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HomeMy WebLinkAboutCC Minutes 2003-07-07SRCC Minutes (Regular) 07/07/2003 Page 1 IN THE COUNCIL CHAMBER OF THE CITY OF SAN RAFAEL, MONDAY, JULY 7, 2003 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 — 9:35 PM: Mayor Boro announced Closed Session item. CLOSED SESSION — CONFERENCE ROOM 201 — 9:35 PM: Present: Albert J. Boro, Mayor Gary O. Phillips, Vice -Mayor Paul M. Cohen, Councilmember Barbara Heller Councilmember Cyr N. Miller, Councilmember Absent: None Public Employee Performance Evaluation (Government Code Section 54957) Title: City Manager (Closed Session held at end of meeting.) ORAL COMMUNICATIONS OF AN URGENCY NATURE: 8:30 PM Gold Hill / Loch Lomond: - File 100 x 2-1-82 x 13-16 Alice Vipiana stated a vote was taken at the last City Council Meeting to purchase Gold Hill as open space; she noted a tremendous amount of open space already exists in that area. Noting the property is near City Attorney Gary Ragghianti's and Mayor Boro's homes, Ms. Vipiana recalled that when property or businesses were located near one of the Councilmembers' homes, Counsel had advised them not to vote on the issue; however, all Councilmembers did vote that evening. Being mandated by ABAG to build housing, she wished the City had shown leadership by locating some of this housing on the Gold Hill property; however, this property was removed. Noting the St. Vincents/Silveira property was removed from the drawing board, Ms. Vipiana stated it would be interesting to see whether the Green Party would contest the forthcoming election or whether a deal would be struck. Ms. Vipiana stated the City Council served the citizens of San Rafael and not their future elections or personal property. She noted Council did not wait for the General Plan to come forward to remove St. Vincents/Silveira or Gold Hill and in the interest of fair play, requested some realistic numbers at the Loch Lomond Marina, preferably before the next election. Indicating that her home was the largest single investment she and her husband had, she stated they would be very affected by what happened at the Loch Lomond Marina and would do everything in her power to protect their investment. She hoped an answer would be forthcoming soon and one that would fit in with the neighborhood, as 150 houses and buildings as much as 40 -feet high was totally unacceptable. Councilmember Phillips moved and Councilmember Milller seconded, to approve the Consent Calendar as follows: ITEM 2. Approval of Minutes of Regular Meetings of Monday, June 2 and June 16, 2003 (CC) 3. Issuance of Report Re Crematorium (CD) — File 13-1 x 10-3 x 10-2 x 9-3-16 4. Summary of Legislation Affecting San Rafael (CM) —File 116 x 9-1 5. Resolution Urging the California Legislature to Use a Balanced Approach in Adopting the State Budget (CM) —File 116 x 9-1 RECOMMENDED ACTION Minutes approved as submitted. Accepted report. Approved staff recommendation: HR 1394 Intermodal Transportation Facilities Program. Representative Johnson — SUPPORT RESOLUTION NO. 11346 — RESOLUTION URGING THE CALIFORNIA LEGISLATURE TO USE A BALANCED APPROACH IN ADOPTING THE STATE BUDGET SRCC Minutes (Regular) 07/07/2003 Page 1 SRCC Minutes (Regular) 07/07/2003 Page 2 6. Monthly Investment Report for Month Ending Accepted Monthly Investment Report May 2003 (MS) — File 8-18 x 8-9 for month ending May, 2003, as presented. 7. Resolution Authorizing the Signing of an RESOLUTION NO. 11347 — Amendment to the Agreement with Claims RESOLUTION AUTHORIZING THE Management, Inc. for Workers Compensation SIGNING OF AN AMENDMENT TO Claims Administration Services (MS) — THE AGREEMENT WITH CLAIMS File 7-1-31 x 9-6-3 MANAGEMENT, INC. FOR WORKERS' COMPENSATION CLAIMS ADMINISTRATION SERVICES (from July 1, 2003 to June 30, 2004) 8. Resolution Setting the Special Assessment RESOLUTION NO. 11348 — District (Mello -Roos) Tax Rate for Year 2003-04 RESOLUTION SETTING THE on All Taxable Property Within the Community SPECIAL ASSESSMENT DISTRICT Facilities District No. 1992-1 (Loch Lomond #10) TAX FOR LOCH LOMOND #10 FOR (MS) — File 6-50 x 9-12-1 FISCAL YEAR 2003-04 9. Resolutions: a) Appropriating Unappropriated a) RESOLUTION NO. 11349 — Revenues for 2002/03; and b) Approving 2003/04 RESOLUTION Appropriations Limit (MS) — File 8-5 APPROPRIATING UNAPPROPRIATED REVENUES FOR 2002-2003 b) RESOLUTION NO. 11350 — RESOLUTION APPROVING FISCAL YEAR 2003/2004 APPROPRIATIONS LIMIT 10. Resolution Authorizing the Establishment of the RESOLUTION NO. 11351 — Separation Incentive Program through the PARS RESOLUTION AUTHORIZING THE Trust Administrator and Appointing the City ESTABLISHMENT OF THE Manager the Plan Administrator (MS) — SEPARATION INCENTIVE PROGRAM File 7-1-36 X 7-4 THROUGH THE PARS TRUST ADMINISTRATOR AND APPOINTING THE CITY MANAGER THE PLAN ADMINISTRATOR 11. Resolution Amending Resolution No. 10855 RESOLUTION NO. 11352— Pertaining to the Compensation for Part-time, RESOLUTION AMENDING Temporary, Intermittent and Seasonal Workers RESOLUTION NO. 10855 WHICH (MS) — File 7-8-6 PERTAINS TO COMPENSATION FOR PART-TIME, TEMPORARY, INTERMITTENT AND SEASONAL WORKERS 12. Resolution Approving the Issuance of California RESOLUTION NO. 11353 - Statewide Communities Development Authority RESOLUTION APPROVING THE Kaiser Permanente Variable Rate Revenue ISSUANCE OF CALIFORNIA Bonds Series 2003 in an Aggregate Principal STATEWIDE COMMUNITIES Amount Not to Exceed $240,000,000 for the DEVELOPMENT AUTHORITY KAISER Purpose of Refinancing 2001 Series A Bonds for PERMANENTE VARIABLE RATE the Acquisition, Improvement and Equipping of REVENUE BONDS SERIES 2003 IN San Rafael Medical Center and Certain Other AN AGGREGATE PRINCIPAL Matters Related Thereto (MS) — File 8-9 x 9-3-20 AMOUNT NOT TO EXCEED $240,000,000 13. Resolution of the City Council of the City of San RESOLUTION NO. 11354— Rafael, County of Marin, State of California, RESOLUTION OF THE CITY COUNCIL Supporting the Concept and Efforts of the OF THE CITY OF SAN RAFAEL, California Highway Patrol Needed to Conduct a COUNTY OF MARIN, STATE OF Driving Under the Influence (DUI) Traffic Safety CALIFORNIA, SUPPORTING THE Program (PD) — File 9-3-30 CONCEPT AND EFFORTS OF THE CALIFORNIA HIGHWAY PATROL NEEDED TO CONDUCT A DRIVING UNDER THE INFLUENCE (DUI) TRAFFIC SAFETY PROGRAM SRCC Minutes (Regular) 07/07/2003 Page 2 SRCC Minutes (Regular) 07/07/2003 Page 3 14. Resolution Authorizing Memorandum of RESOLUTION NO. 11355 — Understanding Agreement with County of Marin RESOLUTION AUTHORIZING Operational Area to Provide Emergency MEMORANDUM OF Management Services (PW) — UNDERSTANDING AGREEMENT File 4-13-99 x 9-3-31 WITH