San Leandro City Council Meeting Summary (December 15, 7:00–10:50 PM)
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December 15th, it is 7 p.m.
I will lead us in the Pledge of Allegiance.
Please stand if you're able to, and please join.
I pledge to the five of the United States of America
and to the recovery of the religious states,
one nation under God, indivisible,
liberty and justice for all.
Madam Clerk, would you please take roll?
Council Member Viveros Walton.
Present.
Council Member Azevedo is absent.
Councilmember Aguilar.
Present.
Councilmember Simon.
Present.
Vice Mayor Bowen.
Present.
Councilmember Bolt.
Here.
And Mayor Gonzalez.
Present.
The City of San Orlando conducts orderly meetings to fulfill its mandate.
Discriminatory statements or conduct that would potentially violate the Federal Civil Rights Act of 1964
and or the California for Employment and Housing Act, California Pre-Ellant Code Sections 403 or 415,
are per se disruptive to a meeting and will not be tolerated.
Please see the City Council Handbook and City Council Meeting Rules of Decorum
for more information.
Madam Clerk, your announcement, please.
If you would like to make a public comment during the meeting,
you can do so in person or via Zoom.
If you are present at the meeting, please complete a speaker card
and submit it to the City Clerk before the item is presented.
If you wish to participate in public comment via Zoom,
you can use the raise your hand tool when the item is called.
During the public comment session, speakers will be invited to speak
and will have a set time to share their comments.
A countdown timer will appear for their convenience,
and when the time is up, the microphone will be muted.
All hands raised outside of public comment will be lowered to avoid confusion.
Once public comment is opened, hands may be raised to speak.
There will be a 30-minute window for public comments,
which will take place under item 7, public comments, as per the published agenda.
After this time is up, the council will proceed with the rest of the meeting's agenda.
If you have not had the opportunity to speak during the initial 30-minute period,
there will be another chance to do so after item 12, council reports.
So on item number three, is there a report on closed session?
Thank you, Mayor.
No reportable action was taken in closed session, but direction was provided to staff.
So there are no recognitions under item four today, so we will move to our consent calendar.
Would any councilman like to pull an item from consent?
Seeing none, we will move to public comment.
Did you want to pull something?
No.
So we're going to move to public comment on this item.
Do we have any comment on item five?
Thank you, Mayor.
we have one speaker card submitted from here in the room
and we have one hand raised on Zoom.
Please proceed in the room.
So we will open public comment in person in the room.
Ginny Madsen.
So my name's Ginny Madsen
and having attended all of the Rent Review Board meetings
for like the last 10 years,
I need to tell you guys something that you won't hear
unless you listen to the recording,
because at the end of it, Tom Silva actually said out loud,
he does not believe that the Rent Review Board
serves any purpose any longer,
because 7%, which is what you have to have to get a hearing,
is less than the state's rent cap, which is 5% plus the CPI.
So he doesn't think that he has any purpose, and he actually stated this.
Of course, it's not in the minutes, and maybe he did it just for my benefit
because I've been staring him in the face for all these years.
I didn't ask him to do it.
I never would have.
I never made his life harder.
but he said it and you guys need to know that that is not a path forward and i'm not just
telling you but i'm telling the people behind me in the audience so thank you for letting me say that
thank you mayor that is our only comment from in the room okay so we will close public comment
here in the room as folks need to turn in their card before the item we will open public comment
online. The first speaker online is Douglas Spalding. Thank you so much. Courage to Ginny
Madsen for going in person to comment, even though she's in incredible discomfort, I know.
In terms of this consent calendar, I am really happy about item 5F, which earmarks nearly $2.2
million in homelessness grants. This is really the best of what we do as a city. This is an
identified priority addressing homelessness. While other things on the consent calendar, I say,
are not so much a priority. Later in the meeting, we're going to be debating over a million dollars
here or there. And before we ask other essential services to go through financial contortions,
I think we should look to see where there may be some fat. And I'm looking at about $400,000 here.
So first of all, I'm looking at all the money being thrown at the golf course.
There's an incentive management fee payment due to American Golf Corporation.
That's because the agreement provides money to AGC if revenues exceed $750,000.
Seems a little crazy to me.
It's like kind of making money on top of money.
I wonder where all those proceeds go.
And if we need to give them more money, then maybe what we need to do is increase the green fees there.
So that's a big chunk of money.
Then I'm looking at $45,000 for a couple items on the police San Leandro something.
Sounds like we're going to fight a war in Ukraine if what we need are ballistic armored plates and tactical camera balls.
I think these are just toys that our police department doesn't need.
Then I'm looking at 5C, this CSA we have for accounting.
Why don't we just hire somebody with that expertise so we cost less than $175,000?
And then there's a few things maybe we can dip our money from.
I don't know if they're restricted.
Thank you, sir. Your time has elapsed.
The next speaker on Zoom is Randall.
Randall are you there? Yes. Do you hear me now? Yes. Okay great. My understanding that city of St.
Landau has a budget problem. I want to point out that this rent control issue,
retailers reviewing cities to locate their next door. So I'm going to ask you to pause for just
a second and i want to confirm are you speaking on the agenda item consent calendar or are you
speaking on rent control rent control okay that will come up in two items we'll be right back to
you no worries mayor there are no further hands raised we close public comment online on our
consent calendar if there's no discussion i'm going to come to council member aguilar i'm
I'm assuming you'd like to make a motion.
I'd like to move the consent calendar.
Okay, do I have a second?
You can just raise your hand or point out
Council Member Simon.
So I've got a motion from Council Member Aguilar
with a second from Council Member Simon.
Seeing no further discussion, please vote.
All votes are in.
And the motion carries with six yeses.
Council Member Azevedo absent.
Okay, at this point in time for item number six, I do not believe we have any reports,
but I'll look left and right and confirm.
Seeing none, we will proceed to public comment.
This is the time for the public to comment on items that are not on our agenda,
but are within our subject matter jurisdiction.
So how many cards do you have?
Mayor, we've received four cards.
Okay.
And as of right now, how many hands do we have online?
One raised.
Okay.
Let us proceed in person first for public comment on items that are not on our agenda.
The first three speakers are Nawal Rashid, Mason Rashid, and Rob Rich.
Hello, good evening. My name is Noelle Rashid. I am a property owner in Davis West. And I'd
like to address a safety concern we have. November 30th, our home was our property was hit by
a vehicle that caused damage to our gate. The gate hit our vehicle and our vehicle
hit our home. So there was multiple damage involved. This is not the first time this has
happened. It's happened previously. A few years ago, the same incident happened. A girl on her
motorcycle hit our gate. The gate hit our vehicle and there was damage. And there were other
instances as well. So our property is on Cascade and Tudor Road. It's an intersection.
There's obviously a faulty design. When incidents, when the prior incident happened where the
young woman in the motorcycle hit our property and there was property damage consequentially,
we did reach out to traffic engineering to please put up a traffic stop sign to help with the
situation. They came out. They felt there was no need for one. So now we have to incur the cost
because the person who hit us was underinsured. So now we have to eat up the cost on our vehicle,
which is now totally considered totaled. It was a brand new Subaru 2024. Our iron gate,
we have to eat up the cost on that. And now also we have structural damage on our home.
and we have to eat up that cost.
We're actually really concerned
about even notifying our home insurance
with the issue of home insurance leaving California.
So we're in a pickle right now
and we're looking for help.
Thank you.
Your time has elapsed.
And our next speaker.
So just to be clear,
we don't go back and forth,
but I will inform you that Sheila Marquisis
from Public Works.
We'll be connecting with you.
You can meet her in the back corner there.
Thank you.
The next speaker is Mason Rashad,
followed by Rob Rich,
then Stephen Ha, or Stephen H.
Good evening, City Council, City Manager.
Yeah, I'm Mason Rashad.
I live at 705 Tudor Road.
I just sustained $60,000 in damage to my car, my house, my gate.
This has got to stop.
This is the fourth accident in less than two and a half years, the fourth one.
So my wife was right.
The motorcycle hit us the last time.
Our rental car was hit.
Her Subaru, 1998 Subaru was totaled.
We have two totaled Subarus, right?
Our house is damaged. We're out like 60 grand right now. We need some help. I've been sending letters. I've been calling people. I've been sending emails since 2012. Yeah. So, I mean, something's got to be done out there. This is a mess.
and, you know, everyone says, well, it's your neighbors that are hidden.
Not necessarily.
And even if they are and this last guy was our neighbor, you know,
something's wrong with that intersection.
I mean, if a neighbor can hit a car that's parked, right,
drive by it every day and manage to hit it, something's wrong.
So we're asking for traffic mitigation out there.
Something has to be done.
I think it's more than a stop sign.
I think it's redesigning that whole intersection.
Something has to be done.
Something has to be done to call attention to our house, which is, you know, getting T-boned now.
And our cars and our neighbor's cars, too.
I mean, it's not just our cars.
Our neighbor's cars are being hit as well.
Sometimes we call the police.
Sometimes we don't.
I mean, if it's something minor, like last time one of my mirrors was hit, I didn't bother calling the police.
My neighbor's got an older car.
His car was hit.
He didn't bother calling the police.
But something really needs to be done, and I'm looking for some help.
Thank you.
Thank you.
The next speakers are Rob Rich, followed by Stephen H.
Mr. Mayor, Ms. Vice Mayor, council members, city manager.
My name is Rob Rich, and I'm lucky enough to live here in San Leandro.
Yesterday marked the 11th anniversary of Joel Ramirez's unsolved murder.
He should have turned 32 last week.
He was our neighbor, a good kid.
In a case of mistaken identity, he was shot while parking his car in his own driveway.
Last year, this council raised the reward for Joel's unsolved murder, as well as the rewards for the unsolved murders of Marios Robinson, Kwame Nunn, Del Allen Pan, to $150,000.
Thank you.
I know it meant a lot to Joel's mom, Magdalena, his aunt Dalia, his brother Eric, his grandpa in Mexico, all of his family and friends.
There is something more I'm going to ask, and I promise it won't cost much.
Maybe it's already been done and I've missed it.
Let's periodically remind the public that we are offering these rewards.
That might just create the spark that helps to solve one or more of these cold cases.
When you think about it, victims' families are also victims.
They can't forget. They won't give up.
Let's support them by reminding everyone, even the bad guys, that this community doesn't forget.
We don't give up.
And to prove it, we're offering $150,000.
Thank you.
Thank you.
The next speaker is Stephen H.
Mayor, that's our last in-person comment card.
So we will close public comment in person on non-agenda items.
We will open it up online.
The first speaker online is Douglas Spalding.
Well, I don't know about y'all, but I'm having trouble focusing on the specifics of this meeting.
And I just want to give recognition to the general trauma that I believe all of us are experiencing.
stemming from the anti-Semitic attack on Bondi Beach in Sydney, Australia yesterday.
All the kids I'm hearing from at Brown who to this moment are still barricading at the slightest loud noise that suggests gunfire.
Our DA, Ursula Jones Dixon, cancelling the life of Stephen Taylor by virtually pardoning the officer who murdered him, Jason Fletcher.
the deaths of Mayor Cassidy and today the news of Barbara Lubin, the leader of Middle East
Children's Alliance and many million people. So it's hard to tune in and listen to
the dysfunction of the city council. It's really been very hard listening to your meetings.
And I, you know, you struggle to get through meetings and the distrust is so heavy. It's just,
It's like right there.
It's completely palpable.
So, again, I make the request of y'all to embrace a private, internal, restorative process that is different than and probably separate from the, you know, whatever else you're considering.
It's a process that requires facilitation.
And it's not hard to go online and see there are lots of organizations that provide this service.
Circle Up Center dot org, Polack Peace Building, Mediators Beyond Borders, maybe that's international.
I mean, it's just on and on.
Advoz, Institute for Restorative Practices.
Call somebody up and get some help, please.
I beg of you.
I beseech you.
Get some help.
Thanks.
Thank you.
Your time is up.
Mayor, there are no further hands raised online.
Okay, so we will close public comment online.
Move on to our next agenda item, our public hearing.
We don't have any scheduled today, so then we move to our presentation.
Our sole presentation today is proposed rent stabilization budget
and draft residential rent stabilization ordinance presentation.
We've got Community Development Director Tom Liao here to present.
Good evening, Mayor and Council.
So we've come back to you today since October 13th, the last work session.
Tonight's presentation will provide a brief background.
We're gonna kind of invert the order.
We're gonna talk about the proposed program budget for a rent program.
Then we'll get into the key changes from the draft ordinance,
followed up with City Council direction and then ending with next steps.
Just a quick summary, I won't go through the entire background, but
This item, of course, has been going on since 2023, but here's the last year's worth of work.
As you can see, a lot has been invested with the council and the public,
and tonight we're coming to you with a proposed rent registry and rent stabilization budget
and an update on the draft ordinance for rent stabilization.
Council direction from October 13th was very helpful,
providing for a maximum rent increase of 3 to 3.75 percent or lower of 65 percent CPI.
Your guidance included no capital improvements pass-through,
property owners to use the fair return process,
no banking, no exemptions for small rental properties,
and maintaining the exemption for golden duplexes where the owner lives in one of the units.
So again, I'm going to begin first.
And one of the things we started with last in October, too, is to show now that as this potentially proceeds, both rent stabilization and rent registry sort of merged into a program and a budget.
Some kind of background here, as many of you were given guidance from finance as part of the two-year biennial budget, know that we are in challenging times.
The general fund revenues have not kept up with rising expenditures.
We are in deficit and reliant on reserves.
and council provided direction to all departments to come back with a balanced budget for fiscal year 26-27.
And departments, including mine and community development, are preparing for this $15 million mid-cycle budget cut that will be forthcoming in the spring.
So implications for not only a new rent protection program, but any program that require general fund support needs to weigh ongoing deficit issues.
Council needs to evaluate budget implications of these costs, which is part of what we're bringing forward initially here.
And then one of the new concepts that we've been analyzing as a staff is the general fund loan to fund the program until it can become more cost-recoverable over the next three to six years.
So based on the direction and what we showed you all as different options,
I think the direction that you all majority guided us towards was this kind of enhanced rent registry rent stabilization option.
This includes the rent registry ordinance that's been adopted, including a budget that you've approved for it and staffing.
So this six full-time and this total budget amount includes the two full-time rent registry staff that you'd approved as part of the two-year budget,
and also about the $650,000 you've allocated into the program.
We're adding on top of that the potential for the draft rent stabilization ordinance.
This would cover all units, both what we call fully regulated under rent stabilization.
That's the number we generally estimated over 7,000 for you, plus the partially regulated.
Those are the Costa-Hawkins units, so primarily single-family rental housing and condos and townhomes that are rented out.
And so that universe we've estimated as a range, again, is about 9,000 to 10,000 units of fully and partially regulated.
And putting in this range, because these numbers are estimates and we're going to be coming back with you with more refinements,
is a range of a general fund loan of about 1.3 on the optimistic side million to up to maybe a max of 2.2 million that would be repaid.
so this is the program option that we're going to focus on tonight with our analysis we also
wanted to show you all as well as the public that we did consider some other options some that were
also sort of brought up in october one is kind of a middle level called basic enforcement where
it's focused rent registry and rent stabilization that would be a little bit less staff at four
full-time what we would propose there would have been to come back and maybe amend at your
discretion rent registry to pull out maybe some of the partially regulated units particularly
the single family homes and the again the cost of hawking units that really would not be regulated
but really would be time intensive to monitor to the registry there would be just focused on
the rent stabilization units which is estimated about 65 to 75 7600 so that was one middle option
The one other option that was a little bit more,
just given the budget context, was more extreme, we looked at.
But again, the focus was on the more robust one,
was what we call the passive enforcement,
where it would be up to the two employees that you've improved.
It really would involve repealing the rent registry,
which is not, again, a direction you've given.
But that is one option because of the cost of the software,
the intensiveness of the large number of units
that would fall under a rent registry.
If that were an option, that program could be implemented six months earlier, again, mainly because the rent registry would have been repealed.
But going forward, again, we've put front and center here the enhanced enforcement option of both rent registry and the proposed rent stabilization.
And again, that's the focus for tonight.
Just wanted to share some assumptions that went into our modeling of the enhanced rent registry and rent civilization option.
Again, we've talked about a general fund loan, but we'd also, working closely with finance, establish a special revenue fund.
So what that will do is help us track both revenue and expenditure of this program separately, almost like an independent program.
We also made some assumptions, again, and these are subject to change, but we have to start somewhere with our county parcel data of what we consider to be the fully regulated units and then partially regulated.
So you can see there's a range, and we've kind of played around different modeling scenarios there.
We've also, again, this will be subject to change, and we're going to bring forward the final fee study for the program, probably in about a month and a half or two.
But we had this kind of just show you and all the public what the range of the cost per unit would be.
So if we're fully regulated for now, and again, subject to change, it could be $250 to $300 per unit.
this would be sort of a staff intensive program as we've mentioned over the
months or so or the years talking about this and then the partial regulated
which could fall between 125 to 175 dollars per unit a critical piece of
full cost recovery would be enforcement for late penalties and then again we'll
walk you through on the next couple slides what that would entail the more
aggressive the city could be for late penalty fees the quicker you could
recover the loan. We'll recover the loan regardless but depending on the length
of time you're interested in. In addition there's also liens or special
assessments for fully regulated units and that will ensure that this program
can be paid back in a timely way. In terms of budget staff and program
operational cost considerations some factors that we brought up before for
program or salaries, benefits, and indirect service costs, but also services that come with the program.
