HomeMy WebLinkAbout09/07/1999, 6 - RECONSIDERATION OF PRE-ANNEXATION AGREEMENTS CONCERNING MARGARITA AREA SCHOOL SITE REQUIREMENTS (ANNX 175-98 AND 208-98) jcouncil f■1/ �■ Mme: Dy.Sept. 7, 1999
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C IT Y OF S AN L U IS O B I S P O
O
FROM: Arnold B. Jonas, Community Development Director
Prepared By: Glen MattesonG,Tssociate Planner
SUBJECT: RECONSIDERATION OF PRE-ANNEXATION AGREEMENTS
CONCERNING MARGARITA AREA SCHOOL SITE REQUIREMENTS
(ANNX 175-98 AND 208-98)
CAO RECOMMENDATION
1. Approve, and authorize the Mayor to sign, revised pre-annexation agreements with the
landowners, reducing their obligations to provide a school site, in line with recent changes to
State law (grouped in Attachment 42).
2. Direct staff to revise the draft Margarita Area Specific Plan to reflect recommendation 41,
including revised credit for neighborhood park land dedication.
DISCUSSION
Plannine Background
The General Plan identifies the Margarita Area as the largest of the City's potential residential
expansion areas, encompassing about 410 acres and having a capacity of about 1,100 dwellings.
With full development over the next 15 years or so, it is expected to have about the number of
students that typically fill a public elementary school. A specific plan, which has more detail on
development standards and financing than the General Plan, must be adopted before
development starts. The draft specific plan shows a ten-acre elementary school site, with about
five acres of that area to be play fields used in conjunction with an adjacent neighborhood park.
The owners would get park-land credit for dedicating those five acres.
The City Council initiated annexation of the whole Margarita Area in 1993. In May 1998, the
City Council approved a draft specific plan for the area, to serve as the project description for an
environmental impact report (EIR). The EIR is being prepared in conjunction with work on the
neighboring Airport Area. In January and March 1999, the Council conceptually approved
annexation of three ownerships within the Margarita Area (King, DeBlauw, and
Cowan/Martinelli, as shown on the vicinity map, Attachment#1).
The school site is in the Damon-Garcia property, which would have about half of the Margarita
Area's dwellings. Aiming for equitable obligations among the owners for providing the school
site, the draft specific plan called for dedication by the Damon-Garcia's and, in effect, partial
reimbursement through fees collected from the other owners. The dedications and payments
would have occurred at the time of annexation. (These payments in lieu of dedicating land would
have been in addition to the fee paid to the School District based on square footage of a dwelling
when a building permit is obtained, which is a district-wide requirement_)
6-1
Council Agenda Report- Margarita Area School Site
Page 2
Pre-annexation Agreements
The City and landowners customarily have pre-annexation agreements that describe what
obligations each party will have when an annexation is completed. Staff had negotiated with the
owners, drafted, and recommended to Council such pre-annexation agreements, consistent with
the approved draft specific plan. Approval of the draft agreements was part of the Council's
January and March actions. During those actions, Council was alerted that there were questions
about how the agreements would be implemented, considering changes to State law resulting
from 1998 Senate Bill 50 and Proposition 1-A. The owners' representatives said they accepted
the agreements, with the understanding that their concerns were part of the hearing record.
However, when this report was prepared the owners had not signed the agreements, citing their
conflict with the new State law. Staff has not filed annexation materials with the Local Agency
Formation Commission, pending resolution of this issue.
City staff, School District staff, consulting attorneys, and the owners' representatives have
discussed several approaches. At one point, it appeared that the owners would accept the
previously identified dollar amount of payments, so long as dedication and payments would be
made when subdivision maps are recorded rather than at the time of annexation. Another owners'
proposal would in effect have been a no-interest loan, rather than a payment, to the School
District, to help acquire the school site. School district staff have proposed that the landowners
agree to formation of a community facilities district, a type of assessment district (letter,
Attachment #4; content duplicates letters sent to each owner). Owners have said they are
concerned that the total amount of assessments resulting from the School District's proposed
community facilities district along with a potential City assessment district could make housing
in the Margarita Area cost substantially more than housing in areas where only the routine school
impact fees are required. Owners have said that school obligations for the Margarita Area should
not exceed the school obligations in other annexation areas. (This applies mainly to the Orcutt
Area, since Irish Hills [DeVaul] has already been approved.)
The owners' current position is that they should have no obligation beyond the fees allowed by
State law and collected by the School District when building permits are issued, though they are
discussing financing options with School District staff. The revised agreements refer only to the
specific plan reserving a site for a school (part 5.13). The revised agreements would impose no
requirements beyond those in State law, leaving any additional agreements to be reached
between the owners and the School District.
New State Law
There has long been a general legal standard that site dedications or payments required of
developments must have a clear public benefit and be in proportion to the demands the
development will place on the affected public service. The draft specific plan and previous
agreements passed this test. However, SB 50 appears to say that the City and the School District
can require no more from a developer than paying a State-set, maximum, school-impact fee when
a building permit is obtained. (Certain higher fees may apply in future years, depending on other
6-2
Council Agenda Report- Margarita Area School Site
Page 3
actions taken by the School District.) The new law is tied to additional funding for schools which
is to be provided through statewide bond proceeds. SB 50 says a development application, or a
City legislative act such as a General Plan or zoning amendment to enable a development, cannot
be denied on the basis of inadequate school facilities. It also says that inadequate school facilities
are not a significant environmental impact, because they are deemed fully mitigated by payment
of the allowed building-permit fees.
City and School District Roles
Public elementary and secondary schools in the San Luis Obispo area are provided by the San
Luis Coastal Unified School District, which is independent of the City. While the School District
can obtain and dispose of school sites without following the City's General Plan or specific
plans, the two agencies have worked together to prepare information on enrollment trends and to
identify potential new school sites and uses for former school sites. In preparing the Margarita
Area Specific Plan, the City has tried to assure that there will be a site with a suitable land use
designation, area, and topography, and with acceptable relationships to streets, parks, other land
uses, and airport compatibility zones.
The School District builds and operates schools, and provides a student bussing program. The
District decides elementary school attendance areas, and the schedule of expanding existing
schools and building new ones, subject to State requirements and its own financial limitations.
The City and the School District can work together on obtaining a school site through adoption
of plans and establishment of financing mechanisms. Staff anticipates revising the draft specific
plan to assure that a suitable school site will be reserved for that use for a sufficient time.
LAFCo Role
State law empowers the Local Agency Formation Commission (LAFCo), a countywide body, to
review boundary changes of cities. LAFCo approval is required for the annexation to take effect.
By previous actions, Council has recommended that LAFCo approve the requested annexations.
