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BACKGROUND The City has had a Growth Management Ordinance since 1978; the Ordinance was last amended most significantly in 1997. It is codified in Chapter 17.36 of the Municipal Code. Under the Ordinance, subject to certain exceptions, only 350 building permits may be issued annually. Section 17.36.060 A, PMC. [Those permits are divided between what are called "major" projects (100 permits), "first come, first served" projects (100 permits) and "affordable housing" projects (50). Section 17.36.070, PMC.] Notwithstanding the 350 building permit limitation, that number may be exceeded for an affordable housing project (Section 17.36.060 B). Also, as between major projects and first come, first served, projects, the number of permits may be reallocated at the Council's discretion, meaning that in any particular year, the Council could, for example, allocate 125 units to major projects and only 75 to first come, first served, projects. Section 17.36.070 B.2.b. Goal 11 of the Housing Element provides that the City is to manage residential growth in an orderly fashion while enabling Pleasanton to meet its housing needs; Goal 12 of the Housing Element provides that the City is to retain flexibility in the growth management process in order to accommodate housing affordability. To implement both Goals, Program 34.5 of the Housing Element provides that the City is to amend the Growth Management Ordinance to allow the City Council to override the annual housing allocation in order for the City to meet is regional housing needs, especially for exceptional affordable housing projects. Although the City has denied neither any project affordable or otherwise nor any building permit due to the limitations of the current Growth Management Ordinance, in the pending litigation that has been filed against the City by the Urban Habitat Program, it is alleged that the City's failure to amend its Growth Management Ordinance as provided in Program 34.5 has had a chilling and adverse affect on opportunities for affordable housing projects in Pleasanton. In order to eliminate these allegations in the litigation, staff has drafted the attached ordinance amending the Growth Management Ordinance. DISCUSSION The attached ordinance will make the following revisions to the Growth Management Ordinance. First, consistent with the updated General Plan, it reflects that a Growth Management Report will be prepared periodically, rather than annually. Section 17.36.050. Second, it will continue to reflect that the maximum number of building permits that may be issued annually will not exceed 350 except when necessary for the City to meet its regional housing needs allocation. Section 17.36.060. Third, it will reflect that because affordable housing units have not been utilized since 2001, there are 400 units currently available for affordable housing projects. Section 17.36.070. Finally, to bring the Growth Management Ordinance into compliance with the updated General Plan, the attached ordinance will amend portions of Section 17.36.080 to eliminate the references to an overall limitation of annual building permits, Page 2 of 3