2. Unless otherwise agreed upon by landlord and tenant, the landlord shall make payment directly to the motel or hotel as required under herein. The landlord shall pay for lodging in the motel or hotel, even if the cost of such lodging is more expensive than the tenant's existing rent calculated on a daily basis. All other compensation hereunder shall be payable directly to the tenant, unless otherwise agreed upon by the landlord and tenant.
3. The landlord shall have the option, in lieu of providing tenant relocation as required herein of providing the tenant with comparable housing at any time during the period of the displacement, subject to the following:
(a) Such housing shall be comparable to the tenant's rental unit in location, size, number of bedrooms, furnishings, appliances, accessibility, type and quality of construction, proximity to services and institutions upon which the displaced tenant depends, and amenities, including the allowance for pets should the tenant have pets permitted under the rental agreement or by law.
(b) If the landlord provides comparable housing at any time during the period of displacement, the tenant shall be entitled to remain at that same comparable housing unit throughout the period of displacement.
(c) The landlord shall pay all costs associated with the temporary housing, including rent, even if the temporary housing is more expensive than the tenant's existing rental unit.
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19 (d) If the temporary housing is unfurnished, the landlord shall provide essential furnishings and household items or pay reasonable moving costs for the tenant to move essential furniture and household items to and from the rental unit and the temporary housing.
(e) The landlord and tenant may agree that the tenant will occupy a non- comparable replacement unit provided that the tenant is compensated for any reduction in accommodations, amenities, and services.
4. A landlord and tenant may mutually agree to allow the landlord to pay the tenant a per diem amount for each day of temporary relocation in lieu of providing temporary replacement housing. The agreement shall be in writing and signed by the landlord and tenant and shall contain the tenant's acknowledgment that he/she received notice of his/her relocation rights required herein and that the tenant understands his/her rights.
5. The temporary housing required herein shall be available to tenant within 24-hours of service or posting of any order or notice to vacate. In the event the tenant is not required to immediately vacate, temporary housing shall be available to tenant as of the date the tenant actually vacates.
6. The displacement and relocation of a tenant per this section shall not terminate the tenancy of the displaced tenant. The displaced tenant shall have the right to reoccupy his or her rental unit upon the completion of the work necessary for the rental unit to comply with housing, health, building or safety laws or any governmental order and the tenant shall retain all rights of tenancy that existed prior to the displacement.
7. The tenant shall remain responsible to pay rent to the landlord that is due for the tenant's existing rental unit during the period of displacement.
8. The landlord and the tenant may mutually agree upon a housing type or benefits other than the temporary housing or benefits required herein.
9. The landlord shall provide written notice, before the tenant is temporarily displaced advising the tenant of the right to reoccupy the rental unit under the existing terms of tenancy once the work which necessitated the displacement is completed and the projected completion date of such work. Unless the landlord provides the temporary replacement housing, the tenant shall provide the landlord with the address to be used for the notifications required to be provided by the landlord. When the date on which the rental unit will be available for reoccupancy is known, or as soon as possible thereafter, the landlord shall provide written notice to the tenant by personal delivery, or registered or certified mail. If it became necessary to temporarily relocate the tenant for over 30 days and the tenant has a separate tenancy agreement with a third party housing provider, the landlord shall give the tenant a minimum of 30 days written notice to reoccupy the rental unit. In all other cases, the landlord shall give the tenant a minimum of seven days written notice to reoccupy, unless the landlord gave the tenant written notice of the date of reoccupancy prior to the start of temporary relocation. 332 of 345
20 10. Nothing in this section shall be construed as authorizing a landlord to require a tenant to vacate a unit, except as permitted under federal, state, or local law.
11. The remedies herein are cumulative and in addition to any other remedies available under federal, State, or local law.
12. Option to voluntarily terminate tenancy.
a. If the temporary untenantable conditions of a rental unit are projected to persist for 30 days or more, the tenant of that rental unit shall have the option to terminate the tenancy voluntarily pursuant to a tenant buyout agreement in accordance with the provisions of Section 9.30.035A, and the return of any security deposit that cannot be retained by the landlord under applicable law.
b. If the temporary untenantable conditions of a rental unit continue for 30 days longer than the projected completion date of the work, as set forth in the written notice to tenant, the tenant's option to terminate voluntarily the tenancy pursuant to a tenant buyout agreement in accordance with the provisions of this subchapter shall be renewed.
SECTION 8. Section 9.30.045 of the Glendale Municipal Code, 1995 is hereby added to read as follows:
9.30.045 RENT REDUCTION FOR SERVICE REDUCTION
A. Reduced Services Defined.
1. For the purposes of this ordinance, "reduced services" refer to a significant and extended decrease in housing services and amenities that were included in the original rental agreement and have been provided to the tenant as part of the rental unit.
