HomeMy WebLinkAboutCC Reso 2020-26 - Amending Ex A to Reso 2019-42 RE Rent Stabiliation for Mobilehome Parks RESOLUTION NO. 2020-26
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF UKIAH AMENDING EXHIBIT A TO
RESOLUTION 2019-42 ADOPTING RENT STABILIZATION FEES FOR ARBITRATION AND
ADMINISTRATIVE COSTS TO CITY OF UKIAH MOBILEHOME PARKS
WHEREAS:
1. Ukiah City Code ("UCC") Section 2715, provides that "all or any portion of the costs to
administer this chapter [Division 2, Chapter 8 of the UCC ("Chapter 8")] may be collected
by the imposition of an annual rent stabilization administration fee established by
resolution of the City Council"; and
2. Costs to administer the program have been assessed and are shown in Exhibit A; and
3. With the elimination of redevelopment agencies by the State of California, all of the cost
to administer Chapter 8 is borne by the City's General Fund; and
4. Under UCC Section 2708.C, the cost of arbitrations must be paid from the rent stabilization
administration fee. Exhibit A states a reasonable estimate for the annual cost to administer
Chapter 8, including potential arbitrations; and
5. There are 382 mobilehome park spaces subject to rent control in the City of Ukiah, with
the final annual per space cost being determined each year based on occupied non-long-
term leased spaces; and
6. Under UCC Section 2715, the owner who pays these fees may pass through to the tenant
of the space 50 percent of the fees assessed for the space: and
7. Under UCC 2715, the resolution establishing the fee must specify the date by which the
fee is due, but the fee may be paid by the park owners in quarterly installments; and
8. There are six City of Ukiah mobilehome parks that are subject to the Rent Stabilization
Ordinance, including Circle Trailer Court (60 units), Manor Home Mobile Estates (137
units), Shady Grove Mobile Home Park (4 units subject to rent control), Modern Mobile
Home Park (26 units), Harold's Square Mobile Home Park (59 units), and Rancho Del Ray
Mobile Home Park (96 units).
NOW, THEREFORE, BE IT RESOLVED that:
1. The City Council of the City of Ukiah approves an annual administration fee an amount
equally divided between billable spaces subject to rent control to be paid by the City's six
mobilehome parks.
2. The fee is due on July 30 of each year, but may be paid in quarterly installments on July
30, October 30, January 30, and April 30.
3. The City Council shall review the administration costs, including the cost of any
arbitrations, on an annual basis, during budget preparation as part of the annual fee review
1
in May and June, and make any adjustments so that the fee does not exceed the cost to
administer Chapter 8.
4. This resolution supersedes resolution 2019-42.
PASSED AND ADOPTED at a regular meeting of the City Council held on May 20, 2020, by the
following roll call vote:
AYES: Councilmembers Mulheren, Brown, Scalmanini, Orozco, and Mayor Crane
NOES: None
ABSENT: None
ABSTAIN: None
Douglas F ran , Mayor
ATTEST:
Kri tine Lawler, City Clerk
2
EXHIBIT A
2020 COST ASSESSMENT FOR IMPLEMENTING RESOLUTION 2020/2021 RENT STABILIZATION FEES
Estimated Arbitration Costs:
TOTAL -$9,450
The Northern California rates charged for arbitrations conduct by ADR Service, Inc., an alternate dispute resolution service that has rates in
the middle between JAMS at the high end and Ione arbitrators at the low end.
An arbitration through ADR includes a $450 administrative fee, plus the hourly or daily rate charged by the arbitrator and the fees charged
by ADR. ADR arbitrators are retired judges or attorneys. The hourly rates vary from $450 at the low end to $975 at the high end. The
average hourly rate is $712.50.
Assuming an arbitration hearing takes one 8-hour day and the arbitrator takes 4 hours to prepare a written decision, 12 hours @ $712.50 =
$8,550+ $900 (admin fee, assuming only two parties) for a total of$9,450.
Estimated Administrative Costs:
TOTAL - $1,850 (Using the higher rate of the two invoiced rates below and rounding)
MHP = Mobile Home Park
Estimated Attorney Fees for Various Matters Pertaining to Mobilehome Parks: $1,000
(Note. only the actual expenses would be billed to the account)
Educational Outreach Costs: $294 (rounded)
• Draft Letter to Residents
• Print, fold, label, and stuff envelopes
• Postage to send letters
If MHP owners are invoiced: $556 (rounded and includes postage)
Includes:
• Review CPI and write annual letter to MHP owners regarding the CPI.
• Review MHP rent increase letters per Ordinance 1126. Section 2703(H)
• Staff Report to Council
• Send Letters to MHP owners requesting number of billable spaces
• Prep invoices
• Receive and process payments
Total divided by 382" spaces = $1.46 per space.
If MHP owners are not invoiced: $201
Includes:
• Review CPI and write annual letter to MHP owners regarding the CPI.
• Review MHP rent increase letters per Ordinance 1126, Section 2703(H)
• Staff Report to Council
• Send post-Council decision to waive fee letters to MHP owners
Total divided by 382*spaces= .53 cents per space (rounded).
TOTAL REASONABLE ESTIMATE FOR THE ANNUAL COST TO ADMINISTER CHAPTER 8, INCLUDING POTENTIAL
ARBITRATIONS IS $11,300**.
*Note— This is the number of spaces calculated in Ordinance 1126, however, the actual number of billable spaces is determined each year
depending on the number of occupied spaces by non-long-term leases.
**Note— This number is comprised as follows.Arbitration= $9,450; MHP Owners invoiced= $556; Educational Outreach= $294;Attorney
Fees = $1,000.