Title
Adoption of Resolution Calling an Election to be Consolidated with the City’s Next General Municipal Election on November 8, 2016, and Submitting to the Voters at That Election a Measure, the Rent Stabilization Act, that Proposes to Have the Voters Confirm Ordinance 3148, which Amended the Alameda Municipal Code by (a) Adding Article XV to Chapter VI Concerning (1) Review of Rent Increases Applicable to Certain Rental Units and (2) Limitations on Evictions and the Payment of Relocation Assistance Applicable to All Rental Units; (B) Amending Section 2-23.4 Concerning the Duties of the Rent Review Advisory Committee and (c) Suspending Article XIV of Chapter VI in Its Entirety; and
Consider Authoring a Direct and Possible Rebuttal Argument. (City Clerk 2220)
Body
To: Honorable Mayor and Members of the City Council
From: Jill Keimach, City Manager
Re: Adopt a Resolution Calling an Election to be Consolidated with the City’s Next General Municipal Election on November 8, 2016, and Submitting to the Voters at That Election a Measure, the Rent Stabilization Act, that Proposes to Have the Voters Confirm Ordinance 3148, which Amended the Alameda Municipal Code by (a) Adding Article XV to Chapter VI Concerning (1) Review of Rent Increases Applicable to Certain Rental Units and (2) Limitations on Evictions and the Payment of Relocation Assistance Applicable to All Rental Units; (B) Amending Section 2-23.4 Concerning the Duties of the Rent Review Advisory Committee and (c) Suspending Article XIV of Chapter VI in Its Entirety; and Consider Authoring a Direct and Possible Rebuttal Argument
BACKGROUND
On March 1, 2016, the Council adopted the Rent Stabilization and Limitation on Evictions Ordinance (Ordinance 3148), which, among other tenant protection matters, (a) limits residential rent increases to once annually, (b) requires the Rent Review Advisory Committee (RRAC) to review all residential rent increases above 5%, (c) limits reasons for terminating tenancies and (d) requires rental property owners to pay relocation fees to tenants when terminating certain tenancies. That Ordinance went into effect on March 31, 2016.
Two initiatives have been filed in the City regarding the residential rent related matters:
1) A Proposed Charter Amendment to Establish Rent Control, a Rent Control Board, and Regulate Termination of Tenancies (Renters’ Initiative); and
2) A Proposed Charter Amendment to Prohibit the City from Imposing Restrictions on the Price for which Real Property May be Rented or Sold (Property Owners’ Initiative).
On July 19, 2016, the City Council accepted the certificate of sufficiency for the Renters’ Initiative and placed the measure on the November 8, 2016 ballot. The random signature check of the Property Owners’ Initiative found the valid signatures to be 102%. A complete check is done when the random sample falls within 95% to 110%. If the complete signature check is completed before August 8, and the number of valid signatures for the Property Owners’ Initiative is found sufficient, staff will amend the August 8 agenda, which is allowable under the City’s Sunshine Ordinance, when information is received from an outside agency (here, the Registrar of Voters), so that the City Council may also place that Initiative on the November ballot.
At the July 5, 2016 City Council meeting, staff provided a comparison of the City’s Ordinance, the Renters’ Initiative and the Property Owners’ Initiative and the City Council directed staff to present options for a possible City measure at its next meeting. On July 19, 2016, the City Council voted unanimously to place the City measure on the November 2016 ballot, asking the voters to confirm Ordinance 3148 with two provisions: 1) that the City Council retain the authority and flexibility to amend or repeal the Ordinance, rather than require a vote of the people to make such changes; and 2) that the Ordinance would prevail if it received the highest number of votes at the November 8, 2016 election, regardless of the outcome of the other initiatives.
DISCUSSION
The City Council voted unanimously to place Ordinance 3148 on the November 8, 2016 ballot as a measure rather than a Charter amendment to preserve one of its key attributes - flexibility to be revised from time to time to meet evolving community needs. In addition, the Council felt that it was important to give the community an opportunity to weigh in on an important program that the Council recently enacted after extensive analysis and a number of well attended public hearings. The rent program has been in place for almost four months. Highlights of the program’s first three months (including cases heard at the July RRAC meeting) include:
• 40 mandatory notices have been filed by landlords for rent increases above 5%;
• Four notices have been filed by tenants for rent increases below 5%;
• 38 cases have been resolved prior to a RRAC hearing (worked out between the tenant and landlord); 20 of which resulted in agreed upon rent increases between 5-10%;
• RRAC has heard six cases, four of which resulted in agreed upon rent increases between 5-10%;
• A tenant in one RRAC decision has petitioned for a binding decision by a hearing officer;
• Eleven termination notices have been processed and relocation payments have been made; and
• One Capital Improvement Program application is being processed.
The Housing Authority, as the Program Administrator, continues to work diligently to get the word out to tenants and landlords about the program and to update and expand the program website (www.alamedarentprogram.org <http://www.alamedarentprogram.org>).
