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CA 400 Upper Toyon Road Tax Exchange AgreementTAX EXCHANGE AGREEMENT BETWEEN THE CITY OF SAN RAFAEL AND THE TOWN OF ROSS RELATING TO THE APPLICATION TO LAFCO FOR DETACHMENT OF 400 UPPER TOYON DRIVE FROM THE CITY OF SAN RAFAEL AND ITS ANNEXATION TO THE TOWN OF ROSS (Assessor's Parcel NOS. 012-121-28, 012-121-04, 012-121-05, 012-121-22) THIS TAX EXCHANGE AGREEMENT ("Agreement") is made and executed in duplicate this 1 day of A-vl A S t , 2019 by and between the CITY OF SAN RAFAEL, a California charter city ("SAN RA AEL"), and the TOWN OF ROSS, a California municipal corporation ("ROSS"). RECITALS A. Raphael de Balmann, the owner of the real property situated within the city limits of SAN RAFAEL commonly known as 400 Upper Toyon Drive, Kentfield, California, and bearing Assessor's Parcel No. 012-121-28 (the "PROPERTY") has filed an application with the Marin Local Agency Formation Commission requesting its approval of the detachment of the PROPERTY from SAN RAFAEL and its annexation to ROSS (hereafter, the "Reorganization"). B The PROPERTY is more particularly described in Exhibit A attached hereto and shown on the map attached as Exhibit B hereto, improved with a single-family residence, which is situated on the border between SAN RAFAEL and ROSS and is served by Upper Toyon Drive, a SAN RAFAEL public street. C. Between the Property and ROSS Town Limits, there are three exempt parcels idenitified as Assessor's Parcels Nos. 012-121-04, 012-121-05, 012-121-22, currently owned by the Marin Municipal Water District ("MMWD Properties"). The MMWD Properties will need to be annexed to ROSS as part of annexation of the Property to ROSS. Currently, the MMWD Properties are exempt from ad valorem real property taxes being assessed. However, should the MMWD Properties be subject to any ad valorem real property taxes in the future, this Agreement shall govern the allocation of any sharing of the real property ad valorem taxes. D. On June 6, 1978, the voters of the State of California amended the California Constitution by adding Article XIIIA thereto which limited the total amount of property taxes which could be levied on property by local taxing agencies having such property within their territorial jurisdiction to one percent (1%) of full cash value E. Subsequently, the California Legislature added Section 99 to the California Revenue and Taxation Code, which requires a city seeking to annex property to its incorporated territory and a city from which such property will be detached to agree upon an exchange of property taxes derived from such property and available to each city following the reorganization. F. In order to support the request of the PROPERTY's owner, SAN RAFAEL and ROSS wish to work together to develop a fair and equitable approach to the sharing of real property ad valorem taxes imposed and collected as authorized by the Revenue and Taxation Code in order to encourage sound urban development and economic growth. Lj --I — (& G. Close cooperation between SAN RAFAEL and ROSS is necessary to maintain and improve the quality of life throughout both cities and the County of Marin and deliver needed or desirable services in the most timely and cost-efficient manner to all SAN RAFAEL and ROSS residents. H. SAN RAFAEL and ROSS have, after negotiations, reached an understanding as to a rate of exchange of property tax revenues to be made pursuant to Section 99 of the California Revenue and Taxation Code. I. This Agreement memorializes the understanding between SAN RAFAEL and ROSS and constitutes an enforceable property tax transfer agreement, under Section 99 of the California Revenue and Taxation Code. NOW, THEREFORE, in consideration of the exchange of tax revenue, as provided for in this Agreement, and for other good and valuable consideration, the sufficiency of which is acknowledged by the parties, SAN RAFAEL and ROSS agree as follows: AGREEMENT Section 1. Definitions. For purposes of this Agreement, the following terms shall have the meanings set forth below: (a) "Property Tax Revenue" shall mean revenue in the form of "ad valorem real property taxes on real property", as