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Vice -Mayor Thorne said he would support the measure but has concerns over how this will be <br />funded once the program is broadened. He has difficulty envisioning an election process funded <br />by tax dollars. <br />Councilmember Cook Kallio said one of the issues with a voluntary program like this is that <br />money will be driven into areas that cannot be identified. Without widespread reform in a <br />number of areas, that money may be driven underground. She indicated this is a pilot program <br />and she will wait to see what happens. <br />Mayor Hosterman said she has the same concerns but is willing to support the pilot program. <br />MOTION: It was m/s by Cook Kallio /Sullivan to adopt the resolution in support of Proposition 15, <br />the California Fair Elections Act, as presented. <br />Ayes: Councilmembers Cook Kallio, McGovern, Sullivan, Thorne, Mayor Hosterman <br />Noes: None <br />Absent: None <br />16. Overview of Urban Habitat Litigation, effect of Judge's Order, and Potential Next Steps <br />City Attorney Lowell presented the staff report, stating that staff learned of the judge's order in <br />the Urban Habitat litigation on March 12, 2010. Staff, legal counsel, and the Council have been <br />reviewing the decision and have met in Closed Session on several occasions to determine how <br />to proceed. He said that both staff and the Council feel it is important to speak publicly on the <br />matter so that residents and concerned individuals can better understand the ruling, as well as <br />the decisions the Council is now facing. He advised that as there is still existing litigation, certain <br />aspects of the case still cannot be discussed in public. He introduced special defense counsel <br />Tom Brown of Hanson Bridgett. <br />Mr. Brown stated that the case is an intersection between local and state law, involving a <br />challenge to two of the City's fundamental growth management strategies the voter approved <br />housing cap and the City's Growth Management Ordinance (GMO) as well as to the legal <br />adequacy of the 2003 Housing Element and the implementation of all land use laws. He <br />provided a history of the issue, stating that in 2006 the advocacy group, Urban Habitat, met with <br />the City Manager and former City Attorney to discuss the allegation that existing growth <br />management laws and the implementation of the Housing Element conflicted with state law <br />affordable housing obligations. The claim was made that the City's cap, the implementation of <br />that cap, and the GMO are inconsistent with the Housing Element law, which contains specific <br />requirements on what cities must do to identify sites that will be made available to <br />accommodate affordable housing allocations. He briefly reviewed the role of the Association of <br />Bay Area Governments (ABAG) in the assignation of Regional Housing Needs Allocation <br />(RHNA) numbers and explained that the claim was made that the City's housing cap and GMO <br />prevented the accommodation of third planning period RHNA numbers. In addition, a claim was <br />made that Housing Element Program 19.1 stated the City would accomplish rezonings to meet <br />RHNA requirements by July 2004. For a variety of reasons, the City was not able to accomplish <br />that but has always maintained its intent to carry that forward. <br />Mr. Brown stated that the City respectfully disagreed with Urban Habitat's claims and in <br />November 2006. A lawsuit was brought by both Urban Habitat and Sandra De Gregorio, a local <br />mother who claimed a need for affordable housing that was not being met by the City. Both <br />plaintiffs made the claims previously described as well as claims that the City had failed to carry <br />City Council Minutes <br />Page 10 of 22 April 6, 2010 <br />