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HomeMy WebLinkAbout01-051 CC ResolutionRESOLUTION NO. 01-51 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA APPROVING THAT CERTAIN AGREEMENT ENTITLED "VAIL RANCH ANNEXATION AGREEMENT NO. 2 (TAX REIMBURSEMENT) BETWEEN THE CITY OF TEMECULA AND THE COUNTY OF RIVERSIDE" THE CITY COUNCIL OF THE CITY OF TEMECULA HEREBY RESOLVES AS FOLLOWS: Section 1. declare that: The City Council of the City of Temecula does hereby find, determine and The Local Agency Formation Commission (LAFCO) adopted its Resolution No. 35-00 on November 16, 2000, approving the proposed reorganization designed as LAFCO No. 2000-10-1 which included annexation to the City of Temecula of the area generally known as Vail Ranch. The City of Temecula, as the designated conducting authority, adopted its Resolution No. 2001-17 on February 13, 2001 ordering the annexation. The Annexation will be effective on July 1, 2001. The State of California requires completed annexation maps, legal descriptions of property and other documents to be filed with the State by December 1 in order to transfer property tax, sales tax and other tax revenues between governmental agencies as a result of annexations for the fiscal year beginning the following July 1. Since LAFCO approved the Annexation in November 2000, the transfer of property tax, sales tax and other tax revenue between the County and the City for the Vail Ranch Annexation Area will occur after the July 1, 2001 effective date of the Annexation. Accordingly, the County has agreed to reimburse the City for tax revenues generated within the Annexation Area which the County receives after the Annexation Date but which would have been allocated to the City had the Annexation been approved at a date which would enable the City to meet the December 1, 2000 deadline established by the State for filing completed annexation documents. The Agreement approved by this Resolution furthers the public health, safety and general welfare of the residents of Riverside County and the City of Temecula. Section 2. The City Council of the City of Temecula hereby approves that certain agreement entitled "Vail Ranch Annexation Agreement No. 2 (Tax Reimbursement) Between the City of Temecula and the County of Riverside" and authorizes the Mayor to execute the Agreement on behalf of the City in substantially the form attached hereto as Exhibit A. Section 3. Council. The City Clerk shall certify to the adoption of this Resolution by the City R:/Resos2001/Reso 01-51 1 PASSED, APPROVED AND ADOPTED by the City Council of the City of Temecula this 12th day of June, 2001. [SEAL] Jeff Comerchero, Mayor STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE) ss CITY OF TEMECULA ) I, Susan Jones, CMC, City Clerk of the City of Temecula, California, do hereby certify that Resolution No. 01-51 was duly and regularly adopted by the City Council of the City of Temecula at a regular meeting thereof held on this 12th day of June, 2001, by the following vote: AYES: 4 NOES: 0 COUNCILMEMBERS: None ABSENT: I COUNClLMEMBERS: Pratt ABSTAIN: 0 COUNCILMEMBERS: None COUNCILMEMBERS: Comerchero, Naggar, Roberts, Stone Clerk R:/Resos2001/Reso 01-51 2 VAIL RANCH ANNEXATION AGREEMENT NO. 2 (TAX REIMBURSEMENT) BETWEEN THE CITY OF TEMECULA AND THE COUNTY OF RIVERSIDE THIS ANNEXATION AGREEMENT NO. 2 is dated as of June 19, 2001 by and between the City of Temecula, a municipal corporation ("City") and the County of Riverside. In consideration of the mutual covenants and conditions set forth herein, the parties agree as follows: 1. Recitals. This Agreement is made with respect to the following facts and purposes, which each party hereto acknowledges as true and correct: a. The Local Agency Formation Commission of the County of Riverside ("LAFCo") adopted its Resolution No. 35-00 on November 16, 2000, making determinations and approving the proposed reorganization designated as LAFCO No. 2000-10-1, including concurrent annexations to the City of Temecula and the Temecula Community Services District and concurrent detachments from the Riverside County Waste Resources Management District, County Service Area 143 and County Service Areas 152 of territory generally known as the Vail Ranch Specific Plan Area and more specifically described in Exhibit A attached to LAFCO Resolution No. 35-00. b. The City Council of the City of Temecula, as the designated conducting authority, adopted its Resolution No. 2001-17 on February 13, 2001 ordering the reorganization of the Vail Ranch Specific Plan Area, LAFCO No. 2000-10-1 to the City of Temecula and the Temecula Community Services Area and the detachment of those