HomeMy WebLinkAbout057-88 RESOLUTION NO. 57-88
A RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF DANVILLE
APPROVING "SETTLEMENT AGREEMENT BY AND BETWEEN
THE COUNTY OF CONTRA COSTA,
THE TREASURER OF CONTRA COSTA COUNTY
THE AUDITOR OF CONTRA COSTA COUNTY,
AND THE CITIES OF CONTRA COSTA COUNTY"
WHEREAS, the City is party to a lawsuit in Sacramento Superior
Court entitled Antioch, et al. vs. Contra Costa County, et al.,
Action No. 339240; and
WHEREAS, the parties to said lawsuit are desirous of settling;
and
WHEREAS, a Settlement Agreement for settlement of Action No.
339240 has been presented to the Council, a copy of which is
attached hereto as Exhibit A; and
WHEREAS, the Council is familiar with the contents of the
Settlement Agreement;
NOW, THEREFORE, the Council approves the "Settlement Agreement
By and Between the County of Contra Costa, the Treasurer of
Contra Costa County, the Auditor of Contra Costa County, and the
cities of Contra Costa County" and authorizes and directs the
Mayor to sign the same.
PASSED, APPROVED, AND ADOPTED ON the 2nd day of May, 1988, by
the following vote:
AYES: Greenberg, Lane, Ritchey, Schlendorf
NOES: None
ABSENT: Jagger
Settlement Agreement By and Between the
County of Contra Costa, the Treasurer
of Contra Costa County, the Auditor of
Contra Costa County, and the Cities of
Contra Costa County
1. ~AR~E~. The parties to this Agreement are the Cities of
Antioch, Brentwood, Clayton, Concord, Danville, E1Cerrito,
Hercules, Lafayette, Martinez, Moraga, Orinda, Pinole, Pittsburg,
Pleasant Hill, Richmond, San Pablo, San Ramon, Walnut Creek
(hereafter referred to collectively as MCities"), the County of
Contra Costa (hereafter referred to as nCounty"), the Treasurer of
Contra Costa County (referred to as "Treasurer"), and the Auditor
of Contra Costa County (referred to as MAuditor~).
2. ~UI~.~O~E. A lawsuit was filed in the Sacramento County
Superior Court entitled Antioch. et al. v. Contra Costa Count~ et
~[~ (No. 339240) wherein the Cities alleged that the County, the
Treasurer, and the Auditor had failed to distribute to Cities,
pursuant to Penal Code section 1463, their share of the fine and
forfeiture revenues collected from defendants convicted of mis-
demeanors in the Contra Costa County Municipal Courts and placed
on "s~,mary" probation (also referred to as "court" probation
and/or "conditional sentence"). (Said revenues are hereinafter
referred to as ~fines and forfeitures.") The purpose of this
agreement is to finally and fully resolve all of the issues and
claims between the parties in Action No. 339240 currently pending
in the Sacramento Superior Court·
3. ~C~.~.~E. The effective date of this Agreement is
the last date it is executed by any party.
4. UI~..~C~.~D ~V~. The lawsuit referenced in paragraph 2
does not involve fines collected by the Contra Costa County
Municipal Courts from defendants who pay their fines directly to
the municipal court, which fines are currently being, and will
continue to be, distributed by County to Cities as provided in
Penal Code section 1463, without any collection fee.
5 INTERIM AGREEMENT SUPERSEDED. The Cities and County are
parties to an "Interim Agreement Between Contra Costa County And
The Cities of Contra Costa County, a copy of which is attached
hereto as ~l~i~[~.~, wherein County agreed to pay to Cities their
share of fines and forfeitures collected from defendants on sum.
mary probation whose court orders are received by the Summary
Probation Services Unit on and after September 1, 1987, and Cities
agreed County was entitled to an Minterim collection fee" of
twelve percent (1296). This settlement agreement supersedes the
Interim Agreement.
