Title
SUBJECT: Report on the County Islands within City Limits
REPORT IN BRIEF
Discussion on the County Islands within City Limits and the State Laws that Regulate the Annexation of Those Islands.
RECOMMENDATION
Provide direction to staff on next steps.
Body
DISCUSSION
The Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000 (CKH Act, California Government Code §56000 et seq.) regulates annexations.
Annexations must be approved by LAFCO.
There are different types of annexations:
• Standard Annexation (annexation to a city or district)
• Annexation to correct boundary anomalies
• Island Annexation (isolated unincorporated areas within a city boundary)
City of Merced has recently considered several standard types of annexations. Except for specific properties surrounding the University of California Campus, most of the annexation projects are located contiguous to the City of Merced jurisdictional boundary.
County islands usually happen because of other annexations that don’t include the county developed or undeveloped property. It happens over time, leading to an island of unincorporated land.
The Cortese-Knox-Hertzberg Local Government Reorganization Act (CKH Act) defines an island as: an unincorporated area that is completely surrounded by a city or substantially surrounded such that it could be logically annexed.
An annexation can involve an election or no election. It can also involve a protest hearing under certain circumstances. When LAFCO reviews the annexation proposal state law sets thresholds for triggering a public election:
In an inhabited area, where 12 or more registered voters live within the boundaries of the proposed annexation, written protests may be filed. If 25% to 50% of registered voters—or more than 25% of landowners—submit a protest, an election is required, allowing the annexation to be put to a vote by affected voters. If protests are fewer than 25%, the annexation proceeds without an election. If protests exceed 50% of registered voters, the annexation is denied outright, with no public vote held.
Under law protest proceedings are waived if the following requirements are met:
1. Annexation is proposed by resolution of the annexing city.
2. The island is 150 acres or less in size.
3. The island is surrounded or substantially surrounded by the annexing city or by the annexing city and adjacent cities.
4. The island is not a gated community where services are currently provided by a community services district.
5. The island is substantially developed or developing based on the availability of public utilities, presence of public improvements or the presence of physical improvements on the parcels within the area.
6. The island is not prime agricultural land as defined in Government Code Section 56064.
7. The island is receiving benefits from the annexing city or will benefit from the city.
8. The island was not created after January 1, 2000.
When Considering County Islands, The City must consider SB 244 (Wolk, 2011). This law amended the Cortese-Knox-Hertzberg Local Government Reorganization Act and other statutes to ensure that disadvantaged unincorporated communities (DUCs) are considered in city annexations and in municipal service planning.
Under the law the definition of a Disadvantaged Unincorporated Community (DUC) is:
An unincorporated community with 10 or more dwellings where the median household income (MHI) is 80% or less of the statewide MHI.
SB 244 Requires that cities and LAFCOs must consider disadvantaged unincorporated communities when evaluating annexations or sphere of influence (SOI) updates.
Before LAFCO can approve an annexation to a city, it must determine whether a DUC exists adjacent to or near the area. If so, LAFCO must include that community in the annexation (or explain why it is not included).
A few of the islands shown on the Map (Attachment 1) are considered DUCs by LAFCO. Staff has also attached the Disadvantaged Unincorporated Community map (Attachment 2) developed by LAFCO.
Why County Islands aren’t preferable:
1. Service gaps can occur – i.e. refuse or tree trimming services.
2. Approved County infrastructure can fail leading to City support anyway – City provides some water and sewer for some of the current islands because of this.
3. Public Safety or City Service inefficiencies or confusion – not so much for City or County staff, but for those living in the islands.
Annexation Procedure
• Application to LAFCO - Usually submitted by property owners, the city, or district.
• Environmental Review (CEQA) - LAFCO may act as lead agency or defer to the city/district.
• Notice & Public Hearing - LAFCO must provide notice to all affected parties. Public hearing required per CKH procedures.
• LAFCO Decision - Approve, approve with conditions, or deny.
• Election (if required) - Conducted to confirm consent of property owners or voters.
• Recordation & Filing - Annexation is filed with the Secretary of State and the County Recorder.
Staff requests that the City Council provide give direction and provide next steps.
ATTACHMENTS
1. Map of County Islands
2. LAFCO 244 Map
3. Presentation