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HomeMy WebLinkAbout12414RESOLUTION NO. 12414 A RESOLUTION APPROVING THE ENGAGEMENT OF DAVIS GRAHAM & STUBBS, LLP AS SPECIAL COUNSEL WITH RESPECT TO AN ECONOMIC DEVELOPMENT PROJECT TRANSACTION AND AUTHORIZING PAYMENT OF SPECIAL COUNSEL COMPENSATION FROM THE 1992-2016 SALES AND USE TAX CAPITAL IMPROVEMENT PROJECTS FUND THEREFOR BE IT RESOLVED BY THE CITY COUNCIL OF PUEBLO, that: SECTION 1. Pursuant to Section 6-7 of the Charter of the City, the engagement of Davis Graham & Stubbs, LLP as special counsel with respect to an economic development project identified to City Council is hereby approved. SECTION 2. The City Council finds and determines that the services of special counsel are required to be performed in order to obtain performance of obligations incurred for a project funded from the 1992-2016 Sales and Use Tax Capital Improvement Projects Fund (“Fund”). Therefore, the payment of the compensation and costs of special counsel are an appropriate expenditure from the Fund and the Director of Finance is directed and authorized to pay such compensation and costs of special counsel out of the Fund upon approval thereof by the City Attorney. SECTION 3. This Resolution shall become effective upon approval and adoption. INTRODUCED: May 29, 2012 BY: Chris Nicoll COUNCIL PERSON Background Paper for Proposed RESOLUTION DATE: May 29, 2012 AGENDA ITEM # M-1 DEPARTMENT: Law Department Thomas J. Florczak, City Attorney TITLE A RESOLUTION APPROVING THE ENGAGEMENT OF DAVIS GRAHAM & STUBBS, LLP AS SPECIAL COUNSEL WITH RESPECT TO AN ECONOMIC DEVELOPMENT PROJECT TRANSACTION AND AUTHORIZING PAYMENT OF SPECIAL COUNSEL COMPENSATION FROM THE 1992-2016 SALES AND USE TAX CAPITAL IMPROVEMENT PROJECTS FUND THEREFOR ISSUE Should City Council approve the engagement of Davis Graham & Stubbs, LLP as special counsel with respect to an economic development project? RECOMMENDATION Approve the engagement. BACKGROUND Sensitive negotiations are occurring with a company that is presently not fulfilling its employment obligations under an economic development project. In the event negotiations are not successful, the City may need to undertake an action for recovery of the funds expended for the 1/2 cent sales and use tax fund. The expertise and staff support of David Graham & Stubbs will enhance the City's ability to obtain a successful outcome. FINANCIAL IMPACT See Background.