HomeMy WebLinkAboutStaff Report 3.G 04/01/2019L
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DATE: April 1, 2019
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FROM:
Honorable Mayor and Members of the City Council through City Manager
Sue Castellucci, Housing Administrato u -j- '^
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SUBJECT: Resolution to Enter into An Agreement Between The City of Petaluma and the
Sonoma County Community Development Commission to Administer The
Mobile Home Rent Stabilization Ordinance and Authorizing the City Manager to
Execute all Necessary Documents.
RECOMMENDATION
It is recommended that the City Council the attached Resolution Approving Entering into an
Agreement Between the City of Petaluma and the Sonoma County Community Development
Commission to Administer the Mobile Home Rent Stabilization Ordinance and Authorizing the
City Manager to Execute all Necessary Documents.
BACKGROUND
The City adopted the Mobile Home Rent Stabilization Ordinance in 1994. At that time, the City
entered into a contract, with subsequent renewals, with the Sonoma County Community
Development Commission (SCCDC) to administer the program. As part of that agreement,
SCCDC staff answers questions, interprets the ordinance language for park residents, owners and
managers; calculates the allowable annual rent increases; coordinates any arbitrations; and
performs other related services.
The administrative functions performed by the SCCDC are required by the City's ordinance and
there are no alternative providers available.
DISCUSSION
Our prior agreement with the County expired on June 30, 2018. At that time, the SCCDC was
proposing to make significant changes to their ordinance that governs mobile home parks
throughout the unincorporated county. City staff administers the mobile home rent stabilization
program by responding to mobile homeowners and citizens questions and concerns about the
program. The SCCDC coordinates any arbitrations as well as sending out notices of the annual
C.P.I. increases. The draft agreement with the City Attorney's comments was sent to the
SCCDC on March 5, 2019. The SCCDC accepted the City's changes on March 12, 2019. A
revised three-year agreement is presented for consideration and approval. There have been four
changes to the agreement from the current one with the Sonoma County Community
Development Commission. Those changes are as follows:
1. Section #1(3) — Scope - The proposed change is to facilitate the arbitrations using the
County of Sonoma's Permit Sonoma Administrative Hearing Officer program instead of
retaining and locating separate arbitrators for the arbitrations.
2. Section #4 - Services for the Commission will be increased from $95.00 an hour to
$120.00 an hour. The Sonoma County Community Development Commission has
increased their fees to cover their staff costs. The increase in the hourly rate for SCCDC
staff would be covered by our current $65.00 administrative fee.
3. Section #6 — Services for County Counsel will be increased from $223.00 an hour to
$256.00 an hour. Services for County Counsel totaled approximately 18 hours over the
prior three-year agreement. The increase in the hourly charge would not create a need to
increase the administrative fee.
4. Section #8 — Term and Renewal — The tern of the agreement is from June 1, 2019
through July 1, 2022. For any increases during the tern of the agreement, the following
language has been added: "such new rates will be provided to the City, in writing, prior to
implementation."
FINANCIAL IMPACTS
The $65.00 administrative fee for each space rent in our mobile home rent stabilization program
brings in approximately $23,900 annually. The fee is collected from the park owners and the
mobile homeowners, who each pay 50% of the annual fee. The 2018-2019 budget costs for this
program are $16,500, which cover $13,500 for City staff time and $3,000 of county
administrative costs. Historically, the costs of the administrative agreement with the SCCDC
were approximately $9,000 over the three-year period. Currently, there is a balance of $78,286
in the Mobile Home fund.
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ATTACHMENTS
1. Resolution
2. Exhibit A of the Resolution
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ATTACHMENT #1
RESOLUTION APPROVING ENTERING INTO AN AGREEMETN BETWEEN
THE CITY OF PETALUMA AND THE SONOMA COUNTY COMMUNITY
DEVELOPMENT COMMISSION (SCCDC) TO ADMINISTER THE MOBILE HOME
RENT STABILIZATION ORDINANCE AND AUTHORIZING THE CITY MANAGER
TO EXECUTE ALL NECESSARY DOCUMENTS
WHEREAS, the City of Petaluma adopted Mobile Home Rent Stabilization Ordinance
for mobile home parks in the community on May 4, 1994, Ordinance No. 1949 N.C.S.; and
WHEREAS, the City has entered into an agreement with the Sonoma County
Community Development Commission (SCCDC) to administer that ordinance; and
WHEREAS, that agreement had expired on June 30, 2018 and City wishes to continue to
contract with the SCCDC to administer the Ordinance for the period June 1, 2019 — July 1, 2022;
and
WHEREAS, the scope of services shall include (1) providing day-to-day responses to
citizen inquiries regarding the City ordinance; (2) providing administrative services to process
petitions for rent increase disputes; (3) facilitating administrative hearings through the County of
Sonoma, Permit Sonoma Administrative Hearing Officer program through completion of each
hearing; and (4) arranging a location for administrative hearings and other meetings required by
the City ordinance.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of
Petaluma hereby approves the Agreement (Attached as Exhibit A to this Resolution) and
authorizes the City Manager or his designee to sign all necessary documents in connection
herewith.
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ATTACHMENT #2
EXHIBIT 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 2019, by and between the Sonoma
County Community Development Commission, hereinafter called "Commission," and the City of
Petaluma, hereinafter called "City."
