Interim City Administrator Deadlock Threatens $5.5M Bond Deal as Oakland Rules Committee Juggles Tax Measure, Encampments

Oakland's Rules and Legislation Committee hit a wall on two of its biggest items Thursday — deadlocking on the mayor's pick for interim city administrator and punting a foreclosure transfer tax ballot measure one more week — while an urgent push to align encampment policy with available shelter sites added new heat to a packed summer agenda.

• Interim city administrator appointment stalls 2-2, putting a $5.5 million CalPERS bond transaction at risk if no signatory is confirmed by July 15
• Foreclosure transfer tax ballot measure delayed one week after Councilmember Ramachandran demands to see amendments in writing; advisory measure stripped, replaced by pure revenue approach modeled on San Francisco
• Councilmember Houston forces early hearing on city-owned property inventory before July 14 encampment closures begin, warning displaced residents will have "no place to put them"
• Alvina Wong unanimously reappointed to Port of Oakland board for full term, praised for environmental justice expertise
• AC Transit budget and service cuts moved off consent so full council can weigh in July 7
• Sanctuary city ordinance, amended to remove OPD immigration cooperation provisions, headed to July 7 council

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$5.5M Bond Deal in Limbo After City Administrator Tie

The mayor's appointment of Elizabeth Lake as interim city administrator for a six-month term became the meeting's most consequential — and unresolved — fight.

Why it matters: Without a council-confirmed city administrator in place by mid-July, Oakland cannot close a CalPERS pension pre-funding transaction projected to save the city roughly $5.5 million in gross savings. The city's charter requires that only a confirmed city administrator — not the finance director, not the mayor — can sign bond documents.

Where things stand: Councilmember Ramachandran asked to hold the item one more week for due diligence. Finance Director Nicole Johnson laid out the stakes plainly: bond documents must be signed July 15–16, with closing around July 28. "If we do not have an interim or a permanent city administrator in position to sign documents on the dates mentioned, we have to terminate the transaction," said staff. "The estimated gross savings from the transaction is about $5.5 million."

City Attorney Ryan Richardson confirmed that under the charter, only a council-confirmed city administrator holds the legal authority to execute those documents.

The other side: Council President Kevin Jenkins insisted the bond market should not pressure the council into a personnel decision. "These two things should have nothing to do with one another," he said. "Council's ability to confirm city administration should have nothing to do with the bond market."

Councilmember Carroll Fife, who initially wavered, ultimately supported moving the item forward, arguing Oakland is in a time-sensitive moment. "I don't understand who we could put in place in a week that would satisfy the requirements that are needed," she said. "I understand there may be concerns with the individual, but that is the individual in position at this particular time."

Decisions: The committee split 2-2 — Councilmember Fife and Councilmember Rowena Brown voted to advance the appointment; Council President Jenkins and Councilmember Ramachandran voted to hold. Because a tie produces no action, the item dies unless the mayor resubmits it through the scheduling process, potentially with an urgency finding for the July 7 council meeting.

What's next: The clock is ticking. If the mayor resubmits with an urgency finding, the full council could take it up July 7 — eight days before the bond-signing deadline. If no city administrator is confirmed in time, the city loses the transaction entirely.

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Foreclosure Tax Ballot Measure Hits a Speed Bump

Councilmember Wong brought a revised version of a proposed November 2026 ballot measure to close a loophole that currently exempts foreclosure transactions from Oakland's real property transfer tax. The measure drew sharp questions about its own potential loopholes — and was continued one week to the July 2 Rules Committee on a 3-1 vote.

The basics: Oakland's progressive real property transfer tax, enacted through Measure X in 2018, does not apply to foreclosure transactions. Wong's proposal would end that exemption, generating new revenue from a category of deals that has grown significantly in commercial real estate. The measure was revised to drop an advisory component that would have directed revenue to homelessness services, making it a pure revenue measure.

Why it matters: San Francisco is pursuing a nearly identical measure. "San Francisco is actually moving to act before this window closes," Councilmember Wong said. "Their estimate, done by their comptroller's office, is actually estimated to generate over $200 million in revenue over the next three years." Wong identified 16 major deed-in-lieu-of-foreclosure transactions in Oakland over 2.5 years that could have generated significant revenue under the new tax. She also argued the tax could create friction that discourages banks from pursuing foreclosures in the first place: "One could argue that by applying this policy, we're actually creating some friction that can hopefully create some disincentives from pursuing the foreclosure in the first place from the bank's perspective."

Key amendments include an affordable housing conversion exemption, an exemption for all community banks (defined as institutions under $10 billion in assets per the Federal Reserve), authority for the council to create future exemptions by ordinance, and a valuation method based on fair market value matching San Francisco's structure.

The other side: Councilmember Ramachandran pushed back hard on the exemptions. "I have reservations on this community bank. A $10 billion company is pretty big," she said. "That leaves a lot of room for predatory lenders, foreign entities, et cetera, to come in and not pay the tax." She also noted a significant revenue gap: the city administrator's report estimated only $400,000 to $1 million annually, far below Wong's multi-million-dollar projections. Wong explained that the finance department's estimates excluded deed-in-lieu-of-foreclosure transactions — the very deals most likely to generate the biggest revenue.

