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Home My WebLink AboutAGMT - Orange County (Toll Statute of Limitations for Prop Tax Admin Fee)AMENDMENT TO AGREEMENT TO TOLL STATUTE OF LIMITATIONS FOR CLAIMS REGARDING PROPERTY TAX ADMINISTRATION FEE I his Amendment to the Tolling Agreement ( "Amendment ") is made and entered into by and between the County of Orange (the "County) and the City of Seal Beach (the "City'). RECI'T'ALS A. The County charges cities within the County a property tax administration fee ( "PTAF ") for assessing, collecting, and allocating property tax revenues pursuant to Revenue and Taxation Code section 95.3. B. A dispute has arisen between the County and the City regarding the interpretation of Revenue and Taxation Code sections 95.3 and 97.75 and the County's calculation of the amount of PTAF that the City is charged as related to the Triple Flip (Revenue and Taxation Code section 97.68) and the Vehicle License Fee swap (Revenue and Taxation Code section 97.70) (the "Dispute"). C. The parties are monitoring litigation between other counties and cities in the State regarding the calculation of PTAF, including the City gfAlhambra, et al. v. the County of Los Angeles, et al., California Supreme Court Case No. S 185457, Coat of Appeal Case No. B218347 and Los Angeles County Superior Court Case No. BS 116375 (the "Los Angeles Case "), which involves issues similar to those raised in the Dispute. D. The parties are engaged in discussions to resolve the Dispute. E. The parties entered into an "Agreement To Toll Statute Of Limitations For Claims Regarding Property Tax Administration Fee" (the "Agreement ") because the parties desired additional time to evaluate the law as it developed regarding the issues raised in the Dispute, and wished to preserve their claims and defenses regarding the Dispute as they existed at the time they entered into the Agreement. The parties desire to amend the Agreement to extend it. AGREEMENT NOW, THEREFORE, in consideration of the mutual promises contained in this Amendment, the parties agree as follows: 1. The effective date for this Amendment (the "Effective Date ") shall be the date the City fully executes this Amendment. 2. The Tolling Period defined in Paragraph I of the Agreement shall include the period that extends from the Effective Date of the Agreement until the earlier of the following: The expiration of forty -five (45) days from the date one party ( "the terminating party') delivers to the other ( "the non - terminating party'), via hand delivery. United States mail, or facsimile transmission, notice that the terminating party desires to terminate this Agreement, or ii. July 1. 2014. 3. Except as expressly modified herein, all other provisions, terms and covenants set forth in the Agreement shall remain unchanged and shall be in full force and effect. ORANGE COUNTY, CALIFORNIA DATED: By: COUNTY EXECUTIVE OFFICER APPROVED AS TO FORM: DATED: By: ORANGE COUNTY COUNSEL THE CITY OF SEAL BEACH. CALIFORNIA DATED: 1 Lr L n By: J L R. INGRAM CITY MANAGER APPROVED AS TO FORM: DATED: ^" i zd -2- QUINN M. BARROW CITY ATTORNEY AGREEMENT TO TOLL STATUTE OF LIMITATIONS FOR CLAIMS REGARDING PROPERTY TAX ADMINISTRATION FEE This tolling agreement ( "Agreement ") is made and entered into by and between the County of Orange (the "County) and the City of seal Beach (the "City ") RECITALS A. The County charges cities within the County a property tax administration fee ( "PTAF ") for assessing, collecting, and allocating property tax revenues pursuant to Revenue and Taxation Code section 95.3. B. A dispute has arisen between the County and the City regarding the interpretation of Revenue and Taxation Code sections 95.3 and 97.75 and the County's calculation of the amount of PTAF that the City is charged as related to the Triple Flip (Revenue and Taxation Code section 97.68) and the Vehicle License Fee swap (Revenue and Taxation Code section 97.70) (the "Dispute "). C. The parties are monitoring litigation between other counties and cities in the State regarding the calculation of PTAF, including the City of Alhambra, et al. v. the County of Los Angeles, et al., Case No. BS 116375 (the "Los Angeles Case "), which involves issues similar to those raised in the Dispute. D. The parties are engaged in discussions to resolve the Dispute. E. The parties desire additional time to evaluate the law as it develops regarding the issues raised in the Dispute, and wish to preserve their claims and defenses regarding the Dispute as they exist