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177 yard Avenue west of Linden Way, owned by Will and Gladys Heinrich. Councilmember Mercer stated he opposed this annexation because of the adverse impact it would have on the rural atmosphere. He added that this one parcel would not significantly impact traffic on Vineyard Avenue and that im- provements to Pico Avenue will relieve congestion on Vineyard Avenue. Mayor Butler concurred with Councilmember Mercer, stating the desires of the affected residents have been heard, and he did not feel it would be in the best interests of the City to annex this property. He stated he did feel that Mr. Hirst should be allowed to make a further presentation regarding the matter. Mr. MacDonald advised that a 2-2 vote on the item would effect a denial of the request for annexation. Councilmember Wood withdrew his motion to initiate annexation proceedings on this property, and Councilmember Mohr withdrew her second. After further discussion, Mayor Butler declared the request for annexation at 3683 Vineyard Avenue (west of Linden Way) by Will and Gladys Heinrich, continued to the City Council meeting of August 10, 1982, for additional presentation by the attorney for Mr. and Mrs. Heinrich. Annexation Cost Study Mrs. Wagner presented her report (SR 82:272) dated July 20, 1982, regarding this matter. Mr. Walker added that one alternative means of determining cost should have been marginal cost, which would include only actual out of dollar expenses paid on a particular 50 acre annexation. The method used in the report allocated existing expenses included in the City budget to the newly annexed property. Councilmember Mercer's request was for a comparison of revenues generated to actualadded cost the City would incur as a result of annexing a 50 acre parcel. Councilmember Mercer stated the report did not answer the questions he had regarding annexation; how much revenue does property generate when it comes into the City, and how much does the City spend. He stated he was trying to prove that the reason the City annexes property is to gain control over the property, especi- ally when the property is vacant, rather than gain revenue. Councilmember Mohr stated that in view of the sewer constraints, an extended time should be considered. Mayor Butler stated that each Councilmember should make decisions regarding annexations when requests are received on the information available, and that the report has provided additional information that can be useful in making these decisions. Mrs. Wagner explained the cost of processing annexation applications, and re- quested that this fee, including County and State fees, be paid for by the appli- cant. It would also requre the applicant to provide the required legal description and map being completed by an outside engineer rather than being done by City staff. After discussion, it was moved by Councilmember Mohr, and seconded by Council- member Wood, that Resolution No. 82-274, requiring applicants for annexation pro- ceedings to prepare their own legal description and map of the property to be annexed and to pay County Recorder's fees and State Board of Equalization fees, be adopted. 6. 7/27/82