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HomeMy WebLinkAbout11 - Agreement for Collection of Special Taxes, Fees, Charges and Assessments CTY OF J+ - NEWPORT BEACH City Council Staff Report September 22, 2015 Agenda Item No. 11 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: Dan Matusiewicz, Finance Director— (949) 644-3123, dmatusiewicz@newportbeachca.gov PREPARED BY: Evelyn Tseng, Revenue Manager PHONE: 949-644-3453 TITLE: Agreement with County of Orange for Collection of Special Taxes, Fees, Charges and Assessments ("Agreement') ABSTRACT: The County of Orange ("County") annually collects taxes and special assessments on behalf of the City of Newport Beach ("City'), which are included on the County property tax bill. This year, the County has required all cities and districts to sign the attached Agreement before adding such charges to the property tax bill. RECOMMENDATION: a) City Council approve the Agreement with the County of Orange; and b) Authorize the Mayor and City Clerk to execute the Agreement. FUNDING REQUIREMENTS: The compensation provided to the County under this agreement is .30 percent of the original value for each special tax, fee or assessment that is to be collected on the County tax rolls by the County for the City. This amount is retained by the County before the balance of the assessments is provided to the City. DISCUSSION: The City administers annual levies for the Newport Coast Annexation, CIOSA 95-1 and Reassessment District 2012, which are included on the County property tax bill. Beginning in Fiscal Year 2015-2016, the County has required that cities and special districts execute the attached Agreement, which standardizes policies and procedures for the placement of charges on property tax bills across the County. The Agreement outlines the terms by which special assessments will be collected by the County and the compensation payable to the County for this service. The collection fee, .30 percent, is unchanged from prior years and is paid from funds collected by the special districts. The Agreement will continue year to year until terminated by either party. 11-1 ENVIRONMENTAL REVIEW: Staff recommends the City Council find this action is not subject to the California Environmental Quality Act ("CEQA") pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly. NOTICING: The agenda item has been noticed according to the Brown Act (72 hours in advance of the meeting at which the City Council considers the item). ATTACHMENTS: Description Attachment A-Agreement for Collection of Special Taxes, Fees. Charges and Assessments 11-2 ATTACHMENT A Agreement for Collection of Special Taxes, Fees, Charges and Assessments 11-3 AGREEMENT FOR COLLECTION OF SPECIAL TAXES, FEES, CHARGES AND ASSESSMENTS THIS AGREEMENT is made and entered into this_day of 20_ by and between the COUNTY OF ORANGE, a political subdivision of the State of California, hereinafter referred to as "County"and hereinafter referred to as `District". RECITALS The following recitals are a substantive part of this Agreement: WHEREAS, the parties desire to enter into an agreement whereby taxes and special assessments for the District will be collected by the County at the same time and in the same manner as County taxes are collected and the District will pay to the County the fees for collection hereinafter set forth; and WHEREAS, Section 29142 of the Government Code provides that when taxes or assessments are collected by a county for any special district, or zone, or improvement district thereof, excluding a school district, the board of supervisors may provide for a collection fee for such services; and WHEREAS, Section 29304 of the Government Code provides that whenever any special assessment or special assessment taxes are levied upon land or real property by any city, county, district or other public corporation, and the same are to be collected by a County, there shall be added to the amount of the special assessment or special assessment tax an amount fixed by agreement between the county and city, district, public corporation, officer, or body for each special assessment or special assessment tax to be collected; and WHEREAS, Section 51800 of the Government Code provides for the County to collect special assessments on County property tax rolls for cities and districts located in the County, and to enter into an agreement regarding the amount of compensation to be paid to the County for the collection of such assessments; and WHEREAS, when requested by District, it is in the public interest that the County collect on the County tax rolls the special taxes, fees, and assessments for District. NOW, THEREFORE, IT IS AGREED by and between the parties hereto as follows: AGREEMENT 1. Collection Services. County agrees, when requested by District as hereinafter provided, or as required by law, to collect on the County tax rolls the special taxes, fees, and assessments of District, and of each zone or improvement District thereof. 2. Transmission of Information. When County is to collect District's special taxes and assessments, District agrees to notify the Orange County Auditor-Controller of the Assessor's parcel 11-4 numbers and the amount of each special tax, fee, or assessment to County, and including, but not limited to, any act of omission or assessment to be so collected. 