HomeMy WebLinkAboutStaff Report 2.A 04/20/2009CITY OF PETALUMA, CALIFORNIA
AGENDA BILL
Agenda Title:
Resolution Authorizing Program Administration Fees for Mobile Hosie Park
Space Rent Stabilization Program for 2009
,April 20, 2009
Meeting Date:
April 20, 2009
Meeting Time: ❑ 3:00 PM
0 7:00 PM
Category: ❑ Presentation ❑ Consent Calendar ❑ Public Hearing ❑ Unfinished Business 0 New Business
Department
CDD
Cost of Proposal:
$50,000 (estimate)
Amount Budgeted:
$50,000
Director:
Mike Moore
Attachments to Agenda Packet Item.
#1. 5 -year Sources and Uses
#2. Rent Ordinance Survey by Park
#3. Resolution Authorizing Setting of Fees
ContactPerson:
Bonne Gaeble`r���
�J
Phone Number:
778-4484 (direct)
Account Number:
h00202010
Name of Fund:
Mobile Home Rent Stabilization
Summary Statement:
Per Chapter 6.50 of the Petaluma Municipal Code, the City Council is authorized to adopt a mobile home part:
space rent stabilization fee on an annual basis. The proceeds of this fee are to be utilized to cover any costs
associated with arbitration hearings that occur as a result of the City's ordinance. The administrative fees Have
fluctuated over the years dependent upon the arbitration and appeal activity, ranging from a fee of $65/rent
control space at the program onset (1994) to as low as $15/space in 1999-2002. In 2007, because of an increase
in the number of arbitrations, appeals and subsequent legal fees incurred at Sandalwood, Council approved a fee
increase to $50.00 per year/per space covered under the ordinance. Because this fee does not accomplish an
organizational goal to match program revenues with expenses to the extent possible (see Exhibit #1: sources and
uses), staff is recommending that Council re -invoke the original administrative fee of $65/space, thereby
lessening the revenue to expenditure gap. The still sizeable gap that remains will continue to be paid from the
City's Low -Mod housing fiind.
Recommended Citv Council Action/Suggested Motion:
Adopt Resolution Authorizing Program Administration fees for Mobile Hosie Park Space Rent Stabilization
Program for 2009.
Reviewed by Admin. Svcs. Dir:
Date:
Rev.#1
Reviewed by City Attornev:
Date:
Date Last Revised
Approved by City Manager:
Date:""''` .�
File:2008mobilehomereso/h
CITY OF PETALUMA, CALIFORNIA
APRIL 6, 2009
AGENDA REPORT
FOR
RESOLUTION AUTHORIZING PROGRAM ADMINISTRATION FEES FOR MOBILE
HOME PARK SPACE RENT STABILIZATION PROGRAM FOR 2009
1. RECOMMENDATION: Adopt a resolution authorizing program administration fees for
mobile home park space rent stabilization program for 2009.
2. BACKGROUND: SECTION 6.50.160 of the Petaluma Mluiicipal Code authorizes the City
to collect an annual fee for administration of the ordinance. The ordinance states that "on
or before April 30"' 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 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)."
The City has a three-year agreement with the Sonoma 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 administrative
hearings. (SCCDC also administers rent stabilization programs for three other cities and the
County.) Our agreement runs through June 30, 2009,
Fee Modification Recommendation: The first year of the ordinance, 1995, the
administration fee was $65/space/year. Based on annual expenditures, modifications have
been made over the years to respond to the changing costs of program administration and
legal fees. The cost to administer the program, mainly due to Sandalwood-rclated legal fees
for arbitrations and appeals, has escalated in the last year. As shown on Exhibit #1, the
program costs as of 6130108 were $44,327, causing a deficit of $34,827 for the fiscal year.
To date, the difference has been paid from the City's Low -Mod housing fund. Exhibit #2
shows that there are 199 spaces which are covered under the ordinance. In order to be
completely balanced, a fee increase to $160/space would be required and that could be an
onerous burden upon many of our mobile home residents. Therefore, staff is
recommending that the fee be increased to the original assessment of $65 per rent
control space to more closely address the revenue -expenditure gap.
The savings gleaned frons such an action would be approximately $3,000, an amount that
could be utilized by one of the community nonprofits to subsidize a low-income senior
rental (or another purpose Council may choose).
