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HomeMy WebLinkAboutCC Minutes 2001-04-02SRCC Minutes (Regular) 04/02/2001 Page 1 IN THE COUNCIL CHAMBER OF THE CITY OF SAN RAFAEL, MONDAY, APRIL 2, 2001 AT 8:00 P.M. Regular Meeting: San Rafael City Council Also Present: Rod Gould, City Manager Gary T. Ragghianti, City Attorney Jeanne M. Leoncini, City Clerk OPEN SESSION — COUNCIL CHAMBER — 8:12 PM: Present: Albert J. Boro, Mayor Cyr N. Miller, Vice -Mayor Paul M. Cohen, Councilmember Barbara Heller, Councilmember Absent: Gary 0. Phillips, Councilmember Mayor Boro announced the Closed Session Item No.1 would take place at the conclusion of the Regular City Council Meeting. ORAL COMMUNICATIONS OF AN URGENCY NATURE: None CONSENT CALENDAR: 8:12 PM Councilmember Heller moved and Councilmember Miller seconded, to approve the Consent Calendar, as follows: ITEM RECOMMENDED ACTION: 2. Summary of Legislation Affecting San Rafael (CM) — Approved staff recommendation: File 116 x 9-1 SB 106 Abandoned Vehicles Service Authority. Senator Bryon Sher— SUPPORT AB 81 Sales and Use Taxes. Assembly Members Carol Midgen and Dion Aroner — SUPPORT SB 910 General Plans Housing Elements. Senators Joe Dunn, John Burton, Ray Haynes and Dick Monteith — OPPOSE AB 86 Firefighting. Assembly Members Rod Pacheco and Richard Dickerson — SUPPORT Monthly Investment Report for the Month Ending February, 2001 (MS) — File 8-18 x 8-9 4. SECOND READING AND FINAL ADOPTION OF ORDINANCE NO. 1764 —AN ORDINANCE OF THE CITY OF SAN RAFAEL AMENDING THE ZONING MAP OF THE CITY OF SAN RAFAEL, ADOPTED BY REFERENCE BY SECTION 14.01.020 OF THE MUNICIPAL CODE OF SAN RAFAEL, CALIFORNIA SO AS TO RECLASSIFY CERTAIN REAL PROPERTY FROM PLANNED DEVELOPMENT — WETLAND OVERLAY (PD -WO) TO PLANNED DEVELOPMENT — WETLAND OVERLAY DISTRICT TO ALLOW FOR 40 NEW AIRPLANE HANGARS, TWO NEW MODULAR HOMES, A NEW 2,480 SQUARE FOOT NON - AVIATION BUILDING AND A MODIFIED ENTRY WITH PARKING LOT, LOCATED AT 397-400 SMITH RANCH ROAD (SAN RAFAEL AIRPORT) (RE: ZC00-15, 397-400 Smith Ranch Road) AP NO. 155-230-10, 11, 12, 13, 14 & 15) (CD) — File 10-3 x 10-5 x 10-7 x 12-12 Accepted Monthly Investment Report for the month Ending February, 2001. Approved final adoption of Ordinance No. 1764. SRCC Minutes (Regular) 04/02/2001 Page 1 CONSENT CALENDAR (Cont.): n. 7 Resolution Approving the Application for Grant Funds from the Association of Bay Area Governments (ABAG) for Improvements to the Shoreline Park Sections of the San Francisco Bay Trail (CD) — File 111 x 5-1-324 x 9-3-66 x 202 Resolution Authorizing the Temporary Closing of Mission Street Between "C" and "E" Streets on Saturday, April 14 from 1 p.m. to 5 p.m. to Accommodate Pedestrian Traffic to the Alice in Wonderland Egg Hunt at Falkirk Cultural Center (Cult. Aff.) — File 11-19 x 9-3-84 Resolution of Appreciation to Peacock Garden Club to Commemorate Arbor Day 2001 re Tree Planting at Spinnaker Point (PW) — File 102 x 109 8. Resolution Accepting Grant Deed of Easement for Construction and Maintenance for Storm Drain — John Velcich and Rena Velcich, 57 Jordan Street, APN 13-072-20 (PW) — File 2-4-27 x 9-3-40 E 10 11. 12 Resolution Accepting Grant Deed for Right of Way — 111 Merrydale Road (111 Merrydale Road, LLC) (PW) — File 2-5-43 x 9-3-40 Resolution Accepting Grant Deed of Easement for Construction and Maintenance for Storm Drain — San Rafael City School District (280 Woodland Avenue, APN 13-071-44) (PW) — File 2-4-28 x 9-2-1 Resolution Authorizing Appropriation and Transfer of Funds in the Amount of $300,000 from the City to the Redevelopment Agency for the Construction of Albert Park Lane Improvements from the Albert Park Lane Improvement Fund (110-4421-738-8000) (PW) File 8-14 x 4-1-531 x (SRRA) R-140 #8 Resolutions Authorizing Street Closures for the 12th Season of the Weekly Downtown Farmers' Market Festival, the 3rd Season of the Mercado Del Canal, the 14th Annual May Madness Classic Car Parade, and the Italian Street Painting Festival 2001 (RA) — File 11-19 x (SRRA) R-181 SRCC Minutes (Regular) 04/02/2001 Page 2 RECOMMENDED ACTION: RESOLUTION NO. 10796 — RESOLUTION APPROVING THE APPLICATION FOR GRANT FUNDS FROM THE ASSOCIATION OF BAY AREA GOVERNMENTS FOR IMPROVEMENTS TO THE SHORELINE PARK SECTION OF THE SAN FRANCISCO BAY TRAIL RESOLUTION NO. 10797 — RESOLUTION AUTHORIZING THE TEMPORARY CLOSURE OF MISSION AVENUE BETWEEN C STREET AND E STREET FOR THE ANNUAL FALKIRK EGG HUNT ON SATURDAY, APRIL 14, 2001 FROM 1:00 PM. TO 5:00 PM RESOLUTION NO. 10798 — RESOLUTION OF APPRECIATION TO PEACOCK GARDEN CLUB TO COMMEMORATE ARBOR DAY 2001 RE TREE PLANTING AT SPINNAKER POINT RESOLUTION NO. 10799 — RESOLUTION ACCEPTING GRANT DEED OF EASEMENT FOR CONSTRUCTION AND MAINTENANCE OF STORM DRAIN — JOHN VELCICH AND RENA VELCICH (57 JORDAN STREET, APN. 13-072-20) RESOLUTION NO. 10800 — RESOLUTION ACCEPTING GRANT DEED FOR RIGHT OF WAY — 111 MERRYDALE ROAD (111 MERRYDALE ROAD, LLC) RESOLUTION NO. 10801 — RESOLUTION ACCEPTING GRANT DEED OF EASEMENT FOR CONSTRUCTION AND MAINTENANCE OF STORM DRAIN — SAN RAFAEL CITY SCHOOL DISTRICT (280 WOODLAND AVENUE, APN. 13-071-440) RESOLUTION NO. 10802— RESOLUTION AUTHORIZING APPROPRIATION AND TRANSFER OF FUNDS IN THE AMOUNT OF $300,000.00 FROM THE CITY TO THE SAN RAFAEL REDEVELOPMENT AGENCY FOR THE CONSTRUCTION OF ALBERT PARK LANE IMPROVEMENTS, FROM THE ALBERT PARK LANE IMPROVEMENT FUND (110- 4421-738-8000) a) RESOLUTION NO. 10803 — RESOLUTION AUTHORIZING THE TEMPORARY CLOSURE OF CITY STREETS FOR THE 14TH ANNUAL GREG BORRELLI'S MAY MADNESS CLASSIC CAR PARADE ON MAY 19, 2001 b) RESOLUTION NO. 10804 — RESOLUTION AUTHORIZING THE TEMPORARY CLOSURE OF CITY STREETS FOR THE YOUTH IN ARTS ITALIAN STREET PAINTING FESTIVAL 2001 ON JUNE 9 — 10, 2001 SRCC Minutes (Regular) 04/02/2001 Page 2 AYES: COUNCILMEMBERS: NOES: COUNCILMEMBERS: ABSENT: COUNCILMEMBERS: PUBLIC HEARINGS: SRCC Minutes (Regular) 04/02/2001 Page 3 c) RESOLUTION NO. 10805 — RESOLUTION AUTHORIZING THE TEMPORARY CLOSURE OF CITY STREETS FOR THE WEEKLY DOWNTOWN FARMERS' MARKET FESTIVAL ON THURSDAY EVENINGS FROM MAY 3 —OCTOBER 25, 2001 d) RESOLUTION NO. 10806 — RESOLUTION AUTHORIZING THE TEMPORARY CLOSURE OF A CITY STREET FOR THE WEEKLY MERCADO DEL CANAL ON SUNDAYS FROM JUNE 3 — SEPTEMBER 30, 2001 Cohen, Heller, Miller, and Mayor Boro None Phillips 13. Public Hearing Re: RESOLUTION APPROVING A FINANCING TO BE UNDERTAKEN BY THE CALIFORNIA STATEWIDE COMMUNITIES DEVELOPMENT AUTHORITY TO BENEFIT SAINT MARK'S SCHOOL, PURSUANT TO SECTION 147(F) OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED, FOR THE FINANCING OF CERTAIN PROJECTS FROM THE SALES OF TAX-EXEMPT BONDS (MS) — FILE 8-9 x 10-3 x 10-5 x 10-7 Assistant City Manager Ken Nordhoff, stated that at the February 20, 2001 meeting, Council approved the final permits, plans and environmental review of the Saint Mark's school expansion in North San Rafael. He reported that the school is working with the California statewide Communities Development Authority to issue private activity bonds, and as part of this a public hearing is required to be held in the community in which those facilities are to be expanded, in this case San Rafael. Mr. Nordhoff noted this is required under IRS Code Section 147(f). Referring to the staff report, Mr. Nordhoff stated the City is not a party to this transaction, is not issuing the debt and will have no financial responsibility for the bonds, rather, Council is making findings which will allow the financing to go forward on behalf of the school. Mr. Nordhoff noted that present this evening was Sean Tierney, Hawkins Delafield & Wood, the bond counsel, together with representatives from the school who would answer any pertinent questions. Mayor Boro declared the public hearing opened and there being no comment from the audience, closed the public hearing. Councilmember Heller moved and Councilmember Miller seconded, to adopt the Resolution. RESOLUTION NO. 10807 — RESOLUTION APPROVING A FINANCING TO BE UNDERTAKEN BY THE CALIFORNIA STATEWIDE COMMUNITIES DEVELOPMENT AUTHORITY TO BENEFIT SAINT MARK'S SCHOOL AYES: COUNCILMEMBERS: Cohen, Heller, Miller, and Mayor Boro NOES: COUNCILMEMBERS: None ABSENT: COUNCILMEMBERS: Phillips 14. Public Hearing Re: CONSIDERATION OF ISSUANCE OF CERTIFICATE OF CONVENIENCE TO KD TAXI OFFICE SERVICES, INC., DBA MARIN CAB COMPANY; KATHERINE KING AND JOHN DEAN, OWNERS (PD) — FILE 9-9 Mayor Boro declared the public hearing opened and continued to the City Council meeting of May 7, 2001, at the request of Katherine King, Marin Cab Company owner, due to illness. SRCC Minutes (Regular) 04/02/2001 Page 3 SRCC Minutes (Regular) 04/02/2001 Page 4 NEW BUSINESS: 15. REPORT AND RECOMMENDATION RE RISING RESIDENTIAL RENTS (CM) — FILE 13-16 x 13-7-1 At the outset, City Manager Rod Gould thanked Isabel Garcia Bedoya for undertaking the English/Spanish translation throughout the hearing, and for translating for those who wished to address the Council in Spanish. Mr. Gould reported that last Fall, several dozen residents of San Rafael approached the City Council, expressing concern regarding rapidly rising rents in the City. It was feared that rent increases in the range of several hundred dollars per year would force them out of San Rafael, giving up a lifestyle to which they had become accustomed. At that time, Council directed the City to engage the community in a discussion of rapidly rising rents and ascertain what practical solutions were available to help deal with the problem. Council also requested provision of as much detailed information as possible concerning the actual experience of rising rents, and to this end, staff updated a residential rental survey, the results of which are highlighted on page 2 of the staff report, representing the experience of the past eighteen months. Mr. Gould reported that on November 18, 2000, a town meeting was held at the B Street Recreation Center to allow people to express their experiences with rising rents and to pose possible solutions or improvements for Council consideration. Exhibit A of the staff report summarizes the issues and options raised at that meeting, attended by over 100 people who gave up half of their Saturday to address this serious issue. Mr. Gould stated it was then the task of staff to analyze the proposals put forward in an effort to discern their pros and cons, financial consequences and who would be the lead, as in many cases the actions called for were not necessarily governmental in nature; they required others in the community to take the lead. Prior to a second town meeting on February 3, 2001, a report was provided to the community, attached to the staff report as Exhibit B, which attempted to summarize the major proposals discussed on November 18, 2000 and provide the background and analyses. Mr. Gould reported that the February 3, 2001 meeting was attended by over 200 people, and was broken down into four groups to discuss the major findings and receive further input from the community regarding what actions were desirable and deemed to be beneficial on this regional problem. He reported that since then a number of additional meetings had been held with various housing and tenants groups, property owners and others, to formulate further thoughts and feedback leading to this evening's meeting. He thanked the numerous people who had written, called, sat down to talk or otherwise expressed their opinions and offered their support. Summarizing staff's conclusions, Mr. Gould stated that based on research, analyses and discussions, it was recognized that this problem is one of supply