Regular Meeting of the Calimesa City Council
Monday, October 20, 2025
CALL TO ORDER
ROLL CALL: MAYOR MOLINA, MAYOR PRO TEM CERVANTEZ, COUNCIL MEMBER CUNDIEFF, COUNCIL MEMBER GARCIA AND COUNCIL MEMBER MANLY.
STAFF: CITY MANAGER KOLBOW, CITY ATTORNEY FLOWER, DEPUTY CITY CLERK
BENSON, FINANCE DIRECTOR REID, PLANING DIRECTOR LUCIA, PUBLIC
WORKS DIRECTOR SHAKIR, CITY ENGINEER THORNTON, FIRE DEPUTY CHIEF SHAW AND SHERIFF CAPTAIN NORTHRUP.
PLEDGE OF ALLEGIANCE
COMMUNICATIONS FROM THE PUBLIC
Pursuant to the Brown Act, this is the opportunity for members of the public to directly address the Council on any item within the Council’s subject matter jurisdiction. Please note that this is also the time in which members of the public may address the Council on any item on the Consent Calendar. This is not the time for City Council discussion of non-agenda items. After receiving public comments, Council Members, or staff, after being recognized by the Mayor, may briefly respond to statements made by the public or questions posed by the public. In addition, Council Members may ask questions for clarification or make a referral to staff for factual information to be reported back to the Council at a later meeting.
APPROVAL OF THE AGENDA, CONSENT CALENDAR AND WAIVER OF FULL READING OF ORDINANCES This is the time for the City Council to notify the public of any changes to the agenda; such as removal of an agenda item, rearrangement of the agenda, postponement of an agenda item or continuance of an item to a future meeting. This is also the time for the City Council to remove items from the Consent Calendar for individual consideration. Waiver of full reading of ordinances does not take policy action or approve or disapprove any ordinances on the agenda, it simply means that the entire text of the ordinance will not be read.
RECOMMENDATION: Move to approve the agenda, consent calendar and waive full reading of ordinances.
Motion________________________ Second_______________________ Vote___________________________ Regular Meeting of the Calimesa City Council
Meeting Agenda
Monday, October 20, 2025 – 6:00 p.m.
Norton Younglove Multipurpose Senior Center
908 Park Avenue, Calimesa, CA 92320
Linda Molina, Mayor Jeff Cervantez, Mayor Pro Tem
Eric Cundieff, Council Member Edgar Garcia, Council Member John Manly, Council Member Will Kolbow, City Manager Steven Flower, City Attorney The Calimesa City Council will be conducting this meeting in the Norton Younglove Senior Center. Members of the public may attend this meeting in person at the Norton Younglove Senior Center, 908 Park Avenue, Calimesa, CA 92320, or the public may view the City Council meetings live at https://www.youtube.com/@calimesacity900/live beginning at 6:00 p.m.
Submission of Public Comments: Public comment will be allowed by completing a speaker slip and providing it to the City Clerk at the meeting. Please observe a time limit of three (3) minutes when giving your presentation. When called upon, please step forward to the microphone, state your name for the record, whom you represent and any statement you wish to make. Please be advised that you may not defer your three (3) minutes to another speaker.
In compliance with the Americans with Disabilities Act, if you need special assistance to participate in a City meeting or other services offered by this City, please contact the City Clerk’s Office, (909) 795-9801. Notification of at least 48 hours prior to the meeting or time when services are needed will assist the City staff in assuring that reasonable arrangements can be made to provide accessibility to the meeting or service. Any public writings distributed by the City to at least a majority of the Council Members regarding any item on this regular meeting agenda will be made available at the public counter at City Hall located at 908 Park Avenue, Calimesa, CA 92320.
Regular Meeting of the Calimesa City Council
Monday, October 20, 2025
CONSENT CALENDAR (Items 1 – 9)
The following items on the Consent Calendar are routine and customary items and are enacted by a single motion, with the exception of items previously removed during “Approval of the Agenda” for individual consideration. Any items removed shall be individually considered immediately after taking action on the Consent Calendar.
1. APPROVAL OF CITY COUNCIL ACTION MINUTES.
a) There are no minutes ready for approval at this time
2. RECEIVE AND FILE CITY COMMISSION & BOARD MINUTES.
a) Library Commission action minutes of the September 2, 2025 regular meeting. b) Planning Commission action minutes of the June 23, 2025 special meeting.
3. APPROVAL OF WARRANT REGISTERS.
a) Check Register Report with a total of $532,047.52(Check Nos. 44306-44355) b) October 9, 2025 Payroll of $136,587.66
4. COUNCIL TRAVEL EXPENSES.
RECOMMENDATION: That the City Council move to approve the Council Travel Training and Meeting/Mileage Expenses Report through September 30, 2025.
5. APPROVE 2nd READING BY TITLE ONLY AND ADOPT ORDINANCE NO. 410, AN
ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CALIMESA, CALIFORNIA AMENDING SECTIONS 9.05.030, 9.05.040, 9.05.050, 9.05.090, 9.05.100, 9.05.110, 9.05.120,
9.05.140 AND 9.05.180 OF THE CALIMESA MUNICIPAL CODE RELATED TO THE MOBILE
HOME PARK RENT STABILIZATION PROGRAM PERTAINING TO THE IMPLEMENTATION
OF A HEARING OFFICER PROCESS AND REPEAL OF THE MOBILE HOME RENT STABILIZATION BOARD.
RECOMMENDATION: That the City Council approve 2nd reading by title only and adopt Ordinance No. 410, an Ordinance of the City Council of the City of Calimesa, California amending sections
9.05.030, 9.05.040, 9.05.050, 9.05.090, 9.05.100, 9.05.110, 9.05.120, 9.05.140 and 9.05.180 of the Calimesa Municipal Code related to the Mobile Home Park Rent Stabilization Program pertaining to the implementation of a hearing officer process and repeal of the Mobile Home Rent Stabilization Board.
6. TREASURER’S REPORT FOR THE MONTH ENDED AUGUST 31, 2025.
RECOMMENDATION: That the City Council receive and file the Investment Report for the month ended August 31, 2025.
7. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CALIMESA, CALIFORNIA, REPLACING RESOLUTION NO. 2025-36 AND ESTABLISHING ADMINISTRATIVE RULES
FOR THE IMPLEMENTATION OF THE CALIMESA MOBILE HOME RENT STABILIZATION ORDINANCE.
RECOMMENDATION: That the City Council adopt Resolution No. 2025-54 a Resolution of the City Council of the City of Calimesa, California amending the Administrative Rules and Regulations for the Implementation of the Calimesa Mobile Home Rent Stabilization Ordinance(Chapter 9.05 of the Calimesa Municipal Code) and superseding and repealing Resolution No. 2025-36.
8. FIRE DEPARTMENT VEHICLE EMERGENCY EQUIPMENT AND ELECTRONICS
OUTFITTING AND WAIVER OF FORMAL BIDDING FOR THE SPECIFIED DESIGN BUILD TO BE AWARDED TO THE JOHNSON EQUIPMENT COMPANY.
RECOMMENDATION: That the City Council approves the purchase and installation of the specified hardware, wiring, and emergency warning equipment, including lights, siren, mounting brackets, radios, computers, and battery charging inverter equipment, necessary to complete the
Regular Meeting of the Calimesa City Council
Monday, October 20, 2025
fabrication and construction of the previously approved 2025 truck for service as a Fire Department Squad Vehicle. Waiving the formal bidding process.
9. FIFTH AMENDMENT TO AGREEMENT FOR 6th CYCLE HOUSING ELEMENT UPDATE
CONSULTING SERVICES (TO INCLUDE A SAFETY ELEMENT UPDATE) BETWEEN THE CITY OF CALIMESA AND KIMLEY-HORN AND ASSOCIATES, INC (“CONSULTANT”).
RECOMMENDATION: That the City Council approve the Fifth Amendment for 6th Cycle Housing Element update consulting services (to include a Safety Element update), between the City of Calimesa and Kimley-Horn Associates, Inc. and authorize the Mayor to execute the Agreement
CALIMESA CHAMBER OF COMMERCE REPORT
BUSINESS ITEMS
10. CONSIDERATION OF AUTHORIZATION TO ISSUE REQUEST FOR PROPOSALS (RFP) –
DESIGN AND INSTALLATION OF VIDEO SURVEILLANCE SYSTEM AT SUMMERWIND PARK.
RECOMMENDATION: That the City Council:
1) Review the attached Request for Proposals (RFP) for Design and Installation of Video Surveillance at Summerwind Park.
2) Provide direction to staff on whether to proceed with issuance of the RFP. 3) If Council elects to proceed, provide any desired modifications or additional requirements to be included prior to release..
MAYOR & COUNCIL MEMBER REPORTING OF COUNTY & REGIONAL MEETINGS/CONFERENCES This is the time for general comments, announcements, reports on meetings attended at public expense as required by AB 1234, requests of staff, and other issues of concern to Council Members may be presented briefly at this time. The Council may not legally take action on any item presented at this time other than to direct staff to investigate a complaint or place an item on a future agenda unless (1) by a majority vote, the Council determines that an emergency situation exists, as defined by Government Code § 54956.5 or (2) by a four-fifths vote, the Council determines that there is a need for immediate action and the need for action arose subsequent to the agenda being posted as required by Government Code § 54954.2(b).
CITY MANAGER COMMENTS & REPORTS
CLOSED SESSION ITEMS
A. CONFERENCE WITH REAL PROPERTY NEGOTIATORS
Pursuant to Government Code Section 54956.8
Property: 1055 Calimesa Blvd., Calimesa, CA City/Agency Negotiators: Will Kolbow, City Manager.
Negotiating Parties: Bank of America National TR & SVGS Assn.
Under Negotiations: Price and Terms for acquisition of property by City
ADJOURNMENT
Adjourn to the Regular Meeting of the City Council on Monday, November 3, 2025 at 6:00 p.m.
City Council Meeting
Agenda Report
Agenda Item No. 1
SUBJECT: APPROVAL OF CITY COUNCIL MEETING MINUTES
MEETING DATE: October 20, 2025
PREPARED BY: Darlene Gerdes, Deputy City Manager/City Clerk There are no minutes ready for approval at this time
City Council Meeting
Agenda Report
Agenda Item No. 2
SUBJECT: APPROVAL OF COMMISSION MEETING MINUTES
MEETING DATE: October 20, 2025
PREPARED BY: Darlene Gerdes, Deputy City Manager/City Clerk RECOMMENDATION: That the City Council approve the action minutes as presented for the Library Commission regular meeting of September 2, 2025 and the Planning Commission special meeting of June 23, 2025.
ATTACHMENTS:
Attachment A: Library Commission action minutes of September 2, 2025.
Attachment B: Planning Commission special minutes of June 23, 2025.
Attachment 2B
City Council Meeting
Agenda Report
Agenda Item No. 3
SUBJECT: APPROVAL OF WARRANT REGISTER
MEETING DATE: October 20, 2025
PREPARED BY: Celeste Reid, Finance Director
RECOMMENDATION: That the City Council approve the Warrant Register as presented.
SUMMARY: The attached Check Register Report for City Council’s approval is as follows:
a) Check Register Report with a total of $532,047.52 (Check Nos.44306-44355) b) October 9, 2025 Payroll of $136,587.66
Fund 1 $ 136,768.18
Fund 24 $ 7,137.94
Fund 36 $ 356,707.52
Fund 39 $ 949.00
Fund 47 $ 1,610.94
Fund 49 $ 943.45
Fund 51 $ 2,187.68
Fund 52 $ 934.10
Fund 53 $ 943.45
Fund 54 $ 934.10
Fund 55 $ 6,338.49
Fund 56 $ 7,177.63
Fund 57 $ 5,105.94
Fund 59 $ 934.10
Fund 76 $ 3,375.00
Total $ 532,047.52
Grand Total $ 532,047.52
CFD 2013-1B Maintenance
CFD
Information Technology Fund
CFD
CFD
CFD
CFD
CFD 2012-1B Maintenance
CFD
CFD
Park Improvement
Traffic Improvement
CFD
Gas Tax
Accounts Payable - Checks 44306 - 44355
Fund Distribution Breakdown
Council Date - October 20,2025
General Fund
10/15/2025
Attachment 3A
44306
44307
44308
44309
44310
44311
44312
44313
44314
44315
44316
44317
44318
44319
44320
44321
44322
44323
44324
44325
44326
44327
44328
44329
44330
44331 10/07/2025 CA BUILDING STANDARDS
COMMISSI
Jul - Sep 25_Freen Fee
143.10
10/07/2025 BURGESON'S HEATING & AIR,
INC.
HVAC Maintenance_FD_City Hall_
179.00
10/07/2025 ARNOLD'S BACKFLOW Backflow Certification
1,080.00
10/07/2025 AMERIFLEX Oct 25_Admin
60.00 10/07/2025 8X8 INC. sEP 25_pHONE sYSTEMS
710.77
10/01/2025 TYLER TECHNOLOGIES, INC Project Management
1,500.00
10/01/2025 MERRELL JOHNSON Aug 25 Geotech Inspection
949.00
10/01/2025 INTEGRITY ARBORIST Sep 25 JP Ranch Weed Abatement 5,316.00
10/01/2025 EXECUTIVE FACILITIES
SERVICES,
Sep 25 Janitorial
2,503.32
10/01/2025 YUNEX, LLC Aug 25_Call Outs
872.00
10/01/2025 WILL KOLBOW Oct 25_Phone Reimbursement
100.00
10/01/2025 VISION SERVICE PLAN - CA Oct 25_Premiums
354.40
10/01/2025 UNDERGROUND SERVICE
ALERT
Sep 25_CA State Fee_New Ticket
123.09
10/01/2025 TITAN REAL ESTATE GROUP Facility Use_1103 Calimesa Blv 773.34
10/01/2025 ROGERS, ANDERSON, MALODY
&
FY 25_Audit Services
13,400.00
10/01/2025 ROGERS EXHAUST SHOP Sep 25_PW_Vehicle Maintenace 3,688.57
10/01/2025 RIVERSIDE COUNTY SHERIFF
TECH
RMS/CLETS FY 25_Reissue
16,815.00
10/01/2025 MCCI,LLC FY 25/26_Support & Training
6,392.75
10/01/2025 JOHNATHAN MANLY Oct 25_Phone Reimbursement
55.00 10/01/2025 JEFF CERVANTEZ Oct 25_Phone Reimbursement
55.00 10/01/2025 INLAND EMPIRE LANDSCAPE,
INC
Sep 25 Landscape & Irrigation
927.50
10/01/2025 FRONTIER Sep 25_Sr Center Internet
161.26
10/01/2025 CHARLES ABBOTT ASSOC, INC Aug 25 Pro Services 15,927.42
10/01/2025 CELESTE REID FSA Medical Reimbursement
55.00 10/01/2025 BETHANY CONSTRUCTION Aug 25_Consultation 44,810.00
Check Description Amount
BANK OF AMERICA Checks
10/01/2025 ALOHA PLUMBING &
MAINTENANCE
Sr Center Repairs
950.00
Check
Number
Check
Date
Vendor Name
Check Register Report
City of Calimesa BANK OF AMERICA Page: 1
44332
44333
44334
44335
44336
44337
44338
44339
44340
44341
44342
44343
44344
44345
44346
44347
44348
44349
44350
44351
44352
44353
44354
44355
50 Grand Total (excluding void checks): 532,047.52
50 Checks Total (excluding void checks): 532,047.52
50 Bank Total (excluding void checks): 532,047.52
10/07/2025 THE COUNSELING TEAM Oct 25 Employee Support Svcs 735.00
10/07/2025 MUNICIPAL FINANCE OF
MERIDIAN
Sep 25 Finance Consultant
1,875.00
10/07/2025 MNS ENGINEERS, INC Aug 25 PSE Cherry Valley
356,707.52
10/07/2025 GARDEN HILLS LANDSCAPE Sep 25 Landscape Maintenance 10,350.00
10/07/2025 DAVID TURCH AND
ASSOCIATES
Aug & Sep 25 Lobby Serv
5,000.00
10/07/2025 ACTIVE IT SOLUTIONS Oct 25 IT Mng Services
6,265.40
10/07/2025 SUPERIOR AUTOMOTIVE
WAREHOUSE,
Aep 25_FD_Repairs & Maint
948.18
10/07/2025 SOCAL GAS Sep 25_Services
214.91
10/07/2025 SHARPLINE SOLUTIONS, INC Sep 25_Sign Posts
3,642.85
10/07/2025 RENE'S COMMERCIAL
MANAGEMENT
Sep 25_Gopher Control in City
1,050.00
10/07/2025 RAAD ABASI Reimbursement EMT Certificatio
97.00 10/07/2025 ODP BUSINESS SOLUTIONS,
LLC
Sep 25_Office Supplies
103.53
10/07/2025 MICHAEL ALLEN Business License Refund
238.90
10/07/2025 KOPPEL & GRUBER PUBLIC
FINANCE
Public Services CFD No. 1 July
11,976.38
10/07/2025 KONICA MINOLTA Sep 25_Equipment Rental PW/Eng 414.23
10/07/2025 KIRBY MAUS Sep 20 - Oct 03, 2025
200.00
10/07/2025 JTE Sr. Center Led Lights
3,000.00
10/07/2025 JOSHUA PAEZ Sep 20 - Oct 03, 2025
100.00
10/07/2025 IMAGETREND, INC. Sep 25_FD_Maintenance
2,774.38
10/07/2025 HINDERLITER DELLAMAS &
ASSOC
Jul - Sep 25 Sales Tax Svcs
1,746.46
10/07/2025 FRONTIER Sep 25_Fax
223.67
10/07/2025 FAMILY SERVICE ASSOCIATION May 25_Contract Services 5,000.00
10/07/2025 DAMIAN RUBIO Sep 20 - Oct 03, 2025
100.00
10/07/2025 CR&R, INC. 2024-2025 Delinquent Trash
1,382.59
City Council Meeting
Agenda Report
Agenda Item No. 4
SUBJECT: COUNCIL TRAVEL, TRAINING AND MEETING/MILEAGE
EXPENSES
MEETING DATE: October 20, 2025
PREPARED BY: Darlene Gerdes, Deputy City Manager/City Clerk RECOMMENDATION: That the City Council approve the Council Travel, Training and Meeting/Mileage Expenses Report through September 30, 2025.
ATTACHMENTS:
Attachment A: Council Travel, Training and Meeting/Mileage Expenses Report through September 30, 2025.
FISCAL YEAR 2025-26
COUNCIL TRAVEL AND MEETING/MILEAGE EXPENSES
ATTACHMENT 4A
MEETING/MILEAGE 01-1100-7590
DATE DESCRIPTION AMOUNT DATE DESCRIPTION AMOUNT
10-Sep Beaumont State of the City $ 75.00
TOTAL TRAVEL/TRAINING $ - TOTAL MEETING/MILEAGE $ 75.00 REMAINING BALANCE $ 1,450.00 REMAINING BALANCE $ 525.00 MEETING/MILEAGE 01-1100-7590
DATE DESCRIPTION AMOUNT DATE DESCRIPTION AMOUNT
10-Sep Beaumont State of the City $ 75.00
TOTAL TRAVEL/TRAINING $ - . $ 75.00
REMAINING BALANCE $ 1,450.00 REMAINING BALANCE $ 525.00
JEFF CERVANTEZ TRAVEL - MEETING/MILEAGE EXPENSES
TRAVEL/TRAINING 01-1100-7585
ERIC CUNDIEFF TRAVEL - MEETING/MILEAGE EXPENSES
TRAVEL/TRAINING 01-1100-7585
FISCAL YEAR 2025-26
COUNCIL TRAVEL AND MEETING/MILEAGE EXPENSES
ATTACHMENT 4A
MEETING/MILEAGE 01-1100-7590
DATE DESCRIPTION AMOUNT DATE DESCRIPTION AMOUNT
19-Aug LOCC Annual Conference - Oct 2025 $ 725.00 10-Sep Beaumont State of the City $ 75.00 TOTAL TRAVEL/TRAINING $ 725.00 TOTAL MEETING/MILEAGE $ 75.00 REMAINING BALANCE $ 725.00 REMAINING BALANCE $ 525.00
MEETING/MILEAGE 01-1100-7590
DATE DESCRIPTION AMOUNT DATE DESCRIPTION AMOUNT
1-Jul LOCC Annual Conference - Oct 2025 $ 675.00 10-Sep Beaumont State of the City $ 75.00 8-Sep LOCC Riverside Division Meeting $ 60.00
TOTAL TRAVEL/TRAINING $ 675.00 TOTAL MEETING/MILEAGE $ 135.00 REMAINING BALANCE $ 1,950.00 REMAINING BALANCE $ 600.00
LINDA MOLINA TRAVEL - MEETING/MILEAGE EXPENSES
TRAVEL/TRAINING 01-1100-7585
EDGAR GARCIA TRAVEL - MEETING/MILEAGE EXPENSES
TRAVEL/TRAINING 01-1100-7585
FISCAL YEAR 2025-26
COUNCIL TRAVEL AND MEETING/MILEAGE EXPENSES
ATTACHMENT 4A
MEETING/MILEAGE 01-1100-7590
DATE DESCRIPTION AMOUNT DESCRIPTION AMOUNT
TOTAL TRAVEL/TRAINING $ - TOTAL MEETING/MILEAGE $ -
REMAINING BALANCE $ 1,450.00 REMAINING BALANCE $ 600.00
JOHN MANLY TRAVEL - MEETING/MILEAGE EXPENSES
TRAVEL/TRAINING 01-1100-7585
City Council Meeting
Agenda Report
Agenda Item No. 5
SUBJECT: 2
ND READING BY TITLE ONLY AND ADOPTION OF ORDINANCE
NO. 410, AN ORDINANCE OF THE CITY COUNCIL OF THE CITY
OF CALIMESA, CALIFORNIA AMENDING SECTIONS 9.05.030,
9.05.040, 9.05.050, 9.05.090, 9.05.100, 9.05.110, 9.05.120,
9.05.140 AND 9.05.180 OF THE CALIMESA MUNICIPAL CODE
RELATED TO THE MOBILE HOME PARK RENT STABILIZATION
PROGRAM PERTAINING TO THE IMPLEMENTATION OF A
HEARING OFFICER PROCESS AND REPEAL OF THE MOBILE
HOME RENT STABILIZATION BOARD.
MEETING DATE: October 20, 2025
PREPARED BY: Darlene Gerdes, Deputy City Manager/City Clerk RECOMMENDATION: That the City Council approve 2nd reading, by title only and adopt Ordinance No. 410, AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CALIMESA, CALIFORNIA AMENDING SECTIONS 9.05.030, 9.05.040, 9.05.050, 9.05.090, 9.05.100, 9.05.110, 9.05.120,
9.05.140 AND 9.05.180 OF THE CALIMESA MUNICIPAL CODE RELATED TO THE MOBILE
HOME PARK RENT STABILIZATION PROGRAM PERTAINING TO THE IMPLEMENTATION OF
A HEARING OFFICER PROCESS AND REPEAL OF THE MOBILE HOME RENT STABILIZATION BOARD.
ATTACHMENTS:
Attachment A: Ordinance No. 410.
ORDINANCE NO. 410
AN ORDINANCE OF THE CITY OF CALIMESA CALIFORNIA UPDATING AND CLARIFYING PROVISIONS OF CHAPTER 9.05 OF THE CALIMESA
MUNICIPAL CODE PERTAINING TO MOBILE HOME RENT
STABILIZATION AND AMENDING THE CALIMESA MUNICIPAL CODE
PERTAINING TO THE IMPLEMENTATION OF A HEARING OFFICER
PROCESS AND REPEAL OF THE MOBILE HOME RENT
STABILIZATION BOARD
WHEREAS, the City Council of Calimesa (“City”) previously adopted Chapter 9.05, containing Sections 9.05.010 through 9.05.170 of the Calimesa Municipal Code, pertaining to Mobile Home Rent Stabilization (hereinafter the “Ordinance”), and further adopted Administrative Rules for the implementation of the Ordinance (the “Rules”); and WHEREAS, the City Council directed the issuance of a Request for Proposal seeking Mobile Home Rent Stabilization Hearing Officer services in place of the Mobile Home Rent Stabilization Board processes;
NOW THEREFORE THE CITY COUNCIL OF THE CITY OF CALIMESA DOES HEREBY ORDAIN AS FOLLOWS:
Section 1. The definition of “Appellant” in Section 9.05.030, “Definitions” of Chapter 9.05, “Mobile Home Rent Stabilization” of Title 9, “Public Peace, Morals and Welfare” of the Calimesa Municipal Code is hereby amended to read as follows:
“ “Appellant” means any park owner or park resident, or designated representative thereof, who files an appeal of a decision by the hearing officer on a capital improvement rent increase or special rent increase to the city council.” Section 2. The definition of “board” in Section 9.05.030, “Definitions” of Chapter
9.05, “Mobile Home Rent Stabilization” of Title 9, “Public Peace, Morals and Welfare” of the Calimesa Municipal Code is hereby repealed.
Section 3. The definition of “Consumer Price Index” or “CPI” of Section
9.05.030, “Definitions” of Chapter 9.05, “Mobile Home Rent Stabilization” of Title 9, “Public Peace, Morals and Welfare” of the Calimesa Municipal Code is hereby amended to read as follows:
“ “Consumer Price Index” or “CPI” means the Consumer Price Index for All Items in Riverside-San Bernardino-Ontario, CA, All Urban Consumers, not seasonally adjusted, published by the Bureau of Labor Statistics, U.S. Department of Labor, or any successor index.”
Attachment 5A
Section 4. The definition of “Hearing Officer” is hereby added to Section
9.05.030, “Definitions” of Chapter 9.05, “Mobile Home Rent Stabilization” of Title 9, “Public Peace, Morals and Welfare” of the Calimesa Municipal Code to read as follows:
“ “Hearing Officer” means the person established by this chapter to perform such duties as may be delegated by the city council.”
Section 5. Section 9.05.040, “Mobile Home Rent Stabilization Board” of Chapter 9.05, “Mobile Home Rent Stabilization” of Title 9, “Public Peace, Morals and Welfare” of the Calimesa Municipal Code is hereby repealed in its entirety and replaced by the following language adopted :
“9.05.040 Mobile Home Rent Stabilization Hearing Officer There shall be a hearing officer of hearing officers who shall be appointed by the City Council. Each hearing officer shall serve a term of three years or until their successor is appointed.”
Section 6. Section 9.05.050, “Powers and Duties” of Chapter 9.05, “Mobile Home Rent Stabilization” of Title 9, “Public Peace, Morals and Welfare” of the Calimesa Municipal Code is hereby amended in its entirety to read as follows:
“9.05.050 Powers and duties.
Within the limitations provided by law, the mobile home rent stabilization hearing officer shall have the following powers and duties:
A To hold meetings from time to time as requested by the mayor, the city council, the city manager, or upon the filing of a petition with the city clerk.
B. To examine any rental agreement submitted to the hearing officer by any party to the rental agreement for the purpose of determining whether the space is subject to rent control under this chapter when reviewing a petition for a rent increase under this chapter.
C. To receive, investigate, conduct hearings on and approve, conditionally approve or disapprove petitions for, or protests against, increases of rents in mobile home parks. All hearings of the hearing officer shall be open to the public.
D. To conduct such studies, surveys, investigations and public hearings and obtain such information as may be necessary to carry out their duties.
E. Subject to the approval of the city council, to adopt, promulgate, amend and rescind such administrative rules and regulations as the hearing officer finds reasonable and necessary for the conduct of their affairs and to implement and administer the provisions of this chapter.
F. Except where such rules are in direct conflict herewith, the hearing officer shall be subject to the regulations and standards of conduct for city commissioners, committee members, board members and hearing officers as established and amended from time to time by resolution of the city council.
G. To keep records of their proceedings which shall be submitted to the city council and open for inspection by the public.
H. To perform such other duties as may be delegated to the hearing officer by the city council.”
Section 7. Section 9.05.090, “Rent increase based on capital improvements” of Chapter 9.05, “Mobile Home Rent Stabilization” of Title 9, “Public Peace, Morals and Welfare” of the Calimesa Municipal Code is hereby amended in its entirety to read as follows:
“9.05.090 Rent increase based on capital improvements.
A petition for a rent increase based on the cost of a completed capital improvement may be filed with the city, in accordance with the following provisions and the rules and regulations:
A. Subject to subsections (B) and (C) of this section, the capital improvement increase petition shall be approved if all of the following findings can be made:
1. The work satisfies the definition of capital improvement set forth in CMC 9.05.030, and in any rules and regulations;
2. Fifty-one percent of the occupied spaces in the park, with one vote per space, have consented to the capital improvement;
3. No prior rent increases have been charged based upon or including the cost of the capital improvement;
4. As required by CMC 9.05.060(G), the park owner is currently registered and current on payment of the required monthly registration fee(s); and
5. All documentation and other information required by this chapter pertinent to the requested rent increase have been provided by the park owner.
