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HomeMy WebLinkAboutMINUTES - 05162006 - C.45 TO: BOARD OF SUPERVISORS `' � == ,, Contra FROM: John Cullen, County Administrator x :iu 'z Costa DATE: May 16, 2006 °°STA--oUn- `Pv Count y SUBJECT: Proposed East Cypress Corridor Boundary Reorganization SPECIFIC REQUEST(S)OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION RECOMMENDATION: 1. ADOPT attached Resolution Nos. 2006/276, 2006/277, and 2006/278 determining Property Tax Transfer Agreements for the allocation of property taxes for the proposed East Cypress Corridor Boundary Reorganization Areas, and; 2. APPROVE and AUTHORIZE the Chair, Board of Supervisors, to execute the attached Transition Agreement with the City of Oakley for the proposed East Cypress Corridor Boundary Reorganization Areas. FISCAL IMPACT: Both the County and City have agreed to use the existing Master Property Tax Agreement. Under the terms of that Agreement, the City shall be allocated 20.77% of the County's base tax and 41.55% of the County's annual tax increment allocation factor. The Annexation Areas are entirely within the City's Sphere of Influence, and once annexed and development begins the County will realize growth in its property tax revenue that it may not have otherwise received. In addition, the Transition Agreement includes provisions that the City will collect and contribute: • Approximately $27 million in fees towards a road enhancement program; $4.4 million in affordable housing fees; • $2.7 million towards the construction of the Bethel Island Bridge; • $300,000 for the County Homeless Trust Fund; • $90,000 to be used to augment library services in Oakley, and; • $33,000 in open space and agriculture protection fees. CONTINUED ON ATTACHMENT: 1/ YES SIGNATU E: ` RECOMMENDATION OF COUNTY ADMINISTRATOR ECOMMENDATION OF COMMITTEE APPROVE OTHER SIGNATURE(S): ACTION OF BOARD ON aij APPROVED AS RECOMMENDED i� OTHER Phase, !;et, VOTE OF SUPERVISORS I HEREBY CERTIFY THAT THIS IS A TRUE AND CORRECT COPY OF AN ACTION TAKEN AND ENTERED ON MINUTES OF THE BOARD OF SUPERVISORS ON THE DATE SHOWN. UNANIMOUS(ABSENT hew ) AYES: NOES: ABSENT: ABSTAIN: Contact: Rich Seithel(5-1024) / n cc: County Administrator ATTESTED d ul City of Oakley JOHN C N,CLERK OF THE BOARD OFSUPERVISORS LAFCO Public Works Community Development BY: DEPUTY Building Inspection Auditor Controller County Counsel I BACKGROUND: The City of Oakley filed applications with LAFCO (LAFCO 06-04,06-05, and 06-06) to annex an unincorporated area known as the East Cypress Corridor that is within the City's sphere of influence and the County's urban limit line, consisting of approximately 2,456 acres of land located south of Dutch Slough, west of Sandmound Slough, and northeast of the Contra Costa Canal. For purposes of its annexation applications, the City divided the East Cypress Corridor into three areas: Area 1 is composed largely of undeveloped parcels in the East Cypress Corridor; Area 2 consists of approximately 44.71 acres of largely developed land located east of Jersey Island Road and south of East Cypress Road, and; Area 3 consists of 512.3 acres of largely developed land located east of Jersey Island Road, south of Dutch Slough, west of Sandmound Slough and north of Rock Slough and the Contra Costa Canal. The City adopted Resolution Number 18-06 agreeing to the utilization of the master property tax exchange factors for the three annexations. Furthermore, the City and the County met to discuss the proposed annexations and identified potential issues. These issues were: 1. Potential creation of unincorporated pockets or islands; 2. Local match funding for the Bethel Island Bridge; 3. Need for a Rock Slough Bridge/Byron Highway Extension; 4. Need for a roadway enhancement program for far East County; 5. Assurance that the annexation would not adversely impact unincorporated facilities regarding master flood control and storm drainage systems; 6. Commitment to participating in the Habitat Conservation Plan, and; 7. Timing of the transition of active development projects to the City. The attached Transition Agreement addresses the above issues and recommended mitigations. In addition, attached Resolution Nos. 2006/276 through 278 confirms that the existing master property tax exchange agreement factors will apply. THE BOARD OF SUPERVISORS OF CONTRA COSTA COUNTY, CALIFORNIA Adopted this Resolution on May 16, 2006, by the following vote: AYES: Uilkema,Piepho,DeSaulnier,Glover and Gioia NOES: None ABSENT: None ABSTAIN: None Resolution No. 2006/276 Subject: Determination of Property Tax Exchange for the Proposed East Cypress Corridor Boundary Reorganization Area I WHEREAS, Section 99 of the Revenue and Taxation Code provides that the City and County shall agree by resolution to exchange property tax revenues among themselves and any affected agencies in the event of a jurisdictional change; and WHEREAS, the East Cypress Corridor Boundary Reorganization Area I (LAFCo 06-03) involving annexation of territory to the City of Oakley is excluded from the application of the master property tax transfer agreement between the City and the County because the assessed value of the affected territory exceeds $10,000,000; and WHEREAS, the Diablo Water District has agreed to zero property tax exchange transfer; and there is an existing agreement with the Contra Costa Water District (County Resolution 92/219); and WHEREAS, the City of Oakley and the County have agreed that, notwithstanding the amount of the assessed value and the sales tax revenue related to the territory of the subject reorganization, the master property tax transfer agreement(County Resolution 2004/594)shall apply to the reorganization. NOW, THEREFORE, BE IT BY THE BOARD OF SUPERVISORS OF CONTRA COSTA COUNTY RESOLVED that in accordance with Section 99 of the Revenue and Taxation Code the property tax transfer for the affected agencies in the area of the East Cypress Corridor Boundary Reorganization Area I (LAFCo 06-03) shall be in accordance with the master property tax agreement. I hereby certify that this is a true and correct copy of an action taken and entered on the minutes of the Board of Supervisors on the date shown: ATTESTED:cI dt JOHN CULLEN, Jerk of the Board of Supervisors and County Administrator By Deputy Contact: Rich Seithel, CAO cc: County Administrator Auditor-Controller County Counsel Community Development City of Oakley THE BOARD OF SUPERVISORS OF CONTRA COSTA COUNTY, CALIFORNIA Adopted this Resolution on May 16, 2006, by the following vote: AYES: Uilkema,Piepho,DeSaulnier,Glover and Gioia NOES: None ABSENT: None ABSTAIN: None Resolution No. 2006/277 Subject: Determination of Property Tax Exchange for the Proposed East Cypress Corridor Boundary Reorganization Area II WHEREAS, Section 99 of the Revenue and Taxation Code provides that the City and County shall agree by resolution to exchange property tax revenues among themselves and any affected agencies in the event of a jurisdictional change; and WHEREAS, the Diablo Water District has agreed to zero property tax exchange