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HomeMy WebLinkAbout01-052 CC ResolutionRESOLUTION NO. 01-52 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA APPROVING THAT CERTAIN AGREEMENT ENTITLED "SALES TAX REVENUE SHARING AGREEMENT BETWEEN THE COUNTY OF RIVERSIDE AND THE CITY OF TEMECULA (FIRST DISTRICT)" 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. County objected to the reorganization as originally proposed because of the exclusion of the Red Hawk development from the proposed annexation, the inclusion of the commercial property adjacent to Red Hawk and potential impacts to the County's effort to preserve the historic Vail Ranch. City and County agreed to resolve these differences through negotiation for the benefit of all residents of the County and City and to allow City's annexation to proceed. City agreed to remove the disputed commercial areas from within the boundaries of the annexation and to, at some future time, provide Red Hawk residents an opportunity to consider annexing to the City. County agreed to provide financial assistance to City to ensure the appropriate level of municipal services to the residents of the annexation area, The voters of California on November 3, 1998, approved Proposition No. 11 which amended Article XIII, Section 29, of the California Constitution to allow cities and counties to enter into agreements to share sales and use tax revenues with the approval by the legislative bodies of both parties by a two-thirds vote. The State Legislature amended Government Code Section 55700 et seq. to provide the option for approval of sales tax revenue sharing agreements. R:/Resos2001/Resos 01-52 I One or more retailers will be established on the Site, as defined in the Agreement, within the unincorporated County area, and consumers residing in the City will be pumhasing tangible personal property from such retailers to the extent that equity requires the revenues of the County to be distributed in a fair and just manner as set forth in the Agreement approved by both the and the County. 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. This Agreement has been approved by a two-thirds vote of the City Council of the City of Temecula. Section 2. The City Council of the City of Temecula hereby approves that certain agreement entitled "Sales Tax Revenue Sharing Agreement Between the County of Riverside and the City of Temecula (First District)" and authorizes and directs 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 PASSED, APPROVED AND ADOPTED by the City Council of the City of Temecula this 12th day of June, 2001. [SEAL] Jeff Comerchero, Mayor R:/Resos2001/Resos 01-52 2 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. 01-52 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 COUNCILMEMBERS: Comerchero, Naggar, Roberts, Stone NOES: 0 COUNCILMEMBERS: None ABSENT: 1 COUNClLMEMBERS: Pratt ABSTAIN: 0 COUNCILMEMBERS: None R:/Resos2001/Resos 01-52 3 ~¥-09-01 ~ED 04:10 P~ EXEOI /E OF'?'IU~ raz mu, uuu ~u ~u~ r. u~ SALES '[AX REVENUE SHARING AGREEMENT BETWEEN '[HE COUNTY OF RIVERSIDE AND '[HE CI'[Y OF '[EMECULA (FIRST DIS'I'RICT) THIS AGREEMENT is entered into as of this day of ,2001, by and between the County of Riverside (hereafter the "County") and the City of Temecula (hereafter the "City"), hereafter collectively referred to as the "Parties." WHEREAS, the Local Agency Formation Commission (LAFCO), adopted it's Resolution No. 35-00 on November 16, 2000, approving the proposed reorganization designated as LAFCO No. 2000-10-1 which included annexation to the City of Temecula of the area generally known as Vail Ranch; and WHEREAS, the City of Temecula, as the designated conducting authority, adopted it's Resolution No. 2001-17 on February 13, 2001, ordering the annexation; and WHEREAS, County objected to the reorganization as originally proposed because of the exclusion of the Red Hawk development from the proposed annexation, the inclusion of commercial areas adjacent to Red Hawk and potential impacts to the Count, s effort to preserve the historic Vail Ranch; and WHEREAS, City and County agreed to resolve these differences through negotiation for the benefit of all residents of the County and to allow City's annexation to proceed; and WHEREAS, City agreed to remove the disputed commercial areas from within the boundaries of the annexation and to, at some future time, provide Red Hawk residents an opportunity to consider annexing to City; and WHEREAS, County agreed to provide financial assistance to City to ensure the appropriate level of municipal services to the residents of the annexation area; and WHEREAS, the voters of Califomia on November 3, 1998, approved Proposition No. 11 which amended Article XIII, Section 29, of the California Constitution to allow cities and counties to enter