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Councilmember McGovern asked if new development pays more towards the cost of CIP projects in Zone 7 than the current ratepayer does. Mr. Martin said yes; their connection fee is used for expansion of the system to make it bigger. Councilmember Cook Kallio said she is assuming Zone 7 has costs that are passed on to them from some place else. She questioned who has control over those rates and how does the process work. Mr. Martin said the Department of Water Resources controls the water coming to Zone 7, and then there is the delta issue. In Zone 7's defense, they are only a piece of that. There is an $11 billion bond that does not include infrastructure for a bypass. There are a lot of costs in California because the water system has not been upgraded in 50 years and population has risen significantly. Vice Mayor Thorne questioned if something in the motion should be included having staff work with the agencies and other boards for cities to try and absorb LAVMA. Mr. Fialho said they have discussed this at liaison meetings and he cautioned the Council that the item was not agendized. However, he acknowledged that all Councilmembers do support some form of consolidation, especially at LAVMA and for the record staff can work with Vice Mayor Thorne and board members to achieve this objective. MOTION: It was m/s by Sullivan/Thorne to introduce Ordinance No. 2002 approving sewer rates and amending Municipal Code Section 15.20.180 to place sewer fees in the Master Fee Schedule and to adopt Resolution No. 10 -371 approving water rates. Motion passed by the following vote: Ayes: Councilmembers Cook Kallio, McGovern, Sullivan, Thorne, Mayor Hosterman Noes: None Absent: None BREAK Mayor Hosterman called for a break at 9:28 p.m. and, thereafter, reconvened the regular meeting at 9:35 p.m. 15. Public Hearing: PUD- 87- 19 -03M, Dr. William and Lydia Yee Consider the application, initial study, and mitigated negative declaration for a major modification to an approved Planned Unit Development (PUD) to allow four custom lots, custom lot design guidelines, and off-site construction on an approximately 29.8 -acre site located at 4100 Foothill Road. The subject property is zoned PUD LDR /RDR /OS (Planned Unit Development Low Density Residential /Rural Density Residential /Open Space) Director of Community Development Brian Dolan gave the staff report, a description of the project site and said the General Plan designation for the site which is a combination of low density residential and rural residential. The General Plan density mid -point would allow a total of 13 units on the site and the proposal is for 4 units. The zoning is Planned Unit Development which also includes designations for low density residential, rural density residential, and open space. With the 29.8 acre site, it is an average of 7.45 acres per unit. He presented a graphic of the lot breakdown, building pad areas which range in size. Regarding a comparison of the 6 lot proposal and the 4 lot proposal, there is approval for a 14 lot PUD on this site approved in the late 1989, which is still valid; however, its feasibility is somewhat questionable and the tentative map has expired. More recently, there was a proposal for a 6 lot PUD. Staff brought this forward to the Planning Commission and recommended approval. Following the hearing and recommendation for approval by the Planning Commission, City Council Minutes Page 7 of 16 June1, 2010