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Four policy options are possible: (1) connect only when existing systems serving existing homes fail; (2) connect any existing house; (3) connect any existing house or new house on an existing, vacant lot; and (4) connect any existing house or new house on existing or newly subdivided lots. Staff can support any of the first three policies when coupled with requirements for pre-annexation agreements and such other requirements to ensure City land use and fiscal policies are followed. Honorable Mayor and Members of the City Council: BACKGROUND Request for City Water and Sewer Service The Council has established a general policy through previous decisions that water and sewer service should not be provided to new development located outside City limits but be provided to existing development outside the City only for health and safety reasons. The major exception to this policy has been to properties located within the former Pleasanton County Township Water District, for which the City is generally obligated to serve water, and to the Castlewood area, for which there is an agreement for sewer service. This policy has been incorporated into the current General Plan. Policy 12 of the Public Facilities Element states: "Policy 12: Require annexation to the City as a pre-requisite to utility extension. "Program 12.1: Encourage annexation of those parcels within the Pleasanton Sphere-of-Influence which are able and willing to pay for City services and utility extensions. " Pre-annexation and Provisions of Sanitary Sewer and Water Service Agreement Historically, when an owner of property located outside the City limits requests sewer and water services, 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 pre-annexation agreement. The pre-annexation agreement allows the owner to connect to the City's sewer and water systems prior to the property being annexed to the City providing the following requirement is met: The property owner agrees to (a) pay the sewer and water connection fees; (b) pay all costs associated with the connection to and use of the water and sewer systems; (c) abandon the existing septic SR:02:284 Revises SR 02:276 11/19102 Page 2 of 10