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HomeMy WebLinkAbout1026 - T-Mobile Settlement BILL NO. 2010- 050 ORDINANCE NO. IDaC� AN ORDINANCE APPROVING A SETTLEMENT AGREEMENT WITH T-MOBILE WHEREAS, the City of Riverside Missouri (the "Plaintiff°) 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 City of University City, Missouri, ef al. v. AT&T Wireless, Services, lnc., 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 5t. Louis County on June 28, 2010 (the "Settlement AgreemenY'); 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 BOARD OF ALDERMEN OF THE CITY OF RIVERSIDE, MISSOURI AS FOLLOWS: SECTION 1— APPROVAL OF SETTLEMENT AGREEMENT. The City of Riverside Missouri hereby approves, accepts, and adopts all terms and provisions of the Settlement Agreement as a binding and enforceable agreement between the City of Riverside Missouri and T- Mobile, as if the City of Riverside Missouri was an original signatory thereto. SECTION 2— APPROVAL OF PAST TAX PAYMENT. The City of Riverside, Missouri further approves the payment totaling $2,918.80 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 Riverside Missouri against T-Mobile as provided for in the Settlement Agreement. SECTION 3— EXECUTION BY CITY ADMINISTRATOR. The City Administrator of the City of Riverside Missouri, on behalf of the Plaintiff, is hereby authorized and directed to execute the T- Mobile Municipal Tax Settiement Ciaim Form and any other documents necessary under the Settlement Agreement. 1 i �I BILL NO. 2010- 050 ORDINANCE NO. I O:L�v SECTION 4- RESERVATION OF RIGHTS. The City of Riverside 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- EFFECTIVE DATE, This Ordinance shall be in full force and effect after passage and approval as required by law. BE IT REMEMBERED that the above was read two times by heading only, passed and approved by a majority of the oard of Ald rmen and APPROVED by the Mayor of the City of Riverside, Missouri, this � day of � - , 2010. � . Kathleen L. Rose, Mayor : : � ATTEST: � :�� Robin Littrell, City Clerk APPROVED S TO FORM: N pso , ity A orney 2 ciTY oF �F RIVERSI� � ��.. ��w7..�10..J��.��1.� Upstream frorn ordinory. 2950 NW Vivion Road Riverside, Missouri 64150 MEMO DATE: July 28, 2010 AGENDA DATE: August 3, 2010 TO: Mayor and Board of Aldermen FROM: Nancy Thompson, City Attorney RE: T-Mobile 5ettlement Agreement BACKGROUND: Passage of the ordinance formally approves the settlement agreement with T- Mobile and is required to move forward with the settlement in the telecommunications class action lawsuit previously discussed with the Board. Settlement agreements have previously been approved in the lawsuit with Verizon, US Cellular, AT&T Mobility, Sprint-Nextel and Alltel. As additional background, the City has an ordinance imposing a business license tax in the amount of 5% on gross receipts from the providers of telecommunications services within the City. T-Mobile has agreed to dismiss its tax protest lawsuits and will pay a past due tax from September I, 2005 through August 31, 2007 in settlement of the claims asserted by the cities in the class action lawsuit. T-Mobile will also pay all amounts due to the City going forward after September I, 2007 and all amounts paid in protest or paid into escrow will be released for the unrestricted use of the City. For Riverside, the total amount credited to the benefit of the City under the settlement is $30,864.90. That amount is offset by the sum of $27,946.09, which has previously been paid by T-Mobile to the City, resulting in a cash settlement payment due of $2,918.80. The City will receive the back tax payment within 30 days after the Court enters its final order of dismissal in the case and such order becomes final. Entry of the order of dismissal is anticipated on October I 9`". Payment to the City should be mailed on or before December 29, 2010. RECOMMENDATION: Staff recommends approval of the ordinance.