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HomeMy WebLinkAboutMINUTES - 05042004 - SD.3 ............ ............................. RA CONT TO: BOARD OF SUPERVISORS COSTA FROM: Jaen Sweeten, County Administrator � COUNTY DATE: I'Vlay 4, 2004 SUBJECT: Oppose SB 1266 (Torlakson)—Mandatory Annexations SPECIFIC REQUEST(S)OR RECOMMENDATION(S) & BACKGROUND AND JUSTIFICATION RECOMMENDAT10NtS3: OPPOSE SB 1266 (Torlakson) which would establish new criteria for mandatary LAFCO approval of city annexation requests, thus contravening the County's voter-approved urban. Limit Line, as recommended by the Community Development Department Director and the County Administrator BAC1lCGROUNMM,A_SON(S)FOR RECOMI MENDATION(S) 'rhe Board of Supervisors 2004 State Legislative Platform includes the following policy position'. SUPPORT efforts to promote economic incentives.for "Smart Growth, " including infill and transit- oriented development. SB 1266 (Tortakson) is not consistent with this overall policy to encourage smart growth. It is also contrary to the purpose of-Measure C-1990: the 65/35 Centra Costa County Land Preservation Plan Ordinance. State lave currently requires LAFCOs to approve city annexations if the unincorporated territory meets certain conditions, including being `substantially surrounded." by the annexing city, the annexing city and a county boundary; or the annexing city and the Pacific Ocean. Current law doesn't apply to a similar situation where the unincorporated territory is substantially surrounded by the annexing city and another city. Also, current law does not define"substantially surrounded." CONTINUED ON ATTACHMENT: YES SIGNATURE: ... �, " i RECOMMENDATION OF COUNTY ADMINISTRATOR—RECOMMENO ON OF BO#RD COMMITTEE APPROVE —OTHER # r SIGNATURE(S): ACTION OF BOARD ON MAY 4. 2004 _ APPROVED AS RECOMMENDED OTHER X' Voted unanimously to support Senate Bill 1266 (Torlakson) if it is amended as outlined in the letter dated My 4, 2004 from Senator Tom Torlakson, and amended as proposer! by Senator Tom Torlakson on February 13, 2004. VOTE OF SUPERVISORS I HEREBY CERTIFY THAT THIS IS A X UNANIMOUS(ABSENT NCNE I TRUE AND CORRECT COPY OF AN AYES: NOES: ACTION TAKEN AND ENTERED ABSENT- ABSTAIN: ON MINUTES OF THE BOARD OF SUPERVISORS ON THE DATE SHOWN. Contact;Sara Hohn,335-1480 ATTESTED 4,, 2QLA _ - cc. CAC? JOHN SWEETEN,CLERK OF Coawnunity Development THE BOARD OF SUPERVISORS LAFCO AND COUNTY ADMINISTRATOR State Lobbyist(via CAO) a` CSAC(via CAO) UCC(via CAO) Z.,'a`� BACKGROUND/RKASON(S) FOR RECOMMENDATIONOSI: Senate Bill 11466 changes the mandatory city annexation provisions in six ways: (1) Recognizes the situation where unincorporated territory is surrounded by the annexing city and another city. (2) Requires that at least 51% of the exterior boundary of the unincorporated territory must be surrounded by the annexing city, other cities, county boundaries, or the Pacific Ocean unless LAFCO 1 9 adopts a different definition for"substantially surrounded." (3) Expands the current, unspecific requirement that the territory be"developed or developing" to include "designated for urban growth by the city's general plan." (4) Requires that sewers, fire protection, streets, and domestic water must be available from either the city or special districts. (5) Imposes a 1,000-acre limit. (6)Does not permit annexation of territory within the sphere of influence of another city, Senate Bill 1266 would undermine the Contra Costa County voter-approved Urban Limit Line(ULL)1, designed to ensure preservation of identified non-urban land uses, such agricultural, open space and other related lands, by establishing a line beyond which no urban land uses can be designated during the term of the County's General Plan and to facilitate enforcement of Measure Cs mandated land preservation standard of retaining 65 percent of the County's land area for non-urban uses. SB 1266 is legislation specifically drafted to facilitate the development of 800 acres of agricultural land into residential use by mandating that LAFCO annex this unincorporated area into the City of Brentwood. In 2000, the Contra Costa County Board of Supervisors modified the boundary of the Urban Limit Line (ULL) placing this 800-acre land area, along with approximately 15,000 acres elsewhere in the County, outside the ULL. The Board of Supervisors actions were unanimously reached after extensive study and environmental review and lengthy public hearings before the County Planning Commission and the Board of Supervisors. In I I hours of testimony before the Board of Supervisors, County residents strongly advocated for the ULL boundary changes, including those in the location that would be affected by SB 1266, The cities of Brentwood and San Ramon and several property interests unsuccessfully sued in an effort to invalidate the changes. The plaintiffs were unsuccessful in the Superior Court, and while the cities did not pursue an appeal, the private property interests who did appeal were unable to convince the appellate court to overturn the trial court decision. Since the City of Brentwood and the property interests have been unable to reverse the Board of Supervisors action in the courts, or to persuade Contra Costa LAFCO to repeal its own policy to honor the ULL, it appears they are now seeking state legislation to fundamentally alter the mandatory annexation process for unincorporated land. SB 1.266 is tailor-made to fit their specific interest to facilitate urban development on land that the County General Plan identifies and designates for non-urban agricultural use. Passage of SB, 1266 would likely set into motion the rapid annexation by other cities of similar land area that the Contra Costa County General Plan identifies and designates for non-urban use. SB 1266 would usurp the County's legitimate interest and responsibility for land use planning in unincorporated areas, which are intended for rural agricultural use, and would instead promote urban sprawl by establishing a statutory preference for growth policies of a city General Plan under the mandatory annexation process, The following are specific objections to SB 1266: 1. Existing law relating to mandatory annexation requires the unincorporated territory to be "developed or developing". It is claimed that this term is not well defined or unspecific. SB 1266 would direct LAFCO to rely on a city:s General Plan designation for an unincorporated area where it is identified for urban growth. This would preclude LAFCO from considering the county's adopted General Plan policies that designate the land area in question for a non-urban use. This change would fundamentally alter the land use planning relationship between a city and a county by giving primacy to a city's General Plan. The existing term "developed or developing" is clearly intended to apply mandatory annexation to a situation where the land has either developed or is developing. It was also intended to apply to situations where there is an island of unincorporated area surrounded by city territory, and where urban services to this island could be provided by a city. SB 1266 would expand and extend the mandatory annexation process to unincorporated land area that a City has targeted for urban growth regardless of the County's land use policies to retain non-urban uses for such land. By expanding the"developed or developing" criteria to include area designated for urban growth under a city General Plan, SB 1266 would potentially open thousands of acres of agricultural land in Contra Measure C- 1990: the 65135 Contra Costa County Land Preservation Plan Ordinance 2 Costa County to urban development. This legislation has the very real potential to set in motion the type of sprawling urban development pattern that the reforms ender the Cortese-Knox-Hertzberg Local Government Reform Act intended to curb. 2. The proposed legislation would set a 1,000-acre limit for the size of a mandatory annexation. However, there is no provision in SB 1266 to prevent a series of linked or related mandatory annexations that could total several thousand acres. 3. The cumulative impacts of a city initiated mandatory annexation decision at LAFCO, as proposed under SB 1266, are potentially quite significant. Yet, as presently drafted, SB 1266 would potentially circumvent the CEQA process which requires the disclosure of such information related to cumulative impacts of a project prior to LAFCO making the decision. If a county were to consider an amendment to its General Plan to re-designate land in the unincorporated area from an agricultural use to an urban use, the county would have to comply with CEQA requirements to disclose the potential cumulative impacts of such a decision. Cities should be held to the same standard on city initiated annexations. 4. Nkly establish a specific percentage standard or threshold to initiate a mandatory annexation? It is unclear what problem the proposed threshold of 51% is attempting to address. Current law leaves it to the local LAFCO to apply the statutory standard (ie., "substantially surrounded") based on local conditions and circumstances. It is claimed that the term "substantially surrounded" is not well defined and does not provide LAFCOs with proper guidance. Yet, no evidence has been cited of an actual problem where local LAFCOs are arbitrarily and capriciously setting a standard or threshold for substantially surrounded. Scuri v. Board of Supervisors [1982] 1.34 Cal. App. 3d 400, 407, is cited as an example of but in that case the court noted the three affected parcels were 79.8%, 82.4%, and 89.13% surrounded by a city. In this example the local LAFCO applied a reasonable and rationale range of 70-90% for the standard relating to substantially surrounded. Furthermore, LAFCOs typically review multiple issues when considering an annexation. This focus on percentage surrounded gives precedence to one of many factors in a decision that, rightly, should be judged based on the particularities of each individual annexation request. 5. The voters of Contra Costa County approved Measure C, the 1/2¢ sales tax measure, as part of a comprehensive effort to control sprawl, reduce congestion and improve the quality of life. The Urban Limit Zine is integral to that effort, and SB 1266 would violate that agreement, It would also jeopardize efforts to reauthorize Measure C. AMENDED IN SENATE APRIL 15, 2004 AMENDED IN SENATE APRIL 12, 2004 SENATE BILL No. 1266 Introduced by Senator Torlakson (Coauthor: Assembly Member Maze) February 13, 2004 An act to amend Seetieft 5637-5 Sections 56375 and 56375.3 of the Government Code, relating to annexation. LEGISLATIVE COUNSEL'S DIGEST SB 1266, as amended, Torlakson. Annexation. Imide (1) Under existing law, the local agency formation commission in each county has specified powers and duties concerning the review and approval and disapproval of proposals for changes of organization or reorganization of cities and districts within the county. However, a commission may not disapprove an annexation of contiguous territory to a city initiated by resolution of the city governing body if the commission finds that the territory meets any of a number of specified conditions. One of these conditions is that the territory is surrounded or substantially surrounded by the city or by the city and a county boundary or the Pacific Ocean, is substantially developed or developing, is not prime agricultural land, as defined, is designated for urban,growth by the general plan of the city,and is not within the sphere of influence of another city. This bill would revise that condition under which the commission may not disapprove the annexation to specify that: (4 (a) not less than 51 percent of the exterior boundary of the territory to be annexed is 97 ' 1 Sly 1266 —2— surrounded -2---- surrounded by the annexing city,by that city and a county boundary or the Pacific Ocean, or that city and another city, �2) unless the commission adopts a different definition for "substantially surrounded, " (b) the territory is either developed or designated for urban growth by the general plan of the annexing city, (4) (c) sewer service, structural fire protection service, streets and roads, and domestic water service will be available upon annexation, and{+, (d) the territory does not exceed 1,000 acres. (2) Existing law requires the commission to approve island annexations that meet certain requirements. One of those requirements is that if it does not exceed 75 acres in area that area constitutes the entire island, and that island does not constitute a part of an unincorporated area that is more than 100 acres in area. This bill would change the 75-acre requirement to 100 acres. The bill would also require that when the territory proposed to be annexed is substantially surrounded by a city and another city, the city that initiated the proposal, prior to submitting the application to the commission, shall notify the other city of its intention to initiate the annexation proposal and would specify the contents and requirements of that notification. The bill would also require the commission to consider the effect of the proposal on any urban limit. The bill would permit the commission to disapprove the proposal for annexation if the other city objects in writing. Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no. The people of the State of California do enact as follows: 1 SECTION 1. Section 56375 of the Government Code is 2 amended to read: 3 56375. The commission shall have all of the following 4 powers and duties subject to any limitations upon its jurisdiction 5 set forth in this part: 6 (a) To review and approve or disapprove with or without 7 amendment, wholly, partially, or conditionally, proposals for 8 changes of organization or reorganization, consistent with written 9 policies, procedures, and guidelines adopted by the commission. 10 The commission may initiate proposals for (1) consolidation of I 1 districts, as defined in Section 56036, (2) dissolution, (3)merger, 12 or (4) establishment of a subsidiary district, or a reorganization 97 -3— SB 1.266 1 that includes any of these changes of organization. A commission 2 shall have the authority to initiate only a (1) consolidation of 3 districts, (2) dissolution, (3) merger, (4) establishment of a 4 subsidiary district, or (5) a reorganization that includes any of 5 these changes of organization, if that change of organization or 6 reorganization is consistent with a recommendation or conclusion 7 of a study prepared pursuant to Section. 56378, 56425, or 56430 8 and the commission makes the determinations specified in 9 subdivision (b) of Section 56881. However, a commission shall 10 not have the power to disapprove an annexation to a city, initiated 1 I by resolution,of contiguous territory that the commission finds is 12 any of the following: 13 (1) The territory to be annexed meets all of the following 14 criteria: 15 16 17 (A) Surrounded or substantially surrounded by the city to 18 which the annexation is proposed, by that city and a county 19 boundary or the Pacific Ocean, or that city and another city. In the 20 absence of a standard adopted by a commission, as used in this 21 paragraph, "substantially surrounded"means that not less than 22 SI percent of the exterior boundary of the territory proposed to be 23 annexed is surrounded by the city to ,hich the annexation is 24 proposed, l?y that city and a county boundary or the Pacific Ocean, 25 or that city and another city. Nothing in this section shall preclude 26 a commission from adopting a higher standard that defines 27 "substantially surrounded. 28 (B) Is substantially developed, developing, or is designated for 29 urban growth by the general plan of the annexing city. 30 (C) Sewer service, structural fire protection service, streets and 31 reads, and domestic water service will be available to the affected 32 territory upon annexation from either the annexing city or special 33 districts. 34 (D) Is not prime agricultural land,as defined by Section 56064. 35 (F) Does not exceed 1,000 acres. 36 (F) Is not within the sphere of influence of another city. 37 (2) The territory to be annexed is located within an urban 38 service area that has been delineated and adopted by a commission, 39 is not prime agricultural land, as defined by Section 56064, and is 97 I SB 1266 —4- 1 --4- 1 designated for urban growth by the general plan of the annexing 2 city. 3 (3) An annexation or reorganization of unincorporated islands 4 meeting the requirements of Section 56375.3. 5 In the situation where the affected territory is surrounded or 6 substantially surrounded by a city and another city, the city that 7 initiated the proposal shall,prior to submitting the application to 8 the commission, notify the other city regarding its intention to 9 initiate the proposal to annex the territory. The city's notice to the 10 other city shall describe in as much detail as is feasible the effects 11 of the proposal on traffic, school populations, agriculture and 12 open-space lands, land use policies, spheres of influence, urban 13 limit lines, economic development, and affordable housing. The 14 city's notice:shall also invite the comments of the other city.As soon 15 as the executive of issues a certificate of filing for that 16 proposal pursuant to Section 56658, the executive officer shall 17 promptly convene a meeting with the representatives of the city that 18 initiated the proposal, the other city, the county, and any affected 19 districts to discuss any issues related to the proposal. 20 Notwithstanding Section 56663, the commission shall give the 21 notices and conduct the hearing pursuant to Chapter 1 22 (commencing with :Section 566-50) of fart 3. At the hearing, in 23 addition to the other factors to be considered pursuant to Section 24 56668, the commission shall consider the effect of the proposal on 25 any urban limit line. Notwithstanding any other provision of'this 26 section, the commission may disapprove that proposal for 27 annexation to the city if the other city objects in writing. 28 As a condition to the annexation of an area that is surrounded, 29 or substantially surrounded,by the city to which the annexation is 30 proposed, the commission may require, where consistent with the 31 purposes of this division, that the annexation include the entire 32 island of surrounded, or substantially surrounded, territory. 33 A commission shall not impose any conditions that would 34 directly regulate land use density or intensity, property 35 development, or subdivision requirements. When the 36 development purposes are not made known to the annexing city, 37 the annexation shall be reviewed on the basis of the adopted plans 38 and policies of the annexing city or county. A commission shall 39 require, as a condition to annexation, that a city prezone the 40 territory to be annexed or present evidence satisfactory- to the 97 -5— SB 1266 1 commission that the existing development entitlements on the 2 territory are vested or are already at buildout, and are consistent 3 with the city's general plan. However, the commission shall not 4 specify how, or in what manner, the territory shall be prezoned. 5 The decision of the commission with regard to a proposal to annex 6 territory to a city shall be based upon the general plan and 7 prezoning of the city. 8 (b) With regard to a proposal for annexation or detachment of 9 territory to, or from, a city or district or with regard to a proposal 10 for reorganization that includes annexation or detachment, to 1.1 determine whether territory proposed for annexation or 12 detachment, as described in its resolution approving the 13 annexation, detachment, or reorganization, is inhabited or 14 uninhabited. 15 (c) With regard to a proposal for consolidation of two or more 16 cities or districts, to determine which city or district shall be the 17 consolidated, successor city or district. 18 (d) To approve the annexation of unincorporated, 1.9 noncontiguous territory, subject to the limitations of Section 20 56742, located in the same county as that in which the city is 21 located, and that is owned by a city and used for municipal 22 purposes and to authorize the annexation of the territory without 23 notice and hearing. 24 (e) To approve the annexation of unincorporated territory 25 consistent with the planned and probable use of the property based 26 upon the review of general plan and prezoning designations. No 27 subsequent change may be made to the general plan for the 28 annexed territory or zoning that is not in conformance to the 29 prezoning designations for a period of two years after the 30 completion of the annexation, unless the legislative body for the 31 city males a finding at a public hearing that a substantial change 32 has occurred in circumstances that necessitate a departure from the 33 prezoning in the application to the commission. 34 (f) With respect to the incorporation of a new city or the 35 formation of a new special district, to determine the number of 36 registered voters residing within the proposed city or special 37 district or, for a landowner-voter special district, the number of 38 owners of land and the assessed value of their land within the 39 territory proposed to be included in the new special district. The 40 number of registered voters shall be calculated as of the time of the 97 i SB 1266 —6- 1 6--- 1 last report of voter registration by the county elections official to 2 the Secretary of State prior to the date the first signature was 3 affixed to the petition. The executive officer shall notify the 4 petitioners of the number of registered voters resulting from this 5 calculation.. The assessed value of the land within the territory 6 proposed to be included in a new landowner-voter special district 7 shall be calculated as shown on the last equalized assessment roll. 8 (g) To adopt written.procedures for the evaluation of proposals, 9 including written definitions not inconsistent with existing state 10 law. The commission may adapt standards for any of the factors ll enumerated in Section 56668. Any standards adapted by the 12 commission shall be written. 13 (h) To adopt standards and procedures for the evaluation of 14 service plans submitted pursuant to Section 56653 and the 15 initiation of a change of organization or reorganization pursuant 16 to subdivision(a). 17 (i) To make and enforce regulations for the orderly and fair 18 conduct of hearings by the commission. 19 0) To incur usual and necessary expenses for the 20 accomplishment of its functions. 21 (k) To appoint and assign staff personnel and to employ or 22 contract for professional or consulting services to carry out and 23 effect the functions of the commission.. 24 (1) To review the boundaries of the territory involved in any 25 proposal with respect to the definiteness and certainty of those 26 boundaries, the nonconformance of proposed boundaries with 27 lines of assessment or ownership, and other similar matters 28 affecting the proposed boundaries. 29 (in) To waive the restrictions of Section 56744 if it finds that 30 the application of the restrictions would be detrimental to the 31 orderly development of the community and that the area that 32 would be enclosed by the annexation or incorporation is so located 33 that it cannot reasonably be annexed to another city or 34 incorporated as a new city. 35 (n) To waive the application of Section 25210.90 or Section 36 22613 of the Streets and Highways Code if it finds the application 37 would deprive an area of a service needed to ensure the health, 38 safety,or welfare of the residents of the area and if it finds that the 39 waiver would not affect the ability of a city to provide any service. 40 However, within 60 days of the inclusion of the territory within the 97 -7— SB 1266 1 city, the legislative body may adopt a resolution nullifying the 2 waiver. 3 (o) If the proposal includes the incorporation of a city, as 4 defined in Section 56043, or the formation of a district, as defined 5 in Section 2215 of the Revenue and Taxation Code, the 6 commission shall determine the property tax revenue to be 7 exchanged by the affected local agencies pursuant to Section 8 56810. 9 (p) To authorize a city or district to provide new or extended 10 services outside its jurisdictional boundaries pursuant to Section 11 56133. 12 (q) To enter into an agreement with the commission for an 13 adjoining county for the purpose of determining procedures for the 14 consideration of proposals that may affect the adjoining;county or 15 where the jurisdiction of an affected agency crosses the boundary 16 of the adjoining county. 17 S C Z. Section 56375.3 oj'the Government Fade is amended 18 to read: 19 56375.3. (a) In addition to those powers enumerated in 20 Section 56375, a commission shall do either of the following: 21 (1) Approve, after notice and hearing, the annexation to a city, 22 and waive protest proceedings pursuant to Part 4 (commencing 23 with Section 57000) entirely, if all of the following; are true: 24 (A) The annexation is initiated on or after January 1, 2000,anti 25 before January 1, 2007. 