36 Staff Report - Pocket Annexations ProgramCOUNCIL AGENDA REPORT
DATE: June 3, 1999
TO: MAYOR AND TOWN CQUN
FROM: TOWN MANAGER
SUBJECT:
MEETING DATE: 6/7/99
ITEM NO.
CONSIDER WORKING WITH SANTA CLARA COUNTY ON THE POCKET
ANNEXATIONS PROGRAM
RECOMMENDATION:
Consider the request of the County of Santa Clara and allow the Planning Department staff to work with the County
Planning Department staff on the Pocket Annexation project.
BACKGROUND:
The Santa Clara County Board of Supervisors has charged the County Planning Department to work together with the
staffs of the various cities in the County to aggressively eliminate the approximately 126 pockets of unincorporated areas
within each city's boundaries. In Los Gatos, this is eight pockets with 1,231 parcels and 1,702 acres. Only the City of
San Jose has more unincorporated parcels than Los Gatos. Just recently, this program successfully eliminated a
patchwork pocket in the City of Cupertino, through a series of community meetings and mailing of an information
booklet. This pocket was eliminated without the need for an election. However, because Cupertino has assessment
districts, an election was required, in conformance with Proposition 218.
DISCUSSION:
The Planning Department has been approached by the Santa Clara County Planning Department staff to help them to
eliminate the pockets of unincorporated area surrounded by the Town. Unlike the last time the Town tried to annex
these areas, this time Santa Clara County will be working with us to accomplish the annexations. Generally, there are
five unincorporated pockets within the Town; La Rinconada, Blossom Hill Manor, the Shannon -Kennedy -Englewood
area, the southeast hillside area (Shannon -Kennedy -Hicks) and the south-central hillside area (Foster Road -Aztec
Ridge). At this time, the Planning Department staff has agreed to work on the three urban areas; La Rinconada, Blossom
Hill Manor and Shannon -Kennedy -Englewood.
The County Planning Department staff has put together a very aggressive schedule of community meetings, booklet
mailings and public hearings before the Council. This schedule is geared to meet the December 1 filing deadline for
the State Board of Equalization (SBE). If the approved annexations are sent to the SBE by December 1, 1999, the Town
will begin receiving property tax revenue and State subventions in the 2000-2001 tax year. If the annexations are
approved after that date, the Town will not begin to receive this revenue until 2001-2002. For such large, dense areas,
this can be a significant amount of revenue and cost to the Town until we begin to receive those moneys.
PREPARED BY:
Reviewed by:
(Continued on Page 2)
LEE E. BOWMAN/61Ic—,
PLANNING DIRECTOR
..laAttorne� ' mance Revised: 6/3/99 3:27 pm
Reformatted: 10/23/95
PAGE 2
MAYOR AND TOWN COUNCIL
SUBJECT: POCKET ANNEXATIONS
June 3, 1999
In 1990-1991, the Town offered to annex these same areas. At that time, only the "North 40" area was annexed. The
residents of La Rinconada, Blossom Hill Manor and Shannon -Kennedy -Englewood preferred not to annex.
One of the first steps the process will be a joint letter from the Board of Supervisors and the Town Council. In addition
to explaining the program, the letter will announce dates for community meetings to discuss the pros and cons of
annexation and the process. Town staff will be available to answer questions and to pass out the "Annexation Answer
Book" currently being prepared.
Although the answer book should answer the most commonly asked questions, staff needs Council input on the subject
of projects in process. While we are undertaking the annexation process, there will undoubtedly be property owners
who are proposing some type of work on their property. These projects could range from simple first floor building
additions to subdivisions. For some of these projects, annexation may be required. Other projects may not require
annexation. The County and Town staffs propose the following recommendations to deal with projects that are proposed
during the annexation process: 1) Projects that would have triggered annexation should be processed by the Town
while the annexation process is proceeding. If the annexation in the project area fails, the developer would be required
to annex. 2) There should be no "moratorium" on projects during the annexation process. 3) If a project doesn't
require annexation, the project should be completed by the County.
