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AGENDA ITEM REVIEW FORM |
12.
Regular City Council Meeting
- Meeting Date:
- 08/25/2021
- Department Head:
- Kay Macuil
- Submitted By:
- Kay Macuil, City Attorney, Attorney's Office
Action Requested:
Motion
ITEM:
DISCUSSION AND POSSIBLE ACTION ITEM:
Discussion and possible action on any and all matters regarding approval and ratification to engage outside counsel and to take all actions necessary to resolve current state law, city code violations and breaches of the lease with the City of San Luis by Advanced Call Center Technologies, Inc.; including without limitation settlement, mediation, arbitration and/or litigation. (Kay Marion Macuil, City Attorney)
Discussion and possible action on any and all matters regarding approval and ratification to engage outside counsel and to take all actions necessary to resolve current state law, city code violations and breaches of the lease with the City of San Luis by Advanced Call Center Technologies, Inc.; including without limitation settlement, mediation, arbitration and/or litigation. (Kay Marion Macuil, City Attorney)
SUMMARY:
It came to the attention of city staff that Advanced Call Center Technologies (ACCT) made installations of air conditioning units on the roof, improper connections to electric power, and built partitions inside without building permits or city permission as the landlord. This work was done in violation of both state statutes and city ordinances. The installations on the roof appear to vitiate the 20-year warranty that the City received after spending over a million dollars on the new roof. Inspections have found other problems within the areas occupied by ACCT.
The City, through outside counsel, sent a letter pursuant to the terms of the lease asking for information and that all breaches of the lease be cured within 30 days pursuant to the terms of the lease. The responding letter from ACCT does not demonstrate any willingness to either provide the requested information or cure the breaches of the lease.
The staff seeks authority from Council to pursue appropriate legal remedies to have the building be safe for those who use and occupy the structure and to remedy the damages incurred by the City due to illegal conduct.
Under the City Attorney's purchasing authority, Outside Council Scott Holcomb was engaged to assist with a 30-day notice letter to ACCT. Scott is part of a national law firm and is also the City Attorney for Queen Creek. He has vast experience in municipal law, real property law, commercial law and construction law. These are all areas of law implicated by the situation with ACCT.
Staff is seeking ratification and approval for Scott to represent the city in this matter and to authorize all actions necessary to remedy the situation.
The City, through outside counsel, sent a letter pursuant to the terms of the lease asking for information and that all breaches of the lease be cured within 30 days pursuant to the terms of the lease. The responding letter from ACCT does not demonstrate any willingness to either provide the requested information or cure the breaches of the lease.
The staff seeks authority from Council to pursue appropriate legal remedies to have the building be safe for those who use and occupy the structure and to remedy the damages incurred by the City due to illegal conduct.
Under the City Attorney's purchasing authority, Outside Council Scott Holcomb was engaged to assist with a 30-day notice letter to ACCT. Scott is part of a national law firm and is also the City Attorney for Queen Creek. He has vast experience in municipal law, real property law, commercial law and construction law. These are all areas of law implicated by the situation with ACCT.
Staff is seeking ratification and approval for Scott to represent the city in this matter and to authorize all actions necessary to remedy the situation.
RECOMMENDATION / SUGGESTED MOTION:
I MOVE TO RATIFY AND APPROVE THE ENGAGEMENT OF THE LAW FIRM DICKINSON WRIGHT TO REPRESENT THE CITY REGARDING ADVANCED CALL CENTER TECHNOLOGIES, LLC BREACHES AND ITS AND OTHER PEOPLE OR ENTITIES VIOLATIONS OF LAW;
AND I MOVE TO AUTHORIZE THE CITY MANAGER, THE OFFICE OF THE CITY ATTORNEY AND OUTSIDE LEGAL COUNSEL TO TAKE ALL ACTIONS NECESSARY TO RESOLVE CURRENT VIOLATIONS OF LAW AND BREACHES OF THE LEASE OF THE COMMERCIAL SPACE AT 580 NORTH SAN LUIS PLAZA DRIVE, SAN LUIS, ARIZONA, INCLUDING WITHOUT LIMITATION, SETTLEMENT, MEDIATION, ARBITRATION AND/OR LITIGATION.
AND I MOVE TO AUTHORIZE THE CITY MANAGER, THE OFFICE OF THE CITY ATTORNEY AND OUTSIDE LEGAL COUNSEL TO TAKE ALL ACTIONS NECESSARY TO RESOLVE CURRENT VIOLATIONS OF LAW AND BREACHES OF THE LEASE OF THE COMMERCIAL SPACE AT 580 NORTH SAN LUIS PLAZA DRIVE, SAN LUIS, ARIZONA, INCLUDING WITHOUT LIMITATION, SETTLEMENT, MEDIATION, ARBITRATION AND/OR LITIGATION.
Fiscal Impact
- IS THERE FISCAL IMPACT ASSOCIATED WITH THIS ITEM:
- Yes
- CITY/STATE/FEDERAL FUNDS:
- City
- TOTAL:
- Unknown
- BUDGETED AMOUNT:
- 7,000
- AVAILABLE AMOUNT TO TRANSFER:
- N/A
- ACCT NAME & GL#/REMAINING BALANCE BEFORE PURCHASE:
- 100-117-80003 Legal Services $19,330.75FY 2020
FISCAL IMPACT STATEMENT (IF THIS IS A BUDGET TRANSFER, YOU MUST ATTACH THE BUDGET ADJUSTMENT FORM):
There is $7,000 in the City Attorney's Legal Services Budget.