26 (B) The annexation is proposed by resolution adopted by the 27 affected city. 28 (C) The commission finds that the territory contained in the 29 annexation proposal meets all of the requirements set forth in 30 subdivision (b). 31 (2) Approve, after notice and hearing, the annexation to a city, 32 subject to subdivision(a)of Section 57080, if all of the following 33 are true: 34 (A) The annexation is initiated on or after January 1, 2007. 35 (B) The annexation. is proposed by resolution adopted by the 36 affected city. 37 (C) The commission. finds that the territory contained in the 38 annexation proposal meets all of the requirements set forth in 39 subdivision (b). 97 i SB 1266 —8- 1 8- 1 (b) Subdivision (a) applies to territory that meets all of the 2 following requirements: 3 (1) It does not exceed=7-S 100 acres in area,that area constitutes 4 the entire island, and that island does not constitute a part of an 5 unincorporated area that is more than 100 acres in area. 6 (2) The territory constitutes an entire unincorporated island 3 located within the limits of a city, or constitutes a reorganization 8 containing a number of individual unincorporated islands. 9 (3) It is surrounded in either of the following ways: 10 (A) Surrounded, or substantially surrounded, by the city to I I which annexation is proposed or by the city and a county boundary 12 or the Pacific Ocean. 13 (B) Surrounded by the city to which annexation is proposed 14 and adjacent cities. 15 (C) This subdivision shall not be construed to apply to any 16 unincorporated island within a city that is a gated community 17 where services are currently provided by a community services 18 district. 19 (D) Notwithstanding any other provision of law, at the option 20 of either the city or the county, a separate property tax transfer 21 agreement may be agreed to between a city and a county pursuant 22 to Section 99 of the Revenue and Taxation Code regarding an 23 annexation subject to this subdivision without affecting any 24 existing master tax sharing a&geement between the city and county. 25 (4) It is substantially developed or developing. The finding 26 required by this subparagraph shall be based upon one or more 27 factors, including, but not limited to, any of the following factors: 28 (A) The availability of public utility services. 29 (B) The presence of public improvements. 30 (C) The presence of physical improvements upon the parcel or 31 parcels within the area. 32 (5) It is not prime agricultural land, as defined by Section 33 56064. 34 (6) It will benefit from the annexation or is receiving benefits 35 from the annexing city. 36 (c) Notwithstanding any other provision of this subdivision, 37 this subdivision shall not apply to all or any part of that portion of 38 the development project area referenced in subdivision (e) of 39 Section 33492.41 of the Health and Safety Mode that as of January 40 1, 2000,meets all of the following requirements: 97 -9— SB 12661 1 (1) Is unincorporated territory. 2 (2) Contains at least 100 acres. 3 (3) Is surrounded or substantially surrounded by incorporated 4 territory. 5 (4) Contains at least 100 acres zoned for commercial or 6 industrial uses or is designated on the applicable county general 7 plan for commercial or industrial uses. 8 SEC. 3. In enacting Section I of this act to amend Section 9 56375 of the Government Code, the Legislaturefands and declarer 10 that there is no change to the requirement in Section 56375.5 that II requires changes of organization or reorganizations to be 12 consistent with the spheres of influence of the local agencies 13 affected by those proposals, and no changes to the requirements of 14 the California Environmental Quality Act (Division 13 15 (commencing with Section 21000) of the Public Resources Code). 0 97 S$ 1266 Assembly Bill - Status Page 1 of 1 CURRENT BILL STATUS MEASURE : S.B. No. 1-266 AUTHOR(S) . Torlakson (Coauthor: Assembly Member Maze) . TOPIC . Annexation.. HOUSE LOCATION SEN +LAST AMENDED DATE 04/15/2004 TYPE OF BILL : Active Non-Urgency Non-Appropriations Majority Vote Required Nor.-State-Mandated Local Program Non-Fiscal Non-Tax Lewy LAST HIST. ACT. DATE: 04/15/2004 LAST HIST. ACTION From committee with author's amendments. Read second time. Amended. Re-referred to committee. COMM. LOCATION SEN LOCAL GOVERNMENT HEARING DATE 05/05/2004 TITLE An act to amend Sections 56375 and 56375.3 of the Government Code, relating to annexation. http://www.leginfo.ca. ov/pub/bill/sen/sb 1251-1300/sb 1266 bili 20040423 status.htini 4/28/04 AMENDMENTS To SENATE BILL 1266 Cvy�e. r A AS AMENDED IN SENATE APRIL 15, 2004 Amendment 1 On page 4, line 8, after "city" insert: and the county Amendment 2 On page 4, line 10, after "city„ insert: and the county Amendment 3 On page 4, lines 12 and 13, strike out "limit lines, " and insert: growth boundaries Amendment 4 Can page 4, line 14, strike out "city. As soon" strike out lines 15 to 19, inclusive, and insert: city and the county. Upon submission of the proposal to the executive officer, the executive officer shall convene a meeting to discuss any issues related to the proposal and shall invite representatives of the city that initiated the proposal, the other city, the county, and any affected districts. This meeting shall take place no later than 21 days subsequent to the submission of the proposal to the executive officer. The executive officer shall not issue a certificate of filing pursuant to Section 56658 prior to this meeting. Amendment 5 on page 4, line 25, strike out "limit line. " and insert: growth boundary. Amendment 6 On page 4, line 27, after the period, insert: 2 Notwithstanding any other provision of this section, the commission shall not approve more than one annexation of affected territory that is surrounded or substantially surrounded by a city and another city. For the purposes of this section, territory shall not be deemed to be surrounded or substantially surrounded by a city and another city because of a previous annexation of territory that was surrounded or substantially surrounded by a city and another city and that was approved pursuant to this section. Amendment 7 On page 8, line 3, strike out "100" and insert: 150 Amendment 8 On page 8, line 3, after the comma, insert: and Amendment 9 On page 8, strike out lines 4 and 5, and insert: the entire island. Amendment 10 On page 9, strike out lines 10 to 15, inclusive, and insert: that there is no change to: (a) The requirement in Section 56375. 5 that requires changes of organization or reorganizations to be consistent with the spheres of influence of the local agencies affected by those proposals. (b) The requirements of the California Environment Quality Act (Division 13 (commencing with Section 21000 ) of the Public Resources Code. (c) The requirement of Section 99 of the Revenue and Taxation Code that requires an exchange of property tax revenues. 0 - Senate Lotal Government Committee April 27,2004 AMENDED IN SENATE APRIIL 29,2004 AMENDED IN SENATE APRIL 15,2004 AMENDED IN SENATE APIA:, 12,2404 SENATE BILL No. 1266 Introduced by Senator` orlakson (Coauthor:Assembly Member Maze) February 13,2004 An act to amend 56375.3 of the Government Cade,relating to annexation. r.Wrsr AME COUwsWs DIOESr SE 1256, as amended, Torlakson.. Annexation. (1) Under existing law, the local agency formation commission in each county has specified powers and duties concerning the review and approval and disapproval of proposals for changes of organization or reorganization of cities and districts within the county. However, a commission may not disapprove an annexation of contiguous territory to a city initiated by resolution of the city governing 'body if the commission finds that the territory meets any of a number of specified conditions.One of these conditions is that the territory is sunuunded or substantially surrounded by the city or by the city and a county boundary or the Pacific Ocean, is substantially developed or developing,is not prime agricultural laird,as defined,is designated for urban growth by the general plan of city,and is not within the sphere of influence of another city. This bill would revise that condition under which the commission may riot disapprove the annexation to specify that.(a)not less than 51 percent of the exterior boundary of the territory to be annexed is 9G 169<d 101tElf d £ZZ-1 88ZD ZZE 9t8 33111MOO 1N31N A00 1dOO1 LVN3S-01a SB 1266 —2— surrounded ---2-- surrounded by the annexing city,by that city and a county boundary or the Pacific Ocean,or that city and another city,unless the commission adopts a different definition for "substantially surrounded," (b) the territory is either developed or designated for urban growth by the general plan of the annexing city, (c) sewer service, structural fire protection service,streets and roads,and domestic water service will be available upon annexation,and(d)the territory does not exceed 1,000 acres. (2) Existing law requires the commission to approve island annexations that meet certain.requirements. One of those requirements is that if;it does not exceed 75 acres in area that area constitutes the entire island, and that island does not constitute a part of an unincorporated area that is more than 100 acres in area. This bill would change the 75-acre requitement to 400150 acres and delete the moriction that the island does not constitute a part of an unincorporated territory that is more than 100 acres in area. The bill would also require that when the territory proposed to be annexed is substantially surrounded by a city and another city,the city that initiated the proposal, prior to submitting the application to the commission, shall notify the other city of its intention to initiate the annexation proposal and would specify the contents and requirements of that notification.The bill would also require the commission to consider the effect of the proposal on any urban-limit growth boundary. The bill would permit the commission to disapprove the proposal for annexation if the other city objects in writing. Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no. The people of the State of California do enact as follows: Z ended to read: 3 5 The commission shall have all e following 4 powers an ` subject to any litni ' s upon its jurisdiction 5 set forth in this p s4-"ke_ 6 (a) To review a or disapprove with or without 7 amendment, y, partially, o itionally, proposals for 8 chang organization or reorganization,c ' gent with written 9 les,procedures, and guidelines adopted by the ssion. f 96 189-1 OIO/ZOO'd NZ-1 8820 US Vs 3311MA00 IMNUA00 1V001 31VN3S-WJJ ��t+5 8O YOOZ-�O-h�W -3— SB 1266 2 0 (4) establishment of a subsidiary district, or a reorganiz " n 3 the ludes any of these changes of organization.A commi ion 4 steal ave the authority to initiate only a (1) consolida ' n of 5 distri (2) dissolution, (3) merge, (4) establislun t of a 6 subs%di district, or (5) a reorganization that incl any of 7 these c ges of organization, if that change of org tion or 8 reorganize n is consistent with a recommendation conclusion 9 of a'study p pared pursuant to Section 56378, 5 25, or 56430 10 and time co ssion makes the deterrninatio specified in 11 subdivision (b) f Section-568'81. However, a ommission shall 12 not have the pow to disapprove an annexa to a city,initiated. 13 by resolution,of tiguous territory that commission finds is 14 any of the fallowing. 15 (1) The territory be annexed ets all of the following 16 criteria: 17 (A.) Surrounded or s stantiall surrounded by the city to 18 which the-amexatioze is epos , by that city and a county 19 boundary or the Pacific Oce that city and another city.Ju the 20 absence of a standard adopte y a commission, as used in this 21 paragraphs, "substantially su ded"means that not less than..51 22 percent of the exterior bo dary the territory proposed to be 23 annexed is surrounded the ci to which the annexation is 24 proposed,by that city a county bo defy or the Pacific Ocean, 25 or that city and snot city.Nothing ' section shall preclude 26 a commission fro adapting a highs standard that defines 27 "substantially s ounded." 