HomeMy WebLinkAbout2026-03-25 CC PacketPage 1 of 2
City Council
Special Meeting
AGENDA
(to be held both at the physical and virtual locations below)
Civic Center Council Chamber ♦ 300 Seminary Avenue ♦ Ukiah, CA 95482
To participate or view the virtual meeting, go to the following link: https://us06web.zoom.us/j/83943710016
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• Call (toll free) 1-888-788-0099
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Alternatively, you may view the meeting (without participating) by clicking on the name of the meeting at
www.cityofukiah.com/meetings.
March 25, 2026 - 3:30 PM
1. ROLL CALL AND PLEDGE OF ALLEGIANCE
2. AUDIENCE COMMENTS ON NON-AGENDA ITEMS
The City Council welcomes input from the audience. If there is a matter of business on the agenda that you are interested in,
you may address the Council when this matter is considered. If you wish to speak on a matter that is not on this agenda that is
within the subject matter jurisdiction of the City Council, you may do so at this time. In order for everyone to be heard, please
limit your comments to three (3) minutes per person and not more than ten (10) minutes per subject. The Brown Act regulations
do not allow action to be taken on audience comments in which the subject is not listed on the agenda.
3. UNFINISHED BUSINESS
3.a. Re-Adoption of a Resolution Approving a Zero Tax Share Agreement Between the City of Ukiah
and the County of Mendocino for the Ukiah Corporation Yard Annexation (1 Carousel Lane),
Local Agency Formation Commission (LAFCo) File No. A-2025-06.
Recommended Action: Re-Adopt a resolution approving a Zero Tax Sharing Agreement between
the City of Ukiah and the County of Mendocino for the Ukiah Corporation Yard Annexation (1
Carousel Lane), LAFCo File No. A-2025-06.
Attachments:
1. 1 Carousel Lane - Tax Share Agreement - LAFCo A-2025-06)
2. Draft Resolution
4. NEW BUSINESS
5. CLOSED SESSION - CLOSED SESSION MAY BE HELD AT ANY TIME DURING THE MEETING
Page 1 of 24
Page 2 of 2
5.a. Conference with Legal Counsel – Anticipated Litigation
(Government Code Section 54956.9(d)(4))
Initiation of litigation (2 cases)
5.b. Conference with Legal Counsel – Anticipated Litigation
(Government Code Section 54956.9(d)(2))
Significant exposure to litigation (1 case)
5.c. Conference with Legal Counsel – Existing Litigation
(Government Code Section 54956.9(d)(1))
Name of case: Nui Rising Moon Trust v. City of Ukiah, et al.; Case No. 3:25-cv-08320
5.d. Conference with Legal Counsel – Existing Litigation
(Government Code Section 54956.9(d)(1))
Name of case: Vichy Springs Resort v. City of Ukiah, Et Al; Case No. SCUK-CVPT-2018-70200
5.e. Conference with Legal Counsel – Existing Litigation
(Government Code Section 54956.9(d)(1))
Name of case: Vichy Springs Resort, Inc v. City of Ukiah, et al.; Case No. 24-cv-07106-JSC
5.f. Conference with Real Property Negotiators
(Cal. Gov't Code Section 54956.8)
Property: APN Nos: 001-020-78-00, 001-030-01, 001-090-01
Negotiator: Maya Simerson, Senior Management Analyst, City Manager’s Office
Negotiating Parties: Tayman Park Golf Group
Under Negotiation: Price & Terms of Agreement
5.g. Conference with Labor Negotiator (54957.6)
Agency Designated Representative: Sage Sangiacomo, City Manager
Employee Organizations: All bargaining units
Unrepresented Employee: Police Chief
5.h. Public Employment (City Attorney)
(Cal. Gov. Code § 54957(b)(1))
6. ADJOURNMENT
Please be advised that the City needs to be notified 72 hours in advance of a meeting if any specific accommodations or interpreter services
are needed in order for you to attend. The City complies with ADA requirements and will attempt to reasonably accommodate individuals with
disabilities upon request. Materials related to an item on this Agenda submitted to the City Council after distribution of the agenda packet are
available for public inspection at the front counter at the Ukiah Civic Center, 300 Seminary Avenue, Ukiah, CA 95482, during normal business
hours, Monday through Friday, 8:00 am to 5:00 pm. Any handouts or presentation materials from the public must be submitted to the clerk 12
hours in advance of the meeting; for handouts, please include 10 copies.
I hereby certify under penalty of perjury under the laws of the State of California that the foregoing agenda was posted on the bulletin board at
the main entrance of the City of Ukiah City Hall, located at 300 Seminary Avenue, Ukiah, California, not less than 24 hours prior to the meeting
set forth on this agenda.
Araceli Sandoval, Deputy City Clerk
Dated: 03/23/26
Page 2 of 24
Page 1 of 4
Agenda Item No: 3.a.
MEETING DATE/TIME: 3/25/2026
ITEM NO: 2026-538
AGENDA SUMMARY
REPORT
SUBJECT: Re-Adoption of a Resolution Approving a Zero Tax Share Agreement Between the City of Ukiah
and the County of Mendocino for the Ukiah Corporation Yard Annexation (1 Carousel Lane), Local Agency
Formation Commission (LAFCo) File No. A-2025-06.
