Special and Regular City Council Meetings January 15, 2019

City Hall, Council Chambers · 3 hours 57 minutes · 6194 caption units

Council: Rochelle Pardue-Okimoto, Mayor · Greg Lyman, Mayor Pro Tem · Janet Abelson · Paul Fadelli · Gabe Quinto

Staff: Karen Pinkos, City Manager · Holly Charléty, City Clerk · Mark Rasiah, Finance Director · Melanie Mintz, Community Development Director · Sky Woodruff, City Attorney

Financial Advisory Board: Dick Patterson, Chair · Marlene Keller

The first meeting of 2019. The Financial Advisory Board tells the Council, unanimously, that “there hasn't been for a while a real reserve for this city” — the general fund reserve ratio stood at 2.4 percent — and proposes an Emergency and Disaster Recovery Fund, with “a substantial part of Measure V” to go into it. The Council also defers the tenant ordinances it introduced in December.

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Contents

20 sections
  1. 01A new city clerk
  2. 02Our part of the county's turnN
  3. 03A shell mound museumN
  4. 04We have nothing like thatS
  5. 05Through the cemeteryS
  6. 06Hold the December ordinancesS
  7. 07Four units or eightN
  8. 08Renters are an emergency tooS
  9. 09Santa Cruz's capN
  10. 10Perfection the enemy of the goodS
  11. 11Not realistic under Costa-HawkinsS
  12. 12Most of El Cerrito voted yes on Prop 10S
  13. 13Owed since before 2012S
  14. 14Two point four percentS
  15. 15A substantial part of Measure VS
  16. 16Three months grows every yearN
  17. 17OrovilleS
  18. 18No line of creditS
  19. 19A hotel next doorS
  20. 20Public land for market rateS

01 A new city clerk captions 1–199

0:02:49will the city court call roll

0:02:52council member abelson

0:02:54present council member fidelity here

0:02:57council member quinto here mayor pro tem

0:03:00lyman president mayor pardue akimoto

0:03:04president

0:03:07all right um we will now stand for the

0:03:09pledge of allegiance led by

0:03:11councilmember clinton

0:03:14i pledge allegiance to the flag of the

0:03:17united states of america and into the

0:03:20republic for which it stands

0:03:22one nation under god

0:03:24indivisible with liberty and justice for

0:03:27all

0:03:33all right do we have any communications

0:03:34from staff

0:03:36yes we do thank you your honor i'm karen

0:03:38pinkes city manager

0:03:40um

0:03:41i would like to introduce our new city

0:03:42clerk to you and to the community her

0:03:45name is holly charlottie we are very

0:03:47excited to have holly she comes to us

0:03:50from the vallejo flood and wastewater

0:03:52district where she was the board clerk

0:03:54prior to that she was a deputy city

0:03:56clerk in the city of sacramento she's

0:03:58got a ton of experience and we're just

0:04:01really excited to have her on board so

0:04:03welcome holly to your very first meeting

0:04:06i'd also like to publicly she's not here

0:04:09tonight but thank sherry kelly who is

0:04:11our acting city clerk many of you in the

0:04:13public met her and the council members

0:04:15worked directly with her she is a

0:04:17wonderful person she's a retired

0:04:20city clerk who came to help us in our

0:04:22time of need when our previous clerk

0:04:24sheryl morse

0:04:25had to suddenly go out on medical leave

0:04:27and so we just want to thank her and

0:04:28acknowledge her excellent efforts

0:04:30throughout the election and kind of

0:04:31keeping us going

0:04:33and lastly when cheryl morris is feeling

0:04:36better we'd love to bring her back here

0:04:37and acknowledge her retirement so let's

0:04:39all keep

0:04:40her in our thoughts as she continues to

0:04:43recover

0:04:45thank you

0:04:46thank you we have communications from

0:04:48the council

0:04:51go ahead paul

0:04:52yes

0:04:55thank you today i with uh with uh mr

0:04:58lyman attended the chamber of commerce

0:05:00uh lunch where

0:05:01karen pinkus gave her maiden speech to

0:05:04the business community in el cerrito it

0:05:06was a great day

0:05:08um

0:05:09last week um the trail trackers had a

0:05:12meeting on fire hazards up on the

0:05:15hillsides which was well attended in our

0:05:17community center

0:05:19and i attended that and one of the

0:05:21themes that was brought up is

0:05:23about being ember aware

0:05:26making sure that embers that might come

0:05:28from any kind of fire we can

0:05:31prepare our homes and be ready for that

0:05:32sort of

0:05:34uh response

0:05:36um

0:05:38council men quinto and i attended a

0:05:41meeting with the league of cities the

0:05:42local

0:05:44elected officials in our east bay area

0:05:47with our new assembly member buffy wicks

0:05:50to talk about her goals and for us to

0:05:52talk about our goals to her fire was a

0:05:55big issue with her a big concern that

0:05:57she had and there's a variety of issues

0:05:59that we'll be working with her together

0:06:01on

0:06:02and in this in this new year i just

0:06:04wanted to say how good it is to have a

0:06:06minimum wage

0:06:07going into effect here and in other

0:06:09cities around the bay area really

0:06:11excited about that

0:06:13and on a lighter note so to speak

0:06:16we still have now another year where we

0:06:18haven't had holiday lights in our el

0:06:21cerrito plaza it's not a big important

0:06:23issue but as far as economic development

0:06:26and making our city

0:06:28our place making for our city

0:06:31i think it's something we need to talk

0:06:32about maybe in our theater district next

0:06:34year we need some lights on those mature

0:06:36trees so i'm going to continue to talk

0:06:38about it

0:06:39we need to celebrate who we are and in

0:06:41the holiday season i think we can all

0:06:42celebrate some lights in el cerrito

0:06:44thank you

0:06:47member yeah in in addition i was going

0:06:49to echo or i will echo mr fideli's

0:06:52comments about the city manager's

0:06:54presentation at the chamber today was

0:06:56it was uh

0:06:58full of sizzle and those that were here

0:07:01you had to be there

0:07:03um however i'm going to do two other

0:07:05announcements i actually don't hope i'm

0:07:07not stealing somebody's thunder

0:07:09martin luther king parade

0:07:11is coming up on

0:07:13next monday

0:07:15i've got the right date yes monday

0:07:17meet here at 8 30 and we'll uh parade up

0:07:19to the high school and uh

0:07:21do the

0:07:23ceremonies at the high school that day

0:07:25and although i can't make it on the

0:07:27preceding day there is a movie at the

0:07:30high school

0:07:31at four o'clock

0:07:33that is

0:07:34um

0:07:35anybody remember the title of it

0:07:38cracking the codes uh so hopefully those

0:07:42two events are ones that you can attend

0:07:44and then my other announcement would be

0:07:46that

0:07:47march is when we renew our

0:07:51terms

0:07:52at the boards and commissions so now is

0:07:55the time for

0:07:56you to cons hopefully consider a

0:07:58boarding commission

0:07:59so that we can start doing uh

0:08:01considering applicants for our boards

0:08:03and commissions

0:08:04so thank you

0:08:05councilmember quinto

0:08:07yes thank you

0:08:10i have the

0:08:11honor of meeting with uh my

0:08:14uh sierra club executive board members

0:08:16which includes uh the chair of the

0:08:18sierra club igor traeger uh the vice

0:08:21mayor

0:08:22excuse me the mayor of

0:08:24albany rochelle nason

0:08:27former mayor norman leforce and myself

0:08:30met with buffy wicks and

0:08:32we did discuss many things including

0:08:36the fire prevention

0:08:38situation so what she is on the budget

0:08:41committee and uh

0:08:43so

0:08:44that is on her list

0:08:46and uh so i look forward in in uh

0:08:48meeting with her more uh regarding that

0:08:51and then uh last week uh

0:08:54along with councilman fideli we did uh

0:08:56attend with

0:08:58the other mayors and council members

0:09:00from the east bay division of the league

0:09:02of cities

0:09:04that was reiterated

0:09:06to get more money for

0:09:08cities

0:09:09to prepare for

0:09:12fire prevention so

0:09:15so she knows that is on the list that

0:09:18all the cities have asked for

0:09:20and i am on the

0:09:22environmental quality committee for the

0:09:24league of cities so uh

0:09:26i'm sure uh all of the mayors and

0:09:28council members there will support that

0:09:31uh to ask the governor uh for more money

0:09:34for fire prevention for cities

0:09:37so

0:09:38with that i'm on the third i attended

0:09:42the beautiful ribbon cutting with uh

0:09:46councilman fideli was there and and

0:09:49council member abelson was there

0:09:52for the grand opening of the richmond

0:09:54ferry

0:09:55boat and

0:09:57that was an important route for many

0:09:59many years i'm glad to have that

0:10:01back and

The City Manager introduced the new City Clerk, and councilmembers reported fire and regional news.

The new clerk, Holly Charléty, came from the Vallejo Flood and Wastewater District, and before that was a deputy city clerk in Sacramento. The City Manager also thanked the acting clerk, a retired clerk who stepped in when the previous clerk went on medical leave.

Fadelli reported the Trail Trekkers' well-attended meeting on hillside fire hazards, with the theme “being ember aware.”

He also reported the City Manager's first speech to the business community at the Chamber lunch, a meeting with Assemblymember Buffy Wicks where fire “was a big issue with her,” the new minimum wage, and his wish for holiday lights at the Plaza.

Lyman announced the Martin Luther King parade and that board and commission terms renew in March; Quinto reported meeting Wicks with Sierra Club leaders about fire prevention funding.

02 Our part of the county's turn captions 200–415

0:10:03it's

0:10:05one of the great things that uh we're

0:10:07putting richmond back on the map and and

0:10:09we're getting uh uh i took a ride on

0:10:11that i was very uh quiet and and smooth

0:10:15and uh i know uh councilman abelson took

0:10:18that right as well so

0:10:20i look forward to having

0:10:23more ferry services and i know here in

0:10:25west county

0:10:26hercules has promised a

0:10:30ferry terminal there as well so

0:10:32hopefully this will alleviate i-80

0:10:35headaches that we all experience every

0:10:37day

0:10:38after that we had the contra costa

0:10:41mayor's conference and i joined

0:10:43mayor pardue okimoto at that event

0:10:47and at that event

0:10:48we did have someone from ccta

0:10:52let us know about

0:10:54what it took

0:10:55and how the community got together

0:10:58to

0:10:59find funding and to secure funding

0:11:02for ferry service in richmond and and i

0:11:04know council member abelson played a

0:11:06huge part in that uh for many many years

0:11:10with that meeting i was also

0:11:13um they uh nominated me and appointed me

0:11:17as vice chair

0:11:19of the contra costa mayor's conference

0:11:21and uh so this is the first uh the last

0:11:24uh council member to have the spot was

0:11:29jane barkey in the early 90s 91 or 92

0:11:33so

0:11:34you know we're finally representing here

0:11:36in west county and i know

0:11:38uh many of us will continue to do the

0:11:40same thing and to join the regional

0:11:42boards that we've been uh

0:11:45cut out of for many many years

0:11:48so

0:11:51i think that's it

0:11:52okay

0:11:54yes what i'd just like to add about uh

0:11:57the ferry service and the funding of it

0:11:59it's actually primarily funded by major

0:12:02j

0:12:04uh which is a half cent sales tax

0:12:07that

0:12:08is paid in throughout contra costa

0:12:11county

0:12:12and um

0:12:14so um

0:12:16it it wasn't so much the community it

0:12:18was it's the whole county

0:12:20that's paying for it but what we were

0:12:22able to do more locally is select the

0:12:26projects that would go into the major

0:12:29and so there were still some of us

0:12:31around who were in fact did participate

0:12:34in that

0:12:35uh decision making in um

0:12:38and so it was really fun to see it come

0:12:41to fruition although

0:12:43i think i got a big sense of just how

0:12:46long these projects can take

0:12:48because

0:12:50at the point we were doing it there were

0:12:52you know where there weren't even

0:12:54uh routes for uh ferries there weren't

0:12:58even agreements that there could be

0:13:00docks you know there all of these things

0:13:02none of this stuff existed

0:13:05and even today not too much of it exists

0:13:09but in

0:13:11richmond

0:13:12today there is a

0:13:14stable

0:13:15ferry service and

0:13:18it runs it'll run

0:13:20and it is running

0:13:22monday through friday

0:13:24for commuter hours

0:13:26and if you get an opportunity i really

0:13:29do recommend that you go over

0:13:31and try it because it really was a great

0:13:33ride and much improved over

0:13:36a ferry service that i've seen

0:13:40previously in other places

0:13:43there's no comparison so it was really

0:13:45very special

0:13:47and it seems like that

0:13:49[Music]

0:13:50the

0:13:51that area is just

0:13:53a magnet i was there again today as was

0:13:57council member

0:14:00quinto and also mayor

0:14:03pardue okimoto and i

0:14:06yeah that and we

0:14:08were privileged with seeing um

0:14:12john joya installed as uh

0:14:15president of the board of supervisors

0:14:17for contra costa county so that was

0:14:20pretty special too because that means

0:14:22our it's our county part of the county's

0:14:25turn to do that

0:14:27and

0:14:28i always feel like well maybe we'll get

0:14:30something extra that way

0:14:32at least i'd like to hope so so that was

0:14:34um

0:14:35really a nice thing to do and and there

0:14:38and they had ferry rides again

0:14:41because during the midday there is no

0:14:43ferry service so they can

0:14:47run the ferry in little trips around

0:14:50just for people who want to try it

0:14:52so it was that was really

0:14:55nice and that's about all i have to

0:14:57report okay

0:15:00so

0:15:01i also attended the contra costa mayor's

0:15:04conference and it was my first time

0:15:06sitting as a voting member and once

0:15:08again congratulations to councilmember

0:15:10quinto a unanimous vote for him as vice

0:15:12chair of the committee

0:15:15while we were there

0:15:16as they had mentioned they talked a lot

0:15:18about the ferry service and i don't want

0:15:20to repeat what they said but

0:15:22in case you weren't aware

0:15:24it will be nine dollars for an adult

0:15:26one way to san francisco

0:15:286.75 if you're a clipper card holder and

0:15:32450 for youth uh disabled

0:15:35persons and seniors so um it looks like

0:15:39it's

0:15:40going to be a great way to get over to

0:15:41san francisco i'd advise everyone to

0:15:43give it a shot

0:15:45they also

0:15:47one of the very interesting things that

0:15:48came up it was on the public comment

0:15:51portion and they were going to give us a

0:15:53more

0:15:54thorough presentation later but um

0:15:59mtc and abag have come together

0:16:03for this committee on housing which i

0:16:05think some of you guys care about in the

0:16:06audience

0:16:08and it's

0:16:10going to

0:16:11share its recommendations

0:16:13on what they think they should do to

0:16:16solve the housing crisis in the greater

0:16:20bay area and beyond

0:16:22and we are going to be getting a bigger

0:16:25presentation on that a future mayor's

0:16:27conference and i believe they will also

0:16:29be giving us a presentation at the east

0:16:32bay league of cities

0:16:35that's upcoming on the 24th so

0:16:37um their preliminary report looked very

0:16:39interesting a lot of things that we're

0:16:41already talking about here in el cerrito

0:16:44plus some more things and so i believe

0:16:46we will be hearing a lot more about this

0:16:48in the future

0:16:50in addition to that um

0:16:54that was uh pretty much

0:16:56the kind of big items that happened

0:16:59one thing i wanted to just also share

0:17:02and i'll pass this to the city cork

0:17:06the sprinkler fitters are in case

0:17:09anybody is looking for employment the

0:17:11spl sprinkler fitters are

0:17:14doing a job search and they would like

0:17:16to have more employees so i will pass

0:17:19this along

0:17:20so that we can include it and make sure

0:17:22that anyone that is out there looking

0:17:23for a job there is a nice union job to

0:17:26be had

0:17:31in addition to my mayor's conference i

0:17:34just went today to the

0:17:36alta bates save ultibate subcommittee

0:17:39and once again the city of berkeley had

0:17:43sent a letter to

0:17:47alt debates

0:17:48and asking them to be very specific

0:17:52about what their retrofitting costs are

0:17:55they've given publicly

0:17:56the reason for the closure as or

0:17:59potential closure as retrofitting cost

0:18:02yet they haven't quoted to anyone what

0:18:04those costs would actually be

0:18:06so the city of berkeley sent them a

0:18:08letter

0:18:09requesting some more hard data so we

0:18:11know exactly what we're working with

0:18:13and i will give you another update about

0:18:15that after our next meeting in march

0:18:21and i believe that is all for my

0:18:24subcommittee

0:18:26reporting

0:18:33so next we will go to oral

0:18:35communications from the public

0:18:38i just wanted to make sure that you

0:18:39reported out a closed session oh okay

0:18:42so um

0:18:44there is nothing to report out of closed

0:18:46session

Council reports continued. Quinto had ridden the new Richmond ferry — “quiet and smooth” — and had been elected vice chair of the county mayors' conference, the first from West County since the early 1990s.

Abelson reported that Supervisor John Gioia had been installed as president of the county Board of Supervisors: “it's our part of the county's turn… maybe we'll get something extra that way.”

She noted the ferry is funded mainly by Measure J, the countywide half-cent transportation sales tax, whose projects were chosen locally.

Hercules had promised a ferry terminal too.

The Mayor reported ferry fares — $9 one way, $6.75 with Clipper — the coming CASA housing recommendations from MTC and ABAG, and Berkeley's letter asking Alta Bates for its actual retrofit costs.

Note

Abelson on Supervisor Gioia becoming county board president: “it's our county part of the county's turn.”

03 A shell mound museum captions 416–640

0:18:50all right so on to oral communications

0:18:53from the public

0:18:55at this time anyone wishing to speak

0:18:57should complete a speaker card and give

0:18:59it to the city court

0:19:01remarks are typically limited to three

0:19:03minutes per person

0:19:05however depending on the number of

0:19:06speakers i may reduce the time limit per

0:19:09speaker please state your name and city

0:19:12of residence for the record

0:19:14comments regarding non-agenda items and

0:19:16consent calendar items will be heard

0:19:19first

0:19:20comments related to presentations public

0:19:22hearings and policy items will be heard

0:19:25at the time

0:19:26the city council deliberates on each of

0:19:28these items

0:19:31will the city clerk please call the

0:19:33speakers

0:19:34we have about 10 speakers for

0:19:37either the consent calendar or matters

0:19:38not on the agenda the first three

0:19:40speakers are james joseph de la berto

0:19:44nick

0:19:45zamarona

0:19:47and paul duncan

0:19:49all right go ahead

0:19:54first first of all thanks to the

0:19:56council and the staff for their service

0:19:58del cerrito

0:20:00i'm here to make a premature

0:20:01announcement that i'm establishing a

0:20:04small free open-air public museum on my

0:20:06property to protect what seems to be an

0:20:09important coast to know and

0:20:11heritage site

0:20:12and

0:20:13i'm making a premature announcement

0:20:15because before i get things going very

0:20:17much i would like to get the ohlone

0:20:18involved and i've over the years i've

0:20:21had a heart i've been unsuccessful to

0:20:23this point in getting them in touch with

0:20:25them and so if anybody in the

0:20:27staff or the city or in fact in the

0:20:29audience has anything has any way to get

0:20:32me in direct contact with somebody from

0:20:33the illinois side very much appreciate

0:20:35it

0:20:36since i can't go into all of it it's a

0:20:38very

0:20:40long story i thought at least i might do

0:20:42is to end

0:20:44with a

0:20:46quick show-and-tell of the thing that

0:20:47got me interested in this in the first

0:20:49place

0:20:50and because of the fire district i had

0:20:51to clear our backyard and i decided not

0:20:54to hit this with my pickaxe and this

0:20:58i didn't know what it was so i took it

0:20:59to cal this is a

0:21:01wonderful specimen of what's called a

0:21:03bacolite it's about 67 million years old

0:21:06if you believe in that sort of thing

0:21:08and

0:21:09the plains indians apparently covet this

0:21:12as a sign of the buffalo spirit

0:21:15however and of course the maloney here

0:21:17traded salt and shell with other peoples

0:21:20but this by itself is an interesting

0:21:22story because not only is it perhaps one

0:21:24of the finest examples you've ever seen

0:21:27but it's also apparently been worked and

0:21:29apparently has served as a tool and i'm

0:21:31sort of guessing it might have been used

0:21:32to stamp lentils of salt for trade

0:21:36and perhaps most important and most

0:21:38interesting about this is

0:21:40when it was first told when i first

0:21:41showed this to cal they said it was

0:21:43perhaps from redlands but when i saw the

0:21:45field expert this last cal day he was

0:21:48sure where it came from and this came

0:21:49from the pierre shale deposit in south

0:21:52dakota so apparently it just goes to

0:21:54show something about the tribe that we

0:21:56had that was in charge or a clan we had

0:21:58that was in charge of the largest shell

0:22:00mound and the largest complex of shell

0:22:02mounds was that they were able to trade

0:22:05across the united states

0:22:07probably before lewis and clark came out

0:22:09with their um

0:22:11uh there uh what is it um

0:22:15uh a core of discovery that's right so

0:22:17um

0:22:18there'll be more about this if anybody

0:22:20can get me in touch with the olonis i'd

0:22:21very much appreciate it if the city

0:22:23would like to hear much more about this

0:22:24i've certainly got more and we've got i

0:22:26mean this is not the most important

0:22:28thing we've found there's there's much

0:22:29more important things than this and we'd

0:22:31very much be happy to come back and talk

0:22:32about it but anyway i think el cerritos

0:22:34got a feather in its cap thank you thank

0:22:36you

0:22:43good evening nick samurano resident of

0:22:45el cerrito i'm here tonight to talk

0:22:47about trees

0:22:49in relationship to fire's

0:22:51danger and hazards to human life and

0:22:54personal property

0:22:57first of all hazards for humans in

0:22:59regards to eucalyptus trees and fire

0:23:01hazards the two most common hazards of

0:23:03eucalyptus species to people are fire

0:23:06and falling branches eucalyptus oil is

0:23:09highly flammable it ignites trees have

0:23:12been known to explode

0:23:14bush fires can travel easily through the

0:23:16oil rich era of the tree crowns

0:23:18almost 30 years before the oakland

0:23:20firestorm in 1991 a study of eucalyptus

0:23:23in the area warned that the litter

0:23:25beneath the tree builds up very rapidly

0:23:28and should be regularly monitored and

0:23:29removed

0:23:31it has been estimated 70 percent

0:23:33of the energy released through the

0:23:35combustion of vegetation the oakland

0:23:37fire was due to eucalyptus

0:23:42now on january 6 there was an incident

0:23:45where a look at eucalyptus tree reaching

0:23:47a height of 250 feet fell

0:23:51and killed the man in his car on gili

0:23:53road in front of the greek theater on

0:23:54the uc berkeley campus

0:23:57the results of negation is underway uc

0:24:00berkeley is conducting their

0:24:01investigation as to what caused it

0:24:04certainly there was

0:24:06damage due to the high winds

0:24:08i think that day was 50 to 60 miles per

0:24:11hour

0:24:13and

0:24:14the rain was severe

0:24:16and

0:24:17perhaps there's other factors involved

0:24:19and one of the things that they're

0:24:20looking at is how often that the uc

0:24:22arborist inspected those trees

0:24:25and in regards to the condition to

0:24:27disease and truth

0:24:29root removal

0:24:31in fact there's some um

0:24:33discussion about whether the

0:24:35construction that was centered around

0:24:36the greek theater may have caused it

0:24:39there was a certain arborist from the

0:24:42bartlett tree experts and a berkeley

0:24:44resident

0:24:45that said that the reality is that trees

0:24:47don't always give clues as to their

0:24:48inner health

0:24:51the state's recent drought was a major

0:24:53stressor for this uh trees falling and

0:24:56the heavy rains can also create problems

0:24:58there are a lot of hidden factors a lot

0:25:00of conditions within trees and below the

0:25:02ground we just can't see when it comes

0:25:04right down to it trees are complex

0:25:05organisms and they respond in ways we

0:25:07don't fully understand now we all know

0:25:09and we can all agree that trees are

0:25:11beautiful and they probably provide a

0:25:12lot of benefit but they also can be

0:25:14hazardous to

0:25:16personal life and personal property and

0:25:18as you look around el cerrito there's a

0:25:21ton of eucalyptus groves there's also

0:25:23other trees that are dangerous

0:25:25in our own properties and in our

0:25:27neighbor's property surrounding our

0:25:28homes and if you look over there on

0:25:30mosher and sea view there's a big

0:25:33eucalyptus tree that's leaning over and

0:25:35looks like it's going to fall right on

0:25:36moser lane there's also a grove of trees

0:25:39over on

0:25:41brewster and arlington and every time

0:25:44you have to

0:25:45you pass down that street you have to

0:25:46move to the center of the lane to avoid

0:25:48hitting the branches that are

0:25:51falling over on onto the street so i

0:25:53just want to make people aware of that

0:25:55and i'd like to leave this with the city

0:25:57council members for your reviews and the

0:25:59pictures

0:26:01thank you

0:26:03thank you

0:26:04next speaker is paul duncan

0:26:11good evening my name is paul duncan i

0:26:13live on king drive near king court

0:26:16back in september i made an appeal to

0:26:18you to start doing something to mitigate

0:26:20the extreme fire risk existing in the

0:26:22eucalyptus groves and hillside nature

0:26:24area

0:26:25thick stands of huge trees with abundant

0:26:27fuel ladders up to the crowns are too

0:26:29risky to maintain in an urban area

0:26:32not long after that september meeting we

0:26:34all watched in horror as the town of

0:26:35paradise was destroyed and 86 people

0:26:38lost their lives back in 91 we saw it

0:26:41happen again in the oakland hills we

0:26:43want to keep something like that from

0:26:44happening in el cerrito

0:26:47in order to advance this goal many of

Public comment opened with archaeology and eucalyptus.

A resident announced a small open-air museum on his property to protect “an important Coast… heritage site” — a shell mound artifact traced to South Dakota shale, evidence of long-distance trade.

He asked to be put in touch with Ohlone representatives.

Nick Samarano on eucalyptus: “eucalyptus oil is highly flammable… trees have been known to explode,” and an estimated “70 percent of the energy released” in the 1991 Oakland fire came from eucalyptus.

He cited the 6 January fall of a eucalyptus that killed a man in his car near the Greek Theater at UC Berkeley, then under investigation, and leaning trees on Moeser at Sea View and at Brewster and Arlington.

Paul Duncan said about 30 neighbors had formed Make El Cerrito Fire Safe, to reduce fire risk in the Hillside Natural Area and press for marked evacuation routes.

Note

A resident asks for help reaching Ohlone representatives about artifacts on his property; a fire-safety speaker cites an estimate that 70 percent of the energy released in the 1991 Oakland fire came from eucalyptus.

