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HomeMy WebLinkAboutS24 - LAFCO Staff Recommendations Regarding AnnexationI 0 0 CITY OF NEWPORT BEACH CITY COUNCIL STAFF REPORT Agenda Item S24 May 8, 2007 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: City Manager's Office Homer Bludau, City Manager 949/644 -3000 or hbludau @city.newport- beach.ca.us SUBJECT: COUNCIL RESPONSE TO LAFCO STAFF'S RECOMMENDATIONS REGARDING ANNEXATION ISSUES AFFECTING WEST SANTA ANA HEIGHTS, THE COUNTRY CLUB, THE MESA DRIVE AREA AND THE SANTA ANA COUNTRY CLUB ISSUE: What is the City Council's position regarding the annexation alternatives presented by LAFCO staff in its report for the May 9 LAFCO meeting? • RECOMMENDATION: 1) The City Council could allow LAFCO to act on the City's annexation application for West Santa Ana Heights, see what, if any, conditions are placed on that application, and decide at that time whether the conditions are acceptable or unacceptable. If the conditions prove to be unacceptable to the City, the annexation of West Santa Ana Heights would not take place; Or 2) If the Council's desire to keep the Banning Ranch in Newport Beach is more important than the prospect of bringing West Santa Ana Heights into the City, the Council could consider withdrawing its annexation application, since it is that application which pulls the Banning Ranch issue into the annexation equation. DISCUSSION: In 2001 -2002 the City of Newport Beach processed its application to annex East Santa Ana Heights and Bay Knolls. At the same time the City of Costa Mesa processed an application to annex about 288 acres, which included West Santa Ana Heights. During the LAFCO hearing process, the agency formally deleted the West Santa Ana Heights • area from Costa Mesa's application because LAFCO staff believed the residents there would quickly generate enough protest (more than 50% of the area's registered voters) to stop an annexation application by Cost Mesa for that territory. Council Response to LAFC *taff's Recommendations Regarding Annetion Issues Affecting W. Santa Ana Heights, the Country Club, the Mesa Drive Area and the Santa Ana Country Club May 8, 2007 Page 2 • As it pulled this portion from Costa Mesa's application, LAFCO then suggested that the Newport Beach City Council consider adding West Santa Ana Heights to our City's sphere of influence in anticipation of our annexation of it. Council never formally acted on this request. LAFCO did; however, vote to annex both South of Mesa and the Santa Ana Country Club to Costa Mesa. When it came time for the residents of South of Mesa to weigh in, about 70% of the registered voters within that area protested Costa Mesa's annexation application. The 70% protest vote terminated both the South of Mesa annexation and the Country Club's annexation to Costa Mesa. During the same period that Costa Mesa was attempting its annexations, both the West SA Heights and Country Club residents filed applications with LAFCO asking they be removed from Costa Mesa's sphere of influence. LAFCO denied the SACC's request and continues indefinitely West SA Heights' request. In November, 2006, these same annexation issues were again discussed at LAFCO, when the City submitted an annexation application for West Santa Ana Heights. The new factor was that Costa Mesa also filed an annexation application for a change of the sphere of influence line for Banning Ranch, so it could file an application to annex a 357 -acre portion of Banning Ranch. This change of sphere was something opposed by • Newport Beach and when these issues came before LAFCO, the Board gave Newport Beach and Costa Mesa a six -month period, until May, 2007, to meet and try to resolve its annexation differences, which was something a mediator could not make any progress with. The six months has transpired with a couple of meetings between elected officials and staffs, but no plan has emerged agreeable to both. With Supervisor Moorlach's election last November, he took a high interest in trying to help both cities resolve these long- standing annexation issues (Supervisor Moorlach now sits on LAFCO as a Board member). He has had talks with both cities and appears to have a plan he is prepared to support; however, it includes a portion of Banning Ranch going to Costa Mesa. LAFCO STAFF OPTIONS The LAFCO staff in its report to the Board offered three options for consideration: 1. Approving the City's annexation application for W. Santa Ana Heights; or 2. Deny the City's annexation application for W. Santa Ana Heights; or 3. Phase the City's W. Santa Ana Heights annexation over three separate phases, with progression based on the completion of certain key milestones. The second phase listed includes the City of Newport Beach filing an application with LAFCO for the • Council Response to LAFCO Staff's Recommendations Regarding Annexafion Issues Affecting W. Santa Ana Heights, the Country Club, the Mesa Drive Area and the Santa Ana Country Club • May 8,2 Page e 3 3 detachment of portions of the one -foot strip of City property surrounding the Banning Ranch. LAFCO staff is recommending a 6 -month delay of any action taking on Costa Mesa's application to amend the sphere of influence for Banning Ranch. The LAFCO staff is looking for its Board to provide staff with direction on the three options