The required LAFCo hearing has not been scheduled, since the necessary materials have not been
filed with LAFCo. The affect of SB 50 on LAFCo is not clear.
Data Summary
Owners and applicants: Sierra Gardens of S.L.O. and Kitman-1 (Richard DeBlauw and others);
John E. King and Carol D. King; Craig Cowan Revocable Trust; Serafino
J. Martinelli, Trustee
Representatives: John French; David Watson
City's General Plan: Open Space (on the hills and creeks); Residential Neighborhood
County's S.L.O. Area Plan: Agriculture (on the hills); Residential Single Family
City Zoning: currently outside City zoning jurisdiction; Conservation/Open Space upon
annexation; open space and residential zones following specific plan adoption
6-3
Council Agenda Report- Margarita Area School Site
Page 4
Environmental determination: Modifying the agreement is not subject to environmental review.
An environmental impact report on the Specific Plan must be approved by the
City Council before development begins. The areawide and individual
annexations have been found to be adequately covered by the 1994 EIR for the
Land Use and Circulation Elements Update.
Action Deadline: Annexation, specific plan adoption, and some implementing actions such as
the agreements are not subject to State Permit Streamlining Act time limits.
ALTERNATIVES
A. Council may direct staff to continue the annexation process without having pre-annexation
agreements with the owners. In this case, citywide requirements and whatever provisions are
adopted as part of the specific plan would apply as the area is subdivided and developed, to
the extent allowed by law. There would be no recorded document stating that open space will
be dedicated upon annexation.
B. Council may continue action and direct staff to work further with the owners and the School
District concerning provision of a school site.
FISCAL IMPACT
The recommended action will have no fiscal impact for the City. While the school site and City
park land have functional links and similar equity considerations, the park-land dedication and
fee requirements can be set separately from SB 50 limits. The draft specific plan appendix which
proposed an approach for park-land dedication and fees will need to be revised to reflect the
school site not being dedicated as well as the City's purchase of the sports fields area in the
Damon-Garcia property.
Attachments
#1 Vicinity map "Margarita Area Ownerships"
#2 Revised draft pre-annexation agreements
#3 Pages from pre-annexation agreements showing changes from previous version
#4 School District letter
Council Reading File
Background material concerning 1998 SB 50 and Proposition 1-A
masp/schl-car.doc
6-4
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6-5
Attachment #2
RECORDING REQUESTED BY AND
WHEN RECORDED RETURN TO:
City of San Luis Obispo
City Clerk's Office
990 Palm Street
San Luis Obispo, CA 93401-3249
APN: 076-341-004
PRE-ANNEXATION AGREEMENT BY AND BETWEEN
THE CITY OF SAN LUIS OBISPO AND
SERAFINO J. MARTINELLI, TRUSTEE
FOR PART OF THE MARGARITA AREA
This annexation agreement is made and entered into this day of . 1999,
by and between the City of San Luis Obispo, a chartered municipal corporation, (hereinafter
referred to as "CITY") whose address is 990 Palm Street, San Luis Obispo, California 93401,
and Serafino J. Martinelli, Trustee, PO Box 3452, San Luis Obispo, California, 93403
(hereinafter referred to as "OWNER"), pursuant to the authority of the City Charter, and
Section 56000 and following sections of the California Government Code. CITY and OWNER
shall hereinafter be referred to collectively as "PARTIES."
RECITALS
WHEREAS, Serafino J. Martinelli, Trustee, is the owner in fee of certain real property in the
County of San Luis Obispo, commonly known as the west part of the Margarita Area and
generally indicated on the attached Exhibit A, Vicinity Map (Assessor's Parcel Number 076-
341-040), and which is fully described in the attached Exhibit B, and referred to herein as the
"subject property;" and
WHEREAS, the subject property is proposed for annexation to the City of San Luis Obispo
(City File No. 208-98); and
WHEREAS, the subject property is within the area covered by the Margarita Area Specific
Plan, which CITY is preparing and anticipates adopting within six to nine months; and
WHEREAS, OWNER desires to be annexed to the City in advance of completion of the
Margarita Area Specific Plan, and in consideration of such early annexation have agreed to
enter into this Pre-annexation Agreement; and
6-6
Pre-annexation Agreement(Margarita/Martinelli)
Page 2 of 6
WHEREAS, to provide for the City's orderly growth and development, consistent with the
General Plan, PARTIES anticipate that the subject property will be annexed to the City
pursuant to terms and procedures of California Government Code 56000 and following
sections;
NOW THEREFORE, in consideration of the mutual promises, covenants and agreements
stated herein, PARTIES agree as follows:
1. URBAN SERVICES. Upon annexation, the property shall be entitled to the full range of
City services, including but not limited to water and sewer services, police and fire protection,
and general government services, some of which are described below in more detail.
Water Service. CITY agrees, upon request of OWNER, to provide water service to the
subject property, as available, for fire-fighting and domestic purposes, subject to the same
laws, rules, regulations, and fees applicable to other new users in the City under similar
circumstances, including but not limited to retrofit requirements. Use of any existing on-site
groundwater wells for potable or non-potable use(s) may continue, provided they meet County
Health Department standards. Use of groundwater for new development will comply with
applicable City policies. Non-potable water may be used for landscape irrigation. If well(s) fail
or are abandoned, OWNER shall comply with applicable State and County regulations
regarding well abandonment.
Sewer Service. City agrees, upon request of OWNER, to provide sanitary sewer service, as
available, to the subject property, subject to the same laws, rules, regulations, and fees
applicable to other new users in the City under similar circumstances.
Fire Protection. City agrees, upon request of OWNER, to provide fire protection service, as
available, to the subject property, subject to the same laws, rules, regulations, and fees
applicable to other new users in the City under similar circumstances.
2. COMPLIANCE WITH CITY STANDARDS. Once annexed, the property will be subject
to the same rules, regulations, laws, and fees that would be applied to other properties in the
City under similar circumstances including, but not limited to, Subdivision Regulations,
Zoning Regulations, Building Code, Fire Code, environmental regulations (California
Environmental Quality Act), fees, taxes (including Business Tax and Utility Users tax) and
other provisions of the Municipal Code and State laws.
6-7
Pre-annexation Agreement(Margarita/Martinelli)
Page 3 of 6
3. AGREEMENT FOR WELL WATER AND CITY SEWER. Once annexed, if OWNER
proposes to use a private well for domestic water supply and a CITY sewer connection for
wastewater disposal, for a commercial activity, OWNER shall enter into an agreement with
CITY concerning metering and billing for sewer service, including installation of a meter in
compliance with CITY standards.
