1996 AGN AUG 20 I05 - Laserfiche WebLink

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AGENDA REPORT For the Council Meeting of August 20, 1996 HONORABLE MAYOR AND CITY COUNCIL APPROVAL: MALIK FREEMAN, INTERIM CITY MANAGER FROM: THOMAS K. CLARKE, INTERIM WATER & WASTEWATER DIRECTOR ECT: APPROVAL OF REIMBURSEMENT AGREEMENT WITH HOOD CORP. FOR WATER MAIN EXTENSION DATE: AUGUST 6, 1996 BACKGROUND: The City of Riverside had been providing water service to Hood Corp., but .due to changes in State law, they can no longer provide water service across county lines without petitioning the Riverside and San Bemardino Counties Local Agency Formation Commissions (LAFCO) to approve the water services. The City of Riverside opted not to petition the two LAFCO's and informed Hood Corp. that they would cease providing water service to, their property. At the request of Hood Corp. the City of Colton approved the installation of water improvements to connect the Hood parcel to the City's water main. This service is being provided by the City because it is the closest possible provider. In many instances, service will cross territorial boundaries when it is more economical or more convenient to have another agency provide service. Due to the location of these parcels from their nearest water main, the City of Grand Terrace Riverside Highland Water Co. has approved the water service to three parcels by the City of Colton. If, and when, the other two parcels request water service, it may be in the best interest of the City to ask for annexation to the City of Colton. City of Colton will not be providing water service to any other Grand Terrace parcel since the Riverside Highland Water Company is able to service all of the areas located east of the railroad tracks. DISCUSSION/ANALYSIS: Prior to the construction of a water main extension project, a developer may request the City to approve a Reimbursement Agreement for water improvements. The Reimbursement Agreement is designed to offset the cost of the installation of water improvements which serve an area greater than the project being proposed. The cost difference between the improvements made for the project and the infrastructure requirements made by the City is reimbursed to the project's developer at the time that other projects connect to the installed water improvements. The water improvements made by Hood Corp. will now benefit the two other parcels located immediately south of Hood Corp., and the Hood Corp. has requested a Reimbursement Agreement for the water improvements made by them. ITEM NO. 5