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the ordinance will occur next year, the Council is being asked to consider amending the ordinance to include several elements at this time. 1. Amend the annual allocation from a fixed 350 units to one tied directly to the Regional Housing Needs Allocation (RHNA) numbers assigned to the City and the RHNA cycle. If approved, this would take effect with the next RHNA cycle in January 2014. Mr. Bocian noted that the 2,058 units identified in the staff report is the draft RFINA number and may change. Councilmember McGovern referred to section 17.36.060 (D) of the attached Growth Management Program. She asked whether, if the City were to borrow or trade units from another year, there would be some affirmation that the infrastructure is sufficient to support the permits issued and overall RHNA needs. Mr. Fialho said staff could prepare language acknowledging such a process. Councilmember McGovern referred to Section 76.36.090, noting a reference to major project sub allocations that should be removed. Councilmember Sullivan referred to Section 17.36.050, which refers to periodic review of the Growth Management Report, and noted this used to be done yearly. Mr. Bocian said the language recently adopted by the Council is "periodically," which staff implies to mean as the Council determines it to be appropriate. Councilmember McGovern asked how staff expects to determine for the Council that a reallocation of units can be supported. Mr. Fialho said the most appropriate way to do so, particularly in an environment where the City is borrowing from future years' units, is to acknowledge that in the staff reports as they come forward. He reminded her that it is a two-step process starting with project approval, followed by a petition for growth management. In one of those two instances staff would make a recommendation regarding infrastructure capacity and availability. Mr. Bocian continued his review of the proposed changes. 2. Elimination of sub-allocations. 3. Amended language reflecting that the trading and transfer of units from year to year are permitted at the discretion of the Council and providing they do not result in the total number of unit allocations exceeding the number of RHNA units assigned in a given period. 4. Amended language regarding application prior approved units. Mr. Bocian recommended the Council adopt the resolution introducing the ordinance amending Chapter 17.36 of the Municipal code. Mayor Hosterman opened the public hearing and seeing no speakers, immediately closed the public hearing. MOTION: It was M/s by McGovern/Thorne to approve the staff recommendation, as amended. Motion passed by the following vote: City Council Minutes Page 11 of 12 October 16,2012