HomeMy WebLinkAbout2013/05/21 Item 07CITY COUNCIL
AGENDA STATEMENT
~`~~ CITY OF
CHUTA VISTA
May 21, 2013, Item 7
ITEM TITLE: PUBLIC HEARING TO CONSIDER AMENDING CHAPTER 18
(MOBILEHOMES) OF THE CITY'S MASTER FEE SCHEDULE
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA AMENDING CHAPTER 18 (MOBILEHOMES)
OF THE CITY'S MASTER FEE SCHEDULE, INCLUDING
SETTING THE FEE AT $60 FOR FISCAL-YEAR 2014
SUBMITTED BY: DIRECTOR OF FINANCE/TREASURER
ASSISTANT CITY MANAGER/DEVELOPMENT SERVICES
DIRECTOR
REVIEWED BY: CITY MANAGER ~,b/Jp7
4/STHS VOTE: YES ~ NO
SUMMARY
Effective August 18, 2011, Section 9.50.030 established an Administrative Fee to be assessed
upon all eligible mobilehome residents receiving benefits and services under Chula Vista
Municipal Code 9.50 ("Chapter 9.50") - Mobilehome Park Space Rent Review. At this time,
staff is bringing forward an amendment to Chapter 18 of the Master Fee Schedule, including
setting the annual administrative fee at $60 for Fiscal-Year 2014 ("FY 14").
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 conduct the public hearing and adopt the resolution.
BOARDS-COMMISSION RECOMMENDATION
Not applicable.
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May 21, 2013, Item 7
Page 2 of 5
DISCUSSION
On July 19, 2011 City Council approved various amendments to Chapter 9.50 including the
establishment of an Administrative Fee in order to ensure a consistent funding source for
implementation of the ordinance (which provides unique benefits and services solely to
eligible mobilehome residents) and to conform to the general city policy that the public at
]azge should not subsidize activities of private interest. As part of the annual Administrative
Fee update process, staff has committed to annually reporting out on prior yeaz revenues and
expenditures in an effort to establish the amount necessary to recover the costs of
administering Chapter 9.50. This item provides an update on the initial data and collection
efforts and establishes the fee for FY 14.
Outreach and Educational Efforts
In this initial year of collection, staff made extensive outreach efforts to ensure that residents
were awaze of the rights and services they had been benefiting from and would be opting out
of by non-payment of the fee, including:
• Office Visits &Mobilehome Information Line -Staff established a dedicated line for
mobilehome questions and responded to over 500 calls and office visits.
• Resident Survey & Invoicing -Six (6) mailings were made to residents in the form of
postcazds (March and April 2012) and bills (July 2012, August 2012, December 2012 and
Mazch 2013). Staff additionally verified all returned mail with park management to
confirm vacancies and accuracy of addresses.
• Informational Meetings- Nine (9) educational forums were held.
• Direct Noticing -City staff posted individual notices to unpaid spaces in October 2012.
Both the Chula Vista Mobilehome Park Owners Association (pazk owners) and Chula Vista
Mobile Home Residents Association (residents) additionally provided noticing at vazious
pazks.
• Office Hours - In Mazch 2013 staff posted individual notice and held office hours at three
(3) pazks.
After several extensions of the fee collection process, staff was able to receive information
from 3,108 residents, leaving 304 spaces with unknown eligibility.
Initial Yeaz Overhead Exroenses
Staff recognized that the initial yeaz set-up would be extensive and require more staff hours
than in future yeazs; staff has therefore identified those expenses that are considered overhead
expenses and not being chazged to the administrative fee below, totaling over $19,000.
• Database Initialization and Maintenance -The IT department and intern staff time was
significant the first yeaz for programming, set-up; and data input into the database that is
being used for annual fee collection, totaling $11,270.
• Administrative Fee Billing- Interns staff time was expended in assisting the billing process
this year totaling $1,350.
• Translation and Bilingual Services - Staff services associated with translation of
documents and bilingual assistance to residents by phone and office visits were expended
totaling $6,550.
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May 21, 2013, Item ~
Page 3 of 5
• Off ce Supplies -Due to the extensive amount of outreach many mailing, printing and other
associated office supply expenses were captured as deparhnentoverhead in Fiscal-Year 13
("FY 13") but will be line items in future expenditure reports.
FY 13 Revenues and Expenditures
Anticipated revenues for FY 13 were $120,000 based on 2,000 residents paying the fee at $60.
Actual payments have been received from 2,157 eligible spaces for total revenues of
$129,420. A fiscal analysis of revenues and expenditures is provided in Table 1 with a
description of the activities following.
