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Home My WebLink AboutC-3520 - Property Tax PaymentU 0p m R�1 County of Orange California Michael Schumacher, Ph.D. County Executive Officer County F.recutive Office 10 Civic Center Plaza Third Floor Santa Ana, California 92701 -4062 7e1: (714) 834 -2345 Fax: (714) 834 -4416 Web: www.oc.ca._2ov May 14, 2002 City of Newport Beach ATTN: LaVonne M. Harkless, City Clerk 3300 Newport Blvd. Newport Beach, CA 92663 -3884 Dear Ms. Harkless, E 'O. `AY 17 : 6:FZ On April 9. 2002 the Board of Supervisors of the County of Orange approved the agreement with Orange County Fire Authority and directed the County AuditorXontroller to transfer property tax funds to the City of Newport Beach for the Newport Coast Annexation for the period January 1. 2002 through and including June 30. 2002. Attached please find a copy of the agreement for your records. If you have any questions regarding the agreement, please call me at (714) 824 -3967 or via e -mail at Paul.Lannin2(iloca;ov.com. Sincerely. Paul Lanning Redevelopment Manager cc: Joan Steiner, Orange County Fire Authority Enclosure AGREEMENT BETWEEN ORANGE COUNTY FIRE AUTHORITY, COUNTY OF ORANGE AND CITY OF NEWPORT BEACH REGARDING PROPERTY TAX EXCHANGE RELATED TO NEWPORT COAST ANNEXATION, THIS AGREEMENT is made and entered into by and among the Orange County Fire Authority ( "OCFA "), the County of Orange ( "County') and the City of Newport Beach ( "City ") and shall become effective upon the date of approval of the governing board of the last party to approve it. RECITALS WHEREAS City has completed proceedings to annex previously unincorporated territory within the County of Orange generally known as the "Newport Coast' area which is specifically described and depicted on Attachment "A" ( "Annexation Area "), and WHEREAS prior to January 1, 2002, OCFA provided Fire Services, including fire prevention, fire suppression, emergency medical services and hazardous materials response, to the Annexation Area, and WHEREAS effective January 1, 2002, City has been providing, and will continue to provide, Fire Services to the Annexation Area, and WHEREAS Article IV, Section 3.A of the Amended Joint Powers Agreement relating to OCFA (the "AJPA ") requires the County to transmit to OCFA the structural fire fund property tax revenues received from the Annexation Area, and WHEREAS the amount of structural fire funds attributable to the Annexation Area for the period of January 1, 2002, through June 30, 2002 ( "Service Period "), is 1 estimated to be one million four hundred thirty -one thousand nine hundred forty -two dollars ($1,431,942), and WHEREAS OCFA and City agree that such structural fire funds should be allocated to the party providing such Fire Services; NOW THEREFORE, in consideration for the promises, covenants and conditions set forth herein, the parties agree as follows: AGREEMENT 1. The Recitals set forth hereinabove are true and correct. 2. County is authorized to transmit to City structural fire fund moneys allocated to the Annexation Area for the Service Period that would have otherwise been payable to OCFA pursuant to the AJPA, estimated by the parties to be one million four hundred thirty -one thousand nine hundred forty -two dollars ($1,431,942.00). 3. All provisions of that certain Annexation Agreement between City and OCFA "entered into as of November 20, 1997," not inconsistent herewith, shall remain in full force and effect. K IN WITNESS WHEREOF the parties hereto have caused this Agreement to be executed as set forth herein below. ORANGE COUNTY FIRE AUTHORITY 1 Dated: By: Susan Ritschel Chairperson ATTEST: Dated: ` I —Oa By. �d CLAUc t. ��CLAacy` Clerk of the Authority APPROVED AS TO FORM: TERRY C. ANDRUS GENERAL COUNSEL By: Dated: 3 - �'v"T Dated: -3&s LOD- APPROVED AS TO FORM: ROBERT H. BURNHAM CITY ATT RNEY By: Dated: 3 -2-5-0 —� CITY OF NEWPORT BEACH By: Tod W. Ridge y Mayor ATTEST: Dated: ?,// 9/4 Z [Signatures continued on Page 4] 3 0 APPROVED AS TO FORM: ROBERT H. BURNHAM CITY ATTORNEY Dated: 611-,l -0 9 COUNTY OF ORANGE By: SIGNED AND CERTIREO THAT A COPY ^F THIS DOCUMENT HAS BEEN DELNERED ATTEST THE : OF TH BOARD Cler the Board APROVED AS TO FORM: BENJAMIN P. DE MAYO COUNTY COUNSEL Dated:' o Z By: —t t s\ceoorl \Local 4 • 0 ATTACHMENT "A" Newport Coast Annexation Area RLOEKS 5151, 515$ 5151, 5151 525J, 5J51, 5J52 1/000ES. VARIOUS /�� BONITA -I /; • • ITEM S14 TO: Members of the Newport Beach City Council FROM: Homer L. Bludau, City Manager SUBJECT: Agreement with Orange County Fire Authority and the County of Orange: Property Tax Payment Authorize the Mayor to execute the attached Agreement. ACTION: BACKGROUND: When the City annexed the Newport Coast, it became entitled to receive a portion of the property taxes (sometimes referred to on tax bills as the I% Basic Levy) that Newport Coast property owners pay to the County Treasurer -Tax Collector and which are then distributed to: • The County of Orange's General Fund • The Orange County Fire Authority (OCFA) • Newport -Mesa Unified School District • The Irvine Ranch Water District • Coast Community College District • The Orange County