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Councilmember Sullivan requested clarifying language to reflect that while something is a permitted use in a certain district, there is also a required PUD process. Mr. Dolan felt this was explained in the text but said he could also add a footnote to that effect. Mr. Dolan directed the Council's attention to minor changes on page 90, which includes an explanation of how the City's fees relate to development, and page 97, which includes additional analysis proving that the City's growth management ordinance does not affect the cost of housing or overall production of housing. Councilmember McGovern expressed concern that the Growth Management Committee had not had an opportunity to review this information before hand. While staff maintaines that the language is just a summary of existing provisions, she did not believe the set-aside of 50 units per year for affordable housing or the included definition of affordable housing projects was a part of the current growth management ordinance or something the committee had discussed. Mr. Fialho assured her that the 50 unit set-aside is in the ordinance. Mr. Dolan said the portion related to "affordable housing projects" as having 100% affordability is not verbatim, but is information provided by staff relative to historical decisions of the Council. Mr. Fialho said staff could confirm that as part of the Council's action this evening to remove the definition if not included in the existing ordinance. He reiterated that staff was simply attempting to briefly summarize what is a very complicated ordinance that predates most of the settlement agreement with Urban Habitat. During those negotiations, it was very clear that the City cannot discriminate against 100% affordable projects and that this must be made clear in the City's policy documents. Based on comments from the Council and a brief policy provision elsewhere in the Housing Element, staff agreed to take deletion of that sentence under consideration. Mr. Dolan directed the Council's attention to page 105, which includes an argument making the case that the City's Inclusionary Housing Ordinance does not adversely affect the cost or production of housing. Councilmember Sullivan referred to the first paragraph on page 89, which states that "Projects complying with the Development Standards and Design Guidelines will be approved." Mr. Dolan explained that this gets to the heart of the "by right" issue the Council has been concerned with for some time. HCD really insisted on this language and staff's approach with this has been to achieve the desired discretion and protections within the standards and guidelines rather than going to war on this. Staff and HCD worked closely to reach a compromise on this and after review, HCD essentially agreed to certify the Housing Element if this language is adopted. Councilmember Sullivan asked and Mr. Dolan confirmed that this language was not in the Housing Element submitted in February. Councilmember Sullivan asked what is required in order to comply with the settlement agreement with respect to timing. Mr. Fialho said the City accomplished all requirements by adopting the standards and guidelines in September, submitting the Housing Element by a date certain and working towards certification in the September/October timeframe. Councilmember McGovern reiterated the concerns she raised at previous meetings relative to open space for multi-family residential development. She asked and staff confirmed that the Council has the ability to amend the standards and guidelines, if needed. She asked staff to City Council Minutes Page 9 of 12 October 2, 2012