HomeMy WebLinkAbout08/06/1979City_Councii..Minutes
July 23; 1979 - 12:15 p.m.
Page 2
On motion of Councilman.Jorgensen,_seconded by Councilwoman Billig, the
C.I.P. portion of the-1979/1980 budget was approved a§ amended by.the City
Council.
Motion carried on the - following roll call vote:
AYES:. .Councilmembers Jorgensen, Billig, Bond:, Dunin,.and Mayor Cooper
NOES: None
ABSENT: None
2. The City Council adjourned to.executive session at 1:25 p.m:'with
all..councilmembers.present.
3. The City Council reconvened.in regular session at-2:20 p.m. with
all councilmembers present.
4. There beirng.no.further.business to..come. before the.Council, Mayor.
Cooper:.adjourned the meeting at 2:25 p.m..to.12:10.p.m.; Monday, August 6, 1979.
Minutes approved by Council on: 9/18/79
Fitzpatrick, City. Clerk
M I.N U T E S
ADJOURNED MEETING OF THE CITY COUNCIL
CITY OF SAN.LUIS OBISPO
MONDAY,.AUGUST.6, 1979; 12:10 P.M.
COUNCIL.HEARING ROOM, CITY.HALL,.990 PALM STREET
SAN LUIS OBISPO, CALIFORNIA
Roll Call
Councilmembers
PRESENT: Melanie.Billig, Alan Bond, Ron Dunin, Jeff Jorgensen, and
Mayor Lynn R. Cooper
ABSENT: None
City Staff
PRESENT:. Leland.Walton,.. City.. Administrative .Officer;..George -Thacher,
...City.- Attorney; J.H. Fitzpatrick, City Clerk; Geoff.Grote,
Legal Assistant;.Henry Engen,.Community Development Director;
:Robert Mote, Utilities.Engirieer.
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1. Henry Engen, Community Development Director, stated that.over.the
past.year, at the Council.:s: request.; the Planning Commission -has been.working
on regulations.. for- ..the.conversion.of.apartments to..condominiums. .Both the
Council and.the Planning Commission had discussed basic content of these
regulations as part of the Housing-Element of the general plan.
He.continued_-that _ after..a public..hearing on June 27., 1979,.the Planning
Commission. voted 3. to 2, with 2.absent,...to.forward to.the,..Council the
proposed-condominium-conversion ordinance for their.consideration.
Henry Engen..stated.that.it.. was.:determined . that.condominiums differ from
.apartments in: some -. respects -and.. that _for..the.benefit for the public health,
safety, and welfare, such projects should be treated differently from
apartments. The regulations are intended to:
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City Council Minutes
August 6, 1979 - 12:10 p.m.
Page 2
1. Establish requirements and procedures for the conversion of
existing rental housing to residential condominiums;
2. Provide for compliance with the Housing Element of the general plan;
He continued that the report.transmitting the vacancy rate to the Planning
Commission and City Council would contain the estimated total number of
apartment units within the city, the number of units included within the
sample, the number of apartment complexes surveyed, and the vacancy rate,
expressed as a percentage rounded to the nearest one -tenth percent.
Miss Chris Cardel then presented the City Council a tabulation of an
informal survey of 1,000 apartment houses in the City dealing with vacancy
factors.
3. Assure that purchasers of converted condominiums are aware of the
condition of the structure which is offered for purchase;
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4. Provide design and property improvement standards for ccndominium
projects, both new and converted.
