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BACKGROUND Tom and Barbara Daggett are requesting City water and sewer services for their existing residence located at 6034 Alisal Street located within the Happy Valley Specific Plan area. This residence is located on a one (1) acre parcel outside the City limits (see attached map). The septic tank and leach field that is marginally serviceable at this time currently serves the existing residence. There currently exists an 8" sanitary sewer line along Alisal Street installed as part of the Golf Course infrastructure. Installation of this sewer main included sewer laterals for properties along Alisal Street for future use. The Alameda County Department of Environmental Health restricts repairs or installation of septic systems when a sanitary sewer is within 200 feet of the property. In order to eliminate reliance on well water, water service could be provided by connection to the 12" water main installed on Alisal Street. Installation of this water line also included water service laterals for properties along Alisal Sreet. This parcel is within the Happy Valley Specific Plan (HVSP) area and this parcel is obligated to pay a share of the infrastructure cost associated with the infrastructure recently installed. Happy Valley Specific Plan (HVSP) The core sewer system installed consists of a sewer lift station, 8" gravity sewer main, and a 4" sewer force main. The portion of the core water system charged to an existing residence includes a 12" water main, water booster pump station and storage reservoir. This system was designed for existing and future homes within the HVSP. The Specific Plan specifies that parcels located in this area are subject to a share of the cost, since the improvements installed do benefit these properties. The total cost for sewer for an existing residence is $25,418. This amount includes a pro -rata share of the core sewer system, sewer lateral, and sewer connection fees for both DSRSD and the City. This does not include septic system abandonment, on -site plumbing, permit fees, and LAFCo fees. The current cost for this residence to connect to the water system is $13,802. This amount includes a pro -rata share of the overall water system, the water lateral, and 5/8" water meter connection fee for the City. The Zone 7 connection fee has been prepaid. Preannexation and Provisions of Sanitary Sewer and Water Service Agreement Historically, when an owner of property located outside the City limits requests sewer and water services, the City has granted such a request only after determining that the use on the property to be serviced is consistent with the City's General Plan and after receiving assurances that the property owner will enter into a preannexation agreement. This agreement allows the owner to connect to the City's sewer and water systems prior to the property being annexed to the City providing the following requirements are met: Page 2 of 3