Riverside Co/Property Tax Admin Fee Settlement 13SETTLEMENT AND RELEASE AGREEMENT
THIS SETTLEMENT AND RELEASE AGREEMENT ("Agreement") is entered into
as of March 14, 2013 (the "Effective Date"), by and among the County of Riverside, a political
subdivision of the State of California (referred to herein as "County"), and City of La Quinta
(referred to herein as "City"). County and City are sometimes referred to individually as "Party"
and collectively as "Parties."
RECITALS
A. On December 26, 2012, City presented a governmental claim ("Claim"),
requesting compensation for Property Tax Administrative Fees (PTAF) withheld by County, a
copy of which is attached hereto as "Exhibit A."
B. In December 2012, the Riverside County Auditor -Controller made allocations
consistent with the California Supreme Court's decision in the City of Alhambra v. County of Los
Angeles case.
C. County disputes the amount that City claims that it is owed by the County with
respect to the PTAF allocations.
D. County and City now desire to fully and finally settle and resolve any and all
rights, claims, counterclaims, disputes, causes of action, demands for just compensation, and
alleged claims which currently exist, or may exist in the future, with respect to the PTAF
allocations.
E. In consideration of the settlement of this matter and a mutual release of all claims,
County and City have agreed upon terms and conditions for settlement as more fully set forth
herein.
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AGREEMENT
NOW, THEREFORE, in consideration of the above Recitals, which are incorporated into
this Agreement, and of the mutual promises set forth herein, and for other good and valuable
consideration, the receipt and adequacy of which are hereby acknowledged, County and City
Contractors hereby agree as follows:
1. Payment. The County shall cause the sutra of $176,114.00 to be paid to City in
three (3) equal annual installments, for PTAF allocations from Fiscal Year 2009-2010, Fiscal
Year 2010-2011, and Fiscal Year 2011-2012, commencing'April 1, 2013
2. No Admission of Liability: The parties understand, acknowledge and agree that
this Agreement represents a compromise of disputed claims, facts and allegations and shall not
be treated by any party thereto, as an admission of liability or fault of any other party hereto for
any purpose whatsoever or as an admission as to claims for any purpose whatsoever or as an
admission as to claims of interest in any manner whatsoever.
3. Each Party to Bear Own Attorneys' Fees and Costs. The parties expressly
understand, acknowledge and agree to bear their own costs and expenses to date, including
attorneys' fees, incurred in prosecuting and/or defending this matter, in resolving their disputes
herein and in preparing and negotiating this Agreement,
4. Parties Jointly Drafted the Agreement. The parties understand, acknowledge and
agree that each of the parties hereto has contributed to the drafting of this Agreement, and no
provision hereof shall be construed against any party causing this Agreement to be drafted.
5. Mutual Release. The Parties hereby release, and fully and finally and forever
discharge each other, and each of their respective predecessors, successors, heirs, executors,
administrators, assigns, agents, directors, officers, partners, employees, contractors,
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representatives, lawyers, and all persons acting by, through, under, or in concert with them or
any of them of and from any and all manlier of actions or causes of action,.suits, debts, liens,
liabilities, claims, demands, and damages of any nature whatsoever, known or unknown, fixed or
contingent, existing or as the law may change, including, without limitation, to claims which any
Party now has against the other Partyi as alleged in or arising out of, or which could have been
raised in, based upon, or related to the Demand for Arbitration, whether provided by law at the
time of the execution of this Agree ent or which may in the future be provided by law and
retroactively applied to this matter.
6. Waiver of Civil Code Section 1542. The Parties hereby acknowledge that they
have been advised by their attorney Is concerning, and are familiar with, the provisions of
California Civil Code section 1542, which provides as follows:
"A general release does not extend to claims which the creditor
does not know or suspect to exist in his or her favor at the time
of executing the release, which if known by him or her must
have materially affected his or her settlement with the debtor."
