HomeMy WebLinkAboutStaff Report 3.C 04/06/2015ROq
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DATE: April 6, 2015
TO:
FROM:
SUBJECT:
AGENDA ITEM # 3.C.
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Honorable Mayor and Members of the City Council Through City Manager
Sue CastellLlcci, Housing Coordinator �lna, 6
Resolution Authorizing Program Administration Fees for the Mobile Home Park
Space Rent Stabilization Program for 2015
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 2015.
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°i of each year and every subsequent 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 hone 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 rental
agreement in frill 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 tour other
cities and the County.
DISCUSSION
In 1994, the first year of the Ordinance, the administration fee was $48.00 per space/per year
with approximately 124 spaces under rent control. The administration fee has ranged from
$48.00 to the current $65.00 per space per year. Staff requests updates on spaces covered by the
Ordinance versus long -terns lease holders at each park annually. The number of spaces from all
seven parks has decreased from 870 to 868 total spaces. However, the number of spaces under
Petaluma's rent control ordinance has increased significantly. This year it was determined that
there are 343 spaces, an increase of 26 spaces from last year, which are covered under the
Ordinance. A breakdown by park is attached as Attachment 91.
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. Over the twenty years that the Ordinance
has been in effect, the administrative costs have been greater than the revenue. Up until 2011,
any unanticipated legal/arbitration costs were covered by Petaluma's PCDC redevelopment
housing fund. In Attachment #2, the Ending Fund Balance shows that the fund has a negative
cash flow balance due to several arbitrations over the last ten years. The Attachment also
illustrates a steady reduction in the deficit since FY 2013/2014.
Due to the loss of redevelopment and the State Controller's Office clawback of our In Lieu
Housing find balances, we are reviewing Petaluma's housing strategy on how to balance our
current programs and services to serve the low income population in Petaluma. It has always
been the strategy to set the administrative fee to cover administrative costs, and accumulate a
balance to save toward fixture unanticipated arbitration/legal costs. In Fiscal Year 2016-2017,
the negative balance will be corrected and the Mobilehome Rent Control fund will begin to
accumulate fiords.
FINANCIAL IMPACTS
Since the Ordinance was enacted in 1994, Council has approved fee modifications based on the
costs to administer the program and retain a reserve for unanticipated legal fees. The current
administrative fee is needed to reduce the negative balance and to begin accumulating a reserve
beginning in Fiscal Year 2016-2017. Staff recommends that the administrative lee remain at
$65/space. This will allow the program to pay annual expenses and to start building a reserve
capable of covering any potential legal/arbitration costs that may be incurred in the future.
With City Council adoption of the resolution authorizing the 2015 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 .
Attachment #1
RENT ORDINANCE SURVEY BY PARI{
Name of Park
Number of Spaces
Spaces Under Ordinance
Capri
69
0
Leisure Lake
134
67
Little Woods
77
77
Petaluma Estates
215
17
Royal Oaks
94
73
Sandalwood
177
37
Youngstown
102
72
Total Park Spaces
868
343
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Attachment #2
MOBILE HOME RENT STABILIZATION PROGRAM
Sources and Uses
April 2015
4
2013/14
2014/15
2015/16
(est.)
Beg. Fund Balance
(70,348)
(50,678)
(35,570)
Revenues
$20,605
$22,295
$22,295
Expenditures
(935)
(5,497)
(3,000)
Income (Loss) for
$19,670
$15,108
$19,295
the year
Ending Fund
(50,678)
(35,570)
(16,275)
Balance
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Attachment #3
RESOLUTION AUTHORIZING PROGRAM ADMINISTRATION FEES FOR THE
MOBILE HOME PARI{ SPACE RENT STABILIZATION PROGRAM FOR 2015
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
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,
2015.
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,
2015, as the mobile home park rent stabilization program administration fee ("Administration
Fee") for each mobile home 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 fill compliance with the requirements of Civil Code
Sections 798.1 (a) and (b).
2. Directs that prior to April 30, 2015, each mobile home park owner shall receive an
invoice fi-om 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 Y2%) per month will be charged
on all late payments of registration tees.
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