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HomeMy WebLinkAbout01/23/19791 1 Roll Call Councilmen PRESENT: ABSENT: City Staff M I N U T E S ADJOURNED MEETING OF THE CITY COUNCIL CITY OF SAN LUIS OBISPO TUESDAY, JANUARY 23, 1979 - 7:30 P.M. COUNCIL CHAMBERS, 990 PALM STREET, CITY HALL SAN LUIS OBISPO, CALIFORNIA Ron Dunin., Jeff Jorgensen, Steve Petterson, Mayor Kenneth Schwartz and Allen Settle None PRESENT: Leland Walton, City Administrative Officer; George 2hacher, City Attorney; J.H. Fitzpatrick, City Clerk; Henry Engen, Community Development Director; Terry Sanville, Senior Planner; Glen Matteson, Assistant Planner; Dave Romero, Public Services Director E -1. On motion of Councilman Settle, seconded by Councilman Dunin, the following resolution was introduced: Resolution No. 3762 (1979 Series), a resolution of the Council of the City of San Luis Obispo approving an agree- ment between the city and the North Coastal Transit Authority for operation of a public transit system. Passed and adopted on the following roll call vote: AYES: Councilmen Settle, Dunin, Jorgensen, Petterson and Mayor Schwartz NOES: None ABSENT: None E -2. On motion of Councilman Settle,.seconded by Councilman Dunin, the following resolution was introduced: Resolution No. 3763 (1979 Series), a resolution of the Council of the City of San Luis Obispo approving an agreement between the city and San Luis Transportation Inc. to amend the San Luis Obispo public transportation agreement. Passed and adopted on the following roll call vote: AYES: Councilmen Settle, Dunin, Jorgensen, Petterson and Mayor Schwartz NOES: None ABSENT: None 1. Council consideration of the Housing Element of the General Plan dated November 9, 1978 and continued from the council's study session of December 12, 1978. Mayor Schwartz presented the initial introduction by stating that this Housing Element was one of a.required nine elements of the General Plan required by state law for cities and counties in California. He listed the other elements that are required stating that after the Land Use Element, the most important to the people of a community would be the Housing Element. He stated that the Housing Element as recommended by the Planning Commission consisted of the problem, the policy and a list of possible programs to alleviate or improve housing conditions within the community. Henry Engen, Community Development Director, stated that the city adopted a Housing Element in 1973. Since 1975, the staff and Planning Commission and a special task force appointed by the City Council have worked on a new Housing Element. The Planning Commission has reviewed the material produced over the last several years and recommends that the City Council adopt a City Council Minutes January 23, 1979 Page 2 new Housing Element of the General Plan entitled, "Housing Element, Approved by the Planning Commission, November 9, 1978." He stated the Planning Commission recommends that after a hearing by the City Council, the City Council should adopt the Housing Element as part of the city's General Plan. He continued that the revised Housing Element, as presented by the Planning Commission, includes much recent information and response to requirements on Housing Element context recently proposed by the State Department of Housing and Community Development. He said basically, the Housing Element contains three sections. 1) An overall statement of community housing problems and issues. 2) A statement of goals, policies and programs. 3) An expanded analyses of current housing conditions. He continued by stating that in addition to processing requirements and standards imposed by private lending institutions, state government and federal government, the city has several review procedures which may or may not effect a given development. He stated there were no typical projects. The least complicated would be the construction of one single family residence on land with all services and proper zoning, which would require only a building permit. The most complicated development involved annexation, General Plan amendments, Specific Plan preparation, rezoning, environmental impact report and a subdivision map. He then reviewed for the City Council figure 3, which listed the various city regulatory functions such as: 1) The condition of the property 2) The action that had to be taken 3) The authority 4) The reviewing bodies 5) Fees 6) A time frame for development Mayor Schwartz stated that due to the complexity of the issue and the amount of material to be disucssed, he was hoping to be able to divide the public hearing into two general phases: 1) Input from the public on the overall feeling for the Housing Element, good, bad or indifferent. 