HomeMy WebLinkAboutCC Minutes 2000-05-15SRCC MINUTES W -alar) 5/15/2000 Page 1
IN THE COUNCIL CHAMBER OF THE CITY OF SAN RAFAEL, MONDAY, MAY 15, 2000 AT 8:00 PM
Regular Meeting: Present: Albert J. Boro, Mayor
San Rafael City Council Paul M. Cohen, Councilmember
Barbara Heller, Councilmember
Cyr N. Miller, Councilmember
Absent:
Also Present: Rod Gould, City Manager
Gary T. Ragghianti, City Attorney
Jeanne M. Leoncini, City Clerk
CLOSED SESSION:
None.
ORAL COMMUNICATIONS OF AN URGENCY NATURE:
Gary 0. Phillips, Councilmember
8:22 PM
RE: CHILD CARE RELOCATION - File 9-3-65 x (SRRA) R-419 x (SRRA) 140 XVIII ,
Arlette Cohen spoke on behalf of Big People for Short School Concerned Citizens for
Quality Child Care, expressing their concern that in the process of relocating the child
care center from the Gerstle Park neighborhood to Albert Park, the size allocated to the
pre-school and toddler programs has been cut in half. She stated the early childhood
program at Short School is exceptional, and one of the best in the County. However, the
new $2.3 million building will not maintain current quality standards, nor serve future
needs, and parents fear the proposed size reduction portends a serious degradation in
quality, turning a marvelous early educational environment into a barely adequate day care
institution. Ms. Cohen asked the City to commit itself to creating an appropriate size
center, noting Big People for Short School Concerned Citizens for Quality Child Care was
willing and able to help find additional funding, if necessary. She urged the
Councilmembers to take this opportunity to stand up as advocates of children and for
quality child care, and to request that the Park and Recreation Commission re -visit its
decision limiting the size of the building footprint, allowing enough space to ensure that
the quality of the current program be maintained in the new facility.
Mayor Boro stated the Councilmembers were well aware of the issues, noting there had been
a number of meetings between Big People for Short School Concerned Citizens for Quality
Child Care, City staff, and others interested in the issue. He reported staff would
continue to work on this issue, and stated the City would maintain a high level of pre-
school child care at that site.
CONSENT CALENDAR:
Councilmember Heller moved and Councilmember Miller seconded, to approve the following
Consent Calendar items:
ITEM
1. Approval of Minutes of Regular Meetings of Monday,
April 17, 2000 and Monday, May 1, 2000 (CC)
2. Call for Applications for Appointment to Fill One,
Four -Year Term on the Design Review Board Due to
Expiration of Term of Robert J. Huntsberry,
Architect - Term to Expire End of June, 2004 (CC)
- File 9-2-39
RECOMMENDED ACTION
Minutes approved as
submitted.
Approved staff recommendation:
a) Called for applications to
fill one, four-year term on
the Design Review Board
(Licensed Architect or
Licensed Landscape Architect),
due to expiration of term of
Robert J. Huntsberry,
Architect, with applications
due by deadline of Tuesday,
June 6, 2000 at 12:00 Noon in
the City Clerk's Office, Room
209, City Hall; and b) Set
date for interviews of
applicants at a Special City
Council meeting to be held on
Monday. June 19, 2000,
commencing at 6:00 PM, to fill
one, four-year term to the end
of June, 2004.
SRCC MINUTES (Regular) 5/15/2000 Page 1
SRCC MINUTES (Rr lar) 5/15/2000 Page 2
3. Call for Applications for Appointment to Fill One,
Four -Year Term on the Planning Commission Due to
Expiration of Term of Maribeth Bushey -Lang - Term
to Expire End of June, 2004 (CC) - File 9-2-6
Approved staff recommendation:
a) Called for applications to
fill one, four-year term on
the Planning Commission, due
to expiration of term of
Maribeth Bushey -Lang, with
applications due by deadline
of Tuesday, June 6, 2000 at
12:00 Noon in the City Clerk's
Office, Room 209, City Hall;
and b) Set date for interviews
of applicants at a Special
City Council meeting to be
held on Monday, June 19, 2000,
commencing at 6:30 PM, to fill
one, four-year term to the end
of June, 2004.
4. Summary of Legislation Affecting San Rafael (CM) Approved staff recommendation:
- File 116 x 9-1 AB 2451 (Runner), Motor
Vehicle Fuel Taxes. Local
Roads: SUPPORT; SB 2017
(Perata), Local Planning:
OPPOSE.
5. Resolution Proclaiming June 14 Flag Day in the RESOLUTION NO. 10635 -
City of San Rafael (CM) - File 110 RESOLUTION PROCLAIMING JUNE
14, 2000 AS FLAG DAY IN THE
CITY OF SAN RAFAEL.
