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Home My WebLink AboutItem 4.15 Mutual Indemnification (2) CITY CLERK File # DGl[1]lC2l-~~ . AGENDA STATEMENT CITY COUNCIL MEETING DATE: (July 7, 1998) Authorization For City Attorney To Execute Certification and Mutual Indemnification Agreement For Collection of Taxes and Assessments (prepared By: Paul Rankin, Assistant City Manager) SUBJECT: EXHDU:rS ATTACHED: 1. Letter dated June 15, 1998 from the Auditor Controller 2. Resolution Including Proposed Agreement RECOMMENDATION: ~AdoPt Resolution The City collects various assessments and property related fees on the Property Tax Bill and without a valid agreement Alameda County will not - - - perform these collection services. FINANCIAL STATEMENT: DESCRIPTION: In November of 1996, the voters of California approved proposition 218, which added Article XIII D to the State Constitution. The legislation substantially revised the procedures required for the collection of assessments and property related fees. The Auditor Controller has required each agency placing amounts on the Property Tax roll, to enter into an agreement providing indemnification in the event that amounts collected with the property taxes are legally challenged. (Exhibit 1) The City must file its items to be collected not later than August 10, 1998. The adopted 1998/99 City of Dublin anticipates collection of the following assessments, taxes, and property . related fees totaling $1,021,910 as outlined below: ~ Citywide Street Lighting Stagecoach Rd Landscape District Dougherty Road Landscape District Santa Rita Landscape District Dublin EMS Excise Tax Residential Garbage & Recycling Charges Type of Revenue Assessment Assessment Assessment Assessment Special Tax Property Related Fee Change In Rate From Prior Fiscal Y r No Change No Change No Change Reduced No Change Increase - All affected Properties were noticed and public hearing conducted Current Budget $ ] 44,900 54,490 54,060 o 76,680 691,780 The County Auditor has requested that the City demonstrate that the City Attorney has authorization to execute the agreement on behalf of the City. The Agreement will release the County from liability in the event of a challenge related to City compliance with Proposition 218 in the process used to adopt the City fees, taxes, and assessments. Likewise, the City will receive protection from the County in the event the County was negligent. The City Attorney has reviewed and approved the form and content ofthe proposed Agreement as shown in the attachment to Exhibit 2. Staff has prepared a Resolution (Exhibit 2) which will authorize the City Attorney to execute the Agreement on behalf of the City of Dublin. It is recommended that the City Council adopt the Resolution. . ------------------------COPIESTO~---------------~:::~~--~:~~ GlProp218f98agcert.doc ALAl\1EDA COUNTY AUDITOR-CONTROLLER AGENCY PATRICK O'CONNELL AUDITOR-CONTROLLER/CLERK-RECORDER June 15, 1998 RECEIVED -- !I\! 0 ~~ lngo ,) I... f-,. ~ 0 01! Y I....)r UUwLi/\l CITY OF DUBLIN P.O. Box 2340 Dublin, CA 94568 Attention: Kay Keck, City Clerk CERTIFICATION OF TAXES, ASSESSMENTS & FEES Enclosed are six original Certification and Mutual Indemnification Agreements to collect special taxes, assessments and fees (hereafter referred to as "assessments") on the County 1998/99 Secured Property Tax Roll. . Please have the appropriate individuals sign the Agreements and return all six originals to my attention at the Office of Auditor-Controller, 1221 Oak Street, Room 238, Oakland, CA 94612. Our office will request the Board of Supervisors to sign the Agreements and will return an executed original to you when completed. Please submit the certification statements along with your annual assessments data to our office no later than August 10, 1998. It is important to note that no assessments will be processed for cities, special districts and schools without the certification statements_ If you have any questions, please call me at (510) 272-6557. Sincerely, Thomas Lum Tax Manager ltaxes\p218.98 .:11 Collections Manning, Division Chief -'-_ Oak 51., Rill 22ll Oakland. CA \J4(; 12 Tel. (510) 2lll!