areas from the Riverside County Waste Resources Management District, County Service Area 143, and County Service Area 152 ("Annexation"). c. The Vail Ranch Specific Plan Area to be annexed to the City of Temecula and the Temecula Community Services District is described and depicted on Exhibit A, "Annexation Area." Each of these exhibits is attached hereto and incorporated herein by this reference as though set forth in full. d. As part of the heating process for the LAFCo approval of the reorganization, the County objected to the reorganization as originally proposed because of the financial impacts of the original proposal on certain County obligations within the Commercial Areas. The County has been engaged in a significant effort to preserve the historical buildings on portions of the Commercial Areas and assist in the development of the commercial properties surrounding the historical buildings as a means of funding the preservation efforts. While supportive of the County's efforts, the City was concerned that a modification of the boundaries of the proposed area to be annexed to the City would impair its ability to provide an appropriate level of municipal services to the area. The proceedings before LAFCo were delayed for several months in order to enable the City and the County to develop some creative solutions to their respective concerns. City and the County have negotiated the terms of this Agreement in an effort to accormnodate 644528.4 May 30, 2001 the needs of the County to reduce these impacts and the need of the City to obtain sufficient revenue from the annexation area to provide appropriate municipal services to the area. This Agreement sets forth the agreement of the City and County with respect to these issues. e. The delay in the LAFCo proceedings in order to resolve the important issues concerning the Annexation prevented the City from filing the necessary documents with the State Board of Equalization and the County Auditor-Controller in order to transfer certain tax revenues from the County to the City upon the effective date of the Annexation. Accordingly, the City and County have agreed to allow the County to continue to collect these taxes from the Annexation Area and to transfer the tax monies to the City until such time as the State Board of Equalization and the County Auditor can make the appropriate transfers from the County to the City. f. This Agreement benefits both the City and the County and furthers the public health, safety and general welfare of the City, the County and the persons served by each govemmental entity. 2. Tax Revenue Reimbursements from Annexation Area. a. The County currently receives from properties and transactions within the Annexation Area certain tax and state revenues based on the city or unincorporated county area in which certain events occur. These revenues include the following ("Tax Revenues"): Ninety two thousand two hundred eighty one dollars ($92,281.00) which amount represents, which amount represents the City's share, pursuant to the Master Property Tax Agreement between the County and the City, of the ad valorem property tax revenue from all parcels within the Annexation Area pursuant to Division 1 of the Revenue and Taxation Code. (2) One percent (1%) of the sales and use taxes collected by retail businesses within the Annexation Area on taxable retail sales pursuant to The Bradley-Burns Uniform Local Sales Tax Law (Part 1.5 of Division 2 of the Revenue and Taxation Code) (Section 7200 et. seq.); (3) The City's Share of funds allocated from the Highway Users Tax Account ("gas tax") pursuant to Chapter 3 of Division 3 of the Streets and Highways Code (Section 2100 et. seq.); (4) The City's Share of the Motor Vehicle License Fee pursuant to Chapter 5 of Part 5 of Division 2 of the Revenue and Taxation Code (Section 11000 et. seq.); 644528.4 May 30, 2001 (5) Motor Vehicle Licensing Fees In-Lieu Tax; (6) The City's share of the Documentary Transfer Tax pursuant to Part 6.7 of Division 2 of the Revenue and Taxation Code (Section 1901 et. seq.); (7) Vehicle Code fines; (8) Riverside County Measure "A" funds; (9) The City's share of funds allocated from the Supplemental Law Enforcement Services Fund (the "COPS" fund) pursuant to Chapter 6.7 of Division 3 of Title 3 of the Government Code (Section 30061 et. seq.); (10) Califomia Law Enforcement Equipment Program funds ("CLEEP") (11) ERAF Relief under AB 1326; (12) The City's Share of Booking Fees Reimbursements made pursuant to Section 29550.4 of the Government Code; (13) Off-Highway Licensing Fees; (14) The City's Share of funds allocated from the Traffic Congestion Relief Fund pursuant to