HomeMy WebLinkAboutCity of Reedley MOU A-21-361.pdf1
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SECOND AMENDED AND RESTATED
MEMORANDUM OF UNDERSTANDING BETWEEN
THE COUNTY OF FRESNO AND THE CITY OF REEDLEY
THIS AMENDED AND RESTATED MEMORANDUM OF UNDERSTANDING (hereinafter
"RESTATED MOU") is made and executed by and between the COUNTY OF FRESNO, a political
subdivision of the State of California (hereinafter referred to as "COUNTY"), and the City of REEDLEY,
a municipal corporation of the State of California (hereinafter referred to as "CITY").
W I T N E S S E T H
WHEREAS, on October 3, 2006, COUNTY and CITY entered into a comprehensive agreement
covering development, annexations, sales taxes, property taxes, and other matters, commonly referred
to as the 2006 Amended and Restated Memorandum of Understanding (“2006 MOU”); and
WHEREAS, the 2006 MOU served in part as COUNTY’s and CITY’s master property tax transfer
agreement under subdivision (d) of section 99 of the Revenue and Taxation Code; and
WHEREAS, the 2006 MOU also included provisions relating to redevelopment and included as a
party the former Reedley Redevelopment Agency, which CITY dissolved on February 1, 2012, following
the State adopted comprehensive legislation, Assembly Bill X1 26 (Stats. 2011, 1st Ex. Sess. Chp. 5),
dissolving California redevelopment agencies and prohibiting further redevelopment activities under the
California Community Redevelopment Law (former Health and Safety Code Section 33000 et seq.); and
WHEREAS, on September 26, 2017, COUNTY and CITY executed a First Amendment to the
2006 MOU to address a specific sphere of influence change located at the northwest and northeast
corners of the intersection of South and Frankwood Avenues, and on the north side of Manning Avenue
between Buttonwillow and Englehart Avenues, and modifications to the annexation standards to allow
for greater flexibility in the annexation process for the City to address its Regional Housing Needs
Allocation; and
WHEREAS, the 2006 MOU is set to expire October 3, 2021; and
WHEREAS, COUNTY and CITY desire to make additional changes to their comprehensive
agreement set forth in the 2006 MOU, and to extend the term of their comprehensive agreement for an
additional 15 years; and
21-0779 Agreement No. 21-361
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WHEREAS, due to the age of the 2006 MOU and the desire to make additional changes,
COUNTY and CITY have determined that it is in their best interests to entire into this RESTATED MOU,
which will supersede and replace the 2006 MOU; and
WHEREAS, COUNTY and CITY wish to continue to work together to develop a fair and equitable
approach to tax sharing and the encouragement of sound economic growth; and
WHEREAS, in order to encourage economic development and environmentally sound land use
planning, it is important that any tax sharing among COUNTY and CITY be determined in advance and
that such arrangements not be fiscally detrimental to either COUNTY or CITY; and
WHEREAS, COUNTY and CITY recognize the importance of COUNTY and CITY services and
are prepared to cooperate in an effort to address COUNTY’s and CITY’s fiscal problems; and
WHEREAS, through annexation CITY provides the opportunity for economic growth and
development to support public services for CITY and COUNTY; and
WHEREAS, close cooperation between COUNTY and CITY is necessary to maintain the quality
of life throughout Fresno County and deliver needed services in the most cost-efficient manner to all CITY
and COUNTY residents; and
WHEREAS, COUNTY recognizes the need for orderly growth within and adjacent to CITY and
for supporting appropriate annexations and promoting the concentration of development within CITY; and
WHEREAS, CITY recognizes that development within CITY limits may also have the effect of
concentrating revenue-generating activities within CITY rather than in unincorporated areas and that, as
a result of Proposition 13 and its implementing legislation, annexation by CITY of unincorporated territory
can result in a loss of revenue sources for COUNTY unless there is significant new development activity
as a result of annexation; and
WHEREAS, annexation which results in the development of urban uses in response to a clearly
demonstrated community demand is appropriate and well planned and can be a valuable tool in the
physical and economic development of CITY and COUNTY; and
WHEREAS, the parties recognize that COUNTY General Plan Goal LU-G provides that COUNTY
will direct urban growth and development within the cities spheres of influence to existing incorporated
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cities and will ensure that all development in city fringe areas is well planned and adequately served by
necessary public facilities and infrastructure and furthers countywide economic development goals; and
WHEREAS, the parties recognize that when urban growth and development is directed to cities
there is a lost opportunity of development by COUNTY in the unincorporated area and that sharing of
local sales and use taxes generated by such development would serve as a tool for the COUNTY to
participate in receiving a share of that new revenue; and
WHEREAS, it is the interest of the parties to require all new urban development to pay a roughly
proportionate share of the cost of urban services and infrastructure created by the development, whether
it occurs in the CITY or in the adjacent unincorporated area of the CITY's sphere of influence.
WHEREAS, the parties recognize the importance to the economy of the region and the continued
improvement of agricultural operations in the County of protecting and preserving the University of
California Kearney Research Center and the United States Department of Agriculture Agricultural
Research Center and that the parties continue to work together towards the protection of these
Agricultural Research Centers.
NOW, THEREFORE, COUNTY and CITY hereby agree as follows:
ARTICLE I
DEFINITIONS
Unless the particular provision or context otherwise requires, the definitions contained in this
article and in the Revenue and Taxation Code shall govern the construction, meaning, and application of
words used in this RESTATED MOU.
