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Councilmember Pentin said the City has a job/housing imbalance in a regional context. Councilmember Narum stated the City needs to prepare for some of the legislation that has been enacted to position itself better. Director Beaudin advised there are some things such as the legislative platform to get the City through in the next four years and well positioned from a regulatory perspective. Director Beaudin advised that based on AB 1600, the City is in good shape from an impact fee perspective, in response to Councilmember Narum's inquiry. He believes the City will continue to see legislation that looks to reduce, cap, or eliminate the City's impact fees. Councilmember Narum inquired about reviewing the California Environmental Quality Act (CEQA). Director Beaudin advised that conversation can happen from a regional perspective and then carry that conversation to the local level if the City wants to go farther than its regional partners. Councilmember Narum asked the City Attorney Daniel Sodergren to clarify preponderance and substantial in the context on this item. City Attorney Sodergren stated a substantial evidence test strongly favors the City and a decision based on a substantial evidence test will be upheld as long as the City has valid evidence. He clarified that preponderance of test is a weighing test which means a judge can weigh which argument is better. He also noted it is based on the specific piece of legislation. Councilmember Pentin inquired if the above-moderate in RHNA numbers, -597, is skewed because some of those developments were allowed to put money into the low-income housing fund, donate to parks, etc., thus not having to build the low-income units in those developments. Director Beaudin concurred and noted these are market rate housing projects which have met the threshold the City Council set for the project. He noted this will change in the future. Councilmember Pentin inquired about the bill that requires housing units which would be removed from the RHNA list if the City has not developed the sites within two housing element cycles. He noted there are currently 1300 sites sitting by the Sheraton and is concerned they will be removed in the next cycle. Director Beaudin stated he would like to have a conversation with HCD, however, he believes the worst-case scenario would be those would be removed from the list. He noted he will be following other cities, such as San Diego and Sacramento, as they have their RHNA cycles before Pleasanton to see what strategies they employ. Councilmember Testa inquired about the no net loss bill and inquired how the City makes sure that projects approved now yet come online in the next cycle count towards RHNA. Director Beaudin responded that as long as the City meets the criteria at the time, it should be counted in the next cycle. He also reported he has been involved in conversations with HCD to understand the timing. City Manager Fialho stated the City does not have to go above RHNA, and the City would get credit if a development agreement is in place. Director Beaudin stated the City would receive the RHNA number in mid-to-late 2021 to start the planning process. This would include one and a half years, approximately, for the public process and CEQA, in response to Councilmember Testa's inquiry. Councilmember Testa expressed concern as to how SB 50 will impact historic downtown Pleasanton and inquired if now would be an appropriate time to address the situation. Director Beaudin advised that this topic will be discussed at the March 5 meeting along with all other housing-related legislation. Councilmember Testa wants to make sure the City has planned ahead to protect the downtown area. City Council Minutes Page 7 of 9 February 19, 2019