SR-07-22-2014-8Cwof it Council Report
Sauia Mouica
City Council Meeting: July 22, 2014
Agenda Item: S "C
To: Mayor and City Council
From: Marsha Jones Moutrie, City Attorney
Subject: Proposed Ballot Measure Amending the City Charter To Establish A
Maximum Registration Fee Of $288 Per Controlled Rental Housing Unit
And Allowing A Pass Through of Fifty Percent of The Fee.
Recommended Action
Staff recommends that the City Council adopt the attached resolution placing a measure
on the November 4, 2014 ballot that would amend Title XVIII of the City Charter (The
Rent Control Law), to provide for a maximum annual registration fee of $288 per
controlled rental unit and to allow landlords to pass through to tenants 50% of the
annual registration fee.
Executive Summary
The Rent Control Board ( "Rent Board ") has recommended to the City Council that an
amendment to the City Charter be placed on the November ballot in order to establish a
cap of $288 on the annual registration fee for an individual controlled rental unit and to
allow 50% of the annual registration fee for a unit to be passed through by the landlord
to the tenant. On July 8, 2014, Council accepted the Rent Board's recommendation and
directed staff to prepare the resolution necessary to place the measure on the ballot.
The attached resolution fulfills that direction. It requests and directs that the measure
be placed before the voters at the general election in November.
Background
In May of this year, the Rent Board's staff recommended to the Rent Board that it
consider asking the Council to place on the ballot a measure that would establish a cap
of $288 per controlled rental unit on the annual registration fee for a controlled rental
unit. Rent Board staff explained in their report to the Rent Board that the measure
would ensure stable support for the Rent Board's operations and services and insulate
the Rent Board against litigation that would divert resources away from services. The
report further explained that, each year, the fee would be set in an amount necessary to
1
cover the actual cost of the Rent Board's services and that the fee would likely not reach
the level of the cap for over a decade.
Additionally, Rent Board staff proposed that the measure should authorize landlords to
pass through to tenants 50% of the fee amount. Rent Board staff explained that
allowing a pass through of half the fee would be fair because the Rent Board staff
provides services to both tenants and landlords and because vacancy decontrol
coupled with market realities in Santa Monica ensure that landlords can afford to bear
the cost of half of the registration fees.
City staff concurred and recommended that Council grant the Rent Board's request to
place the measure on the ballot. On July 8, 2014, Council heard public testimony on
the matter, deliberated, and approved the Rent Board's request.
Discussion
The attached resolution fulfills the Council's direction to place the matter on the
November ballot. The resolution requests and directs the County to place the measure
on the November ballot. Additionally, the resolution contains the text of the question
that will be put to the voters. And, the resolution includes space for designating
members of the Council to file written arguments relating to the measure. The text of
the measure appears as Exhibit 1 to the resolution.
Next Steps
Once Council adopts the resolution, an impartial analysis will be prepared by the City
Attorney. That analysis and any arguments for or against the measure, as well as any
rebuttal, will be mailed to all qualified voters with the sample ballot. Additionally, neither
less than 40 nor more than 60 days prior to the election, the City Clerk will also cause
the text of the measure to be published in the newspaper used to provide official notice
to the public.
Financial Impacts & Budget Actions
Based on past practice, staff assumes that the Rent Board would reimburse the City for
any additional costs incurred by the City as a result of placing this measure on the
November ballot.
Prepared by: Marsha Jones Moutrie
Approved:
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Mars4a,Jon "s ¢Jloutrie
City Attorney
Forwarded to Council:
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Rod Gould
City Manager
Attachments: Resolution Placing Measure on Ballot
Exhibit 1
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Reference:
Resolution No. 10826
(CCS)