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Ms.Ayala asked about the third developer. Mr. Roush said that was Black Mountain Development, the developer of the 34 golf course homes. It has not expressed willingness to pay its share of the infrastructure. Staff is continuing to encourage these developers to participate in the costs. James Kaschmitter,6291 Alisal Street, said his property is three acres of flat, buildable land. There is currently a very old house on the property,which has a redwood foundation. It is located on one end of the property near the road. It is small and, despite extensive improvements, still needs substantial work. He would like to construct a new house with connection to the City sewer and use the existing house as a guest cottage. He did not feel it was cost effective to connect the old house to the sewer. He had no intention to sell his residence. He did not know which Option would apply to his situation. Ms.Hosterman felt Option 3 would apply to his situation. Ms.Ayala asked how he felt about annexation? Mr.Kasdimitter said if the area develops,he would like it done well with reasonable lots and upscale housing. He did not want high density housing. Some consideration should be given to the roads because traffic will be an issue. Deirdre Gipson, 6187 Alisal Street, disagreed with Mr. Roush's statement that the preannexation condition to not oppose annexation meant a yes vote. She felt"not oppose"meant you don't vote"no". There were no Anther speakers and the public hearing was closed. Mr.Campbell felt the preannexation agreement did not seem to be a binding document. Ms. Ayala indicated she wanted a bypass road for this area and she wanted to put infrastructure in at the same time the road is constructed so the street does not have to be torn up more than once. She wanted the Happy Valley residents to want to annex to the City of Pleasanton,so she wanted to do as much as she could to encourage developers to pay their share of the infrastructure to make connection less expensive for the residents. She did not want to make a decision at this meeting that would discourage the residents from annexing. Ms. McKeehan said if one wanted to make everyone happy, then Option 4 should be selected. That says that anyone who wants to develop can get water and sewer if they sign a preannexation agreement. In the past,Council has been really concerned about extending water and sewer service to lots that do not exist today. On the other hand, some people would be unhappy with that because they don't want any more building to occur. Staff suggested Option 3 because it conforms to previous policies and goes a little further to allow people with existing legal lots to get services. Ms. Ayala was uncomfortable with the presume/cation agreement because it does not require a yes vote and will not accomplish the end goal. EXCERPT: CITY COUNCIL MINUTES, December 3,2002 Page 3 of 4