ATTACHMENT G
1 MEMORANDUM OF UNDERSTANDING
BETWEEN THE CITY OF MARYSVILLE
AND
THE LINDA FIRE PROTECTION DISTRICT
REGARDING THE IMPLEMENTATION OF THE MARYSVILLE FIRE DEPARTMENT
ANNEXATION
RECITALS
A. On September 24, 2025, the Yuba County Local Agency Formation Commission ("LAFCO") approved the annexation of the City of Marysville's fire protection service area into the Linda Fire Protection District ("Linda FPD") pursuant to the Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000 (Government Code Section 56000 et seq.) and approved the related Feasibility Study and associated conditions of approval.
B. In connection with the annexation, the City of Marysville ("City") and Linda FPD have entered into, or are subject to, various agreements, approvals, and obligations, including but not limited to the LAFCO proceedings, Feasibility Study, property tax exchange agreements, employee transition arrangements, asset transfers, and other implementation documents.
C. Following LAFCO's approval, the Parties identified various operational, financial, administrative, governance, and implementation matters that were not expressly addressed, or that require clarification regarding the interpretation and implementation of the LAFCO action, Feasibility Study, tax-sharing agreements, and related transition documents.
D. The Parties desire to establish a mutually agreed-upon framework for addressing such matters, facilitating the orderly transition of fire protection services, and implementing the annexation in a manner consistent with the intent of the LAFCO approval and related agreements.
E. This Memorandum of Understanding ("MOU") is intended to document the Parties' mutual understanding regarding such matters, establish agreed-upon implementation procedures, and provide a framework for ongoing coordination between the Parties.
F. Except as expressly provided herein, this MOU is intended to supplement and clarify previously approved agreements, actions, and obligations and is not intended to amend, modify, supersede, or replace any LAFCO-approved property tax exchange agreement, condition of approval, or other binding agreement.
SECTION 1
INCORPORATION OF RECITALS
The foregoing recitals are not merely recitals but are contractual in nature and are incorporated into this MOU as though fully set forth herein.
ATTACHMENT G
2 SECTION 2
SCOPE AND PURPOSE OF AGREEMENT
This MOU documents the parties' mutual understanding regarding certain financial, operational, administrative, and transition-related matters associated with the annexation of fire services.
These matters include items that were not expressly addressed in the LAFCO proceedings, Feasibility Study, tax-sharing agreements, or other related documents, as well as matters for which the parties desire additional clarification regarding implementation and administration.
The provisions contained herein are intended to memorialize the parties' agreed-upon treatment of these matters and provide guidance during the transition of fire protection services from the City to Linda FPD. The parties acknowledge that additional agreements or implementing documents may be prepared as necessary to carry out the intent of the annexation and the understandings reflected in this MOU.
SECTION 3
RESERVE CONTRIBUTION
Acknowledgements
The Parties acknowledge that the Feasibility Study prepared as part of the annexation process identified reserve funding as an implementation issue requiring future negotiation between the Parties.
The Parties further acknowledge that the Feasibility Study contemplated that a proportional reserve contribution may be appropriate to ensure that one community is not financially supporting the other following annexation and further contemplated that any reserve contribution could be provided either as a lump sum payment or over multiple fiscal years as agreed by the Parties.
The Parties acknowledge that neither the Feasibility Study, the Tax Sharing Agreement, the annexation resolutions adopted by the Parties, nor the approval of the annexation by the Yuba County Local Agency Formation Commission established a specific reserve contribution amount, methodology, percentage, formula, payment schedule, or implementation mechanism.
The Parties further acknowledge that reserve funding was identified as an implementation issue requiring resolution through subsequent negotiations between the Parties.
The Parties acknowledge that the Reserve Contribution amount and payment timing represents a negotiated resolution of reserve funding matters associated with the annexation and implementation of the transfer of fire services from the City to the District.
Compensation
Following review of the Feasibility Study, the Tax Sharing Agreement, the property tax exchange calculations utilized during the annexation process, and subsequent negotiations between the City and the District, the Parties agree that the City shall provide a reserve contribution to the
ATTACHMENT G
3 District in the total amount of Eight Hundred Ninety Thousand Dollars ($890,000) ("Reserve Contribution").
The Reserve Contribution shall be paid by the City to the District in Four (4) annual installments as follows:
Fiscal Year Payment Amount
FY 2026-27 $320,000.00
FY 2027-28 $190,000.00
FY 2028-29 $190,000.00
FY 2029-30 $190,000.00
Total $890,000.00
Each installment shall be paid no later than August 31 of the applicable fiscal year unless otherwise agreed in writing by the Parties.
