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HomeMy WebLinkAboutAgenda Bill 3.A 03/17/2003MAR 17 ZOO R . 4 IN 4 CITY,OF PETTALUM-A, CALIFORNIA AG,E T DA BILL Agenda Title Discussion And Possible Action To Adopt A Meeting Date: T Renew An Agreement Between The City Of ' March 1'7, 2003 Pet luma The Sonoma County Community Development Commission To Administer The Mobile Home Rent Stabilization Meeting Time X 3 :00 PM Program.. ❑ 7:00 PM Category (check one) X Consent Caiendar ❑ Public Hearing ❑ New Business ❑ Unfinished Business ❑ Presentation Department Director. Contact Pers Phone Number PCDC Paul Mapngella Bo 1 M Veaa 778 -4555 or 778 -4484 (direct) Cost of'Proposal Account Number Administration: $75.00 /hour (not to exceed 1 ours) 903/400/5444 County Counsel $175.00 /hour (not to exceed 90 hours) Name of Fund: Total Cost of Agreement (not to exceed) $23 ',850 Mobile Home Rent Stabilization Anticipated expenditures $10,000 (through 2003 -04) Amount Budgeted $14,865 Attachments,to Agenda Packet Item #'1. Five 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 renewed that agreement in 1999. The existing agreement will expire in June of 2003; the updated proposed agreement will expire in June 2006. The Commission provides day -to -day information and referral services to the residents of Petaluma's mobile home communities, provides all services required to process arbitration petitions and selects qualified arbitrators for administrative hearings. Recommended City_founcill Action/Suggested-Motion: Adopt A Resolution To Renew An Agreement Between The C t Y Of Petaluma And The Sonoma County Community Development Commission. To Administer The Mobile'Home Rent Stabilization Program. Reviewed by.FinanceDii Rev e , - nev: Aivroved.bv Citv Manager: Date: te: ' J IL C Todav's Date: Revision # and Date Revised: File Code: # Mobhmagmt/d CITY OF PETALUMA, CALIFORNIA MARCH 17, 2003 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 EXECUTIVE SUMMARY The Sonorna County Community Development Commission (the Comrnission):administers Petaluma's.1994 Mobil'eHorne Rent Stabilization Ordinance. The scope of service outlined in the agreement between the City and the Commission include providing a clerk to process arbitrat ion petitions and select qualified arbitrators for administrative hearings. The City expressly makes the Commission and its staff agents of the City for purposes ofapplying and interpreting the ordinance and agrees to be bound by the Commi 'ssion's judgments in matters of interpretation and application of the ordinance. The existin ;five- ear a reement g y g expires in June 2001 The Commission has the expertise and staff to continue the services as described above and their work continues to be exemplary. 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 otherrelated.services- 3. 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 showrnon Exhibit #1, the average annual costs to administer this program from 1998 through 2001 were minimal. In fiscal year 2002 -03, the purchase of'Sandalwood by new owners; their. attempt to raise the rents above the amount allowed,by the ordinance and the ensuing arbitration and law suit caused a,substantial increase in activity and involvement by the Commission. The increased cost to the Commission under the existing contract was $45;966 for this fiscal year; more than all previous year's costs combined. " The actual cost of theprogram`and of this contract is funded by the rent stabilization administrative fee which is assessed a,gai . st the park owners and the residents on an equal basis. Council will review and act on that staff report in conjunction with this item. in that report, staff has recommend "ed increasing the administration fees to reestablish. a safe • reserve for future. legal activity and unanticipated arbitrations. As, shown in Exhibit #1,.the fund'will be increas "' an estimated $5 ;640 in 2003 administration fees, with anticipated expenditures of $1,50.0.. The balance (K140) plus the existing fund balance of $10,725 will give the Rent Stabilization• Program $1.4,856'in available revenue for FY 2003 -04. .6/30/03 Revenues Over Expenditures: $ .4 Fund balance: $ 10,725 Available as of July 1, 2003 $14,805 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 pa_id'by the, Commission and reimbursed by the City for the actual expenses incurred. 5. CONCLUSI.ON 'The�Commission this in an effect -ve and efficient .manner. The staff person, Bill Morgan, is well- respected by the; mobile home 'owners and residents alike. The'Commission is responsive to all'Citystaffrequests and questions. 6. 