18 Staff Report - County Island Annexation ProcessDATE:
TO:
FROM:
COUNCIL AGENDA REPORT
AUGUST 10,2005
MAYOR AND TOWN COUNCIL
DEBRA J.FIGONE,TOWN MANAGER
MEETING DATE:08-15-05
ITEM NO.I g
SUBJECT:PROVIDE DIRECTION TO STAFF REGARDING PROCEEDING WITH
THE COUNTY ISLAND ANNEXATION PROCESS
RECOMMENDATION:
Provide direction to staff regarding proceeding with the County annexation process.Options for
consideration include:
1.Proceed with the annexation process for all eligible islands,including outreach and
communication to affected residents and property owners.
2.Wait for the County's affirmation of their willingness to adopt development standards for
lmincorporated islands that mirror Los Gatos'development standards before proceeding with
annexations.
3.Do not proceed with island annexations.
BACKGROUND:
On April 4,2005,the Town Council discussed the island mmexation process as it is presently
defined by revised State law,the policies of Santa Clara County related to the process,and the
opportunities for annexation of County islands in Los Gatos.
Revisions to state annexation laws took effect ort January 1,2005,with the most significant change
being that the annexation of an island may take place in any area not exceeding 150 acres in size
without the requirement to hold protest proceedings or elections.This provision is in effect until
January 1,2007.In Los Gatos,there are 16 islands of various sizes,with only one island (Blossom
Hill Manor)exceeding the 150 acre limit.The remaining 15 islands meet all the criteria required
p~S.~ukUL-.
PREPARED BY:PAMELA S.JACOBS
ASSISTANT TOWN MANAGER
N:\MGR\PJacobs\Administration\8-15-05 Annexation report.wpd
Reviewed by:__Assistant Town Manager JJJzrown Attorney Clerk Administrator
___.Finance __Community Development v Revised:8/l0/0~12:01 pm
Reformatted:5/30/02
PAGE 2
MAYORANDTOWNCOUNC~
SUBJECT:
(August 10,2005)
by the revised State law,and thus would be eligible to be annexed under the streamlined process.
Attachment 1 is a list and map depicting the locations of the unincorporated islands.The total
.estimated cost associated with the annexation process for these 15 islands noted in the April 4 th staff
report was $82,250 to $143,250 ($5,850 to $9,550 each).
DISCUSSION:
At the April 4th meeting,the Town Council directed staff to request additional information from the
County of Santa Clara regarding several issues concerning annexation and to request that the County
partner with the Town in minimizing the costs of annexation and in presenting a unified message
regarding annexation.Town staff subsequently discussed these matters with County staff through
written communication and meetings.
The County's Position Regarding Facilitating Island Annexations
The County Board of Supervisors has also discussed the issue of island annexations and the role of
the County in encouraging and facilitating the island annexations.Initial County support for
annexations was provided shortly after the revisions to State law through the Local Agency
Formation Commission of Santa Clara County (LAFCO)when it adopted Island Annexation Policies
to encourage cities to take advantage ofthe streamlined process and approved a LAFCO fee waiver
($670 per island in addition to the estimated cost noted earlier).
In July,the Town received a letter from the County Executive,Pete Kutras,notifying the Town that
the Board of Supervisors had agreed to facilitate island annexations by subsidizing the cities'costs
associated with the annexation process (County surveyor mapping and review and Board of
Equalization filing fee)and by providing street improvements in the areas annexed.A subsequent
telephone call from LAFCO staff confirmed that the County would cover the County-related cost
for the County Assessor's review.Ofthe total $82,250 to $143,250 estimated costs in the April 4th
staff report,a cost of approximately $750 per island ($11,250 for 15 islands)would remain the
responsibility of the Town for public hearing notices and outreach.Noticing for separate islands
could potentially be combined,thus not requiring a full $11,250 for this step.
According to County staff,the County has allocated sufficient funds to cover annexation of all
eligible islands in the county.The caveat is that the County will cover the costs for completed island
annexations only.In the event that any particular annexation is not completed,the Town will be
billed for the related costs.
With regard to the County'.s commitment to provide road improvements,the County will perform
a chip seal on all roads in the islands with a Pavement Condition Index (PCI)below 70.The chip
seal would bring these roads up to a PCI of from 90 to 100;thus,every road in the islands would
ultimately be at a PCI from 70 to 100.The County would perform the road improvements after'
annexation in coordination with the Town.
PAGE 3
MAYOR AND TOWN COUNCIL
SUBJECT:
(August 10,2005)
The letter from the County Executive did not address one issue of interest to the Town Council and
staff.This is the issue of the County's willingness to adopt development standards for
unincorporated islands that mirror Los Gatos'development standards.According to County staff,
this issue has been referred to a Board Study Session scheduled for August 31 st.This issue will be
one of a number of issues discussed at that session.Town staff has communicated to County staff
the importance ofthe County's commitment to this issue,as expressed by the Town Council at the
April 4th meeting.
Process Considerations
As noted above,the streamlined annexation process expires on January 1,2007.According to
LAFCO staff,any annexation undergoing the streamlined process needs to be completed by the
expiration date.To complete an annexation,LAFCO needs to record the annexation,which is then
filed with the State Board ofEqualization.The filing must be completed by early December in order
for the properties to get on the Town's tax roll for the following year.Thus,the paper work forthe
annexations need to be submitted to LAFCO by late November,2006.