And the critical services that are very time-intensive involve outreach and education to the public, both landlords and tenants,
legal counseling, tenant-landlord services as well.
And then at the more robust enhanced option, where we're looking at potentially six full-time above the two,
there's a good likelihood that we may be looking to lease some office space for some of that staff,
if not all of them, and also building out some new office space for them as well.
Just wanted to share this table. This again would show you again back to the enforcement level,
depending on, you know, council sort of thoughts about enforcement. You know, the higher the late
penalty enforcement, the quicker you can have the short term, a shorter term payback.
Same with the lien.
If we impose more of a stronger 100% enforcement, quicker payback.
If there's some flexibility given because we know it's a new program for owners and
it's ratcheted down so that the enforcement levels are a little bit lower, that could
go to a longer term of five to six years of the general fund loan being repaid back.
And then in terms of the staff recommendation for what we call a full cost recovery framework,
or enough for the program to be self-sufficient, I think we are, again, looking at this initial
general fund loan that would get us through the first year or two, and that could be repaid
back within three to six years. And then again, that payback period, as I noted on the prior table,
It really falls and depends on the fee level that's set, the compliance rate, and the levels of enforcement.
And then these considerations that we've listed kind of highlight what I've said in the prior two slides.
This is a service and staff drive this program budget.
It's very critical.
This is a time-intensive program to go forward with.
A program needs to get launched, we know.
And so the fee, the reason why we suggested a loan is because the fee revenue will not be there at the get-go.
Compliance and fee will increase over time.
And we've seen that from other cities.
It just takes a while to start, as we've said.
So that three to six-year startup period and settling period is very important.
And the critical piece for a successful program is education enforcement.
But these are staff-intensive costs going forward.
And then again, the collection of late and missed payments will be important to us achieving a full cost recovery, particularly of the general fund loan potentially.
So I'm going to pivot now to the ordinance where you also gave us some explicit directions in October.
Some of those key changes that we've put in now to the current draft was to remove the capital improvement section related to the pass through.
We've heard from you all and both the public to add a definition of landlord, which has been there, and then putting in an ordinance implementation date.
Again, getting back to the staffing up and getting things ready for rent registry, which is due to be in effect in July.
We are proposing the rent stabilization be implemented and have the base rent in effect January 1 of 2027.
The base year then would be in 2026, usually the preceding year.
We understand that to help, there are existing protections that could help the tenants potentially as we ramp into implementation of this program.
That's the state AB 1482 rent cap, which is 5% plus CPI up to a max of 10%.
We still have our rent review board, and we do have also the tenant relocation ordinance as well.
Again, our question for council tonight is to help determine that set percentage between 3 to 3.75%.
You've established a 65% CPI.
One piece of data that we wanted to share with you, though, was we did kind of look at CPI since 2020,
and we looked at the AP 1482 cap, and we projected a 65% CPI.
And we actually even looked further back at CPI, and over 30 years, if you took the 65% number, only once in 30 years would 65% of CPI exceed 3%.
And that was right at the heels in 2022 of COVID.
So that's the one time.
Otherwise, in other words, as you're deliberating between the 3 to 3.75%, it's going to likely be the lower of 65% CPI.
So moving on to council direction, again, requesting a specific number from you all between 3 to 3.75% per year direction in October versus the lower of 65% of CPI.
confirming staff continuing forward with this full cost recovery model for the rent registry plus rent stabilization enhanced enforcement option with an estimated range for a general fund loan, but with plan paid back over three to six years.
And again, I would say this budget continues to be refined.
The first time we showed it to you in very preliminary form was October.
We've had more time to analyze and present more refinements,
but we do plan to come back to you with a finalized fee study for the program in the early part,
probably in, we assume, February, potentially March of early next year.
So just following the calendar and following in line with the work plan under your housing homeless priority,
We would be trying to move to get the first reading of the rent stabilization ordinance to you all on January 12th in the new year.
Just FYI, our housing staff led by Housing Manager Carrie Hussler and her team are working very hard to potentially bring in the rent registry software vendor.
That would probably be coming to you all on January 20th, and that's very close to being determined.
Second reading of the ordinance would be February 2nd.
And as I mentioned, again, we are really delving in estimates right now and having to project different ranges of units and costs.
But we will definitely, I think, have a more definitive presentation for you in February, March, when the fee study is completed that provides the program fees, the program budget appropriations, and more about the general fund loan payback.
And so with that.
so thank you for your presentation we'll begin with questions please clarify questions only
commentary will come later after we hear from the public with our public comment so questions at
this time councilmember bolt yes thank you for the presentation I want to be clear on what I'm
hearing so you need direction from us tonight to build in so that you can give us the information
built out right like like the the decision we make tonight has to inform you so that when you
come back in February I think you said for the total fee of what it's going to cost us
or is that something you can get done before we decide on the three or do you need us to give you
a portion to get it done i think what we heard from you all in october was to go with the
first option of course it will you'll hear public comments and you'll take in that feedback so um so
we know we would come back um with probably more refined budget probably in february march when
we're looking to get a fee study done depending on the direction you give us tonight um that you're
that's the that's how you want us to proceed i think that's why i'm confused because we gave
direction once and now we're asking for direction again for that fee study right so i think we are
proceeding with the program that will be most effective and that will um and then and a fee
study would have been included um for any of those options right but um the one that we presented as
the enhanced option both the rent registry plus potential draft rent civilization um is the one
that we are going to move forward with unless we hear otherwise okay got it unless you hear otherwise
Got it. Okay.
Council member, are you at it, please?
Thank you, Mayor Gonzalez.
Thank you, Tom, for the presentation.
I just wanted to clarify that the staff recommendation for full cost recovery framework is what we were directed staff to conduct.
But you're just here to verify if that's the route we choose.
Right.
And when we pass civilian police oversight, there were grants available.
Is that something with regards to the rent program, rent review and stabilization?
Is that something?
Have you heard of any types of grants available for this type of program?
I haven't seen it in other programs.
And one of the key reasons is when you're dealing with state and federal funding, you have to target a certain income level, particularly lower income.
So take a CDBG.
So that's one reason why in the past we have not applied CDBG to the rent review program, because rent review program really we want to keep it open to all renters.
You know, so it's a challenge when this program would affect all renters.
So and so finding an income, you know, most state federal grants are sort of income based or income need based.
Gotcha. Okay, thank you, Tom.
And can you define what golden duplex means?
Yeah, again, that would be a duplex, a two-unit property where the owner lives in one of the units.
Gotcha.
And rents out the other.
Okay, those are my questions.
Thank you.
Thank you.
Council Member, we go to Swalton, please.
Thank you for your presentation and to the rest of the team for your work.
Thank you very much.
I'm going back to slide eight.
I have a question just regarding on the blue row.
So if I'm hearing correctly, the six FTE, that already includes two FTEs for rent registry, correct?
So it's not six plus the two for rent registry, just to be extra clear.
um so in terms so now kind of let's double click on that and go one more layer
uh so the then that means it would be four ftes for rent for to either enforce and manage the
program or how is the staffing looking like in terms of roles is it like one person doing
enforcement only enforcement or others are doing program implementation and launch how is that
looking like how are you envisioning it i think what we've seen from other cities is um now if
depending on the forwarding of the ordinance and adoption of the rent stabilization um you're
these merged programs um right you're going to see the staff be doing kind of both um you know
trying to probably monitor for the rent registry but also implementing administering the rent
stabilization so there'll be kind of both activities but i think in this more effective
model, enhanced model, you're probably see a little bit more of a hierarchy too. So again,
generally we're still refining it, but you would probably see somebody who's going to be at the
program manager level, and then you might even have an admin support. And then you'd have four
others that are going to be sort of specialists, so to speak, at different skill levels,
come from a management to a senior analyst to like a specialist level. So kind of that sort
of tiering of staffing that we've seen elsewhere.
Thank you. And the slide in terms of the next slide, slide nine, I'm having a little bit of trouble understanding the distinction between partially the eligible units, partially regulated, fully regulated, and its nexus to the per unit fee.
Can you just go through that one more time?
Sure. And I could start. Actually, I might even just have our assistant director, Avalon Schultz, take a response for that.
Hi, good evening, mayor and council members. So what we've seen done in other cities is that typically the costs of a program are not equal for partially regulated units and fully regulated units because the enforcement for rent stabilization tends to require more time and more resources.
And so the fees vary depending on the effort involved in those components of the programs.
And so as you're building your program budget, you want to see what of those costs are attributable to which of the populations of units, and the fee will reflect that.
So it's a tiered fee structure.
Can you just clarify for the record the difference between a regulated unit and a partially regulated unit?
Yes. So under the rent registry ordinance that council adopted, the rental units are required to register. So that would be somewhat regulated and that a registry is a requirement. The fully regulated in this instance would refer to the rent cap. So they're both required to register and they're regulated in terms of the rent.
Thank you. And I'm having trouble squaring up in my mind bullet number three on staffing and program cost considerations, leasing and furnishing new office space. Does that mean that there is no space anywhere in City Hall that we can put six FTEs?
well um i think right now that we have space for the two for the rent registry
um i know with the recent move the school district i know there may be a look at city hall
so but we are also wanting to be prepared to explain that there might be a need to
uh there's a good chance there'll be a need to potentially lease space
outside of this building unless yeah unless space can be found or in another city facility so
Okay. Those are all my questions. I'm out of time.
Vice Mayor, please.
Thank you, Mayor. Thank you, Tom and team for working on this.
Just two quick questions.
On slide seven,
for the challenges budget implications for new run.
No, sorry.
I'm on the wrong page on mine maybe.
I'm sorry it's I don't know what slide I was just on but my questions are this
around the oh no it is slide 7 I was right sorry for the 15 million the city
departments are preparing for a 50 million dollar mid-cycle budget cut I
know we've had conversations up here and and and with staff about this the 1.3 to
2.5 million dollars for the program that is not included in the 50 million
dollar mid-cycle budget cut correct i mean i have the finance director nicole gonzalez come up
thank you for the question that is correct uh the 15 million does not include the potential loan if
authorized by the city council this evening so would that mean that for the mid-cycle budget cut
we would have to plan to cut up to $17.5 million from the budget?
If it was authorized in fiscal year 2027, that would be the case.
We would also build in the repayment.
So that would be taken into consideration as well
because it would not be an ongoing expense.
The $15 million reduction is an ongoing expense moving forward.
Got it.
So can you then, the second question was going to be around the general fund loan
to fund the program can you speak to what that means that in terms of I think you kind of alluded
to some of that of how it would be categorized but how it's a general fund loan and how that
would impact funding for other programs sure to clarify to we as part of this program we are
creating a new fund that's specific to the rent program the idea again is a director Tom has
stated is that it should be self-sufficient that is the intent of the
program so it would be a loan from the general fund and would be repaid anywhere
from three to six years there is a interest rate which would be applied to
that repayment as well so just depending on the the parameters of the program on
how quickly the loan could be repaid back to the general fund and so then
going forward all payments to this fund would come specifically out of that to
this program would come specifically out of that fund and not the general fund
correct it would come out of the specific fund that supports the rent
program okay great thank you and then the last question I have is for Tom it's
to do with staffing if we have the six FTE that are working on this and the
next item that we will be looking at is the mobile home rent ordinance it's who
What full-time employee then works on additional,
like the next, let's say,
any changes to the mobile home ordinance?
Is that your, would it include,
would that be in the work plan for the new employees
that would be hired under this program
or separate from that?
I don't want to preempt that policy discussion.
So part of it would be, you know, what issues come up.
But I can say that currently, since the mobile home ordinance was adopted in 2019, it's been staffed by the existing housing staff.
It had not had the opportunity to go through this process of developing a program budget and staffing.
So it has been absorbed for the time being by that and some third party hearing officer, legal hearing officers.
So it sounds like that means that there could be a possibility depending on how we structure the program.
Okay.
You mean overlap with, I guess it really depends on what kind of changes we have to make to the mobile home ordinance too.
But yeah.
Okay.
Thank you very much.
Council Member Simon, please.
Yes, question or clarification questions on the staffing and program cost considerations as well.
Considering the lease furnishings office space and salaries benefits, have you looked at consultant services to augment your staff?
Yeah, I think we've factored that into that kind of operating budget, especially for the first year or so, because, you know, we may not be able to hire everybody all at once, you know, at the six person.
And I think realistically, you're probably seeing a two-year process to getting ramped up.
So I think we have factored in, which is part of the staff intensiveness, but even potential third-party help to assist with some of that outreach and administration.
My question is, instead of six FTEs, having a consultant support long-term on this, have you explored that concept?
Well, I think we've kind of explored it in other programs where, you know, even if this is going to be an ongoing city program, I think what we've heard from you all, too, is the need to build in that experience of staff that are here on the ground.
Sometimes we know in planning and even building where we've used through parties, people change out.
And that can be a problem for retention of knowledge of San Leandro and our issues.
so part of it you know was the the need to and talking to other cities too we did explore in
talking to other cities how they explored that and their consensus was oftentimes no you want
this to be once it's adopted you would want this to be more in-house okay yeah i'm just from a cost
standpoint just want to explore all options to keep this as cost effective as possible
thank you we will come back to council mario to swarton i thank you i i'm actually looking for a
clarification on the budget um so um i'll save my comment but i'll frame this as a question
i guess we're going back to the jeopardy challenge where you try to frame your statement as a
question. So on the fourth bullet of slide seven on the biennial budget, in terms of context,
you know, there's a $50 million gap that we are all solving for. But when we look at
the blue row on slide eight, the reality is that it is not an additional 1.3 to 2.2 because
we are assuming a 650 cost to implement rent registry. So really rent stabilization is
depending on kind of what you're backing out from. It could be an additional 650 and beyond
to make it up to the delta to 2.2 million, right? That's correct. So the general fund loan premise
would give back an appropriation that we were counting on going from the general fund to the
rent registry program so there is a delta there that does help with the budget reduction exercise
if council is supportive of the general fund loan to get the program up and running so just to for
the sake of clarity it's not the 15 million dollar amount that we're solving for we've already
budgeted rent registry in the previous adopted budget correct so it's not an additional on top
of that I just want to make sure that that's clear that we're not adding unfunded we've already
funded rent registry so really the cost new cost to the program is wherever we land in
1.3 to 2.2 minus what we allocated, which is $650,000?
$648,000.
So $650,000 for the sake of rounding numbers.
So I just want to be clear that that's really where we are in terms of numbers, correct?
Okay.
But one, I just want to make sure we're all totally clear.
In what they're proposing, that money actually goes back into the general fund,
and then there is a full loan.
So just to be really, really precise.
Your point is very well taken,
but just so that there's not later surprise by the public.
Okay.
Okay, so coming back to Council Member Bolt.
I'm not done yet.
Okay, please proceed.
Thank you.
So I have a question regarding the,
I don't want to be redundant,
the basis for putting in the base rent at 2026 versus the current fiscal in the current year.
I'm a little concerned about essentially setting tenants up for a hike that sets the base rent at
a higher amount. Can you tell me a little bit about the thought process around a 2026 base rate
versus a 2025 base rate.
Yeah, maybe I have Alex,
maybe from the legal side to address that.
So the council can choose whatever date it wants.
Part of, if you have a base rent date
that is far before when the ordinance goes into effect,
quote unquote it just creates a big administrative hassle you know it's hard to keep track of it
it's hard to you get a lot of questions and all that and so it would increase probably staff time
to support that because you just get a lot of administrative work so that's why those dates
were proposed to give staff the lead time to sort of be fully ready to hit the ground
and answer those questions that come in from landlords and tenants.
So currently, I'm pulling up the draft ordinance right now.
So currently we're looking at an effective date of,
do you know it off the top of your head?
January 1 of 2027.
Okay.
So just to be clear,
there's no legal it's purely keeping it administratively clean correct okay so but
there's just there's no kind of legal argument for having it in terms of some sort of I mean in
individual circumstances you know individual landlords for their if they ever apply for a
fair return application that might be something that they raise as to why that the base rent
wasn't appropriate.
The fair return standard
isn't appropriate for that particular year,
but in general,
at a high level, there's no reason
the city can't select that.
For reference, when the city adopted
mobile home rent
stabilization, the base rent date
was a year prior
to when that ordinance went into effect.
Okay, thank you.
Going to Council Member Bolt.
thank you i just want to be clear on this part it's let's just say the 2.2 the max uh one-time
startup do you like is there a way if if we're going to spread this out over a couple years of
repayment you couldn't even get started without 2.2 million like what if we spread out you know
$500,000 a year as we went forward, or is that like a no-go?
Instead of like putting $2.2 million into a fund and then you guys draw it down, save
us from that and put less in to start with what you need.
Like, is that feasible or is it just, hey, look, we're going to have a $750 here, we're
going to have a 1.1 here.
Like, we need it now.
so the full version that aligns with council's direction is essentially in that range per year
to operate so it has to be a startup cost um it it wouldn't the program wouldn't function
if a small amount was provided over time because as director leal mentioned the cost of providing
education and outreach is highest before you have any revenue coming in. So it's truly a startup
cost that is needed. And then what I think I just heard you say is it could be in a year from now,
we may need more than this. If it's not being fully funded on its own within three years,
you're going to have to come back and get another loan from the city's general fund.
So the modeling is a great question. And the modeling is conservative on purpose to try to figure out the worst case scenario for for the loan amount.
And by the time the loan documentation is brought before the council, we will have the fee study and have more refined budget estimates.