B. Notwithstanding subsection (A) of this section, a capital improvement rent increase shall not be granted if the proposed capital improvement rent increase is for any portion or all of a utility distribution system where the utility rates are set by the Public Utilities Commission and the approved rates took into consideration costs of repair, replacement, maintenance, operation and/or capital improvements to the system.
C. A petition which meets all requirements of subsection (A) of this section but
has not been consented to by 51 percent of the occupied spaces may be granted when the capital improvement is necessary to protect the health and safety of the park, its residents, or neighbors as determined in accordance with the rules and regulations.
D. Any rent increase granted under this section shall be amortized over the useful life of the improvement and apportioned equally among all rental spaces in the park by dividing the verified cost of the improvement by its useful life (in years), dividing that result by 12 and further dividing by the number of spaces in the park. Any increase granted under this section shall remain in effect only during the useful life of the improvement. Any such increase shall be included as a separate charge either on the residents’ monthly rent statement or on a separate statement and shall not be included in the space rent for purposes of determining any other future rent increases under this chapter.
E. For purposes of determining the cost of a capital improvement, an interest cost of the lesser of either the current prime rate plus one percent, or the interest rate actually incurred by the mobile home park owner in financing the improvement, may be added.
F. Management may petition the hearing officer for an increase under this section by submittal of a verified petition under penalty of perjury to the city manager. The petition shall state the names, addresses and telephone numbers of all affected residents; the current rent of the affected spaces; the proposed rent increase; the documentation establishing that the resident meeting and capital improvement ballot election were held; the documentation establishing that the capital improvement was made, and the basis for the requested rent increase; and such other information relevant to the petition as determined by the city, in accordance with the rules and regulations. All necessary documents and records to support the petitioner’s calculations shall be attached to and shall become part of the petition. Seven copies of the petition and supporting documentation and records, along with proof of service of the notice required by CMC
9.05.110(D), an electronic copy of the petition and supporting documentation, and two sets of stamped envelopes addressed to each resident, shall be filed with the city manager.
G. Upon receipt of a petition, the city manager shall determine whether the petition is complete, in accordance with the following provisions:
1. No petition shall be deemed complete until all documents supporting the petitioner’s calculations and requested rent increase, required copies of the petition, and all proof of service and posting requirements have been filed with the city manager, and the filing fee paid to the city. The city manager shall have 30 days in which to determine the completeness of the petition, and shall notify the petitioner in writing within that period of any deficiency in the petition and the additional information, documentation or fee necessary for the city manager to deem the petition complete. Procedures for determination whether a petition is complete shall be set forth in the rules and regulations.
2. The documents and records submitted in support of the petition must be legible, reproducible, organized and presented in a manner appropriate and acceptable by reasonable accounting standards. Required documentation to deem the petition complete shall include all documents demonstrating that the resident meeting and resident vote took place, including but not limited to the notice of resident meeting, proof of service of the notice of resident meeting on all residents, the ballot submitted to the residents, and the election results. Required documentation shall also include all documents supporting the capital improvement, including but not limited to all invoices, billings, checks, code violation notices or citations, governmental approvals, documents demonstrating the health and safety reasons for the work if management contends the improvement was necessary for health and safety reasons, and all other records demonstrating the need for the work, the specific work performed, and the cost for such work. Management must, upon request of the city manager, or the hearing officer, show to city staff and/or the hearing officer the original document from which any photocopy was made and all documents, papers, or written memoranda which support or are evidence of claimed expenses of any nature.
3. Failure to comply with the provisions of this subsection shall be good and sufficient cause to deny the petition if the city finds that the park’s failure to submit a complete petition demonstrates that the park owner failed to meet its burden of proof that a capital improvement rent increase is warranted under this section.
H. Concurrently with filing the petition, management shall place two complete copies of the petition in the park office and two complete copies of the petition in the park clubhouse, for inspection and copying by the park residents and their representative(s).
Management shall maintain these copies of the petition, and any modifications or supplemental information or documentation submitted to the city, in those locations until issuance of a final decision by the city on the petition.
I. Management shall serve written notice of the filing of the petition on each resident of a space affected by the petition, in accordance with the requirements of CMC
9.05.110(F). In addition to all other requirements for submittal of the petition, no petition shall be considered as filed until proof of service of such notice and petition is filed with the city manager as required by CMC 9.05.110(F).
J. Written notice of the petition shall be mailed by the city to the affected residents on the date on which the petition is determined to be complete, and shall advise them of their right to submit a written response or protest to the petition, along with all supporting documentation, within 30 days of the date of mailing of the notice.
K. The hearing officer shall commence a public hearing on the petition within 45 days after mailing of the notice to the affected park residents that the petition has been deemed complete, and shall render its decision in writing, including findings of fact, within 75 days after the petition is determined to be complete; provided, that the hearing officer may extend the time limits under this subsection for reasonable cause, and failure of the hearing officer to act within the time limits specified herein shall not result in the automatic approval of any petition. The public hearing shall be conducted in the same manner as and in accordance with the requirements of hearings on petitions under CMC 9.05.110.
The hearing officer may approve the requested increase or a modified increase, or may deny the increase.
L. Management shall also be required to pay a filing fee and deposit the additional costs of the public hearing in accordance with the terms of this subsection.
1. Concurrently with filing the petition for a capital improvement rent increase, management shall pay the initial filing fee established and amended from time to time by resolution of the city council. Notwithstanding subsection (G) of this section or any other provision of this chapter, no petition for a capital improvement rent increase submitted to the city under this section shall be accepted as complete by the city, and no hearing on a petition for capital improvement rent increase shall be set by the city, if management fails to submit the initial filing fee concurrently with the petition, and the failure of management to submit the initial filing fee shall constitute grounds for the city to reject the petition as incomplete and to refuse to further process the petition.
2. Management shall also pay any additional costs of the public hearing not later than 15 days prior to the scheduled public hearing, which such costs shall be based upon an estimate prepared by the city manager and as established and amended by resolution of the city council. Notwithstanding subsection (G) of this section, management’s failure to deposit the additional costs shall be good and sufficient reason for the city to cancel the public hearing and to deem the petition withdrawn by the park owner. The term “costs” shall have the meaning set forth in CMC 9.05.110(H)(2).
3. The initial filing fee and any other costs paid by management may be included in a petition for temporary rent increase pursuant to CMC 9.05.140.
M. Any interested person wishing to respond or object to the petition may do so by filing a written response or protest with the city manager, in accordance with the rules and regulations. The written response or protest shall be filed with the city manager not later than the thirtieth day following the date that notice of the complete petition is mailed to the affected residents. All such responses or protests shall be served on management and proof of such service filed with the city manager in accordance with forms provided by the city, at the time the written response or protest is filed with the city manager.
N. At the conclusion of the public hearing, if the hearing officer finds that all requirements of this chapter have been met and an increase as requested in the petition or as modified by the hearing officer is authorized, the hearing officer shall approve the increase. If the hearing officer is unable to find that all requirements of this chapter have been met, the hearing officer shall deny the increase.
O. Management may but need not submit a petition to the hearing officer for a determination whether a proposed improvement would qualify for a capital improvement increase under this section upon its completion. The determination by the hearing officer shall be limited to the issue of whether the work proposed constitutes a capital improvement and shall not address the amount of the rent increase which would result from completion of the improvement should management prevail on the petition. If an
improvement is determined to qualify as a capital improvement under this section the only issues to be determined when the improvement has been completed and a petition for rent increase received shall be the amount of the increase; provided, that the improvement constructed conforms to the proposed improvement submitted to the hearing officer; and provided, that all required governmental improvements and permits have been obtained. A hearing shall be held on the petition in accordance with CMC
9.05.110.
P. Appeal. Any decision of the hearing officer pursuant to this section may be appealed, and prior to commencing any action in a court of competent jurisdiction shall be appealed, to the city council in accordance with CMC 9.05.120.” Section 8. Section 9.05.100, “Rent increase to provide a reasonable return” of Chapter 9.05, “Mobile Home Rent Stabilization” of Title 9, “Public Peace, Morals and Welfare” of the Calimesa Municipal Code is hereby amended in its entirety to read as follows:
“9.05.100 Rent increase to provide a reasonable return.
A. It is the intention of the city council that the permitted annual rent increase shall be sufficient to provide a reasonable return and maintain net operating income to a mobile home park owner. Nevertheless, recognizing the possibility of an extraordinary situation, a mobile home park owner may file a petition with the city manager for a rent increase in addition to that permitted by CMC 9.05.080 and/or 9.05.090 on the ground that it is required to provide a reasonable return to the park in such situations, in accordance with the following criteria. It shall be presumed, in the absence of evidence to the contrary, that the net operating income produced by the mobile home park during the base year provided the mobile home park owner with a reasonable return to the park.
B. For purposes of this chapter, and any rules and regulations, the following definitions and provisions shall apply:
1. “Base year” means as follows:
a. If a park has never obtained approval of a rent increase pursuant to this section (or any predecessor ordinance), the term “base year” means the fiscal year commencing July 1, 1991, and ending June 30, 1992. b. If a park has previously obtained approval of a rent increase pursuant to this section (or any predecessor ordinance), the “base year” for purposes of calculating a subsequent rent increase under this section means the income and expense year which was used by the city as the “current year” in determining the most recently approved rent increase under this section (or any predecessor ordinance). c. If a park applied for a rent increase pursuant to this section (or any predecessor ordinance) which was denied by the city, and the park subsequently applies for another rent increase under this section, the “base year” for purposes of
calculating the subsequent rent increase means the fiscal year commencing July 1, 1991, and ending June 30, 1992.
d. For purposes of a petition filed under subsection (E) of this section, “base year” shall have the meaning set forth in subsection (E)(2) of this section.
2. “Base year CPI” means as follows:
a. If the park has never obtained approval of a rent increase pursuant to this section (or any predecessor ordinance), the “base year CPI” means the CPI reported by the Bureau of Labor Statistics, U.S. Department of Labor, for June 30, 1992, as determined by the city manager.
b. If the park has previously obtained approval of a rent increase pursuant to this section (or any predecessor ordinance), the “base year CPI” for purposes of calculating the subsequent rent increase under this section means the CPI used by the city as the “current year CPI” in determining the most recently approved special rent increase under this section (or any predecessor ordinance). c. The city manager shall be responsible for determining the base year CPI.
3. “Comparable park” means a park in the city and surrounding areas, which has similar quality, number and type of amenities, construction and services, is located in a similar neighborhood and provides similar access and proximity to schools, medical and educational facilities, recreation, entertainment, parks, shopping and other services and amenities and is similarly maintained as the petitioner’s park.
4. “Current CPI” means the CPI last reported as of the date the rent increase petition filed under this section is declared complete. The city manager shall be responsible for determining the current CPI.
5. “Current year” means the 12-month period immediately preceding the date of submittal of a complete petition for a rent increase under this section.
6. “Gross income” for the park includes:
a. Gross rents computed as gross rental income at 100 percent paid occupancy; plus
b. interest earned on rental deposits, unless paid by the mobile home park owner to the residents; plus
c. Revenue from laundry facilities, cleaning fees or services, garage, storage and parking fees; plus
d. All other income or consideration received or receivable for or in connection with use or occupancy of mobile home spaces and related services in the park (but excluding any income or reserves received from submeter discounts or other
income collected for utility services if the charges for such utility services are regulated by the PUC); minus
e. Uncollected rents due to vacancy and bad debts to the extent they are beyond the control of the mobile home park owner. Uncollected rents in excess of three percent of gross rents shall be presumed to be unreasonable unless proven otherwise by a preponderance of the evidence.
7. “Operating expenses” for the park include:
a. Real property taxes and assessments; plus
b. Reasonable management expenses, contracted for or
performed by the mobile home park owner, including necessary and reasonable advertising to ensure occupancy only, accounting, insurance and other managerial expenses including allowable legal expenses as specified in subsection (B)(9) of this section. Management expenses which have not increased by more than the CPI since the base year or which are the same percentage of gross income in the base year and current year are presumed to be reasonable. Such presumption may be rebutted by clear and convincing evidence; plus
c. Reasonable normal repair and maintenance expense, such as painting, normal cleaning, fumigation, landscaping and repair of all standard services, including electrical and plumbing (and excluding expenses for the repair of, maintenance to, or the replacement of any component or meter of any submetered utility distribution system if the utility rates were set by the PUC and took into consideration the cost for operation, repair, replacement and/or maintenance of that type of service), carpentry, furnished appliances, drapes, carpets, furniture, pool, laundry and recreational equipment; plus
d. Owner-performed labor if actually performed by the park owner and the hours and nature of services provided are documented in the petition.
Owner-performed labor shall be compensated at an amount not to exceed the average hourly rate charged for such work within the same industry in the city of Calimesa or the surrounding area, and only upon a satisfactory showing of the date, time and nature of the work performed. Owner-performed labor which has not increased by more than the CPI since the base year or which is the same percentage of gross income in the base year and current year is presumed to be reasonable. Such presumption may be rebutted by clear and convincing evidence; plus
e. Licenses and registration fees required by law to the extent they are not paid by the residents (but excluding licenses and fees charged by state, federal or local governmental agencies related to tax purposes or the form of ownership of the park); plus
f. Capital improvements with a total cost of less than $100.00 per year per benefited space, provided they were not the subject of a city-approved capital improvement increase pursuant to CMC 9.05.090; plus
g. Capital improvements and major repairs with a total cost of more than $100.00 per year per benefited space, provided such costs are amortized on a straight line basis over the life of the improvement, provided the costs thereof were not the basis of a separate capital improvement pursuant to CMC 9.05.090. When the useful life of the improvement exceeds four years, an interest cost of the lesser of either the current prime rate plus one percent, or the interest rate incurred by the mobile home park owner in financing the improvement or repair, may be added. h. Expenses which are substantial, and which do not normally re-occur on an annual basis, shall be amortized over a reasonable period with an interest allowance in accordance with subsection (B)(7)(g) of this section.
8. Operating expenses shall not include:
a. Unnecessary and avoidable expense increases since the base year; and
b. Mortgage principal and interest payments and payments of any underlying ground lease, or any other debt service except as expressly provided in this section; and
c. Any penalties assessed or awarded for violations of this or any other law, including but expressly not limited to the Mobilehome Residency Law (California Civil Code Section 798 et seq.) the Mobile Home Parks Act (Division 13, Part
2.1 of the California Health and Safety Code, commencing with Section 18200), this chapter, or any other city, county, state or federal law; and d. Legal costs and fees except as provided in subsection (B)(9) of this section; and
e. Depreciation of the property; and
f. Any expenses for which the mobile home park owner has been reimbursed by any security deposit, insurance settlement, judgment for damages, or any other method; and
g. Reserve accounts; and
h. Accounting or other similar expert expenses incurred by the park owner in seeking any rent increase under this chapter, including but expressly not limited to any costs incurred in preparing or submitting any petition for a rent increase to the city manager, the hearing officer or the city council; and any costs of the public hearing incurred by the park owner in seeking any rental increase under this chapter; and i. Accounting or other similar expert expenses incurred in judicial or other administrative proceedings involving challenges to this chapter, any decision of the city under this chapter, or the defense of lawsuits or other proceedings brought by residents and/or the city under this chapter; and
j. Any fees, costs, penalties, fines or other expenses of any kind incurred in or as a result of any judicial or administrative proceedings before any federal, state or local agencies relating to or challenging the conditions or maintenance of the park, regardless of whether or not management prevailed in such lawsuit or administrative proceeding; and
k. Any capital improvement for which a capital improvement rent increase has been approved under CMC 9.05.090; and
l. Governmental fees, charges or assessments imposed based on the form of ownership of the park; and
m. Any expenses which resulted due to the owner’s failure to undertake prudent and ongoing maintenance activities or activities required by law; or costs which were caused by unnecessary and unreasonably deferred negligent or otherwise improper repair and/or maintenance or other unreasonable acts or omissions of the park owner, including but expressly not limited to any expenses incurred with regard to vacant spaces. In evaluating an MNOI petition, the hearing officer may reduce allowable operating expenses to the extent that the hearing officer finds that any claimed expenses resulted from management’s failure to undertake prudent and ongoing maintenance activities or which such costs were caused by unnecessarily and unreasonably deferred negligent or otherwise improper repair and/or maintenance or other acts or omissions of management; and
n. Any expenses for which a park owner has obtained approval of a capital improvement rent increase pursuant to CMC 9.05.090.
9. Allowable legal expenses include reasonable attorneys’ fees and costs incurred in successful good faith attempts to recover rents owing and unlawful detainer actions to the extent such fees and costs are not recovered from the defendants; and reasonable attorneys’ fees and costs incurred in connection with matters pertaining to the title or normal operation of the mobile home park. a. Allowable legal expenses in a special rent increase petition shall not include any of the following: attorneys’ fees and costs for proceedings under this chapter (including but not limited to attorneys’ fees and costs incurred in connection with the preparation or submittal of petitions for rent increases to the city under this chapter); attorneys’ fees and costs incurred as a result of any judicial or administrative proceedings before any federal, state or local agency relating to or challenging the conditions or maintenance of the park regardless of whether or not the park owner prevailed in such proceeding; any attorneys’ fees or costs incurred in connection with judicial or other administrative proceedings involving challenges to this chapter, any decision of the city under this chapter, or the defense of lawsuits or other proceedings brought by residents and/or the city under this chapter; any attorneys’ fees, costs or any other payments of any kind made to any organization for the purpose of litigating or challenging rent control; any attorneys’ fees and costs of any kind incurred in connection with any other legal proceedings related to the park; and any other attorneys’ fees and costs that are not related to the normal operations of the park. Legal expenses incurred in connection with preparation of a special rent increase petition and/or the hearing or appeal process
related to a special rent increase petition may be included in a request for a temporary rent increase pursuant to CMC 9.05.140.
b. In determining the amount of legal expenses to be included in base year or current year operating expenses, allowable legal expenses shall be amortized over a five-year period, and only the amortized portion shall be included as an operating expense in the relevant year. For purposes of determining the amortized cost of allowable legal expenses, an interest cost of the lesser of either the current prime rate plus one percent, or the interest rate actually incurred by the mobile home park owner in paying for the expenses, may be added.
c. Except as provided in this subsection (B)(9), no other attorneys’ fees and costs are allowable as operating expenses.
10. “Net operating income” or “NOI” means gross income less operating expenses for the park.
11. “Special increase” or “special rent increase” means any of the following: (a) a maintenance of net operating income rent increase under subsection (D) of this section, (b) a maintenance of net operating income rent increase based on a readjusted base year NOI under subsection (E) of this section, or (c) a fair return rent increase under subsection (F) of this section.
12. Determination of Gross Space Rents. If management submits a petition for a special rent increase under subsection (D) and/or (E) of this section, the space rents actually charged by management in the 12 months preceding the date of filing of the complete petition shall be used to determine the park’s current year gross income, in accordance with the following requirements:
a. Following approval of a permitted annual increase, if management began collecting rents based on the approved permitted annual increase prior to the date of submittal of the complete petition for a special rent increase to the city, the actual space rents collected by management during the current year (as defined in subsection (B)(5) of this section) shall be used in performing the special rent increase calculations under this section and CMC 9.05.110.
b. If management issues a notice of rent increase under state law based upon a city-approved permitted annual rent increase to any resident but the actual initial payment date based on that approved permitted annual increase does not take place prior to the date of filing of the complete petition under this section, the special rent increase approved by the city pursuant to this section shall supersede and take the place of any such noticed annual rent increase. The special rent increase calculations made pursuant to this section and CMC 9.05.110 shall be adjusted to avoid any duplication of rent increases.
C. For purposes of determining a special rent increase under subsection (D) or (E) of this section, the gross income and operating expenses for the entire park shall be determined, including for those spaces which are exempt from rent control under this chapter pursuant to a long-term rental agreement under Civil Code Section 798.17(a) or otherwise exempt under Civil Code Section 798.45. However, in calculating a special rent
increase under subsection (D) or (E) of this section for the regulated spaces, the net operating income of the park shall be adjusted to reflect only that portion of the park that is subject to this chapter, and a prorated amount of the park’s net operating income increase shall be allocated to the individual regulated spaces such that the regulated spaces shall be required to pay only that portion of the maintenance of net operating income rent increase attributable to the regulated spaces. Spaces exempt from rent control shall pay the space rent required pursuant to their individual long-term leases.
D. Maintenance of Net Operating Income Increase (or “MNOI Increase”). A mobile home park owner may petition the hearing officer to increase the park’s base year net operating income by 80 percent of the increase in the Consumer Price Index since June 30, 1992, and the date of the petition. For the purpose of this subsection (D), the June 30, 1992, Consumer Price Index shall be the “base year CPI” as defined in subsection (B)(2)(a) of this section; and “current CPI” shall be the “current CPI” as defined in subsection (B)(4) of this section. The petition shall be filed in accordance with this section, CMC 9.05.110 and the rules and regulations.
E. Adjustment to Base Year NOI.
1. A mobile home park owner may rebut the presumption that the park’s base year net operating income provided a just and reasonable return at that time by presenting evidence that:
a. The park’s operating expenses in the base year were
unusually high or low. In such instances, the hearing officer may adjust the calculation of base year NOI by adjusting the expenses to reflect the average of the park’s expenses over a reasonable period of time or the average of expenses in comparable mobile home parks in that year.
b. Capital improvements were made during the base year, but were not reflected in increases collected during that year. c. Unusual repairs were made in the base year due to damage caused by uninsured natural events or vandalism.
d. Other expenses were unreasonably high or low
notwithstanding prudent business practices.
e. The rent during the base year was lower than rents being charged in comparable mobile home parks in the city and comparable parks in the surrounding areas due to the fact that it was not established in an arms-length transaction, rent had not been increased during that year or other peculiar circumstances. f. The rent during the base year was lower than rents being charged for spaces in comparable mobile home parks in the city and comparable parks in the surrounding areas.
g. The rent during the base year was not sufficient to provide a just and reasonable return by providing evidence of the return on investment actually
earned by the park in the base year and of the return on investment earned by comparable parks in the city and surrounding areas since the base year.
2. Base Year. For purposes of this subsection (E), “base year” means the fiscal year commencing July 1, 1991, and ending June 30, 1992.
3. Eligibility. If a park has previously received approval of a special rent increase under this subsection (E) (or any predecessor ordinance), such park shall not be eligible for another special rent increase pursuant to this subsection (E).
4. Burden of Proof. The mobile home park owner shall have the burden of proving that one or more of the circumstances listed above existed and of providing the evidence needed to make appropriate increases in base year income and expenses.
5. Procedures and Requirements. The petition shall be filed in accordance with CMC 9.05.110 and the rules and regulations.
F. Fair Return Increase.
1. A park owner may rebut the presumption that the MNOI calculations provided in subsection (D) of this section and/or the modified calculations provided in subsection (E) of this section are sufficient to provide a just and reasonable return by presenting evidence that the rate of return being earned by the mobile home park is not just and reasonable.
2. Burden of Proof. The park owner shall have the burden of proving the park is not earning a just and reasonable return.
3. Procedures and Requirements. A petition for rent increase under this subsection (F) shall be in accordance with CMC 9.05.110 and the rules and regulations.
G. Registration Fee. As required by CMC 9.05.060(G), no petition for a special rent increase shall be approved by the city if the park owner is not currently registered and current on payment of his/her monthly registration fee(s) due under CMC 9.05.060.” Section 9. Section 9.05.110, “Petition for rent increase to provide a reasonable return” of Chapter 9.05, “Mobile Home Rent Stabilization” of Title 9, “Public Peace, Morals and Welfare” of the Calimesa Municipal Code is hereby amended in its entirety to read as follows:
“9.05.110 Petition for rent increase to provide a reasonable return.
Petitions for a special rent increase to provide a reasonable return under CMC
9.05.100 shall be submitted in accordance with the following requirements and the rules and regulations:
A. Management shall file a verified petition under penalty of perjury with the city manager for a special rent increase to provide a reasonable return and to maintain
net operating income pursuant to CMC 9.05.100(D), (E) or (F). Concurrently with filing the petition, management shall pay the required filing fee adopted or periodically adjusted by resolution of the city council.
B. A petition for an MNOI rent increase under CMC 9.05.100(D) may be filed by itself or concurrently with a petition for a special rent increase under CMC 9.05.100(E) or (F). A petition for an MNOI rent increase based on a readjusted base year NOI under CMC 9.05.100(E) may be filed with a petition for a special rent increase under CMC
9.05.100(D) or (F). A petition for a special rent increase under CMC 9.05.100(F) shall not be filed unless accompanied by a petition for a special rent increase under CMC
9.05.100(D) or (E).
C. The petition shall state the names, addresses and telephone numbers of all affected residents; the current rent of the affected spaces; the proposed increase; the calculations pursuant to CMC 9.05.100 to support the proposed increase and a request to the hearing officer to review and approve the proposed increase; and such other information relevant to the petition as determined by the city in accordance with the rules and regulations. All necessary documents and records to support the petitioner’s calculations shall be attached to and shall become part of the petition. Seven copies of the petition and supporting documentation and records, an electronic copy of the petition, proof of service of the notice required by subsection (E) of this section, and two sets of stamped envelopes addressed to the affected residents shall be filed with the city manager.
D. Upon receipt of the petition, the city manager shall determine if the petition is complete, in accordance with the following provisions and the rules and regulations:
1. No petition shall be deemed complete until all documents supporting the petitioner’s calculations and requested rent increase, required copies of the petition, and all proof of service and posting requirements have been filed with the city manager and the filing fee paid to the city, as required by this section. The city manager shall have 30 days in which to determine the completeness of the petition, and shall notify the park owner in writing within that period of any deficiency in the petition and the additional documentation, information and/or fee necessary for the city manager to deem the petition complete. Procedures for determination whether a petition is complete shall be set forth in the rules and regulations. The park owner shall comply with any requests by the city manager for submittal of additional information or documentation deemed necessary by the city manager to find that the petition is complete, in accordance with the rules and regulations.
2. The applicable subsection under which the petition is submitted, the method or manner of determining the proposed rent increase, and the documents and records submitted in support of the petition must be legible, reproducible, organized and presented in a manner appropriate and acceptable by reasonable accounting standards and must be consistent with the requirements of this section and the rules and regulations.
Required documentation to deem the petition complete shall include all documentation that establishes each category, type and amount of income, expense, interest charged or
incurred, and the reasonableness of each expense, in accordance with the rules and regulations. The petitioner must, upon request of the hearing officer, , show to the hearing officer the original document from which any photocopy was made and all documents, papers, or written memoranda which support or are evidence of claimed income or expenses of any nature, or which are otherwise pertinent to the hearing officer’s decision on the petition.
3. Failure to comply with the provisions of this subsection shall be good and sufficient cause to deny the petition if the hearing officer finds that the park’s failure to submit a complete petition demonstrates that the park owner failed to meet its burden of proof that a rent increase is warranted under this section.
E. Concurrently with filing the petition, management shall place two complete copies of the petition in the park office and two complete copies of the petition in the park clubhouse for inspection and copying by the park residents and their representative(s).
Management shall maintain these copies of the petition, and any modifications or supplemental information or documentation submitted to the city, in those locations until issuance of a final decision by the city on the petition. Management shall also post a notice in the park office and clubhouse, in publicly accessible areas, informing the residents that the petition has been filed with the city, in accordance with the rules and regulations, and shall maintain such notices in the park until issuance of a final decision by the city on the petition.
F. Management shall serve written notice of the filing of the petition on each resident of a space affected by the petition. The notice shall also advise the residents that copies of the petition and supporting documentation are available for their review and copying at the specified locations in the park; and that the petition and supporting documentation may be reviewed at City Hall. Management shall also serve a copy of the petition and all supporting documentation and records on the designated representatives of the park residents. The representatives shall be selected by the park residents and shall not exceed four persons. Service of the notice and petition may either be in person or by mail to the last known address of each resident and representative. No petition shall be considered as filed until proof of service of such notice and petition is filed with the city manager. The notice and proof of service shall be on forms provided by the city manager.
G. Written notice of the petition shall be mailed by the city to the affected residents on the date on which the petition is determined to be complete, and shall advise them of their right to submit a written response or protest, along with all supporting documentation, to the petition within 30 days of the date of mailing of the notice. The hearing officer shall call a meeting to commence a public hearing within 75 days after the petition has been deemed complete by the city. The city clerk shall publish notice of the public hearing at least 72 hours prior thereto. The hearing officer shall render its decision, in writing, including findings of fact and rulings on all issues presented, within 90 days after the petition is determined to be complete; provided, that the hearing officer may extend the time limits under this subsection for reasonable cause, and failure of the hearing officer to act within the time limits specified herein shall not result in the automatic approval of any petition.
H. The park owner shall also be required to pay a filing fee and deposit the additional costs of the public hearing in accordance with this subsection.
1. Concurrently with filing the petition for a special rent increase, management shall pay the initial filing fee established and amended from time to time by resolution of the city council. Notwithstanding subsection (D) of this section or any other provision of this chapter, no petition for a special rent increase submitted to the city under this section shall be accepted as complete by the city, and no hearing on a special rent increase petition shall be set by the city, if management fails to submit the initial filing fee with the petition, and the failure of management to pay the initial filing fee shall constitute grounds for the city to reject the petition as incomplete and to refuse to further process the petition.
