HomeMy WebLinkAboutR-94-0106yc3r �7 j-e-�
A
94- 106
RESOLUTION NO.
WC
A RESOLUTION, WITH ATTACHMENT(S), AUTHORIZING
THE DIRECTOR OF FINANCE TO PAY TRANSCALL
AMERICA, INC., AS SUCCESSOR -IN -INTEREST OF
TELUS COMMUNICATIONS, INC., WITHOUT ADMISSION
OF LIABILITY, THE PRINCIPAL SUM OF
$161,655.00, LESS $26,975.40, PLUS INTEREST,
PAYABLE IN 60 EQUAL MONTHLY PAYMENTS OF
$2,541.57 EACH, BEGINNING IN MARCH OF 1994,.
IN FULL AND COMPLETE SETTLEMENT OF ANY AND
ALL CLAIMS AND DEMANDS AGAINST THE CITY OF
MIAMI, UPON THE EXECUTION OF A SETTLEMENT
AGREEMENT RELEASING THE CITY OF MIAMI FROM
ANY AND ALL CLAIMS AND DEMANDS; AUTHORIZING
THE CITY MANAGER TO EXECUTE THE SETTLEMENT
AGREEMENT, IN SUBSTANTIALLY THE ATTACHED
FORM, ON BEHALF OF THE CITY OF MIAMI;
ALLOCATING FUNDS THEREFOR FROM ANTICIPATED
FUTURE REVENUES OF PUBLIC SERVICE TAXES DUE
FROM TRANSCALL AMERICA, INC., OR ITS
SUCCESSOR -IN -INTEREST.
WHEREAS, a claim was presented to the City of Miami by
Transoall America, Inc., the suooessor-in-interest of Telus
Communications, Inc., alleging an overpayment of Public Service
Taxes due under Chapter 55 of the City of Miami Code from the
period November 1, 1988 through November 30, 1989; and
WHEREAS, the above lawsuit has been investigated by the City
Attorney's Office, the City Manager's Office, the Budget
Department, the Finance Department and the Department of Internal
Audits, and said offices and departments recommend that this
claim be settled for the sum of $161,655.00, less $26,975.40
already credited to the City of Miami, upon the conditions set
forth in the attached Settlement Agreement;
1Crff corac MMOIN
�dEETMG OF
FEB 17 1994
awabolan No.
-94- 106
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SETTLEMENT AGREEMENT
za t,
THIS SETTLEMENT AGREEMENT entered into this day of
1993, by and between TRANSCALL AMERICA, INC. ("TRANSCALL"), successor -in -interest
to TELUS COMMUNICATIONS, INC. ("TELUS"), and the CITY OF MIAMI, FLORIDA
("'CITY"), as follows:
4
WHEREAS, the parties hereto wish, and are mutually willing, to enter into this
SETTLEMENT AGREEMENT for the purpose of settling the differences between them, and all ;
claims regarding alleged overpayments of Public Service Taxes on Telecommunications Service
paid by TELUS to the CITY during the period November 1, 1988 through November 30, 1989;
and
WHEREAS, TRANSCALL is the successor -in -interest to TELUS, including its assets and
accounts receivable.
NOW, THEREFORE, in consideration of the premises. and other good and valuable
consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto
agree as follows:
1. Payment or Credit by the CITY: The CITY agrees to pay to TRANSCALL, or
to credit TRANSCALL, with the principal sum of $161,655.00, plus interest as hereafter
provided. The principal amount of $161,655.00 is inclusive of $26,975.40 in credits that
Transcall has taken in remitting public service tax payments to the City with returns for the
months of March, Aril May, June and Jul 1993. The remaining
April, Y� � Y, $134,679.60 will be paid ;
E.
or credited with interest at the rate of 5.0% per annum on a declining balance beginning the date
this Settlement Agreement is approved by the City of Miami Commission. It is the intent of the
parties that TRANSCALL will recover these amounts by taking an "identified" deduction on its
04- 106
t
monthly tax return of Public Service Taxes due the CITY in amount of $2,541.57 beginning the
month following the approval of this Agreement by the City Commission, and ending on the 60th
month thereafter, until the entire principal sum and accrued interest are retired in accordance with
the "LEVEL DEBT CASH FLOW CALCULATOR" attached hereto as Exhibit "A." In the event
that such deductions become impracticable because the tax payments due from TRANSCALL's
(or the tax payments due from TRANSCALL's successor -in -interest) fall below the $2,541.57
deduction, TRANSCALL (or its successor -in -interest) will give thirty (30) days notice to the
CITY in writing, whereupon the CITY will commence monthly payments of the difference (up,
to $2,541.57) to TRANSCALL (or its successor -in -interest) and will continue such payments until
the entire principal sum and accrued interest are retired as referenced above.
