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MEMORANDUM OF UNDERSTANDING BETWEEN
THE COUNTY OF FRESNO AND THE CITY OF FRESNO
THIS MEMORANDUM OF UNDERSTANDING (MOU) is made and executed by and between the COUNTY of FRESNO, a political subdivision of the State of California (COUNTY) and the CITY OF FRESNO, a municipal corporation of the State of California (CITY).
WITNESSETH
WHEREAS, on January 06, 2003, COUNTY and CITY entered into a comprehensive agreement covering development, annexations, sales taxes, property taxes, and other matters, referred to as the 2003 Amended and Restated Memorandum of Understanding (2003 MOU); and
WHEREAS, the 2003 MOU served in part as COUNTY’s and CITY’s master property tax transfer agreement under Revenue and Taxation Code Section 99(d); and WHEREAS, on January 27, 2004, COUNTY and CITY entered into a Standalone Tax Sharing Agreement for the Copper River Ranch Reorganization to facilitate annexation to CITY of approximately 760 acres; and
WHEREAS, on May 20, 2008, COUNTY and CITY entered into a Standalone Tax Sharing Agreement for the McKinely -Hayes No. 3 Reorganization to facilitate annexation to CITY of approximately 295 acres; and
WHEREAS, on December 5, 2017, January 5, 2018, May 14, 2019, June 11, 2020, August 14, 2020, COUNTY and CITY executed amendments to the 2003 MOU, extending the term of the 2003 MOU, to provide additional time for the Parties to complete ongoing negotiations regarding a longer-term extension; and
WHEREAS, the Fifth Amendment , executed on August 14, 2020, affirmed that in the event of the 2003 MOU expiration, the terms of the 2003 MOU shall apply to all changes of organizations, including annexations, applications approved by CITY prior to expiration of 2003 MOU; and
WHEREAS, the 2003 MOU, as amended, expired August 29, 2020; and
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WHEREAS, on August 10, 2021, COUNTY and CITY executed a Standalone Tax Sharing Agreement for the Dakota -Hayes No. 4 Reorganization to facilitate annexation to CITY of approximately 89 acres; and
WHEREAS, on February 20, 2024, COUNTY and CITY executed a Standalone Tax Sharing Agreement for the Bullard-Maroa No. 3 Reorganization to facilitate annexation to CITY of approximately 0.85 acres; and
WHEREAS, COUNTY and CITY desire to execute a new MOU and due to the age of the 2003 MOU and the desire to make additional changes to the terms agreed to in the 2003 MOU, COUNTY and CITY have determined that it is in their best interests to enter into this new 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 urban development and economic growth; and
WHEREAS, in order to encourage timely economic development and environmentally sound land use planning, it is important that any tax sharing arrangements between COUNTY and CITY be determined in advance of such development and planning 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 as provided in this MOU in an effort to address COUNTY’s and CITY's fiscal issues in providing such services, as well as their respective economic and planning needs; and
WHEREAS, through annexation, CITY provides the opportunity for economic growth and development which will benefit the residents of CITY and COUNTY and will support public services for CITY and COUNTY; and
WHEREAS, close cooperation between COUNTY and CITY is necessary to maintain and improve the quality of life throughout Fresno County, including CITY, and deliver needed or desirable services in the most timely and cost -efficient manner to all CITY and COUN TY residents; and
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WHEREAS, COUNTY recognizes the need for orderly growth within and adjacent to CITY, for supporting appropriate annexations by CITY, and for 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 is appropriate where it results in the development of urban uses in response to need; noncontiguous urban development of such uses in unincorporated areas within CITY's sphere of influence is not orderly and may result in service inefficiencies and unnecessary expense to COUNTY and CITY; 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 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 CITY General Plan calls for a balance of development and investment in both infill and growth areas which meet the needs of the growing population for housing, jobs, and services; 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, the parties acknowledge that California regulations requires that urban growth and development be directed to urban centers or through the logical expansion of the boundaries of those local agencies which can best accommodate and provide necessar y governmental services; and
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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.
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 MOU.
1.1 "Base property tax revenue" means property tax revenue 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 pro perty tax revenues are apportioned pursuant to this MOU, including the amount of State reimbursement for the homeowners' exemption.
1 .2 "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 fiscal year.
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 determined by the Fresno County Assessor's records, as of the property tax 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, 2001, 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 in a given fiscal year.