transfer and the Contra Costa Water District has an existing master property tax exchange agreement (County Resolution 92/219); and WHEREAS, the City of Oakley and the County have agreed that the master property tax transfer agreement (County Resolution 2004/594) shall apply to the reorganization. NOW, THEREFORE, BE IT BY THE BOARD OF SUPERVISORS OF CONTRA COSTA COUNTY RESOLVED that in accordance with Section 99 of the Revenue and Taxation Code the property tax transfer for the affected agencies in the area of the East Cypress Corridor Boundary Reorganization Area II (LAFCo 06-04) shall be in accordance with the master property tax agreement. I hereby certify that this is a true and correct copy of an action taken and entered on the minutes of the Board of Supervisors on thedd�atte�e ccs��hppown: ATTESTED: 4 '7z-� JOHN CULLEN, Clerk of the Board of Supervisors and County Administrator a By o Deputy Contact: Rich Seithel, CAO cc: County Administrator Auditor-Controller County Counsel Community Development City of Oakley Public Works THE BOARD OF SUPERVISORS OF CONTRA COSTA COUNTY, CALIFORNIA Adopted this Resolution on May 16, 2006, by the following vote: AYES: Uilkema,Piepho,DeSaulnier,Glover and Gioia NOES: None ABSENT: None ABSTAIN: None Resolution No. 2006/278 Subject: Determination of Property Tax Exchange for the Proposed East Cypress Corridor Boundary Reorganization Area III WHEREAS, Section 99 of the Revenue and Taxation Code provides that the City and County shall agree by resolution to exchange property tax revenues among themselves and any affected agencies in the event of a jurisdictional change; and WHEREAS, the East Cypress Corridor Boundary Reorganization Area III (LAFCo 06-05) involving annexation of territory to the City of Oakley is excluded from the application of the master property tax transfer agreement between the City and the County because the assessed value of the affected territory exceeds $10,000,000; and WHEREAS, the Diablo Water District has agreed to zero property tax exchange transfer and there is an existing master property tax transfer agreement with the Contra Costa Water District (County Resolution 92/219); and WHEREAS, the City of Oakley and the County have agreed that, notwithstanding the amount of the assessed value and the sales tax revenue related to the territory of the subject reorganization, the master property tax transfer agreement(County Resolution 204/594) shall apply to the reorganization. NOW, THEREFORE, BE IT BY THE BOARD OF SUPERVISORS OF CONTRA COSTA COUNTY RESOLVED that in accordance with Section 99 of the Revenue and Taxation Code the property tax transfer for the affected agencies in the area of the East Cypress Corridor Boundary Reorganization Area I (LAFCo 06-05) shall be in accordance with the master property tax agreement. I hereby certify that this is a true and correct copy of an action taken and entered on the minutes of the Board of Supervisors on the date shown: ATTESTED: JOHN CULLEN, Clerk of the Board of Supervisors and County Administrator ti By V Deputy Contact: Rich Seithel, CAO cc: County Administrator Auditor-Controller County Counsel Community Development City of Oakley AGREEMENT BETWEEN CONTRA COSTA COUNTY AND CITY OF OAKLEY RELATING TO TRANSITION OF MUNICIPAL SERVICES, COLLECTION OF FEES AND MAINTENANCE OF INFRASTRUCTURE UPON ANNEXATION OF THE EAST CYPRESS CORRIDOR SPECIFIC PLAN AREA This Agreement is entered into between the County of Contra Costa, a political subdivision of the.State of.California ("County") and the City of Oakley, a municipal corporation ("City"). The. above named entities may be known from time to time within this.Agreement as the "Parties." RECITALS A. In December 2002, the City Council of the City of Oakley approved the Oakley 2020 General Plan ("General Plan") and certified the Environmental Impact Report therefor (Resolution Nos. 76-02 and 75-02, respectively). The General Plan included as an "Expansion Area" the area commonly known as the East Cypress Corridor ("East Cypress Corridor"), which is approximately 2,546' acres of land located immediately east of the City of Oakley boundaries in Contra Costa County. The East Cypress Corridor contains vacant land, agricultural land, single-family homes, commercial uses, overhead power lines, natural gas wells, natural gas pipelines, irrigation canals, and Shea Homes' Summer Lake project ("Summer Lake" or "Shea Project"), which is currently under construction. The East Cypress Corridor includes those lands generally east of Jersey Island Road, south of Dutch Slough, west of Sandmound Slough, north of Rock Slough and northeast of the Contra Costa Canal. The City of Oakley General Plan contemplated and planned for annexation of the lands within the East Cypress Corridor to the City. B. On August 13, 2003, the Contra Costa Local Agency Formation Commission ("LAFCO") approved Resolution No. 03-16, which included the East Cypress Corridor within the City of Oakley's Sphere of Influence. C. In furtherance of the annexation of the East Cypress Corridor, the City of Oakley prepared an East Cypress Corridor Specific Plan ("Specific Plan") and East Cypress Corridor Specific Plan Environmental Impact Report ("EIR"), which analyzed the environmental impacts of the Specific Plan. The Specific Plan proposed planned development of mixed-uses for the 2,546-acre site. The project proposed to allow up to 5,6092 residential units (detached and attached The 2,546 acre figure is the acreage referenced in the East Cypress Corridor Specific Plan,Environmental Impact Report,and other documentation. On a technical note,an acreage calculation that includes portions of properties extending into the waterways of Dutch Slough and Sandmound Slough(such as marinas,boat docks,and low-tidelands),would result in a total of 2,607 acres. Annexation acreages to the City,CCWD and DWD are approximate,and subject to refinement through details of the official LAFCO application. 2 One hundred fifty residential units may replace up to 20 acres of the net 40 acres of the Village Center site,which results in a maximum development of 5,759 residential units. Page 1 of 15 AGREEMENT BETWEEN CONTRA COSTA COUNTY AND CITY OF OAKLEY FOR THE EAST CYPRESS CORRIDOR SPECIFIC PLAN AREA . 