Agenda Item   

AGENDA STAFF REPORT

 

                                                                                                                        ASR Control  19-000880

 

MEETING DATE:

10/22/19

legal entity taking action:

Board of Supervisors

board of supervisors district(s):

3

SUBMITTING Agency/Department:

County Executive Office   (Approved)

Department contact person(s):

Jessica Witt (714) 834-7250 

 

 

Lala Oca Ragen (714) 834-7219

 

 

Subject:  Cielo Vista Annexation Cooperative and Property Tax Agreements

 

      ceo CONCUR

County Counsel Review

Clerk of the Board

Concur

Approved Resolution to Form

Discussion

 

 

3 Votes Board Majority

 

 

 

    Budgeted: N/A

Current Year Cost: N/A

Annual Cost: N/A

 

 

 

    Staffing Impact:

No

# of Positions:

Sole Source: N/A

    Current Fiscal Year Revenue: N/A

  Funding Source: See Financial Impact section

County Audit in last 3 years: No

 

 

    Prior Board Action: 9/12/2017 #38, 12/13/2016 #63

 

RECOMMENDED ACTION(S):

 

 

1.

Approve Cooperative Agreement with City of Yorba Linda for the annexation of the Cielo Vista Development Project to the City of Yorba Linda.

 

2.

Adopt Resolution approving property tax exchange between the City of Yorba Linda and the County of Orange for the annexation of the Cielo Vista Development Project.

 

3.

Upon final approval by the Orange County Local Agency Formation Commission of the annexation of the Cielo Vista Development Project in unincorporated Orange County, dissolve the annexation area with the City of Yorba Linda assuming the services for the area, and the City of Yorba Linda receiving a transfer of 100 percent of the park fees collected by the County of Orange for the Cielo Vista Development Project pursuant to the Quimby Act and Orange County Codified Ordinance section 7-9-520 et seq.

 

 

 

 

SUMMARY:

 

Annexation to the City of Yorba Linda of the Cielo Vista Development Project within its sphere of influence will allow the City of Yorba Linda to provide municipal services to that unincorporated area of the County.

 

 

 

BACKGROUND INFORMATION:

 

In November 1985, the City of Yorba Linda (City) and the County of Orange (County) entered into the "Master Property Tax Transfer Agreement Between the County of Orange and the City of Yorba Linda to Provide for Property Tax Exchange in Areas Annexed by the City" (1985 Master Property Tax Agreement).  The 1985 Master Property Tax Agreement determined the property tax allocation between the parties for existing and future annexations of County islands to the City. 

 

On December 13, 2016, the Orange County Board of Supervisors (Board) approved the Cielo Vista Project (Cielo Vista) Alternative 5 Area Plan and certified Environmental Impact Report (EIR) No. 615, including the adoption of the Statement of Facts and Findings and adoption of the Mitigation and Monitoring Reporting Program. Cielo Vista is currently an undeveloped property located in the northeast quadrant of the City within an unincorporated area of Orange County.  It lies generally north of Via del Agua/Stonehaven Boulevard and east of Dorinda Road and San Antonio Road.  The Alternative 5 Area Plan proposed the development of the approximately 84-acre site to allow for a maximum of 83 residential single-family homes.

 

Subsequently, on September 12, 2017, the Board approved Vesting Tentative Tract Map 17341 to subdivide Cielo Vista.  The approved tentative map includes 80 single-family residential lots on approximately 42.1 acres of the southerly portion of the overall project site, and preservation of the northerly remainder of the property (42.7 acres) as permanent open space. 

 

On December 4, 2018, the City, by Resolution 2018-5601, approved an application to the Orange County Local Agency Formation Commission (OC LAFCO) for the annexation of Cielo Vista, which is within the City's sphere of influence.  The City and County have since worked closely to develop the following two key documents for the Cielo Vista annexation:

 

1.

Cooperative Agreement: This agreement outlines the parties' roles and responsibilities during the construction of Cielo Vista and through implementation of the Development Approvals.  The County will be entitled to charge all fees for permits and approvals related to the construction and development of the property.  Once a particular area is completed, the City will assume regulatory responsibility for that portion of the property.  The County will also collect park fees for the development of Cielo Vista pursuant to the Quimby Act and based on County Codified Ordinance section 7-9-520 et seq., and will transfer to the City 100 percent of such park fees.  Based on the County's current park fee schedule, the Quimby fees amount to $531,200 (80 residential lots at $6,640 each).

 

2.

Resolution Approving the Property Tax Exchange agreement: The City and County have agreed to use the 1985 Master Property Tax Agreement for the Cielo Vista annexation, whereby the City will receive 56.3741 percent and the County will receive 43.6259 percent of the County's share of the 1 percent basic levy property tax generated within the area to be annexed.  The Structural Fire Fund will remain unchanged as the City is a member of the Orange County Fire Authority. The City operates its own library system, and thus will receive 100 percent of the Orange County Public Library Fund generated from the annexation area.

 

The City approved the Cooperative Agreement and its own Property Tax Resolution at its October 1, 2019, City Council meeting.  The County Executive Office (CEO) recommends approval and execution of the City Council-signed Cooperative Agreement, which will allow the County to continue processing permits, licenses, consents and inspections associated with the development of Cielo Vista.

 

The CEO also recommends adoption of a Resolution approving the parties' property tax exchange agreement pursuant to the 1985 Master Property Tax Agreement.  Upon annexation of Cielo Vista to the City and assumption of municipal services by the City, the specified proportional shares will remain as the allocation of tax revenues between the City and the County for all future years, unless the parties agree by written Resolution to adjust the allocation proportions.

 

 

 

FINANCIAL IMPACT:

 

The terms of the Cooperative Agreement include the following:

 

1.

County shall retain fees and obligations from the construction and development of Cielo Vista.  See sections 1.1.9 (Development Approvals); 3.3 (Fees); Exhibit C (Fees and Obligations - Fees Retained by County).

 

2.

County shall collect park fees for the development of Cielo Vista based on Orange County Codified Ordinance section 7-9-520, et seq. and shall transfer to the City 100 percent of such park fees.  See section 4.5 (Transfer of Park Fees); Exhibit C (Fees and Obligations - Fees Retained by City).

 

 

 

 

STAFFING IMPACT:

 

N/A

 

 

 

REVIEWING AGENCIES:

 

OC Public Works

 

ATTACHMENT(S):

 

Attachment A - Cooperative Agreement
Attachment B - Property Tax Resolution