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FINANCIAL STATEMENT The property owners would be required to pay all costs associated with extending the water and sewer system, including City, County, LAFCo, and other agency fees and permitting costs. BACKGROUND Robin Boggs and Carmen Jung, residents of 753 Sycamore Road, are requesting that water and sewer service 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 County requires that the property owners connect to the City sewer system and eliminate the use of their septic system. At this time, the property owners plan to continue to use the existing well on the property, but are requesting approval for a future connection to the City water system. Securing a connection to the City water system is desirable because the aquifer underlying Happy Valley has been affected by nitrate contamination. Site Description The subject property is approximately 18,410 square feet in size. The map attached to this report (Attachment 3) shows the location of the subject property. The property is located within Alameda County and is adjacent to City limits, and is within the City's Urban Growth Boundary and Sphere of Influence. Sanitary Sewer and Water Service Connections The Alameda County Department of Environmental Health (DEH) requires properties with failed or inadequate septic tanks to connect to City sewer when the property is within 200 feet of a sewer line. DEH has determined that the septic tank and leach field servicing this parcel are not adequate for the proposed home expansion. There is an existing 8-inch sanitary sewer line and an 8-inch water line along Sycamore Road (within 200 feet of the property) that was installed by Greenbriar Homes to service the Bridle Creek development, and to service existing residences along Sycamore Road (including the subject property). The HVSP provides that property owners benefitting from these sewer and water lines would be required to participate in pro-rata cost- sharing for these improvements to reimburse Greenbriar Homes. The reimbursement agreement has expired. Accordingly, the owners of the subject property are not required to pay their pro-rata cost to connect to the sewer and water lines; however, they are required to pay their pro-rata cost to connect to the water line to reimburse the City for other water infrastructure improvements that include a pump station, a reservoir tank and other appurtenances. The current (2015) share of the water infrastructure cost for of an existing residence to connect to the water system is $14,989. This amount includes a pro-rata share of the water system and water lateral. These fees do not include Zone 7 water connection fees, City meter or connection fees, permit fees, and LAFCo fees. Page 2 of 4