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HomeMy WebLinkAboutCC AG PKT 2009-08-10 #AADEN®A STAFF REPORT DATE: August 10, 2009 TO: Honorable Mayor and City Council THRU: David Carmany, City Manager FROM: Lee Whittenberg, Director of Development Services SUBJECT: COUNCIL CONSIDERATION - SUNSET BEACH ANNEXATION SUMMARY OF REQUEST: After deliberation by City Council, provide direction regarding any desired City actions relative to the possible annexation of Sunset Beach into Seal Beach. OPTIONS TO CONSIDER: Staff has identified the following options that the Council can consider and provide direction to Staff as determined appropriate. 1) Option 1: Adopt RESOLUTION NO. 5908, A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEAL BEACH, CALIFORNIA, MAKING APPLICATION TO AND REQUESTING THE LOCAL AGENCY FORMATION COMMISSION OF ORANGE COUNTY TO TAKE PROCEEDINGS PURSUANT TO THE CORTESE-KNOX-HERTZBERG LOCAL GOVERNMENT REORGANIZATION ACT OF 2000 FOR THE CITY OF SEAL BEACH TO PLACE APPROXIMATELY 84 ACRES OF PROPERTY GENERALLY KNOWN AS SUNSET BEACH WITHIN ITS SPHERE OF INFLUENCE, AND FILE ANNEXATION 2009-01. (Draft Resolution provided as Attachment A) Also: ^ Direct City Manager and City Attorney to file the reorganization application with the Local Agency Formation Commission proposing a "sphere of influence amendment" to include the Sunset Beach area within Seal Beach sphere of influence and annexation of Sunset Beach to the city; ^ Authorize the City Manager and City Attorney to enter into negotiations with the County of Orange regarding the exchange of property tax revenue generated; and Agenda Item /~ Page 2 ^ Instruct the City Manager to provide a Status Report at a future City Council Meeting, including any necessary environmental document and Budget Amendment; or ^ Option 2: Provide additional direction to staff and City Attorney based on Council discussion; or ^ Option 3: Receive and File this Staff report. BACKGROUND: At the July 13 City Council meeting staff was directed to prepare a reportfor City Council consideration regarding the potential annexation of Sunset Beach into Seal Beach. The County of Orange is interested in divesting itself of the duty to provide urban services to unincorporated county islands and, for that reason, this issue is unfolding quickly. Provided below is an overview of the current status of the unincorporated Sunset Beach area. About Sunset Beach: Sunset Beach is a one-mile stretch of unincorporated land located south of Seal Beach and Surfside, comprised of some 1200 residents living near white sand beaches, with hotels, restaurants and shops situated along Pacific Coast Highway. Sunset Beach is known for its quaint post office, the center of social life, where events are posted and residents get their mail and for the greenbelt which once served as the right of way for the Pacific Electric Red Car. Sunset Beach is a 100-year-old community consisting of a mix of long time residents and newcomers who share a passion for the beach and independence in ingenuity in protecting their treasured location. Sunset Beach has an abundance of small town charm, as is evidenced by a community association that sponsors annual activities such as a Mother's Day Weekend Art Festival, Chili Cook-off, "No Parade", and a Mile Long Garage Sale. '~~ Merely mentioning these events hardly does them justice because it is through events like these that community is defined. Residents of Sunset Beach like their community the way it is. They want to maintain its identity in the future. As a community, they are at a fork in the road. Sunset Beach residents, when asked at a recent community association meeting if annexation were inevitable to indicate a preference between Huntington Beach and Seal Beach, chose Seal Beach. The Sunset Beach representatives understand that the Seal Beach Utility Tax rate is 11 % and that this is the price of admission. They plan to attend the City Council meeting to make their case directly. Page 3 Current Sphere of Influence Inclusion: As the City Council is aware, on July 8, 2009, the Orange County Local Agency Formation Commission ("LAFCO") voted 4-3 to discontinue governance of Sunset Beach as a county island and to place Sunset Beach within the sphere of influence of Huntington Beach (a motion by County Supervisor Moorlach to allow Sunset Beach residents 90 days to try to work something out with Seal Beach failed 3-4). A copy of the adopted LAFCO Resolution is provided as Attachment B. If the LAFCO Board was signaling that the days of county island independence are over, Sunset Beach got the message. LAFCO staff continues to believe and recommend that the most appropriate local governmental agency to eventually serve the unincorporated Sunset Beach community is Huntington Beach. Provided as Attachment C is the LAFCO Staff Report, Exhibits, and LAFCO Staff Report Attachment 4 for the information of the City Council. During the LAFCO preparation of the "Sphere of Influence Updates and Municipal Service Review Reconfirmations" for the City of Los Alamitos, the City of Huntington Beach, and the Sunset Beach Sanitary District in early 2009 the City Council indicated by letter approved by the City Council on April 13, 2009, and mailed on April 14, 2009 that: "Should the residents of Sunset Beach express an interest in joining the City of Seal Beach, the City would be amenable to a discussion regarding this issue and any required amendments to the sphere of influence. Any decision to annex this area would follow discussions with the affected residents and a full review of fiscal impacts and all municipal services including the Sunset Beach Sanitary District." Status of Huntington Beach Possible Annexation: On July 31, 2009 the Huntington Beach City Council held a special meeting to review and update the strategic goals of the Huntington Beach City Council. Sunset Beach representatives attended and spoke to dispel any possible conception that it was only a small group of Sunset Beach people that didn't want to go to Huntington Beach. Huntington Beach City Councilmember Gil Coerper stated he intended to introduce a motion to annex Sunset Beach in the September or October time frame. Councilmember Don Hansen expressed dismay over Sunset Beach residents rejecting Huntington Beach. Councilmember Jill Hardy stated that not all Councilmembers were in favor of annexation. Two Huntington Beach citizens spoke in favor of not annexing Sunset Beach. No formal action was taken. Page 4 Fiscal Review: "County Island Data Matrix -Sunset Beach -Data Year 2008/2009": A review of fiscal impacts and municipal services was completed by an independent consultant for LAFCO. Staff has reviewed the report, "County Island Data Matrix -Sunset Beach -Data Year 2008/2009" as presented to LAFCO during their Board consideration of the Sphere of Influence Consideration for Huntington Beach. As indicated in the LAFCO Staff Report: "The fiscal model was developed by the fiscal consultant with the assistance of LAFCO and County staff, including representatives from the Sheriff, Library, Planning, Parks, Public Works, Auditor- Controller and CEO departments." "General fund revenues and expenditures include all unrestricted revenues and expenditures from the County General Fund. Road restricted revenues and expenditures include revenues restricted for road maintenance purposes and expenditures only. Other municipal revenues include revenues from sources and services that maybe provided by special districts, joint powers authorities, or part of a county regional system."' A copy of that analysis is provided as Attachment D for the information of the City Council. That analysis indicates the following: Revenues Expenditures Net Revenue/(Expenditure) General Fund 701,419 1,237,023 (535,604) Road Restricted 218,654 118,501 100,153 Other Municipal 729,070 Not Available Some of the more important items noted in the fiscal analysis are the following: ^ Of the estimated expenditures by the County of Orange, approximately 97% are for Sheriff Services. ^ There is no estimate provided for the cost of response services provided by Orange County Fire Authority because, as a County island, Sunset Beach's fire and emergency response services are provided and funded on a regional basis through the Structural Fire Fund. The Structural Fire Fund is a Fund maintained by the County of Orange whereby a portion of the 1 % basic property tax levy is collected from property owners, Proposed Sphere of Influence Review for City of Huntington Beach (SOI 09-04) and Reconfirmation of Municipal Service Review Determination (MSR 09-03), Orange County Local Agency Formation Commission, July 8, 2009, page 3. Page 5 accumulated in the Structural Fire Fund, and then paid to the OCFA for fire services. Seal Beach is an OCFA contract city, therefore the property taxes collected from the Sunset Beach annexation area would need to be transferred to Seal Beach through an Annexation Agreement, and then passed-through to OCFA pursuant to the existing Fire Services Agreement between OCFA and the City of Seal Beach. The LAFCO Staff Report indicates: "Within Sunset Beach there is an OCFA Fire Station manned by reserve (volunteer) personnel. The station houses OCFA Engine #3. In 2008, 51 calls were received by the Sunset Beach station requiring a fire engine unit. Of the 51 calls, there were only two instances in which the necessary qualified Reserve Firefighters arrived to staff Engine #3. The City of Huntington Beach, which has a fire station located approximately 800 feet from Sunset Beach on Warner Avenue, is generally the first responder to calls in Sunset Beach requiring fire engine/paramedic assistance. Since 2004, OCFA has contracted with the City of Huntington Beach to provide Advance Life Support (paramedic) services to the Sunset Beach area." 2 ^ There are 6 shared County operated and maintained traffic signals. ^ Sunset Beach residents participate in the Orange County Library system and use the Mary Wilson library in located in Seal Beach. City staff has reviewed the "County Island Data Matrix -Sunset Beach -Data Year 2008/2009" as presented to LAFCO and is of the opinion that, in particular, the estimated expenditures by the County of Orange .for Sheriff Services, at $1,198,524, is overstated, and not an accurate reflection of costs for the currently provided level of services to the Sunset Beach community. When this expenditure is factored on a more realistic cost basis, the area may achieve revenue neutrality. Staff has been able to confirm that Orange County Fire Authority will continue to contract with Huntington Beach for Life Support Services to the Sunset Beach area if Sunset Beach is annexed to Seal Beach.3 ` Op. cit. page 2. s Lori Zeller, Orange County Fire Authority, E-Mail Message August 3, 2009, 4:49 PM Page 6 Overview of City of Seal Beach "Preliminary Fiscal Review": Staff has prepared the following "Preliminary Fiscal Review" to attempt to provide the City Council with a fairly accurate representation of revenues and expenditures, given a very short time frame to complete the analysis. SUMMARY -PRELIMINARY FISCAL REVIEW, REVENUE NEUTRAL POLICE/MARINE SERVICES DEPLOYMENT Total General Fund Revenues Total General Fund Expenditures - No Police or Marine Safety Services General Fund Expenditures -Police Services (Includes 2 sworn officers and all overhead costs) General Fund Expenditures -Marine Safety Services (Includes 1 Full-time and 10 Part-time Lifeguards and all overhead costs) Total General Fund Expenditures iVet General Fund Revenues/Expenditures 1 105 873 $ 360,750 $ 374,523 $ 307,000 1 042 273 $ 63, 600 SUMMARY -PRELIMINARY GENERAL FUND FISCAL REVIEW OPTIMAL POLICE/MARINE SERVICES DEPLOYMENT Total General Fund Revenues Total General Fund Expenditures - No Police or Marine Safety Services General Fund Expenditures -Police Services (Includes 3 sworn officers and 1 detective; and all overhead costs) General Fund Expenditures -Marine Safety Services (Includes 2 Full-time and 10 Part-time Lifeguards and all overhead costs) Total General Fund Expenditures Net Revenues/Expenditures 1 105 873 $ 360,750 $ 758,000 $ 370,600 $1,489,350 ($ - 383,477) Page 7 Identified Additional First Year Start Up Costs: Police Department New patrol vehicle, equipment, uniforms, etc: $ 50,000 - $ 70,000 Marine Safety: Cost Item Towers - 5 @ $ 11,000 Tower Outfitting - 5 @ $1,000 Communications - 7 800mghz radios C $ 6,000 each Training - 10 new Lifeguards New Lifeguard Truck - Acquisition and Equipping Total Start-Up Costs Estimated Service Provision Cost $ 55,000 $ 5,000 $ 42, 000 $ 10,000 $ 30,000 $142,000 Total Identified Additional First Year Start Up Costs: $ 192,000 - $212,000 It is to be noted that the "Preliminary Fiscal Review" has not been reviewed by a fiscal impact consultant, and that step would be recommended if the City Council decides to pursue the change to the Seal Beach Sphere of Influence and annex Sunset Beach. (Intentionally Left Blank) Page 8 Overview of "Preliminary Fiscal Review" for the City of Seal Beach: Provided below is a general summary of anticipated City revenues and general municipal services expenditures that would be received from and provided to Sunset Beach: ANTICIPATED CITY REVENUES General Fund Revenues Amount Assumption Notes Property Tax $ 145,306 Actual Based on Master Tax Agreement with the City containing the island in its SOI. Do not include Structural Fire Fund, Sales or MLVF In Lieu, or other Special Assessment Property Taxes. Sales Tax $ 186,857 Actual Actual from sales tax database of accounts within the Island (HDL Companies). Property Tax In Lieu of Sales Tax $ 19,738 Actual Actual from sales tax revenue generation from accounts within the Island. Property Tax In Lieu of MVLF $ 184,521 Actual Actual amount calculated based on Assessed valuation of Island APNs. Utility User Tax $ 295,543 Per Capita City City of Seal Beach Per Capita applied to Island population. Transient Occupancy Tax $ 181,627 Actual Actual from accounts within the Island, increased from 10% County rate to 12% City rate. Franchise Fees Business License Fees County does not impose a Business License