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(GMO). The city's growth management program is one element of an overall planning environment which sets the maximum number of annual building permits that may be issued for new residential development, for the primary purpose of establishing a predictable rate of growth throughout the community. Prior to last amendment of the GMO in October 2012, the annual unit allocation number was set by the City Council based on a growth management report, with numbers typically ranging from 1,000 to 3,500 units. In 2009, the GMO was specifically amended to allow the 350 unit allocation number in place at the time to be increased if necessary to meet the city's RHNA obligations. In October 2012, the GMO was amended again to tie the annual unit allocation number to the RHNA obligation. The formula set forth in the ordinance divides the number of RHNA units by the number of years in the RHNA cycle. The ordinance stipulates that the City Manager shall provide the Council with a report specifying this number within 90 days following issuance of the RHNA cycle's obligation, which was July 18, 2013. It further indicates that up until June 30, 2014, the city with operate with a growth management number that is consistent with current RHNA. Mr. Bocian stated that the RHNA obligation for the January 2014 to October 2022 planning period is 2,067 units. Using the planning period of 8.8 years, the annual growth management number would be 235 units commencing July 1, 2014. He noted that the ordinance does contain language allowing the Council to adjust that number under certain conditions, provided the total number within the RHNA period remains the same. Mr. Dolan stated that when the ordinance was brought forth in October 2012, staff, the Council and subcommittee discussed the potential need for establishing a priority process in the event that the number of residential development applications submitted in a given year exceeds the growth management number. Staff is recommending that this sort of policy be developed as part of the upcoming Housing Element process. Councilmember Pentin asked how the projects recently approved by the Council relate to this. Mr. Bocian explained that those developments and any other development approved before July 1, 2014 fall into the period in which growth management is equal to RHNA. The Council specifically adopted this policy due to concern throughout the rezoning that the city would constrain those developments. Mayor Thorne noted that this action actually lowers the annual growth management limit. Vice-Mayor Cook-Kallio asked and Mr. Bocian confirmed that projects on the recently rezoned sites that do not forward prior to July 1, 2014 must fit within the new growth management allocation. Mr. Bocian further explained that the approvals for recent projects included Growth Management and Development Agreements that vest the development of those units for a certain period of time. Vice-Mayor Cook-Kallio asked and Mr. Fialho confirmed that even if a developer was to have a project in the pipeline for the last seven or eight years, they would be subject to growth management after July 1, 2014. Mr. Fialho clarified that a Growth Management or Development Agreement could exempt them from the allocation. He said it is very unlikely the city would even encounter such a situation or not be able to accommodate them within the 2,067 units allocated for the planning period. Councilmember Brown referred the Housing Element booklet's section on the Growth Management Ordinance which outlines a sub-allocation based on project type. She noted that staff did not supply a redline version of the ordinance including proposed modifications and asked whether the new ordinance would contain a similar breakdown. City Council Minutes Page 12 of 14 October 15, 2013