OLD BUSINESS Agenda Item No.: 8a CC Mtg.: 11/08/2011

Transcription

1 OLD BUSINESS Agenda Item No.: 8a CC Mtg.: 11/08/2011 DATE: November 3, 2011 TO: Mayor and City Council Members FROM: City Manager's Office SUBJECT: FOLSOM PLAN AREA SPECIFIC PLAN PROJECT i. A Resolution No A Resolution Authorizing the City Manager to Execute Tax Exchange Agreement with the Sacramento Public Library Regarding Property Tax Exchange, and the Detachment of the Folsom Plan Area Project Area from the Sacramento County Library Service Area for Annexation into the City of Folsom Service Area ii. Resolution No A Resolution Authorizing the City Manager to Execute an Agreement with the Sacramento Metropolitan Fire District Regarding the Property Tax Exchange and the Detachment of the Folsom Plan Area Project Area from the Sacramento Metropolitan Fire District Service Area for the Annexation into the City of Folsom Service Area; iii. Resolution No A Resolution Authorizing the City Manager to Execute an Agreement with the El Dorado Hill Fire Department Regarding Service Levels and Property Tax Exchange for the Folsom Plan Area Project Area iv. Resolution No A Resolution Authorizing the City Manager to Execute a Tax Exchange Agreement Between the County of Sacramento and the City of Folsom, Relating to the South of Highway 50 Folsom Plan Area Annexation and Property Adjacent to the Folsom Auto Mall v. Resolution No A Resolution Requesting the Local Agency Formation Commission (LAFCo) to Amend the Mitigation Measure and the Monitoring Plan EIR/EIS to be adopted by LAFCo to make minor, non-substantial changes to reflect the City of Folsom as the enforcement and monitoring agency in place of the County of Sacramento as to certain measures and plans. vi. Resolution No A Resolution to the Sacramento Regional County Sanitation District Supporting the Annexation of the Folsom Plan Area Project Area into the Sacramento Regional County Sanitation District Service Area vii. Resolution No A Resolution Requesting the Sacramento Local Area Formation Commission (LAFCo) to Include a Requirement for an Avigation Easement with its Approval of the Annexation of the Folsom Plan Area Project Area

2 BACKGROUND / ISSUE As authorized through Resolution No. 8879, adopted by the City Council at the July 26, 2011, meeting, the City Manager submitted an application for annexation of the Folsom Plan Area (FPA) to the Local Agency Formation Commission (LAFCo), which initiated the process and proceedings for annexation of approximately 3,600 acres of property located between U.S. Highway 50 on the northern boundary and White Rock Road on the south, and between Prairie City Road and the Sacramento/El Dorado County boundary. SERVICE AREAS The City is required to conduct a municipal service review with the special districts that are currently designated to provide services within the FPA. As part of the service reviews, the City must also resolve any known service boundary adjustments to reflect the proposed service-provider for the FPA. To allow the City to continue to provide full services within the City limits, detachments are required from the Sacramento County, the Sacramento Public Library and Sacramento Metropolitan Fire District, which are currently the designated service providers for the area within the FPA. For Sacramento County the detachments include the Wilton-Cosumnes (County Service Area 4b), Zone 13 and Sacramento Waste Management and Recycling. To better define service levels, an agreement between the City and the El Dorado Hills Fire Department (EDHFD) has been developed for consideration by the City Council. If adopted by the City Council, the EDHFD is scheduled to adopt this agreement at their November meeting. Currently, there is no boundary for wastewater treatment services within the FPA, and Sacramento Regional County Sanitation District (SRCSD) provides wastewater treatment to the City. Thus, the City and SRCSD are seeking to continue this service arrangement, which requires annexation by SRCSD, to add the FPA to the SRCSD service area. Finally, air traffic in and out of Mather Airport will fly across portions of the FPA. Both the City and County staff have expressed concern pertaining to noise emanating from aircraft flying to and from the Airport in proximity to the FPA. The City subsequently entered into a Tier 1 Development Agreement with the then current property owners of the FPA properties that includes a requirement that the owners of the property in the FPA to record an Avigation Easement on properties in the FPA in a form satisfactory to the City. The Specific Plan also included this requirement. The property owner's representative spoke in favor of the Avigation Easement. The City's next step is to request LAFCo to include in a condition of approval of the annexation that an Avigation Easement that shall be recorded against property in the FPA prior to development. MITIGATION AND MONITORING LAFCo Resolution No requires the City to comply with the mitigation measures pursuant to CEQA by LAFCo Resolution No to address specific environmental impacts resulting from the project. At the June 14, 2001 City Council meeting, Resolution No. 8860, A Resolution Certifying the Folsom Plan Area Specific Plan Final Joint Environmental Impact Report/Environmental Impact Statement, was adopted that included a mitigation and monitoring plan for the FPA. During the City Council proceeding, Sacramento County requested to modify the mitigation measures solely to make the County's requested changes regarding the proper enforcement authority. The City agreed with the suggested changes. To implement the proposed changes, the City must request LAFCo, the responsible party for the decision of annexation, to modify the enforcement authority for the mitigation measures of the CEQA document. CEQA allows LAFCo, as a responsible agency, to consider the alternatives and mitigation measures for the project and to make the same findings as the lead agency, and to make the requested changes since the

3 mere change in identity of the local agency responsible for enforcing the mitigation measures could not result in new or more severe significant effects. TAX EXCHANGE AGREEMENTS As a requirement for annexation, the City must enter into a tax exchange agreement with Sacramento County so that each agency does not incur revenue impacts as a result of the proposed annexation of the FPA. Concurrent with the tax exchange provisions between the City and Sacramento County for the FPA, the two agencies have reviewed the tax exchange agreements associated with the Folsom Auto Mall area. From this review, the agencies have agreed to update the tax exchange provisions for the Auto Mall that establishes an equal allocation for automobile sale tax revenues. The resolutions included herein seek to authorize the City Manager to execute the tax exchange agreement with Sacramento County, and to execute agreements with the special districts regarding service levels, boundaries for detachment or annexation and tax exchange provisions used in the final agreement between the City of Folsom and Sacramento County. POLICY /RULE As required under the Cortese-Knox-Hertzberg Local Government Reorganization Act and with the LAFCo requirements contained in Resolution Nos and 1196, which created the Folsom Sphere of Influence south of Highway 50, the City is required to enter into tax exchange agreements and a municipal services review to ensure timely, orderly and sustainable services are established for each proposed service provider associated with the annexation application with LAFCo. ANALYSIS Prior to LAFCo approval of the annexation, Resolution No (Attachment H) specifically requires the City to meet and confer with the El Dorado Irrigation District (EID) and Sacramento Metropolitan Fire Protection District (SacMetro Fire) and any other special districts regarding the impacts to the districts and their operations. In consideration to the existing service providers within the FPA as shown in the FPA Project Area (Attachment I), the City met and conferred with the following districts: El Dorado Irrigation District El Dorado Hills Fire District Sacramento Metropolitan Fire Protection District Sacramento County Fair Oaks Cemetery Folsom Cordova Unified School District Los Rios Community College District Sacramento-Yolo Mosquito and Vector Control Sloughhouse Resource Conservation Sacramento Regional County Sanitation District Sacramento Public Library. The review process with each agency addressed the fiscal and operational impacts including assessments, bond indebtedness, loss of property tax revenues and other related changes. Since the FPA is undeveloped and consists of low-value grazing activities and a single residential unit, existing services and tax revenues to the Project Area is very limited or non-existent

4 Other factors considered with the special districts include the service boundaries to reflect the proposed service-provider boundaries for the FPA. Any known service boundary annexations or detachments of services areas to allow the City to become the service provider to the FPA must be resolved prior to LAFCo taking any action to approve annexation. Table 1, Summary of Service Area Actions, summarizes the special districts designated to provide services to the FPA and identifies those districts that would require annexation or detachment based on the proposed service provider responsibilities. El Dorado Irrigation District/Fire District For EID, including the El Dorado Hills Fire District (EDHFD) that was once part of EID and has coincidental boundaries (Attachment J), LAFCo Resolution No specifically includes a provision whereby the City would not request a detachment from the EID service area. Folsom, EID and El Dorado Hills Fire have agreed that no service area boundaries are included in the proposed annexation, and that services would be consistent with the operating agencies. EID adopted the FPA Water Supply Assessment at their January 24, 2011 board meeting, and has responded to LAFCo on their impacts to the FPA annexation (Attachment K). EDHFD and Folsom have entered into an agreement that outlines the service level principals between the two agencies and includes a provision that their current amount of tax revenue dollars would remain (Attachment L). Table 1 Summa of Service Area Actions N o. A Intent for Service Area Agency/District Neutral Annexation Detachment Sacramento County 1 County-wide Equalization 3 2. Wilton-Consumnes (4b) 3 3. County Roads 4. County General 5. Juvenile Hall 6. Regional Occup. Center 3 T. Infant Dev-Mental l HA 8. Children's Institute 9. Couty Supt-Admin 10. Dev Center Handicapped 11. Zone Tax Zone into Waste Management and Recycling 3 B El Dorado Hills Fire 3 C El Dorado Irrigation District 3 D Fair Oaks Cemetery 3 E FCUSD 3 F Los Rios Community College 3 G Sacramento Metro Fire 3 H Sacto-Yolo Mosquito I Sloughouse Resource 3 J SRCSD 3 K Sacramento Public Library

5 Sacramento Metropolitan Fire Protection District Sacramento Metropolitan Fire Protection District (SacMetro) is designated as the service provider for the existing area within the FPA (Attachment M). The City of Folsom is currently a full service provider within the existing city limits, including fire protection services by the Folsom Fire Department. The City has expressed a desire to maintain its position as a full service provider. Therefore, the City has developed a service agreement with SacMetro to detach the FPA from the SacMetro service boundary and include the FPA with the annexation (Attachment N). This agreement is scheduled for consideration by the SacMetro Board in a special November meeting. Because of the overlapping fire protection areas served by each agency, Folsom also agreed to participate in tax exchange revenues in order to fund the equivalent of a full fire unit as proposed by SacMetro for the area west of the FPA. Sacramento County Sacramento County is currently designated to provide various services within the FPA as shown in Table 1 and currently receives tax revenue from the FPA area. The City of Folsom is not seeking to change the service boundary area or the tax exchange allocations for the following services and therefore has no proposed actions: County-wide Equalization Juvenile Hall Regional Occupancy Center Infant Development-Mentally Handicapped Infant Development-Physically Handicapped Children's Institute County Supt-Admin Development Center - Handicapped For the remaining services, the following is proposed: a) County Roads and County General Services: Prior to the annexation, the County General Services and County Roads receive property tax allocation revenues. Upon annexation, the property tax allocation revenues for these two services will be integrated into the City-County tax share agreement. b) Zone 13 : The County's Zone 13 service area is currently includes the FPA Project Area (Attachment 0). Zone 13 provides the comprehensive long-range planning and engineering studies related to flood control, drainage, water resource development, water supply management, and water conservation for all or part of the unincorporated area of Sacramento County and the cities of Citrus Heights, Elk Grove and Rancho Cordova. The City of Folsom currently provides these services within the Folsom City limits, and has developed master plans for providing services to the FPA. Water supply, conservation and water resources related regulatory requirements and controls would become part of the City's responsibility upon annexation. Zone 13 specifically identifies two functions of the program: 1) Conducting regional water resources planning activities. 2) Providing partial funding for the Water Forum Successor Effort for regional water supply planning activities

