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BACKGROUND In the Happy Valley area of southern Pleasanton, some properties are within the City limits, and other properties remain in unincorporated Alameda County. The City provides municipal water and sewer services to properties within the City limits. Properties in unincorporated Alameda County typically have private water wells and private septic systems. However, due to the Alameda County Department of Public Health's concerns about high nitrate concentrations from private septic systems and livestock contaminating groundwater, the Alameda County Department of Environmental Health (ACDEH) does not permit new septic systems in unincorporated Happy Valley area. Rather, the ACDEH encourages owners of property in unincorporated Happy Valley to connect to City water and sewer services. This can be done by an out-of-area service agreement approved by the City, the Alameda County Local Agency Formation Commission (LAFCo) and Livermore-Amador Valley Water Management Agency (LAVWMA). In September 2014, the LAFCo Board of Commissioners voted to delay approval of such out-of-area service agreements and requested that the City conduct a study to analyze the feasibility and financial impact to extend water and sanitary services throughout the entire 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 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 (in 2014) to extend water and sanitary sewer would be 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 to properties in unincorporated Happy Valley as identified in the study. The City subsequently adopted a policy to allow properties within the unincorporated areas of Happy Valley that are within the City's urban growth boundary to apply for City water and sanitary sewer connections on a case-by-case basis [see City Council Resolution No. 17-961 (Res. 17-961), provided as Attachment 2]. If pursuant to Res. 17-961 the City approves a preannexation agreement, the property owner must still petition LAFCo for approval of an out-of-area service agreement, as well as obtain consent of LAVWMA. The subject site at 871 Sycamore Road is located in unincorporated Alameda County, but within Pleasanton's Happy Valley Specific Plan (HVSP) urban growth boundary area (see Figure 1). The site is currently occupied by a single-family residence, supported by an on-site groundwater well and septic system. An existing City-owned sanitary sewer main is located directly in the front of the site. Page 2 of 5