PRE -ANNEXATION AGREEMENT BY AND BETWEEN
COUNTY OF ORANGE AND CITY OF PLACENTIA
The County of Orange, hereinafter referred to as "COUNTY", and the City of Placentia, hereinafter referred to as "CITY", with both parties collectively referred to hereinafter as "parties", enter into this pre -annexation agreement ("Agreement"), with reference to the annexation of a certain unincorporated island that falls within CITY'S sphere of influence;
WHEREAS, an unincorporated area of the COUNTY, known as the "Hamer Island," is located entirely within the CITY's geographic boundaries and sphere of influence, is comprised of approximately 76 acres of inhabited property depicted in Exhibit 1 hereto, and the COUNTY is proposing the annexation of "Hamer Island" into the CITY; and
WHEREAS, Revenue and Taxation Code section 99 provides that prior to the effective date of any jurisdictional change, the affected agencies of such change shall negotiate the amount of property tax revenues to be changed; and WHEREAS, the CITY and COUNTY have met and negotiated both a property tax exchange and other consideration, all of which is conditional upon the annexation of the Hamer Island becoming final and effective; and
WHEREAS, upon recordation of the approved annexation and assumption of services by the CITY, the CITY shall receive a one-time compensation of $1,500,000 to be used for public improvements and maintenance projects; and NOW, THEREFORE, based on the foregoing recitals which are hereby incorporated into this agreement, and in consideration of the parties' mutual agreements ]
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and promises hereinafter set forth, the sufficiency of which is hereby acknowledged, the parties agree as follows:
1. Purpose.
The parties have determined that annexation of Hamer Island would benefit both the COUNTY and CITY. Policies of the Orange County Local Agency Formation Commission ("LAFCO") favor the annexation of unincorporated areas so as to encourage the orderly and efficient provision of municipal services. The CITY has the capacity and authority to provide all required municipal services to Hamer Island, including but not limited to fire and safety services and reviews; waste and recycling services; land use reviews; acceptance of applications and processing, review, approval, conditional approval, modification, amendment and/or disapproval of any and all land use entitlements, building and grading permits and development approvals; inspection of any construction work and improvement as normally conducted by a city to determine compliance with any development approval, and issuance of final clearances or certificates of occupancy. The CITY shall assume and provide all such municipal services upon the effective date of annexation, unless otherwise provided herein.
2. CITY'S Application.
Within 90 days of the execution of this Agreement, the CITY will file an application for and diligently pursue annexation of the Hamer Island with LAFCO. The parties assert Hamer Island qualifies for the streamlined change of organization provisions of California Government Code Section 56375.3(a), LAFCO cannot deny a proper application for annexation submitted by the CITY, and protest proceedings would 2 ATTACHMENT 1
be waived.
3. Property Tax Exchange.
Upon recordation of LAFCO's resolution approving the annexation of the Hamer Island and the assumption of services by the CITY, the COUNTY and CITY agree to exchange of property taxes generated within Hamer Island as follows:
(a) The COUNTY shall receive 47.3376 percent and the CITY shall receive
52.6624 percent of the COUNTY's share of the 1 percent basic levy of property tax from the annexations, with the re -allocation taking effect after LAFCO approval of the annexation. These proportional shares shall remain as the allocation of tax revenues between the CITY and the COUNTY for the annexations for all future years unless the CITY and COUNTY agree by written resolution to adjust the allocation proportions. (b) The CITY shall receive a one-time compensation of $1,500,000 to be used for public improvements and maintenance projects.
(c) As the CITY provides its own fire protection services and does not contract with the Orange County Fire Authority, the CITY shall receive one hundred percent (100%) of the Structural Fire Fund generated from the annexed area and facilities for all future years.
4. Open Code Enforcement Cases.
The COUNTY commits to making its best effort to close out open code enforcement and building safety/planning cases prior to the date of annexation, with the understanding that CITY agrees that COUNTY shall be entitled to charge, receive and retain all code enforcement fine amounts, which shall be the 3 ATTACHMENT 1
COUNTY's sole consideration for all services performed in closing such open cases. For code enforcement cases that still remain open on the date of annexation, the COUNTY shall administer the cases to completion, using COUNTY ordinances and code enforcement procedures. Otherwise, the CITY assumes these responsibilities upon the effective date of annexation.
5. Permits and Plan Check Issues.
CITY agrees that COUNTY shall be entitled to charge, receive and retain all customary fees for open cases that continue past the date of annexation, including planning application, building permit fees, grading fees, and inspection fees. The fees shall be the COUNTY's sole consideration for all services performed in closing such open cases. Otherwise, the City assumes these responsibilities upon the effective date of annexation.
6. Fees.
CITY will request that LAFCO allow this annexation to be processed under the former "small island annexation program" so that LAFCO fees and map and legal fees are waived for the CITY.
7. Right, Title, Other Responsibilities and Deeds.
COUNTY and CITY agree to execute, in recordable form, such documents as may be required to effectuate the annexation. All right, title and interest of the COUNTY, including but not limited to underlying fee title where owned by the COUNTY in any public places, infrastructure, roads, streets, bridges, storm drains, utilities, sidewalks, trails, bikeways, landscaped areas, street lights, traffic signals, signs, open space and parks shall vest in the CITY and the CITY shall assume all 4 ATTACHMENT 1
ownership and maintenance responsibilities thereto upon the effective date of annexation. If any transfer of ownership of real property that would not automatically result from the annexation is necessary to carry out the objectives of this agreement, the COUNTY will execute, in recordable form, such deeds or other documents as may be required to accomplish those objectives.
