ORDINANCE NO. 090625

 

Approving a settlement agreement with AT&T/SBC Landline in the amount of $10,705,989.35 and authorizing the City Attorney to execute the necessary documents.

 

WHEREAS, the City of Kansas City, Missouri is 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 State of Missouri, et al. v. SBC Communications, et al., No. 044-02645, and is pending in the Circuit Court of St. Louis City, Missouri (the Lawsuit); and

 

WHEREAS, the City and Defendants (as defined in the Settlement Agreement) wish to avoid the expense and uncertainty of continued litigation and desire to settle their disputes without further litigation; and

WHEREAS, a settlement agreement settling the Lawsuit was signed by the named plaintiffs (as class representatives) and Defendants, and was filed with and preliminarily approved by the Circuit Court of St. Louis City on June 26, 2009 (the Settlement Agreement); and

WHEREAS, the City and AT&T 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 of the parties; and

WHEREAS, pursuant to the Settlement Agreement, the City has received a Notice of AT&T Class Action Settlement and Approval Hearing, incorporated herein by reference, and an AT&T Landline Municipal Tax Settlement Claim Form, incorporated herein by reference, which identify the estimated Back Tax Payment (as defined in the Settlement Agreement) that will be paid and released to the City pursuant to the Settlement Agreement after the Settlement Agreement becomes Final (as defined in the Settlement Agreement); and

WHEREAS, the City desires to approve and accept the Settlement Agreement and the estimated Back Tax Payment; NOW, THEREFORE,

 

BE IT ORDAINED BY THE COUNCIL OF KANSAS CITY:

Section 1. 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 Defendants, and as if the City of Kansas City, Missouri was an original signatory thereto.

 

Section 2. The City of Kansas City, Missouri further approves the estimated Back Tax Payment of $10,705,989.35 as shown on the AT&T Landline Municipal Tax Settlement Claim Form (subject to adjustment as provided by the Settlement Agreement), 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 Defendants.

Section 3. The City Attorney, on behalf of the City, is authorized and directed to execute the AT&T Landline Municipal Tax Settlement Claim Form and any other documents necessary under the Settlement Agreement.

Section 4. This Ordinance shall be in full force and effect after passage and approval as required by law.

 

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Approved as to form and legality:

 

 

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William Geary

Assistant City Attorney