Section 2182 of the Streets and Highways Code; (15) The City's Share of funds allocated from the Transportation Investment Fund pursuant to Section 2182 of the Streets and Highways Code; and (16) One hundred seventy five thousand dollars ($175,000.00) which amount represents development impact fees collected by the County from development within the Vail Ranch for park and recreation purposes. b. The City, County and LAFCo are cooperating in the preparation and filing of the necessary documents to transfer the appropriate property tax revenue payments, sales tax revenue, and the other Tax Revenues from the County to the City. Such transfers will not become effective until some time after the effective date of the Annexation. c. Until such time as the transfer of a tax applicable to the Annexation Area from the County to the City is complete, County agrees to pay to the City the Tax Revenues collected from the Annexation Area had the appropriate documents for payment of the taxes to the City been completed prior 644528.4 May 30, 2001 to the effective date of the Annexation. The Tax Revenues shall be paid on a quarterly basis. No later than January 31, April 30, July 30 and October 31 County shall pay to the City the Tax Revenues received by the County during the prior calendar quarter. Along with such payment, County shall provide City with documentation of the tax revenue received for each applicable tax. 5. Indemnification a. County agrees to defend, indemnify, protect and hold harmless the City, its officers, officials, employees and volunteers from and against any and all claims, demands, losses, defense costs or expenses, or liability of any kind or nature which the City, its officers, agents and employees may sustain or incur or which may be imposed upon them for injury to or death of persons, or damage to property arising out of the County's negligent or wrongful acts or omissions in performing or failing to perform under the terms of this Agreement, excepting only liability arising out of the negligence of the City. b. City agrees to defend, indemnify, protect and hold harmless the County, its officers, officials, employees and volunteers from and against any and all claims, demands, losses, defense costs or expenses, or liability of any kind or nature which the County, its officers, agents and employees may sustain or incur or which may be imposed upon them for injury to or death of persons, or damage to property arising out of the City's negligent or wrongful acts or omissions in performing or failing to perform under the terms of this Agreement, or which may arise from the ownership of the Property, excepting only liability arising out of the negligence of the County. 6. Defaults and Remedies a. Subject to the extensions of time set approved in writing by a party, failure or delay by either party to perform any term or provision of this Agreement constitutes a default under this Agreement. A party claiming a default (claimant) shall give written notice of default to the other party, specifying the default complained of. h. The claimant shall not institute proceedings against the other party nor be entitled to damages if the other party within fourteen (14) days from receipt of such notice immediately, with due diligence, commences to cure, correct or remedy such failure or delay and shall complete such cure, correction or remedy within thirty (30) days from the date of receipt of such notice. Such cure, correction and remedy shall include payment of any costs, expenses (including attorney fees) or damages incurred by the non-defaulting party resulting from the default or during the period of default. c. Except as otherwise expressly stated in this Agreement, the rights and remedies of the parties are cumulative, and the exercise by either party of one or more of such rights or remedies shall not preclude the exercise by it, at 644528.4 May 30, 2001 the same or different times, of any other rights or remedies for the same default or any other default by the other party. d. Any failures or delays by either party in asserting any of its rights and remedies as to any default shall not operate as a waiver of any default or of any such rights or remedies, or deprive either such party of its right to institute and maintain any actions or proceedings which it may deem necessary to protect, assert or enforce any such rights or remedies. e. If a default is not fully cured by the defaulting party as provided in this Paragraph, the defaulting party shall be liable to the other party for any damages caused by such default, and the nondefaulting party may thereafter (but not before) commence an action for damages against the defaulting party with respect to such default. f. If a default under this Agreement is not fully cured by the defaulting party as provided in this Paragraph, the nondefaulting party at its option may thereafter (but not before) commence an action for specific performance of terms of this Agreement. g. In the event litigation is filed by one party against the other to enforce its rights under this Agreement, the prevailing party, as determined by the Court's judgment, shall be entitled to reasonable attorney fees and litigation expenses incurred in the action. 