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BACKGROUND On October 17, 2006, the City Council adopted Ordinance 1942, approving the rezoning of an approximately 30-acre hillside parcel located at 3459 Old Foothill Road from an agriculture district to a PUD-LDR district on eight acres, and to PUD-OS/AG district on the remaining 22 acres. At the same meeting, the City Council Epproved the application of Charles and Scott Austin for a PUD development plan to subdivide eight-acres into lots for eight custom homes, and to deed the remaining 22 acres for permanent open space. On November 15, 2006, the Austin's entered into a private "Agreement for Easement" with Daniel and Karen Garske who, at the time, owned the adjoining property to the west. In the agreement, the Austin's agreed to grant the Garske's an easement across the 30-acre parcel so the Garske's could construct a sanitary sewer lateral. The City was not party to this private agreement, although a copy of the agreement was provided to the City for reference. The Garske property was subsequently deeded to Michael and Jennifer Segundo on December 22, 2006. On May 23, 2007, the City's Planning Commission adopted Resolution No. PC-2007-25 approving Vesting Tentative Tract Map (VTTM) 7813, consistent with the City Council's approval of the PUDs for the property. The VTTM illustrated a "proposed utility easement" through Lots 5 (home site) and 9 (open space parcel) terminating at the western subdivision boundary. This easement was discussed in Finding 5 which read in part, "A new utility easement will be provided from Austin Place, across Lot 5 and the open space parcel, to the Segundo property'. Subsequently, the VTTM was extended administratively by the City and benefitted from extensions allowed by State of California legislation that extended map entitlements due to the Great Recession. Nearing the expiration of the VTTM, and with no other extensions possible, the property owners approached the City to seek a Development Agreement (DA) whereby the map would be extended for ten years in return for the 22 acres of open space being immediately deeded to the City. Said DA was approved by the City Council on July 15, 2014, and subsequently recorded on December 8, 2014. On the same day, the 22-acre parcel was transferred to the City of Pleasanton and recorded as Instrument Number 2014-299746. Neither the DA nor the Grant Deed for the parcel transfer included specific reference to the proposed utility easement, although earlier Planning Commission approvals acknowledging the easement were referenced. On March 3, 2020, the City Council approved the final map, improvement plans, subdivision agreement, and easement and maintenance agreement for Tract 7813. Construction will soon commence. Although City Council Resolution No. 89-31 authorized the City Manager or designee to accept transfers of real estate to the City, the authority to grant the City's real estate interests to private parties was retained by the City Council. As such, the City Council is now asked to effectuate the earlier Planning Commission approvals by formally granting the subject easement to the Segundo's. Page 2 of 3