submitted. Environmental Review: The City Council's approval of this Agenda Item does not require environmental review. Public Notice: This agenda item may be noticed according to the Brown Act (72 hours in advance of the public meeting at which the City Council considers the item). Submitted by: • Homer Bludau City Manager Attachments: Annexation Staff Report • May 9, 2007 LOCAL7{GENCY FORMATION COMMISSION W ORANGE COUNTY • CHAIR Supervise, BILL CAMPBELL Supervisor TO: Local Agency Formation Commission Third District APPLICANTS ARLENE SCHAFER VICE CHAIR FROM: Executive Officer JOHN WITHERS SOI 06 -20 - City of Costa Mesa, by resolution Assistant Executive Officer Director SUSAN WILSON BACKGROUND wine Ranch Water District Both of the subject applications were considered by your Commission on July 12, 2006 and November 8, 2006. A copy of the individual staff SUBJECT: West Santa Ana Heights Reorganization to the City of ROBERT BOUER Counc6member and Banning Ranch are included as Attachments land 2 to this Newport Beach (RO 06 -25) City of.Laguna Woods report. PETER HERZOG Banning Ranch Sphere of Influence Amendment (SOI 06 -20) Councilmember Councilmernber Both the subject of considerable Commission discussion City of Lake Forest proposals were P P 1 and public testimony at both LAFCO hearings. On November 8, 2006, at ALTERNATE JOHN MOORLACH Supervise, 2" District APPLICANTS ARLENE SCHAFER RO 06 -25 - City of Newport Beach, by resolution Director Costa Mesa SOI 06 -20 - City of Costa Mesa, by resolution Sanitary District SUSAN WILSON BACKGROUND Representative of General Public Both of the subject applications were considered by your Commission on July 12, 2006 and November 8, 2006. A copy of the individual staff ALTERNATE PAT BATES reports, which provide a detailed analysis of the West Santa Ana Heights Supervisor and Banning Ranch are included as Attachments land 2 to this 5° District proposals, report. ALTERNATE PATSY MARSHALL Councilmernber Both the subject of considerable Commission discussion City of Buena Park Pa proposals were P P 1 and public testimony at both LAFCO hearings. On November 8, 2006, at ALTERNATE the oint request of Costa Mesa and Newport Beach, the Commission I P RHONDAMCCUNE Representative of 1 continued both items to today's date to allow for additional time and General Public discussion in the hope that a mutually agreeable resolution to the long - ALTERNATE term boundary issues in this area could be worked out between both CHARLEY WILSON Director cities. Cormnissioner Moorlach is playing a key role in encouraging Santa Margarita Water District ongoing negotiations among the affected agencies and groups. Despite the cities' best intentions, the Cities of Costa Mesa and Newport Beach JOYCE O Art'E Executive Officer Officer were unable to reach a comprehensive solution to all unincorporated boundary issues between the two cities at this time 12 Civic Center Plaza, Room 235, Santa Ana, CA 92701 (714)834 -2556 • FAX(714)834 -2643 http: / /wow ..orange.fafco.ca.gov • • May 9, 2007 RE: H�SAH and Banning Ranch Page 2 of 4 West Santa Ana Heights (RO 06 -25) While discussions between the cities continue, staff believes it is prudent for the Commission to move forward with consideration of the reorganization of West Santa Ana Heights at this time. Staff has outlined three options for the Commission regarding the City of Newport Beach's reorganization application. Staff is requesting direction from the Commission on which alternative to implement. The options include: Option 1: Approve Reorganization 06-25, as proposed, which would annex all of West Santa Ana Heights area to the City of Newport Beach. Option 2: Deny Reorganization 06 -25 which would maintain West Santa Ana Heights as an unincorporated community. Option 3: Modify the City of Newport Beach's application from a single annexation for all of West Santa Ana Heights into three, distinct annexations that will be phased commensurate with the completion of certain key milestones. This approach will allow for continued discussion by both cities and could support the Commission's desire to achieve a comprehensive solution to the remaining boundary issues in this area. Under Option 3, West Santa Ana Heights would be divided into three distinct annexation areas as illustrated in Exhibit A. Draft terms and conditions, outlined below, would be incorporated into separate resolutions for each of the three areas to implement a phased annexation plan. Annexation Area 1, which includes territory generally north of Mesa Drive, west of Irvine Avenue, and south of Orchard_ Drive, will annex after the City of Newport Beach files a complete annexation application for the Emerson island property located east of Tustin Avenue at Emerson Street. Annexation Area 2, which includes the territory generally north of Orchard, west of Kline Drive and south of Indus Street, will annex after: (1) the annexation of Area 1 is completed; and, (2) the City of Newport Beach files a complete application with LAFCO for the detachment of May 9, 2007 RE. WSAH and Banning Ranch Page 3 of 4 portions of the one -foot wide strip of City property surrounding Banning Ranch as approved by LAFCO. • Annexation Area 3, which includes a rectangular strip of commercial and residential development generally located east of Santa Ana