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Page 14 of 18 (Attachment 4); these changes also reduce the overall unit count from 194 to 189 units. The Arroyo Lago project has been in process with Alameda County for more than two years, and is nearing completion of the County entitlement process, with significant investment made in developing project plans, including CEQA review. Given this, the applicant has indicated that it is unwilling to consider substantial further changes for a City application that would result in major revisions to the site plan, number of units, home sizes, or unit types. Since the property lacks City zoning, and would be processed as a Planned Unit Development (PUD), the City has latitude to determine the appropriate development standards for the project, and can offer flexibility regarding such standards. However, it is typical for the City to “benchmark” a PUD application to standards that would ordinarily apply to projects of similar type and density, to help evaluate the quality and acceptability of the project as a development within Pleasanton. To provide such benchmarking, staff reviewed the proposed Arroyo Lago project for conformance with the Objective Design Standards for Housing Development Sites, taking the standards for detached single-family projects for projects of more than 7 and up to 14 dwelling unit/acre range as the presumed applicable standard. Staff’s review found the project complies with most, but not all, ODS standards. Given the unique status of the project, staff recommends accepting deviations from all non-compliant ODS standards except for the minimum 15-foot rear setback standard. Staff recommends the City Council direct the applicant to modify the project to provide a minimum 15-foot rear setback for lots abutting the Ironwood community. Currently, the project provides a 14-foot rear setback; staff recommends the applicant increase the rear setback on these lots by one foot with the expectation that such modifications do no require significant re- design of the project. Key Terms for Processing of the Arroyo Lago Application; Future Pre-Annexation and Development Agreement Terms Moving forward with applications for annexation and development in the city will require considerable investment on the part of the applicants and the City, including preparing new plans and studies, undertaking additional CEQA review, and negotiating the various entitlements and agreements necessary as part of those applications. As such, the applicant seeks as much certainty as possible around the material aspects of the City’s review and consideration of those applications, while recognizing the current City Council cannot pre- determine the outcomes or decisions of a future City Council, nor make a binding decision in the absence of comprehensive information and public input. If the Council wishes to proceed with the Arroyo Lago application, staff will work with the applicant to prepare a Pre-Annexation and Development Agreement (PADA) for the City Council to consider with the project entitlements. A PADA is a legally binding contract between a City and a developer that sets forth the terms, conditions, and obligations for a development project. Over the past several months, City staff and the applicant have discussed terms related to the processing of a City application and terms to include in the PADA. Staff and the applicant reached agreement on the application processing terms, provided as Attachment 1. Staff and the applicant have not yet reached agreement on a several key PADA terms, particularly terms that have financial implications for the City and the applicant, related to infrastructure improvements, development impact fees, and affordable housing. Page 213 of 749