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Ms. Dennis asked staff to comment on a letter from New Cities regarding a modification of the PUD. Mr. Swift said the letter addresses having the developers in the Happy Valley and North Sycamore area contribute towards a share of the water and sewer main infrastructure costs. New Cities has agreed to participate in the financing plan. The letter asks Council to review and take action on the project tonight and suggests adding a condition stating that New Cities will participate in the infrastructure costs. Ms. Michelotti asked how would a legal challenge be handled. Larissa Seto said if the parties were to subsequently enter into a development agreement, that is a contract that is binding on both parties, it would effectively waive their rights to challenge. In addition, a development agreement would also address the Council's concern regarding the timing and the guaranteeing of the bypass road, which the present condition does not address. Ms. Ayala asked if a development agreement should be signed before approving the project. Ms. Seto advised Council it would. Mayor Tarver asked if the Specific Plan should be revised before significant changes are made to the PUD application. Ms. Seto advised if the condition mentioned above were to be included it should be part of a development agreement, unless there is interest in going back and reviewing all of the infrastructure requirements as part of a review of the Specific Plan. The developers are requesting that immediate action take place. She indicated that a development agreement would work more expeditiously, rather than going back and studying the Specific Plan. Mayor Tarver clarified his question had to do with the requests made by residents and what could be done in regards to unit reduction. He asked if Council would be able to discuss this issue tonight in lieu of revisiting the Specific Plan? Ms. Seto said the Council could address issues of density for this specific project based on the concerns regarding the PUD. The Specific Plan provides guidance, but Council still has the discretion to decide what is best. Ms. Acosta said if Council found the project unacceptable it would be helpful for Council to provide direction to staff as to how the Specific Plan ought to be changed. Mr. Swift said the Specific Plan's financing plan states the pro rata share of each project is going to be determined based on what actually is approved rather than what was originally established in the Specific Plan. The understanding of all the parties within the Specific Plan is that Pleasanton City Council 2 08/09/99 Minutes