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Parcel 14 - Rose Avenue: Mr. Lee asked for clarification as to which portions of the parcel should be designated as MDR and which for HDR. Staff feels there is a need for High Density. Both Rose and Division can funnel traffic or the High Density designation could be made closer to Valley which is a larger arterial. Mr. Brandes felt that it would be appropriate to hear from the people in attendance who wished to speak during the public hearing before making a decision on this parcel. Mr. Lee requested that the recommendation be postponed until the public hearing. Parcel 27 - Busch: Mr. Lee pointed out that the property owner would like to have 56 acres of this parcel to Use for Medium Density Residential. He asked whether it would be a good idea to put housing next to a corporation yard. Councilmember Wood asked how long they will be mining out there. Mr. Lee answered that they would be mining for approximately another 50 years. Mr. Lee also pointed out that the California Division of Mines and Geology has designated the area as a "regionally significant construction aggregate resources" area. The consensus was to recommend Option 2 which is to redesignate the 56 acre portion to MDR. Proposal l0 - Growth Management Policies: Mr. Lee asked for some clarification on the issue of unused annual allocations and exemptions and what effect they would have on the residential growth rate. He outlined the various options. Commissioner Innes asked Mr. Lee how the Residential Review Committee felt about carryovers. Mr. Lee responded that they felt the carryovers should be added to next year's allocation as long as it did not exceed the maximum. Mayor Brandes stated that is is very important to have the flexibility on an annual basis and he concurred with the carryover. He feels that it is important to have a benchmark and also take into consideration other policies such as low income and 25% multiple housing. He feels strongly that a benchmark is necessary. It's OK if we determine the number of units as it relates to population, but we should have some sort of benchmark. We should consider how many housing units will be built during the next few years. Commissioner Innes stated that with the 1000 unit cap, the market will establish the number of units built this year. He said that if Our allocations get too far in advance, we will have a hard time seeing the impact of what is to happen. Mr. Lee responded that if we can plan for 650 or 1000 units, we can size our roads and infrastructure based on that number. - 3 -