LAFCO & UNINCORPORATED ISLANDS CORTESE-KNOX-HERTZBERG ACT OF - - PowerPoint PPT Presentation

LAFCO & UNINCORPORATED ISLANDS

CORTESE-KNOX-HERTZBERG ACT OF 2000

• The

Cortese–Knox–Hertzberg Local Government Reorganization Act

• f

2000 (Government Code Section 56000, et seq.) provides LAFCO with sole and exclusive authority for the initiation, conduct, and completion of changes of organization and reorganization for cities and districts.

• The State Legislature has recognized that pockets, or islands, of unincorporated

territory that are surrounded or “substantially surrounded” by incorporated cities create governance and service delivery inefficiencies and deficiencies.

• To facilitate the annexation of unincorporated islands to contiguous cities, the State

Legislature has adopted specific provisions in the Government Code that requires LAFCO annexation approval, and may waive the protest proceedings if LAFCO makes certain findings and determinations

GOVERNMENT CODE SECTION 56375 (a)(4)

• (4) A commission shall not disapprove an annexation to a city, initiated by resolution, of

contiguous territory that the commission finds is any of the following:

• (A) Surrounded or substantially surrounded by the city to which the annexation is

proposed or by that city and a county boundary or the Pacific Ocean if the territory to be annexed is substantially developed or developing, is not prime agricultural land as defined in Section 56064, is designated for urban growth by the general plan of the annexing city, and is not within the sphere of influence of another city.

• (B) Located within an urban service area that has been delineated and adopted by a

commission, which is not prime agricultural land, as defined by Section 56064, and is designated for urban growth by the general plan of the annexing city.

• (C) An annexation or reorganization of unincorporated islands meeting the requirements of

Section 56375.3.

GOVERNMENT CODE SECTION 56375.3

• 56375.3. (a) In addition to those powers enumerated in Section 56375, a commission

shall approve, after notice and hearing, the change of organization or reorganization of a city, and waive protest proceedings pursuant to Part 4 (commencing with Section 57000) entirely, if all of the following are true:

• (1) The change of organization or reorganization is initiated on or after January 1, 2000.
• (2) The change of organization or reorganization is proposed by resolution adopted by

the affected city.

• (3) The commission finds that the territory contained in the change of organization or

reorganization proposal meets all of the requirements set forth in subdivision (b).

GOVERNMENT CODE SECTION 56375.3 (cont.)

• (b) Subdivision (a) applies to territory that meets all of the following requirements:
• (1) It does not exceed 150 acres in area, and that area constitutes the entire island.
• (2) The territory constitutes an entire unincorporated island located within the limits of a

city, or constitutes a reorganization containing a number of individual unincorporated islands.

• (3) It is surrounded in either of the following ways:
• (A) Surrounded, or substantially surrounded, by the city to which annexation is

proposed or by the city and a county boundary or the Pacific Ocean.

• (B) Surrounded by the city to which annexation is proposed and adjacent cities.

GOVERNMENT CODE SECTION 56375.3 (cont.)

• (4) It is substantially developed or developing. The finding required by this paragraph shall

be based upon one or more factors, including, but not limited to, any of the following factors:

• (A) The availability of public utility services.
• (B) The presence of public improvements.
• (C) The presence of physical improvements upon the parcel or parcels within the area.
• (5) It is not prime agricultural land, as defined by Section 56064.
• (6) It will benefit from the change of organization or reorganization or is receiving benefits

from the annexing city.

• (7) Not located within a gated community currently served by a Community Services District.

CALAFCO Annual Conference – San Diego October 26, 2017

LAFCO & UNINCORPORATED ISLANDS

RESCUING THE CITY CASTAWAYS!

CALAFCO 2017 Conference

Unincorporated Islands: Rescuing City Castaways

Orange County LAFCO Unincorporated Islands Program

Luis Tapia, Policy Analyst II

County of Orange Demographics

Demographics

• Largely built-out, urban
• Area: 799 square miles
• Population: 3,152,376

Governance:

• Cities: 34
• Special Districts: 35
• JPAs: 70
• HOAs (concentrated in southern

portion of County)

Orange Unincorporated Islands

Remaining Unincorporated Islands: 33

• 23 small islands (under 150 acres)
• 10 large islands (190 - 4,500 acres)

Total Unincorporated Territory: 197,562 acres Island Population: 125,792

• By 2033, the population will increase

by approximately 44,000 residents.

Background of Orange Unincorporated Islands

The County of Orange Board of Supervisors:

• In 1994, the County of Orange declared municipal

bankruptcy.

