CITY COUNCIL SUPPLEMENTAL MATERIAL 7-27--26

2 The Project, which proposes to develop 189 single-family homes on approximately 29 acres of land north of Busch Road, is within the area that the City has historically referred to as the “East Pleasanton Specific Plan” area, although this specific plan has never been adopted by the City. In connection with its proposed development of the Project, Developer and City staff have engaged in extensive negotiations for a Pre-Annexation and Development Agreement (“PADA”). Based on negotiations with staff to date, Developer’s proposed responsibilities for funding new transportation infrastructure in connection with the Project, including the Future El Charro Extension, would be expected to total approximately $5.2 million,1 including Developer’s voluntary payment to the City of $2,250,000 (the “Payment”) towards the future costs of the Future El Charro Extension (equal to an additional $11,905 per residential unit based on 189 units). Historically, the City took the position that, based on the Planning Documents (as defined below), the costs for the Future El Charro Extension should be allocated 50-50 between developers in the East Pleasanton Specific Plan area (collectively) and the City. For this position to have merit under the applicable law, the City would need to establish that the required essential nexus existed; and further that, for the proposed 50-50 allocation, this was reasonably proportionate. As demonstrated by substantial evidence in the record and as further discussed below, the necessary legal findings cannot be made to support the foregoing position with respect to the Project. Given the long-planned nature of the Future El Charro Extension as backbone infrastructure to serve the existing and planned future growth of the City and the broader region (contemplated since at least the 1990s), combined with the paucity of information or data to support any legal nexus between the Future El Charro Extension and the Project or the proposed 50-50 allocation, there is no basis under applicable law for the City to require Developer to contribute any amounts towards the costs of the Future El Charro Extension due to the failure to satisfy the requisite legal tests. As such, the proposed Payment by Developer towards the future costs of the Future El Charro Extension is best characterized as a voluntary contribution since it otherwise could not be lawfully imposed by the City due to the lack of the required nexus. II. RELEVANT FACTUAL BACKGROUND To provide relevant factual context for our legal analysis, this section briefly discusses: (1) the history and scope of improvements contemplated for the Future El Charro Extension and related relevant nexus studies/technical analyses; and (2) the lack of any basis for the City to require Developer to contribute toward these improvements (apart from Developer’s TDF contributions). The Future El Charro Extension consists of a four-lane divided road from Stoneridge Drive to Stanley Boulevard with related bike facilities (described as a Class I bike facility along the south side or Class IV bike facilities). These improvements have been contemplated as a necessary regional improvement by Pleasanton as well as the broader Tri-Valley Transportation Council (“TVTC”) for decades. Since at least 1996, long before any residential 1 This amount is comprised of (1) the Payment, (2) $750,000 in frontage improvements, and (3) approximately $2.2m in Transportation Demand Fees payable to the City, but does not include an additional nearly $1.4m in Tri-Valley Transportation Development Fees payable to the TVTC.