HomeMy WebLinkAboutCC Reso 2024-32 - Tax Sharing Agreement with Mendo Co RESOLUTION 2024-32
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF UKIAH APPROVING THE
MENDOCINO COUNTY MASTER TAX SHARING AGREEMENT AMONG MENDOCINO COUNTY
AND THE CITIES OF UKIAH, WILLITS, FORT BRAGG AND POINT ARENA AND MAKING
CERTAIN FINDINGS OF EXEMPTION
WHEREAS:
1. Mendocino County ("County") collects Real Property Tax Revenue within its jurisdiction; and
2. The California Department of Tax and Fee Administration, formerly part of the State Board of
Equalization, administers the Statewide general tax on the retail sale or use of merchandise or
goods within the State (the "Bradley-Burns Sales Tax"); and
3. The California Department of Tax and Fee Administration collects the 1% Bradley-Burns Sales
Tax on behalf of cities and counties in the State and distributes the revenue to those local
governments; and
4. Each Party levies a transient occupancy tax on those territories within its jurisdiction; provided,
however, that the County does not levy a separate transient occupancy tax in areas within a
City's jurisdiction; and
5. The Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000 (the TKH Act")
governs changes in organization which changes in organization may need to be approved by
the Mendocino LAFCo, and other local agencies; and
6. The City of Ukiah together with the cities of Willits, Fort Bragg and Point Arena (collectively, "the
Cities") anticipate changes in organization within the County, such as Annexations to the Cities,
and desire to plan for the orderly and financially viable transition of public services; and
7. The County and the Cities intend the Agreement to provide an equitable approach to distributing
certain identified tax revenues in anticipation of changes in organization; and
8. Recognizing that the residents of the Cities are also residents of the County, the County and
the Cities acknowledge their shared responsibility to provide adequate services to their shared
residents and recognize the importance of the County's and the Cities' services and that those
services complement each other for the benefit of their residents; and
9. The Parties recognize the importance of maintaining adequate service levels throughout the
County and within the Cities to provide for the health, safety, and welfare of the residents of the
County and the Cities. The Parties intend, given the mutual economic and other benefits that
flow from annexations to the Cities, to cooperate as provided for in the Agreement to address
the respective City's and the County's fiscal considerations in providing such services and their
respective present and future economic and planning needs; and
10. For certain changes of organizations, such as annexations, Revenue and Taxation Code
Section 99 requires an agreement of the City and the County to a property tax revenue
exchange and to provide a resolution of approval of the same by each legislative body to
Mendocino LAFCo prior to consideration of the change of organization; and
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11. Accordingly, and as provided for in Revenue and Taxation Code Section 99(d), the County and
the Cities have negotiated a master property tax exchange agreement that is intended to satisfy
the requirements of Revenue and Taxation Code Section 99 for future changes of organization
as specified in the Agreement; and
12. While not required by Revenue and Taxation Code Section 99, the Parties acknowledge that
the Agreement also provides for the exchange of Bradley-Burns Sales Tax and transient
occupancy tax which the Parties agree to accept in accordance with the Agreement; and
13. Any changes in organization that may trigger the tax sharing provisions in the Agreement and
any resulting environmental effect are, at this point, entirely speculative and undefined and will
be subject to the appropriate level of environmental review at the time any such change in
organization is proposed; and
14. The City has reviewed the Agreement and the provisions of the California Environmental Quality
Act, Public Resources Code sections 21000, et seq., ("CEQA") and has considered whether
any direct or indirect physical change to the environment will result from entering the Agreement
and has considered whether entering the Agreement may possibly have a significant effect on
the environment.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Ukiah, as follows:
Section 1. The Council hereby approves the Mendocino County Master Tax Sharing Agreement
("the Agreement"), a true and correct, but unsigned, copy of which is attached hereto as Attachment
1.
Section 2. The Council hereby finds that entering the Agreement is exempt from CEQA as provided
for in Title 14, section 15061 (b)(3), of the California Code of Regulations as entering the Agreement Ij
is an entirely financial matter and there is no possibility the Agreement will have a significant effect
on the environment, and as provided for in Title 14, section 15301, of the California Code of
Regulations as the Agreement will result in no expansion or use of existing facilities and there is no
reasonable possibility that the Agreement will have a significant effect on the environment effect due
to unusual circumstances.
Section 3. The Council authorizes the Mayor to sign the Agreement on behalf of the City of Ukiah.