into agreements to share sales and use tax revenues with the approval by the legislative bodies of both padies by a two-thirds vote; end Draft: May 31, 2001 -1- ~Y-09-O'i ~ED 04:]0 711 EXEO6V~ WHEREAS, the State Legislature amended Governmental Code Section 55700 etseq., to provide the option for approval of sales tax revenue sharing agreements; and WHEREAS, the Agreement furthe rs the public health, safety and general welfare of the residents of Riverside County. NOW, 'THEREFORE, BE IT RESOLVED, in consideration of the promises and mutual covenants and conditions contained herein, the Padies hereto do hereby agree as follows: Section 1. DEFINITIONS. Unless the context otherwise requires, the terms defined in this Section shall, for all purposes of this Agreement, h'ave the meanings herein specified, Aqreement "Agreement" means this Sales Tax Revenue Sharing Agreement. Fiscal Year "Fiscal Year" is defined as July 1 through June 30. Net Sales Tax "Net Sales Tax" is defined as the amount of gross sales tax disbursed to the County imposed and received by the County under authority granted to the County pursuant to Section 7201 of the Revenue and Taxation Code of the State of California, less any amounts which must be disbursed to any other public entity, including but not limited to the State Board of .Equalization. Site "Site" shall mean that certain real property located in the County of Riverside, State of California, more particularly described in Exhibit "A" and depicted in Exhibit "B". Historic Site 'H~stor c Site" shall mean that certain real property located in State of California County, County of R~vers'de more particularly described in Exhibit C and depicted in Exhibit D. Sales and Uses Taxes Draft: May 31, 2001 -2- "Sales and Use Taxes" means the one percent (1%) sales tax currently imposed and received by the County under authority granted to the County pursuant to Section 7201 of the Revenue and Taxation Code of the State of California. Section 2. PAYMENTS TO THE CITY. "(A) From Jul 1, 2001, County shall pay City an amount equal to fifty percent (50%) of the Net Sates Tax revenue that the County receives from taxable sales occurring on the Site. Such payments shall continue until such time as the County's share of the Net Sales Tax revenue it retains from the Site pursuant to this Agreement equals one million nine hundred thousand dollars ($1,900,000.00) or such other amount as is necessary to fulfill County's obligation under the Development Agreement between the County and the owner of the Site. In the event the County's obligation under the De~,elopment Agreement exceeds $1.9 million, County shall notify City of the amount of its obligation as soon as practicable following the date of this Agreement and upon such notice the amount of the obligation shall be used in place of the $1.9 million figure." "(B) Within twelve (12) months from the date the County's obligation to developer under the Development Agreement for the site is fulfilled, City shall use its best efforts to take such action as are required by law to apply for the annexation of the Redhawk Area, as described in Exhibit E, to the City of Temecula and to set an election date for the residents of the Redhawk Area to vote on the City's special park tax and rates and charges imposed by the Temecula Community Services District for funding certain municipal services." "(C) If the Redhawk Area is annexed to the City, the City shall retain one hundred percent (100%) of the sales and use tax revenues generated on the Site pursuant to Section 7201 of the Revenue and Taxation Code. If the Redhawk Area is not annexed to the City, the County shall retain one hundred percent of the sales and use tax revenues generated on the Site pursuant to Section 7201 of the Revenue and Taxation Code." Section 3, INTENTIONALLY DELETED Section 4. TAX SHARING FROM THE HISTORIC SITE. County shall retain one hundred percent (100%) of the Net Sales Tax revenue that the County receives from taxable sales occurring on the Historic Site. Upon annexation of the Historic Site, City shall pay to County, one hundred 100% of the Net Sales Tax revenue that the City receives from taxable sales occurring on the Historic Site. Section 5. TIME OF PAYMENT. Payments required hereunder by either City or County shall be paid within thirty (30) days of receipt of Applicable Sales and Use Taxes from the State Board of Equalization. Section 6. STATEMENT OF ACCOUNT. The County shall provide the City with a Draft: May 31, 2001 -3- H~Y-09-01 WED 04:11PH EXE~VE OFF]OE ~RZ NU, UUU uu~ llUU r, uo Statement o! Account upon request of City staff. The Statement of Account shall include, but not be limited to, the following: sales tax rave nue collected by the County to date for the Fiscal Year, sales tax revenue collected by the