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BACKGROUND In the mid-1980s, the Livermore Amador Valley Waste Management Authority(LAVWMA) and Dublin San Ramon Services District (DSRSD) sought the expansion of regional wastewater treatment facilities and the wastewater export transmission main. To contrib- ute towards the capital funding of the expansion projects, the City of Pleasanton estab- lished an Advance Sewer Sale program (Res. 85-590) whereby property owners could pay for sewer capacity in advance of development of their property, which helped pay for the sewer expansion projects. In 1986, the Lund family were one of many property owners which participated in the Advance Sewer Sale program. The Lunds purchased sewer capacity for 100 residential units for their two parcels in South Pleasanton at a cost of$250,000. DSRSD and the City have granted various advance sale sewer permits and/or Regional Wastewater Capacity Reserve Fee credits for sewer capacity in previous years. However, the amount of these credits to the Regional Wastewater Capacity Reserve Fee program is not clearly discernable, due to previous documentation systems. The financial impact of these credits has not been reflected in the three most recent Regional Sewer Capacity Reserve Fee Studies because the actual credits are unknown. And, the financial effect of these credits generally may not be reallocated from development occurring prior to 2016 to new development occurring after 2017. However, certain Regional Wastewater Capacity Reserve Fee Credits have been recognized in a separate "Agreement Between the City of Pleasanton and DSRSD Regarding Advance Sale Sewer Permits" in the amount of$1,053,430. On July 21, 2015, the Council adopted Resolution 15-774 to allow the Lund family to transfer 50 of the 100 sewer connections from the 1986 advance-sale to third parties subject to approval by DSRSD. In September of 2015, the Lund family contacted DSRSD to inquire about transferring 50 sewer credits to another parcel, however DSRSD was not in a position to recognize the transfer of these sewer credits to another parcel without discussing the matter with its Finance Committee. At DSRSD's November 17, 2015 Finance Committee meeting, the Lund Family's request was considered and the Committee agreed that development on the original Lund parcels would receive 501 Regional Wastewater Capacity Reserve Fee credits, because these credits were in conformance with the details of the original Advance Sale program and permit. The Finance Committee also agreed to consider the matter of selling and transferring the remaining 50 Regional Wastewater Capacity Reserve fee credits to another site. Subsequently, in early 2016 the City requested that this matter be discussed at a liaison meeting between the City and DSRSD. At the February 1, 2016 meeting between the Pleasanton Liaison Committee and the DSRSD External Affairs Committee, the possibil- ity of a compromise resolution on the sale and transfer of credits was discussed. Since ' The Lund Ranch II project has been approved for 43 single family homes. Therefore, there will be an additional 7 sewer connections available for the site (for example, for second units, or pool houses with cooking areas and a bathroom). Page 2 of 4