ITEM 4. 7
CITY MANAGER' S REPORT
JANUARY 9, 2023 CITY COUNCIL REGULAR MEETING
ITEM: APPROVE A MEMORANDUM OF
UNDERSTANDING ( MOU) RELATED TO
FUNDING FOR THE MOSSDALE TRACT AREA
PRO) ECTS BETWEEN S) AFCA, THE CITY OF
STOCKTON, AND THE CITY OF MANTECA;
DELEGATE AUTHORITY FOR THE CITY
MANAGER TO EXECUTE
RECOMMENDATION: Adopt Resolution Approving a Memorandum of Understanding ( MOU) Related to Funding for
the Mossdale Tract Area Projects Between
S AFCA, the City of Stockton, and the City of
Manteca; delegate authority for the City
Manager to execute
CEQA STATUS: Exempt according to California Environmental Quality Act Article 5 § 15061 ( b) ( 3)
SUMMARY:
The San Joaquin Area Flood Control Agency ( SJAFCA) has been designated as the Local Flood Management Agency ( LFMA") for the Mossdale Tract Area since 2018 and, consistent with Government Code 65007( a)( 5), prepared and issued reports on an annual basis to the Central Valley Flood Protection ( CVFPP) Board regarding the efforts underway to achieve 200- year level of protection for the Mossdale Tract Area.
S) AFCA, as the LFMA, continues to make significant progress toward 200- year protection for the Mossdale Tract as detailed in the Adequate Progress Reports, through an effort referred to as the Mossdale Tract Area Project.
On December 15, 2022 and December 20, 2022, the SJAFCA Board and the City of Manteca, respectively, passed the attached Memorandum of Understanding ( MOU), which identifies alternative funding sources moving forward and/ or changes to an Overlay Assessment District to sustain the Mossdale Tract Area Project. The MOU is intended to document the intent by the Cities of Lathrop, Manteca and Stockton to initiate negotiations relating to a future funding agreement to ensure SJAFCA has funds necessary to continue its design and permit efforts to achieve 200- year level of protection for the Mossdale Tract.
While the MOU has been negotiated as to form and agreed to by some agencies, it is possible that minor conforming and clarifying changes may be needed. Therefore, staff recommends Council approve a MOU Related to Funding for the Mossdale Tract Area Projects between SJAFCA, the City of Stockton, the City of Manteca, and the City of Lathrop; and delegate authority for the City Manager to execute.
CITY MANAGER' S REPORT PAGE 2
JANUARY 9, 2023 CITY COUNCIL REGULAR MEETING
APPROVE MOU RELATED TO FUNDING FOR THE MOSSDALE TRACT AREA
PROJECTS BETWEEN SJAFCA, THE CITY OF STOCKTON, AND THE CITY OF MANTECA; DELEGATE AUTHORITY FOR THE CITY MANAGER TO EXECUTE BACKGROUND:
In 2007, the Legislature passed California Senate Bill 5 ( SB5), which was later amended by various other bills. SB5 requires the State to develop and adopt a comprehensive CVFPP, which was approved by the Central Valley Flood Protection Board in June 2012. As amended, SB5 also required all cities and counties in the Central Valley to incorporate the CVFPP into their respective General Plans by July 2, 2015, and into their zoning ordinances by July 2, 2016. SB5 restricted development beyond July 2, 2016, unless a permitting agency can make a finding of "Adequate Progress" toward providing an Urban Level of Flood Protection ( ULOP), which includes protection from a 200- year flood.
The existing Mossdale Tract Area levees, which are managed by Reclamation District 17 ( RD 17), currently do not meet the updated Department of Water Resources DWR) urban levee design criteria ( ULDC) standards adopted in May 2012, and the existing levees are not currently certified to provide 200-year protection. Accordingly, the land use agencies, in coordination with RD 17, are jointly pursuing efforts to achieve ULOP by 2028. The MOU entered into on May 10, 2016, between the Cities of Lathrop, Manteca, Stockton, San Joaquin County, and RD 17, served as the first step in formalizing the relationship between these local agencies in pursuit of ULOP flood protection for the RD 17 levees.
REASON FOR RECOMMENDATION:
The proposed MOU is intended to document the intent by the Cities of Lathrop, Manteca, and Stockton to initiate negotiations relating to a future funding agreement to ensure SJAFCA has funds necessary to continue its efforts design, permit and continue its intended improvements to achieve 200- year level of protection for the Mossdale Tract.
CEQA: Exempt according to California Environmental Quality Act Article 5 § 15061 b) ( 3), Common Sense Exemption
FISCAL IMPACT:
There is no fiscal impact.
