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Rental Housing Committee

Regular Meeting

Mountain View, CA · March 26, 2018

AgendaMinutes

Minutes

CITY HALL City of Mountain View 500 CASTRO STREET Minutes Rental Housing Committee Committee Members Grunewald, Means, Ramos and Pardo de Zela (alternate), Vice Chair Ortiz, and Chair Honey Monday, March 26, 2018 6:00 PM Plaza Conference Room and Council Chambers 1. CLOSED SESSION (to be held in the Plaza Conference Room) 2. CLOSED SESSION 2.1 CONFERENCE WITH LEGAL COUNSEL –ANTICIPATED LITIGATION Closed Session recessed at 6:25 p.m. 3. REGULAR SESSION (to be held in Council Chambers) The meeting was called to order at 6:36 p.m. 4. CALL TO ORDER 5. ROLL CALL Present: 5- Vice Chair Ortiz, Chairperson Honey, Committee Member Grunewald, Committee Member Ramos, and Committee Member Means Absent: 1- Pardo de Zela (alternate) 6. MINUTES APPROVAL 6.1 Approve the minutes for February 26, 2018 RHC Meeting MOTION; M/S - Ramos/ Means - To approve the minutes for February 26, 2018 Yes: 5- Vice Chair Ortiz, Chairperson Honey, Committee Member Grunewald, Committee Member Ramos, and Committee Member Means 7. ORAL COMMUNICATIONS FROM THE PUBLIC No comments were received from the public. 8. PUBLIC HEARING 9. UNFINISHED BUSINESS 10. NEW BUSINESS City of Mountain View Page 1 Rental Housing Committee Minutes March 26, 2018 10.1 Professional Services for the Implementation of the CSFRA for Upcoming Fiscal Year Provide direction to staff regarding procurement of professional services for the upcoming fiscal year. City Attorney Quinn presented an oral report and responded to questions. SPEAKING FROM THE FLOOR WITH COMMENTS: Curtis Conroy Fred Kiani Elizabeth Lindsay Patty Kong Emily Hislop MOTION: M/S - Honey/Means - To start an RFP process for professional services for the implementation of the CSFRA for the upcoming fiscal year. Yes: 3- Chairperson Honey, Committee Member Grunewald, and Committee Member Means No: 2- Vice Chair Ortiz, and Committee Member Ramos 10.2 Authorization to Execute an Agreement with Goldfarb & Lipman for Legal Services for FY 2017-18 Associate Planner Van Deursen presented an oral report and responded to questions. SPEAKING FROM THE FLOOR WITH COMMENTS: Curtis Conroy Fred Kiani Jeff Gilman Edie Keating Alex Nunez Trey Bornmann MOTION: M/S - Ortiz/ Honey - To authorize the Acting Program Manager to execute an agreement with Goldfarb & Lipman LLP for legal services related to the Community Stabilization and Fair Rent Act for Fiscal Year 2017-18 in an amount not to exceed $200,000 Yes: 5- Vice Chair Ortiz, Chairperson Honey, Committee Member Grunewald, Committee Member Ramos, and Committee Member Means 10.3 CSFRA Annual Rental Housing Fee collection overview Finance and Administrative Services Director Kong presented an oral report and responded to questions. SPEAKING FROM THE FLOOR WITH COMMENTS: Edie Keating City of Mountain View Page 2 Rental Housing Committee Minutes March 26, 2018 The RHC heard a presentation on the status of the Annual Rental Housing Fee collection. 