PASSED AND ADOPTED this 19th day of June 2024, by the following roll call vote:
AYES: Councilmembers Rodin, Orozco, Crane, and Mayor Duenas
NOES: None
ABSENT: Councilmember Sher
ABSTAIN: None
J sefin uena , Mayor
ATTEST:
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Kristine Lawler, City Clerk
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Attachment 1
MENDOCINO COUNTY
MASTER TAX SHARING AGREEMENT
THIS MASTER TAX SHARING AGREEMENT (this "Agreement") is entered by and
between the County of Mendocino, a subdivision of the State of California(the "County"), the
City of Fort Bragg("Fort Bragg"), the City of Point Arena ("Point Arena"), the City of Ukiah
("Ukiah"), and the City of Willits ("Willits") (the Cities shall be collectively referred to herein
as the "Cities"), each City being a California municipal corporation, as of the date it is executed
on behalf of the last of the Parties to do so (the "Effective Date"). The Cities, each of them, and
the County may sometimes be referred to herein individually as a"Party" or collectively as the
"Parties"to this Agreement.
RECITALS
WHEREAS, the County collects Real Property Tax Revenue within its jurisdiction; and
WHEREAS, the California Department of Tax and Fee Administration, formerly part of the
State Board of Equalization, administers the State-wide general tax on the retail sale or use of
merchandise or goods with the State (the "Bradley-Burns Sales Tax"); and
WHEREAS, the California Department of Tax and Fee Administration collects the 1%Bradley-
Burns Sales Tax on behalf of cities and counties in the State and distributes the revenue to those
local governments; and
WHEREAS, each Party levies a transient occupancy tax on those territories within its
jurisdiction;provided, however,that the County does not levy a separate transient occupancy tax
in areas within a City's jurisdiction; and
WHEREAS, the Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000 (the
"CKH Act") governs changes in organization, including annexations such as those contemplated
in this Agreement, and which changes in organization may need to be approved by the
Mendocino LAFCo, and other local agencies; and
WHEREAS, the Parties anticipate changes in organization within the County, such as
Annexations to the Cities, and desire to plan for the orderly and financially-viable transition of
public services; and
WHEREAS,the Parties intend this Agreement to provide an equitable approach to distributing
certain identified tax revenues in anticipation of changes in organization; and
WHEREAS, recognizing that the residents of the Cities are also residents of the County, the
Parties acknowledge their shared responsibility to provide adequate services to their shared
residents and recognize the importance of the County's and the Cities' services and that those
services complement each other for the benefit of their residents; and
WHEREAS, the Parties recognize the importance of maintaining adequate service levels
throughout the County and within the Cities to provide for the health, safety, and welfare of the
residents of the County and the Cities. The Parties intend, given the mutual economic and other
benefits that flow from annexations to the Cities, to cooperate as provided for in this Agreement
to address the respective City's and the County's fiscal considerations in providing such services
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and their respective present and future economic and planning needs; and
WHEREAS, for certain changes of organizations, such as annexations, Revenue and Taxation
Code section 99 requires an agreement of the city and the county to a property tax revenue
exchange and to provide a resolution of approval of the same by each legislative body to
Mendocino LAFCo prior to consideration of the change of organization; and
WHEREAS,the Parties intend this Agreement to satisfy the requirements of Revenue and
Taxation Code section 99; and
WHEREAS, initiatives like the California Business Roundtable's AG#21-0042A1 Initiative
threaten local funding measures and may limit or restrict the ability to overlay local transaction
and use taxes of an annexing entity to newly annexed territory.
AGREEMENT
NOW,THEREFORE, the Parties agree as follows:
1. Incorporation of Recitals.
The above Recitals are true and correct and are hereby incorporated into this Agreement.
2. Definitions.
The following terms as used in this Agreement shall have the following meanings:
"Annexation(s)" shall have the meaning set out in Government Code section 56017 or
its successor, and any reorganization that includes an annexation.
"Annexed Area(s): shall mean territory or territories which have been approved for
annexation by Mendocino LAFCo.
"Annexation Effective Date" shall mean the date of the particular annexation, as may be
specified in Mendocino LAFCo's terms and conditions or by Government Code section 57202;
provided, however, that such date falls after the Effective Date.
"Annexor City" shall mean a City Party that is planning,pursuing, or has completed an
Annexation.
"Annexed Tax Rate Area" ("ATRA" or"ATRAs") shall mean any separate Tax Rate
Area created for territory annexed after the Effective Date.
"Change of Organization" shall mean the definition provided for in the CKH Act at, as
of the Effective Date, Government Code section 56021 and shall also include a"reorganization"
as defined in Government Code section 56073.
The "Designated Fort Bragg Area" shall mean that territory described in the attached
Exhibit A.
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The "Designated Ukiah Area" shall mean that territory described in the attached
Exhibit B.
"Fiscal Year" shall mean July 1st through June 30th of the following year.