2. Examples of reduced services may include, but are not limited to, the following:
a. Reduction of essential utilities (e.g., water, heat, electricity). b. Decreased maintenance or repair services.
c. Closure or significant reduction of common area amenities (e.g., fitness facilities, laundry facilities, community spaces).
d. Loss or reduction of parking availability.
e. Reduction of security services.
f. Other services that were explicitly stated in the rental agreement. 333 of 345
21 B. Conditions for Rent Decrease.
1. If a tenant experiences a significant and extended reduction in services as defined in this Chapter, the tenant may be entitled to a rent decrease.
2. The tenant shall provide written notice to the landlord of the reduction in services.
The landlord shall have a reasonable time to address the issue. If the issue is not resolved within a reasonable timeframe, the tenant may request a rent decrease.
C. Determining the Rent Decrease.
1. The amount of the rent decrease shall be determined based on the extent and duration of the reduced services. The decrease in rent shall be proportional to the reduction in services, and it shall be calculated according to best practices as dictated by the market, which may be calculated as a two to ten percent of the total monthly rent based on the type of amenity as compared to other units when considering the valuation of such amenities in establishing rent.
The parties shall engage in good faith negotiations considering factors such as the significance of the amenity in relation to the overall property value, the market value of similar units without the amenity, and when available, any documented costs or savings resulting from the removal.
Adopted by the Council of the City of Glendale on the _______ day of ________, 2023. ______________________________
Mayor
ATTEST:
___________________________________
City Clerk
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES) SS.
CITY OF GLENDALE )
I, Dr. Suzie Abajian, City Clerk of the City of Glendale, hereby certify that the foregoing Ordinance was adopted by the Council of the City of Glendale, California, at a regular meeting held on the _______ day of ________________, 2023, and that the same was adopted by the following vote:
Ayes:
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22 Noes:
Absent:
Abstain:
____________________________
City Clerk
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8 Proposed Revisions to Chapter 9.30 (Rental Rights
Program)
The following is a summary proposed revisions to the rental rights program ordinance. This can be used as a guide along with the redline version of the ordinance to review the proposed changes.
Chapter 9.30 - Title
•Proposed Revisions: The title of Chapter 9.30 from “Just Cause and Retaliatory Evictions” to the following title: "Rental Rights Program.”
Section 9.30.010 - Legislative Purpose
•Proposed Revisions: Updated Legislative Purpose has been update.
9.30.020 Definitions
•Definitions of Base Rent
-Proposed Revisions: The revision aims to differentiate between rent and recurring charges, particularly those associated with utility usage. The current definition categorizes all charges as part of a rent increase.
•Definition of Qualified Tenant
-Proposed Revisions: This modification was introduced to establish the definition of a qualified tenant. A qualified tenant is an individual who is one of the following: disabled, 62 years or older, low income, or a tenant with a school-aged child enrolled in school.
This section elaborates on the specifics of each qualified tenant category in accordance with the California Health and Safety Code.
•Definition of Rent
-Proposed Revisions: Change was made to match definition of base rent, whereby it excluded utilities from being considered rent.
•Definition of Rental Unit
-Proposed Revisions: The definition of a rental unit was expanded to include units that are illegally constructed, thereby subjecting them to the provisions outlined in the ordinance.
-Proposed Revisions: Currently, the ordinance provides exemptions for all duplexes. The proposed change aims to modify this by only exempting duplexes where the owner occupies one of the units as their principal place of residence. -Proposed Revisions: Currently, Section 8 tenants are excluded from the program. The proposed change seeks to eliminate this exemption.
9.30.022 Major Rehab Retroactive Date.
•As it relates to major rehab, the proposed ordinance offers a retroactive date of October 1, 2023.
9.30.025 Requirement of Offering One-Year Written Leases. •Renewal of Lease:
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8 -Proposed Revisions: Currently, the ordinance mandates landlords to provide a 90-day notice to tenants on a one-year lease, offering a new one-year lease annually and anytime there is a rent increase. The proposed change aims to reduce the notice period to 60 days and eliminate the requirement for landlords to offer a new lease annually or during a rent increase. Under the proposed amendment, landlords are only obligated to make an initial offer, and in subsequent years, the offer may be subject to negotiation between the landlord and tenant.
•Applicability:
-Proposed Revisions: Eliminates the exemption for properties with four or fewer units.
This change would ensure that exemptions are uniform across all areas of the ordinance.