6 Additionally, Zone 13 identifies three activities of the program: 1) Sacramento Central Groundwater Authority: Administration and cost participation for the Sacramento Central Groundwater Authority (SCGA), a Joint Powers Authority. SCGA seeks to work collaboratively with participating entities in order to promote coordination of water policies and activities throughout the region. 2) Delta County Coalition: Participation in the five -member Delta County Coalition (Contra Costa, Sacramento, San Joaquin, Solano, and Yolo), monitoring and developing policy for the Bay/Delta Conservation Plan. 3) South Sacramento Habitat Conservation Plan: Participation in the preparation of the South Sacramento Habitat Conservation Plan (SSHCP), which will be an agreement between state/federal wildlife and wetland regulators and participating local jurisdictions, which does not include the City. In review of the functions and activities within Zone 13, the City considers these services duplicative to the assigned City functions and activities as shown in Table 1 and discussed below. Therefore, the City will be requesting LAFCo support a detachment from Zone 13 and include the service area with the FPA annexation. Table 2, Duplication of Services with Zone 13 DESCRIPTION SCWA Folsom a) Regional water resources planning - water su pply and flood control 3 3 b) The Water Forum Successor Effort 3 3 c) Sacramento Central Groundwater Authority 3 3 d) Delta legislative representation 3 3 e) Habitat Conservation Plans 3 3 a) Regional water resources planning activities : The City has been a very active participant in regional water resources planning. Serving as a proactive participant for regional planning, Folsom has been successful in securing federal grants for analyzing potential exchange and management scenarios for the East County Area, which includes Folsom. As part of these activities, Folsom has taken a leadership role to facilitate regional planning between various water agencies in the East County, which has included the Sacramento County Water Agency, Golden State Water Company, East Bay Municipal Utilities District and other regional water agencies. The City also has an active stormwater/flood control that is incorporated into the FPA drainage master plan as part of the DEIR/EIS. Maintaining this function within Zone 13 would be duplicative and a loss of local representation for the City. b) Water Forum Successor Effort: Compliance with the Water Forum for the FPA is the responsibility of the City as outlined in Condition No. 11 of Resolution No Compliance and enforcement of the Water Forum for the FPA would become a City activity. Maintaining this function within Zone 13 would be duplicative and a loss of local representation for the City. c) Sacramento Central Groundwater Authority: The City is a signatory to the Sacramento Central Groundwater Authority (SCGA). Although the City has no municipal groundwater facilities and does not have the ability to use overlying groundwater within the FPA, the City remains committed to participate and support the SCGA activities in order to promote

7 regional planning for dry-year and sustainability of resources within the County, including Folsom. Maintaining this activity within Zone 13 would be duplicative and a loss of local representation for the City. d) Delta County Coalition: The City has been very active with the recent state and federal action regarding the Delta. Through the Regional Water Authority and other northern California coalitions, Folsom has been proactive to work with regional agencies and groups to represent the group of "upstream" water agencies to monitor and develop policy for the Delta and the related Bay/Delta Conservation Plan. Maintaining this activity within Zone 13 would be duplicative and a loss of local representation for the City, which the City is highly concerned since the water agencies adjacent to the Delta have differing perspectives than the "upstream" water agencies regarding matters of the Delta policies. e) South Sacramento Habitat Conservation Plan: The FPA is not a participating area for the South Sacramento Habitat Conservation Plan (SSHCP). Thus, having the FPA remain within the Zone 13 area and pay the associated charges of Zone 13 would not meet the cost-of-service requirements, and would be a duplicative activity. c) Tax Rate Area (TRA) : Only a portion of Tax Rate Area is in the FPA and therefore, the City is proposing that the small triangle of in the FPA be incorporated into Tax Rate Area , which is entirely in the FPA. (Attachment P) For purposes of analysis in the tax sharing agreement it was assumed that this change had been made. d) Wilton-Cosumnes (4b): The Wilton-Cosumnes (County Service Area 4b) is currently the parks and recreation service provider for the area within the FPA (Attachment R) and currently receives tax revenue from the FPA area. The City is seeking to detach the boundary area from the County Service Area 4b and include the service area with the City's annexation. To avoid revenue impacts to the County Service Area 4b, Folsom has agreed to maintain the current amount of property tax revenues received for the FPA area. e) Sacramento Waste Management and Recycling: Sacramento Waste Management and Recycling is the current designated service provider within the FPA (Attachment Y). As an undeveloped area, no services are currently provided to the FPA. The City has expressed a desire to maintain its position as a full service provider, and is seeking to detach the boundary area from Sacramento Waste Management and Recycling and include the service area with the City's annexation. Since no services are provided to the FPA, there are no revenue impacts to the Sacramento Waste Management and Recycling within the FPA. Fair Oaks Cemetery Fair Oaks Cemetery is currently the service provider for the area within the FPA (Attachment S). The City of Folsom is not seeking to change the boundary area or the tax exchange allocation for Fair Oaks Cemetery. Therefore, no action is proposed. Folsom Cordova Unified School District Folsom Cordova Unified School District (FCUSD) is currently the service provider for the area within the FPA (Attachment T) and currently receives tax revenue from the FPA area. The City of Folsom is not seeking to change the boundary area or the tax exchange allocation for FCUSD. Therefore, no action is proposed

8 Los Rios Community College District Los Rios Community College District (Los Rios) is currently the service provider for the area within the FPA (Attachment U) and currently receives tax revenue from the FPA area. The City of Folsom is not seeking to change the boundary area or the tax exchange allocation for Los Rios. Therefore, no action is proposed. Sacramento-Yolo Mosquito and Vector Control Sacramento-Yolo Mosquito and Vector Control is currently the service provider for the area within the FPA (Attachment V) and currently receive tax revenue from the FPA area. The City of Folsom is not seeking to change the boundary area or the tax exchange allocation for Sacramento-Yolo Mosquito and Vector Control. Therefore, no action is proposed. Sloughhouse Resource Conservation Sloughhouse Resource Conservation (SRC) is currently the service provider for the area within the FPA (Attachment W) and currently receives tax revenue from the FPA area. The City of Folsom is not seeking to change the boundary area or the tax exchange allocation for SRC. Therefore, no action is proposed. Sacramento Regional County Sanitation District The FPA is currently outside any of the wastewater treatment service boundaries and receives no wastewater collection or treatment services from a district or agency (Attachment X). The City has prepared a wastewater master plan to demonstrate that there is sufficient wastewater transmission and treatment capacity to serve the existing customers and future customers. As part of the Folsom-East Interceptor System No. 3 (FE-3), the City paid Sacramento Regional County Sanitation District (SRCSD) to provide capacity for the future FPA. The FE-3 system is an existing facility that begins north of U.S. Highway 50 along Iron Point Road, and conveys wastewater westerly to the SRCSD treatment facility located north of Elk Grove and east of interstate-5. Under the proposed annexation and as agreed with SRCSD, the FPA would be annexed into the SRCSD service area, which will require the SRCSD Board to take an action to support the annexation prior to the LAFCo public hearing. The wastewater collection system would be operated and maintained by the City of Folsom in a manner similar to the existing collection services provided within the City. A resolution to the SRCSD has been prepared for consideration by the City Council to support the annexation of the FPA Project Area into the SRCSD Service Area. Sacramento Public Library Sacramento Public Library is currently the service provider for the area within the FPA (Attachment Z) and currently receives tax revenue from the FPA area. The City is seeking to detach the boundary area from Sacramento Public Library and include the service area with the City's annexation. To avoid revenue impacts to the Sacramento Public Library, Folsom has agreed to maintain the current amount of property tax revenues received for the FPA area. Avigation Easement Traffic in and out of Mather Airport will fly across portions of the FPA. Consequently, both City and County staff previously addressed the desire for an Avigation Easement that covers the FPA. Since the property owner's representative spoke in favor of the Avigation Easement, the Tier 1 Development Agreement and the Specific Plan includes a requirement that an Avigation Easement be placed on the property. The Avigation Easement has been drafted by the City (Attachment CC) and reviewed by the property owners. The County has requested the Avigation Easement be part of LAFCo approvals. With this action, the City Council is directing staff to request that LAFCo include in its annexation approval

9 that an Avigation Easement substantially in the form attached to the Avigation Easement Resolution or as later modified by the City be recorded by the property owners prior to development of the FPA. FINANCIAL IMPACT The development of the FPA required two significant fiscal impact analyses. The first is the designing and financial feasibility of building the infrastructure that will allow for the development of the FPA. The second is the analysis of the cost considerations of the City providing the desired service level to the FPA as it develops and at build-out. The infrastructure costs are presented in the Public Facilities Financing Plan (PFFP), which was initially prepared by Economic & Planning Systems (EPS) dated June, 2010 and the May, 2011 addendum prepared by Kosmont Companies. These reports indicate a total capital facilities cost of $1,237,335,249 and identify various revenue and funding sources that may potentially be utilized (Attachment BB). The financial burden, as a percentage of the anticipated market value of the land uses at final build-out (residential, commercial and retail structures and land improvements) was used as a test of financial feasibility. If the total burden of fees to the property owner and/or developer is too great then project development and build-out may be financially infeasible. Based on this analysis the presented plan's average infrastructure cost burden is 19.1%. The Kosmont report states that historical experience indicates that total development fees in a range of 15% - 20% of development value are considered financially feasible. The second part of the infrastructure analysis is whether or not the City will have the capacity to build and finance the required infrastructure. A great deal of time and effort was spent in defining the necessary improvements and facilities that will be required in the FPA, so that the quality and standards of the City of Folsom are maintained and enhanced. Police and Fire facilities, a branch library, relocation of the corporation yard, park and trail development, as well as water, sewer, and storm drainage systems, and road design and construction all have to be considered and analyzed. Based on an analysis of the use of existing city fees, special financing districts and assessments, the aggressive use of outside funding, and the use of strategic timing in the development, it is reasonable to assume that the financial impact of the development of the FPA will be feasible (Attachment AA). The second major analysis is the cost considerations of the City providing the desired service level to the FPA. This is presented in the Tax Exchange Agreement with the County of Sacramento. (Attachments D and AA) In conducting this analysis there were four major criteria used to determine feasibility. First, did the FPA have the revenue generating capacity to fund City services at the desired level? Second, was the revenue generating capacity present during all stages of development? Third, was there equal risk to both parties (the City and County) from the revenue sources? Fourth, were the FPA costs equivalent to the costs associated with existing City services? In regards to the first criteria, the analysis indicates that the total annual general fund operating costs needed for providing services in the FPA is $29,935,590. Of this amount, $6,876,685 will come from program revenues, $4,222,084 will come from other general fund revenues, leaving $18,836,821 to be financed by property taxes, sales taxes and transient occupancy taxes. The tax sharing model proposed by the County produces a % revenue coverage ratio or $23,498,938 in revenue to the City from these three sources

10 This analysis also looked at the feasibility of the revenue sharing arrangement at each phase of development. There were 5 phases based on population and assessed value of the FPA developments. While the first phase is the most tenuous, due to start up costs and higher operating costs associated with the first service options, the model still provides a revenue coverage ratio of 135.8%. The lowest ratio is in the third phase when the ratio is at 122.3%. This is because many of the City services begin being directly provided during this phase (e.g. the branch library). The third criteria examined the split from each revenue source (after their Education Revenue Augmentation Fund (ERAF) contribution) which is 84.44% to the City and 16.55% to the County. In the model each party will receive the same proportion of its revenue from each source, thereby eliminating any advantage gained by having a more secure source of revenue. In this Agreement, each party receives 74.0% of its total revenue from property taxes, 24.1% from sales taxes, and 1.9% from transient occupancy taxes. The fourth criteria examined the net operating cost of services in the FPA compared to the existing costs associated with the City providing services. This was done on a per capita basis. The analysis revealed that the FPA at build-out will have net per capita operating expenses of $ Existing City services have had a net per capita cost ranging from $ to $1, over the last five years. This indicated that the City's proposed costs for the FPA were in line with existing costs of providing similar services. Based on the overall financial analysis of the operational costs the recommended tax sharing agreement is feasible. Additionally, the Agreement calls for the City and County to revise the tax exchange provisions for the Folsom Auto Mall. The revision will add the new Honda dealership to the existing tax sharing provisions for the Auto Mall, which is a 50/50 split of sales tax revenues. This will have a positive effect on the City's sales tax revenues. ENVIRONMENTAL REVIEW On June 6, 2001, LAFCo adopted a series of resolutions approving the City of Folsom Sphere of Influence Amendment Application. As part of that resolutions adopted by LAFCo, the Final Environmental Impact Report for the City of Folsom Sphere of Influence Amendment Application was adopted (Resolution No. 1192); Mitigation Measures and a Mitigation Monitoring Program for the City of Folsom Sphere of Influence Amendment Application was adopted (Resolution No. 1193); determinations were adopted regarding the City of Folsom Sphere of Influence Amendment Application (Resolution No. 1194); Facts of Overriding Considerations were adopted (Resolution No. 1195); and Resolution No was adopted that incorporated Resolutions No through No and outlined certain provisions that are required prior to the annexation of the FPA. On June 14, 2011, the City Council approved Resolution No A Resolution Certifying the Folsom Plan Area Specific Plan Final Joint Environmental Impact Report/Environmental Impact Statement. The City Council also adopted Findings of Fact and a Statement of Overriding Considerations and a Mitigation Monitoring and Reporting Program for the FPASP project. CEQA Guidelines section 15096, subdivisions (g) and (h), require a responsible agency, such as LAFCO in these circumstances, to consider alternatives and mitigation measures to address environmental effects of those parts of a project that are within the agency' s approval authority. While a responsible agency can