4. PROPERTY IMPROVEMENTS. At the time of future development or redevelopment, it
shall be the responsibility of the OWNER to install or pay for improvements and pay fees
which may be required by permit, law, rule, or regulation at that time, or which are required
by the anticipated Margarita Area Specific Plan.
5. SPECIFIC PLAN AND INFRASTRUCTURE FEES. These fees are the anticipated, net
allocated costs to CITY of specific plan preparation, environmental review, and public
facilities site acquisition and development, excluding facilities expected to be constructed by
OWNER. The adopted specific plan will identify the amount and time of payment for these
fees. OWNER agrees to pay these fees in the amount and manner provided. (The specific plan
may call for establishment of an assessment district or other benefit district as a method of
financing these costs, instead of or in addition to impact fees collected at the time of
annexation, subdivision, or development; see also part 7 below.)
A. Public Park Dedication and Improvement. Upon obtaining construction permits,
OWNER shall pay to CITY $5,453.00 per single-family dwelling and $4,298.00 per
multifamily dwelling to be used by CITY for acquisition or development, or both, of park land
within the Margarita Area. These amounts shall be adjusted annually by increases in the U.S.
Consumer Price Index, All Urban Consumers, from March 1998 until construction permits are
issued. If the number or density of dwellings differs in the adopted specific plan, OWNER
shall pay to CITY or CITY shall refund to OWNER the appropriate amount based on
$5,453.00 per potential dwelling in the low-density land-use category and $4,298.00 per
potential dwelling in other land-use categories. These amounts represent $2,999 in land costs
and $2,454 in improvement costs per single-family dwelling, and $2,364 in land costs and
$1,934 in improvement costs per multifamily dwelling. If OWNER dedicates or improves
public park land, or does both, or if OWNER provides private recreational facilities that serve
public park functions, CITY may grant OWNER a credit toward the identified park fees. The
amount of any such credit shall be proportional to the park or recreational facilities provided
by OWNER compared with the total park obligation of OWNER, according to CITY policies
and based on the population expected to reside in OWNER'S development.
6-8
Pre-annexation Agreement(Margarita/Martinelli)
Page 4 of 6
B. Neighborhood Elementary School Site. The draft specific plan is proposed to reserve a
site for development of a public elementary school.
6. ZONING IN COMPLIANCE WITH SPECIFIC PLAN. PARTIES anticipate that the
subject property will be zoned Conservation/Open Space upon annexation. Upon adoption of
the Margarita Area Specific Plan, CITY shall zone the subject property in conformance with
the specific plan. No additional application fee shall be required of the applicant for that
rezoning.
7. POTENTIAL ASSESSMENT DISTRICT. Within the next six to nine months, the City
expects to adopt a finalized specific plan and infrastructure improvement fees, form an
assessment district or other funding mechanism, or implement some combination of funding
mechanisms, to finance certain areawide public improvement costs. OWNER and OWNER'S
successors agree to support the formation of such a district or other funding mechanisms. Prior
to formation of any such district, OWNER shall have the right to comment on the amount and
method of cost assessment and to negotiate with CITY concerning an amendment of this
agreement. Further, OWNER shall have the option of completing identified improvements,
subject to approval of plans and inspection of work by CITY and with reimbursement by other
benefiting properties if appropriate, rather than funding such improvements through an
assessment district.
8. TERM OF AGREEMENT. The term of this agreement shall begin upon the effective
date of the annexation. The agreement shall remain in effect until modified or terminated by
mutual consent of the PARTIES. If the annexation does not become effective for any reason,
this agreement shall terminate and have no force and effect, as if it had never been entered into
by the PARTIES.
9. SUCCESSORS, HEIRS, AND ASSIGNS. This agreement shall be recorded with the
County Recorder and shall bind and inure to the benefit of the successors, heirs, assigns, and
personal representatives of the PARTIES.
10. AMENDMENTS, TIME EXTENSION, OR CANCELLATION. This. agreement may
be amended, extended, or canceled at any time by mutual consent of the PARTIES or their
successors in interest.
6-9
Pre-annexation Agreement(Margarita/Martinelli)
Page 5 of 6
IN WITNESS WHEREOF, this agreement is executed on the date above stated at San Luis
Obispo, California.
:l+,;, SIC_N:s'£' A:<i_:k_�' ,?t ST BE \'<;'I.�R:Z E 1's.
dell nameii sic'11l?12 :?,� iP^,!Sit. . husi;le�� partner, O:' oii:cer of ii Corporation.
- rt
OWNERS
BY: BY:
Serafino J. Martinelli Trustee
BY: BY:
6-10
Pre-annexation Agreemem(Margarita(Martinelli)
Page 6 of 6
CITY OF SAN LUIS OBISPO, A Chartered Municipal Corporation
APPROVED AS TO FORM:
ty to y Jo nsen
BY:
Mayor Allen Settle
State of California }
County of San Luis Obispo }
On 1999, before me, Lee Price,. .Notary Public, personally
appeared.Allen Settle, personally known to me to.be the person whose name is subscribed to the
within instrument.and acknowledged to me that he executed.the same in his capacity., and that by
his signature on the instrument the person or the entity upon.behalf of which the person acted,
executed the instrument.
Witness-my hand and official seal.
Notary Public
Capacityclaimed by sign
( ) individual(s) O corporation O partnership O attorney-in-fact ( X ) political agency
6-11.
CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT No.5907
State of (� f-D�N
County of � L,[,c
On4 077 ' beforeme
DATE NAM .TITLE OF OFFICER E.G..-JANE DOE,NOTAR ELIC'
personally appeared ne Int nD V . Mal -4t n2l l t
NAME(S)OF SIGNER(S)
C/personafly known to me - OR - ❑ proved to me on the basis of satisfactory evidence
to be the person(s) whose name(s) is/are
subscribed to the within instrument and ac-
rNA"u`Nknowledged to me that he/she/they executed
commission t 1727385
z NotayPublic-califamia the same in his/her/their authorized
Son Luis obspocounty r capacity(ies), and that by his/her/their
My Comm.Expires Ju12.20a1
signature(s) on the instrument the person(s),
or the entity upon behalf of which the
person(s) acted, executed the instrument.
WITNESS my hand d i eal.
OF NOT
OPTIONAL
Though the data below is not required by law, it may prove valuable to persons relying on the document and could prevent
fraudulent reattachment of this form.
