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Contracts & Agreements_161-2003_CCv0001.pdf
CONTRACT FOR THE APPORTIONMENT OF SALES AND USE TAX REVENUE AND THE PROVISION OF MUNICIPAL SERVICES WITHIN THE UNINCORPORATED AREA COMMONLY KNOWN AS THE DONIIT HOLE This Contract for the apportionment of sales and use tax revenue generated by businesses located n ithin the Donut Hole and for the provision of municipal services to the Donut Hole(the "Contract")is made by and between the County of San Bernardino, a political subdivision of the State of California (the "County ) and the City of Redlands, a municipal corporation situated in the County of San Bernardino (the "City"), who are together sometimes referred to herein as the "Parties." RECITALS WHEREAS,the geographic area known as the Donut I hole(more fully described in Exhibit"A" entitled "Donut Hole Description")is located in the unincorporated area of the County but is completely surrounded on all sides by the City; and WHEREAS, both the County and the City have an interest in developing, promoting and maximizing the beneficial use of the Donut Hole as an emerging regional business center; and WHEREAS, businesses seeking locations in the Donut Hole should not become entangled in disputes between the County and the City over the receipt of sales and use tax revenue,the provision of municipal services and other jurisdictional issues; and WHEREAS,the County and the City desire to apportion the sales and use tax revenue generated by businesses located in the Donut Hole generally on the basis of ninety percent(900 o)of such sales and use tax revenue being provided to the City and ten percent(10%)of such sales and use tax revenue being provided to the County;with the apportionment formula changing under certain circumstances specified in this Contract to provide one hundred percent (100%) of the sales and use tax revenue generated by businesses in the Donut Hole to the City; and WHEREAS, in 1998, the voters of California approved Proposition No. 11 which amended Article XIII,Section 29 of the California Constitution to allow cities and counties to enter into contracts to apportion sales and use tax revenue, by ordinance or resolution, and upon approval by a two-thirds vote of the legislative bodies of the parties to the contract; and WHEREAS,the State Legislature amended Government Code sections 55700 et ses1 to provide cities and counties the option to approve contracts apportioning sales and use tax revenue consistent with the provisions of Article XIII, Section 29 of the California Constitution; and WHEREAS,it is the intent of the Parties to approve this Contract for apportionment of sales and use tax revenue and the provision of municipal services by resolution, and by a two-thirds vote of the Council of the City and a two-thirds vote of the Board of Supervisors of the County in accordance with Cioverntnent Code section 55704„5; and -WHEREAS, the Parties have determined, by resolution, that (1) businesses have been established,and will be established,within the Donut Hole and that consumers residing in the City are, and Will be,purchasing tangible personal property from such businesses:(2)that equity requires that the sales and use tax revenue received by the County and the City from such businesses be apportioned between the City and the County for the benefit of their respective citizens;and(3)that the Chaimnin of the Board of Supervisors of the County and the Mayor of the City of Redlands be authorized to execute this Contract; and WHEREAS, the County and City desire to apportion the sales and use tax revenue generated from businesses in the Donut Hole in the manner specified in this Contract irrespective of present or future jurisdictional boundaries and subsequent reorganizations of property; and WHEREAS,Government Code sections 54980 et seq. authorize the legislative body of any local agency to contract with any other local agency for the performance by the latter, for valuable consideration, of any municipal services or functions within the territory of the former; and WHEREAS, the Local Agency Formation Commission of the County of San Bernardino ("LAECOH) has approved the City's provision of fire protection, water and wastewater services to the Donut Hole and the City is presently providing such services to the Donut Hole; and WHEREAS,in addition to fire protection,water and wastewater services,upon approval by the LAFCO, the City is willing to provide the additional service of law enforcement to the Donut Hole in consideration of the County's agreement to apportion sales and use tax revenue; and WHEREAS, in reliance upon the City's commitment to provide municipal services to the County in consideration of the County's apportionment of sales and use tax revenue, the County is refraining, and will continue to refrain, from pursuing viable opportunities to finance and construct infrastructure in the Donut Hole to provide water and wastewater services therein, and to fund and expand its law enforcement and fire protection operations to provide necessary services to the Donut Hole; and WHEREAS,in reliance upon the County's commitment to apportion sales and use tax revenue in the manner specified herein, the City is making, and will continue to make, capital expenditures to obtain equipment and construct facilities necessary to provide municipal services on a timely basis to the Donut Hole: and WHEREAS. it is the intent of the City, after approval of this Contract by the Redlands City Council and the County's Board of Supervisors to submit an Initiative Ordinance to the qualified voters of the City at the general municipal election scheduled for November 4,2003,and request the qualified voters of the City to consent to the extension of the term of this Contract beyond December 31,2003: and WHEREAS,City has issued a permit for the connection to the City water and wastewater system of approximately 50 acres of land known as Phase I of the Citrus Plaza project, and all Water and wastevf ater fees have been paid and water meters have been issued and installed in connection With such property; accordingly Phase 1 of the Citrus Plaza project has a prior vested right to obtain water and wastewater service from the City which vested right will continue whether or not the term of this Contract is extended by the Voters of the City in accordance with the provisions hereof: and WHEREAS, it is the intent and understanding of the Parties that this Contract shall remain operative after December 31, 2003, only if the qualified voters of the City at the general municipal election scheduled for November 4. 2003, consent to the extension of the term of this Contract beyond December 31, 2003. NOW,THEREFORE, in consideration o f the foregoing recitals,the mutual promises contained herein,and for such other good and valuable consideration the receipt of which is hereby acknowledged by the Parties, the County of San Bernardino and the City of Redlands agree as follows: AGREEMENT Section 1. Definitions. Unless the context otherwise requires, the terms defined in this section shall, for all purposes of this Contract, have the meanings specified herein, A. "Days" is defined as calendar days. B. "Donut Hole" is defined as that unincorporated area of the County of San Bernardino described in Exhibit "A" entitled "Donut Hole Description." C. "Fiscal Year is defined as July 1 through June 30. D. "Municipal Services" is defined as fire protection services,law enforcement services(not including animal control services or code enforcement services),water and wastewater services,and any related inspection and other types of ancillary services (not including plan checking) customarily undertaken by the City departments which provide fire protection, law enforcement, water and wastewater services. E. "Sales Tax Revenue"is defined as the amount of sales and use tax disbursed by the State Board of Equalization to the County or the City under authority granted to the County or the City pursuant to the Bradley-Bums Uniform Local Sales and Use Tax Law (Revenue and Taxation Code sections 7200 et seq.). Section 2. Apportionment of Sales Tax Revenue. From and after August 12, 2003, the County and the City shall apportion Sales Tax Revenue as follows: A. For each individual business generating Sales Tax Revenue in the Donut hole on August 12, 2003, the City shall receive ninety percent(900/ii) of such Sales fax Revenue and the County shall recei‘c ten percent(100 o)of such Sales Tax Revenue for a period of twenty(20)years commencing on August 12, 2003, At the end of such twenty (20) year period for each such business, on August 12, 2023,the apportionment formula shall change to provide that the City shall receive one hundred percent (100%) of the Sales fax Revenue thereafter. 3 B. For each individual business not generating Sales Tax Revenue in the Donut Hole on August 12,2003,and which begins generating Sales Tax Revenue after August 12, 2003,the City shall receive ninety percent(90%)of such Sales Tax Revenue and the County shall receive ten percent(10%ft of such Sales Tax Revenue for a period of twenty(20)years commencing on the date of issuance of the certificate of occupancy for the business generating Sales Fax ReVerme, At the end of such twenty(20) year period for each such business,the apportionment formula shall change to provide that the City shall receive one hundred percent (100°4) of the Sales Tax Revenue thereafter, C. Notwithstanding the provisions of Subsection B,above, and regardless of the number of years that have passed since the date of issuance of a certificate of occupancy for a business generating Sales Fax Revenue within the Donut Hole,commencing on August 12,2028(twenty-five years after the effective date of this Contract) for every business generating Sales Tax Revenue in the Donut Hole at that time, and every business generating Sales Tax Revenue thereafter, the City shall receive one hundred percent(100°A) of such Sales Tax Revenue until the termination of this Contract pursuant to Section 10 hereof. D. If the Bradley-Burns Uniform Local Sales and Use Tax Law(Revenue and Taxation Code sections 7200 et seq.)is modified or repealed after July 1,2003,or if the amounts of Sales Tax Revenue or the method of disbursement of Sales Tax Revenue is changed after July 1, 2003, such that another form of tax,revenue or other money(such as,but not limited to,real property taxes,income taxes,excise taxes or monies in the Education Revenue Augmentation Fund) is substituted in total or partial replacement of Sales Tax Revenue, such tax, revenue or other money shall be apportioned between the Parties consistent with the apportionment formula established in this Contract, Further,the County and the City shall fully cooperate with one another to amend this Contract as necessary or appropriate to facilitate the apportionment of such substituted tax, revenue or money in accordance with the apportionment formula established herein so that the intent of this Contract can be attained. E. The differing percentage of Sales Tax Revenue received by the Parties under the various provisions of this Contract shall be based upon the date that such Sales Tax Revenue is generated and not on the date the State Board of Equalization disburses such Sales Tax Revenue to the Parties. Section 3. Apportionment Payments. The County shall pay to the City the appropriate percentage(as specified in Section 2 above or Section 6 below) of Sales