HomeMy WebLinkAboutResolution No. 6142RESOLUTION NO. 6142
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
SAN RAFAEL PROPOSING AMENDMENTS TO THE CHARTER
OF THE CITY OF SAN RAFAEL, AND AN AMENDMENT TO
THE MUNICIPAL CODE OF THE CITY OF SAN RAFAEL,
AND SUBMITTING THE SAME TO THE ELECTORS OF SAID
CITY AND ORDERING THE PUBLICATION THEREOF
IT IS HEREBY RESOLVED BY THE COUNCIL OF THE CITY OF
SAN RAFAEL, CALIFORNIA, AS FOLLOWS:
SECTION A. The Council of the City of San Rafael, California, on its
own motion, hereby proposes that the Charter of the City of San Rafael,
California, be amended by amending Sections I and II of Article VI,
which amendments shall be effective at 12:00 Midnight prior to the
next General Municipal Election in 1983, so as to make the Office of
City Attorney appointive rather than elective, as follows:
SECTION B.
Section I of Article VI be amended so as to delete
therefrom the following words: "a city attorney".
Section II of Article VI be amended so as to
insert between the words "a chief of Police" and
the words "a city treasurer" the following:
"a city attorney".
Upon petition signed by 15 percent of the registered
voters of the City of San Rafael, it is hereby proposed that the
Charter of the City of San Rafael, California, be amended by adding
a new article, Article XVIII, as follows:
ARTICLE XVIII. ARBITRATION FOR FIRE AND POLICE
DEPARTMENT EMPLOYEES.
Section 1. The City, through its duly authorized
representatives, shall negotiate in good faith
with the recognized employee organizations on
terms and conditions of employment, in two bar-
gaining units composed of all employees of the
Fire Department, and all employees in the Police
Department, respectively, excepting only the
chi efs of each department.
Section 2. When an impasse has been reached
in negotiations with either the recognized fire
or police employee organization, all unresolved
disputes or controversies shall be submitted to
a Board of Arbitrators. An impasse may be de-
clared by either the City or the recognized em-
ployee organization involved in the controversy.
Section 3. Representatives designated by the
City and representatives of the recognized employee
organization involved in the controversy shall
each select one arbitrator to the Board of
Arbitrators. The third Arbitration Board member
ORIWINAL Ul Ay
shall be selected by the City and the employee
organization, and shall act as chairman. In the
event that the two arbitrators selected by the
City and the employee organization cannot agree
upon the selection of the third arbitrator within
five (5) days from the date of any impasse de-
clared, then the California State Conciliation
Service shall be requested by either party to
nominate seven (7) persons, all of whom shall
be qualified and experienced as labor arbitrators.
If the two arbitrators selected by the parties
cannot agree on one of the seven (7) to act as
arbitrator, they shall alternately strike names
from the list of said nominees until the name
of one nominee remains, who shall become the
impartial third member and chairman of the
Arbitration Board.
Section 4. The arbitration proceedings herein
provided shall be governed by Sections 1280
et sequitur of the California Code of Civil
Procedure. The award of the Board of Arbitrators
shall be submitted in writing and shall be
final and binding on all parties. Every effort
shall be made to secure an award from the
Board of Arbitrators within thirty (30) calendar
days after submission of all issues. The
expenses of arbitration, including the fee
for the services of the chairman of the Board,
shall be borne equally by the parties. All
other expenses which the parties may incur
individually are to be borne by the party
incurring such expenses.
Section 5. The City and the recognized employee
organization shall take whatever action is nec-
essary to carry out and effectuate the award.
Until an agreement is reached between the parties,
or a determination is made by the Board of
Arbitrators on any controversy or dispute, no
existing benefit or employment condition applicable
to the said employees shall be altered or changed.
Section 6. In any arbitration proceeding involving
interest disputes, the Board of Arbitrators is
directed to take into consideration the purpose
and policy of maintaining wages, hours, and other
terms and conditions of employment which are fair
and competitive with comparable private and public
employment and which are responsive to changing
conditions and changing costs and standards of
living. The Board of Arbitrators shall also consider
the interest and welfare of the public and the
availability and sources of funds to defray the
cost of any changes in wages, hours and conditions
of employment. The Board shall also consider such
other factors,not confined to the foregoing,
which are normally or traditionally taken into
consideration in the determination of employment
condition through voluntary collective bargaining,
mediation, fact finding and arbitration, in public
service or in private employment.
Section 7. The City may by resolution enter into
agreements with the recognized employee organiza-
tions providing for mediation, fact finding, last
best offer arbitration or any other agreed upon
method of finally resolving interest disputes.
- 2 -
SECTION C. Upon petition signed by 10 percent of the registered -voters
of the City of San Rafael, it is hereby proposed that the San Rafael
Municipal Code be amended by adding an Ordinance, as Title 20,
establishing rent control and a Rent Control Board, and which requires
just causes for eviction, per Exhibit A attached.
