HomeMy WebLinkAboutAgenda Bill 5C 04/19/2010-~ALU~ .
a~,- ~ .~,
I.gg ~
DATE: .April 19, 2010
A~-ev~d.~Itevw# S.C
TO: 1EIonarable Mayor-and lYI'e.mbers of the'City Council through City Manager
FROM: John Brown, City Nlaiager
SUBJECT: Resolution Authorizing Program Administration Fees for the Mobile Home Park Space Rent
Stabilization Program.fore2010
RECOIVIIVIENDATION:
It is recommended thatthe City "Council Adopt the Attached Resolution Authorizing Program: Administration
Fees for the Mobile Home Park Space Rent Stabilization Program for 2010.
BACKGR®UND:
Petaluma Municipal Code Section 6:50.60 authorizes the City to collect an annual fee for administration of the
ordinance. Th'e ordinance states: that, "on or before Apri130` of each year and every subsequent year, each
mobile home. park. owner shall pay to the .City Clerk of the Ci y of Petaluma.a mobile home park rent
stabilization program administration, fee for each mobile home space as defined herein, including both occupied
and unoccupied mobile home spaces. in the owner's mobile home. park except for those spaces subject to a recital
agreement in full compliance. with the requi~ieinents of Civil Code Sections 79.98.17 (a) and (b)." Fifty percent
of the'fee can be passed through by~ the park owner to the tenant.
The City has athree-year agreement.(througB.June 30, 2012.) with the Sanoma .County Community
Development Commission (SCCDC) to administer our rent stabilization program.. SCCDC provides. a staff
person to process arbitration petitions and select qualified. arbitrators for.adminstratve Bearings. (SCCDC also
administers rent. stabilization programs for three other cities and the County.)
DISCUSSION:
Per Petaluma Munrcipal Codethe 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'240 spaces which are covered
under the ordinance.. A breakdown b~y park is attached as Attachment #1.
Agenda Review: - ~,
< , /~
Director ~ City Attorney ~ Finance Dire'ctor.Cty Manager
FINANCIAL IMPACTS:
The first year of the ordinance, 1995, the administration fee was ~$65/space/year. Over the years, staff
.recommended fee decreases based on the relatively 'low costs to ;administer the program and retain a reserve for
unanticipated legal fees. However, attorney fees (due mostly toSandalwood-related legal fees for arbitrations
and appeals) tripled in years 2007-2008 (see the Sources and Uses Chart, Attachment #2) and have continued to
grow each year. This year shows a predicted program loss of $41,524 with the year only half over. Because of
the growing program deficit, last year staff'recommended areturn to the original fee of $65.00 in order to
partially recoup the costs of the program.
Although the program is still short of a budget wherein revenues match expenditures, staff is recommending
that Council maintain tl~e $65.00 fee. Balancing the program budget would require aper-space increase to
$180.00, which would present a hardship for many mobile home. park residents. Were it not for the
aforementioned legal fees at Sandalwood, this city-wide program would be self-sustaining today as it was for
many years. Staff recommends that the balance of the costs of the program be covered, as in the past, out of the
PCDC low-mod housing fund.
After City Council adoption of the resolution authorizing the 2010 administrative fees, assessments will be sent
to all park owners by the Finance Department.
Total Cost of Program: $75,000
2010-11 Admin Fee-Revenue $15,600
($59,400)
Program Subsidy from Low/Mod Fund $59,400
Name of Account: _ Housing Fund Mobile Home Rent Stabilization
Account Number: 5110-51100-54130
Current Account Balance: ($41,525) as of 12/31/09 See Attachment #2
ATTACHMENTS
1. Rent Stabilization Ordinance Survey by Park
2. Sources and Uses Chart
3. Resolution
2
Name of Park
Capri
Leisure Lake
Little Woods
Pefalurna Estates
Royal Oaks
Sandalwood
Youngstown
Total Park Spaces
RENT ::®RDINANGE SUIZVEY BI',PARK'
Number of Spaces
69
1.34
78
215
94
178
102
870'
Spaces Under Ordinance
1
52 (9 vacancies)
77
2
30
50
28
240
Attachment #1
., ; >
3
Attachment #2
1Vloble Nome Rent Sta"bilzatori Program
Sources aril Uses Chart
Ap~12010
6130/200'5 6/30/2006 6/30/2007 6/3'0/2008 6/30/2009 12/31/2009
Revenues ~ $5;730.00 $5;550:00 $4,950.00 $9,400:00 $9,600.00 $14,365.00
Expenditures
Son. Co. Comm.
Dev '209.05 5,137.50 3,450.00 12,169,08 7,966.11 11,211..14
Son. Co.
Attorney 0.00 0:00 0.00 0.00 0.00 0.00
Miscellaneous 0.00 0:00 0.0,0 ~ 0.00 36.24 0.00
Total Expenditures $ 209.05 $5,137.50 $3,450.00 $12,1.69.08 $8,002.35 $11,211.14
Income OLoss) $5;52095 '$412:50 $1,500.00 ($2;759:08) $1,597.65 $3,153.86
Legal Costs (1.,306.50) (2,201.50) (10,.170.69) (32;1:58.19) (55,3.60:40) (44,678.56)
Income- (Loss)
after Legal Costs $4,21'4.4'5 ($1,789.00) ($8,670.69) ($34,917:27) ($53,762.75) ($41,524.70)
Attachment:#3 ~:
AUTHORIZING PROGRAM ADIVIINISTRAT-ION FEE'S FOR THE MOB'I~LE IIOME PARK SPACE
RENT STABILIZATION PROGRAM FOR 2010 ~ -
WHEREAS, pursuant to Ordinance No. 1949 N.C.S., the City of Petaluma adopted a Mobile Home Park Space
Rent Stabilization Program; and
W>EIEREAS, pursuant to said ordinance, the City Council' is authorized to adopt a Mobile Home Park Space
Rent Stabilization Program, administration fee by resolution or ordinance; and
WHEREAS, the City Council desires to set said administration fee herein; -
4..
NOW, THEREFORE, BE IT RESO>[;VEI) that on or before April 30; 2010 each mobile home park owner
shall receive an invoice from the C y of Petaluma for a mobile home park rent stabilization pr'o'gram '
administration fee in the sum of sixty-five dollars (565.00) for each .mobile home space as defined hereiri;
including both occupied and unoccupied mobile home spaces in the owner's mobile 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). The City Clerk of the City of Petaluma shall forward these funds to administer the mobile home park
rent stabilization ordinance. Further, the City Clerk of the City of Petaluma shall issue to each mobile home•
:~_>,~ ~.
park owner a receipt for payment of the fees required to be paid herein. Any person owing money to the city
under the provisions of this ordinance shall be liable to an action brought in the, name of the City for the
recovery of such amount. A service fee equal to one and one-half percent (1 %2%) per month will be charged on,
all late payments of registration fees under this ordinance.
201 Omobi lehorriestaffi'eport/h