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2022-24 Terra Nova Amendment 4 - SOI Fiscal Analysis Full PacketMEMORANDUM 40idea {:11.1E11R\E.1 DATE: September 28, 2022 TO: Monika Radeva, City Clerk FROM :Tania Flores, Planning Admin Tech RE: Amend No. 4 to Agreement for Contract Services with Terra Nova Planning & Research, Inc. for additional funds of $117,250 for Sphere of Influence fiscal analysis project Please list the Contracting Party / Vendor Name, type of agreement to be executed, including any change orders or amendments, and the type of services to be provided. Make sure to list any related Project No. and Project Name. Authority to execute this agreement is based upon: Approved by City Council on 09/20/2022 - Business Item No. 2 City Manager's signing authority provided under the City's Purchasing Police [Resolution No. 2019-021] for budget expenditures of $50,000 or less. Department Director's or Manager's signing authority provided under the City's Purchasing Policy [Resolution No. 2019-021] for budget expenditures of $15,000 and $5,000, respectively, or less. Procurement Method (one must apply): Bid RFP T1 RFQ [7 3 written informal bids Sole Source Select Source Cooperative Procurement Requesting department shall check and attach the items below as appropriate: 101-6002-60103 Project Nos. Below Agreement payment will be charged to Account No.: Agreement term: Start Date 09/20/2022 End Date 06/30/2024 Amount of Agreement, Amendment, Change Order, etc.: $$117,250 REMINDER: Signing authorities listed above are applicable on the aggregate Agreement amount, not individual Amendments or Change Orders! J _L Insurance certificates as required by the Agreement for Risk Manager approval Approved by: Current Insurance Certs on file Date: Bonds (originals) as required by the Agreement (Performance, Payment, etc.) Conflict of Interest Form 700 Statement of Economic Interests from Consultant(s) NOTE: Review the "Form 700 Disclosure for Consultants" guidance to determine if a Form 700 is required pursuant FPPC regulation 18701(2) Business License No. LIC -0005753 Expires: 4/30/2023 Requisition for a Purchase Order has been prepared (Agreements over $5,000) PO 2223-0056 Project No: Legal - SOI -L Planning - SOI -TN AMENDMENT NO. 4 TO CONTRACT SERVICES AGREEMENT WITH TERRA NOVA PLANNING AND RESEARCH, INC. This Amendment No. 4 to Contract Services Agreement (Agreement) is made and entered into as of the XC - day of September, 2022 ("Effective Date") by and between the CITY OF LA QUINTA ("City"), a California municipal corporation and TERRA NOVA PLANNING AND RESEARCH INC., a Corporation ("Contracting Party"). RECITALS WHEREAS, on or about September 9, 2019, the City and Contracting Party entered into an Agreement to provide on-call planning services for the City. The term of the Agreement expires on June 30, 2022; and WHEREAS, on June 16, 2020, the City and Contracting Party executed Amendment No. 1, to include additional services relating to preparing an update to the Housing, Land Use, and Safety Elements of the General Plan, and increased the Contract Sum by an additional $69,975 per year for fiscal years 2020/21 and 2021/22; and WHEREAS, on or about June 1, 2021, the City and Contracting Party amended the not to exceed compensation amount by $10,000 for fiscal year 2020/21 due to an increase in workload for complex entitlement projects that required more processing time, and amended Section 2.1 Contract Sum to reflect this change; and WHEREAS, the City and Contracting Party mutually agree to extend the contract by two years (Extended Term) and increase the not to exceed compensation amount by $30,000 over the Extended Term, for fiscal years 2022/23 and 2023/24, due to an increase in workload for planning entitlement applications and associated environmental documentation, and amend Section 2.1 Contract Sum to reflect this change; and WHEREAS, on September 20, 2022, the City and Contracting Party executed Amendment No. 4, to expand on-call planning services in the amount of $117,250, to include preparation and processing of fiscal impact analysis and applications for City annexation of the southern Sphere of Influence area through Fiscal Year 2023/2024; and NOW THEREFORE, in consideration of the mutual covenant herein contained, the parties agree as follows: Rev. 7/28/2017 AMENDMENT In consideration of the foregoing Recitals and the covenants and promises hereinafter contained, and for good and valuable consideration, the sufficiency and receipt of which are hereby acknowledged, the parties hereto agree as follows: 1. Section 1.1 Scope of Services is amended to read as follows: In compliance with all terms and conditions of this Agreement, Contracting Party shall provide additional services related to preparing and processing of fiscal impact analysis and applications for City annexation, as specified in "Scope of Services" attached hereto as "Exhibit A" and incorporated herein by this reference (the "Services"). 