HomeMy WebLinkAboutStaff Report 3.B 06/15/2015DATE: June 15, 2015
Agenda Item #3.B
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TO: Honorable Mayor and Members of the City Council through City Manager
FROM: Sue Castellucci, Housing Coordinato
SUBJECT: Resolution To Renew An Agreement Between The City of Petaluma and the
Sonoma County Community Development Commission to Administer The
Mobile Home Rent Stabilization Ordinance and Authorizing the City Manager to
Execute all Necessary Documents.
RECOMMENDATION
It is recommended that the City Council adopt the attached Resolution Approving Renewal of an
Agreement Between the City of Petaluma and the Sonoma County Community Development
Commission to Administer The Mobile Home Rent Stabilization Ordinance and Authorizing the
City Manager to Execute all Necessary Documents.
BACKGROUND
The City adopted the Mobile Home Rent Stabilization Ordinance in 1994. At that time, the City
entered into a contract, with subsequent renewals, with the Sonoma County Community
Development Commission ( SCCDC) to administer the program. As part of that agreement,
SCCDC staff answers questions, interprets the ordinance language for park residents, owners and
managers; calculates the allowable annual rent increases; coordinates any arbitrations; and
performs other related services.
The administrative functions performed by the SCCDC are required by the City's ordinance and
there are no alternative providers available.
DISCUSSION
The existing agreement with the county will expire on June 30, 2015 and the updated 2015 -2018
agreement is presented for consideration and approval. There have been two changes to the
agreement from the current one with the Sonoma County Community Development
Commission. Those changes are as follows:
1. Paragraph #4 - Services for the Commission will be increased from $85.00 an hour to
$95.00 an hour.
2. Paragraph #6 — New language has been added regarding incidental legal services relating
to the administration of the City program. The City Attorney's office added the
following language to the first sentence. "..... provided the City has been notified in
writing that the Commission is seeking the services of County Counsel and the City has
24 hours to notify the Commission that the City Attorney will handle the issue through
their office. The purpose of notifying the City is so the City can elect to involve its City
Attorney in place of Commission Counsel." The following sentence was deleted "If
services necessary to administer said program appear to exceed this estimate, City may
elect to involve its City Attorney in place of Commission Counsel."
FINANCIAL IMPACTS
This agenda item includes only the cost to the City for program administration; not legal costs
attributed to arbitrations. The estimated cost of the program administration over the three years
of the 2012 -2015 agreement was $2,343 annually which included arbitrations that happened
during that time period. The administrative fee that is collected for this program is
approximately $20,000 per year which covers that cost. The current administration fee is needed
to reduce the negative balance in the fund and to start accumulating a reserve which will happen
in FY 2017 -2018.
ATTACHMENTS
1. Resolution
2. Exhibit A of the Resolution
2
ATTACHMENT #1
RESOLUTION APPROVING RENEWAL OF AN AGREEMETN BETWEEN
THE CITY OF PETALUMA AND THE SONOMA COUNTY COMMUNITY
DEVELOPMENT COMMISSION (SCCDC) TO ADMINISTER THE MOBILE HOME
RENT STABILIZATION ORDINANCE AND AUTHORIZING THE CITY MANAGER
TO EXECUTE ALL NECESSARY DOCUMENTS
WHEREAS, the City of Petaluma has an adopted Mobile Home Rent Stabilization
Ordinance for mobile home parks in the community; and
WHEREAS, the City has entered into an agreement with the Sonoma County
Community Development Commission (SCCDC) to administer that ordinance; and
WHEREAS, that agreement is due for renewal for another three -year term; and
WHEREAS, the City wishes to continue to contract with the SCCDC to administer the
Ordinance for the period 2015 -2018.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of
Petaluma hereby approves the Agreement (Attached as Exhibit A to this Resolution) and
authorizes the City Manager or his designee to sign all necessary documents in connection
herewith.