2. Management shall also pay any additional costs of the public hearing, based upon an estimate prepared by the city manager in accordance with the resolution established or amended from time to time by the city council. The estimated costs of the public hearing shall be deposited with the city manager no less than 60 days prior to the hearing. Failure to deposit the costs shall be good and sufficient reason for the city to cancel the hearing and to deem the petition withdrawn by the park owner, and no further action to process the petition shall be taken by the city. As used in this subsection, the term “costs” means all city staff and other expert time incurred by the city in reviewing the petition and presenting the petition to the hearing officer and city council; copying and duplication costs; and costs of providing public notice. Costs shall be established and periodically adjusted by resolution of the city council.
3. The initial filing fee, and any additional costs deposited by management, may be included in a petition for a temporary rent increase pursuant to CMC 9.05.140.
I. Any resident or other interested person wishing to protest or respond to the petition may do so by filing a written protest under penalty of perjury with the city manager, in accordance with the rules and regulations. The written protest shall be filed with the city manager not later than the thirtieth day following the date that notice of the complete petition is mailed to the affected residents. All such protests shall be served on management and proof of such service filed with the city manager, on forms provided by the city, at the time the written protest is filed with the city manager.
J. In seeking a rent increase under any provision of this chapter, the petitioner shall bear the burden of proof. All parties to the public hearing may have assistance in presenting evidence and developing their position from legal counsel, residents, resident or park owner organizations, or experts designated by such parties. In the event that the city retains a certified public accountant or other expert as a designated representative of the hearing officer to examine the petition and supporting material and testify as an expert witness, the cost to the city to employ such an expert shall be a part of the cost of the public hearing. Any and all expenses shall be reasonable.
K. At the conclusion of the public hearing, if the hearing officer finds that an increase as requested in the petition or as modified by the hearing officer is authorized
by CMC 9.05.100, the hearing officer shall approve the increase as proposed or modified.
If the hearing officer finds an increase is not authorized under CMC 9.05.100, the hearing officer shall deny the increase. The hearing officer’s decision shall be issued in accordance with subsection (G) of this section. The mobile home park owner shall not be permitted more than one increase under CMC 9.05.100 in any 12-month period.
L. Upon issuance of the final decision by the hearing officer, the city clerk shall mail, by first class mail, postage prepaid, a copy of the decision of the hearing officer to the park owner and to each park resident, along with an affidavit of mailing. The hearing officer’s decision shall be final upon date of mailing of the resolution in accordance with this subsection.”
Section 10. Section 9.05.120, “Appeal” of Chapter 9.05, “Mobile Home Rent Stabilization” of Title 9, “Public Peace, Morals and Welfare” of the Calimesa Municipal Code is hereby amended in its entirety to read as follows:
“9.05.120 Appeal.
A. Either party may, and prior to commencing any action in a court of competent jurisdiction shall, appeal any final decision or order of the hearing officer to the city council by filing written notice of the appeal with the city manager not later than 15 days after the date of deposit in the mail of the decision of the hearing officer to the petitioner and affected residents. Appeals shall be filed, processed and heard in accordance with this section and the rules and regulations.
B. Prior to or concurrently with filing the appeal, management shall place copies of the appeal at the park in accordance with CMC 9.05.110(E), and shall maintain those copies at the park for inspection and copying by the residents until issuance of a final decision by the city on the appeal.
C. The appellant shall serve written notice of the filing of the appeal, along with any documents supporting the appeal, on the opposing party, and prior to or concurrently with filing of the appeal shall also post notice of filing of the appeal in the park clubhouse and office in publicly accessible areas. If the appellant is a park resident (or park resident representative), notice shall be posted in those areas normally made available for posting of notices by park residents. If the appellant is the park owner, the notice shall also advise the residents and the resident representatives that copies of the appeal and supporting documentation are available for their review and copying at the park in accordance with CMC 9.05.110(E), and that the appeal and supporting documentation may be reviewed at City Hall. Service of notice may either be in person or by mail to the last known address of the opposing party. No appeal shall be considered as filed until proof of service of such notice and posting, and supporting documentation, are filed with the city manager, and the cost of the appeal is deposited with the city manager. The cost of the appeal shall be estimated by the city manager. The notice and proof of service and posting shall be on forms provided by the city manager. The city manager shall set the appeal for a public hearing at a regular meeting of the city council to be commenced within 30 days after the appeal is filed. No appeal shall be considered filed until proof of service of such notice,
supporting documentation and deposit are filed with the city manager. If the appellant fails to deposit the required fee and all required documentation by the deadline to file an appeal, the appeal shall be deemed withdrawn and no further proceedings shall take place on the appeal.
D. Upon receipt of the complete appeal, the city manager shall provide notice of the appeal hearing to all affected park residents, resident representatives, management and management’s representative(s), in accordance with the rules and regulations.
E. As used in this section, the term “costs” means all city staff and other expert time incurred by the city in reviewing the appeal and presenting the appeal to the city council; copying and duplication costs; and costs of providing public notice. The costs shall be set by resolution of the city council as established or amended from time to time.
F. The city council shall affirm the hearing officer’s decision if it is supported by substantial evidence, and complies with this chapter and rules and regulations. If the city council finds that the hearing officer’s decision is not supported by substantial evidence, or does not comply with the rules and regulations, the city council shall grant the appeal, and may deny the petition, modify the hearing officer’s decision on the petition, or refer the petition back to the hearing officer for further proceedings consistent with the city council’s decision on the appeal.
G. The appeal hearing shall be conducted in accordance with the rules and regulations. The city council shall issue its decision in writing, including findings of fact and rulings on all issues presented, within 45 days of the commencement of the public hearing; provided, that the city council may extend the time limits under this subsection for reasonable cause, and failure of the city council to act within the time limit specified herein shall not result in the automatic approval of any petition. The decision of the city council on any appeal shall be final.
H. Upon issuance of the city council’s decision pursuant to subsection (G) of this section, the city clerk shall mail, by first class mail, postage prepaid, a copy of the resolution of the city council setting forth its final decision on the appeal, to the park owner and to each park resident, along with an affidavit of mailing. The decision of the city council shall be final on the date of mailing by the city clerk pursuant to this subsection.” Section 11. Section 9.05.140, “Prevailing park owner petition for recovery of petition costs incurred before the board in connection with special rent increase petition” of Chapter 9.05, “Mobile Home Rent Stabilization” of Title 9, “Public Peace, Morals and Welfare” of the Calimesa Municipal Code is hereby amended in its entirety to read as follows:
“9.05.140 Prevailing park owner petition for recovery of petition costs incurred before the hearing officer in connection with special rent increase petition.
A park owner who obtains approval of a capital improvement rent increase or
special rent increase from the city may seek approval of a temporary rent increase to reimburse the park owner for the reasonable cost of professional services actually incurred by the park owner in preparing and presenting the petition to the hearing officer under CMC 9.05.110 in accordance with this section and the rules and regulations.
A. A request for approval of a temporary rent increase under this section shall be filed as part of a park owner’s petition for a capital improvement rent increase under CMC 9.05.090(F) or a park owner’s petition for a special rent increase pursuant to CMC
9.05.100 and 9.05.110, in accordance with the city-approved forms. The hearing officer shall consider the park owner’s request at the public hearing at which the underlying petition for a capital improvement rent increase or the underlying petition for special rent increase is considered, and the hearing officer’s decision on the temporary rent increase shall be included in its written decision on the petition for a capital improvement rent increase or special rent increase. Any appeal of the hearing officer’s decision on a temporary rent increase shall be filed in accordance with CMC 9.05.120 in accordance with the city-approved form, and the city council shall consider such appeal concurrently with the appeal of the hearing officer’s decision on the underlying capital improvement rent increase petition or special rent increase petition.
B. The park owner shall bear the burden of proof and shall provide the evidence to justify a temporary rent increase submitted under this section, and approval of the petition shall be conditioned upon the park owner’s successfully obtaining final approval from the city of a capital improvement rent increase pursuant to CMC 9.05.090 or a special rent increase pursuant to CMC 9.05.100 and 9.05.110.
C. Any temporary rent increase granted by the city shall be amortized over a five-year period with interest at the rate of seven percent per year, compounded monthly, and any increase granted shall remain in effect only during the five-year period. Any such increase shall not be included as part of the monthly space rent but shall be itemized as a separate charge either on each resident’s monthly rent statement or on a separate statement. Nothing in this provision shall preclude a park resident from paying the full amount of the temporary rent increase as one lump sum without any payment of interest, following issuance of the city’s final decision.
D. Registration Fee. As required by CMC 9.05.060(G), no petition for a temporary rent increase shall be approved by the city if the park owner is not currently registered and not current on payment of his/her monthly registration fee(s) due under CMC 9.05.060.”
Section 12. Section 9.05.180, “Administrative costs” of Chapter 9.05, “Mobile Home Rent Stabilization” of Title 9, “Public Peace, Morals and Welfare” of the Calimesa Municipal Code is hereby amended in its entirety to read as follows:
“9.05.180 Administrative costs.
The city manager shall, from time to time, calculate the total costs of conducting a meeting of the mobile home rent stabilization hearing officer and appeal to the city council
and file such figures in his/her office. Such figures shall be used in determining the deposits and costs for holding a hearing by the hearing officer and appeal to the city council.”
Section 13. Environmental Determination. This Ordinance has been reviewed with respect to applicability of the California Environmental Quality Act (“CEQA”) and the State CEQA Guidelines (California Code of Regulations, Title 14, Sections 15000 et seq., hereafter the “Guidelines”). The City has determined that this Ordinance is not a “project” for purposes of CEQA, as that term is defined by Guidelines Section 15378. Specifically, this Ordinance constitutes organizational or administrative activities of City government that will not result in direct or indirect physical changes in the environment. (Guidelines Section 15378(b)(5)). Therefore, because it is not a “project,” this Ordinance is not subject to CEQA’s requirements. Further, even if this Ordinance were deemed a “project” and therefore subject to CEQA, the Ordinance would be covered by the general rule that CEQA applies only to projects that have the potential to cause a significant effect on the environment. (Guidelines Section 15061(b)(3)). As an organizational or administrative activity which does not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment, this Ordinance does not have the potential to cause a significant effect on the environment and is therefore exempt under this general rule. Further, it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, and thus this Ordinance is not subject to CEQA. (Guidelines Section 15061(b)(3)).
Section 14. Severability. If any portion of this Ordinance is found to be unconstitutional or invalid, the City Council hereby declares that it would have enacted the remainder of this Ordinance regardless of the absence of any such invalid part or portion. The City Council of the City of Calimesa hereby declares that it would have passed this ordinance, and each section, subsection, clause or phase hereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses and phrases be declared unconstitutional.
Section 15. No Other Amendments. Except as otherwise amended in this Ordinance, the remaining provisions of Chapter 9.05 shall remain as written and in full force and effect.
Section 16. Savings Clause. Neither the adoption of this Ordinance nor the repeal or amendment by this Ordinance of any ordinance or part or portion of any ordinance previously in effect in the City or within the territory comprising the City, shall in any manner affect the prosecution for the violation of any ordinance, which violation was committed prior to the effective date of this Ordinance, nor be construed as a waiver of any license, fee or penalty or the penal provisions applicable to any violation of such ordinances.
Section 17. Effective Date. This Ordinance shall take effect thirty (30) days after its final passage.
Section 18. Publication. The City Clerk shall certify to the adoption of this Ordinance and is hereby directed to cause the following summary of this ordinance to be published and posted as required by law.
INTRODUCED AND PASSED UPON FIRST READING by title only, this 21st day of April 2025, upon the following vote:
AYES: Cervantez, Cundieff, Garcia, Manly and Molina
NOES: None
ABSENT: None
ABSTAIN: None
PASSED, APPROVED AND ADOPTED this 20th day of October 2025 upon the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
________________________________
LINDA MOLINA, MAYOR
ATTEST:
_________________________________
DARLENE GERDES, CITY CLERK
APPROVED AS TO FORM:
__________________________________
STEVEN L. FLOWER, CITY ATTORNEY
City Council Meeting
Agenda Report
Agenda Item No. 6
SUBJECT: TREASURER’S REPORT FOR THE MONTH ENDED
August 31, 2025
MEETING DATE: October 20, 2025
PREPARED BY: Celeste Reid, Finance Director and Treasurer RECOMMENDATION: That the City Council receive and file the Investment Report for the month ended August 31, 2025.
BACKGROUND: Pursuant to Council Resolution No. 2024-60 approved on November 4, 2024, the monthly Treasurer’s Report is hereby submitted. The report complies with the aforementioned Council resolution, as well as Government Code Section 53646.
DISCUSSION: The investment report provides information in accordance with the Investment Policy approved by Council Resolution No. 2024-60. Information includes the reporting of realized and unrealized gain and loss activity for the respective month of reporting. Generally, unrealized gains and losses are the day-to-day increases or decreases in an assets value. Until an investment is sold for cash, the gains or losses remain unrealized. Realized gains and losses reflect the results of selling of investments and are the difference between the cost basis and the market value as of the transaction date of sale. The City will continually have reportable changes of unrealized gain and loss activity between cost basis and market value as underlying investments are subject to the variability of market conditions. Staff evaluates investment options on an ongoing basis to ensure reasonable access to funds and reserves are set aside to maintain availability of cash position for general operations and capital assets.
Significant transactions during the month include transfers of $2,000,000 on August 19, 2025, from the to the LAIF investment account to the General Fund account.
FISCAL IMPACT Revenue of $11,808 of interest and dividend earnings was recognized for Checking Sweep Account, CFD and Successor Agency funds.
ATTACHMENTS:
Attachment A: Treasurer’s Report for the month ended August 31, 2025
City Council Meeting
Agenda Report
Agenda Item No. 7
SUBJECT: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CALIMESA, CALIFORNIA, REPLACING RESOLUTION NO. 2025-
36 AND ESTABLISHING ADMINISTRATIVE RULES FOR THE
IMPLEMENTATION OF THE CALIMESA MOBILE HOME RENT
STABILIZATION ORDINANCE.
MEETING DATE: October 20, 2025
PREPARED BY: Darlene Gerdes, Deputy City Manager/City Clerk RECOMMENDATION: That the City Council adopt Resolution No. 2025-54 a Resolution of the City Council of the City of Calimesa, California amending the Administrative Rules and Regulations for the Implementation of the Calimesa Mobile Home Rent Stabilization Ordinance(Chapter 9.05 of the Calimesa Municipal Code) and superseding and repealing Resolution No. 2025-36.
DISUSSION: On March 17, 2025, the City Council directed the issuance of a Request for Proposals seeking Mobile Home Rent Stabilization Hearing Officer services in place of the Mobile Home Rent Stabilization Board processes. Council further directed that the appeal process remain as it is with the City Council serving as the appeal body from decisions of the hearing officer.
Amendments were necessary to the Municipal Code to replace the provisions related to the Mobile Home Park Rent Stabilization Board process with procedures for appointment of hearing officers and the conduct of evidentiary hearings before a hearing officer, and on April 21, 2025 Ordinance No. 410 was approved with a first reading by title only and a second reading and adoption was approved by the City Council on October 20, 2025.
As a result of these amendments to the Ordinance, amendments to the Administrative Rules are necessary as well. Resolution No. 2025-xx amends the Administrative Rules and Regulations for the Implementation of the Calimesa Mobile Home Rent Stabilization Ordinance (Chapter 9.05 of the Calimesa Municipal Code) to further implement the Mobile Home Rent Stabilization Hearing Office procedures established by Ordinance No. 410, which will supersede and repeal Resolution No. 2025-36.
FISCAL IMPACT: There are no fiscal impacts as a result of this item.
ATTACHMENTS:
Attachment A: Resolution No. 2025-54 adopting the Administrative Rules (including Exhibit A)
RESOLUTION NO. 2025-54
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CALIMESA
AMENDING THE ADMINISTRATIVE RULES AND REGULATIONS FOR
THE IMPLEMENTATION OF THE CALIMESA MOBILE HOME RENT
STABILIZATION ORDINANCE (CHAPTER 9.05 OF THE CALIMESA
MUNICIPAL CODE) AND SUPERSEDING AND REPEALING
RESOLUTION NO. 2025-36
WHEREAS, the City Council of the City of Calimesa (“City”) previously adopted Chapter 9.05, containing Sections 9.05.010, et seq., of the Calimesa Municipal Code, pertaining to Mobile Home Rent Stabilization (the “Ordinance”), and further adopted Administrative Rules for the implementation of the Ordinance ( “Rules”); and
WHEREAS, on August 19, 2010, the City Staff conducted a study session with the Calimesa Mobile Home Rent Stabilization Board regarding possible amendments to the Ordinance and Rules, and thereafter conducted a duly noticed public workshop with the park residents on February 23, 2011, and on February 24, 2011 and June 29, 2011, conducted duly noticed workshops with the park owners and their representatives, and thereafter on August 15, 2011 and September 19, 2011, conducted duly noticed public hearings on proposed amendments to the Ordinance and the Rules; and
WHEREAS, on September 19, 2011, the City Council adopted Resolution No. 2011-34, approving the amended Rules with additional amendments to provide for payment of the registration fee monthly and require updated registrations twice a year; and WHEREAS, on October 17, 2011, staff presented the amended Rules with the additional changes requested by the City Council at its meeting on September 19, 2011 so that the City Council could adopt the Rules with all amendments; and
WHEREAS, the City Council directed the issuance of a request for proposal seeking Mobile Home Rent Stabilization Hearing Officer services in place of the Mobile Home Rent Stabilization Board processes; and
WHEREAS, on October 20, 2025 the City Council adopted Ordinance No. 410 updating and clarifying provisions of Chapter 9.05 of the Calimesa Municipal Code pertaining to Mobile Home Rent Stabilization and amending the Calimesa Municipal Code pertaining to the implementation of a hearing officer process and repeal of the Mobile Home Rent Stabilization Board; and WHEREAS, this Resolution has been reviewed with respect to applicability of the California Environmental Quality Act (“CEQA”), the State CEQA Guidelines (California Code of Regulations, Title 14, Sections 15000 et seq., hereafter the “Guidelines”), and the City’s environmental guidelines.
The City has determined that this Resolution is not a “project” for purposes of CEQA, as that term is defined by Guidelines Section 15378. Specifically, this Resolution constitutes organizational or administrative activities of City government that will not result in direct or indirect physical changes in the environment. (Guidelines Section 15378(b) (5)). Therefore, because it is not a “project,” this Resolution is not subject to CEQA’s requirements. Further, even if this Resolution were deemed a “project” and therefore subject to CEQA, the Resolution would be covered by the general rule that CEQA applies only to projects that have the potential to cause a significant effect on the environment. (Guidelines Section 15061 (b) (3)). As an organizational or administrative activity which do not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment, this Resolution does not have the potential to cause Attachment 7A
a significant effect on the environment and is therefore exempt under this general rule. Further, it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, and thus this Resolution is not subject to CEQA (Guidelines Section 15061(b) (3));
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF CALIMESA DOES HEREBY RESOLVE, DETERMINE, AND ORDER AS FOLLOWS:
Section 1. All facts set forth in the Recitals of this Resolution are true and correct.
Section 2. The Administrative Rules for the Implementation of the Calimesa Mobile Home Rent Stabilization Ordinance are hereby amended in their entirety to read as set forth in Exhibit “A”, attached hereto.
Section 3. Resolution No. 2025-36 is hereby superseded and repealed by this Resolution No. 2025-xx
Section 4. Neither the adoption of this Resolution nor the repeal or amendment by this Resolution of the Administrative Rules, or part or portion of any Administrative Rules, previously in effect in the City or within the territory comprising the City, shall in any manner affect the prosecution for the violation of any provision of the Administrative Rules which violation was committed prior to the effective date of this Resolution, nor be construed as a waiver of any license, fee or penalty or the penal provisions applicable to any violation of such Administrative Rules.
Section 5. If any section, subsection, sentence, clause, phrase or portion of this Resolution, or Exhibit “A”, attached hereto, for any reason is held to be invalid or unconstitutional by any court of competent jurisdiction, such decision shall not affect the validity or the remaining portions of this Resolution or Exhibit “A”. The City Council of the City of Calimesa hereby declares that it would have adopted this Resolution and Exhibit “A”, attached hereto, and each section, subsection, sentence, clause, phrase or portion thereof irrespective of the fact that any one or more sections, subsections, sentences, clauses, phrases or portions were to be declared invalid or unconstitutional.
Section 6. This Resolution shall take effect upon adoption.
Section 7. The City Clerk shall certify to the adoption of this Resolution.
PASSED, APPROVED AND ADOPTED this 20th day of October 2025. ______________________________
LINDA MOLINA, MAYOR
ATTEST:
____________________________
DARLENE GERDES, CITY CLERK
ATTACHMENT: Exhibit “A” – Administrative Rules for the
Implementation of the Mobile Home Rent Stabilization Ordinance
1 EXHIBIT “A” TO
CITY COUNCIL RESOLUTION NO. 2025-36XX54
CITY OF CALIMESA
ADMINISTRATIVE RULES FOR THE
IMPLEMENTATION OF THE MOBILE
HOME RENT STABILIZATION
ORDINANCE
(includes amendments through October 157, 2011 pursuant to Ordinance No. 316 and City Council Resolution No. 2011-38) and amendments through July 21October 2720, 2025 pursuant to Ordinance No. 410XXX410 and City Council Resolution No. 2025- 36XX54.
2 TABLE OF CONTENTS
Page
CITY OF CALIMESA ADMINISTRATIVE RULES FOR THE IMPLEMENTATION OF THE MOBILE HOME RENT STABILIZATION 5
CHAPTER 1 - GENERAL PROVISIONS 5
1.1 Purpose and Interpretation 5
1.2 Public Access and Open Meetings 5
1.3 Posting and Delivery of Ordinance to Park Residents 5 CHAPTER 2 – DEFINITIONS 6
CHAPTER 3 – POWERS AND DUTIES 8
3.1 City Council 8
3.2 Mobile Home Park Rent Stabilization Hearing Officer 9
3.3 Rent Administrator 9
CHAPTER 4 – MOBILE HOME PARK RENT STABILIZATION HEARING OFFICER MEETING AND HEARING PROCESS 10
4.1 Hearing Officer Meetings 10
4.2 Hearing Officer Meetings to the Public 10
4.3 Meeting Agenda 10
4.4 Hearing Officer Correspondence 11
4.5 Receipt of Evidence Outside of Meeting and Public Contact with Hearing Officer 11
4.6 Recording of Meetings 12
4.7 Sworn Testimony 12
4.8 Addressing Hearing Officer 12
4.9 Rules of Decorum 13
CHAPTER 5 – REGISTRATION 14
5.1 Annual Registrations 14
5.2 Registration Upon Changes During Calendar Year 15
5.3 Registration Fees 16
5.4 Complete Information Required 18
5.5 Failure to Pay Registration Fee; Delinquent Registration 18 CHAPTER 6 – PERMITTED ANNUAL RENT INCREASES 19
6.1 Definitions 19
6.2 Procedures for Determination of Annual Increase 19
6.3 Eligibility 19
6.4 Determination of CPI Indexing Figure 19
6.5 Rent Schedule 20
6.6 Protest by Park Residents 21
6.7 Rent Administrator Action and Determination 21
6.8 Notice of Annual Increase to Residents 22
6.9 Spaces Previously Exempt under Civil Code Section 798.17 22
6.10 Vacancy Increases 22
Commented [A1]: Please check chapter and section titles listed and page numbering.
3 CHAPTER 7 - PETITION FOR SPECIAL RENT INCREASE TO PROVIDE A FAIR RETURN 22
7.1 Fair Return 22
7.2 Petition Form and Filing Fee 22
7.3 Maintenance of Net Operating Income (“MNOI”) Petition 23
7.4 MNOI Increase Pursuant to Readjusted to July 1, 1991 to June 30, 1992 NOI 30
7.5 Petition for Special Rent Increase Based on Fair Return Provision 32
7.6 Allowable Rent Increases and Petitions Following Special Rent Increase 33 CHAPTER 8 – SPECIAL RENT INCREASE PUBLIC HEARING PROCESS 33
8.1 General Petition Requirements 33
8.2 Filing Fee 35
8.3 Requirement for Submittal of Complete Petition 36
8.4 Rent Administrator Authority 42
8.5 Protest in Response or Opposition to Petition for Special Rent Increase 43
8.6 Public Hearings before the Mobile Home Park Rent Stabilization Hearing Officer 44 CHAPTER 9 – APPEALS TO THE CITY COUNCIL 49
9.1 Appeals 49
9.2 General Requirements 49
9.3 Exclusion of New Evidence at Appeal Hearing 51
9.4 Appeal Fee 51
9.5 City Council Authority 51
9.6 City Council Decision 52
9.7 Statute of Limitations 52
CHAPTER 10 – PETITION FOR RENT INCREASE BASED ON CAPITAL IMPROVEMENTS 53
10.1 Purpose 53
10.2 Scope of Capital Improvements: Amortization 53
10.3 Calculation of Allowable Increases 54
10.4 Amortization 55
10.5 Cost of the Capital Improvement 55
10.6 Improvements Necessary for Health and Safety 55
10.7 Petition Requirements 56
10.8 Filing Fee 57
10.9 Requirement for Complete Petition 57
10.10 Rent Administrator Authority 59
10.11 Protest in Response or Opposition to Petition for Capital Improvement Rent Increase 61
10.12 Hearings and Appeals on Capital Improvement Rent Increase Petitions 62
10.13 Applicability of Chapter 62
CHAPTER 11 – PREVAILING PARK OWNER PETITION FOR RECOVERY OF SPECIAL
RENT INCREASE PETITION AND HEARING COSTS INCURRED BEFORE THE
BOARDHEARING OFFICER
62 11.1 Scope 62
11.2 Eligibility 62
4 11.3 Burden of Proof 63
11.4 Definitions 63
11.5 Procedures 65
11.6 Filing Fee 67
APPENDIX “A” 72
5 CITY OF CALIMESA
ADMINISTRATIVE RULES FOR THE
IMPLEMENTATION OF THE MOBILE HOME RENT STABILIZATION
CHAPTER 1 - GENERAL PROVISIONS
1.1 Purpose and Interpretation.
A. These Administrative Rules and Regulations for the Implementation of the Mobile Home Rent Stabilization Ordinance (“Administrative Rules” or “Rules”) were adopted by the City Council of the City of Calimesa for the purpose of administering and enforcing the Mobile Home Rent Stabilization Ordinance (“Ordinance”), as codified in Chapter 9.05 of the Calimesa Municipal Code (“CMC”).
B. Except as otherwise expressly provided herein, all Rules are mandatory.
C. In the event of any conflict between the Ordinance and the Rules, the Ordinance shall prevail.
D. The City Council shall adopt and shall be the sole approving body of these Administrative Rules and any amendments to these Rules shall be made by resolution and shall be submitted to the City Council for review and approval.
E. These Rules shall be interpreted according to their terms, and in accordance with the purposes of the Ordinance. The City Council shall be the final arbiter of any dispute over the interpretation of any provision of these Rules.
1.2 Public Access and Open Meetings
All meetings of the City Council and all meetings conducted by the Mobile Home Park Rent Stabilization Hearing Officer shall be conducted in accordance with Article I, Section 3 of the California Constitution and the Ralph M. Brown Act (California Government Code Section 54950 et seq., as amended from time to time).
1.3 Posting and Delivery of Ordinance to Park Residents In accordance with CMC Section 9.05.010(C), the park owner or park management shall deliver a copy of the Ordinance to every mobile home owner or tenant now residing within their respective mobile home park or parks within thirty days of the adoption of the Ordinance or any amendments thereto, and within thirty days of execution of a rental agreement with any new resident. A copy of the Ordinance, and any amendments thereto, shall be maintained in the manager’s office or other common area location for review by the Park residents during business hours. Evidence of management’s compliance with this Rule shall be included in the annual registration statement filed by management with the City in accordance with Chapter 5 of these Rules.
6 CHAPTER 2 – DEFINITIONS
The following terms shall have the following meanings in these Rules:
2.1 “Annual Increase” means a permitted annual rent increase determined pursuant to CMC Section 9.05.080 and Chapter 6 of these Rules.
2.2 “Appeal” means an appeal filed with the City Council by a park owner or park resident, or their respective representative(s), in accordance with CMC Section 9.05.120 and Chapter 9 of these Rules, seeking review of a decision of the Mobile Home Park Rent Stabilization Hearing Officer on a petition for a special rent increase, a petition for a capital improvement rent increase, or a petition for temporary rent increase. “Appeal” shall include the completed appeal form, the required appeal fee, deposit(s), all supporting information and documentation, and the written justification for the appeal, as further provided in and required by these Rules and the appeal form.
2.3 “Bureau of Labor Statistics” means the Bureau of Labor Statistics, U.S. Department of Labor
2.4 “Capital Improvement Rent Increase” means a rent increase based on a capital improvement in accordance with CMC Section 9.05.090 and Chapter 10 of these Rules.
2.5 “City” means the City of Calimesa.
