CC 1993 12-16 CITY OF POWAY, CALIFORNIA
MINUTES OF THE CITY COUNCIL SPECIAL HEETING
DECEMBER 16, 1993
The December 16, 1993, special meeting of the City Council of the City of
Poway, was called to order at 5:08 p.m., by Mayor Higginson at the City Council
Chambers, 13325 Civic Center Drive, Poway, California.
COUNCILHEHBERS PRESENT AT ROLL CALL
Mickey Cafagna, Susan Callery, Tony Snesko, Don Higginson
C0UNCILNEMBERS ABSENT AT ROLL CALL
Bob Emery
STAFF MEMBERS PRESENT
James Bowersox
Marjorie Wahlsten
Steve Eckis
John Fitch
Peggy Stewart
Reba Wright-Quastler
Warren Shafer
David Narevsky
City Manager
City Clerk
City Attorney
Assistant City Manager
Director of Administrative Services
Director of Planning Services
Director of Redevelopment Services
Redevelopment Manager
Also present were Assemblyman Jan Goldsmith and Tim Coyle, Director of the
State's Department of Housing and Community Development. The purpose of the
meeting was to discuss pending and proposed state legislation regarding
housing. (701-11)
City Manager Bowersox stated the laws are intended to provide housing but cities
need flexibility that can reflect their differing conditions. For example, in
Powaywe have diminished opportunities because of our topography. Assembly Bill
51 sponsored by Assemblyman Goldsmith would have given that flexibility.
Unfortunately it was gutted and replaced with HCD's programs. He expressed a
hope that Director Coyle would be able to give the Council some insight regarding
that process.
Assemblyman Goldsmith stated the current housing element system administered by
HCD has been labeled "dysfunctional" by Liz Hill, legislative analyst. AB 764
would permit conversion of units to low and moderate income units and
rehabilitation of units owned by low and moderate income persons to count as
units toward the jurisdiction's goals. AB 51 would enable a jurisdiction
financing construction in a neighboring jurisdiction to receive credit for the
units. The League of California Cities opposed this legislation. HCDrequested
a comprehensive approach by getting all the parties together including realtors
and the construction industry. Director Coyle wanted to run their proposal by
some cities and he suggested this meeting with the Poway City Council would be
a good opportunity.
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Page 2 - CITY OF POWAY - SPECIAL MEETING - December 16, 1993
Director Coyle stated that housing elements have become more of a process and
less of something to solve the state's problems. The state's desire is to
provide critical infrastructure to support improvement in economic viability.
The demands for housing state-wide are huge. 250,000 units are estimated to be
needed each year to provide for population growth and new household formation.
Only 96,000 were produced in 1992. He agreed the law needs reform. It should
be production-oriented. It needs to be flexible because 527 communities are not
the same. Paperwork needs to be eliminated. Costs of development need to be
reduced.
Bruce Tarzy, 15912 Ranch Hollow Road, President of the Green Valley Civic
Association, spoke in favor of flexibility and respecting the marketplace.
Director Coyle stated the state's only concern should be "are you doing your
share." Not how you're doing it. But you can't exempt an area from growth. In
response to query from Councilmember Cafagna he stated that Poway needs to move
the League's leadership in the direction we want to go.
Council thanked both Assemblyman Goldsmith and Director Coyle for attending this
meeting.
ADJOURNMENT
Mayor Higginson adjourned the meeting at 6:05 p.m.
Marjorie.K. Wahls{en, City Clerk
City of P~oway
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CITY OF POWAY, CALIFORNIA
MINUTES OF THE CITY COUNCIL ADOOURNED REGULAR MEETING
DECEMBER 16, 1993
The December 16, 1993, meeting, adjourned from the December 14, 1993
regular meeting of the City Council of the City of Poway, was called to order at
6:10 p.m., by Mayor Higginson at the City Council Chambers, 13325 Civic Center
Drive, Poway, California.
COUNCILMEMBERS PRESENT AT ROLL CAll
Mickey Cafagna, Susan Callery, Tony Snesko, Don Higginson
COUNCILMEMBERS ABSENT AT ROLL CALl
Bob Emery
STAFF MEMBERS PRESENT
James Bowersox
Marjorie Wahlsten
Steve Eckis
John Fitch
Peggy Stewart
Warren Shafer
David Narevsky
PUBLIC ORAL COMMUNICATIONS
Mayor Higginson explained the ~rocedure for Public Oral Communications.
was no one present wishing to speak.