SECTION D. The Council of the City of San Rafael proposes to, and does
on its own motion, submit to the qualified electors of the City of
San Rafael, California, at the General Municipal Election to be held
on the 3rd day of November, 1981, the proposal to amend the Charter
of the City of San Rafael, California, as set forth in Section A.
above.
SECTION E. The City Council of the City of San Rafael submits to the
qualified electors of the City of San Rafael, California, at the
General Municipal Election to be held on the 3rd day of November, 1981,
the proposals to amend the Charter and the Municipal Code of the City
of San Rafael, California, as set forth in Sections B. and C.
respectively, above.
SECTION F. The City Clerk of the City of San Rafael is hereby ordered
and directed to cause all of said amendments to be published once,
not later than 40 and not more than 60 days prior to the date of the
General Municipal Election to be held on the 3rd day of November,
1981, in the Independent -Journal, the official newspaper of said City,
in each edition thereof during the day of publication, said newspaper
being a newspaper of general circulation published at least six days
a week in said City of San Rafael, California.
I, JEANNE M. LEONCINI, Clerk of the City of San Rafael,
hereby certify that the foregoing Resolution was duly and regularly
adopted at a regular meeting of the Council of the City of San Rafael,
held on Monday, the 20th day of July, 1981, by the following
vote, to wit:
AYES: COUNCILMEMBERS: Breiner, Jensen., Mi.skimen, Nixon & Mayor Mulryan
NOES: COUNCILMEMBERS: None
ABSENT: COUNCILMEMBERS: None
ANNE M. LEONCINI, City Clerk
- 3 -
ORDINANCE NO.
AN ORDINANCE OF THE CITY OF SAN RAFAEL ADDING EXHIBIT A
TITLE 20, RENT CONTROL AND JUST CAUSE EVICTION,
TO THE SAN RAFAEL MUNICIPAL CODE
THE PEOPLE OF THE CITY OF SAN RAFAEL DO ORDAIN AS FOLLOWS:
Section 1. Statement of Purpose. A growing shortage of housing units resulting In a low vacancy rate and rapidly rising rents exploiting this shortage constitutes a
serious housing problem affecting no lives of a substantial portion of those Marin County residents who reside in residential housing. In addition, speculation in
the purchase and sale of existing residentlal housing units results in further rent Increases. These conditions endanger the public health and welfare of Marin
County tenants, especially tha poor, minorities, the young and the elderly. The purpose of this Article or Ordinance therefore, is to alleviate this hardship caused
by this serious housing shortage by establishing a Rent Control Board empowered to regulate rentals in the aforementioned city or county so that rents will not be
Increased unreasonably and so that landlords will receive no more than a fair return on their Investment.
Seztlon 2. Definitions: The following words or phrases as used In this Article or Ordinance shall have the following meanings:
a) Board: The term "Board" refers to the elected Rent Control Board established by this Article or Ordinance.
b). Commissioners: The members of the Interim Rent Control Board and' he members of the Permanent Rent Control Board are denominated "Commissioners."
c). Controlled Rental Units: All residential units In the aforementioned city or county including mobile homes and mobile home spaces, and trailers and trailer
spaces, except:
1. Rental units In hotels, motels, inns, tourist homes and rooming and boarding houses which are rented primarily to transient guests for a period of less than
fourteen(14)days.
2. Rental units In any hospital, extended medical care facility, non-profit home for the aged, convent, monastery, or dormitory owned and operated by an
Institution of higher education.
3. Rental units which a government unit, agency or authority owns, operates, or manages; or in which governmentally subsidized tenants reside only it appli-
cable Federal or State Law or administrative regulation specifically exempts such units from municipal rent control.
4. Rental units, the owner(s) of which 1) own three dwelling units or less In the County of Marin, and 2) occupy one of the units as their principal residence.
5. Rental units which are constructed after the adoption of this Article or Ordinance shall be exempted for a period of five (5) years. However, this exemption
does not apply to rental units created as a result of conversion as opposed to new construction.
6. Rental units which are subject to a fixed term lease or agreement In effect on the effective date of this Article or Urdinance, until the tease or agreement
expires or Is terminated; provided that a unit rented under a fixed term lease or agreement entered Into between March 241981 and the effective date of this Article
or Ordinance shall be controlled. unless the landlord, on petition to the Rent Control Board can show that the fixed term lease or agreement was not entered into to
circumvent the provisions of this Art?n!e or Ordinance.
d) Housing Service: Housing services Include but are not limited to repairs, maintenance, painting, providing tight, hot and cold water, elevator service, window
shades and screens, storage, kitcnen, bath and sundry facilities and privileges, janitor services, refuse removal, furnishings, parking and any other benefit,
privilege or facility connected with the use or occupancy of any rental unit. Services to a rental unit shall Include a proportionate part of services provided to
common facilities of the building In which the rental unit Is contained.
