MEMORANDUM OF UNDERSTANDING
REGARDING THE DEVELOPMENT OF ADDITIONAL FUNDING SOURCES
FOR THE MOSSDALE TRACT AREA AS BETWEEN THE
SAN JOAQUIN AREA FLOOD CONTROL AGENCY AND
THE CITIES 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 Project”).
C. SJAFCA’s current financing plan reflected in each of the 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 of the financing plan have been implemented according to schedule. However, SJAFCA elected to delay the formation of the 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.
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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 SJAFCA 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 Section 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 of the 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 of the 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
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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
By:
Stephen Salvatore, City Manager
CITY OF MANTECA
By:
Toni Lundgren, Interim City Manager
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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:
____________________________
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