HomeMy WebLinkAbout2012/01/24 Item 05~~.~_ ~ CITY COUNCIL
- "+- AGENDA STATEMENT
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JANUARY 24, 2012, Item
ITEM TITLE: RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA ADOPTING MOBILEHOME PARK SPACE -
RENT REVIEW ADMINISTRATIVE FEE REGULATIONS
SUBMITTED BY: ASSISTANT CITY MANAGER/DIRECTOR OF
DEVELOPMENT SE,,RoVICES ed f*. G•ff•
REVIEWED BY: CITY MANAGE
4/STHS VOTE: YES ~ NO
SUMMARY
On July 19, 2011 City Council approved various amendments to Chula Vista Municipal
Code 9.50 (Chapter 9.50) -Mobilehome Park Space -Rent Review. One amendment
included the addition of an Administrative Fee to continue to provide mobilehome
residents services and benefits available to them under Chapter 9.50. At this time, staff is
bringing forward the Administrative Fee Regulations to implement the fee. Once staff
has completed the necessary data collection, the proposed fee amount will be brought
back for City Council adoption in the Master Fee Schedule.
ENVIRONMENTAL REVIEW
The Director of Development Services has reviewed the proposed activity for compliance
with the California Environmental Quality Act (CEQA) and has determined that the
activity is not a "Project" as defined under Section 15378 of the State CEQA Guidelines
because the proposed activity consists of a governmental administrative action that will
not result in direct or indirect physical changes in the environment. Therefore, pursuant to
Section 15061(b)(3) of the State CEQA Guidelines the activity is not subject to CEQA.
Thus, no environmental review is necessary.
RECOMMENDATION
Council adopt the resolution.
BOARDS/COMMISSION RECOMMENDATION
On May 31st the Mobilehome Rent Review Commission (MHRRC) recommended that
the City Council adopt staff's recommendation (5-0) to amend Chapter 9.50, inclusive of
the administrative fee.
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JAN"[JARY 24, 2012, Item
Page 2 of 2
DISCUSSION
Effective August 18, 2011, Section 9.50.030 established an Administrative Fee be
assessed upon all eligible mobilehome residents that receive services under Chapter 9.50,
including, but not limited to, a rent calculation which results in reduced rents and related
ombudsman services. The establishment of this fee was necessary in order to ensure a
consistent funding source for implementation of the ordinance. Since collection of the
fee requires significant cooperation by both park owners and residents, staff has
developed draft regulations for a process to collect the necessazy data to assess the fee
annually, which is being brought forward at this time (Attachment 1 - "CVMC 9.50
Mobilehome Pazk Space -Rent Review Administrative Fee Regulations").
The fee would be assessed annually on all mobilehome resident spaces qualifying for
protection under Chapter 9.50, and approved by City Council as part of the Master Fee
Schedule. It is anticipated that approval of the fee will be brought forward for Fiscal
Year 2012/2013 in June of 2012, with billing commencing shortly thereafter. Staff will
conduct public outreach meetings in April to answer resident questions related to the
Administrative Fee.
In addition, per previous Council direction, City staff has offered to host a joint meeting
between the Chula Vista Mobilehome Pazk Owners Association (park owners) and Chula
Vista Mobilehome Residence Owners Association (residents) to discuss the
establishment of ongoing voluntary meetings of the groups. Staff would host the initial
meeting, however would only participate in future meetings at the request of the
associations.
DECISION MAKER CONFLICT
City staff has determined that Councilmember Ramirez has property within 500 feet of a
mobilehome park, but upon review of the scope of the proposed action and the extent to
which a material effect is contingent upon intervening events, any material financial
effect is not reasonably foreseeable within the meaning of FPPC regulation 18706.
CURRENT YEAR FISCAL IMPACT
None, administrative expenses related to CVMC 9.50 have been appropriated in the
Housing Authority budget for Fiscal Year 2011/2012.
