TOWN OF LOS ALTOS HILLS StaffReport to the City Council

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1 AGENDA ITEM #5.B TOWN OF LOS ALTOS HILLS StaffReport to the City Council July 31, 2012 SUBJECT: APPROVAL OF A RESOLUTION TO ANNEX THE UNINCORPORATED LA LOMA AREA, CONSISTING OF ONE (1) PARCEL (8.10 ACRES) OF RESIDENTIALLY DEVELOPED LAND IN UNINCORPORATED SANTA CLARA COUNTY. #42-12-MISC. FROM: Debbie Pedro,Planning Directof})f APPROVED: Carl Cahill, City Manager C. C. RECOMMENDATION: That the City Council: Approve the attached resolution ordering the annexation of the territory known as "La Loma No.3". BACKGROUND On June 21, 2012, the City Council unanimously voted to approve a resolution initiating the annexation of one unincorporated parcel in the La Loma area and set a date ofjuly 31, 2012 for final consideration. The subject area is an unincorporated "island" consisting of one parcel on 8.10 acres within the Town's Urban Service Area (USA). DISCUSSION The annexation area consists of one property on acres of land developed with a single-family home and accessory structures. The annexation does not include any specific development projects, zoning change, or grant of land use entitlements. No physical changes are proposed as part ofthis annexation application. The approval of the resolution is the last step in the annexation process. An approval packet will be sent to LAFCO for their final recordation ofthe certificate of completion. CEQA STATUS The proposed annexation Negative Declaration was approved by the City Council on June 21,2012. ATTACHMENTS 1. Draft Resolution 2. Map ofproject Area 3. City Council StaffRepOli dated June 21,2012 RepOli prepared by: Cynthia Richardson, Planning Consultant

2 Attachment 1 DRAFT RESOLUTION No. RESOLUTION OF THE CITY COUNCIL OF THE TOWN OF LOS ALTOS HILLS MAKING DETERMINATIONS AND APPROVING THE ANNEXATION OF TERRITORY DESIGNATED "LA LOMA NO.3" CONSISTING OF ONE PARCEL OF 8.10 ACRES (25355 LA LOMA DRIVE) LOCATED ON THE SOUTHERN BOUNDARY OF LOS ALTOS IDLLS WHEREAS, on June 21,2012, the City Council adopted Resolution No initiating proceedings for mmexation ofthe area designated as "LaLornaNo.3"; and WHEREAS, California Government Code Section provides for an expedited process for cities to initiate changes of organization or reorganization for pockets of unincorporated territory within specified time frames that meet specified criteria; and WHEREAS, the State legislature has adopted the objective for LAFCO's to promote orderly boundaries and the efficient delivery ofservices; and WHEREAS, the Town of Los Altos Hills has conducted a public hearing on the reorganization in accordance with Section ofthe California Government Code; and WHEREAS, in accordance with Government Code Section 56153, and Section 56157, the City Clerk of the Town of Los Altos Hills has provided mailed notice of the hearing on the annexation. NOW, THEREFORE, BE IT RESOLVED, as follows: A. The following fmdings are made by the City Council ofthe Town of Los Altos Hills: 1.1 The territory does not exceed 150 acres in area, and is substantially surrounded by the Town oflos Altos Hills and is located within the urban service ofthe Town; 1.2 The territory is not a gated community, is fully developed with single family homes with provided services and is receiving benefits from the Town oflos Altos Hills; 1.3 That the territory is not considered prime agricultural land; 1.4 That the proposal does not create islands or areas in which it would be difficult to provide municipal services. 1.5 That the proposal is consistent with the adopted general plan ofthe city.

3 1.6 That the territory is contiguous to existing city limits. 1.7 That the city has complied with all conditions imposed by the LAFCO for inclusion ofthe territory in the urban service area ofthe city. B. That the City Council of the Town of Los Altos Hills hereby approves the annexation of the territory designated as "La Loma No.3" into the Town of Los Altos Hills and that upon completion of the annexation proceedings the area will be taxed on the regular county assessment roll. PASSED AND ADOPTED at a regular meeting ofthe City Council of the Town of Los Altos Hills on this day of 2012, by the following vote: AYES: NAYS: ABSTAIN: ABSENT: By: Rich Larsen, Mayor _ ATTEST: City Clerk 2

