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HomeMy WebLinkAbout2003-10-28 - RESOLUTIONS - SC CMTY COLLEGE DIST TAX AGMT (2)RESOLUTION NO. 03-132 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA CLARITA, CALIFORNIA, APPROVING THE AGREEMENT BETWEEN THE CITY OF SANTA CLARITA AND THE SANTA CLARITA COMMUNITY COLLEGE DISTRICT WHEREAS, in late 2002, representatives of the Santa Clarita Community College District ("District") approached the City of Santa Clarita ("City") and indicated their desire to partner with the City in the development of a program designed to increase use tax revenue as a means to help fund the College of the Canyon's future University Center; WHEREAS, the development of a potential Use Tax Equivalent Sharing Program represents an opportunity for the City to participate as a partner with the District in the construction of their University Center through the generation of new use tax revenue the City does not currently receive; WHEREAS, during the course of several months, representatives of the City and the District have worked towards the development of a conceptual Use Tax Equivalent Sharing Program; WHEREAS, the City Council finds that contributions to the District created by the Use Tax Equivalent Sharing Program for the construction of its new University Center is in the best interest of the City and will be a benefit to the public welfare; WHEREAS, on September 30, 2003, the Santa Clarita City Council and the Santa Clarita Community College District Board of Trustees held a joint meeting at which time each Board verbally expressed their desire to support the formal approval of a Use Tax Equivalent Sharing Program between their respective agencies. NOW, THEREFORE, the City Council of the City of Santa Clarita does hereby resolve as follows: SECTION 1. That the City of Santa Clarita hereby approves the execution of the Agreement attached hereto as Exhibit A and incorporated herein by this reference. SECTION 2. The City Clerk shall certify to the adoption of this Resolution. PASSED, APPROVED AND ADOPTED this 28`h day of October, 2003. h>71 MAYOR ATTEST: CITY CLERK STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) ss. CITY OF SANTA CLARITA ) I, Sharon L. Dawson, CMC, City Clerk of the City of Santa Clarita, do hereby certify that the foregoing Resolution was duly adopted by the City Council of the City of Santa Clarita at a regular meeting thereof, held on the 28` day of October, 2003, by the following vote: AYES: COUNCILMEMBERS: Ferry, McLean, Weste, Kellar NOES: COUNCILMEMBERS: None ABSENT: COUNCILMEMBERS: Smyth CITY CLERK ATTACHMENT A AGREEMENT BETWEEN THE CITY OF SANTA CLARITA AND THE SANTA CLARITA COMMUNITY COLLEGE DISTRICT THIS AGREEMENT is made and entered into by the CITY OF SANTA CLARITA, hereinafter referred to as "City," and the Santa Clarita Community College District, hereinafter referred to as "District" on this day of 2003. RECITALS WHEREAS, in late 2002, representatives of the Santa Clarita Community College District ("District") approached the City of Santa Clarita ("City") and indicated their desire to partner with the City in the development of a program designed to increase use tax revenue as a means to help fund the College of the Canyon's future University Center; WHEREAS, the development of a potential Use Tax Equivalent Sharing Program represents an opportunity for the City to participate as a partner with the District in the construction of their University Center through the generation of new use tax revenue the City does not currently receive; WHEREAS, during the course of several months, representatives of the City and the District have worked towards the development of a conceptual Use Tax Equivalent Sharing Program; WHEREAS, the City Council finds that contributions to the District created by the Use Tax Equivalent Sharing Program for the construction of its new University Center is in the best interest of the City and will be a benefit to the public welfare; WHEREAS, on September 30, 2003, the Santa Clarita City Council and the Santa Clarita Community College District Board of Trustees held a joint meeting at which time each Board verbally expressed their desire to support the formal approval of a Use Tax Equivalent Sharing Agreement between their respective agencies. NOW, THEREFORE, FOR AND IN CONSIDERATION OF THE MUTUAL PROMISES, COVENANTS, AND CONDITIONS HEREIN CONTAINED, THE PARTIES HERETO AGREE AS FOLLOWS: 1. AGREEMENT. City agrees to contribute to the District an amount equivalent to fifty percent (50%) of all net new Use Tax revenue generated and collected by the City (as defined in Section 3, Subsection "L") as a direct result of the District's efforts to secure the participation of local businesses through the District's Capital Campaign to raise funds for the construction of its new University Center. The City and District further agree that the City's maximum contribution towards the construction of the University Center during the period covered by this Agreement shall not exceed two million dollars ($2,000,000). 