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BACKGROUND Bill and Beverly Howell are requesting City sewer service for their existing residence located at 6651 Alisal Street located within the Happy Valley Specific Plan area. This residence is located on a 0.87-acre parcel outside the City limits. The septic tank and leach field that is marginally serviceable at this time, currently serves the existing residence. There currently is an 8" sanitary sewer line along Alisal Street installed as part of the Callippe Preserve Golf Course infrastructure. Sewer infrastructure installed in this segment of Alisal Street was constructed specifically to serve existing dwellings in the area. Installation of this sewer main included sewer laterals for properties along Alisal Street for future use. The Alameda County Department of Environmental Health restricts repairs or installation of septic systems when a sanitary sewer is within 200 feet of the property. Happy Valley Specific Plan The core sewer system for the Happy Valley Specific Plan (HVSP) consists of a sewer lift station, 8" gravity sewer main, and a 4" sewer force main. This system was designed for existing and future homes within the HVSP. The Specific Plan specifies that parcels located in this area are subject a share of the cost, since the improvements installed do benefit these properties. This parcel is within the Happy Valley Specific Plan area and consequently this parcel is obligated to pay a share of the infrastructure cost. The sanitary sewer infrastructure cost for an existing residence is $21,671. This amount includes the pro-rata share of the core sewer system, sewer lateral, and sewer connection fee (currently the DSRSD plus local connection fee is $10,400). This does not include septic system abandonment, on-site plumbing, permit fees, and LAFCo fees. Preannexation and Provisions of Sanitary Sewer and Water Service Agreement Historically, when an owner of property located outside the City limits requests sewer and water services, the City has granted such request only after determining that the use on the property to be serviced is consistent with the City's General Plan and after receiving assurances that the property owner will enter into a preannexation agreement. This agreement allows the owner to connect to the City's sewer system prior to the property being annexed to the City, providing the following requirements are met: The property owner agrees to (a) pay the sewer connection fees, (b) pay all costs associated with extending the sewer system to serve this property, (c) pay all costs associated with the connection to and use of the sewer system, (c) abandon the existing septic system on the property, (d) pay all City and County processing fees for LAFCo approval, and (e) support any subsequent annexation initiative that may occur. Page 2 of 3