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Annexation No. 2018-01 for the County Island Annexation at Seventeenth Street and Tustin Avenue September 3, 2019 Page 5 Project Application Form Submittal to OC LAFCO Upon approval of the annexation by the City Council, staff will immediately begin the annexation process with the Orange County Local Agency Formation Commission (OC LAFCO). To initiate this process, staff will formally submit a Project Application Form to OC LAFCO. Based on discussions with OC LAFCO staff, the annexation process is expected to take several months to complete. It is anticipated that the County island will become part of Santa Ana by early 2020. Change in Ward Boundaries The proposed annexation will result in a change to the City's boundary lines, expanding the City by an additional 24.78-acres. In conjunction, the annexation will also result in a need to change the ward boundaries for Ward 3 to be consistent with the new City boundaries. City Charter Section 101.2 allows ward boundaries to be modified under certain conditions, including as part of an annexation action such as the one proposed. The change in ward boundaries is a two phase process, with the Council completing the first phase at the May 7, 2019 Council meeting. As required by Charter Section 101.4, the City Council approved a resolution declaring a Notice of Intent to change the boundaries of Ward 3. The proposed action is the second phase of the ward change, with this proposal formally changing the ward boundaries once the annexation is completed. CONCLUSION The proposed action items are necessary for the City of Santa Ana to complete the annexation of the 24.78-acre County Island. Based upon staffs analysis, the City's support of the Orange County Annexation Island Program, and the prior actions of the City Council and Planning Commission, staff recommends that the City Council approve the CEQA determination for the annexation and adopt resolutions approving Annexation No. 2018-01, the Property Tax Exchange Agreement with the County of Orange, and General Plan Amendment No. 2018-04. In addition, staff recommends that the Council adopt ordinances approving Amendment Application No. 2018-07 and the change to the boundaries of Ward 3. Further, staff recommends that the Council authorize the execution of a Cooperative Agreement between the City and the County of Orange for the acceptance of one-time funds in the amount of $711,841, to allow the County to complete the processing of development projects within the annexation area, and authorize staff to submit a Project Application form to the Orange County Local Agency Formation Commission (OC LAFCO). Finally, staff recommends that the Council authorize the execution of a Water Service Agreement with the City of Tustin. STRATEGIC PLAN ALIGNMENT Approval of this item supports the City's efforts to meet Goal #3 - Economic Development, Objective #2 (create new opportunities for business/job growth and encourage private development through new General Plan and Zoning Ordinance policies). 75C-5