HomeMy WebLinkAboutResolution 91-175 06/17/1991,Ex,•
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FZesolution No. 91-175 N.C.S.
of the City of Petaluma, California
2 RESOLUTION APPROVING AGREEMENT
3 WITH COUNTY OF SONOMA
4 FOR COLLECTION AND DISBURSEMENT OF
5 REAL PROPERTY TRANSFER TAX
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7 WI-IEItEAS, on November 5, 1990, the City Council adopted
8 Ordinance 1830 NCS which increased the City Real Property Transfer Tax, and;
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10 WHEREAS, the City desires the County to collect the Real Property
11 Transfer Tax by the County Recorder in the same manner as the County Documentary
12 Transfer Tax; and
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14 WHEREAS, the County has determined there is an additional cost to
15 collect the City tax and desires an agreement to collect the City tax;
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17 N®W, TIIEItEFOItE BE IT ItESOI,VED that the City Council
18 approves that certain agreement between the City of Petaluma and the County of
19 Sonoma, as attached Exhibit A, to collect and disburse Real Property Transfer Tax.
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21 The Mayor or City Manager is authorized to sign the agreement and the
22 City Clerk is authorized to attest its execution.
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Under the power and authority conferred upon this Council by the Charter of said City.
REFERENCE: I hereby certify the foregoing Resolution was introduced and adopted by the _ Appr ved as to
Council of the City of Petaluma at a (Regular) (M~bti#~8~~~~~meeting;~'"~ i~
on the .....1.7511..._....... day of ..........s~UI1Q ....................................... 19_..`~~, by th~ ,~ -_
following vote:
', y Attorne
AYES: Read, Davis, Woolsey, Sobel, Nelson, Vice Mayor Cavanagh
NQES : 0
ABSENT:
ATTEST:
CA 10-85
Ma r Vi e Mayor
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Res. No..y~,~...~f~~N.C.S.
AG'RE'EMENT FOR COLLECTION
OF ItEAI; PitOPERTY TRAM~SFER TAX
This agreement, dated 1991, is between the City of
Petaluma ("CITY") and the County of Sonoma ("COUNTY").
RECITALS
A. CITY. has adopted a .Real Property Transfer Tax ("tax") and desires that
COUNTY'S Recorder collect the tax on behalf of-CITY.
AGREEMENT
The parties agree as follows:'
1. Collection.
COUNTY Recorder shall collect CITY's Real Property Transfer Tax
adopted by City Ordinance No. 1830 N.C.S. The Recorder is to collect and administer the
tax as follows:
(a) The tax rate does vary. between COUNTY and CITY and therefore
any person presenting a document, for recording is to provide separate
totals of the tax for COUNTY and the CITY to the COUNTY
Recorder:
(b) Recorder's processing of documents and collection of the tax amount
' is to be conducted in the same manner as for the COUNTY
documentary transfer tax.
(c) All proper fees and taxes are to be paid before any document for
which it reasonably appears a tax is owed, is recorded.
(d) COUNTY will notify CITY, by sending a copy of the deed to CITY, if
it. appears to the Recorder that the CITY tax has not been paid, has
been underpaid or looks irregular: Nothing in this agreement,
however, imposes any obligation on COUNTY to discover such
nonpayment, underpayment or irnegularities.
(e) ~ Recorder shall determine which transactions are exempt from the tax
:as required by state law or city ordinance. Recorder shall not. be
liable to CITY for erroneous determinations.
(f) CITY is to collect on any bad debts on CITY'S tax.
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2. Remittance to CITY.
COUNTY Recorder shall remit to CITY the tax collected on behalf of CITY
on a monthly basis. within 20 days of the end of the month. COUNTY is to keep separate
accounts on proceeds from CITY's tax. COUNTY's records are to be available to CITY at
reasonable times and upon reasonable notice by CITY.
The COUNTY Recorder shall provide a monthly report which details the
. documents recorded the previous month by date recorded; Recorder number, name,
assessor's parcel number, amount of CITY tax, and amount of COUNTY tax.
3. Rate of Compensation.
For the first term of this agreement, the CITY .shall compensate COUNTY
for collecting the tax by payment. of Two Dollars ($2.00) per recorded document for which
the CITY tax is paid. The COUNTY charge for subsequent terms shall be a fixed amount
per document.. The COUNTY shall notify the CITY 30 days prior to the beginning of any
subsequent terms of the fixed. amount to be charged per document for the term. CITY
shall pay charges, when invoiced, within thirty days.
