Title
A Resolution Of The City Commission Of The City Of Hollywood, Florida, Considering The Request Of The City Of Dania Beach, Florida, To Toll All Limitations Periods Associated With Dania Beach’s Ability To Sue The City Of Hollywood For The Issues Pertaining To The Large User Agreements As Litigated In The Broward County Circuit Court Case Styled City Of Pembroke Pines v. City Of Hollywood; Authorizing The City Attorney To Enter Into A Tolling Agreement.
Strategic Plan Focus
Financial Management & Administration
Body
Staff Recommends: Approval of the attached Resolution.
Explanation:
The City of Hollywood provides wastewater services to several “large users,” including the cities of Pembroke Pines (“Pines”), Dania Beach, Hallandale Beach, Miramar, and Broward County, pursuant to agreements that were negotiated and have been in place since the 1990s, called the “Large User Agreements.”
Pines later sued Hollywood, in actions consolidated in Broward Circuit Court Case Number CACE 18-015330, asserting, among other things, that Hollywood had improperly calculated true-up payments under the Large User Agreements. Specifically, it was asserted that Hollywood improperly paid certain settlement funds due to Pines from funds that were owned and due to Pines (“Issue 1”), and that Hollywood had improperly calculated sewer rates due by Pines pursuant to the negotiated settlements in the 1990s (“Issue 2”), (collectively, the “Pines Litigation”).
A trial was concluded in 2022, resulting in a Final Order in favor of Hollywood as to Issue 1, and in favor of Hollywood in part and Pines in part as to Issue 2. Both Pines and Hollywood have appealed the Final Judgment, and the appeals remain pending. As Dania Beach did not join with Pines in the underlying court action, the Final Order in the Pines Litigation does not apply to nor inure to the benefit of Dania Beach.
In July of this year, Dania Beach requested Chapter 164 dispute resolution proceedings as to the same issues raised in the Pines Litigation. Subsequently, in an effort to increase efficiency and reduce costs, the Parties determined that it was preferable that they agree to toll the time period for Dania Beach to bring an action against Hollywood and to toll the time period for continuation of the deadlines associated with the Chapter 164 process and resultant suit until after the current appeals of the Final Order have been finalized. Therefore, Dania Beach has requested that Hollywood agree to toll the statute of limitations for Dania Beach to bring action against Hollywood based upon the same facts as litigated in the Pines Litigation (the pertinent date under which Dania Beach may seek damages has now been established as July 26, 2019, regardless of whether tolling occurs or not, and this is the date that will apply to the matters going forward).
Should Hollywood not agree to toll the limitations period as requested by Dania Beach, Dania Beach will be required to sue Hollywood and assert its claims based upon the facts and circumstances of the negotiated large user wastewater agreements as applied to Dania Beach, which may unnecessarily cause both cities to expend litigation fees and costs that may be obviated, in whole or in part, by a final decision on the appeals.
The City Attorney does not have the authority to grant Dania Beach’s request but believes that it is prudent to defer further payment of fees and costs until the Pines appeals have been decided. Therefore, this Resolution is presented for the City Commission’s consideration.
Fiscal Impact:
There is no fiscal impact associated with this Resolution.
Recommended for inclusion on the agenda by:
Douglas R. Gonzales, City Attorney