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The following conditions are included in the Preannexation Agreement: 1. Owner shall extend the water main on Linden Way from Vine Street. The sewer main will need to be extended south on Linden Way to Vine Street. The new water main and sewer main shall be subject to the review and approval of the City Engineer. 2. Owner shall pay the City the difference between the City and County development impact fees for a single-family residence. This applies to the new residence. The impact fees used to compare the difference between the City and the County consists of Park-in-Lieu, Public Facilities, Lower Income, and Traffic Impact (local fee). The current difference in fees is $15,000. DISCUSSION The City normally requires that properties annex to the City in order to receive City utility services. These parcels are contiguous to the City Limit boundary; however, it would require annexation of other parcels to make this a logical annexation. Should these parcels be included with a larger annexation, a number of issues would need to be addressed. The issue of annexing the Remen Tract goes back over 25 years with the first request for City utilities. As with other efforts to annex this area, the City has not yet reached a consensus with the residents regarding such issues as infrastructure costs, land use policies, and the willingness to be annexed into the City. Annexation of the Remen Tract will require a number of neighborhood meetings to address concerns of the residents. At this time, staff recommends authorizing the water and sewer connections for the proposed lots with an agreement to annex at some future date as part of a larger annexation area. The extension of City services shall be subject to LAFCo's approval. Submitted by: Fiscal Review: Approve by: ift/(I itQlSe-Brian Dolan mily Wagner Nelson Fialho Director of Director of Finance City Manager Community Development Attachments: 1. Preannexation Agreement Page 3 of 3