Staff Report. Agenda Item Title: 14-02: Northwest Santa Rosa Reorganization No Sequoia Park Associates, LP

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1 SONOMA LOCAL AGENCY FORMATION COMMISSION 575 ADMINISTRATION DRIVE, ROOM 104A, SANTA ROSA, CA (707) FAX (707) Item 4.1 Staff Report Meeting Date: April 2, 2014 Agenda No. 4.1 Agenda Item Title: 14-02: Northwest Santa Rosa Reorganization No (Sequoia Park Associates, LP) Proposal: Applicant: Location: General Plan: Consent of Property Owner: Environmental Determination: Staff Contact: Reorganization request for one parcel, totaling approximately 30.1 acres, involving annexation to the City of Santa Rosa and detachment from Rincon Valley Fire Protection District and County Service Area No. 41 (Multi-Services) Sequoia Park Associates, LP Generally located west of Fulton Road south of its intersection with West College Avenue, south of Piner Creek, and north of Santa Rosa Creek, in northwest Santa Rosa County Urban Residential; City Mobile Home The owner of the subject parcel, who is the applicant, has provided written consent to the reorganization. Approximately 200 registered voters who reside within the boundary of the proposed reorganization, have not provided consent to the reorganization. Categorical Exemption, pursuant to section 15319(a) of the California Environmental Quality Act Carole Cooper

2 ANALYSIS Background Sequoia Park Associates LP, owner of the Sequoia Mobile Home Park, initiated the subject application, a request for reorganization involving annexation of a single parcel comprising approximately 30.1 acres to the City of Santa Rosa and concurrent detachment from the Rincon Valley Fire Protection District and County Service Area No. 41 (Multi-Services). The subject parcel would be eligible to receive municipal services if annexed. The affected territory is generally located on the west side of Fulton Road, south of its intersection with West College Avenue, south of Piner Creek and north of Santa Rosa Creek, in northwest Santa Rosa. Surrounded almost entirely by territory within City boundaries, the parcel is considered to be an unincorporated fringe island. The wellmaintained parcel, fully developed as a mobile home park with 191 units, is a flat site with a variety of mature trees; the units are grouped into cul de sacs, each generally with six-eight homes. Adjacent territory within City boundaries includes single-family residential sub-divisions to the south and east (across Fulton Road) and a church directly north of the site. Unincorporated agricultural lands are found towards the north/northwest and southwest. The subject parcel is within the City s sphere of influence (SOI), voter-approved Urban Growth Boundary (UGB) and the urban service area boundary (USB) for the City in the Sonoma County General Plan. LAFCO policy is to align a city s sphere with the UGB and USB. At this time, the City s sphere does not coincide in all areas with the other two lines. After research was initiated in 2012 to determine areas which could be included or removed from the City s sphere, staff concluded that the City needed to complete additional planning associated with: (a) needs within the City s planning area, especially for southeast Santa Rosa; (b) development potential for the territory already within the City s sphere, including the 50 unincorporated islands, and (c) the approved development of parcels already in the City. Staff recommended that, based on thenknown conditions as well as the need for the City to assess on the ground development and plan for the future, any change to the SOI was premature. Staff noted that no requests for expansion of the sphere were anticipated, and there was no concurrent need to align the sphere with the UGB. The Commission agreed with staff s recommendation, confirming the SOI and deferring a Municipal Service Review. However, a Municipal Service Review and Sphere of Influence evaluation should be conducted within the next few years. Reason for Proposal The reason for the subject proposal is to allow connection of the mobile home units within the Park to the City s utility system, specifically for access to City water. A higher Item 4.1 Staff Report 2 April 2, 2014

3 level of arsenic than is allowed by State of California standards has been found in the well water used by Park residents. Arsenic occurs as a natural geological presence in the Earth s crust and bedrock, and its release in the environment comes from both natural and man-made activities, such as erosion of natural deposits, runoff from orchards, and glass and electronics production wastes. Production of arsenic, which at one time had been used in making pesticides, ceased in the United States as of People who drink water containing a high level of arsenic may, over many years, experience skin damage or circulatory system problems and may have an increased risk of cancer. In November 2008, as a result of actions taken by the U.S. Environmental Protection Agency, the State reduced the allowable level of arsenic in public drinking water systems from a Maximum Contaminant Level (MCL) of 50 micrograms per liter (mg/l) of water to a MCL of 10 mg/l of water. According to staff of the California Department of Public Health (CDPH), micrograms per liter is the same as parts per billion. One part per billion is equivalent to about three seconds out of a century or one sheet in a roll of toilet paper stretching from New York to London. A good analogy for the MCL for arsenic would be no more than five teaspoons in an Olympic-sized swimming pool. For the Sequoia site, monthly testing found that the arsenic level varied from just below the 10mg/L to much higher. What is called the running annual average (RAA) of testing for arsenic at the site a more accurate calculation of the average of all results from a previous 12 month period - exceeded the MCL; as of December 2013, the RAA was mg/l. The Park has been under a compliance order from CDPH to have its arsenic problem resolved. Proposition 84, the Safe Drinking Water, Water Quality and Supply, Flood Control, River and Coastal Protection Bond Act of 2006 provided for grants and loans to local agencies to cover costs associated with projects to provide safe drinking water for California residents. In February 2012, the City of Santa Rosa was awarded a grant to fund a solution to the arsenic contamination issue at the Sequoia Mobile Home Park. The current allocation of grant funds is sufficient to cover the costs associated with the City s pre-zoning and LAFCO actions for this application. City staff anticipates that further funding, to pay for the costs of connecting the Park to the City s system, would come from the State, and staff members are preparing an application to pursue this. CDPH staff indicates that, if the City submits a complete application by the required deadline, funding is pretty certain. If the City does not receive the funding, the property owner would be responsible for complying with the MCL State standard for arsenic. City Actions: Pre-Zoning and Environmental Review On November 5, 2013, the Santa Rosa City Council pre-zoned the affected territory to the Mobile Home Park (MH) District consistent with the Mobile Home Residential Land- Use designation of its General Plan. This designation allows mobile home development Item 4.1 Staff Report 3 April 2, 2014

