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He reviewed the project's generous landscape plan, which includes more than 1,200 trees. He presented several photo simulations depicting how the project might look from 1-680 with 5 and 10 year growth on the proposed plantings. He noted that in addition to providing more trees, the project's other benefit over the alternative office development is that the actual structures themselves are not as tall, are more in line with the surrounding area, and the existing views of the ridge are preserved. Assistant City Manager Bocian presented the Affordable Housing Agreement, which staff developed consistent with the Council's direction regarding flexibility and creativity in meeting the requirements of the city's Inclusionary Zoning Ordinance (IZO). He noted that staff focused on achieving as much affordability as possible in the rental units as compared to the ownership units and that it has not been the city's practice to aggressively pursue an increase in the stock of affordable ownership homes. As is consistent with the IZO, 15% of the rental units will be made available to low and very low income families whereas the ownership units will pay a lower income housing fee. While the total fee amount of $519,532 is approximately half of what the typical fee would be ($10,713 per unit), staff feels it is a reasonable tradeoff for acquiring a significant number of low and very low income rental units. The terms of the agreement are very similar to what has recently been approved by the Council and include stipulations that the units remain affordable in perpetuity, the project will provide disabled accessible units, the property manager accepts Section 8 rental vouchers, the project is subject to the city's preference system, and that qualification for the units is based on household income. Again consistent with the Council's recent action and staff's practice for a number of years, the agreement differs from the IZO in that it bases a 3-bedroom unit on a 5 person household rather than a 4 person household. The proposed Affordable Housing Agreement is largely consistent with the development standards and design guidelines. The project makes 41% of the affordable units available as 2 bedrooms, where 35% is required. It does, however, fail to technically meet the requirement for 3 bedroom units in that 3% is offered where 10% is required. Staff does feel there are a couple of overriding considerations in that the project meets the overall requirement of 45%, provides a significant number of low and very low income units, does not provide studio units, and the 1 and 3-bedroom units are available at 50% AMI. The project is also largely consistent with the IZO, if not technically then in a way that staff believes meets the spirit of the ordinance. Mr.Bocian stated that the Housing Commission reviewed and unanimously approved the Affordable Housing Agreement and recommended approval to the Council. Councilmember Brown said she was contacted by a local resident concerned that the number of apartment units provided in this project is lower than was originally anticipated, and that this would place an additional burden on the east side in developing lower income units. Mr. Fialho said that was not necessarily true, but that he could really not say until much later in the year as they start to evaluate Regional Housing Needs Assessment allocations and what accommodations will need to be made. He acknowledged that the for sale units have reduced the total number of units used in calculating affordability requirements and that, if still needed, some of those affordable units that were anticipated might need to be moved elsewhere. He did note that there is some indication that this type of housing product won't be needed in the next Housing Element and the obligation will shift more to moderate and above moderate types of housing. Vice-Mayor Cook-Kallio said there is a lack of entry level housing stock in Pleasanton, which admittedly means something different here than it might elsewhere. She asked but staff could not say what the cost of these more modest single-family homes might be. Mr. Dolan stated that the Planning Commission reviewed and unanimously recommended approval of the item to the Council. The actions requested of the Council are to find that the addendum to the Housing Element Environmental Impact Report is an appropriate CEQA document, to make the appropriate PUD Development Plan Findings, find the project consistent with the General Plan, find that the exceptions to the Housing and Site Development Standards and Design Guidelines are acceptable, City Council Minutes Page 4 of 12 September 3, 2013