HomeMy WebLinkAbout24 - Reorganization of Territory AnnexationsC_J
ITEM 24
TO: Members of the Newport Beach City Council
FROM: Dave Kiff, Deputy City Manager
SUBJECT: Resolution of Intent to Initiate Proceedings for the Reorganization of
Territory
RECOMMENDED 1. Conduct public hearing.
ACTIONS:
2. Adopt Resolution 99-_ entitled "Resolution of Application by the City Council of the
City of Newport Beach Requesting the Local Agency Formation Commission to Initiate
Proceedings for the Reorganization of Territory'
EXECUTIVE The adoption of this Resolution allows the City to file a reorganization application with
SUMMARY: the Local Agency Formation Commission (LAFCO) that would lead to the eventual:
• Annexation of unincorporated area known as Bay Knolls, Santa Ana Heights (east of
Irvine Avenue), Newport Coast and Newport Ridge areas to the City;
s Detachment of certain areas of Bay Knolls from the City of Costa Mesa;
• Detachment of territory from the Irvine Ranch Water District.
This action is the first step in the reorganization process as outlined in California Law
(Government Code §56000 et seq.). If the City Council adopts this Resolution, City staff
will gather the documents necessary to file the formal application over the next several
weeks. After adequate completion of protest proceedings, public hearings, and
measurement of opinion by the registered voters of the affected areas, annexation may be
complete by July 2000 or later.
BACKGROUND: The City of Newport Beach today has about 72,600 residents and covers 21,930 acres
(including bay and oceanfront tidelands). Since incorporation in 1906, the City has
processed 95 annexations. The City's last annexations occurred in 1998, when it added
two small parcels of land -one in Corona del Mar and one near Upper Newport Bay.
Most incorporated cities, including Newport Beach, have "Spheres of Influence" that
bound their municipal limits. State law defines a sphere of influence as a "plan for the
probable physical boundaries and service area of a local agency' as determined by the
Local Agency Formation Commission or "NCO." The City's Sphere of Influence
includes about 5,439 acres of land not currently within the City limits. These areas
include:
• West Newport /Banning Ranch (357 awes)
• Portions of Santa Ana Heights (197 acres)
• Newport Coast and Newport Ridge (4,885 acres)
State law does not require a city to annex the remainder of its Sphere of Influence by a
time certain. But it does offer guidance to LAFCOs and to local officials as follows:
Newport Beach City Council
Page 2
BACKGROUND: "The Legislature - recognizes that when areas become urbanized to the extent that they need the full
(cont'd) range of community services, priorities are required to be established regarding the type and levels of
services that the residents ofan urban community need and desire; that community service priorities be
established by weighing the total community service needs against the total f nancial resources available
for securing community services; and that those community service priorities are required to reflect local
circumstances, conditions, and limited financial resources. The Legislature finds and declares that a
single governmental agency, rather than several limited purpose agencies, is in many cases better able to
assess and be accountable for community service needs and financial resources and, therefore, is the best
mechanism for establishing community service priorities." Government Code §56001
Local officials establish community service priorities by weighing community service
needs against the financial resources available to "secure community services." This
"weighing" is typically done by identifying an area within a city's Sphere of Influence and
then completing a Fiscal Impact Analysis of the area -the Analysis looks at the revenues
and likely expenses involved in annexing new territory.
Similarly, the City of Newport Beach's Council Policy D -2 requires the City to follow
"Annexation Guidelines" that examine the fiscal impacts of an annexation prior to the
Council's formal evaluation of an annexation proposal. The review required by Council
Policy D -2 is included as Attachment A and includes:
• A Statistical Summary • Land Use and Planning Summaries
• A Plan of Services • Traffic and Circulation information
• Demographics • Costs to correct improper development
• A Cost - Benefit Analysis • more
Newport Coast and Newport Ridge. The Newport Coast community comprises the
remainder of the Qh/s eastern Sphere of influence. It includes:
• Entitlement acres
• Entitlement for up to 4,639 dwelling units
• Entitlement for up to 2,150 resort accommodations, including up to 1,800 timeshare
or vacation ownerships.
