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HomeMy WebLinkAbout2012-02-28 - AGENDA REPORTS - VISTA CYN PROP TAX EXCHANGE (2)Agenda Item: 10 CITY OF SANTA CLARITA AGENDA REPORT CONSENT CALENDAR City Manager Approval: Item to be presented by: Darren Herndndez DATE: February 28, 2012 SUBJECT: JOINT RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA CLARITA AND THE BOARD OF SUPERVISORS OF THE COUNTY OF LOS ANGELES APPROVING THE NEGOTIATED EXCHANGE OF PROPERTY TAX REVENUE RESULTING FROM THE PROPOSED VISTA CANYON/FAIR OAKS/JAKES WAY ANNEXATION DEPARTMENT: Administrative Services RECOMMENDED ACTION City Council: 1. Adopt a Joint Resolution of Negotiated Exchange of Property Tax Revenue for the proposed Vista Canyon/Fair Oaks/Jakes Way Annexation. 2. Authorize the City Manager or his designee to sign, subject to the approval of the City Attorney, a Park Property Transfer Agreement to accept the Fair Oaks Park into the City of Santa Clarita parks system upon completion of the annexation. BACKGROUND On May 10, 2011, the City Council adopted Resolution No. 11-11, initiating annexation proceedings for the Vista Canyon/Fair Oaks/Jakes Way Annexation area with the Local Agency Formation Commission (LAFCO). On July 28, 2011, the application was submitted to LAFCO. Upon approval by the City Council of the joint resolution, the Los Angeles County Board of Supervisors will schedule a hearing to consider the joint resolution. Subsequent final steps include up to two LAFCO hearings for the annexation. The first, a general public hearing anticipated for Spring 2012, followed by a "protest hearing," if necessary. This process will take several months to complete. The proposed joint resolution provides for a transfer of property tax revenue from the County to the City in the amount of $587,513, for the first fiscal year. For each fiscal year thereafter, the proposed joint resolution provides for the transfer of specified ratios of annual property tax increment attributable to each of the 62 respective Tax Rate Areas. Also included as part of the annexation process is the transfer of County park land in Fair Oaks Ranch to the City. The park area is 6.28 acres and, upon transfer to the City, will continue to provide recreational opportunities to area residents. A draft transfer document is attached. ALTERNATIVE ACTIONS The City Council may direct staff to terminate annexation proceedings or direct other actions as determined by the City Council. FISCAL IMPACT The service expenditures related to this annexation are offset by the revenue to be collected from within the annexation area. This annexation is fiscally neutral and will not have a negative impact on the City of Santa Clarita. ATTACHMENTS Joint Resolution Draft Fair Oaks Park Transfer Agreement Vista Canyon/Fair Oaks/Jakes Way Annexation Area Map —Z— JOINT RESOLUTION OF THE BOARD OF SUPERVISORS OF THE COUNTY OF LOS ANGELES AND THE CITY COUNCIL OF THE CITY OF SANTA CLARITA, APPROVING AND ACCEPTING THE NEGOTIATED EXCHANGE OF PROPERTY TAX REVENUE RESULTING FROM THE ANNEXATION OF TERRITORY KNOWN AS ANNEXATION 2011-20 (VISTA CANYON/JAKES WAY/FAIR OAKS RANCH/ SAND CANYON) TO THE CITY OF SANTA CLARITA, WITHDRAWAL FROM COUNTY LIGHTING MAINTENANCE DISTRICT 1687, EXCLUSION FROM COUNTY LIGHTING DISTRICT LLA -1, UNINCORPORATED ZONE, DETACHMENT FROM COUNTY ROAD DISTRICT NO. 5, AND WITHDRAWAL FROM THE COUNTY PUBLIC LIBRARY SYSTEM WHEREAS, the City of Santa Clarita initiated proceedings with the Local Agency Formation Commission for Los Angeles County (LAFCO) for the annexation of territory identified as Annexation 2011-20 to the City of Santa Clarita; and WHEREAS, pursuant to Section 99 of the California Revenue and Taxation Code, for specified jurisdictional changes, the governing bodies of affected agencies shall negotiate and determine the amount of property tax revenue to be exchanged between the affected agencies; and WHEREAS, the area proposed for annexation is identified as Annexation 2011-20 and consists of approximately 2,442 acres of unincorporated territory including the Vista Canyon project, Jakes Way, Fair Oaks Ranch, and Sand Canyon areas generally located south of State Route 14, west of Sand Canyon Road, and north of Placerita Canyon Road; and WHEREAS, the