00-081 County of Santa Clara AnnexationsAGREEMENT BETWEEN THE CITY OF CUPERTINO
AND THE COUNTY OF SANTA CLARA
THIS AGREEMENT (the "Agreement ") is entered into as of the,) 7 -4 day of
Li,a, 2000, by and between the CITY OF CUPERTINO, a municipal corporation (the
" ity ") and the COUNTY OF SANTA CLARA, a political subdivision of the State of California
(the "County ").
Recitals
A. The Cupertino Redevelopment Agency (the "Agency "), a redevelopment agency,
organized and existing under and by virtue of the provisions of the California Community
Redevelopment Law (Health and Safety Code Section 33000 et seq., the "CRL "), has prepared a
proposed Redevelopment Plan (the "Redevelopment Plan") for the Cupertino Vallco
Redevelopment Project (the "Project") for consideration by the City Council of the City of
Cupertino (the "City Council ").
B. As a part of the process prior to the consideration of the proposed Redevelopment
Plan by the City Council, the Agency has consulted with all affected taxing entities, including the
County.
C. During the Agency's consultations with the County in connection with the
Redevelopment Plan, the County expressed its concem that the Redevelopment Plan would
negatively impact the County's financial capability.
D. While it is difficult to assess with any degree of certainty the potential financial
impact to the County above and beyond that which will be mitigated by mandatory payments to
be made by the Agency pursuant to the CRL, the City desires to provide certain assistance to the
County for the purpose of alleviating any potential financial impact of the Redevelopment Plan
on the County.
Agreements
NOW, THEREFORE, THE CITY AND THE COUNTY HEREBY AGREE AS
FOLLOWS:
Section 1. Annexation of Garden Gatel.Monta Vista.
The City agrees to pursue the process to annex those properties currently located within
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the unincorporated area of the County and more particularly described as follows:
a. Properties within the area commonly referred to as "Garden Gate," as shown on
the map attached hereto and incorporated herein by this referenced as Exhibit A;
and
b. Properties within the area commonly referred to as "Monts Vista," as shown on
Exhibit A.
The City's undertakings hereunder shall be with the intent to complete the annexation
process within five (5) years from the effective date of this Agreement. Upon completion of
annexation, the City shall assume the costs of providing services to the properties annexed, as
applicable.
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Section 2. Additional Assistance to County.
The City agrees that it will take the actions set forth in this Section 2.
a. Sales Tax Revenue:
(1) Pursuant to the provisions of Article XIII, Section 29 (b) of the California
Constitution, for the sixth (6th) fiscal year (July 1 - June 30) following the
effective date of this Agreement and for each fiscal year thereafter until
the Termination Event (as hereafter defined), the City shall pay to the
County ten percent (10 %) of the New Project Area Sales Tax Revenue (as
hereafter defined) if the total sales per square foot of the total shopping
center in the Project Area has been in excess of $375 for the applicable
fiscal year (the "Base Sales Amount "), as adjusted in accordance with
changes in the Consumer Price Index (herein "CPI") pursuant to
subdivision (2) below.
(2) The Base Sales Amount shall be increased on July 1 of each year
following the effective date of this Agreement by a percentage amount
equal to the percentage amount that the CPI has increased, if any, from the
amount of the CPI in effect at the beginning of the preceding twelve (12)
month period. The CPI, as used herein, shall mean the Consumer Price
Index for All Urban Consumers, San Francisco - Oakland - San Jose
Metropolitan Area (1982 -84 =100), All Items. If the CPI does not exist in
the same format as described herein or ceases to exist in its entirety, the
City shall substitute any official index published by the Bureau of Labor
Statistics, or successor or similar governmental agency, as may then be in
existence and be most nearly equivalent thereto.
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(3) "Project Area," as used in this Agreement, shall mean the area included
within the boundaries of the Cupertino Vallco Redevelopment Project
described in the Redevelopment Plan for the Cupertino Vallco
Redevelopment Project, as adopted by the City Council.
(4) "New Project Area Sales Tai;: Revenue," as used in this Agreement, shall
mean that portion of the total sales tax actually received by the City from
the Project Area during a fiscal year remaining after deducting the
following:
(a) $1,567,000 (the approximate level of sales tax revenue received by
the City from the Project Area as of the effective date of this
Agreement), which amount shall be adjusted in accordance with
changes in the CPI in the same manner as adjustments are made to
the Base Sales Amount pursuant to subsection (2) above; and
(b) Payments of sales tax revenue made by the City to any person or
entity undertaking the redevelopment and revitalization of the
Project Area or portions thereof under an agreement with the City
and Agency.
(5) "Termination Event," as used in this Agreement, shall mean the expiration
of the effectiveness of the Redevelopment Plan for the Cupertino Vallco
Redevelopment Project.
