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Page 6 of 18 • If developed in the county, the three projects would have a net negative annual impact on the City’s general fund of -$780,000 if developed in the County. The net fiscal impact of the East Lakes and Arroyo Lago projects, excluding Parcel H, is -$713,000 if developed in the county. In addition to these annual revenues reported in the fiscal impact analysis, the applicants have indicated their interest in designating Pleasanton as the "point of sale" for construction materials, appliances and other goods associated with the new development. Sales tax revenues are based on taxable sales generated in the city and the Bradley-Burns 1% local sales tax rate. The California Department of Tax and Fee Administration (CDTFA) allows construction contractors with contracts valued at $5 million or more to obtain a sub-permit for the jobsite of the qualifying contract. This sub-permit enables the contractor to allocate sales tax directly to the local jurisdiction where the jobsite is located, rather than through the countywide pool. The ownership group has agreed to obtain such a sub-permit for the jobsite, ensuring that the City will collect a larger share of local sales/use tax than it would otherwise receive. These one-time/construction related revenues would be of additional fiscal benefit to the City. The fiscal impact analysis findings are based on the specific development programs used for the analysis. As noted, the applicant has provided some alternative development concepts for the East Lakes property that include additional units and a shift of some units to be non-age- restricted. These alternatives would result in different fiscal impacts, based both on unit number and type. While detailed analysis of the alternatives has not been conducted, in general, EPS expects that increasing the number of units would provide a proportionately greater annual fiscal benefit to the City. City staff will share additional information on the fiscal impacts of the applicant’s City alternatives at a future City Council meeting. Infrastructure Improvements The City’s consultants have completed, or are completing, studies of water, sewer, and roadway infrastructure needed to serve East Pleasanton development. Costs for these studies, other than the traffic analysis, were paid by the project applicants. While the studies analyzed the proposed Arroyo Lago, East Lakes, and Parcel H projects, they also take into account new demands from other anticipated East Pleasanton development, including the Kiewit residential project and potential light-industrial development on the Amazon site, consistent with its existing City zoning. At a high level, none of the studies identified deficiencies or constraints in the system such that development of these properties could not proceed or ultimately be served by City infrastructure. However, the projects will require new roads/road extensions, pedestrian facilities, water, sewer and storm drain infrastructure, and improvements/upgrades will be needed to existing streets and utilities infrastructure to ensure that the projects’ incremental demand can be accommodated. Water Akel Engineering Group has prepared a Draft East Pleasanton Annexation Hydraulic Analysis report. Based on the analysis, a new 12”-diameter water pipeline from the south end of El Charro Road near Stoneridge Drive to the east end of Busch Road will be needed to serve the projects. The installation of the pipeline is estimated to cost $4.4 million. As a starting point to Page 205 of 749