1 PROPERTY TAX REVENUE SHARING AGREEMENT BETWEEN SAN
BERNARDINO COUNTY, SAN BERNARDINO COUNTY FIRE PROTECTION
DISTRICT, CITY OF BARSTOW AND THE BARSTOW FIRE PROTECTION DISTRICT RELATED TO PROPERTY TAX SHARING FOR LAFCO 3280
WHEREAS, the City of Barstow (City) has filed an application with the Local Agency Formation Commission for San Bernardino County (LAFCO) for reorganization related to the Barstow International Gateway Project (BIG Project) identified as LAFCO 3280; WHEREAS, the reorganization includes annexations to the City, Barstow Fire Protection District (BFPD), and Odessa Water District, and detachments from the San Bernardino County Fire Protection District (SBCFPD), its North Desert Service Zone and its Zone FP5, and County Service Area (CSA) 70; WHEREAS, The overall reorganization area for LAFCO 3280 encompasses approximately 2,702 acres. The area proposed for annexation to the City and Odessa Water District and detachment from CSA 70 is approximately 2,686 acres, and the area proposed for annexation to BFPD and detachment from SBCFPD, its North Desert Service Zone, and its Zone FP-5 is approximately 2,609 acres; WHEREAS, Chief Dan Munsey from SBCFPD and Rochelle Clayton, City Manager and BFPD General Manager, previous signed a “Joint Letter of Understanding re TaxAllocation Agreement for the BIG Project Annexation (Barstow, CA)” (Letter of Understanding);
WHEREAS, the Letter of Understanding stated SBCFPD, City and BFPD agree that SBCFPD shall continue to receive the fire-service share of property tax, including future increases, as more fully described in this Agreement for the area of the BIG Project to be annexed into the City and BFPD, to allow SBCFPD to provide comprehensive fire, rescue, emergency medical, and specialized incident-response services for the area surrounding the annexed area, and mutual aid within the annexed area; WHEREAS, an amount equal to the fire-service share of property tax currently allocated to SBCFPD from Tax Rate Areas 056-062 and 056-104 (or their successor tax rate areas as assigned by the California State Board of Equalization pursuant to its Tax Rate Area Change Notice), to be transferred to SBCFPD by BFPD following reorganization, notwithstanding that such allocation shall transfer to BFPD by operation of Revenue and Taxation Code Section 99, as more fully described in this Agreement, in recognition of SBCFPD’s continuing obligation to provide services in the BIG Project area; WHEREAS, as a term and condition of the reorganization, San Bernardino County (County), the SBCFPD, City and BFPD shall enter into an agreement which directs the Auditor/Controller/Treasurer/Tax Collector for the County to transfer property tax as described in Exhibit B; and
2 WHEREAS, the County, SBCFPD, City and BFPD now desire to enter into the Agreement regarding the property tax revenue sharing related to SBCFPD resulting from the reorganization related to the BIG Project.
NOW, THEREFORE, the County, SBCFPD, City and BFPD hereby agree as follows:
1. Recitals
1.1 The recitals set forth above are true and correct and are incorporated herein.
2. Definitions
2.1 Agreement: This Agreement between the County, SBCFPD, CITY and BFPD.
2.2 ATC: Auditor/Controller/Treasurer/Tax Collector for San Bernardino County.
2.3 GTL: General Tax Levy.
2.4 Legacy TRAs: Tax Rate Areas 056-062 and 056-104, which identify the SBCFPD property tax allocation existing within the affected territory immediately prior to the reorganization under LAFCO 3280.
2.5 Property Tax Transfer Resolutions: The San Bernardino County Board of Supervisors Resolution and the Barstow City Council Resolution identifying the property tax revenue amounts that would be transferred as a result of the jurisdictional change related to LAFCO 3280. This is separate from the property tax revenue sharing addressed in this Agreement.
2.6 Revenue Sharing Transfer: The contractual transfer, pursuant to this Agreement, from BFPD to SBCFPD of the property tax revenue calculated pursuant to Section 3 of this Agreement and Exhibit B.
2.7 SBCFPD Legacy Allocation Percentage: The property tax allocation percentage attributable to SBCFPD within each Legacy TRA immediately prior to completion of LAFCO 3280.
2.8 Successor TRA(s): The tax rate areas established by the State Board of Equalization for the affected territory corresponding to the Legacy TRAs following completion of LAFCO 3280.
