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SR-5-A (20) , . e e 10'/ '-()66 014 I :_, , ... .. AUG 2 8 1979 DATE August 28, 1979 TO Mayor and Councilmembers FRON City Attorney SUBJECT: Law Suit Regardlng Rent Control Amendment Initiative INTRODUCTION This report transmits informa~ion on hearings held in the Superior Court on August 24th and 28th, 1979. It also transmits a resolution calling for a Special Election to be held on November 6, 1979, upon certain contingencies. BACKGROUND On August 24th, Lowell Wedemyer, a tax payer and signatory of the petition, filed suit against the City, the Council, four Council- , members who were not present at the August 23rd meeting, the County, and the Registrar of Voters. After a hearing, Judge Robert We il ordered the County to accept a Santa Nonica consolidation request up to September 5th, the County's printing deadline and the day after a scheduled hearing. He denied a request to compel the Council to meet and to vote on the consolidation request; he stated that the City had a duty to put the InitIative on the ballot and that he expected that the Councll ~ould perform that duty with- in its discretion. On August 28th, Councilmembers Yannatta and Jennings, and Santa ~onlcans for Renters Rights, filed a cross-complaint and sought a Temporary Restraining Order. Another hearing was held before ~A AUG 2 8 '979 ,~ e e $- . Weil; the Judge issued a Temporary Restraining Order enjoining the City from transmitting a consolidatlon request to the County. The County 1S enJoined from accepting a consolidation request from the City. The TRO will last until a hearing before Judge Weil on Tuesday September 4th. At that time, the Judge will decide whether he will permit a consolidated election to occur on November 6th, even though the City did not file a consolidation request within the tine limit of Section 23302 of the Elections Code. The Council was authorized to pass a resolution calling an election. It may call a Special Election for any reasonable date, including ~ovember 6th. It may request that an election called for November 6th be consolidated with the Statewide Election, and risk that the Court will enJoin the consolidation. Further, the Council may dlrect the Clerk to hold a separate election and request the County to cooperate as much as possible, if consolidation is prohibited. The County Counsel indicated that the County was willing to cooperate wlth the City, and that it had no objection to consoli- dation provided that its printing deadlines were ~et. Should the Council adopt a resolutlon, the City Attorney will transmlt it to the Court by noon, August 31st, together with his response to the requests for inJunctions. The papers will be served on the opposing parties and on the County Counsel. - 2 - ...... e It Since the City Attorney represents Councilmembers Yannatta and Jennings in response to the Wedemyer co~plaint~ and ~ince those Councilme~bers are suing the remaining Councilmembers in the cross complaint, the City Attorney 1S representing conflicting interests. UntIl further direction, the City Attorney will present the facts and governing law as obJectively as possible, and advocate the goals of a majority of the Council. ALTERNATIVES The Council may vote to set a special election on the Rent Control AmendQent InitIative at a date of its choice. If the Council votes to set