28 (13) Is subs lly developed,develonin or is designated for 29 urban growth y the general plan of the anise ing city. 30 (C) Sew service,structural fie protection ice,streets and 31 roads,and omestic water service:will be availab to the affected 32 territrary n annexation from either the anne city or special 33 district 34 (D s not prime agricultinal laud,as defined by 'on.56064. 35 (` Does not exceed 1,000 acres. 36 Is not within the sphere of influence of another c 37 2) The territory to be annexed is located within an an 38 ice srea that has been delineated and adopted by a cornrni on, 39 96 289-1 0[0/900'd eta-1 8820 229 ata 331iINN5 1NBANHAOS 1V301 31YO-Mij SB 1266 —4— U; -4-.._ 1 2 c 3 An annexation or reorganization of unincorporated isl 4 tnee ' g the requirements of Section 56375.3. 5 b a situation where the affected territory is surruu ed or 6 subst 'ally surrounded by a. city and another city, the ity that 7 initiated a proposal shall,prior to submitting the ap cation to 8 the co sion,notify the other city and the county r garding its 9 intention t initiate the proposal,to annex the terrrit The city's 10 notice to the Cher city and the county shall desc in as much 11 detail as is fe ible the effects of the proposal traffic, school 12 populations, ag 'culture and open-space lands and use policies, 13 spheres of infl nce, urban --mea- wth boundaries, 14 econornmuc develop ent,and affordable hou . g.The city's notice 15 shall also invite the ominents of the othems« _e�-as-tke 16 17 18 19 20 . city and the county, 21 Upon submission of the prop l to the executive officer, the �' ! Gl�� 22 executive officer shall conven meeting to discuss any issues 23 related to the proposal and s 11i vite representatives of the city 24 that initiated the proposal, a of r city, the county, and any 25 affected districts. This me ting shal lte place no later than 21 26 days subsequent to the mission oft mensal to the executive 27 officer The executive icer shall not ' e a certificate offiling 28 pursuant to Section S t55S prior to this M , Notwithstand"usg 29 Section 56663,the . sign shall give th notices and conduct 30 the hearing pars t to Chapter 1 (coram e ing with Section 31 56650) of Part 3 At the hearing,in addition to a other factors to 32 be considered ursuant to Section 56668, the cremission shall 33 consider the ffect of the proposal on any urban ' . growth 34 boundary, otwithstanding any other provision of section,the 35 commis ' may disapprove that proposal for anne tion to the 36 city if a other city objects in writing.Notwithstand, any other 37 prov` ion of this section, the,cwminission shall not aper ve more 38 tha one annexation of affected territory tha; is surrou dor 39 si stantially surrounded by a city and another city. F the 40 , be ss 169-� Ot MO'd 222-1 98ZO US 918 3311lWV100 1N3ANN3AO8 1VOOI 31VN3S_wOJd weks:aO 1tOOZ- -Keay -5— SB 1266 1 2 b arse of`a previous annexation of tett itory that was surmund 3 or stantially surrounded by a city and another city and that as 4 app ved pursuant to this section. 5 As condition to the annexation of an area that is s'urrro ded, 6 or subs tially surrounded,by the city to which the ann tion is 7 proposed, a commission may require,where cdnsisto with the 8 purposes'o tlai.s division, that the annexation inclu "Ie entire 9 island of s ended, or substantially surrounded, 'tory. 10 A commis; n shall not impose any conditio that would 11 directly regula land use density or int ,that 12 development, o subdivision n quiremeWhen the 13 development purpo are net made known t alae annexing city.: 14 the dnnexation shall reviewed on the Basi_ of the adopted plans 15 and policies of the arm g city or conn A commission shall 16 require, as a condition annexation, , at a city prezone the 17 territory to be annexed o present ev' cc satisfactory to the 18 commission that the exis develo ent entitlements on the 19 territory are vested or are dy a. uildout, and are consistent .1 Owl- 20 with the city's general plan. w er, the commission shell not 21 specify how: or in what manner a territory shall be prezoned. 22 The decision of the comrnissi regard to a proposal to annex 23 territory to a city shall be ase upon the general plan and 24 prezoning of the city. 25 (b) With regard to;a p oral for exation or detachment of 26 territory to,or horn,a c' or district or ith regard to a proposal 27 for reorganization includes annexa n or detachment, to 28 determine whether territory proposed or annexation or 29 detachment, as scribed in its resole n approving the 30 annexation, de hrrnent, or reorganization, is inhabited or 31 unithabited. 32 (c) With r aid to a proposal for consolidation f two or more 33 cities or dis cts, to determine which city or distri shall be the 34 consolida successor city or district. 35 (d) T approve the annexation of uninc rated, 36 nonco crus territory, subject to for limitations of ection 37 567 , located in the carne county as that in which the ` is 38 low ed, and that is owned by a city and used for muni c al 39 p uses and to authorize the annexation of the territory witho 40 96 189-1 O101500'd HZZ-1 8HZ0 US US 3311lMOO 1NBANN3AOJ 1V001 31VN35-tuojd weV9,80 tr00Z-t'0-xap 5$ 1266 —6- 2 ....6- 2 c sistent with the planned and probable use of the property bas 3 upo the review of general plan and prezoning designations "o 4 subse cent change may be made to the general plan f the 5 a=nnex territory or, zoning that is not in conformance o the 6 prezo ' design=ations for a period of two years er the 7 completi of the annexation,unless the legislative y for the 8 city makes funding at a public.hearing that a subs tial change 9 has occurr 'n circumstances that necessitate a dep from the 10 prezoning in a application to the com=missio=n. 11 (f) With res ect to the incorporation of a ew city or the 12 formation of a n special district, to det a the number of 13 registered voters siding within the prop ed city or special 14 district or, for a Ian owner-voter special strict, the number of 15 owners of land and a assessed value their land within the 16 territory proposed to b included in the ew special district. The 17 number of registered vot shall be ca ated as of the time of the 18 Iast report of voter regis 'on by county elections official to 19 the Secretary of State pri to tin da=te the first signature was 20 affixed to the petition. The x utive officer shall notify the 21 petitioners of the number of re stared voters resulting from this 7C , .... 22 calculation. The assessed va e f the land within the territory 23 proposed to be incl=uded in iewdowner:voter special district 24 shall be calculated as sho on the I t equalized assessment roll. 25 (g) To a=dopt written p ed.ures for evaluation of proposals, 26 including written del' ions n=ot ianco ' tent with existing state 27 law. The ccmrnissio ay adopt standa for any of the factors 28 enumerated. in Sec on 56668. Any star ds adopted by the 29 commission shall a written. 30 (h) To adopt opt and procedures for e evaluation of 31 service plans u witted pursuant to Section 6653 and the 32 in=itiation of change of organization or reorgan' ion pursuant 33 to subdivis' n (a). 34 (i) To ake and enforce regulations for the order and fair 35 conduct fhearings by the commission. 36 6) o incur usual and necessary expenses f the 37 acco plishmcnt of its fannctions. 38 To appoint and assign staff''personnel and to emplo or 39 c tract for professional or consulting services to carry out 44 dlf�et the 96 i 185- Qftli9ti0 d EZZ-1 8820 ZZE Ole 331i1NA00 1NIN33A09 1Y001 31YN3s-+ojwe 3 55:E0 tiGOZ-VB-AeyY .......................... ........................................................ ... -7— Sly 1266 1 2 csal with respect to the definiteness and certainty of se 3 bo daries, the nonconformance of proposed bouii ar' , 'th 4 lines f assessment or ownership, and other similar attters 5 affec the proposed boundaries. 6 (in) waive the restrictions of Section 56744 if finds that ` e ow-- 7 the applic 'on of the restrictions would be de ental to the 8 orderly dev oprnennt of the community and t ° the area that 9 would be enc by the ati excation or ineorp u is so located 10 that it carrot reasonably be annexed t another city or 11 incorporated as a ew city. 12 (n) To waive theapplication of Seccti 25210.90 or Section 13 22613 of the Streets Highways Co if it finds the application 14 would deprive ars area f a service tided to ensure the health, 15 safety,or welfare of the dents o e area and if it finds that the 16 waiver would not affect the ili df a city to provide any service. 17 However,within 60 days of dr Iusion of the territory within the 18 city, the legislative body rn dopt a resolution nullifying the 19 waiver. 20 (o) If the proposal i hides th incorporation of a city, as 21 defined in Section 560 ,or the f on of district,as defined 22 in Section 2215 the revenue d Taxation Code, the 23 commission shat determine the prope tax revenue to be 24 exchanged by a affected local agencies ursuant to Section 25 56810. 26 (p) To a orae a city or district to provide w or extended 27 services o ide its jurisdictional boundaries purl t to Section 28 56133. 29 (q) o eroer into an agreement with the commis for an 30 adjo' i g county for the purpose of determining procedur forthe 31 co ideration.of proposals that may affect the adjoining co or 32 ere the jurisdiction of an affected agency crosses the brnm 33 34 -SEC—gr Section 56375.3 of"the Government Code is mended 35 to read: C+rlON 1, 36 56:375.3. (a) .1n addition to those powers enumerated in 37 Section 56375, a commission shall old either of the following: 38 (1) Approve,after notice and Dearing,the annexation to a city, 39 and'waive protest proceedings pursuant to Part 4 (commencing 40 with Section 57000) entirely,if all of the following are true. 9s I 1 183-1 010/1OO'd UN BUD ZZE M 3311M00 1N 'iMMOD 1V001 31MS-sojd HILISS-80 tOOZ-tQ-AIA SB 1266 ..-. .._. 1 (A) The annexation is initiated on or after January 1,2000,and 2 before January 1,2007. 3 (B) The annexation is proposed by resolution adopted by the 4 affected city. 5 (C) The commission finds that the territory contained in the 6 annexation proposal meets all of the requirements set forth in 7 subdivision (b). 8 (2) Approve, after notice and hearing,the annexation to a city, 9 subject to subdivision(a)of Section 57080,if all of the following 10 are true. 11 (A.) The annexation is initiated on or after.January 1, 2007. 12 (B) The annexation is proposed by resolution adopted by the 13 affected city. 14 (C) The commission finds that the territory contained in the 15 annexation proposal meets all of the requirements set forth in 16 subdivision(b). 17 (b) Subdivision (a) applies to territory that meets all of the 18 following requirements; 19 (1) it does not exceed -150 acres in area, and that area 210 constitute , 31 pe&t-e se 1—gaind L 4i+'is tiet]1U }Z[Titi LTiH,if iKl 0 iteress 22 the entire island. 23 (2) The territory constitutes an entire unincorporated island. 24 located within the limits of a city, or constitutes a reorganization 25 containing a number of individual unincorporated islands. 25 (3) It is surrounded in either of the following ways: 27 (A) Suawtmded, or substantially surrounded, by the city to 28 which annexation is proposed or by the city and a county boundary 29 or the pacific Ocean, 30 (B) Surrounded by the city to which annexations is proposed 31 and adjacent cities, 32 (C) This subdivision shall not be construed to apply to any 33 unincorporated island within a city that is a gated community 34 where services are currently provided by a community services 35 district 36 (D) Notwithstanding any other provision of taw, at the option 37 of either the city or the county, a separate property tax transfer 38 agreement may be agreed to between a city and a county pursuant 39 to Section 99 of the Revenue and Taxation Code regarding an 96 (rW M,n jt$ 0n 1B£-d Old/BSD"d £ZZ-1 96Z� Zt£ 91B 333.tiWWO� 1N�YNb3A09 1d�0'} 31�'N35-woad ��9£�BO �C1QZ-pC_xeW -9— SB 1266 1 annexation subject to this subdivision without affecting any 2 existing master tax sharing agreement between the city and county. 3 (4) It is substantially developed or developing. The finding 4 required by this subparagraph shall be based upon one or more 5 factors,including,but not limited to,any of the followitig factors: 6 (A) The availability of public utility services. 7 (B) The presence of public improvements. 8 (C) The presence of physical improvements upon the parcel or 9 parcels within the area. 10 (5) It is not prime agricultural land, as defined by Section 11 56064. 