California Government Code Section 56133 states that LAFCo authorization is required for a city or district to provide new or extended services outside its jurisdictional boundary but within its sphere of influence. The extension of services must be "in anticipation of a later change of organization," with the goal that the newly-serviced property would consent to a later annexation into the city or district providing services. However, there is some ambiguity about whether a parcel that has been authorized by LAFCo to receive out of area service may later challenge the annexation of the parcel into the city or district service area.

The addition of Section 3.4 to the Project Policies would clarify the obligation to ensure timely annexation of parcels that receive out of area services by requiring an annexation agreement recorded on and running with the property. The agreement waives the owner's right to protest any future change of organization to annex the property by the agency which is serving it and states that LAFCo will not include a protest received by the property owner in its determination of whether protest thresholds have been met. The agreement form is provided as Attachment A.

The Yolo LAFCo Project Policies be amended to add a new Section 3.4 that shall read as follows:

3.4       ANNEXATION AGREEMENT
To ensure timely annexation of properties provided new or extended services outside a city or district’s jurisdictional boundary but within its sphere of influence in anticipation of a later change of organization as authorized by Government Code section 56133(b), subject property owners shall agree, as a Condition of Approval to the extension of services to their property, to the recording of an agreement running with the property that waives the landowner’s rights to protest any future change of organization that includes the annexation of the served property to the city or district providing out-of-jurisdiction services. If any protest from such landowners is received for the property receiving services, LAFCo will not include the protest in its determination of whether protest thresholds have been met as to any reorganization that includes the annexation of the property to the city or district.