An important goal of the rent program was to slow the rapid increase in rents and to discourage termination of tenancies solely to raise rents. By requiring mandatory mediation for all rental properties (single-family as well as multi-family) receiving rent increases above 5%, the intent of the Ordinance is to encourage landlords to keep annual rent increases at or below 5%. The opportunity for a binding hearing process for Costa-Hawkins non-exempt units (generally units in a multi-family building, not single family homes) provides an additional avenue for dispute resolution in the event of an unsuccessful mediation. By limiting the number of no cause evictions monthly/annually, requiring payment of relocation benefits, and requiring that the rent for the next tenant be no more than 5% higher than the previous tenant’s rent, terminations solely to increase rents would be greatly reduced.
While the program is still new, it appears that there has not been a significant number of rent increases above 5% and that the vast majority of those the filed rent increases were able to reach mutual agreement under the City’s Ordinance with only one resulting in a petition for a binding decision. Through July 15, there have been four terminations for no cause that have been reported to the Housing Authority pursuant to the requirements of the Ordinance.
Given the thorough process that was undertaken to develop and adopt the Ordinance and the rent program’s track record to date, Council agreed that it was important to allow the community to confirm the Ordinance at the ballot box.
Ballot Question
The voters will be asked the following ballot question concerning their confirmation of the Ordinance.
City of Alameda Measure: Shall the voters adopt the City’s March 31, 2016 Rent Stabilization Ordinance, which (a) limits residential rent increases to once annually, (b) requires mediation for all residential rent increases above 5%, including binding decisions on rent increases for most rental units, (c) restricts reasons for evictions, (d) requires landlords to pay relocation fees when terminating certain tenancies, and (e) permits the City Council to amend the ordinance to address changing concerns and conditions?
Ballot Argument
State election law allows the City Council to determine its interest in authoring an argument regarding the measure for printing in the sample ballot. Direct arguments for or against the measure are to be submitted to the City Clerk’s office by 6:00 p.m. on Thursday, August 18, 2016, are limited to 300 words and can have no more than five signers. Arguments must be accompanied by the printed name(s) and signature(s) of the author(s) submitting it, or if submitted on behalf of an organization, the name of the organization, and the printed name and signature of at least one of its principal officers who is the author of the argument. A Declaration of Author(s) form is available from the City Clerk’s office.
The resolution provides that rebuttal arguments against the measure can be filed. Rebuttals are to be submitted by 6:00 p.m. on Thursday, August 25, 2016, are limited to 250 words and can have no more than five signers.
The City Council has options regarding the preparation of a ballot argument and potential rebuttal. The City Council may: 1) draft an argument as a whole body in open session, which would require the Council to meet to review the language before August 18; 2) authorize no more than two Councilmembers to meet as a subcommittee of the City Council to draft an argument and have the entire Council sign; 3) authorize no more than two Councilmembers to draft an argument and have a combination of Councilmembers and other eligible voters sign; or 4) authorize no more than two Councilmembers to draft an argument and sign and have up to three/four other eligible voters sign.
Lastly, the resolution directs the City Attorney to prepare an impartial analysis not exceeding 500 words in length to be printed in the ballot.
FINANCIAL IMPACT
Since the City will be conducting a General Municipal Election on November 8, 2016, the cost of placing the measure on the ballot is approximately $8,000 for translation, typesetting, and printing.
MUNICIPAL CODE/POLICY DOCUMENT CROSS REFERENCE
The voters will be asked to confirm Alameda Municipal Code Article XV of Chapter VI, Section 2-23.4 and suspension of Article XIV of Chapter VI.
ENVIRONMENTAL REVIEW
This action is exempt from the California Environmental Review Act (“CEQA”) pursuant to CEQA Guideline section 15378 as it does not constitute a project within the meaning of CEQA because it does not have a potential for resulting in a direct physical change in the environment or a reasonably foreseeable indirect physical change in the environment. As a separate and independent basis, this action is also exempt under CEQA Guideline section 15061(b)(3) (no significant environmental impact). This action simply submits to the voters the City’s Rent Stabilization Act which limits residential rent increases to once annually, requires the Rent Review Advisory Committee to review all residential rent increases above 5%, limits reasons for terminating tenancies, and requires rental property owners to pay relocation fees to tenants when terminating certain tenancies. These impacts are purely socio- economic and do not have a reasonable connection to the physical environment.
RECOMMENDATION
Adopt a Resolution calling an Election to be consolidated with the City’s next General Municipal Election on November 8, 2016, and submitting to the voters at that Election a measure, the Rent Stabilization Act, that proposes to have the voters confirm Ordinance 3148, which amended the Alameda Municipal Code by (a) adding Article XV to Chapter VI concerning (1) review of rent increases applicable to certain rental units and (2) limitations on evictions and the payment of relocation assistance applicable to all rental units; (B) amending Section 2-23.4 concerning the duties of the Rent Review Advisory Committee and (c) suspending Article XIV of Chapter VI in its entirety; and consider authoring a direct and possible rebuttal argument.
Respectfully submitted,
Lara Weisiger, City Clerk
Janet Kern, City Attorney
Debbie Potter, Community Development Director
Financial Impact section reviewed,
Elena Adair, Finance Director