1 units), commercial uses, public schools (3 elementary, one middle), man-made lakes, open space/easements, existing and proposed gas well sites, wetlands/dunes, flood-control levees, parks (neighborhood and community), light industrial uses, commercial recreation uses, and a beach club. . D. For purposes of its annexation application, the City divided the East Cypress Corridor into three areas. The first area ("Area 1") is composed of largely undeveloped parcels in the East Cypress Corridor and is defined in more detail in Oakley City Council Resolution No. 32-06. Area 1 includes the Summer Lake project. The second area ("Area 2") consists of approximately 44.71 acres of largely developed land located east of Jersey Island Road and south of East Cypress Road and is defined in more detail in Oakley City Council Resolution No. 33-06. The third area ("Area 3") consists of 512.30 acres of largely developed land located east of Jersey Island Road, south of Dutch Slough, west of Sandmound Slough and north of Rock Slough and the Contra Costa Canal and is defined in more detail in Oakley City Council Resolution No. 34-06. The proposed annexations of Area 1, Area 2, and Area 3 shall hereinafter be referred to, respectively, as the "Area 1 Annexation," "Area 2 Annexation," and "Area 3 Annexation," and collectively as the "Annexations." E. On August 30, 2005, the City distributed the Specific Plan and Draft Environmental Impact Report ("DEIR"), dated August 29, 2005, to interested persons, organizations, and public agencies for a 45-day public review period and invited public comment, with the review period closing October 13, 2005. The City Council held a public hearing on October 10, 2005, at which interested persons were given an opportunity to comment on the DEIR. On December 23, 2005, the City Council issued,a "Notice of Availability of Recirculated Portions of Draft Environmental Impact Report (DEIR) for East Cypress Corridor Draft Specific Plan" and recirculated portions of the DEIR to local and regional agencies for review and invited public comment, with the review period closing February 6, 2006. A Final Environmental Impact Report ("FEIR") was distributed to interested persons, organizations, and public agencies on February 24, 2006. F. On September 12, 2005, the City Council adopted Resolution No. 89-05 providing Notice of Intent to LAFCO, the Contra Costa Water District ("CCWD"), and the Diablo Water District ("DWD") of the City's plans to initiate boundary reorganization proceedings for the East Cypress Corridor ("Annexation Proceedings") and subsequently provided copies of the preliminary application materials to LAFCO, CCWD and DWD. G. The City Planning Commission held a public hearing on February 28, 2006, at which it received a staff report and presentation; heard public testimony; and approved a resolution recommending that the City Council amend the General Plan, adopt the Specific Plan, certify the EIR, and approve an ordinance prezoning the East Cypress Corridor "SP-1". Page 2 of 15 AGREEMENT BETWEEN CONTRA COSTA COUNTY AND CITY OF OAKLEY FOR THE EAST CYPRESS CORRIDOR SPECIFIC PLAN AREA H. On March 13, 2006, the City Council conducted a noticed public hearing on the Annexation Proceedings, at which time all interested parties had the opportunity to be heard. The City Council considered the Environmental Impact Report, the City Planning Commission recommendations, and all written and oral testimony submitted at the public hearing. The Council then adopted Resolution No. 30-06, certifying the EIR as adequate and complete pursuant to the California Environmental Quality Act ("CEQA"); adopted Resolution. No. 31-06, making findings required by CEQA, amending the General Plan, and approving the Specific Plan; introduced Ordinance No. 03-06 prezoning the East Cypress Corridor "SP-1"; and adopted Resolution Nos. 32-06, 33-06 and 34-06, authorizing the submittal of boundary reorganization applications for the East Cypress Corridor. I. If the Annexations are approved, the Parties desire that the transition of municipal services, property and miscellaneous governmental obligations be as smooth as possible with no noticeable reduction in quality of services to residents. In the event that the Area 2 Annexation or Area 3 Annexation is unsuccessful, this Agreement is intended to set forth the obligations and responsibilities of the Parties to provide services to the unincorporated areas within the City's Sphere of Influence. J. In anticipation of the Area 1 Annexation, City negotiated a Development Agreement with Shea Homes, which addresses issues such as the payment of fees by Shea Homes, including development impact fees, after the completion of the Annexations. The Summer Lake project is located north and south of East Cypress Road. Shea Homes is processing the southern portion ("Summer Lake South") in three phases, referred to as Unit 1A, Unit 1 B; and Unit 2. Shea Homes is presently constructing the project in Units 1 A and 1 B and is processing its final map for Unit 2. Shea Homes has expressed an interest in amending its tentative map for the portion of Summer Lake north of East Cypress Road ("Summer Lake North") prior to development, if the Area 1 Annexation is approved. K. City and County negotiated a property tax exchange agreement in conjunction with the City's Annexation applications. The City Council adopted Resolution No. 18-06, setting forth the City's agreement for property tax exchange for the East Cypress Corridor. L. City and County desire to set forth further mutual agreements concerning the above-stated recitals to guide the Parties with respect to major issues concerning the Parties that may occur as a result of the Annexations, including the transition of certain municipal services, real property, maintenance obligations and responsibilities concerning the proposed Annexations. In the event that other such issues arise as a result of the Annexations, the Parties shall cooperate with Page 3 of 15 AGREEMENT BETWEEN CONTRA COSTA COUNTY AND CITY OF OAKLEY FOR THE EAST CYPRESS CORRIDOR SPECIFIC PLAN AREA each other to resolve those issues and enter into such other agreements as may be necessary to further the purposes of this Agreement. M. Nothing contained in this Agreement is intended, nor shall it be construed, to amend or supersede any previous tax sharing or other agreements between the Parties, including but not limited to the July 25, 2000, municipal services agreement between County and City, or any amendments to such agreements. In the event of a conflict, the earlier agreement will control unless the Parties otherwise agree in writing. AGREEMENT Section 1: Recitals The foregoing recitals are true and correct and are made a part hereof. Section 2. Continuation of services to un-annexed area City and County acknowledge the possibility that a majority of property owners may vote against the Area 2 Annexation or Area 3 Annexation, leaving unincorporated areas adjacent to the City. If this occurs, municipal services shall continue to be provided to such area, either (1) by County or (2) by City, upon request of County. If County requests City to provide these services, City will provide some or all of the municipal services that it would have provided to such area if the voters in such area had voted to annex to the City. Such services may include, but are not limited to, any combination of the following: • Park and landscaping maintenance; • Street naming and numbering; • Street light services in coordination and cooperation with PG&E; • Business license tax collection services; • National Pollutant Discharge Elimination System services; • Building plan check, permit issuance, and code enforcement inspection services; • Street maintenance services; • Parking citation; and • Police services. If County requests that City provide services to Area 2 and/or Area 3, the Parties agree