AGENDA REPORT
Meeting Date: November 19, 2024
Item Number:
To: Honorable Mayor & City Council
From: Michael Forbes, Director of Community Development Nestor Otazu, Deputy Director of Rent Stabilization
Subject: AN ORDINANCE OF THE CITY OF BEVERLY HILLS AMENDING
THE BEVERLY HILLS MUNICIPAL CODE TO ELIMINATE THE
RENT STABILIZATION COMMISSION AND FINDING THE
ORDINANCE EXEMPT FROM THE CALIFORNIA
ENVIRONMENTAL QUALITY ACT (CEQA)
Attachment: 1. Draft Ordinance
RECOMMENDATION
Staff recommends that the City Council:
1. Review and discuss the attached ordinance and;
2. Move to waive the full reading and introduce for first reading the ordinance entitled: “AN
ORDINANCE OF THE CITY OF BEVERLY HILLS AMENDING THE BEVERLY HILLS
MUNICIPAL CODE TO ELIMINATE THE RENT STABILIZATION COMMISSION AND
FINDING THE ORDINANCE EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA).”
INTRODUCTION
In 2019, the City Council adopted an ordinance to establish the Rent Stabilization Commission (“RSC”). The RSC is charged with making recommendations to the City Council concerning amendments to the Rent Stabilization Ordinance that have not been resolved by the Council, and performing any other functions that may be designated by resolution or motion of the Council. As discussed below, the RSC has fulfilled those responsibilities.
Meeting Date: November 19, 2024
DISCUSSION
The City Council charged the RSC with discussing and making recommendations on six specific topics. The RSC met regularly over the past four years to discuss the topics as directed by the Council. The RSC has concluded its discussions and made recommendations on each of the topics.
Some recommendations have already been reviewed, and some have been implemented. Others are pending further consideration by the Council Liaisons and City Council.
With consideration of these topics completed, the RSC does not currently have specific matters to discuss or business to conduct. The RSC does not serve as a hearing body for any applications, appeals, or processes under the Rent Stabilization Ordinance.
On May 14, 2024, the Commission Standardization Ad Hoc Committee (Vice Mayor Nazarian and Councilmember Corman) discussed the RSC’s history, responsibilities, and activities over the past four years. In light of the RSC having completed its discussion of the issues as directed by Council and having no other business to conduct, the Committee voted to recommend that the City Council sunset the RSC as having fulfilled its purpose. The Committee also noted the recent difficulty in recruiting to fill RSC vacancies and the challenges posed by the RSC’s unique member structure and quorum requirements.
On June 18, 2024, the City Council conducted a duly noticed study session and, based upon the recommendation of the Committee, directed staff to bring forward an ordinance for consideration by the City Council to sunset the RSC. It should be noted that during the discussion, the City Council gave direction that current members of the RSC should not be required to wait a year before applying to serve on another City commission. Section 5 of the draft ordinance implements that specific direction from the City Council. If the attached ordinance is introduced and adopted, the ordinance will sunset the RSC.
FISCAL IMPACT
Sunsetting the RSC would result in a positive fiscal impact by reducing the staff time, resources, and direct costs associated with the RSC including preparation and distribution of agenda packets, conducting and televising meetings, commissioner recruitment, and general commission administration.
Michael Forbes, AICP
Director of Community Development
Approved By
ATTACHMENT 1
DRAFT ORDINANCE
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B0785-0023\2988134v1.doc
ORDINANCE NO. 24-O-________
AN ORDINANCE OF THE CITY OF BEVERLY HILLS
AMENDING THE BEVERLY HILLS MUNICIPAL CODE
TO ELIMINATE THE RENT STABILIZATION
COMMISSION AND FINDING THE ORDINANCE
EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL
QUALITY ACT (CEQA)
THE CITY COUNCIL OF THE CITY OF BEVERLY HILLS DOES ORDAIN AS FOLLOWS:
Section 1. In 2018, the City Council amended Chapter 6 of Title 4 of the Beverly Hills Municipal Code to establish more comprehensive rent stabilization rules for the majority of rental units in the City that are subject to that Chapter of the Code, including regulations governing just cause evictions. The City Council further directed that the Rent Stabilization Commission (“Commission”) should be established to review and provide recommendations to the City Council regarding possible revisions to Chapter 5 and Chapter 6 of Title 4 of the Municipal Code that had not been resolved by the City Council and to undertake other tasks assigned by the City Council to the Commisssion from time to time. Accordingly, the City Council adopted an ordinance that established the Commission and thereafter appointed members and alternates to serve on the Commission. The Commission subsequently conducted duly noticed public meetings and reviewed and analyzed the issues that the City Council had instructed the Commission to consider and provided recommendations to the City Council about those issues.
Section 2. On June 18, 2024, the City Council conducted a duly noticed study session and determined that because the Rent Stabilization Commission had completed the tasks that the City Council had assigned to the Commission, that the Commission was no longer necessary and should be discontinued.
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B0785-0023\2988134v1.doc
Section 3. This Ordinance and the elimination of the Commission were assessed in accordance with the authority and criteria contained in the California Environmental Quality Act (CEQA), the State CEQA Guidelines, and the environmental regulations of the City. The City Council finds that the elimination of the Commission and the adoption of this Ordinance will not have a significant environmental impact and is exempt from CEQA pursuant to Section 15061(b)(3) of Title 14 of the California Code of Regulations, which states that CEQA applies only to projects which have the potential for causing a significant effect on the environment. This exemption is applicable because this Ordinance is making a change to the Beverly Hills Municipal Code that eliminates an administrative body that provides recommendations to the City Council regarding rent stabilization issues. Therefore, it can be seen with certainty that this Ordinance and the elimination of the Commission have no potential to cause a significant effect on the environment.
Section 4. The City Council hereby repeals Article 5 (“Rent Stabilization Commission”) of Chapter 2 of Title 2 of the Beverly Hills Municipal Code.
Section 5. Notwithstanding the provisions of Section 2-2-105 D of the Beverly Hills Municipal Code, former members and alternates of the Rent Stabilization Commission shall not be required to wait one year after the end of their term of service on the Commission before applying to serve on another City commission.
Section 6. Severability. If any section, subsection, subdivision, sentence, clause, phrase, or portion of this Ordinance or the application thereof to any person or place, is for any reason held to be invalid or unconstitutional by the final decision of any court of competent jurisdiction, the remainder of this Ordinance shall be and remain in full force and effect. -3-
B0785-0023\2988134v1.doc
Section 7. Publication. The City Clerk shall cause this Ordinance to be published at least once in a newspaper of general circulation published and circulated in the City within fifteen (15) days after its passage in accordance with Section 36933 of the Government Code, shall certify to the adoption of this Ordinance, and shall cause this Ordinance and her certification, together with proof of publication, to be entered in the Book of Ordinances of the Council of this City.
Section 8. Effective Date. This Ordinance shall go into effect and be in full force and effect at 12:01 a.m. on the thirty-first (31st) day after its passage.
Adopted:
Effective:
LESTER J. FRIEDMAN
Mayor of the City of Beverly Hills,
California
ATTEST:
_________________________(SEAL)
HUMA AHMED
City Clerk
APPROVED AS TO FORM: APPROVED AS TO CONTENT:
___________________________ _____________________________ LAURENCE S. WIENER NANCY HUNT-COFFEY
City Attorney City Manager