o) Landlord: An owner, lessor, subiessor or any other person entitled to receive rent in exchange for the use and occupandy of any rental unit, or an agent,
representative or successor of any of the foregoing. -
f) Rent All periodic payments ano a i nonmonetary consideration, including but not limited to, the fair market value of goods or services rendered to or for the
benefit of the landlord under an agreement concerning the use or occupancy of a rental unit and premises, Including all payments and considerations demanded
or paid for such as parking, pets, Tur7ishings, subletting, and security deposits for cleaning and or damages.
g) Rental Housing Lease or Agreement A legal contract, oral, written, or Implied, between a landlord and a tenant for use or occupancy of a rental unit and for
housing services.
h) Rental Units: Any building, structure, or part thereof, or land appurtenant thereto, or any other rental property rented or offered for rent for living or dwelling,
house units and other rental real properties used for living or dwelling purposes, together with all housing services connected with use or occupancy of such
property such as common areas and recreational facilities held out for use by the tenant.
1) Tenant: A tenant, subtenant, lessee, sublessee or any other person entitled under the terms of a rental housing lease or agreement to the use or occupancy of
any rental unit.
j'; Recognized Tenant Organization: Any group of tenants who requests to be so designated.
k) Rent Calling: Rent ceiling refers to the limit on the maximum allowable rent which a landlord may charge on any controlled rental unit.
1) Bass Rent Calling: The maximum allowable rent established in Section 5. (b).
Section 3. Interim Rent Control Board:
a) No later than thirty (30) days after the adoption of this Article or Ordinance, the aforementioned City Councilor County Board of Supervisors shall appoint a five
(5) member Interim Rent Control Board. No person shall be appointed to the Interim Rent Control Board unless he or she is a duly qualified elector of the
aforementioned City or County as determined by the County Registrar of Votors. The Interim Rent Control Board shall exercise the following powers and duties
until the Permanent Rent Control Board !selected in accordance with the provisions of Section 4. (d) and assumes office:
1. Shall require registration of all controlled rental units under Section 4.(q).
2. Shall seek criminal penalties uncer Section 11.
3. Shall seek injunctive relief under Section 12.
4. Shall grant rent adjustments in [nose extraordinary circumstances of extreme hardship.
5. Shall enforce any and all of the provisions of this Article or Ordinance.
(b) No later than fifteen (15) days after their appointment the five (5) member Interim Rent Control Board shall hold their first meeting
Section 4. Permanent Rent Control Board:
a) Composition: There shall be in the aforementioned City or County a Rent Control Board. The Board shall consist of five elected Commissioners. The Board shall
elect annually as chairperson one of Its members to serve in that capacity.
b) Eligibility: Duly qualified electors of the aforementioned City or County are eligible to serve as Commissioners of the Board.
c) Full Disclosure of Holdings: Candidates for the position of Commissioner shall submit a verified statement listing all of their Interests and dealings in real
property, Including but not limited to Its ownership, sale or management, during the previous three (3) years.
d) Election of Commisslorram Cc nmissioners shall be elected at general elections In the same manner as set forth In Article of the Marin County Charter, except
that the first Commissioners shall be elected at a special election held within one hundred sixty (160) days of the adoption of this Article or Ordinance. The elected
Commissioners shall take office on the first Tuesday fallowing their election.
a) Tenn of Office: Commisslonen shall be elected to serve terms of four years, beginning on the first Tuesday following their election, except that of the first five
Commissioners elected In accorc ncs with Sactlon 4(d), the two Commissioners receiving the most votes shall serve terms of four years, and the remaining three
Commissioners shall serve terms of two years. Commissioned shall serve a maximum of two full terms.
f) Pourers and Duties: The Board shah have the following powers and duties:
1) Set the rent ceilings for all controlled rental units.
2) Require registration of all controlled rental units under Section 4(q).
3) Establish a base ceiling on rents under Section 5(b).
Page 1
4) Mane adjustments in tnrrent ceiling In accordance with Section 6.
5) Set rents at fair and equitable levels In order to achieve the Intent of this Article or Ordinance.
6) Hire and pay necessary staff, Including hearing examiners and personnel to Issue orders, rules and regulations, conduct hearings and charge fees as set
forth below
7) Make such studies, surreys and Investigations, conduct such hearings, and obtain such Information as is necessary to carry out Its powers and duties.
8) Report annually to the atorementloned City Councilor County Board of Supervisors.
9) Remove rent controls uncer Section a(r).
10) Issue permits for removal of cont•olled rental units from the rental housing market under Section 4(t).
11) Administer oaths ana-affirmaticns and subpoena witnesses.
12) Establish rules anc regulations for deducting penalties and setting civil claims under Section 10.
13) Seek criminal penalties undar Section 11.
14) See Injunctive ralle* under Section 12.