1.1 "Base property tax revenues" means property tax revenues allocated by tax rate
equivalents to all taxing jurisdictions as to the geographic area comprising a given tax rate area annexed
in the fiscal year immediately preceding the tax year in which property tax revenues are apportioned
pursuant to this RESTATED MOU, including the amount of State reimbursement of the homeowners' and
business inventory exemptions.
1.2 Except as provided in Section 6.1, "property tax increment" means revenue from the
annual tax increment, as "annual tax increment" is defined in Section 98 of the Revenue and Taxation
Code, attributable to the tax rate area for the respective tax year.
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1.3 "Substantial development" or "substantially developed" means real property which, prior
to annexation, has an improvement value to land value ratio equal to or greater than 1.25:1, as of the lien
date in the fiscal year in which the annexation becomes effective under the Cortese-Knox Local
Government Reorganization Act, and on and after January 1, 2000, the Cortese-Knox-Hertzberg Local
Government Reorganization Act of 2000.
1.4 "Property tax revenue" means base property tax revenue, plus the property tax increment
for a given tax rate area.
1.5 "Tax apportionment ratio" means the tax apportionment ratio of the parties for a given
fiscal year and shall be ascertained by dividing the amount determined for each party pursuant to
Revenue and Taxation Code Sections 96(a) or 97(a), whichever is applicable, by that party's gross
assessed value, and by then dividing the sum of the resulting tax rate equivalents of both parties into
each party's tax rate equivalent to produce the tax apportionment ratio.
1.6 "Tax rate equivalent" means the factor derived for an agency by dividing the property tax
levy for the prior fiscal year computed pursuant to Section 97 of the Revenue and Taxation Code by the
gross assessed value of the agency for the prior fiscal year.
1.7 "Effective Date" shall mean the last date that all the parties hereto execute this Amended
and RESTATED MOU between COUNTY and CITY.
1.8 "Urban development" or "urban type development" shall mean development not allowed
in areas designated Agriculture, Rural Residential or River Influence in COUNTY's General Plan or its
applicable community plans as of the Effective Date of this RESTATED MOU.
ARTICLE II
ANNEXATIONS BY CITY
2.1 Any annexations undertaken by CITY following the date of the execution of this
RESTATED MOU shall be consistent with both the terms of this MOU and the standards (hereinafter
"The Standards" or "Standards") as set forth in Exhibit "1", attached hereto and incorporated by reference
herein as if set fourth fully at this point. This RESTATED MOU shall not apply to annexations proposed
by CITY which are not in compliance with its terms or which fail to meet The Standards. If a proposed
annexation is not in compliance with the terms of this RESTATED MOU, including but not limited to, The
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Standards, then the property tax exchange provisions of Article III of this RESTATED MOU shall not
apply in regards to that proposed non-complying annexation. An exchange of property tax revenues
between COUNTY and CITY for any such non-complying annexation shall be handled individually
pursuant to subdivision (e) of Section 99 of the Revenue and Taxation Code or by the negotiation of a
standalone property tax exchange agreement between COUNTY and CITY.
2.2 In order to encourage the orderly processing of proposed annexations, CITY shall, at least
thirty (30) days prior to filing any annexation proposal with the Fresno County Local Agency Formation
Commission (hereinafter "LAFCO"), notify COUNTY of its intention to file such proposal and the date
upon which CITY expects such proposal to be filed. Upon COUNTY's request, CITY agrees to meet with
COUNTY to review whether its proposed annexation complies with The Standards. Within fifteen (15)
days after the date COUNTY receives notice by the CITY of its annexation proposal, COUNTY shall notify
CITY in writing if it has determined that the proposed annexation is inconsistent with The Standards.
Upon receipt of such notification, CITY may either modify the proposal to COUNTY's specifications or
adopt a resolution finding that the proposed annexation is, in CITY's determination, consistent with The
Standards. If County fails to give such notice within the fifteen-day period, the annexation shall be
conclusively deemed consistent with all provisions of this article and The Standards.
2.3 If CITY adopts a resolution making the findings described in Section 2.2, then COUNTY
may challenge such findings by appropriate court action filed within thirty (30) days of receipt of written
notice of the adoption of CITYs resolution. The court shall independently review the evidence and
determine whether the proposed annexation is consistent with the Standards.
As an alternative to a judicial challenge by the COUNTY, the parties may within the aforesaid
thirty (30) day period mutually agree in writing to arbitrate their dispute through proceedings conducted
in accordance with the rules established by the American Arbitration Association. The parties upon
agreeing to arbitrate will proceed with arbitration in a timely manner. The arbitrator hearing the matter
shall independently review the evidence and determine whether the proposed annexation is consistent
with The Standards.
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Costs incurred by the prevailing party, either in court proceedings or the arbitration proceedings,
shall be paid by the non-prevailing party. The parties agree that CITY shall not proceed to LAFCO with
the proposed annexation until the dispute is finally resolved either by court or arbitration proceedings. If
CITY attempts to proceed with such proposed annexation prior to the expiration of the period in which
COUNTY may file its court action or agree to arbitrate, or prior to the final conclusion of such court or
arbitration proceeding, then the property tax exchange provisions of Article III of this RESTATED MOU
shall not apply to that proposed annexation.
Notwithstanding the foregoing, the CITY may proceed to LAFCO under this RESTATED MOU if
court or arbitration proceedings are not completed within thirty (30) days after the filing thereof provided,
however, that LAFCO in its resolution of approval, at the request of the CITY, conditions the completion
of the annexation upon the Executive Officer's prior receipt of a certified copy of the document evidencing
the finality of the aforesaid court or arbitration proceedings determining that the proposed annexation is
consistent with Exhibit "1" attached hereto, or alternatively, receipt of a written stipulation of the CITY and
COUNTY agreeing that a master property tax agreement still exists permitting the completion of such
proposed annexation. If LAFCO declines to include the aforesaid condition, or CITY fails to timely request
such condition, no property tax exchange agreement as required by section 99 of the Revenue and
Taxation Code shall exist between CITY and COUNTY as to that proposed annexation. If CITY
nevertheless attempts to proceed with the annexation, such action on the part of the CITY shall also be
deemed good cause for the COUNTY at its option to terminate this RESTATED MOU.
