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demolish such a community is not taken lightly and that the decision is made in light of the costs associated with turning aging stock into a viable and improved community. She said it was always the intent to increase the number of senior housing units and that losing the Bernal property only complicated things further. She said that all successful housing projects require that the City already posses the land and be committed to spending considerable additional funds for development. She said that to use these funds to purchase another piece of land takes money away from the affordable housing fund and lacks sense. She said it is imperative that the Council move forward on this project with urgency so that it may capitalize on financing opportunities as soon as they become available. She acknowledged the process would be difficult, urged others not to delude themselves by thinking otherwise, and asked the Council to trust and accept that moving forward is the best it is within their power to do. David Stark, Housing Commissioner and Pleasanton Gardens Boardmember, said his professional life has been devoted to affordable housing issues. He said Pleasanton is a City that demands quality and prefers to be thoughtful in its decision making process. He said that care is clearly reflected in the six -year process leading up to this point and asked them to consider whether the lifestyle of current residents is appropriate or of the quality that the City demands. He said that in reviewing monthly reports on Kottinger Place, he is astounded at what the facility's management is able to accomplish with such limited resources. He noted that neither Kottinger Place, Pleasanton Gardens, nor manager Bruce Feidler are sustainable resources and said the loss of the latter will have a serious impact on the quality of Pleasanton Gardens. He said he is encouraged by the Council's involvement, the questions raised by Councilmember McGovern, and the interest Councilmember Sullivan has shown in this process. He said staff has outlined a powerful process that will ultimately result in much needed resources and asked that the Council not dwell on things like the number of units or stories. Mayor Hosterman closed the item to public comment. Councilmember McGovern reviewed the additions she requested earlier and received confirmation from staff that they would be addressed. She said there are many people who care about the number of stories and many in the immediate vicinity who are concerned about setbacks, noise, and views. She stated frustration that the task force may only have looked at this from the perspective of affordable housing and not from that of neighborhood residents. MOTION: It was m/s by Sullivan /McGovern to approve the Principles of Agreement between the City, Kottinger Place Task Force, and the Pleasanton Gardens Board of Directors, with the additions outlined by Councilmember McGovern. Councilmember Cook- Kallio said she understands there is a sense of urgency relating to the HUD application. She said she would hate to see this project not move forward in a timely fashion and for the City to ultimately end up with less or no affordable senior housing in that area. Mr. Fialho said that is not staff's summation at this time but rather that everything about this project is incremental, sometimes to the dissatisfaction of those involved. He said selection of a non profit developer will allow the additional due diligence to answer that question as well as many others relating to capital costs, maintenance and operations, site placement, and capacity. He assured her staff would be sensitive to time throughout this process. MOTION passed by the following vote: City Council Minutes Page 13 of 15 February 16, 2010