(6) Payments to the County under this subsection 2.a. shall be made within
ninety (90) days after the end. of each fiscal year for which the Base Sales
Amount was achieved and the City actually received New Project Area
Sales Tax Revenue.
b. Additional Sheriff Deputy:
(1) For the sixth (6th) fiscal year following the effective date of this
Agreement and for twenty (20) years thereafter, the City shall pay to the
County the cost of employing; one additional sheriff deputy; this cost is
currently estimated to be $100,000 per year based on the County's fiscal
year 1999/2000 budget.
(2) Payments to the County under this subsection 2.b. shall be made within
ninety (90) days after the end. of each applicable fiscal year.
(3) In the event that, within five (5) years from the effective date of this
Agreement, the City has completed the annexation of ninety percent (90 %)
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,,. -
of the parcels within both the Garden Gate and Monta Vista areas as
described in Section 1 of this Agreement, the City's monetary obligations
under this subsection 2.b. shall be terminated. City's obligations under
this subsection shall also terminate at such time as City no longer contracts
with County for Sheriff's services.
Section 3. Changes in Tax Laws.
If the state laws governing the distribution of property and/or sales tax revenues are
changed such that the City's or County's share of such revenues, as they exist on the effective
date of this Agreement, is /are materially altered, then the amount to be paid by City to County
under Section 2a of this Agreement shall be adjusted proportionately. In that event, the parties
agree to negotiate in good faith to amend this Agreement to reflect that adjustment.
Section 4. No Litigation by County.
The County agrees not to file or engage or assist in any litigation, claim or other
proceeding to directly or indirectly test or challenge the validity of the Redevelopment Plan for
the Cupertino Vallco Redevelopment Project, including the Ordinance approving and adopting
the Redevelopment Plan and the Environmental Impact Report prepared for the Redevelopment
Plan.
Section 5. Effect of Litigation on Agreement.
In the event any litigation is initiated challenging the validity of the Redevelopment Plan
for the Cupertino Vallco Redevelopment Project, the Ordinance approving and adopting the
Redevelopment Plan or the Environmental Impact Report related to the Redevelopment Plan (the
"Project Documents /Actions "), and a judgment becomes final which declares all or any part of
the Project Documents / Actions invalid or ineffective, this Agreement shall become null and
void.
During the pendency of any litigation challenging the validity of the Project Documents /
Actions, the effect of this Agreement shall be suspended and the City shall have no obligation
hereunder until a judgment becomes final upholding the validity of the Project Documents /
Actions.
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FrM
Section 6. Notices.
Formal notices, demands and communications between the City and the County shall be
sufficiently given if dispatched by registered or certified mail, postage prepaid, return receipt
requested, to the following addresses:
To the City:
To the County:
Section 7. Severabili1y.
City of Cupertino
10300 Tone Avenue
Cupertino, CA 95014
Attn: City Manager
County of Santa Clara
70 West Hedding Street
San Jose, CA 95110
Attn: County Executive Officer
If any term of this Agreement is declared invalid, void or unenforceable by a court of
competent jurisdiction, then the remaining terms shall continue in full force and effect unless the
rights and obligations of the parties have been materially altered or abridged by such invalidity,
voiding or unenforceability.
Section 8. Entire Agreement: Modification.
The provisions of this Agreement constitute the entire understanding and agreement of
the City and the County respecting the subject matter hereof. No oral agreements,
understandings or promises made by the parties or their agents that are not contained in this
Agreement shall be binding. This Agreement shall not be amended except by a written
instrument executed by both parties.
Section 9. Attorneys' Fees.
If any legal action is commenced to interpret or to enforce the terms of this Agreement or
to collect damages as a result of any breach of this Agreement, then the party prevailing in any
such action shall be entitled to recover against the party not prevailing in any such action shall be
entitled to recover against the party not prevailing all reasonable attorneys' fees and costs
incurred in such action.
Section 10. Effectiveness.
This Agreement shall become effective as of the date that the Ordinance approving and
adopting the Redevelopment Plan for the Cupertino Vallco Redevelopment Project becomes
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w...
effective.
IN WITNESS WHEREOF, the City and the County have executed this Agreement as of
the date first above written.
ATTEST:
By:��
City Clerk
ATTEST:
; CITY
• i r
ayor
COUNTY OF S.�NTA CLARA
By: ✓ ` 9��
Donald F. Gage, Chairrers
By:
P�ry_4s P ez, Clerk of the and
Assistant County Counsel
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AND LEGALITY:
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RESOLUTION OF THE BOARD OF SUPERVISORS
OF THE COUNTY OF SANTA CLARA
APPROVING CONTRACT WITH THE
CITY OF CUPERTINO
WHEREAS, the City of Cupertino (City) has prepared a proposed Redevelopment Plan for
the Cupertino Vallco Redevelopment Project (Project); and
WHEREAS, staff for the City and for the County of Santa Clara have met to discuss the
impacts of the proposed Project on the County, and have prepared an agreement which would
provide certain future assistance to the County for the purpose of alleviating any potential financial
impact of the Project on the County; and
WHEREAS, the proposed agreement has been approved by the City Council of Cupertino;
NOW, THEREFORE, BE IT RESOLVED by the Board of Supervisors of the County of
Santa Clara that the attached Agreement Between the City of Cupertino and the County of Santa
Clara is hereby approved, and the Chairperson of the Board is authorized to execute the
Agreement on behalf of the County.
