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Mayor Hosterman introduced the item, which was originally heard at the Council's last meeting and subsequently failed by a 2-2 vote. Director of Community Development Dolan presented a brief recap of the staff report via PowerPoint, stating that the item relates to the City's response to comments received by HCD regarding the City's Housing Element. HCD's comments focused on Program 9.1 and discussion contained within the accompanying background report. Based on a request from HCD, staff has added language to Program 9.1, which relates to the City's intent to revise its growth management program that commits to creating a more efficient process. With regards to the background report, HCD requested factual information regarding residential development standards for the single and multifamily residential units in all zoning districts. Staff prepared a table (Page 85) that compiles information from previously adopted City documents, including the Municipal Code, as well as the Hacienda TOD Standards and housing site development standards recently adopted by the Council. In addition to the table, staff provided some descriptive narrative on Page 87. One portion of this narrative, which states that "development review of multifamily projects on these sites (referring to the 9 Housing Element sites) by the Planning Commission and City Council will be limited to an evaluation of the project as to its consistency with the Development Standards and Design Guidelines," created some concern at the last meeting. HCD requested additional information on local processing and permit procedures. Staff provided a table on Page 88 and narrative on Page 89 regarding housing types permitted by zone. As with the previous table, all information was compiled from previously approved City documents. The additional text stated that "projects complying with the Development Standards and Design Guidelines will be approved," which also created concern at the last meeting. HCD's next request was for additional information regarding development fees and fees as a proportion of total development costs. Staff provided narrative description on Pages 90 and 91 using fees from the Master Fee Schedule to prove that City fees are not so high as to prohibit the development of affordable housing. HCD also requested information regarding development review procedures and the cost of required improvements. Staff provided additional text regarding the process as well as new information about the possibility of requiring on and off site improvements on Page 94. Lastly, HCD requested an analysis of the impacts of the Growth Management and Inclusionary Zoning Ordinances relative to the cost and production of housing. Staff inserted several paragraphs between Pages 96 and 106 that provide various analyses of how the City's home sales and rate of growth have not really been affected by either ordinance over the period of time that they have been in effect. In making the argument, staff added a phrase about affordable housing projects that generated concern by the Council. Staff considered the Council's position, does not believe the text to be germane to the argument, and subsequently removed the language. Mr. Lowell noted for the record that the public hearing for this item was closed at the last meeting. Councilmember Sullivan thanked staff for preparing a PowerPoint so the public could review the proposed changes. He reiterated his concerns relative to the text on Pages 87 aid 89 and asked how the General Plan, with its various policies on development conditions, infrastructure, and mitigations, fit into this. Mr. Fialho stated that the Housing Element is an element of the General Plan, which has programs and policies that are very specific as to what a development should do if an identifiable mitigation is called out. The nine sites identified in the General Plan that relate specifically to the Development Standards and Design Guidelines referenced in the text in question would also have to comply with the General Plan's programs and policies. City Council Minutes Page 9 of 12 October 16,2012