body,date,page,text,path
RentReviewAdvisoryCommittee,2019-07-01,1,"Approved Minutes
July 1, 2019
Minutes of a Regular Meeting of the
Rent Review Advisory Committee
Monday, July 1, 2019
1. CALL TO ORDER AND ROLL CALL
The meeting was called to order at 6:32 p.m.
Present:
Vice Chair Sullivan-Cheah; Members Sidelnikov and Chiu
Absent:
Chair Murray, Member Johnson
Program Staff:
Grant Eshoo and Bill Chapin
City Attorney Staff: Michael Roush
2. AGENDA CHANGES
Staff informed the Committee that Agenda Items 7-C and 7-F had resolved prior to
the meeting.
Staff called roll of case participants. The tenants for Agenda Item 7-D were not
present and the item was moved to the end of the agenda.
3. STAFF ANNOUNCEMENTS
None.
4. PUBLIC COMMENT, NON-AGENDA ITEMS, NO. 1
Angie Watson-Hajjem from Echo Housing provided information about the
organization's Tenant/Landlord Services and Fair Housing Program.
Eric Strimling from Alameda Renter's Coalition (ARC) expressed concern about
recent cases with binding decisions in excess of 5 percent. He objected to the idea
that it is reasonable for tenants to have to negotiate down from a 10 percent
increase.
5. CONSENT CALENDAR
5-A. Approval of the minutes May 15, 2019 special meeting
Motion and second to approve the minutes (Vice Chair Sullivan-Cheah and Member and
Sidelnikov). Motion passed 3-0.
5-B. Approval of the minutes June 3, 2019 regular meeting",RentReviewAdvisoryCommittee/2019-07-01.pdf
RentReviewAdvisoryCommittee,2019-07-01,2,"Approved Minutes
July 1, 2019
Motion and second to approve minutes (Vice Chair Sullivan-Cheah and Member and
Sidelnikov). Motion passed 3-0.
6. UNFINISHED BUSINESS
None.
7. NEW BUSINESS
7-A: Discussion on RRAC member attendance requirements.
Vice Chair Sullivan-Cheah expressed concerned about attendance. Currently, there are
only three people attending the meetings regularly, which is the minimum for a quorum. It's
also the minimum votes needed to pass any kind of motion and it has to be unanimous.
Furthermore, there are no owner representatives, and that experience and perspective is
missed.
Member Chiu asked if the City Council has been made aware that they might need to
appoint a new person. Staff informed the committee they will be conducting interviews with
someone to replace Member Johnson in the next few weeks. By August, Chair Murray
should be back from out of state work-related activities.
Vice Chair Sullivan-Cheah asked if Member Johnson resigned. Staff replied that she did
not apply to have her position be renewed.
Vice Chair Sullivan-Cheah said he doesn't know what the committee will look like going
forward, but he thinks that residents have the right to a fully functioning committee.
7-B. Discussion and vote for Chair and Vice Chair
Based on his stated concerns about attendance, Vice Chair Sullivan-Cheah recommended
the committee vote on a new chair and vice chair. He confirmed that he has been serving
as vice chair and Chair Murray as chair, and he previously served as chair. He said they
could nominate Chair Murray to be chair again, and she continues to be chair unless voted
otherwise. The bylaws call for a yearly vote.
Member Chiu noted the bylaws state that the election should happen at the first meeting
after July 1 at which all committee members are present. It could mean that they would
never have that vote because they've never had all of their committee members present.
Vice Chair Sullivan-Cheah submitted that Robert's Rules of Order allows meetings to take
place under a quorum.
City Attorney staff said the intent of the rule is that, if for some reason not all members are
present but would be present fairly quickly, then the vote should be delayed until all are",RentReviewAdvisoryCommittee/2019-07-01.pdf
RentReviewAdvisoryCommittee,2019-07-01,3,"Approved Minutes
July 1, 2019
available. If the committee intent is to move forward in nominating a chair and vice chair
and vote tonight, it is within the purview.