2.4 For the purpose of promoting economic development and job creation, an Alternate
Standard for Annexation for industrial or regional commercial uses is hereby created. In the place of The
Standards set forth in Exhibit 1, the Alternate Standard for Annexation shall apply to and govern the
review of annexation proposals for industrial or regional commercial uses. Annexation proposals for
industrial/regional commercial uses shall include a conceptual development plan, as described herein.
The conceptual development plan shall consist of the economic objectives to be achieved, the service
and financing strategy and its schedule, and shall include a map of the proposed prezoning. The
conceptual development plan's schedule shall include milestones for major project components, to
measure the progress of the project. Due to the complexity of such projects the development schedule
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for planning and implementation may reasonably require a period of from five to ten years. The
annexation proposal shall be submitted to and reviewed by the COUNTY pursuant to Section 2.2.
Annexation proposals that comply with the criteria of this Section 2.4 shall, be deemed to comply with
Section 2.1. The annexation application to be submitted to LAFCO shall be considered complete upon
adoption of the prezoning by the CITY. COUNTY and CITY agree to meet annually to review the progress
toward the achievement of the economic development objectives and to identify ways to promote mutual
economic development objectives. The proposed annexation made under this Alternate Standard for
Annexation described in this Section 2.4 should not create islands and annexation boundaries must
ultimately minimize creation of peninsulas, corridors, or other distortion of boundaries.
2.5 Section 2.4 shall be deemed suspended if CITY rezones an area that was annexed using
the Alternate Standard for Annexation to a zone other than Industrial/Regional Commercial without
COUNTYs consent.
ARTICLE III
EXCHANGE OF PROPERTY TAX REVENUES TO BE
MADE UNDER SECTION 99 OF THE REVENUE AND TAXATION CODE
3.1 The property tax revenues collected in relation to annexations covered by the terms of this
RESTATED MOU shall be apportioned between CITY and COUNTY as set forth in Sections 3.2 and 3.3
below. The parties acknowledge that, pursuant to Sections 54902, 54902.1 and 54903 of Government
Code and Section 99 of the Revenue and Taxation Code, the distribution of such property tax revenues
will not be effective until the revenues are collected in the tax year following the calendar year in which
the statement of boundary changes and the map or plat is filed with the County Assessor and the State
Department of Tax and Fee Administration.
3.2 In regards to the annexation of real properties which are not considered substantially
developed at the time of annexation, COUNTY will retain all of its base property tax revenue upon
annexation. The amount of the property tax increment for special districts whose services are assumed
by CITY shall be combined with the property tax increment of the COUNTY, the sum of which sha ll be
allocated between CITY and COUNTY pursuant to the following tax apportionment ratio:
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COUNTY: 63%
CITY: 37%
Effective July 1, 2022 these property tax-sharing ratios shall be as shown in Exhibit "2".
3.3 In regards to the annexation of real properties which are considered substantially
developed at the time of annexation, property tax revenue (base plus increment) will be reallocated as
follows: a detaching or dissolving district's property tax revenue (base plus increment) shall be combined
with COUNTY's and the sum of which shall be allocated between CITY and COUNTY pursuant to the
ratio set forth in Section 3.2.
ARTICLE IV
DEVELOPMENT WITHIN AND ADJACENT
TO CITY’S SPHERE OF INFLUENCE
AND COUNTY CAPITAL FACILITIES FEES
4.1 COUNTY shall not approve any discretionary development permits for new urban
development within CITY's sphere of influence unless the development shall have first been referred to
CITY for consideration of possible annexation. If CITY does not, within sixty (60) days of receipt of notice
from COUNTY, adopt a resolution of application to initiate annexation proceedings before LAFCO,
COUNTY may approve development permits for that new urban development. COUNTY's approval shall
take into consideration CITY's general plan and be consistent with COUNTY's general plan policies,
provided, that the development is orderly and does not result in the premature conversion of agricultural
lands.
4.2 Within the CITY’s sphere of influence, COUNTY shall require compliance with
development standards that are comparable to CITY’s and charge fees reflecting the increased
administrative and implementing cost where such CITY standards are more stringent than COUNTY’s.
These requirements shall apply to discretionary development applications approved by COUNTY. For
purposes of this Agreement, “discretionary development applications” shall mean General Plan
Amendments, Rezoning, Tentative Tract Maps, Tentative Parcel Maps, Conditional Use Permits, Director
Review and Approvals, and Variances.
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4.3 CITY development fees shall be charged for any discretionary development applications
to be approved by the COUNTY within CITY's sphere of influence. To establish or amend CITY
development fees, CITY shall conduct a public hearing and notify property owners in accordance with
State Law. At the conclusion of that hearing, CITY shall adopt a resolution describing the type, amount,
and purpose of CITY fees to be requested for COUNTY adoption.
4.4 CITY shall transmit the adopted resolution to the COUNTY for its adoption of the fees.
CITY shall include a draft ordinance for COUNTY's adoption with appropriate supporting documentation
or findings by the CITY demonstrating that the fees comply with the Mitigation Fee Act (Section 66000,
and following, of the Government Code) and other applicable State Law requirements. CITY fees may
also include CITY's and COUNTY's increased administrative costs and inspection charges, provided
those costs similarly comply with the Mitigation Fee Act and other applicable State Law requirements.
