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ITEM #14 CITY OF COLTON AGENDA REPORT FOR COUNCIL MEETING OF NOVEMBER 17, 2009 TO: HONORABLE MAYOR AND CITY COUNCIL FROM: BOB MILLER, INTERIM CITY MANAGER DEAN DERLETH, CITY ATTORNEY SUBJECT: APPROVE FIRST AMENDMENT IN THE REDUCED AMOUNT OF'. $13,725.35 WITH CV STRATEGIES FOR THE COMPLETION OF STRATEGIC COMMUNICATIONS SERVICES AND AVOIDANCE OF CLAIM AND LITIGATION JDATE: BACKGROUND NOVEMBER 12, 2009 On September 15, 2009, staff requested that the City Council approve a change order in the amount of $18,806.37 to close-out the City's contractual relationship with CV Strategies (see attached Agenda Report from 9-15-09). As stated in the 9-15-09 Agenda Report, staff had requested CV Strategies to perform services in excess of the City Manager's $25,000 contractual authority, and thus a Council approved amendment was necessary to ratify and authorize payment. The City Council denied staffs request by a vote of 3-4. DISCUSSION/ANALYSIS Following the City Council's 9-15-09 action, the City received a demand letter from CV Strategies for full payment of the amount they concluded was owing as of October 1, 2009. Accordingly, they demanded payment of $16,071.87 ($15,225.35 plus finance charges of $846.52). Without full payment, they stated that they would pursue court action. City staff and the City Attorney discussed with the City Council the potential litigation matter in Closed Session on October 20, 2009. Following Closed Session, the City Attorney has discussed with Mr. Rob Bernheimer of CV Strategies the possibility of resolving this billing dispute short of litigation. 1 Please note that this is actually less than the amount initially requested ($18,806.37) by staff on September 15, 2009. ORANGE\DDERLETH\62738.1