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She said the Initiative proposes two different policies to be added to the General Plan; 1) a policy regarding hillside development; and 2) a policy regarding housing units. For the policy regarding hillside developments, the Initiative prohibits housing and structures on slopes of 25% or greater, or within 100 feet of a ridge line. The Initiative also prohibits grading and construction of residential or commercial structures on 25% or greater slopes or within 100 feet of a ridge line. But, the Initiative does have an exemption for projects of 10 or fewer units. The second element of the Initiative relates to housing units, the definition of which is any unit which includes a bathroom and a kitchen. The Initiative specifically says a kitchen is where there is a sink, a cooking device, and a refrigerator. And a bathroom is where there is a toilet, tub, or shower. Regarding the report's analysis of the hillside policy, the hillside policy will have effects on development in the community specifically that housing developments will be reduced in the hillside area. And, because the Initiative was not specific about what was a hill area based on its discussion about steep slopes and ridge lines, it will apply to the areas west of Foothill Road, Happy Valley and North Sycamore. It is estimated that approximately 119 to 224 units would be not developed in the hill areas based on the Initiative, and this was based on staffs analysis of the slopes in those areas, as well as what staff understands the term ridge lines and other development limitations. The Initiative, while it would reduce housing units in the hill area due to its restrictions, would have a limited impact because the Initiative itself includes the provision that housing developments of 10 or fewer units are exempt from the Initiative. As discussed in the report, these units do not simply disappear from the community, but rather they would move to other areas of the community, more likely flatter, infill areas such as Hacienda Business Park, or other areas where there is already potential redevelopment such as the downtown. These are not what staff would call classic density transfers. The property owners in the hillside area do not receive a benefit from the reduction in density, rather the density simply moves by the nature of the Initiative without any credits being provided to those property owners in the hill area. The report indicates that because the number of units being changed isn't a large number compared to the total number of units citywide, there is not a citywide traffic impact. In studying the hillside Initiative policies, there was a discussion about the definitions in the policy and how those would be implemented in the community with a need to define slope, ridge lines, and structures, as well as determine what would be the effect of the Initiative on different types of development, particularly with regard to hillside roads and how the language of the hillside policy would be interpreted and applied. The report recommends that Council would need to consider adopting or implementing an ordinance to clarify these regulations and policies, including adopting specific definitions for issues such as slope, ridge line, and structure, and describe a method to actually measure slope as well as address all the issues that were discussed on May 20 regarding hillside development. Issues were also raised regarding grading styles and split pad or flat pad, how to determine building heights, water issues, visibility, and floor area ratio. Ms. Seto said in addition to hillside policies, there are issues regarding housing units which is second part of the report. And then the issues about how the language of the Initiative would apply to second units, assisted living units, or extended stay hotel rooms. The Initiative tells the Special Meeting Minutes 2 June 26, 2008