So the thinking is that there would not be a scenario in which we're coming back for additional funds, barring any very unforeseen circumstances.
but that would require certain enforcement actions that may be challenging, such as special
assessments that council votes on to hold property owners accountable and get that revenue into the
program. So the assumptions do require actions that aren't always the most popular. No, fair
enough. I just, I, I look at this and I think about when I would ask for money, do you need it
all right now right and the answer very well could be yeah I need it all to get
this done right and that's fair so thank you vice mayor please
thank you mayor and thank you customer Valston for following up I just had just
to confirm so I understand these numbers going forward because I know it's going
to be an important part of a lot of conversations that have been coming up
minus the 675 that has already been allocated for the rent registry 650 okay
I heard 675 so 650 then that means that the one-time startup funding need is
650 to 1.875 and right there says one time startup funding need but then we're talking about per year
so the the rent registry assumption was an annual allocation of 648 until the program
was self-sufficient. We're proposing for a cost recovery program to say thank you, but no thank
you to that annual allocation and instead have a one-time startup loan that would be repaid with
interest to the general fund. So it's a different model entirely. And so this amount is one time
and the precise number will come back once we've done our reports and due diligence in the new year.
but it is not an annual allocation.
Okay, thank you.
Seeing no further questions, a couple of my own page.
One that says passive enforcement.
I believe that's slide seven.
Is this eight?
Or eight?
Where do we talk about passive enforcement?
Maybe it's right there, okay, thank you.
So what do you mean by passive enforcement?
I think so with that enforcement it's having the staff you're basically again
with the outreach we that's very time incentive so probably more limited
outreach using the website would it be fair to characterize it as complaint
based I think yeah you'd be less able to enforce that's correct you would still
have an enforcement hearing officer so adjudicate that situation but right the
the ability to enforce would be lower.
So we've got the startup loan of some number,
perhaps as much as $2.2 million.
What is the operating?
So this thing is running, it's just all in place,
it's operating each year, what is the cost?
For the full model?
Yeah, so I mean you can give me three different numbers
if you want to, but just in steady state, forget ramp up, forget loans, forget any of that stuff,
in steady state in today's dollars, what is our estimated cost?
For a full year, we're estimating around $1.2 million for the base option,
$1.9 million for the mid-range option, and a little over $2.4 million for the full option.
And this is the annual run rate?
Yes.
Okay.
And then if I'm understanding base correctly, the $1.2 million option, that's passive enforcement.
As Director Leao stated, it's complaint basis, the right to a hearing, but it is not proactive enforcement and review of,
this would have no rent registry so there wouldn't be data coming in that staff is reviewing
okay without rent registry number two kind of the mid tier is rent registry
on all price controlled units
and then the full option is full rent registry
on all units as well as,
and as the last enhanced enforcement
is proactive enforcement,
really going out and looking for all the bells and whistles.
Partial, full, right.
Okay, thank you.
The other question that I have here
with respect to enforcement penalties,
the way that they were framed was in the context of
percent of registry fee.
So for example, if you fail to register
and were in the fully regulated realm of $300 per unit,
hypothetically speaking, if you fail to register for two years,
I'm assuming that's $300 extra on top of your fee as a penalty.
So it'd be $300 plus a $300 penalty.
Okay. My question is a little bit beyond that.
This might be a legal question,
so I'll let you defer to legal if that's the right way to go.
Why is it a percentage of the fee
as opposed to they are operating, you know,
outside of the way that they're allowed to operate,
particularly if they don't, for instance, have a business license?
Because if they had a business license,
and presumably we'd know that they were there.
So why couldn't we charge them a month's rent or two months rent
or some number that's more than a very small registration fee?
I'll start from the staff perspective.
For the modeling that we're doing to give the council these estimates
to inform policy direction,
using the percentage was a way for the modeling to be dynamic.
we will be using the fee study to determine a legally defensible fee for penalties because of
the cost that goes in to tracking them down and enforcing. So the fee study will have the base
fees and the penalty fees. But I will defer to legal if you have questions about how a penalty
My question is, can our penalty be a month's rent?
So there are some restrictions in state law about what we can set our penalties at.
We'd have to look in at if that high amount would be legal, but it doesn't have to be a percentage-based fee.
presumably also the fee would be different
if you were one month late on registering
versus 12 months late.
There'd be some differential there,
but as Avalon said,
this percentage was really used for modeling purposes.
It does not have to be how the fee is actually structured.
Thank you.
So with that, we'll close questions
and come to public comment on this item.
Mayor, we have 15 cards from the room.
How many hands are raised online?
Presently four.
Okay, if you are online, please raise your hand
because we're going to count you off
and we're going to set the time that we allocate
based on the number of hands that are raised.
So this is your opportunity online to raise your hand
and to be accounted for
because we're allocating time accordingly.
How many do you have?
Still four, Mayor.
Okay, so what we're going to do is we're going to take those four speakers online first,
and then we're coming in person.
Who are the four speakers that we'll be taking today?
The four speakers are Carol Haberkoss, Douglas Spaulding, John Mina Schwartz, and Mina Young.
Perfect.
and then so what we will do is we will start online given the number of speakers that we have
that have represented that they want to speak we're going to give people two minutes
please proceed the first speaker is carol
good evening mayor city council and staff my name is carol haberkos and i'm speaking
I'm also here with Richard Becker
who wants to make some comments.
So I'm going to get him started
and I might need to help him.
My name is Richard Becker.
I'm asking
to be full of friends.
Okay.
Okay, I'm going to continue for him.
So I'm speaking for Richard Becker.
My name is Richard Becker, and I've been a renter in San Leandro for 45 years, where I worked and retired from being a letter carrier for the U.S. Postal Service.
I urge you to approve the rent stabilization ordinance because it is good public policy.
We need to have housing that provides people with the ability to build neighborhoods that are safe and vibrant.
Rent stabilization creates stable neighborhoods and communities.
Cities who have rent stabilization are more desirable destinations.
Rent stabilization helps the local economy by bringing and maintaining long-term businesses,
which in turn gives the city a more sizable tax base to provide for the city's needs.
The people in government who do this will be reelected again and again because they provide good governance for the citizens who voted down into office.
I would also like to make my own.
Thank you.
The next speaker is Douglas Spaulding.
Part of the stress I'm feeling is this game of chutes and ladders that the rent stabilization ordinance has become.
You, the council, took an important step up the first rung of the ladder by passing the rent registry.
Please do not repeal or revamp the rent registry, as my friend Emily Rich likes to say.
Don't do it.
So you took a second important step on October 13th by acknowledging these five common points.
There was a majority for the five points on slide five.
And I might add that it was not a CPI or percent.
It was an and, a 65% of CPI with a cap of, I would argue, 3%.
It's a combination of the two.
So now we're faced with a wrench in the works.
Oh, my God, the cost.
And what it means for housing to be a priority in the city of San Leandro is that you pay for it. This is an essential service. You don't force the program to go take out a loan from the general fund and then play a penalty if it's not paid in time. You figure out how to do it.
You know, I was talking earlier about the consent calendar. Gosh, I found three hundred thirty six thousand in the affordable housing trust fund.
Sounds like it might be something housing related. I don't know how transferable money from the development fee is, but there's like eight and a half million dollars there.
I'm sure you can figure it out. So the problem is the more that these kind of wrenches are thrown in the works, the longer it takes.
this should not be delayed until January of 2027.
Okay, maybe it's an inconvenience to the staff,
but what you're doing is you're allowing landlords
to jack up their rents over the next year.
You're giving them a big wide open pass.
This should take effect on December 31st of this year
with a base year of 2025
if you really want to protect the renters in this city.
Thank you very much.
Thank you.
The next speaker is John Meadows-Schwartz.
Hi, good evening. I want to thank the council for moving toward a more robust rent stabilization ordinance to protect renters in the city.
I think that speaking as an owner, I think that the kinds of protections in the strong version of this ordinance that they're seeking confirmation on are ones that would be fair for renters and owners alike.
I think owners have an obligation to figure out what is going to work for them and live with the regulations that are designed to make their product higher quality and reduce risk of evictions.
I want to note, by the way, that relating to the amount of the cap, I think that the – well, emphasize that if we are able to turn things around for housing production and meet our regional housing needs assessment goals of 3,855 new homes built in the city by 2031, just bear with me on this,
The sign of that success, if we were to do that, would be that market rate rents would stop growing and would indeed likely drop, as we have seen in places like Austin, Texas, where there was significant construction.
So this outcome that we have all said we want to achieve means that prevailing rents would drop, either in real terms or hopefully even in nominal terms.
So I hope we can move toward this fairer system.
And regarding the enforcement, I just think that if we're passing a law, we should be seeking to do the best we can to see that law enforced and not go the passive route.
Thanks and have a good evening.
Thank you.
The next speaker is Mayna Young.
Hi, my name is Mayna Young.
I'm the president of Business and Housing Network with thousands of mom and pop owners throughout California.
We are trying to stay afloat with all the regulations, state level already.
Very challenging.
And local levels are just putting us to the borderline.
line. And as you can see in San Francisco, a lot of the owners have given up. They cannot afford to
stay in business because insurance is going up. It's very difficult to get insurance. Rent
regulations are causing a lot of litigation. And even the insurance companies cannot stay in San
They are pulling out the market.
As you can see, with the increased costs and at the same time, you are putting a lower cap.
You know, remember, if you put in a million dollars in the bank, you can get a four percent without any risk.
OK, that's the interest without any work done.
So mom and pop owners, they're usually hands on and they have to do a lot of work with more regulation and less return on investment.
It just doesn't pencil out.
They will leave the market, exit the market.
And so fewer housing availability for the renters.
So it's not going to help anybody.
So please reconsider if you want to keep the housing stock.
Places without rent control, they're actually having a better time.
I mean, they have better housing prospects and more people are going to develop.
Thank you. Your time is up.
Mayor, that concludes the four hands raised.
So we'll close public comment online and we will do the same process here.
all the cards that were turned in those will be the speakers that we call no additional speakers
the first speaker cards are from jenny madsen
craig williams and chunchi ma
I don't want to take up too much time.
I got it. I got it. I don't want to take up too much of your time tonight. I've already done this.
There's a group of people who were clear. We need to have a 2025 base year in order to go forward.
We need to have 3%.
rent cap. We need to have no banking and no capital improvement pass-throughs and no
exemptions for smaller rental properties. I still don't, you know, I don't know anybody who lives in
a golden duplex, but I think they exist. And I think from the last mom and pop landlord speaker
that you heard, we're looking at a black market. And there will be a ramp up period in how fast
this gets adopted. There are landlords who are already trying to figure out how they are not
going to allow themselves to be registered. But I know people who rent now who have been told by
their landlords for the last 10 years, if anybody asks, tell them you're my wife, tell them you're
my aunt tell him you're my sister this is a standard operating procedure but i do not believe
that this is going to affect any mom and pop's actual ability to stay in business because they're
already they've invested in the property and are they just going to leave it empty that's not going
to bring them any income either so um please listen to people like richard becker i he's a
really important person to me. He has Parkinson's.
I'm trying to stand up here for all the people that I've met over 20 years in this town
who don't feel that they can come forward and ask you for anything now. So please do your best.
Thank you. Your time has elapsed. I'd also like to note for the administrative record
that we have been joined by Council Member Azevedo on Zoom.
The next speakers are Craig Williams, Chun-Chi Ma, and David Stark.
I'd like to also advocate that we support a rent date that's maybe 2025 so that we don't have these big rent increases before the date starts.
I'd also really like to see the city, including the staff, do some sort of educated estimate of what the profit rate is for landlords.
You know, if we know that 80% of landlords own the property before the tech boom, then they probably were making a 10% profit then, and it's probably much higher.
So if the staff could come up with that, it would be very, very helpful for the city.
In terms of the CPI, the CPI actually might become an issue that is not that accurate, especially with the tariffs.
The tariffs are way beyond increased, the inflation rate way beyond the 2% or 3%.
so that's something that we should consider. The final thing I'd like to just say is that
I just heard a central banker say that there are three types of inflation. There's good inflation
which is like around two percent then there's what they call bad inflation which is when you have
oil spikes or food spikes the price goes up but also the price comes down and then you have a
third type, which is where the price goes up and it doesn't come down. And that's what tenants are
facing, this third type. So you have the good, the bad, and they call the third type the ugly.
So it's pretty easy to remember. So keep that in mind, that there's the good, the bad, and the ugly.
Thank you, sir. Your time is up. The next speakers are Chun-Chi Ma, David Stark,
Chris Tipton.
Hi, good evening.
My name is Changi Ma, housing provider in San Diego and a member of BOM.
Two data points to share tonight.
My own rentals data.
Our rent has been flat for the last couple of years due to a soft rental market in Alameda,
a few hundred dollars below market level, but very challenging operation environment.
Starting from 2022 to 2024, in three years span, property insurance premium increased by 80%, nearly double.
Water bill 38%, PG&E 33%, trash recycle 45%, all of this number much larger than the 2.8% CPI number.
Such a huge spike in costs are really challenging the normal rental operation.
If any of the city council want it or have some doubt, we can send you the bill, a copy of the bill, so you can verify the authenticity.
Number two, Oakland began its rent control program in 1980.
By 2016, they began charging $30 a door to generate about $2 million a year.
Fast forward to 2025, basically less than 10 years later.
They are charging $137 a door to bring in $30 million for running their rent control program.
The cost increase work out to compounding at 19% a year.
I believe the current, whatever, the $1.3 to $2 million annual budget proposal from Housing Department will prove insufficient in a few years' time.
ballooning city's budget deficit that you guys are facing
race to the bottom of this rabbit hole of draining more and more resources,
which could otherwise offer more direct relief to those in need
if applied appropriately.
Thank you again for listening to both sides.
Rejecting the extreme policy and may sound and data-driven...
Thank you, sir. Your time is up.
The next speakers are David Stark, Chris Tipton, and Anthony Adesi.
Good evening. I'm David Stark, representing the Bay East Association of Realtors.
Tonight, you're considering a funding mechanism without any economic impact analysis,
including what happens if there isn't enough program fee revenue,
deficit spending, cut more city services and staff.
You're also asking rental housing providers and their tenants to pay ongoing operational costs.
Now, during June, you passed a budget that included cutting sitting staff, eliminating vacant positions, cutting public works, libraries, recreations, human services, and community development.
In that budget, you also stated your priorities, quality of life, economic development, public safety, infrastructure, and housing and homelessness.
This new rent stabilization program and the new staff positions discussed tonight won't repair streets, fix potholes, or maintain parks.
They won't put out fires, improve emergency response time, or increase police or fire capacity.
They won't work in your libraries, on recreation programs, or in community services.
They won't create a single new rental housing unit or incentivize new development.
These new staff will implement a program that brings more cost to housing providers, especially mom-and-pop providers,
which directly conflicts with the city's stated goal of encouraging investment and economic activity.
You had to use several million from your reserve to balance your budget.
Are you sure San Leandro residents want you to spend millions in startup costs
and hire new city staff for a program that will actually reduce the rental housing supply?
As policymakers and stewards of city resources, I encourage you to reconsider rent stabilization
given San Leandro's fiscal constraints.
before you proceed with this ordinance please figure out how to pay for it thank you
thank you the next speakers are chris tipton anthony adesi and sandeep sukhija
hello my name is chris tipton i'm with the east bay rental housing association
our goal is not only to educate housing providers and for the rental community but also to work
with local and state legislators to help them understand the complexities and difficulties of
providing rental housing, an essential thing that we need. I'd like to ask a simple question.
What does it really actually cost to provide housing? For example, a two-bedroom apartment
in San Leandro. Today, the average rent for a two-bedroom is $2,282 a month. Let's say $2,300
a month for an apartment. To someone, that may seem like a lot. That may sound high, but let's
look at what it really costs to provide housing. Probably taxes alone are about $500 a month for
that unit. Insurance, after sharp increases, runs about $200 a month. Water, sewer, garbage, other
utilities, about $150 a month. Routine maintenance and repairs, which have gone up significantly.
Let's go with a low side of $200 a month. That's before any major repairs. There are legal
compliance, license fees, accounting, let's say $100 a month. Rental owners have to pay for vacancy
losses when they turn over apartments. Long-term capital improvements now, which we can't pass
through, like roofs, windows, sewer laterals, electrical systems. There's new balcony inspections.
Our owners are paying thousands and thousands of dollars for these improvements. Let's budget
maybe $300 a month on a low end just for that. So the rent is $2,300 a month. We're already at
about $1,800 a month.
We haven't even included if you've got a mortgage.
Mortgage costs probably about $1,500 for a two-bedroom unit.
So if the bedroom unit is rented for $2,300 a month,
and my real-world expenses are $3,300 a month,
you can see how there's real concern from owners
about these random rent caps and numbers that you guys are discussing.
It doesn't even include the rent registry
and these additional fees to run this program
that you'll be charging owners for.
60% of CBI is only 0.8% right now.
Thank you.
Thank you.
Your time has elapsed.
The next speakers are Anthony Adesi, Sandeep Sukija, and John Sullivan.
All right.
Good evening, Mayor and City Council members.
I want to say that I'm proud to be a housing provider in the city of San Leandro,
and I quite enjoy that.
I take a lot of pride in providing apartments
that people lease from us that they can call their home,
although some days are great and some days are bad.
This means that we make sure families
have clean, safe, and reliable homes.
I'm the person who knows when a unit needs a full renovation,
just minor repairs, and we are the people that get the call
when the heater fails in the middle of the night.
