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Since the December 15, 2021 Planning Commission meeting and recommendation, representatives from ValleyCare have reached out to staff and indicated that they would not like to be considered as a potential housing site, and wished to be removed from the list at this time. With the removal of Site 10: ValleyCare (108 units), there would be a remaining total capacity of 4,844 units among the other sites — this would bring the total capacity of new sites closer to the buffer, with only 129 units more than the recommended buffer. As noted, although the initial recommended sites list incorporates a relatively large buffer, the City Council will have the opportunity to further refine this list and determine an inventory that is potentially closer to the actual shortfall or gap between existing zoning capacity and the RHNA. Additional public input, HCD review, and the CEQA analysis, as well as the Council's weighing of the pros and cons of the inventory will likely all come into play as the sites list is refined and final recommendations made with adoption of the Housing Element in early 2023. Staff also notes that the Planning Commission debated inclusion of the SteelWave property at some length, with some Commissioners at least somewhat supportive of having these sites in the inventory because they are quite suitable for a large increment of residential development, and doing so would reduce the need to include more sites in more central parts of Pleasanton, where neighbor impacts are likely to be greater. Although staff did not recommend including the SteelWave site, recognizing that there may be interest in doing so, a secondary option was developed for the Commission's information, including the SteelWave site, and removing five additional smaller sites (Owens Drive; Site 10: ValleyCare; Site 11: Old Santa Rita; and Site 12: Pimlico North, and Site 20: Boulder Court) to retain a total inventory closer to the recommended number. This option is outlined on page 13 of Attachment 2. Finally, in its discussion, individual Commissioners suggested other potential adjustments to the inventory, including eliminating the Richert Lumber site, for reasons similar to those noted for Mission Plaza and Valley Plaza; a suggestion by one Commissioner to reduce the density on the PUSD District Site; and a suggestion by some Commissioners that the density on the Merritt site could be increased. However, these ideas ultimately did not get support from a majority of the Commission and were not included in the recommendation. 15 of 18