area is located within the boundaries of County Lighting Maintenance District 1687; and WHEREAS, the City of Santa Clarita hereby agrees to the withdrawal of the proposed annexation territory from County Lighting Maintenance District 1687 and annexation to Santa Clarita Streetlight Maintenance District No. 1; and WHEREAS, upon annexation of the proposed area to the City of Santa Clarita, the territory shall be withdrawn from County Lighting Maintenance District 1687 and annexed to Santa Clarita Streetlight Maintenance District No. 1; and WHEREAS, the annexation area is also located within County Lighting District LLA -1, Unincorporated Zone; and WHEREAS, pursuant to Section 22613 of the California Streets and Highways Code, whenever any territory of an assessment district is included within a city by annexation or incorporation, that territory is thereby excluded from the assessment district; and WHEREAS, upon annexation of the proposed area to the City of Santa Clarita, the territory will be automatically excluded from County Lighting District LLA -1, Unincorporated Zone; and HOA.862822.1 -- 3 City of Santa Clarita Annexation 2011-20 (Vista Canyon/Jakes Way/Fair Oaks Ranch/Sand Canyon) Page 2 of 5 WHEREAS, effective July 1, 2011, the City of Santa Clarita has withdrawn from the County Public Library system, and therefore, all unincorporated territory annexed to the City of Santa Clarita after that date will also be withdrawn from the County Public Library system. WHEREAS, the Board of Supervisors of the County of Los Angeles, as governing body of the County and the County of Los Angeles Road District No. 5, County Lighting Maintenance District 1687, County Lighting District LLA -1, Unincorporated Zone, and the County Public Library, and the City Council of the City of Santa Clarita, have determined the amount of property tax revenue to be exchanged between their respective agencies as a result of the annexation of the unincorporated territory identified as Annexation 2011-20, detachment from County Road District No. 5, withdrawal from County Lighting Maintenance District 1687, annexation to Santa Clarita Streetlight Maintenance District No. 1, exclusion from County Lighting District LLA -1, Unincorporated. Zone, and withdrawal from the County Public Library system, is as set forth below: NOW, THEREFORE, BE IT RESOLVED AS FOLLOWS: 1. The City of Santa Clarita agrees that it will bear the full responsibility for the street lighting and lighting maintenance services in the proposed annexation area upon the withdrawal of the annexation territory from County Lighting Maintenance District 1687 and exclusion of the territory from County Lighting District LLA -1, Unincorporated Zone. 2. The negotiated exchange of property tax revenue between the County of Los Angeles and the City of Santa Clarita, resulting from Annexation 2011-20 is approved and accepted. 3. For the fiscal year commencing in the year after the filing of the statement of boundary change for Annexation 2011-20 with the Board of Equalization pursuant to Government Code sections 54902 and 57204, and every fiscal year thereafter, property tax revenue received by County Road District No. 5, attributable to Annexation 2011-20, shall be transferred to the County of Los Angeles, and the County Road District No. 5 share in the annexation area shall be reduced to zero. 4. For the fiscal year commencing in the year after the filing of the statement of boundary change for Annexation 2011-20 with the Board of Equalization pursuant to Government Code sections 54902 and 57204, and every fiscal year thereafter, the tax -sharing ratio received by County Lighting Maintenance District 1687 attributable to Annexation 2011-20 in the annexation area shall be reduced to zero. 5. For the fiscal year commencing in the year after the filing of the statement of boundary change for Annexation 2011-20 with the Board of Equalization pursuant to Government Code sections 54902 and 57204, and every fiscal year thereafter, property tax revenue received by the County Public Library, attributable to Annexation 2011-20, shall be transferred to the City -Santa Clarita Library Fund, and the County Public Library's share in the annexation area shall be reduced to zero. 6. For the