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HomeMy WebLinkAbout65F - ANNEX TUSTIN AND 17TH ST ISLANDREQUEST FOR COUNCIL ACTION Wi&W6161>� k[dIfiI4=1iI.[rlJ_111 111=9 JUNE 5, 2018 TITLE: DIRECT STAFF TO INITIATE THE PROCESS TO ANNEX THE 17TH STREET AND TUSTIN AVE. COUNTY OF ORANGE UNINCORPORATED ISLAND {STRATEGIC PLAN NO. 3, 5A} A r- I CI Y MANAGER RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: APPROVED ❑ As Recommended ❑ As Amended ❑ Ordinance on 111 Reading ❑ Ordinance on 2nd Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO FILE NUMBER Direct staff to initiate the process to annex the 17th Street and Tustin Ave. County of Orange unincorporated island, and continue discussions with the County and Orange County Local Agency Formation Commission regarding annexation. ECONOMIC DEVELOPMENT, INFRASTRUCTURE, BUDGET AND TECHNOLOGY COUNCIL At the May 14, 2018, Economic Development, Infrastructure, Budget and Technology Council Committee, the Committee recommended that Staff bring for full City Council consideration the annexation of the 17th Street and Tustin Avenue County of Orange unincorporated island. Furthermore, the Committee recommended that the City of Santa Ana be the entity to initiate the annexation application process with the Orange County Local Agency Formation Commission. DISCUSSION The City of Santa Ana received a request by the County of Orange Planning Department to provide sewer connection and sewer related services for a proposed development on County of Orange unincorporated vacant land located on the north-east corner of 17th Street and Tustin Avenue. The development site sits on a 3.3 -acre vacant plot of land owned by the John C. Hall Family Trust. Current development interest in this site includes an In -N -Out Burger and Chick -fill - A. In order to provide utility services to unincorporated island customers, the City must receive approval from the Local Agency Formation Commission (LAFCO) given that these customers reside outside of the municipality's respective City limits. As such, City of Santa Ana Staff contacted LAFCO to secure approval to serve outside the City's boundaries and were informed that LAFCO may only authorize the City to provide sewer services to the proposed development site, in anticipation of a change of organization or reorganization 65F-1 Direct staff to initiate process to annex 17th Street and Tustin Avenue County of Orange Unincorporated_Island June 5, 2018 Page 2 (i.e. annexation). The 3.3 -acre proposed development site is part of a much larger 24.71 -acre County of Orange unincorporated island (Island). The Island is bound by Seventeenth Street to the south, Tustin Avenue to the west and 55 Newport Freeway to the east (Island is shown on Exhibit 1). The existing land uses within the Island include an estimated 49 single-family dwellings, 32 multifamily dwellings, and a strip commercial center. Estimated population of the Island is 275. Water utility services are currently provided by the City of Tustin and a number of dwellings utilize septic tanks. Furthermore, the Island is considered an "unincorporated small island" under California Government Code Section 56375.3 and Orange County Local Agency Formation Commission (OCLAFCO) "Policy and Procedural Guidelines for Addressing Unincorporated Small Islands." Annexation of a County unincorporated island may be initiated by a municipality, agency, landowner or by registered voter. If the process is initiated by a municipality, there are benefits that may provide for a more favorable outcome such as: • OCLAFCO processing fees are waived (exception - State Board of Equalization fees) • Ability to negotiate Property Tax Exchange Agreement with the County • Negotiate cost recovery for the provision of City services (County, Owner/Developer) • Negotiate cost recovery for infrastructure improvements (County, Owner/Developer) • Resident/community protest is waived According to OCLAFCO, the 17th Street and Tustin Avenue Island is within the City of Santa Ana's "sphere of influence" and therefore the City is identified as the logical municipal service provider. Annexation Process and Proposed Schedule Due to the small size of the Island, the process to annex the Island is largely administrative. If the City Council approves moving forward with the annexation via a resolution at a future date, the City will submit a Project Application Form (Application) to LAFCO to annex the Island (Exhibit 2). Once the Application and supporting documents (City Resolution, Annexation and Cooperative Agreement, Plan of Services, Property Tax Exchange Agreement, etc.) are reviewed and deemed complete, LAFCO will set a public hearing date. A public hearing will take place and, in accordance with State law regarding small island annexations, LAFCO shall approve the action. The entire process, from initiating the annexation process to LAFCO's final action, is expected to take approximately eight (8) to ten (10) months. If the City Council approves the recommended action, Staff proposes that the initial step in the process be that LAFCO lead (in collaboration with the City and County) a community meeting to discuss the proposed annexation with the residents and other interested parties associated with the Island. 