HomeMy WebLinkAbout02/27/1979M I N U T E S
ADJOURNED MEETING OF THE CITY COUNCIL
CITY OF SAN LUIS OBISPO
TUESDAY, FEBRUARY 27, 1979 - 7:30 P.M.
COUNCIL CHAMBERS, CITY HALL
STUDY SESSION
Roll Call
Councilmembers
PRESENT: Ron Dunin, Jeff Jorgensen and Mayor Kenneth E. Schwartz
ABSENT: Allen Settle and Steve Petterson
City Staff
PRESENT: Lee Walton, Administrative Officer; J.H. Fitzpatrick, City Clerk;
George Thacher, City Attorney; Henry Engen, Community Development
Director; Glen Matteson, Planning Assistant; Dave Romero, Public
Services Director
1. On motion of Councilman Dunin, seconded by Councilman Jorgensen, the
following resolution was introduced: Resolution No. 3785 (1979 Series), a
resolution of the Council of the City of San Luis Obispo ordering the City
Clerk to prepare early canvass of election returns for the General Municipal
Election held March 6, 1979.
Passed and adopted on the following roll call vote:
AYES: Councilmen Dunin, Jorgensen and Mayor Schwartz
NOES: None
ABSENT: Councilmen Settle and Petterson '
2. At this time the City Council continued their public hearing on the
adoption of the Housing Element of the City's General Plan as recommended by
the Planning Commission.
Mayor Schwartz announced that as the last Study Session ended with Problem #8,
they would start this evenings meeting with Problem #9 which was induced housing
demand, enrollment, employment, and business opportunities of drawing residents
from outside the County to San Luis Obispo faster than the housing stock has
been, or is likely to be able to expand.
Policy - Institutional, industrial, and commercial, including tourism expansion
would be discouraged until housing supply could catch up with the present
employment base.
Mayor Schwartz declared the public hearing open.
Walt Lambert, Cal Poly Housing Administrator, again reviewed the Cal Poly policy
presented to the City Council at the last study session on student population as
approved by the State Trustees.
Rose McKeen, realtor and lifelong resident of the city, was opposed to the govern-
ment trying to control business, housing, education, etc. Said she felt that
government had proven incapable of fair property management. She felt before ,
controlling enrollment at Cal P61y and Cuesta; the City Council should try to
control commitments of felons to the Men's Colony and the County Jail. She felt
that students were better citizens than felons.
Rosemary Green, realtor investment counselor, was opposed to government controls
of growth. She felt that government had proved incapable of operations in the
economic fields of America.
7:50 p.m. Councilman Settle arrived at the meeting.
City Council Minutes
February 27, 1979
Page 2
Problem 10 - Assistants needs. There are at least 700 households in San
Luis Obispo who appear to qualify for rental assistance and who are not
now receiving any. There are additional households with a member employed
in San Luis Obispo who would qualify for assistance in San Luis Obispo's
rental market. Federal funding is not sufficient to provide for the amount
of assistance needed.
Policy - The city will take a more active role in providing for rental
assistance in order to provide its regional "fair- share" of assisted housing.
New construction of additional assisted housing should be given a higher
priority. Existing housing more suitable and available should also be
utilized to provide additional housing assistance. Assisted housing should
grow at the same rate as market -rate dwellings. Additional subsidized housing
should be made available first to those need it the most and how have the
fewest options in finding suitable housing.
Rich Chubon, Executive Secretary of the City Housing Authority, again reviewed
for the City Council the memo presented to the Council at the February 13th
Study Session on assisted housing, and also reviewed the present housing being
managed by the Housing Authority under the various programs.
A. 120 units owned by the Public Housing Authority;
B. 178 housing assistance under the Section 8 program; and
C. 51 leased housing units.
Rich Chubon again read the letter from the Housing'Authority presented at the
February 13th meeting particularly urging the City Council to immediately ini-
tiate a land bank using city money to procure land for future sale at cost to
the Housing Authority for development of their program.
Problem 12 - Purchase by investors. Without controls on speculation and purchase
of dwellings by people with no intent of occupying them, housing, including
lease - clause housing will not be available to those identified as having first
priority for ownership.
Policy - Housing for purchase, especially lease -cost housing required by the
city, should be made available to owner - occupants, rather than those that invest
in rental or speculative property.
