HomeMy WebLinkAbout2001-12-03 Ordinance 4728· '
follows:
ORDINANCE NO. 4728
ORDINANCE OF THE COUNCIL OF THE CITY OF PALO
ALTO ADDING CHAPTER 9.72 TO TITLE 9 [PUBLIC
PEACE, MORALS AND SAFETY] OF THE PALO ALTO
MUNICIPAL CODE RELATING TO MANDATORY RESPONSE TO
REQUEST FOR DISCUSSION OF DISPUTES BETWEEN
LANDLORDS AND TENANTS
The Council of the City of Palo Al to does ORDAIN as
SECTION 1. Chapter 9.72 is hereby added to Title 9
[Public Peace, Morals And Safety] of the Palo Alto Municipal
Code to read as follows:
CHAPTER 9.72
MANDATORY RESPONSE TO REQUEST FOR DISCUSSION OF DISPUTES BETWEEN
LANDLORDS AND TENANTS
9.72.010 Purposes and Findings.
declares as follows:
The City Council finds and
(a) There is an imbalance between the supply of and
demand for rental housing in the City of Palo Alto. The
imbalance is the result of both a shortage of rental housing and
overwhelming market demand.
(b) The imbalance between supply and demand creates
an imbalance of bargaining power between landlords and tenants.
(c) As a result of these market and bargaining power
imbalances, Palo Al to tenants may be unwilling or unable to
assert their legal rights and other concerns to their landlords.
(d) Communication between landlords and tenants is
impaired as a result. Moreover I the Palo Al to rental housing
market is less responsive to the needs of tenants because
~customer service" is not needed to attract and retain tenants.
(e) These impacts are detrimental to the health,
safety and general welfare of Palo Al to and the surrounding
region because the stability, security and quality of housing
opportunities are reduced.
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(f) These impacts can be reduced by
communications between landlords and tenants through
reliable process for the conciliation and mediation of
improving
a fair and
disputes.
(g) Because effective communication
way," it is essential that all affected parties
participate in mediated dispute resolution.
must be "two-
be required to
(h)
communications
mediation from
this chapter.
In order to further assure
it is necessary to protect the
retaliation for exercising the rights
improved
parties to
afforded by
(i) The City Council recognizes that it is important
to monitor and improve the processes established in this chapter
on a periodic basis.
9.72.020 Mandatory Discussion of Rental Housing Disputes.
All persons (landlords and tenants) residing in, owning,
or managing residential rental property to which this chapter
applies shall participate in the conciliation and mediation of
rental housing disputes as provided in this chapter. The
definitions applicable to this chapter appear in Section
9.72.080.
9.72.030 Applicability.
This chapter shall apply to residential rental property
as follows:
(a) Any residential rental property containing two or
more dwelling units, except two-unit residential rental property
in which one of the units is owner-occupied or
(b) Any residential rental property that is owned by
a person or legal entity that owns two or more residential
rental properties within the City.
9.72.040 Dispute Resolution Process.
(a) Any tenant or landlord may request mandatory
discussion of rental housing disputes by filing a written
request for dispute resolution within 21 days of learning the
facts that give rise to the dispute. The request must be filed
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with the City's Facilitation
enough factual information to
being raised.
Administrator, and must provide
outline the basic issue or issues
(b) Within 7 days of receiving a written request for
dispute resolution, the Facilitation Administrator will notify
both tenant and landlord that a case has been opened and will
provide a copy of the request to the responding party. The
Facilitation Administrator will also initiate a conciliation
process, to be undertaken by the Facilitation Administrator,
other City staff, or a Mediator, before mediation is scheduled.
(c) The Facilitation Administrator will not open
dispute resolution, or will order dispute resolution closed,
when it is clear from the written request that there is no
substantial factual basis for the dispute, or when the dispute
involves the actions or behavior of persons, or conditions, that
are not within the control or responsibility of the parties; or
when the dispute is frivolous, malicious or vexatious; or when
further proceedings are not, in the sole judgment of the
Facilitation Administrator, likely to be productive. Both
parties will be notified of the Facilitation Administrator's
action and shall have access to the case summary forms used by
the Facilitation Administrator, which will not contain any
confidential communica'tions from the parties. The Facilitation
Administrator will also order dispute resolution closed if the
parties agree to engage a mediator of their own choice, so long
as the party who requests the mediator agrees in writing to bear
all costs related to that service.