6. Resolution of Appreciation to the City of Novato - RESOLUTION NO. 10636 -
Recipient of the California Cities Helen Putnam RESOLUTION OF APPRECIATION TO
Award for Excellence - for Hamilton Base Re -Use THE CITY OF NOVATO - RECIPIENT
(CM) - File 102 x 179 x 219 x 9-11-1 OF THE CALIFORNIA CITIES HELEN
PUTNAM AWARD FOR EXCELLENCE
FOR HAMILTON BASE RE -USE.
7. Request for Amicus Participation: (CA)
- File 9-3-16
Associated Home Builders of Northern
California v. City of Napa
(California Court of Appeal No. A090437)
8. Report on Bid Opening and Award of Contract to
Bauman Landscape, Inc., Re: Fifth Avenue City
Hall Sidewalk Repair, Project No. 019-4438-489-8000
(Bid Opening Held Tuesday, May 9, 2000) (PW)
- File 4-1-520 x 11-7
9. Resolution Authorizing Street Closure for the
Bananas at Large "DJ Mix -Off" Event on Sunday,
May 21, 2000 ("E" Street Between Fourth Street
and Fifth Avenue from 9:00 AM to 5:00 PM) (RA)
- File 11-19
Approved amicus participation
(Pending before First District
Court of Appeal).
RESOLUTION NO. 10637 -
RESOLUTION OF AWARD OF
CONTRACT FOR 'FIFTH AVENUE
CITY HALL SIDEWALK REPAIR'
TO BAUMAN LANDSCAPE, INC., IN
THE AMOUNT OF $100,330.00
(Lowest responsible bidder).
RESOLUTION NO. 10638 -
RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF SAN RAFAEL
AUTHORIZING THE TEMPORARY
CLOSURE OF A CITY STREET FOR
THE BANANAS AT LARGE DJ MIX -
OFF.
AYES: COUNCILMEMBERS: Cohen, Heller, Miller & Mayor Boro
NOES: COUNCILMEMBERS: None
ABSENT: COUNCILMEMBERS: Phillips
SPECIAL PRESENTATIONS:
10. PRESENTATION OF CALIFORNIA SOCIETY OF MUNICIPAL FINANCE OFFICERS CERTIFICATE OF
AWARD - MERIT IN OPERATIONAL BUDGETING 1999-2001 (CM) - File 109 x 8-5 x 9-3-20
Mayor Boro noted Assistant City Manager Kenneth Nordhoff had recently been
recognized by the League of California Cities for his role as Assistant City Manager
and the work he has done for the City, and now the City of San Rafael was being
presented with an award from the California Society of Municipal Finance Officers
recognizing merit in operational budgeting for 1999-2001. Mayor Boro explained that
this past year the City had, for the first time, adopted a two-year budget, and the
budget was submitted to this organization at the national level, where they felt it
SRCC MINUTES (Regular) 5/15/2000 Page 2
SRCC MINUTES (Remular) 5/15/2000 Page 2
Call for Applications for Appointment to Fill One,
Four -Year Term on the Planning Commission Due to
Expiration of Term of Maribeth Bushey -Lang - Term
to Expire End of June, 2004 (CC) - File 9-2-6
Approved staff recommendation:
a) Called for applications to
fill one, four-year term on
the Planning Commission, due
to expiration of term of
Maribeth Bushey -Lang, with
applications due by deadline
of Tuesday, June 6, 2000 at
12:00 Noon in the City Clerk's
Office, Room 209, City Hall;
and b) Set date for interviews
of applicants at a Special
City Council meeting to be
held on Monday, June 19, 2000,
commencing at 6:30 PM, to fill
one, four-year term to the end
of June, 2004.
4. Summary of Legislation Affecting San Rafael (CM) Approved staff recommendation:
- File 116 x 9-1 AB 2451 (Runner), Motor
Vehicle Fuel Taxes. Local
Roads: SUPPORT; SB 2017
(Perata), Local Planning:
OPPOSE.
5. Resolution Proclaiming June 14 Flag Day in the RESOLUTION NO. 10635 -
City of San Rafael (CM) - File 110 RESOLUTION PROCLAIMING JUNE
14, 2000 AS FLAG DAY IN THE
CITY OF SAN RAFAEL.
6. Resolution of Appreciation to the City of Novato - RESOLUTION NO. 10636 -
Recipient of the California Cities Helen Putnam RESOLUTION OF APPRECIATION TO
Award for Excellence - for Hamilton Base Re -Use THE CITY OF NOVATO - RECIPIENT
(CM) - File 102 x 179 x 219 OF THE CALIFORNIA CITIES HELEN
'/1 "1 PUTNAM AWARD FOR EXCELLENCE
FOR HAMILTON BASE RE -USE.
7. Request for Amicus Participation:
- File 9-3-16
Associated Home Builders of
California v. City of Napa
(California Court of Appeal
8. Report on Bid Opening and Award of
Bauman Landscape, Inc., Re: Fifth
Hall Sidewalk Repair, Project No.