an election for November 6th, it may request that the election be consolidated with the Statewide election, if possible. If 1 consolIdatIon is impossible, the City may hold its own election and enlist maximum cooperation of the County. RECO~t:.IENDA T I ON The City Attorney recommends that the Council set the election at a date of its choice. If the Council chooses to set the election for November 6th, the Attorney recommends that the Council adopt a resolu- tion requesting consolidation and, alternatively, cooperation. The Attorney also recommends that he be directed to respond in Court on behalf of a maJorIty of the Council, and transmit a copy of whatever resolution is adopted to the Court. Prepared by: Richard L. KnIckerbocker, City Attorney Stephen S. Stark, Assistant City Attorney - -,--,' ~ y f e e - >~- '" RFSOlLJTTO:\ .\i0. S3"!7 (ees) (CIty CouncIl Serles) ~ RESOlUTIO~ or THE CITY COU\CIL OF THE CITY OF S"..\\"L\ MONICA R[QUI~STT:\G THE BOARD OF SUPERVISORS OF IHE COUNlY OF LOS ANGFLfS TO COKSOLIDATE THr CITY or SA:.ITA :'.IONIC\'S SPLCIAL ELEcrrON TO BE HFLD ON NOVI~BLR 6, 1979 WITH THE STATE- WIDE SPFCI~L lLECTIO\ fO BE HELD ON XOVI"IBFR 6, 1979 OR 1',J THE ALT[R?'\"ATIYI: COOPERATE 1\'ITII THE CITY. l'nIEREAS) the CIty CouncIl has adopted a resolutIon callIng for an electIon to be held on November 6, 1979, In the City of Santa ~onica, [or the purpose of submIttIng to the qualIfIed clector~ of saId City a proposItion hereInafter set forth and ha5 ordered saId electIon to be con~olIdated wIth the 5tate~IJe speCIal election to be held on Xovcnber 6, 1979, NOX, THEREFORL, the CIty CounCIl of the CIty of Santa ~onica does hereby resolve and deterninc as follows: SECTIO\ 1. That the Board of SupervI~or~ of the County of Los Angeles be, and lS hereby requested to consent to and order the consolidation of 5a1<} electH1n to be held in the City of Santa ~onlca on November 6, 1979 and called by resolutIon adopted by the CIty Council \...'lth the statc1,-ide speCIal electIon to l;{c held on November 6, 1979. The exact form of the questIon or propositIon to be voted upon at saId electIon as it shall appear upon the ballot I~ as follo~s: -1- , , e e fROPOSITIO\. Shdll Art1cle XVIII ot the ;:';~nta nonlca CJty- C}.;:nter, provHlJng for a :o;'stcm of rent control, be d~c~~ed~ SECTIO\ -. Said Board of SuperVIsors is hereby authorized to canvass the returns of saId CIty electIon whIch IS hereby . requested to be consolIdated wIth said statewIde special electIon and saId electIons shall be held In all respects as Jf there were only one election and only ~ne form of ballot shall be used. SECTIO\ 3. SaId Board or SuperVIsors is hereby requested to l~~UC InstructIons to the Registrar of Voters to take any and all steps necessary to the holdIng of saId consolidated electIon. If consolIdatIon IS prohIbited by a Court of competent JurisdictIon, the City Clerk IS authoYIzed and directed to enlist the cooperatIon of the County Registrar Recorder and such other County offices as ITay ') l' de o'ne d neces~ary to~ard the end of reduclng the expense and ad~InIstratlvc burden of the electIon. SICTION 4. The City Clerk of the CIty of Santa Monica IS hereby dIrected to fIle certified copIes of thIS resolution with the Board of SuperVIsors of the County of Los Angeles~ with the RegIstrar of Voters of said County, and WIth the County Clerk of s~Id County. SICTIOK 5. The City Clerk ~hall certIfy to the adoptIon of thIS rc~olutlon, and thenceforth and thereafter the same shall be If full force and effect. ArrROVID AS TO lORM' ,/" \ <. ' . . I ,\ l ~ '. 