February 24, 2017 | Page 21
BEVERLY HILLS
Craig Corman Re-Appointed To Planning Commission To Fill Expected Fisher Vacancy By Matt Lopez Former Planning Commission chair Craig Corman was reappointed to the commission by the City Council on Tuesday to fill the expected vacancy of Howard Fisher. Fisher, a current commissioner, is running unopposed for city treasurer and will likely take on that role after the March 7 election. A panel comprised of Mayor John Mirisch, councilmember Lili Bosse, Planning Commission Chair Joe Shooshani and Vice Chair Lori Greene Gordon interviewed five applicants who applied for
RENTERS
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to speak their peace in front of the City Council. Renters, many of whom said they moved into the district solely so their kids could attend Beverly Hills schools, told stories of yearly 10 percent increases that were forcing them out of the City, all while living in apartment complexes that often times, weren’t being maintained to meet the standard of living the residents felt they were paying for. “My rent has gone up $600 in less than a year,” local attorney David Berke said. “Beverly Hills is not a city of kindness. I know we would dream that it was so and would love to say it was so, but it’s a city of privilege and wealth. Unless we accept that, we’re never going
RELOCATION FEES (continued from page 1)
tenants were shocked to find that the City Council agenda showed a very different ordinance than the one that was approved by the City Council. The agenda did not reflect recommendations from the Human Relations Commission. “We recommended more time to analyze information and to hold later meetings. We didn't make means test recommendations. We didn't make any recommendations as to rental increase or relocation fee formulas,” said HRC Commissioner Ori Blumenfeld. Renters who appeared at city council and commission meetings say they have risked eviction by going public, and are understandably nervous. Previously, rent control discussions took place within Community Services, under the direction of Human Services Director James Latta and Director of Community Services Nancy Hunt-Coffey. The agenda item was presented by Director of Community Development Susan Healy Keene, and signed by Code Enforcement Manager Nestor Otazu and Assistant Director of
HERB FINK
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Ten years ago, Fink relocated his Rodeo Drive Theodore boutique to Camden Drive, just a few doors down from Mr Chow restaurant, seemingly edged out by the corporate conglomerates he had helped lure to the street shortly after launching the Rodeo Drive Committee in the 1970’s. “We are all indebted to Herb Fink for his contributions toward helping to spearhead the Rodeo Drive Committee and helping to establish Rodeo Drive as a world class shopping destination,” said current RDC President Mark Tronstein. Fink is survived by his wife and business partner Norma and three daughters.
City Clerk Byron Pope said the staff will re-advertise for the vacancy beginning in May, to have a permament commissioner ready and in place beginning in 2018, when Corman’s replacement term expires. “I’m glad because as we move forward, we’re going to be dealing with the Hillside Ordinance and we need someone that isn’t on the hillside to deal with this,” Vice Mayor Nancy Krasne said. “I want them to have the experience with the Planning Commission that Craig has.”
quickly made Theodore a favorite place to shop for stars such as Cher, Jaclyn Smith, and Farrah Fawcett, and his growing success subsequently encouraged Fink to open additional Theodore boutiques throughout the southland. However, his Beverly Hills boutique, on the 400-block of North Rodeo Drive, across the street from where Ralph Lauren's Rodeo Drive flagship store now stands, was a destination for the fashion-conscious throughout the vintage L.A. era where places like the nearby Daisy nightclub meant you had to be attired in the hippest of fashions.
to mitigate it.” Landlords who opposed the ordinance said dropping rental increases from 10 percent to 3 percent was simply unsustainable for them and would cause them to lose money on their investments. One landlord said he rarely ever raised rates to 10 percent, but that it was a tool he liked having at his disposal if maintenance costs became onerous, or he had a problem tenant that he wanted to force out. That landlord said he would probably have to institute yearly three percent increases to keep up financially. The ordinance includes a Rent Increase Application Process, which City Attorney Larry Wiener told the council the City was “constitutionally required” to include. That process allows for a landlord
who desires a rent increase of more than three percent to apply with a hearing officer. That officer will use net operating income for the year 2016 as a base to determine whether or not the landlord is receiving a reasonable rate of return on their investment. Meaning, if a landlord has an increase in operating expenses, they may be entitled to increase rent in order to maintain the same rate of return they had the previous year. An amendment was, however, made by councilmember Lili Bosse, protecting renters from incurring pass-through costs from any future state or local law that might increase expenditures by the landlord. The original iteration of the ordinance allowed for the landlord to pass that cost on to the
tenant. The hearing officer, at least for the time being, would be someone contracted from the City, although the option is open for that responsibility to eventually be moved to a Council-appointed commission, rent-control board or singular officer. City Manager Mahdi Aluzri said it would likely take months to appoint a new commission or board into such a role. Late in the meeting, Mayor John Mirisch and Bosse pushed hard for the hearing officer to be a resident or group of residents with no financial stake in the matter. Although it was near midnight, Mirisch even asked Wiener about the feasibility of taking a break so Wiener could craft changes in the ordinance that would make the hearing officer a resident or
group of residents. “Whoever we have be a hearing officer should not be paid, but someone who comes from within the community, someone invested in the company, maybe it’s three people,” Mirisch said. The rest of the council wasn’t keen on taking the time to change the policy at that point in the evening, with councilmember Julian Gold noting you “can’t re-write the law at midnight.” The City is expected to hold forums and town hall meetings between landlords and renters over the next several months to help create the framework for what will eventually become a permanent rent stabilization plan.