4.5 COUNTY shall collect the applicable CITY development fees for infrastructure and
facilities at the time of final map approval or issuance of building permits as established by the fee
schedule. Or, COUNTY shall require the applicant to present a voucher issued by CITY evidencing the
payment of the fees directly to CITY, or written confirmation by CITY that fees are inapplicable. If
COUNTY imposes and collects fees on behalf of CITY, COUNTY shall transfer the fees to CITY at the
earliest time legally permitted.
4.6 CITY shall give COUNTY at least thirty (30) days notice before implementing any new
fees or an amendment to existing fees. Notwithstanding this Section 4.6, or any other provision of this
MOU, CITY shall be solely responsible for determining the amount of the fees and setting them in
accordance with law. This Section 4.6 shall not be construed as a representation by COUNTY as to the
propriety of the fees or the procedures used in setting them.
4.7 CITY shall hold harmless, defend and indemnify the COUNTY from all claims, demands,
litigation of any kind whatsoever arising from disputes relating to the fees, the enactment of or the
collection of CITY development fees.
4.8 If COUNTY adopts capital facilities fees, CITY shall require that an applicant for any land
use entitlement or permit within CITY shall pay all COUNTY, public facilities fees applicable to the
entitlement or permit on behalf of the COUNTY. At the COUNTY's request, CITY shall either timely
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impose and collect all such fees or shall require the applicant to present a voucher issued by COUNTY
evidencing the payment of fees directly to COUNTY. If adopted by COUNTY, the fees are to mitigate
the impact of development on required COUNTY facilities and services including, but not limited to, the
criminal justice system, health, social services, parks, transportation and library. If CITY imposes and
collects fees on behalf of COUNTY, CITY shall transfer the fees to COUNTY at the earliest time legally
permissible to do so. COUNTY may impose new fees and amend existing fees from time to time in its
sole discretion. COUNTY shall give CITY at least thirty (30) days’ notice before implementing any new
fees or an amendment to existing fees. Notwithstanding this Section 4.8, or any other provision of this
RESTATED MOU, COUNTY shall be solely responsible for determining the amount of the fees and
setting them in accordance with law. This Section 4.8 shall not be construed as a representation by CITY
as to the propriety of the fees or the procedures used in setting them. If COUNTY imposes capital
facilities fees and CITY collects capital facilities fees on behalf of COUNTY, this RESTATED MOU serves
as a joint powers agreement under Chapter 5 of Division 7 of Title 1 (commencing with Section 6500) of
the Government Code for the purpose of CITY’s collection of capital facilities fees on behalf of COUNTY.
4.9 COUNTY shall hold harmless, defend and indemnify the CITY from all claims, demands,
litigations of any kind whatsoever arising from disputes relating to the enactment or collection of COUNTY
capital facilities fees.
4.10 COUNTY shall support urban unification and consolidation of urban services. To this end,
COUNTY shall oppose the creation of new governmental entities within CITY's sphere of influence,
except for such entities that may be necessary to address service requirements that cannot be addressed
by annexation to CITY. CITY and COUNTY will support transition agreements with current service
providers which recognize the primary role of cities as providers of urban services and where current
service providers have participated in service master planning.
4.11 Within CITY's sphere of influence and for the two-mile area beyond that sphere of
influence, COUNTY and CITY agree that, in the early stages of preparation of zone changes, circulation
proposals and general plan amendments for new urban development, they shall consult and formally
notify at the staff level in such fashion as to provide meaningful participation in the policy formulation
process, and shall likewise consult on other policy changes which may have an impact on growth or the
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provision of urban services. CITY shall also be given the opportunity to respond to COUNTY before the
final document is prepared for presentation to COUNTY's Planning Commission. COUNTY agrees that
it will solicit comments from CITY in the preparation of any Initial Study required by the California
Environmental Quality Act undertaken within the area. If CITY determines such urban development may
have a significant effect on the environment, the COUNTY shall require an Environmental Impact Report
to be prepared if a fair argument can be made in support of the CITY's finding.
Notwithstanding anything to the contrary herein, because of state-mandated directives, including
without limitation, the state Regional Housing Needs Allocation, COUNTY may consider approval of
urban development in areas that are not currently planned for urban development, in order to meet its
obligations under a state-mandate directive.
4.12 Any change in the CITY's sphere of influence proposed by either COUNTY or CITY which
would modify the area depicted in Exhibit "3" requires the mutual consultation of both parties prior to
submission to LAFCO.
ARTICLE V
IMPLEMENTATION OF SALES TAX
REVENUE COLLECTION
5.1 Pursuant to the Bradley Burns Uniform Local Sales and Use Tax Law, Part 1.5, Division
2, of the Revenue and Taxation Code (commencing with Section 7200), CITY shall, concurrent with the
execution of this RESTATED MOU, amend its local sales and use tax ordinance, as needed, to comply
with the terms of this RESTATED MOU. The amendment of CITY’s sales and use tax ordinance
(hereinafter referred to as “Ordinance Amendment”) described in this Section 5.1 shall be timely
forwarded to the State Department of Tax and Fee Administration so that it will become operative as of
the first July 1 following the CITY reaching the threshold forth in subsections 5.2.1 and 5.2.2 The
Ordinance Amendment shall enable COUNTY, pursuant to its sales and use tax ordinance, to collect a
portion of the sales and use tax revenues generated within the incorporated areas of CITY in accordance
with the applicable rate set forth on Exhibit 4", attached hereto and incorporated by reference as if set
forth fully at this point. The format of this amendment by CITY to its local sales and use tax ordinance
shall likewise provide as a credit against the payment of taxes due under such ordinance, an amount
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equal to any sales and use tax due to COUNTY.