COUNTY OF MARIN OPERATIONAL AREA TO PROVIDE EMERGENCY MANAGEMENT SERVICES (Commencing July 1, 2003 through June 30, 2006, in amount of $18,060) 15. Baypoint Lagoons Landscaping and Lighting a) RESOLUTION NO. 11356 — District: (PW) — File 6-48 RESOLUTION DIRECTING a) Resolution Directing Filing of Engineer's FILING OF ENGINEER'S Annual Report; ANNUAL REPORT, BAYPOINT b) Engineer's Annual Report 2003-2004: LAGOONS LANDSCAPING This is to be filed; AND LIGHTING DISTRICT c) Resolution Approving Engineer's Annual (Pursuant to the Landscaping Report; and and Lighting Act of 1972) d) Resolution of Intention to Order Improvements (and Setting Public a) RESOLUTION NO. 11357 — Hearing for Meeting of 8/4/03) RESOLUTION APPROVING ENGINEER'S ANNUAL REPORT, BAYPOINT LAGOONS LANDSCAPING AND LIGHTING DISTRICT (Pursuant to the Landscaping and Lighting Act of 1972) c) RESOLUTION NO. 11358 — RESOLUTION OF INTENTION TO ORDER IMPROVEMENTS, BAYPOINT LAGOONS LANDSCAPING AND LIGHTING DISTRICT (Pursuant to the Landscaping and Lighting Act of 1972) AND SETTING PUBLIC HEARING FOR MEETING OF AUGUST 4, 2003 AYES: COUNCILMEMBERS: Cohen, Heller, Miller, Phillips and Mayor Boro NOES: COUNCILMEMBERS: None ABSENT: COUNCILMEMBERS: None ABSTAINING: COUNCILMEMBERS: Cohen, (from minutes of 6/16/03 only, due to absence from meeting.) PUBLIC HEARINGS: 16. Public Hearing — CONSIDERATION OF ADOPTION OF ORDINANCE EXTENDING URGENCY ORDINANCE NO. 1803 — "AN INTERIM URGENCY ORDINANCE OF THE CITY OF SAN RAFAEL ESTABLISHING A MORATORIUM TO TEMPORARILY PROHIBIT GRANTING APPROVALS TO, OR ISSUANCE OF PERMITS FOR, CREMATORIA PURSUANT TO CALIFORNIA GOVERNMENT CODE SECTION 65858" (CA) — FILE 13-1 x 10-3 x 10-2 x 9-3-16 Mayor Boro declared the public hearing opened. City Attorney Gary Ragghianti reported that on June 2, 2003, Council voted to impose an interim urgency moratorium in connection with crematory uses within the City of San Rafael, which was and still is Ordinance No. 1803. He stated that the ordinance before Council this evening proposed to extend the duration of that interim and temporary moratorium for ten months and fifteen days pursuant to the pertinent provisions of Government Code Section 65858. Mr. Ragghianti indicated he would dispense with the factual circumstances that gave rise to Ordinance No. 1803 since all of the members of the City Council were intimately familiar with it and they are contained and set forth at length in this ordinance as they were in 1803. In conclusion, Mr. Ragghianti stated that the same threat to the public health, safety or welfare continues to exist and would continue to exist until such time as the Community Development SRCC Minutes (Regular) 07/07/2003 Page 3 SRCC Minutes (Regular) 07/07/2003 Page 4 Department brought proposed amendments to the zoning ordinance to the Council for its consideration, which as yet had not been done. He noted that a report was submitted by the Community Development Department, as required by the 65858 statute, identifying the steps taken since adoption of Ordinance No. 1803. Mr. Ragghianti stated it was the recommendation of the City Attorney's Office that this Council consider the proposed ordinance. It required, as did 1803, a four-fifths vote, and he indicated that failure to pass the ordinance would allow Ordinance No. 1803 to expire on July 17, 2003. Elissa Giambastiani, President, San Rafael Chamber of Commerce, wished to note that she was speaking personally this evening and the Chamber of Commerce Board had not taken a position on this issue. Indicating she had two concerns about the ordinance, Ms. Giambastiani explained that one pertained to the reference several times that the crematorium is a threat to public health and safety; however, from what she had read, there was no proof this was actually true. She noted the Bay Area Air Quality Management District indicated it was an acceptable discharge. Should it be a threat to public health, Ms. Giambastiani wondered about those living near the other crematorium and believed an assumption was being made which had not been proven. Secondly, quoting from the ordinance "should not permit location of such uses in or near residential and commercial districts of the City," Ms. Giambastiani stated that including commercial districts of the City was essentially saying there was no place in San Rafael where it would be legal to build a crematorium. Concluding, Ms. Giambastiani stated it was not as if Keaton's Mortuary was trying to create a market, rather they were responding to the community's request for the service. Brad Sears congratulated the Planning Department for establishing a template for municipalities to reject inappropriate development. He favored extending the moratorium. Stephen Tracy, commended the City Council for the action taken at the June 2, 2003 meeting and strongly urged them to extend the interim urgency ordinance. There being no further comment from the audience, Mayor Boro closed the public hearing. Mayor Boro invited City Attorney Gary Ragghianti to comment on Ms. Giambastiani's remarks concerning public health, safety or welfare. Indicating Ms. Giambastiani's remarks were good ones, Mr. Ragghianti stated that section 3 of the ordinance was an extensive recitation of the issues that arose by virtue of the outpouring of expressions of opposition received by the City as to the sufficiency of the current zoning regulations to address public health, safety and welfare concerns, which include the appropriate location and any permitting restrictions on crematoria uses. He noted that nothing in the ordinance takes the position that crematoria are a public health hazard. While the testimony received suggested that, Mr. Ragghianti stated the purpose of the ordinance, however, was to prevent the approval of uses that may be inconsistent and prejudicial with a contemplated change in the zoning restrictions that the City may undertake to deal with in the foreseeable future. For that reason he stated the original ordinance was good for only 45 days, as indicated by the statute, and the purpose of the matter before Council this evening was to extend it up to a maximum of ten months and fifteen days. Mr. Ragghianti stated that one, and only one, additional extension of this ordinance is permitted under the statute, and he understood that before this expires, should it be adopted by Council, he suggested revisions to the zoning ordinance that address the perceived threat would probably be brought back to the Planning Commission and City Council. Councilmember Cohen stated he did not believe any of the conditions that led to the adoption of the original ordinance had