He then reviewed the various sections of the proposed ordinance dealing with
application requirements and documents necessary for the covenants, conditions,
restrictions, the property improvements, and the general conditions of the
ordinance. As part of the procedure for the condominium conversion ordinance,
the City Council and Planning Commission had tentatively endorsed the concept
of tying condominium conversion approvals to the availability of rental
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housing. Both the draft Housing Element and the draft Condominium Regulations
incorporate a three percent vacancy cut off point. He then presented, for
the Council's consideration, a procedure to determine the approximate rental
vacancy rate as required for condominium conversions. He stated that the
vacancy rate would-be established by a sample survey taken in March of each
year with the rate to be effective April 1 to the following March 31. The
vacancy rate to be used would be determined by a sample survey taken between
the dates effective. The vacancy rate would be determined by a sample of
all the multi - family dwellings usually offered or occupied as rentals in the
City of San Luis Obispo. The sample would be approximately 17 percent of
all units. The sample would be stratified so that apartment complexes of
various sizes and in various neighborhoods of the City would be included in
approximately the same proportion they represent to the total apartment supply.
The sample would be random in that each apartment complex within a neighbor-
hood or size category would have an equal chance of being selected. The
listing of apartments to be surveyed would be updated when, in the opinion
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of the Community Development Director, the total number or characteristics
of the pool of apartment units may have changed due to demolition, conversion,
or new construction.
He continued that the report.transmitting the vacancy rate to the Planning
Commission and City Council would contain the estimated total number of
apartment units within the city, the number of units included within the
sample, the number of apartment complexes surveyed, and the vacancy rate,
expressed as a percentage rounded to the nearest one -tenth percent.
Miss Chris Cardel then presented the City Council a tabulation of an
informal survey of 1,000 apartment houses in the City dealing with vacancy
factors.
Another question raised was what if the vacancy rate exceeded three percent
and there were several people waiting to convert, who would be the first;
and how would the City prevent so many apartments from being converted until
the next survey that renters are really put in a bind.
Henry Engen then reviewed several questions that had been raised by City
Council about the condominium. regulations. Mr. Engen suggested some
alternatives to dealing with problems in administrating the ordinance.
He said that the Council had supported the concept of tying conversion
approvals to the availability of.rental apartments in order to preserve
renters options. A three percent rental vacancy factor had been chosen
as an indicator that enough rental housing is available. The question
was whether this would be a costly and time - consuming process-to find out
what the rental vacancy rate was. He felt it was not, that it would take
about three-days of his time to set up the sample and one day to compile
and write up the results. He felt that a.student aide should be able to
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poll apartment managers in four or five days with a total cost of $400
for the first survey, and about half that for following surveys.
Another question raised was what if the vacancy rate exceeded three percent
and there were several people waiting to convert, who would be the first;
and how would the City prevent so many apartments from being converted until
the next survey that renters are really put in a bind.
City Council Minutes
August 6, 1979 - 12:10 p.m.
Page 3
Henry Engen suggested the following:
1. Set the design and improvement standards high enough to screen out
most existing apartments (far example, use current noise and energy
insulation standards or parking requirements so older properties
will be less feasible to convert.) This would make the condominiums
which are converted newer and more expensive than they would be
otherwise. He felt it was also a gamble because they don't know
how many rental units.wouM be converted under a given standard.
The proposed standards.were established as an end in themselves,
not a device to achieve a certain amount of conversion.
2. Limit the number of apartments converted in one year to the number
of new rental units added in the previous year. The numbers
would be very easy to determine. As a variation, the ratio could
be changed from.one -to -one to a higher or lower rate, so the
proportion of rental.housing could rise or fall more in tune with
changing market conditions. The one -to -one idea would at least
preserve the existing number of apartments.
3. Allow only a certain percent of the existing rental units to be
converted in any one year. This could delay conversions and
protect the existing rental stock from sudden reduction. He did
not know how this fraction would be determined. This.would also
be a gamble since the number chosen could be a lot higher or lower
than would occur without a limit.
Henry Engen felt that-1, 2,.or 3 could be used as substitutes for the three
percent rental cutoff. Assuming a limit on the number of conversions is
established, there is still the problem of deciding who gets to convert if
there are more proposed than those allowed. Any scheme of allocating
approvals among applicants- -other than first -come, first served - -would reqire
a definite filing period and-decision period related to the annual vacancy
survey and any other interval chosen.
