AGENDA _ November 9, 2010

COUNTY ADMINISTRATOR

SUSAN S. MURANISHI DONNA LINTON

COUNTY ADMINiSTRATOR ASSISTANT COUNTY ADMINISTRATOR

October 26, 2010

Honorable Board of Supervisors Administration Building Oakland, CA 94612

Dear Board Members:

SUBJECT: PROPERTY TAX EXCHANGE AGREEMENT WITH THE CITY OF LIVERMORE STAPLES RANCH PROPERTY ANNEXATION

RECOMMENDATION:

Conditional upon the City of Livermore's approval of this tax-sharing agreement, it is recommended that your Board adopt a resolution:

1) Authorizing the President to execute a property tax exchange agreement between the County and the City of Livermore with respect to the proposed annexation of the Staples Ranch properties; and

2) Authorize the Auditor-Controller to exchange the property tax revenues pursuant to that agreement.

DISCUSSION/SUMMARY:

Staples Ranch is a 124± acre vacant property owned by the Alameda County Surplus Property Authority (ACSPA), located just south of Interstate 580 and west of EI Charro Road. The property consists of two parcels, a 1.5 acre parcel currently located within the city limits of Pleasanton and a 122+ acre parcel located in unincorporated Alameda County, but within the sphere of influence of Pleasanton.

For the past five years, the ACSPA has worked with the City of Pleasanton to plan and entitle Staples Ranch to permit the sale and development of the property for a senior continuing care community on approximately 45 acres, an auto mall on approximately 37 acres, and a retail/office development on approximately 11 acres, as well as the extension of Stoneridge Drive to El Charro Road and a new community and neighborhood park. The City of Pleasanton recently approved an Environmental Impact Report (EIR), Specific Plan amendment, and development plans for Staples Ranch and is now initiating annexation proceedings to annex Staples Ranch, as well as adjoining roadway and flood control rights-of­way. Your Board approved a tax-sharing agreement with the City of Pleasanton on October 26, 20 10. Included in this annexation are portions of two parcels providing rights-of-way along El Charro Road that will be detached from the City of Livermore. The City of Livermore will annex a similar sized right-of­way parcel, also along EI Charro Road, of unincorporated land as part of the Staples Ranch transfer.

1221 OAK STREET' SUITE 555' OAKLAND, CALIFORNIA 94612· (5101272-6984

FAX (510) 272-3784

Honorable Board of Supervisors -2- October 26, 2010

Following annexation and subdivision of Staples Ranch, the ACSPA will be able to close on the property sales and the land will be developed.

The property tax-sharing agreement negotiated with the City of Livermore is based on the tax-sharing policy adopted by your Board on August 15, 1995, and is the model approved by your Board on August 24, 2000. Because all the properties involved in the transfers between the City of Livermore and both the County and the City of Pleasanton are rights-of-way along El Charro Road, there is no tax impact as a result of this action. The Livermore City Council is expected to approve the tax sharing agreement with the County at their November 8th meeting. Your Board is asked to approve the agreement conditioned upon the City of Livermore's approval and prior to our receipt of the signed copies in order to ensure that the Staples Ranch Annexation is placed on the January meeting agenda for the Local Agency Formation Commission (LAFCO). The agreement has been reviewed and approved by Counsel.

FINANCING:

There is no tax impact as a result of this action

Very truly yours,

Susan S. Muranishi County Administrator

SSM:RC:vIT Attaclunents V:\Rich C\Annexations\Staples Ranch\Slaples Ranch Annexation Board Letter -Livermore.doc

c: Mayor Jennifer Hosterman, City of Pleasanton Mayor Marshall Kamena, City of Livermore Nelson Fialho, City Manager, City of Pleasanton Linda Barton, City Manager, City of Livermore Mona Palacios, LAFCO Chris Bazar, Surplus Property Authority Sheldon Gilbert, Fire Department Jean Hofacket, Library

Approved as to Form RlCHARD WThfNIE, COUNTY COUNSEL

BY:.//::;:;; ~ -'

RESOLUTION NO. R- _

RESOLUTION OF THE BOARD OF SUPERVISORS OF THE COUNTY OF ALAMEDA, CALIFORNIA AUTHORIZING EXCH-ANGE OF PROPERTY TAX

REVENUE FOR THE STAPLES RANCHEROPERTY ANNEXATION

WHEREAS, Revenue and Taxation Code Section 99 provides, among other things, that no local agency jurisdictional change can be completed without the agencies affected first having agreed upon an exchange of property tax revenue; and

WHEREAS, on August 15, 1995, the Board of Supervisors adopted a policy on annexation and tax sharing agreements that provided in pa.J.i "that it is the policy of tillS Board that the County will negotiate all tax sharing agreements in good- faith, and consider compensation to the County for the full range of costs associated with providing Countywide facilities and services'2.;-and

WHEREAS, each specific annexation requires a resolution from the annexing city and the County agreeing to the exchange of property tax revenues as a requisite before the· annexation can be completed and filed with the State.