2.9 TRA: Tax Rate Area.
3. Property Tax Allocation
3.1 The parties agree that regardless of anything contrary included in the Property Tax Transfer Resolutions, the property tax revenue that is currently apportioned to SBCFPD for the BIG Project area that will be annexed into the City and BFPD under LAFCO 3280, shall continue to be provided to SBCFPD, upon the annexation of the area into the City and BFPD.
3.2 BFPD agrees that the property tax revenue attributable to the former SBCFPD allocation, as identified and calculated pursuant to Exhibit B shall be transferred to SBCFPD in accordance with this Agreement.
3 3.3 Following issuance of the State Board of Equalization TRA Change Notice, ATC shall identify the Successor TRA(s) corresponding to the affected portions of Legacy TRAs 056-062 and 056-104. The Legacy TRA numbers and applicable SBCFPD Legacy Allocation Percentage shall be used to establish the prereorganization property tax share subject to this Agreement. Thereafter, ongoing administration of the Revenue Sharing Transfer shall be based on the applicable Successor TRA(s) and the applicable transfer percentages identified in the Revenue Transfer Schedule in Exhibit B.
3.4 For each applicable Successor TRA, ATC shall apply the SBCFPD property tax allocation percentage in effect immediately prior to the reorganization for the corresponding affected territory, as set forth in Exhibit B, to the property tax revenue allocated to BFPD for that Successor TRA. The resulting amount shall be transferred from BFPD to SBCFPD.
3.5 Notwithstanding the foregoing, ATC shall implement the applicable property tax revenue transfer and allocation adjustments beginning with the roll year identified in the applicable State Board of Equalization Tax Rate Area Change Notice or other official BOE action. No property tax revenue transfer or allocation adjustment shall be implemented in the middle of an established roll year. If the effective date of the annexation occurs before the beginning of the applicable roll year, any funding intended to cover the interim period shall be addressed separately by the parties and shall not require ATC to reopen or adjust an established roll year.
3.6 Exhibit B shall identify the SBCFPD Legacy Allocation Percentage for each Legacy TRA, the corresponding Successor TRA(s), and the Property Tax Revenue components included in or excluded from the Revenue Sharing Transfer, including current-year 1% GTL, prior-year 1% GTL, supplemental revenue, and penalties and interest associated with the 1% GTL. Exhibit B shall also set forth the methodology ATC will use to calculate, track, and administer the Revenue Sharing Transfer. Any annual revenue amounts shown are for reference only and do not establish a fixed transfer amount.
3.7 ATC may establish or modify administrative accounts or sub-accounts as necessary to separately track the applicable Successor TRA(s) and administer this Agreement, provided that such administrative changes do not alter the transfer percentage or revenue-sharing methodology established by this Agreement.
3.8 The Revenue Sharing Transfer shall continue to apply to the property tax revenue attributable to the applicable Successor TRA(s) in accordance with the revenue components and methodology specified in Exhibit B, unless modified by written agreement of the parties.
4 4. Term
4.1 This Agreement is permanent to provide a sustainable funding source for SBCFPD as a result of the reorganization under the related LAFCO actions.
5. Potential Future Jurisdictional Reorganization
5.1 The parties agree that should there be future additional jurisdictional reorganizations, the parties agree to meet to discuss the impact of the jurisdictional changes. The meeting may be requested by any party to this Agreement.
6. Indemnification
6.1 County and SBCFPD agrees to indemnify, defend (with counsel approved by the City and BFPD) and hold harmless the City and BFPD and their officers, employees, agents, volunteers from any and all claims, actions or losses, damages, and/or liability resulting from the County and/or SBCFPD’s negligent acts or omissions which arise from the County and/or SBCFPD’s performance of its obligations under this Agreement.
6.2 City and BFPD agree to indemnify, defend (with counsel approved by County and SBCFPD) and hold harmless the County and SBCFPD and their officers, employees, agents and volunteers from any and all claims, actions, losses, damages and/or liability resulting from the City and/or BFPD’s negligent acts or omissions which arise from the City and/or BFPD’s performance of its obligations under this Agreement.
6.3 In the event the County, SBCFPD, City and/or BFPD are found to be comparatively at fault for any claim, action, loss or damage which results from their respective obligations under the Agreement, the County, SBCFPD, City and/or BFPD shall indemnify the other to the extent of its comparative fault.
Furthermore, if the County, SBCFPD, City and/or BFPD attempt to seek recovery from the other for Workers’ Compensation benefits paid to an employee, the County, SBCFPD, City and/or BFPD agree that any alleged negligence of the employee shall not be construed against the employer of that employee.