15) All powers reasoname and necessary to comply with the spirit of the law.
g) Rules and Regulations:—ne Board shall Issue and follow such rules and regulations, Including those which are contained In this Article or Ordinance, as will
further the purposes of tre Article or Ordinance. The Board shall publicize Its rules and regulations prior to promulgation in at least one newspaper of general
circulation In the County or Merin. The Board shall hold at least one (1) public hearing to consider the views of Interested parties prior to the adoption of general
adjustments of the ceilings for maximum allowable rents under Section 6 and any decision to decontrol or re -impose control for any class of rental units under
Section 4(r). All rulew7 and regulations, internal staff memoranda, and written correspondence explaining the decisions, orders, and policies of the Board shall be
kept In the Board's office and shell be available to the public for Inspection and copying. The Board shall publicize this Article or Ordinance so that all residents of
the aforementioned City or County will have the opportunity to become Informed about their legal rights and duties under rent control in the aforementioned City
or County. The Board sha!l orsoare a brochure which fully describes the legal rights and duties of landlords and tenants under rent control In the aforementioned
City or County. The brocnure-will be made available to the public, and each tenant of a controlled rental unit shall receive a copy of the brochure from his or her
landlord.
h) Meetings. The Board snail hold at least forty-eight (48) regularly scheduled meetings per year. Special meetings shall be called at the request of at least three
Commissioners of the Board. The Board shall hold its initial meetings no later than fifteen (15) days after taking office.
1) Quorum: Three Commissioners shall constitute a quorum for the Board.
J) Voting: The affirmative vote of three Commissioners of the Board Is required for a decision, including all motions, regulations, and orders of the Board.
k) Compensation: Each Commissioner shall receive for every meeting attended fifty dollars ($50.00), but In no event shall any Commissioner receive in any twelve
month period mors than thirty five hundred dollars ($3500) for services rendered.
1) Dockets: The Board shall maintain and keep in its office all hearing dockets.
m) Vacancies: If a vacancy shall occur on the Board, the Board shall within thirty (30) days appoint a qualified person to fill such a vacancy until the following
general election, when a qualified person shall be elected to serve for the remainder of the term.
n) Financing: The Board shall finance Its reasonable and necessary expenses by charging landlords annual registration fees in amounts deemed reasonable by
the Board. The first annual registrai9on fee shall be set by the Board within thirty (30) days after assuming office. The Board is also empowered to request and
receive funding, when and if necessary, from any available source for its reasonable and necessary expenses. Notwithstanding the preceding provisions of this
paragraph, the aforementlored City Council or County Board of Supervisors shall appropriate sufficient funds for the reasonable and necessary expenses of the
Interim Board and Permanent Hoard during the six month period following adoption of this Article or Ordinance.
0) Racal[: Commissioners maybe recalled in accordance with the provisions of the city or county ordinance or article pertaining to recall.
p) Staff: The Board shall employ and pay such staff, Including hearing examiners and inspectors, as may be necessary to perform Its functions efficiently in order
to fulfill the purposes of this Article or Ordinance.
q) Ryglstratlon: Within sixty ..50) days after the adoption of the Article or Ordinance, the Board shall require the registration of all controlled rental units, which shall
be reregistered at times deemed appropriate by the Board. The Initial registration shall Include the rent in effect on the date of the adoption of thic, Article
or Ordinance, base rent ceiling, the address of the rental unit, the name and address of the landlord, the housing services provided to the unit, a statement
Indicating all operating cost increases since the base rent ceiling date, and any other information deemed relevant by the Board. The Board shall require the
landlord to report vacancies in the controlled rental units and shall make a list of vacant controlled rental units and shall make a list of vacant controlled rental
units available to the public. If the Board, after the landlord has proper notice and after a hearing, determines that a landlord has willfully and knowingly failed to
register a controlled rental unit, the Board may authorize the tenant of such a non -registered controlled rental unit to withhold all or a portion of the rent for the unit
until such time as the rental unit is properly registered. After a rental unit is properly registered, the Board shall determine what portion, if any, of the withheld rent
is o•Ned to the landlord for the oerlod In which the rental unit was not properly registered. Whether or not the Board allows such withholding, no landlord who has
failed to register properly sha:l at any time increase rents for a controlled rental unit until such units are properly registered.
r) Decontrol: If the average annual vacancy rate in any category, classification, or area of controlled rental units exceeds five percent (5%), the Board is
empowered, at Its discretior* and in order to achieve the objectives of this Article or Ordinance, to remove rent controls from such category, classification or area.