1\ I^; \ '\ \ Ii' .\ \<, t. >i ~ r - f ; ( - rt~~\ . _ j ,~""'e/V:~\~-{,'-'- -~ , ClVTY ATTOI@Y V' . '. --2.... e e ADOPTED AND APPROVED THIS 28th DAY OF )\ugust ) 1979. " /j - ,'. (0., j:e-- ~ " "" ( / ' r.>~ ." "/., / / t/ Li-L- - >', / ':;?tl-/d3ft --()(./4:i /Zt"7&L~ f'1AYOR , I HEREBY CERTIFY THAT THE FOREGOING RESOLUTION) No. 5~77) WAS DULY ADOPTED BY THE (ITY COUNCIL OF THE CITY OF SANTA r10N I CA AT A REGULAR i'-JEET I NG THEREOF HELD ON AllC:llst 23 ) 1979 BY THE FOllOWING COUNCIL VOTE: /I.YES: COUNCILMEMBERS' BambrIck, Scott, SWlnk, van den Steenhoven ~WES: COUNCILMEMBERS: JennIngs, Yannatta Goldway /~BSErn : COUNCILMEMBERS: Reed ABST A If~ : COUNCILMEMBERS: ~one ATTEST: :/) I I ~)-- r //1-' .L/d.A_.'_ ___ -)_---L,J-~i \........ /'.' ", --WI TY E'LERK . / e e j. RL SOL U 1 I 0:\ NO. ;) 3 7:; ( C C S ) (City CouncIl SerIes) :'\ R::SOLlTTION OI TIfE CITY COUNCIL OF TIn C 11 Y or SAYI). '10:\1 CA FOR THE FURFOSI or SUB-'in TI\G TO THE QU.\LII lED [LECTORS 01' Tiff CrTY OF SA~TA ~o~rCA A PROPOSITIO\ CO\SISTI\G OF ,\ VROPOSLD (ff).R rr::R ..\ \lE?\mIE;'~T RJ LATL\lG TO T:iL -\'.TEjJD:IENr Of IHF~ R} NT (O)\" I ROT S"\-STDl Il\ THE C I II' or 5."1.:\1:\ ~rO:\ICA, -'\Nn FR0\'IDI\G FOR THE sumn S S I ON OF THI S :~' f~ AT THE SPICL\L )tU~nClr;\L FLECT10\ TO B[ HILD o:'~ TIff SIXTH DA..Y or ~\()V[\IBFR J 0;' 9. THE CITY COU\C1L or lI1[ CITY OF SX'.J"TA ~10:--nCA DOES RISOU'L AS For LOWS: KHFRFAS, a petltlon for submissIon to voters of proposed ancndment to the charter of the Clty of Santa ;ronlea h<15 been CIrculated '''-Itlnn the CIty; and, hHIRL\S, salJ petl tlOll has been SIgned by the reqUISIte number of elIgIble persons to qualIfy for the ballot, i\Ql',', TI-lLRL [.ORr, the CI tv CouncIlor the CJ tv of S2nta nonlca docs resolve as follohs: SECIIO~ 1. That a speCIal municipal elcctlon shall be held on the slxth J.a~' of ?o\'embcr, 197~). SteTIO"! 2. "!hat at saId speciCll wllDICIpal electIon, the folloT,nng propo'sltlon lS to be .subm1tted to the quallfled electors or the Clty of Santa ',Ionjca: e e Shall Art]c~e XVIII of the Santa fIonlca CIty Charter t IHovldlng fay a ~vstem of rent control In the CIty of Santa ~onlCat be amended7 SLCTIOK 3. The Clty Attorney 15 dIrected to prepare an impaltlal analv~JS for ~aid proposItIon pursuant to SectIon 5011 of the ElcctlClli Code of the State of CalIfornia. ~ SEelIO\ 4. The City Clerk shall certIfy to the . . adoptIon of thlG resolutIont and thenceforth and thereafter t~c sane shall be In full force and effect. -'l.FFRO\ ED0..S 1 () ro.R"1: , I - i ~ , ,~~i ~ /, 1 / ~~ / ' i ... f c.' 1/ / . . ~ ! i'" :. L f f __.5 .1 / 'iL, . .; ,.,}.' V ,f;;i)~l c- . i{'\L6~A "c "---- 'gn _HTOk:JLY e e ADOPTED AND APPROVED THIS OF ~----:,~L~~.L~:_!_ ________~ 1979. 28th DAY ,/ .../; / F ( (- ~~_L~~F;'?{ l__//(( l i /' /' ;/ /' .[ /'1'1..... /I.'i.(c__ f"lA VOR I HEREBY CERTIFY THAT THE FOREGOING RESOLUTION) No. 5375 ~ WAS DULY ADOPTED BY THE CITY COUNCIL OF THE CITY OF SANTA MONICA AT A REGULAR MEETING THEREOF HELD ON _~gu'-,t 28 ) 1979 BY THE FOLLOWING COUNCIL VOTE: AYES: COUNC I U'1Et'1BERS : Bambr ick, Scot t, S,.: 1 nk, van den StC'E'nhoven NOES: (OUNe I U.1IE~'1BE RS : J cnnlng 5', Y anna t ta l~o 1 d\..a y ABSErJT: (OUNe I Uv1EtlBERS : Reed ABSTAI~~: (OUNe I U1EI'1BERS : )lone , ATTJ: C:TI . I L.