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Richard Laiblin <br />ANALYSIS OF FINANCIAL <br />CALCULATION WORKSHEET <br />FOR AIRPORT ~~EXATION <br />EXISTING AGREE!'>ENTS <br />-2- <br />On Page 2, section B of the Annexation Administrative Guidelines, <br />it states that "annexation fees shall not be required for: existing <br />agreements such as those for the California Youth Authority and the <br />San Joaquin County Airport, Hospital and Jail."· This seems to support <br />our previous contention that because the County and City jointly <br />constructed a collection system to accommodate the Airport site, only <br />the normal fee for treatment should be applicable .. <br />The Airport Agreement for sanitary sewer service (May 6, 1975, amended <br />May 9, 1978) provides for 1.3 million gallons a day service from the <br />Airport property. If anything, the annexation fee should apply only <br />when the 1.3 million gallons a day has been exceeded. The legal <br />··description for the Agreement describes the entire Airport property, <br />including the approach area east of State Highway Route 99. <br />CONCLUSION RECOMMENDATION <br />There appears to be a number of discrepancies among the Airport <br />Sanitary sewer Agreements, the City "Annexation Administrative <br />Guidelines", and the correspondence from the City. The City should <br />answer the following questions: <br />1. · Why would the full connection fee apply to the Airport and not to <br />other property annexed to the CFD? <br />2. If the Airport pays the present value of the special tax, could <br />reimbursements be made based on reduced taxes in the future? The <br />tax (if applicable) could be levied by agreement if the property <br />is not annexed. <br />3. The City has not recognized.its prior obligation under the <br />existing Sanitary Sewer Agreement with the Airport. If the City <br />has used or plans to use this capacity for its 0\•m benefit; does <br />the City have alternative provisions for service to meet the <br />terms of the Agreement? <br />Also, the Airport should determine what its current flow into the <br />sanitary sewer is and then decide on how it will allocate the <br />:remaining 1.3 million gallons a day flow allocated in the existing <br />Agreement with the City (future Airport expansion, air metropolitan <br />industrial park, other development on Airport property) . <br />Attached for your files is a copy of the "Annexation <br />Guidelines" for community Facilities District 90-1. <br />questions, please call me at extension 8-3101. <br />l'>L: CK: lt <br />H·StD,.Cl <br />Attachment <br />c: Charles Kelley, Associate Civil Engineer <br />Administrative <br />If you have any