said term is used in Section 1 of Article XIIIA of the California Constitution and more particularly defined in subsection (c) of Section 95 of the California Revenue and Taxation Code, that is collected from the PROPERTY and the MMWD Properties and is available for allocation to SAN RAFAEL and/or ROSS. (b) "Reorganization Date" shall mean the date specified by the Marin Local Agency Formation Commission consistent with the Cortese -Knox -Hertzberg Local Governmental Reorganization Act of 2000 (California Government Code § 56000 et seq.) as the effective date of the detachment of the PROPERTY and the MMWD Properties from SAN RAFAEL and its annexation to ROSS. Section 2 General Purpose of Agreement. The general purpose of this Agreement is to devise an equitable exchange between SAN RAFAEL and ROSS of the Property Tax Revenue derived from the PROPERTY and MMWD Properties, as required by Section 99 of the Revenue and Taxation Code Section 3. Exchange of Tax Revenues. On and after the Annexation Date, SAN RAFAEL and ROSS shall share the current allocated SAN RAFAEL Property Tax Revenue collected from the PROPERTY and MMWD Properties in perpetuity as follows: ROSS share = 75% SAN RAFAEL share = 25% Section 4. Exchange by County Auditor, SAN RAFAEL and ROSS further agree that all of the exchanges of Property Tax Revenue from the PROPERTY and MMWD Properties required by this Agreement shall be made by the County Department of Finance, and both SAN RAFAEL and ROSS agree to mutually work with the County to effectuate the allocation agreed to herein. Section 5. No Opposition. In consideration of the exchange of tax revenue provided for in this Agreement, as well as the pre -detachment agreement between SAN RAFAEL and the PROPERTY owner, SAN RAFAEL and ROSS agree not to oppose the PROPERTY owner's application before the Marin Local Agency Formation Commission to detach the PROPERTY and the MMWD Properties from SAN RAFAEL and to annex it to ROSS. Section 6. Dispute Resolution. In the event of any dispute arising out of or relating to this Agreement, the parties shall attempt, in good faith to promptly resolve the dispute mutually between themselves. If the dispute cannot be resolved within 30 calendar days of initiating such negotiations or such other time period as may be mutually agreed to by the parties in writing, either party may pursue its available legal and equitable remedies, pursuant to the laws of the State of California. Section 7 Third -party Beneficiary_ There are no third -party beneficiaries to this Agreement, and no third -party will have any right to enforce any provision of this Agreement. Section B. Modification. This Agreement and all of the covenants and conditions set forth herein may be modified or amended only by a writing duly authorized and executed by both SAN RAFAEL and ROSS Section 9. Reformation SAN RAFAEL and ROSS understand and agree that this Agreement is based upon existing law, and that such law may be substantially amended in the future. In the event of an amendment of state law which renders this Agreement invalid or inoperable or which denies any party thereto the full benefit of this Agreement as set forth herein, in whole or in part, then SAN RAFAEL and ROSS agree to renegotiate the Agreement in good faith. Section 11. Effect of Tax Exchange Agreement. This Agreement shall be applicable solely to the PROPERTY and MMWD Properties and does not constitute either a master tax sharing agreement or an agreement on property tax exchanges which may be required for any other reorganization of the boundaries of either SAN RAFAEL or ROSS. Section 12. Entire Agreement. With respect to the subject matter hereof only, this Agreement supersedes any and all previous negotiations, proposals, commitments, writings, and understandings of any nature whatsoever between SAN RAFAEL and ROSS except as otherwise provided herein. Section 13. Notices. All notices, requests, certifications or other correspondence required to be provided by the parties to this Agreement shall be in writing and shall be personally delivered or delivered by first class mail to the respective parties at the following addresses: TO SAN