HomeMy WebLinkAboutAgenda Statement 1989/04/13 Item 13 COUNCIL AGENDA STATEMENT 13
Item
Meeting Date yAPi/e/
ITEM TITLE: Ordinance 3c Amending Chapter 9.50 of the Municipal
Code relating to rental mobilehome park
SUBMITTED BY: Acting Commu ity Development Director
City Attorne4' SL:;C D ,J1C a D rLC'_T i011
REVIEWED BY: City Manager �` � (4/5ths Vote: Yes No X )
Council Referral Nos. 1367, 62 and 1475
On March 28, 1989, the Council approved a number of changes to the City's
Mobilehome Space Rent Binding Arbitration Ordinance. At that time, Council
referred the Ordinance back for additional changes which would delete the
requirement for the park owner and residents to negotiate prior to going to
arbitration. The substantive nature of the changes requires a new first
reading of the Ordinance. Staff has prepared two alternatives for Council
consideration. The only difference between the two alternatives is that
Alternative 1 requires that the owner conduct a meeting which may be attended
on a voluntary basis by residents to discuss the increase. It is hoped that
the meeting will facilitate voluntary settlement between the parties.
Alternative 2 does not require such a meeting. Staff recommends Alternative 1 .
RECOMMENDATION: That the Council place on the first reading Ordinance .2306
(Alternative 1 ) which amends Chapter 9.50 of the City's Municipal Code.
OR. . .
That the Council place on the first reading Ordinance (Alternative 2)
which amends Chapter 9.50 of the City 's Municipal Code.
BOARDS/COMMISSIONS RECOMMENDATION: On March 28, 1989, the Mobilehome Issues
Committee approved changes discussed in Sections 1 , 2 and 3 below, but has not
considered subsequent changes as requested by the Council at the meeting of
March 28, 1989.
DISCUSSION:
On March 28, 1989, the Council approved a number of changes to the Ordinance
but requested staff to further revise other provisions. Because of the
extensiveness of the changes requested, the item before you today is a first
reading of the Ordinance rather than a second reading as was anticipated at
the Council meeting of March 28, 1989. You have two alternative ordinances to
consider. The two are the same in nearly all respects, including those
changes listed in Sections 1 through 4, below. The two alternatives differ
only with respect to a single requirement that the owner have an informal
meeting to discuss the increase with the residents. The Council desired to
reduce the requirements placed on residents in order to go to arbitration.
There were Council comments expressing concern over completely deleting
negotiations entirely. Based on these concerns, staff is providing the
Council with these two alternatives. This difference is more thoroughly
discussed in Section 5 below.
Sections 6 and 7 below discuss additional changes requested by the Council
regarding the rent increase notice and conforming the arbitration provisions
related to the sale of a mobilehome to the other provisions of the ordinance.
Page 3, Item 13
Meeting Date9O S/E9
Alternative 1 , which is recommended by staff, requires the owner in the
rent increase notice to set a time for an informal meeting with the
affected residents between 5 and 10 days after the notice is given. There
is, however, no requirement that the residents attend this meeting. The
meeting is only proposed to provide a forum where possible voluntary
negotiations might begin. Alternative 2 has no requirement for any such
meeting by the owner. Although Alternative 1 has the requirement of a
meeting, this requirement does not make the arbitration process any slower
than Alternative 2.
Under both alternatives the residents retain their right to arbitrate
provided that a deposit of 25% of the estimated cost of arbitration is
made with the City. Under both alternatives, at any time before or during
arbitration , the process can end if more than 50% of the affected
residents agree to a settlement of some kind. Alternative 1 facilitates
voluntary negotiation and possible settlement more readily. Both
alternatives provide residents with an easy method of entering
arbitration. The arbitration process under either alternative would not
begin until the City forwarded the parties' deposit to the American
Arbitration Association, which would occur no sooner than the 20th day
after the notice. The owner's portion (75%) of the deposit shall be due
to the City seven ( 7) days after the City 's notification that the
residents have made their deposit.
6. Owner's Rent Increase Notice
Under both alternatives, the owner is required to include specific
language from the ordinances which advises the residents of their right to
arbitrate, the requirements for starting the arbitration process and, in
the case of Alternative 1 , the time and place of the owner's meeting.
7. Rent Increase at Time of Sale of Mobilehome
The Council requested that this provision conform with the rest of the
Ordinance. Staff has made changes to accomplish this. Both alternatives
provide for either the incoming or outgoing mobilehome owner to arbitrate
a rent increase which will be imposed when a mobilehome is sold. Under
the proposed language, the mobile home seller may request a statement from
the park owner of the amount of the intended increase. If the increase is
above the applicable CPI, the outgoing or incoming resident shall have 30
days from the latter of a) the date of receipt of the park owner's
statement of increase, or b) the date of execution of a contract for sale
between the incoming and outgoing resident, to place a deposit for
arbitration with the City.
FISCAL IMPACT: Not applicable.
WPC 4037H
by he City Council of
Chula Vista, C. lifornia
Dated