HomeMy WebLinkAbout30-01 RESOLUTION• •
RESOLUTION NO. 3d -Oi
A RESOLUTION AUTHORIZING PAYMENT"' OF
LOST PARKING SPACE REVENUE, FROM JULY 1
THROUGH DECEMBER 31, 2000, IN CONJUNCTION
WITH THE TOWN CENTER CONSTRUCTION TO
BEKKA DEVELOPMENT IN THE AMOUNT OF
$3,230.00 AND APPROVING A BUDGET ADJUSTMENT
OF $6,400.00
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
FAYETTEVILLE, ARKANSAS:
Section 1. That the City Council hereby authorizes payment of lost parking space
revenue from July 1 through December 31, 2000, in conjunction with the Town Center
construction to Bekka Development in the amount of $3 230.00. A copy of the invoice is
attached hereto marked Exhibit "A" and made a part hereof.
Section 2. That the City Council hereby approves a budget adjustment in the
amount of $6,400.00 to pay for the currently due $3,2300.00, plus future lost parking
space rental through the end of construction of the town center. A copy of the budget
adjustment is attached hereto marked as Exhibit "B" and made a part hereof.
PASSED AND APPROVED this (Q day of March, 2001.
By:
eather Woodruff, City Clerk
APPROVED:
By:
1
BEKKA. DEVELOPMIIT CO.
One West Mountain Street
Fayetteville, AR 72701
BILL TO
City of Fayetteville
113 W. Mountain
Fayetteville, AR 72701
Bekka Parking
4111 C. 8. Page 3
Invoice
DATE INVOICE NO.
2/21/2001: 2933
EXHIBIT A
m
2
gal
L
1
P.O. NO.
TERMS MONTH
Net on receipt 1
DESCRIPTION
AMOUNT
Unrecovered
parking
costs 7/00-12/00
3,230.00
Total
$3,230.00
m
2
gal
L
1
PARKING
COSTS FOR
32 SPACES
T $35.00 EACH
ACTUAL
COSTS
RECOVERED
$ 1,120.00 $1,120.00 $1,120.00
$ 450.00 $ 500.00 $ 475.00
UNRECOVERED
COSTS; I.E., $ 670.00 $ 620.00 $ 645.00
LOSSES
$1,120.00 $1,120.00
$ 705.00 $ 680.00
$ 415.00 $ 440.00
31,120.00 $ 6,720.00
$ 680.00 $ 3,490.00
$ 440.00 $ 3,230.00
Parking
age 4
411
BEKKA DEVELOPMENT CO.
PARKING PROFIT AND LOSS SCHEDULE
JULY 2000 through December 2000
•
DATE
JULY AUGUST SEPTEMBER OCTOBER NOVEMBER DECEMBER TOTAL
2000 2000 2000 2000 2000 2000
ea
•City of Fayetteville, Arkansas
Budget Adjustment Form
Bekka Parking
C. 8. Page 5
Budget Year
2001
Department:
Division:
Program:
General Government
Town Center Construction
Town Center Construction
Date Requested
March 6, 2001
Adjustment #
EXHIBIT 8
Project or Item Requested:
Funding of $11,776 for the settlement with
Bekka Development for legal fee
reimbursement and for parking space lost
revenue.
Project or Item Deleted:
None. Recognition of Interest income.
Justification of this Increase:
The request is to fund the claim submitted
by Bekka Development.
Justification of this Decrease:
Sufficient cash and investments
exist to fund this request.
Increase Expen e (Decrease Revenue)
Account Name Amount Account Number Project Number
Legal Services 8,546
5600 9600 5314 01
Rent 3,230 5600 9600 5308 00
Decrease Expense (Increase Revenue)
Account Name Amount Account Number Project Number
Interest -CMT -A&P Transf
11,776 5600 0960
6708 98
Approval Signatures
Requested By
Date
Budget Manager Date
Department Director
Admin. Services Director
Mayor
Date
Date
Date
Budget Office Use Only
Type: A B C
Date of Approval
Posted to General Ledger
Posted to Project Accounting
Entered in Category Log
E
Blue Copy: Budget & Research / Yellow Copy: Requester C: DATA'FORMSBA-AN BA OIOOJ.WKJ
Bekka Parking
C. 8. Page 6
4140
RESOLUTION NO. 85-00
A RESOLUTION AUTHORIZING PAYMENT OF LOST
PARKING SPACE REVENUE, THROUGH JUNE 2000, IN
CONJUNCTION\ WITH THE TOWN CENTER TO/BEKKA
DEVELOPMENT\IN THE AMOUNT OF $6,135.
