REPORT TO THE CITY COUNCIL December 12, 2019 FROM: SCOTT L. MOZIER, P.E., Director Public Works Department MICHAEL CARBAJAL, Director Department of Public Utilities SUBJECT ..Title Actions pertaining to Darling Ingredients relocation to Wastewater Treatment Facility (District 3): 1. Approve Jensen Road Transfer Agreement between the City and County of Fresno related to the transfer of ownership and maintenance of Jensen Avenue right of way to the City between South Chateau Fresno and approximately 660 feet west of South Fig Avenue, and payment of certain property taxes to City. 2. Approve Amendment to City of Fresno Tax Rebate Agreement between the City of Fresno and Darling Ingredients, Inc. 3. ***RESOLUTION - Authorizing the City Manager to grant an easement to Darling Ingredients, Inc., for fire access between the Wastewater Treatment Plant and the new Darling Rendering Plant (Subject to Mayor's Veto) ..Body RECOMMENDATIONS Staff recommends the Council approve a Jensen Avenue road transfer agreement between the City and County of Fresno, an amendment to the City of Fresno Tax Rebate Agreement between the City and Darling Ingredients, and adopt a resolution authorizing the City Manager to grant an easement to Darling Ingredients, Inc., for fire access between the Wastewater Treatment Plant and the new Darling Rendering Plant. EXECUTIVE SUMMARY On August 22, 2019, the Council adopted Ordinance 2019-022, approving the Disposition and Development Agreement between the City of Fresno and Darling Ingredients, Inc., pertaining to relocation, and the transfer and development of real property to the southwest of the intersection of Jensen and Cornelia Avenues. On September 19, 2019, the Council also approved a tax rebate agreement with Darling. Since the time of these two actions by the Council, it has been determined that three additional actions will be necessary for the Darling relocation project. The Jensen Avenue Road Transfer Agreement will provide for the payment by the County to the City of the County's share of ad valorem real and personal property taxes paid for the Darling Parcel over a ten year period, and will also transfer the road maintenance responsibility to the City for all County-maintained segments of Jensen Avenue between Chateau Fresno and 660 west of South Fig Avenue. The tax rebate agreement between the City and Darling will be amended to rebate to Darling the dollars received by City from the County's share of the real and personal property taxes paid for the Darling Parcel. Lastly, staff recommends approval a resolution authorizing the City Manager to grant an easement to Darling for fire access through the Wastewater Treatment Plant, in order that Darling will have a secondary access for emergency purposes; the primary access will remain on Jensen Avenue. BACKGROUND The agreement, amendment and resolution have been reviewed and approved as to form by the City Attorney's Office. ENVIRONMENTAL FINDINGS This approval is not a project for the purposes of CEQA Guidelines Section 15378. LOCAL PREFERENCE Local preference was not considered because the recommended actions do not include a bid or award of a construction or service contract. FISCAL IMPACT Approval of the agreement with the County and amended tax rebate agreement with Darling Ingredients, Inc., will be revenue neutral for the General Fund. Future maintenance of Jensen Avenue road segments being transferred to the City from the County will be funded through Measure "C" and grants received through Federal and State programs. Attachments: Jensen Avenue Road Transfer Agreement Amendment to City of Fresno Tax Rebate Agreement Resolution