11 simply adopt the same mitigation measures that the lead agency previously approved, CEQA grants the responsible agency the authority to consider revisions to those measures where appropriate or necessary. In this matter, both the City of Folsom and the County of Sacramento have requested revisions to certain mitigation measures previously adopted by the City when it approved the project, in order to change the identity of the authority responsible for ensuring the measures are enforced, from the County to the City. Before amending previously adopted mitigation measures prior to certifying an EIR as its own, CEQA Guidelines section requires any agency to consider whether the contemplated changes would constitute "significant new information" that could result in new or more severe significant environmental impacts than were previously disclosed in the public draft of the EIR. LAFCO staff has concluded that the mere change in identity of the local agency responsible for enforcing the mitigation measures could not result in new or more severe significant effects and thus, recirculation of the EIR is not required before the Board could make the findings required by CEQA Guidelines sections 15091, and 15096, subd. (h). ATTACHMENTS A. Resolution No A Resolution Authorizing the City Manager to Execute Tax Exchange Agreement with the Sacramento Public Library Regarding Property Tax Exchange, and the Detachment of the Folsom Plan Area Project Area from the Sacramento County Library Service Area for Annexation into the City of Folsom Service Area B. Resolution No A Resolution Authorizing the City Manager to Execute an Agreement with the Sacramento Metropolitan Fire District Regarding the Property Tax Exchange and the Detachment of the Folsom Plan Area Project Area from the Sacramento Metropolitan Fire District Service Area for the Annexation into the City of Folsom Service Area; C. Resolution No A Resolution Authorizing the City Manager to Execute an Agreement with the El Dorado Hill Fire Department Regarding Service Levels and Property Tax Exchange for the Folsom Plan Area Project Area D. Resolution No A Resolution Authorizing the City Manager to Execute a Tax Exchange Agreement Between the County of Sacramento and the City of Folsom, Relating to the South of Highway 50 Folsom Plan Area Annexation and Property Adjacent to the Folsom Auto Mall E. Resolution No A Resolution Requesting the Local Agency Formation Commission (LAFCo) to Amend the Mitigation Measure and the Monitoring Plan EIR/EIS to be adopted by LAFCo to make minor, non-substantial changes to reflect the City of Folsom as the enforcement and monitoring agency in place of the County of Sacramento as to certain measures and plans. F. Resolution No A Resolution to the Sacramento Regional County Sanitation District Supporting the Annexation of the Folsom Plan Area Project Area into the Sacramento Regional County Sanitation District Service Area G. Resolution No A Resolution Requesting the Sacramento Local Area Formation Commission (LAFCo) to Include a Requirement for an Avigation Easement with its Approval of the Annexation of the Folsom Plan Area Project Area H. LAFCo Resolution No adopted on June 6,

12 I. Project Area Map: Folsom Plan Area Specific Plan Map with 500-foot Radius J. El Dorado Irrigation District and El Dorado Hill Fire District Service Area Map within the Folsom Plan Area K. El Dorado Irrigation District Response Letter to LAFCo Regarding the FPA Annexation dated September 9, 2011 L. City of Folsom and El Dorado Hills Fire District Service Agreement (DRAFT) Sacramento Metropolitan Fire Protection District Service Map and Services Summary N. City of Folsom and Sacramento Metropolitan Fire Protection District Agreement (DRAFT) 0. Zone 13 Service Area Map and Services Summary P. Map of the Property Tax Rate Areas, Summer 2011 Q. Property Tax Agreement Map, Sacramento and City of Folsom for Auto Mall Area R. The Wilton-Cosumnes (County Service Area 4b) Service Map and Services Summary S. Fair Oaks Cemetery Service Map and Services Summary T. Folsom Cordova Unified School District - Letter to LAFCo Regarding the FPA Annexation Application dated October 7, 2011 U. Los Rios Community College District - Letter to LAFCo Regarding the FPA Annexation Application dated October 17, 2011 V. Sacramento-Yolo Mosquito and Vector Control Services Summary W. Sloughhouse Resource Conservation Service Map and Services Summary X. Sacramento Regional County Sanitation District Service Map and Services Summary Y. Sacramento County Waste Management and Recycling (Solid Waste) Services Map and Services Information Z. Sacramento Public Library Services Summary and City of Folsom and Sacramento Public Library Agreement (DRAFT) AA. Tax Exchange Agreement Between the County of Sacramento and the City of Folsom Relating to the South of Highway 50 Folsom Plan Area Annexation with Maps, Analysis of the Allocation of Tax Shares and General City Fund Operational Costs BB. Table 1-3 from the Folsom Plan Area Specific Plan PFFP Addendum Infrastructure Capacity Analysis, Estimated Infrastructure Costs and Sources of Funding dated May 2011 CC. Grant of Avigation Easement (DRAFT)

13 DD. Resolution No RECOMMENDATION/ CITY COUNCIL ACTION The City Manager's Office recommends that the City Council pass and adopt the following: i. A Resolution No A Resolution Authorizing the City Manager to Execute Tax Exchange Agreement with the Sacramento Public Library Regarding Property Tax Exchange, and the Detachment of the Folsom Plan Area Project Area from the Sacramento County Library Service Area for Annexation into the City of Folsom Service Area ii. Resolution No A Resolution Authorizing the City Manager to Execute an Agreement with the Sacramento Metropolitan Fire District Regarding the Property Tax Exchange and the Detachment of the Folsom Plan Area Project Area from the Sacramento Metropolitan Fire District Service Area for the Annexation into the City of Folsom Service Area; iii. Resolution No A Resolution Authorizing the City Manager to Execute an Agreement with the El Dorado Hill Fire Department Regarding Service Levels and Property Tax Exchange for the Folsom Plan Area Project Area iv. Resolution No A Resolution Authorizing the City Manager to Execute a Tax Exchange Agreement Between the County of Sacramento and the City of Folsom, Relating to the South of Highway 50 Folsom Plan Area Annexation and Property Adjacent to the Folsom Auto Mall v. Resolution No A Resolution Requesting the Local Agency Formation Commission (LAFCo) to Amend the Mitigation Measure and the Monitoring Plan EIR/EIS to be adopted by LAFCo to make minor, non-substantial changes to reflect the City of Folsom as the enforcement and monitoring agency in place of the County of Sacramento as to certain measures and plans. vi. Resolution No A Resolution to the Sacramento Regional County Sanitation District Supporting the Annexation of the Folsom Plan Area Project Area into the Sacramento Regional County Sanitation District Service Area vii. Resolution No A Resolution Requesting the Sacramento Local Area Formation Commission (LAFCo) to Include a Requirement for an Avigation Easement with its Approval of the Annexation of the Folsom Plan Area Project Area Submitted, Kennel V. Payne, WAT#R RESOURCES David Miller, DIRECTOR, COMMUNITY AND I/NVIRONMENTAL DEVELOPMENT DEVELOPMENT DEPARTMENT

14 Attachment A

15 RESOLUTION NO A RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE A TAX EXCHANGE AGREEMENT WITH THE SACRAMENTO PUBLIC LIBRARY REGARDING PROPERTY TAX EXCHANGE, AND THE DETACHMENT OF THE FOLSOM PLAN AREA PROJECT AREA FROM THE SACRAMENTO COUNTY LIBRARY SERVICE AREA FOR ANNEXATION INTO THE CITY OF FOLSOM SERVICE AREA WHEREAS, Section 99 to the California Revenue and Taxation Code requires a city seeking to annex property to its incorporated territory and an existing government entity affected by such annexation to agree upon an exchange of property taxes which are derived from such property and available to the jurisdictions following annexation of the property to the incorporated territory of the city; WHEREAS, the City of Folsom has filed an application with the Sacramento Local Agency Formation Commission ("LAFCO"), entitled "City of Folsom - Annexation of the Sphere of Influence South of Hwy 50 (LAFC 04-11)," requesting its approval of the annexation of approximately 3600 acres of real property to the City of Folsom (Annexation Area); WHEREAS, the Annexation Area is currently within the service area for the Sacramento County Public Library (Library), and the City of Folsom desires to be the library service provider for this area; WHEREAS, the Library and the City of Folsom desire to enter into a Property Tax Transfer Agreement pursuant to Section 99 of the California Revenue and Taxation Code for the Annexation Area; WHEREAS, the Library and the City of Folsom have negotiated a fair and equitable approach to the sharing of real property ad valorem taxes imposed and collected as authorized by the Revenue and Taxation Code in order to provide for detachment of the Library from the service area and to encourage sound urban development and economic growth, with the intent of the parties that the Library will receive specified sums of property tax revenues and the City will be the primary library service provider in the annexed area upon the effective date of the annexation; WHEREAS, the plan for library service shall be consistent with the current level provided and as the area develops will exceed the current level of service currently provided; WHEREAS, the agreement will be in a form acceptable to the City Attorney and containing the substantive terms which are provided in the agreement attached to this Resolution as Exhibit 1: NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Folsom authorizes the City Manager to execute a Tax Exchange Agreement with the Sacramento Public Library regarding Property Tax Exchange, and the detachment of the Folsom Plan Area Project Area from the Sacramento County Library Service Area for Annexation into the City of Folsom Service Area in a form containing the substantive terms as provided in Exhibit 1 to this Resolution. Resolution No Page 1 of

16 vote: PASSED AND ADOPTED this 8th day of November 2011, by the following roll-call AYES: NOES: ABSENT: ABSTAIN: Council Member(s): Council Member(s): Council Member(s): Council Member(s): Andrew J. Morin, MAYOR ATTEST: Christa Freemantle, CITY CLERK Resolution No Page 2 of

17 EXHIBIT

18 PROPERTY TAX EXCHANGE AGREEMENT BETWEEN THE SACRAMENTO PUBLIC LIBRARY AUTHORITY AND THE CITY OF FOLSOM RELATING TO THE FOLSOM PLAN AREA ANNEXATION This PROPERTY TAX EXCHANGE AGREEMENT ( hereinafter "Agreement") is made and executed in duplicate this day of October, 2011, by and between the SACRAMENTO PUBLIC LIBRARY AUTHORITY, a Joint Powers Agency (hereinafter referred to as "LIBRARY"), and the CITY OF FOLSOM, a California municipal corporation and charter city (hereinafter referred to as "CITY"). RECITALS A. On June 6, 1978, the voters of the State of California amended the California Constitution by adding Article XIIIA thereto which limited the total amount of property taxes which could be levied on property by local taxing agencies having such property within their territorial jurisdiction to one percent (1 %) of full cash value; and B. Following such constitutional amendment, the California Legislature added Section 99 to the California Revenue and Taxation Code which requires a city seeking to annex property to its incorporated territory and an existing government entity, in this case LIBRARY, affected by such annexation to agree upon an exchange of property taxes which are derived from such property and available to the LIBRARY and CITY following annexation of the property to the incorporated territory of CITY; and C. CITY has filed an application with the Sacramento Local Agency Formation Commission ("LAFCO"), entitled "City of Folsom - Annexation of the Sphere of Influence South of Hwy 50 (LAFC 04-11)," requesting its approval of the annexation of approximately 3500 acres of real property to CITY, consisting generally of the area within the CITY's South of Highway 50 sphere of influence; and D. LIBRARY and CITY wish to work together to develop a fair and equitable approach to the sharing of real property ad valorem taxes imposed and collected as authorized by the Revenue and Taxation Code in order to encourage sound urban development and economic growth, with the intent of the parties that LIBRARY shall continue to receive the same property tax revenue as it receives at the present time and the CITY will be the primary library service provider in the Annexation Area after the Annexation Date; and E. The level of library service shall be consistent with the current level provided and as the area develops will exceed the current level of service currently provided; and F. The purpose of this Agreement is to serve as a Property Tax Transfer Agreement pursuant to Section 99 of the California Revenue and Taxation Code for the Annexation Area. LIBRARY and CITY hereby agree as follows: Page 1 of 5