It is the intention of the Partiels that the releases entered into as part of this Agreement
shall be effective as a bar to all actions, causes of action, obligations, costs, expenses, attorney's
fees, damages, losses, claims, liabilitieIs, and demands of any character, nature and kind, known
or unknown, suspected or unsuspected, to be so barred; in furtherance of which intention the
Parties expressly waive any and all right and, benefit conferred upon them by the provisions of
Section 1542 of the California Civil Code, except this waiver shall not act to waive any
representations, warranties, indemnitiels, actions, causes of action, obligations, costs, expenses,
attorney's fees, damages, losses, claim 'I , liabilities, and demands of any character as a result of a
breach of this Agreement. The Parties hereby acknowledge that the foregoing waiver of the
provisions of Section 1542 of the California Civil Code was bargained for separately. The
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Parties expressly agree that the releasl'e provisions herein contained shall be given full force and
effect in accordance with each and all of their express terms and provisions, including but not
limited to those terms and provisions (relating to unknown or unsuspected claims, demands, and
causes of action herein above specified. The Parties assume the risk of the foregoing and of the
subsequent discovery or understanding of any matter, fact, or law which if now known or
understood would in any respect have affected this Agreement.
Each Party acknowledges that it may have sustained damage, loss, costs or expenses
which are presently unknown and unsuspected, and such damages, loss, costs or expenses which
may have been sustained may give rise to additional damages, loss, costs or expenses in the
future. Each Party also acknowledges that changes in law may occur in the future which may
apply retroactively and may allow such Party to be entitled to further claims for damages, loss,
costs or expenses which are presently unknown and unsuspected. Nevertheless, each Party
hereby acknowledge that this Agreement has been negotiated and agreed upon in light of that
situation, and hereby expressly waive any and all rights which it may have under California Civil
Code Section 1542, or under any statute or common law or equitable principle of similar effect.
7. Attorneys' Fees. In any action to enforce the terms of this Agreement, the
Prevailing Party shall be entitled tol recover from the nonprevailing Party all reasonable
attorneys' fees, expert fees, and court costs.
8. Entire Agreement. This Agreement and the documents referenced herein
contain the entire agreement between the Parties. This Agreement shall not be modified in any
manner except by an instrument in writing executed by the Parties.
9. Severability. If any term or provision of this Agreement shall, to any extent, be
held invalid or unenforceable, the remainder of this Agreement shall not be affected.
M
10. Waivers. A waiver of a breach or covenant or other provision in this Agreement
shall not be deemed a waiver of anyotherbreach or covenant or provision in this Agreement;
and no waiver shall be valid unless in writing and executed by the waiving party. An extension
of time for performance of any obligation or act shall not be deemed an extension of the time for
performance of any other obligation o act.
11. Construction. The Section headings and captions of this Agreement are, and the
arrangement of this instrument is, for the sole convenience of the Parties. The Section headings,
captions, and arrangement of this instrument do not in any way affect, limit, amplify, or modify
the terms and provisions of this Agreement. The singular form shall include plural, and vice
versa. This Agreement shall not be construed; as if it had been prepared by one of the Parties, but
rather as if all Parties have prepared it. Unless otherwise indicated, all references to Sections are
to this Agreement. All exhibits referred to in this Agreement are attached to it and incorporated
in it by this reference.
12. Merger. All of the terms, provisions, representations, warranties, covenants, and
indemnity obligations of the Parties under this Agreement shall survive each Close of Escrow
and shall not be merged in any Deed or other documents.
13. Counterparts. This Agreement may be executed in one or more counterparts.
Each counterpart shall be deemed an original and all, taken together, shall constitute one and the
same instrument.
14. No Obligations to Third Parties. This Agreement is not intended to create any
third -party beneficiaries, and the execution and delivery of this Agreement shall not be deemed
to confer any rights upon, nor obligate any of the Parties, to any person or entity other than the
Parties. Additionally, no third party may enforce the terns of this Agreement.
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15. Successors. This Agrleemed shall inure to the benefit of and shall be binding
upon the Parties and their respective heirs, successors, and assigns.
16. Governine Law and Venue. This Agreement and any dispute arising hereunder
shall be governed by California law. Each Party consents to the exclusive jurisdiction of the
state and federal courts sitting in the County of Riverside, State of California, in any action on a
claim arising out of, under, or in!, connection with this Agreement or the transactions
contemplated by this Agreement. EACH PARTY HEREBY ACKNOWLEDGES THAT THE
FOREGOING VENUE PROVISIONS, HAVE BEEN CHOSEN AS THE APPROPRIATE AND
CONVENIENT FORUM FOR ANY SUCH ACTION AND WAIVES ANY RIGHT TO
OBJECT TO JURISDICTION ON THE BASIS OF LACK OF PERSONAL JURISDICTION
OR FORUM NON CONVENIENS. I
[REMAINDER OF PAGE INTENTIONALLY BLANK; SIGNATURES FOLLOW]
in
IN WITNESS WHEREOF, the County and City have executed this Agreement to be
effective on and as of the Effective Date set forth in the preamble of this Agreement.