ONGOING FISCAL IMPACT
The amendments establish an administrative fee as of July 1, 2012 to offset staff time and
other administrative expenses currently being paid by Housing Authority reserves.
ATTACHMENTS
1. CVMC 9.50 Administrative Fee Regulations
Prepm~ed by.' Stacey Kurz, Senior Project Coordinator,
Development Services Department, Housing Division
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ATTACHMENT 1
CVMC 9.50
MOBILEHOME PARK SPACE -RENT REVIEW
ADMINISTRATIVE FEE
REGULATIONS
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CITY OF
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Adopted by City Council Resolution No. 2012- on January 24, 2012
Mobilehome Park Space. -Rent Review Administrative Fee Regulations
On July 19, 2011 the City Council of the City of Chula Vista adopted various amendments to
Chula Vista Municipal Code 9.50 (CVMC 9.50). Such amendments included a new section of
the ordinance, 9.50.030 "Administrative Fee", to establish a fee to provide the mobilehome
residents unique services and benefits available to them only under Chapter 9.50, including, but
not limited to, a rent calculation (via the annual permissive and exceeding the annual permissive)
which results in reduced rents and related ombudsman services. The establishment of such fee
requires the cooperation of both park residents and owners in order to establish who is covered
under Chapter 9.50. This set of regulations defines the process for initial and ongoing data
collection efforts to establish the fee on an annual basis in the City's Master Fee Schedule.
1. INITIAL DATA COLLECTION
In order to establish the initial number of residents covered under Chula Vista Municipal Code
9.50 and thus determine the correct fee to each resident, the city shall coordinate with park
owners to establish the correct mailing addresses of all residents within their parks. Pazk owners
shall provide this information within a reasonable period of the time of such request from the
city.
The city will provide "Notice of a Resident Survey", Attachment 1 for park owners to post
followed by a postcard mailed to all residents, as provided in substantial form in Attachment 2,
to establish whether they are eligible under Chapter 9.50 or are exempt from such fee because of
a space rental agreement that meets the requirements of Section 798.17 of the California Civil
Code. The postcadd further provides a release of information for collection purposes and allows
the city to coordinate and confirm the eligibility of residents with park owners. The postcazd
further provides that the tenants shall waive any claims or causes against causes of actions
against the park owners for providing the requested information or confirming eligibility.
The city will prepare and send an "Eligibility Report Confirmation" to the park owner to confirm
those residents that have claimed eligibility of coverage under Chapter 9.50. Park owners shall
return such "Eligibility Report Confirmation" to the city within 30 days of receipt. If a park
owner identifies a resident as being ineligible for coverage under Chapter 9.50, the park owner
shall complete the "Eligibility Objection", Attachment 3, and send a copy of such letter to the
city. The city will notify the affected resident with a copy of the "Eligibility Objection". If the
affected resident disagrees with the "Eligibility Objection" the burden of proof shall lie with the
resident to provide documentation proving eligibility within 30 days of the city letter. Eligible
proof is identified in Attachment 2.
The park owner shall not be responsible for identifying or contacting residents who are non
responsive to the "Resident Survey" or "Eligibility Objection".
2. INITIAL FEE ESTABLISHMENT & COLLECTION
After city data collection, staff shall prepare a report for city council to establish the fee per
resident for fiscal year 2012/20] 3 (July 1, 2012-June 30, 2013) and adopt such fee in the City's
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Master Fee Schedule. Such fee shall be established by dividing the number of residents
determined eligible for Chapter 9.50 through the "Eligibility Report Confirmation" and the
amount necessary to recover the costs of administering Chapter 9.50 as determined by previous
year expenditures and anticipated administration in the upcoming yeaz.
Billing shall be sent duectly to each resident identified in the "Eligibility Report Confirmation".
3. ONGOING DATA COLLECTION & FEE ADMINISTRATION
The city shall report to the city council each fiscal year with a recommendation regarding the
amount necessary to recover the costs of administering Chapter 9.50, and the proportion of said
fee levied on the mobilehome residents based on the relative services provided. Any surplus or
deficit in the total fee collected for the previous year to the expenditures shall be carried forward
and applied in calculating the subsequent year's fee.