4 Attachment 2 (:) o -::t II ~~ Qj ~ Cf)

5 Attachment 3 TOWN OF LOS ALTOS HILLS StaffReport to the City Council June 21, 2012 SUBJECT: CONSIDERATION OF RESOLUTION INITIATING -ANNEXATION PROCEEDINGS FOR THE UNINCORPORATED LA LOMA AREA, CONSISTING OF ONE (1) PARCEL (8.10 ACRES) OF RESIDENTIALLY DEVELOPED LAND IN UNINCORPORATED SANTA CLARA COUNTY. #42 12-MISC. FROM: Debbie Pedro, Planning Director APPROVED: Carl Cahill, City Manager RECOMMENDATION: That the City Council: 1. Approve the Initial Study and the Negative Declaration (Attachment #1); AND 2. Adopt a resolution, (Attachment #2) initiating annexation proceedings for the La Lorna Area and set a date for a second public hearing no sooner than July 26,2012. BACKGROUND On September 22, 2011, the Council set a plan for annexing the remaining pocket areas as follows: 1) La Lorna and Olive Tree Hill, 2) Ravensburry, 3) Moody Road, 4) San Antonio Hills. This plan will be implemented over the next 4 to 5 years. On April 19, 2012, the City Council adopted an Ordinance to pre-zoning the La Lorna Area to the Town's R-A (Residential Agricultural) zone district. Prezoning must occur prior to any annexation. The single parcel is developed with a single-family residence and accessory structures with access to La Lorna Drive, a private road. The La Lorna Area is located within the Towli's Urban Service Area (USA). ANNEXATION PROCESS Per Government Code Section , "island" annexations that meet certain criteria may be approved without protest hearings or elections. These criteria are: 1) The island is 150 acres or less in size and is surrounded or substantially surrounded by the annexing city. 2) The island is not a gated community where services are provided by a Community Services District. 3) The island is substantially developed or developing based on the availability of public utility services.

6 StaffRepOlt to the City Council La Loma Annexation June 21,2012 Page 2 of6 4) The island is not considered prime agricultural land 5) The island is receiving benefits from the annexing city or will receive benefits from the annexing city after annexation. 6) The island was not created after January 1,2000. The La Lorna "island", meets all of these criteria as it is only 8.10 acres in size, is substantially surrounded by the Town of Los Altos Hills, is not gated, is completely developed, is not prime agricultural land, and is currently receiving benefits from the Town. Therefore, the proposed annexation qualifies for the streamlined process outlined under Government Code Section Under the streamlined annexation process, two public hearings are required before the City Council; the first to adopt a resolution to initiate the annexation and set a date for the second public hearing, and the second to adopt the resolution to approve the annexation. DISCUSSION Statistical Summary Number of Parcels Total Land Area Average Lot Size Dwelling Units Population Total Street Length (Public) Total Street Length (private) Total Assessed Valuation *Census 2010 (based on average household size) acres 8.10 acres * ofeet 210 feet $5,255,513 Land Use and Planning Analysis The annexation ofthe La Lorna Area will transfer land use regulatory authority "from Santa Clara County to the Town of Los Altos Hills. The annexation area consists of one (l) parcel on acres of land developed with a singlefamily home and accessory structures. The annexation does not include any specific development projects, zoning change, or grant of land use entitlements. No physical changes are proposed as pmi ofthis annexation application. Zoning Standard Land Use Minimum Lot Size Min. Front Yard Setback Min. Side Yard Setback HS Santa Clara Coun ) Single-Family Residential 1 Acre 30' 30' Single-Family Residential 1 Acre 40' 30'

7 StaffRepOlt to the City Council La Loma Annexation June 21, 2012 Page 3 of6 Min. Rear Yard Setback 30' 30' Maximum Height 35' 27' Second Dwelling Units Max. size 800 sq. ft. Max. size 1,000 sq. ft. Structures built legally' accordmg to County standards that do not conform to Town standards would be recognized as "legal non-conforming" and allowed to continue as they cunently exist. Redevelopment of legal non-conforming structures or additions to them would be required to comply with Section ofthe Los Altos Hills Municipal Code. According to the County records there are minor outstanding building permits on this property. The County will continue processing all inspections and final the permits. The County has added a note into their database to cease accepting major applications for building permits two months prior to LAFCO recording the final annexation. We expect the final approval by LAFCO to be around the middle ofaugust. Public Services and Facilities Community Development The addition of one (1) property will result in a slight increase in workload for planning, engineering, and building depmiment staff, as additional staff time will be needed to provide general customer service for the new residents. However, this administration cost would be offset by additional propel1y tax revenues. The service cost for processing planning and building pennits will be recovered through application fees and deposits. Police Services Law enforcement and public safety services are provided to Town residents under contract with the Santa Clara County Sheriffs Department. The Sheriff reports that there will be no increase in cost associated with the mmexation of one parcel (Attachment #3). The Sheriffs Department repolis that there are no current problems within this neighborhood. Fire Protection Fire protection, suppression, and safety services are provided by the Santa Clara County Fire Department, which will continue to be the agency responsible for fire protection services to properties in the La Loma Drive Area. The Fire Department has reviewed the annexation proposal and states that the roads are adequate (Attachment # 4). Schools The project area is currently being served by the Los Altos Elementary School and Mountain View-Los Altos Unified High School Districts. Annexation to the Town does not affect school district boundaries. Water Supply The project area will continue to receive water from the Purissima Hills Water District. will be no change to the water supply. There

