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Commissioner Olson inquired what "first-come, first-served" meant, whether the lots were part of an allocation already made underthe housing cap, and if those two concepts were related. Ms. Soo replied that the houses are within the City's housing cap and the Happy Valley Specific Plan. She explained that the City has a Growth Management Program, and if all the allocations have been used, an applicant may need to wait for the following year. She noted, however, that staff does not anticipate this to occur as there are only five custom home sites. Commissioner Olson inquired if "first-come, first-served" means that if the housing allocation cap is reached, the applicant would not be allowed to pull permits. Ms. Seto confirmed that is the case. With respect to "first-come, first-served," she explained that this relates to the City's Growth Management ordinance where there is a set number of building permits which can be issued each year for residential uses. Commissioner Blank stated that he believed the lots were already accounted for in the housing allocation and that the number has been reserved even if the City were to hit the housing cap. Ms. Seto confirmed that this number of units was allocated to Happy Valley; however, the timing of their construction would be affected by other parts of the City and whether there are other sites that are rezoned to allow more density. Commissioner Fox referred to the maximum density of two acres per lot and the minimum lot size of one acre on page 5 of the staff report. She inquired why Lots 2 and 3 are .81 acre and .83 acre when the minimum lot size is one acre. Ms. Soo replied that while the while the Happy Valley Specific Plan requires that the density in the project's zoning district is one lot per two acres and each lot size is to be a minimum of one acre, the Plan also includes flexibility to allow the lot size, configuration, or lot dimensions to be smaller or less than what is specified in the Plan, provided that the project conforms to the intent of the Plan. She added that in this particular project, the one-lot minimum requirement could be accomplished by going through the creek across the lots; however, she indicated that staff believes that from a planning standpoint, this is not the preferred alternative and that staff would like to reserve the open space area to include the entire creek for creek preservation as well as maintenance purposes. She noted that staff has determined that from this perspective, the proposal with lots smaller than one acre meets the intent of the Specific Plan. Commissioner Fox referred to seasonal drainage and inquired how this would work and the possibility of flooding. She further inquired if there would be grading to put this in some sort of gully or if it would this way. Ms. Soo replied that there would be no grading on Parcel A and that a bridge would be built across the seasonal drainage as required by the Water Board and the Army Corps of Engineers regulations. She added that an environmental consultant will review the detailed design work and that all work will be permitted by various PLANNING COMMISSION MINUTES, January 14, 2009 Page 6 of 35