HomeMy WebLinkAboutMINUTES - 11122013 - SD.5RECOMMENDATION(S):
1. AUTHORIZE and APPROVE the Chair of the Board of Supervisors, or designee to execute the attached
Reorganization and Tax Revenue Allocation Agreement (“Tax Allocation Agreement”) between the City of Antioch
and County of Contra Costa;
2. AUTHORIZE and APPROVE the Chair of the Board of Supervisors, or designee, to execute the attached Joint
Exercise of Powers Agreement between the City and the County for funding infrastructure improvements, and
planning and building inspection services (“JPA”); and
3. ADOPT attached Resolution 2013/433, determining the allocation of tax revenue for the proposed Northeast
Antioch reorganization areas: Area 1 (LAFCO 07-17); Area 2B (LAFCO 12-07); and Area 2A (LAFCO 13-08 ), as
shown on the attached Reorganization Area Map.
FISCAL IMPACT:
If annexation occurs, the City will begin providing municipal services in the newly annexed areas. The purpose of the
Tax Allocation Agreement is to apportion between the City and the County, revenues generated in the Northeast
Antioch area that are needed to provide public services. The revenues that will be apportioned include property taxes,
sales and use taxes, and other revenues identified in the attached Tax Allocation Agreement. The Tax Allocation
Agreement will not be used to apportion revenues in Area 1, Area 2A or Area 2B until those areas are annexed into
the City. The Tax Allocation Agreement will not be used to apportion revenues in Area 1 or Area 2B unless and until
APPROVE OTHER
RECOMMENDATION OF CNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE
Action of Board On: 11/12/2013 APPROVED AS RECOMMENDED OTHER
Clerks Notes:
VOTE OF SUPERVISORS
AYE:John Gioia, District I Supervisor
Candace Andersen, District II
Supervisor
Mary N. Piepho, District III
Supervisor
Karen Mitchoff, District IV
Supervisor
Federal D. Glover, District V
Supervisor
Contact: RICHARD SEITHEL
925-674-7869
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: November 12, 2013
, County Administrator and Clerk of the Board of Supervisors
By: June McHuen, Deputy
cc: Auditor-Controller, County Counsel, Conservation & Development, LAFCo
SD.5
To:Board of Supervisors
From:Catherine Kutsuris, Conservation and Development Director
Date:November 12, 2013
Contra
Costa
County
Subject:PROPOSED NORTHEAST ANTIOCH ANNEXATION; CONSIDERATION OF TAX ALLOCATION
AGREEMENT, INFRASTRUCTURE FUNDING AGREEMENT AND RELATED ACTIONS
FISCAL IMPACT: (CONT'D)
both areas are annexed into the City. (100% General Fund)
Various infrastructure improvements will be required in Area 2B following annexation. The JPA provides for the
contribution of City and County funds toward the construction of Area 2B infrastructure improvements. If the
improvements are constructed, the JPA requires that the County and the City each contribute $300,000 per year
for 10 years (i.e., $3 million each) toward Area 2B infrastructure improvements. (100% General Fund)
The JPA requires that the County and the City each budget and set aside $100,000 per year for five years (i.e.
$500,000 each) from property tax revenues generated in Area 1 to pay their respective staff and consultant costs to
implement the JPA. (100% General Fund)
It has been determined that, if Area 1 annexes to the City, County planning and building inspection services will be
necessary to assist with the development of a portion of Area 1 (the “Forestar Property”). Under terms specified in
the JPA, the County will provide certain planning and building inspection services to the City. Costs of these
services will be paid by applicants for development of the Forestar Property.
BACKGROUND:
Between 2007 and 2013, the City of Antioch submitted three applications to the Contra Costa Local Agency
Formation Commission (“LAFCO”) to annex approximately 714 acres in Northeast Antioch. The three proposed
annexation areas are shown on the attached Reorganization Area Map and designated as Area 1, Area 2B and
Area 2A.
