Bill's vice is returning in Spanish city (7)

I believe the answer is:

sevilla

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'bill's vice' is the definition.
I don't know anything about this answer so I cannot tell whether this works.

'is returning in spanish city' is the wordplay.
'is' becomes 'lives' ('he is' means 'he lives').
'returning in' is a reversal indicator.
'spanish city' becomes 'la' (Los Angeles. I am not sure about the 'spanish' bit.).
'lives' back-to-front is 'sevil'.
'sevil'+'la'='SEVILLA'

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I've seen this clue in The Independent.

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