Item P09
BOARD OF COUNTY COMM:ISSIONERS
AGENDA ITEM SUMMARY
Meeting Date: 3/18/09
Division: County Attorney's Office
Bulk Item: Yes
No -1L-
Staff Contact Person/Phone #: Bob Shillinger x3470
AGENDA ITEM WORDING: Presentation and consideration of settlement proposal in Roy's Trailer
Park, Inc. v. Monroe County, CA K 07-1505.
ITEM BACKGROUND: Roy's Trailer Park, Inc. sued the County seeking a declaratory judgment
which would pennit it to recover and repay over 20 years' time the $278,100.00 in capacity reservation
fees Roy's asserts it paid to Key West Resort Utilities when Roy's connected to KWRU's gravity sewer
system on Stock Island. Roy's claims that it is entitled to amortize those fees over the same 20 year
period as people who connected to KWRU's vacuum system, which was financed in part by the County.
Under its suit, Roy's is seeking damages in the amount of the fees paid to KWRU plus an undisclosed
amount of attorney's fees. In order to settle the suit, Roy's is willing to drop its claim for attorney's
fees if the County agrees to refund the fees and allows Roy's to repay them over time. Staff and the
Utility have taken the position that Roy's was not entitled to amortize these fees because it chose to
connect to KWRU's pre-existing gravity system, not the new vacuum system that was financed by the
County. In short, because the County did not finance the gravity system, it cannot lend money to Roy's
to defer full payment of the fees charged to connect to that system because such a loan would not serve
a valid public purpose.
Roy's settlement proposal is outlined in the attached email from its owner Michael Browning. The
settlement proposal will be the subject of a closed attorney client session on the March 18th meeting.
This item is being placed on the agenda in the event the Board wants to authorize staff to negotiate a
settlement agreement either pursuant to the terms outlined in the attached proposal or pursuant to other
terms acceptable to the Board.
Roy's has filed a motion for summary judgment which is scheduled to be heard on April 1, 2009 by
Judge Audlin.
PREVIOUS RELEVANT BOCC ACTION: None.
CONTRACT/AGREEMENT CHANGES: nfa
STAFF RECOMl\1ENDATIONS: Will be presented at the closed session.
TOTAL COST: $278,100.00 up front to be paid back over time
INDIRECT COST: n/a BUDGETED: Yes _No xx
COST TO COUNTY :$278,100.00
SOURCE OF FUNDS:
REVENUE PRODUCING: Yes
No x
AMOUNTPERMONTH_ Year
APPROVED BY: County Atty _ OI\1B/Purchasing _ Risk Management _
DOCUMENTATION:
Included xx Not Required_
from: Michael Browning [mailto:mbrowning@newmoonmgmt.com]
Sent: Thursday, February 12,200910:14 AM
To: Shillinger-Bob
0;: David D Eastman; Robert Cintron
Subject: Settlement of Roy's Lawsuit
Dear Robert:
I am sending this settlement offer to you and asking that you forward the same to the County
Commissioners in this matter,
I will not dwell too long on the history of this matter, but essentially our position is that the county,
via ordinance, was obligated to extend to us the same rights it extended to others regarding the
impact fees paid to KW Resort Utility. From the beginning our company wanted to hook-up and
did nothing other than tl)' and get hooked up properly. It took years to finally accomplish that
because there was no standardized contract nor did we feel we had the obligation to pay the
impact fees up front. During that time we were sited by Code Enforcement and essentially forced
to pay all the impact fees up front or face ever growing code enforcement fines. Further, the old
county commission agreed to our position and instructed the county attorney to draft a settlement
with our then attorney, Mr. James Hendricks. As Mr. Hendricks' legal challenges pressed on the
agreement got sidelines and when we inquired after his trial we were told that the county
commission had rescinded the resolution based on the "no money" defense. We thereafter paid
all fees, settled with Code Enforcement, removed our old treatment plant and then filed the
current lawsuit in late 2007.
We are not seeking reimbursement for the in excess of $100,000 we paid to remove out plant nor
install the lift station. We are only seeking repayment of the impact fees of $280,000 we were
forced to pay and be given the same 20 year amortization as other residents. Should we settle
we would of course also drop our claim for attorney fees.
As you are aware, despite the economic downturn we are the only mobile home park in the Keys
to commit to a long teon lease with our residents. They each have the assurance of 30 years.
We have cleaned up the park considerably, installed security fencing as well as finishing up on
security gating and cameras. These things costs money and we are committed to the residents
to provide them a clean and safe environment to accomplish this. We are not looking for a hand
out - we are looking only to be treated as others.
I think another aspect ofthis case is that should we get a judgment then there will be a decision
of record which might be used by other developers or parks who paid up front. While they might
not have a case now, they may have one should the county lose. I believe, however, the equities
in our case favor resolution.
To reiterate, I would ask you to please fOlWard this message on to the current commission. I
would also seek your permission to meet and discuss this matter with the current commission.
We have delayed the finally hearing to Aprtl1st per your request and would love to have a
decision before then.
After you have forwarded this on please let me know whether I may contact the commissioners
on this matter.
Thanks,
"The quality of my life is determined by how weill manage my fear."
Michael L. Browning
President
New Moon Management Group, Inc.
402 Appelrouth Lane
Key West, FL 33040
305-293-8888 ex. 1013
Fax - 305-295~2827
mbrownina@newmoonmamt.com