19 Section 1. Definitions. For purposes of this Agreement, the following terms shall have the meanings set forth below: (a) "Annexation Area" shall mean that portion of the unincorporated area of Sacramento County served by LIBRARY designated as the Folsom Plan Area, which includes the area within the sphere of influence of CITY, generally that area bounded by U.S. Highway 50 to the north, Prairie City Road to the west, White Rock Road to the south, and the Sacramento/Eldorado County boundary to the east. (b) "Annexation Date" shall mean the date specified by the Cortese- Knox-Hertzberg Local Governmental Reorganization Act of 2000 (California Government Code et seq.) as the effective date of the Annexation Area. (c) "South of Highway 50 Annexation" shall mean the annexation to the CITY of the Annexation Area as delineated in Sacramento Local Agency Formation Commission Application Control Number "LAFC 04-11", the annexation of which to CITY is subsequently approved and completed by the Sacramento Local Agency Formation Commission as provided in the Cortese-Knox-Hertzberg Local Governmental Reorganization Act of 2000 (California Government Code et seq.). (d) "Property Tax Revenue" shall mean revenue from "ad valorem real property taxes on real property", as said term is used in Section 1 of Article XIIIA of the California Constitution and more particularly defined in subsection (c) of Section 95 of the California Revenue and Taxation Code, that is collected from within the Annexation Area, and which is currently allocated to the LIBRARY general fund. Section 2. Purpose of Agreement. The purpose of this Agreement is to set forth the exchange of Property Tax Revenue between CITY and LIBRARY as allowed by Section 99 of the California Revenue and Taxation Code. Section 3. Exchange of Property Tax Revenues. On and after the Annexation Date, the LIBRARY and CITY shall exchange Property Tax Revenue as follows: (a) LIBRARY shall continue to receive the same amount of Property Tax Revenues received from the Annexation Area in fiscal year when and as such revenues are apportioned to jurisdictions in the tax rate area by the County Auditor pursuant to Article 2 of Chapter 6 of Part 0.5 of Division 1 of the Revenue and Taxation Code, including Revenue and Taxation Code section That sum is agreed to be (b) CITY shall receive any portion of the annual tax increment from the Annexation Area in excess of that amount owed to Library pursuant to this Agreement, if any, when and as such revenues are apportioned to jurisdictions in the tax rate area by the County Auditor pursuant to Article 2 of Chapter 6 of Part 0.5 of Division 1 of the Revenue and Taxation Code, including Revenue and Taxation Code section Section 4. Exchange by County Auditor. LIBRARY and CITY agree that all of the exchanges of Property Tax Revenue required by this Agreement shall be made by the County Auditor. Page 2 of

20 Section 5. Waiver of Retroactive Recove. If the validity of this Agreement is challenged in any legal action brought by CITY of any third party, CITY hereby waives any right to the retroactive recovery of any City property tax revenues exchanged pursuant to this Agreement prior to the date on which such legal action is filed in a court of competent jurisdiction. The remedy available in any such action shall be limited to a prospective invalidation of the Agreement. Section 6. Mutual Defense of Agreemen. If the validity of this Agreement is challenged in any legal action by a party other than LIBRARY or CITY, the parties agree to defend jointly against the legal challenge and to share equally any award of costs, including attorney's fees, against the parties or either of them. Section 7. Modification. The provisions of this Agreement and all of the covenants and conditions set forth herein may be modified or amended only by a writing duly authorized and executed by both the LIBRARY and CITY. Section 8. Reformation. LIBRARY and CITY understand and agree that this Agreement is based upon existing law, and that such law may be substantially amended in the future. In the event of an amendment of state law which renders this Agreement invalid or inoperable or which denies any party thereto the full benefit of this Agreement as set forth herein, in whole or in part, then LIBRARY and CITY agree to renegotiate the Agreement in good faith. Section 9. Effect of Tax Exchange Agreement. This Agreement shall be applicable solely to the Annexation Area and does not constitute either a master tax sharing agreement or an agreement on property tax exchanges which may be required for any other annexation to the CITY. Section 10. Entire Agreement. With respect to the subject matter hereof only, this Agreement supersedes any and all previous negotiations, proposals, commitments, writings, and understandings of any nature whatsoever between LIBRARY and CITY except as otherwise provided herein. Section 11. Notices. All notices, requests, certifications or other correspondence required to be provided by the parties to this Agreement shall be in writing and shall be personally delivered or delivered by first class mail to the respective parties at the following addresses: LIBRARY CITY Library Director City Manager Sacramento Public Library Authority City of Folsom Street 50 Natoma Street Sacramento, CA Folsom, CA Notice by personal delivery shall be effective immediately upon delivery. Notice by mail shall be effective upon receipt or three days after mailing, whichever is earlier. Section 12. Approval, Consent, and Agreement. Wherever this Agreement requires a party's approval, consent, or agreement, the party shall make its decision to Page 3 of 5

21 give or withhold such approval, consent or agreement in good faith, and shall not withhold such approval, consent or agreement unreasonably or without good cause. Section 13. Construction of Captions. Captions of the sections of this Agreement are for convenience and reference only. The words in the captions in no way explain, modify, amplify, or interpret this Agreement. IN WITNESS WHEREOF, the parties hereto have executed this Agreement in the County of Sacramento, State of California, on the dates set forth above. LIBRARY By Library Director Approved As to Form: Library Counsel CITY By: City Manager (SEAL) ATTEST: City Clerk Approved As to Form: City Attorney Page 4 of

22 This page intentionally left blank Page 5 of 5

23 Attachment B

24 RESOLUTION NO A RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE A PROPERTY TAX EXCHANGE AGREEMENT BETWEEN THE SACRAMENTO METROPOLITAN FIRE DISTRICT AND THE CITY OF FOLSOM RELATING TO THE FOLSOM PLAN AREA ANNEXATION AND THE DETACHMENT OF THE FOLSOM PLAN AREA PROJECT AREA FROM THE SACRAMENTO METRO FIRE DISTRICT SERVICE AREA FOR ANNEXATION INTO THE CITY OF FOLSOM SERVICE AREA WHEREAS, Section 99 to the California Revenue and Taxation Code requires a city seeking to annex property to its incorporated territory and an existing government entity affected by such annexation to agree upon an exchange of property taxes which are derived from such property and available to the jurisdictions following annexation of the property to the incorporated territory of the city; WHEREAS, the City of Folsom has filed an application with the Sacramento Local Agency Formation Commission ("LAFCO"), entitled "City of Folsom - Annexation of the Sphere of Influence South of Hwy 50 (LAFC 04-11)," requesting its approval of the annexation of approximately 3600 acres of real property to the City of Folsom (Annexation Area); WHEREAS, the Annexation Area is currently within the service area for the Sacramento Metropolitan Fire District (SMFD) and the City of Folsom desires to be the fire service provider for this area; WHEREAS, SMFD and the City of Folsom desire to enter into a Property Tax Transfer Agreement pursuant to Section 99 of the California Revenue and Taxation Code for the Annexation Area; WHEREAS, SMFD and the City of Folsom have negotiated a fair and equitable approach to the sharing of real property ad valorem taxes imposed and collected as authorized by the Revenue and Taxation Code in order to provide for detachment of the SMFD from the service area and to encourage sound urban development and economic growth, with the intent of the parties that the SMFD will receive specified sums of property tax revenues and the City will be the fire service provider in the annexed area upon the effective date of the annexation; WHEREAS, the plan for fire service shall be consistent with the current level provided and as the area develops will exceed the current level of service currently provided; WHEREAS, the agreement will be in a form acceptable to the City Attorney and containing the substantive terms which are provided in the agreement attached to this Resolution as Exhibit 1: NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Folsom authorizes the City Manager to Execute a Property Tax Exchange Agreement between the Sacramento Metropolitan Fire District and the City of Folsom relating to the Folsom Plan Area Annexation and the Detachment of the Folsom Plan Area Project Area from the Sacramento Metropolitan Fire District Service Area for Annexation into the City of Folsom Service Area in a form acceptable to the City Attorney and containing the substantive terms as provided in Exhibit 1 to this Resolution. Resolution No Page 1 of

25 vote: PASSED AND ADOPTED this 8t' day of November 2011, by the following roll-call AYES: NOES: ABSENT: ABSTAIN: Council Member(s): Council Member(s): Council Member(s): Council Member(s): Andrew J. Morin, MAYOR ATTEST: Christa Freemantle, CITY CLERK Resolution No Page 2 of

26 EXHIBIT 1

27 PROPERTY TAX EXCHANGE AGREEMENT BETWEEN THE SACRAMENTO METRO FIRE DISTRICT AND THE CITY OF FOLSOM RELATING TO THE FOLSOM PLAN AREA ANNEXATION This PROPERTY TAX EXCHANGE AGREEMENT (hereinafter "Agreement") is made and executed in duplicate this day of October, 2011, by and between the SACRAMENTO METRO FIRE DISTRICT, a (hereinafter referred to as "SMFD "), and the CITY OF FOLSOM, a California municipal corporation and charter city (hereinafter referred to as "CITY"). RECITALS A. On June 6, 1978, the voters of the State of California amended the California Constitution by adding Article XIIIA thereto which limited the total amount of property taxes which could be levied on property by local taxing agencies having such property within their territorial jurisdiction to one percent (I%) of full cash value; and B. Following such constitutional amendment, the California Legislature added Section 99 to the California Revenue and Taxation Code which requires a city seeking to annex property to its incorporated territory and an existing government entity, in this case SMFD, affected by such annexation to agree upon an exchange of property taxes which are derived from such property and available to the SMFD and CITY following annexation of the property to the incorporated territory of CITY; and C. CITY has filed an application with the Sacramento Local Agency Formation Commission ("LAFCO"), entitled "City of Folsom - Annexation of the Sphere of Influence South of Hwy 50 (LAFC 04-11)," requesting its approval of the annexation of approximately 3600 acres of real property to CITY, consisting generally of the area within the CITY's South of Highway 50 sphere of influence; and D. The Annexation Area is presently in SMFD service area and the CITY and SMFD agree that this service area will be detached upon approval of the South of Highway 50 Annexation by LAFCO and thereafter the CITY shall be the fire service provider; and E. SMFD and CITY wish to work together to develop a fair and equitable approach to the sharing of real property ad valorem taxes imposed and collected as authorized by the Revenue and Taxation Code in order to encourage sound urban development and economic growth, with the intent of the parties that SMFD shall continue to receive the same property tax revenue as it receives at the present time; and F. The purpose of this Agreement is to serve as a Property Tax Transfer Agreement pursuant to Section 99 of the California Revenue and Taxation Code for the Annexation Area. Page 1 of

