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Ordinance No. 10-2054 Exhaustion of Administrative Remedies With Respect to Claims Against the City ORDINANCE NO. 10 -2054 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CUPERTINO ADOPTING SECTION 1.18.040 OF THE CUPERTINO MUNICIPAL CODE REGARDING EXHAUSTION OF ADMINISTRATIVE REMEDIES WITH RESPECT TO CLAIMS AGAINST THE CITY THE CITY COUNCIL OF THE CITY OF 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 aggrieved taxpayer, fee payer or other person must exhaust administrative remedies by: (i) exhausting 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 of Purpose. This Ordinance is intended to apply the requirements of Article XIII, Section 32 of the California Constitution to disputes involving taxes and fees imposed by the City. These requirements include the "pay first, litigate later" rule that requires those who dispute their taxes to pay them before suing for a refund. In the absence of such a rule, any taxpayer 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 any provision of this Ordinance, or its application to any person or circumstance, be determined 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 circumstance 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 36933, a summary of this Ordinance may be published and posted in lieu of publication and posting of the entire text. Ordinance No. 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: Wang, Wong, Chang, Mahoney, Santoro Noes: None Absent: None Abstain: None ATTEST: APPROVED: / City Clerk Mayor, City of Cupertino v STATE OF CALIFORNIA ) COUNTY OF SANTA CLARA ) CITY OF CUPE'RTINO ) I, KIMBERLY SMITH, City Clerk and ex- officio Clerk of the City Council of the City of Cupertino, California, do hereby certify the attached to be a true and correct copy of Ordinance No. 10- 2054, which was enacted on March 2, 2010, and that it has been published or posted pursuant to law (G.C. 40806). IN WITNES'S WHEREOF, I havE, hereunto set my hand and seal this 25th day of August 2010. KIMBERLY S I H, City Clerk and Ex-officio Clerk of the City Council of the City of Cupertino, California ordinance certificate