12 (6) It will benefit.from the annexation or is receiving benefits 13 from the annexing city. 14 (c) Notwithstanding any ether provision of this subdivision, 15 this subdivision shall not apply to all or any part of that portion of 16 the development project area referenced in. subdivision (e) of 17 Section 33492.41 of the Health and Safety Code that as of January 18 1,2000,meets all of the following requirements: 19 (1) Is unincorporated territory. 20 (2) Contains at least 100 acres. 21 (3) .Is surrounded or substantially surrounded by incorporated 22 territory. 23 (4) Contains at least 100 acres zoned for commercial or 24 industrial uses or is designated on the applicable county general 25 planfor commercial or industrial uses. 26 27 5;65A_9_ ofihe Government Code,the Legislature finds and ares 28 'Uh-0 I'm --eh Imse to the feqtt�emew jA ee-1-- - 45.5 that 29 erg&niftfieft be 30 31 tele PMr rem! 32 the 94ifftf 5 ke, 33 34 that there is no ch �ent any of the faX 35 (a)insetzentuwi; Section 56375.5 o Government 36 Code es changes of organization or reo tions to 37 be c' th the sphere,:of'inftuence of the Zocrxl its 38 9s 163-1 010t800'd NZ-d. 8820 US sis 33111MOO 1NMNS3A00 1Y001 31YN3S-waft a�33 80 1100���0.�telry SH 1266 1 2 Ac7t(r�D—ITV isron ncing with Section 2100WPublic ,. 3 Resources Code. (c) The o ectian 99 of fhe nd Taxation 5 d 96 E� I ass- oiaiata d €tZ—� esan aa€ eta 33111Wd'tflfl 1N lN�3A09 1Vflfl1 31dN3s-mo1� ass sa aaa— a-�� ............ CAPITOL OFFICE DISTRICT OFFICE STATE CAPITOL, ROOM 5061 2801 CONCCRD BOULEVARD SACRAMENTO,CA 95814 y� y}-yy g� CONCORD.CA 945?9 TEL(916)445-6083 V-41ifarnia � atr Sron to TEL(925)602-6593 Fax(946)445-2527 j -j� +*li✓� Fax 1925)502-6598 JOINT GOVERNMENT CENTER SENATOR 420 WEST 3RD STREET ANTIOCH'CA 94509 STANDING COMMITTEE -f� �r �A OM 1 ORLA SON TEL(925)754-7464 LOCAL GOVER'Jt� NT [�. Fax(925)778-5174 CHAR SEVENTH SENATE DISTRICT WEST COUNTY SATELLITE OFFICE SELECT COMMITTEE 1 1 f CIVIC DRIVE BAY AREA INFRASTRUCTURE `Y`'' l_ HERCULES,CA 94547 TEL(800)859-9900 CHAIR d S May 4,2004 The Honorable Federal Glover Chair of Board of Supervisors Contra Costa County 651 Pine Street Martinez,California 94553 Dear Supervisor Glover: I am writing this letter to update you and the Board of Supervisors on the status of Senate Bill 1266,a bill regarding LAFCO and annexations. I have appreciated the recent conversations I have had with you and other members of the Board of Supervisors about Senate Bill 1266. I think this exchange of information and ideas is important,and I know we can continue to work together to meet our shared objectives. I am writing to convey my concerns about the staff report,and to indicate an approach that I believe will give us the time needed to resolve those concerns. Yesterday morning I reviewed the staff report from County Administrator John Sweeten on Senate Bill 1266. I am concerned the recommendations are based,at least in part,on several inaccuracies about the bill's provisions and misunderstandings about the bill's purpose and likely results.These findings are included within the Board Order provided to my office on May 3, 2004. They include: 1) The bill does not"open thousands of acres of agricultural land in Contra Costa County to urban development." Senate Bill 1266 does not change the existing requirement that island or notch annexations must be consistent with a city's sphere of influence. The responsibility for determining a city's future boundary and service area remains with LAFCO. This bill also does not affect thousands of acres by its provision dealing with the definition of „substantially surrounded." LAFCO now could receive applications for mandatory annexation from a single city that surrounded over 50 percent of a parcel. It could then proceed to annex those parcels. Board of Supervisors May 4,2004 Page 2 2) Item.2 in the analysis says that"there is no provision in SB 1266 to prevent a series of linked or related mandatory annexations that could total several thousand acres." That assertion fails to recognize the language on page 4,line 36 to page 5,line 4 which quite clearly prevents the sequential use of the bill's procedures. That language was amended into the bill in response to the comments received from city,county,and LAFCO officials. I shared my decision with county officials and representatives at an April 22 meeting. 3) Item 3 in the analysis says that"SB 1266 would potentially circumvent the CEQA process. That assertion fails to cite any provision of the bill. And,further,it fails to recognize the language on page 9,line 26 to page 10,line 5(and particularly page 10,lines 1 to 3)which make it clear that the bill does not affect any existing CEQA requirements. Similar language has been in Senate Bill 1266 since the April 15 amendments. 4) Item 4 in the analysis implies that the bill somehow erodes a LAFCO's ability to set a standard that defines"substantially surrounded." The specific language of the bill makes it plain that a LAFCO can pick a local standard.On page 3,lines 19 and 20 and then lines 25 to 27 provide ample local authority for those standards.Without any changes in the law, numerous parcels that are notches surrounded by more than 50 percent by a single city can be subject to a mandatory annexation following a city's application.Present law allows a LAFCO,either on an individual application basis or on a broader policy basis,to establish what standards it wishes to set. Let's work together to clear up the confusion that exists about these provisions of Senate Bill 1266.As you know,my staff and I are always willing to work with you and county staff to clear up any misunderstandings that may be created by legislation under consideration in Sacramento. In light of these concerns,and pursuant to my discussions with you.,other members of the board,and city officials over the past several days,I have decided to modify Senate Bill 1.266. I understand that sensitive negotiations and deliberations are going on at this time over the urban limit line and the new Measure C for transportation.I do not want Senate Bill 1266,or questions over its provisions,to detract from these negotiations.Therefore,I will make the following changes: I will delete those features of Senate Bill 1266 relating to annexing islands or notches surrounded by one or more cities. • I will continue with the bill's other provision,which seems to enjoy broader support. Current law tells LAFCOs that they must waive the usual protest hearings for island annexations that are 75 acres or smaller (Government Code§56375.3). By waving the protest hearing,current law also avoids the need for an annexation election.This current provision in the Cortese-Knox-Hertzberg Act exists because cities asked legislators to help Board of Supervisors May 4,2004 Page 3 them erase these enclaves of unincorporated.territory. As I have listened to LAFCOs and city officials talk about island annexations,they have convinced me that the Legislature should raise the island's maximum size from 75 acres to 154 acres. The April 29 amendments to Senate Bill 1.266 have already accomplished that change (page 8,line 19) and it will remain:in the bill. My decision to modify Senate Bill 1266 does not change my belief that strong positive policy merits exist for my proposal regarding the annexation of notches and islands substantially surrounded by two cities.I plan to pursue this idea in the future after we all have had more time to study its policy impacts and the best ways to implement it. I remain interested in receiving responses from the county and cities to my April 15th letter requesting information on the specific potential impacts of the provisions I have subsequently decided to hold over for now. I encourage you to ask county staff to inform my office about these specific impacts so we all have a more complete understanding of these issues. I am encouraged that the Board of Supervisors is examining my concerns about the urban limit line.Specifically,I have received positive feedback regarding the need to ensure that the land within the urban limit line includes clear plans to meet the guideline and goal of a 20-year housing supply. I have also discussed the need to have a 5-year review and careful analysis to evaluate whether the 20-year supply goal is being met. Obviously,how we evaluate the inventory's readiness and trueness is critically important. I believe we must ensure that all jurisdictions are meeting their housing goals so that the collective goal,therefore,is attainable. I urge you to consider and adopt rigorous standards that reflect the true availability of the designated lands for housing—not just paper-approved inventory in general plans and zoning. For instance,if currently business zoned property is in a business park or being occupied by other office uses,is the owner really willing or likely to convert the property to a residential use if the city's general plan is changed to residential?Or,what if the land is burdened by a hazard or a brownfield—is it really available to meet the housing needs and needs?If the city rezones to residential,what are honest prospects of the property overcoming these obstacles in a 20-year period? I believe we need to ensure we can reconcile current state law on LAFCO and housing element law with the increasing use of urban growth boundaries in California.To avoid leapfrog sprawl growth out of one county into neighboring counties W-and to provide the ample supply of housing required to enable jabs growth and economic vitality in an increasingly global economy,we need to ask hour we can plan cooperatively for the housing inventory needed and deal with urban limit lines when they are not working. Board of Supervisors May 4,2004 Page 4 Given the fact that state taxpayers and the state budget are picking up the financial and economic consequences of such multi-county sprawl development,I believe the state has a very direct interest in the outcome of this debate. Finally,I appreciate the interest in pursuing an alliance for housing and for urban infill--to assist in an ongoing way in finding solutions to the housing crisis we face in our county and the state. As you know,I have a long track record of supporting more housing supply--in the right locations and with proper mitigations--to deal with the price crisis and to restore the California dream of owning a home.If we fail to create the right inventory of land for housing,rents and mortgages will continue to shoot through the roof. This would create a situation that,as the Contra Costa Times noted in a March 31st editorial,"drive[s]corporations away from the Bay Area.. and drive[s]job-producing companies from locating here," I also look forward to developing further the concepts we have discussed in an effort to establish a housing support team.in Contra Costa County.I believe such a coalition effort will help all of us achieve our extremely important housing goals. Thank you again for all of your feedback.I appreciate your efforts and look forward to continuing to work with you to meet the needs of our shared constituents. Sincerely, Torn.Torlakson CA11TCL OFFICE D$5 T, rJF-PiCE STATE CAR;T Cu. ROOM 505"f 2801 CONCORD BOULEVARD SACRAMENTO,CA 95814 g �+�r} �y ,y���'r*j/� ^g$'_�-y �y �y CONCORD.CA 945!9 TAX l916)445-2083 %" atatr TEL 1925)602-6593 =AX(9'.6)445-2527 FAx(9257 602-6^98 JOINT GOVERNMENT CENTER SENATOR 420 WES-. ORD STitE-ET sTAno:Nc cc>nnu;:i�EE � TC��i ANT i0CH.CA 94509 �P4 � TEL(325)754.1467 LOCAL GOVERNMENTTOM (925)778-5174 CHAIR SEVENTH SENATE DIS,.RICT WEST COUNTY SATELLITE OF'r"ICE SELECT CCMM:TYEE i 9 S CMC DRIVE 9AY AREA;NFRASTRUCTURE HERCULES,CA 94547 CHASR TEL 18007 858-9900 yR�h;_ r � r 3 May 4,2004 The Honorable Federal Glover Chair of Board of Supervisors Contra Costa County 651 Pine Street Martinez,California 94553 Dear Supervisor Glover: I am writing this letter to update you and the Board of Supervisors on the status of Senate Bill 1266,a bill regarding LAFCO and annexations. I have appreciated the recent conversations I have had with you and other members of the Board of Supervisors about Senate Bill 1266. I think this exchange of information and ideas is important,and I know we can continue to work together to meet our shared objectives. I am writing to convey my concerns about the staff report,and to indicate an approach that I believe will give us the time needed to resolve those concerns. Yesterday morning I reviewed the staff report from County Administrator John Sweeten on Senate Bill 1266.I am concerned the recommendations are based,at least in part,on several inaccuracies about the bill's provisions and misunderstandings about the bill's purpose and likely results.These findings are included within the Board Carder provided to my office on May 3,2004. They include: 1) The bill does not"open thousands of acres of agricultural land in Contra Costa County to urban.development." Senate Bill 1266 does not change the existing requirement that island or notch annexations:must be consistent with a city's sphere of influence. The responsibility for determining a city's future boundary and service area remains with LAFCO.This bill also does not affect thousands of acres by its provision dealing with the definition of "substantially surrounded." LAFCO now could receive applications for mandatory annexation from a single city that surrounded over 50 percent of a parcel. It could then proceed to annex those parcels. Board of Supervisors May 4,2004 Page 2 2) Item 2 in the analysis says that"there is no provision in SB 1266 to prevent a series of linked or related mandatory annexations that could total several thousand acres." That assertion fails to recognize the language on page 4,line 36 to page 5,line 4 which quite clearly prevents the sequential use of the bill's procedures.That language was amended into the bill in response to the comments received from city,county,and LAFCO officials.I shared my decision with county officials and representatives at an April 22 meeting. 