28 SMFD and CITY hereby agree as follows: Section 1. Definitions. For purposes of this Agreement, the following terms shall have the meanings set forth below: (a) "Annexation Area" shall mean that portion of the unincorporated area of Sacramento County served by SMFD designated as the Folsom Plan Area, which includes the area within the sphere of influence of CITY, generally that area bounded by U.S. Highway 50 to the north, Prairie City Road to the west, White Rock Road to the south, and the Sacramento/Eldorado County boundary to the east. (b) "Annexation Date" shall mean the date specified by the Cortese-Knox- Hertzberg Local Governmental Reorganization Act of 2000 (California Government Code et seq.) as the effective date of the Annexation Area. (c) "South of Highway 50 Annexation" shall mean the annexation to the CITY of the Annexation Area as delineated in Sacramento Local Agency Formation Commission Application Control Number "LAFC 04-11", the annexation of which to CITY is subsequently approved and completed by the Sacramento Local Agency Formation Commission as provided in the Cortese-Knox-Hertzberg Local Governmental Reorganization Act of 2000 (California Government Code et seq.). (d) "Property Tax Revenue" shall mean revenue from "ad valorem real property taxes on real property", as said term is used in Section 1 of Article XIIIA of the California Constitution and more particularly defined in subsection (c) of Section 95 of the California Revenue and Taxation Code, that is collected from within the Annexation Area, and which is currently allocated to the SMFD general fund. Section 2. Purpose of Agreement. The purpose of this Agreement is to set forth the exchange of Property Tax Revenue between CITY and SMFD as allowed by Section 99 of the California Revenue and Taxation Code. Section 3. Exchange of Property Tax Revenues. On and after the Annexation Date, the SMFD and CITY shall exchange Property Tax Revenue as follows: (a) Commencing January 1, 2012 or the Annexation Date, whichever is later and continuing from year to year thereafter, the COUNTY and CITY shall exchange Property Tax Revenue as follows: (i). SMFD shall receive % of the Property Tax Revenue generated from Tax Rate Area and % of the Property Tax Revenue generated from Tax Rate Area , and (b) CITY shall receive any portion of the annual tax increment from the Annexation Area in excess of that amount owed to SMFD pursuant to this Agreement, if any, when and as such revenues are apportioned to jurisdictions in the tax rate area by the County Page 2 of 5

29 Auditor pursuant to Article 2 of Chapter 6 of Part 0.5 of Division 1 of the Revenue and Taxation Code, including Revenue and Taxation Code section Section 4. Exchange by County Auditor. SMFD and CITY agree that all of the exchanges of Property Tax Revenue required by this Agreement shall be made by the County Auditor. Section 5. Waiver of Retroactive Recovery. If the validity of this Agreement is challenged in any legal action brought by CITY or any third party, CITY hereby waives any right to the retroactive recovery of any City property tax revenues exchanged pursuant to this Agreement prior to the date on which such legal action is filed in a court of competent jurisdiction. The remedy available in any such action shall be limited to a prospective invalidation of the Agreement. Section 6. Mutual Defense of Agreement. If the validity of this Agreement is challenged in any legal action by a party other than SMFD or CITY, the parties agree to defend jointly against the legal challenge and to share equally any award of costs, including attorney's fees, against the parties or either of them. Section 7. Modification. The provisions of this Agreement and all of the covenants and conditions set forth herein may be modified or amended only by a writing duly authorized and executed by both the SMFD and CITY. Section 8. Reformation. SMFD and CITY understand and agree that this Agreement is based upon existing law, and that such law may be substantially amended in the future. In the event of an amendment of state law which renders this Agreement invalid or inoperable or which denies any party thereto the full benefit of this Agreement as set forth herein, in whole or in part, SMFD and CITY agree to renegotiate the Agreement in good faith. Section 9. Effect of Tax Exchange Agreement. This Agreement shall be applicable solely to the Annexation Area and does not constitute either a master tax sharing agreement or an agreement on property tax exchanges which may be required for any other annexation to the CITY. Section 10. Entire Agreement. With respect to the subject matter hereof only, this Agreement supersedes any and all previous negotiations, proposals, commitments, writings, and understandings of any nature whatsoever between SMFD and CITY except as otherwise provided herein. Section 11. Notices. All notices, requests, certifications or other correspondence required to be provided by the parties to this Agreement shall be in writing and shall be personally delivered or delivered by first class mail to the respective parties at the following addresses: Page 3 of

30 SMFD CITY President, Board of Directors City Manager Sacramento Metro Fire District City of Folsom 2101 Hurley Way 50 Natoma Street Sacramento, CA Folsom, CA Notice by personal delivery shall be effective immediately upon delivery. Notice by mail shall be effective upon receipt or three days after mailing, whichever is earlier. Section 12. Approval, Consent, and Agreement. Wherever this Agreement requires a party's approval, consent, or agreement, the party shall make its decision to give or withhold such approval, consent or agreement in good faith, and shall not withhold such approval, consent or agreement unreasonably or without good cause. Section 13. Construction of Captions. Captions of the sections of this Agreement are for convenience and reference only. The words in the captions in no way explain, modify, amplify, or interpret this Agreement. IN WITNESS WHEREOF, the parties hereto have executed this Agreement in the County of Sacramento, State of California, on the dates set forth above. SACRAMENTO METRO FIRE DISTRICT Date D'Elman Clark, President of the Board of Directors ATTEST: Date Charlotte Tilson, Board Clerk Page 4 of 5

31 CITY OF FOLSOM, A Municipal Corporation: Date Evert W. Palmer, City Manager APPROVED AS TO FORM: Date Bruce C. Cline, City Attorney ATTEST: Date Christa Freemantle, City Clerk Page 5 of

32 Attachment C

33 RESOLUTION NO A RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE AN AGREEMENT WITH THE EL DORADO HILLS FIRE DEPARTMENT REGARDING SERVICE LEVELS AND PROPERTY TAX EXCHANGE FOR THE FOLSOM PLAN AREA PROJECT AREA WHEREAS, Section 99 to the California Revenue and Taxation Code requires a city seeking to annex property to its incorporated territory and an existing government entity affected by such annexation to agree upon an exchange of property taxes which are derived from such property and available to the jurisdictions following annexation of the property to the incorporated territory of the city; WHEREAS, the City of Folsom has filed an application with the Sacramento Local Agency Formation Commission ("LAFCO"), entitled "City of Folsom - Annexation of the Sphere of Influence South of Hwy 50 (LAFC 04-11)," requesting its approval of the annexation of approximately 3600 acres of real property to the City of Folsom (Annexation Area); WHEREAS, the Annexation Area is currently within the service area for the El Dorado Hills Fire Department (EHFD) and the City of Folsom desires to be the fire service provider for this area; WHEREAS, a portion of the Annexation Area is within the EHFD's fire service boundary. LAFCO Resolution 1196 adopted on June 6, 2001 provided that the CITY would meet and confer with special districts including EHFD relating to providing service in the Annexation Area. Section 12 of Resolution 1196 further provides that the CITY will not seek detachment with respect to the El Dorado Irrigation District as a result of that agency's ERAF exemption and EHFD also has the same ERAF exemption, and detachment would have serious financial consequences that EHFD and the CITY wish to avoid; WHEREAS, EHFD and the City of Folsom desire to enter into a Property Tax Transfer Agreement pursuant to Section 99 of the California Revenue and Taxation Code for the Annexation Area; WHEREAS, EHFD and the City of Folsom have negotiated a fair and equitable approach to the sharing of real property ad valorem taxes imposed and collected as authorized by the Revenue and Taxation Code in order to provide that the EHFD service boundary will not be detached and that the EHFD will receive specified sums of property tax revenues and the City will be the fire service provider in the annexed area upon the effective date of the annexation; WHEREAS, the plan for fire service shall be consistent with the current level provided and as the area develops will exceed the current level of service currently provided; WHEREAS, the agreement will be in a form acceptable to the City Attorney and containing the substantive terms which are provided in the agreement attached to this Resolution as Exhibit 1: NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Folsom authorizes the City Manager to Execute a Property Tax Exchange Agreement with the El Dorado Hills Fire Department regarding Service Levels and Property Tax Exchange for the Folsom Plan Resolution No Page 1 of

34 Area Project Area in a form acceptable to the City Attorney and containing the substantive terms as provided in Exhibit 1 to this Resolution. vote: PASSED AND ADOPTED this 8th day of November 2011, by the following roll-call AYES: Council Member(s): NOES: Council Member(s): ABSENT: Council Member(s): ABSTAIN: Council Member(s): Andrew J. Morin, MAYOR ATTEST: Christa Freemantle, CITY CLERK Resolution No Page 2 of

35 EXHIBIT

36 MEMORANDUM OF UNDERSTANDING RELATING TO SHARING REAL PROPERTY TAX REVENUE BETWEEN THE EL DORADO HILLS COUNTY WATER DISTRICT (AKA THE EL DORADO HILLS FIRE DEPARMENT) AND THE CITY OF FOLSOM RELATING TO THE SOUTH OF HIGHWAY 50 FOLSOM PLAN AREA ANNEXATION This Memorandum of Understanding (hereinafter "MOU") is made and executed in duplicate this day of November, 2011 by and between the EL DORADO HILLS COUNTY WATER DISTRICT (AKA THE EL DORADO HILLS FIRE DEPARMENT), ( hereinafter referred to as "EL DORADO HILLS"), AND THE CITY OF FOLSOM, a charter city (hereinafter referred to as "CITY"). RECITALS A. On June 6, 1978, the voters of the State of California amended the California Constitution by adding Article XI 11A thereto which limited the total amount of property taxes which could be levied on property by local taxing agencies having such property within their territorial jurisdiction to one percent (1%) of full cash value; and B. Following such constitutional amendment, the California Legislature added Section 99 to the California Revenue and Taxation Code which requires a city seeking to annex property to its incorporated territory and a county affected by such annexation to agree upon an exchange of property taxes which are derived from such property and available to the county and city following annexation of the property to the incorporated territory of the city; and C. CITY has filed an application with the Sacramento Local Agency Formation Commission ("LAFCO"), entitled "City of Folsom Annexation - Annexation of the Sphere of Influence (LAFC-07-09)," requesting its approval of the annexation of approximately 3600 acres of real property to CITY, consisting generally of the area within the CITY's South of Highway 50 sphere of influence ("the Annexation Area"); and D. A portion of the Annexation Area is within EL DORADO HILLS's fire service boundary. LAFCO Resolution 1196 adopted on June 6, 2001 provided that the CITY would meet and confer with special districts including EL DORADO HILLS relating to providing service in the Annexation Area. Section 12 of Resolution 1196 further provides that the CITY will not seek detachment with respect to the El Dorado Irrigation District as a result of that agency's ERAF exemption. EL DORADO HILLS also has the same ERAF exemption, and detachment would have serious financial consequences that EL DORADO HILLS and the CITY wish to avoid. The CITY and EL DORADO HILLS have met and conferred as required and have reached an agreement Page 1 of 6

37 regarding the provision of fire service in the Annexation Area and related to that portion of Property Tax Revenue that will continue to be paid to EL DORADO after annexation. E.. The level of fire service to be provided to the Annexation Area shall be consistent with the current level of service or, as the area develops will exceed the level currently provided. EL DORADO HILLS and CITY hereby agree as follows: Section 1. Definitions. For purposes of this MOU, the following terms shall have the meanings set forth below: (a) "Annexation Area" shall mean that portion of the unincorporated area of Sacramento County designated as the South of Highway 50 sphere of influence of CITY, generally that area bounded by U.S. Highway 50 to the north, Prairie City Road to the west, White Rock Road to the south, and the Sacramento/El Dorado County boundary to the east as generally depicted on Exhibit 1 to this Memorandum of Understanding. (b) "Annexation Date" shall mean the date specified by the Cortese -Knox-Hertzberg Local Governmental Reorganization Act of 2000 (California Government Code et seq.) as the effective date of the Folsom Plan Area Specific Plan Annexation. (c) "Fire Service Area" shall mean that portion of the Annexation Area that is currently in EL DORADO HILLS ' s fire service boundary. (d) "Folsom Plan Area Annexation" shall mean the annexation to the CITY as delineated in Sacramento Local Agency Formation Commission Application Control Number "LAFC 07-09", the annexation of which to CITY is subsequently approved and completed by the Sacramento Local Agency Formation Commission as provided in the Cortese-Knox-Hertzberg Local Governmental Reorganization Act of 2000 (California Government Code et seq.). (e) "Property Tax Revenue" shall mean revenue from "ad valorem real property taxes on real property," as said term is used in Section 1 of Article 13A of the California Constitution and more particularly defined in subsection (c) of Section 95 of the California Constitution and Taxation Code, Annexation Area, that is collected from within the is available for allocation to the City and the County, and is currently allocated to the County General Fund, County Library Fund, Sacramento Metro Fire Protection District, County Road Fund, and El Dorado Hills Fire Protection District. Section 2. General Purpose of Memorandum of Understanding. The general purpose of this MOU is: (a) To define the share of Property Tax Revenue that EL DORADO HILLS will continue to receive after and; (b) To provide for services to be provided by the CITY and EL DORADO HILLS. Page 2 of