3. Certification by the District. The District shall certify to the Orange County Auditor-Controller the fixed charge special assessments in a dollar amount to be applied on each parcel of real property which parcel shall be designated by the assessment (i.e., parcel) number shown on the County Secured Assessment Roll for the year in which the assessment is to be collected.. 4. Verification by District. It shall be the obligation of the District prior to the time of delivery to the Orange County Auditor-Controller of the fixed charge special assessment roll to check the County Secured Assessment Roll after it is filed by the Orange County Assessor with the Orange County Auditor-Controller to verify that the parcel numbers on the assessment roll for fixed charge special assessments certified by the District correspond with the assessment (i.e., parcel) numbers shown on the County Secured Assessment Roll. Any changes in special assessment data previously certified to the Orange County Auditor-Controller by the District, which changes occur as a result of such verification, shall be certified by the District to the Orange County Auditor- Controller . 5. Collection Fee. County will charge the sum of 0.30 percent (0.30%) of the original value for each special tax, fee, or assessment that is to be collected on the County tax rolls by the County for the District. 6. Charge for Revision of Assessment. After the roll has been delivered by the Orange County Auditor-Controller to the Orange County Tax Collector the County will charge the District for each fixed charge special assessment changed or deleted. Said charge shall be $15.00 for each assessment or parcel number placed on the County Secured Assessment Roll. Payment shall be submitted to the Orange County Auditor-Controller with the request for the change or deletion. 7. Modification of Collection Fees and Charges. The County reserves the right to increase or decrease any charges herein provided in proportion to any changes in costs incurred by the County in providing the services described herein, provided that written notice of any increase or decrease in charges shall be given by the County to the District on or before May 15 of any year during the term of the Agreement. 8. Authority for Levy and Compliance with Law. District warrants that the taxes, fees, or assessments imposed by District and collected pursuant to this Agreement comply with all requirements of state law, including but not limited to Article XIIIC and XIIID of the California Constitution (Proposition 218). 9. Release. District hereby releases and forever discharges County and its officers, agents and employees from any and all claims, demands, liabilities, costs and expenses, damages, causes of action, and judgments, in any manner arising out of District's responsibility under this agreement, or other action taken by District in establishing a special tax, fee, or assessment and implementing collection of special taxes or assessments as contemplated in this agreement, including but not limited, any required remedial action in the case of delinquencies in such assessment payments or the issuance, sale, or administration of any bonds issued in connection with the District's program. 2 11-5 10. Indemnification. District agrees to and shall defend, indemnify and save harmless County and its officers, agents and employees ("indemnified parties") from any and all claims, demands, liabilities, costs and expenses. damages, causes of action, and judgments, in any manner arising out of any of District's responsibility under this agreement, or other action taken by District in establishing a special tax, fee, or assessment and implementing collection of special taxes, fees, or assessment as contemplated in this agreement, including but not limited, any required remedial action in the case of delinquencies in such assessment payments or the issuance, sale, or administration of any bonds issued in connection with the District's program. 11. Cooperation. District agrees that its officers, agents and employees will cooperate with County by answering inquiries made to District by any person concerning District's special tax, fee, or assessment, and District agrees that its officers, agents and employees will not refer such individuals making inquiries to County officers or employees for response. 12. Assignment. District shall not assign or transfer this agreement or any interest herein and any such assignment or transfer or attempted assignment or transfer of this agreement or any interest herein by District shall be void and shall immediately and automatically terminate this agreement. 13. Term of Agreement. All existing agreements between the County and District pertaining to collection of taxes and special assessments by the County for the District shall be terminated upon the execution of this Agreement. This Agreement shall continue from year to year and shall be subject to cancellation by either party by giving written notice to the other party of cancellation prior to July 1 st of the preceding fiscal year. 14. Waiver. County or District's waiver of breach of any one term, covenant, or other provision of this agreement, is not a waiver of breach of any other term, nor subsequent breach of the term or provision waived. IN WITNESS WHEREOF, the Parties hereto have signed this Agreement as of the day and year first above written. DISTRICT By: Its: COUNTY OF ORANGE By: Its: 3 11-6 APPROVED AS TO FORM: By: Counsel to District By: Deputy County Counsel APPROVED AS TO FORM: CITY ATTORNEY'S OFFICE Date- F3 ate:ny, «�( Aaron C. Harpj City Attorney Ai 4 11-7