Pazk owners shall provide a "Request for Eligibility", Attachment 4, to all incoming residents to
the park upon change of ownership and existing residents upon a change in rental agreement
terms in order to establish eligibility and a release of information to the city. It shall be the
burden of the affected resident to provide the "Request for Eligibility" to the city to update the
"Eligibility Report Confirmation", which shall also be sent annually for confirmation to the park
owner. This "Request for Eligibility" shall be required in addition to the Disclosure
requirements in Section 9.50.085.
4. APPLICABILITY
As of July 1, 2012 all residents must pay the administrative fee in order to be eligible for services
under Chapter 9.50. The provisions of this chapter shall not apply and no petition will be
accepted from a resident opposing a rent increase above the annual permissive and no hearing or
other proceeding shall be scheduled or take place for a mobilehome space rent in which there is
an unpaid administrative fee.
The city establishes a grace period for unpaid fees to be made current within 30 days of annual
collection. If a resident is subject to a proposed rent increase above the annual permissive rate
and is not current with fee payments to the city, the Mobilehome Rent Review Commission
(MHRRC) shall make such consideration to allow the resident to become current and regain
coverage, unless they have waived such rights or have an exempt rental agreement. The
MHRRC shall review, but not be limited to, the following criteria in making such decision:
• History of payment
• Reason for nonpayment
• Barriers tp effective communication
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ATTACHMENT 1 -Notice of a Resident Survey
~~{~f FOR IMMEDIATE POSTING
~r
aw of ATTENTION ALL RESIDENTS
CHUTA VISfA
Notice of a Resident Survey -March 1, 2012
On August 18, 2011 various amendments to Chula Vista Municipal Code 9.50, Mobilehome
Park Space -Rent Review took effect. Included among the amendments, were the deletion of
the right to petition rental increases upon change of ownership and the addition of Section
9.50.030, establishing an administrative fee to continue to provide mobilehome residents unique
services and benefits available to them only under Chapter 9.50, including, but not limited to, a
rent calculation (via the annual permissive and exceeding the annual permissive) which results in
reduced rents, often referred to as rent control, and related ombudsman services.
If you have an eligible rental agreement, defined below, such protection and services under
Chapter 9.50 have likely been afforded to you for a number of years. Due to cuts in the funding
sources for the administration of CVMC 9.50, without a permanent funding source for such
administration, the ordinance would face possible elimination.
Elieible Leases
• Have a valid space rental agreement with the park
• Lease term under 12 months
• Home is primary residence
In order to continue receiving protections of the annual permissive rental limits established in
Chapter 9.50 all eligible residents must begin paying the annual Administrative Fee (Fee). Such
Fee shall apply to each mobilehome rental space within parks, except such spaces that are
exempt from such Fee because of a rental agreement that meets the requirements of Section
798.17 of the California Civil Code.
Beginning March 1, 2012 the City will be mailing surveys to all
mobilehome residents in order to determine the number of persons
eligible under Chapter 9.50. The surveys will serve as the basis for
determining the administrative fee that each resident must pay. If
you do not return the Eligibility Survey, you will not be protected
under the City's Rent Review Ordinance.
Park owners will receive and confirm a list of residents claiming eligibility prior to billing each
year. Should they deem a space has an ineligible rental agreement under CVMC 9.50 an
"Eligibility Objection" will be sent to both the city and affected resident. It shall be the burden
of proof of the resident to settle any discrepant information.
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ATTACHMENT 2 -Resident Stuvev
`xar Moblehcme Resadent, ~l~jr
5egir ning July 2012 mahilehome resdentr must pay an ~.
administrative fee to the city in order to retain the right to petitkon cnru
inrsezses over the annual pe;missiveCNUU4415~4
rate (formula of the Consumer price Index-CPI!
and receive seruices under Chula 5'uta fvtnicipat
,. ,,~... _ Cade 9.59, citen referred to as rent control.