fiscal year commencing in the year after the filing of the statement of boundary change for Annexation 2011-20 with the Board of Equalization pursuant to Government Code sections 54902 and 57204, and every fiscal year thereafter, Five Hundred Eighty -Seven Thousand, Five Hundred and Thirteen Dollars ($587,513) in base property tax revenue shall be transferred from the County of Los Angeles to the City of Santa Clarita. HOA.862822.1 City of Santa Clarita Annexation 2011-20 (Vista Canyon/Jakes Way/Fair Oaks Ranch/Sand Canyon) Page 3 of 5 7. For the fiscal year commencing after the filing of the statement of boundary change for Annexation 2011-20 with the Board of Equalization pursuant to Government Code sections 54902 and 57204, and every fiscal year thereafter, the following ratios of annual property tax increment attributable to each respective Tax Rate Area in the Annexation 2011-20 territory shall be transferred from the County of Los Angeles to the City of Santa Clarita as shown below and the County's share shall be reduced accordingly: Tax Rate Area Annual Tax Increment Ratio Transfer to the City Tax Rate Area Annual Tax Increment Ratio Transfer to the Cit 01280 0.050335200 13744 0.044330970 01284 0.063592573 13745 0.044330970 01285 0.048252659 13746 0.044330970 01289 0.060960827 13835 0.044467360 02468 0.050335780 13912 0.041474730 02469 0.051694211 13963 0.041414866 02486 0.060484256 13964 0.044330970 02500 0.053296195 13965 0.044467360 05006 0.070263078 14069 0.044468801 05796 0.051180418 14176 0.070108976 05797 0.067687853 14269 0.070263077 06865 0.067425439 14277 0.044100625 09149 0.063592573 14409 0.044467361 09151 0.048252659 14410 0.044467361 09875 0.041543781 14411 0.055331458 09956 0.061717359 14412 0.044467361 10494 0.041810212 14642 0.055161743 10678 0.060960827 14643 0.055161743 11637 0.040544346 14644 0.044330970 11638 0.050450583 14645 0.070257838 11639 0.040544346 14650 0.044330970 11782 0.067687853 14669 0.044330970 12451 0.044467361 14718 0.044467360 12452 0.044467361 14719 0.041543780 12453 0.069232401 14792 0.070263077 12457 0.055161743 14954 0.063592573 13122 0.044100625 15040 0.044330970 13123 0.041130874 15041 0.044330970 13379 0.044468801 15070 0.044330970 13486 0.063592573 15071 0.044330970 13682 0.044330970 15092 0.070076156 HOA.862822.1 5- City of Santa Clarita Annexation 2011-20(Vista Canyon/Jakes Way/Fair Oaks Ranch/Sand Canyon) Page 4 of 5 PASSED, APPROVED AND ADOPTED this day of 20 by the following vote: AYES: ABSENT: NOES: ABSTAIN: Mayor City of Santa Clarita, California ATTEST: City Clerk City of Santa Clarita (Signed in Counterpart) HOA.862822.1 City of Santa Clarita Annexation 2011-20 (Vista Canyon/Jakes Way/Fair Oaks Ranch/Sand Canyon) Page 5 of 5 The foregoing resolution was on the day of , 20 adopted by the Board of Supervisors of the County of Los Angeles and ex officio the governing body of all other special assessment and taxing districts, agencies and authorities for which said Board so acts. APPROVED AS TO FORM: JOHN F. KRATTLI Acting County Counsel BY Deputy HOA.862822.1 SACHI A. HAMAI, Executive Officer Clerk of the Board of Supervisors of the County of Los Angeles am (Signed in Counterpart) Deputy SANTA CLARITA PARK PROPERTY TRANSFER AGREEMENT This Santa Clarita Park Property Transfer Agreement ("Agreement") is made and entered into this day of 2012, by and between the City of Santa Clarita, a municipal corporation ("City"), and the County of Los Angeles ("County") a body politic and corporate, pursuant to Government Code Section 25365, regarding the conveyance of real property. This Agreement is made with reference to the following facts: A. County is the owner of one individual park property as shown on the exhibit to the Quitclaim Deed, attached hereto and incorporated herein by this reference as Exhibit A, and depicted in Exhibit B, attached hereto and incorporated herein by this reference. The real property being conveyed shall be referred to collectively herein as the "Park Property." B. City agrees to accept the Park Property for the purpose of incorporating the Park Property into the City's park system. NOW, THEREFORE, in consideration of the promises, conditions, and mutual covenants set forth herein, the parties hereto do agree as follows: 1. Transfer of Park Propertv. County agrees to effectuate the transfer of the Park Property by executing the Quitclaim Deed 2. Use. The City agrees at its cost, to develop, operate and maintain the Park Property solely for public park and recreational purposes. 