(d) The Facilitation Administrator will promptly
assign the request to a mediator who will contact all relevant
parties to conciliate and mediate the dispute. The Facilitation
Administrator shall have the authority to combine different
disputes or different parties in the interest of efficiently
addressing the disputes, provided that any party may, for
reasons of confidentiality or otherwise, opt out of a combined
mediation involving more than one tenant or landlord by
notifying the Facilitation Administrator. All communications
between the Facilitation Administrator and the parties as well
as between the mediator or conciliator and the parties shall be
confidential and subj ect to the confidentiality guarantees set
forth in California Evidence Code sections 703.5 and 1115-1128,
as they may be amended or superseded. The mediator assigned to
the case will promptly investigate and if necessary disclose any
conflict of interest or potential conflict of interest to the
parties as soon as the conflict or potential conflict becomes
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known to the mediator. At the time of disclosure, the parties
will have the option of waiving any such conflict as long as the
waiver is in writing. The City shall not be obligated to incur
any financial obligation in order to assign a mediator. A
mediator will not be assigned if there are not qualified
volunteers available without cost to the City or parties.
(e) No mediation will be scheduled until at least 14
days after the parties are notified in order to allow time for
conciliation efforts before mediation. Unless all parties agree
in writing to waive the time limit, the initial mediation
session will be conducted within 28 days of the date the written
request for dispute resolution is filed. The landlord's
business location shall be considered so that the mediation will
be scheduled at a reasonably convenient time taking into account
the distance that the landlord must travel to attend the
mediation.
(f) If a mediation session is held, the mediator
shall provide the parties with an opening statement explaining
the nature of the process and the ground rules. Thereafter the
mediator will determine the manner and course of the session,
including whether to meet with the parties in caucus, provided
that the general guiding principle will always be to provide the
parties with a full opportunity to air the concerns giving rise
to the dispute.
(g) The landlords and/or tenants involved in the
dispute shall be obligated to personally appear at a mediation
session scheduled by a mediator. All parties must participate
in the mediation session until completion of the mediator's
opening statement. All parties appearing must have the legal
authority to resolve disputes arising under this chapter.
Participation in mediation shall be voluntary in all respects
after the opening statement. The Mediator may, with the consent
of all parties, schedule additional sessions as needed.
(h) No party shall be obligated to reach any specific
agreement, or to reach any agreement at all, as a result of
participating in conciliation or mediation communications. If
an agreement is reached, it will be stated in writing by the
mediator or by the parties. Any such agreement shall be
confidential and will not be enforceable or usable for any
purpose outside the dispute resolution process, unless all
signatories agree that the document can be disclosed or used in
other proceedings.
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9.72.050 Property Registration.
(a) The landlord of each residential rental property
within the City shall register the unit or units with the City,
regardless of whether the residential rental property is listed
in section 9.72.030. The registration shall include the name
and mailing address of the owner or owners of the property, as
well as the name, mailing address and contact telephone number
of the person having the legal authority to effectively resolve
disputes arising under this chapter.
(b) For the sole purpose of reimbursing the City of
Palo Alto for the reasonable costs of maintaining property
registration records and related administrative systems, the
owner or manager of each residential rental unit to which this
chapter applies shall pay a fee in an amount to be set by the
Palo Alto City Council.
9.72.060 Retaliation Prohibited.
No landlord or tenant who has been a party to
conciliation and mediation of rental housing disputes pursuant
to this chapter may undertake or cause any type of retaliatory
act or omission against another party as a result of the other
party having invoked or participated in the dispute resolution
process. The Facilitation Administrator upon request shall
review an act or omission, including a notice of eviction or an
unlawful detainer action, which occurs within six months of the
party's participation in conciliation and mediation of rental
housing disputes, unless the eviction or action is the result of
the unjustified failure or refusal to pay rent. In the event
that the Facilitation Administrator concludes that there is
sufficient evidence to investigate an act or omission of
retaliation under this provision, the relevant facts will be
referred to the city attorney for appropriate remedial action.
9.72.070 Notice of Tenant's Rights.
(a) Every rental agreement, lease, or other written
document evidencing or changing the terms of tenancy for a
Residential Rental Property to which this chapter applies shall
include or be accompanied by the following: A notice
summarizing the rights afforded by this chapter, including but
not limited to the protection against retaliation; and the name,
address and telephone number of the Facilitation Administrator.