The Board may deterr:tne such categories, classifications, or areas for purposes of decontrol consistent with the objectives of this Article or Ordinance. In
determining the vacancy rate for any category, classification or area of controlled rental units, the Board shall consider all available data and shall conduct Its
own survey. If units are =econtro[Ied pursuant to this subsection, controls shall be reimposed if the Board finds that the average annual vacancy rate has
thereafter fallen below',ve percent (5%) for such category, classification or area.
s) Security Deposits: Ary cayment or deposit of money the primary function of which Is to secure the performance of a rental agreement or any part of such
agreement, including an advance payment or deposit of rent, shall be placed in an Interest-bearing account at an institution whose accounts are Insured by the
Federal Saving and Loan Insurance Corporation until such time as it is returned to the tenant or entitled to be used by the landlord. The interest on said account
shall be used by the landlord to offset operating expenses and shall be a factor in making individual rent adjustments under Section 6. In lieu of complying with
this requirement, the lanelord must pay Interest directly and regularly to the tenant In accordance with the requirements of any state law.
t) P.emoval of Controlled Rental Unit from Rental Housing Market: Any landlord who desires to remove a controlled rental unit from the rental housing market by
domolit!on, conversion or other means is required to obtain a permit from the Board prior to such removal from the rental housing market In accordance with rules
and regulations Dromu;gatad by the Board. In order to approve such a permit, the Board is required to make each of the following findings:
1) That the control ed rental unit is not occupied by a person, or family of very low Income, low Income, or moderate Income.
2) *hat the rent of the contmi:ed rental unit is not at a level affordable by a person or family of very low Income, low Income, or moderate Income.
3) That the removal o4 the controlled rental unit will not adversely affect the supply of housing in the aforementioned City or County; and
4) That the landlord zanfrot -^ake a fair return on Investment by retaining the controlled rental unit.
Notwithstanding the foregoirg provisions of this subsection, the Board may approve such a permit:
1) If the Board finds that tre controlled rental unit is uninhabitable and is Incapable of being made habitable in an economically feasible manner, or
2) If the permit Is being sougnt so that the property may be developed with multifamily dwelling units and the permit applicant agrees as a condition of approval
that the new units will rct be exempt from the provisions of this Article or Ordinance pursuant to Section 2(c) and that at least fifteen percent (15%) of the
controlled rental units to be bLitt on the site will be at rents affordable by persons of low Income.
u) Displacement Cost:
1) Whenever the Board approves the permit under Section 4 (t), the landlord shall give the tenant written notice of such approval and six (6) months time period _
to vacate the premises. A tenant who is to vacate the premises due to the removal of a controlled rental unit from the rental housing market shall be compensated
by the landlord with two (2) times the highest monthly rent in effect during said tenant's occupancy. The tenant may demand payment any time after receipt of
Page! 2
notice'to �4icata. The landlord shall make payment to anant no later than two (2) weeks after recelpt of dema r payment
'2) The landlord must post the date for the removal or the rental unit from the rental housing market In a proml,tunt place in or about the affected rental unit six
(6) r onths prior to the date the unit is to be vacated, and shall give written notice of the date to the tenant who occupies the unit at the time the notice is posted, or
to any tenant who occupies the unit thereafter, until the unit is removed from the rental housing market.
3) If a tenant gives the landlord written notice of Intent to vacate a unit before the landlord gives the tenant written notice of the approval to remove the unit from
the rental housing market, the tenant shall not be eligible to receive compensation.
4) If a new tenant moves Into the unit and the date for the removal of the unit from the rental housing market has been posted, and the new tenant has received
written notice of the date prior to occupancy, the new tenant is not eligible to receive compensation.
5) The bad faith withholding by a landlord of payment of displacement costs shall subject the landlord to additional exemplary damages not to exceed five
hundred dollars (5500.00).
Section 5. Maximum Allowable Rents.
a) Temporary Freeze: Rents shaii not be increased during the one hundred twenty (120) day period following the date of adoption of this Article or Ordinance.
b) Establishment of Base Rent Caning: Beginning one hundred twenty (120) days after the adoption of this Article or Ordinance, no landlord shall charge rent for
any controlled rental units In an amount greater than the rent in effect on the date one year prior to the adoption of this Article or Ordinance. The rent in effect on
that date is the base rent ceiling and Is a reference point from which fair rents shall be adjusted upward or downward in accordance with Section 6. If there was no
rent in effect on the date one year prior to the adoption of this Article or Ordinance, the base rent ceiling shall be the rent that was charged on the first date that
rent was charged following the date one year prior to the adoption of this Article or Ordinance. In the case of units constructed after the adoption of the Article or
Ordinance, the base rent ceiling shall be the rent in effect one (1) year prior to the expiration of the five (5) year exemption period.
C) Posting: Within ninety (90) cava after the adoption of this Article or Ordinance, the landlord shall have ascertained the maximum allowable rent and shall post it
for each unit Ina prnininent place in or about the affected controlled rent units. The Board may require that other Information it deems relevant also be posted.