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
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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 a jurisdiction by dividing the property tax revenue allocated to that jurisdiction for the prior fiscal year comput ed pursuant to Section 97 of the Revenue and Taxation Code by the gross assessed value of the real property within the jurisdiction of the agency for the prior fiscal year. "Revenue allocated," as used in this section, means "levied."
1.7 "Effective Date" shall mean the last date that all the parties hereto execute this MOU between the 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 MOU.
ARTICLE II
ANNEXATIONS BY CITY
2.1 Any annexations undertaken by CITY following the date of the execution o f this MOU shall be consistent with both the terms of this MOU and either The Standards (The Standards or Standards) as set forth in Exhibit 1, attached hereto and incorporated by reference herein as if set forth fully at this point or The Alternate Standard set forth in this Article II. This MOU shall not apply to annexations proposed by CITY which are not in compliance with its terms, or which fail to meet The Standards or The Alternate Standard. If a proposed annexation is not in compliance with the terms of this MOU, including, but not limited to, The Standards or The Alternate Standard, then the property tax exchange provisions of Article III of this MOU shall not apply in regard to that proposed non-complying annexation. An exchange of property tax revenues between the COUNTY and CITY for any such non -complying annexation shall be handled individually pursuant to Revenue and Taxation Code Section 99(e) or by the negotiation of a standalone property tax exchange agreement between COUNTY and CITY.
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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 (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 shall meet with COUNTY to review whether the proposed annexation complies with this article and The Standards or The Alternate Standard . Within thirty (30) days after the date COUNTY receives notice by CITY of its annexation proposal, COUNTY shall notify CITY in writing if it has determined that the proposed annexation is inconsistent with The Standards or The Alternate Standard. The notice shall describe in reasonable detail the alleged inconsistency(ies) . Upon receipt of such notification, CITY may either modify the proposal to address the inconsistencies with The Standards or The Alternate Standard identified in the COUNTY’s written notice or adopt a resolution finding that the proposed annexation is, in CITY’s determination, consistent with The Standards or The Alternate Standard. If County fails to give such notice within the thirty (30)-day period, the annexation shall be conclusively deemed consistent with all provisions of this article and The Standards or The Alternate Standard.
2.3 If CITY adopts a resolution making the findings described in Section 2.2, above, then COUNTY may challenge such findings by appropriate court action provided such action is filed within thirty (30) days of receipt of written notice of the adoption of CITY's resolution. The court shall independently review the evidence and determine whether the proposed annexation is consistent with this article and The Standards or The Alternate Standard.
As an alternative to a judicial challenge by COUNTY, the parties may, within the aforesaid thirty (30) day period mutually agree in writing to arbitrate their dispute before a retired judge in Fresno County, through proceedings governed by the California Arbitration Act (Code of Civil Procedure § 1280 et. seq.). The parties, upon agreeing to arbitrate, will proceed with arbitration in a timely manner.
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 final conclusion of such court or arbitration proceedings then the property tax exchange provisions of Article III
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of this MOU shall not apply to that proposed annexation.
Notwithstanding the foregoing, CITY may proceed to LAFCO under this 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 such approval upon the Executive Officer's 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 this article and The Standards or The Alternate Standard, or alternatively, receipt of a written stipulation by CITY and COUNTY agreeing that the annexation complies with The Standards or The Alternate Standard and permitting the completion of such proposed annexation. If LAFCO declines to conditionally approve the annexation as provided in this paragraph, or CITY fails to timely request such conditional approval of the annexation, then the property tax exchange provisions of Article III of this MOU shall not apply.
2.4 For the purpose of promoting economic development and job creation, an Alternate Standard for Annexation for significant industrial or regional commercial uses is hereby created (The Alternate Standard) . 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 significant industrial or regional commercial uses. Annexation proposals for industrial/regional commercial uses shall include a conceptual develo pment 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 for planning and implementation may reasonably require a period of five (5) to ten (10) 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 shal l 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
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the economic development objectives and to identify ways to promote mutual economic development objectives. The proposed annexation made under The 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 not apply if CITY rezones an area that was annexed using the Alternate Standard for Annexation to a zone other than Industrial/Regional Commercial without COUNTY's consent.
ARTICLE Ill
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 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 Government Code Sections 54902, 54902.1 and 54903 and Revenue and Taxation Code Section 99 , the distribution of such property tax revenues will not be effective until the revenues are collected in the fiscal year following the calendar year in which the statement of boundary chan ges and the map or plat is filed with the County Assessor and the State Department of Tax and Fee Administration.
