HomeMy WebLinkAboutCAC 2019-03-07 Minutes1
Citizens Advisory Committee for Economic Development and Affordable Housing (CAC)
City of San Rafael
Third Floor Conference Room, City Hall
March 7, 2019
Meeting Summary Notes
CAC Members Present: Bill Carney, Andrew Naja-Riese, Dirck Brinckerhoff, Andrea de la Fuente, Mari
Jones, Gladys Gilliland, William O’Connell
City Staff Present: Simon Vuong, Andrew Hening, Ethan Guy
Members of the Public Present: Jonathan Frieman, Lisel Blash, Lisa Doering
1. Call to order: Mr. Carney, Chair, called the CAC meeting to order at 7:02 pm.
2. Approval of February 7th Meeting Notes: Approved with one correction to item 3 – the developer of
the downtown hotel at 5th & B St. is Monahan Pacific. Also, one CAC member stated that per the
discussion of the Marin Square Project, in the CAC’s historical documents there are varies studies
focused on day laborer centers.
3. Presentation - Just Cause Evictions & Mandatory Mediation Update - Andrew Hening
Mr. Hening, Director of Homeless Planning and Outreach, provided an overview of San Rafael’s housing
markets, just cause evictions, and mandatory mediation. Mr. Hening shared various data points that
describe San Rafael’s ownership and rental markets. His primary thesis is that the long-term slowdown in
housing production in San Rafael is resulting in higher rental prices and lower vacancy rates. Challenges
exist for renters, who comprise 48% of residents in San Rafael, and for whom it is more difficult to
become owners. Further, the rate of overpayment—when more than 30% of income is spent on
housing—is increasing. In San Rafael, approximately 82% of persons of very low income are overpaying
on rent. The more money spent on rent, the less that is put into savings accounts or otherwise spent on
local goods and services.
In response, Mr. Hening presented an overview of recent activity on renter protection policies, including
mandatory mediation, which occurs when the landlord and renter must come together for mediation
based on some trigger point. Marin County adopted a threshold of a 5% rent increase over 12 months. To
date, there have been only 12 requested mediation cases, of which 6 were eligible for mediation, and 4
agreements were reached. CAC members asked Mr. Hening to explain the mediation process, how it
works, and who provides it. Currently, the County DA’s office provides mediation services for the County
for approximately $400 per mediation. Mr. Hening also explained that mediation is not required or
automatic, as it only occurs when requested by the landlord or tenant.
If the City were to implement mandatory mediation, at least 68 rental units would have been impacted at a
cost of $27,000. The mediation service is important, but the question remains of how to make it cost-
effective and sustainable. Additionally, there are drawbacks to mandatory mediation: the mediation
agreement reached between the tenant and landlord is non-binding so the desired outcomes are not
guaranteed. Tenants may also fear retaliation from their landlord when requesting mediation.
Mr. Hening further discussed the distinction between “for cause” and “no fault” evictions and when a
renter is forced to move. The County adopted a just cause ordinance: landlords of properties with 3 or
more units must provide a reason for ending a lease. In San Rafael, 68% of San Rafael renters would be
covered based on the County’s rule of 3+ units. The CAC discussed the potential implications of the just
cause eviction policy in San Rafael, including possible reduced investment in rental properties and
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exacerbation of barriers to building rental property units and/or converting second units. CAC members
shared an urgency in having more data to describe the benefits of a just cause eviction policy, as most of
the information known is anecdotal. However, one member of the public shared that data are available
through Legal Aid and that the County runs an important program called “Lawyers in the Library” to help
support tenants who may be affected by adverse rental situations.
CAC members thanked Mr. Hening for his presentation and look forward to updates about the topic when
it goes back to the City Council in May.
4. Presentation – Short Term Rentals – Ethan Guy
Mr. Guy, a new Principal Analyst for Community Development, presented an overview of short term
rentals in San Rafael. In January 2016, the City Council asked City staff to begin monitoring short term
rental (STR) activity in connection with the junior accessory dwelling unit ordinance. Currently, there are
approximately 286 active STR listings across a variety of sites, Airbnb and VRBO, representing a two-fold
increase in listings over 2016. Mr. Guy described provider-based practices for monitoring STRs and a
variety of regulation or permitting options. There are three options: (1) status quo (no regulation or
permitting), (2) minimal enforcement, or (3) STR ban. The staff recommendation is to not consider a ban
(Option 3) based on lessons learned from the City of Sausalito, and other factors. Mr. Guy reported
various financial projections for collecting fees through a permitting process and the associated break-
even points, net gains, or losses in collecting revenue through a transient occupancy tax on STRs and the
fees needed for staff to monitor and enforce permitting.
CAC members discussed the various options on the table, and some were perplexed as to what the
actual problem is that needs to be solved. There have been fewer than a dozen complaints regarding
STRs in the past three years, and it’s unlikely there would be a windfall of revenue from a STR permitting
program. San Rafael is not a “tourist town”. The CAC also discussed various situations when complaints
may occur, such as a neighbor complaining about guests at a short-term rental. Some members also
expressed concern over the loss of actual long-term rentable units that are being converted from a
residential rental market to a short-term rental market. One member of the public commented that there
should be a system for neighborhoods housing STR units to pursue complaints regarding rentals or to
offer noticing to neighbors when a property is registered for short-term rental units.
Mr. Guy shared that there may be more public outreach regarding STRs and possibly a survey of
homeowner associations or property owners. The CAC showed appreciation for Mr. Guy’s presentation
and requested updates on the STR options that the City Council may consider.
5. Project Updates
a. 88 Vivian St (68 for-sale townhomes): The 68-attached for-sale townhomes project went to the
Design Review Board, and the specific feedback was to “tone down” some of the colors, widen
some of the driveway widths, increase landscape setbacks, and install more resilient landscaping.
In general, the DRB liked the project as presented, but some expressed concern that this is the
beginning of gentrification in the Canal.
b. 703 3rd St. (Seagate—120 apartments/969 sf retail): This is a Seagate property with 120 units
under review by the Planning Commission. Some Commissioners would like to see more
affordable units, as well as more spaces for electrical vehicles. Retail space is limited with only
969 square feet. The CAC discussed the tradeoff between retail versus parking, and the
importance of retail, especially food services such as a restaurant or coffee shop. One CAC
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member also commented that with the density proposed there could be additional affordable or
moderate-income units.
c. 999 3rd St. (Biomarin/Whistlestop—207,000 sf commercial/67 senior units): The deadline for
Environmental Impact Report scoping comments is in approximately one week.
d. Northgate Walk (136 condominiums): The Project is again returning to the Design Review
Board and then on to the Planning Commission.
e. 1628 Fifth Ave. (9 condominiums): This 9-condo project was approved by the Planning
Commission on Feb. 12th with no appeals filed. The State density bonus kicked in to increase the
number of units from 6 to 9, with 1 affordable unit.
f. 1201 Fifth Ave. (140-room hotel): The 140-room hotel project will return to the Design Review
Board for a third time in response to some concerns.
g. Downtown Transit Center EIR Scoping Report: There is discussion of another public meeting
with results from the EIR process.
h. Other: None reported.
6. Public Comment on Non-Agenda Items: None
7. Suggestions for future agenda items:
Additional presentations from Developers, such as the Francisco Blvd. hotel.
Update on the Goldstone 4th Street project and the second survey that was administered.
Recreational cannabis program.
Because of the State of the City Dinner on April 4th, it was recommended that the CAC meeting
be postponed until April 11th. A quorum is expected.
9. Adjournment: Meeting was adjourned at 9:00 pm.
Respectfully submitted by Andrew Naja-Riese