2.6 “City Council” means the City Council of the City of Calimesa.
2.7 “City Manager” means the City Manager of the City of Calimesa, or his/her designee.
2.8 “CMC” means the Calimesa Municipal Code.
2.9 “Consumer Price Index” or “CPI” means the CPI All-Items in Riverside-San Bernardino-Ontario, CA, All Urban Consumers, not seasonally adjusted, published by the Bureau of Labor Statistics, U.S. Department of Labor, or any successor index.
2.10 “Day” means a calendar day, unless otherwise expressly stated in these Rules.
2.11 “Exempt space” means either of the following: (a) a space exempt from rent control based upon a long-term lease or other rental agreement entered into pursuant to California Civil Code Section 798.17 (also referred to as a “leased space”), or (b) a space exempt from rent control pursuant to California Civil Code Section 798.45 (also referred to as “new construction”).
2.12 “Hearing Officer” or “Mobile Home Park Rent Stabilization Hearing Officer” means the person established by Chapter 9.05 of the Calimesa Municipal Code to perform such duties as may be delegated by the City Council.
7 2.13 “Lease” means a long-term lease or other rental agreement establishing the terms and conditions of a park tenancy, for any space exempt from rent control pursuant to California Civil Code Section 798.17.
2.14 “Management” means the owner of a mobile home park, or an agent or representative authorized to act on his/her behalf in connection with matters relating to a tenancy in the park and the Ordinance.
2.15 “Month-to-month space” means a space subject to rent control under the Ordinance.
Also known as a “regulated space”.
2.16 “Ordinance” or “CMC Chapter 9.05” means Chapter 9.05, Section 9.05.010, et seq., of the Calimesa Municipal Code, and as said Ordinance may be amended from time to time.
2.17 “Park Owner” or “Owner” means the owner or operator of a mobile home park or an agent or representative authorized to act on behalf of the owner or operator in connection with the maintenance or operation of such park and matters arising under the Ordinance.
2.18 “Petition” means a petition filed with the City pursuant to CMC Section 9.05.110 and Chapter 8 of these Rules for approval of (a) a capital improvement rent increase under CMC Section 9.05.090 and Chapter 10 of these Rules, (b) a petition for a special rent increase to provide a reasonable return on property under CMC Section 9.05.100 and Chapter 7 of these Rules, and (c) a petition for temporary rent increase in accordance with CMC Section 9.05.140 and Chapter 11 of Rules; and shall include the completed Petition form, the requisite filing fee, deposit(s), and all information and documentation supporting the requested rent increase as required by these Rules and petition form.
2.19 “Petitioner” means any person who submits a petition for a rent increase for a mobilehome park under CMC Chapter 9.05 and these Rules.
2.20 “Public hearing” or “hearing” means an evidentiary hearing before the Calimesa Mobile Home Rent Stabilization Hearing Officer on a petition for a capital improvement rent increase, a special rent increase and/or a temporary rent increase under CMC Section 9.05.110 and Chapter 8 of these Rules.
2.21 “Public Utilities Commission” or “PUC” means the California Public Utilities Commission.
2.22 “Regulated space” means a mobile home space subject to the Ordinance. Also known as a month-to-month space.
2.23 “Rent Administrator” or “RA” means the City Manager of the City of Calimesa, or his/her designee assigned to administer and implement the Ordinance in accordance with CMC Chapter 9.05 and these Rules.
2.24 “Special Rent Increase” means a rent increase to provide a reasonable return, including a maintenance of net operating income (“MNOI”) increase, a rent increased
8 based on a readjusted base year NOI, and/or a fair return rent increase, in accordance with CMC Section 9.05.100(D), (E), or (F) and Chapter 7 of these Rules.
2.25 “Temporary Rent Increase” means a temporary rent increase approved by the City for a specified period of time to reimburse the park owner for the reasonable costs incurred by the park owner in successfully preparing and presenting his/her petition for a special rent increase to the Hearing Officer in accordance with CMC Section
9.05.140 and Chapter 11 of these Rules.
2.26 “Vacancy” or “vacant” means:
A. For mobile home spaces subject to CMC Section 9.05.070(A), “vacancy” means a change in ownership of a mobile home occupying a space subject to rent control but excludes a change of ownership between husband and wife, or parent and child, or a change of ownership made for estate planning purposes.
B. For mobile home spaces subject to CMC Section 9.05.070(B), “vacancy” means a mobile home space upon which there is no mobile home or a mobile home space upon which there is mobile home owned by the park owner.
2.27 “Vacancy Increase” means:
A. For spaces subject to CMC Section 9.05.070(A), “Vacancy Increase” means a rent increase upon vacancy as defined in Section 2.25(A) of this Chapter.
B. For park owner-owned mobile homes or space upon which there is no mobile home, “Vacancy Increase” means a rent increase upon vacancy as defined in Section 2.25(B) of this Chapter.
CHAPTER 3 – POWERS AND DUTIES
3.1 City Council. Within the limitations provided by the Ordinance and law, the City Council shall have the following powers and duties:
A. To conduct any appropriate periodic review of the provisions of the Mobile Home Rent Stabilization Ordinance as deemed necessary and appropriate by the City Council.
B. To adopt rules, regulations, policies, guidelines and forms for use by the City Manager, Hearing Officer, park owners and park residents in seeking rent increase under Chapter 9.05 of the Calimesa Municipal Code.
C. To hear appeals from decisions of the Mobile Home Rent Stabilization Hearing Officer on petitions for rent increases.
D. To interpret and apply the Ordinance and Rules in accordance with the purpose and intent of the Ordinance.
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9 E. To carry out such other powers and duties as deemed necessary by the City Council to implement and administer CMC Chapter 9.05 and these Rules.
3.2 Mobile Home Park Rent Stabilization Hearing Officer. Within the limitations provided by the Ordinance and law, the Hearing Officer shall have the following powers and duties:
A To hold meetings from time to time as requested by the Mayor, the City Council, the City Manager, or upon the filing of a petition with the City Clerk.
B. To examine any rental agreement submitted to the Hearing Officer by any party to the rental agreement for the purpose of determining whether the space is subject to rent control under this chapter when reviewing a petition for a rent increase under this chapter.
C. To receive, investigate, conduct hearings on and approve, conditionally approve or disapprove petitions for, or protests against, increases of rents in mobile home parks. All hearings of the Hearing Officer shall be open to the public.
D. To conduct such studies, surveys, investigations and public hearings and obtain such information as may be necessary to carry out his/her duties.
E. Subject to the approval of the City Council, to adopt, promulgate, amend and rescind such administrative rules and regulations as the Hearing Officer finds reasonable and necessary for the conduct of his/her affairs and to implement and administer the provisions of this chapter.
F. Except where such rules are in direct conflict herewith, the Hearing Officer shall be subject to the regulations and standards of conduct for city commissioners, committee members, board members and hearing officers as established and amended from time to time by resolution of the City Council.
G. To keep records of their proceedings which shall be submitted to the City Council and open for inspection by the public.
H. To perform such other duties as may be delegated to the Hearing Officer by the City.
3.3 Rent Administrator. Within the limitations provided by the Ordinance and law, the Rent Administrator shall have the following powers and duties:
A. To review and rule upon protests filed against annual rent increases filed pursuant to CMC Section 9.05.080 and Chapter 6 of these Rules.
B. To review and evaluate petitions for rent increases and appeals filed pursuant to the Ordinance and these Rules to determine if the petitions are complete, and to require submittal of additional information and documentation as may be required for the Rent Administrator to deem a petition or appeal complete, to Formatted: No underline
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10 schedule public hearings before the Hearing Officer on such petitions or the City Council on any appeal, and to make recommendations to the Hearing Officer and the City Council in accordance with CMC Chapter 9.05 and these Rules.
C. To develop forms, procedures and policies for administration and implementation of the Ordinance and these Rules to the extent not inconsistent with the Ordinance, Rules or forms adopted by the City Council.
D. To serve the park owner and park residents with a copy of the final decision of the Hearing Officer on a petition, and the final decision of the City Council on any appeal.
E. To perform such other duties as are specified in CMC Chapter 9.05 and these Rules and take such other actions as may be necessary to implement and administer the provisions of the Ordinance and these Rules.
CHAPTER 4 - MOBILE HOME PARK RENT STABILIZATION HEARING OFFICER
MEETING AND HEARING PROCESS
4.1 Hearing Officer Meetings. Hearing Officer meetings may be called at any time by the Rent Administrator (“RA”) or the Hearing Officer appointed by the City, for the Hearing Officer to conduct evidentiary hearings on applications for special rent increases and temporary rent increases based on special rent petition and hearing costs, or appeals from RA decisions on applications for capital improvement rent increases or emergency capital improvement rent increases, and to consider any other matters within the jurisdiction of the Hearing Officer pursuant to the Ordinance. The Hearing Officer may adjourn any meeting to a date, time and place specified in the order of adjournment.
If Hearing Officer is absent from any meeting, the RA or City Clerk may declare the meeting adjourned to a stated time and place, and he/she shall cause a written notice of the adjournment to be given in the same manner as provided for meetings.
A copy of the order or notice of adjournment shall be conspicuously posted on or near the door of the place where the meeting was held within twenty-four (24) hours after the time of the adjournment.
4.2 Hearing Officer Meetings Hearings to be Public. All meetings hearings conducted by of the Hearing Officer on rent increase petitions shall be open to the public.
4.3 Meeting Agenda. The Hearing Officer agenda shall be prepared in accordance with the following rules:
A. Definition. As used in these Rules, the term “agenda” means (1) the order of business, including all items and matters to be discussed and/or considered at a Hearing Officer meeting; and (2) all staff reports, communications, resolutions, contract documents, proposals, expert reports, petitions, oppositions, appeals, and other documents or matters to be submitted to the Formatted: Font: Bold
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11 Hearing Officer for consideration and/or action at a meeting.
B. Submittal Deadlines.
1. Except as otherwise provided in Paragraph (3)below, Chapter 8 of these Rules concerning public hearings, and/or Chapter 9 concerning appeals, aAll documents and materials of any kind proposed by any person to be included in an Hearing Officer agenda on any non-public hearing matter shall be delivered to the RA not later than 12:00 noon on the day which is fourteen (14) days preceding a Hearing Officer meeting (excluding the day of the meeting).
2. Except as otherwise provided in Paragraph (3), below, Chapter 8 of these Rules concerning public hearing items, and/or Chapter 9 concerning appeals, tThe Agenda shall be delivered to the Hearing Officer on the sixth (6th) calendar day preceding the meeting to which it pertains (excluding the day of the meeting), and shall be made available to the public after submission to the Hearing Officer.
3. All rent increase petitions, including petitions for capital improvement rent increases (pursuant to CMC Section 9.05.090), petitions for an MNOI rent increases, readjustment to base year NOI, and/or fair return rent increases (pursuant to CMC Section 9.05.100), and/or petitions for temporary rent increases (pursuant to CMC Section 9.05.140), and any all oppositions or other responses to any rent increase petition, shall be submitted to the RA in accordance with timing requirements of CMC Chapter 9.05 and Chapters 8, 9, 10 and 11 of these Administrative Rules. Documents submitted after the time deadlines specified therein shall not be admitted into evidence at a rent increase hearing except upon a finding of good cause by the Hearing Officer pursuant to Rule
8.6(C)(7).
4. All appeals to the City Council, and opposition or responses to any appeal, shall be submitted to the RA in accordance with the time deadlines and other requirements set forth in CMC Section 9.05.120 and Chapter 9 of these Rules.
4.4 Hearing Officer Correspondence
A. No document or other writing which is exempt from disclosure by the Public Records Act (Section 7920.000 et seq. of the California Government Code), or any other provision of law, shall be disclosed or treated as a public record.
B. Except as otherwise provided by law, registration forms, petitions for rent increases , opposition or response to any rent increase petition, appeals and/or any opposition or response to any appeal, along with any and all supporting documentation or other materials submitted in response to any such petition, opposition and/or appeal, shall be public records and open to inspection in accordance with the Public Records Act (Government Code Section 792.000 et Commented [A2]: Modified to limit the 14-day deadline to nonpublic hearing matters.
Commented [A3]: Darlene - The intent is that a park owner or residents cannot submit using the 14-day deadline under Subsection (1) on a public hearing item. So, this means with a capital improvement petition, the residents must submit their opposition within 30 days of notification the petition is complete (or the park owner has refused to file any additional documents), and then the hearing must commence no later than 15 days after that (to meet the 75 days under 9.05.090). I think that eliminates the time crunch we discussed.
12 seq.). Agendas, including any staff reports, minutes, correspondence and other documentation prepared by Staff for any meeting of the Board Hearing Officer shall not be public records until distributed to the Hearing Officer prior to the Hearing Officer meeting except as may be otherwise required by the California Public Records Act (California Government Code Section 7920.000, et seq.) and/or the Ralph M. Brown Act (Government Code Section 54950, et seq.).
4.5 Receipt of Evidence Outside of Meeting and Public Contact with Hearing Officer A. Except as otherwise provided in these Rules, the Hearing Officer shall not, after a petition necessitating a public hearing has been filed with the City, solicit or receive evidence outside of the public hearing on such petition.
B. Receipt of unsolicited letters or other documents by the Hearing Officer shall not constitute a violation of Subsection (A) of this Rule but shall be disclosed as provided in Subsection (C) herein. Said documents shall be made a part of the record at the time of the public hearing on a rent increase petition unless such documents are submitted after any filing deadline set forth in Chapter 9.05 or these Rules. Any late submitted documents shall not be admitted into evidence at a rent increase hearing except upon a finding of good cause by the Hearing Officer pursuant to Rule 8.6(C)(7).
C. A hearing officer who has received evidence outside of the public hearing, or who has viewed the subject property, or is familiar with the subject property, shall fully disclose at the public hearing such evidence and his/her observations and familiarity with the property and/or subject matter so that the petitioner, opponent, and other interested persons may be aware of the facts or evidence upon which s/he is relying and have an opportunity to controvert it. All written evidence received or offered to the Hearing Officer outside of the hearing shall be filed with the Rent Administrator.
4.6 Recording of Meetings
All Hearing Officer meetings, including any public hearings on rent increase petitions, shall be recorded by the City in accordance with the procedures for recording of City Council and Planning Commission meetings. The Hearing Officer may, in his/her discretion, direct that the Rent Administrator keep minutes of each meeting.
4.7 Sworn Testimony.
A. During public hearings on rent increase petitions, including petitions for capital improvement rent increases, special rent increases and temporary rent increases, the Hearing Officer shall require all witnesses to be sworn in and testify under oath, and all testimony shall be under penalty of perjury. In any other proceedings or meetings before the Hearing Officer, the Hearing Officer may require any person addressing the Hearing Officer to be sworn as a witness and to testify under oath and under penalty of perjury.
13 B. During any appeal before the City Council from any decision of a Hearing Officer on a rent increase petition, the City Council shall require all witnesses to be sworn in by the City Clerk and testify under oath, and all testimony on any appeal shall be under penalty of perjury.
4.8 Addressing the Hearing Officer
The following rules, in addition to those set out in this Chapter 4 and Rule 8.6, “Public Hearings before Mobile Home Rent Stabilization Hearing Officer”, shall govern public testimony before the Hearing Officer.
A. Manner of Addressing the Hearing Officer. Each petitioner or other person desiring to address the Hearing Officer shall state his/her name and address for the record, state the subject s/he wishes to discuss, state whom s/he is representing if s/he represents an organization or other person. Presentation time shall be limited to five (5) minutes, or as otherwise defined by the Hearing Officer. Except as otherwise allowed by the Hearing Officer during examination of a witness, all comments or other discussion by any person shall be addressed to the Hearing Officer.. No question shall be asked of City staff or another person without the permission of the Hearing Officer.
B. Group Spokesperson. In order to expedite matters and to avoid repetitious presentations, whenever any group of persons wishes to address the Hearing Officer on the same subject matter, it shall be proper for the Hearing Officer to request that a spokesperson be chosen by the group to address the Hearing Officer and, if additional matters are to be presented by any other member of said group, to limit the number of such persons addressing the Hearing Officer.
C. After Public Hearing Closed. After a public hearing has been closed, no member of the public shall address the Hearing Officer from the audience on the matter under consideration without first securing permission to do so by the Hearing Officer.
D. Continuance of Hearings. Any public hearing being held or noticed or ordered to be held by the Hearing Officer or Rent Administrator may, by order or notice of continuance, be continued or re-continued to any subsequent meeting in the manner provided herein for adjourned meetings; provided that if the hearing is continued to a time less than twenty-four (24) hours after the time specified in the order or notice of hearing, a copy of the order or notice of continuance of hearing shall be posted immediately following the meeting at which the order or notice of continuance was adopted or made.
4.9 Rules of Decorum
A. Hearing Officer. While the meeting is in session, the Hearing Officer shall be responsible for preserving order and decorum.
B. Employees. Members of the Administrative staff and other employees of the City shall observe the same rules of order and decorum members of the public
14 or as otherwise instructed by the Hearing Officer, provided that members of City staff may leave their seats during a meeting without first obtaining the permission of the Hearing Officer. Any staff member desiring to address the Hearing Officer, or any members of the public shall first be recognized by the Hearing Officer. All remarks shall be addressed to the Hearing Officer and not any member of the public, except as otherwise authorized by the Hearing Officer during examination of a witness.
C. Unacceptable Conduct. Any person making impertinent, slanderous, or profane remarks or who becomes boisterous while addressing the Hearing Officer or during examination of a witness shall be called to order by the Hearing Officer, and, if such conduct continues, may at the discretion of the Hearing Officer be ordered barred from further questioning any witness, addressing the Hearing Officer and/or ordered to leave the meeting.
D. Members of the Audience. Any person in the audience who engages in disorderly conduct such as hand clapping, stamping of feet, whistling, using profane language, yelling, and similar demonstrations which disturb the peace and order of the meeting, or who refuse to comply with the lawful order(s) of the Hearing Officer shall, upon instructions from the Hearing Officer, be removed from the meeting room.
CHAPTER 5 - REGISTRATION
5.1 Annual Registrations
A. Deadline for Submittal. Annual registration is due no later than the 31st of January each year and shall be submitted under penalty of perjury on the Cityapproved form and shall include all information and documentation set forth in Subsections (B) through (H) of this Rule 5.1.
B. Applicable Time Period. The owner shall provide all information and documentation for all categories listed in Subsections (C) through (H) for (i) the time period extending from January 1st of the immediately preceding calendar year and (ii) current as of the date of submittal of the annual registration statement
C. Current Rent Rolls. The park owner shall provide a list of all spaces by space number or other identifying number/address, and copies of the rent rolls showing all current rents for all spaces in the park.
D. Month-to-Month Spaces. The park owner shall provide the current rent charged for each month-to-month space; the effective date of the current rent for each space; the utilities, housing services and amenities included in the space rent for each month-to-month space; the utilities, housing services and amenities charged separately from the space rent for each space; and for any space that came off an exempt lease or rental agreement during the immediately preceding calendar year, the lease expiration date and the monthly space rent in effect as of the lease or rental agreement expiration or
15 termination date.
1. If more than one rent increase was imposed on a space during the immediately preceding calendar year, the registration form shall also include all other rent increases imposed on the space during the immediately preceding calendar year; the effective date of each other rent increase; the amount of each other rent increase; and the provision of the Ordinance or other basis upon which each other rent increase was imposed (e.g., exempt space, CMC Section 9.05.080, CMC Section
9.05.100).
2. If any utilities, housing services or amenities were previously included in the rent, but were separated from the rent during the immediately preceding calendar year, the annual registration shall also include a list of each utility, service and/or amenity separated from the rent during the immediately preceding calendar year; the date that the separate billing became effective; the amount by which rent was reduced; and the initial amount charged for each separately billed utility, service and/or amenity.
E. Exempt Spaces.
1. For each space exempt pursuant to CMC 9.05.020(A), the park owner shall provide a list of the space numbers; current space rent charged for each space; the utilities, housing services and amenities included in the space rent for each exempt space; the utilities, housing services and amenities charged separately from the space rent for each exempt space; and the commencement date and expiration date or termination date for each exempt long-term lease or other rental agreement). .
2. For each space exempt under CMC 9.05.020(B), the park owner shall provide a list of the space numbers; current space rent for each space; and dates of construction of each space.
F. Vacant Spaces. The park owner shall provide a list of all vacant spaces in the park, the dates of vacancy during the immediately preceding calendar year up to and including the date of registration, and for any space subject to CMC
9.05.070(A) and (B), the initial rent upon re-occupancy following vacancy during the immediately preceding calendar year up to and including the date of registration and the utilities, housing services and amenities included in the space rent and charged separately from the space rent for each time period.
G. Park Ownership Changes. The park owner shall provide the date of any change of ownership of the park; and the full name and all other registration information for the new park owner, as of the date of submittal of the Petition, and during the immediately preceding calendar year.
H. Management-Owned Mobile Homes. The park owner shall provide the date each mobile home became owned, rented, leased or used by management; the space numbers for all such mobile homes owned, rented, leased and/or
16 used by management; dates of park ownership, rental, lease or use; current rent for each space; the utilities, housing services and amenities included in the current rent for each space, and the utilities, housing services and amenities charged separately from the current rent for each space; and if owned, rented, leased or used by the park owner or manager during the immediately preceding calendar year, the utilities, housing services and amenities included in the rent for each space for the immediately preceding calendar year and the utilities, housing services and amenities charged separately from the rent for the immediately preceding calendar year.
5.2 Updated Registration Upon Changes During Calendar Year Parks subject to the Ordinance shall submit an updated registration statement to the Rent Administrator on or before June 30th of each calendar year under penalty of perjury in accordance with Rule 5.1 and the following provisions:
A. Changes in Space Status. The updated annual registration statement shall include complete information on the change in status of any space that occurred since the last annual registration statement was filed in accordance with the following requirements:
1. As used herein, “change in status” means (i) any change in the occupancy of a space as a month-to-month space, exempt space or vacant space; or (ii) any change in ownership, rental or use of a mobile home from a mobile home owned by a tenant to a mobile home owned, leased, rented or used by management; or (iii) any change in the mobile home occupying a space, such as the placement of a new mobile home in a space from outside the Park, or the transfer of a mobile home from one space in the Park to another space in the same Park; and (iv) any other change in the status of a mobile home and/or occupant in a space., .
B. Park Ownership Changes. The updated registration form shall include complete information on all park ownership changes that have occurred since the most recent annual registration statement was filed. The updated registration statement shall include all information required by Rule 5.1 for the new owner and any new or modified information from the prior registration statement.
C. Management Changes. The updated registration statement shall include all changes in the park’s onsite or offsite management that have occurred since the last annual registration statement was filed including the information required by Rule 5.1 for the new manager, and any new or modified information from the prior registration statement.
The updated annual registration statement shall be filed with the Rent Administrator on the City-approved form.
5.3 Registration Fees
17 A. Establishment of Registration Fee. The initial registration fee shall be fortythree dollars and eight cents ($43.08) per year, or three dollars and fifty-nine cents ($3.59) per month per regulated month-to-month space in each park subject to the Ordinance. The City Council may amend from time to time, by resolution, the registration fee and penalties for late registration as well as a failure to register for each regulated mobile home park. The park owner shall pay the annual registration fee on a monthly basis, no later than the thirtieth (30th) day of each month. The park owner shall not be current on the registration fee until payment of the required registration fee for that month for all regulated spaces in the park. No registration fee shall be charged to any exempt space.
B. Non-Compliance. A park owner’s failure or refusal to pay any required registration fees in a timely manner shall also be considered delinquent registration and/or a failure to register or delinquent registration as outlined in Rule 5.5.
C. Waiver of Penalties. A waiver of the penalty for failure to pay the required registration fees may be granted by the Rent Administrator upon a showing of exceptional circumstances beyond the control of the park owner, which made it impossible for the registration fees to be made in a timely manner.
D. Resident Payment.
1. The park owner may bill a maximum of one-half of the total monthly registration fee paid to the City to the regulated spaces in the Park each month, not to exceed $1.79 per month per space (the “Park Resident Registration Fee Portion”). The park owner shall not bill the residents of any regulated space in a lump sum for the residents’ share of the annual registration fee ($21.48). The City Council may amend from time to time, by resolution, the amount that a park owner may bill to each regulated space in the mobile home park. The Park Resident Registration Fee Portion may be included in the monthly statement of rent due, but shall be itemized separately, and shall not be deemed to be a part of the rent or included in the rent base when calculating rent increases. At no time shall the amount of registration fee billed to any resident on a rent statement exceed one-half of the monthly amount paid by the Park Owner to the City for that space for the relevant year, except as otherwise provided in paragraph (4) of this Rule 5.3(D) regarding retroactive billing.
2. Residents shall pay their Park Resident Registration Fee Portion to the park owner not later than the deadline for payment of space rent under the rental agreement.
3. No park resident shall be charged any late fee, penalty or other charge in connection with his/her late payment or nonpayment of the Park Resident Registration Fee Portion (collectively “Registration Late Fee”) Formatted: Not Superscript/ Subscript
18 except in accordance with the following provisions:
a. The Park Resident Registration Fee Portion shall be late if not paid prior to the date that space rent is defined as “late” under the applicable rental agreement for the space. If there is no rental agreement, or the rental agreement does not include any late charge provision, the resident portion shall be late if not paid prior to the first of the month immediately following the month in which the registration fee is due..
b. The Registration Late Fee charged to a regulated space shall not exceed the monthly Park Resident Registration Fee Portion due for the space, or not more than $1.79. The maximum amount of a Registration Late Fee paid for any regulated space shall be the total annual registration fee due from the Park Owner for that space, or not more than $21.48 from any regulated space. This limit applies regardless of the number of months that a resident fails to pay, or pays is late paying any or all of the Park Resident Registration Fee Portion, and regardless of the number of occupants of the regulated space.
4. If a park owner fails or neglects to bill the residents of a regulated space for the Park Resident Registration Fee Portion (or any part of such portion) for any month, the park owner may retroactively bill the park residents of a regulated space for the previously unbilled registration fees only if the park owner provides the residents with the same time period to pay as the park owner was late in billing for the fee. The park owner shall not retroactively bill the park residents for any unbilled fees covering any period of time longer than 12 months prior to the date of retroactive billing. The park owner shall not charge late fees or any other charges on the payment of any retroactively billed registration fees if the Park Resident Registration Fee Portion is paid by the residents within the time allowed by this sub-paragraph but may charge a Registration Late Fee if paid thereafter. .
5. Except as otherwise provided in the Ordinance or this Rule, no other charges, fees, penalties, fines or payments of any kind shall be charged to, imposed on, or demanded or collected from any resident of any regulated space in connection with any registration fee, nonpayment of registration fee and/or late payment of any registration fee.
6. In each annual and updated registration statement and rent schedule filed with the City, the park owner shall list the amounts billed to and collected from each regulated space for the Park Resident Registration Fee Portion, Registration Late Fee, and any retroactively billed Park Resident Registration Fees, for the period covered by the registration statement and rent schedule, in accordance with the City-approved forms.
19 5.4 Complete Information Required.
The park owner shall submit all information and documentation required by the Cityapproved registration form. If the RA determines that the registration form is incomplete, or indicates a possible violation of the Ordinance, the RA shall have the authority to request any additional information or documentation from the owner. No registration shall be deemed complete until the RA issues a written determination to the owner that the owner submitted all information required by this chapter. Within thirty (30) days after a registration form is submitted, the RA shall either notify the owner that the registration form is complete or notify the owner of the additional information or documentation required in order to complete the registration process.
5.5 Failure to Pay Registration Fee; Delinquent Registration A park owner who fails to comply with the registration provisions outlined in Section
9.05.060 of the Ordinance or this Chapter, including but not limited to a failure to submit the complete annual registration form or a failure to pay the required registration fee, shall not be entitled to charge, collect, retain, or apply for any rent increase permitted by the CMC. A park owner shall not be eligible for an Annual Increase unless his/her park is registered as required by the Ordinance and this Chapter, and the park owner is current on payment of his/her monthly registration fees required by CMC Section 9.05060(F) and Rule 5.3. No petition for a Capital Improvement Rent Increase, Special Rent Increase or Temporary Rent Increase shall be filed with the City until the park owner receives written confirmation from the RA that the park’s registration statement(s) and payment of the park’s monthly registration fees are current, as required by the Ordinance and these Rules. This provision shall not apply to any park exempt from the Ordinance pursuant to State law.
No Capital Improvement Rent Increase, Special Rent Increase or Temporary Rent Increase shall be approved by the City unless the park owner is currently registered and current on payment of his/her monthly registration fees as required by CMC Section 9.05.060 and Chapter 5 of these Rules.
CHAPTER 6 – PERMITTED ANNUAL RENT INCREASES
6.1 Definitions. In addition to the definitions set forth in Chapter 2, the following definitions shall be used in determining an Annual Increase under Section 9.05.080 of the Ordinance and this Chapter:
A. “Annual Increase” or “Permitted Annual Increase” means an Annual Increase in space rent based on eighty percent (80%) of the increase in the CPI over the prior twelve (12) months.
