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Home My WebLink AboutLegislationCity of Miami Legislation Resolution City Hall 3500 Pan American Drive Miami, FL 33133 www.miamigov.com File Number: 07-00890 Final Action Date: A RESOLUTION OF THE MIAMI CITY COMMISSION, WITH ATTACHMENT(S), APPROVING THE SETTLEMENT AGREEMENT AND RELEASE ("AGREEMENT") IN THE CLASS ACTION LAWSUIT WHICH CHALLENGED THE LEGALITY AND APPORTIONMENT METHODOLOGY OF THE CITY'S FIRE/RESCUE ASSESSMENT AND FIRE ASSESSMENT ADOPTED FOR THE PERIOD THAT INCLUDES FISCAL YEARS 1997-1998; 1998-1999; 1999-2000; 2000-2001;2002-2003;2003-2004;2004-2005;2005-2006;2006-2007, IN THE CASES: CARL L. MASZTAL, JOSEPH A. GRAUPIER, JUANA MARTINEZ, AND MARISOL FERNANDEZ, ON BEHALF OF THEMSELVES AND ALL OTHERS SO SIMILARLY SITUATED VS. CITY OF MIAMI, CASE NO. 98-11208 CA 31, OR AS STATED IN CARL L. MASZTAL, JOSEPH A. GRAUPIER, JUANA MARTINEZ, AND MARISOL FERNANDEZ V. CITY OF MIAMI AND THE STATE OF FLORIDA, CASE NO. 05-2117 CA 22, IN THE ELEVENTH CIRCUIT IN AND FOR MIAMI-DADE COUNTY, FLORIDA; AUTHORIZING THE DIRECTOR OF FINANCE, SUBJECT TO FINAL COURT APPROVAL, TO TRANSFER TO EPIQ SYSTEMS, THE CLASS ADMINISTRATOR, THE TOTAL SUM OF $15,550,000 (THE "COMMON FUND"), MINUS ANY ADMINISTRATIVE COSTS ADVANCED BY THE CITY TO THE ADMINISTRATOR FOR DISBURSEMENT IN ACCORDANCE WITH THE TERMS OF THE SETTLEMENT AGREEMENT AND RELEASE THEREBY OBTAINING FULL AND COMPLETE SETTLEMENT OF ANY AND ALL CLAIMS AND DEMANDS AGAINST THE CITY OF MIAMI, ITS OFFICIALS, OFFICERS, AGENTS AND SERVANTS; FURTHER AUTHORIZING THE DIRECTOR OF FINANCE TO TRANSFER A PORTION OF THE COMMON FUND IN AN AMOUNT NOT TO EXCEED $200,000, TO THE ADMINISTRATOR FOR PRINTING, POSTAGE AND PUBLICATION OR OTHER NOTICE COSTS PRIOR TO FINAL APPROVAL OF THE SETTLEMENT BY THE COURT; ALLOCATING FUNDS FROM THE GENERAL FUND -FUND BALANCE. WHEREAS, Carl L. Masztal, Joseph A. Graupier, Juana Martinez, and Marisol Fernandez ("Plaintiffs"), on behalf of themselves and all others so similarly situated, filed claims and lawsuits against the City of Miami ("City"), in the Eleventh Circuit Court in and for Miami -Dade County, Florida, Case Nos. 98-11208 CA 31, and 05-2117 CA 22 ; and WHEREAS, this class action lawsuit filed in 1998 challenges the legality and apportionment methodology of the City of Miami's Fire/Rescue Assessment during the years that it was adopted for Fiscal Year 1997-1998 through Fiscal Year 1999-2000, and the amended Fire Assessment during the years it was adopted for Fiscal Year 2000-2001 through 2006-2007 ("Assessments"); and WHEREAS, the City maintains that the amended Fire Assessment which was adopted beginning in Fiscal Year 2000-2001, and is currently in place, is a legal and constitutional assessment as sanctioned by the Florida Supreme Court because the revenue is used solely for fire capital and services, which confers a special benefit to the assessed property; and City of Miami Page 1 of 4 Printed On: 7/17/2007 File Number: 07-00890 WHEREAS, the Plaintiffs maintain that the City integrates its fire and rescue functions to such an extent that the two functions can not be segregated; and WHEREAS, in light of the uncertainties in any litigation, and the additional cost and time which would be necessary to further litigate these and other issues in a Court of law, the parties have reached an agreement to settle the entire class action case subject to city commission approval and final court approval; and WHEREAS, class counsel, Richard L. Williams, Esq., Michael Garcia -Petit, Esq. and Patrick A. Scott, Esq., have presented the City with an offer to settle the entire class action case, encompassing all claims for all years and on behalf of all class members for $15,550,000 (Fifteen Million Five Hundred Fifty Thousand Dollars), inclusive of attorneys' fees, costs, class representative costs and administrative costs; and WHEREAS, the amount of class counsel attorneys' fees and costs awarded to the class counsel shall be determined solely by the Court; and WHEREAS, the release will encompass the City and all of its current and former officials, officers, agents, representatives, and employees, for any and all claims, including but not necessarily limited to, claims based in negligence and intentional tort, or claims raised in the Third Amended Complaint in Case 05-2117 CA 22; and WHEREAS, the class members include persons and entities, including qualified legal successors, that owned property in the City and paid the Assessments (the "Class"); and WHEREAS, the administrative process, which includes but is not limited to, notice to the class, the process of verifying claims, and the issuance of pro-rata refunds and payment of class counsel fees and administrative costs, shall be performed by epiq systems, a company that specializes in class action administration; (the