Title
Authorization for Payment Authority for Trimark-Park Place, LLC (Ordinance S-48278)
Description
Request to authorize the City Manager, or his designee, for $712,500 in payment authority to pay the final notice of claim and related settlement agreement, executed on Nov. 26, 2021, for property damage sustained on Trimark-Park Place, LLC (Trimark) property located at 1615 E. Northern Ave., Phoenix, Ariz. 85020 (Property). Further request to authorize the City Controller to disburse all funds related to this item. Funding is available in the Human Services Department’s General Fund.
Report
Summary
Trimark and Central Arizona Shelter Services, Inc. (CASS) are parties to a Facilities Agreement dated June 5, 2020. The City executed a guaranty of CASS’s obligations under the Facilities Agreement. In the Facilities Agreement, Trimark allowed CASS to use the Property for temporary emergency shelter services by CASS and its clients from June 5, 2020 through Sept. 30, 2021. The Facilities Agreement required CASS to return the Property in a certain condition. Trimark asserted that the condition of the Property at the end of the term of the Facilities Agreement failed to meet the condition required by the Facilities Agreement, and Trimark filed a notice of claim with the City under Arizona Revised Statutes § 12-821.01. The City, CASS, and Trimark subsequently reached a written settlement of the claim, under which the City is obligated to pay Trimark $712,500.
Financial Impact
Pursuant to the settlement agreement, expenditures will not exceed $712,500. Funding is available in the Human Services Department’s General Fund.
Concurrence/Previous Council Action
On May 6, 2020, the City Council authorized staff to enter into contract with CASS to provide emergency shelter, permanent housing and rapid re-housing services, and authorizing the City Controller to disburse funds with Ordinance S-46598.
On June 17, 2020, the City Council approved the payment guaranty of the Facilities Agreement between CASS and Trimark with Ordinance S-46776.
On Sept. 2, 2020, the City Council approved adding additional funding to Contract 152439 with CASS with Ordinance S-46898.
Department
Responsible Department
This item is submitted by Deputy City Manager Gina Montes and the Human Services Department.