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FINANCIAL STATEMENT There is no direct financial impact to the City as a result of the information in this report. Elements of future agreements that may involve costs to the City would be considered as part of the approval of those agreements. BACKGROUND Introduction The three PGC -owned properties in question are located to the east of Pleasanton city limits and generally north and east of the East Pleasanton Specific Plan (EPSP) boundary. The properties are currently identified with surface mining permit (SMP) numbers and are referred to as, SMP -38, SMP -39, and SMP -40; despite the "SMP" nomenclature, the sites do not have approved SMPs from Alameda County. SMP -38 and SMP -39 are located east of Lake I and Lake H and south of the Livermore Municipal Airport, and SMP -40 is located farther east; all three parcels are adjacent to the city limits of Livermore (see Attachments 1 and 2). Since these properties are outside the city limits of both Pleasanton and Livermore, the disposition of these properties requires coordination between the two cities, the property owner, and Alameda County. Coordination with other agencies such as the Alameda County Local Area Formation Commission (LAFCo)' may also be required. At various times in recent years, PGC has approached both the City of Pleasanton and the City of Livermore seeking to develop the properties with industrial uses. More recently, in June 2020, City of Livermore staff approached the City of Pleasanton, expressing interest in annexing and considering approval of future industrial development of all three parcels, with priority to SMP -39 and SMP -40, which lie adjacent to the existing Oaks Business Park within Livermore. Attachment 3 to this report is a letter from the City Manager of Livermore conveying this intent. The City of Livermore sought dialog with the City of Pleasanton on the future disposition of these properties, with an interest in working cooperatively to address issues and concerns their development may raise, and in identifying mutually beneficial outcomes for the two cities. Communication from Livermore indicates that potential development would likely be similar to that found in Oaks Business Park, but with some modifications: specifically, Livermore has indicated it would be supportive of "high end" industrial uses such as research and development, office, manufacturing, and innovation centers for SMP -38 and SMP -39; the uses for SMP -40 would be similar but would also allow warehousing and distribution. LAFCo is a state mandated local agency that oversees boundary changes to cities and special districts, the formation of new agencies including incorporation of new cities, and the consolidation of existing agencies; specifically, Alameda LAFCo oversees Alameda County. The broad goals of the agency are to ensure the orderly formation of local government agencies, to preserve agricultural and open space lands, and to discourage urban sprawl. The mayors of both Pleasanton and Livermore are commissioners of Alameda LAFCo. Page 2 of 10