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conformity with development standards and design <br /> guidelines. <br /> 7.3.5 Phase IV Project Approvals <br /> (a) In processing Phase IV development applications, the <br /> City will use its discretion to adopt conditions relative to <br /> interpretation of design standards and design guidelines <br /> but shall not deny a PUD application for a housing <br /> development on the three Hacienda Sites that meet the <br /> core and non -core development standards and /or design <br /> guidelines, and in accordance with Government Code <br /> §65589.5 shall not condition a project in a manner that <br /> makes it infeasible. <br /> 8. CLIMATE ACTION PLAN <br /> 8.I No later than February 17, 2012, the City will adopt a Climate Action <br /> Plan. The City shall prepare a Supplemental Environmental Impact <br /> Report ( "SEIR ") for the Climate Action Plan. <br /> 8.2 On July 20, 2010 the City approved a professional services agreement, <br /> incorporating a July 8, 2010 Revised Scope, Budget and Timeline for <br /> Pleasanton Climate Action Plan: General Plan Update and Housing <br /> Element Environmental Documentation with ESA, a consultant for the <br /> preparation of the Climate Action Plan and SEIR. The proposal upon <br /> which that agreement was based, which the City has provided to Plaintiffs <br /> and Intervenor, is attached hereto as Exhibit D. The City will implement <br /> the Scope of Services as proposed; provided, however, that the City stay, <br /> in its discretion, and after providing advance written notice to Intervenor <br /> and Plaintiffs, modify the Scope of Services in a manner that does not <br /> prevent the City from fully addressing the allegations raised by the <br /> General Plan /CEQA litigation. <br /> 8.3 The Climate Action Plan will address the allegations raised by the <br /> GENERAL PLAN /CEQA LITIGATION, as spelled out in the Scope of <br /> Services. <br /> 8.4 The Attorney General's Office has interpreted CEQA and its Guidelines to <br /> require that the City analyze its GHG emissions and reduction strategies <br /> for the life of a project (through 2025 for the City's General Plan), and to <br /> require that the City measure GHG impacts against physical <br /> environmental conditions as they exist at the time a Notice of Preparation <br /> is published, not against a "business as usual" scenario. The City <br /> acknowledges, but is not bound by, these interpretations, and shall <br /> consider drafting the SEIR to be consistent with these interpretations. <br /> Settlement Agreement and Covenant Not to Sue - Page 8 of 5 2506199.1 <br />