Vice Chair Sullivan-Cheah said if Chair Murray returns and would like to have another
vote, that's something they can consider. He further noted that the last vote for chair was
at a different time of the year only because it was the first meeting with new committee
members.
Member Chiu motion to nominate Vice Chair Sullivan-Cheah as the chair of the
committee. City Attorney staff clarified that, if Vice Chair Sullivan-Cheah was elected, then
he can proceed as chair for the remainder of the meeting.
Motion and second for nominating Vice Chair Sullivan-Cheah as Chair. (Members
Sidelnikov and Chiu). Motion passed 3-0.
Member Chiu motion to nominate Chair Murray as vice chair. Vice Chair Sullivan-Cheah
hearing no second; motion failed.
Motion and second for nominating Member Chiu as Vice Chair. (Vice Chair Sullivan-Cheah
and Member Sidelnikov). Motion passed 3-0.
7-E. Case 1282 - 1861 Poggi St., Unit B318
Landlord: Andy King
Tenant: Saba Woldentensai
Proposed rent increase: $131.00 or (9.9%), to a total rent of $1,450, effective
July 1, 2019.
Mr. King said the current ownership purchased the property in October 2017, and the
property had extensive deferred maintenance. To date, the ownership has spent more
than $4.6 million on renovations including seismic upgrades, roofing, painting, and
improvements to the grounds. The rent increase is intended to recoup some of this
investment.
Mr. King said the previous owner did not keep records of the 2015 rent increase, which
was $100.00, or 8.3 percent. The previous owner failed to provide paperwork and notices,
which resulted in new ownership rescinding the increase and refunding $4,000.00 last
year. As a result, Mr. King noted the current rent is $19.00 more than what the tenant paid
following the invalid 2015 increase, and the tenant's payments decreased last year. Mr.
King noted that one-bedroom comparable units at the property are currently renting at
$2,404.00, $2454.00 and $2,354.00.
Ms. Woldentensai said the ownership did a good job with the common areas and
improvements. She is currently experiencing financial hardship and medical expenses.",RentReviewAdvisoryCommittee/2019-07-01.pdf
RentReviewAdvisoryCommittee,2019-07-01,4,"Approved Minutes
July 1, 2019
She is a single parent and spends 30 percent of income on rent. She is asking for a 5
percent increase instead. She mentioned that her carpet is very dirty and the landlord
offered to replace the carpet if she took the 10 percent increase. However, she would
rather have a 5 percent increase without having her carpet replaced.
Chair Sullivan-Cheah reminded participants that this was a public meeting, and
participants are not required to justify or disclose anything personal.
Member Chiu asked Ms. Woldentensai how many people are currently occupying the unit.
Ms. Woldentensai responded she has two sons under the age of 18. Member Chiu asked
about her current job, and Ms. Woldentensai explained it is a salaried position.
Chair Sullivan-Cheah asked Ms. Woldentensai whether the landlord has made any
improvements to the inside of her unit. Ms. Woldentensai responded that her refrigerator
and window frames were replaced. She said regular rent increases have prompted her to
consider moving out of state. Chair Sullivan-Cheah asked about the money that was
refunded to her because of the invalid increase from the previous owner. Ms.
Woldentensai confirmed that it was decreased immediately after a 10 percent increase,
which made her reconsider staying longer.
Chair Sullivan-Cheah asked about her sons and length of tenancy. Ms. Woldentensai
responded they attend school in Alameda. She has been residing in this apartment for six
years, and living in the west side of Alameda since 2009.
Chair Sullivan-Cheah asked Ms. Woldentensai whether she was asking for a 5 percent
increase because it is something she could afford or because of language in Ordinance
no. 3148. He clarified that the City Council created different requirements for landlords
seeking increases above 5 percent, including mandatory review by the committee.
Ms. Woldentensai said she was previously unaware of the ordinance and simply accepted
any increase that was given by the landlord; however, she understands now and is able to
afford a 5 percent increase.
