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Home My WebLink AboutR-2024-095 F.S. Chapter 164 Resolution - Dispute with City of Hollywood Re Payments Under the LUARESOLUTION NO. 2024- A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF DANIA BEACH, FLORIDA, ADOPTED PURSUANT TO § 164.1052, FLORIDA STATUTES, DECLARING THE INTENT OF THE CITY COMMISSION TO INITIATE CONFLICT RESOLUTION PROCEDURES AS SET FORTH IN CHAPTER 164, FLORIDA STATUTES; FINDING THAT A CONFLICT EXISTS WITH THE CITY OF HOLLYWOOD, FLORIDA, ARISING FROM THE LARGE USER AGREEMENT BETWEEN THE CITY OF DANIA BEACH AND THE CITY OF HOLLYWOOD, DATED SEPTEMBER 28, 1990, RELATED TO THE FY 2018 - 2022 "TRUE -UP" PAYMENTS FROM THE CITY OF DANIA BEACH TO THE CITY OF HOLLYWOOD AND HOLLYWOOD'S PROPOSED INCREASE TO THE LARGE USER WASTEWATER MONTHLY INCREASE CHARGES; DIRECTING THE CITY MANAGER TO PREPARE AND FORWARD A CERTIFIED COPY OF THIS RESOLUTION AND THE REQUIRED CERTIFIED LETTER TO THE CITY MANAGER FOR THE CITY OF HOLLYWOOD AND OTHER GOVERNMENTAL UNITS PURSUANT TO SECTION 164,1052, FLORIDA STATUTES; AUTHORIZING THE APPROPRIATE CITY OFFICIALS TO TAKE ALL STEPS NECESSARY TO EFFECTUATE THIS RESOLUTION; PROVIDING FOR CONFLICTS; FURTHER, PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, on September 28, 1990, the City of Dania Beach, other neighboring municipalities, and Broward County entered into a Large User Agreement ("LUA") with the City of Hollywood, Florida providing for the utilization of a common area -wide wastewater collection, treatment and disposal facility; and WHEREAS, the LUA provides for annual "true -up" payments; and WHEREAS, Dania Beach received annual True Up Reports from Hollywood that adjust for previous estimated expenses and either seek an additional payment or identify a credit for the preceding fiscal year; and WHEREAS, on or about October, 2023, and thereafter, Dania Beach advised Hollywood that Hollywood was charging Dania Beach more than actual costs for certain expenses, identified in further detail below; and WHEREAS, on or about October 2023, and thereafter, Hollywood advised Dania Beach that the "Large User Wastewater Monthly Billing Rate" would be adjusted unilaterally changing the analysis relating to transmission; and WHEREAS, Hollywood has no right to make unilateral changes to the LUA; and WHEREAS, the City of Pembroke Pines has litigated substantially the same issues, and the judgment rendered in that case is on appeal; and WHEREAS, Dania Beach has attempted to work with Hollywood, including requesting a tolling of the statute of limitations until the appeals court renders a decision in the Pembroke Pines case, but Hollywood has rebuffed or denied any cooperation; and WHEREAS, Dania Beach seeks repayment of overcharges by Hollywood in the following categories under the Large User Agreement: 1) Debt Service Charges (the 10% and 15% surcharges); 2) the Allocation Percentage; 3) Operation and Maintenance Costs 4) Payment in Lieu of Taxes and 5) application of the Renewal, Replacement, and Improvement Accounts Contributions; and also seeks to negate Hollywood's intent to unilaterally modify the analysis and charge a higher rate for the Allocation Percentage in the future; and WHEREAS, the Chapter 164 letter is attached as Exhibit A, and set forth Dania Beach's categories of repayment; and WHEREAS, notwithstanding its objections, Dania Beach, in accordance with the LUA and in a good faith effort to resolve its disagreement with Hollywood, continues to remit the payments demanded by Hollywood; and WHEREAS, the City of Dania Beach has asked the City of Hollywood to toll the statue of limitations for any claims arising under the LUA until after the litigation between Hollywood and the City of Pembroke Pines is resolved on appeal; and WHEREAS, the City of Dania Beach now seeks to initiate the conflict resolution proceedings with the City of Hollywood pursuant to Ch. 164, F.S., in an effort to address all issues set forth in the Objection Letter; and WHEREAS, Chapter 164, Florida Statutes, entitled the "Florida Governmental Conflict Resolution Act," ("Act") provides that governmental entities in dispute must attempt to negotiate their differences in these types of matters pursuant to the procedures outlined in the Act prior to initiating court proceedings regarding the conflict; and WHEREAS, Section 164.1052, F.S., requires the governing body of the government entity initiating the conflict resolution procedures to adopt a resolution expressing its intent to initiate such procedure; and 2 RESOLUTION #2024- WHEREAS, the City Commission of the City of Dania Beach finds that it is in the best interests of the citizens and residents of the City to Initiate conflict resolution proceedings with the City of Hollywood pursuant to Ch. 164, F.S. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF DANIA BEACH, FLORIDA: Section 1. That the foregoing 'WHEREAS" clauses are hereby ratified and confirmed as being true and correct and hereby incorporated herein. Section 2. That the City Commission of the City of Dania Beach, Florida, hereby expresses its intent to initiate the conflict resolution procedures pursuant to Section 164.1052, F.S., with the City of Hollywood concerning the disagreement between the City of Dania Beach and the City of Hollywood regarding the True Up Reports Payments and Credits. Section 3. That the City Commission of the City of Dania Beach finds that it has a conflict with the City of Hollywood, Florida concerning the LUA. The specific issues serving as the basis for this conflict are set above in the WHEREAS clauses. Section 4. That the City Commission of the City of Dania Beach, Florida, hereby directs the City Manager to forward a certified copy of this Resolution, as well as the required Conflict Resolution Letter, to the City Manager for the City of Hollywood, within five (5) days of adoption of this Resolution, by certified mail, return receipt requested, pursuant to §164,1052(1),F.S. The Conflict Resolution Letter shall include all items required by § 164.1052(1), Florida Statutes, including without limitation: a. Description of the conflict between the City of Dania Beach and the City of Hollywood; b. List of the governmental entities with which the City of Dania Beach has a conflict; C. The City of Dania Beach' justification for initiating the conflict resolution procedures of the Act; d. A proposed date and place for the Conflict Assessment Meeting required by §164,1053, F.S.; e. Suggestions as to which individuals should be in attendance at the Conflict Assessment Meeting. 3 RESOLUTION #2024 The City Manager is further directed to send a copy of the letter to any other state, county or other local governmental entity, including all parties to the LUX that may have a role in implementing any terms of any settlement arising out of the Conflict Assessment Meeting, or whose interests may be substantially affected by the resolution of the conflict, or any other governmental unit the City Manager deems appropriate. Section 5. That the appropriate City officials are hereby authorized and directed to take all steps necessary to effectuate this Resolution. Section 6. That all Resolutions or parts of Resolutions in conflict herewith, be and the same are repealed to the extent of such conflict. Section 7. That if any clause, section or other part of this Resolution shall be held by any court of competent jurisdiction to be unconstitutional or invalid, such unconstitutional or invalid part shall be considered as eliminated and in no way effecting the validity of the other provisions of this Resolution. Section 8. That this Resolution shall become effective immediately upon its passage and adoption. PASSED AND ADOPTED on 2024. Motion by rP �)5y,� second by' f3 lr V i FINAL VOTE ON ADOPTION: Unanimous � Yes No Commissioner Joyce L. Davis Commissioner Tamara James Commissioner Marco Salvino Vice Mayor Lori Lewellen _ Mayor Archibald J. Ryan IV SIGNATURE PAGE TO FOLLOW 4 RESOLUTION #2024- I5 ATTEST- Q` f ELORA M J�, CITY CLERK 7Mcclan, APPROVED AS TO FORM AND CORRECTNESS: EV A) B UTSIS CITYATTORNEY RESOLUTION #2024- '-) j 2024 Via Email: gkeller@.hollMoodfi.org and: U.S. Certified Mail, No. George Keller, City Manager As Chief Administrative Official for City of Hollywood, Florida 2600 Hollywood Boulevard Hollywood, FL 33020-4807 Subject: Chapter 164 Resolution; Dispute with Dear City Manager Keller: in accordance with the provisions of Florida that begins the process for resolution, where Beach and the City of Hollywood. in accordance with the A. The Nature of the Dispute: The City of Dania Beach dispute for each category: 1) Debt Service Charges'(the 100i Maintenance Costs 4) Payment ii improvement Accounts Contribm, We also seek a declaration thatH( rate for the Allocation Percentage that are not actual costs, we woul B. The List of Government En The City of Hollywood, Florida. the LUA Ch. 164, please of the disputes the following: enclosed Resolution m the City of Dania refunds of the overcharges 2) the Allocation Percentage; 3) Operation and application of the Renewal, Replacement, and wood's intent to unilaterally modify the analysis and charge a higher the future is invalid. To the extent other overcharges are identified ;ek to reconcile our opinions and reach a resolution. ys with Whom the City of Dania Beach has a Conflict: C. The Justification for Initiating the Conflict Resolution Procedures of the Act: The City of Dania Beach believes that Hollywood is overcharging for wastewater services which should be charged at actual cost under the Large User Agreement and has been unsuccessful in having Hollywood engage in discussions to address these concerns or toll the statute of limitations pending the disposition of an appeal on similar issues arising under this same Large User Agreement. I1Page D. A Proposed Date and Place for the Conflict Assessment Meeting Required by Section 164.1053 Fla. Stat.: As required, a date is being chosen within ten days of the passing of the Resolution: [INSERT DATE AND LOCATION FOR MEETING BETWEEN THE TWO CITY MANAGERS OR THEIRDELEGEES] E. Suggestions as to which individuals should be in attendance at the Conflict Assessment Meeting. It is suggested that the City Managers and the True Up Reports attend. Of course, if Hollywood prefers to mediate allowed by agreement under the statute, plc Candido Sosa-Cruz, ICMA Eve A. Boutsis, City Attorxii Frank DiPaolo, Chief Finan Officer of reviewing and reconciling ues in lieu of a Chapter 164 proceeding, as is know. We look forward to hearing from you. Sincerely, Ana M. Garcia, ICMA-CM Citv Manaeer. Dania Beach 21Page