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10 Staff Report - Arnerich Road No 2N~ MEETING DATE: 05/04/09 ITEM NO. Uilw, COUNCIL AGENDA REPORT toy ~ ~~os DATE: April 30, 2009 TO: MAYOR AND TOWN COUNCIL FROM: GREG LARSON, TOWN MANAGER SUBJECT: ARNERICH ROAD NO.2 (APNS: 537-11-009,537-11-030,537-17-015,537- 07-018, 537-17-020, 537-17-021, 537-17-024, 537-17-027, 537-17-032); FILE #AN08-003. ADOPT RESOLUTION RESCINDING RESOLUTION NO. 2009-034, TERMINATING ANNEXATION PROCEEDINGS, AND DIRECTING STAFF TO INITIATE NEW PROCEEDINGS. RECOMMENDATION: The Santa Clara County Local Agency Formation Commission (LAFCO) has determined that three properties to the east of the subj ect application must be included as part of the proposed annexation. Given that the previous notification for the April b, 2009 and May 4, 2009 hearings did not include the additional property information, staff recommends the Council adopt a resolution rescinding the previously adopted Resolution 2009-034. BACKGROUND: On April 6, 2009, the Town Council adopted a resolution initiating the annexation for Arnerich No. 2. At the same hearing, the Town Council, after receiving public comment, requested clarification regarding the term `island', the LAFCO requirements for islands versus peninsulas and for a map of the existing jurisdiction. In the follow-up conversations with LAFCO staff, it was detennined that the subject annexation would create two separate islands, which is contrary to what Town staff was told before the annexation was initiated and is inconsistent with LAFCO policies. (continued on page 2) afil-I PREPARED BY: Wendie R. Rooney, Director of Community Development Reviewed by: ~Assistant Town Manager t ulvl own Attorney Clerk Finance Corrununity Development Revised: 4130109 9-41 AM Reforinatted: 5/30/02 N;IDCVICNCLRPTS120091ArnericliNo.2.Protest lennination.doc PAGE 2 MAYOR AND TOWN COUNCIL SUBJECT: ARNERICH ROAD NO. 2; FILE #AN08-003. April 30, 2009 nrCrr TRRM . A. County Islands There is no definition of the term "island" in the Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000 (CKH), which governs the annexation process. However, the term "island," which is commonly used and understood in the context of an annexation, is any unincorporated land within a city's Urban Service Area (USA). The existing unincorporated area of land of which the subject annexation is a part could be described as a peninsula to illustrate the manner in which it relates to Town jurisdiction. However, there is no definition of the term "peninsula" in the CKH and LAFCO does not distinguish an unincorporated area described as a peninsula from a county island. The existing unincorporated area is within the Town's USA and, therefore, an island for the purposes of annexation. B. Location and Pro ertA vicinity map is included as Attachment 2 and shows the proposed annexation as well as the existing county island in which it is located. Although the proposed annexation reduces the total area of the county island, as currently proposed, it divides the existing single county island into two islands. This prevents the decision body from making the required finding in Section 56757(c)(4) of the CKH "that the proposal does not create islands or areas in which it would be difficult to provide municipal services." A site map is included as Attachment 3 and illustrates the division of the existing island the annexation would create. The site map also provides zoning designations. C. Annexation Termination The determination by LAFCO that the additional properties must be included requires the proposed annexation map be redrawn and the process to commence from the beginning. Therefore, staff is recommending that the subject application be tenninated and that the original resolution initiating the annexation be rescinded. D. Forthcoming