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In fact, they were able to take out the 23 units per acre portion of that property and just leave the 7 acres at 30 units per acre, resulting in a reduction in the total units per acre. He said the Nearon site (9) was designated at 23 units per acre and because they need more acreage in the 30 units per acre, this site was increased to 30 units per acre. The only other changes made were the two Sunol Boulevard sites (19 and 20) which had both been included at the 23 units per acre density. These were no longer necessary and removed. When totaling all sites, they are just 3 acres over what is needed. Staff believes this list meets the criteria outlined earlier and is a good list to move forward. He asked for feedback in order to fine-tune it as necessary and prepare all documents. Mr. Dolan noted that correspondence was received; the Citizens for a Caring Community letter included a comment that the City may count only 130 very low income units on the 3 Hacienda sites. Staff has left open the possibility on the Roche site that all units could be affordable just like any of these sites. The City does not know who the developer is and it could very well be someone who wants to do a greater percentage of what is included in the settlement agreement. They cannot go below 15% in the agreement, but it could go higher than this. He said the implication for Citizens for a Caring Community (CCC) is that the City is carrying too much at low income, and staff respectfully disagrees with this comment. A related issue is that guidelines restrict affordability to 130 units, and staff believes it can go higher depending on what is brought forward on Roche. Mr. Dolan said the staff report focuses discussion on the sites. There are many things that were included in the HCD letter that requires additional analysis and details. Staff may have misled the reader of that report to think that staff did not think those things were important; however, staff is working on those and they will be brought forward in the two public hearings. Staff is not omitting or dismissing anything as unimportant, but simply wanted to focus tonight on the sites. In some cases, staff is still frantically working to address them, given the deadline. He said the next issue has already been explained; not needing the 23 units per acre and this is something staff supports. CCC restated the issue that all of HCD's comments should be considered and responded to, and staff agrees with this. The next letter is from the East Bay Housing organization. Some comments had some overlap with the CCC letter. They made the point that staff should be considering more heavily the tax credit allocation committee criteria which was a set of criteria staff was required to evaluate its list of sites against. It was asked for in the settlement agreement and the City agreed to it. In fact, he said criteria used at the task force level had a lot of overlap with this particular criteria and staff does not believe it has done anything in the selection of sites to jeopardize people's tax credit applications. In fact, a high percentage of sites on the final list are the highest ranking, and staff believes this has been incorporated into the decision-making process. CCC also suggested that other communities have used an Overlay Zoning District tool. In response, the draft Housing Element will include a program that recommends the City adopt development standards and design guidelines for multi-family housing within six months of the Housing Element's adoption. Staff has not held public dialogue about what those will be and six months is needed. The starting point is similar to what was done for the Hacienda process and he does not believe they would be all that different than what occurs in an overlay. They may possibly become an overlay district after discussion, but he felt it premature to say it will at this time. In terms of next steps, the Planning Commission's consideration of the final EIR, Draft Housing Element and sites will be next week, on December 14, 2011. This will be brought back to the Council for certification of the EIR, introduction of the ordinance to rezone sites and on a few, a General Plan Amendment. On January 10, 2012, staff would hope to hold the second reading for the ordinance for rezonings and final adoption of the Housing Element. If kept to that schedule, they will meet their deadline. Commissioner Olson said once they meet the mid-February deadline, it goes to the State and an unknown right now is whether the State will approve everything on the list. Mr. Dolan said this is true; City Council Minutes Page 5 of 18 December 6, 2011