HomeMy WebLinkAboutReso - CC - 065-2010RESOLUTION NO. 65-2010
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
BURLINGAME APPROVING AND AUTHORIZING THE
CITY MANAGER TO EXECUTE AN AMENDMENT TO THE
TOLLING AGREEMENT BETWEEN CITY OF BURLINGAME
AND COUNTY OF SAN MATEO REGARDING THE CITY'S
CLAIM FOR RETURN OF EXCESS PROPERTY TAX
ADMINISTRATION FEE FOR THE 2009-2010 FISCAL YEAR
WHEREAS, all of the cities in San Mateo County are joined in a dispute with the County of San
Mateo for the return of excess property administration fees which the County began deducting from each
city's property tax allocations in the 2006-2007 fiscal year; and,
WHEREAS, the City, like all the cities in San Mateo County, has filed a claim against the County
for return of these additional property tax collection fees; and,
WHEREAS, this is an issue between cities and counties statewide and, because the matter is
currently being litigated in Los Angeles, the cities and San Mateo County have agreed to suspend any
litigation until such time as the Court has concluded the Los Angeles case; and
WHEREAS, this 2008 tolling agreement between the County and the cities has extended the time
for the cities to file suit against the County until July 2012 by which time it is expected that the Los Angeles
litigation will be completed and resolution of the issue here in San Mateo County can occur; and,
WHEREAS, this amendment to the tolling agreement adds the city's claim for the 2009-2010
fiscal year Property Tax Administration Fee;
follows:
NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Burlingame as
1) All of the facts recited above and in the staff report are true and correct.
2) The City Council approves the amendment to the tolling agreement in the form attached hereto
and incorporated herein as Exhibit "A".
3) The City Council authorizes the City Manager to execute this amendment to the tolling
agreement in the form attached hereto and incorporated herein as Exhibit "A".
(i�
Cathy Baylock, Mayor
I, Mary Ellen Kearney, Clerk of the City of Burlingame, hereby certify that the foregoing Resolution was
duly and regularly introduced and adopted at a regular meeting of the Burlingame City Council held on the
16'' day of August, 2010, by the following vote to wit:
AYES: Councilmembers BAYLOCK, BROWNRIGG, DEAL, KEIGHRAN, NAGEL
NOES: Councilmembers: NONE
ABSENT: Councilmembers: NONE
Mary ElldnKcarnef, City Clerk
SECOND ADDENDUM TO AGREEMENT BETWEEN
THE COUNTY OF SAN MATEO AND THE CITY OF BURLINGAME
TO TOLL STATUTES OF LIMITATIONS FOR CLAIMS
REGARDING PROPERTY TAX ADMINISTRATION FEES
WHEREAS, the City of Burlingame (the "City") and the County of San Mateo (the
"County") (collectively the "Parties") may become involved in litigation regarding the County's
calculation of the property tax administration fee (the "PTAF") as related to the Triple Flip (Rev.
& Tax Code § 97.68) and the Vehicle License Fee swap (Rev. & Tax Code § 97.70) that the
County charges the City, pursuant to the Revenue and Taxation Code, beginning in the fiscal
year 2004-05;
WHEREAS, the City filed a claim with the County seeking a refund of the amount of
PTAF that the City claims the County overcharged the City in the 2006-07 and 2007-08 fiscal
years (the "2006-08 Claim");
WHEREAS, the Parties entered into a tolling agreement on February 18, 2009, a copy of
which is attached hereto as Exhibit "A" (the "Tolling Agreement");
WHEREAS, the County denied the 2006-08 Claim on March 31, 2009;
WHEREAS, the City filed a claim with the County seeking a refund of the amount of
PTAF that the City claims the County overcharged the City in the 2008-09 fiscal year (the
"2008-09 Claim");
WHEREAS, the County denied the 2008-09 Claim on December 15, 2009;
WHEREAS, the County and the City agreed to an addendum to the Tolling Agreement,
to bring the 2008-09 Claim within its scope, a copy of which is attached hereto as Exhibit "B"
(the "First Addendum");
WHEREAS, the City has now filed a Claim with the County seeking a refund of the
amount of PTAF that the City claims the County overcharged the City in the 2009-10 fiscal year
(the "2009-10 Claim");
WHEREAS, the City and County are aware that other cities and counties in other areas
of the State are involved, or may become involved, in litigation concerning the calculation of the
PTAF;
WHEREAS, the Parties desire to avoid litigation in order to allow for additional time to
evaluate the law as it develops on this state-wide issue;
WHEREAS, the Parties now wish to bring the 2009-10 Claim within the scope of the
Tolling Agreement;
NOW, THEREFORE, THE PARTIES AGREE AS FOLLOWS:
1. The Parties agree to toll the applicable statutes of limitations for either party to
file a claim, complaint, or petition against the other with respect to the calculation of the PTAF
for the 2009-10 fiscal year, including, but not limited to, the applicable statutes of limitations for
the City to file a complaint or petition seeking a refund or reallocation to the City of the PTAF
that the City contends the County overcharged the City for the 2009-10 fiscal year, which the
City contends resulted in an under -allocation of property taxes to the City for the 2009-10 fiscal
year.
2. The City and the County agree not to file any claims and not to initiate or
participate in litigation against each other related to the PTAF for the 2009-10 fiscal year while
this agreement is in effect.
3. This agreement constitutes the entire understanding of the Parties with respect to
the tolling of the City's and the County's claims as set forth in Section 1 above, and correctly
states the rights, duties, and obligations of each Party as of the effective date of this agreement.
Any prior understandings, promises, negotiations, or representations between the parties not
expressly stated in this document are not binding.
4. Subsequent modifications of this agreement, including but not limited to the
extension or amendment of the agreement, shall not be valid or effective unless set forth in
writing and signed by the Parties. The Parties anticipate that they may amend this Agreement to
include claims brought by the City regarding the calculation of PTAF for future fiscal years.
5. The Parties hereby also incorporate sections 2, 3, 5, 8, 9, 10, and 11 of the Tolling
Agreement into this Addendum.
FOR THE COUNTY OF SAN MATEO
Dated:
FOR THE CITY OF BURLINGAME:
Michael P. Murphy
County Counsel of the County of San Mateo
By:
James Nantell
City Manager of the City of Burlingame
Approved as to form for the City of Burlingame:
M
Clark E. Guinan
City Attorney of the City of Burlingame