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THE CITY OF 12a 11131 " CITY COUNCIL AGENDA REPORT pLE ASANTON¢ February 16, 2016 Community Development Engineering TITLE: CONSIDER CITY POLICY FOR CONNECTION TO WATER AND SEWER SERVICES, WITH OR WITHOUT SIMULTANEOUS ANNEXATION, IN THE HAPPY VALLEY AREA SUMMARY On December 3, 2002, the City Council adopted a policy to allow any existing house or new house on an existing lot within the unincorporated Happy Valley area to connect to City water and sewer systems with or without also requiring annexation. In accordance with that policy directive, staff has been accepting and processing requests for connection to City utilities via pre-annexation and annexation agreements on a case-by- case basis. At the request of the Alameda County Local Agency Formation Commission (LAFCo), the Engineering Department is currently undertaking a study that will evaluate the feasibility and costs associated with extension of City water and sewer lines within Happy Valley. This study is expected to be completed in the summer of 2016. In light of this pending study, staff is seeking policy guidance from City Council on how to process requests for connections to City water and sewer utilities with or without simultaneous annexation prior to completion of the study. RECOMMENDATION Adopt resolution to establish an interim City policy to not accept requests for connections to water or sewer utilities until the comprehensive study of Happy Valley is complete and approved; excepting a request in response to an emergency as determined by the Director of Engineering, LAFCo's policies, and California law regarding an "existing or pending public health and safety threat." FINANCIAL STATEMENT No fiscal impact is expected as a result of this policy direction. Should the City Council direct staff to continue processing requests for connections to City water and sewer services with or without simultaneous annexation concurrently with the utility study, property owners would be required to pay all costs associated with extending the water and sewer system, including City, LAFCo, and other agency fees and permitting costs.