-......., . ') l.d ,f-)J~ l~ r . ~.. ...------r--- -,-' ; _--)-) ~ t-"-l t ~.~ / C I TX CLERK / '-"/ - e .. ,.,. , - 5176 (ces'] RFSOLUTIO:\' :\'0. (City CouncIl SerIes) -\ RISOLUTIO-"': OF TIlE CTTY (OU:\'CTL Of THI: CITY or S:\YIA 'fOKIri\. lZIQUISTTI\G ]1I1 BO..-:\RD 01 SUPERVISOr.<; Qf THL COU?\TY Of LOS ~\NG~J LS TO CO~~SOLLJ\TL 'THE CITY Of S)JHA :.iO\lCA'S sprc I At [LLCT I 0:\ TO BE I-ILLD O\f 1\OVHlBLR 6, 1979 WITlI Taf STJ..rE\dDF srICIAL [LECTIO~ TO BE BELD'O:\, XOYF:\!BIR 6, 1979. \';llfn.L\S, the CIty Coune 11 11a5 adopted a rcso 1 u tlon calIl~~ an electIon to be held on Kovenber 6. 1979, In the Cl ty of Santa 'Ionlca, for the purpose of subrn ttIng to the qualIfIed electors of sald CIty a propositIon hereInafter set forth and has ordered saId election to be consolIdated ~lth the statewIde speCIal election to ~c held on ~ovenber 6, -o"'n 1 _ . ~ \OW, THfRLFORf, the CJty Council of the CIty of Santa 'IOIlled Goes hereby resoh'C' and dcteroinc as follows: SFC110G 1. That the Boaru of Superv130rs of the County of Los ),ngelcs be) and IS hereby requc~ted to con~ent to and order the consolIdatIon of saId election to be held In the CItv of Santa ~onIca on \ovcmber b, 1979 and called by resolutIon <ldopted bv the CIty Conncll '''It"f1 the stateh'ldc speCIal electIon to he he]J on ~ovcwher 6, 1979. rhc exact forr of the qucstJon or prepOSItIon to be voted upon at ~ald election as It shall appedY upon the ballot 15 as follows: - J - e e J - rRQPOSITIOX. Shall ~rtIcle XVIII of the Santa ~[onlca CIty Charter, FlovIdIng [or a sy~tcm of rent control In the CIty of Santd " ~onIca, be ancnded0 S[CTIO~ Z. SaId Board of Supervisors IS hereby authorized to canva~~ the.returns of said City electIon , 1.;]uch IS hereo,- requested to be consolidated '.oth saId statc~Ide spec~al electIon and said elections shall be hcltl In all re"pects J.S 1 t there were only one electIon and only one form of ballot shall be used. SECTION 3. Sdld Board of SuperVIsors IS hereby rc~vested to IS~UC Instructions to the Registrar of Voters to talc any and all steps necessary to the holdIng of saJd consolIdated elect~on. SLCTIO\ +. The CIty Clerk of the CIty of Santa 'jonICd. IS hereby directed to file certified caples of tIllS resolutIon WIth t~e Board of SuperVIsors of the Countv of l.OS .\ngell:'~, ,nth the ReglstTar of VotCYS of sald County, an~ KLth the County Clerk of saId County. SFCIIO\ 5. The Citv Clerk shall certify to the aJoptlon of ttlS resolutlon, and thenceforth and thereafter the same shall be In full force and effect. ,,-=+I.:YRO\rED .\5 TO rOm!' ,/', ~ ~.. ~ I f 'J iJ ~, !v I~~ -I- \ [!MY" -y .\ ITbR~n\ "\ . "1i i I ;' II ./ ," ~ ii, '\'1! -' If >,,/ r~ 'V.\-"t/\' F/'''''/-CY Y ~ ......... e e ~ ~ ~ # ~ ADOPTED AND APPROVED THIS 23th DAY OF _.'\ugus t ~~) 1979. -> ;! ~~. /. t{ ,f:i" ;~ ' /~./,j ,,- ~ ,'" ~... ~ / ( . / ,it.; ,.' ,/;i; /., J7.{/{(-I/,. L --~ '-~.... v.{. t -..... '-" ,_ t......._ f'lAYOR ~ I HEREBY CERTIFY THAT THE FOREGOING RESOLU~ ION) NO.~)i6 ) WAS DULY ADOPTED BY THE CITY COUNCIL OF THE CITY OF SANTA MONICA AT A REGULAR MEETING THEREOF HELD ON Aue-ust 28 . 0 } 1979 B~ THE FOLLOWING COUNCIL VOTE~ A"rS \.. t- I I~ . (OUNC I Liv1Er'1BERS : Banbr lek, Scot t, Slnnk, van den Stecnhovcn NOES: COuriC I U"iE~1BERS : Jcnnlngs, Yanna t ta Go ldl-:ay ,~BSErn : (OUNe l U1ErmERS: Reed ABST A I:~: (OUNC1 LnEt.1BERS: J\one ATTEST: ., f , -'S/.,( , ..