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Home My WebLink About7/31/2002 - STAFF REPORTS (12) DATE: July 31, 2002 TO: City Council FROM: Director of Finance & Treasurer RE: Time Limits on Refunds and Claims for Money & Damages RECOMMENDATION: It is recommended that the City Council approve an Ordinance amending Municipal Code sections 3.16.010, 3.24.150, 3.28.150, and 3.32.210, and adding new sections 3.16.15 and 3.16.18 for the purpose of defining time limits for claims for money and damages, and for claims for various types of refunds. SUMMARY: The City's current Municipal Code does not consistently refer to a general claims procedure. The proposed ordinance would establish a 100-day time limit for the filing of claims for injury or death to a person, and a one-year time limit for all other claims, consistent with State law. BACKGROUND: Most of the sections of the Municipal Code that deal with the collection of taxes, fees or fines do not specifically note a time limit on a refund request. The major exception is the Transient Occupancy Tax ordinance, which allows a three-year time limit on refunds. However, the City has rarely, if ever, received requests for refund of TOT going back that far. The City has, however, received requests for other kinds of refunds going back as far as 22 years. Researching these claims is time consuming, and often fruitless. Without a clear City policy, staff has to consult the City Attorney for direction on the relevant State law. The proposed ordinance, prepared by the City Attorney's office, will add clarity, consistency and ease of use to existing requirements in the Municipal Code. Submitted by Approved 9 Thomas M. Kanarr ` David H. Ready Director of Finance & Treasurer City Manager Attachment: Ordinance ORDINANCE NO. AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS AMENDING SECTION 3.16.010 - CLAIMS FOR MONEY OR DAMAGES AND ADDING NEW SECTIONS 3.16.15 AND 3.16.18, AND AMENDING SECTIONS 3.24.150, 3.28.150, AND 3.32.210 OF THE PALM SPRINGS MUNICIPAL CODE WHEREAS, the City Charter in Section 909 provides the authority for the requirement for any claims not governed by the general laws of the State of California to be presented within ninety (90) days after the occurrence, event or transaction; and WHEREAS, the courts have interpreted claims against local entities to be a matter of statewide concern and only subject to local regulation where specifically provided for by State law; and WHEREAS, California Government Code 935 provides authority for cities to adopt claims procedure requirements for claims not specifically covered by state law while retaining certain time limitations on that control; and WHEREAS, the current Municipal Code does not consistently refer to the general claims procedure; and WHEREAS, reference to a general procedure for claims presentation will add clarity and ease of use to existing requirements in the Municipal Code. THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, DOES HEREBY ORDAIN AS FOLLOWS: SECTION 1: Section 3.16.10 - Claims for money or damages , of Title 3, Revenue and Finance of the Palm Springs Municipal Code, is hereby amended to read in its entirety as follows: 3.16.010 Claims for Money or Damages. Pursuant to the authority granted in Section 935 of the California Government Code, the claims procedures in this Chapter are established as a prerequisite to bringing suit against the city or any officer, department, commission or board of the city, for any claim for money or damages (including claims which would otherwise be excepted by Section 905 of the Government Code of California) which is not governed by any other statutes or regulations expressly relating thereto. SECTION 2: Sections 3.16.015, 3.16.016 and 3.16.018 of Title 3, Revenue and Finance of the Palm Springs Municipal Code are hereby added as new provisions as follows: 3.16.15 Claims Presentation Requirements. All claims for money or damages shall be presented and acted upon as a prerequisite to suit thereon. Claims which are required to follow these procedures include but are not limited to the following: IRV 421703 v3 -1- I a 15 (1) Claims for the refund, rebate, exemption, cancellation, amendment, modification or adjustment of any tax, assessment, fee or charge or any portion thereof, or of any penalties, costs or charges related thereto; (2) Claims, in connection with which the filing of a notice of lien, statement of claim, or stop notice is required under any provision of law relating to mechanics', laborers' or materialmen's liens. (3) Claims by public employees for fees, salaries, wages, mileage or other expenses and allowances. (4) Claims for principal or interest upon any bonds, notes, warrants, or other evidences of indebtedness. (5) Claims which relate to a special assessment constituting a specific lien against the property assessed and which are payable from the proceeds of such an assessment, by offset of a claim for damages against it or by delivery of any warrant or bonds representing it. (6) Claims by the State or by a state department or agency or by another local public entity. 