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261 elderly and handicapped is reasonable and the tenant relocation clause is good. Mr. Matteson concluded by stating that pricing for housing is going to get worse and the small builder will be forced out; and that moderate income housing will be jeopardized if this ordinance is adopted. Mr. John Ferreri, 865 Abbie Street, stated that the proposed condominium ordi- nance would discourage apartment house development in Pleasanton; and that Council should be considering some type of mechanism with incentives to encourage this type of building such as exemption from the Residential Allocation Program, lower sewer connection fees, allow higher density, etc. He stated that if this ordinance is adopted the owner will have no control over his own destiny since he would have no control over the timing of his return on investment. There being no further testimony, Mayor Mercer declared the public hearing closed. Council reviewed the proposed condominium ordinance page by page and made the following changes: In Section 2-4.45 include mobile home parts to be regulated also. Under Section 2-4.47(a) - include four-unit complexes or less should be exempt, and include mobile home parks. Under 2-4.47(f) - Council determined that subsidized and lower-income Residential Allocation Program exempt housing units not be counted in "rental stock". Mayor Mercer requested the City Attorney to prepare a report re- garding the difficulty in determining rental condominiums vs. owner occupied. Mayor Mercer suggested that under Section 2-4.49 Conversion Permit Requiredl Council Action on Applications - the sentence "In granting conversion approval, the City Council shall ensure that the provisions of this chapter relating to physical-standards and tenant provisions are implementedto the maximum extent feasible" be modified to re- late specifically to the sections containing standards, etc. Council concurred. Under Section 2-4.50 Approval Procedures - exempt four-unit complexes, as determined earlier. In the same section under (b) - delete entire paragraph and instructed City Attorney to write new procedure not requiring Council review. In the same section under (c)(2), instructed the City Attorney to address the question of when the ordi- nance would first be used, the Council desiring to allow some conversions in 1981-. In the same section under (c)(6) - After discussion, it was moved by Councilmember Butler, and seconded by Mayor Mercer, to have the ordinance spell out that when Council approves in excess of 5% in one year it will not be deducted from the next year's allocation. The roll call vote was as follows: AYES: Councilmembers Butler, Wood, and Mayor Mercer NOES: Councilmembers Kephart and Mohr ABSENT: None Under (d) change "unanimous" to 85%, and delete the requirement for a history of tenant occupation. Under Section 2-4.51 Public Hearin~ Required - make it clear that exempt projects need not come before Council. Under Section 2-4.53 Standards - After discussion-, it was moved by Councilmember Wood, and seconded by Councilmember Butler, to delete "(b) Enclosed and secure personal storage space for each unit shall be provided within the project in an amount equal to one cubic foot of storage area for each three square feet of gross floor area of the unit. The space provided shall be in addition to the bedroom, bath, linen or kitchen cupboard and closet space normally expected within each unit; and (c) Laundry facilities shall be provided either within the individual unit or within the project." The roll call vote was as follows: AYES: Councilmembers Butler, Kephart, Mohr, Wood, and Mayor Mercer NOES: None ABSENT: None 4. 4/21/81