EXTRATERRITORIAL WASTEWATER SERVICE AND REIMBURSEMENT AGREEMENTS BETWEEN CITY AND SALINAS 101 LLCANDPREANNEXATION AGREEMENT FOR PORTION OF EOA KBETWEEN THE CITY OF SALINAS AND THE COUNTY OF MONTEREY
Proposed Project Location
Proposed Sala Road Project
County will not deem application complete without a wastewater treatment plan Owner has requested a Will Serve assurance
Owner and city staff negotiated a final draft Sewer Agreement that states the terms and conditions by which the City will grant a connection to its Disposal System
Sewer Agreement – Terms and Conditions
Owner shall:
Support future annexation
obtain all permits and pay all fees to construct New Sewer Line and private connection pay a one-time development impact fee in the amount of $64,600 pay fees for Disposal System service
City shall:
provide written “will serve” assurance
ensure that Monterey One Water will accept the wastewater and provide service process future annexation application(s) at its sole expense not allow connection prior to pre-annexation agreement with County in place
Owner shall:
complete construction of New Sewer Line
provide evidence of Actual Costs
have right to reimbursement of its Actual Costs based on a wastewater flow proration.
City shall:
collect reimbursement from future users
promptly pay Owner reimbursement
provide Owner with annual financial accounting of reimbursement collected.
Reimbursement Agreement –Terms and Conditions
Proposed Annexation Area -Portion of EDE EOA K
Purpose:
acknowledge the foreseeable annexations
reaffirm coordination of land use entitlement and CEQA compliance as agreed to in the GSA-MOU 2019 Addendum, and analyze the property tax and revenue sharing formulas between the City and the County.
Duration: Five (5) years from the Effective Date with the ability to extend an additional five (5) years upon mutual agreement.
Amendments: The City and the County may amend this Agreement by written amendment mutually executed by both Parties.
Pre-Annexation Agreement
Consideration of Annexation
Subject to compliance with all laws and regulations, including the California Environmental Quality Act, the County acknowledges the contemplated annexation of land within the Annexation Area to the City.
The County agrees to cooperate in good faith with the City in the preparation of the annexation application materials to LAFCO for the land within the Annexation Area.
Development Standards
Pre-annexation, proposed project to be processed and permitted according to County standards Post-annexation, proposed projects to be processed and permitted according to City standards Revenue Sharing Formulas
Sales, Transient Occupancy, Cannabis Tax Revenue – 100% to City post-annexation Property Tax Revenue - Master Tax Agreement shall remain effective until revised. City and County will further discuss and analyze the Master Tax Agreement consistent with LAFCO laws and procedures and as provided in the GSA-MOU 2019 Addendum.
Pre-Annexation Agreement - Terms
Execution of the proposed Agreements is not a project as defined by the California Environmental Quality Act (CEQA). Section 15061 (b) (3) of CEQA Guidelines and does not constitute project approval.
The Effective Date of the Sewer Agreement is when appropriate County approvals and entitlements and CEQA documents are prepared, approved and a Notice of Determination is filed by the County Housing and Community Development Department.
Provided the Sala Road Project is constructed, the City intends to apply to LAFCO to annex Target Area K and the Sala Road Project. Should the City proceed with an annexation application, it will be the lead agency for the application and associated CEQA compliance.
CEQA Consideration
Fiscal Impact
Sala Road Project
Owner, at no cost to the City, is to construct New Sewer Line Owner to pay City $64,600 fee for downstream infrastructure impacts City may incur future capital expenditures and other maintenance costs associated with the New Line and Disposal System upgrades Pre-annexation Agreement
City would receive new revenue from generated by future development in the proposed annexation area
Recommendation
Approve a resolution authorizing the Mayor to execute a Sewer Agreement and associated Reimbursement Agreement (Agreements) with Salinas 101 LLC (Owner) to establish the terms and conditions under which the City would allow connection to its wastewater collection and disposal system.
Approve a resolution authorizing the Mayor to execute a Pre-Annexation Agreement with the County of Monterey for portions of Economic Development Element Economic Opportunity Area K (EDE EOA K).