2019-003 - Authorizing the City Manager to Execute Agreements

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ARTICLE V1 ADMINISTRATION Or TAXES IF THE ORDINANCE IS CHALLC?NGED AS BEING INVALID A. Impoundment of funds, 1. When a legal action is bcgutn challenging the validity of the imposition of the tax, the City shall deposit in an interest-bearing escrow account, any proceeds transmitte=d to it under Article 11, C., until a court of competent jurisdiction renders a final and turn -appealable judgrnmt that the tax is valid. 2. If the tact is determined to be unconstitutional or othemise invalid, the City shall transmit to the Department the moneys retained in escrow, including any accumulated haterest, within ten days of the judgment of the trial court in the litigation awarding costs and fees becoming final and non -appealable. R. Costs of administration. Should n final judgment be entered in any court of the State of California, holding that Cityrs Ordinance is invalid or void, and requiring a rebate or refund to taxpayers of any taxes collected under the tcruas of this Agreement, [tie parties mutually agree that: I. Department may retain all payments made by City to Department to prepare to administer the City Ordinance. 2. City will pay to Department and allow Department to retain Department's cast of admitistcring the City Ordinance in the amounts set forth in Article IV of flits Agreement. 3. City will pay to Department or to the State of California the amount of any taxes plus interest and penalties, if any, that Department or the State of California may be required to rebate or refund to taxpayers. 4, City will pay to Department its costs for rebating or refunding such taxes, interest, or penalties, Department`s costs shall include its additional cost for developing procedures for processing the rebates tar refunds, its costs of actually making these refunds, designing and printing forms, and Resolution No. 2019-003 Page 10 of 11