changed. He noted that earlier this evening Council accepted a report from staff on the progress made to date on considering the issues raised and he believed it appropriate to extend the time to allow that consideration to go forward in a due and measured manner. The title of the ordinance was read: "AN URGENCY ORDINANCE OF THE CITY OF SAN RAFAEL EXTENDING INTERIM URGENCY ORDINANCE NUMBER 1803 PROHIBITING GRANTING APPROVALS TO, OR ISSUANCE OF PERMITS FOR, CREMATORIUM USES PURSUANT TO CALIFORNIA GOVERNMENT CODE §65858" SRCC Minutes (Regular) 07/07/2003 Page 4 SRCC Minutes (Regular) 07/07/2003 Page 5 Councilmember Cohen moved and Councilmember Phillips seconded, to dispense with the reading of the ordinance in its entirety, and refer to it by title only, and adopt Urgency Ordinance No. 1805 by the following vote, to wit: AYES: COUNCILMEMBERS: Cohen, Heller, Miller, Phillips and Mayor Boro NOES: COUNCILMEMBERS: None ABSENT: COUNCILMEMBERS: None 17. Public Hearing — CONSIDERATION OF AN ORDINANCE SETTING THE PARAMEDIC TAX RATE, COMMENCING WITH FISCAL YEAR 2003-2004, AT THE RATES ALLOWED IN ORDINANCE NO. 1747 FOR RESIDENTIAL AND NON-RESIDENTIAL PROPERTIES IN THE CITY OF SAN RAFAEL; AND FURTHER CONFIRMING THE PARAMEDIC TAX RATES, COMMENCING WITH FISCAL YEAR 2003-2004 FOR RESIDENTIAL AND NOW RESIDENTIAL PROPERTIES IN THE CITY OF SAN RAFAEL, THE MARINWOOD COMMUNITY SERVICES DISTRICT, COUNTY SERVICE AREA NO. 13, AND COUNTY SERVICE AREA NO. 19 (MS) — FILE 9-12-1 x 9-3-31 Mayor Boro declared the public hearing opened Assistant City Manager Ken Nordhoff explained this was the annual hearing to set the tax rates for the Paramedic program, which commenced in 1979 and had been a voter approved program since then. He stated it not only includes the City, rather three other districts: County Service Areas 13, 19 and Marinwood, the areas in which San Rafael is responsible for providing Paramedic service. Mr. Nordhoff stated that staff has worked cooperatively with representatives from those jurisdictions in the past to ensure that as the caps for tax rates needed to be approved they were done in unison. He noted that Measure P in San Rafael passed with overwhelming support this past fall, as did like measures referred to in the staff report. Having evaluated the budget for the EMS (Emergency Medical Services) and Paramedic program for the coming year and working closely with the Fire Chief, Mr. Nordhoff stated staff suggests a tax rate of $54.00 be approved for the coming year, which is a $2.00 increase from the current rate and remains well below the $61.00 cap. For the non-residential, the commercial and industrial properties billed on a square -footage basis, Mr. Nordhoff stated staff recommends the rate be increased from $0.0625 to $0.0675 per square foot, again remaining well below the $0.08 per square foot cap. Mr. Nordhoff indicated that several worksheets were included with the staff report identifying the details of the budget, noting he and the Fire Chief Marcucci met with County representatives and representatives of the various districts recently to discuss the proposed rates, which they support. He noted there was also a fair amount of third -party billing or ambulance transportation money that helps support this program, which is projected to be $1,410,000 in the coming year. To the extent this can be collected (Chief Marcucci is very actively managing the program), it helps minimize the level to which the tax rates must be increased. Mayor Boro thanked Fire Chief Marcucci for his work with the other agencies and Mr. Nordhoff in bringing this forward. Regarding the use of prior year reserves, Councilmember Cohen inquired whether the $245,000 represented the entire amount of prior reserves. Mr. Nordhoff indicated it represented approximately half the balance in place for June, 2003; therefore, an approximate 7% or 8% reserve is being left in the fund, which is not too dissimilar to the General Fund. Should the City wish to hold to that as a reserve level, Councilmember Cohen inquired whether it was likely a larger jump would be seen next year, as there would not be reserve funds to pump in. Responding affirmatively, Mr. Nordhoff explained this was the first of the four years where Council had the opportunity to set tax rates within the limits provided by the voters, and staff was exploring ways to smooth this out over the four-year cycle, looking ahead and anticipating what costs of service would look like for 2004-2005. Councilmember Cohen inquired whether some of the reserve would be used next year, indicating he did not have a problem with the concept of using some to offset the increase. Mr. Nordhoff stated the intent was to hopefully keep the rates, if necessary, moving at approximately $2.00 per year, and somewhere in the region of a half -cent on the non-residential SRCC Minutes (Regular) 07/07/2003 Page 5 SRCC Minutes (Regular) 07/07/2003 Page 6 rates. He indicated staff was attempting to smooth this with the use of reserves. There being no comment from the audience, Mayor Boro closed the public hearing. The title of the ordinance was read: "AN ORDINANCE OF THE CITY OF SAN RAFAEL SETTING THE PARAMEDIC TAX RATE, COMMENCING WITH FISCAL YEAR 2003-2004, AT THE RATES ALLOWED IN ORDINANCE NO. 1793 FOR RESIDENTIAL AND NON-RESIDENTIAL PROPERTIES IN THE CITY OF SAN RAFAEL; AND FURTHER CONFIRMING THE PARAMEDIC TAX RATES, COMMENCING WITH FISCAL YEAR 2003-2004 FOR RESIDENTIAL AND NON- RESIDENTIAL PROPERTIES IN THE CITY OF SAN RAFAEL, THE MARINWOOD COMMUNITY SERVICES DISTRICT, COUNTY SERVICE AREA NO. 13, AND COUNTY SERVICE AREA NO. 19. ($54.00 FOR RESIDENTIAL AND $.0675 PER SQUARE FOOT FOR NON-RESIDENTIAL PROPERTY)" Councilmember Phillips moved and Councilmember Heller seconded, to dispense with the reading of the ordinance in its entirety and refer to it by title only, and pass Charter Ordinance No. 1806 to print by the following vote, to wit: AYES: COUNCILMEMBERS: Cohen, Heller, Miller, Phillips and Mayor Boro NOES: COUNCILMEMBERS: None ABSENT: COUNCILMEMBERS: None 18. Public Hearing — CONSIDERATION OF AN ORDINANCE ESTABLISHING A LEGALIZATION INCENTIVE PROGRAM FOR WAIVER OF PAYMENT OF INVESTIGATORY FEES FOR ISSUANCE OF BUILDING PERMITS TO LEGALIZE CONSTRUCTION OF SECOND DWELLING UNITS THAT HAVE BEEN CONSTRUCTED WITHOUT REQUIRED BUILDING PERMITS (CD) — FILE 10-3 x 10-5 x 10-7 x 13-16 x 5-1 Mayor Boro declared the public hearing opened. Community Development Director Bob Brown stated that when the new second unit regulations were adopted in May, a number of representatives from homeowners' associations reported on the existence of many illegal second units in