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HomeMy WebLinkAboutCounty of Mendocino 2026-04-07RESOLUTION NO. 26-065 RESOLUTION OF THE MENDOCINO COUNTY BOARD OF SUPERVISORS APPROVING A ZERO TAX SHARING AGREEMENT WITH THE CITY OF UKIAH IN SUPPORT OF THE UKIAH CORPORATION YARD ANNEXATION (1 CAROUSEL LANE), LAFCO FILE NO. A-2025-06 WHEREAS, 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 WHEREAS, 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 WHEREAS, California Revenue and Taxation Code section 99 requires the County of Mendocino ("County") and City to enter into an agreement providing for an exchange of property tax revenues in connection with the annexation; and WHEREAS, the City proposed a tax sharing agreement providing for a zero percent (0%) exchange of property tax revenues for the Annexation Area, consistent with applicable law; and WHEREAS, the proposed tax sharing agreement applies solely to the County and City 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 WHEREAS, 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 WHEREAS, the Mendocino County Board of Supervisors 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.The Mendocino County Board of Supervisors hereby approves the tax sharing agreement between the County of Mendocino and the City of Ukiah, 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; and 2.The Chair of the Board of Supervisors is hereby authorized to execute the attached tax sharing agreement on behalf of the County of Mendocino. The foregoing Resolution introduced by Supervisor Haschak, seconded by Supervisor Williams, and carried this 7th day of April, 2026, by the following vote: AYES: Supervisors Cline, Mulheren, Haschak, Norvell, and Williams NOES: None ABSENT: None WHEREUPON, the Chair declared said Resolution adopted and SO ORDERED. ATTEST: DARCIE ANTLE Clerk of the Board ______________________________ Deputy APPROVED AS TO FORM: KATHARINE L. ELLIOTT Interim County Counsel ______________________________ _________________________________ BERNIE NORVELL, Chair Mendocino County Board of Supervisors I hereby certify that according to the provisions of Government Code Section 25103, delivery of this document has been made. BY: DARCIE ANTLE Clerk of the Board _________________________________ Deputy COU No. 2526-167 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 of2000 (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. 1 Exhibit A BOS Agreement 26-035 AGREEMENT -LAFCO FILE NO. A-2025-06. NOW, THEREFORE, the Parties agree as follows: 1. Incorporation of Recitals COU No. 2526-167 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- Bums Uniform Local Sales and Use Tax Law ("Bradley-Bums"). "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. 2 COU No. 2526-167 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 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 ofLAFCo 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-Bums 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. 3 .... ....., LTO Annexation Area A Point of Beginning ,,-------+---- AP 167-280-11 Double M Properties ., 0 AP 167-280-05 Thompson Segment # Direction L1 N04.05'JO"E L2 579•09•00•£ L3 N44i9'oo·E L4 555·34•00•£ LS S68"36'20"£ L6 N84·44•4o•E Ll 553;5•.30•£ LB S21 •48'43•w L9 N63iB'24•w uo NB5·54•3o•w Length Delta Length 425.00' 179.56' 120.04' 182.98' 167.42' 144.51' 105.00' 489.43' 239.08' 112.00· L6 Curve# Ct C2 43.81' 50;2'30• 287. 