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R-9778 F:\atty\muni\laws\mjm\ballotmeasuresrc-1.wpd City Council Meeting 6-25-02 Santa Monica, California RESOLUTION NUMBER 9778 (CCS) (City Council Series) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA SUBMITTING TO THE VOTERS TWO BALLOT MEASURES AT THE GENERAL MUNICIPAL ELECTION TO BE HELD ON TUESDAY, NOVEMBER 5,2002, AUTHORIZING CITY COUNCIL MEMBERS TO FILE WRITTEN ARGUMENTS FOR OR AGAINST THE MEASURES AND DIRECTING THE CITY ATTORNEY TO PREPARE AN IMPARTIAL ANALYSIS OF EACH MEASURE WHEREAS, on May 14, 2002, the City Council adopted a Resolution calling for and giving notice of a General Municipal Election on November 5, 2002; and WHEREAS, California Elections Code Section 9255 authorizes the governing body of a charter city to place charter amendments on the ballot; and WHEREAS, the City Council of the City of Santa Monica wishes to place the following two charter amendments on the ballot at the General Municipal Election to be held on November 5, 2002, NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES RESOLVE AND PROCLAIM AS FOLLOWS: SECTION 1. A General Municipal Election shall be called for November 5, 2002, for the purpose, among other things, of submitting two initiative measures to the voters. 1 SECTION 2. At the General Municipal Election called for November 5, 2002, the following proposition shall be submitted to the qualified electors of the City of Santa Monica: PROPOSITION"." Shall the City Charter's provisions governing eviction from controlled rental units be amended to extend protections to the spouses, children or domestic partners of tenants who die or become incapacitated, to YES clarify that the term "housing service" includes the number of tenants authorized to occupy a unit, to clarify how rent increases authorized by state law are computed, to clarify the remedies for unlawful attempts to recover possession, to create specified protections against evictions NO for occupying tenants who replace authorized co-tenants or subtenants, and to require that the Municipal Code contain protections against tenant harassment? SECTION 3. At the General Municipal Election called for November 5, 2002, the following proposition shall be submitted to the qualified electors of the City of Santa Monica: 2 PROPOSITION "." Shall the City Charter be amended to increase Rent Control Board YES members' compensation from $75.00 to $150.00 per meeting, with a limit of $6,000.00 per year, and to provide that they shall receive health care benefits? NO SECTION 4. The City Clerk shall transmit to the City Attorney, in accordance with Elections Code Section 9280, a copy of each of the foregoing measures. The City Attorney shall prepare an impartial analysis of each, which analysis shall not exceed 500 words in length each. The impartial analysis shall be filed by the date set by the City Clerk for the filing of primary arguments. In accordance with Elections Code Section 9295, not less than 10 calendar days before the City Clerk submits the official election materials for printing, the City Clerk shall make a copy of all applicable elections materials available for public examination in the City Clerk's office. SECTION 5. The City Council authorizes its members, as follows, to file written arguments for or against the measures described above and which are contained in Exhibits 1 and 2 to this Resolution, which Exhibit is incorporated by reference herein: 3 (a) Proposition concerning amending City Charterto contain protections against evictions based on subtenancies, among other things: FOR: Richard Bloom, Michael Feinstein, Ken Genser, and Kevin McKeown. AGAINST: None. (b) Proposition concerning amending City Charter to increase Rent Control Board members' compensation, among other things: FOR: Richard Bloom, Michael Feinstein, Ken Genser, and Kevin McKeown. AGAINST: None. All written arguments filed by any person in favor of or against any measure, including any rebuttal arguments, shall be accompanied by the names and signatures of the persons submitting the argument as required by applicable law, and any names, signatures and arguments may be filed until the time and date fixed by the City Clerk, after which no change may be submitted to the City Clerk unless permitted by law. SECTION 6. The City Clerk shall cause the text of each measure, which are contained in Exhibits 1 and 2, together with the City Attorney impartial analysis, and any arguments for or against each measure, as well as any rebuttal, to be mailed to all qualified voters with the sample ballot. In addition to other notices and publications required by law, the City Clerk, not less than forty (40) days and not more than sixty (60) days before the General Municipal Election, shall cause the text of each measure to be published once in the official newspaper and in each edition thereof during the day of publication. The City 4 Clerk is authorized to give such notices and to fix such times and dates as are required by law or which are appropriate to conduct properly the election. SECTION 7. The provisions of Resolution Number 9760 (CCS) are referred to for more particulars concerning the General Municipal Election to be held on November 5, 2002 and in all respects the election shall be held and conducted as provided for by applicable law. The City Clerk is authorized and directed to procure and furnish any official ballots, notices, printed materials and all supplies or equipment that may be necessary in order to properly and lawfully conduct the election. SECTION 8. The City Clerk shall certify to the adoption of this Resolution, and thenceforth and thereafter the same shall be in full force and effect. APPROVED AS TO FORM: 5 EXHIBIT 1 PROPOSAL BY THE CITY COUNCIL OF THE CITY OF SANTA MONICA TO BE SUBMITTED TO THE VOTERS OF A PROPOSED AMENDMENT TO THE CHARTER OF THE CITY OF SANTA MONICA, CALIFORNIA Section 1800 of the City Charter of the City of Santa Monica is amended to read as follows: Section 1800. Statement of purpose. A growing shortage of housing units resulting in a low vacancy rate and rapidly rising rents exploiting this shortage constitute a serious housing problem affecting the lives of a substantial portion of those Santa Monica residents who reside in residential housing. In addition, speculation in the purchase and sale of existing residential housing units results in further rent increases. These conditions endanger the public health and welfare of Santa Monica tenants, especially the poor, minorities, students, young families, and senior citizens. The purpose of this Article, therefore, is to alleviate the hardship caused by this serious housing shortage by establishing a Rent Control Board empowered to regulate rentals in the City of Santa Monica so that rents will not be increased unreasonably and so that landlords will receive no more than a fair return. In orderto accomplish this purpose, this Article provides for an elected Rent Control Board to ensure that rents are at a fair level by requiring landlords to justify any rents in excess of the rents in effect one year prior to the adoption of this Article. Tenants may seek rent reductions from the rent in effect one year prior to the adoption of this Article by establishing that 1 those rents are excessive. In addition to giving tenants an opportunity to contest any rent increase, this Article attempts to provide reasonable protection to tenants by controlling removal of controlled rental units from the housing market and by requiring just cause for any eviction from a