ATTACHMENTS:
A. Resolution of the City Council Approving a Memorandum of Understanding MOU) Related to Funding for the Mossdale Tract Area Projects Between SJAFCA, the City of Stockton, and the City of Manteca; delegate authority for the City Manager to execute
B. Memorandum of Understanding Regarding the Development of Additional Funding Sources for the Mossdale Tract Area as Between the San ] oaquin Area Flood Control Agency and the Cities of Lathrop, Manteca, and Stockton CITY MANAGER' S REPORT PAGE 3
JANUARY 9, 2023 CITY COUNCIL REGULAR MEETING
APPROVE MOU RELATED TO FUNDING FOR THE MOSSDALE TRACT AREA
PRO) ECTS BETWEEN S) AFCA, THE CITY OF STOCKTON, AND THE CITY OF MANTECA; DELEGATE AUTHORITY FOR THE CITY MANAGER TO EXECUTE APPROVALS:
Z- 28- ZOZZ
Michael King Date
Assistant City Manager
l 2 2F' z0 22
Salvador Navarrete Date
City Attorney
s•a3
Ste J. Salvatore Date
City Manager
RESOLUTION NO. 23-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LATHROP
APPROVING A MEMORANDUM OF UNDERSTANDING ( MOU) RELATED TO
FUNDING FOR THE MOSSDALE TRACT AREA PROJECTS BETWEEN S) AFCA, THE CITY OF STOCKTON, AND THE CITY OF MANTECA; DELEGATE
AUTHORITY FOR THE CITY MANAGER TO EXECUTE
WHEREAS, the San Joaquin Area Flood Control Agency ( SJAFCA) has been designated as the Local Flood Management Agency (" LFMA") for the Mossdale Tract Area since 2018 and, consistent with Government Code 65007( a)( 5), prepared and issued reports on an annual basis to the Central Valley Flood Protection Board regarding the efforts underway to achieve 200- year level of protection for the Mossdale Tract Area; and
WHEREAS, SJAFCA continues to make significant progress toward 200- year protection for the Mossdale Tract as detailed in the Adequate Progress Reports, through an efFort referred to as the Mossdale Tract Area Project; and WHEREAS, on December 15, 2022 and December 20, 2022, the SJAFCA Board and the City of Manteca, respectively, passed an MOU which identifies alternative funding sources moving forward and/ or changes to an Overlay Assessment District to sustain the Mossdale Tract Area Project; and
WHEREAS, the MOU is intended to document the intent by the Cities of Lathrop, Manteca and Stockton to initiate negotiations relating to a future funding agreement to ensure SJAFCA has funds necessary to continue its design and permit efforts to achieve 200- year level of protection for the Mossdale Tract; and WHEREAS, while the MOU has been negotiated as to form and agreed to by some agencies, it is possible that minor conforming and clarifying changes may be needed. Therefore, staff recommends Council approve the MOU and delegate authority for the City Manager to execute; and
WHEREAS, exempt according to California Environmental Quality Act Article 5 § 15061 ( b) ( 3), Common Sense Exemption.
NOW, THEREFORE, BE IT RESOLVED, the City Council of the City of Lathrop hereby approves a Memorandum of Understanding ( MOU) Related to Funding for the Mossdale Tract Area Projects Between SJAFCA, the City of Stockton, and the City of Manteca; and
BE IT FURTHER RESOLVED, the City Council of the City of Lathrop hereby delegates authority for the City Manager to execute the MOU; and NOW, THEREFORE, BE IT FINALLY RESOLVED, the City finds that this Project is Exempt according to California Environmental Quality Act Article 5 § 15061 b) ( 3), Common Sense Exemption.
The foregoing resolution was passed and adopted this 9th day of ] anuary 2023, by the following vote of the City Council, to wit:
AYES:
NOES:
ABSTAIN:
ABSENT:
Sonny Dhaliwal, Mayor
ATTEST: APPROVED AS TO FORM:
Teresa Vargas Salvador Navarrete
City Clerk City Attorney
ATTACHMENT B
MEMORANDUM OF UNDERSTANDING
REGARDING THE DEVELOPMENT OF ADDITIONAL FUNDING SOURCES FOR THE MOS5DALE TRACT AREA AS BETWEEN THE
SAN JOAQUIN AREA FLOOD CONTROL AGENCY AND
THE CITIE5 OF LATHROP, MANTECA, AND STOCKTON
This Memorandum of Understanding( the" MOU") is entered into by and between the San Joaquin Area Flood Control Agency (" SJAFCA"), the City of Lathrop (" Lathrop"), City of Manteca Manteca"), and the City of Stockton (" Stockton") ( three listed Cities referenced hereinafter collectively as " Participating Cities.") This MOU shall be effective upon execution by SJAFCA and the Participating Cities( the" Effective Date").
RECITALS
A. SJAFCA has been designated as the Local Flood Management Agency(" LFMA") for the Mossdale Tract Area since 2018 and, consistent with Government Code 65007( a)( 5), prepared and issued reports on an annual basis to the Central Valley Flood Protection Board regarding the efforts underway to achieve 200- year level of protection for the Mossdale Tract Area(" Adequate Progress Reports").
B. SJAFCA, as the LFMA, continues to make significant progress toward 200- year protection for the Mossdale Tract as detailed in the Adequate Progress Reports(" Mossdale Tract Area Proj ect").
C. SJAFCA' s current financing plan reflected in each ofthe annual Adequate Progress Reports for the Mossdale Tract Area Project contemplates revenues from the following sources:
Early contributions from member agencies;
Enhanced infrastructure financing district( EIFD);
Development impact fee ( DIF); and
Overlay Assessment District( OAD).
