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HomeMy WebLinkAbout75C - PH ANNEX AGMNTREQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: SEPTEMBER 3, 2019 TITLE: PUBLIC HEARING —ANNEXATION NO.2018- 01 TO ADOPT A COOPERATIVE AGREEMENT BETWEEN THE CITY AND COUNTY OF ORANGE IN AN AMOUNT OF $711,814, AUTHORIZE STAFF TO SUBMIT AN ANNEXATION APPLICATION TO THE ORANGE COUNTY LOCAL AGENCY FORMATION COMMISSION, APPROVING A PROPERTY TAX EXCHANGE AGREEMENT WITH THE COUNTY OF ORANGE, APPROVING GENERAL PLAN AMENDMENT NO. 2018-04 AND AMENDMENT APPLICATION NO. 2018-07, AUTHORIZING A WATER SERVICE AGREEMENT WITH THE CITY OF TUSTIN AND APPROVING A CHANGE IN WARD 3 BOUNDARIES FOR THE ANNEXATION OF A 24.78-ACRE COUNTY ISLAND AT THE NORTHEAST CORNER OF SEVENTEENTH STREET AND TUSTIN AVENUE — CITY OF SANTA ANA APPLICANT (STRATEGIC PLAN NO. 3,2) CI MANAGER RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: APPROVED ❑ As Recommended ❑ As Amended ❑ Ordinance on 16' Reading ❑ Ordinance on 21d Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO FILE NUMBER 1. Approve the CEQA determination of a Categorical Exemption (Class 19) for the proposed County island annexation. Adopt a resolution approving Annexation No. 2018-01 for a 24.78-acre County Island, detachment of the same territory from the Municipal Water District of Orange County and authorizing staff to submit a Project Application form to the Orange County Local Agency Formation Commission (OC LAFCO). 3. Authorize execution of a Cooperative Agreement between the City and the County of Orange for the acceptance of one-time funds in the amount of $711,814 and to allow the County to continue to process active development projects within the annexation area. 75C-1 Annexation No. 2018-01 for the County Island Annexation at Seventeenth Street and Tustin Avenue September 3, 2019 Page 2 4. Adopt a resolution approving a Property Tax Exchange Agreement with the County of Orange for the properties to be annexed. 5. Adopt a resolution approving General Plan Amendment No. 2018-04 to predesignate properties on the City's General Plan Land Use Map and make modifications to various elements of the General Plan. 6. Adopt an ordinance approving Amendment Application No. 2018-07 to prezone properties to be consistent with the City's zoning designations. 7. Authorize execution of a Water Service Agreement between the City of Santa Ana and the City of Tustin. 8. Adopt an ordinance approving the change in Ward 3 boundaries pursuant to City Charter Section 101.2. EXECUTIVE SUMMARY In June 2018, the City Council directed staff to initiate the process to annex a 24.78-acre County island generally located at the northeast corner of Seventeenth Street and Tustin Avenue within the City's sphere of influence and continue discussions with the County and the Local Agency Formation Commission (OC LAFCO) regarding the proposed annexation. In response, staff has been working with staff from OC LAFCO, the County of Orange and the City of Tustin on the documents needed to complete the annexation. Included with this report are several documents requiring Council approval, which include the approval of the annexation of an unincorporated County island, the submittal of an application to complete the annexation with OC LAFCO, and a water service agreement with the City of Tustin to allow Tustin to continue to provide water service within the annexation area. In addition, a Cooperative Agreement between the City and the County of Orange is also required. This agreement will allow the City to accept a one-time payment from the County for public improvements, will allow a property tax sharing agreement for the properties to be annexed to the City, and will allow the County to complete the development process for two developments currently under review by the County. Other actions needed by the Council include a general plan amendment and an amendment application to prezone and pre -designate the general plan designation for the parcels located within the proposed annexation area as well as various sections of the General Plan that need to be amended to accurately reflect the annexation area. These items were presented to the Planning Commission and recommended for approval in December 2018. Finally, the annexation will result in a modification to the City's boundary lines. To ensure the Ward boundaries are consistent with the City boundaries, a change in the Ward 3 boundaries needs to be approved. 75C-2 Annexation No. 2018-01 for the County Island Annexation at Seventeenth Street and Tustin Avenue September 3, 2019 Page 3 DISCUSSION In June 2018, the City Council directed staff to initiate the annexation process for the 24.78-acre County island at the northeast comer of Seventeenth Street and Tustin Avenue within the City's sphere of influence. Parcels within the annexation area include 49 single-family residential parcels, three commercial parcels, two multi -family residential parcels and three vacant parcels of land. During the annexation process, several actions were identified that need City Council action. These actions include approval of a Cooperative Agreement with the County of Orange, approval to submit the annexation application to OC LAFCO, approval of a general plan amendment to redesignate the properties to be consistent with the City's General Plan, an amendment application to rezone the properties to be consistent with the city's Zoning Ordinance, and approval of a Water Service Agreement with the City of Tustin. These actions are discussed in more detail below. Staff is recommending that the City Council approve the following actions needed for the annexation. Cooperative Agreement The annexation process requires the City and County of Orange to enter into a Cooperative Agreement. The Cooperative Agreement will encompass three elements: 1) recognize the property tax transfer that will need to occur once the annexation area becomes part of the City; 2) document the one-time payment of $711,814 from the County to the City for Public Works Agency related improvements and maintenance projects that are needed within the County island boundaries to bring this area into compliance with City standard; and, 3) allows the County to complete the development process for the two projects currently under review by the County that are located within the annexation boundaries. First, the Cooperative Agreement reinforces the transfer of property taxes that will occur once the properties are annexed to the City. For this specific proposal, the City and County will rely on a Master Property Tax Transfer Agreement that governs annexation areas. This document, which was approved by the Board of Supervisors and City Council on October 28, 1980, identifies the allocation of property tax revenues between the jurisdictions. This agreement states that the County will receive 41.4715 percent and the City shall receive 58.5285 percent of the County's share of the one percent basic levy of property tax from the annexation, which is higher than the approximately 18 percent County/City allocation rate. Based on a fiscal analysis prepared by AECOM dated May 15, 2019 for the annexation, it is estimated that the City will receive roughly $92,000 annually in property tax and property tax in lieu of vehicle license fee revenue once the properties are annexed to the City. Second, several public improvement features (i.e. streets, sidewalks, street trees, lighting etc.) within the annexation area were built to County standards, which slightly differ from the City's standards. In order to compensate the City for the cost of converting these features to City standards, the County has agreed to a one-time payment to the City in the amount of $711,814. This will allow the Public Works Agency the ability to make enhancements that will bring the annexation area closer into compliance with City standards. 75C-3 Annexation No. 2018-01 for the County Island Annexation at Seventeenth Street and Tustin Avenue September 3, 2019 Page 4 The Cooperative Agreement will also acknowledge the County's processing of two development projects within the County Island. For the past two years, Chick-Fil-A and In-N-Out Burgers have been processing separate projects with the County, with both projects now ready to enter building plan check. However, both have elected to delay their plan check submittals until the annexation is processed, which will give the developers assurances that their projects will obtain sewer service, which can only be provided once the property is annexed to the City. Approval of this agreement will allow the projects to complete the development process with the County, with both projects reverting to Santa Ana once certificate of occupancies are issued, which is anticipated to occur in approximately 12-18 months. In conjunction with the City's CEQA determination regarding the annexation, the County of Orange is processing a negative declaration (ND) for the two developments. The ND will identify any potential impacts to the environment and identify mitigation measures to reduce or eliminate the impacts. The lead agency for the ND is the County of Orange. General Plan Amendment and Amendment Application Section 41-188 of the Santa Ana Municipal Code (SAMC) allows the City to prezone land that is intended to be annexed to the City. Further, Chapter 27 of the SAMC identifies the process for general plan amendments. In the event the City did not predesignate the annexation area, the SAMC states that these properties would be designated as General Agriculture (A-1). In order to ensure consistency between the zoning and general plan land use designations within the annexation area, and avoid making each property within the annexation nonconforming, staff brought forward a zone change and general plan amendment actions to the Planning Commission. On December 10, 2018, the proposed actions were presented to the Planning Commission for consideration. At this hearing, staff provided background on the proposed actions as well as provided information on the fiscal impact of the proposed annexation. At the conclusion of the meeting, the Planning Commission unanimously recommended that the City Council move forward with the annexation and recommended that the City Council approve the general plan amendment and amendment application. The Commission's approval will establish the future General Plan land use and zoning designations for the properties once the annexation becomes effective. Further, the zoning and general plan amendment actions will be consistent with the existing land uses of the parcels, minimizing the potential for creating non -conforming parcels. Water Service Agreement The City of Tustin currently maintains and operates water lines and facilities that provide potable water service to all developed parcels within the unincorporated island. The City of Santa Ana and the City of Tustin will enter into a water agreement that will allow Tustin to provide water services to the developed and undeveloped parcels located within the unincorporated island upon annexation. Currently, Santa Ana does not have any water infrastructure within the unincorporated island. The agreement will allow Tustin to provide potable water service within the annexation area boundaries until such time Santa Ana installs the infrastructure to provide potable water service. As of this date, it is uncertain when Santa Ana will be able to provide water service to the County island. 75C-4 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 Annexation No. 2018-01 for the County Island Annexation at Seventeenth Street and Tustin Avenue September 3, 2019 Page 6 ENVIRONMENTAL IMPACT In accordance with the California Environmental Quality Act (CEQA), the proposed annexation of an existing County island is exempt from further review per CEQA Guidelines Section 15319 (Annexation of Existing Facilities and Lots for Exempt Facilities). It has been determined that this Class 19 exemption is applicable to the proposed annexation as the project involves the annexation to the City areas containing existing private structures developed to the density allowed by the current zoning and prezoning of both the City and County, and the extension of utility services to the existing facilities have a capacity to serve only the existing facilities. In conjunction with the City's CEQA determination regarding the annexation, the County of Orange completed a negative declaration (ND) for the two developments. The ND identified any potential impacts to the environment as well as mitigation measures needed to reduce or eliminate the impacts. The City has reviewed this document and is in agreement with its findings and conclusions. The lead agency for the ND is the County of Orange. FISCAL IMPACT As part of the annexation efforts, the City hired AECOM to prepare a Fiscal Assessment of the proposed annexation. Based on the final report dated May 15, 2019, the conclusions note that the annexation of the existing land uses will result in a nominal net fiscal surplus to the City of approximately $35,000. Further, the study estimates that the existing land uses with the two proposed restaurant developments at the northeast corner of Seventeenth Street and Tustin Avenue will result in a positive net fiscal impact of $95,000 to $129,000, which will not be realized until the restaurant projects are completed and operational in approximately 18-24 months. The majority of the revenue increase will result from the sales tax generated from the restaurants, which is anticipated to be at least $64,000 per year (Exhibit H). inh Thai �Q T Executive Director Planning and Building Agency VF:Ia &RFCA\201MAnnexation No. 2018-01 K `-- Steven Mendoza Executive Director Community Development Agency Exhibits: 1. Resolution approving Annexation No. 2018-01 2. Cooperative Agreement with the County of Orange 3. Resolution approving a Property Tax Exchange Agreement with County of Orange 4. Resolution approving General Plan Amendment No. 2018-04 5. Ordinance approving Amendment Application No. 2018-07 6. Water Service Agreement with the City of Tustin 7. Ordinance approving the change in Ward 3 boundaries 8. Fiscal Assessment prepared by AECOM 75C-6 LS 9.3.19 RESOLUTION NO. 2019-xx A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA APPROVING ANNEXATION NO. 2018-01, THE DETACHMENT FROM THE MUNICIPAL WATER DISTRICT OF ORANGE COUNTY, AND AUTHORIZING THE SUBMITTAL OF A PROJECT APPLICATION FORM TO THE ORANGE COUNTY LOCAL AGENCY FORMATION COMMISSION FOR A 24.78-ACRE COUNTY ISLAND GENERALLY LOCATED AT THE NORTHEAST CORNER OF SEVENTEENTH STREET AND TUSTIN AVENUE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SANTA ANA AS FOLLOWS: Section 1. The City Council of the City of Santa Ana hereby finds, determines and declares as follows: A. The City of Santa Ana (City) desires to initiate proceedings pursuant to the Cortese -Knox -Hertzberg Local Reorganization Act of 2000, Division 3, commencing with Section 56000 of the Government Code, for the annexation of a 24.78-acre unincorporated area of land that is currently located within the County of Orange. B. The City will file an application with the Orange County Local Agency Formation Commission (OC LAFCO) to annex the unincorporated territory generally located at the northeast corner of Seventeenth Street and Tustin Avenue as shown on Exhibit 1. C. The proposed annexation area is within the City's Sphere of Influence and will be included in the City's General Plan per General Plan Amendment No. 2018-04 containing land use designations of Low Density Residential, Medium Density Residential, and General Commercial. Further, the properties will have zoning designations of Single -Family Residential, Two - Family Residential, and Community Commercial. D. On June 5, 2018, the City Council of the City of Santa Ana held a duly noticed public hearing to consider the annexation of the 24.78-acre County island generally located at the northeast corner of Seventeenth Street and Tustin Avenue. At this hearing, the Council directed staff to initiate the process to annex the County island and continue discussions with the County and the LAFCO regarding the annexation. EXHIBIT 1 Resolution No. 2019-xx Page 1 of 6 75C-7 E. On September 14, 2018, the City, County of Orange, and the Orange County Local Agency Formation Commission held a duly noticed community workshop regarding the proposed annexation to obtain community input. Major questions of the citizens in attendance included how the annexation will affect properties, the delivery of services, and options to annexation. LAFCO and City staff addressed key questions about the annexation process and the impact of delivery of municipal services. Public notices were mailed to property owners and tenants within the annexation area in October and December 2018 notifying them of the actions to be taken by the Planning Commission regarding the pre -zoning and pre-dogignation of the properties within the annexation area. On December10, 2018, the Planning Commission held a duly noticed public hearing and voted to recommend that the City Council adopt a resolution approving General Plan Amendment No. 2018-04 and Amendment Application No. 2018-07, G. On September 3, 2019, the City Council of the City of Santa Ana held a duly noticed public hearing to consider all testimony, written and oral, related to Annexation No. 2018-01 for the Seventeenth and Tustin annexation project, at which time all persons wishing to testify were heard, the project was fully considered, and all other legal prerequisites to the adoption of this Resolution occurred. H. Pursuant to the California Environmental Quality Act (Pub. Res. Code sec. 21000 et seq.; "CEQA"), and the State CEQA Guidelines, the City has determined that a Categorical Exemption will be filed for the proposed project. As a reviewing agency, the City has reviewed the negative declaration that has been prepared by the County of Orange for the proposed commercial developments on the subject site. Based on its review, the City concurs with the findings of the negative declaration. I. The annexation proposal is made pursuant to the Cortese -Knox -Hertzberg Local Government Reorganization Act of 2000, Division 3, commencing with Section 56000 of the Government Code of the State of California. J. The reason for the proposed annexation is to provide full municipal services to unincorporated areas that are remote from County service facilities and thereby increase the economy and efficiency of public services. K. The City Council has weighed and balanced the annexation proposal and has determined that based upon this balancing that Annexation No. 2018-01 is consistent with the purpose of the General Plan and the City's Strategic Plan. Resolution No. 2019-xx Page 2 of 6 75C-8 L. The City Council hereby authorizes staff to submit the required