65F-2 Direct staff to initiate process to annex 17th Street and Tustin Avenue County of Orange Unincorporated Island June 5, 2018 Page 3 The following is the proposed annexation process timeline: June 5, 2018 City Council directs Staff to initiate the annexation process July — August 2018 LAFCO Public meeting (in collaboration with City/County) August 2018 Planning Commission considers a resolution recommending to the City Council regarding the General Plan consistency and the prezoning for the proposed annexation. September 2018 City Council considers Resolution, Annexation, General Plan Consistency and Prezoning Resolution and Cooperative Agreement, Property Tax Exchange Agreement, Cost Recovery Agreements (County, Developer, Owner), etc. October 2018 County of Orange considers Resolution, Annexation and Cooperative Agreement, Properly Tax Exchange Agreement, Cost Recovery Agreements, etc. November 2018 City files Application with LAFCO December 2018 — March 2019 LAFCO process and approves annexation STRATEGIC PLAN ALIGNMENT This item supports the City's efforts to meet Goal #3 — Economic Development, Objective #5 (Leverage private investment that results in tax base expansion and job creation citywide), Strategy A (Identify and market underutilized properties (city and non -city owned) for new development that will create new jobs and expand the City's tax base). FISCAL IMPACT There is no fiscal impact associated with this item. In the event the City Council approves the annexation process, there may be infrastructure improvements necessary to bring the Island to City standards as well as costs associated with the delivery of City services. If approved by City Council, Staff will review the conditions of the entire Island and meet with representatives from the County and the Owner/Developer of the development site to determine the improvements that are planned in the area and services that will need to be rendered going forward. This information, along with draft agreements between the City, County and the Owner/Developer, will be presented to the City Council for future consideration. Exhibits: 1. Map of 17"' Street and Tustin Avenue Island 2. OCLAFCO Project Application Form 65F-3 65F-4 EXHIBIT 1 r Lz i> _ J 1� • 1 �I I 1 1 vTustt'n; I 1 1 'r I U 65F-5 65F-6 EXHIBIT 2 ORANGE COUNTY LAFCO Project Applicadon Forst Page 1 of 12 PROJECT APPLICATION FORM OF THE ORANGE COUNTY LOCAL AGENCY FORMATION COMMISSION Orange County Local Agency Formation. Commission 2677 North Main Street, Suite 1050 Santa Ana, CA 92705 (714)640-5100 APPLICATION INSTRUCTIONS This application form is used to initiate the application process to the Orange County Local Agency Formation Commission (LAFCO) for a city or district annexation, reorganization, detachment, or a sphere of influence amendment. LAFCO staff looks forward to assisting you with your project. In addition to the information that you will provide us on this form, LAFCO staff is required to analyze additional data regarding your proposal from our Geographic Information System (GIS) and in-house data base, including, but not limited to: affected agencies, interested agencies, spheres of influence, school districts, land use/zoning, acres of prime agricultural land, and number of dwelling units. A Plan of Services may also be required demonstrating how municipal services will be provided to the affected territory. To assist staff in this effort, a mandatory pre -filing meeting is required of all completed prior to the pre -filing meeting. Please fill out this application as completely as possible. If you need assistance, please do not hesitate to contact a LAFCO staff member for guidance. If a question does not apply to your proposal, indicate "N/A". Orange County LAFCO is a "paperless" office. It is important that you list all email addresses where indicated on the application. Correspondence, staff reports, resolutions and other LAFCO forms and mailings, whenever possible, will be distributed electronically. (The information contained in this application maybesubject to disclosure ander the California Public Records Act Government Code Section 6250 et seg) 65F-7 ORANGE COUNTY LAFCO Project Application Form Page 2 of 12 APPLICATION FOR: (check all that apply) ❑ Annexation to: ❑ Detachment from: ❑ Reorganization (2 or more changes of organization) of: ❑ Other (explain): ❑ *Sphere of Influence Amendment for: *If requesting a sphere of influence amendment "only" please answer the following two questions: 1. Why is a sphere of influence amendment needed? 2. How would a sphere of influence affect the present and future need for services in the project area? GENERAL DESCRIPTION AND JUSTIFICATION OF PROPOSAL: 1. What changes of organization are included? What agencies are involved? 2. Explain the purpose of each request of change of organization. 