Fee Animal License/Shelter Fees $ 1,745 Actual Actual from fees collected within the Island. Fines/Forfeitures $ 1,236 Per Capita UNC County Unincorporated Per Capita applied to Island population. Planning Fees $ 1,000 Per Capita Clty City of Seal Beach Per Capita applied to Island population. Building Plan Check and Permit Fees $ 26,000 Per Capita City City of Seal Beach Per Capita applied to Island population. Parking Citations/Vehicle Code Violations $ 41,700 Per Capita City City of Seal Beach Per Capita applied to Island population. Leisure Program Fees $ 20,600 Per Capita City City of Seal Beach Per Capita applied to Island population. Total General Fund Revenue 1 105 873 Note: The following potentially significant General Fund Revenue sources have not been identified: Franchise Fees and Business License Fees. The Transient Occupancy Tax revenue amount is an estimate and may be overstated based on current economic conditions. Page 9 ANTICIPATED CITY REVENUES (Continuea~ Road Related Restricted Amount Assumption Notes Revenues Gasoline taxes S & H Section 2104 $ 127,462 Per Capita -CW Countywide Per Capita applied to island population -County Note -Per lane Mile. S & H Section 2104 $ 59,808 Per Capita -CW Countywide Per Capita applied to island population -County Note -Per lane Mile. S & H Section 2104 $ 3,210 Per Capita -CW Countywide Per Capita applied to island population -County Note -Per lane Mile. Measure M Local Streets & Roads (TurnbaCk) $ 28,174 Actual Actual from sales tax revenue generation from accounts within the Island -County Note -Per lane Mile. Total Road Related Restricted $ 218 654 Revenues , Note: Revenue amounts have not been able to be verified by City Staff. Indicated amounts are from LAFCO report. Page 10 ANTICIPATED CITY EXPENDITURES General Fund Expenditures Amount Assumption Notes City Council $ 5,850 Per Capita City City of Seal Beach Per Capita applied to Island population. City Manager $ 39,600 Per Capita City City of Seal Beach Per Capita applied to Island population. City Clerk $ 17,500 Per Capita City City of Seal Beach Per Capita applied to Island population. City Attorney $ 17,400 Per Capita City City of Seal Beach Per Capita applied to Island population. Administrative Services $ 35,750 Per Capita City City of Seal Beach Per Capita applied to Island population. Risk Management $ 50,300 Per Capita City City of Seal Beach Per Capita applied to Island population. Planning $ 21,500 Per Capita City City of Seal Beach Per Capita applied to Island population. Building and Safety $ 18,100 Per Capita City City of Seal Beach Per Capita applied to Island population. Public Works - Admin & Engineering $ 4,500 Per Capita City City of Seal Beach Per Capita applied to Island population. Public Works -Storm Drains $ 15,500 Per Capita City City of Seal Beach Per Capita applied to Island population. Public Works -Street Maintenance $ 48,700 Per Capita City City of Seal Beach Per Capita applied to Island population. Public Works -Landscape Maintenance $ 11,100 Per Capita City City of Seal Beach Per Capita applied to Island population. Public Works -Fleet Maintenance $ 13,900 Per Capita City City of Seal Beach Per Capita applied to Island population. Public Works -Buildings and Facilities Maintenance $ 27,800 Per Capita City City of Seal Beach Per Capita applied to Island population. Community Services $ 15,950 Per Capita City City of Seal Beach Per Capita applied to Island population. Community Services -Sports $ 2,050 Per Capita City City of Seal Beach Per Capita applied to Island population. Community Services -Parks & Recreation $ 15,250 Per Capita City City of Seal Beach Per Capita applied to Island population. Police Service -Personnel and Overhead $ 374,523 - $ 758,000 Actual Cost Preliminary Costs identified by Police Department Marine Safety -Personnel and Overhead $ 307,000 - $ 370,600 Actual Cost Preliminary Costs identified by Lifeguard Chief Total General Fund Expenditures $ 1,042,273 - $1,489,350 Page 11 ANTICIPATED CITY EXPENDITURES (Continuea~ Road Maintenance and Related Amount Assumption Notes Expenditures Routine Road Maintenance General R-O-W Maintenance $ 96,761 Road Miles Road Mile factor applied to actual number of Road Miles - 3.98 centerline road miles. Traffic Signal Operation $ 6,000 Per Signal Per Signal factor applied to actual number of traffic signals - 6 signals. Street Light Operation $ 15,740 Per Light Per Light factor applied to actual number of street lights -102 lights. Total Road Related Restricted $ 11 1 Expenditures 8,50 Note: Expenditure amounts have not been able to be verified by City Staff. Indicated amounts are from LAFCO report. Page 12 Meetings with Sunset Beach Representatives: Representatives of Sunset Beach have met with City representatives to determine if there is any interest in continuing to explore efforts to eventually annex Sunset Beach into Seal Beach. Provided below is a general summary of Staff responses to the issues and concerns raised during those discussions: ^ Sunset Beach to maintain a separate identity -similar to Surfside (with signage). , Staff Comment: Staff believes this can be accomplished without major difficulty. In addition to the Surfside example we would be looking to the similar situation with the City of Newport Beach and Corona Del Mar. Also, the issue of common street names in Seal Beach and Sunset Beach would require further consideration. It would appear that this concern can be addressed in a similar manner as it has been addressed in the Newport Beach/Corona Del Mar example. ^ Establish the Sunset Beach Community Association as the liaison with the Seal Beach City Council. Staff Comment: Staff understands this comment is in regards to the City ensuring that any future project activities the City might contemplate within the Sunset Beach area would be presented to the Community Association prior to any final City action being taken. The City has a long established process of working the many different neighborhood organization within the City (i.e., Leisure World Golden Rain Foundation, Surfside Community Association, various Homeowner Associations) when a particular City project might impact those local communities of interest. As this is an ongoing process the City currently utilizes with the different community associations and groups within Seal Beach, Staff believes this process can be accomplished without major difficulty. ^ Keep the Sunset Beach Local Coastal Plan (LCP) with revisions to reflect the change from the County of Orange to the City of Seal Beach. Confirm that Seal Beach will submit new pertinent plans and information to the Sunset Beach local advisory board for their review and comment. Staff Comment: Staff initially believes this can be accomplished without major difficulty. However, until a complete review of the Sunset Beach Specific Plan/Local Coastal Plan can be completed it is not possible to provide a definitive answer to this issue. ^ Keep the parking permits for Sunset Beach residents at the same price. Staff Comment: Until a complete review of the Sunset Beach parking permit program and fee structure can be completed it is not possible to provide a definitive answer to this issue. Page 13 ^ Continue all encroachment programs (beach and waterway) permitted by the LCP. Transfer the current files, permits and computer records from Santa Ana to Seal Beach. Staff Comment: Staff initially believes this can be accomplished without major difficulty. However, until a complete review of the Sunset Beach Specific Plan/Local Coastal Plan can be completed it is not possible to provide a definitive answer to this issue. ^ Sunset Beach would welcome utilization of its Fire Station by the Seal Beach police. Staff Comment: The offer is appreciated. It is also noted that the facility may be a more appropriate use for Lifeguard operations. Any future use of this existing public facility would certainly be considered further if the annexation process does commence, including seismic evaluations for utilization by emergency responders. It should be noted that OCFA owns Fire Station #3 in Sunset Beach, along with the land and therefore OCFA would need to be included on any discussions about co-locating or mixed use of the facility. ^ Maintain the Sunset Beach Sanitary District intact with its present "co-terminus" Sphere of Influence. Staff Comment: Staff does not foresee any effort by Seal Beach to initiate a change to the recently adopted LAFCO "co-terminus" Sphere of Influence if the annexation process regarding Sunset Beach does commence. That decision would ultimately be made by the City Council. ^ Support the current Sunset Beach postal delivery system. Staff Comment: The City does not foresee any effort to change the current postal delivery system of residents having to pick-up mail at the Sunset Beach postal facility if the annexation process regarding Sunset Beach does commence. This would most probably be an issue that would be considered by the Postal Service. ^ Seal Beach to take over ownership and maintenance of the beach and Greenbelt from the County. Staff Comment: The beach ownership and maintenance would require additional discussions with the County of Orange and potentially the funding agencies for the US Army Corps of Engineers Surfside-Sunset Beach Replenishment projects to determine all potential fiscal impacts of such an action. Additional areas that would require further investigation relative to the beach and greenbelt areas would be: ^ Receipt of Tidelands Beach Funds by City; ^ refuse franchise agreements; ^ contracts for maintenance of public green belt area; and ^ contracts for maintenance of beach parking lot area. Page 14 ^ Seal Beach create a business license fee plan for Sunset Beach that would serve to limit undesirable firms seeking to open such as medical marijuana dispensaries, tattoo parlors, etc. Staff Comment: The City would need to conduct additional research regarding current business license practices and regulations applicable in Sunset Beach, uses allowed within the provisions of the Sunset Beach Specific Plan/Local Coastal Plan, and pertinent business license regulations of the City of Seal Beach. It has been confirmed by the County of Orange that there are no applicable business license regulations within Sunset Beach. ^ Confirm the County contract details (including class size limits) of the Junior Lifeguard Program conducted by a private contractor on Sunset Beach. Staff Comment: The City would need to conduct research regarding current contract provisions with the current service provider. It is our current understanding that the current contract for a Junior Lifeguard program at Sunset Beach expires this year. ^ Gain assurance from the County that the undergrounding of utilities on PCH program with Southern Cal Edison will be continued and completed in a timely manner. Staff Comment: The City would need to conduct research regarding current contract provisions and project completion schedules with the current service provider and the County of Orange. ^ Obtain funds from Orange County to cover the repaving of numbered streets between North and South Pacific and funding to assure completion of five restrooms being constructed on the Greenbelt. Staff Comment: The City would need to conduct research regarding current contract provisions with the current service provider and the County of Orange. Overview of Issues by City Department: Provided below is a brief overview of issues by City department that have been identified for City Council consideration during its deliberations on this matter: ^ City Council: Impact of an additional 1,227 residents on the re-districting of council districts after the release of the 2010 Census population figures. Upon the release of the 2010 US Census population figures in 2011, the City will need to review its council district boundaries to ensure compliance with Federal, State, and local Charter provisions, which require that districts be "nearly equal " in population considering a number of factors. That review could include the possibility of including Sunset Beach in Council District 3. Page 15 Provided below is information regarding the 2000 City Council re- Districting: "Overview of 2000 and 1990 District Populations: Provided below is a summary by City Council District of that information in bold for 2000 Census information with the current population numbers and difference from the current averages indicated in parenthesis: Council Population +/- Difference % +/- Difference District (Median) (Median) (Average) % (Average) 1 4938 (5158) 99 2.05% 106.6 (108) 2.21 (2.75%) 2 4736 (4911) -103 -2.13% -95.4 (-109) -1.97% (-2.17%) 3 4839 (5078) 0 0.00% 7.6 (58) 0.16% (1.16%) 4 4842 (5024) 3 0.06% 10.6 (4) 0.22% (0.07%) 5 4802 (4927) -37 -0.76% -29.4 (-93) -0.61 (-1.85%) Average Median 4831.4 4839"4 (5,020) As can be determined by the above information, the population of District 1 at the time of reconfirming the district boundaries in 2001 was 99 persons more than the median District population. An additional 1,227 persons, an approximate 5% increase in total city population, will probably require adjustments to all council district boundaries to ensure compliance with applicable redistricting laws and procedures. ^ City Manager: No direct impacts identified. Additional staff efforts will be required to ensure proper coordination of the transfer of duties and responsibilities from various County departments/agencies to City departments/agencies. ^ City Clerk: Increased costs for conducting future elections and for required public notices for projects within the Sunset Beach area. Additional staff efforts will be required to ensure proper coordination of the transfer of duties and responsibilities from various County a City Council Agenda Report re: City Council Redistricting -Introduction of Ordinance, dated July 9, 2001 Page 16 departments/agencies to City Clerk, such as election information and various governing documents relating to Sunset Beach such as contracts, deeds, and recorded documents. ^ City Attorney: Additional attorney efforts will be required to ensure proper coordination