• Adopted a restructuring plan for county government that

identified the following:  County’s provision of municipal-type services is costly and duplicative  Unincorporated areas are served more efficiently by surrounding cities  The County should focus on regional, not local, services.

Background of Orange Unincorporated Islands

Orange County LAFCO:

• In 2000, the Commission began proactive collaboration

with the County and cities with adjacent islands.

• For 17 years, the Commission has identified its island

annexation program as a “high” priority project in the annual work plans.

• OC LAFCO has evolved as the leader and facilitator of

island annexation discussions.

OC LAFCO’s Unincorporated Island Program

 2000-2006: Through joint partnership with the County, the Commission annexed over 40 islands.  2008-2010: As an incentive to annex, the Commission established an application fee waiver program for small islands. This encouraged and led to several island annexations.  2011-2012: The Commission established an Islands Task Force comprised of LAFCO Commissioners and staff, representatives from the County Supervisors’ and CEO and affected cities. This effort led to more annexations.  2013-Present: The Commission approved a more concentrated effort on islands with more likelihood of

• success. This has led to successful annexations and several pending with likelihood of annexation.

The Commission continues to waive annexation fees for small islands.

OC LAFCO’s Unincorporated Islands Accomplishments

As of 2017:  50 islands annexed  33 islands remaining, 7 underway

What makes it work in Orange County?

Collaboration:

• Joint effort of LAFCO, County and cities to address annexation obstacles

Leadership:

• Islands program identified as “high” priority in LAFCO work plan
• Commission waives annexation fees for small islands
• LAFCO serves as facilitator for stakeholder discussions
• LAFCO, County and City conduct community outreach and

workshops Resources:

• Islands Webpage
• Islands fiscal profiles
• Public relations materials for residents (i.e. FAQ sheets, annexation reports)

OC LAFCO Unincorporated Islands Web Page

Fiscal Profiles:  Map for each island  Overview of the demographical data  Current service providers  Cost and revenue analysis

Islands Fiscal Profiles

What are the Challenges?

Resident Opposition: Community Identity Additional taxes or fees Stricter oversight (County v. City) Infrastructure deficiencies and service costs No sales tax base Low priority for cities

Case Study: Sunset Beach Annexation to City of Huntington Beach

Sunset Beach Community:

• 134 acres (residential & commercial)
• Population: 1,400
• Largely residential and small

commercial area

Key Takeaways for Making Island Annexations Work

Proactive leadership of LAFCO Collaboration among all stakeholders Community outreach and input from the public Benefit to agencies and public Delivery of more efficient and cost effective municipal services

OC LAFCO Unincorporated Islands Program

Luis Tapia, Policy Analyst II

CALAFCO Annual Conference – San Diego October 26, 2017

LAFCO & UNINCORPORATED ISLANDS

RESCUING THE CITY CASTAWAYS!

Island Annexations and

Fresno

City/County competition 1955-1974: a proliferation of special districts

• 37 Waterworks Districts,
• 13 County Service Areas,
• 3 Fire Districts,
• 1 County Water District,
• 1 Police District,
• 2 Recreation and Parks Districts, and
• 1 Public Utility District.

City of Fresno, circa 1974

City of Fresno, circa 1974

Sunnyside Pinedale Fort Washington Tarpey Highway City Fig Garden Figarden Calwa Mayfair Easterby Sierra Sky Park

City and County seek a solution…

• 1974-82 Fresno General Plan policies develop annexation policies to

“Unify the metropolitan area and establish logical boundaries and service areas.”

• 1983 County establishes and later rescinds its referral policies in

protest over City’s brusque annexation process.

• High-level negotiations result in the 1983 City/County

“Joint Resolution on Metropolitan Planning”

• City “Urban Unification Team” starts assertive annexation program

(circa 1983-1999)

• 1990 City/County MOU process includes “Standards for Annexations”

…while the citizenry resists

• Why annex if all municipal service are already provided?
• Anti-City bias: too developer-friendly; city council and staff’s

attitude seen as aggressive, obnoxious; worried about loss of neighborhood identity.

• County responsive to complaints.
• LAFCo and the SOI are incidental to the process:
• CK protest hearings conducted by the City Council
• LAFCo is still a County department
• Events are viewed through the County’s lens

Early 2000s Island Annexation Program

Then…the “Great Recession”

• Development stops…
• Revenue dries up…
• Staff lost…
• City and County leadership

changes…and

• Island annexation program

becomes a thing of the past.

