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e. pay pro-rata share of future frontage improvements along the property if the County or City in the future undertake public street frontage improvements including, but not limited to, curb, gutter/stormdrain system, sidewalk, street lights, etc.); f. pay all City and County processing fees for LAFCo; g. obtain City design review approval for any future addition or alteration to the property requiring a building permit from the County; h. agree to not subdivide the property; and i. agree to support any subsequent annexation initiative that may occur. DISCUSSION The city boundary is located along the east side of Alisal Street, meaning that the subject parcel is not contiguous to the city boundary. The surrounding parcels to the south, west and northwest are also outside the city limits, and none of the adjoining parcels have connected to the city's water and/or sanitary sewer systems via preannexation agreements. As noted, the request for sewer connection is due to the failure of the existing on-site septic system. In discussion with the Alameda County Environmental Health Department, the applicant was informed that it is the County's preference for the issue to be addressed by connecting to the public sewer system, as opposed to repairing the existing drain field. Staff concurs that this approach is generally preferable from a public health perspective. The proposed preannexation agreement includes language requiring the property owner(s) to submit development plans for future additions to the residence to the City for review and approval prior to obtaining a building permit from Alameda County. A copy of the draft preannexation agreement is attached to this staff report. As a cautionary note, it is possible LAFCo will not approve individual applications for out-of-area service agreement as LAFCo's policy encourages annexation over out-of- area service agreements if the area is within a city's Sphere of Influence and can be efficiently serviced by the city. In addition, City staff will be meeting with LAVWMA staff to discuss provisions of the LAVWMA Joint Powers Agreement, and whether LAVWMA approval is required for such an out-of-area sewer service connection. A condition has been added to the Preannexation Agreement to address the situation if LAVWMA approval is required. Staff recommends the City Council support the sanitary sewer connection requested by the property owner with an agreement to annex into the city at a future date as part of annexation of a larger area. The extension of city services shall be subject to LAFCo approval (and, if needed, LAVMWA approval), and if the preannexation agreement is approved, the City will make those applications on the owners' behalf. Page 3 of 4