I. Description of the Areas to be Annexed
• Area 1 (LAFCO 07-17)
The City filed an application with LAFCO to annex Area 1 on August 16, 2007. Area 1 includes about 488 acres.
Approximately 234 acres are developed for industrial use. Protected habitat areas comprise 77 acres. About 170
acres are underdeveloped or vacant. Approximately 18 acres are under the San Joaquin River. Area 1 is located
both north and south of Wilbur Avenue and is bounded by the San Joaquin River to the north, Highway 160 to the
east, and the City of Antioch to the west and south. The area is located in the City of Antioch’s Sphere of
Influence. Land uses in the area are generally heavy industry, with the primary uses being electrical generating
facilities and other industrial uses.
The City is pursuing this reorganization because annexation of this area is a logical extension of the City’s
boundary, within the City’s Sphere of Influence, and identified in the City’s General Plan as a potential source of
employment opportunities. The City would also like to move forward to extend utilities and service to the area,
including sewer, water, and police services. Sewer and water are essential for this area to achieve its economic
potential.
• Area 2B (LAFCO 12-07)
The City filed an application with LAFCO to annex Area 2B on November 30, 2012. Area 2B is approximately
110 acres in size. It is located south of Wilbur Avenue and roughly centered on Viera Avenue. Area 2B contains
an estimated 110 existing residential units that were mostly built in the 1940’s and 1950’s, nearly all of which
obtain water from individual domestic wells and dispose of wastewater in individual domestic septic systems. The
area also includes limited commercial and industrial areas, a cemetery, and some lands in agricultural use (grapes).
The well and septic systems for these residential lots are regulated under County codes by the Environmental
Health Division. The majority of the residential lots in Area 2B cannot meet the current minimum setback
requirements for septic systems. Many of the homeowners in the area would likely experience difficulty in
securing permits to replace these aging septic systems.
• Area 2A (LAFCO 13-08)
The City filed an application with LAFCO to annex Area 2A on July 30, 2013. Area 2A includes about 116 acres
and is located east of Area 1, north of Wilbur Avenue, and west of State Route 160 and the Antioch Bridge. Area
2A is predominately occupied by marina, commercial, and storage uses.
II. Apportionment of Revenues under Tax Allocation Agreement
The Tax Allocation Agreement will not be used to apportion revenues in Area 1, Area 2A or Area 2B until those
areas are annexed into the City. Both Area 1 and Area 2B must be annexed into the City before the Tax Allocation
Agreement will apply to either area. If Area 2A annexes to the City before or without Area 1 and Area 2B, the
provisions of the Tax Allocation Agreement will only apply to Area 2A. If Area 1, Area 2A and Area 2B all
annex to the City, then the Tax Allocation Agreement will apply to all three areas.
In general, the Tax Allocation Agreement apportions 62% of ad-valorem property taxes to the County and 38% to
the City. This includes property taxes for state assessed merchant power plants subject to assessment under
Revenue and Taxation Code section 100.9. The City and the County will each receive 50% of all existing and
future sales and use taxes with the exception that sales taxes derived from locally voter approved ballot measures
will go to the City.
The Tax Allocation Agreement also apportions other kinds of revenues, such as gas surcharge and utility
revenues. The County will receive the first $200,000 of gas surcharge revenue generated under the Public Utilities
Code for the parcels where the NRG facility is located. The County will receive 50% of gas surcharge revenue in
excess of the first $200,000. The City will receive the remainder. The County will receive 100% of gas surcharge
revenue generated from areas outside of the NRG parcels, but within the annexation area. The County will receive
40% of the local jurisdiction (City’s) portion of property tax revenues for state assessed property subject to R&T
Code Section 100.95 (qualified power plants).
The Tax Allocation Agreement will not be in effect for the 2014/15 fiscal year. For purposes of illustration, if the
Agreement had been effective in FY 2014/2015, the approximate, estimated revenue split would have been as
follows:
Area 1 - $1,960,981 to the County, and $842,916 to the City.
Area 2B - $15,805 to the County, and $9,687 to the City.
