ITEM:		ACTION ITEM
12.	CONSIDER APPROVAL OF RESOLUTION NO. 2021-02 FOR THE ADOPTION OF A PROPERTY TAX TRANSFER AGREEMENT
Meeting Date:			March 15, 2021	Budgeted:	No
From:			David J. Stoldt	Program/
			General Manager	Line Item No.:	35-03-786010
			David J. Stoldt	Cost Estimate:	None
General Counsel Approval: N/A
Committee Recommendation: N/A
CEQA Compliance: Action does not constitute a project as defined by the California Environmental Quality Act Guidelines section 15378.

SUMMARY:  The Monterey Local Agency Formation Commission (LAFCO) has received a from the District its 2021 Sphere of Influence, Annexation, and Latent Power Activation Proposal. A Recommended zero property tax transfer must be approved prior to LAFCO determining the application complete. The District first adopts a resolution in the form attached as Exhibit 12-A and then the County must also do so. Also attached is a description of the affected parcels for annexation (Exhibit 12-B).

RECOMMENDATION:  It is recommended that the Board adopt Resolution 2021-02 to approve a zero property tax transfer for the District’s 2021 Sphere of Influence, Annexation, and Latent Power Activation Proposal.

DISCUSSION: Section 102 of the District Law established its territorial boundaries. The District’s boundaries were thought to contain all of Cal-Am’s Main System, as well as its Ryan Ranch, Bishop, and Hidden Hills systems. Instead, several parcels near Yankee Point to the south are within Cal-Am’s Main System and several parcels east of Laureles Grade are within Cal-Am’s Hidden Hills system, but in both cases not within the District’s boundary. In order for the District to acquire the distribution network serving the parcels and to provide the retail water service, pursuant to Measure J, it is desirable by the District to annex them into its jurisdiction. The parcels are summarized below and are described in detail in Exhibit 12-B.

Summary of Parcels for Annexation

Location	Parcels	Use of Property
Yankee Point	38	33 Single Family, 1 Garage, 4 Vacant Lot
Hidden Hills	20	8 Single Family, 1 Mobile Home, 11 Vacant Lot
Total	58

Revenue and Taxation Code Section 99 requires a county Board of Supervisors to determine an appropriate tax transfer for all jurisdictional changes of organizations within the County which could affect the service responsibility of any special district. Pursuant to Revenue and Taxation Code Section 99(b)(6) the Executive Officer of LAFCO shall not issue a Certificate of Filing (Government Code Section 56828) for a change of organization until an exchange of property tax revenue is negotiated.

On April 29, 1980 the Monterey County Board of Supervisors approved and adopted a formula and policies for determining property tax transfer resulting from jurisdictional changes involving special districts (Resolution No. 80-249). These policies provide that no property tax transfers are to occur for annexations to service and utility-type districts such as the Monterey Peninsula Water Management District.

EXHIBITS

12-A Resolution No. 2021-02

12-B Maps of Parcels for Annexation

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