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Home My WebLink AboutMINUTES - 05222012 - C.66RECOMMENDATION(S): APPROVE and ADOPT Resolution 2012/233 determining the allocation of property tax revenue for the proposed Alhambra Valley Annexation to the City of Martinez (LAFC 11-07) and providing for County's retention of building permit processing (and receipt of related fees) for a five year period. (100% Land Development Fund) FISCAL IMPACT: The County and the City of Martinez have agreed to use the existing Master Property Tax Agreement factors, as outlined in County Resolution 80-1373 (attachment 1), for the Alhambra Valley Annexation Area. In addition to confirming that the existing Master Property Tax Exchange Agreement factors will apply, proposed Resolution 2012/233 resolves that the County will retain the right to process building permits (and receive the related fees) for two County-approved residential developments for a 5 year period commencing with the date of annexation. It is estimated that this 5 year permit processing retention will provide the County the opportunity to collect approximately $182,430 in permit fees. APPROVE OTHER RECOMMENDATION OF CNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE Action of Board On: 05/22/2012 APPROVED AS RECOMMENDED OTHER Clerks Notes: VOTE OF SUPERVISORS AYE:John Gioia, District I Supervisor Mary N. Piepho, District III Supervisor Karen Mitchoff, District IV Supervisor Federal D. Glover, District V Supervisor ABSENT:Gayle B. Uilkema, District II Supervisor Contact: Rich Seithel, 674-7869 I hereby certify that this is a true and correct copy of an action taken and entered on the minutes of the Board of Supervisors on the date shown. ATTESTED: May 22, 2012 David Twa, County Administrator and Clerk of the Board of Supervisors By: June McHuen, Deputy cc: Bob Campbell, County Counsel, County Administrator's Office C.66 To:Board of Supervisors From:Catherine Kutsuris, Conservation and Development Director Date:May 22, 2012 Contra Costa County Subject:Alhambra Valley Tax Exchange Agreement BACKGROUND: The City of Martinez (City) filed an application (LAFC 11-07) with the Local Agency Formation Commission on June 1, 2011 to annex an unincorporated area referred to as Alhambra Valley. This area includes approximately 393 acres and is generally bounded by the City's current jurisdictional boundary to the north, detached single-family homes and undeveloped hills to the east, Alhambra Valley Road and Briones Regional Park to the south, and undeveloped hills and rangeland to the west. This area is within the City's Sphere of Influence and the County Urban Limit Line. LAFCO's April 9, 2008 "Water and Wastewater Municipal Service Review (MSR) for Central Contra Costa County" noted that the City provides service to unincorporated areas and that in order to clean up boundary issues associated with service areas, the city should annex unincorporated areas into the City where the parcels are now contiguous to the City boundary. In addition, this annexation would fulfill the terms of the recorded deferred annexation agreements that a number of these parcels carry. These deferred annexation agreements are legal documents that were executed at the time the properties requested City water service. In these cases, the City is exercising its legal right to annex these properties with deferred annexation agreements. Although the proposed annexation area contains properties that do not have agreements, the majority of properties in question are bound to deferred annexation agreements, and as such, subject to annexation into the City. Section 99 of the Revenue and Taxation Code provides that a city and county shall agree by resolution to exchange property tax revenues among themselves and any affected agencies in the event of a jurisdictional change. The City adopted Resolution Number 046-12 (attachment 2) agreeing to a property tax exchange and other negotiated terms, including: Property Tax Exchange Factors: The City and County will utilize the master property tax exchange factors outlined in County Resolution #80-1373, and; Residential Developments: The County will continue processing, for a period of up to 5 years from the effective date of annexation, the following residential developments in the Annexation Area: Subdivision SD02-8634 (23 lot development) and Subdivision SD05-8947 (7 lot development). The County has invested years of effort on these developments in reviewing and approving maps, entitlements, and conditions. The 5-year extension will allow the County to collect fees to help defray the costs of planning and processing. It is estimated that this 5 year extension will provide the County the opportunity to receive approximately $182,430 in permit and plan processing fees. CONSEQUENCE OF NEGATIVE ACTION: The City of Martinez will not be able to annex the Alhambra Valley area without a property tax exchange agreement. CHILDREN'S IMPACT STATEMENT: Not applicable. ATTACHMENTS Resolution No. 2012/233 Master Agreement 80-1373 City Resolution 046-12 RESOLUTION NO. 046-12 APPROVING PROPERTY TAX EXCHANGE AGREEMENT WITH CONTRA COSTA COUNTY FOR THE ALHAMBRA VALLEY ANNEXATION TO THE CITY OF MARTINEZ WHEREAS, Section 99 of the Revenue and Taxation Code provides that the City and Contra Costa County shall agree by resolution to exchange property tax revenues among themselves and any affected agencies in the event of a jurisdictional change; and WHEREAS, the Alhambra Valley Annexation (LAFC 11-07) involving annexation of territory to the City of Martinez is excluded from the application of the Master Property Tax Transfer Agreement, County Resolution 80-1373 adopted December 2, 1980 (“Master Agreement”) between the City and the County because the assessed value of the affected territory exceeds $10,000,000; and WHEREAS, the City of Martinez and the County have agreed that, notwithstanding the amount of the assessed value generated in the territory of the subject annexation, the Master Agreement shall apply to the annexation; and WHEREAS, the City and the County, in recognition of the time, effort, and expense that the County has invested in development projects in the proposed annexation area, have agreed that the County will retain, for a period of up to 5 years from the effective date of annexation, responsibility for processing of building permits and associated fees for subdivisions SD-8634 and SD-8947 in the annexation area; and WHEREAS, the City desires to enact the terms stated below on the basis of the City’s understanding that the County will adopt a resolution enacting the same terms and conditions of agreement as set forth by this Resolution at a meeting of the Board of Supervisors on a later date. NOW THEREFORE BE IT RESOLVED by the City Council of the City of Martinez that, (1) in accordance with Section 99 of the Revenue and Taxation Code, the property tax transfer for the affected agencies in the area of the Alhambra Valley Annexation (LAFC 11- 07) shall be in accordance with the Master Property Tax Transfer Agreement, and (2) the County will retain responsibility for processing building permits and associated fees for subdivisions SD-8634 and SD-8947 within the annexation area for a period of up to five years from the effective date of annexation; and BE IT FURTHER RESOLVED that, the enactment of this resolution is contingent upon the adoption of a resolution by the County Board of Supervisors setting forth the same terms and conditions of agreement between the City and County and shall only take effect upon the adoption of the County’s resolution enacting these same terms and conditions of agreement between the City and County. * * * * * * I HEREBY CERTIFY that the foregoing is a true and correct copy of a resolution duly adopted by the City Council of the City of Martinez at a Regular Meeting of said Council held on the 2nd day of May, 2012, by the following vote: AYES: Councilmembers Lara DeLaney, Michael Menesini and Mayor Rob Schroder NOES: Vice Mayor Mark Ross ABSENT: Councilmember Janet Kennedy RICHARD G. HERNANDEZ, CITY CLERK CITY OF MARTINEZ