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HomeMy WebLinkAbout09/28/1993 Business Meeting 43:0 CITY OF YAKIMA, WASHINGTON SEPTEMBER 28, 1993 BUSINESS MEETING 1. ROLL CALL I/ The City Council met in session on this date at 2:00 p.m., in the Council Chambers of City Hall, Yakima, Washington. Mayor Pat Berndt, presiding, Council Members Clarence Barnett, Henry Beauchamp, Bill Brado, Lynn Buchanan, Skip Semon and Bernard Sims present on roll call. City Manager Zais, Assistant City Attorney Paolella, and City Clerk Roberts also present. 2. INVOCATION /PLEDGE OF ALLEGIANCE The Pledge of Allegiance was led by Council Member Buchanan. 3. OPEN DISCUSSION FOR THE GOOD OF THE ORDER A. PROCLAMATIONS (IF APPLICABLE) Mayor. Berndt announced that Agenda Items Nos. 6 and 7 have been deferred for two weeks, until October 12, 1993, at the request of the applicant. 4. CONSENT AGENDA Mayor Berndt referred to the items placed on the Consent Agenda, questioning whether there were any additions or deletions from either Council members or citizens present. It was the general consensus to remove Items Nos. 11 and 12 from the Consent Agenda. The City Clerk then read the Consent Agenda items, including resolutions and ordinances by title. It was MOVED BY SIMS, SECONDED BY BUCHANAN, THAT THE CONSENT AGENDA, AS AMENDED, BE ADOPTED. The motion carried by unanimous roll call vote. (Subsequent paragraphs preceded by an asterisk ( *) indicate items on the Consent Agenda handled under one motion without further discussion.) *5. APPROVAL OF THE MINUTES OF THE MAY 4, 1992 ADJOURNED MEETING, SEPTEMBER 7 1993 ADJOURNED AND BUSINESS MEETINGS AND SEPTEMBER 14 AND 2 1, 1993 BUSINESS MEETINGS The minute of the May 4, 1992 Adjourned meeting, September 7, Adjourned and Business meetings and September 14 and 21, 1993 Business meetings, were approved, having been duly certified accurate by two Council members and no one present wishing to have said minutes read publicly. •y �. �• ._.'t:._. .. _..,. _.ye:.:c — ". _....mow, SEPTEMBER-A 1993 4 31 • 6. PUBLIC HEARING ON POWERHOUSE ANNEXATION (See Ordinance annexing property -- Continued from 9/21/93) This item was deferred until October 12, 1993. I/ 7. PUBLIC MEETING TO CONSIDER HEARING EXAMINER'S RECOMMENDATION ON THE REZONE OF PROPERTY (Continued from 9/21/93) : A. ORDINANCE REZONING PROPERTY IN VICINITY OF 4400 POWERHOUSE REQUESTED BY DEL MATTHEWS This item was deferred until October 12, 1993 B. ORDINANCE REZONING PROPERTY AT 4411 W. POWERHOUSE RD., REQUESTED BY MYRON ABRAMS AND GEORGE MULL This item was deferred until October 12, 1993. 8. PUBLIC HEARING ON REZONE OF PROPERTY IN THE VICINITY OF CHESTERLEY PARK, OFF NO. 34TH AVENUE, REQUESTED BY EDWIN PARTCH AND RUDY GASPARAC This being the time set for the public hearing, Dan Valoff, Associate Planner, explained the purpose of this public hearing is to consider the Hearing Examiner's recommendation on an application submitted by Edwin Partch and Rudy Gasparac for the rezone of property from M -1, Light Industrial, to R -3, Multi - Family Residential, and a Class 2 review °of a 22 -unit Planned Residential Development. The proposal is a 2.21 acre tract of land located at 1010 North 34th Avenue, which is south of River Road and immediately east of Chesterley Park. On August 26th, the Hearing Examiner conducted a public hearing on the proposed request and recommended that the rezone be granted and the Class 2 use be approved subject to nine conditions stated in the decision. Mr. Valoff asked Council members to accept the Hearing Examiner's recommendations and adopt the ordinance approving the rezone request and the Class 2 use of the 22 -unit Planned Residential Development. Mr. Valoff was available to answer any questions. Mayor Berndt opened the public hearing and asked for anyone wishing to speak in favor of the Master Application. Ed Partch, 4009 Fecter Road, Yakima, explained that Mr. Gasparac has reviewed the recommendations by the Hearing Examiner and is in full agreement with all of them. There is a great need for this type of housing, and this property has amenities, a great location, and is an excellent buffer between the light industrial zone and Chesterley Park. Mr. Partch further explained there was, at the Hearing Examiner's meeting, two letters from the neighbors in agreement with .the project. Council Member Brado described the project as a good one. 2 432 SEPTEMBER 28, 1993 Mayor Berndt asked if anyone else wanted to speak in favor of the project. There being no one, she asked if there was anyone who wanted to speak in opposition to the project. There being no one, Mayor Berndt closed the public meeting. After all Council members declared no exparte contact, and Ordinance No. 93 -90 having been read by title, it was MOVED I/ BY BEAUCHAMP, SECONDED BY SIMS, TO PASS THE ORDINANCE. The motion carried by unanimous roll call vote. ORDINANCE NO. 93 - 90, AN ORDINANCE relating to zoning; rezoning property located at 1010 North 34th Avenue in Yakima, Washington from Light Industrial (M -1) to Multi - Family Residential (R -3); amending the zoning map of the City of Yakima; approving a Class 2 use (Planned Residential Development in the R -3 zone); and subject to all of the conditions contained in the Hearing Examiner's Recommendation. 9. PUBLIC MEETING ON 1994- -1998 COMPREHENSIVE HOUSING AFFORDABILITY STRATEGY (CHAS) REPORT (SEE RESOLUTION) (PLEASE BRING MATERIAL PREVIOUSLY PROVIDED) This being the time set for a public meeting, Vaughn McBride, Housing Planner, described the three sections of the report -- Community Profile, Five -Year Strategy, and Annual Plan. The document is an update of the initial CHAS as submitted for Fiscal Year 1992 with appropriate statistical updates and the inclusion of Census Data that was not available at the time of initial submission. He explained the only changes in this document of any significance are the utilization of HUD's redesigned format and the inclusion of a lead base paint policy. Council Member Barnett referenced page 53 of the report, item B. Strategy to Address Negative Effects, the first sentence of the paragraph and commented that he felt there was a contradiction with the material on pages 61 - 63 that should be considered. Mr. McBride commented that the statement is made primarily to address our priorities. The number one priority out of five is the provision of affordable housing units for the residents of Yakima. At the present time, there is a scarcity of affordable housing units for