I want housing to be both affordable and well-maintained,
but rent control is a one-size-fits-all policy
and is not need-based. It over time weakens the housing we depend on. Cost keeps rising
every year. Insurance, utilities, materials, payroll, required upgrades that governments
put in place, such as seismic. When rent increases are held below those real costs,
owners are forced to cut somewhere. Repairs get pushed out. Seismic work gets delayed.
energy updates don't happen, and the maintenance gets reduced.
Then vacancies tighten, families get stuck living in less than ideal conditions,
and new families are searching for housing, have fewer options or choices at increased costs.
Affordability is also about income.
The widening gap before rent and their compensation is fundamentally a wage problem.
Capping housing prices doesn't fix that mismatch.
Rent control is a short-sighted solution that has long-term costs by discouraging reinvestment and limiting supply.
And I think we should focus on building more homes, support pay growth, and strengthening San Leandro's local economy.
Thank you.
Thank you.
The next speakers are Sandeep Zoukija, John Sullivan, and Jennifer Rizzo.
Hello, Council members. Thank you for giving me the opportunity to speak this evening.
My name is Sandeep Sukhija, and I do not live in the city of San Leandro.
I own one fourplex and one triplex in this city for the last five years,
so I am that typical smallish landlord that is often discussed in these conversations.
While I do not live here, I consider this wonderful city to be my workplace.
I maintain and operate these two buildings, provide great housing to seven families, and in return, try to make a small income for my family.
The last several years have been extremely difficult to make any income from these properties.
The soaring interest rates, combined with massive increase in the utility rates and insurance costs, has made it impossible to have anything left over.
Operating expenses continue to rise far faster than rents.
Despite this, I have continued to spend on maintenance and upkeep so that my tenants have safe, well-maintained homes.
The only hope in this situation is that eventually I can raise rents in line with the market
to be able to get in a position where a so-called income-producing property will actually produce
an income.
I respectfully ask the council to not take away this hope from me by implementing rent
control.
Thank you.
Thank you.
The next speakers are John Sullivan, Jennifer Rizzo, and Chuyut Leung.
Good evening, Mayor Gonzalez and the City Council members.
I'm John Sullivan, been a housing provider here in San Leandro for the last over 50 years, really,
covering some of the 400 units.
The rentals we own were built way back in the 1950-1970 era, as is with most properties,
most apartments in San Leandro.
Other housing providers are in the same dilemma, and that is major renovations, absolute major
renovations and upgrades when a tenant moves out because of the age of the properties.
I've provided to each of you an outline of this project, before and after photographs and so forth.
And you were invited to come and see the work in progress.
Mighty expensive, mighty expensive.
Cost in excess, well in excess of $20,000 per unit.
That invitation is still open, by the way, and we could review contracts and invoices and so forth.
But it's money well spent, a positive cost really to our city, creating top-notch, like-new units right here in San Leandro, not in Stockton or Manteca.
So to finish up, to do this, our budgeting was built around our state rent regulations.
So please, I sincerely ask you, keep any restrictions at that level, or at least at the 5% level.
If we can't continue to do this upgrading work, our apartment, our stock will decline just because of age.
And that will cause a blight, a downturn to our vibrance and the other neighborhoods.
So please don't let that happen.
Thank you.
Thank you.
The next speaker is Jennifer Rizzo, followed by Chiyu Lian, followed by Emily Rich.
Hi, my name is Jennifer Rizzo, and I'm with the California Apartment Association.
And we respectfully oppose this proposal to enact additional rent control measures in San Leandro.
Just a few years ago, the state of California established a statewide tenant protections,
including rent caps and just cause eviction protections.
That law AB 1482 was intended to create a balance protecting renters from
excessive increases while still allows it allowing housing providers to operate
and maintain their properties responsibly.
The city staff's proposal of limiting rents in San Leandro to either 65% CPI
or a percentage around 3 to 3.75 is significantly more restrictive than the state's cap at 5% plus
CPI. Even Section 8 has a higher allowable rent increase than what San Leandro is proposing.
History and experience shows that rent control discourages investment in rental housing,
reduces new construction, and leads to fewer available units over time. When housing providers
can't keep pace with rising costs. The result is deferred maintenance, fewer improvements, and in
some cases, owners exiting the rental market altogether. This ultimately hurts renters,
especially those searching for housing, as tighter supply drives up the costs and makes it harder for
new residents, seniors, and working families to find a home in our community. We respectfully ask
the city to consider the impacts of this proposal and to recognize that California already has rent
caps in place. Thanks for your time. Thank you. The next speakers are Chuyit Lian, Emily Rich,
and Deborah Acosta. My name is Chuyit Lian. Thank you, Mayor and City Council.
Yeah, I want to tell you I'm a retired nurse.
I own three units in San Leandro.
I provide, I'm a proud property owner and rental property manager for my own property for 10 years.
and I want to tell you after I seen all this restriction coming I decided get out
the rental market in San Leandro that's all I'm going to tell you
thank you the next speakers are Emily rich Deborah Acosta and Derek Barnes
Hi, I'm Emily Rich and I'm a member of the housing platform of the Big Tent San Leandro.
We sent two emails to the council and staff in the past couple of days and I hope you've had a chance to read them.
But in case you haven't, I'd like to summarize them, our points.
First, it is a very bad idea to set the base rent date a full year in the future.
If you do that, many landlords will elevate rents as much as they can during 2026.
Why incentivize rate hikes?
Likewise, it is unwise to set the base year for purposes of setting a landlord's standard return on investment for the coming year, 2026.
If you do that, many landlords will forego any and all maintenance and capital improvements until 2027 in order to maximize their apparent return on investment for 2026.
Why incentivize the neglect of San Leandro's rental housing stock?
Second, please do not adopt either of the two programs with cheaper estimated startup costs.
The proposal with no rent registry and lessened enforcement by the city clearly will not serve either the renters or the city.
The second, more mid-level proposal, offers a $300,000 to $700,000 startup savings, but you would be buying a pig and a poke, to use an antiquated idiom.
How much more effective would what staff calls enhanced outreach and enforcement be than the basic outreach and enforcement?
How many people will you be leaving behind?
How could the council choose one program over another without any understanding of what bureaucracy they are buying?
Because this decision will affect not just the startup costs, but the entire program going forward.
Lastly, and this is a song we've been singing for over two years.
Please limit annual rent increases to 65% of CPI or 3% of current rent, whichever is less.
Thank you.
Thank you.
The next speaker is Deborah Acosta, followed by Derek Barnes, then Emily Grego.
Deborah Acosta, League of San Leandro Voters and Mission Bay Residents Association.
So I had some very pointed comments to make today about the specific in the ordinance,
but I think I'd rather see the actual ordinance itself before I address those issues,
because it sounds to me like tonight's about budgets.
But what I did hear, Tom, which is very interesting, is that elimination of capital improvement pass-throughs.
What I didn't hear was anything about elimination of capital replacement pass-throughs.
and there's a big difference.
The ordinance needs to address that.
Capital improvements is about increasing the value of the property and adding amenities.
Capital replacement is about bringing the property up to code and up to living standards.
There's a big difference.
I look forward to seeing how that's going to be addressed in the ordinance.
Thank you.
Thank you.
The next speakers are Derek Barnes, Emily Grego, Mike McGuire.
Good evening, council members and mayor.
This is Derek Barnes with East Bay Rental Housing Association.
So when I think about housing, and I've been up here before to talk about data,
I always go back to what are the problems that we're trying to solve and what are those goals?
Problem number one is reduce eviction and eviction filings.
And the way to do that is with emergency rental assistance.
For the $2 million that I heard that would take to fund this program for the first year, we could fund 400 households at a cost of $5,000 per year if we wanted to keep people housed that were most vulnerable.
Also, I want to add that county funds will be made available through Measure W, and that will be in mid-2026. And we have been strongly advocating this to the tune of about $20 million across the county, which would go to help keep our more vulnerable residents housed.
Number two, reduce renter and owner conflicts.
This is alternative dispute resolution.
You heard me talk about this before.
I think we need to reactivate the Rent Review Board.
It is underutilized, and we need to figure out what the data is telling us about that.
Number three, reduce homelessness.
The point-in-time counts for San Leandro in 2022 suggest that there are about 404 people who are on the streets that are unhoused.
In 2024, that number reduced down to 283.
So you're making progress in that regard.
And I think we need to look for ways to continue that with more affordable unit production, as many of the speakers said earlier.
We are not meeting the city's arena targets.
That's problematic.
And we really need to bring our vacant units back into the market because that is the low-hanging fruit in this equation.
the lowest cost way that we can bring rental housing back into the market.
Thank you.
The next speakers are Emily Grego and Mike McGuire.
Hi, everybody.
Good evening.
Emily Grego with the San Leandro Chamber of Commerce.
So I'm here again just to reiterate that the Chamber of Commerce does oppose this rental
stabilization ordinance.
We do share the city's goal of housing stability and affordability, but believe this ordinance will create unintended economic and administrative consequences that undermine that goal.
We did survey our members and of those who responded, 60 percent oppose the ordinance and 70 percent are very concerned it will negatively affect investment in San Leandro.
Some of their comments that were written on those surveys, additional regulation discourages housing investment and reinvestment.
Many rental units are owned by middle class and immigrant families, often as a retirement safety net.
Skyrocketing insurance, maintenance, taxes, and utilities are not reflected in rent caps.
Responsible housing providers who have kept rents low are being penalized.
members recognize the challenges faced by seniors on fixed incomes however they believe broad rent
stabilization does not guarantee relief for the most vulnerable so we believe that the bottom line
is this ordinance is well intentioned but risks creating new bureaucracy discouraging housing
investment and reducing long-term housing and supply quality are inevitable better alternatives
would be to explore targeted rental assistance for vulnerable seniors and families to prevent
them from being displaced, support job creation, income growth, and housing production. The San
Leandro Chamber urges the City Council to pursue practical, fiscally responsible solutions that can
be realistically implemented, given current and looming budget concerns and constraints.
At a time of significant financial uncertainty, the city should avoid creating new departments or programs when existing resources can be strengthened.
Thank you. Your time has elapsed.
The next speaker is Mike McGuire.
Hi there. I've taught economics for a long time, for a couple decades and all pretty much the local community colleges, including Chibau and Las Placitas.
and I'm really struck by the economic nonsense that has been put forward by the landlords here.
First of all, housing is not a free market. The pure laws of supply and demand do not apply.
You know, some perverted versions of them do, but the pure laws do not apply. You know,
you raise a price a little bit that's already excessive and it doesn't make supply collapse
catastrophically. And also, I think we should see what the actual numbers are. What are the actual
costs? What are the actual revenues that landlords are getting? Some of them have paid off mortgages
that are making money hand over fist and still trying to raise rents. Some of them are barely
scraping by. Some of them pay too much for their properties in the first place so that they
couldn't make a living with what tenants were able to pay. That's bad business practice.
And when people are talking about taxpayer subsidies to landlords to pay for low-income
people's rent, we have to ask the question of whether that rent is at all reasonable in the
first place. We are always hearing about a fair rate of return for landlords. We're not hearing
what a fair rate of rent for tenants is. We don't seem to use the word fair when it comes to tenants
very often. And incidentally, I'm a homeowner. I am not a tenant. I don't rent out anything.
And also in terms of preventing evictions, most people evicted were fully current on their rents
in the last few years.
It is a myth that they did not pay their rent.
Their landlords just wanted more.
Thank you, sir. Your time has elapsed.
Mayor, that concludes the speaker cards.
So with that, we will close public comment.
We will come back to Council for further questions,
discussions, and guidance.
We will begin with Council Member Revitas Walton.
Thank you.
I did want to ask a question that was brought up by one of the public commenters and I just wanted to, I don't know if it's a legal question, so I'll have the chair decide.
Capital replacement versus capital improvement, is there a legal definition to the difference?
Yeah, excuse me. Great question. I think part of the confusion is because in the mobile home rent control ordinance that the city has, we use both terms and they mean different things in that ordinance.
capital replacement in the mobile home rent control ordinance has the same meaning as capital
improvement and our ordinance which that's talking about you know you your roof has
reached the end of its useful life and you need to repair it or you're doing seismic upgrades
in the mobile home rent control ordinance the term capital improvement refers to a improvement you're
making to the property, adding a pool or something like that.
This current ordinance has never included any provisions that would allow
capital improvement, quote unquote, you know, a new pool,
something like a gym that you've added to the facility to be passed through.
It did used to allow those sort of capital repairs of, you know,
replacing your roof at the end of its life to be passed through per the council's prior direction
that was taken out of the ordinance. And so now if someone wants to recover those costs,
it would only be possible through the fair return process. Thank you. Thanks for that clarification.
So just to bottom line, it sounds like we don't need to have that clarification
within the context of rent stabilization. Okay. Thank you for that clarification.
Okay. I would like to propose that we stay, if there's agreement, start off at 3% and or 65% of CPI, whichever is lower.
i would like to propose that we keep the base rents at 2025 i'm fully understanding that
i understand that there's an administrative burden here but we have the staff to support it
and would like to discourage um would like to discourage spiking rent to ensure that you
you know folks are that the that the base rent is spiked and i know that it won't happen everywhere
but it might happen to some people.
So want to ensure that we prevent that.
I also would like to propose that we move forward with the 6-FTE proposal,
which includes both rent stabilization folks and rent registry startup costs.
and then in terms of
I'm looking at the direction council direction slide on page 16
I would just leave that at that I think I'm interested in learning more from my
colleagues kind of what model we're looking at in terms of cost recovery and the the fee part but
that's I think part of it is going to come back to us next early next year but I would like to
put that out there to see if there's some consensus that we can form around these
parameters I think we're really really close based on our previous discussion
and would like to start off the year with some sort of agreement around those parameters which
i think we're almost there so i'm i'm hopeful and with that i'll yield my time back to the chair
councilmember regular please uh thank you mayor gonzalez and thank you staff for you know i know
this has been a lot of work um your hard work is appreciated and you know we're finally moving
along as many, many years of advocacy and generation of council members who have been
advocating to finally get this through to fruition.
I think we have heard from some of the public with regards to giving direction with regards
to 3% or 65% of CPI, whichever is lower.
I also like to I know this is not on here but to adopt a base rent date of July 1st 2025
and a base year of 2020 of 2025 and I would also you know with regards to the direction
confirm the staff recommendation on the full cost recovery model so what we have listed here with
regards to the rent registry um when civilization has enhanced enforcement options which is estimated
to be 1.3 to 2.2 million um i i think uh this is you know this is a great start and i'm looking
forward to this entire process and the next the next readings on this um but i think uh
mayor are we looking for an action a motion on this right now we'll just take everybody's
commentary and then we'll come back for a motion or for to build some sort of
consensus explicitly. Gotcha. Okay. That's my, that's my comment. And with regards to direction.
Thank you. Thank you. Nobody else seeks to weigh in. Is that correct? Okay. Council member Simon,
please. I support both of my colleagues recommendations. I also would like to look
at efficiencies though as i mentioned before bringing on six staff members and furnishings
and leasing and i understand what you're saying you'd like knowledge to continue on with permanent
staff however i have seen consultants in other fields but i have seen consultants that serve
long-term and specialty fields and any way we could save money i think we should explore those
we are in a unique time, we are in a difficult financial situation.
I think we should really keep our options open to alternate means to staff this.
But as far as the percentages, I agree with both of my colleagues who've just spoken.
Any other comments at this time?
Seeing no other comments, I think you have probably the guidance that you need at this
time.
Okay.
Okay, I agree with them.
So let us move on, we'll close this item.
Okay, so we've closed this item, we're moving to item 10A.
It was guidance.
There were four people, or three people, I agreed.
That bill's, that's majority guidance.
I think just for the record,
I just would like to ensure that we're all on the same page.
Just to clarify what there's consensus on.
City Manager, would you please read it?
Thank you, I appreciate it.
Thank you, Mr. Mayor, Council Member Rivera's Walton.
So what I have here is 3% or 65% of CPI, whatever is lower, base rents at 2025 rents.
Also confirming the staff recommendation, which is on slide 16.
Thank you for the clarification.
Thank you.
We're closing aside and moving to 10A.
So for this item, we have city attorney here introducing this item.
Yes, let us take a break until cell phone time says 9 o'clock.
So we are in recess.
Thank you.
Thank you.
Thank you.
Thank you.
Thank you.
Thank you.
Thank you.
Thank you.
Thank you.
Thank you.
Thank you.
Thank you.
Let's go ahead and reassemble.
Okay, it is nine o'clock and we are reassembling.
We have a quorum in the room.
City attorney, would you please introduce the item?
Thank you, Mayor.
I'll have the city clerk.
Next slide, please.
This is reconsideration of council action.
We'll call it 1 or 10A.
And under the charter, here's the charter section that provides the mayor this particular power.
And the mayor does possess the authority to suspend implementation of any action taken by the council by filing with the city clerk within three days after such council action and notice of suspension thereof.
that information was provided in the packet that's attached to this agenda item and the
suspension shall constitute automatically a motion for reconsideration of the action taken
which would be voted upon at the council's next regular meeting. Next slide please.
This was the motion to approve and authorize the city manager in coordination with the city attorney
to execute a limited waiver of the attorney-client privilege
for the purpose of releasing the June 2024
Revenue Measure Tracking Survey results.
The votes were Councilmember Aguilar abstained,
Councilmember Azevedo no,
Councilmember Bolt yes,
Vice Mayor Bowen absent,
Councilmember Simon abstained,
Councilmember Ferris Walton yes,
Mayor Gonzalez yes.
