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