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Ms. Michelotti asked if Council was moving in the direction of trying to get more multiple unit housing to provide below market units. Mayor Pico said no one was talking about multiple housing. He felt they were talking about adjusting the fees to provide more revenue to pursue whatever options it wanted to. Ms. Michelotti thought she heard more multiple housing and that the inclusionary housing doesn't always work, so there is a need for a fee to take the place. Ms. Ayala was concerned about the gap between $200,000 houses next to million dollar houses. The overall need for affordable housing is great and we need to look at the existing apartment developments to see how they can be subsidized to supply more affordable housing. Ms. Michelotti could not see where it was possible to build new high density units. Mayor Pico mentioned that there is a proposal coming within a month from the Hacienda Business Park owners for a feasibility study for affordable workforce housing. The community might accept higher densities in that location closer to work and transit. That has been recommended by staff in looking at potential places for additional affordable housing and higher density housing. The business community may want to make that happen because it sees the need for additional workforce housing. Ms. Michelotti felt if Council wanted to raise the COI fee to $3.75/sq. ft. then it should also think about canceling the fee when they provide the housing. Mayor Pico felt that would be reasonable. Ms. Michelotti pointed out not much is being built right now. Mayor Pico invited public testimony. Steve Brozosky, 1700 Vineyard Avenue, felt part of the problem of raising the fees on houses was that it raises the price of the houses. That makes it harder for people to afford the houses. He liked the comments about increasing the fees for the commercial developers. The Chamber of Commerce talks about a jobs/housing imbalance and there needs to be more workforce housing. If they truly believe that, they need to pay more or provide the housing. He felt that was a direct nexus. Council has not talked about encouraging secondary units that are actually used for in-laws or rentals. He felt it would be good to provide incentives for secondary units. With regard to the percentage of the sales price, he felt that would not work with regard to custom houses. If a person bought land and built a home to live in, how would the city calculate the price. The house would not be sold. There were no other speakers. Pleasanton City Council 32 09/03/02 Minutes