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HomeMy WebLinkAbout2002 11 25 Consent D Settlement Agreement with the Florida Power Related to Utility Taxes Due ...; .. COMMISSION AGENDA ITEM D CONSENT X INFORMATIONAL PUBLIC HEARING REGULAR November 25. 2002 Meeting MGR~PT~ A nthorization REQUEST: The City Manager requesting the Commission approve a Settlement Agreement with Florida Power Related to Utility Taxes Due the City and Authorize the City Manager to Execute the General Release. PURPOSE: To obtain approval to enter into a settlement agreement with Florida Power for back utility taxes owed the City and obtain authorization for the City Manager to execute the general release. CONSIDERATIONS: . The City increased its Public Service Taxes effective beginning July 2000 from 8% to 10%. The effective date was to be April 2000; however, the Department of Revenue was not provided timely notice so the new date was July 2000. . Florida Power did not begin remitting 10% until February 2001 when notified by the City of the deficiency. It is the responsibility of collecting entities to monitor the Department of Revenue's website for changes to tax rates. The City has no duty to notify the collecting entities. . Seven months (July 2000 - January 2001) worth of taxes had been underpaid resulting in a liability to the City in the amount of$215,455.10. . The City has been working with Florida Power over the past couple of years to resolve this Issue. . Florida Power has determined that the cost to them to reprogram their system to charge residents for the taxes owed the City was more costly than the amount of taxes owed; hence, Florida Power has decided to pay the City for the amount owed the City versus collecting it from the residents and passing it along to the City as it is nornlally done. ..,., ATTACHMENTS: Draft version of the General Release RECOMMENDATION: Approve settlement agreement with Florida Power for back utility taxes owed the City and authorize the City Manager to execute the general release. COMMISSION ACTION: cY' ./ >,. "':"~-.. GENERAL RELEASE KNOW ALL MEN BY THESE PRESENTS: 1. That the undersigned City of Winter Springs (the "City"), a Florida municipality, for good and valuable consideration in the amount of two-hundred fifteen thousand, four hundred fifty-five dollars and ten cents ($215,455.10), the receipt and sufficiency of which is hereby acknowledged, and on behalf of all its respective successors and assigns, fully release, waive, and forever discharge Florida Power Corporation, and its agents, servants, employees, sureties, heirs, personal representatives, assigns and successors, and all other persons, firms or corporations connected therewith, including any parent or affiliate companies, of an from any and all demands, causes of action, damages, judgments or suits at law and equity of whatsoever kind, whether due or not, director or contingent, liquidated or unliquidated, patent or latent, known or unknown, in any way related to or growing out of and which relate in any way to the collection and payment of the municipal utility tax by Florida Power to the City between July 2000 and January 2001. 2. It is agreed and understood that this General Release is executed as a settlement and compromise of a disputed claim and that payment of the consideration expressed is not to be construed as an admission of liability on behalf of the party released or to be considered or construed as a waiver or an estoppel against the releasor to proceed against parties not herein released. .... .. ~./ !"'... .. 3. The undersigned acknowledges full and complete satisfaction, represents and warrants that it has not assigned any right, claim, or cause of action against the releasor and declares and represents that no promises, inducements, or agreements not herein expressed have been made. It is further acknowledged that this Release contains the entire agreement between the parties hereto concerning the above-referenced claims, and that the terms of this Release are contractual and not mere recitals. Lastly, the undersigned warrants that it is duly authorized and competent to execute this Release. of IN WITNESS WHEREOF, this Release has been read and signed this ,2002. day WITNESSES: CITY OF WINTER SPRINGS Ron McLemore, City Manager ATTEST: Andrea Lorenzo-Luaces, City Clerk F:IDocslCity of Winter Springs\AgreementsIGeneraIRelease_FLPower_110102.jd ~ BROWN, WARD, SALZMAN&.'WEISS, P.A. Attorneys at Law Usher L Brown t Offices in Orlandol' Kissimmee, Suzanne D'AgrestaD Cocoa & Viera Anthony A. GarganeseD . Gary S. Salzman" John H. Ward t Jeffrey S. Wefs!! Debra S. Babb Jeffrey P. Buak John U. Biedenham. Jr: Joseph E. Blitch Jennifer A. Michael Todd K. Nonilan Michelle A. Reddin Vincent E. Scarlatos tBoard Certified CIvil Trial Lawyer December 9, 2002 OBoard Certified l;Iuslness Utlgatlon Lawyer cBoard Certified ~ity. County & Local Government Law Erin J. O'Leary Of Counsel Sent Via FedEx A WB# 8360 6552 4652 Sophia O'Keefe Community Relations Manager Florida Power Corporation 3300 Exchange Place,. NP4B Lake Mary, FL 32746 , Re: Original Executed General Release Settlement of Municipal Utility Tax Dispute City of Winter Springs - General Our File No.: 1193 . Dear Ms. O'Keefe Please find enclosed the original General Release executed by the City of Winter Springs City Manager and City Clerk, in regards to the above-referenced matter. We will forward Florida Power check no. 097829 in the amount of $215,455.10 to Louise Frangoul. Finance Director for the City. If you have any questions please do not hesitate to call our offices. Very truly yours, JPB/jd Enclosure: Original General Release " . CC: Anthony A. Garganese, City Attorney Louise Frangoul,. Finance Director F:u.awyerljeflbICIty of Winter Spt1ngsICorTespondenceIFLPower _ Okeefe_SeltlementLtr120902.wpd 225 East Robinson Street. Suite 660. P.O. Box 2873. Orlando. Florida 32802-2873 Orlando (407) 425-9566 Fax (407) 425-9596 . Kissimmee (321) 402-0144 . Cocoa & Viera (866) 425-9566 Website: www.orlandoiaw.net . Email: firm@orlandolaw.net '" \. .' . " ~- v GENERAL RELEASE KNOW ALL MEN BY THESE PRESENTS: 1. That the undersigned City of Winter Springs (the "City"), a Florida municipality, for good and valuable consideration in the amount of two-hundred fifteen thousand, four hundred fifty-five dollars and ten cents ($215,455.10), the receipt and sufficiency of which is hereby acknowledged, and on behalf of all its respective successors and assigns, fully release, waive, and forever discharge Florida Power Corporation, and its agents, servants, employees, sureties, heirs, personal representatives, assigns and successors, and all other persons, firms or corporations connected therewith, including any parent or affiliate companies, of an from any and all demands, causes of action,. damages, judgments or suits at law and equity of whatsoever kind, whether due or not, director or contingent, liquidated or unliquidated, patent or latent, known or unknown, in any way related to or growing out of and which relate in any way to the collection and payment of the municipal utility tax by Florida Power to the City between July 2000 and January .2001. 2. It is agreed and understood that this General Release is executed as a settlement and compromise of a disputed claim and that payment of the consideration expressed is not to be construed as an admission of liability on behalf of the party released or to be considered or construed as a waiver or an estoppel against the releasor to proceed against parties not herein released. ~ .. . . " 3. The undersigned acknowledges full and complete satisfaction, represents and warrants that it has not assigned any right, claim, or cause of action against the releasor and declares and represents that no promises, inducements, or agreements not herein expressed have been made. It is further acknowledged that this Release contains the entire agreement between the parties hereto concerning the above-referenced claims, and that the terms of this Release are contractual and not mere recitals. Lastly, the undersigned warrants that it is duly authorized and competent to execute this Release. . IN WITNESS WHEREOF, this Release has been read and signed this 25th day of November ,2002. WITNESSES: CITY OF WIN.TER SPRINGS ~~~ M (~~~ ~ - 25-- /rJ . 0 . ./~CJ; ~&_' .' Ron McLerncta, .~:ty Manager' . . -Luaces, City Clerk F:\Docs\City of Winter Springs\Agreements\GeneraIRelease_FLPower_110102.jd .....-En"IJ'~~~.uc . OIl"""oIPrcQr-.en.fIlt,lnc.~ P.O.blS.~ .. Aahlf',NOZ7e02 ~ Progr8S$ Energy .. Clle~ck Da te 27-NOV-02 Check Number 97 829 Vendor name CITY OF WINTER SPRINGS Vendor #- 157181 Involee# Invoice Date Invoice Description Adjustments Paid Amt , o. . <?- ~ ~ ..;X~' o.W?'~v ".. . J/I/' \",?-/O 0 o I 215455.1 21545501.1 lI'O'l?82CjIl' ':01; 10 10 10 312 ?Cj.: O? 52Cj 20? II'