There is another option that could be taken with recommendation 3. The Town could honor the County Planning
Department approval and issue building permits based on the County's approval and conditions. However, both staffs
feel that once a building permit has been issued by the County, the County should perform all inspections and issue the
Certificate of Occupancy.
CONCLUSION:
Annexation of these County "pockets" with provide uniform regulations to areas that are truly considered part of the
Town. Residents of these areas will then have the same rights as other members of the community in voting in Town
elections. With the cooperation of the County, annexation of these areas are more likely.
ENVIRONMENTAL ASSESSMENTS:
Annexations are exempt for the California Environmental Quality Act guidelines, pursuant to Section 15061(b)(3).
FISCAL IMPACT:
One of the more costly parts of the pocket annexation program will be preparing descriptions and maps of the
annexation areas. These documents will have to be prepared by our engineering consultant, Willdan Associates, before
being sent to the County Surveyors Office for review and conformance with State Board of Equalization and County
Road Annexation Policies. Willdan's charges will be based on the actual time required to preform the work. We are
estimating that this will cost approximately $2,500 per annexation. Additionally, there will be costs for printing labels
and mailing the joint letter, annexation answer book, community meeting notices and public hearing notices. It is
unknown what those costs will be at this time. Because the County has a printing department, they will be printing all
booklets and information sheets, at no cost to the Town.
The following fees are assessed by Santa Clara County, LAFCO and the State Board of Equalization for each annexation
and will be paid by the Town from Account No. 1111-61054, in the 1999-2000 fiscal year.
Map, Legal Description and Guideline Checking Fees $1,365.00
PAGE 3
MAYOR AND TOWN COUNCIL
SUBJECT: POCKET ANNEXATIONS
June 3, 1999
LAFCO Processing Fee 225.00
County Assessor's Review Fee 300.00
State Board of Equalization Fee 800.00
TOTAL FEES $2,690.00
Willdan cost (estimate) 2,500.00
COSTS PER ANNEXATION $ 5,190.00
TOTAL FEES & CONSULTANT COST $15,570.00
Because the Town only receives 9¢ per hundred dollars of assessed value from property taxes, these annexations will
increase our service cost beyond the new revenue they produce. This is also the case with all existing residential
development within the Town. The Town will collect $450 in property taxes from a house with an assessed value of
$500,000. There are about 70 lots in the La Rinconada area, about 400 Lots in the Blossom Hill Manor area and about
100 lots in the Shannon -Kennedy -Englewood area. In addition to property tax revenue, the Town would also receive
additional funds in State subventions.
Attachments:
1. Draft schedule
Distribution:
Don Widen, Santa Clara County Planning Department
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ATTACHMEN ' 1
Town Council Minutes June 7, 1999
Redevelopment Agency Los Gatos, California
POCKET ANNEXATIONS PROGRAM CONT.
Councilmember Attaway noted that it costs the Town more in allocated services than is
reimbursed to the Town through property taxes. He spoke of the 13 cents on the dollar that it
costs the Town to supply service compared to the 9 cents on the dollar received in property
taxes. He would like to know the total cost to the Town for accepting the proposed pockets.
He asked that the County consider what it can do to guarantee the implementation of a hillside
plan that meets our Town standards and answers our issues.
Council consensus to continue to explore the issues of annexations and to have Town and
County staff work on the project.
ZONING CODE AMENDMENT A-98-04/HEIGHT & GRADE DEFINED
ORDINANCE INTRODUCTION/FENCES, HEDGES & WALLS (37.46)
Vice -Mayor Blanton stated that this was the time and place duly noted for introduction of a
corrected ordinance amending Ordinance 2049; Town Code Section 29.10.020 (definitions for
finished floor, finished grade, natural grade, and height); Section 29.10.090 (height restriction,
exceptions); and Section 29.40.030 (fences, hedges and walls). Zoning Code Amend A-98-04.
The Town Clerk read the Title of the Proposed Ordinance.