Chair Sullivan-Cheah asked if there were additional repairs made when they replaced the
windows and balcony. Mr. King responded no.
Chair Sullivan-Cheah asked about the units renting for around $2400.00, and if they are
remodeled units with new carpeting and paint. Mr. King replied that the units have new
carpeting, new paint, and some cases have additional renovations. For example, if
cabinetry was worn out it was replaced. Mr. King said they replaced all of the toilets in
renovated and non-renovated units about 6 months ago. Ms. Woldentensai stated that
nothing was replaced or upgraded in her bathroom.
As the parties were unable to reach an agreement, they took their seats, and the
Committee began deliberations.",RentReviewAdvisoryCommittee/2019-07-01.pdf
RentReviewAdvisoryCommittee,2019-07-01,5,"Approved Minutes
July 1, 2019
Member Sidelnikov reflected on Ms. Woldentensai's tenancy of 6.5 years in the unit, her
financial hardship and being a single parent with two kids. He understands the issue with
prior increases. Members Sidelnikov and Chiu expressed concern about two 10 percent
increases in a row. Member Chiu said a $66.00 increase (5 percent), is something she
could afford to do and he approves of it.
Chair Sullivan-Cheah said the building was not in the best condition under the previous
owner. He said that there's a history for allowing rent increases to go forward in this
complex. He said he believes a 5 percent increase is fair, however, it's still a large
increase.
Motion and second for an increase of $66 (5 percent), to a total rent of $1385.00, effective
July 1, 2019 (Members Chiu and Sidelnikov). Motion passed 3-0.
7-G. Case 1303 - 781 Central Ave., Unit A
Tenant: Jeffrey Giordano
Landlords: Andrea Soltero (Property Manager)
Proposed rent increase: $75.00 (4.9%), to a total rent of $1610.00, effective July
1,2019.
Mr. Giordano has been living in Alameda for the past seven years. He is a teacher's aide
in special education at a public high school. He's been very involved within the community
and runs a film series at the main library. When he moved in, he was living and sharing
rent with his partner at the time, but that is no longer the case. He said annual rent
increases have been a shock, and that he does not get a 4.9 percent increase in his salary
every year. He had to forbear his student loans when he got the most recent rent increase
letter.
Ms. Soltero acknowledged that Mr. Giordano first moved in as one of two co-tenants. The
owner approved the tenancy based on his partner's income. When she moved out, he
experienced hardship to continue as a single tenant. Ms. Soltero said that comparable
one-bedroom rent is anywhere from $1,950.00 to $2,025.00 They have increased the
rent with a small, steady increases each year. She didn't have any arguments with what
he submitted. It's an old building requiring a lot of maintenance.
Mr. Giordano said when there is a maintenance issue, the landlord is helpful with taking
care of it.
Chair Sullivan-Cheah asked Ms. Soltero how the 4.9 percent rent increase was
determined, while acknowledging that those decisions are made by the owners and not by
her. She said she believes it is based on what Chair Sullivan-Cheah discussed earlier
regarding requirements for increases greater than 5 percent, although the amount is not
always near 5 percent, and that the amount is given across the board to all tenants. Chair",RentReviewAdvisoryCommittee/2019-07-01.pdf
RentReviewAdvisoryCommittee,2019-07-01,6,"Approved Minutes
July 1, 2019
Sullivan-Cheah noted the last three increases on this unit were all just under 5 percent and
the committee could therefore not issue a binding decision on them.
Chair Sullivan-Cheah and Member Chiu asked about upgrades, improvements, and
housing services. Ms. Soltero explained that the unit has had only standard repairs in the
last year. The eight-unit building's roof was replaced about six years ago. In addition, in
the 12 years she has worked there, work has included a seismic retrofitting, landscaping,
repaving the parking lot, and replacing windows. As things needed repair, they would fix it.
Gas, water, and garbage are included in the rent, and tenants pay for electricity. Mr.
Giordano said he has received the same standard level of maintenance with no recent
upgrades.