to confirm these obligations and clarify the details thereof through a separate agreement prior to City providing services. Section 3. Bethel Island Bridge Page 4 of 15 AGREEMENT BETWEEN CONTRA COSTA COUNTY AND CITY OF OAKLEY FOR THE EAST CYPRESS CORRIDOR SPECIFIC PLAN AREA A. City Contribution. City shall contribute $2.7 million to.the construction of the Bethel Island Bridge Replacement Project (County Project#0662-6 R4043-02)("Project") to make up a $2.7 million gap in local matching funds. In no event shall City be obligated to pay the $2.7 million local matching funds from the City's. General Fund. City has the option to make its contribution as either a one-time payment of$2.7 million, to be paid at award of the Project contract, or as progress payments, to be paid as needed and based upon actual construction expenditures, not to exceed the $2.7 million cap. Although County presently expects that funding contributions may be necessary as early as the spring of 2007, County agrees to develop for City a schedule of anticipated funding disbursements and to refine the construction schedule for Project as it proceeds. B. Rights and Responsibilities. County shall continue to be lead agency in performing all design, Right of Way ("ROW") acquisition, construction and administration of Bethel Island Bridge. City may review and recommend revisions to all aspects of design, ROW acquisition, construction and administration of the Project related to that portion of Bethel Island Bridge, and its approaches, that it will ultimately maintain. County has the power to acquire such property interests as are necessary for the Project within City's jurisdiction, including but not limited to through the exercise of the power of eminent domain. City shall cooperate with County in its efforts to acquire such property interests. C. Joint Exercise of Powers. The Parties shall negotiate and consider a joint exercise of powers agreement to further define the powers, roles and responsibilities of the Parties with respect to the Project. Section 4. Rock Slough Bridge / Byron Highway Extension Construction and Implementation The Rock Slough Bridge / Byron Highway Extension is identified in EIR Mitigation Measure 3.13-4 as mitigation for traffic conditions along East Cypress Road. A: Rights and Responsibilities. City shall lead all design, ROW acquisition, construction and administration of the Rock Slough;Bridge / Byron Highway Extension Project. County may review and recommend revisions to all aspects of design, ROW acquisition, construction and administration of the Rock Slough Bridge / Byron Highway Extension Project related to those portions of Page 5 of 15 AGREEMENT BETWEEN CONTRA COSTA COUNTY AND CITY OF OAKLEY FOR THE EAST CYPRESS CORRIDOR SPECIFIC PLAN AREA the Rock Slough Bridge and its approaches and the Byron Highway extension that it will ultimately maintain. As described in Mitigation Measure 3.13-4, City shall construct a minimum of two lanes of roadway of the Byron Highway Extension and the Rock Slough Bridge before 20 percent of the residential development contemplated in the Specific Plan, or 800 residential units not including those in the Summer Lake, has been completed. The. exact width and configuration of each phase of the highway extension and the Rock Slough Bridge shall be determined through further engineering analysis. City further agrees to widen the Byron Highway Extension to four lanes before 80 percent of the residential development contemplated in the Specific Plan, or 3,100 units, not including Summer Lake, have been completed. B. Joint Exercise of Powers. The Parties shall negotiate and consider a joint exercise of powers agreement to further define the powers with respect to the Rock Slough Bridge / Byron Highway. Extension Project. Section 5. Roadway Enhancements Program A. Establishment of Program. The Parties agree to work cooperatively in good faith to establish a roadway improvement program ("Program") to fund the construction of capacity enhancements at specific intersection and the improvement of certain roadway segments to County Rural Road standards and to encourage other public agencies to participate in the Program. The Parties shall use their best efforts to establish the program within 24 months of the recording of a certificate of completion for the.Area 1 Annexation ("Area 1 Annexation Record Date"). Establishment of the Program shall include, but is necessarily limited to, (1) a traffic study of the proportional impacts of new development and associated nexus analysis pursuant to applicable law; (2) development of a list of improvements to be funded by the Program ("Projects"); (3) approvals of resolutions or ordinances establishing development fees to fund the Projects ("Fees"); and (4) approval of a Joint Exercise of Powers Agreement between the Parties, setting forth their respective obligations regarding the collection, transfer, use and management of fee revenues generated for the Projects. B. Proiects. The Projects shall be determined by County and City in consultation with each other. A preliminary list of Projects is set forth in Exhibit A, incorporated by reference herein. The list may be amended to delete certain improvements from, or add other improvements to, the list of Projects, based on the results of the traffic study which will include a technical analysis of proportional impacts of new development in far East County, including undeveloped and unentitled land within Oakley, Brentwood, and unincorporated Contra Costa County and in any other jurisdiction to the extent that such Page 6 of 15 AGREEMENT BETWEEN CONTRA COSTA COUNTY AND CITY OF OAKLEY FOR THE EAST CYPRESS CORRIDOR SPECIFIC PLAN AREA development is found to contribute to the need,for the Projects ("Program participants"). The City, County and Program participants will collaborate on the relative priorities of the Projects. C. Incorporation into Existing Fee Programs. Notwithstanding anything herein to the contrary, the Parties shall seek incorporation of some or all of the Projects into appropriate existing regional fee programs, such as the Regional Transportation Development Impact Mitigation (RTDIM) fee program administered by the East County Regional Fee.and Financing Authority (ECCRFFA), provided that, upon such incorporation, the Projects would be scheduled for completion within a timeframe acceptable to the Parties. If all of the Projects are incorporated into one or more existing fee programs, to the satisfaction of the Parties, the Parties shall be automatically relieved of any further obligations under this Section 5. D. City Obligations. To the extent legally permitted, City shall: 1. Participate in developing the final list of Projects, including planning level cost estimates based on current construction costs, with the County and any other Program participants. 