HomeMy WebLinkAboutResolution 126-85 RESOLUTION NO. 126-85
RESOLUTION OF THE COUNCIL OF THE CITY OF ATASCADERO
AUTHORIZING THE MAYOR TO ENTER INTO AGREEMENT
WITH THE COUNTY OF SAN LUIS OBISPO
TO EXCHANGE PROPERTY TAX REVENUE , TRANSFER
OF APPROPRIATION LIMIT AND SETTLE AND RELEASE OF ALL CLAIMS.
WHEREAS the City of Atascadero has disputed the property tax
transfer by the County to the City upon incorporation on June 5 ,
1979; and
WHEREAS the transfer of property tax by the County resulted
from assumptions , formulas and Government Code sections which
were in a state of flux due to the passage of Proposition 13 ; and
WHEREAS the City has contested the property tax base trans-
fer was made under erroneous assumptions , formulas and Government
Code sections; and
WHEREAS the County disputes allegations by the City that
property tax base was made in an erroneous manner; and
WHEREAS the City and Countv have negotiated an amiable set-
tlement to the disputed property tax transfer; and
WHEREAS the negotiated settlement addresses other outstand-
ing issues between the County and the City , including the funding
of a new library to be constructed in the City of Atascadero as
well as incorporation of the Sanitation District; and
WHEREAS terms and conditions of the negotiated settlement
are contained in an agreement between the City and County entit-
led, "Agreement to Exchange Property Tax Revenues , Transfer of
Appropriation Limit and Settle and Release of All Claims" ;
NOW, THEREFORE , the Atascadero City Council authorizes the
Mayor to enter into agreement with the County of San Luis Obispo
to exchange property tax revenues , transfer of appropriation lim-
it and settle and release of all claims.
On motion by Councilman Molina and seconded by Coun-
cilwoman Norris the foregoing resolution is hereby adopted
in its entirety by the following roll-call vote:
AYES: COUNCILMEAIBERS HANDSITY, MACKEY, MOLINA, NORRIS AND
MAYOR NELSON.
NOES: NONE
ABSENT: NONE
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RES . NO. 126-85
Page Two
ADOPTED: 11/12/85
1 , ROLFE NELSON, Mayor
ATTEST:
'.ROBE9 M..,JONES, City Clerk
APPROVED AS TO CONTENT:
Vf' a, �
MICHAEL B. SHELTON, City Manager
APPROVED AS TO FORM:
ROBERT M. JONES,-"'City Attorney
AGREEMENT TO EXCHANGE PROPERTY TAX
REVENUE, TRANSFER OF APPROPRIATIONS LIMIT
AND SETTLE AND RELEASE OF ALL CLAIMS
THIS AGREEMENT is made this 12th day of November , 1985, by
and between City of Atascadero, a Municipality of the State of
California, (hereinafter referred to as "CITY") , The Atascadero
County Sanitation District, and all subsidiary districts and
entities controlled by City' s Council, and the County of San Luis
Obispo, a political subdivision of the State of California, and
all subsidiary districts and entities controlled by County' s
Board of Supervisors (hereinafter referred to as "COUNTY") . The
San Luis Obispo County Local Agency Formation Commission
(hereinafter referred to as "LAFCO") shall be treated as a third
party beneficiary of this agreement and shall be entitled to all
of the benefits provided to County hereunder.
WHEREAS, on June 5, 1979 the people of the Community of
Atascadero voted in favor of changing the governmental structure
of that community by reorganizing and dissolving several
districts and incorporating the community's water, firefighting ,
lighting, and sanitation district services into City services to
be provided by the City, in addition to any other services which
cities are empowered to perform under the general laws of the
State of California; and
WHEREAS , said incorporation was being considered by LAFCO and
eventually became effective during a period of some uncertainty
in laws governing tax proceeds , due to the implementation of
Article XIII(A) of the California Constitution; and
WHEREAS, pursuant to Section 99(e) of the Revenue and
Taxation Code, as it then read, County adopted Resolution No.
79-492, transferring to City $111,867 in tax base from the
dissolved Atascadero Lighting District and the County' s General
fund tax revenue to City; and
WHEREAS, City has contended that City' s tax base transfer
from said Lighting District and County should have been
calculated under Government Code Section 54790.3, which
contention County disputes ; and
WHEREAS, pursuant to Revenue and Taxation Code Section 99(b)
(as it then read) County adopted Resolution 80-218, and City
adopted Resolution 15-80 accepting a negotiated exchange of
property tax revenue from the Atascadero Fire Protection District
to City; and
WHEREAS, no dispute exists concerning said negotiated
exchange of property tax revenue; and
WHEREAS, the dissolved water district did not have a tax base
to transfer; and
WHEREAS, the Atascadero Garbage District was dissolved
effective fiscal year 1982-83; and
WHEREAS , City contended that it was entitled to a portion of
the tax revenue attributable to said Garbage District, which
contention was rejected with County' s adoption of Resolution
81-451 ; and
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WHEREAS, the parties never formally concluded a negotiated
exchange of property tax revenue for the Atascadero County
Sanitation District; and
WHEREAS, City has from time to time contended that County
should have provided more, or better services to City under
Government Code Section 35448, which County has disputed; and
WHEREAS, City and County seek to have County remove the Free
Library from its present location in City Hall, and cause a new
library building to be constructed; and
WHEREAS, the parties hereto are desirous of settling all
matters related in any way to these various disputes .