their neighborhoods; they felt the impacts from these units and requested the City Council find some way in which those units could count towards the state mandated housing needs numbers. Having rechecked with the State Department of Housing and Community Development, Mr. Brown reported they reiterated that only legal, permitted housing units could count towards those state numbers. Mr. Brown reported that staff considered ways of further encouraging legalization of such units under the new regulations, and they suggest that Council consider a time limited program to encourage legalization of illegally constructed second units under these new regulations. He suggested temporarily waiving (for nine months) the building permit surcharge, the investigatory fee, prescribed under the Uniform Building Code for illegal construction. The normal Building Permit fee would continue to be charged; however, eliminating the penalty fee would save a homeowner probably in the range of approximately $500. Mr. Brown indicated there would also be a potential savings of approximately $2,000 to a homeowner since they would not require a Use Permit in most cases; therefore, these two programs could provide some financial incentive. Mr. Brown stated that the benefits of a second unit legalization incentive program are two -fold He explained that firstly, the City could count any legalized units towards housing needs numbers, which would be significant; and secondly, any legalization would obviously result in safer units to their occupants. Mr. Brown indicated that staff suggested adopting this time-limited program for a period of nine months, reporting back at the conclusion the success or otherwise of encouraging legalization, and determining at that time whether it made sense to move forward and continue the program or return to the typical requirements for illegal construction. Councilmember Miller requested clarification on the $2,000 figure. Mr. Brown explained that because of the new law, a discretionary Use Permit, which used to go to the Planning Commission, would not be required; therefore, new and legalized units would automatically be saving $2,000. Councilmember Heller inquired as to approximately how many people presently attempted to legalize their units. Mr. Brown indicated that on average, two to three inquiries per week were received. He stated that an article would be included in the City Newsletter advertising the new regulations and encouraging people to legalize. Should the City Council approve this program, SRCC Minutes (Regular) 07/07/2003 Page 6 SRCC Minutes (Regular) 07/07/2003 Page 7 it would also be advertised in the City Newsletter Regarding Mr. Brown's comment that the units would be safer, Councilmember Phillips inquired how they would be safer. Mr. Brown stated that by merely getting building inspections to ensure they meet the Uniform Housing Code, which is the bare minimum standards for livability, the electrical circuitry, plumbing, headroom, ventilation, heating systems, etc., would be checked. He stated that typically, when units are "bootlegged" this is often done by homeowners with very limited code knowledge; therefore, it presents the opportunity to improve living standards that could be substandard. Councilmember Phillips noted that marginal units, i.e., not too bad, would probably be those that would come forward for legalization, and Mr. Brown concurred. He indicated that those not coming forward could be on the other side, i.e., less safe. Mr. Brown stated that usually the greatest constraint to legalization has been parking requirements and those have changed significantly with the new ordinance. He explained it used to be that single-family home parking had to be upgraded to current standards and in addition, provide parking for the second unit. With the new regulations, the single-family home is not required to be brought up to code, rather provide one space for the second unit. Mr. Brown stated the City is doing as much as possible to facilitate people legalizing and meeting parking requirements. Councilmember Phillips inquired whether it was the City's intent to more actively enforce code violations on those who had not requested legalization after the conclusion of the moratorium period. Mr. Brown stated he could not imagine being more aggressive in code enforcement than heretofore, explaining that approximately half of the administrative hearings are for illegal units. As directed by Council, staff follows up on rental advertisements anonymously, even going to open houses where it has been learned realtors are advertising illegal units. Mr. Brown stated that after the legalization period, staff would inquire further of homeowners associations whether they were aware of illegal units, and should they supply evidence, staff would be happy to pursue these. Councilmember Phillips inquired what would motivate owners to request to be legalized. Mr. Brown stated that resale would be a primary factor, as the Disclosure Laws probably had a lot to do with legalization. Should homeowners find there is an avenue for them to legalize, meet the regulations and not pay a fortune, he believed they would find it to be in their best interest to do so before preparing to sell. In the absence of a strong plus unless an owner was anticipating selling the house, Councilmember Phillips inquired whether it would behoove the City to insert a stiffer penalty, subsequent to the moratorium period, as a further encouragement. Mr. Brown stated this was possible, adding that Novato had a triple fee penalty, whereas the City just used the Building Code's double penalty. Councilmember Phillips stated he favored doing this as a further incentive for people to come in even if they are not going to sell their home. Mr. Brown stated that should this program be pursued, as applicants request legalization, staff would be inquiring as to the basis for their decision, to gain a better understanding of the thinking of homeowners. Councilmember Cohen ascertained from Mr. Brown that typically a permit costs $500; therefore, in waiving the double cost, the applicant would save $500 in addition to the $2,000. Councilmember Cohen inquired whether staff anticipated waiving or decreasing enforcement efforts during this period. Mr. Brown responded in the negative, explaining this, in fact, affords another avenue for code enforcement when they find a violator to get them into the planning process. He indicated typically, the problem has been that staff would have them get into the planning process and then they realize they could not legalize, either financially or more