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THE CITY OF "' CITY COUNCIL AGENDA REPORT PLEASANTON. April 19, 2016 Engineering TITLE: ADOPT A RESOLUTION AUTHORIZING STAFF TO SUBMIT AN OUT - OF -AREA SERVICE AGREEMENT APPLICATION TO LAFCO FOR RECONCILIATION OF PROPERTIES ALREADY CONNECTED TO CITY SEWER AND /OR WATER UTILITIES SUMMARY Since 2001 California state law has required that the City make application to the Alameda County Local Agency Formation Commission ( LAFCo) for an Out -of -Area Service Agreement (OASA) before connecting any property outside the city limits to sewer and /or water utilities. When making such application for an OASA to LAFCo at their meeting on September 11, 2014 for a property located in unincorporated Happy Valley, it was discovered that many properties within the Happy Valley area have been connected to the City utilities without the requisite LAFCo- approved OASA in place. Subsequent to the September 2014 LAFCo hearing, City staff researched utility billing records to determine when the connections were made. It was discovered many properties had connected post 2001, and that this issue was not confined to the Happy Valley area, but also included properties in the Remen Tract and in unincorporated areas west of Foothill Road. City staff presented these findings to LAFCo staff, who in turn took the information to the LAFCo Board. The LAFCo Board directed their staff to work with City staff to retroactively approve the connections made to date, and directed City staff to file the proper OASA applications before allowing any future water or sewer connections outside the City's service area. The City has actively worked with LAFCo staff to prepare the required application materials to retroactively process the OASAs for the properties already connected to city utilities. A total of 62 properties are part of the application. This reconciliation application requires that City Council adopt a resolution authorizing the application to be submitted to LAFCo. RECOMMENDATION Adopt a resolution approving the application for the OASA and authorizing staff to submit the application to LAFCo and allocating $10,500 from the City's General Fund Unallocated Reserve to cover the LAFCo fees. FINANCIAL STATEMENT The standard fee to submit an OASA is $3,500. LAFCo staff has determined the appropriate fee for the subject reconciliation application to be $10,500 (the standard $3,500 fee for each of the three distinct geographic areas — Happy Valley, Remen Tract, and west of Foothill). The $10,500 will be covered through an allocation from the City's General Fund Unallocated Reserve. 5