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HomeMy WebLinkAbout07 - Santa Ana Heights AnnexationITEM 7 TO: Members of the Newport Beach City Council FROM: Dave Kiff, Deputy City Manager SUBJECT: Resolution to the Orange County Board of Supervisors regarding the Proposed Annexation of Santa Ana Heights RECOMMENDED ACTION: Adopt Resolution 2000-_ requesting the Orange County Board of Supervisors' support for the annexation of Santa Ana Heights. EXECUTIVE The eastern portion of Santa Ana Heights (SAH) is within the City's Sphere of SUMMARY: Influence (the future boundary of a city). In October 1999, the City Council began the process to annex Santa Ana Heights along with two other communities. Part of the annexation process includes the negotiation of property taxes between the County of Orange and the City. While the County has adopted a policy supporting the annexation of unincorporated islands like SAH, officials with the County Executive Office (CEO) have informally told us that they oppose annexation of SAH at this time. This Agenda Item asks the Board of Supervisors to offer the Board's formal position on the annexation so that the City can either pursue annexing SAH or cease its efforts. BACKGROUND: On October 25,1999, the City Council approved a Resolution of Intention to Reorganize three areas within or near the City's Sphere of Influence (SOI), including Bay Knolls, the Newport Coast, and the portion of Santa Ana Heights (SAH) that lies east of Irvine Avenue. Steps Towards Adopting the Resolution of Intention to Reorganize is the first step in a relatively Annexation or long process that includes public hearings and the measurement of "protests" Reorganization from persons in the proposed reorganization areas. The steps are as follows: 1 - Adoption of the Resolution of Intention to Reorganize. 2 -City submits completed Reorganization Application to LAFCO. 3 -LAFCO begins review of Application 4 -City and County negotiate property tax sharing agreements. County does so on special districts behalf (Fire Authority, OC Public Library). 5 -LAFCO hears application, approves /denies /or modifies. 6 -City provides notice of Protest Hearing 7 -City measures protests up to and including hearing 8 - Depending upon outcome of Protest Hearing, City Council adopts Resolution of Reorganization. Newport Beach City Council Page 2 BACKGROUND: The fourth step -the negotiation of property taxes -is a critical step in the (cont'd) process, because it determines whether or not the annexing city will receive the revenue it needs to provide municipal services to the area. If a county refuses to negotiate the property tax split, the annexation typically dies. State law does not require counties to actually reach an agreement with cities, but it does require them to negotiate. In some regions, counties have used this power to stop annexations entirely. Orange County contains dozens of small unincorporated islands like Santa Ana Heights. Following the County December 1994 bankruptcy, County officials embarked upon a significant reorganization plan, which redefined the County's County Mission mission -the mission became: Statement The County of Orange is a regional service provider and planning agency representing all residents of Orange County. Our core businesses are: public safety, public health, environmental protection, regional planning, public assistance, social services, and aviation. The County specifically excluded the provision of "municipal" services from its mission statement. Further, in October 7,1997, the Orange County Board of Supervisors approved a policy statement that advocated for the transition of county unincorporated islands to cities in an effort to "divest" the County of municipal service provision. County Concerns Citing concerns about its control over the future expansion of John Wayne Airport (JWA), the County Executive Office (CEO) has not applied the County's "island divestment" policy to the area around JWA and the area around MCAS El Toro. As such, County officials have told us - albeit informally -that they would oppose the City's attempt to annex the Santa Ana Heights community at this time. They also cite the presence of a County redevelopment project area as an additional barrier to a simple annexation. Costa Mesa's Actions As Newport Beach has been preparing its reorganization application, the City of Costa Mesa has also been working on the annexation of island areas within Costa Mesa's SOL Costa Mesa's inclusion of the western portion of Santa Ana Heights has drawn a similar -but still informal - opposition from County officials. On February 7, 2000, the City of Costa Mesa adopted a resolution asking the Board of Supervisors to support its annexation of the western portion of Santa Ana Heights (see Attachment B). This Agenda Item asks the Newport Beach City Council to adopt a similar resolution directed to the Orange County Board of Supervisors (see Attachment A). Should the Council adopt the proposed resolution, we will forward it to the Board of Supervisors and await the Board's formal response. ATTACHMENTS: Attachment A - Resolution 2000 including Exhibit A Attachment B - Resolution of the City of Costa Mesa relating to the Board of Supervisors' support for the annexation of Santa Ana Heights Page 3 Attachment A RESOLUTION 2000 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH REQUESTING THE SUPPORT OF THE ORANGE COUNTY BOARD OF SUPERVISORS FOR THE ANNEXATION OF SANTA ANA HEIGHTS WHEREAS, the eastern portion of the area known as Santa Ana Heights is within the Sphere of Influence of the City of Newport Beach (see this resolutions Exhibit A); and WHEREAS, on October 25,1999, the City Council of the City of Newport Beach has adopted a Resolution of Intention to Reorganize certain areas within