Tax Revenue received by the County from businesses in the Donut Hole within sixty(60) days of receipt of such revenue from the State Board of Equalization. If the City annexes some or all aithe Donut Hole,the City shall pay to the County the appropriate percentage (as specific in Section 2 above or Section 6 below) of Sales Tax Revenue received by the City from businesses annexed within sixty(60)days of receipt of such revenue from the State Board of Equalization. Section 4, Acemmting, The County shall provide the City with a Statement of Account upon request of the City. The Statement of Account shall include the following: Sales Tax Revenue for the Donut Hole received by the County to date for the current Fiscal Year; Sales Tax Revenue for the Donut Hole received by the County during the preceding Fiscal Year; Sales Tax Revenue for the Donut Hole disbursed pursuant to this Contract by the County to the City during the preceding Fiscal Year; and the total of all Sales Tax Revenue disbursed pursuant to this Contract by the County to the City from August 4 12,2003. If the City annexes some or all of the Donut Hole,the City shall provide the same information to the County upon request Section 5. Administration Costs. The Cotmty's Auditor/Controller/Rccordcr may deduct from amounts paid to the City pursuant to Section 3 above the Auditor Controller reasonable cost of administering the provisions of this Contract. I f the City annexes some or all of the Donut Hole, the City's Finance Department may deduct from amounts paid to the County pursuant to Section 3 above the Finance Department's reasonable cost of administering the provisions of this Contract. Section 6. Provision of Municipal Services, A. In consideration of the County's agreement to apportion Sales Tax Revenue generated by businesses located within the Donut Hole with the City, commencing on August 12, 2003 and throughout the term of this Contract, except for law enforcement services, the City will provide the Municipal Services to all properties within the Donut Hole. The Municipal Services will be made available to the properties within the Donut Hole on a non-discriminatory basis,in accordance with the City's laws,and at the same level and scope as such Municipal Services would be provided by the City if the Donut Hole was located within the City's corporate limits: provided, however, City may charge established rates for providing water and sewer services outside the City("outside surcharge")so long as (i) such rates are charged on a non-discriminatory basis for all areas outside the City, and (ii) such -outside surcharge"shall not be increased at a greater rate than inside City charges(for customers within the City) are increased. 13. With regard to law enforcement services, the City shall file and diligently pursue an application with LAFCO to provide law enforcement services pursuant to Government Code section 56133 as soon as practical after August 12, 2003. IfLAFCO approves the City's application, the City shall thereafter provide law enforcement services to the Donut Hole consistent with the provisions of this Contract. Notwithstanding the ninety percent(90%)City and ten percent(10%)County apportionment and the one hundred percent(100%)City share of Sales Tax Revenue specified in Section 2,above,until the City is authorized by',AFC()to provide and actually does provide law enforcement services to the Donut Hole, the ninety percent (90'1/0 City and ten percent (10%) County apportionment and the one hundred percent(100%) City share of Sales Tax Revenue shall instead be eighty percent(80(1,0 to the City and twenty percent (20%) to the County. C. The method, manner and rendition of the Municipal Services, the standards of performance,the control and discipline of personnel,and all other matters relating to the furnishing and performance of the Municipal Services by the City shall remain under the exclusive direction and control of the City, but shall he provided on a nondiscriminatory basis. D. The City shall furnish and supply all labor,supervision,supplies,equipment.Vehicles and facilities necessary to provide the Municipal Services with the understanding that: (i) New development requesting water and or wastewater services from the City shall be required to pay the City's water and or wastewater capital improvement fees,including water source acquisition charges, and shall be responsible for the construction of local mains and extensions or the 5 payment of frontage charges for existing mains,pursuant to the same rates and procedures,respectively, established for new development inside the City. E. The County shall not be liable for the payment of any salaries, wages or other compensation to any City employee performing the Municipal Semices,whether full time or temporary, and no person employed by the City to provide the Municipal Services shall have any County pension, civil service or any similar status or right. The County shall not be liable for compensation or indemnity to any City employee for any injury or sickness arising out of his or her employment unless the injury results from the negligent or wrongful acts or omission of the County. F. The Municipal Services described herein are intended to supplement,and not replace,any mutual aid agreements entered into by the City for the geographical area including the Donut Hole, G. In the event of any dispute between the Parties as to the extent of the Municipal Services to be provided hereunder, the City Manager and the County Administrative Officer,or their designees, shall meet and confer in good faith in an effort to resolve the dispute, Each Party agrees to consider reasonable requests from the other Party for refinements and/or modifications to this Contract consistent with the general purposes and intent as expressed herein,provided that no amendment to this Agreement shall be binding on either Party unless both Parties agree in writing after appropriate action by the City's City Council and the County's Board of Supervisors. H. After August 12, 2003, the County shall fully cooperate with the City and immediately commence the process of adopting or amending the appropriate County ordinances, resolutions, regulations and policies as the County, in its sole discretion, determines are reasonably necessary to authorize and facilitate the City's performance of the Municipal Services, including,but not limited to the City's provision of the ancillary services of inspection, enforcement, and the collection of fees for excessive false alarm responses associated with its provision of the Municipal Services. I. Notwithstanding anything to the contrary express or implied elsewhere in this Contract, City agrees to diligently pursue termination of the Fire Protection Services Agreement,Contract No.03- 0279, with County Service Area 38 as soon as practical after August 12, 2003, In order to ensure that there are adequate fire protection services to the Donut Hole at all times,the agreement for termination of the Fire Protection Services Agreement, Contract No. 03-0279, with County Service Area 38, may provide for a suspension o f the Fire Protection Services Agreement up through December31,2003 and for reinstatement of the Fire Protection Services Agreement if the City's voters do not approve the continuation of this Contract. The City further agrees that the agreement for termination of the Fire Protection Services Agreement, Contract No. 03-0279, with County Service Area 38, will require payment by County Service Area 38 of only those fees for fire protection services provided up to and including August 11. 2003. Section 7. Real Property Taxes. Real property taxes shall be received by the City and the County in accordance with law, Section S. Notifications, All notices, statements, demands, requests, consents, approvals, authorizations, terminations, appointments or designations hereunder by any Party shall be in writing 6 and shall be sufficiently given and served upon the other Party personally, or if sent by United States certified mail, return receipt requested, postage prepaid and addressed as follows: County: County Administrative Officer County of San Bernardino 385 North Arrowhead Avenue, 5th Floor San Bernardino, CA 92415-0120 City: City Manager City of Redlands P.O. Box 30u5 Redlands, CA 92373 Either party may change its address by giving written notice thereof to the other in accordance with the provisions of this Section. Notices shall be deemed, for all purposes, to have been given on the date of personal service or three (3) days following the deposit of the same in the custody of the United States Postal Service. Section 9. Authority to Execute.The persons executing this Contract warrant and represent that they have the authority to execute this Contract in behalf of their respective Parties and that such authority has been confirmed by resolution of the Parties in accordance with Government Code section 55704.5. Section 10. Term, A. This Contract shall commence on the date it has been approved by both the City and County, and terminate on December 31, 2003, unless the qualified voters of the City approve the Initiative Ordinance substantially in the form attached hereto as Exhibit "B" entitled "Initiative Ordinance"and consent to the extension of the term of this Contract beyond December 31, 2003, B. If the qualified voters of the City approve the Initiative Ordinance substantially in the form attached hereto as Exhibit "B" entitled"Initiative Ordinance"and consent to the extension of this Contract beyond December 31, 2003, this Contract shall continue in full force and effect until the later of: (a)the date on which all of the property comprising the Donut Hole has become annexed to the City; or, (b)August 12, 2028, at which time this Contract shall terminate. Section 11. Default, If either the City or the County fails to perform any of its obligations as provided in this Contract, and if the nonperforming party fails to cure its failure within thirty (30)days after notice of non-performance is given by the other Party, then the nonperforming party will be in default and the other party will have all of the remedies which are available to it at law or in equity, specifically including but not limited to the right to suspend any otherwise required payments of Sales Tax Revenue to the nonperforming party; provided, however; that if the failure to perform cannot reasonably be cured within such thirty (30) day period, then the nonperforming party will not be in 7 B. The County agrees to indemnify and hold harmless the City and its authorized officers, employees, agents and volunteers from any and all claims, actions, losses, damages, and or liability arising from County's and its authorized officers', employees', agents' and volunteers' acts, errors, or omissions and for any costs or expenses incurred by City on account of any claim therefore, except where such indemnification is prohibited by law. Section 18. Independent Capacity, A. The City,its elected officials,officers,employees and agents are acting in an independent capacity during the term of this Contract and not as officers, employees or agents of the County, nor shall they have authority to contract for or in behalf of, or incur obligations in behalf of, the County. B. The County, its elected officials, officers, employees and agents are acting in an independent capacity during the term of this Contract and not as officers, employees or agents of the