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conformity with development standards and design guidelines. 7.3.5 Phase IV Project Approvals (a) In processing Phase IV development applications, the City will use its discretion to adopt conditions relative to interpretation of design standards and design guidelines but shall not deny a PUD application for a housing development on the three Hacienda Sites that meet the core and non -core development standards and /or design guidelines, and in accordance with Government Code 65589.5 shall not condition a project in a manner that makes it infeasible. 8. CLIMATE ACTION PLAN 8.1 No later than February 17, 2012, the City will adopt a Climate Action Plan. The City shall prepare a Supplemental Environmental Impact Report ( "SEIR ") for the Climate Action Plan. 8.2 On Jul v 20, 2010 the City approved a professional services agreement, incorporating a July 8, 2010 Revised Scope, Budget and Timeline for Pleasanton Climate Action Plan: General Plan Update and Housing Element Environmental Documentation with ESA, a consultant for the preparation of the Climate Action Plan and SEIR. The proposal upon which ;hat agreement was based, which the City has provided to Plaintiffs and Intervenor. is attached hereto as Exhibit 1). The City will implement the Scope of Services as proposed; provided, however, that the City may, in its discretion, and after providing advance written notice to intervenor and Plaintiffs. modify the Scope of Services in a manner that does not prevent the City from fully addressing the allegations raised by the General Plan /CEQA litigation. 8.3 The Climate Action Plan will address the allegations raised by the GENERAL PLAN /CEQA LITIGATION, as spelled out in the Scope of Services. 8.4 The Auorney General's Office has interpreted CEQA and its Guidelines to require that the City analyze its GHG emissions and reduction strategies for the .ire of a project (through 2025 for the City's General Plan), and to require that the City measure GHG impacts against physical environmental conditions as they exist at the time a Notice of' Preparation is published, not against a "business as usual" scenario. The City acknowledges, but is not bound by, these interpretations, and shall consider drafting the SEIR to be consistent with these interpretations. Settlement Agreement and ovenani Not io Sue - Page 8 of Is =S1h1N91