County during the preceding Fiscal 'Year, sales tax revenue disbursed to the City during the preceding Fiscal Year, and the total of all sales tax revenues disbursed to the City from the date of execution of this Agreement, If annexation of the Historic Site should occur, City shall provide th~ same Information to County with respect to the Historic Site upon request of County staff. Section ?. ASSIGNMENT. Neither this Agreement nor any clause or provision contained herein may be assigned, transferred or released without the express written consent of the Parties hereto. Section 8. NOlrlFICA'flON. All notices, statements, demands, requests, consents, approvals, authorizations, offers, agreements, appointments or designations hereunder by either Party to the other shall be in writing and shall be sufficiently given and served upon the other Party, if sent by United States registered mail, return receipt requested, postage prepaid and addressed as follows: County: County Executive Officer County of Riverside 4080 Lemon Street Riverside, CA 92501 City: City Manager City of Temecula 43200 Business Park Drive Temecula, CA 92589 With a copy to: Executive Director County of Riverside Economic Development Agency 3525 Fourteenth Street Riverside, CA 92501-3813 Section 9. A~UUTHORITY 'fO EXECUTE. The person or persons executing this Agreement on the behalf of the City warrants and represents that they have the authority to execute this Agreement on behalf of the City. Draft: May 31, 2001 -4- HaY-09-O1 WED 04:11PH E×EOi~VE OFFICE FAX ND, BUS S~llUb r. UO Section 10. CHANGES OR MODIF CAT.IONS. No part of this Agreement may be modified, altered, amended, waived, or changed without the express written consent of both of the Parties, Section 11. TERMINA'[ION. Countyor City mayterminate this Agreement if the other party commits any material breach of this Agreement and has not cured, or where such cure cannot be completed within thirty (30) days, commenced efforts to cure such breach within thirty (30) days of the date of receipt of written demand to cure. Section 12. ATTORNEY. FEES. If any action is brought to enforce the provisions of this Agreement, the prevailing party shall be entitled to an award of reasonable attorney fees, costs, and necessary disbursements, Se ction 13. ~WAIVER_. Any waiver by the County of any breach of any one or more of the terms of this Agreement shall not be construed to be a waiver of any subsequent or other term thereof, Failure on the part of the County to require exact, full, and complete compliance with any terms of this Agreement shall not be construed as in any manner changing the terms of this Agreement, or stopping the County from enforcement hereof. Section 14. SEVERABILITY. If any provision of this Agreement is held by a court of competent jurisdiction to be invalid, void, or unenforceable, the remaining provisions shall nevertheless continue in full force without being impaired or invalidated in any way. Section 15. GOVERNING LAW. This Agreement will be governed by and construed in accordance with the laws of the State of California, Section 16. _NO'I'ICES OF '1' ERMINA'I'ION.. Notice of termination bythe Countyto the City shall be deemed delivered if sent by certified mail, return receipt requested, to the individual representing the City at the address set forth in Section 9 hereof. Notice by the City to the County shall be deemed delivered if sent by certified mail, return receipt requested, to the individual representing the County at the address set forth in Section 9 hereof. Section 17. ~. Draft: May 31, 2001 -5- HMY-09-O1 WED 04:11 PM EXEO OFFIOE NO, 9U8 81jjllUb r, ul 17,1 The City agrees to and shatl defend, indemnity and hold the County iree and harmless from all claims, actions, damages, liabilities of whatsoever kind, nature or sort, arising from any and all actual or alleged claims, demands, causes of action, liability, loss, damage, and/or injury to persons or propertY which the County may suffer a~ a result of any negligent ecl or omission of the City, its elected officials, officers, employees, and agents relating to or in any way connected with the accomplishment of work or performance of services pursuant to thio Agreement, regardless of the existence or degree of fault or negligence on the part of the County or any elected official, officer, employee, or agent of the County, other than the sole active negligence of the County, its elected officials, officers, employees, or agents, This indemnification includes, without limitation, the payment of all judgments, awards, attorneys' fees, and related costs or expenses, and the reimbursement of the County, its elected officials, officers, employees, and agents for all legal expenses and costs incurred by each of them. The City's obligation to indemnify shall survive the expiration or termination of this Agreement, and shall not be restricted to insurance proceeds, if any, received by the City, its officers, employees, agents, contractors, or subcontractors. 