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MINUTES Page 5 City of San Leandro City Council and San Leandro Redevelopment Agency Joint Meeting-January 22, 2008 Ms. Oesterreich responded to the issues raised by the speakers. Regarding the noise issue, Ms. Oesterreich stated that, based on recommendations from a noise consultant, an extra layer of sheetrock will be installed in the hallways, and all the windows will be replaced with dual pane glass. Ms. Oesterreich pointed out that this project is surrounded by multi-family developments, and due to parking shortages in these developments, cars overflow onto this property. She stated that she had not heard tenant comments regarding water quality. Councilmember Starosciak asked whether lead testing had been done on the water and whether mold inspection had been performed. Ms. Oesterreich indicated that lead testing had not been done but mold inspection had, and no mold was found. Councilmember Starosciak expressed concern about the laundry facilities, and that this may not be the type of housing stock that the community wants to support. She noted that The Willows has laundry facilities and upgrades in all of its units, and yet only half of the units have sold. Councilmember Starosciak commented that she felt all the units should be renovated to an excellent quality, and that she would like to see all the major investments-roofing, painting, decking, and other structural elements-made before the units are sold. She expressed concern that the estimated $300 per month homeowners association fee is very high for the amenities being offered, and the homeowners association would not be able to build up a reserve if major renovations must be made in the short term. Councilmember Starosciak stated that she would rather not see "compacting" of spaces in order to gain more parking spaces. She commented that while she supports the opportunity for home ownership, she has grave concerns about the project as it is currently presented. In response to comments about the estimated HOA dues, Ms. Oesterreich indicated that a firm was hired to provide this estimate. She stated that the buildings do not have individual meters for hot water, and the fee includes the cost of the hot water. Ms. Oesterreich stated that all the major renovations will be made before the building is turned over to the HOA. Councilmember Gregory commented that he is fairly satisfied with everything except the phasing of the project, and stated that the City has a responsibility to ensure its housing stock is at a minimum standard and that the conversion should have a beginning and an end. Councilmember Stephens stated that he is a strong advocate of condo conversions and for increasing home ownership opportunities. He commented that he feels the City's housing stock should reflect amiddle-class standard, and he stated that he has reservations about whether this project meets this standard of quality housing and whether it is suitable for ownership. Mr. Jermanis noted that the City Council will hold a work session on housing in February. He suggested that since there is no great urgency to take action tonight, the Council could defer the decision on this matter until after the work session. The