controlled rental unit. Through this Article, the City exercises its police power in order to address the serious housing problem recognized in the original enactment of this Rent Control Law in 1979 and still existing in 4984- 2002. The 1984 and the 2002 Amendment~ to the Rent Control Law is are intended to clarify the law and ensure that the Rent Control Board possesses adequate and independent authority to carry out its duties. tHs- They are intended to ensure due process of law for landlords and tenants, effective remedies for violation of the law, and consistency with constitutional requirements. tt-is They are also intended to enable the Board to provide relief to persons facing particular hardship and to protect and increase the supply of affordable housing in the City. Termination or erosion of the protections of this Article would have serious disruptive consequences for persons in need of protection and the supply of affordable housing in the City. 2 Section 1801 of the City Charter of the City of Santa Monica is amended to read as follows: Section 1801. Definitions. The following words or phrases as used in this Article shall have the following meanings: (a) Board. The term "Board" refers to the elected Rent Control Board established by this Article. (b) Commissioners. The members of the Board and Interim Board are denominated Commissioners. (c) Controlled Rental Units. All residential rental units in the City of Santa Monica, including mobile homes, and mobile home spaces, and trailers and trailer spaces, except single family homes to the extent provided for in Section 1815 and those units found by the Board to be exempt under one or more of the following provisions: (1) Rental units in hotels, motels, inns, tourist homes and rooming and boarding houses which are rented primarily to transient guests for a period of less than fourteen (14) days. (2) Rental units in any hospital, convent, monastery, extended medical care facility, asylum, non-profit home for the aged, or dormitory owned and operated by an institution of higher education. (3) Rental units which a government unit, agency or authority owns, operates, manages, or in which governmentally subsidized tenants reside 3 only if applicable Federal or State law or administrative regulation specially exempt such units from municipal rent control. (4) Rental units in owner-occupied dwellings with no more than three (3) units. For purposes of this Section: (i) The term "owner" means a natural person who owns a fifty (50) percent ownership interest in the building and resides on the property as his or her principal place of residence. (ii) An exemption under this Section shall expire by operation of law when the owner ceases to reside on the property as his or her principal place of residence; thereafter, all units on the property shall be subject to all provisions of this Article. (5) Rental units and dwellings constructed after the adoption of this Article; this exemption does not apply to units created as a result of conversion as opposed to new construction. (6) Where a unit is actually used for purposes of providing, on a nonprofit basis, child care or other residential social services in accordance with applicable laws. This exemption shall expire when the use upon which exemption is based ceases. This exemption shall only apply to units as they become vacant and shall only operate to allow the specified use without the necessity of obtaining a removal permit under this Article. This exemption shall not be construed to authorize the eviction of any tenant nor to authorize the charging of rent in excess of that permitted under this Article. The Board 4 may adopt regulations to determine whether a unit qualifies for an exemption under this Section. (7) Exemptions are not automatic but shall be granted by the Board upon application by the owner pursuant to Board rules, provided that if the Board does not act upon a completed application for exemption within ninety (90) days of its filing it shall be deemed approved. (d) Housing Service. Housing services include, but are not limited to repairs, maintenance, painting, providing light, hot and cold water, elevator service, window shades and screens, storage, kitchen, bath and laundry facilities and privileges, janitor services, refuse removal, furnishings, telephone, parking, the right to have a specified number of occupants, and any other benefit, privilege or facility connected with the use or occupancy of any rental unit. Services to a rental unit shall include a proportionate part of services provided to common facilities of the building in which the rental unit is contained. (e) landlord. An owner, lessor, sublessor or any other person entitled to receive rent for the use and occupancy of any rental unit, or an agent, representative or successor of any of the foregoing. (f) Rent. All periodic payments and all nonmonetary consideration including but not limited to, the fair market value of goods or services rendered to orforthe benefit of the landlord under an agreement concerning the use or occupancy of a rental unit and premises including all payment and 5 consideration demanded or paid for parking, pets, furniture, subletting and security deposits for damages and cleaning. (g) Rental Housing Agreement. An agreement, oral, written or implied, between a landlord and tenant for use or occupancy of a rental unit and for housing services. (h) Rental Units. Any building, structure, or part thereof, or land appurtenant thereto, or any other rental property rented or offered for rent for living or dwelling house units, together with all housing services connected with use or occupancy of such property such as common areas and recreational facilities held out for use by the tenant. (i) Tenant. A tenant, subtenant, lessee, sublessee or any other person entitled under the terms of a rental housing agreement to the use or occupancy of any rental unit. U) Recognized Tenant Organization. Any group of tenants residing in controlled rental units in the same building or in different buildings operated by the same management company, agent or landlord, who requests to be so designated. (k) Rent Ceiling. Rent ceiling refers to the limit on the maximum allowable rent which a landlord may charge on any controlled rental unit. (I) Base Rent Ceiling. The maximum allowable rent established in Section 1804(b). (m) Property. All rental units on a parcel or lot or contiguous parcels 6 or contiguous lots under common ownership. (n) Single Family Home. A property that has been developed with only one one-family dwelling and any lawful accessory structures, or a lawfully created condominium, stock cooperative or similar unit that is part of a larger residential structure or complex, excepting those condominiums, stock cooperatives, or similar units converted after April 10, 1979 for which no removal permit or vested right determination has been issued by the Board, and those created pursuant to Article XX of this Charter. Section 1804 of the City Charter of the City of Santa Monica is amended to read as follows: Section 1804. Maximum allowable rents. (a) Temporary Freeze. Rents shall not be increased during the one hundred-twenty (120) day period following the date of adoption of this Article. (b) Establishment of Base Rent Ceiling. Beginning one-hundred-twenty (120) days after the adoption of this Article, no landlord shall charge rent for any controlled rental units in an amount greater than the rent in effect on the date one year prior to the adoption of this Article. The rent in effect on that date is the base rent ceiling and is a reference point from which fair rents shall be adjusted upward or downward in accordance with Section 1805. If there was no rent in effect on the date one year prior to the adoption of this Article, the base rent ceiling shall be the rent that was 7 charged on the first date that rent was charged following the date one year prior to the adoption of this Article. For tenancies commencing on or after January 1. 