04 We have nothing like that captions 641–899

0:26:49our neighbors 30 so far have banded

0:26:52together we have had several meetings

0:26:54and for one thing decided to name our

0:26:56group we will be known as make el

0:26:58cerrito fire safe

0:27:00our goals and objectives are mitigating

0:27:02the fire risk in hna and to advocate for

0:27:05the establishment of clearly designated

0:27:07and marked safe evacuation routes within

0:27:10the city and surrounding areas

0:27:12members of our group will be contacting

0:27:14each city council member individually in

0:27:17an attempt to involve them in mutual

0:27:19efforts to establish a specific action

0:27:21plan

0:27:23also

0:27:24isn't it about time to put this topic on

0:27:26a future agenda

0:27:29we are glad to see a little progress

0:27:31toward the goal with the fire department

0:27:33burning a few slash piles gathered by

0:27:35the contractor

0:27:36a couple of isolated dangerous trees

0:27:38have been removed the fuel ladder is

0:27:40still there it's very scary to look at

0:27:42the steep slope above the recycling

0:27:44center thick with explosively flammable

0:27:47eucalyptus trees leading right up to the

0:27:50corey grove

0:27:51much more work is needed

0:27:54back in september i stood here and

0:27:55requested that a city council liaison be

0:27:58assigned to work with our group

0:28:00that didn't happen i know that city

0:28:02council members are assigned to be

0:28:04liaisons to city commissions does it

0:28:06make sense to have one city council

0:28:08member with whom we can communicate back

0:28:10and forth

0:28:12it seems to me that would expedite the

0:28:14flow of information so that we can work

0:28:16together more efficiently toward the

0:28:18common goal of making el cerrito safe

0:28:20from deadly and destructive wildfires

0:28:23in summary

0:28:25let's continue to push forward to make

0:28:27el cerrito fire safe

0:28:29thank you thank you

0:28:31the next speaker is marlene george

0:28:33followed by gary prost and susan duncan

0:28:39good evening

0:28:40my name is marlene george and i reside

0:28:43in el cerrito and i'm one of the 30

0:28:45individuals who is a member of make el

0:28:49cerrito fire safe

0:28:52related to that

0:28:54at the last urban forest

0:28:57committee meeting

0:28:59there were a dozen or so of us community

0:29:01residents who attended that meeting

0:29:04and we

0:29:06asked to give input in fact we did give

0:29:08input into the draft ordinance

0:29:10of the city council that's amending the

0:29:13chapter

0:29:1413.28 of the municipal code regarding

0:29:17trees and shrubs

0:29:20we were

0:29:21asking

0:29:22the committee

0:29:23to

0:29:25look at the language that declares

0:29:28trees

0:29:30not only declares but a finding and a

0:29:33declaration

0:29:35that

0:29:36trees are a natural resource

0:29:39and a thing of beauty

0:29:42and that we would like language to be

0:29:44included that they also potentially

0:29:48pose a risk to life and personal

0:29:51property and i think that it's pretty

0:29:53self-explanatory

0:29:56why we would like to see that included

0:30:00also the city has a prohibited tree list

0:30:04and i don't know if that's an ordinance

0:30:06we couldn't really get clarification at

0:30:08that meeting but there is a list of i

0:30:11think it's five trees that are

0:30:13prohibited in el cerrito

0:30:15and we could not find

0:30:17what the significance of that is in

0:30:20terms of policy or ordinance what what

0:30:22is the city staff

0:30:24or the community supposed to do with

0:30:26that list

0:30:27so we're we're asking that

0:30:30this list of trees being included in the

0:30:32ordinance and that the city through this

0:30:35uh new amendment

0:30:38specify what we want done with this

0:30:40prohibited list

0:30:42[Music]

0:30:44the committee i only have one second the

0:30:46committee voted to delay the approval

0:30:49and we will be working collaboratively

0:30:51with the committee regarding the final

0:30:54language in this amendment

0:30:56and i will my assignment is to be

0:30:59reaching out to councilwoman abelson

0:31:02to talk to her about fire prevention and

0:31:04i look forward to meeting with you

0:31:05individually thank you

0:31:08thank you

0:31:09next speaker is gary prost

0:31:13good evening i'm gary prost el cerrito

0:31:16i'd like to bring to your attention

0:31:18what a few other cities are doing

0:31:20regarding fire safety

0:31:23red flag warnings and evacuation routes

0:31:27los angeles and santa barbara have red

0:31:29flag warnings and they enforce very

0:31:32strict rules about street parking

0:31:35berkeley

0:31:36fire department has a document called

0:31:39wildfire evacuation plan

0:31:42it specifies evacuation routes

0:31:45we have nothing like that we have no

0:31:47evacuation routes even though we have

0:31:50red flag warning days

0:31:52there's such thing as brush fire

0:31:54clearance zones in los angeles county

0:31:58where

0:31:59private properties are required to clear

0:32:01brush

0:32:02especially along roads a minimum of 10

0:32:05feet for all flammable vegetation we

0:32:08have nothing like that

0:32:10in 2003 the city of kelowna in british

0:32:13columbia

0:32:14had a devastating fire

0:32:16that burned right up to the outskirts of

0:32:18town 27 000 residents were evacuated and

0:32:22237 homes burned after that they enacted

0:32:26a strict community wildfire protection

0:32:29plan

0:32:30that includes among other things

0:32:32community education programs

0:32:35identification of critical

0:32:36infrastructure water sources backup

0:32:38power

0:32:39annual training for first responders

0:32:42emergency evacuation plans

0:32:44exterior building materials standards

0:32:48and ordinance mandating vegetation

0:32:50spacing and clearance on private

0:32:52property

0:32:53roadside mowing

0:32:54prescribed burns grazing programs and

0:32:58monitoring and maintenance

0:33:00we have nothing like that as far as i'm

0:33:02aware

0:33:04i would encourage city council to meet

0:33:06with your counterparts in berkeley

0:33:08richmond oakland

0:33:10and the councils of santa rosa and

0:33:13paradise if you haven't already done so

0:33:16and then report back to us the citizens

0:33:19of el cerrito on lessons learned thank

0:33:21you

0:33:22thank you next speaker is susan duncan

0:33:32good evening susan duncan el cerrito the

0:33:35ellie times ran a story on december 30th

0:33:38about the campfire entitled here's how

0:33:40paradise ignored warnings and became a

0:33:43death trap i've left copies of it for

0:33:45all of you in case you haven't read it

0:33:47yet

0:33:48there are several takeaways from this

0:33:50story

0:33:51that the el cerrito and surrounding

0:33:53communities need to act on immediately

0:33:56one paradise ignored warnings especially

0:33:58regarding the dangerous east winds which

0:34:01we also have known as the diablo winds

0:34:03and two

0:34:04they had an evacuation plan

0:34:06but didn't

0:34:08plan on or practice for their worst case

0:34:10scenario because they thought that the

0:34:12fire would always stop at the city

0:34:14limits as it had in the past

0:34:17the story states quote in truth the

0:34:19destruction was utterly predictable

0:34:22the community's struggles to deal with

0:34:24the fire were the results of lessons

0:34:26forgotten and warnings ignored has el

0:34:29cerrito forgotten the oakland berkeley

0:34:31hills firestorm

0:34:33is it ignoring warnings and not

0:34:35eliminating fire hazards such as ladder

0:34:37fuel to create an ember storm in the

0:34:40eucalyptus crowns

0:34:43their greatest risk was an east wind

0:34:45fire quote the same type of fire that

0:34:50impacted the oakland berkeley hills in

0:34:52october 1991

0:34:54the california department of forestry

0:34:56and fire protection wrote in 2005 quote

0:35:00the greatest threat to the ridge

0:35:02communities is an from an east wind

0:35:04driven fire that originates above the

0:35:06communities and blows downhill through

0:35:08developed areas

0:35:10we have those east winds once again the

0:35:12diablo winds they blow in october our

0:35:15driest time of the year before the rains

0:35:17start

0:35:18it is past time for el cerrito to act

0:35:21and to begin thinning and reducing the

0:35:23great fire hazards that exist in the

0:35:25eucalyptus groves it is past time for el

0:35:27cerrito to work with surrounding

0:35:29communities to develop sign and practice

0:35:32evacuation routes for the worst case

0:35:34scenarios a firestorm

0:35:36el cerrito

0:35:38should obtain the traffic sim simulation

0:35:40software referenced in the article that

0:35:42fema puts out

0:35:46paradise is but another warning heed it

0:35:48and start working now thank you

0:35:51thank you

0:35:53as the next speaker is scott perry

0:35:55followed by dave weinstein and sherry

0:35:58dropner

0:36:04scott perry el cerrito

0:36:07before i start my comments i too was at

0:36:10the trekkers meeting and and thought

0:36:12that

0:36:13it was an outstanding meeting and

0:36:16their guest

0:36:17sheryl miller

0:36:18rocked

0:36:19she really presented

0:36:21some great information in a very concise

0:36:24way

0:36:24along with david gibson from

0:36:27el cerrito as well

0:36:29i'm here to speak to you also

0:36:33about fire safety in el cerrito and and

0:36:36my comments are going to be directed

0:36:37towards

0:36:39el cerrito's need and so far lack of

0:36:42evacuation routes

0:36:47i think that

0:36:51very simply put el cerrito needs to have

0:36:54marked evacuation routes

0:36:56we need strict vegetation restrictions

Fire safety speakers compared El Cerrito with cities that had evacuation plans.

Marlene George reported that residents had asked the Urban Forest Committee, in its draft tree ordinance, for language declaring trees “a natural resource and a thing of beauty.”

The slope above the recycling center was “thick with explosively flammable eucalyptus trees,” with fuel ladders still in place despite a few slash piles burned.

The comparison: Los Angeles and Santa Barbara enforce strict red flag parking rules, and “Berkeley fire department has a document called wildfire evacuation plan… we have nothing like that. We have no evacuation routes.”

The threat: “an east wind driven fire that originates above the communities and blows downhill.”

“It is past time for El Cerrito to act.”

Gary Prost and Susan Duncan both asked the Council to act; Scott Perry followed on evacuation routes.

Significant

A resident compares El Cerrito with Berkeley, whose fire department has a wildfire evacuation plan: “we have nothing like that we have no evacuation routes.”

05 Through the cemetery captions 900–1146

0:36:59on those routes

0:37:00we need parking on those routes

0:37:04to be

0:37:05no parking situations for red flag days

0:37:08and additionally on red flag days

0:37:12uh in an evacuation scenario i think

0:37:15that there needs to be some cooperation

0:37:17with

0:37:18sunset cemetery

0:37:20to

0:37:20access for people who live on franciscan

0:37:23and sunset and highgate and people from

0:37:26kensington coming down arlington to have

0:37:29access to fairmont avenue in a quick way

0:37:33and likewise some arrangement should be

0:37:36made with the golf course for people who

0:37:38live on the east side of the golf course

0:37:40as well so they can quickly access

0:37:43arlington

0:37:44get to barrett or portrayal or whatever

0:37:47the evacuation would be and i hope that

0:37:50the city would would work with your

0:37:52engineers to pick

0:37:54routes that are going to work out the

0:37:56best for people in these areas

0:38:01many communities that have wildland

0:38:03interface

0:38:05have evacuation routes and el cerrito

0:38:07does not

0:38:10we need clearly marked routes and

0:38:13i would suggest maybe to have

0:38:16routes that were marked most of the

0:38:18streets in the hill area have a fog line

0:38:20painted we could have a duplicate fog

0:38:23line

0:38:24something in a specific color that would

0:38:26indicate to a driver that this is the

0:38:28route out it's not only effective at

0:38:31night but during the day in a

0:38:33catastrophic situation

0:38:35there'll be so much smoke that it will

0:38:37be dark the sun will be blocked by the

0:38:39smoke

0:38:40so it needs to be reflective and i think

0:38:42that would be

0:38:43a low visual visible

0:38:47asset to have

0:38:49another idea is to have the reflector

0:38:52box dots that the fire department uses

0:38:54to mark where hydrants are we can have

0:38:57those placed periodically it's low

0:38:59impact be an easy solution it would be a

0:39:02focus for for drivers trying to get out

0:39:05small signs added to existing signs

0:39:08please summarize little little placards

0:39:10that would indicate an exit

0:39:13um and then the end of the route needs

0:39:16to have muster points

0:39:17which which

0:39:19is going to be important a very

0:39:21important

0:39:22comment i want to make is that of all

0:39:24the bay area cities el cerrito has the

0:39:26shortest distance from ridge top to

0:39:29shoreline

0:39:30so whatever happens is going to happen

0:39:32in a compressed zone not like richmond

0:39:34not like albany berkeley oakland it is

0:39:36very compressed so evacuations are going

0:39:38to be congested the fire is going to

0:39:41travel faster in our area

0:39:43and it's going to be

0:39:46a disaster

0:39:47waiting to happen

0:39:49thank you for the chance to make

0:39:50comments

0:39:51thank you

0:39:52next speaker is david weinstein

0:39:59mayor and council i'm dave weinstein

0:40:00president of el cerrito trail trekkers

0:40:02at the start of every year i like to

0:40:04come here and talk about our

0:40:06accomplishments and our goals so i've

0:40:08handed out a paper to you all and you

0:40:09can read it it'll be posted on our

0:40:11website i do want to focus also as

0:40:14people are talking about fire safety

0:40:16trekkers is going to make that one of

0:40:17our themes in 2019 we began the year a

0:40:20few days ago by doing a very good

0:40:22program

0:40:23about fire safety we're planning to do

0:40:25several hikes

0:40:27with people from the fire department

0:40:29both talking about how homeowners can do

0:40:31things

0:40:32to get better defensible space part of

0:40:34the hillside natural festival may 3-5

0:40:38will have

0:40:39a walk-through with the fire marshal

0:40:41talking about what the city does

0:40:43maybe he does not do about making the

0:40:45hillside safe so he should be some

0:40:47really good things

0:40:49as you know we've been from the

0:40:50beginning advocating for trails there

0:40:53are many urban trails throughout the

0:40:55city that have been blocked over the

0:40:58years or sometimes never used we began

0:41:01by kind of copying what berkeley

0:41:02pathwanders does

0:41:04and without thinking too much about it

0:41:06their model is for the volunteers to

0:41:09gradually improve those trails over

0:41:11years we're a much smaller city than

0:41:14berkeley it'll take us 30 years to

0:41:16improve all those trails so we get a

0:41:18sudden brainstorm

0:41:21some of these trails because we have

0:41:23streets that go like that and like that

0:41:24like that the trails go straight down

0:41:27but they're not passable what if the

0:41:29city council were to hire people to make

0:41:31these trails passable they will make

0:41:33really good

0:41:34routes

0:41:36for escape

0:41:38other things i want to mention about

0:41:39trail trackers we are still monitoring

0:41:41the fairview open space we really want

0:41:43that to remain in open space we gave 20

0:41:46hikes this year

0:41:48which really was a lot of fun and gets

0:41:50people out walking we're working with

0:41:52the rotary club to install an

0:41:54interpreter trail thanks to rory thanks

0:41:56to the rory club for their funding

0:41:58there's been some delay with

0:42:00establishing the various waymarking

0:42:03signs in the hillside area i think

0:42:06because the city's rec department was so

0:42:08involved with the park master plan

0:42:10trekkers played a big role in that plan

0:42:12because when they started working on it

0:42:14they totally ignored any of the urban

0:42:16trails we made sure they got counted so

0:42:18anyhow we continue as we enter our ninth

0:42:21year to do a lot of work that we think

0:42:23is to the benefit of el cerrito speaking

0:42:26of fire stuff we're working a lot with

0:42:28the eqc and with several schools

0:42:30including the montessori school to

0:42:32remove a lot of the french broom that so

0:42:35litters up the hillside area and again

0:42:37is

0:42:38very flammable

0:42:40so thank you

0:42:42for working with trail trackers open

0:42:44space trails trees are really valuable

0:42:48they're dangerous sure but we don't want

0:42:50to get rid of them so uh

0:42:52here's to a fulfilling year

0:42:55next speaker is sheri dropner followed

0:42:57by

0:42:59robin mitchell

0:43:01hi good evening city council mayor well

0:43:04first i wasn't planning to say anything

0:43:05but i just want to say i really

0:43:07appreciate

0:43:08all the residents who are working on

0:43:10fire safety i'm really impressed with

0:43:13how organized you've become and your

0:43:14ideas and and i do hope that the city

0:43:17council will put this on the agenda for

0:43:18further discussion and proposals and

0:43:20action it's really important and i don't

0:43:23live up in the hills but i feel like it

0:43:25benefits the entire community

0:43:27but what i really wanted to come here to

0:43:29say tonight was a real thank you

0:43:31to the fire chief and the paramedics and

0:43:33to all the people on the city council

0:43:35who so

0:43:37graciously offered support and help when

0:43:39on the december 18th meeting

0:43:41my husband was standing back there and

0:43:44apparently had it i was having a stroke

0:43:47and the um the great um

0:43:50support from the

0:43:53fire marshal the fire chief i'm sorry

0:43:55and the paramedics it was so timely they

0:43:58got him

0:43:59in the ambulance and to the hospital in

0:44:02a in a very short amount of time which

0:44:04is so critical

0:44:05in that period

0:44:07as first responders it was just so

0:44:09important and i really felt the

0:44:11community

0:44:12caring from all of you it was really

0:44:14really

0:44:16it really helped and to top it off his

0:44:19car was parked here

0:44:20for a number of days because we had

0:44:22driven separately to the meeting and i

0:44:24had called over to the police asking

0:44:25them not to tow it

0:44:27until i had an opportunity to get it and

0:44:29they said oh don't worry about it and

0:44:31when i did go to pick up the car a

0:44:33lovely woman from code enforcement and i

0:44:35believe her name was katie or kate

0:44:37came out and gave me a big hug and a and

0:44:40said you need a cup of coffee and a gift

0:44:43card to starbucks

0:44:45right

0:44:46so that's really how beautiful this

0:44:48community can be so i just wanted to

0:44:50thank you publicly

0:44:53thank you

0:44:55the next speaker is robin mitchell

0:44:59my name is robin mitchell i live in el

0:45:00cerrito and i just wanted to reiterate

0:45:04what people were saying about the trail

0:45:06trekkers presentation

0:45:08about fire safety it was a really

0:45:10excellent presentation by the woman from

0:45:12the diablo fire safe council and i think

0:45:14the city really needs to have those

0:45:16presentations as a standard fare i think

0:45:20you need to you should

0:45:22make the her available

0:45:25in presentations like that several times

0:45:27a year especially since everybody is so

0:45:30worried about what's going on you know

0:45:32what to do she talked a lot about

0:45:34how to make your vegetation safe how to

0:45:37things to do to your house and it was a

0:45:39lot of really practical information a

0:45:41lot of information about how fires

0:45:43you know sort of fire behavior and i

0:45:45really encourage the city to engage her

0:45:48to have those kind of presentations

0:45:50several times a year for the public

0:45:58all thanks that concludes the speaker

0:46:01cards i have at this time okay thank you

0:46:04and let's see

Scott Perry proposed practical evacuation measures.

Red flag days: “we need parking on those routes to be no parking.”

And unusual exits: cooperation with Sunset Cemetery so residents of Franciscan, Sunset and Highgate — and Kensington residents on Arlington — could reach Fairmont quickly, and an arrangement with the golf course for those on its east side.

He suggested marking routes with a colored fog line and reflectors, with muster points at the end, noting that El Cerrito has “the shortest distance from ridge top to shoreline” of Bay Area cities.

Dave Weinstein of the Trail Trekkers described volunteers reopening blocked urban paths, modeled on Berkeley Path Wanderers.

He suggested the city pay to make the blocked paths passable: “they will make really good routes for escape.”

Sherry Drobner thanked the fire chief, paramedics and a code enforcement officer for their help when her husband had a stroke at the December meeting.

Robin Mitchell asked the city to bring the Diablo Fire Safe Council's presenter back several times a year.

Significant

A resident proposes evacuation through Sunset Cemetery and the golf course, no parking on routes during red flag days, and marked routes with muster points.

06 Hold the December ordinances captions 1147–1549

0:46:09that will go to the adoption of the

0:46:11consent calendar

0:46:16a we have minutes b transportation

0:46:19impact fee program

0:46:21c municipal pooling authority board

0:46:23members d successor agency

0:46:26recognized obligation payment schedule

0:46:29do i have a motion

0:46:32i'll move

0:46:34the passing of those four items second

0:46:40mayor pro tem has a first mayor pretend

0:46:42lyman and council member abelson is

0:46:45seconded

0:46:46all in favor aye

0:46:48as opposed

0:46:50motion passes

0:46:53all right so presentations none

0:46:57policy matters now we are on to the

0:46:59tenant protection ordinances

0:47:02i have uh the staff

0:47:05presentation

0:47:08i'm actually going to be doing the staff

0:47:10report this evening uh but melanie mintz

0:47:12your community development director and

0:47:14aisa shuri your affordable housing

0:47:16analyst are both here to address any

0:47:18questions

0:47:19um as the council will recall at your

0:47:21december 18th meeting you considered

0:47:23four ordinances that would provide

0:47:26additional protections to tenants of

0:47:27residential properties

0:47:29those were

0:47:30an ordinance to provide some review of

0:47:33rents

0:47:34an ordinance to set minimum lease terms

0:47:37an ordinance to regulate the termination

0:47:39of tenancies and an ordinance to provide

0:47:41relocation assistance to some tenants

0:47:43who are displaced as a result of actions

0:47:46defined in the ordinance

0:47:48after

0:47:50receiving public comments and

0:47:51deliberation the council introduced all

0:47:54of those ordinances except the rent

0:47:55review ordinance um including some

0:47:57amendments

0:47:59among the amendments was the addition

0:48:02of

0:48:03another circumstance that would qualify

0:48:05for relocation assistance which was when

0:48:07combined rent increases

0:48:09exceeded 20 percent over 24 months

0:48:12normally we would just be back here in

0:48:14front of you with the amended ordinances

0:48:16for adoption

0:48:18and in this case the three ordinances

0:48:20that the council introduced including

0:48:21those amendments have been brought back

0:48:23um and they are available for the city

0:48:25council to take action on them tonight

0:48:28um but for the reasons that i'm going to

0:48:29explain um the staff is recommending

0:48:31that you defer action right now

0:48:34in order to

0:48:35provide some additional time to

0:48:38review them and integrate them in light

0:48:41of some additional direction that the

0:48:42city council gave

0:48:44and that additional direction was

0:48:46to the staff to

0:48:48begin the process of developing a just

0:48:50cause eviction ordinance and an

0:48:52ordinance to enable the collection of

0:48:54data about residential rents which we've

0:48:56been referring to as a rent registry

0:48:57ordinance

0:48:58um

0:48:59so when after the meeting um the staff

0:49:02in my office um discussed the amendments

0:49:05that the council had made and the

0:49:07additional direction

0:49:09and

0:49:10came up and ultimately decided that

0:49:14we thought that the best course of

0:49:16action was to spend a little bit more

0:49:18time on the entire package of ordinances

0:49:21and request that you defer action for

0:49:23the time being on the three ordinances

0:49:25that you've already considered

0:49:28one of the major considerations that we

0:49:30took into account in making that

0:49:31recommendation is that um the package of

0:49:34ordinances that was brought to the

0:49:35council in december

0:49:37they all interrelated and were intended

0:49:39to work together

0:49:42and the just cause eviction ordinance

0:49:44and the rent registry ordinance that

0:49:46you've directed staff to work on would

0:49:48also need to work together um in a

0:49:51compatible form

0:49:52in a in a compatible manner with those

0:49:54other three ordinances

0:49:56um

0:49:58it may be that the ordinances that you

0:50:00already considered would require some

0:50:02changes

0:50:03to work with the other two ordinances

0:50:07or that we would have we would realize

0:50:09that portions of them were no longer

0:50:10necessary as a result of some of the

0:50:12policies that the council might cons

0:50:15might consider as part of just cause

0:50:16eviction or or a rent registry

0:50:19so

0:50:20as a result of that we thought that it

0:50:21would be both better in terms of policy

0:50:24making

0:50:24and more efficient to

0:50:26revise the three ordinances that you had

0:50:28already considered

0:50:30once you had given some direction about

0:50:32the just cause eviction and rent

0:50:33registry ordinances

0:50:35at present we don't know what the

0:50:37details of either of those two new

0:50:38ordinances would be

0:50:40so we don't really know what the whole

0:50:41package will look like

0:50:44and then finally if the city we

0:50:48we considered and talked a lot about and

0:50:50ultimately concluded that if the council

0:50:52proceeds to adopt the three ordinances

0:50:54that you've already considered

0:50:57there the staff is going to begin fairly

0:50:59promptly to um

0:51:01to

0:51:02figure out how to implement them based

0:51:04on plans that have already been

0:51:05developed

0:51:07there will be notices sent there will be

0:51:08communications with the public

0:51:10there will basically be a significant

0:51:12expenditure of staff resources directed

0:51:15at communicating out with the public

0:51:17about those three ordinances both

0:51:18tenants and and landlords

0:51:21if the council ultimately moves forward

0:51:24with

0:51:25the just cause eviction and rent

0:51:27registry ordinances and changes need to

0:51:29be made to the ordinances that you

0:51:30already considered there's going to be

0:51:32an entirely new set of communications an

0:51:33entirely new set of implementation

0:51:35measures

0:51:36and we were concerned both with

0:51:38conserving staff resources to implement

0:51:40an entire package of

0:51:43ordinances that regulate this area and

0:51:45also with

0:51:47not

0:51:47confusing both tenants and landlords

0:51:50about what the city's policies are

0:51:52so as a result of that we came forward

0:51:54with the recommendation that's in front

0:51:55of you tonight which is to defer action

0:51:58um there are three points that are

0:52:00listed in the staff report that are that

0:52:01are the totality of the motion that we

0:52:03would recommend

0:52:05and staff is anticipating at this time

0:52:07holding a study session with the city

0:52:08council and the public at the february

0:52:1019th meeting

0:52:12to provide some additional explanation

0:52:14about what what the legal constraints

0:52:16are on just cause eviction and rent

0:52:19registry ordinances what some examples

0:52:21are and to get some direction hear from

0:52:23the public and get some direction from

0:52:24the council about

0:52:26what form of an ordinance you would like

0:52:27to see

0:52:29as part of that given that there is

0:52:31significant public interest in the topic

0:52:34and that the just cause eviction

0:52:36ordinance and rent registry ordinances

0:52:38would have

0:52:39potentially broader

0:52:41application than the ones that you'd

0:52:42already considered staff intends to do

0:52:45some form of city-wide noticing about

0:52:46the study session to ensure that

0:52:48everybody has an opportunity to know

0:52:50about it and come and speak if they have

0:52:51an interest

0:52:53as i noted

0:52:54the three ordinances that the council

0:52:56introduced including the amendments at

0:52:58the december 18th meeting are in front

0:52:59of you

0:53:01it is an option for you to wave the

0:53:03second reading beyond the title and

0:53:05adopt those ordinances in the form that

0:53:07that are included in the agenda packet

0:53:09but staff's recommendation at this time

0:53:11as written in the agenda and the staff

0:53:13report is to to by motion defer action

0:53:16on those and the the components of that

0:53:18recommendation are spelled out in those

0:53:20documents um as i said um i'm available

0:53:23for questions and so are melanie and isa

0:53:25that concludes the report

0:53:28questions from the council

0:53:33council member fidelity

0:53:36um yeah

0:53:38so at the

0:53:40your proposal and and and there was some

0:53:42confusion from the last uh city council

0:53:45meeting um

0:53:47i'm happy to see some of the bigger

0:53:48issues the registry and the just cause

0:53:51discussed um

0:53:53and

0:53:54i think some in our community believe an

0:53:56ordinance might have been drafted to

0:53:59come back to us at that next meeting

0:54:01and some believe that it's a workshop

0:54:04you're saying now it's a workshop

0:54:06i'm saying that the direction that we

0:54:07understood was to

0:54:10follow the city's normal policy

0:54:12preparation practice which is to gather

0:54:15information

0:54:16to come back to the city council with

0:54:19the information that's been gathered and

0:54:21get feedback from the council and the

0:54:22public about the components of a new

0:54:24policy

0:54:25to take that direction and to draft an

0:54:28ordinance to come back to the council we

0:54:30do understand from the council that

0:54:31there is an interest in taking action

0:54:34on an accelerated basis but we wanted to

0:54:37make sure that we followed the practices

0:54:38that had been established and that's why

0:54:40we're coming back on the 19th with a

0:54:42study session rather than with an

0:54:43already drafted ordinance for you to

0:54:44consider

0:54:47well i i

0:54:48i think staff makes a good case for

0:54:51being efficient and using staff

0:54:53efficiently

0:54:56and

0:54:57getting all that we can into one package

0:55:00and i think some of the amendments from

0:55:02last time

0:55:03changed and confused some of the

0:55:05direction

0:55:06where we were going

0:55:08one of the questions i had was on an

0:55:10issue involving

0:55:12the 20 percent increase

0:55:15and because it was a motion that i was

0:55:16involved with i was concerned because i

0:55:19had thought we were talking about

0:55:21definitions

0:55:24in coming up

0:55:25and making those consistent and can you

0:55:27respond to

0:55:28the fact that somehow it turned into a

0:55:3020 percent increase for landlords to pay

0:55:35i was confused by that sure um

0:55:38the the

0:55:39the proposed amendment that um council

0:55:42member lymon made at the at the meeting

0:55:45and i do want to note that he did ask

0:55:48questions of staff about that during the

0:55:50question portion of that item i i

0:55:53mentioned that only because i know that

0:55:54there have been some questions about his

0:55:56questions

0:55:58but that said the the most the amendment

0:56:01that he ultimately proposed

0:56:03was definitional related it changed the

0:56:05definition of displacement

0:56:07um but the proposed change was to

0:56:10identify an additional circumstance

0:56:13under which relocation assistance would

0:56:15be required

0:56:16and that circumstance was when

0:56:19rent increases over 24 months exceeded

0:56:2220 percent

0:56:23um so

0:56:24by making that amendment um he was

0:56:27proposing and by thereby adjusting the

0:56:29definition of displacement he was

0:56:31creating a circumstance under which

0:56:33when a tenant was facing rent increases

0:56:37in excess of 20 over 24 months they

0:56:40would be able to initiate the process

0:56:42for

0:56:43obtaining relocation assistance if they

0:56:45met the all the other criteria

0:56:48in the ordinance because it was it's not

0:56:50available to all tenants in the

0:56:52ordinances drafted

0:56:53so that was the amendment that was made

0:56:56it was um i i don't recall i i don't

0:56:59recall who um accepted his who seconded

0:57:02his motion to make it but um it was it

0:57:05was procedurally sound and so when the

0:57:08city council moved forward with a vote

0:57:10on the tenant relocation assistance

0:57:11ordinance it was with that amendment

0:57:14included and so that is reflected in the

0:57:16the ordinance that's in front of you

0:57:17tonight

0:57:18and aren't there those that say that

0:57:20comes in conflict with costa hawkins

0:57:23so we have received communications from

0:57:26california apartment associations of

0:57:28contra costa county and

0:57:30contra costa realtors association

0:57:32asserting that

0:57:35that that

0:57:36change to the tenant relocation

0:57:38assistance ordinance would constitute a

0:57:40form of rent control

0:57:42my office researched the question and

0:57:44found no published case law that had

0:57:47adjudicated the issue

0:57:49so i can't say

0:57:50definitively yes or no that that is the

0:57:52case i do think that um the arguments

0:57:55are are good ones and typically el

0:57:57cerrito has not wanted to be um the city

0:58:00that that establishes new case law

0:58:03um and so our recommendation is to

0:58:05proceed with the assumption that that

0:58:08would be a form of rent control and so

0:58:09it would be limited in application the

0:58:12same way that rent control ordinances

0:58:13would be so then you're saying our staff

0:58:15will not move that forward in any

0:58:18context for us to discuss at a later

0:58:20date

0:58:21as of right now we are treating that as

0:58:23part of the package of um

0:58:27of

0:58:28policies that the city council would

0:58:30like to see implemented

0:58:33what we had what we have stated in the

0:58:35staff report is if the city council

0:58:37wants to adopt the tenant relocation

0:58:39ordinance as amended tonight that

0:58:41ordinance contains a provision for the

0:58:43adoption of administrative regulations

0:58:46and the staff would move forward with

0:58:47adopting regulations to limit the

0:58:50application of that particular

0:58:52qualification for relocation assistance

0:58:54to situations that are compatible with

0:58:56costa hawkins

0:58:57if the council instead defers action on

0:59:00this item we would

0:59:02unless we hear differently from the

0:59:03council tonight

0:59:04we would intend to come back after the

0:59:06study session on the just cause eviction

0:59:08and rent registry ordinances

0:59:11um as with

0:59:12um a a package of documents that would

0:59:17reflect that the application of the uh

0:59:20of that 20 percent provision being

0:59:23limited by costa hawkins

0:59:26okay

0:59:28um

0:59:31i i i would like um

0:59:34the bigger package to come back i mean i

0:59:36think the report stated pretty well that

0:59:39what we came up with and added

0:59:42um

0:59:43conflicted a bit with the package you

0:59:45presented and what we

0:59:47finally agreed to

0:59:50and i i think it will be important to

0:59:52talk about the two things that i think i

0:59:55think the mayor and

0:59:56councilman lymon talked about with the

0:59:59just cause and the rent registry

1:00:01um

1:00:02i don't know if you want to hear my

1:00:04ideas now about if in fact

1:00:06you're going forward but i think

1:00:08i think just causes

1:00:11is important

1:00:12um i think even though uh

1:00:16there are two very definitive sides to

1:00:18the question of moving forward on just

Staff recommended pausing the tenant ordinances the Council had introduced in December.

