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BACKGROUND At its September 11, 2014 meeting, the Alameda Local Agency Formation Commission (LAFCo) considered approval of an OASA submitted by the City of Pleasanton to extend sewer and water services to 6723 Alisal Street (Hall property) located in the unincorporated Happy Valley area. As part of the discussion at that meeting, City staff informed LAFCo that the City had allowed many properties in the unincorporated Happy Valley area to connect to utilities over the years. LAFCo staff informed the Commission and the City that since 2001 the City should have been making applications to LAFCo for OASAs before properties outside the City limits were allowed to connect to City utilities. At the meeting LAFCo staff stated they could not recall any applications being made for properties in the Happy Valley area. The LAFCo board then approved Resolution 2014- 15 for the Hall property, but conditioned the approval on City staff researching how many properties in unincorporated Happy Valley are connected to City utilities and how many have OASAs in place. Over the next several months, City staff researched Council reports and utility billing records and determined that none of the connected properties had OASAs in place, and the situation was not limited to Happy Valley, but also included properties in the Remen Tract and unincorporated areas west of Foothill Road. In all, it has been discovered that 62 properties have connected to sewer and /or water since 2001 without LAFCo OASAs in place. Although the research on the subject was not exhaustive, the research did find the subject properties had received City Council approval for an out -of -area service connection and had paid the appropriate fees for utility connections, but for some unknown reason applications to LAFCo for OASAs had not be made for any of the properties. On May 28, 2015, City staff met with LAFCo staff and presented the results of the City research. On July 9, 2015, LAFCo staff presented the City's findings to the Commission. At the meeting the Commission stated that these connections must be brought into compliance with the law and be issued OASAs if /as appropriate. LAFCo staff queried the Commission whether the City should submit an application for each connection, one application for each area (Happy Valley, Remen Tract, and west of Foothill), or one application for all of the properties. The Commission stated that the City could submit one application for all of the properties already connected. The Commission also stated that all future connections must receive individual LAFCo OASAs prior to being allowed to connect to City utilities. DISCUSSION Since the July 9, 2015 LAFCo hearing, City staff has continued to refine the information gathered from utility billing records, and has met with LAFCo staff on January 5, 2016 and February 25, 2016, to discuss the City's draft application for an OASA to reconcile properties outside of the City's jurisdictional boundaries that already have service connections to City sewer and /or water services. The purpose of these meetings was to get LAFCo staff comments on the application package before submitting the final application. At this time City and LAFCo staff believe the application package to be ready for submission, the final item necessary being the Resolution adopted by the City Council authorizing staff to proceed with the application to LAFCo. It is recommended that City Council adopt the proposed Resolution authorizing staff to submit the application. Page 2 of 3