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Agenda Item
ASR
Control 22-001124 |
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MEETING DATE: |
12/06/22 |
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legal entity taking action: |
Board of Supervisors and Orange County Flood Control
District |
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board of supervisors
district(s): |
5 |
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SUBMITTING
Agency/Department: |
County Executive Office (Approved) |
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Department contact
person(s): |
Thomas A. Miller
(714) 834-6019 |
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James Treadaway (714) 667-9700 |
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Subject: Transfer of County and OCFCD
owned properties to the City of Laguna Beach
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ceo CONCUR |
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Clerk of the Board |
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Concur |
Approved Agreement to Form |
Discussion |
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4/5 Vote |
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Budgeted: No |
Current Year Cost:
$22,000,000 |
Annual Cost:
N/A |
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Staffing Impact: |
No |
# of Positions:
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Sole Source:
N/A |
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Current Fiscal Year Revenue: N/A
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Prior Board Action: N/A
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RECOMMENDED ACTION(S):
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1. |
Find that the project is categorically exempt from the California Environmental Quality Act (CEQA), Class 5 (Minor Alteration in Land Use Limitations) pursuant to CEQA Guidelines, Sections 15305. |
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2. 3. |
Find that the property to be conveyed to the City of Laguna Beach, as set forth in the attached Cooperative Transfer Agreement between the County of Orange, Orange County Flood Control District and the City of Laguna Beach, and respective deeds, is not required for any County park use and is being conveyed to the City for continued park and beach recreational purposes. Find that the proposed conveyances to the City of Laguna Beach, as set forth in the attached Cooperative Transfer Agreement between the County of Orange, Orange County Flood Control District and the City of Laguna Beach, and respective deeds, will not interfere with the purposes of the Orange County Flood Control District and are consistent with the use of the property for flood control purposes. |
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4. |
Approve and authorize the execution of the Cooperative Transfer Agreement between the County of Orange, Orange County Flood Control District and the City of Laguna Beach which sets forth the terms and conditions for the County of Orange and Orange County Flood Control District respectively to quitclaim right, title, and interest to the City of Laguna Beach; and for the County of Orange to pay $22,000,000 to the City of Laguna Beach. |
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5. |
Authorize the Chief Real Estate Officer or designee to execute and carry out the terms of the Cooperative Transfer Agreement in substantially the form attached hereto as Attachment B, and to execute on behalf of the County of Orange and Orange County Flood Control District the respective quitclaim deeds in substantially the form attached hereto as Attachments C and D for all of the property interest contemplated to be transferred as well as the transfer of any improvements or fixtures that exist on the property, with minor modifications that do not increase the liability or cost to the County, and any other documents necessary to complete the contemplated transaction, and to perform all activities necessary to complete the project and fully transfer all of the property interests and improvements thereon to the City. |
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6. |
Approve and authorize the execution of the Assignment Agreement in substantially the form attached hereto as Attachment E between the County of Orange and the City of Laguna Beach to assign to the City of Laguna Beach all right, title and interest, in and to all licenses, leases, memoranda of understanding, and regulatory permits where assignable, located on or affecting those specific properties to be transferred in accordance with the Cooperative Transfer Agreement. |
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7. |
Authorize the Chief Real Estate Officer or designee to execute and make minor modifications to the Assignment Agreement, the Cooperative Transfer Agreement, and to alter the forms of quitclaim deeds attached, provided such modifications do not substantially alter the financial or affirmative obligations of the County of Orange or the Orange County Flood Control District. |
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8. |
Direct the Auditor-Controller, upon notification from the Chief Real Estate Officer or designee to issue checks or wire funds to the City of Laguna Beach for payment of a total not to exceed $22,000,000 under the terms of the Cooperative Transfer Agreement, which will include payments of $2 million upon execution of the Cooperative Agreement and $20 million once the transfers outlined in the Cooperative Agreement have been completed. |
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9. |
Authorize Auditor-Controller to increase appropriations in Fund 405, OC Parks CSA 26, by $22,000,000 offset with a decrease of Fund Balance – Restricted BSA 9720 in accordance with Government Code Sections 29130, 29125 and 25252. (requires four-fifths vote) |
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SUMMARY:
Approval of the proposed Cooperative Transfer Agreement, inclusive of the Assignment Agreement and forms of Quitclaim Deeds, attached thereto, will benefit the residents of the County of Orange by enabling the transfer of certain County of Orange and Orange County Flood Control District held property interests to the City of Laguna Beach (“City”), which will increase local control within its city limits as the beach properties primarily serve the surrounding local community, and the City will assume all associated operations, maintenance and services of the properties upon receipt of $22 million from the County of Orange.
BACKGROUND INFORMATION:
In 1987, the City annexed South Laguna Beach coastal
areas that include County of Orange and Orange County Flood Control District
held respective property interests of approximately 1.2 miles of coastline,
including the County owned interests at Aliso Beach and associated parking
lots, Camel Point Beach, Laguna Royale Beach, West Street Beach, Table Rock
Beach, Thousand Steps Beach, and County held easements within the City; as well
as the Orange County Flood Control District-owned parcel at Aliso Beach, (see
Attachment A - Location Map), (collectively the “Coastal Properties”). Ownership and responsibility for the Coastal
Properties did not get transferred to the City in the annexation, but instead
remained with the County of Orange (“County”) and Orange County Flood Control
District (“OCFCD”) respectively.
