HomeMy WebLinkAboutMin - CC - 1979.05.08350
CALL TO ORDER
BURLINGA}{E, CALIFORNIA
May 8, 1979
PLEDGE OF ALLEGIANCE
The pledqe of allegiance to the flag was leil by City Attorney
Jerome F. Coleman.
ROLL :
COUNCILMEMBERS PRESENT: AMSTRUP, BARTON, CROSBY, MANGINI , MARTIN
COT,NCILMEMBERS ABSENT: NONE
Mayor Amstrup announced this special meeting was being held pur-
suant to the announcement at the April 24th meeting that Council
woutd meet to study and discuss rent stabilization following that
public discussion. He stated that he had requested information
from the Einance Director regarding cost of ailministration of the
ordinance proposed by the proponents of rent control. Finance
Director aiqyies, afler study, submitted a memorandum of "ba1lpark"
projected costs based on the experience of Beverly Hills, the
Lomirunity with rent control which most closely resembl-es Burlingame
in populition and ratio of rental units. He estimated a probable
co"l of $34,335 for the first year which included a fuII-time ad-
ministrative aide and half-time steno-clerk (including fringe
benefits) , part-time interns for telephone inquiries for initial-
2-month period, and office expense. He estimated the cost for a
special or consolidated election arising out of an initiative
pltitio., at $8,000 to $10,000. Based on 5,159 units in structures
which woufd be subject to control , he estimated a charge of ap-
proximately $7.25 per rental unit.
The estimate by the City Clerk of the cost of a special election
is $9,000+, anl the cosl of an initiative placed on the November
qeneral election ba11ot is $5,000.
Mayor Amstrup reviewed three possible procedures:
put the proposed ordinance on the ballot; (2) pass
ordinance or put a changed ordinance on the balIot,
nothing.
He stated that after studying the submitted ordinance carefully,
he felt there are sectj-ons which would not be beneficial to renters,
landlords or the city of BurJ-ingame. An example is that there is
no provision for che6ks and balinces in the ordinance in that the
boaiil established has no responsibility to anyone, and is composed
of appointed, not elected, members. It is enabled to charge fees,
ana fris the power to make determination on all matters not spec-
ifically covered by the ordinance.
councilman Mangini was concerned about the lack of specific def-
initions of terms such as "limited income," gouging" and "senior
citizen. " He also does not believe alf taxpayers should bear the
cost of atlministration for the benefit of only one segment of the
residents. He said he felt this type of legistation should be dir-
ected by baflot.
Councilwoman Barton questioned the power conferred by the proposed
ordinance for the appointed board to request funds as necessary
without limitation; ihe also questioned the timitation of the type
of expenditures to be considered in determining rent increases.
Councilman Crosby disagreed with portions of the proposed ordinance
inJ suggesteal th;t it 6e worked over, or council should prepare its
own toii of ordinance which would be more protective of the rights
(1) pass or
a changedor (3) do
A special meeting of the Burtingame City Council was held on May
8, 19'79, in the City Ha1I Council Chambers. The meeting was cafled
to order at 8:05 p.m. by Mayor Irving S. Amstrup.
351
of the renter as well as the landlord. Because
difference, he belj-eved the matter should go to
e lection .
