County Woes Giving Cities New Impetus to Annex Land

On a map of Costa Mesa, the 300 block of Monte Vista Avenue stands out like a missing piece of a jigsaw puzzle.

It’s one of about a dozen county unincorporated islands that dot the eastern part of the city.

Because Costa Mesa doesn’t have jurisdiction over the county pockets, the city’s street sweepers don’t clean the roads in those neighborhoods. Because they are policed by the Sheriff’s Department, Costa Mesa police make only emergency calls.

The situation has long perplexed city officials and some residents who say it is an example of government inefficiency.

Now, as the county struggles to recover from bankruptcy, Costa Mesa and about half a dozen other communities are considering plans to annex both developed and vacant county lands just outside the city limits.

Proponents said annexation would fit perfectly with county efforts to downsize government and reduce costs.

“At a time when the county is cutting back staff in virtually all its departments, we as cities are better equipped to service these areas,” said Costa Mesa City Manager Allan L. Roeder. “It really doesn’t make sense for these areas to remain under the county when they are surrounded by cities.”

The annexation attempts come as residents in nine unincorporated communities in South County, including Coto de Caza, Foothill Ranch and Dove Canyon, work to form a city, largely out of concern that the financial crisis will result in reduced services.

“People are worried that we are going to get the short end of the stick out of this bankruptcy,” said Ron Greek, a Coto de Caza resident and leader of the incorporation effort.

Despite the flurry of interest, most annexation drives are only in their beginning stages. Each application must be approved by the county and the Local Agency Formation Commission, a government body that processes annexation requests. Some will also require votes of the residents who live in the unincorporated tracts.

Another major obstacle is money.

Before each application is approved, the city and the county must agree on how to divide future tax revenue generated from the land. Roeder said the revenue-sharing issue has proved a key stumbling block in previous attempts by Costa Mesa to annex land.

But in the light of the bankruptcy, both city and county officials say they believe compromise is possible.

“I think there is more of a willingness to look at what can be done and what trade-offs can be made,” said Dave Kiff, an aide to Supervisor Marian Bergeson. “It’s something we favor looking at closely.”

Bergeson recently proposed a radical restructuring of county government that would require all unincorporated pockets to either join a city or incorporate by 1997. Bergeson’s Orange County-2001 plan also calls for cities to take over many municipal services now handled by the county.

Stephanie Mingura, an aide to Supervisor Jim Silva, noted that annexations might have the added benefit of unburdening the county from duplicating the same services provided by municipalities.

“If it would benefit all sides, sure we need to examine it,” Mingura said.

The interest in annexation is all the more significant because most unincorporated areas have traditionally fought to maintain their independence from neighboring cities. Residents cherish the rural flavor of their neighborhoods, with the oversized lots and streets without curbs, sidewalks or gutters.

But as the county moves to lay off workers and cut services, residents said they have no choice but to consider their options.

“We like our community the way it is,” said homeowner Shirley Bailey of Rossmoor, an upscale bedroom community of about 12,000, where residents recently embarked on a study comparing county services to those offered by the neighboring cities of Seal Beach and Los Alamitos. “But times have changed, and we have to be practical.”

Bailey and her neighbors worry that Sheriff’s Department patrols and other basic services will eventually be slashed, especially if a proposed half-cent sales tax increase is rejected by voters next month.

Residents of newer unincorporated tracts in South County have the added fear that the financial crisis will force long delays in the development of promised neighborhood amenities such as parks.

“We have a lot of land dedicated for youth and recreation areas. But we don’t know if the county will have the money to develop them and operate them,” said Greek, leader of the South County cityhood movement. “We’ve given our tax money, but we aren’t getting services in return like incorporated areas are.”

For cities, the bankruptcy provides a new opportunity to annex nearby land that, while in their governmental “sphere of influence,” is controlled by the county.

Costa Mesa and Newport Beach are examining county pockets in and around the Santa Ana Heights area, while Irvine will soon decide whether to move forward with plans to annex two pieces of undeveloped land at the north end of the city.

According to Irvine officials, the bankruptcy leaves cities in a better position than the county to process new residential and commercial developments.

Streets, parks, sewers and other infrastructure for new developments are funded from bonds issued by the government entity that controls the land.

In the past, either the city or the county could issue the bonds at roughly the same interest rate. But now, Irvine officials predict, the county will pay a higher interest rate to borrow money because of the bankruptcy.

“Developing through the city (now) has some added benefits,” said Robert Johnson, Irvine’s community development director.

It will take months and perhaps years to process all the proposed annexations. But many city leaders insist that the time lag won’t dampen enthusiasm for breaking with the county.

“This really make sense,” said Roeder, Costa Mesa’s city manager. “It would end a lot of inefficiency. . . . It’s good government.”