NOW, THEREFORE, BE IT RESOLVED, that the attached tax sharing agreement for the Staples Ranch proper:ti.es known collectively as the Staples Ranch i\nnexation, located in unincorporated Alameda :County will be effective as to each- property annexed :witKin the annexation area for the fiscal year following the filing with the State Board ofEqualization of the Certificate of Completion foi such property, provided the filing occurs prior to December 31 of .­the preceding year: and

BE IT FURTHER RESOLVED, that the-President of the Board-is authorized to sign. the tax-sharing agreement and that- the Auditor-Controller of the Coonty of Alameda shall be directed to cause -an exchange of proRerty tax revenues pursuant to the provisions of the property tax sharing agreement entered into between the -C01:L."1ty of Alameda and the City of Livermore pursuant to the foregoing policies, her-eto attached. ~ Exhibit A., Pages 1-3; and

BE IT FURTHER RESOLVED, that road right-of-way parcels APN 904-0013-002-01 and 904-0013-002-04 will be detached from the City of Livermore and annexed to the City of Pleasanton as part of the Staples Ranch Annexation. .

AGREEMENT BETWEEN THE COUNTY OF ALAMEDA AND THE CITY OF LIVERMORE REGARDING TRANSFER OF PROPERTY TAX

REVENUES IN CONNECTION WITH THE E! CHARRO ROAD DETACHMENT AND ANNEXATION

This Agreement is made pursuant to the provisions of Revenue and Taxation Code Section 99 and shall constitute the agreement for exchange of property tax revenues required b the Revenue and Taxation Code Section 99(b)(6). Furthermore, Revenue and Taxation Code section 99(b)(5) provides that if a jurisdictional change wiU alter the service area or service responsibility of a special district, the Board of Supervisors of the county in which th.e special district is located shalL.negotiate any exchange of property tax revenues on behalf'of the special district

The parties agree that for annexation of parcels as shown on Exhibit A, listing all applicable parcel numbers, to this agreement and incorporated herein, the Auditor­Controller of the County of Alameda is directed to cause an exchange of property tax revenue as follows:

A. The City is entitled to receive an allocation of computed property tax revenue equivalent to the share of property tax revenue it receives on a weighted average citywide. The weighted citywide average shall be computed annually as follows: multiply the city'-scurrent AS8 factor in each_tax rate area within the city by the current-secured -assessed valuation- in each tax rate area· to· arrive at a product for each tax rate area. The sum of those products is divided by the total secured assessed valuation within the city to arrive at a weighted citywide average. The secured tax roll is used here to establish the weighted citywide average. However, the factors resulting from application of the formula wiii apply to all tax rolls.

B. In the ·event that the CHy cw:.cently provides a service within its incorporated city­limits such as Fire or Library, and if that ser.iice is currently being- provided by· a County taxing agency or special district in the territory proposed for annexation, the -County- shciii' receive an allocation of computed property tax revenue equivalent to the share of property- tax revenue received by the County taxing agency or speciardistfict in the territory proposed for annexation. The County~s

receipt of that allocation shall not diminish the City's receipt of its allocation calcuIated under A ab.ove.

C. In the -event·that the City assumes full ·responsibility fora service l"Iot currently' bein9 provided by the City within-its incorporated city limitS:, but being pr.ovided by -a separate County taxing agency_or special district within the territory proposed for annexation, pursuant to Revenue and Taxation Code 99(b), the City shall receive, in addition to the allocation determined in A above, an allocation of computed property tax revenue equivalent to the share of property tax revenue received by the County taxing agency or special district in the territory proposed' for annexation.

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Alameda County - City of Livermore EI Charro Road Tax Sharing Agreement Page 2 of 2

D. The County shall receive an allocation of computed property tax revenue . equivalent to its current share of property tax revenue in the territory proposed for annexation plus the share or shares of property tax revenue allocated to it in section B above, less the share of computed property tax revenue allocated to the City in section A above, and in section C above as applicable,

E. In the event that this jurisdictional change .includes or results in the detachment of one or more parcels or portions thereof from the City and those parcels or portions thereof are transferred to the County or to another jurisdiction, the C~t'f

hereby waives any right, interest, or cla~Al to property tax on such parcels or portions thereof as identified-in Exhibit A. The parcels Of- portions thereof shall be transferred to the County or jurisdiction subject to the conditions of paragraphs A through 0 as specified in this agreement.

This exchang~ of property tax revenlJeS will be effective as to -each property annexed within the subject annexation area for the fiscal year following the filing with the State Board of Equalization of the Certificate of Completion for such property providing the filing occurs prior to December 31 of the preceding year,

Dated: CITY OF LIVERMORE

Linda Barton, City Manager

Attest: Approved as to Form:

Susan Neer, City Clerk Jud' nt City Attorney

Dated:----------- ­ COl:JNTY OF ALAMffiA

By:

Attest: Approved as to Form:

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"Exhibit A"

Staples Ranch Annexation Assessor's Parcel Numbers of Affected Parcels

946-1128-003-09 904-0001-006-03 Two Parcets - No APNs NoAPN Portions of946-1128-3-8; 946--1128-3-5: 946-1128-4-3 904-0013-002-01; 904-0013-002-04

S Ius Pro erty Authority of Alameda County Calmat Co. (El Charro Road) Alameda County 1Charro Road CaItrans (I-580) Alameda County Flood Control & Water Conservation District ACFC&WCD) City of Livermore (El Charro Road)

V:\Rich OAnnexations\Staples Ranch\Exhibit A list of parcels October 20l0.doc