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HomeMy WebLinkAboutStaff Report 4.B 04/16/2012 A9—&r4 wIteww#4.3 , Ltry w P - 186$ DATE: April 16th, 2012 TO: Honorable Mayor and Members of the City Council through City Manager FROM: Bonne Gaebler, Housing Administrator��y�� SUBJECT: Resolution to Renew an Agreement Between the City of Petaluma and the Sonoma County Community Development Commission (CDC) to Administer the Mobile Home Rent Stabilization Ordinance RECOMMENDATION It is recommended that the City Council adopt the attached Resolution to Renew an Agreement Between the City of Petaluma and the Sonoma CountyCommunity Development Commission (CDC) to Administer the Mobile Home Rent Stabilization Ordinance 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 County CDC to administer the program. As part of that agreement, CDC staff fields questions; interprets the,ordinance language for park residents, owners, and managers; calculates the allowable annual rent increases; and performs other related services. The administrative functions performed by the CDC are required by the City's ordinance and there are no alternative providers available. The Commission:staff administers the program in an effective and efficient manner and is responsive to our parks requests and questions DISCUSSION The existing agreement with the County will expire on June 30, 2012 and the updated 2012-2015' agreement is presented for your consideration and approval. FINANCIAL IMPACTS This agenda item includes only the cost to the City for program administration; not legal costs attributed to arbitrations. The estimated cost of program administration solely is $2,000; it is not possible to predict arbitration costs. Historically, those arbitration costs have been included in the Low-Mod Housing,Fund. Due to the fiscal constraints facing all housing programs, future funding for this rent stabilization ordinance could be problematic. Should it become necessary, Agenda Review: City Attorney Finance Director City Manager for those fiscal reasons, to discontinue this agreement, such.an:action is allowable under Section 3. Termination, which states, "Either party hereto may`terminate this agreement upon thirty days notice..." ATTACHMENTS I. Resolution with Exhibit A 2 ATTACHMENT #1 RESOLUTION TO RENEW AN AGREEMENT BETWEEN THE CITY OF PETALUMA AND TFIE SONOMA COUNTY:COMMUNITY DEVELOPMENT COMMISSION (CDC) TO ADMINISTER THE MOBILE HOME RENT STABILIZATION ORDINANCE WHEREAS,the City of Petaluma has an adopted Mobile Home Rent Stabilization Ordinance for mobile home parks in the community; and WHEREAS, the City has entered into an agreement with the>Sonoma County Community Development Commission (CDC) to administer that ordinance; and WHEREAS, that agreement is due for renewal for another three-year term; and WHEREAS,the City wishes to continue to contract with the Commission to administer the. Ordinance for the period 2012-2015. 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 therewith. 3 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 2012, 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, 2012; 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: 1. 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 like manner to the comparable 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 arbitration petitions; (3) locating and retaining arbitrators for administrative hearings under the City ordinance; 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 hereby agrees to be bound by the judgment of Commission staff on such matters of interpretation and application 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 Commission regarding 4 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, 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 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 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 Commission or its employees, officers, or agents. Notwithstanding the nature of the claims,liabilities, actions, or litigation asserted or alleged against Commission or its employees, officers, or agents, City agrees to indemnify, defend, and hold harmless 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 Commission's performance of services under this Agreement, to the maximum extent permitted by law. Commission shall have the right to select its own legal counsel at the expense of City, subject to City's approval, which approval shall not be unreasonably withheld. City understands and acknowledges that the City's agreement to indemnify and defend Commission against all claims pursuant to this Section 2 was a material inducement for Commission to enter into this Agreement. 3. 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: Kathleen H. Kane; Executive Director Sonoma County Community Development Commission 1440 Guerneville Road Santa Rosa CA 95403 5 CITY: Bonne Gaebler;,Housing Administrator City of Petaluma 11 English St. Petaluma CA 94952 4. Commission will be paid for all services rendered. Commission will be paid at the rate of$85.00 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 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. 5. SERVICES LIMITED TO ADMINISTRATION: The Ordinance policy, findings and/or language 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. Commission shall not be expected to take any affirmative action to enforce the City ordinance or to enforce the terms of any arbitration decision. 6. INCIDENTAL LEGAL SERVICES RELATED TO ADMINISTRATION OF CITY PROGRAM: City shall pay the Commission at the rate of$223 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 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 arbitration proceeding 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 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 per year 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 against either party may be based upon such a claim. This agreement shall be enforceable only by the parties hereto. 6 8. TERM AND RENEWAL: The term of the;agreement shall commence July 1, 2012 and end June 30, 2015. The rates under section 4 and.6 may amended annually effective July 1st to reflect the actual cost to Commission of providing services. 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 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. Date: CITY OF PETALUMA: By: City Manager Dated: COMMISSION: By: Executive Director Dated: APPROVED AS TO FORM: By: County Counsel 7