Assuming a strong economy and full build -out of the residential and commercial areas in
the Newport Coast and Ridge, information gathered by Stan Hoffman of Hoffman and
Associates showed that the City would receive a surplus in revenue associated with the
Coast in later years. The staff report associated with this information and Mr. Hoffman's
analysis are available in the City Manager's Office.
Residents of the Newport Coast and Ridge (calling themselves Newport Coast Committee
of 2000 or NCC2K) have met with City officials for more than 18 months to talk about
service provision and representation for their community. Commitments proposed by the
City to the NCC2K Committee are included in Attachment B. At a later date but before
the LAFCO hearing, City staff will likely ask the Council to formally adopt these terms.
Bay Knolls. As the City was considered annexation of the Coast, the County of Orange
offered to increase its contribution to the City's share of the property tax apportioned in
the Newport Coast if the City would agree to annex the Bay Knolls territory near Tustin
Avenue. This area -which is outside of any sphere of influence - includes approximately:
• 76 acres
• 250 homes
Preliminary fiscal information shows that this area will not generate revenue in excess of
the Cit}/s estimated service costs.
0
Page 3
BACKGROUND: Santa Ana Heights. As the County proposed adding Bay Knolls to the City's boundaries,
(cont'd) the City Council's ad hoc annexation subcommittee expressed its intent to revisit the
annexation of that portion of Santa Ana Heights that is within the City s sphere of
influence in an effort to consolidate these three annexations in one single reorganization
application to LAFCO. The Santa Ana Heights area (eastern portion) includes
approximately:
• 197 acres
• 406 dwelling units
As with Bay Knolls, preliminary fiscal information shows that this area will not generate
revenue in excess of the City's estimated service costs. The Annexation Subcommittee,
however, believes that "good government" and an ability to better influence policy
relating to John Wayne Airport suggests that the City should include both Bay Knolls and
Santa Ana Heights in an annexation application with Newport Coast and Ridge.
The Plans of Service. As a part of any reorganization application, a City must tell
LAFCO how it proposes to provide municipal services to an annexation area -this is
called a Plan of Service. The Plans of Service for these three areas are attached (included
within Attachment A). As an important note, the Plan of Service is subject to change
before final filing at LAFCO should the Council determine not to have the City administer
water, reclaimed water, and sewer service to the Newport Coast and Ridge. Similarly,
such a change may affect the application itself given that the City's decision not to serve
the Coast and Ridge with water and sewer service would not require a detachment from
the hvine Ranch Water District (IRWD).
This Agenda Item This agenda item asks the City Council to take the first formal step in proceeding with this
complex "reorganization" (a reorganization includes both detachments and annexations)
O - the adoption of a Resolution of Intention to Reorganize. The Council has previously
directed City staff to "notice" the parties affected by the reorganization at the Council's
September 27,1999 meeting. These notices went out on October 5,1999, twenty days
before the October 25,1999 public hearing on the proposed Resolution.
The Resolution of Intention and a summary of the LAFCO process is included within this
agenda items attachments.
