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water connection fees fora 5/8" meter ($21,090). This does not include septic system abandonment, on-site plumbing, permit fees, and LAFCo fees. Preannexation and Provisions of Sanitary Sewer and Water Service Agreement Historically, when an owner of property located outside the City limits requests sewer and water services, the City has granted such request only after determining that the use on the property to be serviced is consistent with the City's General Plan and after receiving assurances that the property owner will enter into a Preannexation agreement. This agreement allows the owner to connect to the City's sewer and water systems prior to the property being annexed to the City providing the following requirements are met: The property owner agrees to (a) pay the sewer and water connection fees, (b) pay all costs associated with extending the sewer and water systems to serve this property, (c) pay all costs associated with the connection to and use of the sewer and water systems, (d) abandon the existing septic system on the property, (e) pay all City and County processing fees for LAFCo approval, and (f) support any subsequent annexation initiative that may occur. DISCUSSION The City normally requires that properties annex to the City in order to receive City utility services. The Marks parcel is not contiguous to the City Limit boundary. However, some time in the future this parcel, along with surrounding parcels, could be part of a larger annexation. At this time, staff recommends that the City Council authorize the sewer connection and a future water connection, with an agreement to annex at some future date as part of a larger annexation area. Submitted by: Fiscal Review: Approve by: Nelson Fialho City Manager ~. Rob Wilson ~ David P. Culver Public Works Director Finance Director Attachments: 1. Vicinity Map 2. Preannexation Agreement Page 3 of 3