CAPACITY CLAIMED BY SIGNER DESCRIPTION OF ATTACHED DOCUMENT
❑ INDIVIDUAL
❑ CORPORATE OFFICER
TITLE OR TYPE OF DOCUMENT
TmE(S)
❑ PARTNER(S) ❑ LIMITED
❑ GENERAL
❑ ATTORNEY-IN-FACT NUMBER OF PAGES
❑ TRUSTEE(S)
❑ GUARDIAWCONSERVATOR
❑ OTHER:
DATE OF DOCUMENT
SIGNER IS REPRESENTING:
NAME OF PERSON(S)OR ENTTY(IES)
SIGNER(S)OTHER THAN NAMED ABOVE
01993 NATIONAL NOTARY ASSOCIATION-8236 Remmet Ave.,P.O.Box 7184-Canoga'1 11.9-7184
r
RECORDING REQUESTED BY AND
WHEN RECORDED RETURN TO:
City of San Luis Obispo
City Clerk's Office
990 Palm Street
San Luis Obispo, CA 93401-3249
APN: 076-341-010
076-341-011
PRE-ANNEXATION AGREEMENT BY AND BETWEEN
THE CITY OF SAN LUIS OBISPO AND
SIERRA GARDENS OF SAN LUIS OBISPO, LTD, ET. AL.
FOR PART OF THE MARGARITA AREA
This annexation agreement is made and entered into this day of 1999, by
and between the City of San Luis Obispo, a chartered municipal corporation, (hereinafter referred
to as "CITY") whose address is 990 Palm Street, San Luis Obispo, California 93401; and Sierra
Gardens of San Luis Obispo, Ltd., and Kitman-1, A California Limited Partnership, whose address
is 744 Alta Vista Way, Arroyo Grande, California, 93420, and any others identified on the
signature page of this agreement (hereinafter referred to as "OWNERS"), pursuant to the authority
of the City Charter, and Section 56000 and following sections of the California Government Code.
CITY and OWNERS shall hereinafter be referred to collectively as "PARTIES."
RECITALS
WHEREAS, Sierra Gardens of San Luis Obispo, Ltd., et. al., are the owners in fee of certain
real property in the County of San Luis Obispo, commonly known as the northwest part of the
Margarita Area and generally indicated on the attached Exhibit A, Vicinity Map (Assessor's
Parcel Numbers 076-341-010 and 076-341-011), and which is fully described in the attached
Exhibit B, and referred to herein as the "subject property;" and
WHEREAS, the subject property is proposed for annexation to the City of San Luis Obispo
(City File No. 175-98); and
WHEREAS, the subject property is within the area covered by the Margarita Area Specific
Plan, which CITY is preparing and anticipates adopting within six to nine months; and
WHEREAS, OWNERS desire to be annexed to the City in advance of completion of the
Margarita Area Specific Plan, and in consideration of such early annexation have agreed to
enter into this Pre-annexation Agreement; and
6-13
.,
Pre-annexation Agreement(Margarita/Sierra Gardens)
Page 2 of 6
WHEREAS, to provide for the City's orderly growth and development, consistent with the
General Plan, PARTIES anticipate that the subject property will be annexed to the City pursuant
to terms and procedures of California Government Code 56000 and following sections;
NOW THEREFORE, in consideration of the mutual promises, covenants and agreements
stated herein, PARTIES agree as follows:
1. URBAN SERVICES. Upon annexation, the property shall be entitled to the full range of
City services, including but not limited to water and sewer services, police and fire protection,
and general government services, some of which are described below in more detail.
Water Service. CITY agrees, upon request of OWNERS, to provide water service to the
subject property, as available, for fire-fighting and domestic purposes, subject to the same
laws, rules, regulations, and fees applicable to other new users in the City under similar
circumstances, including but not limited to retrofit requirements. Use of any existing on-site
groundwater wells for potable or non-potable use(s) may continue, provided they meet County
Health Department standards. Use of groundwater for new development will comply with
applicable City policies. Non-potable water may be used for landscape irrigation. If well(s) fail
or are abandoned, OWNERS shall comply with applicable State and County regulations
regarding well abandonment.
Sewer Service. City agrees, upon request of OWNERS, to provide sanitary sewer service, as
available, to the subject property, subject to the same laws, rules, regulations, and fees
applicable to other new users in the City under similar circumstances.
Fire Protection. City agrees, upon request of OWNERS, to provide fire protection service, as
available, to the subject property, subject to the same laws, rules, regulations, and fees
applicable to other new users in the City under similar circumstances.
2. COMPLIANCE WITH CITY STANDARDS. Once annexed, the property will be subject
to the same rules, regulations, laws, and fees that would be applied to other properties in the
City under similar circumstances including, but not limited to, Subdivision Regulations,
Zoning Regulations, Building Code, Fire Code, environmental regulations (California
Environmental Quality Act), fees, taxes (including Business Tax and Utility Users tax) and
other provisions of the Municipal Code and State laws.
6-14
Pre-annexation Agreement(Margarita/Sierra Gardens)
Page 3 of 6
3. AGREEMENT FOR WELL WATER AND CITY SEWER. Once annexed, if
OWNERS propose to use a private well for domestic water supply and a CITY sewer
connection for wastewater disposal, for a commercial activity, OWNERS shall enter into an
agreement with CITY concerning metering and billing for sewer service, including installation
of a meter in compliance with CITY standards.
4. PROPERTY IMPROVEMENTS. At the time of future development or redevelopment, it
shall be the responsibility of the OWNERS to install or pay for improvements and pay fees
which may be required by permit, law, rule, or regulation at that time, or which are required
by the anticipated Margarita Area Specific Plan.
5. SPECIFIC PLAN AND INFRASTRUCTURE FEES. These fees are the anticipated, net
allocated costs to CITY of specific plan preparation, environmental review, and public
facilities site acquisition and development, excluding facilities expected to be constructed by
OWNERS. The adopted specific plan will identify the amount and time of payment for these
fees. OWNERS agree to pay these fees in the amount and manner provided. (The specific plan
may call for establishment of an assessment district or other benefit district as a method of
financing these costs, instead of or in addition to impact fees collected at the time of
annexation, subdivision, or development; see also part 8 below.)
A. Public Park Dedication and Improvement. Upon obtaining construction permits,
OWNERS shall pay to CITY $5,453.00 per single-family dwelling and $4,298.00 per
multifamily dwelling to be used by CITY for acquisition or development, or both, of park land
within the Margarita Area. These amounts shall be adjusted annually by increases in the U.S.