38 Section 3. Property Tax Distribution. EL DORADO HILLS and CITY agree that the distribution of Property Tax Revenue relating to the share that EL DORADO HILLS will continue to receive and the remaining portion that the CITY will receive is as follows: (a) EL DORADO HILLS shall maintain the same dollar amount of property taxes received in the fiscal year from tax rate area , with an annual adjustment equal to the County Assessor' s annual adjustment on property taxes in the Annexation Area. If there is a negative adjustment by the County Assessor, the amount received by EL DORADO HILLS will not be adjusted downward. If there is no adjustment by the County Assessor, the amount received by EL DORADO HILLS will not be adjusted. The County Assessor' s annual adjustment is based on the change in the Consumer Price Index, not to exceed an increase of 2%. ; and (b) The CITY shall receive the remaining Property Tax Revenue and any other tax revenues that are generated in the Annexation Area. Section 4. Provision of Service in the Annexation Area. The CITY will not seek detachment of the EL DORADO HILLS fire service boundary that is in the Annexation Area. EL DORADO HILLS and CITY agree that the CITY will be the fire service provider for all purposes in the Annexation Area. Both parties to the MOU recognize that there will be ongoing, mutual issues to address regarding the provision of fire service. EL DORADO HILLS and CITY agree to meet and confer and address service issues that might arise. Additionally the CITY and EL DORADO HILLS agree as follows: (a) CITY will provide pre-hospital emergency medical services (e.g., dispatch, first responder advanced life support, ground ambulance transport) within the Annexation Area, including those located within the service boundary area of EL DORADO HILLS. (b) CITY will provide hazardous material response and clean-up services within the Annexation Area, including those located within the service boundary area of EL DORADO HILLS. (c) CITY will provide emergency management services within the Annexation Area, including those located within the service boundary area of EL DORADO HILLS. (d) CITY will provide fire prevention services (e.g., plan check, fire code permit review, safety inspections, weed abatement) within the Annexation Area, including those located within the service boundary area of EL DORADO HILLS. (e) All revenue sources related to providing these services will be retained by CITY for the operation of its general fund, except as provided in this MOU. Section 5. Dispute Resolution. (a) Disputes Clause. Should any dispute arise as to the performance of or the interpretation of the provisions of this Memorandum of Understanding, EL Page 3 of 6

39 DORADO HILLS and CITY agree to the dispute resolution process as set forth below. (b) Initiation of the Dispute Resolution Process. EL DORADO HILLS or CITY may initiate the dispute resolution process by submitting written notification to the other of a dispute concerning the performance of or interpretation of this Memorandum of Understanding. The written notification shall be made no later than sixty (60) days of the date any Property Tax Revenue payment is made to either party pursuant to this Memorandum of Understanding or within sixty (60) days of any dispute arising. In no case shall a dispute relate to any fiscal year other than the fiscal year in which the notification is made This written notification shall include all supporting documentation, shall state what is in dispute, and shall request a meeting between the President of the Board of Directors and the City Manager or their respective designees. The purpose of this meeting shall be to ascertain whether a resolution of the disagreement is possible without third party intervention. This meeting shall be scheduled to take place within thirty (30) working days of receipt of the written notification of the dispute. At the meeting, the respective representatives of the EL DORADO HILLS and the CITY shall attempt to reach an equitable settlement of the disputed issues(s). (c) Binding Arbitration. If the meeting provided for in subsection (b) of this Section fails to fully resolve the disagreement, the matter shall then be submitted by either party to the American Arbitration Association ("Arbitrator") to appoint a single neutral arbitrator for a decision. The arbitration shall be conducted pursuant to the procedures set forth in Chapter 3 (commencing with Section 1282) of Title 9 of the California Code of Civil Procedure. The decision of the Arbitrator shall be controlling between the CITY and EL DORADO HILLS and shall be final. Except as provided in Code of Civil Procedure Sections and , neither party shall be entitled to judicial review of the Arbitrator's decision. The party against whom the award is rendered shall pay any monetary award and/or comply with any other order of the Arbitrator within sixty (60) days of the entry of judgment on the award. (d) Inadmissible Evidence - All conduct, testimony, statements or other evidence made or presented during the meeting described in subsection (b) above shall be confidential and inadmissible in any arbitration proceeding brought pursuant to dispute resolution process. (e) Costs. The parties shall share equally in the costs and fees associated with the Arbitrator's fees and expenses. At the conclusion of the arbitration, the prevailing party, as determined by the Arbitrator, shall be entitled to reimbursement by the other party for the Arbitrator's fees and the Arbitrator's expenses incurred in connection with the arbitration. The awarded arbitrator's fees and expenses shall be remitted to the party whose position is upheld within thirty (30) days of the Arbitrator's decision. Each party shall bear its own costs, expenses and attorney's fees and no party shall be Page 4 of

40 awarded its costs, expenses, or attorney's fees incurred in any phase of the dispute resolution process. Section 6. Mutual Defense of Memorandum of Understanding. If the validity of this Memorandum of Understanding is challenged in any legal action by a party other than EL DORADO HILLS or CITY, then EL DORADO HILLS and CITY agree to defend jointly against the legal challenge and CITY agrees to pay the cost to defend the legal challenge. Section 7. Termination and Amendments. This MOU and all of the covenants and conditions set forth herein may only be terminated or amended by a vote of the EL DORADO HILLS Board of Directors and the City Council for the CITY and a writing duly authorized and executed by both EL DORADO HILLS and CITY. Section 8. Reformation. EL DORADO HILLS and CITY understand and agree that this Memorandum of Understanding is based upon existing law, and that such law may be substantially amended in the future. In the event of an amendment of state law which renders this Memorandum of Understanding invalid or inoperable or which denies any party thereto the full benefit of this Memorandum of Understanding as set forth herein, in whole or in part, then EL DORADO HILLS and CITY agree to renegotiate the Memorandum of Understanding in good faith with the intent of reaching the tax sharing arrangement which as closely as possible approximates the arrangement set forth herein. Section 9. Entire Memorandum of Understanding. With respect to the subject matter hereof only, this Memorandum of Understanding supersedes any and all previous negotiations, proposals, commitments, writings, and understanding of any nature whatsoever between EL DORADO HILLS and CITY except as otherwise provided herein. Section 10. Notices. All notices, requests, certifications or other correspondence required to be provided by the parties to this Memorandum of Understanding shall be in writing and shall be personally delivered or delivered by first class mail to the respective parties at the following addresses: EL DORADO HILLS CITY President of the Board of Directors City Manager El Dorado Hills Fire Department City of Folsom 1050 Wilson Blvd 50 Natoma Street El Dorado Hills, CA Folsom, CA Notice by personal delivery shall be effective immediately upon delivery. Notice by mail shall be effective upon receipt or three days after mailing, whichever is earlier Page 5 of 6

41 Section 11. Construction of Captions. Captions of the sections of this Memorandum of Understanding are for convenience and reference only. The words in the captions in no way explain, modify, amplify, or interpret this Memorandum of Understanding. IN WITNESS WHEREOF, the parties hereto have caused this Memorandum of Understanding to be duly executed. Date Greg Durante, President of the Board of Directors APPROVED AS TO FORM: Date Michael Cook, Counsel for El Dorado Hills Fire Department CITY OF FOLSOM, A Municipal Corporation: Date Evert W. Palmer, City Manager ORIGINAL APPROVED AS TO FORM: Date Bruce C. Cline, City Attorney Page 6 of

42 Attachment D

43 RESOLUTION NO A RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE A TAX EXCHANGE AGREEMENT BETWEEN THE COUNTY OF SACRAMENTO AND THE CITY OF FOLSOM, RELATING TO THE SOUTH OF HIGHWAY 50 FOLSOM PLAN AREA ANNEXATION AND PROPERTY ADJACENT TO THE FOLSOM AUTO MALL WHEREAS, Section 99 to the California Revenue and Taxation Code requires a city seeking to annex property to its incorporated territory and an existing government entity affected by such annexation to agree upon an exchange of property taxes which are derived from such property and available to the jurisdictions following annexation of the property to the incorporated territory of the city; WHEREAS, the City of Folsom has filed an application with the Sacramento Local Agency Formation Commission ("LAFCO"), entitled "City of Folsom - Annexation of the Sphere of Influence South of Hwy 50 (LAFC )," requesting its approval of the annexation of approximately 3600 acres of real property to the City of Folsom (Annexation Area); WHEREAS, the Annexation Area is currently within the unincorporated area of Sacramento County and the City of Folsom desires to annex the Annexation Area into its city limits; WHEREAS, Sacramento County and the City of Folsom desire to enter into a Property Tax Transfer Agreement pursuant to Section 99 of the California Revenue and Taxation Code for the Annexation Area; WHEREAS, the Sacramento County and the City of Folsom have negotiated a fair and equitable approach to the sharing of real property ad valorem taxes imposed and collected as authorized by the Revenue and Taxation Code in order to provide for annexation and to encourage sound urban development and economic growth; WHEREAS, Sacramento County and the City of Folsom entered into a tax sharing agreement dated September 22, 1992 when the City annexed property for development of the Folsom Auto Mall located on Folsom Blvd. and the City and Sacramento County have agreed upon a fair and equitable tax sharing arrangement relating to automobile dealers developed on property in the unincorporated area of the County which is adjacent to the Folsom Auto Mall (Automobile Dealer Property); WHEREAS, Sacramento County and the City desire to enter into a tax sharing agreement which shall be approved by each jurisdiction and shall be in a form acceptable to the City Attorney and containing the substantive terms which are provided in the agreement attached to this Resolution as Exhibit 1: NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Folsom authorizes the City Manager to execute a Tax Exchange Agreement between the County of Sacramento and the City Of Folsom, relating to the South of Highway 50 Folsom Plan Area Annexation and Property adjacent to the Folsom Auto Mall. Resolution No Page 1 of

44 vote: PASSED AND ADOPTED this 8th day of November 2011, by the following roll-call AYES: NOES: ABSENT: ABSTAIN: Council Member(s): Council Member(s): Council Member(s): Council Member(s): Andrew J. Morin, MAYOR ATTEST: Christa Freemantle, CITY CLERK Resolution No Page 2 of

45 EXHIBIT

46 TAX EXCHANGE AGREEMENT BETWEEN THE COUNTY OF SACRAMENTO AND THE CITY OF FOLSOM, RELATING TO THE SOUTH OF HIGHWAY 50 FOLSOM PLAN AREA ANNEXATION AND PROPERTY ADJACENT TO THE FOLSOM AUTO MALL This TAX EXCHANGE AGREEMENT ( hereinafter "Agreement") is made and executed in duplicate this day of November, 2011 by and between the COUNTY OF SACRAMENTO, a political subdivision of the State of California (hereinafter referred to as "COUNTY"), AND THE CITY OF FOLSOM, a charter city (hereinafter referred to as "CITY"). RECITALS A. On June 6, 1978, the voters of the State of California amended the California Constitution by adding Article X I I I A thereto which limited the total amount of property taxes which could be levied on property by local taxing agencies having such property within their territorial jurisdiction to one percent (I%) of full cash value; and B. Following such constitutional amendment, the California Legislature added Section 99 to the California Revenue and Taxation Code which requires a city seeking to annex property to its incorporated territory and a county affected by such annexation to agree upon an exchange of property taxes which are derived from such property and available to the county and city following annexation of the property to the incorporated territory of the city; and C. CITY has filed an application with the Sacramento Local Agency Formation Commission ("LAFCO"), entitled "City of Folsom Annexation - Annexation of the Sphere of Influence (LAFC-07-09)," requesting its approval of the annexation of approximately 3600 acres of real property to CITY, consisting generally of the area within the CITY's South of Highway 50 sphere of influence ("the Annexation Area"); and D. COUNTY and CITY wish to work together to develop a fair and equitable approach to the sharing of real property ad valorem taxes imposed and collected as authorized by the Revenue and Taxation Code in order to encourage sound urban development and economic growth; and E. The COUNTY and CITY entered into a tax sharing agreement dated when the CITY annexed property for development of the Folsom Auto Mall located on Folsom Blvd. and the CITY and COUNTY wish to work together to develop a fair and equitable approach to automobile dealers developed in the COUNTY on property adjacent to the Folsom Auto Mall (Automobile Dealer Property); and F. One of the purposes of this Agreement is to provide for the fair distribution between the COUNTY and the CITY of revenue generated within areas annexed to the CITY; and Page 1 of