(Bid Opening Held Tuesday, May 9,
- File 4-1-520 x 11-7
(CA)
Northern
No. A090437)
Contract to
Avenue City
019-4438-489-8000
2000) (PW)
9. Resolution Authorizing Street Closure for the
Bananas at Large "DJ Mix -Off" Event on Sunday,
May 21, 2000 ("E" Street Between Fourth Street
and Fifth Avenue from 9:00 AM to 5:00 PM) (RA)
- File 11-19
Approved amicus participation
(Pending before First District
Court of Appeal).
RESOLUTION NO. 10637 -
RESOLUTION OF AWARD OF
CONTRACT FOR 'FIFTH AVENUE
CITY HALL SIDEWALK REPAIR'
TO BAUMAN LANDSCAPE, INC., IN
THE AMOUNT OF $100,330.00
(Lowest resnonsible bidder).
RESOLUTION NO. 10638 -
RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF SAN RAFAEL
AUTHORIZING THE TEMPORARY
CLOSURE OF A CITY STREET FOR
THE BANANAS AT LARGE DJ MIX -
OFF.
AYES: COUNCILMEMBERS: Cohen, Heller, Miller & Mayor Boro
NOES: COUNCILMEMBERS: None
ABSENT: COUNCILMEMBERS: Phillips
SPECIAL PRESENTATIONS:
10. PRESENTATION OF CALIFORNIA SOCIETY OF MUNICIPAL FINANCE OFFICERS CERTIFICATE OF
AWARD - MERIT IN OPERATIONAL BUDGETING 1999-2001 (CM) - File 109 x 8-5 x 9-3-20
Mayor Boro noted Assistant City Manager Kenneth Nordhoff had recently been
recognized by the League of California Cities for his role as Assistant City Manager
and the work he has done for the City, and now the City of San Rafael was being
presented with an award from the California Society of Municipal Finance Officers
recognizing merit in operational budgeting for 1999-2001. Mayor Boro explained that
this past year the City had, for the first time, adopted a two-year budget, and the
budget was submitted to this organization at the national level, where they felt it
SRCC MINUTES (Regular) 5/15/2000 Page 2
SRCC MINUTES (RP-1alar) 5/15/2000 Page 3
set a fine example, was comprehensive, easy to read and understand. Mayor Boro
stated this award was a great acknowledgment of the work Mr. Nordhoff and his staff
have done, and on behalf of the Council, he congratulated Mr. Nordhoff and thanked
him for the great work he does for the City.
Assistant City Manager Nordhoff accepted the award on behalf of the City and thanked
the Council, noting he felt the City had been progressively making improvements in
both the budget process and the budget document over the past several years, which
was something he hoped to continue. He felt much of the credit went to City Manager
Gould for his leadership, and to staff, who put in countless hours in both the
process and the document preparation.
OLD BUSINESS:
11. REPORT REGARDING ACQUISITION OF CONTEMPO MARIN MOBILEHOME PARK (RA) - File 13-7-1
Economic Development Director Nancy Mackle recalled that last Fall the City Council
held a special study session to discuss Contempo Marin Mobilehome Park, including
the Rent Control Ordinance and the possible park purchase by the tenants. She
explained the City Attorney's office has been handling the rent control issue, and
had made several presentations before the Council; however, she pointed out that
issue was not included in this report.
Ms. Mackle reported staff had met with a sub -committee of the Council, comprised of
Councilmembers Cohen and Phillips, and with park representatives as a follow-up to
the study session. She noted they reviewed proformas, which addressed sources and
uses of funds, the estimated purchase price, and capital expenditures. They also
spoke with condemnation attorneys, as the park is not for sale and the only way the
City could acquire it would be through condemnation. She stated staff had asked, if
the City were to do that, what that would do to the process and to the price, and
the answer was that there were a lot of unknowns and a lot of risks. She noted,
with just the purchase price alone, if the price varied 5% to 10%. the City could
get into a financial gap of millions of dollars for which it had not planned. In
addition, the City could face attorneys' fees, as well as due diligence
responsibilities.
Ms. Mackle stated it was staff's recommendation that until the park becomes
available for sale, the City drop its pursuit of purchase, explaining staff believed
there was too much risk involved, noting a jury would decide the price and other
related issues if the City were to go through the condemnation process. However,
Ms. Mackle reported that as staff and the sub -committee met and discussed this
issue, they recognized there was a need to try to do something, or at least to
investigate what the City might do to help the low-income tenants at the park. She
explained they began to discuss the idea of a rent subsidy, and while she did not
have a report to present at this time, staff hoped to determine whether the Council
would be interested in such an idea, and whether they would like to direct staff to
continue to work with the sub -committee and look for possible funding sources,
continue to work with the tenants and discuss income levels and what constitutes
low-income, and try to determine how deep a subsidy could be provided and what it
would cost.