Annexation Staff expects the annexation to continue with the required changes. The area contains less than 12 registered voters (Attachment 4) and staff expects the Town will receive written protests, Consequently, the forthcoming annexation would be an uninhabited non-100% consent annexation as was the annexation before the additional territory requirement. The process will be the same and a public hearing will be required to conduct protest proceedings. After the conclusion of the protest proceedings, but no later than 30 days after the protest proceedings, PAGE 3 MAYOR AND TOWN COUNCIL SUBJECT: ARNERICH ROAD NO. 2; FILE #AN08-003. April 30, 2009 the Council shall determine the value of written protests filed and not withdrawn. Based on the determination of the value of written protests, the Council shall take one of the following actions: 1. If the value of land within the affected territory owned by those protesting the annexation is less than 50% of the value of the entire territory to be annexed, the Council shall order the annexation without election. 2. If the value of land within the affected territory owned by those protesting the annexation is 50% or more of the value of the entire territory proposed to be annexed, the Council shall abandon the annexation. E. Value In expectation of the annexation progressing forward, a table of current value is provided in Attachment 5. Staff anticipates Mr. & Ms. Kokinos, property owners of APNs 537-17-024 and 537-17-032, and Jonathan Frankle and Lorraine Hirsch, property owners ofAPN 537-17-005), will protest the annexation. Midpeninsula Regional Open Space District owns the two other properties required by LAFCO to be included in the subject application. At the April 6, 2009 Council hearing, Mr. Kokinos was unable to conclude his presentation and introduce the fact that incorrect values were enrolled for his property by the County Assessor. The attached table of current values (Attachment 5) reflects the updated tax assessor records for the 2008-2009 tax roll and the additional territory to become a part of the subject annexation. In summary, the value of the entire area to be annexed is $13,905,389.00 (2008-09 tax roll). The value of the property owned by Kokinos and Frankle/Hirsch is $4,298,478.00, or 30.9% of the entire area. ENVIRONMENTAL ASSESSMENTS: Annexation of the subject property is exempt for the California Environmental Quality Act guidelines, pursuant to Section 15061(b)(2). Section 15319 (Annexation of Existing Facilities and Lots for Exempt Facilities) exempts annexations to a city of private structures developed to a density allowed by current or prezoning. Attachments: 1. Resolution rescinding Resolution 2009-034, with Exhibits A & B 2. Vicinity Map 3. Site Map 4. List of Registered Voters 5. Updated Table of Total Assessed Value PAGE 4 MAYOR AND TOWN COUNCIL SUBJECT: ARIVERICH ROAD NO. 2; FILE #AN08-003. April 30, 2009 Distribution: Velimir Sulic, 2021 The Alameda, Suite 195, San Jose, CA 95126 Jeffery Kaplan, 14100 Arnerich Road, Los Gatos, CA 95032 Robert L. Puette, P.O. Box 1750, Hollister, CA 95024 J.P. Puette, P.O. Box 1750, Hollister, CA 95024 Faramarz Sepahmansour, 14090 Shannon Road, Los Gatos, CA 95032 Karen Sepahmansour, 14090 Shannon Road, Los Gatos, CA 95032 Carrie Perzow, 14050 Shannon Road, Los Gatos, CA 95032 Von Leirer, 14050 Shannon Road, Los Gatos, CA 95032 John Weidert, 14065 Arnerich Road, Los Gatos, CA 95030 Margaret Weidert, 14065 Arnerich Road, Los Gatos, CA 95030 Michael Kokinos, 14075 Arnerich Road, Los Gatos, CA 95032 Ployzene Kokinos, 14075 Arnerich Road, Los Gatos, CA 95032 Jonathan A. Frankle, 17491 Hicks Road, Los Gatos, CA 95032 Lorraine S. Hirsch, 17491 Hicks Road, Los Gatos, CA 95032 Midpeninsula Regional Open Space District Attn: Mike Williams, 330 Distel Circle, Los Altos, CA 