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Home My WebLink AboutA6343 - COUNTY OF RIVERSIDE - SETTLEMENT AND RELEASE AGR RE PROPERTY TAX ADMIN. FEES SETTLEMENT AND RELEASE AGREEMENT THIS SETTLEMENT AND RELEASE AGREEMENT ("Agreement")is entered into as of March 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 Palm Springs (referred to herein as "City"). County and City are sometimes referred to individually as "Party" and collectively as"Parties." RECITALS A: On February 19,2013, 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. -1- 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 hereby agree as follows: 1. Payment. The County shall cause the sum of $205,432.00 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 June 30, 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, -2- representatives, lawyers, and all persons acting by, through, under, or in concert with them or any of them of and from any and all manner 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 Party as alleged in or arising out of, or which could have been raised in, based upon, or related to the Claim, whether provided by law at the time of the execution of this Agreement 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 attorneys 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 Parties 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, liabilities, 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, indemnities, actions, causes of action, obligations, costs, expenses, attorney's fees, damages, losses, claims, 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 -3- Parties expressly agree that the release 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 Iaw 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 to 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. -4- 10. Waivers. A waiver of a breach or covenant or other provision in this Agreement shall not be deemed a waiver of any other breach 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 or 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 terms of this Agreement. -5- 15, Successors. This Agreement shall inure to the benefit of and shall be binding upon the Parties and their respective heirs, successors,and assigns. 16. Governing 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 HF,REBY 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. [REMAINDER OF PAGE INTENTIONALLY BLANK; SIGNATURES FOLLOW] -6- IN WITNESS WHEREOF, the County and City have executed this AgreemenL to be effective on and as of the Effective Date set forth in the preamble of this Agreement. COUNTY OFRIVERSIDE Date: (01 { Iz✓ By: County of Riverside CITY OF PALM SPRINGS Date: /`rat 2oi'�P/3 By: City APPROVED AS TO�cFORIM: OFFICE OF COUNTY COUNSEL Date: � J By: A& _ L. AE-rXANDILAJONG Deputy County Counsel Attorneys for County of Riverside APPROVED AS TO FORM: Date: �3 ? �/3 By: Atto eys for City LAF:ay G:TtopertylP W ALLS\PTAF W GMTSTFA F_Set]Agmt-PehnSprings.doc -7- EXHIBIT A CLAIM [TO BE ATTACHED] Exhibit A 1 COUNTY OF RIVERSIDE CLAIM FOR DAMAGES TO PERSON OR PROPERTY OFFICE USE ONLY ANO*fiAf INSTRUCTIONS: RE, �ED 1. Read cialm thoroughly. /VV�1 y,��,,�'jy..J�, 2. FIN out Balm as Indicated;attach additional information if necessary. M J644 •}I a This office needs the onolne/cornpleted claim forth and clear readable copies �p 'k of attachments Of any)if originals am not avalable. FEB 02013 4 This claim to=must be signed. DELIVER OR U.S.MAIL 70: CLERK OF THE BOARD OF SUPERVIS OR OPN1�5N MI9 CPCAIIABIGIT$A ATTN: CLAIMS DIVISION P.O. BOX 1628, 4050 LEMON 5T. 1!T FL. RIVERSIDE, CA.92502-1626 (951)955.1060 TIME STAMP HERE III C B. DO YOU CLAM THE COVN Is PESPO Cit of Im S rin s See attached 66 le 3200 East Tah qtz Can on Way c Y OPccoe Palm S rin s CA 92262 pum, U Nf36 cEE Ww THEIR TIPZNTTJINJ VOIN I , 760 323-6211 N V YORDAAAGEOFAPPlGB E} See attached J EORI OMUN(PLEASE at T7 NAME: OEPANTMENr: See e attached NSA E: A See attached s7`RSET CITY STATE ZIpcom To PERSONSKNOWNTOHAVEINFORMATION See attached S.DESCRIBE IN MT�HM DAMAGE OR T OCCUNiEO NAME "None ADDRESS See attached NAME NONE NAME P MUR IO DATE pYmcopNsaremge armpuetvnesy e WERE PCUCEOR PARAMEDICS OAUEDi J YES U NO See attached N E Y,INQUDE OATEDP FlRST VI6R AND HOSHTN.'3 NAME,ADDRESS AND PHONE NUMBER: we OF FIRST VISMwrcslcwrcsmosrnAL•s e