1999. which qualify for a vacancy rent increase pursuant to state law. the base rent ceiling is the initial rental rate in effect on the date the tenancy commences. As used in this subsection. the term "initial rental rate" means only the amount of rent actually paid by the tenant for the initial term of the tenancy. (c) Posting. As soon as the landlord is aware of the maximum allowable rent, the landlord shall post it for each unit in a prominent place in or about the affected controlled rent units. The Board may require that other information it deems relevant also be posted. Section 1806 of the City Charter of the City of Santa Monica is amended to read as follows: Section 1806. Eviction. fill No landlord shall take action to terminate any tenancy including service of. but not limited. to making a demand for possession of a rental unit. threatening to terminate a tenancy. serving any notice to quit or other eviction notice or bringln.g any action to recover possession or be granted recovery of possession of a controlled rental unit unless: (a1) The tenant has failed to pay the rent to which the landlord is entitled under the rental housing agreement and this Article. 8 (b~J The tenant has committed material and substantial breach of an obligation or covenant of his or her tenancy which the landlord has not waived either expressly or impliedly through the landlord's conduct and which the landlord is not estopped from asserting, other than the obligation to surrender possession upon proper notice, and the tenant has failed to cure such violation after having received written notice thereof from the landlord in the manner required by law. Notwithstanding any contrary provision in this Section, and notwithstanding any contrary provision in the rental housing agreement. a landlord shall not take any action to terminate a tenancy based on a tenant's sublease of the unit if the following requirements are met: (i) The tenant continues to reside in the rental unit. (ii) The sublease replaces a departed tenant(s) under the rental agreement on a one-for-one basis. (iii) The landlord has unreasonably withheld the riqht to sublease following written request by the tenant. If the landlord fails to respond to the tenant in writing within fourteen (14) days of receipt of the tenant's written request. the tenant's request shall be deemed approved by the landlord. (e~) The tenant is committing or expressly permitting a nuisance in, or is causing substantial damage to, the controlled rental unit, or is creating a substantial interference with the comfort, safety, or enjoyment of the landlord or other occupants or neighbors of the same. (d~J The tenant is convicted of using or expressly permitting a 9 controlled rental unit to be used for any illegal purpose. (eQ) The tenant, who had a rental housing agreement which had terminated, has refused, after written request or demand by the landlord, to execute a written extension or renewal thereof for a further term of like duration and in such terms as are not inconsistent with or violative of any provisions of this Article and are materially the same as in the previous agreement. (fQ) The tenant has refused the landlord reasonable access to the controlled rental unit for the purposes of making necessary repairs or improvements required by the laws of the United States, the State of California or any subdivision thereof or for the purpose of showing the rental housing to any prospective purchaser or mortgagee. (gZ) The tenant holding at the end of the term of the rental housing agreement is a subtenant not approved by the landlord. (h~) The landlord seeks to recover possession in good faith for use and occupancy by herself or himself, or her or his children, parents, grandparents, brother, sister, father-in-law, mother-in-law, son-in-law, or daughter-in-law. For purposes of evictions under this Subsection: (41) A "landlord" shall be defined as a natural person who has at least a fifty (50) percent ownership interest in the property. (2m No eviction may take place if any landlord or enumerated relative already occupies one unit on the property, or if a vacancy already exists on the property and the vacant unit is comparable to the unit for which eviction 10 is sought. Where the vacant unit is determined not to be comparable, thereby permitting eviction under this Subsection, the evicted tenant or tenants shall be first given the right to occupy the vacant unit and the rent thereof shall be the lesser of the maximum allowable rent for the vacant unit and the maximum allowable rent of the unit from which the tenant or tenants are evicted. The Rent Control Board shall promulgate regulations defining when a unit is comparable for purposes of this paragraph. (3iii) The notice terminating tenancy shall contain the name, address and relationship to the landlord of the person intended to occupy. (4iv) The landlord or enumerated relative must intend in good faith to move into the unit within thirty (30) days after the tenant vacates and to occupy the unit as a primary residence for at least one year. The Board may adopt regulations governing the determination of good faith. (5y) If the landlord or relative specified on the notice terminating tenancy fails to occupy the unit within thirty (30) days after the tenant vacates, the landlord shall: fiJA. Offer the unit to the tenant who vacated it. tH]B. Pay to said tenant all reasonable expenses incurred in moving to and/or from the unit. (6vi) No eviction pursuant to this Subsection shall be allowed in any condominium or stock cooperative unit which has been converted from an apartment or other rental unit after April 10, 1979, unless the Rent Control Board has issued a removal permit or declared a vested right for said unit. 11 As used in this subpart, a unit shall be deemed converted after April 10, 1979, if on April 10, 1979, the recorded tract map or parcel map for the property showed the unit as included in the property. (t~) The landlord seeks to recover possession to demolish or otherwise remove the controlled rental unit from rental residential housing use after having obtained all proper permits from the City of Santa Monica. (10) The landlord has filed the requisite documents with the Rent Control Board initiating the procedure for withdrawing units from rent or lease under Government Code Section 7060 et. seq. and the Board's regulations, with the intention of completing the withdrawal process and going out of the residential rental business. (b) Notwithstanding any contrary provision in this Section or in the rental housing agreement. if the tenant's spouse. child(ren). and/or domestic partner who has filed an Affidavit of Domestic Partnership with the City have lived in the unit for at least one year at the time the tenant vacates the unit due to death or incapacitation. the landlord is prohibited from taking any action to obtain possession of the unit from the tenant's spouse. child(ren ). and/or registered domestic partner on the ground that the spouse. child(ren) and/or registered domestic partner are not authorized to occupy the unit. 