3) Item 3 in the analysis says that"SB 1.266 would potentially circumvent the CEQA process." That assertion fails to cite any provision of the bill. And,further,it fails to recognize the language on page 9,line 26 to page 10,lime 5 (and particularly page 10,lines 1 to 3) which make it clear that the bill does not affect any existing CEQA requirements. Similar language has been in Senate Bill 1266 since the April 15 amendments. 4) Item 4 in the analysis implies that the bill somehow erodes a LAFCO's ability to set a standard that defines "substantially surrounded." The specific language of the bill makes it plain that a LAFCO can pick a local standard. On page 3,lines 19 and 20 and then lines 25 to 27 provide ample local authority for those standards. Without any changes in the law, numerous parcels that are notches surrounded by more than 50 percent by a single city can be subject to a mandatory annexation following a city's application. Present law allows a LAFCO,either on an individual application basis or on a broader policy basis,to establish what standards it wishes to set. Let's work together to clear up the confusion that exists about these provisions of Senate Bill 1266.As you know,my staff and I are always willing to work with you and county staff to clear up any misunderstandings that may be created by legislation under consideration in Sacramento. In light of these concerns,and pursuant to my discussions with you,other members of the board,and city officials over the past several days,I have decided to modify Senate Bill 1266. I understand that sensitive negotiations and deliberations are going on at this time over the urban limit line and the new Measure C for transportation.I do not want Senate Bill 1266,or questions over its provisions,to detract from these negotiations. Therefore,I will make the following changes: I will delete those features of Senate Bill 1266 relating to annexing islands or notches surrounded by two cities. + I will continue with the bill's other provision,which seems to enjoy broader support. Current law tells LAFCOs that they must waive the usual protest hearings for island annexations that are 75 acres or smaller(Government Code§56375.3). By waving the protest hearing,current law also avoids the need for an annexation election.This current provision in the Cortese-Knox-Hertzberg Act exists because cities asked legislators to help Board of Supervisors May 4,2004 Page 3 there erase these enclaves of unincorporated territory. As I have listened to LAFCOs and city officials talk about island annexations,they have convinced me that the Legislature should raise the island's maximum size from 75 acres to 150 acres. The April 29 amendments to Senate Bill 1266 have already accomplished that change (page 8,line 19) and it will remain in the bill. My decision to modify Senate Bill 1266 does not change my belief that strong positive policy merits exist for my proposal regarding the annexation of notches and islands substantially surrounded by two cities. I plan to pursue this idea in the future after we all have had more time to study its policy impacts and the best ways to implement it. I remain interested in receiving responses from the county and cities to my April 15th letter requesting information on the specific potential impacts of the provisions I have subsequently decided to hold over for now. I encourage you to ask county staff to inform my office about these specific impacts so we all have a more complete understanding of these issues. I am encouraged that the Board of Supervisors is examining my concerns about the urban limit line.Specifically,I have received positive feedback regarding the need to ensure that the land within the urban limit line includes clear plans to meet the guideline and goal of a 20-year housing supply. I have also discussed the need to have a 5-year review and careful analysis to evaluate whether the 20-year supply goal is being met. Obviously,how we evaluate the inventory's readiness and trueness is critically important. I believe we must ensure that all jurisdictions are meeting their housing goals so that the collective goal,therefore,is attainable. I urge you to consider and adapt rigorous standards that reflect the true availability of the designated lands for housing—not just paper-approved inventory in general plans and zoning. For instance,if currently business zoned property is in a business park or being occupied by other office uses,is the owner really willing or likely to convert the property to a residential use if the city's general plan is changed to residential?Or,what if the land is burdened by a hazard or a brownfield—is it really available to meet the housing needs and needs?If the city rezones to residential,what are honest prospects of the property overcoming these obstacles in a 20-year period? I believe we need to ensure we can reconcile current state law on LAFCO and housing element law with the increasing use of urban growth boundaries in California.To avoid leapfrog sprawl growth out of one county into neighboring counties- and to provide the ample supply of housing required to enable jobs growth and economic vitality in an increasingly global economy,we need to ask how we can plan cooperatively for the housing inventory needed and deal with urban limit lines when they are not working. Board of Supervisors May 4,2004 Page 4 Given the fact that state taxpayers and the state budget are picking up the financial and economic consequences of such multi-county sprawl development,I believe the state has a very direct interest in the outcome of this debate. Finally,I appreciate the interest in pursuing an alliance for housing and for urban infill—to assist in an ongoing way in finding solutions to the housing crisis we face in our county and the state. As you know,I have a long track record of supporting more housing supply--in the right locations and with proper mitigations—to deal with the price crisis and to restore the California dream of owning a home.If we fail to create the right inventory of land for housing,rents and mortgages will continue to shoot through the roof. This would create a situation that,as the Contra Costa'dimes noted in a March 31st editorial,"'drive[s]corporations away from the bay Area...and drive[s]job-producing companies from locating here." I also look forward to developing further the concepts we have discussed in an effort to establish a housing support team in Contra Costa County. I believe such a coalition effort will help all of us achieve our extremely important housing goals. Thank you again for all of your feedback. I appreciate your efforts and look forward to continuing to work with you to meet the needs of our shared constituents. Sincerely, Tom Torlakson A.MI NDED IN SENATE APRIL 2t},2004 AMENDED IN SENATE APRIL 15,2004 AMENDED IN SENATE APRIL 12,20034 SENATE BELE No. 126+6 Introduced by Senator Torlakson (Coauthor:Assembly Member Maze) February 13,20034 m471an An act to amend F56375.3 of the Government, Code,relating to annexation. LEQISLMVG COUNSFUS Drop-ST SB 1266, as amended,Torlakson. Annexation. (1) Under existing law, the local agency foetation commission in each county has specified powers and duties concerning the review and approval and disapproval of proposals for changes of organization or reorganization of cities and districts within the county, However, a commission may not disapprove an annexation of contiguous territory to a city initiated by resolution of the city governing body if the commission ends that the territory meets any of a number of specified conditions. One of these conditions is that the territory is surrounded or substantially surrounded by the city or by the city and a county boundary or the Pacific Ocean, is substantially developed or developing,is not grime agricultural land,as defined,is designated for urban growth by the general plan of the city,and is not within the sphere of influence of another city. This bill would revise that condition under which the commission may not disapprove the annexation to specify that:(a)not less than 51 percent of the exterior boundary of the territory to be annexed is 9G 13- 0#C!#OQ d EZZ-i 8820 ZZE 9t6 331ilM03 iG1htHAOD IV301 31YO-wai j ws$9:8D SB 1266 —2— surrounded by the annexing city,by that city and a county boundary or the Pacific Ocean,or that city and another city,unless the commission adapts a different defsnition for "substantially surrou»ded, territory is either developed or designated for urban grow th by the ' ) the general plan of the annexing city, (c) sewer service, structural fire protection service,streets and roads,and domestic water service will be acres. available upon,annexation,and(d)the territory does not exceed 1000 (2) Existing law requires the commission to approve island annexations that meet certain,requirements. One of those requirements is that if it does not exceed 75 acres in area that area co stitutes the entire island, and that island does not constitute a part of an unincorporated area that is more than 100 acres in area. This bill would change the 75-acre requirement to 4301.50 acres and delete the restriction that the island dues not constitute a part of an unincorporated territory that is more than 100 acres in area. The bill would also require that when the territory proposed to be annexed is substantially surrounded by a city,and another city,the city that initiated the proposal, prior to submitting the application to the commission, shall notify the other city of its intention to initiate the annexation proposal and would specify the contents and requirements of that notification. The bill would also require the commission to consider the effect of the proposal on any urban 44rAt growth boundary. The bill would permit the commission to disapprove the proposal for annexation if the other city objects in writing. Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no. The people of the state of California dry enact as follo ws: 2 ended to read: 3 5 The commission shall have alla following 4 powers an s subject to any limi ' s upon its jurisdiction 5 set forth in this p . 6 (a) To review an e or disapprove with or without S4-n 7 amendment, y, partially, o"`s itionaIly, proposals for 8 chang organization or reorganization,c ent with written 9 les,procedures, and guidelines adopted by the scion. f 96 18r,-d Oltl/ZOO d EZZ-1 8620 ZZE eta �311lkVViO� 1N3NtNa3R0� 1V�01 3lVN3S-u►a�d u��yr,:Bp yaQZ_p�_,Cey� -3— 5B 1266 1 , E✓ , 6 o (4) establishment of a subsidiary district, or a reorganiza n 3 the includes any of these changes cif organiZadon.A conurii ion 4 steal ave the authority to initiate only a (1) consolida ° n of 5 distr , (2) dissolution, (3) merger, (4) establishrne t of a 6 subsiddistrict, or (5) a reorganization that incl u any of 7 these ch ges of organization, if that change of org tion or 8 reorganize 'on is consistent with a.recommendation . conclusion 9 of a study p pared pursuant to Section 56378, 5 25, or 56430 10 and the c cion makes the determinatio specified in 11 subdivision (b) f Section 56881. However, a ornmission shall 12 not have the paw to disapprove an annexa to a city,initiated 13 by resolution,of c tiguc rus territory that commission finds is 14 any of the following, 15 (1) The territory be annexed is all of the following 16 criteria: 17 (A) Surrounded ors stantiall surrounded by the city to 18 which the-annexation is opus by that city and a county 19 boundary or the Pacific Oce that city and another city:in the 20 absence of a standard adopte a commission, as used in this 21 paragraph, "substantially sit deo"means that not less than 51 $ Yj P *U-r- 22 percent of the exterior b Bary the territory proposed to be 23 annexed is surrounded the c' which the annexation is 24 proposed,by that city a county bo dary or the Pacific Ocean, 25 or that city and snot city.Nothing ' section shall preclude 26 a commission fro adopting a highs standard that defines 27 "substantially s ounded." 