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M-7/17/1984 CITY OF SANTA MONICA CITY COUNCIL MINUTES JULY 17, 1984 A meeting of the Santa MonIca City Council and Rent Control Board was called to order by Mayor Edwards at 7:35 P.M. in the Council Chambers, having been adjourned from July 10, 1984. Roll Call: Present: Mayor Ken Edwards Mayor Pro Tempore Dolores M. Press Councllmember James P. Conn Councilmember DavId G. Epstein Councilmember William H. Jennings Councilmember Christine E. Reed (arrived 7:45 P.M.) Councilmember Dennis Zane (arrived 7:40 P.M.) City Manager John H. Alschuler. Jr. City Attorney Robert M. Myers City Clerk Ann M. Shore Roll Call of Rent Control Board: Present: Chairperson Leslie Lambert Vice Chairperson DavId Finkel Board Member Wayne Bauer Board Member EIleen Lipson (arrived 7:38 P.M.) Board Member Patricia Nagler Rent Control Administrator Howell Tumlin ActIng Senior Attorney Joel Levy Board Secretary Jean Hobson CC/RCB-l:. RENT CONT~OL . CHARTER AMENDMENT: Presented was Supplemental Staff Report No. 3 and addi tioni:!l informatlon from staff regarding proposed modIfications to a Rent Control Charter Amendment to be included on the ballot of November 6, 1984. Discussion was held. Councilmember E.psteIn moved, for diSCUSSIon purposes, approval of the revised draft Rent Control Law amendment prepared by the City Attorney to be amended during discussion and direction to the City Attorney to present ballot measure wording for Council approval on July 18, 1984. Second by Mayor Edwards. During discussIon. the following motions were made. Councilmember Reed moved an amendment to the language on page 2 of the staff report, probably to be included in SectIon 1815 if the City Attorney concurs, to read "single family homes are July 17, 1984 295 exempt from the removal and reglstration requirement of thls Article except that such units whlch are rented as of the date after the electlon, let's say November 7, 1984, shall be sUbJect to all provisions of this Charter Amendment. These rented single family homes, the ones as of November 7th, may be permanently or shall be permanently decontrolled either upon voluntary vacancy of current tenant or contlnuous occupancy by Owner for one year," that concept to be included in legal language. Councilmember Epstein, as the maker of the original motion and wlth the consent of the second, accepted the amendment as friendly and incorporated it into the main motion. Counc1lmember Zane moved an amendment to proposed Section 1815 that language read "Slngle famlly dwellings in R-1 areas that are currently owner-occupied as of this date--today--are exempt from all the provisions of this article. Any single family dwell1ng 1n any area of the City, Wh1Ch is currently rented as of today, stays subject to the rent control law." After discuss1on, Councilmember Zane withdrew the motion stating his intent to make the motion again at a later appropriate t1me. r Councilmember Epsteln moved an amendment to delete, on page 2 of the draft text, Sectlon 1801 (c) (4) (ili), "Nothw1thstand1ng any other provisions of this Art1cle, an exemption under th1S section shall not excuse the owner from the requirement of obtaining a permi t to remove any unl ts from the rental hous1ng market In accordance with th1S Article," Wh1Ch basically subjects two and three unit buildlngs to the removal permit process. Second by Councilmember Reed. The motion was approved by the following vote: Council Vote: Aff1rmative: Councilmembers Conn, Epstein, Reed and Mayor Edwards Negatlve: Councilmembers Press and Zane Absent: Counc1lmember Jennlngs Councilmember Epsteln moved an amendment to Section that the Rent Control Board budget submittal schedule be the same as the Cl ty' s. Second by Reed. Mayor Edwards, the second, accepted the friendly and it was therefore 1ncorporated into the 1802, Budget, and adoption Counc ilmember amendment as main motion. C_ouncllmember. Epsteln.moved to add 15 days to the time schedule for review of the draft budget and that a copy be transmitted to the City Manager. The motion falled for lack of a second. CouncilmemberEpsteinmoved, on page 5, Subsection (d), to delete "legislative lobbY1St" from the employment contracts. The motion was duly seconded and failed by the following vote: Council Vote: Aff1rmative: Councilmember Epstein 2 July 17, 1984 Negative: Councilmembers Conn, Press, Reed, Zane and Mayor Edwards Absent: Councilmember JennIngs C~unc~lm~mber Reed moved to delete the last two lines on page 5, S0bs~ction (e), ConformIng Regulations, which read "and ~ncons~stent ordInances of the City Counc~l to the extent necessary to resolve any inconsistency. II The motion failed for lack of a second. Counctlm~mber Zane moved to direct the City