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HomeMy WebLinkAboutStaff Report 6.A 04/03/2006CITY OF PETALUMA, CALIFORNIA AGENDA BILL Agenda Title: Discussion And Possible Action To Adopt A Resolution To Renew An Agreement Between The City Of Petaluma And The Sonoma County Community Development Commission To Administer The Mobile Home Rent Stabilization Program. Meeting Date: April 3, 2006 6.A April 3, 2006 Meeting Time: ® 3:00 PM ❑ 7:00 PM Category (check one): ❑ Consent Calendar ❑ Public Hearing ® New Business ❑ Unfinished Business ❑ Presentation Denartment: Director: n�� Contact Person: Phone Number: Community Mike Moor Ij Bonne Gae er_VV 778-4555 Development Cost of Proaosal: Account Number: Administration $75/hour (not -to -exceed 108 hours) 2130-P202010-54130 County Counsel $160/hour (not -to -exceed 90 hours) Name of Fund: Anticipated Expenditures $3,000 (through 2006-2007) Mobile Home Rent Stabilization Amount Budgeted $3,750 Attachments to Agenda Packet Item: #1. Multi-year revenue and Expenditure Spreadsheet #2. Draft Resolution with Agreement (Attachment A to Resolution) Summary Statement: The City of Petaluma initially entered into an agreement with the Sonoma County Community Development Commission (The Commission) in 1994 and that agreement was renewed in 1999 and 2003. The existing agreement will expire in June of 2006 and the proposed updated agreement would expire in June of 2009. The Commission provides day-to-day information and referral services to the residents of Petaluma's mobile home communities regarding our rent stabilization ordinance and provides all services required to process arbitration petitions, including the selection of qualified arbitrators for administrative hearings. Recommended Citv Council Action/Suggested Motion: Adopt A Resolution To Renew An Agreement Between The City Of Petaluma And The Sonoma County Community Development Commission To Administer The Mobile Home Rent Stabilization Program. Reviewed by Admin. Svcs. Dir: n Todav's Date: March 3, 2006 Reviewed by City Attornev: Date: Revision # ari 6 to Revised: Arm roved by City Manager: � 1// Date: File Code: 2006mobhomeagmt/d CITY OF PETALUMA, CALIFORNIA April 3, 2006 AGENDA REPORT FOR Discussion And Possible Action To Adopt A Resolution To Renew An Agreement Between The City Of Petaluma And The Sonoma County Community Development Commission To Administer The Mobile Home Rent Stabilization Program 1. EXECUTIVE SUMMARY: The City of Petaluma initially entered into an agreement with the Sonoma County Community Development Commission (the Commission) in 1994 and that agreement was renewed in 1999 and 2003. The existing agreement will expire in June 2006 and the proposed updated agreement would expire in June 2009. The Commission provides day-to-day information and referral services to the residents of Petaluma's mobile home communities regarding our rent stabilization ordinance and provides all services required to process arbitrations petitions, including the selection of qualified arbitrators for administrative hearings. 2. BACKGROUND: The City Council adopted the Mobile Home Rent Stabilization Ordinance in 1994. At that time, the City entered into a contract with the Commission to administer the program. As part of that agreement, Commission staff fields questions, interprets the ordinance language for park residents, owners, and managers, calculates the allowable annual rent increases, and performs other related services. ALTERNATIVES: Approve the attached agreement. Direct staff to develop an alternative agreement. 4. FINANCIAL IMPACTS: The rent stabilization program is included in the Housing Budget. As shown on Exhibit #1, the average annual costs to administer this program have returned to a minimal amount following the Sandalwood arbitration and related expenses. The cost to the Commission during this fiscal year is estimated to be approximately $3,000, with ample revenues to cover those anticipated expenses. The actual cost of the program and of this contract is funded by the rent stabilization administrative fee which is assessed against the park owners and the residents on an equal basis. Council will review and act on that staff report in conjunction with this item. The City is billed by the Commission for services rendered on a "time and materials" basis. Where arbitrators are deemed to be necessary, they are paid by the Commission and reimbursed by the City for the actual expenses incurred. 5. CONCLUSION: The Commission administers this program in an effective and efficient manner and is responsive to all City staff requests and questions. E. OUTCOMES OR PERFORMANCE MEASUREMENTS THAT WILL IDENTIFY SUCCESS OR COMPLETION: The Mobile Home Rent Stabilization program will continue to be administered in a fair and efficient manner and the City will continue to receive expert advice and counsel. RECOMMENDATION: Adopt the resolution approving the agreement and direct the City manager to sign all appropriate documents. Mobhmagmt/d 1/25/20061:44 PM &nerve..Wccmntliwt\cm4e\excelWmuv¢Winbhnme Revenue Expenditures So Cc Community Develop City Attorney So Cc Counsel Miscellaneous Total Expenditures Revenue over Expenditures Beginning Balance Ending Rnlnner CITY OF PETALUN" CA MOBILE HOME RENT STABB.IZATION PROGRAivI Fund Bulunce as of 12/31/05 