Section 6. individual and General Adjustment of Collings on Allowable Rants:
a) The Board may, after holding ;hose public hearings prescribed by Section 4(g), set and adjust upward or downward the rent ceiling for all controlled rental units
in general and/or for particular categories of controlled rental units deemed appropriate by the Board. Such an adjustment, however, need not take effect
Immediately, and the Board may decide that new rent ceilings shall not take effect until some reasonable date after the above -stated time periods.
b) Each year the Board shall generaily adjust rents as follows:
1. Adjust rents upward by grantinc landlords a utility and tax increase adjustment for actual Increases In the assessments for taxes and utilities.
2. Adjust rents upward by grantino landlords a maintenance increase adjustment for actual increases that are reasonable and necessary for maintenance
expenses.
3. Adjust rents downward by requiring landlords to decrease rents for any actual decreases in assessments for taxes.
4. In adjusting rents under this suosection, the Board shall adopt a formula of general application. This formula will be based upon a survey of landlords of the
Increases or decreases in the expenses set forth in the subsection.
c) Petitions: Upon receipt of a petition by a landlord and/or tenant, the maximum rent of individual controlled rental units may be adjusted upward or downward in
accordance with the procedures set forth elsewhere in the Section. The petition shall be on the form provided by the Board. Notwithstanding any other provision of
this section, the Board or hearing examiner may refuse to hold a hearing and/or grant a rent adjustment if an individual hearing has been held and decision made
with regard to maximum rent within the previous six months.
d) Hearing Procedure: The Board shaii enact rules and regulations governing hearings and appeals of individual adjustment of ceilings on allowable rents which
shall Include the following:
1. Hearing Examiner. A hearing examiner appointed by the Board shall conduct a hearing to act upon the petition for Individual adjustment of ceilings on
allowable rents and shall have the power to administer oaths and affirmations.
2. Notice and Right to be Heard: ,when a petition is fled by a tenant or a landlord the Board shall send a copy to the opposing party and notify all pprties of the
time, place and date of the hearing at least ten (10) days prior to the date of the hearing. All notices sent out by the Board shall be in English and Spanish. Hearings
shall be held within thirty (30) days of riling of the petition. All rent ceiling adjustment hearings shall be open to the public.
3. Time of Hearing: The hearing of -'car shall noWy all parties as to the time, date and place of the hearing.
4. Records: The hearing examiner may require and subpoena either party to a rent adjustment hearing to provide It with any information, books, records and
papers deemed pertinent' in addition to that information contained in registration statements. The hearing examiner shall conduct a current inspection and/or
request the City to conduct a current building inspection if the hearing examiner finds good cause to believe the Board's current Information does not reflect the
current condition of the controileo - n:ai unit. The tenant may request the hearing examiner to order such an Inspection prior to the date of the hearing. All
documents required under this Sect.on shall be made available to the parties involved prior to the hearing at the office of the Board. In cases where information
filed in a petition for rent ceiling adruS.ment or In additional submissions filed at the request of the hearing examiner is Inadequate or false, action may be delayed
on said petition until the deficlencv is remedied.
5. Open Hearings: All rent ceiling adjustment hearings shall be open to the public.
6. Right of Assistance: All paries to a hearing may have assistance in presenting evidence and developing their position from attorneys, legal workers,
recognized tenant organization representatives or any other persons designated by said parties.
7. Hearing Record: The Board shall make available for inspection and copying by any person an official record which shall constitute the exclusive record for
decision on the issues at the hear, rg. The record of the hearing, or any part of one, shall be obtainable for the cost of copying. The record of the hearing shall
Include: all exhibits, papers and documents required to be filed or accepted Into evidence during the proceedings; a list of participants present; a summary of all
testimony accepted In the proceedings; a statement of all materials officially noticed; all recommended decisions, orders and/or rulings; all final decisions, orders
and/or rulings, and the reasons for each final decision, order and/or ruling. Any party may have the proceeding tape-recorded or otherwise transcribed at his or her
own expense.
8. Quantum of Proof of Notice -end Decision: No Individual rent adjustment shall be granted unless supported by the preponderance of the evidence submitted
at the hearing. All parties to a hearing shall be notified within twenty (20) days from the hearing date of the decision and of findings of fact and law upon which said
decision is based. At the same t)me. parties to the proceedings shall also be notified of their right to any appeal allowed by the Board and/or judicial review of the
decision pursuant to this Section. a^r• Section 7 of this Article or Ordinance.
9. Consolidation: All landlord petitions pertaining to tenants in the same building will be consolidated for hearing, and all petitions filed by tenants occupying
the building shall be consolidated for hearing unless there is a showing of good cause not to consolidate such petitions.
10. Appeal: Any person aggrieved by the decision of the hearing examiner may appeal to the Board within twenty (20) days of receipt of decision rendered. The
appeal shall be heard within thirty (30) days of filing of the appeal and all parties to an appeal shall be notified of the decision within twenty (20) days of the hearing
on the appeal. On the appeal the Board shall affirm, reverse or modify the decision of the hearing examiner. The Board may conduct a de novo hearing or may act
on the basis of the record before the hearing examiner without holding a hearing.