Attorney to draft for review new language in Subsection (e) to achieve the obJectives of the autonomy of the Board wlth respect to these regulations, that the Board supersedes the Councll with respect to matters pertainIng to rent control only. There belng no objection from the second, Councllmember Epstein accepted the amendment as frlendly to the motion. Councilmember Zane moved an amendment suggested by the CIty Attorney in regard to Subsection (e) to put a perlod after "Artlclell, strike lIand inconsistent ordinances of the City Council to the extent necesary to resolve any inconSIstency," and add to the fourth line so that It read "the Board and not the CIty Council should have the authority to adopt replacement regulations.1I The mover and the second accepted the amendment as frlendly and It was incorporated Into the main motion. Councilmember Reed moved an amendment in regard to Section 1802(b), Personnel, In discussion with the CIty Attorr::ey to add language that 1I0nly those prOVISIons of the MuniCIpal Code that shall be applicable to employees of the Rent Control Board are those prOVISIons that the Rent Control Board makes applicable to its employeesll and to delete the last sentence which reads IIAny regulation, POlICy, or memorandum of understanding of the Board consistent with this subsection shall prevail over inconsistent provisions of the Municlpal Code and other ordinances or resolutlons of the Clty Council.1I Second by Councilmember Epsteln. There belng no obJectIon from the second, Gouncilmember Epstein Incorporated the amendment Into the main motIon. Member of the PUbIC James Baker spoke in objection to the security deposlts procedure. Councilmember EpsteIn moved an amendment on page 9, SubsectIon (s), Security Deposlts, to glve the Board dlscretion to deal Wl th thIS issue by regulation, and not to put it into the Charter. Second by Councilmember Reed. Mayor Edwards, as the seconder, accepted that as a friendly amendment to be incorporated Into the maIn motion. Councilmember Epstein moved an amendment to the bottom of page 10, Subsection (3) regardlng the Housing Element, to reflect hIS concern that the legislative lntent is not in any way to modify or invalIdate the prOVlsions of Propositlon X (Tenant OwnershIp Rights), that the way this is written may require a removal 3 July 17, 1984 297 permit for Proposition X conversions. During discussIon with the City Attorney, the amendment was rephrased to add a sentence that thIS does not apply to any tentative map or parcel map processed In accordance with ArtIcle XX of the Charter; further, to delete the words >>nor issue a ReSIdential Building Report>>. Second by Councllmember Reed. WIth the consent of the maker and the second, the amendment was incorporated into the main motion. During discuSSIon and wIth the consent of the second, Councllmember Epstein moved an amendment to direct the City Attorney to return on July 24th WIth draft language alternatives in regard to page 13, SubsectIon (14), decisions decreaSIng rents related to correctIon of defects, to provIde for retroactive reInstatement of rent to the landlord. The maker and second agreed to incorporate Into the maIn motIon the request of Councilmember Zane for clarification of Section (2) on page 14, prohibiting a rent increase if a unit has habitability problems, as recommended by the CIty Attorney to add that the unIt for which the rent increase is beIng sought and the common area IS not subject to violatIon. Councllmember EpsteIn moved an amendment on page 15, Subsection (2), to have that language remaIn the same as it is In the eXIsting Charter Amendment ("Has failed to comply substantially wi th any applicable state or local hOUSIng, health or safety law," as one of the reasons no rent increase is permItted), addItional wording to be deleted. Second by Councilmember Reed for purposes of diSCUSSIon. The motion failed by the follOWIng vote: Council Vote: AffIrmative: Councilmembers EpsteIn, Edwards Reed and Negative: Councllmembers Conn, Press and lane Absent: Councllmember Jennings Councilmember Reed moved an amendment to delete SectIon (3) on page 15 of the draft amendment which IS all the part having to do with no rent increases if any units are kept vacant. Second by Mayor Edwards for purposes of diSCUSSIon. Councilmember Epstein moved a substitute amendment to direct the CIty Attorney to draft language which would increase the vacancy holding period from three months to six months, In effect saying that holding two unl ts off the market or less than 15% of the units on the property off the market does not count and is WIthin the bounds; but if more than two units or more than 15% are withheld for more than six months, the good cause procedure may be brought