HomeMy WebLinkAboutAgenda Bill 5.A 03/17/20031
CITY OF PETALUMA, CALIFORNIA
AGENDA SILL
Agenda Title
Meeting Date:
March 17, 2003 .
Resolution Authorizing Program Administration Fees' for Mobile
Home Park Space Rent Stabilization Program for 2003
Meeting Time X 3:00 PM
❑ 7:00 PM
Category (check one) ❑ Consent Calendar ❑' Publie' Ilearing X.New Business
❑ Unfinished Business F Presentation
Department
Director
Contact Person
Phone Number
PCDC
Paul Marangella
Bonne Gaebler
778 -44:84 (direct line)
Cost of_Propo sal
Account_ Number
$5,430 (est.)
903 -5444
Amount Budgeted
Name of,Fund:
$5,430
M0 bile Home Rent Stabilization
Attachments to Agenda Packet `Item
#1. '5 -year Sources and Uses
#2. Rent Ordinance Survey by Park
0. 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 2003 fee be increased to $30.00
per year /per space covered under the ordinance. The 2002 fee was $15.00 per year per space. This
recommendation is based on a f nancial review which shows a substantial increase in expenditures in the
2002 -03 fiscal year because of the Sandalwood legal. actions and arbitration. The recommended increase
will reestablish a reserve fund which. will be adequate to cover annual costs and retain a reserve for
anticipated or unanticipated legal fees and/or arbitrations.
Recommended City Council Action /Suggested Motion
Adopt Resolution 'Authorizing ;Program Administration fees for Mobile Home Park Space Rent
Stabilization Program for'2603.
Reviewed Finance Director:
Aeview At nev:
A rove ` City Manager:
Date:;
Date:
Today's Date '
Revision # and Date, Revised:
File Code:
#
February 28, 2003
Mobhomstaff/d
•
:CITY Of PETALUMA, CALI
MARCH 17,:200
AGENDA REPORT
FOR
RESOLUTION AUTHORIZIM1 PROGRAM ADMINISTRATION FEES FOR MOBILE
HOME - PARK SPACE: RENT STABILIZATION PROGRAM FOR 2003
EXECUTIVE SUMMARY Section 6.50.160 of the 1994 City of Petaluma Rent
Stabilization Ordinance authorizes the City to collectan annual fee.for administration of
the ordinance. The ordinance states that "on or before.Apnl 30" of each year. and every
subsequent year each inobile�home -park owner shall payto the City Clerk of the City of
Petaluma a mobile:home park.rent stabilization program ad__ministration fee for each
mobile home space as defined herein,.ineludingb,oth 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 rent stabilization program is .included in the Housing Program budget. The purpose
of the adninistration fee, which;s assessed against the 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.
• In conjunction with the Sonoma County Community Development Commission
( SCCDC), staff recommends increasing the annual administrative fee to reflect the
increase in costs related to the Sandalwood proposed rent increase and subsequent
arbitrationand rebuild an adequate reserve amount for ariyfuture legal costs. (A 5 -year
Sources and Uses Chart s,attached as Exhibit: # and shows the dramatic increase in
expenditures between 6/30/01 and 6/30/02).
2. BACKGROUND AND FINANCIAL IMP,ACTs The City has a five -year agreement with
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.
That agreement between the City of Petaluma and SCCDC is due for renewal this year
(June 2003) and has also been agendized for Council action.
The first year of the ordinance, 1995, the administration fee was $65 /space /year. Based
on actual, annual expenditures, staff has recommended decreases over the years to
$15 /space /year; an amount, which was, at that -time, sufficient to cover average annual
costs and:retain'a reserve for unanticipated legal fees.
Staff,req vests °updates: on spaces covered'bythe ordinance versus long -term leaseholders
at each park'annually. This year it Was :deterin ried that'there were 181 spaces which are
covered under the ordinance. A breakdown by park is attached as Exhibit #2.
3. ALTERNATIVES The Council may decide to increase or decrease the annual fee.
4. CONCLUSION After City Council adoption of the resolution authorizing the 2003
administrative fees, assessments will be sent to�.all.park owners by the Finance
Department to be paid by.Apri130, 2003 as required -by the ordinance.
5. OUTCOMES OR PERFORMANCE MEASUREMENTS THAT WILL I.DEP
SUCCESS OR COMPLETION The administrative fees will`be'collected and u
for administration of the rent stabilization program.
6. REcOmmENDATION Adopt resolution, Exhibit 43.
Mobbbmstaff/
2/24/20035.27.PM =
filename: s:\ aecountantbinde \excellmisc\mobhome
CITY OF PETALUMA, CA
MOBILE HOME RENT STABILIZATION PROGRAM
Fund Balance as of 1/01/03 with projection to 6/30/03
6/30/1998
6/30/1999
6/30/2000
(13012001
6/30/2002
1/1/2003
ro'ected..6/30 /0.
Revenue
5,990:00
1,920.00
1,875.00
1,785.00
2 -00
5
Expenditures
So Co Community Develop
1,925.00
50.00
60.00
5;966.01
28:3.26
750.00
City Attorney
4,867.00
375.00
750.00
So Co Counsel
29 88
Miscellaneous
:3.36
5.09
M08
(1
TotalI "Npenditures
1
.30.00
65.09'
39.96
10;822.93
658.26
1;500.06
.Revenue over Expenditures
4,061.64
1,890.,00
1
1,745.04.
(8,017.93)
(658:26)
4,140.00
Beginning, Balance
9,894.07
13,955,.71-
15,84=5.71.
17,655,62
T9,400,6fi
1138173
10
Ending Balance
13,955.71
15,845.71
17 655.62'
I9,400:66
11,382.73'
10,724:47
14,864,47
I
EXHIBIT #2
RENT ORDINANCE SURVEY'BY PARK
Name of Park
Number of Spaces
Spaces Under Ordinance
2002 2003
Capri
69
0 0
Leisure Lake
134
36 36
Little Woods
76
4 2
Petaluma.= Estates
215
4 4
Royal Oaks
94
28 28
Sandalwood
178
92, 82
Youngstown
102
27 29
Total Park Spaces
868
191 181
•
EXHIBIT 3
AUTHORIZING' PROGRAM ADMINISTRATION FEES FOR T'H.E MOBILE HOME
PARK SPACE RENT STABILIZATION PROGRAM FOR 2003
WHEREAS, pursuant to Ordinance No. 1949 N.0 S'.,, the City of Petaluma adopted a Mobile
Home park Space Rent Stabilization Program; sand
WHEREAS, pursuant to said ordinance, the City Couneil.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 administrati'`oii fee herein;
NOW, THEREFORE, BE IT RESOLVED that on or before April30, 2003 each mobile home
park owner shall pay to the4 City Clerk of the City of Petaluma a mobile home park rent
stabilization program administration fee in the sum of thirty dollars ($30:00) per year 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 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 y y . A service fee equal to one and
g me of the Cit for the recover of such amount
one -half percent (1% %) per month will be charged on all late payments of registration fees under
this ordinance.
•