1ill Notwithstanding the above provisions, possession shall not be granted if it is determined that the eviction is in retaliation for the tenant reporting violations of this Article, for exercising rights granted under this Article, including the right to withhold rent upon authorization of the Board 12 under Section 1803(q) or Section 1809 or for organization other tenants. @ In any notice purporting to terminate tenancy the landlord shall state the cause for the termination, and in any action brought to recover possession of a controlled rental unit, the landlord shall allege and prove compliance with this Section. The landlord shall file with the Rent Control Board a copy of any notice terminating tenancy. except a three day notice to pay rent or vacate. within 3 days after serving the notice on the tenant. Ull Failure to comply with any requirement of this Section may be asserted as an affirmative defense in an action brought by the landlord to recover possession of the unit. Additionally. Any any attempt to recover possession of a unit in violation of this Section Article shall render the landlord liable to the tenant for actual and punitive damaqes. including damages for emotional distress. in a civil action for actual and punitive damages wrongful eviction. The tenant or the Rent Control Board may seek iniunctive relief and money damages for wrongful eviction. The prevailing party in an action based upon this Section for wrongful eviction shall recover costs and reasonable attorneys fees. Section 1821 is added to the City Charter of the City of Santa Monica to read as follows: Section 1821. Tenant harassment. Tenants living in rental housing units have the right to quiet enioyment. privacy and freedom from harassment by the property owner. In 13 order to effectuate this right. the City Council shall at all times maintain a Tenant Harassment Ordinance in force which protects tenants from landlords' malicious conduct in derogation of tenants' rights. f:\atty\mu n i\laws \mj m \ballotmeasu resrcexh ibit2. wpd 14 EXHIBIT 2 PROPOSAL BY THE CITY COUNCIL OF THE CITY OF SANTA MONICA TO BE SUBMITTED TO THE VOTERS OF A PROPOSED AMENDMENT TO THE CHARTER OF THE CITY OF SANTA MONICA, CALIFORNIA Section 1803 of the City Charter of the City of Santa Monica is amended to read as follows: Section 1803. Permanent Rent Control Board. (a) Composition. There shall be in the City of Santa Monica a Rent Control Board. The Board shall consist of five (5) elected Commissioners. The Board shall elect annually as chairperson, one of its members to serve in that capacity. (b) Eligibility. Duly qualified electors of the City of Santa Monica are eligible to serve as Commissioners of the Board. (c) Full Disclosure of Holdings. Candidates for the position of Commissioner shall submit a verified statement listing all of their interests and dealings in real property, including but not limited to its ownership, sale or management, during the previous three (3) years. (d) Election of Commissioners. Commissioners shall be elected at general municipal elections in the same manner as set forth in Article XIV of the Santa Monica Charter, except that the first Commissioners shall be elected at a special municipal election held within ninety (90) days of the adoption of this Article. The elected Commissioners shall take office on the first Tuesday following their election. 1 (e) Term of Office. Commissioners shall be elected to serve terms of four (4) years, beginning on the first Tuesday following their election, except that of the first five (5) Commissioners elected in accordance with Section 1803(d), the two (2) Commissioners receiving the most votes shall serve until April 15, 1985 and the remaining three (3) Commissioners shall serve until April 18, 1983. Commissioners shall serve a maximum of two (2) full terms. (f) Powers and Duties. The Board shall have the following powers and duties: (1) Set the rent ceilings for all controlled rental units. (2) Require registration of all controlled rental units under Section 1803(q). (3) Establish a base rent ceiling on rents under Section 1804(b). (4) To make adjustments in the rent ceiling in accordance with Section 1805. (5) Set rents at fair and equitable levels in order to achieve the intent of this Article. (6) Hire and pay necessary staff, including hearing examiners and personnel to issue orders, rules and regulations, conduct hearings and charge fees as set forth below. (7) Make such studies, surveys and investigations, conduct such hearings, and obtain such information as is necessary to carry out its 2 powers and duties. (8) Report annually to the City Council of the City of Santa Monica on the status of controlled rental housing. (9) Remove rent controls under Section 1803(r). (10) Issue permits for removal of controlled rental units from rental housing market under Section 1803(t). (11) Administer oaths and affirmations and subpoena witnesses. (12) Establish rules and regulations for deducting penalties and settling civil claims under Section 1809. (13) Refer violations of this Article to appropriate authorities for criminal prosecution. (14) Seek injunctive and other civil relief under Section 1811. (15) Charge and collect registration fees, including penalties for late payments. (g) Rules and Regulations. The Board shall issue and follow such rules and regulations, including those which are contained in this Article, as will further the purposes of this Article. The Board shall publish its rules and regulations prior to promulgation in at least one newspaper of general circulation in the City of Santa Monica. The Board shall hold at least one public hearing to consider the views of interested parties prior to the adoption of general adjustments of the decision to decontrol or reimpose control for any class of rental units under Section 1803(r). All rules and regulations, internal staff memoranda, and written correspondence 3 explaining the decisions, orders, and policies of the Board shall be kept in the Board's office and shall be available to the public for inspection and copying. The Board shall publicize this Article so that all residents of Santa Monica will have the opportunity to become informed about their legal rights and duties under Rent Control in Santa Monica. The Board shall prepare a brochure which fully describes the legal rights and duties of landlords and tenants under Rent Control in Santa Monica. The brochure will be available to the public, and each tenant of a controlled rental unit shall receive a copy of the brochure from his or her landlord. (h) Meetings. The Board shall hold such regularly scheduled meetings as are necessary to ensure the timely performance of its duties under this Article. All regular and special meetings shall be called and conducted in accordance with State law. (i) Quorum. Three (3) Commissioners shall constitute a quorum for the Board. U) Voting. The affirmative vote of three (3) Commissioners of the Board is required for a decision, including all motions, regulations, and orders of the Board. (k) Compensation. Commissioners shall receive compensation in the amount of each Commissioner shall receive for every meeting attended seventy-fi"ve dollars One Hundred Fifty Dollars ($=7-5150.00) for every meeting attended. ,but in no event shall any Commissioner receive 4 in any rwelve (12) month period more than forty-seven hundred and fifty dollars ($4,750) for services rendered. This compensation shall be automatically increased effective July 1 of each year. in an amount equal to the increase in the