So the action tonight, according to the charter,
is the first vote on the mayor's motion to reconsider,
And that motion is automatic based on the mayor's submittal of the motion under the power vested in him by the charter.
And if the motion to reconsider achieves the four affirmative votes, then the item is brought back and the council can discuss.
we consider adoption of a resolution to approve and authorize the city manager
in coordination with the city attorney to execute a limited waiver of the
attorney-client privilege for the purpose of releasing
the june 2024 revenue measure tracking survey results
staff and i are available to answer any questions
any questions
seeing no questions i just want to be clear so it's a
two-step process if people want to waive the privilege on the document which are
a number of us had the opportunity to look at physically if they're willing to
weigh the privilege on that they first have to vote yes on the motion to
reconsider and then they would vote yes on the second motion is that the correct
correct legally that is accurate yes seeing no questions I'm gonna go to
public comment on this item
Mayor, we have one comment card and there are three hands raised on Zoom.
Okay, please proceed in person, then we'll go to Zoom.
The first speaker is Kat Wellman.
Good evening, Mayor and Council members. I guess I'm actually talking then on both steps of the procedure because I'm going to encourage you to reconsider it.
I'm here tonight because I'm very deeply concerned that the city may be creating more distrust in voters' minds by choosing not to release the raw data of the most recent poll.
transparency is not a political issue it is also not something to be neutral about
it is the cornerstone of good government which is denigrated when the city spends public funds
and then refuses to share the results of that expenditure with the public based on the
information that has been released from the 2023 and 2024 surveys public confidence in the city's
management of public funds appears to have dropped by 12 percent in just one year. Today,
only 40.6 percent of respondents view the city's financial management favorably. That is not a
small decline, and it should concern all of us. If we expect voters to support funding for critical
infrastructure and public safety projects, no matter what funding mechanism is used,
We must first rebuild trust. Trust does not come from withholding information. It comes from openness and accountability.
We are not asking the city to release the consultants' interpretations or analysis.
We are simply asking that the raw poll data be made public so residents can view it for themselves.
When information is withheld, people naturally assume there is a reason, and that perception alone can damage confidence in city leadership.
By voting to release this data tonight, the city has an opportunity to demonstrate a genuine commitment to transparency
and to show that the city council stands united in its belief that the public has a right to know and that there is nothing to hide.
I urge you to vote yes and ensure that the city...
time has elapsed. Mayor, that concludes the speaker cards in person. Please proceed online
as we close public comment in person. The first speaker is Douglas Spalding.
I'm a little confused by the previous speaker because of course transparency is political.
In the case of the administrative investigation concerning Councilwoman Bowen's complaints, the city does not want to release the information. Why? Because it disadvantages them in their litigation with former city manager Fran Robusteli.
In this case, transparency means the information will be used by a citizen's committee to figure out an electoral strategy in order to pass the so-called citizen's bond or parcel tax measure.
So, you know, let's be clear about the interests in the room.
Um, I actually would like to see the administrative investigation released, and I don't mind the, uh, the, the survey on revenue bond being released, uh, with, with a couple of caveats.
The first is that, you know, like a lot of surveys I do online or engagements I have with, uh, with entities, uh, you know, I always check the box.
I do not want my information shared.
And when I took the survey on the revenue measured, I assumed the information would not be shared. So I don't mind the basic information being shared, but I sure as heck would like my name and my address to be redacted. And I'm sure there's a lot of other people in the city of San Leandro who might well feel the same because we have a privacy interest.
interest. My other interest is, you know, I could be wrong, but when this came up at the last
meeting, it seemed to me that the current city manager and the current city attorney
had concerns about waiving client attorney privilege. And I would sure love to know what
their thinking is. I'd like to understand what their concerns are, because they're probably much
wiser on this than I am. And there's something I'm not considering. So maybe the deal will start
with the privilege and then be able to waive it. Thank you, sir. Your time has elapsed.
The next speakers are Gwendolyn Olson.
Hi, my name is Gwen Olson, and I'm here to ask you not to waive the attorney-client
privilege of the survey results. It's not a matter of government transparency, as Kat has said. It's
matter of preserving information for city use, not for sharing it with the mayor's wife and the
citizens bond committee for their own competing revenue measure and the so-called citizen-led
parcel tax. That's all I have to say. Thank you. The next speaker is San Leandro Chamber of Commerce.
hi everybody it's emily grego with the san l'ander chamber once again
i would like to ask that you all reconsider releasing the results of this survey i believe
that they could be helpful in determining where the community sits with any kind of a bond measure
whether it's the citizen-led bond measure or whether it's the city council's bond measure that they were potentially thinking about,
I think it would be helpful.
It would also be really helpful to determine if the city has to take the expense on doing another survey before any of these bond measures go out.
So I think that they would be really helpful.
I do understand to both of those other speakers, there's a lot of players in the room that want them for whatever their reasons are.
But survey results are helpful. They give you some answers, just like I shared earlier. This is not what the chamber says. This is what their members were saying. So I think they're helpful. I would hope that all of you reconsider and release those results. Thank you.
Thank you. Mayor, that concludes the raised hands online.
Okay, so with that, we'll close public comment.
There was something that was in the newspaper and that was repeated here in the online comments.
I'll come to you, City Manager.
We have seen a document that is the survey document itself.
In that survey document, is there any personally identifiable information in the document that was created?
I'd have to go to Deputy City Manager Eric Engelbart.
Thank you, Mayor, for the question. The document that is the subject of this action tonight, there is no, that information is not in there.
So we wouldn't know somebody's name, someone's address.
There's no personally identifiable names.
It's all aggregated information.
Correct.
And anonymized.
Thank you. And anonymous. Thank you.
And then City Manager, do you personally have any concerns about waiving the attorney-client privilege specifically on the document in question?
I do not, Mayor.
Okay. Are there any other questions or comments that people would like to raise on this topic?
Okay. So there is a motion on the table for reconsideration. Please vote.
Council member Azevedo, may we have your vote?
No.
Thank you. All votes are in.
One moment while we get our technology in line.
The motion carries with five yeses, one no, I'm sorry, two no's with Councilmember Aguilar
voting no, Azevedo voting no, Vice Mayor Bowen voting yes, Councilmember Bolt voting yes,
Council member Simon voting yes, council member Riveros Walton voting yes, and mayor Gonzalez
voting yes.
Okay, so we have had, we are now permitted to talk about waiving the attorney client
privilege because the other was just in essence giving us permission to have this discussion
to reopen the discussion.
Is there any further discussion, questions, dialogue, etc.
If not I will entertain a motion.
member Simon yes I have a question I think I heard the question to the city
manager she had any concerns with releasing the information and I heard
no but my question was for our city attorney this is a concern that I had
previously to the attorney do you have any concerns with this release of
information to an outside group which is a citizens group and I wanted to make
sure that we're not clouding the line between a city measure and the citizens
measure and don't want it coming back to us later and us being challenged that the city was involved
which should be a purely citizen committee so i just want to confirm there won't be any coming
back to us about this if we release this information please proceed city attorney
thank you councilman simon thank you mayor uh so what is on the table the motion is the approval
of the resolution that was presented to the council at the last regular meeting and it's a
limited waiver so the council would resolve that it's a limited waiver of attorney-client privilege
for the document titled revenue measure tracking survey results dated June 2024
and that that document be released to any requesting parties and that the waiver applies
only to the document and shall not be construed as a waiver of privilege regarding any other
communication so based on those parameters guardrails if you will i don't see an issue with
the release of this document as a waiver of deterrent cleaverage related specifically to
this document affecting any interference if you will or risk that the city council is
collaborating or colluding or doing anything related to connecting with or supporting or not
supporting a citizen's initiative.
This is strictly a limited waiver of a document
that the council held attorney-client privilege upon.
Okay, thank you.
Council Member Rivera-Sewalton.
I don't have a comment, but I would like to move
that we execute a limited waiver of attorney-client privilege
for the purpose of releasing the June 2024 revenue measure
tracking survey results.
Okay, I have received your motion.
Let's see if there's a second or further discussion.
Vice Mayor, please.
Yes, I have a few questions.
I appreciate that there's clarity on this council of exactly what would be released
that is limited to that survey.
we define when we say that it is is it the actual survey or is it a draft of
is a draft survey and the reason why I'm asking is because I want to understand
because I'm sure there was robust discussion about this at the meeting
that I was not at the rationale behind releasing this particular document and
and if that rationale will be applied to all similar documents going forward as it relates to
cities our city paying for surveys
so the initial interest came from myself and from councilman riveras walton to have this released
and so i'll go to you council member if you would like to address that or i'm happy to address it
please proceed um it's my understanding that there was a public records act request to get
the information and the direction from the city manager was just that she needed to get council
action to release it so i submitted a council referral item to release them so that we could
have a vote on it but it was information that in my experience and other jurisdictions has been
released via public records act request and at this particular juncture the city manager
requested council action. I just want to confirm that first part of the question what how would we
define or consider the document that we're releasing? So the question I think is is it a
draft document or a final document is that correct yes is i mean either like whatever it's called
what exactly is it so i'm going to go because it was prepared under the direction of city attorney
i'm going to go to city attorney for that question
thank you mayor first it's my understanding and i'll look to deputy city manager eric engelbar
there is only this document it's a one document set and there's no other document except that
which was subject to the privilege that was provided to the council in their role as reviewing
attorney-client privilege documents. It is a draft, though. So if the deputy city manager can clarify
that. Certainly it is. It is a draft work product that was prepared following the community survey
work that took place in June of 2024. It was a preliminary draft that was not finalized.
and ultimately as we'll recall the council ultimately directed us in july of 2024 to
cease all efforts associated with the potential revenue measure that could appear on the november
2024 ballot and as a result all that work stopped and the draft work product was never was never
finalized understood okay that's that's super helpful because let's say we did not cease at
that juncture that draft document would have been used to create the final presentation
of the survey results it's just that that was the final version that we we asked for
from the consultant i would say it was yet to be determined okay at that time what do
you mean as far as if it had i mean now we're into hypotheticals but if the city council
had not directed us to CISO efforts
and instead directed us to continue
the exploration of a revenue measure,
it's hypothetically possible that the document
could have been finalized as to whether or not
where it would have gone at that point.
It's a hypothetical.
Okay.
The reason why I'm trying to understand in this way
is because I do remember the meetings
that we had as council members
to learn about the information.
And then we had a presentation with the consultants about it.
A lot of them, you know,
I have been part now of other organizations
that do do surveys to try to understand
if there's an appetite for it.
And I have received information in staff reports
of the findings I am not sure about whether or not the actual the survey I
think the final survey may or may not have been included in it but are you
able to share I'm not sure who it goes to but is it common I have my own ideas
about whether you know it should or should not be but is it common then to
include that survey result as part of the final report of whether or not we should go forward
with a revenue measure or not. Thank you, Vice Mayor, for your question. I can share that there
are a variety of examples from various jurisdictions. I'm aware of some jurisdictions
that have released that information, comparable information, and other jurisdictions that have not.
Okay, thank you.
I'll go to Council Member Bolt next.
Second.
Is there any other discussion on this item?
Seeing none, please vote.
And to be clear, this is a motion to release,
to waive the attorney-client privilege
on this specific document.
to pass the resolution thank you council member azevedo your vote please no thank you
All votes are in. The motion passes with five yeses, two noes. Council member Vivrose Walton
voting yes, council member Aguilar voting no, council member Simon voting yes, Vice Mayor
Bowen voting yes, council member Bolt voting yes, Mayor Gonzalez voting yes, and council
member as a veto voting no. Okay so close that item we will move to item 10b which follows a
similar structure as a motion for reconsideration city attorney would you like to introduce the item.
Thank you Mayor Gonzalez and we'll have a presentation another presentation on this item.
Thank you, City Clerk.
Similar to the last item to rehash Charter Section 305H provides that the mayor has
the power provided by the charter to suspend implementation of any action taken by the council
by filing with the City Clerk within three days after such council action, a notice of
suspension thereof.
That was provided in time and is provided in the packet for this agenda item.
such suspension shall constitute a motion for reconsideration of the action taken to be voted upon by the council at its next regular meeting.
The motion was as follows to direct staff to continue to explore potential revenue measures that could appear on the November 2026 ballot,
including a consulting services agreement with Clifford Moss for outreach and survey work to consider feasibility,
that the work would be conducted under attorney-client privilege
and that the council could later decide whether to waive that privilege.
The vote was Councilmember Aguilar, yes.
Councilmember Azevedo, no.
Councilmember Bolt, abstain.
Vice Mayor Bowen, absent.
Councilmember Simon, yes.
Councilmember Viveros Walton, yes.
Mayor Gonzalez, no.
So the action this evening is, again,
to vote on the mayor's motion to reconsider that last motion that was just read at the
regular meeting of two weeks ago. If the motion to reconsider passes, then the motion directing
staff would come before this body with a need for a second to either A, continue to explore
potential revenue measures that could appear on the November 2026 ballot, including a consulting
services agreement with Clifford Moss for outreach and survey work to consider feasibility
or, and this is from staff, staff would like to know through a motion whether the council
should direct staff to cease all efforts associated with placing a revenue measure on the November
2026 ballot.
We're here to answer any questions.
We'll begin with Council Member Aguilar.
Thank you, Rich, for that explanation.
And so we're here to make a motion on either A or B.
First, we have to do item number one.
Before we get into the discussion of A or B.
So vote on the mayor's motion to reconsider.
So we would have to vote on reconsidering.
Basically, we're voting to, if we vote yes,
we're going to open up the discussion of item number two.
so voting yes constitutes voting on permission to discuss gotcha so to speak
would you agree with that characterization that's that is accurate yes that's two-step process okay
those are my questions thank you council member uh bolt please
i'd like us to take the vote on the mayor's motion to reconsider
So that would be your motion. Okay. Before we do that, I do need to take public comment. And I also want to make sure that we've got all the questions answered if there are any questions. So are there any questions before I take public comment? I'm going to come to Vice Mayor, please.
Yes, my question, and I meant to ask it for the last one just for clarity.
Mayor, if you could share the rationale as to why you made the motion to reconsider this particular vote.
So last time we were considering this notion of doing survey work under attorney-client privilege.
And based on the discussion that was transpiring, there appeared to be some confusion
about what a waiver of attorney-client privilege would look like.
And in particular, there was some discussion that suggested
that some people might have thought that it was a blanket waiver
of all privilege related to this type of work for a new revenue measure.
My interest was specifically on the survey document,
Like the document that Deputy City Manager Eric Engelbart talked about, on which we just agreed to waive privilege, I was looking for a limited waiver on that specific document.
We go into a survey, I want to be able to share that result with the public.
Any other kind of communication with city attorney, city manager amongst ourselves, it's deliberative.
I have no interest in waiving that.
and so because of that and because of the confusion that I felt was happening at the time
I said I got the vote but I'd like for us to reconsider this
seeing no other questions I'm going to go to public comment on this item if there is any
Mayor we don't have any cards from in the room but there's one hand raised on zoom
okay closing public comment in person opening up zoom
Douglas Spaulding, you're the first speaker
Thank you, my understanding is that when this item came up before it, it did not pass
it did not get the requisite for yes votes
now, given everything else that's been discussed tonight, it seems clear
the city needs money, it occurs to me
wow, what could the city raise with a revenue bond, well maybe 2.5 million
to support a rent stabilization ordinance.
The $3 million from Neptune Drive.
There's a lot of things that are in the wind.
So I have to assume when a council member votes no or abstains,
either they are not thinking along the same lines as I
that the city does need money,
or it's an automatic,
Olay, we're not going to do a revenue bond as a city. Let's just hand it over to the Citizens Committee and let them do the work.
I have my doubts about what the Citizens Committee has proposed because I don't think it can pass with the Lake Chabot Road project included.
I think to proceed with a survey on a bond measure now will get us, will garner us some new information.
I agree with Ms. Grego that the previous bond survey will also be helpful.
But, you know, we're in a slightly different time.
Trump is in office.
People are really concerned about affordability.
So I think, you know, attitudes among the electric are bound to be somewhat different.
But, you know, whether we do, in fact, go forward with the revenue measure for November 2026 ballot or not, the survey will be helpful to the city and, well, also to the citizens committee if that's the only game left in town.
So I urge you all to vote yes, reconsider it, and yes, let's pass it this time.
Thanks.
thank you mayor there are no more hands raised on zoom close public comment and come back
into the chambers for discussion i interpret council member bolt your statement as a request
to have a vote on this motion is that correct okay and i need a second on that correct
i do not need a second it's an automatic it's an automatic perfect thank you
then let's just proceed to a vote
council member azevedo your vote please no thank you
All votes are in.
The motion carries with six yes votes and one no vote.
Councilmember Riveros Walton voting yes.
Councilmember Aguilar voting yes.
Councilmember Simon voting yes.
Vice Mayor Bowen voting yes.
Council Member Bolt voting yes.
Mayor Gonzalez voting yes.
And Council Member Azevedo voting no.
At this point in time, we will then move to a discussion on the question that has been raised,
whether we should proceed with a survey work as well,
or instead to cease operations on a potential revenue measure.
And to be very precise, it's first A,
pursue a revenue measure and the work
that would be associated with that.
And if I remember correctly, city manager,
I believe there was $92,000 already budgeted before
that would be spent as the first phase of that.
Thank you.
Followed by there might be a need
for additional expenditures going forward.
But there was an initial amount,
I think the first two months of work,
if I remember correctly, had already been budgeted for.
So initially there's no incremental budget, but there could be additional monies required as we proceed.