8 StaffRepOlt to the City Council La Loma Annexation June 21,2012 Page 4 of6 Solid Waste Collection and Street Sweeping Solid waste collection in Los Altos Hills is provided under an agreement with Greenwaste Recovery, Inc. The agreement covers garbage collection and pickup of recyclable materials and yard waste. Sanitary Sewer In January 2007, the Town of Los Altos Hills and the City of Los Altos entered into an agreement for the transportation, treatment, and disposal of sewage. The agreement allows a total flow of million gallons per day (MGD) from the Town into the sanitary sewer system owned by the City oflos Altos. There is adequate sewer capacity to serve the property in the La Lorna Island. Ifthe property owners wish to connect to the sewer system they will have to pay the required one-time sewer connection fee, construction permit fee, sewer reimbursement fee (ifapplicable), and an annual sewer assessment fee (currently $733 per year). Streets La Lorna Drive is a private road at the location of the project site. It is the Town policy (Attachment # 5) that if a private road is to be taken over by the Town then the road must be brought up to Town standards prior to making it a public road. No road improvements are proposed by the resident. Pathways, Recreational Facilities, and Open Space The annexation will have negligible impacts on the recreation facilities and programs in Los Altos Hills. It is not anticipated that the addition of one developed propeliy would significantly increase demand on overall service levels for recreational needs. There are no existing parks or other recreation areas within the project area. Pathways and Open Space Easement requirements will be evaluated at the time of any future site development applications after the annexation is complete. Taxes and Fees Once the Board of Equalization assigns the Tax Rate Area, fmal tax changes can be determined. It is anticipated that the increase in taxes to the new resident will be minimal.. Taxing Agency Los Altos Hills Existing Taxes/Assessments/Fees 1. Santa Clara County-base tax No change. 2. Santa Clara County-library No change 3. Los Altos School District No change 4. Santa Clara Valley Water District~flood control No change 5. Santa Clara Valley Water District-creek protection No change 6. Mosquito Abatement #2 No change 7. Vector Control No Change 8. North County Library Authority No Change

9 StaffRepOlt to the City Council La Lorna Annexation June 21,2012 Page 5 of6 9. Purissima Hills Water District No Change New Taxes/AssessmentslFees 10. Town oflos Altos Hills-sewer ifconnected $ EI Camino Hospital District $Varies 12. SCVWD - Zone W-1 Bond $Varies The total net value of assessed parcel is $5,255,513 (includes land and improvements). This assessed value will result in additional tax revenue to the Town of approximately $3,112 for the tax year. The final numbers will be calculated by the Board of Equalization and the County Finance Agency when the final annexation is recorded by LAFCO. ABl17 (TEA FUNDING) AND ANNEXATIONS On February 28, 2006, the Santa Clara County Board of Supervisors passed two measures in support oftax Equity Allocation (TEA) which involves the return ofannual property tax revenue from the County to the Town. The TEA accounts for a significant additional propelty tax revenue per year for the Town. The Board of Supervisors' support on TEA was clearly predicated on the Town's continuous commitment to pursue annexation of unincorporated lands in the County within the Town's Sphere ofinfluence.. CEQASTATUS An Initial Study and Negative Declaration have been prepared for the proposed annexation area. FISCAL IMPACT The additional costs of serving the one propelty may be offset by the additional propelty tax revenue. NEIGHBORHOOD COMMENTS Since the last hearing we have received one neighbor letter from Richard and Linda Aurelio (25320 La Loma Drive)(Attachment #6). They object to the annexation ifthe road is not going to be brought up to town standards and then maintained by the Town. Our Public Works Director has indicated that the roads will not be accepted to the Town for public road purposes or for maintenance purposes based on the Town's policy. ATTACHMENTS 1. Initial Study and Negative Declaration 2. Draft Resolution 3. Sheriffs memo dated June 11, Fire Department memo dated June 6, 2012

10 StaffRepOlt to the City Council La Loma Annexation June 21, 2012 Page 6 of6 5. Town Road Policy 6. Neighbor comment letter 7. Ordinance No. 536 amending the Zoning Map 8. March 14,2012 City Council staffreport (Prezoning) 9. LAFCO report dated November 1, Town Annexation Policy 11. Map ofannexation area Rep0l1 prepared by: Cynthia Richardson, Planning Consultant

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