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HomeMy WebLinkAboutStaff Report 137-09 CMR:137:09 Page 1 of 3 TO: HONORABLE CITY COUNCIL FROM: CITY MANAGER DEPARTMENT: COMMUNITY SERVICES DATE: MARCH 16, 2009 CMR: 137:09 REPORT TYPE: PUBLIC HEARING SUBJECT: Human Relations Commission and Policy and Services Committee Recommendation to Adopt an Ordinance Amending Section 9.72.070 of Chapter 9.72 [Mandatory Response to Request for Discussion of Disputes Between Landlord and Tenants] of Title 9 of the Palo Alto Municipal Code to Void Rent Increases Given Without Notice of the Right to Mediation EXECUTIVE SUMMARY This report conveys to the City Council the recommendations of the Policy and Services Committee and the Human Relations Commission regarding amending Section 9.72.070 of Chapter 9.72 (Mandatory Response to Request for Discussion of Disputes between Landlord and Tenants) to provide that a landlord’s failure to provide the notice required by section 9.72.070 of a tenant’s rights to mediation services in a rental agreement, lease or other written document that changes the term of tenancy for a residential rental property shall void an increase The report also includes recommendations for a communication plan for conveying the requirements of the ordinance to landlords. RECOMMENDATION Staff recommends that City Council adopt the attached ordinance amending Section 9.72.070 of Palo Alto Municipal Code (PAMC) chapter 9.72 (Mandatory Response to Request for Discussion of Disputes between Landlords and Tenants) to void increases in rents when a rental agreement, lease or other written document that changes the term of tenancy for a residential rental property is not accompanied by the notice required by section 9.72.070 of a tenant’s rights to mediation services. BACKGROUND AND COMMITTEE REVIEW AND RECOMMENDATIONS The Policy and Services Committee concurred with the Human Relations Commission’s (HRC) recommendation and voted unanimously at its July 8, 2008 meeting to recommend that the City Council amend Chapter 9.72 of the Municipal Code to add language to Section 9.72.070 to void increases in rents when a rental agreement, lease, or other written document that changes the CMR:137:09 Page 2 of 3 term of tenancy for a residential rental property is not accompanied by the notice required of tenant’s rights to mediation services. The HRC recommended the amendments to PAMC Sections 9.72.070 at its April 10, 2008 meeting after receiving testimony from Mr. Martin Eichner, Director of Dispute Resolutions for Project Sentinel, the City of Palo Alto’s facilitation administrator. He stated that, although the Mandatory Response Ordinance continues to receive excellent satisfaction ratings from both tenants and landlords who participated in the sessions, he has concluded the program has been underutilized in Palo Alto, with only 30 cases in 2005, 29 cases in 2006 and 27 cases in 2007. Additional comparison data to other cities is in the attached City Manager’s Report: 297:08 (Attachment A). In addition, the HRC suggested that staff develop a communication plan for conveying the requirements of the ordinance to landlords that would include the following elements:  Communication using e-mail, website, or other means targeting all landlords encouraging them to register and educating them about the ordinance;  Similar notification about the ordinance targeting landlords already registered;  A 90 day grace period for all landlords to register and comply with the ordinance. Upon adoption of the amended ordinance, staff will develop a communication plan in accordance with the HRC’s recommendation and present the draft plan to the HRC for review. A draft communication plan will be presented to the HRC sixty days after the ordinance amendment is approved by the City Council. The Policy and Services Committee considered this item on July 8, 2008. During the meeting, a member of the public questioned the applicability and consistency of sections 9.72.030 and 9.72.050 of Chapter 9.72 related to rental property registration. These provisions appear to contradict each other. However, Section 9.72.050 creates definitions for the purposes of property registration only and these are different from the definition in Section 9.72.030 (applicable to the whole chapter). As registration raises a different issue from notice of the right to mediate, staff will review the registration issue separately and return to Council and Commissions for modifications as necessary. This will allow the mediation changes to move forward. ENVIRONMENTAL REVIEW Approval of this amendment to PAMC section 9.72.070 does not require review under the California Environmental Quality Act (CEQA) because it does not meet the definition of “project” pursuant to California Public Resources Code Section 21065. ATTACHMENTS Attachment A: CMR 297:08 Human Relations Commission Recommendation to amend Palo Alto Municipal Code chapter 9.72 (Mandatory Response to Requests CMR:137:09 Page 3 of 3 for Discussion of Disputes between Landlords and Tenants) to void rent increases given without required notice of the tenant’s rights to mediation Attachment B: Ordinance Amending Section 9.72.070 Of Chapter 9.72 [Mandatory Response To Request For Discussion Of Disputes Between Landlord And Tenants ] Of Title 9 Of The Palo Alto Municipal Code To Void Rent Increases Given Without Notice Of The Right To Mediation Attachment C: Minutes of the April 10, 2008 Human Relations Commission meeting Attachment D: Minutes of the July 8, 2008 Policy and Services Committee meeting PREPARED BY: ____________________________________________________ KATHY ESPINOZA-HOWARD Division Manager, Cubberley Center and Human Services DEPARTMENT APPROVAL: _________________________________________ GREG BETTS Interim Director of Community Services CITY MANAGER APPROVAL: ________________________________________________ JAMES KEENE City Manager