Resolution No. 2014-022RESOLUTION NO. 2014-22
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
VERNON APPROVING AND AUTHORIZING THE EXECUTION OF
AN AGREEMENT FOR BILLING OF DIRECT ASSESSMENTS BY
AND BETWEEN THE CITY OF VERNON AND THE LOS ANGELES
COUNTY AUDITOR -CONTROLLER (SPECIAL PARCEL TAX
LEVIED PURSUANT TO SECTION 5.45 OF THE MUNICIPAL
CODE)
WHEREAS, pursuant to Section 5.45 of the Municipal Code, the
City levies an annual special parcel tax (the "Tax") on warehouses,
truck terminals, freight terminals and other distribution facilities to
fund (i) construction, improvement and maintenance of streets, bridges
and other public rights -of -way, including acquisition of land and
(ii) police and fire protection services; and
WHEREAS, the.Tax is collected on the Los Angeles County
property tax roll as a "direct assessment"; and
WHEREAS, in order for the Los Angeles County Auditor -
Controller to provide collection services for the Tax, the City must
enter into a billing agreement with the County; and
WHEREAS, the City Council desires to enter into such a
billing agreement.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF VERNON AS FOLLOWS:
SECTION 1: The City Council of the City of Vernon hereby
finds and determines that the above recitals are true and correct.
SECTION 2: The City Council of the City of Vernon finds
that this action is not a "project" pursuant to section 15378(b)(4) of
the Guidelines to the California Environmental Quality Act (CEQA),
because it relates to a governmental funding mechanism that does not
involve any commitment to any specific project, and even if adoption of
the resolution were a project, it would be exempt from CEQA in
accordance with Section 15061(b)(3), the general rule that CEQA only
applies to projects that may have an effect on the environment.
SECTION 3: The City Council of the City of Vernon hereby
authorizes the City Administrator to approve the Agreement for Billing
of Direct Assessments with the Los Angeles County Auditor -Controller,
in substantially the same form as the copy which is attached hereto as
Exhibit A.
SECTION 4: The City Council of the City of Vernon hereby
instructs the City Administrator, or his designee, to take whatever
actions are deemed necessary or desirable for the purpose of
implementing and carrying out the purposes of this Resolution and the
transactions herein approved or authorized, including but not limited
to, any non -substantive changes to the Agreement attached herein.
SECTION 5: The City Council of the City of Vernon hereby
directs the Deputy City Clerk, or the Deputy City Clerk's designee, to
submit all required information to, the County Auditor -Controller.
- 2 -
SECTION 6: The City Clerk, or Deputy City Clerk,, of the
City of Vernon shall certify to the passage, approval and adoption of
this resolution, and the City Clerk, or Deputy City Clerk, of the City
of Vernon shall cause this resolution and the City Clerk's, or Deputy
City Clerk's, certification to be entered in the File of Resolutions of
the Council of this City.
APPROVED AND ADOPTED this 3Id day of June, 2014.
c
Name: W. Michael McCormick
Title: Mayor ' nay9r P—' T9E�,y
ATTEST:
Ana arcia
'C+ty—t3'e�/ Deputy City Clerk -
APPROVED AS TO FORM:
Scott E. Porter, Deputy City Attorney
- 3 -
STATE OF CALIFORNIA )
) ss
COUNTY OF LOS ANGELES )
I Aria BarCiat� Deputy City Clerk of the City
of Vernon, do hereby certify that the foregoing Resolution, being
Resolution No. 2014-22, was duly passed, approved and adopted by the
City Council of the City of Vernon at a regular meeting of the City
Council duly held on Tuesday, June 3, 2014, and thereafter was duly
signed by the Mayor or Mayor Pro-Tem.of the City of Vernon.
Executed this 5 day of June, 2014, at Vernon, California.
(SEAL)
- 4 -
na Ba a
Deputy City Clerk
EXHIBIT A
4305 Santa Fe Avenue, Vernon, California 90058
Telephone (32$) 5834811
DA Account #: 276.40
AGREEMENT FOR BILLING OF DIRECT ASSESSMENTS
(Warehouse Special Parcel Tax)
This agreement is made and entered into between the Los Angeles County Auditor -
Controller and the City of Vernon to provide the service of placement of direct
assessments on the Secured Tax Roll and distribution of collections to the City of
Vernon.