Tom Schuman, advisor Tenants Coalition, supported the staff's recommendation to
control price of housing by reducing ability of purchasers to speculate and allow
only owner occupants to purchase homes. He also felt one chief means of achieving
this goal was to enact rent control, which would eliminate profits from the sale
and future rental of the property. '
Liz Fisher supported the enactment of rent control as one step to reduce specula-
tion in the sale of homes. She also felt the city government should adopt laws
to discourage advertising of local housing projects outside the regional housing
market, which she felt was from Paso Robles north to Santa Maria on the south.
Walt Lambert, Cal Poly Housing Office, felt the city should enact some type of
ordinance that would eliminate any possible speculation or profit in the sale
or rent of housing. He also felt that'it should be applied within mobile home
parks. He would support some sort of rent control for mobile home parks immed-
iately.
Phil Humphrey, Vice - President Cal -Coast Construction, supported a plan that would
require owner- occupants in each house and not speculators. He would oppose any
ordinance that would limit profit on resale of housing.
Problem 11 - Site availability. The City Housing Authority has been
unable to
secure suitable sites for assisted
size has made it nearly impossible
housing. The lack of commitment
to generate response to requests
for specific
for new
'
construction.
Policy - The city will take a more
active role in providing suitable
sites for
assisted housing. No one appeared
before the City Council to discuss
Policy #11.
Problem 12 - Purchase by investors. Without controls on speculation and purchase
of dwellings by people with no intent of occupying them, housing, including
lease - clause housing will not be available to those identified as having first
priority for ownership.
Policy - Housing for purchase, especially lease -cost housing required by the
city, should be made available to owner - occupants, rather than those that invest
in rental or speculative property.
Tom Schuman, advisor Tenants Coalition, supported the staff's recommendation to
control price of housing by reducing ability of purchasers to speculate and allow
only owner occupants to purchase homes. He also felt one chief means of achieving
this goal was to enact rent control, which would eliminate profits from the sale
and future rental of the property. '
Liz Fisher supported the enactment of rent control as one step to reduce specula-
tion in the sale of homes. She also felt the city government should adopt laws
to discourage advertising of local housing projects outside the regional housing
market, which she felt was from Paso Robles north to Santa Maria on the south.
Walt Lambert, Cal Poly Housing Office, felt the city should enact some type of
ordinance that would eliminate any possible speculation or profit in the sale
or rent of housing. He also felt that'it should be applied within mobile home
parks. He would support some sort of rent control for mobile home parks immed-
iately.
Phil Humphrey, Vice - President Cal -Coast Construction, supported a plan that would
require owner- occupants in each house and not speculators. He would oppose any
ordinance that would limit profit on resale of housing.
City Council Minutes
February 27, 1979
Page 3
Rosemary Green, Investment Counselor, stated she was opposed to further
governmental control in the market - place. She felt the present inflation
in the U.S. economy was the result of government controls at all levels
in the market - place. Finally, she felt that staff recommended programs,
B, C, and D were rediculous and she felt unenforceable.
Jerry Holland, realtor, opposed the recommended programs, B, C, and-D.
He felt that the market - place, where cost and value was established, not a_t
at City Hall: Possibly a law could be adopted that would prohibit any
resale of housing from two years of sale. He was opposed to rent control
as he felt that rental controls would further deteriorate property due to
lack of maintenance.
Tom Schuman, Coordinator of the Tenants Coalition, felt that government .
should control the resale of housing in order to thwart the developers
speculator in making a profit on resale. of so- called lease -cost housing.
He felt that strict rent control law strictly enforced would limit profit -
on housing resale.
Will Greer, realtor, objected to constant derogatory references to speculators.
He felt that cost of housing could be reduced by adding to the housing supply
and by allowing the economic principle of supply and demand to control costs.
He felt that there are a great number 'of people who do not want to own their
own homes but wish to live in apartments or other rental units and they should
be looking after rent controls, which are not the answer as he felt it would
stymie further development and they would be stuck in pooly maintained prop-
erties.
Rich Chubon, Director of the Housing Authority, stated he supported the programs
recommended by the Planning Commission and staff to limit and control housing
developments within the city.
Matt O'Brien, Cal Poly student, wondered how suggested programs A,.B and C
would affect students who must rent living quarters and not be able to purchase
homes.
9:15.p.m. Mayor Schwartz declared a recess. 9:30 p:m. Mayor Schwartz called
the Council to order with Councilman Petterson absent.
