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HomeMy WebLinkAbout2019-014 County of San Luis ObispoATTACHMENT MEMORANDUM OF AGREEMENT BETWEEN THE CITY OF ATASCADERO AND THE COUNTY OF SAN LUIS OBISPO REGARDING THE CITY'S SPHERE OF INFLUENCE This Agreement between the City of Atascadero (hereafter "City") and the County San Luis Obispo County (hereafter "County") is entered into by the City on this 22nd day of October, 2019, and by the County on this 10-6� day of , 2019. WITNESSETH WHEREAS, the Cortese/Knox/Hertzberg Act ("the Act") requires the Local Agency Formation Commission (LAFCO) to update the Spheres of Influence for all applicable jurisdictions in the County every five years, as needed; and WHEREAS, the City and County entered into this Memorandum of Agreement (MOA) in 2003, and 2011 as part of updating the City's Sphere of Influence (SOI) Update; and WHEREAS, the City and County have been working together to implement the existing MOA with regard to the SOI and specifically the proposed Study Area #4 (Formerly the Eagle Ranch project); and WHEREAS, this updated MOA assists in clarifying the roles, responsibilities, and intentions of each jurisdiction and identifies the processes for working together in the future; and WHEREAS, a Sphere of influence is defined by Government Code 56076 as a plan for the probable physical boundaries and service area of a local agency, and pursuant to Government Code 56425 has been identified and agreed to by the County of San Luis Obispo and the City of Atascadero as shown in Exhibit A; and WHEREAS, the Act further requires that a Municipal Service Review be conducted prior to or, in conjunction with, the update of a Sphere of Influence and such a Municipal Service Review has been prepared by LAFCO staff in accordance with Section 56430 of the California Government Code as a means of identifying and evaluating public services provided by the City of Atascadero and changes to the City's Sphere of Influence; and WHEREAS, the City and County have reached agreement regarding the Sphere of Influence boundaries (Exhibit A), and the provisions that should guide development (Exhibit B) Memorandum of Agreement Page 1 of 14 City of Atascadero- County of San Luis Obispo ATTACHMENT to ensure that development within the SOI occurs in an orderly and logical manner; and WHEREAS, the City's General Plan provides a clear policy base for growth and development in the Sphere of Influence areas and defines programs that the City will implement to ensure the orderly development of the City of Atascadero; and WHEREAS, the County's General Plan goals in Framework for Planning and the Salinas River and El Pomar-Estrella Area Plans call for Community Separators to provide for a community's distinctive identity and preserve the rural character of the areas between and on the fringes of communities and cities; and WHEREAS, the Study Area 4 4 (Eagle Ranch Area) includes approximately 452 original colony lots that much of the Eagle Ranch Area could be developed in the County if issues associated with access, fire hazards, wastewater and other infrastructure are resolved and appropriate mitigation is incorporated for the City; and WHEREAS, LAFCO is required by Government Code 56425 (b) to give "great weight" to this agreement in making its final determination regarding the City's Sphere of Influence. NOW, THEREFORE, the parties agree as follows: 1. The Sphere of Influence boundary contained in Exhibit A provides for the orderly and logical growth for the City of Atascadero and represents an appropriate 20 -year growth boundary based on existing information and current circumstances. 2. The provisions contained in Exhibit B provide guidance for orderly development of the Sphere of Influence while considering the General Plan for the City and the County. 3. The provisions contained in Exhibit B are intended to provide the City and the County with the basis for developing specific land use policies and standards for the areas in the City of Atascadero's Sphere of Influence and do not supersede or limit the planning or environmental review process of either jurisdiction or legally bind either jurisdiction. 4. The City and County shall use their General Plans to guide the logical and orderly development of these Sphere Areas while protecting agricultural and open space lands. Memorandum of Agreement Page 2 of 14 City of Atascadero- County of San Luis Obispo �IWAT$];lLy CITY OF ATASCADERO Mci Heather Moreno, Mayor ATTEST: r 1 ara . Chrisiense , d-' Clerk Dated: it • 4. APPROVED AS TO FORM AND LEGAL EFFECT: Brian A. Pierik, City Attorney Dated: �U Memorandum of Agreement Page 3 of 14 City of Atascadcro- County of San Luis Obispo ATTACHMENT COUNTY OF SAN LUIS OBISPO 1>di,P. -Ama is Chair, Board of Supervisors ATTEST: WADE HORTON Ex -Officio Clerk of the Board of Supervisors By: Deputy Clerk APPROVED AS TO FORM AND LEGAL EFFECT: RITA L. NEAL County Counsel t Dated: I l. J�-- 19 Memorandum of Agreement Page 4 of 14 City of Atascadero- County of San Luis Obispo ATTACHMENT EXHIBIT A SPHERE OF INFLUENCE BOUNDARY MAP 77 C, Legend N Major Roads W�E City Limits S<o LW Sphere of influence S Memorandum of Agreement Page 5 of 14 City of Atascadero- County of San Luis Obispo ATTACHMENT EXHIBIT B PROVISIONS The following provisions are agreed to and shall be considered by the City of Atascadero and the County of San Luis Obispo when guiding development within the proposed Sphere of Influence as described in Exhibit A when updating their General Plans. 