DATE: May 20, 2025
TO: Mayor and City Council
FROM: Director of Development Services
SUBJECT: Adopt a Resolution Authorizing the City Manager to Execute an Agreement with Project Sentinel for Fiscal Year 202 6 in an Amount Not -to-Exceed $180,000 to Provide Mediation, Arbitration, and Education Services Related to the Residential Rent Stabilization and Tenant Protection Ordinance and Mobilehome Space Rent Stabilization Ordinance
RECOMMENDATION
That the City Council adopts a resolution (Attachment II) to authorize the City Manager to execute an agreement with Project Sentinel to provide mediation and arbitration services, administrative support, and outreach and educational services related to the Residential Rent Stabilization and Tenant Protection Ordinance (RRSO) and Mobilehome Space Rent Stabilization Ordinance (MRSO) in an amount not-to-exceed $180,000 for Fiscal Year 2026.
SUMMARY
As part of the RRSO, the City provides a mandatory mediation program with b inding arbitration to resolve rent increase disputes for tenants of covered rental units. Project Sentinel currently administers the RRSO rent dispute resolution process, including providing mediation and arbitration services, administrative support, and o utreach and education support. Project Sentinel has reliably provided these services for many years and their current contract with the City will expire on June 30, 2025.
The Project Sentinel agreement is paid from Rent Review Fund and funded by payments from the annual Residential Rent Stabilization Fee. The fee supports the administration of the RRSO, the Mobilehome Space Rent Stabilization Ordinance (MRSO), and the Tenant Relocation Assistance Ordinance (TRAO). The Operating Budget will cover the cost associated with this contract with Project Sentinel. The total fiscal impact will be equal to the amount budgeted for FY 26, and there is no additional impact to the Rental Housing Program Fund.
BACKGROUND
On June 19, 2019, the City Council approved adding Chapter 12 to the Hayward Municipal Code to adopt a new Residential Rent Stabilization and Tenant Protection Ordinance (RRSO) to mitigate displacement of Hayward residents. 1 Included in the RRSO is a mediation and binding arbitration program in which tenants living in units covered by the residential rent threshold provision of the ordinance (Section 12 -1.05) have access to free mediation and arbitration services such as when they receive a rent increase greater than five perce nt, a health or safety violation exists, there is a reduction in housing services, they do not receive a lawful notice of a rent increase, and they receive an increase in utility costs of more than one percent of their current rent and fail to provide supp orting documentation. The MRSO also includes an arbitration program. The City entered into agreements with Project Sentinel to support the City in its administration of the RRSO and MRSO since before FY 2018. Each year, staff provide a n RRSO implementation update to the Housing Policy & Resource Committee (HPRC), formerly known as the Homelessness-Housing Task Force (HHTF). The RRSO implementation update from the December 202 4 HPRC meeting provides a more detailed discussion of Project Sentinel’s role and the implementation of the RRSO.2
DISCUSSION
As part of the RRSO, the City provides a mandatory mediation program with binding arbitration to resolve rent increase disputes for tenants of covered rental units . Project Sentinel currently administers the me diation and arbitration program and provides educational workshops to advise tenants and landlords of their rights and responsibilities under the City ’s RRSO. A key component of the work Project Sentinel does to support the City’s implementation of the RRS O is ensuring that petitions move through the workflow within the timeframes established by the RRSO and contracting with a panel of mediators and arbitrators to provide services established under the RRSO and MRSO. The City has been in contract with Project Sentinel since before FY 2018, with their scope expanding in FY 2020 to account for the adoption of the new RRSO in July 2019.
Staff recommend the City Council adopt a resolution authorizing the City Manager to negotiate and execute an agreement with Project Sentinel to support the implementation of the RRSO and MRSO in FY 2026.
1 June 19, 2019 City Council Meeting Staff Report and Attachments:
https://hayward.legistar.com/LegislationDetail.aspx?ID=3985848&GUID=52D1B678-D6BB-401A-AB3C- 8990885C0CDD&Options=ID|Text|&Search=rent+stabilization
2 December 19, 2024, Housing Policy & Resource Committee Staff Report and Attachments:
https://hayward.legistar.com/LegislationDetail.aspx?ID=7059968&GUID=A2B4C93C-9FBC-4ACF-9CE1- B5DB354C03E0&Options=&Search=
ECONOMIC IMPACT
There is no immediate economic impact with consideration of this report.
STRATEGIC ROADMAP
This agenda item supports the Strategic Priority of Preserve, Protect, and Produce Housing.
This item is not specifically related to a project identified in the Strategic Roadmap. Staff are bringing forth this item because the contract with Project Sentinel is necessary for implementing the RRSO.
FISCAL IMPACT
There are sufficient funds budgeted in the proposed FY 2026 Operating Budget to cover the cost associated with this item, and there is no additional impact to the Rental Housing Program Fund.
PUBLIC CONT ACT
There has been no public comment related to this item.
NEXT STEPS
If this item is approved, staff will enter into an agreement with Project Sentinel to provide the services described in this report.
Prepared by: Ayush Patel, Management Analyst I
Recommended by: Sara Buizer, AICP, Director of Development Services Christina Morales, Deputy Director of Development Services
Approved by:
______________________________________
Dr. Ana M. Alvarez, City Manager