DATE: June 20, 2023
TO: Honorable Mayor and City Council
FROM: Jason Kruckeberg, Assistant City Manager/Development Services Director Lisa Flores, Deputy Director of Development Services
SUBJECT: RESOLUTION NO. 7509 REQUESTING THE TERMINATION OF
PROCEEDINGS RELATED TO LOCAL AGENCY FORMATION
COMISSION (“LAFCO”) REORGANIZATION CASE NO. 2023-02 TO THE CITY OF MONROVIA FOR THE PROPERTY ADDRESSED AS 923 S.
10TH AVENUE
CEQA: Not a Project
Recommendation: Take No Action
SUMMARY
The City has received an application from the Local Agency Formation Commission (“LAFCO”) to initiate proceedings for the re-organization of a piece of property currently in the City of Arcadia. The request to LAFCO was generated by the property owner of 923 S. 10
th Avenue and it seeks to “de-annex” this single residential property from Arcadia into the City of Monrovia for future development considerations. LAFCO’s process allows the City of Arcadia a period of time within which the City may adopt and file with LAFCO, a resolution requesting termination of proceedings, the effect of which would be that LAFCO would not move forward considering the proposal.
Resolution No. 7509 has been prepared for City Council consideration, if the City Council wishes to terminate proceedings on this item to meet LAFCO timelines . However, i t is recommended that the City Council take no action on this matter and allow the applicant to pursue this action with LAFCO.
BACKGROUND
The Local Agency Formation Commission ( “LAFCO”) for Los Angeles County is an independent public agency with countywide jurisdiction over the boundaries of cities and certain special districts. LAFCO's jurisdiction involves proposed boundary changes to local government boundaries involving the formation, dissolution, and expansion of cities and special districts. LAFCO is governed by State Law, the Cortese- Knox-Hertzberg Local Government Reorganization Act of 2000 ("Act"). The Act tasks LAFCO with Resolution No. 7509 - LAFCO
June 20, 2023
discouraging urban sprawl, encouraging orderly and efficient provision of services, and preserving open space and prime agricultural lands.
The City of Arcadia has not completed an annexation or boundary reorganization for decades and has not been proactive in pursuing annexations in general. This is true of surrounding cities as well. Regardless, public agencies typically generate any annexation requests and usually there is a compelling reason for the jurisdiction to be seeking a change. A request for annexation by private entities is extremely rare, especially when dealing with very small pieces of land.
On May 15, 2023, the City received a notice from LAFCO that the property owner of 923 S. 10
th Avenue has requested to de- annex their property from the City of Arcadia to the City of Monrovia (refer to Attachment No. 2). There are many steps to the reorganization process and it can take over one year to complete. The following is a very simplified summary of the process:
1. Pursuant to Government Code Section 56751, the City of Arcadia has until July 12, 2023, to file a resolution to terminate proceedings. If the City chooses to do this, the application will not be acted upon. This statement reflects where the City is now in this process.
2. If proceedings are not terminated, then the County CEO Office/Board of Supervisors will prepare a tax transfer resolution.
3. Once distributed, the tax transfer resolution must be presented to the Arcadia City Council. The City Council can either deny or approve the request for the re- organization.
4. Other impacted taxing agencies, including the City of Monrovia, must also approve or deny the resolution.
5. The City of Monrovia must prepare CEQA documentation and determine zoning information before LAFCO can deem the application complete.
6. A negotiated tax agreement and an approved map with a geographic description must be approved by the LA County Board of Supervisors.
7. If approved by all affected entities, the request must be heard by LAFCO , who is the final decision maker.
DISCUSSION
The Arcadia address in question is 923 S. 10
th Avenue (Assessor Parcel Number 5780-
019-011). The lot is approximately 20,000 square feet in size and runs along the boundaries of the Cities of Arcadia and Monrovia. The property owner also owns two parcels to the north in the City of Monrovia. Functionally, the three parcels are developed currently as a single development. See the map below to view the project site.