often, through City regulations. By familiarizing code enforcement, planners, staff and building inspectors with these new regulations, the hope was that all could speak with one voice and encourage legalization. Councilmember Cohen inquired whether there had been any consideration of a two-tiered program, indicating he had some concerns regarding granting a waiver even though the rules were disobeyed. He indicated he was more sympathetic to the person who voluntarily sought to legalize his unit as opposed to a violator who applied only because of having been caught by Code Enforcement, and wondered whether there was a basis for taking different views of these two situations. Mr. Brown believed the City would be better off trying to legalize as many units as possible, noting past policy had been not to have different regulations. He indicated that while some communities had excessively simplified regulations for legalization, as opposed to more SRCC Minutes (Regular) 07/07/2003 Page 7 SRCC Minutes (Regular) 07/07/2003 Page 8 stringent regulations for new applications, San Rafael had never done this. He was unsure of adopting a two-tiered cost policy, believing staff's recommendation was to adopt a time limit period to ascertain the effectiveness or not, with the option of abandoning the program and returning to typical fees. Elissa Giambastiani, President, San Rafael Chamber of Commerce, stated they were very supportive of this proposal. She indicated they were concerned about the number of second units that are going into the General Plan, noting 34 units per year as opposed to 4 now was a pretty high figure, especially in light of the fact that the cost of even a small unit is over $100,000. Ms. Giambastiani stated anything the City could do to legalize units would be a good thing. She suggested the program be promoted as much as possible in the next nine months and the Chamber of Commerce would do likewise through their newspaper. Mary Ellen Irwin, Federation of Neighborhoods and San Rafael Fire Commissioner, expressed appreciation for most of the comments this evening. She reported having had a number of discussions over the past two weeks since receiving notice the item would be agendized this evening, and originally intended to suggest it be delayed pending further discussion with the Federation; however, she believed most of the issues had been covered. Ms. Irwin stated their worry had been that the funding received as a result of these legalizations be utilized for having inspectors check new units, noting $500 would not achieve very much; however, their concern pertained to the units not publicly known that are in very bad shape or just thrown together. She stated that anything that could be done to stop this in all San Rafael neighborhoods was a good idea. Ms. Irwin stated the Federation people had not had much time to discuss this, especially in its present form, and it would be good if it could be delayed a further two weeks to enable it to be discussed at the Federation's next meeting. She reported that the original suggestion came up in a brainstorming session; they did not mean it to be the final version. She indicated people were trying to find ways to help provide affordable homes, and whether delayed or not, she commended staff on the improvements made since the first discussion. Dave Fahrner, President of the Marin Association of Realtors, commended staff on their excellent work on the ordinance, which had the Association's full support. Mr. Fahrner read the following "On behalf of the 1,350 members of the Marin Association of Realtors, I would like to thank you for the opportunity to provide our perspective about the proposed legalization incentive program for second units in San Rafael. We commend San Rafael for taking steps to insure its inventory of affordable housing and meet its State housing requirements. This includes the recent adoption of new zoning regulations that make it easier to add a second dwelling unit to properties with a single-family home in consideration today of the ordinance that will encourage legalization of second units that were built without the necessary building permits. The Marin Association of Realtors is a longtime advocate of affordable housing in the community. We have endorsed local affordable housing projects and initiatives in the past and we look forward to supporting and promoting them in the future. As you may recall, in April, we called on county, city and town governments across Marin to implement building permit amnesty programs for all homeowners and property owners by the end of 2004. Amnesty programs for second units have the potential to add needed housing to a tight housing market, make properties more marketable and provide peace of mind to prospective home buyers. Obviously, we are pleased that the San Rafael City Council is considering this proposed legalization incentive program for second units and hope you pass it into law. When it is approved, the Marin Association of Realtors will be glad to work with you and your staff to promote the program to our members via our monthly newsletter and e-mail alerts, at our membership meetings and at our online building permit information center, which is located at www.buildingpermitsmarin.com We also hope the passage of this ordinance will be the first step towards implementing a building permit amnesty program for all homeowners. Why? Because what makes sense for a small group of second unit owners also makes sense for all other homeowners in San Rafael who may not have obtained necessary building permits for their consideration or home improvement projects. If these homeowners can prove that their work is up to code or take steps to ensure that it is up to code, then they are deserving of a clean slate as the owner of second units. Our reasons for supporting building permit amnesty programs and helping to educate the public about the building permit regulations in their communities is simple. We want to work with you SRCC Minutes (Regular) 07/07/2003 Page 8 SRCC Minutes (Regular) 07/07/2003 Page 9 and other local governments to help improve the quality of life in Marin County. We look forward to the opportunity to work with you in the days ahead." There being no further comment from the audience, Mayor Boro closed the public hearing Mayor Boro stated the Council received a letter from Dave Bernardi, General Manager, Marin Builders Association, addressing the issue of some level of fee. Mr. Brown stated that as indicated by Mr. Bernardi, staff also believes ultimately it is important to maintain a penalty fee for illegal construction. Staff's