The"Fort Bragg Balance Area" shall mean that territory described in the attached
Exhibit A.
"Distribution" shall mean the allocation and provision of tax revenue from one Parry to
another Party as provided for in this Agreement in order to satisfy the requirements of Revenue
and Taxation Code section 99.
"Mendocino LAFCo" shall mean the Mendocino County Local Agency Formation
Commission.
"Property Tax Revenue" shall mean revenues derived from ad valorem taxes on real
property and from other categories of secured and unsecured property taxes including and not
necessarily limited to those described in the County's annual distribution as Current Secured
General, Current Unsecured General, Prior Secured General, Prior Unsecured General, SB 813
Supplemental General, Highway Property Rental, and HOPTR General.
"Sales Tax Revenue" shall only mean those taxes collected in accordance with Bradley-
Burns.
"State Action" shall mean any legislative,judicial, and/or voter-approved initiative
action that limits a City's ability to apply a City-approved transaction and use tax to an Annexed
Area.
"Tax Rate Area" ("TRA" or"TRAs") shall mean those base tax revenue and/or
incremental tax revenues available from an identified area.
"Transient Occupancy Tax Revenue" ("TOT Revenue") shall mean any tax lawfully
imposed as an incident of short-term transient occupancy and excludes any revenue collected as
the result of a City-specific tax measure that is greater than that collected by the County.
The"Ukiah Balance Area" shall mean that territory described in the attached Exhibit B.
3. Tax Distributions for Annexations.
a. Scope. As provided for in this Agreement and in no way expanding the provisions
in subparagraph 3(b) to apply to any City other than Fort Bragg and Ukiah, the tax
collection and distribution provisions in this Agreement shall apply to territory annexed
to a Party as of the respective Annexation Effective Date. Prior to adopting a resolution
of application to initiate a Change of Organization that includes an Annexation, the
respective City shall meet with the County to consult on the proposed Change of
Organization. During this consultation, the respective City shall provide to the County a
map of the territory, a list of the APNs of the affected territory, and, if the City is subject
to Paragraph 3(b), evidence that the proposal is Balanced. The date of this transmittal
shall be referred to in this Agreement as the "Change of Organization Proposal Date".
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b. Balanced Annexations. This subparagraph 3(b) shall apply only to the Cities of
Fort Bragg and Ukiah. A proposal to annex territory within the respective Designated
Area of Fort Bragg or Ukiah must be "Balanced" in accordance with this Paragraph 3.
Balanced Annexation(s) of such territory shall be referred to in this Agreement as a
"Balanced Annexation(s)".
i. The Parties shall presume that an Annexation of territory is a Balanced
Annexation if Annexation of territory within a Designated Area is attended by
annexing at least 98% of the same amount of territory of the respective Annexor
City's Balance Area;provided, however, that Annexation of territory within a
Balance Area on or after the Effective Date that was not used for balancing purposes
in the prior annexation shall be credited toward the presumption of a Balanced
Annexation.
ii. The Parties acknowledge that Mendocino LAFCo has the authority, and may, in
the course of its review of the Change of Organization alter the boundaries of the
proposed Change of Organization in a manner that causes the Annexation to no
longer be a Balanced Annexation, in which case the County can request an additional
30 day negotiating period, and, in that event, a new property tax exchange agreement
would have to be negotiated pursuant to Revenue and Taxation Code section 99(b)(7)
or the Mendocino LAFCo proceeding would terminate.
C. The Parties will, in accordance with law,take good faith and reasonable steps to
implement the Agreement as soon as is feasible. Any dispute between the Parties
regarding this subparagraph 3(c) shall be resolved in accordance with the dispute
resolution process set forth in Paragraphs 5 and 12.
4. Tax Revenue Collection and Distribution.
Only the following taxes and tax collection and distribution provisions shall apply, as
appropriate and described in this Paragraph 4, as of the relevant Annexation Effective Date. This
Agreement shall not be construed to require an allocation of taxes to a City which are designated
for a County service, such as the County library, over which the respective City shall not be
assuming responsibility; nor shall this Agreement be construed to expand or reduce the
categories of Property Tax Revenue distributed to a City as reflected in the County's distribution
of said revenues as of the Effective Date of this Agreement.
a. Property Tax Revenue Collection and Distribution. As of the relevant Annexation
Effective Date,the County shall distribute to the Annexor City the County's general fund
property tax revenue (County Auditor's Fund Code A0001) generated in the annexation
area as follows:
i. Half of the County's portion of the "annual tax increment" (as defined in Revenue
and Taxation Code section 96.5 as of the Effective Date) that does not exceed 2% of
the property tax revenue in the prior year from the annexation area.