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVTLLE,
ARKANSAS•
Section 1. That the City Council hereby authorizes payment of lost parking space
revenue, through June 2000, in conjunction with the Town Center to Bekka Development m the
amount of 56,135 A copy of the invoice isattached hereto marked Exhibit "A" and made a part
hereof.
APPROVED this 20th day
\ of June . 2000.
APPRO
I
/By:
a. .
ATTEST:
By:
eather Woodruff, City'Cler
•
•
NAME OF FILE- Resolution No. 30-01
CROSS REFERENCE: Resolution No. 85-00
03/06/01
Resolution No. 30-01
02/21/01
Exhibit "A" (Copy of Bekka Development Co. Invoice No. 2933)
03/06/01
Exhibit "B" (Copy of Budget Adjustment)
06/20/00
Copy of Resolution No. 85-00
02/22/01
Memo to City Council from Mayor Dan Coody regarding Bekka
Development Co. - Parking Cost
03/06/01
Staff Review Form
NOTES:
•
RESOLUTION NO. 85-00
MI CR 1:7,
A RESOLUTION AUTHORIZING PAYMENT OF LOST
PARKING: SPACE REVENUE, THROUGH JUNE 2000, IN
CONJUNCTION WITH THE TOWN CENTER TO BEKKA
DEVELOPMENT IN THE AMOUNT OF 36,135.
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE,
ARKANSAS:
Section 1. That the City Council hereby authorizes payment of lost 'parking space
revenue, through June 2000, in conjunction with the Town Center to Bekka Development in the
amount of 56,135. A copy of the invoice is attached hereto marked Exhibit "A" and made a part
hereof
AND APPROVED this 2,Qt day of June . 2000.
APPRO
KITES
By. �6i�� rd...
eather Woodruff ,City Cl
•
ekka Parking
. 8. Page 2
r ATEASLE
ITT OF FAYETTEVILLE, ARKANSAS
• .
To: City Council c.
Co
From: Mayor Dan Coody
Date: February 22, 2001
Subject: Bekka Development Co. - Parking Cost
Bekka Development Co. is requesting reimbursement for revenue shortfall on their rental parking
spaces. Their invoice number 2933, dated February 21, sets out the costs as follows:
Parking Costs - 7/00 thru 12/00 $3.230.00
City Council previously authonzed payment of parking cost to Bekka Development with resolution
number 85-00. This request is for authorization for the invoice presented and authorization to
reimburse for future invoices presented for parking revenue lost through June 30, 2001 or the
opening of the parking area in the Town Center set aside for Bekka Development whichever is later.
113 WEST MOUNTAIN 72701 601-21-7700
SO-
xx
AGENDA REQUEST
CONTRACT REVIEW
GRANT REVIEW
41/1! STAFF REVIEW FORM 9
For the Fayetteville City Council meeting of March 6, 2001
FROM:
Bekka Parking
C. 8. Page 1
Manor Coody
Mayor General Goverment
Name Division
ACTION REQUIRED:
Consideration of a claim by Bekka Development for lost parking space revenue in
conjunction with the Town Center. If the claim is approved, approval of a budget
adjustment to fund the approved claim is also requested.