3. Consideration. Both City and County mutually agree that the consideration provided for the conveyance of the Park Property shall be the City's agreement to develop, operate, and maintain the Park Property for public park and recreational purposes for the benefit of the residents of incorporated and unincorporated Los Angeles County and the City. 4. Condition of Title to Park Propertv. Except as otherwise expressly provided in this Agreement, the City is acquiring the Park Property "AS IS" and "WITH ALL FAULTS" in its present state and conditions as of the Closing. Except for the express representations and warranties set forth herein, each party agrees that the other has not made, does not make and specifically negates and disclaims any representations or warranties of any kind or character whatsoever, whether express or implied, oral or written, past, present or future, of, as to, concerning or with respect to the property being conveyed by it hereunder (including, without limitation, any warranty of merchantability, habitability, or fitness for a particular purpose). HOA.819498.1 5. Warranties of County. County warrants that: A. County has no actual present knowledge of any pending litigation involving the Park Property. B. County has no actual present knowledge of any violation of, or notices concerning defects or noncompliance with, any applicable building code or other code, statute, regulation, ordinance, judicial order, or judicial holding pertaining to the Park Property. 6. Closing Date and Recordation. The closing date ("Closing") shall occur 45 days after the execution of the Agreement by the Board of Supervisors.. The parties agree that the County will arrange for recording of the documents necessary to complete the conveyance contemplated hereby. The City agrees to timely provide the County its certificate(s) or resolution(s) of acceptance, pursuant to Government Code Section 27281, prior to the recording of the documents in a form substantially similar to that shown in Exhibit C, attached hereto and incorporated herein by this reference. 7. Indemnification. The City waives any and all claims, and agrees to indemnify, defend, save, and hold harmless County and its Special Districts, elected and appointed officers, employees, and agents (collectively, "County Indemnified Parties"), from and against any and all liability, expense, (including without limitation defense costs and legal fees), and claims for damages of any nature whatsoever, related to site conditions of the Park Property that accrue, or incidents that occur,. after Closing. 7. Default Regarding Use of County Lobbyists. City and each County Lobbyist or County Lobbing firm, as defined in Los Angeles County Code Section 2.160.010, retained by City shall fully comply with the County Lobbyist Ordinance, Los Angeles County Code 2.160. Failure on the part of City or any County Lobbyist or County Lobbying firm retained by City to fully comply with the County Lobbyist Ordinance shall constitute a material breach of this Agreement upon which City may immediately terminate or suspend this Agreement. 8. Notices. Any written notices required by this Agreement shall be made by personal delivery, registered or certified mail, postage prepaid, to the address indicated below: City: Rick Gould Director of Parks, Recreation and Community Services City of Santa Clarita 23920 Valencia Boulevard, Suite 300 Santa Clarita, CA 91355 HOA.819498.1 County: Chief Executive Office Real Estate Division 222 South Hill Street, 3`d Floor Los Angeles, CA 90012 ATTENTION: Chris Montana with a copy to: Department of Parks and Recreation Attention: James Barber, Planning Division 510 South Vermont Avenue Los Angeles, CA 90020 9. Counterpart. This Agreement may be executed in multiple counterparts, each of which shall be deemed an original, but of which, together, shall constitute one and the same instrument. 