Report Prepared by: Kim Espinosa, Planning Manager, Development Services Department
Title
SUBJECT: Report to Consider Final Pre-Application Process for Annexations Involving Early Consultation with the City Council
REPORT IN BRIEF
Considers approving a new Pre-Application Process for Annexations, which will involve early consultation with the City Council.
RECOMMENDATION
City Council - Adopt a motion approving the new Pre-Application process for Annexations as outlined in the report.
Body
ALTERNATIVES
1. Approve the process as recommended by staff; or,
2. Direct staff to make changes to the process prior to implementation; or,
3. Request further information before giving final Council approval.
AUTHORITY
The Cortese-Knox-Hertzberg Local Reorganization Act of 2000 establishes procedures for city annexations and other local government changes in organization.
CITY COUNCIL PRIORITIES
In the FY 20-21 City Council Goals and Priorities, “Future Annexations/Growth of City/Sewer Master Plan” is listed under Goal Area 5, Future Planning.
DISCUSSION
Previous City Council Direction
On August 17, 2020, and October 19, 2020, EMC Planning Group and City staff presented updates to the City Council on the North Merced Annexation Feasibility Study, Annexation Applications and Procedures, and the Interim Wastewater Capacity. The City Council expressed support for an Annexation Pre-application Process with the following provisions:
• Participation is voluntary
• Pre-applications would be reviewed on a continuous basis as they were submitted (no set time frame for submittal or review of all pre-applications at once)
• No public hearings or notification of surrounding property owners would be required
• No Planning Commission involvement
• Use of the existing General Plan policy regarding annexations as the “merit criteria”
On February 16, 2021, the City Council discussed the possible annexation of the UC Merced campus and directed staff to proceed with preparing the environmental review and application to LAFCO over the next 8 to 12 months.
On March 15, 2021, City staff provided the City Council with more information about the Annexation Pre-Application Process and the associated Conditional Wastewater Collection Capacity Allocation process. Correspondence was received from five stakeholders regarding the process, with most of the focus on the wastewater issues. Council expressed general support for moving forward with both processes.
Since March 2021, the understanding of the City’s wastewater situation regarding both future and interim capacity has changed significantly as outlined to the City Council in a study session on June 7, 2021. Because of these changes, the Conditional Wastewater Collection Capacity Allocation process is no longer needed. Therefore, staff is proceeding with finalizing the Annexation Pre-Application Process only at this time.
Proposed Annexation Pre-Application Process
Based on the previous City Council direction, City staff have developed an “Annexation Pre-Application Process” as follows:
1) Applicant submits an “Annexation Pre-application” along with supporting materials as shown in Attachment 2. Based on the level of staff effort required to process these pre-applications, Staff is recommending that the fee would be equivalent to the current fee charged for a Major Site Plan Review application, which is $1,135 in 2021. (That fee will be credited against a future annexation application.)
2) Planning staff will schedule meeting(s) with City staff members representing various City Departments (i.e. Police, Fire, Engineering, Public Works, Economic Development, Parks, etc.), as well as Merced County Local Agency Formation Commission (LAFCO) staff to discuss the pre-application with the applicants, including the inclusion of additional properties if recommended by LAFCO.
3) Planning staff will schedule the pre-application for a regularly scheduled City Council meeting. No public hearing or notification to existing property owners shall be required.
4) Planning staff will prepare a report for City Council with the relevant information on the project and provide an analysis of how well the project addresses the “merit criteria” as described in the next section. An analysis of the project’s infrastructure needs would also be included in consultation with Engineering and Public Works staff.
5) The City Council will weigh various factors to determine if the pre-application has sufficient merit to move forward, including the consistency with the “merit criteria,” the applicant’s demonstrated capacity to develop the project, the project’s design quality, and community benefits being offered. The City Council will then indicate general support or non-support for an official annexation application moving forward.
6) After the City Council meeting, it would be up to the applicant to decide if they wanted to move forward with an official annexation application or not.
General Plan Policy Regarding Annexations/Merit Criteria/Community Benefits
On October 19, 2020, the City Council gave direction to staff to use the existing Merced Vision 2030 General Plan Implementing Action Urban Expansion UE-1.3.g as the “merit criteria” for evaluating future annexation requests (shown below):
“1.3.g Evaluate future annexation requests against the following conditions:
a) Is the area contiguous to the current City limits and within the City’s Specific Urban Development Plan (SUDP)/Sphere of Influence (SOI)? Do the annexed lands form a logical and efficient City limit and include older areas where appropriate to minimize the formation of unincorporated peninsulas?
b) Is the proposed development consistent with the land use classifications on the General Plan Land Use Diagram (Figure 3.1)?
c) Can the proposed development be served by the City water, sewer, storm drainage, fire and police protection, parks, and street systems to meet acceptable standards and service levels without requiring improvements and additional costs to the City beyond which the developer will consent to provide or mitigate?
d) Will this annexation result in the premature conversion of prime agricultural land as defined on the Important Farmland Map of the State Mapping and Monitoring Program? If so, are there alternative locations where this development could take place without converting prime soils?
e) Will a non-agricultural use create conflict with adjacent or nearby agricultural uses? If so, how can these conflicts be mitigated?
f) Does annexation of the area help the City reach one of the following goals?
1) Does annexation of the area bring the City closer to annexation of the UC Merced campus and University Community?
2) Does the area contain significant amounts of job-generating land uses, such as industrial, commercial, office, and business/research & development parks?
3) Does the project provide key infrastructure facilities or other desirable amenities, such as the extension of major roads, utility trunk lines, parks and recreational facilities, etc.?”
Besides the criteria noted above, the Council would also look at other factors, including community benefits being offered by the project. These community benefits could include such things as constructing or funding affordable housing, constructing infrastructure or public facilities (i.e. parks, public transit, bike and roadway projects, sewer/water trunks, renewable energy projects, public health facilities, etc.) above what would normally be required of development; or funding of social programs (i.e. homeless, job training, recreation, etc.). Project design quality, the applicant’s track record of successful development, the applicant’s financial ability to ensure the development will move forward, and other factors could also be considered.
Stakeholder Input
City staff sent out a draft copy of the March 25, 2021, administrative report to approximately 25 stakeholders that the City has been working with on various annexation requests. City staff received a total of five responses, with concerns raised about the wastewater process only, so those letters are not included in this report. There was unanimous support for moving forward with the Annexation Pre-Application Process and City staff has been receiving multiple inquiries from developers and property owners eager to utilize the new process.
City Council Action
After reviewing the above information, City staff is asking the City Council to authorize moving forward with implementing the Annexation Pre-Application Review Process as outlined above and authorizing staff to begin accepting the annexation pre-applications to bring forward to City Council for early consultation.
IMPACT ON CITY RESOURCES
There is no impact on City resources with this request.
ATTACHMENTS
1. Draft Annexation Pre-application Packet
2. Presentation