2. LENGTH OF AGREEMENT. City and District agree that the length of this Agreement shall be for a period of four (4) years, commencing on 2003. Additionally, both the City and District agree that within twelve (12) months of the execution of this Agreement, the Santa Clarita City Council shall conduct a review of said Agreement for the purpose of evaluating Program effectiveness, and to determine if any modifications to the terms of this Agreement are appropriate. Any modifications to the terms of this Agreement may be accomplished only through a majority vote of the Santa Clarita City Council. 3. TERMS OF AGREEMENT. Pursuant to this Agreement, the City and District mutually agree to develop a Joint City/District Use Tax Equivalent Sharing Program (hereinafter referred to as "Program"). The City and District agree to terms of this Program as outlined below: A. City agrees to contribute to District an amount equivalent to fifty percent (50%) of all net new use tax revenue generated and collected by the City as defined in Section 1 and in accordance with Section 3, Subsection "L" of this Agreement. B. City and District agree that the period of the District's Capital Campaign to solicit the support and participation of local businesses in this Program will extend over the entire period of time covered by this Agreement. C. City and District agree that the City will retain and manage the day-to-day efforts of a Use Tax Consultant (hereinafter referred to as "Consultant"), to oversee the technical components associated with this Program. City and District further agree that Consultant will work directly with all local businesses participating in this Program and will be responsible for reviewing and facilitating all quarterly use tax revenue reporting. D. The net maximum amount of the City's use tax contribution to the District during the period covered by this Agreement, after application of calculations as defined in Section 3, Subsection `B," shall not exceed $2,000,000. City and District agree that the terms of this Agreement in no way obligates the City to specify or guarantee any minimum contribution during the period covered by this Agreement. E. City and District agree that the formula identified below will be utilized to determine the equivalent amount of new use tax revenue that will be contributed by the City and to the District as a result of this Program. 1. On all new use tax revenue generated by this program, the City will retain an amount equal to Santa Clarita's current three percent (3%) allocation normally derived from quarterly revenue generated by the Los Angeles County Use Tax Pool. 2. On all new use tax revenues generated by this Program, City and District agree that the City's Use Tax Consultant will receive compensation in an amount not to exceed fifteen percent (15%) of the new use tax revenue generated by this Program, after the reduction of an amount equal to the City's three percent (3%) allocation normally derived from quarterly revenue generated by the Los Angeles County Use Tax Pool. 3. City and District agree that an amount equivalent to fifty percent (50%) of all net new use tax revenues generated by local businesses participating in this Program (in accordance with Section 3, Subsection "L') will be contributed to District during the period covered by this . _ Agreement. F. City and District agree that the City will remit any amounts to be contributed under Section 3, Subsection `B" to the District within thirty (30) days following the end of the most recent quarter, of the City's receipt of the use tax received from the State Board of Equalization, directly attributable to this Program. G. City and District agree that only new use tax revenues generated by local businesses as a result of their desire to expressly re -direct their use tax obligation in support of the College's efforts to construct its new University Center will be included in future use tax revenues to be used as a measure of the contributions by the City to the District as a result of this Program. H. City and District agree that the City shall retain one hundred percent (100%) of any use tax revenue remitted to the City through the Los Angeles County Use Tax Pool or by the direct self-assessment of any local business prior to the execution of this Agreement. the following: I. Expressed exceptions to Section 3, Subsection "H" of this Agreement include City agrees to contribute to the District amounts equivalent to fifty percent (50%) of all net