ATTACHMENTS: Attachment A. Review Required by Council Policy D-2, including Plans of Service (TO
BE INCLUDED FRIDAY, OCTOBER 29)
Attachment B: Terms of Agreement (TO BE INCLUDED FRIDAY, OCTOBER 29)
Attachment C: Summary of LAFCO Process
Attachment D: Resolution of Intention to Initiate Proceedings to Reorganize Territory
(including maps of reorganization areas)
0
Page 4
Attachment A O
Review Required by Council Policy D -2
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Page 1 of Exhibit B
Exhibit B
PROPOSED PLAN OF SERVICE
AREA A -- BAY KNOLLS
SERVICE
CURRENT PROVIDER
- PROPOSED PROVIDER
EFFECTIVE DATE
Public Safety
Police Protection
OC Sheriff
Newport Beach PD
July 1, 2000
Fire Protection
OC Fire Authority
Newport Beach Fire/Marine
July 1, 2000
Paramedic/ Ambulance
OC Fire Authority
Newport Beach Fire/Marine
July 1, 2000
Animal Control
County of Orange
Newport Beach PD
July 1, 2000
Utilities
Sewerage
Collection
Costa Mesa San District
Costa Mesa San District
N/A
Treatment/ Disposal
OC Sanitation District
OC Sanitation District
N/A
Reclamation
N/A
N/A
N/A
Water
Wholesale /Retail
Mesa Consolidated /IRWD
Mesa Consolidated /]RWD
N/A
Improvement District
N/A
N/A
N/A
Solid Waste
Costa Mesa San District
Costa Mesa San District
N/A
Public Works
Lighting and Landscaping
Assessment District
Assessment District
N/A
Flood Control
OC Flood Control
OC Flood Control
N/A
Street Maintenance
County of Orange
City of Newport Beach
July 1, 2000
Community Development
Redevelopment
OC RDA
OC RDA
N/A
Community Services
Parks
None
City of Newport Beach
July 1, 2000
Recreation Programs
None
City of Newport Beach
July 1, 2000
Library Service
OCPL
City of Newport Beach
July 1, 2000
SERVICE
Public Safety
Police Protection
Fire Protection
Paramedic /Ambulance
Animal Control
Utilities
Sewerage
Collection
Treatment /Disposal
Reclamation
Water
Wholesale /Retail
Improvement District
Solid Waste
Public Works
Lighting and Landscaping
Flood Control
Street Maintenance
Community Development
Redevelopment
Community Services
Parks
Recreation Programs
Library Service
AREA B -SANTA ANA HEIGHTS
CURRENT PROVIDER
OC Sheriff
OC Fire Authority
OC Fire Authority
County of Orange
IRWD
OC Sanitation District
N/A
IRWD
N/A
Waste Management, Inc.
N/A
OC Flood Control
County of Orange
OC RDA
None
None
OCPL
PROPOSED PROVIDER
Newport Beach PD
Newport Beach Fire/Marine
Newport Beach Fire /Marine
Newport Beach PD
IRWD
OC Sanitation District
N/A
IRWD
N/A
Waste Management, Inc.
N/A
OC Flood Control
City of Newport Beach
OC RDA
City of Newport Beach
City of Newport Beach
City of Newport Beach
Page 2 of Exhibit B
EFFECTIVE DATE
July 1, 2000
July 1, 2000
July 1, 2000
July 1, 2000
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
July 1, 2000
N/A
July 1, 2000
July 1, 2000
July 1, 2000
SERVICE
Public Safety
Police Protection
Fire Protection
Paramedic/ Ambulance
Animal Control ,
Utilities
Sewerage
Collection
Treatment/ Disposal
Rcclamution
Water
Wholesale /Retail
Improvement District
Solid Waste
AREA C - NEWPORT COAST AND RIDGE
CURRENT PROVIDER
OC Sheriff
OC Fire Authority
OC Fire Authority
County of Orange
IRWD
IRWD /OC Sanitation District
IRWD
Public Works
Lighting and Landscaping
Flood Control
Street Maintenance
Community Development
Redevelopment
Community Services
Parks
Recreation Programs
Library Service
IRWD
IRWD
Waste Management, Inc
OC AD 88-1, 92 -1
OC Flood Control
County of Orange, HOAs
N/A
HOAs, NC Master Assn.
