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Legislation #: 100618 Introduction Date: 7/29/2010
Type: Ordinance Effective Date: 8/5/2010
Sponsor: None
Title: Approving a $4,934,449.80 settlement agreement with T-Mobile, authorizing payment to the settlement administrator of $260,000.00; authorizing payment of attorneys’ fees of $289,815.89; and recognizing an emergency.

Legislation History
DateMinutesDescription
7/29/2010 Filed by the Clerk's office
7/29/2010 Referred to Finance and Audit Committee
8/4/2010 Advance and Do Pass, Debate
8/5/2010 Passed

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ORDINANCE NO. 100618

 

Approving a $4,934,449.80 settlement agreement with T-Mobile, authorizing payment to the settlement administrator of $260,000.00; authorizing payment of attorneys’ fees of $289,815.89; and recognizing an emergency.

 

WHEREAS, the City of Kansas City, Missouri (the “Plaintiff”) is either a named plaintiff or a putative class member in a lawsuit to recover unpaid Business License Taxes (as defined in the Settlement Agreement described below), which lawsuit is styled City of University City, Missouri, et al. v. AT&T Wireless, Services, Inc., et al., No. 01-CC-004454, and is pending in the Circuit Court of St. Louis County, Missouri (the “Lawsuit”); and

 

WHEREAS, the Plaintiff and T-Mobile (as defined in the Settlement Agreement) wish to avoid the expense and uncertainty of continued litigation and desire to settle their dispute(s) without further litigation; and

 

WHEREAS, a settlement agreement settling the Lawsuit was signed by the named plaintiffs (as class representatives) and T-Mobile, and was filed with and preliminarily approved by the Circuit Court of St. Louis County on June 28, 2010 (the “Settlement Agreement”); and

 

WHEREAS, the Plaintiff and T-Mobile have conducted an investigation and evaluation of the facts and the law relating to the claims in the Lawsuit and believe that the Settlement Agreement is fair, reasonable, adequate and in the best interest of all the parties; and

 

WHEREAS, pursuant to the Settlement Agreement, the Plaintiff has received a Notice of T-Mobile Class Action Settlement and Approval Hearing, incorporated herein by reference, and a T-Mobile Municipal Tax Settlement Claim Form, incorporated herein by reference, which identify the settlement proceeds that will be paid to the Plaintiff pursuant to the Settlement Agreement after the Settlement Agreement becomes Final (as defined in the Settlement Agreement); and

 

WHEREAS, the Plaintiff desires to approve and accept the Settlement Agreement and the settlement proceeds; NOW, THEREFORE,

 

BE IT ORDAINED BY THE COUNCIL OF KANSAS CITY:

 

Section 1. Approval of Settlement – General Terms. That the City of Kansas City, Missouri hereby approves, accepts, and adopts all terms and provisions of the Settlement Agreement as a binding and enforceable agreement between the City of Kansas City, Missouri and T-Mobile, as if the City of Kansas City, Missouri was an original signatory thereto.

 

Section 2. Approval of Settlement Payment. That the City of Kansas City, Missouri further approves the payment(s) totaling $4,934,449.80 as shown on the T-Mobile Municipal Tax Settlement Claim Form, along with the other relief provided in the Settlement Agreement, as adequate consideration for the release of claims by the City of Kansas City, Missouri against T-Mobile as provided for in the Settlement Agreement.

 

Section 3. Execution of Documents. That the City Attorney of the City of Kansas City, Missouri, on behalf of the Plaintiff, is hereby authorized and directed to execute the T-Mobile Municipal Tax Settlement Claim Form and any other documents necessary under the Settlement Agreement.

 

Section 4. Other Settlements. That the City of Kansas City, Missouri, reserves the right to conclude settlement agreements with other wireless telecommunications service providers in the Lawsuit depending upon the circumstances of each case.

 

Section 5. Settlement Administrator Payment. That as provided in Section IV.A.7 of the Settlement Agreement the City Attorney is authorized to make a payment of $260,000.00 payable to the T-Mobile Municipal Tax Settlement Administrator within 25 days of the Effective Date of the Settlement as defined in the Settlement Agreement.

 

Section 6. Attorneys Fees. That the City Attorney is authorized to expend a sum equal to 6.2% of the recovery from this settlement, which is $289,815.89, for payment of attorneys fees representing the difference between the payment of 18.8% of the fees earned by counsel and paid by T-Mobile and the 25% fee arrangement agreed to by the City, upon receipt of the settlement.

 

Section 7. Estimation of Revenue. That revenue in the additional amount of $549,815.89 is estimated in the following account in the General Fund:

 

11-1000-120000-453300 Wireless Telephone Companies $549,815.89

 

Section 8. Appropriation of Funds. That $549,815.89 is appropriated from the Unappropriated Fund Balance of the General Fund to the following account in the General Fund:

 

11-1000-131517-B-610240 Wireless Telephone Settlement $549,815.89

 

Section 9. Declaration of Emergency. That this ordinance appropriates money and is hereby recognized to be an emergency measure within the meaning of Section 503 of the Charter of Kansas City, and as such shall become effective in accordance with that section.

 

_____________________________________________

 


I hereby certify that there is a balance, otherwise unencumbered, to the credit of the appropriation to which the foregoing expenditure is to be charged, and a cash balance, otherwise unencumbered, in the treasury, to the credit of the fund from which payment is to be made, each sufficient to meet the obligation hereby incurred.

 

 

___________________________________

Randall J. Landes

Director of Finance

 

Approved as to form and legality:

 

 

___________________________________

William Geary

Assistant City Attorney