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Council on February 21, 2017. The study detailed the infrastructure improvements necessary and estimated the cost of those improvements at approximately $5.7 million. In March 2017 the study results were presented to and accepted by LAFCo Commissioners. In April 2017 the study results were presented to Alameda County Supervisor Nate Miley whose jurisdiction includes the unincorporated Happy Valley area. Supervisor Miley also serves as a LAFCo Commissioner so he had already seen the study, but as part of April discussion, Supervisor Miley was asked if extending the water and sewer services into the Happy Valley area was something the County of Alameda wished to pursue. Subsequently, a letter dated June 7, 2017 was received from Alameda County Administrator Susan S. Muranishi stating that the County of Alameda does not have financial resources available to extend the City water and sewer utility services into the unincorporated Happy Valley area. DISCUSSION Since the Happy Valley area is outside the Pleasanton City boundary limits and in unincorporated Alameda County, it is not appropriate for the City of Pleasanton to fund the extension of water and/or sewer utilities into the area. In addition, the City of Pleasanton does not have jurisdiction to provide water or sewer services outside the City boundary limits. In order to provide these utility services a property must either be annexed into the City by LAFCo (which changes the City boundaries to include the property), or the City must obtain an Out-of-Service Area Agreement (OSA) from LAFCo. However, since existing water wells in the area are failing, and there is a moratorium on the construction of new septic systems, some existing residents of the area desire connections to the City water and/or sewer services where available. In addition, when reviewing and approving proposed development in the area, the County of Alameda by Ordinance requires as a condition of approval that properties connect to a "public sewer system" if one is available within 200-feet of the development. The County of Alameda Ordinance makes no distinction regarding who owns or operates the "public sewer system." This Ordinance creates the circumstance whereby a development is approved through the County of Alameda Community Development process, but cannot move forward without City of Pleasanton and LAFCo approval of their connection to the sewer utility. As stated earlier the policy direction established by the City Council in 2002 was to consider requests to connect to water and sewer utilities in the Happy Valley area on a case-by-case basis. When the study was commissioned to take a comprehensive look at how to extend water and sewer utilities to all properties in the Happy Valley area the City Council appropriately adopted Resolution 16-828 directing that no further connections be considered until completion of the study. At this time, since the study is complete and the County of Alameda has indicated it is not financially feasible to construct the infrastructure as identified in the study, it is recommended that Resolution 16-828 be rescinded. In place of Resolution 16-828, staff recommends that the City Council adopt the resolution that provides a framework for how to apply a case-by-case approach to approval of water Page 3 of 4