Item #03
Date: June 24, 2026
To: Mayor and City Council
From: Jim Schaad, City Manager
Subject: Approval of Memorandum of Understanding Between the City of Marysville and Linda Fire Protection District Regarding Implementation of the Fire Service Annexation Recommendation:
Pass Resolution No. 2026-XX approving the Memorandum of Understanding between the City of Marysville and the Linda Fire Protection District regarding implementation of the approved fire service annexation and authorize the City Manager to execute the Agreement and any minor non-substantive revisions approved by the City Attorney, subject to approval by the Linda Fire Protection District Board of Directors.
Background:
The annexation of the City of Marysville's fire service operations into the Linda Fire Protection District was initiated to improve the long-term delivery of fire protection services, enhance operational efficiency, strengthen emergency response capabilities, and provide sustainable fire service funding for the residents, businesses, and visitors served by both agencies.
The annexation effort represents the culmination of several years of collaboration between the City and Linda Fire Protection District. On October 18, 2022, the agencies entered into a shared Fire Chief arrangement that created common leadership, improved operational coordination, reduced administrative duplication, and demonstrated the benefits of increased regional cooperation. The success of this arrangement provided an opportunity to evaluate whether additional efficiencies, service improvements, and long-term sustainability could be achieved through a broader reorganization of fire services.
Following discussions by both governing bodies, the City and Linda Fire Protection District undertook a formal annexation process that included preparation of a Fire Service Consolidation Feasibility Study (March 18, 2025), public meetings, approval of a Tax Sharing Agreement (July 15, 2025), adoption of annexation resolutions, and review by the Yuba County Local Agency Formation Commission (LAFCO). LAFCO approved the annexation on September 24, 2025. The Certificate of Completion was recorded on November 24, 2025, completing the reorganization. Operational transfer of fire protection services is scheduled for July 1, 2026.
Throughout the process, the City and Linda Fire Protection District remained focused on a common objective:
improving fire protection and emergency response services while creating a stronger, more sustainable, and more efficient fire service system for the communities served by both agencies.
Following LAFCO approval, staff from both agencies continued working collaboratively to address implementation issues that were either identified within the Feasibility Study for future negotiation or that required clarification as the transition process moved forward. The proposed Memorandum of Understanding documents the parties' mutual understanding regarding those matters and establishes a framework for implementation of the annexation.
Discussion & Analysis:
The proposed MOU addresses several operational, financial, administrative, and transition-related issues associated with implementation of the annexation. The MOU is intended to supplement and clarify previously approved agreements and actions and does not modify the LAFCO-approved annexation unless expressly stated therein.
Reserve Contribution
The Feasibility Study identified reserve funding as an implementation issue requiring future negotiation between the parties. While the study contemplated that a proportional reserve contribution may be appropriate, it did not establish a specific amount, methodology, or payment schedule.
Following review of the Feasibility Study, annexation documents, and financial information available to both agencies, the parties negotiated a reserve contribution of $890,000 payable over multiple fiscal years. The negotiated contribution reflects the parties' effort to provide reserve funding to Linda Fire Protection District while minimizing impacts to the City's financial position and maintaining fiscal stability during the transition period.
Apparatus Debt Obligations
The City currently maintains debt obligations associated with fire apparatus acquired prior to annexation.
Neither the Feasibility Study nor the Tax Sharing Agreement specifically allocated responsibility for those obligations.
The proposed MOU provides that the City will retain responsibility for the remaining debt obligations while allowing Linda Fire Protection District to utilize the apparatus for fire service operations. Ownership will transfer to the District upon retirement of the debt. Staff concluded that this approach provides the most straightforward implementation framework and avoids reopening financial assumptions utilized during the annexation process.
Asset Transfers
The MOU establishes a framework for transfer of fire service assets necessary for continued operations following annexation. In general, assets utilized exclusively for fire protection and emergency services will transfer to Linda Fire Protection District, while assets utilized primarily for broader municipal purposes will remain City property.