thinking is that the City's need for counting units is so paramount that it is worthwhile waiving it for a limited time frame. Mayor Boro stated he believed tonight's action made sense. The motivation is to legalize these units to make them safe and at the same time, allow the City to take credit in its housing account to the State. Mayor Boro indicated he did not see this personally as a first step towards waiving all fees as he believed it wrong to reward bad behavior and it was self-serving. Further, he noted that when a permit is issued and improvements are made, the taxes on that property change. An increase in assessed valuation would bring forward an increase in taxes to the cities, counties and school districts. Mayor Boro stated that to infer this should now be waived to make it right was not the correct type of behavior and was not serving government or the community as a whole in the correct manner. While he supported this ordinance, he did not see it as a first step towards considering any other reduction or amnesty in fees. City Manager Rod Gould stated staff concurred and was holding the response to the Marin Association of Realtors' letter until Council considered the issue with regard to second units. Should Council act this evening, staff was prepared to bring forth a draft response to the proposal for Council consideration. Noting the Coalition of Residents and Federation of Neighborhoods meet with Mr. Gould and staff once per month, Councilmember Heller inquired whether this had been discussed with them. Mr. Gould stated it was not discussed at last Wednesday's meeting because the Federation cancelled its attendance and only the Coalition was present. Mr. Brown stated he had mentioned this to Steve Patterson who understood the basis for it. He noted that the ordinance was being introduced this evening and would come up for final adoption in two weeks, thereby affording time should the Federation wish to comment. Councilmember Miller considered the act of not gaining a permit one that should never be rewarded. He noted property values would change; therefore, the owner was cheating on taxes and gaining income and he saw this as the wrong means to attain the desired end. He did not believe it just or fair to those who gain their permits in a timely manner, and could not in conscience vote for the ordinance. Councilmember Cohen stated he understood Councilmember's Miller point and the point raised in the letter from the Marin Builders Association, and he extended this to the notion of just a blanket permitting amnesty. He did not believe the inference should be "get a building permit when we catch you" and considered there to be a good public policy reason to encourage legalization of units. Councilmember Cohen noted that the neighborhoods are feeling the impact of these illegal units now, yet they cannot be counted towards the housing needs, resulting in more units being squeezed into those neighborhoods already burdened by the illegal units. By legalizing units, at least the City would get credit for that existing burden, and this should be done. He noted the real reason for perhaps not seeing a rush to legalize regardless of the amnesty program was that in applying for a building permit, the unit has to be reported, which entailed dealing with the possibility of reassessment and the potential of reporting the income on the unit. Councilmember Cohen believed there were a lot of underground economy issues working that the City did not have the ability to impact. For the reasons stated, Councilmember Cohen indicated he was supportive of giving it a try to see how it works. He believed that every unit legalized at least gave the community credit for the burden of having that unit in the neighborhood, its adding to congestion on City streets, together with all of the other impacts noted over the years. Councilmember Cohen noted that the Builders Association suggested a nominal fee, the high end of which, $500, was about what was being charged presently, and was hardly nominal. He suggested there was a difference between someone who heard about this program through the good work of the Marin Association of Realtors or the Chamber, recognized the benefit and SRCC Minutes (Regular) 07/07/2003 Page 9 SRCC Minutes (Regular) 07/07/2003 Page 10 voluntarily sought amnesty, and someone forced to apply through code enforcement. Councilmember Cohen suggested perhaps adopting something in the region of a $100 fee as a result of being written up by code enforcement. He favored encouraging people to come forward and not waive the fee because they were forced to apply. Noting there were nine months to try the program out, Mayor Boro stated it would appear that most of the people do not apply for legalization until they sell their homes. He believed there should be an incentive to do this within the nine-month period and he favored Councilmember Phillips' approach of having an opportunity to have the fees waived in the first instance. Mayor Boro favored making the program well known, offering an incentive for people to apply, receive credit for the unit for the general community while at the same time, ensuring the unit is safe and livable; thereafter, impose a substantial penalty. Concurring with Mayor Boro, Councilmember Phillips stated he was sympathetic to Councilmember Cohen's point; however, with a sufficient penalty at the end, perhaps this would accomplish the desired result. He believed Councilmember Miller also made good points; however, to some degree the end justified the means in this case and with a sufficient penalty at the end, he believed a number of different requirements would be satisfied, i.e., the units would be counted and brought up to safety code. He would be satisfied with some substantial penalty should people not come forth pursuant to sufficient warning and acknowledgement of the program. Community Development Director Bob Brown suggested staff return in six months to evaluate whether or not to change the fee structure at the conclusion of the program. Mayor Boro clarified there would be nine months to legalize the unit. People should be apprised up front that should they choose not to take advantage of this and delay in anticipation of the City changing its mind, the penalty would be substantially more than that currently. Mayor Boro believed that at least two Councilmembers were advocating for a higher fee after the nine-month amnesty period. Should Council choose to take this action, Mayor Boro inquired of City Attorney Ragghianti whether it should be incorporated in this evening's action. Mr. Ragghianti stated