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.
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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
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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
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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
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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
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"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
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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.
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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. ~.
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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
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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).
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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
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BY:jeff Comercher~,Mayor
APPROVED AS TO FORM
ATTEST
By; City Attorney
By:
Susan Jones, City Clerk
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