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HomeMy WebLinkAbout10577RESOLUTION NO. 10577 A RESOLUTION AUTHORIZING THE EXPENDITURE OF $42,300 OF LEASE PROCEEDS HELD UNDER ESCROW AGREEMENT DATED JULY 30, 1999 FOR COSTS INCURRED TO READY THE BENESIGHT BUILDING FOR SUBLEASE TO RECEIVABLE MANAGEMENT SERVICES, AND INCREASING PROJECT ED0502 THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF PUEBLO, that: SECTION 1. The City Council hereby authorizes additional funds in the amount of $42,300 to be expended from the lease proceeds fund held in escrow. Such funds are accounted for in City Project # ED0502. SECTION 2. Said funds shall be used to pay The PEDCO Foundation, Inc. for attorney fees relating to the sublease between Benesight, Inc. and Receivable Management Services and for additional building preparation expenditures incurred. INTRODUCED December 12, 2005 PRES1 9 F CITY frP s BY Michael Occhiato Councilperson /&v. #/0,577 Background Paper for Proposed RESOLUTION AGENDA ITEM # J DATE: DECEMBER 12, 2005 DEPARTMENT: FINANCE DEPARTMENT ROBERT HAIN, FINANCE DIRECTOR TITLE A RESOLUTION AUTHORIZING THE EXPENDITURE OF $42,300 OF LEASE PROCEEDS HELD UNDER ESCROW AGREEMENT DATED JULY 30, 1999 FOR COSTS INCURRED TO READY THE BENESIGHT BUILDING FOR SUBLEASE TO RECEIVABLE MANAGEMENT SERVICES, AND INCREASING PROJECT ED0502 THEREFORE ISSUE Should City Council authorize increased funding from the lease proceeds fund for the purpose of paying additional costs associated with the Benesight Building sublease to Receivable Management Services. RECOMMENDATION The Staff recommendation is, Approval of Resolution. BACKGROUND The PEDCO Foundation, Inc. incurred legal fees and additional building preparation expenses, which were not included in the initial allocation for this project. FINANCIAL IMPACT This action increases by $42,300, the amount of funds authorized to be paid to PEDCO Foundation Inc. from the lease proceeds fund held under escrow. This increases the authorized amount in Project # ED0502 from $192,025 to $234,325.