4 in a range of 4-18 units per acre; the Park s existing density is 6.39 units per acre, within the designated range. The City s ordinance is attached to this report. The City determined that the project qualified for a Categorical Exemption from the California Environmental Quality Act (CEQA) pursuant to section 15319(a) of the state CEQA Guidelines, in that the parcel contains private structures developed to the density allowed by the current zoning or pre-zoning of either the gaining or losing governmental agency whichever is more restrictive, provided, however, that the extension of utility services to the existing facilities would have a capacity to serve only the existing facilities. As indicated earlier in this report, 191 mobile home units are located on the Park site. No further development is planned. Capacity to Serve; Plan for Services The City states that annexation of the affected territory was anticipated under the City s 2035 General Plan, which the City Council adopted in November A Water Supply Assessment, conducted in support of the Plan, found that the City had adequate water supplies to meet existing and planned future demands, including projects such as serving the units within the Sequoia Mobile Home Park. Water resources include the City s allocation as a contractor of the Sonoma County Water Agency, City wells, and recycled water. The plan for services submitted with the application for reorganization indicates that water service would be provided from an existing water main located at the easternmost boundary of the Park, within the Fulton Road right-of-way. Since more than 100 units are involved, the City requires a dual-feed water service system. One service would provide domestic, irrigation, and fire service, and the second would provide domestic and fire service connections. As indicated earlier, costs associated with design and construction of the proposed water system improvements would be financed through Proposition 84 funds. The existing on-site well, while continuing to be used to irrigate a common area, would be permanently severed from the domestic water supply systems. Other Services The City of Santa Rosa has provided sanitary sewer service to the Sequoia Mobile Home Park since 1970; no changes to the existing service are anticipated. Storm drainage flows through the private streets of the development into the existing inlet structures and storm drain system to ultimately flow into either Piner Creek or Santa Rosa Creek; no changes or improvements are anticipated for this system. An existing 83-acre park, A Place To Play, is located across Fulton Road and down West Third Street, less than a mile southeast of the affected territory. Regarding public safety services, the plan for services states that calls for police services are not anticipated to significantly increase due to the subject annexation; 191 units are considered an incremental addition to the number of residential units in the City. On-site infrastructure for fire suppression would be upgraded: a water line would Item 4.1 Staff Report 4 April 2, 2014

5 be dedicated to serve fire hydrants which would be replaced to meet current City standards. Registered Voters; Protests; Option to Waive Protest Hearing Although the proposal was initiated by the property owner, the approximately 200 voters who reside within the annexation boundary have not provided their written consent to the annexation. Thus, as provided in state law, the Commission must conduct a noticed public hearing on the merits of the proposal. Staff sent to the property owner and to each voter within the boundary a Notice of Public Hearing (NOH) for the Commission proceedings. As required, this notice was also sent to owners of property and registered voters residing within 300 feet of the outside boundary of the affected territory; in addition the notice was published in the Press-Democrat and posted on the Commission s website. Although state law directs that the Commission, upon approval of a proposal with less than 100% consent, must conduct a subsequent hearing to allow registered voters the opportunity to protest the Commission s action, a change in the law as of 2013 allows the Commission the option to waive that hearing if the original notice to owners and voters acknowledges the waiver as the Commission s intention unless written opposition to the proposal is received prior to the conclusion of the Commission proceedings. Such information was included in the NOH for the subject proposal. As indicated in the Recommendation section below, staff is recommending approval of the proposed reorganization. After its review and consideration, the Commission could determine to approve or deny the proposal. Should the Commission approve, Commissioners will not know, until the close of the Commission proceedings on April 2, whether or not written opposition has been submitted, so as to determine the next step in the process, that is: (1) to waive the protest hearing due to no written opposition or (2) to schedule a protest hearing to receive protests: (a) because written opposition was submitted by the conclusion of the Commission proceedings or (b) because the Commission chooses to conduct that hearing, notwithstanding the lack of written opposition. Should the Commission approve the proposal, staff has prepared a draft resolution which includes a waiver of the protest proceeding. This is based on the fact that, as of the writing of this report, staff has received no written opposition from registered voters residing within the annexation boundary. In addition, when the Santa Rosa City Council conducted a public hearing on the pre-zoning, no one spoke against the proposal. If the Commission approves the proposal and if either: (1) written opposition is received by the conclusion of the Commission proceedings or (2) no written opposition is received but the Commission wishes to conduct a protest hearing, staff requests that the Commission direct staff to amend the draft resolution. Changes in language would be made in sections referring to the protest proceedings, to reflect the Commission s Item 4.1 Staff Report 5 April 2, 2014