Department
COST TO CITY:
$3,230.00
19,152.00 Services & Charges
Cost of this Request Category/project Budget 4 Category/Project Name
5600-9600-5308-00 4 5,002.00
Account Number
Project Number
BUDGET REVIEW:'
Funds Used To Date Program Name
14,150.00
Remaining Balance
Town Center
Fund
get Manager
Budgeted Item X Budget Adjustment Attached
CONTRACT/GRANT/LEASE REVIEW:
i2'15�
Aterd,,c3 "
.Accounting Manager
Date
City Attorney
Purchasing Officer
STAFF RECOMMENDATION:
Administrative Services Director
GRANTING AGENCY:
Internal Auditor Date
Date ADA Coordinator Date
Date
Division Head
Department Director
Administrative Services Director
Mayor
Date
Date
Date
Date
Cross Reference
New Item: Yes No
Prev Ord/Res #:
Orig Contract Date:
Orig Contract Number:
s
F
Iekka Parking
8. Page 2 �TEt t E
j'L-�iL' 1 1�1 L
;ITT OF FAYETTEVILLE, ARKANSAS
•
To: City Council
From: Mayor Dan Coody
Date: February 22, 2001
Subject:, Bekka Development Co. - Parking Cost
Bekka Development Co. is requesting reimbursement for revenue shortfall on their rental parking
spaces. Their invoice number 2933, dated February 21, sets out the costs as follows:
Parking Costs - 7/00 thru 12/00 $_3230.00
City Council previously authorized payment of parking cost to Bekka Development with resolution
number 85-00. This request is for authorization for the invoice presented and authorization to
reimburse for future invoices presented for parking revenue lost through June 30, 2001 or the
opening of the parking area in the Town Center set aside for Bekka Development whichever is later.
113 WEST MOUNTAIN 72701 501-521-7700
FAX 501576.5257
• •
51-01
RESOLUTION NO. -12-94-4
A RESOLUTION AUTHORIZING PAYMENT OF
THE LEGAL EXPENSES OF BEKKA DEVELOPMENT
CORPORATION RELATED TO THE TOWN CENTER
SUIT IN THE AMOUNT OF $8,545.35.
BE IT RESOLVED BY THE CITY COUNCIL FOR THE CITY OF
FAYETTEVILLE, ARKANSAS:
Section 1: That the City Council hereby authorizes payment of the legal
expenses of Bekka Development Corporation related to its defense of the Town Center
suit in the amount of $8,545.35. A copy of the invoice is attached hereto marked Exhibit
"A" and made a part hereof and a copy of the adjusted budget is attached hereto marked
as Exhibit "B" and made a part hereof.
PASSED AND APPROVED thi
.,;
rr/
rC,�
ATTEST:
By: �/� d 9
eather Woo ff, City Cle
day of March, 2001.
APPROVED:
By: L24 aJ
DAN COODY, May.
•
•
BEKKA DEVELOPMENT CO.
One West Mountain Street
Fayetteville, AR 72701
BILL TO
City of Fayetteville
113 W Mountain
Fayetteville, AR 72701
•
Invoice
DATE
INVOICE NO.
7/27/2000
2561
EXHIBIT A
E
E
It
P.O. NO.
TERMS
MONTH
Net on receipt
DESCRIPTION
AMOUNT
Legal
Costs-Davis,Cox
& Wright
8/99-5/00
8,545.35
rn
X
00
Total $8,545.35
E
E
It
•
•
•
•
Davis, Cox & Wright PLC
Customer Balance Detail
Type Date Num
Bekka Corp.
Williams, et al v city of Fayettv & Bekka
Invoice
Invoice
Invoice
Invoice
Invoice
Invoice
Invoice
Invoice
Invoice
Invoice
8/31/99
9/30/99
10/26/99
11/29/99
12/30/99
1/31/00
2/29/00
3/30/00
4/27/00
5/31/00
1474
1655
1813
1998
2212
2361
2525
2722
2892
Account Class
2021 -A/R
2021 -A/R
2021 -A/R
2021 -A/R
2021 -A/R
2021 -A/R
2021 -A/R
2021 -A/R
2021 -A/R
WJB
WJB
WJB
WJB
WJB
WJB
WJB
WJB
WJB
•
Amount
811.50
836.00
1,012.40
480.00
2,670.25
1,220.20
450.00
345.00
585.00
135.00
R8 545.35
City of Fayetteville, Arkansas
laBudget Adjustment Form
DCKKR rarxtng
C. 8: Page 5
Budget Year
2001
Department:
Division:
Program:
General Government
Town Center Construction
Town Center Construction
Date Requested
March 6, 2001
Adjustment 1!
