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Mr. Sweeney said that is correct and Council would have the discretion to say no if that development failed the level of service condition standards. He said staff has done an extensive traffic modeling to determine the appropriate deduction from Hacienda's development cap for non-office building land uses. Hacienda agrees with what staff is recommending as a very conservative approach. He said it is safe and prudent to deduct fewer square feet of the development potential than what staff is recommending. Hacienda believes there is a mix of uses around the Business Park. He described PeopleSoft's transportation systems management plan. He said Hacienda is committed to continually improving its transportation systems management program. He thanked staff for working with Hacienda to bring the issue of the remaining development capacity to a close. He reiterated that Hacienda will do its part to address traffic concerns in Pleasanton and throughout the region. He said Hacienda bargained with the City and installed the infrastructure up front to build out the Business Park. He said it is essential to know how much development capacity the remaining parcels will be allocated for, so Hacienda can finish the Business Park. He asked Council to adopt staff's recommendation number two. Ms. Ayala asked if Hacienda would look at a TSM program when the elementary school is constructed. Mr. Sweeney said Hacienda has not addressed the elementary school yet. Hacienda did help with the Mohr School TSM program. The issue for the new elementary school is primarily in the morning. Ms. Michelotti questioned the idea of double counting. She said the trips coming to and leaving the school had both been counted. She felt there was a lot of capacity that could be improved. Mr. Sweeney said Hacienda is not going to use the capacity allocated to these lots. Hacienda has transactions pending and needs to know how much development will be allowed. Ms. Ayala asked if the PeopleSoft building is located by BART and the freeway. Mr. Sweeney indicated on a map where the new PeopleS oft project would be. That was approved by the Planning Commission on August 25 and is adjacent to its world headquarters. Kris Kumaran, 6450 Calle Esperanza, believed there was cause for alarm. He listed six points: 1) page 11, 66 intersections were evaluated for level of service. Six of those were found to be at level D. He said already the City is starting from a bad situation. 2) When approved projects are overlaid to this and mitigation efforts are included, five intersections go to level of service E or F. 3) At buildout 24 or 36% of our major intersections will be at level of service E or F. His concern is that at more than one-third of the major intersections in the City, a driver will be frustrated by two or three light changes before going through the intersection. 4) Table lA and Table lC show the current base as 56,000 trips. This number will increase to Pleasanton City Council Minutes 16 09/15/98