The Parties may mutually agree to modify the timing of individual installment payments, provided that the total Reserve Contribution is paid within the Four (4) year period established herein.
Satisfaction of Reserve Obligation
Upon payment of the Reserve Contribution described in this Article, the City shall have fully satisfied any reserve contribution obligation associated with the annexation contemplated by the Feasibility Study and related annexation documents.
No Additional Reserve Claims
Except as otherwise required by law or mutually agreed in writing by the Parties, the District shall not seek, and the City shall not be obligated to provide any additional reserve contribution associated with the annexation following satisfaction of the Reserve Contribution identified herein.
No Admission
The Parties acknowledge that alternative methodologies could have been utilized to evaluate reserve funding and that the Reserve Contribution set forth herein represents a negotiated settlement between the Parties. Execution of this Agreement shall not constitute an admission by either Party regarding the appropriateness of any alternative methodology, reserve amount, or reserve funding obligation.
ATTACHMENT G
4 SECTION 4
APPARATUS AND EQUIPMENT LEASES
Marysville shall retain ownership of, and remain solely responsible for, all debt obligations associated with the fire apparatus and equipment identified in Attachment A – Financed Fire Apparatus and Equipment. Linda FPD shall lease such apparatus and equipment from the City for One Dollar ($1.00) per year until the applicable financing lease or debt obligation has been satisfied.
During the lease term, Linda FPD shall be solely responsible for all operating, maintenance, repair, insurance, and replacement costs associated with the leased apparatus and equipment.
Linda FPD shall maintain liability and physical damage insurance coverage for all leased apparatus and equipment at coverage limits no less than those maintained by the City through the Northern California Cities Self Insurance Fund (NCCSIF), or equivalent coverage acceptable to the City. The City of Marysville shall be named as an additional insured and loss payee, as applicable, on all insurance policies covering the leased apparatus and equipment until ownership is transferred to Linda FPD. Upon request, Linda FPD shall provide certificates of insurance and endorsements evidencing such coverage.
Upon satisfaction of the applicable financing lease or debt obligation, ownership of the corresponding apparatus and equipment shall transfer to Linda FPD at no additional cost.
For apparatus subject to an outstanding financing lease or debt obligation, Linda FPD shall remit to the City the equipment-use portion of any strike team reimbursement revenue received for deployment of such apparatus, as identified in the applicable State reimbursement schedule.
Such revenues shall be applied by the City toward the corresponding lease or debt obligation.
Linda FPD shall retain all remaining strike team reimbursement revenues, including personnel and overhead reimbursements.
SECTION 5
ASSET TRANSFER, RETENTION, AND PROPERTY OWNERSHIP
Except as otherwise provided herein, all assets used exclusively for the provision of fire protection and emergency services shall transfer to Linda FPD on the annexation effective date.
The assets to be transferred or retained pursuant to this Agreement shall be identified in the Asset Transfer Inventory attached hereto as Attachment B, which is incorporated herein by this reference.
Notwithstanding the foregoing:
a. Assets acquired exclusively with fire department grant funds, fire impact fees, fire service revenues, or other fire-specific funding sources shall transfer to Linda FPD. Assets acquired exclusively with City funds for shared municipal purposes shall remain City property. Assets acquired with a combination of fire-related and City funding sources shall be allocated as identified in Attachment B.
ATTACHMENT G
5 b. The City shall transfer to Linda FPD all right, title, and interest in the fire station property located at 107 9th St, Marysville, CA 95901, Assessor's Parcel Number (APN) 010-056-004, together with all buildings, improvements, fixtures, furnishings, equipment, supplies, and other assets customarily located at and used in connection with the operation of the fire station, except as otherwise provided in this Agreement or identified as retained by the City in Attachment B – Asset Transfer Inventory. The legal description of the property is attached hereto as Attachment C – Fire Station Legal Description and incorporated herein by this reference. Transfer shall be accomplished by quitclaim deed reserving to the City all rights and interests associated with the communications facility as provided herein.
c. The City shall retain ownership of all apparatus and equipment subject to existing financing lease agreements until the applicable debt obligations have been satisfied, as more particularly described in Attachment A – Financed Fire Apparatus and Equipment. d. Except for assets acquired exclusively with fire department grant funds, fire impact fees, fire service revenues, or other fire-specific funding sources, the City shall retain all assets located at the Corporation Yard, including fleet maintenance equipment, vehicle repair equipment, shop tools, and other equipment utilized primarily for municipal operations, public works activities, or fleet maintenance services. Assets acquired exclusively with fire-specific funding sources shall transfer to Linda FPD unless otherwise identified in Attachment B – Asset Transfer Inventory. e. The City shall retain all rights, interests, and revenues associated with the communications facility (cell tower) lease located on fire station property. f. Shared assets, including information technology equipment, vehicles, equipment, tools, and other property utilized by both fire and non-fire operations, shall be allocated as identified in Attachment B.