2. Prepare a traffic impact analysis, utilizing a transportation consultant to be agreed upon by the Parties, within six months of the Area 1 Annexation Record Date, which estimates the potential future development in far East County. The analysis will estimate existing traffic deficiencies and assess the proportional impacts of new development in each jurisdiction in order to determine fair share contributions of new development in each agency's jurisdiction for each of the Projects. 3. Identify any existing fee programs, trust accounts, entitled projects, deferred improvement agreements, or other funding sources in the City that may be incorporated into or applied to the Program. 4. Impose conditions of approval or include language in negotiated agreements obligating developments within the East Cypress Corridor Specific Plan Area to (1) pay their fair share of the cost of the Projects or (2) construct improvements on the list of Projects, in which case the fair share contribution shall be based on the Program estimate of the cost of such improvements. The language will include the provision that if any such development requests building permits prior to establishment of Fees, the developer shall satisfy their fair share contribution through construction of improvements on the list of Projects or payment into a trust fund, the funds to be utilized once the Program is established. 5. Until such time that Fees are established, City shall use every means possible to obligate developers to participate in the Program, including adopting resolutions placing the developers on notice regarding the potential for Fees and, with respect to development agreements, establishing trust funds for prepayments. Page 7 of 15 AGREEMENT BETWEEN CONTRA COSTA COUNTY AND CITY OF OAKLEY FOR THE EAST CYPRESS CORRIDOR SPECIFIC PLAN AREA 6. Encourage the City of Brentwood, other interested agencies, and ECCRFFA to participate in the Program. 7. Consider the adoption of a resolution or ordinance establishing and imposing the Fees. 8. Participate in preparing a financing plan, and annual updates thereto, which will prioritize projects for construction and include a preliminary schedule of Projects based on forecasted Program revenues. E. County Obligations. To the extent legally permitted, County shall: 1. Participate in developing the final list of Projects, including planning level cost estimates based on current construction costs, with the City and any other Program participants. 2. Review and comment on the traffic analysis to be conducted by CITY. 3. Identify any existing fee programs,trust accounts, entitled projects, deferred improvements agreements, or other funding sources in the County that may be incorporated into or applied to the Program. 4. Consider amendments to the East County Area of Benefit("ECAOB")to require new developments to pay their fair share of the cost of the Projects, within nine months of the Area 1 Annexation Record Date. It is anticipated that such amendments will be interim measures pending establishment of the Program. 5. Participate in preparing a financing plan, and annual updates thereto, which will prioritize projects for construction and include a preliminary schedule of Projects'based on forecasted Program revenues. 6. Impose conditions of approval or include language in negotiated agreements obligating developments in the unincorporated portion of far East County to pay their fair share of the cost of the Projects. The language will include the provision that if any development in the unincorporated portion of far East County requests building permits prior to the establishment of fees to fund the Projects, the developer shall contribute their fair share through construction of improvements on the list of Projects or payment into a trust fund to be utilized once the Program is established. 7. Pursue all Regional, State, and Federal grants and transportation funds for which..the County may be eligible that may be used to fund the Projects. 8. Encourage the City of Brentwood, other public agencies, and_ECCRFFA to participate in the Program. 9. Consider the adoption of an ordinance establishing the Fees. 10. Aggressively pursue the completion of the Projects as funds become available. Section 6. Flood Control and Drainage Page 8 of 15 AGREEMENT BETWEEN CONTRA COSTA COUNTY AND CITY OF OAKLEY FOR THE EAST CYPRESS CORRIDOR SPECIFIC PLAN AREA City shall plan and design a master flood control and storm drainage system for the East Cypress Corridor. City agrees to supervise the development of the drainage master plans in coordination with the Contra Costa County Flood Control and Water Conservation District on a fee for service basis. Section 7. East County Habitat Conservation Plan City, a member of the East County Habitat Conservation Plan Association("HCPA"), will consider adoption of the HCP, when it is brought to the City Council for consideration. City agrees that development in the East Cypress Corridor is not in-fill development, as defined in the HCP. City agrees to support the efforts of East Cypress Corridor developers to enter into an agreement, in advance of the adoption of the HCP, that is mutually beneficial to the HCPA.and the developers. Section 8. Coordination of Transfer of Shea Homes Summer Lake Project A. Transition of Planning, Engineering and Building Processes If the Area 1 Annexation is approved, all planning, engineering, and building permit and plan processing and review for Summer Lake South shall be handled pursuant to the "City-County Summer Lake Transition Matrix," attached hereto as Exhibit B and incorporated herein by reference, as clarified and augmented by this section. 1. Building Permit and Plan Processing. (a) For all building permits already issued upon the date the certificate of completion is recorded for the Area 1 Annexation ("Area 1.Annexation Record Date"), County shall complete inspections of construction and final of permits. (b) 1f County is processing building permit applications upon the Area 1 Annexation Record Date, it shall stop processing. County shall direct applicants to resubmit building permit applications to the City. (c) If County is performing plan check upon the Area 1 Annexation Record Date, County shall stop work and forward its related files and redlined copies to the City for completion of review. City shall issue any related building permits. (d) City will process all building permit applications submitted after the Area 1 Annexation 'Record Date and conduct related building inspections. (e) If City requests proposals for building services from qualified consultants or agencies for Summer Lake South, City will accept and consider in good Page 9 of 15 AGREEMENT BETWEEN CONTRA COSTA COUNTY AND CITY OF OAKLEY FOR THE EAST CYPRESS CORRIDOR SPECIFIC PLAN AREA faith a proposal from the County to provide to City building-related services, including permit processing, plan check and building inspections. 