D. Each of the first three elements ofthe financing plan have been implemented according to schedule. However, SJAFCA elected to delay the formation ofthe OAD from its current timeline of late 2022/ 23 to late FY 2023/ 24 with the expectation that assessments can commence being levied in FY 2024/ 25.
E. In addition, SJAFCA has been developing an alternative financing plan to ensure adequate and complete funding for the Mossdale Tract Area Project. The most beneficial alternative financing plan requires a Federal feasibility study conducted by the U.S. Army Corps of Engineers ( USACE) followed by Congressional authorization that can then result in a significant infusion of Federal funds to the basin. The Mossdale Tract is unique among urban areas in the Central Valley seeking significant increases in flood protection in that it is the only such urban basin which is not receiving Federal funds by partnering with the USACE. The Parties agree that obtaining such Federal funds is a significant benefit to the region and the State and should be the Parties' highest priorities.
F. SJAFCA' s cash flow scenarios related to the Mossdale Tract Area Project indicate that it has adequate funds on hand to meet its cash flow demands through 2023. While the USACE is developing its feasibility study, and while SJAFCA works to form an OAD, the Parties have agreed to execute this MOU by which the Participating Agencies commit to negotiate and execute an agreement which will backstop any funding needs of 5JAFCA that may exist after 2023 (" Advanced Funding Agreement") provided, however, that prior to providing such funds, the Participating Cities shall confirm that they can provide the funds without materially harming existing programs and the Participating Cities acknowledge that a failure to provide such funds may result in SJAFCA' s inability to take certain actions regarding the Mossdale Tract Area Project.
G. Subject to 5ection 10 of the " Amended Agreement for Collection of SJAFCA Mossdale Tract Area Regional Urban Level of Flood Protection Development Impact Fee," it is the intention of the Parties to seek to use future revenue sources ( e. g., OAD, EIFD, Development Impact, etc.) to reimburse any funding provided by the Participating Cities under this MOU.
NOW, THEREFORE, the Parties hereby agree as follows:
AGREEMENT
1. Commitment for an Advanced Funding Agreement. Parties agree to negotiate and then use good faith to consider execution of an Advanced Funding Agreement during calendar year 2023 whereby Participating Cities shall agree to make sufficient funds available to SJAFCA to meet operational shortfalls for the Mossdale Tract Area Project net of revenues from all other funding sources.
2. No Third- Party Beneficiaries. This MOU is intended solely for the benefit of the Parties and shall not be construed to create any rights for any other person or entity.
3. Term. This MOU shall be effective upon execution by the last ofthe Parties( the" Effective Date"). This MOU shall remain in effect from the Effective Date until such time as terminated by the written agreement of all ofthe Parties.
4. Notices. Notices to the Parties shall be sufficient if delivered as follows:
For City of Lathrop:
City of Lathrop
ATTN: Teresa Vargas, City Clerk
390 Towne Centre Drive
Lathrop, CA 95330
For City of Manteca:
City of Manteca
ATTN: City Clerk; City Engineer; City Manager' s Office 1001 W. Center Street
Manteca, CA 95337
For City of Stockton:
City of Stockton Community Development Department
ATTN: Community Development Director
424 N. El Dorado Street
Stockton, CA 95202
For San Joaquin Area Flood Control Agency:
San Joaquin Area Flood Control Agency
ATTN: Executive Director
22 East Weber Avenue, Room# 301
Stockton, Ca 95202
IN WITNESS WHEREOF, the Parties have executed this Agreement as of the dates specified in the signature block below.
CITY OF LATHROP APPROVED AS TO FORM BY THE CITY
OF LATHROP CITY ATTORNEY
By: By:
Stephen J. Salvatore, City Manager Salvador Navarrete, City Attorney
CITY OF MANTECA
By:
Toni Lundgren, Interim City Manager
For City of Manteca:
City of Manteca
ATTN: City Clerk; City Engineer; City Manager' s Office 1001 ' V. Center Street
Manteca, CA 95337
For City of Stockton:
City of Stockton Community Development Department
ATTN: Community Development Director
424 N. El Dorado Street
Stock on, CA 95202
For San Joaquin Area Flood Control Agencyr:
San Joaquin Area Flood Control Agency
ATTN: Executive Director
22 East Weber Avenue, Roam # 301
Stockton, Ca 95202
1 i WITNESS 4' HEREC) F, the I' arties ha re executed tl is A reement as of the dates specified in the si nature lock below.
CITY OF LATHROP
By:
Stephen Salvatore, City Manager
CITY OP VIANTECA
ay" tk.
By:
Toni L, undgren, Interim City Manager
SAN JOAQUIN AREA FLOOD CONTROL AGENCY
By:
Chris Elias, Executive Director
Approved as to form:
Scott L. Shapiro
CITY OF STOCKTON
HARRY BLACK
CITY MANAGER
APPROVED AS TO FORM:
LORI ASUNCION
CITY ATTORNEY
ATTEST:
ELIZA GARZA
CITY CLERK
AUTHORIZING ACTION: