CITY OF OAKLAND

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O F F I CE O" T' Yc i TV CL E R K
COUNCIL AGE NDA R E POR T
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9 n n ~ H I M ^ n P:.J 0- ^ 7
iuim JU"i Ju n i t* Ot
TO: Office of the City Administrator
ATTN: Deborah E dgerly
FR OM: Community and E conomic Development Agency, Housing and Community
Development Division, R ent Adjustment Program
DATE : J uly 12,2005
R E : R E SOLUTION AME NDING R E NT ADJ USTME NT PR OGR AM
R E GULATIONS TO R E MOVE THE R E QUIR E ME NT THAT ONE OF
E ACH OF THE THR E E CLASS OF ME MBE R S (NE UTR AL, LANDLOR D,
AND TE NANT) BE PR E SE NT FOR QUOR UM OF THE HOUSING,
R E SIDE NTIAL R E NT, AND R E LOCATION BOAR D AND PR OVIDE
THAT A QUOR UM IS A SIMPLE MAJOR ITY OF THE ME MBE R S.
SUMMAR Y
The Housing R esidential R ent and R elocation Board (" R ent Board" ) is composed of
seven members, two landlord representatives, two tenant representatives and three neutral
members, neither landlords nor tenants, usually homeowners. Under current R ent Board
R egulation 8.22.040.B.2, adopted by the City Council as R esolution 77194, at least one
landlord representative, one tenant representative and one 'neutral' representative must
be present to make a decision on any matter, when coming before the Board. Over the
past 8 months, 8 meetings have been cancelled where a majority of members have been
present, but did not include representation from the three groups. On March 10, 2005, the
Housing R esidential R ent and R elocation Board approved a recommendation to the City
Council to eliminate the supermajority quorum requirement. To that end, staff is
recommending the City Council eliminate this unique requirement so that a simple
majority of the R ent Board may constitute a quorum and transact business.
FISCAL IMPACT
The proposed change does not directly impact the R ent Adjustment program budget.
Undetermined efficiency is gained through the scheduling and completion of monthly
meetings.
BACKGROUND
This R egulation was adopted by R esolution 77194 and has been in effect since J uly 1,
2002. Prior to its adoption, a simple majority of the Board members was all that was
required to transact business. Board meetings have a primary function to rule on appeal
matters from tenants and landlords. Meetings occurred on its regularly scheduled dates.
Since the July 1, 2002 implementation date, 16 meetings have been cancelled due to lack
of a quorum. That has created a serious impediment to the conduct of business.
Item:
Communi ty & E conomic Development Cmte.
J uly 12, 2005
Deborah E dgerly
R E :R esohition Amending R ent Adjustment
Program R egulations Page 2
On March 10, 2005, the Housing R esidential R ent and R elocation Board approved a
recommendation to the City Council to eliminate the supermajority quorum requirement.
The HR R R B's R esolution is attached as Attachment A.
KE Y ISSUE S AND IMPACTS
The supermajority quorum requirement imposed on the R ent Board is unique. No
other Board or Commission has this requirement to transact business.
The supermajority quorum requirement creates an impediment to transacting
business. During the last 12 months 10 meetings were cancelled due to the lack
of a supermajority. These cancellations have caused delays to the appeals
process, inconvenienced parties wishing to have their appeals heard and caused
delays in discussing detailed proposals to modify the R ent Adjustment Ordinance
and the R ent Adjustment R egulations.
Because it has negatively affected the conduct of business, it has had negative
impacts on the ability of Board members to carry out their functions effectively.
It was one reason given by a Board member for his recent resignation.
The supermajority quorum requirement is unnecessary. Board members are
expected by law to act responsibly and exercise their independent and neutral best
judgment within the parameters created by the Ordinances and R egulations the
Board administers regardless of whether the member is a landlord or tenant or
homeowner. In case of a conflict of interest, a Board member is required by law
to abstain from participating in the deliberations and vote on that case or issue.
The supermajority quorum requirement creates the false appearance that Board
Members really are irremediably biased. The quality of participation of each
Board member has improved with experience, but no member of the R ent Board
has uniformly voted in favor of their supposed constituency in every case nor has
any member of the Board exhibited bias toward or against any party in the
experience of the current Staff members.
E limination of the supermajority requirement would create an incentive for Board
members to attend Board meetings. If Member representatives of the Landlord or
Tenant constituencies truly believe that their interests are at stake, they will attend
Board meetings to protect those interests.
Item:
Communi ty & E conomic Development Cmte.