and demand, with a situation not peculiar to San Rafael or the North Bay, but the entire Bay Area region, where the demand for housing greatly outstrips the supply, consequently, causing increases in rent and housing prices and putting immense pressures on our populations. Mr. Gould stated that San Rafael recognizes its part in increasing the supply of housing, especially affordable housing in the immediate term, in the coming years, in order to begin to meet the demand. The General Plan Update, which is currently underway, represents real opportunity to examine barriers to the supply of housing, whether it be zoning, parking, height or density requirements or the like. He noted the Association of Bay Area Governments has set a target for the City of San Rafael to generate 2,090 units of additional housing in the next six years to meet regional and state goals. Mr. Gould contrasted this with the previous six years where it was possible to add 811 units of housing in San Rafael; therefore, the challenge was monumental. Of those 2,090 units, one-third are required to be designated for low and moderate income owners or renters. Referring to the census survey results which were made public over the previous weekend, Mr. Gould noted the results demonstrated that San Rafael grew from a population in 1990 of 48,458, to a population in the year 2000, as estimated by the census takers, of 56,063 residents, an increase of 7,605 people. During that period of time, 1,805 additional units of housing were generated, compared to a population growth of 7,605, which indicates the lure of San Rafael, the jobs that exist and the pressure on the housing stock. Regarding the Below Market Rate Program, Mr. Gould stated he believed this program was working and needed to be expanded. He anticipated legislation which would provide serious sanctions for cities which do not have approved housing elements; Senator Burton has a bill presently working its way through the legislature which would impose severe monetary sanctions and cut off state gas tax money for cities without approved housing elements; therefore, there is tremendous pressure on San Rafael. City Manager Gould stated that the hard work done over fifteen months by the St. Vincent's/Silveira Task Force, identifying those lands as a primary housing opportunity for between 500 and 1,800 new units, is SRCC Minutes (Regular) 04/02/2001 Page 4 SRCC Minutes (Regular) 04/02/2001 Page 5 key to the success of achieving the state goals. He reported that the City would continue to pursue in -fill and redevelopment housing such as that at the Rafael Town Center, where of 113 units on the third, fourth and fifth floors, 38 are affordable, but the current scarcity of sites makes the project so much more daunting. Mr. Gould noted that in the next few months, a study session would be held to evaluate City owned and perhaps, school owned, properties for the provision of housing for City and school workers. The City has been working with several non -profits in an effort to purchase existing properties in order to keep the rents affordable. EAH, BRIDGE Housing, the Canal Community Alliance, and Buckelew programs have been working with San Rafael, using City, State and Federal dollars, and since February 3rd some progress has been made. Mr. Gould confirmed the 55 Fairfax apartment complex is presently under contract; this complex comprises 40 units which, if the City is successful, will be kept affordable in perpetuity. Further, the Agency has decided to assist the Canal Community Alliance with the purchase of another four -unit condominium and this evening the purchase of one unit at Boyd Court was approved. Community Development Block Grant Funds have also been provided to Homeward Bound to buy affordability and other alternative means of achieving ownership are being considered, including methods such as land trusts, cooperative housing and sweat equity. Mr. Gould reported that during meetings it was made clear by property owners in particular, that utility expenses were driving up the cost of housing. He realized everyone was cognizant of the present energy crisis and the fact that there was no apparent end in sight; however, Mr. Gould noted it may be possible to work at lowering sewer and water fees for high density housing, especially affordable housing, in an effort to provide rate reductions, which it is anticipated would help moderate rents. It is also hoped to work with the Chamber of Commerce and various housing advocacy groups to educate San Rafael residents about the advantages of increasing the affordable stock here. This, noted Mr. Gould, is key, as the entire community needs to understand how important this is to the quality of life in San Rafael. Regarding tenant assistance, Mr. Gould stated job training had been discussed with a view to raising incomes, thereby rendering housing more affordable. He reported that the City of San Rafael, under Councilmember Heller's leadership, had convinced the other cities in Marin County to make funding the so- called "Inreach Job Connection" the number one funding request of our state legislators this year, approximately $175,000 of funds, which would help match job opportunities in public sector jobs and government agencies with people who are under -employed in the community. Further, reported Mr. Gould, Councilmember Cohen had been working with the County of Marin to coordinate with the State and Caltrans to ensure that the jobs which will be necessary for the gap widening project on the freeway and perhaps, even the seismic retrofit of the Bay Bridge, go to our residents, and provide construction training to these people to assist them in assuming these well paid construction jobs; thereby, providing bright futures in our area. In this respect, noted Mr. Gould, there is great excitement regarding job training and matching opportunities. Regarding tenant education and organizing, City Manager Gould stated this was very important in that tenants need to have a larger voice, as evidenced in Contempo Marin, noting Mr. Coleman Persily, a long time leader at Contempo Marin, was present this evening. Currently, there are organizations such as Marin Legal Aid, the Housing Authority, Fair Housing, Mediation Services and the Housing Assist Line which are available to people, but he felt more needed to be done and the City would be very supportive of funding to provide better tenant organizing and education, although staff hastened to point out that this money should not come from the government, lest it should appear to be an attempt to influence the tenant organization and its activities. Mr. Gould noted there might be an application to the Marin Community Foundation for tenant organizing, and requested that the City be allowed to support this actively. Addressing down -payment, deposit and rent assistance, Mr. Gould reported analyses demonstrated that the Marin Housing Authority operates these programs; they are terribly underfunded and it was unclear if they are properly structured at present. Other housing groups were looked at to take the lead in raising more money and to endeavor to decide where the money could best be used. He stated that this evening Council took a small step by offering a Below Market Rate deposit program for the City's own use and he considered this a good step; money is also provided annually to Ritter House to help with stop gap assistance when people are short a month and are otherwise likely to lose their house, and this will be continued. City Manager Gould stated that Code Enforcement is an area where it is felt the City needs to do a lot more work as City Government, noting that currently the City has responsibility for enforcing the housing code in the Canal neighborhood, and the County of Marin has responsibility for the remainder of the units in the City. Mr. Gould noted that under Bob Brown's leadership in Community Development there had been some conversations with the County with regard to assuming control of Citywide residential Code Enforcement, and the County appeared to be amenable, even to the point of turning over its Code Enforcement funding to San Rafael to enable the task to be carried out more efficiently. Staff feels this SRCC Minutes (Regular) 04/02/2001 Page 5 SRCC Minutes (Regular) 04/02/2001 Page 6 will entail hiring two additional two Code Enforcement Officers, and as part of the Budget hearings, a budget option which sets forth how this could be funded and organized would be put forward. Mr. Gould stated that Redevelopment Director, Nancy Mackle, reported that the C.A.S.H. program, offered by the Redevelopment Agency to allow property owners low interest loans in exchange for affordability covenants, is back in play and as there is a very interested property owner, it may be possible to act on this program very shortly. City Manager Gould reported that by far the most difficult and vexing suggestion put forth during the community meetings involved rent control or stabilization. He noted many people who are struggling and paying their rapidly increasing rents felt that the City of San Rafael should examine what cities like Oakland, Berkeley, Santa Monica, San Francisco and New York have done in terms of rent control, and emulate those practices as a way of putting a limit on rent increases. Staff studied these examples and found that although rent control or stabilization could provide short-term protection to tenants in place, in the medium and long term, it tended to limit the number of affordable housing units in the Cities in which it is in place; thus, having the exact opposite intended effect. It was also noted that where rent control is in effect there is generally a decline in maintenance and safety in the housing stock. Mr. Gould noted that rent control is constantly under attack in the legislature; state law appears to change every two years, further limiting its applicability, and litigation is almost guaranteed should this route be chosen. Therefore, while there is an ardent desire to offer a governmental solution this evening, staff could not recommend rent control as a feasible alternative at this time and he recognized this was disappointing to a number of people. City Manager Gould stated that one of the suggestions in the staff report of February 3, 2001 was for a Rental Standards Ordinance. This was not to be confused with rent control, but simply an effort to put some outer limits on how rent increases would be carried out in San Rafael. There were discussions with numerous groups regarding the Rental Standards Ordinance at the February 3, 2001 Town Meeting and since, and it was determined that many of the tenants' organizations were unimpressed with this Ordinance, as were many of the property owners, for almost opposite reasons. The property owners observed it as unwanted intervention in the marketplace and a stepping stone to rent control, and many of the tenants saw it as toothless and lacking in enforceability. Mr. Gould stated he was pleased to report that since February 3, 2001 a voluntary association of property owners in San Rafael had been evaluating the issue; they recognized that indeed, there is a problem with rapidly rising rents and wished to take voluntary measures to begin to cope with it. Mr. Gould reported that Melissa Prandi, Prandi Properties, Katherine Higgins and Al Aramburu, the leaders of this effort, would be speakers this evening; they had organized a little over 100 property owners, representing over 1,000 units, to