In the event the CITY commences monthly payments as provided herein, the CITY shall
have a 30-day grace period to effect payment following TRANSCALL's monthly filing of its -
Public Service Tax Returns, and payments shall be made to Transcall America, Inc., at 515 East
Amite Street, Jackson, Mississippi 39201, to the attention of Ron C. Levitt. Should the CITY
fail to make any payment as required herein, TRANSCALL may seek judicial enforcement of this
Agreement.
2. Release by TRANSCALL and Final Settlement: TRANSCALL releases,
compromises, and settles any and all claims, rights and actions, whether known or unknown,
which TELUS or TRANSCALL has, or in the future may have, against the CITY resulting and
originating from the overpayment by TELUS of Public Service Taxes during the period
November_1, 1988 through November 30, 1989.
3. Audit: The CITY reserves the right, within the time permitted by law, and at its
own expense, to audit TELUS public service tax returns and supporting documentation for the
4,
-2- 94- 1O6
'{
.. 1:
period covered by this claim and assess against TRANSCALL any amounts determined to be due '
i
as a result of such audit. Neither this paragraph, nor this SETTLEMENT AGREEMENT, shall ;
be construed or deemed to be a limitation upon or waiver of that right or any right the City may
have to inspect accounts and records required to be kept under the Code of City of Miami,
Section 55-16.
4. Entire Agreement: This SETTLEMENT AGREEMENT constitutes the entire
agreement of the parties. This SETTLEMENT AGREEMENT may not be modified or amended,
or - any term or provision hereof waived, or discharged, except in writing signed by the party
f.
against` whom such amendment, modification, waiver or discharge is sought to be enforced.
5. Assignability: Neither of the parties hereto may transfer, assign or otherwise
alienate any of its obligations under this SETTLEMENT AGREEMENT except upon the express
written consent of the other party. Neither of the parties to this SETTLEMENT AGREEMENT
may transfer, assign or otherwise alienate the rights conferred upon it by virtue of this
i
SETTLEMENT AGREEMENT.
6. Full Power and Authority: Each of the parties to this SETTLEMENT
{
AGREEMENT hereby warrants and covenants that it has full right and authority to assert and
dispose of all claims covered herein and that it has not previously transferred, assigned or
f.
otherwise alienated any of such rights. Each of the parties hereby warrants and covenants that
the person or persons executing this SETTLEMENT AGREEMENT on its behalf is duly:
authorized and empowered to do so.
7. Governing: This SETTLEMENT AGREEMENT shall be interpreted and
1
enforced in accordance with the laws of the State of Florida,
1
{
-3-
94- 146
� r :;19'�sm�ir
LEVEL DEBT
CASH FLOW
CALCULATOR
}f
t134,679.60;
5% APR; $2� 541.57/MONTH;
60 MONTHS
PAYMENT
PAYMENT
INTEREST
PRINCIPAL
PRINCI.-AL
NUMBER
AMOUNT
AMOUNT
REDUCT.
PALANCE
134,679.60
1
2 541.57
561.16
1#980.41
132,699.19
2
2,541.57
552.91
11988.66
130,710.54
1r,
3
2 541.57
r
544.63
1 996.94
r
128 713.60
4
21541.57
536.31
21005.26
126,708.33
5
2,541.57
527.95
2,013.62
124,694.71
6
21541.57
519.56
2,022.01
122,672.70
7`
2,541.57
511.14
2,030.43
120,642.27
8'
21541.57
502.68
2,038.89
118p603.38
9
2,541`.57
494.18
29047.39
116,555.99
10
21541.57
485.65
21055.92
114,500.07
11
21541.57.
477.08
21064.49
112,435.58
12
21541.57
468.48
2,073.09
1101362.49
13
2541.57
459.84
2,081.73.