PROPERTY TAX SERVICES
Los Angeles County will place direct assessments on the Secured Tax Roll and
distribute collections to the City of Vernon at the same time and in the same
manner as Los Angeles County property taxes are collected and distributed. The
City of Vernon will adhere to the policies and procedures established by the Los
Angeles County Auditor -Controller as outlined in the Direct Assessment
Submission Procedure Manual.
Fee for Billing Services
For billing of direct assessments, the Los Angeles County Auditor -Controller shall
collect the following charge:
DA Original Submission - $0.25 per assessment per parcel
For correction of direct assessments requested by the City of Vernon after
extension of the tax roll, the Los Angeles County Auditor -Controller will collect
$13.00 per correction.
The Los Angeles County Auditor -Controller will charge an additional fee for
extended services provided to the City of Vernon that are outlined in the Auditor -
Controller Direct Assessment Submission Procedure Manual.
Lxclusivefy Indtut&[
Page 2
II. COLLECTION OF AUDITOR -CONTROLLER FEES
Direct Assessment billing charges are collected once a year, on the December
20th advance distribution. Any additional charges are deducted on the next
available distribution of monies.
III. ACCOUNTING SERVICES
The Los Angeles County Auditor -Controller has available a report of direct
assessments levied for the tax year by parcel and will be provided to the City of
Vernon. Accounting Services beyond this will be considered extended services
and will be subject to additional charges and fees.
IV. MODIFICATION OF COLLECTION FEES AND CHARGES
The Los Angeles County Auditor -Controller reserves the right to increase or
decrease any charges herein provided, in proportion to any changes in costs
incurred by the Auditor -Controller in providing the services described herein,
provided that written notice of any increase or decrease in charges is given to the
City of Vernon.
V. AUTHORITY FOR LEVY AND COMPLIANCE WITH LAW
The authority for such levy, (i.e. resolution, ordinance or election), shall
accompany requests for the levy of direct assessments. The City of Vernon
warrants that the taxes, fees, or assessments imposed by the City of Vernon and
collected pursuant to this Agreement comply with all requirements of state law,
including but not limited to Articles XIIIC and XIIID of the California Constitution
(Proposition 218).
The City of Vernon hereby releases and forever discharges Los Angeles 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 the City of Vernon's responsibility under this agreement or
other action taken by the City of Vernon in establishing a special tax, fee, or
assessment and implementing collection of special taxes, fees, or assessments
as contemplated in this agreement.
The City of Vernon agrees to and shall defend, indemnify and hold harmless Los
Angeles 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 the City of
Vernon's responsibility under this agreement, or other action taken by the City of
Vernon in establishing a special tax, fee, or assessment and implementing
collection of special taxes, fees, or assessments as contemplated in this
agreement.
City of Vernon, 4305 Santa Fe Avenue, Vernon, California 90058 — Telephone (323) 583-8811
Page 3
VI. AUTHORITY FOR LEVY AND COMPLIANCE WITH LAW (cont.)
If any judgment is entered against any indemnified party as a result of action
taken to implement this Agreement, the City of Vernon agrees that Los Angeles
County may offset the amount of any judgment paid by Los Angeles County or by
any indemnified party from any monies collected by Los Angeles County on the
City of Vernon's behalf, including property taxes, special taxes, fees, or
assessments. Los Angeles County may, but is not required to, notify the City of
Vernon of its intent to implement any offset authorized by this paragraph.
VII. TERMS OF AGREEMENT
All existing agreements between Los Angeles County Auditor -Controller and the
City of Vernon pertaining to the collection of direct assessments 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 a
thirty -day written notice to the other party of cancellation.