10.4 CPI Indices and the CSFRA Karen tiedemann, Special Counsel, Goldfarb and Lipman, presented an oral report and responded to questions. SPEAKING FROM THE FLOOR WITH COMMENTS: Curtis Conroy Joe Maydak Elizabeth Lindsay Alex Nunez Edie Keating MOTION: M/S Means/Honey - To adopt a resolution identifying that the Consumer Price Index - All Urban Consumers, San Francisco-Oakland-Hayward region (currently designated as Series ID: CUURS49BSA0 by the U.S. Department of Labor, Bureau of Labor Statistics) shall be the designated successor index applicable for determining future Annual General Adjustments in accordance with CSFRA section 1707(a); and that Regulation Chapter 6, section 6(C)(4) shall be deleted in its entirety and replaced with the following text: Consumer Price Index. Consumer Price Index is the Consumer Price Index - All Urban Consumers for "Rent of primary residence" in San Francisco-Oakland-Hayward region (currently designated as Series ID: CUURS49BSEHA by the U.S. Department of Labor, Bureau of Labor Statistics). a. Base Year Consumer Price Index. The Consumer Price Index for the Base Year shall be the annual average of the Consumer Price Index for 2015 (371.075, unless revised by the Bureau of Labor Statistics). b. Petition Year Consumer Price Index. The Consumer Price Index for the Petition Year shall be the Consumer Price Index that was most recently published as of the date a Petition for Upward Adjustment of Rent is submitted. Yes: 3- Chairperson Honey, Committee Member Grunewald, and Committee Member Means No: 2- Vice Chair Ortiz, and Committee Member Ramos The Committee recessed at 8:19 p.m. and reconvened at 8:31 p.m. 10.5 Annual General Adjustments Pre-February 2016 and Post 2017 City of Mountain View Page 3 Rental Housing Committee Minutes March 26, 2018 Justin Bigelow, Special Counsel, Goldfarb and Lipman, presented an oral report and responded to questions. SPEAKING FROM THE FLOOR WITH COMMENTS: Emily Hislop Joe Maydak Elizabeth Lindsay Jeff Gilman Fred Kiani Nan McGarry Trey Bornmann Job Lopez Alex Nunez MOTION: M/S - Honey/Grunewald - To bring back appropriate language to implement a bankable rent increase based on CPI for a 318 day period and to explore options to address certain situations where an increase may not be applicable. Yes: 3- Chairperson Honey, Committee Member Grunewald, and Committee Member Means No: 2- Vice Chair Ortiz, and Committee Member Ramos 10.6 CSFRA Monthly Status Report February 2018 Administrative Analyst Black presented an oral report and responded to questions. SPEAKING FROM THE FLOOR WITH COMMENTS: The RHC heard a presentation regarding the CSFRA monthly status report for February 2018. 11. COMMISSION/STAFF ANNOUNCEMENTS, UPDATES, REQUESTS, AND COMMITTEE REPORTS Member Ramos confirmed with RHC members the Committees attendance to the Mountain View Downtown Spring Parade 12. CLOSED SESSION REPORT Karen Tiedemann, Special Counsel, Goldfarb and Lipman, announced that the RHC discussed a letter they received regarding potential litigation from Fenwick and West demanding the RHC reconsider its February 26, 2018 resolution regarding the applicability of the CSFRA to Mobile Homes and Mobile Home spaces. The RCH voted to decline to reconsider the motion. City of Mountain View Page 4 Rental Housing Committee Minutes March 26, 2018 YES: 3 - Chairperson Honey, Committee Member Grunewald, and Committee Member Means No: 1 - Committee Member Ramos Abstain: 1 - Vice Chair Ortiz 13. ADJOURNMENT - At 10:40 p.m., Chair Honey adjourned the meeting to the next RHC meeting to be held on Monday, April 23, 2018 at 7:00 p.m. in the Council Chambers, 500 Castro Street. City of Mountain View Page 5

