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Annexation No. 2018-01 for the County Island Annexation at Seventeenth Street and Tustin Avenue September 3, 2019 Page 4 The Cooperative Agreement will also acknowledge the County's processing of two development projects within the County Island. For the past two years, Chick-Fil-A and In-N-Out Burgers have been processing separate projects with the County, with both projects now ready to enter building plan check. However, both have elected to delay their plan check submittals until the annexation is processed, which will give the developers assurances that their projects will obtain sewer service, which can only be provided once the property is annexed to the City. Approval of this agreement will allow the projects to complete the development process with the County, with both projects reverting to Santa Ana once certificate of occupancies are issued, which is anticipated to occur in approximately 12-18 months. In conjunction with the City's CEQA determination regarding the annexation, the County of Orange is processing a negative declaration (ND) for the two developments. The ND will identify any potential impacts to the environment and identify mitigation measures to reduce or eliminate the impacts. The lead agency for the ND is the County of Orange. General Plan Amendment and Amendment Application Section 41-188 of the Santa Ana Municipal Code (SAMC) allows the City to prezone land that is intended to be annexed to the City. Further, Chapter 27 of the SAMC identifies the process for general plan amendments. In the event the City did not predesignate the annexation area, the SAMC states that these properties would be designated as General Agriculture (A-1). In order to ensure consistency between the zoning and general plan land use designations within the annexation area, and avoid making each property within the annexation nonconforming, staff brought forward a zone change and general plan amendment actions to the Planning Commission. On December 10, 2018, the proposed actions were presented to the Planning Commission for consideration. At this hearing, staff provided background on the proposed actions as well as provided information on the fiscal impact of the proposed annexation. At the conclusion of the meeting, the Planning Commission unanimously recommended that the City Council move forward with the annexation and recommended that the City Council approve the general plan amendment and amendment application. The Commission's approval will establish the future General Plan land use and zoning designations for the properties once the annexation becomes effective. Further, the zoning and general plan amendment actions will be consistent with the existing land uses of the parcels, minimizing the potential for creating non -conforming parcels. Water Service Agreement The City of Tustin currently maintains and operates water lines and facilities that provide potable water service to all developed parcels within the unincorporated island. The City of Santa Ana and the City of Tustin will enter into a water agreement that will allow Tustin to provide water services to the developed and undeveloped parcels located within the unincorporated island upon annexation. Currently, Santa Ana does not have any water infrastructure within the unincorporated island. The agreement will allow Tustin to provide potable water service within the annexation area boundaries until such time Santa Ana installs the infrastructure to provide potable water service. As of this date, it is uncertain when Santa Ana will be able to provide water service to the County island. 75C-4