HomeMy WebLinkAboutStaff Report 6.B 04/03/2006CITY OF PETALUMA, CALIFORNIA
AGENDA BILL
Agenda Title: Meetine Date:
April 3, 2006
Resolution Authorizing Program Administration Fees for Mobile Meetine Time:
Home Park Space Rent Stabilization Program for 2006
. .
April 3, 2006
X 3:00 PM
❑ 7:00 PM
Cateeory (check one): ® Consent Calendar ❑ Public Hearing ❑ New Business
❑ Unfinished Business ❑ Presentation
Department: Director:Contact Person'7�` Phone Number:
CDD Mike Moore BonneGaebAg& A 778-4484 (direct line)
Cost of Pronosal: I \ `J ` U Account Number:
$5,000 (est.) 2130-P202010
Amount Budeeted: Name of Fund:
$5,000 Mobile Houle Rent Stabilization
Attachments to Aeenda Packet Item:
#1. 5 -year Sources and Uses
#2. Rent Ordinance Survey by Park
#3. Resolution Authorizing Setting of Fees
Summary Statement:
Per Ordinance No. 1949, the City Council is authorized to adopt a mobile home park space rent
stabilization fee on an annual basis. The staff recommendation is that the 2006 fee remains at $30.00 per
year/per space covered under the ordinance. This recommendation is based on a financial review which
shows that the current fee will allow the City to maintain a fund balance which will be adequate to cover
annual costs and retain a reserve for anticipated or unanticipated legal fees and/or arbitrations.
Recommended Citv Council Action/Sumsted Motion:
Adopt Resolution Authorizing Program Administration fees for Mobile Home Park Space Rent
Stabilization Program for 2006.
Reviewed by Finance Directort
111;jj Date:
Todav's Date:
March 8, 2006
Reviewed by City Attornev:
Date:
Qj �
Revision # and Date Revised:
Aimrpyyved by City Manaeer:
9�
Date:
File Code:
Mobhomstaff/d
CITY OF PETALUMA, CALIFORNIA
APRIL 3,2006
AGENDA REPORT
FOR
RESOLUTION AUTHORIZING PROGRAM ADMINISTRATION FEES FOR MOBILE
HOME PARK SPACE RENT STABILIZATION PROGRAM FOR 2006
EXECUTIVE SUMMARY: Per Ordinance No. 1949, the City Council is authorized to adopt
a mobile home park space rent stabilization fee on an annual basis. The staff
recommendation is that the 2006 fee remains at $30.00 per year/per space covered under
the ordinance. This recommendation is based on a financial review which shows that the
current fee will allow the City to maintain a fund balance which will be adequate to cover
annual costs and retain a reserve for anticipated or unanticipated legal fees and/or
arbitrations.
2. BACKGROUND: Section 6.50.160 of the 1994 City of Petaluma Rent Stabilization
Ordinance authorizes the City to collect an annual fee for administration of the ordinance.
The ordinance states that "on or before April 30`x' 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)."
The City has a five-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 terminates in June of 2006.
The first year of the ordinance, 1995, the administration fee was $65/space/year. Based
on actual amoral expenditures, staff has recommended modifications over the years to
respond to the changing annual costs to administer the program and retain a reserve for
unanticipated legal fees.
Staff requests updates on spaces covered by the ordinance versus long-term lease holders
at each park annually. This year it was determined that there are 165 spaces which are
covered tinder the ordinance. A breakdown by park is attached as Exhibit #2.
ALTERNATIVES: The Council may decide to increase or decrease the annual fee.
4. FINANCIAL IMPACTS The rent stabilization program is included in the Housing Program
budget. The purpose of the administration fee, which is assessed against the park owners
and the residents on an equal basis, is to cover ongoing costs of monitoring compliance
with the Mobile Home Rent Stabilization ordinance and to provide a program reserve for
unanticipated legal fees for arbitration of disputes.
(A 5 -year Sources and Uses Chart is attached as Exhibit #1.)
CONCLUSION: After City Council adoption of the resolution authorizing the 2006
administrative fees, assessments will be sent to all park owners by the Finance
Department. p2,
18enwne' s?nccnuniml\ewJe\exeei\honswg\mohhmne
Revenue
Expenditures
So Co Community Develop
City Attorney
So Co Counsel
Mlisuellnnuous
Total Expenditures
Revenue over Expenditures
Beginning Bnlnnce
Ending Balnnee
CITY OF PETALUMA, CA
MOBILE HOME RENT STABBJZATION PROGRAM(
Fund Bnlnnce ns of 12/31/05
6/30/1996 6/30/1997 6/30/1998 6130/1999 6/30/2000 6/30/2001 6/30/2002
4208.75 3570 5,990.00 1,920.00 1,875.00 1,785.00 2,805.00
1,040.00
863.00
371,63
177.60
47.50
7,255.00
2,167.63
184.36
1,459.13
1,224.96
2,749.62
2,345.04
4,799.41
7,549.03
7,549.03
9,894.07
1/25/20061:44 PM
6/30/2003 6/30/2004 6/30/2005 12/31/2005
5,310.00 5,790.00 5,550.00 -
1,925.00
30.00
60.00
5,966.01
7,255.00
2,167.63
209.05
262.50
4,867.00
375.00
11,502.75
1,306.511
1201.181
29.88
3.36
5.09
10.08
(10.08)
1,928.36
30,00
65.09
39.96
10,822.93
7,630.00
13,670.38
1,515.55
1,463.50
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)
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
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
EXIIIBIT #2
RENT ORDINANCE SURVEY BY PARR
Name of Park
Number of Spaces
Spaces Under Ordinance
2005 2006
Capri
69
1 1
Leisure Lake
134
51 37
Little Woods
76
4 4
Petaluma Estates
215
3 3
Royal Oaks
94
25 28
Sandalwood
178
72 68
Youngstown
102
29 24
Total Park Spaces
868
185 165
EXHIBIT #3
AUTHORIZING PROGRAM ADMINISTRATION FEES FOR THE MOBILE HOME
PARK SPACE RENT STABILIZATION PROGRAM FOR 2006
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 by resolution or ordinance; and
WHEREAS, the City Council desires to set said administration fee herein;
NOW, THEREFORE, BE IT RESOLVED that on or before April 30, 2006 each mobile home
park owner shall receive an invoice from the City of Petaluma for a mobile home park rent
stabilization program administration fee in the sum of thirty dollars ($30.00) 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 798.1 (a) and (b). The City Clerk of
the City of Petaluma shall forward these funds to administer the mobile home park rent
stabilization ordinance. Further, the City Cleric 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 ordinance 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 registration fees under
this ordinance.
mobbomstaff