of the transfer of duties and responsibilities from various County departments/agencies to the City, such as various governing documents relating to Sunset Beach: ^ General governing documentation; ^ Tax transfer agreements; ^ Local Coastal Plan documentation; ' ^ Zoning provisions; ^ Building permit and subdivision approval documents; and ^ Other applicable governing documents to be identified. ^ Administrative Services: Increased costs for various business license, parking permit, and other financial control matters within the Sunset Beach area. Additional staff efforts will be required to ensure proper coordination of the transfer of duties and responsibilities from various State and County departments/agencies to Administrative Services, such as Franchise Tax Board, etc. ^ Risk Management: Increased costs for various risk management matters within the Sunset Beach area. Additional staff efforts will be required to ensure proper coordination of the transfer of duties and responsibilities from various State and County departments/agencies to Risk Management, such as insurance, claims administration, liability, worker's compensation, etc. At this time staff is unable to quantify any potential cost increases to City risk management, property insurance, liability insurance, and worker's compensation costs. ^ Public Safety -Police: Increased costs for provision of police services to the Sunset Beach community. Please note that the following information should not be construed as a final cost determination for any additional Police services or facilities that would be required to accommodate an annexation process. It should be considered a best available preliminary presentation of the potential staffing needs of the Police Department to provide appropriate Police services to the Sunset Beach community. Any final staffing determinations will require additional study and ultimately a recommendation from the City Manager and Chief of Police to the City Council. Page 17 LAFCO "County Island Data Matrix -Sunset Beach -Data Year 2008/2009" Sheriff Services Costs: As indicated in the LAFCO "County Island Data Matrix -Sunset Beach - Data Year 2008/2009" document, the estimated costs for Sheriff Services is $1,198,524.00 based on either a calls for service ratio of total unincorporated territory within the applicable servicing Division applied to the calls for service in the island, or on County Unincorporated Per Capita applied to island population. As is also, indicated on page 2 of the LAFCO Report: "Traffic enforcement in Sunsef Beach is currently a function of the California Highway Patrol although with budget cuts at the state level, the CHP is sometimes unable to respond promptly." The indicated amount for Sheriff Services equates to a per capita cost of approximately $977.00 for County Sheriff services, which seems to be a very high cost per person for services. Seal Beach Poiice Services Budget Information: The total General Fund expenditures for Police Services for the City of Seal Beach is currently budgeted at the following amounts: Field Services FY 2009-2010 $6,149,700 FY 2010-2011 $6,358,400 Police Support Total $2,498,700 $8,648,400 Police Service Costs on aPer-Capita Basis: $2,748,300 $9,106,700 In order to provide another estimate of Police service costs to Sunset Beach, provided below is aper-capita cost for the current level of police services as provided to the residents of Seal Beach utilizing an estimated average population of 25,740 persons for Seal Beach based on the average of the last four years estimated population by the California Department of Finance, Demographic Research Unit: FY 2009-2010 FY 2010-2011 Total Police Services $8,648,400 $9,106,700 Estimated Population 25,740 25,740 Police Services Cost Per Capita $ 336.00 $ 354.00 Sunset Beach Population (Est) 1,227 1,227 Police Services Cost - Sunset $ 412,272 $ 434,358 Beach Note: The estimated population for Suns et Beach is as set forth in the LAFCO Staff Report, July 8, 2009 Page 18 Summary of Police service concerns and costs: The residents of Seal Beach currently enjoy a response of less than 4 minutes for Priority One (emergency) calls for service. It is reasonable to assume that it would add substantial response time for a patrol officer to respond from the City's southern border if the border changed from Surfside to a new southern border of PCH and Warner Ave. At present, the police department is able to maintain a 35% "available time" rate wherein officers are able to provide high visibility patrol to deter crime as well as identify problem areas within the community. At current staffing levels, the addition of calls for service and policing needs of the Sunset Beach community would lessen the "available time" for officers. Currently, the Seal Beach Police Department maintains a patrol staffing minimum of three patrol officers and one supervisor, accomplished by staffing 19 patrol officers. It is proposed that providing police service to Sunset Beach would require augmenting the current deployment levels. To accomplish this augmented deployment level, as well as maintain the current level of services enjoyed by Seal Beach residents, it is proposed that initially two sworn officers be added to the Police Department's staff. Staff would prepare an evaluation of the impacts of this deployment level within 12 months and at that time may wish to explore alternative service mechanisms, e.g., 960-hour retiree re-hires, as a way to provide cost- effective services if determined necessary. Parking enforcement needs in Sunset Beach will need further study. Parking enforcement personnel costs are generally exceeded by parking violation fine revenues produced. Initial Police Personnel Deployment: Based on the preliminary fiscal analysis presented in this Agenda Report, the best estimates of potential Police Department service costs for Sunset Beach to maintain fiscal neutrality would be as follows: Police Service Costs - Patrol Personnel and Overhead (Includes 2 sworn officers and all overhead costs) Total Estimated Annual Costs Police Service Costs - Initial Year Capital Costs (Includes new patrol vehicle, equipment, uniforms, etc.) $ 374,500 $ 374,500 $ 50,000 - $ 70,000 Note: Initial Year Capital Costs not included in overall fiscal analysis, as these costs represent aone-time, start-up cost of providing services. Page 19 ^ Public Safety -Fire: Seal Beach and Sunset Beach both receive fire services through Orange County Fire Authority (OCFA). Please refer to the discussion regarding Fire Services on pages 4 and 5. Seal Beach is a "Cash Contract" city with OCFA, and it has been determined that a potential annexation of Sunset Beach would not result in any changes to the current contract provisions. Section 5, Annexations, of the Seal Beach Fire Services and Emergency medical Services Agreement, dated July 27, 2000 states: "5. Annexations. In the event of any City annexation of territory within the Structural Fire Fund, the level of Structural Fire Fund~and redevelopment revenues existing at the time of the annexation shall continue to pass through to OCFA as compensation for the services provided pursuant to the Amended Joint Powers Agreement, unless otherwise agreed to by the parties hereto. As used herein, "level of Structural Fire Fund and redevelopment" shall mean the amount of such revenues existing at the time of annexation, adjusted by any diminution or growth in value occurring thereafter. It is the intent of the parties that City annexations do not have an adverse financial effect on OCFA. Annexations that do not result in additional OCFA service demand and, therefore require no additional OCFA resources, will not result in additional charges as a result of said annexation." The City and OCFA would enter into a "side agreement" to pass-through to OCFA the "Structural Fire Fund Property Tax" revenues that are currently being assessed to properties located within Sunset Beach. This is a similar process to what has recently occurred with the City of Tustin, also a "Cash Contract" city that has recently annexed some unincorporated county islands.5 The LAFCO Report indicates Sunset Beach contributes $350,731.00 to OCFA from the "Structural Fire Fund Property Tax" that is based on an actual calculation based on the assessed valuations of the Assessor Parcel Numbers within the Sunset Beach unincorporated area. Staff has been able to confirm that Orange County Fire Authority will continue to contract with Huntington Beach for Life Support Services to the Sunset Beach area if Sunset Beach is annexed to Seal Beach. ^ Planning: Increased costs for provision of various planning-related activities and actions within the Sunset Beach area. Additional staff efforts will be required to ensure proper coordination of the transfer of duties and responsibilities from various State and County departments/agencies to Planning, such as discretionary land use approvals, Local Coastal Plan approvals, previous County planning actions that impact projects in s Telephone Communication with Dennis Sorenson, Orange County Fire Authority, July 20, 2009. Page 20 Sunset Beach, etc. It would be anticipated that future discretionary project application processing costs would be offset by application fees. Special Event Permits: Seal Beach has an existing process for the review and approval of "Special Events." Sunset Beach has a long history of community activism and participation in many community events. There will need to be further investigation conducted regarding the current review and authorization process for the on-going community events that occur in Sunset Beach. ^ Building: Increased costs for building-related activities and actions within the Sunset Beach area. Additional staff efforts will be required to~ensure proper coordination of the transfer of duties and responsibilities from various State and County departments/agencies to Building, such as building and other construction-related permit records, previous County building actions that impact projects in Sunset Beach, etc. It would be anticipated that future construction project application processing and inspection costs would be offset by the standard building application fees of the City. ^ Public Works: Increased costs for public works-related activities and actions within the Sunset Beach area. Additional staff efforts will be required to ensure proper coordination of the transfer of duties and responsibilities from various State and County departments/agencies to Public Works, such as necessary road and other public improvement plans, and previous County actions that impact projects in Sunset Beach, etc. The LAFCO Report indicates the following regarding public improvements within Sunset Beach: ^ County Maintained Centerline Road Miles: 3.98 ^ County Maintained Local Drainage Channels (Miles): 0.50 ^ County Operated and Maintained Traffic Signals: 6 shared ^ County Operated Street Lights: 102 ^ Road Infrastructure Rehabilitation Costs: $24,312.00 (Intentionally Left Blank) Page 21 Further, the LAFCO report includes the following revenue and expenditure information related to "Road Related Restricted Revenues" and "Road Maintenance & Related Expenditures": Road Related Restricted Revenues Amount Gasoline Taxes S & H Section 2104 $127,462 S & H Section 2105 $ 59,808 S & H Section 2106 $ 3,210 Measure M Local Turnback $ 28,174 ** Prop 42 (TCRF) - 0 - Total $218,654 Road Maintenance & Related Amounf Expenditures Routine Road Maintenance General Right-of-Way Maintenance $ 96,761 Traffic Signal Operations/Maintenance $ 6,000 Street Light Operations/Maintenance $ 15,740 Street Sweeping $ - 0 - ** Median & Right-of-Way Landscape Maintenance _ 0 _ Total $118,501 Countywide per capita applied to island population ** Actual from sales tax revenue generation from accounts within the island In discussions with County representatives it has been determined that current public improvement projects ongoing in Sunset Beach will be completed in accordance with the approved contracts for those improvements by the County of Orange. It has also been indicated the current Rule 20A and Rule 20B undergrounding of utility lines within Sunset Beach will be completed as scheduled by the County of Orange and Southern California Edison. City staff has not been able to identify any current capital improvement projects in preparation or planned for Sunset Beach by the County of Orange. It is uncertain at this point in time as to the need for along-range capital improvement projects that might be necessary for the maintenance and upgrading of existing roads, storm drains, and other public improvements in Sunset Beach. Page 22 The Public Works Department recommends that the annexation agreement provide that the City of Seal Beach require all public works facilities be inspected and brought to be in a state of good repair (as determined by the City Engineer) before acceptance by the City of Seal Beach. ^ Community Services: Increased costs for provision of various community service-related activities and actions within the Sunset Beach area. Additional staff efforts will be required to ensure proper coordination and marketing of recreation program activities within Sunset Beach. It would be anticipated that the increased programming and staff costs would be offset by class recreation fees. ^ Marine Safety: Increased costs due to the provision of additional lifeguard personnel, lifeguard tower facilities, and support vehicles and equipment to provide the appropriate level of public safety response capabilities for an additional 1.2 miles of public beach between Surfside and Bolsa Chica State Park. Please note that the following information should not be construed as a final cost determination for any additional Marine Safety services or facilities that would be required to accommodate an annexation process. It should be considered a best available preliminary presentation of the potential staffing needs of the Marine Safety Department to provide appropriate Marine Safety services to the Sunset Beach community. Any final staffing determinations will require additional study and ultimately