The consent calendar — minutes, the transportation impact fee program, pooling authority board members and the successor agency's payment schedule — passed, moved by Lyman and seconded by Abelson.

The City Attorney gave the report. On 18 December the Council had considered four tenant ordinances and introduced three — minimum lease terms, termination of tenancy and relocation assistance — but not rent review, adding to relocation a trigger of rent increases over 20 percent in 24 months.

Staff's reasoning: two more ideas, just cause and a rent registry, were coming, and the earlier ordinances might need changes “to work with the other two” — so hold them and consider all together.

The plan: a study session on 19 February to explain legal constraints and hear the public.

Fadelli asked how the 20 percent trigger arose; the City Attorney said it came from Lyman's amendment, that apartment and realtor associations argued it was rent control, and that with no case law the city would treat it as such and limit it under Costa-Hawkins.

Fadelli supported deferring, calling just cause “good for tenants… and… good for landlords,” with a set list of issues.

Significant

Staff recommend deferring the three tenant ordinances introduced on 18 December, to be combined with just cause and a rent registry after a study session on 19 February.

07 Four units or eight captions 1550–1899

1:00:20cause

1:00:22i think obviously it's good for tenants

1:00:24and i think it's good for

1:00:26landlords that they have a set list of

1:00:29issues that they can work with and move

1:00:32on

1:00:33and deal with

1:00:35uh what i would love coming up and i'm i

1:00:37think this is me talking about

1:00:39supporting the defer

1:00:41of the first three that we have from

1:00:43last time and moving with the other

1:00:46ideas that were recommended

1:00:48is is to make sure that

1:00:54our staff deals with the concerns about

1:00:57just cause dealing with

1:01:00the possible discrimination that can

1:01:02happen initially if in fact we have this

1:01:06where people landlords may in fact be

1:01:08concerned about who they allow to rent

1:01:10their place in fact there are stricter

1:01:12rules

1:01:13to get them out and i'm concerned about

1:01:15that discrimination there are certain

1:01:16types of people certain landlords may

1:01:18not want to

1:01:19have as renters that's one issue an

1:01:22issue that i have

1:01:25are there

1:01:27places and cities where we have just

1:01:29cause and we don't have rent control

1:01:32they're always combined i would love to

1:01:34see

1:01:36examples of us just having the just

1:01:38cause does it not work does it work

1:01:42without the rent control added to it

1:01:45uh and finally i've heard from a lot of

1:01:47people in town as

1:01:48councilman gabriel quinto has mentioned

1:01:50about the mom-and-pop landlord

1:01:53good landlords who are trying to do

1:01:56their best and have had a bad tenant who

1:01:58have been either destructive mean

1:02:01drugs not paying their rent

1:02:03and it's cost them a ton of money to get

1:02:05rid of them and to go through the

1:02:07process

1:02:08so i would love mom and pop what what

1:02:11what is the level of mom and pop i know

1:02:13we have what 87 percent small landlords

1:02:17uh in this city that's their livelihood

1:02:19that's their money

1:02:22are we talking about four units eight

1:02:23units

1:02:25if we move forward with just cause but i

1:02:27think it would be a great exercise for

1:02:28this community to do so

1:02:31i look forward to the information that

1:02:32may come back i had thought maybe

1:02:35ordinances would have been developed and

1:02:36given to us on that next

1:02:38commission i think i told a few people

1:02:40in the audience that that might be the

1:02:42case but we're developing as some of us

1:02:44have said a unique el cerrito direction

1:02:47these are some of the components we need

1:02:48to work with and i will support

1:02:50deferring and coming back

1:02:52next month thank you

1:02:56mayor pretend yeah

1:02:58i have remarks that i'll say say for

1:03:01after um

1:03:03public comment but so we're in question

1:03:06portion

1:03:07and

1:03:08i will have to start by saying

1:03:11phenomenal job doing exactly what we

1:03:13asked you to do this is

1:03:15this is perfect and if i read through

1:03:17the

1:03:18the matter correctly we could enact

1:03:21these tonight but it would

1:03:23send mixed signals and would potentially

1:03:25not be able to dovetail with future

1:03:27ordinances that we would consider and

1:03:29the rent registry is certainly one of

1:03:31the future ordinances that i'm strongly

1:03:33uh advocating for and and

1:03:36that

1:03:38taking the time to have a public

1:03:40discussion may allow us to reach a very

1:03:42good solution for unique to el cerrito

1:03:45the questions that i have

1:03:48um

1:03:50you know

1:03:51your presentation has covered answered

1:03:52most of the questions the the discussion

1:03:54about the fact that we have not

1:03:56adjudicated whether or not the

1:04:00the

1:04:01a rent-based

1:04:03trigger for displacement

1:04:05is a

1:04:07um actual uh use of cost or is rent

1:04:10control or not is

1:04:12acknowledged and well presented

1:04:14uh but as council member abelson was

1:04:17over here chuckling we certainly don't

1:04:19um we don't have the resources to be the

1:04:21test case for

1:04:23for that and and potentially one of our

1:04:26uh larger sisters could potentially

1:04:29could take on that that idea

1:04:32um

1:04:35if i read this correctly we could adopt

1:04:3710 300 tonight with that administrative

1:04:40process that you outlined in your

1:04:41presentation

1:04:44that's correct

1:04:45okay and

1:04:46one of the concerns i uh have again that

1:04:49potentially as a result of having a

1:04:51longer dialogue would be potentially

1:04:54solved

1:04:55the staff report does touch on the fact

1:04:58that echo which is abbreviation for a

1:05:01housing organization

1:05:04is not able to provide services under

1:05:06this current

1:05:08version of the

1:05:11relocation assistance ordinance

1:05:13do you have any

1:05:15idea of what costs those are because it

1:05:17the staff report from december

1:05:1918th

1:05:21focused on thirty thousand dollars for

1:05:23these and primarily was mediation or

1:05:25thought to be mediation

1:05:26um and and not necessarily relocation so

1:05:30any sense of what

1:05:33cost where

1:05:35i know echo can't do it and you can

1:05:36expand on that if you want to but any

1:05:38idea of what the cost would be for the

1:05:41relocation assistance

1:05:43i've i've reached out to a couple of

1:05:44organizations and i should be having

1:05:47that

1:05:48back to you all very soon but ideally

1:05:49when we come back to the study session

1:05:51i'll be able to give you a complete

1:05:54more accurate sense of what that will

1:05:55look like in terms of financial

1:05:57implications as it relates to the

1:06:00relocation triggered by rent increases

1:06:02great thank you um

1:06:10okay no that's the extent of my comments

1:06:12tonight or questions tonight

1:06:14councilmember quinto

1:06:17i echo what my council members uh have

1:06:20just mentioned um

1:06:22again council member for delhi i

1:06:24appreciate you mentioning uh the

1:06:26importance of being mindful with our

1:06:29mom and pop landlords and you did say 87

1:06:31percent

1:06:33uh of uh the landlords here are our

1:06:36small-time landlords so um knowing that

1:06:39and i just want to make sure

1:06:41that uh we protect uh them as well

1:06:45my opinion is

1:06:48supporting

1:06:50the rent registry and looking into that

1:06:53more

1:06:54so

1:06:57when we spoke about that

1:06:59last month i thought that was just to

1:07:02look at prices on that on on the

1:07:05software and to look at

1:07:07the different ones that are available

1:07:09and then to check back with us to see

1:07:11how much

1:07:12all that costs we don't have money uh

1:07:16for uh looking at what our our neighbors

1:07:18next door are doing uh with their rent

1:07:20control we don't have any kind of money

1:07:22like that close to that

1:07:24more important things to deal with like

1:07:26fire prevention so but i don't want to

1:07:28get in a huge bureaucracy

1:07:31uh with rent control because that

1:07:33um

1:07:34yeah

1:07:35we don't we can't afford it we don't we

1:07:38do not have uh that kind of money to

1:07:41create a huge bureaucracy like what our

1:07:44neighbors of richmond have done and i've

1:07:45heard that they're using their general

1:07:47fund to pay for it because they don't

1:07:48have the money to pay for it so uh

1:07:51looking at that

1:07:53definitely looking at

1:07:55the cost of rent registry and

1:07:59and

1:08:00let's look at

1:08:02how much

1:08:05let's look more into the detail with

1:08:08tenant

1:08:09relocation

1:08:10that's that's what i support and so i

1:08:14definitely support

1:08:15deferring this

1:08:17matter to the 19th of next month

1:08:21council member abelson

1:08:23in addition to

1:08:24what's already been said i think the

1:08:26thing that would really interest me

1:08:29uh in looking at this again is um

1:08:32we're talking about the mom and pops

1:08:35and

1:08:36um

1:08:38i would find it interesting to get a

1:08:41sense of

1:08:43what mom and pops

1:08:45could afford

1:08:48and what they couldn't afford

1:08:51and um

1:08:53as i understand it look reading this

1:08:56over a few times is that one of the this

1:08:59never applies as i understand it

1:09:02to

1:09:04uh single-family homes correct

1:09:07uh just cause eviction ordinances can be

1:09:09applied to single-family um rent control

1:09:12ordinances cannot under cost oh the

1:09:14six months

1:09:17rental assistance

1:09:19is

1:09:20in this case in that case considered

1:09:22what category well

1:09:24the relocation assistance ordinance was

1:09:27never written to apply to single family

1:09:30ordinance single-family homes that are

1:09:32being rented regardless of whether or

1:09:33not costa hawkins applies to any

1:09:35component of it they were always

1:09:36excluded and we'll continue what do they

1:09:39cover

1:09:41what size units

1:09:43well it was

1:09:45so to clarify the different policies and

1:09:47it's one of the reasons that we'd like

1:09:48to come back in february to discuss so

1:09:50the previously the ordinances that were

1:09:53introduced the only one that applied to

1:09:55single family was the termination of

1:09:57tenancy

1:09:59when the amendment was made to ask to

1:10:02add the 20 increase as a criteria for

1:10:05relocation assistance

1:10:07as we've discussed i think it's staff's

1:10:09interpretation that that would not do to

1:10:11costa hawkins apply to single family or

1:10:14to development um

1:10:16um after 19 that has received received

1:10:19its certificate

1:10:20um and then my question that just cause

1:10:23is one of the things we want to come

1:10:24back and discuss which is which at what

1:10:26threshold would that apply to what types

1:10:29of units you've all used the term mom

1:10:31and pop but i think the other thing is

1:10:33number of units in somebody's

1:10:35local portfolio okay that's kind of what

1:10:37i was interested in discussing not the

1:10:40other things

1:10:41what i um

1:10:43and when i mean we have a lot if you

1:10:45think about

1:10:46what it looks like here in el cerrito

1:10:49there are a lot of duplexes there are a

1:10:51lot of four plexes those are we have a

1:10:53lot of those units i believe i don't

1:10:55know how many exactly and that's

1:10:58precisely what we hope to discuss in

1:10:59february because with uh going back to

1:11:02council member fidelity's point we

1:11:04didn't feel that we could get direction

1:11:05on that when when asked to return with

1:11:07just cause and rent registry we needed

1:11:09to come back and also discuss

1:11:11these items the thing that

1:11:15then i'm not clear about is whether the

1:11:17so-called let's say that let's say it

1:11:19was a four-flex even

1:11:21i'm not sure that the landlord

1:11:25has the funding

1:11:27you know money

1:11:29uh

1:11:30to provide six months rent even i mean

1:11:32you know i mean

1:11:34i was thinking gee what if i were that

1:11:36per i mean i know i wouldn't

1:11:38you know

1:11:39i don't own a four-plex either but

1:11:42you know i

1:11:44these are numbers that what you know

1:11:45like what would be an example of this is

1:11:48a number that could be

1:11:50um kind of high i think

1:11:53so i mean if we could look at it in

1:11:55terms of

1:11:56account just showing a sample

1:11:58calculation

1:12:00of if the rent were and the rent

1:12:02increase were

1:12:04then um how much money is the mom and

1:12:08pop landlord

1:12:10let's call it

1:12:11putting out i think a fourplex is

1:12:13probably

1:12:15a mom and pop because my guess is

1:12:18that

1:12:20this what happened is they

1:12:22they sort of saved up the mom and pop if

1:12:25you know in that scenario they probably

1:12:28saved up

1:12:29their money or they lived in it

1:12:30initially and um moved to the hills

1:12:35when

1:12:36they had

1:12:37children

1:12:39and but kept

1:12:41ownership of that initial property down

1:12:44in the flats that that's kind of to me

1:12:46the scenario of what i've seen people do

1:12:48in el cerrito um

1:12:51that i you know people that i actually

1:12:52know and

1:12:54that own a mom and po you know the mom

1:12:57and pops that i know that that's kind of

1:12:58what it looks like

1:13:00um so if it would be interesting to see

1:13:02the calculations on

1:13:05on the money and

1:13:07because i i mean i don't know if it

1:13:09would work in terms of we can say that

1:13:12this is what it is but if people can't

1:13:14pay it they can't pay it

1:13:16as a reminder and it's excellent to hear

Councilmembers questioned scope and asked for clearer information.

Fadelli: “we have what 87 percent small landlords uh in this city that's their livelihood” — “are we talking about four units eight units if we move forward with just cause.” Quinto echoed the 87 percent figure.

Fadelli had expected ordinances to come back, and had told residents so.

Staff clarified: of the December ordinances, only termination of tenancy applied to single-family homes, and the 20 percent rent-increase relocation trigger added by amendment might conflict with Costa-Hawkins.

Lyman called the work “phenomenal” and said the city lacked “the resources to be the test case” on the 20 percent trigger; Quinto supported pricing a registry but not “a huge bureaucracy” like Richmond's.

Staff would bring financial implications of relocation triggered by rent increases.

Staff also said the much-cited 87 percent figure's origin was unclear.

Note

Staff say a relocation payment triggered by a 20 percent rent increase may count as rent control under Costa-Hawkins; councilmembers cite a figure of 87 percent small landlords whose origin staff say they do not know.

08 Renters are an emergency too captions 1900–2299

1:13:18from you all tonight the types of

1:13:20information you'd like to have aisa and

1:13:23i staff come back with um and so we can

1:13:26look at

1:13:27what thresholds apply in other cities

1:13:29and try to come up potentially with some

1:13:31sort of operating economics but as a

1:13:33reminder i also want to point out it's

1:13:34only under certain conditions

1:13:37that

1:13:38the proposed

1:13:40relocation payments would apply so

1:13:42they're under very specific as we've

1:13:45heard from the amendment now it's when

1:13:47there is a significant remodel or

1:13:50demolition taking place that would

1:13:51displace people for more than a year

1:13:53and with the relocation payments it's

1:13:55when rent is increased by more than 20

1:13:57percent in two years

1:14:00that's one condition the other condition

1:14:02is that the tenants are making the

1:14:04household is making less than 120

1:14:07ami

1:14:08and the third condition is that they opt

1:14:10to leave so just as a reminder this is

1:14:12not a global payment

1:14:14when they opt to leave

1:14:16when he wants to leave if the tenants

1:14:18after rece if if they in fact receive a

1:14:2220 rent increase over 24 months

1:14:24decide that that is beyond their

1:14:26capability to absorb and decide to

1:14:30vacate and relocate

1:14:33that's when it would that's that's the

1:14:34only conditions under which it would

1:14:35apply

1:14:36okay but but it would be six months as

1:14:39we've stated it i think it's depending

1:14:41on the

1:14:42three three to five depending on the

1:14:44household

1:14:45three to five okay uh it's it just still

1:14:48seems like a lot of

1:14:50money maybe it's because

1:14:52i'm not rich

1:14:54but the um

1:14:57and uh

1:14:59so anyway some calculations that would

1:15:01show you know if

1:15:03such and such a condition occurred

1:15:05what's the the dollar amount and in

1:15:08particular at the lower ends

1:15:11um it would be

1:15:13and then the other thing i think it

1:15:15would be helpful for me to know and i

1:15:17have seen evidence of it just looking

1:15:19through literature

1:15:20is

1:15:21we're trying to build some units here

1:15:25and

1:15:27the

1:15:28my concern is is that we're trying we're

1:15:30still in the stage of trying to build

1:15:32some units

1:15:33and i would actually like is to provide

1:15:36some units

1:15:38because i think we have a real severe

1:15:40shortage of housing

1:15:42and so i'm really concerned about that

1:15:44and some the question i have is

1:15:47if we did whatever

1:15:49would it have a negative

1:15:51serious negative impact on our ability

1:15:55to

1:15:56see that housing completed

1:15:58i don't know

1:15:59how much of that you can actually do but

1:16:03i have seen it reported in literature

1:16:05though

1:16:06that

1:16:08you know there is a relationship

1:16:11and um

1:16:13so

1:16:14it's

1:16:15not going to help us at all if we

1:16:17don't have

1:16:18units

1:16:20we can we can discuss that at the

1:16:22meeting that is one of the um

1:16:24elements of costa hawkins and exempting

1:16:27new construction

1:16:29which is still for example dealing with

1:16:31construction loans and

1:16:33the stuff that we're talking about doing

1:16:37it may not be covered by costa hawkins

1:16:40right

1:16:41with the new ordinances that's the study

1:16:42session like just cause we could

1:16:44determine whether you felt whether

1:16:46council felt

1:16:47we could we could try to pull together

1:16:49how other cities have handled it and

1:16:51respond to some of your questions to the

1:16:52best of our ability but in the end it

1:16:55will be up to the city council to

1:16:57determine what types of units are

1:16:59included and to try to use the best data

1:17:02and information available to determine

1:17:04what those likely when you say

1:17:09we would determine what

1:17:10types of units

1:17:12aren't there certain ones that are like

1:17:14excluded like single family

1:17:17the as the city attorney said not with

1:17:19just cause ordinance that would be up to

1:17:21so a person who has

1:17:24um

1:17:24[Music]

1:17:27if they were renting out a house they

1:17:29could

1:17:30have to put out six months rent

1:17:33to the exiting tenant

1:17:36so that so the relocation or five months

1:17:38excuse me so as sky the city attorney

1:17:40mentioned the relocation ordinance would

1:17:43have some categories that would not

1:17:45apply such as units built after 1995

1:17:47single-family homes condos so that is

1:17:51separate now for the just cause

1:17:52ordinance for the eviction that could

1:17:54apply to any rental unit

1:17:57depending on how you all decide that we

1:18:00should design that ordinance so when we

1:18:01come back for the study session we'll

1:18:03definitely

1:18:05be covering all of those things because

1:18:06those are important things to think of

1:18:08as we craft this policy and come bring

1:18:10it back with you with exactly what you

1:18:12have in mind just to reiterate what

1:18:14melanie said we're talking about a

1:18:16number of different policies

1:18:18some of which

1:18:20state law has something to say about

1:18:22what kind of units they can apply to

1:18:23some of which are a council choice i

1:18:25think what we could do as part of coming

1:18:27back for the study session is to

1:18:29maybe build out a chart for you that

1:18:31would that would illustrate that

1:18:32information because i think we've now

1:18:34understood that there are questions

1:18:35about which would apply to which types

1:18:37of units and so we can provide that

1:18:38information to you at the 19 meeting on

1:18:40the 19th right it actually feels to me

1:18:43as a layperson

1:18:45that

1:18:47this is very technical

1:18:50and

1:18:51it's very so it's

1:18:53very difficult to kind of

1:18:55see what's you know what falls into what

1:18:58bucket so to speak in terms of all of

1:19:00that and um

1:19:02we'll see what we can do to simplify

1:19:04that information for the council so i

1:19:05think but i do think that one of the

1:19:07things i have a lot of concern about

1:19:09because of the what 87

1:19:13of the um

1:19:16um

1:19:18is that is that the right number

1:19:20we're wondering ourselves we

1:19:22we know the number has been used but

1:19:23we're not sure of the origin of it it's

1:19:25interesting to know what that number is

1:19:26i guess it's also going to it's also

1:19:28going to depend on the definition of

1:19:30course but yes we will we'll see what we

1:19:32can do to come up with that as well yeah

1:19:34just you know how um

1:19:37it could be you know how much of an

1:19:39impact is it on uh how many

1:19:41people how many people you know will be

1:19:45i know i certainly couldn't afford to be

1:19:47a landlord

1:19:48if

1:19:49i had that hanging over my head ever you

1:19:52know i would just not do it

1:19:54if if that were um

1:19:58let me get to my kids to move home or

1:20:00something if i were that person

1:20:02but um the um

1:20:05these are pretty high cost to me

1:20:08of us

1:20:10that um anyway

1:20:12i think i've kind of

1:20:13put forth my questions which is i think

1:20:15what we're trying to do now

1:20:18thanks yes i just wanted to reiterate

1:20:21that we're doing questions on the staff

1:20:23report

1:20:24so i only have one question

1:20:26and that is

1:20:28looking at this i feel like

1:20:30we made good progress in terms of some

1:20:33rental protections by passing the

1:20:35ordinance and if we don't pass

1:20:37the ordinances tonight we delay any

1:20:40protections and i know that that's

1:20:42you know there's people out there saying

1:20:44fire's an emergency and there's people

1:20:45out there saying that protecting renters

1:20:47is an emergency and we're delaying it

1:20:49even further there's potential

1:20:51consequences for families in our

1:20:53community right now by delaying this

1:20:56um

1:20:57that being said i know there's a study

1:21:01session in february

1:21:03what do you anticipate as a timeline

1:21:06if we were to move forward with a

1:21:08combined package after the study session

1:21:11what what are you guys looking at in

1:21:13terms of a timeline

1:21:15so we are looking at 30 to 60 days

1:21:17obviously the sooner the better so we

1:21:19will work with the city attorney as

1:21:21swiftly as we can

1:21:24to move this forward once we get

1:21:26direction at the february 19th meeting

1:21:29we will

1:21:30know exactly what we need to move

1:21:32forward with and at that point

1:21:34um we can work together with them to

1:21:36bring it back

1:21:38okay thank you so now we'll move on to

1:21:41comments from the public

1:21:43we have 12 speakers tonight

1:21:46the first is bill coleman followed by

1:21:48eric mayer and elizabeth

1:21:52torres okay let's please proceed

1:22:00good evening members of city council my

1:22:02name is bill coleman i live on lagunitas

1:22:04avenue here in el cerrito i encourage

1:22:06you to direct the staff to go back look

1:22:09at the ordinances again gather more

1:22:11input it it may not

1:22:13be readily apparent to people in the

1:22:15public who haven't followed this issue

1:22:17closely but there's been a lot of input

1:22:20from the different constituencies in the

1:22:21community that have gone into this

1:22:23process

1:22:24and i think that's that's made it a

1:22:27better process and i encourage you to

1:22:30give the staff more time to

1:22:32get more of that input i think one of

1:22:34the things that you've highlighted is

1:22:36that

1:22:37there is a significant percentage of

1:22:39properties that are owned by

1:22:42families

1:22:43in el cerrito and uh that's a challenge

1:22:47because some of those people probably

1:22:49shouldn't be landlords they probably

1:22:52don't take their responsibilities

1:22:53seriously enough and cause problems for

1:22:56the people that rent there

1:22:58they're the exception not the rule

1:23:01ordinances that can protect everyone and

1:23:05at the same and deal with the landlords

1:23:07and property owners that make it

1:23:09difficult for the renters but at the

1:23:11same time not jeopardizing our ability

1:23:13to grow the city and help landlords who

1:23:16try to do the right thing to be

1:23:18successful

1:23:19thank you thank you

1:23:28good evening madam mayor fellow council

1:23:30members staff

1:23:32eric myers i was might remember i spoke

1:23:34uh briefly last time

1:23:36where several different hats in this

1:23:38area it's a really important issue to me

1:23:40i'm a landlord tenant attorney i'm also

1:23:43a property owner and a property manager

1:23:46and i'm also a realtor now the immediate

1:23:49past president of the contra costa

1:23:50association of realtors i encourage you

1:23:53to take staff's recommendation as well i

1:23:55commended your staff last time i was

1:23:57here i'll do it again now that they they

1:23:59really get this issue and they get the

1:24:01need and they understand

1:24:04how to put this together but they need

1:24:06the time and they need the resources to

1:24:08do it right for the council and for the

1:24:10city and the community and so i would

1:24:12encourage you to accept the

1:24:14recommendation

1:24:15and i'd also encourage you

1:24:17in gathering information and doing the

1:24:19study session to reach out to us as

1:24:21realtors like you have already

1:24:24we appreciate providing input we're not

1:24:26just on landlord side we're on

1:24:28everybody's side we're for housing and

1:24:30we're for real property rights for

1:24:32everyone tenants have rights landlords

1:24:34have rights and we really have awareness

1:24:36of this issue and we really would like

1:24:38to help you by providing our input

1:24:41and i'd also encourage you to look at

1:24:43data that's out there on these types of

1:24:45ordinances and if they've worked in

1:24:48communities such as el cerrito i know el

1:24:50cerrito is unique but there are

1:24:51similarities with other communities and

1:24:54see if what we're trying to do is really

1:24:56going to solve an issue that we really

1:24:58have in this community if it's really

1:24:59going to work or it's just going to cost

1:25:01us a lot of money use our time and

1:25:03really just frustrate

1:25:05progress that we're trying to make so

1:25:07thank you

1:25:09thank you

1:25:10next speaker is elizabeth

1:25:12thorschus

1:25:17hello

1:25:18i'm elizabeth thorsness

1:25:21um

1:25:22and i just i heard after the last

1:25:24meeting that you were talking about a

1:25:26rent registry

1:25:28which will allow you to get information

1:25:30and i just wanted to go on record that

1:25:32i'm so glad you're doing that because i

1:25:35don't think you have enough information

1:25:38about what rents really are how many

1:25:40nasty evictions do we have what is going

1:25:43on in el cerrito because i i i think

1:25:45that we do have a lot of mom and pops

1:25:48who um it's their livelihood and they've

1:25:50become connected to their tenants and

1:25:52have them for many years in many cases

1:25:54you'll be able to find that out and

1:25:56we'll all know that

1:25:57in the meantime when people do talk

1:25:59about certain things happening to them

1:26:02or to their tenant friends it'd be

1:26:04really useful if they would say what the

1:26:06rent was before it was raised 20 percent

1:26:09and how long the tenant had been there

1:26:11and that sort of thing give us some

1:26:12information and be sure it's in el

1:26:14cerrito because i think el cerrito is

1:26:18well it's not san francisco that's for

1:26:20sure so anyway that's all i wanted to

1:26:22say thank you thank you the next speaker

1:26:25is robin mitchell followed by howdy

1:26:28gowdy and sherry drobner

1:26:37my name is robin mitchell and um i

1:26:39understand the staff's desire to have a

1:26:41unified tenant protection package based

1:26:43on what the city council passed at the

1:26:45december meeting as well as their

1:26:46direction to staff to come up with

1:26:47proposals for rent registry and just

1:26:50cause eviction however because putting

1:26:52together such a complete package will

1:26:53take months the delay will result in yet

1:26:56more displacement by el cerrito renters

1:26:58due to lack of tenant protections

1:27:00therefore if that's the path the city

1:27:02council proposes to take it is even more

1:27:04urgent that you insist that an immediate

1:27:06anti-gouging rent moratorium be

1:27:08established along with just cause

1:27:09eviction ordinance both of which need to

1:27:11be in place while the complete package

1:27:13is being developed

1:27:15i urge you to review the human relations

1:27:16commission's resolution which was

1:27:18presented at the december city council

1:27:20meeting

1:27:21action items one through four and that

1:27:22resolution are what the city council

1:27:24should adopt while staff prepares a

1:27:25comprehensive tenant protection package

1:27:27and those steps are one immediately

1:27:30established just cause eviction policies

1:27:32specifically detailing the only

1:27:33circumstances under which a landlord may

1:27:35evict the tenant two immediately

1:27:37establish a temporary measure limiting

1:27:39rent increases to be within a certain

Councilmembers and the public argued over delay.