2. Planning and engineering. (a) County shall transfer to City processing of planning and engineering applications already initiated upon the Area 1 Annexation Record Date. (b) City will process all applications for planning and engineering permits and plan reviews submitted after the Area 1 Annexation Record Date, as well as oversee compliance with permits and construction of infrastructure. B. Transfer of Fees 1. Collection and remittance of County fees by City. Upon the Area 1 Annexation Record Date, and assumption of control over issuance of building permits, City will collect from Shea and remit to County the following fees, based upon the anticipated 1,330 units in Summer Lake North and South: (a) Affordable Housing: City shall collect from Shea Homes and remit to County a $3,333 per-unit affordable housing fee ("Affordable Housing Fee") for all residential building permits that City issues for Summer Lake, pursuant to the conditions of approval. City requests that County set aside 20 percent of the Affordable Housing Fee revenue collected from Shea and provide those funds to City to assist with financing for the development of affordable housing on an 11.3-acre site within the East Cypress Corridor identified in the Specific Plan for affordable housing development (specifically, Planning Area 6=H). County agrees to consider City's request. County further agrees to expend the fee revenues referenced in this paragraph within East Contra Costa County._ (b) Homeless Trust Program: City shall collect from Shea and remit to County $225.56 per residential unit for the Homeless Trust Program, provided the funds are designated for use within East Contra Costa County. City shall document the distribution in the City's General Plan Housing Element. (c) Library: City shall collect from Shea $66.67 per residential unit to augment library services within Oakley. (d) Open Space/Agricultural Protection Fee: City shall collect from Shea and remit to County $25.00:per residential unit, subject to annual adjustment for inflation, as provided for in the conditions of approval. County agrees to expend the funds collected within East Contra Costa County. Page 10 of 15 AGREEMENT BETWEEN CONTRA COSTA COUNTY AND CITY OF OAKLEY FOR THE EAST CYPRESS CORRIDOR SPECIFIC PLAN AREA 2. Collection of Processing Fees. As of the Area 1 Annexation Record Date, where applicable, City will charge its then current fees for processing all permit applications and related services, including but not limited to, building permits and inspections, review of engineering plans, and processing of development applications. If City contracts with County for building-related services, City will pay County at agreed-upon rates. 3. Accounting for Collected Traffic Impact Fees. Pursuant to the terms of a joint exercise of powers agreement described in this Paragraph, County shall account for traffic impact fees collected as of the Area 1 Annexation Record Date from Shea Homes and remit to City those development impact fees that were intended for roadway improvement projects related to East Cypress Corridor development, pursuant to the April 21, 2001, revised County conditions of approval: 84.AT (Main/Cypress Intersection); 84.AU (Main/Neroly Intersection); 84.AV (Cypress-Laurel Connector); and 84.AZ (Byron Highway Extension). The parties shall negotiate and consider a joint exercise of powers agreement to define the powers, roles, and responsibilities with respect to the collection, transfer, management, and use of the fee revenues referenced in this paragraph. C. Ownership and Maintenance of Infrastructure The Parties agree to the transition, as of the Area 1 Annexation Record Date, of ownership and all inspection and maintenance obligations for infrastructure constructed as part of or in conjunction with Summer Lake South in accordance with Exhibit B. The Parties recognize that, if the Area 1 Annexation is approved, as Shea Homes completes build-out of Summer Lake South, questions may arise regarding County and City applicable standards for the design, construction, inspection, and acceptance, identified in Exhibit B. By way of example only, County standards for medians currently under construction on Bethel Island Road and East Cypress Road call for a solid concrete surface, whereas City's standards call for the installation of landscaping and irrigation. The Parties agree to inform each other about their respective standards and the status of the build-out of the Summer Lake South project. The Parties further agree that, as issues arise, they will discuss their respective interests in a good-faith effort to develop mutually agreeable solutions. Page 11 of 15 AGREEMENT BETWEEN CONTRA COSTA COUNTY AND CITY OF OAKLEY FOR THE EAST CYPRESS CORRIDOR SPECIFIC PLAN AREA Section 9. Coordination of Transfer of Other Planning, Engineering, and Building Projects and County Records and Files. A. Transition of Planning, Engineering and Building Projects As of the date a certificate of completion is recorded for any of the Annexations, the review of planning and engineering submittals, pending planning entitlement and public works applications, building plan check, building permit issuance, and building inspections for projects in the area referenced in such certificate, other than Summer Lake South, shall transition from County to City in the same manner as set forth in Section 8. A. of this Agreement. B. Transfer of Planning, Engineering, and Building Files Upon request by City, County shall deliver to City within 30 days all records, files and other documents in County's possession or control that relate to the portions of the East Cypress Corridor annexed to the City. The records, files and documents shall be those which are customarily transferred to a City upon annexation. Section 10. Notices. Whenever notice is required hereunder, it shall be given to the Parties as follows: City of Oakley: City Manager City of Oakley 3231 Main Street Oakley, CA 94561 County of Contra Costa: County Administrator 651 Pine Street, 10th Floor Martinez, CA 94553-1291 Section 11. Entire Agreement. This Agreement contains the entire Agreement between the Parties. No promise, representation, warranty, or covenant not included in the Agreement has been or is relied upon by any party hereto. Page 12 of 15 AGREEMENT BETWEEN CONTRA COSTA COUNTY AND CITY OF OAKLEY FOR THE EAST CYPRESS CORRIDOR SPECIFIC PLAN AREA Section 12. Effective Date and Term of Agreement. This Agreement shall become effective upon the recording of a certificate of completion for any of the Annexations (the "Effective Date"). This Agreement shall remain in effect from the Effective Date until the conditions of this Agreement have been met, to the satisfaction of the Parties (the "Term of Agreement").. Section 13. Amendment. This Agreement may only be amended by a writing signed by both Parties. Section 14. No Third Party Beneficiaries Nothing contained in this Agreement is intended, nor shall it be construed, to create rights inuring to the benefit of third parties. Section 15. Severability In the event that any provision herein is held to be invalid by any court of competent jurisdiction, the invalidity of any such provision shall not materially prejudice either County or City in its respective rights and obligations contained in the valid provisions of this Agreement. Section 16. Remedies The sole remedy for violation of