Consumer Price Index, All Urban Consumers, from March 1998 until construction permits are
issued. If the number or density of dwellings differs in the adopted specific plan, OWNERS
shall pay to CITY or CITY shall refund to OWNERS the appropriate amount based on
$5,453.00 per potential dwelling in the low-density land-use category and $4,298.00 per
potential dwelling in other land-use categories. These amounts represent $2,999 in land costs
and $2,454 in improvement costs per single-family dwelling, and $2,364 in land costs and
$1,934 in improvement costs per multifamily dwelling. If OWNERS dedicate or improve
public park land, or do both, or if OWNERS provide private recreational facilities that serve
public park functions, CITY may grant OWNERS a credit toward the identified park fees. The
amount of any such credit shall be proportional to the park or recreational facilities provided
by OWNERS compared with the total park obligation of OWNERS, according to CITY
policies and based on the population expected to reside in OWNERS' development.
6-15
Pre-annexation Agreement(Margarita/Sierra Gardens)
Paae 4 of 6
B. Neighborhood Elementary School Site. The specific plan is proposed to reserve a site for
development of a public elementary school.
6. LAND DEDICATION: Upon recordation of final tract map(s), OWNERS shall dedicate to
CITY creek corridors as delineated in the adopted Margarita Area Specific Plan and as further
defined in approved tentative and final subdivision maps.
7. ZONING IN COMPLIANCE WITH SPECIFIC PLAN. PARTIES anticipate that the
subject property will be zoned Conservation/Open Space upon annexation. Upon adoption of
the Margarita Area Specific Plan, CITY shall zone the subject property in conformance with
the specific plan. No additional application fee shall be required of the applicant for that
rezoning.
S. POTENTIAL ASSESSMENT DISTRICT. Within the next six to nine months, the City
expects to adopt a finalized specific plan and infrastructure improvement fees, form an
assessment district or other funding mechanism, or implement some combination of funding.
mechanisms, to finance certain areawide public improvement costs. OWNERS and their
successors agree to support the formation of such a district or other,funding mechanisms. Prior
to formation of any such district, OWNERS shall have the right to comment on the amount and
method of cost assessment and to negotiate with CITY concerning an amendment of this
agreement. Further, OWNERS shall have the option of completing identified improvements,
subject to approval of plans and inspection of work by CITY and with reimbursement by other
benefiting properties if appropriate, rather than funding such improvements through an
assessment district.
9. TERM OF AGREEMENT. The term of this agreement shall begin upon the effective
date of the annexation. The agreement shall remain in effect until modified or terminated by
mutual consent of the PARTIES. If the annexation does not become effective for any reason,
this agreement shall terminate and have no force and effect, as if it had never been entered into
by the PARTIES.
10. SUCCESSORS, HEIRS, AND ASSIGNS. This agreement shall be recorded with the
County Recorder and shall bind and inure to the benefit of the successors, heirs., assigns, and
personal representatives of the PARTIES.
6-16
Pre-annexation Agreement(Margarita/Sierra Gardens)
Page 5 of 6
11. AMENDMENTS, TIlVIE EXTENSION, OR CANCELLATION. This agreement may
be amended, extended, or canceled at any time by mutual consent of the PARTIES or their
successors in interest.
IN WITNESS WHEREOF, this agreement is executed on the date above stated at San Luis
Obispo, California.
Li. S1i.T TL R: > "sL:S lit \i�r.Ai2tZk D.
Inlciude titre after zvn, T.' noraC' lI s!.?P.Enu as a truslet. iUusi :_esti )' z-tcer. Or Ufl"!Cer Oi a C'J:
OWNERS
BY: /iy%IIGI�✓ / ! �`� BY:
terra Gardens ofKitman-1 A California
Evac liCal?C;: L)t.:: TU _ik�:
San Luis Obispo, Ltd. Limited Partnership,
Richard DeBlauw, Robert Kitamura,
BY:
General Partner BY: General Partner
6-17
Pre-annexation Agreement(Margarita/Sierra Gardens) s
Page 6 of 6
CITY OF SAN LUIS OBISPO, A Chartered Municipal Corporation
APPROVED AS TO FORM:
t_ .oy Je org _sen
BY:
Mayor Allen Settle
State of California }
County of San Luis Obispo }
On 1999, before me, Lee :Price, Notary Public; personally
appeared Allen Settle, personally known to me to be the person whose name is subscribed to the
within instrument and acknowledged to me that he executed the same in his capacity, and that by
his signature on the instrument the person or the entity upon behalf of which the person acted.,
executed the instrument.
Witness my hand and official seal.
Notary Public
Capacity-claimed.by signer(s):..
( ) individual(s) ( ) corporation ( ) partnership ( ) attorney-in-fact ( X ) political agency
6=18
ALL-PURPOSE ACKNOWLEDGMENT
�•memomome meme®ems®e®o®o®•®o®ors®e ®s�
State of California •
I County of SArI 1_C; l S O6.1 S PCS } SS. I
I On 61 /2-6
% before me, D LOWE
• (DATE) ) •
I personally appeared 17dw IX, I
SIGNER(
' l personally known to me - OR- ❑ proved to me on the basis of satisfactory I
evidence to be the person(s) whose name(s) •
Iis/are subscribed to the within instrument and I
• acknowledged to me that helshe/they executed •
' the same in his/her/their authorized I
capacity(ies), and that by his/her/their •
' signature(s) on the instrument the person(s), I
e BONNIE or the entity upon behalf of which the
I N 65
A NOComm.01176542 TARY PUBLIC N person(s) acted, executed the instrument.
• San Luis Obispo County .a •
' My Comm. Expires March 16,2002 I
WITNESS my hand and official seal.
iNOTARY'S SIGNATURE i
OPTIONAL INFORMATION °
' The information below is not required by law. However, it could prevent fraudulent attachment of this aclrnowl- I
• edgment to an unauthorized document. •
fCAPACITY CLAIMED BY SIGNER (PRINCIPAL) DESCRIPTION OF ATTACHED DOCUMENT '
' ❑ INDIVIDUAL '
❑ CORPORATE OFFICER
'° TITLE OR TYPE OF DOCUMENT o
TrrLE(S) 1
O
f ❑ PARTNER(S) NUMBER OF PAGES I
❑ ATTORNEY-IN-FACT o
I ❑ TRUSTEE(S) '
° ❑ GUARDIAN/CONSERVATOR DATE OF DOCUMENT •
I ❑ OTHER: '
o •
' OTHER '
• m e
IRIGHT THUMBPRINT I
• SIGNER IS REPRESENTING: OF
2.
