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DISCUSSION AND RECOMMENDATION As noted, the City of Livermore has 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. Longer-term, the City of Livermore would also like to pursue annexation of SMP -38 in anticipation that it will be developed with uses similar to those contemplated for SMP -39 and SMP -40. Since receipt of the June 2020 letter from the City of Livermore, staff has had the opportunity to meet with representatives of PGC and a prospective commercial developer with whom they are partnering to pursue entitlements on SMP -39 and SMP - 40. Staff has also met with City of Livermore staff to discuss issues of concern to Pleasanton, including some of the specific points noted in the discussion section above. Given the location of the properties adjacent to existing limits of the City of Livermore, the location of other jurisdictional boundaries such as the Urban Growth Boundary for both Pleasanton and Livermore, and other features such as utility service, staff believes development of the properties within the City of Livermore (as opposed to Pleasanton) has merit. However, to mitigate some of the City's concerns with potential development of the sites given the close proximity to Pleasanton, staff recommends that the City Council authorize the City Manager to pursue agreements with the City of Livermore and Pleasanton Gravel Company (and other entities such that the City of Dublin, if needed). Pending satisfactory outcomes of these agreements (i.e., the agreement or series of agreements address Pleasanton's key planning concerns), and notwithstanding new information that may arise during project review, the City of Pleasanton would recommend tentatively supporting the annexation and development of all three properties in City of Livermore. Although details of the agreement would be fleshed out in discussion with the City of Livermore, staff recommends that the agreement address the following key elements: - City of Pleasanton Participation in Project Review: The City of Pleasanton would request the ongoing ability to participate in and provide comments on the proposals, technical reports, and environmental review during the City of Livermore's development review process as well as the preferred land use outcomes for all three parcels. Traffic Analysis and Mitigation: Development of any or all of the three parcels should minimize impacts to City of Pleasanton roadways and intersections from project -related traffic. The City of Pleasanton would request that Livermore advance capacity improvements such as modifying Jack London Boulevard to be four lanes. Additionally, if mitigation at the 1-580 and El Charro Road interchange is necessary, the City of Pleasanton would be party to a discussion about cost- sharing with the cities of Livermore and Dublin. - Planning Boundaries: Urban Growth Boundary and Sphere of Influence: Assuming agreements and related actions can be successfully accomplished, staff would recommend City Council support the annexation of all three properties into the City of Livermore. On a similar basis, the City of Pleasanton Page 9 of 10