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FINANCIAL STATEMENT <br /> The property owners would be required to pay all costs associated with extending the <br /> water and sewer system, including City, County, LAFCo, and other agency fees and <br /> permitting costs. <br /> BACKGROUND <br /> Arash Moradi, on behalf of Kamil and Nadereh Navai, property owners of the currently <br /> vacant parcel located on Sycamore Road (APN 949-0007-016-02), is requesting that <br /> water and sewer service be established to serve a planned residence located within the <br /> Happy Valley Specific Plan (HVSP) area outside of the City limits. The property owners <br /> have obtained approval from the County to subdivide the subject property into two lots, <br /> but the County has required that the applicant obtain a "will serve" letter from the City <br /> prior to recording the parcel map. In December 2002, the City Council unanimously <br /> passed a policy that the City would allow sewer and water connections to any existing, <br /> vacant, legal lot in unincorporated Happy Valley area. In accordance with this policy, the <br /> City would not provide connections to serve any vacant lot that is created through a <br /> subdivision. The subject property was identified as Lot 15, one single lot, by the HVSP, <br /> and thus the City would provide only one connection to the City's sewer and water <br /> systems. If the owners were to desire two connections, the project site would need to be <br /> annexed into the City. Given that the subject site is surrounded by unincorporated <br /> properties, staff would recommend the City Council consider annexation only if <br /> surrounding property owners were also interested in annexing to the City so that the <br /> annexation occurs in a logical and orderly fashion. At this time, the owners are <br /> requesting only one connection so that they may construct a new single-family <br /> residence, and thus would require a pre-annexation agreement. <br /> Site Description <br /> The subject property is approximately 4.9 acres in size (the subdivision approved by the <br /> County would create one parcel comprising 2.2 acres and one parcel comprising 2.7 <br /> acres). The map attached to this report (Attachment 3) shows the location of the subject <br /> property. The property is located within Alameda County and is adjacent to City limits, <br /> and is within the City's Urban Growth Boundary and Sphere of Influence. <br /> Sanitary Sewer and Water Service Connections <br /> There is an existing 8-inch sanitary sewer line and an 8-inch water line along Sycamore <br /> Road (within 200 feet of the property) that was installed by Greenbriar Homes to service <br /> the Bridle Creek development and residences along Sycamore Road (including the <br /> subject property). The HVSP requires that property owners benefitting from these <br /> sewer and water lines participate in pro-rata cost-sharing for these improvements to <br /> reimburse Greenbriar Homes. However, the reimbursement agreement has expired. <br /> Accordingly, the owners of the subject property are not required to pay their pro-rata <br /> cost to connect to the sewer and water lines but are required to pay a pro-rata cost to <br /> reimburse the City for other water infrastructure improvements that include a pump <br /> station, a reservoir tank and other appurtenances. <br /> A"will serve"letter is acknowledgement from the City to the County that the City will provide the specified utility <br /> service(in this case, water and sewer)to a specific property. <br /> Page 2 of 4 <br />