Consumer Price Index (CPI) for the twelve month period immediately preceding July 1. As used in this paragraph. the CPI shall be the index for All Urban Consumers for the Los Angeles. Long Beach. Anaheim Metropolitan Area (All Items). provided by the United States Bureau of Labor Statistics or other comparable index as may be developed to take its place. However. in no event shall any Commissioner receive in any twelve (12) month period more than Six Thousand Dollars ($6.000) for services rendered. Additionally, Commissioners shall receive medical. dental. and health benefits. provided these benefits are routinely and customarily available to City miscellaneous employees. (I) Dockets. The Board shall maintain and keep in its office all hearing dockets. (m) Vacancies. If a vacancy shall occur on the Board, the Board shall within thirty (30) days appoint a qualified person to fill such a vacancy until the following general municipal election when a qualified person shall be elected to serve for the remainder of the term. (n) Financing. The Board shall finance its reasonable and necessary expenses by charging landlords annual registration fees in 5 amounts deemed reasonable by the Board. The Board may direct that all or part of such fees may be passed through from landlords to tenants and may establish applicable conditions and procedures. The Board is also empowered to request and receive funding when and if necessary from any available source for its reasonable and necessary expenses. (0) Recall. Commissioners may be recalled in accordance with the provisions of Article XIV of the Santa Monica Charter. (p) Staff. The Board shall employ and pay such staff, including hearing examiners and inspectors, as may be necessary to perform its function efficiently in order to fulfill the purpose of this Article. (q) Registration. Within sixty (60) days after the adoption of this Article, the Board shall require the registration of all controlled rental units, which shall be re-registered at times deemed appropriate by the Board. The initial registration shall include the rent in effect at the time on the date of the adoption of this Article, base rent ceiling, the address of the rental unit, the name and address of the landlord, the housing services provided to the unit, a statement indicating all operating cost increases since the base rent ceiling date, and any other information deemed relevant by the Board. The Board shall require the landlord to report vacancies in the controlled rental units and shall make a list of vacant controlled rental units available to the public. If the Board, after the landlord has proper notice and after a hearing, determines that a landlord 6 has wilfully and knowingly failed to register a controlled rental unit, the Board may authorize the tenant of such a non-registered controlled rental unit to withhold all or a portion of the rent for the unit until such time as the rental unit is properly registered. After a rental unit is properly registered, the Board shall determine what portion, if any, of the withheld rent is owed to the landlord for the period in which the rental unit was not properly registered. Whether or not the Board allows such withholding, no landlord who has failed to register properly shall at any time increase rents for a controlled rental unit until such units are properly registered. (r) Decontrol. If the average annual vacancy rate in any category, classification, or area of controlled rental units exceeds 5 percent, the Board is empowered, at its discretion and in order to achieve the objectives of this Article, to remove rent controls from such category, classification or area. The Board may determine such categories, classifications, or areas for purposes of decontrol consistent with the objectives of this Article. In determining the vacancy rate for any category, classification or area of controlled rental units, the Board shall consider all available data and shall conduct its own survey. If units are decontrolled pursuant to this Subsection, controls shall be reimposed if the Board finds that the average annual vacancy rate has thereafter fallen below 5 percent for such category, classification or area. (s) Security Deposits. Any payment or deposit of money the 7 primary function of which is to secure the performance of a rental agreement or any part of such agreement, including an advance payment of rent, shall be placed in an interest bearing account at a federally insured financial institution until such time as it is returned to the tenant or entitled to be used by the landlord. Unless and until the Board enacts regulations directing that the interest on such accounts be paid directly to the tenant, the landlord may either pay such interest directly to the tenant or use it to offset operating expenses, in which case the offset shall be a factor in making individual rent adjustments under Section 1805. The Board may regulate the amount and use of security deposits consistent with the purposes of this Article and State law. (t) Removal of Controlled Unit From Rental Housing Market. (1) Any landlord who desires to remove a controlled rental unit from the rental housing market by demolition, conversion or other means is required to obtain a permit from the Board prior to such removal from the rental housing market in accordance with rules and regulations promulgated by the Board. In order to approve such a permit, the Board is required to find that the landlord cannot make a fair return by retaining the controlled rental unit. (2) Notwithstanding the foregoing provisions of this Subsection, the Board may approve such a permit: (i) If the Board finds that the controlled rental unit is uninhabitable and is incapable of being made habitable in an economically feasible 8 manner; or (ii) If the permit is being sought so that the property may be developed with multifamily dwelling units and the permit applicant agrees as a condition of approval, that the units will not be exempt from the provisions of this Article pursuant to Section 180 1 (c) and that at least 15 percent of the controlled rental units to be built on the site will be at rents affordable by persons of low income. (3) The Housing Element of the General Plan of the City of Santa Monica shall at all times contain a provision that neither the City Council nor any City agency shall approve an application for tentative subdivision map or tentative parcel map for a converted unit until and unless the applicant first obtains a removal permit as required by this Section. This Subsection shall not apply to any tentative subdivision map or tentative parcel map approved in accordance with Article XX relating to tenant ownership rights. (4) The Board shall render its final decision within one hundred and twenty (120) days of the filing of a completed application under this Section. F :\atty\mu ni\laws\mjm\ballotmeasu resrcexh ibit1 . wpd 9 EXHIBIT B 5 CALIFORNIA ELECTIONS CODE SECTIONS 9280 THROUGH 9287 9266. DIVI' '\I 9. MEASURES SUBMITTED TO THE va 1S 9266. Examination of petition. After the petition has been filed, the elections official shall examine the petition in the same manner as are county petitions in accordance with Sec- tions 9114 and 9115, except that, for the purposes of this section, references in those sections to the board of supervisors shall be treated as references to the legislative body of the city or city and county. The expenses of signature veri- fication shall be provided by the governing body receiving the petition from the elections official. (Added by Stats. 