this Agreement shall be the specific performance of this Agreement. County and City waive their respective rights to trial by jury of any claim or cause of action arising out of this Agreement. County and City shall have no liability for damages to one another or to any other person or entity resulting from any violation of this Agreement. Section 17. Dispute Resolution A. In General. This Section establishes the exclusive process by which disputes between the Parties concerning or relating to this Agreement shall be resolved. The dispute resolution process established herein shall apply to disputes related to the interpretation or enforcement of, or compliance with, the terms and provisions of this Agreement. Disputes that are not alleged to relate to the interpretation of, or compliance with, this Agreement are not subject to this Dispute Resolution Process. B. Informal Conferral. If a dispute arises as described above in Section 17.A., the Parties will first attempt to resolve it through informal discussions, which may include designated representatives of the staff of the Parties, at their discretion. Page 13 of 15 AGREEMENT BETWEEN CONTRA COSTA COUNTY AND CITY OF OAKLEY FOR THE EAST CYPRESS CORRIDOR SPECIFIC PLAN AREA C. Mediation. In the event a dispute cannot be resolved through informal conferral within twenty-one (21) calendar days, the aggrieved Party, acting through its governing body, shall give written notice to the other Party, setting forth the nature of and basis for the dispute and facts demonstrating that such Party is materially and adversely affected thereby. The Parties, acting through their designated representatives, including counsel, shall endeavor to settle the dispute by mediation. The Parties shall select a neutral third party with expertise in land use matters to mediate the dispute. D. Judicial Review. The dispute resolution process described above shall be undertaken in good faith and exhausted prior to resort to judicial review; provided, however, that by agreeing to this dispute resolution process, no Party hereby loses or waives its right to sue under any applicable statute of limitations or loses or waives its right to assert the operation of any applicable statute of limitations as an affirmative defense. In the event that an applicable statute of limitations would run during the . pendency of the dispute resolution process described above, the Parties shall agree in writing to toll such statute of limitations for such period as may reasonably.be necessary to complete the dispute resolution process, but in no event shall such statue of limitations be tolled for more than ninety (90) calendar days. E. Conduct of Judicial Review. Should any Party to this Agreement ultimately seek judicial review of a dispute concerning or relating to the implementation, interpretation or enforcement of, or compliance with, the terms and provisions of this Agreement, the Parties will submit to the jurisdiction of a court of competent jurisdiction; provided, however, that the Parties shall cooperate in seeking the appointment of a neutral Judge as defined in California Code of Civil Procedure section 394 to sit in Contra Costa County Superior Court, to preside over and decide any such dispute. Section 18. Construction This Agreement is the product of negotiation and preparation of the Parties. Any rule of construction to the effect that any ambiguity is to be resolved against the drafting party shall not be applied to the interpretation of this Agreement. Section 19. Counterparts This Agreement may be executed in counterparts and so executed shall constitute an Agreement which shall be binding upon all Parties hereto. A photocopy of the fully executed Agreement shall have the same force and effect as the original. Section 20. Voluntary Execution The Parties have freely and voluntarily executed this Agreement and are not acting under coercion, fraud, duress, menace, economic compulsion or undue Page 14 of 15 AGREEMENT BETWEEN CONTRA COSTA COUNTY AND CITY OF OAKLEY FOR THE EAST CYPRESS CORRIDOR SPECIFIC PLAN AREA influence, or because of any supposed disparity of bargaining power; rather, the Parties are freely and voluntarily signing this Agreement for their own benefit. Section 21. Signatures By affixing his/her signature below, each of the persons signing this Agreement warrants and represents that he/she has read and understands this Agreement, that he/she is authorized to sign this Agreement, and that the party on behalf of whom he/she signs agrees to be bound by its terms. CITY OF OAKLEY COUN Y OF CONTRA COSTA Brad Nix, Mayor C ai , Board of Supervisors Date Date Attest: Attest: John Cullen, Clerk-of the Board of Supervisors and County Administrator By: Nan %Oe blad, City Clerk Deput Date Date Approved as to Form: Approved as to Form: Silvano B. Marchesi County Csel ja___ B : City Attorney Dep xy 0 Date Dat Page 15 of 15 AGREEMENT BETWEEN CONTRA COSTA COUNTY AND CITY OF OAKLEY FOR THE EAST CYPRESS CORRIDOR SPECIFIC PLAN AREA l , EXHIBIT A PRELIMINARY PROJECT LIST The Projects to be funded by the roadway enhancement program referenced in Section 5 of the Agreement are as follows. Where applicable, the Mitigation Measures from the East Cypress Corridor Specific Plan FEIR are referenced in parentheses. Intersections: (1) Balfour Road/Byron Highway (MM 3.13-13), (2) Sellers Avenue/Delta Road (MM 3.13-20), (3) Knightsen Avenue/Delta Road (MM 3.13-21), (4) Byron Highway/Delta Road (MM 3.13-22), . (5) Sellers Avenue/Sunset Road (MM 3.13-23), (6) Sellers Avenue/Chestnut Avenue (MM 3.13.24), (7) Sellers Avenue/Balfour Road (MM 3.13-25), (8) Byron Highway/Point of Timber(MM 3.13-26), (9) Byron Highway/Camino Diablo (MM 3.13-27), (10) Bethel Island Road/Stone Road (MM 3.13-28), (11) Byron Highway/State Route 4 (MM 3.13.29), and (12) Sellers Avenue/Marsh Creek Road. Road Segments: (1) Knightsen Avenue from the Oakley limits to Delta Road, (2) Byron Highway from Delta Road to Camino Diablo, (3) Sellers Avenue from the Oakley limits to Chestnut and the ECCID Canal to Marsh Creek Road, (4) Delta Road from Sellers Avenue to Byron Highway, (5) Balfour Road from Sellers Avenue to Byron Highway, (6) Marsh Creek Road from Walnut Avenue to State Route 4, (7) Camino Diablo from Vasco Road to Byron Highway. EXHIBIT B CITY OF OAKLEY—CONTRA COSTA COUNTY TRANSITION MATRIX SHEA HOMES—SUMMER LAKE PROJECT County shall transfer to the City processing of planning and engineering applications already initiated upon the Area 1 Annexation Record Date. Notwithstanding, the County Public Works Department and City Public Works Department may collaborate on an alternative arrangement for the transition of improvements for the Summer Lakes Project under construction in order to facilitate the transition in a more efficient and logical manner for all parties involved. The following matrix represents an example of a logical transition given the construction status and information known at this time. Scope of Work—Item Description Trigger for Turn-Over to City of Oakley 1. Cypress Road Extension and The County will inspect, sign-off, accept and exonerate bonds Cypress/Bethel Intersection, Units la, (including Warranty Bonds) for all of the improvements included and lb Infrastructure Improvements. and covered by the County/Shea Homes subdivision improvement agreements. Upon exoneration of the improvement bonds and final acceptance by the County,full oversight and authority will transfer to the City. City requests that medians along East Cypress Road and Bethel Island Road be preserved for landscaping consistent with the East Cypress Corridor Specific Plan. City will review the landscape plans for the medians and,commit to initiate a funding mechanism .for landscaping and maintaining the medians. 