Staff is seeking City Council approval to form a taskforce that will evaluate tenant protection measures to address the steep increase in rents that have impacted local residents.  The taskforce will make recommendations to the City Council on approaches to address rising rents and possible tenant protection measures.  Once members are recruited and the taskforce is established, the group could begin meeting in the near future and provide recommendations to the City Council in approximately six months.

At the City Council meeting of July 12, 2016, staff briefed the Council and sought direction on approaches that could be used to address rising rents and possible tenant protection measures.  The framework laid out by staff identified several approaches, including: adopting an ordinance that requires an offer of minimum lease terms to tenants to provide certainty for the tenant and landlord; establishing a rent review program that would apply to qualifying rental units citywide; establishing a “just cause” eviction ordinance; or establishing rent stabilization that would apply to qualifying rental units consistent with the Costa Hawkins Act.  These options could be adopted independently or in concert with each other.

The July 12 staff report to the City Council stemmed from a study session that the Council held on May 17, 2016.  At the study session in May and at the July 12, 2016 City Council meeting, the Council received testimony from private property owner advocates that rent control or rent stabilization would infringe upon private property rights and curtail reinvestment in private property and in the community.  Likewise, the City Council heard testimony from renters and community advocates that significant rent increases are displacing residents in Union City because rental units are becoming too expensive. Comments from renters stated that rent increases are de-stabilizing the community and having a negative impact on residents and school-aged children.  The City Council considered staff’s presentation, heard public comment, and voted 4-1 to direct staff to prepare a framework for a taskforce to assist with the consideration of possible tenant protection measures.  The taskforce would evaluate the current rent environment in Union City, evaluate possible tenant protection measures, and make recommendations to the City Council.

Staff is proposing the formation of a nine-member taskforce, approved by the City Council, to evaluate tenant protection measures. The taskforce would then provide recommendations to the City Council that could address tenant concerns in a fair and equitable manner.  The outcome of the taskforce is to recommend possible tenant protection measures to the City Council that will help address unpredictable and excessive rent increases.

Staff is proposing:

• A nine-member taskforce made up of three tenant representatives, three landlord representatives, and three impartial community members. There would be a preference for applicants that live and/or own property in Union City.

• A brief recruitment period would be needed to reach out to the community to engage and recruit interested parties.  Staff will select taskforce members for consideration and approval of the City Council. 
• Once established, the taskforce would meet monthly. 
• The taskforce would evaluate rental data for Union City to determine local issues.
• The taskforce would evaluate methods and approaches to address the issues.
• Based on a majority vote, the taskforce would provide recommendations to the City Council on how best to address the rent increases and provide tenant protection measures.  Opposing opinions would also be noted.

Staff has prepared a “Taskforce Charter,” attached as Exhibit A, to provide a framework to guide the meetings. The purpose and scope of the taskforce is explained as:

• Review available data on Union City rent and tenant issues.
• Review and adhere to the legal framework regarding possible rent stabilization approaches and other possible tenant protection measures.
• Solicit a wide range of input and perspectives when considering rent and tenant issues.
• Educate all participants regarding rent and tenant issues from both the landlord and tenant perspective.
• Provide recommendations to the City Council on options that the Council could consider to address rent and tenant issues in a legal, fair and equitable manner.

Currently, the Taskforce Charter is structured so that City staff will facilitate and moderate taskforce meetings.  However, the City Council could elect to have the taskforce appoint a Chair or Co-Chairs to facilitate meetings, or the City Council could appoint one or more Council Members to chair the taskforce.

Staff anticipates that the taskforce would meet approximately 4-6 times to evaluate data and develop recommendations. Also attached as Exhibit B is an application to assist in the recruitment process for participants.  Staff will return to the Council for confirmation and approval of the taskforce members upon completion of recruitment.

There is no fiscal impact to forming the Rent and Tenant Taskforce, except for additional costs that may be associated with additional staff time and participation and review by the City Attorney’s office.

Staff recommends that the City Council authorize staff to form the Rent and Tenant Taskforce that will study rent and tenant issues and make recommendations to the City Council on approaches to address these issues. Staff further requests that the Council approve the Taskforce Charter and select an organizational structure for the taskforce, which could be one of the following:

         a)     Chaired by one or more members of the City Council;

         b)     Chaired by one or more members of the Taskforce; or

         c)     Facilitated by City staff, as is currently reflected in the Charter.

Lastly, staff requests that the Council approve the Taskforce Application for the recruitment of members. 

Staff will return to the Council for final approval of the Rent and Tenant Taskforce and its membership.