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on the single family detached unit that may be 2% instead of 3%. Ifa house is $600,000 then the fee would be $12,000 and that is closer to the staff recommendation, but would self-adjust with inflation. He felt that could be a reasonable nexus number like the current recommendation of $8,458 per unit. In terms of multi-family units, he agreed with keeping that number relatively low to encourage more multi-family units. In terms of the COl number, he felt the business community should be asked to do its part when it talks about the need for workforce housing in the community. They should finance a reasonable percentage of that. There is a nexus that says the city could charge up to $3.50/sq. fi. and the fee is significantly less than that. He would like to see staff increase the COI rate to $1.80/sq. fi. As an interim step, he suggested adopting the staff recommendation with a modification to double the COI and urge staff to go ahead with a nexus study on a percentage that could justify a percentage that would equal the fee set by staff for the single-family units and allow a formula that would self-adjust in the future rather than have to review the fee every few years. He believed some of the fees for affordable housing are significantly lower than neighbor communities and higher than others that charge nothing. Ms. Michelotti asked how the inclusionary ordinance could be justified if that methodology is adopted? Mayor Pico said he would rather see the single-family developer building the inclusionary housing, but if they do not, then the city needs to get the money to achieve its longer term goals. Ms. Michelotti said the higher the fees go, the higher the prices of the houses will go. People building custom homes are still subject to this. Mayor Pico felt if someone is building a million dollar home they should be able to afford a $20,000 fee to help build affordable housing in the community, especially if the community says it really needs it. He reiterated his desire for a percentage that would be able to meet the nexus of the staff recommended fee and would still be self-adjusting in the future. Ms. Dennis asked how often Council could adjust the fee. Mr. Bocian said whenever it wanted to. Currently it is adjusted annually. Ms. Dennis said with so few residential units left, she felt the percentage suggested by Mayor Pico would be more trouble than it was worth. Within the existing methodology, we have not exhausted all the potential and there is no need to deal with nexus studies. She felt if the nexus issue is opened, it would invite more argument than if you use the current methodology. There are still opportunities to raise the fees. There are more tools available if the nexus question is not raised. Mayor Pico said he understood that reasoning and that is why he suggested a percentage that equates to the fee that staff has already said meets the nexus. He also agreed that the COI number should be reviewed. Pleasanton City Council 31 09/03/02 Minutes