HomeMy WebLinkAboutMINUTES - 06251996 - C98 ij
TO: BOARD OF SUPERVISORS
Contra
FROM: Phil Batchelor, County Administrator o. ,ju� 's
q, , .t 40 Costa
DATE: June 25, 1996 �• �� County
TSTA.COUK
SUBJECT: Settlement Agreement with GTE
SPECIFIC REQUEST(S) OR RECOMMENDATION(S) & BACKGROUND AND JUSTIFICATION
RECOMMENDATION(Sl:
AUTHORIZE the County Counsel to sign a settlement agreement with GTE Sprint Communications,
the State Board of Equalization and 22 other counties resolving property taxation.
BACKGROUND/REASON(S) FOR RECOMMENDATION(S):.
In 1988, a lawsuit was filed by GTE Sprint Communications for property taxes levied by the State
Board of Equalization and which tax revenue was received by 23 counties. A settlement agreement
was negotiated between, SBE, GTE and the counties in which Contra Costa County's share of one-
time revenue loss is $4,817.
CONTINUED ON ATTACHMENT: _YES SIGNATURE: j `'^
RECOMMENDATION OF COUNTY ADMINISTRATOR—RECOMMENDATION OF BOARD COMMITTEE
—APPROVE —OTHER
SIGNATURE(S):
ACTION OF BOARD ON june 2t), APPROVED AS RECOMMENDED X OTHER
VOTE OF SUPERVISORS
I HEREBY CERTIFY THAT THIS IS A
X
UNANIMOUS(ABSENT --------- 1 TRUE AND CORRECT COPY OF AN
AYES: NOES: ACTION TAKEN AND ENTERED
ABSENT: ABSTAIN: ON MINUTES OF THE BOARD OF
SUPERVISORS ON THE DATE SHOWN.
Contact:Tony Enea,646-4094
ATTESTED June 25 , 1996
PHIL BATCHELOR,CLERK OF
THE BOARD OF SUPERVIS
AND UNT INIST TOR
cc:CAO
JUN-12-1996 17:22 COUNTY COUNSELS' ASSN. 916 4431 8867 P.01/10
County Counsels ' Association
of California
` 1100 K Street Suite 101,Sacramento,California 95814
(916)327-7535 FAX(916)443-8867
FAX 'TRANSMISSION
Number of Pages Including Cover Page 10
Please deliver immediately!
If addressee is not available,
please call (916) 327-7557.
To: Spencer B. Batchelder, Calaveras County
Louis B. Green, E1-Dorado County
Phillip S. Cronin, Fresno County
Richard Stamper, Imperial County
Dennis L. Myers, Merced County
William C. Katzenstein, Riverside County
Carol Boardman, San Joaquin County .:
Richard Karlsson, Alameda County
Dennis Graves, Contra Costa County
Claude Kolm, City and County of San Francisco
Mary Raftery, San Mateo County
Jim Rumble, Santa Clara County
Tom Agin, Orange County
Joan Dowis, Placer County
Kevin Norris, San Bernardino County
Lita O'Neill Blatner, Tulare County
Andy Freeman, San Diego County
Jeff Kuhn, Madera County
Jo Ann Iwasaki, Solano County
Vern Seeley, Stanislaus County
John Seyman, Sacramento County
Al Ramseyer, Los Angeles County
John Gallagher, Kern County
From: Ruth Sorensen
Date: June 12, 1996
Subject: GTE SPRINT SETTLEMENT AGREEMENT
Following please find the completed Settlement Agreement in GTE Sprint Communications
JUN-12-15'�b 1'( Gc IUUNIY LUUPJ_-ELS' H'_bH. J1b 445 JbG( N.17c/147
-Olt
Corp. V County of Alameda, et al. The agreement consists of six pages plus a counterpart signature
page and a one-page"Exhibit A". The text of the Agreement is substantially identical to the draft
sent to you earlier.
Exhibit A was prepared by the State Board of Equalization and contains information on the
1996 role both in valuation and tax dollars. To the extent possible,the SBE staff has maximized
counties' ability to offset against the 1996 role. In some instances the entire amount of the refund
could be offset. In others it was necessary to require a refund in addition to the offset. Please check
the exhibit carefully to determine the impact on your county. The figures sent to you earlier were
based on an estimate using the 1995 tax role because the 1996 figures were not then available. If
you have may questions about this, please call me and I will explain or put you in touch with
someone who can.
I realize that Exhibit A is in very small type and may be difficult to read from a FAX. For this
reason,I am mailing you separately a bard copy of the Exhibit as well as some of the backup work
sheets prepared by the SBE in case you want to make extra copies.
If your county wishes to join in this settlement, it will be necessary to return the counterpart
signature page to me by mail signed by the person in your county who has the authority to do so.