Abelson wanted dollar figures for relocation at the lower end, and worried protections might slow the building the city still needed.

She found the material “very technical… very difficult to kind of see… what falls into what bucket.”

The Mayor, against delay: “if we don't pass the ordinances tonight, we delay any protections… there's people out there saying fire's an emergency, and there's people out there saying that protecting renters is an emergency, and we're delaying it even further.”

Staff expected to return 30 to 60 days after the February study session.

Eric Myers, a landlord-tenant attorney and past president of the county realtors' association, supported the recommendation: “we're not just on landlords' side… tenants have rights, landlords have rights.”

Robin Mitchell, citing the Human Relations Commission's resolution, asked for an interim rent cap pending ordinances, a permanent housing commission with renters, landlords and homeowners, and a citizen-led task force.

Bill Coleman urged more time for input; Elizabeth Thorsness welcomed the registry: “i don't think you have enough information.”

Significant

The Mayor: “there's people out there saying fire's an emergency and there's people out there saying that protecting renters is an emergency and we're delaying it even further.”

09 Santa Cruz's cap captions 2300–2699

1:27:40percentage to protect tenants from rent

1:27:43gouging which will be in place pending

1:27:44the adoption of rent control ordinances

1:27:46three immediately establish a permanent

1:27:48citizen board or commission equally

1:27:50represented by citizen renters landlords

1:27:53and homeowners to advise the city

1:27:55council on matters of housing

1:27:57and four immediately establish a

1:27:58citizen-led task force separate from the

1:28:01above-described board or commission

1:28:03specific to the topic of tenant

1:28:04protections to be in existence for the

1:28:06full duration of the time period in

1:28:08which the city council and city staff is

1:28:10researching developing and implementing

1:28:12the affordable housing strategy to work

1:28:14alongside the city of el cerrito to

1:28:16provide a direct and consistent access

1:28:18point for it citizen input and advisory

1:28:20on matters of tenant rights and

1:28:22protections i thought that the

1:28:24resolution that they put together was

1:28:26very well thought out this seems like

1:28:27the perfect strategy to pursue and i'm

1:28:30kind of surprised that

1:28:32at least those last two things that the

1:28:35um permanent citizen board and the

1:28:37citizenless led task force have not been

1:28:39discussed at all i think it's really

1:28:41important for you guys to do that i've

1:28:42been on lots of those kinds of

1:28:44especially the task force part of it

1:28:46i've been on several of those when the

1:28:47city is putting together a master plan

1:28:49or something i think that it's really

1:28:51important to do that in this case and i

1:28:53would also like to say that you know i

1:28:55have been a renter in el cerrito and

1:28:58other places and just because you know

1:29:00it's a mom-and-pop landlord doesn't mean

1:29:02they're a good landlord i've been in

1:29:03plenty of places where there were mold

1:29:05problems that the landlord didn't fix

1:29:07and all kinds of other maintenance

1:29:08issues

1:29:10and i and i know other people that

1:29:12that's the same thing so i think it

1:29:14shouldn't matter what type of landlord

1:29:16it is we need regulations and ordinances

1:29:19that protect both landlords and tenants

1:29:22under certain circumstances and that

1:29:24should apply across the board no matter

1:29:25who they are and i'm also glad

1:29:28that the attorney stood up to the caa

1:29:30and the ccar regarding the brown act

1:29:32allegations

1:29:34and i also feel that if you think that

1:29:36the cost of hawkins doesn't apply to

1:29:38tenant relocation ordinance the city

1:29:39should stand firm on that and not cave

1:29:42to those

1:29:44influences

1:29:46thank you

1:29:50mayor and council members and my name is

1:29:52howdy gowdy and live in alcerio

1:29:55so i want to thank you for your

1:29:57direction at your last meeting i think

1:29:59it was really important that you

1:30:01introduced the um just cause and

1:30:04rent registry

1:30:06items for

1:30:08consideration

1:30:10um as well as the amendments that were

1:30:12made to the

1:30:14ordinances

1:30:15particularly the

1:30:1820 two-year relocation um

1:30:22and i agree with what robin just said

1:30:24that it if it can apply to all housing

1:30:27types it should apply to all housing

1:30:29types um one of the things that we need

1:30:32most is effective

1:30:36measures that can apply

1:30:38under costa hawkins and so i think it

1:30:40requires

1:30:42creative thinking about what will work

1:30:45in those

1:30:46circumstances so

1:30:49um

1:30:51you know the big picture here is that

1:30:53you introduce some

1:30:55meaningful improvements

1:30:58but it isn't a complete package and so

1:31:00it is appropriate to pause and collect

1:31:03and make a complete package

1:31:05in particular you know the biggest piece

1:31:07that's missing is actually something

1:31:11about you know rent increases which was

1:31:14left out of your further consideration

1:31:16and so i think you should add that to

1:31:19the package to be discussed

1:31:21um

1:31:22and

1:31:23that's a

1:31:24you know

1:31:26all of these things are going to be a

1:31:28prolonged discussion and so again it's

1:31:30important to look back at the hrc

1:31:32recommendation that was made

1:31:34put in a temporary moratorium to allow

1:31:37us the time and safe space to have this

1:31:39discussion without harming any

1:31:42more tenants and and then let's let's

1:31:46build this package

1:31:48um

1:31:50you know

1:31:51it's been said

1:31:53many times tonight you know

1:31:55this term of mom and pop landlords it's

1:31:58really not about

1:32:00the size or giving the landlords a

1:32:02folksy name

1:32:04this is about fairness right so

1:32:06most of our landlords are fair but these

1:32:10regulations are about constraining bad

1:32:12actors no one who does reasonable

1:32:16interactions with their tenants should

1:32:17be

1:32:18at all

1:32:19you know concerned about you know

1:32:22sensible

1:32:23constraints that you know are just about

1:32:26being fair you know it's like every one

1:32:28of those

1:32:29tenants is a mom or a pop and you know

1:32:31it's like

1:32:32they they deserve that same um

1:32:36sort of

1:32:37consideration that your

1:32:39offering this uh mythical mom-and-pop

1:32:42landlord so let's just

1:32:44back off and think about fairness this

1:32:46is about giving equal protection to both

1:32:49sides

1:32:50and

1:32:51really

1:32:52real protection to tenants which hasn't

1:32:55existed for so long so i hope you move

1:32:57forward with that thanks thank you

1:33:05hi good evening again i'm sherry robiner

1:33:07i live in el cerrito

1:33:08um first i appreciate the fact that you

1:33:12said that you we actually don't know

1:33:13where this 87 number comes from

1:33:16nor do we have the definition

1:33:18so i think that would be really

1:33:20important since it seems to be central

1:33:22to the discussion this evening i mean i

1:33:25hear we're not talking about tenants too

1:33:27much but we are talking a lot tonight

1:33:28about the mom-and-pop landlords so let's

1:33:31find out who we're talking about

1:33:33um the study session that you're

1:33:35proposing in february what i want to say

1:33:38about study sessions that i've noticed

1:33:39they're great for the staff and the city

1:33:41council to talk about these things but

1:33:43they don't allow any opportunity for

1:33:45dialogue for the community we come up

1:33:47here and we can make our comment we

1:33:49can't even ask questions

1:33:51so i go back to what both howdy and

1:33:54robin um have pointed out

1:33:56is that the human relations commission

1:33:59did

1:34:00bring forward a resolution

1:34:03that they had passed um suggesting

1:34:06a number of items and included in that

1:34:08was the idea of a task force of

1:34:10community members of landlords of

1:34:13tenants of homeowners to really discuss

1:34:15this

1:34:16in a very meaningful way so that we can

1:34:18think about some alternatives and there

1:34:21may be things we have not thought about

1:34:23that you know just because one city does

1:34:25it or does that maybe there's something

1:34:27that we haven't yet thought about and we

1:34:28need to think about that

1:34:30and i would think that would be very

1:34:32important to do for our city

1:34:34but i don't see a place i don't hear

1:34:36that as as a possibility instead i just

1:34:40hear us doing a more administrative

1:34:42approach again to this problem

1:34:45and if we are going to have a long-term

1:34:47solution and really think about it i'm

1:34:50going to have to again echo the idea

1:34:52that there is there is a serious issue

1:34:54going on for renters and i believe they

1:34:57do need some kind of protection and i

1:35:00would suggest that there would be a

1:35:02temporary rent cap and just cause

1:35:04eviction why this is happening i also

1:35:07want to mention the city of santa cruz

1:35:09which is not el cerrito but i just you

1:35:11know they didn't pass rent control but

1:35:13then the city council on january 9th

1:35:15did reinstitute just cause eviction and

1:35:18attendant relocation allowance for them

1:35:21and they included in it a 3.5 increase

1:35:25for the first year and a seven percent

1:35:28for year two so any increase that went

1:35:30over seven percent the second year uh

1:35:32would would trigger

1:35:34um the relocation so i just want to

1:35:36mention that and you can probably find

1:35:38that on the internet

1:35:40so those are my comments for this

1:35:42evening and i do hope that you would

1:35:44revisit the human relations commission

1:35:46resolution thank you

1:35:50the next the next speaker is iona clark

1:35:53followed by rory lynn antonio and

1:35:56jeffrey wright

1:36:04can you hear me

1:36:06my name is alana clark

1:36:09i live in richmond i have a duplex in

1:36:11richmond and i manage five units to

1:36:15support my father and those five units

1:36:16are in oakland

1:36:18i'd like to talk to you about just cause

1:36:21or eviction control it seems like a

1:36:23great idea

1:36:24arbitrary unjust evictions have

1:36:26devastating results for renters and they

1:36:29give housing providers a bad name

1:36:31unfortunately just cause has several

1:36:33unintended consequences

1:36:35first it creates an entitlement for

1:36:37renters who sometimes

1:36:39make life difficult for their neighbors

1:36:41their housing providers

1:36:43but ties the hands of the housing

1:36:44providers

1:36:46second

1:36:47housing providers under just cause are

1:36:49extremely careful about who they rent to

1:36:52and this accelerates rates of

1:36:53gentrification

1:36:56in these jurisdictions

1:36:58worse

1:36:59thousands of units in san francisco

1:37:01after 30 years of rent control and just

1:37:04cause remain

1:37:05vacant by choice

1:37:09even in the pricey market of san

1:37:10francisco

1:37:12just cause makes dealing with difficult

1:37:14renters or simply terminating a lease

1:37:17because the owners may want to use a

1:37:20space

1:37:21at some future point for a family member

1:37:24makes these situations prohibitive

1:37:26so they simply leave

1:37:29units

1:37:30vacant

1:37:31there's something wrong with a policy

1:37:34that results in further constriction of

1:37:36rental housing

1:37:38in the midst of a rental housing

1:37:39shortage especially as severe as the one

1:37:42excuse me in san francisco

1:37:45so please do keep this in mind when

1:37:48studying this issue

1:37:50and kudos to you all

1:37:51for setting up and gathering monitoring

1:37:54i think a rent registry is a great idea

1:37:57i think looking at reasons why renters

1:38:00leave

1:38:01is a great idea you need this

1:38:03information and hardly anybody actually

1:38:08gathers it

1:38:09and puts it to good use

1:38:12um i think that's it thank you very much

1:38:14for listening thank you

1:38:24hello good evening mayor city staff my

1:38:26name is rovio antonia with the

1:38:27california apartment association and

1:38:29wanted to

1:38:30be here to share what we've heard since

1:38:32the last meeting on december 18th

1:38:35after that meeting i heard a lot from

1:38:36our concerned local housing providers in

1:38:38el cerrito over the two actions that

1:38:40were taking that evening one was the

1:38:42inclusion of the rent trigger in their

1:38:43relocation assistance ordinance and the

1:38:46just cause eviction

1:38:48after i spoke with them they were all

1:38:49taken aback by the sudden decisions that

1:38:51um because neither one of them was on

1:38:53the agenda for an actual formal proposal

1:38:55they were concerned about the lack of

1:38:57process when the council discussed

1:38:59relocation assistance it was

1:39:00specifically centered around the

1:39:02triggers of when a unit is redeveloped

1:39:05or taken permanently taken out of the

1:39:07market

1:39:08the

1:39:09trigger regarding the rent increase 20

1:39:12was um not included in the staff report

1:39:14nor in the debate

1:39:15had this trigger been fully vetted i

1:39:17believe stakeholders would have shared

1:39:18with you that adding that um trigger is

1:39:21a form of rent control since you are

1:39:23setting a cap on the um allowable rents

1:39:27that

1:39:28property owners can take unless they pay

1:39:29the relocation penalty

1:39:31a lot of you in the past have talked

1:39:33criticized some policies and have made

1:39:35some reservations regarding rent control

1:39:38and because of the inclusion of this

1:39:40rent trigger i believe that the

1:39:41ordinance now is completely incompatible

1:39:44and it's got some provisions that's no

1:39:45longer um

1:39:47meet the needs of the original intent

1:39:50um

1:39:51on the just cause eviction your local

1:39:52housing providers are extremely

1:39:54concerned about this and that the

1:39:56council went ahead and approved this

1:39:58without proper

1:39:59discussion with the community

1:40:02just cause has an extremely negative

1:40:04impact on housing providers and a brief

1:40:06description on the agenda on the general

1:40:08topic of housing unfortunately does not

1:40:10constitute proper public noticing and

1:40:12the 11th hour of this approval is not

1:40:14good public policy making

1:40:17last month

1:40:18most of you expressed support in taking

1:40:20a careful approach because you didn't

1:40:22want to hurt

1:40:23your community create division within

1:40:24your community and hurt the mom and pop

1:40:26housing providers in your city which are

1:40:28over 80 percent

1:40:30the case

1:40:31moving forward with any type of

1:40:33relocation assistance tonight with this

1:40:34rent trigger and the just cost eviction

1:40:36is not consistent with that careful

1:40:38data-driven approach

1:40:39um that you were advocating for we

1:40:41believe the staff has done a wonderful

1:40:43job balancing the needs of all

1:40:44stakeholders and available city

1:40:46resources um when they proposed the

1:40:48ordinances last month please consider

1:40:50the work that they've already done and

1:40:52allow them to collect the necessary data

1:40:54to fully assess the policies that is

1:40:55right for el cerrito

1:40:57this will allow

1:40:59to protect the city and the taxpayers

1:41:00from costly problematic

1:41:02bureaucratic programs and prevent

1:41:05creating animosity between property

1:41:07owners and their renters

1:41:08thank you all again for the time that

1:41:10you spent on this issue um

1:41:12you know we understand how hard this

1:41:14topic is for you to balance everybody's

1:41:17needs and we all wish that we have the

1:41:18magic wand to solve the problem but we

1:41:21don't so the best thing we could do

1:41:23right now is be civil about this and

1:41:24really work together on coming up with

1:41:27solutions that are reasonable equitable

1:41:29and sentenced not punitive thank you so

1:41:31much

1:41:42good evening madam mayor members of the

1:41:44council and staff my name is jeff wright

1:41:47i'm an el cerrito resident

1:41:49there's been a tremendous amount of

1:41:50discussion about just cause i know

1:41:52that's a very important issue to

1:41:54many people

1:41:56interestingly enough

1:41:58just causes oftentimes a precursor to

1:42:01full-blown

1:42:03rent control

1:42:04and i know that not all of you

Advocates pressed for an interim cap and questioned the process.

Robin Mitchell read the Human Relations Commission's resolution, including a permanent board and a citizen-led task force on tenant protections, and said a mom-and-pop landlord “doesn't mean they're a good landlord.”

Howdy Goudey urged a “temporary moratorium to allow us the time and safe space to have this discussion without harming any more tenants,” citing the Human Relations Commission's recommendation, and said that while most landlords were fair, “these regulations are about constraining bad actors.” No reasonable landlord, he said, should be concerned.

Sherry Drobner cited Santa Cruz, which on 9 January reinstated just cause and relocation, with increases above 3.5 percent in year one and 7 percent in year two triggering it.

Roby Lynn Antonio of the California Apartment Association said local housing providers had been “taken aback by the sudden decisions” in December: the 20 percent trigger had not been in the staff report, and just cause had not been on the agenda.

Ilana Clark, who owns a duplex in Richmond, warned of just cause's unintended consequences but called a rent registry “a great idea.”

Antonio argued the rent trigger was “a form of rent control” and asked the council to let staff collect data before acting. Jeff Wright called just cause “oftentimes a precursor to full-blown rent control.”

Note

A speaker cites Santa Cruz's January ordinance, which triggers relocation above 3.5 percent in year one and 7 percent in year two; the apartment association says the December additions came without proper notice.

10 Perfection the enemy of the good captions 2700–3099

1:42:06necessarily want full-blown rent control

1:42:08but i'm sure that there are several here

1:42:10who would

1:42:11prefer to have a full-blown rent control

1:42:13ordinance

1:42:15so since that

1:42:17is a possibility down the road

1:42:20and our neighbor richmond hasn't been

1:42:22invoked in the discussion i just thought

1:42:24it would be interesting to share a

1:42:25little information with you about what

1:42:27it might look like and as how it looks

1:42:30in richmond

1:42:31i pulled some information from the

1:42:34richmond rent program

1:42:362017-2018 annual report

1:42:40their budget per their report 2.4

1:42:42million dollars

1:42:44number of employees in richmond in the

1:42:46rent department 13 people i think that's

1:42:49larger than the planning department

1:42:51here's an interesting statistic

1:42:532206 richmond households were served

1:42:56with the termination of tenancy notice

1:42:58in 2017 approximately 88 percent were

1:43:02for non-payment of rent so for those

1:43:05terminations of tennessee that took

1:43:07place just about nine out of ten were

1:43:10for non-payment of rent

1:43:12here's something i found interesting too

1:43:14they've created this huge very expensive

1:43:17bureaucracy

1:43:18which i believe is siphoning money from

1:43:21the general fund in the city of richmond

1:43:24i was just checking to see when their

1:43:25next regular meeting was going to take

1:43:27place it was scheduled for january 16th

1:43:30which is tomorrow but they had to cancel

1:43:32it due to

1:43:33a lack of quorum for the rent board

1:43:36tomorrow

1:43:38looking at some additional statistics

1:43:41we know in the last election proposition

1:43:4310 was on the ballot and that was a

1:43:45measure to repeal costa hawkins

1:43:48that was soundly defeated by the voters

1:43:50in california

1:43:52even speaking more locally

1:43:55right here in our area

1:43:57the 8015 candidate that's a strong

1:44:00backer supporter and pro and proponent

1:44:02of rent control soundly defeated

1:44:05former mayor of richmond who was

1:44:08at the forefront of rich rich controlled

1:44:10in richmond ran for lieutenant governor

1:44:12soundly defeated

1:44:15the vice mayor of the city of richmond

1:44:17who challenged the current mayor tom

1:44:19butt

1:44:21very strong proponent of rent control

1:44:22the challenger soundly defeated

1:44:26the

1:44:27rpa majority on the city council in

1:44:29richmond proponents of rent control

1:44:32no longer exist

1:44:34so i know rig control is important to a

1:44:36lot of people but as the facts have come

1:44:38out and more information has come

1:44:40forward especially

1:44:42our neighbor richmond the dynamic seems

1:44:44to be changing and shifting a bit i

1:44:48appreciate the efforts that the staff

1:44:50has put forward particularly melanie

1:44:52minton aisa shuri in

1:44:56dealing with this issue and i would

1:44:57strongly encourage

1:44:59the council

1:45:01to accept the recommendations that the

1:45:04staff has brought forth because they're

1:45:05very much in tune and they've worked

1:45:07diligently to collect

1:45:10proper information memorize your

1:45:11comments thank you

1:45:17the next speaker is jeffrey levin

1:45:20followed by peter pan

1:45:26good evening my name is jeff levin i'm a

1:45:2829 year resident of el cerrito and

1:45:30policy director with east bay housing

1:45:32organizations

1:45:34let me say first that we're pleased to

1:45:35see that just cause and a rent registry

1:45:38are

1:45:38on the table for discussion

1:45:41but not happy that this is being used as

1:45:44justification for not taking any action

1:45:46at all

1:45:48tonight we're disappointed that this

1:45:50means further delays and that tenants

1:45:52will remain unprotected until some

1:45:54unspecified future date tonight's

1:45:57recommendations frankly feel like

1:46:00back-peddling and future delays as we

1:46:03let perfection become the enemy of the

1:46:05good

1:46:07we are confused as to how development of

1:46:09just cause

1:46:10policies would require changing the

1:46:12other ordinances in particular we don't

1:46:15understand staff's argument

1:46:17that the need for a 90-day notice

1:46:19provision in the relocation ordinance

1:46:22would be eliminated if just cause was

1:46:24passed that would only be true if all of

1:46:27the triggering factors in the tenant

1:46:29relocation ordinance

1:46:32are

1:46:34not considered to be just cause and

1:46:36therefore not grounds for eviction but

1:46:38if they are just causes for eviction

1:46:40tenants will still need notice and

1:46:42relocation provisions so um it's not

1:46:45clear to us how just cause would

1:46:46eliminate the need for that

1:46:49notice

1:46:51and i think it's pretty likely that

1:46:53those causes

1:46:54will be considered just cause

1:46:56particularly demolition and other forms

1:46:58of removing rental units from the market

1:47:00since the ellis act will pretty much

1:47:02require you to allow that

1:47:05nor do we see how a future rental

1:47:07registry would in any way affect

1:47:09the measures that are before you

1:47:11we are similarly concerned that staff's

1:47:14proposing to exclude single-family homes

1:47:16and new construction from the relocation

1:47:18ordinance leaving a substantial share of

1:47:20el cerrito tenants again with

1:47:22no protection from excessive rent

1:47:24increases and the mere threat of

1:47:27litigation with no um basis in law the

1:47:30city attorney has said they cannot find

1:47:32any

1:47:33statute or case law to back this up that

1:47:35this violates costa hawkins that should

1:47:38not be grounds for taking something off

1:47:40the table

1:47:41and we do want to note santa cruz just

1:47:43passed

1:47:44a relocation ordinance and they did not

1:47:47exclude units that are exempt from costa

1:47:49hawkins

1:47:50we

1:47:51understand and share the council's

1:47:53concern about protecting mom and pop

1:47:55landlords from excessive costs but we

1:47:58really wish we were hearing an equal

1:48:00amount of concern about the cost to

1:48:02tenants of excess of rents and the risk

1:48:05of displacement we need to be thinking

1:48:08about the costs not just to our

1:48:09landlords but to our tenants as well and

1:48:12remember that those costs mean being

1:48:15forced out of el cerrito

1:48:17some of you have expressed concern about

1:48:19not creating barriers to new development

1:48:21um we share that we are strongly

1:48:23supportive of the development that el

1:48:25cerrito is doing but i want to point out

1:48:27that in just three years you have hit

1:48:29150 percent of your arena goal for above

1:48:32moderate income housing

1:48:34that goal was for an eight year period

1:48:37similarly you were bumping up against

1:48:40the limits in the um san pablo specific

1:48:42plan which is why the eir may have to be

1:48:44revised to allow you to produce

1:48:47more units so we're not in danger of

1:48:49discouraging new development here all of

1:48:51this underscores what we've been saying

1:48:54yes we should take time to figure out

1:48:56what our long-term policies are but we

1:48:58need immediate protection for tenants

1:49:00please consider again having an interim

1:49:04protection while we move towards these

1:49:06final things otherwise we just leave

1:49:08tenants at risk and exposed to come to

1:49:11the market thank

1:49:12you in the final speaker on this item

1:49:15peter pan

1:49:20uh thank you everybody for

1:49:22uh giving me the opportunity to speak

1:49:25i am

1:49:26a was a river resident for over 20 years

1:49:31and i have been working for almost 30

1:49:33years as a real estate broker i deal

1:49:35with a lot of tenant and landlord issues

1:49:38i also built house in north cerrito too

1:49:41so um i'm on the ground so i

1:49:45you have my phone number if you really

1:49:47really need some input from what's

1:49:49happening out there i would be happy to

1:49:51offer my my tastes

1:49:54um

1:49:55in 2017

1:49:57el saluto city council adopt

1:50:00california state's managers

1:50:03to

1:50:03make

1:50:05global accessory units easier

1:50:08and this is the right direction to take

1:50:11because

1:50:12the bottom of the problem is that we

1:50:14need more

1:50:15[Music]

1:50:18residential units

1:50:20however this rain control thing

1:50:22especially for the just course

1:50:25or cure whatever incentive that people

1:50:27get

1:50:29by you know tributes accessory units

1:50:36just cause eviction in plain language

1:50:39is that you it's almost impossible

1:50:42to evict anybody

1:50:45except non-payment of rent

1:50:48so as as people mentioned most of the

1:50:51landlords in north cerritos are

1:50:53mom-and-pop properties they probably

1:50:55live in one unit they run the next unit

1:50:58to a

1:50:59people

1:51:00adventure or they have a single family

1:51:02house they have an inline roommate they

1:51:05have people live next door to them

1:51:06selling their garden and everything

1:51:09but which just cause control

1:51:12just that just cause eviction

1:51:15that

1:51:16you is impossible to get rid of any bad

1:51:18tenants and they will put your family

1:51:21everything in

1:51:22at risk

1:51:23if you are

1:51:25not lucky enough to get a bad ones

1:51:27um

1:51:29just cause efficient just to turn a

1:51:32regular mutual benefit commercial

1:51:36contract into a

1:51:38tremendous risk

1:51:40for a landlord

1:51:42and

1:51:43so

1:51:44no wonder that in san francisco the 10

1:51:47of the london earnings

1:51:49or

1:51:5040 000 rental units are taken out of the

1:51:53market because of

1:51:56essentially due to just cost efficient

1:51:58because people just can't deal with all

1:52:00this

1:52:01you know risks

1:52:03so

1:52:04think about this you know

1:52:06um i want it everybody has good

1:52:08intentions you know wants to do the

1:52:10right thing

1:52:11but

1:52:12there's the same goals that

1:52:15the the world

1:52:16you know the relative to the graves are

1:52:19paved with good intentions

1:52:21think about the the you know the uh

1:52:24consequences of unintentional

1:52:27consequences we are such a small city

1:52:30and we was considering

1:52:33establish a full brown rain control

1:52:36ordinance

1:52:37to regulate

1:52:3970 80 percent money probably landlords

1:52:42as the gentleman just mentioned 2.3

1:52:44million dollar budget 30

1:52:47full full-time you know stuffs please

1:52:50you know consider and

1:52:53i hope that after that sorry my end

1:52:56thanks

1:52:59right are there further

1:53:01questions or discussion from the council

1:53:06go ahead mayor pro-tem thank you

1:53:09again i want to

1:53:11thank staff for the work that you've

1:53:13done on the ordinances and putting them

1:53:15together and in there i want to

1:53:17acknowledge that they're in a shape that

1:53:19we could pass tonight

1:53:21um given the fact that the

1:53:24ordinance that uh the the displacement

1:53:27uh

1:53:28the relocation assistant ordinance

1:53:30would be administered uh through a

1:53:34uh through

1:53:35to

1:53:36avoid the conflict with costa hawkins

1:53:38through the administration process so so

1:53:40i want to thank you and acknowledge that

1:53:43your work is something that we could

1:53:44move forward on tonight

1:53:48the best strategy

1:53:50for el cerrito is one that promotes

1:53:52long-term property ownership

1:53:55and investment

1:53:57maintenance

1:53:58and long-term tenancy

1:54:02the city benefits from stable housing

1:54:04for both the owner

1:54:06and

1:54:07the renter

1:54:11there there is a perspective that as a

1:54:13council member

1:54:14i could be focused on revenue for the

1:54:16city

1:54:18uh which would make me interested in

1:54:20promoting sales of properties and

1:54:23increasing the property tax revenue that

1:54:25we would get as a result of

1:54:27re-baselining the property

1:54:30the prospect of new affluent tenants and

1:54:33their disposable income generating sales

1:54:36for el cerrito

1:54:37really a nice prospect

1:54:41however our mission statement

1:54:44the city of el cerrito serves leads and

1:54:47supports

1:54:48our diverse

1:54:50and transit-rich community by providing

1:54:53exemplary and innovative services public

1:54:55places and infrastructure ensuring

1:54:57public safety and creating economically

1:55:00environmentally sustainable future

1:55:04leads me to find try and find another

1:55:06solution

1:55:08this last weekend i was listening to the

1:55:10radio and there was a piece on barbara

1:55:12charlene jordan a congresswoman from

1:55:15georgia in the 70s

1:55:17who chaired the commission on

1:55:18immigration which is why they were

1:55:19covering her the immigration issues that

1:55:21are out there

1:55:23however uh

1:55:25the article attributed a quote to her

1:55:27that i researched and couldn't find the

1:55:29precise quote

1:55:31the

1:55:32paraphrase of the quote that i heard

1:55:35is that it's a legislators have a moral

1:55:37imperative to compromise

1:55:42in my limited research i did find

1:55:45this quote

1:55:47a good compromise

1:55:49a good piece of legislation

1:55:52is like a good sentence

1:55:54or a good piece of music

1:55:57everybody can recognize it

1:55:59they say

1:56:00huh

1:56:01it works

1:56:03it makes sense

1:56:07so although

1:56:08i've established that we could pass

1:56:10these tonight i've heard the uh i've

1:56:14heard the sentiment from my partners

1:56:15here

1:56:17that

1:56:18it's better for us to take the time

1:56:21to potentially work on the full package

1:56:23to develop a solution that works for el

1:56:26cerrito

1:56:28mr stugner spoke to try and get us

1:56:31dialogue time for dialogue not just a

1:56:33work session but dialogue

1:56:35and that should potentially fit within

1:56:37the timeline that we've already been

1:56:38talked about as the mayor has pointed

1:56:41out and as one of the one of the

1:56:42speakers several of the speakers pointed

1:56:44out

1:56:45we are

1:56:46running a foul of timeline

1:56:49and

1:56:50somewhere in my notes

1:56:52it's very clear of the psychological and

1:56:55physical problems that come from

1:56:57uncertainty

1:57:01i want to thank everybody for their

1:57:02comments on just cause tonight but be

1:57:04very very clear we were not considering

1:57:06just cause ordinances tonight okay so

1:57:09just be really clear we're actually

1:57:11talking about just cause for a future

Speakers compared Richmond and warned about delay and supply.