Authorized Signature:
Date:
DIRECTOR OF FINANCE/MANAGER
Authorized Name:
(PRINT)
For Auditor -Controller Use Only
Authorized Signature: Date:
SECTION MANAGER
Approved Name:
(PRINT)
City of Vernon, 4305 Santa Fe Avenue, Vernon, California 90058 — Telephone (323) 583-8811
TRANSMITTAL COMMUNICATION
OFFICE OF THE CITY CLERK
4305 Santa Fe Avenue, Vernon, California 90058
Telephone (323) 583-8811
June 26, 2014
Aquilla Ivery-Simmons
County of Los Angeles
Auditor -Controller, Tax Division
500 W. Temple Street, Room 153
Los Angeles, CA 90012
Re: Agreement for Billing of Direct Assessments — Special Parcel Tax Levied Pursuant to
Section 5.45 of the Municipal Code
Dear Ms. Ivery-Simmons:
Transmitted herewith are two original partially executed agreements, as referenced above, for
execution by the proper party.
Please return one fully executed original agreement to the attention of the undersigned.
If you have any questions regarding this matter, please call Alex Kung, at (323) 583-8811 ext.
355.
Very yours,
4—&r
Deborah R. Juarez
Records Manageme
Enclosures
c: Ana Barcia
William Fox
Alex Kung
Mark Whitworth
Resolution No. 2014-22
Agreement File No. 14-036
FxcCusiveCy Industrid
PARTIALLY EXECUTED
AGREEMENT
4305 Santa Fe Avenue, Vernon, California 90058
Telephone (323) 583-8811
DA Account #: 276.40
AGREEMENT FOR BILLING OF DIRECT ASSESSMENTS
(Warehouse Special Parcel Tax)
This agreement is made and entered into between the Los Angeles County Auditor -
Controller and the City of Vernon to provide the service of placement of direct
assessments on the Secured Tax Roll and distribution of collections to the City of
Vernon.
PROPERTY TAX SERVICES
Los Angeles County will place direct assessments on the Secured Tax Roll and
distribute collections to the City of Vernon at the same time and in the same
manner as Los Angeles County property taxes are collected and distributed. The
City of Vernon will adhere to the policies and procedures established by the Los
Angeles County Auditor -Controller as outlined in the Direct Assessment
Submission Procedure Manual.
Fee for Billing Services
For billing of direct assessments, the Los Angeles County Auditor -Controller shall
collect the following charge:
DA Original Submission - $0.25 per assessment per parcel
For correction of direct assessments requested by the City of Vernon after
extension of the tax roll, the Los Angeles County Auditor -Controller will collect
$13.00 per correction.
The Los Angeles County Auditor -Controller will charge an additional fee for
extended services provided to the City of Vernon that are outlined in the Auditor -
Controller Direct Assessment Submission Procedure Manual.
Ex,cfusivefy Industtiaf
Page 2
II. COLLECTION OF AUDITOR -CONTROLLER FEES
Direct Assessment billing charges are collected once a year, on the December
20th advance distribution. Any additional charges are deducted on the next
available distribution of monies.
III. ACCOUNTING SERVICES
The Los Angeles County Auditor -Controller has available a report of direct
assessments levied for the tax year by parcel and will be provided to the City of
Vernon. Accounting Services beyond this will be considered extended services
and will be subject to additional charges and fees.
IV. MODIFICATION OF COLLECTION FEES AND CHARGES
The Los Angeles County Auditor -Controller reserves the right to increase or
decrease any charges herein provided, in proportion to any changes in costs
incurred by the Auditor -Controller in providing the services described herein,
provided that written notice of any increase or decrease in charges is given to the
City of Vernon.
V. AUTHORITY FOR LEVY AND COMPLIANCE WITH LAW
The authority for such levy, (i.e. resolution, ordinance or election), shall
accompany requests for the levy of direct assessments. The City of Vernon
warrants that the taxes, fees, or assessments imposed by the City of Vernon and
collected pursuant to this Agreement comply with all requirements of state law,
including but not limited to Articles XIIIC and XIIID of the California Constitution
(Proposition 218).
The City of Vernon hereby releases and forever discharges Los Angeles 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 the City of Vernon's responsibility under this agreement or
other action taken by the City of Vernon in establishing a special tax, fee, or
assessment and implementing collection of special taxes, fees, or assessments
as contemplated in this agreement.
