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BACKGROUND Robin Boggs and Carmen Jung, residents of 753 Sycamore Road, are requesting that sewer service to be established to serve their existing residence located within the Happy Valley Specific Plan (HVSP) area outside of the City limits. The property owners are requesting approval from the County to remodel and expand the residence. To receive approval, the property owners are required to connect to the City sewer system and eliminate the use of their septic system. At this time, the applicant does not propose to connect to the City water system and plans to continue to use the existing well on the property. The septic tank and leach field servicing this parcel are not suitable for the proposed home expansion. Alameda County Department of Environmental Health restricts repairs or installation of septic systems when a sanitary sewer is within 200 feet of the property. There currently is an 8" sanitary sewer line along Sycamore Road installed as part of the Bridle Creek Development. This sewer main was installed for Bridle Creek homes and existing residences along Sycamore Road. Preannexation and Provisions of Sanitary Sewer Service Agreement When an owner of property located outside the City limits requests sewer service, the City has granted such 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 system prior to the property being annexed to the City providing the following requirements are met: The property owner agrees to (a) pay the sewer connection fees, (b) pay all costs associated with extending the sewer systems to serve this property, (c) pay all costs associated with the connection to and use of the sewer systems, (d) abandon the existing septic system on the property, (e) pay all City and County processing fees for LAFCo and LAVWMA approval, (f) support any subsequent annexation initiative that may occur; and (g) subject any modifications of the residence to City Design Review. DISCUSSION The City typically requires that properties annex to the City in order to receive City utility services. This parcel is contiguous to the City Limit boundary on one side and would require annexation of other parcels to allow for an annexation. However, some time in the future this parcel, along with surrounding parcels, could be part of a larger annexation. The proposed preannexation agreement includes language that requires the property owners to submit development plans for the planned addition to the City for review and approval prior to obtaining a building permit from Alameda County. A copy of the draft preannexation agreement is attached. At this time, staff recommends that the City Council authorize the sewer connection requested by the owner with an agreement to annex at some future date as part of a Page 2 of 3