28 (B) Ys subs y developed,develop' or is designated for 29 urban growth y the general plan.of the anne %rig city. 30 (C) Sew service, structural fire protection ryice,streets and 31 roads, and amestic water service will be availab to the affected 32 territory on annexation from either the anne city or special 33 district 34 (D) s not prime agricultural land,as defined by S 'on 56064. 35 ( Does not exceed 1,000 acres. 36 is not within the sphere of influence of another ci - 37 2) The territory to be annexed is located wit}tin art an 38 ice area that has been delineated and adopted by a co on, 39 96 lag- O10/800'd EZZ-1 8620 ZZB eta 3311IM103 iN3t"1NHAOS IV301 BIVUS-woad RVS-80 MZ-VO-ABA SB 1266 4 1 2 0 3 An annexation or reorganization of unincorporated is ds 4 mee ` g the requirements Of Section 56375.3. 5 In a situation where the affected territory is surrou ded or 6 subs 'ally surrounded by a city and another city, the ity that 7 initiated a proposal shall,prior to submitting the ap cation to 8 the co sion,.notify the other city and the county gardmg its 9 intention t ' 'tiate the proposal to annex the tem't The city's 10 notice to the ther city and the county shall des c a in as rnuch 11 detail as is Fe ible the effects of the proposal traffic, school 12 populations, a 'culture and open-space lands and use policies, 13 spheres of in . nee, urban lii� ,-- wth boundaries, 14 economic develop ent,and af-ordable hou ` g.The city's notice 15 shall also invite the om2mnts of the otll 16 17 18 ' 19 20 ' { . city and the county, 21 Upon submission of the pro t to the execrative officer, the 22 executive officer shall convert muting to discuss any issues ? 23 related to the proposal and s it i vite representatives of the city 24 that initiated the proposal, a of r city, the county, and any 25 affected districts. This me ting shat ke place no later than 21 26 clays subsequent to the mission ofosal to the executive 27 officer. The executive cer shall not ' e a certificate offiling ZS pursuant to Section S d58 prior to this mng. Notwithstanding 29 Section 56663,the rrunission shall give th notices and conduct 30 the hearing pars t to Chapter 1 (comm ting with Section 31 56650)of Part 3 At the hearing,in addition to a ether factors to 32 be cmisidered ursuant to Section 56668, the c mmission shall 33 consider the ffect of the proposal on any urban i growth 34 boundary, otwithstanding any other provision of ' section,the 35 commis 'orz may ,disapprove that proposal for anne tion to the 36 city if a other city objects in writing,xotwithstandin ny other 37 prov` ion of this section, the comanission shall not ajfpr ve more 38 tha one annexation of affected territory that' is surrou ed or 39 sa stantially surrounded by a city and another city. F the 40 tA 96 185-d GlG/trGG d EZZ-i BUD ZZ£ SIB 3311lMOO iUANHA03 1V001 31VNBS-ula1 ute ...................... d tr£ 8G trGGZ_trG-��69 -- --- B 1266 2 b ause of a previcncs annexation of tenitoty that was sound 3 or bstandally surrounded by a city and another city and that as 4 app ved pursuant to this section. 5 As condition to the annexation of an area that is s'urro ded, 6 or sub tially surrounded,by the city to which the anne anon is 7 proposed, a commission may require,where consiste with the 8 purposes o this division, that the annexation includ the entire 9 island of s ended,or substantially surrounded,t `tory. 10 A commissx n shall not impose any conditio s that would 11 directly ,21 la land use density or int sity, property 12 development, o subdivision requite . When the 13 development purpo s are not made known t the annexing city 14 the annexation shall b reviewed on the Basi trfthe adapted platin 15 and policies of the arm ing city or coon . A commission shall 16 require, as a condition annexation, at a city prezone the 17 territory to be annexed o present cv' ence satisfactory to the 18 commission that the exi develo ent entitlements on the 19 territory are vested or are al dy a `Idout,and are consistent 20 with the city's general plan. w er, the commission shall not 11 tx. 21 specify how'; or in what manner ' e territory shall be prezoned. 22 The decision of the commissirn regard to a proposal to annex 23 territory to a city shall be as an the general plan and 24 prezoning of the city. 25 (b) With regard to a pr osal for exation or detachment of 26 territory to,or fxorn,a c' or district or ith regard to a.proposal 27 for reorganization includes annexa ' n or detachment, to 28 determine vtrhether territory proposed or annexation or 29 detachment, as scribed in its resole n approving the 30 annexation, de ent, or reorganization, is inhabited or 31 uninhabited. 32 (c) With r and to a proposal for consolidation f two or more 33 cities err cts, to determine which city or distric shall be the 34 consoltda d, successor city or district. 35 (d) I approve the annexation of mine rated, 36 nc neo ous territoM subject to the limitations of ection 37 567 , located in the same county as that in which the ' is 38 lac d, and that is owned by a city and used for muni c al 39 P uses and to authorize the annexation of the territory witho 40 96 16�-d Q#II19Q�'d EtZ-Z 88ZQ ZZE 9t6 33flINM10� 1N36VN83Ag3 1Y�0"I 31VN�5-moat ��tiB�80 VDOZ-pQ-fi�4Y LXU 1266 .� 1 2 c sistent with the planned and probable use of the property ba 3 upo the review of general plan and pre= designations c� 4 subse cent change may be made to the general plan f the 5 annex territory or zoning that is ,not in conformance o the 5 prezo ' designations for a period of two years er the 7 comp et, of the annexation,unless the legislative b y for the 8 city makes finding at a public hearing that a subs tial change 9 has occurr n circumstances that necessitate a dep from the 10 prezoning in a application to the cornmission. 11 (f) With re ect to the incozporatiorl of a ew city or the 12 formation of a n w special district, to dee a the number of 13 registered voters siding within the prop ed city or special 14 district or, for a Ian owner-voter special strict, the number of 15 owners of land and a assessed value their land within, the 16 territory proposed to b included in the ew special district. The 17 number of registered vot s shall be ca ated as of the time of the 18 last report of voter regis -on by county elections official to 19 the Secretary of State prio to th date the first signature was 20 affixed to the petition. The utive officer shall notify the 21 petitioners of the number of re stored voters resulting from this 2.2 calculation. The assessed va e f the land within the territory .IT7 ke cu- 23 proposed to be included in lew idowner-voter special district 24 shall be calculated asshove on the l t equalized assessment roll. 25 (g) To adopt written p edures for a evaluation of proposals, 26 including written def ions not jaco . tent with existing state 27 law. The commi,ssio ay adopt standar for any of the factors 228 enumerated in Sec on 56658. Any stag ds adopted by the 29 commission shall a written. 30 (h) Toadopt tandards quid procedures for a evaluation of 31 service plans iubmitted pursuant to Section 6653 and the 32 initiation of change of orrganization,or reorgan* ion pursuant 33 to subdivis` n(a.). 34 (i) To ake and enforce regulations for the order and fair 35 conduct fhearings by the commission. 36 (j) o incur usual and necessary expenses f the 37 acco plishment of its functions. 38 To appoint and assign staff personnel and to empl or 39 c tract for professional or consulting services to carry out a 40 ss 165-� Dl0/90t} d EZZ-! BBZB ZZE 918 33111MOO 1N94yN�3Ap9 'IdaO1 31dN3S-+�� we a -7— SB 1266 1 2 nasal with respect to the definiteness and certainty of ° se 3 bo daries, the nonconformance of proposed boundaries th 4 lines f assessment or ownership, and other similar hers 5 affec' the proposed boundaries. 6 (rn) waive the restrictions of Section 56744 if fids that 7 the app lic on of the restrictions would be de ental to the 5 orderly deo opmenz of the community and the area that 9 would be enc ed by the annexation or incorpa on is so located 10 that it cannot reasonably be annexed another city or 11 incorporated as a ew city. 12 (n) To waive th application of Secti 25210.90 or Section 13 22613 of the Streets Highways Co if It finds the application 14 would deprive an area f a service tided to ensure the health, 15 safety, or welfare of the , 'dents o e area and if it finds that the 16 waiver would riot affect the iii a a city to provide:any service. 17 However,within 60 days of th lusion of the territory within the 18 city, the legislative body m dopt a resolution nullifying the 19 waiver.: 20 (o) If the proposal i hides th incorporation of a cityr as 21 defined in Section 5601 ,or the f , `cin of a district,as defined 22 in Section 2215 the Revenue Taxation Code, the 23 commission shal determine the proper tax revenue to be 24 exchanged by a affected local agencies ursuant to Section 25 56510. 26 (p) To a orize a.city or district to provide w or extended 27 services o ide its jurisdictional boundaries puts t to Section 25 56133. 29 (q) o enter into an agreement with the commiss for an 30 adjo I county for the purpose of determining procedur for the 31 co ideration ofproposals that may affect the acitoining cot or 32 re the jurisdiction of an affected agency crasser the Noun 33 34 -f4 :-2- Seetion 56375.3 of the Government Code is amended 35 to read: A.....�... 36 5£375.3, (a) In addition to those powers enumerated in 37 Section 56375,a commission shall do either of the following: 38 (1) Approve,-after notice and hearing,the anrtcxation to a city, 39 and waive protest proceedings pursuant to Part 4 (commencing 40 with Section 57000)entirely, if all of the following are true: 96 185-1 CIO/ZH*d £ZZ-1 a8Zo ZZE 9t8 33111 6D 1N3AWAOD 1Y301 31YUS_Mi as93 8Q VC7QZ-��-xe4y SB 1266 ---8-- 1 (A) The annexation is initiated on or after January 1,2000,and 2 before January 1.,2007. 3 (B) The annexation is proposed by resolution adopted by the 4 affected city: 5 (C) The commission finds that the territory contained in the 6 annexation proposal meets all of the requirements set forth in 7 subdivision (b). 8 (2) Approve, after notice and hearing,the annexation to a city, 9 subject to subdivision(a)of Section 57080,if all of the following 10 are true: I I (A) The annexation is initiated on or after January 1, 2007. 12 (B) The annexation is proposed by resolution adapted by the 13 affected city. 14 (C) The commission finds that the territory contained in the 15 annexation proposal meets all of the requirements set forth in 16 subdivision(b). 17 (b) Subdivision: (a) applies to territory that meets all of the 18 following requirements: 19 (1) It does not exceed 440-150 acres in area, and that area 20 constitute , 21 . 22 the entire island. 23 (2) The territory constitutes an entire un corporated island 24 located within the limits of a city,or constitutes a reorganization 25 containing a number of individual unincorporated islands. 26 (3) It is surrounded in either of the following ways: 27 (A) Surrounded, or substantially surrounded, by the city to 28 which annexation is proposed or by the city and a county boundary 29 or the Pacific Ocean. 30 (B) Surrounded by the city to which annexation is proposed 31 and adjacent cities. 32 (C) This subdivision shall not be construed to apply to any 33 unincorporated island within a city that is a gated community 34 where services are currently provided by a communityservices 35 district. 