DEPARTMENT: Community
Development PREPARED BY: Jesse Davis, Chief Planning Manager
PRESENTER:
Jesse Davis, AICP/Chief Planning Manager;
Craig Schlatter, AICP/Community Development
Director
ATTACHMENTS:
1. 1 Carousel Lane - Tax Share Agreement - LAFCo A-2025-06)
2. Draft Resolution
Summary: Council will consider re-adoption of a resolution approving a Zero Tax Sharing Agreement between
the City of Ukiah and the County of Mendocino for the Ukiah Corporation Yard Annexation (1 Carousel Lane),
Local Agency Formation Commission (LAFCo) File No. A-2025-06.
Background: On June 30, 2025, the City of Ukiah acquired the property located at 1 Carousel Lane to serve
as the City’s new Municipal Corporation Yard. The acquisition supports the City’s long-term objective to
modernize municipal infrastructure and improve service delivery across a regional service area.
The City’s existing corporation yard, located east of the Ukiah Municipal Airport, no longer meets operational
needs. The facilities are undersized and functionally constrained for Fleet and Plant Maintenance, Street
Maintenance, and Water and Wastewater Maintenance activities. As the City and surrounding region have
grown, the limitations of the current site have increasingly affected operational efficiency and service capacity.
In addition, the corporation yard relocation will free up needed space at the Ukiah Airport to support critical
aviation business and emergency operations at the facility.
Although the 1 Carousel Lane property is currently located outside the City’s incorporated boundaries, it is
centrally located within the service area of the Ukiah Valley Water Authority (UVWA). UVWA is a joint powers
authority formed to coordinate regional water system planning, infrastructure modernization, and long-term
water supply reliability among its member agencies.
On September 19, 2025, Staff submitted an application to the Mendocino County Local Agency Formation
Commission (LAFCo) for the City of Ukiah’s annexation of approximately 7.87 acres of City-owned property
located at 1 Carousel Lane, Ukiah, California (Assessor’s Parcel Number 167-280-15), commonly referred to
as the Ukiah Corporation Yard. The annexation has been assigned LAFCo File No. A-2025-06.
The property is improved with an approximately 98,000-square-foot industrial/commercial building and is used
primarily for public facilities and municipal operations. Prior to submittal of the annexation application, the site
was prezoned by the City as Public Facilities (PF).
Because the property is currently located outside the City’s incorporated limits, it remains subject to property
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taxation. Upon annexation, City-owned property used exclusively for public and municipal purposes will fall
within the City’s jurisdiction and will not generate ad valorem property tax revenue, except to the extent that
any taxable private possessory interests may exist and continue to lease a portion of the subject property.
As a point of reference, counties and cities in California are generally exempt from paying property taxes on
land they own, lease, and use for public purposes. In most cases, California’s property tax system is intended
to tax private wealth tied to land ownership, not public assets held or used for the benefit of the general public.
This framework recognizes that many public facilities must be located remotely or outside incorporated areas
to function effectively. Facilities such as water storage, landfills, wastewater treatment plants, power
generation equipment, and similar infrastructure may reasonably be owned and operated by a municipality
beyond its city limits.
Conversely, counties often provide social services and other governmental functions within incorporated cities.
In those cases, counties typically benefit from streamlined permit review and land use authority within city
boundaries. Counties do not pay property taxes on incorporated lands used for public purposes, which can be
detrimental to cities by limiting their share of allocated property tax revenue on key parcels, especially in
downtown areas.
On February 4, 2026, the City Council reviewed and voted to approve the included resolution. On February 5,
2026, following the meeting, a question was raised regarding whether there was a potential conflict of interest
requiring disclosure prior to the vote. In response, Community Development staff, in consultation with the City
Manager's Office and the City Attorney, determined that the resolution should be brought back for re-adoption,
with any required disclosures of economic interest made on the record before the vote, as will be discussed
below under the heading "Government Code § 1099 Conflicts of Interest".
On February 26, City and County staff met in-person to review the Agreement and discuss the property's
unique jurisdictional status, public use, possessory interests, and its detached location in the Designated Area.
Following that meeting and further consultation with County staff, City staff determined that the City should
proceed with re-adoption of the Resolution, which will also allow the County of Mendocino to review and
consider the Agreement at a future Board of Supervisors meeting.
The item was originally scheduled for re-consideration on the March 18, 2026, City Council agenda, but was
continued due to the unforeseen absence of two council members and the requirement of a two-thirds vote if
Council is to approve the item.
Upon approval by both the County of Mendocino, and the City of Ukiah, the adopted resolutions will be
forwarded to Mendocino LAFCo for review as part of LAFCo File No. A-2025-06.
Discussion: Government Code § 1099 Conflicts of Interest
For the reasons set forth in the paragraphs below, no Councilmember has a conflict of interest under
Government Code § 1090 that would prevent the Council from adopting the Resolution authorizing the Tax
Sharing Agreement.