9.30.030 Evictions.
•Nuisance:
-Proposed Revisions: The term 'nuisance' has been amended to encompass unlawfully obstructing free passage, generating excessive noise, and displaying aggressive behavior towards neighboring tenants.
•Major Rehab
-Proposed Revisions: Further clarification has been incorporated under 'major rehab' to specify the types of renovations for which a landlord can initiate eviction. This is defined as 'substantial remodel,' encompassing activities such as structural, electrical, plumbing, and mechanical system repairs or alterations.
-Proposed Revisions: Currently, the ordinance stipulates that a unit must be uninhabitable for 30 days during renovation in order to qualify for 'major rehab' evictions. The proposed changes extend this period to 90 days. •Owner Move-In
-Proposed Revisions: Introduces additional requirements for evictions related to owner move-ins, including the stipulation that landlords must place family members or resident managers within two months of a unit in which a tenants was asked to vacate form.
-Proposed Revisions: Another modification involves prohibiting landlords from evicting qualified tenants and restricting the use of this type of eviction to only once per family member.
9.30.033 Rent Based Termination.
•Banking
-Proposed Revisions: Limits the accumulation of a bank up to three years. -Proposed Revisions: Clarifies that the banking provision can be transferred from one owner to the next in the event of a sale.
9.30.035 Required Payment of Relocation Fee.
•Just Cause Eviction Relocation
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8 -Proposed Revisions: Adjusts the existing relocation amount from 2 times Fair Market Rent (FMR) + $1000 to 3 times the greater of FMR or current rent + $2000. Additionally, mandates periodic Council reviews of the relocation amount. •Relocation Assistance for Rent increase over 7 %
-Proposed Revisions: Currently, the relocation formula for increases over 7% follows a tiered system, allowing tenants to receive anywhere from 3 times the proposed rent up to 6 times the proposed rent based on income and the duration of their occupancy. The proposed change simplifies the formula to a uniform 3 times the proposed rent for all tenants, irrespective of income or years of occupancy.
•Payment of relocation
-Proposed Revisions: Introduces a provision stipulating that for qualified tenants, any relocation assistance would be doubled.
NEW SECTION: 9.30.040 Intentional Disrepair/Damage to Rental Unit/Complex •Proposed Revisions: This amendment enhances protections against intentional disrepair or damage to rental units. In addition to the existing safeguards outlined in the California Civil Code, if a rental unit is intentionally allowed to deteriorate to the point of being uninhabitable, the landlord is obligated to provide temporary relocation benefits during the displacement period. These benefits include lodging in a secure hotel or motel, compensation for meals, and laundry services if facilities are lacking. Alternatively, the landlord may choose to offer comparable housing during the displacement period, meeting specific criteria.
New Section: 9.30.045 Rent Reduction for Service Reduction •Proposed Revisions: This amendment introduces protections against a reduction in services. 'Reduced services' are defined as a significant decrease in housing services and amenities originally included in the rental agreement. Examples include disruptions or reductions in essential utilities, loss or reduction of parking availability, and other explicitly stated services in the rental agreement. If a tenant experiences a significant reduction in services, they may be entitled to a rent decrease. The tenant must provide written notice to the landlord, who has a reasonable time to address the issue. If not resolved, the tenant can request a rent decrease.
The amount of the decrease is determined based on the extent and duration of reduced services, proportional to the reduction and calculated according to market best practices. For partial reductions, the decrease is prorated based on the percentage of affected services, and for permanent reductions, it may be calculated as 2 to 10 percent of the total monthly rent.
9.30.090 Applicability.
•Proposed Revisions: This section has been removed as the language added in 2019 for transitional changes is no longer relevant.
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8c
CITY OF GLENDALE, CALIFORNIA
REPORT TO THE CITY COUNCIL
AGENDA ITEM
Report: Glendale Care Program Electric Bill Discount Adjustment.
1. Resolution adjusting Glendale Water & Power’s Glendale Care Program benefit from the current rate of $17.50 to $20.50 effective January 1, 2024, to $23.50 effective July 1, 2024, and to $26.50 effective July 1, 2025, in alignment with the proposed electric rate increases outlined in the Electric Rates Cost of Service Analysis (COSA).
COUNCIL ACTION
Item Type: Action Item
Approved for November 28, 2023 calendar
EXECUTIVE SUMMARY
The proposed electric rate increases resulting from GWP’s 2023 COSA have created the need to also adjust the Glendale Care Program benefit to align the average adjusted bill benefit of program participants in proportion to the proposed electric rate increases.