(Page i of 26)
6. ~_.A~I~N. This Agreement is not and shall never be
considered to be an admission of any fault, error, wrongdoing, or
liability by the County, the Treasurer, the Auditor, or by any
agent, officer, servant, or employee of any of them.
Cities the total sum of Two Million Two Hundred Ninety-Nine
Thousand Three Hundred and Eleven Dollars ($2,299,311.00) in
accordance with the pa~nent schedule set forth in paragraph 9.
(This amount may be referred to as "back fine revenues.")
8. AP~OR~IONI~_~'T ~ B~K ~NE RE~.E~. ~. The sum of
$2,299,-311.00 shall be apportioned among the Cities as follows:
Antioch 5.81% $ 133,590.00
Brentwood 0.56% $ 12,876.00
Clayton 0.42% $ 9,657.00
Concord 20.58% $ 473,198.00
Danville 5.47% $ 125,772.00
E1Cerrito 3.49% $ 80,246.00
Hercules 0.96% $ 22,073.00
Lafayette 6.80% $ 156,353.00
Martinez 8.72% $ 200,500.00
Moraga 1.58% $ 36,329.00
Orinda 1.36% $ 31,271.00
Pinole 2.93% $ 67,370.00
Pittsburg 3.32% $ 76,337.00
Pleasant Hill 7.75% $ 178,197.00
Richmond 8.99% $ 206,708.00
San Pablo 2.19% $ 50,355.00
San Ramon 3.12% $ 71,739.00
Walnut Creek 15.95% $ 366,740.00
The percentages set forth in this paragraph apply only to the back
fine revenues and to the Interest provided for in paragraph 14(c).
(Page 2 of 26)
9. PAY BACK PERIOD The back fine revenues ($2,299,311 00)
shall be paid to Cities over the following "pay back period" and
apportioned among the Cities according to the percentages in
paragraph 8 above:
(a) $250,000 on or before June 30, 1988;
(b) $300,000 during Fiscal Year 1988-1989 (FY 1988-89) by
monthly payments from AB 2519 monies (see paragraph 10, below) as
received, with a final payment at the end of FY 1988-89, if
necessary, so that a minimum of $300,000 is paid during FY 1988-89;
(c) $500,000 during each succeeding fiscal year, by
monthly payments as set forth in subparagraph (b) above, with a
final payment at the end of each fiscal year, if necessary, so
that a minimum of $500,000 is paid during each fiscal year, until
paid in full.
County may pay more than the above amounts in any fiscal
year.
10. AB 2519 MDNIES. (a) AB 2519, Stats· 1987, oh. 1158,
enacted P~'."~.'~S'~463.14(b) and 1463.16(c). Pursuant to
Penal Code section 1463(a)(3), Cities and County agree that the
revenue collected pursuant to Resolution No. 88-28, adopted by the
Board of Supervisors of Contra Costa County, as authorized by
Penal Code sections 1463.14(b) and 1463.16(c) (hereafter referred
to as ~AB 2519 monies"), deposited with County, and designated by
statute for distribution to Cities and County, shall be distri-
buted 100% to Cities.
(b) Cities agree that the foregoing "AB 2519 monies" may be
used by County as the source for payment to Cities of the "back
fine revenues" ($2,299,311), as set forth in paragraph 9 (Pay Back
Period).
(c) Cities further agree that County may use any "AB 2519
monies" in excess of the amount needed to comply with the payment
schedule set forth in paragraph 9 in any later fiscal year during
or following "the pay back periodn to reimburse itself for the
initial $250,000 payment and subsequent annual payments (including
the County's payment for criminal justice automation projects as
set forth in paragraph 15, below).
(d) It is further agreed that following County's reimburse-
ment from MAB 2519 monies," as provided in subparagraph (c) above,
Cities will receive "AB 2519 monies," in accordance with paragraph
11, below.