Staff Charges
During FY 13, $93,629.93 in staff charge time for administration of Chapter 9.50 was
realized. Charges have been summarized below as annual expenses, which, may be reduced in
future years but are anticipated annually, and one-time non-recurring expenses that are
charged to the fee due to their direct impact on Chapter 9.50 effectiveness.
Annual Expenses -
• Ombudsman Activifres & Mobilehome Rent Review Commission ("MHRRC
Educational Meetings -Staff provided extensive general ombudsman related activities to
residents and held informational meetings with the MHRRC.
• Annual Permissive Rent Calculations -Twice annually the Consumer Price Index (CPI)
is released and staff provides notification to all park owners and managers of the annual
permissive rate as calculated under Section 9.50.050.
• Administrative Fee Billing & Collection -Billing for the fee and database updates were
extensive during the fiscal year. During the initial billing cycle due to database and
software glitches a small amount of billing errors occurred and the staff time and
overhead related to reprinting of bills in the amount of $2,012.46 was deducted from
total staff charges in Table 1.
• Rent Review Administration -From time to time, staff receives inquiries from residents
regarding the legality of ]ease terms and rental fees. During this fiscal year, staff
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Table 1
FY 2012/2013 BUDGET SUMMARY
May 21, 2013, Item 7
Page 4 of 5
investigated vazious rental increases, including one that resulted in staff intervention to
rectify a rental increase dispute at an administrative level.
Initial Yeaz/One-Time Expenses -
• Administration of Chapter 9.50 Administrative Fee - Extensive outreach and
educational activities, as identified above, were provided during the initial set-up yeaz.
^ Policy Updates -Amendments to Chapter 9.50 and the Administrative Fee Regulations
were brought forward to City Council in Februazy 2013 to streamline administration.
• Request for Qualifications ("RFQ) -Staff prepazed an RFQ and is currently soliciting
proposals for on-call rate of return experts and Member of the Appraisal Institute
("MAI") appraisers.
Experts
During FY 13 the City did not receive any notice of rental increases above the annual
permissive rate or associated petitions. Therefore, no rent review hearings or hiring of experts
was necessary. These funds will be tamed over to FY 14 as a contingency for hiring of
experts if a second rent review case is needed.
Collection
Staff chazges from the City's Finance Department for fee collection and processing totaled
$5,924. Staff anticipates the number of transactions decreasing in FY 14 due to the
elimination of the option to pay in two installments. All staff time associated with the
collection of fees will be budgeted under "staff chazges" in future fiscal yeazs.
Administrative Costs
During FY 13, the City's Finance Department changed $396.06 for envelopes used for the
billing process and $120.44 for publication of this heazing notice.
FY 14 Budget and Administrative Fee
While staff does not anticipate the same level of administrative activities in FY 14, staff
remains concerned regarding the potential for rent review hearings in the coming fiscal year.
As reported previously, the majority of previous rent review cases have occurred when pazk
ownership has changed. In the past yeaz, five (5) pazks within Chula Vista have changed
ownership, as follows: Bayside Trailer Park, Broadway Trailer Pazk, Cabrillo Mobile Lodge,
Chula Vista Mobilehome Park, and Terry's Mobile Park.
With this lazge number of pazks changing ownership, staff is anticipating more than one rent
review case in the coming year. A fund balance of $29,351 would be available to hire experts
and cover staff time to prepare and hold one additional rent review case, if necessary.
Staff is recommending the fee remain at $60 for FY 14 and anticipates a similaz level of
collection. Table 2 provides a summary of the FY 14 budget.
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May 21, 2013, Item ~
Page 5 of 5
Table 2
FY 2013/2014 BUDGET
Revenues:
FY 12/13 carry over
Revenuesl2,166 @
Expenditures:
Staff Charges $102,000
Experts $25,000
Postage $1,000
Office Supplies $500
sting & Binding $1,500
DECISION MAKER CONFLICT
$29,351
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, there is no conflict
because any material financial effect is not reasonably foreseeable within the meaning of
FPPC regulation 18706.
CURRENT YEAR FISCAL IMPACT
The administrative fee established a new Mobilehome Park Space Rent Review
Administrative Fee fund for FY 13 to reimburse the City for all staff time and other costs
associated with administering Chapter 9.50. Appropriations for this fund are included in the
Third Quarter Financial Report, which is scheduled to be brought to Council on May 28`h. It
is projected that this fund will have an available fund balance of $29,351 that will be restricted
for rent review case related expenses.
ONGOING FISCAL IMPACT
The proposed FY 14 budget reflects the revenues and expenditures for this program.