2) To focus in on specific problems, numbers 1 through 18, council policy and any suggestions for alleviating the problem. Mayor.Schwartz declared the public hearing open. Tom Schuman, S.L.O. County Tenant Association, felt that the basic assumptions in the report were erroneous and misleading, particulary items 3 and 4. He felt item 4 was wrong in the staff's assumptions. His overall feeling is that the Housing Element, as produced by the city staff and approved by the Planning Commission, was a growth- inducing element for the community. Russ Johnson stated that he was opposed to the overall direction of the plan, and felt that this plan was contrary to the good life in the community and especially San Luis Obispo. He questioned 1) the cost to taxpayers to develop this Housing Element, and 2) he wished to know who in the staff prepared the document which he felt was a socialistic approach to housing and he was opposed to the concept. Lis Fisher stated that she would support the overall plan as presented. She also urged that the council put in the controls and programs taken out by staff and Planning Commission, particularly, the matter of affordable housing for all citizens, rent controls, etc. She would like to see items 8, 9 and 10 discussed in detail. Ruth Wirshup, City Housing Authority, supports the Housing Element of the General Plan but urged the City Council to consider implementations, not just adopt a report without action. She too urged inclusion of affordable housing and some implementation plan. She stated that the Housing Authority members would be coming forward to the City Council sometime in the future for support, both financial and moral, to develop housing for the people. 1 1 1 City Council Minutes January 23, 1979 Page 3 Councilman Dunin asked that the definitions of affordable housing and least cost housing be included in the Housing Element. Larry Robinson felt the overall Housing Element was well -done, buy he would like to discuss Item 1 in particular. Phil Humphrey, Vice - President Cal -Coast Construction Company, felt the overall Housing Element was satisfactory, but he would like to discuss things such as ' affordable, least -cost, supply and demand, etc., particularly Items 1, 2 and 3. Mike Yeoman, part owner of Hudson Bay Construction Company, felt the overall Housing Element was satisfactory, but that he would support more home owner- ship of housing rather than rental. He would support more expansion and explanation on condo conversion as new buildings were too costly to build. Gail Sorenson, H.R.C., stated she supported the plan in general but would like to discuss in more detail, Item 18. Naomi Knox would support the Housing Element but would like to discuss item 10 in more detail and also discuss the matter on page 16 entitled, "Additional Concern ". Walt Lambert, H.R.C. member, supported the adoption of some sort of Housing Element but would like to discuss item 5 and 6 in more detail. He felt that his studies have shown that about 15% of the cost of a new house is involved in governmental rules, regulations, etc. Pat Whitson, H.R.C. staff, felt the council should address more low rent, least cost housing for the poor. She would support adoption of a Housing Element and also would like a time line on implementation. She felt that this was a more important item than just adopting another report and placing it on a shelf. She would like to discuss items 2, 15 and 16. Sammy Lopes, County Planning Department employee, would support the Housing Element if it were consistent with other elements of the General Plan. He felt there should be more control in the General Plan on growth management and that this should be addressed immediately, and he felt that utilities could be out - stripped by housing demand. He felt the General Plan, as adopted by the City of San Luis Obispo, was not consistent with the facts. He would like to discuss items 6 and 9 in more detail. J.T. Adair, sports official, urged the City Council to adopt an ordinance that would not allow sale of a house within a three -year period, and.that any capital gains after the three -year period on the sale of the house would go to the city for development of more housing and not to the seller. He would like to discuss item 12 in more detail. Mayor Schwartz closed this portion of the hearing and stated that as he under- stood it, the public wishes to discuss the following problems in more detail: 1, 2, 39 4, 6, 8, 9, 10, 12, 13, and 15. He then reopened the public hearing for item 1. Item 1: PROBLEM: Volume of Construction. Projected construction needs based on population projections and theoretical increase of the vacancy rate surpass the level of building activity the community has been able to sustain in the recent past. ' Liz Fisher felt the first thing the City Council must do is adopt a growth management plan or strategy before adopting other elements of the General Plan. She also felt that numbers should be removed from all the plans as to future growth. Larry Robinson asked on item 1 where the.time line or time frame was for accomplishment and implementation of this problem. Rob Strong, Planning Consultant, felt that problem 1 was a carry -over of the 1975 Housing Element which envisioned that the city would catch up with housing by 1980, but he felt the city is at the same place in 1979 as they were in 1975, there has been no catch up. City Council Minutes January 23, 1979 Page 4 Charles Long asked where the city was planning to get land in order to develop 400 to 600 units per year. He felt that there was no