CITY COUNCIL STAFF REPORT
MEETING DATE: June 17, 2015
PREPARED BY: Andrew Crabtree, Director/Community Development Department
APPROVED BY: City Manager
Title
CONTRACT IN AN AMOUNT NOT TO EXCEED $29,925 FOR THE PREPARATION OF A FISCAL IMPACT ANALYSIS FOR A PROPOSED URBAN SERVICE AREA EXPANSION IN THE SOUTHEAST QUADRANT
END
RECOMMENDATION(S)
RECOMMENDATION
Adopt Resolution to enter into a contract with BAE Urban Economics, Inc., for the preparation of a fiscal impact analysis for a proposed Urban Service Area expansion in the Southeast Quadrant.
BODY
COUNCIL PRIORITIES, GOALS & STRATEGIES:
Ongoing Priorities
Maintaining fiscal responsibility
2015 Focus Areas
Southeast Quadrant
REPORT NARRATIVE:
The City is in the process of evaluating the proposed pre-zoning, Urban Service Area (USA) expansion and annexation for several properties (see attached map) within the Southeast Quadrant (SEQ). The proposed actions include the following applications:
Urban Service Area Adjustment, USA-08-01, Annexation, ANX-08-01/Zoning Amendment, ZA-08-01: Tennant-Roman Catholic Bishop of San Jose: A request to extend the City's Urban Service Area boundary to allow annexation of the property into the City of Morgan Hill and to pre-zone the properties to Public Facilities/Planned Unit Development to allow the development of a private high school (South County Catholic High School) on a 38-acre site. The property, identified by Assessor Parcel Numbers 817-17-001, 817-17-009, 817-17-025 and 817-17-026 is located at the southeasterly corner of Barrett Avenue and Murphy Avenue ( Roman Catholic Bishop of San Jose, owner).
Urban Service Area Adjustment, USA-08-02, Annexation, ANX-08-02/Zoning Amendment, ZA-08-02: Fisher-Granum Partners: A request to extend the City's Urban Service Area boundary, to allow annexation of the property into the City of Morgan Hill and to pre-zone the properties to Sports/Recreation/Leisure (Sub-district B) to allow future development of sports, recreation and leisure uses on a 26-acre site. The property, identified by Assessor Parcel Numbers 817-14-004, 817-14-005, and 817-14-009, is located on the south side of Tennant Avenue, east of Highway 101 (Edward Acton, owner).
Urban Service Area Adjustment, USA-08-04, Annexation, ANX-08-03/ Zoning Amendment, ZA-14-12: Tennant-Puliafico: A request to extend the City's Urban Service Area boundary, to allow annexation of the property into the City of Morgan Hill and to pre-zone the properties to Sports/Recreation/Leisure (Sub-district A) to allow future development of sports, recreation and leisure uses on a 38-acre site. The project, identified by Assessor Parcel Numbers 817-16-002 through 817-16-005, is located along the south side of Tennant Avenue, east of Murphy Avenue (Paul Puliafico, Owner).
Urban Service Area Adjustment, USA-08-05, Annexation, ANX-08-04/ Zoning Amendment, ZA-08-04: Condit-Craiker: A request to extend the City's Urban Service Area boundary, to allow annexation of the properties into the City of Morgan Hill and to pre-zone to properties to Sports/Recreation/Leisure (Sub-district B) to allow future development of sports, recreation and leisure uses on a 4-acre site. The project, identified by Assessor Parcel Number 817-13-008, is located immediately south of the City of Morgan Hill Aquatics Center at the northeastern corner of Condit Road and Tennant Avenue (Patrick Scheufler, Owner).
Urban Service Area, USA-14-01/Annexation, ANX-14-01/Zoning Amendment, ZA-14-10: Tennant/SEQ: A request to extend the City's Urban Service Area boundary to provide for urban services, to allow annexation of the properties into the City of Morgan Hill, and to pre-zone the properties to Sports Recreation Leisure (Sub-district A or B) to allow future development of sports, recreation and leisure uses for an area approximately 65 acres. The project, identified by Assessor Parcel Numbers 817-13-011, 817-13-037, 817-14-011, 817-14-012, 817-14-014, 817-14-017, 817-14-019, 817-16-001, 817-16-014, 817-18-001 and 817-17-002, and is located in the Southeast Quadrant Area east of Highway 101, south of Barrett Avenue, and generally west of Hill Road and north of Maple Avenue (Multiple Owners).
