Brendan Vieg, Principal Planner ( ;

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* CITy,HICO City Council Agenda Report Meeting Date: July 5, 2017 TO: City Council FROM: Brendan Vieg, Principal Planner (879-6806; brendan.vieg@chicoca.gov) RE Esplanade Annexation District No. 29 (ANX 17-01) REPORT IN BRIEF Council is being asked to initiate proceedings to annex a roughly 70 acre area just north of the present City Limits along the east side of the Esplanade. The area is, and has been for many years, within the City's Sphere of Influence, and is designated by the General Plan for commercial development. The proposed annexation would include the future site of a local auto dealership, Courtesy Motors, as recently approved by the Butte County Board of Supervisors. The proposed annexation area is depicted on Attachment A. In addition to the auto center site, the annexation would include various commercial properties on Three Sevens Court and Sunset Hills Golf Course. Successful annexation of the area proposed is critical. The prospective relocation of a significant tax-generating use such as the subject auto dealership to a County location would hamper the City's fiscal recovery and would substantially interfere with its ability to provide fundamental services. This is especially true in light of the future annexation of the Chapman/Mulberry neighborhood, slated to occur in roughly three years. Recommendation: The interim Community Development Director recommends adoption of the following: RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHICO INITIATING PROCEEDINGS TO ANNEX PROPERTY NOW LOCATED IN THE UNINCORPORATED TERRITORY OF THE COUNTY OF BUTTE TO THE INCORPORATED TERRITORY OF THE CITY OF CHICO; ESPLANADE ANNEXATION DISTRICT NO. 29 (CITY OF CHICO, ANX 17-01, VARIOUS APNs) (Attachment B) FISCAL IMPACT The fiscal impact of annexations is generally neutral to negative, depending upon the type of land being annexed and other case-specific conditions. For the most part, purely residential annexations do not generate revenue sufficient to cover the cost of providing full municipal services to people living in them. Commercial areas, by contrast, tend to provide more in the way of revenue. The proposed annexation includes lands which are designated by the General Plan for commercial development, and includes some developed commercial properties. It can be expected that as the area develops, the net fiscal result for the City will likely be neutral to positive. DISCUSSION Following Council adoption of the recommended resolution, an annexation application will be filed with Butte LAFCo. LAFCo is responsible for conducting the remaining steps in the annexation process, including another hearing. There will be no further Council consideration or action. LAFCo will consider the annexation at a hearing, receive public comment, and take final action on the proposal. Notice for the LAFCo hearing will be provided through both publicatjon and direct mailings to property owners within the proposed annexation district.

Esplanade Annexation District #29 CC Mtg 07/05/17 Page 2 ENVIRONMENTAL REVIEW Impacts related to the proposed annexation were identified, analyzed, and mitigated, where applicable, in the Chico 2030 General Plan Program Environmental Impact Report (State Clearinghouse # 2008122038) (EIR), which was certified by the Chico City Council in April 2011. The EIR Project Description states - "This EIR is designed to programmatically and comprehensively analyze impacts associated with implementation of the proposed General Plan Update, including expansion of the City's SOI and future annexations consistent with the Land Use Diagram" (emphasis added). Pursuant to CEQA Section 15162 (Subsequent EIRs and Negative Declarations), no subsequent environmental review is required because there are no substantial changes in the project, no new or increased environmental effects anticipated by the project, or any new information about the project revealed since the adoption of the programmatic General Plan EIR. The County has adopted a Mitigated Negative Declaration for the approved auto center project. The County will be responsible for monitoring implementation of any adopted Mitigation Measures for that project. PUBLIC CONTACT A public hearing notice regarding this meeting was posted as a display ad in the Chico Enterprise- Record on June 5, 2017, and was also sent to an interested parties list. The notice was also mailed to the owners of all properties lying within the proposed annexatio bounda Rev\5*«by: -'LI A 77 ill,j yffeo DePaeta, / Interim Community Development Director Prepared by. «Ljd'. 856hdan Vieg, Principl Planner Approved and Recommended by' MAO# Mark Orme, City Manager DISTRIBUTION: City Clerk (3) Steve Lucas, Butte County LAFCo (via email) Supervisor Larry Wahl (via email) Paul Hahn, Butte County Chief Administrative Officer (via email) Tim Snellings, Butte County Development Services Director (via email) Casey Hatcher, Economic & Community Development Manager (via email) Interested Parties List (via email) ATTACHMENTS: A. Figure - Esplanade Annexation District No. 29 B. Council Resolution w/ attachments FILE: ANX 17-01

l EE) 9 COUNTY R SUNSET GOLFCOURSE Z ANNE).ATION AREA COUNTY 9 16 NORTH VALLEY 0 300 READY MIX Feet CITY Esplanade Annexation District No 29 APNs 006-00-(029, 050, 051, 058, 061 and 063-077)-000 CITY,/CHICO.$