Area2A - $20,792 to the County, and $12,744 to the City
III. Key Provisions of the Joint Exercise of Powers Agreement for Funding Infrastructure Improvements
and Providing Planning and Building Inspection Services (“JPA”)
The attached JPA includes the following key terms.
• Area 2B Infrastructure Improvements – Joint $6 Million City/County Contribution
Area 2B, also known as the Viera Avenue residential area, is lacking certain services (e.g. sewer and water). The
cost of providing this infrastructure is substantial, with estimates up to $21 million. A primary purpose of the JPA
is to develop a funding mechanism to attempt to address these issues. If the JPA is approved, the County and the
City will each contribute $3 million ($300,000 per year for a ten year period) towards the infrastructure
improvements. Assuming this area is annexed in calendar year 2014, the City’s payments will begin on July 1,
2015. The County’s payments will begin the first July following the annexation of Area 2B to the City (potentially
July 1, 2014).
The County’s only obligation regarding the Area 2B infrastructure improvements is to make these payments
towards construction costs. The City will decide if and when to make the infrastructure improvements and will
handle all construction-related activities. If the City constructs any Area 2B infrastructure improvements, equal
amounts of the City and County contributions must be expended for this purpose. If the City elects not to
construct the infrastructure improvements or construction costs are less than $6 million, the City is required to
return to the County all unspent
County contributions. If, at the end of the 10-year period, it turns out that more County funds than City funds
were used for the infrastructure improvements, the City is required to reimburse the County an amount necessary
to equalize both parties’ contributions.
• Costs of Implementing the JPA to be Paid From Area 1 Property Tax Revenues
The JPA will require ongoing monitoring by City and County staff and consultants. The JPA requires the City
and the County to each budget, set aside and reserve $100,000 per year for five years ($500,000 apiece for a total
of $1,000,000) in property tax revenues generated in Area 1 for this purpose.
• Application of JPA to Development of Forestar Property in Area 1
Area 1 includes approximately 114 acres of waterfront property known as the “Forestar Property.”
Under the JPA, the County will provide planning and building inspection services to this site after annexation to
the City. These services will be provided for five years from the date of annexation, or until certificates of
occupancy are issued, whichever comes first. The County Conservation and Development Department will collect
fees for these services directly from developers according to the County’s fee schedule. Antioch will retain
authority to issue permits and charge related fees, and adopt necessary environmental findings. This arrangement
is based on County’s experience in industrial permitting and building inspections, and greater staffing capability
than Antioch.
CONSEQUENCE OF NEGATIVE ACTION:
Northeast Antioch Reorganization will not proceed without a Tax Revenue Allocation Agreement pursuant to
California Revenue Taxation Code Section 99.
CHILDREN'S IMPACT STATEMENT:
Not Applicable
CLERK'S ADDENDUM
Speakers: Ron Bernal, City of Antioch. County and City of Antioch staff continued negotiations through to this
morning, November 12, 2013, and were able to come to an agreement. The red-line and final versions of the
agreements are attached. ACCEPTED the revised agreements; AUTHORIZED and APPROVED the Chair of
the Board of Supervisors, or designee to execute the attached Reorganization and Tax Revenue Allocation
Agreement (“Tax Allocation Agreement”) between the City of Antioch and County of Contra Costa;
AUTHORIZED and APPROVED the Chair of the Board of Supervisors, or designee, to execute the attached
Joint Exercise of Powers Agreement between the City and the County for funding infrastructure
improvements, and planning and building inspection services (“JPA”); and ADOPTED Resolution 2013/433,
determining the allocation of tax revenue for the proposed Northeast Antioch reorganization areas: Area 1
(LAFCO 07-17); Area 2B (LAFCO 12-07); and Area 2A (LAFCO 13-08 ).
ATTACHMENTS
Resolution No. 2013/433
Attachment 2 - Reorganization Area Map
Attachment 3 - Reorganization and Tax Allocation Agreement
Attachment 4 - JPA for Funding Infrastructure Improvements & Inspection Svcs