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BACKGROUND Daniel Marks is requesting City sewer service for his existing residence located at 6352 Alisal Street located within the Happy Valley Specific Plan area. This residence is located on a 2.67-acre parcel outside the City limits. A septic tank and leach field that is marginally serviceable at this time currently serves the existing residence. There currently is an 8" public sanitary sewer pipeline along Alisal Street installed as part of the Callippe Preserve Golf Course infrastructure that could serve this property. Installation of this sewer main included sewer laterals for properties along Alisal Street for future use. Alameda County, Department of Environmental Health, restricts repairs or installation of septic systems when a sanitary sewer collection system is within 200 feet of the property. The property owner is also requesting approval for a future connection to the water system. At this time, the current well is functioning properly, however, approval at this time will allow connection to the water system at a later date. This parcel is within the Happy Valley Specific Plan (HVSP) area and is obligated to pay a pro-rata share of the cost associated with the public utilities recently installed during the construction of the Callippe Preserve Golf Course. Infrastructure installed to serve the Callippe Preserve Golf Course, as well as other new development in the Happy Valley Specific Plan area, was modified to accommodate existing dwelling units. Modifications to accommodate existing dwellings included increasing pump sizes, increasing water tank size, and in some cases, increasing pipeline sizes. All of these modifications are considered "upsizing" of the facilities to accommodate existing dwelling units. The pro-rata share of infrastructure costs to be paid by existing dwelling units when they connect to City services include facility upsizing costs only. Happy Valley Specific Plan The Specific Plan specifies that parcels located in this area are subject to a share of the cost of the infrastructure improvements, since the improvements installed do benefit these properties. The core sewer system installed to serve the Happy Valley Specific Plan Area consists of a sewer lift station, 8" gravity sewer main, service laterals, and a 4" sewer force main. The core water system includes a water booster pump station, 12" water main, service laterals, and water storage reservoir. The cost of any increase in size of these facilities to accommodate existing dwellings is included in the pro-rata share to be paid by property owners as they connect to the system. The total cost for sewer for an existing residence is $21,080. This amount includes a pro-rata share of the core sewer system (upsizing costs only), sewer lateral to the property line, and sewer connection fee ($10,678). The current cost for an existing residence connecting to the water system is $32,284. This amount includes a pro rata share of the water system (upsizing costs only), water lateral to the property line, and Page 2 of 3