Project Application Form and all necessary documents to OC LAFCO to initiate the annexation process with that agency as shown on Exhibit 2. Section 2. CEQA Compliance. In accordance with the California Environmental Quality Act (CEQA) and the State CEQA Guidelines, a categorical exemption will be filed for this project pursuant to section 15319. This Class 19 exemption applies to projects involving annexation of existing facilities and lots for exempt facilities such as public and private structures developed to the density allowed by the pre -zoning of the City. The proposed annexation area is developed to the density allowed by the current zoning or pre -zoning, with the extension of utility services having the capacity to serve only the existing facilities. More specifically, the proposed annexation will consist of the 24.78-acre parcels of land in its entirety that includes private residential and commercial structures as well as three vacant parcels of land that are located at the southwest section of the annexation area. As the annexation area is developed to the density allowed by both the current zoning of the County and the pre -zoning designations proposed by the City, and no new utility services are proposed for the existing structures within the annexation area as part of this project, the Class-19 exemption is applicable to this project. The City Council has, as a result of its consideration and the evidence presented at the hearings on this matter, determined that, as required pursuant to CEQA, a categorical exemption adequately addresses the expected environmental impacts of this project. On the basis of this review, the City Council finds that there is no evidence from which it can be fairly argued that the project will have a significant adverse effect on the environment therefore, it is categorically exempt from the requirement for the preparation of environmental documents. Based on this analysis, a Notice of Exemption for Environmental Review No. 2018-89 will be filed for this project. Section 3. Approvals. The City Council of the City of Santa Ana after conducting the public hearing hereby approves Annexation No. 2018-01 as shown on Exhibit 1 and incorporated herein by this reference as though fully set forth herein. This decision is based upon the evidence submitted at the above said hearing, which includes, but is not limited to: the Request for Council Action dated September 3, 2019 and exhibits attached thereto; and the public testimony, written and oral, all of which are incorporated herein by this reference. Section 4. This Resolution shall not be effective unless and until all related ordinances Nos. NS- (AA No. 2018-07 and change in ward boundaries) become effective, If said ordinances are for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, or otherwise does not go into effect for any reason, then this resolution shall be null and void and have no further force and effect. Section 5. This Resolution shall not be effective unless and until the Orange County Local Agency Formation Commission (LAFCO) passes a resolution adopting the annexation of the County island. If the resolution is for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, or otherwise does Resolution No. 2019-xx Page 3 of 6 75C-9 not go into effect for any reason, then this Resolution shall be null and void and have no further force and effect. ADOPTED this _ day of 2019. Miguel A. Pulido Mayor APPROVED AS TO FORM: Sonia R. Carvalho, City Attorney Lisa Storck Assistant City Attorney AYES: Councilmembers NOES: Councilmembers ABSTAIN: Councilmembers NOT PRESENT: Councilmembers CERTIFICATE OF ATTESTATION AND ORIGINALITY I, DAISY GOMEZ, Clerk of the Council, do hereby attest to and certify the attached Resolution No. 2019-xx to be the original resolution adopted by the City Council of the City of Santa Ana on 2019. Date: Resolution No. 2019-xx Page 4 of 6 Clerk of the Council City of Santa Ana 75C-10 Exhibit 1: Map of Annexation Area Resolution No. 2019-xx Page 5 of 6 75C-11 F ppp Santa Ana Li A J7 V - Yv Tustin EXI?SC-12 Resolution No. 2019-xx Page 6 of 6 Exhibit 2: LAFCO Project Application Form 75C-13 ORANGE COUNTY LAFCO Project Application Form Page I of 9 PROJECT - . APPLICATION w FORM OF THE cowAmw�. COMMISSION Orange County Local Agency Formation Commission 2677 North Main Street, Suite 1050 Santa Ana, CA 92705 ` (714)640-5100 (714) 640-6139 (FAX) This application form is used to initiate the application process to the Orange County Local Agency Formation Commission (LAFCO) for a city or district annexation, reorganization, detachment, or a sphere of influence amendment. LAFCO staff looks forward to assisting you with your project. In addition to the information that you will provide us on this form, LAFCO staff is required to analyze additional data regarding your proposal from our Geographic Information System (GIS) and in-house data base, including, but not limited to: affected agencies, interested agencies, spheres of influence, school districts, land uselzoning, acres of prime agricultural land, and number of dwelling units. A Plan of Services may also be required demonstrating how municipal services will be provided to the affected territory. Please fill out this application as completely as possible. If you need assistance, please do not hesitate to contact a LAFCO staff member for guidance. If a question does not apply to your proposal, indicate "N/A". Orange County LAFCO is a "paperless" office. It is important that you list all email addresses where indicated on the application. Correspondence, staff reports, resolutions and other LAFCO forms and mailings, whenever possible, will be distributed electronically. EXHIBIT 2 (The information contained in this application ma.y be mdVeet to diselrerure under the California Public Retards Act Government Code Section 6250 et seq.) 75C-14 ORANGE COUNTY LAFCO ProjeaiApplication Foruc Page 2 of 9 APPLICATION FOR: (check all that apply) ❑ Annexation to: CITY OF SANTA ANA ❑ Detachment from: Municipal Water District of Oranae County ❑ Reorganization (2 or more changes of organization) of: ❑ Other (explain): ❑ *Sphere of Influence Amendment for: *If requesting a sphere of influence amendment "only",please answer the following two questions: 1. Why is a sphere of influence amendment needed? 2. How would a sphere of influence affect the present and future need for services in the project area? 1. What changes of organization are included? What agencies are Involved? The City of Santa Ana is requesting that the Orange County Local Agency Formation Commission (LAFCO) approve the annexation of a 24.78-acre County island from the County of Orange to tthe City of Santa Ana and detachment of the sub act territory from the Municipal Water District of Orange. Other approvals include a Property �ax Exchange Agreement, Annexation Agreement between the City and County of Orange, and cooperative agreement, water agreement. 2. Explain the purpose of each request of change of organization. In June 2018, the Santa Ana City Council directed staff to work with the County of Orangge and LAFCO on the annexation of the 24.78-acre County island due to its location within the Ry's sphere of influence. Further, the City expressed an interest in the development of the vacant pparcels of land at the northeast corner of Seventeenth Street and Tustin Avenue, which cannot be developed until the City provides sewer service to the parcels. Currently the water provider is the City of Tustin a member of the Municipal Water District of Orange County (MW DOC). The City of Santa Ana is an original member agency of Metropolitan Water District of Southern California (Metropolitan); therefore, the Seventeenth and Tustin Island will be detached from MWDOC and become a part of Metropolitan. (The h Jnonation conlabned in This application may be subject to disclosure under the Cabfbnda Public Recods Act Government Corte Section 6250 et seq.) 75C-15 ORANGE COUNTY LAFCO Project Application Jon Page 3 of 9 3. Explain how the proposal provides more logical boundaries and/or improves the provision of service. The County island is surrounded on three sides by the City of Santa Ana and on the fourth by the Newport -Costa Mesa (SR-55) Freeway, is within the City's sphere of influence, and is the last County Island surroundina Santa Ana. Annexation from the County to the City will allow the City to provide local services to the properties within the County island. An Out of Area water agreement will be completed with the City of Tustin to allow Tustin to continue to provide water service to the area. 4. Does this proposal have 100%consent of all property owners? (If so, please complete Attachment 1.) No. The City has experienced opposition from approximately 15-20 residents at a community meeting held in September 2018 from 3-5 residents at hearings held by the Planning Commission in October and December 2018. WHO INITIATED THIS PROPOSAL? Generally, LAFCO proposals maybe initiated by a resolution of an affected agency, a city council, special district or by the Board of Supervisors. In addition, a proposal may be initiated by a petition of the affected area's registered voters or landowners. Attach one of the following to this application form: ❑ Agency Resolution ❑ Landowner Petition ❑ Registered Voter Petition The pproperties are located at the followingg addresses: 13862 to 13972 North Tustin Avenue, 13862-13922 North Ponderosa Street, 2301 and 17221 East Seventeenth Street, 13741-13971 North Deodar Street, 17152-17182 East Medford Street, and 13751-13841 North Pasadena Street. MAP AND LEGAL DESCRIPTION: A map and legal description of the proposal, even if prepared by a private engineering firm, must be submitted directly to the Orange County Surveyor for review and final approval. An application can be filed with LAFCO without a map and legal, but a proposal cannot be scheduled for LAFCO hearing prior to receipt of a County Surveyor -approved map and legal description. You may contact the County Surveyor at the Resources and Development Management Department, Geomatics/Land Information Systems Division, at (714) 834-4378. Additionally, the map and legal description must meet the State Board of Equalization's requirements. The BOE's "Change of Jurisdictional Boundary" requirements are available for download at htto://www.boe.ca.goy/oroptaxes/sprdcont.htm. Please note, the BOErequires an additional vicinity map that shows the project area in relation to a larger geographic area. (The information contained in this application may be subJett la disclosure under the Gel jornia Public Records Act Government Code Section 62M el sect j 75C-16 ORANGE COUNTY LAFCO Project Application Form Page 4 of 9 A map and legal description has been: ❑ Certified by the County Surveyor and is attached to this application. ❑ Submitted for review to the County Surveyor. ❑ Other (please explain) N/A. The City is processing a small island annexation request. Orange County LAFCO requires applicants to report all expenditures for political purposes related to an application and proceedings to be reported to the Commission's Executive Officer in compliance with Government Code Sections 56700.1 and 57009. The following is attached to this application form: ❑ LAFCO Disclosure Form (please complete LAFCO Disclosure of Political Expenditures, Attachment 3); copy of Financial reports and disclosures submitted to FPPC (please attach) ❑ Please check here if you have no related financial reports or disclosures. LAFCO policy requires that all applicants sign an indemnification agreement (see Attachment 2) which indemnifies LAFCO employees, agents and attorneys in the event of litigation is filed concerning the approval of an application. The following is included with this application form: ❑ Signed Indemnification Agreement FILING FEES: Applicants are required to pay fees in accordance with OC LAFCO's adopted fee schedule (see Attachment 4) to cover the administrative and staff costs required to evaluate proposals for hearing. Checks must be made payable to: "Orange County LAFCO': The following is included with this application form: ❑ Check for Filing Fees ❑ Other (explain why Filing Fees not included): As the County island is less than 150 acres in size, the OC LAFCO Commission will waive the application fees. ('rha w1brmation contained !n this application may be subject to diselosurc under lte California Public Records Act GovernownI Corse Section 6250 et seq.) ._ 75C-17 ORANGE COUNTY LAFCO Project Application Fornt Page 5 of 9 1 certify, under penalty of perjury by the laws of the State of California, that the Information contained in this application is true and correct. I acknowledge and agree that the Orange County Local Agency Formation Commission is relying on the accuracy of the information provided and my representations in order to process this application proposal. Signature: Name: Title: Date: (The it formation contained in this applicatioa may ba.mbjeci to disclosure under the California Public Records Act Govenonent Cade Section 6250 et seq.) — 75C-18 ORANGE COUNTY LAFCO Project Application Porut Page 6 q/'9 Property Owner Consent Form (All legal owners must sign a consent form or submit a letter of signed consent.) I, , consent to the annexation/reorganization of my property located at (or Assessor Parcel Numbers ) to the [agency(ies)]. Signature: Date: Address: City, State, Zip: (7he iglbnnadon contained in this application may be subject to disclosure ander the California Public Records Act Governmew Code Section 6250 et seq) 75C-19 ORANGE COUNTY LAFCO ProJectApplication Forst Page 7 of 9 indemnification Agreement As part of this application, applicant and real party in interest, if different, agree to defend, indemnify, hold harmless, and lease the Orange County Local Agency Formation Commission, its agents, officers, attorneys, and employees from any claim, action, or proceeding brought against any of them, the purpose of which is to attack, set aside, void, or annul the approval of this application or adoption of the environmental document which accompanies it. This indemnification obligation shall include, but not be limited to, damages, costs, expenses, attorney fees, or expert witness fees that may be asserted by any person or entity, including the applicant, arising out of or in connection with the approval of this application, whether or not there is concurrent passive or active negligence on the part of the Orange County Local Agency Formation Commission, its agents, officers, attorneys, or employees. Executed at , California on the day of_, 2_ APPLICANT 0 Title: Mailing Address: REAL PARTY IN INTEREST (if different from Applicant) 0 Title: Mailing Address: (The it frrnmlion conlained in this application mm+be .subject to disclosure taider the Calij6nfia Public Records Act Govenonclo Code Section d?SO er seq.) 75C-20 ORANGE COUNTY LAFCO Project Application Forin Page 8 of 9 AIMP- MENT 3 LAFCO Disclosure of Political Expenditures Effective January 1, 2008, political expenditures related to a proposal for a change of organization or reorganization that will be or has been submitted to LAFCO are subject to the reporting and disclosure requirements of the Political Reform Act of 1974 and the Cortese -Knox -Hertzberg Act of 2000. Please carefully read tke jollmvinx htfi�ritiatlaii to detennlne if reporting and disclosure provisions apply to yoft. E4 Any person or combination of persons who, for political purposes, directly or indirectly contributes $1,000 or more, or expends $1,000 or more in support of, or in opposition to a proposal for a change of organization or reorganization that will be submitted to the Commission, shall disclose and report the contribution to the Commission pursuant to the requirements of the Political Reform Act of 1974 (Government Code Section 81000 et seq.) as provided for local initiative measures, and Section 56700.1 of the Cortese -Knox -Hertzberg Act of 2000. 2; Pursuant to Government Code Section 57009, any person or combination of persons who directly or indirectly contributes $1,000 or more, or expends $1,000 or more in support of, or in opposition to, the conducting authority proceedings for a change of organization or reorganization, must comply with the disclosure requirements of the Political Reform Act of 1974, (Government Code section 81000 et seq.). Applicable reports must be filedwith the Secretary of the State and the appropriate city or county clerk. Copies of the report must also be filed with the Orange County Executive Officer, Evaluation Checklist for Disclosure of Political Expenditures The following checklist is provided to assist you in determining if the requirements of Government Code Sections 81000 et seq. apply to you. For further assistance, contact the Fair Political Practices Commission at 428 J Street, Suite 450, Sacramento, CA 95814, (866) 275-3772 or at http://wwuv.f 1. Have you directly or indirectly made a contribution or expenditure of $1,000 or more related to the support or opposition of a proposal that has been or will be submitted to LAFCO? ❑ Yes ❑ No Date of contribution Amount$ Name/Rct.NooPLAFCOProposal Date proposal was submitted to LAFCO 2. Have you, in combination with other persoa(s), directly or indirectly contributed or expended $1,000 or more related to the support or opposition of a proposal that has been or will be submitted to LAFCO? ❑ Yes ❑ No Date of contribution Amount $__Name/ Ref. No of LAFC0 Proposal Date proposal was submitted to LAFCO 3. If you filed a report in accordance with FPPC requirements, has a copy of the report been filed with Orange County LAFCO? ❑ Yes ❑ No (TIte it fonnafion container/ Lt Otis applica/ion may be svrbfect to disc(ostwe ender the Cnlrfgrnia Public. Records'4a Covernntew Code Section 6250 et sey.) _ 75C-21 ORANGE COUNTY LAFCO ProjectApplicalion Forin Page 9 of 9 F-111-TWHI17571 ORANGE COUNTY LOCAL AGENCY FORMATION COMMISSION SCHEDULE OF FILING AND PROCESSING FEES Effective 7/1/2018 FEE SCHEDULE OVERVIEW In accordance with Government Code Section 56383, the Commission may establish a schedule of fees and a schedule of service charges for Local Agency Formation Commission (LAFCO) proceedings. The submission of an application to the Orange County (LAFCO) is not officially accepted for processing until the filing fee deposits have been received by the agency. The fees associated with an application or petition are calculated on a time and materials schedule as detailed in the Fee Schedule. PROVISIONS Additional Deposits: a. The Executive Officer may require an additional deposit from applicants to cover actual costs for review and processing of any application if the Executive Officer determines the project is extraordinary in scope. For example, the Executive Officer may determine that the processing of the proposal will require advice and counsel from