Resolution No. 7509 - LAFCO
June 20, 2023
As can be seen on the map, a property line bisects an existing building and development potential is limited with municipal boundaries on either side of the property. The current zoning for the Arcadia parcel is R-1 (Single Family) and it is RM4000 in Monrovia (Multi- Family) with a Land Use designation of Medium Density Residential, which allows for a maximum density of 17. 4 d welling units per acre. Currently, t he Arcadia parcel is developed with two units in place. Additionally, the property backs up to the L.A. County Flood Control Channel to the west. The property owner is seeking to move the Arcadia parcel into Monrovia to allow the entire property to be under one jurisdiction and one zoning designation, helping facilitate redevelopment of the property as multiple residential units, which is the development pattern to the north of these subject parcels.
Currently, the land in question is assessed at $63,469 , which would generate approximately $61 in property tax revenue to the City of Arcadia per year.
Resolution No. 7509 - LAFCO
June 20, 2023
Generally, cities are opposed to reorganizations that are simply driven by private development goals. It is not typically in a city’s interest to cede property to another jurisdiction given property tax value to the city, impacts to the School District and other taxing entities, and the precedent that a private reorganization may set for other properties that may be split by jurisdictional boundaries. Additionally , the reorganization process is complicated and involves many different entities who need to modify processes, maps, documents, and tax amounts based on this request. Normally, this process is reserved for major property modifications and significant portions of land.
That being said, the only question in front of the City at this time is whether or not the City should submit a resolution to terminate these proceedings. In the initial analysis of the filing, there does not appear to be a significant reason to do so. The property cannot be developed in a coherent manner in either Arcadia or Monrovia as it sits currently. The proposal, while requiring a great deal of work for such a small change, would allow the property owner to pursue a development that appears better suited to the area than the current situation. Additionally, the City has had preliminary discussions with both Monrovia staff and representatives of the Arcadia Unified School District. To date, there is no significant opposition to the request and proceeding to the next step in the process.
If, a fter review and taking any public testimony, the City Council wishes to issue a resolution to LAFCO to terminate proceedings, the City Council may simply adopt the attached Resolution No. 7509. However, it is recommended that the City Council take no action at this time. Taking no action would, in effect, allow the project to proceed to the next required steps. This recommendation is not binding, nor does it prevent the City of Arcadia from later objecting to the ultimate reorganization. Additionally, the C ity of Monrovia or relevant taxing agencies may also object to the process , or LAFCO may reject it. A t this time, there does not appear to be a pressing reason to terminate proceedings.
ENVIRONMENTAL ANALYSIS
The proposed action does not constitute a project under the California Environmental Quality Act (“CEQA”), as it can be seen with certainty that it will have no impact on the environment. Thus, this matter is exempt under CEQA.
FISCAL IMPACT
There will be a negative fiscal impact to the City as a result of de-annexing this parcel to the City of Monrovia. As noted above, the estimated assessed value of the property currently is $63,469. At current tax rates and collections distributed to the City of Arcadia, this equates to approximately $61 in tax revenue to the City annually. There may also be Resolution No. 7509 - LAFCO
June 20, 2023
lighting and landscaping district fees and other tax obligations attached to the property, which would be known should the project move forward to the taxing agreement phase.
Additional taxing entities related to the City of Arcadia will also have some fiscal impact if the parcel is removed from the City’s jurisdiction. A full analysis of the fiscal impact is not available at this time but will be provided when the proposal returns to the City as part of the review of the tax transfer resolution and later steps in the process. However, t he overall impact of this single residential parcel being removed from the City’s tax rolls is not viewed to be significant.
In terms of the rev iew process, the City has no established fee to process this type of application as it is so rare and would typically be initiated by the City. Therefore, to cover the City’s costs in processing this application, it is recommended that the applicant be required to make a deposit to the Planning Division to cover staff costs. An initial deposit of $5,000 is recommended and staff time would be billed to this amount. This is similar to other reimbursement agreements the City has created for planning, environme ntal, or legal work.
RECOMMENDATION
It is recommended that the City Council take no action on Resolution N o. 7509 at this time and authorize Staff to process any application submitted on this matter through a reimbursement agreement with the applicant.
Attachment No. 1: Resolution No. 7509
Attachment No. 2: LAFCO Application to Initiate Proceeding for Change of Organization/Reorganization (No. 2023-02)
Attachment No. 1
Resolution No. 7509
Attachment No. 2
LAFCO Application to Initiate Proceeding
for Change of Organization/Reorganization
(No. 2023-02)