Transportation Authority • The Orange County Vector Control District • and several others MAR ) z 2002 These property taxes are NOT the special assessments that people in the Newport Coast (and many in the pre - annexation boundaries of Newport Beach) pay. The 1% Basic Levy refers solely to the Proposition 13- limited levy that reflects 1 % of the assessed value of property. The Newport Coast annexation became effective January 1, 2002. If this annexation were a typical one, the County Auditor - Controller would automatically direct all property taxes re- directed by the annexation to the City for the period that begins July 1, 2002. The Auditor - Controller has done so. But the Auditor - Controller does not specifically do so for the property taxes due the City between January 1, 2002 and June 30, 2002 (about $1.4 million in the case of OCFA). The attached agreement between the County of Orange, OCFA, and the City remedies this six-month situation by directing that the County allocate $1,431,942.00 from the OCFA's Structural Fire Fund to the City for the period of January 1, 2002 through June 30, 2002. 0 0 If approved by your Council, the Agreement would be approved by OCFA on March 14, 2002 and shortly thereafter by the Orange County Board of Supervisors. We expect to soon see at least one more agreement similar to this that affects the shares of the 1 % Basic Levy received by the County of Orange General Fund (about $408,400.00) and by the Orange County Library District (about $212,418.00). ATTACHMENT: Proposed Agreement between the City of Newport Beach, the County of Orange, and the Orange County Fire Authority regarding the allocation of 1 % Basic Levy property taxes in the Newport Coast for the period between January 1, 2002 and June 30, 2002. 2 0 0 AGREEMENT BETWEEN ORANGE COUNTY FIRE AUTHORITY, COUNTY OF ORANGE AND CITY OF NEWPORT BEACH REGARDING PROPERTY TAX EXCHANGE RELATED TO NEWPORT COAST ANNEXATION THIS AGREEMENT is made and entered into by and among the Orange County Fire Authority ( "OCFA "), the County of Orange ( "County') and the City of Newport Beach ( "City') and shall become effective upon the date of approval of the governing board of the last party to approve it. RECITALS WHEREAS City has completed proceedings to annex previously unincorporated territory within the County of Orange generally known as the "Newport Coast' area which is specifically described and depicted on Attachment "A" ( "Annexation Area "), and WHEREAS prior to January 1, 2002, OCFA provided Fire Services, including fire prevention, fire suppression, emergency medical services and hazardous materials response, to the Annexation Area, and WHEREAS effective January 1, 2002, City has been providing, and will continue to provide, Fire Services to the Annexation Area, and WHEREAS Article IV, Section 3.A of the Amended Joint Powers Agreement relating to OCFA (the "AJPA ") requires the County to transmit to OCFA the structural fire fund property tax revenues received from the Annexation Area, and WHEREAS the amount of structural fire funds attributable to the Annexation Area for the period of January 1, 2002, through June 30, 2002 ( "Service Period "), is 1 3 0 0 estimated to be one million four hundred thirty -one thousand nine hundred forty -two dollars ($1,431,942), and WHEREAS OCFA and City agree that such structural fire funds should be allocated to the party providing such Fire Services; NOW THEREFORE, in consideration for the promises, covenants and conditions set forth herein, the parties agree as follows: AGREEMENT 1. The Recitals set forth hereinabove are true and correct. 2. County is authorized to transmit to City structural fire fund moneys allocated ;o the Annexation Area for the Service Period that would have otherwise been payable to OCFA pursuant to the AJPA, estimated by the parties to be one million four hundred thirty -one thousand nine hundred forty -two dollars ($1,431,942.00). 3. All provisions of that certain Annexation Agreement between City and OCFA "entered into as of November 20, 1997," not inconsistent herewith, shall remain in full force and effect. 2 9 0 11 IN WITNESS WHEREOF the parties hereto have caused this Agreement to be executed as set forth herein below. ORANGE COUNTY FIRE AUTHORITY Dated: By: Susan Ritschel Chairperson ATTEST: Dated: APPROVED AS TO FORM: TERRY C. ANDRUS GENERAL COUNSEL 0 Dated: Dated: APPROVED AS TO FORM: ROBERT H. BURNHAM CITY ATTORNEY M 0 Clerk of the Authority CITY OF NEWPORT BEACH By: Tod W. Ridgeway Mayor ATTEST: City Clerk Dated: [Signatures continued on Page 4] 3 j 0 0 COUNTY OF ORANGE Dated:_ By: Dated: APROVED AS TO FORM: BENJAMIN P. DE MAYO COUNTY COUNSEL ATTEST: Clerk of the Board Dated: 4 f. 0 • Newport Coast Annexation Area SLOCxS 5151. 5152. 5251, 5252 525J, 5J51, 5J52 MOOUIE5: VARIOUS BONITA - (- CANYON ROAD I NEW FORD / ROAD / ANNEXATION NO. 1 (FRASIER AN, NEXATION) CITY or CE SAN IIOAQUIN HILLS TRtNSPORTATION ` CORRIDOR I NSITY Or 1fi•\�� I / OT EA \ Izo I s I 9lIlls, I Q PACIFIC COAST —21 L — _I� HIGHWAY I � INDEX MAP NOr ro SCAU' ®2 INDICATES SHEET NUMBER I, � I I. I I I I I 1 cove — 91 ATE PART: I I i I , ('NEWORT CO. CAOI -OS TO THE 5 7