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BACKGROUND Marc and Deanna Fey are requesting City water and sewer service for their proposed residence located at 6511 Alisal Street located within the Happy Valley Specific Plan area. There is currently an existing residence on the property that is served by a septic system and well. This residence is located on a two (2) acre parcel outside the City limits (see Attachment 1 for map). The proposed plan is to demolish the existing house and build a new house served by City water and sewer. The new house will also be required to have fire sprinklers. In order to receive City services for a new residence, the City requires the applicant to have their proposed house reviewed by the City's Planning Division to ensure conformance with Happy Valley Specific Plan development standards and design guidelines. The Feys received approval from the City for their proposed house on October 23, 2009. The septic tank and leach field that are currently servicing the existing residence are marginally serviceable. There currently exists a City 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, which applies to this property. In order to eliminate reliance on the existing water well for domestic purposes, water service could be provided by connecting to the 12" water main installed on Alisal Street. Installation of this water line also included water service laterals specifically for future connections by property owners along Alisal Street. This parcel is within the Happy Valley Specific Plan (HVSP) area and this parcel is obligated to pay its pro rata share of the infrastructure cost associated with the recently installed infrastructure. Happy Valley Specific Plan (HVSP) The core sewer system that was 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 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 fee does not include costs for septic system Page 2 of 3