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HomeMy WebLinkAbout06 - Collection of School FeesCITY OF NEWPORT BEACH CITY COUNCIL STAFF REPORT Agenda Item No. 6 October 10, 2006 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: Administrative Services Department Dennis C. Danner, Administrative Services Director, (949) 644 -3123, ddanner@city.newport-beach.ca.us SUBJECT: Agreement for Collection of School Fees Pursuant to Education Code Section 17620 UE: Should the City enter into an Agreement with the Newport-Mesa Unified School District to allow the City to collect development fees on behalf of the School District? RECOMMENDATION: Approve the Agreement to allow the City to collect development fees on behalf of the Newport-Mesa Unified School District. DISCUSSION: Currently the Newport-Mesa Unified School District is permitted to levy and collect development fees pursuant to Education Code Section 17620. These fees are currently collected by the School District. As an improvement to customer service, the School District is desirous of the City to collect these fees on behalf of the School District at the same time the City levies and collects City development fees. The fees attributable to the School District will be remitted by the City to the District on a monthly basis. Since the School District fees will be levied and collected at the same time as City development fees, the City will not charge an administrative fee to the School District for the performance of this service. All terms and conditions of the fee collection arrangement are included in the proposed Agreement. Environmental Review: None required. Public Notice: With City Council Agenda Funding Availability: None Required. Alternatives: To not adopt the Agreement, thereby precluding the collection of Newport- Mesa Unified School District development fees by the City on behalf of the School District. Prepared and Submitted by: Dennis C. Danner, Director Attachment: Agreement AGREEMENT FOR COLLECTION OF SCHOOL FEES PURSUANT TO EDUCATION CODE SECTION 17620 THIS AGREEMENT is entered into this day of , 2006, by and between the City of Newport Beach ( "City ") and the Newport -Mesa Unified School District ( "District "). WITNESSETH: WHEREAS, District is authorized, pursuant to Education Code Section 17620, to levy and collect additional development fees; and WHEREAS, District and City wish to provide for the collection of the fees, including the payment to City of administrative costs for the collection thereof under Education Code Section 17620, et seq. and Government Code Section 65995 et seq.; and WHEREAS, District desires to enter into an agreement with City for City to collect and otherwise administer the fees on behalf of District pursuant to Education Code Section 17620(a)(4). NOW, THEREFORE, the parties hereto agree as follows: 1. Entire Aareement. This agreement constitutes the entire Agreement between the parties with respect to any matter referenced herein and supersedes any and all other prior writings and oral negotiations. This agreement may be modified only in writing, and signed by the parties in interest at the time of such modification after approval by each party's respective legislative body. The terms of this Agreement shall prevail over any inconsistent provision in any other contract document appurtenant hereto. 2. Term. The term of this Agreement shall not exceed five (5) years, through and including June 1, 2011. 3. Amount of Fees. District shall provide, in writing, the effective dates and amounts per square foot of assessable and chargeable space for City to use in calculating the total fees due at least thirty (30) days prior to the effective date of such fees. 4. Updates. District shall provide timely updates to any pertinent information needed by City in the performance of this Agreement. 5. Prior Fees. Where prior school fees have been paid or an alternative agreement for the payment of school fees has been entered into with District, District shall instruct City as to the amount and extent credit to be applied to the particular development project. 6. Calculation. City shall calculate the amount of the fees in compliance with Education Code Sections 17620 et seq. and Government Code Sections 65995 et seq. as amended and any other applicable statutes. 7. Time of Collection. City shall collect the fees from the parties upon whom the fees are imposed at the time of issuance of the building permit AS AUTHORIZED PURSUANT TO Government Code Section 66007(b). 8. Transmission. Fees collected pursuant to this Agreement shall be transmitted monthly to the District. 9. Administrative Charge. In consideration of the fee allowed for recovery of processing and other administrative services provided by City under this Agreement pursuant to Education Code 17620(a)(5), City shall retain zero percent (0 %) of all fees collected as a charge for administration and collection of the fees. 10. Disputes. Should any disputes arise concerning the amount or application of the fee or if any party upon whom the fee has been imposed protests the establishment or imposition of the fee (in accordance with Government Code Section 66020) for any individual project, the matter shall be referred to District for resolution and District shall instruct City in writing as to course of action. 11. Waiver. a. District expressly waives any right, title, interest, claim, action or recourse that District may have against City for.perceived or actual miscalculations by City of the fee for each development project calculated by City staff. b. Notwithstanding the above, this Agreement shall not be construed to limit or restrict in any way the rights of City or District from attempting to collect fees from any developer for any development project when it is believed by District or City that the fees were improperly calculated. 12. Indemnity. District shall indemnify and defend City against and hold it harmless from any and all loss, damage and liability for damages, including attorney's fees and other costs of defense incurred by City as a result of the fees by City hereunder. 13. Changes in Procedure. In the event District perceives a need for change in the general procedure used by City staff in assessing the fees, representatives of District and City shall meet to discuss changes in the procedure. If City and District are unable to come to an agreement, this contract may be terminated, as set forth below. 14. Termination. Either party may terminate this Agreement by providing ninety (90) days prior written notice to the other party. CITY OF NEWPORT BEACH City Manager ATTEST: Deputy City Clerk APPROVED AS TO FORM: City Attorney NEWPORT -MESA UNIFIED SCHOOL DISTRICT H. Reed, Deputy Superintendent, CBO Business Services ATTEST: APPROVED AS TO FORM: