J. Thomas Zaber vs. City of Dubuque - Franchise Fees Litigation_Disbursement Resolution Copyright 2014
City of Dubuque Action Items # 7.
ITEM TITLE: J. Thomas Zaber vs. City of Dubuque - Franchise Fees
Litigation
SUMMARY: City Manager recommending that the Mayor and City
Council designate any remaining funds following distribution
from the Settlement Fund from J. Thomas Zaber vs. City of
Dubuque franchise fee litigation be used to reduce the
principal of the Judgment Bond.
RESOLUTION Providing that any unclaimed funds in the
escrow account from the Franchise Fee Class Action
Settlement in Zaber V. City of Dubuque be used for
payment of the Judgment Bond
SUGGESTED DISPOSITION: Suggested Disposition: Receive and File; Adopt
Resolution(s)
ATTACHMENTS:
Description Type
Zaber Refund Resolution-MVM Memo City Manager Memo
Staff Memo Staff Memo
Resolution Resolutions
THE CITY OF Dubuque
UBE I
erica .i
Masterpiece on the Mississippi 2007-2012-2013
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: J. Thomas Zaber vs. City of Dubuque (Franchise Fees Litigation)
DATE: December 17, 2015
The City of Dubuque, Iowa and J. Thomas Zaber entered into a Settlement Agreement
on behalf of the class of all persons who were gas and electric customers who paid
franchise fees to Interstate Power Company (Alliant Energy Company), Peoples Natural
Gas (Aquila, Black Hills Corporation) and Maquoketa Valley Electric Cooperative for the
period between September 5, 2001 and May 25, 2009. The Settlement Agreement was
approved by the Iowa District Court for Dubuque County on August 28, 2015.
The Settlement Agreement requires the City to cause to be paid into an Escrow Account
as the Settlement Fund the sum of$2,600,000 for distribution of refunds of franchise
fees to gas and electric customers. To fund the Settlement Fund the City will issue a
judgment bond.
City Attorney Barry Lindahl advises that in the event that there are funds remaining in
the Settlement Fund after all distributions and all other costs required to be paid out of
the Settlement Fund, the Court will decide whether the funds will be returned to the City
or distributed to the State of Iowa or a charity.
I respectfully recommend that the Mayor and City Council designate any remaining
funds be used to reduce the principal of the judgment bond.
z � k�4
Mic ael C. Van Milligen
MCVM:jh
Attachment
cc: Barry Lindahl, City Attorney
Ivan Webber, Esq.
Cindy Steinhauser, Assistant City Manager
Teri Goodmann, Assistant City Manager
Jennifer Larson, Budget Director
HE CITY OF
DUB
E MEMORANDUM
Masterpiece on the Mississippi
BARRY LINDAHL
CITY ATTORNEY
To: Michael C. Van Milligen
City Manager
DATE: December 17, 2015
RE: J. Thomas Zaber vs. City of Dubuque (Franchise Fees Litigation)
As you know, the City of Dubuque, Iowa and J. Thomas Zaber entered into a Settlement
Agreement on behalf of the class of all persons who were gas and electric customers
who paid franchise fees to Interstate Power Company (Alliant Energy Company),
Peoples Natural Gas (Aquila, Black Hills Corporation) and Maquoketa Valley Electric
Cooperative for the period between September 5, 2001 and May 25, 2009. The
Settlement Agreement was approved by the Iowa District Court for Dubuque County on
August 28, 2015.
The Settlement Agreement requires the City to cause to be paid into an Escrow Account
as the Settlement Fund the sum of $2,600,000 for distribution of refunds of franchise
fees to gas and electric customers. To fund the Settlement Fund the City will issue a
judgment bond.
In the event that there are funds remaining in the Settlement Fund after all distributions
and all other costs required to be paid out of the Settlement Fund, the Court will decide
whether the funds will be returned to the City or distributed to the State of Iowa or a
charity.
The City Council may want to consider how the funds will be used if the funds are
ordered returned to the City by the Court. One option would be to use the funds to
reduce the principal of the judgment bond. A resolution to that effect is attached.
BAL:tIs
Attachment
cc: Ivan Webber, Esq.
F:\USERS\tsteckle\Lindahl\Zaber,J.Thomas vs.City\MVM_ResolutionPaymtOfJudgmentBond_121715.doc
OFFICE OF THE CITY ATTORNEY DUBUQUE, IOWA
SUITE 330, HARBOR VIEW PLACE, 300 MAIN STREET DUBUQUE, IA 52001-6944
TELEPHONE (563)583-4113/FAX (563)583-1040/EMAIL balesq@cityofdubuque.org
RESOLUTION NO. 441-15
PROVIDING THAT ANY UNCLAIMED FUNDS IN THE ESCROW ACCOUNT FROM
THE FRANCHISE FEE CLASS ACTION SETTLEMENT IN ZABER V. CITY OF
DUBUQUE BE USED FOR PAYMENT OF THE JUDGMENT BOND
Whereas, the City of Dubuque, Iowa and J. Thomas Zaber entered into a
Settlement Agreement on behalf of the class of all persons who were gas and electric
customers who paid franchise fees to Interstate Power Company (Alliant Energy
Company), Peoples Natural Gas (Aquila, Black Hills Corporation) and Maquoketa Valley
Electric Cooperative for the period between September 5, 2001 and May 25, 2009; and
Whereas, the Settlement Agreement was approved by the Iowa District Court for
Dubuque County on August 28, 2015; and
Whereas, the Settlement Agreement requires the City to cause to be paid into an
Escrow Account as the Settlement Fund the sum of $2,600,000 for distribution of refunds
of franchise fees to gas and electric customers; and
Whereas in order to fund the Settlement Fund the City will issue a judgment bond;
and
Whereas, in the event that there are funds remaining in the Settlement Fund after
all distributions and all other costs required to be paid out of the Settlement Fund and
such funds are ordered returned to the City by the Court, the City Council desires to state
its intent with respect to such funds.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
DUBUQUE, IOWA:
Section 1. The City Council hereby declares that in the event there are funds
remaining in the Settlement Fund after all distributions and all other costs required to be
paid out of the Settlement Fund and such funds are ordered returned to the City by the
Court, the City Council will use all such funds to reduce the principal of the judgment bond
issued to fund the Settlement Fund.
Passed, approved and adopted this 21st day o December, 2015.
Roy D.
Attest:
Kevin(S. Firnstah , ditytlerk
aG
Mayor
F:\USERS\tsteckle\Lindahl\Zaber, J. Thomas vs. City\Resolution_ZaberUnclaimedFunds-PaymtOfJudgmentBond_121515.docx