RECOMMENDATION
Adopt a Resolution adjusting Glendale Water & Power’s Glendale Care Program benefit from the current rate of $17.50 to $20.50 effective January 1, 2024, to $23.50 effective July 1, 2024, and to $26.50 effective July 1, 2025, in alignment with the proposed electric rate increases outlined in the Electric Rates Cost of Service Analysis (COSA).
ANALYSIS
GWP presently provides discounts to qualifying low-income customers through the Glendale Care program. The Glendale Care program was created by City Council on November 12, 2008, and is funded through the Public Benefit Charge. It was generally modeled after the California Alternative Rates for Energy Program that provides a 20% discount for low-income customers of electric and gas investor-owned utilities.
To encourage conservation, GWP opted to set the discount at a flat rate of $10 per month for participants, which at the time equaled approximately 20% of the average low-income customer’s bill. As GWP electric bills declined due to reductions in the fuel adjustment charge, the $10 per month Glendale Care discount increased on a percentage bases of a typical bill from 20% to 25%.
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Thus in 2013, to offset the pending annual rate increases of 8%, 7%, 5%, 2% and 2%, City Council approved nominal increases of the monthly discount each year for the following five years from $10 to $13.
On June 12, 2018, City Council approved the Public Benefit Programs Plan for FY 2018-2019 and 2019-2020, increasing the Glendale Care monthly discount from $13 to $15.
On June 16, 2022, City Council approved an increase to the Glendale Care monthly discount from $15 to $17.50 based on staff recommendation.
The 2023 Electric Rates Cost of Service Analysis (COSA) conducted by GWP’s consultant, NewGen Strategies and Solutions, LLC has led to the conclusion that GWP must implement an electric rate increase to meet its revenue requirements.
The recommended rate increases include a series of average increases over a three- year period of effective January 1, 2024, July 1, 2024, and July 1, 2025.
GWP recognizes the need to adjust the current Glendale Care Program benefit amount of $17.50 in proportion to the proposed electric rate increases.
The chart below illustrates the average monthly electric consumption and electric bill for the customers currently enrolled in the Glendale Care Program. 340 of 345
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The current Glendale Care Program benefit of $17.50 represents 24.31% of the current average monthly bill for enrolled participants. If the $17.50 benefit were to remain static throughout the proposed electric rate increases, the benefit percentage would reduce to
20.5%, 18% and 15.8% as each rate increase is implemented.
Adjusting the Glendale Care Program benefit in proportion to the proposed electric rate increases using the current 24.31% average benefit results in an adjusted benefit of $20.50 for the remaining six months of fiscal year 2024, $23.50 for fiscal year 2025, and $26.50 for fiscal years 2026, 2027, and 2028.
STAKEHOLDERS/OUTREACH
Glendale Care Program participants will be notified of the Council’s action to increase the program’s benefit in response to the proposed electric rate increases.
FISCAL IMPACT
The anticipated cost for the remaining six months of this fiscal year 2023-24 for the Glendale Care Program benefit, inclusive of the anticipated increase, will cost an estimated $1,353,000 with the current enrollment status. Due to lower than estimated enrollments this fiscal year, the department budget can absorb this additional cost and therefore no new appropriation is being requested at this time. The funding is outlined below:
Existing Appropriation
Amount Account String Funding Source
$1,353,000 GL: 45512-2910-GWP-4800-P0000- Public Benefit Fund The Glendale Care Program benefit increase will cost an additional $372,000 for fiscal year 2025. The additional cost associated will be absorbed within the Public Benefits Charge (PBC) budget and will not adversely affect other PBC funded programs. The costs pertaining to fiscal years 2026, 2027, or 2028 will be requested for approval during the annual budget process.
ENVIRONMENTAL REVIEW (CEQA/NEPA)
CEQA does not apply to projects where the lead agency determines "with certainty that there is no possibility that the activity in question may have a significant effect on the environment." CEQA Guidelines (14 Cal. Code Regs.) § 15061(b)(3). Here, the action involves adjusting the Glendale Care Program benefit to align the average adjusted bill benefit of program participants in proportion to the proposed electric rate increases.
There is no possibility that this action may have a significant effect on the environment.
CAMPAIGN DISCLOSURE
Not applicable.
ALTERNATIVES TO STAFF RECOMMENDATION
Alternative 1: Choose not to approve and authorize the requested action, which will keep the Glendale Care Program benefit at the current rate of $17.50 per 341 of 345
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month.
Alternative 2: Consider any other alternative not proposed by staff.
ADMINISTRATIVE ACTION
Submitted by:
Mark Young, General Manager - Glendale Water and Power
Prepared by:
Scott Mellon, Assistant General Manager - Power Management Approved by:
Roubik R. Golanian, P.E., City Manager
EXHIBITS/ATTACHMENTS
None.