City, nor shall they have authority to contract for or in behalf of, or incur obligations in behalf of, the City. Section 19. No Joint Venture. The Parties to this Contract renounce the existence of any form ofjoint Venture or partnership between them and agree that nothing contained in this Contract or in any document executed in connection with this Contract shall be construed as making the Parties joint venturers or partners. Section 20. Exhibits. All exhibits mentioned in this Contract are attached hereto and incorporated herein by reference. Section 21. Incorporation of Recitals. The Recitals are incorporated in this Contract. Section 22. Sections and Captions. All references to "sections" refer to Sections of this Contract,unless otherwise stated. Captions are for convenience of reference only and do not constitute a portion of this Contract. Section 23. Further Assurances, Each of the Parties shall,upon the request of the other Party, take such other actions,including but not limited to those actions described in subsection OR hereof,and sign such other documents(in recordable form,if required) as may be reasonably required to effectuate the terms of this Contract. Section 24. Consent. Whenever consent or approval of any of the Parties is required under this Contract or to implement its provisions, that Party shall not unreasonably withhold or delay such consent or approval. Section 25. Entire AsreententlAmendntent. This Contract contains the entire agreement and understanding between the Parties with respect to the subject matter hereof. There are no oral understandings, terms, conditions or promises, and neither of the Parties has relied upon any representation, express or implied, not contained in this Contract, This Contract may be amended, in writing,at any time by the mutual consent of the Parties. No amendment shall have any force or effect 9 unless prepared and executed in writing and approved by City's City Council and County's Board of Supervisors, Section 26. No Presumption Regarding Drafter, The Parties acknowledge and agree that the tenns and provisions of this Contract have been negotiated and discussed between the Parties and their attorneys,and this Contract reflects their mutual agreement regarding the same. Because of the nature of such negotiations and discussions, it would be inappropriate to deem any party to be the drafter of this Contract, and therefore no presumption for or against validity, or as to any interpretation hereof, based upon the identify of the drafter shall be applicable in interpreting or enforcing this Contract Section 27. Signatories. In accordance with the requirements of Government Code section 55705, each of the persons signing this Contract in behalf of its respective Party is authorized, by resolution, to do so. I // I/ // // / it I/ 11) if IN WITNESS WHEREOF, the Parties have executed this Agreement as of the dates below. COUNTY C' SAN BERN,i. DINO CITY OF REDLANDS • By: 41111f Dennis Hansberger, Chai, an Karl N. Haws, Mayor Board of Supervisors Date: August 12, 2003 Date: August 5, 2003 ATTEST: LoiTie Poyzer, (i C.erk ,. ,/ SIGNED AND CERTIFIED THAT A COPY APPROVED AS TO FORM OF THIS DOCUMENT HAS BEEN DELIVERED TO THE CHAIRMAN DANIEL J. MCHUGH, City Attorney OF THE BOARD J. RENEE014A841:1 /,''''::b- .. ,. Clerk of ili€$6417.0 ot$dpeivisors 'cHugh _ Data: August 6, 2003 By : ,WX/ AUtz:1:::t.,24YoDate l:•',o _ ,,..... APPROVED AS TO LEGAL FORM ALAN K. MARKS, County Counsel San Bernardino County, California Rex A. Himosley,-chfelEteptiLY }-7I-, . ,. . Date 11 EXHIBIT 'GA" DONUT HOLE DESCRIPTION LAFCO 2867 DETACHMENT FROM THE SPHERE OF INFLUENCE OF THE CITY OF RED DS (DON ,T HOLE) REVISION NO.2„, 5 OCTOBER 2000 PORTIONS OF SECTION 16,AND 21,T1S, R3W,SEEM;MORE PARTICULARLY DESCRIBED AS FOLLOWS: FOLLOWING E `VARIOUS COURSES OF THE EXISTING REDLANDS CrTY LIMITS.BEGINNING AT THE INTERSECTION OF THE WEST BOUNDARY LINE OF THEant OF RED DS AS ORIGINALLY INCORPORATED, SAID LINE ALSO BEING THE INTERSECTION OF THE NORTH AND SOUTH QUARTER SECTION LINE OF SECTION 21, T1S, R3W, SSBM, WITH THE EAST AND WEST QUARTER SECTION LINE OF SAID SECTION 21: (COURSE#1)THENCE WESTERLY ALONG THE NORTH SECTION LINE OF SAID ySECTION 21 AND CONT'INLNING ALONG THE EAST AND WEST QUARTER SECTION LINE OF SECTION 20,718,R3W, SEW,N N LI'38'37"'"W 267329 FEET; • (COURSE EV THENCE WESTERLY ALONG THE EAST AND WEST QUARTER SECTION LINE OF SAID SECTION 21 AND CONTINUING ALONG THE NORTH SECTION LINE OF SECTION 20,_T15, R3W, SEEM, S 89.27"54`W 4,03221 FEET TO ITS INTERSECTION W THE SOUTHERLY PROLONGATION OF THE EAST LINE OF LOTS 8 AND 3 OF BLOCK(I,OP THE HENRY L.WILLIAMS TRACT,AS RECORDED IN BOOK 11, PAGE 17 IN THE OFFICE OF THE COUNTY RECORDER,COUNTY OF SAN BERNARIDINO,,STATE OF CALIFORNIA,LAST s,*;'?SAID INTERSECTION BEING 1,320 FEET MORE OR LESS EAST, OF THE INTERSECTION 'OF THE CENTERLINES OF'LUGONIA AVENUE AND CALIFORNIA STREET; (COURSE NIU)THENCE N 00.34'48" W 1,305.60 FEET ALONG SAID EAST LINE OF LOTS B AND 3 AND °THE PROLONGATION THEREOF,-. TO ITS INTERSECTION WITH THE CENTERLINE OF AL. : Q AVENUE; • (COURSE #4) THENCE N $9'4936" w 1,316.68 FEET ALONG THE CENTERLINE OF ALMOND AVENUE 1,31E:66` FEET TO ITS INTERSECTION WITH THE CENTERLINE OF CALIFORNIA (COURSE 18) THENCE N owl8"4r W, 3,959.99 FEET ALONG THE CENTERLINE OF CALIFORNIA STREET TC ITS INTERSECTION WITH THE CENTERLINE OF PALMETTO AVENUE (COURSE #e) THENCE ,S 8917"49 E'2;64564 FEET ALONG THE CENTERLINE OF PALMETTO AVENUE TO ITS INTERSECTION WITH THE CENTERLINE OF NEVADA , STREET; (COURSE F THENCE N con4165* E 1,320. 2 FEET ALONG THE CENTERLINE OF NEVADA STREET TO ITS INTERSECTION WITH mg SOUTH LINE OF PINE STREET(VACATED); • (COURSE #8) THENCE S 89"27"45" E 1,318.13 FEET ALONG THE SOUTH LINE OF PINE STREET(VACATED) TO ITS INTERSECTION WITH THE SOUTHERLY PROLONGATION-OF . THE EAST LINE OF LOT 3, BLOCK I OF BROWNS SUBDIVISION OF THE HENRY L WILLIAMSTRACT AS RECORDED ED IN'BOOR 8 OF MAPS, PAGE 96, IN THE OFFICE OF THE COUMY RECORDER,COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA; EXHIBIT "A" DONUT HO I DESCRIPTION Pag e 1 of S 9 j° Z 6ed N0IldIt1DS3G 310H inNOO 1181H 3; :woes'mem 'SU 'Lt N01133S 40 31 1'1 H1140N 3H1 V1 1334 eL'tbi. M N AVM 40 3LV19 01YS ONOW 3QN3H1. (1 #3S f103) !0'6 AVMHOIH 31Y1S 2104`diN :,411V3-4C 33LYLS 3H1.40 AVM 40 meta 3H101 1334 £Z'Z9Z 3.ZZ,ZSZL N 33N3H.1(SW 3V11103) 1334 59'6O M.Z ,E0.L9 s tami'b'1 vi s 34140 )4NVS Kmos 3141 40 44lla 314,1 4O 143a'If10-IS 2141 ONMAY31 30N3141 (&t%3St'f1O3 4 L 33C1 1:13ainoHScovs sNOTst°3.6 r Q / =v+i N 3ON3H.. #39U1700) ) r 34 g hat O. 0 4l0HS CIVS NO ` •-so.9t.99 N N ( M# a� Ui700) :1334 Z93a1 *Nscrinws alts aN0lb"'31.92.50..9 N 30N31-11,( #3V111O0.) 1.1234 96$I." f O11S S ONO1Y .0Z.0049 N 33N3111az#3V1110.0.) 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(COURSE *28) THENCE $ 89°14.55" E 347,32 FEET ALONG THE NORTH LINE OF sEcTioNS 17 AND 16, T1S, R3W.ESSK TO THE EAST LINE 08 THE WEST HALF OF SAID SECTION 18; (COURSE #29) THENCE S 00°3945 E 3.891.74 ALONG THE EAST LINE OF THE WEST HALF OF SAID SECTION 16 TO ITS INTERSECTION WITH THE CENTERLINE OF PIONEER AVENUE . THENCE WESTERLY ALONG THE CENTERLINE OF PIONEER AVENUE THE FOLLOWING COURSES AND DISTANCES: . . (COURSE#30) THENCE ALONG A NON-TANGENT CURVE, CONCAVE NORTH-EASTERLY, HAVING A RADIUS OF 500.00 FEET,A RADIAL BEARING SEARS S 04.5853*W. THROUGH A CENTRAL ANGLE OF 16°45'68",A DISTANCE OF 137.69 FEET; . . (COURSE#31J THENCE TANGENT TO SAID CURVE N 89'14*09"W 207.19 FEET; (COURSE 11,3 ) THENCE ALONG A TANGENT CURVE, CONCAVE SOUTHWESTERLY. HAVING K RADIUS OF 1,100.00 FEET, THROUGH A CENTRAL ANGLE OF 20041#66* A . DISTANCE OF 397.39 FEET; (COURSE 4433)THENCE TANGENT TO SAID CURVE 14 E956*04-W 12.19 FEET TO A POINT 1,944.8 FEET EAST OF THE WEST LINE OF SECTION 19,TiS, RMN,SBBM; (COURSE$34)THENCE LEAVING SAID CENTERIJNE,S ocr3211*W 746.36 FEET; (COURSE A35)THENCE WEST 490.90 FEET: (COURSE 036) THENCE S 01°18'16" W 735.79 FEET TO THE CENTERLINE OF SAN BER14ARDINO AVENUE: (COURSE #37) THENCE S 89°554r E 1,267.87 FEET ALONG THE CENTERLINE OF SAN BERNARDINO AVENUE To ITS INTERSECTION WITH THE NORTH AND SOUTH QUARTER LINE OF SECTION 21.115,R3W.SEIONt . . . , (COURSE A38)THENCE S 00°191r E 2,607.71 ALONG LAST SAID QUARTER LINE TO THE POINT OF BEGINNING. CONTAINS 1104 ACRES MORE OR LESS. . . AS SHOWN ON EXHIBIT 71-ATTACHED HERETO AND MADE A PART HERE OF. "471 lAtYpiee' Ft 0 4P4i& T." 0 E • HORN JR -.LS.7159 § 44. 0... EXPIRES 12/31/200 .4 . - 1 7/00 * F34,124142 * ,,,f). „Alt ,_14. Ittlk. EXHIBIT "A" DONUT HOLE DESCRIPTION Page 3 of 5 0167 171 1 0000 051 09 0292 054 13 0292 072 01 0••• 0292 041 05 0000 0292 051 10 0000 0292 054 14 01$•` 0292 072 02 ••1 0 0292 041 08 0000 0292 051 11 0000 0292 054 16 0000 0292 072 04 0000 0292 041 09 0**•: 0292 051 12 0000 0292 05417 0000 0292 07210 •••'• 0292 041 10 014• 0292 051 13 0000 0292 055 01 0000 0292 072 11 ••4•' 0292 041 11 0000 0292 051 14 0000 0292 055 02 0000 0292 081 01 •••• 0292 041 12 0000 0292 051 15 0000 0292 055 03 01*0 0292 081 020000 0292 041 15'0000 0292051 17 0000 0292 055 04 0 • '2 081 03 9 0292 041 16 0••.• 0292 051 19 0000 0292 055 05 0000 •o <)0» 081 04 •••• 0292 041 17 0000 0292 051 20 0000 0292 055 05 0000 1.0#2 081 06 •••' 0292 041 18 0000 0292 051 21 0000 0292 055 07 0000 2 081 07 ";• 0292 041 19 0000 0292 052 01 0000 0292 055 08 0000 0292 081 08 •••,• 0292 041 34 0000 0292 052 03 0000 0292 055 09 0000 •P•'2 081 12 "_4 0292 041 35 0000 0292 052 04 0000 0292 05510 0000 0. 081 14 *is* 0292 042 01 0000 0292 052 06 0000 0292 071 06 0001 0292 081 15 •••, 0292 042 02 0000 0292 052 08 0000 0292 071 10 0000 0292 081 18 •0•• 0292 042 07 0000 0292 052 10 0000 0292 071 15 0000 0292 081 19 f.•4 r 0292 042 08 0000 0292 05211 0000 0292 071 18 0000 0292 081 22 0000 0292 043 01 0000 0292 052 12 0000 0292 071`21 0000..,_ '.*......... .0292 0-1230000-- 0292 .2 -0292 04302 0000 0292 052 13 0000 0292 071 22 0000 0292 081 24 0000 0292 043 03 0000 0292 052 15 00 0292 071 23 0000 0292 081 26 0000 0292 043 04 0000 0292 052 16 0000 0292 071 24 0000 0292 081 270000 0292 043 05 0000 0292 053 03 0000 0292 071 25 0 • a2 081 28 0000 0292 043 06 0000 0292 053 04 0000 0292 071 28 0000 0252 081 29 0000 0292 043 07 0000 0292 053 08 0000 0292 07127 0000 0292081 32 0000 0292 043 08 0000 0292 053 12 0000 0292071 28 0000 0292 043 09 0000 0292 053 13 0000 0292 07129 0000 0292 043 10 0000 0292 054 02 0000 0292 071 30 0000 0292 043 11 0*** 0292 054 03 0000 0292071 33 0000 0292 051 01 0000 0292 054 04 0000 0292 071 350000 • 0292 051 02 0000 0292 054 05 0000 0292 071 38 0000 0292 051 03 0000 0292 054 08 0000 0292071 39 01300 0292 051 04 0000 0292 054 07 0000 0292071 40 0000 0292 051 05 0000 0292 054 08 0000 0292 071 41 0000 0292 051 06 0000 0292 054 09 0000 0292 071 43 0000 0292 051 07 0000 0292 054'10 0000 0292 07144 0000 0292 051 08 0000 0292 054 12 0000 0292 07145 0000 ASSESSOR'S PARCEL NUMBERS IN DONUT HOLE EXHIBIT "A" DONUT HOLE DESCRIPTION Page 4 of 5 1 1 ii.„ v �" j, F !1 t1 * k g 41 (\\'44'''''t 4 k'4.'4.+ ++4.+1 4.t,+4+ 0 _ • 1 I Vey _ -. - , - - . i olir - 6 ° 1 g i •.r"5.it art ''^t.44 y 1.1 .3 � j , S 0 4 . ° I Z -L. I Fl ,+ S Q ., .n e.s+"+ i iHF . -e- • _ w I; w-wrr+1 1 . ii, xus A2N 3 1 '..+4.-: ems w a� i i .c allS 04Ss..�a:-. r l ort • '- ; a z gy 2 1 :)....16tio.: .,,, . ..r4,,,,,,,,., < ; ## # „,,, ' ' , ... .51 r.,,.Y:ra.�.