ATTACHMENT #2
EXHIBIT A
AGREEMENT
BETWEEN THE CITY OF PETALUMA AND
THE SONOMA COUNTY COMMUNITY DEVELOPMENT COMMISSION
FOR ADMINISTRATION OF PETALUMA MOBILEHOME RENT STABILIZATION
PROGRAM
AND HOLD HARMLESS, INDEMNIFICATION AND DEFENSE
AGREEMENT
THIS CONTRACT, made this day of 2015, by and between the Sonoma
County Commission Community Development Commission, hereinafter called "Commission,"
and City of Petaluma, hereinafter called "City."
WHEREAS, City has adopted a rent stabilization ordinance and program for mobilehome
parks within City modeled upon one adopted by the Sonoma County Commission Board of
Supervisors; and
WHEREAS, the current agreement between the Commission and City expired on June
30, 2015; and
WHEREAS, City desires to have Commission continue to administer said program
within the City boundaries, and Commission has expertise and staff to continue such services.
NOW, THEREFORE, in consideration of the mutual covenants contained herein, the
parties hereto agree as follows:
1. SCOPE OF SERVICE: Commission shall administer the mobilehome rent
stabilization ordinance of City (attached hereto and incorporated herein by reference as Exhibit
"A ") in a like manner to the comparable Sonoma County Mobilehome Park Space Rent
Stabilization Ordinance. Said administrative services shall include (1) providing day -to -day
responses to citizen inquiries regarding the City ordinance; (2) providing administrative services
to process arbitration petitions; (3) locating and retaining arbitrators for administrative hearings
under the City ordinance, who have certified to the Commission that they meet the
Commission's selection criteria; and (4) arranging a location for administrative hearings and
other meetings required by the City ordinance. The City understands and agrees that the
Commission and its staff may be required to apply and interpret the rent stabilization ordinance
of City in connection with such services, and agrees that Commission shall have no liability for
L,
any claim arising from Commission's good faith interpretation and application of the ordinance,
so long as Commission uses reasonable efforts to consult with and keep City informed regarding
such interpretation and application. If requested by Commission, City staff will promptly
provide guidance to Commission regarding issues arising under the City ordinance; however,
nothing in this Agreement shall require Commission to request such guidance. Commission
shall not be required to make determinations under the City ordinance with respect to the
timeliness of petitions, the adequacy of financial information provided by parties, and similar
issues if such issues are disputed, it being understood and agreed that such questions may be
determined by the arbitrator. Nothing in this Agreement shall require Commission staff to take
any action it deems, in its reasonable sole judgment, unlawful or likely to result in liability to
Commission.
2. INDEMNIFICATION AND DEFENSE: City acknowledges that Commission's
performance of services under this Agreement may give rise to claims and litigation against
Commission or its employees, officers, or agents by mobilehome park owners or residents, and
that such claims and litigation may, for tactical or other reasons, allege negligence or intentional
misconduct on the part of Commission or its employees, officers, or agents. Notwithstanding the
nature of the claims, liabilities, actions, or litigation asserted or alleged against Commission or
its employees, officers, or agents, City agrees to indemnify, defend, and hold harmless
Commission, and its agents (including arbitrators retained by Commission under this
Agreement), officers, and employees, from and against any and all claims, liabilities, actions, or
litigation of any kind whatsoever arising out of or related to Commission's performance of
services under this Agreement ( "Claims "), to the maximum extent permitted by law. In
connection with the foregoing, City's obligation to indemnify and defend Commission shall exist
unless and until City establishes, by clear and convincing evidence, that Commission's
performance of services fell significantly below the standards applicable to providers of
administrative services for a rent stabilization program. City shall defend Commission at City's
expense with counsel selected by City, subject to Commission's approval of counsel, which
approval shall not be unreasonably withheld. In addition to City's obligation to defend
Commission as provided above, City shall have an obligation to provide or approve separate
counsel to defend Commission, at City's expense, only in the event of an identified conflict of
interest between City and Commission.
City understands and acknowledges that the City's agreement to indemnify and defend
Commission against all Claims pursuant to this Section 2 was a material inducement for
Commission to enter into this Agreement.