None
OCPL
PROPOSED PROVIDER
Newport Beach PD
Newport Beach Fire/ Marine
Newport Beach Fire /Marine
Newport Beach PD
City of Newport Beach
City /OC Sanitation District
City of Newport Beach /IRWD
City of Newport Beach
City of Newport Beach
Waste Management, Inc
OC AD 88 -1, 92 -1
OC Flood Control
City of Newport Beach, HOAs
N/A
City of Newport Beach
City of Newport Beach
City of Newport Beach
Page 3 of Exhibit B
EFFECTIVE DATE
July 1, 2000
July 1, 2000
July 1, 2000
July 1, 2000
July 1, 2000
July 1, 2000
July 1, 2000
July 1, 2000
July 1, 2000
N/A
N/A
N/A
July 1, 2000
N/A
July 1, 2000
July 1, 2000
July 1, 2000
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Attachment B
Terms of Agreement
Page 8
Attachment C
Summary of LAFCO Reorganization Process
A Graphical Description
ai�CO; �..:�:':' County of Orange
Issues Certificate bf:
:Filing within 30 Says.:::
: 'eeyins:so -pay RevKw of:'
City's Application.; : :
Notifies other:Aftected: :
::Agencies and Cb. ;
Auditor - Controller and
:Assessor:;:::;.
Notices public Hearing ln:
Newspaper at least 15
days 'prior to hearing.
: Complefes,Rovigw;
- "Holds Noticed-Public:
lHeanng in Santa And
: Approves,: Denies,: or
Apprbves Applcaton.
with Mo6ficagons.
::Directs Qty to hold
::: public. hearing.:
Resolution received by;
UkO :Eze'tutiW
Officer, prepares:::
Certificate of Copiple(ion
and gtatepieritoi:::
:Boundary Orange:::,
AudhWCbzOvArand
Asressorraftoate
~4&ofpmpeftybu
aRxtedbypropasod
aMlPxabbry nodfy ob5ef
affeckdagenoes
Negotiate Tay E-I&T e
Agreements
Gba arsweywma
Aobpb'Tax&OU'ge
Agreement
C&,WRecorder
nreives ca fifty of
Cempkfmn Imm L&W
AssessorandAraYiAr
Cbrayo#er &e
.ifatenwnt of&VIA*ry
O>Vvw
Page 9
:..................... ..... ...............................
Residents In Area to be
Reorganized
May flue vniv en protest
against the reorganinafti
up until the dose of the
CWs hearing
May vote on the Question
-shall (area) be annexeA to
the City of Newport
Beach?'
Residents begin receiving
services from
City of Newport Beall.
0
C
Attachment D
RESOLUTION NO. 99-
A RESOLUTION OF APPLICATION
BY THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH
REQUESTING THE LOCAL AGENCY FORMATION COMMISSION
TO INITIATE PROCEEDINGS
FOR THE REORGANIZATION OF TERRITORY
WHEREAS, the City of Newport Beach desires to initiate proceedings pursuant to the
Cortese -Knox Local Government Reorganization Act of 1985, commencing with Section 56000 of
the California Government Code, for a reorganization which would concurrently:
(1) Annex territory to the City of Newport Beach;
(2) Detach territory from the City of Costa Mesa; and
(3) Detach territory from the Irvine Ranch Water District; and
WHEREAS, this reorganization shall be known as the "Newport Coast /Bay
Knolls /Santa Ana Heights Annexation' and include three distinct "areas" that shall be known
as follows:
Area A - Bay Knolls
O Area B - Santa Ana Heights
Area C - Newport Coast and Ridge
WHEREAS, notice of intent to adopt this resolution of application has been given, and
this Council has conducted a public hearing based upon this notification; and
WHEREAS, the principal reasons for the proposed reorganization are as follows:
(a) the City anticipates that it can provide more efficient municipal services, especially
in the areas of law enforcement and community recreational services, to the Areas
than currently provided; and
(b) the annexation of the Areas, with limited exception, is an anticipated result of the
City's review of service provision to the property within its Sphere of Influence,
(c) the City seeks to assist the County of Orange and Orange County LAFCO in
improving and simplifying the service delivery, jurisdiction, and governance of
several unincorporated "islands" adjacent to the City.