6/30/1996 6/30/1997 6/30/1998 6/30/1999 6/30/2000 6/30/2001 6/30/2002 6/30/2003 6/30/2004 6/30/2005 12/31/2005 4208.75 3570 5,990.00 1,920.00 1,875.00 1,785.00 2,805.00 5,310.00 5,790.00 5,550.00 - 1,040.00 863.00 1,925.00 30.00 60.00 5,966.01 7,255.00 2,167.63 209.05 262.50 371.63 177.60 4,867.00 375.00 11,502.75 1,306.50 1201.00 47.50 29.88 184.36 3.36 5.09 10.08 (10.08) 1,459.13 1,224.96 1,928.36 '30.00 65.09 39.96 10,822.93 7,630.00 13,670,38 1,51555 1,463.50 2,749.62 2,345.04 4,061.64 1,890.00 1,809.91 1,745.04 (8,017.93) (2,320.00) (7,880.38) 4,034.45 (1,463.50) 4,799.41 7,549.03 9,894.07 13,955.71 15,845.71 17,655.62 19,400.66 11.382.73 9,062.73 1,182.35 5,216.80 7,549.03 9,894.07 13,955.71 15,845.71 17,655.62 19,400.66 11,382.73 9,062.73 1,182.35 5,216.80 3,753.30 EXHIBIT #2 RESOLUTION APPROVING THE AGREEMENT BETWEEN THE CITY OF PETALUMA AND THE SONOMA COUNTY COMMUNITY DEVELOPMENT COMMISISON FOR THE ADMINISTRATION OF THE PETALUMA MOBILE HOME RENT STABILIZATION ORDINANCE WHEREAS the City of Petaluma (the City) has adopted a 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 (the Commission) to administer that ordinance; and WHEREAS that agreement will expire in June 2006; and WHEREAS the City wishes to. contract with the Commission to continue to administer the ordinance for an additional term (through June 2009); NOW THEREFORE BE IT RESOLVED that the Petaluma City Council approves the Agreement (Attachment A to this resolution) and authorizes the City Manager or his designee to sign all necessary documents. 6 ATTACHMENT 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 March 2006, 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 expires on June 30, 2006; 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 Commission Mobilehome Park Space Rent Stabilization Ordinance (attached hereto and incorporated herein by reference as Exhibit "B"). Said services shall include day-to-day response to citizen inquiries and providing a clerk to process arbitration petitions and qualified arbitrators for administrative hearings. The City expressly makes Commission and its staff agents of City for purposes of applying and interpreting the comparable rent stabilization ordinance of City, and agrees to be bound by the judgments of its agents in matters of interpretation and application of said City law. Where differences between the City ordinance and the Commission ordinance exist, Commission staff will confer with City staff to agree in the methodology to be used in administering the differences in the law. Commission shall be free not to administer laws of City which it deems unlawful or likely to incur Commission liability not within the scope of the indemnification agreement set forth below. 2. INDEMNIFICATION AND HOLD HARMLESS: City holds harmless the Commission, its agents, officers, and employees, from any and all claims or actions of any kind arising out of or related to the administration of this contract and for all actions, rulings, legal judgments and interpretations made about City's ordinance in administering City's program, and agrees to indemnify Commission for all costs, expenses and/or damage awards which arise in the administration and/or application of the ordinance, including, but not limited to, interpretation of the terms, scope and purpose of the ordinance; provided, however, that Commission shall perform all such services in the manner and according to the standards observed by a competent practitioner in the administration and application of rent stabilization ordinance. 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 Commission Community Development Commission 1440 Guerneville Road Santa Rosa CA 95403 CITY: Bonne Gaebler, Housing Administrator City of Petaluma 11 English St. Petaluma CA 94952 4. Commission will be paid for all services rendered. Commission will be paid at the rate of $75.00 per hour for services rendered in the administration of the City mobilehome rent stabilization ordinance. Annual services are anticipated not to exceed one hundred eight (108) hours per year. Invoices shall be sent to the City periodically. Services in excess of one hundred eight (108) 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. 6. INCIDENTAL LEGAL SERVICES RELATED TO ADMINISTRATION OF CITY PROGRAM: City shall pay the Commission at the rate of $160.00 per hour for County Counsel services provided to City in counseling Commission staff regarding the administration of City's rent stabilization program. Commission Counsel shall not be responsible for recommending or suggesting modifications of the language of City's ordinance. Annual services from Commission Counsel is not anticipated to exceed Ninety (90) hours per year. 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. 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, 2006 and end June 30, 2009. The rates under section 4 and 6 may be amended annually effective July 1 st. 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 or extension thereon. 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 Community Development 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. Date: CITY OF PETALUMA: By: City Manager Dated: COMMISSION: By: for the County of Sonoma and the Sonoma County Community Development Commission Dated: APPROVED AS TO FORM: By: County Counsel