Administrator); and WHEREAS, the City shall cooperate in any manner requested by the Administrator to provide the necessary information to process and confirm all claims made; and WHEREAS, the currently pending appeals, arising out of the City's Motion to Set Aside Settlement, the March 17, 2006 Order, and the Final Judgment and Amended Final Judgment arising therefrom, to include Case No. 3D06-1259, and Consolidated Case Nos. 3D06-920; 3D06-924; 3D06-947; 3D06- 1046; 3D06-1055; and 3D06-1255, for which an opinion has not yet been issued as of July 16, 2007, will not be impacted by this settlement; and WHEREAS, the Administrator will disburse from the $15,550,000 (the "Common Fund"), as is typical of class settlements, in the following order: (a) first to pay all costs associated with the litigation including class counsel's attorneys' fees and costs and class representative costs, as determined by the Court and all costs associated with the settlement including costs of notice and publication of notice and all fees and costs of the Administrator; (b) second to pay pro rata to any class member who has timely filed a valid request for a refund in accordance with the terms of the Settlement Agreement and Release; (c) the balance if any to the City for the benefit of the Fire Department; and WHEREAS, the City agrees to advance a portion of the Common Fund to the Administrator for the City of Miami Page 2 of 4 Printed On: 7/17/2007 File Number: 07-00890 printing, postage, publication or other notice costs during the preliminary approval period prior to final approval of the settlement by the Court at which time the City shall transfer to the Administrator the Common Fund less any administrative costs advanced; and WHEREAS, the Office of the City Attorney has investigated this claim and lawsuit, as amended, and recommends that said claim and lawsuit be settled for the sum of $15,550,000; NOW, THEREFORE, BE IT RESOLVED BY THE COMMISSION OF THE CITY OF M1AMI, FLORIDA: Section 1. The recitals and findings contained in the Preamble to this Resolution are adopted by reference and incorporated as if fully set forth in this Section. Section 2. The City Commission approves the Settlement Agreement and Release, attached and incorporated, thereby approving and authorizing for submittal to the Court for final approval, the settlement of all claims and any and all challenges or potential claims that the Plaintiffs or the Class may have had or has against the City's current or former officials, employees, officers,' representatives, or agents with regard to the legality and the apportionment of the Assessment established and authorized pursuant to Ordinance No. 11584; Chapter 19.5 of the Code of Miami; and all preliminary, initial and final assessment resolutions adopted for fiscal years 1997-1998; 1998-1999; 1999-2000; 2000-2001; 2001-2002; 2002-2003'; 2003-2004; 2004-2005; 2005-2006 and 2006-2007, including but not limited to the following Resolutions: 98-34; 98-325; 98-419; 98-773; 98-817; 98-885; 99-433; 99-689; 00-669; 00-803; 01-589; 01-818; 02-823; 02-1025; 03-748; 03-1014; 04-0452; 04- 0597; 04-0748; 05-0431; 05-0548; 06-0431; 06-0543 as plead in the cases of Carl L. Masztal, Joseph A. Graupier, Juana Martinez, and Marisol Fernandez, on behalf of themselves and all others so similarly situated vs. City Of Miami, in the Eleventh Circuit Court in and for Miami -Dade County, Case No. 98-11208 CA 31, or as stated in Carl L. Masztal, Joseph A. Graupier, Juana Martinez, and Marisol Fernandez v. City Of Miami and the State Of Florida, Eleventh Circuit Court Case No. 05-2117 CA 22. Section 3. Upon final approval by the Court, the Director of Finance is authorized to transfer to epiq systems, the Class Administrator, the sum of $15,550,000 (the "Common Fund"), minus any administrative costs advanced by the City to the Administrator, to be disbursed in accordance with the terms of the Settlement Agreement and Release, with funds allocated from the General Fund -Fund Balance. Section 4. The Director of Finance is further authorized to transfer a portion of the Common Fund in an amount not to exceed $200,000, to the Administrator for printing, postage and publication or other notice costs prior to final approval of the Settlement by the Court. Section 5. This Resolution shall become effective immediately upon its adoption and signature of the Mayor.{1} APPROVED AS TO FORM AND CORRECTNESS: JORGE L. FERNANDEZ CITY41T� RNEY Footnotes: City of Miami Page 3 of 4 Printed On: 7/17/2007 File Number: 07-00890 {1} if the Mayor does not sign this Resolution, it shall become effective at the end of ten calendar days from the date it was passed and adopted. If the Mayor vetoes this Resolution, it shall become effective immediately upon override of the veto by the City. City of Miami Page 4 of 4 Printed On: 7/17/2007