HomeMy WebLinkAboutStaff Report 5.A 04/01/2013 A en&vItemw#5.A
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DATE: April 1, 2013
TO: Honorable Mayor and,Members of the City Council Through City Manager
FROM: Bonne Gaebler, Housing Administrator
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SUBJECT: Resolution Authorizing Program Administration Fees for the Mobile Home Park
Space Rent Stabilization Program for 2013
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RECOMMENDATION I
It is recommended that the City Council Adopt the Attached Resolution Authorizing Program
Administration Fees for the Mobile-Home Park Space:Rent:Stabilization,Program for 2013.
BACKGROUND 1
Petaluma Municipal Code Section 6.50.60 (the "Ordinance") authorizes the-City to collect an
annual fee,for administration of the ordinance.1 The Ordinance states that "on or before April
30"' of each year and every sub-Sequent year each mobile home park owner shall pay to the City
Clerk of the City of Petaluma a mobile home park rent:stabilization program administration fee
for each mobile home space as:defined herein,lincludingboth occupied and unoccupied mobile
home spaces in the owner's mobile home park1except for those spaces,subject to a rental
agreement in full compliance with therequirements of Civil Code:Sections 7998.-17 (a) and (b)."
Fifty percent of the fee can be:passed'through by the park owner to the tenant.
The City has a three-year agreement(through June 30, 2015) with the Sonoma County
Community Development Commission (SCCDC ) to administer•its.rent stabilization.program.
SCCDC provides a`staff person to process arbitration petitions and select qualified arbitrators for
administrative hearings. SCCDC also administers rent stabilization programs for three other
cities and the County.
DISCUSSION
Pursuant to the Petaluma Municipal Code, the City Council is-authorized to-adopt,a mobile home
park space rent stabilization fee on an annual basis. Staff requests updates on spaces covered by
the Ordinance versus°long-term lease holders at each park annually. This year it was determined
that there are 239 spaces which are,covered under the Ordinance. A breakdown by park is
attached as Attachment #1.
Agenda Revi- : ii
CityAuorn• _, Finance I irect p C anage
FINANCIAL,IMPACTS
Since the Ordinance was enacted in 1995, Council hasapproved fee modifications based on the
costs to administer the program and retain a reserve for unanticipated legal fees. In FY 2010-11
Council restored the fee-to its original $65 in order to-cover the substantial attorney fees caused
by previous years' arbitrations and appeals. Recent years have been free of those costs and this
year shows a,predicted year-end balance of$14,893 (see the Sources and Uses Chart,
Attachment#2).
Staff recommends that the administrative fee remain at $65/space.This will allow the program to
pay annual expenses and to continue building a reserve capable of covering any unanticipated
legal/arbitration costs. Building"a healthy reserve is important because, in the past, annual
administration fees-have been augmented from the PCDC.Low-Mod.Housing Fund. As a result
of redevelopment dissolution, that source is no longer'available, leaving the limited in-lieu
housing fund as the only alternative to cover excess costs.
After City Council adoption of the resolution authorizing the 2013 administrative fees,
assessments will be sent to all park,owners by the Finance Department.
ATTACHMENTS
I. Rent Stabilization Ordinance Survey by Park
2. Sources and Uses Chart
3. Resolution
s/housing/2013mobilehomestaff report
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Attachment #1
RENT ORDINANCE SURVEY BY PARK
Nameiof Park Number of Spaces Spaces Under Ordinance
Capri 69 I 0
Leisure Lake 134 62
Little Woods 77 77
Petaluma Estates 215 2
Royal Oaks 94 36
Sandalwood 177 39
Youngstown 102 23
Total Park Spaces 868 '239
Attachment#2
MOBILE I-IOMERENT STABILIZATION PROGRAM
Sources and Uses
April 2013
2007 2008 2009 2010 2011 2012 2013
Revenues $4,950 $9;400 $9,600 $14,365 $11,660: $15,275 $15,275
Expenditures
Son. Co. 3;450 12069 7,966 11,211 0.00 935 382
Comm. Dev
Son. Co. 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Attorney
Misc. 0.00 0.00 36.24 0.00 0.00 0.00 0.00
Total $3,450 $12169 $8,002 $11,211 0:00 935 382
Expenditures
Income $1,500 ($2,759) $1,5917 $3,153¢86 $11,660 $14,340 $14;893
(Loss)
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City (10,170) ,(32,158) (55,360) (44,678) (493) (214) 0.00
Attorney Fees
Income (Loss) ($8,670) ($34,917) ($53,763) ($41,524)' $11,166 $14,125 $14,893
after Atty
Fees •
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Attachment #3
RESOLUTION.AUTHORIZING PROGRAM.ADMINISTRATION FEES FOR THE
MOBILE HOME.PARK SPACE RENT PROGRAM FOR 2013
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WHEREAS, pursuant to Ordinance No. 1949 N.C.S., the City of Petaluma adopted a
Mobile 1-Tome Park Space Rent Stabilization Program;,and
WHEREAS, pursuant.to,said ordinance, the City Council is,authorized to adopt a Mobile
Home Park Space Rent Stabilization Program administration fee annually by resolution or
ordinance; and •
WHEREAS; the City Council desires to set said administration fee effective April 30,
2013.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of
Petaluma hereby:
1. Approves a fee in the,amount of sixty-five dollars ($65.00), effective as of April 30,
2013, as the mobile home park rent stabilization program administration fee ("Administration
Fee") for each mobile home space as defined in Ordinance No '1.949 N.C.S., including both
occupied and unoccupied mobile home spaces,in the owner'sln?obile home park except for those
spaces subject to a rental ,agreement in full compliance with the requirements of Civil Code
Sections 798.1 (a) and (b).
2. Directs that prior to April 30, 2013, each mobile home park owner shall receive an
invoice from the City of Petaluma.for the,Administration-Fee.
3. Directs that the City. Clerk of the City of Petaluma shall forward payments of the
Administration Fee to the clerk for administration of the mobile home park .rent•stabilization
ordinance, and shall issue to each mobile home park owner a receipt for payment of the
Adniinistration Fee.
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4. Directs,pursuant to Ordinance No. 1949 N.C.S., that any person owing money to the City
pursuant hereto shall be liable to an action brought in the.nanie of the City for the recovery of
such amount. A service fee equal to one and one-half percent (1 1/4%) per month will be charged
on all late payments of registration fees.
1830721.1
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