I will start with Council Member Aguilar.
Thank you, Mayor.
I think the last item on this when we were deciding there was a caveat.
So I'd like to just move forward to continue to explore potential revenue measures that could appear on the November 26 ballot,
including a consulting service agreement with Clifford Moss for outreach and survey work to consider feasibility.
That's my motion.
Thank you.
Councilmember Bolt.
Yes, and as we were, as it was explained the last time, there are some off ramps.
So if we go forward with this feasibility study, regardless of whatever comes back, we can cease and desist the city's efforts or continue.
We're going to have another vote after we get this survey back on what we want to do.
I'm cautious of entering into the, you know, going all the way to the $400,000 after this.
So I just want to make sure I'm remembering it correctly and that we will once, if we choose to go forward, we will then get the information and we will be able to decide at that point if the city wants to continue in its path.
Additionally, lastly, there will be no attorney-client privilege put on this survey.
so there's a couple of things going on here so i'm going to separate them but thank you thank you
so i'm going to try to address the first one i believe that your description of off-ramps was
correct but i'm going to go to deputy city manager dustin to kind of guide us through this and make
sure that that part of his statement is correct that that's correct uh mayor um so what we would
do would we would go and do this work and then we would bring council the results and essentially
we'd stop each step of the way and say, do you want us to continue?
Do you want us to continue? Do you want us to continue?
And there's nothing that says that we have to do all of those things,
all of those steps, more survey work, outreach, all of these things.
At any point we could say, we're out.
And so it will offer council a number of times that we will bring items
to discuss for your all consideration,
and then we can proceed as to, you know,
whichever direction that counsel feels appropriate at the time.
Okay.
The second part of what you stated does not match the motion that I heard.
The motion that I heard did not include anything related to attorney-client privilege.
So if you seek to make a friendly amendment,
you need to discuss that with a motion maker.
So part of what I'd like to do actually, just procedurally, I want to get the procedure
and be spot on about this.
Technically, I need a second on Council Member Aguilar's motion before really getting into
discussion on the motion.
So I'm going to go next to Council Member Viveros-Walton.
Yeah, I'd like to second the motion.
Okay.
So now let's move into discussion.
would you like to continue with the discussion or just I can pass it on to somebody else?
Yeah, just briefly.
I am supportive of continuing to explore the potential revenue measures.
I think that until we know what the menu of options are,
I think we need to continue this very important work to figure out
what are the revenue options that we need to explore
and what threshold we need to meet.
I would like to, like I mentioned at the last meeting,
and this was constructive feedback,
was that I would like a deeper data dive
in the council presentation
than what was given to us in June of 2024
when this was presented to us,
because I think that that was the reason
that there was a Public Records Act request was because the data that was presented was
very kind of eagle eye superficial and I think it would just be helpful for the community
to really have a deeper understanding about what all of us are thinking in terms of city
needs and um yeah so i'll leave that there i i would like to include if the maker of the motion
is amenable to to this is to include um releasing attorney claim privilege to ensure that
we're able to release a summary of this report um so that folks um the public can understand
have a better understanding of where we all stand in terms of prioritizing city services and city
infrastructure um also but i'll i'll second the motion i'll make that suggestion to the maker of
the motion to see if he's amenable so i'll come back to council member aguilar thank you and in
In order to not indemnify the city, I would respectfully decline.
Okay.
Going back to Council Member Bolt.
Spadey just said it very eloquently, much better than I could.
So, I mean, I would be in the same position of voting no
if the community is not going to be able to hear or see what we've gained.
Okay, Vice Mayor Bowen.
Thank you, Mayor.
um um i have a i think since the very first priority setting
uh budget workshop that we attended when i was first um elected we had a very robust
presentation about how the city needed money and we were going to be where we are now and we need
more revenue and the council has always been very I think supportive of the idea
of looking for a potential revenue measure and I was supportive of it last
time and I have a really difficult time right now with the idea of spending even
the ninety two thousand dollars we've allocated to it because I know that even
ninety two thousand dollars considering how much we have to cut from our budget
is significant and at the same time I appreciate the clarity around the
exploration of potential revenue measures and then what that could look
like when we got the presentation in June or July it included things like
parks and general projects and many different things that are not just roads
that is different from the community-led bond
that is being floated out there.
And so I want, if we are going to go forward
with doing a survey,
I do not want it to simply be the same thing
that the community-led bond committee is doing.
That is their project that they are working on.
I want us to be able to find potential revenue measures
that could be creative.
And I think staff and the consultants
would know more about what is possible and I would like for us in the survey if we are going to do
one it sounds like there's an appetite for doing one that we are not just more open about the
information that we are sharing and I will say that when we talk about data collection it only
makes sense when you have experts you know how to read the data because there is a very specific
way to ask questions. Surveys are designed a particular way to understand certain information
and so I will caution people from assuming to know by looking at raw data what the answers are
that if we're going to do one that we do explore different things that the community would want.
Obviously we've talked about infrastructure needs and roads but we often hear about public safety
and we talk about the firehouse and are people willing to do that I you know
Hayward has their measure that focused their sales tax on roads and public
safety Emeryville has one on public safety and childcare which I personally
adore and wish that we could do we have again we also have to be really careful
about which potential bond revenue we support because it may or may not go
into the general fund so it may or may not actually impact these very real
needs that we have and while I really do love our roads and it is the number one thing that people
talk to me about I know that people care about roads but people also care about many other things
that will direct them in much more real ways people are going to lose or have their health
benefits tripled or quadrupled possibly in the new year people are still not on SNAP benefits even
when they need to.
And so I just want us to be really open
to the idea of what we're trying to do
and what services we're truly trying
to provide for the city.
Those are my comments for right now.
Thank you.
So come to Council Member Simon.
Yes, I support option A,
exploring our revenue measure.
And as I mentioned,
the last discussion,
looking at funding all of our needs
across the entire city so i'm fully supportive of that and i look at it as an investment
the 92 000 i think is is what we need to invest in getting the hundreds of millions of dollars
that we need to keep our city running so i'm fully supportive but i do have a question on
this release of liability of or waiver of information excuse me now the previous item
that we discussed, it sounded like there's draft information that we've decided to provide
because it didn't get presented.
So if we move forward with this and we present this new survey data, is there a need to waive
any rights since we're already presenting to the public in a council meeting?
So I will start with city manager and we can also go to legal.
Thank you, Mr. Mayor.
Councilmember Simon I needed a little bit of clarification on what you stated
the information that was that privilege was just waived on from 2024 in the
previous item was presented to council in a confidential setting through the
process when we did it in 2024 it was not presented in a council meeting so
for this time I'm not sure exactly what you that has not been decided by the
of council are directed for us to do the same yet for the future.
Okay. You just clarified that it was a closed session. Okay. Got it.
So I just, I want to have a clear record.
So it was presented in two, two threes.
So we individually in pairs or in groups of threes received the information
and then at council,
the same information was presented in a summary form.
There is a public document out there that people have seen,
which is what triggered i think the request by mr cassidy for this information so the difference
being that the version that we saw had the actual questions attached to it okay and a few other a few
other things but okay and is the request on this item the same level of detail of data as in 24
that we have agreed to release in the previous item is that what the request is so it is my
understanding from the motion that i've heard the discussion is about that but the current motion
does not include a release of that data i understand i'm just trying to understand what
the request is is that the request i'm trying to understand what data is being requested
Right now, there's not a request from the public on the new data.
We have the opportunity, and in the last meeting, I was suggesting, I think some others have suggested,
that we affirmatively just make that decision right now, that we will release the analogous document.
But the current motion does not include the release of that document.
All right. In the last meeting, I recall, correct me if I'm wrong, the city manager and city attorney wanted to wait on that until we have the data in hand before we make the decision. Is that still the same?
So I think this is where I had spoken at the beginning. I think there was some confusion about the nature of the waiver, but I will just kind of confirm with city manager.
so the release of an analogous document so whatever the survey results are in January or
February whenever they come in the form that Deputy City Manager Eric Engelbart already showed us and
that we agreed to release do you have concerns about releasing just that set of survey results
let me back up one second so at last meeting that question was not posed
can you hear me now so at the last meeting the question regarding releasing the polling data
which is similar to what was just waived I actually asked that question in the last meeting
and that was not the question so when I said last meeting that I was uncomfortable
on a waiver at that moment was because when I asked the question on what we're talking about
polling, that was made clear that that was not what we were talking about. And so I said,
because of its unknown nature of a waiver, I was uncomfortable with waiving the unknown future
related to everything attached to revenue measure work, because anything could happen. There could
be a claim against the city, all types of things could happen. And because of what is unknown,
I was uncomfortable with the unknown.
If the council's today,
if the council wants to waive what would be very similar to what was just
waived from the 2024 data, I do not have an objection today.
Okay.
City attorney.
City attorney.
I concur with the city manager.
I would just advise,
I'm advising the council that in the motion,
if that were indeed to be the case,
you would want that to be explicit that that's what the waiver would be for
specifically to data that that particular type of data and no other nothing else would be waived
okay and like my question on the previous item if we did release that type of data
you feel that there would be no clouding of the lines between city measure and citizens measure
if that information was released out?
I'll go to city attorney.
So this information, again, paid for by the city.
It belongs to the city.
I don't see an issue.
With that information becoming public, it's up to the council.
So no issue at all that I see from a liability exposure
or risk exposure for the city council to release that information
that its own consultant had prepared.
Thank you.
I think you've both spoken already is that correct okay so I'm just going to come down the line
so starting with Bolt councilmember Bolt thank you thank you for the dialogue because it's
making it clearer for me and so with that said I will go back to the motion maker and ask for
a friendly amendment to release the same information we have just released on the previous
vote taking into consideration the idea that we don't do a blanket uh attorney client privilege
waiver as the city manager has suggested we don't and i agree with that but that on this vote when
we take it, it's clear that we will have some type of presentation to the council once it's done.
And then there will be a release to the public that can use the information like we just
released for the 2024. Is that clear, Mr. Motionmaker?
Yes, that is clear. But I would respectfully decline.
Council Member Vero Swalton.
I'd like to make a substitute motion.
Do I have to withdraw my second?
Or how does that work?
As a matter of procedure.
Yes.
Withdraw the second.
Okay.
So I would like to withdraw the second.
So then it's just a motion now.
So just a motion.
Correct.
No, because there's still a motion on the floor.
So if someone seconds it, then it continues.
but if no one seconds it, it dies, correct?
That's correct.
So do I need to wait for the second is my question.
So no, not necessarily.
Do you have a motion on the floor?
If she submits, she may submit a substitute motion.
And if that gets seconded, you would discuss that, period.
That takes precedence.
Perfect, thank you.
Please proceed with your substitute motion.
Thank you.
I'd like to make a substitute motion
to continue to explore potential revenue measures
that could appear in the November 2026 ballot,
including a consulting services agreement with Clifford Moss for outreach and survey work to
consider feasibility. Additionally I would like to include that the that we release attorney
client privilege for the same level of survey data that was just released in the previous
for the June 2024 survey results. I'm going to clarify one word choice. You said release
attorney client privilege. I'd like to use the word waive attorney client privilege. Yes. Thank you.
Thank you.
So as stated in the record, that is the motion subject to that one word amendment.
Is there a second for that?
I'm going to go to Council Member Bolt.
Second.
So we've got a motion as read into the record with a second.
Is there any further discussion at this time?
Okay.
Vice Mayor, please.
Yes.
I'm not sure who this question goes to, but going back to my previous comments,
Can you clarify or confirm what we mean in the scope of work when we say continue to explore potential revenue measures?
So I will start with city manager, which I'm going to go to deputy city manager.
Okay, so we will start with city manager on this item, on that question.
Thank you, Mr. Mayor. Thank you, Vice Mayor.
So in the packet, there is the presentation that was provided on December 1st.
And I'm looking now at what is slide four, and it talks about community outreach and says provide community information, distribute annual report and community listening sessions.
And then it also says survey work, determine viability, determine feasibility levels, community prioritization of use of funds and the type of measure.
And that's what, once we do the survey, we would come back to council with the information that we've garnered from that work and have a decision point on whether the council would like us to continue and put a measure on and a type of measure, continue with a measure and the type of measure to put on the November 2026 ballot or to cease the work in that effort.
Okay, so it really is a repetition of the previous survey again.
Correct.
The only difference is because of the timing.
So staff brought this to council in June with the budget, but we did not get direction at the time.
And so what I stated to the council at that time is that we didn't have to, the council didn't have to make a final decision that day.
I could come back to the council once we have closure or close enough closure on the fiscal year 2025 budget information.
And we did that. And so we came on December 1st with that information.
And because of the timing, because basically six months we did not have, there is one step that won't be included.
and that would be a second tracking poll that was included in the previous step that wouldn't be included.
So there wouldn't be two different steps of polling.
Okay.
So I'm just going to summarize that back so that I understand.
We received the information regarding the survey results,
and the council made a decision at that time, given the information that we had to,
Did we make a decision on whether or not to continue or we said we just wanted to consider continuing it once we actually got the budget?
Which time? I'm confused.
Why we saw it again last month.
So why you saw it again?
The question of whether or not we continue. Why did that come back again?
Because when we came to council in June with the budget, council did not decide at that point to fund any of the work related to a revenue measure.
And so at that point, I said, OK, I can come back later once we know how we close fiscal year 25,
because we thought there may be if there's money left over, then we could use that money for this purpose.
Well, the December 1st meeting, 2025, finance director Nicole Gonzalez, part of the presentation, showed there was no money left over.
And so this truncated work that we could do now, which there's still time to do work for a November 2026 revenue measure, we would not need additional dollars at this time.
But if this work was to continue, let's say after we do the survey and it looks like it could be successful, the slide seven of the last slide eight of the last presentation shows that the estimated cost could be somewhere between 300 to $600,000 for the total revenue measure, including the actual ballot.
And that last figure we do not have budgeted.
That is correct.
Okay.
But that's not a decision point that council has to make today.
Right.
Right.
Okay.
Okay.
Seeing no further questions or comments, I will be voting yes on this measure.
With that, please vote.
We already talked about it.
Yeah.
So is there further discussion?
Councilmember Aguilar.
Thank you, Mayor.
I would support the motion with item A, just with the substitute motion that's been made.
It's not that I do support a revenue measure, just not the motion as is.
Thank you.
Vice Mayor, another piece, please.
Yes, I just wanted to, I am having a really difficult time with spending the $92,000 that we have budgeted for it on this,
knowing that we don't have the money to then spend on next steps and to ask the
community to potentially pay for 66% or 67% of the community to pay for
something during the current landscape that we live in it just is and again I
just have it yeah I'm just I just wanted that is I'm having a really difficult
time trying to square that away.
So one thing that we may want to consider
is that certain revenue measures would require 66 and 2
thirds, but others would only require 50%.
So for instance, a utility user's tax
would only require 50% or there's
any of a variety of things.
And that's not intended to prejudice what we would consider,
but just to realize that it depends on the nature of the tax.
okay so with that let us vote mayor if I may yes before we vote for the record
if I could please ask the seconder of the motion of the substitute motion the
seconder is councilmore bold thank you thank you it's good to have a clear
record and I appreciate that. Council member Azevedo may we have your vote? No. Thank you.
All votes are in.
The motion carries with four yes votes and three no votes.
Councilmember Bolt voting yes.
Mayor Gonzalez voting yes.
Councilmember Viveros Walton voting yes.
Councilmember Aguilar voting no.
Councilmember Simon voting yes.
Vice Mayor Bowen voting no and Councilmember Azevedo voting no.
So at this point in time, before moving to item 10C, I would like for a motion to extend our time.
I will begin with Councilmember Simon, is that correct?
there you go if you could please proceed i'd like to motion to extend our time to 10 15.
okay 10 15 council member if we go to swalton second second so please vote
council member azevedo your vote please
aye
thank you
all votes are in the motion passes unanimously with council members bowen aguilar simon
rose walton bold azevedo voting yes and mayor gonzalez voting yes
at this point in time council members simon would you please proceed
Sorry about that.
Please proceed.
Thank you.
Yes, I'm moving this item forward
or would like to.
The objective of this item
is to help our council move forward
in January 2026
in a positive direction.
I'm requesting that we record video,
including audio of our closed sessions,
which will improve accuracy and validity of internal investigations.
I propose that the recordings be held by the city attorney and used during investigations,
as there will be no dispute on what is said in those meetings.
So I'd like to make a motion directing staff to video record,
including audio of all closed session meetings held by the city attorney for use in internal investigations.
Okay, hold on just a second.
Okay, so do I have a second for that motion?
Council Member Aguilar.
Thank you, Mayor Gonzalez, I'll second.
Okay, so I have a motion and a second.
Are there any questions for the maker of the motion?
Council Member Votus Walton.
I'm interested in learning if you have identified any revenue to fund this. There is a significant data component to this where we will need to store this data as well as enhanced security, how that would change our contract with our city attorney.
I think that this is a significant budget item that is not necessarily just a motion to direct city staff to implement without having appropriate idea of how much money it would take and staff time and other unintended consequences like having to,
that is not currently in our contract with our city attorney is to hold these conversations
especially video recorded since all of our meeting notes are recorded in accordance to the law
i also have a question to the chair to address to whoever um is there a uh is this a best practice
is this something that other city councils have done?
What are, what does the landscape look like
in terms of video recording closed sessions?
And what is, is there a risk to having that stored somewhere?
Thank you for the question.
We'll start with city manager about to explore her awareness.
Then I'll come to city attorney to explore his awareness.
