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R11453 City Council Meeting: August 3, 2022 Santa Monica, California RESOLUTION NUMBER 11453 (CCS) (City Council Series) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA SUBMITTING TO THE VOTERS A MEASURE TO PROVIDE THE RENT CONTROL BOARD WITH AUTHORITY TO DISALLOW OR, ALTERNATIVELY, MODIFY OTHERWISE-ALLOWED ANNUAL GENERAL ADJUSTMENTS TO RENT CEILINGS DURING A STATE OF EMERGENCY DECLARED BY THE PRESIDENT OF THE UNITED STATES, THE GOVERNOR, OR THE LOS ANGELES COUNTY DEPARTMENT OF PUBLIC HEALTH OFFICER, OR UPON THE DECLARATION OF A LOCAL EMERGENCY BY THE CITY COUNCIL OR DIRECTOR OF EMERGENCY SERVICES, WHILE MAINTAINING THE LANDLORD’S ABILITY TO PETITION FOR AN UPWARD RENT ADJUSTMENT, AT THE GENERAL MUNICIPAL ELECTION TO BE HELD ON TUESDAY NOVEMBER 8, 2022, AND AUTHORIZING CITY COUNCILMEMBERS TO FILE WRITTEN ARGUMENTS FOR OR AGAINST THE MEASURE AND DIRECTING THE CITY ATTORNEY TO PREPARE AN IMPARTIAL ANALYSIS OF THE MEASURE. WHEREAS, the City’s Rental Control Law (Article XVIII of the City Charter, also referenced as “RCCA”) prohibits evictions of tenants except as enumerated in the law; and WHEREAS, the Rent Control Board derives its authority solely from the language of the Charter; and WHEREAS, administrative bodies, such as the Board, do not have general police powers and cannot act in a way that contravenes the instrument from which they were created; and DocuSign Envelope ID: 2BFB9404-709E-457D-8471-1D54A8BD9BA5 WHEREAS, the Rent Control Board, unlike the Governor, a city, or a county, has not been granted emergency powers; and WHEREAS, the Board is not the governing body of the City of Santa Monica, and for that reason has no emergency powers under the Emergency Services Act nor does any other state law grant emergency powers to a municipal administrative agency; and WHEREAS, the global pandemic due to COVID-19 has caused unprecedented hardships, disruptions and long-term impacts that continue to affect Santa Monica’s residents; and WHEREAS, while there has been some relief in the form of an eviction moratorium, rental assistance and other efforts to prevent displacement, those programs are winding down while the pandemic’s impacts continue to be felt; and WHEREAS, inflation rates continue to spike and rising costs are hampering residents’ ability to recover from the loss of income and unexpected expenses that many experienced during the pandemic’s first two years; and WHEREAS, COVID-19 cases are increasing even as mitigation measures, such as masking and social distancing, are no longer required; and WHEREAS, other rent stabilization jurisdictions have been able to adjust to these conditions by implementing temporary freezes on rent increases for controlled units; and WHEREAS, because these jurisdictions are not Charter cities, they have the flexibility to enact measures through ordinance changes passed by the governing body; and WHEREAS, by contrast, changes to Santa Monica’s Charter can only be accomplished by a vote of the citizens of Santa Monica; and DocuSign Envelope ID: 2BFB9404-709E-457D-8471-1D54A8BD9BA5 WHEREAS, the Rent Control Board has proposed an amendment that would give the Rent Control Board the discretion to respond to future public health emergencies by suspending otherwise-allowed annual general adjustments if such a suspension is necessary to protect the public’s health and safety; and WHEREAS, the City Council, after consideration of the Board’s recommendation, believes it necessary to empower the Board with authority to modify or disallow rent increases upon the declaration of an emergency during a state of emergency declared by the President of the United States, the Governor, or the Los Angeles County Department of Public Health Officer, or upon the declaration of a local emergency by the City Council or Director of Emergency Services; and WHEREAS, the proposed amendment is not a blank check; this authority could only be utilized during a declared state of emergency; and WHEREAS, the Board would also be required to make findings that the public’s health and safety is at risk and that implementing a rent increase freeze would mitigate the risks of displacement and the attendant public health harms; and WHEREAS, an owner would still be able to petition for a rent increase per the petition process in Section 1805 of the City Charter during a state of emergency declared by the President of the United States, the Governor, or the Los Angeles County Department of Public Health Officer, or upon the declaration of a local emergency by the City Council or Director of Emergency Services if the Board imposes a rent freeze or modification that would prevent the owner from obtaining a fair and reasonable return; and DocuSign Envelope ID: 2BFB9404-709E-457D-8471-1D54A8BD9BA5 WHEREAS, the City Council has proposed language for the Board to disallow or modify rent increases during states of emergency: Section 1804(a) Temporary Freeze (i) Rents shall not be increased during the one hundred-twenty (120) day period following the date of adoption of this Article. (ii) Notwithstanding Section 1805, the Board may, in its discretion and in order to protect the public’s health and safety, disallow or, alternatively, modify otherwise-allowed annual general adjustments to rent ceilings during a state of emergency declared by the President of the United States, the Governor, or the Los Angeles County Department of Public Health Officer, or upon the declaration of a local emergency by the City Council