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FINANCIAL STATEMENT No fiscal impact is expected from this interim policy. The cost associated with the study will be considered as a separate item in the future when the scope of work is defined, and a consultant selected if needed. BACKGROUND The Remen Tract is an approximately 22-acre unincorporated island surrounded by the city limits. The Remen Tract consists of 48 parcels generally bounded by the Arroyo Del Valle to the north, Bernal Avenue to the east, Vineyard Avenue to the south, and Wild Flower Lane to the west. Discussion regarding the annexation of the Remen Tract has occurred periodically in the past, dating all the way back to the 1970s. The most recent discussion occurred at a community meeting hosted by LAFCo on May 31, 2017. At the meeting, those in attendance (mostly area property owners and residents) were asked if they supported annexation. Consistent with past discussions, the community members in attendance at the May 2017 meeting articulated their interest in continuing their more rural lifestyle (e.g. gravel roads, no sidewalks, etc.) and the majority did not support annexation. They were also asked if they would be interested in understanding what infrastructure improvements the City would require for annexation, and what the cost of those improvements would be. Generally speaking, most people were not interested in such a study. But in the discussion it was clear that LAFCo staff felt such a study was important to the potential annexation question. Over the years, the City has accepted and processed requests for sewer and/or water services from property owners in the unincorporated Remen Tract. The processing followed much the same procedure as is followed for properties within the City's jurisdictional boundaries, e.g. the existing systems are evaluated to determine their ability to serve the property or if upgrades are necessary to serve the property, if upgrades are determined necessary the applicant is responsible for the cost of the upgrades, the applicant is required to pay all fees and costs, etc. The additional step for properties in the County is to execute a pre-annexation agreement whereby the property owner receiving the services agrees that if at a future date annexation were to be considered they would support the proposed annexation. The final step should be for the City to seek an OASA from LAFCo on behalf of each applicant. The OASA permits the City to provide water and/or sewer service to a property outside its jurisdictional boundaries. Applying to LAFCo for an OASA before serving properties outside the City boundaries has been required by State Law since 2001. Unfortunately the final step of seeking an OASA from LAFCo before allowing connections was not accomplished for the 19 connections when they occurred. Since the City staff members that processed these connections have now retired, it is difficult to determine exactly why they did not seek OASAs from LAFCo. However an explanation could be that since the Remen Tract properties are located within what was once called the Pleasanton Township County Water District, and the water district was dissolved in 1973 resulting in the City taking on the responsibilities previously provided by the district, prior City staff could have been Page 2 of 4