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74 contributions. Mr. Tarver stated that without the provision, a project that is rezoned High Density and does not have affordable units would be contributing neither affordable units or money to the City's program. Mr. Owens suggested that Section 17.40.060 D be expanded to clarify that a developer can transfer both the land and its fee credits as part of that transfer and that, as an incentive to build low-income housing, a developer who builds low-income housing would be able to sell any credits it did not need to other developers. With regard to the Annual Fee Escalator, he stated that the Bureau of Labor Statistics, which publishes the Consumer Price Index (CPI) has, in its Producer Price Index, a cost of construction materials which includes the housing industry and an average monthly cost of labor in that industry. He added that last year, the CPI had a 300% increase over the Engineering News-Record (ENR) index for its construction index cost. He proposed that the actual cost of building a house be tracked rather than just the cost of construction. With respect to Section 17.40,060 C, he recommended that the ordinance simply state that the amount of the fee credit would be determined by the Council from project to project rather than specify a credit of $5,000 per unit. Mr. Tom Rotticci, Assistant Vice President for Wells Fargo Bank, reiterated Wells Fargo Bank's proposal that the ordinance include an alternative that a developer could provide for the financing of low-income housing projects in lieu of the fee. He explained that this would promote the program for low-income housing and would exemplify the Bank's commitment to be a concerned and conscientious corporate citizen of Pleasanton. He handed the Councilmembers some information brochures on the Bank's lower- income financing programs and offered to set up a meeting between the Bank officials and the Councilmembers and staff to discuss the program further. Mr. Rick Aguiar, 7736 Flagstone Drive, member of the Citizens' Committee on Affordable Housing and the Affordable Housing Task Force, indicated that he agreed with most of Mr. Owens' statements. He commented, however, that leaving the amount of the fee incentive open could greatly lessen the low-income fund and that using the CPI as the basis of the fee escalator would protect against inflation and would help maintain the value of the fund. He stated that the low-income fee was aimed at helping first-time homebuyers, teachers, and those who earned 80% or less of the median income and expressed concern that including moderate-income would defeat the purpose of the fund because it would allow those earning about $55,000 annually to avail of the subsidy 10-16-90 - 18 -