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was included within the Happy Valley Annexation Area, which was defeated by a vote of the affected property owners in April of this year. The property owner was planning a significant addition (approximately 1,500 square feet) to the existing house. Because the planned addition was so large, a special condition had been included in the required pre-annexation agreement that provides for the City's design review approval for this addition. Based on the pre-annexation agreement, the property owner was not able to obtain an Alameda County building permit without the City's approval of the house design. At its meeting of May 2, 2000, the City Council authorized the sewer and water connections requested by Mr. Yao with an agreement to annex at some future date as part of a larger annexation area. Mr. Yao was required to pay for sewer and water main laterals, including City connection fees. Future Sanitary Sewer Service Requests in the Happy Valley Area The sewer systems improvements required to serve the Golf Course and Golf Course housing can directly accommodate only a small number of additional lots in the outlying Greater Happy Valley area. This includes only those lots that happen to be located within the gravity flow area of the Golf Course sewer system alignment. Gravity flow sewer mains are to be constructed within Alisal Street from Sycamore Road to the lift station to be constructed opposite the Spotorno property. This section of gravity sewer, as well as water main, will be constructed by the City with laterals stubbed to each property along Alisal Street to avoid future trenching in the new pavement. Due primarily to local topography, most homes in Happy Valley will need additional mains to allow for connection. In order to serve the entire Happy Valley Specific Plan Area, six separate subarea systems will be required in addition to the Golf Course Properties. The general boundaries of these subareas and the overall conceptual sewer plan are identified in the Happy Valley Specific Plan and are summarized below. Each sewer service subarea has its own unique infrastructure requirements and resulting cost implications. In general, however, the overall allocation of costs is planned to take place as follows: • The City will construct and front the cost of constructing all off-site sewer facilities required for the Golf Course and Golf Course housing as well as gravity sewer mains in Alisal Street as described above. The owners of existing homes and the developers of new homes connecting to these facilities (including the Golf Course housing developers) are required to reimburse a pro rata share of the total cost of construction of this basic infrastructure to the City. SR:02:284 Revises SR 02:276 1 1/19/02 Page 6 of 10 •