Because the County is a party to the proposed Tax Sharing Agreement, and Councilmember Criss is
employed by the County, the Council must consider the application of Government Code § 1090. Section 1090
generally prohibits public officers acting in their official capacities from making contracts in which they are
financially interested. Furthermore, when an officer with a disallowed financial interest is a member of a
legislative body, the Section 1090 prohibition on contracting also extends to the entire body even if the
member recuses themselves from a decision regarding the contract.
There is an exception to Section 1090 in which a public official has a “noninterest” in a contract if her financial
interest in that contract is that of a person receiving salary, per diem, or reimbursement for expenses from a
government entity, unless the contract directly involves the department of the government entity that employs
the officer or employee, provided that the interest is disclosed to the body or board at the time of consideration
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of the contract and noted in its official record. (Govt. Code § 1091.5(a)(9).) The California Supreme Court
determined that this exception applies when “the contract involves no direct financial gain, does not directly
affect the official’s employing department, and is only with the general government entity for which the official
works.” (Lexin v. Superior Court (2010) 47 Cal.4th 1050, 1081.)
Councilmember Criss has a noninterest under Section 1091.5(a)(9), because the Tax Sharing Agreement
involves no direct financial gain to her and does not directly affect her department at the County (the
Department of Social Services) as the Agreement is with the County generally. Therefore, Section 1090 would
not prohibit Councilmember Criss from participating in making, or the City Council from entering into, the Tax
Sharing Agreement because the noninterest exception in Section 1091.5(a)(9) applies, so long as
Councilmember Criss discloses her interest in the County to the City Council at the time the Agreement is
considered at this Meeting, and her interest is noted in the City Council's official record, i.e. the adopted
meeting minutes.
Proposed Tax Sharing Agreement
Under Revenue and Taxation Code § 99, the City and the County are required to enter into a property tax
revenue exchange agreement as a component of the annexation application process, even if the associated
land is understood to be exempt. The Revenue and Taxation Code further requires that the agreement be
approved by the legislative bodies of both agencies and submitted to the Mendocino County Local Agency
Formation Commission (LAFCo) prior to commission consideration of the annexation.
Although the City and the County are parties to a previously adopted Mendocino County Master Tax Sharing
Agreement, the City has determined that this annexation is more appropriately addressed through a separate,
annexation-specific tax sharing agreement. The Ukiah Corporation Yard annexation involves unique
characteristics, including City ownership, exclusive public use, and the absence of revenue-generating private
development, which make application of the Master Tax Sharing Agreement unnecessary and administratively
impractical in this instance.
The proposed Tax Sharing Agreement (Attachment 1) is limited in scope and applies only to the Annexation
Area associated with LAFCo File No. A-2025-06. The agreement expressly acknowledges the continued
validity of the Mendocino County Master Tax Sharing Agreement and does not amend, supersede, or
otherwise affect that agreement or its application to any other annexation or change of organization.
Key provisions of the proposed Agreement include:
• A zero (0) exchange of ad valorem property tax revenue between the City and the County.
• No change to existing tax rate area allocations or base year property tax shares.
• Confirmation that the agreement does not affect the allocation of property tax revenues for any other
taxing agency.
• Acknowledgment that any taxable possessory interests within the Annexation Area remain subject to
assessment, levy, and distribution in accordance with existing law.
• Consideration of next steps if the public use ceases, consistent with California Government Code
requirements.
Because the property is City-owned and used exclusively for municipal purposes, it does not generate
Bradley-Burns local sales tax revenue under its current use. Accordingly, no sales tax exchange is required or
created by the proposed agreement.
For municipalities across Mendocino County, completing the annexation of key municipal infrastructure sites is
essential to reducing the cost of providing public services. This is especially true for facilities that support
regional water delivery, such as water storage sites in Fort Bragg or the City of Ukiah’s municipal corporation
yard serving the districts of the Ukiah Valley Water Authority. Equally important is streamlining the process for
adopting individual tax-share resolutions outside the previously approved master agreement. The long-
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standing principle that publicly operated facilities are not subject to property taxes should be recognized
promptly by the County to avoid unnecessary administrative delays and minimize costs applied to ratepayers.
Staff recommends that the City Council adopt a Resolution (Attachment 2) approving the Zero Tax Sharing
Agreement between the City of Ukiah and the County of Mendocino for LAFCo File No. A-2025-06. Staff
further recommends that the City Council authorize the Mayor and the City Manager to execute the Agreement
on behalf of the City, and authorize Staff to transmit the Resolution(s) and the executed Agreement to
Mendocino LAFCo upon approval by both the County of Mendocino and the City of Ukiah.
Recommended Action: Re-Adopt a resolution approving a Zero Tax Sharing Agreement between the City of
Ukiah and the County of Mendocino for the Ukiah Corporation Yard Annexation (1 Carousel Lane), LAFCo File
No. A-2025-06.
BUDGET AMENDMENT REQUIRED: N/A
CURRENT BUDGET AMOUNT: $66,119.77
PROPOSED BUDGET AMOUNT: $0
FINANCING SOURCE: Water Resources
REVENUE: No GRANT: No
PREVIOUS CONTRACT/PURCHASE ORDER NO.: N/A
COORDINATED WITH: City Manager's Office; City Attorney
STRATEGIC PLAN (SP): N/A
GENERAL PLAN ELEMENTS (GP): LU 7.2 (Annexation); ED 1.1 (Interagency Coordination)
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COU. No.