a recommendation from the City Manager and Lifeguard Chief to the City Council. Provided below is an estimate of costs to provide lifeguard services to the Sunset Beach area, assuming the same general staffing and support services as is currently provided by the Lifeguard Department for Seal Beach and Surfside: Ongoing Operational Costs Cost Item Estimated Service Provision Cost Revenue Neutral O timal Dep/oyment Dep/oyment Wages (1 Full-time, 10 Part- $287,000 time Lifeguards) Wages (2 Full-time, 10 Part- $350,600 time Lifeguards) Operations and Overhead $ 20,000 $ 20,000 Total Operational Costs $307,000 $370,600 Page 23 Similar to the suggestion regarding Police Services, Staff would prepare an evaluation of the impacts of the determined deployment level within 12 months and at that time may wish to explore modifications to the determined service level provided, if determined necessary. Start-Up Costs Cost Item Towers - 5 @ $ 11,000 Tower Outfitting - 5 C~ $1,000 Communications - 7 800mghz radios @ $ 6,000 each Training - 10 new Lifeguards New Lifeguard Truck - Acquisition and Equipping Total Start-Up Costs Estimated Service Provision Cost $ 55,000 $ 5,000 $ 42,000 $ 10, 000 $ 30,000 $142,000 ^ Redevelopment A9ency: No impact as Sunset Beach is not within a redevelopment project area. FINANCIAL IMPACT: Overview of LAFCO Processing: If the City initiates annexation through adoption of a resolution, the City would be the lead agency and responsible for preparation of associated environmental and other required submission documents. Routine annexations (in particular built- out areas) generally involve a negative declaration, not an Environmental Impact Report. If residents initiate a proposed annexation, LAFCO would be responsible for preparation of the environmental documents; however, these costs are then the responsibility of the applicant. Application costs associated with the reorganization/sphere of influence amendment/annexation application, as currently identified by Staff, would include: ^ application preparation; ^ legal and application fees; ^ updated fiscal impact analysis; ^ environmental document preparation; ^ "pre-zoning" process; Page 24 ^ General Plan amendments; and ^ required public notices/public hearings. For purposes of annexing Sunset Beach to Seal Beach, the area is not technically defined as an island. The Commission has previously ~ agreed to waive some annexation fees associated with the small unincorporated areas and the City may request some or all fees be waived. LAFCO staff routinely opposes waiving of any fees and the Commission generally grants fee waiver requests for municipalities. In preliminary discussions with LAFCO Staff the following financial obligations have been identified in order to submit a complete "Project Application Form" for the change of the Reorganization/Sphere of Influence for Seal Beach to also include Sunset Beach and to then annex Sunset Beach: ^ Change of Organization Application: $ 7,900 Initial Deposit ^ Public Noticing: ^ CEQA Compliance: ^ State Controller Costs: $ 100 Admin Fee + actual costs based on Government Code § 56661 requirements Actual Costs None expected for this type of application ^ Special Legal Counsel Costs: ^ LAFCO Staff Costs: Actual Cost @ $173/hour Actual Cost @ $ 95/hour In addition to the identified Initial Deposit and Administration Fees, LAFCO also requires submission of an executed "Indemnification Agreement" as part of the "Project Application Form" submittal. A copy the "Project Application Form," including the "Indemnification Agreement" is provided as Attachment E for the information of the City Council. In addition to the identified costs above, it is anticipated that there will be significant staff time necessary for City Attorney, City Manager, and appropriate Department personnel to compile the necessary documentation to complete the "Project Application Form" and all supporting actions that will be required, including legal and application fees, updated fiscal impact analysis, environmental document preparation, "pre-zoning" process, General Plan amendments, and required public notices/public hearings. It is not possible to provide an estimate of those costs at this time. Page 25 Summary -Preliminary Fiscal Review of Annexation of Sunset Beach: As has been indicated above, the following are current Staff estimates of anticipated ongoing revenues and expenditures if Sunset Beach were to be annexed: SUMMARY -PRELIMINARY FISCAL REVIEW. REVENUE NEUTRAL POLICE/MARINE SERVICES DEPLOYMENT Total General Fund Revenues Total General Fund Expenditures - No Police or Marine Safety Services General Fund Expenditures -Police Services (Includes 2 sworn officers and all overhead costs) General Fund Expenditures - Marine Safety Services (Includes 1 Full-time and 10 Part-time Lifeguards and all overhead costs) Total General Fund Expenditures IVet General Fund Revenues/Expenditures 1 105 873 $ 360,750 $ 374,523 $ 307,000 1 042 273 $ 63, 600 SUMMARY -PRELIMINARY GENERAL FUND FISCAL REVIEW. OPTIMAL POLICE/MARINE SERVICES DEPLOYMENT Total General Fund Revenues Total General Fund Expenditures - No Police or Marine Safety Services General Fund Expenditures -Police Services (Includes 3 sworn officers and 1 detective; and all overhead costs) General Fund Expenditures - Marine Safety Services (Includes 2 Full-time and 10 Part-time Lifeguards and all overhead costs) Total General Fund Expenditures Net Revenues/Expenditures 1 105 873 $ 360,750 $ 758,000 $ 370,600 $1,489,350 ($ - 383,477) Page 26 Identified Additional First Year Start Up Costs: Police Departmenfi New patrol vehicle, equipment, uniforms, etc: $ 50,000 - $ 70,000 Marine Safety: Cost Item Towers - 5 @ $ 11,000 Estimated Service Provision Cost Tower Outfitting - 5 @ $1,000 Communications - 7 800mghz radios @ $ 6,000 each Training - 10 new Lifeguards New Lifeguard Truck Acquisition and Equipping Total Start-Up Costs $ 55,000 $ 5,000 $ 42,000 $ 10,000 $ 30, 000 $142,000 Total Identified Additional First Year Start Up Costs: $ 192,000 - $212,000 It is to be noted that the "Preliminary Fiscal Review" has not been reviewed by a fiscal impact consultant, and that step would be recommended if the City Council decides to pursue the change to the Seal Beach Sphere of Influence and annex Sunset Beach. POSSIBLE CITY COUNCIL ACTIONS: 1) Option 1: Adopt RESOLUTION NUMBER 5908, A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEAL BEACH, CALIFORNIA, MAKING APPLICATION TO AND REQUESTING THE LOCAL AGENCY FORMATION COMMISSION OF ORANGE COUNTY TO TAKE PROCEEDINGS PURSUANT TO THE CORTESE-KNOX-HERTZBERG LOCAL GOVERNMENT REORGANIZATION ACT OF 2000 FOR THE CITY OF SEAL BEACH TO PLACE APPROXIMATELY 84 ACRES OF PROPERTY GENERALLY KNOWN AS SUNSET BEACH WITHIN ITS SPHERE OF INFLUENCE, AND FILE ANNEXATION 2009-01. (Draft Resolution provided as Attachment A) Also: ^ Authorize City Manager and City Attorney to take all necessary actions to accomplish the completion of all necessary applications and processing materials with the Local Agency Formation Commission of Orange County to initiate this annexation process; Page 27 ^ Authorize the City Manager and City Attorney to enter into negotiations with the County of Orange regarding the exchange of property tax revenue generated; and ^ Instruct the City Manager to provide a Status Report at a future City Council Meeting, including any necessary Budget Amendments that may be required for costs associated with application preparation, including legal and application fees, environmental document, and required public notices/public hearings; or 2) Option 2: Provide additional direction to staff and City Attorney based on Council discussion; or 3) Option 3: Receive and File this Staff report. RECOMMENDATION: After deliberation by City Council, provide direction to City Manager and City Attorney regarding any desired City actions relative to the possible annexation of Sunset Beach into Seal Beach. SUBMITTED BY: _~~~~G e Whittenberg Director of Development Servi s NOTED AND APPROVED: ®-~'`y p David Carmany City Manager Attachments: (5) A. Resolution No. 5908 B. LAFCO Resolution Amending the Sphere of Influence for the City of Huntington beach to Include the Unincorporated Community of Sunset Beach (SOI 09-04) and Reconfirming the MSR Determination for the City of Huntington Beach (MSR 09-03), adopted July 8, 2009 C. LAFCO Staff Report re: Proposed Sphere of Influence Review for the City of Huntington beach (SOI 09-04) and Reconfirmation of Municipal Service Review Determinations (MSR 09-03), including Exhibits, and LAFCO Staff Report Attachment 4, dated July 8, 2009 D. "County Island Data Matrix -Sunset Beach -Data Year 2008/2009," from LAFCO Staff Report re: Proposed Sphere of Influence Review for the City of Huntington Beach (SOI 09-04) and Reconfirmation of Municipal Service Review Determinations (MSR 09-03), dated July 8, 2009 E. Local Agency Formation Commission of Orange County "Project Application Form," including "Indemnification Agreement" Page 28 ATTACHMENT A RESOLUTION NUMBER 5908, A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEAL BEACH, CALIFORNIA, MAKING APPLICATION TO AND REQUESTING THE LOCAL AGENCY FORMATION COMMISSION OF ORANGE COUNTY TO TAKE PROCEEDINGS PURSUANT TO THE CORTESE-KNOX- HERTZBERG LOCAL GOVERNMENT REORGANIZATION ACT OF 2000 FOR THE CITY OF SEAL BEACH TO PLACE APPROXIMATELY 84 ACRES OF PROPERTY GENERALLY KNOWN AS SUNSET BEACH WITHIN ITS SPHERE OF INFLUENCE, AND FILE ANNEXATION 2009-01 RESOLUTION NUMBER 59OH A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEAL BEACH, CALIFORNIA, MAKING APPLICATION TO AND REQUESTING THE LOCAL AGENCY FORMATION COMMISSION OF ORANGE COUNTY TO TAKE PROCEEDINGS PURSUANT TO THE CORTESE-KNOX-HERTZBERG LOCAL GOVERNMENT REORGANIZATION ACT OF 2000 FOR THE CITY OF SEAL BEACH TO PLACE APPROXIMATELY 84 ACRES OF PROPERTY GENERALLY KNOWN AS SUNSET BEACH WITHIN ITS SPHERE OF INFLUENCE, AND FILE ANNEXATION 2009-01 WHEREAS, Sunset Beach is a one-mile stretch of unincorporated land located south of the Surfside community of Seal Beach located along pacific ' Coast Highway; and WHEREAS, Sunset Beach is a 100-year old community made up of residents who share a passion for the beach and exhibit independence and ingenuity in protecting their treasured community, and WHEREAS, Sunset Beach residents like the community the way it is and wish to maintain its identity in the future; and WHEREAS, Sunset Beach residents, when asked to indicate a preference between Huntington Beach and Seal Beach, indicated a preference for Seal Beach, and WHEREAS, the County of Orange has indicated a strong interest in divesting itself of the duty to provide urban services to unincorporated county islands; and WHEREAS, the Local Agency Formation Commission of Orange County has recently placed Sunset Beach within the Sphere of Influence of the City of Huntington Beach; and WHEREAS, the City of Seal Beach ("City') desires to initiate proceedings pursuant to the Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000, Division 3, commencing with Section 56000 of the Government Code, for the annexation of unincorporated territory to the City; and WHEREAS, the City will file an application with the Local Agency Formation Commission to amend the City's Sphere of Influence to include the unincorporated territory set forth in Exhibit A, attached hereto and by this reference incorporated herein; and WHEREAS, the City will file an application with the Local Agency Formation Commission to annex the unincorporated territory set forth in Exhibit A, attached hereto and by this reference incorporated herein; and WHEREAS, these proposed proceedings are subject to the following terms and conditions: the amendment to the City's Sphere of Influence and the annexation of the unincorporated territory set forth in Exhibit A shall be consistent with Government Code Section 56886 and other applicable law existing as of the date of the filing of this Resolution; and WHEREAS, the reasons for this proposed amendment to the City's Sphere of Influence and the annexation of the unincorporated territory set forth in Exhibit A are as follows: to increase the economy and efficiency of government services as well as coordination of urban planning efforts and enhancement of community identity; and Resolution Number 5908 WHEREAS, California Revenue and Taxation Code 99 allow cities and counties to adopt and approve property tax exchange agreements to set forth the exchange of such revenues following the addition to a city of previously unincorporated territory; and WHEREAS, the City and the County of Orange have agreed to enter into negotiations regarding the exchange of property tax revenue generated. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SEAL BEACH DOES HEREBY RESOLVE: Section 1. The City Council of the City of Seal Beach does hereby approve this Resolution of Application and requests the Local Agency Formation Commission of Orange County to take proceedings for the amendment of the City's Sphere of Influence to include the unincorporated territory and to annex said unincorporated territory, as set forth in Exhibit A, attached hereto and by this reference incorporated herein by this reverence, in the manner provided by the Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000. Section 2. The City Council of the City of Seal Beach does hereby authorize the preparation of all necessary and required documents by City staff to submit to the Local Agency Formation Commission of Orange County to amend the City's Sphere of Influence to include the unincorporated territory and to annex said unincorporated territory, as set forth in Exhibit A, attached hereto and by this reference incorporated herein by this reference. Section 3. The City Council of the City of Seal Beach does hereby authorize the City Manager and City Attorney to enter into negotiations with the County of Orange regarding the exchange of property tax revenue generated. PASSED, APPROVED AND ADOPTED by the City Council of Seal Beach, at a meeting hereof held on the 10th day of Auaust , 2009 by the following vote: AYES: COUNCILMEMBERS NOES: COUNCILMEMBERS ABSENT: COUNCILMEMBERS ABSTAIN: COUNCILMEMBERS ATTEST: Mayor City Clerk STATE OF CALIFORNIA } COUNTY OF ORANGE } SS CITY OF SEAL BEACH } I, Linda Devine, City Clerk of the City of Seal Beach, California, do hereby certify that the foregoing resolution is the original copy of Resolution Number 5901 on file in the office of the City Clerk, passed, approved, and adopted by the City Council of the City of Seal Beach, at a regular meeting held on the 10th day of Auaust , 2009. City Clerk e - ` - Y ~ S t _ M - . Y. ~j'- - - ~ ~ YS-eal- ~Bea-ch:a ~-~- ~Sea.l- :Beach - .. ~s :' EXHIBITA Huntington Beach ~ Sunset Beach ~~e ~'~ ~.6 0 0.05 0.1 0.2 0.3 0.4 - - Miles Huntington Beach Seal Beach I~ Unincorporated Map 6y Grant T. (AUgus12go9) Vicinity iVlap N Unincorporated Sunset Beach Page 30 ATTACHMENT B LAFCO RESOLUTION AMENDING THE SPHERE OF INFLUENCE FOR THE CITY OF HUNTINGTON BEACH TO INCLUDE THE UNINCORPORATED COMMUNITY OF SUNSET BEACH (SOI 09-04) AND RECONFIRMING THE MSR DETERMINATION FOR THE CITY OF HUNTINGTON BEACH (MSR 09-03), ADOPTED JULY 8, 2009 ICES®I.IJTI®A1®F TIDE I,®C~ AGEI~TCY ~®It1VIATI®I~T C®1~IVII3SI®I~i ®I• ®Id~NGE C®LTIVTY, CAI.II' ®IPNIA 1~I~I1~G I)ETEI~PTATI®l~TS ANTI) Al~1~TI)I1~TG THE SPI$EI~ ®I' III' I'I..I~IVCE F'®It 'T~ CITY ®~' HI~i'I'INGT'®N ~EAC~ T® I1~TCI.,I~E TIIE ITIVII~TC®IIIn®~ATEH) C®~ITY ®F 3~T3ET ~EACI~ (3®I 09-04) A1~tI~ I~EC®1~TEI12I~III~TG TIIE 1VISI~ IDE'I'EId1~IIAIATI®loT3 ]F®IS TIC CI~CY ®I{ ~II1~TIrTGT®1~T ~EACIi (IVI3IS 09-03) duly ~, 2009 On motion of Commissioner Peter Herzog, duly seconded and carried, the following resolution was adopted: WHEREAS, California Government Code Section 56425 requires that a Locai Agency Formation Commission ("LAFCO") adopt Spheres of Influence for all agencies in its jurisdiction and to update those spheres every five yeazs; and WHEREAS, the Sphere of Influence is the primary planning tool for LAFCO and defines the probable physical boundaries and service azea of a local agency as determined by LAFCO; and WHEREAS, proceedings for adoption, update and amendment of a Sphere of Influence are governed by the Cortese-Knox-Hertzberg Local Government Reorganization Act, Section 56000 et seq. of the Government Code; and WHEREAS, the Executive Officer, pursuant to Government Code Section 56427, set July 8, 2009 as the hearing date on this Sphere of Influence review proposal and gave the required notice of public hearing; and WHEREAS, the Executive Officer, pursuant to Government Code Section 56428, has reviewed this proposal and prepared a report, including her recommendations thereon, and has furnished a copy of this report to each person entitled to a copy; and ;' WHEREAS, the proposal consists of an update to current sphere of influence designation for the City of Huntington Beach and a reconfirmation of the Municipal Service Review determinations; and WHEREAS, this Commission called for and held a public hearing on the proposal on July 8, 2009, and at the hearing this Commission heard and received all oral and written protests, objections and evidence which were made, presented br filed, and all persons present were given an opportunity to hear and be heard with respect to this proposal and the report of the Executive Oi~icer; and WHEREAS, this Commission considered the factors determined by the Commission to be relevant to this proposal, including, but not limited to, factors specified in Government Code Section 56841; and WHEREAS, LAFCO, as the lead agency under CEQA (California Environmental Quality Act) for sphere of influence reviews, determined that adoption of the sphere of influence for the City of Huntington Beach is exempt from CEQA under CEQA Guidelines Section 21056. NOW, THEREFORE, the Local Agency Formation Commission of the County of Orange DOES HEREBY RESOLVE, DETERMINE AND ORDER as follows: Section 1. Environmental Action: LAFCO, as the lead agency, has detenmined that adoption of the sphere of influence is exempt from CEQA under CEQA Guidelines Section 21056. Section 2. Determinations: a) The Commission has adopted the accompanying Statements of Determination for the City of Huntington Beach shown as "Exhibit A." b) The Commission has amended the City of Huntington Beach's sphere of influence to include the unincorporated community of Sunset Beach as shown on the attached map labeled "Exhibit B." c) The Commission has reconfirmed the existing Municipal Service Review determinations for City of Huntington Beach shown as "Exhibit C." Section 3. This sphere review is assigned the following distinctive short-form designation: "Sphere of Influence Update for the City of Huntington Beach (SOI 09-04)". Section 4. The Municipal Services Review reconfirmation is assigned the following distinctive short-form designation: "MSR Reconfirmation for the City of Huntington Beach (MSR 09-03')". Section 5. The Executive Officer is hereby authorized and directed to mail copies of this resolution as provided in Section 56882 of the Government Code. AYES: CHAIR SUSAN WILSON, VICE CHAIR PETER HERZOG, COMMISSIONER CHERYL BROTHERS, COMMISSIONER ARLENE SCHAFER NOES: COMMISSIONER BILL CAMPBELL, COMMISSIONER JOHN MOORLACH, COMMISISONER JOHN WITHERS STATE OF CALIFORNIA ) SS. COUNTY OF ORANGE I, SUSAN WILSON, Chair of the Local Agency Formation Commission of Orange County, California, hereby certify that the above and foregoing resolution was duly and regulazly adopted by said Commission at a regulaz meeting thereof, held on the 8th day of July 2009. IN WITNESS WHEREOF, I have hereunto set my hand this 8~' day of July 2009. SUSAN WILSON Chair of the Orange County Local Agency Formation Commission n /~ By' ~'Sw.! t! a~~7~1y~r~. 4 ~ L ~ ` PCJ Susan Wilson Page 31 ATTACHMENT C LAFCO STAFF REPORT ~ RE: PROPOSED SPHERE OF INFLUENCE REVIEW FOR THE CITY OF HUNTINGTON BEACH (SOI 09-04) AND RECONFIRMATION OF MUNICIPAL SERVICE REVIEW DETERMINATIONS (MSR 09-03), INCLUDING EXHIBITS, AND LAFCO STAFF REPORT ATTACHMENT 4, DATED JULY 8, 2009 .1 f 4p'•~'S.f sr 1 4%a ~; ~i ~p A I ~ ~ `• '' ' LOCAL AGENCY FORMATION COMMISSION ORANGE COUNTY 8a cHAIR SUSAN WILSON Represenmtfve of General Publx VICE CHAIR PETER FiER7.OG Counaimember Criy of lake Forest July 8, 2009 TO: FROM: Local Agency Formation Commission Executive Officer Assistant Executive Officer C}~ERYL BROTttERS SUBJECT: Proposed Sphere of Influence Review for the City of Huntington e«,nt9member Beach (SOI 09-04) and Reconfirmation of Munici al Service ~ ~ Frz~nm~, ~~ Review Determinations (MSR 09-03) p B1LL CAMPBELL S~ervisor 3 D~ JOHN MooRLACa-, BACBGItOUIVID ~D~ The Ciry of Huntington Beach's current sphere of influence (SOT) was originally adopted in 1973. It was reviewed by LAFCO again in 1989 and most recently in ARLENE scFU-FEtt 2006. Consisting of approximately 19,359 acres, the City's sphere of influence o~ resa includes the existing city limits and one adjacent unincorporated area -the Bolsa ~"1°'~' °~"t Chica Ecological Reserve (approximately 1,588 acres). A map of the City's ~~ Wr~ERS current SOI is included as Exhibit 1 to this report. Director lrvkie Ranch Water Distri¢ ~ the March 2006 City of Huntington Beach SOI update, staff recommended that „~.,~,,,p,.,~ the unincorporated community of Sunset Beach be included within the City of PAT BATES Huntington Beach SOI. The Commission decided to leave Sunset Beach out of s^ ~or the City of Huntington Beach's sphere at that time. Sunset Beach and portions of Southern Orange County are the only areas in the County NOT within a sphere of A`~""'~ PATSY MARSFiAIt, influence. Cotmo7member ~ ~ ~~ ~~ SUNSET' BEACH ALT+~~TE Sunset Beach is a small, unincorporated beachfront community of approximately RHONDA MCCUNE Represer~tive a g4 acres bisected b Pacific Coast Hi wa rIl the northwest Huatin Y ~ Y ~ gton Beach General Public area (see Exhibit 2). The community is home to approximately 1,227 residents. ~. . Sunset Beach is surrounded by the City of Huntington Beach on the south and ~ ~ cw-RLEY1MLSON east. Immediately north of Sunset Beach is the gated community of Surfside, Director Sans Margariro .. • which is located in the City of Seal Beach. To the west of Sunset Beach is the War °atrict Pacific Ocean. The community is predominantly residential in nature although it JOYCE CROSniwarrE also includes varied commercial development along Pacific Coast Highway. Executive Officer Sunset Beach retains the small town feel of beach towns from generations ago , and long-time residents work hard to maintain their community's unique identity. i 2 Civic Center Plaza, Room 235, Santa Ana. CA 92701 (714) 8342556 • FAX (714) 8342643 http-//vvvvw.ociafco.org July 8, 2009 RE: City of Huntington Beach SOI/MSR Review Page 2 ANALYSIS The Municipal Service Review (MSR) for the Los Alamitos, Seal Beach, Rossmoor and Sunset Beach area (completed in Mazch 2005) recognized that local governments at all levels were experiencing considerable stress as they tried to maintain municipal services while struggling with growth and development, dynamic economic conditions and the continued reduction or shifting of revenues due to the State's budget difficulties. The MSR process was ayear--long, stakeholder-driven process guided by a professional facilitator. In the four years since the completion of that report, economic conditions at the State and local government levels have further deteriorated. The State is currently facing a budget shortfall exceeding $24 billion and will no doubt look to local goven~unents to help close that gap even as California cities and counties struggle with their own declining sales and property tax revenues. More locally, the County of Orange is also implementing major budget cutbacks in many depaztments, including the OC Sheriff, to try to balance its own significant budget shortfall. Fifteen years ago, the County began to refocus its efforts on the provision of regional, countywide services and leave the provision of municipal level services to cities. Continued County provision of services to unincorporated islands such as Sunset Beach may no longer make economic sense given today's fiscal reality. The pinch of declining revenues will negatively affect service provision on both a state and local level. However, some Sunset Beach residents would still prefer to be excluded from any city's SOI and would prefer reduced services to annexation. Annexation is seen as a threat to their community's identity. .~~ One specific example of how service levels may be affected in unincorporated islands such as Sunset Beach relates to fire protection services. Sunset Beach is currently served by the Orange County Fine Authority (OCFA). Within Sunset Beach there is an OCFA Fire Station manned by reserve (volunteer) personnel. The station houses OCFA Engine #3. In 2008, 51 calls were received by the Sunset Beach station requiring a fire engine unit. Of the S1 calls, there were only two instances in which the necessary qualified Reserve Firefighters arrived to staff Engine #3.1 The City of Huntington Beach, which has a fire station located approximately 800 feet from Sunset Beach on Warner Avenue, is generally the first responder to calls in Sunset Beach requiring fire engine/paramedic assistance. Since 2004, OCFA has contracted with the City of Huntington Beach to provide Advance Life Support (paramedic) services to the Sunset Beach area. Another service, police protection, is contently provided by the Orange County Sheriff Department (OCSD) in the Sunset Beach area. Sunset Beach is part of OCSD's "North Operations Service Area" which shares coverage.with the unincorporated areas of Anaheim and Rossmoor. Traffic enforcement in Sunset Beach is currently a function of the California Highway Patrol although with budget cuts at the state level, the CHP is sometimes unable to respond promptly. ' OCFA Board of Directors Report, `Reserve Firef ghter Program", May 28, 2009 July 8, 2009 RE: City of Huntington Beach SOUMSR Review Page 3 Both the City of Huntington Beach, located immediately adjacent to Sunset Beach on the east and south; and Seal Beach, located directly north of Sunset Beach, have their own police and traffic control departments. In the long-term, there maybe opportunities for increased service efficiencies in both fire and law enforcement protection for Sunset Beach through annexation to a city. The State has long recognized the inefficiency of counties providing municipal services to unincorporated islands and now permits small islands (150 acres or less in size) that are located within a city's sphere of influence to be annexed without resident protest (Government Code §56375.3). Placing Sunset Beach in the sphere of influence of Huntington Beach identifies the City as the logical, long-term service provider. However, identifying a sphere of influence for Sunset Beach neither guarantees nor requires annexation. It does create an opportunity for Sunset Beach residents and Huntington Beach elected officials and staff to begin a formal dialog on options for protecting community interests should annexation ever occur. iJnincorporated Island Fiscal Model The County's budget is developed on a countywide basis and does not currently separate out individual revenues and costs by unincorporated area. As part of LAFCO's Unincorporated Islands Program, staff contracted with the economic consulting firm of Winzler & Kelly to develop a pilot fiscal model that can identify County revenues and expenditures for individual County islands without placing additional burdens on the County staff. Staff believes that this tool, if we move forward, will be helpful to the _. ~ County and to cities in estimating service costs and revenues for specific unincorporated areas. The fiscal model was developed by the fiscal consultant with the assistance of LAFCO and County staff, including representatives from the Sheriff, Library, Planning, Parks, Public Works, Auditor-Controller and CEO departments. The complete fiscal model results for Sunset Beach are included as Attachment 1 and are summarized below: %w+;~`W-•y~'~ '~~y,•ti .~[~ 3i`-`LrS. ~'»f: ;i•~-~~.~...`"~.•: e:i w~rc:~-.?rte s S"~t•. ..y,.t~o~e4al~-y'~(`.t. ~•• D.. Alf m .F C F:li~QfraauW,n£ar'.+~''~SB ' •.7.'~;i-9REw.r e4'i (..