11. Finality of Decision: The decision of the hearing examiner shall be the final decision of the Board In the event of no appeal to the Board. The decision of the
hearing examiner shall not be stayed pending appeal; however, in the event that the Board on appeal reverses or modifies the decision of the hearing examiner, the
landlord, in the case of an upward a(tustment In rent, or the tenant, In the case of a downward adjustment of rent, shall be ordered to make retroactive payments to
restore the parties to the position lhev would have occupied had the hearing examiner's decision been the same as that of the Board's.
12. Time for Decision: The rules and regulations adopted by the Board shall provide for final Board action an any Individual rent adjustment petition within one
hundred and twenty (120) days `oilowlrg the data of filing of the Individual rent adjustment petition.
13. Board Action In Lieu of Rsforenee to Hearing Examiner. The Board, on Its own motion or on the request of any landlord or tenant, may hold a hearing on an
Individual petition for rent adju3tment without the petition first being heard by a hearing examiner.
e) In making individual and general adjustments of the rent ceiling, the Board shall consider the purposes of the Article or Ordinance and shall specifically
consider all relevant factors Including but not limited to Increases or decreases in property taxes, unavoidable increases or decreases In operating and
maintenance, Increases or decreases in living space, furniture, furnishings or equipment, substantial deterioration of the controlled rental unit other than as a
result of ordinary wear and tear, failure on the part of the landlord to provide adequate housing services or to comply substantially with applicable housing, health
Page 3
! r ;
and sataty codes, federal and state income tax benefits, the speculative nature of the investment, whether or not the property was acquired or is held as a long
term or short term investment, and the landlords rate of return on Investment including appreciation in the value of property, federal and state tax advantage and
all other relevant factors.
f) No rent Increase shall be authorized by the Article or Ordinance because a landlord has a negative cash flow as the result of refinancing the controlled rental
unit If at the time the landlord refinanced, the landlord could reasonably have foreseen a negative cash flow based on the rent schedule then in existence within
the one year (1) period following refinancing. This paragraph shall only apply to that portion of the negative cash flow reasonably forseeable within the one year
period following refinancing of the controlled rental unit and shall only apply to controlled rental units refinanced after the date of adoption of this Article or
Ordinance.
g) No rent increase shall be authorized by this Article or Ordinance because a landlord has a negative cash flow if at the time the landlord acquired the controlled
rental unit, the landlord could reasonably have foreseen a negative cash flow based on the rent schedule then in existence within the one year period following
acquisition. This paragraph shall only apply to that portion of the negative cash flow reasonably foreseeable within the one year period fallowing acquisition of a
controlled rental unit and shall only apply to controlled rental units acquired after the date of adoption of this Article or Ordinance.
h) No landlord shall increase rent under this Section if the landlord:
1. Has failed to comply with any provisions of the Article or Ordinance and/or regulations issued thereunder by the Board, or
2. Has failed to comply substantially with any applicable state or local housing, health or safety law.
Section 7. Eviction:
No landlord shall bring any action to recover possession or be granted recovery of possession of a controlled rental unit unless:
a) The tenant has failed to pay the rent to which the landlord is entitled under the rental housing lease or agreement and this Article or Ordinance.
b) The tenant has violated an obligation or covenant of his or her tenancy other than the obligation to surrender possession upon proper notice and has failed to
remedy such violation after having received written notice thereof from the landlord in the manner required by law.
c. The tenant is committing or expressly permitting a nuisance In, or is causing substantial damage to, the controlled rental unit, or is creating a substantial
Interference with the comfort, safety or enjoyment of another tenant or other tenants, occupants, neighbors of the same, and or of the landlord.
d. The tenant is convicted of using or expressly permitting a controlled rental unit to be used for any illegal purpose.
e. The tenant, who had a rental housing lease or agreement which has terminated, has refused, after written request or demand by the landlord, to execute a
written extension or renewal thereof fora further term of like duration and in such terms as are not Inconsistent with or violative of any provisions of this Article or
Ordinance and are materiallyt'ne same as in the previous agreement.
f. The tenant has refused :ne landlord reasonable access to the controlled unit for the purpose of making necessary repairs or improvements required by the laws
of the United States, the State of California or any subdivision thereof, or for the purpose of showing the rental housing unit to any prospective purchaser or
mortgagee.
g) The tenant holding at the and of the term of the rental housing agreement is a sub -tenant not approved by the landlord if such approval is required under the
provisions of a binding agreement.
h.The landlord seeks to recover possession to demolish or otherwise remove the controlled rental unit from residential rental housing use after having obtained all
proper permits from the apphcaoie city and county, offices and agencies. Notwithstanding the above provisions, possession shall not be granted to the landlord if
It is determined that the evictren is in retaliation for the tenant having reported violations of this Article or Ordinance, or for exercising rights granted under this
Article or Ordinance and or under federal, state, or local laws. These rights shall include that of the right to withhold rent upon authorization of the Rent Control
Board under Section 4(q) or Sac:;on 10, the right to organize other tenants, and the right to freedom from acts which constitute discrimination based on race, color,
religion, national origin, sex, aqe, marital status, presence of children, physical and/or mental handicap, source of income, or any other arbitrary classification.