2. Lake and Levee Grading—Summer Lake Upon exoneration of the improvement bonds and final acceptance South by the County,full oversight and authority will transfer to the City. 3. Sandmound Blvd Improvements County will complete the design approval .process, plan check and plan approval (if not already complete at time of annexation), inspect, sign-off, accept and exonerate bonds (including Warranty Bonds) for all of the improvements approved by the County= and covered by the County/Shea Homes subdivision improvement agreements. Upon exoneration of the improvement bonds and final acceptance by the County, full oversight and authority, will transfer to the City. AGREEMENT BETWEEN CONTRA COSTA COUNTY AND CITY OF OAKLEY FOR THE EAST CYPRESS CORRIDOR SPECIFIC PLAN AREA 4. Parks and Public Landscaping County Public Works Department and City Public Works Department will collaborate on logical transition of the • Main Sports Park improvements. • Neighborhood Parks in Phases 1A and 1B • Frontage Landscaping along Cypress Road Extension and Summer Lake Drive. 5. Parks and Public Landscaping City shall take over processing of Landscape construction documents for the Phase 2 park areas, including all oversight for • Neighborhood Parks in Phase 2 construction, inspection and acceptance of the landscape • Through-block Landscaping in improvements. If the annexation schedule is delayed such that Shea Phase 2 Homes must move forward with the design and construction of Parks and Public Landscaping improvements in order to meet the project requirements, this item will be reconsidered. County will continue to process necessary conceptual details as is required to complete the LL-2 landscape maintenance district formation. 6. Entrance Monumentation City will take over responsibility for entrance monumentation upon annexation. 7. Final Map for Unit#2 County Public Works Department and City Public Works Department will collaborate on logical transition of the final map. 8. Canoe Club(Swim Center/Beach Club) County will complete design approval process, plan check and plan approval, inspect, sign-off, accept and exonerate bonds (including Warranty Bonds) for all of the improvements included and covered by the County/Shea Homes subdivision improvement agreements. Upon issuance of final inspection (occupancy) by the County, full oversight and authority will transfer to the Cite. 9. Daycare Center Upon annexation, review and approval of the development application and oversight of the Day Care Center project will be turned over to the Cin,. AGREEMENT BETWEEN CONTRA COSTA COUNTY AND CITY OF OAKLEY FOR THE EAST CYPRESS CORRIDOR SPECIFIC PLAN AREA 10. Building Permits for Models and Any building permits issued as of the date of annexation will be the Production Homes responsibility of the County. Once occupancy has been granted by the County,oversight will transfer to the City. Building permits that have not been issued will be transferred to the City and reviewed, inspected and provided final occupancy permits by the City. 11. Model Sales Office Use Permits Upon annexation, City will require temporary use permits for additional model sales offices. 12. Levee Design—Summer Lake North Upon annexation, City will review design documents and issue the grading permit required to complete the levee. 13. South Pump Station Upon exoneration of the improvement bonds and final permit sign- off and acceptance by the County, full oversight and authority will transfer to the City. 14. Other Misc.Permits Upon exoneration of the improvement bonds and final permit sign- off and acceptance by the County, full oversight and authority will • Electrical Pedestal Permits for transfer to the City. Lake Sump Pumps Upon annexation, any miscellaneous permit applications that have not been submitted will be the responsibility of the City. 15. Project Theme Walls County Public Works Department and City Public Works Department will collaborate on logical transition. 16. \V(L PA Easement Linear Trail (HOA County Public Works Department and City Public Works Owned and Maintained) Department will collaborate on logical transition. 17. Private Landscape (front and rear yards) Upon annexation,responsibility shall be transferred to the City. and lllodel Homes Landscape and any Landscape Structures AGREEMENT BETWEEN CONTRA COSTA COUNTY AND CITY OF OAKLEY FOR THE EAST CYPRESS CORRIDOR SPECIFIC PLAN AREA ADDENDUM TO ITEM SD.1: C.45 MAY 169 2006 Supervisor Glover said it was a pleasure to pull C.45 from the agenda for discussion as so many times within the history of the County we hear the city and County have trouble agreeing upon matters. Supervisor Glover thanked County staff, Rich Seithel on behalf of the CAO, Department Heads, City Manager and Department Heads of the City of Oakley, noting they have come to a tax sharing agreement upon the annexation between County and the City of Oakley. He said he is proud to recognize that it is possible for a City and County to work together to come up with an agreement so everyone can walk away shaking hands. Supervisor Piepho gave recognition and appreciation to Supervisor Glover and to all concerned for their effort and cooperation toward reaching this agreement. Supervisor Piepho recognized that Oakley borders District III and District V and said that this agreement will have a great impact on the area. Honorable Brad Nix, Mayor of Oakley, said it is very clear this agreement will be a great benefit to all citizens and a great benefit to the County overall and shows a great trend towards future progress. He noted appreciation for all the efforts of Mr. Cullen, Dennis Barry of Community Development, Rich Seithel, and Heather Ballenger among others involved in this agreement. He also thanked the Board for their consideration. C.45 ADOPTED Resolution Nos. 2006/276, 2006/277, and 2006/278 determining property tax transfer agreements for the proposed East Cypress Boundary Reorganization Areas, and APPROVED and AUTHORIZED the Chair, Board of Supervisors,to execute a Transition Agreement with the City of Oakley regarding several issues, including the collection and disbursement of road fees, housing fees, County Homeless Trustfund, and area of benefit fees for the construction of the Bethel Island Bridge, as recommended by the County Administrator's Office. (District V) The item passed unanimously with all Board members present.