Agenda Item: 10
CITY OF SANTA CLARITA
AGENDA REPORT
CONSENT CALENDAR
CITY MANAGER APPROVAL:
DATE: August 23, 2022
SUBJECT: PROPOSED TESORO DEL VALLE ANNEXATION -
SUPPLEMENTAL JOINT RESOLUTION AND ASSOCIATED
TRANSFER AGREEMENTS BETWEEN THE CITY OF SANTA
CLARITA AND THE COUNTY OF LOS ANGELES
DEPARTMENT: Community Development
PRESENTER: Patrick Leclair
RECOMMENDED ACTION
City Council:
1. Adopt the attached Supplemental Joint Resolution which shall:
a. Transfer jurisdiction of Landscaping and Lighting Act (LLA) District No. 4, Zone 76 (Zone) from the County of Los Angeles to the City of Santa Clarita and approve and accept the negotiated exchange of benefit assessment revenues for the Zone; b. Withdraw the territory proposed for annexation from County Lighting Maintenance District 1687 (CLMD 1687);
c. Exclude the territory proposed for annexation from County Lighting District LLA-1, Unincorporated Zone; and
d. Clarify the City of Santa Clarita's responsibilities regarding Drainage Benefit Assessment Area No. 35.
2. Authorize the City Manager or designee to take all actions to effectuate the Joint Resolution and Supplemental Joint Resolution.
3. Find the proposed transfer of Tesoro Adobe Historic Park is categorically exempt from the California Environmental Quality Act for the reasons stated herein and the reasons reflected in the record of the project.
4. Find that pursuant to Government Code section 25550.5, Tesoro Adobe Historic Park is local in character and approve the transfer of Tesoro Adobe Historic Park to the City of Santa Clarita.
5. Approve a Park Transfer Agreement between the County of Los Angeles and the City of Santa Clarita.
6. Execute the quitclaim deed consistent with Transfer Agreement and applicable conditions.
7. Execute a transfer agreement with the County of Los Angeles for the purpose of transferring the County's grant responsibilities to the City of Santa Clarita.
8. Execute an amended Reciprocal Easement and Joint Use Agreement with Montalvo Properties, LLC, Tesoro del Valle Master Homeowners Association, and the City of Santa Clarita, for the purpose of replacing the County of Los Angeles with the City of Santa Clarita.
9. Authorize the City Manager or designee to execute all agreements and associated documents, subject to City Attorney approval.
BACKGROUND
On November 12, 2019, the City Council adopted Resolution No. 19-57 to initiate annexation proceedings for the Tesoro del Valle Annexation Area with the Local Agency Formation Commission (LAFCO). The proposed annexation boundary includes approximately 1,786 acres of the Tesoro del Valle community, which includes the Tesoro Historic Park (Park Property).
The application was submitted to LAFCO on January 28, 2020.
On July 12, 2022, the City Council approved a revised Joint Property Tax Transfer Resolution (TTR) between the City of Santa Clarita (City), Los Angeles County (County), Greater Los Angeles County Vector Control District, Santa Clarita Valley Water District, Antelope Valley Resource Conservation District, and Los Angeles County Sanitation District. The County Board of Supervisors approved the TTR at their August 9, 2022, meeting.
Supplemental Joint Resolution
In addition to adopting the TTR at their August 9, 2022 meeting, the County Board of Supervisors (BOS) approved a Supplemental Joint Resolution (Resolution) to:
• Transfer Landscaping and Lighting Act (LLA) District No. 4, Zone 76 from the County to the City;
• Withdraw the territory proposed for annexation from the County Lighting and Maintenance District 1678 (CLMD 1687);
• Exclude the territory proposed for annexation from County Lighting District LLA-1, Unincorporated Zone; and
• Transfer Drainage Benefit Assessment Area (DBAA) No. 35 to the City.
