09-323Council File # /�� j�.�
GreenSheet# 3�68761
RESOLUTION
CITY,
Presented by
PAUL, MlNNESOTA
C�]
1 WHEREAS, Saint Paul City Charter § 5.02 permits the City, upon recommendation of the
2 City Attorney and in the case of special or unusuai circumstances, to appoint outside counsel to
3 represent the City; and
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5 WHEREAS, the City wishes to pursue an action for damages for violations of tax
6 remittance law against Hoteis.com; Hofinrire.com; Cheap Tickets, Inc.; Expedia, inc.; Orbitz, LLC;
7 Priceline.com, 1nc,; Travelocity.com, Inc.; and/or other onfine companies for the sale, lease and
8 or rentaf of hotel/motel lodging facilities within the City; and
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WHEREAS, because of the special and unusual conditions regarding the immediate need
for specialized skills to pursue these actions by the City Attorney, the City Attorney recommends
the appointment of outside counsel for this matter and
WHEREAS, the City Attorney has reviewed the proposed litigation with Lockridge Grindal
Nauen P.L.L.P., as well as their ability to pursue the fitigation on a contingency fee basis without
requiring the City to pay attorneys fees or costs up front, now, therefore, be it
RESOLVED, that the City Attorney is hereby authorized to retain Lockridge Grindal Nauen
19 P.L.L.P. on a contingency fee basis to represent the City in legal acfions against Hotels.com;
20 Hotwire.com; Cheap Tickets, lnc.; Expedia, Inc.; Orbitz, LLC; Priceline.com, fnc.;
21 Travelocity.com, Inc.; andlor other online companies for violations of tax remittance laws, with
22 attorneys' fees and costs to be paid on a confingent basis.
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Yeas Nays Absent
Bosvom ,�
Carter f
Hazris i/
Helgen ,/
Lautry ✓
Stark ,i
Thune ✓
7 d
Requeste b Depar ent of. ��
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Approved by the Office of Financial Services
By:
Approved by City Attomey
By:
Adopted by Council: Date ��jJ�� �� j�/��� Approved by Mayor for Submission to Council
Adoption Certified by Cou eil Secretary gy;
BY ! J /!l/l '
Approved by May : Date 3����t'
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� Green Sheet Green Sheet Green Sheet Green Sheet Green Sheet Green Sheet
I DepartmeM/OfficelCouncil: Dste initiated:
i CA _CityAttomey I 1g_MAR-09 i Green Sheet NO: 3068761
; Conqct Person 8 Phone: � i
Portia Hampton-Flowflrs � �
'� 2665774 i �
, Assign �
f Must Be on Council L�qenda by (Date): � Number �
25-MAR-09 � For �
Routing
�DoaType_RESOLUTION i Ordet
I
i EAocument Required: N
i Document CoMact: I
I CoMactPhone: I
Totai # of Signature Pages _(Clip AI� Locations for Signature)
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Approval of outside counseL to represent the City against Hote(s.com; Hotwire.cAm; Cheap Tickets, Inc.; Ezpedia, Inc.; Orbitz, LLC;
Pricaline.com, Inc.; Travelociry.com, Inc.; and/or other online companies
Recommendations: Apprrne (A) or Reject (R):
Planning Commission
Cl8 Committee
Civil Service Commission
Persanal Service Contrects Must Answer the Following Questions:
1. Has this persoMfirm ever worked under a contrect for this tlepartment�
Yes No
2. Has this person/firm ever been a city employee?
Yes No
3. Does this persoNfirtn possess a skiA not normally possessed by any
current city empbyee?
Yes No
Explain alI yes answers on separate sheet and attach to green sheet.
initiating Problem, Issues, Opportunity (VYho, What, When, Where, Why);
Hotels.com; Hotwire.com; Cheap Tickets, Inc.; Expedia, Inc.; Orbitz, LLC; Priceline.com, Inc.; Travelocity.com, Inc.; andlor other
online companies have sold hotel rooms to the public witliln the Ciry of St. Paul but have failed to pay [axes due and owing to the City
of St. Paul for those iransactions. The City Attomey recommends outside counsel because the Office of the City Attorney does not
have the requisite expertise in tas remittance law. Lockridge Grindal Nauen P.L.L.P. is a recognized expert in tuc remittance law.
Advantages If Approved:
The City can pursue collection of unpaid taxes from these online companies without tl�e up-front costs af attorney s fees.
Disadvarrtages lf Approved:
None.
Disativantages If Not Approved:
The City will not be able to collect the unpaid taxes from these online companies.
iotal Amount of
TransaGtian:
Funding Source:
Financial Information:
(Explai�)
CosURevenue Budgeted:
Activity Number: GL00109073
March '18, 2009 '1:30 PM Page 1