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BACKGROUND Pleasanton previously entered into a Memorandum of Understanding (MOU) with the SPA for development review of an auto mall, retail center, continuing care community, and city park in the 124 acre Staples Ranch area. The MOU contemplates that the Staples Ranch area, and EI Charro Road in its entirety, will be annexed into the City of Pleasanton and that EI Charro Road will be redesigned and reconstructed to accommodate access to the Staples Ranch and other areas such as to the quarries operated by Vulcan. The Staples Ranch property currently resides in unincorporated Alameda County and is owned by the SPA. Since approval of the MOU, the City of Livermore has approved the EI Charro Specific Plan to guide the future potential uses and development of approximately 150 acres along the Freisman Road and/or EI Charro Road at the western edge of Livermore. Livermore has also approved a 42 acre retail shopping center to be located at the intersection of I-580 and EI Charro Road. This development activity contemplates the use of EI Charro Road for vehicular and pedestrian access. As a result of this potential development activity and the joint use of EI Charro Road, the cities and the SPA have been cooperating on identifying infrastructure improvements that are necessary to support this development activity. In addition, the cities have recognized the potential impact these improvements may have on Vulcan Materials, and have worked with it to address its concerns related to continued access of its trucks from its quarry property to I-580 along EI Charro Road. Vulcan Materials currently operates a mining, distribution, and sales business and has permits with Alameda County to continue this mining activity until 2030. The end result of the discussions between all four parties is the two agreements outlined in this report. The Pre-Development and Cooperative Agreement involves all four entities plus the Vulcan Materials. The Cost Sharing Agreement involves only Pleasanton, Livermore and the SPA. While Pleasanton would typically approve an agreement related to roadway improvements as part of a PUD or development agreement approval, the multi-party nature and timing of the proposed development activity has prompted the parties to move forward at this time. In addition, the potential impact that the EI Charro roadway improvements could have on Vulcan's operations has prompted it to request this matter be addressed in advance of development approvals. Finally, the MOU obligates the City to process the development application and addressing the EI Charro roadway is contemplated in the MOU. The agreements have already been approved by the City of Livermore, Vulcan Materials, Alameda County and the SPA. Page 2 of 6