Submitted By: Emory Roberts
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Presentation By: Emory Roberts
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Department: Finance
STAFF RECOMMENDATION (Motion Ready):
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Approve additional contract expenditures with The Notice Company, Inc. for claims administration services in the amount of $54,646
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OCALA'S RELEVANT STRATEGIC GOALS:
Fiscally Sustainable
PROOF OF PUBLICATION:
N/A
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BACKGROUND:
On February 20, 2014, Class Representatives filed a class action lawsuit against the City challenging the City's Fire Fee as an unconstitutional tax imposed in violation of Article VII, Section 1(a) of the Florida Constitution.
On February 11, 2022, the court approved a Class Notice of Final Hearing to distribute refunds, attorney's fees, costs, and class representative service awards. The city was required to mail the Notice of Final Hearing to each class member within 30 days. A contract was requested with The Notice Company, Inc. for a Class Action Notice (the "Original Contract") with a maximum initial expenditure of $50,000 to meet this requirement.
Council approved an extended engagement of The Notice Company, Inc. for Claims Administration services on May 17, 2022, with a maximum contract value of $200,000 (referred to as the "First Amendment").
On December 20, 2022, the Council approved additional contract expenditures of $275,000 for continued engagement of The Notice Company, Inc. up to a maximum contract expenditure amount of $475,000. This expenditure ceiling was established based on estimates of future services.
On February 9, 2024, the City assumed responsibility for the re-issuance of first distribution refunds. The City and The Notice Company agreed to a reduction of services and fees for 180 days to cover outstanding checks issued by the Notice Company and to complete the reconciliation during August 2024.
FINDINGS AND CONCLUSIONS:
As of October 1, 2023, the City has spent $54,645.25 on contract expenditures for claims administration services with Th...
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