there was no legal reason for not doing so, indicating he personally would do it. Mr. Brown inquired whether Council would choose to impose a higher penalty on all illegal construction, or continue the double penalty for all illegal construction except the creation of illegal second units. Mayor Boro stated he did not believe the sense of this Council was to forgive fees on all other construction; therefore, he would leave the existing in place, with the exception of the second units. Mr. Brown clarified that it was Mayor Boro's suggestion to modify the ordinance at this time to impose a double investigatory fee in addition to the base building permit fee. Mayor Boro suggested to Councilmember Miller that this would perhaps somewhat justify the long term goal. Councilmember Miller reiterated that the end did not justify the means. Councilmember Heller agreed with Mayor Boro and Councilmembers Cohen and Phillips. She wished to ensure that the neighborhood associations were kept involved and that the issue could be discussed at next month's meeting. She believed the program should be proceeded with and considered it important to use this chance to achieve legalization of units already impacting neighborhoods. City Manager Gould inquired whether Councilmember Heller supported the ordinance with the suggested amendment of going to a triple fee at the end of the nine-month period. Should it be ascertained that having this program increased the amount of people coming forward to legalize their units, Councilmember Cohen suggested room be left to expand or extend the program as there was no way all of the illegal units would come forward in the nine month period. He noted this comes up when resale inspections are carried out. He stated the message being sent was that the program was time limited to nine months, at the end of which triple fees would be imposed. In the event of the program being extended, he noted his concern regarding the message of backing off being sent. Councilmember Cohen stated he would support this as opposed to doing nothing. As his suggestion of a nominal fee for those forced in by code enforcement was not favored this evening, he indicated his preference would be to adopt the recommendations as presented by staff and evaluate the program as to whether or not fees should be tripled later, rather than SRCC Minutes (Regular) 07/07/2003 Page 10 SRCC Minutes (Regular) 07/07/2003 Page 11 changing it on the fly this evening Firstly, Mayor Boro believed it made sense to make this a one-year period. Secondly, Mayor Boro stated that to date there were a lot of reasons why people had not come in, the primary reason being lack of parking. Now that that restraint was removed, he stated it got down to the core issue of people trying to beat the Assessor and the Federal Government on income and he did not believe this should be encouraged. Mayor Boro believed it was not right for an owner to wait until he sold his property to legalize and have the new owner assume the cost. He stated that to publicize the program and give a year's notice, should people truly wish to legalize their units, want to be responsible and pay their way for what they had incurred, the improvements made and income being received, he believed they would come in. Should they wish to try to beat the system, they would wait until the property was sold and pass the cost on to the buyer, which is what had been happening to date. Mayor Boro stated that with a year's program and plenty of time to notice it, people could apply during that year. His goal was to entice as many people who truly wished to legalize their units to do so, and not to remove the one window of opportunity. Councilmember Cohen clarified with Mayor Boro that the program would be extended to one year, imposing a triple fee at the end of that time. Councilmember Phillips clarified it was not going to triple fees, rather going from double to triple fees. Mayor Boro invited Community Development Director Brown to explain the order of magnitude of the fee so that everyone could understand the numbers. Mr. Brown confirmed that basically during the amnesty period the typical building permit fee for a second unit legalization is approximately $500. After the one-year period, a triple fee would be applied, going from $500 to $1,500 for illegal construction. He confirmed for Mayor Boro that currently, it would be $1,000; therefore, it was not tripling the current fee, rather increasing it by another third. Councilmember Cohen confirmed that this pertains to legalizing installed units; however, should someone wish to create a second unit, the building permit fee would be approximately $500. The title of the ordinance was read: "AN ORDINANCE OF THE CITY OF SAN RAFAEL ESTABLISHING A LEGALIZATION INCENTIVE PROGRAM FOR WAIVER OF PAYMENT OF INVESTIGATORY FEES FOR ISSUANCE OF BUILDING PERMITS TO LEGALIZE CONSTRUCTION OF SECOND DWELLING UNITS THAT HAVE BEEN CONSTRUCTED WITHOUT REQUIRED BUILDING PERMITS" (as amended) Councilmember Heller moved and Councilmember Phillips seconded, to dispense with the reading of the ordinance in its entirety, and refer to it by title only, and adopt Charter Ordinance No. 1807 by the following vote, to wit: AYES: COUNCILMEMBERS: Cohen, Heller, Phillips and Mayor Boro NOES: COUNCILMEMBERS: Miller ABSENT: COUNCILMEMBERS: None OLD BUSINESS: 19. a) RESOLUTION ADOPTING CITY OF SAN RAFAEL BUDGET FOR FISCAL YEAR 2003/2004 b) RESOLUTION AMENDING THE 2002-2003 CITY OF SAN RAFAEL BUDGET (MS) - FILE 8-5 Reporting there had been four separate either Study Sessions or Budget Hearings, Assistant City Manager Ken Nordhoff stated it was hoped to embark on a two-year budget process, as was past practice; however, on May 19, projected deficits of $2.1 million for fiscal year 2003- 2004 and $4.3 million for 2004-2005 were identified. Mr. Nordhoff stated that given the fact the second year represented an approximate 10% gap in the General Fund, Council directed staff to prepare a one-year budget, the subject of this evening's action. Mr. Nordhoff reported that on May 19, Council considered a series of options put forth by the City Manager and staff. A number of directions were given on those items and on June 2nd these were codified to demonstrate $1.6 million of either revenue enhancements, expenditure SRCC Minutes (Regular) 07/07/2003 Page 11 SRCC Minutes (Regular) 07/07/2003 Page 12 reductions, or service reductions, leaving approximately $500,000 to resolve. He indicated that staff returned on June 16, 2003 to discuss the remaining $500,000, together with the San Rafael Choices results, New Capital Improvement