of the cost
the general
Councilman Martin stated that, though he did not believe rent
control a soLution, inasmuch as a large group of people are
having problems with rent, he agrees the matter should be voted
upon, hopefully at the general election. tte pointed out that
if an ordinance is passed by initiative action the law can be
changed only by vote of the efectorate. He recommended that
Council direct the City Attorney to draft an ordinance to be
submitted to the voters which would be more fair to both renters
and landlords than the ordinance prepared for the Coalition of
Renters based upon the Beverly Hill-s ordinance. It was suggested
that it be very general so that rules and regulations might be
easily altered if they proved unworkabfe. A rollback of rents to
a date such as July 1, 1978 could be considerecl. Certain units
should be excluded, such as single family, duplex and 3 and 4 unit
buildings with one unit owner occupied, and other exclusions of the
proposed ordinance with the addition of all nel., construction com-pletefy excluded as well as high-priced and luxury units. The
board should be a minimum of five members with more than one public
member, members to be appointed for staggered terms and to serve at
the pleasure of the majority of Council, as do members of other
boards and commissions. Since the intent of such legislation is to
control unreasonable rent increases, not to deprive the owner of
rental property reasonable use of property and reasonable return on
investment, rules and regulations set up by the board should be
adopted after public hearing, but subject to the approvaf of the
City Council who should retain the right to change the rules. They
should provide for an annual cost of living increase based upon a
standard. index to permit recovery of increased operatinq costs, and
be designed to allow pass through of other costs, such as capital
improvements.
The administration of the board should be under the direction of
the City Manager with the Director of Finance as the operating
head. A11 costs of administration, including overhead and pro-
portionate share of the sal-aries of the Finance Director and
building and fj-re inspectors, should be paid for by the rental
units subject to control . so that the general taxpayers do not pay
the cost of a program for the benefit of a select group of citizens.
A11 personnel invofved in administration should be eliminated from
civil servj-ce and from normal employee fringe benefits. An effort
could be made to contract for services of a private orgahization,
such as Peat, Marwick & Mitche11, who have expertise for operation
of this type of service. The initial fee should be about $7.50per unit payable in advance for the year July 1, 1979, to June 30,
J-980, and should be adjusted annually by the rent control board,
subject to approval by the City Council. A11 expenditures of funds
by the board should be subject to the control of Council.
The ordinance shoultl have a section on evictions, probably simifar
to that in the Beverly Hj-11s ordinance, to prevent retaliatory
action by landlords. It should also provide for expiration, per-
haps on July 1, 1981, with provision that it can be extended by
the City Council.
It was suggested that such an ordinance be alrafted by staff,
circulated to the people concerned, and then Council hold a public
hearing. After necessary revisions are made such an ordinance
might be placed upon the ba11ot. The City Attorney was asked to
research if it would be possible to get an advisory response from
the electorate to a question such as, "Do you want a rent controf
ortlinance?" If the answer were yes, then Council would be bound to
enact the Iaw.
Councilmembers discussed the advantage of a city prepared ordinance
on the batlot to an initiative measure; the preferability of an
ordinance or an advisory Question bej-ng placed before the voters;
the advisablility of a roll-back to rents at a time related to the
enactment of Proposition 13; the amount and period to be covered by
the proposed annual feei methods of insuring that the cost of
admin.istration is paid by those who would benefit directly from
such legislation; methods of determining annual permitted rental
increases and assurance that increased. capital costs were passed
throuqh; and means of enforeement of an ord.inance.
The meeting reconvened at 9;25 following a short recess,
At Mayor Amstrup's request City Attorney Coleman and City
Clerk Eve1yn HilI advised the meeting of the time frame,
necessary action and cost involved in an j-nitiative process,
ADJOURNMENT
The meeting adjourned at 9:50 p.m
Respectfully submitted
HI LL
Clerk
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EVEIYN
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City
352
Councilman Mangini, after referring again to the courses of
action open to Council, questioned whether enactment of an
ordinance would negate the need for the matter to be placed on
the ballot at the general election. ft was the opinion of themajority of Council that the issue of rent control for the City
should be directed by the electorate, Councilwoman Barton dis-
senting because she did not wish to equivocate her position in
opposition to such legislation. After further discussion the City
Attorney was instructed to draft a form of ordinance, embodying
the provisions discussed earlier in the meeting, for consideration
by Council at its June 7th study meeting. After necessary
revisj-on, the proposed ordinance will be presented for comment
and discussion by renters, owners of rentaf property and thepublic generally, with the intent that the ordinance or an
advisory question will be included on the general election
bal lot .