HomeMy WebLinkAboutFranklin Co PUD Standstill Agreement-SupplementalEYO »4:4dil=1ki Ill r_1Mfe�
STANDSTILL AGREEMENT
THIS AGREEMENT entered into this /day of September, 2013, by and between the
Public Utility District No. 1 of Franklin County (the "District ") and the City of Pasco (the "City ")
which is intended to supplement that Standstill Agreement entered into on the 28`" day of
March. 2013.
IN CONSIDERATION of the mutual covenants contained herein, it is agreed between
the parties as follows:
1. Pavment of Claimed Taxes for 2012. The City shall immediately pay to the District the
sum of $81,065.98 as full payment for reimbursement to the District of the net amount of
overpaid utility taxes for the year 2012 constituting that period pursuant to PMC 1.17.020 for
which a claim for refund may be made, and further waive the administrative appeal required
under PMC 1.17.030 for such refund claim. The applicability of PMC 1.17 et al remains the
subject of disagreement between the parties.
2. Pavment of Disputed Amount into Escrow. The City shall deposit into an escrow account
$80,369.36 for the tax year 2010; and $81,862.03 for the tax year 2011, for a total sum of
$162,231.39 ( "Escrow Funds "). These Escrow Funds shall be held in a mutually agreed interest
bearing escrow account and the funds plus interest earned will be disbursed by the Escrow
Agent upon the occurrence of any of the following events:
• Disbursement upon execution of a further written agreement between the City and
the District which directs the Escrow Agent as to how and when the escrow funds are
to be disbursed; or,
• Disbursement to the prevailing party upon a final Washington State Court decision
issued in a lawsuit between the parties that addresses the 1 -year vs. 3 -year statute
of limitations.
Either party continues to have the option of filing a lawsuit against the other party regarding the
statute of limitations applicable to the District's net overpaid utility taxes made to the City in
2010 and 2011, upon the giving of no less than 60 days notice of its intent to do so.
Additionally, when the Escrow Funds are disbursed, the disbursement will include all accrued
interest, which will be in lieu of statutory interest consistent with the terms of the Standstill
Agreement.
3. Escrow. A local financial institution shall be designated by mutual agreement as the
escrow for holding the Escrow Funds, and both parties shall execute such documents
necessary for the establishment of the escrow account. Upon an occurrence which provides for
disbursement of the Escrow Funds to one of the parties as is provided for in this Agreement,
both parties will execute documents necessary for such disbursement of Escrow Funds; and
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further, if either party fails to promptly execute necessary documents when disbursement of
Escrow Funds is warranted, the other party is authorized to seek specific performance and other
relief with the Franklin County Superior Court.
4. All terms and conditions of the Standstill Agreement of March 28, 2013, not inconsistent
herewith, shall remain in full force and effect.
By:
Title:
Print Name
Date:
CITY OF PASCO
PUBLIC UTILITY DISTRICT NO. 1 OF
FRANKLIN COUNTY
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