HomeMy WebLinkAboutStaff Report 3.B 04/03/2017Agenda Item #3.B
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DATE: April 3, 2017
TO: Honorable Mayor and Members of the City Council Through City Manager
FROM: Sue Castellucci, Housing Administrato '-
SUBJECT: Resolution Authorizing Program Administration Fees for the Mobile Home Park
Space Rent Stabilization Program for 2017
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 2017.
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
30th 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 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 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, 2018) 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 four 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 -term lease holders at each park annually. The number of spaces from all
seven parks has decreased from 870 to 868 total spaces. The most recent survey identified 352
spaces which are covered under the City's rent control ordinance which is up 6 spaces from the
346 space last year. A breakdown by park is in Attachment #1.
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. It has always been the strategy to set the
administrative fee to cover administrative costs, and accumulate a balance to save toward future
unanticipated arbitration/legal costs. Over most of the twenty years the Ordinance has been in
effect, administrative costs were greater than the revenue, and until 2011 when the State
dissolved the Petaluma Community Development Commission (PCDC), the difference —
including legal costs and the costs of arbitration were covered by the PCDC's redevelopment
housing fund.
The program has been fortunate, that in very recent years, administrative fees have exceeded
program costs, and a small balance has been accumulated. At the end of Fiscal Year 2016 -2017,
the Mobilehome Rent Control fund will have an estimated balance of $66,000, $22,888 of which
is estimated to have been generated in 2016 -2017. This balance is available to cover future
unanticipated program costs, such as legal fees. Past experience with legal disputes cost well in
excess of this amount to resolve and it would be prudent to continue to slowly build this reserve
for future contingencies. Therefore, it is recommended that the administrative fee remain at $65
per space.
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. Accordingly, it
is recommended 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 potential
legal /arbitration costs that may be incurred in the future.
With City Council adoption of the resolution authorizing the 2017 administrative fees,
assessments will be sent to all park owners by the Finance Department.
ATTACHMENTS
1. Rent Stabilization Ordinance Survey by Park
2. Resolution
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Attachment #1
RENT ORDINANCE SURVEY BY PARK
Name of Park
Number of Spaces
Spaces Under
Ordinance
Average Rent per
SCCDC survey
Capri
69
0
$482.52/mo
Leisure Lake
134
70
$516.36/mo
Little Woods
77
77
$406.35/mo
Petaluma Estates
215
26
$667.24/mo
Royal Oaks
94
76
$683.47/mo
Sandalwood
177
31
$996.45/mo
Youngstown
102
72
$627.22/mo
(includes Water)
Total Park Spaces
868
352
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Attachment #2
RESOLUTION AUTHORIZING PROGRAM ADMINISTRATION FEES FOR THE
MOBILE HOME PARK SPACE RENT STABILIZATION PROGRAM FOR 2017
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,
2017.
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,
2017, 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 full compliance with the requirements of Civil Code
Sections 798.1 (a) and (b).
2. Directs that prior to April 30, 2017, 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 %2 %) per month will be charged
on all late payments of registration fees.
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