WHEREAS, the following agencies would be affected by the proposed jurisdictional
changes:
AGENCY NATURE OF CHANGE
City of Newport Beach Annexation
City of Costa Mesa Detachment
Irvine Ranch Water District Detachment
M S /1331RESLN.DOC(10/5/99)
Resolution 99--,
Page 2
WHEREAS, the territory included within the boundaries of the reorganization is
inhabited and a description of the boundaries of the territory is set forth in:
Area A - Exhibit A
Area B - Exhibit B
Area C - Exhibit C
Area D - Exhibit D
and attached hereto and by this reference incorporated herein; and
WHEREAS, spheres of influence will be concurrently amended for the City of Newport:
Beach, City of Costa Mesa, and the Irvine Ranch Water District; and
WHEREAS, it is desired that the proposed reorganization be subject to terms and
conditions established by the Local Agency Formation Commission, and
WHEREAS, the City of Newport Beach will prepare environmental documents for the
reorganization in compliance with the California Environmental Quality Act and State CEQA.
Guidelines in conjunction with the adoption of a General Plan Amendment and Prezoning for
the Areas.
NOW, THEREFORE, this Resolution of Application is hereby adopted and approved by
the City Council of the City of Newport Beach, and the Local Agency Formation Commission of
Orange County is hereby requested to taking proceedings for the reorganization of territory as
illustrated in Exhibits A, B, and C (the "Newport Coast /Bay Knolls /Santa Ana Heights
Annexation "), according to the terms and conditions established by LAFCO and in the manner
provided by the Cortese -Knox Local Government Reorganization Act of 1985.
ADOPTED this 25th day of October 1999.
DENNIS D. O'NEIL
MAYOR
ATTEST:
LaVONNE HARKLESS
CITY CLERK
MI5 /M1RESLN.D0C p0/5/"
0
u�i -GrJ -. X77 .�•r�a 5. Junh
i a la 1 .moo. 6:
'99 OCT 20 -12 :07 S T. JOHN
0 ; i C C. F ; I j t: . @@I Estate /Architecture
CITY` „_:WfIRTBEACH
17422 DERIAN
IRVINE, CA 92614
(949) 223 -3231
FAX (949) 223 -3283
ATTN:
FAX #:
FROM:
DATE:
SUBJECT
City Clerk
(949) 644 -3039
Dan DeMille
10/20/99
Annexation of Santa Ana Heights, Eastside
Dear Sir or Madam:
I would appreciate it very much if you would distribute the attached correspondence to
the various Council Members and Managament of Newport Beach.
Thanking you in advance,
Dan DeMille
This fax contains 3 pages, including this cover sheet.
0
DESIGNED BY MARIE GRAY
0
October 20, 1999
Jeffrey Hamilton
Rita Jones
Council Members of Newport Beach
Re: Annexation of Santa Ana Heights, Eastside
I am offering, herewith, an opinion of what I believe; are the issues regarding the
annexation of Santa Ana Heights, Eastside.
First off, we should all recognize and agree that the current proposed annexation is and
can only be the Eastside which is clearly surrounded by Newport Beach and clearly meets
the definition of sphere of influence.
The following conditions would gather the support necessary:
1.) I believe that the voters on annexation of the Eastside will
strongly support the annexation independently of the Westside;
but it would also endorse the Westside addition if it can be
done through the various agencies and cities. One would not
have to be contingent on the other.
2.) No new taxes or special assessments or service fees would
accompany or be a result of annexation.
3.) Assurances that the City has adopted the Santa Ana Specific
Plan in its current form.
4.) The City will pledge to provide services consistent with other
areas of Newport Beach.
5.) Acknowledge that the City and Santa Ana I3eights' residences
have a common goal of support for an airport at El Toro and
no expansion of John Wayne Airport.