Thank you, Mr. Mayor.
Thank you, Councilman Baris-Walton.
And I'm not aware of councils that video record, but I have also not done any research on the topic as well.
City attorney, please.
Thank you, Mayor.
I'm only aware of one entity, which is in Southern California, that does this procedure that's described in California Government Code Section 54957.2.
it's the Metropolitan Water District of Southern California
which is a multi-jurisdictional
not even a joint powers agency
it's actually a multi-jurisdictional body
of water agencies throughout Southern California
and they follow this procedure
I'm not aware of any other city
in Northern California
anecdotally
otherwise
and would have to do some research to find out
please proceed apologies for taking myself out of the queue
so the way that this is put on the agenda it's unclear to me how it was just put on the agenda
and not through the regular referral process that we go through
in terms of having it be put on the city council priority session
in, I believe it's March.
I'm just wondering why this went straight to the agenda
as opposed to going through that process.
City manager, please proceed.
Thank you, Mr. Mayor.
Thank you, Council Member Veras-Walton.
So the referral process in the handbook refers to work
that would be related to staff and capacity.
This item as it's written, unless the council was to elaborate and turn into something else, doesn't take much more work from staff.
We already attend council meetings.
We already have the technology in the room.
I'm sorry.
We already attend closed session meetings.
We already have the technology in the room for the closed session meetings if the council was to direct to record the meetings.
And storage, I spoke with our chief technology officer, there's capability to store.
It's very basic for what we have right now.
If it grows into something else, that could be somewhere else.
But staff is currently using capacity to attend closed session meetings and prepare for closed session meetings.
Okay.
So how I'm concerned about data safety and our ability to maintain these records safe.
what sort of infrastructure would we need to ensure that these if the council were to pass this
that we would be able to maintain the privacy of these records and have them not be like it were
hacked or something like what are some security measures that would need to be put in place
So we will go to Director Siner for that.
Well, we currently have our Microsoft 365 environment, which allows for data storage.
And there is security.
It's in the government cloud, which has a level of security that we're comfortable with.
And we could set up privileges so that only certain individuals could access that data.
It would have to be managed by the IT department.
So certain employees within the IT department would have to have access.
There was some cost put in there if we want to do something where employees in the IT department do not have access and only the attorney has access.
We'd have to come up with some other process, which is why there was some some cost included.
We'd have to work that out. We and we haven't fully investigated that those costs yet.
Thank you.
Those are all my questions.
I cede my time back to the chair.
Thank you.
I will go next to Vice Mayor.
Thank you, Mayor.
I'm not sure if this was asked in the previous questions, but this question is to the city attorney.
are there
while one water
district of the
400 and something cities
I don't even know how many districts that they have
I imagine many many more
so most don't do it is there a
legal concern to doing so
what is the exposure
of recording
these meetings
City Attorney
Thank you Mayor
I think the exposure is
the immediate risk exposure,
I think as the IT director has described,
is mitigatable,
just based on how he describes that.
From a legal risk exposure,
certainly any record that is produced in closed session
could become discoverable.
and that includes a recording.
I think that's just the main legal risk
that the council would want to understand,
should understand in a way.
And the way that our council is structured
and the way that we govern,
could at any point a group of four council members
vote to waive privilege on a recording
or any recording or all recordings?
So the minute book is not a public record.
And according to the Brown Act,
it's not a public record subject to inspection
under the Public Records Act
and shall be kept confidential.
So that's sort of the first layer
that it's not a public record.
So it wouldn't be subject to disclosure
to a public record direct request.
The minute book though, again,
would only be available to the city council
or if a violation of the Brown Act is alleged to have occurred at a closed session, then to the court.
In that context, then, it would go to the court, and it's my understanding that those proceedings,
there could be arguments that they could be reviewed in chambers based on motions,
So there would be some opportunity for the council to keep the record from being disclosed.
So there are limited instances.
But, like I said, there are still instances in these contexts for those recordings to be exposed.
Could the council vote to release the wave privilege of the recordings, though?
it is possible for the council to do so?
So it's only available to the council, first of all.
And it can only be released to the Alameda County Superior Court
or any Superior Court if a violation of the Brown Act is alleged.
So no, I would argue that it is not able to be released
by a majority of the council.
However, that's not to say that it couldn't be
exposed in some way or in those limited instances.
It's possible, very limited instance,
that it could be released.
So no, to answer your question,
it's not possible to be released in that way.
Okay.
I have a few other questions.
The follow-up to that is,
that is the first time about anything
that we've ever discussed on the council
that I've heard that the Council of Four
could not do something.
So I'll follow up with you to try to understand
exactly what that means.
The other question I have is,
does the council member, a few questions,
does the council member have to
consent to being recorded?
Please proceed.
That's why I believe
there's a requirement that it be
made my ordinance or resolution.
So that
is the vote of the majority
of the council would then
be the
sort of consent.
So the individual does not have to consent.
The vote will work as, okay.
Correct.
What would happen to,
so this, let's say we record,
this council would have access to it.
Next year we potentially may have
another new council member.
Do they have access to the former,
the videos previously recorded?
or what if you leave the council,
do you still have access to that recording?
To your first question, yes.
A newly elected council member would have access to all recordings.
To your second question, no,
because then they would not be a member of the council,
would not be permitted to be in closed session.
Okay, and then just the last question I have is to the motion maker.
What exactly is the purpose of, and again, I wasn't, I don't know,
it's not clear to me.
what is the purpose of making,
of recording closed session meetings?
If you would please proceed.
Sorry, my fault over here, thank you.
Yeah, the purpose is mentioned in my opening statement
is to improve the accuracy and validity
of internal investigations.
The recordings, as I'm recommending, would be held by the city attorney.
And I'm not recommending that we all have access to it as council members.
I'm not looking for that.
I just would like some record to be held if there is an investigation,
because we've had two of them in the past two years.
And I think it would be extremely useful to confirm exactly what was said.
And it would alleviate a lot of the issues that we've been going through for two years
if there was a simple recording.
and we have the ability to do it.
We've heard that it's a cost effective means.
We've heard another water district does it.
So I see it as helping us as a council move forward
in a positive direction in 2026.
I'm going to go next to council member Bolt.
Yes, actually it cleared it up as I recalled with this.
recalled with this it was an audio video i know it's saying video on here but it's audio video
recording right um that it would be retained by the the city attorney and that no council member
can just go hey let me go review that in the past that's correct please proceed
so
the minute book and the recording that would have created the minute book so we're really talking
about a recording that would assist a clerk or other officer or myself or an employee to create
a minute book of topics discussed and decisions made at closed sessions.
According to Council Member Simon, yes, it would be the city attorney who would be retaining
the recordings.
And so I think that's a clarification that's worth mentioning here that certainly there
is an option that the IT director just described because I am within the city system as the city
attorney as well and there'd be some sort of way to limit access to just the city attorney's office.
Another option of course is that we retain it completely separate outside of the city
as well but as it stands the way that the technology is set up is that it's just for
the city. We'd have to think of a new way for us to retain that recording. It could be quite simple
with just a digital recorder.
To your other question,
the law provides that the minute book
would be available to the whole city council.
And connected to that minute book would be a recording,
if there was a recording of that particular meeting
to create the minute.
There's no reason why that minute,
I mean, if the council directed it, we would destroy the recording, but you'd still have the minute book.
I'm not suggesting that you do that, but that's absolutely a council choice.
The minute book would not, it would be a retained document.
That's what a future council member would be able to review.
If there was a recording attached to that minute book and the council says keep all the recordings, then they would be able to review that as well.
so at this this is just for my clarification that's kind of left field now but
can i right now as a council member can i come to you and say hey
i want to review the closed session uh minutes from 2023 can i do that absolutely
oh get ready buddy so who keeps those minutes there are no minutes though we're not talking
about there are this that's what this minute book would be about is that the council will decide
oh so we don't even have anything we do not oh this is great so going from a new procedure
new practice got it and just uh we have run our time so i'm looking for a motion for extending
and i'm not quite sure some people are on cue to discuss so if you could just raise your hand for
the sake of okay so I'm going to Council Member Bolt are you looking to extend yes so I hear a
request motion from Bolt to extend do I have a second so I've got a second from Council Member
Aguilar but what was to I've got an 11 o'clock is that what you are requesting Council Member
Bolt so I've got 11 o'clock motion of extending to 11 o'clock by Council Member Bolt with a second
by Councilmember Aguilar. Please vote. Councilmember Aguilar, I'm sorry, Councilmember
Azevedo, may we have your vote? Aye. Thank you. All votes are in and the motion carries
with six yes votes, one no vote.
Council Member Favreos-Walton voting no.
Council Member Simon voting yes.
Mayor Gonzalez voting yes.
Council Member Aguilar voting yes.
Council Member Bolt voting yes.
Vice Mayor Bowen voting yes.
And Council Member Azevedo voting yes.
So I'm going to go to Council Member Simon
just to clarify a little bit about what you are proposing
because I've got some questions.
I just want to make sure we're all on the same page.
in what you are requesting are you requesting that these video recordings be kept in the city
of san leandro by the it staff with them having ultimate control are you asking that they be
stored somewhere else or do you even is that even relevant to what you're requesting
you're indifferent to it so i'm going to turn your mic on there thank you whatever is most
cost effective just as long as the city attorney has the primary access. Perfect. And then the
second question, is it your intention that any city council member can access those records at
any time or did you have a different intention? My original intention was for only the city
attorney to have access. However, if that is not allowable by law, if every council member has to
have access then that's what I'm requesting my goal is to have a video and audio recording
to document what was said in those meetings thank you for the clarification I will come to city
attorney to explore whether it is legally permissible to let city attorney be the only
person that has access so that doesn't seem to be any restriction in this particular section
so that is possible.
Thank you.
I have next in queue
Vice Mayor. Is that correct?
Okay, so I will come back or come to you.
Yes, thank you
Council Member Simon for clarifying
the purpose of it. If I can just
you said
that the reason that
you wanted to record this
was so that we
so that it could be accessed for the
purpose of an investigation.
And my question is, is that access to file a complaint for an investigation or only for an investigator to confirm during an investigation?
So through the chair to Councilmember Simon.
perhaps sahidi attorney could you kind of interpret or clarify vice mayor's so is there
a difference i'm not sure yeah so i'm gonna i'm gonna see if we agree in our understanding
it's my understanding um that vice mayor is asking would these documents be accessible this
these recordings would they be accessible for purposes of exploring to see whether you want to
initiate an investigation or a litigation or would there use be limited to there is an existing
matter that's being investigated and the investigator go to a record to confirm
representations that were made by council members about what happened in closed session that's why
I interpret it.
Feel free to elaborate if that's,
is that a good start?
That is a good start.
And to triple confirm that the motion
is to record for the sole purpose
of investigative confirmation.
May I ask that?
Yeah.
My intention was for the investigation,
internal investigation process.
So there's a record.
similar to what we've been through for two years we've had an investigator
yet there's no record of what occurred in closed session okay so i'm going to come to
city attorney to discuss any legal implications limitations etc so first uh in the minute book
which the recording would be connected to the minute book you can't have the recording separate
from a minute book shall be kept confidential.
The minute book shall be available only to members of the city council,
or if a violation of the Brown Act is alleged to have occurred at a closed session,
then to the Alameda County Superior Court.
Those are the only two instances available to a member,
only to members of the legislative body.
It wouldn't be available to an investigator.
can we modify that no this is what the brown access so you can only do what you can as stated
in the brown act and can you repeat that one more time the minute book shall be available only to
members of the legislative body or if a violation of this chapter is alleged to have occurred at a
a closed session to a court of general jurisdiction wherein the local agency lies.
That's the Alameda County Superior Court.
So the first one you said available to members of the council.
Correct.
So that's us.
Correct.
Okay.
But I thought I heard five, ten minutes ago that we could direct that only the city attorney
would have access to this information.
well that's because it says uh you could it's required that the city council by ordinance or
resolution designate a clerk or other officer or employee of the city who shall then attend each
closed session of the city council and keep and enter in a minute book a record of topics discussed
and decisions made at the meeting so quite naturally there needs to be a person it could be
me as your motion is me it could be an employee it could be a clerk so we could i could designate
you that was my initial yes yes so that's my intention that the city attorney keeps a record
of this document right but the uses to answer your question about the use that's all i needed to
i wanted to clarify okay and to reiterate or to confirm once more time the uses are
the minute book shall be available only to members of the city council or if a violation
of the brown act is alleged to have occurred at a closed session to a court of general jurisdiction
wherein the local agency lies okay so if it's available to you or it's available to council
members during investigations we are interviewed about what happens in a closed session meeting
so if we have a recording of what happened in the closed session meeting then it's definite
of what occurred.
Well, I would want to make sure you were clear
that that may be a record,
but the council would still have to vote
to authorize information to be shared
with a person who was not authorized
to be in closed session.
That's a separate Brown Act requirement.
Which is you, the city attorney?
No, that would be the vote of the council.
Investigator.
Okay, that's fine.
That's fine.
That would make sense
since they're already investigating
the council members anyway,
then why not let them see the record of what actually happened?
So what motion do you need from me to proceed with?
I just want to make sure it's clear.
It's not that you would be able to share the record, the minute book,
or the recordings with anyone else.
Only the council members.
It's only available to the council members.
But if the council voted to release it to the investigator,
we would have that option to do that?
I'm saying no.
that is not an option that's provided in the Brown Act okay so let's explore this
a little bit because I want to make sure that we're they're all saying the same
thing we as a council can vote to share
closed session information with our agent.
An attorney that we hire, an investigator that we hire.
I believe that's correct.
That is correct.
So we, as a body, can vote to share information with someone who has fidelity to us.
They have an obligation to us.
I don't know what the right legal term is.
Well, it's share with someone who was not in the closed session.
Share information that you received that was not received by them in closed session.
But they have to be our agent.
We just can't share it with someone in the public so that the public knows.
No, I think that's a possibility.
Information that's shared in closed session, the council has the ability to waive that confidentiality.
Are you saying that these videos could just be waived and shown to the public?
Not the videos, though.
The videos shall only be available to members of the legislative body, to the council,
or if a violation of the chapter is alleged to have occurred at a closed session to the court.
So we could talk to the public?
If we voted, four people voted yes,
we could choose to talk to the public about what happened in closed session?
That's correct.
but they couldn't see the minute book they couldn't see the videos they couldn't see any of that
the videos are connected to the minute book if the council says keep the videos
the this section of brown act says that the audio recording or the video recording
is used by the clerk person whoever that person is to prepare the minute book
so councilmember simon um i think there's there are going to be a lot of questions
are you open to this going to the rules committee
well let's see it sounds like this is defined by the brown act the recording of the meetings
it's set correct city attorney the minute book who has access to the minute book is defined by
the brown act and the video if yes correct and there's no around that that's just the way it is
okay but you can keep a record of it that's correct okay uh so no i would like to take a vote on this
a motion to video and audio record the meetings with the minute book and the video recording
that is stored per the Brown Act.
Okay.
At this point in time, I will come to Council Mariveros-Walton.
Thank you.
I'll be brief.
I just don't think that the intention of the item before us
does not meet the need of what you said you wanted it to be.
It can't not be used for investigations. If we were to talk to an investigator, they cannot view that footage. They would still have to rely on a council member account of what happened if we waive privilege.
so we are still in the same situation it would not address the issue that you're pointing to
because the investigator cannot see those recordings cannot see the meeting book the
minute book they would still rely on our account of what happened in that room so it doesn't meet
the need it does not address the issue that you're bringing up and I just and the risk of
having these recordings and having them be open for discovery in a variety of litigation issues
I just the risk is too large for a really specific need that addresses your personal need I don't see
this problem in the context of future councils and I'm really hesitant to have
such an important policy decision about the way that we conduct our litigation and our
discussions of that be recorded and and have them be out there i i i know that the intention is for
them not to go public or for them not to be hacked but it happens and it could put us in serious risk
and i just don't think that what the maker of the motion is aiming to solve with this proposal it
doesn't solve it. We're in the same position that we were because they cannot view the footage. They
would still rely on our accounts of what happened in that room. I do not support the motion and I
will cede my time back to the chair. So I really do want to confirm something here because
maybe I'm tired but I'm not hearing the same the same answers. So let's just be super super super
super clear. When we as a body conduct an investigation, an internal investigation,
I shouldn't say internal, we hire an outside person, so an external investigation
of something that happened in closed session. We have in the past taken a vote to waive
the privilege
so that the investigator
can hear from individuals
you're saying that that waiver
is different than
waiving access to an actual recording
is that correct
and that's because the government
code forbids
the sharing of either written minutes
or recordings of those meetings.
Correct.
Correct.
Okay, I'm going to come back to Councilmember Simon
and then Vice Mayor.
Yeah, just to clarify, this is not for my personal
gain, my personal anything. This is to protect the city.
as a whole. This is to save us from years of investigations. This is to get to the heart of
the facts, the heart of the information. And if each of us council members can watch the video,
which we can, per the Brown Act, we can each watch this video. The investigator can ask
those questions and we will have watched that video five minutes ahead of time because we have
be access to watch that video.
And there shouldn't be any conflict amongst what
the people are saying, what the council members saying.
We're having massive conflict now in what council members
are saying, which is causing us to go on
for a long period of time.
So I would like to call the question this item
and go for a vote.
so is there a second on calling the question
so we've got a motion to call the question is there a second on that council member aguilar
I'll second. Okay. So it's not debatable. So this is a vote to call the question, meaning
if you vote yes, we then proceed to a vote immediately without any further discussion.