LAFCO's General Counsel beyond routine review of the Executive Officer's report, Commission resolutions, and agenda materials. Further, LAFCO reserves the right to require reimbursement for additional expenses not listed in the fee schedule but incurred as a result of processing an application. b. If the actual charges exceed the amount of the deposit, the applicant or petitioner shall be notified and shall pay the excess within 15 days of receipt of a statement from LAFCO. Failure to pay may be cause for delay and/or denial of the application/petition, and no proceeding or application shall be completed until all fees due have been paid in full. 2. Indemnification Agreement Requirement As a condition of approval of any change of organization or reorganization, out -of - agency service agreement, sphere of influence or municipal service review by LAFCO, the applicant(s) and real party(ies) in interest are required to defend, indenmify, hold harmless, and release LAFCO and its agents, officers, attorneys, and employees from any claim, action, or proceeding against LAFCO, and its agents, officers, attorneys, and employees to attack, set aside, void, or annul the approval of LAFCO concerning the proposal or any action relating to, or arising out of, such approval. In accordance with the Commission's Policy for Indemnification of LAFCO by Applicants (adopted March 8, 2000), the applicant(s) and real party (ies) in interest are required to submit a signed indemnification agreement as part of the application. (The infnnration contained br this application may be subject to disclosure under the Cad foram Public Records Act GovernnvenI Carle Section 6250 et set.) 75C-22 COOPERATIVE AGREEMENT BETWEEN THE CITY OF SANTA ANA AND THE COUNTY OF ORANGE FOR THE REORGANIZATION OF THE 17TH AND TUSTIN UNINCORPORATED ISLAND TO THE CITY OF SANTA ANA AND MUNICIPAL WATER DISTRICT OF ORANGE COUNTY (RO19-07) THIS COOPERATIVE AGREEMENT ("Agreement"), dated September 3, 2019, between the CITY OF SANTA ANA ("CITY"), a charter city and municipal corporation organized and existing under the Constitution and laws of the State of California, and the COUNTY OF ORANGE ("COUNTY"), a political subdivision of the State of California, (collectively referred to as the "PARTIES" herein) is based on the following: RECITALS A. The City is in the process of annexing an unincorporated County island consisting of approximately 25 acres and referred to as the 17th and Tustin Unincorporated Island ("Annexation Area") and detachment of the Annexation Area from the Municipal Water District of Orange County. The Annexation Area is described in Exhibit 1 and depicted in Exhibit 2. B. The Annexation Area more specifically includes 57 parcels in the COUNTY bearing Assessor's Parcel Numbers ("APNs") 396-303-01 to 396-303-28, 396-304-01 to 396-304-11, 396-312-13 to 396-312-15, 396-313-01 to 396-313-03, 396.313-06 to 396- 313-11, and 396-314-01 to 396-314-06, as depicted on Exhibit 3. C. Among the individual parcels in the Annexation Area, the John C. Hall Trust UAD is the fee title holder of three parcels with APN Nos. 396-312-13 to 396-312-15, which parcels are currently under COUNTY review, application number PA160055, for discretionary permits for development. There may be additional ministerial permit applications to be submitted to the County, and County shall continue to retain all planning, building, safety, and Inspection authority until the point of occupancy (collectively the discretionary and ministerial permits are the "Development Project'). Page 1 of 9 75C-23 D. The CITY and COUNTY are public entities possessing the common power to conduct and evaluate applications for discretionary and ministerial permits for development, including, but not limited to, subdivision maps, conditional use permits, grading permits and building permits, and approvals related to the implementation, planning, and development of real property ("Development Approvals"), E. The CITY intends, by way of this Agreement and pursuant to California Government Code section 51300 at seq. to contract with the COUNTY for the performance of all Development Approvals for the Development Project. Subject to this Agreement, and as limited to the Development Project alone, the COUNTY will assume the authority for the Development Approvals. F. In the event of a "jurisdictional change" as defined in California Revenue and Taxation Code section 99, prior to the effective date of any jurisdictional change, the affected agencies of such change shall negotiate the amount of property tax revenues to be exchanged. G. The Parties have met and negotiated both a property tax exchange and other consideration, all of which is conditional upon the CITY'S annexation of the Annexation Area becoming final and effective. AGREEMENT NOW, THEREFORE, based on the foregoing and in consideration of the Parties' mutual agreements and promises hereinafter set forth, the sufficiency of which is hereby acknowledged, the Parties agree as follows: 1. CITY'S ANNEXATION APPLICATION Within 90 days of the execution of this Agreement, the CITY will file an application for and diligently pursue annexation of the Annexation Area with the Orange County Local Agency Formation Commission (OCLAFCO). Page 2 of 9 75C-24 2. PROPERTY TAX EXCHANGE Upon annexation of the Annexation Area and assumption of services by the CITY becoming final and complete, the COUNTY and CITY agree to an exchange of property taxes generated within the Annexation Area as follows: a. The COUNTY shall receive 41.4715 percent and the CITY shall receive 58.5285 percent of the COUNTY's share of the 1 percent basic levy of property tax from the annexation, with the re -allocation taking effect after OCLAFCO approval of the annexation. These proportional shares shall remain as the allocation of tax revenues between the CITY and the COUNTY for the annexations for all future years unless the CITY and COUNTY agree by written Resolution to adjust the allocation proportions. b. The CITY shall receive a one-time compensation of $711,814 to construct betterments In the Annexation Area, including Street Improvements ($397,314), Storm Drain Improvements ($187,500), and General Construction Costs ($127,000). C. As the CITY contracts with the Orange County Fire Authority, the Structural Fire Fund shall remain unchanged. For the Development Project alone, the CITY hereby conveys to the COUNTY authority and responsibility for the Development Approvals, as defined above and pursuant to Government Code section 51300, et seq. County shall have such authority and responsibility for the Development Project through issuance of the Certificates of Occupancy. The County shall exercise the Development Approvals in substantial compliance with: (1) conditions imposed by any State or local agency; and (11) legally enforceable restrictions and limitations on development of the Property. 4. DISSOLUTION OF ANNEXATION AREA Except with respect to matters addressed in Sections 5 and 6 herein, the COUNTY shall dissolve the Annexation Area, with the CITY to assume the services for the area, and the CITY to receive a transfer of the one-time compensation amount specified in paragraph 2.b herein at the time of dissolution. Page 3 of 9 75C-25 5. OPEN CODE ENFORCEMENT CASES The COUNTY commits to making its best effort to close open code enforcement and building safety/planning cases prior to the date of annexation, with the understanding that CITY agrees that COUNTY shall be entitled to charge, receive and retain all code enforcement fine amounts, which shall be the COUNTY's sole consideration for all services performed in closing the open cases. For code enforcement cases that still remain open on the date of annexation, the COUNTY will administer the cases to completion, using COUNTY ordinances and code enforcement procedures. 6. PERMITS AND PLAN CHECKS CITY agrees that COUNTY shall be entitled to charge, receive and retain all customary fees for the Development Project through issuance of the Certificates of Occupancy, including planning application, building permit fees, grading fees, and inspection fees. The fees shall be the COUNTY's sole consideration for all services performed in closing the Development Project. 7. ANNEXATION FEES CITY shall request that OCLAFCO allow the annexation to be processed under the "Small Island Annexation Program' so that OCLAFCO fees and map and legal fees are waived for the CITY. COUNTY and CITY agree to execute, in recordable form, such documents as may be required to complete the annexation. In addition, if any transfer of ownership of real property that would not automatically result from the annexation is necessary to carry out the objectives of this Agreement, the COUNTY will execute, in recordable form, such deeds or other documents as may be required to accomplish those objectives. Page 4 of 9 75C-26 9. TERM OF AGREEMENT This Agreement shall commence upon the execution of all necessary signatures, and except for the authority granted to COUNTY for the Development Approvals, this Agreement shall continue in full force and effect with respect to the Property until annexation of the Property by the City has been completed to the satisfaction of both parties. 10. ENTIRE AGREEMENT This Agreement sets forth and contains the entire understanding and agreement of the Parties, and all oral or written representations, understandings or agreements are expressly stated in this Agreement. No testimony or evidence of any such representations, understandings, or covenants shall be admissible in any proceeding or any kind or nature to interpret or determine the terms or conditions of this Agreement. 11. SEVERABILITY If any term, provision, covenant, or condition of this Agreement is ruled invalid, void, or unenforceable by a court of competent jurisdiction, this Agreement shall nonetheless remain in full force and effect as to all remaining terms, provisions, covenants, and conditions. • r s This Agreement and any related dispute shall be governed and interpreted in accordance with the laws of the State of California. This Agreement shall be construed according to its plain language and fair and common meaning to achieve the objectives and purposes of the Parties. 13. INDEMNIFICATION Each party agrees to indemnify, defend with counsel approved in writing by the other party, and hold the other party, and their officials, officers, employees and agents free and harmless from any claim, loss, damage, or injury to property or persons, including wrongful death, in any manner arising out of or incident to any negligent act, omission or willful misconduct of the agreeing party, their respective officers, employees Page 5 of 9 75C-27 or agents, arising out of or in connection with the execution or performance of this Agreement, including without limitation the payment of attorney fees. 14. SECTION HEADINGS All section headings and subheadings are inserted for convenience only and shall not affect any construction or interpretation of this Agreement. 15. WAIVER The failure of a Party to insist upon the strict performance of any of the provisions of this Agreement by the other Party, or the failure of a Party to exercise its rights upon the default of the other Party, shall not constitute a waiver of that Party's right to demand and require, at any time, the other Party's strict compliance with the terms of this Agreement 16, NO THIRD PARTY BENEFICIARIES The Parties expressly acknowledge and agree that they do not intend, by their execution of this Agreement, to benefit any person or entities not signatory to this Agreement. No person or entity not a signatory to this Agreement will have any rights or causes of action against the CITY or COUNTY, or any combination thereof, arising out of or due to CITY'S or COUNTY'S entry into this Agreement. 17. SUCCESSORS IN INTEREST The burdens of this Agreement shall be binding upon, and the benefits of this Agreement shall inure to, all successors in interest to the Parties to this Agreement. 18. COUNTERPARTS This Agreement may be executed by the parties and counterparts, which counterparts shall be construed together and have the same effect as if all the parties had executed the same instrument. Page 6 of 9 75C-28 19. JURISDICTION AND VENUE Any action at law or in equity arising under this Agreement or brought by any Partyforthe purpose of enforcing, construing, ordetermining the validityof any provision of this Agreement shall be filed and tried in the Superior Court of the County of Orange, State of California. The Parties waive all provisions of law providing for the filing, removal or change or venue to any other court. 20. FURTHER ACTIONS AND INSTRUMENTS Each of the parties shall cooperate with and provide reasonable assistance to the other to the extent contemplated by this Agreement to achieve the objectives of this Agreement. Upon the request of either party at any time, the other party shall promptly execute, with acknowledgment or affidavit if reasonably required, and file or record instruments and writing. The Parties shall also take any action that may be reasonably necessary under the terms of this Agreement to carry out the intent and to achieve the objectives of this Agreement 21. AMENDMENTS This Agreement may be amended only by written consent of the parties specifically approving the amendment. The Parties shall cooperate in good faith with respect to any amendment proposed in order to clarify that intent and application of this Agreement. 22. AUTHORITY TO EXECUTE Any person or persons executing this Agreement on behalf of the City and County warrants and represents that he or she has the authority to execute this Agreement on behalf of his or her agency and to bind that Agency to the performance of its obligations pursuant to this Agreement. 23. NOTICE All notices, demands, requests or approvals to be given under this Agreement shall be given in writing and shall be deemed served when delivered personally or on Page 7 of 9 75C-29 the third business day after deposit in the United States mail, postage prepaid, first class mail, addressed as follows. All notices, demands, requests or approvals to CITY shall be addressed to: City of Santa Ana 20 Civic Center Plaza Santa Ana, CA 90702 Attn: Clerk of the Council All notices, demands, requests or approvals to COUNTY shall be addressed to: Robin Stieler, Clerk of the Board County of Orange 333 W. Santa Ana Blvd Santa Ana, CA 92701 IN WITNESS WHEREOF, the Parties hereto have executed this Agreement on the dates set forth below: CITY OF SANTA ANA M Date: ATTEST: APPROVED AS TO FORM Sonia R. Carvalho, City Attorney By: By: City Clerk J n M. Funk Assistant City Attorney Page S of 9 75C-30 COUNTY OF ORANGE 0 LISA A. BARTLETT Chairwoman of the Board of Supervisors County of Orange, California Date: SIGNED AND CERTIFIED THAT A COPY OF THIS AGREEMENT HAS BEEN DELIVERED TO THE CHAIR OF THE BOARD PER G.C. SEC. 25103, RESO 79-1535 ATTEST: Robin Stieler Clerk of the Board Orange County, California APPROVED AS TO FORM OFFICE OF THE COUNTY COUNSEL ORANGE COUNTY, CALIFORNIA an Date: Page 9 of 9 75C-31 COOPERATIVE AGREEMENT BETWEEN THE CITY OF SANTA ANA AND THE COUNTY OF ORANGE FOR THE REORGANIZATION OF THE 17TH AND TUSTIN UNINCORPORATED ISLAND TO THE CITY OF SANTA ANA The 171h and Tustin Island annexation area is described as approximately 25 acres of unincorporated territory generally located near where the SR-55 Costa Mesa Freeway intersects 17th street, lying to the north of 17th Street, to the east of Tustin Avenue, to the south of Catalina Avenue, and west of SR-55 Costa Mesa Freeway. Included in the annexation is unincorporated public right of way as follows: • 17th Street from Tustin Avenue to SR-55 Costa Mesa Freeway Tustin Avenue from 17th Street to the north line produced of APN 396-312-15 Ponderosa Street from 17th Street to the north line produced of APN 396-303-12 • Deodar Street from 17th Street to the north line produced of APN 396-303-12 • Medford Street from Deodar Street to Pasadena Street • Pasadena Street from Medford Street to the north end of the cul-de-sac The above described annexation area is depicted in Exhibit 2. The area includes the private property parcels with Assessor's Parcel Numbers ("APNs') as shown in Exhibit 3. EXHIBIT 1 75C-32 d a i i i 1' f i e 1 � III EXHIBIT 2 CITY OF SANTA ANA 17TH STREET ISLAND - VICIHITI MAP 396-312-14 396-3t2-13 LEGEND ORANGE CO ��'"`°'� SANTA ANA TUSTIN OC PARCELS ry f= r rA� a,� 396-312-15 ` { Z �L 1 i 396-303-13 396-303-28 396-304JOt 396-303-12 396-303-74 . 396-303-27 396-3041i02 396-303-11 396-303-15 396-303-26 396-304,03 .396-303-16 396-303-25 396-303-10 < 396-304 I'04 396-303-09 396-303-t7 396-303-24 396-30a�05 F, 396-303-08 J 396-303-18 396-303-23 396-304'06 r 396-303-07 c 396-303-19 396-303-22 396-304i07 396-303-20 396-303-27 396-303-06 396-304 FOB 396-303-05 1"J'EDnflIFID Ay 396-304-09` 396-304-70 416 396-304-11 J\ 396-313-01 396-313-10 396-314-01 \� 396-313-02 396-313-09 396-314-02 396-313-03 U ' ii nL✓: J 396-313-1 1.;, 177i H :"T 396-313-OB 396-314-03 396-3t4-04 EXHIBIT 3 ASSESSOR'S PARCEL NUMBER MAP 396-314-06 f LS 9.3.19 RESOLUTION NO, 2019-xx A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA APPROVING A PROPERTY TAX EXCHANGE AGREEMENT WITH THE COUNTY OF ORANGE FOR THE 24.78-ACRE COUNTY ISLAND GENERALLY LOCATED AT THE NORTHEAST CORNER OF SEVENTEENTH STREET AND TUSTIN AVENUE TO BE DETACHED FROM THE COUNTY OF ORANGE AND ANNEXED TO THE CITY OF SANTA ANA BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SANTA ANA AS FOLLOWS: Section 1. The City Council of the City of Santa Ana hereby finds, determines and declares as follows: A. The Cortese -Knox Act regulates the change in organization of real property in the State of California, including the detachment of property from a public agency and its annexation to another. The Orange County Local Agency Formation Commission (LAFCO) is authorized to Implement the Cortese - Knox Act. B. A request is in the process of being submitted to LAFCO to attach 24.78- acres of property to the City of Santa Ana on Seventeenth Street and Tustin Avenue. A map showing this property is attached hereto as Exhibit 1 and incorporated herein by this reference. The property is to be used, together with other property, in Santa Ana for residential and commercial uses. In addition, a vacant section of the annexation area is proposed to be developed as a Chic-Fil-A and in-N-Out Burger restaurants. C. Pursuant to the Cortese -Knox Act, and California Revenue and Taxation Code Section 99 et. seq., LAFCO has determined that the County gained $15,557 in property tax revenue in 2014-2015. D. After the annexation, the City of Santa Ana will be providing public services to these properties, with the exception of water service. Based on a 1980 City/County revenue agreement, the County shall receive 41.4715 percent and the City shall receive 58.5285 percent of the County's share of the 1 percent basic levy of property tax from the annexation. Section 2. The City of Santa Ana hereby accepts the attachment of the 24.78- acres of property on Seventeenth Street and Tustin Avenue as shown on Exhibit 1 and its annexation to the City of Santa Ana. EXHIBIT 3 Resolution No. 2019-xx Page 1 of 3 75C-35 Section 3. The City of Santa Ana hereby accepts the Fiscal Assessment prepared by AECOM dated May 15, 2019, and agrees to a property tax exchange with the County of Orange, with the re -allocation taking effect after final LAFCO approval of the annexation and the formal attachment and annexation of the property. Section 4. This resolution shall take effect immediately upon its adoption by the City Council, and the Clerk of the Council shall attest to and certify the vote adopting this resolution. The Clerk shall cause a certified copy of this resolution to be forwarded to LAFCO and the Auditor Controller of the County of Orange. ADOPTED this 3rd day of September, 2019. APPROVED AS TO FORM: Sonia R. Carvalho City Attorney By: '(I�' � . 