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payment of sewer and water connection fees; (b) payment of all costs associated with <br /> extending the sewer and water systems to serve the property; (c) payment of all costs <br /> associated with the connection to and use of the sewer and water systems; (d) <br /> abandonment of any existing septic system on the property; (e) payment of all City and <br /> County processing fees for the LAFCo Out-of-Area Service request, (f) payment of all <br /> City and County processing fees for Livermore-Amador Water Management Agency <br /> (LAVWMA) approval;2 (g) agreement to support any subsequent annexation initiative <br /> that may occur; and (h) agreement to be subject to City design review and approval of <br /> new or modified residences. <br /> On August 19, 2014, the City Council authorized staff to proceed with an application to <br /> LAFCo to provide water and sewer services for the Hall property located at 6723 Alisal <br /> Street. LAFCo reviewed this request at its September 11, 2014 meeting, and authorized <br /> the Out-of-Area Service request, subject to conditions. One of the conditions requires <br /> the City, in consultation with Alameda County, to complete a comprehensive study <br /> regarding providing water and sewer services to unincorporated Happy Valley area <br /> properties. The City committed to completing the utility study in 2016. The Engineering <br /> Department is hiring a consultant to assist with the study and expects it to be complete <br /> by summer of 2016. <br /> DISCUSSION <br /> Since the September 11, 2014 LAFCo meeting date, the City has received and <br /> processed two requests for water and/or sewer connections (Boggs-Jung property <br /> located at 753 Sycamore Road and the Navai property (a vacant property located on <br /> Sycamore Road), and one request for annexation (Linfoot-Marks-Mix properties at <br /> 6300, 6352, and 6360 Alisal Street, respectively). The Out-of-Area Service agreements <br /> for the Boggs/Jung and Navai properties were approved by LAFCo at its January 14, <br /> 2016 meeting. The annexation request is pending provided the applicant secures <br /> approval from the County surveyor and the Board of Supervisors approves a tax sharing <br /> agreement. <br /> At its January 14, 2016 meeting, LAFCo also requested the City provide an update on <br /> the water and sewer study since some members felt the requests for City services were <br /> being considered in a piecemeal fashion, and the study would provide an opportunity to <br /> evaluate the feasibility of comprehensively extending City utility services into Happy <br /> Valley, as well as address more broadly annexation of the entire Happy Valley. <br /> Most recently, the City has received a request to connect to City water and sewer <br /> services from the new property owner of 622 Happy Valley Road. The owner has <br /> indicated that he would like to construct a new home on the property. In light of <br /> LAFCo's directive to complete a study regarding utility connections in Happy Valley, the <br /> desire to avoid piecemeal connections, and the City continuing to receive such <br /> requests, staff seeks policy direction from the City Council. Two options are proposed <br /> 'The City's agreement with LAVWMA requires LAVWMA's approval when connections outside of the <br /> City's boundaries exceed ten. City staff and LAVWMA staff are resolving how to treat individual <br /> connections when the total number of connections already previously approved exceeds ten. <br /> Page 3 of 5 <br />