5.2 Except as otherwise provided herein, CITY further agrees that the Ordinance Amendment
shall likewise provide for the periodic reallocation of additional sales tax revenues generated within the
incorporated areas of CITY in accordance with the schedule set forth on Exhibit "4". Each subsequent
incremental adjustment shall go into effect at the commencement of the fiscal year indicated. These
periodic adjustments shall enable COUNTY, pursuant to its sales and use tax ordinance, to collect that
portion of the sales and use tax revenues generated within the incorporated areas of CITY equal to the
applicable percentage as specified in Exhibit "4". These periodic adjustments shall automatically go into
effect provided that:
5.2.1 CITY receives sales tax revenues per capita in an amount greater than fifty percent
(50%) of the sales tax revenue per capita collected by all Fresno County cities when taken as
a group during the most recent fiscal year for which State Department of Tax and Fee
Administration information is available, then it hereby agrees to reallocated sales tax revenues
with COUNTY beginning in fiscal year 2021-22 in accordance with the provisions of this article;
and
5.2.2 CITY's annual sales tax revenue information is available for the State Department
of Tax and Fee Administration allows City to reallocate sales tax revenue at the percentage
designated in Exhibit "4" and still have a net increase in its remaining sales tax revenue when
compared with the fiscal year immediately preceding the fiscal year described above. The
periodic phase in of sales tax reallocation described herein shall be delayed from year-to-year
if CITY falls below the sales tax reallocation threshold as identified in Section 5.2. In those
years in which CITY does not meet the sales tax reallocation threshold, CITY's sharing
proportion shall continue at the same rate as in the last year in which CITY met or exceeded
the threshold. When, in a subsequent year, CITY again meets or exceeds the threshold, the
sharing proportion of CITY shall be at the next higher sharing proportion shown on Exhibit "4",
and the annual phase-in shall continue therefrom.
5.3 The Ordinance Amendment is intended to reduce CITY's sales tax rate from its then-
existing level to a level which thereby enables COUNTY, pursuant to its sales tax ordinance, to continue
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collecting those amounts set forth in the previous provisions of this article as well as the applicable
percentages set forth on Exhibit "4". In addition, each periodic adjustment is intended by the parties to
enable COUNTY to collect an amount equivalent to the applicable percentage specified in Exhibit "4".
5.4 Whenever CITY proposes an annexation of unincorporated territory which generates
“substantial sales tax revenue” (as defined in this section 5.4 below) for COUNTY, CITY, agrees to further
amend its local sales and use tax ordinance as set forth in this section. Notwithstanding the language of
subsections 5.2.1 and 5.2.2, this additional amendment shall become operative no later than the
commencement of the next calendar quarter following the date upon which such annexation is certified
as complete by the Executive Officer of LAFCO. This additional amendment shall decrease CITY 's sales
tax rate to yield an amount of substantial sales tax revenue being collected by COUNTY in the area to
be annexed, thus enabling COUNTY to increase its sales tax rate by a corresponding percentage which
shall continue to accrue to COUNTY throughout the term of this RESTATED MOU. Any such additional
amendment made by CITY pursuant to this section shall be cumulative and likewise preserve intact any
periodic adjustments previously implemented pursuant to this RESTATED MOU. Further, CITY agrees
that it shall not split or separate areas into smaller annexations for the purpose of, or having the effect of,
creating an annexation or annexations which, individually, do not generate substantial sales tax revenue,
but which would generate such revenue if combined. For purposes of this article, the term "substantial
sales tax revenue" shall be defined as sales tax revenue derived from taxable sales ·in the area annexed
equal to at least:
5.4.1 If only information for less than one fiscal year exists, then $100,000 in taxable
sales in the most recent quarter for which such information from the State Department of
Tax and Fee Administration is available in writing or electronic or magnetic media, and
projected to a full four quarters, at least
$400,000 in taxable sales.
5.4.2 If information for one or more years exists, then $400,000 in taxable sales in the
most recent year for which such information from the State Department of Tax and Fee
Administration is available in writing or electronic or magnetic media.
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5.5 If CITY fails to amend its sales tax ordinance as provided in section 5.1, or if the Ordinance
Amendment fails to provide for the ·periodic reallocation of additional sales tax revenues as provided in
section 5.2, the subsections therein, and Exhibit "4", or if CITY fails to further amend its sales tax
ordinance upon the annexation of unincorporated territory which generates substantial sales tax revenue
for COUNTY as provided in section 5.4, or if CITY splits or separates areas into smaller areas as
prohibited by section 5.4, then this RESTATED MOU shall immediately terminate and, in particular, no
master property tax exchange agreement under subdivision (d) of Section 99 of the Revenue and
Taxation Code shall exist between CITY and COUNTY.
5.6 CITY and COUNTY further agree that the annual report of the State Department of Tax
and Fee Administration and the Department of Finance Annual Population Estimates shall be used as
the data source for the purpose of calculating the per capita sales tax revenue pursuant to this
RESTATED MOU.
5.7 Application of the formula to be used in the allocation of revenues pursuant to section 5.2
is illustrated in Exhibit "5", attached hereto and incorporated by reference herein as if set forth fully at this
point.
