A. Measure N shall apply to all properties and projects covered by its terms, except it shall not apply to any development project which has obtained a vested right as of the effective date of measure N. For purposes of measure N, a vested right shall have been obtained only if each and all of the following criteria are met:
1. The proposed project has received a building permit or its final discretionary approval;
2. Substantial expenditures have been incurred in good faith reliance on the permit or final discretionary approval; and
3. Substantial construction has been performed in good faith reliance on the permit or final discretionary approval.
B. The substantiality of expenditures incurred and of construction performed and the question of whether or not such expenditures and construction were in good faith are questions of fact to be determined on a case by case basis by the city council following application by the developer and notice of public hearing. Actions taken by a developer to speed up or expedite a development project with knowledge of the pendency of this measure shall not be deemed to be good faith and shall not qualify for vested rights. Phased projects shall be considered for exemption on a phase by phase basis to the extent permitted by California law. For purposes of section 19.04.060 of this chapter, with regard to water or sewer connections outside the city, an applicant shall qualify for a vested right only if the foregoing criteria are met after the application has obtained a sewer or water, commitment, or both if both are required, from the city. (§ 4 of measure N, passed by voters 11-3-1987: § 17 of proposition R, passed by voters 11-7-1978)