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HomeMy WebLinkAboutMINUTES - 07212009 - C.113RECOMMENDATION(S): AUTHORIZE Sacramento County Counsel to represent Contra Costa County in settlement negotiations and trial in Metromedia Fiber Network Services, Inc. v. State Board of Equalization, et al., Superior Court of Sacramento, Case No. 34-2007-00882854. FISCAL IMPACT: Sacramento County Counsel has offered to represent the County at no cost in this matter. It is anticipated that the delegation of authority will result in a small amount of savings in transportation and lodging costs, as well as staff time. BACKGROUND: Metromedia Fiber Network Services Inc. (“Metromedia”), the owner and operator of a telephone company, filed a lawsuit in Sacramento Superior Court in late 2007 alleging that the State Board of Equalization, the entity that determines the value of properties such as telephone companies, overvalued its property for the 2003-04 tax year. As required by the statute authorizing this type of lawsuit, Metromedia also named several California counties as defendants, including Contra Costa. APPROVE OTHER RECOMMENDATION OF CNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE Action of Board On: 07/21/2009 APPROVED AS RECOMMENDED OTHER Clerks Notes: VOTE OF SUPERVISORS AYE:John Gioia, District I Supervisor Gayle B. Uilkema, District II Supervisor Mary N. Piepho, District III Supervisor Susan A. Bonilla, District IV Supervisor Federal D. Glover, District V Supervisor Contact: 925-335-1800 I hereby certify that this is a true and correct copy of an action taken and entered on the minutes of the Board of Supervisors on the date shown. ATTESTED: July 21, 2009 David J. Twa, County Administrator and Clerk of the Board of Supervisors By: EMY L. SHARP, Deputy cc: C.113 To:Board of Supervisors From:Silvano B. Marchesi, County Counsel Date:July 21, 2009 Contra Costa County Subject:AUTHORIZATION TO DELEGATE AUTHORITY TO REPRESENT COUNTY IN TAX REFUND LAWSUIT Metromedia BACKGROUND: (CONT'D) seeks a refund of the 2003-04 property taxes that it paid because it claims the State Board of Equalization calculated these taxes based on an over-inflated value of Metromedia’s property. The counties, rather than the State Board of Equalization, must pay any tax refund resulting from the suit since the counties were the recipients of the property taxes. Metromedia seeks a tax refund from Contra Costa of approximately $3,940 of the $4,534 in property taxes that it paid the County for the 2003-04 tax year. The Sacramento County Counsel has agreed to represent other counties named as defendants in this litigation, both in settlement negotiations and (if necessary) in trial. CONSEQUENCE OF NEGATIVE ACTION: If the Sacramento County Counsel is not authorized to represent Contra Costa County in settlement negotiations and trial in Metromedia Fiber Network Services, Inc. v. State Board of Equalization, et al, the County likely will incur expenses related to transportation and possibly lodging costs for counsel and witnesses to appear in Sacramento Superior Court. Additionally, counsel will need to devote continuing time to preparing for and appear at settlement negotiations and trial.