SECTION 6
DISTRICT DEVELOPMENT IMPACT FEES
Following the annexation effective date, Linda FPD may request that the Marysville City Council adopt ordinances, resolutions, or other actions necessary to impose and collect Linda FPD's existing Development Impact Fees within their respective jurisdictions on behalf of Linda FPD.
The City and Linda FPD shall cooperate in good faith to facilitate the timely review and consideration of such requests, consistent with applicable law and the independent legislative authority of the respective governing bodies.
Upon adoption by the applicable jurisdiction, Development Impact Fees applicable within the City of Marysville shall be collected and administered on behalf of Linda FPD in accordance with the adopted fee program and any implementing agreements between the Parties.
To facilitate implementation, the Parties shall jointly prepare a schedule identifying the applicable ordinance requirements, statutory notice periods, public hearing requirements, and anticipated dates for consideration and enactment of the Development Impact Fees.
ATTACHMENT G
6 Notwithstanding any other provision of this Agreement, upon adoption of the Linda FPD Fire Impact Fee within the City of Marysville, the following provisions shall apply solely to the application of such fee within the annexed territory:
The Fire Impact Fee shall not apply to projects that have obtained a discretionary land use approval from the City of Marysville prior to, or within six (6) months following, the effective date of the impact fee, provided that:
• All fees associated with the discretionary land use approval have been paid in full; • A complete building permit application is submitted within twelve (12) months of the latter of (a) the effective date of the Fire Impact Fee or (b) the date of the discretionary land use approval; and
• The building permit is issued within eighteen (18) months of the latter of (a) the effective date of the Fire Impact Fee or (b) the date of the discretionary land use approval.
Projects failing to satisfy any of the foregoing requirements shall be subject to the Fire Impact Fee in effect at the time of building permit issuance.
For purposes of this section, discretionary land use approvals include, but are not limited to, Tentative Subdivision Maps, Conditional Use Permits, Planned Development Permits, Site Plan and Architectural Review approvals, and Development Agreements.
SECTION 7
MARYSVILLE REPRESENTATION ON THE LINDA FPD BOARD
The parties acknowledge the importance of representation for residents and property owners within the annexed Marysville territory.
Effective July 1, 2026, the Linda Fire Protection District Board of Directors shall expand from three (3) to five (5) members. The City of Marysville shall recommend two individuals for appointment to the additional board seats. Appointment of such individuals shall be at the sole discretion of the Linda Fire Protection District Board of Directors and in accordance with applicable law.
To establish staggered terms, one appointee shall serve until the next regularly scheduled district election occurring after July 1, 2026, and one appointee shall serve until the second regularly scheduled district election occurring after July 1, 2026, unless otherwise required by law.
Thereafter, each seat shall be filled by election for the term prescribed by law. Appointed members may seek election to continue serving in their respective seats.
ATTACHMENT G
7 SECTION 8
CELL TOWER LEASE REVENUE AND SITE ACCESS
Notwithstanding the transfer of ownership of the fire station property to Linda FPD, the City shall retain all rights, interests, and revenues associated with existing communications facility leases located on the fire station property, including the right to administer, amend, renew, extend, or replace such leases.
The parties acknowledge that ownership of the fire station property and underlying real property shall transfer to Linda FPD. Any amendment, extension, renewal, replacement, or new communications facility lease affecting the property shall preserve fire department operational control of the site and shall provide access, use, and operational protections substantially equivalent to those contained in the communications facility lease(s) in effect as of the annexation effective date.
No communications facility lease, amendment, extension, renewal, replacement, maintenance activity, repair activity, construction activity, upgrade activity, or site access associated therewith shall materially interfere with or impair Linda FPD's ability to conduct emergency response operations, train personnel, access the station, deploy apparatus, or otherwise utilize the property for fire protection and emergency services purposes.
