, an unallocated balance of approximately $307,000 will remain. BACKGROUND: The City Council has previously provided direction to staff regarding the negotiation of a settlement with GLR Construction related to claims made in connection with the Police Station capital improvement project. ANALYSIS OF ISSUES: The terms of the mutual release and settlement agreement are consistent with the direction previously provided by the City Council. ALTERNATIVES: The following alternatives are provided for City Council consideration: - Approve staff recommendation - Do not approve staff recommendation and request further information; - Modify staff recommendation and approve; - Provide direction to staff. ADVANTAGES: By appropriating funding and authorizing the City Manager to execute the negotiated settlement, the City can resolve the disputed claims without further expenditure of staff or attorney time. Item 9.e. - Page 1 CITY COUNCIL APPROPRIATION OF FUNDING FOR SETTLEMENT AGREEMENT WITH GLR CONSTRUCTION JANUARY 12, 2016 PAGE 2 DISADVANTAGES: There are no identified disadvantages; resolution of the pending claim in the most cost effective and expeditious manner is desired. ENVIRONMENTAL REVIEW: No environmental review is required for this item. PUBLIC NOTIFICATION AND COMMENTS: The Agenda was posted in front of City Hall on Thursday, January 7, 2016. The agenda and report were posted on the City’s website on Friday, January 8, 2016. No public comments were received. Item 9.e. - Page 2