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The following discussion addresses the two issues that were of most interest during the Planning Commission review. Lot Sizes The Happy Valley Specific Plan sets a minimum lot size of one acre for properties that are located in the PUD-SRDR district. However, it also states that the site development standards (lot size, dimensions, building setbacks, etc.) may vary for "unusual site conditions as long a(s) any new standards are consistent with the intent of the Specific Plan." (page 26) The project site is unique in that a seasonal drainage bisects the property and that the southwestern portion of the site shows evidence of land movements in the recent past. The PUD development could be proposed in a manner that the property lines for Lots 1 through 4 extend through the seasonal drainage until they meet the site's western boundary in order to meet the one-acre lot size minimum. Instead, the proposed development recognizes the site's unusual conditions and leaves the environmentally sensitive areas undisturbed. Staff finds that this design approach merits the exception to the one-acre minimum lot size required by the Specific Plan. Open Space The proposed 5.44-acre open space parcel includes 0.21 of an acre of jurisdictional wetland and an existing steeply sloped area that contains sloughing soils. The project would add a road accessing the home sites with a bridge crossing the seasonal drainage, and a stormwater detention area to the open space area. Due to the geological and wetland issues, staff concluded that it would not be advisable for the City to take over the ownership and related maintenance responsibilities of this open-space parcel. Please refer to the January 14, 2009 Planning Commission staff report (Attachment 5) for a more detailed discussion of this issue. PUD FINDINGS Please refer to the Planning Commission staff report, pages 11-14 of Attachment 5 for a discussion of the findings needed to approve the proposed PUD development plan. PUBLIC NOTICE Notices regarding the proposed project and related City Council public hearing were mailed to the surrounding property owners and occupants within a 1,000-foot radius of the project site, as well as the property owners and occupants of the entire Happy Valley Specific Plan Area. A map of the noticing area is attached (Attachment 7). The public notice was also published in the local newspaper. ENVIRONMENTAL ASSESSMENT A draft Negative Declaration has been prepared for the proposed project. The Negative Declaration was also sent to the State Clearinghouse. A letter from the Clearinghouse Page 5 of 6