3. Explain how the proposal provides more logical boundaries and/or improves the provision of service. (The information contained in this application maybe subject to disclosure under the California Public Records Act Government Code Section 6250 et seg) 65F-8 [ORANGE COUNTY LAFCO Project Application Form Page 3 of 12 4. Does this proposal have 100°/% consent of all property owners? (If so, please complete Attachment 1.) WHO INITIATED THIS PROPOSAL? Generally, LAFCO proposals may be initiated by a resolution of an affected agency, a city council, special district or by the Board of Supervisors. In addition, a proposal may be initiated by a petition of the affected area's registered voters or landowners. Attach one of the following to this application form: ❑ Agency Resolution ❑ Landowner Petition ❑ Registered Voter Petition LOCATION AND ADDRESS OF PROPERTY: MAP AND LEGAL DESCRIPTION: A map and legal description of the proposal, even if prepared by a private engineering firm, must be submitted directly to the Orange County Surveyor for review and final approval. An application can be filed with LAFCO without a map and legal, but a proposal cannot be scheduled for LAFCO hearing prior to receipt of a County Surveyor -approved map and legal description. You may contact the County Surveyor at the Resources and Development Management Department, Geomatics/Land Information Systems Division, at (714) 834-4378. Additionally, the map and legal description must meet the State Board of Equalization's requirements. The BOE's "Change of Jurisdictional Boundary" requirements are available for download athttp://www.boe.ca.vov/arontaxes/snrdconthtm. Please note, the BOE requires an additional vicinity map that shows the project area in relation to a larger geographic area. A map and legal description has been: ❑ Certified by the County Surveyor and is attached to this application. ❑ Submitted for review to the County Surveyor. ❑ Other (please explain) DISCLOSURE OF POLITICAL EXPENDITURES: Orange County LAFCO requires applicants to report all expenditures for political purposes related to an application and proceedings to be reported to the Commission's Executive Officer in compliance with Government Code Sections 56700.1 and 57009. The following is attached to this application form: (The information contained in this application may be subject to disclosure render the California Public Records Act Government Code Section 6250 et seq.) 65F-9 ORANGE COUNTY LAFCO Project Application Form Page 4 of 12 ❑ LAFCO Disclosure Form (please complete LAFCO Disclosure of Political Expenditures, Attachment 3); copy of Financial reports and disclosures submitted to FPPC (please attach) ❑ Please check here if you have no related financial reports or disclosures. INDEMNIFICATION AGREEMENT: LAFCO policy requires that all applicants sign an indemnification agreement (see Attachment 2) which indemnifies LAFCO employees, agents and attorneys in the event of litigation is filed concerning the approval of an application. The following is included with this application form: ❑ Signed Indemnification Agreement FILING FEES: Applicants are required to pay fees in accordance with OC LAFCO's adopted fee schedule (see Attachment 4) to cover the administrative and staff costs required to evaluate proposals for hearing. Checks must be made payable to: "Orange County LAFCO". The following is included with this application form: ❑ Check for Filing Fees ❑ Other (explain why Filing Fees not included): CERTIFICATION I certify, under penalty of perjury by the laws of the State of California, that the information contained in this application is true and correct. I acknowledge and agree that the Orange County Local Agency Formation Commission is relying on the accuracy of the information provided and my representations in order to process this application proposal. Signature: Name: Title: Date: (The information contained in this application maybe subject to disclosure under the California Public Records Act Covertement Code Section 6250 et seq.) 65F-10 ORANGE COUNTY LAFCO Project Application Fornt Page 5 of 12 ATTACHMENT Property Owner Consent Form (All legal owners must sign a consent form or submit a letter of signed consent.) located at consent to the annexation/reorganization of my property (or Assessor Parcel Numbers ) to the fagency(ies)]. Signature: Address: City, State, Zip: Date: (The information contained in this application may be subject to disclosure ander the California Public Records Act Government Code Section 6250 et seg) 65F-11 ORANGE COUNTY LAFCO Project Application Fora: Page 6 of 12 ATTACHMENT Indemnification Agreement As part of this application, applicant and real party in interest, if different, agree to defend, indemnify, hold harmless, and lease the Orange County Local Agency Formation Commission, its agents, officers, attorneys, and employees from any claim, action, or proceeding brought against any of them, the purpose of which is to attack, set aside, void, or annul the approval of this application or adoption of the environmental document which accompanies it. This indemnification obligation shall include, but not be limited to, damages, costs, expenses, attorney fees, or expert witness fees that may be asserted by any person or entity, including the applicant, arising out of or in connection with the approval of this application, whether or not there is concurrent passive or active negligence on the part of the Orange County Local