BREWER – City leaders discussed two legal disputes in executive session before reconvening Tuesday’s City Council meeting and deciding to pay $16,750 to settle the issues.

The city will pay RLI Insurance Co. $12,500 to settle its dispute with the city over contract retainage with the Brewer Water District.

Brewer also will pay Bruce and Joan Winslow $4,250 to settle a disagreement over the assessed damage from the city realigning the Pierce Road, which encroached on the Winslows’ property.

The city also hired Pine State Safety Lines Inc. of Topsham to paint a combined 73.8 miles of street lines for $17,677.

During the meeting, the council created a special reserve fund in the Brewer police budget that will allow the Police Department to receive the proceeds from forfeited or seized assets, and it approved buying a vehicle for the police chief’s use at a cost of $14,900.

“When it’s not in use by the police chief it can be used by the department,” said City Manager Steve Bost.

The police chief’s current city vehicle has broken down and is no longer cost-effective to repair, according to city documents.

At the meeting the council also:

. Presented a Community Service Award to Kyle Alexander for his work raising money for displaced Eastern Fine workers.

. Recognized the Brewer Youth Hockey Travel Squirts team as the New England Champions. This is the second year in a row the team has earned the title.

. Recognized the contributions of Ruth F. Epstein, owner of the former Epstein Department Store on Main Road, who died March 27.

. Approved a malt and vinous liquor license to Dino’s Subs and Seafood, 393 N. Main St.