EXHIBIT B
Project or Item Requested:
Funding of $11,776 for the settlement with
Bekka Devellopment for legal fee
reimbursement and for parking space lost
revenue.
Project or Item Deleted:
None. Recognition of Interest income.
Justification of this Increase:
The request is to fund the claim submitted
by Bekka Development.
Justification of this Decrease:
Sufficient cash and investments
exist to fund this request.
Account Name
Increase Expense (Decrease Revenue)
Amount • Account Number
Legal,Services 8,546
Rent 3,230
Account Name
•
interest -CMT -A&P Transf
5600 9600
5314 01
5600 9600
Decrease Expense (Increase Revenue)
Amount
11,776
5308 00
Account Number •
5600 0960
6706 98
Project Number
Project Number
Approval Signatures
Requested By Date
3ud Date'
3epertment Director.
\drain. Servi
Date
Director Date
Aayor
Date
Blue Copy: Budget & Research / Yellow Copy: Requester
Budget Office Use Only
Type: A B. C
Date of Approval
Posted to General Ledger
Posted to Project Accounting
Entered in Category Log
E
0 00WFORMSBAaw&._Of00/.WKJ
L
E
F
•
NAME OF FILE: Resolution No. 31-01
•
CROSS REFERENCE:
03/06/01
Resolution No. 31-01
07/27/00
Exhibit "A" (Copy of Bekka Development Co. Invoice No. 2561)
03/06/01
Exhibit "B" (Copy of Budget Adjustment)
03/02/01
Departmental Memo to Dan Coody, Mayor, and Fay. City Council from
Kit Williams regarding Bekka Development Corporation's request for
legal expenses and lost parking revenue
06/09/01
Departmental Memo to Fred Hanna, Mayor and Fay. City Council from
Jerry E. Rose regarding Bekka claims for legal expenses and lost parking
06/27/00
Letter to Mayor Hanna from John Bradberry, Bekka Development Co.
10/22/98
Lease Agreement between Bekka Development Company and City of
Fayetteville
03/06/01
Staff Review Form
NOTES:
FAYETTEVILLE
THE CITY OF FAYETTEVILLE, ARKANSAS
•
DEPARTMENTAL CORRESPONDENCE
To: Dan Coody, Mayor
Fayetteville City Council
From: Kit Williams, City Attorney
Date: March 2, 2001
Re: Bekka Development Corporation's request for legal expenses and lost
parking revenue
I have reviewed previous correspondence from Brian Swam (August
5, 1999), City Attorney Jerry E Rose (June 9, 2000), and John Bradberry
(May 25, 2000) concerning the parking and attorney fee requests. I have
also reviewed the contract of October 22, 1998 between the City and Bekka
Development Corporation.
Initially, I would like to say that I agree with Jerry Rose's analysis of
the City's obligations. Indeed, I believe the City was very generous in its
interpretation of Section 14A of the contract, concerning parking during
construction. However, this was probably the understood intent of the
contract as shown m correspondence by Mr Brian Swain and the
subsequent contract which secured 27 parking spaces at a lot as close as
possible to Bekka's building and for its exclusive use at our cost on August
25, 1999.
However, as Jerry stated in his letter:
"The lease does not say nor was it intended to
say that if Bekka couldn't convmce its tenants
that they should pay for the use of the alternate
parking that the City would compensate Bekka
D
M
• •
this claim you're more than welcome to but I
can't think of any legal obligation to do so on
this one."
The City Council then decided to pay the bill submitted by Bekka,
and this Council can choose to do so again.
The previous City Council turned down Bekka Development
Company's request for its $8,411.00 legal bill related to the Town Center
Lawsuit. This is apparently a second request for these expenses.
Jerry Rose and I are again in agreement that even the broad language
of the contract does not legally obligate the City to pay these attorney fees.
However I believe you can legally decide to pay some or all of this amount.
I encourage the City Council to read Jerry Rose's correspondence to Mayor
Hanna of June 9, 2000 on this issue.