17.2 The County agrees to and shall defend, indemnify, and hold free and harmless the City free and harmless from all claims, actions, damages, liabilities of whatsoever kind, nature or sort, arising from any and all actual or alleged claims, demands, causes of action, liability, loss, damage, and/or injury to persons or property which the City may suffer as a result of any negligent act or omission of the County, its elected officials, officers, employees, and agents relating to or in any way connected with the accomplishment of work or performance of services pursuant to this Agreement, regardless of the existence or degree of fault or negligence on the part of the City or any elected official, officer, employee, or agent of the City, other than the sole active negligence of the City, its elected officials, officers, employees, or agents. This indemnification includes, without limitation, the payment of all judgments, awards, attorneys' fees, and related costs or expenses, and the Draft: May 31, 2001 -6- ~¥-09-01 WED 04:11 PM EXEO~iiVE OFFICE FAX NO, 909 ~ili1]ub r. ua reimbursement of the City, its elected officials, officers, employees, and agents for all legal expenses and costs incurred by each of them. The County's obligation to indemnify shall survive the expiration or termination of this Agreement, and shall r~.ot.~b_e..r_estr]~ted t,!nsurance proceeds, if any, ;;ceiv;d"l~Y the County,-it-s--~offi~-~rs,'-er~PI°yees' agents, contractors, or subcontractors. Section 18. INDEPENDENT CAPACITY. The City, its officers, employees, and agents shall act in an independent capacity during the term of this Agreement and not as officers, employees, or agents of the County, nor shall they have authodtyto contract for or on behalf of, or incur obligations on behalf of, the County. Section 19. DISPUTE_S_. The parties may mutually agree to non-binding mediation services conducted by the Judicial Arbitration and Mediation Services, Inc./Endispute, or its successor, or any other neutral, impadial arbitration service that the parties mutually agree upon in accordance with its rules for such mediation. Section 20. MISCELLANEOUS PROCEDURAL MATTERS, 20.1 Exhibits. All exhibits attached to this Agreement are incorporated herein by reference. 20,2 Incorpora~,ipn of Recitals. The Recltals are specifically incorporated into this Agreement. 20.3 Counterpart.s.. Separate counterpads of this Agreement may be separately signed by each party, ell with the same effect as though the same counterpart had been signed simultaneously by the Padies signing each such counterpart. 20.4 Gender. In this Agreement, the masculine gender includes the feminine and neuter, and the singular number includes the plural, andviceversa, where the context so indicates, 20.5 Effective Date, This Agreement shall be effective and binding upon the Parties on the date this Agreement is signed by the Parties hereto (Effective Date). Draft: May 31, 2001 .7- HA¥-09-O1 WED 04:1~ ~H EXEU~J~jVE U~rlu~ ~ ~u, ~u~ ooo ~uo r, uo 20.6 _Sections and Caption.s.. All references to Sections refer to Sections in this Agreement unless otherwise stated. Captions are for convenience of reference only and do not constitute a podion of this Agreement. 20.7 ~-uccessGrs a'hd Assi.qn§. Tills Agmerheht ShEll be binding upon and inure to the benefit of the Parties hereto and their respective successors and assigns. 20.8 Time. Time is of the essence in each provision of this Agreement. 20.9 _F_udher Assurances. Each party hereto shall, upon the request of the other party hereto, take such other actions and sign such other documents (in recordable form, if required) as may be reasonably required to carrythe provisions of this Agreement into effect. Section 2'1. EN'[IRE AGREE MENT. This Agreement contains the entire agreement and understanding between the Parties. There are no oral understandings, terms, conditions or promises, and no pady has relied upon any representation, express or implied, not contained in this Agreement, This Agreement may only be modified or amended in writing and must be signed by the party, identified in Section 10 of this Agreement, to be charged. IN WI'[NESS WHEREOF, the Parties have executed this Agreement on the date first above written. COUNTY OF RIVERSIDE By: James A. Venable, Chairman Board of Supervisors APPROVED AS TO FORM ATTEST By: Joe S. Rank, Assistant County Counsel By: Gerald A. Maloney, Clerk of the Board CITY OF TEMECULA -8- Draft: May 31, 2001 PH~ ~U, ~U~ ~oo lluo BY:jeff Comercher~,Mayor APPROVED AS TO FORM ATTEST By; City Attorney By: Susan Jones, City Clerk -9- Draft: May 31, 2001