agree to certain principles on how rents would be managed in San Rafael. These would include limiting rent increases to once per year and providing 60 -day Notices prior to imposing a rent increase; currently state law dictates that 30 days' notice must be given unless the rent increase is over 10%. In San Rafael the standard would be 60 days' notice. The agreement would also include limiting rent increases to less than 10%, vowing to keep the units up to code in maintenance and repair, and most importantly, in Mr. Gould's opinion, reaching out to other property owners in an effort to convince them to live by the same principles, and intervening to persuade those who might be raising their rents unnecessarily high or causing problems in the rental market, to moderate or reconsider their behavior. It had been decided that this agreement, which would be signed by the property owners, would be posted in the entryways of the apartment complexes involved, would be on record with the City and available to the public, and would make the tenants aware of the fact that they had signed this agreement and intended to live by it. City Manager Gould stated it was recognized that there may be 6,000 — 7,000 units and apartments of over 5 units in San Rafael and therefore, it would be some time before the majority of the units would fall under these voluntary guidelines. He reported that there were lots of discussions on how this voluntary effort would be monitored, and the San Rafael Property Owners' Association had offered to receive complaints, investigate them and try to resolve the issues, reporting back to the City with their findings. Mr. Gould stated that as this proposal was moving through, staff thought it would be a good idea to acquaint some of the tenants and their representatives with the fact that this voluntary effort was being proposed. To this end, a meeting was held at the B Street Recreation Center approximately 6 weeks ago. As a result of this meeting, there was some frank discussion, and attached to the staff report is the response from the tenants to the voluntary effort. Summarizing this, Mr. Gould stated the tenants thought it was admirable that the property owners acknowledged the problem and were willing to do some things to try to improve the situation; however, they were concerned that there are other property owners who would not be so responsible and would not show similar care and concern; therefore, they wish to see something much more legally binding and enforceable which would provide them greater assurances and predictability regarding their rents. Mr. Gould reported that this fact was shared with the property owners. SRCC Minutes (Regular) 04/02/2001 Page 6 SRCC Minutes (Regular) 04/02/2001 Page 7 Another suggestion, reported Mr. Gould, which staff deems to have merit is that to truly monitor the situation, perhaps the City Council should consider postponing legislating anything like a Rental Standards Ordinance in order to allow this voluntary effort to go forward, as it would be necessary to have some monitoring and facts regarding how it is actually working. The tenants' organizers suggested that if the City were to embark on this path, it would be best to have a neutral third party receive the complaints, do some cursory investigation and report to the Council periodically as to the findings. Mr. Gould reported that this morning there was a case study which demonstrated the promise and potential of this voluntary effort. Without revealing names or locations, Mr. Gould stated that in recent weeks staff had become aware of some proposed evictions in an apartment in San Rafael, which were viewed by the tenants involved as retaliatory for tenant organizing. Some investigations were carried out with tenants and Code Enforcement, to no avail. The leaders of this voluntary effort contacted the property owners and manager of the apartment complex involved, and convinced them to come to City Hall this morning to discuss the situation. Rent increases, Code Enforcement and unjust evictions were discussed, reported Mr. Gould, and at the conclusion of the meeting the property owners involved chose to rescind the 30 -day Notice of Eviction to a family in our midst, and to agree to sign the voluntary principles set forth by the Property Owners Association. This, stated Mr. Gould, was viewed as proof that this communication and peer pressure by the property owners could be effective, not in all cases, but in some. City Manager Gould stated that Mayor Boro had requested staff to be more specific as to how this could work, and to the best of their ability at this point, with further refinements pending, Mr. Gould suggested consideration of the fact that if Council was intrigued by the idea of a voluntary rent restraint program in San Rafael, the property owners could be encouraged to sign up as many of their members as possible to commit fully to the guidelines described and make these commitments as public as possible. Council could also allocate some money for the City to contract with a third -party non-profit organization which would be the recipient of calls of complaints regarding unjust rent increases or rental practices; it would be the mission of this third -party non-profit to receive the complaints and carry out initial investigation in cooperation with the Voluntary Property Owners Association, and where possible, arrange for meetings, not full blown mediation, to have discussion such as that of this morning, in an effort to resolve problems before they fester and people are hurt. Mr. Gould stated staff felt this was an approach worthy of Council's consideration. Regarding property management, Mr. Gould stated that this needed to be improved in San Rafael and he noted that state law requires that apartment properties of over ten units have a manager on site to deal with tenant issues and property maintenance issues, and staff proposed that if Council agreed to enhance the Code Enforcement effort, that this requirement should be enforced very seriously in San Rafael. This, coupled with the Code Enforcement, would improve living conditions in the City. In conclusion, Mr. Gould stated that the overall recommendations were set forth on the cover page of the staff report, and staff would be happy to hear from the Council and community on this important matter. In terms of training programs and partnerships in training, Councilmember Miller inquired if there was provision for income to the participants of this particular training program, as it could not be expected that people leave their work to train without income. Responding, Mr. Gould stated that if the request is granted by the state, there would be sufficient funding to provide stipends for those in vocational training to take advantage of the better jobs. On the question of the current state law for noticing requirements, Councilmember Cohen requested confirmation as to whether this was 60 days' notice for increases of 10% or more. Mr. Gould responded in the affirmative and stated that increases of less than 10%, under state law, only require a 30 -day Notice. The voluntary agreement is for 60 days' notice across the board, regardless of the size of the rent increase. Regarding Councilmember Heller's question as to whether there was a maximum limit on rent increases, Mr. Gould responded in the negative. Mayor Boro stated everyone who wished to speak would be accommodated, but in the first instance he invited a representative of the property owners to explain the voluntary program, subsequently a representative for the tenants collectively, to be followed by the audience in general. Al Aramburu, Governmental Affairs Director, Marin Association of Realtors, Inc. stated he had copies of his testimony for the record and also some additional material. He thanked Council for the opportunity to speak on the rising rent situation in San Rafael and also City Manager Rod Gould, who had done a superb job, together with Nancy Mackle and Stephanie Lovette, Redevelopment Agency, all of whom had been tremendously helpful from last Fall until now. He thanked the property owners and managers who had come to the table with this voluntary process. SRCC Minutes (Regular) 04/02/2001 Page 7 SRCC Minutes (Regular) 04/02/2001 Page 8 Mr. Aramburu stated he would focus on the logistical side and recapped what the voluntary agreement states: • limiting rent increases to (not) more than once a year for existing tenants; • giving existing tenants at least 60 days advance notice for all rent increases, even when less than 10%; • keeping the amount of increases for existing tenants to less than 10% - this is by no means a set figure, it is no greater than, and that number derives from the rent mediation ordinance; • maintaining the buildings in a safe condition; • repairing unsafe conditions in a timely manner; and • encouraging other property owners to abide by these same principles. He stated the actual number of units under this umbrella is 1,324, and he submitted a copy of the volunteer agreements, with his business card, so they may be returned. Mr. Aramburu stated that Vince DeMartini, San Rafael attorney, had drafted Articles of Association for the San Rafael Apartment Owners Association, the three founders being Melissa Prandi, Katherine Higgins and Mr. Aramburu. He stated: The specific non-profit purpose for which this Association is organized is to: a) aid and support the efforts of the City of San Rafael to achieve affordable and safe housing for the tenant community; b) maintain the property rights of apartment owners and encourage positive communication between owners and tenants; c) property owners who have signed the volunteer agreement will post copies of the agreement on their respective properties in English, Spanish and additional languages as recommended by the City; d) a telephone number will be included in the posted agreement; calls to this number will be answered in a timely and courteous fashion - Mr. Aramburu suggested that people could also leave the message in a dialect most comfortable to them; e) The new Association will be glad to interact with the monitoring agency selected by the City in evaluating the procedures established, and quarterly performance reports will be provided to the City. The Association will continue to enlist the support of property owners who have not yet signed the volunteer agreements, and will provide periodic status reports. Mr. Aramburu stated that these were all issues the City Manager and staff had brought up, and the Association had agreed to all of them. On behalf of the Property owners and property managers, Mr. Aramburu thanked everyone for recommending the voluntary program, believing that persuasion was even more effective than legislation and would be a lot less cumbersome for the City of San Rafael. He was confident that this approach would be successful. He referred to a San Francisco Chronicle article from the previous week which reported on the rental market softening throughout the Bay Area, and stated that normal market forces could ameliorate the rent situation and not necessarily government action. Making reference to some of the agreements which had been signed, Mr. Aramburu stated there was a wide spectrum in the number of units being signed up and he encouraged people to look at the positive side; it was not a monolithic international organization owning houses, rather ordinary owners renting their property. Mr. Aramburu gave a short address in Spanish; thereafter, thanking