The Cambridge City Council last night defeated the recommendation of the City Manager that John A. Lunn and E. Robert Livernash, professor of Business Administration, be reappointed to their position on the Cambridge Redevelopment Authority. The Council further directed the City Manager, when making further CRA appointments, to;

* give due consideration to representation for the black community and residents of areas affected by Authority programs;

* take necessary steps to bring about a "reasonable rotation" of authority membership.

Lunn, a member of the M.I.T. corporation, and Livernash are both long-time members of the five-man Authority. They came under fire for their university connections and for the fact that neither lives in an area affected by urban renewal. "One represents Harvard and the other M.I.T.," said Councillor Alfred E. Vellucci.

The vote on Lunn was 4-3 with two councillors voting present. A majority vote of the council is needed to confirm an appointment. On Livernash the vote was 3-3-3. Councillor Thomas H. Mahoney voted in favor of the Lunn appointment and present on Livernash.

"I favor continuity, yet I find the 'new blood' arguments very convincing," Mahoney said in explaining his vote. "Therefore I will vote in favor of one and against the other."

Mahoney's polite came under attack from Vellucci who charged "He just wants to keep the guy from M.I.T. and give the axe to Harvard. The big bosses at M.I.T. told him 'vote for Lunn or we'll get rid of you.'" Mahoney is a professor at M.I.T.