- ~ ~ i.Lih~:o4 ~7:3L .s. l:- lJ•':. ,,: e~.•'.~~G''+ealeR.' Rd`:i.~L:,'" g~M"`85:' X 'p~ D..~w y~ per, t~A 71`~i~F'~i.~viau~(aJ ~L~~a,~.,!h'~ ,;;. General Fund 701,419 1,237,023 (535;604) Road Restricted 218,654 118,501 ~ 100,153 Other Munici al 729,070 Not Available General Fund revenues and expenditures include all unrestricted revenues and expenditures from the County General Fund. Road Restricted revenues and expenditures include revenues restricted for road maintenance pu-poses and expenditures only. Other - - - Municipal revenues include revenues from sources and services that maybe provided by SDeCla1 diStrlCts, joint powers authorities, or part of a county regional system. CEOA LAFCO is the lead agency under CEQA for the reconfirmation of municipal service reviews and :•::lated spheres of influence. Staff, in conjunction with 1: ~.~ counsel, jury s, zoo9 RE: City of Huntington Beach SDI/MSR Review Page 4 reviewed the CEQA guidelines and recommends that the Commission consider the .proposed actions exempt from CEQA under CEQA Guidelines § 15262 (Feasibility and Planning Studies). A.project involving only feasibility or planning studies for possible future actions which the agency, boazd or commission has not approved, adopted or funded does not require the preparation of an EIR or Negative Declazation. Should an annexation be considered in the future, a sepazate environmental document will be required at that time. A copy of the Categorical Exemption is included as Attachment 2 to this report. Comment Letters •, The City of Seal Beach submitted a comment letter (Attachment 3) on April 14, 2009. The letter eagressed interest in discussing the potential annexation of Sunset Beach to the City of Seal Beach if that was an option of interest to Sunset Beach residents. Municipal Service Review Determinations A Municipal Service Review (MSR) was completed for the City of Huntington Beach in 2006. The data and findings remain current, and staff is recommending that the MSR determinations (Attachment 4) be reconfirmed. Conclusions and Recommendations Sunset Beach remains the only developed, unincorporated azea in northern Orange County that is not within a designated city's sphere of influence. Geographically, Sunset Beach is virtually surrounded by the City of~Huntington Beach. The City provides Sunset Beach with water service, assists in the transmission of wastewater, and provides emergency services to the •area thmugh a contract with the OCFA. School age children from Sunset Beach attend Huntington Beach public schools. From staff's perspective, the logical long-term municipal service provider for Sunset Beach is the City of Huntington Beach. • Staff recommends that the Commission: 1. Adopt the resolution (Attachment 5) amending the sphere of influence for the City of Huntington Beach to include the unincorporated community of Sunset Beach and reconfirming the MSR determinations for the City of Huntington Beach MSR. ._ _.. Respectfully submitted, F CROSTHWATTE ~~~~~ BOB Al_~Ricx July 8.2009 RE: City of Huntington Beach SOI/MSR Review Page S Exhibits: I. Current Huntington Beach SOI 2. Sunset Beach Vicinity Map Attachments: I. Sunset Beach Fiscal Model Results 2. Categorical Exemption 3. City of Seal Beach Comment Letter 4. Huntington Beach MSR Determinations S. Draft Resolution C .i -` -- - -- _- - - -: a:. -y9'.i =.'s ~s-.i,'S3::. ~'ai.x:.>•~ ' - ~+ :`s~i° . .•c-. -:ri~.' -i:'_ :-~ - r.: ._ _. , .... ." :. _ ~.~~~::,.~;. EXHIBIT 1 ~.~.,~:~.: '-`'- E -:,~ yr : ~, I _ ..INSTER- _.. ~ :7 ~( 5 ~•t',~ `~ .ter '~ ~ ~ _ J ~I:~IC~ ~ :~`I.'~~ ~ . ;T f.'~ •}. J mil. r-p~-i-~ 1~ ~ .°~w °3 1r^~. _ :,~ ~ .::•.!-;~~-._'L~,py ~ :;t= r' C mow''' ~.51~` ^.~,-t rL= ~. =~'~ •sr .,:.:. - •~_ %• :t- _i~'p' E GER '' ~S~ F;~ -:.C ~:er-. ~^r' i- -.r .µ ~~ , -~+~4~-~_!• '-- ~~ !ti.i. y._•}'_' 7',t iJ `-., {"'=. ••~lL, ~ `-e• ~ .~ ~ r `~~ i ~ _ + .. ;` •' _. i - ' . a~ -k , :3_`~~~r.r 'i` c ~ J ~, . - ..~.. ~i ter--•'S i'' '(~` a'_.'.~ -t . ~ . + + n ~ ' ?-'C ? ~y~ ;.Z ! ~ ~ . s. w Ni:H~I,~.`,~i t_ ~ ..r ~~r}?~~..• ~; {,- ._I- a .~, 1 _ -.1a ~ "i ~ ~x + '~ T.r -L .-~.3+~i I ~ {~+..." ~ f J { t~:,..._~ ~ a'IJ-=+-'' ~-~ ~ =,` J ~ { .~G~"C 1 y ~ ` _ ``~:.,- .. _.,.:-` ` I-iTAi.sERi1 ~~ : ~. r= , `"_--~ r:~,'`~-1= ~ ~`~ ~: ~~; . .,.A.,~ IL:`-~ , 1~. a :lELLls'=R:~IL:-~Y"` 1_ i L. -~.-^~+~-a' j ~:~ i~t~ _ ;~ ; ='~ t t t=. ~ i~=~ 1 i II=I, ~ e't • ~ 1'ti Z 1 1 i"fTLi~e: /~_ x.3.1=.'~~`- .Z.t~{ { ~~w ` '_ `~ r=.:T1~. ~C=J.1.':y~3 J ,~ ~r~ 3`'+' ~ j ~~3 y^~t ~l.L ' f ~+ ' i ~...j..{.:t.d:. ~ f:'~ {~ t... 1. ~ Tom. -"{ t f.J ,fir' i.r-; ~i:..r. ..i~~i•~ _1. X"..... i~,r~-, ,.. .`r `~ Pi~i.ty`'t~ QCLC1t?' ~.. ! t4_- 31,i- ~ ~~ -1 G'. -.a. ~ , , I •Jw L: - ` ~5 ~~ t..~:..:. ~~ ~ 3 ~y~t ~ ~- ~, f ~~ .. ~.~ ~ ~`p~ ,. - ,•~_ `~ -~~~+.~ ~'.`. ; -Tj ~ Wit:: _ ~ ~ - ryM ~ ~~~ ~ ~ _ - ~ s- ,l ~ -- `• ,.City of Htuntrn~g~to~n:• B•ea:ch~" - _ { • ~ ~ ~ f - .,~, ~ ~ - S he.r. a of °I nfl u:en ce Map ~~- • ~~ '~~ ~~ :y= 50 Ori" Ina( Ada to :06' 13 x3 -~ ~ ~ ;: .„ ` _®.••,Huntington,Bearh 8 ere;.. ;- t ~ ~ ~ ,~. ~ -Las Re sewed: 07/T8/Q •- ~ •: - .• ~.3 ''t,.~4 ~~~... •' .~~ ~ ~ [~rHuritiri on~Beach-City{ ._:~ ~ ~ p ~ ~ ! ~1 Oran a Goun a '~d~-..'.':.1 ~*.~"._- fie,. . _ "c~ _-_._ ~'i+jll@S~' ~yo'?e~ ~;pl~._~-!y g !Y•.BQUnfjaCyr.~ a .OCtAi;n QfET1EMA rK Solee• sY tiu,ri' m~ ' ~:~i ;.+ .~'-~. •~. "'%t~ 5~. ^~A ~1 ° y s-'~ ~7C~~aa .:"'S'n'~`a~~`;~.T~'n•°s a_ _" i•.g+~-a,i ~~''" 'idtk~~r.«p,yp~y a of McNd •. EXHIBIT 2 ~~ ~; ~`~ Y' ~ 1.b 9 ti~~ ~~C 1. ~3~ ~o ~~, - ..` n~~' ~~4 s "V • ~C~~ W 4 -.:F ~ q,~ ~'~~~. ..~,~ ~/I C 1 tl I$'/. ~ 8 p ~ ~ ~ ~ ®tiuittingfon Beach Spt;ere Unincorpora$ed Sunset ~~~ch _, Seal t3eactiSphere:~ .~ [~ur~ttngton Beach Boundary Sea! Beach Boun~ry Untncorpaated 0 0.125 0.25 0.5 _ Miles 07/D8/09 - ATTACHMENT 4 . ~~r$ r ~~ „~ '' ~'~~ .. ORANGE COUNTY LOCAL AGENCY FORMATION COMMiSSI Municipal Service &t Sphere of Influence Review Report for City of Huntington Beach (MSR 06-O1 F~ SOI 06- Marrh 8, ~ 1) Infrastructure Needs and Deficiencies The City's General Plan addresses the issues of growth, development. and the demand for services to ensure that the city's service infrastructures are sufficient in providing quality Ievel of services to its residents. Additionally, the City adopts an annual budget and a 5-year capital improvement program (CII~ to ensure that service levels are maintained or ialproved and that the ClP is adequately funded. Like other municipalities of similaz age, there aze deferred maintenance issues with a backlog of infrastructure needs not met with adequate funding. 2) Growth and Population Projections The City is projected to experience an increase of approximately 19,000 residents by the yeaz 2020. 3) Financins~ Constraints and ®pportunities The City uses an annual budget process that allows for mid-year adjustments when necessary. The impact of the local revenues shift to the State from the City of Huntington Beach, like all cities in Grange County and California, will result in reductions in city revenues. As well, the city's revenue has been impacted by the recent court ruling to disallow the charging of a franchise fee (in lieu) from one of the enterprise funds. Despite these challenges, the City's proposed FY 2005-2006 represents a commitment from City Council and City staff to decrease expenditures without a visible loss in service to the public. ~ Cost Avoidance Opportunities The City of Huntington Beach is ~a full-service city. The City currently provides municipal services that include building and planning, redevelopments fire, police, library, parks and recreation, and public works (including water, sewer, and storm drainage). The City currently contracts with the County of Orange for animal control services and a private contractor for solid waste collection and recycling. No significant issues were identified. 5) Opportunities for Shared Facilities Page 25 of 36 ORANGE COUNTY LOCAL AOENGY FORMATION COMMlS51 Municipal Service &r Sphere of Influence Review Report for City of Huntington Beach (MSR 06-O1 C~ SOI 06- March 8, 2 The City participates in the sharing of facilities and services by providing staffing ~.~ assistance for emergency services to adjacent and other agencies through mutual agreement. As one of its budget goals, the' City has committed to maxim~~~ng the available cost sharing opportunities with other levels of government (Federal and State. No significant issues were noted. . 6) ~pportYCnities for Rate Restructuring . No issues regazding rate restructuring currently apply. ~ Government Structure Options ' The City of Huntington Beach's Sphere of Influence includes approximately 28 square miles of city jurisdictional boundaries and around 1,600 acres of unincorporated territory. Originally adopted in 1973, the City's sphere has for . the most part remained unchanged. With a pending annexation of BoIsa Chita , it is expected that the majority of the unincorporated area will become a part of the city limits. The City has not expressed interest in annexing the 41-acre unincorporated area located in the northeastern section of the city; this azea should remain in the City of Huntington Beach's sphere until completion of the MSR and sphere for the adjacent City of Westminster. Sunset Beach is bordered by the City of Huntington Beach on the north, south, and east. The City directly and indirectly provides services to the community. The only other city that could potentiaIly provide services to Sunset Beach is the City of Seal Beach that borders the northern tip of Sunset Beach at that gated entrance to Seal Beach's Surfside residential community. Surfside, however, is physically separated from the main portion of the City of Seal Beach by the Los Alamitos Bay, and is difficult at times for even the City of Seal Beach to serve. In discussions with the City of Seal Beach staff, they have expressed no interest in the future annexation of Sunset Beach. The unincorporated community of Sunset Beach will likely face significant land use changes and fiscal challenges in the next 15 to 20 years under its existing governance structure. Staff recommends that the City's sphere of influence be amended to include Sunset Beach to encourage the most efficient provision of municipal level services if requested by the community. ~T ~~ r: n f~~:c ' ~ ~~~'~ P ti~TJ N Oh~1,~'' Page 26 of 36 otpt nG~Eycy ~j~,...~~.:. ' r~- ~' ;, D ~ - _ ~?~4T'DN cO~r,~Sh g~ ORANGE COUNTY LOCAL AGENCY FORMATION COMMISSI Municipal Setvice &r Sphere of Influence Review Report for City of Huntington Beach (MSR 06-OI 6~ SOI 06- March 8, ~ Evaluation o Management E 'ciencies No significant issues were noted. 9) Local Accountability and Governance The City provides a strong outreach effort to the community through city, council meetings (also televised live through local cable), website, and the Pubic Information Office (PIO), which serves as a vital communication link between city representatives and the Huntington Beach community. The PIO keeps residents informed of city services, programs, recreational activities and opportunities. ..-. ." Page 27 of 36 Page 32 ATTACHMENT D "COUNTY ISLAND DATA MATRIX - SUNSET BEACH - ~ DATA YEAR 2008/2009," FROM LAFCO STAFF REPORT RE: PROPOSED SPHERE OF INFLUENCE REVIEW FOR THE CITY OF HUNTINGTON BEACH (SOI 09-04) AND RECONFIRMATION OF MUNICIPAL SERVICE REVIEW DETERMINATIONS (MSR 09-03), DATED JULY 8, 2009 ~®unt~ isia~d ®ata Matrix Suns~~ beach Data Year- 2008/2009 Population 1,227 Housing Units ,Not Available Assessed Valuation Not Available Revenues Expenditures Net Revenue/(Expenditure) General Fund 701,419 1,237,023 (535,604) Road Restricted 218,654 118,501 100,153 Other Municipal 729,070 Not Available General Fund revenues & expenditures include all unrestricted revenues and customary expenditures from the General Fund Road Restricted revenues and expenditures include revenues restricted for road maintenance purporses and expenditures authorized to be expended with those funds. Other Municipal revenues and expenditures include revenues and expenditures from sources and services that may be provided by special districts, joint powers authorities, or part of a county regional system Orange County LAFCO ORANGE COUNTY LAFCO- COUNTY ISLAND DATA MATRIX County Island: Sunset Beach General Assumotions All assumptions for calculating revenues and expenditures shall be as accurate as possible. Where exact actual revenues and/or expenditures can be determined, those revenues/expenditures should be utilized. Per Capita factors applied to revenues and/or expenditures are acceptable assumptions where actual revenues/expenditures cannot be determined.. Level of Effort factors for expenditures are acceptable assumptions where per capita factors are considered less reliable for a particular function. Competitive Grant Funds for specific projects/services that are not ongoing are not to be included as a revenue source. Specific Assumptions Definition Per Capita- CW County Wide Per Capita Factor- Utilize total county population to determine factor. Per Capita- UNC County Unincorporated Per Capita Factor- Utilize county unincorporated territory population to determine factor. Calls for Service Calls for Service in the Island as a ratio of total calls for service for all county unincorporated territory. Road Miles County Maintained Centerline Road Miles- Factor for each cost element developed by applying the total county unincorporated territory cost of maintenance to the total county unincorporated Centerline Road Miles. Drainage Miles_ County Maintained Local Drainage Miles- Factor for each cost element developed by applying the total county unincorporated cost of maintenance to the total County Unincorporated Local Drainage Miles. Per Light Streetlight Operations- Determined by developing a Per Light factor of total street light costs versus total number of street lights within the county unincorporated territory. Per Signal Traffic Signal Maintenance & Operations- Determined by developing a Per Signal factor of total traffic signal costs versus total number of traffic signals within the County Unincorporated territory. APN Assessor Parcel Number- County Assessor's numerical designation of real property located within the county. APN's can change as parcels are subdivided. Other Notes 1) If annexed, city will not receive Streets & Highways Code Section 2104 revenue but will receive Streets & Highways Code Section 2107 revenue. 