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<br />7A <br />Page 7 <br /> <br />. Expedia, Inc. <br />. Internet Publishing Corp. (d/b/a Lodging.com) <br />. Lowestfare.com <br />. Maupintour Holding LLC <br />. Orbitz, Inc. <br />. Orbitz, LLC <br />. Site59.com LLC <br />. Travelocity.com LP <br />. Travelweb, LLC <br />. Travelnow.com, Inc. <br /> <br />Los Angeles is being represented by Paul Kiesel of Kiesel, Boucher, & Larson LLP, of Beverly <br />Hills. A copy of the complaint is available at www.kbla.com/files/LA%20citv.odf. <br /> <br />A National Issue <br /> <br />Similar la\4ISuits have been filed by the cities of San Antonio, Texas; Chicago. III.; San Diego, <br />Calif.; Philadelphia, Pa.; Atlanta, Ga.; and others. In addition, a class action consumer fraud <br />lawsuit has been filed on behalf of travelers who have booked hotels with such companies (Bush <br />et al v Cheaptickets, Inc. et al). Sabrina S. Kim and Jeff S. Westerman of Milberg Weiss Bershad <br />and Schulman, LLP of Los Angeles are representing the plaintiffs. <br /> <br />The loss is substantial to cities which rely on TOT as a significant source of revenue. We <br />estimate that TOT losses to California cities are nearly $100 million and that past losses <br />statewide through FY 2006-07 exceed $500 million. <br /> <br />Legal Procedures <br /> <br />As mentioned previously, the attorneys for the city of Los Angeles are seeking class action status <br />on behalf of California cities. If the court denies class action status, individual cities will need to <br />decide whether to bring their own court action against these companies. <br /> <br />To do so, a city may first need to exhaust the administrative collection procedure contained in its <br />TOT ordinance. The attorneys for the city of Los Angeles have informed the League of California <br />Cities that if cities want to avoid falling within the four-year statute of limitations on unpaid TOT <br />(Le., the city may collect back taxes as far back as can be documented), cities will need to submit <br />demand letters to the companies within five days of the court's decision on class action status. <br /> <br />Paul Kiesel, the attorney for the city of Los Angeles, has drafted a sample demand letter that <br />cities may be interested in using. Kiesel is also available to discuss the particular legal issues <br />involved in the litigation. He may be reach at Kiesel@kbla.com. <br /> <br />The League is also monitoring this litigation, and will provide an update as additional information <br />is available. <br /> <br />Annual Conference Resolutions Introduction Deadline Approaching <br /> <br />The deadline to introduce a League of California Cities Annual Conference Resolution is quickly <br />drawing near. The deadline is Friday, July 6, at 5 p.m. for submittals by mail and Saturday, July 7 <br />at midnight for submittals by a-mail or fax. <br /> <br />Policy development is a key part of the League's legislative effectiveness and the League's <br />Annual Conference Resolutions process is one way that city officials can directly participate in the <br />development of League policy. Any elected or appointed city offICial, individual city, division, <br />department, policy committee, or the board of directors may submit a resolution for consideration <br />at the conference. <br /> <br />Resolutions submitted by the deadline will be distributed to cities in mid-to-late July and <br />considered at the Annual Conference. More information about the resolutions process, including <br />key deadlines and an explanation of the review process at the Annual Conference is available on <br />the League Web site at www.cacities.orQ/resolutions. <br /> <br />7 <br />