ATTACHMENTS
1. Master Fee Schedule
Prepared by: Stacey Kurz, Senior Project Coordinator,
Development Services Department, Housing Division
7-5
ATTACHMENTI
~`~ ~~ MPS I tR FEE 5CH EDULE
Chapter 18 - Mobilehomes
~` General Fees ~ ~
CITY OF City of Chula Vista Development Services
~ CHUTA VISTA 276 Fourth Avenue, Chula Vista, CA 91910
MOBILEli0N1E::< PARK'" SPACE ' RENT
RE1(lEW ADMINISTRATIVE FEE ', `°
An administrative fee is required of all households
residing in eligible mobilehome spaces to receive
the benefits and services provided in Chapter 9.50
of the Chula Vista Municipal Code, Mobilehome
Park Space Rent Review.
The administrative fee is assessed annually, with
s~;.:,~.;-payments due 9~-and
"~`'.~='9~,by July 1st.
h ~.ll h.. .... L. L+ !I .. Gl10/ f h
Payments received after these-this dates shall be
considered delinquent and assessed a delinquent
payment penalty if received within 60 davs of such
due date, as detailed below.
Annual fee, per mobilehome space ................... $60
Sena+an~ua!#ee .......................-~8°5e~arinual-flee
Delinquent payment penalty, per occurrence .. $10
City of Chula Vista www.chulavistaca.gov 619.585.5600
7-6
RESOLUTION NO. 2013-
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA AMENDING CHAPTER 18 (MOBILEHOMES)
OF THE CITY'S MASTER FEE SCHEDULE, INCLUDING
SETTING THE FEE AT $60 FOR FISCAL-YEAR 2014
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 a limited segment of the public, specifically mobilehome residents,
per 9.50.030, the ability to obtain 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, on February 14, 2012 the City adopted "Mobilehome Park Space -Rent
Review Administrative Fee Regulations" establishing a process for determining and collecting
such fee; and
WHEREAS, the proposed fee does not exceed the estimated reasonable cost of providing
the associated services; and
WHEREAS, Article XIII C of the California Constitution requires a vote of the electorate
to increase any levy, charge, or exaction imposed by a local.government, unless specifically
exempted; and
WHEREAS, pursuant to the provisions of Article XII C, the proposed fees are exempt
from the vote requirement; and
WHEREAS, the proposed amendment to the Master Fee Schedule Chapter 18
(Mobilehomes) shall become effective upon adoption of this Resolution by the City Council.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula
Vista does hereby amend Chapter 18 (Mobilehomes) of the City's Master Fee Schedule as
reflected on Exhibit 1 to this Resolution and sets the fee as $60 for Fiscal-Year 2014.
Presented by:
Gary Halbert, P.E. AICP
Assistant City Manager/Director of
Development Services
Approved as to form by:
i i~~h / v ~'
Glen R. Googins
City Attorney
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EXHIBIT 1
~~~~~ MASTER FEE SCHEDULE
Chapter 18 - Mobilehomes
~` General Fees ~ ~
COY ~ City of Chula Vista Development Services
CHULA VISTA 276 Fourth Avenue, Chula Vista, CA 91910 „_
'IVIOBILfHUME ~~AARK ;..SPACE'~`~ RENT
.REVIEW ADMINlSTf~ATIUE FEE s. '°
~~~._. M__~n u~M..-.~, ~ ~_.~. _...
An administrative fee is required of all households
residing in eligible mobilehome spaces to receive
the benefits and services provided in Chapter 9.50
of the Chula Vista Municipal Code, Mobilehome
Park Space Rent Review.
The administrative fee is assessed annually, with
payments due by July 1~t. Payments received after
this date shall be considered delinquent and
assessed a delinquent payment penalty if received
within 60 days of such due date, as detailed
below.
Annual fee, per mobilehome space ................... $60
Delinquent payment penalty, per occurrence .. $10
City of Chula Vista www.chulavistaca.gov 619.585.5600
7-8
_ F~
._,
7/1999 - 6/2000
PROJECT ACCOUNTING
APPROVED STAFF TIME HA002
Several cases carried over
7/2000 - 6/2001
None until
2004 - 2005
2006 - 2007
None until
$ 88,709
119,187
45,628
I-4em ~`~
~cv~ ny Vai,~9 ~h
17,000 Fair rate of return expert
89,345
2009 - 2010 Brentwood zoo Sp.~
2011 2 change of ownership cases
both settled at one hearing.
Totaling
96,171 New park owner
$ 456,040 over a 12 year period
That is an average of only $ 38,003 per year including Change of
Ownership cases. For residents not parks.
10 were Change of Ownership cases and we no longer have the ability
to challenge those.
So they need removed from upcoming expenses, which leaves only 6
cases for existing residents.
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