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RECOMMENDATION: Receive the report and provide comments, and direct staff to <br />share the final report with the County of Alameda and LAFCo for review and discussion, <br />and possibly development of next steps. <br />FINANCIAL STATEMENT: The cost to complete the study was $31,546. There is no <br />further financial impact associated with this report. Staff will invoice the County of <br />Alameda for its pro -rate share of the study cost, approximately 50 %. <br />BACKGROUND: On December 3, 2002, the City Council established a policy that <br />applications to connect to City water and /or sewer from properties in the unincorporated <br />Happy Valley Area would be considered on a case -by -case basis. On August 14, 2014, <br />the City Council considered a request by the property owners of 6723 Alisal Road to <br />connect to City water and sewer services. In accordance with 2002 policy, Council <br />approved the connections contingent upon the property owner agreeing to the following: <br />1. Enter a pre- annexation agreement stating they would support any subsequent <br />annexation initiative that may occur in the area; <br />2. Pay a pro -rata share of the water and sewer infrastructure installed in the Happy <br />Valley area to serve the Golf Course and Golf Course housing development; <br />3. Pay sewer and water connection fees (DSRSD, Zone 7 and City); <br />4. Pay City water meter fees; <br />5. Assume responsibility for the cost associated with abandonment of the existing <br />water well and septic system on the property; and, <br />6. Pay all processing fees for the LAFCo required Out of Service Area (OSA) <br />approval. <br />(Note: The property located at 6723 Alisal Road is in unincorporated Alameda County, <br />but has frontage directly on the City -owned Alisal Road in which City water and sewer <br />utilities were installed to serve the Golf Course and Golf Course housing development. <br />Connecting to the City utilities is relatively easy for 6723 Alisal Road because the utilities <br />are readily available in the adjacent street. The same is not true for many properties <br />within the Happy Valley interior areas. In most cases in the Happy Valley Area <br />connections would require the public water and sewer utilities to be extended from the <br />City mains in Sycamore Road and Alisal Road.) <br />On September 11, 2014, LAFCo considered the required OSA Agreement allowing the <br />City to serve the property at 6723 Alisal with water and sewer services. The request was <br />made and presented by City Staff on behalf of the property owner as required by LAFCo. <br />After much discussion by the LAFCo Commissioners about well water problems in the <br />Happy Valley Area, and the existing County- imposed moratorium on constructing new <br />sewer septic systems in the area, LAFCo approved the OSA for 6723 Alisal. However a <br />condition of approval imposed by LAFCo on the 6723 Alisal OSA required the City of <br />Pleasanton to perform a comprehensive study to determine how water and sewer service <br />could be provided to every property within the unincorporated Happy Valley Area. <br />Page 2 of 7 <br />