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Home My WebLink About10-City Manager nfll,,",,,,, CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL A.ccrlQf}li, " Date: 10/31/08 Subject: Resolution of the Mayor and Common Council of the City of San Bernardino authorizing a Tolling Agreement between the City of San Bernardino and the County of San Bernardino concerning property tax administration fees, and rescinding Resolution 2008-396. From: Lori Sassoon, Assistant City Manager Dept: City Manager's Office Council Meeting Date: 11/17/08 Synopsis of Previous Council Action: 10/20/2008 The Mayor and Common Council approved Resolution 2008-396 authorizing a Tolling Agreement with the County of San Bernardino concerning property tax administration fees. Recommended motion: Adopt resolution. ~ Signature Contact person: Catherine Pritchett, Management Analyst I Phone: 384-5122 Supporting data attached: Staff Report, Resolution, Agreement Ward: All FUNDING REQUIREMENTS: Amount: None Source: Finance: Council Notes: A!Zo ZOo '2> 4 ~02...3 Agenda ;#'10 1l-11~oB STAFF REPORT Subiect: Resolution of the Mayor and Common Council of the City of San Bernardino authorizing a Tolling Agreement between the City of San Bernardino and the County of San Bernardino concerning property tax administration fees, rescinding Resolution 2008-396. Back!!round: In Los Angeles County, a group of 43 cities have filed suit against the County of Los Angeles challenging the amounts of Property Tax Administration Fees (PTAF) currently charged to cities and seeking a refund of the difference between the fees that should have been paid and the fees that were actually paid. It is likely that this lawsuit will result in a court order mandating the correct formula for determining these fees on a go-forward basis. Many cities in the County of San Bernardino are seeking the same relief. In anticipation, the County Board of Supervisors approved a comprehensive Tolling Agreement stopping the application statute of limitations that a City has to file a claim against the County challenging the amounts of PT AF currently charged. This agreement was offered to each of the cities in the County of San Bernardino. The County is expecting a majority of its 24 cities to enter in this Agreement, and has received executed contracts from the Cities of Rancho Cucamonga, Adelanto, Fontana and Yucaipa. On October 20, 2008, the Mayor and Common Council adopted a Tolling Agreement with the County. The agreement presented to the Council was a modified version of the agreement that was provided by the County of San Bernardino. Because the agreement varied from the Board approved template, the County will not execute it. StatY recommends that the prior action be rescinded, and that the City Manager be authorized to execute an Agreement that is acceptable to the County. Attached is the County approved Tolling Agreement. Financial ImJlact: None by this action. Recommendation: Adopt Resolution. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 (C(Q)[PY RESOLUTION NO. RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO AUTHORIZING A TOLLING AGREEMENT BETWEEN THE CITY OF SAN BERNARDINO AND THE COUNTY OF SAN BERNARDINO CONCERNING PROPERTY TAX ADMINISTRATION FEES, AND RESCINDING RESOLUTION 2008-396. BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS: SECTION 1. The City Manager of the City of San Bernardino is hereby authorized and directed to execute on behalf of said City, a Tolling Agreement between the County of San Bernardino and the City of San Bernardino concerning Property Tax Administration fees, which is attached hereto, marked Exhibit "A", and incorporated herein by reference as fully as though set forth at length. SECTION 2. Resolution 2008-396 is hereby rescinded. SECTION 3. The authorization to execute the above-referenced Tolling Agreement is rescinded if the parties to the agreement fail to execute it within ninety (90) days of the passage of this resolution. III III III III III III III III III 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO AUTHORIZING A TOLLING AGREEMENT BETWEEN THE CITY OF SAN BERNARDINO AND THE COUNTY OF SAN BERNARDINO CONCERNING PROPERTY TAX ADMINISTRATION FEES, AND RESCINDING RESOLUTION 2008-396. .. I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor and Common Council of the City of San Bernardino at a meeting thereof, held on the __ day of , 2008, by the following vote, to wit: Council Members: AYES NAYS ABSTAIN ABSENT ESTRADA BAXTER BRINKER DERRY KELLEY JOHNSON MCCAMMACK City Clerk The foregoing resolution is hereby approved this day of 2008. Patrick J. Morris, Mayor City of San Bernardino Approved as to form: JAMES F. PENMAN, City Attorney Br ]- f~ THIS CONTRACT is entered into in the State of California by and between the County of San Bernardino, hereinafter called the County, and Name City of San Bernardino hereinafter called City Address 300 N 0 Street San Bernardino, CA Telephone (909) 384 - 5122 County of San Bernardino FAS STANDARD CONTRACT FOR COUNTY USE ONLY ,.., New Vendor Code Oept. Contract Number ~ Change SC A ~ Cancel County Department Oapt. Orgn. Contractor's license No. County Department Contract Representative Telephone Total Contract Amount ( ) - $0 n Contract Type ,.., n Revenue Encumbered n' Unenoumbered other: If not encumbered or reve"nue contract type, provide reason: Commodity Code Contract Start Date Contract End Date Original Amount Amendment Amount $ $ Fund Oept. Organization Appr. ObjlRev Source GRC/PROJIJOB No Amount , $ Fund Oept. Organization Appr. Obj/Rev Source GRC/PROJ/JOB No. Amount . , $ Fund Oept. Organization Appr. Obj/Rev Source GRC/PROJIJOB No. Amount . , $ Project Name Estimated Payment Total by Fiscal Year Tolling Agreement FY Amount 110 FY Amount 110 - - - - Federal 10 No. or Social Security No. IT IS HEREBY AGREED AS FOLLOWS: (Use space below and additional bond sheets. Set forth service to be rendered, amount to be paid, manner of payment, time for petformance or completion, determination of satisfactory performance and cause for termination, other terms and conditions, and attach plans, specifications, and addenda, if any.) TOLLING AGREEMENT This Tolling Agreement is entered into by and between the County and the City with respect to the following facts: 1. A dispute has arisen between the City and the County regarding the amount of property tax administration fees charged by the County and its County AssessorlTax Collector to cities, beginning in fiscal year 2006/2007 and continuing through fiscal year 2007/2008, pursuant to Revenue and Taxation Code sections 95.3 and 97, in light of the provisions of Revenue and Taxation Code sections 97.68 and 97.70 (the "Administrative Fees Page 1 of 3 Dispute"). The City contends that the County has charged more for property tax administration fees than its statutory mandate allows, whereas the County contends that it has charged property tax administration fees within the statutory authority. 2. That same Administrative Fees Dispute has arisen between the County and many other cities located within the County, and has also arisen between other California counties and many cities within those counties' territory. 3. Conflicting legal opinions as to the Administrative Fees Dispute have been rendered by various state and local agencies and their counsel. 4. Many California cities have filed claims against counties seeking reimbursement for alleged overcharges of property tax administration fees, and litigation between cities and counties over the Administrative Fees Dispute has been threatened and has been filed or is imminent in the County of Los Angeles and possibly other jurisdictions. 5. The City and the County wish to preserve their respective rights concerning the Administrative Fee Dispute but want to avoid duplicative and potentially wasteful litigation of an issue that will likely be resolved in other litigation. THEREFORE, the City and the County hereby agree as follows: 1. The statute of limitations or any other time within which the City may file a claim pursuant to the Tort Claims Act or any applicable claims statute or County ordinance, and the statute of limitations or other time within which the City may file litigation against the County challenging the County's calculation of the property tax administration fee for fiscal years 2006/2007 and later arising out of the Administrative Fees Dispute shall be, and hereby is, tolled and extended until the earlier of (a) three years from the date of this Tolling Agreement or (b) a final judgment or opinion by a California court of competent jurisdiction adjudicating the Administrative Fees dispute between the County of Los Angeles and any city therein, or between any other California county and cities. 2. Each party represents and warrants that the individuals executing this Tolling Agreement on each party's behalf possess full authority to execute this agreement and to settle and compromise all claims settled and compromised by this agreement. 3. This Tolling Agreement contains the entire agreement of the parties and supersedes any and all prior or contemporaneous understandings, negotiations, representations, promises and agreements, oral or written, by or between the parties with respect to the matters set forth in this Tolling Agreement. This Tolling Agreement shall not be amended, modified, or otherwise changed except by a writing duly signed by authorized representatives of each party. 4. In entering into this Tolling Agreement, each party has had the opportunity to consult with and rely upon the advice of the attorneys of its own choice. Each party represents and warrants that the terms of this Tolling Agreement have been completely read by and explained to Page 2 of 3 it by its attorneys, and that those terms are fully understood and voluntarily accepted by it. Accordingly, any rule of law, including but not limited to Section 1654 of the California Civil Code, or any other statutes, legal decisions, or common law principles of similar effect, which would require interpretation of ambiguities in this Tolling Agreement against the party that has drafted it are of no application and are expressly waived. 5. This Tolling Agreement shall be construed and interpreted in accordance with the laws of the State of California. 6. This Tolling Agreement shall become effective upon execution by all parties. This agreement may be executed in counterparts, each of which shall be deemed to be an original and all of which shall be deemed to constitute one and the same document. 7. Either party may terminate this Agreement by providing written notice to the other party at least ninety (90) days before the date of termination. The amount of time tolled prior to the date of termination pursuant to this Agreement shall not be affected by such termination. IN WITNESS WHEREOF, the parties have executed this Tolling Agreement on the dates set forth below. APPROVED AS TO FORM: ~ ?-I!~ (;It Attorney COUNTY OF SAN BERNARDINO ATTEST: City Clerk City of San Bernardino (Print or type name of corporation, compeny, contractor, etc.) ~ Paul Biane, Chairman, Board of Supervisors By ~ (Authorized signature - sign in blue ink) Dated: Name (Print or type neme of person signing contract) SIGNED AND CERTIFIED THAT A COPY OF THIS DOCUMENT HAS BEEN DELIVERED TO THE CHAIRMAN OF THE BOARD Dena M. Smith Clerk of the Board of Supervisors of the County of San Bernardino Title (Print or Type) Dated: Deputy Address: 300 N D Street San Bernardino, CA 92418 By Reviewed by Contract Compliance Presented to BOS for Signature Approved as to Legal Form ~ County Counsel ~ ~ Department Head te Date Date Page 3 of 3