before the Rent Board. The motIon failed for lack of a second. Mayor Edwards moved to contInue the meetIng past 11:00 P.M. Second ~~ Councilmember EpsteIn. The motIon to contInue the meetIng was approved by unanimous vote. The substItute motIon was approved by the following vote: 4 July 17, 1984 Counc1l Vote Affirmatlve: Counc1lmembers Conn, Press, Reed, Zane and Mayor Edwards Negat1ve: Councilmember Epstein Absent: Councilmember Jenn1ngs Councilmember Epstein requested the record to reflect that he does not support thIS section in its present form; he believes the problem 1S a ser10US one and the issue of alternative methods ought to be explored further before this is approved. Councilmember Zane moved deletion of Section 1805(g) on page 15 which reads "the Board shall provide an expedited procedure for consideration of rent 1ncreases for capl tal improvements where both the landlord and the current tenant(s) of the affected units concur in the nature of the capi tal improvements to be made or already made. All other rent 1ncreases for capital improvements shall proceed accordlng to regular admlnistrative procedures." Second by Mayor Pro Tempore Press. The motion was approved by the following vote: Council Vote: Affirmative: Gouncilmembers Conn, Epstein, Press, Zane and Mayor Edwards Negative: Gounc1lmember Reed Absent: Councilmember Jennings Councilmember Reed moved an amendment to retain the original language of the Rent Control law in Section 1806, Subsection (h), to permit exceptions for the larger list of relatives. Second by Councilmember Epstein. Councilmember Zane moved to table this motion, move on to the other sect1ons, and return to this one, rather than raising another separate motlon at a later time. Councllmember Epstein seconded the motion to table until discussion is held in regard to the remaining parts of Section (h). The motlon was approved by voice vote of four to two, Councilmember Jennlngs absent. Councilmember Epstein moved an amendment to direct the City Attorney to prepare language bas1cally gi vwg the Board author1 ty to explore and promulgate regulations allowing for owner occupancy eV1ctions 1n cases of hardship and/or providing tenant protection in cases of hardship. Second by Councilmember Zane for purposes of d1Scussion. The motion was approved by the following vote: Council Vote: Unanimously approved 6-0 Absent: Councilmember Jennings Mayor Edwards moved an amendment 1n regard to Section (4), page 16, so that it read "the landlord or enumerated relat1ve must lntend in good faIth to move into the unit w1thln 30 days after the tenant vacates and to occupy the unit as a prlmary residence 5 July 17, 1984 299 for at least Councl.lmember vote: one year (rather than six months). Zane. The motl.on was approved by the Second by following Cuonci Vote: Affl.rmative: Councilmembers Conn, Press, Zane and Mayor Edwards Negative: Councllmembers Epstein and Reed Absent: Councl.lmember Jennings Councilmember Reed requested the record to reflect that she l.S not willing to vote for this motion until a determination has been made on the matter of all relatives. Councilmember Zane moved an amendment to Section (5) (iii), page i 7, to include at f::clr-ney I s fees along with the expenses incurred l.n moving. Durl.ng discussion Wl.th the City Attorney, Councilmember Zane modl.fied the motion to add to the last sentence on page 17, before Section 7, "Any violation of thl.s Section shall render the landlord liable to the tenant in an action for actual and punitive damages including costs and reasonable attorney's fees." Second by Councilmember Epstein. The motion was approved by the following vote: Council Vote: Unanimously approved 6-0 Absent: Councilmember Jennings Councilmember Epstein moved to take from the table Councilmember Reed's amendment regarding the list of relatives for which a landlord may recover possessl.on. Second by Councilmember Conn. The motion was approved by the following vote: Council Vote: Unanl.mously approved 6-0 Absent: Councilmember Jennl.ngs Councilmember Reed repeated her amending motion to delete the strl.ke-outs on page 16, Section (h), so that the language remains, the way it was origl.nally included in the Rent Law (liThe landlord seeks to recover possession in good faith for use and occupancy of herself or himself, or her or his children, parents, brother, sister, father-in-law, mother-l.n-law, son-l.n-law, or daughter-in-law. "). The motl.on was approved by the followl.ng vote: Counel.l vote: Unanimously approved 6-0 Absent: Councilmember Jennings Councilmember Epstel.n moved an amendment on page 18, Section 7, Subsectl.on (b) (1) regarding medl.ation, to make it discretl.onarYi that l.3, the Board may by regulation provide up to a sixty day 6 July 