108,280.77
14`
21541.57
451.17
21090.40
106,190.37
15
21541.57
442.46
2,099.11
104,091.26
16
21541.57
433.71
21107.86
101,983.40
17
2,541.57
424.93
2,116.64
99,866.76
18
21541.57
416.11
2,125.46
97,741.30
19
21541.57
407'.26
21134.31
95,606.99
20
21541.57
398.36
2,143.21
93,463.78
21
21541.57
389.43
21152.14
91,311.64
22
2,541.57
380.47
2,161.10
89,150.54
23
2,541.57
371.46
2,170.11
86j980.43
24
2,541.57
362.42
2,179.15
84,801.28
25
2,541.57
353.34
21188.23
82,613.05
26
21541.57
344.22
21197:35
80,415.70
27
2,541.57
335.07
2,206.50
78,209.19
28
2,541.57
325.87
2,215.70
75,993.49
29
2,541.57
316.64
2,224.93
73,768.56
30
21541.57
307.37
2,234.20
71,534.36
31
2,541.57
298.06
2,243.51
69,290.85
32:
2,541.57
288.71
2,252.86
67,037.99
33'
21541.57
279.32
2,262.25
64,775.75
34
2154i.57
269.90
2,271.67
62,504.08
35
21541.57
260.43
2,281.14
60,222.94
36
2,541.57
250.93
21290.64
57,932.30
37
2,541.57
241.38
2,300.19
55,632.12
38
2,541.57
231.80
21309.77
53,322.35
39
21541.57
222.18
21319.39
51,002.95
'
40
2,541.57
212.51
2,329.06
48,673.89
41
2,541.57
202.81
21338.76
46,335.13
42
21541.57
193.06
21348.51
43,986.63
r
43
2,541.57
183.28
2,358.29
41,628.33
44'
2,541.57
173.45
2,368.12
39,260.21
45
21541.57
163.58
2,377.99
36,882.23
46
2,541.57
153.68
2,387.89
34,494.33
47
2,541.57
143.73
2,397.84
_32,096.49
1.
48
2,541.57
133.74
21407.83
29,688.66
EXHIBIT "A"
94 106
'k�14u'.t;iVlsd.4nw.•..�
-
;trrdbj
LEVEL DEBT
CASH FLOW
.. .__... ..._
CAL ULATOR
.. ,.. _ _... ,. ...,e ,.
*134 679;' 60;
S% APR; t,? 41.577MONTH;
60 MONTHS
L
PAYMENT
-PAYMENT
INTEREST
PRINCIPAL
PRINCINAL
4
NUMBER
AMOUNT
-
AMOUNT
i2EUUCT.
BALANCE
{'
'
49
20541.57
123.70
2,417.87
27,270.79
50
2,541.57_
113.63
-2,427.94
24,842.'85
¢"
51
2,541.57
103.51
2,438.06
220404.79
52
_2,541.57
93.35
2,448.22
19,956.57
53
2,541.57
83.15
2,458.42
17,498.15
54
2,541.57
72.91
2,468 66
15i029.49
55
2,541.57
62.62
2,478.95
12,55055
56
2,541.57
52.29
2,489.28
10,061.27
57
2,541.57
41.92
2i499.65
7,561.62
-58"'
2,541.57
31.51
2,510.06
51031.56
59
2,541.57
21.05
2,520.52
2,531.04
60
2,541.58
10.55
2,531.03
0.00
TOTALS.
152,494.21
17,814.61
134,679.60
'l
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:'I
94- 106
CITY OF MIAMI, FLORIDA
INTER -OFFICE MEMORANDUM
47
Honorable Mayor and Members DATE : r FEB 1994 FILE
of the City Commission
SUBJECT : Agenda Item
FROM Cesar .p REFERENCES
Clty ENCLOSURES
Recommendation:
It is recommended that the attached resolution, with attachment,
be approved authorizing the Director of Finance to pay Transcall
America, Inc., as successor -in -interest of Telus Communications,
Inc., without admission of liability, the principal sum of
$161,655.00, less $26,975.40, plus interest, payable in 60 equal
monthly payments of $2,541.57 each, beginning in March of 1994,'
in full and complete settlement of any and all claims and demands
against the City of. Miami, upon the execution of a settlement
agreement releasing the City of Miami from any and all claims and
demands;. authorizing the City Manager to execute the settlement
agreement, in substantially the attached form, on behalf of the
City of.Miami, with funding of said payments to be deducted from
anticipated future revenues of public service taxes due from
Transcall America, Inca, or its successor -in -interest.
Background
A few years ago Metropolitan Dade County established a
telecommunications utility tax similar to the one the City has.
Subsequently, the County audited Telus Communications to insure
proper remittance of the tax. The audit discovered that Telus
had paid to the City taxes that were actually due to the County.
Telus has paid the County and claimed reimbursement from the City
for overpayment of $317,570.
This settlement approves reimbursement of $161,655.00 by allowing
Telus to make deductions over 5 years from their monthly payment
of the telecommunications tax.
94— 106
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