the Mayor and Councilmembers, and stating that should anyone have questions he could be reached at 517-1011. With respect to the notices, Mayor Boro inquired if they could be posted in multiple languages, to which Mr. Aramburu responded affirmatively. Mayor Boro requested clarification on a concern of the tenants with respect to privacy in contacting a third party, and stated that as outlined by City Manager Gould, the third party would be contacted and would work with Mr. Aramburu, whose organization would go out and attempt to resolve the issue; Mr. Aramburu confirmed this would be the process. Councilmember Cohen inquired if the telephone number in the notice would be that of the monitoring organization, not the non-profit organization. Replying, Mr. Aramburu stated this would be so; however, if Council wished to work this out it was one of the details they would stipulate to. SRCC Minutes (Regular) 04/02/2001 Page 8 SRCC Minutes (Regular) 04/02/2001 Page 9 Jessuina Perez, Canal Tenants' Association, stated they met with a group of property owners in connection with the voluntary agreement, which they felt did not go far enough in that it does not cover a substantial number of units to protect most of the tenants. Her Association was of the opinion that to wait a year for this to work out was too long, as a lot of people would have been evicted by then. The other issue pertained to a great deal of retaliation, and when people organize and take a stand to fight for their rights they should not stand alone. It was known, she stated, that people were being evicted even for requesting a simple inspection. Ms. Perez noted that the property owners stated in the voluntary agreement that they would keep the buildings in good condition; however, the law already requires this; therefore, the property owners are not giving anything. Ms. Perez stated that buying buildings and renting them out is nothing but a business and should be treated as such; therefore, every law which applies to property owners should be strictly applied. She stated that if the voluntary agreement is proceeded with, she would strongly recommend that Code Enforcement be more stringent with inspections and fines, as she was tired of property owners requesting a waiver of fines, but a rent increase is never waived. She stated it was very important that all the problem property owners also come on board this voluntary agreement and her organization would be happy to provide a list of these to those signing the agreement, for follow-up; then they would believe this is going to work, which she doubted. Ms. Perez stated they would continue organizing to ensure people knew their rights and would come to meetings every month, if possible, to apprise the Council of what is happening outside. Mayor Boro stated Ms. Perez made a comment at the outset to the effect that a year is too long and asked for elaboration on this. Ms. Perez stated that if Council adopted this voluntary agreement, a year would be too long, rather quarterly reporting would be more appropriate. In terms of the apartments with particular concerns, Councilmember Cohen inquired if Ms. Perez had seen any list of those apartment owners who had signed the agreement. She stated her understanding was that the list would be made public at this meeting tonight. Councilmember Cohen confirmed this was the list Mr. Aramburu submitted, and when Ms. Perez had studied it he would encourage her to work with the Association to identify those of most concern. Councilmember Miller inquired if Ms. Perez had a list of the other property owners. She stated she did not have it with her; however, she knew some of the names and would be happy to submit a list of problem property owners. She confirmed for Councilmember Miller that she would work with Mr. Aramburu. Mayor Boro opened the public process, requesting speakers identify themselves, address the issue, and limit comments to three minutes to enable as many as possible to speak. Coleman Persily, tenant, stated that based on the results of the informative sessions called by City Manager Gould there was no question of the need for a remedy for the housing situation, and particularly for a remedy for rent increases. The City Council represents people, as well as monetary interests; it supports Police and Fire Departments and Emergency Services to protect people and property. Mr. Persily requested that Council respond to a rent increase emergency, stating that 40% of the residents of San Rafael are tenants, who need help now. He stated that a small group of landlords were asking for a voluntary limit of 10% per year; this, however, is an emergency which could not wait for possible landlord cooperation, and requested a moratorium on rent increases with a limit of 5% per year, effective immediately. He noted landlords with four or less apartments could be exempt, as could new buildings. Mr. Persily urged Councilmembers not to turn their backs on low and moderate income residents and the working class citizens of San Rafael. Melanie Kramer, San Rafael, stated she had a different prospective this evening and on behalf of public servants had written the following: A Meditation — Heroes Every Day They step into the line of fire knowing, but unblinking, unwavering They stand ground at the fire line, dying for the love of duty, honor and loyalty Some write parking tickets, others collect them They smile when we are difficult, support us with genuine affection and tenderness Walk in grace and just do the job every day Their names are legion, they are every man and every woman How do we honor them By demanding their devotion, courting their sacrifice and counting it as our own and our right And by paying them so little that God shudders when he watches us Shame on us No real community exists until those good enough to serve here are good enough to live here In conclusion, Ms. Kramer quoted some passages from the Gospel according to Saint Paul, first letter to SRCC Minutes (Regular) 04/02/2001 Page 9 SRCC Minutes (Regular) 04/02/2001 Page 10 the Corinthians, Chapter 13 "Though I speak with the tongues of men and angels and have not charity I am become as sounding brass or as a tinkling symbol and though I have the gift of prophecy and understand all mysteries and all knowledge, and though I have all faith so that I can remove mountains and have not charity, I am nothing, and though I bestow all my goods to feed the poor and though I give my body to be burned and have not charity it profited me nothing. When I was a child I spoke as a child, I understood as a child, I thought as a child, but when I became an adult I put away childish things. For now we see through a glass darkly but then face to face. Now I know in part but then I shall know even as I am known, and now abideth faith, hope and charity, these three, but the greatest of these is charity." Ms. Kramer stated that the sign she carried this evening declared Parity not Charity; parity for everyone, public servants were at the top of her list, parity was not charity and she urged working this out together. Margarita Reese, 20 Marian Court, through a translator, stated that due to the rent increases at 16 and 20 Marian Court, a Tenant Association of Canal had been formed. She stated that in December 1999 the landlord raised the rent by $50, in February 2000, the rent was raised for some people, by $100 per month and others by $150 per month. In June of 2000 the rents were raised again; some by $100 and others by $150 and in September, 2000 rents were further raised by either $100 or $150. Ms. Reese stated that in September 2000, all the tenants at 16 and 20 Marian Court stopped the rent increase; a letter was written to the landlord informing him the tenants were not in agreement with these increases; however, the landlord gave them three days to comply and they did so. She noted the apartments were in a really bad state. Ms. Reese stated that in October of 2000 the tenants discussed the problems with the City and have continued meeting in their apartments, to become more familiar with their rights as tenants. She stated that in the same month inspections took place in their buildings and 93 code violations were found. Ms. Reese stated that in December, 2000 the landlord decided to clean the walls of a tenant's apartment with bleach; the tenant at the time informed the landlord he was allergic to this chemical; however, the landlord insisted on proceeding and threatened the tenant with eviction if he could not clean the walls. The Tenant Association wrote to the landlord and he was forbidden to use the bleach. Continuing, Ms. Reese reported that on the same day of the re -inspections the manager requested to come into her apartment at 7:00 a.m. to carry out repairs. She did not allow him entry as it was too early and he had not given notice. The culmination of this was that on March 6, 2001 the landlord gave Ms. Reese a 30 -day Notice of Eviction, which she is fighting with a private lawyer, costing $250 per hour. She reported that all of the tenants are in agreement to fight for their rights, as they know the law and are protected and if they organize they have rights. Regarding the cost of the litigation, Ms. Reese stated her lawyer had informed her it could accumulate to at least $1,000; however, they are willing to pay this personally, whether it be from the sales of raffle tickets, fundraising or other measures, as they believe in the state law. Concluding, Ms. Reese thanked the Council for listening to her story, one of many which occur all too frequently in the community. Freddie Gramaho, through a translator, stated he wished to address the Council as he had a situation at 211 Canal where tenants are being evicted, their rents having been raised over $600 per month. The landlord had sent a notice regarding the increase in January, and in February a further notice was sent and he was confused about the notices which went out. The tenants stopped the rent increases as they wanted all the code violations attended to first. Mr. Gramaho stated he was one of the people withholding the rent increase amount and urged the Council to try to convince the landlord to comply. He stated he had in his hand a 30 -day Notice of Eviction and considered taking action to be much more important than many words. He thanked the Council for their cooperation and support. Kevin Shapiro, San Rafael resident, thanked staff for the report and requested an opportunity to read through it in order to comprehend and address it and possibly return next month with comments, as it was not possible, due to its volume, to do so this evening. Mr. Shapiro understood it would be nice if everything worked out for both sides all of the time, but although human nature provides that most people are good, voluntary systems do not necessarily work all of the time. This, he stated, was based on the fact that if voluntary systems consistently worked, laws would not be needed to require seatbelts and landlords would have been content without Proposition 13. Mr. Shapiro stated it would be advantageous to know what percentage of those who put the report together were actually renters, versus landlords or homeowners themselves, in order to ascertain what rose colored glasses the statistics were coming from, and in as much as he had gleaned without absorbing it all, there was a lot of statistical analysis. He stated that based on previous experience, SRCC Minutes (Regular) 04/02/2001 Page 10 SRCC Minutes (Regular) 04/02/2001 