•
Respectfully,
Kit Williams
City Attorney
F X Y& FTE JE/ fl•L J&
LEGAL DEPARTMENT
CITY ATTORNEY DIVISION
LAGAYLE D.MCCARTY ASST. CITY ATTORNEY
DEPARTMENTAL CORRESPONDENCE
•
JERRY E. ROSE, CITY ATTORNEY
To: Fred Hanna, Mayor
Fayetteville City Council
From: Jerry E. Rose, City Attorney Lh
Date: June 9, 2000
Re: Bekka claims for legal expenses and lost parking
John Bradberry's letter dated May 25, 2000 asks for the City to pay attorney fees and lost
parking revenue under the terms of Bekka's lease dated October 22, 1998 which is attached as part
of the agenda packet. I thought these comments may be of some assistance to you in your decision.
Attorney fees: Since the filing of what is commonly referred to as the Town Center
lawsuit in mid -1999, I have been asked by Bekka on a number of occasions as to
what my position was on paying Bekka's attorney fees incurred as a result of their
being named a party to the suit. I can recall two conversations with Dianne Boyd and
one with Jack Butt. On every occasion I expressed my belief that the City was not
legally obligated under the terms of the lease to pay Bekka's attomey fees, but that
I thought that the City Council may well feel that in fairness they should pay some
or all of those fees and I encouraged them to make a claim.
I do not believe that attorney fees for Bekka's defense of the Town Center suit are covered
under the lease agreement. Bekka is accused in the suit of entering into an illegal contract with the
City and the suit seeks to void Bekkas lease and requests Bekka refund the money paid under the
terms of the lease. I don't think that fits under the lease provisions which are cited by Bekka because
I don't t:;lieve the defense of the suit is directly or indirectly associated with the leased premises.
Instead I believe it is associated with the money Bekka received for the lease which has no
relationship whatever with the leased premises. For what it's worth, I readily concede that
reasonable legal minds may differ. I also readily concede that Bekka's defense assisted the City in
its position and that Jack Butt's able and highly competent legal skills were welcomed by all who
supported the City's position. Accordingly, I would have no objections to the City resolving this
matter by paying this claim. I just want you to know want you to know that I don't believe you are
legally obligated to. Remember that this case is likely to be appealed and I assume more attorney
fees may be incurred by Bekka as a result.
•
•
D
M
•
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•
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• •
Page 2
Mayor/City Council
June 9, 2000
2. Lost Parking Revenues: I recall talking to Dianne Boyd and John Bradberry about
the City providing alternate parking to Bekka without any additional clause in the
lease. I also recall that we were not sure we could find such alternate parking and
told Bekka that if they could find altemate parkmg that the City may compensate
them for that cost. I have no memory of nor do I believe there was a discussion of
any compensation that was to be made to Bekka under any circumstances for loss of
parking revenue. Section 14A of the lease provides that the City pay for relocating
and providing parkmg. We've done that by providing Bekka altemate parking. The
lease does not say nor was it intended to say that if Bekka couldn't convince its
tenants that they should pay for the use of the alternate parking that the City would
compensate Bekka for a loss of revenue. Again, if you wish to settle this claim
you're more than welcome to but I can't think of any legal obligation to do so on this
one.
• /cbp
If I can provide anything further, just let me know.
RFktrl
BDC JUL 2 8 2000
BEKKA DEVELOPMENT C'.°F MAYOR'S- t-^
O
EXECUTIVE SQUARE, ONE WEST MOUNTAIN, FAYETTEVILLE, AR 72701
(501) 442-7672 FAX (501) 442-4580
June 27, 2000
City of Fayetteville
Attn: Hon Fred Hanna, Mayor
113 W. Mountain
Fayetteville, AR 72701
Dear Mayor Hanna:
In accordance with our lease agreement and further to my letter of May 25,
2000, we are submitting an updated invoice for legal fees related to the leased
premises. As you may have heard, Judge Gunn denied our motion for the plaintiff
in the Town Center Lawsuit to pay defendant legal fees.
Please remit promptly to:
Bekka Development Company
One West Mountain
Fayetteville, AR 72701
Thank you for your attention to this matter.
John Bradberry
Vice President-Bekka Development Co.
cc: Mr E G Bradberry, President Bekka Development Co.
Mrs. Dianne Boyd, Secretary Bekka Development Co.
L
Jc
B