those members of our community of which 70% earn less than the median area income. Mayor Berndt opened the public hearing and asked for anyone wishing to comment. Dan Arnett, with Rental Service of Yakima, submitted Exhibits Nos. 1 - 9. He explained that he represents himself and he doesn't own any rentals. He said there are various discrepancies in the report and changes need to be made before it is submitted. He asked when the report has to be submitted to HUD and also what HUD does with the 3 433 SEPTEMBER,4 28, 1993 report once it is sent. to them. ,Dixie Kracht, Block Grant Manager, explained the CHAS document replaces the Housing Assistance Plan due to changes in legislation during recent years. HUD will not put any federal funds into a community without an accepted, documented need listed in the CHAS document. Ms. Kracht further explained, in order to apply for entitlement funds next year, the document must be submitted to HUD by October 31, 1993. A 60 -day review period is needed for acceptance, changes, or amendments that might be requested. Mr. Arnett further asked who uses this report, what is it used for, and is HUD the only one who uses this report. Ms. Kracht explained that this comprehensive document is to be used by any entity that proposes development of any type of housing, either public or private, in the community. Anyone, including federal, state, and local governments, as well as developers, has access to this document. At this point with the aid of an overhead projector, Mr. Arnett referred to page 47 of the report, Summary of the Five -Year Strategy, and asked if this document becomes a mission statement showing how and what services will be provided in the area. Mr. Arnett commented that the list of providers does not include anyone from the private sector. Ms. Kracht explained that the list is very comprehensive and is comprised of various entities within the community and represents not only the private sector but the overall community. Mr. Arnett further stated that there are rental property owners who were not aware of this report. He challenged the accuracy of the CHAS document by further indicating the statistics in the report are not consistent with his figures. He requested his statistics be added to the document. Council Member Semon asked Mr. Arnett to be more specific. Council Member Beauchamp expressed concern that Mr. Arnett's comments seem to indicate that the private sector is providing low - income housing now and the private sector has not been allowed adequate opportunity for input into this CHAS document, which describes the needs for housing for low - income families. He asked Mr. Arnett if low - income housing is being taken care of by the private sector. Mr. Arnett commented that the CHAS document does not confine its concerns to only low income. The low income area is where we feel the Housing Authority and those kinds of groups should be working. Mayor Berndt explained that the City of Yakima's housing program is not the Housing Authority. The Housing Authority is completely separate and different from the City's housing program. Council Member Beauchamp asked Mr. Arnett to address what is specifically omitted. Mr. Arnett referred to Page ix, "Area citizens were encouraged to participate through their attendance, and comments regarding document contents. No additional information was provided for or against this document." Mayor Berndt explained that this public hearing is not the only one that has been held on the CHAS document, and there was not any public comment at the other public hearing. 4 44 SEPTEMBER 28, 1993 Mr. Arnett referred to Page 5, "The estimated rental vacancy rates was unchanged (in this area for) the previous quarter . . ." Mr. Arnett commented that there has been a change in available housing in the area and rental vacancy factors have been tracked through the community for comparison. Taking the seven days of September 21 through 27 over the last four years, the average number of available rental housing, as listed in the Yakima Herald, has gone from an average of 16 inches in the paper up to 47 inches. Mr. McBride explained that the rental vacancy rates statements on Pages 4 and 5, are based on data from the Quarterly Economic Report for the Third Quarter of 1992. He further explained that the Rental Association, a private sector organization, submits data toward publication in that report. Editing through some of the statements, Mr. Arnett referred to Page 5, first paragraph, sixth line down, "two - bedroom apartment, unfurnished, rents for $450 a month ", Page 23, third paragraph, fifth line down, "two- bedroom apartment rented in 1980 for $220, now it rents for $478, and in 1992 it rents for $573." Mr. McBride commented this information was based on the latest rental surveys conducted by the Yakima Housing Authority. Asking what year was represented when referring to the statement on Page 5, the rent of $450 a month for a two - bedroom apartment, Mr. McBride explained the statement represents the Third Quarter of 1992 as listed in the Quarterly Economic Report. Mr. McBride explained the Economic Report includes areawide statistics; the Yakima Housing Authority only deals with statistics in its jurisdiction. Mr. Arnett referred to Exhibit No. 5, the Accra -Cost of Living Index - 1st Quarter 1992, which shows the cost of housing being 4% less in Yakima as it is nationwide. Mayor Berndt indicated that median income is less here than it is nationwide. She asked Mr. Arnett if he is saying that affordable housing is not needed or that it is plentiful. Mr. Arnett commented that the people he deals with are concerned with some of the numbers in the CHAS document being used to either entice or attract money into an area to provide housing in this area. Mr. McBride explained that the majority of the data presented in this document is based upon Census Tract data. All other data placed in this document has been referenced accordingly. Council Member Barnett commented that the purpose of this meeting is to gather public comment, which will be inserted into the document. Mr. Arnett commented that there is a difference of opinion of what the average rents are and referred to his handout about rental rate history as seen by Rental Service of Yakima. He pointed out that these are the rental prices for Yakima and requested these figures be included in the CHAS document. Mr. Arnett referred to Page 92, Affordable Housing, read the definition, and