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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.