1
MENDOCINO COUNTY
UKIAH CORPORATION YARD - TAX SHARING AGREEMENT
(1 Carousel Lane Annexation – APN 167-280-15; LAFCo File No. A-2025-06)
THIS TAX SHARING AGREEMENT (this “Agreement”) is entered into by and between the County
of Mendocino, a subdivision of the State of California (the “County”), and the City of Ukiah, a California
municipal corporation (the “City”). The County and the City are sometimes referred to herein individually
as a “Party” and collectively as the “Parties.” This Agreement is effective as of the date it is executed on
behalf of the last Party to do so (the “Effective Date”).
RECITALS
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 must be approved by the Mendocino County Local
Agency Formation Commission LAFCo (“Mendocino LAFCo” or “LAFCo”), and other local agencies;
and
WHEREAS, the City has submitted an application to the Mendocino LAFCo to annex territory located at
1 Carousel Lane, Ukiah, California, Assessor’s Parcel Number 167-280-15, consisting of approximately
7.87 acres and improved with an approximately 98,000-square-foot industrial/commercial building (the
“Annexation Area”); and
WHEREAS, for certain changes of organization, including annexations, Revenue and Taxation Code § 99
requires the City and the County to enter into an agreement providing for a property tax revenue exchange
and to submit resolutions approving the agreement to LAFCo prior to consideration of the change of
organization; and
WHEREAS, the Annexation Area is City-owned and used primarily for municipal/corporation yard
functions, and any private possessory interest within the Annexation Area remains taxable and subject to
assessment and allocation as provided by law; and
WHEREAS, on October 8, 2025, the City of Ukiah Planning Commission approved prezoning the
Annexation Area as Public Facilities (PF) (PC Resolution No. 2025-04); and
WHEREAS, on November 5, 2025, the Ukiah City Council introduced the annexation proposal, authorized
submission of the annexation application to LAFCo, and adopted a Resolution of Application for the
Corporation Yard Annexation; and
WHEREAS, on November 19, 2025, the Ukiah City Council adopted Ordinance No. 1263 which prezones
the Annexation Area as Public Facilities (PF); and
WHEREAS, on November 20, 2025, LAFCo received the annexation proposal and assigned it LAFCo File
No. A-2025-06; and
WHEREAS, the Parties desire to approve a stand-alone, annexation-specific tax sharing agreement
providing for a zero (0) property tax exchange for the Annexation Area in order to satisfy the requirements
of Revenue and Taxation Code § 99; and
WHEREAS, the Parties acknowledge that the County and the City have previously adopted a Mendocino
County Master Tax Sharing Agreement but expressly agree that the Master Tax Sharing Agreement does
not apply to this annexation.
AGREEMENT - LAFCO FILE NO. A-2025-06.
ATTACHMENT 1
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COU. No.
2
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 meanings set forth below:
“Annexation” shall have the meaning set out in Government Code § 56017, or its successor, and
shall include any reorganization that includes an annexation.
“Annexation Area” shall mean the single parcel located at 1 Carousel Lane, Ukiah, California,
Assessor’s Parcel Number 167-280-15, as more particularly described in Exhibit A.
“Annexation Effective Date” shall mean the effective date of the annexation, as specified in
LAFCo’s terms and conditions or by Government Code § 57202; provided, however, that such date occurs
after the Effective Date of this Agreement.
“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.
“Distribution” shall mean the allocation and provision of property tax revenue between the Parties
as provided for in this Agreement in order to satisfy the requirements of Revenue and Taxation Code § 99.
“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.
“RTC 99 Exchange” means the negotiated exchange (if any) of ad valorem property tax
revenues between the County and the City required by Revenue and Taxation Code § 99 in connection
with the Annexation, as approved by the Parties and submitted to LAFCo.
“Sales Tax Revenue” shall only mean those taxes collected in accordance with the Bradley-
Burns Uniform Local Sales and Use Tax Law (“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.
3.Tax Distribution LAFCO FILE NO. A-2025-06
3.1. Limited Scope. This Agreement applies only to the City and County shares of Property Tax
Revenue within the Annexation Area for LAFCo File No. A-2025-06. This Agreement does not
affect the allocation of property tax revenue for any other taxing entity.
3.2. No Master Agreement Application. This Agreement is separate and annexation specific. It does
not amend, supersede, waive, or otherwise alter any rights or obligations under the Mendocino
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COU. No.
3
County Master Tax Sharing Agreement for any other annexation or change of organization.
4. Tax Revenue Collection and Distribution.
4.1 Zero Exchange. Effective as of the Annexation Effective Date, the Parties agree that the
exchange of ad valorem Property Tax Revenue between the City and the County pursuant to
Revenue and Taxation Code § 99 for the Annexation Area shall be zero (0).
4.2 No Change to Existing Allocation Shares. The Parties intend that this Agreement does not
change the City’s or County’s existing shares of Property Tax Revenue within the Annexation Area
as determined under applicable law and the applicable tax rate area(s).