1"J' Lisa Storck Assistant City Attorney AYES: Councilmembers NOES: Councilmembers ABSTAIN: Councilmembers NOT PRESENT: Councilmembers Miguel A. Pulido Mayor Resolution No. 2019-xx Page 2 of 3 75C-36 CERTIFICATE OF ATTESTATION AND ORIGINALITY I, DAISY GOMEZ, Clerk of the Council, do hereby attest to and certify the attached Resolution No. 2019- to be the original resolution adopted by the City Council of the City of Santa Ana on 2019. Date: Daisy Gomez Clerk of the Council City of Santa Ana Resolution No. 2019-xx Page 3 of 3 75C-37 L R Y t'- Alc,Mud 51 � •.. `ll► Y _ ]id- TLlstllt ,. 1 { l IN1 o m I c a — City of Santa Ana a y _ � 17th Street Island - Vicinity Ma i� t I E'er:-'38 LS 9.3.19 RESOLUTION NO. 2019-xx A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA APPROVING GENERAL PLAN AMENDMENT NO. 2018-04 FOR THE PROPOSED ANNEXATION OF A COUNTY ISLAND GENERALLY LOCATED AT THE NORTHEAST CORNER OF SEVENTEENTH STREET AND TUSTIN AVENUE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SANTA ANA AS FOLLOWS: Section 1. The City Council of the City of Santa Ana hereby finds, determines and declares as follows: A. The City of Santa Ana (City) is requesting approval of General Plan Amendment No. 2018-04 to incorporate into the City's various General Plan elements a 24.78-acre unincorporated area of land that is currently located within the County of Orange. B. Over the past several months, the County has been working with the developer of a proposed project at the northeast corner of Seventeenth Street and Tustin Avenue. This development has been unable to move forward due to the inability to connect to the City's sewer system as they are currently located outside the City boundaries. C. On June 5, 2018, the City Council of the City of Santa Ana held a duly noticed public hearing to consider the annexation of the 24.78-acre County island generally located at the northeast corner of Seventeenth Street and Tustin Avenue. At this hearing, the Council directed staff to initiate the process to annex the County island and continue discussions with the County and the Orange County Local Agency Formation Commission (LAFCO) regarding the annexation. D. On September 14, 2018, the City, County of Orange, and the Orange County Local Agency Formation Commission held a duly noticed community workshop regarding the proposed annexation to obtain community input. E. On December 10, 2018, the Planning Commission held a duly noticed public hearing and voted to recommend that the City Council adopt a resolution approving General Plan Amendment No. 2018-04. EXHIBIT 4 Resolution No. 2019-xx 75C-39 Page 1 of 5 F. On September 3, 2019, the City Council of the City of Santa Ana held a duly noticed public hearing to consider all testimony, written and oral, related to General Plan Amendment No. 2018-04 for the Seventeenth and Tustin annexation project, at which time all persons wishing to testify were heard, the project was fully considered, and all other legal prerequisites to the adoption of this Resolution occurred. G. Pursuant to the California Environmental Quality Act (Pub. Res. Code sec. 21000 et seq.; "CEQA"), and the State CEQA Guidelines, the City has determined that a Categorical Exemption will be filed for the proposed project. In conjunction with the City's CEQA determination regarding the annexation, the County of Orange has completed a negative declaration (ND) for the two developments. The ND will identify any potential impacts to the environment and identify mitigation measures to reduce or eliminate the impacts. The lead agency for the ND is the County of Orange. H. General Plan Amendment No. 2018-04 has been filed to amend the General Plan to change the land use designation of certain parcels located in the Seventeenth and Tustin County island boundaries. The proposed land use designations will be consistent with the current land uses and proposed pre - zoning designations of the annexation project area. The amendments will pre -designate properties located in the annexation area as Low -Density Residential (LR-7), Medium -Density Residential (MR-15), or General Commercial (GC) as shown on Exhibit 1, attached hereto and incorporated herein by reference. I. The City Council has weighed and balanced the General Plan's policies, both old and new, and has determined that based upon this balancing that General Plan Amendment No. 2018-04 is consistent with the purpose of the General Plan, Section 2. CEQA Compliance. In accordance with the California Environmental Quality Act (CEQA) and the State CEQA Guidelines, a categorical exemption will be filed for this project pursuant to section 15319. This Class 19 exemption applies to projects involving annexation of existing facilities and lots for exempt facilities such as public and private structures developed to the density allowed by the pre -zoning of the City. The proposed annexation area is developed to the density allowed by the current zoning or pre -zoning, with the extension of utility services having the capacity to serve only the existing facilities. More specifically, the proposed annexation will consist of the 24.78-acre parcels of land in its entirety that includes private residential and commercial structures as well as three vacant parcels of land that are located at the southwest section of the annexation area. As the annexation area is developed to the density allowed by both the current zoning of the County and the pre -zoning designations proposed by the City, and no new utility services are proposed for the existing structures within the annexation area as part of this project, Resolution No. 2019-xx Page 2 of 5 75C-40 the Class 19 exemption is applicable to this project. The City Council has, as a result of its consideration and the evidence presented at the hearings on this matter, determined that, as required pursuant to CEOA, a categorical exemption adequately addresses the expected environmental impacts of this project. On the basis of this review, the City Council finds that there is no evidence from which it can be fairly argued that the project will have a significant adverse effect on the environment therefore, it is categorically exempt from the requirement for the preparation of environmental documents. Based on this analysis, a Notice of Exemption for Environmental Review No. 2018-89 will be filed for this project. Section 3, Approvals. The City Council of the City of Santa Ana after conducting the public hearing hereby approves General Plan Amendment No. 2018-04, The amendments to the Land Use Element are attached hereto as Exhibit 2 and incorporated herein by this reference as though fully set forth herein. This decision is based upon the evidence submitted at the above said hearing, which includes, but is not limited to: the Request for Council Action dated September 3, 2019 and exhibits attached thereto; and the public testimony, written and oral, all of which are incorporated herein by this reference. Section 4. This Resolution shall not be effective unless and until Ordinance No. NS- (AA No. 2018-07) become effective. If said ordinance is for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, or otherwise does not go into effect for any reason, then this resolution shall be null and void and have no further force and effect. Section 5. This Resolution shall not be effective unless and until the Orange County Local Agency Formation Commission (LAFCO) passes a resolution adopting the annexation of the County island. If the resolution is for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, or otherwise does not go into effect for any reason, then this Resolution shall be null and void and have no further force and effect. ADOPTED this ____ day of 2019. Miguel A. Pulido Mayor Resolution No. 2019-xx 75C-41 Page 3 of 5 APPROVED AS TO FORM: Sonia R. Carvalho, City Attorney f / Lisa Storck Assistant City Attorney AYES: Councilmembers NOES: Councilmembers ABSTAIN: Councilmembers NOT PRESENT: Councilmembers CERTIFICATE OF ATTESTATION AND ORIGINALITY I, DAISY GOMEZ, Clerk of the Council, do hereby attest to and certify the attached Resolution No. 2019-xx to be the original resolution adopted by the City Council of the City of Santa Ana on 2019. Date: Resolution No. 2019-xx Page 4 of 5 Clerk of the Council City of Santa Ana 75C-42 Exhibits 1 and 2: General Plan Amendments Resolution No. 2019-xx 75C-43 Page 5 of S ��-P u u 'n fi C w -� nr�■■■nr�■■r�, m v,;�j t�� m 1f ■ 75C-44 City of Santa Ana General flan Circulation Element 1998 City of Santa Ana Planning Division Adopted February 2, 1998 (Reformatted January 2010) EXHIBIT 2 This document includes revisions to the Circulation Element as passed by the voters of Santa Ana April 5, 2005 (GPA 2004-01), as adopted by Santa Ana City Council July 6, 2004 (GPA 2004-06). March 21, 2011 (GPA 2011-01), and (GPA 2018-04 pending). 75C-45 CIRCULATION ELEMENT Exhibit 1 Master Plan of Streets and Highways Street Classifications Freewoy O Principal O Malor A,tencl Primary Arteriol .. � Secondory Anenal .,.,.,n Commoler .......... Local Commercwi CITY OF SANTA ANA GENERAL PLAN Enhanced Intersections !Nerchonge City Limas 75C-46 CIRCULATION ELEMENT Exhibit 2 Bikeway Master Plan Garden Grove 000 r fj r A ol ` I- r L4 Costa Mesa ClassfBikePath Class 11 Bike Lane Routes to Adjacent Cities I I . Railroad * Santa Ana River Rest Stop CITY OF SANTA ANA GENERAL PLAN Orange Irvine A Inurtul I � N 0 06 12 Miles 75C-47 13 CIRCULATION ELEMENT Exhibit A-1 Regional Location CITY OF SANTA ANA GENERAL PLAN A I 75C-48 ExhibitA-2 CMP Intersections/Smart Streets — — — Smart Street OCongestion Management Plon Intersedions -- City Limits CIRCULATION ELEMENT CITY OF SANTA ANA GENERAL PLAN 75C-49 CIRCULATION ELEMENT Exhibit A-6 Roadway Reclassifications and Other Intersections Improvements RT. `• 21 r Lw �r•i T• � �_ � 1 •A.i4 A+t _ 5 power i i + crte, r� 4 � I f4A'M wK i A u AK 1 - 5 Nr 4 4AI � £AMA4 Art WFsrW sn, AK� r- � m.. 5. I• I WA9.n•GrCMA,S I � e ,I 1• r •• ©a.ttarsrtr or r•� t�t,J a. s` SAMA ANA I iM E 1 i • t j CK5 tR A. l • , � � i _ • � � �e ee�wu Y ti � � i ` �� r,orxW AK # n • 55 �•rt � 7 uT• _ Jlp \ • O y.... ........ ..r• 1 .........FW=M. v[ 1 •.. _. •••t•. w � � 5 MIQREW M1. Y j P -wu,r i....� WAINF. AM ii S 0 ti 5U'E11 AK 1" _.. � -� 1 i 5(bE[51rtd. r 5 � •..� PRa SG � p�•4 y` LL I.F . � ce< j } ANON.. q j 4 � LwSM �' • AKA • • y -Al R'VILf h •�`i •O F 1 >r'.' � •K�x c i i n Segments with Changed Classifications r,E:.w•ai ___ RCC1454ified as LGGOI Pnnapal •••••••• •Local Commemal Iuue511 Major Arterial Primary Arterial Other Improved Intersections —� • La, Limas • • Secondary Arterial n 11 r 1 u Commoter-' CITY OF SANTA ANA GENERAL PLAN A-23 75C-50 Exhibit A-8 Intelligent Transportation System aCMS Sites CCTV SO, OHAR Transrndfer OTroff.c Monogem l CeNe, TMCI Cotl,ans Dwnd 17 OH¢e QT,,db1m,, S!gm CIRCULATION ELEMENT 31F11 CITY OF SANTA ANA GENERAL PLAN 75C-51 A-)7 CIRCULATION ELEMENT Exhibit A-9 Public Transit (Bus) Routes © Streels Served by Pubk Tronsd INRegianal Transportation Cenler OSawa A o Tronsd Terminal CITY OF SANTA ANA GENERAL PLAN -- 75C-52 CIRCULATION ELEMENT Exhibit A-10 Truck Routes OWN © Local T.ock Robles ?ermnol Access Robles OLocal Trock Robles r CITY OF SANTA ANA GENERAL PLAN 75C-53 Exhibit A•11 Porldng Facilities ❑ Parking Srcucsv,zs Pnrk and R,de Faulifies Snnfc Ana TronsA Tern3ica; DReq�oncl iranzpononor+ Cew CITY OF SANTA ANA GENERAL PLAN CIRCULATION ELEMENT A-37 75C-54 Ex CIRCULATION ELEMENT CITY OF SANTA ANA GENERAL PLAN 75C-55 A-41 City of Santa Ana General Plan Economic Development Element 1998 City of Santa Ana Planning Division 0 Adopted July 6, 1998 (Reformatted January 2010) This dccomcm includes revisions to the Economic Dc�clopmcnt Element adopted by Santa Ana City Council (GPA XQ8-04 pending). 75C-56 Exhibit 1 Regional Map ECONOMIC DEVELOPMENT ELEMENT CITY Of SANTA ANA GENERAL PLAN 75C-57 City of Santa Ana General Plan Education Element 1988 City of Santa Ana Planning Division (a Adopted January 19, 1988 (Reformatted January 2010) This document includes revisions to the Education Element adopted by Santa Ana City Council (GI :k 2018-04 pending). 75C-58 Exhibit 1 School Districts in Santa Ana ' SM sT FiP Si S.MT1 .N ,s, 6i f uC[.oLEN Y r l 4 FpNGiP aYi fr a I / / 3 \.. YGFPSlppY /._• I _ Y.C.RTNVP !E �e {R EDUCATION ELEMENT i School District Boundaries y) CITY OF SANTA ANA GENERAL PLAN 75C-59 Exhibit 2 Elementary School Boundaries C),er Capcaty CITY OF SANTA ANA GENERAL PLAN EDUCATION ELEMENT 75C-60 Exhibit 3 Intermediate School Boundaries r_on�aiy EDUCATION ELEMENT LIIY OF SANIA AMA GENERAL PLA+d 75C-61 EDUCATION ELEMENT Exhibit 4 High School Boundaries = O,«. CoF ., CITY OF SANTA ANA GENERAL PLAN 73 75C-62 EDUCATION ELEMENT Exhibit 5a General Plan land Use Map �I Land Use Designations QLR-r IL.. Density Resgermat) '3� mS Nhsounv..nl) LMR-tt (Low -Medium Density Residenaat) - 0 (0t s. Spacy ® MR. 15 (Medium Density ResOenkal) pC 11)nirct Cervefp UM tu'E nNE hWrM1pod) • 40rwvslaW+Oer:fl GC(Gene.al ICw 13n Wway meva a.Ov) IND JIM..Weit) CITY OF SANTA ANA GENERAL PLAN 31 75C-63 Exhibit 6 Residential Development 1984-1986 CITY OF SANTA ANA GENERAL PLAN EDUCATION ELEMENT 75C-64 Exhibit 7 Proposed School Sites for SAUSD EDUCATION ELEMENT CITY OF SANTA ANA GENERAL PLAN 75C-65 EDUCATION ELEMENT Exhibit 8 Potential School Sites 500 and Over O Potenhol See Location 300-500 Unee ED 100-300 Umtt El 25 - IGO Unds El Under 25 Uoes 1� CITY OF SANTA ANA GENERAL PLAN 75C-66 City of Santa Ana General Plan ManagementGrowth 1991 City of Santa Ana Planning Division Adopted July 1, 1991 (Reformatted January 2010) This document includes revisions to the Growth Management Element adopted by Santa Ana City Council (GPA 20t8-04 Pending). 75C-67 Exhibit 2 Major Development Areas A Main Place B Museum Distnd C Downtown D MacArthur Place/Hutton Center E. South Coast Metro P Freeway OHice Center G Freeway Business Center CITY OF SANTA ANA GENERAL PLAN GROWTH MANAGEMENT ELEMENT OWN 75C-68 City of Santa Ana General Plan Land Use Element 1998 City of Santa Ana Planning Division Adopted February 2, 1998 (Reformatted January 2010) The folloavmg is a chronology of the approved general plan amendments that have been incorporated into this document since the comprehensive update of General Plan Land Use Element adopted by the Santa Ana City Council February 2, 1998 (GPA 1997- 05): GPA 2018 G4 (cendno GPA 2018 05 (December 4, 2018) GPA 2018-03 (September 18, 2018) GPA 2018-02 (May 15, 2018) GPA 2015 01 (May 15, 2018) GPA 2017-02 (December 19,2017) GPA 201701 (June 20, 2017) GPA 201603 (February 21, 2017) GPA 2016-02 (May 17, 2016) GPA 2016-01(Aprll 19, 2016) GPA 2015 03(Fetauary 2, 2016) GPA 2014 02 (October 21, 2014) GPA 2014 01 (June 3, 2014) GPA 201103 (Mach 19, 2)12) GPA 2011-02 (June 6, 2011) GPA 2010 01 (June 7, 2010) GPA 2008-02 (July 20, 2009) GPA 2007-03 (May 18, 2W9) GPA M01 (May 5, 20W) GPA 2004-03 (February 2, 20W) GPA 2007-02 (June 18, 200 ) GPA 2007-01(Match 19, 2007) GPA 200001(October 2, 2006) GPA 2005 01 5, 2005) GPA 200502 (October 17, 2005) GPA 2004 01 (April 5, 2005, as pursed by the voters of Santa Ana) GPA 2004 04 Puy 19, 2004) GPA 2004-06 (Jury 6, 2W4) GPA 2003.02 (June 16, 2W3) GPA 2W3 01 (February 18, 2003) GPA 2002-01(Sepember 3, 2002) GPA 2002-03 (August 19, 2002) GPA 2001-03 (February 19, 2002) GPA 2001-02 (January 7, 2002) GPA M09 (May 7, 2001) GPA 200008 (February 5, 20)1) GPA 200003 (December 4, 2000) GPA 200002 (Movember 20, 2000) GPA 1999 02 (October 18, 1999) GPA 1999 01 (August 16, 19%) GPA 1998 04 (October 5,1998) GPA 199805 (September 21, 1998) GPA 1998 01 (May 4, 1998) 75C-69 Exhibit 1 Regional Location CITY OF SANTA ANA GENERAL PLAN LAND USE ELEMENT 75C-70 m__oa Rpgg� �a � a N z• 3 - i 9 •8 N NNf; 9�`. 3 = ? O J 75C-71 LAND USE ELEMENT 325,888 persons according to the State Department of Finance estimates. Since 1980, the number of persons living in the City grew by more than 73 percent. During this period of substantial population growth, the number of housing units remained relatively stable. Other notable demographic changes have occurred as well. The City's population is getting older. The median age of the population in 1980 was 26.2 years. By 2000, it had increased to 26.5 years compared to a median age of33.3 years for the County overall. REGIONAL CONTEXT The City of Santa Ana is located approximately 30 miles southeast of downtown Los Angeles, and 10 miles northeast of Newport Beach in the west -central section of Orange County. Santa Ana is bordered by the City of Orange, amf u eerpe, t arras 49rangeGetmtr" then rth;,.the City of Tustin on the east; the cities of Irvine and Costa Mesa on the south,; and the cities of Fountain Valley and Garden Grove on the west. Freeway access to the City of Santa Ana is provided by the Garden Grove Freeway (SR-22) and the Orange Freeway (SR-57) on the north, the Santa Ana Freeway (1-5) on the northeast, the Costa Mesa Freeway (SR-55) on the east, the San Diego Freeway (1-405) on the south. REGIONAL TRENDS Santa Ana is the largest City in Orange County in terms of population (9 percent of the County population) and fourth in terms of land area (27.3 square miles). Approximately 58 percent of the City's land area is developed with residential uses. Commercial areas account for approximately 15 percent of the City's total land area, and industrial uses cover approximately 14 percent. The City's January 2009 population is estimated by the California Department of Finance to be 355,662 persons. The 2009 housing stock consists of 75,856 dwelling units and the average household size is 4.7 persons per household. The City experienced rapid population growth from 1970 through 1990. The City's population in 1970 was 155,710 persons. By 1990, the population had increased to 293,742 persons, representing an increase of 89 percent, while the County's population increased by only 25 percent. Moreover, during this period of intensive population growth, the number of housing units in the City only grew by approximately 12 percent. The City's growth trends since 1990 have been more modest and is expected to continue at approximately one percent per year through the year 2010. The City's housing production is likewise expected to continue to be stable. There has been little growth in housing over the last several years; however, additional infill housing is anticipated through 2015 particularly in the City's District Centers. With even modest population growth at the current rate of housing production, the City is likely to continue to experience a rise in average household size. A-7 CITY OF SANTA ANA GENERAL PLAN 75C-72 Exhibit A-1 Merge Redevelopment Plan wDowntown osa ,h Ma 17—It North Horbo, E3 South Harbor fnfemty CITY OF SANTA ANA GENERAL PLAN LAND USE ELEMENT A-5 75C-73 LAND USE ELEMENT ExhibitA•2 Enterprise Zone 574Y Enterprise Zone Atea (Ffleeeve Darc' June$ 7CY�1 Enterprise Zone Expansion Area VETA AV (EMzrnr (krre Fe+vruay 21 mrW '.... —•- Santa Ana City limits 22 _ ilC AVFN - _— TRASK Ali SANTA CLA Ati WA 3HINGTDN WASHINGTDN AV. i \ 'J E— CM NTER DR. w � s r r ST, T T sr. i m i M FADDEN AV J m LL N y EDINGER AV. n a x m w 55 =o u P A cF AV Py� P {o /" DYER R - <E"F RSTROM S "J w " MA ARTn�R BLL \ SUNFtGWFR AV_ F \ \\ \ A I N 405 � 1 CITY OF SANTA ANA GENERAL PLAN 75C-74 CL W i !