47 G. Another purpose of this Agreement is to specify how property tax and other revenue generated within the Annexation Area are to be shared; and H. It is a further purpose of this Agreement to serve as a Property Tax Transfer Agreement pursuant to Section 99 of the California Revenue and Taxation Code. 1. It is a further purpose of this Agreement to address the sharing of Sales Tax Revenue generated from the current automobile dealer and future automobile dealers located on property in Sacramento County adjacent to the Automobile Dealer Property. COUNTY and CITY hereby agree as follows: Section 1. Definitions. For purposes of this Agreement, the following terms shall have the meanings set forth below: (a) "Annexation Area" shall mean that portion of the unincorporated area of Sacramento County designated as the South of Highway 50 sphere of influence of CITY, generally that area bounded by U.S. Highway 50 to the north, Prairie City Road to the west, White Rock Road to the south, and the Sacramento/El Dorado County boundary to the east as generally depicted on Exhibit 1 to this Agreement. (b) "Annexation Date" shall mean the date specified by the Cortese-Knox-Hertzberg Local Governmental Reorganization Act of 2000 (California Government Code et seq.) as the effective date of the Folsom Plan Area Annexation. (c) "Automobile Dealer Property" shall mean that property fronting or which directly accesses Folsom Blvd. and is located within one half (1/2) mile of a property line of an automobile dealer located in the Folsom Auto Mall. (d) "Big Box Retail Establishment" shall mean a retail establishment of greater than 75,000 square feet of permanent floor area that is available to generate sales, transactions or use tax revenue. (e) "Folsom Auto Mall" shall mean that property annexed to the City of Folsom by LAFCO action and as depicted in Exhibit 2. (f) "Folsom Plan Area Annexation" shall mean the annexation to the CITY as delineated in Sacramento Local Agency Formation Commission Application Control Number "LAFC 07-09", the annexation of which to CITY is subsequently approved and completed by the Sacramento Local Agency Formation Commission as provided in the Cortese-Knox- Hertzberg Local Governmental Reorganization Act of 2000 (California Government Code et seq.). (g) "General Fund Operations Costs" shall mean those expenditures by the City which are funded out of the City's General Fund. (h) "Property Tax Revenue" shall mean revenue from "ad valorem real property taxes on real property," as said term is used in Section 1 of Article 13A of the California Constitution and more particularly defined in subsection (c) of Section 95 of the California Constitution and Taxation Code, that is collected from within the Annexation Page 2 of

48 Area, is available for allocation to the City and the County, and is currently allocated to the County General Fund, County Library Fund, Sacramento Metro Fire Protection District, County Road Fund, and El Dorado Hills Fire Protection District. (i) "Sales Tax Revenue" shall mean the revenue from the sales, transactions and use taxes levied and received by the CITY that are generated at a point of sale within the Annexation Area. (j) "Single Purpose/Regional Tax Generating Land Use" shall mean hotels, motels, auto dealers, and Big Box Retail Establishments. The following land uses shall be conclusively presumed not to be a Single Purpose/Regional Tax Generating Land Use: gas stations, restaurants, grocery stores and retail stores not meeting the definition of Big Box Retail Establishments, and, with the exception of Big Box Establishments, those commercial land uses under the Regional Commercial land use category as authorized by the Folsom Plan Area Specific Plan approved by the City Council on June 28, (k) "Transient Occupancy Tax Revenue" shall mean the CITY general fund share of revenue from any transient occupancy tax levied and received by the CITY pursuant to Revenue and Taxation Code Section 7280, or any successor statutory provision, that is generated within the Annexation Area. Section 2. General Purpose of Agreement. The general purpose of this Agreement is: (a) To devise an equitable exchange of Property Tax Revenue between CITY and COUNTY as required by Section 99 of the California Revenue and Taxation Code and; (b) To fairly allocate Sales Tax and Transient Occupancy Tax Revenue collected within the Annexation Area. (c) To fairly allocate Sales Tax Revenue generated from automobile sales from Automobile Dealer Property in the same manner as Sales Tax Revenue is currently shared generated from the Folsom Auto Mall. Section 3. General Model of Distribution. COUNTY and CITY agree that the general model used in developing the distribution of revenues, in line with Section 2 of this Agreement, is as follows: (a) A 50%/50% split, between the COUNTY and CITY, of Property Tax, Transient Occupancy Tax Revenue and Sales Tax Revenue generated from Single Purpose/ Regional Tax Generating Land Uses; and (b) A 50%/50% split, between the COUNTY and CITY, of net revenues after City General Fund Operations costs, with net revenues defined as total Property Tax Revenue, Sales Tax Revenue and Transient Occupancy Tax Revenue generated in the Annexation Area minus the Sales Tax Revenue from Single Purpose/Regional Tax Generating Land Uses shared in (a) above and minus CITY General Fund Operations Costs in the Annexation Area. Page

49 Section 4. Exchange of Property Tax Revenues. Commencing January 1, 2012 or the Annexation Date, whichever is later and continuing from year to year thereafter, the COUNTY and CITY shall exchange Property Tax Revenue as follows: (a) COUNTY shall receive % of the Property Tax Revenue to be collected in the Annexation Area prior to their appropriate Education Revenue Augmentation Fund (ERAF) payment. (b) CITY shall receive % of the Property Tax Revenue to be collected in the Annexation Area prior to their appropriate Education Revenue Augmentation Fund (ERAF) payment. (c) The Property Tax Revenue available to be allocated to the COUNTY and CITY after their respective ERAF payments have been made shall be combined and COUNTY shall receive % and CITY shall receive % of the combined amount. Section 5. Sharin2 of Sales Tax and Transient-Occupancy Tax Revenues. Commencing on January 1, 2012 or the Annexation Date, whichever is later and continuing from year to year thereafter, the COUNTY and CITY shall exchange Sales Tax and Transient Occupancy Tax Revenue as follows: (a) COUNTY shall receive % of the Sales Tax Revenue and Transient Occupancy Tax to be allocated to its General Fund. (b) CITY shall receive % of the Sales Tax Revenue and Transient Occupancy Tax to be allocated to its General Fund. Section 6. Allocation of Sales Tax Revenue from Automobile Dealer Property. Commencing at the same time as other tax revenue sharing commences in this Agreement, the CITY shall receive fifty (50%) percent of the COUNTY's share of Sales Tax Revenue generated from retail sales of automobiles and automobile related products and services generated from the Automobile Dealer Property. Section 7. Allocation of Tax Shares. COUNTY and CITY agree that the allocations indicated in Sections 4 and 5 of this Agreement were based on the analysis described and presented in Exhibit 3 to this Agreement and that the intent of these allocations is to reflect that analysis and the purposes described in Sections 2 and 3 of this Agreement. Section 8. Allocation to Other Public Entities. The COUNTY distributes Property Tax Revenue to public entities listed in Exhibit 3 and the allocated one set forth therein. The City has reached agreements with each of these entities and the share of Property Tax Revenue to be paid to each of them is set forth in Exhibit 3 to this Agreement. Section 9. Exchan2e by County Auditor. COUNTY and CITY further agree that all of the exchanges of Property Tax and Sales Tax Revenue required by this Agreement shall be made by the County Auditor. Page 4 of

50 Section 10. Exchange of Transient Occupancy Tax. COUNTY and CITY agree that upon receipt of the Transient Occupancy Tax by the CITY, the CITY shall remit to the COUNTY its share, as indicated in Section 5 of this Agreement, within thirty (30) calendar days of receipt. Section 11. Dispute Resolution. (a) Disputes Clause. Except as provided in Section 13 below, should any dispute arise as to the performance of or the interpretation of the provisions of this Agreement, COUNTY and CITY agree to the dispute resolution process as set forth below. (b) Initiation of the Dispute Resolution Process. COUNTY or CITY may initiate the dispute resolution process by submitting written notification to the other of a dispute concerning the performance of or interpretation of this Agreement. The written notification shall be made no later than sixty (60) days of the date any payment is made to either party pursuant to this Agreement. In no case shall a dispute relate to any fiscal year other than the fiscal year in which the notification is made This written notification shall include all supporting documentation, shall state what is in dispute, and shall request a meeting between the County Executive and the City Manager or their respective designees. The purpose of this meeting shall be to ascertain whether a resolution of the disagreement is possible without third party intervention. This meeting shall be scheduled to take place within thirty (30) working days of receipt of the written notification of the dispute. At the meeting, the respective representatives of the COUNTY and the CITY shall attempt to reach an equitable settlement of the disputed issues(s). (c) Binding Arbitration. If the meeting provided for in subsection (b) of this Section fails to fully resolve the disagreement, the matter shall then be submitted by either party to the American Arbitration Association ("Arbitrator") to appoint a single neutral arbitrator for a decision. The arbitration shall be conducted pursuant to the procedures set forth in Chapter 3 (commencing with Section 1282) of Title 9 of the California Code of Civil Procedure. The decision of the Arbitrator shall be controlling between the CITY and the COUNTY and shall be final. Except as provided in Code of Civil Procedure Sections and , neither party shall be entitled to judicial review of the Arbitrator's decision. The party against whom the award is rendered shall pay any monetary award and/or comply with any other order of the Arbitrator within sixty (60) days of the entry of judgment on the award. (d) Inadmissible Evidence - All conduct, testimony, statements or other evidence made or presented during the meeting described in subsection (b) above shall be confidential and inadmissible in any arbitration proceeding brought pursuant to dispute resolution process. (e) Costs. The parties shall share equally in the costs and fees associated with the Arbitrator's fees and expenses. At the conclusion of the arbitration, the prevailing party, as determined by the Arbitrator, shall be entitled to reimbursement by the other party for the Arbitrator's fees and the Arbitrator's expenses incurred in connection with the arbitration. The awarded arbitrator's fees and expenses shall be remitted to the party whose position is upheld within thirty (30) days of the Arbitrator's decision. Each party Page 5 of

51 Section 12. shall bear its own costs, expenses and attorney' s fees and no party shall be awarded its costs, expenses, or attorney's fees incurred in any phase of the dispute resolution process. Mutual Defense of Agreement. If the validity of this Agreement is challenged in any legal action by a party other than COUNTY or CITY, then COUNTY and CITY agree to defend jointly against the legal challenge and to share equally any award of costs, including attorneys' fees, against COUNTY, CITY, or both. Section 13. Waiver of Retroactive Recovery. If the validity of this agreement is challenged in any legal action brought by either COUNTY, CITY, or any third party, COUNTY and CITY hereby waive any right to the retroactive recovery of any County or City Tax Revenues exchanged pursuant to this Agreement prior to the date on which such legal action is filed in a court of competent jurisdiction. The remedy available in any such legal action shall be limited to a prospective invalidation of the Agreement. Section 14. Modification. This Agreement and all of the covenants and conditions set forth herein may be modified or amended only by a writing duly authorized and executed by both the COUNTY and CITY. Section 15. Reformation. COUNTY and CITY understand and agree that this Agreement is based upon existing law, and that such law may be substantially amended in the future. In the event of an amendment of state law which renders this Agreement invalid or inoperable or which denies any party thereto the full benefit of this Agreement as set forth herein, in whole or in part, then COUNTY and CITY agree to renegotiate the Agreement in good faith with the intent of reaching the tax sharing arrangement which as closely as possible approximates the arrangement set forth herein. Section 16. Effect of Tax Exchange Agreement. This Agreement shall be applicable solely to the Folsom Plan Area Annexation and does not constitute either a master tax sharing agreement or an agreement on property tax exchanges which may be required for any other annexation to the CITY, nor does it alter or enlarge any other revenue sharing obligations of the City. Section 17. Entire Agreement. With respect to the subject matter hereof only, this Agreement supersedes any and all previous negotiations, proposals, commitments, writings, and understanding of any nature whatsoever between COUNTY and CITY except as otherwise provided herein. Section 18. Notices. All notices, requests, certifications or other correspondence required to be provided by the parties to this Agreement shall be in writing and shall be personally delivered or delivered by first class mail to the respective parties at the following addresses: Page 6 of