asked if the 30 percent figure was totally derived by HUD. Mr. McBride specified that the definition used here for affordable housing is the HUD - definition nationwide. Mr. Arnett referred to Exhibit No. 7, First 5 SEPTEMBER: 28, 1993 4 3 5 Time Homebuyers Program, and commented that the formula does not include utility costs, insurance, or other items. According to HUD, a person can only afford 30% of their income including utilities for rent, but if buying a home, a person can afford 33%, not including utilities. Another aspect of the report that Mr. Arnett disagrees with include mixing identifying terms regarding criterion for affordable housing, problem housing, and overcrowding. He referred to Page 9, where it states there is a need to supply housing for people with incomes under $35,000 without mentioning who is to supply this housing. Ms. Kracht commented that this • document is not going to dictate who is going to provide the housing; it is just stating it needs to be done, whether it be in partnership, singly, with a non - profit, or with an agency. Mr. Arnett referred to Page 70, Priority #1, Yakima Housing Authority, Beneficiaries, and commented that the figure of 290 assisted units was incorrect, and there were inconsistent figures on Pages 37 and 24 also. Rolland Lewis, Secretary /Manager, Yakima Housing Authority, explained the figures his office supplied to the Office of Housing and Neighborhood Conservation were incorrect and a memorandum to that effect would be sent. Mr. Arnett asked if this document addresses how the private sector has helped supply any of the housing needs. Ms. Kracht explained there are a lot of reasons things haven't happened in the housing market. This document doesn't say who is going to do what and the negativism‘ comes from the fact that the City definitely needs housing. It is hard to accept the fact that there is a problem in our community. The private market, if it could, -would step forward, but there are a lot of barriers to that. Mr. Arnett further commented about the private sector having to compete with other groups that receive low income home loans and benefits. He further explained that some of the rent increases this document mentions are due to pass throughs such as when citizens vote for better schools and better items around the community and government initiated bonds and programs. Mr. Arnett also mentioned that the 2010 statement should be included in the CHAS document. Mr. McBride explained the Vision Statement was part of the initial submission and it is already on file with HUD. In order to answer Mr. Arnett's question as to the next step in this process, Ms. Kracht explained the comments received during this public hearing will be included in the document and submitted to HUD. City Manager Zais explained that Council can entertain the comments today, close the Public Hearing, adopt the resolution, and indicate direction that the changes, amendments, or corrections should be done and submitted in accordance with the deadline. The other option that is also available to Council is to continue the Public hearing to a later time, direct that those same changes and amendments come back and allow for one last review prior to its submission to HUD at the deadline at the end of October. 6 436 SEPTEMBER 28, 1993 Lee Arnett, President of the Yakima Valley Rental Association, stated he was never contacted for any input into this document. There are several references on Page viii, paragraphs three and four; Page ix, paragraph one, states that all providers of housing in the area were contacted for input on this. Page 47, paragraph two, also I/ indicates that same thing. We have several concerns. One of them is the accuracy of the report. Along with accuracy, there are errors or lack of consistency in statistics. He referred to the chart in Section I, page 2. At the bottom it shows the difference between population increase and housing increase in the Yakima area. For Yakima County, the population increase was 2.69, the housing increase 2.77. For the City of Yakima, the population increase was 7.04 and the housing increase was 13.30. From these figures, it seems like housing is being addressed and there are new units coming in. Mr. Arnett referred to Page 5, paragraph 1, it gives the rental price of a two - bedroom apartment at $450 a month. It does not indicate whether this includes utilities, such as water, sewer, trash,. irrigation, or lawn service. Council Member Beauchamp commented that most of the new construction is not affordable housing units. The average low income family, and there are many people in need of housing, cannot afford the amount of rent on these new units. Certainly there is some construction going on, and that's good because maybe we need that overall, but we also need that other layer. Council Member Beauchamp explained this document addresses the problem of overcrowding. Mayor Berndt commented that perhaps government subsidized housing is not wanted by the Yakima Valley Rental Association and questioned whether the CHAS document is really their issue of concern. Mr. Arnett explained their concern includes the type of government support. He requested Council to turn to Page 36, paragraph 4, under Housing Problems, and quoted the following: "City -wide, 48a of all renter households have housing problems." Mr. Arnett asked what image does that put in your mind. Then it goes on to say "Housing problems may include a lack of complete kitchen or bathroom facilities, or structural deterioration of the dwelling unit which may or may not be suitable for rehabilitation." He referred to Page 7, paragraph 1, and stated this paragraph defines defective housing problems. At this point, Mr. Arnett described a scenario of what an incomplete bathroom might include and also described an overcrowded housing situation that could happen. There is nothing wrong with the houses in those scenarios, but this report would have you believe 48% of these houses are falling down. Also it says, if people are paying more than 30% of their income including utilities for housing, there is a housing problem. That is not a problem of the house or the structure. This is what we feel is misleading. Mr. Arnett referred to Page 15, "These special population groups have housing needs which 'fair market' housing has failed to adequately address." He emphasized the words "fair market" and 7 437 SEPTEMBER ..28, 1993 . described them as a label and ,the image the label