Page 11 statistics could be looked at in many different ways, and he did not see any factual information to back up the statistics therein. Referring to the seven steps in the staff report, Mr. Shapiro stated that with regard to the Increase in Supply, this would be necessary, as people had been entering California, specifically the Bay Area and Marin; however, it would not address short-term issues because if it takes several years to put 800 units into effect, achieving 2,000, which he considered to be an under -estimate of the actual need, would take a lot longer and people need relief now. Mr. Shapiro did not agree that some of the other steps would solve the problem and instanced Step # 4, Pursue Tenant Employment Opportunities and Training Programs, which, in his opinion, did not address the problem for other than a small number of people. He stated that even with better education, more money or a second job, this would only address the fact that tenants could afford to pay more for rent increases. The rate at which the rent increases are occurring is the cause and is what needs to be addressed. Rent increases since February for several people had gone up more than 10%, reported Mr. Shapiro. He had three rent increases in the last fifteen months, with promises of repairs, but nothing had been done in the last year at least. He felt voluntary systems would not work; real enforcement was needed. Klaus Werner stated he owned units in Central Marin and noted there were both good and bad landlords and tenants and considered the City should give the voluntary agreements a chance. He had experienced increasing costs in real estate taxes, insurance premiums, electricity and gas. He owned a six -unit complex where the bill for January went from a previous $400 to $1,400, with the provision of heating. In addition, there is gasoline, wages, water and garbage and he felt that the property owners should be allowed to raise rents up to 10% per year. David Phelps, new renter in San Rafael, stated he came here from Los Angeles where rent is somewhat better and felt the need to address some issues in the staff report, together with the fact that he had received a letter approximately one week ago concerning an increase in his rent. He pointed out that he did not have dependents to support compared to a lot of those present; he was a college graduate, had a good job and came here to establish his professional career, but had found it increasingly difficult with his present rent and the impending increase. He borrowed from his family and did not seem to be able to get ahead enough to repay this money. He stated his rent would be increased as of June 1, 2001, by $185, adding he had a roommate which would dilute the cost. His present portion of rent was $740 and compared this to Los Angeles, where he could obtain a 2 — 3 bedroom apartment for $900. Mr. Phelps reported that for the past three years, rent in his building had increased by an average of 13% and the issue now was not if rent should go up, but when, and he wondered how often a property owner could get away with this. He stated letters had been given to tenants as final, not as informational or seeking opinions regarding rents. The letters were written in such a format to discourage tenant communication and are actually notices of rising rent, with no encouragement to respond with questions. On inquiring about the issues from the Manager, her advice was to address the question to the Corporate Board, thus diluting the effectiveness or response of any tenant and giving the tenant a feeling of apathy and uselessness in addressing that need. Mr. Phelps stated his energy bill had risen from $44 for his first month to $140 last month, which did not include the 27% - 40% increase which would occur next month. He stated he had read the report, and not knowing anyone personally, saw a Council which was unwilling to address the real issues, cost of rent, rather responding with general answers. He saw options for rental standards allowing more time to alert people regarding rent increases, not a restriction on increase of rent. Addressing fair return, Mr. Phelps noted the report stated that apartment buildings were permitted to raise rents to allow property owners a fair return, but the report did not address that definition, which he felt needed to be addressed. Concluding, he stated the priority was not worrying about how much rents are going to increase if a stabilization level were put on rent for new people coming in; the real issue was keeping the current residents. Sam DiGiacomo, Co -Chair Tenants Association of Marin, stated he challenged Mr. Aramburu on his remarks this evening and recalled when a Tenants Association of Marin took tenants to him when on the Board of Supervisors, and he neither privately nor publicly supported people suffering at that time; therefore, Mr. DiGiacomo stated he was taking Mr. Aramburu's statement today with a huge grain of salt. Tonight was "de ja vu" all over again and for the City Council and general public, was a history making event for San Rafael, "but those who know not history are doomed to repeat it." Mr. DiGiacomo stated he was unsure of the correctness of this quotation or its emanation, but he did know it fitted this evening. He reported that twenty years ago, landlords suggested to the Tenants Association of Marin and to that City Council, that if they approved rent control, property values would drop, apartment owners would be unable to maintain their buildings and it would discourage more apartment building. At that time rents SRCC Minutes (Regular) 04/02/2001 Page 11 SRCC Minutes (Regular) 04/02/2001 Page 12 were approximately $600 per month. Mr. DiGiacomo reported that in January 2001, apartment owners and management companies told residents, and this present City Council, that if they approved rent control, property values would drop, apartment owners would be unable to maintain their buildings and it would discourage more apartment building; now twenty years later rents are approximately $1,200 per month and as was evidenced this evening, this was quite a conservative figure. As a result, stated Mr. DiGiacomo, over the last twenty years crime has increased to the point that an armed police force is needed in the Canal area; buildings have deteriorated, overcrowding developed because more people are forced to reside together to be in a position to afford the higher rents. On -street parking is unavailable for visitors and Mr. DiGiacomo stated that every trend he addressed this evening confirmed that the Canal Area was better off with lower rents. He requested the new property owners to keep their promises, and informed the old property owners that if they had done a good job in the past this meeting would not be taking place. If the pledges made this evening were not implemented, the same problems, or worse, would be present in five, ten or even twenty years from now. He was in a position to articulate this because he was aware of the history of rents in San Rafael and would contend that San Rafael is in a housing state of emergency. He urged the City Council not to repeat history. Mary Luis, through a translator, stated she also was a victim of 20 Marian Court, being in receipt of the same 30 -day Notice. She reported she would be unable to stay in her current apartment as it was in a very bad state of deterioration and her child was becoming ill. She would like an inspector to come to her apartment before she moved and felt her security deposit would not be returned. Being aware that the Council Members probably had children, Ms. Lewis hoped they would look into their hearts, as the task of trying to find a place for herself and her children was a nightmare. She stated that when the application is completed, they are requested to pay from between $30 - $60 just to have it processed, and it is necessary to apply to many different apartment buildings. She stated she had spent over $500 in order to find an apartment just in filling out applications. Ms. Luis stated she had been requested to prove she has three times her monthly income in order to secure an apartment. She now has to pay much more and the funds she had available to provide for her child's meals and clothing were depleted. By losing her housing and job she would lose everything, so she urged the Council, when making decisions, to look deep into their hearts, and be aware that not just she, but other mothers and fathers are suffering through this. Ms. Luis stated they wanted to be free and respected without a city full of homeless people, which is what would occur if this issue is not addressed. They did not want their children growing up in violence; rather they wanted to save to help them to go to college to have better futures. Gail Connolly, property owner in San Rafael, stated she was aware of the history of rent increases in San Rafael, and throughout the 1980s and early 1990s there were very few rent increases and these were less than 10%. She stated the City had made great strides in improving the industrial areas, with many more office buildings, industrial buildings and high tech companies moving into the area out near Home Depot. These companies were paying very high wages; their employees desired to live in San Rafael and were willing to pay to live here. She noted that with the last vacancy she had, the tenant was earning over $87,000, he wanted to ride his bicycle to work and offered to pay more than the asking rental price. From observations this evening, Ms. Connolly stated it appeared that the main problem was with a few major landowners in the Canal area, rather than many small landowners who have kept their rents less than 10% per year, and probably far less than that over the last 15 — 20 years. She reiterated the issue regarding the increase in the cost of repairs and noted her contractor, who three years ago charged $35 per hour for repairs, now commands $50, an increase of almost 50%. She noted that to put a short term band aid on this and do anything more than what is being offered would discourage more residential builders from coming in; they needed a cost return which would be effective for them. She noted the office space is renting because it is a high office space cost and the return pays for the investment, but at this point, there are only a few new residential properties being developed and she urged the City to do more to develop these properties. Scott Brew, renter in San Rafael, thanked the Council for the opportunity to address them, stating he had a high tech job and a good salary. However, his main concern was regarding the percentage increase in rent compared to salaries. He equated a 10% increase in housing per year and a salary increase of 5%, which resulted in paying twice the amount of salary increase. Referring to the background information in the staff report, Mr. Brew noted increases from 5%, 12% and up to 50%, which he felt would displace, not only people in the Canal District, but anyone. He had a good job here and liked the area but his salary did not increase at the same pace per year, which alarmed him. Sharon Jeffrey, San Rafael, stated she and her husband had been residents and owners of a business in Marin since 1971, and recently were notified that their rent would increase by 30%, equaling $570 per month or $6,840 per year. She stated they were small business owners in the community and this was an extraordinary increase and a serious impact on their lives. She stated they had a loyal employee of five years whose salary they could not raise to match her rent increase. Ms. Jeffrey stated she had a good SRCC Minutes (Regular) 04/02/2001 Page 12 SRCC Minutes (Regular) 04/02/2001 Page 13 landlord who maintained the place, was a nice person and who inferred that if this was what others were charging, she could also. She noted it was a systemic problem, which required serious legal remedies. Melissa Prandi, Prandi Property Management, stated she was a member of the newly formed San Rafael Apartment Association and the Marin Income Property Owners Association, which is spread throughout Marin County, and represents owners in San Rafael. She stated she was proud to be a property manager and proud of the buildings she manages and had met with many City officials and the City Manager. She was present at this morning's meeting with Mr. Gould as well as having attended other long meetings. Ms. Prandi stated she believed in a positive approach, with education being the key and the owners not here today would need to be educated to instruct people on how to maintain buildings and work together as a community; therefore, everyone could be effective. She reported she helped create the voluntary resolution, had spent long hours with many owners and attended a tenant meeting, and believed this voluntary effort would work, as the reality was landlords could only charge what rents would bear. Ms. Prandi confirmed Mr. Aramburu's statement referencing a newspaper article which stated rents were going down, and believed it was necessary to take care of the community and workforce. She owns a small business employing 8 people, lives in San Rafael and owns investment property in San Rafael and had been positive in approaching what will happen going forward. She volunteered to be very active in seeing that this resolution would be enforced. Ms. Prandi noted hearing earlier from tenants from Marian Court and stated she was involved in the meeting this morning referred to by the City Manager, which resulted in the tenant's 30 -day Notice being withdrawn. Ms. Prandi suggested the City look at the voluntary resolution and give it a chance as she, too, would like to see increases of less than 10% and a 60 -day Notice of rising rents given to all tenants, which is above and beyond what the state is recommending. Dorothy Vesecky, 400 Canal Street, thanked the Council for the opportunity to work on this issue and the staff for the many long hard hours and much public input. To correct Mr. Gould, Ms. Vesecky stated there were 11,000 rental units in the City of San Rafael, not 6,000 or 7,000 and noting Mr. Gould's inference that the tenants who came here initially were worried about giving up the lifestyle to which they had become accustomed, stated that when one was worried about losing a home or becoming homeless, that this was a matter of changing a lifestyle was a strange way to put it. Addressing the voluntary program, Ms. Vesecky stated she assumed those working on this issue were sincere, good people. She was in a meeting with the landlords, city staff members and fellow tenants and one of the first questions they asked, as tenants, was if the landlords who agreed to this measure would be willing to sign addendums to their rental agreements. She reported the answer was a resounding "No". She stated they were not seeking more legal remedy than that provided in the voluntary agreement, rather they would like to see a small amount of legal requirement to ensure those who sign the voluntary agreement follow through, which she felt was very important to understand. Referring to Ms. Connolly's statement that this was just a problem in the Canal, Ms. Vaseky stated that she, as well as Ms. Prandi, had spent at least three weekends, over eight hours per day, walking through apartment buildings in North San Rafael, where a problem exists both on the level of rent increases and code enforcement. She evidenced one building she observed on Saturday where three long term households were moving out as a result of rent increases effective from Sunday. Ms. Vesecky stated she did not believe the attacks on rent control in the state legislature were necessarily because rent control is bad, rather they resulted from the influence of very wealthy and powerful interests, who had decided to dispense with all benefits which tenants might enjoy in a few localities. She stated the political process was wrought with irony and hoped the voluntary agreement would work if adopted, but felt it was a rather strange idea. Elissa Giambastiani, President, San Rafael Chamber of Commerce, stated the City Council was aware, and probably most of the audience was not, that to her knowledge her organization was the first business organization in the State of California to take on the issue of affordable housing. She noted she had spoken at many public hearings, supporting the creation of more affordable housing for the workforce, seniors and disabled. She recalled spending a long evening in the Council Chambers lobbying for one second unit to be built, to enable a family to have an affordable home. Ms. Giambastiani stated the Chamber of Commerce was supporting the voluntary agreement and would do everything possible to help make it work, including meeting with any of the property owners whom the property association and renters might deem appropriate. Ms. Giambastiani stated she was so passionate concerning affordable housing that if she felt rent control would create more she would be in favor of it; however, unfortunately, rent control would not engender any more units, rather the opposite. She noted the problem was that not enough had been built in the County to accommodate those wishing to reside here. She stated the City had been the leader in trying to create more housing to deal with this critical shortage. Ms. Giambastiani stated they recently met with Assemblymember Joe Nation, who had authored a bill for tiered rates for energy usage, and informed him that they were in agreement with this concept. However, SRCC Minutes (Regular) 04/02/2001 Page 13 SRCC Minutes (Regular) 04/02/2001 Page 14 the one flaw was that to put apartment buildings, which are master metered, into this category would automatically put them at the highest rate and would have be passed on; therefore, they informed Assemblymember Nation that there should be some mechanism so that apartments that are master metered could be treated in a different way. Ms. Giambastiani noted Council's decision was a difficult one and stated her organization was ready to help to do whatever possible. The workers in the community were valued and the economy could not survive without them and we want them to able to live here. Scott Rothman, owner of 8 units in San Rafael, stated he lived in the community, his children attend school in this community, he worships in the community with a conscience and invests in the community. Rather than investing in the stock market he had invested in apartments in San Rafael and took extra time after work to renovate some of the apartments. Regarding the direction the City should take in the next 20 years, Mr. Rothman questioned if he would be needed here. The Renters Association, he noted, was filled with people like him who take time to try to make some extra money for their families, but they would be chased out faster than attracted in. He noted a speaker stated that twenty years ago rents averaged $600 per month and with a 6% annual increase, the present rent would be $1,924 monthly; therefore, rents had not escalated to a high degree. He noted energy prices had skyrocketed as had maintenance costs and stated he maintained his building, had never been cited for code violations, was an honest businessman and would appreciate the chance to do business honestly. Janette Lyons stated she was born and raised in San Rafael, had owned homes and now was on Section 8. Her rent 9 years ago was $1,065, including PG&E, and three years ago had been raised $175, last year $100, and this year $200 per month, which was overwhelming to her. She lived in Terra Linda and would probably be evicted, as previously, when she complained to mediation when her place flooded, the owner's attitude had been for her to leave. She reported going to mediation and fighting this and remained at Terra Linda Manor, noting owners do not take kindly to Section 8 people or those with children. She noted that in the 1960s when her husband died she had no problem renting in San Rafael with her four children and was speaking for the many people of low income and close to poverty. Pat Jordan, residing at Rotary Manor, stated her rent had risen 10% - 20%. She felt that if rent control were in place there would not be so many code violations or evictions and people would have much more security. Ms. Jordan stated she was a property manager in San Francisco and none of her buildings' value decreased because of rent control, noting every property had problems, with or without rent control. She inquired how rent control could be initiated and if it needed to go on a ballot. City Attorney Ragghianti stated if it was an Initiative, a petition would need to be gathered with sufficient signatures, noting the City Clerk could elaborate, but would need a certain percentage of the voters, the electors of the City to qualify it. City Clerk Leoncini confirmed this figure to be 15%. An Ordinance would first be presented to the City Council with a request to the Council for adoption; if the City Council chose not to adopt it and sufficient signatures existed, it would go on the ballot. Ms. Jordan stated she would need to move as her rent was rising so much, but felt the 60 -day Notice was insufficient time to find somewhere to live. Mayor Boro stated that a concept came up during hearings that if rents were to be raised, tenants at least had more time if they chose to look elsewhere, as 30 days was not sufficient. Ms. Jordan stated she was on four waiting lists which ranged from two to five years and did not feel 60 days made much difference. Linda Bradford stated she had been in the housing industry for approximately twenty years and having been exposed to all walks of life, had extreme compassion for those present this evening. She stated she managed a property in the Canal comprising 28 units and had expressed to her tenants that they could call her at any time if they had a problem. She understood that Canal residents were very quiet and were afraid to say anything for fear of losing their homes. She reported being a prime example of where her compassion had led, in that while endeavoring to plan for improvements to her building, she received a letter from Code Enforcement indicating they would come in to do an inspection in a week. On completion of the inspection she received a Notice of Order to Perform, allowing 60 days to take care of numerous violations. Ms. Bradford noted that Code Enforcement, having taken 60 days to write the notice after the inspection, allowed her just 60 days to perform. She stated it was impossible to find maintenance workers in today's economy and while not making excuses for non-conformance, she felt that if the City could work with the property owners in this connection, they would not be in a situation where they needed to raise the rents so high to meet huge fines. The money could be re -directed into the building to make better homes for tenants. She felt Code Enforcement was not really looking at how to fix the problems correctly, rather