� i s` 8 9- O C • d N j Q U) lL xe 3 '55!p p 813 s3ga9} E $ gE J C _ N `x T� i$��5� '� ��•$4idr,q$a�e � � Fa � LAND USE ELEMENT Residential The Land Use Plan provides for three distinct residential land use designations. Residential development is also permitted in two other designations: District Center and Urban Neighborhood. The Santa Ana Land Use Plan includes the following residential land use designations: The Low Density Residential (LR-7) designation applies to those areas of the City which are developed with lower density residential land uses. The allowable maximum development intensity is 7 units per acre. Development in this category is characterized primarily by single-family homes. This designation applies to a large proportion of the City (6 474.46;4546 acres) representing 47 percent of the City's total land area. The Low -Medium Density Residential (LMR-I1) designation applies to those sections of the City which are developed with residential uses at permitted densities of up to 11 units per acre. The land area included in this designation is approximately 421.64246acres. The great majorityof the land designated as Low -Medium Density Residential is located in the westerly portion of the City, north and south of First Street. Properties with this designation are typically characterized by mobile home parks, a mixture of duplexes and single Family residences, or small lot subdivisions. The Medium Density Residential (MR-15) designation applies to those sections ofthe City which are developed with residential uses at densities of up to 15 units per acre. Development in this designation is characterized by duplexes, apartments, or a combination of both. A total of 362.3 acres is designated as Medium Density Residential. Thedesignation applies to areas located in the vicinity of downtown, areas north and south of MacArthur Boulevard, and in other areas where there are established multiple -family development projects. CITY OF SANTA ANA GENERAL PLAN I" 75C-76 LAND USE ELEMENT The Land Use Plan identifies three land use designations that encourage a variety of office, retail and commercial enterprises to serve the community. • The Professional/Administrative Office (PAO) designation applies to those areas where professional and/or administrative offices are predominant, or where such development is being encouraged. Land included in this designation is found primarily near the Civic Center, and along the First Street and Tustin Avenue Corridors in close proximity to freeways. There are other smaller PAO areas in the City such as along North Broadway and along portions of east and west Seventeenth Street. A total of 859.2855.3 acres is included in this land use designation. The floor area ratio intensity standard applicable to this land use designation ranges from 0.5 to 1.0. The Professional and Administrative Office areas are intended to provide a unique environment for office development in those areas of the City where office uses are the predominant land use. The purpose for maintaining and supporting these areas exclusively for office and office -related uses is to encourage major employment centers at locations which significantly lessen the impact to the City's local street system. The First Street/Tustin Avenue office corridor between the Santa Ana (I-5) and Costa Mesa (SR-55) Freeways serves this purpose. In addition, the orderly, well -maintained quality of existing development supports a continuation of these areas as functional office/employment centers. The Professional and Administrative Office designation includes a range of floor area ratios to differentiate development intensity and character in relation to adjacent land uses. The areas with a FAR of 0.5 are not major office centers, but rather have an established character of lower intensity garden office and professional service uses. These areas are typically adjacent to low density residential neighborhoods, or are converted residential office uses. Office development along East Fourth Street, between Grand Avenue and the Santa Ana Freeway, is typical of this low-rise office character. The PAO area located adjacent to the Civic Center contains a range of office development intensity which supports the City's functional role as the government center of the County. The types of uses typically located in the PAO district include the following: • Professional and administrative offices/office parks; • Service activities such as copy centers, courier services, travel agencies, and restaurants when such uses are an integral component of a planned office development; and • Professional uses such as accountants, attorneys, doctors, engineers, and insurance brokers. A-20 75C-77 CITY OF SANTA ANA GENERAL PLAN LAND USE ELEMENT The General Commercial (GC) district applies to commercial corridors in Santa Ana including those located along Main Street, Seventeenth Street, Harbor Boulevard, and other major arterial roadways in the City The intensity standard applicable to this designation is a floor area ratio of0.5 - I.O, though most General Commercial districts have a FAR of 0.5. A total of862.2 8583-acres of land is included in this designation. General Commercial districts are key components in the economic development of the City. They provide highly visible and accessible commercial development along the City's arterial transportation corridors. In addition, General Commercial land uses provide important neighborhood facilities and services, including shopping, recreation, cultural and entertainment activities, employment, and education. The districts also provide support facilities and services for industrial areas includingoffice and retail, restaurants and various other services. The General Commercial development standards are based upon the character and intensity of development, as well as the degree of access and market demand for these properties. The relationships to adjacent land uses, are also considered. Uses typically located in this district are: • Business and professional offices; • Retail and service establishments; • Recreational, cultural, and entertainment uses; and • Vocational schools. General Commercial Districts have a floor area ratio of0.5 with the exception of the Mid -town area which has an floor area ratio of up to 1.0. One Broadway Plaza District Center is a separate land use designation as it has an F.A.R. of2.9, which exceeds the typical District Center intensity limit. Additionally, it does not include a residential component. One Broadway Plaza is envisioned as a landmark professional office complex that will be a focal point in the Downtown Redevelopment area serving the Civic Center complex, Downtown, and Midtown urban areas. The City's District Centers and major development areas are shown in Exhibit A-5. CITY OF SANTA ANA GENERAL PLAN 75C-78 LAND USE ELEMENT interagency Development Review Committee (DRC) to ensure consistent and comprehensive application of City regulations and policies for all projects. • Redevelopment Plans. The City will apply redevelopment tools associated with the implementation of the adopted redevelopment plans, as appropriate. The City will encourage the further development of industrial, commercial, and residential projects in suitable locations to strengthen the City's tax and employment base. Special Studies. In certain instances, a special study may be required to address a particular issue. In these cases, a specific effort to identify staff resources needed to conduct the appropriate investigation and analysis will be identified. Zoning Code Review. The zoning code serves as a primary tool used by the City to regulate development. The City will develop a program to revise the Zoning Ordinance to ensure that development regulations and standards are consistent with community needs and high quality development. The City will initiate appropriate changes to the ordinance to ensure, where appropriate, conformity between the Land Use Element and Zoning Map. LAND USE PLAN BUILDOUT As indicated previously, the City of Santa Ana has been almost completely developed for many years. As a result, any new development will necessarily consist of redevelopment and infill development on the remaining vacant and underutilized parcels. Many parcels with nonresidential land use designations will never be developed to the maximum intensity permitted under the General Plan. Table A-4 indicates the development possible under the build -out of the Land Use Plan. The build -out for residential land uses considered two scenarios. Effective build -out for residential development is calculated by adding the 21,255 units possible in the areas designated as District Center and Urban Neighborhood to the existing 74 669 -7 ;, units presently found in the City per Census 2000. Theoretical build -out for residential development considered the development possible if all of the areas designated as residential were developed according to the permitted Land Use Plan intensities. Since the Land Use Element does not contemplate the elimination of existing housing in the City, the effective build -out figure represents a more realistic estimate of future residential development. As indicated in TableA-4, three of the non-residential land use designations have a range in FAR intensities. For the non-residential land use designations, effective build -out considered the development possible under the lower range of FAR intensities while theoretical build -out considered the upper FAR range. Typically, parking and landscaping requirements will result in significantly less floor area for commercial and industrial developments than that which is permitted under the General Plan. CITY OF SANTA ANA GENERAL PLAN A-33 75C-79 LAND USE ELEMENT As indicated in Table A-4, between 76,998 to 95,924 99;844—housing units are allowed by the Land Use Plan. The additional units which presently exist in the City beyond the maximum number permitted under the theoretical buildout scenario are a reflection of the higher density multiple -family developments constructed in the 197O's and 1980's. However, the purpose ofthe Land Use Plan as it applies to the residential areas is to preserve and maintain the stability of existing neighborhoods, regardless of the character ofdevelopment. The intent of the Plan is not to create any displacement, nor decrease existing development densities. Rather, it is to ensure a safe, healthy, and livable environment for City residents. Existing residential development entitlements are protected through this Land Use Element, applicable Zoning regulations, and sections of the City code pertaining to legal nonconforming uses. The Land Use Element's implementation may result in an increase in the amount of commercial, office, and industrial development in the City. As indicated in Table A-4, up to 32,407,333 32-,3-20,2 F3square feet ofcommercial and office development, and 42,199,991 square feet of industrial development are possible under the effective capacity parameters of Land Use Plan. CITY OF SANTA ANA GENERAL PLAN 75C-80 LAND USE ELEMENT Table A•4 nncnaurr r.murne sruuuuur Land Use Acres i Oensiliv Low Density Residential LR-7 6 474.47d SAWA Wac Low Medium Density Residential LMR-11 420.E 11 du/ac Medium Density Residential MR-15 15 War: Subtotal 7,217.i District Center Other' DC 309.5 90 du/ac FAR 1.0-2.0 11'955,583 s1 3,077 du Heritage DC 18.8 FAR 1.7 54,090 sf 1,221 du Downtown DC 62.5 FAR 3.0 2,057,824 st 1,661 du Metro East DC 113.9 FAR 0.75- 3.0 2,464.776 sf 5,037 du Transit Village DC 51A FAR 5.0 402,864 st 2,761 du Harbor Corridor DC 125.0 FAR 5.0 1.836,155 sf 2,029 du Urban Neighborhood UN 313A FAR 0.5-3.0 1,656,955 sf 5.529 du Subtotal 994,5 20,428,247 sf 21,255 du Theoretical 45,321 du 4,627 du 5.440 it 6.421idu 55.397 du 66,249 du 23,764,534 sf 3,017 du 54,090 s! 1,221 du 2,057,824 sf 1.661 du 2,464,776 sf 5,037 du 402,864 sf 2,761 du 1,836.155 s 2,029 du 1,656,955 s! 5,529 du 32,327,198 91 21,255 du Professional & Admin. Office PAO 600.8 FAR 0.5-1.0 13.085,424 sf 26,170,848 s1 General Commercial GC FAR 0.5-1.0 38.S4i,7§86 I 37,553�f ,543,193 One Broadway Plaza District CW OBPOC 4.3 FAR 2.9 543,193 at sf Subtotal 1 4467.3 1,463.3 32.407333 It I 3222A213-U .64,271,473 if 6q�87-233-st Industrial IND 2,152 8 FAR 045 42,199991 sf 42,199,991 sf Institutional INS 800.6 FAR 0.2-0.5 6,974,740 st 17,436,850 sf Open Space OS 1,010.9 FAR 0.2 8.806,961 sf 8,806,961 at Subtotal 1,811.5 15,781,701 if 26,243,811 st FAR=floc area ratio: d.u.=dwelling unit s.f.=square feet (of Boor area). Acreage shown in table does na incWde roads in right-af-way. I Effective capacity for non-residential development assumes development possible under the lower range of FAR intensity standards with the exception of the Metro East District Center, Transit Village District Center, Downtown District Center, Heritage District Center, and Urban Neighborhood areas. The Harbor Corridor District Center, Metro East District Center, Transit Village District Center, Downtown District Center, and Urban Neighborhood areas allow a range of intensity for mixture of residential and non-residential development based on the zoning development standards Residential effective capacity was calculated by adding the 21,255 units possible in the District Center and Urban Neighborhood with the existing 74 6 ..488 (Census 2000) housing units. ' Land use designation permits both residential and non-residential development. Build -out assumes 90% of land area will be developed as commercial and 10% will he developed as residential: with the exception of Town and Country Manor project intended for continuum of care and housing seniors. ' Land use designation permits high intensity office development with ancillary retail use. This table has been revised to correspond with the GIS Land Use Map illustrated in Exhibit 2. CITY OF SANTA ANA GENERAL PLAN A-35 75C-81 LAND USE ELEMENT Exhibit A-7 Liquefaction p ns 12M'I. mmwmwmmp� CITY OF SANTA ANA GENERAL PLAN '',-43 75C-82 Exhibit A-8 Subsidence U) Subsidence LAND USE ELEMENT Cl iY OF SANTA ANA GENERAL PLAN 75C-83 Exhibit A•9 Flood Hazards ® 100 Year Flood Zone 500 Year Flood Zone CITY OF SANTA ANA GENERAL PLAN LAND USE ELEMENT �•�.� Ci7Vmin 0 06 1.2 Miles 75C-84 Exhibit A-11 Archaeological Sensitivity aSurrey Safes ® A.choeoloycal Stes LAND USE ELEMENT CITY OF SANTA ANA GENERAL PLAN 75C-85 Exhibit A-12 Historic Resources LAND USE ELEMENT C t. r 55 } a .�. wetmrta . +o5 Historic DWI;d CITY OF SANTA ANA GENERAL PLAN I� r- WAeiAfriQry AY � i l.We uu L A-61 75C-86 City of Santa Ana General Plan Noise Element 1982 City of Santa Ana Planning Division 0 Adopted September 20, 1982 (Reformatted January 2010) This doatment includes revisions adopted by Santa Ana City Counal Febroa,v 2, 2009 (GPA 2004-03) and (GPP, 2D18 {H pr nd uiK �. 75C-87 Exhibit 5 Transportation Noise Sources CITY OF SANTA ANA GENERAL PLAN NOISE ELEMENT .me O,stanra Fran Right -of -Way hoysand) to65CNELCrmtrx,r 3W 100f feet 2030 50-100 feet 15-20 25 50 feet 10,15 025 feet 75C-88 City of Santa Ana General Plan Open Space, Parks an Recreation Element 1982 City of Santa Ana Planning Division AJopteA September 20, 1982 )Reforma0ed January 2010) This document includes revisions adopted by Santa Ana City Council July 19, 2004 (GPA 2004-04) addressing local watershed and stormwater management for the National Pollutant Discharge Elimination System (NPDES) and (GPA 2018 0A pending). 75C-89 OPEN SPACE, PARKS AND RECREATION ELEMENT Exhibit 4 Open Space Plan Porks Schools ® Other (Golf Courses, Cemeteries, etc.) CITY OF SANTA ANA GENERAL PLAN 75C-90 City of Santa Ana General Plan Public Safety Element 1982 City of Santa Ana Planning Division a Adopted September 20, 1982 (Reformatted January 2010) This document includes recisions adopted by Santa Ana City Council July 19, 2004 (GPA 2004-04) addressing local watershed and stormwater management for the National Pollutant Discharge Elimination System (NPDES), February 4, 2014 (GPA 2013-01) in compliance with AB 162, and (GPA 21118-04 pendue)- 75C-91 PUBLIC SAFETY ELEMENT Exhibit 4 Flood Hazard Areas . � �lr A t(• �.y �;. ;.cA9ceNcnav= eFw .Rr• .�� " •• .'r'.'.'r'r'.'. '. y e � NX'f CIIPAAV '.NETNMSIEP AV .' iTT'f 4' IF149 < J F wAeN Nc:-c. Av � N• ,_• • m f5'S fg�T 'n. OUST. .1.�•'�•1FLF � nv .m Z p •\"44 •S KfA�F, jAV C i d E3RGF0. AV OM'£9A D mAV 6 � i So WMNER AV W.TrfR AV Ake 6FGF991PdA Av G . L $¢ n f9 ,L ♦� g' � � y S / NACwFn9A aw i \ �� TuNROMR AV Legend 100-Year Flood Ris+ 500. Year Flood Rise Undelerm;ned Flood Hazard IG CITY OF SANTA ANA GENERAL PLAN 75C-92 City of Santa Ana General flan Public Facilities Element 1982 City of Santa Ana Planning Division a Adopted September 20, 1982 (Reformotted Jon uory 2010) This document includes revisions to the Public Facilities Element adopted by Santa Ana City Council (GPA 1018-04 pending). 75C-93 Exhibit 4 Public Facilities Plan 0 Elementary School C-) Junior High School Q Junior College A High School Other Public Facilities- 0 Post Office % Hospital • Police Station • Bowers Museum CITY OF SANTA ANA GENERAL PLAN PUBLIC FACILITIES ELEMENT r. Library On Fire Station W Special School dh Santo Ana Unified School District Office O Parks Government Complex . e r 75C-94 City of Santa Dina General Plan Seismic Safety Element 1982 City of Santa Ana Planning Division Adopted September 20, 1982 (Reformatted January 2010) This document includes revisions tothe Seismic Safety Element adopted by Santa Ana City Council (GPA 2f18-H pending). 