8. Remedies.
In the event of a breach of this Agreement, the non-breaching party shall have the right to pursue against the breaching party, any and all remedies that are available at law or in equity for breach of a contractual agreement.
9. Organization.
The various headings and numbers herein, the grouping of provisions of this Agreement into separate clauses and paragraphs, and the organization thereof, are for the purpose of convenience only and shall not be considered otherwise.
10. Amendments.
Any changes to this Agreement shall be in writing and shall be properly executed by both parties.
11. Partial Invalidity.
If any term, covenant, condition, or provision of this Agreement is held by a court of competent jurisdiction to be invalid, void, or unenforceable, the reminder of the provisions hereof shall remain in full force and effect and shall in no way be affected, impaired, or invalidated thereby.
12. Governing Law and Venue.
This Agreement has been negotiated and executed in the County of Orange, State ATTACHMENT 1
5 of California and shall be governed by and construed under the laws of the State of California. In the event of any legal action to enforce or interpret this agreement, the sole and exclusive venue shall be a court of competent jurisdiction located in Orange County, California, and the parties hereto agree to and do hereby submit to the jurisdiction of such court, notwithstanding Code of Civil Procedure section 394.
13. Termination.
This Agreement may terminate upon the failure of either party to fail to fulfill its obligations under Sections 1 through 4 as provided herein.
14. No Third-Party Beneficiaries.
The parties expressly acknowledge and agree that they do not intend, by their execution of this Agreement, to benefit any person or entities not signatory to this Agreement. No person or entity not a signatory to this Agreement will have any rights or causes of action against the CITY or COUNTY, or any combination thereof, arising out of or due to CITY'S or COUNTY'S entry into this Agreement.
15. Notices.
All notices or other communications required hereunder shall be in writing and shall be personally delivered (including by means of professional messenger service), or sent by registered or certified mail, postage prepaid, return receipt required, or by electronic facsimile transmission followed by delivery of a "hard" copy, and shall be deemed received on the date of receipt thereof. Unless otherwise indicated in writing, such notice shall be sent addressed as follows:
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6 To CITY:
City of Placentia
401 E. Chapman
Avenue Placentia,
CA 92870 Attn:
City Administrator
Telephone: (714) 993-8118
Facsimile: (714) 961-0283
To COUNTY:
County Executive Officer
Attn. Frank Kim
333 W. Santa Ana Blvd.
Santa Ana, CA 92701
16. Counterparts.
This Agreement may be executed in two (2) or more counterparts, each of which shall constitute an original.
17. Entire Agreement.
This Agreement contains the entire agreement of the parties with respect to the subject matter hereof, and supersedes all prior negotiations, understandings or agreements, either written or oral, express or implied.
18. Further Acts.
The parties agree to execute such additional documents and to take such further actions as are reasonably necessary to accomplish the objectives and intent of this Agreement.
19. Indemnification.
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Each party agrees to indemnify, defend with counsel approved in writing by the other party, and hold the other party, and their officials, officers, employees and agents free and harmless from any claim, loss, damage, or injury to property or persons, including wrongful death, in any manner arising out of or incident to any negligent act, omission or willful misconduct of the agreeing party, their respective officers, employees or agents, arising out of or in connection with the execution or performance of this Agreement, including without limitation the payment of attorney fees.
20. Waiver.
The failure of any party to insist upon strict compliance with any provision of this Agreement or to exercise any right or privilege provided herein, or any party's waiver of any breach hereunder, whether unless in writing, shall not relieve any other party of any obligations hereunder, whether of the same or similar type. The foregoing shall be true whether the waiving party's actions are intentional or unintentional.
21. Authorization to Execute.
The signatories to this Agreement warrant that they have been lawfully authorized by their respective parties to execute this Agreement on their behalf.
22. Recordation.
The CITY shall cause this Agreement to be recorded with the Orange County Recorder's Office within 60 days of the last signature required on this Agreement, or upon receipt of LAFCO's resolution approving this annexation, whichever occurs last.
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23. Severability.
If any provision or clause of this Agreement or any application of it to any person, firm, organization, partnership or corporation is held invalid, such invalidity shall not affect other provisions of this Agreement which can be given effect without the invalid provision or application. To this end, the provisions of this Agreement are declared to be severable.
24. Prohibition Against Assignment.
Neither CITY nor COUNTY may assign this Agreement or any interest in it without the prior written consent of the other.
25. Exhibit.
This Agreement incorporates by this reference, the following Exhibit, which is attached hereto:
Exhibit 1 — Hamer Island Description/Depiction
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IN WITNESS WHEREOF, the Parties hereto have executed this Agreement on the dates set forth below:
CITY OF PLACENTIA
By
Damien R. Arrula
City Administrator, City of Placentia
Date
COUNTY OF ORANGE, a political
subdivision of the State of California
By
Chairman, Board of Supervisors
Date
APPROVED AS TO FORM
OFFICE OF COUNTY COUNSEL
By
Date:
Deputy
EXHIBIT 1
Hamer Island Description/Depiction
1 ;E COUNTY '
AFC()
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EXHIBIT A
Map
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Weibel
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City of Placentia
Hamer Island
Legend
amer Island
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