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Happy Valley Open Space • Preserve the Character of Happy Valley: The traffic circulation near the golf course remains a top concern for the City. The City Council adopted the recommendation of the Blue Ribbon Committee to alter the planned alignment of the road leading to the golf course and the Happy Valley Bypass Road financing plan is underway with various funding alternatives under exploration, including using cash reserves, debt financing and private developer financing. Completion of the financing strategy will coincide with review and consideration of the proposed Sportorno property development. Economic Development • Foster Economic Prosperity: Several high-profile project negotiations will continue through this year. These include: 1) purchase of the Alameda County Transportation Corridor for additional Downtown and Firehouse Theater parking; 2) annexation and development of the Staples Ranch property; and 3) expansion of the Stoneridge Shopping Center. In partnership with the Chamber of Commerce, efforts are underway to coordinate an economic summit to discuss economic issues of impact to the Pleasanton business community, bringing together local companies with financial, technical and other resources. The inaugural event is planned for October 2008 at CarrAmerica Conference Center and will have an emphasis on innovation, technology entrepreneurship and environmental. initiatives. Youth Programs • Strengthen Youth Programs, Services and Activities: The City has historically invested in school sites that can also serve as additional park space for youth during non-school hours. This past year, in partnership with the Pleasanton School District, the City has funded the installation of new turf, irrigation and landscape features at Donlon Elementary School. This improved amenity has enhanced the City's field space for youth-related sports and activities. The installation of lighted tennis courts at Pleasanton Middle School has also been completed. This improvement will enhance the availability of lighted tennis courts to serve our growing youth and adult tennis populations. The Alameda County Tri-Valley Adolescent Health Initiative is working with the cities of Dublin, Livermore and Pleasanton and the school districts to address teen mental health. Through the Youth Master Plan Implementation Committee, an Ad Hoc Committee was formed to represent youth mental health issues specific to Pleasanton. The Ad Hoc Committee will work at-large with the Tri-Valley Adolescent Health Initiative to assist in shaping the services or programs that will be generated for the three cities. Elements of the Tri-Valley Adolescent Health Initiative will also be integrated into the Youth Master Plan update. Page 4 of 7