Councilmember Cohen stated he was supportive of the concept of the tenants acquiring
the mobilehome park, noting he had spoken strongly in favor of working with the
residents to investigate those possibilities. However, with the information
available at this time, both he and Councilmember Phillips had come away feeling it
was not a viable option at the present time, and that the level of risk and exposure
to the City, and to some of the residents, as well, was unacceptably high. He
reported the figures they had looked at regarding what rents would have to be in
order to make the numbers work with a tenant -owned corporation owning the park,
seemed to be very high and with very thin margins. He believed that at some point
the Council had to consider what the intent is, noting that if it is to preserve
affordability, perhaps acquiring the park as a hostile acquisition was not going to
be the best way to do that, because if it ends up with a very high acquisition
price, the rents the tenants are going to have to charge themselves are going to be
quite high.
Mr. Cohen noted another issue staff had previously discussed was that property
acquisition with an unwilling seller always takes longer than expected, and always
costs a lot more money than the City's initial estimates, both for the attorneys and
for the underlying property. He pointed out that caution had not been abated by any
of the investigation he and Councilmember Phillips undertook. He stated that if
there was a way to find someone to "back -stop" the funding gap, someone who would be
willing to put several million dollars at risk in the event the price turned out to
be substantially higher than the assumptions that make the purchase work, then the
City would take a look at that. However, until some "guardian angel" steps forward
SRCC MINUTES (Regular) 5/15/2000 Page 3
with funds he is willing to
think they can get the park
actually says it is, he did
proceed.
SRCC MINUTES (RPlular) 5/15/2000 Page 4
put at risk in case there is a gap between what they
for and what its appraised value is, and what a jury
not see how the City Council could, in good faith,
Mr. Cohen noted he did not entirely agree with the wording of the staff report,
noting that while he could not support moving forward at this time, based on the
information available, he did not want to shut the door as firmly as it is implied
in the staff report. Referring to the recommendation to discontinue efforts to
acquire until such time as the property becomes available, Mr. Cohen noted there
could be other ways in which this issue could become feasible and worth evaluating
again, other than MHC (Manufactured Homes Corporation) coming forward and stating
they had decided to sell the park to the tenants, and he felt that should be
acknowledged in the staff report. He stated he was not suggesting the
recommendation be changed; however, he felt the City should indicate a willingness
to continue to look at the issue, and if the situation changes, the City should be
willing to take it up again. Mr. Cohen stated, conceptually, this was something he
supported, although he could not find a way to make it happen or bring it forward,
at this time, in a way he believed would be feasible.
Mr. Cohen reported that in their earlier conversations they had agreed they wanted
to do more, noting that while the City could be proud of what it has done so far,
there was still more that could be done, particularly for low-income tenants and
tenants on fixed incomes. He believed if that was really what the City was trying
to do, then they should look at other vehicles to do that, and perhaps partner with
those who have funding sources within the County, to try to reach out farther than
the City has so far. He noted since that was beyond the scope of the sub -committee,
which had been charged with investigating park purchase to determine whether or not
it was feasible to acquire the park, they felt they should come back to the Council
for approval before asking staff to do more work on that issue. He acknowledged
there was not a lot of detail in terms of what they had discussed regarding a
possible rental subsidy program, noting it had not seemed appropriate to ask staff
to spend a lot of time on that if there were not three votes on the Council in favor
of such a program. Mr. Cohen stated he believed there was some virtue in exploring
that area, and recommended the City pursue it and see what the options are.
Councilmember Heller stated that if Mr. Cohen wanted to leave the door open a little
more on the issue of purchase, she believed all the Councilmembers were willing to
do that, as no one wanted to see the City give up what it had put into the park.
She noted she would be happy to have staff continue to look for funding sources and
subsidies, and also to look to some of the other mobilehome parks in the State, as
they are all under the same pressures of rents going up and the difficulties people
are experiencing. Ms. Heller stated she would like to see staff continue to
investigate the issue of subsidies.
Mayor Boro noted everyone had hoped there would be a way the City could do this, but
the practicality at this point, as described by Councilmember Cohen, was not very
achievable. He stated that as those in the audience addressed the Council, he would
be interested in having them share any thoughts they might have with respect to a
subsidy program, and who they believed might be effective. Mayor Boro recalled that
during one of the meetings the City held to discuss Contempo Marin, a representative
of the park had stated they would personally come in and help on this, and he felt
that might be another avenue to pursue. He stated he would be interested in the
tenants' thoughts on this subject.
Mayor Boro invited public comment.
