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Home My WebLink AboutBolsa Chica Lowlands Annexation Update - Study Session 1-21- 1/21/2014 Bolsa Chica Lowlands Annexation Update f�" II m� k� II III IIII � I III III II'I��'I i - v y City Council S'-udy SesS on January 21, 2014 Recap of Updated RSG Feasibility Study Dated MAY 17, 2013 Presented to City Council July 15, 2013 SUPPLEMENTAL COMMUNICATION Meeting Dace: / —o2 Agenda Item No. Sr"y iO 1 � ♦ �t a��¢.��. ��i�l wwipt 5 i �+3u�nb F 4k • �"r`�ki �f.�'s - r � ' � fN�t��'�I � �np�f - ��Il�' 3 Ry Beacham #. f"EJi - df511M '° 'S e ,r^,.�.,.� tiy. �+-•�i��,ter,' w �I F - � '�' tl °I�Ill�gt x�.s 14�I�1 min �? N� 14 Y �- 1/21/2014 Fiscal Impact Revenue: • Initial fiscal benefit of approximately $130,000 annually upon annexation — Revenue primarily(96%)from oil extraction taxes — This revenue source will eventually decrease over time Expenditures: • One-time transitional costs offset first year's benefit — Staff costs and application and processing fees total approximately$151,000 — Any additional responsibilities,e.g. trail maintenance,would be a deficit situation. ❖ No substantive changes since 2009 R5G Recap-July 2013 Annexation Alone • No direct increase in service costs — no development • Revenues from oil extraction tax may be less and will decrease over time • Essentially a break even situation RSG Recap-July 2013 3 1/21/2014 Benefits • Quicker public safety response due to closer proximity of City services (mutual aid agreements already in place) • Better protection of surrounding Huntington Beach property owners' interests • Better response to public concerns and comments — many already believe area is served by City RSG Recap-July 2013 Previously Identified Concerns • Flood control channel -ensuring completion of improvements by the District • Restoration project levees -levees are not certified;possibility of legal exposure for City • Flood Insurance -impact to City's FEMA rating • Potential for additional maintenance responsibilities -trails in lowlands and Harriett M.Wieder Regional Park,dredging in the jetty ❖No change in these factors since 2009 -always a possibility of litigation;uncertainty with respect to maintenance RSG Recap-July 2013 4 1/21/2014 January 2014 Update • Staff have been working with the:County and LAFCO to determine the necessary tasks and documentation needed to submit the annexation application to LAFCO. • As a result of those talks, some key issues have come to light. Key Issues — Harriet Wieder Regional Park • County has indicated that their preference would be for the City to take ownership of the 114 acre planned Regional Park area with as yet undefined incentives. • Current annual maintenance cost for the improved area of the park (4 acres) is $39k. • 80 acres of the 114 acre area are currently Irrevocably Offered for Dedication (IODs) from Hearthside Homes to the County. 56 of the acres have current oil leases. 5 1/21/2014 Key Issues — Harriet Wieder Regional Park cont. • County is not likely to accept the IOD parcels until they are cleaned up. • Cleanup efforts will ensue once oil activities cease (over 20 years). Oil companies will be responsible for cleanup. • There is currently an "Option to Lease Agreement" between the Bolsa Chica Conservancy and the County for property within the regional park to construct an Interpretive Center. Issues of City ownership of the property include: Other Issues — The lease agreement states that the county will accept ownership of the facility and be responsible for ongoing repair and maintenance — Measure C would apply if constructed the City is property owner • Bike Trail along the East Garden Grove Wintersberg Channel is currently maintained by the County; RSG Study indicates that the Flood Control District's preference would be for the City to assume maintenance upon annexation. • Existing Parking Lots and Trails are currently maintained through a contract with CA Department of Fish and Wildlife - City should not assume this responsibility. 6 1/21/2014 Other Issues Continued • Water quality monitoring and inspections within the area are performed by the Orange County Flood Control (OCFC) that this responsibility remain that of OCFC - City should not assume this responsibility. • Revenue ($6800) and Expenditures ($25,000) associated with oil well inspections not included in original report. REVISED SUMMARY OF REVENUES AND EXPENDITURES ``REV E II J-r: Of f. Iiii 1 ' , i' IT, 1..!OSTS-"� Property Tex $2800 Application to $4600':I il, Fired ; ***Unknowns'_ LAFCO Si ressiont up to$I115� � p iT �f per incident' ' I Oil Well Insp $6;800 Annexation' $10000 Fire Oil Vvell 1P $251i30(1 Fees i7 Fee- Iles IT Pections l , L r Ti? Utility User ' .! $140 *, Maps/Legal $60,OOd Pahce4 '„'I 111 a. ,�, — j I$ Il MlnRrll"ll III Ir,_ �_: Fees Desw nptions- Sernces'i Q I ,- I I +p y Franchise Fees' $140 StateBoard`of $3d00= Godeil != =I iIlMin'1mal Equalrzatlon Enf�rcerrrntl l jil a 'a. Oil Extraction $125000*IG =�County�i II $2,30(0 zot_ Tax Surveyor negotiatedu ' niainten�'uc��' r Local'lm' p. $ 30,0001, I RegionallParkll pla?la I`Ii p-- Plan XOl&lM r II IIII 2pd w p T TALI TOTAL $135681 ' TOTAL ONE $110,100 TO TA REVENUE' 1TIIW�IE� ON(aOIN �I �� I �o -r C05T5" — 1 {x �4df i, Ci}5TS TRIIIII 7 1/21/2014 ;Action „:.: Target Completion '- r., 1 Prepare an RCA requesting authorization to proceed with the February 4,2014 preparation of documents required for application to LAFCO 2 11me a`bid to complete the legal description March 2014 3 Conclude negotiations with County regarding Tax Sharing Agreement April 2014 4,_,:Negotiate other MOUs as necessary with,landowners to ensure Apri 2014. r ,maintenance requirements are met .5 Complete Legal Descriptions July 2014 . 6 Prepare Pre�Zoning docurrientation `�• Se"ptember.2014 7 Environmental documentation comment period begins November 2014 8 -'Hold:Planning Commissions Meetingr, February2015 i 9 Hold a public hearing with the City Council approving pre-annexation April12015, land use approvals and resolution of intent authorizing submittal of an application to LAFCO 8 LAFCO approval of City application August 2015 �frr 9 Amend Local Coastal Program Implementation Plan to reflect TBD approved annexation 8