3. DISCUSSION: The Council may decide (1) to increase or decrease the annual fee; (2)
maintain the existing fee and allocate Low -Mod housing funds to cover the balance of
expenses.
7
4. FINANCIAL IMPACTS The rent stabilization program is included in the Housing Program
budget and does not impact the General Fund. The recommended administration fee of
$65/space, which is assessed against the park owners and the residents ori an equal basis,
will provide S 12, 900 in revenue and will be utilized to cover program expenses to the
extent possible. Expenses over and above that amount will continue to be budgeted in the
FY 2009-10 Low Mod Housing Fund.
(A Sources and Uses Chart is attached as Exhibit #1.)
3
EXHIBIT #1
3116120099:1g Akt
-
filen=e5'1nCCanli(W Il1LtilUielCKcellilaila'1Fli'1m0hllrnn:
I
(
- --
CrCS' OF' ALUNI& CA
MOBILE HOME RENT STABILIZATION PROGRAM
Revenue
4,209.75
3,570.00
5,990.00
1,920.00
1,875.0€)
1,785.00
2.805.00
5,310.001
5.790.00
5,550.00
4.950D0
9,411).0U
9,500.o0
apendiftires
So co Community De%mlop
1,040.00 563.00
1,925.011
30.00
60.00
5.9(,6.01
7.255.00
1167.63
209.05
5,13750
3,450.00
12,169.08
7966.11
Cay-Alimicy..
171.61 177.60
4,1167.00
375.00
502.75
006.50
Z201.50
10.170691
32,158.19
3124.25
So Cocounsel
--
0
Nfiscollmicous
184.36
3.36 I
-
5.09
10.03
(10.(181
-
-
-
36,24
'fn4dL"spenditures
1,459.13 1,2214.96
1,928.36
30.00
39.96
10,82-1,93
7,630.00
L3,670-38
1,515.55
7.339.00
13�670A,9
4,1,327 �27
- --- ------
-- 11,126.60
Revenue over Expendl lures
2.749.62 2315.0.1
.1,06L.64
I'890.00
1,809.91
1.215.04
(8,017,931
(132U.G01j
(7,880.33)
4,63-1J5
(2,389.60)l
(.1.220.69)
(34,827.27)
(11,1^_6.66)
4,799A 1 7,5�19.03
9.B91.07
13,95511
15.9-15.11
17,655.62
19.4-60--.66- —1
1,3K.731.
9.61i7.1
-
1. 182M ---i.2PMU
-927.80-
0,39289)
(36.224). Ifil
Ending Uance
7.519.03 9.89-1.07
13,955.71 j
15,845.71
17,655.62
19,400.66
11,352-73
9,062.73
1,182.35
512
16)
(47,346,76)
biT,Wul Ntoy
origbad ninount hilled tuid caljectjtd $10,750, Pcr13a=, rerlmdad 31.350 it, Little 'Waodg,
MA
0,110611113yii�l
G
J
RENT ORDINANCE SURVEY BY PARK
Name of Park
Nun-iber of Spaces
S-oaces Under Ordinance
Capri
69
1
Leisure Lake
134
41
Little Woods
78
75
Petaluma Estates
215
2
Royal Oaks
94
27
Sandalwood
178
54
Youngstown
102
21
Total Park Spaces
870
221
G
J
EXHIBIT #3
AUTHORIZING PROGRAM ADMINISTRATION FEES FOR THE MOBILE HOME
PARD SPACE RENT STABILIZATION PROGRAM FOR 2008
WHEREAS, pursuant to Chapter 6.50 of the Petaluma Municipal Code, the City Council
adopted a Mobile Home Park Space Rent Stabilization Program; and
WHEREAS, pursuant to Chapter 6.50, 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;
NOW, THEREFORE, BE IT RESOLVED that:
1. On or before April 30, 2009 each mobile home park owner shall pay to the City of
Petaluma, pursuant to an invoice mailed to each mobile home park owner from the
City of Pctaliuna, a mobile home park rent stabilization program administration fee in
the sum of fifty dollars ($50.00) for each mobile home space, 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 798.17 (a) and (b).
2. The City Clerk of the City of Petaluma shall forward these funds, pursuant to the
City's existing agreement with the Sonoma County Community Development
Con -emission, to administer the mobile home park rent stabilization ordinance.
3. 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 resolution 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
administration fees under this resolution.
2008mobilehomereso
6