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LAFCo and the Annexation Process LAFCo is a state mandated local agency that oversees boundary changes to cities and special districts, the formation of new agencies including incorporation of new cities, and the consolidation of existing agencies. The Alameda County LAFCo is composed of two county supervisors selected by the Board of Supervisors; two city council representatives selected by a majority of the mayors in the county; two special district board members selected by the special district selection committee; and one public member selected by the other six members. The Commissioners are charged with approving or denying annexation requests in Alameda County. Approximately 122.5 acres of the Staples Ranch property is located in unincorporated Alameda County. LAFCo requires a tax cost sharing agreement and all PUD zoning and environmental approvals for a project to be effective before it will consider annexation application for a development proposal. If the Staples Ranch project is approved by City Council, once the approvals become effective City staff will apply for annexation approval. From the date an annexation application is received, LAFCo will typically schedule a public hearing within approximately 60 days. LAFCo's hearings occur every other month, with the hearings in 2008 being in January, March, May, July, and September, November. The City can request a special hearing date; however, the parties involved would be required to agree to the date change and the City would be responsible for costs incurred for the special meeting (such as county staff time to attend the meeting). Pleasanton's Sphere of Influence Boundary The Staples Ranch property is located within Pleasanton's Sphere of Influence. In relation to Staples Ranch, the Sphere of Influence line is located immediately north on the I-580, and immediately east on the east side of EI Charro Road. The Sphere of Influence is a boundary line established by LAFCo and designates the probable ultimate physical boundary and utility service area of Pleasanton. Each city has a Sphere of Influence boundary, and one city's boundary line does not overlap with another's. LAFCo has the authority to amend and update a city's Sphere of Influence boundary. P/easanton's Urban Growth Boundary The Staples Ranch property is located within Pleasanton's and Alameda County's Urban Growth Boundary (UGB). In relation to Staples Ranch, the UGB is located immediately north on the I-580 and immediately east of EI Charro Road. An UGB is a boundary line on a General Plan Map around the edge of land planned for urban development at General Plan buildout. The line distinguishes areas generally suitable for urban development and the provision of urban public facilities and services from areas generally suitable for the long term protection of natural resources, large lot agriculture and grazing, parks and recreation, public health and safety, sub regionally significant wild lands, buffers between communities, and scenic ridgeline views. Urban growth boundaries are intended to be permanent, and to define the line beyond which urban development will not occur. Page 14 of 16