36 (l3) Notwithstanding any other prevision of law, at the option 37 of either the city or the county, a separate property tax transfer 38 agreement may be agreed to between a city and a county pursuant 39 to Section 99 of the Revenue and Taxation Cade regarding an �s I E ltl C', a*LJtS 0n " P(��! 159-1 010f800*d EZZ-1 8BZ0 ZZE ale 33111MOD 1MMA00 IV001 31dNB-M� ��39 80 t00Z-�0-R�� -9— SR 1266 1 annexation subject to this subdivision without affecting any 2 existing master tax sharing agreement between the city and county. 3 (4) It is substantially developed or developing. The finding 4 required by this subparagraph shall be Rased upon one or more 5 factors, including,but not limited to,any of the following factors; 6 (A) The availability of public utility services. 7 (D) The,presence of public improvements. 8 (C) The presence of physical improvements upon the parcel or 9 parcels within the area. 10 (5) It is not prime agricultural land, as defined by Section 11 56064. 12 (6) it will benefit from the annexation or is receiving benefits 13 from the annexing city. 14 (c) Notwithstanding ,any other provision of this subdivision, 15 this subdivision shall not apply to all or any part of that portion of 16 the development project area referenced in subdivision (e) of 17 Section 33492.41 of the Health and Safety Code that as of January 18 1,2000,meets all of the fallowing requirements: 19 (1) Is unincorporated territory. 20 (2) Contains at least 100 acres. 21 (3) Is surrounded or substantially surrounded by incorporated 22 territory. 23 (4) Contains at least 100 acres zoned for commercial or 24 industrial uses or is designated on the applicable county general 25 plan for commercial or industrial uses. 26 27 56 of tlxe ao;;ntnent Code,the Legislature fmds ii� ares 28 ift 29 30 31 afteOed ke- 33Tik 34 that there is no ch a to any o,f tie fo 35 (d) There ement in Section 56'375.5 o Government 36 Codetharescliangwoforganizatioicofreorg Berns tv 37 be c Mth the sphems of influence f Iuence of the local a ies 38 189-4 90/899'd EZZ-1 8620 ZZE SO 33111MOO IN3193AOD 1YO01 MUS-011 �egg:8p tr992-�9-fi�yl S$ 1266 --- 1 2 Act(Div-ion encing with Section 21 �'ul�tic 3 Resources Code, 4 (c) The aecton 99 ref the nd Trrxcation ' s 0 96 189-� �tl1/DiB d EZZ-1 88ZU ZZE Bl8 3411iWU(Q� 1N314Na4AQJ 1V�01 41VN4S-�aa use s CONTRA COSTA COUNTY ADMIN ISTRATOR ' S OFFICE r 651 PINE STREET , 11TH FLOOR Cc f5 MARTINEZ , CA 94553 fr ( 925) 335 - 1080 ( 925 ) 335 - 1098 - FAX FACSIMILE TRANSMITTAL SHEET TO: FROM: John Sweeten Cathy �� County Administrator COMPANY: DATE: 5/4/04 FAX NUMBER: TOTAL NO.OF PAGES INCLUDING COVER: PTIONE NUMBER SENDER'S REFERENCE NUMBER: RE; YOUR REFERENCE NUMBER: SB 1266 El URGENT El FOR REVIEW El PLEASE COMMENT Cl PLEASE REPLY El PLEASE RECYCLE NOTES/COMMENTS: Attached are: 1. Final draft of letter to Federal Glover 2. Copy of bill with promised amendments indicated. Board today agreed to"Support if amended"as shown on the copy CAPITOL OFFtCE DISTRICT O1"FICE STATE CAPITOL, ROOM 5061 2801 CONCORD BOULEVARD SACRAMENTO.CA 55314 ///,���'''``` }- y'q¢� ^}+fig$'fig- 'p('' g9, }-+ CONCORD,CA 94519 TEL(916)445TEL(925)6072.6593 FAX(916)445..25272527 FAX(925)502-6598 JOINT GOVERNMENT CENTER SENATOR 4.2ANTIOCH,CA 94509 +0 WEST 3RD STREET STANDING COMMITTEE ,�,,,OM „�„��� � TEL(925)754-1461 LOCAL GOVERNMENT ;'AX(925)778-5174 CHAIR SEVENTH SENATE DISTRICT 'WEST COUNT'SATELLITE OFFICE SELECT COMMITTEE 1 1 1 CIVIC DRIVE BAY AREA INFRASTRUCTURE HERCULES,CA 54547 CHAIR �b �I TEL(800)859.9900 �r 2y�(yU i �✓�� dS„Y 4 �f May 4,2004 The Honorable Federal Glover Chair of Board of Supervisors Centra Costa County 651 fine Street Martinez,California 94553 Dear Supervisor Glover. I am writing this letter to update you and the hoard of Supervisors on the status of Senate Bill 1266,a hill regarding LAFCO and annexations. I have appreciated the recent conversations I have had with you and other members of the Board of Supervisors about Senate Bill 1266. I think this exchange of information and ideas is important,and I know we can continue to work together to meet our shared objectives. I am writing to convey my concerns about the staff report, and to indicate an approach that I believewill give us the time needed to resolve Mose concerns. Yesterday morning I reviewed the staff report from County Administrator John Sweeten on Senate Bill 1266.I am concerned the recommendations are based,at least in part,on several inaccuracies about the bill's provisions and misunderstandings about the bill's purpose and likely results.These findings are included within the Board Order provided to my office on May 3,2004. They include: 1) The bill does not"open}thousands of acres of agricultural land in Contra Costa County to urban development." Senate Bill 1266 does not change the existing requirement that island or notch annexations must be consistent with a city's sphere of influence. The responsibility for determining a city's future boundary and service area remains with LAFCO. This bill also does not affect thousands of acres by its provision dealing with the definition of "substantially surrounded." LAFCO now could receive applications for mandatory annexation from a'single city that surrounded over 50 percent of a parcel. It could then proceed to annex those parcels. Board of Supervisors May 4, 2004 Page 2 2) Item 2 in the analysis says that"there is no provision in SB 1266 to prevent a series of linked or related mandatory annexations that could total several thousand acres." That assertion fails to recognize the language on page 4,line 36 to page 5, line 4 which quite clearly prevents the sequential use of the bill's procedures.That language was amended into the bill in response to the comments received from city,county,and LAFCO officials. I shared my decision with county officials and representatives at an April 22 meeting. 3) Item 3 in the analysis says that"SB 1266 would potentially circumvent the CEQA process." That assertion fails to cite any provision of the bill. And,further,it fails to recognize the language on page 9,line 26 to page 10,line 5 (and particularly page 10,lines 1 to 3)which make it clear that the bill does not affect any existing CEQA requirements. Similar;language has been in Senate Bill 1266 since the April 15 amendments. 4) Item 4 in the analysis implies that the bill somehow erodes a LAFCO's ability to set a standard that defines"substantially surrounded." The specific language of the bill makes it plain that a LAFCO can pick a local standard.On page 3,lines 19 and 20 and then lines 25 to 27 provide ample local authority for those standards. Without any changes in the law, numerous parcels that are notches surrounded by more than 50 percent by a single city can be subject to a mandatory annexation following a city's application.Present law allows a LAFCO,either on an individual application basis or on a broader policy basis,to establish what standards it wishes to set. Let's work together to clear up the confusion that exists about these provisions of Senate Bill 1266. As you know,my staff and I are always willing to work with you and county staff to clear up any misunderstandings that may be created by legislation under consideration in Sacramento. In light of these concerns,and pursuant to my discussions with you,other members of the board,and city officials over the past several days,I have decided to modify Senate Bill 1266. I understand that sensitive negotiations and deliberations are going on at this time over the urban limit line and the new Measure C for transportation.I do not want Senate Bill 1266,or questions over its provisions,to detract from these negotiations.Therefore,I will make the following changes: • I will delete those features of Senate Bill 1266 relating to annexing islands or notches surrounded by one or more cities. • I will continue with the bill's other provision.,which seems to enjoy broader support. Current law tells LAFCOs that they must waive the usual protest hearings for island annexations that are 75 acres or smaller(Government Code§56375.3). By waving the protest hearing,current law also avoids the need for an annexation election.This current provision in the Cortese-Knox-Hertzberg Act exists because cities asked legislators to help Board of Supervisors May 4,2004 Page 8 them erase these enclaves of unincorporated territory. As I have listened to LAFCOs and city officials talk about island annexations,they have convinced me that the Legislature should raise the island's maximum size from 75 acres to 150 acres. The April 29 amendments to Senate Bill 1266 have already accomplished that change(page 8,line 19) and it will remain in the bill. My decision to modify Senate Bill 1266 does not change my belief that strong positive policy merits exist for my proposal regarding the annexation of notches and islands substantially surrounded by two cities. I plan to pursue this idea in the future after we all have had more time to study its policy impacts and the best ways to implement it. I remain interested in receiving responses from the county and cities to my April 15th letter requesting information on the specific potential impacts of the provisions I have subsequently decided to hold over for now. I encourage you to ask county staff to inform my office about these specific impacts so we all have a more complete understanding of these issues. I am encouraged that the Board of Supervisors is examining my concerns about the urban limit line. Specifically,I have received positive feedback regarding the need to ensure that the land within the urban limit line includes clear plans to meet the guideline and goal of a 20-year housing supply. I have also discussed the need to have a 5-year review and careful analysis to evaluate whether the 20-year supply goal is being met. Obviously,how we evaluate the inventory's readiness and trueness is critically important. i believe we must ensure that all jurisdictions are meeting their housing goals so that the collective goal,therefore,is attainable. I urge you to consider and adopt rigorous standards that reflect the true availability of the designated lands for housing—not just paper-approved inventory in general plans and zoning. For instance,if currently business zoned property is in a business park or being occupied by other office uses,is the owner really willing or likely to convert the property to a residential use if the city's general plan is changed to residential?Or,what if the land is burdened by a hazard or a brownfield—is it really available to meet the housing needs and needs?If the city rezones to residential,what are honest prospects of the property overcoming these obstacles in a 20-year period? I believe we need to ensure we can reconcile current state law on LAFCO and housing element law with the increasing use of urban growth boundaries in California. To avoid leapfrog sprawl growth out of one county into neighboring counties—and to provide the ample supply of housing required to enable jobs growth and economic vitality in an increasingly global economy,we need to ask how we can plan cooperatively for the housing inventory needed and deal with urban limit lines when they are not working. Board of Supervisors May 4,2004 Page 4 Given the fact that state taxpayers and the state budget are picking up the financial and economic consequences of such multi-county sprawl development,I believe the state has a very direct interest in the outcome of this debate. Finally,I appreciate the interest in pursuing an alliance for housing and for urban infill—to assist in an ongoing way in finding solutions to the housing crisis we face in our county and the state. As you know,I have a long track record of supporting more housing supply--in the right locations and with proper mitigations—to deal with the price crisis and to restore the California dream of owning a home. If we fail to create the right inventory of land for housing,rents and mortgages will continue to shoot through the roof. This would create a situation that,as the Contra Costa Times noted in a March 31st editorial,"drive[s]corporations away from the Bay Area...and drive[s]job-producing companies from locating here." I also look forward to developing further the concepts we have discussed in an effort to establish a housing support team in Contra Costa County. I believe such a coalition effort will help all of us achieve our extremely important housing goals. Thank you again for all of your feedback. I appreciate your efforts and look forward to continuing to work with you to meet the needs of our shared constituents. Sincerely, / X� Tom Torlakson