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LAW OFFICES GILCHRIST 8i RUTTER YHOFESSIONAL CORPORATION Mayor Jennifer Hosterman Vice Mayor Cheryl Cook-Kallio Councilmember Cindy McGovern Councilmember Matt Sullivan Councilmember Jerry Thorne Pleasanton City Council Mazch 31, 2009 Page 3 Propositions and Measures, do not require that a majority of all eligible voters vote their support to be passed. Moreover, Government Code section 66427.5 and case law explicitly prohibit cities from denying an application for Conversion due to low resident support. Section 66427.5 merely provides in Subdivision (d) that an applicant for Conversion conduct and submit a Survey of support. Pursuant to Subdivision (e) of Section 66427.5, local government authority is restricted to determining whether the Survey is conducted and submitted in accordance with the requirements of Section 66427.5. The plain language of Section 66427.5 makes cleaz that cities have no authority to reject an application for Conversion for lack of resident support. In addition, the Court of Appeal specifically rejected the contention that a Conversion application requires any level of resident support for its legitimacy or its approval in EI Dorado Palm Springs, Ltd. v. City of Palm Springs (2002) 96 Cal. App. 4a' 1153, 1181-82 ("El Dorado"). As the Assembly Bill analysis to AB 930, which added the Survey requirement, explains: The results of the survey would not affect the duty of the local agency to consider the request to subdivide pursuant to Section 66427.5 but merely provide additional information. It is foreseeable that the results of this survey could be used to azgue to a court that the conversion is a sham and that the rent formulas in Section 66427.5 should not be applied. The fact that a majority of residents do not support the conversion is not however an appropriate means for determining the legitimacy of the conversion. The law is not intended to allow pazk residents to block a request to subdivide. Instead, the law is intended to provide some measure of fiscal protection to nonpurchasing residents. (Emphasis added.) In Carson Harbor Village, Ltd. v. Ciry of Carson, Los Angeles Superior Court Case No. BS 112239, the Honorable James C. Chalfant held, The City azgues that section 66427.5(d)(5) provides that the results of the survey "shall be considered" as part of the subdivision compliance hearing. How can the City consider the "Survey of Support" if it can not use the results? The answer is that the City is to consider the Survey of Support to ensure it has been prepazed as required. It may not use the results to deny the Application based on lack of a bona frde conversion. That is an issue for presentation in court.