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BACKGROUND The subject site at 6723 Alisal Street is located in unincorporated Alameda County and is in the Happy Valley Specific Plan Area. The property is currently serviced by an existing well and septic system. The applicant is requesting a connection to the City's water and sanitary sewer systems in order provide a dependable water supply and to convey and treat wastewater from the expanded residence. The Alameda County Department of Environmental Health will not allow modifications to the existing septic system if a sanitary sewer main is available with 200 feet from the subject site. The applicant also proposes to retain an existing well, which would be used for irrigation purposes, and to remove the existing septic system. Happy Valley Area As part of the Callippe Preserve Golf Course development, an eight-inch sanitary sewer line was installed along Alisal Street, which included sewer laterals for potential future development along the street. The existing eight-inch line has sufficient capacity to convey wastewater from the subject site. If the request to connect to the City sanitary sewer system is approved, the applicant would be required to pay a share of the sewer infrastructure installation, sewer lateral, and sewer connection fees. An existing 12-inch water line was also installed along Alisal Street. If the request for connecting to the City water system is approved, the applicant would also be required to pay a share of the water infrastructure installed at time of connection, water lateral, water meter fee, and water connection fee. In addition, the applicant would be responsible for other costs associated with septic system abandonment, on-site plumbing, permits, and the LAFCo process. Preannexation and Provisions of Sanitary Sewer and Water Service Agreement Typically, when an owner of property located outside the City limits requests City sewer and water services, the City has granted such request only after determining that the use on the property to be serviced would be consistent with the City's General Plan and after receiving assurances that the property owner will enter into a preannexation agreement. In the case of the subject property, a preannexation agreement would allow the applicant to connect to the City's sewer and water systems prior to the property being annexed to the City, provided the applicant agrees to the following: a pay a pro-rata share of the sewer and water infrastructure installed in the Happy Valley Area by the City; a pay sewer and water connection fees; a pay water meter fees; a assume responsibility for the cost associated with abandonment of the existing septic system on the property; a pay all processing fees for LAFCo approval; and, o support any subsequent annexation initiative that may occur. Page 2 of 3