TO: Board of Supervisors
FROM: Sheryl L. Bratton, County Counsel
REPORT BY: Thomas C. Zeleny, Chief Deputy
SUBJECT: Amendment No. 1 to Agreement No. 240267B with Colantuono, Highsmith & Whatley, P.C., for legal services in Pacific Bell Telephone et al. v. County of Napa.
RECOMMENDATION
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Approve and authorize Amendment No. 1 to Agreement No. 240267B with the law firm of Colantuono, Highsmith & Whatley, P.C., for continued legal services and representation at the Court of Appeal in Pacific Bell Telephone et al. v. County of Napa. (Fiscal Impact: $60,000 expense; General Fund; County Counsel; Not Budgeted; Discretionary)
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BACKGROUND
Various telecommunications companies ("companies") filed lawsuits in Napa County Superior Court alleging that the County improperly rejected their claims for partial refunds of property taxes for fiscal years 2014-2015 through 2022-2023. The companies have filed similar claims in counties across California, based on their legal theory that the unitary tax rate used to calculate the tax on their properties violates the California Constitution. The companies acknowledge the County is following State law. They complain that State law violates the California Constitution. The companies' claims were litigated in Santa Clara County, resulting in a published appellate court decision sustaining that county's demurrer and denying the companies' claims for refunds.
Napa County entered into a series of tolling agreements with the companies, which dismissed three cases without prejudice and tolled other refund claims prior to filing litigation. The total amount of refund claims filed with Napa County that are currently tolled is $3,159,514.10 and will continue to grow with each tax year.
Napa County and the companies are litigating additional refund claims in case number 23CV001211, where they seek a combined $945,015.13 in refunds plus interest. The parties entered into a stipulated judgment in Napa County's favor because the trial...
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