94022-1404 Michael Lopez, Planning Manager; Environmental Resources Agency, 7th Flr; County Government Center, East Wing; 70 W. Hedding St, San Jose, CA 95110 Gay Strand, Administrative Services Manager III, County Library Service Area, 14600 Winchester Boulevard, Los Gatos, CA 95032 WRR:JS:mdc RESOLUTION RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF LOS GATOS RESCINDING RESOLUTION 2009-034 WHEREAS, a petition for the annexation of certain territory to the Town of Los Gatos and detachment of said territory from Santa Clara County Library Service Area, consisting of 61.10 acres located along Arnerich, Hicks, and Wagner Roads (APNs: 537-11-009, 537-11-030, 537-17-015, 537-07-018, 537-17-020, 537-17-021, 537-17-024, 537-17-027, 537-17-032) has been filed by Robert L. Puette; and WHEREAS, on April 6, 2009, the Town Council adopted Resolution 2009-034 initiating proceedings for annexation of the area designated as "Arnerich Road No. 2"; and WHEREAS, said territory is uninhabited and all on the owners of land included in the proposal have not consented to this annexation; and WHEREAS, Section 56757 of the California Government Code states that the Local Agency Formation Commission shall not review an annexation proposal to any city in Santa Clara County of unincorporated territory which in within the urban service area of the city if initiated by resolution of the legislative body and therefore the Town Council of the Town of Los Gatos is now the conducting authority for said annexation; WHEREAS, Local Agency Formation Commission ("LAFCO") determined the proposed annexation must include additional properties to those shown on the Exhibits contained in Resolution 2009-034; and WHEREAS, the annexation proceedings initiated with the adoption of Resolution 2009-034 must be terminated and new proceedings initiated to ensure that all affected property owners are fully noticed regarding the proposed annexation. NOW, THEREFORE, BE IT RESOLVED by the Town Council of the Town of Los Gatos as follows: 1. That it is the conducting authority pursuant to Section 56757 of the Government Code for the annexation of property designated "Arnerich Road No. 2" more particularly described in Exhibit "A" and "B"; 2. That Resolution 2009-034 is rescinded thus terminating the proceedings for the annexation of property designated "Arnerich Road No. 2" more particularly described in Exhibit "A" and "B"; 3. That the Town shall take necessary steps to initiate new proceedings consistent with the annexation application referred to here in above and with the new boundaries determined by the LAFCO; 4. That this termination does not prohibit a successive application from being reviewed by the Town Council pursuant California Government Code Section 56757. PASSED AND ADOPTED at a regular meeting of the Town Council held on the 4" of May 2009, by the following vote: COUNCIL MEMBERS: AYES: NAYS: ABSENT: ABSTAIN: SIGNED : /s/ Mike Wasserman MAYOR OF THE TOWN OF LOS GATOS LOS GATOS, CALIFORNIA ATTEST: /s/ Jackie Rose CLERK ADMINISTRATOR OF THE TOWN OF LOS GATOS LOS GATOS, CALIFORNIA EXHIBIT "A" ARNERICH ROAD ANNEXATION NO. 2 ANNEXATON TO THE TOWN OF LOS GATOS GEOGRAPHIC DESCRIPTION OF "AREA A" (NORTH OF ARNERICH ROAD) All that certain real property situate in a portion of Sections 24 and 25, Township 8 South, Range 1 West, Mount Diablo Base and Meridian, in the County of Santa Clara, State of California, described as follows: BEGINNING at the most Northeasterly Corner of Arnerich Road Annexation No. I to the Town of Los Gatos; , Thence, (1) South 81 ° 1500" East 264.93 feet; Thence, (2) South 821 00'00" East 897.00 feet; Thence, (3) North 48° 45'00" East 78.33 feet; Thence, (4) North 001 30'00" West 164.62 feet; Thence, (5) North 77° 53'56' East 50.08 feet to a point on the southerly boundary line of Hicks