ADOPTED by the Board of Supervisors of the County of Santa Clara on
11 Il►I h' �nnn by the following vote:
AYES: ALVAf3ADO, BEALL, GAGE, MCHUGH, S1M1TIAN
NOES: NONE
ABSENT: NON$ S1
Donald F. Gage, Chakoorso
Board of Supervisors
ATTEST:
Assistant County Counsel
6 -6 -CV
sw.
RESOLUTION NO. 00 -169
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CUPERTINO
APPROVING AN AGREEMENT BETWEEN THE CITY OF CUPERTINO AND THE
COUNTY OF SANTA CLARA TO ASSIST THE COUNTY IN ALLEVIATING ANY
POTENTIAL FINANCIAL IMPACT OF THE VALLCO REDEVELOPMENT
PROJECT ON THE COUNTY
WHEREAS, the Cupertino Redevelopment Agency has prepared a proposed
Redevelopment Plan for the Cupertino Vallco Redevelopment Project;
WHEREAS, as part of the process prior to the consideration of the proposed
Redevelopment Plan by the City Council, the Agency has consulted with all affected taxing
entities, including the County.
WHEREAS, during the Agency's consultations with the County in connection with the
Redevelopment Plan, the County expressed its concern that the Redevelopment Plan would
negatively impact the County's financial capability;
WHEREAS, while it is difficult to assess with any degree of certainty the potential
financial impact to the County above and beyond that which will be mitigated by mandatory
payments to be made by the Agency pursuant to the California Community Redevelopment Law,
the City desires to provide certain assistance to the County for the purpose of alleviating any
potential financial impact of the Redevelopment Plan on the County.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Cupertino
that the City Manager is authorized to sign the attached agreement between the City of Cupertino
and the County of Santa Clara.
PASSED AND ADOPTED at a regular meeting of the City Council of the City of
Cupertino this 5th day of June, 2000, by the following vote:
Vote Members of the City Council
AYES: Burnett, Chang, James, Lowenthal, Statton
NOES: None
ABSENT: None
ABSTAIN: None
ATTEST:
City Clerk
APPROVED:
Mayor, City of Cupertino
County of Santa Clara
Office of the Clerk of the Board of Supervisors
County Government Center, East Wing
70 West Hedding Street
San Jose, California 95110 -1770
(408) 299 -4321 FAX: 298 -8460 TDD: 993 -8272
Phyllis A. Perez
Clerk of the Board
July 5, 2000
Donald D. Brown
City Manager
City of Cupertino
10300 Torre Avenue
Cupertino, CA 95014
SUBJECT: Cupertino Vallco Redevelopment Project
Dear Mr. Brown:
At the regular meeting on June 27, 2000 (Board Item No. 62), the Board of Supervisors took the
following action: "Adopted Resolution approving .Agreement with City of Cupertino relating to
Cupertino Vallco Redevelopment Project."
Enclosed for your record is the duplicate original of the Agreement.
Should you have any questions or need any further information, please feel free to contact me at
408.299.4321.
Very respectfully,
Jya 6� ambua VV
Deputy Clerk
CC. Department
RESOLUTION NO. 00 -169
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CUPERTINO
APPROVING AN AGREEMENT BETWEEN THE CITY OF CUPERTINO AND THE
COUNTY OF SANTA CLARA TO ASSIST THE COUNTY IN ALLEVIATING ANY
POTENTIAL FINANCIAL IMPACT OF THE VALLCO REDEVELOPMENT
PROJECT ON THE COUNTY
WHEREAS, the Cupertino Redevelopment Agency has prepared a proposed
Redevelopment Plan for the Cupertino Vallco Redevelopment Project;
WHEREAS, as part of the process prior to the consideration of the proposed
Redevelopment Plan by the City Council, the Agency has consulted with all affected taxing
entities, including the County.
WHEREAS, during the Agency's consultations with the County in connection with the
Redevelopment Plan, the County expressed its concern that the Redevelopment Plan would
negatively impact the County's financial capability;
WHEREAS, while it is difficult to assess with any degree of certainty the potential
financial impact to the County above and beyond that which will be mitigated by mandatory
payments to be made by the Agency pursuant to the California Community Redevelopment Law,
the City desires to provide certain assistance to the County for the purpose of alleviating any
potential financial impact of the Redevelopment Plan on the County.
NOW, THEREFORE, BE IT RESOH-VED by the City Council of the City of Cupertino
that the City Manager is authorized to sign the attached agreement between the City of Cupertino
and the County of Santa Clara.
PASSED AND ADOPTED at a regular meeting of the City Council of the City of
Cupertino this 5th day of June, 2000, by the following vote:
Vote Members of the City Council
AYES: Burnett, Chang, James, Lowenthal, Statton
NOES: None
ABSENT: None
ABSTAIN: None
ATTEST:
City Clerk
APPROVED:
Mayor, City of Cupertino