3.2 In regard to the annexation of real property which is not considered substantially developed at the time of annexation, COUNTY will r etain all of its base property tax revenue upon annexation. The amount of the property tax increment allocated to special districts whose services are assumed by CITY shall be combined with the property tax increment allocated to COUNTY, the sum of which shall be allocated between CITY and COUNTY pursuant to a tax apportionment ratio depending on which of two separate geographic areas the real property lies.
Southeast Development Area
For real property lying within the Southeast Development Area (SEDA), as shown in Exhibit 2 and Exhibit 2a, the tax apportionment ratio is as follows:
COUNTY: 49%
CITY: 51%
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Effective July 1, 2025, and throughout the term of this agreement, the tax apportionment ratio for SEDA shall be as shown above.
Notwithstanding the foregoing provisions relating to the tax apportionment ratio of real property within the SEDA, if CITY does not annex, accept, and/or otherwise acquire title to the COUNTY rights-of-way identified in section 8. 5 of this MOU within 12 months of the execution of this MOU, for real property lying within the SEDA, the tax apportionment ratio is as follows:
COUNTY: 50%
CITY: 50%
The tax apportionment ratio for the SEDA shown immediately above shall become effective on the day immediately following the expiration of the 12 -month period provided for in section 8.5 of this MOU, provided CITY has not annexed, accepted, and/or otherwise acquired title to the COUNTY rights -of-way identified in section 8. 5 of this MOU , and shall, in such circumstances, remain in effect throughout the remaining term of this MOU.
If City annexes any real property within SEDA prior to the adoption of a specific plan for SEDA, the tax apportionment ratio for that property shall be the same as for the Balance of the Fresno Sphere of Influence, as discussed immediately below.
Balance of Fresno Sphere of Influence
For real property lying within the Fresno Sphere of Influence but not within SEDA (the Balance of the Fresno Sphere of Influence), the tax apportionment ratio is as follows:
COUNTY: 60%
CITY: 40%
Effective July 1, 2025, and throughout the term of this agreement, the tax apportionment ratio for Balance of Fresno Sphere of Influence shall be as shown above.
3.3 Notwithstanding the tax apportionment ratios provided in section 3.2, above, in regards to the annexation of real property which is 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 plu s increment) shall be combined
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with COUNTY's and the sum shall be allocated between CITY and COUNTY pursuant to the following ratio:
COUNTY: 70%
CITY: 30%
ARTICLE IV
DEVELOPMENT WITHIN AND ADJACENT
TO CITY’S SPHERE OF INFLUENCE
AND COUNTY CAPITAL IMPROVEMENT FEES
4.1 COUNTY shall not approve any discretionary development applications for new urban development within CITY’s sphere of influence, as described in Government Code section 56425, et seq., unless that development shall have first been referred to CITY for consideration of possible annexation. The CITY shall within thirty (30) days provide in writing to the COUNTY its intent to initiate annexation proceedings. CITY and COUNTY agree to meet monthly following notice from CITY of its intent to initiate annexation proceedings, to ensure progress in initiating annexation; if progress (such as start of CEQA or filing of application for development) is not made within 105 days, COUNTY may proceed with processing of application as described in this Section. COUNTY may process discretionary applications for development permits for new urban development within CITY’s sphere of influence, only if said development is (1) consistent with the most recently adopted CITY general plan and any applicable community plan, is (2) consistent with COUNTY's general plan policies, and is (3) orderly and does not result in the premature conversion of agricultural lands . For purposes of this MOU, “discretionary development applications” shall mean General Plan Amendments, Rezoning, Tentative Tract Maps, Tentative Parcel Maps, Conditional Use Permits, Director Review and Approvals, and Variances.
4.2 If COUNTY adopts capital improvement fees, CITY shall require that an applicant for any land use entitlement or permit within CITY shall pay all COUNTY, public improvement fees applicable to the entitlement or permit. At COUNTY’s request, CITY shall timel y collect all
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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 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 and in accordance with applicable law. 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. 2, or any other provision of this MOU, COUNTY shall be solely responsible for determining the amount of the fees and setting them in accordance with law. This Section 4.3 shall not be construed as a representation by CITY as to the propriety of the fees or the procedures used in setting them.
4.3 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 improvement fees.
4.4 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.