75C-95 Exhibit Potenfial Svbsidence Areas 3 CITY OF SANTA ANA GENERAL PLAN SEISMIC SAFETY ELEMENT Awe , Are 6. n.e 75C-96 SEISMIC SAFETY ELEMENT Exhibit 5 Potential Liquefaction Areas •� t Garin Gwn Bbd "' Govan G.n.. \ l SwG... .. Wnm..nuo A.. '�•� - . •... W utl A.. ��OFSI om AL M<{ Wbn r... 'i. ..... .... WFbtl.n A.., Ednp. Av.. n � � S Wvn.• Aw. S.p..11rom Ar. y p M<Anna. Blrtl 4 q Q N _ m CITY OF SANTA ANA GENERAL PLAN 75C-97 City of Santa Ana General flan Urban Design Element 1998 City of Santa Ana Planning Division Adopted July 6, 1998 (Reformatted January 2010) This document includes revisions to the Urban Design Element as passed --by the voters of Santa Ana April 5, 2005 (GPA 2004-01), as adopted by City Council March 19, 2007 (GPA 2007-01), August 21, 2018 (GPA 2018-01), and (GPA 2018-01 pending). 75C-98 URBAN DESIGN ELEMENT Exhibit 3 Existing City Form Map ® Londmorks ® Nodes ® Districts ® Mojor Poths Minor Poths E iVR'.Mffi{ iA 19 NS, , CITY OF SANTA ANA GENERAL PLAN 75C-99 Exhibit 4 City Form Map URBAN DESIGN ELEMENT ..//.S fAiPuaYLN IV i11 _ I.II sl lsl■� ��j ,1>4 _ i I i Yt��--�� if� III � IIIII__J —= 1 I I ��__s�c_stanu�lll�a— N�a: I nl 111 7 I I! I ilIt , 1 "` ,- ,J tit- II Dow NegnEomootlx Paths: TrarNly Poula ® Nadex CPttlnat. point foot ln[erte[twns: Local Ppea ® Landmat4: Focal Points ® GalevaY4 Pmval Volnit :' O6 I]hfAm cmbmita -� CITY OF SANTA ANA GENERAL PLAN 75C-100 URBAN DESIGN ELEMENT Exhibit 5 Districts 1. Trask Fairview 12. Downtown 23. South Harbor Blvd. 2. Northwest 13. Broadway 24. Thorton Park 3. North Main 14. French Park 25. Bristol Manor/SE Side/Delhi 4. Park Santiago 15. Intercity/RTC 26. Freeway Window 5. Cabrillo Park 16. 4th St. Professional 27, Armstrong 6. West Side 17. Tustin Ave. 28. South Coast 7. Harbor Blvd. 18. Midcity 29. Sand Pointe 8. Santa Ana 19. Central Historic 30. MacArthur Place/Hutton Center 9. Artesia Pilar 20. South Main 31. Freeway Corporate 10. Washington/Willard 21. Eastside 32. Metro East 06 12M„R 11. Flower Park 22. Southeast Industrial - - - City Limits�� CITY OF SANTA ANA GENERAL PLAN 25 75C-101 URBAN DESIGN ELEMENT Exhibit 6 Paths 1. Seventeenth St. 12 Cmc Center D,. 2 First Si 13 Santo Ano Blvd 3 Edinger Ave 14 fourth St 4 West Warner Are 15 McFadden Ave 5. East Dyer Rd 16 Warner Ave 6 East MacArthur Blyd. 17 Tustn Ave 7. Santa Ano Freeway 18 Grand Ave. & Costa Mesa{Newport Freeway 19. A.T. & S.F RR Line 9. Main St. 20. Foinn w Rd 10. Bristol St_ 21 Euchd Are - eh 11. Harbor Blvd. 22. West MocA,Ihur Blyd. CITY OF SANTA ANA GENERAL PLAN 97 75C-102 URBAN DESIGN ELEMENT Exhibit 7 Nodes 1? 1 .. r L.J • are _•• 5 is-n 9i ' �•. . ell 14 9 0 015 1 rl:r,x t„ a Diu sr 130 .fr sr 60 e4:11A All 160 17 70. �' ME9Nut AV 3 , �Mef ADDE§ Al `, 3• WrAWfN AV. RpNrii AV 120 Gr a a z waaNER A, s a sE�ER�.�3M r _ _ -MACARTHUR & OB 4 Q'uhIL.1111 AV r aas 1. Main Place Mall 10. Tustin Ave. South of 17th St. ]. Main St. Concourse 11. Santa Ana Zoo 3. MacArthur Place 13 Centennial Park 4. Hutton Center 13. Willowlck G.V Coarse S. South Coast Bristol 14. Bristol Marketplace 6. Cr,'Center 15. Rancho Santiago College ], Downtnsvnl4lh SUAmst Village 16 Regional TramportaM1on Center S. One Broadway Placa 17. Metro East 9 Bowers Museum 18. Habor Carndor Plan CITY OF SANTA ANA GENERAL PLAN 31 L._. —•— City Limits 0 0.6 1.3 Miles 75C-103 Exhibit 8 Focus Intersections 1. Main St and 17th St 2. Main St and First St 3. Mom St and Edinger Ave. 4. Ma,n St and Worner Ave 5, Grand Ave. and 17th St. 6, Grand Ave. and Fus1 St 7. First St and F.,,*e 51. 8. 8nstol St and Edinger Ave 9. &idol St. and First St. 10, Fairview St. and Ednger Ave. CITY OF SANTA ANA GENERAL PLAN URBAN DESIGN ELEMENT 11 Faeview St and 1 7th SI 12 First St and Eachd Ave 13. First St and Harbor Blvd 14. Harbor Blvd and McFadden A... 33 75C-104 Exhibit 9 Landmarks URBAN DESIGN ELEMENT 7 1. Mom Place Moll/Moan St. Concourse 8 Imersection of Main St. and MocAohur Blvd 2. City Wafer Tower 9 Intersection of Bristol St. and Sunflower Ave 3. Regional Transpodchon Center 10 Intersection of Warner Ave and Harbor Blvd d. Intersection of First and Main Streets 11. InterseCwn of Harbor Blvd. and Fast St. 5. 80cher Xero. Center 12 Intersecion of Fovmew Rd and f_ivic Center O,. 6. Santa Ano 200 13 Centerp.ml/Federal Court 7. Hotel Termce 14 One Broadway Plom CITY OF SANTA ANA GENERAL PLAN 37 1 75C-105 URBAN DESIGN ELEMENT Exhibit 10 Gateways 22 ski xt>nniwsrz� • v t3 ..v � I w•srmc.on Av fY >S! n >ISf I n War ii, (N Av � RGM'alR. AY wnwE[ nv a 2 V un*.- 9wM.CtwRw rr 34 Lf� 16 19 uCfs.CCEN nv 5f(iFIh+40M >T / PC .rli Av 3 to 10 i w 9 M RewseE WIh 19. 2007 1. Bristol St. at North City Limit 11. McFadden Ave. at Harbor Blvd. _ - _ City Limits 2. Main St. at North City Limit 12. First St. at Euclid Ave. 3. 17th St. at Tustin Ave. 13. Harbor Blvd. of North City Limit 4. Edinger Ave. at SR-55 Freewoy 14. Main St. at 1-5 Freeway S. East Dyer Rd. at SR-55 Freeway 15. 17th Sf, at 1-5 Freeway 6. MacArthur Blvd. at SR-55 Freeway 16. Santo Ana Blvd. of 1-5 Freeway 7. South Main St. of Sunflower Ave. 17. Fourth Si. at 1-5 Freeway 8. Bristol St. at Sunflower Ave. 18. First St. of 1-5 Freeway 9. MacArthur Blvd. of Fairview St. 19. Losson Rail Corridor 10. Harbor Blvd. of MacArthur Blvd 20. Metro East r CITY OF SANTA ANA GENERAL PLAN 39 75C-106 LS 9.3.19 ORDINANCE NO. NS-XXXX AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA ANA APPROVING AMENDMENT APPLICATION NO. 2018-07 PRE -ZONING THE PROPERTIES LOCATED WITHIN AN UNINCORPORATED COUNTY ISLAND PROPOSED FOR ANNEXATION GENERALLY LOCATED AT THE NORTHEAST CORNER OF SEVENTEENTH STREET AND TUSTIN AVENUE THE CITY COUNCIL OF THE CITY OF SANTA ANA DOES ORDAIN AS FOLLOWS: Section 1. The City Council of the City of Santa Ana hereby finds, determines and declares as follows: A. The City of Santa Ana (City) is requesting approval of Amendment Application No. 2018-07 to amend the zoning designation of a 24.78-acre unincorporated area of land that is currently located within the County of Orange and within the sphere of influence of the City of Santa Ana. B. General Plan Amendment No. 2018-04 was filed concurrently with the Amendment Application for consistency with the General Plan to incorporate Into the City's various General Plan elements. C. On December 10, 2018, the Planning Commission held a duly noticed public hearing and voted to recommend that the City Council adopt an ordinance approving Amendment Application No. 2018-07 which is consistent with the General Plan, as amended by General Plan Amendment No. 2018-04. D. The City Council has reviewed applicable general plan policies and has determined that this proposed pre -zoning is consistent with the purpose of the general plan. F. The City Council, prior to taking action on this ordinance, held a duly noticed public hearing on September 3, 2019. G. The City Council also adopts as findings all facts presented in the Request for Council Action dated September 3, 2019 accompanying this matter. H. For these reasons, and each of them, Amendment Application No. 2018- 07 is hereby found and determined to be consistent with the intent and purpose of Chapter 41 of the Santa Ana Municipal Code, thus changing of the zoning districts has been found to be consistent with the General Plan EXHIBIT 5 Ordinance No. NS-XXXX Page 1 of 4 75C-107 of the City of Santa Ana and otherwise justified by the public necessity, convenience, and general welfare. Section 2. The Planning Commission of the City of Santa Ana recommends that the City Council adopt an ordinance pre -zoning the real properties generally located at the northeast corner of Seventeenth Street and Tustin Avenue and Amended Sectional District Map number 4-5-9 showing the above described change in use district designation (AA No. 2018-07). This recommendation is based upon the evidence submitted at the above said hearing, which includes, but is not limited to: The Request for Planning Commission and Council Action dated December 10, 2018 and September 3, 2019, respectively and exhibits attached thereto; and the public testimony, all of which are incorporated herein by this reference. Section 3. In accordance with the California Environmental Quality Act (CEQA) and the State CEQA Guidelines, a categorical exemption will be filed for this project pursuant to section 15319. This Class 19 exemption applies to projects involving annexation of existing facilities and lots for exempt facilities such as public and private structures developed to the density allowed by the pre -zoning of the City. The proposed annexation area is developed to the density allowed by the current zoning or pre -zoning, with the extension of utility services having the capacity to serve only the existing facilities. More specifically, the proposed annexation will consist of the 24.78- acre parcels of land in its entirety that includes private residential and commercial structures as well as three vacant parcels of land that are located at the southwest section of the annexation area. As the annexation area is developed to the density allowed by both the current zoning of the County and the pre -zoning designations proposed by the City, and no new utility services are proposed for the existing structures within the annexation area as part of this project, the Class 19 exemption is applicable to this project. The City Council has, as a result of its consideration and the evidence presented at the hearings on this matter, determined that, as required pursuant to CEQA, a categorical exemption adequately addresses the expected environmental impacts of this project. On the basis of this review, the City Council finds that there is no evidence from which it can be fairly argued that the project will have a significant adverse effect on the environment therefore, it is categorically exempt from the requirement for the preparation of environmental documents. Based on this analysis, a Notice of Exemption for Environmental Review No. 2018-89 will be filed for this project. Section 4. The zoning designation of the real properties generally located within the 24.78-acre County island at the northeast corner of Seventeenth Street and Tustin Avenue shall be reclassified from the County's Local Business (C-1) and Single - Family Dwellings (R-1) designations to Community Commercial (C1), Single - Family Residence (R-1) and Two -Family Residence (R-2). An amended Sectional District Map, showing the above described changes in use district designation, is hereby approved and attached hereto as Exhibit 1 and incorporated by this reference as though fully set forth herein. Ordinance No. NS-XXXX Page 2 of 4 75C-108 Section 5. This ordinance shall not be effective unless and until Resolution No. 2018- (Environmental Review No. 2018-89 and General Plan Amendment No. 2018-04) is adopted and becomes effective. If either resolution and/or ordinance are for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, or otherwise does not go into effect for any reason, then this ordinance shall be null and void and have no further force and effect. Section 6. This ordinance shall not be effective unless and until the Orange County Local Agency Formation Commission (LAFCO) passes a resolution adopting the annexation of the County island. If the resolution is for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, or otherwise does not go into effect for any reason, then this ordinance shall be null and void and have no further force and effect. Section 7. If any section, subsection, sentence, clause, phrase or portion of this ordinance is for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of the ordinance. The City Council of the City of Santa Ana hereby declares that it would have adopted this ordinance and each section, subsection, sentence, clause, phrase or portion thereof irrespective of the fact that any one or more sections, subsections, sentences, clauses, phrases or portions be declared invalid or unconstitutional. ADOPTED this _ day of 2019. APPROVED AS TO FORM: Sonia R. Carvalho City Attorney By: � (-- Lisa Storck Assistant City Attorney AYES: Councilmembers NOES: Councilmembers ABSTAIN: Councilmembers NOT PRESENT: Councilmembers Miguel A. Pulido Mayor Ordinance No. NS-XXXX Page 3 of 4 75C-109 CERTIFICATE OF ATTESTATION AND ORIGINALITY I, DAISY GOMEZ, Clerk of the Council, do hereby attest to and certify that the attached Ordinance No. NS- to be the original ordinance adopted by the City Council of the City of Santa Ana on 2019 and that said ordinance was published in accordance with the Charter of the City of Santa Ana. Date: Clerk of the Council City of Santa Ana Ordinance No, NS-XXXX Page 4 of 4 75C-110 e i••—••—••'PAIRMAVEN k1 -_.._. ° i I " 4 I 1 4 £ p< Ptl F CS 1 � cs >t 1 _ SANTA CLARA AV $,Y c5 ' at g' qv C5 5 a gz�gc 1 'SP-I P. l gS I yP. s vf.tFvocO,v cI 9. nu...oaou � ct N°c �•>.•� I ulo 0 z" Z at .,cur 6 17L._-_.-_ isnt sr - v C5 -. I nt t• {y C5 1 Ct C5 Cs v ...—...... i ZONING DISTRICTS At GENENALAGRICUI.TURAL CSIA SOUTH MAIN STREET COM.IERCIAL DIST. R2 MC-FANILYRESIDENCE .8 PARKING MODIFICATION CR COMMMIM COMMERCIAL GC GOVERNM CENTER RJ IAVLMLE-FAMLY RESNENCE -OZ OVERLAYZONE CND C2 COFANNItt COMMERCIAL - MUSEUM GIST. GENERAL COMMERCIAL M1 M2 LIGFrt STRWL HEAVY NDUSTRIAL R4 RE SUBURBANAPARTMENT RESIDEW4 LESTATE PRO PLANNEORESIDUITIAL DEVELOPMENT C4 PLANNED SHOPPING CENTER O OPENSPACE SO SPECFEDEVELOPMENT -1102 HEGHTDISTRETH C5 ARTERALCOMMERCIAL P PROFESSIONAL SP SPECFICPLAN GR COMERCALRESiDENT RI SINGLE.FAMLYRESIDENCE SECTIONAL DISTRICT MAP: 4-5-9 CITY OF SANTA ANA. CALIFORNIA Exhibit: EXHIBIT 1 75C-111 75C-112 SERVICE AGREEMENT BY AND BETWEEN THE CITY OF SANTA ANA AND THE CITY OF TUSTIN REGARDING POTABLE; WATER SERVICE FOR VARIOUS PARCELS OF UNINCORPORATED REAL PROPERTY This Service Agreement ("Agreement") is entered into by and between the City of Santa Ana, a charter city and municipal corporation organized and existing under the Constitution and laws of the State of California ("Santa Ana"), and the City of Tustin, a California municipal corporation ("Tustin") (each referred to as "Party" and collectively referred to as the "Parties") on the effective date of the reorganization of "Island Parcels" involving the annexation of the "Island Parcels" to Santa Ana and detachment of same territory from the Municipal Water District of Orange County as specified in Section A below. RECITALS A. As provided by the Cortcse-Knox-Hertzberg Local Government Reorganization Act of 2000 (Gov. Code, §§ 56000 et seq.) and the Orange County Local Agency Formation Commission's ("OC LAFCO") policies and procedures, Santa Ana will submit to OC LAFCO an application to annex 57 parcels and detachment of the same parcels from the Municipal Water District of Orange County. The annexation collectively constitutes an island of unincorporated territory within Santa Ana's sphere of influence with Assessor's Parcel Numbers ("APNs") 396- 303-01 to -28, 396-304-01 to -11, 396-312-13, -14, and -15, 396-313-01 to -03, -06 to -11, and 396-314-01 to -06 ("Island Parcels") as shown on Exhibit 1. B. Santa Ana is presently without the necessary water system infrastructure to directly provide Potable Water Services to the Island Parcels, but contemplates and fully intends to ensure that the Island Parcels receive adequate Potable Water Service consistent with the level of service contemplated by Santa Ana subsequent to the Annexation, including installation and completion of all necessary water system infrastructure and performance of all customer service flmctions ("Potable Water Service") following Santa Ana's annexation of the Island Parcels, C. Tustin maintains and operates water lines and facilities that provide Potable Water Services to all developed Island Parcels. D. Santa Ana and Tustin desire to enter into this Agreement, whereby Tustin will provide Potable Water Service to the Island Parcels. Tustin will to provide water service to the Island Parcels until such time Santa Ana has completed water system infrastructure to serve the entire Island Parcels. E. This Agreement constitutes a service agreement in which "[t]wo or more public agencies where the public service to be provided is an alternative to, or substitute for, public services already being provided by an existing public service provider and where the level of service to be provided is consistent with the level of service contemplated by the existing service provider." (Gov. Code, § 56133(e)(1)). I of 7 75C-113 F. Under Government Code, section 56133 and OC LAFCO's "Policy & Procedures for the Review and/or Processing of Out -Of -Area Agreements by the Executive Officer (Gov't Code §56133)," this Agreement is not an out -of -area service agreement requiring OC LAFCO's review and approval because: (1) Santa Ana and Tustin are both public agencies; and (2) upon annexation, Santa Ana will have the exclusive authority to provide Potable Water Services to the Island Parcels. However, Santa Ana has found that such activities can be more efficiently and more conveniently performed by Tustin pursuant to this Agreement at this time. G. This Agreement will in no way adversely impact water services to current customers of Santa Ana or Tustin, will not induce growth, and will not result in the duplication of services in the territory of either city. H. This Agreement serves the public interest, economy, and general welfare. NOW, THEREFORE, in consideration of the above recitals and of the mutual covenants as well as for other good and valuable consideration, the receipt and sufficiency of which is acknowledged, the Parties agree as follows: CONSENT FOR AND PROVISION OF SERVICES 1.1. Santa Ana's Consent for Service. Except as provided in Section 1.2, Santa Ana consents to Tustin's provision of Potable Water Service to the Island Parcels, upon Santa Ana's annexation of the Island Parcels. 1.2. Following the annexation, in the event that Santa Ana has or creates the infrastructure and the capacity to provide Potable Water Service to the Island Parcels, any new development or redevelopment within the Island Parcels shall be served by Santa Ana. 1.3. Tustin's Provision of Service, 1.3.1. Provision of Service. Tustin agrees to provide Potable Water Service to the Island Parcels in a manner and at a level consistent with Tustin's provision of services to its remaining service area, subject only to a changeover as set forth in Section 2 of this Agreement. 1.3.2. Applicable Law. Tustin's provision of the Potable Water Service shall comply with applicable local, state, or federal statutes, regulations, rules, or policies. 