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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 feasibility and financial impact to extend water and sanitary services into the Happy Valley area of Alameda County. The City had RMC Engineering conduct the study (the Technical Memorandum Happy Valley Water& Sewer Study Nov. 2016) to determine how and at what cost City water and sanitary sewer services could be extended into the Happy Valley area so that every property could connect if desired, not just the properties 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 Alameda County. Alameda County has advised that funding is not available to construct the water and sanitary sewer extensions in Happy Valley as identified in the study. The City subsequently adopted a policy to allow Happy Valley properties within the City's urban growth boundary to apply for City water and sanitary sewer services on a case-by-case basis (see Res. 17-961). Following the final approval of the preannexation agreement by the City of Pleasanton, the property owner must petition LAFCo for approval of an out-of-area service agreement from LAFCo. The subject site at 6409 Alisal Street is located in Alameda County, but within Pleasanton's Happy Valley Specific Plan (HVSP) area. The site is currently occupied by a single-family residence, supported by an on-site well and septic system. The existing drain field of the septic system has failed. Instead of repairing the drain field, the property owner is requesting a connection to the City's sanitary sewer system. The existing well is currently functioning without issues. Nevertheless, the property owner also requests an approval for water connection when needed in the future. Such connections require a preannexation agreement to be recorded with the City. Site Description The subject property is approximately 40,075 square feet in size. The attached map 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. An existing City-owned sanitary sewer main is located along the east side of Alisal Street, to the east of the subject property. Preannexation and Provisions of Water Service and Sanitary Sewer Agreement Typically, when an owner of property located outside the city limits within the HVSP area requests City water and sanitary sewer services, the City would grant such a request only after determining the use on the property to be serviced would be consistent with the City's General Plan, that no subdivision of the property is proposed, and that the property owner will enter into a preannexation agreement. A preannexation agreement allows the property owner to connect to the City's water and sanitary sewer system prior to the property being annexed to the City, provided the property owner agrees to: a. pay water and sanitary sewer connection fees; Page 2 of 4