In addition to the above, the City could offer a voice and guidance as to making sure the
Santa Ana Heights community is getting the maximum allocation of re- development
funds, (which are substantial and continuing) with which to fund capital improvements in
our neighborhood.
0
E
Ul.� -cCi -. JiJ .0 uC Oi dUnIY
Dan DeMille
Jeffrey Hamilton
Rita Jones
Council Members of Newport Beach
October 20, 1999
Page 2
54 e2, 3L6,S
If the above simple format is followed, I believe the annexation efforts would pass
overwhelmingly and without delay. To try and bring a lot of petty issues will most likely
be destructive in the move for annexation at this time. Personally, I could definitely
leave the area as County; but I believe there will be pressure on the City by LAFCO in
the future to annex our area. Also, at this time, as both the community and City have
recognized a possible gain, it is probably the time to move forward.
Thanks,
Dan DeMille
Home Owner @ 20202 Cypress St.
DD(Ist
"10020
r.e3 a3
TPIT(11 O �.1�
CORONA DEL MAR RESIDENTS ASSOCIATION
Dedicated to preserving the quality of life of the community since 1987. "In unity there is strength"
0 -CEP I-
L
BOARD OF DIRECTORS:
October 25, 1999 '99 OCT 25 .All :43
Val Skoro
redevelopment pressures, commercial and residential in our village, largely
Chairman
ofF!:EJr ''i :::I ?Y CLERK
Mayor O'Neil, Mayor Pro tem Thompson CI; ; :,; _ "i"UT BEACH
OLD cDM:
Patrick Banolie
and members of the City Council
Chris Garber
"RECEf D AFTER AGENDA
Pat a
Re: Newport Coast Annexation PRINTED :" `i
Joe S
Sanchez
Phil Sansone
y� q p�
( 0- V J - r f
Robert Satter
The Corona del Mar Residents Association discussed the annexation at our
Robert ever
Mik
Mike e Toergc
10/21/99 Board Meeting. One aspect of the proposal gives us great concern -
Dennis O'Neil
the assignment of a single City Council member to represent Newport Coast.
IRVINE TERRACE:
Very truly yours,
Stan Luker
�W /y,�,�
Val Skoro
The board voted unanimously to oppose assigning the Newport Coast to our Ob
Council District.
HARBOR VIEW HILLS:
Chairman
Debbie Allen
Corona del Mar Residents Association
Jean Morris
From the mid -1950s until the 1990s no Council member from Corona del Mar
CORONA HIGHLANDS.
was ever elected to a second term (many ran but were defeated). The Corona
Bill Finster
del Mar Residents Association, founded in 1987, has unified the many diverse
Ron Tomsic
interests in our unique community. A testimony to the effect both Mayor
SHORECLIFFS:
Sansone and Mayor O'Neil ran unopposed for their second terms.
Don Baggott
CAMEO HIGHLANDS: Corona del Mar is a unique village. It has a two -mile long commercial strip
Tony Fisher
immediately adjacent to duplexes and high density residential. We face
Marge Sawyer
redevelopment pressures, commercial and residential in our village, largely
CAMEO SHORES.
made up of older structures. The Corona del Mar Residents Association works
Laura Dietz
Robert Milton
closely with the Corona del Mar Chamber of Commerce, Oasis and the Corona
del Mar BID and our Council representative to deal with the challenges of
Liaison:
taking this older community into the millennium.
CDM CHAMBER:
B.J. Johnson
In short, our village of Corona del Mar, the 6`h District, has nothing in common
CrrrCOUNCIL,
with the Irvine Company's new form of organized homeowners associations in
Dennis O'Neil
the Newport Coast.
PLANNING COMMISSION:
EdSelich
Very truly yours,
EQAC:
�W /y,�,�
Patrick Bartolic
Val Skoro
Chairman
Corona del Mar Residents Association
P.O. Box 1500, Corona del Mar, California 92625
Tel: (949) 673 -3456
Fax: (949) 673 -4511