In order to assess the fee, the city must first
detzrrnine the number of residents eSigible far rent
review. Therefore, the attached survey must 6e
completed and returned by s;pril 30, 2912.
Ey not completing the attached survey a1d{or
payment of the #ee you maw ts~aive year right to rent
revievr pra*ectior~s.
• Infioemation provided wil! be verified 5y the city and
park oxmer orior to billing.
', Resident Survey
You must comp?ate & return this caul to be efigrhte for rent rea;ew?
Please check all that apply_
0 Dwn Ne mobi4ehnnreMailer OR Q Rent the nmbiielaomekmilerfrcmthe Park.
0 ktonM m month lease w 4ess than f3 months OR. Q Lnerg-terra lease eaI12 months w mwe
ltwe gire thF pack owner/management permission Yo confirm we have an eligiblF lease under
C\'h4C e.50 and further understand thaE h rs my twrtlen oY prwf should the city or park owner indi-
cate that we are exempt LwF further ageee Eo hold harmless antl release the park owner, its affi-
ciads. officers, mana9~ent. employees, agtnt5. andlor attorneys,. from any an all Naims, de-
mands.. causes ai actions, un any manner arising au[ of er incident to any apeged acts, omissawis,
neg8igence, or wiFlful miseor*duc[. of 4y theriz arising ou? of ar in co~nec[fan with the release of
information antl/or confirmation of eligibilRy pursuant iro this request
$IgndrVfF slate
AdtlrFSS spa=e ><
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Page 5 of 7
ATTACHMENT 3 -Park Owner Eligibility Objection
ELIGIBILITY OBJECTION
The following resident has claimed eligibility of coverage under Chula Vista Municipal Code
Chapter 9.50 (CVMC 9.50) based on the City's "Eligibility Report Confirmation", however
based on review of park records; management does not believe they aze currently eligible for the
reason listed below.
Park Name:
Park Contact Name: ,Phone No. ~) -
Resident(s):
Space:
Ineligible due to the following reason:
Person(s) signing the "Resident Survey" are not legal tenant(s) in the rental agreement
and/or no rental agreement exists on file with the park.
The rental agreement is exempt per California Civil Code Section 798.17, due to the
following:
Rental agreement exceeds 12 months.
Resident rents both the space and mobilehome from the park owner.
Home is not the primary residence of tenant(s).
Should the affected resident(s) listed above disagree with this "Eligibility Objection", such
resident(s) should contact the park contact listed above to discuss. The burden of proof shall rest
with the resident(s) for any discrepancy. Resident(s) must submit proof within 30 days to the
city by providing a copy of the new lease terms and signature page to the city.
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ATTACHMENT 4 -New Resident Eligibility Request
REQUEST FOR ELIGIBILITY: MOBILEHOME PARK SPACE -RENT REVIEW
Beginning July 1, 2012 any residents with an eligible lease under Chula Vista Municipal Code Chapter
9.50 (CVMC 9.50), often referred to as rent control, and desiring to be protected by such rights shall pay
an annual Administrative Fee to the City of Chula Vista, per Section 9.50.030.
Mobilehome Park:
Resident Name(s):
Mailing Address: Space #.
UWe, ,acknowledge receipt of our
rights under Chula Vista Municipal Code Chapter 9.50 (CVMC 9.50) and hereby (please check one
below):
Deny coverage or payment of the Administrative Fee and thereby waive my rights to any such
services provided by CVMC 9.50.
^ Desire protection under CVMC 9.50 and agree to pay the associated Administrative Fee as defined
in Section 9.50.030 of CVMC 9.50. UWe further confirm Uwe have read and confirm the
Acknowledgement section below.
ACKNOWLEDGEMENT
UWe confirm that Uwe have an eligible lease under Chapter 9.50 of the City of Chula Vista Municipal
Code and have answered yes to all questionsin the enclosed letter.
