The Dalles City Council will continue its hearing on the appeal of a Planning Commission decision to approve a high density residential subdivision on seven acres at East 10th and Richmond next Monday night.  That after spending nearly three hours hearing reports from and asking questions of city staff, applicant Legacy Development Group, and appellants who believe it is incompatible with the surrounding area, and that traffic impacts have not been sufficiently studied.  Attorney Chris Crean, who is advising the Council on the subject, pointed out that the application has to be reviewed on criteria and zoning in effect today, noting compatibility standards that had been in many municipal land use regulations have been struck down by state law.  The hearing will be continued next Monday at 5:30 p.m., beginning with public testimony.