adequate land at the present time to develop, except for some odds and ends within the community. Sammy Lopes, County Planner, urged that a growth control be placed on develop- ing industrial,.commercial and business expansion in the city. He felt this economic growth was what caused part of the housing problem, because he felt if there were no jobs, then the people would have to live someplace else. As a county planner, he said he had no control on development surrounding the ' city, but he felt the city should control their development. He felt land zoned for industrial development was poorly done in the Land Use Plan as he felt the land was good agricultural land and should not be allowed to develop. Rose McKeen, realtor, stated she would support intelligent controls by the city, but she could not support controls that cause further hardship on the citizens of the community. She felt that the supply and demand economic principle would reduce costs and make housing available. She also felt the city should relax its cost inducing rules and regulations on development and buildings within the community. At 9:10 p.m., Mayor Schwartz called a reccess. At 9:25 p.m., the meeting reconvened with all all councilmen present. Item 2: PROBLEM: "Least-cost-housing." There is not enough least -cost housing available to enable local renters to move into the ownership market despite their desires. Least -cost housing is the cheapest.housing that can be built that meets minimum standards. The high cost of land and loan policies of lending institutions are deterrent to development of least -cost housing. Public acceptance is also a problem. The policy of the city would be to develop smaller least -cost dwellings to provide for moderate income entrance into the ownership market. , Phil Humphrey, Vice - President of Cal -Coast Construction, felt everyone in the building and housing industry supported the concept of least -cost housing; but with costs such as they are, caused by land shortage and excessive govern- mental conditions to put a lot on the market, it was very difficult to come up with a least -cost parcel. But, really who wants a least -cost housing. He stated that they have tried several times over the years to develop housing of the minimum nature with the least amount of amenities;.but when the people come to buy, regardless of their economic conditions, they all want the amenities and niceties of a home. One way the city-might consider reducing cost would be to allow greater density on land in order to allow smaller units but less development costs due to high land costs. Liz Fisher, Tenants Coalition, felt that many people would purchase an unfin- ished home if the city would allow it. She objected to the developer and the speculator making high profits on sales of housing. She also felt that the city staff caused many delays in processing plans which just adds to the housing cost in the city. She also felt that the city had too many regulations for the developers to comply with. She gave as an example: tribulations of the developers of Tract 592 complying with regulations of the city which increased the costs many thousands of dollars. She stated she felt it was time that the people who could afford high - priced housing should subsidize their neighbors who want a house but cannot afford to pay for it. John Korelich, contractor /developer, felt that the problem involved was ' in financing of housing for speculation. He felt that financial institutions look to the life of the loan, not just to the first sale. In other words, they want a house that will sell a second time if the people involved cannot keep up the payments or move. A least -cost housing finished by the occupant, would hardly meet many of the requirements of the market. Item 3: PROBLEM: Rent Inflation. Rents may be raising faster than land- lords costs, especially for mobile home parks and older apartments which have advertised purchase or construction loans. City Council Minutes January 23, 1979 Page 5 The city policy would be to increase the supply of rental housing in San Luis Obispo. Mike Yeoman, a developer, felt that the cost added by the city makes housing extremely expensive. He gave as an example, the increased cost of $69200 added by the city for extra amenities for four units he developed which meant that each of the units had to pick up 14 of the cost or $1,550. He continued that additional cost of land development is caused by the city's high Bevel- , opment costs. He felt it took up to two years to get a staff approval through on any development over a single family unit. He also felt the city could increase density, then central costs could be absorbed by more units. Liz Fisher again spoke saying she agreed that rents are increasing faster than costs to landlords. She felt some controls should be put on rent. She urged the council to do something to help the poor people living in mobile home parks. She also urged that.the city adopt, 1) a strong growth management plan, and 2) a strong rent control ordinance on apartments and mobile home parks. She also felt that these should.be enforced, not just adopted and let to