Agency Formation Commission, its agents, officers, attorneys, or employees. Executed at California on the day of 2_ APPLICANT to Title: Mailing Address: REAL PARTY IN INTEREST (if different from Applicant) By: Title: Mailing Address: (The information contained in this application maybe subject to disclosure tinder the California Public. Records Act Government Code Section 6250 et seq.) 65F-12 ORANGE COUNTY LAFCO Project Application Fora: Page 7 of 12 ATTACHMENT LAFCO Disclosure of Political Expenditures Effective January 1, 2008, political expenditures related to a proposal for a change of organization or reorganization that will be or has been submitted to LAFCO are subject to the reporting and disclosure requirements of the Political Reform Act of 1974 and the Cortese -Knox -Hertzberg Act of 2000. Please carefully read the following information to deteratine if reporting and disclosure provisions apply to you. Any person or combination of persons who, for political purposes, directly or indirectly contributes $1,000 or more, or expends $1,000 or more in support of, or in opposition to a proposal for a change of organization or reorganization that will be submitted to the Commission, shall disclose and report the contribution to the Commission pursuant to the requirements of the Political Reform Act of 1974 (Government Code Section 81000 et seq.) as provided for local initiative measures, and Section 56700.1 of the Cortese -Knox -Hertzberg Act of 2000. • Pursuant to Government Code Section 57009, any person or combination of persons who directly or indirectly contributes $1,000 or more, or expends $1,000 or more in support of, or in opposition to, the conducting authority proceedings for a change of organization or reorganization, must comply with the disclosure requirements of the Political Reform Act of 1974, (Government Code section 81000 et seq.). Applicable reports must be filed with the Secretary of the State and the appropriate city or county clerk. Copies of the report must also be filed with the Orange County Executive Officer. Evaluation Checklist for Disclosure of Political Expenditures The following checklist is provided to assist you in determining if the requirements of Government Cade Sections 81000 et seq. apply to you. For further assistance, contact the Fair Political Practices Commission at 428 J Street, Suite 450, Sacramento, CA 95814, (866) 275-3772 or at http://www.fnnc.ca.gov. 1. Have you directly or indirectly made a contribution or expenditure of $1,000 or more related to the support or opposition of a proposal that has been or will be submitted to LAFCO? ❑ Yes ❑ No Date of contribution Amount $ Name/ Ref. No of LAFCO Date proposal was submitted to LAFCO 2. Have you, in combination with other person(s), directly or indirectly contributed or expended $1,000 or more related to the support or opposition of a proposal that has been or will be submitted to LAFCO? ❑ Yes ❑ No Date of contribution Amount $ Name/ Ref. No of LAFCO Proposal Date proposal was submitted to LAFCO 3. If you filed a report in accordance with FPPC requirements, has a copy of the report been filed with Orange County LAFCO? ❑ Yes ❑ No (The information contained in this application may be subject to disclosure under the California Public Records Act Government Code Section 6250 et seq.) 65F-13 ORANGE COUNTY LAFCO Project Application Forex Page 8 of 12 ATTACHMENT 4 ORANGE COUNTY LOCAL AGENCY FORMATION COMMISSION SCHEDULE OF FILING AND PROCESSING FEES Effective 7/1/2017 FEE SCHEDULE OVERVIEW In accordance with Government Code Section 56383, the Commission may establish a schedule of fees and a schedule of service charges for Local Agency Formation Commission (LAFCO) proceedings. The submission of an application to the Orange County (LAFCO) is not officially accepted for processing until the filing fee deposits have been received by the agency. The fees associated with an application or petition are calculated on a time and materials schedule as detailed in the Fee Schedule. PROVISIONS 1. Additional Deposits: a. The Executive Officer may require an additional deposit from applicants to cover actual costs for review and processing of any application if the Executive Officer determines the project is extraordinary in scope. For example, the Executive Officer may determine that the processing of the proposal will require advice and counsel from LAFCO's General Counsel beyond routine review of the Executive Officer's report, Commission resolutions, and agenda materials. Further, LAFCO reserves the right to require reimbursement for additional expenses not listed in the fee schedule but incurred as a result of processing an application. b. If the actual charges exceed the amount of the deposit, the applicant or petitioner shall be notified and shall pay the excess within 15 days of receipt of a statement from LAFCO. Failure to pay may be cause for delay and/or denial of the application/petition, and no proceeding or application shall be completed until all fees due have been paid in full. 2. Indemnification Agreement Requirement As a condition of approval of any change of organization or reorganization, out -of - agency service agreement, sphere