RAFAEL: Jim Schutz, City Manager 1400 Fifth Avenue San Rafael, CA 94901 TO ROSS Joe Chinn, Town Manager P.O. Box 320 31 Sir Francis Drake Boulevard Ross, CA 94957 Notice by personal delivery shall be effective immediately upon delivery. Notice by mail shall be effective upon receipt or three days after mailing, whichever is earlier. Section 14. Approval. Consent. and Agreement. Wherever this Agreement requires a party's approval, consent, or agreement, the party shall make its decision to give or withhold such approval, consent or agreement in good faith, and shall not withhold such approval, consent or agreement unreasonably or without good cause Section 15 Construction of Captions. Captions of the sections of this Agreement are for convenience and reference only. The words in the captions in no way explain modify. amplify, or interpret this Agreement Section 16. Incorporation by Reference. Exhibits A and B, attached hereto, are incorporated into this Agreement by this reference. Section 17. Authority. The undersigned acknowledge that they are duly authorized to execute this Agreement. IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the date set forth above. CITY OF SAN RAFAEL By: �. M SC IJTZ, Cit Man ger ATTEST: t LINDSAY LARA, City Clerk APPROVED AS TO FORM: LaI -,- L� Q7 ROBERT F. EPSTEN, Citytorney TOWN OF ROSS By: _�cq.:.— JOliCHINN, Town Manager ATTEST: Attachments: Exhibit A -Legal Description of Property Exhibit B - Map of Property LINDA LOPEZ, Town berfV BENJAMIN L. ST CK, Town Attorney EXHIBIT "A" Legal Description For APNIParcel ID(s): 012-121-28 THE LAND REFERRED TO HEREIN BELOW IS SITUATED IN THE CITY OF SAN RAFAEL COUNTY OF MARIN STATE OF CALIFORNIA AND IS DESCRIBED AS FOLLOWS: LOT 24, AS SHOWN UPON THAT CERTAIN MAP ENTITLED, "MAP OF OAKWOOD UNIT NO T: FILED FOR RECORD ON APRIL 11, 1984 IN VOLUME 19 OF MAPS, AT PAGE 12, MARIN COUNTY RECORDS APN. 012-121-28 g� n Exhibit "B" RAF` 1 i 2 � yo 'rywlTH P�5 CONTRACT ROUTING FORM INSTRUCTIONS: Use this cover sheet to circulate all contracts for review and approval in the order shown below. TO BE COMPLETED BY INITIATING DEPARTMENT PROJECT MANAGER: Contracting Department: City Attorney Project Manager: Lisa Goldfien Extension: 3081 Contractor Name: Town of Ross Contractor's Contact: Ben Stock, Town Attorney Contact's Email: rhurd@rflawllp.com ❑ FPPC: Check if Contractor/Consultant must file Form 700 Step 1 2 3 4 5 RESPONSIBLE DESCRIPTION T COMPLETED T REVIEWER DEPARTMENT DATE Check/Initial ❑ Project Manager a. Email PINS Introductory Notice to Contractor 6 b. Email contract (in Word) and attachments to City Click here to Attorney c/o Laraine.Gittens@cityofsanrafael.org enter a date. c. Check with City Attorney re Insurance 7 City Attorney Requirements for extra small or large projects t _ _ agreement 7/31/2019 ® LG City Attorney a. Review, revise, and comment on draft agreement and return to Project Manager 7/31/2019 ® LG b. Confirm insurance requirements, create Job on 4J14 PINS, send PINS insurance notice to contractor for Public Works Contracts 8/1/2019 N LG_ Department Director Approval of final agreement form to send to� contractor Agreement executed by City Council authorized IX Project Manager Forward three (3) originals of final agreement to 8/1/2019 contractor for their signature I Project Manager When necessary, contractor -signed agreement ❑ N/A �b agendized for City Council approval * I lI forwards copies to Project Manager 1 *City Council approval required for Professional Services Agreements and purchases of goods and services that exceed Or $75,000; and for Public Works Contracts that exceed $175,000 5/6/2019 Date of City Council approval CONTINUE ROUTING PROCESS WITH HARD COPY Will i PRINT Project Manager 6 Forward signed original agreements to City Attorney with printed copy of this routing form Review and approve hard copy of signed /]f f 7 City Attorney agreement D Dl i 8 City Attorney Review and approve insurance in PINS, and bonds for Public Works Contracts 9 City Manager/ Mayor Agreement executed by City Council authorized IX official I 10 City Clerk Attest signatures, retains original agreement and �b I lI forwards copies to Project Manager 1