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overview of its key features, goals, and process. He described the incentives to developers that are established by the proposed Ordinance. He noted that the Ordinance includes language related to Commercial, Office, and Industrial development, which encourages CO1 developments to submit an Affordable Housing Proposal. hi response to a question from Commissioner Arkin, Mr. Bocian confirmed that the proposed Ordinance does not change the current in-lieu fees. Mr. Bocian reported that an extensive study was conducted a few years ago and this is as high as the fees could legally be assessed based on the study. Commissioner Arkin asked about the criteria used to select the owners or renters of affordable units. Mr. Bocian reviewed the priority rating system that is in place. In response to an inquiry from Commissioner Roberts regarding areas that are zoned for large lots where affordable units may not he feasible (such as the West Foothill area), Mr. Bocian noted that the developer is still required to submit a proposal, but the proposal would probably be that the development will need to pay the in-lieu fees. He noted that the Ordinance sets forth a much clearer process that must be followed and requires the applicant to submit the Affordable Housing Proposal for the project at the time the project application is submitted to the Planning Department. Commissioner Sullivan advised that he thinks there will be objections by the development community because of another step in the approval process. Mr. Bocian advised that the Economic Vitality Committee had reviewed and approved the proposed Ordinance. He noted that the Chamber will also be reviewing it. Commissioner Maas inquired as to the legality of making affordable units in the Kaiser project primarily available to the workers at that site. Staff advised that Ms. Seto is looking into this concept to see if can be accomplished. Commissioner Arkin stated that he would like to see higher in-lieu fees, noting that Livermore has increased its fees to $10,000. He also advised that the would like to see more teeth in finding a way to develop commercial areas where people can get to work without having to use the freeways to get to work. Commissioner Sullivan suggestgxi that the lang~age should be changed from "encouraging" to "requiring" COl development to provide affordable housing for 15% of the project's housing demand either within the development or somewhere else within the City. Commissioner Maas stated that she feels the proposed Ordinance achieves the objective of addressing the intent of the Inclusionary Zoning Ord'mance. In response to an inquiry from Chairperson Roberts as to whether "granny flats" are considered as affordable units, Mr. Bocian advised that this is not stated in the ordinance, but it can be part of a proposal. Discussion ensued regarding second units being considered as affordable units and ABAG's position on this concept. PLANNING COMMISSION MINUTES March 22, 2000 Page 8