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She said she and Councilmember Thorne are on the liaison committee with the school district and attention should be paid about how children are educated in the community. The City made a commitment to work with the school district in terms of how this will impact schools and it will be helpful to commence with the East Side Specific Plan because there is an opportunity to make this a gateway for the City. She thanked everybody for coming to the City and participating. Mayor Hosterman said she agrees with comments made by Councilmembers, and echoed Councilmember Sullivan's concerns. She thanked everybody for their participation and appreciated hearing from speakers. She said the Council is trying to balance the needs of the community to the best of its ability. She briefly described the difficulty in dealing with the lawsuit and said the Council will do what it can to do the right thing in addressing the needs of the entire community and not let the towr's quality of life slip. Mayor Hosterman asked staff to present the second part of Agenda Item 16, which is to consider goals, policies and programs to include in the Draft Housing Element. Ms. Stern gave the staff report, stating that the goals, policies and programs in the existing 2003 Housing Element meet the City's needs and the Housing Element requirements; however, there are changes recommended to address the new housing needs, new housing law and some of the settlement agreement items. She said staff presented the information to the Housing Task Force and will return again to them next week. She requested the Council's input on some of the changes contemplated, as follows: Adding Program 12.5 to review the City's condominium conversion ordinance to identify changes made to minimize the impact and displacement of low income tenants. There have been no requests to convert condominiums in the last couple of years but anticipate they may come up in the future. Councilmember Sullivan clarified that staff was proposing to add Program 12.5 back into the goals, policies and programs of the Housing Element. Councilmember McGovern noted it is included in Policy 12 which begins with regulation of condominium conversions, and she clarified that staff was adding to this section. Ms. Stern said yes, it is to identify the changes made to minimize impacts of displacement. Add a new Program 20.2 to coordinate public information with surrounding communities in an attempt to minimize the effort required to identify affordable housing opportunities and programs in the region. They recognize there are similar housing needs in adjacent communities and often can provide services and information on a regional scale. For example, staff found they have been able to provide counseling to people through the Housing Opportunities Center, particularly who are first time homebuyers. Add a new Program 21.2 reviewing the City's inclusionary ordinance to determine the feasibility and benefits of potentially increasing the affordability requirements for multi-family developments of more than 15 units, making this more consistent with the Housing Element and other affordable housing requirements, and identifying incentives for new development to include 3 bedroom units for large families. This is a settlement agreement item. City Council Minutes Page 15 of 19 May 3, 2011