�vw•+i"'2:szsas=""sar.. a .g- 1,..........1, d.. t«,p ., -- EXHIBIT t"A'1 DONUT HOLE DESCRIPTION Page S of S Exhibit B To City/County Sales and Use Tax Contract ORDINANCE NO. 2550 AN INITIATIVE ORDINANCE OF THE PEOPLE OF THE CITY OF REDLANI)S CONSENTING TO THE CITY'S EXTENSION BEYOND DECEMBER 31, 2003, OF THE TERM OF THE CONTRACT WITH THE COUNTY OF SAN BERNARDINO TO APPORTION SALES AND USE TAX REVENUE GENERATED BY BUSINESSES LOCATED WITHIN THE UNINCORPORATED AREA KNOWN AS THE "DONUT HOLE" AND FOR THE CITY'S PROVISION OF MUNICIPAL SERVICES TO THE "DONUT HOLE" AND APPROVING AN AMENDMENT TO THE CITY'S GENERAL PLAN RELATING TO DEVE.L.OPMENT WITHIN THE CITY'S PLANNING AREA AND SPHERE OF INFLUENCE WHEREAS, in 1998, the voters of California approved Proposition No. 11 which amended Article XIII, Section 29 of the California Constitution to allow cities and counties to enter into contracts to apportion sales and use tax revenue_ by ordinance or resolution, upon a two-thirds vote of approval by the governing body of each jurisdiction that is a party to the contract; and WHEREAS, the State Legislature amended Government Code sections 55700 et seq, to provide the option for approval of contracts to apportion sales and use tax revenue consistent with the provisions of the California Constitution; and WHEREAS, the County and City have agreed to an apportionment of sales and use tax revenue generated from businesses in the Donut Hole, irrespective of their jurisdictional boundaries and subsequent reorganizations of property within the Donut Hole; and WHEREAS, the contract for apportionment of sales and use tax revenue and the provision of municipal services has been approved by ordinance or resolution, and by a two- thirds vote of the City Council of the City of Redlands ("this City Council") and a two-thirds vote of the Board of Supervisors of the County of San Bernardino; and WHEREAS, this City Council has provided in its contract with the County of San Bernardino that the benefit of receiving the sales and use tax revenue generated by businesses located in the unincorporated area of the Donut Hole, in exchange for the City's provision of municipal services, will terminate on December 31, 2003, unless an extension of the term of the contract beyond December 31, 2003, is consented to by a majority vote of the qualified voters of the City of Redlands; and WHEREAS, this City Council has submitted this Initiative Ordinance to the qualified voters of the City of Redlands for their consent to the extension beyond the date of December 31, 2003, of the tenu of the contract for apportionment of sales and use tax revenue and the City's provision of municipal services within the Donut Hole; and WHEREAS, Section 1A.20 entitled "Principle Two" of the "Principles of Managed Development" element of the Redlands General Plan establishes the policy that "Development within the planning area and sphere of influence of the City of Redlands shall conform to development standards within the City;" and WHEREAS, Section 1A.20 contains two implementing subsections relating to development within the City's planning area and sphere of influence entitled "Development Agreements" and the "Extension of Public Utilities Outside the City Limits;" and WHEREAS, given that the boundaries of the City's sphere of influence and its planning area are, as a matter of City policy, kept coterminous; and WHEREAS,because Government Code section 65865(b) specifically provides that development agreements may only be entered into for unincorporated property when that unincorporated property is also within a city's sphere of influence; and WHEREAS,based upon the foregoing, the City has reasonably determined that both the literal reading of Section 1A.20 and its practical application under law leads to the conclusion that Section 1A.20 and its implementing subsections apply only to properties within both the City's planning area and its sphere of influence; and WHEREAS, this City Council believes it is in the City's and its citizensbest interests to amend Section 1A.20 to make explicit (to the extent of any ambiguity)that Section 1A.20 and its implementing subsections apply to development within both the City's planning area and its sphere of influence, and not to other development outside of the City's boundaries; and WHEREAS, the amendment to Section 1A.20 of Redlands General Plan set forth herein is not, in the City Council's opinion, a substantive change but rather a clarification of existing law and that approval of this Initiative Ordinance shall be ratification of all prior City actions taken consistent with the herein described interpretation of Section 1A.20 and its subsections which together are entitled "Principle Two" of the "Principles of Managed Development" element of the Redlands General Plan; THE PEOPLE OF THE CITY OF REDLANDS HEREBY ORDAIN AS FOLLOWS: Section 1. The people of the City of Redlands hereby consent to the extension beyond December 31, 2003, of the term of the contract with the County of San Bernardino for the apportionment of sales and use tax revenue generated by businesses located within the unincorporated area commonly known as the Donut Hole and the provision of municipal ser ices in the Donut Hole, in the form attached hereto as Exhibit "A." Section 2. The provisions of this Initiative Ordinance, the contract which is attached to this Initiative Ordinance as Exhibit "A," and all of the contract's provisions may be amended or repealed by the Redlands City Council. Section 3. Section 1 A.20 entitled "Principle Two" of the "Principles of Managed Development" element of the Redlands General Plan is hereby deleted in its entirety and readopted to read as follows: "I A.20 PRINCIPLE TWO (Guiding Policy)- Development within both the planning area and sphere of influence of the City of Redlands shall conform to development standards Within the City. (a) Development Agreements (Implementing Policy) - All development agreements entered into by the City and developers pursuant to California Government Code Sections 65864 et seq. after the effective date of the initiative ordinance adding this Section IA.20 to the Redlands General Plan shall conform to the policies contained in this General Plan. (b) Extension of Public Utilities (Implementing Policy) - No extension of City provided utility services within both the planning area and sphere of influence of the City shall occur until such areas are properly annexed to the City, except that utility services may be extended to areas within both the planning area and sphere of influence of the City without prior annexation if all of the following conditions are met: I. The area to be served is not contiguous to the City of Redlands; and 2. The City and the land owner have entered into a properly recorded and binding pre-annexation agreement establishing covenants running with the land that assure full compliance with all development standards of the City of Redlands, payment of all capital improvement and other development fees which would be applicable to the property if it Were within the City limits at the time of extension of such services, and immediate processing of annexation to the City at the City's request; and 3. The land owner agrees as a condition of extension of utility facilities to serve the proposed development to pay the full cost of such extension of such utility facilities." Section 4, This Initiative Ordinance shall be considered adopted upon the date that the vote on this Initiative Ordinance is declared by the Redlands City Council, and this Initiative Ordinance shall take effect ten days after that date. 3 FOR COUNTY'USE ONLY w 5t New Vendor Code Dept. Contract Number Change C + �wsc� , Cancel County Department Dept. Orgn, Contractor's License No. Board of Supervisors County Department Contract Representative Telephone Total Contract Amount County of San Bernardino Jim Foster, Chief of Staff 387-4855 F A S Contract Type Revenue 0 Encumbered U Unencumbered 0 Other: CONTRACT TRANSMITTAL If-not encumbered or revenue contract type,provide reason:_ Commodity Code Contract Start Date Contract End Date Original Amount Amendment Amount Aug. 12, 003See contract for details Fund Dept, Organization Appr. Cbj'Rev Source CRCJPROJ/JOB No. Amount AAA FAD FAD 8295 Fund Dept: Organization Appr. •bj/Rev Source ORCtPROJ/JOB No, Amount t Fund Dept, Organization Appr, Obj/Rev Source GRC/PROJIJOB No, Amount i Project Name Estimated Payment Total by Fiscal Year Contract with City of c Redlands for apportionment FyAmount VD FY Amount UD of sales and use tax rev. and the provision of Municipal services CONTRACTOR City of Redlands Federal ID No.or Social Security No. Contractor's Representative City Manager Address P. 0. Box 3005, Redlands, CA 92373 Phone, Nature of Contract: (Briefly describe the general terms of the contract) Contract with the City of Redlands for apportionment of Sales and Use Tax revenue and the provision of municipal services within the unincorporated area commonly known as the"Donut Hole". This contract establishes a sales and use tax sharing agreement between the County of San Bernardino and the City of Redlands, generally the contract allocates 90% of sales and use to to the City and 10%to the County. In return for the tax allocation agreement, the City commits to provide. fire protection, law enforcement, water supply, and wastewater management services. The term of the contract shall commence on thedate it has been approved by both the City and the County, and terminate on December 31, 2003, hiltless the'qualified voters of the City approve an,Initiative Ordinance and consent to the extension of the term of the contract beyond December 31, 260 3. If the,qualified voters of the City approve the Initiative Ordinance and consent to the extension beyond December 11, 2603, the contract shall continue in full force and effect until the laterof,t t the date on wh ch all of the property comprising the Donut Hole has become annexed to the City; or (b)August 12, 2028, at which time the contract ishati terminate. (Attach this transmittal to all contracts not preparedon h 'Standard and Contract"form) Approved as to Lege --( ign r b pojrok ': R vt wed a t 'Contract Compliance Presented to 805 for Signature lex Hinesto ,: M►., Cltnnis Har sb jgery Chair torr of Board of Supr County Counse$ o w' Department d Date Aug.5. 003 Date Date Aug 5,2003 Auditor/Controller-Recorder Use Only 0 Contract Database 0 FAS Input Date^ Keyed Sy, - REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS OF SAN BERNARDINO COUNTY, CALIFORNIA AND RECORD OF ACTION August 12, 2003 Agree. No. 03-085(i & Resolution No. 2003-338 FROM: DENNIS HANSBERGER, Chairman Board of Supervisors SUBJECT: RESOLUTION APPROVING CONTRACT WITH THE CITY OF REDLANDS APPORTIONING SALES AND USE TAX REVENUE AND PROVISION OF MUNICIPAL SERVICES, AND RELATED ACTIONS RECOMMENDATION: 1. ADOPT resolution approving contract with the City of Redlands for apportionment of Sales and Use Tax revenue and the provision of municipal services within the unincorporated area commonly known as the "Donut Hole". (Four votes required,i 2. ADOPT the findings related to CEQA compliance as detailed below under background information. 