Avenue, north of Mesa Drive, and south of Orchard Drive, will annex after the City of Costa Mesa and the Santa Ana Country Club mutually agree to a long -term governance plan for the Country Club property. Banning Ranch (901 06-201 The City of Costa Mesa has filed an application to amend the sphere of influence for 357 acres of Banning Ranch from Newport Beach to Costa Mesa. The property is located between the two cities, and potential access to the site is possible from either Newport Beach or Costa Mesa. To allow negotiations to continue between both cities on Banning Ranch boundary issues, staff is recommending that this application be continued for six months. RECOMMENDATIONS Staff recommends that the Commission 1. Provide direction to staff regarding one of three options outlined in this staff report for the proposed West Santa Ana Heights Reorganization (RO 06 -25), and direct staff to return at the June 13, 2006 meeting with appropriate resolutions and environmental documentation for implementation. 2. Continue consideration of the Banning Ranch sphere of influence amendment for six months. Respectfully submitted, JOYCE CROSTHWAITE BOB ALDRICH May 9, 2007 RE: WSAHand Banning Ranch Page 4 of 4 Exhibit A. Proposed WSAH Annexation Phasing Map Attachments 1. July 12, 2006 staff report - WSAH 2. July 12, 2006 staff report - Banning Ranch C LOCAL AGENCY FORMATION COMMISSION ORANGE COUNTY 12 Civic Center Plaza, Room 235 Santa Ana, CA 92701 (714) 834 -2556 • FAX (714) 834 -2643 REGULAR MEETING AGENDA Wednesday, May 9, 2007, 9:00 a.m., Planning Commission Hearing Room, Hall of Administration 10 Civic Center Plaza, Santa Ana Any member of the public may request to speak on any agenda item at the time that item is being considered by the Commission. CALL THE MEETING TO ORDER PLEDGE OF ALLEGIANCE —BY COMMISSIONER SUSAN WILSON 3. ROLL CALL 0 4. APPROVAL OF MINUTES: • a.) March 14, 2007 – Regular Commission Meeting 5. PUBLIC COMMENT This is an opportunity for members of the public to address the Commission on items not on the agenda, provided that the subject matter is within the jurisdiction of the Commission and that no action may be taken on an off - agenda item(s) unless authorized by law. 6. CONSENT CALENDAR a.) Rue Annexation (DA 06 -36) The Commission will consider the annexation of approximately 1.06 acres of uninhabited territory located in unincorporated North Tustin area to the Orange County Sanitation District. 7. CONTINUED PUBLIC HEARING Items continued from the Commission's November 2006 meeting: a.) West Santa Ana Heights Reorganization to the City of Newport Beach (RO 06 -25) The Commission will consider a proposal initiated by the City of Newport Beach to amend the city's sphere of influence to include the community of West Santa Ana Heights, which is currently contained in the City of Costa Mesa's sphere of • influence, and annex the territory to the City of Newport Beach. • • i LAFCO Agenda —May 9, 2007 • Page 2 b.) Banning Ranch Sphere of Influence Amendment to the City of Costa Mesa (SOI 06-20) The Commission will consider a proposal initiated by the City of Costa Mesa to amend the city's sphere of influence to include the area commonly referred to as Banning Ranch, which is currently contained in the City of Newport Beach's sphere of influence. PUBLIC HEARING a.) Adoption of Proposed LAFCO Budget for Fiscal Year 2007 -2008 The Commission will consider the adoption of the final LAFCO budget for Fiscal Year 2007 -2008. b.) Municipal Service Review and Sphere of Influence for Orange County Sanitation District (MSR 06-54 & SOI 07-03) The Commission will consider the Municipal Service Review (MSR) and Sphere of Influence (SOI) report for the Orange County Sanitation District. The Commission will also consider the Notice of Exemption prepared for the MSR and SOI in compliance with the California Environmental Quality Act. • c.) Municipal Service Review and Sphere of Influence for Municipal Water District of Orange County (MSR 06 -30 and SOI 07 -04) This item will be continued to the June 2007 LAFCO meeting. 9. COMMISSION DISCUSSION AND ACTION a.) LAFCO Audit Policies The Commission will discuss possible changes in the existing policy regarding use of auditors. b.) Change in June 2007 LAFCO Meeting Date The Commission will discuss a possible change in the date of June LAFCO meeting from June 13"' to June 20th. c.) CALAFCO Annual Conference The Commission will receive an update on the upcoming 2007 CALAFCO Conference which will be held in Sacramento from August 28 -31. 10. COMMISSIONER COMMENTS This is an opportunity for Commissioners to comment on issues not listed on the agenda, provided that the subject matter is within the jurisdiction of the Commission and that no action may be taken on off - agenda items unless authorized by law. 11. INFORMATIONAL ITEMS & ANNOUNCEMENTS • 12. CLOSED SESSION None 0 0 LAFCO Agenda -May 9, 2007 Page 3 13. ADJOURNMENT NOTICE: State law requires that a participant in a LAFCO proceeding who has a financial interest in a decision and who has made a campaign contribution of more than 5250 to any commissioner in the past year must disclose the contribution. If you are affected, please notify the Commission's staff before the hearing. LAFCO Agendas are available on the Internet at hqp://orange.lafco.ca.gov/agenda/index.httn. • • •