PHYSIC TAL3 ! TOTALDMAAOES Tf)WTE T,�g•ESmut£D PRn6PECTIVE 64MAGE5 ( ,See attached 3 THIS CLAIM MUST BE SIGNED TO BE VALID. NOTE, PRESENTATION OFA FALSE CLAIM I3A FELONY P LCODF,19CTI0NT2.j WARNING: > CLAIMS FOR DEATH, INJURY TO PERSON OR TO PERSONAL PROPERTY MUST BE FILED NOT LATER THAN SIX (a) MOMS AFTER-THE OCCURRENCE. (GOVERNMENT CODE SECTION 9112) b D ALL OTHER CLAIMS FOR DAMAGES MUST BE FILED NOT LATER THAN ONE(1)YEAR AFTER THE OCCURRENCE (GOVERNMENT-GODE SECTION 911,2I � > SU8.E0TTC CERTAIN EXCEPTIONS, YOU HAVE ONLY SIX(6)MONTHS FROM THE DATE OF THE WRITTEN NOTICE OF REJECTIOthOF YOURZLASM TO FILE A COURT ACTION. (GOVERNMENT CODE SECTION 945,e) r - D IF WRITTEN NOTICE OF REJECTION OF YOUR CLAIM IS NOT GIVEN,YOU HAVE Two(2)YEARS FROM ACCRUAL OF THE CAUSEW ACTION Y4 FILE A COURT ACTION.(GOVERNMENT CODE SECTION SWISS) - - I2 C OIe PE f H16M BEHALF"' EHALF 1D AI OR P pAT ``F ' Assistant CityAttorney ®Christina M. Petteruto 2/13/13 SI RELATIONSHIP ITO ULAIMANY REVISED:BADrme] I WOODRUFF, SPRADLIN& SMART, APC DOUGLAS C. HOLLAND- State Bar No.69014 2 dhoiland((p�wss-law.com 3 CHRISTINA M.PETTERUTO- State Bar No.245514 cpetteruto(a)wss-law.com 4 555 Anton Boulevard, Suite 1200 Costa Mesa,California 92626-7670 5 Telephone: 714 558-7000 Facsimile: (714) 835-7787 6 Attorneys for Claimant 7 CITY OF PALM SPRINGS 8 COUNTY OF RIVERSIDE 9 10 11 CITY OF PALM SPRINGS, 12 V. GOVERNMENTAL CLAIM S Y 13 COUNTY OF RIVERSIDE, (Government Code§ 910) S 14 15 3 16 The City of Palm Springs ("City") hereby submits this claim for a refund of 17 improperly imposed property tax administration fees ("PTAF") for the period from 2006- 18 2012. 19 This claim is based on the recent California Supreme Court decision in Cjjy of 20 Alhambra, et al. v. County of Los Angeles, et al.. 55 Cal.4" 707 (2012), in which the Court 21 held that the methodology used by the County of Los Angeles, which was also used by the 22 County of Riverside, to calculate PTAF was improper and resulted in cities being 23 overcharged. The amount of PTAF improperly imposed upon the City of Palm Springs is 24 currently unknown, but the City estimates the amount to be approximately $386,666.60(see 25 attached spreadsheet). 26 By filing this claim, the City in no way concedes that a claim is required under the 27 Government Claims Act (Government Code §810 et seq.), and reserves the right to assert 28 that no claiming requirement applies. 1 910361.1 I All notices regarding this claim should be sent to Christina M. Petteruto, Assistant 2 City Attorney, at the address set forth above. 3 DATED: Februaryj , 2013 WOODRUFF, SPRADLIN & SMART, APC 4 5 By: akdt"L�-) 6 DOUGLAS C. HOLLAND 7 CHRISTINA M. PETTERUTO Attorneys for Claimant 8 CITY OF PALM SPRINGS 9 10 11 12 t 13 14 < 15 3 16 17 18 19 20 21 22 23 24 25 26 27 28 2 910361.1 City of Palm Springs PTAF Estimate 2006-07 2007-09 2008-09 2009-10 2010-11 2011-12 Sales Tax in lieu 2,762,492 2,223,619 2,251,109 1,769,224 2,506,643 2,366,732 VLF 3,372,257 3,849,143 4,019,856 3,802,569 3,578,466 3,481,240 Subtotal 6,134,749 6,072,762 6,270,964 5,571,793 6,085,109 5,847,972 AS$Taxes 16,810,791 18,537,215 19,101,770 17,846,551 17,045,623 16,705,066 Total Allocation 22,945,540 24,609,977 25,372,734 23,418,344 23,130,732 22,553,038 PTAF Charged 201,986 225,252 291,240 282,582 242,615 285,540 PTAF%Charged 0.880% 0.915% 1,148% 1.207% 1.049% 1.266% PTAF Refund 54,003.24 55,583-22 71,981,03 67,233.12 63,825.85 74,040.13 386,666.60 ir+ y +if=.+xr. x�' .✓;Y'lckwty+ s. w F � � ae a � +n`✓ �� a � N 1 r � a, � �fy��S �'z e r: ' k v "��„I � 4FHa ��.�£ n� ��+✓ ...`v;�.�`' w � '��' � `; �` �''"� i ,�.; "xat'r.3ia,'�,�R� xv� '�o-w'" W� � a� h e ��J�,` ", e�yc6V��arS xi y,y., sRrtt:`,w" siu n�: 4O `. r 5• M 4.- RYe � q t R S �tr ro �}rb,k4 r r 3 v .�` 0 ��ppq 5p A r �(•t� l `Y � P:5�. ku�.�R4t b • r r. I. , 1. e . . ! .. . . • n Wal 555 ANTON BOULEVARD.SID1E 1200 COSPAT4E44GA9P5267670 46MT-Irr v`kr... `d�dlka ^5fh r o-r-V K Clerk of the Board of Supervisors ' ' Attn: Claims Division P.O.Box 1628 4080 Lemon St., I'Floor Riverside,CA 92502-1628 d s�hrdd'�C' 4sa�"wa'3 4 , � � X �a�r,yt�h . K �(v• d�arc if xa n1. s ,:r 4v 4s V4U 'iF bh i S.� m �s yS:.� ^<..�' k }x �,,. 'w„d F 2`� JM s x@ ��i t 'u<` ,:fir .�. ..... ,z „ u r,.R. A.,e a .'' ✓°. .� ` i;, ' :, ', (dtllriri,IrttlflrlNtlttt�l�rh�trt�rtr,n„trrrr�m,r ,