NAME OF PERSON(S)OR ENTrrY(IES) E °
1 SIGNER r '
a
e F •
�o®o®•®o®omorome®o®•tore r•®e®ore®o 01
APA 5/97 VALLEY-SIERRA.900-362-3369
RECORDING REQUESTED BY AND
WHEN RECORDED RETURN TO:
City of San Luis Obispo
City Clerk's Office
990 Palm Street
San Luis Obispo, CA 93401-3249
APN: 076-331-015
PRE-ANNEXATION AGREEMENT BY AND BETWEEN
THE CITY OF SAN LUIS OBISPO AND
JOHN E. KING & CAROLED. KING
FOR PART OF THE MARGARITA AREA
This annexation agreement is made and entered into this day of 1999,
by and between the City of San Luis Obispo, a chartered municipal corporation, (hereinafter
referred to as "CITY") whose address is 990 Palm Street, San Luis Obispo, California 93401;
and John E. King and Carole D. King, whose address is 290 Pismo Street, San Luis Obispo,
California 93401 (hereinafter referred to as "OWNERS"), pursuant to the authority of the City
Charter, and Section 56000 and following sections of the California Government Code. CITY
and OWNERS shall hereinafter be referred to collectively as "PARTIES."
RECITALS
WHEREAS, John E. King and Carole D. King are the owners in fee of certain real property in
the County of San Luis Obispo, commonly known as the northwest part of the Margarita Area
and generally indicated on the attached Exhibit A, Vicinity Map (Assessor's Parcel Number
076-331-015), and which is fully described in the attached Exhibit B, and referred to herein as
the "subject property;" and
WHEREAS, the subject property is proposed for annexation to the City of San Luis Obispo
(City File No. 175-98); and
WHEREAS, the subject property is within the area covered by the Margarita Area Specific
Plan, which CITY is preparing and anticipates adopting within six to nine months; and
WHEREAS, OWNERS desire to be annexed to the City in advance of completion of the
Margarita Area Specific Plan, and in consideration of such early annexation have agreed to
enter into this Pre-annexation Agreement; and
6-20
Pre_annexation Agreement(Margarita/King)
Page , of 6
WHEREAS, to provide -for the City's orderly growth and development, consistent with the
General Plan, PARTIES anticipate that the subject property will be annexed to the City
pursuant to terms and procedures of California Government Code 56000 and following
sections,
NOW THEREFORE, in consideration of the mutual promises, covenants and agreements
stated herein, PARTIES agree as follows:
1. URBAN SERVICES. Upon annexation, the property shall be entitled to the full range of
City services, including but not limited to water and sewer.services, police and fire protection,
and general government services, some of which are described below in more detail.
Water Service..CITY agrees, upon request of OWNERS, to provide water service to the
subject property, as available, for fire-fighting and domestic purposes, subject to the same
laws, rules, regulations, and fees applicable to other new users in the City under similar
circumstances, including but not limited to retrofit requirements. Use of any existing on-site
groundwater wells for potable or non-potable use(s) may continue, provided they meet County
Health Department standards. Use of groundwater for new development will comply with
applicable City policies. Non-potable water may be used for landscape irrigation. If well(s) fail
or are abandoned, OWNERS shall comply with applicable State and County regulations
regarding well abandonment.
Sewer Service. City agrees, upon request of OWNERS, to provide sanitary sewer service, as
available, to the subject property, subject to the same laws, rules, regulations, and fees
applicable to other new users in the City under similar circumstances.
Fire Protection. City agrees, upon request of OWNERS, to provide fire protection service, as
available, to the subject property, subject to the same laws, rules, regulations., and fees
applicable to other new users in the City under similar circumstances.
2. COMPLIANCE WITH CITY STANDARDS. Once annexed., the property will be subject
to the same rules, regulations, laws, and fees that would be applied to other properties in the
City under similar circumstances including, but not limited .to, Subdivision Regulations;
Zoning Regulations, Building Code, Fire Code, environmental regulations (California
Environmental Quality Act), fees, taxes (including Business Tax and Utility Users tax) and
other provisions of the Municipal Code and State laws.
6-21
Pre-annexation Agreement(Margarita/King)
Page 3 of 6
3. AGREEMENT FOR WELL WATER AND CITY SEWER. Once annexed, if
OWNERS propose to use a private well for domestic water supply and a CITY sewer
connection for wastewater disposal, for a commercial activity, OWNERS shall enter into an
agreement with CITY concerning metering and billing for sewer service, including installation
of a meter in compliance with CITY standards.
4. PROPERTY IMPROVEMENTS. At the time of future development or redevelopment, it
shall be the responsibility of the OWNERS to install or pay for improvements and pay fees
which may be required by permit, law, rule, or regulation at that time, or which are required
by the anticipated Margarita Area Specific Plan.
5. SPECIFIC PLAN AND INFRASTRUCTURE FEES. These fees are the anticipated, net
allocated costs to CITY of specific plan preparation, environmental review, and public
facilities site acquisition and development, excluding facilities expected to be constructed by
OWNERS. The adopted specific plan will identify the amount and time of payment for these
fees. OWNERS agree to pay these fees in the amount and manner provided. (The specific plan
may call for establishment of an assessment district or other benefit district as a method of
financing these costs, instead of or in addition to impact fees collected at the time of
annexation, subdivision, or development; see also part 8 below.)
A. Public Park Dedication and Improvement. Upon obtaining construction permits,
OWNERS shall pay to CITY $5,453.00 per single-family dwelling and $4,298.00 per
multifamily dwelling to be used by CITY for acquisition or development, or both, of park land
within the Margarita Area. These amounts shall be adjusted annually by increases in the U.S.
Consumer Price Index, All Urban Consumers, from March 1998 until construction permits are
issued. If the number or density of dwellings differs in the adopted specific plan, OWNERS
shall pay to CITY or CITY shall refund to OWNERS the appropriate amount based on
$5,453.00 per potential dwelling in the low-density land-use category and $4,298.00 per
potential dwelling in other land-use categories. These amounts represent $2,999 in land costs
and $2,454 in improvement costs per single-family dwelling, and $2,364 in land costs and
$1,934 in improvement costs per multifamily dwelling. If OWNERS dedicate or improve
public park land, or do both, or if OWNERS provide private recreational facilities that serve
public park functions, CITY may grant OWNERS a credit toward the identified park fees. The
amount of any such credit shall be proportional to the park or recreational facilities provided
by OWNERS compared with the total park obligation of OWNERS, according to CITY
policies and based on the population expected to reside in OWNERS' development.
6-22
Pre-annexation Agreement(Margarita/King)
Page 4 of 6
B. Neighborhood Elementary School Site. The specific plan is proposed to reserve a site for
development of a public elementary school.
6. LAND DEDICATION. Upon annexation, OWNERS shall dedicate to CITY the land
identified in the April 1998 Draft Margarita Area Specific Plan as "hills open space."
PARTIES anticipate that minor adjustments to the southerly boundary of the hills open space
parcel may subsequently be made with the recordation of a final tract map, in conformance
with the adopted Margarita Area Specific Plan. Upon recordation of final tract map(s).
