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MOTION: It was m/s by Brown/Narum to accept Alternative 3. Councilmember Cook-Kallio said she didn't mind a certain level of flexibility, though she felt that all funding for affordable housing should go into the LIHF. She reported that as part of their work on the Pleasanton Unified School District Liaison Committee, they regularly hear about the lack of equity in education across the city's demographics. The district has come to them a number of times requesting funding support, which likely totals several hundred thousand dollars, to provide services that would fill these gaps. She stressed that she would like to dedicate funds to an education-based need while she still serves on the Council and asked that any support of Alternative 2 or 3 include a requirement that some funds be earmarked for the kinds of needs and services identified by the school district. Mayor Thorne pointed out that Alternative 3 would allow the Council to use the funds for any purpose it feels appropriate, including services identified by the school district, and said he would prefer to see all options before making any decisions. Councilmember Brown concurred and said she had no interest in earmarking funds for a specific use at this time. She said the city has a number of priorities, including a library that could help to meet some of these needs, and that she would like to have that discussion before making any firm commitments. Councilmember Narum said she appreciated Councilmember Cook-Kallio's intent and asked if the funds could be used to support services as opposed to housing. Mr. Fialho confirmed, provided that criteria are developed for the type of programming described. He also noted that this is one-time contribution by the developer and cautioned the Council to be mindful of how the funds would be utilized on an ongoing basis. Councilmember Cook-Kallio said she did not believe that the funding required to support the types of programs she described would be significant, yet it would provide an immediate benefit to a broad group of the community's youth. She agreed that a new library is also a very real need, but thought the potential benefits would be a long time coming and not fully address the education gaps that occur in small pockets across the city. Vice-Chair Pentin said he could not support the outstanding motion and offered a friendly amendment to accept Alternative 3 but direct half of the $4.5 million fee to the LIHF and half to a fund to be determined at a later date. Councilmember Brown rejected the amendment. She noted that outside of this development, the city actually has 261 other BMR units that will be coming on line at some point in the future. She agreed that the negotiated fee is a bit of a windfall for the city that could ultimately be used for affordable housing, but said again that she would like to make that determination at a later date. Councilmember Narum said she supported acceptance of the fee largely because she wanted to ensure that the city has enough of a cushion to support some of the programs described in the recent Housing Element Update. She agreed with Councilmember Cook-Kallio that a relatively small amount of money could have a fairly significant impact on a large number of students. However, in fairness to the rest of the Council she acknowledged that they perhaps lack the benefit of the discussions that have occurred at the liaison committee. She suggested that they encourage the school district to prepare a proposal or at least identify what an effective amount of funding would be. Councilmember Cook-Kallio reiterated her concerns that under Alternative 3, the money may very well not be used to support affordable housing issues. City Council Minutes Page 9 of 12 September 16,2014