6 order to conduct a protest hearing at an upcoming Commission meeting, specifically: (1) at the end of the title (page 1); (2) in Section 1.5 (page 2); (3) in Section 3.5 (pages 3-4); and (4) in Number 9 (page 4). State law requires that, should the Commission order a protest proceeding, the Executive Officer will provide notice of the date of that hearing, within 35 days of the Commission s approval of the proposal. The protest hearing must be between 21 and 60 days after the date of the notice. Registered voters must provide their written protest between the date of the publication of the NOH and the conclusion of the protest hearing. The level of protest determines whether the proposal goes forward, is terminated, or goes to an election by registered voters residing within the boundary. If the Commission denies the subject proposal, staff will prepare a different resolution and present it at the next Commission meeting for final approval. Individual Factors for Consideration California Government Code describes 15 factors to be considered in the Commission s review of an annexation proposal. The review must include, but is not limited to, consideration of these factors that are outlined and addressed in Attachment 2. Summary Staff s analysis found that the proposal meets the Commission s criteria for approval of reorganization of the subject territory, involving annexation of the Sequoia Mobile Home Park to the City of Santa Rosa and detachment from Rincon Valley Fire Protection District and County Service Area No. 41 (Multi-Services). Annexation of the parcel to the City would allow access to the City s water system to alleviate contamination of the Park s drinking water. The affected territory, a fringe island, is contiguous to City boundaries, within the City s sphere of influence and voter-approved Urban Growth Boundary, and within the urban service area boundary of the Sonoma County General Plan. The City states that it can serve the affected territory. RECOMMENDATION 1. Approve the reorganization as proposed, pursuant to the following findings: a. The affected territory is contiguous to the boundaries of the City of Santa Rosa, within the City s sphere of influence, Urban Growth Boundary, and the urban service area boundary for the city as designated in the Sonoma County General Plan. b. The purpose of the reorganization is to allow connection to the City s water utility system to alleviate the need for residents of the affected Item 4.1 Staff Report 6 April 2, 2014

7 territory, a mobile home park, to use the park s well water, which has been contaminated by arsenic, creating a threat to public health and safety. c. The City of Santa Rosa has determined that the proposal is consistent with the land-use designation of its general plan. d. The City of Santa Rosa indicates that it can provide services to the affected territory. 2. Exempt the proposal from the California Environmental Quality Act (CEQA) pursuant to Section 15319(a) of the State CEQA Guidelines. 3. Waive protest proceedings. ALTERNATIVE RECOMMENDATION 1. The Commission may deny the proposed reorganization because the City s sphere of influence is not aligned, in its entirety, with the City s Urban Growth Boundary, in compliance with Commission policy. Staff does not recommend this alternative. Although the sphere, the UGB, and the USB are not totally aligned, they do coincide in the area surrounding the affected territory. In addition, the Sequoia Mobile Home Park is subject to a compliance order from the California Department of Public Health to deal with contamination of arsenic in the drinking water that is available for its residents. Funding has been awarded, and the City of Santa Rosa has indicated both its willingness to annex the parcel and its ability to serve. 2. The Commission may determine to order a protest proceeding if one of the conditions exists: (1) Written opposition to the proposal is received by the conclusion of the Commission proceedings or (2) The Commission chooses to order a protest proceeding, regardless of any protests and notwithstanding lack of written opposition. Condition 1: If written opposition is received, state law requires the Commission to conduct a protest hearing. Condition 2: staff does not recommend this alternative. State law provides the waiver option if no written opposition is received. Staff does not believe that any benefit will accrue with noticing and conducting another hearing since all voters were provided individual notice which stated the Commission s intention to waive such a hearing if no one opposed beforehand. Item 4.1 Staff Report 7 April 2, 2014

8 Voters have been provided a due process opportunity. In addition, the conduct of another hearing would incur the cost of a notice in the newspaper as well as copying and mailing costs and staff time to complete the work. ATTACHMENTS 1. City of Santa Rosa Ordinance 2. Factors for Consideration 3. Draft Resolution 4. Preliminary Map and Boundary Description Item 4.1 Staff Report 8 April 2, 2014

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