1. Intent. It is the intent of the County and the City to work cooperatively towards the goal of the orderly development of the agreed upon Sphere of Influence (as shown in Exhibit A) consistent with the Cortese/Knox/Hertzberg Act, the City and County General Plans, the California Environmental Quality Act and any other applicable laws and regulations. 2. Interagency Cooperation. The City and the County shall work cooperatively to plan for future land uses and public services and facilities to improve and maintain area circulation connections, and to preserve agricultural land and open space. The City and County will consider the creation and implementation of various assessment and financing mechanisms for the construction and maintenance of public improvements, such as roads, utilities, recreation and trail improvements, parks and open space, and similar improvements that could serve visitors and residents of the City and the County. Discretionary development projects and General Plan Amendments within each agency's jurisdiction shall be referred to the other for review and comment prior to action on a development proposal. The County shall seek the City's comment regarding projects in the referral area identified in Exhibit C. Per provision 12 below a higher level of coordination shall take place for projects in the areas of focus described in that section. The City shall seek the County's comment regarding projects that affect unincorporated areas surrounding the fringe area of the city. Face to face meetings, upon request from either the City or the County, are encouraged for any high-level projects to ensure the goals of each agency are being met. When a discretionary project application is accepted for processing, it shall be referred immediately to the following contact person(s) for early review and comment: Director, Community Development Director Department of Planning and Building Community Development County of San Luis Obispo City of Atascadero County Government Center 6500 Palma Ave 976 Osos Street, Room 300 Atascadero, CA 93422 San Luis Obispo, CA 93408 Memorandum of Agreement 6 City of Atascadero- County of San Luis Obispo Page 6 of 14 ATTACHMENT This provision shall not supersede other methods of commenting or providing feedback regarding a proposal or project. 3. Impact Mitigation. In evaluating any proposed development, the agency considering approval (City or County) should rely solely on its own capability to provide the required services to that development. The City and the County shall not presume any services will be provided by the other agency without documenting that such services will be provided. Development/mitigation fees needed to offset the impacts from development projects approved by either jurisdiction in the Referral Area (Exhibit C) shall be collected and distributed in a fair and equitable manner. These fees shall be paid to the City and/or the County in proportion to the location and degree of project impacts; however the total fees paid shall not exceed the cost to mitigate the specific project impact. Mitigation to offset significant impacts to fire, law enforcement, emergency medical services, water and wastewater treatment services, roads and streets, other public services, and housing, should be incorporated into the conditions of approval for projects on a case by case basis. Documentation should be provided that identifies the project's fiscal, infrastructure, housing, and service impacts to both the City and the County and shall be considered as part of the development review process. The documentation shall be used to prepare conditions of approval and to allocate impact fees where allowable and as appropriate. 4. Fire and Law Enforcement Services. Service Levels and costs associated with fire and emergency response services shall be given special attention. The County and City shall develop a mutual aid agreement specific to the SOI area and the study areas with the City's Police and Fire Department, the County Sheriff, and County Fire/Cal Fire regarding development in the unincorporated areas that would impact fire and emergency response service levels. This agreement should include the provision of those services to include open space and trails. The purpose of this agreement is to identify and discuss fiscal and resource impacts of development related to fire and emergency services, service delivery impacts of development on the fringe, and appropriate mitigation and cost sharing measures. 