Agenda 09/11/2018 Item #16K709/11/2018
EXECUTIVE SUMMARY
Recommendation to authorize the County Attorney to opt the County in as a party plaintiff, in the
class-action lawsuit styled Kane County, Utah v. United States, Case Nos. 17-739C and 17-1991C
(Consolidated), to recover a large portion of the $53,117 (approximately $35,058, after offset for
attorney fees and litigation expenses) that was not paid to the County for fiscal years 2015 -2017,
pursuant to the Payments in Lieu of Taxes Act (PILT).
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OBJECTIVE: To authorize the County Attorney to opt the County in as a party plaintiff, in the class -
action lawsuit styled Kane County, Utah v. United States, Case Nos. 17-739C and 17-1991C
(Consolidated), to recover a large portion of the $53,117.00 (approximately $35,058.00 after offset for
attorney fees and litigation expenses) that was not paid to the County for fiscal years 2015 -2017, pursuant
to the Payments in Lieu of Taxes Act (PILT Act).
CONSIDERATIONS: The PILT Act authorizes Federal payments be made to local governments to help
local governments offset losses in property taxes due to non-taxable, Federal lands within their
boundaries. During 2015-2017, Congress elected to not fully fund the program and therefore reduced
payments were made to local governments. A federal lawsuit was brought by Kane County, Utah
alleging the Federal underpayments were a violation of the PILT Act, despite Congress choosing to not
fully fund the program. The Court agreed and ruled that the PILT Act obligated the federal government
to pay eligible units of local government the full amounts, as calculated by the formula set forth in the
Act.
The lawsuit has since been consolidated and other impacted local governments are now able to opt in as
class plaintiffs. To date, 1,031 eligible counties across the nation have opted in, including 15 Florida
counties. Class counsel and counsel for the United States have agreed on the amount of the
underpayment for fiscal years 2015 and 2016 and anticipate agreeing on the amounts for fiscal year 2017.
While not expected, the Court’s decision is subject to appeal.
By opting into the suit, the County will recover approximately $35,058.00 in underpayments, after the
reductions for attorney fees and litigation expenses.
FISCAL IMPACT: Expected recovery of approximately $35,058.00. If the County does not opt in as a
class-action plaintiff and instead pursues recovery through a separate and independent lawsuit, the costs
involved will likely exceed the amount recovered.
LEGAL CONSIDERATIONS: This item has been approved as to form and legality and requires
majority support for approval. -JAK
GROWTH IMPACT: There is no Growth Management Impact resulting from this action.
RECOMMENDATION: That the Board of County Commissioners authorizes the County Attorney to
opt the County in as a party plaintiff, in the class-action lawsuit styled Kane County, Utah v. United
States, Case Nos. 17-739C and 17-1991C (Consolidated).
Prepared by: Jeffrey A. Klatzkow, County Attorney
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09/11/2018
COLLIER COUNTY
Board of County Commissioners
Item Number: 16.K.7
Doc ID: 6643
Item Summary: Recommendation to authorize the County Attorney to opt the County in as a
party plaintiff, in the class-action lawsuit styled Kane County, Utah v. United States, Case Nos. 17-739C
and 17-1991C (Consolidated), to recover a large portion of the $53,117 (approximately $35,058, after
offset for attorney fees and litigation expenses) that was not paid to the County for fiscal years 2015-
2017, pursuant to the Payments in Lieu of Taxes Act (PILT).
Meeting Date: 09/11/2018
Prepared by:
Title: Legal Assistant/Paralegal – County Attorney's Office
Name: Virginia Neet
09/05/2018 2:17 PM
Submitted by:
Title: County Attorney – County Attorney's Office
Name: Jeffrey A. Klatzkow
09/05/2018 2:17 PM
Approved By:
Review:
Office of Management and Budget MaryJo Brock Level 3 OMB Gatekeeper Review Skipped 09/05/2018 2:18 PM
County Attorney's Office Jeffrey A. Klatzkow Level 3 County Attorney's Office Review Completed 09/05/2018 2:21 PM
County Attorney's Office Emily Pepin CAO Preview Completed 09/05/2018 2:24 PM
County Manager's Office Leo E. Ochs Level 4 County Manager Review Completed 09/05/2018 2:29 PM
Board of County Commissioners MaryJo Brock Meeting Pending 09/11/2018 9:00 AM
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