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. '7. RECOMMENDATION Adopt the resolution approving the agreement and direct the City manager to sign all appropriate documents. Mobhmagmt /d filename: s:\ accountant \cinde \exeel\misc\mobhome CITY PETALUMA, CA MOBILE HOME RENT STABILIZATION PROGRAM Fund Balance as of 1/01/03 w /ith projection to 6/30/03 2/24/2003 IPM 6/30/1998 6/30/1999 6/30/2000 6/30/2001 6/30/2002 1/1/2003 projected 6/30/0 Revenue 5,990:00 1,920.00 1 1,785.00 2,805;00 5,640:00 Expenditures So Co Community Develop 1,925.00 30.00 60.00 5 283.26 750.00 City Attorney 4,867.00 375.00 750.00 So Co Counsel 29.88 Miscellaneous 3.36 5.09 10.08 (10.08) Total Expenditures 1,928.36 30.00 65 39.96 10,82193 658:26 1,500.00 Revenue over Expenditures 4,061.64 1,890.00 1,809.91 1,745.04 (8,017.93) (658.26) 4,140.00 Beginning Balance 9,894.07 13,955.71 15,845.71 17 19,400:66 11,382.73 10,724:47 Ending Balance 13,955.71 15;845:71 17,655.62 19 11,382.73 10,724.47 14,864,47 �C t� y 4t_ t 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 HOMEREMNT STABILIZATION ORDINANCE WHEREAS the'City of Petaluma (the City) has adopted a rent stab_ ilization ordinance and program 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 2003; and WHEREAS the. City wishes to contract with the Commission to-continue to administer the ordinances for an additional term (through June 2006); NOW THEREFORE BE -IT RESOLVED that the Petaluma City Council approves the Agreement.(Attachment A to this resolution) and authorizes the CiiyManager "or°his designee to sign all necessary documents. ATTACHMENT A AGREEMENT BETWEEN'THE CITY OF PETALUMA AND THE SONOMA COUNTY COMMUNITY DEVELOPME.NT'COMMISSION FOR ADMINISTRATION OF PETALUMA MOB'ILEHOME RENT STABILIZATION PROGRAM AND HOLD 'HARMLESS, INpEMNIFICATION AND DEFENSE AGREEMENT THIS CONTRACT, made this 24th day of March 2003; - 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, 2003-; 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 ereto agree as follows: T. SCOPE OF SERVICE : Commission shall admiinister.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 providing a clerk to process arbitration petitions and qualified arbitrators for administrative hearings, The City expressly makes Cornmission 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'sh'all be; free not td 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 .HARM LESS: . holds harmless °the 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 IV , rpose of the ordinance; provided, however, that Commission shall perform all such services in the -1- c:wi nwordlagre926p1Tino %cndoc 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, withi service of said notice being, made as follows: COMMISSION': Janie V. Walsh, Executive Director Sonoma Commission Community Development. Commisssion .1440 Guerneville Road Santa Rosa CA 95403 CITY: Bonne Gaebler, Housing Administrator City of Petaluma 11 English 'St. Petaluma CA 94952 4. C_omm'ission ,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 notto exceed one hundred eight (108) hour .per year. Invoices, shall be: sent to. the City on a monthly basis. 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. Currently arbitrators are paid at the rate of approximately $500:00] per day. 5. - SERVICES LIM.IT:ED'TO ADMINISTRATION: The Ordinance policy, findings arid/or anguage 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. IN'CID,ENTAL LEGAL SERVICES RELATED TO ADMINISTRATION OF CITY PROGRAM: City shall pay the Commission- at the rate of $175.00 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 forrecommend_ing or suggesting modifications of the language of '.City's ordinance.. 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 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 -2- c:winwordlagre926p\Tin6cntloc ' Aipainst either party maybe based upon such a claim. This agreement shall be enforceable only by ` II R6,parties hereto. 8. TERM AND RENEWAL: The term of the agreement shall commence July 1, 2003 and end June 30, 2006. The rates under section 4 and 6 may be amended annually effective July 1st. 9. RECORDS: Except for,materials that may be subject to the attorney client privilege, records maintained by the Commission in the administration of Citys rent stabilization program are Citys. All such documents shall .b.e 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 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 'Procedu're 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 ECUTED. Date CITY OF PETALUMA: City Manager Dated: COMMISSION: for the County of Sonoma and the Sonoma County Community Development Commission Dated: APPROVED AS TO FORM: A t County Counsel • -3- c:wi n w ord \a g r e 926 p \Ti n o \cn d oc