1994, c. 920, 52.) 9267. Petitions not accepted. Petitions that do not substantially conform to the form requirements of this article shall not be accepted for filing by the elections official. (Added by Stats. 1994, c. 920, s2.) 9268. Conduct of election and publication requirements. The conduct of election and publication requirements shall substantially conform with Part 1 (commencing with Section 10000) and Part 2 (commenc- ing with Section 10100) of Division 10. (Added by Stats. 1994, c. 920, 52.) 9269. Resolution upon completion of canvass. Upon the completion of the canvass of votes, the governing body of a city or city and county shall pass a resolution reciting the fact of the election and such other matters as are enumerated in Section 10264. The elections official of the city or city and county shall then cause the adopted measures to be sub- mitted to the Secretary of State pursuant to Sections 34459 and 34460 of the Government Code. (Added by Stats. 1994, c. 920, S2.) Article 4. Arguments Concerning City Measures 9280. City attorney to prepare impartial analysis. Whenever any city measure qualifies for a place on the ballot, the govern- ing body may direct the city elections official to transmit a copy of the mea- sure to the city attorney, unless the organization or salaries of the office of the city attorney are affected. The city attorney shall prepare an impartial analy- sis of the measure showing the effect of the measure on the existing law and the operation of the measure. If the measure affects the organization or sala- ries of the office of the city attorney, the governing board may direct the city elections official to prepare the impartial analysis. The analysis shall be printed preceding the arguments for and against the measure. The analysis shall not exceed 500 words in length. In the event the entire text of the measure is not printed on the ballot, nor in the voter information portion of the sample ballot, there shall be printed immediately below the impartial analysis, in no less than lO-point bold type, a legend substantially as follows: "The above statement is an impartial analysis of Ordinance or Measure _' If you desire a copy of the ordinance or measure, please call the elec- tions official's office at (insert telephone number) and a copy will be mailed at no cost to you." (Added by Stats. 1994, c. 920, 52.) 2002 260 Chaptel l1unicipal Elections 9285. 9281. If not otherwise provided, voters may submit arguments. If no other method is provided by general law, or, in the case of a char- tered city, by the charter or by city ordinance, arguments for and against any city measure may be submitted to the qualified voters of the city pursuant to this article. If a method is otherwise provided by general law, or, in the case of a chartered city, by charter or city ordinance, for submitting arguments as to a particular kind of city measure, that method shall control. (Added by Stats. 1994, c. 920, &2.) 9282. Written arguments. The legislative body, or any member or members of the legislative body authorized by that body, or any individual voter who is eligible to vote on the measure, or bona fide association of citizens, or any combination of voters and associations, may file a written argument for or against any city measure. No argument shall exceed 300 words in length. The city elections official shall cause an argument for and an argument against the measure to be printed along with the following statement on the front cover, or if none, on the head- ing of the first page, of the printed arguments: " Arguments in support or opposition of the proposed laws are the opin- ions of the authors." The city elections official shall enclose a printed copy of both arguments with each sample ballot; provided, that only those arguments filed pursuant to this section shall be printed and enclosed with the sample ballot. The printed arguments are" official matter" within the meaning of Section 13303. Printed arguments submitted to voters in accordance with this section shall be titled either" Argument In Favor Of Measure _" or " Argument Against Measure _," accordingly, the blank spaces being filled in only with the letter or number, if any, designating the measure. At the discretion of the elections official, the word "Proposition" may be substituted for the word "Measure" in such titles. Words used in the title shall not be counted when determining the length of any argument. (Added by Stats. 1994, c. 920, &2.) 9283. Argument not accepted without names. A ballot argument shall not be accepted under this article unless accom- panied by the printed name and signature or printed names and signatures of the person or persons submitting it, or, if submitted on behalf of an organiza- tion, the name of the organization and the printed name and signature of at least one of its principal officers. No more than five signatures shall appear with any argument submitted under this article. In case any argument is signed by more than five persons, the signatures of the first five shall be printed. (Amended by Stats. 2000, c. 1081, &11.) 9285. Rebuttal arguments. (a) If any person submits an argument against a city measure, and an argument has been filed in favor of the city measure, the elections official shall immediately send copies of that argument to the persons filing the argu- ment in favor of the city measure. The persons filing the argument in favor of the city measure may prepare and submit a rebuttal argument not exceeding 250 words. The elections official shall send copies of the argument in favor of the measure to the persons filing the argument against the city measure, who may prepare and submit a rebuttal to the argument in favor of the city mea- sure not exceeding 250 words. The rebuttal arguments shall be filed with the 261 2002 9285. DIVI N 9. MEASURES SUBMITTED TO THE VC ~S elections official not more than 10 days after the final date for filing direct arguments. Rebuttal arguments shall be printed in the same manner as the direct arguments. Each rebuttal argument shall immediately follow the direct argument it seeks to rebut. (b) Subdivision (a) shall only apply if, not later than the day on which the legislative body calls an election, the legislative body, adopts its provisions by majority vote, in which case subdivision (a) shall apply at the next ensuing municipal election and at each municipal election thereafter, unless later repealed by the legislative body in accordance with the procedures of this subdivision. (Added by Stats. 1994, c. 920, S2.) 9286. Final date for arguments. Based on the time reasonably necessary to prepare and print the argu- ments and sample ballots and to permit the la-calendar-day public examina- tion as provided in Article 6 (commencing with Section 9295) for the particular election, the city elections official shall fix and determine a reason- able date prior to the election after which no arguments for or against any city measure may be submitted for printing and distribution to the voters, as pro- vided in this article. Arguments may be changed or withdrawn by their pro- ponents until and including the date fixed by the city elections official. (Added by Stats. 1994, c. 920, S2.) 