4.3 Implementation Direction. The Parties will implement this Agreement by ensuring that no
additional or adjusted apportionment factors are applied between the County and the City for the
Annexation Area solely as a result of LAFCo File No. A-2025-06.
5. Sales Tax and Housing Allocation
5.1 No Sales Tax Exchange. The Parties acknowledge that the Annexation Area is City-owned and
used for public facilities/municipal purposes and does not generate Bradley-Burns local sales tax
revenue under its current use. Accordingly, no sales tax exchange is required or created by this
Agreement.
5.2 No RHNA/RHNP Adjustment Required. The Parties acknowledge the Annexation Area
contains no residential uses under its current use and is not being annexed for residential
development. Accordingly, no RHNA/RHNP adjustment is required as part of this Agreement.
6.Possessory Interests; Private Use
6.1 Taxability Preserved. Any private occupancy or private use within the Annexation Area
(including leased or licensed space) remains subject to possessory interest assessment and taxation
under applicable law.
6.2 No Special Exchange of Possessory Interest Revenues. Revenues derived from possessory
interest assessments shall be levied, collected, and distributed in the ordinary course pursuant to
law. This Agreement creates no additional exchange of such revenues.
6.3 No Amendment Needed for Routine Changes. The expansion, reduction, assignment, or
termination of private occupancy shall adjust assessments and revenues pursuant to law and does
not, by itself, require amendment of this Agreement.
7.Contingency; Change in Use
7.1 Contingency. This Agreement is contingent upon the Annexation becoming effective. If the
Annexation does not become effective, this Agreement is void and of no further force.
7.2 Change in Use Trigger. If the City ceases to use the Annexation Area primarily for public
facilities/municipal purposes, the Parties will meet and confer in good faith to determine whether a
new agreement under Revenue and Taxation Code § 99 is required for any subsequent change of
organization or continued City jurisdiction involving revenue-generating private use.
8. Implementation; Transmittals
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COU. No.
4
8.1 Administrative Coordination. The City Manager (or designee) and the County Chief Executive
Officer (or designee) are authorized to coordinate with the County Auditor-Controller, Assessor,
and LAFCo to implement this Agreement.
8.2 Delivery to LAFCo. The Parties will provide their respective approving resolutions for this
Agreement to LAFCo as required for LAFCo File No. A-2025-06.
9. Notices
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:
City of Ukiah
Attn: Mayor and City Manager
300 Seminary Avenue
Ukiah, CA 95482
Email: cmoffice@cityofukiah.com
To LAFCO:
Mendocino LAFCo
ATTN: Executive Officer
200 S School St # 2, Ukiah, CA 95482
Email: eo@mendocinolafco.org
10. No Third-Party Beneficiaries
This Agreement is for the benefit of the Parties only and does not create any rights in any third party.
11. Severability
If any provision of this Agreement is held invalid or unenforceable, the remaining provisions will remain
in effect unless doing so would defeat the basic purpose of this Agreement.
12. Authority
Each Party represents that its legislative body has authorized execution of this Agreement and that the
undersigned have authority to bind the Party on whose behalf they sign.
IN WITNESS WHEREOF, the Parties have executed this Agreement as of the Effective Date.
COUNTY OF MENDOCINO
Date: ______________________
Approved as to Form:
County Counsel
By: ________________________
Chair of the Board of Supervisors
Attest:
___________________
County Clerk
CITY OF UKIAH
Date: ______________________
Page 10 of 24
COU. No.
5
Approved as to Form:
By: ________________________
Mayor
City Attorney
Attest:
___________________
City Clerk
Exhibit A: Draft Annexation Area Plat & Legal Description
Page 11 of 24
EXHIB I T "A"
Legal Description
The Ci ty of Uk i ah Annexati o n o f City Owned Property
(LAFCo File No. _____ )
Al l that real prope rty situated in the unincorpora ted area of Mendocino Coun t y, State
of California , descri bed as follows :
AREA A:
Be ing a portion of Lot 140 of
lands of the City of Ukiah
Instrument Number 2025-05366 ,
as follows :
Healey 's Survey and Map of Yokayo Rancho and being the
d e scribed in that certain Gran t Deed recorded in
Mendocino County Records, more pa rticul arly described
COMMENCING at the National Geodetic Survey station , being a 3-1/ 4 " Aluminum Di sk
marked CA DOT / 101 MEN 25 .13 ; thence North 04°59 '34 " West, 14917 .74 feet to the
southwest corne r of the said City of Ukiah property and the POINT OF BEGI NNING ;
thence along the boundary of said City of Ukiah property the follo win g twelve (12)
courses :
1. North 04°05 '30 " East , 425.00 feet ;
2. South 79°09 '00 " East, 179.56 feet ;
3. North 44°19 '00 " East , 120.04 feet;
4. South 55°34 '00 " East , 182.98 feet;
5. South 68°36 '20 " East , 167 .4 2 feet;
6. No rth 8 4°4 4 '4 0 " East, 144 .51 feet;
7 . South 53°15 '30 " East, 105 .00 feet;
8. South 21°48 '43 " West , 489.43 feet;
9 . From a tangent that bears South 66°29 '06 " West , along a curve to the right wi th
a radius of 50.00 feet, a central angle of 50°12 '30 " and an arc length of 43.81
feet ;
10. North 63°18 '24 " West, 239.08 feet ;
11 . A~ong a curve to the left with a radius of 730 .00 feet , a central angl e of
22°36 '0 6 " and an arc length of 287 .94 feet;
12 . North 85°54 '30 " West, 112.00 feet to the POI NT OF BEGINNING .