Problem 13 - Convert condominium conversions. Conversion of apartments to
condominiums with a potent -ial source of lease -cost purchase housing displaces
renters into an already tight market and increases rent traumatically, if
purchase units are in turn maintained as rentals.
Policy - Condominium conversions would not be allowed unless there was'a-
reasonable supply of vacant rental units within the community to allow relo-
cation of displaced occupants when conversions are approved, the interest of '_...
the current tenants will be balanced with those of the conversion proponent.
Will'Geer stated-he supported authority to continue converting apartments to
condominiums. He felt this was one way in which a renter would . have the
opportunity to buy an apartment in which he /she is renting and normally at a
reduced rate.
Problem 15 - No children allowed. Most rental units are restricted to'adults,
while an increasing share of the populace having few or no children, many
households were excluded from suitable housing solely because they do have
children.
Policy - The city would encourage the widest possible choice of housing for
households wishing to live in the community.
Walt Lambert, Cal Poly Housing Officer, supported the provisions to provide
decent housing for adults with children in all areas of the city.
Lucy Amandson felt controls over allowing children in rentals should be extended
to the mobile home parks. She felt this was where the largest violations were
taking place.
J
L_ I
1
City Council Minutes
February 27, 1979.
Page 4
Mayor Schwartz asked if anyone in the audience had any other item they wished
to discuss on this matter that had been discussed in the 15 pr.oblems.presented
by the Planning Commission. No one appeared before the City Council. Mayor
Schwartz declared the public hearing closed.
The City Council then discussed what would . be the best way to arrange all the
information that was received from the public to date at these public hearings,
including the Planning Commission and staff recommendations, so that the City
Council could move right ahead with adoption of the Housing Element of the
General Plan. The Council felt the following areas should be reviewed by staff:
1. Format of report for Council adoption;
2. Prioritization of problems;
3. Clarification of programs recommended;
4. A time schedule for implementation of the various programs;
5. Coordination with other city advisory boards, committees and boards to
avoid possible inconsistency with policies of boards, commissions, and
staff members prior to Council adoption;
6. Staff suggested implementation plan in schedule to avoid confusing in
guidance of staff and advisory boards;
7. Effect that Land Use Element would have on the Housing Element; and
8. Complete report and provisions for enforcement of policies in the Housing
Element, including the cost of staff and other enforcement elements.
Council felt that these comments were for the guidance of the staff and not
specific requests. The matter. of the Housing Element of the General Plan was
continued for a final report by staff and Planning Commission.
3. Transit Svstem Bids.
Lee Walton, Administrative Officer, on behalf of the Council appointed committees -
to review the two bids received, stated that the Committee unanimously recommended
that the City Council reject the two bids received in favor of rebidding on an
amended contract which would hopefully transition into a franchise within two
years. The Administrative Officer continued that the City Council had received
one low bid from a very questionable and inexperienced entrepreneur who was
unable to meet the equipment specifications in the bid. On the other hand,
the city had received a very high bid from the present reliable operator. It
developed very quickly in interviews that the latter was high because of risks
that had been preceived in capitalizing new facilities and equipment over the
next three -year term of the contract. It appeared obvious that he had built in
a very substantial profit margin to accommodate this high -risk factor, aware that
few if any competitors would meet our current vehicle specifications on such
short notice might have also encouraged a higher bid. Nevertheless, the committee
agreed that a well- drafted franchise was the long -range solution that would best
protect the public interest while providing the operator a fair return. As you
know, the advantage of a franchise establishes the stability necessary for an
operator to finance equipment on more favorable terms. In;.return, it gives the
city the authority to approve rates based on a fair amount of return, rather t
than on the gamemanship of bidding. There is some element of risk in rebidding,
because the present operator may feel he must raise the rates even higher to pay
off existing debts over 18 months. However, he felt he understood that this
would not be prudent if the bidder intended to apply for a long -term franchise.
Therefore, based on the committee's recommendation, he would concur that the
bids should all be rejected and rebids be authorized immediately.
On motion of Councilman Jorgensen, seconded by Councilman Settle, that the City
Council reject all bids received on the transit system and authorize new bids
with the additional conditions.
Motion carried on the following roll call vote:
AYES: Councilmen Dunin, Jorgensen, Settle and Mayor Schwartz
NOES: None
ABSENT: Councilman Petterson