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HomeMy WebLinkAbout07 - Pre-Annexation Agreement for Newport CoastITEM 7 TO: Members of the Newport Beach City Council FROM: Dave Kiff, Assistant City Manager Robert Burnham, City Attorney SUBJECT: Authorization to Execute: Pre - Annexation Agreement implementing Annexation Terms for the Newport Coast; and Cooperative Agreement for Planning Services with the County of Orange. RECOMMENDED Authorize the City Manager to execute two Agreements: ACTION: (1) A Pre - Annexation Agreement that implements previously- approved annexation terms and conditions for the Newport Coast community; and (2) A Cooperative Agreement with the County of Orange for Planning Services consistent with Development Agreement #14 (between the Irvine Company and the City of Newport Beach). BACKGROUND: The Newport Coast community is a 7,799 -acre region within the City's sphere of influence that lies immediately southeast of the city's limits at Corona del Mar, Harbor Ridge, and Bonita Canyon (see map in Attachment A). When ultimately developed, it will contain up to 5,150 residential dwelling units, 2,150 resort accommodations, two retail commercial centers, and extensive open space dedicated for public use. The open -space dedications are contingent upon, and phased with, completion of development. Today, about 3,000 of the 5,150 residential dwelling units are built and occupied. Both commercial centers are under development, with the center at San Joaquin Hills Road and Newport Coast Drive slated to open in early 2002. Only about 150 of the 2,150 resort accommodations are built or under construction (the Marriott Newport Coast Villas). County demographers report that about 7,000 people live in the Newport Coast today. In September 2000, the City Council directed staff to proceed with filing an annexation application with the Local Agency Formation Commission (LAFCO) for the annexation of the Newport Coast The City filed this application in March 2001. In part because this annexation has been such a long process, a timeline of related Newport Coast actions is included as Attachment B. Pre- Annexation Agreement with Newport Coast Community. As a part of its filing, we included a set of 15 "terms and conditions' approved by your City Council in September 2000 that the City would provide to the residents of the Newport Coast upon annexation (see Attachment C). These terms and conditions agreed to after more than three years of discussion with residents of the Newport Coast community acting as the Newport Coast Committee of 2000 (NCC2K). "Terms and conditions" is a phrase of substantial meaning in LAFCO law (Government Code 56000 et seq). Typically, LAFCOs apply terms and conditions that local agencies must satisfy before the LAFCO executive officer can certify the final documents associated with an annexation. These terms and conditions usually relate to the payment of tax revenue, transfer of employees, the formation of special districts, and more. In preparing the City's LAFCO application for hearing, LAFCO staff have noted that the majority - if not all - of what we called "terms and conditions" may not be within LAFCO's purview to approve, since almost all of them direct the City to perform certain activities after annexation occurs. LAFCO staff suggested instead using a pre - annexation agreement to implement the 15 actions. After consultation with the City Attorney and representatives of the NCC2K, we have agreed to develop this pre - annexation agreement and to present it to LAFCO at the time of the first hearing. The Agreement itself will be between the City and a representative resident group - likely to be the NCC2K or the two master homeowners' associations that govern the Newport Coast today (the Newport Ridge Master HOA and the Newport Coast Master HOA). The Agreement will specifically address the manner in which the City addresses, admininsters, and achieves each of the 15 actions proposed and approved by your Council in September 2000. Cooperative Agreement for Planning Services with the County of Orange. In June and July, 2001, the City entered into an Annexation and Development Agreement (DA #14) with the Irvine Company that transfers municipal land use authority in the Newport Coast (already bound by a County development agreement and the Newport Coast Local Coastal Program, 2nd Amendment) to the County of Orange. The Agreement, in part, requires the developer to support and help facilitate the annexation of the Newport Coast as long as (among other things): 3.1.1(c) The City transfers municipal land use authority (including the issuance of building and grading permits) to the County pursuant to a joint powers or similar agreement and/or ordinance until such time as the Project is complete or until OWNER consents, in writing, to an assumption of