Jeff Wright described Richmond's rent program: a $2.4 million budget, 13 staff, and 2,206 termination notices in 2017, about 88 percent for non-payment.

Jeff Levin of East Bay Housing Organizations: staff's recommendation “frankly feel[s] like back-pedalling and future delays, as we let perfection become the enemy of the good.”

They asked for “an equal amount of concern about the cost to tenants of excess rents and the risk of displacement.”

Peter Pan, a real estate broker, warned that in San Francisco just cause and related rules drove owners to remove units, and cited the 2017 ADU rules as the right direction — more supply.

Lyman, opening Council discussion: “the best strategy for El Cerrito is one that promotes long-term property ownership and investment, maintenance and long-term tenancy.”

He said the ordinances were ready to pass, but heard his colleagues' preference to take time on a full package, citing a legislator's “moral imperative to compromise.”

Significant

Housing advocates call the deferral “back-peddling and future delays as we let perfection become the enemy of the good” and ask for interim protection.

11 Not realistic under Costa-Hawkins captions 3100–3499

1:57:13um

1:57:14for me and and i actually started this

1:57:16process back in august thinking oh we

1:57:18can potentially do something to have

1:57:20felt to preserve affordable housing in

1:57:22our community and i've come to realize

1:57:24through costa hawkins that that's not

1:57:26something that's realistic

1:57:28what is more realistic

1:57:31and i focus on is displacement

1:57:35we need to find a tool that limits

1:57:37displacement of tenants

1:57:39because those are the tenants who add to

1:57:41our current diversity of community which

1:57:43is what we value in our mission

1:57:45statement

1:57:48so thank you for your your comments on

1:57:50just cause i've got a few myself

1:57:53um

1:57:55because it because for me we need to be

1:57:56focused on different on displacement

1:58:00and so in some ways

1:58:02and maybe it's not legal

1:58:04but the solution should benefit

1:58:05long-time property owners and long-time

1:58:08tenants

1:58:10and not necessarily benefit short-term

1:58:13property owners and short-term tenants

1:58:17because it's

1:58:18the culture we have now that we're

1:58:20trying to preserve protect

1:58:22production's the third p right

1:58:24um

1:58:26so

1:58:28maybe there that means that the tool we

1:58:30put in place the

1:58:31for just cause is we have to find

1:58:33something that avoids and two or three

1:58:35people talked about this a consequence a

1:58:37real consequence of just cause is the

1:58:39tougher screening at the application

1:58:41phase

1:58:42and so maybe we need to have a just

1:58:44cause that is

1:58:46not

1:58:46what everybody has else has but

1:58:48potentially does preserve some of the

1:58:52provisions

1:58:53in the current eviction

1:58:55laws

1:58:56that you know we

1:58:58that are there

1:59:00portland

1:59:01has

1:59:02a

1:59:05what is it called i've got it flagged

1:59:07hang on portland has essentially a

1:59:11a no cause

1:59:12eviction

1:59:14clause

1:59:15and

1:59:16uh it allows you to

1:59:19evict no no cause eviction trigger but

1:59:22no no cause eviction clause but it

1:59:25triggers relocation ordinances and i

1:59:27understand uh council member abelson

1:59:30that you you are concerned about the

1:59:32cost of paying the relocation assistance

1:59:36in most cases the relocation assistance

1:59:38is

1:59:39not only have we established tonight

1:59:41that it has very limited triggers but in

1:59:44most cases

1:59:45it is going to be related to the sale

1:59:48value of the land and

1:59:51the people that are either about to sell

1:59:54that property as a result of it being

1:59:55vacant or the people that just bought

1:59:57that property have probably factored in

1:59:59some of those costs into it so in

2:00:02addition to ms abelson's request for

2:00:06calculating the

2:00:08and i have this written down somewhere

2:00:10too calculating the urban development

2:00:12fair market rate for contra costa county

2:00:15uh as the the monthly displacement cost

2:00:17of the potential displacement cost can

2:00:19we estimate the sale

2:00:21value of a unit that that that that

2:00:24would be uh applying to

2:00:31one of the things that i certainly want

2:00:33to point out

2:00:36has to do with

2:00:38where we are

2:00:40um

2:00:41in december i talked about the book how

2:00:43to kill a city

2:00:45mr vidalia has it

2:00:47where gentrification is a bad word

2:00:50and in conversations with co-workers and

2:00:52and people in the community i'm reminded

2:00:54that transition

2:00:56is a in a community is natural

2:00:59this council and i'm as part of it we

2:01:01have adopted plans and policies to

2:01:04promote transition along san pablo

2:01:06avenue so to say that transition isn't

2:01:10isn't something that is going to happen

2:01:12is it would be foolish

2:01:14it's the rate of transition and the

2:01:16consequences of transition that we are

2:01:18struggling with now

2:01:22the insertion of new housing in el

2:01:24cerrito is creating an incentive for

2:01:26property owners of older housing stock

2:01:29to increase their rates

2:01:33as older units approach market rate

2:01:37those renters

2:01:40are removed from the marketplace and the

2:01:42demand for new units

2:01:45goes away

2:01:47so

2:01:48the the transition that we're promoting

2:01:51along san pablo avenue that is trying to

2:01:54bring in market rate

2:01:57has a secondary problem if we don't

2:01:59somehow protect the the older housing

2:02:03units and the

2:02:04rental rates that those are there

2:02:06because what ends up happening is people

2:02:08who find el cerrito

2:02:11because of metro 510

2:02:13or

2:02:14one of the other projects that's in town

2:02:17say you know what i'm going to see what

2:02:18else is available in el cerrito and then

2:02:20they pick

2:02:21another unit that's not quite at market

2:02:25rate

2:02:26and that person is now no longer looking

2:02:29at a market rate project that's on san

2:02:31pablo avenue and they've taken they've

2:02:34given cause to displace somebody who's

2:02:36in an affordable housing today because

2:02:38they're there demanding or accepting the

2:02:41market the

2:02:43increased rates on older houses

2:02:48i could talk about adam smith and his

2:02:50economics but i will skip that

2:02:53um

2:03:01the issue for me is displacement

2:03:04um

2:03:06i mean there's many programs we could be

2:03:08looking at there are some programs for

2:03:10example that could provide legal

2:03:12services to both landlords and tenants

2:03:15so that

2:03:16our

2:03:18small economically challenged business

2:03:20owners

2:03:21and our

2:03:22economically challenged renters

2:03:25both

2:03:26receive

2:03:27services

2:03:28um i think

2:03:30the mayor said it well last time

2:03:32i'm i'm not looking for a solution that

2:03:34penalizes one group or even pits one

2:03:37group against the other i'm looking for

2:03:39a solution that

2:03:41achieves and now i've actually figured

2:03:43out what i'm trying to achieve i'm

2:03:45trying to achieve

2:03:48trying not to displace our current

2:03:50population

2:03:51and that

2:03:55you know our current population is going

2:03:56to move they're going to transition

2:03:57they're going to go on to where they

2:03:58need to go

2:04:00but we need to find

2:04:02ways to to allow them to stay in place

2:04:05while

2:04:06still affording

2:04:08our

2:04:09property owners their right

2:04:12to fair reasonable return on net

2:04:14operating income

2:04:15um so that

2:04:17that

2:04:18and i i don't

2:04:20i think that through

2:04:22the ordinances that we're looking at if

2:04:23we can

2:04:24protect the displacement without

2:04:26necessarily going all the way as mr

2:04:29wright has

2:04:32suggested all the way to rent control i

2:04:34think we can use the ordinances that

2:04:36we're looking at to achieve

2:04:39the goal at least that i am now focused

2:04:41on which is limiting displacement of the

2:04:43fabric that makes el cerrito the place

2:04:46that we all want to live in

2:04:55and the last p is course production

2:04:58and that's something that

2:05:00i learned today that we are getting some

2:05:03additional units we've got the guitar

2:05:04center under construction we've got the

2:05:06el dorado houses under construction

2:05:08we've got a project later today on our

2:05:12agenda for more projects so if we can

2:05:15continue to do production

2:05:18i think that would be a great way to

2:05:20relieve some of the stress on the older

2:05:22housing stock as we take those people

2:05:25who can afford the higher rents and put

2:05:28them in market rate housing so thank you

2:05:35any additional

2:05:36questions

2:05:38discussion

2:05:41um

2:05:42my my assumption is is that we're going

2:05:44to be having more discussion

2:05:47so that we don't really have to

2:05:50have our mind all made up at this point

2:05:53in time and in particular i think we

2:05:57need to include the public i was

2:06:00kind of

2:06:01was very concerned about the fact last

2:06:03time

2:06:04we seemed to be just rushing through

2:06:07without

2:06:08comment

2:06:10from

2:06:13council members

2:06:15and so that we give every uh

2:06:20everyone an opportunity to express their

2:06:22opinion

2:06:24and um i heard a comment made by a

2:06:26member of the audience tonight

2:06:29that they think when they get before a

2:06:31council meeting

2:06:33that there is a more limited opportunity

2:06:35to speak and i actually agree with that

2:06:37comment and the reason i agree with it

2:06:40is that we have a thing called the brown

2:06:42act

2:06:43and so we're we're put under certain

2:06:46criteria about what we can and cannot do

2:06:49however if there were a public hearing

2:06:53in front of

2:06:55i don't know if public hearings the

2:06:56right word but if there were a meeting

2:06:58in front of

2:06:59with staff

2:07:00then i believe and somebody could

2:07:02correct me over here if they think i'm

2:07:04wrong

2:07:05that there can be a more open

2:07:08a freely open

2:07:10discussion um it's just that we can't be

2:07:13there because of the the brown act and

2:07:16then when it um gets here

2:07:19and it doesn't mean there has to be a

2:07:20lot of

2:07:21time in between but

2:07:24then when it gets here we can

2:07:27do as we are required by law to do

2:07:30follow the brown act

2:07:32and um

2:07:33but some of these

2:07:35what i'll call rough edges of any

2:07:36thought process could be kind of worked

2:07:39out in those um

2:07:41public meetings in front of

2:07:43staff

2:07:44looking at the city attorney if i could

2:07:47for a minute

2:07:48hello

2:07:49this guy sorry we were

2:07:51talking about am i it's what i'm saying

2:07:53true do you think did you

2:07:55about having meetings in front of staff

2:07:57so

2:07:58and and there being more free a more

2:08:00free discussion

2:08:02there were a significant number of

2:08:04public workshops held prior to the

2:08:06december 18th meeting so yes topics i

2:08:09don't know that yes um but we

2:08:12you are correct that that that would

2:08:14result in more dialogue i don't know

2:08:15whether or not members of the public

2:08:17feel that that that discussion should be

2:08:19with someone other than staff

2:08:21but um but what the city manager and i

2:08:24were just discussing is that it's it's a

2:08:26challenge because we've heard two things

2:08:28from the council which is

2:08:30maybe there should be more public

2:08:31discussion but we'd also like to get

2:08:33this done quickly so that we can get

2:08:34these protections in place

2:08:36when you also factor in the amount of

2:08:38time to take

2:08:39to to perform research and convert

2:08:42research into proposals and convert

2:08:44proposals into recommendations to the

2:08:46council and convert direction from the

2:08:48council into actual ordinances

2:08:50i'm not trying to devalue

2:08:53public

2:08:54public discussion in that process but it

2:08:56does add additional time and so it's

2:08:58just a challenge for us to

2:09:00respond to both pieces of direction from

2:09:03the council

2:09:05okay i hear what you're saying but but

2:09:07it is okay

2:09:09i hear what you're saying um

2:09:11it but it is an option right yes it is

2:09:14absolutely process-wise it's an option

2:09:15absolutely

2:09:16it's just that we and i think that if

2:09:18the majority of the council wanted for

2:09:20there to be public workshops about it

2:09:21staff would absolutely do that maybe but

2:09:23it would shift it would shift the

2:09:24timeline maybe even a workshop

2:09:28just as the

2:09:30members of the public get frustrated by

2:09:34instructions

2:09:36caused by the brown act i think council

2:09:38members do too

2:09:40it's kind of frustrating when we

2:09:42are

2:09:44unable to have an open dialogue

2:09:48about certain things um

2:09:51so i was just trying to figure out if

2:09:52there was a way to

2:09:56help take care of that with that was

2:09:58legal

2:10:02then i have a question

2:10:04uh there's just another question i guess

2:10:07the um

2:10:11if you had um

2:10:14the

2:10:15thing where there's a

2:10:19say a five months rent penalty for

2:10:23because you raised the

2:10:26rent more than

2:10:2720 over two years or whatever the

2:10:29numbers were

2:10:31um

2:10:32then

2:10:33um

2:10:37what

2:10:38um

2:10:39forgetting i was going to word this

2:10:42the um what i'm

2:10:45wondering about is if you had a lease

2:10:49okay and the lease ended

2:10:54can

2:10:55that carry you know and let's say there

2:10:57were a lease and

2:10:59and the

2:11:00the landlord said at the end of the

2:11:02lease

2:11:04they just want to terminate it

2:11:06without specifying what any reason say

2:11:10can they just do that

2:11:21um sorry i'm trying to think i'm just

2:11:23pausing to think through the

2:11:25it's a simple question but there are

2:11:27given the overlay of multiple laws i'm

2:11:30just hesit i'm hesitant to give a

2:11:32straight a you know a simple answer to

2:11:34it

2:11:35um

2:11:36at the i i believe though that in the

2:11:39absence of any

2:11:40regulations to the contrary just

2:11:42operating under state law and and

2:11:45typical

2:11:46um lease terms let's say that you're on

2:11:48an initial one-year lease which would

2:11:51normally roll over into a month to month

2:11:54that

2:11:55that the landlord can

2:11:57decide not to continue the tenancy into

2:12:00a month to month but may have to provide

2:12:03um the the typical the state required

2:12:06notices for the termination of the

2:12:08tendency to do that

2:12:10but there's not excuse me that they that

2:12:12that

2:12:14i don't believe that a landlord i

2:12:16i

The Mayor Pro Tem explained how his goal had narrowed.

Lyman: “I actually started this process back in August thinking, oh, we can potentially do something to preserve affordable housing… and I've come to realize through Costa-Hawkins that that's not something that's realistic.”

His new focus: “displacement… a tool that limits displacement of tenants, because those are the tenants who add to our current diversity.”

On change: “transition in a community is natural… it's the rate of transition and the consequences of transition that we are struggling with.”

He also counted on production: Guitar Center and El Dorado under construction, and more to come.

Abelson asked whether workshops in front of staff, outside Brown Act limits, could allow freer discussion; the City Attorney said it was an option, but research, proposals, recommendations and ordinances each add time.

Questions on lease terms followed.

Significant

Lyman: “i've come to realize through costa hawkins that that's not something that's realistic” — so his focus shifts to displacement. “It's the rate of transition and the consequences of transition that we are struggling with.”

12 Most of El Cerrito voted yes on Prop 10 captions 3500–3876

2:12:17i would probably need to to research

2:12:20this to give you a definitive answer i

2:12:22believe that a landlord is not obligated

2:12:24to

2:12:25continue at least past the initial lease

2:12:28term but it may be required to give

2:12:31state mandated notice of the of the

2:12:33decision not to to continue the the

2:12:36tendency beyond the the initial one year

2:12:39in a timely manner yes exactly

2:12:42okay but but they could do it so that

2:12:44they if they wanted to

2:12:46[Music]

2:12:47prove

2:12:50if they were unhappy with the

2:12:51arrangement for any reason

2:12:54then i'm talking about the landlord here

2:12:56then

2:12:57at the end of the lease period or maybe

2:13:0090 days prior to the end of it or

2:13:02whatever the rule would be

2:13:04that they could um

2:13:07just

2:13:08say they just don't want to continue it

2:13:10and that's the end of it so are you

2:13:12talking about under the proposed

2:13:15um relocation assistance ordinance or

2:13:18state law i i'm just realizing that i'm

2:13:20not i'm not sure i don't know what i'm

2:13:22i'm just asking what happens if

2:13:26uh what if i what if i'm the landlord

2:13:28and i don't like

2:13:30but i need to know which law i think

2:13:32that the person plays or whatever you

2:13:35know i don't know anything just kind of

2:13:37anything i don't really

2:13:39i'm not so worried about what it is as

2:13:42well but it is i'm just wondering if it

2:13:44later then has an impact on

2:13:46on some of these other things well but i

2:13:48i'm it did the answer depends a lot on

2:13:51which laws are in place

2:13:55okay so which will make it which way

2:13:59state law would be basically the way

2:14:00that i just explained

2:14:02under the relocation assistance

2:14:04ordinance

2:14:05if they

2:14:06that under the circumstances of the

2:14:08ordinance

2:14:10for example

2:14:11if they were if they were going to

2:14:14convert a residential use to a

2:14:15non-residential use

2:14:17um it had nothing to do with the tenant

2:14:19but they intended to change the nature

2:14:21of the property

2:14:22and the type of property was one

2:14:26that the relocation assistance ordinance

2:14:29applied to so under as currently written

2:14:31not a single family house a multi-unit

2:14:33apartment building

2:14:35and they cho and the landlord chose to

2:14:37convert that from a residential to a

2:14:39non-residential use that would qualify

2:14:42for relocation assistance regardless of

2:14:44the of the other reasons but if that was

2:14:47the the reason i was thinking more that

2:14:49they just weren't going to do anything

2:14:50with it

2:14:55um

2:14:56then

2:14:57under the draft relocation assistance

2:14:59ordinance

2:15:01there if they just terminated the

2:15:02tenancy in the way that was allowed and

2:15:05then left the unit vacant

2:15:08i don't believe that relocation

2:15:10assistance would be required under the

2:15:11ordinances as drafted

2:15:15portland okay yeah so it currently

2:15:17excludes no fault evictions

2:15:20councilmember lyman cited the portland

2:15:23one that includes no fault eviction so

2:15:25again these are all things that we can

2:15:27come back and talk further about um at

2:15:30the study session on the 19th and you

2:15:33let's say that you're renting

2:15:35you were running to a um

2:15:38i'll call a stranger and now you're

2:15:39wanting to rent to your child

2:15:42uh or just have your child live there

2:15:45are those special circumstances those

2:15:47are special circumstances under state

2:15:49law and that's allowed

2:15:51um

2:15:52without it being a

2:15:55so the relocation ordinance as written

2:15:58does not include owner movements

2:16:02does not but it could but we could

2:16:04that's again so let's say that you

2:16:06wanted your kids to move back in

2:16:08with you for some reason

2:16:11then um

2:16:14you could be penalized for that not

2:16:17currently well not currently

2:16:18okay

2:16:22that's that's all my comments

2:16:25thank you

2:16:28so

2:16:30first of all i'd like to say that

2:16:33proposition 10 did not pass in

2:16:35california but

2:16:38the majority of el sardins

2:16:41voted

2:16:42in favor of it

2:16:44and i believe that they voted in favor

2:16:46of it because they believed that the

2:16:48rents

2:16:49are out of control

2:16:51as a statewide problem

2:16:53el cerrito and beyond

2:16:57and i believe that they voted that way

2:17:01because

2:17:03they want to protect

2:17:05the people that are being displaced

2:17:09and

2:17:10i was really surprised to go to the

2:17:12mayor's meeting

2:17:14last week and see the presentation

2:17:17by casa

2:17:18because i found that

2:17:21going to these regional groups i often

2:17:24find that

2:17:25many of our

2:17:27brothers and sisters around the bay area

2:17:29are

2:17:30much more conservative than we are here

2:17:32in el cerrito

2:17:33so i was surprised to see that the

2:17:35association of bay area governments and

2:17:37the metropolitan

2:17:39transportation commission came up with

2:17:41these as their top priorities

2:17:44and they said

2:17:45just as

2:17:47the mayor pro tim lyman said

2:17:50that we have failed to produce enough

2:17:52housing

2:17:53we have failed to produce existing

2:17:56housing and we have failed

2:17:58to protect current residents from

2:18:00displacement

2:18:03now

2:18:05their recommendations they will be

2:18:07taking

2:18:08to

2:18:09our elected officials

2:18:11in sacramento

2:18:12so that hopefully we can get state-wide

2:18:16laws not just city-wide ordinances but

2:18:19statewide laws

2:18:21on these

2:18:22issues their number one element that

2:18:25they came up i will read off the

2:18:27elements quickly

2:18:28element number one

2:18:30just cause for eviction policy

2:18:33element number two a rent cap

2:18:38element number three rent assistance and

2:18:41access to legal counsel

2:18:44element number four

2:18:46remove regulatory barriers to accessory

2:18:49dwelling

2:18:50units element number five

2:18:54minimum zoning near transit

2:18:58element number six

2:19:00good government reforms to housing

2:19:02approval process

2:19:07element number seven

2:19:09expedited approvals and financial

2:19:11incentives

2:19:13for missing middle

2:19:15element number eight unlock public land

2:19:18for housing

2:19:20in element number nine of course like we

2:19:22all do they need funding to

2:19:24finance their compact

2:19:27so once again like i said i was

2:19:29surprised to see

2:19:30that

2:19:32when all of the

2:19:33area elected officials and they brought

2:19:37in others they brought in developers

2:19:39they brought in landlords they brought

2:19:40in

2:19:41a wide group group of people to develop

2:19:45this

2:19:46committee to house the bay area or casa

2:19:51i was surprised with what they came up

2:19:52with together

2:19:56a lot of the things we've talked about

2:19:58here

2:19:59and looks like they're they're willing

2:20:01to go further than what it seems to me

2:20:04this council is willing to do at this

2:20:06time

2:20:08so with that um

2:20:10i know we're going to have a further

2:20:12discussion

2:20:13um

2:20:15and i hope that

2:20:17at the end of our discussion we will

2:20:20have fair return for landlords

2:20:23but ultimately protect our renters and

2:20:25protect

2:20:27as mayor pro tem lyman said the current

2:20:29fabric of el cerrito

2:20:31as it is today

2:20:35so with that i asked the council

2:20:39do we have any further direction sky do

2:20:41we need a specific

2:20:44um

2:20:46motion

2:20:49i just wanted to make sure that council

2:20:51member fidelity had an opportunity to

2:20:53i wasn't sure if you had already if you

2:20:55had made my statement

2:20:57right then we just then if the

2:20:59i mean we've laid out two options for

2:21:01you one is the staff recommendation and

2:21:03so we're proposing that that be made by

2:21:05motion and alternatively as also laid

2:21:07out in the staff report um you could

2:21:09move forward with the ordinances that

2:21:11you introduced at the last meeting so

2:21:13um it's up to the city council but there

2:21:16are two options in front of you

2:21:17do i have a motion

2:21:19well let me let me just ask it

2:21:21let me be clear

2:21:23one of the questions the mayor might be

2:21:24asking is do you need a motion to move

2:21:27this to a date certain

2:21:31um

2:21:32no i mean we're i mean if you if you

2:21:34want to

2:21:35absolutely schedule the the

2:21:38um

2:21:39the study session for the 19th you can

2:21:41but that but it is staff's intention to

2:21:43to do that

2:21:45so i don't i mean it's that is

2:21:47ultimately up to the city council

2:21:48whether or not you want to make it a

2:21:49date certain but there's we've we've

2:21:51checked the council calendar and

2:21:54that is the the main item for business

2:21:56that night

2:22:01i'm going to go ahead and make the

2:22:02motion to move to date certain of

2:22:04february 19 2019

2:22:07move these three items plus whatever

2:22:09other items the staff brings forward as

2:22:11part of their discussion

2:22:14so just to clarify is that

2:22:16the i guess i'm it's actually not moving

2:22:18these ordinances per se to that night

2:22:20because we wouldn't no there's ordinance

2:22:23right so are you i'm maybe now i'm

2:22:25confused about what the motion is like

2:22:28my my question is do we need a motion to

2:22:30to

2:22:31to move these to a to a future time

2:22:34because since we're not necessarily

2:22:35moving them to tonight

2:22:37the three ordinances correct if you want

2:22:40to spec no isn't that the three

2:22:42recommendations if that you're talking

2:22:44about we don't have to have a date for

2:22:46second reason not the three there's no

2:22:48need to so like so let me just clarify

2:22:50that there are and unfortunately now

2:22:52there are there there are two threes

2:22:54there are three items that are listed in

2:22:56the staff recommendation and there are

2:22:58three ordinances there is no requirement

2:23:01to set a date certain for a second

2:23:02reading on the three ordinances

2:23:06and

2:23:08so we if but if the council wants them

2:23:11brought back for potential action you

2:23:14could direct us to bring them back at a

2:23:15future meeting

2:23:17the staff recommendation was to bring

2:23:19them back once we had had

2:23:21held had the study session and gotten

2:23:24direction about whether about the form

2:23:25of the other ordinances that the council

2:23:27had

2:23:28provided direction about it and i see it

2:23:30says by motion those three items were

2:23:33rattled off so

2:23:35i'm more than willing to move that with

2:23:36the amendment that in item three we just

2:23:38say by on

2:23:40uh february 19th okay

2:23:42can i ask for a point of clarification

2:23:47city attorney which is

2:23:50if those ordinances

2:23:52change at all through the study session

2:23:54they would be reintroduced if they

2:23:56didn't change and were brought forward

2:23:58again with the other two after the study

2:23:59session then that would be a

2:24:02a second read and doesn't need to be

2:24:04that's correct so just to

2:24:07state the same thing differently um and

2:24:09i believe this is covered in the staff

2:24:10report but just to make sure

2:24:12um

2:24:13so let's say we get to the 19th

2:24:15council directs on the preparation of

2:24:17just cause eviction and rent registry

2:24:19ordinances hypothetically

2:24:21we would

2:24:23integrate we would prepare those and

2:24:24integrate them with the three ordinances

2:24:26that you have already considered and

2:24:28bring them back and at that point it

2:24:30might be a single long ordinance it

2:24:32might be multiple ordinances but we

2:24:34would actually ask you to

2:24:36introduce the entire package at that

2:24:38time the ones that you'd already

2:24:40introduced would just go away

2:24:42alternatively

2:24:43if you ultimately decided not to move

2:24:45forward with just cause eviction and

2:24:48rent registry ordinances and instead

2:24:50just to pick back up the three that you

2:24:51had already introduced you could just

2:24:53adopt those as already introduced i hope

2:24:56that that's clear that is clear and a

2:24:58third alternative would be that if we

2:25:00want to go forward with rent registry as

2:25:01a independent ordinance it could go for

2:25:04a first and second reading while we do

2:25:06third second reading on these three that

2:25:08are before us tonight yes that is

2:25:10correct

2:25:13so to clarify council member alignment

2:25:14you have made the moving the staff's

2:25:17recommendation by motion to defer action

2:25:19of the three tenant

2:25:21ordinances reaffirm direction given to

2:25:24staff from december 19th plus the

2:25:26direction we gave tonight and direct

2:25:28staff to return with an integrated

2:25:30package of ordinances or for

2:25:32consideration

2:25:34that includes the tenant protection with

2:25:35appropriate amendments as just cause of

2:25:37eviction ordinance and rent registry

2:25:38ordinance discussion uh on february 19th

2:25:43thank you

2:25:44i'll second that

2:25:46a motion by mayor pro-tem lyman and

2:25:49second by

2:25:50council member quinto all in favor aye

2:25:53aye

2:25:54all opposed

2:25:56motion passes

2:26:00all right

2:26:01so next on our agenda

2:26:04houston

2:26:06we have

The last questions and the Mayor's closing framed the deferral.

On lease terms: a landlord need not continue past an initial lease but must give state-mandated notice; an owner wanting children to move back would not currently be penalized.

The Mayor: “Proposition 10 did not pass in California, but the majority of El Cerritans voted in favor of it,” because they believed rents were out of reach.

She read the regional CASA compact's elements — just cause, a rent cap, rent assistance and legal counsel, removing regulatory barriers — noting it was “willing to go further than… this council is willing to do.”

Her hope: “fair return for landlords, but ultimately protect our renters.”

Lyman moved the staff recommendation — defer the three ordinances, reaffirm direction, and return with an integrated package including just cause and a rent registry after the 19 February study session — seconded by Quinto; it carried.

Significant

The Mayor: “proposition 10 did not pass in california but the majority of el sardins voted in favor of it,” and the regional CASA compact is “willing to go further than what it seems to me this council is willing to do.”