17, 1984 ) stay for the offerIng of mediation services. Second by Councilmember Reed. Councilmember Conn moved a substItute motIon to delete the Subsection. Second by ~ayor Edwards. During dIScussion, Councilmember Conn wIthdrew the substItute motIon. Councilmember Epsteln, with the consent of the second, amended the motion to revise Subsection (b)(1) as suggested by the City Attorney to accord the tenant a 120-day tlme period in which to be heard in the same way as the landlord. Second by Councilmember Conn. Councilmember lane moved a Substltute amendment to delete in Subsection - (b)(1) th~ reference to medlatlon and provlde for a 120-day time limit from the date of flling of elther a complalnt or a rent decrease petitlon durlng which the Board shall act upon the matter. Second by Mayor Edwards. During discussion with the Clty Attorney, and with the consent of the second, the motion was amended to delete the phrase having to do with a petlt10n for rent decrease. The motlon was approved by the following vote: Council Vote: Unanimously approved 6-0 Absent: Councilmember Jennings Councllmember Reed moved an amendment to page 18, Section 7(a), lastU llne, to delete the words "willfully or" preceding "with oppression, fraud or malice," 1n regard to a landlord demanding, etc., rent in excess of the lawful rent. Second by Councilmember Epstein. The motion fa1led by the follow1ng vote: Council Vote: Affirmative: Councllmembers Epstein and Reed Negat1ve: Councilmembers Conn, Press, lane and Mayor Edwards Absent: Councilmember JennIngs Councilmember Zan~ moved an amendment to direct the City Attorney to diaff-la~iuai~ t6jt would permit the Board or the tenant to file a civil action subsequent to any resolution of an admInistrative action. During discussion, the motlon faIled for lack of a second. Ccuncilmember Reed moved an amendment to delete additional language wSect1.on 1810 on page 19 of the proposed draft and retain the orlglnal wording in Sectlon 1810 of the Rent Control law provldlng that "any landlord violatIng th1S law shall be guil ty of a mlsdemeanor, etc." Second by Councilmember Conn. The motion was approved by the following vote: Council Vote: Unanimously approved 6-0 Absent: Councilmember Jennings There being no object1on, the City Attorney was directed to return to the meeting next week Wl th alternatives provid1ng for 7 July 17, 1984 30J the single-family home exemption, page 20 of the draft under discuss~on. Dur~ng d~scussion 1n regard to Proposition X (Tenant Ownership Rights), Councilmember lane moved an amendment to direct the City Attorney to draft language clarifying the questlon of whether people lost their protect~on from owner-occupancy evictlons after the so-called five year lease so the intent of the drafters of the measure is made clear that protection against being evicted for owner-occupancy or relatlve-occupancy in such a converted unit was to continue in perpetuity so long as you are a tenant. Second by Councilmember Epstein. There being no obJection from the second, Councilmember Epstein incorporated that amendment into the main motlon. There also being no obJection, Councilmember Epsteln added to the main motlon, in regard to Proposlton X and page 17, ltem (6) of the draft regardlng eviction protections, direction to the City Attorney to draft clarify~ng language that this sectlon would not apply to any conversion approved under Proposition X. Councilmember Reed moved an amendment to direct the Clty Attorney to draft languag~ WhlCh would enable the Rent Control Board, by regulat~on, to enact some sort of voluntary program whereby landlord's receive rent lncreases upon voluntary vacancy ~n amounts determined by the Board provided the landlord sets aside a specifled number of low/moderate ~ncome unlts, such as proposed in a communication from Attorney Christopher Harding. Second by Mayor Edwards. There being no obJection, Councilmember Epstein incorporated the amendment ~nto the main motion. The main motion to approve modifications to the proposed Charter Amendment to the Rent Control Law to be consldered agaln on July 24, 1984, was approved by the followlng vote: Counc~l Vote: Unanlmously approved 6-0 Absent: Councl1member Jennings ADJOURNMENT: At 1:27 P.M., the meeting of the Rent Control Board was adjourned by motlon, second and unanimous approval. At 1:27 A.M., Councilmember Epstein moved to adjourn the meeting of the City Council, adjournment to be in memory of Rabbi Edgar 8 July 17, 1984 F. Magnin. Dorothy Jackson Pasick and Paul Potter. Second by Mayor Edwards. The mot~on was approved by the following vote: Counc~l Vote: Uanimously approved 6-0 Absent: Councllmember Jennings ~>>~ zr:' 4--- ~ ATTEST: Ann M. Shore City Cl erk Ken Edwards Mayor 9 July 17. 1984