Date:
Date: 14
APPROVED AS TO FORM:
Date: 3 1 ')0115
APPROVED AS TO FORM:
Date:
COUNTY OF RIVERSIDE
By:
County of Riverside
CITY OF LA
QUINTA
�j
Frank J. S ace ity Manager
City of La aiifornia
OFFICE OF COUNTY COUNSEL
1
By:
L.ALEXANDRA G
Deputy County Counsel
Attorneys for County of Riverside
I
LAF:ay I
0:1Property\PWALLS\PTAFWOMTSIPTAF_SedAgnt-L Quintadoo
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EXHIBIT A
CLAIM
[TO BE ATTACHED]
Exhibit A
COUNTY OF RIVERSIDE I CLAIM RE►e nAMA02=0 Tn asonQn►. ww ..,...........
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At INSTRUCTIONS:
u � I.. Road claim thoroughly. CL
1. Fill out claim as Indicated; attach additional Information If necessary,
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3. This once needs the onD/net completed claim form and clear readable copies
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DEC 2 s 201z
of attachments (If any) If originals are not available.
Mar 9�'sq° 4, This claim form must be signed
OpmTHOFXIV&6SDID6 CAM sared
PE41VFR ORUS MAIL TO: CLERK OF THE BOARD OF SUPERVISORS
ATTN: CLAIMS DIVISION SIR
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P,O. 90X 1147, 4o 60'LEMON ST, 0' FL,
-TIME
RIVERSIDE B 60 - IT i. 086.1080
STAMP HERE
1. FULL NAME OF CIAIMAN
L I N 8
City of La Ouinta
Bee allaolirnant.
I INOAVIINL. I.I xl
P.O, Box 1504
CITY ATE
La Qulnta CA 92247
ME TELEPHONE
BUS INE
Ea E (A 1 A I l IN
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760 777.7030
INJURY OR DAMAGE (IF APPUCABLEI,
J. N UP DAMAGE OK INJURY OC BLLAUh BEEXACT) I
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See attachment. -
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A. DI AGE q N UR R
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PERSONS KNOWN TO HAVE INFORMATION:
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AND IIDSPITAPS NAME, ADDRESS AM) PHONE NUMBER;
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L763,652.00 s
THIS CLAIM MUST BE SIGNED TO BE VALID, NOTE: PRESENUMIN OFA FALSE CLAIM IS A FELONYPENAL CODE SECT 1@'.
WARNING; �•
)J CLAIMS FOR DEATH, INJURY TO PERSON OR ITO PERSONAL PROPERTY MUST BE FILED NOT LATER THAN SIX (0) MONTHS AMER THE
OCCURRENCE. (GOVERNMENT CODE SECTION 9111)
> ALL OTHER CLAIMS FOR DAMAGES MUST BE FILED NOT LATER THAN ONE (1) YEAR AFTER THE OCCURRENCE. (GOVERNMENT CODE SECTION
111.2) 1
> SUBJECT TO CERTAIN EXCEPTION$. YOU HAVE ONLY SIX (6) MONTHS FROM THE DATE OF THE WRITTEN NOTICE OF REJECTION OF YOUR CLAM
TO FILE A COURT ACTION, (GOVERNMENT CODE SECTION 966.6)
> IF WRITTEN NOTICE OF REJECTION OF YC UR CLAIM IB NOT GIVEN, YOU HAVE TWO YEARS FROM ACCRUAL OF THE CAUSE OF ACTION TO FILE
A COURT ACTION. (GOVERNMENT CODE SECTION NEST
J.
COB 0%2703 BGS I REVISED: 7110010
101
P.O. Box 1504
LA QUINTA, CALIFORNIA 92247-1504
78-495 CALLS TAMPICO
LA QUIN'1"A, CALIF GANIA 92259
December 19, 2012
Kecia Harper -Them, Clerk of the' Board
County of Riverside
4080 Lemon Street, 1st Floor
Riverside, CA 92501
Dear Ms, Harper -Them:
(760) 7 7 7 - 7 0 0 0
FAX (760) 777-7101
At the December 18, 2012 La Quints City Council meeting, the City Council
directed staff to file a claim for 'damages with the County of Riverside for recovery
of fees which have been improperly charged to the City of La Quints by the County
of Riverside for the administration of the property tax system. The claim is hereto
attached.