Such retaliation, dlscrimi^a:ion, or arbitrary conduct shall subject the landlord to suit for actual and punitive damages, injunctive relief, and reasonable costs and
attorney's fees.
I) In any action brought to recover possession of a controlled rental unit, the landlord shall allege and prove compliance with this Section.
Section 8. Non-Welverabiiifv
Any provision, whether oral or written, in or pertaining to a rental housing agreement whereby any provision of this Article or Ordinance for the benefit of the tenant
Is waived, shall be deemed to oe against public policy and shall be void.
Section 9. Judicial Review:
A landlord or tenant aggrievec by any action or decision of the Rent Control Board may seek judicial review by appealing to the appropriate court within the
jurisdiction.
Section 10. Civil Remedies:
a) Any landlord who demands, accepts, receives, or retains any payment of rent in excess of the maximum lawful rent, in violation of the provisions of this Article
or Ordinance or any rule, regulation or order hereunder promulgated, shall be liable as hereinafter provided to the tenant from whom such payments are demanded,
accepted, received or retained, for reasonable attorney's fees and costs as determined by the court, plus damages in an amount of five hundred dollars (5500) or
three (3) times the amount by which the payment or payments demanded, accepted, received or retained exceeds the maximum lawful rent, whichever is the
greater.
b. The Rent Control Board shall establish by rule and regulation a hearing procedure similar to that set forth In Section 6(d) for determination of the amount of the
penalty the tenant is entitled to pursuant to Section 10(a). After said determination, the tenant may deduct the penalty from future rent payments In the manner
provided by the Board, or the -Board may order the landlord to pay the excess amount directly to the tenant. This remedy is an alternate to the filing of a civic suit by
a tenant under Subsection (a1_
c. Deduction of Excess Amounts from Rent: A tenant who has paid more than the maximum rent authorized by Section 5 or Section 6, shall be entitled to a refund
In the amount of the excess payment. A tenant may elect to deduct such amount of the refund due from his or her future rent payments, rather than pursuing the
remedy provided in subsection (b) of this Section, provided that the tenant informs the landlord, in advance, in writing of his or her Intention to do so. A tenant shall
not be penalized by his or her landlord for deducting refunds pursuant to this subsection.
d) If the tenant from whom such excessive payment is demanded, accepted, received or retained in violation of the foregoing provisions of this Article or
Ordinance or any rule or regt.ravon or order hereunder promulgated fails to bring a civil or administrative action as provided for in Section 10(a) and 10(b) within one
hundred and twenty (120) days from the date of the occurrence of the violation, the Board may settle the claim arising out of the violation or bring such action.
Thereafter, the tenant on whose behalf the Board acted is barred from also bringing an action against the landiom to, r9gard to the same violation for which the
Board has made a settlement or brought an action. In the event the Board settles said claim, It shall be entitled to retain trta c, -:q it incurred in settlement thereof,
and the tenant against whom the violation has been committed shall be entitled to the remainder.
e) The appropriate court in the jurisdiction in which the controlled rental unit affected is located, shall have jurisdiction over all acti,;-, -aught under this
Section.
Section 11: Criminal Remedies:
Any landlord violating this Article or Ordinance shall be guilty of a misdemeanor. Any landlord convicted of a misdemeanor under the provisions of this Article .
Ordinance shall be punished by a fine of not more than five hundred dollars (5500), or by imprisonment in the county jail for a period not exceeding six (6) months,
or by both such fine and Imprisonment.
Section 12. Injunctive Rvllef:
The Board, and tenants and landlords of controlled units, may seek relief from the appropriate court within the jurisdiction within which the affected controlled
rental unit Is located to restrain or enjoin any violation of this Article or Ordinance and of the rules, regulations, orders and decisions of the Board.
Section 13. Partial Invalldity
If any provision of this Art.cle or Ordinance or application thereof to any person or circumstances is held invalid, this invalidity shall not affect other provisions or
applications of this Article or Ordinance which can be given effect without the invalid provision or application, and to this and the provisions of this Article or
Ordinance are declared to be severable. This Article or Ordinance shall be liberally construed to achieve the purposes of this Article or Ordinance and to preserve
Its validity.
Page 4
Section 14. Date of effect. This ordinance shall take effect ten (10) days after the
date the vote is decided by the legislative body, as provided in Section 4013 of the
Elections Code.
Attest:
JEANNE M. LEONCINI, City Clerk
LAWRENCE E. MULRYAN, Mayor
Page 5