Ramachandran ultimately insisted on seeing amendments in writing before voting. "This is a complicated issue, and if voters need to be clear about what's going forward, I need to be clear what we're passing," she said.

Council President Jenkins signaled he would support the measure leaving committee but likely oppose it at full council. "I told Councilmember Wong that I would support it coming out of Rules, but most likely I'm not going to support it when it comes to full council," he said.

Decisions: Continued to July 2 Rules Committee (For: 3 — Brown, Ramachandran, Jenkins; Against: 1 — Fife). Fife voted no because she wanted to forward the measure immediately to full council. The City Attorney was directed to produce clean legislation incorporating all stated amendments.

What's next: The measure returns to Rules on July 2 with written amendments. If it clears committee and full council on July 7, it can make the November 2026 ballot deadline.

Two public commenters weighed in. Dan Cobb urged the committee to place it on the ballot, calling it a fix for a loophole in Measure X. Robert Joe Apodaca, a 40-year Oakland resident with housing development experience, began sharing background on housing finance but was cut off by the time limit.

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Houston Forces Early Hearing on Encampment Sites Before Closures Begin

Councilmember Merika Houston made an impassioned case to accelerate a city-owned property inventory report before Oakland's Encampment Abatement Policy takes effect July 14, arguing it makes no sense to begin clearing encampments without first identifying where displaced residents can go.

Why it matters: The EAP will begin closing encampments on July 14, but the city has not identified adequate relocation sites. "We're about to start closing down encampments," Councilmember Houston said. "People going to be unhoused. We ain't going to have no place to put them. And we're talking about it on the 14th, the day that it's going to be done."

Houston cited a specific example: a city-owned lot at 711 73rd Ave. in District 6 where the city invested $500,000, then closed the site without security. "Guess what happened. No security, no nothing. It was damaged. It was vandalized. Telephone poles were cut down. All the wires was pulled out," he said. The lot now needs an additional $300,000 to repair, and Houston noted the county had offered to fund a service provider if the site had been maintained.

The other side: Councilmember Fife, who chairs the Life Enrichment Committee where the item was originally scheduled for July 14, pushed back. She noted that city-owned parcels in her District 3 are too small for homelessness interventions and that the 90-day implementation delay was not her idea. "The city staff who do the cleanings and closures asked for 120 days, not 90 days," Councilmember Fife said. "This was not something that I just came up with. I was asked by our homelessness team to extend the time so they could put in standard operating procedures."

Decisions: After staff confirmed the report could be ready in time, the property inventory was moved to the July 7 full council meeting on non-consent. Houston also secured placement of the Commission on Homelessness EAP presentation on the July 7 agenda via Rule 28.

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Port Commission: Wong Gets Full Term

The committee unanimously advanced the reappointment of Alvina Wong to a full term on the Port of Oakland Board of Commissioners. Wong, currently completing a partial term, is the Base Building Director of the Asian Pacific Environmental Network (APEN) and a District 6 resident.

"A full term would really allow me to continue supporting the Port's efforts in zero-emission transition, maintaining and growing our airport and seaport opportunities, while also meaningfully choosing real estate and contracting decisions that are rooted in Oakland and beyond," Commissioner Wong said.

Councilmember Fife praised Wong's range: "Your acumen around environment — our work around crematoriums in East Oakland, truck traffic through West Oakland and Chinatown — your broad depth of knowledge around environmental issues is so critical to bring to the Port of Oakland."

Decisions: Approved 4-0 (For: Brown, Fife, Ramachandran, Jenkins). Headed to July 7 council on consent.

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Minor Items

• AC Transit budget presentation moved from consent to non-consent for the July 7 council meeting at Council President Jenkins' request, ensuring the full council hears about potential service cuts and their community impact.
• Sanctuary city ordinance, amended to remove provisions that would have allowed OPD cooperation with federal immigration detainers, forwarded to July 7 council on consent.
• Costco exclusive negotiation agreement for a new store at 101 Admiral Robert Toney Way forwarded to July 7 council on consent.
• HUD Annual Action Plan accepting $14.7 million in federal funds forwarded to July 7 council as a public hearing.
• Temporary street closures near International Blvd. to combat sex trafficking forwarded to July 7 council as a public hearing.
• Business improvement district annual reports with 3%–5% assessment increases forwarded to July 7 council.
• Broadway Streetscape $20.9 million contract withdrawn and rescheduled.
• Sideshow penalty ordinance placed on the Public Safety Committee pending list with no date.
• AB 1588 sideshow bill support (Item 3.27) continued to next week's Rules Committee.
• Committee outstanding items schedule (Item 2) approved 4-0 with no changes.
• Public commenter Rajni Mandal, a District 4 resident, raised concerns about public participation safety at City Hall, citing heckling at a recent Public Safety Committee meeting and a shooting near City Hall. She urged the council to continue accepting emails and e-comments. Mandal also requested a status update on the Flock community camera program approved in December but not yet executed and called for a citywide technology modernization plan.
• Public commenter Blair Beekman addressed the sanctuary city policy, Flock surveillance oversight, the Costco development, and the police chief recruitment process, urging more community involvement.