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City Attorney, the City's contract legal counsel and various staff members, for the purpose of attempting to reach a settlement agreement. Numerous negotiations have occurred over the past few months which have resulted in the Tentative Agreement (Attachment 1). The negotiating team has determined that the Tentative Agreement meets the City Council's settlement goals, and as a result, the Tentative Agreement is being recommended for approval. This public hearing provides the public with an opportunity to comment on the proposed settlement terms prior to execution of the settlement agreement. DISCUSSION The Tentative Agreement has been approved by the Petitioners (Urban Habitat and Public Advocates) and the State Attorney General's Office. It will act as the basis for preparation of a settlement agreement that will more specifically memorialize the settlement. Based on the implementation schedule (see Attachment 2), the Settlement Agreement will be presented to the City Council for adoption on August 17. For organizational purposes of this agenda report, a summary of the Tentative Agreement has been separated into terms and impacts regarding those matters Related to the Court Order and those matters and impacts related to resolving the remaining, unadjudicated causes of action in the Urban Habitat lawsuit and the second lawsuit brought by the Attorney General's Office but not prosecuted against the City of Pleasanton (Matters Not Specific to the Court Order). SUMMARY OF MATTERS RELATED TO THE COURT ORDER Housing Cap While the City Council has been well aware of the voters' interest over the years in retaining limits to the number of allowable housing units in Pleasanton, the Court Order states definitively that the City must "cease and desist" from enforcement of its current Housing Cap, and remove all references to the Cap from the City's General Plan. Therefore, in recognition of this, the Tentative Agreement reflects the City's intent to amend the General Plan to eliminate references to the Housing Cap (General Plan Policy 24 and Programs 24.1, 24.2 and 24.3; in addition, several other provisions of the City's General Plan that refer to the Cap also will be deleted). The attached implementation schedule outlines the timeline for steps necessary to amend the General Plan and other actions related to the Tentative Agreement. Alternatives to the Existing Housing Cap Throughout the litigation proceedings and settlement negotiations, the City Council has been cognizant of public concern over amending the General Plan to remove the voter approved housing cap. Unfortunately, it has been determined that the housing cap is no longer consistent with State law because it provides a barrier to appropriately plan (e.g. zone) for regional housing obligations as mandated by the State of California. These requirements are consistently applied to every municipality and county jurisdiction in California. As a result, in this instance, State housing laws now preempt the City's housing cap. Page 4 of 9