Upon receipt of the attached claim please return to us in the attached stamped and
self-addressed envelope a copy of the claim stamped and dated as received by you.
We also request that you email a pdf of the same claim stamped and dated as
received to our City Attorney, Ms. M. Katherine Jenson at kjenson@rutan.com,
Thank you for your attention to ithis matter.
Sincerely,
r�
c'3
Frank J, peva k M1�
City Man
Attachments n.
Ln
Attachment to City of La Quinta Claim For Damages
(Riverside County Code Chapter 4,04)
1. Claimant: City of La Quinta
2. Mailing Address: City Hall
P. O. Box 1504
La Quinta, CA 92247
Attn: Frank I. Spevacek, City Manager
Telephone: (760) 777.7030
3. When did damage or injury occur? Beginning on or about Fiscal Year
2006/2007 and continuing,
4. Where did damage or injury occur? Riverside County.
S. Describe in detail how dam age or injury occurred.
This Claim is being filed llwith the County for the recovery of fees which have been
improperly charged to the City of La Quinta by the County for the administration of the property
tax system. It is filed only for purposes of stating the amount and nature of the Claim and by
doing so, the. City does not waive, its exception from the Government Claims Act provided by
eovernment Code section 905(i). I
During fiscal years 2006/2007 to'2012/2013, the County of Riverside has charged the
City property tax administration fees in an amount in excess of that permitted by Revenue and
Taxation Code section 97,75. Specifically, the Office of the Riverside County Auditor -
Controller has included in its calculation of the City's property tax administration charges the ad
valorem property taxes the City received in lieu of the local Bradley Burns Sales and Use Tax
and the Vehicle License Fee pursuant to Rev. & Tax. Code sections 97.68 (the "VLF Swap") and
97,70 (aka, the "Triple Flip"), Section 97.75 provides that no fee shall be charged for this
service for fiscal year 2005/2006, and that thereafter no amount should be charged for
administrative services for the Triple Flip and VLF Swap in excess of the actual cost of
providing the services. By including the Triple Flip and VLF Swap funds in its calculation of the
City's administrative cost share instead of calculating the actual incremental service costs to
administer the Triple Flip and VLF Swap, the County has overcharged the City and violated
applicable state law. The City is informed and believes that the Office of the Riverside County
Auditor -Controller, currently held by Paul Angulo, is responsible for the overcharges,
The City estimates that the overcharges to the City to be approximately $73,464 for fiscal
year 2006/2007, $97,369 for fiscal year 2007/2008, $136,728 for fiscal year 2008/2009,
$130,501 for fiscal year 2009/2010, $115,704 for fiscal year 2010/2011, $134,239 for fiscal year
2011/2012, and $75,647 for fiscal year 2012/2013, The total overcharges to date, commencing
with fiscal year 2006/2007 are $763,652, The City believes that until the Riverside County
Auditor -Controller complies with the mandate of section 97.75, the City will continue to suffer
future, annual damages in similar amounts,
2575/015610-0006 III
47496a5,1 .12/17112
'['his claim is being filed without prejudice as to whether or not a claim is required, Any
action to recover such Rinds, penalties, and interest would be an unlimited civil case in an
amount to be determined,
6. Police or paramedics? Not Applicable,
7. Physician/Hospital? Not Applicable.
8. Why do you claim the County is responsible? See Item 5
9, Names of County Employees (and their
Departments) involved in injury or damage, See Item 5
10. Witnesses to damage or injury: See Item 5
11. List Damages Incurred: Based on't he information presently available to the
City, it is believed that the overcharges are
approximately $73,464 for fiscal year 2006/2007, $97,369 for
fiscal year 2007/2008, $136,728 for fiscal year 2008/2009,
$130,501 for fiscal year 2009/2010, $115,704 for fiscal year
2010/2011, $134,239 for fiscal year 2011/2012, and $75,647
for fiscal year 2012/2013. The total overcharges to date are
$763,652,
2575/01561 MX6
4749693.1 02/17/12 L