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making the policy decision to build or not build in the near term the extension. That approach provided the basis for the February 3`d staff recommendation. Based on the above, staff has prepared the following three options that the Council may consider regarding the extension of Stoneridge Drive. Option 1. Approve staff recommendation as set forth in the February 3, agenda report certifying the EIR and approving the Amended Specific Plan and PUD zoning ordinance. If the Council so chooses, conduct one or more public hearings to discuss whether to extend Stoneridge Drive. This option is most consistent with the MOU and would allow the overall project, including the PUD development plans, to move forward but without the full extension of Stoneridge Drive. A potential stumbling block of this option is that LAFCo, or other agencies might challenge the project on environmental grounds. In addition, if Supervisor Haggerty's position is supported by the Surplus Property Authority Board, and if the full extension were not included with approval of the development agreement (which is scheduled to be considered after all the PUD development plans have been considered in late summer 2009), the ACSPA would not pay for the full extension, including widening the bridge from two lanes to four, nor pay for off site mitigations. This option may also hinder further action related to the Draft Policy Statement. This option, however, does not prevent the Council from considering whether to extend Stoneridge Drive at some future time, prior to or after PUD review and approval. Option 2. Approve staff recommendation as set forth in the February 3, agenda report certifying the EIR and approving the Amended Specific Plan and PUD zoning ordinance and direct staff to prepare additional environmental review that addresses both a two and four lane extension of Stoneridge Drive. This option allows the project, including the PUD development plans, to move forward and puts into play additional environmental work that would address either a two lane or a four lane full extension of Stoneridge Drive. The additional environmental work could be completed in three to nine months, depending on whether an EIR addendum or a supplemental EIR were necessary. In either event, the environmental work would be completed prior to approval of a development agreement and prior to submitting an application to LAFCo for annexation of the property. Regardless of the documentation produced, staff would assure that the environmental review includes an opportunity for public comment. This process would also most likely involve amendments to the SPA (a legislative action) to indicate more specifically that the two or four lane full extension would be built and its timing. Page 5 of 10