11. F.trf..U __.AB 2. S!9 r N!ES. Following payment of the back
fine revenues and County's reimbursement as provided in paragraph
10(c) above, Cities will receive the percentage of "AD 2519
monies" which County would otherwise receive under Penal Code sec-
tion 1463, unless (1) the State is, or becomes, entitled to
receive the County's share of "AB 2519 monies"; (2) the County
does not opt into the Trial Court Funding Act (Government Code
(Page 3 of 26)
sections 77000 ff) and is therefore entitled to retain its statu-
tory share (Penal Code section 1463) of "AB 2519 monies"; (3) the
County opts into the Trial Court Funding Act, but the law has or
is later changed so that it permits the County to retain its statu-
tory share of "AB 2519 monies" instead of requiring said monies
to be paid to the State; or (4) the Trial Court Funding Act is
repealed and the law thereafter allows the County to retain its
statutory share of "AB 2519 monies" instead of requiring said
monies to be paid to the State. In any event, following payment
of the back fine revenues and County's reimbursement as provided
in paragraph 10(c) above, each City will receive at least its per-
centage share of "AB 2519 monies" pursuant to Penal Code section
1463, so long as AB 2519 is not repealed by the Legislature.
12. GUARANTEE. County's agreement to pay the sum of
$2,299,311 over the pay back period set forth in paragraph 9 is
not contingent on County's ability to use AB 2519 monies as the
source for payment. County agrees to pay to Cities the sum of
$2,299,311.00 over the "pay back period" set forth in paragraph 9,
regardless of the existence or receipt of AB 2519 monies.
If AB 2519 monies are unavailable as a revenue source, County
will make annual payments to Cities at the end of each fiscal year
in the amounts indicated in paragraphs 9(a) - (c), above.
13. COLLECTION FEE. County will receive a collection fee of
twelve and one-half percent (121/2%) of fine revenues collected from
defendants on su~mmry probation and available for distribution
pursuant to Penal Code section 1463, which shall be in addition to
the County's statutory share (Pen. Code, S 1463) of summary proba-
tion collections. The twelve and one-half percent is a collection
fee and is not intended to be an adjustment to the statutory per-
centages set forth in Penal Code section 1463.
The collection fee shall apply to all fines and forfeitures
collected by County on and after September 1, 1987, except "old
collections" (see paragraph 16). The collection fee shall be in
addition to the fee for processing installment accounts as pro-
vided in Penal Code section 1205(c).
There shall be a retroactive one-half percent (1~2%) adjustment
to the twelve percent (12%) "interim collection fee" for all fines
and forfeitures paid to Cities by County pursuant to the Interim
Agreement (Exhibit A) to provide for the agreed upon twelve and
one-half percent (121/2%) collection fee to County. Said adjustment
shall be deducted from the Cities' share of fines and forfeitures
collected during the first full month following the effective date
of this agreement.
14. I NTF.~ST. (a) The back fine revenues of $2,299,311.00
include accrued interest to April 1, 1988. Such interest will
cease to accrue after April 1) 1908 if th(~ County has executed
this settlement agreement prior to that date, otherwise interest
at the legal rate (~8 per annum) will aecrue on said sum until the
first day of the month following the date the County executes the
settlement agreement.
(Page 4 of 26)
(b) It is agreed that Four hundred five thousand three
hundred thirty dollars ($405,330) represents the amount of
interest Cities would have received during the "pay back period,"
if interest did not cease as provided in subparagraph (a) above.
(¢) If Cities do not receive a total of $405,330 from AB
2519 monies following the "pay back period," County agrees to pay
to Cities the sum of $405,330, or the difference between $405,330
and any AB 2519 monies received after the "pay back period,"
whichever is less.
(d) The amount to be paid pursuant to subparagraph (c) above,
if anyi will be apportioned among the Cities as provided in
paragraph 8, above.
(e) County's obligation under subparagraph (c) above shall
accrue if and when Cities cease receiving all AB 2519 monies but
in no event prior to the end of the pay back period. The amount
to be paid under subparagraph (c) above shall be paid within one
year of such accrual.