Tineke Colenbrander, President of the Contempo Marin Homeowners Corporation, stated
that after ten years of preparing the grassroots and educating the community in
order to convert Contempo Marin Mobilehome Park to a non-profit corporation, and
after working closely in recent years with City staff members and Housing Consultant
Dick Bornholdt, the Board of the Park Purchase Corporation felt the need to express
their deep disappointment. She acknowledged they had known all along that their
goal was a very complex one, noting the owners of the land were not willing to sell,
and a very high percentage of low- and very low-income residents made it difficult
to finance such a project; however, the last reason made it all the more necessary.
Ms. Colenbrander stated she was very pleased to hear the Council would like to at
least keep the door open, noting it has always been her belief that if the
motivation is strong enough, there is a way.
Ms. Colenbrander acknowledged the tenants were better off with the Rent
Stabilization Ordinance than without it, and they were deeply grateful for that;
however, she believed there was an ongoing threat to that Ordinance, and to their
lifestyle. She reported the park owners were doing anything they could to save
money, noting that since December the park has had no Manager. In addition, the
County issued an order to improve the swimming pool, which has been neglected for
SRCC MINUTES (Regular) 5/15/2000 Page 4
SRCC MINUTES (RP-ilar) 5/15/2000 Page 5
years and become unsafe. Ms. Colenbrander stated rules and regulations are no
longer enforced, and worst of all, older single units are being bought for
"peanuts", and big beautiful new homes are replacing them. She reported new
residents are now paying close to $200,000 for such homes, while those who cannot
afford it can no longer come to live in Contempo Marin, pointing out that,
traditionally, the park has been a last resort for those who have a small retirement
income. She stated the tenants have asked the City Council to protect the
affordability of living in the park; however, the new economy has caught up with the
way things were, and she believed the cornerstone of affordable housing in San
Rafael, as Mayor Boro once referred to Contempo Marin, has now fallen out. Ms.
Colenbrander believed that if the motivation had been there, the City could have
joined forces with the County and the Marin Community Foundation to save this park.
She stated the rise in interest rates had not posed a direct threat to their
financial proformas, pointing out they were based on the current rents, and noting
they had not raised those figures. In addition, she reported that while the
interest rates have gone up, the State's program for 3% loans has been stretched for
purposes such as theirs, providing long-term loans; therefore, they could do some
shifting in their financial plan.
Ms. Colenbrander stated she was afraid their project did not fit the City's
political agenda, acknowledging it was an exciting time of growth and fantastic
expectations, and the Council had to set its priorities; however, she felt those
priorities had been turned away from Contempo Marin. The tenants believed the City
had a responsibility to protect the lifestyle at Contempo Marin; however, the Rent
Control Ordinance did not guarantee them stress -free living, nor was the City free
from further challenges from the park owners. Ms. Colenbrander stated the residents
would not close the books on park purchase efforts, and it was their hope that
something could be done for those with the lowest incomes in the park. She noted
she has already worked with Housing Consultant Dick Bornholdt on possibly forming a
fund or foundation to make money through investments, which could be used as
subsidies for those with the lowest incomes, and she would be most happy to continue
to work with Mr. Bornholdt regarding that issue. Ms. Colenbrander stated there
would be an ongoing commitment on the part of the residents to convert the park to a
non-profit, resident -controlled corporation.
Tom Davis, 22 Yosemite Road, stated he had read the staff recommendation, and like
most of the residents at Contempo Marin, he was disappointed that a viable park
purchase plan did not seem to be possible, at least for now; however, he did not
believe this issue was going to disappear anytime soon. He noted that as the
Council is aware, Contempo Marin is a community consisting of 395 units of owner -
occupied affordable housing, and it is one of the few places remaining in Marin
where people of modest means can dream of owning a home and building an equity. Mr.
Davis stated the park owner, Manufactured Homes Corporation, has plans for the
property which differ greatly from its present use, noting MHC has told its
shareholders and the City they plan to upgrade the housing stock and tenant profile.
He stated MHC also plans to raise the site rents, and has told the City that unless
the Rent Control Ordinance is changed to allow rent increases upon the sale of a
house, they will sue the City. Mr. Davis believed affordable housing, as it
presently exists at Contempo Marin, is under threat, and he hoped the Council would
take this opportunity to express its commitment to preserving their community as a
unique source of affordable housing.
Regarding rental assistance, Mr. Davis noted the Housing Authority has an existing
plan for rental assistance, and suggested that before the Council invents something
new, from the ground up, that it look at funding the Housing Authority's existing
program. He pointed out they already have staff and criteria in place, what they do
not have is money to pass out to people, and that is what they need most. Mr. Davis
stated that in line with Councilmember Cohen's suggestion that the wording of
staff's recommendation be changed, he recommended it read, "1. The City will cease
its current efforts to assist the residents of Contempo Marin in purchasing the
mobilehome park from Manufactured Homes Corporation. 2. The City remains firm in
its commitment to preserve Contempo Marin as affordable housing, and will support
such measures as it finds will contribute to that goal including, if necessary,
strict enforcement of zoning, rent control, and General Plan provisions that relate
to that property".