creates. Mr. Arnett referred to structure condition statistics and described them as inconsistent. He referred to Page 17 that says 8.5% are unsuitable for rehabilitation. Page 36 says that less than 3% are unsuitable for repairs and rehabilitation. Page 48 says 18% of City housing is structurally substandard. Page 17 says 83% are in good condition; 8.5% need rehabilitation. Another area Mr. Arnett expressed concern about is on Page 48. It indicates there is a strong need for two and three bedroom houses for larger families. The definition in the back of the CHAS for a large family is five or more and questioned whether five people could live in a two bedroom house. The emphasis should be on four and five bedroom houses instead of two and three bedroom houses. Mr. Arnett expressed concern about the effects that this report would have on the housing market here, now and in the future. The City is competing with the private sector. At this point, there was a considerable amount of discussion of a newspaper article about a possible future Housing Authority project. Mayor Berndt explained the project is not City administered, and Council Member Sims explained that the only thing this Council has to do with the Housing Authority is to appoint the Board Members. Mr. Arnett further commented that according to this report, there are 26,044 housing units in Yakima. This is on Page 15. Our figures indicate that there is a 3% vacancy factor or more currently, which means there is 781 vacant units at any time. We have tried to present ways that the private sector could help. One of those would be a guarantee of rent payment for publicly assisted people. Mr. Arnett explained there has been a bill before the Legislature that would guarantee payment of landlords for the rent, which would be beneficial to low income people too. Mr. Arnett expressed concern that this report will bring about City licensing and inspection policies such as those in other communities. Mr. Arnett commented that the CHAS document states 48% of the houses are in bad shape, and he disagreed with that figure. That will be the City's justification that more inspections and more licensing is needed. Mr. Arnett explained that the cost of school buildings, utility rate increases, other things of this sort, building maintenance and improvements are passed along in higher rent costs. He encouraged that this report be redone and that it not be used as a basis for housing actions in Yakima. Council Member Beauchamp commented that Mr. Arnett, along with all citizens, have every right to come and challenge the accuracy of statistics, and if they are not correct, they should be corrected. The CHAS document is aimed at providing housing to try to fill some gaps which exist in this community. He described how the private sector is involved in Section 8 Housing. We are using all the resources we have, but we need more. We need to work together. Mr. Arnett agreed that the City and the private sector should work together, 8 438 SEPTEMBER 28, 1993 but the private sector was not asked for input or given information. He explained that he has attended Housing Coalition meetings and Rebound meetings and wants the opportunity to input into the process. Council Member Beauchamp referred to a recent newspaper article that depicted existing housing problems in the community. Mr. Arnett explained they strongly disagree with the maintenance condition statements in the CHAS document. Many of the problems described in it are housing problems, not landlord problems. Mayor Berndt reassured Mr. Arnett that it is no way the intent of this document to do anything to harm the private sector. Particularly, it is not the intent of this document to do anything as it relates to increasing inspection fees .or regulations. Mayor Berndt explained that if that ever comes up it will be because we get a request from the community asking us to do that because of conditions out there. Mr. Arnett explained that he attended meetings of the Interfaith Housing Foundation, but the Yakima Valley Rental Association is not a member. Ms. Kracht commented that her division has made a sincere effort to involve the public sector. She distributed the CHAS to everyone at the meeting. She further commented that there have been monthly meetings concerning housing gaps in the community of which she and Mr. Arnett have been a strong part of. Notices were distributed in the . community that the CHAS was available for review. Council Member Sims asked why the Yakima Valley Rental Association was not listed in the CHAS along with the other state and local agencies. Mayor Berndt explained that the Yakima Housing Foundation is a consortium of all private and public housing providers; the Yakima Valley Rental Association is a part of that. Ms. Kracht explained that the Housing Foundation is listed and the CHAS includes information received from its membership. Omer Gress stated he owned some well maintained rental units in Yakima. He thought the City was going into the housing rental business and expressed concern that the government was coming in and taking over the private sector's business by siphoning off the good renters and leaving the not -so- desirable ones. Mayor Berndt explained that the CHAS document is a statement of housing needs. We do have some programs that help first -time homebuyers, some rehabilitation programs, and those kinds of things, but we are not in the business of buying and renting houses or apartments of any sort. She further commented that somehow there has been a major misunderstanding. Lee Clark, 817 Conestoga Blvd., submitted Exhibit 10. He explained he had a .basic problem with the CHAS document because what is written• in it appears to describe the need for large scale public housing, which would completely kill - the private sector. The CHAS does not differentiate or state that this is a document and a method to provide low 9 439 SEPTEMBER 28, 1993 . income support. It's making :a very strong case by some inaccuracies in statistics to show that there is not new housing being developed. There is new housing being developed. Although it may not all fit the needs for low - income people or for people with special needs. Those things need to be looked at, but there are no assurances whatsoever that these public funds are going to be used for that purpose. The CHAS document provides no assurances to private industry such as those given to the other government agencies and organizations regarding