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Retention Fund. The second payment will be addressed as part of the operating budget for Fiscal Year 2011 -12. He noted the Attorney General's office has opted not to claim litigation fees. He reviewed enforcement provisions, which are deemed equally important by all parties. The City has agreed that the court will retain jurisdiction to effectuate provisions of the settlement agreement until all matters are complete. The City has created a process whereby if the petitioners are of the opinion that the terms of the agreement are not met, they would provide the City with notice of such and meet with staff fourteen business days prior to seeking judicial enforcement. Mr. Bocian discussed the previously approved Hacienda rezonings, noting the agreement pertains only to these three sites and not the entire Hacienda Business Park. Mayor Hosterman said there was a point in the settlement discussion where the negotiating team sought to understand what would work in terms of affordable housing numbers and densities on these sites. Four local for - profit and one non - profit developer joined them for a number of discussions to help understand the issue and she thanked them for sharing their expertise and knowledge. Mr. Bocian reiterated that one of the agreed upon actions is removal of Section 5 from Ordinance No. 1998. Mr. Fialho said this gets to the objective of ensuring the continuance of the Hacienda Task Force and PUD process but does make concessions in the form of an accelerated time frame. Mr. Bocian reviewed the five step development process for the three sites as follows: 1) approval of core development standards; 2) development of non -core development standards and guidelines in cooperation with the Hacienda Task Force; 3) adoption of PUD ordinances that incorporate core and non -core development standards and guidelines; 4) processing of applications; and 5) project approvals. Contrary to the City's historical actions, this means the PUDs for the process will be in place and approved by the Council prior to the submittal of applications. The core standards revolve primarily around the sites' ability to provide an adequate amount of affordable housing and are as follows: 1) the developments will be a minimum of thirty units per acre; 2) 15% of all units or 130 units in total will be very-low income at 50% of AMI and this will be memorialized in an affordable housing agreement running in perpetuity with the land; 3) Section 8 vouchers will be accepted as a means of assisting qualified applicants; 4) 10% of all affordable units will be three - bedroom units to address the interest to accommodate large families, 35% will be two- bedroom units and the remainder will be one - bedroom; and 5) the units will be dispersed throughout the development. The Council is free to adopt any non -core standards it chooses, provided they do not conflict with core standards, which likely include guidelines related to project amenities, retail space, and standard planning actions. Following adoption of the PUD ordinances, staff and the Council will review process and review applications for consistency with the core and non -core development standards. He noted the Council will continue to have discretion in adopting conditions relative to the standards and interpretations of the guidelines for these sites. However, the Council cannot condition a project in a matter that makes the project infeasible. Councilmember McGovern said she did not see any discussion relative to environmental review or relevant studies and asked if that would be part of the process. Mr. Fialho confirmed, stating the City will conduct the appropriate environmental review related to all items identified in the term sheet. In addition to an EIR for the Housing Element and CAP, the discussion has been to City Council Minutes Page 9 of 12 July 20, 2010