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HomeMy WebLinkAboutR-2025-181 Tolling Agreement Extension - Hollywood Large UserRESOLUTION NO. 2025-181 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF DANIA BEACH, FLORIDA, TO EXTEND THE TOLLING OF THE STATUTE OF LIMITATIONS PERIOD IN THE MATTER RELATING TO THE LARGE USER AGREEMENT ENTERED INTO BETWEEN THE CITY OF DANIA BEACH AND THE CITY OF HOLLYWOOD AND THE ASSOCIATED CLAIMS FOUND IN THE LITIGATION FILED BY THE CITY OF PEMBROKE PINES AGAINST THE CITY OF HOLLYWOOD, UNDER CASE NO.: CACE 18-015330; AUTHORIZING THE PROPER CITY OFFICIALS TO EXECUTE A TOLLING AGREEMENT TO PRESERVE THE CITY’S STATUTE OF LIMITATIONS CLAIM THROUGH JANUARY 21, 2026; PROVIDING FOR CONFLICTS; FURTHER, PROVIDING FOR AN EFFECTIVE DATE WHEREAS, the City of Hollywood, Florida provides wastewater services to several “large users,” including the cities of Dania Beach, Pembroke Pines (“Pines”), Hallandale Beach, and Miramar, as well as Broward County, pursuant to agreements that were negotiated and have been in place since 1990, called the “large user wastewater agreements”; and WHEREAS, Pines later sued Hollywood (the City of Pembroke Pines v. the City of Hollywood) in three different actions, consolidated in Broward Circuit Court Case Number CACE 18-015330, asserting among other things that Hollywood improperly calculated sewer rates due by Pines under the LUA ; and WHEREAS, trial of all issues was concluded in December 2022, resulting in the Court’s issuance of Findings of Fact and Conclusions of Law (“Final Order”) on August 17, 2023, finding that Hollywood had breached the LUA by overcharging Pembroke Pines(“Pines Litigation”); and WHEREAS, both Hollywood and Pines appealed the Final Order against them; and WHEREAS, Dania Beach did not join with Pines as a party to the Pines Litigation, although the LUA terms in dispute in the Pines Litigation and on appeal are identical to those in the Dania Beach LUA; and WHEREAS, on July 26, 2024, demand was made by Dania Beach’s City Manager that the parties commence Chapter 164 dispute resolution proceedings as to the same issues that were raised in the Pines litigation; and WHEREAS, on August 20, 2024, the City Managers, City Attorneys and outside counsel, as well as relevant staff met at the Dania Beach City Hall to commence discussions as to Dania Beach’s claims; and 2 RESOLUTION #2025-181 WHEREAS, early in those discussions, it was determined that, in an effort to reduce ongoing attorney’s fees and costs that will be incurred in the Chapter 164 process and any resultant lawsuit, it would be preferable to both parties that an agreement be made 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 then pending appeals of the Final Order have been finalized; and WHEREAS, 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 and legal issues as litigated in the Pines Litigation; and WHEREAS, the pertinent date under which Dania Beach may seek damages has now been established as July 26, 2019, and regardless of whether tolling occurs or not, that is the date that will apply to the matters going forward; and WHEREAS, on September 18, 2024, the Mayor and City Commission of the City of Hollywood agreed to the City’s request to tolling the City of Dania Beach’s claim back to July 26, 2019; and WHEREAS, on September 24, 2024, the City Commission of Dania Beach approved resolution No.: 2024-142, authorizing the stay and agreeing to the tolling agreement; and WHEREAS, on or about October 22, 2024, the parties executed the tolling agreement which provided for the tolling of the statute of limitations as follows: “That the five-year statute of limitations [Fla. Stat 95.11(2Xb)] on the City of Dania Beach's contract claim shall be tolled pending the final order or disposition of the 4th DCA appeal, or subsequent Supreme Court appeals, if any, in the matters known as City of Hollywood v. Pembroke Pines, Appellate case numbers m 4D2023-2252 and 4D2024-0715 (Fla. 4th DCA), plus 30 days”; and WHEREAS, the Cities of Hollywood and Pembroke Pines settled their dispute in September 2025; and WHEREAS, the City of Hollywood agreed to an extension of the stay for Dania Beach in order to initiate settlement discussions with the City of Hollywood through January 21, 2026; and WHEREAS, the Parties desire to discuss an amicable settlement of claims during the proposed extended stay through January 21, 2026; and WHEREAS, the City Attorney requests that the City of Dania Beach authorize the appropriate officers of the City to execute the tolling agreement/stay extension so as to hold settlement discussions. 3 RESOLUTION #2025-181 NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF DANIA BEACH, FLORIDA: Section 1. That the above “Whereas” clauses are ratified and confirmed, and they are made a part of and incorporated into this Resolution by this reference. Section 2. That the City Commission of the City of Dania Beach authorizes the proper City officials to execute the 60 day extension of the underlying tolling agreement between the City of Dania Beach and the City of Hollywood, which would toll the City’s limitations period (preserve the City’s rights) back to July 26, 2019, and all claims thereafter, as it relates to the substance of the Pines Litigation ((the City of Pembroke Pines v. the City of Hollywood, Broward Consolidated Circuit Court Case Number CACE 18-015330) and extending the stay through January 21, 2026. Section 3. That the City Clerk of the City of Dania Beach is directed to send copies of this Resolution to the City of Hollywood. Section 4. That all resolutions or parts of resolutions in conflict with this Resolution are repealed to the extent of such conflict. Section 5. That this Resolution shall become effective immediately upon its passage and adoption. PASSED AND ADOPTED on November 18, 2025. Motion by Vice Mayor Salvino, second by Commissioner Lewellen. FINAL VOTE ON ADOPTION: Unanimous X Yes No Commissioner Lori Lewellen ____ ____ Commissioner Luis Rimoli ____ ____ Commissioner Archibald J. Ryan IV ____ ____ Vice Mayor Marco Salvino ____ ____ Mayor Joyce L. Davis ____ ____ SIGNATURES ON THE FOLLOWING PAGE 4 RESOLUTION #2025-181 ATTEST: ELORA RIERA, MMC JOYCE L. DAVIS CITY CLERK MAYOR APPROVED AS TO FORM AND CORRECTNESS: EVE A. BOUTSIS CITY ATTORNEY