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HomeMy WebLinkAboutR-2026-046 Mid Year Budget Adjustment - Funding Pre Trial Litigation v. HollywoodRESOLUTION NO. 2026-046 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF DANIA BEACH, FLORIDA, AUTHORIZING A MID-YEAR BUDGET AMENDMENT BY THE FINANCE DEPARTMENT FOR THE LEGAL DEPARTMENT TO FUND PRETRIAL LITIGATION EXPENSES; PROVIDING FOR CONFLICTS; FURTHER, PROVIDING FOR AN EFFECTIVE DATE WHEREAS, the City believes there were several overcharges or improper charges imposed under a Large User Wastewater Agreement for the City to utilize the City of Hollywood’s services; and WHEREAS, the same type of agreement was executed by the City of Pembroke Pines, Pembroke Parks, Hallandale Beach, Miramar and Broward County; and WHEREAS, the City believes that some of the charges imposed by Hollywood and paid by the City were improperly imposed and the City should receive those payments back from the City of Hollywood; and WHEREAS, several years ago Pembroke Pines filed suit against Hollywood for the improper charges, and succeeded at trial and was awarded damages; and WHEREAS, the Pembroke Pines judgment was appealed in the litigation known as City of Hollywood v. Pembroke Pines, Appellate case numbers.: 4D2023-2252 and 4D2024-07l 5 (Fla. 4th DCA), which appeal was ultimately resolved pursuant to a settlement agreement entered into between the parties in September 2025; and WHEREAS, the City also disputes some of the charges imposed by the City of Hollywood under the agreement and initiated the government dispute resolution process authorized under Florida law; and WHEREAS, before the Hollywood/Pembroke Pines settlement, the City initiated the government dispute resolution process and in an effort to amicably resolve matters, the parties on or about September 18 and 24, 2024, each approved resolutions authorizing a tolling agreement that stayed the City of Dania Beach’s litigation against the City of Hollywood, and extended the claims period so that the City can recover damages for a five year period back to 2018, and the stay was designed to continue until a decision from the appellate courts in the City of Hollywood v. Pembroke Pines; and 2 RESOLUTION #2026-046 WHEREAS, in September 2025, the Cities of Pembroke Pines and Hollywood settled their damages dispute, which then automatically ended the City’s stay 30 days after the Court’s termination of the appeal due to the settlement; and WHEREAS, on or about December 29, 2025, the Cities of Dania Beach and Hollywood agreed to a short extension of the stay through January 21, 2026, in order to try and work on settlement, which negotiations failed; and WHEREAS, as a result, the City of Dania Beach filed suit against the City of Hollywood, as the City of Dania Beach believes that it is owed damages exceeding $5,000,000.00, plus prejudgment interest, attorney’s fees and costs in improper charges since 2018; and WHEREAS, the City hired Akerman LLP, which firm provides services to the City at a reduced government rate, and which counsel represented the City of Pembroke Pines in their success damages claim litigation against the City of Hollywood, as referenced above; and WHEREAS, utilizing Akerman allows the City to utilize the firm’s institutional knowledge and expertise in the underlying litigation; and WHEREAS, the proposed Akerman, LLP budget through Pre-Trial litigation is $650,000.00, which should extend through the year, and therefore requires an amendment to the fiscal year 2025-26 adopted budget to fund the litigation. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF DANIA BEACH, FLORIDA: Section 1. That the foregoing “Whereas” clauses are approved, made a part of, and incorporated into this Resolution by this reference. Section 2. That the projected cost of litigation exceeds the adopted budget shall be amended to approve an appropriation from fund balance (a/k/a reserves) GL Account No. 001- 00-00-389-90-01 to Professional Services Legal Account No. 001-14-01-514-31-20. Section 3. That all resolutions or parts of resolutions in conflict with this Resolution are repealed to the extent of such conflict. Section 4. That this Resolution shall take effect immediately upon its passage and adoption. SIGNATURES ON THE FOLLOWING PAGE 3 RESOLUTION #2026-046 PASSED AND ADOPTED on April 14, 2026. Motion by Commissioner Lewellen, second by Commissioner Rimoli. 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 ____ ____ ATTEST: ___________________________________ ELORA RIERA, MMC JOYCE L. DAVIS CITY CLERK MAYOR APPROVED AS TO FORM AND CORRECTNESS: EVE A. BOUTSIS CITY ATTORNEY