CITY COUNCIL REGULAR MEETING AGENDA PACKET

Page 2 of 4 Three workshops have been held with the City Council to review and provide direction to staff on the content of the amended IZO on May 7, 2024, August 20, 2024, and most recently, October 15, 2024. See the October 15, 2024, Agenda Report for more information on the content and outcomes of those meetings (Attachment 3). PLANNING COMMISSION ACTION The Planning Commission held a public hearing on September 11, 2024, to review and provide a recommendation to City Council for adoption of the updated IZO (PMC Chapter 17.44) and related amendments to PMC Chapters 17.40 and18.38, and the 2023 Objective Design Standards for Housing Element Sites. By a 4-1 vote (Mohan voting “no”), the Planning Commission recommended that the City Council approve the amendments as recommended by staff. As described below, the Planning Commission suggested more information be provided to City Council to support recommendations concerning minimum unit sizes. This information was provided to the City Council at its October 15, 2024 meeting, along with recommended adjustments to the minimum unit sizes as reflected in the draft ordinance. DISCUSSION The City Council reviewed a redline draft of the proposed amendments at a workshop on October 15, 2024, at which there was discussion with staff with respect to the details of the proposed amendments, although no changes were directed by City Council. As such, please refer to the October 15, 2024, agenda report, which discusses and outlines in detail, the proposed amendments and substantive changes, including revisions made following the Planning Commission meeting and action. It should be mentioned that since the City Council reviewed the proposed amendments on October 15, 2024, minor edits were made for formatting, referencing the appropriate section under state law, and use of consistent terms and definitions in the proposed amendments. Attachment 1 includes the text of the draft ordinance, inclusive of changes to Chapters 17.40, 17.44, and 18.38. Attachment 2 includes the resolution to amend the Objective Design Standards for Housing Element Sites document, consistent with the proposed amendments to the PMC. In brief, amendments include the following key changes: IZO: Modifications to Inclusionary Rate and Target Affordability For Sale / Single-Family Projects (attached and detached) • Establishes a 15% Inclusionary Rate, at 120% AMI (moderate income). This is a reduction from the current, 20% inclusionary rate. Rental / Multifamily Projects • Retain 15% Inclusionary requirement, at 50% AMI (very-low income) and 60% AMI (low-income). For all residential projects, modify minimum threshold project size required to construct on-site affordable units from 15+ units to 10+ units. IZO: Other Amendments Page 44 of 658