9.B.
City Council Meeting - FINAL
- Meeting Date:
- 01/21/2014
- From:
- Anja Wendel, Senior Assistant City Attorney AW
Information
TITLE:
Consideration and Approval of Settlement Agreement: Campus Crest at Flagstaff II, LLC (The Grove Phase I)
RECOMMENDED ACTION:
Approve Settlement Agreement with Campus Crest at Flagstaff II, LLC
Policy Decision or Reason for Action:
The City made errors in invoicing sewer capacity and other fees for multi-family residential developments. Following discovery of the errors, in May 2013, the City issued new invoices for amounts owed. In November 2013, the City Council authorized litigation to collect fees. Fees are still owed for two developments: The Grove Phase I and Flagstaff Senior Meadows. The City has reached a settlement in principle with the developer for The Grove Phase I, and a settlement agreement will be presented at the Council Meeting. City staff is recommending approval.
Subsidiary Decisions Points: The City has a development agreement for the The Grove Phase I, which requires the parties to engage in settlement efforts and non-binding mediation before commencing litigation.
Subsidiary Decisions Points: The City has a development agreement for the The Grove Phase I, which requires the parties to engage in settlement efforts and non-binding mediation before commencing litigation.
Financial Impact:
The Settlement Agreement calls for the developer to pay 90% of the balance owed, which along with the original invoiced payment will result in almost full recovery of the applicable sewer capacity fees. City sewer capacity fees and development fees are established by City ordinance, based upon studies and following a public hearing. The fees help pay for infrastructure and services that benefit the developments and community.
Connection to Council Goal:
1. Repair Replace maintain infrastructure (streets & utilities)
11. Effective governance
Has There Been Previous Council Decision on This:
The City Council has received legal advice and considered settlement offers in prior Executive Sessions.
Options and Alternatives:
1. Approve Settlement Agreement with Campus Crest at Flagstaff II, LLC. (The Grove Phase I)
Pros: The City will recoup approximately 90% of the balance owed and avoid the time and expense of litigation.
Cons: The City will relinquish certain rights and waive 10% of the balance owed.
2. Do not approve Settlement Agreement and proceed with litigation.
Pros: The City may be able to recover the entire amount owed.
Cons: The City will incur the time, risks, and expense of litigation. The City may recover less than 90% of the amount owed.
Pros: The City will recoup approximately 90% of the balance owed and avoid the time and expense of litigation.
Cons: The City will relinquish certain rights and waive 10% of the balance owed.
2. Do not approve Settlement Agreement and proceed with litigation.
Pros: The City may be able to recover the entire amount owed.
Cons: The City will incur the time, risks, and expense of litigation. The City may recover less than 90% of the amount owed.
Key Considerations:
The City has a fiscal responsibility to ensure fees are collected, and that all developments pay their fair share of City infrastructure and services.
Community Benefits and Considerations:
The Flagstaff community through the City's elected officials has approved the fees for developments.
Community Involvement:
Inform
Attachments
No file(s) attached.