In addition to the signature,please fill in the name of the county,the date and the title of the person
signing. The signature page should be mailed back to-me so that I receive it no later than June 20.
(Get it to me sooner if you can.)
Thank you for your cooperation in helping us to obtain the most advantageous settlement
possible for counties.
2
JUN-12-19yb 1 (--ZG WUH I Y LUUNJtLJ H'D�N. ':)1b 44,5 bbb( F .U,j 1d
5E_TT E-MENTAOREE'NE
This SETTLEMENT AGREEMENT is made and entered into by and between
GTE SPRINT COMMUNICATIONS CORP., formerly known as Southern Pacific
Commurucations Company, and its successors in interest(hereinafter collectively referred
to as"GTE'), and the STATE BOARD OF EQUALIZATION OF THE STATE OF
CALIFORNIA(hereinafter"SBE"), and the COUNTIES OF ALAMEDA,
CALAVERAS, CONTRA COSTA, EL DORADO, FRESNO, IMPERIAL, KERN, LOS
ANGELES, MADERA, MERCED, ORANGE, PLACER, RIVERSIDE,
SACRAMENTO, SAN BERNARDINO, SAN DIEGO, SAN FRANCISCO, SAN
JOAQUIN, SAN MATEO, SANTA CLARA, SOLANO, STANISLAUS, and TULARE
(hercinafter collcctively referred to as the"Counties").
HECITALS
WHEREAS, on or about June 14, 1988, GTE filed an action entitled
Co -GaboniCornu.CgZU f.� Alam_ed& et al. (San Francisw Superior Court No.
893198) over property taxes that were assessed by the SBE on GTE property and levied
by the Counties for fiscal years 2983 and 1984; and
WHEREAS, this action resulted in an appellate court decision entitled SIE
Svdat C ammunications Com_ v- Cgu=of AlamccL(1994)26 Cal.AppAth 992, in
which the Courtof Appeal directed the Superior Court to remand the matter back to the
SBE for a rehearing on the assessed values of GTE's property for 1983 and 1984 in a
1
JUN-12-1'JJb IY:2.D WUN I Y WUfJbEL'� HbbN. 'alb 445 bob r t .u4/lu
manner consistent with the views expressed by the appellate court;and
WHEREAS,at the tehczring on October 26, IW5,the SBE adopted revised
assessed values pursuant to an agreement reached between GTE and the SHE staff; and
WHEREAS,a dispute has arisen between GTE and the Counties regarding the
amount of prejudgment interest to which GTE is legally entitled on the amount of tax
refund resulting from the reduction in assessed values determined by the SBE upon
rehearing; and
WHEREAS,the parties wish to resolve their dilierenc es and termiinate the
litigation according to the terms and conditions hereinafter stated, which settlemem is
without adjudication of any issue of fact or law and without any admission of liability or
concession on the part of any party, but is a compromise only;
NOW,THEREFORE, the Parties agree as follows:
I. In consideration of the covenants and release curtained herein,the Counties
agree to refund tax monies, including interest, in the tvtai amount of$2,300,000.00
according to the allocation schedule in Exhibit A, which exhibit is attached hereto and
fully incorporated herein by this reference. Exhibit A is an allocation of the total refund
amount including interest dere from each County defendant concurred in by the pasties.
Each allocated share shaU be entered as a Judgment against each County defendant and,
- except as provided in Paragraph 4 relating to postjudgment interest,tiv County shall be
liable for any amount in excess of the allocated amount set forth for that individual
County in Exhibit A.
2
TOTAL P.003
UN-12-199b 17=2J COUNTY COUNSELS' PS-SH. .9ib 443 886r F,-05/10
2. To the extent possible,the SBE shall apply the refimd amounts,convected
to an assessed dollar figurc, as an offset against each defendant county's allocated share
of the 1996-97 assessed value on property assessed by the SBE to GTE, or to a G fE-
related company as directed by GTE. The amount of such offsets are indicated in Exhibit
A. For those Counties in which no offset is available,or the offset will only partially
cover the County's refund share, the Counties shall have until September 30, 19%,to
make the refunds required herein.
3. For those counties malting refund payments, a payment deposited in the
U.S. Mail and postmarked on or before September 30, 19% shall constitute timely
payment for purposes of this agreement.Any and all refund payments shall be by warrant
made payable to GTE Sprint Communications Corporation and addressed c/o Richard N.
Wiley, Attorney at Law, 103 East Blithedale Avenue, Suite 3,Mill Valley,California
94941.
4. Post Judgment irtemt on any amotmts which remain unpaid on or after
October 1, 1996 shall accrue at the rate of 7 percent(7%)per annum,provided that
interest shall Hoot accrue on amounts which are offset against GTE's 1996-97 taxes under
the terms of thins Agrecmcut.
5. This Settlement Agreement does not prevent any County which is u nabie to
pay the amount owed by September 30, 19%or make an offset according to the terms
stated herein from entering a separate agreement with G7 E setting forth a mutually
acccptable payment plan. Any such agreement shall be separately executed by and
between the affected parties and shall supersede the payment teams outlined Herein.
3
JUN-12-1996 17:23 COUNTY COUNSELS' ASSN. 916 443 8867 R.06/10
Subject to GTE's right to object to a county's claim of financial hardship, this Agreement
does not waive any county's tight to apply to the court for payment relief under the terms
of California Govemmcnt Code section 970.6 provided that the county can satisfy the
criteria set forth in that section.
6. In consideration of the Counties' refimds described herein, GTE agrees to
accept said amount as full satisfaction fvr any and all outstanding claims, interest,
reftmds, fees, charges, costs and attorney's fees which GTE claims is due and owing
under the lawsuit entitled GTE Wnt CMmuni.=CM._Y- COMM of AlaMgda_ et
Al,,,(San Francisco Superior Court No. 893198), and GTE does here fully, finally and
forever remise, discharge and release the Counties, their officers, agents and employees
from and against any and all claims, demands, liabilities, obligations, damages or choses
in action, legal or equitable, of whatsoever kind or nature, in which GTE, its
predecessors)in interest and its successors in interest now may have or assert, or may
have had in the past or may have in the future against the Counties as the result of; based
upon, arising out of or connected with any act, deed, conduct, operation, incident,
omission, occurrence, matter or thing alleged or stated by Releasor in regards to the
aforementioned lawsuit. GTE warrants that it has the power and authority to enter into
this Settlement Agreement on behalf of itself, its predecessor(a) in interest, any
successors in interest and any person or entity which may have rights to receive the
refunds of taxes under the aforementioned lawsuit. GTE agrees to indemnify and save
and hold harm€css SBE and the Counties from any liability, claims, expense, demand,
damage or cause of action of any kind or character asserted by any person or entity
4
.SUN-12-1996 17:24 COUNTY COUNSELS' ASSN. 916 443 8867 P.07/10
claiming rights under this Agreement or under the aforementioned lawsuit.
7. The parties hereby authorize their respective couzrsel to exeeeKe whatever
form of documentation is necessary or required to terminate the aforementioned action,
including but not limited to a Satisfaction of Judgment.
8. The parties shall bear their own legal fees, court costs, and other expenses
incurred in the aforementioned lawsuit; including any legal fres or costs incurred in
finalizing this Settlement Agreement.
9. The parties acknowledge that, in executing this Settlement Agreement, they
are relying solely upon the legal advice of their respective attorneys and that they have
not relied on statements of any other attorneys or other persons acting on behalf of the
other parties hcrcut
10. This Settlement Agreement may be executed in counterparts, each of which
shall be deemed an original, but all of which together shall constitute one and the sartre
agreement.
11. This Settlement Agreement shalt be binding only upon execution by all
Parties hereto on or before Jure 21, 1996 at 5:00 p.m., provided however, that if an of the
Counties do not approve this Settlement Agreement on or before said date, then upon
execution or approval of tt»s Settlement Agreement by any number of Counties which
aggregate at least 51%of the total cash refunds specified in Para"h 1 above, as
allocated in Exhibit A, (e.g., $1,173,000.00), and upon execution or approval of this
Settlement Agreement by at least 15 Couri ies that have payments due hereunder, prior to
June 21., 1996 at 5:00 p.m., the proposed setfie meat shall be deemed approved.
s
`JUN-12-1yy6 17:24 COUNTY COUNSELS' H`JSI`I. 916 443 8867 P.08/10
IN WITNESS WHEREOF,the parties hereby execute this settlement
agm-emeut and release as follows:
Dated: GTE SPRINT COMMUNICATIONS CORP.
BY:
TITLE
Dated: STATE BOARD OF EQUALIZATION
BY:
TITLE
L:1Cr_CAS"y, 8MOB"ETAGMT"D
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-JUI'J-lc-1'yyb 1 (-c4 WUN l T WUlAbLL5Hbb[A, 'Jib 44..3 bbb f t- .01j/1U
C
COUNTERPART SIGNATURE PAGE
SETTLEMENT AGREEMENT
GIE SPMNTOnKAUNS-CORE,
COUNTY OF A M" ETAL
San Frandsco Superior Court Case No. 893198
DATE- COUNTY OF:
BY:
TITLE
TOTAL P,OQ?
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Exhibit A
TOTAL P. 10