OCCR/OC Parks currently manages and operates the Coastal Properties which includes providing ocean lifeguard services, park ranger and security officer patrol services, maintenance, landscaping, and parking. Additionally, the County oversees the leased, concession building at Aliso Beach, which provides food, beer, and wine service.
OCFCD owns the Aliso Canyon Beach Outlet further identified as Facility Parcel Number J01-102.01 (“Outlet”), (see Attachment F – South Laguna Beach Right of Way Map). It functions as an outlet to the Pacific Ocean for Aliso Creek and as a public beach and recreational site. OCFCD does not own, operate, or maintain reaches of the Aliso Canyon natural creek or tributary that connect to this Outlet; therefore, OC Public Works staff recommends that the Board of Supervisors find that OCFCD ownership of the Outlet is not necessary for OCFCD purposes and approve the transfer of this property to the City in accordance with the proposed Cooperative Transfer Agreement (attached hereto as Attachment B).
Over the years, there has been interest in the City assuming the operations of County owned Coastal Properties within its City limits as most of the beaches are smaller, primarily serving the surrounding local community. In the interest of enhancing local control, providing consistent services, and allowing for enforcement of municipal codes, the City expressed interest in taking ownership and responsibility for the Coastal Properties. Over the last 12-months, the City and County have had several discussions regarding the transfer of the Coastal Properties and have negotiated terms including a total payment of $22,000,000 that will allow the City to offset operating and start-up costs.
On September 20, 2022, the City Council unanimously approved City staff to develop an agreement with the County by November 15, 2022, allowing the City to assume ownership of the Coastal Properties. On November 15, 2022, the City Council unanimously approved the Cooperative Transfer Agreement for transfer of the Coastal Properties. The transfer will not impact public access or beach operating hours and the Coastal Properties will continue to serve the community in the same function but under City management. Following Board of Supervisors approval of the Cooperative Transfer Agreement the County and the City will work to complete all tasks necessary to effectuate the transfer of the properties.
The proposed Cooperative Transfer Agreement involves:
1. Full and complete transfer of ownership from the County to the City of the Coastal Properties: Aliso Beach (and the associated Orange County Flood Control parcel), Camel Point Beach, Laguna Royale Beach, Table Rock Beach, Thousand Steps Beach, West Street Beach, all beach access points, amenities, parking lots and coastal areas, and County easements in other beach areas within the City.
2. Payment of $22 Million provided by the County to the City for transfer of the Coastal Properties. A $2 Million initial payment will be made within 30 days of the effective date of the Cooperative Transfer Agreement. The remaining $20 Million payment will be made upon recordation of the OCFCD Quitclaim Deed and all County Quitclaim Deed(s).
3. The City to take over the management, operation, and services of the Coastal Properties, including maintenance and landscaping, capital improvement projects and ocean lifeguard services by February 28, 2023.
4. The City to take over management and revenue generating opportunities of the Aliso Beach concession and parking lots.
5. Orange County Flood Control District to retain an easement where appropriate and needed within the Coastal Properties, to carry out the responsibilities related to the riprap revetment existing at the Outlet.
6. CEO Real Estate to complete recordation of Quitclaim Deeds for all property to be conveyed to Laguna Beach as described in the Cooperative Agreement and Attachments thereto.
Government Code Section 25365 permits the County, upon a 4/5 vote of the Board, to convey, quitclaim or otherwise transfer real property to a city if not required for county use.
Compliance with CEQA: The proposed project is Categorically Exempt (Class 5) from the provisions of CEQA pursuant to Section 15305, because it provides for minor alterations in land use limitations.
General Plan Conformity: This transfer of property has been approved by the City Council of the City of Laguna Beach.
FINANCIAL IMPACT:
Increased appropriations for this expense are requested in this ASR in Recommended Action Nine. If approved, Fund Balance – Restricted will be added in OC Parks Fund 405 FY 2022–23 Budget as detailed in the table below. OC Parks has sufficient Fund Balance for this transfer, and it will not impact Parks’ ability to serve other County parks and beaches.
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Fund/Budget Control |
Coding |
Amount |
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405 - OC Parks CSA26 |
405-012-405-9022-3100-0000 |
22,000,000 |
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405 - OC Parks CSA26 |
405-012-405-9503-9720 |
(11,000,000) |
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405 - OC Parks CSA26 |
405-012-405-9503-9720-P085 |
(5,500,000) |
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405 - OC Parks CSA26 |
405-012-405-9503-9720-P086 |
(5,500,000) |
Orange County Flood Control District has no financial obligations associated with the interest that they are quitclaiming.
STAFFING IMPACT:
N/A
REVIEWING AGENCIES:
OC Community Resources/OC Parks
OC Public Works
ATTACHMENT(S):
Attachment A – Location Map
Attachment B – Cooperative Transfer Agreement
Attachment C – Form of OCFCD Quitclaim Deed
Attachment D – Form of County Quitclaim Deed(s)
Attachment E – Assignment Agreement
Attachment F – South Laguna Beach Right of Way Map
Attachment G – Real Estate Questionnaire
Attachment H – Government Code Section 25365