ii. All of the County's portion of the "annual tax increment"that exceeds 2% of the
property tax revenue in the prior year from the annexation area,until the total
property tax revenue received by the Annexor City equals 15% of the total property
tax revenue generated in the annexation area.
iii. Once the total property tax revenue received by the Annexor City equals 15% of
the total property tax generated in the annexation area, no additional portion of the
County's "annual tax increment" shall be distributed to the Annexor City. In other
words, the City's "property tax apportionment factor" (as calculated pursuant to
Revenue and Taxation Code section 96.2 as of the Effective Date) in the annexation
area shall not exceed 15%.
b. Bradley-Burns Sales Tax Revenue Collection and Distribution. As of the relevant
Annexation Effective Date,the Annexor City shall collect all Bradley-Burns Sales Tax in
the ATRA (the "ATRA Bradley-Burns Revenue") and shall distribute to the County a
share of the ATRA Bradley-Burns Revenue in accordance with this subparagraph (b).
i. From the Annexation Effective Date until the start of the first full Fiscal Year
immediately following the Annexation Effective Date, the Annexor City shall
distribute to the County 100% of the ATRA Bradley-Burns Revenue.
ii. Thereafter, for each subsequent full Fiscal Year, the amount of ATRA Bradley-
Burns Revenue the Annexor City distributes to the County in accordance with this
Agreement shall be reduced by 1/15 (one-fifteenth)which the Parties agree shall be
rounded to 6.667%. Therefore, for the first full Fiscal Year, the Annexor City shall
distribute 93.333% of the ATRA Bradley-Burns Revenue to the County; for the
second full year, the Annexor City shall distribute 86.666% of the ATRA Bradley-
Burns Revenue to the County; for the third full year, the Annexor City shall distribute
79.999% of the ATRA Bradley-Burns Revenue to the County; and so forth, reducing
each subsequent year by 6.667%,until, as of the start of the fifteenth(15th) full Fiscal
Year following the Annexation Effective Date, the Annexor City shall no longer
distribute ATRA Bradley-Burns Revenue to the County.
iii. For any Distribution under this subparagraph (b), the Annexor City shall
distribute the ATRA Bradley-Burns Revenue to the County within thirty(30) days of
the Annexor City receiving the ATRA Bradley-Burns Revenue from the California
Department of Tax and Fee Administration.
C. Transient Occupancy Tax Revenue Collection and Distribution. As of the relevant
Annexation Effective Date, the Transient Occupancy Tax in the ATRA shall be the rate
of the Annexor City. The Annexor City shall collect the Transient Occupancy Tax in the
ATRA (the "ATRA TOT Revenue") and shall distribute to the County a share of the
ATRA TOT Revenue in accordance with this subparagraph (c).
i. From the Annexation Effective Date until the start of the first full Fiscal Year
immediately following the Annexation Effective Date, the Annexor City shall
distribute to the County 100% of the ATRA TOT Revenue.
ii. Thereafter, for each subsequent full Fiscal Year, the amount of ATRA TOT
Revenue the Annexor City distributes to the County in accordance with this
Agreement shall be reduced by 115 (one-fifth) or 20%. Therefore, for the first full
Fiscal Year, the Annexor City shall distribute 80%of the ATRA TOT Revenue to the
County; for the second full Fiscal Year, the Annexor City shall distribute 60% of the
ATRA TOT Revenue to the County; for the third full Fiscal Year, the Annexor City
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shall distribute 40% of the ATRA TOT Revenue to the County; and for the fourth full
Fiscal Year, the Annexor City shall distribute 20%of the ATRA TOT Revenue to the
County. As of the start of the fifth full Fiscal Year following the Annexation
Effective Date, the Annexor City shall no longer distribute ATRA TOT Revenue to
the County.
iii. For any Distribution under this subparagraph(c),the Annexor City shall distribute
ATRA TOT Revenue to the County within thirty (30) days of the Annexor City
collecting the ATRA TOT Revenue.
5. Reconciliation of Tax Revenue Collection and Distribution.
Upon the request of a Party to meet with another Parry regarding the collection and
Distribution of taxes between them in accordance with this Agreement, the respective Parties
shall make all reasonable efforts to meet within thirty(30) days of such a request.
6. Modification of Sales Tax Revenue Distribution Due to State Action.
Should State Action be taken that limits a City's ability to automatically apply a City-
approved transaction and use tax to an Annexed Area, the affected Parties shall promptly meet
and negotiate in good faith to amend this Agreement to address the resulting financial impacts in
accordance with Paragraph 12, to include the Core Principles.