Whitfield King, President of the Contempo Marin Homeowners Association, stated he
could only echo the comments that have been made regarding his disappointment in the
recommendation. He believed there were certain avenues that had not been explored,
noting he was still exploring ideas on how to provide the $5 million or $6 million
gap coverage. He urged the Council to keep the door open, and to remember that
nothing is going to get cheaper, noting he believed the longer they delay in trying
to acquire the park, the more expensive it becomes for everyone. Mr. Kinq stated
the Council could not afford to just say, "No, we're not ever going to do it".
SRCC MINUTES (Regular) 5/15/2000 Page 5
SRCC MINUTES (RF -alar) 5/15/2000 Page 6
Mr. Kinq reported the owners continue to try and upgrade the park; however, they
have not been able to find a manager since December, and he believed the owners were
either not willing to hire someone qualified, who would demand a good salary, or
they were trying to hire someone who would simply be a "yes man", and not the
responsible manager they need at the park. Mr. Kinq stated he was working on other
paperwork regarding that matter, which he would present to Council later this year,
and which he believed would prove very interesting to everyone.
Mayor Boro thanked the residents for attending the meeting and speaking before the
Council. He stated it had been his recollection that if the City did decide to go
forward and condemn the property and go to court, it would actually be the County
that would have to do that, rather than the City and, therefore, it would be the
County that would be liable. He stated that was another one of the roadblocks that
would have to be overcome, and which did not seem very practical. He asked staff to
make certain that was put into words so people could understand it. City Manager
Gould verified the City of San Rafael would not have jurisdiction to acquire the
park and place it into private hands; therefore, the City would have to work through
another agent, and the most logical agency to condemn the park, if necessary, would
be the County Housing Authority. He reported early discussions with the Housing
Authority showed some trepidation, and it was made clear that if the Housing
Authority were to become involved in this matter that it would look to the City for
full reimbursement of any and all costs associated with the acquisition. Therefore,
in a way, it would evolve back to the Council.
Referring to the earlier comment regarding the $200,000 homes coming into the park,
Mayor Boro noted Contempo Marin is called out as an example of affordable housing in
the City's General Plan, pointing out that, normally, if affordable housing is lost
or destroyed, there is a requirement that it be replaced or replicated somewhere
else. He asked City Attorney Ragghianti to look into that issue and see if it might
apply to Contempo Marin, noting that might be an avenue the City could pursue, and a
way to hold down some of the new increases. City Manager Gould stated several
people had referred to, implied, or threatened litigation regarding the City's Rent
Control Ordinance, noting there were letters indicating the park owners' great
displeasure with the strengthening of the Rent Control Ordinance, which Council
approved last year. Mr. Gould reported the City Attorney's office had responded to
the park owners, evaluating the arguments they put forth, and expressing the City's
confidence that its Rent Control Ordinance was, indeed, legal and would withstand
legal challenge. Mr. Gould stated that unless directed otherwise, it was staff's
impression that Council's direction was to vigorously and fully defend the Rent
Control Ordinance, which Council put in place years ago and recently strengthened.
Further, he reported the City Attorney's office, in particular, has spent many hours
running down every avenue of this issue in the last several years, in hopes of
protecting the interests of the residents of Contempo Marin.
Warren Edqar, Vice -President of the Contempo Marin Homeowners Corporation, referred
to the issue of affordable housing, noting their efforts seemed to reflect the mere
lip service affordable housing receives in the newspaper. He stated the City was
about to lose something that is very affordable and very much here, and he urged
Council to reflect on what it would cost, if this housing is lost, to replace those
396 units. He also expressed his concern that the Rent Control Ordinance was only
there for as long as it satisfies the political climate, but when that changes, the
Rent Control Ordinance could be in trouble.
Mayor Boro pointed out the Council's historical support for Contempo Marin and the
Rent Control Ordinance, and to the City's effort toward affordable housing
throughout the entire community. He believed those issues were something anyone
running for office in San Rafael usually supported, and if they did not, they
usually were not elected. Mayor Boro believed the community generally supported
this effort, noting that politically, it was a positive thing, and he felt the
City's track record was very positive in this arena. Mr. Edqar stated his remarks
had been directed more toward the political climate in Sacramento.
Mayor Boro noted Councilmembers Cohen and Phillips would remain available to work
with people in the community if something comes about, or if staff has an issue,
they will act as liaison between the City and the residents.
Councilmember Cohen explained one of the reasons he suggested changing the wording
to state, "Discontinue efforts to acquire Contempo Marin at this time", or something
similar, was because he was more than willing to remain available. He informed Mr.
King that if he should have something to bring forward that might be an option for
dealing with this situation, he would be available and would like to review it.