The City of Vernon agrees to and shall defend, indemnify and hold harmless Los
Angeles 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 the City of
Vernon's responsibility under this agreement, or other action taken by the City of
Vernon in establishing a special tax, fee, or assessment and implementing
collection of special taxes, fees, or assessments as contemplated in this
agreement.
City of Vernon, 4305 Santa Fe Avenue, Vernon, California 90058 — Telephone (323) 583-8811
Page 3
VI. AUTHORITY FOR LEVY AND COMPLIANCE WITH LAW (cont.)
If any judgment is entered against any indemnified party as a result of action
taken to implement this Agreement, the City of Vernon agrees that Los Angeles
County may offset the amount of any judgment paid by Los Angeles County or by
any indemnified party from any monies collected by Los Angeles County on the
City of Vernon's behalf, including property taxes, special taxes, fees, or
assessments. Los Angeles County may, but is not required to, notify the City of
Vernon of its intent to implement any offset authorized by this paragraph.
VII. TERMS OF AGREEMENT
All existing agreements between Los Angeles County Auditor -Controller and the
City of Vernon pertaining to the collection of direct assessments 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 a
thirty -day written notice to the other party of cancellation.
Authorized Signature: Date: I�
DIRECTOR OF FINANCE ANAGER
Authorized Name: 1O"
(PRINT)
For Auditor -Controller Use Only
Authorized Signature: Date:
SECTION MANAGER
Approved Name:
(PRINT)
City of Vernon, 4305 Santa Fe Avenue, Vernon, California 90058 — Telephone (323) 583-8811
FULLY EXECUTED AGREEMENT
5 Senb Fa.AvmMe, Vemon, Callionoe.90058
T'**10 (W 004813
DA Account #: 216.40
AGREEMENT FOR BILLING OF DIRECT ASSESSMENTS
(Warehouse Special Parcel Tax)
This agreement Is made and entered Into between the Los Angeles County Auditor -
Controller and the City of Vernon to provide the service of placement of direct
assessments on the Secured Tax Roll and distribution of collections to the City of
Vernon.
PROPERTY TAX SERVICES
Los Angeles County will place direct assessmentson the Secured Tax Roll and
distribute collections to the City of Vernon at the same time and in the same
manner as Los Angeles County property taxes are collected and distributed. The
Co of Vernon will adhere to the policies and procedures established by the Los
Angeles County Auditor -Controller as outlined In the Direct Assessment
Submission Procedure Manual
Fee for Billing Services
For billing of direct assessments, the Los Angeles County Auditor -Controller shall
collect the following charge:
DA Original Submission - $0.26 per assessment per parcel
For correction of direct assessments requested by the City of Vernon after
extension of the tax roll, the Los Angeles County Auditor -Controller will collect
$13.00 per correction.
The Los Angeles County Auditor -Controller will charge an additional fee for
extended services provided to the City of Vemon that are outlined in the Auditor -
Controller Direct Assessment Submission Procedure Manual.
&siwo indusu"
Page 2
II, COLLECTION OF AUDITOR -CONTROLLER FEES
Direct Assessment billing charges are collected once a year, on the December
20th advance distribution. Any additional charges are deducted on the next
available distribution of monies.
III: ACCOUNTING SERVICES
The Los Angeles County Auditor -Controller has available a report of direct
assessments levied for the tax year by parcel and will be provided to the City of
Vernon. Accounting Services beyond this will be considered extended services
and will be subject to additional charges and fees.
IV. MODIFICATION OF COLLECTION FEES AND CHARGES
The Los Angeles County Auditor -Controller reserves the right to increase or
decrease any charges herein provided, in proportion to any changes In costs
Incurred by the Auditor -Controller in providing the services described herein,
provided that written notice of any increase or decrease In charges is given to the
City of Vernon.
V. AUTHORITY FOR LEVY AND COMPLIANCE WITH LAW
The authority for such levy, (i.e. resolution, ordinance or election), shall
accompany requests for the levy of direct assessments. The City of Vernon
warrants that the taxes, fees, or assessments imposed by the City of Vernon and
collected pursuant to this Agreement comply with all requirements of state law,
including but not limited to Articles XIIiC and XIIID of the California Constitution
(Proposition 218).