To provide clarity and avoid future disputes, the parties will utilize an Asset Transfer Inventory identifying assets to be transferred and retained. The inventory is attached to the MOU and incorporated into the implementation process.
Governance and Representation
The annexation transfers fire protection responsibilities for residents and businesses within the City to Linda Fire Protection District. As part of implementation discussions, the parties recognized the importance of maintaining representation and participation by residents and property owners within the annexed territory.
The proposed MOU includes provisions intended to address governance and representation during the transition period and support long-term integration of the reorganized fire service system. Additional details regarding board composition, appointments, and future elections are contained within the MOU.
Development Impact Fees
The City does not currently maintain a fire development impact fee program. Following annexation, new development within the City will become subject to Linda Fire Protection District's adopted fire impact fee program in accordance with applicable law and any implementing actions required by the respective agencies.
Because certain projects may have progressed through portions of the entitlement process in reliance upon the City's historical fee structure, the MOU includes a limited grandfathering provision intended to recognize prior development investments while encouraging projects to proceed to construction within a reasonable timeframe.
Additional eligibility requirements and implementation details are contained within the MOU.
Cell Tower Revenue and Fire Station Property
The fire station property contains an existing communications facility operating under a lease agreement that predates the annexation. The MOU provides that ownership of the fire station property will transfer to Linda Fire Protection District while the City retains rights and revenues associated with the communications facility lease.
The MOU further establishes operational protections intended to ensure that communications facility activities do not interfere with emergency response operations, station access, apparatus deployment, training activities, or other fire service functions.
Fire Prevention and Public Safety Coordination
The City and Linda Fire Protection District currently coordinate activities involving fire prevention, fire inspections, code enforcement, vegetation management, building safety, and homeless encampment mitigation.
The MOU recognizes the importance of continuing this coordination following annexation and encourages ongoing collaboration and policy alignment where appropriate.
Employee Transition Matters
The MOU addresses employee-related obligations associated with the transition of fire personnel. In particular, the City will retain responsibility for accrued Compensatory Time Off (CTO) earned by employees prior to annexation. This approach is consistent with the principle that liabilities earned prior to employee transfer remain the responsibility of the originating agency.
District 10 / Hallwood Agreement
The MOU provides for assignment of the existing District 10/Hallwood Fire Protection Services Agreement to Linda Fire Protection District. This provision ensures continuity of service following annexation while clarifying responsibility for obligations arising before and after the effective date of the transfer.
Future Shared Services
The annexation process has identified potential opportunities for future collaboration in areas such as fleet maintenance, shop services, human resources support, training, administrative support, and other operational functions. While these opportunities are not required to implement annexation, they may provide future operational and financial benefits and can be evaluated separately through future agreements.
Environmental Impact:
Approval of the Memorandum of Understanding is not a project subject to the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15378 because it involves organizational, administrative, and fiscal activities that do not result in a direct or reasonably foreseeable physical change in the environment.
Alignment with City Council Goal(s):
This action supports City Council goals related to Increasing Fiscal Sustainability and Enhancing Public Safety.
Legal Review:
The City Attorney has reviewed the Memorandum of Understanding and approved it as to form.
Fiscal Impact:
The proposed MOU includes a negotiated reserve contribution of $890,000 payable over multiple fiscal years, retention of existing apparatus debt obligations by the City, retention of communications facility lease revenues by the City, and retention of pre-annexation CTO liabilities by the City.
The MOU also establishes the framework for transfer of fire-related assets and operational responsibilities to Linda Fire Protection District. Staff believes the proposed agreement represents a reasonable and equitable resolution of implementation issues identified during the annexation process and provides a framework for successful transition of fire services.
Council Options
Option 1 – Approve the Memorandum of Understanding as negotiated and authorize execution of the agreement.
Option 2 – Approve the MOU with Revisions.
Option 3 – Decline approval and direct staff to continue negotiations with Linda Fire Protection District regarding one or more provisions of the agreement.
Attachment(s)
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 F – Resolution No. 2026-XX
Attachment G – Memorandum of Understanding Between the City of Marysville and Linda Fire Protection District