of influence or municipal service review by LAFCO, the applicant(s) and real party(ies) in interest are required to defend, indemnify, hold harmless, and release LAFCO and its agents, officers, attorneys, and employees from any claim, action, or proceeding against LAFCO, and its agents, officers, attorneys, and employees to attack, set aside, void, or annul the approval of LAFCO concerning the proposal or any action relating to, or arising out of, such approval. In accordance with the Commission's Policy for Indemnification of LAFCO by Applicants (adopted March 8, 2000), the applicant(s) and real party (ies) (The information contained in this application maybe subject to disclosure raider the California Public Records Act Government Code Section 6250 et seq) 65F-14 ORANGE COUNTY LAFCO Project Application Form Page 9 of 12 in interest are required to submit a signed indemnification agreement as part of the application. ORANGE COUNTY LAFCO FEE SCHEDULE LAFCO PROCESSING FEES TYPE OF ACTION COST SCHEDULE INITIAL DEPOSIT Actual Costs* One Change of Organization (e.g. annexation or detachment Time and Materials $4,600 One Change of Organization with Sphere of Influence Change Time and Materials $5,600 Reorganizations (request for 2 or more changes of organization) Time and Materials $7,900 District Formations or Consolidations Time and Materials $10,000 District Dissolutions, Mergers, or Establishment of a Subsidiary District Time and Materials $7,900 City Incorporations/Dis-incorporations See additional project completion deposits below. Time and Materials $10,000 Activation of Latent Powers Time and Materials $7.900 Request for Municipal Service Review and/or Sphere of Influence Review/Update Time and Materials $7.900 Out -of -Agency Service Agreement Time and Materials $4,600 Request for Reconsideration Time and Materials $3,200 Request for Extension of Time to Complete Proceedings Time and Materials $1,000 LAFCO STAFF/LEGAL COUNSEL BILLING RATES LAFCO Staff Rate Fully Burdened Hourly Rate LAFCO Legal Counsel Actual Costs* *See Attachment Afar current rates. (The information contained in this application may be subject to disclosure under the California Public Records Act Government Code Section 6250 et seq.) 65F-15 ORANGE COUNTY LAFCO Project Application Forol Page 10 of 12 PROJECT COMPLETION FEES AND CHARGES Public Noticing and Actual Costs Publication Costs Postage or Overnight Service (Based on noticing required by Government Code Section Agenda Packet 56661) State Board of Equalization Actual Costs Fees (Payable to the State Board of Equalization and based on their latest fee schedule) Compliance with California Actual Costs Environmental Quality Act (CEQA) (May include LAFCO staff time to prepare environmental documentation, actual consultant costs, and appropriate filing fees. Department of Fish and Wildlife filing fees are required to be paid at the time LAFCO files the Notice of Determination with the Clerk ofthe Board. The fees listed below include the county's $50filingfee and are current as of January 1, 2017) a. Negative Declaration $2,266.25 b. Environmental Impact Report $3,128.25 Comprehensive Fiscal Actual Costs Analysis forrationoratiOri or Disincorporation (A $50,000 deposit is required at the time the application is submitted. Proposals All excess costs will be the responsibility of the project proponent; any balance will be refunded at the conclusion of the project.) State Controller's Fiscal Actual Costs Review for Incorporations (A $25, 000 deposit is required at the time a Request far State Controller Review is submitted. All excess costs will be the responsibility of the project proponent, any balance will be refunded at the conclusion ofthe project.) Registrar of Voters — Actual Costs Verification of Signatures Special Legal Counsel Costs Actual Costs Consultants Actual Costs MATERIALS CHARGES Reproduction and Faxing Actual Costs* Costs Postage or Overnight Service Actual Costs Agenda Packet Actual cost of reproductions (Specific Meeting) (The information contained in this application maybe subject to disclosure under the California Public Records Act Government Code Section 6250 et seq) 65F-16 ORANGE COUNTY LAFCO Project Application Fornt Page II of 12 Agenda Packet $250/year (hard copy) (subscription) *See Attachment Afor current rates. (The information contained in this application may be subject to disclosure under the California Public Records Act Government Code Section 6250 et seq.) 65F-17 ORANGE COUNTY LAFCO Project Application Form Page 12 of 12 ATTACHMENT A ORANGE COUNTY LAFCO FEE SCHEDULE ACTUAL COST RATES Updated 7/1/2017 Fullv burdened staff hourlv rates - Position Hourly Rate Executive Officer $ 116 Assistant Executive Officer $ 77 Policy Analyst* $ 34-41 Commission Clerk $ 42 *Depends on analyst's level on range *Depends on analyst's level on range 2. Legal Counsel Hourly Rates - $250 for LAFCO-initiated services $495 for project applicant -initiated services 3. Reproduction Cost - 0.25 per page 4. Audio Tape Reproduction Cost - $15.00 (The information contained in this application maybe subject to disclosure under the California Public Records Act Government Code Section 6250 et seg) 65F-18