52 COUNTY CITY County Executive City Manager County of Sacramento City of Folsom 700 H Street, Room Natoma Street Sacramento, CA Folsom, CA Notice by personal delivery shall be effective immediately upon delivery. Notice by mail shall be effective upon receipt or three days after mailing, whichever is earlier. Section 19. Approval, Consent, and Agreement. Wherever this Agreement requires a party's approval, consent, or agreement, the party shall make its decision to give or withhold such approval, consent or agreement in good faith, and shall not withhold such approval, consent or agreement unreasonably or without good cause. Section 20. Construction of Captions. Captions of the sections of this Agreement are for convenience and reference only. The words in the captions in no way explain, modify, amplify, or interpret this Agreement. Page 7 of

53 EXHIBIT I Map and Legal Description of the Folsom Plan Area

54

55 LAND USE LAND USE LEGEND Single Fwnly : 1.4 dwac Single, Family High Density : 4.7 du/ac Muld-F.ndy Low Dan.lty: 7.12 du/ac Multl-Famiy M.dum Density: du/ac Multifamily Kith Dan*": du/ac Mixed U du/ac Indusbisi/ONfce Pads II Commnay Coin m e d General Camird.l Regional Camm.rdsi Pads. (Cmnmurdy. Neighborhood. Local) Open Spew Public/Quasi-Public Specilfie Pion Boundary Pascal 11, 'my Pow. In. Easement ROW Rr..gtlon (canwptwl beatlon) Poiw Subsatlan (ooncs$usi location) Municipal Srviws Carter jeonceptuml lows-) Water Public Facility (conceptual location) LAND USE SUMMARY. Land Use 6SM Tot DU SF , % SFHD , % MLD , % MMD , % MHD , % MU % INDIOP % CC % GC % RC % Park % OS 1, % School % RW % TOTAL: 3, ,210 1 Notes: 1) Public facilities and municipal semoas will be located and shad per Fadtltl.s Analysis. 2) Water Public Fadllly, is a piawhddr sub)ed to negodatlons with landowners and 9nal tednlwl studies. Figure 4.1 Land Use Plan FOLSOM PLAN AREA SPECIFIC PLAN Public Review Draft - January 2011

56 Folsom CA, SOI Tax Rate Areas Summer 2011

57 EXHIBIT A ANNEXATION EXHIBIT FOLSOM SOI TERRITORY RELATION MAP OUNTY OF SACRAMENTO. STATE OF CALIFORNIA mackay & soms ENGINEERS PLANNERS SURVEYORS 1552 Eureka Road. Suite 100. Roseville. CA (916) I.-11XU 1Q2IO2 derv /q BaVA _AA g P %MfVV ur.7-iklwraptslgvafw SQM AMEX-81crdp xx I 1 = WK04/11/ DRAWN BY I SCALE I DATE I JOB NO

58 JURISDICTIONAL BOUNDARY ADJUSTMENT Geographic Description LEGAL DESCRIPTION EXHIBIT "A" Description of Property Transfered from Sacramento County to City of Folsom All that real property situated in the County of Sacramento, State of California being a portion of Sections 7, 8, 9, 10, 15, 16, 17, 19, 20, 21, and 22, Township 9 North, Range 8 East, mount Diablo Meridian together with those portions of projected Sections 12, 13 and 24, Township 9 North, Range 7 East, Rancho Rio de los Americans, together with a portion of Section 13, Township 9 North, Range 7 East, Mount Diablo Meridian, more particularly described as follows: Beginning at a point on the County line between Sacramento and El Dorado Counties at the intersection of the southeast corner of the Russell Ranch / East Folsom Annexation to the City of Folsom and US Highway 50; thence from said True Point of Beginning 1. South 18 10'56" East along the County line between Sacramento and El Dorado Counties a distance of 5,813 feet, more or less to its intersection with the centerline of White Rock Road; thence southwesterly following the centerline of White Rock Road the following 61 courses: 2. South 26 14'23" West a distance of feet; 3. thence South 37 35'23" West a distance of feet; 4. thence in a southwesterly direction with a tangent curve turning to the right with a radius of feet, having a chord bearing of South 55 12'23" West and a chord distance of , having a central angle of 35 14'00" and an arc length of '; 5. thence South 72 49'23" West a distance of feet; 6. thence in a westerly direction with a tangent curve turning to the right with a radius of feet, having a chord bearing of South " West and a chord distance of , having a central angle of 25 30'00" and an arc length of '; 7. thence North 81 40'37" West a distance of feet; 8. thence in a westerly direction with a tangent curve turning to the left with a radius of feet, having a chord bearing of South 85 40'23" West and a chord distance of , having a central angle of 25 18'00" and an arc length of '; 9. thence South 73 01'23" West a distance of feet; 10. thence South 82 01' 19" West a distance of feet; 11. thence South 70 41'30" West a distance of feet; 12. thence South 70 25'17" West a distance of feet; 13. thence South 70 30'31" West a distance of feet; 14. thence South 70 42'04" West a distance of feet; 15. thence South 71 46'23" West a distance of feet; 16. thence South 71 54'29" West a distance of feet; 17. thence South 72 14'05" West a distance of feet; 18. thence South 72 05'04" West a distance of feet;

59 JURISDICTIONAL BOUNDARY ADJUSTMENT Geographic Description 19. thence South 71 38'38" West a distance of feet; 20. thence South 71 25'51 " West a distance of feet; 21. thence South 71 29'13 " West a distance of feet; 22. thence South 72 24'58" West a distance of feet; 23. thence South 72 23'27" West a distance of feet; 24. thence South 73 17'40" West a distance of feet; 25. thence South 73 37'46" West a distance of feet; 26. thence South 74 28'00" West a distance of feet; 27. thence South 74'1 T37" West a distance of feet; 28. thence South 74 42'37" West a distance of feet; 29. thence South 74 38'34" West a distance of feet; 30. thence South 74 35'53" West a distance of feet; 31. thence South 74 41'47" West a distance of feet; 32. thence South 74 40'15" West a distance of feet; 33. thence South 74 35'52" West a distance of feet; 34. thence South 74 08'46" West a distance of feet; 35. thence South " West a distance of feet; 36. thence South 74 25'26" West a distance of feet; 37. thence South 74 12'47" West a distance of feet; 38. thence South 74 21'04" West a distance of feet; 39. thence South 74 29'29" West a distance of feet; 40. thence South 75 02'07" West a distance of feet; 41. thence South 75 21'03" West a distance of feet; 42. thence in a southwesterly direction with a non-tangent curve turning to the left with a radius of feet, having a chord bearing of South 67 42'33" West and a chord distance of , having a central angle of 13 52'44" and an arc length of 170.0l'; 43. thence South 59 37'38" West a distance of feet; 44. thence South 59 24'23" West a distance of feet; 45. thence in a southwesterly direction with a non-tangent curve turning to the right with a radius of feet, having a chord bearing of South 66 19'24" West and a chord distance of , having a central angle of 11 49'05" and an arc length of '; 46. thence in a westerly direction with a non-tangent curve turning to the right with a radius of feet, having a chord bearing of South 74 01'39" West and a chord distance of , having a central angle of 11 43'44" and an arc length of '; 47. thence South 79 45'20" West a distance of feet; 48. thence South 80 14'28" West a distance of feet; 49. thence South 80 26'49" West a distance of feet; 50. thence South 80 18'14" West a distance of feet; 51. thence South 80 20'21 " West a distance of feet; 52. thence South 80 3 I' 16" West a distance of feet; 53. thence in a westerly direction with a non-tangent curve turning to the right with a radius of feet, having a chord bearing of South 84 24'18" West and a

60 JURISDICTIONAL BOUNDARY ADJUSTMENT Geographic Description chord distance of , having a central angle of 07 50'30" and an arc length of '; 54. thence South 88 19'33" West a distance of feet; 55. thence South 87 02'10" West a distance of feet; 56. thence South 84 59'49" West a distance of feet; 57. thence South 81 54'06" West a distance of feet; 58. thence South 76 26'10" West a distance of feet; 59. thence South 75 10'30" West a distance of feet; 60. thence South 71'29'19" West a distance of feet; 61. thence South 70 01'10" West a distance of feet; 62. thence South 55 07'50" West a distance of feet to the intersection with the centerline of Prairie City Road; thence northwesterly along the centerline of Prairie City Road the following 14 courses: 63. North 00 37'19" West a distance of feet; 64. thence North 00 08'49" West a distance of feet; 65. thence North 00 08'49" West a distance of feet; 66. thence in a northerly direction with a tangent curve turning to the left with a radius of feet, having a chord bearing of North " West and a chord distance of 93.25, having a central angle of 26 57'40" and an arc length of 94.11'; 67. thence North 27 06'29" West a distance of feet; 68. thence in a northwesterly direction with a tangent curve turning to the left with a radius of feet, having a chord bearing of North 43 26'02" West and a chord distance of , having a central angle of 32 39'04" and an arc length of '; 69. thence North 59 45'34" West a distance of feet; 70. thence in a northwesterly direction with a tangent curve turning to the right with a radius of feet, having a chord bearing of North 53 34'56" West and a chord distance of , having a central angle of 12 21'15" and an arc length of '; 71. thence North 47 24'19" West a distance of feet; 72. thence in a northwesterly direction with a tangent curve turning to the right with a radius of feet, having a chord bearing of North 38 12'54" West and a chord distance of , having a central angle of 18 22'49" and an arc length of '; 73. thence North 29 01'29" West a distance of feet; 74. thence in a northerly direction with a tangent curve turning to the right with a radius of feet, having a chord bearing of North 17 07'01 " West and a chord distance of , having a central angle of 23 48'57" and an arc length of '; 75. thence North 05 52'42" West a distance of feet; 76. thence North 10 47'36" West a distance of feet; 77. thence North 14 17'28" West a distance of feet 78. thence North 01 43'36" West a distance of feet;

61 JURISDICTIONAL BOUNDARY ADJUSTMENT Geographic Description 79. thence North 33'20'04" West a distance of feet; to the intersection with the southerly line of the Prairie City Annexation to the City of Folsom; thence easterly along said southerly line the following 6 courses: 80. North 53'52'03" East a distance of feet; 81. thence South 48'17'08" East a distance of feet; 82. thence South 28'5945" East a distance of feet; 83. thence South 7 1'10'59" East a distance of feet; 84. thence South 81'00'26" East a distance of feet; 85. thence South 89'48'17" East a distance of feet to a point on the southerly line of the Russell Ranch / East Folsom Annexation; thence along the southerly line of the Russell Ranch / East Folsom Annexation the following 6 courses: 86. South 89'00'41 " East a distance of feet; 87. thence South 00'53'55" East a distance of feet; 88. thence in a easterly direction with a non-tangent curve tuming4o the left with a radius of feet, having a chord bearing of North 88'08'48" East and a chord distance of , having a central angle of 03'55'09" and an are length of '; 89. thence North 86'1 I'l 3 " East a distance of feet; 90. thence in a easterly direction with a tangent curve turning to the left with a radius of feet, having a chord bearing of North 76'17'59" Ea-It and a chord distance of , having a central angle of 19'46'28" and an arc length of '; 91. thence North 66'24'46" East a distance of feet; to the point of beginning Containing 3676 acres, more or less. End of Description Description prepared by: MACKAY & SOMPS CIVIL ENGINEERS, INC Eureka Road, Suite 100, Roseville, CA David W Kopp, PLS 4533 License Expiration Date: Date:

62 EXHIBIT 2 Auto Mall Area

63 {I) _L-, C) FYI Property Tax Agreement Sacramento County and City of Folsom ,000 Feet J- 2,