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seem unreasonable to put that condition in the resolution, stating that upon annexation the sewerage capacity would be there. In response to Council questions, City Attorney Schricker advised that the City did not represent to Pacific Shores or anyone else that these conditions were for the purpose of controlling the property. In point of fact the background of the resolution was that the Pacific Shores Center Limited representatives said they would annex to the City and needed the sewerage capacity for that purpose. The resolution was drafted in that context. After the resolution was written with the two conditions, Pacific Shores Center and perhaps Rohm and Haas have equivocated. That should be of some concern to the City Council. Obviously development of that land mass will have a considerable effect upon the City. One of the more major effects is the construction of ancillary facilities within the corporate limits of the City, facilities in Harbor Boulevard which would connect into the system which would go to the Pacific Shores property. To do that it might be necessary to create an assessment district because properties other than Pacific Shores may well be benefiting. To create an assessment district outside the City you need the County's approval, and there is no guarantee that would happen. Consequently you could have half of a construction project within Redwood City under your control from a utility standpoint and half of it outside under the control of the County. Therefore it seemed prudent to provide the annexation requirement from the utility standpoint. Additionally, a more salient point, particular facts were represented to the City at the time the application for transfer was made. However, when those facts were addressed in the resolution, the parties involved admitted that the facts might change. Under those circumstances it is entirely appropriate for the parties to come back to the Council with changed circumstances. The resolution was based on representations as made. The burden of changed facts or circumstances should be borne by the private parties and not by the City, and that was how the resolution was drafted. The Council could make the rights more transferable. The development was represented to require the entire 200,000 gallon capacity, but now the developer has equivocated on that issue. The resolution tries to eliminate those uncertainties and allow the Council to deal with them at a later time if the facts or circumstances change. In response to Council questions, City Attorney Schricker advised that when Horgan Ranch purchased sewerage capacity rights, the resolution consenting to the transfer also had the same annexation condition, as did all three previous transfers. MIS: STEINFELD! THE DECISION BE DEFERRED ON THIS UNTIL WE HAVE MORE INFORMATION FROM STAFF, AND UNTIL SUCH TIME AS THE BUYER AND SELLER GET TOGETHER WITH STAFF AND COME UP WITH SOMETHING THAT REASONABLY LAYS THINGS OUT IN A LOGICAL SENSE OF ORDER AND BALANCE. MOTION DIED FOR LACK OF A SECOND. MINUTE BOOK NO. 53 MINUTE ORDER NO. 95-190 Page No. 348 Regular Meeting Minutes September 25, 1995 Page 12