2. Section 2.1 Contract Sum is amended to read as follows: For the Services rendered pursuant to this Agreement, Contracting Party shall be compensated in accordance with "Exhibit B" (the "Schedule of Compensation") in a total amount not to exceed Five Hundred Fifty Seven Thousand and Two Hundred Twenty Five Dollars ($557,225.00) for the life of the Agreement, which includes One Hundred Seventeen Thousand and Two Hundred Fifty Dollars ($117,250.00) per year for the Extended Term ("Contract Sum"), except as provided in Section 1.7. In all other respects, the original Agreement shall remain in effect. IN WITNESS WHEREOF, the City and Contracting Party have executed this Amendment No. 4 to the Agreement on the respective dates set forth below. CITY OF LA QUINTA a California municipal corporation �1 JON MCMf..LEN, City Manager City of La Quinta, California ATTEST: Rev. 7/28/2017 Dated: 10/(..0 2.6z2_. IF MONIKA RAD EV', ity Clerk City of La Quinta, alifornia APPROVED AS TO FORM: WILLIAM H. IHRKE, City Attorney City of La Quinta, California CONSULTANT: TERRA NOVA PLANNING & RESEARCH, INC. fCorporation1 By Name: Nicole Sauviat Criste Title: , Principal Rev. 7/28/2017 I EXHIBIT A SCOPE OF SERVICES L 4 TERRA NOVA PLANNING & RESEARCH, INC. August 2, 2022 Mr. Danny Castro & Ms. Cheri Flores City of La Quinta 78495 Calle Tampico La Quinta, CA 92253 RE: Annexation of Sphere of Influence Dear Danny and Cheri: Following our recent conversations, we have prepared the following proposal for several options relating to the annexation of the City's southern Sphere. The potential scenarios, as we understand them, are: 1. Free-standing analysis of the potential fiscal impacts of annexing only the City's southern Sphere of Influence (Sphere). 2. Preparation and processing of annexation application, including associated supporting documents. 3. Preparation of a fiscal impact analysis of lands east of the City's existing southern Sphere, in preparation of a Sphere of Influence amendment application. It is important to note that certain changes in the law may cause the Local Agency Formation Commission (LAFCo) to require that we also annex the northern Sphere as part of Option 2. For purposes of this proposal, this addition has not been included, but would be expected to be minor in terms of both scope of work and budget. Option 1 - Fiscal Impact Analysis, Existing Sphere This option would result in the preparation of a fiscal impact analysis which would analyze the potential costs and revenues associated with annexing either half or the entirety of the City's existing southern Sphere. The analysis can be completed in two parts: the Sphere to Jackson Street, or the entire Sphere. Assumptions regarding land use would be based on existing City General Plan designations, which were included in the City's existing General Plan and Environmental Impact Report (EIR). GIS data would be used to identify existing vacant and developed lands, and cost and revenue assumptions based on multiple scenarios. Assumptions regarding the pace of build out would be developed with City staff, but it is expected that build out would take several decades. The lack of property tax revenues would be factored into the analysis 42635 MELANIE PLACE, SUITE 101, PALM DESERT, CA 92211 (760) 341-4800 Danny Castro and Cheri Flores August 2, 2022 Page 2 of 8 through 2035. At the City's option, property tax can be calculated for revenues after 2035, or can be assumed to continue to be suspended, should the County not release the debt which currently prevent property tax from being shared with the City. All costs and revenues would be calculated in 2022/2023 dollars. Separate narrative assumptions regarding the likely increases in police and fire costs would be included in the final report, as they have in the past outpaced inflation when contracts have been renewed. Cost and revenue categories would be developed with City staff, and Terra Nova will rely on assistance from Finance Department staff for historic data and assistance in the development of formulas