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Home My WebLink About5.2 AuthCert&Mutual Idemni . 'II... ,""'" ADDE..[) As I-rE.H 5.Z- CITY CLERK File # 1al~0[Q]-@][aJ CITY COUNCIL MEETING DA TE: (August 5, 1997) ITEM ADDED TO AGENDA REQUEST WAS RECEIVED TOO LA TE FOR PREPARA TION OF STAFF REPORT AND ACTION IS REQUIRED PRIOR TO NEXT CITY COUNCIL MEETING (Government Code Section 54954.2) .' Authorization For Assistant City Attorney To Execute Certification and Mutual nuIl/ Indemnification Agreement For Collection of Taxes and Assessments \lP' (prepared By: Paul Rankin, Assistant City Manager) SUBJECT: EXHIBITS ATTACHED: RECOMMENDATION: FINANCIAL STATEMENT: 1. 2. Letter dated July 28, 1997 from the Auditor Controller Resolution Including Proposed Agreement Adopt Resolution The City collects various assessments and prqperty related fees on the Property Tax Bill and without a valid agreement Alameda County will not perfonn these collection services. DESCRIPTION: In November of 1996, the voters of California approved Proposition 218, which added Article xm 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 15, 1997. The adopted 1997/98 City of Dublin anticipates collection of the following assessments, taxes, and property related fees totaling $1,081,432 as outlined below: NIunt Citywide Street Lighting Stagecoach Rd Landscape District Dougherty Road Landscape District Santa Rita Landscape District Dublin EMS Excise Tax Stonn Water Refuse Collection Fee Residential Garbage & Recycling Charges '{ype of Revenue Assessment Assessment Assessment Assessment Special Tax Property Related Fee Property Related Fee Current Budget $ 137,494 56,909 54,064 25,940 71,500 85,665 649,860 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 fonn and content of the proposed Agreement. Staffhas prepared a Resolution (Exhibit 2) which will authorize the Deputy City Attorney to execute the Agreement on behalf of the City of Dublin. It is recommended that the City Council adopt the Resolution. ------------------------------------------------------------------- H1cc-rormslagdastmt.doc COPIES TO: ITEM NO. - AUDITOR-CONTROLLER AGENCY PATRICK O'CONNELL AUDITOR-CONTROLLER/CLERK-RECORDER Jut ~~ 1,1 1997 CITY VI. '- July 28 1997 CITY OF DUBLIN Department of Public Works, City Hall 100 Civic Plaza Dublin, CA 94568 A TTN: Richard Ambrose, City Manager AMENDED PROPOSmON 218 CERTIFICATION The attached certification is the most recent revision developed in consultation with various Cities and Special Districts' attomeys, including Mr. Michael O'Toole, Hayward City Attorney. Please note that the attached certification may be signed by the City Council, or it can be signed by the City's attorney on behalf of the City upon authorization of the City. However, documentation is required to show that the attorney has the authorization to sign and bind the agency to its terms. Please call me if you have any questions at (510) 272-6557. Sincerely, TL:hc . c: Paul S. Rankin, Assistant City Manager Enclosure V;\WPS I DOCS\AOMIN\PROP218C.POC Central Collections Carl Gogna. D1v1sion 'Chief 4400 MacArthur Blvd. Oakland. CA 94619 Tel. (5101 535-6300 Fax (510) 535-6330 QIC 21320 Office of the Auditor-Controller Charles Roach. Chief Deputy Auditor 1221 Oak St.. Rm 249 Oakland, CA 94(;12 Tel. (5101272-6565 Fax (5101 272-6502 Q]C 20109 Clerk-Recorder Malenna Gonsalves. Assistant Recorder 1225 Fallon St.. Rm 100 Oakland. CA 94612 Tel. 15]01272-6362 Fax (510)272-6382 QIC 20715 EXHIBIT 1 RESOLUTION NO. M 97 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DUBLIN ********* Authorizing The Deputy City Attorney To Execute A Certification and Mutual Indemnification Agreement With Alameda County To Provide For the Collection of Certain Taxes, Assessments, and Fees On Tbe 1997 /98 l~roperty 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 ofJ996 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 to enter into a Certification and Mutual Indemnification Agreement prior to August 15, 1997; and WHEREAS, the City Council considered approval of such an Agreement at its meeting on August 5, 1997. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Dublin does hereby authorize Rick W. Jarvis, Deputy 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 5th day of August, 1997. AYES: NOES: ABSENT: ABSTAIN: Mayor ~ ATTEST: City Clerk H/cc-fonns/reso.doc EXHIBIT 2 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 1997/98 Secured Property Tax Bill by the City of Dublin met the requirements of Proposition 218 that added Articles XIIIC and XIIID to the State Constitution. The City of Dublin agrees to defend, indemnify and hold harmless the County of Alameda, its Board of Supervisors, its Auditor-Controller/Clerk-Recorder, its officers and employees, for those taxes, assessments and 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 .fin.al judgment 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. Tii" OQ\101;)' Qf AlAmeda hereby aareea to defend. hutemnify and hold harmless the ~ity 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 from the tax assessment or fee. The above terms are accepted by the public agency and I further certify that I am authorized to sign this agreement and bind the public agency to its terms. Dated: August 5, 1997 Dated: CITY OF DUBLIN COUNTY OF ALAMEDA By: By: (Signature) RICK W. JARVIS Deputy City Attorney (Print Name) (Print Title) g:l/Inance!fOnn,lcm.tmlddoc EXHIBIT A