Furthermore, Mr. Cohen reiterated he, too, was deeply disappointed, as this was a
goal he believes in. However, he did not fully agree this was a matter involving a
force of wills, noting there were a number of important questions involved which he
was not able to resolve. For example, he referred to the numbers he and
Councilmember Phillips had reviewed with Mr. Bornholdt, and while he was not
challenging those numbers, and he understood they had used the current rent
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structures, he pointed out that in his mind, and that of Councilmember Phillips, who
is an astute financial analyst, it was a financial package which worked if
everything went right, if all the assumptions were good, if the park was assumed to
be in good condition, even though there is a lot underground that the City knows
nothing about. He explained that if everything was assumed to be the best case
scenario, the numbers worked to keep the rents where they are today, not to roll
them back, but to keep them where they are, where some people are struggling and
some are getting by. However, if things were to go wrong, if the park's mechanical
systems are in worse shape than was thought, which he felt was likely, if the cost
is higher for acquisition than was penciled in, which was also likely, and if the
fees involved, for such things as attorneys, are higher, then those rent assumptions
fell apart, and the tenants' association, itself, might be forced to raise rents in
order to make the acquisition a reality.
Councilmember Cohen stated he had to stop and ask himself what the goal was, noting
that if acquiring the park did not preserve affordability, then perhaps it was not
the right thing to be pursuing so aggressively. He stated he needed to see numbers
that made this pencil out better, noting some of that would be a big infusion of
cash. He stated there was also the issue that if the purchase price of the park
ballooned by a significant amount, which is where the $5 million they keep
mentioning comes from, it would become very difficult to put together a financial
package that works, to bond it and make it happen, and make it feasible without a
lump sum investment of cash. He stated at that point, unit for unit and person for
person, if someone were to give $5 million to be spent on affordable housing, he
would certainly argue for looking at the acquisition of Contempo Marin. However, in
fairness, he would also have to recommend that Council look at what else $5 million
would buy for the City, and what it could secure, either in ownership or in rental
housing subsidized in perpetuity in San Rafael. He believed those issues would have
to be weighed, and he could not, at this time, state that he knew what the answer to
that question would be. He pointed out the City did not have that lump sum amount
of money to spend on affordable housing, although the City does as much as it can
with what it has, everywhere, not just at Contempo Marin. However, even if the City
did have that kind of money for affordable housing, he believed the Council would
have to have a serious discussion about what the best way would be to spend the
money, in order to reach the most people in the most effective manner. Mr. Cohen
stated he would be willing to make a serious analysis of whether or not this was the
best place, although it would certainly be a strong candidate. He noted that if
there was another "angel" waiting in the wings, if the residents could get Marin
Community Foundation, or someone like them, to put some money toward this project,
he would be happy to discuss it; and if the picture changes, if there are other
vehicles for obtaining the money, or if the law changes so the City could have a
better idea of what the price would be, then he would want the residents to let the
City know. He reiterated he did not believe the Council should consider this idea
to be dead, although at the moment he did not see a way to make it feasible.
Councilmember Cohen stated he had no problem with Mr. Davis' suggestion, and no
doubt about what the Councilmembers thought; however, just so that no one takes the
document later, reviews the action taken by the Council, and mistakenly thinks the
Council did not care, he suggested staff add the following wording: 1) "The City of
San Rafael reaffirms its commitment to Contempo Marin as an important source of
affordable housing, and directs staff to continue to protect and enforce the Rent
Control Ordinance, and any and all General Plan policies and Zoning Ordinances that
preserve this important stock of affordable housing"; 2) "Discontinue efforts, for
the time being, to acquire Contempo Marin", and 3) "Investigate the possibility of,
and funding sources for, rental subsidies for Contempo Marin residents".
The Councilmembers voted unanimously to accept the staff report with the additional
wording.
CITY MANAGER'S REPORT:
12. CITY MANAGER'S REPORT (CM) - File 9-3-11 (Verbal)
City Manager Gould reported that this morning Governor Davis released his revision
to the State budget he proposed in January, and it includes an assumption of a $12.3
billion surplus. He explained the bulk of the surplus would be applied toward
education, with $4 billion for K-12 education, boosting per pupil spending by $359.
The Governor is also calling for a one-time tax rebate of $150 for single filers and
$300 for joint filers, and offering $545 million in tax relief for credentialed
teachers. Regarding cities, there is a $2.2 billion package over five years for
transportation projects and programs, which relies heavily on Federal funds and
local matches; a $400 million proposal for local road maintenance; and $250 million
earmarked for one-time discretionary funds for local cities and counties, with San
Rafael's share approximately $150,000. Mr. Gould stated there was also categorical
aid for various loan and grant programs addressing environmental issues, housing,
public safety and economic development, noting the details of those programs would
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be spelled out at a press conference tomorrow. Mr. Gould noted those programs,
while helpful and welcome, fall far short of what both the Assembly and Senate have
offered in their proposed budgets; therefore, cities were encouraged to step up the
pressure at the conference committees that will be trying to reconcile the proposals
of the two bodies of the Legislature, and also to continue to ask the Governor for a
little larger share of the surplus that will be directed to the cities. Mr. Gould
announced that tomorrow a delegation from Marin would be going to Sacramento, with
Assistant to the City Manager Lydia Romero leading the delegation, noting they would
be meeting with Legislative bodies and speaking to the City's interests.