for revenues such as property transfer tax, in -lieu motor vehicle taxes, transient occupancy tax and sales tax (including both base sales tax and Measure G revenues). Costs will be calculated using the City's 2022-2023 budget, and generally based on per capita calculations to yield the most conservative assumptions. A report of findings will be prepared for the City's use. The scope of work for Option 1 is summarized as follows: 1.A. Build Out Land Use Scenario Working with City staff, develop build out scenario for all lands in the existing Sphere. These land use designations and assumptions (including square footage of commercial space, hotel rooms, residential units, etc.) will be included in the fiscal model. 1.B. Fiscal Impact Analysis Using Terra Nova's existing analysis model, calculate costs and revenues for up to 4 build out scenarios to be developed in cooperation with City staff. For preliminary consideration, the following are proposed: • Immediately upon annexation (existing development only); • 2030/Additional development of 25% of currently vacant lands, no property tax; • 2040/Additional development of 50% of currently vacant lands, with property tax; and • 2050/Build out of all lands, with property tax. A report of findings will be prepared, summarizing the fiscal model calculations, and determining whether/when the annexation would be fiscally positive for the City. The analysis will be in a format suitable for use if Option 2 is pursued. 1.C. City Council Presentation Terra Nova will assist City staff in the preparation of a City Council staff report, and attend one City Council meeting (study session) to report on the findings of the analysis. Danny Castro and Cheri Flores August 2, 2022 Page 3 of 8 Option 2 - Annexation of Existing Sphere The City's Sphere of Influence currently encompasses 8,300± acres located east of Monroe Street, south of Avenue 52, north of Avenue 62, and west of Harrison Street. Lands include single family residential, ranching and farming, limited commercial and resort uses, and vacant lands. The Sphere encompasses the unincorporated community of Vista Santa Rosa. Its Community Council must be consulted on the potential for annexation, and community outreach will be required throughout the area. This is particularly important because the Sphere is populated, and LAFCo will be required to complete a protect hearing after the Board's action on annexation. The Riverside County Local Agency Formation Commission (LAFCo) would process the annexation application. To complete that process, a number of documents are required, including pre -zoning and initiation resolutions, a fiscal impact analysis, a plan of services, and a California Environmental Quality Act (CEQA) document. In this case, we would propose an Addendum to the General Plan EIR, since it included the annexation area. The Addendum would address changes since the preparation of the General Plan EIR, to provide updated CEQA compliance for the annexation. A Legal Description/Metes and Bounds will also be required. For purposes of this proposal, we have assumed that this task will be undertaken by the City Engineer, and it is not part of this proposal. Option 2 would consist of the following scope of work: 2.A. Community Outreach Hold three community workshops, in the annexation area, to assure that the annexation proposal is supported. This would include at least one Community Council presentation and two other workshops for residents and property owners. It is highly recommended that these workshops be attended by City Council member(s), to improve the outcomes. 2.B. Annexation Applications Terra Nova will prepare the necessary Initiation Resolution and Pre -Zoning Ordinance and submit them to City staff for review and approval. At this time, no land use designation amendments are expected. Our scope of work and budget do not include General Plan or Zoning text or map amendments. Should they become necessary to accommodate uses not currently allowed under City designation(s) or zone(s), we will develop a scope and budget for City consideration. This task will also include attendance at up to two City Council hearings. Following City Council action, Terra Nova will prepare all necessary LAFCO applications, including attachments, and submit them to City staff for review and approval. We propose a turn -key service for this project, which Danny Castro and Cheri Flores August 2, 2022 Page 4 of 8 would include all copies, transmittal and delivery to LAFCO. We have assumed, for purposes of this proposal, that the City will be responsible for LAFCO application fees and preparation of the Legal Description/Metes and Bounds (which must be signed by an engineer or surveyor). 