RENT STABILIZATION BOARD
Regular Meeting Minutes

Monday, May 2, 2005
7 PM

APPROVED


Item 1. Call to Order - Chairperson Chong called the meeting to order at 7:01 p.m. 

Commissioners Present: Arreguin, Chong, Evans, Harrison, Kavanagh, Overman (arrived 7:14), Payne, Spector, Walden 

Commissioners Absent: None 

Staff Present: Kelekian, Kelly, Traylor, Wyche

Item 2. Approval of the Agenda. M/S/C (Evans/Arreguin) APPROVE AS WRITTEN. Voice vote. Passed: 8-0-0-1 Absent: Overman.

Item 3. Public Forum. There were two speakers: Jeffrey Carter, Attorney for the Drayage Building tenants at 651 Addison Street, speaking on their behalf and suggesting the Board use language similar to that in Commissioner Kavanagh's proposed Rent Board resolution to City officials in support of the Drayage tenants; and Councilmember Kriss Worthington also speaking on behalf of Drayage Building tenants and in support of the proposed resolution in the package.

Item 4. Approval of the April 18, 2005 Minutes. M/S/C (Arreguin/Walden) TO APPROVE MINUTES WITH ONE CORRECTION UNDER ITEM NUMBER 3, PUBLIC FORUM, SPEAKER PATRICK KELIVE CHANGE SPELLING OF LAST NAME TO KEHOE. Voice vote. Passed: 7-0-1-1. Abstain: Payne; Absent: Overman.

Item 5. Public Hearing on the annual registration fee and adoption of the Fiscal Year 2005/2006 Budget. 7:15PM

M/S/C (Overman/Payne) TO OPEN THE PUBLIC HEARING. Voice vote. Passed: 9-0-0-0.

Item 5.a. Public testimony on the annual registration fee and 2005/2006 budget. There was one speaker, Kathy Snowden, representing the Berkeley Property Owners Association speaking against a fee increase.

M/S/C (Overman/Payne) TO CLOSE THE PUBLIC HEARING. Voice vote. Passed: 9-0-0-0.

Item 5.b. Discussion and recommendation of the Fiscal Year 2005/2006 budget, staffing model and annual registration fee. Jay Kelekian, Executive Director, gave a presentation on the proposed FY 2006 budget and a recommendation of a maximum operational spending level totaling $3,240,000 and an $18 per unit fee increase to meet the projected budget of the Board.

Item 5.d. Discussion and adoption of a Resolution setting Fiscal Year 2005/2006 budget guidelines and establishing the annual registration fee. 

M/S (Evans/Walden) TO ADOPT THE PROPOSED RESOLUTION WITH CHANGES TO THE FINAL WHEREAS AS FOLLOWS: WHEREAS, THE DIRECTOR AND BUDGET & PERSONNEL COMMITTEE BELIEVE THAT RECURRING ANNUAL REVENUES OF $3,037,500 $3,151,000 IN FY 2006 WILL BE NECESSARY TO MEET THE PROGRAM'S OPERATING NEEDS AND IT WILL REQUIRE AN ANNUAL REGISTRATION FEE OF $154 $160 PER UNIT. ALSO, REMOVE THE SECOND PARAGRAPH, OR THE FIRST BE IT FURTHER RESOLVED, REGARDING FEE PASS-THROUGH.

SUBSTITUTE MOTION M/S/C (Overman/Spector) TO ADOPT PROPOSED RESOLUTION WITH MAXIMUM OPERATIONAL SPENDING LEVEL TOTALING $3,240,000 FOR FISCAL YEAR 2006 WITH THE ESTABLISHMENT OF A REGISTRATION FEE OF $154 PER UNIT. ALSO, REMOVE SECOND PARAGRAPH, OR FIRST BE IT FURTHER RESOLVED, REGARDING TENANT PASS-THROUGH WITH THE UNDERSTANDING THE ISSUE MAY BE BROUGHT BACK FOR DISCUSSION AT A FUTURE MEETING. Roll call vote. Yes: Arreguin, Chong, Kavanagh, Overman, Payne, Spector; No: Evans, Harrison, Walden; Abstain: None; Absent: None. Passed: 6-3-0-0.

Item 6.a.(1) That the Board adopt a resolution interpreting the Rent Ordinance to hold that the post-1996 construction of a second unit on a tax parcel with a single unit will not cause the existing single unit to lose its exemption from the Rent Ordinance. M/S/C (Overman/Chong) TO MODIFY THE RESOLUTION TO INCLUDE WHEREAS DELETIONS AND ADDITIONS PROPOSED BY OVERMAN AND DISCUSSED BY BOARD, INCLUDING SLIGHT WORD CHANGES IN ARREGUIN'S FRIENDLY AMENDMENT AS REFLECTED IN RESOLUTION NUMBER 05-08 ATTACHED HERETO. Roll call vote. Yes: Arreguin, Chong, Kavanagh, Overman, Payne; No: Evans, Harrison, Spector, Walden; Abstain: None; Absent: None. Passed: 5-4-0-0.

Item 6.a.(2) Discussion and possible action on the situation at 651 Addison Street (The Drayage Building), including options to support the tenants facing eviction. M/S/C (Chong/Overman) TO ADOPT RESOLUTION ATTACHED TO AGENDA AND WRITTEN BY KAVANAGH AS AMENDED BY CHONG INCLUDING FRIENDLY AMENDMENTS BY KAVANAGH, SPECTOR, AND ARREGUIN WITH CHANGES TO LAST WHEREAS AND ADDITION OF A "BE IT FURTHER RESOLVED" AS REFLECTED IN RESOLUTION NUMBER 05-06 ATTACHED HERETO. Roll call vote. Passed unanimously: 9-0-0-0.

Item 7.a.(1) Setting a summer recess. M/S/C (Chong/Payne) BOARD WILL TAKE A SUMMER BREAK AFTER THE FIRST REGULAR BOARD MEETING IN JULY AND RETURN ON THE SECOND REGULAR BOARD MEETING IN AUGUST (JULY 7TH RETURNING AUGUST 15TH). Voice vote. Passed: 8-0-1-0. Abstain: Overman.

Item 7.a.(2) TIC/Condo Ordinance update. Executive Director, Jay Kelekian, and Commissioner Arreguin gave an update on the TIC/Condo Ordinance. Item 7.a.(3) Market Medians: January 1999 through March 2005 Submitted without discussion by Executive Director, Jay Kelekian.

Item 7.a.(4) Fiscal Year 2005 ¾ - Year Budget Update. Executive Director, Jay Kelekian, noted that the updated report in the agenda packet reflected corrections to typos in the version distributed at the last meeting.

Item 7.b. Announcements of upcoming Committee Meetings: 

(1) Budget and Personnel: No meeting scheduled.

(2) Outreach: TBA

(3) Eviction: TBA

(4) IRA/AGA: Next meeting: Monday, May 9th at 6 p.m.

(5) 4 x 4 Joint Committee on Housing: No meeting scheduled.

Item 7.c. Discussion of items for possible placement on future agenda material. Evans requested an acknowledgement of Rent Ordinance 25th anniversary in June. Overman requested report or presentation on web casting. Arreguin requested soft story update.

Item 8. Adjournment. M/S/C (Payne/Walden) Chair Chong adjourned at 10:26 p.m.