B. “Current space rent” means the space rent in effect for a space as of the date of issuance of a notice of rent increase based on an Annual Increase determined in accordance with this Chapter.
6.2 Procedures for Determination of Annual Increase
Except as otherwise provided in the Ordinance, a park owner may increase the rent
20 on a mobilehome space once every twelve (12) months by 80% of the increase in the CPI during the preceding twelve (12) months.
6.3 Eligibility. A park owner shall not be eligible for an Annual Increase for any regulated space in his/her park unless (i) the park is currently registered with the City and otherwise in compliance with these Rules and the Ordinance, and (ii) the space has not received a rent increase or other increase in rent during the preceding twelve months.
6.4 Determination of CPI Indexing Figure. In determining an Annual Increase under CMC Section 9.05.080, the park owner shall comply with the following requirements.
A. Rent Administrator Provision of CPI Indexing Figure. Management shall obtain the CPI from the U.S. Department of Labor, Bureau of Labor Statistics, and shall use the CPI most recently available to determine the CPI Indexing Figure under this Chapter. Management may contact the Rent Administrator to confirm the applicable CPI Indexing Figure to be used in calculating the Annual Increase.
B. Explanation of Rent Increase. The notice of rent increase issued to any park resident shall include an explanation of the method and calculations by which the rent increase was determined under this Rule.
6.5 Rent Schedule. Pursuant to CMC Section 9.05.08(D), concurrently with issuance of the notice of rent increase to the affected residents, management shall file a rent schedule with the Rent Administrator, in accordance with the following requirements:
A. Form. The rent schedule shall be consistent with the form approved by the City and shall be accompanied by a declaration under penalty of perjury under the laws of the State of California, certifying that the information contained in the schedule is true and correct.
B. Contents. The schedule shall contain all of the following information:
1. The name of the park..
2. The complete name of the park owner, and if ownership changed during the prior twelve months, the full name, business address, mailing address of the new owner, and the date of the current owner’s purchase or acquisition of the park.
3. A list of all spaces to be subject to the proposed Annual Increase.
4. The date of the last rent increase imposed for each space, and the reason and type of rent increase. If the last rent increase charged was based upon a rent increase authorized under the Ordinance, the schedule shall specify the type of rent increase, the applicable section or subsection under the Ordinance, the effective date of approval of the rent increase, the methodology used, and the amount of the rent
21 increase approved by the City and/or pursuant to the Ordinance. If the last rent increase charged was based on a Vacancy Increase, the schedule shall specify the method by which the Vacancy Increase and the applicable reason under CMC Section 9.05.070 and provide any supporting documentation. If the last rent increase charged was based on a lease or rental exempt from this chapter pursuant to CMC Section
9.05.020(A), the schedule shall specify the method by which the rent increase was determined based on the lease and provide supporting documentation.
5. A list of all spaces subject to the Annual Increase.
6. The rent currently being charged for each affected space as of the date of service of the notice of rent increase.
7. The amount of the proposed Annual Increase, and the method and calculation by which the proposed Annual Increase for each space was determined under Subsection (B) of this Rule 6.5.
8. The proposed new rent for each space is based on the proposed Annual Increase.
6.6 Protest by Park Residents.
A. Form. The Rent Administrator may adopt a form for use by park residents in filing a protest to any proposed Annual Increase. Use of the form shall be optional, so long as the protest is in writing, and all information requested by the form is contained in the written protest.
B. Contents. A protest shall include the following information:
1. The name, address and telephone number of the resident filing the protest. If the protest is filed by a resident representative, the protest shall also include the full name, address, and telephone number of the resident representative..
2. The grounds for the protest, including the specific Ordinance or Rules provision(s) allegedly violated by the park owner, the factual basis for the protest, and the documentation supporting the protest.
3. Proof of service of the protest on the park owner by personal delivery or mailing by first-class mail, postage pre-paid, to the last known business address for management.
4. A declaration under penalty of perjury under the laws of the State of California that the information contained in the protest is true and correct.
22 6.7 Rent Administrator Action and Determination.
A. Upon receipt of the protest, the Rent Administrator shall serve management with written notice of receipt of the resident protest, along with a copy of the protest.
B. In reviewing a protest filed by the park resident(s), the Rent Administrator may request such additional information and/or documentation from the park owner or park residents as the Rent Administrator determines may be necessary to resolve the protest. The Rent Administrator’s decision shall include findings pursuant to CMC Section 9.05.080(H).
C. Within thirty (30) days of receipt of the protest, the Rent Administrator shall send a copy of his/her written decision by first-class mail, postage prepaid, to management and to each resident or other interested person who filed the protest. The Rent Administrator’s decision shall be effective upon deposit of the decision in the U.S. Mail.
6.8 Notice of Annual Increase to Residents.
A park owner shall notify the residents affected by the Annual Increase in accordance with State Law. A park owner shall not notice an Annual Increase prior to prior to filing the rent schedule with the City, but such may occur concurrently.
6.9 Spaces Previously Exempt under Civil Code Section 798.17.
In the event that a space was previously exempt from the Ordinance under a lease or other long-term rental agreement pursuant to California Civil Code Section 798.17, upon expiration or termination of the exempt lease or rental agreement the base space rent, for purposes of calculating the Annual Increase, shall be the rent in effect as of the date of expiration of the exempt lease or other rental agreement, and the previously exempt space shall thereafter be subject to all provisions of the Ordinance and these Rules.
6.10 Vacancy Increases.
In addition to the information set forth in Rule 6.5, the park owner shall also include the following information regarding Vacancy Increases in the park rent schedule or updated schedule filed with the City:
A. Parks Subject to CMC Section 9.05.070(A)
For any regulated park, or portion thereof, subject to CMC Section 9.05.070(A), the park owner shall include all Vacancy Increases imposed on any spaces exempt from the Ordinance in the park rent schedule or updated park rent schedule filed with the City pursuant to CMC Section 9.05.060.
B. Parks Subject to CMC Section 9.05.070(B)
Formatted: No underline
23 For any regulated parks subject to CMC Section 9.05.070(B), the park owner shall include all Vacancy Increases imposed on any park owner-owned mobile homes, or any mobile homes moved onto a vacant space, in the park rent schedule or updated park rent schedule filed with the City pursuant to CMC Section 9.05.060.
CHAPTER 7 - PETITION FOR SPECIAL RENT INCREASE TO PROVIDE A FAIR RETURN
7.1 Fair Return
It is the intent of the Ordinance to establish rents at a level which will provide park owners with a fair and reasonable return while protecting the residents from excessive rent increases.
7.2 Petition Form and Filing Fee
All petitions for a Special Rent Increase pursuant to CMC Sections 9.05.100 and
9.05.110 must be submitted, in accordance with the requirements set forth in this Chapter and Chapter 8 of these Rules.
7.3 Maintenance of Net Operating Income (“MNOI”) Petition An owner who believes the Annual Increases provided by the Ordinance are not sufficient to provide him/her with a fair return, may apply to the City Rent Administrator for a rent increase for the park on the ground that an additional rent increase is necessary to allow the park owner to maintain net operating income (“MNOI”) in accordance with CMC Section 9.05.100(A) through (D). A petition for an increase under these provisions shall hereinafter be referred to as a “Petition For MNOI Increase” or “MNOI Petition”.
A. Complete Petition Required. An MNOI Petition shall not be deemed complete unless the Park Owner submits a Petition as required by the Ordinance and these Rules, including all information and documentation required by the Petition form, and payment in full of the filing fee and any applicable deposit(s).
B. Definitions. For purposes of Special Rent Increase proceedings under CMC Sections 9.05.100 and 9.05.110, and this Chapter, the following definitions shall be used:
1. “Base Year”: Base Year shall be determined in accordance with CMC Section 9.05.100(B)(1).
a. Examples of Base Year Determination
Example #1 (“Base Year” under CMC Section
9.05.100(B)(1)(a)): Green Park files a petition for a Special Rent Increase under CMC 9.05.100(D) for the first time in 2012. The “Base Year” is the fiscal year commencing July 1, 1991 and
24 ending June 30, 1992 (or “fiscal year 1991/1992”).
Example #2 ( “Base Year” under CMC Section
9.05.100(B)(1)(b)): Blue Park obtained approval of a Special Rent Increase under CMC Section 9.05.100(D) for the first time in 2006. Calendar year 2005 was the “current year” used in determining the Special Rent Increase in the 2006 petition. In 2013, Blue Park petitions for another Special Rent Increase under CMC Section 9.05.100(D). The “Base Year” to be used to evaluate the 2013 petition is calendar year 2005.
Example #3 (“Base Year under CMC Section 9.05.100(B)(1)(b)):
Red Park filed a petition for a Special Rent Increase under CMC Section 9.05.100(D) in 2003, which was denied by the City.
Calendar year 2002 was the “Current Year” in the 2003 petition.
In 2014, Red Park files another petition for a Special Rent Increase under CMC Section 9.05.100(D). The “Base Year” to be used to evaluate the 2014 petition is fiscal year 1991/1992.
2. “Base Year CPI”: The Base Year CPI shall be determined in accordance with CMC Section 9.05.100(B)(2).
a. Examples of “Base Year CPI”
Example #1 (Base Year CPI under CMC Section
9.05.100(B)(2)(a)): The “Base Year CPI” for purposes of calculating an initial MNOI Rent Increase under CMC Section
9.05.100(D) or 9.05.100(E) and this Chapter shall be 146.2.
Example #2 (Base Year CPI under CMC Section
9.05.100(B)(2)(b)): Blue Park obtained approval of a special rent increase under CMC Section 9.05.100(D) for the first time in 2006. Calendar year 2005 was the “current year” used in determining the Special Rent Increase in the 2006 petition, and the “current year CPI” used in evaluating the 2006 petition was 211.1. In 2013, Blue Park petitions for another Special Rent Increase under CMC Section 9.05.100(D). The “Base Year CPI” to be used in evaluating the 2013 petition is 211.1.
Example #3 (Base Year CPI under CMC Section
9.05.100(B)(2)(b)): Red Park filed a petition for a Special Rent Increase under CMC Section 9.05.100(D) in 2003, which was denied by the City. Calendar year 2002 was the “Current Year” in the 2003 petition, and the Current Year CPI was 212.5. In 2014, Red Park files another petition for a Special Rent Increase under CMC Section 9.05.100(D). The “Base Year CPI” to be used in evaluating the 2014 petition is 146.2.
b. The Rent Administrator shall be responsible for determining the
25 Base Year CPI.
3. “Comparable park” shall have the meaning set forth in CMC Section
9.05.100(B)(3).
4. “Current Year” shall have the meaning set forth in CMC Section
9.05.100(B)(4).
5. “Current Year CPI” or “Current CPI” shall have the meaning set forth in CMC Section 9.05.100(B)(5). The Rent Administrator shall be responsible for determining the Current CPI.
6. “Gross Income” or “GI” includes all income categories set forth in CMC Section 9.05.100(B)(6)..
a. Utility services: In accordance with CMC Section
9.05.100(B)(6)(d), gross income shall not include any income from utility service(s) if the rates are subject to PUC jurisdiction, unless the utility income is attributable solely to use of the common areas and documentation is provided which separates the common area utility services income from any income attributable to the provision of the utility service to the individual mobile homes).
7. [Blank].
8. “Net Operating Income” or “NOI” means Gross Income less Operating Expenses.
9. “Operating Expenses” includes all operating expense categories identified in CMC Section 9.05.100(B)(7), and subject to the following additional requirements:
a. Management expenses pursuant to CMC Section
9.05.100(B)(7)(b) shall be subject to the following)::
(i) As provided in CMC Section 9.05.100(B)(7)(b),
management expenses which have not increased by more
than the CPI since the Base Year, or which are the same percentage of gross income in the Base Year and in the
Current Year, are presumed to be reasonable; provided
that, management or park residents may rebut this
presumption by clear and convincing evidence. Rebuttal
evidence may include but is not limited to evidence that the fees are exceptionally high by industry standards
and/or exceptionally high relative to the value of the
services provided or by evidence that the level of
management services has increased or decreased since
the Base Year.
26 (ii) In the event that documentation of actual Base Year management expenses is not available, Base Year
management expenses shall be estimated by taking the
Current Year management expenses and decreasing
them downward according to the change in CPI between
the Base Year and the Current Year, as modified by any
increases based on the difference between ownermanaged and contracted-managed expenses in the park between the Base Year and Current Year, unless the
petitioner establishes by a preponderance of evidence that management expenses increased from the Base Year to
the Current Year at a higher rate despite prudent
management;
(iii) Allowable legal expenses may be included in accordance with Paragraph (k), below; plus,
b. Normal repair and maintenance expense pursuant to CMC Section 9.05.100(B)(7)(c).
c. Utility expenses: If the utility service is regulated by the PUC, only that portion of the utility expenses solely attributable to the operation, maintenance, and repairs to the Park’s common areas may be included in Operating Expenses, and only if all of the following requirements are met:
(i) The common area utility expenses are not subject to PUC regulation (including but not limited to any submeter
discount);
(ii) The common area utility expenses are separated from the utility expenses attributable to the provision of utility services to the individual mobile homes and for individual homeowner usage;
(iii) The petitioner provides documentation demonstrating, based on a preponderance of evidence, that the utility
expenses relate solely to maintenance, repair and/or
provision of common area utility service; and
(iv) In determining whether a preponderance of evidence exists under Subparagraph (3), the mere fact that there is an excess or differential between the amount charged to a petitioner by the utility for total usage for the park, and the amount charged to the park owner by the utility for
individual mobile homes and/or individual park resident usage, shall not be sufficient to meet the park owner’s burden of proof that the excess or differential represents
27 common area utility expense; plus
d. Owner-performed labor pursuant to CMC Section
9.05.100(B)(7)(d): Eligible owner-performed labor shall be included only upon a satisfactory showing of the date, time and nature of the work performed, and hourly rate allowed pursuant to CMC Section 9.05.100(B)(7)(d), through credible and reliable documentation that demonstrates the hours and nature of services provided. Labor which has not increased by more than the CPI since the Base Year, or which is the same percentage of gross income in the Base Year and Current Year, is presumed to be reasonable, unless rebutted by clear and convincing evidence as provided in Subparagraph(b)(1) of this Rule 7.3(B)(9); plus, e. Amortized capital improvements and major repairs with a total cost of more than $100.00 per year per benefitted space pursuant to CMC Section 9.05.100(B)(7)(g). When the useful life of the improvement or major repair is at least five years, an interest cost of the lesser of current prime rate plus 1% per annum or the actual interest rate incurred by the park owner for the improvement or major repair may be added. In those cases where the owner finances the capital improvement or a part thereof with his/her own funds, interest at the current prime rate plus 1% per annum, computed over a reasonable amount of time shall be included for the portion self-financed, as a part of the capital improvement cost. In determining the reasonable amount of time over which interest shall be allowed the RA shall be guided by the current practices of state and federally charted banks and/or savings and loan associations as to the length of time for repayment of improvement loans, provided, however, that the time shall not exceed the amortization period determined by the RA and used in calculating the allowable capital improvement rent increase. The factors set forth in Chapter 10, Rule 10.2 and the amortization periods set forth in Appendix “A” of these Rules shall be used in determining whether an expense qualifies as a capital improvement under this provision and the proposed amortization period and interest rate; plus
f. Insurance, based on the amount of the annual insurance premium; plus
g. Operating supplies, such as janitorial supplies, gardening supplies, stationery, and similar items; plus
h. Allowable legal expenses: Eligibility of legal expenses shall be determined in accordance with CMC Section 9.05.100(B)(9) to the extent not otherwise precluded by this Chapter.
D. Reasonableness of Operating Expenses.
28 1. All operating expenses shall be reasonable, and the park owner shall have the burden of proving the reasonableness of all of the claimed operating expenses. Whenever a particular expense exceeds the normal industry or other comparable standard, the park owner shall bear the burden of providing the reasonableness of the expense. To the extent that the Hearing Officer finds any such expense to be unreasonable, the Hearing Officer shall adjust the expense to reflect the normal industry or other comparable standard..
2. When an expense item for a particular year:
a. is not representative, or
b. in the case of base year expenses, is not a reasonable representation of average expenditures for that item in the years preceding and following the base year, or
c. in the current year expenses, is not a reasonable projection of future expenditures for that item,
said expense shall be averaged with expense levels for other years or amortized or adjusted by the CPI or some other reasonable methodology in order to establish an expense amount for that item which most reasonably serves the objectives of obtaining a reasonable comparison between the recurring level of the expense(s) in the base year and current year.
E. Schedule of Increases in Operating Expenses. Where scheduling of rental increases, or other calculations, require projections of income and expenses because actual data is not available, it shall be presumed that operating expenses, exclusive of property taxes, and management expenses, increase at the rate of the increase in the CPI for the applicable year; that property taxes increase at two percent (2%) per year; and that management expenses. increase or decrease in the same percentage as the change in CPI between the Base Year and Current Year. These presumptions may be rebutted by clear and convincing evidence.
F. Presumption of Base Year Net Operating Income. For the purposes of evaluating an MNOI Petition, it shall be presumed in the absence of evidence to the contrary presented, pursuant to Rule 7.5 of this chapter, that the NOI earned by the mobile home park in Base Fiscal Year July 1, 1992 ending June 30, 1992 provided a just and reasonable return to the park.
G. Method of Calculation of MNOI Increase. The MNOI increase for the park under Section 9.05.100(D) of the Ordinance and this Chapter shall be calculated as follows:
1. Determination of Base Year NOI. .
29 a. The Gross Income for the Base Year (or “Base Year GI”) for all spaces in the park, and the Operating Expenses for the Base Year (or “Base Year OE”) for all spaces in the park, shall each be calculated. The Base Year OE shall be subtracted from the Base Year GI, and the difference shall be known as the Base Year Net Operating Income (or “Base Year NOI”) for the park. As used herein, “all spaces in the park” means all leased, vacant and month-to-month spaces in the park.
b. Method of Calculation of Rent Increase upon Changed Vacancy Rate. In the event that there has been an increase of more than three percent in the vacancy rate in the park since the Base Year and the park owner fails to demonstrate that the vacancy rate is beyond his/her control, the City finds that it would be contrary to the purposes of rent stabilization to authorize additional rent increases for occupied spaces in order to offset reductions in income due to those increased vacancies. In effect, allowing additional rent increases for occupied spaces because there are more vacant spaces in a park would allow park owners to obtain higher rents from existing tenants, than it is possible to obtain from the prospective residents, whose homes are still “mobile” and whose options have not been restricted by the process of moving into the park. Therefore, in the event that there has been an increase of more than three percent in the vacancy rate in the park since the base year, calculations of base year and current year operating expenses may be adjusted by the BoardHearing Officer so that a reasonable comparison of the expenses and charges associated with rented spaces is obtained for the purpose of comparing Base Year and Current Year operating expenses and to adjust for variations in operating expenses due to the increased vacancy rate.
2. Determination of Current Year NOI. The Gross Income for the Current Year (or “Current Year GI”) for all spaces in the park shall be calculated., and the Operating Expenses for the Current Year (or “Current Year OE”) for all spaces in the park, shall be calculated. The Current Year OE shall then be subtracted from the Current Year GI and the difference shall be known as the Current Year Net Operating Income (or “Current Year NOI”) for the park. As used herein, “all spaces in the park” means all leased, vacant and month-to-month spaces in the park.
3. Determination of Current Year NOI Entitlement. The Base Year CPI shall be subtracted from the Current Year CPI, and the difference shall be multiplied by 100. The product shall then be divided by the Base Year CPI to identify the percentage change in the CPI. The percentage change in the CPI shall then be multiplied by 80%. The product of this calculation shall then be multiplied by the Base Year NOI as determined in Rule 7.3(G)(2). The product of this calculation shall then be added to the Base Year NOI. The resulting sum shall be known as the “Park
30 Current Year NOI Entitlement.”
4. Determination of Park’s MNOI Increase. The Current Year NOI shall then be subtracted from the Park Current Year NOI Entitlement. The positive difference is the amount of the maximum allowed MNOI increase for the park (or “the Park MNOI increase”). If the difference is zero or a negative number, then the park owner is not entitled to an MNOI increase.
5. Method of Allocation of the Park MNOI Increase for Month-toMonth Spaces. A prorated amount of the Park MNOI Increase shall be allocated and charged to the individual month-to-month spaces, in accordance with the following provisions.
a. Except as otherwise provided in Subparagraph (b) of this Rule
7.3(G)(5), the Park MNOI Increase shall first increase be allocated among all spaces in the park, including month-tomonth, vacant and leased spaces. Provided that, no rent increase shall be added to any space rent for any exempt space or vacant space.
b. To allocate the Park MNOI Increase to regulated spaces, the allocation should be made by multiplying the Park MNOI Increase (calculated pursuant to Subsection (G)(4) of this Rule 7.3), above, by a fraction which is the number of regulated rental months divided by the total annual rental months for the park. (i) Leased spaces shall continue to pay the space rent
required pursuant to their individual leases.
(ii) Vacant spaces shall continue to be assigned the space rent that was in effect immediately preceding the vacancy, except as otherwise provided by Section 9.05.070 of the Ordinance.
H. Notice of MNOI Increase. An MNOI Increase is a rent increase which must be noticed in accordance with State Law.
I. Park Owner Did Not Own Subject Property in 1991/1992 Base Year. If the park owner did not own the park in the 1991/1992 Base Year, the following rules shall apply in determining Base Year Operating Expenses.
1. The Base Year Operating Expenses shall be determined based upon the previous owner's actual expenses for that year as determined by the Board Hearing Officer pursuant to Section (B) of this Rule 7.3. Where actual figures are unavailable, the Board Hearing Officer may consider actual Operating Expenses for the petitioner’s first calendar year of ownership, discounted to the 1991/1992 Base Year by the schedule in Rule 7.3(E).
31 2. Subsection (1) does not apply to a park owner who refuses to provide documents and information on the ground that it is unnecessary, unreasonably burdensome or irrelevant.
7.4 MNOI Increase Pursuant to Readjusted to July 1, 1991 to June 30, 1992 NOI A. Rebutting the Presumption of a Fair Return in the July 1, 1991 to June 30, 1992 Base Year. Section 9.05.100(A) of the Ordinance provides that, in the absence of evidence to the contrary, it shall be presumed that the NOI for fiscal year July 1, 1991 through June 30, 1992 (or “1992 NOI”) provided a fair return.
Section 9.05.100(E) of the Ordinance provides that the owner may rebut this presumption by presenting evidence that the park's 1992 NOI was insufficient to provide a fair return based on one or more of the following circumstances:
1. Operating expenses were unusually high despite prudent business practices. Evidence that unusual repairs were required, an uninsured loss occurred or that the park was unable to perform necessary repairs or maintenance in prior years resulting in unusually high expenses in July 1, 1991 to June 30, 1992 could be used to establish this circumstance. In this circumstance, the calculation of the park's 1992 NOI may be adjusted by substituting the average of the park's operating expenses over a reasonable time or the average operating expenses in comparable parks in July 1, 1991 to June 30, 1992 for the park's actual July 1, 1991 to June 30, 1992 operating expenses..
2. Gross income was disproportionately low from July 1, 1991 to June 30, 1992 despite prudent business practices. Evidence of a large number of vacancies arising from evictions for cause under State law or the voluntary removal of homes from a park could be used to establish this circumstance. This circumstance might also arise during the initial years of a park's operation before it has been filled. In this circumstance, the calculation of the July 1, 1991 to June 30, 1992 NOI may be adjusted by adding the difference between actual July 1, 1991 to June 30, 1992 gross income and that which would have been earned, but for this circumstance to the park's July 1, 1991 to June 30, 1992 gross income.
3. The rent during July 1, 1991 to June 30, 1992 was lower than rent in comparable parks during July 1, 1991 to June 30, 1992. Evidence that there were no rent increases during July 1, 1991 to June 30, 1992 or rents were not established in arm's-length transactions and rents were below those in comparable parks because lower or fewer increases had been imposed in a park than in comparable parks during July 1, 1991 to June 30, 1992 or prior years could be used to establish this circumstance. In this circumstance, the calculation of the July 1, 1991 to June 30, 1992 NOI may be adjusted by increasing rental income from those spaces which were charged lower rent by the difference between the rents actually charged in the park and the rents charged in comparable parks during July 1, 1991 to June 30, 1992.
32 4. Capital improvements were made occurring July 1, 1991 to June 30, 1992 but were not reflected in rent increases collected in July 1, 1991 to June 30, 1992. Evidence that the improvement is completed and operational and evidence of the cost incurred is required to establish this circumstance. In this circumstance, the calculation of the 1992 NOI may be adjusted by adding to the park's gross income the amount of the additional annual revenue which would have been received if a rent increase equal to the cost of the improvement divided by its useful life and divided by the number of spaces had been charged during each month of July 1, 1991 to June 30, 1992.
5. The 1992 NOI was not sufficient to provide a just and reasonable return.
Evidence of the investment in the park, the return earned on that investment, the purchase price of the park and its net operating income in July 1, 1991 to June 30, 1992, prior and subsequent years, and the same information for comparable parks could be used to establish this circumstance. In this circumstance, the calculation of the 1992 NOI shall be adjusted by adding to the park's July 1, 1991 to June 30, 1992 gross income, the amount of rental income required to provide a just and reasonable return on investment in July 1, 1991 to June 30, 1992.
B. Eligibility. A park owner shall be eligible to apply for a Special Rent Increase under Section 9.05.100(E) of the Ordinance and this Rule only if the subject park has never received a Special Rent Increase under Section 9.05.100(D) or (E) of the Ordinance (or any predecessor ordinance(s).) If the City has previously granted a Special Rent Increase to the Park under Section
9.05.100(D) or (E) of the Ordinance, the subject park shall not be eligible for a MNOI rent increase pursuant to this Rule 7.4.
C. Burden of Proof. In order to qualify for an MNOI Rent Increase based on a readjustment to the 1992 NOI under CMC Section 9.05.100(E) and this Rule, the owner shall have the burden of proving the existence of one of the circumstances enumerated in Section (A), above and of providing reliable, credible evidence of the rents, operating expenses, gross income, NOI, purchase price, and return on investment at the park and comparable parks or of the capital improvement costs which are necessary to make the appropriate adjustment to the 1992 NOI. In reviewing the evidence and comparing rents, gross income, operating expenses, NOI and return on investment at the park with those at comparable parks, the term “comparable park” shall have the meaning set forth in Rule 7.3(B)(3).
7.5 Petition for Special Rent Increase Based on Fair Return Provision In accordance with CMC Section 9.05.100(F) and this Rule 7.5, a park owner may rebut the presumption that the rent increase calculations provided by Rules 7.3 and/or
7.4 are sufficient to provide a just and reasonable return by presenting evidence that the rate of return being earned by the mobile home park is not just and reasonable.
33 A. Burden of Proof. The park owner shall have the burden of proving the park is not earning a just and reasonable return.
B. Relevant Evidence. In determining whether a park owner is entitled to a Special Rent Increase under CMC Section 9.05.100(F) and this Rule 7.5, the Hearing Officer shall consider all relevant evidence, including but not limited to:
1. The purchase price of the park;.
2. The NOI of the park at the time of purchase;
3. Any capital improvements made in the park by the owner;
4. The park’s current income and expenses and income and expenses for the past 5 years;
5. The return earned by the park;
6. The return earned by comparable residential rental enterprises with commensurate risks and benefits;
7. The return earned by comparable mobile home parks measured by the “capitalization rate” (or “cap rate”) of those parks determined by dividing a park’s net operating income by its purchase price; and
8. The mobile home park's pattern of income and expenses over each of the past five years, including any unavoidable increases or decreases in maintenance, repairs and other operating expenses (including but expressly not limited to deferred maintenance or substantial deterioration in the mobile home park other than as the result of normal wear and tear).
C. Hearing Officer Determination. Any written determination by the Hearing Officer that the park owner is entitled to a Special Rent Increase under this Rule 7.5 shall set forth all facts and circumstances supporting the Special Rent Increase granted, and the documentation upon which the Hearing Officer’s decision is based.
7.6 Allowable Rent Increases and Petitions Following Special Rent Increase Following approval of a Special Rent Increase by the Hearing Officer under CMC Section 9.05.100 and this Chapter, a park owner shall not apply for an Annual Increase pursuant to Section 9.05.080 of the Ordinance and Chapter 6 of these Administrative Rules, until the expiration of at least twelve (12) months following the approval of the Special Rent Increase. A park owner may apply for Capital Improvement Rent Increase at any time following approval of the Special Rent Increase.
CHAPTER 8 – SPECIAL RENT INCREASE PUBLIC HEARING PROCESS
34 8.1 General Petition Requirements
The Petition for a Special Rent Increase under Section 9.05.100 of the Ordinance and Chapter 7 of these Rules, shall be submitted along with the filing fee in accordance with CMC Section 9.05.110 and the requirements set forth in this Chapter.
A. Form. The City has prepared forms for use in seeking or opposing a Special Rent Increase, including a Petition form, affidavits, declarations and notices.