ARTICLE VI
COUNTY AND CITY ASSURANCES ON USE OF REVENUE
6.1 COUNTY recognizes that certain revenue reallocated to it by this RESTATED MOU would
otherwise have been appropriated by CITY to meet demands for services. In light therefore, COUNTY
agrees to use such new revenue in order to maintain levels of COUNTY services that are supportive of
CITY services, unless the Federal or state governments materially reduce the level of funding for such
services. Examples of such COUNTY services include, but are not limited to, the criminal justice system,
public health, and other similar services.
6.2 CITY agrees to continue enforcement of laws which result in the collection of fines and
forfeitures.
ARTICLE VII
COOPERATIVE EFFORTS AT LEGISLATIVE REFORM
7.1 CITY and COUNTY agree to work jointly for state legislation and appropriations that would
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improve the fiscal condition of both CITY and COUNTY.
ARTICLE VIII
GENERAL PROVISIONS
8.1 Term of MOU
This RESTATED MOU shall commence as of the date of execution by COUNTY and CITY and
shall remain in effect for a period of fifteen (15) years, unless terminated prior to that time by mutual
agreement of the parties or as otherwise provided by the RESTATED MOU.
In addition, should all or any portion of this RESTATED MOU be declared invalid or inoperative
by a court of competent jurisdiction, or should any party to this RESTATED MOU fail to perform any of
its obligations hereunder, or should any party to this RESTATED MOU take-any action to frustrate the
intentions of the parties as expressed in this RESTATED MOU, then in such event, this entire RESTATED
MOU, as well as any ancillary documents entered into by the parties in order to fulfill the intent of this
RESTATED MOU, shall immediately be of no force and effect and, in particular, no property tax exchange
agreement, as required by Section 99 of the Revenue and Taxation Code, shall exist between the CITY
and COUNTY as to unincorporated property.
8.2 Geographic Application of RESTATED MOU
This RESTATED MOU shall apply only to the area identified as the City of Reedley’s Sphere of
Influence and the Future Growth Area as depicted in Exhibit 3. This RESTATED MOU shall not apply to
any sphere of influence beyond the area depicted in Exhibit 3 unless and until the parties mutually agree
to amend this RESTATED MOU.
8.3 Termination Due to Changes in Law
The purpose of this RESTATED MOU is to alleviate in part the revenue shortfall experienced by
COUNTY which may result from CITY's annexation of revenue-producing or potentially revenue-
producing properties located within the unincorporated area of COUNTY. The purpose of this RESTATED
MOU is also to enable CITY to proceed with territorial expansion and economic growth consistent with
the terms of existing law as mutually understood by the parties as well as to maximize each party's ability
to deliver essential governmental services. In entering into this RESTATED MOU, the parties mutually
assume the continuation of the existing statutory scheme for the distribution of available tax revenues to
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local government and that assumption is a basic tenet of this RESTATED MOU. Accordingly, it is mutually
understood and agreed that this RESTATED MOU may, by mutual agreement be terminated should
changes occur in statutory law, court decisions or state administrative interpretations which negate the
basic tenets of this RESTATED MOU.
8.4 Modification
This RESTATED MOU and all of the covenants and conditions set forth herein may be modified
or amended only by a writing duly authorized and executed by COUNTY and CITY.
8.5 Enforcement
COUNTY and CITY each acknowledge that this instrument cannot bind or limit themselves or
each other or their future governing bodies in the exercise of their discretionary legislative power.
However, each binds itself that it will insofar as is legally possible fully carry out the intent and purposes
hereof, if necessary by administrative action independent of ordinances, and that this RESTATED MOU
may be enforced by injunction to the extent allowed by law.
8.6 Entire Agreement and Supersession
With respect to the subject matter hereof, this RESTATED MOU supersedes any and all previous
negotiations, proposals, commitments, writings, and understandings of any nature whatsoever between
COUNTY and CITY except as otherwise provided herein.
8.7 Notice
All notices, requests, certifications or other correspondence required to be provided by the parties
to this RESTATED MOU shall be in writing and shall be delivered by first class mail or an equal or better
form of delivery to the respective parties at the following addresses:
COUNTY CITY
County Administrative Officer City Manager
County of Fresno City of Reedley
Hall of Records, Room 300 City Hall
2281 Tulare Street 1717 9th Street
Fresno, CA 93721 Reedley, CA 93630
8.8 Renegotiation
If COUNTY enters into an agreement or memorandum of understanding, which includes a master
property tax exchange agreement under subdivision (d) of Section 99 of the Revenue and Taxation Code,
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with another city that has terms and conditions more favorable in the aggregate to that city than those
terms and conditions contained herein, COUNTY agrees that it will negotiate such terms and conditions
upon written request from CITY, with the intent of offering that more favorable agreement. Negotiations
shall conclude thirty (30) days from the date of receipt of notice by COUNTY and, if agreement is
tentatively reached during that period, the legislative bodies of the parties shall approve any such
amendment within thirty (30) days following the date of the tentative agreement. COUNTY and CITY are
not required to reach agreement.
8.9 Notice of Breach
Prior to this RESTATED MOU being terminated as expressly provided in Sections 5.5, 6.2.2 and
9.1, COUNTY shall provide notice to CITY of such breach, and CITY shall comply with the terms and
conditions of this RESTATED MOU within thirty (30) days of receipt of notice. If CITY fails to timely
comply this RESTATED MOU shall terminate as provided herein. During the thirty (30) day notice period
and until CITY certifies in writing that they are in compliance and COUNTY agrees in writing, no property
tax exchange agreement, as required by Section 99 of the Revenue and Taxation Code, shall exist
between COUNTY and CITY with respect to any pending annexations.
In like manner the CITY and AGENCY shall give COUNTY thirty (30) days written notice and
opportunity to cure any alleged breach of the RESTATED MOU on the part of the COUNTY.
