RESOLUTION NO. (N.C.S.)
RESOLUTION BY THE SALINAS CITY COUNCIL AUTHORIZING THE MAYOR TO EXECUTE AN EXTRATERRITORIAL WASTEWATER SERVICE AGREEMENT AND ASSOCIATED REIMBURSEMENT AGREEMENT WITH SALINAS 101 LLC WHEREAS, in 2006, the City and the County entered into the Greater Salinas Area Memorandum of Understanding (the “GSA-MOU”) to establish a broad policy framework to govern and to facilitate land use decisions in the area designated in the then-existing General Plan of the County as the “Greater Salinas Area” and in or adjacent to the City and its Sphere of Influence (SOI); and WHEREAS, the GSA-MOU identified specific objectives to be achieved through the implementation of land use and associated policies for the preservation of certain agricultural land, the provision of future growth areas, and the provision of adequate financing for the services and the facilities of benefit to the residents of the City and of the County; and WHEREAS, since the City and the County’s approval of the GSA-MOU, the City has adopted an Economic Development Element (EDE, 2017) to its General Plan (2002) and the County has adopted an updated General Plan (2010); and WHEREAS, in its EDE the City identified an area outside the City’s current northern boundary as a future opportunity area for economic development. Area K, shown and marked on Attachment 1, is comprised of a Target Area K (“Target Area K”), where near to mid-term development is projected by the City, and an Economic Development Reserve area (“Reserve Area K”), also identified on Attachment 1, which is to accommodate the City’s longer-term economic development needs; and WHEREAS, recognizing that the GSA-MOU needed to be updated to reflect current land use development plans and current planned or contemplated development projects, and desiring to cooperate in the planning of certain development projects either within the current boundaries of the City or its adopted SOI, or within those areas identified in the City’s EDE, the City and County entered into an Addendum to the GSA-MOU in June 2019; and WHEREAS, Salinas 101 LLC (Owner) has submitted an application to the County of Monterey to develop a commercial project on approximately 17.5 acres that is located within the County’s jurisdiction adjacent to Target Area K and within the Reserve Area K near the intersection of Sala and Harrison Roads (Sala Road or Sobel Project), as identified on Attachment 1; and WHEREAS, the County will not deem Owner’s application complete without a wastewater treatment plan; and WHEREAS, since neither the County nor any other public agency currently provides wastewater service to the Property, Owner has requested a Will Serve Letter from the City to connect to its wastewater collection and disposal system; and WHEREAS, City currently owns and operates a wastewater collection system which collects wastewater originating in its service area and conveys that wastewater through the City collection and disposal system (Disposal System); and WHEREAS, current city policy allows for connection and service from its Disposal System when future annexation into the City is contemplated as part of the project and/or supported by the project developers; and WHEREAS, extension of wastewater service outside the City’s boundaries to a portion of the unincorporated County will require agreement by M1W (Monterey One Water), a Joint Powers Authority (JPA), to accept the wastewater. The property is within the M1W JPA boundaries and JPA’s are not subject to LAFCO action(s) to serve their customers; and WHEREAS, Owner and city staff have negotiated a final draft Extraterritorial Wastewater Service Agreement (Sewer Agreement) that states the terms and conditions by which the City will grant a Will Serve Letter for connection (New Sewer Line) to and service from the Disposal System for the Sala Road Project (Exhibit A); and WHEREAS, Owner and city staff have also negotiated a Reimbursement Agreement to outline the terms, conditions, methodology and process by which the Owner will be reimbursed by users or “Shared Parties” prior to future development in Target Area K and a proposed farm worker housing project connecting to the New Sewer Line (Exhibit B); and WHEREAS, execution of the Extraterritorial Wastewater Service and Reimbursement Agreement does not constitute approval of the Sala Road Project or New Sewer Line. Upon execution to the Sewer Agreement, the City will grant a Will Serve Letter for Owner to demonstrate it has a wastewater treatment plan so that the County may proceed to process Owner’s application and required California Environmental Quality Act (CEQA) compliance; and WHEREAS, 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 identifying any environmental impact and proposed mitigation resulting from the proposed Sala Road Project and New Sewer Line is filed by the County Housing and Community Development Department; and WHEREAS, provided the Sala Road Project is constructed, the City intends to submit and application to LAFCO to annex the Sala Road Project and Target Area K land area (Annexation Area; and WHEREAS, City and County have negotiated a pre-annexation agreement to reaffirm coordination of land use entitlement and CEQA compliance as agreed to in the GSA-MOU 2019 Addendum, and to outline the timing and process to establish property tax and revenue sharing formulas between the City and the County to ensure the Parties’ capacity to adequately provide the necessary services to the proposed Annexation Area; and WHEREAS, at the same meeting, the City Council approved a Resolution ________(N.C.S.) authorizing the execution of the Pre-Annexation Agreement for portions of EOA K between the City and County; and WHEREAS, the City of Salinas has therefore determined that the action of authorizing the execution of the proposed Agreements is not a project as defined by CEQA. Section 15061 (b) (3) of CEQA Guidelines states that when it can be seen with certainty that there is no possibility that the activity in question, in this case the execution of the Agreements, may have a significant effect on the environment, the activity is not subject to CEQA.
NOW, THEREFORE, BE IT RESOLVED that the Salinas City Council hereby affirms the foregoing recitations are true and correct, and are included herein by reference as findings, and authorizes the Mayor to execute an Extraterritorial Wastewater Service Agreement (Exhibit A) and associated Reimbursement Agreement (Exhibit B) with Salinas 101 LLC.
PASSED AND APPROVED this 22nd day of March 2022, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
APPROVED:
________________________
Kimbley Craig, Mayor
ATTEST:
_________________________
Patricia M. Barajas, City Clerk
Attachment
Northern Area - Economic Opportunity Area Map
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