Park owners are encouraged to use the City-approved documents. Although use of the City-approved forms is not mandatory, a petitioner shall provide all information and documentation required by the City-approved forms. Failure to provide all information and documentation required by the City and/or filing fee may result in a determination by the RA that the Petition is not complete.
B. Content of Petition.
1. In accordance with CMC Section 9.05.110(D), the Petition shall include all of the following and also comply with all other requirements of this Chapter:
a. The filing fee as established by the City.
b. The space numbers and names, addresses and telephone numbers of all affected residents.
c. The current rent of the affected spaces.
d. For any exempt space, an explanation of the basis of the exemption and all supporting documentation.
e. The proposed rent increase and the proposed new rent for each space.
f. The calculations and detailed explanation of the methodology used in determining the proposed MNOI rent increase, rent increase based on readjusted base year NOI, or fair return rent increase, under CMC Section 9.05.100 and Chapter 7 of these Rules.
g. All proofs of service and posting and affidavit as required by Subsections (D) through (G) of this Rule.
All documents, records and other information supporting the petitioner’s calculations and contentions. shall be attached to and shall become part of the Petition.
C. Format. All pages of the Petition form and supporting documentation must be
35 paginated; and all supporting documentation must be marked to correspond to the related section and page of the Petition form. Seven (7) copies of the Petition and all supporting documentation and records, including but not limited to, proofs of service and posting and affidavits, must be filed with the Rent Administrator, along with an electronic copy of the Petition and supporting documents and records, and two sets of stamped envelopes addressed to the affected residents. All copies shall be identical. Documentation submitted shall be correlated by the petitioner to the order set forth in the Petition instructions, so that the Rent Administrator, the Hearing Officer and the residents may ascertain the portion of the Petition to which any set of documentation pertains.
Failure to do so may result in a determination by the Rent Administrator that the Petition is not complete.
D. Service on Opposing Party. In accordance with CMC Section 9.05.110(F), prior to or concurrently with filing the Petition with the city, the petitioner shall:
1. Serve a copy of the Petition on the designated park resident representative, along with proof of service.
2. Serve notice of filing of the Petition on each affected resident in the park, along with proof of service, in accordance with the City-approved notice form by personally delivering the notice to the residents, or by mailing the notice to each resident by first-class mail, postage prepaid.
The petitioner shall also include a copy of the proofs of service with the petition filed with the City.
E. Maintenance of Copies of Complete Petition at Park. Four complete copies of the Petition, and any additional information or documentation filed by the petitioner during the review and processing of the Petition, shall be maintained at the park until issuance of a final decision by the City on the Petition, in accordance with CMC Section 9.05.110(E).
F. Posting Requirements. Notice of filing of the Petition, and any information or documentation filed by the petitioner during the review and processing of the Petition by the City, shall be posted by the petitioner in the park in accordance with CMC Section 9.05.110(E).
G. Affidavit or Declaration Under Penalty of Perjury. The Petition shall include an affidavit of or declaration in accordance with the City-approved form, signed by the petitioner under penalty of perjury under the laws of the State of California, certifying that:
1. The petitioner complied with each of the service and posting requirements of Sections (A) through (EF) of this Rule; and
2. All representations and information set forth in the Petition are true and correct.
36 8.2 Filing Fee
A. City Council Action. The Petition for Special Rent Increase shall be accompanied by the filing fee established by resolution of the City Council. The filing fee shall be used to offset the costs incurred for staff time, time incurred by experts retained by the City to evaluate the petition, and postage and duplication.
B. Additional Fee. If the City determines that Staff will incur additional time and expert costs to evaluate the petition, the petitioner shall be required to submit any additional deposit(s) deemed necessary to cover the additional costs. The City Council may modify the filing fee by resolution from time to time, and any such modification shall be incorporated herein by this reference on the date of adoption of the City Council Resolution.
C. Failure to Pay Filing Fee. The petitioner must pay the initial filing fee with his/her Petition in order for the Petition to be deemed complete, in addition to any other requirements of this chapter. Any additional fee required by the City must be paid at least sixty days prior to the public hearing before the BoardHearing Officer.
8.3 Requirement for Submittal of Complete Petition.
A park owner who seeks a Special Rent Increase shall submit a complete Petition, in accordance with Chapter 7 and the following requirements.
A. Documentation. As used in this Rule 8.3, “documentation” or “document” includes, but shall not be limited to, invoices, cancelled checks, spreadsheets, profit and loss statements, general ledgers, balance sheets, account books, bank statements, deeds, title reports, appraisals, audits, rent statements, bills, receipts, insurance policies and certificates, journals, logs, contracts, bank statements, notes, memoranda and any other instrument of any kind, in written, recorded or electronic form, that supports or documents any claimed income or expense category.
B. MNOI Rent Increase under Section 9.05.100(D) of the Ordinance. In addition to the requirements set forth in Rules 8.1 and 8.2, a Petition for an MNOI Rent Increase under Section 9.05.100(D) of the Ordinance and Rule 7.3 shall be required to contain all information and documentation establishing the following for all spaces in the Park:
1. The park’s income and operating expenses incurred in the Base Year;
2. Capital improvements made by the park owner in the Base Year; 3 The park’s income and operating expenses incurred in the Current Year;
4. Capital improvements made by the park owner in the Current Year;
37 5. The park’s income and expenses in each of the last five (5) years;
6. If the subject park previously received approval of a Special Rent Increase pursuant to CMC Section 9.05.100 and 9.05.110 of the Ordinance (or any predecessor ordinance), the park’s income and operating expenses since its last Special Rent Increase;
7. All information and documentation required by Rule 8.1;
8. All information and documentation required by Rule 8.3(E); and
9. Such other information and documentation as determined by the Rent Administrator as necessary and relevant for the City and its experts to complete their analysis and for the BoardHearing Officer to properly determine whether the owner is entitled to an MNOI rent increase under CMC Section 9.05.100(D) and Rule 7.3 of Chapter 7.
C. MNOI Rent Increase based on readjusted Base Year NOI under Section
9.05.100(E) of the Ordinance. A Petition for an MNOI Rent Increase under Section 9.05.100(E) of the Ordinance and Rule 7.4, shall be required to contain all information and documentation set forth in Rules 8.1, 8.2 and 8.3(A) and (B), above. The park owner shall also submit all such additional information and documentation for all spaces in the park, as follows:
1. For a petition filed under Rule 7.4(A)(1), the factual basis and supporting evidence for the owner’s contention that the park’s base year operating expenses were unusually high or low despite prudent business practices;
2. For a petition filed under Rule 7.4(A)(2), the factual basis and supporting evidence establishing that the park’s Gross Income was
disproportionately low during July 1, 1991 to June 30, 1992 despite prudent business practices;
3. For a petition filed under Rule 7.4(A)(3), the factual basis and supporting evidence for the owner’s contention that rents during the base year were lower than rents in comparable parks because the rents were not established in an arm’s-length transaction;
4. For a petition filed under Rule 7.4(A)(4), the factual basis and supporting evidence for the owner’s contention that capital improvements that were made in the base year but were not reflected in rent increases collected during the base year;
5. For a petition filed under Rule 7.4(A)(5), the factual basis and supporting evidence for the owner’s contention that the NOI for fiscal year 1991/1992 was not sufficient to provide a just and reasonable return, including but expressly not limited to: the park’s purchase price and NOI at the time of purchase; improvements made after purchase of the park,
38 before and during the base year; the park’s income, expenses and NOI in the Base Year, the park’s income and expenses for the preceding 5 years; the return being earned; the cap rates of comparable mobile home parks; the return being earned by other residential real estate investments with comparable risks and benefits in the Base Year;
6. All information and documentation required by Rule 8.1;
7. All information and documentation required by Rule 8.3(E); and
8. Such other information and documentation determined by the Rent Administrator to be necessary and relevant for the City and its experts to complete their analysis and for the BoardHearing Officer to properly determine whether the owner is entitled to an MNOI Rent Increase under any of the factors listed in CMC Section 9.05.100(E) and Rule 7.4 of Chapter 7.
D. Fair Return Increase under Section 9.05.100(F) of the Ordinance. A Petition for a Fair Return Rent Increase under Section 9.05.100(F) of the Ordinance and Rule 7.5 shall be required to contain all information and documentation set forth in Rules 8.1, 8.2 and 8.3(A) and (B), above. The park owner shall also submit all information and documentation to establish the following:
1. The purchase price paid by the owner for the park;.
2. The park’s NOI or cap rate (as defined in Rule 7.5(B)(7)) at the time of purchase;
3. The park’s income and expenses for the current year for all spaces in the park;
4. The park’s income and expenses in each of the last five (5) years for all spaces in the park;
5. The park’s income and expenses for all spaces in the park at the time of its last Special Rent Increase to provide a fair return granted under Section 9.05.100 of the Ordinance (or any predecessor ordinance(s)), and every year since that time;
6. All capital improvements made by the owner in the base year for the park, and since the date of purchase or the date of the last Special Rent Increase;
7. The park’s current cap rate and the cap rate for comparable mobile home parks;
8. The return earned by comparable residential rental enterprises with commensurate risks and benefits;
39 9. All information and documentation that supports the owner’s contention that the return earned by the mobile home park is not just and reasonable; and
10. All information and documentation required by Rule 8.1; and
11. All information and documentation required by Rule 8.3(E); and
12. Such other information and documentation determined by the Rent Administrator to be necessary and relevant for the City and its experts to complete their analysis and for the BoardHearing Officer to properly determine whether the owner is entitled to a Fair Return Increase under Section 9.05.100(F) of the Ordinance and Rule 7.6.
E. Filing Preconditions. In addition to the requirements set forth in Rule 8.3(B), (C) and (D), all Petitions for Special Rent Increases filed under CMC Section
9.05.100(D), (E) and/or (F) shall comply with the following additional requirements.
1. A Petition for an MNOI Rent Increase under CMC Section 9.05.100(D) may be submitted without a Petition for an MNOI Rent Increase based on a re-adjustment to the Base Year NOI under CMC Section
9.05.100(E) or (F). A Petition for an MNOI Rent Increase based on a readjustment to the Base Year NOI under CMC Section 9.05.100(E) cannot be submitted without a Petition for an MNOI Rent Increase under CMC Section 9.05.100(D). A Petition for a Fair Return Rent Increase under CMC Section 9.05.100(F) cannot be submitted unless accompanied by a Petition for an MNOI Rent Increase under CMC Section 9.05.100(D) and/or (E). A Petition for Special Rent Increase which does not comply with this Section (D)(1) of this Rule shall be deemed incomplete.
2. A Petition for a Special Rent Increase under CMC Section 9.05.100(D), (E) and/or (F) and Rules 7.3, 7.4 and/or 7.5 of these Rules shall also include complete information and supporting documentation establishing all of the following:
a. Annual Increases. To the extent not included in the registration statements and/or rent schedules on file with the City, the petitioner shall provide the following Annual Increase information and supporting documentation with the Petition:
(i) A list of each Annual Increases imposed by the park owner under Section 9.05.080 of the Ordinance for the
Base Year, including the amount of each Annual Increase, the affected space(s), and the implementation date(s), and space rent charged before and after the implementation of the Annual Increase;
40 (ii) A list of each Annual Increases imposed by the owner under Section 9.05.080 of the Ordinance for each of the years since the Base Year and up to and including the
Current Year, the affected space(s), the implementation date(s), and the space rent charged before and after
implementation of the Annual Increase; and
(iii) A list of each Annual Increases for which the owner has issued a notice of rent increase under State law but which has not yet become due and payable by the affected
residents as of the date of filing of the Petition for Special Increase with the City, the affected space(s), the space rent before the proposed rent increase; the proposed
space rent after implementation of the Annual Increase; and the proposed implementation date of each Annual
Increase.
b. Exempt Spaces. To the extent not included in the registration statements and/or rent schedules on file with the City, the petitioner shall provide the following exempt space information and supporting documentation with the Petition:
(i) For all spaces exempt from the Ordinance pursuant to CMC Section 9.05.020(A) during the Base Year: a list of all exempt spaces; the space rent charged for each
exempt space; the utilities, housing services and
amenities included in the space rent for each exempt
space; the utilities, housing services and amenities
charged separately from the space rent for each space;
and the commencement date and expiration date of the
exempt lease or other rental agreement;
(ii) For all spaces that were exempt at any time during the Current Year pursuant to CMC Section 9.05.020(A) but
which are month-to-month spaces as of the date of the
Petition: a list of all exempt spaces, the space rent
charged for each exempt space; the utilities, housing
services and amenities included in the space rent for each exempt space; the utilities, housing services and
amenities charged separately from the space rent for each space; the commencement date and expiration date of the exempt lease or other rental agreement; and the monthly space rent initially imposed as of the lease expiration date; and
(iii) For all spaces exempt pursuant to CMC Section
9.05.020(A) as of the date of filing the complete Petition:
a list of all exempt spaces; the space rent charged for
41 each exempt space; the utilities, housing services and amenities included in the space rent for each exempt
space; the utilities, housing services and amenities
charged separately from the space rent for each space;
the commencement date and expiration date of the
exempt lease or other rental agreement.
c. Vacant Spaces. To the extent not already included in the registration statements and/or rent schedules on file with the City pursuant to Chapter 5 of these Rules, the petitioner shall provide the following information and supporting documentation with the Petition for vacant spaces:
(i) A list of each rent increase (including any vacancy increase) imposed by the park owner for the Base Year,
including the amount of each increase, the affected
space(s), and the implementation date(s), space rent
charged before and after the implementation of the
increase, and utilities, housing services and amenities included in the space rent and charged separately from
the space rent;
(ii) A list of each rent increase (including any vacancy increase) imposed by the owner for each of the years
since the Base Year and up to and including the Current Year, the affected space(s), the implementation date(s), the space rent charged before and after implementation of the increase, and the utilities, housing services and
amenities included in the space rent and charged
separately from the space rent; and
(iii) A list of each rent increase (including any vacancy increase) for which the owner has issued a notice of rent increase under State law but which has not yet become
due and payable by the affected residents as of the date of filing of the Petition for Special Increase with the City, the affected space(s), the space rent before the proposed rent increase, the proposed space rent after
implementation of the increase, the utilities, housing
services and amenities included in the space rent and
charged separately from the space rent, and the proposed implementation date of each increase.
d. Park Ownership and Management Changes If ownership or management of the park changed during the Current Year, or since submittal of the most recent Annual Registration
Statement, the petitioner shall provide the following information and supporting documentation with the Petition:
42 (i) The date of change of ownership of the park; and the full name and all other information for the new park owner
required by Chapter 5.
(ii) The date of change of management; and the full name and other information required for the park manager
required by Chapter 5. As used herein, “management”
includes both on-site and off-site management.
e. Park-Owned and/or Management-Owned Mobile Homes. To the extent not included in the Initial or any Annual Registration Statements and/or rent schedule filed with the City, the petitioner shall provide the following information and supporting
documentation regarding mobile homes owned, rented, leased or used by management with the Petition:
(i) A list of all mobile homes owned, rented, leased or used by the park owner or management during the Base Year,
during the Current Year, and as of the date of filing of the Petition, including the date each space became owned ,
rented, leased or used by the park owner or management; space rent; the utilities, housing services and amenities included in the space rent; the utilities, housing services and amenities charged separately from the space rent;
and
(ii) Such information and documentation shall be separately provided for each time period.
8.4 Rent Administrator Authority
Upon receipt of the Petition, the Rent Administrator shall review the Petition and determine whether the Petition is complete in accordance with the following provisions.
A. Notification to Park Owner. The Rent Administrator shall determine whether the Petition contains all information and documentation required by CMC Sections 9.05.100 and 9.05.110 and these Rules. Not later than thirty (30) days after the Petition was filed with the City, the Rent Administrator shall send written notice to the petitioner, informing him/her whether the Petition is complete.
B. Procedures Upon Determination that Petition is Incomplete.
1. If the Rent Administrator determines that the Petition is incomplete, the notice sent by the Rent Administrator shall include a list of the information and documentation required under CMC Sections 9.05.100 and 9.05.110 and these Rules in order for the Petition to be deemed complete.
43 2. The petitioner shall have thirty (30) days to submit the additional information or documentation set forth in the notice. The Rent Administrator may extend this 30-day period for up to an additional 30 days upon a request by the petitioner prior to the expiration of the initial 30-day period that such additional time is needed for the petitioner to obtain and submit the additional documentation.
3. Upon expiration of the thirty-day period (or the additional period of time as extended by the Rent Administrator), the petition shall thereafter be set for hearing before the Hearing OficerOfficer. If the petitioner failed to submit the additional information or documentation requested by the Rent Administrator to deem the petition complete, the Rent Administrator shall serve written notice on the park residents and designated park resident representative that the Petition has been filed with the City but that it is incomplete, and that the failure of the petitioner to submit a complete petition may be considered by the Hearing Officer in determining whether the petitioner met its burden of proof for a Special Rent Increase. The notice shall be issued in accordance with Section 9.05.110 of the Ordinance and these Rules. The Rent Administrator shall thereafter schedule the public hearing on the merits of the Petition before the Hearing Officer in accordance with CMC Section 9.05.100 and this Rule 8.4.
4. The scheduling of an incomplete petition for consideration by the Hearing Officer shall not constitute any finding by the Rent Administrator or the Hearing Officer that the petition is complete. In reviewing an incomplete Petition, the Hearing Officer may consider the failure of the petitioner to submit a complete petition in evaluating whether the petitioner met its burden of proof that petitioner is entitled to a Special Rent Increase.
C. Procedures Upon Determination that Petition is Complete.
1. Upon the City’s determination that a Petition is complete in accordance with these Rules, the Rent Administrator shall serve written notice on the park residents and designated park resident representative that the Petition has been filed with the City, in accordance with CMC Section
9.05.110 and these Rules. The Rent Administrator shall thereafter schedule the public hearing on the merits of the Petition before the Hearing Officer.
2. Any determination by the Rent Administrator that a Petition is complete pursuant to this Rule 8.4 shall not constitute any finding by the Rent Administrator that the petitioner has met his/her/its burden of proof that the petitioner is entitled to a Special Rent Increase.
3. Any determination by the Rent Administrator that a Petition is complete pursuant to this Rule 8.4 shall not preclude the Hearing Officer from
44 requesting or directing that the petitioner provide any additional information or documentation at or during the public hearing on the Petition itself, in order for the Hearing Officer to reach a decision on the merits of the Petition for a Special Rent Increase.
8.5 Protest in Response or Opposition to Petition for Special Rent Increase.
Any person wishing to submit any written opposition or response to a Petition for a Special Rent Increase shall submit a written protest that complies with all the following requirements.
A. Form. The City has prepared forms for use in opposing or responding to a petition for Special Rent Increase, including a Protest form, affidavits, declarations and notices. Persons responding to or opposing a petition are encouraged to use the City-approved documents. Although use of the Cityapproved forms is not mandatory, any person filing a Protest with the City shall provide all information and documentation required by the City-approved forms, relevant to the basis for the Protest to the Petition, as required by the Protest form and as further provided in these Rules.
B. Format. Any person submitting a Protest shall submit at least seven (7) copies of the written opposition or response to the Rent Administrator, including all affidavits, declarations, notices and supporting documentation, along with an electronic copy, not later than the twentieth (20th)thirtieth (30th) day following the date of the notice served upon the park residents that the petition was filed and has been declared complete by the City. All pages of the Protest form and supporting documentation must be paginated; and all supporting documentation must be marked to correspond to the related section and page of the Protest form. Documentation submitted shall be correlated to the order set forth in the Protest form instructions, so that the Rent Administrator, the Hearing Officer and the residents may ascertain the portion of the Protest to which any set of documentation pertains.
C. Service on Park Owner. Upon receipt of Protest by the City, the Rent Administrator shall serve a copy of the Protest upon the park owner.
D. Affidavit or Declaration Under Penalty of Perjury. The Protest shall also include an affidavit of or declaration in accordance with the City-approved form, signed by the person submitting the Protest, under penalty of perjury under the laws of the State of California, certifying that:
1. The person filing the protest served a copy of the Protest on the petitioner and the petitioner’s representative as required by this Rule; and.
2. All representations and information set forth in, and documentation submitted with, the Protest are true and correct.
8.6 Public Hearings before the Mobile Home Park Rent Stabilization Hearing Officer Formatted: Not Highlight
45 The following procedural rules shall apply to all public hearings before the Hearing Officer on Ppetitions for Sspecial Rrent Iincreases, Capital Improvement Rent Increases, and Temporary Rent Increases, except as otherwise expressly provided in CMC Chapter 9.05 or these Rules. All other requirements of Chapter 4 shall also apply to such public hearings, where not inconsistent with the provisions of this Rule
8.6. A. Duties of Presiding Officer. During a public hearing, the Hearing Officer shall serve as the presiding officer and have the authority to:
1. Administer oaths and affirmations;
2. State each question coming before the BoardHearing Officer, announce all decisions of the BoardHearing Officer on all subjects, and control the course of the hearing;
3. Rule on procedural requests; and
4. Take such other actions as are authorized by the Ordinance, these Administrative Rules, and any other duly adopted ordinances, resolutions, rules and regulations of the City Council and/or the Board Hearing Officer pursuant to the Ordinance.
5. The functions of the Hearing Officer shall be performed in an impartial manner.
B. Legal Counsel Representation and Participation.
1. All parties may be, but are not required to be, represented by legal counsel during Special Rent Increase hearings and appeals..
2. City staff may be assisted and advised by legal counsel in connection with review and evaluation of the petition and may be assisted by legal counsel in presentation of City Staff’s recommendations to the Hearing Officer.
3. The Hearing Officer shall rule on offers of proof and receive relevant evidence and make any necessary evidentiary rulings.
C. Rules of Evidence.
1. Format of Documentation. The documents and records submitted in support of the petition must be legible, reproducible, organized and presented in a manner appropriate and acceptable by reasonable accounting standards and appraisal standards, where applicable. The calculation of the proposed rent increase and the supporting material must be certified by a certified public accountant as accurate and computed in the same manner as books and records kept for income
46 tax purposes. Upon request of the Hearing Officer, the petitioner shall be required to show to the Hearing Officer the original document from which any photocopy was made and all documents, papers, or written memoranda which support or are evidence of claimed expenses of any nature. Failure to comply with these provisions shall be good and sufficient cause to deny the petition..
2. Rights of Petitioner and Other Interested Persons. Representatives of the City, representatives of the petitioner, representatives of the residents of the petitioning mobile home park, and any other interested person, party or entity, shall have these rights during any public hearing to consider a Petition for Special Rent Increase:
a. To call and examine witnesses.
b. To introduce exhibits.
c. To discuss evidence directly with the Hearing Officer without an attorney
d. To cross-examine opposing witnesses on any matter relevant to the issues contained in the petition even though the matter was not covered on direct examination.
e. To impeach any witness regardless of which party first called the witness to testify.
f. To rebut the evidence against him/her.
3. Oath. All testimony offered by any person at the public hearing shall be under oath, in accordance with Section 4.12.
4. Hearsay and Privileges. The hearing need not be conducted according to technical rules relating to evidence and witnesses. Any relevant and credible evidence, as defined in these Administrative Rules, shall be admitted by the Hearing Officer if it is the sort of evidence on which responsible persons are accustomed to rely in the conduct of serious affairs, regardless of the existence of any common law or statutory rule which might make improper the admission of such evidence of objection in civil actions. Hearsay evidence may be used for the purpose of supplementing or explaining other evidence but shall not be sufficient inand-of-itself to support a finding unless it would be admissible over objections in civil actions. The rules of privilege shall be effective to the extent that they are otherwise required by statute to be recognized at the hearing, and irrelevant and unduly repetitious evidence shall be excluded. The evidence received shall be relevant to the specific rental increase, which is the subject of the petition, as provided in Subsections 5 through 11, below. Formatted: Font color: Auto
47 5. Relevancy Requirement.
a. Notwithstanding the provisions of Subsection 4, above, all evidence in the form of testimony and written documents pertaining to any petition being considered at the public hearing must be relevant to determine whether a park owner is entitled to an increase in rents pursuant to the Capital Improvement Rent Increase, Special Rent Increase, and/or Temporary Rent
Increase provisions of the Ordinance and these Administrative Rules.
b. All evidence, whether it be in the form of oral testimony or written documents, which is not relevant to enable the Hearing Officer to determine whether a park owner is entitled to the increase being sought in the petition, under the operation of the Ordinance and these Administrative Rules, shall be excluded by the Hearing Officer from his/her consideration in reaching a decision on the rent increase petition.
c. Except as provided elsewhere in these Administrative Rules, or as provided in the Ordinance, the Hearing Officer shall hear all offered testimony and receive all offered documentary evidence relevant to determine whether the particular rent increase petition shall be granted under the Ordinance and these Administrative Rules.
6. Evidence Outside the Hearing. The provisions of Rule 4.105 all apply to all hearings on Petitions for Special Rent Increases, Capital Improvement Rent Increases and Temporary Rent Increases.
7. Submission of Evidence Not Previously Reviewed by Staff. All petitioners for Special Rent Increases, Capital Improvement Rent Increases, and Temporary Rent Increases, and all persons filing a protest to any such rent increase petition for a rent iIncrease, shall comply with the time deadlines set forth in CMC Section 9.05.110, and in Rule 4.8 4.6 and this Chapter 8 (for Special Rent Increases), Chapter 10 (for Capital Improvement Rent Increases) and Chapter 11 (for Temporary Rent Increases) concerning the submission of any documents and other written evidence in support of or in opposition to any petition.
a. The Hearing Officer shall not accept as evidence written or documentary materials that were not submitted within the timelines specified in the Ordinance and these Rules unless good cause is shown why the materials could not have been submitted earlier.
b. If the Hearing Officer determines that good cause has been shown the materials shall be accepted into evidence during the Formatted: Not Highlight
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48 public hearing, subject to further examination of witnesses by the parties to the hearing. Any such materials that are accepted shall be provided to all parties and a recess shall be called to allow the opposing party or parties and the Hearing Officer time to review the new materials. If the new materials that are accepted are extensive or if the Hearing Officer determines the opposing party would be prejudiced unless allowed time to analyze the new materials and prepare a response, the hearing shall be
continued.
c. If good cause is not shown, the materials will become part of the official record but will not be considered by the Hearing Officer during any public hearing or during any appeal to the City Council d. Nothing in this Subsection shall preclude oral testimony by any person at the public hearing on any Petition for a Capital Improvement Rent Increase, Special Rent Increase and/or Temporary Rent Increase.
8. Requests for Production of Evidence. The Hearing Officer or Staff may request the attendance of witnesses and/or the production of books or other documents by proponents, opponents or other interested parties during the course of the hearing or any other matter pending before the Hearing Officer(including at any point in time after a Petition has been filed) if: (a) the evidence or testimony sought would be helpful or necessary to the Hearing Officer’s determination as to whether the petitioner is entitled to the relief requested; or (b) the evidence or testimony would be helpful or necessary to the Hearing Officer’s exercise of its powers or duties..
9. Unavailability of Evidence. If any evidence or testimony requested by the Hearing Officer or staff is not available at the time of the hearing or other proceeding before the Hearing Officer, the hearing or other proceeding may be continued by the Hearing Officer pursuant to Section (D) of this Rule to allow time for the production of evidence or witnesses sought.
10. Rights of Hearing Officer. During the public hearing, the Hearing Officer, staff’s legal counsel, representatives of the petitioner, and representatives of the park residents shall have the right to question any witness and examine any document proposed to be admitted into, or admitted into, evidence by the Hearing Officer at the public hearing.
D. Continuances. Any hearing being held or noticed or ordered to be held by the Hearing Officer may, be continued to another date and time upon the consent of the petitioner and the opponents, or upon a finding of good cause by the Hearing officer. A copy of the order or notice of continuance shall be conspicuously posted on or near the door of the place where the meeting was
49 held within 24 hours after the time of the continuance; provided that, if the hearing is continued to a time less than twenty-four (24) hours after the time specified in the order or notice of hearing, a copy of the order or notice of continuance shall be posted outside the meeting room immediately following the meeting at which the order of continuance was made.
E. Quantum of Proof and Evidentiary Standard. The petitioner shall have the burden of proving entitlement to the rent increase sought. The decision of the Hearing Officer shall be supported by substantial evidence in light of the entire record of the proceedings. Evidence is substantial when it is relevant, credible and reliable and provides enough information, together with the reasonable inferences from that information, to support a conclusion even though other conclusions might also be reached. No decision may be supported solely by heresy evidence.
F. Decision. The Hearing Officer shall consider all evidence properly presented in accordance with the Ordinance, these Administrative Rules, and any supplemental rules adopted by the City Council and shall articulate, during the Hearing Officer’s deliberation at the public hearing, his/her findings of fact, reasoning and conclusions for their decision on all issues. Following the conclusion of the public hearing, the Hearing Officer shall issue a written decision or determination concerning the petition, which shall include findings of fact and conclusions based upon those findings of fact. The decision shall include the determination of the maximum allowable rent for each affected mobile home space, if any, and such other terms and conditions deemed necessary by the Hearing Officer to implement its decision. No decision shall be deemed final by the Hearing Officer until issuance and service of its written decision or determination by the City in accordance with Subsection (G) of this Rule.