8.10 No Waiver of Government Claims Act
For all claims arising from or related to this RESTATED MOU, nothing in this RESTATED MOU
establishes, waives, or modifies any claims presentation requirements or procedures provided by law,
including the Government Claims Act (Division 3.6 of Title 1 of the Government Code, beginning with
section 810).
8.11 Governing Law and Venue
This RESTATED MOU shall be administered and interpreted under the laws of the State of
California. Jurisdiction of litigation arising from this RESTATED MOU shall only be in Californ ia. Any
action brought to interpret or enforce this RESTATED MOU, or any of the terms or conditions hereof,
shall be brought and maintained in the Fresno County Superior Court.
///
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8.12 Authorization to Execute
COUNTY and CITY each represent and warrant that the individuals signing this RESTATED MOU
are duly authorized to do so by their respective legislative bodies and that their signatures on this
RESTATED MOU legally bind COUNTY and CITY to the terms of this RESTATED MOU.
8.13 Counterparts
This RESTATED MOU may be signed in counterparts, each of which is an original, and all of
which together constitute this RESTATED MOU.
(Signature page follows.)
1 IN WITNESS WHEREOF , the parties hereto have executed this RESTATED MOU in the County
2 of Fresno, State of California , on the last date set forth below.
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County of Fresno , a Political (igt~~~ oAe T ate of California
By / j 't-1,, --,----------
Steve Brandau , Chairman of the
Board of Supervisors of the County of Fresno
Attest:
Bernice E. Seidel
Clerk of the Board of Supervisors
County of Fresno, State of California
By: --i.&~l\ow--· ~~===1--=~-
Deputy -=--=-u
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City of Reedley , a Municipal
Corporation of the State of California (CITY)
By: ~-Q:_~
Mary Fast , Mayor, City of Reedley
Date A<jUsl/0 J;oz/
Attest:
Ruthie Greenwood
City Clerk
By ~~
Ruthie Greenwood , c5tyeeik
City of Reedley
Nicol ~ Zieba
By : _f _ l-_________ _
Nicole R. Zieb , City Manager
City of Reedley
Approved as to Legal Form
City Attorney, City of Reedley
Bvd&rt -~
Scott G . Cross , City Attorney
City of Reedley
EXHIBIT 1
STANDARDS FOR ANNEXATION
• The proposal must be consistent with the adopted sphere of Influence of the city and not
conflict with the goals and policies of the Cortese-Knox-Hertzberg Act.
• The proposal must be consistent with city general and specific plans, including adopted
goals and policies.
• Pursuant to CEQA, the proposal must mitigate any significant adverse effect on continuing
agricultural operations on adjacent properties, to the extent reasonable and consistent with
the applicable general and specific plan.
• A proposal for annexation is acceptable if one of the following conditions exist:
1. There is existing substantial development provided the City confines its area requested
to that area needed to include the substantial development and create logical
boundaries.
2. Development exists that requires urban services which can be provided by the City.
3. If no development requiring urban services exists, at least 25% of the area proposed for
annexation has:
a) Approved tentative subdivision map (single-family residential)
b) Approved site plan (for other uses including multi-family)
4. The annexation is to fulfill the city’s Regional Housing Needs Allocation (RHNA)
obligation which otherwise cannot be accommodated on lands currently within the city’s
incorporated boundary.
5. The annexation includes the full width of road right-of-way along the annexation
boundary and does not result in the creation of bypassed segments of existing road
rights-of-way.
• The proposal would not create islands. Boundaries must ultimately minimize creation of
peninsulas and corridors, or other distortion of boundaries.
For any of the following circumstances listed below, a proposal for annexation is presumed to
comply with all standards for annexation:
• The request for annexation is by a city for annexation of its own publicly-owned property for
public use.
• The request for annexation is by a city in order to facilitate construction of public
improvements or public facilities which otherwise could not be constructed.
• The request for annexation is to remove an unincorporated island, substantially surrounded
area, or otherwise address existing peninsulas and/or irregular boundaries.
• The annexation is intended to mitigate or otherwise comply with standards/conditions
required by another agency with respect to another development annexation.