or Director of Emergency Services. Nothing in this section precludes a landlord from filing a petition for an upward rent adjustment per Section 1805 of the City Charter. Section 1805. WHEREAS, the City Council has considered and approved the Board’s recommendation because these amendments are in the public interest because they would provide protections to tenants during a declared state of emergency; and WHEREAS, pursuant to California Elections Code Section 10403, the City Council has previously requested that the County of Los Angeles consent and agree to the consolidation of all aspects of a General Municipal Election with the Statewide General Election scheduled for Tuesday, November 8, 2022, for the purpose of electing members of the Santa Monica City Council, the Santa Monica Rent Control Board, the Santa Monica-Malibu Unified School District, and the Santa Monica College Community College District. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES RESOLVE AND PROCLAIM AS FOLLOWS: DocuSign Envelope ID: 2BFB9404-709E-457D-8471-1D54A8BD9BA5 SECTION 1. At the General Municipal Election called for November 8, 2022, the following measure shall be submitted to the qualified electors of the City of Santa Monica: PROPOSITION " ": Shall the City Charter be amended to allow the Rent Control Board to disallow or modify annual general rent adjustments for rent controlled units during a declared state of emergency by the President of the United States, the Governor, the Los Angeles County Department of Public Health Officer, or the City Council or Director of Emergency Services while maintaining the landlord’s ability to petition for a rent adjustment per Section 1805 of the City Charter? Yes _________ No SECTION 2. That the City Clerk shall file a certified copy of this resolution with the Board of Supervisors and with the county election department of the County of Los Angeles. SECTION 3. That the City of Santa Monica recognizes that additional costs may be incurred by the County by reason of the addition of this measure to the ballot and agrees to reimburse the County for any additional costs. SECTION 4. The City Clerk shall transmit to the City Attorney, in accordance with applicable law, a copy of the proposed measure. The City Attorney shall prepare an impartial analysis of the measure, which shall not exceed 500 words in length. The impartial analysis for each measure shall be filed by the date set by the City Clerk for the filing of primary arguments. In accordance with applicable law, not less than 10 calendar days before the City Clerk submits the official election materials for printing, DocuSign Envelope ID: 2BFB9404-709E-457D-8471-1D54A8BD9BA5 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 measure described above and which is contained in Exhibit 1 to this Resolution, which Exhibit is incorporated by reference herein: FOR: _____________________________________________ AGAINST: _____________________________________________ All written arguments filed by any person in favor of or against the 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 in accordance with applicable law, 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 the measure, which is contained in Exhibit 1, together with the City Attorney impartial analysis, and any arguments for or against the measure, as well as any rebuttals, to be mailed to all qualified voters with the sample ballots. 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 the measure to be published once in the official newspaper and in each edition thereof during the day of DocuSign Envelope ID: 2BFB9404-709E-457D-8471-1D54A8BD9BA5 publication. The City 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 Numbers 11425 and 11426 are referred to and incorporated into this resolution for more particulars concerning the conduct of General Municipal Election to be held on November 8, 2022, 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: _________________________ DOUGLAS SLOAN City Attorney DocuSign Envelope ID: 2BFB9404-709E-457D-8471-1D54A8BD9BA5 Exhibit 1 Section 1804(a) Temporary Freeze shall be added to the City Charter (i) Rents shall not be increased during the one hundred-twenty (120) day period following the date of adoption of this Article. (ii) Notwithstanding Section 1805, the Board may, in its discretion and in order to protect the public’s health and safety, disallow or, alternatively, modify otherwise-allowed annual general adjustments to rent ceilings during a state of emergency declared by the President of the United States, the Governor, or the Los Angeles County Department of Public Health Officer, or upon the declaration of a local emergency by the City Council or Director of Emergency Services Nothing in this section precludes a landlord from filing a petition for an upward rent adjustment per Section 1805 of the City Charter. DocuSign Envelope ID: 2BFB9404-709E-457D-8471-1D54A8BD9BA5 Adopted and approved this 3rd day of August 2022. __________________________ Sue Himmelrich, Mayor I, Denise Anderson-Warren, City Clerk of the City of Santa Monica, do hereby certify that Resolution No. 11453 (CCS) was duly adopted at a meeting of the Santa Monica City Council held on the 3rd day of August 2022, by the following vote: AYES: Councilmembers Brock, Davis, De la Torre, Negrete, Parra, Mayor Pro Tem McCowan, Mayor Himmelrich NOES: None ABSENT: None ATTEST: _____________________________________ Denise Anderson-Warren, City Clerk DocuSign Envelope ID: 2BFB9404-709E-457D-8471-1D54A8BD9BA5