giving consideration and protection from duplication or direct competition. Mr. Clark described this document as an "enabler" justifying the great need for housing, including upscale type housing for upper or middle class families, and this is not where public housing should be. Mr. Clark .further commented that there should be some differentiation made in the report to clearly identify the objectives. Mr. Clark also stated that the average two bedroom unit is not renting for $573 in Yakima. With the swimming pools and tennis courts, you're into the $573 per unit for two bedroom apartments. Mr. Clark described the growth in multi- family dwellings during the last year as inspiring. There hasn't been growth in the past, because there wasn't a profit to be made. The difference between profitability and nonprofitability is only a few percentage points in vacancies. Jim Carpenter, who works with intercity kids through the First Presbyterian Church and who lives in Granger, described conditions as appalling and referred to displaced, homeless families, particularly large families that need four or five bedrooms. He described the long waiting lists for housing and said there is a need for at least 2,000 affordable units in the City and perhaps 5,000 countywide. A problem that the private sector is not addressing. Mr. Carpenter also spoke of tenants who are afraid to complain about conditions due to the fear of eviction. Mayor Berndt commented that, although the City does not own or rent housing, there is an Office of Housing and if there are concerns, they should contact the Community Development division to solve some of those kinds of problems. Lynn Kittleson, 305 North 9th Street, is the Chairperson of the Community Development Advisory Committee, which is made up of 11 community members. Five members are private citizens and represent neighborhoods, the Northeast, the Southeast, the. Downtown, the Northwest, and the Southwest. There is also representation from the disabled community and the senior citizen community. It is hard to find members to fill vacancies, and they do need community people to serve on the board. She explained the meetings are the 2nd Thursday of every month in City Council Chambers at 7:00 p.m. She explained the Committee reviewed the CHAS document at the August meeting and approved it. People who have concerns should contact the City, find out who their 10 440 SEPTEMBER 28, 1993 section representative is and make contact with them. On the northeast side of town there is concern about multiple family housing impacting schools and neighborhoods. Ms. Kittleson commended Ms. Kracht on taking a limited number of federal funds and leveraging them into programs that are now reclaiming many of the blocks in the Northeast neighborhood by putting families back into their own homeowner houses, which stabilizes a neighborhood greatly. She described a situation where a slum landlord, who has at least twelve kids, innumerable adults, maybe as many as 19, living in a three- apartment facility. There is no grass, and it is run down. The basement apartment is boarded up in the front, and people are living in it. That is the kind of situation that exists in the northeast section of town, and every representative on the Community Development Advisory Committee could say the same thing. Mayor Berndt requested a list of who is involved in the Housing Foundation to know who was involved in this process. Don Hinman, a landlord since 1975, submitted Exhibit No. 11. He described the CHAS report as an outdated document with an adversarial tone requiring some extensive rewriting. He also described some of the changes the housing rental industry has experienced including adapting to difficult economic times, increasing its participation in social issues, and the necessity of having a positive cash flow in order to be profitable and stay in business. Mr. Hinman suggested that a focused policy be added to the document outlining specific steps in a process. Jim Adamski, Executive Director of the Yakima Housing Authority, explained this strategy was developed with statistics taken from a certain point in time. He spoke in support of the CHAS document and complimented the staff for doing a good job. Mr. Adamski confirmed the fact that there are well over 2,000 families on waiting lists for some kind of housing assistance. He described the fact that both the public and private sectors work together and stated that private developers solicit the Housing Authority for financing to build. The proposed project on 40th Avenue is an example of private and public sector working together. He explained how the private sector along with the community benefit from millions of dollars worth of public housing programs which stimulate and strengthen the local economy. He did not want the impression to be taken that the CHAS document represents the private sector versus the public sector. Mr. Adamski further commented that many of the people who spoke here today participate in the Section 8 program. The private sector, developers, construction folks are coming to Yakima Housing Authority and saying there is a need, a profit can be made doing this and then asking for financing. 11 441 SEPTEMBER 28, 1993 Donnie Powell, Vice President:of the Yakima Valley Rental Association, explained that he read the report and it is very difficult to read and follow. He referred to several inaccuracies and inconsistencies in the report, which many have been reported already, and specifically commented on four areas. (1) The rental availability today. In order to show the availability of rental units and to show how much construction there has been in the last few months, he showed a video of housing units in the community currently under construction and soon becoming available. Mr. Powell estimated the rents on these units to be approximately $500 to $750 a month with at least 300 rental units under construction currently in the area. He commented that the people who will rent these will probably come from a lower renting price range and when they rent these new ones, it will make the lower price ranged rental unit available. Mr. Powell's impression is that the CHAS document was prepared to get funding for housing. (2) The definition of a single family unit. Mr. Powell referred to Page 16, Paragraph 4 of the CHAS document, and stated that "68% are single family units, 7% are duplexes, 25% are multifamily units." He questioned the wording because it is confusing. The requirements for the renter and the landlord are different for a single family unit and a multi- family unit. A definition is needed for a single family unit and suggested using the same definition as is contained in RCW 59.1a.030(7) in the Residential Landlord Tenant Act, .