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Regular Agenda Item 4. B.

Regular BOS Meeting

Meeting Date:	08/20/2018
Submitted For:	James Menlove	Submitted By:	Sherry Grice, Management Associate
Department:	County Manager

Information

Request/Subject

Authorization to join pending Class Action Lawsuit, Kane County, Utah v. United States, to recover underpaid 2015-2017 PILT payments.

Background Information

The Court of Federal Claims, in the case of Kane County, Utah v. United States, Case Nos. 17-739C and 17-1991C, has directed sending an opt-in notice to a Class made up of "All units(s) of general local government," as defined in 31 U. S. C. § 6901(2), that received payment under 31 U. S. C.§ 6902(a) of the Payment in Lieu of Taxes Act (PILT Act) in fiscal years 2015, 2016, and/or 2017."

From 2015-2017, Payment in Lieu of Taxes (PILT) recipients did not receive the full amount to which they were entitled under federal PILT statute. As a result, Kane County, Utah filed a lawsuit seeking to recover its own underpayments and underpayments of all other PILT recipients in those years.

The U.S. Court of Federal Claims ruled in Kane County's favor and certified the lawsuit as a class action. An official notice was mailed out on June 19th to all PILT recipients; the Court named Smith Currie & Handcock, LLP as Class Counsel to represent all members of the class. The Lawsuit seeks to recover monies that the Court has determined that the federal government owes each Class Member for the underpayment of its respective PILT Act entitlement in fiscal years 2015-17.

Evaluation

Gila County would be entitled to approximately $91,904 in PILT payments for 2015-2017.

As a Class Member participating in the lawsuit, Gila County would be represented by Class Counsel, who will take all actions necessary to protect our rights. We will receive the benefit of, and be bound by, all rulings, orders, judgments entered, or settlements approved by the Court, whether favorable or unfavorable. There will be no out-of pocket expenses in the case.

Conclusion

By submitting a Class Action Opt-In Notice, we are asking to be included in the Lawsuit, receive any PILT Act underpayments recovered in the Lawsuit, and be bound by its results. We acquire rights to any money that the Court determines that we are due as a result of underpayment, in fiscal years 2015-2017, of our entitlement under Section 6902 of the PILT Act.

Recommendation

It is recommended that the Board of Supervisors complete and submit a Class Action Opt-In Notice to receive any PILT Act underpayments recovered in the lawsuit.

Suggested Motion

Information/Discussion/Action to authorize joining pending Class Action Lawsuit, Kane County, Utah v. United States, to recover underpaid 2015-2017 PILT (Payment in Lieu of Taxes) payments and to submit a Class Action Opt-In Notice. (James Menlove)

Attachments
Kane County, Utah vs. United States, Case Nos. 17-739C & 17-1991C
Official Notice Class Action PILT Lawsuit
CSA Email 6-19-18_estimated PILT payouts
Counties who have Opted-In