Please vote.
Council member Azevedo, may we have your vote? Aye. Thank you.
All votes are in. The motion carries with three yes, sorry, four yes votes, three no
votes. Vice Mayor Bowen voting no. Councilmember Aguilar voting yes. Councilmember Bolt voting
yes. Councilmember Simon voting yes. Mayor Gonzalez voting no. Councilmember Viveros
walton voting no and council member azevedo voting yes
okay so at this point in time we will vote on the motion that will have video recording so to be
yes so we will vote on the motion that was made by council member simon
and seconded by council member aguilar
council member azevedo your vote aye thank you
all votes are in the motion carries with three yeses and three noes council member bolt
sorry four yeses council member bolt voting yes mayor gonzalez voting no council member aguilar
voting yes council member Simon voting yes vice mayor Bowen voting no council
member riveros Walton voting no and council member Azevedo voting yes
so what we will do next is we will have a resolution at a future meeting that
confirms the precise direction that has been given so that it's in written form
and then we'll vote on that.
Vice Mayor, are you set?
Yeah, no, I wanted to respond, but we don't want to respond.
At this point in time, we will move to item 12.
Do we have any announcements?
Okay, seeing no announcements,
I'd like to...
Is it the Council Member announcement?
Yes.
I don't have...
So were any requests submitted to you for Item 11?
So thank you.
So moving to Item Number 12.
Any announcements?
Council Member Aylar and then Vice Mayor.
Oh, thank you, Mayor.
Sorry.
On December 10th, I attended the 1,142nd meeting of the Alameda County Mosquito Abatement.
We have new officers, Kashif Kaadri from Dublin as the president.
John Bowders will be vice president and John Zachlich will be the secretary.
We honored President Tyler Savage with accommodation for his service as president.
We completed our annual comprehensive financial report audited by Mays and Associates,
and we were awarded the Government Financial Officers Association Award.
There is no West Nile virus to report in Alameda County.
No new detection of invasive Aedes aegypti.
And there were three cases reported for West Nile virus,
one in Merced County and two in Orange County.
So we have the Victory Institute.
I attended the Victory Institute from December 4th through 6th.
I paid for my airfare and accommodations in the city.
paid for the entry fee into the conference.
I attended the Building Futures panel with a housing support system for LGBTQ youth in
all residents.
We talked about the foundation providing housing support for DC's LGBTQ youth with the Alston
Foundation.
We also discussed psychological safety and trauma, transportation, economic mobility,
housing and homelessness. Every year, the Victory Institute has over 700 LGBT elected leaders that
are gathered together every year. We also had a special guest. President Joe Biden
accepted an award. He signed the Respect for Marriage Act, which required the states to
recognize same marriage from other states. And what President Biden had mentioned, he said that,
you know, he got himself into a bit of trouble with his speech. And he said that there are a lot
of young people sitting alone as I speak, scrolling through social media, wondering whether
they will ever truly be accepted for who they are. He said that you are heard, you belong. And,
you know, what is currently happening in the community, especially with the Republicans
and their anti-bills with regards to transgender community.
We sat there to encourage one another to get out and run for office and to get involved and to stand up and speak out.
But I also just wanted to recognize that after we had voted, I had looked over to Vice Mayor Bowen,
and the candor reaction of the facial remark was not appreciated, Vice Mayor.
and I just wanted to call that out.
Thank you.
Those are my comments.
Thank you.
So coming to Vice Mayor Bowen.
Sure.
I'll respond to that
and then I'll give my report.
I actually didn't appreciate
the candor of your expression to me
and how I interpreted it.
So we can both feel that way.
One of the things that I wanted to share
is that I want to encourage the community
to continue to donate
to the San Leandro Food Pantry,
especially for recurring donations.
They are in need.
They are volunteer run, but they do have operational costs
that they do need to fund every month.
Alameda County Food Bank is also continuing
to look for donations and to work with your neighbors
to become grocery buddies, especially through the schools
or through any of the mobile home parks.
I'm working through the organizers there.
I'd like to share that I attended
the National League of Cities Conference
on November 19th, the 22nd, and happy to report
that I was elected as the president
of the Asian Pacific American Municipal Officers for 2026.
And looking forward to working with leaders
across the country to promote the ANHPI community
as well as leadership so that API leaders
and their community members are seen and heard
and respected in their communities.
I also attended the East Bay Division League
of California Cities Board Director Strategy Meeting
on December 8th.
and we went over our legislative and the discussion of the 2025 legislation about measures as a review of 2026 priorities.
Of note that I wanted to share that is available as a recording on the Cal City's website are changes to the Brown Act,
which will impact our city, and I would like to give a shout out for the city of San Leandro for being proactive about translation services and accessibility,
because that is a significant piece of that.
And I imagine that in the new year
or at the next time when we talk about the Brown Act,
we would go over those things
because I know there is a vast amount of changes
that are happening.
And then the last thing that I wanted to share
from November that has been pushed back,
council received an email from Serena Flores,
an eighth grader at Bancroft Middle School.
And she followed up with me in emailing a concern
about vaping both at the school as well in the community and asked for help and not just to talk
about it and as part of that she wanted council members to say out loud that teen vaping is a big
problem and shared a message that she wanted me to pass along to the council as well as to the
community and so I wanted to share that now a lot of kids have started to vape at school way more
than you can imagine most students get vapes from other students who buy from stores in San Leandro
or contact people, adults, strangers on Instagram.
Our administrators and staff seem really blind to this
and don't do a really good job of handling it.
I'm not sure who to talk to about this,
and I really want to express what is happening.
We must stop stores from selling vapes to minors,
educate children on the dangers of vaping,
and openly acknowledge that teen vaping
is a significant problem.
I want to share that along to the rest of the council
because I think it is really brave of her
to go for or share her message and to advocate for it.
Thank you both. Coming now to Councilmember Simon.
Yes, I wanted to announce and make a comment on an issue of concern.
I wanted to thank staff for staying here to 11 o'clock on a regular basis.
Professional, holding your composure.
Even though you're tired, your facts are still there.
And it's, I mean, you have to experience a lot of uncomfortableness up here.
And each of you are all professional.
and you carry yourselves very well.
So I just want to thank you.
You guys are doing, and gals, you're doing great.
Thank you.
Okay, so just very quickly,
I do want to highlight that there have been
so many different community events,
great things happening in the city
that are bringing and building community.
Whether it was our Cookies with the Cops
that happened here,
whether it's a wonderful night celebration
that occurred downtown.
The Chamber of Commerce joined with
two other chambers of commerce for a big mixer
that took place. Literally, it was like 200 people attended. In the city of San Leandro,
we held a senior prom led by the Lend-A-Hand Foundation to just bring seniors together at
our senior center. Again, a couple, about 200 people were present for that. I do want to be
very grateful for all the Europe interns that the city has had over the last three years.
interns have done an amazing job of bringing new perspective to the city and had the opportunity to
spend lunch with them last week or the week before. Washington Manor pickleball family,
I posted about this online. One of the most interesting things that came out of their
celebration for the holidays, they did a little toy drive, but it was just fascinating to hear
them talk about the community that's been built. Who would have thought that a couple of nets and
some painted lines would turn into family and people that are coming from around the area not
just the city of san leandro and they know each other and they care for each other when people
are sick they check in with each other also i just want to let you know that i'm out there
carrying the flag spent some time with senator grayson at his holiday party spent time with
supervisor tam at her toy drive or the toy giveaway that that happened here in san leandro
and with the firefighters at Station 9 for their toy drives.
Lots of things are happening,
and it just feels very uplifting
when we think about all the people that are working together
to make positive change occur.
I do want to close this meeting in honor of Isabel Pulverosa.
Isabel was a longtime community activist,
served on the San Lorenzo Unified School District,
very active in the manor for many years
most recently I think was involved here at
the Altamira House
at a number of Altamira House events in the lake
so I'd like to take just a few seconds here in memory
of Isabel Bolvarosa before we close
and so with that
It is 10.50 and we are adjourned.
Discussion Breakdown
Summary
San Leandro City Council Meeting (December 15)
The San Leandro City Council met on December 15 beginning at 7:00 PM (adjourned 10:50 PM) with Councilmember Azevedo initially absent (later joined by Zoom during the meeting). Major actions included unanimous approval of the Consent Calendar, extensive public testimony and council direction on a draft residential rent stabilization ordinance and program budget, and two mayor-initiated reconsiderations of prior council actions: one resulting in release of a June 2024 revenue-measure tracking survey and another authorizing continued exploration of a potential November 2026 revenue measure. The Council also approved a motion to record closed sessions (video + audio) under Brown Act procedures.
Consent Calendar
- Approved the full Consent Calendar with 6-0 vote (Councilmember Azevedo absent). (Motion: Aguilar; Second: Simon.)
- Public comment on consent included:
- A speaker supported item 5F for nearly $2.2 million in homelessness grants.
- The same speaker criticized other spending items (including golf course payments, police equipment purchases, and an accounting services agreement), urging budget scrutiny.
Public Comments & Testimony (Non-Agenda)
- Traffic safety / intersection design (Cascade & Tudor Rd.)
- Nawal Rashid and Mason Rashid (property owners/residents) described repeated crashes into their property, including a Nov. 30 incident that caused a 2024 Subaru to be totaled and home/gate damage. Mason Rashid stated they sustained $60,000 in damage and reported this was the fourth accident in less than 2.5 years, requesting traffic mitigation up to and including intersection redesign.
- Mayor indicated Public Works (Sheila Marquisis) would follow up.
- Cold case reward visibility
- Rob Rich noted the 11th anniversary of Joel Ramirez’s unsolved murder, thanked the Council for raising cold-case rewards to $150,000 (for Joel Ramirez and others), and requested the City periodically publicize the rewards to help generate leads.
- Council process / restorative request
- Douglas Spalding urged the Council to pursue a private facilitated restorative process to address perceived dysfunction and distrust.
Discussion Items
Proposed Rent Stabilization Program Budget & Draft Residential Rent Stabilization Ordinance
Presentation: Community Development Director Tom Liao (with staff support including Assistant Director Avalon Schultz; legal counsel also answered questions).
Program/budget context and assumptions
- Staff stated the City faces an ongoing General Fund deficit and departments are preparing for a $15 million mid-cycle budget cut for FY 2026–27.
- Staff proposed a special revenue fund for the rent program and a General Fund loan to launch the combined program until fees fully support operations.
- Program options discussed:
- Enhanced enforcement (staff focus): combines rent registry + rent stabilization with 6 FTE total (including 2 already approved for rent registry) and an estimated General Fund loan of ~$1.3 million to ~$2.2 million (range described as preliminary and subject to fee-study refinement).
- Basic enforcement: about 4 FTE, with a narrower registry focused primarily on fully regulated units.
- Passive enforcement: relies on 2 FTE (the rent registry staff), described as more complaint-based, and would require repealing rent registry (not staff’s recommended direction).
- Estimated regulated-unit universe (staff estimates):
- Fully regulated units: generally stated as over 7,000.
- Fully + partially regulated universe: estimated ~9,000–10,000 units.
- Staff described a preliminary fee concept (to be finalized in a forthcoming fee study):
- Fully regulated: $250–$300 per unit.
- Partially regulated: $125–$175 per unit.
- Staff explained loan repayment could take 3 to 6 years, depending on fee levels, compliance, and enforcement intensity, including late penalties and liens/special assessments.
Draft ordinance changes and timeline (as presented)
- Council’s prior October direction was reflected in draft changes, including:
- Removing capital improvement pass-through provisions.
- No banking of unused increases.
- No exemptions for small rental properties (per October guidance).
- Maintain exemption for “golden duplexes” (duplex where owner lives in one unit).
- Proposed implementation dates (staff proposal):
- Rent registry effective July (year implied as next cycle).
- Rent stabilization implementation proposed January 1, 2027, with base year 2026.
- Staff cited administrative practicality and existing protections until then (including AB 1482: 5% + CPI up to 10%, plus local tenant relocation ordinance and the Rent Review Board).
- CPI analysis: staff stated that over 30 years, 65% of CPI would exceed 3% only once (noted as around 2022 following COVID), suggesting the CPI-based limit would often be below a 3% cap.
Public testimony on rent stabilization (positions expressed)
- Speakers supporting stronger rent stabilization emphasized:
- Rent stabilization as good public policy and supportive of stable neighborhoods (Carol Haberkoss reading a statement for renter Richard Becker, a 45-year San Leandro renter).
- Opposition to delaying implementation to 2027; concerns that setting a future base date could incentivize rent spikes in 2026 (Douglas Spalding, Ginny Madsen, Emily Rich, others).
- Requests for 3% cap and 2025 base year; and to keep robust enforcement/registry rather than cheaper models.
- Speakers opposing rent stabilization highlighted:
- Rising operating costs exceeding CPI (e.g., one housing provider cited increases over 2022–2024: insurance +80%, water +38%, PG&E +33%, trash/recycling +45%).
- Concerns rent caps would reduce reinvestment, housing supply, and discourage development; cited comparisons to other cities and referenced Oakland’s program fee increases (speaker cited $30/door in 2016 and $137/door by 2025, and stated this supported ~$30 million program costs—presented as an argument that costs could balloon).
- Business community concerns: San Leandro Chamber of Commerce reported member survey results: 60% oppose the ordinance; 70% very concerned about negative impacts to investment.
Council direction (not a formal ordinance vote at this meeting)
- After questions and testimony, Council provided majority guidance (as summarized by the City Manager for the record):
- Annual rent increase limit: “3% or 65% of CPI, whichever is lower.”
- Base rents set to 2025 rents (direction tied to concerns about incentivizing rent hikes prior to implementation).
- Confirm staff should continue with the enhanced enforcement option and the full cost recovery framework (with fee study to return in early 2026 timeframe per staff timeline).
Reconsideration Item 10A — Limited Waiver of Attorney-Client Privilege (June 2024 Revenue Measure Survey)
Background: City Attorney explained Mayor’s charter authority to suspend and force reconsideration of prior council action.
- Reconsideration vote passed 5-2 (Aguilar and Azevedo no).
- After reconsideration, Council voted to approve the limited waiver and release the June 2024 revenue measure tracking survey results:
- Passed 5-2 (Aguilar and Azevedo no).
- Staff clarified the document contained no personally identifiable information and was aggregated/anonymized.
Reconsideration Item 10B — Continue Exploring Potential Revenue Measures for November 2026
- Reconsideration vote passed 6-1 (Azevedo no), reopening the prior action.
- Council then debated whether to proceed with revenue-measure exploration (including a consultant agreement with Clifford Moss for outreach/survey work).
- A substitute motion was adopted to:
- Continue exploring potential revenue measures for the November 2026 ballot, including consulting services for outreach/survey feasibility work; and
- Waive attorney-client privilege for the same level of survey data as released for June 2024 (to ensure future polling results could be publicly released in a limited way).
- Final vote on the substitute motion: 4-3 (Yes: Bolt, Gonzalez, Viveros Walton, Simon; No: Aguilar, Bowen, Azevedo).
- Staff noted initial work had $92,000 available (no incremental budget at the start), but full campaign/ballot process could be $300,000–$600,000 later (not budgeted at the time of discussion).
Closed Session Recording Policy (Motion by Councilmember Simon)
- Council considered a motion to video and audio record closed sessions under Brown Act procedures, with recordings held by the City Attorney (with discussion of security/storage and legal exposure).
- After a successful motion to call the question (4-3), the underlying motion passed 4-3 (Yes: Bolt, Aguilar, Simon, Azevedo; No: Gonzalez, Bowen, Viveros Walton).
- City Attorney cautioned that access and confidentiality rules are governed by the Brown Act and discussed potential legal risk that any created record could become discoverable in limited circumstances.
Key Outcomes
- Consent Calendar approved: 6-0 (Azevedo absent).
- Rent stabilization program direction given (no ordinance adoption yet):
- Rent cap guidance: 3% or 65% of CPI, whichever is lower.
- Base rents set to 2025 rents.
- Proceed toward enhanced enforcement model and full cost recovery approach, with fee study and ordinance readings anticipated in early 2026 per staff timeline.
- Reconsideration + release of June 2024 survey results:
- Reconsideration passed 5-2.
- Release/limited waiver passed 5-2.
- Reconsideration + continue November 2026 revenue-measure exploration:
- Reconsideration passed 6-1.
- Direction to proceed (with limited waiver approach for future survey data) passed 4-3.
- Closed session recordings approved: 4-3; staff to return with a future resolution to codify implementation details.
Meeting Transcript
Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. December 15th, it is 7 p.m. I will lead us in the Pledge of Allegiance. Please stand if you're able to, and please join. I pledge to the five of the United States of America and to the recovery of the religious states, one nation under God, indivisible, liberty and justice for all. Madam Clerk, would you please take roll? Council Member Viveros Walton. Present. Council Member Azevedo is absent. Councilmember Aguilar. Present. Councilmember Simon. Present. Vice Mayor Bowen. Present. Councilmember Bolt. Here. And Mayor Gonzalez. Present. The City of San Orlando conducts orderly meetings to fulfill its mandate. Discriminatory statements or conduct that would potentially violate the Federal Civil Rights Act of 1964 and or the California for Employment and Housing Act, California Pre-Ellant Code Sections 403 or 415, are per se disruptive to a meeting and will not be tolerated. Please see the City Council Handbook and City Council Meeting Rules of Decorum for more information. Madam Clerk, your announcement, please. If you would like to make a public comment during the meeting, you can do so in person or via Zoom.