lay dorment. She did not feel that increasing the supply of housing or mobile home spaces would solve the problem. She felt rent control was the answer, as it is her feeling that people do not want the city to grow any more, just protect the ones that are living here. Tom Shuman felt that to increase the housing supply would not solve the exist- ing problem, as he felt that if housing were made available, people from Los Angeles would move in and the local citizens would still be hurt. He too felt that rent control was the only answer to housing problems and growth problems. He finally stated he felt that government should supply people with adequate, decent housing. He also felt that rent control would help the businesses in town as the tenants would be paying less rent and as a result could spend more in the stores. ' Councilman Jorgensen recommendation stated of "increase he felt that the Planning Commission policy the supply of rental housing in San Luis Obispo" was inadequate and really a joke. He felt that the planning staff and commission should have come up with a transfer tax to cool off speculation, particularly in the mobile home park area. George Kellogg, resident of Laguna Lake Mobile Home Park, urged the City Council to have compassion on the people and adopt some type of control of rents in mobile home parks in order to protect the senior citizens and the poor, who are the majority in the mobile home park residents. He said they cannot afford further increases in space rent. He stated that the poor and senior citizens are proud and want no help from government such as subsidy, but they would like to be able to control the rents in proportion to inflation and in proportion to their income. They also want some protection from being thrown out of the park. Which means, they have to drag their trailer along with them. He did not object to just and fair increases based on increased cost and inflation, but he felt he represented a group of people who opposed rents which are raised out of proportion. Rose McKeen stated that she was opposed to any type of rent control which she was sure would not solve the problem. She said it looks good at first, but rent control ultimately destroys the housing market and the rental proper- ties. Rosemary Green stated she was opposed to rent control in any form. She stated that the history of rent control ultimately destroyed the property as the owners returns are reduced and the buildings and property are not maintained, and ultimately, are destroyed. She gave several examples of this in the Clty of New York, Los Angeles and Long Beach. At 10:30 p.m., Mayor Schwartz closed the public hearing saying that they would not be able to finish the report this evening, but would continue the matter to the next council adjourned meeting of February 13, 1979 at 7:30 p.m. 2. The City Council adjourned to Executive Session. At 11:00 p.m., the City Council reconvened in Regular Session with all councilmen present. City Council Minutes January 23, 1979 Page 6 3. There being no further business to come before the City Council, Mayor Schwartz adjourned the meeting to February 2, 1979 at 5:00 p.m. at Sebastians on the Mission Plaza, for review of procedures for conduct of disciplinary hearing. APPROVED: February 6, 1979 �� itzpatrick, City Clerk Minutes of February 2, and February 3, 1979 were held in Executive Session, and are held by the City Clerk. M I N U T E S ADJOURNED MEETING OF THE CITY COUNCIL CITY OF SAN LUIS OBISPO MONDAY, FEBRUARY 5, 1979 - 12:10 P.M. COUNCIL HEARING ROOM, CITY HALL, 990 PALM STREET SAN LUIS OBISPO, CALIFORNIA STUDY SESSION Roll Call Councilmen ' PRESENT: Ron Dunin, Jeff Jorgensen, Steve Petterson, and Mayor Kenneth E. Schwartz ABSENT: Allen K. Settle City Staff PRESENT: Leland Walton, City Administrative Officer; J.H. Fitzpatrick, City Clerk; George Thacher, City Attorney; Rudy Muravez, Finance Director; Dave Romero, Public Services Director; Wayne Peterson, City Engineer; Henry Engen, Community Development Director. 1. G.D. Spradlin appeared before the City Council on behalf of a proposal for cooperative development with the City of a Community Center on Broad Street between San Luis Obispo Creek and the City -owned property on the corner of Monterey and Broad Street. G.D. Spradlin stated that he felt his proposal would generally help the long- term goals of the City in extending Mission Plaza and would particularly rein- force these goals on the subject site that he owns adjacent of the City's ' property. He felt that the site should be devoted to a mixture of uses, that is, private, quasi - public, and purely public. He proposes a three story structure, the top floor to house private, professional offices; the street level to be used for retail activities; and the bottom floor to be designed as a Community Center to accommodate multiple uses by the public for the City. Such a center contemplates use, especially in the evenings, as a meeting place for civic and community groups, as an area for the performing arts- - Theatre, Mozart Festival, etc. He felt his proposal for use of the site was compatible with the City's needs and goals.