The New Normal

2014 Fresno GP focuses on infill of incorporated area balanced with fringe growth. Current City management sees an infrastructure “Pig in a Poke” with annexations City perceives inhabited annexations as net revenue loss unless annexed to the CFD; MOU with County means insufficient property tax revenue. City already providing metropolitan sewer, wastewater, water, fire, law enforcement. County islands? City can live with them, now. City and County ready to spend over the problems.

Lessons Learned…

• Parallel development created parallel civic and political cultures.
• City underestimated the effect of this cultural divide in its outreach.
• CKH island annexation program merely continued the earlier urban

unification program; program faltered for historic reasons.

• Buy-in by city and county is essential, but so is an investment by these

agencies in the neighborhoods to be annexed.

• LAFCo did not appear to be influential in either program.
• Problem has “solved” itself for now.

For now, the County islands are the …

CALAFCO Annual Conference – San Diego October 26, 2017

LAFCO & UNINCORPORATED ISLANDS

RESCUING THE CITY CASTAWAYS!

“Unincorporated Islands: Rescuing City Castaways!”

Stephen Lucas Butte LAFCO Executive Officer

2017 CALAFCO Annual Conference Thursday, October 26, from 1:45-3:15 pm.

The Butte Experience…

• Baseline – The Law
• Establish a Goal
• Set Policies
• Engage Agencies
• Play the Cards Dealt
• Obstacles
• Lessons

Set the Baseline and Use the Law

• Pre-2000 42 islands in the City of Chico
• 2000 -

Island Law (56375.3) Shall Approve with Protest Waiver until 2007

• 2004 -

SB 1266 Doubled Island Size from 75 to 150 acres (56375.3)

• 2006

AB 2223 Extended Waiver of Protest Until 2014

• 2013

AB 743 Removed 2014 Sunset Date on Waiver of protest and resets island eligibility date from 2007 to 2014 (56375.4). This was a huge legislative move and allowed us to revisit all previously surrounded islands.

Establish a Goal

LAFCO has actively and aggressively pursued dozens of island annexations based on a philosophy of the status quo will never improve unless there is a change in the structure that delivers the improvements. It was clear that while some issues were tough to resolve, annexation would lead to new opportunities for solutions (not to mention 16 other factors we considered to support a logical annexation program).

Set Policies (and use them!)

• LAFCO adopted policies requiring cities

to utilize the island law whenever applicable or show good cause why not?

• The Commission consistently
• bserved that the failure to

annex islands would influence all future annexation proposals submitted.

Policy “Encouragement”

A little of this ..... a little of that.

• Island Annexations. It is the policy of LAFCO to encourage the most efficient delivery of

public services through the elimination of island areas, promote orderly city boundaries and reduce the cost and time of processing applications and to this end, all annexations to cities require that applications for lands meeting the criteria of the island annexations law shall be so configured and supported by the appropriate resolution of application. Applications not complying with this policy would be deemed incomplete by the Commission staff as not supporting the creation of logical and orderly boundaries unless the local agency provides clear and substantial arguments that the elimination of island areas would be detrimental to the health, safety or welfare of the affected community of interest. (REVISED:

Broadest Possible Metric

“Substantially Surrounded” territory is that which is contiguous to incorporated territory that includes privately owned lands, publicly owned lands, and associated rights-of-way including roads, railroads and deeded easements, in one or more of the following ways:

• Greater than 50% of the total length of the external boundary of the

proposed area is contiguous to incorporated territory.

Outreach…

• Meet with agency staff (County and City)
• LAFCO/City Council Subcommittee
• Neighborhood Meetings
• Local Press
• Watch for Saboteurs
• Social Justice Groups

The tale of one city So How’d That Work Out?

City of Chico Annexation Effort

• Since 2000 - 151 Annexations
• 41 island annexations
• 2 DUC islands Chapman and Mulberry
• Corrected over 60 sewer

extension violations.

• Established Agreement for all

remaining annexation areas.

Stand Your Ground

Island Obstacles

• #1 - Political Will
• Revenue Sharing Agreements
• Public Trust
• Infrastructure Deficiencies

One Lesson Learned…

Thank you kindly for your attention!

CALAFCO Annual Conference – San Diego October 26, 2017

LAFCO & UNINCORPORATED ISLANDS

RESCUING THE CITY CASTAWAYS!

CALAFCO Annual Conference – San Diego October 26, 2017

LAFCO & UNINCORPORATED ISLANDS

RESCUING THE CITY CASTAWAYS!

