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BACKGROUND On October 16, 2007, a Notice of Intent to Circulate Petition for the Initiative to Save Pleasanton's Hills and Housing Cap was filed with the City Clerk. Pursuant to the Elections Code (E.C.), the City Attorney prepared a ballot title and summary for the proposed measure. The petition proponent then published the ballot title and summary as required by section 9205 of the E.C. The signed petition was presented to the City Clerk on April 15, 2008 and the prima facie count indicated the petition contained a sufficient number of signatures to forward the petition to the ROV for signature verification. On May 12, 2008, the City received from the ROV the attached Certificate of Petition. As set forth in E.C. section 9115 and using the formula prescribed by the California Secretary of State, the ROV conducted a random sample signature examination. This type of sampling requires that a petition receive more than 110% of the total number of signatures required to qualify the initiative; for this initiative this equates to 4,039 signatures. The Save Pleasanton's Hills and Housing Cap petition contained 4,111 valid signatures of qualified registered voters in the City which represents 112% of the total number of signatures needed to quality the initiative. Pursuant to the Elections Code, if the petition is found sufficient, the elections official shall certify the results of the examination to the city council at its next regular meeting. Once the City Clerk has certified the sufficiency, the legislative body must determine whether to adopt the initiative without change; to submit the initiative to the voters; or to refer the initiative measure to city staff for a report on the effect of the proposed initiative measure. DISCUSSION Adopt the Initiative Submit the Initiative to the Voters, or Order a Report The City Council must do one of the following: (a) adopt the initiative, without alteration, at the regular meeting at which the certification is presented or within 10 days thereafter, (b) submit the initiative, without alteration, to the voters at the next regular election, (c) or order a report pursuant to E.C. section 9212. If such report is requested, it must be presented to the City Council within 30 days. After presentation of the report, the Council must either adopt the initiative or submit it to the voters. Report on effect of proposed initiative Before deciding whether to adopt the initiative as presented or to call for an election, the Council may request a report on the effect of the proposed initiative. The report may address any or all of the following: (1) Its fiscal impact.