UWe acknowledge that by not returning this Request for Eligibility or payment of the annual fee Uwe
waive all rights to protection under Chapter 9.50 and shall be ineligible from the protection of the annual
permissive increase limit or right to petition any such increase above the annual permissive rate.
Uwe give the park owner/management permission to confirm we have an eligible lease under CVMC 9.50
and further understand that it is my burden of proof should the city or park owner indicate that we are
exempt. Uwe further agree to hold harmless and release the park owner, its officials, officers,
management, employees, agents, and/or attorneys, from any an all claims, demands, causes of actions, in
any manner arising out of or incident to any alleged acts, omissions, negligence, or willful misconduct of
by them, arising out of or in connection with the release of information and/or confirmation of eligibility
pursuant to this request.
SIGNATURE & DATE
Signed
Print name:
Signed
Print name:
Date
Date
Please return this form immediately upon signing of the rental agreement with the park to:
City of Chula Vista ~ Attn: Housing - Mobilehomes ~ 276 Fourth Avenue ~ Chula Vista, California 91910
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RESOLUTION NO.2012-
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA ADOPTING MOBILEHOME PARK SPACE -
RENT REVIEW ADMINISTRATIVE FEE REGULATIONS
WHEREAS, California State Mobilehome Residency Law allows local jurisdictions to
establish rent control; and
WHEREAS, in 1982, the City adopted Chula Vista Municipal Code Chapter 9.50,
"Mobilehome Park Space -Rent Review," as allowed by Mobilehome Residency Law, and
amended the Chapter to its current form on July 19, 2011; and
WHEREAS, the ordinance amendments took effect August 18, 2011 and established an
administrative fee to provide the mobilehome residents unique services and benefits available to
them only under Chapter 9.50, including, but not limited to, a rent calculation (via the annual
permissive and exceeding the annual permissive) which results in reduced rents and related
ombudsman services; and
WHEREAS, the City now desires to adopt the regulations for the collection of such fee,
known as "Mobilehome Space Rent Administrative Fee Regulations" and have staff return to
adopt the fee once the data collection and necessary fee calculations has occurred.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula
Vista hereby approve and adopt the "Mobilehome Park Space -Rent Review Administrative Fee
Regulations" in substantial form, to enforce Chula Vista Municipal Code 9.50 "Mobilehome
Park Space -Rent Review" setting forth the initial and ongoing process for the collection of data
to establish the fee annually.
Presented by:
Gary Halbert, P.E. AICP
Assistant City Manager/Director of
Development Services
Approved as to form by:
~~~
len . Googins
City Attorney
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T h e L o f t i n F i r m LU'
Attorneys at Law
VIA U.S. MAIL
January 24, 2012
Honorable Mayor and Members of the City Council
City of Chula Vista
City Hall -Building 100
276 Fourth Avenue
Chula Vista, CA 91910
RE: January 24, 2012, Consent Item Number 5
Dear Honorable Mayor and Members of the City Council:
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We are counsel for the Chula Vista Mobile Home Park Owners Association, Inc.
("CVMHPOA"). On behalf of CVMHPOA, we inform the City of Chula Vista that our clients
were not provided advance notice of the proposed Consent Item Number 5 resolution and
regulations, or provided the opportunity to review and comment as per our previous discussions
with staff and City officials.
We respectfully request that the Honorable Mayor and Members of the City Council continue
Consent Item Number 5 for at ].east two weeks, to allow for CVMHPOA to review these new
regulations, and collaborate with City of Chula Vista staff and provide valuable suggestions as to
the implementation.
Best ~ s,°~
xander :-P~laniscalco, Esq.
THE LOFTIN FIRM LLP
cc: CVMHPOA, Inc.
5760 Fleet Street, Suite 110 • Carlsbad • California • 92008
T: 760.431.2111 • F: 760.431.2003 • www.loftinfirm.com • amaniscalco@loftinfirm.com
Client !Pile No
M:AChula Vista MH Park\Lerierto City Council NequcsiingContinuance {-24-12.doc ~~ ~n/0~0