G. Service of Hearing Officer’s Decision. Upon issuance of the Hearing Officer’s written decision pursuant to Subsection (F) of this Rule, the Rent Administrator shall serve, by first-class mail, postage prepaid, a copy of the Hearing Officer’s decision, along with an affidavit of mailing, on: the petitioner, the petitioner’s designated representative, the designated park resident representative, and all affected residents, along with an affidavit of mailing.
Service shall be completed upon deposit of the written decision in the U.S.
Mail.
CHAPTER 9 – APPEALS TO THE CITY COUNCIL
9.1 Appeals
Either party may appeal any final decision of the Hearing Officer granting or denying a Capital Improvement Rent Increase, Special Rent Increase, and/or Temporary Rent Increase, to the City Council pursuant to CMC Section 9.05.120 and this chapter.
9.2 General Requirements
50 A. Deadline to Appeal. The deadline to file an appeal is not later than the fifteenth (15th) day after the resolution of the Hearing Officer’s decision has been deposited in the mail by the Rent Administrator, in accordance with Rule
8.76(G). The written appeal, and appeal fee, shall be filed with the Rent Administrator.
B. Form of Appeal. The City has prepared forms for use in filing an appeal, including an appeal form, affidavits, declarations and notices. Appellants are encouraged to use the City-approved forms. Although use of the Cityapproved forms is not mandatory, any person filing an appeal shall provide all information and documentation required by the City-approved forms.
C. Number and Format. The appellant shall submit at least eight (8) typed or printed copies of the Appeal to the City, including all supporting documentation, and proofs of service, posting and affidavit, along with the appeal filing fee and an electronic copy of the appeal (including all supporting documentation, proofs of service, postings and affidavits). All pages of the appeal form and supporting documentation must be paginated; and all supporting documentation must be marked to indicate what section and page of the appeal form to which they pertain.
D. Service on Opposing Party. Prior to or concurrently with filing the appeal with the City, the appellant shall serve a complete copy of the appeal on the designated representative of each opposing party and shall concurrently serve a notice of filing of the appeal on each opposing party.
E. Maintenance of Appeal At Park by Park Owner. Prior to or concurrently with the filing of the appeal by the park owner with the City, the park owner shall place a complete copy of the appeal in the park clubhouse and park office, for inspection and review by the opposing party(is) and designated representative(s) during business hours. A copy of the appeal shall be maintained at each location until the City Council issues a final decision on the appeal. If the appellant is a park resident or park resident representative, the park owner shall designate at least one location where a copy of the appeal may be maintained for inspection by the park owner and park residents until the City Council issues its final decision on the appeal.
F. Posting Requirements. The notices posted by the appellant pursuant to CMC Section 9.05.120(C) shall inform the opposing party(is) that an appeal has been filed with the City;. The notice shall comply with the City-approved form.
1. If the appellant is the park owner, the notice shall further informing the opposing party(ies) that a complete copy of the appeal will be maintained in the clubhouse and park office (or other location if the appeal is filed by a park resident) and shall be accessible to the opposing party(is) and designated representatives during business hours of the park, for review and inspection.
2. If the appellant is a park resident (or park resident representative), the
51 notice shall further inform the opposing party(ies) and other residents of the name, address and location where a copy of the appeal may be inspected at the park, and that a copy of the appeal may also be reviewed at City Hall. Management shall permit the posting of notice by park residents (or park resident representatives) pursuant to this section in the park office and clubhouse in areas normally made available for posting of resident notices, until issuance of a final decision by the city on the appeal.
G. Affidavit or Declaration under Penalty of Perjury. The appeal shall include an affidavit of or declaration, signed by the appellant under penalty of perjury under the laws of the State of California, in accordance with the City-approved form, certifying that:
1. The appellant complied with all notice and posting requirements of Sections (D) through (F) of this Rule 9.2.
2. All representations and information set forth in the appeal are true and correct.
H. Proof of Service. The City will provide a proof of service form for use by appellants in pursuing an appeal, or opposition to any appeal. No appeal shall be deemed filed until the appeal, the proof of service of the appeal, notice and supporting documentation, and appeal fee, have been deposited with the Rent Administrator.
9.3 Exclusion of New Evidence at Appeal Hearing
No appellant, or any person opposing or responding to any appeal, shall submit any verbal or documentary evidence of any kind whatsoever that is not part of the record of proceedings that was considered by the Hearing Officer. As used herein, the term “record of proceedings” means the written staff reports, exhibits, reports, protests and oral testimony which were admitted into evidence and considered by the Hearing Officer during the public hearing on the petition, minutes, and the verbatim transcripts of the proceedings before the Hearing Officer, and the Hearing Officer’s written decision containing his/her findings of fact and legal conclusions.
9.4 Appeal Fee
The fee for the appeal shall be determined as follows:
A. The appeal fee to the City Council shall be in accordance with the fee established from time to time by resolution of the City Council and shall include the actual costs of the staff and expert time, plus the actual costs of preparation of the transcripts of the Hearing Officer’s proceedings from which the appeal is made.
B. Within five (5) days of receipt of the appeal from the appellant, the Rent
52 Administrator shall estimate the cost of preparation of the transcripts from the public hearing and shall notify the appellant that a deposit in the amount of the estimated transcript costs shall be required in order to deem the appeal complete.
C. The appellant shall be required to deposit the appeal fee and the estimated cost of the public hearing transcripts to the Rent Administrator within five (5) days of notification of the costs by the Rent Administrator. Failure to timely deposit the costs of the appeal with the Rent Administrator shall result in dismissal of the appeal. If there is more than one appellant, each party shall pay the full appeal fee, but the costs of the public hearing transcript shall be split equally between the parties and paid by the parties in order for the appeal to be scheduled for hearing.
9.5 City Council Authority
In reviewing an appeal from the Hearing Officer’s decision on a Petition for Special Rent Increase, Capital Improvement Rent Increase and/or Temporary Rent Increase under Section 9.05.110 of the Ordinance, or from a decision of the Hearing Officer on an appeal of a RA decision on a Petition for Capital Improvement Rent Increase, and the provisions of this Chapter 9, the City Council shall:
A. Limit the City Council’s review to the record of the public hearing proceedings, including the Hearing Officer’s Decision (including his/her findings of fact and legal conclusions), , the verbatim transcripts of proceedings before the Hearing Officer, and the staff reports, exhibits, reports, and other materials which were admitted into evidence by the Hearing Officer during the hearing. No new verbal or documentary evidence of any kind that was not included in the record of proceedings may be admitted or considered by the City Council during the appeal. The City Council may (but is not required to) provide guidelines for submission of written briefs, and shall permit limited oral argument on certain issues or all issues decided by the Hearing Officer for consideration by the City Council;
B. Determine whether, in light of the record, “substantial evidence” exists in the Record to support the Hearing Officer’s decision;
C. Determine whether the findings set forth in the Resolution, which is the subject of the appeal, are supported by the evidence;
D. Determine, based upon the City Council’s independent judgment, whether the Hearing Officer’s actions and decision were undertaken in accordance with CMC Chapter 9.05, and these Rules, and whether the Hearing Officer’s interpretation of any pertinent section of the Ordinance or Rules was reasonable and consistent with the purposes and intent of the Ordinance; E. Uphold the decision of the Hearing Officer if the City Council determines that all of the findings required by Sections (B), (C) and (D) this Rule 9.5 may be made. If the City Council is unable to make all of the findings required by
53 Sections (B), (C) and (D) of this Rule 9.5, the City Council may either decide the matter differently or refer it back to the Hearing Officer with directions for further consideration by the Hearing Officer;
F. Make any further findings and determinations, which the City Council determines to be reasonable and necessary in deciding the appeal.
At all times, the City Council shall be guided by, and subject to, the provisions of CMC Chapter 9.05 in considering and determining any appeal.
9.6 City Council Decision
Within forty-five (45) days of commencement of the appeal hearing, the City Council shall memorialize its decision in a written resolution, and submit its decision to the City Clerk, who shall thereafter serve a copy of the decision in accordance with CMC Section 9.05.120(H). Service shall be completed upon deposit of the City Council’s written decision in the U.S. Mail.
9.7 Statute of Limitations
As provided in CMC Section 9.05.170, any legal challenge to a final determination issued by the City Council pursuant to CMC Chapter 9.05 and Rule 9.86, granting or denying an appeal regarding the Hearing Officer’s decision on a Petition for Capital Improvement Rent Increase, Special Rent Increase, and/or Temporary Rent Increase, must be filed within ninety (90) days of the service of the City Council’s decision under CMC Section 9.05.120(H), or such other time deadline established by California Code of Civil Procedure Section 1094.6 as it presently exists or may be amended from time to time.
CHAPTER 10 – PETITION FOR RENT INCREASE BASED ON CAPITAL
IMPROVEMENTS
10.1 Purpose
The purpose of this Chapter is to provide procedures for submittal of petitions for approval of a Capital Improvement Rent Increase pursuant to Section 9.05.090 of the Ordinance.
10.2 Scope of Capital Improvements; Amortization
A. Definition. “Capital improvements” means the installation of new improvements and facilities and/or the replacement or reconstruction of existing improvements and facilities which:
1. Consist of more than ordinary maintenance or repairs, .
2. Have a useful life of at least five (5) years or are necessary for the health and safety of the park, its residents or its neighbors, and
54 3. either:
a. Have a total cost of less than $100.00 per year per benefitted unit, or
b. Have a total cost of more than $100.00 per year per benefitted space, provided such costs are amortized on a straight-line basis over the life of the improvement.
B. Interest. When the useful life of the improvement is at least five years, an interest cost of the lesser of (i) the current prime rate plus 1% per annum, or (ii) the actual interest cost incurred by the park owner, may be added.
C. Non-exclusivity. Nothing in this chapter shall prohibit a park owner from performing a capital improvement if the park owner chooses not to apply for a rent increase under the provisions of the Ordinance and this chapter.
D. Examples
1. Normal routine maintenance and repair of a park is not a capital improvement. For example, patching of potholes and slurrying of asphalt streets and roadways constitute ordinary repairs and are not capital improvements within the meaning of the Ordinance..
2. Major replacement or major reconstruction of an existing facility or improvement constitute capital improvement. For example, the major replacement and/or reconstruction of streets or roadways, sewer lines, water lines and gas lines constitute capital improvements.
3. Addition of new facilities in a park, such as a new office or utility room, cable television service, a sauna, a Jacuzzi or an addition to a recreation room, are also examples of capital improvements.
4. Capital improvements which would otherwise form the basis for a capital improvement rent increase cannot be the basis of such an increase if the park owner charges a fee for the use of the improvement. For example, additional washer and dryers installed for the use of residents cannot be the basis for the capital improvement rent increase if residents must pay to use them.
5. Portable items, such as pool furniture and landscaping or gardening equipment, do not constitute capital improvements.
10.3 Calculation of Allowable Increases
Straight-line depreciation based on the useful/amortizable life of an improvement shall be used to calculate the allowable capital improvement rent increase for the proposed improvement. “Useful/amortizable life” shall mean that period of time during which a particular improvement will (in the opinion of professionals such as architects, Formatted: Font: Arial Bold, Font color: Auto
55 engineers, contractors, accountants) remain functional with only ordinary maintenance and/or repairs. The Rent Administrator shall evaluate the useful/amortizable life of an improvement for which a capital improvement rent increase is sought. To apply straight-line depreciation in calculating the allowable rent increase, the Rent Administrator shall divide the total cost of the improvement by its useful/amortizable life and then divide the result of that calculation by twelve and then by the number of spaces in the park.
For example, the allowable capital improvement rent increase for a street replacement costing $10,000 and having a useful/amortizable life of ten (10) years is calculated as follows:
$10,000.00
------------ = $1,000.00 annual amortization.
10 years
$1,000.00
------------ = $ 83.33 monthly amortization cost.
12 months
$ 83.33
------------ = $ 2.78 monthly rent increase per space for 10 years. 30 spaces
10.4 Amortization
Capital improvements shall be amortized in accordance with Schedule 10.4, attached as Appendix “A” to these Rules, or in accordance with any useful life table utilized by the Internal Revenue Service. However, in general, a capital improvement should not be amortized over a period which would yield a monthly per space increase over ten percent (10%). In such a case, a longer amortization period may be appropriate. The percent increase represented by a particular capital improvement rent increase shall be calculated by dividing the proposed capital improvement rent increase by the amount of the existing base rent. Thus, in the case of the above street replacement example, the percent increase is calculated as follows:
$ 2.78 (proposed capital improvement rent increase)
-------------------------------------------------- = 2.1% increase $ 130.00 (existing base rent)
10.5 Cost of the Capital Improvement
The petitioner shall provide documentary evidence of the actual cost incurred for the capital improvement. The cost thereof shall include the interest expense incurred on money borrowed to pay for the capital improvement. In those cases where the owner finances the capital improvement or a part thereof with his/her own funds, interest at
56 the current prime rate plus 1% per annum computed over a reasonable amount of time shall be included as a part of the capital improvement cost for the portion of such cost financed with the owner’s own funds. In determining the reasonable amount of time over which interest shall be allowed the Rent Administrator shall be guided by the current practices of state and federally charted banks and/or savings and loan associations as to the length of time for repayment of improvement loans, provided, however, that the time shall not exceed the amortization period determined by the Rent Administrator and used in calculating the allowable capital improvement rent increase.
10.6 Improvements Necessary for Health and Safety
Examples of such improvements include, but are not limited to:
A. Replacement of plumbing, electrical, gas and sewer lines necessary to conform to City and State ordinances, statutes, codes and regulations and maintain habitability standards and;
B. Replacement of roads which have become dangerous and are necessary for ingress, egress and safe vehicular and pedestrian movement within a park.
C. Replacement of an amenity such as a swimming pool is not a capital improvement necessary for health and safety, but such an amenity must be shut down if it becomes unsafe, dangerous or fails to conform to health and safety regulations.
10.7 Petition Requirements.
A Petition for Capital Improvement Rent Increase shall be submitted in accordance with the following requirements.
A. Form. The City has prepared forms for use in seeking or opposing a Capital Improvement Rent Increase, including a Petition form, affidavits, declarations and notices. Park owners are encouraged to use the City-approved documents. Although use of the City-approved forms is not mandatory, a petitioner shall provide all information and documentation required by the Cityapproved forms. Failure to provide all information and documentation required by the City forms may result in a determination by the Rent Administrator that the Petition is not complete.
B. Format. All pages of the Petition form and supporting documentation must be paginated; and all supporting documentation must be marked to correspond to the related section and page of the Petition form. All copies shall be identical.
Documentation submitted shall be correlated by the petitioner to the order set forth in the Petition instructions, so that the Rent Administrator, the Hearing Officer and the residents may ascertain the portion of the Petition to which any set of documentation pertains. Failure to do so may result in a determination
57 by the Rent Administrator that the Petition is not complete.
C. Service on Opposing Party. Prior to or concurrently with filing the Petition with the City, the petitioner shall:
1. Serve a copy of the Petition on the designated park resident representative, along with proof of service.
2. Serve notice of filing of the Petition on each affected resident in the park, along with proof of service, in accordance with the City-approved notice form by personally delivering the notice to the residents, or by mailing the notice to each resident by first-class mail, postage prepaid.
D. Maintenance of Copies of Complete Petition at Park. Management shall maintain complete copies of the Petition, and any additional information or documentation submitted to the City during review of the Petition, at the park for inspection and copying by the park residents until issuance of a final decision by the City, in accordance with CMC Section 9.05.110(E) and Rule
8.1(DE).
E. Posting Requirements. Prior to or concurrently with filing the Petition with the City, the petitioner shall also post a notice of the Petition in the park office and clubhouse, in publicly accessible areas, in accordance with CMC Section
9.05.110(E) and Rule 8.1(E).
F. Affidavit or Declaration Under Penalty of Perjury. The Petition shall include an affidavit of or declaration in accordance with the City-approved form, signed by the petitioner under penalty of perjury under the laws of the State of California, certifying that:
1. The petitioner complied with each of the service and posting requirements of Sections (A) through (E) of this Rule; and .
2. All representations and information set forth in the Petition are true and correct.
10.8 Filing Fee.
A. Payment of Filing Fee. The Petition for Capital Improvement Rent Increase shall be accompanied by the filing fee established by resolution of the City Council, by check or money order made payable to the City of Calimesa, or by cash.
B. Amount of Fee. The initial filing fee deposit for a Petition for a Capital Improvement Rent Increase shall be set by the City Council by resolution from time to time. If the City determines that Staff will incur additional time and expert costs to evaluate the petition, the petitioner shall be required to submit any additional deposit(s) deemed necessary to cover the additional costs. The City Council may modify the filing fee by resolution from time to time, and any
58 such modification shall be incorporated herein by this reference on the date of adoption of the City Council Resolution.
C. Failure to Pay Filing Fee. The petitioner must pay the initial filing fee with his/her Petition in order for the Petition to be deemed complete, in addition to any other requirements of this chapter. Any additional fee required by the City must be paid at least sixty days prior to the public hearing before the BoardHearing Officer, or the hearing shall be cancelled.
10.9 Requirement for Complete Petition.
A park owner who seeks a Capital Improvement Rent Increase shall submit a complete Petition in accordance with Chapter 7 and the following requirements.
A. Definition. As used in this Rule 8.3, “documentation” or “document” includes, but shall not be limited to, invoices, cancelled checks, spreadsheets, profit and loss statements, general ledgers, balance sheets, account books, bank statements, deeds, title reports, appraisals, audits, rent statements, bills, receipts, insurance policies and certificates, journals, logs, contracts, bank statements, notes, memoranda and any other instrument of any kind, in written, recorded or electronic form, that supports or documents the claimed capital improvement, including but expressly not limited to, the need and reasons for the work; the factual basis for the Petitioner’s contention that the work constitutes a capital improvement under the Ordinance and this Chapter; the cost of construction and/or installation of the claimed capital improvement, the method and amount of financing incurred by Petitioner in carrying out the claimed capital improvement; and any and all other information and documentation supporting any contentions or allegation s of the Petition.
B. Required Information and Documentation. A Petition for a Capital Improvement Rent Increase under Section 9.05.090 of the Ordinance and this Chapter shall be required to contain all information and documentation establishing the following in order to be deemed complete:
1. The specific need or reasons for the capital improvement, and all supporting documentation; .
2. The specific facts and reasons why the work, construction or improvement satisfies the definition of a capital improvement as set forth in CMC Section 9.05.030 and this Chapter and all supporting documentation;
3. If the petitioner contends that the work, construction or improvement was necessary for health and safety reasons, the specific health and safety reasons for the capital improvement, and all supporting documentation;
4. All documentation demonstrating that the resident meeting and resident vote took place, including but not limited to, the notice of resident
59 meeting, proof of service of the notice of resident meeting on all residents, the ballot submitted to the residents, and the election results;
5. All documentation establishing that all necessary governmental approvals, permits and approvals were obtained to carry out and complete the capital improvement;
6. The cost of the capital improvement, and each element thereof, and all supporting documentation;
7. The type and cost of any interest or other financing of the capital improvement, the method for determining the financing cost, and all supporting documentation (whether financed by a third party of selffinanced by the owner), and all supporting documentation;
8. The proposed amortization period, the basis or method for determining the amortization period, any interest included as a result of the amortization period, and all supporting documentation;
9. An updated Registration Statement reflecting any changes in the park since the filing of the prior Registration Statement, as follows:
a. Changes in Status of Spaces. Any change in status of a space as month-to-month, exempt, or vacant space;
b. Changes in Space Rents. Any change in space rents for any month-to-month space, including increases or decreases in rent; changes in the utilities, housing services and amenities included in the space rent for each space; and changes in the utilities, housing services and amenities charged separately from the space rent for each space;
c. Park-Owned and/or Management-Owned Mobile Homes.
Changes in the status of mobile homes from homes owned by tenants to homes owned, rented, leased or used by
management; and the current space rent; the utilities, housing services and amenities included in the space rent; the utilities, housing services and amenities charged separately from the space rent; and
d. Park Ownership and Management Changes. Any change in park ownership or management.
10. Annual Increases. To the extent not reflected in the Registration Statements and/or rent schedules on file with the City, all of the following information and supporting documentation:.
a. Any Annual Increases imposed by the park owner under Section
9.05.080 of the Ordinance during the 12 months immediately
60 preceding the submittal of the Petition, including the amount of the Annual Increase(s); the space(s) subject to each Annual Increase; and the date(s) that such Annual Increase(s) was imposed by the owner; and
b. Any Annual Increases for which the owner has issued a notice of rent increase under State law but which has not yet become due and payable by the affected residents as of the filing of the Petition, including the amount of the Annual Increase, the spaces subject to the Annual Increase; and the dates that such Annual Increase was imposed by the owner.
11. All information and documentation required by Rule 10.7(E) and 10.7(F); and.
12. Such other information and documentation as determined by the Rent Administrator as necessary and relevant for the City and its experts to complete their analysis and for the BoardHearing Officer to properly determine whether the owner is entitled to a Capital Improvement rent increase under Section 9.05.090 of the Ordinance and this Chapter.
10.10 Rent Administrator Authority.
Upon receipt of the Petition for Capital Improvement Rent Increase, the Rent Administrator shall review the Petition and determine whether the Petition is complete in accordance with the following provisions.
A. Notification to Park Owner. The Rent Administrator shall determine whether the Petition contains all information and documentation required by CMC Sections 9.05.090 and 9.05.110 and these Rules. Not later than thirty (30) days after the Petition was filed with the City, the Rent Administrator shall send written notice to the petitioner, informing him/her whether the Petition is complete.
B. Procedures Upon Determination that Petition is Incomplete.
1. If the Rent Administrator determines that the Petition is incomplete, the notice sent by the Rent Administrator shall include a list of the information and documentation required under CMC Sections 9.05.090 and 9.05.110 and these Rules in order for the Petition to be deemed complete. .
2. The petitioner shall have thirty (30) days to submit the additional information or documentation set forth in the notice. The Rent Administrator may extend this 30-day period for up to an additional 30 days upon a request by the petitioner prior to the expiration of the initial 30-day period that such additional time is needed for the petitioner to obtain and submit the additional documentation.
61 3. Upon expiration of the thirty-day period (or the additional period of time as extended by the Rent Administrator), the petition shall thereafter be set for hearing before the Hearing Officer. If the petitioner failed to submit the additional information or documentation requested by the Rent Administrator to deem the petition complete, the Rent Administrator shall serve written notice on the park residents and designated park resident representative that the Petition has been filed with the City but that it is incomplete, and that the failure of the petitioner to submit a complete petition may be considered by the Hearing Officer in determining whether the petitioner met its burden of proof for a Capital Improvement Rent Increase. The notice shall be issued in accordance with CMC Section 9.05.110 of the Ordinance and these Rules. The Rent Administrator shall thereafter schedule the public hearing on the merits of the Petition before the Hearing Officer in accordance with CMC Sections 9.05.090 and 9.05.100 and this Rule 10.10.
4. The scheduling of an incomplete petition for consideration by the Hearing Officer shall not constitute any finding by the Rent Administrator or the Hearing Officer that the petition is complete. In reviewing an incomplete Petition, the Hearing Officer may consider the failure of the petitioner to submit a complete petition in evaluating whether the petitioner met its burden of proof that petitioner is entitled to a Capital Improvement Rent Increase.
C. Procedures Upon Determination that Petition is Complete.
1. Upon the City’s determination that a Petition is complete in accordance with these Rules, the Rent Administrator shall serve written notice on the park residents and designated park resident representative that the Petition has been filed with the City, in accordance with Section
9.05.090 of the Ordinance and these Rules. The Rent Administrator shall thereafter schedule the public hearing on the merits of the Petition before the Hearing Officer
2. Any determination by the Rent Administrator that a Petition is complete pursuant to this Rule 10.10 shall not constitute any finding by the Rent Administrator that the petitioner has met his/her/its burden of proof that the petitioner is entitled to a Capital Improvement Rent Increase.
3. Any determination by the Rent Administrator that a Petition is complete pursuant to this Rule 10.10 shall not preclude the Hearing Officer from requesting or directing that the petitioner provide any additional information or documentation at or during the public hearing on the Petition itself, in order for the Hearing Officer to reach a decision on the merits of the Petition for a Capital Improvement Rent Increase.
10.11 Protest in Response or Opposition to Petition for Capital Improvement Rent Increase.
Any person wishing to submit any written opposition or response to a Petition for a
62 Capital Improvement Rent Increase shall submit a written protest that complies with all the following requirements.
A. Form. The City has prepared forms for use in opposing or responding to a petition for Capital Improvement Rent Increase, including a Protest form, affidavits, declarations and notices. Persons responding to or opposing a petition are encouraged to use the City-approved documents. Although use of the City-approved forms is not mandatory, any person filing a Protest with the city shall provide all information and documentation required by the Cityapproved forms, relevant to the basis for the Protest to the petition, as required by the Protest form and as further provided in these Rules.
B. Number/Filing. Any person submitting a Protest shall submit at least seven (7) copies of the written opposition or response to the Rent Administrator, along with an electronic copy, not later than the twentieth (20th)thirtieth (30th) day following the date of the notice served upon the park residents that the petition was filed and has been declared complete by the City. All pages of the Protest form and supporting documentation must be paginated; and all supporting documentation must be marked to correspond to the related section and page of the Protest form. Documentation submitted shall be correlated to the order set forth in the Protest form instructions, so that the Rent Administrator, the Hearing Officer and the residents may ascertain the portion of the Protest to which any set of documentation pertains.
C. Service on Park Owner. Upon receipt of Protest by the City, the Rent Administrator shall serve a copy of the Protest upon the park owner.
D. Affidavit or Declaration Under Penalty of Perjury. The Protest shall also include an affidavit of or declaration in accordance with the City-approved form, signed by the person submitting the Protest, under penalty of perjury under the laws of the State of California, certifying that:
1. The person filing the protest served a copy of the Protest on the petitioner and the petitioner’s representative as required by this Rule; and.
2. All representations, information and documentation contained in the Protest are true and correct.
10.12 Hearings and Appeals on Capital Improvement Rent Increase Petitions.
A. Mobile Home Rent Stabilization Hearing Officer. Except as otherwise provided in CMC Section 9.05.090 and this Chapter 10, Ppublic hearings before the Hearing Officer on Capital Improvement Rent Increase petitions shall be heard in accordance with CMC Section 9.05.110 and Rule 8.6 of these Rules.
B. City Council Appeals. Appeals from decisions of the Hearing Officer on Capital Improvement Rent Increase petitions shall be submitted, processed Formatted: Not Highlight
63 and heard in accordance with CMC Section 9.05.120 and Chapter 9 of these Rules.
10.13 Applicability of Chapter
This Chapter shall apply to all Capital Improvements performed. The improvement shall meet the definition of capital improvements set forth in Section 9.05.030 of the Ordinance and Rule 10.2 of these Administrative Rules.
CHAPTER 11 – PREVAILING PARK OWNER PETITION FOR RECOVERY OF SPECIAL
RENT INCREASE PETITION AND HEARING COSTS INCURRED BEFORE THE
BOARDHEARING OFFICER
11.1 Scope.
Pursuant to CMC Section 9.05.140, this Chapter provides a mechanism for a park owner who successfully obtains approval of a Special Rent Increase or Capital Improvement Rent Increase from the City, to also request a Temporary Rent Increase for recovery of certain costs incurred in preparing and presenting his/her Special Rent Increase Petition or Capital Improvement Rent Increase Petition to the City.
11.2 Eligibility..
A. A Park Owner may obtain approval of a Temporary Rent Increase for the amortized cost of specified professional services actually incurred in preparing and presenting his/her petition for a Special Rent Increase or for a Capital Improvement Rent Increase to the Hearing Officer only if the park owner successfully obtains approval of a Special Rent Increase or Capital Improvement Rent Increase pursuant to a final decision of the City.
B. Eligible costs shall include those fees, costs and other expenses incurred by the Park Owner in the proceedings before the Hearing Officer, or upon any appeal filed with the City Council, pursuant to a final decision, as further provided in this Chapter.
11.3 Burden of Proof.
The park owner shall bear the burden of proof to demonstrate, by substantial evidence, that the park owner is entitled to a Temporary Rent Increase under this Chapter, including (i) that the park owner is the prevailing party on the Special Rent Increase petition, (ii) that the park owner actually incurred the professional services costs, (iii) the reasonableness of the costs, and (iv) the amount of the proposed Temporary Rent Increase.
11.4 Definitions.
As used in this Chapter, the following terms shall have the following meanings:
64 A. “Fees, costs and other expenses” means hourly rates, lump sum charges based on specific tasks or projects, and duplication costs. “Fees, costs and other expenses” excludes the following: costs to recover documents from storage, costs to compile documents from computer records or other electronic records, costs incurred to develop software programs, and printing costs from computers or other electronic devices.
B. “Final Decision” means either (i) a final decision issued by the BoardHearing Officer on a Special Rent Increase Petition or Capital Improvement Rent Increase Petition pursuant to Rule 8.76(F) and (G) when no timely appeal is filed, or (ii) a final decision issued by the City Council pursuant to Rule 9.86 on a Special Rent Increase Petition or Capital Improvement Rent Increase Petition when a timely appeal from the City Council’s decision on the Petition is filed.