5. Mutual Agreements for Study Area #4 (Eagle Ranch). The County shall limit the development in the Sphere of Influence area to that which is allowed by the current land use designations unless General Plan and land use ordinance amendments are Memorandum of Agreement 7 City of Atascadero- County of San Luis Obispo Page 7 of 14 ATTACHMENT approved. The County and City acknowledge that the proposed SOI area includes several hundred parcels not under Williamson Act Contracts that could be developed with single-family homes. Residences and other currently allowable uses may be permitted pursuant to the land -use policies, standards and ordinances of the County. Recognizing that the existing Colony lots have entitlements to water supply from Atascadero Mutual Water Company, it is the intent of the City to provide other services to these areas if they are eventually annexed to the City. The County shall consider this when reviewing projects in this SOI area. Any project proposed in the County and within the proposed SOI area that is subject to an Initial Study under CEQA, may call for a City -County staff conference to discuss a proposed project early in the approval process prior to completion of the Initial Study. The purpose of the conference would be to discuss the City's and County's General Plan policies with regard to the project and to identify any key issues that may need special attention. 6. City/County Cooperation. For a County project proposed prior to annexation, the City and County will cooperate to evaluate the creation and implementation of various assessment and financing mechanisms for the construction and maintenance of public improvements, such as roads, utilities, recreation and trail improvements, parks and open space, and similar improvements that could serve visitors and residents of the City and the County. 7. Agriculture and Open Space. The City and the County shall work together to permanently preserve agricultural and open space resources within the SOI area using conservation easements and/or other preservation methods or tools. The open space and agriculture areas shall be identified in the Specific Plan and EIR. 8. Land Uses. The areas included in the SOI as described in Exhibit A may include residential, mixed-use, public facilities, visitor -serving, agriculture uses, open space, and/or recreational uses in a manner integrated into the City's plans for annexation and development for this area. The City's adopted General Plan Policies will be used as a basis of preparing plans for the area. The County's policies will be considered by the City with the purpose of supporting and complementing the City's vision for the area. Once annexed, the City's General Plan and/or Specific Plan will be implemented for the Sphere of Influence area. The following goals should be considered in developing Memorandum of Agreement 8 City of Atascadero- County of San Luis Obispo Page 8 of 14 r_Nrrally:b•,IaaItf the Specific Plan: a. Creation of walkable and bicycle friendly neighborhoods with logical connections and future transit opportunities if feasible. b. Planning for a trail system to accommodate pedestrians, bicyclists and equestrians which connects to the existing community. c. Development of a range of housing opportunities and choices. d. A land use pattern that clusters development in a manner that reduces environmental impacts. e. Evaluate consistencies with San Luis Obispo Council of Governments (SLOCOG) Regional Transportation Plan and Sustainable Communities Strategies. f A land use pattern that addresses jobs/housing balance and lowers vehicle miles traveled. 9. General Plan Amendment. The City intends to complete environmental review, pre - zoning, pre -annexation, and any necessary pre -general plan amendment activities prior to or concurrent with an annexation proposal being processed by LAFCO. The County intends to complete any necessary amendments to its General Plan in the Salinas River Area Plan to reflect the annexation of territory to the City of Atascadero. 10. Zoning Requirements/Specific Plan. A Specific Plan, which identifies land uses within the Sphere of Influence areas, shall be prepared and adopted by the City prior to the annexation of the property into the City. In accordance with its General Plan, CEQA review of the Specific Plan shall include analysis of issues related to completing the annexation, such as a reliable and adequate water supply, sewer capacity, affordable housing opportunities, and other services for the proposed project. The Specific Plan for the Sphere of Influence area shall be prepared consistent with Policy 1.2 of the City's General Plan. Programs related to the Sphere of Influence area in the City's General Plan that shall be implemented under policy 1.2 include eight, nine, ten, and eleven. 