4.5 Within CITY’s sphere of influence and for one-half 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 provision of urban services. CITY shall also be given the
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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.
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 zoning amendments in areas that are not currently planned for urban development, in order to meet its obligations under a state-mandated directive.
4.6 City may, at any time during the term of this MOU, file the appropriate application with LAFCo to modify or expand the City’s sphere of influence. Any change in the CITY’s sphere of influence proposed by either COUNTY or CITY which would modify the area d epicted 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 5 1.5, Division 2, of the Revenue and Taxation Code (commencing with Section 7200), CITY shall, concurrent with the execution of this MOU, amend its local sales and use tax ordinance , as needed to comply with the terms of this MOU . The amendment of CITY’s sales and use tax ordinance (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 bec ome effective as of April 1, 2025. 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 in Section 5.4 below.
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 equal to the sales and use tax then due to COUNTY.
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5.2 If CITY fails to amend its sales tax ordinance as provided in Section 5.1, and if CITY fails to remedy any such failure within thirty (30) days after CITY receives such notice from COUNTY of the failure, then COUNTY may terminate this MOU as provided in Section 9.2 below.
5.3 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 r evenue pursuant to this MOU.
5.4 Effective July 1, 2025 and throughout the term of this MOU, the Sales Tax Revenue Sharing Proportion shall be established as follows:
CITY 5%.
ARTICLE VI
MANAGED GROWTH WITHIN AND ADJACENT TO SOUTHEAST DEVELOPMENT AREA
6.1 City agrees to manage growth and development in SEDA in the following manner.
Prior to any annexation within SEDA, the City shall develop an annexation strategy which describes annexations of unincorporated areas within SEDA and unincorporated areas that are currently on the eastern boundary of City’s limits (Exhibit 2a) so as to avoid the creation of county islands or irregular boundaries. The County will not oppose annexations that comply with the Cortese Knox Hertzberg Act and this MOU.
ARTICLE VII
COUNTY AND CITY ASSURANCES ON USE OF REVENUE
7.1 COUNTY recognizes that certain revenue reallocated to it by this 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.
7.2 CITY agrees to continue enforcement of laws which result in the collection of fines and forfeitures.
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ARTICLE VIII
COOPERATIVE EFFORTS AND LEGISLATIVE REFORM
8.1 CITY and COUNTY agree to work jointly for state legislation and appropriations that would improve the fiscal condition of both CITY and COUNTY.
8.2 Within three months (90 days) following the Effective Date of this MOU, CITY shall consider dismissing pending General Plan litigation against COUNTY.
8.3 CITY and COUNTY agree to work collaboratively to identify sites as part of COUNTY’s ongoing proactive rezoning program within CITY’s Sphere of Influence necessary to meet COUNTY’s 6th Cycle Housing Element, Regional Housing Needs Allocation. COUNTY shall conduct CEQA review as part of its proactive rezoning program.
8.4 CITY shall apply its Annexed Rural Residential Transitional (ANX) Overlay on existing unincorporated COUNTY zoned Rural Residential parcels included in future annexations within CITY Sphere of Influence. Any properties annexed through the ANX Overlay shall have an extended implementation period of five (5) years for connection to utility services.
8.5 Within 12 months of execution of this MOU, and with City Council approval, CITY shall annex, accept , and/or otherwise acquire title to COUNTY right-of-way for the following intersections:
a. E. Belmont and N. Minnewawa Avenues, and
b. E. Clinton and N. Millbrook Avenues, inclusive of the CITY’s proposed Mid Town Trail.
Should City not annex, accept, and/or otherwise acquire title to the above COUNTY rights-of-way within 12 months of the execution of this MOU, the tax apportionment ratio for real property lying within the SEDA shall be an even 50% - 50% split between COUNTY and CITY, as provided in section 3.2 of this MOU, above.
8.6 Prior to the expiration date of August 19, 2025, City agrees to renegotiate or extend the Property Tax Allocation Agreement (Allocation Agreement) between City of Fresno and Fresno County Fire Protection District (DISTRICT) so that required transition fees due to DISTRICT are paid by development projects approved by CITY. Notwithstanding the foregoing
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sentence, however, failure of CITY to renegotiate the Allocation Agreement to allow said transition fees to be paid by development projects as opposed to being paid by CITY does not excuse CITY from its obligation under this section 8.6 to execute an extension to or replacement of the Allocation Agreement prior to its termination, which extension or replacement ensures that DISTRICT transition fees are paid regardless of the source of payment. Either (1) the failure of CITY to execute such an extension to or replacement of the Allocation Agreement prior to the termination of the existing Allocation Agreement, or (2) the termination of or other lapse in such extension to or replacement of the Allocation Agreement without its own replacement, during the term of this MOU, shall each be bases for termination of this MOU pursuant to section 9.2.
