HomeMy WebLinkAboutStaff Report 3.F 4/7/2014N
DATE: April 7, 2014
TO: Honorable Mayor and Members of the City Council Through City Manager
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FROM: Sue Castellucci, Housing Coordinatof�
SUBJECT: Resolution Authorizing Program Administration Fees for the Mobile Home Park
Space Rent Stabilization Program for 2014
RECOMMENDATION
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 2014.
BACKGROUND
Petaluma Municipal Code Section 6.50.60 (the "Ordinance") authorizes the City to collect an
annual fee for administration of the ordinance. The Ordinance states that "on or before April
30`x' of each year and every subsequent year, each mobile home park owner shall pay to the City
Cleric of the City 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 owners mobile home park except for those spaces subject to a rental
agreement in full compliance with the requirements 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 317 spaces which are covered under the Ordinance. A breakdown by park is
attached as Attachment #1.
Agenda Review:
City Attorney Finance
Manager "T��)_--
FINANCIAL IMPACTS
Since the Ordinance was enacted in 1995, Council has approved 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 $17,403 (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 to cover excess costs.
After City Council adoption of the resolution authorizing the 2014 administrative fees,
assessments will be sent to all park owners by the Finance Department.
1. Rent Stabilization Ordinance Survey by Park
2. Sources and Uses Chart
3. Resolution
Attachment #1
RENT ORDINANCE SURVEY BY PARK
Name of Park
Number of Spaces
Spaces Under Ordinance
Capri
69
0
Leisure Lake
134
65
Little Woods
77
77
Petaluma Estates
215
5
Royal Oaks
94
57
Sandalwood
177
37
Youngstown
102
76
Total Park Spaces
868
317
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Attachment 92
MOBILE HOME RENT STABILIZATION PROGRAM
Sources and Uses
April 2014
4
2008
2009
2010
2011
2012
2013
2014
Revenues
$9,400
$9,600
$14,365
$11,660
$15,275
$15,275
$20,605
Expenditures
Son. Co.
Comm. Dev
12,169
7,966
11,211
0
935
382
3,202
Son. Co.
Attorney
0.00
0.00
0.00
0
0.00
0.00
0
Misc.
0.00
36.24
0.00
0
0.00
0.00
0
Total
Expenditures
$12,169
$8,002
$11,211
0
$935
$382
$3,202
Income
(Loss)
($2,759)
$1,597
$3,154
$11,660
$14,340
$14,893
$17,403
City
Attorney Fees
(32,158)
(55,360)
(44,678)
(493)
(214)
0
0
Income (Loss)
after Atty
Fees
($34,917)
($53,763)
($41,524)
$11,166
$14,125
$14,893
$17,403
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Attachment #3
RESOLUTION AUTHORIZING PROGRAM ADMINISTRATION FEES FOR THE
MOBILE HOME PARK SPACE RENT STABILIZATION PROGRAM FOR 2014
WHEREAS, pursuant to Ordinance No. 1949 N.C.S., the City of Petaluma adopted a
Mobile Home Park Space Rent Stabilization Program; and
WHEREAS, pursuant to said ordinance, the City Council is authorized to adopt a Mobile
Hone 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,
2014.
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,
2014, as the mobile home park rent stabilization program administration fee ("Administration
Fee") for each mobile hone space as defined in Ordinance No. 1949 N.C.S., 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).
2. Directs that prior to April 30, 2014, 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
Administration Fee.
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 name of the City for the recovery of
such amount. A service fee equal to one and one-half percent (1'/%) per month will be charged
on all late payments of registration fees.
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