new use tax revenues generated by Aerospace Dynamics International. Inc. during the period covered by this Agreement. J. City reserves the right to consider the development and coordination of a City Use Tax Program designed to capture use tax revenues generated from City -initiated projects that includes, but is not limited to, Capital Improvement -type projects. City and District agree that the City will not contribute to District any amounts equivalent to all use tax revenues generated from these types of City -initiated projects. K. During the period covered by this agreement, the City agrees that it will contribute to the District an amount equivalent to one hundred percent (100%) of all use tax revenue derived from District -initiated projects that includes, but is not limited to, facilities constructed on property owned by the District, such as the Performing Arts Center and the University Center. L. District will be solely responsible for identifying and recruiting potential local businesses to participate in this joint City/District Use Tax Equivalent Contribution Program. Additionally, District agrees to memorialize the Public/Private Partnership established with each participating local business and provide the City with such information in the form of a Memorandum of Understanding (MOU) prior to the disbursement of quarterly use tax. The City agrees to contribute amounts equivalent to fifty percent (50%) of all use tax generated by any local business participating in this Program as evidenced by an executed MOU between said business and the District. It is furthered agreed that each participating local business shall provide copies of their State Board of Equalization Sales/Use Tax Returns and accrual reports to the City's Consultant. M. City and District agree that, in and for consideration of this Agreement, the City shall receive occasional use of training or conference rooms in the permanent University Center building at no charge for a period not to exceed four years from the date of the University Center's opening. 4. INDEMNIFICATION. District agrees to indemnify and defend City and its elected representatives, officials, employees, attorneys, contractors, consultants, agents and volunteers and their successors in interest (collectively "City Indemnified Parties") against, and hold the City Indemnified Parties harmless from, all claims, demands, judgments, fines, encumbrances, liens, liabilities, losses, damages (including consequential damages, all damages for personal injury including death or disease, or damage or destruction to property of others or damage or destruction to natural resources, whether foreseeable or unforeseeable), costs and expenses (collectively "City Claims") in any way arising from, relating to or in any way connected with: (a) District's activities under this Agreement or its performance under this Agreement or its failure to perform any of its obligations under this Agreement; (b) the inaccuracy of any report or information or data provided to City by District or District's contractors or consultants or anyone acting on behalf of District in connection with this Agreement; or (c) any claim of damage or loss by any person, owner of any property, subcontractor, supplier, or laborer against City Indemnified Parties arising out of any act or omission of District or any District contractor or consultant or anyone acting on behalf of District, except that the provisions of this Section do not apply to any City Claims occurring as a result of the sole negligence of or willful acts or omissions of City or City agents or consultants. 5. ENTIRE AGREEMENT. This Agreement constitutes the entire Agreement between City and District. There are no oral agreements or amendments between parties. This Agreement shall not be amended, except in writing, unless executed by both parties to this Agreement. IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the date and year first written above. Date: Date: M Date: Dianne G. Van Hook, Superintendent- President Date: Lynne Mayer Secretary to the Board of Trustees Approved as to form Kenneth R. Pulskamp, City Manager Sharon L. Dawson, City Clerk Approved as to Form By: College Counsel City Attorney -- STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES CITY OF SANTA CLARITA ) CERTIFICATION OF CITY COUNCIL RESOLUTION I, Sharon L. Dawson, City Clerk of the City of Santa Clarita, do hereby certify that this is a true and correct copy of the original Resolution No. 03-132, adopted by the City Council of the City of Santa Clarita, California on October 28, 2003, which is now on file in my office. Witness my hand and seal of the City of Santa Clarita, California, this _ day of ,20—. Sharon L. Dawson, CMC City Clerk Rv Susan Coffman Deputy City Clerk