Area= 7 .90 acres
AP 167 -280-15
The basis of b earings for this description is based on NAD83, California Coordinate
System (CCS83), Zone 2 (2010 . 00 epoch date) using the two found National Geodetic
Su r vey monuments designated "101 MEN 25 .13 " and "HPGN D CA 01 CG" said bearing South
05°01 '58 " East, shown on Ex h ibit "A ", attached hereto and made a part hereof . .,
The purpose of this description is for annexation purposes and to compy with the
State Board of Equalization 's "Written Lega l (geodetic) Description Requirements ".
This description is to be used to establish geodetic position only and is n ot
intended to establish property ownership .
Ron W. Franz L .S . 7173 Dated
Page 12 of 24
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RESOLUTION NO. 2026-
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF UKIAH APPROVING A ZERO TAX
SHARING AGREEMENT WITH THE COUNTY OF MENDOCINO IN SUPPORT OF THE UKIAH
CORPORATION YARD ANNEXATION (1 CAROUSEL LANE), LAFCO FILE NO. A-2025-06
WHEREAS:
1.The City Council of the City of Ukiah (“City”) desires to annex certain real property located at 1
Carousel Lane, Ukiah, California, identified as Assessor’s Parcel Number 167-280-15 (the
“Annexation Area”); and
2.The proposed annexation has been submitted to the Mendocino County Local Agency
Formation Commission (“LAFCo”) and has been assigned LAFCo File No. A-2025-06; and
3.California Revenue and Taxation Code § 99 requires the City and the County of Mendocino
(“County”) to enter into an agreement providing for an exchange of property tax revenues in
connection with the annexation; and
4.The City proposes a Tax Sharing Agreement providing for a zero percent (0%) exchange of
property tax revenues for the Annexation Area, consistent with applicable law; and
5.The proposed Tax Sharing Agreement applies solely to the City and County shares of property tax
revenue generated within the Annexation Area and does not affect the allocation of property tax
revenues for any other taxing entity; and
6.The proposed Tax Sharing Agreement is annexation-specific and is not intended to amend,
supersede, waive, or otherwise alter any rights or obligations of the City or the County under the
Mendocino County Master Tax Sharing Agreement or any other agreement applicable to separate
annexations or changes of organization; and
7.The City Council has reviewed the Tax Sharing Agreement entitled “Mendocino County – Ukiah
Corporation Yard Tax Sharing Agreement (1 Carousel Lane Annexation – APN 167-280-15;
LAFCo File No. A-2025-06)”, attached hereto as Exhibit A.
NOW, THEREFORE, BE IT RESOLVED that:
1.Approval. The City Council hereby approves the Tax Sharing Agreement between the City of
Ukiah and the County of Mendocino for LAFCo File No. A-2025-06, in substantially the form
presented to the City Council and attached as Exhibit A.
2.Execution Authority. The Mayor and the City Manager, or either of them, are hereby authorized
and directed to execute the Tax Sharing Agreement on behalf of the City, subject to approval as
to form by the City Attorney.
3.Implementation. City staff are authorized and directed to transmit this Resolution and the
executed Tax Sharing Agreement to LAFCo and to take all actions necessary to carry out and
implement the Agreement.
Page 1 of 10
Attachment 2
Page 15 of 24
PASSED AND ADOPTED this 25th day of March, 2026, by the following roll call vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
Susan Sher, Mayor
ATTEST:
Kristine Lawler, City Clerk
Exhibit A: Mendocino County- Ukiah Corporation Yard - Tax Sharing Agreement
Page 2 of 10
Page 16 of 24
COU. No.
MENDOCINO COUNTY
UKIAH CORPORATION YARD - TAX SHARING AGREEMENT
(1 Carousel Lane Annexation – APN 167-280-15; LAFCo File No. A-2025-06)
THIS TAX SHARING AGREEMENT (this “Agreement”) is entered into by and between the County
of Mendocino, a subdivision of the State of California (the “County”), and the City of Ukiah, a California
municipal corporation (the “City”). The County and the City are sometimes referred to herein individually
as a “Party” and collectively as the “Parties.” This Agreement is effective as of the date it is executed on
behalf of the last Party to do so (the “Effective Date”).
