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housing, replacement units, or affordable units; some sort of annual policy review by the City Council to fine tune the allocation or geographic distribution of units; performance standards; and consideration factors for selection in the event of competing projects. Ms. Stern stated that this is an informational item only, with no formal action required by the Council. This is a complicated issue on which more clarity will be provided following the resolution of current litigation. She advised that the Housing Element update will provide opportunity for discussion and consideration of growth management options as well as an opportunity to refine existing strategies. Councilmember Sullivan said it is a much needed discussion and inquired about the Housing Element update timeline. Mr. Fialho said staff is currently conducting preliminary work and anticipates a start time near the beginning of 2010. He advised that the process will take at least one year to complete. Councilmember Sullivan said that community understanding of the issue is important, particularly since new RHNA requirements will require the rezoning of additional properties beyond those rezoned tonight. He asked what the additional rezoning requirements are. Ms. Stern replied that the total RHNA obligation is approximately 3,200 units. Mr. Roush stated that 1,400 to 1,500 additional units of low to very low- income high density residential units are required beyond what was just rezoned. Councilmember Sullivan asked what the timeframe is for this, and Mr. Roush said staff it is recommended to do so somewhat ahead of the formal consideration of the Housing Element. He explained that recent changes to State law now dictate that any rezoning conducted after the Housing Element is adopted allows for that development by right. Staff would look into doing so in roughly the first 6 months of 2010. Councilmember Sullivan asked when a decision on pending litigation is expected, and Mr. Roush stated that the hearing date is scheduled for December 18, 2009 and a decision is expected in the early part of 2010. Councilmember Sullivan inquired about the potential outcomes, aside from the cap being upheld. Mr. Roush said that the court could set aside the housing cap, either in full or by requesting that the Council consider a ballot measure to amend the cap in certain respects. Councilmember Sullivan said the City could potentially face significant changes in the areas where or numbers of development that can occur. Once properties are rezoned to high density residential, developers are provided an opportunity that was not available prior to that rezoning. Mr. Roush confirmed but advised the Council to keep in mind that even in the event that all units provided for the 2007 -2014 RHNA period were built, the City would only be 277 units over the 29,000 unit cap. He said that one of the arguments to the court in defense of that cap is that while the cap may be exceeded, that small amount does not really exceed the regional impact. Councilmember Sullivan noted that the housing cap may not be available to deal with subsequent RHNA periods. City Council Minutes Page 18 of 21 November 3, 2009