WHEREAS, Revenue and Taxation Code Section 99(j) allows
renegotiation of property tax transfers ; and
NOW WHEREAS, Government Code Section 7904 appears to require
transfer of appropriation limitations to accompany transfer of
tax base.
NOW, THEREFORE, for and in consideration of the covenants ,
agreements and considerations set forth herein, it is agreed as
follows :
1. In light of City' s desire to relocate the Free Library,
branch from its present location to another location in City, and
in recognition of County' s policy to require the recipient
community to pay one-half the cost of such an improvement, it is
agreed that County shall appropriate $295,000 in fiscal year
1985-86 , which sum shall be credited toward City' s one-half share
of the costs of said relocation project.
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If the relocation project requires the construction of a new
building, which is the most costly option under consideration, it
is presently estimated that the maximum total cost of said
project would be $990,000. City' s one-half share of said maximum
total cost would be made up by a contribution of City-owned land
known as the Polin site, worth approximately $140,000, $33,000 in
donations from civic organizations from within City, $27,000 in
City funds, together with the aforesaid $295,000 credit. County
shall not be required to pay more than one-half of the costs of
the relocation project .
City agrees to provide County with a grant deed to the City
contributed land upon County' s request. Upon County' s request,
City also agrees to pay County such other funds as are necessary
to make up City' s one-half share.
County shall retain all sums for the project in a Project
account and draw down on the account as debt is incurred for the
Project. Interest shall be attributed from date of deposit,
prorata to each party' s contributions to the account. If at the
conclusion or termination of the Project, there are sums
remaining in the account, then they shall be distributed between
City and County in shares reflecting each party' s contributions
to the account, together with the aforesaid attributed interest.
2 . County hereby transfers $295,000 of its General Fund
property tax base to City, said transfer to be effective on
July 1 , 1986 , and thereafter. County also transfers such
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portions of its general fund property tax increment to City as
may be necessary to assure City a ratio of nineteen (19%) for
each valid tax code area in City on July 1 , 1986, provided that
this percentage is subject to negotiation, or such other process
as may be permitted by State law for any annexations or other
jurisdictional changes after July 1, 1986.
3 . County hereby transfers $295,000 of its General Fund
appropriation limitation to City effective July 1 , 1986.
4. City agrees to use due diligence to wind up the affairs
of the Atascadero County Sanitation District and to dissolve that
district. County shall continue to cooperate in City' s efforts
in this regard. The parties understand that this agreement does
not terminate the dispute which was the subject of Joint
Resolution 3-80, but that City and Atascadero County Sanitation
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District, by and through the City Council, shall and hereby does
assume all responsibility for the orderly winding up of the
affairs and the termination of the Atascadero County Sanitation
District in accordance with State law, the San Luis Obispo County
Local Agency Formation Commission Resolution No. 79-1 and in
accordance with said Joint Resolution No. 3-80.
City and Atascadero County Sanitation District shall defend,
indemnify and hold harmless the County, its officers , agents and
employees , and each of them, for all loss , expense or liability
arising directly or indirectly from the delayed dissolution of
the Atascadero County Sanitation District .
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The foregoing indemnity shall not alter the rights or
obligations of County or the Atascadero County Sanitation
District under their joint powers agreement for construction of
the sewer plant.
S. There shall be no tax base or tax increment transferred
because of the dissolved water district.
6. City does hereby for itself, its representatives ,
officers , agents and employees , fully and forever release County,
their representatives , officers , agents , employees , and each of
them, from any and all claims , demands , actions or causes of
action against them by reason of any occurrences or any damages ,
losses, or injuries whatsoever sustained by City, at any time
prior to and including the date of this agreement, including , but
not limited to, any and all claims or causes of action arising
from the present disputes or any other matter regarding the
incorporation of City including without limitation, the financing
or servicing of said City by County.
7 . The provisions of this agreement shall be deemed to
obligate, extend to and inure to the benefit of the successors,
assigns , transferees, grantees and indemnitees of each of the
parties to this agreement .
8. City and County agree to refrain from seeking any state
legislative action which would vitiate any term or condition of
this agreement .
9. Each of the parties to this agreement acknowledges and
agrees that he has been represented by legal and financial
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counsel throughout all negotiations which preceded the execution
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of this agreement, and that he has executed this agreement with
the consent and upon the advice of said counsel .
10. It is understood that this agreement is executed by the
parties hereto without any admission or confession of any
liability or wrongdoing on the part of any party hereto. Each
party hereto certifies that he has read all of this agreement and
fully understands the same.
IN WITNESS WHEREOF, each of the parties hereto has executed
this Release Agreement on the date set forth opposite their
respective signatures in San Luis Obispo County, California.
City Council, on behalf of City of Atascadero,
Atascadero County Sanitation District and all subsidiary
districts and entities controlled by C' ty Council :
Dated: 11/12/85 By:
L N, 21,1AYOR
Att rney fo , ROBERTrM. JONES
County and all subsidiary districts and entities thereof:
Dated : By:
Chairman
SAN LUIS OBISPO COUNTY COUNSEL
By:
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