Road Annexation No. 4 to the Town of Los Gatos, also being the southerly right-of-way line of Shannon Road; Thence, (6) South 44° 09'30" East 87.74 feet along said southerly boundary line of Hicks Road Annexation No. 4; Thence, (7) South 72° 56' 16" East 259.42 feet; Thence, (8) North 84° 03'22" East 205.63 feet; Thence, (9) North 751 32'45" East 145.38 feet; Thence, (10) South 45° 55' 21 " East 320.99 feet; Thence, (11) South 00° 33'24" West 166.18 feet to a point on the westerly boundary line of Guadalupe No. 21 Annexation to the City of San Jose, also being the westerly boundary line of the lands described in that certain Grant Deed from James Rolph III and June Irene Rolph, his wife, to Guadalupe Rubbish Disposal Cm, Inc., a California Corporation, recorded August 16, 1973 in Book 0520 of Official Records at Pages 295-300, Santa Clara County Records; Thence, leaving said southerly boundary line of Hicks Road Annexation No. 4, (12) South 41 ° 00' 00" West 185.56 feet along said westerly boundary line of Guadalupe No. 21 Annexation; Thence, (13) South 08" 30'09' West 264.00 feet; Thence, (14) South 14° 30'00" East 104.05 feet to a point, said point being (15) North 14° 30'00" West 225.95 feet distant from the Section Corner common to Sections 19 and 30, Township 8 South, Range 1 East, and Sections 24 and 25, Township 8 South, Range 1 West, Mount Diablo Base and Meridian; Thence, leaving said westerly boundary line of Guadalupe No. 21 Annexation (16) North 43° 54'00" West 55.42 feet; Thence, (17) North 89" 52'06" West 74.83 feet; Thence, (18) South 00" 34' 00" East 8.20 feet; Thence, (19) along a curve to the left having a radius of 30.33 feet through a central angle of 690 40'20" an arc distance of 36.88 feet; Thence, (20) South 19° 45'40" West 40.00 feet; Thence, (21) North 701 14'20" West 16.45 feet; Thence, (22) along a curve to the left having a radius of 20.00 feet through a central angle of 85° 29'00" an arc distance of 29.64 feet to a point on the boundary line said Arnerich Road Annexation No. 1; Thence, (23) North 31 ° 35'04" West 60.41 feet along said Arnerich Road Annexation No. 1 boundary fine; Thence, (24) South 24° 16'40" West 116.05 feet; Thence, (25) along a curve to the right having a radius of 100.00 feet through a central angle of 47° 00'20" an arc distance of 82.04 feet; Thence, (26) South 71 ° 17'00" West 138.50 feet; Thence, (27) South 00° 30'00" East 10.56 feet; Thence, (28) North 31" 33'55" West 3.34 feet; Thence, (29) South 77° 17'30" West 288.77 feet; Thence, (30) North 00" 00' 00" East 37.14 feet; Thence, (31) South 89° 30'00" West 187.08 feet; Thence, (32) North 00° 00' 00" East 74.00 feet; Thence, (33) South 89° 30'00" West 100.00 feet; Thence, .(34) South 44° 26'49' West 42.39 feet; Thence, (35) South 89" 30'00" West 239.38 foot; Thence, (36) South 00" 00'00" West 44.00 foot; Thence, (37) South 89° 45' 16" West 826.70 feet; Thence, (38) North 00° 33'26" West 1,151.50 feet to the POINT OF BEGINNING and containing 47.91 acres of land, more or less. For assessment purposes only. This description of land is not a legal properly description as defined in the Subdivision Map Act and may not be used as the basis for an offer for sale of the land described. May 26, 2008 Masan-Sulic, Inc. Revised August 19, 2008 Job No. 07434 Arnerich Road No. 2 Page 1 o12 Annexation to The Town of Los Gatos GEOGRAPHIC DESCRIPTION OF "AREA B" (SOUTH OF ARNERICH ROAD) All that certain real property situate in a portion of Sections 24 and 25, Township 8 South, Range 1 West, and in a portion of Section 30, Township 8 South, Range 1 East, Mount Diablo Base and Meridian, in the County of Santa Clara, State of California, described as follows: BEGINNING at the most Easterly Corner of Arnerich Road Annexation No. 1 to the Town of Los Gatos; Thence, (1) North 53° 30'00" West 44.28 