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regarding how to process utility connection requests while the Happy Valley utility study <br /> is being completed: <br /> Option 1: Establish an interim city policy to not accept applications for pre-annexation <br /> and annexations in Happy Valley until the water and sewer study is complete and <br /> reviewed by the City Council. New applications would be accepted when this interim <br /> policy is revised by the City Council. <br /> Option 1 would involve delaying the processing of any new annexation or pre- <br /> annexation agreements until the study is complete, unless the request is in response to <br /> an emergency as determined by the Director of Engineering, LAFCo's policies, and <br /> California law regarding an "existing or pending public health and safety threat".3 This <br /> would allow a comprehensive evaluation of the existing and needed infrastructure in <br /> Happy Valley to serve all properties, and would also avoid reviewing requests <br /> piecemeal. It would also allow the Director of Engineering to accept a request for <br /> connection to City water and/or sewer if it were to be determined that the request was in <br /> response to an emergency (e.g. failing septic system or contaminated water supply). <br /> Allowing individual property owners to connect one by one will eventually mean that the <br /> cost of any needed infrastructure will be shouldered by a smaller group of people (those <br /> who have not yet been connected to City services). Requiring that the study be <br /> completed before any further connections are approved would mean that the ultimate <br /> costs of utility extensions are assumed by a larger number of affected residents, <br /> reducing the cost of connection per property, and would also ensure that the installation <br /> of infrastructure keeps pace with development. <br /> Once the study is complete, staff plans to present its findings to the City Council and <br /> LAFCo. When the study is presented to City Council, staff will make a recommendation <br /> to as to how the policy could be updated: either revert to a case-by-case basis or a <br /> proposal that includes how to fund and construct the extended sewer and water <br /> services to make these services available to every property within Happy Valley. <br /> Under Option 1, formal applications for annexation or pre-annexation already accepted <br /> by the City would be processed, but no new annexation or pre-annexation applications <br /> for properties in Happy Valley would be accepted until completion of the comprehensive <br /> study (the City would continue to accept requests for connections outside of Happy <br /> Valley). A draft resolution is included as Attachment 1 should the City Council wish to <br /> adopt this option. <br /> Option 2: Accept applications for preannexation and annexations in Happy Valley and <br /> elsewhere in the city for water and/or sewer connections to any existing house or new <br /> house on an existing lot, even while the water and sewer study is pending. <br /> 'Any utility connection provided to unincorporated property requires LAFCo approval after finding such a <br /> health and safety emergency. (See Government Code§56133(c).) This has generally been found to be <br /> present in Happy Valley due to the existing nitrate contamination in the ground water and the County of <br /> Alameda's existing moratorium on new septic systems. <br /> Page 4 of 5 <br />