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477 EXECUTIVE SESSION Mayor Mercer recessed the meeting at 10:00 P.M., to an Executive Session to discuss pending litigation. Mayor Mercer reconved the meeting at 10:15 P.M. REPORTS OF THE CITY MANAGER (Contd) Report on Affordable Housing Mr. Harris presented his report (SR 81:242) dated July 8, 1981, regarding this matter. Councilmember Kephart commented that the staff report addressed generalities but did not address specific information that he had requested. He stated there needs to be a definition of what Affordable Housing is. He felt the median income should be that of Pleasanton,. not Alameda County. He stated that Affordable Hous- ing should be reviewed in how it affects Pleasanton. Councilmember Kephart pre- sented a formula relative to parameters and assumptions for Affordable Housing, based on a median income of $28,000, and a sales price for housing at $89,500. He stated he felt there should be further review of the ResidentialAllocation Program relative to ways to facilitate low income housing. Mayor Mercer presented a letter from Yvan Albert, 7926 Hillsborough Court, urging Council to consider proposals for City-owned land that could be put forth for developments as an incentive to developers; their proposals could be Judged for their merit and for the benefits to the community. He stated that better guide- lines must be provided with definite policies and purposes that a developer can understand and abide with. Mr. Jim Barri, President of the Chamber of Commerce and members of the Housing Task Force, presented a memorandum from the Housing. Task Force to the Council dated 3uly 14, 1981, regarding the staff report on Affordable Housing. He stated the Chamber's Housing Task Force is willing to host an informal ".~.rainstorming session" with Task Force members, City staff and officials, and interested developers to dis- cuss, refine, and flesh out the plan presented by staff. Mr. Barri stated that the Housing Task Force recommends that the.Council direct staff to pursue formation of a partnership with a local non-profit housing corporation to provide community sup- port for housing which the market cannot provide (such as rentals), and that the Council endorse the concept of a competitive program among private developers, with- out direct City support, offering flexible zoning, design and construction standards for the provision of market rate affordable housing, and permit the staff to meet with the Task Force and other interested parties to further discuss the specifics of such a program. Mr. Barri commended the City staff for their efforts in this area, and encouraged the City Council to continue its expressed support for local solutions to the housing crisis. Mr. John Caroline, 4487 Pleasanton Avenue, representing Oliver de Silva Company, and speaking as a citizen, presented a concept for affordable housing for considera- tion by the Council. He stated that Mr. de Silva has been in touch with Mr. Bates to build on. his property. Mr. Caroline presented drawings of housing at a price of $89,500. He stated that 180 of these homes could be built on Mr. Bates~ property. He suggested that they be sold first to City police and fire personnel and other City employees, and after that it would be on a lottery system. He stated that Mr. de Silva would need Residential Allocation Program exemption and sewer allocation for such a project. Mr. Caroline concluded by stating he felt Mr. de Silva has a great idea and the Bates property is available. He urged Council to give this pro- ject 100% consideration. 12. 7/14/81