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HomeMy WebLinkAboutCC AG PKT 2010-08-09 #PAGENDA STAFF REPORT DATE: August 9, 2010 TO: Honorable Mayor and City Council THRU: David Carmany, City Manager FROM: Mark H. Persico, AICP, Director of Development Services SUBJECT: ORANGE COUNTY LOCAL AGENCY FORMATION COMMISSION ( LAFCO) REGARDING "SUNSET BEACH INCORPORATION" SUMMARY OF REQUEST Orange County LAFCO has requested that the City of Seal Beach comment on the proposed "Sunset Beach Incorporation" pursuant to Government Code Section 56658(b). BACKGROUND The community of Sunset Beach has been exploring various options of incorporation or annexation over a series of years. The Seal Beach City Council most recent action on Sunset Beach annexation occurred on August 10, 2009. At the conclusion of a lengthy discussion (see attached minutes) the City Council chose to receive and file the staff report; in effect taking no formal action on the annexation request. FACTS AND ANALYSIS Most recently the Sunset Beach Community Association submitted an application for incorporation to Orange County LAFCO in June 2010. It should also be noted that there is a competing application filed by the City of Huntington Beach to annex the area. Orange County LAFCO is seeking input from the City of Seal Beach. The Sunset Beach application outlines three scenarios for providing future citizens services. Agenda Item P Page 2 . Beach Maintenance & Lifeguard Program 92MMOMEM County County nnwwmflm County Greenbelt & Restrooms County City City Fire Protection OCFA OCFA OCFA Park & Recreation City City cit Police Protection Seal Beach Seal Beach Seal Beach Public Works City City Cit Sewer /Solid Waste Sunset Beach SD Sunset Beach SD Sunset Beach SD Water Huntington Beach Huntington Beach Huntin ton Beach Meter & Permit Parkin No No Yes Utility User Tax 5.00% 7.50% 10.00% Based upon the table above, Sunset Beach would be seeking Police Services from Seal Beach if they incorporated. This will have potential impacts to current City residents if there are not adequate resources added to the Seal Beach Police Department to off -set the additional workload. Studies completed by the Seal Beach Police Department and Orange County LAFCO show higher service needs in the Sunset Beach community versus the City of Seal Beach. Comparison of Police Services & Needs Calls for Service per 1,000 population % Increase Sunset Beach 1536 41% Seal Beach 1093 Officer Initiated Activities per 1,000 population Sunset Beach 961 77% Seal Beach 542 Patrol Expenditures per Capita Sunset Beach $693.22 432% Seal Beach $130.37 Reported Part 1 Crimes per 1,000 Population Sunset Beach 31.1 46% Seal Beach 21.3 Based upon the services needs of the community as outlined above, the Police Department has estimated the resources needed for it to adequately service Sunset Beach at the same level of service provided to Seal Beach residents. Page 3 Additional Seal Beach Police Resources Positions Cost (Including Benefits Quantity Total Cost Personnel Police Officer $130,000 5 $650,000 Police Aide $15,0001 1 $15,000 Other Expenses Administrative Overhead $185,000 Records & Office Supplies $2,000 Parking Hearing Officer $1,000 Dispatch $20,000 Estimated Total Annual Cost $873,000 There maybe other lower cost options, but the newly incorporated community would also receive a lower level of service. Final costs and level of service would be determined as part of contract negotiations, if Sunset Beach successfully incorporates. FINANCIAL IMPACT If Sunset Beach did incorporate, and if Seal Beach agreed to provide police services, the police department would incur an added cost of approximately $873,000 to provide services. This cost would need to be borne fully by the newly incorporated city. RECOMMENDATION Authorize the City Manager to send a response letter to Orange County LAFCO. SUBMITTED BY: Mark H. Persico, AI Director of Development Services Attachments NOTED AND APPROVED: C: '"� David Carmany, City Manager A. Orange County LAFCO Request for Review B. City Council Minutes August 10, 2009 C. Draft Comment Letter to OC LAFCO ATTACHMENT A ORANGE COUNTY LAFCO REQUEST FOR REVIEW CHAIR PETER HERZOG Councilmember City of Lake Fo-M VICE CHAIR JOHN MOORLACH SuUervisor 2 District CHERYL BROTHERS Councilmember City of Fountain Valley BILL CAMPBELL Sucervisor 3' Distrla ARLENE SCHAFER Drector Costa Mesa Sanitary District SUSAN WILSON Representative of General PubLk JOHN WITHERS Director Irvine Ranch Water Dstrict ALTERNATE PAT BATES suoerY s District ALTERNATE PATSY MARSHALL Counclmember City of Suena Park ALTERNATE DEREK J. MCGREGOR Representative of Genera Puhk ALTERNATE CHARLEY WILSON Director