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BACKGROUND Rob Guerra is requesting City sewer and water service for his existing residence at 893 Sycamore Road located within the Happy Valley Specific Plan area. This residence is located on a 1.67-acre parcel across from the Bridle Creek subdivision outside the City limits. Mr. Guerra recently completed an addition to his existing house. City water and sewer is required prior to the County signing-off on his permit for his building addition. In 2006, Mr. Guerra received administrative design review approval (PADR-1555) from the City for his proposed addition. The building addition is in conformance with the Happy Valley Specific Plan guidelines and is in accordance with the Preannexation Agreement. The Preannexation Agreement requires City design review approval prior to obtaining building permits from the County. Water and sewer services could be provided by connection to the existing 8" water main and 8" sewer main on Sycamore Road. This parcel is within the Happy Valley Specific Plan (HVSP) area, and this parcel is obligated to pay a share of the infrastructure cost associated with the infrastructure recently installed. Hauav Vallev Specific Plan The core sewer system installed does not benefit this parcel; however, the core water system benefits this parcel and is obligated to pay apro-rata share. The portion of the core water system charged to an existing residence includes the water booster pump station and storage reservoir. The water system was designed for existing and future homes within the HVSP. The Specific Plan specifies parcels located in this area are subject a share of the cost, since the improvements installed do benefit these properties. The current cost for an existing residence connecting to the water system is $33,568. This amount includes a pro rata share of the water system ($11,778) and water connection fees fora 5/8" meter ($21,090). The current cost for a sewer connection is $10,400. These fees do not include on-site plumbing, permit fees, and LAFCo fees. Historically, when an owner of property located outside the City limits requests sewer and water services, the City has granted such requests 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 and water systems prior to the property being annexed to the City providing the following requirements are met: The property owner agrees to (a) pay the sewer and water connection fees, (b) pay all costs associated with extending the sewer and water systems to serve this property, (c) Page 2 of 3