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Home My WebLink AboutSR - LAFCO Rvw of Spheres of Influence CITY OF PALM DESERT COMMUNITY DEVELOPMENT DEPARTMENT STAFF REPORT REQUEST: City of Palm Desert Spheres of Influence Review Request from the Riverside County Local Agency Formation Commission (LAFCO) SUBMITTED BY: Lauri Aylaian, Director of Community Development Stephen Y. Aryan, Assistant to the City Manager DATE: April 12, 2007 CONTENTS: 1. City of Palm Desert Sphere of Influence Map 2. Bermuda Dunes Annexation-Fiscal Feasibility Study (March 1996) Recommendation That the City Council, by Minute Motion: 1. Provide Direction to the Riverside County Local Agency Formation Commission relative to retention of the Del Webb Sphere of Influence. 2. Provide Direction to the Riverside County Local Agency Formation Commission relative to the retention of the Bermuda Dunes Sphere of Influence, and if the Council direction is to retain this sphere: a. Authorize staff to retain the services of a professional firm to conduct a fiscal impact feasibility study on the annexation of the Bermuda Dunes sphere of influence, and b. Appropriate an amount not to exceed $25,000 for a Fiscal Impact Feasibility Study on the Annexation of the Bermuda Dunes Sphere of Influence. Executive Summary The City of Las Quinta recently submitted an application to the Riverside County Local Agency Formation Commission (LAFCO) to annex a 20-acre parcel located within Palm Desert's Bermuda Dunes Sphere of Influence (SOI). LAFCO has asked the City of Palm Desert to respond to this request, and to make known its future plans for retaining or removing the Bermuda Dunes and Del Webb Spheres of Influence. This report requests Council direction regarding these two spheres of influence. If the Council wishes to retain the Bermuda Dunes SOI, the staff recommendation is to retain a specialty consultant to update the 1996 fiscal impact feasibility study. Agenda Report-City of Palm Desert Spheres of Influence Review April 12, 2007 Page 2 of 3 Discussion The City of La Quinta recently filed an annexation application with the Riverside County Local Agency Formation Commission. This request was for the annexation of a 20-acre parcel located on the east side of Washington Street, between Hidden River Road and Darby Road (see Figure 1). The City of La Quinta requested this annexation for a project aimed at bolstering affordable senior housing within their community. LAFCO has determined the property to be in Palm Desert's sphere of influence (SOI) and that this application will be scheduled for a formal hearing within one to two months. The City of Palm Desert should receive a formal notice from LAFCO before the hearing date. � - .. Ana wo�nbed A _ < for�wu�e�stlan �,�N,� o� : FNdiden t�x t�d. , � :: � �� ; _ ��' �� %` �� Dt�blrpb, . <: Y '� . ._.....� � Figure 1 On a related subject, LAFCO is undertaking sphere of influence hearings for Coachella Valley cities, beginning with the western portion of the Valley. A sphere of influence is defined as a plan for the probable physical boundaries and service area of a local agency. Of particular importance to Palm Desert will be if Bermuda Dunes continues to be included in the City's sphere of influence. The City Council may also wish to consider retaining or removing the Del Webb Sun City sphere of influence. On March 7, 2007, a City Council annexation subcommittee met with Wayne Fowler, LAFCO Sr. Local Government Analyst, about these two issues. Mr. Fowler indicated that LAFCO wishes to ascertain if the City wants to preserve these two spheres of influence, before the formal SOI review and subsequent hearing for the La Quinta 20-acre annexation request. The City's SOI formal review should occur around May 2007 and before the La Quinta annexation hearing. Mr. Fowler also reported that County Supervisor Roy Wilson was not supportive of La Quinta's request to annex the property within Palm Desert's SOI. Approximately ten years ago, members of the Bermuda Dunes community approached the City of Palm Desert concerning an annexation proposal. The City initiated a fiscal analysis on the impacts of annexing Bermuda Dunes into the City. The analysis indicated revenues generated by the annexation would fall well below service expenditures. In March 1996, the City informed the Bermuda Dunes Community Council that Palm Desert did not encourage or support the Agenda Report-City of Palm Desert Spheres of Influence Review April 12, 2007 Page 3 of 3 annexation of Bermuda Dunes within Palm Desert. In September 2000, LAFCO recommended that the area of Bermuda Dunes south of Interstate 10 be within the Palm Desert SOI. However, LAFCO staff was concerned that this area could be relegated to permanent"island" status. Their recommendation was made with the hope that this would be the first step in opening up a new dialogue about annexation between residents, the County, and the City. If the City Council wants to retain the Bermuda Dunes SOI and consider possible future annexation, staff recommends that the City conduct a new fiscal impact analysis. This analysis will assist in determining if it is financially feasible to maintain this SOI; this information is relevant to LAFCO's inquiry. The County has indicated the possibility of providing a considerable financial investment over two years for a major renovation of Bermuda Dunes' existing infrastructure. The sufficiency of this funding to bring Bermuda Dunes' streets, sidewalks, drainage systems, and infrastructure up to City of Palm Desert standards has not been determined. Nonetheless, an updated fiscal analysis may demonstrate a more favorable outcome for annexation than the earlier study. If the analysis indicates that revenues continue to fall behind expenditures, Staff will likely recommend that the City Council consider removing the Bermuda Dunes sphere of influence. This item is now before the City Council for their consideration and direction. Submitted By: � � � �� auri Aylaian �- Stephe Y. Aryan Director of Community Development Assistant to the C' Manager Approved By: Reviewed By: �� 1.—� � � � Carlos L. ga �t Homer L. Croy City Manager Assistant City Manager, Development Services Paul S. Gibson Director of Finance/City Treasurer REGUI.AR PALM DESERT CI^ �OUNCIL MEETING — APRIL 12, 2007 XIV. NEW BUSINESS G. CONSIDERATION OF THE RIVERSIDE COUNTY LOCAL AGENCY FORMATION COMMISSION'S (LAFCO) REQUEST FOR REVIEW OF THE CITY OF PALM DESERT SPHERES OF INFLUENCE. a� By Minute Motion, authorized: 1) Official notification to LAFCO that the City of Palm Desert has no interest in maintaining the Del Webb - Sun City - Palm Desert Sphere of Influence north of I-10; 2) Maintaining Bermuda Dunes within Palm Desert's Sphere of Influence for the time being and instruct the City Manager to have an updated cost assessment done for the City's potential annexation in the future; 3) no answer to the City of La Quinta question but instruct City Manager to meet with the La Quinta City Manager and return with a specific re- commendation. 3-2 (Benson, Kelly NO) �TTY COUNCIL ACTION: " �PR��D `�� DENIED RECEIVED OTHER MEE�'IN @ATE � AY�S• � ietOFS> AI3SENT: ABSTAIN: {IL�IFIED By; 7riginal on File h Ci�y Cler7c's OffirE