7. Regional Housing Needs Plan Allocation.
a. The Parties agree: a)the County's Regional Housing Needs Plan(the "RHNP")
allocation was based on its unincorporated lands; b) subsequent Annexation(s) may limit
the County's ability to satisfy its obligations under the Housing Element Law; and c) the
RHNP allocation should be adjusted to reflect the impact of an Annexation on the
County's obligations under the Housing Element Law. Therefore,the Parties agree, in the
event that the relevant City or a non-party proposes to annex a specific territory, the
relevant Parties will work together in good faith to attempt to reach a mutually acceptable
agreement to transfer a portion of the County's allocation to the relevant City.
b. The following general principles shall be used as a framework to reach such an
agreement:
i. Where a City Annexation includes undeveloped territory that the relevant City's
general plan and prezoning proposes for residential development, a portion of the
County's Reginal Housing Needs Allocation("RHNA") shall be transferred to the
City in an amount equal to potential residential units, including accessory dwelling
units ("ADU's"). This transfer shall be calculated by using the City's prezoning for
each legal parcel. Should the territory include an approved subdivision, units will be
transferred as identified on the approved tentative map or project description. If such
transferred number of units is fewer than the number of units such territory is
designated for in the County General Plan or in the Residential Sites Inventory of the
County's Housing Element, the relevant City and the County shall negotiate in good
faith the amount to be transferred.
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ii. Where a City Annexation includes developed territory that the relevant City
designates and prezones for residential purposes, a portion of the County's RHNA
would be transferred to the relevant City in an amount equal to the unrealized units on
underutilized properties for that area;provided, however, that such transfer shall not
include ADUs or existing mobile home parks. This transfer shall be calculated by
using the relevant City's prezoning for each legal parcel. If such transferred number
of units is fewer than the number of units such territory is designated for in the
County General Plan or in the Residential Sites Inventory of the county's Housing
Element, the relevant City and the County shall negotiate in good faith the amount to
be transferred.
iii. Where a City Annexation includes territory that the relevant City's general plan
and prezoning proposes for commercial or industrial purposes, no adjustment of the
RHNP shall be required, unless the proposed Annexation includes commercial
territories on the Residential Sites Inventory of the County's Housing Element, in
which case an amount equal to the identified residential units would be transferred to
the relevant City.
C. The income-level of transferred units shall be negotiated in good faith per the
existing MCOG Annexation policy and State law. The Parties acknowledge that meeting
the need in the lower income category requires higher residential densities and proximity
to services, that an Annexation may result in the loss of lands that would otherwise be
available to the County to meet the lower income obligations, and that such losses are an
important factor in the good faith negotiations.
d. Should a City seek to annex unincorporated territory for the purposes of open-
space, agriculture or public facilities, no adjustment of the RHNP shall be required,
unless any portion of the territory is designated for residential development in the
County's Residential Sites Inventory of the county's Housing Element, in which case the
parties shall negotiate a transfer in good faith.
e. If the County has already fulfilled its RHNA obligations for the current Housing
Element Cycle, no modification of the RHNP allocation shall be required.
8. Other Agreements Affecting Rights and Obligations of This Agreement.
Notwithstanding anything in this Agreement to the contrary, this Agreement does not
preclude one or more of the Parties from entering separate agreements regarding particular
Annexations;provided, however, that nothing in any separate agreement shall affect the rights
and obligations of those Parties not party to that separate agreement. To the extent terms in any
such separate agreement are found to be in direct conflict with a term(s) in this Agreement as it
relates to a Party which is not a party to the separate agreement, the term(s) in this Agreement
shall control over those in the separate agreement.
9. Term of this Agreement.
This Agreement shall remain in effect for an initial term of twenty (20) years as of the
Effective Date and shall then and thereafter have a rolling extension that automatically renews
this Agreement every year for an additional five (5) years.
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10. Withdrawal; Termination.
a. A Party may only withdraw from this Agreement with a July 1st effective date(the
"Withdrawal Date") and on no less than five (5)years' notice to all other Parties in
accordance with Paragraph 13. Such withdrawing Party shall perform all obligations
under this Agreement until the Withdrawal Date. A withdrawing Party shall remain
obligated to perform the obligations in this Agreement, including financial obligations,
arising before the Withdrawal Date, even after the Withdrawal Date.
b. This Agreement may only be terminated either: a)by written notice by the County
of termination to the other Parties; or b)by unanimous written agreement of all Parties to
this Agreement (either of which shall be referred to herein as "Notice of Termination");
provided, however, that,unless otherwise agreed to in writing, any termination may only
take effect as of July 1st and no sooner than five (5) years after the Notice of Termination
(the "Termination Date"). Upon Notice of Termination, the Parties shall remain obligated
to perform the obligations in this Agreement, including financial obligations, arising
before the Termination Date, even after the Termination Date.
