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Prezoning The Kaiser Sand and Gravel acreage was pre-zoned as Q (Rock, Sand and Gravel Extraction District) in 1997 when the company accepted the Indemnity Agreement executed by the City of Pleasanton. The Qpre-zone allows various uses specific to quarry operations as well as uses that are consistent with the Agriculture District, excepting the construction of any buildings. On July 23, 2008, an alternate pre-zone was presented to the Planning Commission. Staff at that time recommended the pre-zoning be changed to Agriculture. This designation is typically used for areas designated as open space throughout the City. However, it was evident that the Planning Commission was uncomfortable with staffs recommendation, in that concern was expressed that a single family dwelling unit or other agricultural out buildings could be constructed on the site. Therefore, the area considered for annexation by the City does not require apre-zone and will remain O which more fully addresses the Planning Commissions concerns and meets the current pre-zone requirements for the proposed annexation to move forward to LAFCo. Annexation Procedures At this meeting Council will formally decide whether to request LAFCo to take action on the annexation and enter into a tax sharing arrangement with the County. If Council chooses for the annexation to proceed, the Council: 1. Adopts a resolution formally initiating the annexation with LAFCo; 2. Adopts a resolution agreeing to the exchange of property taxes with Alameda County. The County Board of Supervisors must also approve the tax share agreement. This item will be scheduled for the County Board of Supervisors meeting after City Council adopts a resolution agreeing to the exchange of property taxes. The annexation application is submitted to LAFCo staff for its review. Once LAFCo staff is satisfied that all requirements have been completed, the matter is scheduled for a public hearing for action by the LAFCo Commission. At the hearing, LAFCo will review the staff report and factors related to the annexation, testimony of the public agency and general public, service plan, and CEQA documents. LAFCo may approve the annexation with either revisions or conditions; it may also decide not to approve the annexation. If there is 100% consent by the property owners, as in this case, LAFCo may proceed to approve the application without an additional hearing. LAFCo will then order the change in organization. The annexation becomes effective when it is formally recorded with Alameda County. Page 3 of 4