(3) The definition of overcrowding. Mr. Powell referred to Page 36 of the CHAS where it indicates that overcrowding occurs with more than one person per room. He disagreed with the definition of overcrowding. He shared a personal experience regarding the large number of people in his family and how it relates to this situation and described the positive aspects of the living arrangements of a large family household. (4) The definition of housing problems. Mr. Power explained that he disagreed with the definition of housing problems particularly items 2 and 3 of the definition on Page 95 of the document. Referring to Page 36, Paragraphs 4 through 6 of the CHAS, Mr. Powell stated the statistics in this section and said, "48% of all rental households have housing problems, and with the low income, 95% have housing problems, and all Hispanics, low income have housing problems." He commented that when there is overcrowding situations, it has nothing to do with the structure and the condition of that house. This is a characteristic of family and individuals. Mr. Powell also disagreed with the cost burden in excess of 30% of income criteria as part of the housing problem definition it is a characteristic of finances, not a problem with the structure. Beth Wasson, Executive Director of Client Treatment Services at Triumph Treatment Center commented that the CHAS report points out the areas where there are problems and where the 12 442 SEPTEMBER 28, 1993 community's needs are not being met. She described over crowding situations in the transition housing they offer, particularly for single parents with large families on a very limited income ($450 a month or less) and whose only available option is to rent a less than adequate one- bedroom apartment because they cannot afford to rent anything else. Most people wouldn't want to rent to this family. The CHAS will make it available for agencies or public /private kinds of alliances to create affordable housing. Dan Tilley, 313 North 31st, spoke in favor of the CHAS document. Anybody that has tried to build anything, bring a business in, develop anything, find housing for their employees, their friends, children, or anybody will discover that this community has a severe housing shortage. The number one reason that industries do not come to Yakima is there is no affordable housing. Even though there is more housing now than there was, the private sector is not meeting the needs and cannot do it on its own. Mr. Tilley encouraged more development of rental houses because, . generally, a single person with children cannot afford to pay for the costs of a new three bedroom home even with an average income in Yakima. Although that would create more competition, it would also help keep the cost of housing down and reduce the number of substandard housing. As far as overcrowding, Mr. Tilley described a situation where 85 people live in five two - bedroom houses that are dilapidated, with entire families living in one bedroom. Whatever this document can do to aid and assist us to improve the critical housing shortage, he is for it. Phoebe Nelson, Director of the Yakima County Coalition for the Homeless and also a member of the Yakima Valley Rental Association, expressed appreciation for the many landlords who call when they have vacancies and a homeless family is placed in permanent housing. She described the responsiveness of the City to the private landlords. She indicated that the vacancy statistics in the CHAS seem to match the information in the Yakima Valley Rental Association newsletter. The most recent one was in July which had the report through the Second Quarter of 1993 and seems consistent with what the CHAS is quoting. It shows the Second Quarter of 1993, a vacancy rate of 2.05 in all rentals in Yakima that the Rental Association is involved in, the vacancy rate of 1.85 for the First Quarter of 1993 and both of those are lower vacancy factors than the First Quarter of 1992 and the Second Quarter of 1992. It seems there is a trend toward tighter rentals at least for the First Half of this year, the time periods that the CHAS document was prepared for. Referring to the video shown at this hearing about the development of rental housing, Ms. Nelson indicated that her staff will be inquiring about vacancies because they have a couple of hundred families that need housing, and it is nice to know that some exist. 13 443 SEPTEMBER 28, 1993 Brien Thane, Executive Director of Rural and Farmworker Housing for all private nonprofits based in Yakima, explained that his agency develops housing statewide, primarily for families who are employed in the agricultural economy. Mr. Thane further commented that the extensive need for additional, affordable housing in Yakima is pretty well documented, if nothing else, by the extensive waiting lists that both public and private landlords are experiencing. Although the exact statistics and standards that are included in today's CHAS presentation have been challenged, it's important to remember that the Federal Department of Housing and Urban Development requires they both set the standards and require that the Comprehensive Affordability Strategy provide information based on their standards. It's HUD that establishes the level of affordability for rental housing at 30 percent of income. It's HUD and the Census Bureau who require that information be provided on overcrowding defined as more than one person per household. They also provide standards as to what can be considered substandard housing. What staff and other parties who have contributed to this document have done is what is required of them and tried to provide the information based on those standards as at least a base. On the issue of competition between publicly funded entities and the private landlords, as others have noted, Mr. Thane explained that it is not a situation of competition, but more that it addresses different segments of the population and different needs. For example, the housing that Mr. Thane's organization develops is 50 to 70 percent large bedroom units -- three, four, five bedroom units. They are aimed at a target population that is earning around $6,000 to $10,000 a