The Facilitation Administrator shall prepare and publish
acceptable notification language, including the name, address
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and phone number of the City's Facilitation Administrator. The
notification shall be capitalized text at least 14 points in
size and shall state:
"THE PALO ALTO MUNICIPAL CODE GIVES YOU THE RIGHT TO MEDIATION
OF DISPUTES BETWEEN LANDLORD AND TENANT. YOU MUST REQUEST
MEDIATION WITHIN 21 DAYS OF LEARNING ABOUT THE FACTS THAT
CREATED THE DISPUTE. CONTACT THE CITY OF PALO ALTO'S
FACILITATION ADMINISTRATOR [name, address and phone] FOR FURTHER
INFORMATION. THE PALO ALTO MUNICIPAL CODE PROTECTS YOU FROM
RETALIATION FOR EXERCISING YOUR RIGHT TO MEDIATION."
(b) The notification shall be provided in English,
Spanish, Chinese and Russian in the translated form prepared and
published by the Facilitation Administrator.
(c) Failure to provide this notification shall result
in an automatic extension of the 21 day time limit for filing a
written request for dispute resolution pursuant to section
9.72.040 (a) . The automatic extension shall remain in effect
until 21 days after written notification is provided by the
landlord.
(d) Failure to provide the notification shall be
punishable pursuant to Palo Alto Municipal Code section 1.08.010
only if the landlord has been given written notification from
the City that informs the landlord of its obligations pursuant
to this section. The written notification to the landlord may
be provided by any reliable means of communication, but shall be
deemed received if sent via certified mail, postage prepaid,
return receipt requested. The written notification may be in
the form of a copy of this chapter. Copies of this chapter
shall be provided to any Palo Alto landlord or tenant without
cost upon request.
9.72.080 Definitions.
For the purpose of this chapter, the following terms are
defined as follows:
(a) "Conciliationll means a confidential telephone
call or other contacts by a mediator or the Facilitation
Administrator with a landlord and tenant for the purpose of
resolving a rental housing dispute.
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(b) " Facilitation Administrator" means the person or
entity responsible for the routine case intake, mediator
assignment and other administrative duties of the dispute
resolution process established by this chapter.
(c) "Landlord" means the owner or property manager
exercising effective control over the terms and conditions of
the tenancy of a residential rental property, including a person
with such control delegated through a durable power of attorney.
(d) "Mediation" means a meeting in which landlord and
tenant have the opportunity to communicate with a mediator and
each other in a face-to-face setting at a neutral location in
order to resolve a rental housing dispute under ground rules
designed to protect the confidentiality and neutrality of the
communications.
(e) "Mediator" means a person who is certified to
have completed at least 40 hours of basic mediation training
with subsequent advanced training, and who has also participated
as a mediator or co-mediator in at least 10 mediations conducted
under the auspices of a recognized community or commercial
mediation program, and who has agreed (in a form acceptable to
the Facilitation Administrator) to a statement of mediation
ethics and principles, including an acknowledgement of the duty
to disclose any conflicts of interest in any specific case.
(f) "Rental Housing Dispute" means a fact-based
grievance raised by any tenant, owner, or property manager
regarding the occupancy or use of rental property limited to
rental rate increases, deposits, repairs and maintenance,
utilities, occupants, parking and storage facilities, privacy,
quiet enjoyment, or use of common areas.
(g) "Residential Rental Property" means any housing
structure occupied as a dwelling or offered for rent or lease as
a dwelling, whether attached, detached, single or mUltiple-
family.
(h) "Tenant" means the person or entity entitled to
occupy a residential rental property at the time that the rental
housing dispute arises.
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9.72.090 Penalties.
( a)
infractions
1.08.010.
Violations of this chapter shall be punishable as
pursuant to Palo Alto Municipal Code section
SECTION 2. The City Manager is directed to return to
the City Council in approximately 12 months with a status report
on the implementation of this Ordinance. The status report
shall be provided no more than 14 months after the effective
date of this Ordinance. The status report should include any
recommendations for amendment of the scope of issues defined as
Rental Housing Disputes.
SECTION 3. Any fees imposed pursuant to this Ordinance
shall be for the purpose of cost recovery only and shall not
exceed the cost of providing any services. This section is
declaratory of existing law.
SECTION 4. The Council finds that this ordinance is
exempt from the provisions of the California Environmental
Quality Act because it can be seen with certainty that there is
no possibility that the ordinance will have a significant effect
on the environment.
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SECTION 5, This ordinance shall be effective on the
third day of January, 2002,
INTRODUCED: November 13, 2001
PASSED: December 3, 2001
AYES: BEECHAM, BURCH, EAKINS, KLEINBERG, LYTLE,
WHEELER
NOES:
ABSENT: FAZZINO, MOSSAR
ABSTENTIONS:
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CHMtmERS ON (WITHIN 16
DAYS m: Irs PASSAGE
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01 poq!;r, lilat the foregoing is true
011206 sm 0052770
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Director of Community
Services
9
OJAKIAN,
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