Santa Margarita Water D ?sdict JOYCE CROSTHWArm ;xecudve Officer LOCAL AGENCY FORMATION COMMISSION ORANGE COUNTY June 10, 2010 TO: Affected Agencies and Interested Parties FROM: Joyce Crosthwaite, Assistant Executive Officer U Carolyn Emery, Assistant Executive Officer Joe Serrano, Policy Analyst � SUBJECT: Proposed "Sunset Beach Incorporation" (IN 10 -06) In accordance with Government Code §56658(b), I am notifying your agency that LAFCO has received an application for the proposed incorporation of Sunset Beach. APPLICANT Sunset Beach Community Association by petition of registered voters. PURPOSE The purpose of the proposed incorporation is to form a municipal governing body for the inhabited, unincorporated community of Sunset Beach. As proposed, the new city desires to maintain the existing levels of municipal services currently provided by the County of Orange and allow the community more local control over how those services are provided. LOCATION The Sunset Beach area is a coastal unincorporated community of approximately 1,400 people in northwest Orange County and encompasses approximately 84.20 acres. The community is generally bordered to the north and west by the City of Huntington Beach, to the east by the Pacific Ocean, and to the south by the City of Seal Beach. The attached vicinity map identifies the subject territory proposed for incorporation. 12 Civic Center Plaza, Room 235, Santa Ana, CA 92701 (714) 834 -2556 • FAX (714) 834 -2643 http;/ /www.oclafco.org 9 Proposed "Sunset Beach Incorporation (IN 10 -06)° Page 2 of 6 DISCUSSION The residents of the unincorporated community of Sunset Beach submitted an application for incorporation in June 2010. The Statement of Justification, within the application, states: "The incorporation of Sunset Beach would improve the provision of service by providing direct local control and direct participation in the local government. Sunset Beach residents would be able to run for city council and attend Council meetings that are held within walking distance of their home or business and have access to Sunset Beach City Hall which is much easier to navigate than the County offices or Huntington Beach offices. Sunset Beach would provide services more efficiently with a 100% voting voice of registered voters and more streamlined process of city government. If annexed to Huntington Beach the voters of Sunset Beach would become disenfranchised as their vote would become less than lh of I% representation." 5Rhere of Influence In accordance with Government Code Section 56425 and the LAFCO Sphere of Influence Policy, LAFCO is required to review an agency's sphere of influence (SOI) every five years in conjunction with conducting municipal sphere reviews (MSRs). An SOI is a long -range planning tool that guides future LAFCO decisions on individual jurisdictional boundary changes, incorporation proposals, district formation, and proposals for consolidation, merger, or formation of subsidiary districts. LAFCO is required to establish an SOI to identify probable future boundaries and service areas of all cities and special districts. Orange LAFCO placed the unincorporated Sunset Beach community within the SOI of the City of Huntington Beach in July of 2009. Prior to being placed in the City's SOI, the Sunset Beach community remained the last unincorporated community located in the northern portion of the County that was not within a city's SOI. The City of Huntington Beach provides water service, assists in the transmission of wastewater, and provides emergency services to the Sunset Beach area through a contract with the Orange County Fire Authority (OCFA). The proposed incorporation application requests that the Sunset Beach community be removed from the City of Huntington Beach SOI. Municipal Services Currently the Sunset Beach community receives services from the County of Orange (community development, code enforcement, library, fire and police protection, street sweeping, beach maintenance). Sewer and solid waste service to Sunset Beach are provided by the Sunset Beach Sanitation District. Water service for Sunset Beach is provided by the City of Huntington Beach. Fire protection is provided by the Orange County Fire Authority (OCFA) and OCFA contracts with the City of Huntington Beach to provide emergency medical services. Police protection is currently provided by the Proposed "Sunset Beach Incorporation (IN 10 -06)° Page 3 of 6 Orange County Sheriff and traffic enforcement is the current responsibility of the California Highway Patrol. The Sunset Beach Community Association application proposes the creation of a general law city responsible for the provision of general