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HomeMy WebLinkAboutMalaga County Water District, County of Fresno and Fresno Local Agency Formation Commission - Memorandum of Understanding Related to Water Service North of North AvenueMEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF FRESNO, THE MALAGA COUNTY WATER DISTRICT, THE COUNTY OF FRESNO, AND THE FRESNO LOCAL AGENCY FORMATION COMMISSION RELATED TO WATER SERVICE NORTH OF NORTH AVENUE the Malaga County Water District ("District' Commission ("Fresno LAFCo"). The City, District, and Fresno LAFCo may be referredto herein as the "Padies." RECITALS WHEREAS, the jurisdictional boundaries and spheres of influence of the City andthe District are coterminous along North Avenue between Minnewawa Avenue on tf'" east and Golden State Avenue on the west; and WHEREAS, the District has water facilities in North Avenue to serve itscustomers within its service area, including south of North Avenue from peach Avenueto approximately midway between Chestnut and Maple Avenues, with planned extensions east to Minnewawa Avenue and west to Golden State Avenue; and WHEREAS, the County has jurisdiction over the implementation of its general plan outside of the incorporated boundaries of the City; and WHEREAS, the Fresno LAFCo is an independent public agency established bythe Legislature to establish and change the boundaries of cities ãnd special districtj; discourage urban sprawl; preserve open-space and prime agricultural lands; assess theefficiencies of service delivery; and perform studies to contribute to the logical and development of local agencies in Fresno County; and WHEREAS, the City water service in North Avenue is limited to the area within the current Fresno city limit, west of Maple Avenue; and WHEREAS,. the Fresno city limits north of North Avenue extend east only toMaple Avenue and the City's sphere of influence extends furlher east along tne n'ortn side of North Avenue to Temperance Avenue; and WHEREAS, several developers have made applications for industrial andcommercial projects to the County for development entitlements on unincorporated landwithin the City's sphere of influence norlh of North Avenue, and approval of theseprojects will require municipal services; and WHEREAS, under the terms of the 2003 Amended and Restated Memorandumof Understanding between the County of Fresno and the City of Fresno (hereafter l789l57vl / 152730001 "City/County MOU"), the County is obligated to refer new urban commercial and industrial development projects to the City for annexation; and WHEREAS, because these proposed developments are not contiguous to the City, it is not possible to annex these parcels to the City as provided for in the City/County Memorandum of Understanding and the projects are referred back to the County to be processed under County jurisdiction; and WHEREAS, due to the distance to connect the proposed developments to necessary municipal services provided by the City, and the requirement that the initial extension of services be sized appropriately to accommodate the capacity not just of the proposed development, but of planned industrial development in this portion of the Fresno General Plan, the expense of extending to the proposed developments is in excess of the economies of scale of individual parcel developers; and WHEREAS, at this point in time, in the absence of available capital funding on the part of either the City or District to extend municipal service infrastructure in anticipation of future development to serve properties described herein as those properties exist or are developed , would be cost prohibitive for both agencies; and WHEREAS, such municipal services provided by the District to its current and future customers are already in place in North Avenue; and WHEREAS, City and District are each agencies of the State, formed pursuant to general law or principal act, for the local performance of governmental or proprietary functions within limited boundaries, and in areas outside City or District boundaries when authorized by Fresno LAFCo pursuant to Government Code Section 56133; and WHEREAS, Government Code Section 56133(a) states that a city or district may provide new or extended services by contract or agreement outside its jurisdictional boundaries only if it first requests and receives written approval from the LAFCo in the affected county; and WHEREAS, pursuant to Government Code Sections 56133(b) and (c), the Fresno LAFCo may authorize a city or district to provide new or extended services outside its jurisdictional boundaries but within its sphere of influence in anticipation of a later change of organization, and may authorize a city or district to provide new or extended services outside its jurisdictional boundaries and outside its sphere of influence to respond to an existing or impending threat to the public health or safety of the residents of the affected territory if certain requirements are met; and WHEREAS, the Fresno LAFCo has expressed concerns to the City, District, and County regarding development pressure to connect to proximate services that may also lie outside certain jurisdictional boundaries and spheres of influence; and l789l57vl I 152'13 0001 WHEREAS, properties in the City and District may be developable if services were available, and though the municipal services proximate to these properties are othenruise unavailable because they lie in the sphere of influence of the other agency, and because the propertíes are not developed and frequently uninhabited, there currently is no basis for an extension of service to