2017 CALAFCO LAFCO Ann nnual ual Confer erenc ence, e, San Diego ego Neeli elima ma Pal Palache cherla

Isl sland and An Anne nexations xations in in Sa Sant nta a Cl Clara ara Co County unty

What at is an an Isla land? nd?

CITY A

USA

CITY B

Unincorporated lands located within a city’s Urban Service Area (USA) boundary

Isla land nd Anne nexat xations ions Fundamen ndamental tal to Longstan gstanding ng Countywide

• untywide

Growth wth Ma Manag agement ement Poli licies cies

Orderly, planned expansion

• f cities –

within adopted USAs Coun unty tywide wide Growth wth Managem gemen ent t Policies cies

LAFCO

Eventual annexation of islands by surrounding cities Urban development within cities – not in unincorporated areas

• Cities control island annexations – not LAFCO, not the County
• Master property tax agreement between cities and the County
• County’s successful Urban Pockets Program emphasizes community outreach

and education (1997- 2001)

• San Jose and the County’s settlement agreement on unrelated issue requires

San Jose to annex its islands (2001, 2006)

Isla land nd An Anne nexat xations ions in San anta ta Cla lara a County unty

LAFCO inventories and maps all islands – provides the information to the cities (2004)

Santa Clara LAFCO’s Island Annexation Program

• Prior to seeking boundary expansions, cities should:
• Complete annexation of all islands that are eligible for streamlined

annexation process

• Hold community meetings and adopt an annexation plan, apply a pre-

zoning designation and initiate annexation for islands >150 acres Exceptions for health and safety situations or minor corrective actions

LAF AFCO CO Adopts

• pts Isla

land nd An Anne nexat xation ion Poli licie cies s (2 (2005) 005)

• Encourage the County to remove incentives for island residents to remain

unincorporated by making its development standards comparable to surrounding city

LAF AFCO CO Adopts

• pts Isla

land nd An Anne nexat xation ion Poli licie cies s (2 (2005) 005)

LAFCO’s Island land An Anne nexation xation Pr Program gram Ou Outr treach each Mat aterial al

LAFCO prepares and distributes annexation guide

LAFCO’s Island land An Anne nexation xation Pr Program gram

LAFCO works collaboratively with cities and the County to:

• Conduct workshops for cities on island annexation process and provide

sample resolutions and reports

• Help prepare Annexation Answer Books
• Attend community meetings
• Work with SBE to reduce mapping/fee requirements for island annexations

LAFCO’s Island Annexation Program Incentives

• LAFCO waives processing fees for

annexation of entire islands

• County covers costs for preparing island

annexation maps and reports

• County covers SBE filing fees for island

annexations

• County prioritizes road maintenance in

islands slated for annexation or reimburses cities for road maintenance costs

LAFCO’s Island land An Anne nexation xation Pr Program gram Accom ccompli plishments shments

To date… # of cities participated: 10 # of islands annexed: 88 # of acres annexed: 2,282 Total population annexed: 19,145

• Not all cities willing to use streamlined annexation process
• # of remaining islands*

150 acres or smaller: 73 larger than 150 acres: 14

LAFCO’s Island land An Anne nexation xation Pr Program gram Challenges allenges

LAFCO’s Island land An Anne nexation xation Pr Program gram Costs sts

LAFCO fees waived: $88,000 Costs covered by the County

• SBE fees: over $51,000
• Annexation maps and reports: over $260,000
• Road upgrades as incentives in islands slated for annexation:

$$$

Cas ase e Stu tudy dy #1 Two

• Cities

ties an and LAFCO FCO Str trike a D a Deal al

• San Jose island residents petition

to be annexed to Campbell

• San Jose seeks revenue

neutrality

• LAFCO requires logical

boundaries

• Result: 40-year agreement terms

and detachment of additional lands from San Jose

Cas ase e Stu tudy dy #2 LAFCO FCO & Ci City ty Find nd Win-Win

• Saratoga seeks to expand

USA, but has 6 islands

• LAFCO requests Saratoga’s

plan for its islands

• Saratoga’s plan:

 Apply for USA retraction &

exclude some islands

 Gather community support /

info for annexing island >150 acres

 Initiate annexation of remaining islands

Cas ase e Stu tudy dy #3 The Saga Continues…

• City seeks USA expansion, but

has 3 islands eligible for streamlined annexation

• City’s policy to annex only the

willing

• LAFCO policies call for

annexation of islands before expansion

• LAFCO conditional approval in

2013

Qu Ques estions tions

www.SantaClaraLAFCO.org

LAFCO & UNINCORPORATED ISLANDS