giving 60 days to patch or cover up to complete the checklist. SRCC Minutes (Regular) 04/02/2001 Page 14 SRCC Minutes (Regular) 04/02/2001 Page 15 Ms. Bradford stated she endeavored to schedule work around tenants and some evictions were drawn out as a result of having to complete extensive work. She stated to be fined for not getting the work done because she was going through the bureaucratic process was unfair. She noted the remarks of the speaker who had completed numerous applications with fees and suggested to the San Rafael Property Owners that they allow tenants to come in with a pre -application process, and one credit check which would alleviate the expense. She felt it was important not to rush and force something to happen without seeing the implications. Sheldon Donig stated he owned over 1,000 units in the Bay Area and had been operating property in Marin for approximately 33 years. He stated that there is exploitation in the Canal and as a result of this all property owners in Marin, who are running their properties properly and fairly, may be penalized. The market, he stated, excluding exploitation, levels itself; there have been periods where there were substantial increases in rent but it is beginning to roll back. He stated he had three units advertised in the newspaper presently, which had been running for a week, and were still showing. One of these was a two bedroom flat which he rolled back from $1,650 to $1,450. He added he had no code violations on any of his properties. Mr. Donig stated that we now have the socioeconomic change and gentrification of Marin, and in the course of this gentrification rents have risen, as have property prices. He stated that people who operate their properties legitimately and honestly and are not exploiting minorities, which is the reality of the Canal, are forced to adjust rents to the market and those paying these rents are expecting nice homes. He reported that he had four employees working non-stop on his buildings, including a contractor, but he felt the real issue was exploitation. He stated he gets paychecks to some of his Hispanic employees three days early in order to alleviate the fact that should they be a day late with rent they are charged $100 late fee. Mr. Doing stated that rent control would not solve exploitation and would not be of benefit to the community; he had been working with the voluntary group and felt they could put pressure on the landlords causing the problem before penalizing the entire community, adding he took pride in his properties without any enforcement on the City's part. Mr. Donig stated that San Rafael is presently undergoing growing pains and gentrification and the people buying in the Canal are not local residents but are buying to exploit a minority, as is done in the Tenderloin in San Francisco and all areas where there are minorities. He did not believe rent control would solve the issue, rather a voluntary control would get a group of landlords who would contact these people and address the issues. Joanne Brew, teacher, addressed the issue of residing in an apartment building whose owner does not participate in this voluntary system. Being a teacher, she stated homework in her classroom is not voluntary and adults, students and children need to work within a structured system. Living at Lootens and 51" Avenue, she stated that in the past few weeks she had experienced sewage backing into laundry facilities, tepid water to hand wash her dishes, no hot water for days in a row. The apartment manager smiled regarding the building not being up to code. He inferred the entire building is on two breakers and AT&T had tried to deal with the ancient external lines, yet the building might be a historical monument. Ms. Brew stated her rent was going up and up and if it were not for her husband she would not be able to afford to live here; she liked living in San Rafael and would like to stay here but there should be some system for all to work within. She stated she hoped the voluntary agreement would work. Myra Drotman stated she was a teacher for 20 years, is a landlady and observed that people want rent control but there are many other issues of concern. She noted no one had addressed a living wage and believed rent control would not solve the problem, as it would create a class of people who would not demand higher wages; therefore, rendering it impossible for them to ever be in a position to purchase a home. She felt that interfering with the market would not benefit tenants in the long run, rather tenants deserved to be paid more money. She had 8 units, 6 of which are $400 below market rate, one at market rate and one empty and to attack landowners who are doing a good job was unfair. She stated she was embarrassed to admit that when she bought her building she was delighted just to own a building and kept the rent status quo. At that time, 6 years ago, she was informed it would cost approximately $8,000 to paint the building. The building now needs repainting but she has not accumulated the necessary resources of $20,000, but she does not plan on raising the tenants' rents to do so. She would prefer them to be happy and stay and when an apartment is empty she raises the rent to market. Ms. Drotman evidenced a tenant moving out who had filled two parking spaces with garbage; she pays for eight cans per week and wondered if tenants were aware landlords paid for garbage and water. She supports the voluntary system, as it is what she has always used; she does not raise rent more than 10% and not more than once per year, rather she tries to wait fifteen months. She stated that rent control and the voluntary system scare her in that tenants could decide to make a lot of complaints in an effort to be heard and therefore, try to obtain rent control. She recalled a tenant last year who was late paying rent seventeen out of thirty-two times and calling requesting he bring it over. On the seventeenth occasion he SRCC Minutes (Regular) 04/02/2001 Page 15 SRCC Minutes (Regular) 04/02/2001 Page 16 informed her that he purposely did not pay the rent this time because he wanted to "rattle her cage." She gave the tenant a 30 -day Notice and he retaliated by claiming there was a dangerous situation at her apartment. She felt that rather than attacking a small group of landowners, people should be asking for higher pay. Mayor Boro stated the hearing had gone on for approximately two hours with approximately 40 speakers and there was a sense of issues from many sides of the community. Councilmember Miller reported he had written a statement of the principles he was using in judging the issue, had it reviewed by a professor at the University of San Francisco to ensure it was on target and stated: `If a person's true worth is not synonymous with net worth the market is not the only arbitrator of the common good; the role of government is to coordinate individual and institutional interests to the common good; the owners of homes for rent have a special social responsibility to the tenants that modifies the investment profit, and our previous workshops and meetings have shown that owners, tenants and the rest of society all have legitimate concerns which must be taken into account by all sides for an equitable solution." Councilmember Miller stated with that as his principles he would like the opportunity to address the seven recommendations listed, as this was a whole package which comes from the community, and he had suggested to City Manager Gould that the first paragraph of the Staff Report, under Recommendation, should read "Staff recommends that the City Council direct staff to do the following steps to address the community response to the issue of rising residential rents in San Rafael". Regarding Step 1 — Increase Supply -The word affordable should be included to read: "Identify additional housing sites and policies to assist in the creation of new and affordable housing through the General Plan Update process." Councilmember Miller noted Mr. Gould stated there would be a quota of approximately 2,000 units in the next ten years. Step 2 — Addressing Improvement of Code Enforcement Efforts, Councilmember Miller stated this part came back with a full blown plan which he felt was very strong and needed to be followed through so that it is easily called for when there are abuses. Step 3 — Increase Tenant Assistance - Councilmember Miller stated there was a balance so that tenants and property owners are organized, which was the whole premise. There was a tension which could be creative but could not be creative if there was an imbalance in the equation; therefore, he would like to see something in this area in which perhaps the tenants could come back to suggest ways in which the City could assist them in their organizing. Step 4 — Pursue Tenant Employment Opportunities -Councilmember Miller considered this to be very good, meeting some of the need and responding to the last speaker's statement in terms of endeavoring to raise the opportunities for people in job creation, etc., and having training programs, stipends and income needs to go along with it, to enable people to train while being in a position to support their family and pay their rents. Step 5 — Continue Partnerships for Affordable Housing — Councilmember Miller stated this was an area in which the City acts as a generator or coordinator. In this connection, he would like to see more action put behind the statements. Step 6 — Monitor Landlord Voluntary Efforts — Councilmember Miller stated that when he observed a lot of the unintended results of the more stringent rent control, which does work to a certain extent in some cities, in others it has a deleterious effect; it certainly helps the residents who are there. He stated he would endorse the voluntary efforts and felt there had been a good faith attempt on both sides to work together to make it strong. He felt the third party was absolutely key and needed to be supported. Step 7 - Improve Management of Units — Councilmember Miller stated there was no question about improving the management of the units. Councilmember Miller noted there was a good beginning but the track record, as evidenced by the abuses, was not good; he was convinced that the community working together would go against history and would be successful and expand. He noted it was a difficult situation and people were fearful, but he hoped the fear could be turned into hope. Councilmember Cohen stated he found this an extremely difficult issue. Some compelling arguments were heard from both sides, as well as heart wrenching testimony concerning conditions which need to be addressed. He noted comments concerning the market and believed government had an appropriate role in regulating the market. He stated people liked to talk and hear about the unfettered free market and SRCC Minutes (Regular) 04/02/2001 Page 16 SRCC Minutes (Regular) 04/02/2001 Page 17 how wonderful it is, but we also need to have a minimum wage, child labor laws, environmental regulations and land use policies, as the unfettered market delivered some pretty horrible results which no one could live with. Therefore, the market was regulated to address the worst practices within that market, as the market itself did not address its own impacts on individual human beings, as evidenced by some of the testimony this evening concerning mitigating some of these impacts. He felt that at the same time it was necessary to face limits on our ability as a City to address