2of7 75C-114 TERMINATION Santa Ana's Capacity for Service. If, at any time during the course of this Agreement, Santa Ana determines that it has the infrastructure and capacity to economically and conveniently provide Potable Water Service to the Island Parcels in a manner and at a level consistent with Santa Ana's service to the remainder of its service area, then Santa Ana will send written notice to Tustin and OC LAFCO of such determination. The notice shall provide reasonable terms, conditions, and times for accomplishing the changeover from Tustin to Santa Ana as the provider of Potable Water Service; provided, however, that cooperation with the notice shall be at no cost to Tustin. Tustin will work in good faith with Santa Ana to reasonably comply with the notice. This Agreement shall terminate when the changeover is accomplished. When this Agreement is terminated for any reason, any costs reasonably required to disconnect, transfer, cap, abandon, and/or otherwise cease Potable Water Service by Tustin will be reimbursed by Santa Ana within ninety (90) days of delivery of written request for such reimbursement. The manner of cessation of Tustin Potable Water Service shall be in compliance with all then -current Tustin standards and requirements. 3. EFFECTIVE DATE OF AGREEMENT The effective date of this Agreement is the date this Agreement is executed by both Parties as it appears on the Signatures page of this Agreement referred to as Effective Date. 4. SCOPE OF AGREEMENT Nothing contained in this Agreement shall be construed as representing the establishment of any precedent or the formation of any policy by Santa Ana to generally allow Tustin to provide Potable Water Service within Santa Ana's jurisdiction or by Tustin to provide Potable Water Service within Santa Ana's jurisdiction on the terms and conditions contained herein or on any terms and conditions whatsoever. 5. INDEMNIFICATION The Parties shall indemnify and hold harmless each other and their officers, employees, and agents, against tury and all claims, liabilities, expenses, attorney's fees or damages, for injury or death of any person, or damage to property, or interference with use of property ("Claims"), to the extent the Claims arise from the negligence or willful misconduct of the indemnifying Party or to the extent any Claim arises in connection with the indemnifying Party's negligent performance of this Agreement. 6. MISCELLANEOUS PROVISIONS 6.1. Changes to Agtcement. All of the terms, conditions and provisions hereof shall inure to the benefit of and be binding upon the Parties hereto and their respective successors and assigns, provided, however, that no assignment of this Agreement shall be made without the prior written consent of the Parties to the Agreement, which consent may not be unreasonably withheld, conditioned or delayed. 3of7 75C-115 6.2. Performance. Whenever performance is required of any Party hereunder, that Party shall use all due diligence to perform and take all necessary measures in good faith to perform; provided, however, that if completion of performance shall be delayed at any time by reason of acts of God, war, civil commotion, riots, strikes, picketing, or other labor disputes, or damage to work in progress by reason of fire or other casualty or cause beyond the reasonable control of a party (acts by the performing Party causing the situation to be beyond reasonable control excepted), then the time for performance as herein specified shall be appropriately extended by the amount of the delay actually so caused. 6.3. Severabihty. Invalidation of any of the provisions contained in this Agreement, or of the application thereof to any person or circumstance, by judgment or court order, shall in no way affect any of the other provisions hereof or the application thereof to any other person or circumstance and the same shall remain in frill force and effect, unless enforcement of this Agreement as so invalidated would be unreasonable or grossly inequitable under all the circurnstances or would fnistrate the purposes of this Agreement. 6.4. Form of Notice. Any notice to any Party shall be in writing and given by delivering the same to such party in person or by sending the same by registered or certified mail, return receipt requested, with postage prepaid to the party's mailing address. The respective mailing addresses of the Parties thereto are, until changed as hereinafter provided, the following: To Santa Ana: Fuad Sweiss, PE, PLS Executive Director Public Works Agency 20 Civic Center Plaza Santa Ana, Ca. 92702 With copy to: Clerk of the Council 20 Civic Center Plaza Santa Ana, Ca. 92702 To Tustin: Douglas Stack Director of Public Works/City Engineer 300 Centennial Way Tustin, Ca. 92780 To OC LAFCO: Carolyn Emery 2677 North Main St Suite 1050 Santa Ana, Ca 92705 6.5. Change of Address. Any Party may change its mailing address at anytime by giving written notice of such change to the other Party in the manner provided herein at least ten days prior to the date such change is considered effective. 4of7 75C-116 6.6. Effective Date of Notice. All notices under this Agreement shall be deemed given, received, made or communicated on the date personal delivery is effective or, if mailed, on the delivery date or attempted delivery date shown on the return receipt. 6.7. Content of Notice. Every notice (other than the giving or withholding of consent, approval, or satisfaction under this Agreement, but including requests therefore) given to a Party or other person shall comply with the following requirements. Each notice shall state: 6.7,1. The paragraph of this Agreement pursuant to which the notice is given; and 6.7.2. The period of time within which the recipient of the notice must respond or if no response is required, a statement to that effect. 6.7.3. Each request for consent or approval shall contain reasonably sufficient data or documentation to enable the recipient to make an informed decision. 6.8. Entire Agreement. This writing constitutes the entire agreement between the Parties with respect to the subject matter hereof and supersedes all oral or written representations or written agreements that may have been entered into between the Parties. This Agreement may be cancelled, changed, modified or amended in whole or in part only by a written and recorded instrument executed by the Parties (or their respective successors and assigns). 6.9. Governinpwaw. This Agreement shall be governed by the laws of the State of California. Any legal action concerning or arising out of this Agreement shall be filed in a court of the State of California having jurisdiction of the subject matter, and venue shall be in the County of Orange, State of California. 6.10. Counterparts. This Agreement may be executed by the parties in one or more counterparts, each of which when so executed and delivered shall be deemed to be an original, but all such parts shall together constitute one and the same instrument. 6.11. Section Headings. All section headings and subheadings are inserted for convenience only and will not affect any construction or interpretation of this Agreement. Signatures and OC LATCO certification on the next pages. 5 of 7 75C-117 SIGNATURES In witness thereof, the Parties here to have executed this Agreement on which is the Effective Date. Momh Day Y= CITY OF SANTA ANA, a California municipal corporation By: KRISTINE RIDGE, CITY MANAGER Attest: M DAISY GOMEZ, CITY CLERK Approved as to Fonn: CITY of TUSTIN, a California municipal corporation BY: MATHEW S. WEST, ACTING CITY MANAGER Attest: BY: ERICA N. YASUDA, CITY CLERK Approved as to Form: WOODRUFF, SPRADLIN & SMART, APC. By: SIE4 !A' fi By: S IA CARVALHO, DAVID E. KENDIG, CITY ATTORNEY CITY ATTORNEY CERTIFICATION Based upon the recitals and the terms of this Agreement, I find that Tustin's provision of Potable Water Services outside its jurisdictional boundary to the Island Parcels does not constitute a contract or agreement requiring OC LAFCO approval under Government Code section 56133. 0 CAROLYN EMERY, EXECUTIVE OFFICER OC LAFCO 6of7 75C-118 LEGEND ORANGE CO 6"11,-:"b SANTA ANA TUSTIN OC PARCELS Fry P lf'\ Ar, 396-312-15 396-312-14 396-303-13 396-303-28 396 304101 1 396-303 12 396-303-14 396-303-27 396-30402 t 1, 396-303-77 396-303-75 396-303-26 396-30C 03 �. 396-303-10 Q 396-303-16 396-303-25 396-304-04 i. 396-303-09 Z 396-303-17 396-303-24 396-309�05 W i 396-303-08 � 396-303-18 396-303-23 396-304106 rJj r 396-303-07 C 396-303-t9 396-303-22 396-304107 \ 1 396-303-06 396-303-20 396-303-21 1 396-304-08 396-303-05 1"'=D;=01110 AY io' �o'' 'So� 396-313-01 396-313-10 396-313-02 396-313-09 F- cri 396-313-08 396-312-13 U7 396-313-03 i L YG Cj 396-313-07 Z 0 396-313-11 396-313-06 G I 1 EXHIBIT 1 ASSESSOR'S PARCEL NUMBER MAP 396-304-09�. \: 396-304-10 396-304-11 396-314-01 \�\� 396-314-02 L� 396-314-03 j U. rr 396-314-04 o '�:✓ 396-314-05 Ile - it f' 396-314-06 L I 75C-120 LS 9.3.19 ORDINANCE NO. NS-XXXX AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA ANA CHANGING THE BOUNDARIES OF WARD 3 IN CONJUNCTION WITH THE PROPOSED 24.78-ACRE COUNTY ISLAND ANNEXATION GENERALLY LOCATED AT THE NORTHEAST CORNER OF SEVENTEENTH STREET AND TUSTIN AVENUE THE CITY COUNCIL OF THE CITY OF SANTA ANA DOES ORDAIN AS FOLLOWS: Section 1. The City Council of the City of Santa Ana hereby finds, determines and declares as follows: A. In accordance with Sections 101.2 and 101.4 of the Santa Ana City Charter, on May 7, 2019, the City Council of the City of Santa Ana declared its intention to change the boundaries of Ward 3 to include a 24.78-acre area of land currently located in the County of Orange which is proposed to be annexed to the City of Santa Ana. The area proposed for annexation is shown on the map attached as Exhibit 1. B. At the May 7, 2019 Council meeting, there was no opposition raised regarding the change in the boundaries for Ward 3. C. The Clerk of the Council gave notice that on September 3, 2019, at 6:45 P.M. or as soon as, possible thereafter, in the Santa Ana City Council Chambers, 22 Civic Center Plaza, Santa Ana, California, a public hearing will be held by the City Council at which time any and all persons interested in or objecting to the proposed change in ward boundaries described above may appear and be heard. Section 2. The City of Santa Ana hereby approves the change in ward boundaries for Ward 3 as shown on Exhibits 2 and 3. Section 3. In accordance with the California Environmental Quality Act (CEQA) and the State CEQA Guidelines, a categorical exemption will be filed for this project pursuant to section 15319. This Class 19 exemption applies to projects involving annexation of existing facilities and lots for exempt facilities such as public and private structures developed to the density allowed by the pre -zoning of the City. The proposed annexation area is developed to the density allowed by the current zoning or pre -zoning, with the extension of utility services having the capacity to serve only the existing facilities. EXHIBIT 7 Resolution No. 2019-xx Page 1 of 3 75C-121 LS 9.3.19 More specifically, the proposed annexation will consist of the 24.78-acre parcels of land in its entirety that includes private residential and commercial structures as well as three vacant parcels of land that are located at the southwest section of the annexation area. As the annexation area is developed to the density allowed by both the current zoning of the County and the pre -zoning designations proposed by the City, and no new utility services are proposed for the existing structures within the annexation area as part of this project, the Class 19 exemption is applicable to this project. The City Council has, as a result of its consideration and the evidence presented at the hearings on this matter, determined that, as required pursuant to CEQA, a categorical exemption adequately addresses the expected environmental impacts of this project. On the basis of this review, the City Council finds that there is no evidence from which it can be fairly argued that the project will have a significant adverse effect on the environment therefore, it is categorically exempt from the requirement for the preparation of environmental documents. Based on this analysis, a Notice of Exemption for Environmental Review No. 2018-89 will be filed for this project. Section 4. If any section, subsection, sentence, clause, phrase or portion of this ordinance for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this ordinance. The City Council of the City of Santa Ana hereby declares that it would have adopted this ordinance and each section, subsection, sentence, clause phrase or portion thereof irrespective of the fact that any one or more sections, subsections, sentences, clauses, phrases, or portions be declared invalid or unconstitutional. ADOPTED this day of 2019. APPROVED AS TO FORM: Sonia R. Carvalho, City Attorney By: ! 6'7 � Lisa Storck Assistant City Attorney Miguel A. Pulido Mayor Resolution No. 2019-xx Page 2 of 3 75C-122 LS 9.3.19 AYES: Councilmembers NOES: Councilmembers ABSTAIN: Councilmembers NOT PRESENT: Councilmembers CERTIFICATE OF ATTESTATION AND ORIGINALITY I, DAISY GOMEZ, Clerk of the Council, do hereby attest to and certify that the attached Ordinance No. NS-XXXX to be the original ordinance adopted by the City Council of the City of Santa Ana on , 2019 and that said ordinance was published in accordance with the Charter of the City of Santa Ana. Clerk of the Council City of Santa Ana Resolution No. 2019-xx Page 3 of 3 75C-123 EXHIBIT 1 r: { jaiUrw i U' v i ACV'\S Tustin. 75C-124 5/7/2019 City Council Ward Map I The City of Santa Ana EXHIBIT 2 City of Santa Ana Council Wards N Adopted January 17, 2012 0.0 0.6 1.0 1.5 Miles https:liw .santaana.org/cm/city-muncil-ward-map 7 5 V _ 12 5 H1ao Data. mionms City of Santa Ana Proposed 2020 Council Wards Originally Adopted December 4, 2018 Effective 2020 EXHIBIT 3 x Miles 75C-126 City .. Santa AnaAnnexation Report May15,2019 A—COM Deliv real. r y/r, Geliver�ct. 701127 City of Santa Ana Annexation Economics General Limiting Conditions AECOM devoted the level of effort consistent with (i) the level of diligence ordinarily exercised by competent professionals practicing in the area under the same or similar circumstances, and (ii) consistent with the time and budget available for the Services to develop the Deliverables. The Deliverables are based on estimates, assumptions, Information developed byAECOM from its independent research effort, general knowledge of the Industry, and Information provided by and consultations with Client and Client's representatives. No responsibility is assumed for inaccuracies in data provided by the Client, the Client's representatives, or any third -party data source used in preparing or presenting the Deliverables. AECOM assumes no duty to update the information contained in the Deliverables unless such additional services are separately retained pursuant to a written agreement signed by AECOM and Client. AECOM's findings represent Its professional judgment. NeltherAECOM nor Its parent corporations, nor their respective affiliates or subsidiaries ("AECOM Entities") make any warranty or guarantee, expressed or implied, with respect to any information or methods contained in or used to produce the Deliverables. 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Entitlement to rely upon the Deliverables is conditioned upon the entitled party accepting full responsibility for such use, strict compliance with this Agreement and not holding AECOM liable in any way for any impacts on the forecasts or the earnings resulting from changes in "external" factors such as changes in government policy, in the pricing of commodities and materials, changes in market conditions, price levels generally, competitive alternatives to the project, the behavior of consumers or competitors and changes in the Client's policies affecting the operation of their projects. The Deliverables may include "forward -looking statements". These statements relate to AECOM's expectations, beliefs, intentions or strategies regarding the future. These statements may be identified by the use of words like "'intend," "may," Ian,"" "project," "will," "should," "seek," and similar "anticipate; "'believe," "estimate," "expect,' y, p p � expressions. The forward -looking statements reflect AECOM's views and assumptions with respect to future events as of the date of the Deliverables and are subject to future economic conditions, and other risks and uncertainties. Actual and future results and trends could differ materially from those set forth in such statements due to various factors, including, without limitation, those discussed in the Deliverables. These factors are beyond AECOM's ability to control or predict. Accordingly, AECOM makes no warranty or representation that any of the projected values or results contained in the Deliverables will actually occur or be achieved. The Deliverables are qualified in their entirety by, and should be considered in light of, these limitations, conditions and considerations. 75C-128 AECOM City of Santa Ana Annexallon Prepared for: City of Santa Ana AECOM 401 West A Street Suite 120 San Diego, CA 92101 aecom.com Copyright © 2019 by AECOM All rights reserved. No part of this copyrighted work may be reproduced, distributed, or transmitted in any form or by any means without the prior written permission of AECOM. 75C-129 AECOM City of Santa Ana Annexation I able of Contents 1. Key Findings... 1.1 Estimated Study Area Net Annual Table 1.2: Estimated Study Area Gem Table 1.3: Estimated Study Area Roat Table 1.4: Estimated Study Area Gent 2. Methodology ............ General Fund ..................................... Property Taxes ................................... Sales Taxes ........................................ Other Taxes ........................................ Expenditures ...................................... RoadFund ......................................... Revenues................ .......................................... ..........................................................................................5 scatImpacts....................................................................................................5 it Fund Net Annual Fiscal Impact .....................................................................6 7und Net Annual Fiscal Impact.........................................................................6 it Fund Net Annual Fiscal Impact from Proposed Land Uses..........................7 .......................................................................................... 7 ........................................................................................................................ 7 .......:................. .................... ..................................... ...................................... 7 ........................................................................................................................ 8 ........................................................................................................................ 