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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