15. CI _I__MIN L JUST!CE A T!9N P.Ri2.JE.C _S. Following payment
of the initial payment of $250,000, Cities agree that $814,400 of
the payments to the Cities shall be deposited into a separate and
distinct, interest bearing trust account in the County Treasury to
fund certain criminal justice automation projects, provided:
(a) County contributes $185,600 in additional funds
within 3 years of the effective date of this settlement agreement;
(b) Two-thirds of the City Councils of Cities and the
County Board of Supervisors agree on the projects to be funded and
related matters (e.g., whether projects should be publicly bid);
(c) Agreement on how the total fund of $1,000,000 is to
be used is reached within two (2) years of the effective date of
the Settlement Agreement; if no agreement is reached within said
two years, the monies deposited on behalf of the Cities (plus
accrued interest) shall be distributed to the Cities as provided
in paragraph 8 and County's contribution (plus accrued interest)
shall be returned to County.
One-half of all the monies agreed to be paid to Cities
(after payment of the initial $250,000) pursuant to paragraph 9,
shall be deposited into the trust account, until a total of
$814,400 of payments on behalf of the Cities has been set aside in
such account.
16. OLD COLLECTSIONS. Those fines collected after September
1, 1987, from defendants placed on summary probation prior to
September 1, 1987 ("Old Collections") will be paid to Cities as
received, based on th~ following p~rcentages-
(Page 5 of 26)
rerc_en.t
Antioch 2.85%
Brentwood .30%
Clayton .17%
Concord 9.06%
Danvi I le 2.29%
E1 Cerrito 1.44%
Hercul es .44%
Lafayette 3.40%
Mar ti nez 3.80%
Moraga .72%
Ori nda 1.69%
Pinol e 1.31%
Pit tsburg 1.20%
Pleasant Hill 4.08%
Richmond 3.99%
San Pablo .94%
San Ramon 2.18%
Walnut Creek _.7._68%
47.54%
County and others 5~._46%
1 O0.00%
"Old Collections" received from September 1, 1987 until the
effective date of this agreement shall be paid to Cities within 30
days of the effective date. (The foregoing percentages have been
adjusted on a pro-rata basis to include a twelve and one-half per-
cent (121~%) collection fee to County.)
17. t~UTI~E _FINES A~I]~ FQRFEITUI~ES. With the exception of "old
collections," all fines and forfeitures collected by County from
defendants on surrmary probation whose court orders are received by
County on and after September 1, 1987, shall be distributed to
Cities according to the percentages set forth in Penal Code sec-
tion 1463, less the twelve and one-half percent (121/2%) collection
fee provided for in paragraph 13.
(Page 6 of 26)
r,~¸ ~
18. ~j~E~.!~N_E~FOR~. The collection efforts of County
shall be maintained at least substantially equal to the level of
collection effort and quality during the period May 1, 1983 to
August 31, 1987, provided County may make changes in its methods
of collecting the fines and forfeitures but only to increase or
maintain that level of effort.
19. FUT~E DISCUSSIONS. Cities agree to discuss with County
the use of AB 2519 monies for criminal justice automation projects
following the "pay back period."
20. ~U~[~. At least monthly, County shall provide to
Cities, in written form, data relating to the fines and forfeitures
to which this agreement is applicable and which are the basis for
the amounts distributed by County to Cities as provided by this
Agreement. Upon reasonable advance notice, the respective Cities
shall have the right to inspect relevant County records to deter-
mine the accuracy of the amount of funds disbursed pursuant to
this Agreement. County agrees to maintain its records in such a
manner as to enable Cities to perform such an audit. All such
records shall be maintained for four (4) years.
21. ~[SM[{~A/~. Within thirty days of the effective date of
this Agreement, Cities shall file a dismissal with prejudice as to
all defendants in
Sacramento Superior Court No. 339240.
22. ~S~. Each party shall bear their own costs and attor-
ney's fees.
