February 04, 1997

President Becker called the meeting to order at 6:05 p.m.

Commissioners Present: Becker; Bierly; Marshall; Palma; Wasserman.
Commissioners not Present: Lightner; Mosser.
Staff Present: Grubb; Wolf.

Commissioner Gruber appeared on the record at 6:10 p.m.; Commissioner Moore appeared at 6:25 p.m.; and Commissioner Murphy arrived at 6:50 p.m.

MSC: To approve the Minutes of January 21, 1997.
(Marshall/Palma: 4-0)

Robert Pender announced that the Tenants’ Network’s fourth birthday party was a great success and a good time was had by all. He also passed out copies of the Tenant Times.

A. 1234 - 1238 Vallejo St. R001-39A

The landlord’s petition for certification of capital improvement costs and rent increases based on increased operating expenses was granted, in part. However, the landlord’s request for an additional 12.5% on each cost for "contractor’s overhead" was denied, because the hearing officer found that no actual costs were incurred by the landlord for overhead; the landlord’s involvement did not constitute "uncompensated labor"; nor was the landlord’s involvement necessary for the completion of the subject work. On appeal, the landlord asserts that the costs of the work were substantially lowered because it was agreed between she and the subcontractors that she would be performing "project management" functions; that the amount of the passthrough to the tenants would have been higher had she not performed in this capacity; and, at a minimum, she should be granted the 8% deemed reasonable by the estimator.

MSC: To deny the appeal. (Marshall/Palma: 3-1; Gruber dissenting)

The Commissioners received the following communications:

1. A letter from Ted Gullickson of the Tenants Union regarding the Board’s policy concerning evictions pursuant to Ordinance Section 37.9(a)(10).

2. A copy of the proposed budget for fiscal year 1997-98.

3. A Memorandum from the Ethics Commission regarding a provision of Proposition 208, a campaign reform measure passed by the electorate on November 5, 1996, which prohibits persons appointed to public boards or commissions from making campaign contributions to the appointing officer.

4. A revised staff roster.

5. President Becker reported that he had contacted the State Bar regarding the Board’s referral of attorney David Dawson for questionable business practices. The response was that they were waiting for the outcome of a wrongful eviction lawsuit filed by the tenant, Arthur Roberts.

Executive Director Grubb informed the Board that the imputed interest rate for capital improvements as of March 1, 1997 is 6.4% for seven year improvements and 6.5% for ten year improvements.

Discussion of the codification of the Board’s Artist Live/Work Policy was continued to the next meeting, as was the election of officers.

1. Executive Director Grubb walked the Commissioners through the Department’s Proposed Budget for Fiscal Year 1997-98, which totals $98,000 less than last year’s budget. Areas of increase include the addition of a permanent counselor position, as well as a full-time hearing officer; funds have also been requested for the refurbishing of the office, which was taken "as is" at the time of the 1989 earthquake, and has had no major improvements since that time. The Rent Board fee will remain at the same rate of $10 per unit. At Commissioner Gruber’s suggestion, the Director was instructed to also request funding of a temporary hearing officer position for nine months, if possible. With that addition, the Board voted as follows:

   MSC: To approve the Proposed Budget for Fiscal Year 1997-98. (Marshall/Murphy: 5-0)

2. Commissioner Murphy expressed his concern that, since many landlords refer to the Ordinance for information regarding evictions, the notice requirements pertaining to owner-occupancy evictions contained in Rules Section 12.14 should be reflected in the Ordinance as well. The Deputy Director will add this issue to the list of possible Ordinance amendments.

Robert Pender suggested that the budget be mailed to various organizations representing tenants.

February 11, 1997 - NO MEETING

February 18, 1997

4 appeal considerations

Old Business:

1. Codification of Artist Live/Work Policy

2. Election of Officers

President Becker adjourned the meeting at 7:15 p.m.