2.C. Plan of Services The Plan of Services must include a description of all services, including general government services, water, sewer, roadway maintenance, police and fire services, library services, etc. The Plan of Services must demonstrate that the City and other agencies can serve the annexation area. 2.D. Fiscal Impact Analysis This task is assumed to have been completed under Option 1. If the City chooses to move forward immediately to annexation, Option 1's scope of work and budget would be added to Option 2's. 2.E. CEQA Documentation Prepare a comprehensive EIR Addendum, in a format acceptable to the City, which analyzes the annexation action and the build out of the annexation area. The analysis will incorporate the General Plan environmental documentation to the maximum extent possible. At this time, no technical reports are proposed, since the General Plan EIR included the Sphere, and conditions have not substantially changed. 2.F. LAFCO Coordination and Hearing Attendance Throughout the process, Terra Nova's project manager will keep in close contact with LAFCO and City staff, and assure a prompt and efficient processing. We will also coordinate LAFCO hearing presentations with City staff, and would help with PowerPoint presentations and handouts, as needed. For purposes of this proposal, we have assumed one LAFCO hearing would be required. Option 3 - Fiscal Impact Analysis, Expanded Sphere Option 3 would provide the same level of analysis as Option 1, but for lands east of Harrison Street, in a configuration to be determined in coordination with City staff. The extend to which the City may wish to expand its Sphere is currently unknown, but for purposes of this proposal, we have assumed that the boundary would be determined by the City Council, at the Option 1 study session. It is important to note that lands east of Harrison are in the unincorporated community of Thermal. The level of potential support for a Sphere Amendment, and an eventual annexation is unknown. Portions of the County's Thermal community of interest boundary currently occur in the City of Coachella's Sphere of Influence, and portions are unclaimed. Danny Castro and Cheri Flores August 2, 2022 Page 5 of 8 If the City prefers to undertake Option 1 and Option 3 together, and receive a resulting cumulative analysis, that has been provided for in the budget below. The scope of work for Option 3 is summarized as follows: 3.A. Build Out Land Use Scenario Working with City staff, develop the boundaries and build out scenario for an expanded Sphere. These land use designations and assumptions (including square footage of commercial space, hotel rooms, residential units, etc.) will be included in the fiscal model. 3.B. Fiscal Impact Analysis Using Terra Nova's existing analysis model, calculate costs and revenues for up to 4 build out scenarios to be developed in cooperation with City staff. For preliminary consideration, the following are proposed: • Immediately upon annexation (existing development only); • 2030/Additional development of 25% of currently vacant lands, no property tax; • 2040/Additional development of 50% of currently vacant lands, with property tax; and • 2050/Build out of all lands, with property tax. A report of findings will be prepared, summarizing the fiscal model calculations, and determining whether/when the expanded Sphere would be fiscally positive for the City. 3.C. City Council Presentation Terra Nova will assist City staff in the preparation of a City Council staff report, and attend one City Council meeting (study session) to report on the findings of the analysis. Proposed Budget The budget has been developed based on the Options and tasks described above. Danny Castro and Cheri Flores August 2, 2022 Page 6 of 8 Option 1 1.A Consultation and Meetings Build Out Land Use Scenario GIS Analysis - Land Use Maps 1.B. Fiscal Impact Analysis Project Management 1.C. Preparation and Attendance, 1 City Council Study Session Admin. Support Misc. Office $ 2,925.00 $ 5,400.00 $ 2,000.00 $ 16,600.00 $ 3,900.00 $ 1,950.00 $ 900.00 $ 100.00 Option 1 Total $ 33,725.00 Option 2 2.A. Community Outreach (3 workshops) 2.B. Consultation and Meetings Pre -Annex Reso, Ordinance, and Application Preparation and Management 2.C. Plan of Services 2.D. Fiscal Impact Analysis 