RECITALS
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 must be approved by the Mendocino County Local
Agency Formation Commission LAFCo (“Mendocino LAFCo” or “LAFCo”), and other local agencies;
and
WHEREAS, the City has submitted an application to the Mendocino LAFCo to annex territory located at
1 Carousel Lane, Ukiah, California, Assessor’s Parcel Number 167-280-15, consisting of approximately
7.87 acres and improved with an approximately 98,000-square-foot industrial/commercial building (the
“Annexation Area”); and
WHEREAS, for certain changes of organization, including annexations, Revenue and Taxation Code § 99
requires the City and the County to enter into an agreement providing for a property tax revenue exchange
and to submit resolutions approving the agreement to LAFCo prior to consideration of the change of
organization; and
WHEREAS, the Annexation Area is City-owned and used primarily for municipal/corporation yard
functions, and any private possessory interest within the Annexation Area remains taxable and subject to
assessment and allocation as provided by law; and
WHEREAS, on October 8, 2025, the City of Ukiah Planning Commission approved prezoning the
Annexation Area as Public Facilities (PF) (PC Resolution No. 2025-04); and
WHEREAS, on November 5, 2025, the Ukiah City Council introduced the annexation proposal, authorized
submission of the annexation application to LAFCo, and adopted a Resolution of Application for the
Corporation Yard Annexation; and
WHEREAS, on November 19, 2025, the Ukiah City Council adopted Ordinance No. 1263 which prezones
the Annexation Area as Public Facilities (PF); and
WHEREAS, on November 20, 2025, LAFCo received the annexation proposal and assigned it LAFCo File
No. A-2025-06; and
WHEREAS, the Parties desire to approve a stand-alone, annexation-specific tax sharing agreement
providing for a zero (0) property tax exchange for the Annexation Area in order to satisfy the requirements
of Revenue and Taxation Code § 99; and
WHEREAS, the Parties acknowledge that the County and the City have previously adopted a Mendocino
County Master Tax Sharing Agreement but expressly agree that the Master Tax Sharing Agreement does
not apply to this annexation.
AGREEMENT - LAFCO FILE NO. A-2025-06.
EXHIBIT A
Page 3 of 10
Page 17 of 24
COU. No.
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 meanings set forth below:
“Annexation” shall have the meaning set out in Government Code § 56017, or its successor, and
shall include any reorganization that includes an annexation.
“Annexation Area” shall mean the single parcel located at 1 Carousel Lane, Ukiah, California,
Assessor’s Parcel Number 167-280-15, as more particularly described in Exhibit A.
“Annexation Effective Date” shall mean the effective date of the annexation, as specified in
LAFCo’s terms and conditions or by Government Code § 57202; provided, however, that such date occurs
after the Effective Date of this Agreement.
“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.
“Distribution” shall mean the allocation and provision of property tax revenue between the Parties
as provided for in this Agreement in order to satisfy the requirements of Revenue and Taxation Code § 99.
“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.
“RTC 99 Exchange” means the negotiated exchange (if any) of ad valorem property tax
revenues between the County and the City required by Revenue and Taxation Code § 99 in connection
with the Annexation, as approved by the Parties and submitted to LAFCo.
“Sales Tax Revenue” shall only mean those taxes collected in accordance with the Bradley-
Burns Uniform Local Sales and Use Tax Law (“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.
3.Tax Distribution LAFCO FILE NO. A-2025-06
3.1. Limited Scope. This Agreement applies only to the City and County shares of Property Tax
Revenue within the Annexation Area for LAFCo File No. A-2025-06. This Agreement does not
affect the allocation of property tax revenue for any other taxing entity.
3.2. No Master Agreement Application. This Agreement is separate and annexation specific. It does
not amend, supersede, waive, or otherwise alter any rights or obligations under the Mendocino
Page 4 of 10
Page 18 of 24
COU. No.
County Master Tax Sharing Agreement for any other annexation or change of organization.
4. Tax Revenue Collection and Distribution.
4.1 Zero Exchange. Effective as of the Annexation Effective Date, the Parties agree that the
exchange of ad valorem Property Tax Revenue between the City and the County pursuant to
Revenue and Taxation Code § 99 for the Annexation Area shall be zero (0).
4.2 No Change to Existing Allocation Shares. The Parties intend that this Agreement does not
change the City’s or County’s existing shares of Property Tax Revenue within the Annexation Area
as determined under applicable law and the applicable tax rate area(s).
4.3 Implementation Direction. The Parties will implement this Agreement by ensuring that no
additional or adjusted apportionment factors are applied between the County and the City for the
Annexation Area solely as a result of LAFCo File No. A-2025-06.
5. Sales Tax and Housing Allocation
5.1 No Sales Tax Exchange. The Parties acknowledge that the Annexation Area is City-owned and
used for public facilities/municipal purposes and does not generate Bradley-Burns local sales tax
revenue under its current use. Accordingly, no sales tax exchange is required or created by this
Agreement.
5.2 No RHNA/RHNP Adjustment Required. The Parties acknowledge the Annexation Area
contains no residential uses under its current use and is not being annexed for residential
development. Accordingly, no RHNA/RHNP adjustment is required as part of this Agreement.
6. Possessory Interests; Private Use
6.1 Taxability Preserved. Any private occupancy or private use within the Annexation Area
(including leased or licensed space) remains subject to possessory interest assessment and taxation
under applicable law.
6.2 No Special Exchange of Possessory Interest Revenues. Revenues derived from possessory
interest assessments shall be levied, collected, and distributed in the ordinary course pursuant to
law. This Agreement creates no additional exchange of such revenues.