government services, public safety, and municipal public works not currently provided by the Sunset Beach Sanitary District. The application proposes that the service providers of sewer, solid waste, water, fire protection and emergency service remain unchanged. The proposal assumes that the new city will contract with the City of Seal Beach for a similar service level for police protection currently provided by the County Sheriff to the Sunset Beach area. Provision of the police protection services by the City of Seal Beach would need to be reviewed as part of the incorporation process and requires approval of the Seal Beach City Council. Below are the three municipal service scenarios (See Table A) proposed in the incorporation application of Sunset Beach The application assumes that the provision of the municipal services by the proposed City of Sunset Beach would result in a utility user tax rate ranging from 5 -10% as indicated in the table below. Table A Beach- Mainteinance; `> :: "" ' • � •� .� r 4 �� ' Lif e' �ard: � ....... v - � � • .'Coon ty ,'' a•.:�� - -'�� "•�:, •' County - Cit3' \\ Greenbelt & County City City Restrooms Fire' Pr' otection.,: ,.: > ` t OCFA : '' OCFA�. . ,: OCFA:` " Park & Recreation Ci Ci Ci 'Police Protection: ' - ` "` :Seal Beach: `` °-x' ::" ° ' Sea1..Beach ' Seal Beach Public Works Ci city ci Sewer /Solid Waste' Sunset Beach SD, -> ,,Sunset Beach SD",' ..' Sunset Beach SD Water H untington Beach Huntington Beach Huntington Beach ;Mefer: & Perm it ; No;=x . `Parkin ,:Z1Vo` Yes .. . Utility User Tax 5.00% 7.50% 10.00% Proposed "Sunset Beach Incorporation (IN 10 -06)" Page 4 of 6 Comprehensive Fiscal Anal Government Code §56800 requires that LAFCO prepare a comprehensive fiscal analysis (CFA) for all proposed incorporations. The CFA is required to review and document four categories of factors: A.) The costs to the proposed city of providing public service and facilities during the three fiscal years following incorporation. B.) The revenues of the proposed city during the three fiscal years following incorporation. C.) The effects on the costs and revenues of any affected local agency during the three fiscal years following incorporation. D.) An analysis, consistent with Government Code Section 56720, which states that commission shall not approve or conditionally approve any proposal that includes an incorporation, unless the commission finds, based on the entire record, that: (a) The proposed incorporation is consistent with the intent of this division, including, but not limited to, the policies of Sections 56001, 56300, 56301, and 56377. (b) It has reviewed the spheres of influence of the affected local agencies and the incorporation is consistent with those spheres of influence. (c) It has reviewed the comprehensive fiscal analysis prepared pursuant to Section 56800 and the Controller's report prepared pursuant to Section 56801. (d) It has reviewed the executive officer's report and recommendation prepared pursuant to Section 56665, and the testimony presented at its public hearing. (e) The proposed city is expected to receive revenues sufficient to provide public services and facilities and a reasonable reserve during the three fiscal years following incorporation. (f) Per Government Code Section 56657; notwithstanding Section 56655, the Commission shall not approve a proposal for incorporation, consolidation of districts, dissolution, merger, establishment of a subsidiary district, or a reorganization that includes any of these changes of organization until it has considered any other change of organization which conflicts with the subject proposal and which was submitted to the Commission within 60 days of the submission of the subject proposal. Proposed "Sunset Beach Incorporation (IN 10 -06)" Page 5 of 6 LAFCO staff is currently preparing an inventory of its needs to complete a CFA for the proposed incorporation of Sunset Beach. The CFA will review the boundaries submitted by the Sunset Beach residents. The CFA will be based, in part, on data from the prior fiscal year. In this case, the prior fiscal year is 2009 -10. Those agencies that directly serve the area proposed for incorporation can anticipate a request for data from LAFCO that will specify the information required. While these requests will be issued shortly, agencies serving the unincorporated Sunset Beach community area are encouraged to prepare their staffs to summarize the costs associated with providing such service and /or the revenues generated from jurisdiction over the area. COMMENTS AND INQUIRIES While the application is currently incomplete, LAFCO staff has begun the preliminary stages of reviewing