County staff has stated that the County is committed to processing the annexations in a timely
manner;however,the volume and timing of annexation requests may impact the amount of time
needed for the process.Specifically,the County has asked that a minimum of30 days be allowed
for the surveyor's mapping and reports for the requested annexations.The County Assessor's
review will occur in parallel.
The other key step in the annexation process is outreach and communication to affected property
owners and residents.Depending on the level of outreach requested by the Town Council,several
months could be devoted to this activity.Given that the Town has 15 islands that could tentatively
go through the annexation process,a minimum of 10 months would be needed to complete the
process,although more time is desirable.
CONCLUSION:
Annexation of the County islands will provide a number of benefits to island residents and property
owners,the Town and the County,although some island residents have not been supportive of
annexations in the past.With the streamlined process and the County's commitment to facilitating
annexations as described above,the annexation process would be less time-inten~ive and less
expensive than in the past.If the Town undertakes the island annexation process,sufficient time
would still need to be devoted to outreach and communication with the affected residents and
property owners.
Staff is seeking Council direction regarding proceeding with the island annexations.Options for
consideration include:
PAGE 4
MAYOR AND TOWN COUNCIL
SUBJECT:
(August 10,2005)
1.Proceed with the annexation process for all eligible islands,including outreach and
communication to affected residents and property owners.
2.Wait for the County's affirmation of their willingness to adopt development standards for
unincorporated islands that mirror Los Gatos'development standards before proceeding.
3.Do not proceed with island annexations.
ENVIRONMENTAL ASSESSMENT:
Is not a project defined under CEQA,and no further action is required.
FISCAL IMPACT:
It is expected that one-time sources are available to cover the costs of public hearing notices and
outreach.
Attachments:
1.List and Map of County Islands within the Town·
Distribution:
Pete Kutras,County Executive,Santa Clara County,70 West Hedding Street,11 th Floor,
San Jose,CA 95110
Jane Decker,Deputy County Executive,70 West Hedding St.,East Wing,11 th Floor,San Jose,CA
95110-1770
Ann Ravel,County Counsel,Santa Clara County Counsel's Office,70 West Hedding Street,
East Wing,9th Floor,San Jose,CA 95110-1770
Ben Lopes,Fire Chief,Santa Clara County Fire Department,14700 Winchester Boulevard,
Los Gatos,CA 95030-95110
Carol Gruetzner,16192 Oleander Avene,Los Gatos,CA 95032
Larry Gerston,16191 Lilac Lane,Los Gatos,CA 95032
WoodyNedom,16280 Azalea Way,Los Gatos,CA 95032
Forrest Firth,15905 Orange Blossom,Los Gatos,CA 95032
Ken Waldvogel,Assistant Fire Chief,Santa Clara County Fire Department,14700 Winchester
Boulevard,Los Gatos,CA 95030
Dunia Noel and Neelima Palacherla -Local Agency Formation Commission,Santa Clara County
-11th Floor,East Wing,70 West Hedding Street,San Jose,CA 95110
L.F~
NO.SUB-AREA NAME SQFT ACRES NO.LOTS STREET MILES LOCATION
1.La Rinconada 1,811,184.75 41.58 68 5,615.04 1.06 Northwesterly,adjacent to country club
2.Blossom Hill Manor 7,593,969.63 174.33 623 28,887.48 5.47 Central,east of Los Gatos Blvd.
3.Winterbrook Rd 104,317.10 2.39 5 0.00 0.00 North·ofBlossom Hill Rd.
4.Linda Ave 40,570.17 0.93 2 0.00 0.00 North of Blossom Hill Rd.
5.Camino del Cerro #1 127,601.57 2.93 4 0.00 0.00 Blossom Hill Rd.&Camino del Cerro
(south).These four small areas could be
6.Camino del Cerro #2 134,161.62 3.08 3 0.00 0.00 considered one annexation.Need LAFCO
approval for this.
7.Camino del Cerro #3 44,760.11 1.03 2 0.00 0.00
8.Camino del Cerro #4 94,646.42 2.17 4 0.00 0.00
9.Robie Ln 331,340.00 7.61 17 603.89 0.11
10.Englewood Ave 20,369.26 0.47 1 0.00 0.00
11.Loma St.#1 5,150.60 0.12 1 0.00 0.00
12.Loma St.#2 13,319.37 0.31 3 0.00 0.00
13.Eastside 3,280,158.85 75.30 229 10,686.33 2.02 Between Shannon &Kennedy Rds &
mostly east of Englewood Ave
14.Peacock Ln.199,175.88 4.57 11 812.75 0.15
15.Eugenia Way 635,325.88 14.59 10 0.00 0.00 Note:Streets are private.
16.Twelve Oaks Rd.1,198,876.00 27.52 5 0.00 0.00
TOTALS 16,149,931.60 370.75 1,003 47,707.92 9.04
ISLAND ANNEXATION DATA
C:\Documents and Setlings\pjacobs\Local Settings\TEMP\lsland Data.xls Printed:8/10/2005 9:50 AM
TOWN OF LOS GATOS
A~EXATION ISLANDS
I -