11. Amendment; Related Tax-Sharing Agreements.
a. Any amendment to this Agreement shall be negotiated in good faith and in
accordance with the following Core Principles:
1. Simplicity: any amendment should be understandable,not unreasonably
complicated, and readily-implemented and verified.
2. Mutual benefit through economic growth.
3. Maintain normal revenue sources for the respective Party: for example, the
majority of property taxes should continue to go to the County and Bradley Burns
Sales Tax Revenue should go to the respective City.
4. Protect funding for County-wide services and relieve ongoing service costs.
5. Provide the respective City with appropriate financial resources to meet assumed
municipal service costs.
b. Any amendment to this Agreement must be approved in writing by unanimous
consent of all Parties;provided,however,that any amendment to this Agreement which
affects only certain Parties (a"Related Tax Sharing Agreement") may be agreed to by
only those certain Parties so long as such Related Tax Sharing Agreement is in writing
and notice is provided to the other Parties to this Agreement.
12. Dispute Resolution.
a. If, at any time during the term of this Agreement, any dispute arises between or
among the Parties regarding the interpretation or implementation of this Agreement,
including an alleged breach of this Agreement, the Parties will, in the first instance,
attempt in good faith to meet to discuss and informally resolve the dispute through
designated representatives. The Parties must give written notice of the existence and
subject of a dispute ("notice of dispute"), which notice shall commence the dispute
resolution process of this Agreement.
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b. If, within thirty(30) days of service of a notice of dispute,unless extended by
mutual agreement of the respective Parties, the respective Parties have not resolved the
dispute through informal mediation, ,the matter shall be submitted to the Judicial
Arbitration and Mediation Service (JAMS), or an equivalent mediation service, or a
mutually agreeable mediator, for formal mediation by a single mediator who should have
technical or legal expertise or experience with public financing, taxation, and local
government agencies. The mediator will be selected by unanimous consent of the
respective Parties, but if unanimous consent cannot be obtained, the mediator will be
selected at random from a list of mediators to be provided by the respective Parties.
C. Any Parry may commence formal mediation by providing to the mediator and the
other Parties a written request for mediation, setting forth the subject of the dispute and
the relief requested. If the formal mediation process has not concluded or has not
resolved the dispute within sixty(60) days of a written request for mediation, the
mediation process will be deemed completed,unless the Parties extend the sixty-day
period in writing.
d. If the dispute is not resolved by informal or formal mediation, each Party will be
free to pursue whatever legal or equitable remedies may be available. No Party shall be
permitted to file a legal action without first complying with the requirements of this
Paragraph. This provision shall not waive or otherwise affect the applicable provisions of
law governing claims against a public entity or the applicable statutes of limitation.
e. The fees and expenses incurred as a result of any dispute resolution activities,
including attorney fees,mediator fees and costs, expert costs, and other expenses, shall be
borne solely by the Parties involved in the dispute and participating in the mediation.
The Parties involved in the dispute will share the mediator's expenses on an equal basis.
Should a dispute go to trial before a court of competent authority and jurisdiction, the
prevailing party in such court proceeding shall be entitled to recover their reasonable
attorney fees and costs;provided, however, that such attorney fees and costs shall not
include fees and costs associated with efforts preceding the court proceeding.
13. Notices.
Whenever notice or other communication is permitted or required by this Agreement, it
shall be deemed given: (i)when personally delivered; or(ii)when received, if delivered by
overnight courier or email (if email receipt is acknowledged in writing); or(iii) forty-eight(48)
hours after it is deposited in the United States mail with proper first-class postage affixed thereto
and addressed as follows:
To County: County of Mendocino
Attn: Board Chair and Chief Executive Officer
501 Low Gap Road
Ukiah, CA 95482
Email: ceo@mendocinocounty.gov
To City of Fort Bragg: City of Fort Bragg
Attn: Mayor and City Manager
416 N. Franklin Street
Fort Bragg, CA 95437
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Email: iwhippy@fortbragg.com
To City of Point Arena: City of Point Arena
Attn:Mayor and City Manager
451 School Street
Point Arena, CA 95468
Email:cm@pointarena.ca.gov
To City of Ukiah City of Ukiah
Attn: Mayor and City Manager
300 Seminary Avenue
Ukiah, CA 95482
Email: cmoffice@cityofukiah.com
To City of Willits City of Willits
Attn: Mayor and City Manager
I I I E. Commercial Street
Willits, CA 95490
Email: dpederson@cityofwillits.org
14. No Third-Party Beneficiary Rights.
This Agreement is only for the benefit of the Parties and shall not be construed as or
deemed to operate as an agreement for the benefit of any third party or parties, and no third party
or party shall have any right of action or obtain any right to benefits or position of any kind by
reason of this Agreement.