1 RESOLUTION NO. 7 3 5 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHICO INITIATING PROCEEDINGS TO ANNEX PROPERTY NOW LOCATED IN THE UNINCORPORATED TERRITORY OF THE COUNTY OF BUTTE TO THE INCORPORATED TERRITORY OF THE CITY OF CHICO; ESPLANADE ANNEXATION DISTRICT NO. 29 (CITY OF CHICO; ANX 17-01; VARIOUS APNs) 6 7 8 9 10 11 12 13 1 15 16 17 18 19 20 21 70 23 2 25 26 27 WHEREAS. there exists within the unincorporated territory of the County of Butte ("County') certain uninhabited property described and depicted in Exhibit A, attached hereto and by this reference incorporated herein ("Property"), which Property is contiguous to the existing boundaries of the City of Chico ("City"). is within the logical boundaries of the territory of City as defined by the primary sphere of influence adopted by the Butte County Local Agency Formation Commission ("LAFCo") for City. and in all other respects meets the requirements of law for annexation of property located in the unincorporated territory o f a county to the incorporated territory o f a city; and WHEREAS. this Council. by this Resolution, now desires to initiate proceedings to annex Property to City, all as provided for by the Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000 Cthe Acf'), as set forth in Division 3, Title 5 ofthe California Government Code section 56000 et seq.; and WHEREAS. notice of intention to adopt the resolution initiating this annexation has been provided to LAFCo, interested agencies and subject agencies; and WHEREAS, this Council certifies that an Amended Master Property Tax Transfer Agreement, pursuant to Section 99(b) of the California Tax Revenue Code, was executed by City and County of Butte on November.1987, and remains in full force and effect: and WHEREAS. the annexation of this Property has been addressed in the Final EIR prepared and certified for the Chico 2030 General Plan update (SCH#2008122038), which programmatically and comprehensively analyzed impacts associated with implementation of the General Plan, including future annexations consistent with the Land Use Diagram; and 28 CA Std Form 6/1/16 R:\FORMS\CAFORMS\CDD STD\Res init annex county to city.doc ATTACHMENT 15

1 2 3 5 WHEREAS, adoption o f the resolution to initiate annexation proceedings for Esplanade Annexation District No. 29 to the incorporated territory of the City of Chico was considered by this Council at a public hearing held on July 5.2017. notice of which was provided through publication pursuant to Government Code Sections 56153 and 5615, as required by Section 56755. 6 7 8 9 NOW THEREFORE, BE IT RESOLVED by the Council ofthe City of Chico as follows: 1. This Council proposes to annex to the incorporated territory of City all of the Property now located in the unincorporated territory ofthe County described and depicted in Exhibit A. 10 11 12 13 1 15 2. This annexation proposal is being made pursuant to the Act, 3. The reason for this annexation proposal is to provide municipal services for existing and future development on the Property,. A plan for providing municipal services to the Property following its annexation to City has been prepared in the manner required by California Government Code Section 56653 and set forth in Exhibit B attached hereto. 16 17 18 19 20 21 5. The annexation of the Property to City, as proposed, is consistent in all respects with the primary sphere of influence developed, determined and adopted by LAFCo for City pursuant to California Government Code section 5625. 6. The annexation of the Property to the incorporated territory of City meets all other requirements ofthe Act and is in all respects consistent with the objectives and purposes of the Act. 22 23 2 25 26 27 28 7. Pursuant to CEQA Section 15162 (Subsequent EIRs and Negative Declarations). no subsequent environmental review is required because there are no new or increased environmental effects anticipated by the proposed annexation, or any new information about the annexation revealed since City Council certification in April 2011 of the Chico 2030 General Plan Program Environmental Impact Report (EIR) (SCH#2008122038), which programmatically and comprehensively analyzed impacts associated with future annexations consistent with the Land Use Diagram. CA Std Form 6/1/16 R:\FORMS\CAFORMS\CDD STD\Res init annex county to city.doc 2

1 2 3 5 6 8. The Council finds that the annexation and proposed use of the Property is consistent with the Citys General Plan. 9. By reason of the foregoing, this Council requests LAFCo to commence proceedings on annexation ofthe Property to the incorporated territory of City within the time and in the manner required by law. 10. The City Clerk is directed to submit a copy of this Resolution to the Executive Officer of 7 LAFCo. 8 9 The foregoing resolution was adopted by the Council of the City of Chico at its meeting held on, by the following vote: 10 AYES: 11 NOES: 12 ABSENT: 13 ABSTAINED: 1 DISQUALIFIED: 15 16 ATTEST: APPROVED AS TO FORM: 17 18 19 20 Deborah R. Presson City Clerk incent C. ES ing. City Attorney* *Pursuant to The Charter of the City of Chico, Section 906(E) 21 22 23 2 25 26 27 28 CA Std Form 6/1/16 R:\FORMS\CAFORMS\CDD STD\Res init annex county to city.doc 3

% 20 COUNTY 2. :. SUNSET i 0 ': GOLF COURSE E 6 2 ANNE>.ATION AREA COUNTY 0 300 NORTH VALLEY F : READY MIX Feet CITY rn mi CC ii Esplanade Annexation District No 29 APNs 006-00-(029, 050, 051, 058, 061 and 063-077)-000 )L C lco./

EXHIBIT B PLAN FOR PROVISION OF SERVICES ESPLANADE ANNEXATION DISTRICT NO. 29 (ANX 17-01) Service Presently Provided by Proposed Provider Fire Protection County of Butte/City o f Chico City of Chico/County of Butte Police Protection County of Butte City o f Chico Domestic Water Service California Water Service Company California Water Service Company Agricultural Water Service NA NA Sewer Service Private Septic. City of Chico Sanitary Sewer City of Chico Sanitary Sewer Solid Waste Private Collector Private Collector Road/Street Maintenance County of Butte City of Chico Power PG&E PG&E Street Lighting Planning & Zoning County of Butte County of Butte City of Chico City of Chico Schools CUSD CUSD