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ITEM #15 <br />CITY OF COLTON <br />AGENDA REPORT <br />FOR COUNCIL MEETING OF OCTOBER 2, 2007 <br />TO: HONORABLE MAYOR AND CITY COUNCIL <br />FROM: Eric Fraser, Director of Water/Waste-Water <br />SUBJECT: Approval of First Amendment to Agreement for Future <br />Annexation Between the City of Colton and 105 Cypress <br />Association, LLC, for Connection to the City's Sewer System <br />and Granting of Authorization to Enter into Reimbursement <br />Agreement <br />DATE: October 2, 2007 <br />BACKGROUND: <br />City policy provides that in order to supply water or sewer service to an unincorporated <br />area, the property owner must agree to future annexation of the property into the City. <br />Pursuant to this policy the City entered into an Agreement for Future Annexation <br />("Agreement") with 105 Cypress Association, LLC ("Developer") on April 30, 2002. Under <br />the Agreement the City would consider, at some future date, annexing three properties <br />located at 105 Cypress Avenue, in an unincorporated area of San Bernardino County. <br />The Developer would now like to move forward with the annexation process. However, <br />after the Agreement was executed the Developer merged the three properties into one <br />property. LAFCO has refused to process the annexation until the Agreement is amended <br />to reflect that the three properties have been merged into one. The attached First <br />Amendment amends the property description to reflect the merger. Additionally, the <br />attached Reimbursement Agreement would require the Developer to reimburse the City <br />for all costs incurred during the annexation process. <br />DISCUSSION/ANALYSIS: <br />The City entered into an Agreement with the Developer on April 30, 2002, providing for <br />the future annexation of three properties located at 105 Cypress Avenue, San Bernardino <br />County. The annexation would allow the Developer to connect his properties to the City's <br />sewer system. After the execution of the Agreement the Developer merged the three <br />properties into one property. <br />Recently the Developer attempted to follow through with the annexation of his property. <br />However, LAFCO informed the Developer that they would not process the annexation <br />