municipal land use authority over all or a portion of the Property. LAFCO has also suggested that the City and County enter into a Cooperative Agreement with the County of Orange's Planning and Development Services (PDS) Department to implement the above provision of DA #14. The City Attorney concurs that a Cooperative Agreement will be the best way to address issues such as: Building and Grading Permits on the existing entitlement; Building Inspections on permitted facilities; Administration of the Newport Coast's open space dedications and acreage within the Coastal Natural Communities Conservation Plan (NCCP); and /) • Transferring documents and land use responsibility after the County issues Certificates of Occupancy for residential and commercial properties. THIS AGENDA This Agenda Item asks the City Council to do two things: ITEM: (1) Authorize the City Manager to execute a pre - annexation agreement between the City and representatives of the Newport Coast residents that is consistent with, and will establish the procedures necessary to implement, the 15 actions approved by the City Council as "terms and conditions" in September 2000. (2) Authorize the City Manager to enter into a contract with the County for the provision of planning and building services that is consistent with the terms of the development agreement between the City and The Irvine Company. These agreements, when executed, will be provided to the Council during a public meeting as a "receive and file" item and to the public via the City's website (www.city.newport- beach.ca.us). ATTACHMENTS: Attachment A - Map of the Newport Coast annexation area Attachment B - Summary of Newport Coast Annexation and Sphere actions Attachment C - "Terms and Conditions" adopted in September 2000 3 Attachment B Summary of Newport Coast Annexation and Sphere Actions Discussions /hearings relating to Sphere of Influence: August 1970 City submits first Sphere map to LAFCO February 1971 City Council establishes "Downcoast Development Committee' September 1972 Execution of an Agreement between the Irvine Ranch Water District and the City regarding water and wastewater service in the Newport Coast. Study Session entitled "Downcoast Annexation Analysis" August 1973 Council Hearing on "Downcoast" Annexation - Council adopts a Sphere of Influence report that includes the Newport Coast (Area "G ") September 1973 Revision of 1972IRWD /City Agreement May 1975 Report by Public Works Director on infrastructure improvements made within Newport Beach in anticipation of annexation of the Newport Coast October 1975 Council hearing on "Downcoast Sphere of Influence' August 1976 City Council adopts Resolution 8878 setting forth the eastern edge of the Sphere of Influence at Muddy Canyon September 1976 Newport Coast added to Newport Beach Sphere of Influence September 1979 LAFCO review of Newport Beach's Sphere of Influence - Newport Coast retained within Sphere. July 1980 LAFCO and City Council re- affirm Newport Beach's Sphere of Influence, including the Newport Coast August 1983 LAFCO and City Council re- affirm Newport Beach's Sphere of Influence, including Newport Coast Recent Discussions /Hearings relating to Annexation: February 22,1999 Discussion of proposed annexation; Motion to have new ad -hoc committee meet with Coast Residents September 27, 1999, Notice to interested Agencies: Intent to initiate proceedings for the reorganization of territory ... Set Oct. 25, 1999 as Public Hearing October 25,1999 Resolution of intent to initiate proceedings for the reorganization of territory; Adoption of resolution requesting LAFCO to initiate proceedings. February 22, 2000 IRWD Agreement over Water/ Sewer Service in proposed Annexation Areas. April 11, 2000 General Plan Update May 23, 2000 Budget Information dealing with annexation June 27, 2000 Discussion of Street Sweeping and Library Needs in Newport Coast Area. September 12, 2000 Notice of a Resolution of Intent set for the next agenda for application with LAFCO. September 26, 2000 Public Hearing on the Adoption of Resolution of Application Requesting Initiation of Proceedings to Reorganize Territory & Rescinding Resolution 99 -71. October 24, 2000 Review of Zoning & Development Agreement necessary to provide for annexation. October 24, 2000 Prezoning & Development Agreement for the Newport Coast /Ridge Area - Second Reading October 24, 2000 Building Department Plan Check Review: Annexation will increase the need for more employees in Department. December 12, 2000 Acceptance of Law Enforcement Grants January 27, 2001 Annexation Update - Council Study Session February 27, 2001 Formation of Annexation Ad Hoc Committee March 27, 2001 Discussion/ Adoption of Resolution relating to the City's Intention to submit and certify a Local Coastal Program (LCP) for the City and for the Newport Coast O May 8, 2001 Resolutions authorizing LAFCO to Process the Annexation Areas as Individual Application and Agreeing to the Master Property Tax Exchange for the Newport Coast Annexation Area June 26, 2001 Discussion regarding the Annexation and Development Agreement with The Irvine Company for the Newport Coast. July 10, 2001 Adoption by Ordinance of the Newport Coast Annexation and Development Agreement (DA No. 14) w/ the Irvine Company. July 24, 2001 Second Reading of Ordinance relating to the Annexation and Development Agreement regarding the Newport Coast. August 14, 2001 Adoption of a Resolution agreeing to a Master Property Tax Exchange Agreement for the Newport Coast August 28, 2001 Authorization for the City Manager to enter into an Annexation Agreement with the Newport Coast Community regarding annexation terms and conditions; Authorization to enter into an Agreement for Planning Services with the County of Orange. q Attachment C NEWPORT COAST REORGANIZATION TERMS AND CONDITIONS As Adopted by the City Council on September 26, 2000 with further changes made after consultation with NCC2K on October 13, 2000 1 — Newport Coast Advisory Committee, At the date of the Conducting Authority hearing on the Newport Coast and Newport Ridge ( "NEWPORT COAST') annexation (CA01 -06), the City of Newport Beach ( "CITY") shall establish'the Newport Coast Advisory Committee ( "NCAC "). The NCAC shall consist of seven (7) members, four (4) of whom shall be appointed by the Newport Coast Committee of 2000 and three (3) of whom shall be appointed by the City Manager after consultation by the City Council. Should Reorganization #00 -_ not be certified by LAFCO, the City shall disband the NCAC. 2 — Infrastructure Buyback. City will partially reimburse owners of improved residential lots in Newport Coast by purchasing specific municipal infrastructure facilities funded through County Assessment Districts in the Newport Coast. Upon receipt of first payment from January 24, 2000 Settlement Agreement ( "SETTLEMENT AGREEMENT') between IRWD and City, City will segregate $1,200,000 in a separate interest - bearing account. City shall apportion and pay the First Buyback Payment ( "FIRST BUYBACK PAYMENT') as soon as possible at a time and in a legal manner of apportionment to be determined by the Newport Coast Advisory Committee after consultation with the City Attorney. First Buyback Payment shall equal $1,200,000 plus interest between date of segregation and date of expenditure. On the 1s', 2n4, 3 d, 0, 5", 6`n 7m 8', 9`n 10', 11`n 12`n 13`n, and 14`n anniversaries of the First Buyback Payment, City shall pay $1,200,000 ( "Anniversary Payments ") as soon as possible and in a manner of apportionment similar to the apportionment of the First Buyback Payment. Revenue from the First Buyback Payment and any Anniversary Payment shall only be apportioned to owners of improved residential lots. 3 -- Expert Review of ADs #88 -1 and #92 -1. City will hire and /or direct in -house staff to diligently examine documents associated with County Assessment Districts #88 -1 and #92 -1 and to resolve outstanding issues regarding these Districts to a satisfactory conclusion within 12 months of certification of Reorganization #01 -_ Examination effort shall be overseen by the City Council and the NCAC. 4 -- Civic Center. City shall allocate up to the entirety of a $7 million Newport Coast Civic Center Account ( "CIVIC CENTER ACCOUNT) for a Civic Center in the Newport Coast of approximately 22,000 square feet. Centers primary location shall be adjacent to or within Newport Ridge Park depending upon community input. An alternative site may be at the top of Ridge Park Road (within new park not yet constructed). Upon formation of NCAC, City shall make funds available immediately for planning and design, with construction anticipated in FY 2002 -03. Funds in Civic Center Account shall only be used for actual costs of construction, including permitting and design and shall not include City administrative overhead, furniture, fixtures, and equipment (FF &E), or other indirect incidental costs. NCAC shall direct and approve final design of Center as long as design does not impair City's ability to operate and maintain Center. Center may contain, among other things, a gym, library, meeting rooms, and ancillary rooms. Center shall be a City -owned and operated asset with a Newport Coast resident -based reservation preference system developed by the NCAC. Preference system shall not allow arbitrary cancellation of properly - scheduled events. If by June 2003, the Civic Center has not been planned and the City Council after consultation with the NCAC deems that the Center is not wanted by the Newport Coast Community, revenue remaining in the Civic Center Account shall be added to the Infrastructure Buyback provisions of Condition #2 and shall be returned over a period of three (3) years between June 2003 and June 2006. 