Agenda

CITY HALL 500 CASTRO STREET City of Mountain View Agenda Rental Housing Committee Committee Members Grunewald, Means, Ramos and Pardo de Zela (alternate), Vice Chair Ortiz, and Chair Honey Monday, March 26, 2018 6:00 PM Plaza Conference Room and Council Chambers 1. CLOSED SESSION (to be held in the Plaza Conference Room) 2. CLOSED SESSION 2.1 CONFERENCE WITH LEGAL COUNSEL –ANTICIPATED LITIGATION Significant exposure to litigation pursuant to paragraph (2) of subdivision (d) of Section 54956.9. (One potential case) 3. REGULAR SESSION (to be held in Council Chambers) 4. CALL TO ORDER 5. ROLL CALL Chair Vanessa Honey, Vice Chair Evan Ortiz Committee Members Matthew Grunewald, Tom Means, Emily Ramos, Julian Pardo de Zela (alternate) 6. MINUTES APPROVAL 6.1 Approve the minutes for February 26, 2018 RHC Meeting Recommendation: Copies of the minutes for the above-noted meeting have been delivered to Committee Members and copies are available at City Hall. If there are no corrections or additions, a motion is in order to approve these minutes. Attachments: Minutes for February 26, 2018 7. ORAL COMMUNICATIONS FROM THE PUBLIC This portion of the meeting is reserved for persons wishing to address the Committee on any matter not on the agenda. Speakers are limited to three minutes. State law prohibits the Committee from acting on non-agenda items. 8. PUBLIC HEARING 9. UNFINISHED BUSINESS City of Mountain View Page 1 Printed on 3/23/2018 Rental Housing Committee Agenda March 26, 2018 10. NEW BUSINESS 10.1 Professional Services for the Implementation of the CSFRA for Upcoming Fiscal Year Recommendation: Provide direction to staff regarding procurement of professional services for the upcoming fiscal year. Attachments: Staff Report 10.2 Authorization to Execute an Agreement with Goldfarb & Lipman for Legal Services for FY 2017-18 Recommendation: That the Rental Housing Committee authorize the Program Manager or other designee to execute an agreement with Goldfarb & Lipman LLP for legal services related to the Community Stabilization and Fair Rent Act for Fiscal Year 2017-18 in an amount not to exceed $200,000 Attachments: Staff Report ATT 1 - FY 2017-18 Legal Fee Budget Proposal 10.3 CSFRA Annual Rental Housing Fee collection overview Recommendation: To receive a presentation on the status of the Annual Rental Housing Fee collection. Attachments: Staff Report ATT 1 - Example Invoice and Explanatory Leaflet for Annual CSFRA Fees 10.4 CPI Indices and the CSFRA Recommendation: Adopt a resolution identifying replacement indices for purposes of future Annual General Adjustments and maintenance of net operating income calculations in the Petition for Upward Adjustment of Rent (Fair Return) contexts. Attachments: Staff Report ATT 1 - Resolution ATT 2 - Map ATT 3 - BLS, CPI, San Francisco Bay Area – December 2017 ATT 4 - BLS, CPI, San Francisco Bay Area – February 2018 ATT 5 - BLS, CPI, Pacific Cities – February 2018 10.5 Annual General Adjustments Pre-February 2016 and Post 2017 Recommendation: Consider the potential for and timing of any Annual General Adjustment applicable for time frames prior to February 2016 and February 2017. Attachments: Staff Report ATT 1 - Resolution No. RHC - 2 ATT 2 - Text of CSFRA Section 1707 ATT 3 - November 6, 2017 Staff Report City of Mountain View Page 2 Printed on 3/23/2018 Rental Housing Committee Agenda March 26, 2018 10.6 CSFRA Monthly Status Report February 2018 Recommendation: Hear a presentation regarding the CSFRA monthly status report. Attachments: CSFRA Monthly Status Report February 2018 11. COMMISSION/STAFF ANNOUNCEMENTS, UPDATES, REQUESTS, AND COMMITTEE REPORTS No action will be taken on any questions raised by the Commission at this time. 12. CLOSED SESSION REPORT 13. ADJOURNMENT Adjourn to the Regular Meeting of the RHC on Monday, April 9, 2018, in the Council Chambers, City Hall, 500 Castro Street. Meeting date, time, and venue are subject to change. Please check online at www.mountainview.gov as an agenda will be posted the Thursday prior to the RHC meeting. AGENDAS FOR BOARDS, COMMISSIONS, AND COMMITTEES - The specific location of each meeting is noted on the notice and agenda for each meeting which is posted at least 72 hours in advance of the meeting. Special meetings may be called as necessary by the Committee Chair and noticed at least 24 hours in advance of the meeting. - Questions and comments regarding the agenda may be directed to the RHC at (650) 903-6125 or RHC@mountainview.gov. - Interested persons may review the agenda and staff reports at the Community Development offices, 500 Castro Street, First Floor; the Friday afternoon before each meeting at 4:30 p.m. or soon thereafter; or online at www.mountainview.gov; and they are available during each Committee meeting. SPECIAL NOTICE—Reference: Americans with Disabilities Act, 1990 - Anyone who is planning to attend a meeting who is visually or hearing-impaired or has any disability that needs special assistance should call the Community Development Department at (650) 903-6306 48 hours in advance of the meeting to arrange for assistance. Upon request, in advance, by a person with a disability, agendas and writings distributed during the meeting that are public records will be made available in the appropriate alternative format. Also upon request, in advance, an assistive listening device can be made available for use during the meeting. - The Board, Commission, or Committee may take action on any matter noticed herein in any manner deemed appropriate by the Board, Commission, or Committee. Their consideration of the matters noticed herein is not limited by the recommendations indicated herein. SPECIAL NOTICE—Any writings or documents provided to a majority of the RHC regarding any item on this agenda will be made available for public inspection in the Community Development Department, located at 500 Castro Street, during normal business hours and at the meeting location noted on the agenda during the meeting. ADDRESSING THE BOARD, COMMISSION, OR COMMITTEE - Interested persons are entitled to speak on any item on the agenda and should make their interest known to the Chair. - Anyone wishing to address the Board, Commission, or Committee on a nonagenda item may do so during the "Oral Communications" part of the agenda. Speakers are allowed to speak one time on any number of topics for up to three minutes. City of Mountain View Page 3 Printed on 3/23/2018

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