13 Owed since before 2012 captions 3877–4199

2:26:07a presentation

2:26:14our annual review of comprehensive

2:26:16financial policy

2:26:28hello your honor i'm actually going to

2:26:30kick off this staff report

2:26:33and and again introduce finance director

2:26:35mark rosai who will be

2:26:37providing you with more detail but i

2:26:38just sort of wanted to

2:26:40um

2:26:42you know kind of frame this a little bit

2:26:43as we start off before you tonight is a

2:26:45recommendation from the financial

2:26:47advisory board regarding updating the

2:26:49city's comprehensive financial policy

2:26:51this policy as you know includes general

2:26:53fund reserves policies provides

2:26:55direction to staff and assures the city

2:26:57council and the public

2:26:59on the processes and the procedures that

2:27:01we take to establish financial stability

2:27:03for the city

2:27:06as you all know we received a

2:27:07presentation in november from the city's

2:27:09auditors that expressed some concerns

2:27:10about the city's finances and we've

2:27:12heard from members of the public that

2:27:14have also expressed concern as we

2:27:16consider on a staff level what our steps

2:27:18forward are within our financial

2:27:19policies we do want to assure the

2:27:21council and the community that the total

2:27:24picture of our financial position is

2:27:25much broader than what was actually

2:27:27appeared as part of the auditor's

2:27:29presentation

2:27:30we do also tonight want to provide you

2:27:32with context around the auditor's

2:27:34remarks and make it clear that the city

2:27:37has been prudent with our funds that

2:27:39we've received city council approval

2:27:41whenever it was required and we have

2:27:43worked ethically to ensure that the city

2:27:45is financially stable

2:27:48as mark will go over in detail in a few

2:27:50minutes the city has always been open

2:27:52and transparent about its financial

2:27:54position

2:27:55anyone can find all of the information

2:27:56that the auditor discussed in our

2:27:58comprehensive annual financial reports

2:28:00also called the kaffir which are found

2:28:02online

2:28:03or here at our city offices

2:28:05we've never shied away from the fact

2:28:07that our budgets have been tight

2:28:09we've always made clear the fact that

2:28:10our reserves have been low

2:28:12with a new auditor and with new

2:28:14guidelines that were issued by the

2:28:15governmental accounting standards board

2:28:17it is true the reserve picture does look

2:28:19different

2:28:20it is also worth noting though that a

2:28:22big reason that our reserves are low has

2:28:25been the result of choices made by this

2:28:27city council to maintain services during

2:28:30the great recession

2:28:31as you all know we were one of very few

2:28:33cities anywhere that did not lay off

2:28:36staff nor cut services to residents or

2:28:38businesses during that time frame

2:28:40we've continued to do even more with

2:28:43even less

2:28:44but these were conscious choices and we

2:28:46continue to make choices to support the

2:28:48services that you and our residents

2:28:51expect

2:28:52yet as you will hear from mark and from

2:28:54members of the fab we do take those

2:28:56audit results very seriously we know

2:28:58that we must work diligently to continue

2:29:00to build our reserves and to provide

2:29:02financial sustainability we want to make

2:29:04sure that we do tell the whole story and

2:29:06that we all understand what we can do

2:29:08together to move forward so with that

2:29:10i'd like to invite mark to begin his

2:29:12presentation

2:29:31director

2:29:32i'm here to present you

2:29:35changes to the uh to the city's

2:29:38comprehensive financial policy as

2:29:40proposed by the fab

2:29:42no action is requested at this time the

2:29:44policy presentation is for information

2:29:46only and to gather feedback from council

2:29:49members and to take questions and

2:29:51provide clarification on the rationale

2:29:53and processes that can that was followed

2:29:55by the fab

2:29:57members of the faber here the chair of

2:29:59the fab

2:30:00uh to provide additional color

2:30:02as needed

2:30:04staff will address any comments or

2:30:06changes

2:30:07and bring the policy documents back with

2:30:09changes if any for adoption at a later

2:30:11date

2:30:14but before i do that

2:30:16as the city manager pointed out i'd like

2:30:18to touch on matters that are german to

2:30:21fund balance which is one of the serious

2:30:24components of the changes that are being

2:30:25proposed tonight

2:30:27as you know back in november of 2018

2:30:31there was a discussion on fund balance

2:30:33and the impact of monies that were owed

2:30:36to the general fund

2:30:38and the presentation that i have for you

2:30:40which you have copies of at this point

2:30:42takes a historical view of that fund

2:30:44balance

2:30:45and looks at balances that are owed to

2:30:47the general fund and proposes

2:30:50mitigations

2:30:51resolutions to some of those balances

2:30:52that are historically things that have

2:30:54come through to us

2:30:55since before 2012

2:30:57and are pretty much

2:30:59related to the resolution of the rda so

2:31:02that's pretty much where i'm going with

2:31:03this presentation here

2:31:07so getting on with my powerpoints

2:31:09the background is that the city brings

2:31:11back the comprehensive financial policy

2:31:12periodically for review and change the

2:31:15last time was back in 2016 when we

2:31:18modified in fact we completely gutted

2:31:21the debt service side of the policy

2:31:24and this was prior to our refunding of

2:31:26various debt instruments so that was the

2:31:29major major change that happened back in

2:31:312016

2:31:32and since then we haven't made any

2:31:34changes to the policy except at this

2:31:36point where we have i would say

2:31:38uh two or three major changes that we

2:31:40are proposing that the fab is proposing

2:31:42related to fund balance and general fund

2:31:44reserve ratios

2:31:46so i plan to go through

2:31:49a few slides with you and share with you

2:31:51information pertaining to monies or to

2:31:53the general fund from the other funds

2:31:55which was presented to us by the article

2:31:57back in november

2:31:59i would also review a five-year transfer

2:32:01history from the other funds to the

2:32:03general fund

2:32:04review proposed disposition of balances

2:32:06by a fiscal 2019 year end which is june

2:32:1030th 2019

2:32:12review general fund balances statistics

2:32:14for the last five years

2:32:16and then jump into the review of

2:32:18comprehensive policy uh

2:32:22changes so my first slide here i would

2:32:25like to draw your attention to the

2:32:27shaded column that's highlighted there

2:32:29within the box

2:32:31the 2017 auditor balances owed

2:32:35from the different funds to the general

2:32:37fund

2:32:38for a total of 1.6 million dollars

2:32:42and you will note that a majority of

2:32:44these balances pertain to the rda going

2:32:47back even before 2012. so for example

2:32:49the city housing trust fund

2:32:51owes 250 352 to the general fund and

2:32:55you'll notice that there have not been

2:32:57any enough fund transactions on that

2:32:59particular fund since 2012 which tells

2:33:01us that it actually originates much

2:33:03before 2012. and the same applies to a

2:33:06few of the other funds

2:33:08we also have operating funds such as the

2:33:09integrated waste management fund that

2:33:12has made consistent transfers to the

2:33:14general fund and therefore it's not

2:33:16unusual to have the balance that we had

2:33:18as funds owed to the general fund back

2:33:20in 2017. in fact the amount that's

2:33:22currently owed has dropped to 317

2:33:26967.

2:33:28the msc has made transfers to the

2:33:30general fund in the past for various

2:33:32reasons and the amount owed since then

2:33:34is only twenty thousand

2:33:36and the other non-major governmental

2:33:38funds periodically make these transfers

2:33:39the inner fund transfers to account for

2:33:42transactions during the operating cycle

2:33:44at the close of the fiscal year that

2:33:46leaves amounts that are owed to the

2:33:48general fund and so that completes the

2:33:50first four five columns of historical

2:33:53general fund transfers

2:33:54so the column that i'm looking at here

2:33:56is the balance

2:33:57owed to the general fund as alluded to

2:33:59by the auditors

2:34:01and of the 1.6 million approximately

2:34:03half of it pertains to the rda

2:34:06such as the city housing trust

2:34:08the capital improvement fund contains

2:34:10about 450 000 in san pablo streetscape

2:34:14improvements

2:34:15and about 20 000 from the municipal

2:34:17services corporation

2:34:18and staff at this point

2:34:20is proposing to

2:34:23write off some of these assets

2:34:25some of these o2 amounts with the sale

2:34:28of rda properties right so the hedging

2:34:31principle where we follow

2:34:33the expense with the funds that

2:34:35generated those expenses

2:34:36so for example we propose that

2:34:39250 000 of asset sales between now and

2:34:42the end of the fiscal year be used to

2:34:44write off the 250 000 owed to the

2:34:46general fund

2:34:47450 000 of the asset sales be used to

2:34:49write off the capital uh capital

2:34:52projects that were incurred by the rda

2:34:54carried on our books as being owed to

2:34:56the general fund and so on so a total of

2:34:581 720 000 approximately would be used to

2:35:02reduce that 1.6 million and currently

2:35:05the other two balances for the

2:35:07integrated waste management is 317 000

2:35:11and the capital improvement fund is just

2:35:12six hundred and seventy thousand

2:35:13currently as opposed to the nine and so

2:35:15we've got reimbursements for that so

2:35:17once you've settled all these we expect

2:35:19this balance all to drop to about 539

2:35:22thousand by the end of fiscal 2019. so

2:35:25that's the plan and these were the fund

2:35:28balances that have come with us for the

2:35:30over the last several years but they

2:35:33already chose to bring these up and so

2:35:35we've addressed these with uh a plan to

2:35:38write these off uh perhaps

2:35:41at the media budget modification process

2:35:44so as to reduce these ode to about to

2:35:46539 000 so that's just

2:35:49an outline a connection back to where we

2:35:51were

2:35:52with the presentation by the arita back

2:35:54in november

2:35:56if i may mayor

2:35:57you'll go ahead um

2:35:59the one of the comments from mr badawi

2:36:02in november was to have a plan

2:36:05to repay

2:36:07the the loans

2:36:09your last column where you are

2:36:12identifying

2:36:14and potentially we have an item later

2:36:16tonight that is one of those uh items

2:36:19where you're identifying

2:36:21sales of

2:36:23assets

2:36:24would that in your mind constitute a

2:36:27plan to repay

2:36:29the the

2:36:30transfers of the but the loans to the

2:36:33general fund so the sale of the assets

2:36:35that we are contemplating through this

2:36:37action here pertains to assets that

2:36:39belong to the city and the sale of those

2:36:41assets would come back to the city in

2:36:42the form of general fund revenues and

2:36:45those are the ones that we're using to

2:36:47write off some of these amounts so for

2:36:48example the city housing trust fund has

2:36:50no revenue coming at all

2:36:52the answer hopefully the answer could be

2:36:53just yes is this a plan to repay

2:36:56the the tr the loans to the general fund

2:37:00yes the sale of the assets yes it is

2:37:02excellent that's i want to make sure

2:37:04that everybody hears that we have a plan

2:37:06to to to solve this so thank you

2:37:12and jumping to the next slide here

2:37:18so here's the historical general fund

2:37:19balance going back through 2012

2:37:22and as you might see we had a fund

2:37:23balance back in 2012 of 3.2 million

2:37:26which currently is approximately 818 000

2:37:30now one of the things that the aurita

2:37:32did in 2017 was to recognize that a

2:37:35piece of this fund balance was in

2:37:37litigation was in appeal and therefore

2:37:40he classified it as non-spendable so 994

2:37:44742 000 was classified as non-spendable

2:37:48the current balance on that is now 1.3

2:37:51million dollars still being classified

2:37:52as non-spendable but being treated by us

2:37:55as a receivable so unless we hear

2:37:57otherwise from the attorneys we'll

2:37:59continue to treat that as a receivable

2:38:01as a part of our fund balance

2:38:03and so these are the numbers that go

2:38:04into the fund balance there's a

2:38:06restricted general fund balance which is

2:38:08a debt service reserve and the

2:38:09unassigned fund balance has dipped from

2:38:122.6 million back to a negative 186 000.

The Financial Advisory Board's revision of the financial policy was presented, beginning with what other funds owe the general fund.

The figure: per the 2017 audit, $1.6 million owed to the general fund by other funds, “a majority” relating to the RDA and “going back even before 2012.”

Example: the city housing trust fund owes $250,352, with “no… fund transactions on that particular fund since 2012” — so the debt “originates much before.”

Staff proposed writing off some of these balances with proceeds from selling former RDA properties by the end of the fiscal year, leaving about $539,000; asked by Lyman, the finance director confirmed this was the plan to repay.

The City Manager framed the report: low reserves were partly the result of Council choices not to lay off staff during the recession, and every figure was in the published financial reports.

General fund balance fell from $3.2 million in 2012 to about $818,000, with $1.3 million in litigation classed as non-spendable and the unassigned balance at a negative $186,000.

Significant

Other funds owe the general fund $1.6 million, most of it RDA-related and “going back even before 2012”; staff propose writing much of it off with proceeds from selling former RDA properties.

14 Two point four percent captions 4200–4459

2:38:16and part of the reason the fund balance

2:38:18drip

2:38:20dropped significantly in 2012 was the

2:38:22action by council to use some of that

2:38:24fund balance to reduce the impact of the

2:38:26rda dissolution on the

2:38:28employees of the city so that has

2:38:30contributed to reduction in that fund

2:38:32balance as well

2:38:36and then the next slide

2:38:38is just a summary of statistics put into

2:38:40the general fund i might also mention

2:38:41that every single number on in this

2:38:43slide show is available in our cafes

2:38:46that are currently available on the

2:38:47website so everything is

2:38:49we could drill down and come back with

2:38:51any one of these numbers and so the net

2:38:53change in fund balance over the last

2:38:55five years as you might notice

2:38:58has been from a strong negative to a

2:39:00slightly positive in the last three

2:39:01years in other words the change in the

2:39:04difference between revenues and expenses

2:39:06have turned marginally positive between

2:39:082015 and 2017. that contributes to a

2:39:10positive impact to fund balance

2:39:13general fund expenditures have been from

2:39:1427 million all the way up to 33.8

2:39:17million and the total general fund

2:39:19reserve ratio which will we shall allude

2:39:21to in our comprehensive financial policy

2:39:24discussion in a few moments here has

2:39:26dipped from 11.8

2:39:28to 2.4 percent as portrayed in a budget

2:39:31book that was adopted back in june of

2:39:332018.

2:39:35so with that being said i'd like to

2:39:37pause here to take any questions that

2:39:39you might have on this type this side of

2:39:40the presentation before i move into the

2:39:42comprehensive financial policy document

2:39:46council member fidelity

2:39:50so mark you say you have we have a plan

2:39:54before this plan was

2:39:57developed where were those funds going

2:39:59to be going on the graph that you showed

2:40:02us

2:40:03so the funds that i'm going to use have

2:40:06proposed to use on this plan

2:40:08are funds that are monies that are owed

2:40:10to the city from the sale of fixed

2:40:12assets that were transferred to the city

2:40:14back in 2012 when the rda was dissolved

2:40:17so these are properties that belong now

2:40:18to the city so the general fund monies

2:40:21anyway they would have gone to the

2:40:21general fund but that being said

2:40:24simply writing off some of these things

2:40:26against those monies doesn't mean that

2:40:27the money leaves the building the money

2:40:29is still with the city are you just

2:40:31doing it earlier than you had hoped to

2:40:34do it well we've been always planning to

2:40:36get to the properties over time but i

2:40:38think in the last three or four months

2:40:39we've accelerated that process

2:40:41and hopefully by the middle of may or

2:40:43the end of may we should see most of

2:40:45these disposed of the major ones at

2:40:47least and i'm looking at referring to

2:40:49the mayfair property the issue property

2:40:51and the theater which has already

2:40:53transferred hands

2:40:55so when is the next time the auditor

2:40:57will officially review this material on

2:40:59this plan

2:41:00so so

2:41:02this is this comes a little late for the

2:41:0418 fiscal year which ended last june

2:41:08but i would submit these solutions to

2:41:10the audit as part of the management

2:41:12leader responses and say that council

2:41:14has acted on it through the budget mod

2:41:16process in 2019 so that we can enact

2:41:19these in the 2019 fiscal year

2:41:21so that would be a response to the

2:41:22auditor's uh

2:41:24questions on the management letter

2:41:27thank you

2:41:28you're pro tim lymon

2:41:30yeah thank you for the presentation

2:41:32tonight and and i know i'm glad we're

2:41:34stopping here to talk about the

2:41:36historical trend of the fund balances

2:41:38over time

2:41:40um

2:41:40you in your presentation you talked

2:41:42about the fact that the integrated waste

2:41:44management

2:41:45fund has already begun to

2:41:48um

2:41:50be paid back

2:41:51for lack of a better term i think you

2:41:53said it a minute ago the money doesn't

2:41:54actually leave the building it just goes

2:41:56from a

2:41:58account fund of general fund back to the

2:42:02fund where it came from so whether it's

2:42:04the city housing trust fund or the low

2:42:06and moderate income housing fund

2:42:08it it's still money that's in the in our

2:42:11government coffers it's just

2:42:13from accounting perspective a fund

2:42:15accounting perspective it's in the

2:42:17correct

2:42:18uh location

2:42:20is is there a plan to move more funds

2:42:23back to the integrated waste management

2:42:24fund between now and the end of this

2:42:28mid fiscal year

2:42:31again the immigration integrated waste

2:42:34management fund is an operational fund

2:42:37and there is continuous inflows and

2:42:38outflows out of that fund

2:42:40so when we take a snapshot of that fund

2:42:42balance as of june 30th 2019 depending

2:42:45on what's being paid for by the general

2:42:46fund that would constitute how much that

2:42:49balance changes by

2:42:50so if you paid more from the general

2:42:52fund the balance would move up so so

2:42:54it's difficult to predict at this time

2:42:56you really need to wait till june 30th

2:42:58exactly okay thank you

2:43:03that's a member quinto

2:43:06so my question is in the

2:43:10balance of the reserve ratio

2:43:12so 2017

2:43:16you have it at 2.4 percent

2:43:21what is your projection for uh 2018 then

2:43:27that's

2:43:29a good question because

2:43:31we haven't actually finished the audit

2:43:33for 2018 yet we're in the process of

2:43:35completing that okay and

2:43:38i think the city manager did mention

2:43:40that we have an extremely tight budget

2:43:43and we have

2:43:44extremely tight

2:43:46budgets for the next couple of years as

2:43:47well meaning 2019 and 2020.

2:43:49so given that scenario i would not

2:43:52expect this ratio to be significantly

2:43:53different from what we have

2:43:56thank you

2:43:58councilmember ableton i don't have any

2:44:00questions

2:44:02i have one question on the historical

2:44:04general fund balance slide

2:44:07i guess

2:44:10um

2:44:11you said that in 2012

2:44:15we decided to keep everyone on and there

2:44:17was a recession so you can see kind of a

2:44:21decrease kind of a steady decrease in

2:44:23next couple of years and then

2:44:26there's the sharper decrease at 2015 to

2:44:292016

2:44:30and a one time period

2:44:33one time prior period adjustment can you

2:44:35explain what that is

2:44:37so

2:44:40back in 27 2017

2:44:44we put out an rfp for auditors and we

2:44:46got a new set of auditors in the office

2:44:49and they went into they went back and

2:44:50took a look at

2:44:52um some of the

2:44:54payroll

2:44:55timing of payrolls over the past several

2:44:57years

2:44:58and they discovered that and this is the

2:45:01the more

2:45:03the significant part of that adjustment

2:45:05and they came back

2:45:07with the finding that the payroll had

2:45:10ended exactly on the 30th of june back

2:45:12in 2015 and should have been booked as

2:45:15an accrual

2:45:16because it was paid out the very few few

2:45:19days later in july

2:45:21and we had not done that and the

2:45:22previous auditor had never done that

2:45:24they never accrued payroll in the past

2:45:25so many years so they decided to do that

2:45:28and when you take that accrual it gives

2:45:29you a big one-time hit and that's the

2:45:32adjustment that you see there

2:45:34900 thousand of that adjustment is

2:45:35primarily that

2:45:381.278327 was the total adjustment at

2:45:40approximately 920 000 off that was

2:45:42payroll related the others were related

2:45:44to changes in inventories of our gas

2:45:47supplies for example

2:45:50and ap adjustments and so on and so

2:45:52forth

2:45:53uh we could very well have taken those

2:45:55adjustments back in 2015

2:45:57technically which wouldn't have changed

2:45:59that 615 000 number or the 80 under 18

2:46:02000 number it would have just reduced

2:46:04your 2015 fund balance from 1.4 million

2:46:07by

2:46:081.278 but we decided to do that

2:46:10adjustment going back to 2016 because

2:46:13that was the period that the auditor was

2:46:14looking at

2:46:16and so that's the primary adjustment one

2:46:18time adjustment that comes in there it's

2:46:19essentially a cleanup to put it mildly

2:46:22thank you

2:46:26so

2:46:27that concludes our questions

2:46:30there's still more on the policy oh okay

2:46:32there's more oh okay thank you

2:46:36so with that being said

2:46:43so you have the staff report in front of

2:46:45you

2:46:46and i have summarized

2:46:49there were several minor changes but

2:46:52i've summarized the three major changes

2:46:54that the fab has proposed

2:46:57to the comprehensive financial policy

2:46:59here

2:47:00and i'll just briefly run through that

2:47:04at a high level and then we can dig down

2:47:06deeper because this is more of a session

2:47:08to gather input from you and take

2:47:10questions from you and

2:47:12respond and provide clarification as

2:47:14needed and the fab members are behind me

2:47:16to um support with their point of view

2:47:19as well

2:47:20so one of the significant changes that

2:47:22the fab is proposing having reviewed our

2:47:25financial general fund reserve balance

2:47:27for so many years the fab has concluded

2:47:30there is no real way of

2:47:32hitting that 15

2:47:33general fund target that we've set

2:47:35ourselves going back so many years

2:47:38without having a significant source of

2:47:40revenue

2:47:42and the second thing that the fab was

2:47:43prompted by was the fact that we've had

2:47:45all these disasters and all kinds of

2:47:46things happening in the background

2:47:49and our cash position was

The history of the fund balance and a one-time adjustment were explained.

In 2012, fund balance was used “to reduce the impact of the RDA dissolution on the employees”.

The 2017 reserve ratio: 2.4 percent. For 2018, with “extremely tight budgets” for 2019 and 2020, it was not expected to differ much.

Asked by the Mayor about the sharp drop from 2015 to 2016: new auditors, hired by RFP in 2017, made a $1.278 million prior period adjustment, about $920,000 of it payroll-related — “a cleanup, to put it mildly.”

General fund expenditures had risen from $27 million to $33.8 million, and the reserve ratio had fallen from 11.8 to 2.4 percent.

Waste fund repayments to the general fund depend on year-end timing.

The FAB had concluded there was “no real way of hitting that 15 general fund target” without a significant new revenue source.

Significant

The 2017 reserve ratio was 2.4 percent against a 15 percent target, and not expected to improve. New auditors made a $1.278 million prior period adjustment, mostly payroll timing — “a cleanup to put it mildly.”

15 A substantial part of Measure V captions 4460–4649

2:47:52was not as highly liquid as we would

2:47:54have liked it to have been

2:47:56and so the fab put two and two together

2:47:58and said well let's divide this let's

2:48:00take the general fund reserve ratio

2:48:02and separate that from our cash needs

2:48:05for emergency and so the fab proposed an

2:48:07emergency disaster recovery fund in that

2:48:12that would contain cash to meet

2:48:14emergency needs

2:48:15so currently we just have a general fund

2:48:17reserve ratio which is approximately 50

2:48:19which is 15

2:48:20and that it's a nebulous number because

2:48:23it doesn't really mean anything if you

2:48:24don't have much cash

2:48:26so the fab actually came back and said

2:48:28let's create something that sets aside

2:48:31cash or permits the city to set aside

2:48:33cash and over a number of years it could

2:48:35be

2:48:36a bunch of

2:48:39biannual budget cycles it doesn't have

2:48:41to happen overnight it can happen over

2:48:43the next four to six years if you need

2:48:45to make it happen that way

2:48:46and so the fab came back with that as a

2:48:49suggestion and a proposal which they

2:48:52fully

2:48:53endorsed all members supporting that so

2:48:55that was one of the significant changes

2:48:57that the fed proposed to the

2:48:59comprehensive financial policy the

2:49:02addition of an economic and disaster

2:49:04recovery fund to be funded in time

2:49:08so as to reach a cash balance that would

2:49:10be sufficient to pay for operating uh

2:49:13personnel salaries uh to the tune of

2:49:15three months worth of uh payroll

2:49:17expenses

2:49:19that's something that is i think uh an

2:49:22addition to section 4.1 of the financial

2:49:25policy document

2:49:27and uh

2:49:28concurrent with that the fab recommended

2:49:31that we drop the 15 target to 10 once

2:49:34that fund was set up

2:49:35because the edra would take care of the

2:49:38emergency side of life and the 10 would

2:49:41be for operating needs only so they made

2:49:43that distinction right there

2:49:46so that was the second adjustment that

2:49:48the fab proposed to section 3.2 of the

2:49:50comprehensive financial policy document

2:49:53and then the major adjustment that they

2:49:55suggested for section 7.2

2:49:58is that city council actions include an

2:50:01analysis all future city council actions

2:50:03include an analysis of the immediate and

2:50:05future fiscal impacts of such actions as

2:50:09it pertains or impacts the general front

2:50:11target reserve ratio so for example if

2:50:14the city council were to approve of

2:50:17a contract or anything else that came

2:50:19out of general funds

2:50:21the fab wanted us to analyze the impact

2:50:24of that cost

2:50:26on the target reserve ratio which at

2:50:29that point would be ten percent and with

2:50:31that how much would that ten percent

2:50:32come down by essentially is one of the

2:50:34other things that they proposed and then

2:50:36in section 3.7 the fab recommended that

2:50:40we that city staff have access to

2:50:43one-time funds in order to meet

2:50:45operating needs which was a restriction

2:50:47that the comprehensive financial policy

2:50:49had previously imposed on the city and

2:50:51so the fab uh loosened that restriction

2:50:53and permitted city staff to get in there

2:50:55and use one-time funds for operating

2:50:58needs so these are primarily the four

2:51:00main

2:51:01areas of the modification in addition to

2:51:03all the

2:51:04um the formatting changes that we've

2:51:06also included in there so the

2:51:08comprehensive financial policies in in

2:51:10the package that you have it's in red

2:51:13line form so that you could trace the

2:51:15changes that were made or suggested

2:51:17and

2:51:18that is

2:51:20a summary of what we think are the major

2:51:22changes that are in this policy

2:51:29and i'll be happy to take any questions

2:51:30and fab members would be happy to take

2:51:31some if you have any for them go ahead i

2:51:34just have a quick question i'm assuming

2:51:35that

2:51:38the revenue that may be coming in from

2:51:40measure v that passed will be obviously

2:51:43going into the reserve fund into the

2:51:46general fund

2:51:47is there any connection between

2:51:49articulating that

2:51:50that money's going in

2:51:52there

2:51:53has been some sense of

2:51:55support to show a separate

2:51:58transaction account for the measure v

2:52:00funds and if we do spend some for fires

2:52:03but

2:52:04will will there be a direct correlation

2:52:06between the funding coming in and the

2:52:08reserves going up

2:52:12to meet that 10 percent goal right so

2:52:15measure v funds uh general funds right

2:52:17general fund tax receipts

2:52:19and

2:52:20say for example

2:52:22as recommended by fab and also

2:52:26supported by my view on things if a

2:52:29substantial part of measure v is

2:52:31transferred into the edrf and the edr

2:52:33have been fully funded will be

2:52:35approximately 15

2:52:37of all general fund expenses so let's

2:52:39say a substantial part of that piece is

2:52:41transferred into the edrf it does

2:52:43contribute to that 15 ratio but it does

2:52:46not add to the general fund reserve

2:52:47ratio which the target is 10

2:52:50so you're saying it will go into the

2:52:52economic and disaster recovery fund

2:52:54right mr v

2:52:59and then we will see what it's used for

2:53:02in your budget reports to us right thank

2:53:05you

2:53:12um

2:53:13mark you just said something that

2:53:15actually i was hunting for

2:53:18in item 7.2 on page five

2:53:22the the new text says particularly

2:53:24impacts on the general fund target

2:53:26reserve ratio

2:53:28and i was looking for

2:53:30reserve ratio in here

2:53:32to see what that meant

2:53:35um

2:53:36because i'm not certain i understand the

2:53:37way you described it i'm not sure i

2:53:39understand it

2:53:40what that

2:53:42new text does

2:53:43but if i understand what you just said

2:53:46you just said that the 10 percent that's

2:53:48back in

2:53:50item 3.2 on page 2

2:53:54to

2:53:55i would potentially propose inserting

2:53:57the word ratio there

2:53:59if i understood what you just said it is

2:54:00a goal of the city to achieve a general

2:54:02fund annual operating reserve ratio of

2:54:0510 percent

2:54:07is that what you're saying that is

2:54:09exactly right yeah so the word ratio is

2:54:11only used in 6.7 appears and therefore

2:54:15potentially we should be adding the word

2:54:17ratio

2:54:18into 3.2

2:54:20now that i've established that the 10 is

2:54:22the reserve the target reserve ratio

2:54:25under 7.2

2:54:27um where you are basically asking

2:54:31all agenda bills

2:54:32to

2:54:34explain

2:54:36how that

2:54:37agenda action might

2:54:39impact

2:54:40it actually isn't going to change the

2:54:42reserve ratio

2:54:44it will

2:54:45change our

2:54:47ability to comply with the ratio

2:54:49because it's not going to change the

2:54:50ratio from 10 to 9.5 percent the target

2:54:54reserve ratio is always going to be 10

The FAB's central proposal was a cash emergency fund — to be funded substantially from Measure V.

The reasoning: the general fund reserve ratio “is a nebulous number, because it doesn't really mean anything if you don't have much cash.”

So the FAB proposed an Emergency and Disaster Recovery Fund holding cash for three months of payroll, built over “four to six years,” with the reserve target dropping from 15 to 10 percent once it exists.