11. Property Tax Agreement and Process. Revenue and Taxation (R&T) Code §99 provides the state law that governs processing tax exchange agreements for annexations. R&T Code §99(b)(6) requires that a resolution approving a negotiated property tax agreement be submitted to LAFCO by both the County and City before any annexation can be processed. Prior to processing any annexation the City and County are required to approve a property tax agreement. The City and County may Memorandum of Agreement 9 City of Atascadero- County of San Luis Obispo Page 9 of 14 ATTACHMENT use the existing Master Agreement for negotiations, or they may consider a separate agreement that specifies a different property tax allocation formula. This is allowed under the revenue and tax code of the State of California. The southern area of the City's west side within Study Area #4 which consists of the former Eagle Ranch area has unique circumstances in terms of services and costs. The County and City should negotiate a separate tax agreement for the Eagle Ranch area to address the service issues and costs faced by the City. This special circumstance includes the existing lot configuration with the potential of approximately 452 original colony lots. Therefore much of the Eagle Ranch Area could be developed in the County if access, fire hazard mitigation and other infrastructure can be addressed. Also the area is adjacent to a larger conservation open space easement area with very high fire danger. Much of the study area is also considered a very high fire danger that may increase fire service and risk to the City of Atascadero and surrounding neighbors. Development of this area will need to address both fire response and emergency services such as law enforcement and medical aid. The City and County should take these factors into consideration along with property tax and tax rate, community facility district contributions, and any other funding mechanisms to support future development if and when negotiations are started for any future annexation of the Eagle Ranch site. A special study funded by the County and City may help identify a tax agreement formula for the agreement. 12. Areas of Focus (Study Areas #1, #2, & 43 see Referral Map Exhibit Q. Areas surrounding the City's eastern border that includes the Salinas River corridor, Rocky Canyon Road/Templeton Road, the surrounding agricultural lands, sand gravel landscape materials, and horse ranches generally have some impacts to various city services such as roads, recreation, fire and police. Other areas just south of the City are also within the unincorporated county under Residential Suburban. These areas are outside of the City's sphere of influence but within the referral area identified in Exhibit C. Under the County's cannabis ordinance additional negative impacts such as air and visual quality, noise, night sky, pesticide use, water quality, and misconduct and security measures have the potential to affect the City and nearby residents. Any future land use changes in these areas should have a greater meaning on project referrals for review and comment by the City during county discretionary permitting. Memorandum of Agreement 10 City of Atascadero- County of San Luis Obispo Page 10 of 14 ATTACHMENT Salinas River Area east of the City - This area generally covers 1,124 acres located just east of City limits and considered as Study Area Two. A total of 58 parcels exist of which 4 are vacant lots. A total of 199 people reside in the area, average lot size is 19.3 acres. The smallest lot is 0.04 acres and the largest is 175 acres. The average assessed property value is $589,273. This area includes Mustang Mobile Village consisting of 13 units, Heilmann Salvage & Metals Inc., Ben's Meat Cutting, and cultivation operations. The City expresses concerns for increased density or intensity in the area and that existing residences or mobile home parks are adequately serviced or any new projects approved by the County have adequate services for water, sewer, fire, emergency response and law enforcement needs. South Atascadero (Eaglet Area) — This area generally covers 2,082 acres and 743 existing residences and considered as Study Area Three. A total of 752 parcels exist of which 69 are vacant lots. A total of 1,911 people reside in the area, average lot size is 2.7 acres. The smallest lot is 0.01 acres and the largest is 21.7 acres. The average assessed property value is $344,556. This area includes former site of Country Care Convalescent Hospital, which closed in 2017. The City expresses concerns for increased density or intensity in the area and that existing residences or the Convalescent Hospital site are adequately serviced or any new projects approved by the County have adequate services for water, sewer, Fre, and emergency response needs. Memorandum of Agreement I I City of Atascadero- County of San Luis Obispo Page 11 of 14 js 4W^ e ATTACHMENT EXHIBIT C PROJECT REFERRAL MAP o. ■ STUDY AREA #1: E. SALINAS RIVER/NORTH Hwy 41 STUDY AREA #2: E. SALINAS RIVER/SOUTH Hwy 41 Memorandum of Agreement 13 City of Atascadero- County of San Luis Obispo Page 13 of 14 ATTACHMENT EXHIBIT C PROJECT REFERRAL MAP cm STUDY AREA #3: EAGLET/SOUTH ATASCADERO STUDY AREA #4: FORMER EAGLE RANCH PROJECT Memorandum of Agreement 14 City of Atascadero- County of San Luis Obispo Page 14 of 14