OWNERS shall dedicate to CITY creek corridors as delineated in the adopted Margarita Area
Specific Plan and as further defined in approved tentative and final subdivision maps.
7. ZONING IN COMPLIANCE WITH SPECIFIC PLAN. PARTIES anticipate that the
subject property will be zoned Conservation/Open Space upon annexation. Upon adoption of
the Margarita Area Specific Plan, CITY shall zone the subject property in conformance with
the specific plan. No additional application fee shall be required of the applicant for that
rezoning.
8. POTENTIAL ASSESSMENT DISTRICT. Within the next six to nine months, the City
expects to adopt a finalized specific plan and infrastructure improvement fees, form an
assessment district or other funding mechanism, or implement some combination of funding
mechanisms, to finance certain areawide public improvement costs. OWNERS and their
successors agree to support the formation of such a district or other funding mechanisms. Prior
to formation of any such district, OWNERS shall have the right to comment on the amount and
method of cost assessment and to negotiate with CITY concerning an amendment of this
agreement. Further, OWNERS shall have the option of completing identified improvements,
subject to approval of plans and inspection of work by CITY and with reimbursement by other
benefiting properties if appropriate, rather than funding such improvements through an
assessment district.
9. TERM OF AGREEMENT. The term of this agreement shall begin upon the effective
date of the annexation. The agreement shall remain in effect until modified or terminated by
mutual consent of the PARTIES. If the annexation does not become effective for any reason,
this agreement shall terminate and have no force and effect, as if it had never been entered into
by the PARTIES.
6-23
Pre-annexation Agreement(Margarita/King)
Page 5 of 6
10. SUCCESSORS, HEIRS, AND ASSIGNS. This agreement shall be recorded with the
County Recorder and shall bind and inure to the benefit of the successors, heirs, assigns, and
personal representatives of the PARTIES.
11. AMENDMENTS, TIME EXTENSION, OR CANCELLATION. This agreement may
be amended, extended, or canceled at any time by mutual consent of the PARTIES or their
successors in interest.
IN WITNESS WHEREOF, this agreement is executed on the date above stated at San Luis
Obispo, California. DD
;.'.::NA 1,ti�.' s..4 .�dt `•_' .,:.:1:`tf�.:..t
.liCiv:�P i?E`:' :aie"+' ',`BICE :::1;'.it" iii?:�'3iLr!ti ::� :3 •.!'!sSii`.i:. :)!3SSaE5S �f2 T:7i,`e'. Z)F' G�i iCCr' i)f ?. CO3'�N.)Pllt?O?2.
OWNERS ,
:l- � 4
BY: � �,� � ��'�� Bye
John�E. Ki g
BY: \ �/ BY:
.vp r,alzic: Carole D. Ki
6-24
Pre_annexation Agmement.(Margarita/Kirig)
Page-6 of 6
CITY OF SAN.LUIS OBISPO, A Chartered Municipal Corporation
APPROVED AS TO FORM:
to Yyjr
or sen
By..
Mayor Allen Settle
'State of California }
County of San Luis Obispo }
On 1999; before me, Lee Price, Notary Public, personally
appeared Allen Settle, personally known to me to be the person whose name is subscribed to the
within instrument and acknowledged to me that he executed the same in his capacity, and that by
= his signature on the instrument the person or the entity upon behalf of which the person acted,
executed the instrument.
Witness my hand and official seal.
Notary Public
Capaci!X claimed.by signer(s):
( ) individual(s) ( ) corporation ( ) partnership ( ) attorney-in-fact ( X ) political agency
6-25
STATE OF CALIFORNIA )
)S.S.
COUNTY OF SAN LUIS OBISPO )
On August 27, 1999, before me, Renee. M. Hebert, Notary Public, personally
appeared, John E. King-and_Carole D. King, as owners personally known tome to be
the person whose name is subscribed to the within instrument and acknowledged to me
that he executed the same in his authorized capacity, and that by his signature on the
instrument the person, or the entity upon behalf of which the person acted, executed the
instrument.
-Renee M. Hebert ;
Comm. #1129135 Q
NOTARY PUBLIC CAUFOR
WITNESS my hand and official seal
all SAN GUIs OBISPO COUNTY
Comm. Exp..March 9.2001
(SEAL)
NOTARY PUBLIC SIGNATURE
6-26
- Attachment #3
PRE-ANNEXATION AGREEMENT EXCERPT
SHOWING CHANGES FROM PREVIOUS DRAFT
Sierra Gardens (R. DeBlauw)
B. Neighborhood Elementary School Site Dedication and Development. Upen
aene*atie$, OWNERS shall pay to CITY $102,,980te be used by CITE aaquisitiefl
of a publie elemeatffy scheel site within the.Margarita Area This amount is based en
$610.00 erential dwelling le... density leAensit . e agland eatee.... n $447
e
dwellingpetential h density land as
in the fnedium and mediuma
pr-evided in the April 1998 Draft a
a
or CITY shad! refund to OWNERS the ieufH based en $610.00 per
ffteRfial a dwelling
in othGAINERS er- 1.; site ;r;.. F
ua.i !,Hid use a e
ac.
benefit distFiet to f;...mee ast..aetien of the seheel GAINERS and their- s
agree-caaPPvretie., of.. .el. ElistFiet
� r Taxa. ,
OWNERS sha4�rn4l have the right to eemmeiA en the afaeufA and Od Wf 6OSt
B. Neighborhood Elementary School Site. The specific plan is proposed to reserve a
site for development of a public elementary school.
6-27
PRE-ANNEXATION AGREEMENT EXCERPT
SHOWING CHANGES FROM PREVIOUS DRAFT
J. E. & C. D. King
B. Neighborhood Elementary School Site Dedication and Development. leen
ef a publie elementar-y seheel site within the MaFgaFita Area. This amount is based a
$610.00 per- petepAial dwellifig in the !@,A, density land use eategeff afid $482 pe
potential a
pr-e vided in the April 1998 DFaft Mar-gar-ka Area Speeifie Plan. if the nuffiber- e
density of dwellings di ff r-s in the adopted s eifie ..1.,.,, OWNERS shall pay to CFF
dwellings
eF CITY shall refund to OWNERS the to ieupA based on $610.90 e
peteFAial dwelliRg iR the !aw density land use eategerzy and $482 per- pateffiial dwellib
iR other- land use
a
beRefit d stFiet to r tmet:..., f the 1 eel OWNERS d the'
cec ceiasrrccrn�za-yr-ai��cm�vr,-v-rrxTcz�amm�cxcix scEccsSviS
OWNERS shall have the right to eemmepA on the ameuRt and methed of Fest
e e..t Rd t.. oti to with QTY ..dm .,t of this ..t eb
B. Neighborhood Elementary School Site. The specific plan is proposed to reserve a
site for development of a public elementary school.
