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BACKGROUND In July 2009, the City Council approved a lease agreement with Verizon Wireless to locate a cellular facility on Koll Center Parkway in the Bernal Corporate Business Center. The lease expressly provided language stating that entering into the lease would not impair the City's ability to exercise its discretionary land use authority. In September 2009, Verizon submitted an application with the Planning Division for design review approval. In April 2010, staff mailed notices for the project and received significant negative feedback from the residents living on Corte Monterey, a cul-de-sac which terminates approximately 300 feet away from the proposed cellular site across the Arroyo Del Valle. Over the next few months, staff worked with Verizon to collect additional information requested by the residents as well as information required by the municipal code. Having not received all of the information, in August 2010, the Zoning Administrator denied Verizon's design review application for incompleteness. Verizon appealed that decision to the Planning Commission which heard the appeal but continued the matter two times in order to obtain additional information from the applicant. In December 2010, the Community Development Director sent Verizon a letter stating that he became aware of new information from the City's GIS department and determined that Verizon's proposed site did not meet the locational requirements of the City's wireless ordinance. The letter stated that although the homes on Corte Monterey are more than 300 feet away from Verizon's proposed facility, the public trail at the end of Corte Monterey is located less than 300 feet from Verizon's proposed facility. And because the trail is undeveloped residentially zoned property with a General Plan designation of "Open Space---Public Health and Safety" with a "Wildland Overlay", the City's wireless ordinance prohibited the siting of the facility at Verizon's proposed location. Verizon's legal counsel threatened litigation to overturn the Director's decision and recover damages. Based on the likelihood of a lawsuit, the zoning difficulties presented by the Koll Center Parkway site, and the negative response from the residents on Corte Monterey, staff began working with Verizon to find another location for the cellular company to locate its equipment. After working with Verizon staff for several months, staff determined that the City-owned water tank site at Santos Ranch Road would meet Verizon's coverage needs and provide a suitable location that will not have negative aesthetic impacts to the surrounding area. The attachments demonstrate Verizon's cellular coverage in Pleasanton before and after the addition of equipment at this site. DISCUSSION Per the Lease Agreement, Verizon will place a 43' tall broadleaf monotree on the City's parcel adjacent to the City water tank. The faux tree will be similar to the faux magnolia monotree that currently exists on the site but will be set further back to reduce visual impact. Verizon's cabinets and related equipment will be camouflaged by green slat fencing with natural coyote brush planted in front of the fencing. City staff believes that Verizon's design plans will not have negative aesthetic impacts to the surrounding area. Page 2 of 3