feet along the boundary line of said Arnerich Road Annexation No. 1; Thence, (2) South 59° 48'35" West 303.01 feet Thence, (3) South 17° 44' 00" West 151.10 feet; Thence, (4) North 69° 55' 24" West 144.85 feet; Thence, (5) South 71 ° 25' 00" West 92.64 feet; Thence, (6) South 49° 46'00" West 145.00 feet; Thence, (7) North 10° 14'00" West 289.90 feet; Thence, (8) North 36° 55'00" West 173.30 feet; Thence, (9) North 68° 07'20" West 136.30 feet; Thence, (10) South 76° 38'00" West 383.47 feet; Thence, (11) North 00° 00'00" West 254.19 feet to a point on the southerly right-of-way line of Arnerich Road; Thence, (12) North 80° 29' 30" l=ast 160.35 feet continuing along Arnerich Road Annexation No. 1 boundary line; Thence, (13) South 88" 29' 00" East 166.08 feet; Thence, (14) North 77° 17' 30" East 441.68 feet; Thence, (15) North 711 17' 00" East 121.49 feet; Thence, (16) North 89° 30'00" East 31.99 feet; Thence, (17) North 71 ° 17'00" East 57.22 feet; Thence, (18) along a tangent curve to the left having a radius of 160.00 feet through a central angle of 39° 15'40" and arc distance of 109.64 feet; Thence, leaving said Arnerich Road Annexation No. 1 boundary line, (19) South 08° 32' 00" West 84.90 feet; Thence, (20) North 89" 30'00" East 220.07 feet; Thence, (21) South 09° 43'30" East 158.98 feet; Thence, (22) South 23° 06'30" East 243.64 feet; Thence, (23) South 36° 30'00" West 94.31 feet to the POINT OF BEGINNING and containing 13.19 acres of land, more or less. "Area A" North of Arnerich Road containing 47.91 acres, "Area B" South of Arnerich Road containing 13.19 acres: Total computed acreage containing 61.10 acres, more or less. For assessment purposes only. This description of land is not a legal property description as defined in the Subdivision Map Act and may not be used as the basis for an offer for sale of the land described. May 26, 2008 Mason-Sulic, Inc. 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Arnerich Road No. 2 N Legend Property Required by LAFCO Proposed Annexation Urban Service Area Boundary 0 Town Jurisdiction ATTACHMENT 2 1 / ~i-7 Tl" ,y I HR-5 Prezone Al ~HR-OP6 HRAO HR-5 -t y HR-5 HR Pre one ~1 1 HR40 Prezon ff - HR- 0 / ! Site Map Legend Arnerich Road No. 2 Property Required by LAFCO ® Proposed Annexation Zoning Boundaries Parcels Town Jurisdiction ATTACHMENT 3 ARNERICH ROAD NO. 2 LIST OF REGISTERED VOTERS NUMBER OF SITE ADDRESS APN REGISTERED VOTER REGISTERED VOTERS 1. 14100 Arnerich Rd 537-11-009 Jeff Kaplan 1 2. 17505 Hicks Rd 537-11-030 0 0 Jonathan A. Frankle 3. 17491 Hicks Rd 537-17-005 Lorraine S. Hirsch 2 4. Arnerich Rd 537-17-015 0 0 5. 14090 Arnerich Rd 537-17-018 0 0 John C. Weidert Margaret 2 6. 14065 Arnerich Rd 537-17-020 Mary Weidert 7. Arnerich Rd 537-17-021 0 0 Michael Anthony Kokinos 2 8. 14075 Arnerich Rd 537-17-024 Polyxene Gazetas Kokinos Von Otto Leirer Carrie Joy 9. 14050 Shannon Road 537-17-027 Perzow 2 Michael Anthony Kokinos (included with APN 537- 10. Arnerich Rd 537-17-032 Polyxene Gazetas Kokinos 17-024) 11. Hicks Rd 575-04-011 0 0 12. Pheasant Rd 575-05-002 0 0 TOTAL: 9 NADEVWENNIFER S%nnexationlArnerichNo.211_ist of Registered VotersAs ATTACHMENT 4 ARNERICH ROAD NO. 2 TOTAL ASSESSED VALUE 2008 - 2009 TAX ROLL N SITE ADDRESS APN TOTAL. VALUE 1. 14100 Arnerich Rd 537-11-009 $ 965,059.00 2. 17505 Hicks Rd 537-11-030 $ 1,311,877.00 3. 17491 Hicks Rd 537-17-005 $ 857,024.00 4. Arnerich Rd 537-17-015 $ 138.00 5. 14090 Arnerich Rd 537-17-018 $ 1,775,733.00 6. 14065 Arnerich Rd 537-17-020 $ 1,360,128.00 7. Arnerich Rd 537-17-021 $ 46,116.00 8. 14075 Arnerich Rd 537-17-024 $ 12,961.00 9. 14050 5hannon Road 537-17-027 $ 4,134,899.00 10. Arnerich Rd 537-17-032 $ 3,441,454.00 11. Hicks Rd 575-04-011 $ - 12. Pheasant Rd 575-05-002 $ - TOTAL: $ 13,905,389.00 WDEWENNIFER 51AnnexationlAmerich%.2\Total Assessed Value.xls ATTACEMENT 5