6-28
PRE-ANNEXATION AGREEMENT EXCERPT
SHOWING CHANGES FROM PREVIOUS DRAFT
S. J. Martinelli
B. Neighborhood Elementary School Site Dedication and Development. Upen
aafie*atien, OWNERS sha4l pay ♦e GTTY 2.17
of a publie elefaeataFy seheel site widiia the Mar-gar-ka Area. This afneupA is based an
W0.0per- eteeEialdwelling-in the lew deasity land use eategefy ander'pei
petential dwelling in the Enedium and fnedium high deffiky land use
pr-evided iB ahe ApFj 1994 Draft Marga fk Area Speeif a Plan• if the number-b
deasit . of dwellings differ--s :., the adopted s :fie plan, !OWNERS shall .. !`T
, to TY
b ..
er- CITY shall refund te OWNERS the keuRt based en $619.00 peF
peteatio1 d..,elling in the lee de.sky land use eate..ei=y and $482 p pete.Aiai dwellin
b
in
ether 1.,.,d . eateger-;ems OWNERS ....L..ewledge that this site ., sifien fee
separate ffefa &ad in addit' aet fee established by the San Luis Coastal
benefit distFiet te rrmxco ^c-eivQcv,:arnr-er-the cavvz--OWNERS-mmcxca suCceaSvrS
OWNERS shall have the right to eewAaent en the amount and methed- f cost
_s__________ and tonegetiate with ___ _ __ ___ m____ of ___ _a__________.
B. Neighborhood Elementary School Site. The specific plan is proposed to reserve a
site for development of a public elementary school.
6-29
Attachment #4
San Luis Coastal Unified School District
1499 SAN LUIS DRIVE
SAN LUIS OBISPO • CA • 93401-3099
Telephone: (805) 543-2010
July 9, 1999
Mr. Dave Watson
King Ventures
290 Pismo Street
San Luis Obispo, CA 93401
Dear Dave:
Please excuse the delay in my response. Due to a number of incidents, I was unable to provide this letter in the
timely manner I had intended after our meeting two weeks ago.
In light of the status of the Margarita annexation the District would propose the following:
I. The four landowners would agree to place the project in a Community Services District.
2. An elementary school site would be designated in the specific plan where currently located by the City.
3. The District would compensate the Garcia's based on the fair market value of the site as a school site at the
time of annexation.
4. Compensation paid by the District to the Garcia's would be paid either from statutory Developer Fees or
through the sale of CFD Bonds.
5. The Board of Education (CFD) would not act to build a school on the site until the Margarita project was 60
percent completed and occupied and there had been an advisory vote of the property owners regarding
whether to build a school.
The above is conceptual and would need further definition by respective attorneys to ensure all is in accordance
with state laws.
I believe this approach provides for the District's interests while at the same time minimizing some financial
burdens upon the developments. Should you have any questions or concerns, please contact me.
Sincerely,
Rory L. Li 'ngston
Assistant Superintendent Business Services
RLL/kcb
c: Glen Matteson, Planner City of San Luis Obispo
c:\kcb\mydocs\a\Margarita Annexation Itr to DeBlauw,French,and Watson.799 6-30
District Superintendent,EDWIN DENTON,Fd-D.
As tant Superintendent of Educational Services,EDWARD T.V ALEN M Ed.D. Assts, t Superintendent of Business Services,RORY UVINGSCON
San Luis Coastaf Unified Schoof District
1499 SAN LUIS DRIVE
SAN LUIS OBIShone: ( • )5 • 2010 099
Telephone: (805)543-2010
MEETING 7 �y AGENDA
DATE_ITEM #
September 7, 1999 1111=1111 ---
EM
t _DD OIR❑FIN DIR❑FIRE CHIEF❑PW DIRMayor Allen Settle POLICE CtIF REC DIRand UTIL DIRMembers of the City Council PERS DIR ;� RECEIVED
City of San Luis Obispo
990 Palm Street SEP 7 - 1999
San Luis Obispo, CA 93401
SLO UTCLERK
Dear Mayor Settle:
On September 7, 1999, the City Council will have before it the reconsideration of Pre-
Annexation Agreements for the Margarita Annexation. As pointed out in the staff report,
this annexation process began in 1994. At all times, the inclusion of a school site and its
mitigation was part of the scope. In 1998, all mitigation matters were agreed to by the
owners and staff, and the annexation moved forward to the Council. Now, due to
intervention of the State Legislature, the present property owners wish to say to the school
district, "all bets are off." This action flys in the face of the parties who have been working
on this project.
The District, recognizing that there are now limitations on mitigation requirements, offered
the property owners a workable solution to this dilemma in my letter of July 9 (staff report
page 6-30). This proposal restricts the property owners to having to only pay the statutory
fees; has them agree to form a community facilities district; ensures the fourth property
owners (Damon-Garcia) will be paid for their property by the District; places the cost of the
future new school upon the future inhabitants of the development; sets the earliest point
that school construction could occur; and would allow future residents the ability to
influence the Board of Education before the school is built. This proposal involves
significantly lower financial costs to the property owners than what the owners were willing
to commit almost one year ago.
The property owners will say the Council cannot compel them to place the property in a
community facilities district. That is a true statement. Likewise, it is true that at the time
the Margarita Area Specific Plan and the pre-annexation agreements before the City
Council, the school impacts were mitigated in the plan. Now, the plan is significantly
changed by the actions of the property owners and the Legislature. In light of the changes,
the Council may wish to reconsider the annexation of the Margarita Area.
RECEIVED
4.;Fp Q 6 1999
District Superintendent,EDWIN DENTON,Ed.D.
Assistant Superintendent of Educational Services,EDWARD T.VALENTINE,Ed-D. Assistant Superintendent of Business Services,RORY LIVINGSTON
Mayor Allen Settle and Members of the City Council
September 7, 1999
Page 2
Annexation is a discretionary act by the Council. The change being requested by staff now
significantly modifies the annexation as originally presented and supported by the Council
and the community. The current stance of the property owners is not in keeping with the
spirit for which the Margarita Specific Plan was developed and approved.
The District requests that the Council reconsider the Margarita Annexation. If the Council
does not wish to reconsider the annexation, the District requests the Council act on
Alternative B presented in this evening's staff report.
I regret I am unable to attend tonight's City Council meeting. The San Luis Coastal Unified
School District Board of Education has a meeting occurring at the same time.
Sincerel
RY . LIVINGSTON
Assistant Superintendent, Business
RLL:iko