9287. Elections official to select if more than one argument. If more than one argument for or more than one argument against any city measure is submitted to the city elections official within the time pre- scribed, he or she shall select one of the arguments in favor and one of the arguments against the measure for printing and distribution to the voters. In selecting the argument the city elections official shall give preference and pri- ority, in the order named, to the arguments of the following: (a) The legislative body, or member or members of the legislative body authorized by that body. (b) The individual voter, or bona fide association of citizens, or combina- tion of voters and associations, who are the bona fide sponsors or proponents of the measure. (c) Bona fide associations of citizens. (d) Individual voters who are eligible to vote on the measure. (Added by Stats. 1994, c. 920, S2.) Article 5. Mailings 9290. One copy of official material per household. Whenever the elections official is required to mail official matter, as pro- vided in Sections 9219, 9220, 9223, 9280, 9281, 9282, and 9285, only one copy of each piece of official matter shall be mailed to a postal address where two or more registered voters have the same surname and the same postal address. This section shall only apply if the legislative body of the city adopts this section and the election official conducting the election approves of the pro- ced ure. (Added by Stats. 1994, c. 920, S2.) 2002 262 SANTA MONICA MUNICIPAL CODE SECTION 11.04.125 Santa Monica Municipal Code or committee's campaign statement on which the loan is first reported. (c) A loan made to a candidate or committee by a commercial lending institution in the regular course of business on the same terms available to members of the public shall not be subject to the contribution limitations of this Chapter. (d) Extensions of credit, other than loans pursuant to subsection ( c) of this Section, for a period of more than thirty days are subject to the contribution limitations of this Chapter. (Prior code ~ 11206; added by Ord. No. 1630CCS ~ 1, adopted 6/9192) 11.04.090 Family contributions. (a) Contnbutions by a husband and wife shall be treated as separate contnbutions and shall not be aggregated under this Chapter. (b) Contributions by minors shall be treated as contri- butions by their parents or guardian and attnbuted equally to each parent or guardian. (prior code ~ 11207; added by Ord. No. 1630CCS ~ 1, adopted 6/9/92) 11.04.100 Filing of statements. Each candidate and each committee supporting or opposing a candidate or candidates or any ballot measure and each member of the Santa Monica Oty Council, Santa Monica Rent Control Board or any other elected office of the Oty of Santa Monica, shall file with the City Clerk each statement required under Chapter 4 of TitIe 9 of the Government Code (political Reform Act of 1974). (Prior code ~ 11208; added by Ord. No. 1630CCS ~ 1, adopted 619192) 11.04.110 Printed literature. All literature that is printed by or on behalf of any person, candidate or committee, including, but not limited to, small cards and billboards, shall be identified with the name and address of the candidate or committee, or chair- person and secretary, or at least two officers of the political group or organization on whose behalf or order the same is printed. If the literature is printed on behalf of any person or group of persons who are not also a candidate or committee, the person or group of persons shall be identified. Such identification of said persons shall be printed legibly and shall be appropriate to the size and type of the literature, but in no event shall such printing be less than in six point type. Compliance with Government Code Section 84305 et seq. shall be deemed compliance with this Section. (Prior code ~ 11209; added by Ord. No. 1630CCS ~ 1, adopted 6/9/92) 11.04.120 Candidate's statement of qualifications. (a) Each candidate for Santa Monica City Council, Santa Monica Rent Control Board, or other elected office of the City of Santa Monica, may prepare a statement of qualification on an appropriate form provided by the City Clerk. Such statement may include the name, age and occupation of the candidate and a brief description of no more than two hundred words of the candidate's education 11.04.080 and qualifications expressed by the candidate. Such state- ment shall be filed in the office of the City Clerk when the candidate's nomination papers are returned for filing. It may be withdrawn but not changed during the period for filing nomination papers and until five p.m. of the next working day after the close of the nomination period. (b) The City Clerk shall send to each voter, together with a sample ballot, a voter's pamphlet which contains the written statements of each candidate's qualifications that is prepared pursuant to this Section. The statement of each candidate shall be printed in type of uniform size and darkness and with uniform spacing. The City Clerk shall provide for and certify a Spanish translation to those candidates who wish to have one. ( c) The costs of printing, handling and translating of any statement submitted pursuant to this section shall be paid by the City. (d) The City Oerk shall reject any statement which contains any obscene, hbelous or defamatory matter, which violates the constitutional or civil rights of any person, or which is prohibited by state or federal law from being circulated through the mail. (e) Nothing in this Section shall be deemed to make any such statement or the authors thereof free or exempt from any civil or criminal action or penalty because of any false or hbelous statements offered for printing or contained in the voter's pamphlet. (prior code ~ 11210; added by Ord. No. 1630CCS ~ 1, adopted 6/9/92) 11.04.121 Ballot designations. ( a) In determining whether to accept a proposed ballot designation, the City Oerk shall utilize the Secretary of State Ballot Designation Regulations set forth in Chapter 7 of the California Administrative Code, as modified from time to time. To the extent this Chapter conflicts with the Secretary of State Ballot Designation Regulations, the provisions of this Chapter shall prevail. (b) To facilitate review of a candidate's proposed ballot designation by the City Oerk, each candidate must submit, at the time of filing his or her proposed ballot designation on the Declaration of candidacy, a completed ballot desig- nation worksheet on a form provided by the City Oerk. In addition to the information provided in the worksheet, the City Clerk may ask a candidate to provide additional information. The City Oerk must notify the candidate in the most expeditious manner of any rejection of a ballot designation within three working days of the candidate's submission. If the City Oerk rejects the ballot designation, the candidate shall have three additional working days to submit an alternate designation, together with a complet- ed ballot designation worksheet. (Added by Ord. No. 2007CCS ~ 5, adopted 4/24/01) 11.04.125 Rebuttal arguments. If any person submits an argument against a city mea- sure, and an argument has been filed in favor of the city measure, the City Clerk shall immediately send copies of that argument to the persons filing the argument in favor of the city measure. The persons filing the argument in favor of the city measure may prepare and submit a rebuttal 603 (Santa Monica 8-01) 11.04.125 Santa Monica Municipal Code to the argument against the measure not exceeding two hundred fifty words. Such rebuttal shall be signed by any one of the persons filing the original argument, any combi- nation of the persons signing the original argument or by all of the persons filing the original argument The rebuttal shall not be signed by any person who did not sign the original argument nor shall it contain more than five