2.E. CEQA Addendum Documentation & Drafting 2.F. Project Management Preparation and Attendance, 1 City Council Hearing and 1 LAFCo Board Hearing Admin. Support Misc. Office: application sets, photocopies, etc. $ 9,300.00 $ 5,850.00 $ 6,200.00 $ 4,800.00 See Option 1 $ 15,650.00 $ 6,825.00 $ 3,900.00 $ 1,800.00 $ 3,000.00 Option 2 Total $ 57,325.00 Option 3 3.A Consultation and Meetings Build Out Land Use Scenario GIS Analysis - Land Use Maps 3.B. Fiscal Impact Analysis Project Management 3.C. Preparation and Attendance, 1 City Council Study Session $ 2,925.00 $ 6,550.00 $ 2,200.00 $ 18,600.00 $ 3,900.00 $ 1,950.00 Danny Castro and Cheri Flores August 2, 2022 Page 7 of 8 Admin. Support Misc. Office $ 900.00 $ 100.00 Option 3 Total $ 37,125.00* *If Option 3 is undertaken concurrent with Option 1, the total of the two Options would be $59,925.00. Total (each Option undertaken sequentially) $128,175.00 Total (all Options undertaken together) $117,250.00 Conclusion I believe that this proposal accurately reflects our understanding of what is needed to provide options for the City to consider. Please feel free to contact me if you have any questions. Nicole Sauviat Criste Principal Danny Castro and Cheri Flores August 2, 2022 Page 8 of 8 TERRA NOVA PLANNING & RESEARCH, INC.® 42635 Melanie Place, SUITE 101 PALM DESERT, CA 92211 760-341-4800 STANDARD FEE SCHEDULE 2022 Terra Nova invoices its clients on a cost -basis using an hourly billing system. The scope of each planning effort is typically broken down by task and assigned estimated necessary staff time and the applicable hourly rate. Reimbursable expenses are charged on a cost basis, except where otherwise indicated. All payments for services rendered are to be made payable to Terra Nova Planning & Research, Inc. unless otherwise indicated. Clients are invoiced on a monthly basis, and invoices are due and payable upon receipt. Terra Nova Staff Hourly Rate Principal Planner $ 195.00 Senior Planner $ 160.00 Associate Planner $ 140.00 Assistant Planner $ 115.00 GIS/Graphics Technician $ 65.00 Administrative Assistant $ 45.00 REIMBURSABLES Photo Copies (8.5" X 1 1 " BW) $ 0.15 ea. (8.5" X 1 1 " Color) $ 0.30 ea. (1 1 " X 17" BW) $ 0.30 ea. (1 1 " X 17" Color) $ 0.60 ea. Large Format Plots BW $ 1.00/S.F. Color $ 5.00/SF Telephone Toll Charges Cost FAX Transmittals Cost Reproduction, Special photographic services, document printing, aerial photogrammetry, postage, etc. Cost Exhibit B Schedule of Compensation With the exception of compensation for Additional Services, provided for in Section 2.3 of this Agreement, the maximum total compensation to be paid to Contracting Party under this Agreement is as noted in detail below per fiscal year and service types, for a total not to exceed amount of $557,225 ("Contract Sum") for the life of the Agreement encompassing the initial and any extended terms. The Contract Sum shall be paid to Contracting Party identified in Contracting Party's schedule of compensation attached hereto for the work tasks performed and properly invoiced by Contracting Party in conformance with Section 2.2 of this Agreement. Initial Term: Not to Exceed: FY 2019/20 On -Call Planning Services $60,000 FY 2020/21 On -Call Planning Services $70,000 FY 2021/22 On -Call Planning Services $60,000 FY 2020/21 & 2021/22 General Plan Update $69,975 FY 2022/23 On -Call Planning Services $90,000 FY 2023/24 On -Call Planning Services $90,000 Initial Term Total: $439,975 Amendment: Not to Exceed: FY 2022/23 & 23/24 SOI Analysis $117,250 Total Not to Exceed: $557,225 Rev. 7/28/2017 BUSINESS SESSION ITEM NO. 2 City of La Quinta CITY COUNCIL MEETING September 20, 2022 STAFF REPORT AGENDA 'h . APPROVE AMENDMENT NO. 4 TO AGREEMENT FOR CONTRACT SERVICES WITH TERRA NOVA PLANNING & RESEARCH, INC. FOR ADDITIONAL ON-CALL PLANNING SERVICES AND APPROVE BUDGET APPROPRIATION RECOMMENDATION Approve Amendment No. 4 to Agreement for Contract Services with Terra Nova Planning & Research, Inc. to expand on-call planning services to include preparation and processing of fiscal impact analysis and applications for City annexation; and authorize the City Manager to execute the agreement. EXECUTIVE SUMMARY • Terra Nova Planning & Research, Inc. (Terra Nova) is currently contracted with the City to provide on-call planning services during peak workloads and as needed for expertise on special and complex planning projects. • Amendment No. 4 (Amendment) (Attachment 1) would include additional planning services to include the preparation and processing of fiscal impact analysis and applications for City annexation, including analysis of areas beyond the sphere of influence (SOI). FISCAL IMPACT The current two-year contract with Terra Nova is for $90,000 per year which is already included in the fiscal year 22/23 budget. If approved, Amendment No. 4 proposes an increase of $117,250 for fiscal year 22/23 and 2/24, for a total to not exceed amount of up to $557,225 for the life of the agreement. Staff is requesting a budget adjustment in the amount of $58,625 under the Planning Division Professional Services account 101-6002-60103 funded by the fiscal year 22/23 budget surplus. Funding in the amount of $58,625 will be budgeted in fiscal year 23/24. 329 BACKGROUND/ANALYSIS On August 2, 2022, City staff provided City Council an update on the Riverside County Local Agency Formation Commission (LAFCO) Municipal Services Review and Sphere of Influence Review (Attachment 2). Per that update, the last LAFCO meeting concluded with no changes to the City's SOI. Terra Nova then drafted a proposal for economic feasibility associated with possible future annexations. The Scope of Work of the proposal can be found as Exhibit A on Attachment 1 and can be summarized in the following three steps: 1) Fiscal impact analysis of annexing the City's existing SOI 2) Preparation and processing of annexation application 3) Fiscal impact analysis of lands east of the City's existing SOI (Attachment 3) Steps 1 and 3 would be completed concurrently as a first phase and then presented to Council for review and consideration prior to beginning Option 2 as a second phase. It is anticipated that the first phase would take approximately three (3) months to complete. The second phase could take up to two (2) years to complete. Terra Nova currently provides on-call planning services to the City and is an extension of staff in processing complex entitlement applications, including but not limited to General Plan Amendments, Zone Changes, Specific Plans, Site Development Permits, Tentative Tract Maps and associated environmental documentation. The current on-call contract for Terra Nova was recently extended for two -years. The current contract expires June 30, 2024. The Amendment would add a one-time amount of $117,250 to perform detailed financial analysis and prepare and process applications associated with annexation. Terra Nova is uniquely qualified to prepare, process, and present on the fiscal impact analysis and annexation applications. ML 1 eRNIlTIVE: Council may elect not to approve the Amendment or not undertake the proposed services. Prepared by: Cheri L. Flores, Planning Manager Approved by: Danny Castro, Design and Development Director Attachments: 1. Amendment No. 4 to Agreement for Contract Services 2. August 2, 2022 Department Report 3. S I Expansion 330 City of La Quinta CITY COUNCIL MEETING DEPARTMENT REPORT ATTACHMENT 2 DEPARTMENTAL REPORT ITEM NO. 1 TO: Madam Mayor and Members of the City Council FROM: Danny Castro, Design and Development Director Cheri Flores, Planning Manager DATE: August 2, 2022 SUBJECT: Riverside County Local Agency Formation Commission Municipal Services Review and Sphere of Influence Review Update Riverside County Local Agency Formation Commission (LAFCO) initiated a Municipal Service Review (MSR) and Sphere of Influence (SOI) review process in 2019 as required by the Cortese -Knox -Hertzberg Local Government Reorganization Act of 2000. The MSR included all Cities in Riverside County. La Quinta participated in this review in 2020 and provided background information for the City's section of the MSR. What is a MSR? A MSR is a comprehensive study designed to better inform LAFCO, local agencies, and the community about the provision of municipal services. What is a SOI? A SOI is a planning tool adopted and used by LAFCO to designate the future boundary and service area for a city or special district. La Quinta's SOI is generally described as south of Avenue 52, east of Monroe Street, west of Harrison Street and north of Avenue 62 (Attachment 1). MSR Findings and Public Hearings The findings of the MSR state that La Quinta's SOI should remain unchanged; and LAFCO staff recommended no changes. On June 23, 2022, LAFCO held a duly noticed public hearing to consider the MSR and SOI reviews, where the City of Coachella (Coachella) submitted an "11th hour" proposals requesting changes to Coachella's SOI boundaries; the two (2) proposals submitted by Coachella encroach into La Quinta's SOI as depicted in