15. Assignment; Dele ate
No Party shall assign, sublet, or transfer any interest in this Agreement or any duty
hereunder without written consent of the other Parties, and no assignment shall be of any force or
effect whatsoever unless and until the other Parties shall have so consented.
16. Hold Harmless; Indemnity.
To the fullest extent permitted by law, each of the Parties (the "Indemnifying Party")
agrees to save, indemnify, defend and hold harmless each other Party and its officers, agents and
employees ("Indemnified Parties") from any liability, claims, suits, actions, arbitration
proceedings, administrative proceedings, regulatory proceedings, losses, expenses, or costs of
any kind,whether actual, alleged or threatened, including attorney fees and costs, court costs,
interest, defense costs, and expert witness fees, which arise out of, or are in any way attributable
in whole or in part to, negligent or intentionally wrongful acts or omissions of an Indemnifying
Party or its employees except such losses to the extent caused by the negligence or intentionally
wrongful act of an Indemnified Party.
17. Entire Agreement; Counterparts.
This Agreement, including its exhibits and any attachments, is intended both as the final
expression of the Agreement among the Parties with respect to the included terms and as a
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complete and exclusive statement of the terms of the Agreement. This Agreement may be
transmitted electronically and executed in counterparts, each such executed electronic copy shall
be admissible for any purpose and in any judicial or administrative proceeding as evidence of the
agreement between the Parties. Signatures may be exchanged by emailed pdf or other electronic
form with the same force as original signatures.
18. Agreement Controlling; Exhibits.
In the event of a conflict between the text of this Agreement and any attachment to it, the
text shall prevail. All exhibits to which reference is made are incorporated into this Agreement as
though fully set forth at length,whether or not actually attached.
19. Construction.
This Agreement shall not be construed against any Party in the event of an ambiguity.
The transactions contemplated in this Agreement have been negotiated at arms-length,between
persons sophisticated and knowledgeable in the matters dealt with in this Agreement.
Accordingly, any rule of law or legal decision that requires interpretation of ambiguities against
the Party who has drafted it is inapplicable and waived. The provisions of this Agreement shall
be interpreted in a reasonable manner to effectuate the intent and purposes of the Parties to this
Agreement as if they had been jointly drafted by the Parties. The headings and sub-headings in
this Agreement are intended solely to assist the reader and are in no way intended to create
binding terms between the Parties.
20. Governing
This Agreement shall be governed by and construed in accordance with the laws of the
State of California.
21. Severability.
Should any part, term, portion, or provision of this Agreement or the application thereof
to any person or circumstances be in conflict with any State or Federal law, or otherwise be
rendered unenforceable or ineffectual, including by amendment or repeal of a statute,the validity
of the remaining parts, terms,portions or provisions, or the application thereof to other persons
or circumstances shall be deemed severable and shall not be affected thereby,unless the
remaining portions of the Agreement no longer provide for an equitable approach to distributing
certain identified tax revenues or unless the Agreement cannot be construed in substance to
continue to constitute the Agreement that the Parties intended to enter into in the first instance.
22. Warranty of Legal Authority.
The Parties' Legislative Bodies have each authorized execution of this Agreement, as
evidenced by the signatures below. Those who sign below warrant for the benefit of the Parties
for which they do not sign that they have actual authority to execute this Agreement and to bind
to it the Party for which they sign.
IN WITNESSS THEREOF,the Parties have caused this Agreement to be executed and attested
by their proper officers thereunto duly authorized as of the Effective Date.