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1 RESOLUTION NO. ________
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GLENDALE,
CALIFORNIA, ADJUSTING THE GLENDALE CARE PROGRAM BENEFIT
INCLUDED IN THE GLENDALE WATER & POWER PUBLIC BENEFIT
PROGRAMS PLAN AND THE LOW CARBON FUEL STANDARD PROGRAMS PLAN FOR FISCAL YEARS 2023-2024 AND 2024-2025
WHEREAS, the City of Glendale, through Glendale Water & Power ("GWP"), operates a municipal utility for the distribution of electrical energy to the citizens of the City of Glendale; and
WHEREAS, beginning on January 1, 1998, California State law mandated that each local publicly owned electric utility establish a non-bypassable, usage- based charge on local distribution service of 2.85% to fund investments in programs "for the Public Good" (hereinafter "Public Benefit Charge" or "PBC"); and
WHEREAS, the state-mandated Public Benefit Charge was adopted by the City Council and codified as Section 13.44.425 of the Glendale Municipal Code, 1995, effective January 1, 1998; and
WHEREAS, subsequent amendments to the California Public Utilities Code necessitated significant increases in PBC program production and reporting as well as new program offerings; and
WHEREAS, on February 12, 2008, the City Council adopted changes to the City's existing solar programs, as well as an increase in the PBC to 3.6% of retail electricity charges; and
WHEREAS, the PBC charge has remained in effect and has not been extended or increased since February 12, 2008, and the proposed Public Benefit Charge Program for FY 2020-2021 implements the PBC charge as set forth in GMC Section 13.44.425; and
WHEREAS, State law requires that the PBC program allocate funding into four categories: low-income, energy efficiency, renewable resources, and research and development; and
WHEREAS, on June 13, 2023, the City Council adopted Resolution No. 23-87 approving the Public Benefit Programs Plan for FY 2023-2024 and FY 2024- 2025 (“PBC Plan”) as set forth in Exhibit 1 attached to Resolution No. 23- 87 allocating funds into various programs within the categories specified by State law and by Section 13.44.425 of the Glendale Municipal Code; and · 343 of 345
2 WHEREAS, included in the PBC Plan is the Glendale Care Program Electric Bill Discount Adjustment which provides a $17.50 discount on the monthly electric bills of qualifying Glendale Water & Power (“GWP”) customers; and
WHEREAS, on November 14, 2023, the City Council introduced an Ordinance establishing GWP’s class-specific Electric Rates; and WHEREAS, in anticipation of the City Council adopting the Ordinance establishing GWP’s class-specific Electric Rates on November 28, 2023 with an effective date for the new electric rates 30 days thereafter, the City Council finds in the best interest of the GWP customers to increase the financial assistance to qualifying GWP electric customers under the Glendale Care Program, from $17.50 to $20.50 for the remaining 6 months of fiscal year 2024, and thereafter from $20.50 to $23.50 effective July 1, 2024 for fiscal year 2025, and from $23.50 to $26.50 effective July 1, 2025.
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF GLENDALE:
SECTION 1: The Council has considered the Report Dated November 28, 2023 by the General Manager of GWP and hereby approves the modification of the Glendale Care Program under the PBC Plan adopted per Resolution No. 23- 87 on June 13, 2023, to increase the financial assistance to qualifying GWP electric customers from $17.50 to $20.50 for the remaining 6 months of fiscal year 2024, and thereafter from $20.50 to $23.50 effective July 1, 2024 for fiscal year 2025, and from $23.50 to $26.50 effective July 1, 2025.
SECTION 2: The Council does hereby authorize the City Manager, or his designee, to move appropriations without limit between detail accounts comprising the budget detail and budget appropriation of the various approved PBC programs set forth in the GWP PBC Plan in order to implement the new Glendale Care Program assistance amounts as set forth in Section 1 of this Resolution for qualifying GWP electric customers.
Adopted by the Council of the City of Glendale on this ___ day of _________, 2023.
________________________________
Mayor
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3 ATTEST:
_____________________________________
City Clerk
STATE OF CALIFORNIA ) SS.
COUNTY OF LOS ANGELES )
I, Suzie Abajian PhD, City Clerk of the City of Glendale, hereby certify that the foregoing Resolution No. _______________ was adopted by a majority vote of the Council of the City of Glendale, California, at a regular meeting held on the ______ day of ______________________, 2023, and that the same was adopted by the following vote:
Ayes:
Noes:
Absent:
Abstain:
________________________
City Clerk
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