resolve any existing or potential threat to public health and safety; and WHEREAS, it is the desire of the City and District to enter into an agreement to facilitate development and provide municipal services to prpperties within their respective service areas and spheres of influence in a manner that complies with the intent of Government Code Section 56133; and WHEREAS, such an agreement, establishing a service and billing procedure that addresses the interests of the Parties, complies with the provisions of the Cortese- Knox-Hertzberg Local Government Reorganization Act of 2000 related to extension of services beyond local agencies' service areas but within that city's spheres of influence, and institutes orderly protocol for transition of service delivery to the City when deemed appropriate by that agency. Now, therefore, in consideration of the recitals set fotlh above, and the mutual covenants and undertakings set forth herein, the mutual receipt and sufficiency of which is hereby acknowledged, the Parties hereto agree as follows: 1. That the foregoing recitals are true and correct and incorporated herein by this reference as though fully set forth. 2. This Memorandum of Understanding and its terms shall apply to the unincorporated territories bound by North Avenue, Minnewawa Avenue, Annadale Avenue, and the current and future corporate limits of the City of Fresno (the "Agreement Area"). 3. The purpose of this Memorandum of Understanding is to document how the City would be permitted to extend municipal services to serve lands within its sphere of influence, by contracting with the District to provide such services on an interim basis. 4. Notwithstanding the provisions of the City/County MOU, any development entitlement processed by the County in the "Agreement Area," shall be referred to the City and the District for an evaluation of the project's municipal service demand, and the service plan of the agencies. 5. Upon receipt of the County referral, the City shall make the following determinations within the time prescribed by Article lV of the City/County MOU: (a) whether it is feasible to annex the subject property; (b) whether it is feasible to provide municipal services to the subject property; and(c) whether it is feasible to extend municipal services to the subject property. l789l57vl I 15273 0001 6. Upon receipt of the County referral, the District shall make the following determinations within 60 days of receipt:(a) whether it is feasible to annex the subject property; (b) whether it is feasible to provide municipal services to the subject property; and(c) whether it is feasible to extend municipal services to the subject property. 7. lf the City determines that it is neither feasible to annex the subject property; to provide municipal services to the subject property; nor to extend municipal services to the subject property, and if the District determines that it is feasible to provide municipal services to the subject property, then the provisions and terms of this Memorandum of Understanding may be exercised by the agencies. 8. The City shall make application to the Fresno LAFCo requesting that it authorize the City to provide new or extended services by contract or agreement outside its jurisdictional boundaries, but within its sphere of influence in anticipation of a later change of organization, pursuant to the terms of this Memorandum of Understanding. g. Fresno LAFCo will evaluate each complete request for an extension of seruices pursuant to Government Code Section 56133. 10. lf authorized by Fresno LAFCo to provide municipal services outside of the city limit, the City will direct the property owner to establish a City of Fresno Public Utility account for the necessary municipal services. 11. The City will then contract with the District to purchase necessary municipal services. 12. The property owner is responsible for all expenses associated with implementing an agreement between the City and District, as contemplated by this Memorandum of Understanding, including, but not limited to, construction, maintenance, replacement, improvement, and abandonment of the municipal service connection(s) to the subject properly within the Agreement Area. 13. The term of this Memorandum of Understanding shall commence on the Effective Date and shall continue unless rescinded in writing by all Parties. 14. This Memorandum of Understanding may be executed in counterparts and all separately executed copies of this Memorandum of Understanding shall be read and interpreted as one document. Signatures may be provided by PDF or facsimile. 15. The record owner of title to the subject property within the Agreement Area shall record a covenant, in a form acceptable to the City, stating that the record owner, and all subsequent owners of the subject property, shall not protest the future annexation of the subject property if such annexations are not subject to conditions, excluding the 1789157v1 I 15273.0001 facts pertaining to the annexation itself or the extension of water service, which might materially prejudice those holding an interest in the real propedy. WHEREFORE, the Parties have entered into this Memorandum of Understanding as of the Effective Date above. MALAGA COU WA DISTRICT: By: Name/Ti Dated: CITY OF RESNO: By: Thomas C. Dated: FRESNO LOCAL AGENCY FO By: ATTEST: WONNE SPENCE, CMC CITYCLERK Name/Title: Dated: q-// -/( APPRO AS TO FORM: By blic Utilities Director cir rney Dated: APPROVED AS TO FORM: oatea: ê,/tf//6 By WLtl= r^--1-\ Deputy I'f crco þ4rr+inc?-V4r-s c4пe 4lLt llv APPR S TO FORM: MISSION: 1789157v1 / 15273.0001