3.16.016 Time and Place for Claim Presentations; Council Action. (a) The presentation time requirements for all claims for money or damages are those set forth in Government Code Section 911.2, which requires claims for injury or death to a person to be filed within the 100Eh day from the date of the accrual of the cause of action and for all other claims to be presented not later than one year after the accrual of the cause of action. (b) The presentation of the claim shall be by delivery to the City Clerk either in person or by mail which is received within the above time requirements. (c) The claim is subject to the provisions of Government Code Section 945.6 and Section 946. (d) The City Council shall take action on a presented claim within forty-five (45) days after the claim has been presented pursuant to Government Code Section 912.4. Any claim not acted upon by the City Council shall be deemed to have been rejected on the forty-fifth (451h) day. 3.16.018 No Application Regular Course of Business. The above presentation requirements shall relate only to the bringing of suit upon any claim, and shall not be deemed to apply to the authority of the director of finance and general services, the city council, and other officers to process and pay, in the ordinary course of business, the just obligations of the city, such as routine salaries and wages, principal and interest on bonds, payments for purchases, and other like expenditures, for which there is an express budget appropriation, and in connection with which there is no dispute as to the obligation and amount being payable. IRV 421703 v3 _2_ SECTION 3. Section 3.24.150 "Refunds" of Title 3, Revenue and Finance of the Palm Springs Municipal Code, is hereby amended to read in its entirety as follows: 3.24.150 Refunds. Whenever the amount of any tax, interest or penalty has been overpaid, or paid more than once or has been erroneously or illegally collected or received by the City, a claim for refund may be filed pursuant to the City's claims for money or damages procedures in Sections 3.16.015 and 3.16.016. SECTION 4. Section 3.28.150 "Refunds" of Title 3, Revenue and Finance of the Palm Springs Municipal Code, is hereby amended to read in its entirety as follows: 3.28.150 Refunds. Whenever the amount of any tax, interest or penalty has been overpaid, or paid more than once or has been erroneously or illegally collected or received by the City, a claim for refund may be filed pursuant to the City's claims for money or damages procedures in Sections 3.16.015 and 3.16.016. SECTION 5. Section 3.32.210 "Refunds" of Title 3, Revenue and Finance of the Palm Springs Municipal Code, is hereby amended to read in its entirety as follows: 3.32.210 Refunds. (a) Whenever the amount of any tax, interest or penalty has been overpaid, or paid more than once or has been erroneously or illegally collected or received by the City, a claim for refund may be filed pursuant to the City's claims for money or damages procedures in Sections 3.16,015 and 3.16.016. (b) Notwithstanding any other provisions of this section, whenever a service supplier, pursuant to an order of the California Public Utilities Commission or a court of competent jurisdiction, makes a refund to service users of charges for past utility service, the taxes paid pursuant to this chapter on the amount of such refunded charges shall also be refunded to service users by the service supplier, and the service supplier shall be entitled to claim a credit for such refunded taxes against the amount of taxes which is due upon the next monthly return. In the event this chapter is repealed, amounts of any refundable taxes will be borne by the city. (Ord. 1272 §10, 1986; Ord. 1268 §1 (part), 1986). W63 IRV 921703 v3 _3 SECTION 6. EFFECTIVE DATE. This Ordinance shall be in full force and effect thirty (30) days after passage. SECTION 7. PUBLICATION. The City Clerk is hereby ordered and directed to certify to the passage of this Ordinance, and to cause the same or a summary thereof or a display advertisement, duly prepared according to law, to be published in accordance with law. ADOPTED this day of 12002. AYES: NOES: ABSENT: ABSTAIN: City Clerk Mayor REVIEWED AND APPROVED I HEREBY CERTIFY that the foregoing Ordinance No. was duly adopted by the City Council of the City of Palm Springs, California, in a meeting held on the _day of 2002 and was published in the , a newspaper of general circulation on 2002. PATRICIA A. SANDERS City Clerk 5q IRV k21703 V3 -4-