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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). _____________________________________________________________________________________ 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 16.K.7 Packet Pg. 2897 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 16.K.7 Packet Pg. 2898