the maps enclosed as Attachment 2. Coachella's basis for this SOI amendment request is that Coachella provides water and sewer services to a portion of the area. LAFCO continued the public hearing for the MSR and SOI reviews to July 28, 2022, 343 to allow LAFCO staff additional time to review information provided at the June 23rd public hearing. La Quinta staff researched the MSR, LAFCO's staff reports, and Coachella's amendment request and information provided, and issued correspondence to LAFCO listing arguments in objection to Coachella's request. La Quinta Staff and the City Attorney's Office attended the July 28, 2022, hearing and provided public comments along with the City of La Quinta Mayor supporting LAFCO staff's recommendation for La Quinta's SOI to remain unchanged. Comments provided are summarized below: • La Quinta's extensive community outreach and compliance with LAFCO's requirements undertaken during LAFCO's 2005-2006 MSR review process to have the current SOI boundary history and process undertaken when La Quinta's current SOI boundaries were assigned • La Quinta's SOI is planned and pre -zoned for in the General Plan • Multiple developers' interests from La Quinta's SOI to annex into the City's limits • La Quinta's analysis and planning to expand public safety services into its SOI for both, police and fire • Coachella's request to amend the SOI boundary is based on a water service agreement that was entered into in violation of LAFCO policies and based upon substantial misrepresentations. • La Quinta's community outreach and commitment to continued communication with the property owners and residents of the SOI area and Vista Santa Rosa community • La Quinta is leading the effort to increase and improve energy capacity for the area • La Quinta's support of LAFCO's staff recommendation for La Quinta's SOI to remain unchanged. LAFCO approved the MSR and SOI review with no change to La Quinta's SOI. Next Steps The team is currently engaging a consultant to prepare an economic feasibility analysis of the La Quinta SOI. Additionally, mailers were sent to landowners within the SOI requesting their feedback on the issue (Attachment 3). A digital survey is also available on the City's website at www.laquintaca.gov/vistasantarosa. La Quinta will continue to reach out to the community to gain further feedback. Attachments: 1. La Quinta's current SOI Map 2. Coachella's SOI Amendment Request Maps 3. La Quinta's Community Outreach Mailer to Vista Santa Rosa 344 ATTACHMENT 1 City of La Quinta and Sphere of Influence PALM__ muu DESERT mwa DP, INDIAN WELLS atyd [;on,nX,In+tiQ� `' Mp LA Qurn? a a ; pia sor • • - 1 pj5,adti'anaaged Unrnccfpol puu)as piireluusly �ianllfiled Ely LAFCO (ACS • 2016-11:1State,+ideMeae1h ehodTnuAma 01H1) of 554,883, 844M of vAikh is 548.70& Hn+e RUCL OCS 241 5-19) Statawwfdo Mullan Imam ct 8T5,235, 80% of whIch Is Rain utlii vorporatod Islanea Eirkd Pndivals 9C piEwLoissiy Ideflldled by RivErefdo LhFCO N Y 1 AMER*,rNro sor INDIO i Y-11 212aUKMIKI , Pi } COACHELL.A rW . Lk, P7 C COA'CHELL4 s D, I,f ■ gergIagA Lfi=QUINTA SOr,- r� 0 1 2 Miles soLove. R$G fry . R+v$rslde !AMC. Rnbra,tde GeNielly rr RSG does not recommend any changes to the La Quinta SOI and staff concurs with this assessment. Staff recommends confirming the current City of La Quinta SOI boundaries. RSG aJuinn 4,tegunogr log pile JI waano '8jr mpg UDE ReNJ — geaci+ e! H AJC r d 345 CO w 4 n 346 City of Coachella SOI Expansion Request - Alternative A Exhibit "SR9a" ATTACHMENT 2 Data Sources: County of Riverside; LAFCO 0 0.5 1 2 Miles City is requesting its SOI to include areas in P7 and parts of La Quinta & Indio's SOI. In Addition, City is requesting removal of areas east of their current SOI that is zoned as Open Space (O -S). See Staff Report for details. N Disclaimer: The information shown is intended to be used for reference and general display purposes only and is not to be used as an official map. Author: Crystal Craig & Michael Henderson Map Created on 05/25/2022 Legend ▪ DUC 1 & la - Vista Santa Rosa (La Quinta SOI) DUC 1 - Carver Tract (Indio SOI) 1 1 Coachella SOI Request (Not in General Plan) ® City SOI Removal Request Q Augustine Tribal Area Vista Santa Rosa Community Council Q City of Coachella CVWD Water/Sewer Agreement 1Z 1 County Islands & Pockets (7, 14, 15 & 16) Cities I— I City of Coachella [1 City of Indio City of La Quinta I I City Spheres [—� Coachella SOI 0 Indio SOI i—� La Quinta SOI 347 City of Coachella SOI Expansion Request - Alternative B Exhibit "SR9b COUNTRY, CLUB • 52ND AVE Not'in GP 4 • f% 44 ,d. iti o n +A+ugustine . 