the proposal submitted by the Sunset Beach residents. LAFCO welcomes the comments and inquiries of affected agencies and interested parties. Of particular interest to LAFCO is the identification of issues relating to this proposal that should be considered by staff in its preparation of the CFA and staff report. LAFCO requests that general comments and inquiries pertaining to such issues be submitted no later than Wednesday, June 30, 2010. Please direct comments and inquires to: Carolyn Emery,. Assistant Executive Officer cemery@oclafco.org Joe Serrano, Policy Analyst iserrano@oclafco.or Orange LAFCO 12 Civic Center Plaza, Suite 235 Santa Ana, CA 92701 Voice: (714) 834 -2556 Fax: (714) 834 -2643 Proposed "Sunset Beach Incorporation (IN 10 -06)" Page 6 of 6 Distribution Persons Name(s), Agency Alicia Campbell, County of Orange, Public Works Andy Sechrist, California Highway Patrol Anna Beal, County of Orange, Surveyor Darren Dang, Orange County Department of Education Dennis Sorenson, Orange County Fire Authority Steve Dunivent, County of Orange, CEO Ethel Young, Metropolitan Water District of Southern California Frank Davies, County of Orange, Auditor - Controller Eliseo Gillamac, County of Orange, Auditor - Controller Israel Guevara, County of Orange, Auditor - Controller Jay Gentile, California Highway Patrol Jeff Southern, County of Orange, CC Waste & Recycling Kevin Hunt, Municipal Water District of Orange County Lt. Bob Wren, Orange County Sheriff's Department Michele Hernandez, Orange County Fire Authority Arounsy Phommasa, County of Orange, Auditor - Controller Thomas Beckett, County of Orange Brad Tippett, County of Orange, Surveyor Tom Gallivan, Orange County Sheriff's Department William Habermehl, Orange County Department of Education Jay Wong, County of Orange, CEO Greg Griffin, Sunset Beach Community Association Paul Emery, City of Huntington Beach John Woods, Sunset Beach Sanitary District Chris Montana, Sunset Beach Sanitary District Rick Francis, County of Orange, 2nd District J, AV Vw, 6IN P S 4 % "o AR -111 v'4 Untingr on W: A . W W,� A f6� Sunset Beach �Qg �. ;,sf:• �'•��'� ..g: :°y'ti : u••�: � . , ?�; : -�•i' / "tF.••v >,•• ;`• �,•r"p "w : :� • • '� ,'!" � J, - •` x":- <33"..�•.` w u« w .g € i�:�, " y, (�, �;� .�?.... K f y' l' �}'. ' ` • �a j1 `x e r ' � • • �•, ° ' „'/� a E . -4. ? ,Pddfk Ocean.:. Beac VK no -, R!"Y K- _ � Wi 'A q p "M 4 . 1 # V an -- q X. Pr6posed Sunset", 0 QHuntingtoh S01 Beal'thl'fiddrod. . ati n. h '06) v- = Huntington B' ac e = Sea"' "'06108/10 I Proposed Sunset Beach 0 :Incorpo Miles t, ATTACHMENT B AUGUST 10, 2009 CITY COUNCIL MEETING MINUTE EXCERPT MINUTE EXCERPT Seal Beach, California August 10, 2009 The City Council of the City of Seal Beach met in regular session at 7:10 p.m. with Mayor Shanks calling the meeting to order and Mayor Pro Tern Sloan leading the Salute to the Flag. ROLL CALL Present: Mayor Shanks; Council Members: Antos, Levitt, Miller, Sloan COUNCIL ITEM ITEM "A" / CONSIDERATION OF SUNSET BEACH ANNEXATION (Shanks) The Director of Development Services gave a detailed report on the Council consideration of Sunset Beach annexation (copy of staff report and presentation is on file in the City Clerk's office). Key Points: • 3 options: 1 - Adopt resolution making an application to LAFCO (Local Agency Formation Commission of Orange County) requesting City to take proceedings to place Sunset Beach within its sphere of influence and file Annexation 2009 -01; 2) Provide staff additional direction; or 3) Receive and file the staff report; • Identified LAFCO processing financial obligations: application fee, public noticing, CEQA compliance costs, state controller costs, special legal counsel costs, LAFCO staff costs, etc.; • Council's current stance on annexation of Sunset Beach (letter — April 13, 2009) amenable to a discussion regarding the issue with affected residents and a full review of impacts - fiscal and all municipal services; • City staff has reviewed the "County Island Data Matrix — Sunset Beach — Data Year 2008/2009" — opinion that LAFCO overstated the OC sheriff services — more realistic cost basis may achieve revenue neutrality; • Staffs analysis for preliminary fiscal review would need to be reviewed by a fiscal consultant if Council decides to pursue the annexation (staff recommendation); • Staff met with representatives from Sunset Beach to review and discuss the areas of concerns and impacts to both parties (local coastal plan; zoning — building and planning; risk management; public safety — police, lifeguard, fire; special event permits; all areas of public works; business licenses; utility user tax; etc.) Speakers: Support annexation - 7 Oppose