year. At this income level, these families cannot afford a $300 to $350 apartment. If they can find one, and more importantly, they need a three, four or five bedroom apartment, which is certainly not renting for $300 to $350 a month. His organization is addressing needs that are not being addressed elsewhere, and that is not because the private housing industry is failing. The whole endeavor of developing and operating housing is not a simple one, and it certainly isn't inexpensive. Both private and public funded entities are facing a variety of challenges, this document is simply a basis to help identify the needs and begin to develop strategies to address various parts of that need. Mr. Thane encouraged and supported the adoption of the CHAS so that they can continue with the business of trying to adequately house the members of this community. There being no one else present to speak to the issue, Mayor Berndt closed the public hearing and asked for Council direction. Council Member Brado explained that in many instances the only source of income for landlords is from rental property. 14 444 SEPTEMBER 28, 1993 Landlords object to the CHAS because they believe the document paves the way for the availability of public funds with 6 percent interest and no taxes to be used for luxury apartment projects. Nobody said they didn't want to help the needy; they don't want to help the greedy. Mayor Berndt commented that she got the impression that some of the concerns expressed today are based on fear that the City has something to do with the aforementioned project. The project that everyone referenced is a private development that was looking for tax advantages and tax subsidies to build subsidized housing. It is not the government doing it; it isn't the Housing Authority doing it; it is a private developer, and that is not the purpose of this report. Council Member Beauchamp commented that a portion of those units will be middle to upper income units, not just low income units. The CHAS is a strategy to develop housing in this community that is affordable for the citizens. There are some citizens who do not need our assistance, but there are citizens who do. The purpose of this document is to develop a strategy where housing can be made affordable. Council Member Buchanan commented that the problem is the definition of affordable. We had a developer in here not too long ago who was talking about $535.for rent, and yes that was affordable housing for some people. Council Member Brado commented that the same market a few years ago didn't have rentals because people couldn't afford to build and economically rent the units out, and now they finally can. Mayor Berndt commented that we have to submit a document in order to get federal funding of any sort. The City is running, what she considers to be and which is considered to be around the country, an exemplary housing program. We do not buy and rent houses, but we do help landlords rehabilitate, and we do help first time homeowners. Council Member Barnett commented that this is a public hearing where people came to express their opinions that are to be included in the appendix of the document. All we're doing is holding a public hearing to get public comment. There are differences of opinion and always will be. Ms. Kracht explained she felt comfortable with this document. A lot of the things that were said today were taken out of context. Numbers were thrown back and forth that didn't compare to each other. She stated she would be glad to reverify all of the numbers prior to the submission to HUD to make sure everything is accurate. Council Member Barnett commented that the resolution could be passed with the understanding that these areas that are allegedly different on figures could be verified according to what is required to report and because HUD can evaluate any discrepancies if they so desire from the public testimony that is being given in this document and included in the appendix. I don't see the reason to hold up the entire document because there are differences in testimony and opinions, and that is what the appendix part of public comment is for. Resolution No. R- 93 -104 having been read by title, it was MOVED BY SEMON, 15 445 SEPTEMBER 28, 1993 SECONDED BY BEAUCHAMP, TO ADOPT THE RESOLUTION. The motion carried by 6 - 1 roll call vote, Brado voting nay. RESOLUTION NO. R - 93 - 104, A RESOLUTION adopting the City of Yakima Comprehensive Housing Affordability Strategy (CHAS) FY 1994 -1998. Council recessed from 4:10 to 4:15 10. AUDIENCE PARTICIPATION Mayor Berndt proclaimed the week of October 3 -9, 1993, as Fire Prevention Week. She urged citizens to participate in :Eire prevention activities at home, work, and school. Martin Medina, President of the Hispanic Barrios Association of Yakima, Manuel Rodriguez and Tony Sandoval, President of Washington State Council of La Raza, submitted a request for information dated September 24, 1993, from Asociacion De Barrios Hispanos De Yakima regarding the operation of the Southeast Community Center. Mr. Sandoval read a letter dated September 27, 1993, from Washington State Council of La Raza speaking in support of this community based organization, along with requesting assistance from the City of Yakima to locate office space for the Association. The Southeast Center has asked the Association to vacate the Center by the end of the month. 11. CONSIDERATION OF RESOLUTION AUTHORIZING APPLICATION TO FCC FOR CABLE RATES CERTIFICATION Wendy Warren, Cable Communications Manager, referred to the report outlining which rates the city may regulate, when cable rates can be regulated, how they may be regulated, and alternatives to local rate regulations. Council Member Barnett suggested that further action be deferred until Northwest Cable has completed their survey and finished compiling subscriber statistics. Gary Bailey, Manager of TCI Cable, requested this issue be either rejected or at least tabled because he would like an opportunity to present information representing his point of view. Mr. Bailey disagreed with the FCC's definition of what is called I/ effective competition. He explained there is effective competition from Northwest Cable, also a multichannel video programming distributor, but who is a "wireless" or microwave -based system that has doubled their subscriber rate in less than a year and bring a viable alternative to cable television. Another alternative is direct broadcast satellite TV that will include