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Motion carried. Voting Yes: Chairperson Backous, Commissioners Tossey, Riley, Kuzma, LeTourneau, and Strommen Voting No: None. 5.02: Proposal for Mechanic's Lien Settlement Regarding Landform COR II Claims Executive Director Ulrich reviewed the staff report and presented the list of outstanding COR II invoices totaling $34,732.25. He stated the Council Landform Subcommittee comprised of Members Backous, Riley and Strommen met with the City /HRA attorneys and staff and agreed on an approach to negotiate this dispute. It was noted that the contractor offered a 5% discount, or $1,500, resulting in a full and final payment on all open non - incentive invoices in the amount of $33,232. Executive Director Ulrich explained these costs were the result of additional professional work required beyond the specific contract to file the plat as directed by the HRA, which includes surveys and other work to complete filing of the plat. Chairperson Backous noted the HRA had withheld some payments pending verification of HRA approvals, which were not documented in its meeting minutes. Executive Director Ulrich stated the work was completed and necessary to file the plats and action tonight would authorize those actions and final payment. City Attorney Goodrich stated the work was not authorized and there are factual issues on that with previous City employees and the contractor; however, it would take some time to get down to preciseness. Chairperson Backous noted Landform is saying they received approval from former employees or that the work was not specifically approved but necessary to complete the work that was approved. City Attorney Goodrich stated Landform is saying they received verbal authorization from staff and the City. If in court, the City would have a lot to say about that. He explained HRA/City Council approval is required but, on the other hand, if Landform has completed the work and the City has benefited, that will be considered by a court as well. City Attorney Goodrich stated the City needs to make certain that contractors do not have the impression that the City casually pays for unauthorized work because that is not the case. Commissioner Strommen asked about the timing, should this settlement be approved, for release of the lien and filing of the plat. City Attorney Goodrich advised that in return for payment, the City will satisfy the lien so the City will file the satisfaction and then file the plat. He stated a written agreement will be drafted stating those issues and that the City also wants its intellectual property. Commissioner Strommen stated this will then be final. City Attorney Goodrich advised it will be final except for the incentive compensation. Housing and Redevelopment Authority / May 28, 2013 Page 4 of 5