2) If annexed, city will receive MVLF subvention revenue per AB 1602 formula. Formula provides a population based subvention calculated as follows: For each resident within the annexed area, at the time of annexation, the city would receive $50, increased for the growth in statewide MVLF revenue since 2004, and decreased by the growth in statewide population in cities since 2004. ORANGE COUNTY LAFCO-COUNTY ISLAND DATA MATRI} County Island: Sunset Beach Demoaranhic 8 Statistical Information Population Registered Voters Employment Residential Development Single Family Units (Detached & Attached) Multi Family Attached Units.(Apartments) Mobile/Manufactured Home Units Commercial Development Commercial Retail Square Footage Industrial Square Footage General Office Square Footage Medical Office Square Footage HoteVMotel Square Footage Secured Assessed Valuation Supplemental Secured Assessed Valuation Unsecured Assessed Valuaton Supplemental Unsecured Assessed Valuation Homeowners Property Tax Relief (Homeowner's Exemption) Annual Turnover Rate of Commercial Assessed Valuation (°~ Annual Turnover Rate of Residential Assessed Valuation (~°) County Maintained Centerline Road Miles County Maintained Local Drainage Channels (Miles) County Maintained Local Parks (Acreage) County Regional Parks (Acreage) County Community Recreational Facilities (Square Footage) County Library (Square Footage) County Operated 8 Maintained Traffic Signals County Operated SVeet Lights Number of Parcels on Septic Systems Community Development Activity Planning Activity Building & Safety Activity Engineering Activity Redevelopment Project Area (As applicable) Estimated total cost of designated projects Total outstanding bond debt service Infrastructure Rehabilitation Costs Road Infrastructuro Reahbilitation Costs Local Drainage Rehabilitation Costs Public Facility Rehabilitation Costs Data Element Notes ;%227,$ Estimate based on county demographics update of most recent Census data. '~~!~''~:s;'"';t~8,42z Actual from voter precincts. """'~''~"v'~'^'~877~= EsBmate based on county demographics update of most recent Census data. Estimate from Assessor Rolls. Estimate from Assessor Rolis. Estimate from Assessor Rolis. Estimate from OC Public Works (Planning) database. County Note- Unable to determine Estimate from OC Public Works (Planning) database. County Note- Unable to determine Estimate from OC Public Works (Planning) database. County Note- Unable to determine Estimate from OC Public Works (Planning) database. County Note- Unable to determine Estimate from OC Public Works (Planning) database. County Note- Unable to determine Actual from Assessor Rolls. Actual from Assessor Rolls. Actual from Assessor Rolls. Actual from Assessor Rolls. Actual from Assessor Rolls. ~° of Assessed Valuation annual turnover in the Island versus total Island Assessed Valuation. % of Assessed Valuation annual turnover in the Island versus total Island Assessed Valuation. Actual from OC Public Works (Engineedng- Ops & Maintenance) database. Actual from OC Public Works (Engineedng- Ops 8 Maintenance) database. Actual from OC Parks database. Actual from OC Parks database. Actual from OC Public Works (Facilities) database. County Nole-None Actual from OC Public Libraries database. Actual from OC Public Works (Engineering- Ops & Maintenance) database. Actual from OC Public Works (Engineering- Ops 8 Maintenance) database. Actual From County Santiation District database. County Note- Edison operates 8 maintains Actual number of Planning Applications submitted. Actual number of permits issued. Actual number of Engineering activities performed (Includes Traffic Engineering/Plan Check/Infrastructure Engineering) Actual based on current estimated cost for all designated projects. Allocate on a pro-rata share of projects in the island. Estimated cost based on achieving a.90% Pavement Condition Index (PCI) for all roads. County Note- Based on 30 year cycle Estimated cost based on achieving a 30 year useful life. County Note- Included In Road Maintenance Estimated cost based on achieving a 30 year useful life. CDBG Funding allocated *~*+-~'',:'~i~ ~'~"'~"'~' Actual ORANGE COUNTY LAFCO-COUNTY ISLAND DATA MATRIX County Island: Sunset Beach County Revenues GenenlFund Revenues Total General Fund Properly Tax Redevelopment Project Area Increment Less- Property Tax Utilized for Countywide Services General Fund Property Tax Available for Municipal Services & Redevelopment Property Transfer (Documentary) Tax Sales Tax Property Tax In Lieu of Sales Tax Motor Vehicle License Fees (MVLF) Properly Tax In Lieu of MVLF Off Highway Vehice License Fees Transient Occupancy Tax Franchise Fees Electricity Natural Gas Water BroadbandlCable TelevisionlTelecemmunlratlons Solid Waste Disposal (Excusive 8Non-Exclusive Franchises) Animal License/Sheller Fees Code Enforcement Fines Fines/Forfeitures Proposition 172 Revenue (Restricted for Public Safety) Total General Fund Revenues Road Related Restricted Revenues Gasoline Taxes S ti H Section 2104 S & H Section 2105 S & H Section 2108 Measure M Local Slreels & Roads (Tumback) Prop 42 (TCRF). Total Road Related Restricted Revenues Other Municipal Revenues Structural Fire Fund Property Tax (OCFA) Special Assessments (CSA, Lighting, etc.) WateNWaslewaterFaes (Specal District) ~AOMD Fees (H & S Code SecBon 44223) Abandoned Vehice Abatement Fee (Vehcle Code Section 22680) Library Property Tax Total Other Municipal Revenues Note 1: Countywide services Include: District Attorney/Public DefendedProbaBon Services Court Services General Government Expenditures (See Expenditure Dala Sheet) Public Health Services Public Welfare Services Regional Recreational (Parks) Services mount Assumption of s ~~?_':~?),1%i5;306r~ Actual Based on Master TaxAgreement with the Gty containing the island in Its SOI. Do not Incude Cotrnt ole 2 SWcturel Fire Fund. Sales or MVLF In Ueu. or other Specal Assessment Property Taxes. t . • '~k4.°;U•~•"';;0;: ~ Actual Actual Increment for any applicable RDA Pro)ecl Area(s) within the Island. '?°?~0? Per Capita- CW See Note 1 below. County Note- See note 3 45 306 .., . ~ ~~ ... , ••. •On Actual Actual from APNs transferred. County- Could not provide dale. -ft°~.,18B'857,?! AcWal AGUaI from sales tax database of accounts within the Island (HDL Companies). '.`+,w-.`:'e'~19788?` Actual AcWal from sales tax revenue generation from accounts wiUBn the Island. 701.419 43,911,889 218.654 27 9.070 Per Capita- CW Countywide Per Capita applied to Island population. Actual Actual amount calculated based on Assessed Valuation of Island APNs. Per Capita-UNC County Unncorporeted Per Capita applied to Island population. Actual AcWal from aocounts within the Island. County Nale-Based on Calendar Year 2008 Per Capita-UNC County Unincorporated Per Capita eppGed to Island population Per Capita-UNC County Unncorporeted Per Ceplla eppGed to Island population. Per Capita-UNC County Unincorporated Per Capita epplled to Island population. Per Capita- UNC County Unincorporeted Per Capita epplled to Island popula8on. Per Capita- UNC Canty Unncorporeted Per Capita applied to Island popula8on. Actual Actual from fees collected from within the Island. Actual Actual from OC Public VWdcs (Code eMorcement) database. Per Capita-UNC County Unincorporated Per Capita epplled to Island popula8on. Per Capita- UNC Include only that portion estimated for Shedff serWces to the Island. Per Capita- CW Countywide Per Capita epplled to Island popula8on Per Capita- CW Countywide Per Capita epplled to Island populatior Per Capita- CW Countywide Par Capita applied to Island populaUan Actual Actual from sales tax revenue genereUon from accounts within the Island. Per Capita- CW Countywide Par Ceplle epplled to Island population. County Note-City of HB provides Service proNded by SB Sanitary Dlsldct County Nata-Not tracked County Note- Based on FY 07N8 actuals County Note- Per Lane Mile County Nole-Per Lane Mlle County Note- Per Lane Mile County Nole-Per Lane Mile Acual Actual calculated based on Assessed Valuation of Island APNs. Acluel Actual from APNs within the Island. Do not include assessments for Community Facilities Dlstdcls. Actual AcWal from accounts within the Island. Per Capita-UNC County Unincorporeled Per Capita applied to Island population. Per Capita-UNC County Unincorporeted Per Cap(la applied to Island popula8on. Pro-Rata Allocation fonnWa pro-rated to the applicable Ilbrery. Estimate the amount of General Fund Property Tax utilized for funding county wide services to the Island bydeveloping a county wide per capita estimate for the total county wide General Fund Property Tax applied to these services. Apply the per capita tactor to the Island population to determine the Island General Fund Property Tax contribution. When determing county wide service costs, do not Include costs that have been Included in the County Wide Cost Allocation Plan that is passed down as an indirect dbst to county departments. Note 2-This reflects portion of properly lax that would go to a Gty based on a master tax agreement Note 3- MPTEA would reflect what county would give up for non-countywide services, and keep for countywide services. No amount needed to be listed. Note 4-Based on assumptlort that area is annexed to Huntington Beach. ORANGE COUNTY LAFCO-COUNTY ISLAND DATA MATRIX County Island: Sunset Beach County Expenditures Include all Direct and Indirect costs for providing services identified below, including all pro-rated County WJde Cost AllocadonPlan indirect costs General Fund Municipal Service Expenditures General Government (Net County Cost( Nel of Revenues) Clerk of the Boats Executive OfUce County Counsel Inlemal Audit Human Resources Office of the Performance Audit Director Registrar of Voters Clerk-Recorder Assessors Office Treasurer-Tax Collector's Office Auditor-Controller's Office Sheriff Services Code Enforcement Animal Control Services Parks & Recreation Services Tote! General Fund Municipal Service Expenditures Redevelopment Farpenditures Project Specific Expenditures (Not funded by bond indebtedness) Bond Debl Service Total Redevelopment Expenditures Road Maintenance 8 Related Expenditures mount Assumption of s Only Include (hose prorate costs NOT already allocated to the servicing departments by the County Wide Cost Allocation Plan. Overell county wide cost computation shall be calculated as a net of offsetting revenues received. Per Capita- CW Countywide Per Capita epplled to Island populagon. Per Capita- CW Countywide Per Capita applied to Island populagon. Per Capita- CW Countywide Per Caplte applied to Island populagon Per Capita- CW Countywide Per Caplte applied to Island population. Per Capita- CW Countywide Per Capita applied to Island populagon. Per Capita- CW Countywide Per Capita applied to Island populagon. Per Capita- CW Countywide PerCapite applied to Island populagon. Per Capita- CW Countywide Per Capita applied to Island population. Per Caplla- CW Countywide Per Capita applied to Island populagon. Per Caplla- CW Countywide PerCepita eppged to Island populagon. Per Capita- CW Countywide PerCapite applied to Island populetlon. .•~iieial"198;524% Calls far Service Estimate based on either a calls for service ratio of total unincorporated territory within the applicable Per Capita- UNC servicing Division applied to the cells for service In the Islantl, or on County Unincorporeted PerCepita epplled to Island population. j^•'~~:~""^+~f6'932y Per Capita- UNC County Unincorporated Per Caplte epplled to Island population. County Note-14 calls °~"~"~^`^~ ~~ "•500: Calls for Service Estimate based on either a calls for service & shelter Intake ratio of total unincorporated applied to the calls Per Capita-UNC for service & shelter intake In the Island or on County Unincorporated Per Caplla applied to Island population. _ -,~ Actual Actual from lime charges for services provided within the Island, excluding Regional Perk services. 1.237.023 ~~-?;,Q,~ Actual Actual annual expenditure. ~•c~ce~.:tiyc~e;5R4s~r. Actual Actual annual debt service obligagon. Routine Road Maintenance General Right-of--Way Maintenance/Pot Hole Repair/Striping/Local Drainage '~`~ ~~",•,ia 96,•7,61: Road Miles Road Mile factor epplled to actual number of Roed Mlles. Traffic Signal OperationlMaintenance "~."+~.~`8;000 Per Signal Per Signal factor eppged to actual number of Traffic Signets. Street Light OperalioNMaintenance . •;15E7.,4UJ Per Light Per Light factor applied to actual number of street lights. County Note-102 lights ~ 51,264.20 per month Street Sweeping "~°:'("•!""~~'^~'~" - Road MIIes Roed Mlle factor applied to actual number of Road Miles. County Note- Included in Road Malnlenance Median & Right-of Way Landscape Maintenance ~^a;~r~~~~'"'tl"••-'~°~ Road MIIes Road Mlle factor epplled to actual number of Road Miles. County Note- Included in Roed Maintenance Total Road Maintenance B Related Expenditures OtlrerMunlcipal Service Expenditures 118.601 Fire ProtectioNSuppression (OCFA) =t~~:'~~'"f'p'•''•'~ Estimate Requires estmate from OCFA WaterlWastewater (Special District) ~;:, •.~.- , Esllmate Requires estimate from the applicable Special Disbicl Library ="~~, ~~;~"~~;";'`i1'•°;`~• Actual Based on existing Ilbrary cost or allocation factor. CSA, Lighting, etc. : ~~??~';;°`;'~?;"~ Actual Actual from county cost tracking database for the speclgc CSA/Llghgng Disldct, eta Tota- Other Municipal Service Expenditures 0 County Note- Road Maintenance Includes asphalt overlay, curb & gutter, sidewalks, street sweeping, striping, stenciling, signs, tree trimming- per prod mile factor applied Page 33 ATTACHMENT E LOCAL AGENCY FORMATION COMMISSION OF ORANGE COUNTY "PROJECT APPLICATION FORM," INCLUDING "INDEMNIFICATION AGREEMENT" Orange County Local Agency Formation Commission 12 Civic Center Plaza, Room 235 Santa Ana, CA 92701 TEL (714) 834-2556 ~, FAX (714) 834-2643 This form is to be used for applying to the Orange County. Local Agency Formation Commission for a city or district annexation, reorganization, detachment, or a sphere of influence - amendment. To facilitate your preparation of the required materials, apre-application meeting with lAFCO staff is encouraged. The meeting can be used to address applicant questions, Commission polices, timing, boundaries, and other application issues. LAFCO staff looks forward to assisting you with your project. Please fill out this application completely. If a question does not apply to your proposal, indicate "N/A" Orange County LAFCO is a "paperiess"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. 