approximately 50 channels and will begin in January 1994. After further discussion among Council Members, Ms. Warren, and Mr. Bailey concerning competition in this industry, the basic cable service rate 16 446 SEPTEMBER 28, 1993 regulation process, whether the city will apply for FCC certification to regulate the cable system, it was MOVED BY BEAUCHAMP, SECONDED BY BARNETT, TO DEFER ACTION UNTIL OCTOBER 12, 1993, TO PROVIDE OPPORTUNITY FOR MORE. DISCUSSION. The motion carried by unanimous voice vote. 12. CONSIDERATION OF RESOLUTION AUTHORIZING INTERFUND LOAN FOR CHESTNUT MANOR Council Member Brado, who requested this item be removed from the Consent Agenda, commented that his question was answered during the recess. Resolution No. R -93 -105, having been read by title, it was MOVED BY BUCHANAN, SECONDED BY SIMS, TO ADOPT THE RESOLUTION. The motion carried by unanimous roll call vote. RESOLUTION NO. R - 93 - 105, A RESOLUTION authorizing an interfund loan from 123 - Economic Development Fund to the 124 - Community Development Fund, and providing for repayment. *13. SET DATE OF PUBLIC HEARING FOR OCTOBER 26, 1993 ON THE FINAL ASSESSMENT ROLL FOR NORTH 21ST AVENUE LID NO. 1050 October 26, 1993 was set as the date of public hearing on the Final Assessment Roll for North 21st Avenue LID No. 1050. 14. RECONSIDERATION OF ORDINANCE VACATING A PORTION OF "A" STREET REQUESTED BY JEM DEVELOPMENT (NEEDS MOTION TO REMOVE FROM TABLE) It was MOVED BY BRADO, SECONDED BY BEAUCHAMP, TO REMOVE THE ITEM FROM THE TABLE. The motion carried by unanimous voice vote. Don Skone, Planning Manager, requested this item be referred to staff for a thorough review and report back to Council. Council Member Barnett requested that the report include how the site plan might change. Mayor Berndt requested that the amount of costs be reconciled due to the extreme difference between what was originally told and current figures. Council Member Barnett requested the Traffic Analysis include origin and destination, if that is possible, to determine whether there is a public need for the street that the city has been requested to vacate. Al Royal, 402 East Yakima Avenue, representing JEM Development, asked that this issue be referred back to staff since there are questions and information to be updated. He explained the original request has not changed and agreed that the amount of costs need to be reconciled. In addition, the appraisal needs to be updated. City Manager Zais suggested any questions Council might have be submitted during the staff review. Council Member Barnett 17 SEPTEMBER 28, 1993 stated that many of those previous questions have been well analyzed or responded to. He supported the right of citizens to express their concerns regarding this street vacation request. I/ Stan Pratt, representing property owners of the corner of Naches and B Street, requested the traffic situation be evaluated with particular attention to origin, destination, and volume because it may impact other streets in the area. The circular flow of traffic around the downtown area should be preserved. If "A" Street is eliminated as a through street, this traffic flow will be disrupted and access will be reduced for not only business people and clients, but also for emergency and other service vehicles. He submitted a letter to Council expressing his viewpoint. The question was called for a vote on the motion. The motion carried by unanimous voice vote. *15. CONSIDERATION OF ORDINANCE AMENDING THE DUTIES OF THE HEARING EXAMINER TO INCLUDE SHORELINE MANAGEMENT ACT PERMIT ORDINANCE NO. 93 - 91, AN ORDINANCE relating to expanded ') duties of the City Hearing Examiner; establishing authority to review Shoreline Management Act applications; and amending Section 1.43.080 of the City of Yakima Municipal Code. *16. CONSIDERATION OF ORDINANCE AMENDING THE MUNICIPAL CODE TO WAIVE FIREWORKS DISPLAY PERMIT FEES FOR STUDENT ORGANIZATIONS ORDINANCE NO. 93 - 92, AN ORDINANCE relating to permits for public display of fireworks; providing for the waiver of the fifty dollar permit fee for student organizations making application for public display of fireworks; and amending Section 10.15.040 of the City of Yakima Municipal Code. *17. SECOND READING OF ORDINANCE AMENDING THE 1993 BUDGET AND APPROPRIATING FUNDS FOR PARKS SENIOR TOUR PROGRAMS AND UNANTICIPATED RETIREMENT COSTS ORDINANCE NO. 93 -93, AN ORDINANCE amending the 1993 budget for the City of Yakima; and making an appropriation 1/ of $79,730 in the Parks & Recreation Fund for expenditure during 1993 for various Parks and Recreation Programs. 18 448 SEPTEMBER 28, 1993 *18. FIRST READING OF ORDINANCE AMENDING THE 1993 BUDGET AND APPROPRIATING FUNDS INTO THE SEWER CONSTRUCTION FUND (No formal action required this meeting) An Ordinance amending the 1993 budget and appropriating funds into the Wastewater Facility Project Fund for various Wastewater Facility construction projects, having been read by title only, was laid on the table for two. weeks, until October 12, 1993. I/ 19. OTHER BUSINESS After discussion among Council members and staff regarding the policy as stated in Resolution No. R -93 -17 with regard to annexations in the West Valley, it was MOVED BY BEAUCHAMP, SECONDED BY BRADO, TO REAFFIRM OUR DECISION ON THE MATTER. The motion carried by unanimous voice vote. Referring to Agenda Item No. 14, City Clerk Roberts explained there was no motion made to direct that item to staff. It was MOVED BY BEAUCHAMP, SECONDED BY BUCHANAN, TO DIRECT AGENDA ITEM NO. 14 TO STAFF. The motion carried by unanimous voice vote. Information Items: Items of information supplied to Council were: Memorandum from City Engineer regarding North First Avenue Status Report. 9/23/93; News Release from Transit Division regarding Yakima Transit Shuttlebus Service to the Fair; Monthly Report of the Chief of Police for August 1993; Assignments Pending in the Office of Environmental Planning as of September 28, 1993; Agenda for the September 22, 1993 Yakima District Board of Health meeting and minutes of its August 26, 1993 meeting; Notice that Department of Ecology is Relocating; and ADA Update from Association of Washington Cities; Issue #4, September 14, 1993. 20. EXECUTIVE SESSION REGARDING PROSPECTIVE LITIGATION It was MOVED BY BARNETT, SECONDED BY SIMS, TO MOVE INTO EXECUTIVE SESSION FOR THE PURPOSE OF DISCUSSING PROSPECTIVE LITIGATION AND COLLECTIVE BARGAINING, WITH IMMEDIATE ADJOURNMENT THEREAFTER. The motion carried by unanimous voice vote. 19