23. M(2D!~I~IO_N~. This Agreement may be modified only by a
written instrument executed by all parties hereto.
24. ~F~.~. Each and every city who is a party to this
agreement, on behalf of itself, its successors and assigns,
hereby releases and discharges the County of Contra Costa, the
Auditor of Contra Costa County, the Treasurer of Contra Costa
County, and their officers, employees, agents, successors, descend-
ants, dependents, heirs, executors, administrators, and assigns,
from all causes of action, claims, demands, damages, and liabili-
ties of any kind, whether known or unknown, now existing or
hereafter arising from the facts and circumstances set forth in
the petition and complaint, as amended, in Sacramento Superior
Court Action No. 339240.
25. ~UPLI~ATE ~RI~INALS. This Agreement is executed in 19
duplicate originals so that each party will have an original of
this Agreement.
(Page 7'of 26)
Contra Costa County
Da t e d: ................. By. ..............................
Chairman, Board of Supervisors
Approved as to form: ATTEST: PHIL BATCI-IELOR, Clerk
of the Board of Supervisors and
Victor J. Westman County Administrator
County Counsel
By: ...... . .............. By: ..............................
Deputy County Counsel Deputy
Dated: ........ . ......... . ................................
Alfred P. Lomeli
Treasurer-Tax Collector of Contra
Costa County
Dated:
Donald L. Boucher
Auditor-Controller of Contra
Costa County
(Page 8 of 26)
.....~. ~ ,1988,t ._.~ ........,
Executed on ........
California by:
CITY OF DANVILLE ATTEST:
APPROVED AS TO FORM:
:~/ / \r: "/) ·
.... ~~~.~ .........
City Attorney
/
. /
(Page 13 of 26)
~
INTERIM
AGREEMENT BETWEEN CONTRA COSTA COUNTY AND THE
CITIES OF CONTRA cosTA COUNTY
This agreement is entered into in duplicate between Contra
Costa County (referred to as "County") and the Cities of Antioch,
Brentwood, Clayton, Concord, Danville, E1 Cerrito, Hercules,
Lafayette, Martinez, Moraga, Orinda, Pinole, Pittsburg, Pleasant
Hill, Richmond, San Pablo, San Ramon, Walnut Creek (referred to as
"Cities").
Recitals
1. The Cities are parties to a Joint Powers Agreement
whereby a lawsuit was authorized against County with respect to
the collection and distribution of Municipal Court fines. The
City Councils of the 18 cities party to said Joint Powers
Agreement have authorized the "Administrative Committee" created
by said Joint Powers Agreement to execute this agreement.
2. An action was filed by the 18 Cities of Contra Costa
County against County of Contra Costa, its Treasurer and Auditor
in Sacramento Superior Court, Action Number 339240, entitled
Antioch et al. v. Contra Costa County et al.
3. The parties desire to resolve the lawsuit and the matter
of future distribution of the fines subject to the lawsuit through
a settlement agreement.
EXHIBIT A
4. The purpose of this agreement is to avoid unnecessary
legal proceedings and to define the parameters of settlement
discussions. The County does not admit liability by entering into
this agreement or by discussing settlement.
5. This agreement is not a settlement agreement and shall
not be introducted into evidence in the lawsuit either by
plaintiffs or defendants, except to enforce the terms hereof in an
independent action.
WHEREFORE, County and Cities agree as follows:
A. The parties agree the above recitals are true and
correct.
B. As used herein, "lawsuit" means the action entitled
Antioch et al. v. Contra Costa County et al., Sacramento Superior
Court Action No. 339240.
As used herein, "conditional sentence" shall mean
conditional sentence as defined in Penal Code section 1203 and
shall include "summary probation" and "court probation" and
"revocable release."
As used herein, "interim collection fee" shall mean that
fee which the County is entitled to receive for its costs of
collection of the fines and forfeitures subject to the lawsuit
during the term of this agreement.