and adjacent to the City's Sphere of Influence, including the eastern portion of Santa Ana Heights; and WHEREAS, any annexation or reorganization is subject to the approval of the Orange County Local Agency Formation Commission or "LAFCO"; and WHEREAS, the City cannot proceed with its reorganization effort without completing separate property tax transfer agreements with the County of Orange for each of the areas proposed for annexation; and WHEREAS, the Orange County Board of Supervisors is the decision - making authority that can enter into a property tax transfer agreement for the Santa Ana Heights area; and WHEREAS, the City is concerned that it not invest additional time and resources into this portion of the City's reorganization proposal unless the Orange County Board of Supervisors is willing to agree to a fair property tax transfer agreement for Santa Ana Heights; and WHEREAS, The Board's anticipated decision to enter into a fair property tax transfer agreement is consistent with the County's policies on the annexation of unincorporated islands like Santa Ana Heights as adopted by the Board of Supervisors on October 7,1999; NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Newport Beach that the Council respectfully asks the Orange County Board of Supervisors to support the annexation efforts of the cities of Costa Mesa and Newport Beach before LAFCO by negotiating and agreeing to a fair property tax exchange agreement that adequately compensates the cities for their costs to serve the Santa Ana Heights community; and be it also RESOLVED by the City Council of the City of Newport Beach that this resolution be transmitted to the Orange County Board of Supervisors, the Orange County Local Agency Formation Commission, and to the City Council of the City of Costa Mesa upon passage. ADOPTED this 22nd Day of February, 2000. John E. Noyes MAYOR of NEWPORT BEACH ATTEST: LaVonne Harkless CITY CLERK Page 4 A1mc,Am&�T (3 RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COSTA MESA, CALIFORNIA, REQUESTING THE SUPPORT OF THE ORANGE COUNTY BOARD OF SUPERVISORS FOR ANNEXATION OF SANTA ANA HEIGHTS, SUBJECT TO APPROVAL BY THE LOCAL AGENCY FORMATION COMMISSION (LAFCO), AND NEGOTIATION OF A PROPERTY TAX SHARING AGREEMENT, PURSUANT TO BOARD POLICY ON COUNTY ISLAND ANNEXATIONS. THE CITY COUNCIL OF THE CITY OF COSTA MESA DOES HEREBY RESOLVE AS FOLLOWS: WHEREAS, the City Council of the City of Costa Mesa, in adopting its revised General Plan in 1992, directed the initiation of the annexation of all County unincorporated Islands within the City's adopted Sphere of Influence as established by the Local Agency Formation Commission (LAFCO); and WHEREAS, the City of Costa Mesa has diligently pursued annexation of County islands within its adopted Sphere of Influence over the past four years, working closely with the County of Orange, LAFCO, and area residents; and WHEREAS, the City of Costa Mesa and the City of Newport Beach have cooperated in their respective annexation efforts for that area known as Santa Ana Heights as depicted in Exhibit A attached to this Resolution; and WHEREAS, the residents of Santa Ana Heights have taken an active interest in pursing annexation, hosting community meetings involving representatives of both cities, LAFCO, and the County of Orange; and WHEREAS, both cities desire to move forward with the annexation of those areas within their respective Spheres of Influence subject to resident input, LAFCO staff analysis, and negotiation of a Property Tax Sharing Agreement with the County of Orange; and WHEREAS, the cities of Costa Mesa and Newport Beach have been advised by staff of the County of Orange of their opposition at this time to entering into a property tax sharing agreement for annexation of Santa Ana Heights to either city, which effectively prohibits LAFCO from approving any annexation of Santa Ana Heights by either city; and WHEREAS, the Board of Supervisors of the County of Orange is on record as supporting the annexation of County islands in an effort to clarify boundaries, reduce costs to the County, and improve the quality and level of service where possible; and WHEREAS, it is important to both the cities of Costa Mesa and Newport Beach and, most importantly the residents of Santa Ana Heights, that the Board of Supervisors fully support the annexation effort subject to the aforementioned understandings regarding any future action by LAFCO and negotiation of a Property Tax Sharing Agreement; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF COSTA MESA AS FOLLOWS: That the Orange County Board of Supervisors support the cities of Costa Mesa and Newport Beach in their efforts to annex Santa Ana Heights, subject to LAFCO approval, and negotiation of a Property Tax Sharing Agreement. That the Board of Supervisors reiterate its commitment to the annexation of County islands to adjoining municipalities by directing County staff to cooperate and process the annexation efforts by the cities of Costa Mesa and Newport Beach. PASSED AND ADOPTED this 7`" day of February, 2000. Mayor of the City of Costa Mesa ATTEST: Deputy City Clerk of the City of Costa Mesa f" c =`CJ= ` '` ' JF "1 STATE OF CALIFORNIA COUNTY OF ORANGE ) ss CITY OF COSTA MESA ) I, MARY T. ELLIOTT, Deputy City Clerk and ex- officio clerk of the City Council of the City of Costa Mesa, hereby certify that the above and foregoing Resolution No. was duly and regularly passed and adopted by the said City Council at a regular meeting thereof, held on the 7" day of February, 2000. IN WITNESS WHEREOF, I have hereunto set my hand and affixed the Seal of the City of Costa Mesa this 81" day of February, 2000. Deputy City Clerk and ex- officio Clerk of the City Council of the City of Costa Mesa S PL. 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