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HomeMy WebLinkAboutTR-94-94 THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON I REPORT Meeting: File# :, GENERAL PURPOSE & ADMINISTRATION COMMITTEE ^� Date: Res. # C, PrL- � October 17, 1994 By-Law# Report#: File #: T Subject: R-94-94 MOSPORT PARK LIMITED LEGAL FEES - Transfer of Funds Recommendations: It is respectfully recommended that the General Purpose and Administration Committee recommend to Council the following: 1. That report TR-94-94 be received, 2. That funds in the amount of $85,000 be transferred from the Working Funds Reserve (Account # 2900-1-X) to the Professional Fees Reserve(Account # 2900-26-X) to provide for the potential legal fees regarding the Mosport Park Limited litigation. Background: 1. Council, at it's in camera meeting of July 18,1994, resolved not to enter into an agreement regarding Mosport Park Limited and the special events issues which have been ongoing for the last few years. As a result, Mosport Park Limited is continuing it's original litigation proceedings against the Municipality. 2.0 The amount recommended to be transferred is an estimation of the amount of legal fees that will be required in order to accommodate the litigation involved, however the final cost will be directly related to the actual amount of court time. 3.0 The expenditures to date for Mosport Park Limited related legal issues is as follows: 1994 $ 64,462 (to Oct./94) 1993 14,721 1992 9,382 Total $ 88,565 It should be noted that there are ongoing legal proceedings which will continue to accrue and as such the 1994 value will adjust with time. ...2 72 -3 RECYG- PAP ER ,APE RECYCLE THIS 6 PR-0 W RECYCLED PAPER TR-94-94 Page 2 3.1 The 1994 Budget value for Mosport Park Limited legal fees was $10,000, and as a result the budget will be overexpended significantly in this area. It is therefore recommended that funds be provided to accommodate the $54,000 overexpenditure above, plus an anticipated cost still to be incurred of approximately $36,000. 3.2 In the event that the legal fees are in excess of that provided, Council will be informed of the relevant information. 4.0 The purpose of the Working Funds Reserve is to provide the Municipality with a cushion for costs which may be in excess of that which is budgeted, and it's recommended use has been very conservative over the past. It is suggested that this situation does warrant consideration of utilization of these funds. Respectively Submitted, Reviewed by, Marie A. Marano, H.BSc.,A.M.C.T. W.H. Stockwell, Treasurer. Chief Administrative Officer MAM/pp I I 724 i _ L