EXHIBIT 2
Effective July 1, 2021, the property tax sharing ratios shall be as follows:
County City Effective Date
63.0% 37.0% July 1, 2022
63.0% 37.0% July 1, 2023
63.0% 37.0% July 1, 2024
63.0% 37.0% July 1, 2025
63.0% 37.0% July 1, 2026
63.0% 37.0% July 1, 2027
63.0% 37.0% July 1, 2028
63.0% 37.0% July 1, 2029
63.0% 37.0% July 1, 2030
63.0% 37.0% July 1, 2031
63.0% 37.0% July 1, 2032
63.0% 37.0% July 1, 2033
63.0% 37.0% July 1, 2034
63.0% 37.0% July 1, 2035
63.0% 37.0% July 1, 2036
FLORAL
I
ALTAREEDSOUTH
G
PARLIER
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F
LAC JACDINUBA
E
FLORAL
K ENGLEHARTL
D BUTTONWILLOWEASTC
PEDERSONJ
DUFFFRANKWOODELEVENTH RIOHUNTSMAN TENTHZUMWALTRIO VISTAKINGS RIVEREARLY
M
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KLEINNORTH
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SUNSETB
CHURCHPECANTHIRTEENTHTOBUKINGS
EYMANN
LINDEN
LILAC
LINCOLNHOPE
HERBERT
WALLACECYPRESSTHOMPSON
EIGHTHGUM COLUMBIARUPERTEL DORADO
DAVIS
ANN
SPRINGFIELD
LOCKE
WASHINGTON
CURTIS
BEECH
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UPPE
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CAROB
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JEFFERSON
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MUIR
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PONDEROSA
APPLEHOLLYELM
STEVENJUSTINEWALKER
ELIZABETHWILLOW GLENNCONCORDSIXTEENTHBLOSSOMEVENING GLOWHOLLYWOODDAYSHAASPEN
FLORALRIO VISTA KADYMANNING
ASPEN
KINGS RIVERDINUBA
SOUTH
PEDERSONKLEINHOPECURTIS
HUNTSMAN
DUFF
CYRIERKADYCOLUMBIAKLEINEASTDINUBA
SOUTH
STEVENHOLLYWOODSUNSETPALM
CAROB
HUNTSMAN
MYRTLE
NORTH
CAROB
RIVERVIEWDINUBA EASTEARLYHANEY
FRANKWOODFLORAL KLEINCURTIS
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R
Prepared by: GSAMANOG:\4360Devs&Pln\GIS\Maps\Specificµ0 0.35 0.7 1.05 1.40.175 Miles
CITY OF REEDLEY Department of Public Works and PlanningDevelopment Services DivisionReedley City Limits
City of Reedley Sphere of Influence
Future Growth Area 413.31 Acres REEDCENTRAL
COLUMBIAFRANKWOODAMERICAN
GOODFELLOW
AMERICAN
TULARE COUNTY
REEDLEY AIRPORT EXHIBIT 3
EXHIBIT 4
Effective July 1, 2021, the Sales Tax Revenue Sharing Proportion shall be as follows:
YEAR CITY
1 5%
2 5%
3 5%
4 5%
5 5%
6 5%
7 5%
8 5%
9 5%
10 5%
11 5%
12 5%
13 5%
14 5%
15 5%
City
Sales Tax
Revenue
2017 - 2018
Population
January 1, 2018
Per Capita
Tax Revenue
2017 - 2018
Sales Tax
Revenue
2018 - 2019
Population
January 1, 2019
Per Capita
Tax Revenue
2018 - 2019
Meets 50%
Criteria
2017 - 2018
Meets 50%
Criteria
2018 - 2019
Growth
over 1/2%
Sales Tax
Revenue
Growth
A B C D E F G F I J
Clovis 20,088,192$ 113,501 176.99$ 21,398,962$ 116,609 183.51$ A A Yes 6.53%
Coalinga 795,842$ 16,516 48.19$ 946,569$ 16,944 55.86$ B B Yes 18.94%
Firebaugh 887,447$ 7,893 112.43$ 825,341$ 7,980 103.43$ A A No -7.00%
Fowler 1,290,773$ 6,161 209.51$ 1,415,099$ 6,220 227.51$ A A Yes 9.63%
Fresno 86,000,524$ 536,593 160.27$ 91,798,987$ 542,012 169.37$ A A Yes 6.74%
Huron 174,745$ 7,281 24.00$ 182,158$ 7,302 24.95$ B B Yes 4.24%
Kerman 1,913,749$ 15,335 124.80$ 1,981,109$ 15,767 125.65$ A A Yes 3.52%
Kingsburg 975,836$ 12,397 78.72$ 1,141,664$ 12,551 90.96$ A A Yes 16.99%
Mendota 611,472$ 12,201 50.12$ 674,507$ 12,278 54.94$ B B Yes 10.31%
Orange Cove 176,743$ 9,443 18.72$ 225,323$ 9,460 23.82$ B B Yes 27.49%
Parlier 424,544$ 15,460 27.46$ 444,697$ 15,658 28.40$ B B Yes 4.75%
Reedley 1,687,854$ 25,797 65.43$ 1,755,297$ 25,873 67.84$ B B Yes 4.00%
Sanger 2,320,636$ 26,418 87.84$ 2,325,388$ 27,005 86.11$ A A No 0.20%
San Joaquin 185,302$ 4,124 44.93$ 252,989$ 4,144 61.05$ B B Yes 36.53%
Selma 5,515,388$ 24,327 226.72$ 6,482,913$ 24,402 265.67$ A A Yes 17.54%
Sales Tax Revenue
Total All Cities 123,049,047$ 833,447 131,851,003$ 844,205
Per Capita All Cities 147.64$ 156.18$
50% Minimum 73.82$ 78.09$
170,813 170,990
Table 1: Sales Tax Revenue Allocation Application FY 2018-19 Data
Unincorporated Population
Total County Population
Sales Tax Revenues: Columns A & D, Source: State Board of Equalization Annual Report Statistical Apendix; Fiscal Year Data Available in January of Next Calender Year
Population Data: Columns B & E, Source: Source State Department of Finance January 1, Population Estimates; Available in May of that Calender Year
Per Capita Sales Tax All Cities (FY 2017-18) Sum Collumns A & B. Then divide the column A summed total by the column B summed total. The Result is listed in Column C as "Per Capita Cities"
Per Capita Sales Tax All Cities (FY 2018-19) Sum Collumns D & E. Then divide the column D summed total by the column E summed total. The Result is listed in Column F as "Per Capita Cities"
50% Minimum Criteria: The Pervious Calculations divided by 2. Then a comparison of this number with the numbers in collumns C & F is made. Results are reflected in columns G & H . "A" means above, "B" Below the Criteria.
Sales Tax Revenue Growth: Column J; Compute percentage growth of Sales Tax Revenue: Change in Sales Tax Revenue in Column D compared to Column A.
Growth Criteria: If the Sales Tax Revenues of the city grew by at least 1/2%, the results are reflected in column I with a "YES"EXHIBIT 5