HomeMy WebLinkAboutAgreement A-17-562 with City of Sanger.pdf
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FIRST AMENDMENT TO THE AMENDED AND RESTATED
MEMORANDUM OF UNDERSTANDING BETWEEN
THE COUNTY OF FRESNO AND THE CITY OF SANGER
This First Amendment to the Amended and Restated Memorandum of Understanding
(“First Amendment”), executed on this _____ day of _______________, 2017, (the “Effective
Date”), by and between the County of Fresno, a political subdivision of the State of California
(hereinafter referred to as “County”) and the City of Sanger, a municipal corporation of the
State of California (hereinafter referred to as “City”). County and City are each a “Party” to this
First Amendment and are sometimes collectively referred to as “the Parties” to this First
Amendment.
RECITALS:
WHEREAS, the Parties previously entered into a comprehensive agreement covering
development, annexations, sales taxes, property taxes, redevelopment and other matters,
which is entitled “Amended and Restated Memorandum of Understanding Between the County
of Fresno, the City of Sanger, and the Sanger Redevelopment Agency,” dated December 13,
2005, (hereinafter “MOU”); and
WHEREAS, the Sanger Redevelopment Agency was dissolved on February 1, 2012, as
a result of ABx1 26 (“Dissolution Law”), as amended, and the City of Sanger is the Successor
Agency to the former Sanger Redevelopment Agency (SRA), and the SRA is no longer a party
to the MOU; and
WHEREAS, Article IX (General Provisions), Section 9.8 (Renegotiation) provides that if
County enters into an MOU with another City that has terms and conditions more favorable in
the aggregate to that city, County agrees that it will negotiate such terms and conditions upon
written request from City; and
WHEREAS, on July 24, 2017, City notified County of its request to modify the MOU to
include provisions similar to those contained in Article V, Section 5.4 of the City of
Fowler/County MOU relating to substantial sales tax generating uses; and
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WHEREAS, the County has evaluated City’s request and agrees to the proposed
amendment; and
WHEREAS, the parties recognize that this First Amendment to the MOU is necessary to
accommodate the proposed amendment.
NOW, THEREFORE, County and City hereby agrees to amend the MOU as
follows:
AMENDMENT I TO MOU
The MOU is amended as follows:
1. Section 5.4 of the MOU is hereby amended to read in its entirety as follows:
“Whenever CITY proposes an annexation of unincorporated territory which
generates substantial sales tax revenue 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 the 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
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"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 Board of Equalization 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 exist, then $400,000 in taxable
sales in the most recent year for which such information from the
State Board of Equalization is available in writing or electronic or
magnetic media.
5.4.3 Modified Calculation for Area Depicted in Exhibit 6 – Whenever
CITY proposes an annexation of unincorporated territory identified
which generates substantial sales tax revenue for COUNTY (as
defined herein), as depicted in Exhibit 6, and CITY uses the
provisions and requirements of Section 2.4 of this MOU (An
Alternate Standard for Annexation for Industrial and Regional
Commercial uses) to process said annexation, the substantial sales
tax-sharing provisions for that area shall be modified using the
distribution schedule delineated below and phased out over a period
of six years as follows:
First year. COUNTY receives 5% base plus 100% of local sales tax revenue
generated by substantial sales tax generator. CITY receives no
revenue from substantial sales tax generator.
Second Year. COUNTY receives 5% base plus 80% of local sales tax revenue
generated by substantial sales tax generator. CITY receives 20%
from substantial sales tax generator.
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Third Year. COUNTY receives 5% base plus 60% of local sales tax revenue
generated by substantial sales tax generator. CITY receives 40%
from substantial sales tax generator.
Fourth Year. COUNTY receives 5% base plus 40% of local sales tax revenue
generated by substantial sales tax generator. CITY receives 60%
from substantial sales tax generator.
Fifth Year. COUNTY receives 5% base plus 20% of local sales tax revenue
generated by substantial sales tax generator. CITY receives 80%
from substantial sales tax generator.
Sixth Year. COUNTY receives 5% base plus 0% of local sales tax revenue
generated by substantial sales tax generator. CITY receives 100%
from substantial sales tax generator. This distribution method
continues until the end of this agreement.
This adjustment shall comply with the requirements and procedures of the
California Board of Equalization. Any such distribution calculation made by CITY
pursuant to this subsection shall take into consideration actual sales tax
revenues collected within the substantial sales tax generator area in the last four
quarters as reported by the Board of Equalization and/or other reliable source to
be determined by the Fresno County Auditor-Controller/Treasurer-Tax Collector
to reflect actual sales tax revenues collected in the annexed area where the
substantial sales tax generator is located. The distribution calculation shall reflect
an increase or decrease in the revenue to be received by COUNTY in the
subsequent year depending on the actual sales tax revenue generated by the
substantial sales tax generator in the prior year. Nothing in this subsection 5.4
alters the duties of the parties pursuant to subsections 5.1 through 5.3, inclusive.”
2. Exhibit 6, attached hereto and incorporated herein by reference, is hereby
incorporated into and made part of the Amended and Restated Memorandum of
Understanding.
1 3. Unless expressly modified by the terms of this First Amendment, all other terms
2 of the MOU remain in full force and effect.
3 IN WITNESS WHEREOF, the Parties hereto have executed this First Amendment, on
4 the date set forth above.
5
COUNTY OF FRESNO, a Political 6 Subdivision of the State of California
("County")
By: l~j_ 7
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Brian Pacheco,Chairman
Board of Supervisors
ATTEST:
Bernice E. Seidel
Clerk to the Board of Supervisors
By: cJvA., 41=
Deputy
CITY OF SANGER, a Municipal
Corporation of the State of California
("Cit'¥! JL
By:· ·~ ro;ayor:citYOf s ger
ATTEST:
Becky Hernandez
City Clerk, City of Sanger
REVI,ED AND R. ECOMMENDED FOR
APPR ~ AL:1\\· .·
•
1 \~ \;\ () AA. / B.-~ 'J·~_; ~Ch~a, City Mana\ er
APPROVED AS TO LEGAL FORM:
Hilda Cantu-Montoy, City Attorney, City of
Sanger
By: tlf\"ldJewJk ~
Hilda Cantu-Montoy, C1ty Attorney
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Public Works and PlanningComputer Data Systems G:\4360CDS\GIS for PWP Admin\Bernard\Sanger MOU\Template.mxd9/20/2017
CITY OF SANGER SPHERE OF INFLUENCE
SUBSTANTIAL SALES TAXGENERATING AREA23.50 ACRES
Sanger MOU LOCATION MAP Exhibit 6
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