City Manager
City Clerk
City Attorney
Assistant City Manager
Director of Administrative Services
Director of Redevelopment Services
Redevelopment Manager
There
'iTEM 3 (1601-11)
POWAY ROYAL ESTATES RENT STRUCTURF
Jeff Beers, Chairman; Bill Cross; Larry Quate; Linda Oravec; Linda Harkleroad;
and Richard Bentley were present from the Housing Commission. Item introduced
by City Manager Bowersox. The City Council requested a joint meeting with the
Housing Commission to discuss proposed rents at Poway Royal Estates as a result
of reviewing alternatives to the proposed five percent rent increase scheduled
for January 1, 1994. He reminded the Council that Mr. Coyle, Director of
California's Housing and Community Development Department stated we need to meet
the needs of low and moderate income families. That is why the Redevelopment
Agency bought Poway Royal Estates. By the late 1980's people were in danger of
losing their homes because of rent increases by the owner. The Agency issued
bonds to use for financing, knowing that there would be a negative cash flow but
with an annual rent increase built into the financing plan.
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Page 2 - CITY OF POWAY ADJOURNED REGULAR MEETING - December 16, 1993
Staff report by Redevelopment Director Shafer. He stated there are three goals
in the Agency's ownership of the mobile home park: 1) maintain affordability;
2) place the owners on a rental rate plan similar to Poinsettia's whereby rent
increases are the CPI to a maximum of 5%; and 3) stabilize the rents. In order
to meet these goals Agency staff has been working on two major areas. The first
has been to lower debt payments by refinancing the existing bonds. The second
is to use low/moderate income housing fund to acquire a portion of the Park. In
order to use these funds there must be deed restrictions limiting the income
levels of households residing in the housing units directly assisted by housing
funds. This also limits resale to persons qualifying as affordable income
earners. This may not be as onerous as it appears since a family of four with
an income of $52,700 is moderate. Those residents that do not qualify by income
and do not wish to deed restrict their unit will continue to pay a 5% annual rent
increase. Those signing the deed restriction will have an 2.8% increase in May,
1994 and approximately 3% in January, 1995. Staff did meet with the park
residents last week to explain the process.
City Manager Bowersox stated that staff will be coming to Council for
authorization to refinance the debt and a recommendation on how to modify the
Redevelopment Agency's budget. In response to a query, he stated that the
percentage of units that meet the income test is the percentage of the park that
can be purchased using low and moderate funds. However, units that don't qualify
by income can still receive the reduced rent increases if they agree to deed
restrict their unit. There could be an open enrollment each year prior to the
rent increase for anyone who doesn't choose to deed restrict at this time.
Residents present who had questions included:
Andrew Nowicki, 13227 Dana Vista
Andy Pitcher, 13031 Corona
Chip Cochrane, 13217 Alpine
Pat Palmer, 12829 E1 Rey Vista
Council and staff concurred there are sections of the resale agreement that needs
clarification.
Motion by Councilmember Snesko, seconded by Councilmember Callery to have staff
prepare reports that would authorize the refinancing of Poway Royal Estates and
utilize the Housing Fund to purchase a portion of the mobile home park; and
circulate the resale agreement to the residents. Motion carried 4-0 with
Councilmember Emery absent.
RECESS AND CALL TO ORDER
Mayor Higginson recessed the meeting at 7:20 p.m. and called it back to order at
7:25 p.m. with all Councilmembers present except Councilmember Emery.
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Page 3 - CITY OF POWAY ADJOURNED REGULAR MEETING - December 16, 1993
ITEM 4
DISCUSSION WITH HOUSING COMMISSION
REGARDING GOALS AND DUTIES
Assistant City Manager Fitch and Redevelopment Manager Narevsky reviewed what the
Housing Commission has done since they were appointed in January, including
touring each facility, dealing with the Poway Royal issues, considering
applications for rent subsidies, assisting in preparation of the 1993-94 budget;
and acting as a sounding board for various complaints in the mobile home parks.
Mayor Higginson commended the Commission for their work noting they have a lot
of responsibility and authority and are dealing with very emotional issues.
Chairman Beers suggested they meet with some other Housing Commissions to see how
they do their job in order to gain some perspective.
Council and Commission discussed several issues including meeting attendance
requirements for Commissioners; and training park personnel to document
complaints and provide the paperwork the City Attorney needs for any enforcement.
ADJOURNHENT
Mayor Higginson adjourned the meeting at 8:35 p.m. on motion by Councilmember
Callery, seconded by Councilmember Cafagna.
Marjori~,K. Wahlsten, City Clerk
City f~oway
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