Motion by Mr. Pirzynski, seconded by Mr. Attaway, to waive the reading of the Proposed
Ordinance. Carried by a vote of 4 ayes. Mr. Hutchins absent.
Motion by Mrs. Lubeck, seconded by Mr. Attaway, that Council introduce Proposed Ordinance
entitled, ORDINANCE OF THE TOWN OF LOS GATOS AMENDING ORDINANCE 2049 -
TOWN CODE SECTION 29.10.020 (DEFINITIONS FOR FINISHED FLOOR, FINISHED
GRADE. NATURAL GRADE, AND HEIGHT); SECTION 29.10.090 (HEIGHT RESTRICTION,
EXCEPTIONS); AND SECTION 29.40.030 (FENCES, HEDGES AND WALLS). Carried by
a vote of 4 ayes. Mr. Hutchins absent.
COUNCIL MEETING SCHEDULE (38.10)
Council consensus to try to eliminate the August 16, 1999 meeting due to vacation schedules.
ADJOURNMENT
Motion by Mr. Attaway, seconded by Mr. Pirzynski, to adjourn tonight's meeting at 9:30 p.m.
Carried by a vote of 4 ayes. Mr. Hutchins absent.
ATTEST:
Marian V. Cosgrove
Town Clerk
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Town Council Minutes June 7, 1999
Redevelopment Agency Los Gatos, California
HEARINGS CONTINUED
GEMINI COURT BENEFIT ZONE/L&L DISTRICT #1/RESO 1999-79/HEARING (34.28)
Vice -Mayor Blanton stated that this was the time and place duly noted for public hearing to
consider adopting Resolution of Intention for Levy and Collection of Annual Assessments for
Fiscal Year 1999-2000 in the Landscaping and Lighting District #2 - Gemini Court Benefit Zone
and to set public hearing to consider the proposed assessments.
There was no one from the audience to speak on this issue.
Motion by Mr. Pirzynski, seconded by Mrs. Lubeck, to close the public hearing. Carried by
a vote of 4 ayes. Mr. Hutchins absent.
Motion by Mr. Pirzynski, seconded by Mr. Attaway, that Council adopt Resolution 1999-79
entitled, RESOLUTION OF THE TOWN OF LOS GATOS OF ITS INTENTION TO LEVY AND
COLLECT ASSESSMENTS FOR FISCAL YEAR 1999-2000 IN LANDSCAPING AND
LIGHTING ASSESSMENT DISTRICT #2 - GEMINI COURT BENEFIT ZONE - AND SET
A PUBLIC MEETING AND PUBLIC HEARING TO CONSIDER THE PROPOSED
ASSESSMENTS. Carried by a vote of 4 ayes. Mr. Hutchins absent.
PARKING GARAGE FUNDING/OPINION SURVEY (35.40)
Vice -Mayor Blanton stated that this was the time and place duly noted to consider proposals to
conduct public opinion survey regarding parking garage funding and consider authorizing the
Town Manager to enter into a contract to perform the survey.
The following person from the audience spoke to this issue:
Diane McNutt, representing the Los Gatos Chamber of Commerce, asked that Council consider
the request for a statistically accurate informational document analyzing downtown parking
considering factors of how often an individual uses the parking; how old is that person; are they
property owners; are they residents; extrapolate real information regarding the community and
its association with downtown parking.
No one else from the audience addressed this issue.
Council consensus to have the Town Manager review the proposals and return to Council with
a report and evaluation of the consultants.
POCKET ANNEXATIONS PROGRAM/SANTA CLARA COUNTY (36.14)
Vice -Mayor Blanton stated that this was the time and place duly noted to consider the request
of the County of Santa Clara and allow the Planning Department staff to work with the County
Planning Department staff on the Pocket Annexation.Project.
Don Wein, from Santa Clara County Planning Department, spoke of the cooperative reasons for
the County to aid the Town in acquiring pocket annexations. Consistent planning control
throughout urban service area, interest of residents to be included in community identity,
consistency with joint hillside plans, implementation of coordinated planning efforts were
mentioned.
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