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0 a valid Certificate of Liability Insurance certificate naming the City and Ponderosa's Homeowners Association as additional insureds. • Responsibility for scheduling the use of the clubhouse would be determined by the Use Agreement. However, the City would not be responsible for any damage to the clubhouse that may occur as a result of the use of the clubhouse by the Valley Trails Residents. • Ponderosa's Homeowners Association will be required to indemnify and hold the City harmless for any administrative, legal or equitable actions arising out of the use of the clubhouse by the Valley Trails Residents. The development agreement has a 10-year term. The developer would be obligated to pay the applicable development impact fees which are in effect when the ordinance approving the agreement is effective. As set forth in Section 4.1 of the development agreement, the developer will pay development impacts fees at the rate in place when building permits are obtained (as such fees are subject to regular cost-of-living adjustments), but the project would not be subject to new impact fees which were not in place when the development agreement goes into effect. The agreement also ensures that the developer will abide by all requirements of the approved affordable housing agreement. The draft development agreement is included in Attachment 4. Growth Management Agreement The City's Growth Management Ordinance (GMO) regulates the number of residential building permits that can be issued each year to assure a predictable growth rate while providing housing and currently allows a total of 235 Growth Management Unit Allocations (GMUAs) to be issued per year. To date in 2017, a total of 59 GMUAs have been issued. The proposed development would require 36 GMUAs. In recognition of the desire for metered growth in the community and consistent with the applicant's desired construction schedule, the Growth Management Agreement would grant 18 GMUAs in 2018 and 18 GMUAs in 2019. If the Council approves the requested GMUAs, a total of 77 GMUAs would be issued to-date this calendar year, below the allocation limit. The Growth Management Agreement for the project is included as Attachment 7. HOUSING COMMISSION RECOMMENDATION On November 11, 2016, the Housing Commission passed a motion recommending that the City Council approve an alternative fee proposal for affordable housing which would require the applicant to pay $948,013 in affordable housing fees at the time of building permit issuance. Please see the attached Housing Commission staff reports and meeting minutes in Exhibit H of Attachment 9 for additional details and discussion. PLANNING COMMISSION RECOMMENDATION The Planning Commission held a public hearing on April 12, 2017 to review the proposed project and receive public comments. The staff report and excerpt of the draft minutes from this meeting are provided in Attachments 9 and 11. By a 3-2 vote (Commissioners Allen and O'Conner opposed), the Planning Commission recommended approval of the project with the following revisions to the staff-recommended conditions: • No. 7 - require architectural details on all four sides of the clubhouse building; Page 18 of 20