some of these issues, and he remained unconvinced that rent control was the answer. It would clearly have immediate short-term benefits for people whose rent was controlled; however, in the long term he was not persuaded that it would have the desired results. It would benefit those currently in rent controlled apartments, but he did not consider it would increase investment in the community and unfortunately, in many cases, rent control becomes a system which is abused by those who know how to work it, not those who need the most help. Councilmember Cohen considered there may be a middle ground and was willing to begin with the voluntary compliance to see how it goes, but the situation was that those with whom we had the problem were not present this evening; they are not the owners of the 1,100 apartment units who have already signed the voluntary compliance, and did not attend the town meetings to discuss the problem as they hoped it would go away, or avoid it or not get noticed. He wished to take up the tenants on their offer to help identify those people are who are spoiling the situation in the Canal, and urged those who wish to see voluntary compliance with them, to really try to get them to comply so that government does not have to figure out a way to do it. Councilmember Cohen noted there was a comment concerning ownership and he considered this needed to be seen in context, as there are some very powerful forces operating here in the Bay Area and in California in general. He noted testimony was heard from a speaker who had a good high tech job and was concerned about the impact on his rent, but this tenant a few years ago would have been considering buying a house. The problem is that housing prices had skyrocketed so that entry level housing is at an absurd cost; therefore, people who would have been purchasing are renting and have more money to rent. He stated there are a lot of pressures driving up rent and it is not entirely exploitation, or the cost of doing business. Councilmember Cohen stated that in looking at the staff presentation and in listening to the testimony, he was willing to see whether or not voluntary compliance would make a difference. He felt this needed to be monitored, as we could not wait a year to see what happened; there should be a report in three and six months, and continued monitoring. He stated that the comments that the market may be softening which may help address the situation and ameliorate it somewhat, may be correct, but he felt a close eye should be kept on it and some pressure needed to be applied, because we see what happens when no one is paying attention. Councilmember Cohen stated he would support independent monitoring, and it needed to be carried out in a way in which people could give information without fear of retaliation. He would like to hear more as he was concerned about reports that there were people speaking up about their rights who were being given eviction notices. He would like to evaluate possible means by which the City could protect people who report code violations from immediately being evicted and if such a pattern materializes, consider whether it is within our purview to respond. He felt there should be zero tolerance and would like to get a report, preferably at the next council meeting, on 20 Marian Court and 211 Canal, particularly, regarding the conditions addressed this evening. These conditions were intolerable and Councilmember Cohen, presuming they had been investigated by code enforcement, stated he would appreciate a report on what is happening. Responding to the landlord who stated they were trying to work on improvements and it was necessary to see who had good intentions, Councilmember Cohen stated that good intentions did not cut it. There has to be compliance with the law and if one decides to go into the business of owning and renting property, there is an obligation to comply with decent housing standards as adopted by the community. It is the City's job to enforce this and should it take a budget increase, his vote could be counted. This is an area which could not be voluntary; education is a part of it and efforts have been stepped up in this direction, but clearly from the testimony received this evening enough has not been done. Councilmember Cohen stated he would support the staff recommendation but would be watching closely; he hoped the voluntary agreement worked but would have to be convinced. Councilmember Heller thanked the translator for her wonderful work and stated she had been to all of the community meetings, each time leaving wondering what could be done at local government level to enhance the lives of those who reside in the City. She stated she agreed with Councilmember Cohen regarding not being convinced that rent control would do what we would like it to do; she had been reading and studying the issue and was not getting the message that it is a long term fix. Councilmember Heller recalled that all of us had been renters at one time, and remembered getting rent increases and SRCC Minutes (Regular) 04/02/2001 Page 17 SRCC Minutes (Regular) 04/02/2001 Page 18 wondering how to raise the money. She felt that if there are property owners who are sincerely attempting to bring their property up to code, we as a City should work with them if they are experiencing problems procuring sufficient help to carry out the work, excluding those owners who had been a problem to the City or who had not worked with their tenants and were not maintaining a safe environment. She did support the recommendations and felt that the number one priority should be to endeavor to increase the supply. While Councilmember Heller was aware the supply could not be increased sufficiently to take care of everyone in the city and county, she stated that the City should do its fair share and certainly try to increase the supply within the community as much and as soon as possible. Councilmember Heller agreed with monitoring the voluntary efforts and was grateful to those who came forward indicating they would like to work with their tenants. She noted that everyone wanted to retain good tenants. Likewise, tenants wanted to stay in good and well-maintained apartments; therefore, it works both ways. She thanked the staff for their hard work, noting it had not been easy, and would like to begin with the staff recommendations, with close monitoring. Mayor Boro thanked all of those in the audience for attending this evening and for the patience, interest and courtesy expressed to the Council and each other. He stated it was a pleasure to have officiated at the meeting and appreciated very much the approach taken by all, regardless of their opinion. He thanked the translator, staff and Mr. Aramburu. Mayor Boro stated that having known him for many years, he believed Mr. Aramburu to be a man of his word and was cognizant of the fact that in a few weeks he had been able to sign up over thirteen hundred units and he was looking to him to sign up many more over the ensuing weeks and months. Mayor Boro supported the concepts tonight and felt it was important to have third party intervention. This mediation needed to be structured in such a way so as to ensure that people felt safe when making a complaint and that they get an answer in a timely fashion. Addressing Councilmember Cohen's comment regarding the fact that those who are causing some of the problems voiced this evening were not present, Mayor Boro stated it was important to encourage the property owners to outreach to their fellow property owners. He requested that staff consider those who might not become part of this voluntary effort, and assuming it is as successful as anticipated, what approach might be taken with non -participating landlords, separate from those who are involved and living up to the agreement. He felt it was important to explore means by which to force people into the voluntary program and if not and there is tenant abuse, to find a remedy to deal with these people. Mayor Boro stated there is no intention of penalizing landlords who are complying and are dealing with their tenants as promised; however, if there are people who continue to abuse their tenants, steps need to be taken with perhaps some form of the rental standards ordinance which might apply to a specific group. He wanted to convince Mr. Aramburu and his group to get the message out to the rest of the landlords that there is a benefit to being part of this process and everyone will win. Regarding Code Enforcement and the recommendation in the staff report that the City take this over from the County, Mayor Boro felt this would provide better responsiveness to our residents and he looked forward to this coming back, as he felt there was a definite need to make this effort citywide. Mayor Boro stated that tonight's issue was first raised last fall when a few people came to the Council, who were a little fearful to come and talk about it. He stated that Councilmember Miller ascertained what their interest was which resulted in some of these issues coming to light. A meeting was held in November, attended by 100 people, mostly tenants; a subsequent meeting was held in February, attended by over 200 people, which included on this occasion, a good number of landlords. This initiated the process of bringing a group of people with a problem together to begin discussion. Concluding, Mayor Boro stated we were being offered an unprecedented program and he looked to the property owners to make it work. The City would monitor 90 day reporting, at least during the first year, and would keep the community informed going forward. Councilmember Cohen moved and Councilmember Miller seconded, to approve the Seven Step recommendations with the following amendments: Councilmember Cohen stated that with respect to the staff recommendation, he would move to direct staff to take the seven steps outlined in the staff report with the addition of Councilmember Miller's modification to the language in Step 1 to include - increase the supply of affordable housing. In addition to the implementation of the seven steps, Councilmember Cohen moved to include the following as part of the motion: Direct staff to facilitate a meeting, or meetings, between the newly formed Apartment Owners Association and the Canal Tenants Association, to enable the City, property owners and the tenants to work together to identify those who really need to be on the list and whose attention we really need to gain; SRCC Minutes (Regular) 04/02/2001 Page 18 SRCC Minutes (Regular) 04/02/2001 Page 19 A report on the voluntary compliance to be submitted 90 days from now; Report at the City Council Meeting of April 16, 2001, on the code violations discussed and the steps the City had taken to immediately address these. AYES: COUNCILMEMBERS: Cohen, Heller, Miller, and Mayor Boro NOES: COUNCILMEMBERS: None ABSENT: COUNCILMEMBERS: Phillips COUNCILMEMBER REPORTS: 16. None. There being no further business, Mayor Boro adjourned the City Council Meeting at 10:30 p.m. 1. CLOSED SESSION - CONFERENCE ROOM 201 - 10:30 PM: Conference with Legal Counsel — Existing Litigation Government Code Section 54956.9(a) Case Name: MHC Financing, et al. v. City of San Rafael U.S. District Court, Northern Dist. of CA, No. C003785 VRW Mayor Boro reported in open session that no reportable action was taken. ADJOURNMENT: 11:00 PM JEANNE M. LEONCINI, City Clerk APPROVED THIS DAY OF 12001 MAYOR OF THE CITY OF SAN RAFAEL SRCC Minutes (Regular) 04/02/2001 Page 19