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THE CITY OF 10 pLEASANTON. CITY COUNCIL AGENDA REPORT July 18, 2017 Engineering TITLE: ADOPT A RESOLUTION RESCINDING RESOLUTION 16-828 (INTERIM POLICY) AND ALLOW PROPERTIES WITHIN THE UNINCORPORATED ALAMEDA COUNTY HAPPY VALLEY AREA TO APPLY FOR CITY WATER AND/OR SEWER SERVICES, AND STATING APPLICATIONS WILL BE CONSIDERED ON A CASE-BY-CASE BASIS USING FACTORS CONTAINED WITHIN THE RESOLUTION SUMMARY: On February 16, 2016, City Council adopted Resolution 16-828 suspending the practice that had been in place since 2002 that allowed property owners within the unincorporated Alameda County Happy Valley area to apply for City water and/or sewer service. Until the resolution all applications were processed on a case-by-case basis whereby properties that happened to be close to City utilities could connect provided they complied with several conditions of approval, including payment of all fees. Council adopted Resolution 18-828 because at the same meeting they awarded a contract to RMC Engineering to determine how and at what cost City utilities could be extended into the Happy Valley area so every property could connect if desired, not just the properties along the edges of the area that are relatively close to existing City utility pipelines. The RMC study is now complete and the results have been presented to the Local Agency Formation Commission (LAFCo) and the County of Alameda. The study determined the cost to extend the utilities is approximately $5.7 million. The County of Alameda has indicated that funding is not available to construct the utilities as identified in the study. At this time it is recommended that the City Council adopt a resolution that rescinds Resolution 18-828 and again allows applications to be considered on a case-by-case basis, with a provision that allows the City Engineer to utilize the RMC study as a guideline for how to extend utilities and require applicants to construct components of the system if/when applicable as part of their conditional approval. RECOMMENDATION Adopt a resolution rescinding Resolution 16-828 (interim policy) and allow properties within the unincorporated Alameda County Happy Valley area to apply for city water and/or sewer services, and stating applications will be considered on a case-by-case basis using factors contained within the resolution. FINANCIAL STATEMENT There is no City fiscal impact as a result of adopting this resolution.