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10/13/2006 10:44 12090339442 PEOPLE OF CHRIST CHU PAGE 0'Z June 7. 2005 AGENDA ITEM 14.0 RE U ST CITY COUNCIL DIRECTION REGARDING THE PROVISION OF WATER SERVICE TO VACANT PROPERTIES IN THE LARCH CLOVER AREA DISCUSSION At the City Council meeting of April 19, 2005, $Jeff requested direction regarding future annexation requests in the Larch Clover area, and direction was provided by City Council. The staff report mentions that there was a continuing issue in the Larch Clover area regarding provision of water service to vacant properties in the area. As a part of the district formation to implement sewer Improvements, the City committed to provide water (One Equivalent Consumer Unit or ECU) upon payment of fees to vacant parcels upon annexation The failure of the annexation application and the delay of the construction of the sewer line left this commitment unresolved There are two proposed assembly uses that want to proceed with construction. Staff is aware that one of the proposed assembly uses proceeded to prepare construction documents based on the assumption that the annexation would be successful, a twill serve' letter provided by the City (subsequently revoked after the failure of the annexation), and that the sewer system would be installed this year. On April 19, staff reported that the County Is not currently allowing the use of septic systems in the area but that the County was reviewing the potential of allowing temporary sewer solutions. It is staffs understanding that the County is now amenable to allowing temporary sewer systems. There is an existing agreement between the City and the County dating back to 1986 regarding the provision of water to the Larch Clover area That agreement generally specifies that water service will be provided only for residential uses in existence at the time the agreement was entered into, i.e. not new uses. At the April 19 meeting, City Council indicated an interest in considering a policy change that would allow the provision of water to vacant properties in the Larch Clover area, possibly on a case-by-case basis, if the County would allow temporary sewer systems and it an amendment to the existing agreement was not necessary. Staff has developed criteria for all the vacant parcels. There are 30 vacant parcels in the Larch Clover area. There is not an existing water line in proximity to parcels west of Corral Hollow Road on Larch Road so the number of potential new users is limited. Previous policy direction has been not to provide water to unincorporated areas, and staff has consistently recommended not changing the policy. However, City Council can change the policy if it chooses. If City Council chooses to allow the provision of water to vacant parcels in the Larch Clover area, staff is recommending the provision of water be subject to the following criteria: