Item E2
BOARD OF COUNTY COMMISSIONERS
AGENDA ITEM SUMMARY
Meeting Date:
JUNE 15, 2000
Division: TDC
Bulk Item:
No
Department:
N/A
AGENDA ITEM WORDING:
Consideration of payment in an amount not to exceed $11,953.32 for invoices submitted for WomenFest '98.
ITEM BACKGROUND:
PREVIOUS RELEVANT BOCC ACTION:
BOCC entered into an agreement with Starfire Unlimited, Inc. on November 12, 1997 to produce Women Fest
Key West on September 7 - 13, 1998 in the amount of $25,000 (budget year FY 1998)..Event coordinator
submitted a total of $13,046.68 in expenses prior to FY 98 year end. Event coordinator recently submitted
invoices to the Finance Dept. against this agreement. Due to the length of time and the fact there is no
allocation in the FY 2000 budget, Mr. Danny Kolhagerequested that the TDC and BOCC approve the
allocation of the remaining funds. Within the agreement it states "Monroe County's performance and
obligation to pay under this agreement is contingent upon an annual appropriation by the BOCC". Assistant
County Attorney Hutton advised the TDC that although the County could reply on this language in denying
payment, there is considerable case law governing equitable principles requiring payment for services rendered
even if there is language such as this in a contract. Thus payment is due to the contractor providing appropriate
backup required by the Finance Dept. was provided. However, the TDC noted that the fact that the contractor
was aware of the budget year end and the allocation was not brought forward to the FY 2000 budget and due to
the length of time that has past, the TDC declined to recommend payment.
STAFF RECOMMENDATION:
APPROV AL NOT RECOMMENDED BY THE IDC
TOTAL COST: $11,953.32
BUDGETED: NO
COST TO COUNTY: $ 11,953.32
/TOURISTPAY
APPROVED BY: County Attorney
OMB/Purchasing_ Risk Management
Lynda M. Stuart
(Type/print name)
DOCUMENTATION: Included: /To Follow: _Not Required
~~
DIVISION APPROVAL:
Agenda Item # 02-E't!L,
MEMORANDUM
FROM:
Harold Wheeler, Tourist Development Council
Suzanne A. Hutton, Assistant County Attorney m-
April 24, 2000
TO:
DATE:
RE:
Payment for Women Fest September 1998.
I have reviewed the funding agreement entered into between the County and
Starfire Unlimited, Inc. November 12, 1997, as well as the pertinent statute of
limitations. The statute of limitations would not preclude Starfire Unlimited, Inc.
from filing a successful lawsuit for further payment under the contract.
Accordingly, the issues which need to be resolved at this time concern ~!Ie
documentation provided to support payment by the County and obtaining-=an
appropriation by the SOCC.
Since this event occurred in fiscal year 1998, and it is now April 2000, we are
currently in the second fiscal year following the fiscal year during which the event
concluded. Understandably, the unexpended dollars from that allocation became
part of the 1999 fiscal year budget and the particular money from which the
allocation was made is no longer available. The County's obligation to pay is
limited under the contract by the last sentence of paragraph 1, to wit
"Monroe County's performance and obligation to pay under
this agreement is contingent upon an annual appropriation by
the SOCC."
However, that paragraph assumes that the Contractor Services may not be
completed during the current fiscal year, not that the County could refrain from
carrying forward the balance of the original allocation into the budget of the
subsequent fiscal year to pay for services already rendered. The phrase could
allow early termination of services remaining to be rendered if no appropriation is
made.
I assume that there was no appropriation made in either fiscal year 1999 or
2000 for payment on this contract. Although the County could rely on this
language in denying payment, there is considerable case law governing
equitable principles requiring payment for services rendered even if there is
language such as this in a contract. The Courts frown even greater on a large
more powerful entity utilizing, or trying to utilize, technicalities in a contract to
avoid paying far services rendered.
Accordingly, if Starfire Unlimited, Inc. has appropriate documentation to
support reimbursement for the production of Women Fest Key West in
September 1998, payment should be made, even if it requires a new
appropriation or budget amendment by the SOCC.
Please call if you have any questions.
SAH/ak
cc: Danny Kolhage, Clerk of the Courts
'.
"
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