at the time they enter into this Agreement. AGREEMENT NOW, THEREFORE, in consideration of the mutual promises contained in this Agreement, the parties agree as follows: 1. The parties agree that the statute of limitations for any claim or cause of action relating to the Dispute referenced in Recital B that would otherwise expire between the Effective Date of this Agreement, as defined in Paragraph 8, and the termination of this Agreement is tolled until this Agreement is terminated pursuant to Paragraph 9 (the "Tolling Period "). This Tolling Period applies to all statutes of limitation that have not elapsed as of the Effective Date, including any deadline by which each party may have to submit a claim to the other under the applicable provisions of the Government Claims Act and/or any City or County ordinance. 2. The parties hereby waive any defense that they may have to any claim or cause of action relating to the Dispute based on the expiration of the statute of limitations, laches, estoppel or waiver regarding the passage of time during the Tolling Period. This waiver shall not be construed as a waiver of any statute of limitations defense that has -1- 92127.1 y., become established as of the Effective Date of this Agreement, or which would arise after the date of termination of this Agreement, excluding the period during which this Agreement has operated to toll any applicable statute of limitations. 3. The running of all applicable statute of limitations shall commence again on the termination of this Agreement pursuant to Paragraph 9, unless there is an extension of this tolling Agreement executed in writing by and on behalf of the parties hereto. 4. The parties hereby waive any claim for the recovery of prejudgment interest that might accrue during the Tolling Period with respect to any claims or causes of action the parties might assert against each other relating to the Dispute. 5. The parties agree that neither the execution of this Agreement nor the performance of the provisions of this Agreement shall constitute or be construed as or constitute evidence of an admission on the part of any party of any liability. 6. Except as set forth herein, nothing contained in this Agreement shall constitute a waiver of any claims, demands, causes of action, position, rights, remedies or defenses in law or in equity, by any of the parties. 7. Each individual signing this Agreement on behalf of each parry represents and warrants that he or she is authorized to do so on behalf of the party he or she represents. 8. The effective date for this Agreement (the "Effective Date ") shall be the date the City fully executes this Agreement. 9. The Tolling Period established by this Agreement extends from the Effective Date of this Agreement until the earlier of the following: i. The expiration of forty -five (45) days from the date one party ( "the terminating party ") delivers to the other ( "the non - terminating parry "), via hand delivery, United States mail, or facsimile transmission, notice that the terminating party desires to terminate this Agreement; or ii. July 1, 2012. 10. This Agreement shall not be offered in evidence in any action or proceeding except to enforce its terms. 11. The execution of this Agreement does not constitute an agreement by the parties to be bound by the results or holdings of the Los Angeles Case. 12. Any notices that either party may desire to give to the other party under this Agreement, including specifically any notice under Paragraph 9(i) above, must be in writing and may be given by any commercially acceptable means to the party to whom -2- 92127.1 the notice is directed at the address of the parry as set forth below, or at any other address as that party may later designate by notice. To City: City of Seal Beach 211 - 8th Street Seal Beach, CA 90740 Attention: City Manager To County: Office of County Counsel County of Orange 333 W. Santa Ana Blvd. Santa Ana, California 92702 -1379 With a copy to: County Executive Officer - Hall of Administration 333 W. Santa Ana Blvd. Santa Ana, California 92702 -1379 13. This Agreement may be signed in counterpart originals, but a faxed signature hereon by either party shall be effective for all purposes. /J ORANGE COUNTY, CALIFORNIA DATED: By: ( EXECUTIVE APPROVED AS TO FORM: r DATED: I 0 (Z>'7 By: ✓7 / t ORANGE COUNTY COUNSEL THE CITY OF SEAL-— BEACIUCALIFORNIA DATED: April 8, 2009 By: 6� T'- :, David N. earmany CITY MANAGER APPROVED AS TO FORM: DATED: April 8, 2009 By: Quinn M. Barrow CITY ATTORNEY -3- 92127.1