HomeMy WebLinkAboutR-78-0255MEA/s
3/29/78
RESOLUTION NO, 7 8 "` 5 5
A RESOLUTION AUTHORIZING THE PAYMENT OF $1,807
FROM THE GENERAL FUND, SPECIAL PROGRAMS AND
ACCOUNTS, CONTINGENT FUND TO PHILLIPS PETROLEUM
COMPANY IN SETTLEMENT OF A DISPUTED CLAIM FOR
PROPERTY TAXES.
WHEREAS, Phillips Petroleum Company and the City of Miami
entered into a lease on October 15, 1968; and
WHEREAS, the City agreed that the rent paid would be in
lieu of taxes; and
WHEREAS, in error, Phillips paid said taxes on the property
in the amount of $3,614; and
WHEREAS, as a result of a controversy over the City's
right to retain the aforesaid payment, the City Attorney has
recommended, pursuant to an agreement with the Phillips Petroleum
Corporation representative, that a compromise be approved whereby the
City would retain one-half of the payment received and return the
remaining one-half, the sum of $1,807;
NOW, THEREFORE, BE IT RESOLVED BY THE COMMISSION OF THE
CITY OF MIAMI, FLORIDA:
Section 1. The payment of $1,807 from the General Fund,
Special Programs and Accounts, Contingent Fund to Phillips
Petroleum Company in settlement of a disputed claim for property taxes
be, and the same is hereby approved.
PASSED AND ADOPTED this 7th day of April , 1978.
Gt� '- . C52'
TY CLERK
PREPARED AND APPROVED BY:
Kd1iNl' . F. CLARK ,, , { ;i
ASSISTANT CITY ATTORNEY u�t1"�'�`'`� `fJ
ITEM MO._
APPRO D AS TO FORM AND CO
GEOR _ F. KN , JR.
CITY ATTORN
SS:
Maurice A. Ferre
MAYOR
BUDGETARY REVIEW:
RV, GAR D RECTOR
DE,'ARTMENT OF MANAGEMENT
ND BUDGET
CITY CQMMISSIQN 1
MEETING OF
APR/ 1978
1�I�IR1l. �N..'.• T�.. •.ff�•
OP,OV*411111
88
CITY _{' !ItIA1,11. t LOI2IDA
!Ntt.7;•OFt-lCr.t. MrEtAORAtIDDt:M1
FROM!
Joseph R, Grassie
City Manager
Howard V, Gary, Director
Department of Management & Budget
March 29, 1978
Proposed Resolution to settle
claim with Phillips Petroleum
Company
a'EFCRE4CF.S7
Phillips Petroleum Company entered into a lease with the City
of Miami on October 15, 1968, wherein it was agreed that
rent paid would be in lieu of taxes. In error, Phillips paid
the City taxes on the property in the amount of $3,614. When
the error was discovered, Phillips sought to recover the full
amount.
The City Attorney disputed Phillips Petroleum Company's claim,
pointing out that after the lease was entered into, a new
statute came into effect providing for taxation of leasehold
interest of municipally owned property leased by a private
corporation. In addition, the City Attorney maintained that a
provision in the lease did not specifically cover leasehold
taxes and, therefore, advised Phillips Petroleum that the City
of Miami planned to retain these funds. As a result, the City
Attorney and the Phillips Petroleum Company representative
agreed upon a settlement of 50% based on an estimate that legal
fees and costs would amount to approximately one-half of the
disputed funds.
The attached proposed Resolution would authorize the City Attorney
to consummate the aforesaid agreement, refunding the sum of
$1,807. to the Phillips Petroleum Company from the General Fund,
Special Programs and Accounts, Contingent Fund.
HVG/s
Resolution attached.
7 8 - 255