treach We'd be coordinating with our economic development team and talking with affordable housing developers to understand implications and explore the options, you know Full charges partial charges Are there certain exemptions in some instances versus others and so forth? Thank you. That's it For the questions comments Okay So a couple of questions mr. Butler We're talking am I right? We're talking right now about that percentage Of housing that's going to be constructed That is affordable and currently we provide am I right on this? They are exempt in hundred percent projects. There's an exemption From these two particular fees. Is that correct? That's correct public safety and child care Say it again public safety fees and child care.  So those two fees If you're building 100 affordable you're exempt under current current ordinance So the question if I understand it before us is do we want to change that? Do we want to say that 100 affordable projects pay something towards that and what is that something? And and so on and if we give you that direction you'll go out There'll be a lot of answers to that back you come and then the council gets some choices so And and if I'm looking out over the planning horizon for the next eight years Roughly 80 percent of what's going to be constructed will be market rate Uh, I suspect or some substantial portion is going to be in let me let me start this again We're planning for roughly 4 000 housing units to be built over the next eight years Some of those will be in projects that are 100 affordable, but not very many is my guess 100 percent affordable housing It's really hard to build right It is although we we end up getting decent chunks, you know, we've got 124 units in one project 80 in another 65 in another and so that those do add up Over time admittedly. Yeah, they do My issue here is that we are going to get A substantial amount There's going to be three quarters of a billion dollars of investment in Santa Cruz in the next eight years around housing generally And because of that we are going to get a lot of revenue in on the child care impact fee and the public safety impact fee From those that are currently covered. Nobody's talking here about changing any of that It's it's about the hundred percent affordable. Is that correct? That's correct. And we are going to get the impact fee on all the others on everything else correct. Well, so I will tell you I'm deeply skeptical about adding one more penny of cost To affordable housing projects one more penny to any unit Because every time we do it we've done it twice today We've heard it twice today. If you take this stuff in isolation None of it's a terrible impact fee. It's going to break the bank on putting together unaffordable housing project, but if you add what we just did on On uh electricity Now you add in you say well, we're going to start thinking about putting these people in some way shape or form These kind of housing units are supposed to be affordable and then we separately Maybe have two other items in the next couple of months and then three more after that And not one of them individually is going to make it impossible to do affordable housing But it is going to each one of them is going to incrementally increase the cost of building affordable housing And so I'll tell you one person here that I'm going to get out voted on this But but I get it that you're going to go out and you're going to study this I am deeply skeptical and reluctant to add one more penny Of the cost of building affordable housing anywhere in the city of santa cruz So uh as at least it comes to my vote which you probably aren't going to need on this motion But when the actual substance comes back here, I hope that there's a recognition That this absolutely makes affordable housing less affordable It's axiomatically true And so I before the council goes forward on this it's the conversation today Is not about whether or not we're going to have enough money for child care and public safety Because the general fund takes care of your and and that's our That's a decision we have to make at budget time whether it's capital outlayer operations expenses And so to find a fund for you. I have no trouble with that. We have one It's on the market rate housing that's built I get that and that makes sense and I won't vote to change that to make it less so for you on the affordable housing issue as it relates to child care impact fee And on the public safety side, I don't want to do that I don't think there's a compelling argument yet that somehow we're not able to do what we need in public safety or over in child care Other than going to the 100 affordable and saying we're going to get more of this from you I I don't think that to me. It's not a compelling argument yet That somehow we're not going to have what we need unless we go over here and start charging some form of impact fee To 100 affordable projects. So I'm not asking for a response. I'm sharing with you what my thought is on this Matters back before the council. Oh, I'm sorry. Is there anyone who wishes to comment on this? Okay, matters back before the council I'll move the um, I'll move the recommendation to accept the report and then also to Have staff explore as outlined in the recommendation of the of the agenda report There's a motion. Is there a second? I'll second that motion and a second by the vice mayor debate or discussion on this matter Ms. Brown Well, I um, I wasn't going to say anything because I think we're pretty ready to Move through this item, but I I did want to comment mayor on the in response to the comments you made because I think they're You know very important ones the you know in my mind what what I see here is If we do make changes As director Butler suggested and I'm sure Director Lipscomb is also thinking about We may just end up moving the where the subsidy comes from or the the support comes from and if that's what the council decides They want to do You know, I don't have strong feelings one way or another about that But I do think that your point about the decision we're making Will cost affordable housing developers more I mean it will cost money and it's got to come from somewhere And it's unlikely to make a project You know not viable the given the amounts, but it will mean that they're going to come to us for the affordable housing trust fund To subsidize it. So just be thinking about that. Um as we Proceed, uh, hopefully with caution For the comment madden voice mayor I would like to say the same could be said for our last item And from my perspective, I think this is more important Um, because it pertains to the citizens that are living here and will be living You know Here for moving into the the new developments where The idea of um greenhouse gas emissions, there's other things that could be done, right? So, um, I think this is very important and should absolutely we should consider it A little bit of discussion soon hearing none Thank you. If I could just get clarification Is this applying to both the public safety impact fee and the child care impact fee? Correct. Thank you The staff recommendation neglected to include the child care impact fee. So I wanted to make sure I thought that was the case for that clarification. I didn't realize it wasn't included in the recommendation. Yes for both Great. Thank you. We inadvertently left that out when we changed the report I want to make miss miss bush is clear on the motion No, I don't know what the difference. Okay. Mr. Butler come back here. Let's make sure we know what the motion is The um second part aside from accepting the report is to provide uh, so recommend that this or direct the staff to um Look at the potential applicability of the public safety impact fee and child care impact fee to 100 affordable housing projects Exactly. Thank you for that Thank you pause for one second Mr. Newsom, please proceed. I was uh, thank you. Mary keely. I was just going to quickly say I'm I'm inclined to Very cautiously support The action as it is, but I will associate myself with Mayor's keely's comment to an extent of I am very skeptical that any options will not increase affordable housing and I'm not Or the construction will increase the cost of constructing affordable housing and I As myself, I'm not interested in any options that will increase the cost of constructing affordable housing or will become a pediment of Constructing affordable housing For the debate or discussion miss bush Why should you change now? I know Miss bush, do you have the motion? We have the motion correctly. Okay clerk will call the roll Council member is new son. Hi brown. Hi watchkins. Hi runner Hi Calentary johnson. Hi by smear golder. Hi and mary keely Motion passes into order item 19 has been continued to virtue few that a future date Mr. City attorney, do we have further business come before us? We do not miss bush for the business come before us A motion to adjourn is in order and the vice mayor reluctantly makes such a motion And mr. Newsome seconds it equally as reluctantly clerk will call the roll All those in favor Opposed adjourned