The City shall consult with Linda FPD prior to executing any amendment, extension, renewal, replacement, or new communications facility lease affecting the property.
SECTION 9
FIRE INSPECTION/PREVENTION SUPPORT AND JOINT POLICIES
The City and Linda FPD acknowledge the importance of continued coordination in matters affecting public safety, fire prevention, code compliance, and community risk reduction. The parties shall work collaboratively to promote consistent policies, procedures, and enforcement practices, as appropriate, in areas including, but not limited to, fire prevention, fire inspections, building inspections, code enforcement, vegetation management, hazardous conditions, and homeless encampment impact mitigation.
To support ongoing coordination, the parties shall jointly review existing City and Linda FPD policies, procedures, and programs and may develop an inventory of such policies for consideration and prospective adoption, modification, or alignment where mutually beneficial.
Nothing herein shall require either party to adopt any specific policy or limit the independent authority of either agency.
SECTION 10
ACCRUED PERSONNEL COMPENSATORY TIME OFF
The City shall retain responsibility for all Compensatory Time Off ("CTO") balances earned by employees prior to the annexation effective date and shall remain solely responsible for the payment of any associated liabilities attributable to such pre-annexation CTO accruals. For purposes of this Agreement, CTO shall have the same meaning as "Compensatory Time Off
ATTACHMENT G
8 (CTO)" as defined in the applicable Memorandum of Understanding between the City of Marysville and Marysville Firefighters' IAFF Local #2321 in effect on the annexation effective date.
The estimated value of CTO liabilities attributable to employees transferring to Linda FPD as of the annexation effective date is $50,000.00. The Parties acknowledge that this amount is an estimate based upon employee CTO balances and compensation rates in effect as of May 21, 2026.
A detailed schedule supporting the estimated liability is attached hereto as Attachment D – Compensatory Time Off Liability Schedule and incorporated herein by this reference.
Attachment D shall identify each affected employee, the employee's CTO balance in hours, the applicable hourly rate used for valuation, and the estimated dollar value of the employee's CTO balance.
The Parties acknowledge that actual liability may vary based upon changes in CTO balances, compensation rates, payroll adjustments, corrections, or other factors occurring prior to the annexation effective date. The City shall remain responsible for the actual value of CTO earned prior to the annexation effective date.
SECTION 11
ASSIGNMENT OF DISTRICT 10 - HALLWOOD
FIRE PROTECTION SERVICES AGREEMENT
Effective upon the annexation effective date, and subject to any required approvals of the contracting parties, the City hereby assigns to Linda FPD all of the City's rights, duties, obligations, and interests under that certain Fire Protection Services Agreement between the City of Marysville and the District 10/Hallwood Community Services District, dated July 1, 2021 ("Assigned Agreement"). Linda FPD agrees to accept such assignment and assume all obligations arising under the Assigned Agreement from and after the annexation effective date.
The parties acknowledge and agree that the City shall remain responsible for any obligations, liabilities, claims, or performance requirements arising under the Assigned Agreement prior to the annexation effective date, and Linda FPD shall be responsible for all obligations, liabilities, claims, and performance requirements arising on or after the annexation effective date.
A true and correct copy of the Assigned Agreement is attached hereto as Attachment E – D10/Hallwood Fire Protection Services Agreement and incorporated herein by this reference.
The City and Linda FPD shall execute such additional documents and take such further actions as may be reasonably necessary to effectuate the assignment and assumption contemplated by this section.
ATTACHMENT G
9 SECTION 12
GENERAL PROVISIONS
Further Assurances
The Parties shall execute such additional documents and take such further actions as may be reasonably necessary to implement and effectuate the intent of this MOU.
Cooperation
The Parties acknowledge that successful implementation of the annexation will require ongoing coordination and cooperation and agree to work in good faith to address administrative, operational, financial, and legal matters arising during the transition period.
Designated Representatives and Notices
The following individuals are designated as the authorized representatives of the Parties for purposes of administering, coordinating, implementing, and receiving notices under this MOU:
City of Marysville
City Manager
City of Marysville
526 C Street
Marysville, CA 95901
Phone: (530) 749-3901
Email: [email protected]
Linda Fire Protection District
Fire Chief
Linda Fire Protection District
1286 Scales Ave
Marysville CA 95901
Phone: (530) 743-1553
Email: [email protected]
The designated representatives shall serve as the primary points of contact for all matters arising under this MOU and may coordinate administrative actions necessary to implement this MOU within the scope of their respective delegated authority.
