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Mayor Thome asked if the Council could elect to not to allocate Growth Management until building permits are issued on just the one project that might be presenting this sort of issue. Mr. Fialho reminded him that this is an ordinance and can be modified by the City Council to address that particular situation if it were to present. He also explained that the Council also choose to approve a PUD but state in the conditions of approval that Growth Management is not granted until the start of the next RHNA cycle. Councilmember Pentin said he did not wish to borrow from future RHNA cycles but also expressed concern that asking a project to wait until there is a sufficient growth management allocation could compromise an affordable project's ability to obtain funding. Councilmember Narum said she read the proposed language to mean that the Council is obligated to approve the affordable units within a project, regardless of whether or not growth management allows for those units within the current planning cycle. Mr. Bocian reiterated that nothing in the GMO, as proposed, would obligate the Council to approve a project of any kind. However, the Council would have to approve the Growth Management Agreement for the units once the project is approved. Mr. Dolan also reiterated that HCD's approval of the Housing Element required the city to adopt a program to address the remote possibility that the GMO could prevent affordable units from coming forward. This language, which could perhaps benefit from further clarification, is an attempt to do just that. Councilmember Narum referred to Subsection C of the draft ordinance, which discusses the Council's ability to exercise discretion if it feels there is not sufficient infrastructure to support a development. She requested clarification, noting that the Council has been told repeatedly that it cannot use the lack of schools or other public infrastructure to deny a project. Mr. Bocian explained that the current GMO contains provisions for a growth management report, to be prepared at the request of the Council if concern exists, which the Council can use to determine that infrastructure issues are such that it would choose to modify the number of growth management units to be allocated annually. He clarified that the Council cannot deny a project based on these issues but rather can amend the number of units that are allocated annually. Mr. Fialho also explained that the report can be used as a basis for negotiations with developers to secure increased contributions to meet the identified impacts. Councilmember Narum asked if such a report has ever been prepared for the Council. Mr. Fialho said one has not been produced in the last 10 years, largely because the 2 latest rounds of the Housing Element contained a comprehensive Environmental Impact Report that analyzed the infrastructure constraints and because the city saw very little development for a good period of time. Vice-Mayor Brown recalled that Measure PP defined a housing unit as having a kitchen, bed and bath. She asked whether the annual unit allocation would include something like an extended stay hotel. Mr. Fialho said "no," it applies only to permanent residences such as apartments, townhomes, condominiums and single-family residences and not to extended stays or hotel rooms. City Attorney Lowell concurred and Mr. Dolan added that HCD would most certainly not allow long-term hotels to count towards the city's housing inventory. City Council Minutes Page 4 of 8 February 3,2015