HomeMy WebLinkAboutItem A2
BOARD OF COUNTY COMMISSIONERS
AGENDA ITEM SUMMARY
Add on by Unanimous Consent
Meeting Date: July 13.2010
Division: Coun~ Attorney
Bulk Item: Yes
No~
Staff Contact PersonlPhone #: Bob Shillinger. 292-3470
AGENDA ITEM WORDING: Approval of settlement terms with Orbitz in the matter of County of
Monroe v. Priceline. com, et aI, 09-10004-CIV and authorization for County Attorney or her designee
to execute any and all settlement documents.
ITEM BACKGROUND: The County filed suit against Priceline.com, Travelocity, Orbitz, Expedia,
and their subsidiaries to collect the tourist development tax (TDT) on the difference between the price
for which the online travel companies (OTCs) paid hotels to reserve rooms (wholesale rate) and the
price which the OTCs charged consumers for the rooms (retail rate). Earlier this year, the Court
certified the case as a class action with Monroe County being the class representative for all Florida
counties with TDTs. Thirty three of the 59 Florida counties with TDTs elected to stay in the class.
On 6/16/10, the parties engaged in mediation as ordered by the Court. On 6/29/10, the BOCC
approved settlement terms with Priceline, Travelocity, and Expedia but not the Orbitz group of
defendants. A tentative settlement with Orbitz has been reached where Orbitz will pay the class a total
of $325,000.00. Monroe County's portion of that amount would be just over $100,000.00. The
settlement includes a covenant not to sue Orbitz for the TDT for the next two years.
As with others, this settlement is intended to compromise disputed claims. Orbitz and the other online
travel companies are not admitting to any liability for any taxes claimed in the litigation. Any payments
received by the County under the settlement of this lawsuit are not payment of past or future tax.
PREVIOUS RELEVANT BOCC ACTION: On 2/21/07, BOCC authorized retaining outside counsel
filing of action to collect TDT's against online travel companies. On 5/19/1 0, BOCC authorized closed
session for 6/16/10. On 6/16/10, BOCC rescheduled closed session for 6/29/10. On 6/29/10, BOCC
approved settlement with other OTC's. On 7/6/10, BOCC authorized closed session for 7/13/10 at
1:30 pm.
CONTRACT/AGREEMENT CHANGES:
STAFF RECOMMENDATIONS: Approval.
TOTAL COST:
COST TO COUNTY:
INDIRECT COST: BUDGETED:
SOURCE OF FUNDS:
REVENUE PRODUCING: Yes AMOUNT@ $100,000 less costs and fees.
APPROVED BY: County Atty _ OMBlPurchasing _ Risk Management _
DOCUMENTATION:
NONE AT TIllS TIME.
DISPOSITION:
AGENDA ITEM # '-F, ?-