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BACKGROUND In September 2014, the LAFCo Board of Commissioners voted to delay approval of out-of-area service agreements and requested the City to conduct a study to analyze the ability and financial impact to extend water and sanitary services into the Happy Valley Area of the County of Alameda. RMC Engineering conducted the study to determine how and at what cost City water and sanitary sewer service 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 relatively close to existing City water and sanitary sewer pipelines. The RMC study determined the cost to extend water and sanitary sewer is approximately $5.7 million. The study was presented to LAFCo and the County of Alameda. The County of Alameda has indicated funding is not available to construct the water and sanitary sewer extensions as identified in the study. The subject site at 622 Happy Valley Road is located in unincorporated Alameda County, but within Pleasanton's HVSP area. The site is currently occupied by several accessory structures. The property owner plans to construct a single-family residence and is requesting a connection to the City's water and sanitary sewer system. Site Description The subject property is approximately 3.5 acres in size. The map attached to this report (Attachment 3) shows the location of the subject property. The property is located within Alameda County, adjacent to City limits, and is within the City's Urban Growth Boundary and Sphere of Influence. Water and Sanitary Sewer Service Connections Water Service An existing City water line is available in front of the property on Happy Valley Road. If the request for connecting to the City water system is approved, the applicant would also be required to pay a pro-rata share of the water infrastructure installed at time of connection and the costs of the water lateral, water meter fee, and water connection fee. In addition, the applicant would be responsible for other costs associated with on-site plumbing, permits, and the application to LAFCo. Sanitary Sewer Service Currently, there isnot a sanitary sewer line available in front of the property on Happy Valley Road. Instead of connecting to the City sanitary sewer system, the property owner's first preference is to construct a septic system if allowed by the Department of Environmental Health (DEH). If allowed, the property would be serviced by a septic system for wastewater. If the property is annexed to the City in the future, the property owner would be required to connect to City sanitary sewer system and abandon the septic system. If a septic system is not allowed by DEH, the property owner then proposes to connect to the City sanitary sewer system, and thus a connection to the City sewer system is a part of the subject request. The applicant would construct the sewer system in conformance with the Happy Valley Study to the satisfaction of the City Engineer, and pay applicable fees.