He continued that the City could hold all applications received between
certain dates, then evaluate them under a rating scheme which would favor
those most suited to-owner occupancy. Criteria could include individual
open space, compliance with ordinance requirements with-minimum expense
or modification, fraction of tenants willing to purchase, availability of
comparable rental housing, or features that would more than comply with
ordinance requirements, such as a longer notification period, relocation
assistance, discounts to current.occupants, credit of rents during the
interim toward down payment, and.so on. Another possibility might be a
bidding procedure where converters would compete for the lowest sales
prices or the least profit per unit.
After this review by Mr. Engen, the Council then went through the condominium
conversion ordinance-section by section, making suggested amendments,
wording changes, corrections, and amplifications of conditions for Council
guidance. All these amendments and conditions as changed were approved
by Council consent.
On motion of Councilman Dunin,.seconded by Councilman Bond, that further
consideration of the condominium conversion ordinance should be continued
for further study to allow the staff to.prepare criteria, rating procedures,
etc. for conversion. The-staff was also directed to prepare an amendment
to the Housing Element of the general plan to.eliminate the three percent
rental vacancy rate as an indicator of availability of apartment housing.
Motion carried on the following roll call vote:
AYES: Councilmemhers Dunin, Bond, and Mayor Cooper
NOES: Councilmembers Billig and Jorgensen
ABSENT: None
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City Council Minutes
August 6, 1979 - 12:10 p.m.
Page 4
The city staff was further asked to send copies of the condominium conversion
criteria and-rating procedures for conversion to the Cardel family. The
staff was also requested to prepare an amendment to the general plan Housing
Element to eliminate the three percent vacancy factor.
2. The City Council considered..a communication from San Luis Obispo
Councty regarding.the.tentative subscriptions for supplemental water from
the Nacimiento Project.
The county requested that the City Council poll potential participants in
the project so that more detailed studies can be prepared for cost
estimating, etc.
After discussion by the City Council of the need for and the amount of
supplemental water needed, if any, it was common consent of the Council
that the 3,600 acre feet continued-to be used but that the county be informed
that this was for planning purposes only and not a definite commitment
to purchase water.
Robert Mote, Utilities Engineer, was directed to so inform the county of
San Luis Obispo.
3. The City Council considered a request from Eleanor Truocchio,
property owner adjacent to the City -owned property in Reservoir Canyon,
asking if they could lease this property from the City in order to erect
a gate on the Reservoir Canyon Road eliminating any vehicular traffic into
the City -owned property. .They.felt that this would be mutually beneficial
as it would reduce City liability, eliminate clean up, and protect the
neighbors' property. They would like a month -to -month lease just to protect
their property.
The City Council determined that the matter should be continued until the
Council had an opportunity to make an in- person inspection of the area.
4. On motion of Councilman Bond, seconded by Mayor Cooper, the following
resolution was introduced: Resolution No. 3915 (1979 Series), a resolution
of the Council..of the City of San.Luis Obispo calling a.special municipal
election to be held in said City on Tuesday, November 6, 1.979, and to be
consolidated with the state -wide special election to be held on said date
for the purpose of voting on salary increases for the Mayor and City Council
members.
Passed and adopted on the following roll call vote:
AYES: Councilmember Bond, Mayor Cooper, Councilmembers Billig, Dunin,
and Jorgensen.
NOES: None
ABSENT: None
On motion of Councilman Bond, seconded by Mayor Cooper, the following
resolution was introduced: Resolution.No. 3916 (1979 Series), a resolution
of the Council of.the City.of San Luis Obispo requesting the Board of
Supervisors of the County of San Luis Obispo to consolidate a special
municipal election with the state -wide general election to be held on
November 6, 1979, for the purpose of voting on salary increases for the
' Mayor and City Council members.
Passed and adopted on the following roll call vote:
AYES: Councilmember Bond, Mayor Cooper, Councilmembers Billig, Dunin,
and Jorgensen
NOES: None
ABSENT: None