3. TERMINATION: Either party hereto may terminate this agreement upon thirty
days notice of the intent to terminate this agreement, with service of said notice being made as
follows:
COMMISSION:
Kathleen H. Kane, Executive Director
Sonoma County Community Development Commission
1440 Guerneville Road
Santa Rosa CA 95403
CITY:
John C. Brown, City Manager
City of Petaluma
11 English Street
Petaluma, CA 94952
4. Commission will be paid for all services rendered. Commission will be paid at
the rate of $95.00 per hour for services rendered in the administration of the City mobilehome
rent stabilization ordinance. Annual services are anticipated not to exceed eighty (80) hours per
year. Invoices shall be sent to the City periodically. Services in excess of eighty (80) hours must
be negotiated and the subject matter of a separate written modification of this contract. Where
arbitrators are deemed to be necessary, they shall be paid by Commission and reimbursed by
City for actual amount incurred.
5. SERVICES LIMITED TO ADMINISTRATION: The Ordinance policy, findings
and/or language adopted by City is solely the responsibility of City. Commission shall not be
expected to defend said policy, findings and /or language or litigate cases which challenge the
law's facial validity except as may hereafter be agreed by separate written modification of this
contract. Commission shall not be expected to take any affirmative action to enforce the City
ordinance or to enforce the terms of any arbitration decision.
6. INCIDENTAL LEGAL SERVICES RELATED TO ADMINISTRATION OF
CITY PROGRAM: City shall pay the Commission at the rate of $223.00 per hour for County
Counsel services provided to City in counseling Commission staff regarding the administration
of City's rent stabilization program, provided the City has been notified in writing that the
Commission is seeking the services of County Counsel and the City has 24 hours to notify the
Commission that the City Attorney will handle the issue through their office.. The purpose of
notifying the City is so the City can elect to involve its City Attorney in place of Commission
Counsel. Commission Counsel shall not be responsible for recommending or suggesting
modifications of the language of City's ordinance. City agrees that if requested it will promptly
consult with Commission Counsel on any issue relating to the City ordinance, any arbitration
reel
proceeding requested under the City ordinance, or any other issue relating to the performance of
services by Commission under this Agreement. Annual services from Commission Counsel are
not anticipated to exceed Ninety (90) hours per year. Additional legal services in excess of
Ninety (90) hours per year must be negotiated and the subject matter of a separate written
modification of this contract.
7. NO INTENDED THIRD PARTY BENEFICIARIES: The parties hereto agree
and acknowledge that this contract does not provide for any intended third party beneficiaries,
and no suit against either party may be based upon such a claim. This agreement shall be
enforceable only by the parties hereto.
8. TERM AND RENEWAL: The term of the agreement shall commence July 1,
2015 and end June 30, 2018. The rates under section 4 and 6 may be amended annually effective
July 1 st to reflect the actual cost to Commission of providing services.
9. RECORDS: Except for materials that may be subject to the attorney - client
privilege, records maintained by the Commission in the administration of City's rent stabilization
program are City's. All such documents shall be returned to City upon the expiration of this
agreement.
10. AMENDMENTS TO CITY RENT STABILIZATION ORDINANCE: Any and
all changes or proposed changes to the City rent stabilization ordinance shall be promptly
communicated to the mobilehome specialist at the Commission with sufficient notice to
accommodate administrative adjustments that may become necessary to implement the change or
changes in the City ordinance.
11. MERGER: This is intended both as the final expression of the agreement
between the parties with respect to the included terms, and as a complete and exclusive statement
of the terms of agreement, pursuant to Code of Civil Procedure Section 1856. No modification
of this agreement shall be effective unless and until such modification is evidenced by a writing
signed by both parties.
IN WITNESS WHEREOF THE PARTIES HAVE CAUSED THIS INSTRUMENT TO
BE DULY EXECUTED.
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Date:
Dated:
CITY OF PETALUMA:
By:
City Manager
APPROVED AS TO FORM:
By:
City Attorney
COMMISSION:
By:
Executive Director
APPROVED AS TO FORM:
By:
County Counsel