--' -{. ......."L{\~ -t ~~ /2,--:-~.i .--1-'" C (1<( CL'E R K / . . Santa Monica, California, August 23, 1979 To: Mayor and CIty Council From: CIty Clerk Subject: Rent Control Petition I AUG 2' 3 1979 IntroductIon ThIS report outlines actIons taken to date and reconmendations regarding a rent control petition. Background A charter amendment petition containIng approximately 9,739 SIgnatures and proposing an amendment to Article XVIII of the Charter of the City of Santa Monica concerning rent control was sub~Itted to thIS office on August 7, 1979. The language of the proposed charter amendment IS attached. Pursuant to State Code requirements the petition was submltted to the County RegIstrar's office for verIficatIon of signatures. 5,205 SIgnatures are required to qualIfy the petitIon for placement on a ballot. The RegIstrar's office completed the signature examinatIon on August 15, 1979 and found it to contain suffICIent signatures for placement on the ballot. A copy of the Registrar Recorder's report is attached. Summary Since the petitIon qualifies for ballot placement, It recoillQended that the CouncIl take the following actIons: 1. Adopt the attached resolution calling a specIal munICIpal election to be held on ~ovember 6, 1979. -1- I AUG 2 3 1979 ~-- . . 2. Adopted the attached resolution requesting the Los Angeles County Board of Supervisors to consolidate the special municIpal electIon with the statewide special electIons which is to be held on November 6~ 1979. CompletIon of arguments and rebuttals: The Councilor member or members authorized by the CouncIl has first priority to wrIte the argument for or against the proposed charter amendment. If the Council so desires, it wIll be necessary to take action on August 23rd. The deadline for submittal of argunents lS September 4, 1979. The deadline for submittal of rebuttals lS September 14, 1979. ~2- -- . . PETITION FOR SUBI\IIISSION TO VOTERS OF PROPOSED AMENDMENT TO THE CHARTER OF THE CITY OF SANTA MONICA ~ To the City CouncIl of the City of Sanla Monica We, the underSigned. registered and qualified voters of the Slate of California. residents of the City of Santa MOllica, pursuant to Section 3 01 Article XI of the Conslltutlon of the State and Chapter 3 of DIvision 2 of Title 4, commencing at Section 34450 of the Government Code, present to the Cuy Council of the City this petitIon and request that the followlIlg proposed amendment to the charter of the City be submlUed to the registered and qualified voters of the City for thelf adoption or relectlon at an election on a date to be determll,ed by th~ City Council The proposed charter amendment reads as follows AMENDMENT TO ARTICLE XVIII CONCERNING RENT CONTROL Article XVIII of the Charter of the City of Santa MOllica IS hereby amended to add Section 1B01 (c) (6) as follows (6) Rental units conslstmg of free standing Single family dwellings ,md resldentUl.1 units deSigned for one family occupancy of the type described m SubdiVIsions (a), (b) and (c) of Seclton 7153 1 of the California rmanclal Code Section 1801(1) of Article XVIII of the Charter of the City of Santa Monica IS hereby amended In ItS enllrety to provide as follows (I) Base Rent CelHngs The maximum allowable rent establIshed 111 Section 1804(b) or, If