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File #: 21-1204    Name: Second Amended and Restated MOU with City of Mendota
In control: Public Works & Planning
On agenda: 12/14/2021 Final action: 12/14/2021
Enactment date: Enactment #: Agreement No. 21-553
Title: 1. Approve and authorize Chairman to execute the Second Amended and Restated Memorandum of Understanding between the County of Fresno and the City of Mendota. 2. Determine that the approval and authorization of the Chairman to execute the Second Amended and Restated Memorandum of Understanding between the County of Fresno and City of Mendota is exempt from the requirements of the California Environmental Quality Act, Public Resources Code 2100, et seq., and direct staff to file a Notice of Exemption with the Office of the Fresno County Clerk.
Attachments: 1. Agenda Item, 2. Exhibit A, 3. Agreement A-21-553 with City of Mendota

DATE:                     December 14, 2021

 

TO:                     Board of Supervisors

 

SUBMITTED BY:                     Steven E. White, Director

                     Department of Public Works and Planning

 

SUBJECT:                     Second Amended and Restated Memorandum of Understanding between the County of Fresno and the City of Mendota

 

RECOMMENDED ACTION(S):

TITLE

1.                     Approve and authorize Chairman to execute the Second Amended and Restated Memorandum of Understanding between the County of Fresno and the City of Mendota.

 

2.                     Determine that the approval and authorization of the Chairman to execute the Second Amended and Restated Memorandum of Understanding between the County of Fresno and City of Mendota is exempt from the requirements of the California Environmental Quality Act, Public Resources Code 2100, et seq., and direct staff to file a Notice of Exemption with the Office of the Fresno County Clerk.

REPORT

The City of Mendota’s Memorandum of Understanding (MOU) (Agreement No. 06-029) will expire on February 7, 2022.  The proposed MOU continues the property and sales tax revenue distribution methodology contained in the current MOU, as directed by your Board.  The provisions of this MOU will apply to annexations to the City of Mendota during its term as well as development in the current Sphere of Influence (SOI) boundary of the City of Mendota as approved by the Fresno County Local Agency Formation Commission (LAFCO) and 1,206.28 acres of future growth areas previously contained in the prior MOU.  This item pertains to areas located in District 1.

 

ALTERNATIVE ACTION(S):

 

Your Board may determine not to approve the proposed Second Amended and Restated MOU between the City of Mendota and the County.  However, by not approving the recommended action, future annexations by the City would need to be considered by the Board on a case by case basis.  In addition, sales tax sharing provisions will cease unless extended by a subsequent agreement.

 

FISCAL IMPACT:

 

There is no Net County Cost associated with the Recommended Actions.  The recommended Second Amended and Restated MOU will continue the existing MOU property tax and sales tax sharing provisions.

 

Property Tax Revenue

 

There are no changes recommended to the methodology for the distribution of property tax revenue under the recommended agreement.  Under the current MOU, property tax revenue in areas being annexed into the City are shared between the City and County as follows: 63% County and 37% City

 

Sales and Use Tax Revenue

 

There are no changes recommended to the methodology for the distribution of sales tax and use revenues under the recommended agreement.  The County will continue to receive 5% of the 1% local sales tax revenue generated in the City of Mendota.

 

DISCUSSION:

 

In 1990, the City of Mendota and the County entered into a MOU (Agreement No. 90-127) to address growth issues in the region and revenue sharing.  The MOU was subsequently extended in 2006 and amended in 2008 to address a sphere of influence expansion to accommodate a wastewater treatment plant expansion.  The MOU was also extended by one year in January 2021.

 

The proposed Second Amended and Restated MOU carries forth the same provisions as contained in the current MOU related to property and sales tax revenue sharing, directing growth to the City consistent with the County’s General Plan, promotion of economic development in form of streamline annexation standards for industrial and regional commercial uses, mutual collection of development impacts fees, and compliance with City development standards when the County approves development with the City’s SOI.  In addition, the proposed agreement incorporates the future growth area from the 2006 MOU which totals approximately1,206.28 acres.  The following is a summary of the major provisions contained in the recommended agreement:

 

Alternative Standards of Annexation

 

For the purpose of promoting economic development and job creation, the recommended agreement continues to include the provision that streamlines the annexation of areas for industrial and regional commercial uses.  This provision is consistent with the County's General Plan goals and policies to support partnership efforts with cities to create jobs and reduce unemployment.  The County recognizes that for an area to be competitive in the attraction of business development, cities must have developed industrial parks and commercial centers available.

 

The application of this provision for the annexation of land for industrial and commercial development included in this agreement continues to require the City to provide a conceptual development plan, including a list of economic objectives to be achieved, the service and financing strategy and a schedule identifying the timeframe for completion of major project components.  The City is also required to pre-zone the property and meet annually with the County staff to review the progress until the development is completed.

 

Compliance with City Standards

 

Consistent with the County's General Plan policies, the recommended agreement will continue to direct growth to the City and require that the County refer proposals for new urban development to the City for annexation purposes.  The agreement also recognizes that because of state-mandated directives, including, but not limited to, the state Regional Housing Needs Allocation, the County may need to consider approval of urban development in areas that are not currently planned for such uses.

 

The recommended agreement also contains provisions that require all discretionary applications processed by the County at any location within the City's SOl adhere to City property development standards, if more stringent than the County, and pay applicable City development fees.

 

City Collection of Countywide Capital Facility Fees

 

The recommended agreement continues the provision for the City collection of countywide capital facilities fees by the City for development projects implemented in the City of Mendota, if fees are adopted by the Board of Supervisors.

 

County Collection of City Development fees within City SOl

 

The recommended agreement also continues the provision for the adoption and collection of City development fees by the County, for development projects implemented in the City's SOl, if requested and adopted by the City.

 

Future Growth Areas

 

The agreement incorporates the future growth area from the 2006 MOU amendment which totals approximately1,206.28 acres.  This area is intended to accommodate the existing Federal Prison and planned light industrial uses.

 

California Environmental Quality Act

 

The proposed amendment to the MOU is exempt under Section 15061, subdivision (b)(3) of the California Environmental Quality Act (CEQA) Guidelines, because it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment. In addition, under CEQA Guidelines section 15378, subdivisions (b)(2), (b)(4), and (b)(5), the activity does not meet the definition of a “project.”

 

OTHER REVIEWING AGENCIES:

 

The Mendota City Council discussed and approved the Second Amended and Restated MOU at a public hearing on November 09, 2021.

 

REFERENCE MATERIAL:

 

BAI #34, January 26, 2021

BAI #55, July 8, 2008

BAI #7, February 7, 2006

BAI #32.1, March 27, 1990

 

ATTACHMENTS INCLUDED AND/OR ON FILE:

 

Exhibit A

On file with Clerk - Second Amended and Restated City/County MOU

 

CAO ANALYST:

 

Ron Alexander