signa- tures. The City Clerk shall send copies of the argument in favor of the measure to the persons filing the argument against the city measure, who may prepare and submit a rebuttal to the argument in favor of the city measure not exceeding two hundred fifty words. Such rebuttal shall be signed by anyone of the persons filing the original argument, any combination of the persons signing the original argument or by all of the persons filing the original argument. The rebuttal shall not be signed by any person who did not sign the original argument nor shall it contain more than five signatures. The rebuttals shall be filed with the Oty aerk not more than ten days after the final date for filing original argu- ments or the date fixed by the City aerIc, whichever date is later. Rebuttals shall be printed in the same manner as the original arguments. Each rebuttal shall immediately follow the original argument it seeks to rebut. (Added by Ord. No. 2007CCS ~ 6, adopted 4/24/01) 11.04.130 Distribution of newsletter prohibited during campaign. No newsletter or similar matter shall be circulated by mass mailing or similar method by the Santa Monica City Council, Santa Monica Rent Control Board or their ad- ministrative officers as follows: (1) Within eighty-:-eight days prior to any municipal election to approve or disapprove any ballot measure; (2) Within eighty-eight days prior to an election to select any member of its governing body; (3) After any member of its governing body has filed a nomination petition pursuant to Section 11.04.010. This Section shall not apply to the circulation of newslet- ters or similar matter by mass mailing when an election is called pursuant to Santa Monica City Charter Section 603 to fill a vacancy on the City Council. (Prior code ~ 11211; added by Ord. No. 1630CCS ~ 1, adopted 6/9/92; amended by Ord. No. 1933CCS ~ 1, adopted 1119199) 11.04.140 Ballot order. In any election for any City office, the order in which a candidate's name or ballot measure shall appear on the ballot shall be randomly determined by the City aerk. (Prior code ~ 11212; added by Ord. No. 1630CCS ~ 1, adopted 6/9192) 11.04.150 Distribution of information for candi- dates and committees. In order to insure that each candidate and proponent or opponent of a measure has full opportunity to under- stand and fulfill the requirements of the Political Reform Act and Municipal Code, the City Clerk shall make avail- able to each candidate, to each proponent or opponent (Santa Monica 8-0J) of a measure and to each committee supporting or opposing a measure the latest revision of the State of California Information Manual on Campaign Disclosure Provisions of the Political Reform Act and a schedule outlining required filing dates for campaign statements. In addition, candidates are to receive a list outlining basic municipal candidacy requirements. (Prior code ~ 11215; added by Ord. No. 1109CCS, adopted 12112f78; amended by Ord. No. 2007CCS ~ 7, adopted 4/24/01) 11.04.155 Election filing requirements. (a) Time Deadline. Unless this Chapter provides other- wise, all documents required to be tiled under this Chapter, the California Elections Code or the California Political Reform Act must be received by the City aerk by the close of business on the date specified for filing. If the Oty aerk's office is closed on that date, all such documents shall be submitted no later than the close of business on the business day immediately following the date specified for filing. (b) Facsimile Signatures. All documents required to be signed and filed with the City aerk pursuant to this Chapter, the California Elections Code or the California Political Reform Act, shall contain original signatures. Facsimile signatures shall not be substituted for original signatures, except as provided in subsection ( c) of this section. ( c) Absent Voter Ballot Request. A voter may request an absent voter ballot by original or facsimile signature. (Added by Ord. No. 2007CCS ~ 8, adopted 4/24/01) 11.04.160 Format for petitions for recall, initiative, referendum or amendment of the City Charter. Any petition for recall, initiative, referendum or amendment of the Oty Charter must substantially comply with the applicable format contained in this Section or alternatively, with the applicable sections of the California Elections Code governing the same matters. In addition, the proponent(s) of any such petition must comply with all other applicable sections of the California Elections Code including, but not limited to, any requirements relating to the filing of a notice of intent to circulate petition, summary and title prepared by the Oty Attorney, any publication or posting obligations, any time limitation for securing signatures, and any filing requirements. (a) Sample Initiative Petition Format. The form for an initiative petition shall be substantially in the form set forth in Exhibit A, set out at the end of this Article. (b) Sample Charter Amendment Petition Format. The form for a petition to amend the City Charter shall be substantially in the form set forth in Exhibit B, set out at the end of this Article. (c) Sample Referendum Petition Format. The form for a referendum petition shall be substantially in the form set forth in Exhibit C, set out at the end of this Article. (d) Sample Recall Petition Format. The following form for a recall petition shall be substantially in the form set forth in Exhibit D, set out at the end of this Article. (Prior 604 FORM OF STATEMENT FOR ARGUMENT/REBUTT AL 2002 Elections Manual FORM OF STATEMENT TO BE FILED BY AUTHOR OF ARGUMENT All arguments concerning measures filed pursuant to Division 9, Chapter 3 (beginning with S 9200) of the Elections Code shall be accompanied by the following form statement to be signed by each proponent, and by each author, if different, of the argument: The undersigned proponent (s) or author(s) of the (primary/rebuttal) argument (in favor of/against) ballot proposition (name or number) at the (title of election) election for the Gurisdiction) to be held on 2 hereby state that the argument is true and correct to the best of (his/her/their) knowledge and belief. Sign Name Print Name Date All Authors must print his/her name and siQn this form AND Print his/her name and sign the An::!ument itself AND Print his/her name and sign the Rebuttal Argument itself Further, pursuant to Election Code 9 9219, printed arguments submitted to the voters shall be titled either "Argument In Favor Of Measure _" or "Argument Against Measure _". Likewise, printed rebuttal arguments submitted pursuant to Election Code 99 9220 and 9285 shall be titled either "Rebuttal To Argument In Favor Of Measure _" or "Rebuttal to Argument Against Measure _ ". Give this form to Council Members, Proponents, and Opponents of Measures S 9600, E.C. (Rev.1 0/01) Statement of Authors of Arguments Form 10 Martin & Chapman Co. . 1951 Wright Circle. Anaheim, CA 92806-6028.714/939-9866 Fax 714/939-9870 (11/7/2001) email: scott@martinchapman.com website: www.martinchapman.com R - 10 Adopted and approved this 26th day of June, 2002. I, Maria M. Stewart, City Clerk of the City of Santa Monica, do hereby certify that the foregoing Resolution No. 9778 (CCS) was duly adopted at a meeting of the Santa Monica City Council held on the 26th of June, 2002, by the following vote: Ayes: Council members: Holbrook, O'Connor, Bloom, Genser, Katz, Mayor Pro Tern McKeown, Mayor Feinstein Noes: Council members: None Abstain: Council members: None Absent: Council members: None ATTEST: ~ -~ \;:J .~ Maria Stewart, City Cle~