HomeMy WebLinkAboutAgenda Bill 3.B 04/04/2011DATE':
April 4, 2011
TO:
Honorable Mayor and Members of the City Council
FROM:
Bonne Gaebler, Housing Administrator I ^
VJ
SUBJECT: Resolution Authorizing Program Administration Fees, for the Mobile Home Park
Space Rent Stabilization Program.. for 2011
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 2011.
BACKGROUND
Petaluma,Municipat Code Section 6.50.,160 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 Clerk of the City
of Petaluma a mobile home.parkxent 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, 2012) with the Sonoma County.
Cornmunity Developir ent Commission (SCCDC) to administer our rent: stabilization program.
SCCDC provides a staff person to process iarbitrat ion petitions and. select qualified arbitrators for
admini'str`ative hearings, (SCCDC also administers rent stabilization programs for three other
cities and the County)
DISCUSSION
Per Petaluma. Municipal Code, the City Council is authorized W adopt a mobile home park space
rent stabilization fee on an annual basis. Staff requests updates ion spaces covered by the
ordinance; versus long -term, lease holders at each park annually. This year it was determined that
Agenda Review:
City Attorney ' Finance Director City Manager
there are 235 spaces which are covered under the ordinance. A breakdown by park is attached as
Attachment #1.
FINANCIAL .IMPACTS
In the first year of the ordinance, 1995, the administration fee was set at $65 /space /year. Over
the years, staff recommended fee modifications based on the costs to administer the program and
retain a reserve for legal fees relatedto administration, including arbitrations and court appeals
relating to rent increases. Last year (FY 2009 -10) Council restored the fee to its original $65 in
order to cover a portion of substantial attorney fees caused by°previous years' arbitrations and
appeals. Administration costs for legal fees have been relatively low in Fiscal Year 2010 -2011
(see the Sources and Uses Chart, Attachment #2), and this year shows a predicted Fiscal Year
2010 -2011 year -end balance of $11,660. However a substantial overall program deficit of
$140,800 remains from prior'years. Staff recommends that Council maintain the $65.00 fee in
order to gradually recapture a portion of those past losses and to eventually provide a reserve for
future administrative costs.
After City Council adoption.of the resolution authorizing the 2011 administrative fees,
assessments will be sent to all park owners by the Finance Department.
Estimated Annual Program Cost: $15,000
2011-12 Admin FeeRevenue $15,600
Existing, Program Deficit ($140,800)
(Subsidized by Low -Mod Housing Fund)
A'T'TACHMENTS
1. Rent Stabilization Ordinance Survey by Park
2. Sources and Uses Chart
3. Resolution
2011 mobi leHomestaffreport/h
2
Attachment #1
RENT ORDINANCE SURVEY BY PARIS
Name of Park Number of Spaces Spaces Under Ordinance
Capri
69
.1
Leisure Lake
134
55
Little Woods
78
76
Petaluma. Estates
215
2
Royal Oaks
94
29
Sandalwood
178
44
Youngstown
102
28
Total Park Spaces
870
235
3
MOBILE HOME RENT STABILIZATION PROGRAM
Sources grid Uses
April 2011
Attachment #2
11
6/30/2006
00/2007
6/30/2008
6/30/2009
12/31/2009
2/1/201.1
Revenues
$5,550.00 `
`$4,950.00
$9,400.00
$9,600.00
$14,365.00
$11,660.00
Expenditures
Son. Co.
Comm. Dev
5,137.50
3,450.00
12,169.08.
7,966,11
11,211.14
0.00
Son. Co.
Attorney
0.00
0.00.
0.00
0.00
0.00
0.00
Miscellaneous
0.00
0.00
0.00
36.24
0.00
0.00
Total
Expenditures
$5,137.50
$3450.00
$12,169.08
$8 9 002.35
$11,211.14'
0.06
Income (1,95s)
$412.50
'$1,500.00
($2,759.08)
$1,597.65
$3,153.86„
$11,660.00
City Attorney
Fees
(2
(1.0;170.69 -)
(32,- 158.19)
(55,360.40)-
(44,678.56)
(493.92)
Income (Loss)
after Atty Fees
($1,789.0'0)
($8
($34,917.27)
($53,762.75)
($41,524.70),
$11,166.08
11
Attachment #3
AUTHORIZING PROGRAM ADMINISTRATION.FEES FOR THE MOBILE HOME
PARK SPACE RENT STABILIZATION PROGRAM FOR 2011
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 Petaluma Municipal Code Section 6.50.160, a part of 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 the administration fee for Fiscal Year 201.1 -2012.
NOW, THEREFORE, BE IT RESOLVED that:
1. The administration fee for Fiscal Year 2011 -2012 is set at $65.00 per mobile home space
as defined herein;
2. On or before April 30, 2011 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 sixty -five. dollars ($65.00) 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 use these funds to administer the mobile home park rent stabilization
ordinance, in compliance with Petaluma Municipal Code, Chapter 6.50; and
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 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 wilt be charged on all late payments of registration fees
under this ordinance.
2010mobi 1 ehome staffreport/h 1614145.1
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