7. Force Majeure. Except as otherwise expressly provided in this Agreement, if the performance of any act required by this Agreement to be performed by either City or County is prevented or delayed by reason of any act of God, strike, lockout, labor trouble, inability to secure materials, restrictive governmental laws or regulations, or any other cause (except financial inability) not the fault of the party required to perform the act, the time for performance of the act will be extended for a period equivalent to the period of delay and performance of the act during the period of delay will be excused. However, nothing contained in this Section shall excuse the prompt payment by a party as required by this Agreement or the performance of any act rendered difficult or impossible solely because of the financial condition of the party required to perform the act. 8. Notices to Parties Written notices, demands and communications among the City and County, shall be sufficiently given by either by (i) personal service, (ii) delivery by a reputable document delivery service, such as but not limited to, Federal Express, that provides a receipt showing date and time of delivery, or (iii) mailing in the United States Mail, certified mail, postage prepaid, return receipt requested, addressed to the address of the party as set forth below or at any other address as that party may later designate by Notice: 644528.4 May 30, 200l City: City of Temecula 43200 Business Park Drive Post Office Box 9033 Temecula, California 92589-9033 Attention: Genie Roberts, Director of Finance County County Executive Officer County of Riverside 4080 Lemon Street Riverside, Ca. 92501 9. Agreement Binding on Successors. This Agreement shall be binding on and shall inure to the benefit of the successors and lawful assigns of the parties hereto. 10. Assignment. Neither Party shall assign or transfer this Agreement or any portion thereof without the prior written consent of the other party, which consent shall not be unreasonably withheld; provided however that either party may assign this Agreement to a related public entity without the consent of the other. 11. Sole and Only Agreement. This Agreement constitutes the sole and only agreement between City and County respecting the matters contained herein, except that the parties acknowledge and agree the City of Temecula, the Temecula Community Services District and the County have entered into other agreements concerning the Annexation, which are designated "Vail Ranch Annexation Agreement No. 1 (Median/Parkway Maintenance Agreement) Between the City of Temecula and the County of Riverside," dated as of June 19, 2001, "Sales Tax Revenue Sharing Agreement Between the County of Riverside and the City of Temecula (First District)," dated as of June 19, 2001, and the Master Property Tax Agreement between the City and the County. Any agreements or representations, either oral or written, respecting the matters discussed in this Agreement not expressly set forth in this Agreement are null and void. 12. of this Agreement. Time of Essence. Time is expressly declared to be of the essence 13. Authority to Execute. Each party hereto expressly warrants and represents that he or she has the authority to execute this Agreement on behalf of his or her governmental entity and warrants and represents that he or she has the authority to bind his or her entity to the performance of its obligations hereunder. IIII IIII 644528.4 May 30, 2001 IN WITNESS WHEREOF this Agreement has been executed by the authorized representatives of the parties hereto. CITY OF TEMECULA Jeffrey Comerchero Mayor Attest: Susan Jones, CMC City Clerk Approved as to form: Peter M. Thorson City Attorney 644528.4 May 30, 2001 COUNTY OF RIVERSIDE By: James A. Venable Chairman of the Board of Supervisors Attest: Gerald A. Maloney Clerk of the Board of Supervisors By: Deputy Clerk of the Board of Supervisors Approved as to Form: William Katzenstein County Counsel By: Joe S. Rank Deputy County Counsel 644528.4 May 30, 2001 EXHIBIT A ANNEXATION AREA 644528.4 May 30, 2001