In addition, CITY is to share cone-time charge on a prorated cost basis with
any other participating cities the costs related to developing a data processing system for
COUNTY to administer this agreement The CITY ;shall pay the prorata share based on
the percentage of CITY documents recorded in fiscal year 1989-90 relating to the CITY to
the total .documents recorded for all cities that -have adopted a separate documentary
transfer tax
4. Payment by CITY.
COUNTY shall bill CITY monthly and CITY shall pay COUNTY within
thirty days of billing those costs described in paragraph 3: COUNTY may offset sums owed
by CLTY pursuant to paragaph 3 of this agreement' against payments made per paragraph
2 of this agreement
5. .Indemnity
CITY shall indemnify and hold harmless: COUNTY and its agents, officers
and employees.=for any~liability arising from CITY's imposition or COUNTY's collection of
the. tax or refusal to record a document for non-payment of the tax, irrespective of
COUNTY'S alleged. misconduct or negligence; whether active or passive.
6. Termination.
Either party ,may terminate this agreement upon ninety days' written notice
to the other party:
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~. Term.
The term of this agreement shall be -for one year commencing November 5,
1990 and shall. be automatically extended for additional one-year periods subject to
termination as provided in paragraph 6.
8. Notices and Paym n .
All notices and payments to the parties shall be addressed as follows:
CITY: David W. Spilman, Finance Director
' City of Petaluma
Post Office Box 61
Petaluma, California 94953
COUNTY: Recorder
County of Sonoma
Post Office Box 6124
Santa Rosa, California 95406
CITY OF PETALUMA
Rv
City Manager
ATTEST:
COUNTY OF SONOIv1A
By
Chairman
ATTEST:
City Clerk
APPROVED AS TO FORM:
City Attorney
APPROVED:
Risk Manager
APPROVED:
By
County Clerk. and ex-officio Clerk of
the Board of Supervisors
c: \word5 \agrmts.doc
Finance Director fmk\6 / 13 /91
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'H ~°U"rte ®FFIC.EOF000NTVAD~MINISTRAT®R
~r~ y~~ C COUNTY OF SONOMA
•~•••~~~ ~ 5 575 ADMINISTRA.TIDN DRIVE-ROOM 1D4A TOM SCHOPFLIN
gcRlcuEiuRE SANTA ROSA. CACI-FORtJIA 95403-2888 COUNTY ADMINISTRATOR
LNDUSiRY ~ TELEPHONE 17D7~ sz7-za31 ~ MIKE CHRYSTAL
RECREgiION
.w ASST COUNTY ADMINISTRATOR
January 16, 1991
T0: Finance Directors of:
Cotati
Petaluma
Santa Rosa
Sebastopol
FROM.: Gary Kovacovich,
County Administrator's Office~f~
SUBJECT: City Documentary Transfer .Tax Changes anal Temporary
Credits Against .City Criminal Justice Administration (Jail
Booking) Fees
At the January 2, .1991 meeting
Tax administration, you asked for
against Jail Booking fees to assist
agreements with the County for
Tax. The following is in response
summarized the other items whi<
concerning. Documentary Transfer
a brief summary of the credits
your processing of the city
collection of Documentary Transfer
to your request and I have also
:h were discussed.
A. In order to reduce the initial impact of th,e FY 90-91 State
Budget and State legislative changes on cities, the Board of
Supervisors provided. a one-time temporary credit equal to 50~ of
each City's .FY 90-91 Property Tax Administration Fee authorizied
by State Senate Bill 2557 against each City's. FY 90-91 Criminal
Just-ice Administration (Jail .Booking) Fees, This credit expires on
June 30, 1991 and applies to FY 90-91 only.
B. The Board also establi hed policy in the event that any city
changes its Documentary Transfer Tax rate as follows:
1. Pursuant. to~ State Law, the city would relinquish its current 50~
share ($0.55 per $1,000 of va°lue) of the County Documentary
Transfer Tax rate of $1.10 per $1,000.
2. 'The County will provide a temporary credit equal to the city's
former 50~ s°hare ~.of the County Documentary Transfer Tax against
the city share of:
a. Jail Booking, Fees ~ .
b. ~ Recorder Administrative Fees
The temporary credit is authorized to .any eligible city from
November I, 199.0 through October 31, 1.991 . and terminates at that
time. The credit is limited to 100!-% of the City's Jail Booking Fee
obligation from November 1, 1990 through October 31, 1991.