3. FILE a Notice of Determination, BACKGROUND INFORMATION: It is proposed that the City of Redlands (City) and the County of San Bernardino (County) enter into an agreement on the apportionment of Sales and Use Tax revenue and the provision of Municipal Services within the unincorporated area commonly known as the "Donut Hole" (approximately 1,000 acres). This unincorporated area of the County is completely surrounded by the City of Redlands, Government Code sections 55700 et seq. authorize cities and counties to approve contracts for the apportionment of sales and use tax revenue by ordinance or resolution, with the approval by a two-thirds vote of the legislative bodies of the parties to the contract, consistent with the provisions of Article XIII, Section 29 of the California Constitution. The City and the County are using resolutions to approve this contract. The contract will establish a sales and use tax sharing agreement between the County and the City. Regardless of future jurisdiction, the contract allocates 90% of sales and use tax revenue to the City and 10% to the County. This allocation applies to all businesses within the Donut Hole generating sales or use taxes as of August 12, 2003. This allocation remains the same for 20 years, at which time 100% of the taxes go to the °City, cc: Dennis Ilansberger,Chairman Record of Action of the Board of Supervisors a ae rn e n t aResolution Agree, No. 03-0856 &Resolution No 2003-338 nd City of Redlands City Council wagregment and Resolution Auditor-Walker wfagreement and APPROVED tilCYARtf OF SUPERVISORS Resolution COUNTY`OF SA4BERNARDINO IDS w agreement and Resolution ED"PSG-Goss MOTION secOrsto AYE AYE MOVE AYE Special DistrictsMarzullo ft -1 2 ro 4 5 County I'irelIills J. RENE*BASTIAt02.1-ERK.OF TI BOARD County Coutisel-flinesley ei LUSD-Sciott BY A-F.1 CAO-Cole DATE...12: August 20 File wagreement and Resolution Rev 07/97 ITEM 052 RESOLUTION APPROVING CONTRACT WITH THE CITY OF REDLANDS APPORTIONING SALES AND USE TAX REVENUE AND PROVISION OF MUNICIPAL SERVICES, AND RELATED ACTIONS August 12, 2003 Page 2 of 3 For businesses that begin generating taxes after August 12, 2003 the 90%/10% tax allocation (City/County) continues for 20 years from the date of issuance of the certificate of occupancy for the business. After 20 years 100% of the taxes go to the City. At the end of 25 years from the approval date of the contract 100% of sales tax goes to the City. regardless of the date the new businesses begin operations. In return for the tax allocation agreement, the City commits to provide fire protection, law enforcement, water supply, and wastewater management services. Presently, the City is authorized through the Local Agency Formation Commission (LAFC0) to provide fire, water, and wastewater service, The City will submit a request to LAFCO to allow for the delivery of law enforcement services. The City has been providing water and wastewater services to the Donut Hole for decades, and fire protection service to the Donut Hole since January 1, 2003. Until the City is authorized by LAFC0 to provide and actually does provide law enforcement services to the Donut Hole, the City shall receive 80% of the sales and use tax, with the County receiving 20% of such taxes. The term of the contract shall commence on the date it has been approved by both the City and the County, and terminate on December 31, 2003, unless the qualified voters of the City approve an Initiative Ordinance and consent to the extension of the term of the contract beyond December 31, 2003. If the qualified voters of the City approve the Initiative Ordinance and consent to the extension beyond December 31, 2003, the contract shall continue in full force and effect until the later of: (a) the date on which all of the property comprising the Donut Hole has become annexed to the City; or (b) August 12, 2028, at which time the contract shall terminate. On August 5, 2003, acting as lead agency under the California Environmental Quality Act (CEQA), the City of Redlands approved an Addendum to the City of Redlands General Plan Master Environmental Assessment and Final Environmental Impact Report (MEA/Final EIR) as the environmental determination for the proposed contract. The Addendum is on file with the Clerk of the Board. Staff recommends that the Board rely on the analysis in the City's Addendum and adopt the following findings as a CEQA responsible agency: FINDINGS: 1. The potential environmental effects of the proposed contract have been evaluated in an Addendum to the City of Redlands General Plan Master Environmental Assessment and Final Environmental Impact Report (MEA/Final EIR) (SCH #91022067) approved by the Redlands City Council on August 5, 2003. The Addendum was prepared in accordance with Section 15164 of the State CEQA Guidelines, including a finding that none of the conditions described in Section 15162 of the State CEQA Guidelines requiring preparation of a subsequent EIR have occurred, The Addendum concludes that all potentially significant effects of the proposed contract have been analyzed adequately and will be avoided or mitigated pursuant to the previously certified MEA/Final EIR. RESOLUTION APPROVING CONTRACT WITH THE CITY OF REDLANDS APPORTIONING SALES AND USE TAX REVENUE AND PROVISION OF MUNICIPAL SERVICES, AND RELATED ACTIONS August 12,2003 Page 3 of 3 2. The addendum to the City of Redlands General Plan MEA/Final EIR approved by the City on August 5, 2003 is adequate for the County's use, acting as a CEQA Responsible Agency, in its consideration of the proposed contract. REVIEW BY OTHERS: This item was reviewed by County Counsel (Rex Hinesley, Chief Deputy County Counsel) on August 5, 2003, the Department of Special Districts (Emil Marzullo, Director) on August 5, 2003, County Fire (Peter Hills, Fire Chief) on August 5, 2003, Land Use Services Department (Randy Scott, Division Chief) on August 5, 2003, and the County Administrative Office (Patricia M. Cole, Administrative Analyst Ill) on August 4, 2003. This contract was approved by the City of Redlands City Council on August 5, 2003. FINANCIAL IMPACT: It is projected that the County will receive an estimated $6,000,000, from sales and use taxes, over the term of this proposed agreement. This revenue will continue to be received by the County's General Fund even if the area is completely annexed by the City of Redlands. SUPERVISORIAL DISTRICT(S): 3rd PRESENTER: Dennis Hansberger, Chairman, Board of Supervisors (3874855). RESOLUTION NO, 2003-338 2 RESOLUTION OF THE BOARD OF SUPERVISORS OF THE COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, APPROVING A CONTRACT WITH THE CITY OF REDLANDS FOR.THE APPORTIONMENT OF SALES AND USE TAX REVENUE AND THE PROVISION OF CITY MUNICIPAL SERVICES WITHIN THE DONUT HOLE AND MAKING CERTAIN DETERMINATIONS RELATED THERETO 6 7 8 On Tuesday, August 12, 2003, on motion of Supervisor Aguiar, duly seconded by 9 Supervisor Postmus, and carried, the following resolution is adopted: 10 WHEREAS, Article XIII, Section 29 of the California Constitution authorizes cities and 12 counties to enter into contracts for the apportionment of sales and use tax revenue, by 13 ordinance or resolution, with the approval by a two-thirds vote of the legislative bodies of the 14 parties to the contract; and 15 16 WHEREAS, Government Code sections 55700 et seq. authorize cities and counties to 17 approve contracts for the apportionment of sales and use tax revenue consistent with the 18 provisions of Article XIII Section 29 of the California Constitution; and 19 20 WHEREAS, the City of Redlands' ("City") staff has presented to its City Council verbal 21 and written testimony and evidence that supports the finding that consumers residing in the 22 City will be shopping at businesses located in the Donut Hole; and 23 24 WHEREAS, the City staff has assembled data demonstrating that the City will incur 25 costs in connection with its obligations to provide fire protection and law enforcement`, 26 services to properties within the Donut Hole and that as a result of these obligations, equity 27 28 Page 1 1 requires that the sales and use taxes generated by businesses within the Donut Hole should 2 be apportioned to ensure that the City is, at least, reimbursed for such costs; and 3 4 WHEREAS, Government Code sections 55700 et seq. also require the legislative 5 bodies of any city and county proposing to enter into a contract to apportion sales and use 6 tax revenue to make certain determinations by resolution; 7 SECTION 1, The Board of Supervisors of the County of San Bernardino hereby finds 9 and determines: (1) That businesses have been established, and will be established, within 10 the unincorporated area of the County commonly known as the "Donut Hole" and that 11 consumers residing in the City are, and will be purchasing, and that consumers residing in 12 the County will be purchasing tangible personal property from such businesses; and, (2) 13 That equity requires that the sales and use tax revenue received by the City and the County 14 from such businesses be apportioned between the City and the County for the benefit of their 15 respective citizens. 16 17 SECTION 2. The Board of Supervisors of the County of San Bernardino hereby 18 resolves and orders: (1) That the contract with the City of Redlands for the apportionment of 19 sales and use tax revenue and the provision of City municipal services within the Donut Hole 20 in the form attached hereto as Exhibit "A" is approved; and, (2) That the Chairman of the 21 Board of Supervisors of the County of San Bernardino is authorized to execute, on behalf of 22 the County, the contract with the City of Redlands for the apportionment of such sales and 23 use tax revenue in the form attached hereto as Exhibit "A". 24 25 /11/ f 26 27 / 28 Page 2 1 PASSED AND ADOPTED by the Board of Supervisors of San Bernardino County, 2 State of California,, by the following vote. 3 AYES; Supervisors:Postmus, Biar e, A uiar, Eaves, Han berg r 4 NOES: Supervisors:None 5 ABSENT: Supervisors:None 6 STATE OF CALIFORNIA ) 7 COUNTY OF SAN BERNARDINO } 8 I J. Renee Bastian, Clerk of the Board of Supervisors of San Bernardino County, California, hereby certify the foregoing to be a full, true and corre ,t „pf the record of the action as the same appears in the Official Minutes of said Board at its meeting of August 12, 2003. 