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17. Second reading Ord. 10-2054 Administrative Remedies for claimsORDIl~ANCE NO: 10-2054 AN ORDINANCE OF THE CITY COUr''CIL OF THE CITY OF CUPERTINO ADOPTING SECTION 1.18.040 OF THE ~CUPERTINO MUNICIPAL CODE. REGARDING EXHAUSTION !JF ADIIRINISTRATIVE REMEDIES WITH RESPECT TO CLAIMS AGAINST THE CITY THE CITY COUNCIL OF THE CITY (~F CUPERTINO DOES HEREBY ORDAIN AS .FOLLOWS: Section 1. Code Amendment. Section 1.18.040 of the Cupertino Municipal Code is hereby adopted to read as follows: Section 1.18.040 Exhaustion of Administrative Remedies Prior to seeking judicial relief with respect to ~a dispute regarding a tax, fee or other charge imposed by the city, an aggrieveci taxpayer, fee payer or other person must exhaust administrative remedies by: (i) exhau:~ting any administrative remedies specified by any other provision of this code or other applicable law, (ii) paying the full amount owed, including applicable penalties and interest, and (iii) presenting a claim for refund under section 1.18.015 of this code. Section 2. Statement ofPurpose. 'this Ordinance is intended to apply the requirements of Article XIII, Section 32 of thf; California Constitution to disputes involving taxes and fees imposed by the City. These requirements include the "pay first, litigate latex" rule that requires those who dispute their taxes to pay them before suing for a refund. In the absence of such a rule, any ta:~payex could impose significant hardship on the City and undermine its ability to predict its revenues and manage its resources for the benefit of the public it serves. Absence of such a rule would give unwarranted hold- up leverage to every taxpayer, no matter how unfounded his or her refund claim might be. Section 3. Severability. Should an.y provision of this Ordinance, or its application to any person or circumstance, be ~3etermined by a court of competent jurisdiction to be unlawful, unenforceable or otherwise void, that determination shall have no effect on any other provision of this Ordinance or the application of this Ordinance to any other person or circumstancc; and, to that end, the provisions hereof are severable. Section 4. Effective Date. This Ordinance shall take effect thirty days after adoption as provided by Government Code Section 36937. Section 5. Certification. The City Clerk shall certify to the passage and adoption of this Ordinance and shall give notice of its adoption as required by law. Pursuant to Government Code Section 369:3, a summary of this Ordinance may be published and posted in lieu of publication anti posting of the entire text. 17-1 Ordinance 10.10-2054 2 INTRODUCED at a regular adjourned meeting of the Cupertino City Council the 16th day of February and ENACTED at a regular meeting of the Cupertino City Council the 2nd day of March 2010 by the following vote: Vote Members of the City Council Ayes: Noes: Absent: Abstain: ATTEST: City Clerk APPROVED: Mayor, City of Cupertino 17-2