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 Lisa Brinton, Assistant Director
Housing and Land Use Committee
March 29, 2022
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
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
acknowledges the foreseeable annexations
reaffirms coordination of land use entitlement and CEQA compliance as agreed to in the GSA-MOU 2019 Addendum, and analyzes the property tax and revenue sharing formulas between the City and the County.
Pre-Annexation Agreement
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
Recommend that the City Council 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.
Recommend that the City Council 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).