-9YOll Fax (510) 2llX-9977 Office of the Auditor-Controller Charles Roach, Chief Deputy AudilOr 1221 Oak SI., Rill 249 Oakland, CA ')4(,12 Tel. (511)) 272-(,5115 Fax (51 ll) 272-ti5ll2 Clerk-Recorder M:llind.. Jones, Division Chief 1225 Fallon SI., Rill Illll Oakl..nd, CA \)-l1112 Tcl. (5Ill) 272-03(,2 Fax (5 J 0) 272-6::11-:2 E~~,\\;\t L RESOLUTION NO. - 98 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DUBLIN ********* AUTHORIZING THE CITY ATTORNEY TO EXECUTE A CERTIFICATION AND MUTUAL INDEMNIFICATION AGREKMENT WITH ALAMEDA COUNTY TO PROVIDE FOR THE COLLECTION OF CERTAIN TAXES, ASSESSMENTS, AND FEES ON THE 1998-99 PROPERTY TAX ROLL WHEREAS, the City of Dublin utilizes the Alameda County Property Tax Bill to collect certain Taxes, Assessments, and Fees, which are established and levied by the City of Dublin; and WHEREAS, in November of 1996 California voters approved Proposition 218, which amended the procedures required in order for cities to enact certain assessments, fees, and taxes; and WHEREAS, Alameda County has indicated that they will require agencies utilizing the 1998-99 Property Tax Roll for these purposes, to enter into a Certification and Mutual Indemnification Agreement prior to August 10, 1998; and WHEREAS, the City Council considered approval of such an Agreement at its meeting on July 7, 1998. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Dublin does hereby authorize Elizabeth H. Silver, City Attorney to execute the Agreement substantially in the form attached as Exhibit A and by reference made a part hereof. PASSED, APPROVED AND ADOPTED this 7th day of July, 1998. AYES: NOES: ABSENT: ABSTAIN: Mayor ATTEST: City Clerk G/prop218/rescertx..doc e ~~~~ '~4- ?- . . . CERTIFICATION AND MUTUAL INDEMNIFICATION AGREEMENT . The City of Dublin hereby certifies that to its best current understanding of the law, the taxes, assessments and fees placed on the 1998-99 Secured Property Tax Bill by the City of Dublin meet the requirements of Articles XIIIC and XIIID to the State Constitution ("Proposition 218"). The City of Dublin agrees to defend, indemnify and hold harmless the County of Alameda, its Board of Supervisors, its Audit.or-Controller/Clerk Recorder, its officers and employees, for those taxes, assessments aild fees which are subject to Proposition 218 and which are challenged in any legal proceeding on the basis that the City of Dublin has failed to comply with the requirements of Proposition 218. The City of Dublin will pay any firulljud2IDent imposed upon the County of Alameda and the City of Dublin as a result of any act or omission on the part of the City of Dublin in failing to comply with the requirements of Article XIIID of the Constitution. The County of Alameda hereby agrees to defend, indemnify and hold harmless the City of Dublin, its employees, agents and elected officials from any and all actions, causes of actions, losses, liens, damages, costs and expenses resulting from the sole negligence of the County of Alameda in assessing, distributing or collecting taxes, assessments and fees on behalf of the City of Dublin. . If a tax, assessment or fee is challenged under Proposition 218 and the proceeds are shared by both the City of Dublin and the County of Alameda, then the parties hereby agree that their proportional share of any liability or judgment shall be equal to their proportional share of the proceeds form the tax, assessment or fee. The above terms are accepted by the City of Dublin and I further certify that I am authorized to sign this agreement and bind City of Dublin to its terms. CITY OF DUBLIN: By: Date: Elizabeth H. Silver City Attorney COUNTY OF ALAMEDA Date: By: Its: . K2/H/cc-mtgs/indmagmt.doc J :\WPD\MNRSW\114\Ol \AGREE\1998\INDEMNIF.625 EHS:rja RESOLUTION EXHIBIT A