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ALAMEDA LOCAL AGENCY FORMATION COMMISSION RESOLUTION NO. 2016-09 (AMENDMENT OF RESOLUTION NO.2016-06) RETROACTIVE APPROVAL OF OUT-OF-AREA SERVICE AGREEMENTS FOR THE PROVISION OF SEWER AND WATER SERVICES TO PROPERTIES LOCATED IN UNINCORPORATED HAPPY VALLEY,REMEN TRACT, AND WEST OF FOOTHILL/SUNOL AREAS WHEREAS, Resolution No. 16-842 dated April 19, 2016 from the City of Pleasanton was filed with the Alameda Local Agency Formation Commission(LAFCo)on May 20,2016; WHEREAS, said resolution is for the purpose of requesting retroactive approval of out-of-area service agreements(OASAs)to extend water and sewer services outside city boundaries to properties located in the unincorporated communities of Happy Valley, Remen Tract and West of Foothill/Sunol areas as listed in Exhibit A; WHEREAS, LAFCo's Executive Officer has reviewed the application and prepared a report, including her recommendations thereon, noting that, in accordance with the provisions of the California Environmental Quality Act (CEQA), LAFCo staff finds the subject project exempt pursuant to §15061(b)(3) of the CEQA Guidelines because the application is for retroactive approval of existing water and sewer service and §15061(b)(3) states that a project is exempt from CEQA where it can be seen with certainty that there is no possibility that the activity in question will have a significant effect on the environment; WHEREAS,subject properties are located both within and without Pleasanton's sphere of influence; WHEREAS,for the properties located within the sphere of influence, Pleasanton has indicated that it is not seeking annexation at this time because: 1. As concerns properties in the Happy Valley area,the City is conducting a comprehensive study of water and sewer service at the Commission's insistence that will provide information and guidance on a comprehensive solution for solving this community's water and sewer needs that may include annexation; and 2. As concerns properties in the Remen Tract, the property owners are opposed to annexation and there are significant infrastructure needs beyond water and sewer service that impose barriers to annexation; and 3. As concerns properties in the West of Foothill/Sunol area, many properties are not contiguous to the existing city boundary, and the properties are scattered such that annexation would not promote a logical boundary for the City; WHEREAS,the necessity of continued provision of water and sewer services to subject properties in the West of Foothill/Sunol area outside of the City's sphere of influence constitutes an existing or impending threat to the health or safety of the public or the residents of the affected territory,to wit: 1. The City has provided documentation establishing that denial of the application will result in termination of water and sewer services to the affected properties because there is no other logical service provider,resulting in a health concern for residents of these properties; and 2. Staff have concluded there exist no alternative service providers to whom notice could be given; and 3. No water corporation has filed a map and a statement of its service capabilities with the Commission; Page 1 of 4