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He reviewed the site architecture and circulation plans, stating that retail uses would be served by 2 new driveways and a 41 space parking lot. Residential access would be served by two existing driveways on Owens Drive which would be slightly modified for the project. He referred to samples on the dais for examples of the proposed colors and materials of the building facades. Mr. Otto stated that the project conforms to most of the applicable housing standards. The applicant has requested three exceptions, which staff supports: 1) to allow perpendicular parking on both sides of the small segment between the community buildings and G3 buildings; 2) to allow half of the residential garage doors to be recessed at 2 feet and the other half at 1 foot, rather than the required 2 feet; and 3) that the retail building depths be reduced from the 40-60 foot requirement to a depth of 31-54 feet. Councilmember Pentin asked and Mr. Otto confirmed that the garage door request is related purely to design aesthetics and does present any safety issues. Vice-Mayor Cook-Kallio recalled that in drafting the guidelines, there depth preference for retail establishments was based on what retail occupants typically require. She asked whether target occupants have been identified and whether depth standards have changed since the guidelines were adopted. Mr. Dolan deferred to the applicant regarding target occupants. He said that much of the concern over retail depth related to projects where the applicant was really less than willing to implement retail and had proposed retail sizes that were more suited to residential uses. Here the applicant has proposed a retail only structure that is designed for retail and will never house a residential use, so staff is comfortable with the variation. Councilmember Pentin asked and Mr. Otto confirmed that variations in depth were allowed for the BRE projects. Mr. Otto reviewed the proposed Development Agreement, which would vest the related entitlements for 10 years and allow the City to use the projects in lieu park dedication fees totaling nearly $2.4 million towards improving City parks, including Phase 2 of the Bernal Community Park. The developer's affordable housing obligations are also included in the agreement. He also reviewed the proposed Growth Management Agreement which would extend the requested allocations for the life of the Development Agreement. Assistant City Manager Bocian presented the proposed Affordable Housing Agreement options. Option 1 provides the deepest level of affordability with more units in the 50% and 80% of AMI range but less than 15% of the total density. Option 2 reaches the 15% affordability target but has a lesser affordability. He called the Council's attention to a memo distributed earlier that day reflecting a change to the unit mix in Option 2. Based on staff's continued efforts to achieve conformance with the development standards, which indicate that 45% of the affordable units be in the 2 and 3 bedroom category, the applicant has redistributed the unit mix without affecting the net number of affordable units. He noted that while Option 2 has a lesser level of affordability, it offers more rent restricted units. Recent trends indicate increasing rents in Pleasanton and that even meeting he requirements of a 100% AMI will most likely require a write down of the market rental rates. Councilmember Brown said 100% AMI sounds like the equivalent of market rate rather than affordable. Mr. Bocian said it depends largely on the community but that a number of the newer apartment projects in Pleasanton are above 100%. Several members of the Council requested clarification on median income. City Council Minutes Page 15 of 23 April 16, 2013