As used herein, "permanent collection fee" shall mean
that fee which the Cities agree the County is entitled to receive
for its %rue direct costs of collection of %he fines and
forfeitures subject to the lawsuit. The "permanent collection
--2--
° C (
fee" shall be an amount which the County and Cities agree will
reimburse County for its direct costs of collection and shall not
include costs of supervision of defendants placed on "conditional
sentence." The "permanent collection fee" may be greater or less
than the "interim collection fee."
C. As soon as administratively feasible, but no later than
September 1, 1987, County shall distribute all fines and
forfeitures which are collected from defendants on "conditional
sentence" whose court orders are received by the Summary Probation
Services Unit on and after September 1, 1987, in accordance with
Penal Code section 1463.
D. For the period of this agreement, Cities agree that
County shall withholdan additional twelve percent (12%) over and
above the percentage to be retained by County as set forth in
Penal Code § 1463, from the fines and forfeitures distributed to
each city pursuant to paragraph C, above, as an "interim
collection fee" for County collection services. County shall
provide a monthly accounting to Cities of the monies retained by
County and dispersed to Cities.
E. It is specifically agreed and understood that the
"interim collection fee" of twelve percent (12%) is subject to
adjustment retroactively for the period of time covered by the
lawsuit upon final agreement by the parties of the "permanent
collection fee" and County shall reimburse Cities or Cities shall
reimburse County, as the case may be. for the difference between
the "interim collection fee" and the "permanent collection fee."
County agrees to maintain records so that the "interim collection
fee" may be adjusted retroactively.
Revised: 8/31/87 -3-
F. Upon execution of this interim agreement, Cities will
drop the lawsuit from the civil active list with the understanding
that cities will immediately file a new "at issue" memo.
G. The County and Cities will promptly and in good faith
meet and attempt to arrive at a settlement of the lawsuit, which
will include resolution of the following issues:
1. The amount of damages payable to Cities;
2. The amount of interest on such damages;
3. A permanent collection fee, for the period of time
covered by the lawsuit and prospectively;
4. The method of payment of the damages plus interest;
5. Use of all, a portion or none of the damages for
funding the Cities' reasonable share of future joint
city/County justice automation and information
projects.
H. County will develop and provide to Cities an accounting
of the Cities' share of fines and forfeitures collected for the
applicable period of time and the County's costs of collection for
that same period of time and for the future. Cities may
thereafter conduct and pay for an independent audit or statistical
sampling to determine the amount of damages and/or the County's
costs of collection.
I. It is specifically understood that neither County nor the
Cities is committed or required to agree to settlement of the
lawsuit by entering into this agreement.
--4--
J. This agreement shall terminate upon the execution of a
Settlement Agreement, the commencement of trial of the lawsuit,
the filing of a summary judgment motion, or September 1, 1988,
whichever occurs first, unless this agreement is amended in
writing.
K. Cities agree not to conduct any formal discovery before
January 1, 1988. For purposes of this agreement, "formal
discovery" means service of any one of the following:
interrogatories, request for admissions, notice of deposition,
subpoena re deposition, demand for inspection and copying of
documents and things, or any other discovery device provided for
in Code of Civil Procedure sections 2016-2036.
L. County agrees to share equally in the cost of an
independent audit to verify County's costs of collection if such
an audit is deemed necessary by Cities, provided in no event shall
County pay more than $10,000.
Dated: Contra Costa County
Administrative Committee for
Contra Costa County
K~~arms
-5'
· C C
Dated: Cities of Antioch, Brentwood,
Clayton, Concord, Danville, E1
Cerrito, Hercules, Lafayette,
Martinez, Moraga, Orinda,
Pinole, Pittsburg, Pleasant
Hill, Richmond, San Pablo, San
Ramon, Walnut Creek
by: Administrative Committee of
Joint Powers Agreement by
and between Cities of Contra
Costa Count¥~
Mic~nael Menesini
Davld Ben3amln \
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