J uly 12, 2005
Deborah E dgerly
R E :R esolution Amending R ent Adjustment
Program R egulations Page 3
SUSTAINABLE OPPOR TUNITIE S
Pursuant to City Council R esolution No. 74678, C.M.S. adopted on December 1, 1998,
staff encourages property owners to operate sustainable projects. Stabilizing Oakland's
existing rent tenancies stabilize existing neighborhoods and rental communities.
The rental regulation programs address the " 3 E 's" of sustainability by:
E conomic:
Preserve the affordable housing inventory for families, seniors, and disabled
people in Oakland.
Mitigate the adverse economic pressure on surrounding neighborhoods caused by
new housing development.
E nvironmental:
Preventing disruption of the urban infill and transit-oriented workforce that
already has an operative family infrastructure, and senior, and disabled housing.
Mitigating any adverse environmental impacts of development on existing rental
housing.
Social E quity:
Improving the landscape and climate of Oakland's neighborhoods by encouraging
longer-term tenancies in rental housing.
E nabling low-income families to become homeowners.
The proposed R esolution now before the City Council will increase program
efficiency and enhance the sustainable aspects of the program.
DISABILITY AND SE NIOR CITIZE N ACCE SS
Access to the R ent Board for disabled and senior citizens will be enhanced because they
will be able to attend meeting with a greater certainty that they will, in fact, take place.
R E COMME NDATIONS AND R ATIONALE
It is recommended that the City Council approve the R esolution modifying the quorum
requirement for the R ent Board to provide that a simple majority of the members is
required to transact business. The overarching rationale is increased program efficiency.
ALTE R NATIVE R E COMME NDATIONS
As a much inferior alternative, Staff recommends expanding the R ent Board to nine
members, including three landlord representatives, three tenant representatives and three
neutral representatives.
Although this alternative proposal would alleviate the quorum problems, it would
exacerbate the problems in conducting meetings efficiently. The membership of the
Item:
Communi ty & E conomic Development Cmte.
J uly 12, 2005
Deborah E dgerly
R E :R esolution Amending R ent Adjustment
Program R egulations Page 4
Board was reduced by the City Council from nine to seven in the year 2000 amendments
to the R ent Adjustment Ordinance (Ordinance Number 12273), in order to improve the
Boards functioning.
ACTION R E QUE STE D BY CITY COUNCIL
The City Administrator recommends that the City Council approve the attached
R esolution to provide that a simple majority of the members of the Housing R esidential
R ent and R elocation Board constitutes a quorum to transact business.
R espectfully submitted
DANVANDE R PR IE M
Director of R edevelopment, E conomic
Development and Housing
R eviewed by:
SeanR ogan
Deputy Director
Housing and Community Development
APPR OVE D AND FOR WAR DE D TO
THE COMMUNITY AND E CONOMIC
DE VE LOPME NT COMMITTE E
Prepared by:
R ick Nemcik Cruz ,
R ent Adjustment Program Manager
OFFICE OF T# cif V" ADMINISTR ATOR
Item:
Communi ty & E conomic Development Cmte.
J uly 12,2005
OAKLANDCITY COUNCIL
ofM
ce-:
RESOLUTIONNo. C.M.S^ JIJH 30 PM 2
:
53
INTRODUCEDBY COUNCIL-MEMBER
Resolution Amen din g Ren t Adjustmen t Program
Regulation s To Remove the Requiremen t That On e of Each
of the Three Classes of Members (Neutral, Lan dlord, an d
Ten an t) be Presen t for Votin g Quorum of the Housin g,
Residen tial Ren t, an d Relocation Board an d Provide That a
Quorum Is ASimple Majority Of The Members
WHEREAS, the Ren t Adjustmen t Program regulation s require that for the Housin g, Residen tial
Ren t an d Relocation Board to decide a matter at least on e of each of the classes of Ren t Board
members (lan dlord, ten an t, an d n eutral) be presen t when a matter first comes before the Board;
WHEREAS, this "supermajority" votin g quorum requiremen t creates an impedimen t to the Ren t
Board con ductin g busin ess. Between the eight mon th period of September 2004 an d April 2005,
eight Ren t Board meetin gs were can celled due to the lack of a supermajority. These can cellation s
have been the major cause in delays in decidin g pen din g appeals, have in con ven ien ced parties
wishin g to have their appeals hear, an d have caused delays the Ren t Board bein g able to con duct
other busin ess;
WHEREAS, the supermajority quorum requiremen t is un n ecessary. Board members are
expected to act respon sibly an d exercise their in depen den t an d n eutral best judgmen t within the
parameters created by the Ordin an ces an d Regulation s the Board admin isters, regardless of
whether the member is a lan dlord or ten an t or homeown er;
WHEREAS, elimin ation of the supermajority requiremen t would create an in cen tive for Board
members to atten d Board meetin gs. If Member represen tatives of the Lan dlord or Ten an t
con stituen cies truly believe that their in terests are at stake, they will atten d Board meetin gs to
protect those in terests;
WHEREAS, elimin ation of the supermajority requiremen t would make the Ren t Adjustmen t
Program operate more efficien tly an d would reduce the costs of operatin g the program;
WHEREAS, the Ren t Board recommen ds removin g the supermajority votin g quorum requiremen t;
n ow therefore, be it
RESOLVED, that the an amen dmen t to Section 8.22.040(B)(2) of the Ren t Adjustmen t Program
Regulation s is approved to read as follows:
341664 1
Decision s of the Board. A majority of the Board members presen t is
required to make decision s, provided that a quorum is presen t.