higher. the rent charged pursuant to Section 1805A upon the re-rental of a vacant rental unit Article XVIII of the Charter of the City of Santa MOllica IS hereby amended to add Section 1B01rm) as follows (m) Consumer Price Index The Consumer Pm;e Index lor All Urban Consumers (U S City Averagel published by the Bureau of labor StatistiCS. US Department of Labor (Base Year 1967=100) Article XVIII of the Charter of the City of Santa Monica IS hereby amended to add Section 1B05A as follows Section 1B05A Vacancy Decontrol/Recontrol If any controlled rental unit IS vacated by a tenant voluntanly or as a result of an eviction or termination of tenancy based upon one or more of the grounds set forth m Section '806. the rent limitations of thiS Article shall not apply to the re rental of saId unit, pro vlded, howevef, that thereafter, so long as said rental unll continues to be rented to the same tenant. no other rer>! adjustment shall be made except as per- milled by Section 1805 or SectIOn 1B05B So long as the landlord does not 5ubsequently decrease the housing services proVIded to said unit, no base rent established pursuant to thIS Section 1805A may be reduced by reason 01 any petition filed pursuant to 5ectI0"11805(c) Article XVIII o~ the Charter of the City of Santa MonIca IS hereby amended to add Sechon 18058 as follows Section 18058 Cost 01 Living Adjustments Notvllthstandlng any ot"er prevIsion of thiS Article to the contrary and III lieu of any permitted IIldlvldual or general adjustment of the cellmg or> allowable rents under Section 1805, any landlord may Increase the base rent cellmg on any controlled rental umt for which there has not been a rerlllncrease wlthlllthe preceding twelve (121 months to an amount equal to the base rent celll'1g which was In effecltwelve (12) months preVIously or, If no base rent was then In eXistence. the first base rent established thereafter. mcreased by tl'e percentage mcrease In the Con. surrer PIICt! Index dUring the Immediately precedmg calendar year So long as the landlord does not subsequently decrease the housmg services prOVided to saJd ulllt, no base rent established pursuant to thiS Section 18058 may be reduceo by reason of any petItion filed pursuant to Sectton 1805(c) filS the pur pose of thIS Section 18058 10 reduce the administrative burden Imposed 0'1 the Board by permitting landlords to adjust rents in accordance with mcreases in the cost of IIvmg without need to petition the Board ,. . . b. ."",n f\'~ ~l..1 'lE OFI=K E .)r. III COUNTY OF LOS ANGELEStil1CLr.Rt<. DEPARTMENT OF REGISTRAR-RECO~fV \\) 4~ ~~ '19 808 NORTH SPRING, LOS ANGELES, CALIFORNIA, 9001~Y~74-6701 . - CAdf. SAM I;' t-\vrtl\,A, P. O. Box 30450 .-' oj; LEONARD PANISH REGISTRAfI-RECOflDER August 15, 1979 Mrs. Joyce SnIder Santa MonIca City Clerk 1685 Main Str eet Santa MonIca, Califorma 90401 Dear Mrs. SnIder: Attached are 1,162 petihon sectlOns pertaming to a Rent Control Ordinance which was submItted for signature verIficahon on August 7, 1979 The results of the sIgnature verificatlOn are as follows: Number of sIgnatures verifIed 7,075 a. Number of sIgnatures qualified 5,812 b. Number of signatures not quahfIed 1,263 Please call Alice Rivers of the Elechon CoordmatIon Division at (2l3) 722-1665 if you need any addItional mformation. Very truly yours, 71A--~/r&..~ LEONARD PAKISH R eglstrar- Recorder rg Attachment