The City of Vernon hereby releases and forever discharges Los Angeles 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 the City of Vernon's responsibility under this agreement or
other action taken by the City of Vernon In establishing a special tax, fee, or
assessment and implementing collection of special taxes, fees, or assessments
as contemplated in this agreement.
The City of Vernon agrees to and shall defend, Indemnify and hold harmless Los
Angeles 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 the City of
Vernon's responsibility under this agreement, or other action taken by the City of
Vernon in establishing a special tax, fee, or assessment and implementing
collection of special taxes, fees, or assessments as contemplated in this
agreement.
City of Vernon, 4305 Santa Fe Avenue, Vernon, California 90058 — Telephone (323) 583-8811
Page 3
VI. AUTHORITY FOR LEVY AND COMPLIANCE WITH LAW (cont.)
If any judgment is entered against any Indemnified party as a result of action
taken to implement this Agreement, the City of Vernon agrees that Los Angeles
County may offset the amount of any judgment paid by Los Angeles County or by
any indemnified party from any monies collected by Los Angeles County on the
City of Vernon's behalf, including property taxes, special taxes, fees, or
assessments. Los Angeles County may, but is not required to, notify the City of
Vernon of its intent to implement any offset authorized by this paragraph.
VII. TERMS OF AGREEMENT
All existing agreements between Los Angeles County Auditor -Controller and the
City of Vernon pertaining to the collection of direct assessments 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 a
thirty -day written notice to the other party of cancellation.
Authorized Signature: Date: S
DIRECTOR OF FINj CEMANAGER
Authorized Name:
W1L14K f, f"�dr
(PRINT)
Authorized
Approved
For Audlor-Controller Use Only
Signa re: Date:?
N MANASirE
Name
(VRINT)
Clay of Vernon, 4305 Santa Fe Avenue, Vernon, California 90058 - Telephone (323) 583-8811
STAFF REPORT
CITY CLERK'S OFFICE STAFF REPORT
CITY CLERK'S OFFICE
DATE: June 3,2014 RECEIVED
TO: Honorable Mayor and City Council MAY 2 8 2014
FROM: Ana Barcia, Deputy City Clerk �2 CITY ADMINISTRATI N
RE: Approval of the One Year Billing Agreement with Los Angeles County
Auditor -Controller to collect and distribute the 2014-2015 Warehouse Special
Parcel Tax
Recommendation
It is recommended that the City Council:
Find that approval of the proposed agreement is not a "project" under section 15378(b)(4)
of the Guidelines of the California Environmental Quality Act ("CEQA") because it
relates to a governmental funding mechanism that does not involve any commitment to
any specific project; and even if it were a project, it would be exempt from CEQA in
accordance with Section 15061(b)(3), the general rule that CEQA only applies to projects
that may have an effect on the environment; and
2. Approve the Resolution to, among other things, authorize the City Administrator to enter
into a direct assessments billing agreement with the Los Angeles County Auditor -
Controller, in substantially the form submitted herewith, for the collection and
distribution of the Warehouse Special Parcel Tax for fiscal year 2014-2015. Competitive
bidding or competitive selection is not required because the services are provided by a
governmental entity, and because that entity is the sole source of the services provided.
Background
In 1998 and 1999, the voters approved Ordinance Nos. 1057 and 1076 to authorize the levy and
collection of an annual special parcel tax on warehouses, truck terminals, freight terminals and
other distribution facilities. This tax funds (i) construction, improvement and maintenance of
streets, bridges and other public rights -of -way, including acquisition of land and (ii) police and
fire protection services. The parcel tax is codified at Section 5.45 of the Vernon Municipal
Code.
Pursuant to Section 5.450) of the Vernon Municipal Code, the tax is collected on the Los
Angeles County property tax bill. The Agreement is required by the County for the City to use
the County's collection services.
Fiscal Imuact
The Los Angeles County Auditor -Controller charges $.25 per assessment per parcel for a total of
approximately $120.00 plus a $50.00 processing fee for fiscal year 2014-2015. Corrections of
direct assessments will be $13.00 per correction.
Direct Assessment billinj charges are deducted from revenues forwarded by the County to the
City on the December 20` advance distribution.