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, please answer the following three ' - 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? 3. How would a sphere of influence amendment impact social and economic communities of interest in the project area? GENERAL DESCRIPT-ION OF PROPOSAL: What changes of organization are included? What agencies are involved? Etc. The information contained in this application may be subject to disclosure under the California Public Records Act (Government Code X6250 et seq). --- WHO INITIATED THIS PROPOSAL? Please select one from the drop-down list: City Council ' Applications can be initiated by either. (1) a petition signed by five percent of the affected landowners or five percent of the affected registen:d voters from the annexing area, or(2) a resolution by the legislative body of an affected city, county or special district. The following is attached to this application form: ^ Resolution (please attach) ^ Landowner Petition (please attach) ^ Registered Voter Petition (please attach) LOCATION AND ADDRESS OF PARCEL(S): LIST OF ASSESSOR PARCEL NUMBERS: (Available from the Orange County Assessor) 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, of (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 at hftp://www.boe.ca.oov/proAtaxes/sprdcont htm. Please note, the BOE requires an additional vicinity map that shows the project area in relation to a larger geographic an:a. The information contained in this application maybe subject to disclosure under the California Public Records Act (Government Code X6250 et seq). _ _ STATEMENT OF JUSTIFICATION: Explain the purpose of each request or change of organization. Explain how the proposal provides more logical boundaries or improves the provision of service. 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) I APPLICANT'S REPRESENTATIVE (if anv)r Name: Address: Phone: Contact Person: i iue: PROPERTY OWNER(S): If more than two property owners forproposal area, please provide the name, address and contact information, on a separate page. Name: Address: Phone: FAX: FAX: Name: Address: Phone: FAX: SUBJECT AGENCIES THAT WILL GAIN OR LOSE TERRITORY: A "subject agency" means each city or disfrict for which a change of organization or reorganization is proposed. If more than three subject agencies, please provide the names and information on a separate page. Name: Address: Phone: Contact Person: Name: Address: Phone: Contact Person: Name: Address: Phone: Contact Person: FAX: FAX: email: email: email: FAX: email: Title: email: Title: email: Title: The information contained in this application may be subject to disclosure under the Californr.'a Public Records Act (Government Code X6250 et seq). -- Name: Address: Phone: Contact Person: Name: Address: Phone: Contact Person: Name: Address: Phone: Contact Person: FAX: FAX: FAX: email: Title: . email: Title: email: Title: INTERESTED AGENCIES: Interested agencies are cities or districts which provide the same facilities or services in the proposal area that a subject agency will provide. If more than fwo interested agencies, please provide name and information on a separate page. Name: Address: Phone: Contact Person: Name: Address: Phone: Contact Person: FAX: PERSONS REQUESTED TO BE NOTIFIED: If more than two names, please provide the names and information on a separate page. Name: Address: Phone: Name: Address: Phone: FAX: FAX: FAX: email: email: REGISTERED VOTER/PROPERTY OWNER MAILING LIST: Government Code Section 56661 requires that landowners within the proposal area, and registered voters both within the proposal area and within 300 feef of fhe exterior boundary of The information contained in this application may be subject to disclosure under the California Public Records Act (Government Code X6250 et seq). email: Title: email: Title: AFFECTED AGENCIES IN PROPOSAL AREA: An affected agency is a city or district wifh overlaying boundaries or spheres of influence. If more than thn:e affected agencies, please provide the names and information on ~a separate page. The following notification information has been provided (check all that apply): ^ Address labels affixed to mailing envelopes, with appropriate postage for registered voters/property owners within proposal area and within 300 feet of exterior boundary ^ Applicant requests that LAFCO produce registered voter/property owner notification NOTE: Applicant will be charged for all associated costs. ^ Application does not require registered voter/property owner notification Explanation: SCHOOL DISTRICTS: Please list school district(s) affected by the proposal. School District: Address: Phone: Contact Person: School District: Address: Phone: Contact Person: email: Title: email: Title: QUESTIONNAIRE: Please respond to all items in the following questionnaire. Indicate N/A when a question does not apply. Any additional information pertinent to the application should be included with the application at the time of submittal. LANDOWNER CONSENT FAX: FAX: Have all property owners involved with the proposal given their written consent? ^ YES (If yes, please complete Property Owner Consent form, Aifachment 1.) ^ NO (If no, please provide the name, address, and Assessor's Parcel Numbers of those property owners not consenting.) II. LAND USE Acreage of Proposal: acres The information contained in this application may be subject to disclosure under the California Public Records Act (Government Code ,¢6250 et seq). _- the property, be notified of a LAFCO hearing at least 21 days in advance of the hearing that includes a proposed reorganization. Orange LAFCO policy requires the applicant to provide mailing labels, envelopes and appropriate postage as part of the application submittal. Site Information: CITY: SPECIAL DISTRICTS: B. Describe any land use entitlements or permits approved or pending for the proposal area: C. Describe any public easements/oil well operations/major highways/watercourses/ topographical features: D. Number of acres considered Prime Agricultural Land*: acres The information contained in this application may be subject to disclosure under the California Public Records Act (Government Code x'6250 et seq). _ A. The proposal area is entirely or partially within the sphere of influence of all of the following: E. Number of acres considered Agricultural Lands*: acres *As defined by Government Code Section 56016 III. DEMOGRAPHICS A. Number/Type of Dwelling Units within the proposal area: Existing: Proposed: B. Is the proposal area considered "inhabited" (i.e. do more than 12 registered voters reside on the territory/property)? ^ YES ^ NO IV. FACTORS FOR COMMISSION CONSIDERATION There are 15 factors that are required by State Law to be considered by LAFCO in the review of a proposal (Government Code §56668). With respect to factors listed below, please provide any project-specific information (not already addressed in your application) that may be helpful in the Commission's review of your project. You may attach additional pages to this application if you need additional space. o Population and population density; land area and land use; per capita assessed valuation; topography, natural boundaries, and drainage basins; proximity to other populated areas; the likelihood of significant growth in the area, and in adjacent incorporated areas, during the next 10 years. Need for organized community services; the present cost and adequacy of governmental services and controls in the area; probably future needs of those services and controls in the area; probable effect of the proposed incorporation, formation, annexation, or exclusion and of alternative courses of action on the cost and adequacy of services and controls in the area and adjacent areas. "Services," as used in this subdivision, refers to governmental services whether or not the services are services which would be provided by local agencies subject to this division, and includes the public facilities necessary to provide those services. o The effect of the proposed action and of alternative actions, on adjacent areas, on mutual social and economic interests, and on the local governmental structure of the county. o The conformity of both the proposal and its anticipated effects with both the adopted commission policies on providing planned, orderly, efficient patterns of urban development, and the policies and priorities set forth in Section 56377. The information contained in this application may be subject to disclosure under the California Public Records Act (Government Code X6250 et seq). _ *As defined by the Soil Conservation Services (i. e., being prime, unique, or of statewide importance) AND by Government Code Section 51201(c) and 56064: o The definiteness and certainty of the boundaries of the territory, the nonconformance of proposed boundaries with lines of assessment or ownership, the creation of islands or corridors of unincorporated territory, and other similar matters affecting the proposed boundaries. . o Consistency with city or county general and specific plans. o The sphere of influence of any local agency which may be applicable to the proposal being reviewed. o The comments of any affected local agency or other public agency. o The ability of the newly formed or receiving entity to provide the services which are the subject of the application to the area, including the sufficiency of revenues for those services following the proposed boundary change. o Timely availability of water supplies adequate for projected needs as specified in Section 65352.5. o The extent to which the proposal will affect a city or cities and the county in achieving their respective fair shares of the regional housing needs as determined by the ) appropriate council of governments consistent with Article 10.6 (commencing with -~ Section 65580) of Chapter 3 of~Division 1 of Title 7. o Any information or comments from the landowner or owners. o Any information relating to existing land use designations. o The extent to which the proposal will promote environmental justice. As used in this subdivision, "environmental justice" means the fair treatment of people of all races, cultures, and incomes with respect to the location of public facilities and the provision of public services. V. PLAN FOR PROVIDING SERVICES Describe the services that are provided or are to be provided to Water The information contained in this application may be subject to disclosure under the California -- ) Public Records Act (Government Code X6250 et seq). o The effect of the proposal on maintaining the physical and economic integrity of agricultural lands, as defined by Section 56016. Sewer Police Fire Public Works Parks 8~ Recreation Other Services (list) What effect will this proposal have on the type or level of services both within and outside the proposal area? VI. SPECIAL REVENUES A. Do agencies whose boundaries are being changed have existing bonded debt? ^ YES ^ NO If yes, please describe: B. Will the ten'itory be subject to any new or additional special taxes, benefit charges, or fees? ^ YES ^ NO If yes, please describe: C. Is the city/district requesting an exchange of property tax revenues as the result of this proposal? ^ YES ^ NO If yes, is a master property tax exchange agreement applicable to this jurisdictional change? ^ YES ^ NO . VII. ENVIRONMENTAL ANALYSIS A. Who is the "lead agency° for this proposal? B. What type of environmental document has been prepared? ^ None -Categorically Exempt -Class: ^ Environmental Impact Report (If an ElR has been prepared, attach the lead agency's reso/ufion listing sign cant impacts anticipated from the projecf, mitigation measures adopted to reduce or avoid significant impacts, and a Statement of Overriding Considerations, if adopted.) ^ Negative Declaration (please attach) The information contained in this application may be subject to disclosure under the California Public Records Act (Government Code X6250 et seq). _ ^ Subsequent Use of Previous EIR: VIII. FINAL COMMENTS A. Describe any terms and/or conditions that should be included in LAFCO's resolution of approval. B. Provide any other comments or justifications regarding this proposal. C. Note any changes in the approved project that are not reflected in these materials. Attach any pertinent staff reports and supporting documentation related to this proposal. The following supplemental documentation is attached: XI. 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: ^ Financial reports and disclosures (please aftach) XII. 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: 1 The information contained in this application may be subject to disclosure under the California Public Records Act (Government Code X6250 et seq). ^ Mitigated Negative Declaration (please attach) ATTACHMENT 1 Property Owner Consent Form . (All legal owners must sign a consent form or submit a letter of signed consent.) I, ,consent to the annexation/reorganization of my property located at (or Assessor Parcel Numbers ) to the fagericy(ies)]. Signature: Address: City, State, Zip: Date: " The information contained in this application may be subject to disclosure under the California Public Records Act (Government Code X6250 et seq). _ ATTACHMENT2 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 By: Title: Mailing Address: REAL PARTY IN INTEREST (if different from Applicant) By: Title: Mailing Address: The information contained in this application may be subject to disclosure under the California Public Records Act (Government Code X6250 et secy.