To facilitate the annexation, the County has adopted the Resolution with the understanding that the City Council will consider the Resolution at the August 23, 2022, City Council meeting.
Approval by both governing bodies is necessary in order to complete the annexation in November 2022.
DBAA No. 35
The annexation territory includes a proposed assessment area known as Drainage Benefit Assessment Area (DBAA) No. 35 and proposed drainage improvements associated with the proposed assessment area. The City Council’s approval of the Supplemental Joint Resolution will transfer responsibility for DBAA No. 35 and the associated improvements to the City from and after the effective date of the annexation and upon completion of the improvements.
Additional Annexation Details
Tesoro Historic Adobe Park
The County is requesting the City Council adopt a Park Transfer Agreement that would establish the terms for the transfer of the Park Property to the City through a Quitclaim Deed. If approved at the August 23, 2022, City Council meeting, the County will present the Park Transfer Agreement for consideration by the BOS at their September 6, 2022, meeting. Upon the final LAFCO approval in November 2022 and acceptance of the Quitclaim Deed, the City will become responsible for the maintenance and operation of Tesoro Adobe Historic Park.
The County acquired the Park Property in 2005 from Montalvo Properties, LLC. The Park Property is approximately 2.26 acres and located at 29350 Avenida Rancho Tesoro, Valencia, California, 91354, and consists of historical structures and a wood frame barn. The Park Property is subject to a Reciprocal Easement and Joint Use Agreement with Montalvo Properties, LLC., and Tesoro del Valle Master Homeowners Association (Tesoro Master Association). Since the Park Property is located within the proposed annexation territory, the City Council’s approval of the transfer of title and interest to the City is required so the City becomes responsible for the operation and maintenance of the park’s facilities.
The Transfer Agreement provides that the Quitclaim Deed conveying the Park Property to the City will contain the following restrictions: 1) the Park Property is to be used for open space, public recreation, and park purposes only; 2) the Park Property shall be equally open and available to residents of incorporated and unincorporated territory, and there shall be no discrimination against or preference, gratuity, bonus, or other benefits given to residents of an incorporated area not equally accorded residents of unincorporated territory.
As part of this action, the City also acknowledges that it is acquiring property that may be within, or is located within, the vicinity of a historical and archeological resource and agrees to accept any obligations associated therewith. Further, the City shall assume all claims, liabilities, obligations, and duties under the provisions of the Proposition A Grant Agreement for Project P-29-16-2596.
Solid Waste
Pursuant to California Public Resources Code Section 49520, Burrtec has a right to continue providing residential service to the Tesoro del Valle community for the term of their Exclusive Residential Franchise Agreement with Los Angeles County (County) or five years from the annexation date, whichever is less. Burrtec has indicated that they intend to assert their continuation rights and service the Tesoro del Valle community under the terms of their current agreement with the County. To formalize this arrangement, staff intends to bring a Continuation
Rights Agreement to the Council for their consideration at a future Council meeting that would transfer Burrtec’s current Amended Agreement with the County to the City of Santa Clarita.
Trails
The County and City have discussed the transfer of the trails within the annexation area to the City. After multiple discussions, the County is unwilling to transfer the trails to the City. Upon annexation, the County will continue to own and maintain the trails within the annexation area.
Regional Housing Needs Assessment (RHNA)
Upon annexation, the City would be responsible for the RHNA obligation for the 820 units approved by the County in the Tesoro Highlands project area. The 820 units would be transferred to the City in the Above Moderate Income category.
Next Steps
Subsequent steps for the Tesoro del Valle Annexation call for up to two LAFCO hearings prior to completion of this annexation. The first is a general public hearing anticipated for September 2022, followed by a “protest hearing” in November 2022 should it be necessary. This annexation is anticipated to be complete by the end of November 2022.
ALTERNATIVE ACTION
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
Supplemental Joint Resolution
Park Transfer Agreement
Park Transfer Agreement Exhibits (available in the City Clerk's Reading File)