ARTICLE IX
GENERAL PROVISIONS
9.1 Term of MOU:
This MOU shall commence as of the Effective Date and remain in effect until December 31, 2034 (Initial Term). This MOU shall be automatically extended for one additional five (5) year period, through December 31, 2039 (Extension Term), unless either party provides written notice not less than one hundred eight (180) days prior to the expiration of the initial Term, of its desire to not extend this MOU. This MOU may also be terminated at any time by mutual agreement of the Parties or as otherwise provided by this MOU.
9.2 Termination.
In addition, should all or any portion of this MOU be declared invalid or inoperative by a court of competent jurisdiction, or should any party to this MOU fail to perform any of its obligations hereunder as determined by a court of competent jurisdiction, or should any party to this MOU take-any action to frustrate the intentions of the parties as expressed in this MOU as determined by a court of competent jurisdiction, and does not correct such noncompliance within the time specified in this MOU, then i n such event, this entire MOU may be terminated as provided in this Section.
Prior to this MOU being terminated for failure b y City to comply with its material obligations, COUNTY shall provide written notice to CITY specifying such alleged failure , and
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CITY shall comply with the obligations and terms specified in the written notice within thirty (30) days after the date of receipt of the notice. If CITY complies within the thirty -day period, this MOU shall remain in full force and effect. If CITY fails to comply within the thirty-day period, then the City shall be in breach and the County may terminate this MOU. During the thirty (30) day notice period and until CITY certifies in writing that it is in compliance with the provisions of this MOU 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.
Prior to this MOU being terminated for failure by the County to comply with its material obligations, CITY shall provide written notice to COUNTY specifying such alleged failure, and COUNTY shall comply with the obligations and terms specified in the written notice within thirty (30) days after the date of receipt of the notice. If COUNTY fails to timely comply with the terms and conditions of this MOU, this MOU shall terminate. During the thirty (30) day notice period and until COUNTY certifies in writing that it is in compliance with the provisions of this MOU and CITY agrees in writing, at the election of the CITY, no property tax exchange agreement, as required by Revenue and Taxation Code Section 99, shall exist between COUNTY and CITY with respect to any pending annexations.
The provisions in Article III pertaining to the exchange of property tax revenues shall survive termination of this MOU and will apply to all pending and future annexations.
Except as otherwise provided, the parties hereto have executed this MOU in the County of Fresno, State of California, on the dates set forth above.
9.3 Geographic Application of MOU
This MOU shall apply only to the area identified as the City of Fresno’s Sphere of Influence as depicted in Exhibit 3. This 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 MOU.
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9.4 Termination Due to Changes in Law:
The purpose of this MOU is to alleviate in part the revenue shortfall, if any, 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 MOU is also to enable CITY to proceed with territorial expansion and economic growth consistent with the terms of existing law as well as to maximize each party's ability to deliver essential governmental services. In entering into this MOU, the parties mutually assum e the continuation of the existing state statutory schemes relating to the distribution of available tax revenues to local government, annexations, planning and the other material matters set forth in this MOU, and that assumption is a basic tenet of this MOU. Accordingly, it is mutually understood and agreed that this MOU may, by mutual agreement be terminated should changes occur in state statutory law, court decisions or state administrative interpretations which negate the basic tenet of this MOU.
9.5 Modification:
This MOU and any of the provisions, covenants and conditions set forth herein may be modified or amended only by a writing duly authorized by the respective governing bodies of COUNTY and CITY and executed by each party's authorized representative.
9.6 Enforcement:
COUNTY and CITY each acknowledge that this MOU cannot bind or limit themselves or each other or their future governing bodies in the exercise of their discretionary legislative power.
However, each party agrees that it will, insofar as is legally possible, fully carry out the intent and purposes of this MOU, if necessary, by administrative action independent of ordinances, and that this MOU may be enforced by injunction to the extent allowed by law. This provision shall not be construed to preclude termina tion of this MOU because of failure of a party to perform a legislative act in accordance with provisions of this MOU.