1 ai AIRP.ORT0 BLVD City is requesting its SOI to include N Data Sources: County of Riverside; LAFCO areas in P7 and parts of La Quinta & Indio's SOI. In Addition, City is requesting 0 0.5 1 2 removal of areas east of their current SOI Miles that is zoned as Open Space (O -S). See Staff Report for details. Legend Cities 348 DUC 1 & la - Vista Santa Rosa (La Quinta SOI) DUC 1 - Carver Tract (Indio SOI) = City of Coachella 1 — 1 Coachella SOI Request (Not in General Plan) ® City SOI Removal Request r Augustine Tribal Area Vista Santa Rosa Community Council 1 1 City of Indio = City of La Quinta ,, , 4.,, _r Disclaimer: The information shown is intended to be used for reference and general display purposes onlyand is p Y p p , not to be used as an official map. Author: Crystal Craig & Michael Henderson MapCreated on 05/25/2022 City Spheres Coachella SOI Indio SOI City of Coachella CVWD Water/Sewer Agreement 1 :1 County Islands & Pockets (7, 14, 15 & 16) — La Quinta SOI 11 The City of La Quint° recognizes the unique character, history, and importance of Vista Santa Rosa. In April 2006, the Riverside County Local Area Formation Commission (LAFCO) voted to include Vista Santa Rosa into the City of La Quinta's Sphere of Influence (SOI). Who is LAFCO? Independent State authority that evaluates community boundaries and SCI's. What is an SOI? Long-range planning tool used to conduct service and facilities planning for potential annexation. What is Annexation? The action taken by LAFCO to add an area into a city's jurisdiction. In the past, the City of La Quinta reached out directly to you or the past owner of your property. The vast majority of property owners at that time chose to be included in La Quinta's SOI, In June 2022, the City of Coachella submitted a request to LAFCO to switch the majority of Vista Santa Rosa from La Quinta's SOI into Coachella's, without any notification or consultation of Vista Santa Rosa residents or the City of La Quinta, This communication is being sent by the City of La Quinta to keep you informed and discuss your desired interest in remaining in the La Quinta SOI, Your opinion counts. Please return the enclosed pre -stamped and seIP-addressed card to stag inPormed. 0 0 0 Find out more at www.laquintaca.gov/vistasantarosa Call (760) 777-7000 ATTACHMENT 3 m VD 'DESK WlVd alba 3DV1SOd SC 349 O O 0 0 MARCAR UNA DE LAS CAJAS 03 0 'L Oa 03 03 O — •.3 O O O c, L N C) o = o 03 • y =cn a 41.7 CI) V C7, a MARCAR UNA DE LAS CAJAS 03 0 a a Ea3 0 O CJ - G O C/D O O a = L • 0 O O U C.L. O 0 C a Ll 0L CO z W La Ciudad de La Quints reconoce el caracter unico, la historic y la importancia de Vista Santa Rosa, En abril del 2006, la Comision de Formacion del Area Local del Condado de Riverside (LAFCO) voto para incluir a Vista Santa Rosa en la Esfera de Influencia (SOI) de la Ciudad de La Quinta, ZQuien es LAFCO? Autoridad estatal independiente que evalua los limites de comunidades y los SOI. ZQueesunSO1? Herramienta de planificacion, a largo plazo utilizada para la planificacion de servicios e instalaciones para una posible anexion. ATTACHMENT 3 PRSRT STD US POSTAGE PAID PALM DESERT, CA PERMIT #149 LQue es la Anexidn? La accion tomada por LAFCO para agregar un area ala jurisdiccion de una ciudad. Anteriormente, la Ciudad de La Quinta se comunico directamente con usted o con el propietario anterior de su propiedad. La gran mayorra de los propietarios en ese momento optaron por ser incluidos en el SOI de La Quinta. En junio de 2022, la Ciudad de Coachella presento una solicitud a LAFCO para cambiar la mayorra de Vista Santa Rosa del SOI de La Quinta a Coachella, sin ninguna notificacion o sin consultaltar a los residentes de Vista Santa Rosa o la Ciudad de La Quinta. Esta communicacion esta siendo enviada por la Ciudad de La Quinta para mantenerlo informado y para discutir su interes en permanecer en La Quinta SOI, Su opinion cuenta. Por Favor regrese la tarjeta pre-sellada con su direccion adjunta para mantenerse inPormado. Obtenga mos inFormacidn en www.Iaquintaca.gov/vistasantarosa Llama al (760) 777-7000 - — GEM of the DESERT — ECRWSS Resicent La Quinta, CA 350 ATTACHMENT 3 4PAT pESERI • INDIAN .ELLS ILACEIRITI Proposed sphere of influence extension IIMDD COOA®HELLA aW 1Q z 0 AVENUE 62 1IU5IJI LEGEND proposed_sphere_of_influence_extension CitySpheres2 SPHERENAME COACHELLA INDIO LAQUINTA PALM DESERT CITYNAME COACHELLA INDIAN WELLS INDIO LAQUINTA PALM DESERT 351 Jan 2022 285