For the Board to make a decision on the first time a matter comoG boforo
the Board, the quorum must in clude at least on e of each of the throe
categorioG of Board momberc (ten an t, residen tial ren tal property own er,
an d on e who is n either of the fofegoin g). If a matter can n ot bo decided
besauGO at least on o of each of the three categories of Board members ic
n ot proson t, the matter will bo coriGidorod a seceftd time at a futuro
fn eetin g whore the matter can be decided ovon if at least on o morn bef
fern -each category io n ot presen t. Amajority of the Board mombefs
presen t arc required to make decision s, provi4e4-a-q-B9 rurn ic presen t an d
sufficien t members of each category are preset
IN COUNCIL, OAKLAND, CALIFOR NIA, 20
PASSE D BY THE FOLLOWING VOTE :
AYE S - BR OOKS, BR UNNE R , CHANG, KE R NIGHAN, NADE L, QUAN. R E ID, AND
PR E SIDE NT DE LA FUE NTE
NOE S-
ABSE NT-
ABSTE NTION-
ATTE ST:
LATONDA SIMMONS
City Clerk and Clerk of the Council
Of the City of Oakland, California
CITY OF OAKLAND
HOUSING, R E SIDE NTIAL R E NT AND R E LOCATION BOAR D
R E SOLUTION NO. R 05-0001
A R E SOLUTION TO R E COMME ND TO THE CITY COUNCIL AN
AME NDME NT OF THE R E GULATIONS TO PR OVIDE THAT A SIMPLE
MAJOR ITY OF THE ME MBE R S OF THE HR R R B SHALL CONSTITUTE A
QUOR UM
WHE R E AS, the supermajority quorum requirement imposed on the R ent Board is
unique. No other Board or Commission has this requirement to transact business;
WHE R E AS, the supermajority quorum requirement creates an impediment to transacting
business. Curing the last 12 month, 9 meetings were cancelled due to the lack of a
supermajority. These cancellations have been the major cause in delays in deciding
pending appeals, have inconvenienced parties wishing to have their appeals hear, and
have caused delays in discussing detailed proposals to modify the R ent Adjustment
Ordinance and the R ent Adjustment R egulations;
WHE R E AS, the supermajority quorum requirement is unnecessary. Board members are
expected to act responsibly and exercise their independent and neutral best judgment
within the parameters created by the Ordinances and R egulations the Board administers,
regardless of whether the member is a landlord or tenant or homeowner. In case of a
conflict of interest, a Board member is required by law to abstain from participating in
the deliberations and vote on that case or issue;
WHE R E AS, elimination of the supermajority requirement would create an incentive for
Board members to attend Board meetings. If Member representatives of the Landlord or
Tenant constituencies truly believe that their interests are at stake, they will attend Board
meetings to protect those interests; now therefore, be it
R E SOLVE D that the Housing, R esidential R ent and R elocation Board hereby
recommends to the City Counci] that Section 8.22.040(B)(2) of the R ent Adjustment
Program R egulations be amended to read as follows: " Decisions of the Board. A
majori ty of the Board members present is required to make decisions, provided that a
quorum is present."
Attachment A
In the Ci ty of Oakland, Housi ng, R esi denti al R ent and R elocati on Board
Oakland, Cali forni a, March 1 0 ,2 0 0 5
Passed b)
1
the f ollowi ng vote:
AYE S: R jc ardo Hunter, S, Kennedy, S, Sanger, D. Taylor,
NAYS: None
ABSE NT: I. Bell, M., Montag, H. Bolt Trippe
.ABSTE NTION:
ATTE ST [I-
lyHILLE R TBOLT TR IPPE
Chairperson of the Housing, R esidential
R ent arid R elocation Board
Attachment A