And its funding: “as recommended by FAB, and also supported by my view on things, if a substantial part of Measure V is transferred into the EDRF… it does contribute to that 15 [percent] ratio.”

Asked whether Measure V revenue would go to the reserve, the finance director said that, if a substantial part were transferred, it would go to the EDRF and be reported in budget reports.

The draft policy also allowed staff to use one-time funds for operating needs.

Also proposed: every Council action must analyze its impact on the reserve ratio.

The draft text read that “the city council shall fund six million dollars in the edrf intended to cover three months of payroll costs.”

Significant

The finance director: “as recommended by fab and also supported by my view on things if a substantial part of measure v is transferred into the edrf” it would contribute to the fund's target. On 2 April a councilmember who campaigned for Measure V says “a lot of us had prioritized a reserve for that money.”

16 Three months grows every year captions 4650–5088

2:54:57but it's our ability to meet that ratio

2:55:02right and

2:55:04this i think presupposes

2:55:07that we achieve the target receive ratio

2:55:09at some point well let's say we're at

2:55:1011.

2:55:12and it's going to go from 11 to 10.5

2:55:14we're still not changing the target

2:55:15ratio we're changing

2:55:18our balance's ability to meet that ratio

2:55:22that is correct this the way it's worded

2:55:24here is it's changing the ratio so i

2:55:27just i just wanted to i think i

2:55:29understand what you said but what's

2:55:31written here is not what you meant

2:55:34if if i'm reading it correctly you are

2:55:37okay in fact that's part of the reason

2:55:38for this study session here to get your

2:55:40feedback and input okay yeah that would

2:55:42be

2:55:42so i believe that the text that's in 7.2

2:55:45and i don't think we need to smith it

2:55:47tonight but i

2:55:48unless we're are we approving it tonight

2:55:50i assume we are there's no action no

2:55:52it's okay okay

2:55:54um yeah that

2:55:56um the though that was my question that

2:55:58is my series of questions what is around

2:56:00the ratio and certainly

2:56:02uh you answered the question i had about

2:56:05item 3.7

2:56:06um the other so as long as we're on

2:56:10questions

2:56:11that potentially might lead to future

2:56:13wording

2:56:14in item 4.2 on page three

2:56:20the second sentence says

2:56:22the city council shall fund six million

2:56:24dollars in the edrf intended to cover

2:56:27three months of payroll costs i actually

2:56:30think

2:56:30the intention of covering three three

2:56:32months of payroll cost

2:56:34is the more important

2:56:36value

2:56:37the more important statement

2:56:40because

2:56:41over time three months of payroll may

2:56:43change

2:56:44and so i i would suggest that

2:56:45potentially that sentence focus the city

2:56:48council shall fund

2:56:50the edrf to cover three months of

2:56:53payroll costs

2:56:56currently six million dollars or

2:56:57something to that effect because because

2:56:59the your your intent is to get three

2:57:01months of

2:57:03of payroll

2:57:04five years from now three months of

2:57:05payroll might be eight million right

2:57:09just just a just just a suggestion sure

2:57:11okay thanks

2:57:14what's the member quinto

2:57:16councilman um yes i um

2:57:22uh i

2:57:23have a daughter as i probably heard me

2:57:25mention that lives up in lake county

2:57:28and lake county has been on fire a lot

2:57:30recently literally

2:57:32uh i believe this last year it ended up

2:57:35being

2:57:36half the county

2:57:38literally was on fire

2:57:41um

2:57:42and so i i think that that's

2:57:44caused by

2:57:46global warming

2:57:48and

2:57:49uh one can argue with me or not but

2:57:51that's what i think

2:57:53and um so this idea that we would have a

2:57:56disaster

2:57:59and then

2:58:00that would kind of be it

2:58:03is to me

2:58:04um

2:58:05not very accurate

2:58:07with what i see happening where the

2:58:09fires are already occurring

2:58:12um it's much worse than that actually

2:58:15um

2:58:16and so

2:58:18the concept of having a fund and then

2:58:21you can use the fund and then then you

2:58:24maybe never have a disaster again

2:58:27i think is

2:58:28if we're talking about global warming as

2:58:31the cause of say that fire

2:58:33in that example

2:58:35that's not actually going to be the way

2:58:37the disaster is going to occur

2:58:40it's going to occur it's going to be

2:58:43wave after wave after

2:58:45wave probably getting worse and worse

2:58:48and worse

2:58:50unfortunately

2:58:53so

2:58:54it doesn't seem to me like

2:58:56establishing a fund

2:58:59is the way that works we need to have

2:59:03um

2:59:04it needs to be more on

2:59:07it's not like we put money in it and

2:59:08then then it's taken care of

2:59:11it's that we need to

2:59:14[Music]

2:59:15it's like it's almost needs to be part

2:59:17of our budget if we're going to look at

2:59:19our

2:59:20that we are going to have to do this

2:59:22ourselves

2:59:24um

2:59:26and

2:59:26in fact from what i understand in places

2:59:29like lake county they are not doing it

2:59:31themselves

2:59:32i believe it's the state and federal

2:59:34government that ends up um covering it

2:59:36but i i could be wrong on that it's just

2:59:38what i've

2:59:40um

2:59:41i've heard mention

2:59:42on the news but the um

2:59:45so i'm thinking there's there's a

2:59:47problem in um describing it this way

2:59:50perhaps and that we need to

2:59:53um

2:59:56think of it a little bit differently

2:59:58especially as it

2:59:59relates to these

3:00:02major

3:00:03disasters

3:00:04which

3:00:06unfortunately i see happening

3:00:09an increasing way over the

3:00:11you know not not it's not like a

3:00:13one-time thing and then we're we had

3:00:15ours and everything's okay i think that

3:00:18it'll keep getting worse and worse and

3:00:20worse

3:00:22and it won't just be us

3:00:24it'll you know it'll be everyone

3:00:26surrounding us or whatever but um

3:00:30so so

3:00:31i think that needs to be resolved in

3:00:34in this um

3:00:37um

3:00:39the um

3:00:42the three months of operational

3:00:44salary could

3:00:46um

3:00:48that would be whatever our

3:00:50every year we have a new amount of

3:00:53dollars

3:00:55that

3:00:56represents three months of salary right

3:00:58and so if year one it's um

3:01:02a hundred thousand dollars year two it

3:01:04might be 120 000

3:01:07you know it just goes up so i assume

3:01:09that this would then have that number

3:01:12moving up which it should

3:01:15um

3:01:16and that that would

3:01:18um

3:01:20be be the way that that would work

3:01:23but um i i would not want us to get

3:01:26mostly i would not want us to get um

3:01:29to thinking that everything's covered

3:01:32um because we came up with some amount

3:01:36of money whatever that amount of money

3:01:38is

3:01:39it's like gotta be

3:01:40it's gotta keep happening if

3:01:43if it's gonna do what it is i think

3:01:44we're saying it would do there

3:01:49and um i i had it as i mentioned i think

3:01:53to somebody i already i had a terrible

3:01:55time reading the

3:01:56the document that had

3:01:59the changes it would be really nice to

3:02:01see it full size

3:02:04just because i can't

3:02:06see that well

3:02:09that i did

3:02:11but i also did mention and i'll mention

3:02:12it again when

3:02:14i was talking to the city manager

3:02:17earlier about this is that um

3:02:22i once took a training

3:02:24as

3:02:25a city council member in the city

3:02:28of

3:02:31emergency

3:02:34response and what the city council's

3:02:36role in that response is

3:02:39and um

3:02:41it one of the things that was to me

3:02:43really

3:02:47meant was interesting and i really meant

3:02:50was so obvious i suppose which is that

3:02:52the people who will be here when the

3:02:54emergency

3:02:56happens

3:02:58are the city council members more so

3:03:00than say the people who work for the

3:03:03city

3:03:04because the people who work for this

3:03:06city

3:03:07most of the time are not here

3:03:09um

3:03:11and we are here more you know this is

3:03:14where we spend our free time on average

3:03:17so um there is a role for the city

3:03:20council to play in managing

3:03:23the incidents and we need training on

3:03:25that i think

3:03:27on what our role is and what it isn't

3:03:29and um

3:03:31how to fulfill our role and and i have

3:03:34been to such a training so i know that

3:03:36that uh in fact

3:03:39exists somewhere

3:03:42so i would suggest that that's something

3:03:44that needs to be

3:03:45uh done and so the thing that made me

3:03:48think about it was there was a comment

3:03:50on

3:03:52where it says mayor somewhere

3:03:55it'll be on the odd numbered pages let's

3:03:58see if i can find it there it is

3:04:00page three

3:04:01um and it says

3:04:05uh the purpose of it's 4.2 the purpose

3:04:07of the bun blah blah blah

3:04:11and then it says as declared by the

3:04:13mayor

3:04:15well we're council form of government

3:04:18so

3:04:19we don't use usually say those words

3:04:23so

3:04:25we need to i would just suggest we need

3:04:27to resolve that

3:04:30and and then i would appreciate it if

3:04:33this could be reprinted full size

3:04:36uh

3:04:37eliminating all those

3:04:40the corrections

3:04:41i know

3:04:42it's just a flipping a switch somewhere

3:04:45inside word

3:04:47we'll take care of that but i had a

3:04:50really hard time reading it

3:04:52because of that

3:04:55that's those are my only comments

3:05:00the economic and disaster recovery fund

3:05:04what the fund would be used for would

3:05:05that be determined by the council

3:05:08like in terms of

3:05:10the

3:05:11i mean i see that there's

3:05:13there are certain things that were

3:05:14listed

3:05:16could we add to that or subtract from

3:05:18that or how does that work

3:05:22the trigger for the edrf would be

3:05:25an emergency or disaster that requires

3:05:27that kind of thing and that's where the

3:05:28mere terminology comes in and we could

3:05:30always revisit that

3:05:32as a council member mabelson pointed out

3:05:35and of course i'll reprint this thing

3:05:37with enlarge a font as well just to make

3:05:39sure that everybody gets to see what's

3:05:40in there

3:05:44and again i would i would refer to my

3:05:47fab colleagues on this one but

3:05:49the fab was pretty strong in pointing

3:05:53out that

3:05:55the expense that would really need to be

3:05:57born through an emergency such as this

3:05:59should be payroll more than anything

3:06:01else because there'll be first

3:06:02responders and others who will be

3:06:05responding to an emergency before the

3:06:07state or feds or anybody else comes on

3:06:09the scene

3:06:11to take care of major

3:06:13issues for us so that was the thinking

3:06:16behind this

3:06:17not so much the other

3:06:19operating expenses such as rents and

3:06:21utilities other kinds of things which

3:06:23could be deferred to a paid for

3:06:25but that being said there is nothing in

3:06:28this that prevents

3:06:29the council from defining what needs to

3:06:32be it needs to be spent on

3:06:34and

3:06:36it's pretty broad it provides an

3:06:38opportunity for the city to create a

3:06:41fund create a cash balance in the fund

3:06:43not just a fund balance not just a

3:06:44reserve percentage but real cash to be

3:06:47maintained in a checking account or a

3:06:50minimal liquid account

3:06:52like the lathe for example that can be

3:06:54drawn down in an emergency and used to

3:06:56pay off payroll things

3:06:59but again that being said there's

3:07:00nothing that prevents nothing in the

3:07:02language here that prevents city council

3:07:03from defining exactly what it means to

3:07:05be spent on

3:07:07right i mean i

3:07:08of course i'm i'm speaking for myself

3:07:10but i assume that the council would

3:07:12agree i mean this would be for

3:07:14disasters and emergencies and we would

3:07:16do our best not to touch it for any

3:07:18other reason but

3:07:19as disasters and emergencies arise

3:07:21sometimes the unforeseen also arrives

3:07:24and i just wanted to make sure that we

3:07:26would have some sort of

3:07:27access to the funding if there was an

3:07:29unforeseen event that we might need to

3:07:31respond to

3:07:33and again thinking the fab's thinking on

3:07:36this was that it needs to be a real

3:07:38emergency or a real disaster and again

3:07:42the fab is appointed by city council and

3:07:45this is their point of view on this

3:07:49and they were pretty strong on making

3:07:50sure that it was only tapped

3:07:52for absolute really absolute problems

3:07:56yeah thank you

3:07:59go ahead

3:08:00um mark in the council member abelson

3:08:03picked this up and i want to make sure

3:08:04that the language changes is

3:08:07correct

3:08:08in item one of your agenda bill you talk

3:08:11the sentence says

3:08:13only city council can authorize the use

3:08:15of funds can you point to where in the

3:08:18policy

3:08:19that sentence

3:08:21is activated

3:08:26i think it's the same section that

3:08:27council member abelson pointed out 4.2

3:08:30i'm looking at 4.8 yes and so so i would

3:08:32agree with council member abelson that

3:08:34that as declared by the city council

3:08:36because that's what your agenda bill

3:08:38says right

3:08:39and it's my understanding

3:08:41that we can meet with three i'm looking

3:08:43at sky there's certain

3:08:46emergency you can have emergency uh

3:08:49meetings as a result of this you only

3:08:51need three

3:08:52you can do the majority of it has to be

3:08:55unanimous of the three when there's only

3:08:56three

3:08:59i just want to do a little a little

3:09:01sanity check

3:09:02the reason the reason it might be the

3:09:04mayor is because it only takes one

3:09:06person to do it and you can't get a

3:09:08quorum together

3:09:10there are

3:09:11provisions in state law dealing with

3:09:13emergencies and

3:09:15the convening of the council in in

3:09:17situations in which council members are

3:09:19physically unable to attend a meeting

3:09:22i'm not going to be able to recount them

3:09:24for you tonight but yes there are cert

3:09:27it

3:09:29i think that what we could do is attempt

3:09:31to review

3:09:32that provision of the policy

3:09:34with those provisions of state law and

3:09:37basically write the policies such that

3:09:39in the event that the mayor were the

3:09:41only person the only member of the city

3:09:43council who was actually physically able

3:09:45to

3:09:46um convene a meeting that that the

3:09:48authority would be there to do that but

3:09:49that otherwise it would take a majority

3:09:52action of the members of the council who

3:09:54are actually able to be present for for

3:09:56such an emergency

3:09:58i know that's a mundane piece but that

3:10:00it potentially is important i know for

3:10:03where i work

3:10:05it is just the general manager and the

3:10:07chair of the board is all it's necessary

3:10:09to declare an emergency so they can

3:10:11begin to deal with life-threatening and

3:10:14fixing things and spending the money

3:10:15that's in this so i don't want to

3:10:18necessarily constrain

3:10:20the ability of

3:10:22our our staff to do the right thing

3:10:25poster emergency but council member

3:10:27abelson's correct it it it looks like it

3:10:30should be city council where it says

3:10:32mayor but i want to make sure that that

3:10:34we tied our hands in the case of an

3:10:36actual in case of emergency no i think

3:10:39you're both right and i think the thing

3:10:40to do as i said would be to to look at

3:10:42it against the state law and and try to

3:10:44write it to cover

3:10:46the situation in which the mayor is the

3:10:48only person who or their designee could

3:10:50be the mayor because there is also the

3:10:52emergency my bigger point was is that we

3:10:54need a training to know what

3:10:57our role is in an emergency which is to

3:10:59me the most important thing correct uh

3:11:02and we haven't

3:11:04had one in many years since i was in

3:11:06that one training

Councilmembers refined the policy's wording and asked about emergencies.

Lyman found the text confused the target ratio with the balance's ability to meet it, and asked that “ratio” be inserted.

Abelson, warning that disasters would come in waves, noted three months of payroll grows each year: “year one it's $100,000, year two it might be $120,000.”

Lyman had already suggested the policy name three months of payroll rather than a fixed $6 million: “five years from now three months of payroll might be eight million.”

The finance director: the fund is for salaries because paying staff is the first need in a disaster; the Council could define its uses.

A councilmember asked for emergency role training: “we haven't had one in many years.”

Lyman and Abelson asked that the policy say the City Council, not the Mayor, declares an emergency; the City Attorney would check state law for when only the Mayor can convene.

Note

Councilmembers ask that the fund target be three months of payroll rather than a fixed sum, and Abelson asks for emergency-role training: “we haven't had one in many years.”

17 Oroville captions 5089–5269

3:11:08excellent

3:11:13all right speakers

3:11:15are there any speakers on this item

3:11:18we do have one card from marlene keller

3:11:24good evening madam mayor council members

3:11:28and city manager pinkos um

3:11:31why did we spend as a fab

3:11:34so many weeks

3:11:36recrafting not perfectly

3:11:39this comprehensive financial policy

3:11:42it is entirely because

3:11:45you task us to look at financial policy

3:11:47and financial status and we said

3:11:51unanimously there is currently and there

3:11:54hasn't been for a while

3:11:57a real reserve for this city

3:12:00and that means that the city's financial

3:12:02stability and its financial resilience

3:12:07is in jeopardy

3:12:12the key is to me as an ex-auditor and

3:12:15budget manager for both government and

3:12:18private sector to look at what is the

3:12:20standard i'm not speaking from my notes

3:12:22because they don't really matter i think

3:12:24you said some very important things and

3:12:26i want to recognize them

3:12:29the standard

3:12:30in government

3:12:32financial officers association

3:12:37statements is that a city a government

3:12:39entity needs to have a minimum

3:12:43of two months cash reserve

3:12:47they don't specify as you point out as

3:12:50madam mayor said

3:12:52what's it for they don't specify that

3:12:54for good reason they want

3:12:56elected officials to be a bit um

3:12:59to be able to respond as appropriately

3:13:03in emergencies including financial ones

3:13:07but two months is the minimum standard

3:13:10we don't meet that

3:13:13what would also i'm just going to add

3:13:14lib a bit from we think we thank city

3:13:17manager pinkos to for coming to the last

3:13:20fab meeting that was very valuable it

3:13:22was real partnering it was a great

3:13:24exchange of information

3:13:26and it was a very valuable discussion

3:13:29about the inner fund transfers

3:13:32and the city's good plans

3:13:34to change those policies change those

3:13:36practices and restore the balances

3:13:40in

3:13:41those business use funds

3:13:43and that's prudent that's very wise

3:13:46but

3:13:47what can happen what is likely to happen

3:13:50is that not only will there be

3:13:54a crisis caused by an earthquake or fire

3:13:58that we can all envision but that it

3:14:00will generate an immediate

3:14:03urgent

3:14:04financial crisis and it isn't just

3:14:07meeting payroll of course we would have

3:14:09to have a mechanism for first responders

3:14:12or public safety to be on the streets to

3:14:14be helping

3:14:16but it's

3:14:17it's procurements it's a lot of other

3:14:19things

3:14:20but as you know as you well know this is

3:14:22a very wise council

3:14:24and i respect what you have done

3:14:27as you know the next threat in those

3:14:30kinds of

3:14:31dramatic emergencies

3:14:33are a decline to sales tax because there

3:14:36won't be business on san pablo avenue

3:14:38summaries

3:14:39yes i didn't know i was time limited

3:14:41because i'm coming

3:14:43at the request of fab but oh but to

3:14:45summarize

3:14:46but to summarize

3:14:48you have a threat to i i wouldn't me

3:14:50it's your it's your money

3:14:52it's your risk

3:14:54um and the people are listening because

3:14:56they want to know what's happening with

3:14:57measure v so thank you for the

3:15:01maybe one extra minute yeah go ahead

3:15:04um what

3:15:06is at stake is the issue of then with

3:15:10crisis involving sales tax it just

3:15:13starts drying up quickly

3:15:15and there are public safety issues that

3:15:16don't permit people to get to businesses

3:15:19and with property taxes being a problem

3:15:22because as you know from other cities

3:15:24that have faced disaster like oakland

3:15:27when valuable property businesses or

3:15:29houses

3:15:31are destroyed

3:15:33it on average took for oakland two years

3:15:37to rebuild

3:15:38people

3:15:40there can't

3:15:41people from paradise right now are

3:15:42camping out in oroville we think we've

3:15:44got a housing problem now

3:15:47look at what happened with oroville so

3:15:49so the goal is we all are trying to find

3:15:52language

3:15:53which would describe for the city's

3:15:55benefit

3:15:57please establish a reserve

3:16:00we you're right six million is just not

3:16:03a good figure

3:16:04a better one as you said is say three

3:16:07months

3:16:08of operating reserve

3:16:10the fab wanted it to say salaries i i

3:16:13wanted operating expenses but it's your

3:16:16choice

3:16:18either way three months will accomplish

3:16:19what you need

3:16:22and the goal would be our goal

3:16:25for you would be as you see the new any

3:16:28new revenue coming in you decide in your

3:16:31wisdom

3:16:32what amount you bank

3:16:34into that as council member

3:16:36uh abelson said it forget calling it an

3:16:39emergency blah blah it's not a one-time

3:16:41event it should

3:16:42probably really be called a permanent

3:16:44reserve fund

3:16:46that's what it's meant to be

3:16:48you might say sequestered

3:16:51and it's it'll be trackable easily into

3:16:54the general ledger it'll have a unique

3:16:56accounting code

3:16:59you decide what it's spent on what goes

3:17:01into reserve

3:17:02banked like a savings account

3:17:04and what is spent on what you know are

3:17:07urgent matters

3:17:09that need expenditure whether fire

3:17:11prevention

3:17:13or something else

3:17:15but

3:17:16the key would be

3:17:18for me if i was advising you as a budget

3:17:21manager to

3:17:22vps

3:17:24the next step is what you already exert

3:17:26and that's the budget control on the

3:17:29expenses

3:17:30you would just say as you do now

3:17:32for any planned expense what's the

3:17:34fiscal impact and you would ask

3:17:37that the

3:17:38times in which a withdrawal from the

3:17:40reserve was made or new revenue is not

3:17:43going to reserve but is instead put in

3:17:46place for expenses you would just ask

3:17:48for that listing it's really no

3:17:50different from the wisdom you applied

3:17:53to the street oversight funds that came

3:17:56from the taxpayers and had a unique

3:17:58identity that you just wanted to

3:18:00preserve and you wanted to record your

3:18:02actions

3:18:03thank you

3:18:04thank you

3:18:14can i just take this moment to suggest

3:18:16that since we're rapidly approaching

3:18:1910 30

3:18:20to extend the meeting by 15 minutes

3:18:24this is not the last item is there a

3:18:26second oh second

Marlene Keller, a Financial Advisory Board member, explained why the board had spent weeks on the policy.

Her statement: “we said unanimously there is currently, and there hasn't been for a while, a real reserve for this city, and that means that the city's financial stability and its financial resilience is in jeopardy.”

The standard, she said, is a minimum of two months' cash reserve: “two months is the minimum standard we don't meet that.”

The threat after a disaster: sales tax “just starts drying up quickly” when people cannot reach businesses, and property taxes suffer when buildings are destroyed — Oakland took “two years to rebuild.”

And the human scale: “people from Paradise right now are camping out in Oroville.”

She wanted operating expenses covered; the FAB had settled on salaries.

The meeting was extended.

Significant

A board member: “we said unanimously there is currently and there hasn't been for a while a real reserve for this city and that means that the city's financial stability and its financial resilience is in jeopardy.”

18 No line of credit captions 5270–5412

3:18:28all in favor

3:18:29aye aye aye

3:18:31although i know it's not enough

3:18:34we'll do it we'll do it again at 10 45.

3:18:38thank you

3:18:39thank you

3:18:40and i'll be extremely brief

3:18:42as i said i'm dick patterson i'm the

3:18:44chair of fab i've been on the fab

3:18:46as a member for several years

3:18:48and the reserve fund has been the most

3:18:51constant and pressing topic

3:18:54for the entire time i've served on this

3:18:56board

3:18:58when we think about el cerrito i've

3:19:00heard several times tonight

3:19:02that we have a very tight budget what

3:19:04that means is we

3:19:05all the cash comes in almost all the

3:19:07cash goes out

3:19:09that means that there's nothing

3:19:11no margin

3:19:13in the event of anything that goes

3:19:15dramatically wrong we can we can shift

3:19:18things around and we did that during the

3:19:19recession did a great job

3:19:21but the city has no liquid assets

3:19:24it doesn't have a bank line of credit it

3:19:26gets won every year uh in the form of a

3:19:29tax anticipation note

3:19:31but most corporations have a line of

3:19:33credit that they can tap anytime that

3:19:35they need some extra cash when things go

3:19:37wrong and you need extra cash and you go

3:19:39to the bank that's when the bank's not

3:19:41going to give you a loan

3:19:43so the purpose of the edrf and the

3:19:47reserve fund are even though they're for

3:19:49different purposes

3:19:51is to give us that give the city that

3:19:53kind of a cash reserve that it needs in

3:19:56the event of emergencies we've heard

3:19:57tonight

3:19:59several people talking about various

3:20:00types of emergencies

3:20:02and that's the purpose of the reserve

3:20:04fund so

3:20:06i can answer any questions about the

3:20:08fab's thinking happy to do so otherwise

3:20:10that's why we support it

3:20:13thank you

3:20:14thank you

3:20:19are there any further questions from the

3:20:21council

3:20:27discussion or direction that we'd like

3:20:29to provide

3:20:31i'll give a few comments real brief

3:20:34thank you to the fab especially those of

3:20:35the members that are here tonight for

3:20:37your considered thinking on this this is

3:20:39great

3:20:41eight years ago

3:20:42we did

3:20:44started

3:20:45over the policy it was fantastic that we

3:20:47started it we struggled with how much

3:20:49the reserve ratio should be with regards

3:20:52to the same topic like what is that

3:20:55that value that in theory we need to

3:20:56have on hand

3:20:58changing it from a reserve ratio in a

3:21:00fund that may or may not be there any

3:21:03given day to actual cash is

3:21:06very prudent in light of all the things

3:21:09we've seen

3:21:10you know and and to miss keller's

3:21:12comment

3:21:14when napa's earthquake that they had it

3:21:16was renting fencing around the brick

3:21:19walls that had remnant to fall and their

3:21:22biggest expense that they found that

3:21:24they needed was to get rid of all of the

3:21:26big screen tvs that weren't properly

3:21:29bolted to the wall that fell off and

3:21:30were no longer functional so there there

3:21:32are expenses that are out there that are

3:21:35not just payroll so the

3:21:37in in its

3:21:38whether it's three months of net or

3:21:40three months of uh salaries

3:21:43it it's great we had the cash on hand

3:21:46the last time i checked um

3:21:49at city county in san francisco after

3:21:51loma prieta they were still trying to

3:21:54get fema to pay them over a decade later

3:21:56uh the rim fire uh which was uh also

3:21:59with city accounting in san francisco

3:22:01the rim fire was more than seven years

3:22:03ago and and the san francisco public

3:22:06utilities commission is still struggling

3:22:07to get some female money for that too so

3:22:09that the

3:22:11the cash that we have on hand may not

3:22:13get repaid as quickly as we envisioned

3:22:15today

3:22:16even if though there may be

3:22:18payments the uh

3:22:21napa found that uh they did not actually

3:22:23have enough loss to get a fema claim so

3:22:25they got zero fema repayment for their

3:22:27money so

3:22:28uh it it is uh

3:22:31it's a real thing that we need to have

3:22:32cash on hand for so i'm very supportive

3:22:34of the policy that you're bringing

3:22:36before us

3:22:38i was counsel liaison to the fab

3:22:41a couple of years ago and i heard some

3:22:43of this as it was

3:22:45in the brainstorming phase i'm so happy

3:22:47to see us here

3:22:49about two years later

3:22:51[Music]

3:22:52being able to move forward with building

3:22:54this reserve i'm so grateful that

3:22:56measure b passed

3:22:58and i just like to reiterate though that

3:23:01you know an ounce of

3:23:03prevention is worth a pound of cure and

3:23:05i hope that we can at least you know

3:23:07we're looking for those pounds for the

3:23:10for the reserve but we need some ounces

3:23:12to go out to prevention and i don't want

3:23:14us to forget about that so thank you

3:23:16very much

3:23:19thank you

3:23:23all right our next item is the

3:23:27exclusive negotiating right agreement at

3:23:316111 petraro avenue

3:23:34and 11335-41

3:23:39san pablo avenue

3:23:52put something on

3:24:04let me just

Dick Patterson, the FAB chair, described the city's position in plain terms.

His summary: “the reserve fund has been the most constant and pressing topic for the entire time I've served on this board.”

And the meaning of a tight budget: “all the cash comes in, almost all the cash goes out… there's nothing, no margin, in the event of anything that goes dramatically wrong.”

Then: “the city has no liquid assets. It doesn't have a bank line of credit. It gets one every year in the form of a tax anticipation note.”

Lyman, supporting cash on hand, noted that FEMA repayments after Loma Prieta and the Rim Fire had taken years, and that Napa received none after its earthquake.

His warning: “when things go wrong… and you go to the bank, that's when the bank's not going to give you a loan.”

No action was taken; staff would bring the policy back with changes. The Mayor welcomed the reserve but added that “an ounce of prevention is worth a pound of cure.”

Significant

The FAB chair: “the city has no liquid assets it doesn't have a bank line of credit it gets won every year uh in the form of a tax anticipation note.”