5 -- Remainder of Account. If Civic Center is constructed and revenue remains in the Civic Center Account, such revenue shall be added to the Infrastructure Buyback provisions of Condition #2 and shall be returned to owners of improved residential lots within six (6) months of issuance of Certificate of Occupancy for Civic Center. 10 6 -- One Council District. Upon effective date of reorganization, City shall draw Council boundaries after reorganization such that Newport Coast is placed within a single City Council district upon reorganization through the first regularly scheduled City Council election (November 2002) following reorganization. 7 -- Retention of IRWD. City agrees to retain IRWD as the Newport Coast's provider of water, sewer, and reclaimed water service. City shall enforce and follow the terms of the Settlement Agreement as it relates to rate protection and IRWD's Improvement District levies ( #140/240 and #160/260). 8 — Fire and Emergency Medical Services. Upon effective date of reorganization, City shall provide the identical Fire and EMS service to the Newport Coast that it provides to the remainder of the City. Such service shall include the placement of a Paramedic Assessment Unit (including a full -time paramedic) at the Newport Coast Fire Station (Station #52) immediately following City's takeover of services. 9 — Law Enforcement Services. Upon effective date of reorganization, City shall add one additional patrol beat and related staffing. In addition, City will realign beat structure such that Newport Coast becomes a part of two separate patrol beats (such beats shall include portions of current City as well) to enhance coverage in Newport Coast. Response times and staffing levels in Newport Coast shall be consistent with those enjoyed by remainder of City. City shall, upon consultation with the NCAC, provide specific on -site but temporary law enforcement services to the Coast as requested, using facilities at the civic center or fire department for events such as crime prevention presentations, fingerprinting small children, signing up alarm accounts, distributing material and more. 10— Public and Private Parks. Not more than two months after the formation of the NCAC, the NCAC shall determine which park facilities shall remain "private" and administered and maintained by Newport Coast HOAs. The private swim and tennis facility at Ridge Park Road shall remain private. Upon receipt of this determination from the NCAC, City shall accept any Irrevocable Offer of Dedication associated with all Newport Coast parks (except the swim and tennis facility mentioned above) and, where portions of such parks shall remain private, shall lease back private portions to area HOAs in a manner acceptable to the City Attorney. City shall offer these leases for the longest feasible term at $1 per year. Leases shall assign all liability obligations for the private portions of these parks to Lessees (HOAs). City or its contractor shall maintain facilities to standards in place today in the Newport Coast. City will use current landscape maintenance companies subject to City's competitive bid practices 11 — Public Common Areas, Slopes, and Medians. City shall maintain all slopes, medians, parkways and common areas outside of gated communities unless such areas are retained as private by the NCAC. City shall maintain facilities to standards in place today in the Newport Coast. City will use current landscape maintenance companies subject to City's competitive bid practices. 12 — Curbside Residential Refuse Collection. Upon effective date of annexation, City will pay for curbside residential trash collection (but not for collection from commercial, hotel, timeshare, or multi- family uses) for as long as similar refuse collection is provided "free" to residences in Newport Beach's pre -1996 city boundaries. Any future change to Measure Q (1996) that directs all residents to pay for trash collection City -wide shall apply to the Newport Coast as well, thus nullifying "free" refuse collection per this Condition. 13 -- Aviation Committee Appointment. Upon certification of reorganization, City Council shall appoint one or more Newport Coast representatives to the City's Aviation Committee. 14 -- SCE Encouragement. Upon certification of reorganization, City shall use its "best efforts" to encourage Southern California Edison to bury underground power lines (TBD) in the Newport Coast. 15 — Athletic Fields. The NCC2K has expressed a desire for a lighted athletic field to be permitted within the Newport Coast. The NCAC will recommend a location for this field (excluding Newport Ridge Park from any consideration) that minimizes homeowner impact. City will support such a recommendation provided that all lighting meets City standards.