10. Authorization, Approvals, Binding Nature. This Agreement has no force and effect and is not binding on the City until and unless it is authorized by the City Council, and the County until and unless authorized by the Board of Supervisors at a duly noticed public meeting. 11. Time is of the Essence. Time is of the essence for each and every term, condition, covenant, obligation and provision of this Agreement. 12. Severability. In the event any portion of this Agreement shall be declared by any court of competent jurisdiction to be invalid, illegal, or unenforceable, such portion shall be severed from the Agreement, and the remaining parts hereof shall remain in full force and effect as fully as though such invalid, illegal, or unenforceable portion had never been part of the Agreement, provided the remaining Agreement can be reasonably and equitably enforced. 13. Binding on Successors. Subject to the limitations set forth herein, the Agreement shall be binding upon and inure to the benefit of the successors and assigns of the respective parties hereto. .14. California Law. This Agreement shall be construed in accordance with the internal laws of the State of California. 15. Waivers. No waiver by either party of any provision hereof shall be deemed a waiver of any other provision hereof or of any subsequent breach by either party of the same or any other provision. 16. Captions. The captions and the section and subsection numbers appearing in this Agreement are inserted only as a matter of convenience and in no way define, limit, construe or describe the scope or intent of such sections of this Agreement nor in any way affect this Agreement. 17. No Presumption Regarding Drafter. The parties acknowledge and agree that the terms and provisions of this Agreement have been negotiated and HOA.819498.1 discussed between the parties and their attorneys, and this Agreement reflects their mutual agreement regarding the same. Because of the nature of such negotiations and discussions, it would be inappropriate to deem any party to be the drafter of this Agreement, and therefore, no presumption for or against validity or as to any interpretation hereof, based upon the identity of the drafter, shall be applicable in interpreting or enforcing this Agreement. 18. Assistance of Counsel. Each party hereto either had the assistance of counsel or had counsel available to it, in the negotiation for, and the execution of, this Agreement, and all related documents. 19. Required Actions of the Parties. County and City agree to execute all such instruments and documents, and to take all action as may be required, in order to consummate the transfer of Park Propertycontemplated herein. 20. Survival of Covenants. The covenants, agreements, representations and warranties made herein are intended to survive the consummation of the transfer of the Park Property and recordation of the Quitclaim Deed. 21. Interpretation. Unless the context of this Agreement clearly requires otherwise: (i) the plural and singular numbers shall be deemed to include the other; (ii) the masculine, feminine and neuter genders shall be deemed to include the others; (iii) "or" is not exclusive; and (iv) "includes" and "including" are not limiting. 22. Final Agreement. This Agreement and the exhibits attached hereto, contains the entire agreement of the parties with respect to the transaction contemplated hereby and supersedes any prior agreement, oral or written, between City and County, about the subject matter hereof. No contemporaneous or subsequent agreement, amendment, representation or promise made by either party hereto, or by or to any employee, officer, agent, or representative of either party, shall be of any effect unless it is in writing and executed by the parties hereto. (SIGNATURE PAGE FOLLOWS) HOA.819498.1 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed and attested by their duly authorized officials, as of the day and year first above written. ATTEST: SACHI A. HAMAI Executive Officer, Clerk of The Board of Supervisors 0 Deputy Approved as to form: JOHN F. KRATTLI ACTING COUNTY COUNSEL Byron Shibata Deputy County Counsel HOA.819498.1 CITY OF SANTA CLARITA A municipal corporation F,13 Ken Pulskamp City Manager COUNTY OF LOS ANGELES Chairman, Board of Supervisors EXHIBIT A QUITCLAIM DEED- COUNTY TO CITY OF SANTA CLARITA HOA.819498.1