Mr. Gould reported a joint press release had been issued today by Fair, Isaac and
the City regarding the proposal for the Lindaro office campus site. He noted that
tomorrow City representatives would be meeting with attorneys, City planners, and
representatives from Fair, Isaac and Wilson Cornerstone to discuss how the proposal
will be brought to Council for consideration. Mr. Gould stated they have stressed
in discussions with the news media that although the proposal has been approved by
Fair, Isaac's Board of Directors and by those in control of Wilson Cornerstone, it
was simply a proposal until the City Council acts upon it.
Mr. Gould stated staff had discussed downtown parking issues with Mayor Boro earlier
in the day, and how best to address the parking needs. He acknowledged the City
needed to get moving with the new parking structure and bring Council a site
alternative analysis, along the lines of what Councilmember Cohen had requested. In
addition, staff will commence negotiations on property acquisitions, obtain
appraisals, continue with the "bare bones" design, and present the Council with
financing options on how the parking structure would be paid for. Mr. Gould pointed
out there were other alternative sources of parking which staff needed to further
explore and develop. He noted that if, indeed, as part of the Fair, Isaac package
the City was able to acquire interim parking on the north side of the parcel, that
might offer the City the opportunity to move forward sooner with some of the
downtown projects; and certainly the reciprocal parking arrangement called for in
the agreement would offer longer-term parking on nights and weekends, and allow the
City's residents to share parking with the tenants of the new office complex. Mr.
Gould stated Mayor Boro had also made it clear that the City would make another
attempt to convince the owners of Courthouse Square to provide reciprocal parking
rights in that parking structure, noting staff will prepare answers to their
questions, in order to approach them again and try to secure that parking. In
addition, staff will study the cost of additional underground parking at the
cineplex site, and report back to Council with recommendations as to whether this
would be feasible. Mr. Gould stated the City was also hoping to convince Marriott
International Corporation to add a level of parking at their new hotel site to
replace what the City will lose at the BID (Business Improvement District) lot.
Mr. Gould reported the overall Parking Management Report has been re -drafted and
still has a long way to go; however, it will include the best practices and cost
recovery recommendations, which will be reviewed by staff in June, and then
presented at a special study session with the Council to discuss all of the parking
issues. He explained staff would also include public outreach to involve San
Rafael's citizens in looking at the issues that revolve around parking, noting that
as the issues are brought forward, the City would have the stakeholders' input, and
could be sure all the major interest groups were involved. He stated the study
would address issues such as staffing, enforcement, equipment maintenance, and
rates, and while the study may not be completed for the study session in June, staff
will be able to give Council a sense of what will be included. Mr. Gould asked for
Council's approval to schedule the study session, and asked them to consider the
third week in June. Mayor Boro agreed, noting they needed to discuss the entire
issue. He believed that as all the pieces come out, it will be like a huge puzzle
staff will put together, and when the City is done, it will have a great parking
picture. However, he wanted to make sure the pieces were put together in an orderly
fashion.
Mr. Gould recalled one component of the work program for the Public Works Department
was to conduct a vehicle replacement study to determine whether or not the City was
properly funding and replacing the vehicles in the City's fleet, and whether they
were being maintained properly. He stated he had looked at a re -draft of that study
and determined that, by and large, the City was on track. However, staff will have
to make some funding and policy decisions, which will be brought to Council in the
coming months.
Mr. Gould noted that for the past two years the Fire Department has participated in
an extraordinary fundraising event called the Alisa Ann Burn Relay, in which fire
departments from all over the North Bay travel from town to town in a convoy of
engines and apparatus, raising money for the victims of terrible fires, especially
children. Mr. Gould noted this was an amazing thing to witness, and was very
effective in raising funds for such a needy cause. He stated the Burn Relay would
be in San Rafael on Friday afternoon at approximately one o'clock, and for those who
might be able to watch the relay, he noted it was very inspirational, and would
really be something to see.
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COUNCILMEMBER REPORTS:
13. a. RE: MARIN COUNTY COUNCIL OF MAYORS AND COUNCILMEMBERS (MCCMC) DELEGATION TO
SACRAMENTO - File 113 (Verbal)
Councilmember Cohen stated it was his intention to join the MCCMC delegation
to Sacramento tomorrow.
There being no further business, the City Council meeting was adjourned at 8:50 PM.
X�" A _
JEANNE M. LEONCINI, City Clerk
APPROVED THIS DAY OF 2000
MAYOR OF THE CITY OF SAN RAFAEL
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