annexation -11 Neutral - 2 Minute Excerpt - 08/19/09 Page 2 Council Comments: • Strong reservations regarding the financial impacts — may not be revenue neutral and may have too many unknown costs associated with the annexation including the long term infrastructure obligations; • Sunset Beach representatives are nice people — have not been reassured of any financial benefits to Seal Beach; • Should not prolong this process; • Unhappy that Council has to make a decision of this importance to so many people in such a short period of time — something wrong with the County's procedure; • Council should not be considering the annexation because of the urgency from the County; • Realized that there are 5 restroom facilities (4 unisex restrooms in each building — showers — drinking fountains — sinks) on the greenbelt in Sunset Beach — maintenance on those facilities could be approximately $270,000 a year; • Sunset Beach can have up to 10 times their population on a weekend — potential for an increase in crime activity; • Problem establishments — 3 majors bars — several massage parlors — tattoo — marijuana dispensary — etc.; • Concerns: lifeguard tower increase — water and sewer provided by the City of Huntington Beach — trash disposal — sanitation district — potential of high tides (water currently pumped out by residents); • All start-up and on -going costs are underestimated — too many unknowns; • Cannot see Sunset Beach maintaining their own identity — they are not a gated type of community — not allow a super status for one residential area; • A variety of unanswered questions including money — water system is provided by Huntington Beach — dock agreements — cleaning beach — sand replenishment; • County is currently working on a project report on Bay View (area on the inland side of Pacific Coast Highway) — improvements for this area regarding the flooding issue and street repairs; • Council should consider staff's recommendation of either option #2 — ask for more information or option #3 —just say no; • Not enough information to make a decision; • Current law states "no taxation without representation" — Seal Beach utility user tax — does this need to go to the voters of Sunset Beach? • City Attorney response: Attorney General takes the position that the voters would incorporate their decision to accept the UUT along with the annexation — LAFCO position is that one vote on annexation (satisfies Prop 218) — island areas (one side ocean and other 3 sides by one city) voters do not get a vote — there is a question regarding the size of the area being annexed (different rules) — residents must have at least one vote; • Concerned about going forwarded with the costs for the annexation and Sunset Beach not accepting the UUT (11 %); and Minute Excerpt - 08/19/09 Page 3 With all the unknowns, feelings for the residents of Sunset Beach would need to keep as the primary concern the interest of Seal Beach. Mayor Shanks called for a motion on Option #3 — receive and file the staff report on the annexation of Sunset Beach. Antos moved, second by Miller, to receive and file the staff report - no other action to be taken. 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 above is a true and correct copy of the minute order 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 thereof held on the 10th day of August 2009. DATED this 29th day of July 2010. Linda Devine, City Clerk City of Seal Beach ATTACHMENT C DRAFT COMMENT LETTER TO LAFCO August 10, 2010 L :K r_3s Joyce Crosthwaite Executive Officer Orange County Local Agency Formation Commission 12 Civic Center Plaza, Room 235 Santa Ana, CA 92701 Subject: Proposed Sunset Beach Incorporation (IN 10 -06) Dear Ms. Crosthwaite: On August 9, 2010, the Seal Beach City Council considered the above referenced proposal. Based upon the Proposal submitted by the Sunset Beach Community Association, the newly incorporated city would be seeking to have the City of Seal Beach Police Department provide police protection within the jurisdiction. According to preliminary estimates from the Seal Beach Police Department it would cost approximately $873,000 for the Department to adequately serve the newly incorporated city. While these cost numbers are not final they are based upon the best available information. We are open to discussions with the Community Association as part of their incorporation efforts, with the understanding that any police services provided by the City must have no impact upon the Department's current operations. If you have any further questions, I can be reached at (562) 431 -2527, ext. 1300, or dcarmany(a ci.seal- beach.ca.us Sincerely, AFT David N. Carmany City Manager