7. Notice
5 7.1 Any notice to be given pursuant to this Agreement shall be deemed fully given when made in writing and either served personally or deposited in the United State mail, postage prepaid and addressed as follows:
If to San Bernardino County:
County Chief Financial Officer
385 N. Arrowhead Avenue, 4th Floor
San Bernardino, CA 92415
If to Auditor-Controller/Treasurer/Tax Collector
268 W. Hospitality Lane, 4th Floor
San Bernardino, CA 92415
If to San Bernardino County Fire Protection District:
Fire Chief
598 S. Tippecanoe Ave.
San Bernardino, CA 92408
If to City of Barstow
City Manager
220 East Mountain View St., Suite A
Barstow, CA 92311
If to Barstow Fire Protection District
Fire Chief
220 East Mountain View St., Suite A
Barstow, CA 92311
Each party shall notify the other within ten business days of any change in the above addresses or personnel titles.
8. Amendments and Modifications.
8.1 The parties agree that any alterations, variations, modifications, or waivers of the provisions of this Agreement, shall be valid only when reduced to writing and executed by the person(s) authorized to do so on behalf of each of the parties.
9. Agreement Assignability
6 9.1 Without the prior written consent of all parties, the Agreement is not assignable by any party, either in whole or in part.
10.Attorney’s Fees and Costs
10.1 If any legal action is instituted to enforce any parties’ rights hereunder, each party shall bear its own costs and attorney’s fees, regardless of who is the prevailing party. This paragraph shall not apply to those costs and attorney’s fees directly arising from a third-party legal action against a party hereto and payable under the indemnification requirements.
11.Choice of Law and Venue
11.1 This Agreement shall be governed by and construed according to the laws of the State of California.
11.2 The parties acknowledge and agree that this Agreement was entered into and intended to be performed in San Bernardino County, California. The parties agree that the venue of any action or claim brought by any party to this Agreement will be the Superior Court of California, San Bernardino County, San Bernardino District. Each party hereby waives any law or rule of the court, which would allow them to request or demand a change of venue. If any action or claim concerning this Agreement is brought by any third party and filed in another venue, the parties hereto agree to use their best efforts to obtain a change of venue to the Superior Court of California, San Bernardino County, San Bernardino District.
12.Entire Agreement
12.1 This Agreement, including all Exhibits and other attachments, which are attached hereto and incorporated by reference, and other documents incorporated herein, represents the final, complete and exclusive agreement between the parties hereto. Any prior agreement, promises, negotiations or representations relating to the subject matter of this Agreement not expressly set forth herein are of no force or effect. This Agreement is executed without reliance upon any promise, warranty or representation by any party or any representative of any party other than those expressly contained herein. Each party has carefully read this Agreement and signs the same of its own free will.
13.Execution of Agreement
7 13.1 This Agreement may be executed in any number of counterparts, each of which so executed shall be deemed to be an original, and such counterparts shall together constitute one and the same Agreement. The parties shall be entitledto signandtransmitanelectronic signatureofthisAgreement(whether by facsimile, PDF or other mail transmission), which signature shall be binding on the party whose name is contained therein. Each party providing an electronic signature agrees to promptly execute and deliver to the other party an original signed Agreement upon request.
8 IN WITNESS WHEREOF, each party has caused this Agreement to be executed by its respective duly authorized officers, on its behalf.
BARSTOW FIRE PROTECTION DISTRICT
By: ____________________________________
Name/Title
Dated: ____________________________
CITY OF BARSTOW
By: ____________________________________
Rochelle Clayton, District Manager
Dated: ____________________________
SAN BERNARDINO COUNTY FIRE
PROTECTION DISTRICT
____________________________________
Dawn Rowe, Chair, Board of Directors
Dated: ____________________________
SIGNED AND CERTIFIED THAT A COPY OF THIS
DOCUMENT HAS BEEN DELIVERED TO THE
CHAIRMAN OF THE BOARD
Lynna Monell, Secretary
By _________________________
Deputy
SAN BERNARDINO COUNTY
____________________________________
Dawn Rowe, Chair, Board of Supervisors
Dated: ____________________________
SIGNED AND CERTIFIED THAT A COPY OF THIS
DOCUMENT HAS BEEN DELIVERED TO THE
CHAIRMAN OF THE BOARD
Lynna Monell
Clerk of the Board of Supervisors
San Bernardino County
By _________________________
Deputy