efforts, and a very slimmed down list of New Service Requests. Based on the June 16 meeting, Mr. Nordhoff stated Council gave direction to close the budget gap for 2003-2004, which included some items considered at the June 16 meeting, listed at the bottom of page 3 and top of page 4 of the staff report. He stated the net cost to the General Fund of those items was approximately $137,000. Mr. Nordhoff stated this would leave the General Fund in balance as with all other funds, in excess of 40 in number. He stated the total budget proposed for 2003-2004 is $61 million and change; $57.6 million being the Operating Budget and the difference of approximately $3.3 million the Capital Budget. Mr. Nordhoff reported staff continues to maintain the list for 2004-2005 active and are still working through those items. He indicated that last week, the City Manager proposed a series of Study Sessions, beginning August 4, 2003 with the Business Cost Study, thereafter working forward with the various departments on their budgets through the fall. Mr. Nordhoff stated that at the June 301h hearing, Council had an opportunity to evaluate the two-year performance objectives and measurements, and he indicated this would be included in the budget document also. In conclusion, Mr. Nordhoff stated there was a separate resolution to the current year budget and the items were identified on schedules attached as Exhibits 1 and 2 to the staff report. He explained that primarily, staff was looking at bringing budget figures forward for a number of capital projects — Parking Structure, Corporation Yard - and other items being finished up. Mr. Nordhoff stated staff recommended Council adopt both resolutions, believing the actions, particularly for 2003-2004, codified all of Council's directions to this point in time. Mayor Boro referred to page 3 of the staff report concerning cutting overtime by 10% in all City departments and inquired as to the value of this cut. Mr. Nordhoff explained that overtime citywide was approximately $2 million with the General Fund portion $1.5 million; therefore, the 10% cut represented approximately $150,000. Mayor Boro thanked City Manager Rod Gould, Assistant City Manager Ken Nordhoff, City Department Heads and their staffs and the Employee Budget Group for all their work in reaching this point. He commented that perhaps the State would learn that one jurisdiction had adopted a budget. City Manager Rod Gould stated the Council should treat this as a provisional budget and understand that when the State does act, it could be necessary to reopen and rebalance the City budget accordingly. Councilmember Heller moved and Councilmember Phillips seconded, to adopt the resolution. Councilmember Phillips also seconded Mayor Boro's comments concerning the staff. a) RESOLUTION NO. 11359- RESOLUTION APPROVING THE BUDGET FOR FISCAL YEAR JULY 1, 2003 — JUNE 30, 2004 AND PROVIDING FOR THE APPROPRIATIONS AND EXPENDITURE OF ALL SUMS SET FORTH IN SAID BUDGET, IN THE AMOUNT OF $61,028,697 AYES: COUNCILMEMBERS: Cohen, Heller, Miller, Phillips and Mayor Boro NOES: COUNCILMEMBERS: None ABSENT: COUNCILMEMBERS: None Councilmember Cohen moved and Councilmember Phillips seconded, to adopt the resolution. b) RESOLUTION NO. 11360— RESOLUTION AMENDING THE 2002-2003 BUDGET AYES: COUNCILMEMBERS: Cohen, Heller, Miller, Phillips and Mayor Boro NOES: COUNCILMEMBERS: None ABSENT: COUNCILMEMBERS: None SRCC Minutes (Regular) 07/07/2003 Page 12 SRCC Minutes (Regular) 07/07/2003 Page 13 COUNCILMEMBER REPORTS: 20.. City Council Meeting of July 21, 2003 — File 1-4-2 x 9-1 Noting that two, and potentially three, Councilmembers would be absent, Mayor Boro indicated it could be necessary to reschedule the City Council meeting of July 21, 2003. Should the meeting take place, he suggested deferring the General Plan Presentation to a meeting with a full Council present to enable all to thank the Committee. Councilmember Cohen concurred, stating the General Plan Steering Committee had spent three years preparing these recommendations and there were some serious issues to be confronted over the next year or so; therefore, the presentation should take place on a night when everyone could be present to afford it the attention it deserved. City Manager Gould commented that if Councilmember Cohen could make the meeting it would be helpful as there were a number of items scheduled for that evening, i.e., hearings on housing units and the return of the U.S. Patriot Act question, where staff would propose some protocols to deal with issues involving requests for information. Mr. Gould stated the General Plan presentation could be postponed to the first meeting in August. He cautioned that staff had not envisioned the presentation getting into all the issues that would be raised as part of the General Plan draft for fear it would be viewed by the public as a hearing, and several interest groups and individuals would attend to attempt to debate with the Council immediately certain implications of some of the policies contained in the draft, which staff believed would be better left until after the Environment Impact Report had been prepared and hearings begun before the Planning Commission. Mr. Gould stated staff envisioned it more as a ceremonial presentation and a chance for the Steering Committee to talk to the City Council about all the efforts made to reach out to the community, its deliberative process and generally, its vision for the 2020 General Plan, and for the City Council to accept the work and thank and congratulate them. Mayor Boro concurred, indicating it had to be framed in such a way to make it very clear that the report would not be discussed, rather Council was receiving the report and thanking the Steering Committee, and he believed the full Council should be present. Mayor Boro stated he did not favor having the Patriot Act on the agenda for July 21, 2003 unless a full Council was present also. Councilmember Cohen to confirm his availability with City Manager Gould. In the absence of a quorum, meeting of July 21, 2003 to be cancelled. There being no further business, the City Council meeting was adjourned at 9:26 p.m. Mayor Boro announced the Closed Session item and Council adjourned to Conference Room 201: CLOSED SESSION — CONFERENCE ROOM 201 — 9:26 PM Public Employee Performance Evaluation (Government Code Section 54957) Title: City Manager At the conclusion of the Closed Session at 11:35 p.m., Mayor Boro announced that no reportable action was taken. JEANNE M. LEONCINI, City Clerk APPROVED THIS DAY OF 12003 MAYOR OF THE CITY OF SAN RAFAEL SRCC Minutes (Regular) 07/07/2003 Page 13