94' 22"36'06" Radius 50.00' 730.00' AP 167-280-12 Double M Properties 100 200 ( 167-280-~~ 3.25" aluminum disk marked CA DOT/ 101 MEN Scale: 1"=100' Double M Properties \ AP 168-201-34 Panofsky AP 167-280-14 Double M Properties COU No. 2526-167 8. Implementation; Transmittals 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@m endocinocounty.gov ToLAFCO: Mendocino LAFCo ATTN: Executive Officer 200 S School St# 2, Ukiah, CA 95482 Email: eo@mendocinolafco.org 10. No Third-Party Beneficiaries To City: City of Ukiah Attn: Mayor and City Manager 300 Seminary Avenue Ukiah, CA 95482 Email: cmoffice@ cit yo fu kiah.co m 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 Attest: By: _________ _ Bernie Norvell, Chair of the Board of Supervisors , County Clerk 4 04/07/2026 Darcie Antle Deputy COU No. 2526-167 CITY OF UKIAH Date:_____,a,_,+-"f \~I) ~_____,,\_Q_ By: ~1U4~~ \ Susan Sher, Mayor Attest: Exhibit A: Draft Annexation Area Plat & Legal Description 5 EXHIBIT "A" Legal Description The City of Ukiah Annexation of City Owned Property (LAFCo F i le No. _____ ) All that real property situated in the unincorporated area of Mendocino County, State of California, described as follows: AREA A: Being a portion of Lot 140 of Healey's Survey and Map of Yokayo Rancho and being the lands of the City of Ukiah described in that certain Grant Deed recorded in Instrument Number 2025-05366, Mendocino County Records, more particularly described as follows: COMMENCING at thP. National GP.odetic Survey st.::it.ion, being a 3-]/4" Aluminum Disk marked CA DOT! 101 MEN 25.13; thence North 04°59'34" West, 14917.74 feet to the southwest corner of the said City of Ukiah property and the POINT OF BEGINNING; thence along the boundary of said City of Ukiah property the following 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, 167.42 feet; 6. North 84°44'40" 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 with 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. Along a curve to the left with a radius of 730.00 feet, a central angle of 22°36'06" and an arc length of 287.94 feet; 12. North 85°54'30" West, 112.00 feet to the POINT OF BEGINNING. Area= 7.90 acres AP 167-280-15 The basis of bearings for this description is based on NAD83, California Coordinate System (CCS83), Zone 2 (2010.00 epoch date) using the two found National Geodeti c Survey monuments designated "101 MEN 25.13" and "HPGN D CA 01 CG" said bearing South 0.5°01'58" East, shown on Exhibit "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 Legal (geodetic) Description Requirements". This description is to be used to establish geodetic position only and is not intended to establish property ownership. Ron W. Franz L.S. 7173 Dated ....... ,, I II I \i : I~ : ,i_ Annexation Area A I I I I I ,oo APl6l-2tl0-11 DoublelJP,op.,11., J I I APIU-201 -_,,. Ponor,p-y I y ,,,· .. m- l ~ ~~{ 101 IICN Scole: ,·.,oo· Point otB-.ginnini Q,n..,fCllyof/AfollS-dory ProposNn••ONIHolfo,,Ot:Nndory --r•o,0Ro,,ct10Bouf>dor:, 1. '11.-Bo,& of Bcorlnp for th& dncri:itb'I t1fld mcp ,, bo~ °" NAO 8J Cdlfo,nltJ =-~:.:~;-:ci!=~ ;!,£;0!~~~,_fj';,!,.,"';!c,:"O ~ :,-;:.N:,'°;:.,,cn dtkl ,,.,_,, oro 'l'ld ,all.In ,,,,kit or-. tile IHlsh lo, ,,,. -_,..,.., ,..,_,_ To obi°"' 'Toi,nd,olundhtido lhodirtOl'lcnby0.911/6,0195 fooblcril9'our>ddifloncu ~n:rS :.::,:~~.:;~rf~r::Ii!::te=~,,:f:::f:::::'·f:,r.ffl =~/:!a:',:'.,~lkpos,"/lononlyond~nolinf..,dftllontoblishprop,:,/y ~:~;a ;.:.?,&lkl~=~::-.:•~'1on';''~r"-"=..:y c;,;:::,';';,";0~-;:,no EXHIBIT "A" City of Ukiah Carousel Annexation LAFCo Fife No. ~~~~ Portion of Lot 140 of the Yo ko,vo Rancho Mendocino County, California September 22, 2 025 f'onnotlon Commlnlon oflh•C-lyotll.,.doclno State otCdlfoffllo. h~cbycertlfylltof saldLocol ~eot;"/::"byRHolut':,/;, ___ ,2025t1PP'O>iedwl/lllnmcp O,sa,,IICR f'oronn....,..,lp,up,NnOIWJI. Dtlsdncrlp//o,,of lond I, i,o! a legol p,Ofle,ty dnulptlon tn defkl«I :1:i!..to;. -=~•a:;~':':',;:'~ uHd