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CITY COUNCIL AGENDA REPORT
City of Anaheim
DEPARTMENT OF PUBLIC WORKS
DATE: SEPTEMBER 27, 2022
FROM: DEPARTMENT OF PUBLIC WORKS
SUBJECT: RESOLUTION TO APPROVE A PROPERTY TAX
EXCHANGE AGREEMENT WITH THE CITY OF ORANGE
FOR THE SANTA ANA RIVER REORGANIZATION (AREAS
1, 1A, 2, 3, AND REMAINING AREAS) NO. RO 21-06 AND
DETERMINE SAID ACTIONS ARE EXEMPT FROM THE
CALIFORNIA ENVIRONMENTAL QUALITY ACT
PURSUANT TO SECTION 15301 (CLASS 1, EXISTING
FACILITIES)
ATTACHMENT (Y/N): YES ITEM # 19
RECOMMENDATION:
That the City Council, by Resolution, approve a Property Tax Exchange Agreement between the City of Anaheim and the City of Orange for the annexation of an approximate 9.2-acre area depicted as the Santa Ana River Reorganization (Areas 1, 1A, 2, 3, and Remaining Areas) No. RO 21-06, pursuant to the Cortese-Knox- Hertzberg Local Government Reorganization Act of 2000 and Sections 99 and
99.01 of the California Revenue and Taxation Code.
DISCUSSION:
On November 24, 2020, the Anaheim City Council approved Resolution No. 2020- 137 requesting the Orange County Local Agency Formation Commission (OCLAFCO) to take proceedings pursuant to the Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000 for the City of Anaheim to annex approximately 9.8 acres of property and rescinded Resolution No. 2020-118 (“Original Request”); and, determined that these actions were exempt from further environmental review under Section 15319 of the California Environmental Quality Act (CEQA) Guidelines (Class 19, Annexations of Existing Facilities and Lots for Exempt Facilities). The Original Request proposed to realign a portion of the city boundary between the City of Anaheim and the City of Orange along the Santa Ana River between approximately 1,000 feet south of Orangewood Avenue and approximately 750 south of Katella Avenue.
Tax Exchange Analysis:
Sections 99 and 99.01 of the California Revenue and Taxation Code requires jurisdictions involved in such a jurisdictional change to adopt resolutions agreeing to a property tax redistribution prior to their Local Agency Formation Commission’s approval of the Reorganization pursuant to Section 56658 of the California Government Code.
Resolution to approve a Property Tax Exchange Agreement with the City of Orange for the Santa Ana River Reorganization (Areas 1, 1A,2, 3, and remaining areas) No. RO 21-06 and determine said actions are exempt from the California Environmental Quality Act pursuant to Section 15301 (Class 1 – Existing Facilities) September 27, 2022
The City of Orange and the City of Anaheim agree that the Santa Ana River Reorganization would be more efficiently served by the City of Anaheim and that it is appropriate to distribute one hundred percent (100%) of the City of Orange’s share of the one percent basic levy of property tax generated within the Santa Ana River Reorganization to the City of Anaheim upon the effective date of the Reorganization.
As such, an agreement via resolution (Attachment 1) with the City of Orange and the City of Anaheim has been reached, subject to approval of their respective governing bodies, regarding exchange of property tax as a result of the proposed Reorganization, whereby, upon the effective date of the Reorganization, the City of Anaheim shall receive 100% of the City of Orange’s share of the 1% basic levy of property tax generated within the Santa Ana River Reorganization. Upon completion of the annexation, the City will take over responsibility for providing city services to the property, and will also assume ownership of, and responsibility for all right-of-way and public facilities adjacent to the property that are currently owned by the City of Orange.
The City of Orange is expected to take action and approve a similar resolution on October 11, 2022. Similarly, the County of Orange is required to adopt a resolution on behalf of the Municipal Water District of Orange County prior to consideration of the Reorganization by OCLAFCO. The County of Orange is expected to take board action before the end of the year. OCLAFCO will then schedule its hearing once all the certified copies of these resolutions have been approved.
Environmental Impact Analysis:
Staff recommends the City Council find that the effects of the proposed property tax exchange agreement of the Santa Ana River Reorganization to the City of Anaheim is Categorically Exempt from the requirements to prepare additional environmental documentation per CEQA Guidelines, Section 15301, Class 1 (Existing Facilities). The Class 1 exemption consists of the repair, maintenance, and/or minor alteration of existing public or private structures or facilities, involving negligible or no expansion of the use beyond that existing at the time of this determination, and would not cause a significant effect on the environment. The Santa Ana River Reorganization is primarily open space and the proposed annexation application would not change the existing use of the subject property; therefore, the proposed project meets the criteria for a Class 1 Exemption. Any future use of this property beyond the existing land use is currently speculative and would be subject to future environmental review under CEQA. Pursuant to Section 15300.2 (c) and 15301 of Title 14 of the California Code of Regulations, there are no unusual circumstances in respect to the proposed application for which staff would anticipate a significant effect on the environment and, therefore, the proposed application for annexation is categorically exempt from the provisions of CEQA.
IMPACT ON BUDGET:
Resolution to approve a Property Tax Exchange Agreement with the City of Orange for the Santa Ana River Reorganization (Areas 1, 1A,2, 3, and remaining areas) No. RO 21-06 and determine said actions are exempt from the California Environmental Quality Act pursuant to Section 15301 (Class 1 – Existing Facilities) September 27, 2022
The budgetary impact to the general fund is minimal.
According to the Revenue Impact Analysis (Attachment 2) from the County of Orange Auditor Controller, the amount of property tax that is subject to negotiation between the City of Anaheim and the City of Orange is $63.48.
Respectfully submitted,
Rudy Emami
Director of Public Works
Attachments:
1. Resolution and Exhibit
2. Revenue Impact Analysis