19 A hotel next door captions 5413–5699

3:24:05uh get something up real quick

3:24:26good evening uh city council uh mayor my

3:24:30name is melanie mintz and i'm the city's

3:24:31community development director and i

3:24:33will make a very brief

3:24:34presentation

3:24:36um

3:24:36given the the time

3:24:39um just quickly as background as you all

3:24:41recall um

3:24:43when

3:24:43the rda dissolved we had uh uh four four

3:24:47or five properties

3:24:49um that we that the rda had bought for

3:24:51development over the decades and we were

3:24:53asked by the dissolution legislation to

3:24:56prepare a long-range property management

3:24:58plan

3:24:58and to sell those development properties

3:25:00for fair market value

3:25:03and to distribute the proceeds from

3:25:04those sales to the taxing entities we

3:25:06were also asked to develop a

3:25:08compensation agreement which we did

3:25:10um at the end of 2018 and through that

3:25:14compensation agreement which reiterates

3:25:15that we need to sell those uh properties

3:25:18expeditiously for fair market value

3:25:21um and uh also specifies that we would

3:25:23receive 22 percent of the

3:25:26approximately 22 of those proceeds of

3:25:28course selling these properties and

3:25:30acquiring these properties was not for

3:25:32the the land value it was really to

3:25:34catalyze economic development and

3:25:37quality of life improvements in el

3:25:39cerrito so

3:25:40what i have before you tonight i think

3:25:42fulfills all these goals

3:25:45so

3:25:47and before you tonight to ask that you

3:25:50adopt a resolution authorizing execution

3:25:52of an exclusive negotiating rights

3:25:54agreement

3:25:56with petraro avenue partners for the

3:25:58disposition of 611 petraro avenue and 13

3:26:0211335 to 11341 san pablo avenue

3:26:07for development of approximately 7000

3:26:09square feet of commercial

3:26:11and

3:26:13approximately 40 units of residential of

3:26:15course it's early and what the exclusive

3:26:18negotiating rights agreement does

3:26:20is gives the proposed purchaser the time

3:26:22to do the due diligence to determine

3:26:24um whether they want to proceed with a

3:26:26purchase of sale agreement and allows us

3:26:28to the time to do

3:26:31an appraisal to determine that fair

3:26:32market value

3:26:33so the properties in question as you can

3:26:35see are parcels one and two um they

3:26:37total

3:26:38about um

3:26:41it's about 11 000

3:26:43square feet

3:26:47yeah about about 9 500 square feet um

3:26:50and what's unique about them um aside

3:26:52from the fact that they're not very

3:26:53large

3:26:54um

3:26:55and kind of in that odd shape but they

3:26:56do have frontage on both san pablo

3:26:58avenue and petraro avenue

3:27:01the rda bought these properties along

3:27:03with another property on east shore

3:27:04triangle with the goal of consolidating

3:27:07properties throughout the east shore

3:27:08triangle for a larger development

3:27:10that was difficult to achieve and we

3:27:13just had these three properties as you

3:27:15know

3:27:16we sold 1718 east shore which is

3:27:20up here to the

3:27:22you can see the hotel adjacent to these

3:27:24properties and north of those is the

3:27:26property that you just sold and i'm

3:27:27happy to report just closed um

3:27:30on friday um to the patels to build a

3:27:33hotel

3:27:34i'm kind of looking more closely you can

3:27:37see

3:27:38our two parcels and there's a third

3:27:40parcel and the proposed purchasers

3:27:42include the family who owns the property

3:27:45to the east of our

3:27:48potrero

3:27:49avenue

3:27:50property there's also a

3:27:52rendering by the current project

3:27:54architect who's here tonight as well i'm

3:27:57just showing

3:27:58just a brief sketch of what it would

3:27:59look like on san pablo avenue if the

3:28:02proposed beer garden and restaurant with

3:28:06outdoor seating were to be built there

3:28:09quickly again this shows you the same

3:28:11uh this is again by studio kda who's

3:28:14here tonight um and you can see petrarol

3:28:16avenue

3:28:17where the proposed brewery would go

3:28:20where there's the blue

3:28:22um

3:28:23excuse me

3:28:24um so that would be about 4 500 square

3:28:26foot of ground floor brewery uh the pink

3:28:28over here would be

3:28:30they're looking at a beer garden and

3:28:32restaurant and then you see the

3:28:34residential um kind of on the interior

3:28:37of these properties

3:28:38and this is the ground floor again

3:28:40showing you a different perspective and

3:28:41showing you that the parking would be

3:28:43kind of tucked behind

3:28:44and

3:28:45the both of the street activating retail

3:28:48uses would be on both frontages

3:28:52uh the terms of the nra and this is very

3:28:54similar to the other enrons that we've

3:28:56entered into namely for uh 1718 east

3:28:58shore and also actually for the mayfair

3:29:00property

3:29:03we're looking at 120 days we think in

3:29:05talking to the proposed purchaser that

3:29:07that should be adequate for them to be

3:29:09able to

3:29:10move forward with the process the

3:29:12process involves that they provide the

3:29:14city with a deposit we use that deposit

3:29:16to cover legal costs contract costs um

3:29:19with goldport littmann and to hire an

3:29:21appraiser to establish fair market value

3:29:24during that time they would also do

3:29:25physical inspections of the property and

3:29:27we would negotiate the terms of the

3:29:29purchase and sale agreement

3:29:31i wanted to note that the purchase and

3:29:32sale agreement we've discussed with the

3:29:34proposed purchaser would likely include

3:29:36a similar clause as we included with

3:29:381718 eastshore which is that if this

3:29:41purchaser does not proceed with their

3:29:42development plans obviously a lot goes

3:29:44into that

3:29:45and instead were to resell the property

3:29:47that the city would receive fifty

3:29:49percent of the net proceeds from that

3:29:50sale

3:29:53um and just lastly um just highlighting

3:29:56again it's a pretty exciting project

3:29:58um

3:29:59in that we could

3:30:00as you can see a lot of the

3:30:02projects that we're getting forward in a

3:30:03specific plan are largely residential

3:30:06and this one's really exciting in that

3:30:07it also brings a strong

3:30:11restaurant

3:30:12brew pub community gathering space

3:30:14amenity to the north side and as you

3:30:17recall from our economic development

3:30:18studies part of what would really

3:30:20support the multi-family development

3:30:21we're doing is to make sure that we also

3:30:22have walkability and kind of an urban

3:30:24lifestyle for people to

3:30:26um to go to so that is my presentation

3:30:29tonight i'm open for questions and uh

3:30:32the proposed purchasers uh deepak

3:30:34argowall and kim marianthal are here as

3:30:36well as the project architect if you

3:30:38have any questions for them

3:30:42council member fidelity

3:30:44just a couple quick questions um so

3:30:47basically an enron gives a leg up to the

3:30:50potential purchasers that come to you

3:30:53first

3:30:54to develop this it basically gives them

3:30:56the exclusive negotiating we wouldn't be

3:30:58looking for anybody else during this

3:30:59time so city council would be saying if

3:31:02you fulfill the terms of the nra

3:31:04we would then city council would have

3:31:07the opportunity to enter into a purchase

3:31:09and sale agreement um and in that case

3:31:12they would be the the purchaser and

3:31:15they came to us the city and that's

3:31:17right is that right

3:31:18and then so the this time period before

3:31:21that each party has has time to

3:31:25to basically vet who they are and to

3:31:27deal with costs and

3:31:30of the property and those kinds of

3:31:32things yeah i mean one of the main

3:31:34things that we do is establish price

3:31:35during that time so they do pay for the

3:31:37appraiser we hire the appraiser with

3:31:38some joint appraisal instructions

3:31:41but exactly it allows them to

3:31:44start to spend money on some due

3:31:45diligence through some

3:31:47development proformas do some get a

3:31:50right of entry from us to test the

3:31:51property

3:31:53and this is similar to what we did it's

3:31:55different than what we did with mayfair

3:31:56where we did go put out an rfp um the

3:31:59that large developable property

3:32:02um kind of necessitated a different

3:32:04process

3:32:06this is similar to what we did with 17

3:32:08eastshore um again that kind of favors

3:32:11adjacent property owners in this case in

3:32:13the staff report i also point out that

3:32:14the adjacent property

3:32:17and this was true also with 1718 east

3:32:19shore really makes the site makes both

3:32:21properties more developable by putting

3:32:23them together and the plans the basic

3:32:25plans that we saw are just sketches

3:32:28obviously the whole process going

3:32:30forward will that's right go through

3:32:32design go through planning this

3:32:34even if you were to enter into a

3:32:36purchase and sale agreement it does not

3:32:37convey any entitlement that still goes

3:32:40through the regular

3:32:41um

3:32:42specific plan entitlement process so

3:32:44finally

3:32:45any comments on the article that we all

3:32:47received about the investors of the

3:32:49property uh so um again i could invite

3:32:52um

3:32:53mr marianthal up to speak uh more what

3:32:56we what we do know through our research

3:32:58on um and discussion with with the city

3:33:00of oakland is that there was uh

3:33:02unfortunately a fire fired a residential

3:33:03property at live work property

3:33:06and

3:33:07mr marianthal took out um

3:33:10you know

3:33:11work through insurance payments and

3:33:13building permits and did take out a

3:33:14building permit to convert

3:33:16that six unit live work to an eight unit

3:33:19live work is what the city of oakland um

3:33:21has shared and then he has shared with

3:33:23me that he decided to not proceed with

3:33:25that

3:33:26due to the economics of the project and

3:33:28decided to sell the property and sold

3:33:30the property and if you'd like more for

3:33:31mr marianthal he's here

3:33:33and uh one more piece that we know is

3:33:36that the property passed its fire

3:33:37inspection prior to prior to the fire

3:33:40so finally just that we didn't put this

3:33:42out to bid

3:33:44because um

3:33:45this would expedite that right that's

3:33:47right so the the compensation agreement

3:33:50and long-range property management plan

3:33:51basically says just sell these

3:33:52properties

3:33:53in an expedition manner so we could just

3:33:55put it on the on the on the market that

3:33:57could be another option

3:33:59that the city

3:34:01[Music]

3:34:02pursues in talking to karen tiedemann

3:34:04from goldberg whitman

3:34:06and looking at kind of pest policies the

3:34:09redevelopment plan really does favor

3:34:11adjacent property owners and the

The Council considered exclusive negotiations for a former redevelopment site.

Background: when the RDA dissolved, the city had to sell its properties under a long-range property management plan.

The proposal: an exclusive negotiating rights agreement with Potrero Avenue Partners for 6111 Potrero and 11335–41 San Pablo Avenue, for about 7,000 square feet of commercial and about 40 units.

An adjacent parcel had just been sold “to the Patels to build a hotel,” and the purchasers included the family owning the neighboring property.

Staff said combining with the neighbor's parcel makes both more developable, and that redevelopment policy favors adjacent owners.

A clause recaptures value if the land has speculative gain, as used for Mayfair and 1718 Eastshore.

Fadelli asked about the agreement and a news article on one investor; staff relayed Oakland's account of a fire at his live-work property and his decision to sell it.

Significant

Exclusive negotiations for the Potrero gateway site — about 40 units and 7,000 square feet of commercial, including a brewery — with the neighboring owner, without a request for proposals.

20 Public land for market rate captions 5700–6194

3:34:12investment that's been made again this

3:34:14makes both their existing property and

3:34:16our property um more developable we've

3:34:19had them for some time and it is also

3:34:21where we came up with the clause that

3:34:22we've put in with the mayfair and the

3:34:241718 east shore which is if it does have

3:34:27speculative value and that you could get

3:34:29more for it um

3:34:31i think for the city i think our longer

3:34:33range benefits are the

3:34:35the um we don't often get to choose who

3:34:38what happens on a piece of property when

3:34:40it's a private property and so when we

3:34:42do it's nice to find a good match for

3:34:44kind of things that we want and we think

3:34:45that the patrol gateway could benefit

3:34:47from this type of uh activity

3:34:49but if they were to turn around and sell

3:34:52it then we would get the the proceeds

3:34:54from that sale that's right thank you

3:34:58i'd like to make a motion yeah i was

3:35:00going to do the same i'll second it to

3:35:0111 15 minutes to 11 o'clock

3:35:04all second

3:35:06all in favor

3:35:07aye

3:35:08as opposed motion passes

3:35:11i do have some questions though go ahead

3:35:13um the

3:35:15fair market value is uh highest and best

3:35:18use or is it the proposed project that

3:35:22combines the three parcels we would be

3:35:24doing the highest and best use based on

3:35:27our two per parcel standalone right so

3:35:29it's it would not necessarily take into

3:35:31ac into account the synergy with the

3:35:36adjacent property that's right because

3:35:38uh from a market standpoint that's not

3:35:39our

3:35:40property correct

3:35:42um

3:35:43we did confirm that we are

3:35:45that one of the um

3:35:48suggestions was that

3:35:50we didn't we are may or may not be

3:35:52working with the current property owner

3:35:53based on online records that were

3:35:56available but i'm assuming that you uh

3:35:59you've confirmed that they are the

3:36:00owners of parcel

3:36:03at six one one five petraro that's right

3:36:06and we could put additional uh

3:36:08[Music]

3:36:09language potentially in the nra if you'd

3:36:11like before we enter into a purchase and

3:36:12sale but we have the grant deed um again

3:36:15you can ask mr argowall and kim

3:36:17marianthal about this but um

3:36:21mr argowall's uh wife and mother um are

3:36:24the are on the property and they have

3:36:26submitted i've asked for a letter that

3:36:28they authorize deepak to be the

3:36:30negotiator on on this piece

3:36:32the typographical errors that are in the

3:36:35our our motion tonight is uh resolution

3:36:38and the address of the adjacent property

3:36:41which is the justification for why we're

3:36:43entering into the senra is not in our

3:36:45resolution so i'm assuming that we can

3:36:48move forward with our motion without

3:36:50necessarily

3:36:51clearing up all of the type of

3:36:54type graphical errors in the uh

3:36:56in the

3:36:57reference to the adjacent property i

3:37:00think that's that's right that was my

3:37:02understanding

3:37:03and

3:37:04uh do is 120 days gonna be enough time

3:37:06for a phase one is a phase one needed i

3:37:08know we

3:37:09we uh vacated this property and did

3:37:12demolition to remove

3:37:14nuisances so i'm assuming that a phase

3:37:16one a phase one not phase one not phase

3:37:18a phase one is not is not needed or will

3:37:21be accomplished within the 120 days uh i

3:37:24believe um uh and i should also say

3:37:27karen tiedemann from goldfarb is here

3:37:29for questions as well for at least an

3:37:30hour yeah

3:37:32um

3:37:32i believe that a phase one would still

3:37:35need to be done on this property

3:37:37i would strongly recommend it for both

3:37:39parties

3:37:41i believe that they did for their

3:37:43property and they have cleaned for uh

3:37:44for the little angie's property that

3:37:46they've bought but for ours you're right

3:37:48we don't we don't have any um

3:37:50certificates on this one from any of the

3:37:51cleanup that we've done i'm not sure uh

3:37:54karen you might know otherwise i know we

3:37:56did for 17 1718 east shore um but that

3:37:59we still did that one required that that

3:38:01phase one indicated that a phase two was

3:38:03required oh interesting in 1718 that

3:38:05would trigger the 90-day extension then

3:38:07that's right okay

3:38:08all right

3:38:10thank you

3:38:11council member no questions council

3:38:13member abelson

3:38:15what is the adjacent property

3:38:17um i think it's vacant now and it was um

3:38:19it was little angie's bar for many years

3:38:22and then it was sold um and then sold

3:38:24again to this um to the current owners

3:38:26in 2017. okay it's been i'm not sure how

3:38:28long it's been vacant but for 10 years

3:38:31and i believe the report said that the

3:38:34purchaser has restaurant experience and

3:38:37that's right and again he's here to

3:38:38speak more about it but i know that he's

3:38:40uh

3:38:41the operator chef

3:38:43if you'd like to hear from him i'd just

3:38:44like to hear what your what you're do

3:38:45what your experience with

3:38:47restaurants are

3:38:58hi my name is deepak agarwal and

3:39:01that

3:39:02property we purchased in 2017

3:39:05to be open a bar and restaurants

3:39:08i own five restaurants a bar in berkeley

3:39:11and oakland

3:39:13i get into the restaurant business since

3:39:152000 so i have about 18-year experience

3:39:1819-year experience

3:39:19i'm

3:39:20chef

3:39:22i'm trying to get in the brewery

3:39:23business because i have a

3:39:25as i said i have a bar bars five bars

3:39:29and try to make my own beer and i choose

3:39:33this property in lcito to be to get into

3:39:36but then i see it's not big enough

3:39:39to be a bar and a beer garden so that's

3:39:42why i approach to a city to see if

3:39:45if i can

3:39:48get their properties and get a brewery

3:39:51and beer garden same times and maybe

3:39:53some residents

3:39:54i i can share you can maybe deepak share

3:39:56some of the uh restaurants that you do

3:39:58own and i'm curious about the names yeah

3:40:01so the one of the restaurants name

3:40:02called tiger lily i own that location

3:40:05about

3:40:0710 years

3:40:08and then i own east bay spice company

3:40:11which is in

3:40:12red cross street campus

3:40:15i own that location is about another 12

3:40:17years

3:40:19i own

3:40:20venus venus restaurant

3:40:22in downtown berkeley

3:40:25that location has been there 17 years so

3:40:27i opened just a second location on the

3:40:29solano

3:40:31used to be kanapina which is i want

3:40:33that location for 18 years but i just

3:40:36changed the concept to the venus branch

3:40:39and then i own barbarian which is bottle

3:40:41shop with the

3:40:43quick service restaurant with the new

3:40:45york style pizza and indian restaurants

3:40:47and before that i open uh four indian

3:40:49restaurants

3:40:50with my own family and then when we

3:40:53separate it so

3:40:55each brother

3:40:56have the all those we still have those

3:40:58restaurant but i won't buy my brothers

3:41:00now but i opened it

3:41:03okay great thank you i've been to a

3:41:04couple of those restaurants thank you

3:41:07thank you

3:41:08okay

3:41:10um let's see do we have any further

3:41:12questions

3:41:15nope okay

3:41:16uh is there a motion uh we do have three

3:41:19speakers sorry speakers um

3:41:21the first speaker is elizabeth

3:41:25thornson followed by robin mitchell and

3:41:28jeff levine

3:41:36is elizabeth still here

3:41:39no then we'll go on to robin mitchell

3:41:46so i'm robin mitchell i'm a resident of

3:41:48el cerrito

3:41:50i know that putting together a

3:41:51development team to build affordable

3:41:52housing is difficult but i'm

3:41:54disappointed that the city-owned

3:41:56property left over from the

3:41:57redevelopment agency which could have

3:41:59been used for affordable housing project

3:42:02is used instead for market rate housing

3:42:04although i assume it will be covered by

3:42:06the inclusionary housing ordinance

3:42:09i would like to know if the city made

3:42:10the availability of the city owned land

3:42:13public which we all learned that it

3:42:15didn't

3:42:16so that it could be put out for bid

3:42:19and i

3:42:21it's just good melanie that you confirm

3:42:23that you did do an rfp for the mayfair

3:42:25property i understand it's a lot bigger

3:42:27property but

3:42:28it seems like even though the parcels

3:42:30are small there should have been a

3:42:31public process

3:42:33and developers who specialize in

3:42:35affordable housing projects such as eden

3:42:37houding housing could have bid on the

3:42:39parcels maybe they wouldn't have been

3:42:40interested because they're too small but

3:42:42at least they would have had the option

3:42:43to do that

3:42:44there's also a possibility that the

3:42:46projects could still be a joint effort

3:42:48between the existing owner

3:42:49of the third parcel and an affordable

3:42:51housing nonprofit developer

3:42:53um

3:42:55that would have maybe been a little bit

3:42:56more possible

3:42:58if the whole

3:43:00availability of that land had been made

3:43:01public

3:43:04and it um

3:43:07seems like the city even though they may

3:43:09not have to should apply the principles

3:43:11of the surplus land act to the parcels

3:43:13in question

3:43:14even if they're not required to do so

3:43:17thank you thank you the next speaker is

3:43:21jeff

3:43:22levin

3:43:24good evening jeff levin um

3:43:27first of all i want to say that we look

3:43:29forward to the redevelopment of this

3:43:31long blighted parcel and the idea of

3:43:34having a mixed-use

3:43:36relatively dense project

3:43:38you know just blocks from the bart

3:43:40station

3:43:41makes a lot of sense to us

3:43:43that said i want to share some of the

3:43:45concerns about the process it's a little

3:43:47disturbing to us that a piece of public

3:43:49land was offered up to one buyer without

3:43:52any kind of request for proposals

3:43:55process it may well be the case that the

3:43:57best way to develop this is in concert

3:43:59with the adjacent property but without

3:44:02any kind of competitive process we don't

3:44:04know what other alternatives might have

3:44:06come forward and that doesn't seem

3:44:08terribly appropriate for public land

3:44:12apparently the city has determined that

3:44:14this is not subject to the surplus land

3:44:16act because if it were you would be

3:44:19required to offer it first to developers

3:44:21of affordable housing who would provide

3:44:23a minimum of 25 of the units affordable

3:44:26with priority going to

3:44:30whoever proposes the greatest number of

3:44:32units at the deepest level of

3:44:34affordability

3:44:35further the surplus land act would also

3:44:38require that if you do not reach

3:44:39agreement with the developer of

3:44:41affordable housing but um dispose of it

3:44:44and it's developed for

3:44:46market rate housing then at least 15

3:44:48percent of the units would have to be

3:44:50affordable all of this is important

3:44:51because all of that exceeds the city's

3:44:54inclusionary requirement of 10 percent

3:44:57so at a minimum we would hope that in

3:45:00negotiations you seek to get the maximum

3:45:02amount of affordable housing um

3:45:05uh the mayor mentioned earlier tonight

3:45:08the casa recommendations one of which is

3:45:10to maximize the use of public land for

3:45:13housing and in particular for affordable

3:45:16housing

3:45:17affordable housing developers have a

3:45:19great deal of difficulty competing in

3:45:21the private market right now for sites

3:45:23which makes public land especially

3:45:25important

3:45:27so we we hope that you will try and

3:45:29maximize that and get some

3:45:32public benefit from sale of this

3:45:33property by getting as much affordable

3:45:36housing um as we can particularly as i

3:45:38mentioned earlier tonight you are way

3:45:40ahead on meeting your goals for market

3:45:42rate housing but we are falling short on

3:45:45meeting our goals for affordable housing

3:45:47in particular for low um as opposed to

3:45:50very low income housing so um again i

3:45:53just hope you'll direct staff to

3:45:56include that in the negotiations thank

3:45:58you thank you

3:46:00and the last speaker tonight on this

3:46:02item is kim marienthal

3:46:11thank you for giving me a chance to

3:46:13speak to you i'm one of the

3:46:15co-developers of the proposed project

3:46:20we determined that um

3:46:22this is a a rare opportunity to take

3:46:25land that

3:46:27is

3:46:27rather unusable in the way it's

3:46:30configured and combining it with the

3:46:32adjacent property that we are involved

3:46:34with to make it into something that's

3:46:37viable

3:46:38to create some

3:46:40needed housing and also a restaurant and

3:46:43brew pub that

3:46:44would benefit the area as well

3:46:47so i just hope the council you know i've

3:46:49heard many things tonight about

3:46:52the need to

3:46:54provide more housing and even if it's

3:46:57not

3:46:59specifically affordable housing it will

3:47:02help relieve

3:47:03the pressure on the housing market to

3:47:05build more housing in a perfect location

3:47:08like this that's transit oriented and

3:47:10and

3:47:11will meet the needs of many people in

3:47:14this community

3:47:16thank you

3:47:20are there any further questions from the

3:47:21council

3:47:25do i have a motion

3:47:27i want to ask one quick question

3:47:30um

3:47:30the

3:47:32uh

3:47:34the sale of this land

3:47:36is

3:47:37we we only get 22 percent of it so we

3:47:39can't do all of the

3:47:41normal uh requirements for

3:47:44participation of affordable housing it's

3:47:46so it's just whatever's in the

3:47:49um

3:47:50inclusionary ordinance

3:47:52um so

3:47:54um in discussing with uh council it is

3:47:56not subject to the surplus lands act as

3:47:59uh it was acquired for development um

3:48:02and

3:48:03on the contrary actually we have to get

3:48:05fair market value for it and so as you

3:48:07know next door and with

3:48:10eden with bridge that housing is

3:48:12actually being provided at at no cost in

3:48:15this case by

3:48:16us by the former redevelopment agency

3:48:18and in that case by the market rate

3:48:20developer

3:48:21um so we do have to actually sell it at

3:48:22fair market value and um

3:48:26you're right i mean as purchase and sale

3:48:27agreement you could probably you could

3:48:29entertain to put in um some other terms

3:48:32i think we'd want to recommend that

3:48:33performance and um other things were

3:48:35involved but otherwise it would be our

3:48:36inclusionary um requirement we did have

3:48:38discussions with the proposed developers

3:48:40you know as operators of restaurants i

3:48:42think we've all heard that uh restaurant

3:48:44worker restaurants are having a are

3:48:46struggling um with housing so we thought

3:48:48he could end up having a unique

3:48:49opportunity by by uh owning housing both

3:48:52adjacent to his own restaurant and uh

3:48:54but um right now it would just be it

3:48:57would be subject to our 10 inclusionary

3:48:59requirement

3:49:00um

3:49:02and i should just point out about the

3:49:03arena actually and we can talk about

3:49:05this during our specific plan update but

3:49:06we're actually doing very well on our

3:49:08our low and very low with the bridge um

3:49:1067 units still to be funded project

3:49:13i will uh acknowledge that

3:49:16when mr biggs was here and i suggested

3:49:18why didn't you offer some units but

3:49:19below 500 square feet and he said that

3:49:21they weren't possible i do want to

3:49:23acknowledge that there's

3:49:25several studios in this proposal below

3:49:27500 square feet and i want to give a

3:49:29shout out for that because that is

3:49:31something that i think will work

3:49:33and

3:49:34and it affordability by design if that

3:49:36if that if i want to misuse that

3:49:38terminology so

3:49:40um

3:49:42i do want to certainly

3:49:44acknowledge that our inclusionary

3:49:46ordinance uh is out there and

3:49:48anything you can do to

3:49:50exceed that will be greatly

3:49:53appreciated by the council

3:49:55let me just interrupt for a minute i

3:49:56need another motion i move that we

3:49:58extend the meeting for 10 minutes

3:50:01i'll second that

3:50:02all in favor hi hi

3:50:04motion carries

3:50:07continue are you well that was it okay

3:50:10i can make the remote motion if you

3:50:11would like me to move on

3:50:14i move a resolution of the city council

3:50:16of the city of el cerrito authorizing

3:50:18execution of an exclusive negotiating

3:50:20rights agreement with the potrero street

3:50:22partners for the disposition of 6111

3:50:25petraro avenue and

3:50:2811335 and

3:50:3011341 san pablo avenue i'll second

3:50:36all in favor

3:50:38aye

3:50:38is opposed

3:50:40motion carries

3:50:43all right

3:50:45thank you

3:50:48okay so

3:50:50last on our

3:50:53agenda here uh city council local and

3:50:56regional liaison assignments do you have

3:50:58any reports

3:51:01i've got uh one from the financial

3:51:04advisory board in addition to their uh

3:51:07item that they took up tonight under 7b

3:51:10they are

3:51:11having discussions about

3:51:14um around

3:51:17the real property transfer tax and the

3:51:21governance of measure v and comments uh

3:51:23with regards to that so

3:51:26they

3:51:27they are

3:51:28uh going to have an ongoing discussion

3:51:31of that

3:51:33at their at their level the crime

3:51:35prevention committee is

3:51:37uh has several subcommittees some one is

3:51:40actually specifically

3:51:42focused on membership recruitment for

3:51:44their their committee which is uh

3:51:46fantastic

3:51:48for them to be focused on

3:51:49and the other is to

3:51:51revitalize the neighborhood watch

3:51:53program which has

3:51:55gone up and down over time

3:51:57so

3:51:58that's my report from those two

3:52:00committees

3:52:01okay any further reports

3:52:05all right and with that we will adjourn

3:52:08our regular meeting

3:52:10the next city council meeting will be

3:52:12tuesday february 5th

3:52:142019 at 7 pm thank you

3:57:35you

Residents asked why public land was going to market-rate housing, and liaison reports closed the meeting.

Asked whether 120 days was enough, staff said a phase one environmental assessment would still be needed, since the city had no clean-up certificates for this site; if it called for a phase two, a 90-day extension would follow.

Buyer Deepak Agarwal, a chef whose restaurants include Tiger Lily and East Bay Spice Company, said the adjacent former Little Angie's site he bought in 2017 was too small, so he approached the city to add a brewery and beer garden “and maybe some residents.”

Robin Mitchell: “I'm disappointed that the city-owned property left over from the redevelopment agency, which could have been used for affordable housing, is used instead for market rate housing.”

She asked why the land had not been offered publicly, so that affordable housing developers could bid, and urged the city to apply the principles of the Surplus Land Act even if not required.

Jeff Levin objected that public land was offered to one buyer without a request for proposals, noted the Surplus Land Act would require 25 percent affordable units for affordable developers or 15 percent otherwise, and said “affordable housing developers have a great deal of difficulty competing in the private market… which makes public land especially important.”

Co-developer Kim Marienthal said combining the awkward parcel with the adjacent property would create housing and a brew pub in a transit-oriented location.

Staff: the site was not subject to the Surplus Land Act and had to sell at fair market value; the project would carry the 10 percent inclusionary requirement, and the city was doing well on low and very low income targets. A councilmember welcomed the several studios below 500 square feet.

The agreement was approved.

In liaison reports, the FAB was discussing “the real property transfer tax and the governance of Measure V”.

Significant

Residents object to selling former redevelopment land for market-rate housing without a public process; staff say the land must be sold at fair market value and is not subject to the Surplus Land Act.