8 ........................................................................................................................ 8 ........................................................................................................................ 8 ..._............................................................................................1....................... 8 txpenaitures.................................................................................................................................................................. V Net Annual Fiscal Impact of Proposed Land Uses.........................................................................................................9 Appendix A Detailed Tables for General Fund Revenues and Expenditures ..................10 Table A: Study Area Existing Land Uses Estimated General Fund Property Tax Revenues........................................10 Table B: Study Area Existing Businesses Estimated City of Santa Ana Sales Tax Revenue ....................................... 11 Table C: Estimated Other General Fund Revenue from Annexation Population.......................................................... 11 Table D: Calculated Per Service Population Costs to General Fund...........................................................................12 75C-130 AFC;j City of Santa Ana Annexation Key Findings AECOM performed a fiscal assessment to estimate the net fiscal impacts of providing services to the area that is being proposed for annexation, referred to as the Study Area. The Study Area is roughly 25 acres in size with 49 single-family and 34 multi -family residential units, and an estimated population of 309 residents. There are 3 existing commercial properties in the Study Area with a combined 27,750 square feet of rentable space and approximately 20 businesses. The analysis focused on fiscal impacts to the following City of Santa Ana funds: • General Fund The Special Gas Tax Fund and Measure M (referred to hereafter as the Road Fund) The assessment primarily focuses on the fiscal impacts associated with the existing land uses within the Study Area. However, it is understood that two additional proposed land uses (Chick-Fil-A and In-N-Out) may locate on vacant commercial land within the Study Area so an estimated range of fiscal impact was also calculated separately to provide a more complete overall assessment of the Study Area. Based on our preliminary draft findings, AECOM estimates a General Fund surplus and a Road Fund deficit. The two additional proposed land uses are estimated to result in an increase to the fiscal surplus. Note that these findings are in draft form and are subject to change. All figures for revenues and expenditures are expressed in 2018 dollars. 1.1 Estimated Study Area Net Annual Fiscal Impacts (2018 dollars) Fund Net Fiscal Impact Existing Land Uses General Fund Road Fund $127,000 -$92,000 Total $35,000 Proposed Land Uses* General Fund $60,000 to $94,000 Existing and Proposed Land Uses $95,000 to $129,000 • It is assumed the addition of the proposed land uses would have a negligible effect on road costs and revenues. As a result no Road Fund estimates have been included. Proposed Land Use estimated net fiscal impacts are in addition to the Existing Land Use estimates. Source: AECOM Factors and assumptions utilized to arrive at these estimates were based on reviews of the City of Santa Ana Fiscal Year 18-19 Adopted Budget, Orange County Assessor and Treasurer data, Costar, U.S. Census data, and phone and email correspondence with City staff. A more detailed breakdown of methodology and assumptions is included in the body of the report along with the expanded tables in the Appendix. 75C-131 AECOM City of Santa Ana Annexation Table 1.2: Estimated Study Area General Fund Net Annual Fiscal Impact (2018 dollars)* Cost/Revenue Description Estimated Value Estimated Total Costs to the City General Fund** Sources of Revenue Property Tax Property Tax In Lieu of VLF Property Transfer Tax Sales Tax Measure X(2019-2029) Other Revenue*** Total Estimated General Fund Revi Estimated Net Fiscal General Fund from Annexation $182,000 $62,000 $30,000 $1,000 $66,000 $100,000 $50,000 Annexation $127,000 "Numbers are rounded to the nearest $1,000 throughout and may not sum. •• See Appendix Table D for General Fund cost breakdown and calculations. "* See Appendix Table C for sources and calculations included in 'Other Revenue.' Source: Orange County Treasurer -Tax Collector; City of Santa Ana, California Department of Finance; Costar; AECOM, 2018 Costs to the General Fund were first estimated on a citywide per service population basis, which consists of all residents and half of the employees. These were then adjusted to estimate the marginal and total costs of servicing the total service population of the Study Area. Conservative marginal service cost assumptions based on general fiscal impact practice are detailed in Appendix Table D. Table 1.3: Estimated Study Area Road Fund Net Annual Fiscal Impact (2018 dollars)* Estimated Cost/Revenue Description Value Estimated Total Costs for Road Maintenance $110,000 Road Fund Revenue Sources HUTA** $8,000 RMRA $5,000 Measure M $4,000 Other*** $400 Total Estimated Revenue from Annexation $18,000 Estimated Road Fund Net Fiscal Deficit from Annexation-$92,000 - Numbers are rounded throughout and may not sum. --HUTA includes HUTA 2105, 2106, 2107, 2103 •-*Other includes SBl Loan Repayment and Engineering Cost Allocation Source: City of Santa Ana Adopted Budget 2018-19, AECOM 2018 75C-132 AECOM City of Santa Ana Annexation Road Fund revenues were estimated on a citywide per capita basis and then applied to the Study Area residential population. Road costs were provided by the City of Santa Ana and consist of annual non -replacement preventive maintenance for the 1.63 lane miles of roads within the Study Area. While the General Fund and Road Fund have separate funding sources, City General Funds can be flexibly allocated to address road maintenance. As a result the estimated General Fund net fiscal surplus of the existing and proposed uses within the Study Area could feasibly be allocated to cover a portion of the estimated Road Fund net fiscal deficit. Table 1.4: Estimated Study Area General Fund Net Annual Fiscal Impact from Proposed Land Uses (2018 dollars) Cost/Revenue Description Low High Estimated Total Costs to the City General Fund $91000 $9,000 Sources of Revenue Property Tax $2,000 $4,000 Property Tax In Lieu of VLF $1,000 $2,000 Property Transfer Tax $100 $100 Sales Tax (Including Measure X) $64,000 $95,000 Other Revenue $2,000 $2,000 Total Estimated Revenue from Annexation $69,000 $103,000 Estimated Net Fiscal Surplus from Annexation $60,000 $94,000 'Low and High estimates are based on comparisons of assessed property value and estimated sales per square foot for Chic- Fil-A and In-n-Out in Santa Ana and Orange County. • See Appendix Table D for General Fund cost breakdown and calculations. -See Appendix Table C for sources and calculations included in 'Other Revenue.' Source: Orange CountyTmasurer-Tax Collector, City of Santa Ana, California Department of Finance, Costar AECOM, 201R 2. Methodology General Fund Property Taxes The total assessed value of all properties in the Study Area for the 2017 tax year was approximately $26 million, including values for both land and improvements. According to California state law, 1 % of this total value will be paid in property taxes to be allocated to various government agencies, school districts, and other funds. The Master Property Tax Transfer Agreement between the City of Santa Ana and the County of Orange dictates that 24% of property tax revenue will be allocated to the City of Santa Ana's General Fund. If a new City TRA were established that had a different allocation rate, these assumptions would have to be adapted upwards or downwards depending on the new rate. Under the assumed TRA the City of Santa Ana General Fund can anticipate an increase of approximately $62,000 in property taxes as a result of the annexation of the Study Area. Since 2004, the California State Legislature has compensated cities and counties for the state-wkte reduction in Vehicle License Fees (VLF) with a like amount of property taxes, known as Property Taxes in Lieu of VLF. This allocation increases annually in proportion to the growth in both the gross assessed property valuation and the relative population in that city or county. Taking into account the estimated population growth as a result of the annexation of the Study Area, Property Taxes in Lieu of VLF are estimated to increase by approximately $30,000. 75C-133 AECOM City of Santa Ana Annexation Property Transfer Taxes are also collected in the state of California whenever a property is sold, amounting to 550 per $1,000 of assessed value to be divided between the city and the county. Based on the assumption of a 5% annual property turnover rate, the City of Santa Ana can anticipate gathering approximately $1,400 from the sale of property. The amount of Property Transfer Tax actually received will depend on the sale of properties in a given year, which is subject to an upward or downward adjustment based on recorded transactions. (Table A) Sales Taxes The minimum statewide sales tax for California is 7.25%, and the City of Santa Ana General Fund receives 1 % of the purchase price for all sales in the city (the additional 0.5% rate levied for Measure M to fund transportation projects received by the City is accounted for in the revenues for the Road Fund). The Orange County Treasurer -Tax Collector estimates that there are approximately 27,750 square feet of rentable commercial space on 3 separate properties in the Study Area. Current occupants include food and beverage establishments, merchandise retail, professional offices, and other service providers. There are approximately 20 sales tax generating businesses in the Study Area. AECOM estimated total employees and sales per square foot of occupied commercial space based on regional trends and recent studies on business patterns (eMarketer 2018, Baker Tilly Restaurant Benchmarking 2017, AECOM 2018). In November of 2018, Santa Ana voters approved Measure X (City of Santa Ana Ordinance No. NS-2952) authorizing a citywide sales tax of 1.5% to be collected for 10 years beginning in the first quarter of 2019 (dropping to 1 % from 2029 to 2039). The revenue from this transactions and use tax will be fund general city services and address the City's structural deficit. The City of Santa Ana General Fund can anticipate an increase of approximately $166,000 in sales taxes from annexation of the Study Area. This estimate depends on actual sales for businesses and will change depending on the mix of future tenants and industries that occupy the retail and office space. (Table B) Other Taxes Other sources of revenue are expected to increase as the result of the annexation of the Study Area, including business permits, licenses and inspections, franchise fees, fines and forfeitures, and intergovernmental transfers. The increase to the City of Santa Ana's General Fund was estimated on a per service population basis and amounts to an approximate increase of $50,000. (Table C) Expenditures AECOM estimated the expenditures for services administered by the City of Santa Ana on a per service population basis and applied the costs of extending these services to the service population of the Study Area. Based on data from recent fiscal analyses in Southern California, percentages of the marginal cost burden for extending services to additional residents and employees were assigned by category. Again, it should be noted that actual marginal costs per service population can vary significantly by city and lower marginal costs would reduce overall service costs and reduce the estimated overall net fiscal deficit. The total estimated City cost to serve the Study Area is t $182,000 (Table D) Road Fund Revenues The federal government and the state of California impose direct and indirect taxes on the sale of gasoline and other fuels and the registration of motor vehicles with allocations dedicated to transportation purposes. A portion of these funds are redistributed to counties and cities in California, primarily through the Highway Users Tax Account (HUTA) and the Road Maintenance and Rehabilitation Account (RMRA). HUTA includes several sections (2105, 2106, 2107, 2103) with specific apportionments to diverse transportation related purposes and an apportionment to cities based on population. RMRA also allocates funds to state and regional projects with the remainder divided between the state highway account and local apportionments, 50% of which go to counties based on the number of registered vehicles and 50% of which go to cities based on population. Based on the estimated increase in population from the 75C-134 0.ECOM City of Santa Ana Annexation annexation of the Study Area, the City of Santa Ana Road Fund will likely receive an additional $8,000 from HUTA allocations and $5.000 from RMRA allocations. Since 1990, Orange County voters have repeatedly approved a half -cent sales tax to generate funds for the improvement of the country's transportation system, known as Measure M. The Orange County Transportation Authority (OCTA) allocates funds to cities based on a Fairshare formula based on the ratios of population, Master Plan Arterial Highways centerline miles, and their share of total taxable Orange County sales. Additional revenues generated for the City of Santa Ana Road Fund from Measure M allocations as the result of the annexation of the Study Area are estimated to be approximately $4,000. Other revenues include repayment from the SB1 Loan and an Engineering Cost Allocation, contributing an estimated $400 to the additional revenues for the city of Santa Ana Road Fund as a result of the annexation of the Study Area. Expenditures The Study Area contains approximately 1.63 lane miles. City staff estimate the annual Study Area road maintenance casts will be approximately $110,000. Net Annual Fiscal Impact of Proposed Land Uses There are two additional land uses (Chic-Fil-A and In-N-Out) that have been proposed for the currently vacant commercial lots at the intersection of Tustin Avenue and 171" St. The proposed developments, if completed, would result in additional General Fund costs and revenues, including additional service costs and property tax, sales tax, and other revenues associated with fees, licenses, and permits. AECOM estimated additional costs based on the _ additional service population of the businesses, in this Case made up entirely of new employees. Property and sales taxes were estimated based on comparisons of taxable sales and assessed property values of other Chic-Fil-A and In-N-Out Burger establishments in Santa Ana and surrounding cities. AECOM estimates an increase in the net fiscal surplus of between $60,000-$94,000 for the City of Santa Ana General Fund as the result of the annexation of the Study Area and the development of these proposed land uses. 75C-135 A Oily of Santa Ana Annexation Appendix A Detailed Tables for General Fund Revenues and Expenditures Table A: Study Area Existing Land Uses Estimated General Fund Property Tax Revenues (2018 dollars) Estimated Total Assessed Assessed Property Values Value Residential $24,630,000 Retail $1,392,000 Total Assessed Value $26,021,000 Property Transfer Tax Revenue Assumption Total Assessed Value $26,021,000 Property Transfer Tax ($0.275 per $500) $14,000 Annual Property Transfer Tax (5% of total) $1,400 Property Tax Revenue Allocation Assumption Total Improved Value $26,021,000 1% Property Tax Allocation $260,000 % of Property Tax Distributed to City of Santa Ana General Fund* 24% Net Increase in Property Tax Revenue $62,000 % of City of Santa Ana in Lieu of Vehicle License Fee (VLF)** 11.5% Net Increase of In Lieu of VLF to the City of Santa Ana $30,000 Annual Combined Property Transfer Tax and Property Tax Allocation to the City of Santa Ana $93,000 'Tax Rate is In accordance with Master Property Tax Transfer Agreement between Santa Ana and Orange County *-Tax ratio is based on per capita estimated 2018 City of Santa Ana Property Tax In Lieu of VLF revenues Source: Orange County Treasurer -Tax Collector 2018 AECOM, 2018 75C-136 AECOM City of Santa Ana Annexation Table B: Study Area Existing Businesses Estimated City of Santa Ana Sales Tax Revenue (2018 dollars) Description Value Estimated Sales Tax Collected by the Businesses'' $ 163,000 Employees 105 Total Estimated Annual Taxable Sales from On -site Employees $136,000 Local Sales Tax (including Measure X) 2.5% Estimated Annual Sales Tax Revenue by On -site Employees" $3,413 Total Sales Tax $ 166,000 -Based on estimates of sales per square foot of retail/office category "Assumes; 50%On-Site Employees spend $10 per day of work (260 days per year) Source: Orange County Treasurer -Tax Collector, Costar, AECOM, 2018 Table C: Estimated Other General Fund Revenue from Annexation Population (2018 dollars) Other General Fund Revenue Sources' Pro Rata Share" Estimated Revenue— Business Licenses $35.48 $12,800 Fees, Permits, and Other Charges Fines, Forfeitures and Penalties Intergovernmental Estimated Total of other Revenue $66.38 $24,000 $18.03 $6,500 $18.08 $6,500 137.87 S50.000 "General Fund revenue sources identified here are believed to have a reasonable relationship with population change. "Pro rata shares calculated using City of Santa Ana 2018-19 Adopted Budget and estimated 2018 population (California Department of Finance). """ Estimated Revenue = Pro Rata Share x Estimated Source: City of Santa Ana, 2018; California Department of Finance, 2018 AECOM, 2018 75C-137 City of Santa Ana Annexation Table D: Calculated Per Service Population Costs to General Fund (2018 dollars) City Cost per Burden of Cost for City of Santa Service New Service Department Ana Budget Population Population Police $130,482,534 $310.16 80% $248.12 Fire $52,129,291 $123.91 80% $99.13 Planning and Building $12,054,462 $28.65 60% $17.19 Finance and Management Services $5,894,409 $14.01 60% $8.41 City Manager's Office $6,042,104 $14.36 40% $5.74 City Attorney's Office $3,070,448 $7.30 40% $2.92 Clerk of the Council's Office $1,648,822 $3.92 40% $1.57 100 Public Works Agency $8,166,538 $19.41 % $19.41 Community Development Agency $980,107 $2.33 60% $1.40 Human Resources $1,766,698 $4.20 40% $1.68 100 Parks, Recreation, Community Services $21,173,178 $50.33 % $50.33 Bower's Museum $1,476,130 $3.51 40% $1.40 100 Transfer to Project Funds $12,306,584 $29.25 % $29.25 100 Total Cannabis Program $7,369,778 $17.52 % $17.52 Total Budgeted Expenditures $264,561,083 Total Pro Rata Cost per Service Population $504 Total Cost of New Service to Annexed Population $182,000 Source: Santa Ana FY2018-19 Adopted Budget; AECOM, 2018 75C-138 ,1,1�1'11