Member Sidelnikov asked if the nearly 5 percent rent increases reflect the improvements
made to the property or if they are policy and related to the Ordinance no. 3148. Ms.
Soltero said she was not qualified to answer.
Chair Sullivan-Chea asked if it's fair to say rent increases have outpaced the increase in
his salary. Mr. Giordano responded yes. He said he limits expenses by cooking at home
and not traveling. Having enough for rent, gas, insurance, and medical expenses has been
a financial challenge, he said, and he is not able to afford any rent increase.
Chair Sullivan-Chea asked Mr. Giordano if he still feels the same about no rent increase
because it's what he can afford. Mr. Giordano replied yes.
Chair Sullivan-Chea asked Ms. Soltero if the ownership group is staying firm with 4.9%
increase, or is there flexibility based on circumstances.
Ms. Soltero said the ownership may be willing to be flexible on the increase. Chair
Sullivan-Chea asked both parties whether a $55 increase may be possible. Mr. Giordano
said he did not think that would be fair because of the history of increases.
The parties were unable to reach agreement and returned to their seats.
Bill Rowen provided public comment on the agenda item. He said he has known Mr.
Giordano ever since Mr. Giordano moved to Alameda. He said Mr. Giordano is
considering leaving Alameda if he cannot resolve his rent issues, which Mr. Giordano
confirmed. Mr. Rowen said he has had many of his friends leave Alameda because they
could not afford rent increases.
The Committee began deliberations.
Member Sidelnikov said he was concerned that this was the third year of increases just
under 5 percent, and that it seems like an approach to avoid a binding decision by the
committee. He said there are people on limited incomes would be displaced by a policy to
increase rent 5 percent every year, and people in the workforce often don't see that type of
increase in salary.",RentReviewAdvisoryCommittee/2019-07-01.pdf
RentReviewAdvisoryCommittee,2019-07-01,7,"Approved Minutes
July 1, 2019
Member Chiu noted that, since 2015, Mr. Giordano's rent has gone up almost 24 percent
without compounding. This increase will make it nearly 30 percent non-compounding over
about five years. Many renters would not be able to stay in their units with increases going
up that much in that amount of time, he said. Member Chiu and Chair Sullivan-Chea noted
that the history of rent increases seems to reflect changes in Alameda's policy. Mr.
Giordano received a 7.1 percent increase right before the ordinance was passed, an
increase of 5 percent in 2016 shortly after it passed, and annual increases not subject to
binding decisions since then.
Chair Sullivan-Cheah said these increases may not look very large to some, but $75.00
extra a month can be tough on someone who is already rent burdened. He stated he's not
sure he would vote for no increase, but it's not outrageous for a tenant to ask for that.
Member Sidelnikov thanked the landlord's representative for being willing to be able to
negotiate. He said he would support an advisory decision of a 0 percent increase given the
history of annual rent increases under 5 percent.
Motion and second for a $0.00 increase (Chair Sullivan-Chea and Member Sidelnikov).
Member Chiu opposed. Motion failed 2-1.
Motion and second for an increase of $30.00, effective July 1, 2019 (Chair Sullivan-Cheah
and Member Sidelnikov). Motion passed 3-0.
7-D. Case 1281 - 1861 Poggi St., Unit B306
No Committee review. The tenant was not present. The landlord may impose the rent
increase as noticed or as otherwise agreed upon by the parties.
8. PUBLIC COMMENT, NON-AGENDA ITEMS, NO. 2
None.
9. MATTERS INITIATED
None.
10.ADJOURNMENT
The meeting adjourned at 8:08 p.m.
Respectfully Submitted,",RentReviewAdvisoryCommittee/2019-07-01.pdf
RentReviewAdvisoryCommittee,2019-07-01,8,"Approved Minutes
July 1, 2019
RRAC Secretary
Bill Chapin
Approved by the Rent Review Advisory Committee on August 5, 2019",RentReviewAdvisoryCommittee/2019-07-01.pdf