9.7 Entire Agreement and Supersession:
With respect to the subject matter hereof, this MOU supersedes any and all previous negotiations, proposals, commitments, writings, and understandings of any nature whatsoever
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between COUNTY and CITY except as otherwise provided herein. This MOU does not supersede the 1977 "Agreement Between the County of Fresno and the City of Fresno Relating to Municipal Court Fines and Forfeitures," as amended.
9.8 Notice:
All notices, requests, certifications, or other correspondence required to be provided by the parties to this MOU shall be in writing and shall be personally delivered or delivered by first class mail to the respective parties at the following addresses:
COUNTY CITY
County Administrative Officer City Manager
County of Fresno City of Fresno
Hall of Records, Room 300 City Hall
2281 Tulare Street 2600 Fresno Street
Fresno, CA 93721 Fresno, CA 93721
Notice by personal delivery shall be effective immediately upon delivery . Notice by mail shall be effective upon receipt or three days after mailing, whichever is earlier.
9.8 Renegotiation:
If COUNTY enters into an agreement or memorandum of understanding, which includes a master property tax exchange agreement under Revenue and Taxation Code Section 99(d), with another city that has terms and conditions more favorable in the aggregate to that city than those terms and conditions contained in this MOU, COUNTY agrees that it will negotiate such terms and conditions upon written request from CITY, with the in tent 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 may consider approval any such amendment within thirty (30) days following the date of the tentative agreement. COUNTY and CITY are not required to reach agreement.
9.9 No Waiver of Government Claims Act:
For all claims arising from or related to this MOU, nothing in this MOU establishes, waives, or modifies any claims presentation requirements or procedures provided by law, including the
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Government Claims Act (Division 3.6 of Title 1 of the Government Code, beginning with section 810).
9.10 Governing Law and Venue
This MOU shall be administered and interpreted under the laws of the State of California.
Jurisdiction of litigation arising from this MOU shall only be in California. Any action brought to interpret or enforce this MOU, or any of the terms or conditions hereof, shall be brought and maintained in the Fresno County Superior Court.
9.11 Authorization to Execute
COUNTY and CITY each represent and warrant that the individuals signing this MOU are duly authorized to do so by their respective legislative bodies and that their signatures on this MOU legally bind COUNTY and CITY to the terms of this MOU.
9.12 Counterparts
This MOU may be signed in counterparts, each of which is an original, and all of which together constitute this MOU.
(Signature page follows.)
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IN WITNESS WHEREOF, the parties hereto have executed this MOU in the County of Fresno, State of California, on the last date set forth below.
County of Fresno, a Political City of Fresno, a Municipal Subdivision of the State of California Corporation of the State of California (COUNTY) (CITY)
By: ___________________________ By: __________________________ Nathan Magsig, Chairman of the Jerry P. Dyer, Mayor, City of Fresno Board of Supervisors of the County of Fresno
Date: _________________________ Date: _________________________
Attest: By: __________________________
Bernice E. Seidel Annalisa Perea, Council President
Clerk of the Board of Supervisors City of Fresno
County of Fresno, State of California Georgeanne White, City Manager Clerk to the Board of Supervisors
By: _________________________ By: ___________________________ Deputy Georgeanne White, City Manager
Approved as to Legal Form
ANDREW JANZ, City Attorney
By: ___________________________
Jennifer M. Quintanilla Date
Senior Deputy City Attorney
Attest:
Todd Stermer, CMC
City Clerk
By: ___________________________
Todd Stermer, City Clerk Date
EXHIBIT 1
STANDARDS FOR ANNEXATION
• The proposal must be consistent with 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(s) (single-family residential) (b) Approved city entitlement (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 County road right-of-way along the annexation boundary and all County road right-of-way impacted or used by the project, or County road intersections to be improved as a result of the project within a minimum of ½ mile of the annexation boundary.
• 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 r
equest for annexation is by a city for annexation of its own publicly-owned property for public use.
• The r
equest for annexation is by a city in order to facilitate construction of public improvements or public facilities which otherwise could not be constructed. • The r
equest for annexation is to remove an unincorporated island, substantially surrounded area, or otherwise address existing peninsulas and/or irregular boundaries. • The annex
ation is intended to mitigate or otherwise comply with standards/conditions required by another agency with respect to another development/annexation.
Exhibit 3
SOUTHEAST DEVELOPEMENT AREA
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Est. of Unannexed Land (3870 Acres)
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Exhibit 4