WHEREAS, City has adopted a rent stabilization ordinance, at Chapter 6.50 of the
Petaluma Municipal Code, and program for mobilehome parks within the City modeled upon the
one adopted by the Sonoma County Commission Board of Supervisors; and
WHEREAS, the current agreement between the Commission and City expired on June
30, 2018; 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:
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 manner comparable to the Sonoma County Mobilehome Park Space Rent Stabilization
Ordinance. Said administrative services shall include (1) providing day-to-day responses to
citizen inquiries regarding the City ordinance; (2) providing administrative services to process
petitions for rent increase disputes; (3) facilitating administrative hearings through the County of
Sonoma, Permit Sonoma Administrative Hearing Officer program through completion of each
hearing; and (4) arranging a location for administrative hearings and other meetings required by
the City ordinance. The City understands and agrees that the Commission and its staff may be
required to apply and interpret the rent stabilization ordinance of City in connection with such
services, and agrees that Commission shall have no liability for any claim arising from
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Commission's good faith interpretation and application of the ordinance, so long as Commission
uses reasonable efforts to consult with and keep City informed regarding such interpretation and
application. If requested by Commission, City staff will promptly provide guidance to the
Commission regarding issues arising under the City ordinance; however, nothing in this
Agreement shall require Commission to request such guidance. Commission shall not be
required to make determinations under the City ordinance with respect to the timeliness of
petitions, the adequacy of financial information provided by parties, and similar issues if such
issues are disputed, it being understood and agreed that such questions may be determined by the
arbitrator. Nothing in this Agreement shall require Commission staff to take any action it deems,
in its reasonable sole judgment, unlawful or likely to result in liability to Commission.
2. INDEMNIFICATION AND DEFENSE: City acknowledges that Commission's
performance of services under this Agreement may give rise to claims and litigation against the
County of Sonoma or Commission or its employees, officers, or agents by mobilehome park
owners or residents, and that such claims and litigation may, for tactical or other reasons, allege
negligence or intentional misconduct on the part of County of Sonoma or Commission or its
employees, officers, or agents. Notwithstanding the nature of the claims, liabilities, actions, or
litigation asserted or alleged against County of Sonoma or Commission or its employees,
officers, or agents, City agrees to indemnify, defend, and hold harmless County of Sonoma and
Commission, and its agents (including arbitrators retained by Commission under this
Agreement), officers, and employees, from and against any and all claims, liabilities, actions, or
litigation of any kind whatsoever arising out of or related to County of Sonoma or Commission's
performance of services under this Agreement ("Claims"), to the maximum extent permitted by
law. In connection with the foregoing, City's obligation to indemnify and defend County of
Sonoma or Commission shall exist unless and until City establishes, by clear and convincing
evidence, that County of Sonoma or Commission's performance of services fell significantly
below the standards applicable to providers of administrative services for a rent stabilization
program. The city shall defend County of Sonoma or Commission at City's expense with counsel
selected by City, subject to County of Sonoma or Commission's approval of counsel, which
approval shall not be unreasonably withheld. In addition to City's obligation to defend County
of Sonoma or Commission as provided above, City shall have an obligation to provide or
approve separate counsel to defend County of Sonoma or Commission, at City's expense, only in
the event of an identified conflict of interest between City and County of Sonoma or
Commission.
The city understands and acknowledges that the City's agreement to indemnify and
defend County of Sonoma or Commission against all Claims pursuant to this Section 2 was a
material inducement for Commission to enter into this Agreement.
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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:
Margaret Van Vliet, Executive Director
Sonoma County Community Development Commission
1440 Guerneville Road
Santa Rosa CA 95403
CITY:
Peggy Flynn, City Manager
City of Petaluma
1I English Street
Petaluma, CA 94952
4. The commission will be paid for all services rendered. The commission will be
paid at the rate of $120.00 per hour for services rendered in the administration of the City
mobilehome rent stabilization ordinance. Annual services are anticipated not to exceed eighty
(80) hours per year. Invoices shall be sent to the City periodically. Services in excess of eighty
(80) hours must be negotiated and the subject matter of a separately written modification of this
contract. Where Administrative Hearing Officers 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. The 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 separately written modification of this
contract. The commission shall not be expected to take any affirmative action to enforce the
City ordinance or to enforce the terms of any Administrative Hearing decision.
6. INCIDENTAL LEGAL SERVICES RELATED TO ADMINISTRATION OF
CITY PROGRAM: City shall pay the Commission aithe rate of $256.00 per hour for County
Counsel services provided to City in counseling Commission staff regarding the administration
of City's rent stabilization program, provided the City has been notified in writing that the
Commission is seeking the services of County Counsel and the City has 24 hours to notify the
Commission that the City Attorney will handle the issue through their office. The purpose of
notifying the City is so the City can elect to involve its City Attorney in place of Commission
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Counsel. Commission Counsel shall not be responsible for recommending or suggesting
modifications of the language of City's ordinance. City agrees that if requested it will promptly
consult with Commission Counsel on any issue relating to the City ordinance, any
Administrative Hearing requested under the City ordinance, or any other issue relating to the
performance of services by Commission under this Agreement. Annual services from
Commission Counsel are not anticipated to exceed ninety (90) hours per year. Additional legal
services in excess of ninety (90) hours per year must be negotiated and the subject matter of a
separately 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 June 1,
2019, and end July 1, 2022. The rates under Section 4 and 6 may be amended annually effective
July 1 st to reflect the actual cost to Commission of providing services. Such new rates will be
provided to the City, in writing, prior to implementation.
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.
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 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 the 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.
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Date:
Dated:
Dated:
Dated
CITY OF PETALUMA:
By:
City Manager
COMMISSION:
By:
Executive Director
APPROVED AS TO FORM:
By:
County Counsel
By:
City Attorney