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HomeMy WebLinkAboutStaff Report 296-07of Palo Alto C ty Manager’s ep rt TO: ATTN: FROM: DATE: SUBJECT: HONORABLE CITY COUNCIL POLICY AND SERVICES COMMITTEE 3 CITY MANAGER DEPARTMENT: COMMUNITY SERVICES JULY 9, 2007 CMR: 296:07 REFERRAL TO POLICY AND SERVICES COMMITTEE HUMAN RELATIONS COMMISSION RECOMMENDATION TO THE CITY COUNCIL TO DESIGNATE THE PALO ALTO MEDIATION PROGRAM AS A CITY CONTRACTOR FOR MANDATORY RESPONSE MEDIATION SERVICES RECOMMENDATION The Hmnan Relations Conmaission (HRC) requests that the City Council refer to the Policy and Services Committee its recommendations to designate the Palo Alto Mediation Prouam as a City contractor who implements the City’s Mandatory Response to Request for Discussion of Disputes between Landlords and Tenants Ordinance. BACKGROUND During its March 20 and April 12 meetings, the HRC heard testimony from the Palo Alto Mediation Program mediators and staff from the Project Sentinel Pro~am that administers the Palo Alto Mediation Program requesting that they should not be apart of the Human Services Resource Allocation Process (HSRAP) . They stated that they m’e designated to operate and implement a City ordinance, the Mandatory Response to Request for Discussion of Disputes between Landlords mad Tenants Ordinance. Therefore, they should be considered a City contractor and not have to compete for City HSRAP funding. They stated that they are providing a direct service for the City of Palo Alto and if they were not in place, City staff would have to implement the ordinance. The Mandatory Response to Request for Discussion of Disputes between Landlords and Tenants Ordinance was approved on October 15, 2001 by the City Council. The adopted ordinance provides for a mandatory discussion of disputes between landlords and tenants which provides for a neutral forum for discussing issues, including but not limited to rent increases. Either a tenant or a landlord may initiate a meeting with the Palo Alto Mediation Program. The Palo Alto Mediation Program schedules the meeting and both parties are required to appear and listen to a mediator read an opening statement as to the purpose of the meeting. Then either party may leave the meeting. In almost 98 percent of the cases, the two parties stay for the mediation session. The ordinance also requires landlords to provide written notification to tenants about CMR: 296:07 Page ! of 2 their rights and responsibilities and eliminates the exemption of condominiums from this ordinance. Th~ ordinance applies to landlords having more than one single-fanily home rental. BOARD/COMMISSION REVIEW AND RECOMMENDATION At its March 20 aid April 12 meetings, the HRC discussed and made a recommendation to the City Council requesting that the City Council refer to the Policy and Services Committee its recommendation that City Council approve the designation of the Palo Alto Mediation Program as a City contractor who implements the City’s Mandatory Response to Request for Discussion of Disputes between Landlords and Tenants Ordinance. RESOURCE IMPACT The impact to City Staff will be implementing a Request for Proposals for the administration services and drafting a final contract for the agency awarded the mandatory mediation services contract to administer the Palo Alto Mediation Program. Staff would also modify the HSRAP and Human Services budget by na~sferring $66,805 from the HSRAP fund into the Human Services budget for contract services. ATTACHMENTS Attactm~em A: The Mandatory Response to Request for Discussion of Disputes between Landlords and Tenaats Ordinance PREPARED BY: Div~ision anager, Cubberley Center & Human Services DEPARTMENT HEAD: Assistant City Manager CMR: 296:07 Page 2 of 2 ORDINANCE NO. 4728 ORDiNA-NCE OF THE COUNCIL OF THE CITY OF PALO ALTO ADDING CPIAPTER 9.72 TO TITLE 9 [PUBLIC PEACE, MOR-~ S Ab-D SAFETY] OF THE PALO ALTO MVNICIPAL CODE REheATING TO Y~NDATORY RESPONSE TO REQ~ST FOR DISCUSSION OF DISPUTES BETWEEN L~_~-DLORDS ~i~q3 TENANTS The Council of the City of Palo Alto does ORDAIN as fol!ows: SECTION i. Chapter 9.72 is hereby added to Title 9 [Public Peace, Morals And Safety] of the Pa!o Alto Municipal Code to read as fol!ows: CHAPTER 9°72 M_A-NDATORY 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 Paio A!to. 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, Pa!o Alto tenants may be unwilling or unable to assert their lega! rights and other concerns to their land!ords. (d) Communication between landlords and tenants is impaired as a result. Moreover, the Palo Alto renta! 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 detrimenta! to the health, safety and general welfare of Palo Alto and the surrounding region because the stability, security and quality of housing opportunities are reduced. 011206 srn 0952720 (f) These impacts can be reduced by improving communications between landlords and tenants through a fair and reliable process for the conciliation and mediation of disputes. (g) Because effective communication must be "two- way," it is essentia! that all affected parties be required to participate in mediated dispute resolution. (h) In order to further assure improved communications it is necessary to protect the parties to mediation from retaliation for exercising the rights afforded by this chapter. (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. Al! persons (land!ords and tenants) residing in, owning, or managing residentia! rental property to which this chapter applies shal! 