Community Development Raj Patel in addition to HuntCoffey and Latta. Hunt-Coffey says rent control is “transitioning into Community Services, which will take the lead on this project.” She sites housing stock, permits and code enforcement as being under the auspices of Community Services. Tuesday saw the passage of two ordinances, including an Urgency Ordinance and a regular Ordinance. This new Urgency Ordinance is effective immediately and protects renters until the regular ordinance is in effect. City law requires two readings of a new ordinance at City Council spaced at least two weeks apart. The next City Council meeting is not until April 4, however, due to the election and city council reorganization. Assuming it’s on that agenda, the new ordinance will go into effect 30 days after the second reading, which will be May 4. The Jan. 24 Urgency Ordinance used figures culled from the Santa Monica rent stabilization ordinance. Following the adoption of that ordinance on Jan. 24, which was to be in
effect for 30 days, City Attorney Laurence Wiener together with staff, crafted an ordinance that reduced the relocation fees for a no-cause eviction substantially from $9,050 to $6,193 for a studio, $13,900 to $9,148 for a one-bedroom and $18,850 to $12,394 for a two-bedroom. For a family with a disability, minors or a senior add $2,000. For a family with a disability, minors or a senior, the costs in Santa Monica rise to $10,350 for a studio, $16,000 for a one-bedroom and $21,650 for two bedrooms or more. The fees are based on research by the staff on the actual cost of relocating. Rents were determined by checking Westside Rentals; moving fees were determined by calling movers. There was no differentiation between the load size for a single vs. a multiple bedroom unit. Staff found studios rent for $1,600; a 1-bedroom for $2,585 and a 2-bedroom for $3,667. First and last month’s rent plus a security deposit would be $4,600, $7,755 and $11,001 respectively. They calculate local moving rates to cost $1,116 and utility start-ups
to be $277. “This cannot be used as a disincentive,” said Wiener. Clearly, it is not. Many residents who live in rental units are asking how the fees can be so much lower than Santa Monica and West Hollywood and why there is a rent increase application process, which was not in the original ordinance. This could allow apartment owners to raise rents more than three-percent, but not without a review by a contracted, appointed or existing individual or panel, to be determined. They would also be able to raise rents if they can show that they have had extraordinary expenses. City staff also changed the rent increase to three-percent or CPI, whichever is greater. Though there will be no increases until June 2018, it still burdens the renter with an indefinite increase in their rent. “There were three things that I added,” said Wiener. “One was a rent adjustment process based on net operating income. The rent adjustment process is found in every rent control ordinance in California. The second was the relocation fees. Fees in Santa Monica
were based on the difference between the rent-controlled unit and the market rate for the unit. In Beverly Hills, we have only one month of rent control. That did not work for us. It was based on market research to figure out how much it would cost to move. And third, the rent increase, which per council direction we held at threepercent, but in June 2018 it can be adjusted for inflation if inflation is greater than three-percent. Wiener pointed out that the roundtable discussions will have until June 2018 to come to a compromise. It was not clear if there would be a review of the relocation fees at that time. “Tuesday night was a beautiful landmark moment for Beverly Hills; truly, among my proudest votes. Finally, our residents can be assured that their voice is heard. We are a community with heart that values everyone who lives here. We will continue to have round tables to bring together the landlord and tenants so that we can strengthen this ordinance to ensure a fair and balanced protection for everyone,” said Councilmember Lili Bosse.
Craig Corman
the vacancy on Feb. 16. The panel declined to recommend a commissioner from that pool, and instead requested to call up Corman to serve the completion of Fisher’s term, which expires Dec. 31, 2017.