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HomeMy WebLinkAbout09 ANNEXATION REQUEST 17TH & TUSTIN AVE 11-15-04 AGENDA REPORT Agenda Item ~9 Reviewed: City Manager Finance Director ~ MEETING DATE: NOVEMBER 15, 2004 TO: WILLIAM HUSTON, CITY MANAGER FROM: COMMUNITY DEVELOPMENT DEPARTMENT SUBJECT: POTENTIAL ANNEXATION OF A 24-ACRE UNINCORPORATED ISLAND GENERALLY LOCATED AT THE NORTHEAST CORNER OF SEVENTEENTH STREET AND TUSTIN AVENUE SUMMARY: At the October 4, 2004, City Council meeting, Dr. Paul Lewanski asked the City Council to consider supporting a possible sphere of influence amendment that would place the 24- acre unincorporated island generally located at the northeast corner of Seventeenth Street and Tustin Avenue within the City of Tustin Sphere of Influence and possibly result in the future annexation of the area to the City of Tustin. Dr. Lewanski noted that the area is currently within the City of Santa Ana Sphere of Influence and is proposed to be annexed to Santa Ana, and that he and the other residents of the area are opposed to annexation by the City of Santa Ana. The City Council requested that staff agendize this matter for further discussion. Staff met with Local Agency Formation Commission (LAFCO) staff members to discuss this matter and any broader associated issues. This report provides some background information and identifies some of the issues associated with this matter. RECOMMENDATION That the City Council receive and file this report. FISCAL IMPACT This report is for information only; therefore, the fiscal impact of annexation is not identified at this time. BACKGROUND AND DISCUSSION On January 1, 2001, a State law that streamlined the annexation process for County islands that are fewer than seventy-five (75) acres in size went into effect. The purpose of the law (Assembly Bill 1555) is to encourage cities and counties to annex inefficient unincorporated urban land and to improve the delivery of public services to residents within these unincorporated islands. Since 2001, the Orange County Local Agency Santa Ana County Island November 15, 2004 Page 2 Formation Commission (LAFCO) and the County of Orange have been working cooperatively to facilitate the annexation of these County islands to their respective cities throughout the County. One of these unincorporated islands is the 24-acre island generally located at the northeast corner of Seventeenth Street and Tustin Avenue. The island is currently within the City of Santa Ana Sphere of Influence. The County island is bounded by Seventeenth Street to the south, Tustin Avenue to the west, and the SR-55 Freeway to the east (Exhibit A). Existing land uses within the County island include 49 single-family residences, 32 multiple family residences, strip commercial, and a 3.3-acre vacant parcel on Tustin Avenue. The City of Santa Ana, LAFCO, and the County of Orange conducted community workshops and an informal neighborhood meeting in October 2003 and April and June 2004 to discuss the potential annexation to the City of Santa Ana. At these meetings, the residents of the County island expressed concerns about perceived lower property values if annexed, costs to convert to City sewer, potential reduction of street maintenance, and the quality of emergency services. At the October 4, 2004, Tustin City Council meeting, a resident of the County island, Dr. Paul Lewanski, requested that the City of Tustin consider the possibility of annexing the 24-acre unincorporated island. Dr. Lewanski noted that he represented the residents of that area, and the majority was opposed to annexation to the City of Santa Ana. In response to Mr. Lewanski's request, the City Council requested that the matter be agendized for further discussion and that staff identify the major issues. Staff also held a meeting with LAFCO's staff members to discuss the matter and any broader associated issues. To date, City staff has identified the following preliminary associated issues regarding the County island. Sphere of Influence The County Island has been within the Santa Ana sphere of influence since the 1970s. However, the residents can apply to LAFCO for a sphere of influence amendment. Although LAFCO staff has indicated they would not support the sphere of influence amendment if requested by the residents, it is possible that the LAFCO Board would approve the amendment with or without an approval recommendation from LAFCO staff. Amending the sphere of influence for this County Island may set a precedent for future sphere of influence amendments. Residents of other similar single-family neighborhoods adjacent to Tustin may wish to deannex from Santa Ana and annex to Tustin because they associate more with Tustin than with Santa Ana. However, for this to occur, the City of Santa Ana and LAFCO would have to concur with the deannexation,. Santa Ana County Island November 15, 2004 Page 3 Resident Identification with Tustin According to Mr. Lewanski, the neighborhood spokesperson, the residents of the County Island would not oppose annexation to Tustin but are strongly opposed to annexing to Santa Ana. Mr. Lewanski has said that the residents associate more with Tustin than with Santa Ana because they are within the Tustin Unified School District, are served by Tustin water and cable, use our parks and senior center, and support our businesses. The Process On September 20, 2004, the Santa Ana City Council continued their consideration of the annexation for sixty (60) days. If the Santa Ana City Council approves the initiation of the annexation, the City of Santa Ana would submit its application to LAFCO. Recently, LAFCO determined that the annexation would not follow the streamlined approval process under the County Islands Program but would be subject to a protest hearing, because the annexation to the City of Santa Ana would require a concurrent detachment of territory from the Municipal Water District of Orange County (MWDOC). Therefore, LAFCO would hold a protest hearing and if 50 percent or more of the voters residing in the territory protest the reorganization, the proposed reorganization shall be abandoned. If the residents of the County island were to submit an application to LAFCO for a sphere of influence amendment, LAFCO would hold a public hearing and make a decision on the application. If the sphere amendment is approved by LAFCO, the residents could submit a petition to be annexed to Tustin. Fiscal Impacts To identify revenue sources and the costs to the City of Santa Ana of providing municipal services to the area, LAFCO had a Fiscal Feasibility Report prepared. The April 11, 2002, Report identified an annual net revenue surplus of $31,705. However, infrastructure needs were not taken into account. For example, the area is on septic, and the construction of new sewer mains was estimated by the City of Santa Ana to cost at least $240,000. According to Santa Ana staff, there may also be storm drain and street lighting deficiencies, including the possible need for a small pump station. City of Tustin staff has not conducted an in-depth analysis of these issues. If the area were eventually annexed to Tustin, a General Plan Amendment and Prezone would be required prior to annexation. The processing of these actions and associated work efforts would require staff time that may result in the need to reprioritize other projects. Santa Ana County Island November 15, 2004 Page 4 Staff will continue to monitor the status of the County island and will report back to the City Council as necessary or take other actions as deemed appropriate by the City Council. .Jf1Jft~" ..t.J+~) Scott Reekstin Senior Planner a~ ~-/-l Elizabeth A. Binsack Community Development Director Exhibit A: Land Use Map S,ICddICCREPOR1\Santa Ana Island Anne,"'on No,ember 2OO4.do<: J AV. MULTI FAMILY RESIDENTIAL MULTI FAMILY RESIDENTIAL <.> '" '" ~ == W w a: I.L II') II') R ETA C E N I L E R 0 C E EXHIBIT A C I I , 01 T" .. ; "