6.3 No Amendment Needed for Routine Changes. The expansion, reduction, assignment, or
termination of private occupancy shall adjust assessments and revenues pursuant to law and does
not, by itself, require amendment of this Agreement.
7. Contingency; Change in Use
7.1 Contingency. This Agreement is contingent upon the Annexation becoming effective. If the
Annexation does not become effective, this Agreement is void and of no further force.
7.2 Change in Use Trigger. If the City ceases to use the Annexation Area primarily for public
facilities/municipal purposes, the Parties will meet and confer in good faith to determine whether a
new agreement under Revenue and Taxation Code § 99 is required for any subsequent change of
organization or continued City jurisdiction involving revenue-generating private use.
8. Implementation; Transmittals
Page 5 of 10
Page 19 of 24
COU. No.
8.1 Administrative Coordination. The City Manager (or designee) and the County Chief Executive
Officer (or designee) are authorized to coordinate with the County Auditor-Controller, Assessor,
and LAFCo to implement this Agreement.
8.2 Delivery to LAFCo. The Parties will provide their respective approving resolutions for this
Agreement to LAFCo as required for LAFCo File No. A-2025-06.
9. Notices
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:
City of Ukiah
Attn: Mayor and City Manager
300 Seminary Avenue
Ukiah, CA 95482
Email: cmoffice@cityofukiah.com
To LAFCO:
Mendocino LAFCo
ATTN: Executive Officer
200 S School St # 2, Ukiah, CA 95482
Email: eo@mendocinolafco.org
10. No Third-Party Beneficiaries
This Agreement is for the benefit of the Parties only and does not create any rights in any third party.
11. Severability
If any provision of this Agreement is held invalid or unenforceable, the remaining provisions will remain
in effect unless doing so would defeat the basic purpose of this Agreement.
12. Authority
Each Party represents that its legislative body has authorized execution of this Agreement and that the
undersigned have authority to bind the Party on whose behalf they sign.
IN WITNESS WHEREOF, the Parties have executed this Agreement as of the Effective Date.
COUNTY OF MENDOCINO
Date: ______________________
Approved as to Form:
County Counsel
By: ________________________
Chair of the Board of Supervisors
Attest:
___________________
County Clerk
CITY OF UKIAH
Date: ______________________
Page 6 of 10
Page 20 of 24
COU. No.
Approved as to Form:
By: ________________________
Mayor
City Attorney
Attest:
___________________
City Clerk
Exhibit A: Draft Annexation Area Plat
Page 7 of 10
Page 21 of 24
EXHIB I T "A"
Legal Description
The Ci ty of Uk i ah Annexati o n o f City Owned Property
(LAFCo File No. _____ )
Al l that real prope rty situated in the unincorpora ted area of Mendocino Coun t y, State
of California , descri bed as follows :
AREA A:
Be ing a portion of Lot 140 of
lands of the City of Ukiah
Instrument Number 2025-05366 ,
as follows :
Healey 's Survey and Map of Yokayo Rancho and being the
d e scribed in that certain Gran t Deed recorded in
Mendocino County Records, more pa rticul arly described
COMMENCING at the National Geodetic Survey station , being a 3-1/ 4 " Aluminum Di sk
marked CA DOT / 101 MEN 25 .13 ; thence North 04°59 '34 " West, 14917 .74 feet to the
southwest corne r of the said City of Ukiah property and the POINT OF BEGI NNING ;
thence along the boundary of said City of Ukiah property the follo win g twelve (12)
courses :
1. North 04°05 '30 " East , 425.00 feet ;
2. South 79°09 '00 " East, 179.56 feet ;
3. North 44°19 '00 " East , 120.04 feet;
4. South 55°34 '00 " East , 182.98 feet;
5. South 68°36 '20 " East , 167 .4 2 feet;
6. No rth 8 4°4 4 '4 0 " East, 144 .51 feet;
7 . South 53°15 '30 " East, 105 .00 feet;
8. South 21°48 '43 " West , 489.43 feet;
9 . From a tangent that bears South 66°29 '06 " West , along a curve to the right wi th
a radius of 50.00 feet, a central angle of 50°12 '30 " and an arc length of 43.81
feet ;
10. North 63°18 '24 " West, 239.08 feet ;
11 . A~ong a curve to the left with a radius of 730 .00 feet , a central angl e of
22°36 '0 6 " and an arc length of 287 .94 feet;
12 . North 85°54 '30 " West, 112.00 feet to the POI NT OF BEGINNING .
Area= 7 .90 acres
AP 167 -280-15
The basis of b earings for this description is based on NAD83, California Coordinate
System (CCS83), Zone 2 (2010 . 00 epoch date) using the two found National Geodetic
Su r vey monuments designated "101 MEN 25 .13 " and "HPGN D CA 01 CG" said bearing South
05°01 '58 " East, shown on Ex h ibit "A ", attached hereto and made a part hereof . .,
The purpose of this description is for annexation purposes and to compy with the
State Board of Equalization 's "Written Lega l (geodetic) Description Requirements ".
This description is to be used to establish geodetic position only and is n ot
intended to establish property ownership .
Ron W. Franz L .S . 7173 Dated
Page 8 of 10
Page 22 of 24
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