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HomeMy WebLinkAboutFranklin County PUD Utility Tax Settlement AgreementUtility Tax Settlement Agreement Whereas, Public Utility District No. 1 of Franklin County (the "District') believes it overpaid utility taxes (the "Tax ") to the City of Pasco (the "City") during at least years 2007- 2012; and Whereas, the District believes it is entitled to reimbursement of the net amount of Tax it overpaid the City during years 2010 -2012, together with accrued interest; and Whereas, the City believes it is obligated to reimburse District the overpaid Tax made by the District during year 2012, and that the amount of overpaid Tax must be reduced by the amount of District underpaid Tax during 2012; and Whereas, to facilitate a resolution of the Tax dispute, District and City entered into a Standstill Agreement on March 28, 2013, and additionally entered into a Supplemental to Standstill Agreement on September 11, 2013; and Whereas, pursuant to the Supplemental to Standstill Agreement, an Escrow Agreement dated November 20, 2013 was executed by the parties, and an escrow account was funded by the City in the sum of $162,231.39; and Whereas, the District and City believe it to be in their best interests to resolve all 2007- 2012 Tax claims that have been asserted between them, to terminate the Escrow Agreement, and to disperse the funds being held in escrow; Now Therefore, It Is Agreed, by the District and City that: (1) each of them will receive one -half of the money currently held in escrow, and (2) without admission of any liability, each of them releases the other from any and all liability or claims related to the Tax matter as is more fully described above, representing full satisfaction of all amounts claimed or owing between the Parties relating to the 2007 -2012 Tax. It Is Further Agreed, that Umqua Bank, formerly known as Sterling Savings Bank, is instructed to disperse all escrow funds consistent with the preceding paragraph. Each Party has caused this Utility Tax Settlement Agreement to be signed as of the date written below by its duly authorized representative. 12 Title Print Date PUBLIC UTILITY DISTRICT NO. 1 OF FRANKLIN COUNTY By: 1, Title: Print Name: Date: 1 � r