14
COUNTY OF MENDOCINO
Date: By:
Maureen Mulheren, Chair of the Board of
Supervisors
Approved to Form:
County Counsel
Attest:
County Clerk
CITY OF FORT BRAGG
Date: By:
Mayor
Approved to Form:
City Attorney
Attest:
City Clerk
CITY OF POINT ARENA
Date: By:
Mayor
Approved to Form:
City Attorney
Attest:
15
, City Clerk
CITY OF UKIAH
Date: By:
Mayor
Approved to Form:
City Attorney
Attest:
Kristine Lawler, City Clerk
CITY OF WILLITS
By:
Mayor
Approved to Form:
City Attorney
Attest:
, City Clerk
16
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it Municipal Improvement District IL City of Fort Bragg 50I MASTER TAX SHARE AGREEMENT
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■Ukiah Designated Area City Limits
MASTER TAX SHARE AGREEMENT 0 0.375 0.75 Miles 1:42,000
.Ukiah Balance Area
18
�vnruRl'ICLi 4VF'T
Copyy of Document Recorded on
06/Z4/2024 11:13:12 AM
as 2024-EO049
Mendocino County Clerk-Recorder
City of Uk
NOTICE OF CEQA EXEM
TO: X Office of Planning and Research FROM: City of Ukiah
1400 Tenth Street, Room 121 300 Seminary Avenue
Sacramento, CA 95814 Ukiah, CA 95482
X County Clerk: County of Mendocino
501 Low Gap Rd # 1020
Ukiah, CA, 95482
PROJECT TITLE: Mendocino County Master Tax Sharing Agreement
PROJECT LOCATION: Unincorporated areas of Mendocino County and
incorporated areas of the Cities of Ukiah, Willits, Fort
Bragg, and Point Arena
DESCRIPTION OF PROJECT: The project consists of a Master Tax Sharing
Agreement Among Mendocino County and the Cities
of Ukiah, Willits, Fort Bragg, and Point Arena
PUBLIC AGENCY APPROVING PROJECT: City of Ukiah City Council
DATE OF APPROVAL: June 19, 2024
NAME OF PROJECT APPLICANT: City of Ukiah
CEQA EXEMPTION STATUS:
X Other: Title 14, Section 15061 (b) (3), "Common Sense" Exemption
❑ Ministerial
❑ Declared Emergency
X Categorical Exemption: Title 14, Section 15301, Existing Facilities Exemption
❑ Statutory Exemption Section
REASONS WHY PROJECT IS EXEMPT:
Entering the Agreement is exempt from the requirements of the California Environmental Quality Act,
Public Resources Code sections 21000, et seq. ("CEQA"). First, the Agreement is exempt pursuant to
Title 14, section 15061 subd. (b)(3), of the California Code of Regulations. This exemption makes
clear that CEQA only applies to projects which have the potential to cause a significant effect on the
environment. Entering the Agreement merely provides a financial mechanism for the collection and
distribution of taxes between the parties. The Agreement will not disturb, disrupt, or otherwise affect
300 Seminary Avenue• Ukiah• CA• 95482-5400
Phone. (707)463-6200 • Fax: (707)463-6204•www.cityofukiah.com
( 06
City of Ukiah
the physical environment in any way. There will be no defined physical change to the environment
resulting from the Agreement.
Entering the Agreement is also exempt from CEQA in accordance with Title 14, section 15301, of the
California Code of Regulations. This exemption exempts the operation, repair, maintenance,
permitting, leasing, licensing, or minor alteration of existing public or private structures, facilities,
mechanical equipment, or topographical features, involving negligible or no expansion of use beyond
that existing at the time of the lead agency's decision. The key consideration under this Existing
Facilities exemption is whether the project involves negligible or no expansion of an existing use. The
Agreement will not result in the expansion of the existing use of private or public facilities because the
Agreement does not provide for any such expansion and the services provided through existing
facilities will not change solely due to the Agreement. While the Agreement enables future changes in
organization, any such change that may trigger the tax sharing provisions in the Agreement and any
resulting environmental effects are, at this point, entirely speculative and undefined and will be subject
to the appropriate level of environmental review at the time any such change in organization is
proposed.
For the same reason, no cumulative impacts are foreseeable as no defined changes in organization
are called for in the Agreement. Given the entirely administrative and financial changes provided for
by the Agreement, there is no reasonable possibility the Agreement will have a significant effect on
the environment due to unusual circumstances. Tax sharing agreements, including master tax sharing
agreements such as the Agreement, are well-established financial vehicles jurisdictions across the
state often avail themselves of and are provided for in the Revenue and Taxation Code. Therefore, in
accordance with Public Resources Code Section 21084 and the CEQA Guidelines at Title 14, as cited
above, the Agreement will not have a significant effect on the environment and is categorically exempt
from the requirement for the preparation of environmental documents.
Lead Agency Contact Person Craig Schlatter, AICP
Director of Community Development
Phone Number (707)463-6219
Email cschlatter(&cityofukiah.com
This is to certify that the record of project approval is available to the General Public at:
Community Development Department, Ukiah Civic Center, 300 Seminary Avenue, Ukiah, CA 95482
June 24, 2024 Director of Community
GT�-�`�-'Z _ Development
Signaty (Public Agency) (Date) (Title)
300 Seminary Avenue- Ukiah -CA- 95482-5400
Phone. (707)463-6200 •Fax- (707)463-6204-www.cityofukiah.com
Katrina Bartolomie,Clerk-Recorder
Mendocino County,CA
501 Low Gap Rd., Room 1020
Ukiah,Ca 95482
Receipt: 24-7444
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*Pages 1
Document# 2024_0042
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Mon Jun 24 11:13:12 PDT 2024 deena4