10 J. Renee Bastian Clerk of the Board of SuperviS0 . ' e; 11 of San Bernard o � 12 ? ` BY 13b,•r 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Page 3 CONTRACT FOR THE APPORTIONMENT OF SALES AND USE FAX REVENUE AND THE PROVISION OF MUNICIPAL SERVICES wiTHIN THE UNINCORPORATED AREA COMMONLY KNOWN AS THE DONUT HOLE This Contract for the apportionment of sales and use tax MN/C.111C generated by businesses located within the Donut Hole and for the provision of municipal services to the Donut Hole(the "Contract")is made by and between the County of San Bernardino, a political subdivision of the State of California (the "County") and the City of Redlands, a municipal corporation situated in the County of San Bernardino (the "City"), who are together sometimes referred to herein as the "Parties." RECITALS WHEREAS,the geographic area known as the Donut Hole(more fully described in Exhibit"A" entitled"Donut Hole Description")is located in the unincorporated area of the County but is completely surrounded on all sides by the City; and WHEREAS, both the County and the City have an interest in developing, promoting and maximizing the beneficial use of the Donut Hole as an emerging regional business center; and WHEREAS, businesses seeking locations in the Donut Hole should not become entangled in disputes betiiveen the County and the City over the receipt of sales and use tax revenue,the provision of municipal services and other jurisdictional issues; and WHEREAS,the County and the City desire to apportion the sales and use tax revenue generated by businesses located in the Donut Hole generally on the basis of ninety percent(907c)of such sales and use tax revenue being provided to the City and ten percent(10 )of such sales and use tax revenue being provided to the County: with the apportionment formula changing under certain circumstances specified in this Contract to provide one hundred percent (100%)of the sales and use tax revenue generated by businesses in the Donut Hole to the City: and WHEREAS, in 1998. the voters of California approved Proposition No. 11 which amended Article XIII.Section 29 of the California Constitution to allow cities and counties to enter into contracts to apportion sales and use tax revenue. by ordinance or resolution, and upon approval by a two-thirds vote of the legislative bodies of the parties to the contract: and WHEREAS.the State Legislature amended Government Code sections 55700 etq! to provide cities and counties the option to approve contracts apportioning sales and use tax revenue consistent with the provisions of Article XIII. Section 29 of the California Constitution: and WHEREAS,it is the intent of the Parties to approve this Contract for apportionment of sales and use tax revenue and the provision of municipal services by resolution, and by a two-thirds vote of the City Council of the City and a two-thirds vote of the Board of Supervisors of the County in accordance with Government Code section 55704.5; and EXHUHT 4,„ WHEREAS, the Parties have determined, by resolution, that (1) businesses have been established, and will be established, within the Donut I4ole and that consumers residing in the City are, and will be,purchasing tangible personal property from such businesses; (2)that equity requires that the sales and use tax revenue received by the County and the City from such businesses he apportioned between the City and the County for the benefit of their respective citizens;and(3)that the Chairman of the Board of Supervisors of the County and the Mayor of the City of Redlands he authorized to execute this Contract; and 1A/HEREAS, the County and City desire to apportion the sales and use tax revenue generated from businesses in the Donut Hole in the manner specified in this Contract irrespective of present or future jurisdictional boundaries and subsequent reorganizations of property: and WHEREAS,Government Code sections 54980 et seq„authorize the legislative body of any local agency to contract with any other local agency for the performance by the latter, for valuable consideration, of any municipal services or functions within the territory of the former; and WHEREAS, the Local Agency Formation Commission of the County of San Bernardino (HLAECO“) has approved the City's provision of fire protection, water and wastewater services to the Donut Hole and the City is presently providing such services to the Donut Hole; and WHEREAS,in addition to fire protection, water and wastewater services,upon approval by the LAFCO, the City is willing to provide the additional service of law enforcement to the Donut Hole in consideration of the County's agreement to apportion sales and use tax revenue; and WHEREAS.in reliance upon the City's commitment to provide municipal services to the County in consideration of the County's apportionment of sales and use tax revenue, the County is refraining, and will continue to refrain, from pursuing viable opportunities to finance and construct infrastructure in the Donut Hole to provide water and wastewater services therein, and to fund and expand its law enforcement and fire protection operations to provide necessary services to the Donut Hole: and WHEREAS,in reliance upon the County's commitment to apportion sales and use tax revenue in the manner specified herein,the City is making:and will continue to make,capital expenditures to obtain equipment and construct faci lities necessary to provide municipal services on a timely basis to the Donut Bole; and WHEREAS. it is the intent of the City, after approval of this Contract by the Redlands City Council and the County's Board of Supervisors to submit an Initiative Ordinance to the qualified voters of the City at the general municipal election scheduled for November 4,2003, and request the qualified voters of the City to consent to the extension of the term of this Contract beyond December 31, 2003; and WHEREAS,City has issued a permit for the connection to the City water and wastewater system Of approximately 50 acres of land known as Phase I of the Citrus Plaza project. and all water and wastewater fees have been paid and water meters have been issued and installed in connection with such property: accordingly Phase I of the Citrus Plaza project has a poor vested right to obtain Water and 2 wastewater service from the City which vested right will continue whether or not the term of this Contract is extended by the voters of the City in accordance with the provisions hereof; and WI IEREAS„ it is the intent and understanding of the Parties that this Contract shall remain operative after December 31, 2003, only if the qualified voters of the City at the general municipal election scheduled for November 4, 2003, consent to the extension of the term of this Contract beyond December 31, 2003. NOW,TI1EREFORE, in consideration of the foregoing recitals,the mutual promises contained herein,and for such other good and valuable consideration the receipt of which is hereby acknowledged by the Parties, the County of San Bernardino and the City of Redlands agree as follows: AGREEMENT Section 1. Definitions. Unless the context otherwise requires, the terms defined in this section shall, for all purposes of this Contract, have the meanings specified herein. A. "Days" is defined as calendar days. B. "Donut Hole" is defined as that unincorporated area of the County of San Bernardino described in Exhibit "A" entitled "Donut Hole Description." C. "Fiscal Year" is defined as July 1 through June 30. D. "Municipal Services" is defined as fire protection services,law enforcement services(not including animal control services or code enforcement services),water and wastewater services.and any related inspection and other types of ancillary services (not including plan checking) customarily undertaken by the City departments which provide fire protection, law enforcement, water and wastewater services. E. ''Sales Tax Revenue" is defined as the amount of sales and use tax disbursed by the State Board of Equalization to the County or the City under authority granted to the County or the City pursuant to the Bradley-Burns Uniform Local Sales and Use Tax Lass (Revenue and Taxation Code sections 7200 et ss.a.). Section 2. Apportionment of Sales Tax Revenue, From and after August 12. 2003, the County and the City shall apportion Sales Tax ReVenue as follows: A. For each individual business generating Sales Tax Revenue in the Donut hole on August 12, 2003. the City shall receive ninety percent (90e4) of such Sales fax Revenue and the County shall receive ten percent(10(70 of such Sales Tax Revenue for a period of twenty(20)years commencing on August 12. 2003 At the end of such twenty (20) year period for each such business, on August 12_ 2023,the apportionment formula shall change to provide that the City shall receive one hundred percent (100%) of the Sales Tax Revenue thereafter. B, For each individual business not generating Sales Tax RCVenLie in the Donut Hole on August 12. 2003,and which begins generating Sales Fax Revenue after August 12,2003, the City shall receive ninety percent(90%)of such Sales Tax Revenue and the County shall receive ten percent(10%) of such Sales Tax Revenue for a period of twenty(20)years commencing on the date of issuance of the certificate of occupancy for the business generating Sales Tax Revenue, At the end of such twenty(20) year period for each such business,the apportionment formula shall change to provide that the City shall receive one hundred percent (100%) of the Sales Tax Revenue thereafter. C. Notwithstanding the provisions of Subsection B, above, and regardless of the number of years that have passed since the date of issuance of a certificate of occupancy bra business generating Sales Tax Revenue within the Donut Hole,commencing on August 12, 2028(twenty-five years after the effective date of this Contract) for every business generating Sales Tax Revetwe in the Donut Hole at that time, and every business generating Sales Tax Revenue thereafter, the City shall receive one hundred percent (100%) of such Sales Tax Revenue until the tefininatiOn of this Contract pursuant to Section 10 hereof. D. If the Bradley-Bums Uniform Local Sales and Use Tax Law(Revenue and Taxation Code sections 7200 et seq.)is modified or repealed after July 1,2003,or if the amounts of Sales Tax Revenue or the method of disbursement of Sales Tax Revenue is changed after July 1, 2003, such that another form of tax,revenue or other money(such as,but not limited to,real property taxes,income taxes,excise taxes or monies in the Education Revenue Augmentation Fund) is substituted in total or partial replacement of Sales Tax Revenue, such tax,revenue or other money shall be apportioned between the Parties consistent with the apportionment formula established in this Contract. Further,the County and the City shall fully cooperate with one another to amend this Contract as necessary or appropriate to facilitate the apportionment of such substituted tax, revenue or money in accordance with the apportionment, formula established herein so that the intent of this Contract can be attained. E. The differing percentage of Sales Tax Revenue received by the Parties under the various provisions of this Contract shall be based upon the date that such Sales fax Revenue is generated and not on the date the State Board of Equalization disburses such Sales Tax Revenue to the Parties. Section 3, Apportionment Payments, The County shall pay to the City the appropriate percentage (as specified in Section 2 above or Section 6 below) of Sales Tax Revenue received by the County from businesses in the Donut Hole within sixty(60) days of receipt of such revenue from the State Board of Equalization. If the City annexes some or all of the Donut hole, the City shall pay to the County the appropriate percentage (as specific in Section 2 above or Section 6 below) of Sales Tax Revenue received by the City from businesses annexed within sixty(60)days of receipt of such revenue from the State Board of Equalization. Section 4. ,Accounting, The County shall provide the City with a Statement of Account upon request of the City. The Statement of Account shall include the following: Sales Tax Revenue for the Donut Hole received by the County to date for the current Fiscal Year; Sales Tax Revenue for the Donut Hole reeniVed by the County during the preceding Fiscal Year; Sales fax Revenue for the Donut Hole disbursed pursuant to this Contract by the County to the City during the preceding Fiscal Year; and the 4 total of all Sales fax Revenue disbursed pursuant to this Contract by the County to the City from August 12,2003. If the City annexes some or all of the Donut Hole,the City shall provide the same information to the County upon request. Section 5. Administration Costs. The County's Auditor/Controller/Recorder may deduct from amounts paid to the City pursuant to Section 3 above the Auditor/Controller/Recorder's reasonable cost of administering the provisions of this Contract. if the City annexes some or all of the Donut Hole, the City's Finance Department may deduct from amounts paid to the County pursuant to Section 3 above the Finance Department's reasonable cost of administering the provisions of this Contract. Section 6, Provision of Municipal Services. A. In consideration of the County's agreement to apportion Sales Tax Revenue generated by businesses located within the Donut Hole with the City, commencing on August 12, 2003 and throughout the term of this Contract, except for law enforcement services, the City will provide the Municipal Services to all properties within the Donut Hole. The Municipal Services will he made available to the properties within the Donut Hole on a non-discriminatory basis,in accordance with the City's laws,and at the same level and scope as such Municipal Services would be provided by the City if the Donut Hole was located within the City's corporate limits: provided, however, City may charge established rates for providing water and sewer services outside the City("outside surcharge")so long as (i) such rates are charged on a non-discriminatmy basis for all areas outside the City, and (ii) such "outside surcharge"shall not be increased at a greater rate than inside City charges(for customers within the City) are increased. B. With regard to law enforcement services, the City shall file and diligently pursue an application with LAFC0 to provide law enforcement services pursuant to Government Code section 56133 as soon as practical after August 12, 2003. If LAFC0 approves the City's application, the City shall thereafter provide law enforcement services to the Donut Hole consistent with the provisions of this Contract. Notwithstanding the ninety percent(90%)City and ten percent(10%)County apportionment and the one hundred percent(100%)City share of Sales Tax Revenue specified in Section 2,above,until the City is authorized by LAFC0 to provide and actually does provide law enforcement services to the Donut Hole, the ninety percent(90%) City and ten percent (10%) County apportionment and the one hundred percent (1009 )City share of Sales Tax Revenue shall instead be eighty percent (80%) to the City and twenty percent (20 ) to the County. C. The method, manner and rendition of the Municipal Services, the standards of performance,the control and discipline of personnel.and all other matters relating to the furnishing and performance of the Municipal Services by the City shall remain under the exclusive direction and control of the City, but shall he provided on a nondiscriminatory basis, D. The City shall furnish and supply all labor,supervision,supplies.equipment.vehicles and facilities necessary to provide the Municipal Services with the understanding that: (i) New development requesting water and/or wastewater services from the City shall he required to pay the City's water and/or wastewater capital improvement recs.including water source 5 acquisition charges, and shall be responsible for the construction of local mains and extensions or the payment of frontage charges for existing mains,pursuant to the same rates and procedures,respectively, established for neve development inside the City. F. The County shall not be liable for the payment of any salaries, wages or other compensation to any City employee performing the Municipal Services,whether lull time or temporary, and no person employed by the City to provide the Municipal Services shall have any County pension, civil service or any similar status or right. The County shall not he liable for compensation or indemnity to any City employee for any injury or sickness arising out of his or her employment unless the injury results from the negligent or wrongful acts or omission of the County. F. The Municipal Services described herein are intended to supplement,and not replace,any mutual aid agreements entered into by the City for the geographical area including the Donut Hole. 0, In the event of any dispute between the Parties as to the extent of the Municipal Services to he provided hereunder, the City Manager and the County Administrative Officer, or their designees, shall meet and confer in good faith in an effort to resolve the dispute. Each Party agrees to consider reasonable requests from the other Party for refinements and/or modifications to this Contract consistent with the general purposes and intent as expressed herein,provided that no amendment to this Agreement shall he binding on either Party unless both Parties agree in writing after appropriate action by the City's City Council and the County's Board of Supervisors. H. After August 12. 2003, the County shall fully cooperate with the City and iinmediately commence the process of adopting or amending the appropriate County ordinances, resolutions, regulations and policies as the County, in its sole discretion, determines are reasonably necessary to authorize and facilitate the City's performance of the Municipal Services, including, but not limited to the City's provision of the ancillary services of inspection, enforcement, and the collection of fees for excessive false alarm responses associated with its provision of the Municipal Services. I. Notwithstanding anything to the contrary express or implied elsewhere in this Contract, City agrees to diligently pursue termination of the Fire Protection Services Agreement,Contract No.03- 0279, with County Service Area 38 as soon as practical after August 12, 2003. In order to ensure that there are adequate fire protection services to the Donut Hole at all times, the agreement for termination of the Fire Protection Services Agreement, Contract No. 03-0279, with County Service Area 38, may provide for a suspension of the Fire Protection Services Agreement up through December 31, 2003 and for reinstatement of the Fire Protection Services Agreement if the City's voters do not approve the continuation of this Contract. The City further agrees that the agreement for termination of the Fire Protection Services Agreement, Contract No. 03-0279. with County Service Area 38, will require payment by Counts Service Area 38 of only those fees for fire protection services provided up to and including August 11, 2003. Section 7, Real Property'Taxes, Real property taxes shall be received by the City and the County in accordance with law, Section 8 Notifications, All notices, statements, demands, requests,consents, approvals, 6 authorizations,terminations,appointments or designations hereunder by any Party shall be in writing and shall he sufficiently given and served upon the other Party personally,or if sent by United States certified mail, return receipt requested, postage prepaid and addressed as follows: County: County Administrative Officer County of San Bernardino 385 North Arrowhead Avenue, 5th Floor San Bernardino, CA 92415-0120 City: City Manager City of Redlands P.O, Box 3005 Redlands, CA 92373 Either party may change its address by giving written notice thereof to the other in accordance with the provisions of this Section, Notices shall he deemed, for all purposes, to have been given on the date of personal service or three (3)days following the deposit of the same in the custody of the United States Postal Service. Section 9% Authority to Execute.The persons executing this Contract warrant and represent that they have the authority to execute this Contract in behalf of their respective Parties and that such authority has been confirmed by resolution of the Parties in accordance with Government Code section 55704,5, Section 10. Term. A. This Contract shall commence on the date it has been approved by both the City and County, and terminate on December 31, 2003, unless the qualified voters of the City approve the Initiative Ordinance substantially in the form attached hereto as Exhibit "B" entitled -Initiative Ordinance" and consent to the extension of the term of this Contract beyond December 31, 2003. B. If the qualified voters of the City approve the Initiative Ordinance substantially in the form attached hereto as Exhibit "B" entitled Initiative Ordinance"and consent to the extension of this Contract beyond December 31, 2003, this Contract shall continue in full force and effect until the later of: (a)the date on which all of the property comprising the Donut Flole has become annexed to the City, or, (b) August 12, 2028, at which time this Contract shall terminate, Section II Default, If either the City or the Counts fails to perform any of its obligations as provided in this Contract, and if the nonperforming party fails to cure its failure within thirty(30)days after notice of non-performance is given by the other Party, then the nonperforming party will be in default and the other party will have all of the remedies which are available to it at law or in equity, specifically including but not limited to the right to suspend any otherwise required payments of Sales Tax Revenue to the nonperforming party; provided, hoWeyer, that if the failure to perform cannot 7 reasonably be cured within such thirty (30) day period, then the nonperforming party will not be in default of this Contract if it commences to cure its nonperformance within such 30 day period and thereafter diligently and in good faith prosecutes such cure to completion. Without limiting the effect of the foregoing, the Parties acknowledge and agree that the subject matter of this Contract is unique and that money damages may be inadequate to compensate the non-defaulting party and therefore, at. the election of the non-defaulting party, this Contract may be specifically enforced. Section 12. Waiver, Any waiver by one of the Parties of any breach of any one or more of the terms of this Contract shall not be construed to be a waiver of any subsequent or other term hereof. Failure on the part of either Party to require exact, full and complete compliance with any term of this Contract by the other Party shall not be construed as in any manner changing the terms of this Contract, nor stopping the enforcement thereof. Section 13, Severability. If any term,provision,covenant.or condition of this Contract is held by a court of competent jurisdiction to be invalid, void or unenforceable,the remaining provisions of this Contract shall nevertheless continue in full force without being impaired or invalidated in any way to the extent that the intent of the Parties for entering into this Contract can be implemented. Section 14, Governing Law. This Contract shall be governed by and construed in accordance with the laws of the State of California. This Contract was entered into and is intended to be performed in San Bernardino County,California, Venue for any action brought by either of the Parties shall be the Superior Court of California, County of San Bernardino, Central District. Each of the Parties hereby waives any rule of law or rule of court that would allow it to request or demand a change in venue. If any action concerning this Contract is brought by any third party,the Parties shall use their best efforts to obtain a change in venue to the Central District of San Bernardino County. Section 15. Attorney Fees and Costs. If any legal action is instituted to enforce any of the Parties' rights hereunder, each of the Parties shall bear its own costs and attorneys' fees. regardless of who is the prevailing party. This paragraph shall not apply to those costs and attorneys' fees directly arising from a third-party legal action against a party hereto and payable under Section 17, entitled ' Indernni fi cation." Section 