The subject properties are located within the area designated for Sports / Recreation / Leisure or Public Facilities within the SEQ and are intended to support future development of recreational uses, commercial uses and a private high school within the City of Morgan Hill. If the City should determine to forward an application for an USA expansion to the Local Area Formation Commission (LAFCO), per LAFCO application requirements, the City must prepare a "Fiscal Impacts Report analyzing the fiscal impacts of the proposal on the affected local agencies, including the requesting agency, the County, special districts and any affected school districts." The proposed contract with BAE Urban Economics, Inc. would fund the preparation of such an analysis. The contract work would be funded by property owners within the SEQ area.
The proposed pre-zoning, USA expansion and annexation requests have been scheduled for consideration by the Planning Commission on June 23rd in anticipation of City Council consideration at the July 15th meeting. If the City Council decides to proceed with the requested USA expansion, an application will be submitted to LAFCO in August or September.
COMMUNITY ENGAGEMENT: Collaborate
As discussed previously, the City has conducted extensive efforts to engage with SEQ property owners, community stakeholders and other public agencies to develop a land use plan for the SEQ. For the proposed annexations, staff has met with affected property owners and contacted the property owners of adjacent properties to understand and address their concerns. Previously staff has met with other stakeholders on multiple occasions to discuss the project and made modifications to the project to incorporate their input.
ALTERNATIVE ACTIONS:
No Action - if the City Council decides not to approve the proposed contract, the City will contact alternative consultants to conduct the work. As a result of this delay, the City would not anticipate submittal of an application to LAFCO for the SEQ in 2015.
PRIOR CITY COUNCIL AND COMMISSION ACTIONS:
Components of the Project were considered by the Planning Commission at their regular meetings of May 13, 2014, May 27, 2014, June 10, 2014, June 24, 2014, August 12, 2014, August 26, 2014, September 9, 2014, September 23, 2014 and October 14, 2014. The Planning Commission also conducted a study session on the Project on February 25, 2014.
The City Council and Planning Commission has considered the project and provided direction to staff at the following meetings:
· February 21, 2007 City Council - direction to revise Residential Development Control System (RDCS) to support the preservation of open space and agriculture within the SEQ
· November 7, 2007 City Council - suggestion to use Residential Development Control System (RDCS) process as a funding source for agricultural mitigation.
· February 20, 2008 City Council - direction to continue with SEQ work program as proposed with an emphasis on development of sports/recreation/leisure uses within the SEQ and identification of a priority agricultural conservation area within the SEQ.
· April 22, 2008 Planning Commission - discussion of sports/recreation/leisure as a land use focus for the SEQ
· April 30, 2008 City Council - direction for City staff to work cooperatively with private property owners to develop a single project and to include an analysis of the long-term feasibility of agriculture within the project.
· October 7, 2009 City Council - acceptance of the project definition to include the proposed land use plan and agricultural preservation program.
· April 7, 2010 City Council - further definition of the proposed land use plan, including direction to continue to explore the proposed agricultural preservation program as a feasible strategy
· November 5, 2014 City Council - adoption of the Citywide Agricultural Lands Preservation Program and amendment of the General Plan to add Agricultural Lands and Sports / Recreation / Leisure (SRL) designations. The City Council advised that the Agricultural Lands Preservation Program should be considered a "living document" and that updates be considered on a regular basis.
· December 17, 2014 City Council - direction from City Council to schedule SEQ General Plan Amendments and other actions related to the Public Facilities and SRL uses for Council consideration.
· February 4, 2015 City Council - approval of General Plan Amendments to change the City's General Plan Land Use Diagram to SRL, Public Facilities and Residential Estate on various properties in the SEQ and to extend the Urban Growth Boundary to include those properties.
FISCAL AND RESOURCE IMPACT:
The proposed contract, for an amount not to exceed $29,925, would be fully funded, including administrative costs, by fees collected from property owners participating in the requested USA expansion and annexation.
CEQA (California Environmental Quality Act):
Project, Description of CEQA requirements
Environmental clearance for this Project is provided through an Environmental Impact Report (EIR) prepared in accordance with the California Environmental Quality Act (CEQA) to evaluate the potential environmental impacts associated with the adoption of a Citywide Agriculture Preservation Program and Southeast Quadrant Land Use Plan (State Clearinghouse No. 2010102010). This document is prepared in conformance with CEQA (California Public Resources Code, Section 21000, et seq.) and the CEQA Guidelines (California Code of Regulations, Title 14, Section 15000, et seq.), and City of Morgan Hill rules and regulations. The EIR was certified by the City Council on November 5, 2014. The potential impacts of the currently proposed actions were addressed within the EIR.
LINKS/ATTACHMENTS:
1. Resolution
2. Contract
3. SEQ Annexation Area Map