Any notice, request, demand, consent, approval, or other communication required or permitted under this MOU shall be deemed properly given when delivered personally, transmitted by electronic mail, deposited with a nationally recognized overnight delivery service, or deposited in
ATTACHMENT G
10 the United States Mail, postage prepaid, addressed to the designated representative of the receiving Party at the address set forth above.
Either Party may change its designated representative or contact information by providing written notice to the other Party.
Transition Issues
The Parties acknowledge that unforeseen issues may arise during implementation of the annexation. The City Manager and Fire Chief, or their designees, are authorized to coordinate administrative solutions to such issues within their respective legal authority, subject to governing board approval where required by law.
Dispute Resolution
The Parties shall cooperate in good faith and undertake all actions reasonably necessary to implement this MOU and the approved annexation.
The Parties shall make reasonable efforts to resolve any disagreement regarding the interpretation or performance of this MOU through informal consultation between the City Manager and the Linda FPD Fire Chief, or their respective designees. Any administrative resolution shall be limited to matters within the authority delegated to such representatives under applicable law, ordinance, resolution, policy, or direction of their governing bodies and shall not amend or modify this MOU without any approvals otherwise required by law.
For matters involving legal or contractual interpretation, the City Attorney and Linda FPD legal counsel shall confer and provide recommendations for resolution.
If a matter cannot be resolved administratively, it shall be referred to the Marysville City Council and the Linda FPD Board of Directors, or to a committee designated by the respective governing bodies, for discussion and direction.
Pending resolution of any disagreement, the Parties shall continue to perform their respective obligations under this MOU to the extent reasonably practicable. Nothing herein shall preclude either Party from exercising any rights or remedies available under applicable law or participating in any process required by LAFCO or other governmental authority having jurisdiction.
Authority
Each Party represents and warrants that it has the authority to enter into this MOU and that the individuals executing this MOU are authorized to bind their respective agencies.
Entire Agreement
This MOU constitutes the entire agreement between the Parties regarding the subject matter herein and supersedes all prior negotiations, discussions, understandings, and agreements relating thereto.
ATTACHMENT G
11 No Waiver of Rights.
Except as expressly provided herein, nothing in this MOU shall be construed as a waiver of any right, claim, obligation, or remedy available to either Party under applicable law, the LAFCO approval, the tax exchange agreement, or any other agreement between the Parties.
Amendments
This MOU may be amended only by a written agreement approved by the governing bodies of both Parties and executed by authorized representatives.
Successors and Assigns
This MOU shall be binding upon and inure to the benefit of the Parties and their respective successors and permitted assigns.
Severability
If any provision of this MOU is held invalid, illegal, or unenforceable by a court of competent jurisdiction, the remaining provisions shall remain in full force and effect.
Governing Law and Venue
This MOU shall be governed by and construed in accordance with the laws of the State of California. Any action, proceeding, or dispute arising out of or relating to this MOU shall be brought and maintained exclusively in a court of competent jurisdiction located in Yuba County, California. The Parties hereby consent to the jurisdiction and venue of such courts.
No Third-Party Beneficiaries
Nothing in this MOU is intended to create rights in any person or entity not a Party to this MOU.
Counterparts
This MOU may be executed in counterparts, each of which shall be deemed an original and all of which together shall constitute one instrument.
Effective Date
This MOU shall become effective upon approval by the Marysville City Council and the Linda Fire Protection District Board of Directors and execution by the authorized representatives of the Parties ("Effective Date").
ATTACHMENT G
12 Attachments and Exhibits
Attachment A – Lease Schedules - Financed Apparatus
Attachment B – Asset Transfer Inventory
Attachment C – Fire Station Legal Description
Attachment D – Compensatory Time Off Liability Schedule Attachment E – District 10/Hallwood Fire Protection Services Agreement
ATTACHMENT G
13 IN WITNESS WHEREOF, the Parties hereto have caused this Memorandum of Understanding to be executed by their duly authorized representatives.
CITY OF MARYSVILLE LINDA FIRE PROTECTION
DISTRICT
____________________________ ____________________________ Jim Schaad Kyle Heggstrom
City Manager Fire Chief
Date: ________________________ Date: ________________________
APPROVED AS TO FORM
_____________________________ _____________________________ Brant Bordsen
City Attorney District Legal Counsel
Date: ________________________ Date: ________________________ ATTEST:
_____________________________
Maggie Sanchez
City Clerk
City of Marysville
Date: ________________________