3. Approval of an agreement between. the City and County is
required in order for the Coun"ty to collect ,the Documentary
Transfer Taxes for the Gi•ty.
The City shall "pay the County for the 'costs related to development
of a data pr,oces ing system ~ for County to ~ implement th.e
agreement on an equal cost basis. These costs will be pro-rated to
the cities based on the number of docume;rits involving
Documentary Transfer flax ,during FY 89-90. Those costs and the
percentage shares to each .City are noted in paragraph G ,below.
C. Sampling of Major T.a.xabl,e Recordings
Agreed that the Recorder would review the. October, 1990
Documentary Transfer Tax documen s which were for $1 million of
value or more. The intent is to determine if any Documentary
Transfer Tax amount`s were incorrectly ~ assigned to a city rather
than the county unincorporated area or vice versa.
D. Agreed that the Recorder's Administrative Fee would be $2 per
document, rather than. a `percentage of the tax. The. $2 per
document is subject to the_ the R.ecorder's ,review of the October
transactions. If the Recorder finds less than 75:% accuracy, the
County will determine. the cost of pre-screening/pre-valuation of all
documents over $1 million of value based on the latest available
information from the Assessor in order to reduce the ~ error factor.
Note: ,The Chiefi Deputy Recorder found 3 transactions of over $1
.million- of value in October-, 1990 and had the Assistant Assessor .
verify the locations. All ~3 tr.-ansactions were correct.. Based on this
survey, we ar:e not going to pre-screen the documents and will
audit an .ap,proximate 10% sample of all transactions as previously
agreed.
This would resu; t ;in a $2..00 Recorder's Admin:i'strative Fee, subject
to Board of . Superv7sor's approval of the fee.
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E. Agreed that the Re.corder's calculation of the estimated
Recorder's Administrative fee would be fin alized with a brief
descrip.tiott ar-d sent to the cities above- as support for the charges.
F. ~ Agreed that -the cities should :be billed for Recorder's
Administrati e costs after the temporary credits against: Jail
Booking fees expire rather than offsetting the City Documentary
Transfer Tax revenues -by the amount of the Recorder
Administrative fees.
G. The cities agreed ghat the cost of the computer service
improvements required .for the Recorder tro collect the city
Documentary Transfer Tax would be allocated to each of the four
cities based on. .the FY 89-90 number of documents processed by the
Recorder involving Documentary Transfer Tax.
This is to be a one-ti'rne cost, estimated at $15,584.40 including
administrative time and will be billed to the ,.cities during FY 90-91.
The number of documents processed in FY 89-90 which had
Documentary Transfer .Tax calculations and .percentages for each
city's share of the necessary computer service improvements are.
listed below:
City Number of Per"'cent.
Documents of Total
Cotati 567 4.76
Petaluma 3,119 2.6.19
Santa Rosa 7,939 66.66 •
Sebastopol 284 2.39
Total 11,909 100.00
H. City Confirmation
.Prior to taking this f.ee to the Board of Supervisors for approval, we
would Like to have the cities confirm that they are in agreement
with the understandin°g as identified in this memorandum. Please
respond by January 22, .1991 so that the fee can be placed on the
Board of Supervisors' ~ agenda for approval.
cc: Bernice Peterson, County Recorder
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STARTUP ;COST S _ : _
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DATA PROCESSING _ , - .
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PROGRAMPAING
- _. - 96 hours @ $45
- 4,320.00
COMPUTER TIME ~ : .: 6 hours @ $600 ~ 9,600:00
MEETINGSlfESTINGIDOCUMENTATION 45 hours @ $45', 2,025:00
IV,EW REPORTS:.(Average Complexity] 50 hours, @ 45 ~ ~ ~- 2,250:00. , ~ •
How often rune
SUPPLIES ,
NEW STAAAP$ - 301.65
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AQMINISTRATIV
E TIME
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RECORDER -
25 ,hours @ 33:.55
898:75
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-CHIEF DEPUTY RECORDER. 50'hours @, 25:51 _ ~ J,275.5_0_
DOCUAAENT;RE CORDER,III .. ,50 hours @ 19:4.7 ' 973.50
TOTAL - - 15,584.40
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