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 fol!ows: (a) Any residential rental property containing two or more dwelling units, except two-unit residential rental property in which one of the units is o~er-occupied or (b) Any residential rental property that is orbed 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 01 t206 sm 0052770 2 with the City’s Facilitation Administrator, and must provide enough factua! information to outline the basic issue or issues being raised. (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 wil! 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 factua! 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 communications from the parties. The Facilitation Administrator wil! also order dispute resolution c!osed 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 al! costs related to that service. (d) The Facilitation Administrator wi!l 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. A!l communications between the Facilitation Administrator and the parties as wel! as between the mediator or conciliator and the parties shal! be confidentia! and subject 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 wil! promptly investigate and if necessary disclose any conflict of interest or potentia! conflict of interest to the parties as soon as the conflict or potential conflict becomes 011206 ~ 0052770 3 known to the mediator. At the time of disclosure, the parties wil! have the option of waiving any such conflict as !ong as the waiver is in writing. The City shal! 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 wil! be scheduled until at least 14 days after the parties are notified in order to a!low time for conciliation efforts before mediation. Unless all parties agree in writing to waive the time limit, the initial mediation session wi!l be conducted within 28 days of the date the written request for dispute resolution is filed. The landlord’s business location shal! 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 shal! provide the parties with an opening statement explaining the nature of the process and the ground rules. Thereafter the mediator wil! determine the manner and course of the session, including whether to meet with the parties in~ caucus, provided that the genera! guiding principle will always be to provide the parties with a full opportunity to air the concerns giving rise to the dispute. (g) The land!ords and/or tenants involved in the dispute shal! be obligated to personally appear at a mediation session scheduled by a mediator. Al! parties must participate in the mediation session unti! completion of the mediator’s opening statement. Al! parties appearing must have the legal authority to resolve disputes arising under this chapter. Participation in mediation shal! be voluntary in all respects after the opening statement. The Mediator may, with the consent of a!l parties, schedule additiona! sessions as needed. (h) No party shall be obligated to reach any specific agreementl 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 shal! be confidential and wil! not be enforceable or usable for any purpose outside the dispute resolution process, unless al! signatories agree that the document can be disclosed or used in other proceedings. 011206 sm 0052770 9.72.050 Property Registration. (a) The landlord of each residentia! 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 shal! include the name and mailing address of the owner or owners of the property, as wel! 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 residenti-al rental unit to which this chapter applies shal! 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 re_quest shall review an act or omission, including a notice of eviction or an unlawfu! 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 wil!be referred to the city attorney for appropriate remedia! 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 fol!owing: 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 011206 sm 0052770 and phone nu~er of the City’s Facilitation Administrator. The notification shall be capitalized text at least !4 points in size and shall state: "THE PAL0 ALTO MUNICIPAL CODE GIVES YOU THE RIGHT TO MEDIATION OF DISPUTES BETWEEN LANDLORD A~ND TENanT. YOU MUST REQUEST MEDIATION WITHIN 21 DAYS OF LEA!%NING ABOUT THE FACTS THAT CREATED THE DISPUTE. CONTACT THE CITY OF PAL0 ALT0’S FACILITATION ADMINISTRATOR [namei address and phone] FOR FURTHER iNFOPdVLATION. THE PALO ALTO MU-N!CIPAL CODE PROTECTS YOU FROM RET~IATION 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 shal! 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 shal! be provided to any Pa!o 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) "Conciliation" 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. 011206 srn 0052770 (b) "Facilitation A~ministrator" 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 residentia! rental property, including a person with suoh contro! 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 neutra! !ocation in order to resolve a renta! 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 !0 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) "Residentia! Renta! 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. // // 01 [206 sm 0052770 7 9.72.090 Penalties. infractions 1.08.010. Violations of this chapter shal! be punishable as pursuant to Paio 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 shal! 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 Renta! 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 !aw. 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. // // // // // /! // // /! /! !/ 1206 sm 0052770 SECTION 5. This ordinance shall be effective on the third day of January, 2002. INTRODUCED: November 13, 2001 PASSED: December 3, 2001 AYES:BEECH-~/~,BURCH, EAKINS, WHEELER KLE ! b~BERG, LYTLE, OJAK!AAT , NOES: ABSENT: FAZZINO, MOSS~R ABSTENTIONS: ATTEST: City Ci~Mayor Cit"Attorney Services Director of ~tive Services 011206 sm 0052770 9