16. Jury Trial Waiver. The Parties hereby waive their respective rights to trial by jury and agree to accept trial by judge alone for any cause of action,claim,counterclaim or cross-complaint in any action, proceeding and/or hearing brought by either of the Parties against the other on any matter arising out of,or in any way connected with,this Contract,the relationship of the Parties or any claim or injury or damage,or the enforcement of any remedy under any law,statute,or regulation,emergency or otherwise, now or hereafter in effect. Section 17. Indemnification, A. The City agrees to indemnify and hold harmless the County and its authorized officers, employees, agents and volunteers from any and all claims. actions, losses, damages. and/or liability arising from City's and its authorized officers', employees', agents` and volimteersl acts. errors, or omissions and for any costs or expenses incurred by County on account of any claim therefore. except 8 where such indemnification is prohibited by law. B. The County agrees to indemnify arid hold harmless the City and its authorized officers, employees, agents and volunteers from any and all claims. actions, losses, damages, and/or liability arising from County's and its authorized officers', employees', agents' and volunteers' acts, errors, or omissions and for an costs or expenses incurred by City on account of any claim therefore, except where such indemnification is prohibited by law. Section 18. Independent Cvaci ty. A. The City, its elected officials,officers,employees and agents are acting in an independent capacity during the term of this Contract and not as officers,employees or agents of the County,nor shall they have authority to contract for or in behalf of, or incur obligations in behalf of, the County. B. The County, its elected officials, officers, employees and agents arc acting in an independent capacity during the term of this Contract and not as officers, employees or agents of the City, nor shall they have authority to contract for or in behalf of, or incur obligations in behalf of, the City. Section 19, No Joint Venture. The Parties to this Contract renounce the existence of any form of joint venture or partnership between them and agree that nothing contained in this Contract or in any document executed in connection with this Contract shall be construed as making the Parties joint venturers or partners. Section 20. Exhibits. All exhibits mentioned in this Contract are attached hereto and incorporated herein by reference. Section 21. Incorporation of Recitals. The Recitals are incorporated in this Contract. Section 22. Sections and Captions. All references to "sections" refer to Sections of this Contract,unless otherwise stated. Captions are for convenience of reference only and do not constitute a portion of this Contract. Section 23. Further Assurances. Each of the Parties shall, upon the request of the other Party. take such other actions,including but not limited to those actions described in subsection 61-1 hereof,and sign such other documents tin recordable form, if required)as may be reasonably required to effectuate the terms of this Contract, Section 24. Consent. Whenever consent or approval of any of the Parties is required under this Contract or to implement its provisions, that Party shall not unreasonably withhold or delay such consent or approval. Section 25. Entire Agreement/Amendment. This Contract contains the entire agreement and understanding between the Parties with respect to the subject matter hereof. There are no oral understandings, terms. conditions or promises, and neither of the Parties has relied upon any representation, express or implied, not contained in this Contract. This Contract may he amended. in writing, at any time by the mutual consent of the Parties, No amendment shall have any force or effect 9 unless prepared and executed in writing and approved by City's City Council and County's Board of Supervisors. Section 26. No Presumption Regarding Drafter. The Parties acknoMedgc and agree that the terms and provisions of this Contract have been negotiated and discussed between the Parties and their attorneys,and this Contract reflects their mutual agreement regarding the same. Because of the nature of such negotiations and discussions. it would be inappropriate to deem any party to he the drafter of this Contract, and therefore no presumption for or against validity, or as to any interpretation hereof, based upon the identify of the drafter shall be applicable in interpreting or enforcing this Contract. Section 27. Signatories. In accordance with the requirements of Government Code section 55705, each of the persons signing this Contract in behalf of its respective Party is authorized, by resolution, to do so. IN WITNESS WHEREOF. the Parties have executed this Contract as of the dates below. COUNTY OF SAN BERNARDINO CITY OF REDLANDS By: By: Dennis Hansherger, Chairman Karl N. Haws. Mayor Board of Supervisors Date: Date: SIGNED AND CERTIFIED THAT A ATTEST COPY OF THIS DOCUMENT HAS BEEN DELIVERED TO THE CHAIRMAN OF THE BOARD J. RENEE BASTIAN Clerk of the Board of Supervisors Lorne Poyzer, City Clerk By: Date:_ Deputy Date: APPROVED AS TO LEGAL FORM APPROVED AS TO FORM ALAN K. MARKS, County Counsel DANIEL J, MCHUGH, City Attorney San Bernardino County, California By: By Rex A. Ilinesley, Chief Deputy Daniel J. McHugh Date- Date: 10 \l W BUSINESS Donut Hole Sales and Use fax Exchange Contract - Community Developnient Director Shaw presented a proposed contract with the County of San Bernardino to apportion sales and use tax revenue generated b businesses located within. the unincorporated area known as the "Donut Hole" in return for the City providing certain municipal services to the area. if the City Council makes the decision to enter into the contract, it will then submit an initiative ordinance (Ordinance No. 2550) to the citizens of Redlands for the votersconsent to an extension of the term of the contract beyond December 31. 2003. The Mitiatii,c ordinance also asks the citizens of Redlands to approve a specific General Plan text amendment which clarifies and confirms existing City taw relating to future development within both the City's Planning Area and Sphere of Influence. Community Development Director Shaw revickVed the environmental assessment and the contents of the contract in depth. Toni Dodson, our environmental consultant, reviewed the addendum for the contract which was prepared in accordance with the current California Environmental Quality Act (CEQA) statute and guidelines. Community Development Director Shaw concluded the presentation reporting the action needed. Cit Clerk Poyzer presented Resolution No. 6186, which calls and gives notice of the holding of a Special Municipal Election on Tuesday, November 4, 2003, relating to this matter; Resolution No. 6187, directing the City Attorney to prepare an impartial analysis for the initiative ordinance; and Resolution No. 6188, setting priorities for filing a written argument regarding the city measure. Speaking at length against the proposal were The Redlands Association members Tex Moore, Jerry Biggs, and Bill Cunningham. Louis Fletcher, a property owner in the Donut Hole, urged the City Council to approve this agreement as he felt it was time to put this issue to rest. Tom Dotson further explained the CEQA review. Each Cotmcilinember expressed their viewpoint and support of this proposal and then took the following actions: Environmental Assessment - Councilmentber Gilbreath moved to approve the Addendum to the City of Redlands General Plan Master Environmental Assessment Final E'ER for the project consisting of the proposed contract to apportion sales tax revenue and provide municipal services and the proposed initiative ordinance relating to the contract and a General Plan amendment clarifying Principle 1A.20 of the General Plan. Motion seconded by Councilmember Harrison and carried unanimously by a roll call vote. Resolution No. 6189 - Contract Approval - Councilmenther Gilbreath moved to approve Resolution No. 6189, a resolution of the City Council of the City of Redlands approving a contract with the County of San Bernardino for the apportionment of sales and use tax revenue and the provision of City municipal services within the Donut llole and making certain determinations related thereto. Motion seconded by Councilniember Harrison and carried unanimously by a roll call Vote. August 3,2003. Page 2 Resolution No. 6186 - Special Municipal Election - Councilmember Gilbreath moved to adopt Resolution No. 6186, a resolution of the City Council of the City of Redlands, California, calling and giving notice of the holding of a Special Municipal Election on Tuesday, November 4, 2003, relating to Ordinance No. 2550, an initiative ordinance of the People of the City of Redlands consenting to the City's extension beyond December 31, 2003, of the term of the contract with the County of San Bernardino to apportion sales and use tax revenue generated by businesses located within the unincorporated area known as the "Donut Hole" and for the City's provision of municipal services to the "Donut Hole" and approving an amendment to the City's General Plan relating to development within the City's planning area and sphere of influence, and amending Resolution No. 6170. Motion seconded by Councilmember Peppier and carried unanimously by a roll call vote. Resolution No. 6187 - Impartial Analysis - Couneilmember Gilbreath moved to adopt Resolution No, 6187, a resolution of the City Council of the City of Redlands directing the City Attorney to prepare an impartial analysis for Ordinance No. 2550, an initiative ordinance of the People of the City of Redlands consenting to the City's extension beyond December 31, 2003, of the term of the contract with the County of San Bernardino to apportion sales and use tax revenue generated by businesses located within the unincorporated area known as the "Donut Hole" and for the City's provision of municipal services to the "Donut Hole" and approving an amendment to the City's General Plan relating to development within the City's planning area and sphere of influence. Motion seconded by Councilmember Peppier and carried unanimously by a roll call vote. Resolution No. 6188 - Ballot Arguments Priority - City Clerk Poyzer explained the process setting priorities if more than one written argument is submitted. A packet of information regarding filing deadlines and regulations for the submission of arguments in favor of or against a ballot measure was provided. Following discussion, Councilmember Gilbreath moved to designate Councilmember Peppier and Councilmember Haws to prepared an argument in favor of the ballot measure. Motion seconded by Councilmember Harrison and carried unanimously by a roll call vote. Councilmember Gilbreath moved to adopt Resolution No. 6188, a resolution of the City Council of the City of Redlands setting priorities for filing a written argument regarding a City measure. Motion seconded by Councilmember Harrison and carried unanimously by a roll call vote. CONSENT CALENDAR Minutes - On motion of Councilmember Peppier, seconded by Councilmember Gilbreath, the minutes of the regular meeting of July 15, 2003, were, by a roll call vote, approved as submitted. Voting Delegate - League of California Cities - On motion of Couneilmember Peppier, seconded by Councilmember Gilbreath, the City Council, by a roll call August 5,2003 Page 3