C. “Prevailing Park Owner” means a park owner who obtains approval of a Special Rent Increase or Capital Improvement Rent Increase pursuant to a final decision of the City.
D. “Professional Services” means legal, accounting, financial, appraisal, bookkeeping, property management, or engineering services actually incurred by the Park Owner in preparing and presenting his/her successful Special Rent Increase Petition or Capital Improvement Rent Increase Petition to the BoardHearing Officer, subject to the following requirements and limitations:
1. Legal expenses must be performed by an attorney duly licensed to practice before the courts of the State of California, any certified paralegal working under the supervision of any such attorney and shall not include secretarial or other clerical time or expenses. .
2. Accounting services must be performed by a Certified Public Accountant, or an accountant working directly under the supervision of a CPA.
3. The following fees, costs and other expenses shall be excluded from the determination of any Temporary Rent Increase under this Chapter 11:
a. All fees, costs and other expenses for professional services incurred in preparing or presenting any opposition to any protest filed by any park residents to an Annual Increase to the City under CMC Section 9.05.080 and Chapter 6 of these Rules; and b. When a Temporary Rent Increase is sought by a prevailing park owner based on the City’s final decision with regard to a Special Rent Increase Petition, the Temporary Rent Increase
determination shall also exclude the following:
(i) All fees, costs and other expenses for professional services that fall within the category of operating expenses as “allowable legal expenses” under CMC Section
65 9.05.100(B)(9), whether or not included in the Special Rent Increase Petition;
(ii) All fees, costs and other expenses for professional services that are expressly excluded from the definition of “allowable legal expenses” under CMC Section
9.05.100(B)(9)(a); and
(iii) All fees, costs and other expenses for professional services incurred in connection with any Petition for
Capital Improvement Rent Increase, filed with the City
pursuant to CMC Section 9.05.090, or appeal in
connection therewith pursuant to CMC Section 9.05.120,
whether or not such petition was granted by the City.
c. When a Temporary Rent Increase is sought by a prevailing park owner based on the City’s final decision with regard to a Capital Improvement Rent Increase Petition, the Temporary Rent
Increase determination shall also exclude the following:
(i) All fees, costs and other expenses for professional services that are expressly excluded from the definition of “allowable legal expenses” under CMC Section
9.05.100(B)(9)(a); and
(ii) All fees, costs and other expenses for professional services incurred in connection with any Petition for
Special Rent Increase, filed with the City pursuant to CMC Section 9.05.100, or appeal in connection therewith
pursuant to CMC Section 9.05.120, whether or not such
petition was granted by the City.
E. “Relevant geographical area” means the City of Calimesa, the County of San Riverside and the County of San Bernardino.
F. “Substantial evidence” means evidence as defined in Section 8.76(E) of these Rules.
11.5 Procedures.
A. Petition Form and Timing.
1. The Park Owner must file the request for approval of a Temporary Rent Increase as part of the Petition for a Special Rent Increase pursuant to Chapter 7 of these Rules, or the Petition for a Capital Improvement Rent Increase pursuant to Chapter 10 of these Rules, in accordance with the City-approved form. The request for a Temporary Rent Increase must include all supporting information and documentation in accordance with these Rules and the City-approved forms. .
66 2. If, at the time of filing the request for a Temporary Rent Increase, the park owner is unable to determine the total fees, costs and other expenses that will be incurred by him/her for professional services in connection with the actual public hearing on the Petition for Special Rent Increase or Capital Improvement Rent Increase, the following procedures shall be followed:
a. The park owner shall include all costs incurred for professional services as of the date of filing the request for Temporary Rent Increase in the Petition for Special Rent Increase or Capital Improvement Rent Increase; and an estimate of any additional fees, costs and other expenses for professional services to be incurred in actually presenting the Petition to the BoardHearing Officer during the public hearing before the Hearing Officer. b. Prior to the close of the public hearing before the Hearing Officer on the Petition, the park owner shall notify the Hearing Officer in writing and provide copies to the Rent Administrator and park residents, of any additional professional service fees, costs and other expenses incurred in the hearing on the Petition before the Hearing Officer, along with all supporting information and documentation. All parties shall have the opportunity to review all such information and documentation, and to conduct examination of any relevant witnesses, in connection with such additional costs, before the public hearing is closed.
c. Once the public hearing is closed, no additional evidence regarding any fees, costs or other expenses related to
professional services shall be introduced or admitted into evidence by the Hearing Officer.
3. Failure of a park owner to meet the timing requirements of Subsections (a), (b) or (c) shall constitute a waiver of the park owner’s right to request a Temporary Rent Increase for recovery of the fees, costs and other expenses for professional services incurred in preparing and presenting the Petition for a Special Rent Increase or Capital Improvement Rent Increase to the Hearing Officer.
B. Forms. The City has prepared forms for use in filing a petition for Temporary Rent Increase, as part of the Special Rent Increase Petition and Capital Improvement Petition forms. Petitioners are encouraged to use the Cityapproved forms. Although use of the City-approved forms is not mandatory, any person filing a request for Temporary Rent Increase shall provide all information and documentation required by the City-approved forms. Failure to do so may result in the Rent Administrator finding that the request for a Temporary Rent Increase is incomplete, and/or may provide grounds for the City to deny the Temporary Rent Increase on the grounds that the park owner did not meet its burden of proof.
67 C. Format. All pages of the Temporary Rent Increase Petition form and supporting documentation must be paginated; and all supporting documentation must be marked to correspond to the related section and page of the Petition form. Seven (7) copies of the Petition and all supporting documentation and records, including but not limited to, proofs of service and posting and affidavits, must be filed with the Rent Administrator, along with an electronic copy of the Petition and supporting documents and records, proofs of service and posting and affidavits, and two sets of stamped envelopes addressed to the affected residents. All copies shall be identical.
Documentation submitted shall be correlated by the petitioner to the order set forth in the Petition instructions, so that the Rent Administrator, the Hearing Officer and the residents may ascertain the portion of the Petition to which any set of documentation pertains. Failure to do so may result in a determination by the Rent Administrator that the Petition is not complete. The Temporary Rent Increase Petition form and supporting documents may be combined with the petition for special rent increase but shall be clearly marked to distinguish the petition for Temporary Rent Increase and supporting documents from the special rent increase petition.
D. Service on Opposing Party. In accordance with CMC Section 9.05.110(F), prior to or concurrently with filing the Petition with the city, the petitioner shall:
1. Serve a copy of the Petition on the designated park resident representative, along with proof of service.
2. Serve notice of filing of the Petition on each affected resident in the park, along with proof of service, in accordance with the City-approved notice form by personally delivering the notice to the residents, or by mailing the notice to each resident by first-class mail, postage prepaid.
The petitioner shall also include a copy of the proofs of service with the petition filed with the City.
E. Maintenance of Copies of Complete Petition at Park. Four complete copies of the Petition, and any additional information or documentation filed by the petitioner during the review and processing of the Petition, shall be maintained at the park until issuance of a final decision by the City on the Petition, in accordance with CMC Section 9.05.110(E).
F. Posting Requirements. Notice of filing of the Petition, and any information or documentation filed by the petitioner during the review and processing of the Petition by the City, shall be posted by the petitioner in the park in accordance with CMC Section 9.05.110(E).
G. Affidavit or Declaration Under Penalty of Perjury. The Petition shall include an affidavit of or declaration in accordance with the City-approved form, signed by the petitioner under penalty of perjury under the laws of the State of California, certifying that:
68 1. The petitioner complied with each of the service and posting requirements of Sections (A) through (F) of this Rule; and
2. All representations and information set forth in the Petition are true and correct.
11.6 Filing Fee
A. City Council Action. The Petition for Temporary Rent Increase shall be accompanied by the filing fee established by resolution of the City Council. The filing fee shall be used to offset the costs incurred for staff time, time incurred by experts retained by the City to evaluate the petition, and postage and duplication.
B. Additional Fee. If the City determines that Staff will incur additional time and expert costs to evaluate the petition, the petitioner shall be required to submit any additional deposit(s) deemed necessary to cover the additional costs. The City Council may modify the filing fee by resolution from time to time, and any such modification shall be incorporated herein by this reference on the date of adoption of the City Council Resolution.
C. Failure to Pay Filing Fee. The petitioner must pay the initial filing fee with his/her Petition in order for the Petition to be deemed complete, in addition to any other requirements of this chapter. Any additional fee required by the City must be paid at least sixty days prior to the public hearing before the Hearing Officer.
D. Factors to Determine Reasonableness of Fees, Costs and Other Expenses. A Temporary Rent Increase under this Chapter shall be awarded only if the Park Owner demonstrates by substantial evidence that he/she is the Prevailing Park Owner, and that such fees, costs and other expenses were reasonably incurred and reasonable in amount and that such fees, costs and other expenses resulted from eligible professional services. In considering a request for a Temporary Rent Increase, the Hearing Officer shall consider all relevant factors, including but not limited to, the following:
1. Whether the services were performed by a person possessing a duly issued license or certificate in accordance with applicable state, local or federal requirements, as applicable..
2. The experience of the person who performed the services in connection with the petition.
3. Whether the services and/or resulting costs were unnecessarily duplicative, including but not limited to use of multiple personnel and/or excessive time incurred, given the nature and complexity of the issues, and experience of the professional(s).
4. The rate charged for those professional services in the relevant geographic area.
69 5. The complexity of the matter.
6. Whether the records provided in support of the claimed costs reflect business practices consistent with the industry standard, such as welldocumented records and contemporaneously prepared at the time services were rendered.
7. Whether the records provided reflect work duplicative of work presented in other proceedings and not correlated to specific work performed in the present proceeding.
8. Whether, and to what extent, the costs incurred reflect unwarranted delay or extended hours intended to maximize the cost rather than complete the tasks in a reasonable period of time.
9. Whether, and to what extent, the party claiming such costs refuses or fails to disclose details of the work performed, and the reasons for such failure or refusal.
10. The relationship of the result obtained to the expenses, fees, and other costs incurred (that is, whether professional assistance was reasonably related to the result achieved) and consistent with the purposes and intent of the Ordinance and these Rules in relation to any Special Rent Increase sought under the Ordinance and these Rules.
E. Documentation Required. A Park Owner who seeks a Temporary Rent Increase pursuant to this Chapter shall be required to submit the following information and documentation to the City:
1. The retainer agreement or other contract reflecting the hourly rate or other charge, the scope or assignment of work to be performed, the specific tasks to be performed, by the professional, and the person(s) who assigned or determined the specific tasks to be performed by the professional..
2. Documentation reflecting actual hours incurred and specific tasks performed, with sufficient detail for the Hearing Officer or City Council to determine whether the factors set forth in the Ordinance and these Rule have been met by the party seeking recovery of costs.
3. A declaration or affidavit signed under penalty of perjury by the person performing each professional service, confirming his/her performance of the services, the relevance of the tasks to the petition or appeal at issue, and the reasonableness of the claimed costs.
4. A declaration or affidavit signed under penalty of perjury by the park owner or park resident representative, certifying that such party has paid, or is obligated to pay, for such costs incurred by the professional
70 on his/her behalf in connection with the hearing.
5. Any additional information or documentation required by the Rent Administrator, Hearing Officer and/or City Council to assist the City in determining whether a Temporary Rent Increase should be granted.
F. Procedures. A request for a Temporary Rent Increase, and any appeal in connection therewith, shall be processed in accordance with and subject to the petition and hearing procedures set forth in Chapters 8 and 9 of these Rules.
G. Hearing Officer Award to Successful Park Owner; Hearing Officer Final Decision.
1. At the conclusion of the hearing on a Special Rent Increase Petition or Capital Improvement Rent Increase Petition, if the Hearing Officer grants the Special Rent Increase or Capital Improvement Rent Increase to the Park Owner, the Hearing Officer shall also have the authority to approve as submitted, approve as modified by the Hearing Officer, or deny a Temporary Rent Increase for the prevailing park owner. Any Temporary Rent Increase awarded shall be limited to the amortized portion of the fees, cost and other expenses incurred by the Park Owner in connection with preparing and presenting the Special Rent Increase Petition or Capital Improvement Rent Increase Petition to the Hearing Officer, as determined by the Hearing Officer. The Hearing Officer shall not deny a Temporary Rent Increase either as proposed, or as modified by the Hearing Officer, unless the prevailing park owner fails to submit any documentation or other competent evidence in support of the claimed Temporary Rent Increase, or the Hearing Officer is otherwise unable to make any of the findings set forth in Section (C) of this Rule based upon objective evidence submitted in accordance with Section
9.05.140 of the Ordinance and this Chapter.
2. The Hearing Officer’s decision on a Temporary Rent Increase shall be included in the Hearing Officer’s decision on the underlying Special Rent Increase Petition or Capital Improvement Rent Increase Petition, and shall include: (a) findings on the factors set forth in CMC Section
9.05.140 and Rule 11.4(C) of this Chapter; (b) if the request for a Temporary Rent Increase is granted, the amount of the Temporary Rent Increase; and (c) if the request is denied, the facts and circumstances supporting the denial.
3. If the Temporary Rent Increase is granted, the Hearing Officer’s decision shall also include (a) a calculation of the amount owed if any resident chooses to pay the Temporary Rent Increase in one lump sum without the payment of any interest, rather than amortized over a fiveyear period; and (b) the amount owed as a Temporary Rent Increase over the five-year amortization period, including interest calculated per annum, compounded monthly, based on the lesser of (i) the current prime rate plus 1% or (ii) the actual interest cost incurred by the park
71 owner. Any resident may pay the Temporary Rent Increase in one lump sum so long as such resident pays the full amount no later than thirty (30) days following the final decision of the City. Upon payment of the full lump sum, the resident shall be deemed to have fully paid the Temporary Rent Increase, and the Temporary Rent Increase shall not thereafter appear on the resident’s monthly rent statement.
4. The Hearing Officer’s decision on a Temporary Rent Increase shall be final unless the park owner or park resident representative files a timely appeal from the Hearing Officer’s decision in accordance with CMC Section 9.05.120 and Section (G) of this Rule 11.4.
H. Appeal to City Council.
1. Right to Appeal. Either party may file an appeal from the Hearing Officer’s final decision on the Park Owner’s request for a Temporary Rent Increase in accordance with the requirements of CMC Section
9.05.120 and Chapter 9 of these Rules. .
2. Deadline to Appeal. The deadline to file an appeal from the Hearing Officer’s decision on a Temporary Rent Increase is not later than the fifteenth (15th) day after the resolution of the Hearing Officer’s decision has been deposited in the mail by the Rent Administrator, by first-class mail, postage prepaid in accordance with Rule 9.2. The appeal, appeal fee and all supporting documentation shall be filed with the Rent Administrator.
I. City Council Review and Determination.
1. City Council Review and Determination. If the park owner successfully appeals the decision of the Hearing Officer regarding his/her Petition for a Special Rent Increase or Capital Improvement Rent Increase and becomes the prevailing party on appeal, at the conclusion of the appeal hearing the City Council shall also have the authority to approve or approve a modified Temporary Rent Increase to the prevailing Park Owner in accordance with this Chapter 11.
2. City Council Scope of Authority. In considering any appeal with regard to a Temporary Rent Increase, the City Council’s authority shall be subject to the following provisions:
a. If an appeal was filed from the Hearing Officer’s decision granting a Temporary Rent Increase, the decision of the City Council on the appeal shall be subject to the provisions of Rule 9.5. b. If the City Council reverses the Hearing Officer’s decision denying the park owner a Special Rent Increase and the park owner also filed a petition for a Temporary Rent Increase that was denied by the Hearing Officer, the City Council may review
72 de novo the record submitted to the Hearing Officer on the proposed Temporary Rent Increase in accordance with the provisions of Section (C) and (F)(1) of this Rule 11.4. Any decision of the City Council to award a Temporary Rent Increase either as approved by the Hearing Officer or as modified by the City Council following the grant or denial of any appeal, shall be limited to the amortized portion of the fees, cost and other expenses incurred by the Park Owner in connection with the Special Rent Increase Petition or Capital Improvement Rent Increase in proceedings before the Hearing Officer, as
determined by the City Council, and any additional costs incurred by the park owner in his/her successful appeal to the City Council.
3. City Council Decision. The City Council’s written decision shall include any findings to support its decision granting or denying any appeal, or modify any decision of the Hearing Officer, with respect to the request for approval of a Temporary Rent Increase.
J. Final Decision. The City Council’s final decision on a park owner’s request for a Temporary Rent Increase pursuant to this Chapter 11, shall be included in the final decision of the City Council on any appeal issued and served pursuant to Rules 9.6 through 9.9 of Chapter 9.
K. Statute of Limitations. Any legal challenge to a final determination issued by the City Council granting or denying an appeal with respect to a request for a Temporary Rent Increase, must be filed in accordance with CMC Section
9.05.170.
73 APPENDIX “A”
AMORTIZATION SCHEDULE FOR CAPITAL IMPROVEMENT RENT INCREASES AND
AMORTIZABLE CAPITAL EXPENSES
(reference: CMC Sections 9.05.090 and 9.05.100(B)(7)(f) and (g); Chapters 9 and 10 of Administrative Rules)
Capital Improvements shall be amortized in accordance with the following schedule; or with the approval of the Hearing Officer, in accordance with any useful life table utilized by the Internal Revenue Service or any other reasonable amortization period supported by competent evidence.
Improvement Amortization
Period In Years
Improvement Amortization Period
In Years
Air Conditioners 7 Heating 10
Appliances (other than
those listed) 7 Insulation 10
Cabinets 7 Painting (exterior) 10
Carpentry 10 Painting (interior) 5
Carpeting 7 Paving (asphalt, cement) 15
Dishwasher 7 Plastering 10
Doors 10 Plumbing
Dryer 7 Fixtures 10
Electrical Wiring 15 Pipes 15
Elevator 20 Pumps 7
Fan 7 Refrigerator 7
Fencing Roofing 10
Block walls 15
Security Entry Telephone
Intercom 7
Wood Smoke Detector 7
Fire Alarm System 7 Stove 7
Fire Escape 15 Stucco 10
Floor Covering (linoleum
or vinyl) 7 Walls 10
Flooring 7 Washing Machine 7
Furniture 7 Water Heater 7
Garbage Disposal 7 Window Coverings 7
Gates 15 Windows 15
Gutters 15
City Council Meeting
Agenda Report
Agenda Item No. 8
SUBJECT: FIRE DEPARTMENT VEHICLE EMERGENCY EQUIPMENT AND
ELECTRONICS OUTFITTING AND WAIVER OF FORMAL BIDDING FOR
THE SPECIFIED DESIGN BUILD TO BE AWARDED TO THE JOHNSON
EQUIPMENT COMPANY
MEETING DATE: October 20, 2025
PREPARED BY: Fire Chief O’Connell
______________________________________________________________________________ RECOMMENDATION: That the City Council approves the purchase and installation of the specified hardware, wiring, and emergency warning equipment, including lights, siren, mounting brackets, radios, computers, and battery charging inverter equipment, necessary to complete the fabrication and construction of the previously approved 2025 truck for service as a Fire Department Squad Vehicle. Waiving the formal bidding process.
BACKGROUND: In May 2025, the City Council approved the purchase of a Fire Department vehicle (Ford F150/F250) to replace the existing “Squad,” which has exceeded its useful service life due to age, high mileage, escalating repair costs, and efficiency concerns. Outfitting this vehicle with the necessary emergency warning systems and various communications electronics, ensures it is fully operational as a first-response Squad. The squad is a light vehicle which serves as a force multiplier and responds to lower acuity calls for service, or remote areas located in the city, whereby larger apparatus may not be able to access.
DISSCUSION: This project aligns with the Fire Department’s 2025–2026 Operational Goals and Objectives to replace or repair aging apparatus and equipment within established budgetary constraints. Utilizing a preestablished “piggyback,” “Kern County Fire Department,” specification and existing bid award, which provides the city with a cost-effective, streamlined procurement method which also ensures compatibility, proven reliability, reduced delivery timelines, and compliance with established communications dispatch radio hardware and software equipment specifications and requirements. Additionally, the use of Johnson Equipment for the completion of this project will result in a cost reduction as the vendor will be recycling suitable electronic components and radios, and selected hardware, which will be removed from emergency vehicles being surplused from the existing Calimesa Fire Department fleet. Johnson Equipment possesses the additional required electronics installation equipment, hardware, software and technical expertise to complete this project as required.
FISCAL IMPACT: The Adopted 2025–2026 General Operating Budget identifies $80,000 in the General Fund Capital Improvement Plan for this project. The quoted cost for Squad Vehicle electronics, emergency equipment, and outfitting totals $15,977.25 (including tax), which is within the approved budget allocation.
______________________________________________________________________________ ATTACHMENTS:
Attachment A: Johnson Fire Equipment Quote
Quote
Date
9/16/2025
Quote #
6565
Bill To:
City of Calimesa
906 Park Avenue
Calimesa, California 92320
Ship To:
City of Calimesa
906 Park Avenue
Calimesa, CA 92320
P.O. No. Terms
Net 30
Rep
GJ
FOB
Perris, Ca
Project Make / Model / Year
Signature Total
Subtotal
test Sales Tax (7.75%)
7 Qty Item Description Each Total
1.00 Egis 4703-150B Egis Circuit Breaker 85 Series 150 A, Surface Mount 23.50 23.50T
1.00 JEC-CB-Bracket JEC Circuit Breaker Bracket 26.60 26.60T
1.00 BS 7615B Blue Sea ATD Automatic Timer Disconnect 114.80 114.80T
3.00 BS 5029B Blue Sea Fuse Block STBlade 12circ w/cvr 32.45 97.35T
1.00 Egis 901488 Egis Relay, 12V 75 Amp 23.50 23.50T
Whe TLI2D Whelen Whelen ION T-Series DUO Linear Super-LED, Red/White (Grille)
2.00 88.80 177.60T
Whe TLI2D Whelen Whelen ION T-Series DUO Linear Super-LED, Red/White (Front Fender)
2.00 88.80 177.60T
Whe VTX9K Whelen Vertex Super-LED Light, DUO, Self-Contained Lighthead with 25 Scan-Lock Flash Patterns, Including
Steady-Burn, Red/Amber
2.00 81.60 163.20T
Whe BJ2DDDD Whelen 54" Liberty II Duo WeCanX wth Options, Red/White
1.00 2,564.40 2,564.40T
1.00 Priority MTER Priority Green Microtube Extreme Range 345.00 345.00T Whe C399 Whelen Cencom Core Amplifier Control Module, Flashing Outputs, Includes 3 WeCanX™ Ports, and Controls up to
99 Devices/Remote Modules, Control Heads Purchased
Separately
1.00 1,030.80 1,030.80T
Whe CCTL7 Whelen 3 Section Control Head and 21 Push-Buttons, 4-Position Slide Switch, Microphone with Extension Cable
1.00 0.00 0.00T
Whe C399SP Whelen SCANPort Installation Kit for C399, See Vehicle Outfitter for available vehicle Make/Model/Year (Not for use with Core-R and Core-S)
1.00 0.00 0.00T
Whe SA315P Whelen SA315 Series, Small Round Profile, Composite Speaker
1.00 178.80 178.80T
Whe SAK61AP Whelen Speaker Bracket for Ford F-250/F-350, 2023, Ford F-450/F-550, 2023, F600, 2023 Passenger Side,
Replaces SAK61P
1.00 0.00 0.00T
Attachment 8A
Quote
Date
9/16/2025
Quote #
6565
Bill To:
City of Calimesa
906 Park Avenue
Calimesa, California 92320
Ship To:
City of Calimesa
906 Park Avenue
Calimesa, CA 92320
P.O. No. Terms
Net 30
Rep
GJ
FOB
Perris, Ca
Project Make / Model / Year
Signature Total
Subtotal
test Sales Tax (7.75%)
7 Qty Item Description Each Total
Troy CC-WBOS-16 Troy Products Universal SUV/truck 16" Wide-body open-storage console; 8" slope 8" level
1.00 514.40 514.40T
Troy AC-F150-15-MNT Troy Products 2015-17 F-150/2017 F250-550 floor plate; For bucket seat trucks or factory console removed
1.00 0.00 0.00T
1.00 Troy FP-WCENCOM-JD Troy Products 4" faceplate for Whelen Cencom siren 0.00 0.00T Troy FP-BKM150-R Troy Products 3" Faceplate for Bendix King M150 Remote Radio
1.00 0.00 0.00T
1.00 Troy FP-SGTRAY Troy Products 4" Storage Tray 0.00 0.00T
1.00 Troy AC-INBH-G Troy Products 4” Internal beverage holder w/rubber fingers 41.47 41.47T
1.00 Troy FP-BLNK1 Troy Products 1" Blank Faceplate 0.00 0.00T
1.00 Troy AC-OC-FILEBOX Troy Products Wide Body Hinged File Box, Hinges at Rear 271.51 271.51T
1.00 Misc parts underseat box 400.00 400.00T
PCT NMO58U-NC PCTel 3/4" Hole NMO Brass Mount with Gold Pin 17' RG58U, No Connector
2.00 19.01 38.02T
1.00 Laird QWRC Laird Chrome Rain Cap 10.92 10.92T
1.00 Laird MOGSK Laird NMO Gasket 0.34 0.34T
PCT MWB-1320 PC Wide band quarterwave antenna with shock spring.
Bandwidth- 24 MHz VHF/ 100 MHz UHF.
1.00 61.54 61.54T
1.00 RF RFU505-ST RF Industries Silver Plated UHF Male Crimp Connector 7.60 7.60T BSL10-7548-CLS Bedslide 1000 Classic 75 in. x 48 in., Includes 4 D-Ring Tie Downs, 1000 lbs. Weight Capacity, Silver,
1.00 1,380.59 1,380.59T
1.00 Misc parts Misc battery cable, wire, fuses and hardware 450.00 450.00T
58.00 Labor Installation Labor 125.00 7,250.00
_____________________________________ $15,977.25
$15,349.54
$627.71
City Council Meeting
Agenda Report
Agenda Item No. 9
SUBJECT: FIFTH AMENDMENT TO AGREEMENT FOR 6
th CYCLE HOUSING
ELEMENT UPDATE CONSULTING SERVICES (TO INCLUDE A
SAFETY ELEMENT UPDATE) BETWEEN THE CITY OF
CALIMESA AND KIMLEY-HORN AND ASSOCIATES, INC
(“CONSULTANT”)
MEETING DATE: October 20, 2025
PREPARED BY: Kelly Lucia, Planning Director
RECOMMENDATION: That the City Council approve the Fifth Amendment for 6 th Cycle Housing
Element update consulting services (to include a Safety Element update), between the City of Calimesa and Kimley-Horn Associates, Inc. and authorize the Mayor to execute the Agreement.
BACKGROUND: The City entered into an agreement with Kimley-Horn for the General Plan 6th Cycle Housing Element update on June 7, 2021. The City Council approved the First Amendment to extend the contract term on June 20, 2022, the Second Amendment to further extend the term on June 19, 2023, the Third Amendment to increase the total contract amount to allow final processing with HCD on April 14, 2024, and the Fourth Amendment to add additional tasks related to required Housing Element implementation on December 2, 2024.
DISCUSSION: The current request is for the Fifth Amendment to update the Safety Element of the General Plan. This update is required by Government Code Section 65302.5. If approved, KimleyHorn will review and evaluate the current Safety Element to determine compliance with state law.
At a minimum, it is anticipated the current Safety Element will require the following regulatory updates:
• Update the Safety Element upon each revision of the Housing Element or Local Hazard Mitigation Plan (SB 1035)
• Update flood-related information and strengthens flood protection measures (AB 162)
• LHMP integration or incorporation by reference into the Safety Element (AB 2140).
• Extreme heat impacts (AB 2684)
• Climate change adaptation and resilience discussion and policies in the Safety Element, including drought and sea level rise based on vulnerability assessment (SB 379, codified by Government Code 65302(g)(4)).
• Identification of evacuation routes and access to two or more evacuation routes for residential areas (SB 99).
• Establish policies to address development in Very High Fire Hazard Severity Zones (SB 1241).
• Consultation with Cal FIRE and the Department of Conservation on wildfire policies (SB 1241).
• Kimley-Horn will review existing conditions and provide recommendations for other policy areas that may enhance the Safety Element, such as Crime Prevention through Environmental Design (CPTED), hazardous materials, public health, or public safety awareness and education.
FISCAL IMPACT: The 2025-26 FY budget includes $70,000 for this General Plan Safety Element update (account 01-3000-7210). The Amendment 5 fee proposal (Attachment B) anticipates a total fee of $80,751. No additional appropriations are requested at this time as the City anticipates savings from other professional services contracts.
ATTACHMENTS:
Attachment A: Fifth Amendment to Agreement for 6
th Cycle Housing Element update Consulting
Services (to include a Safety Element update) between the City of Calimesa and Kimley-Horn and Associates, Inc. (“Consultant”)
Attachment B: Scope of Work and Fee Proposal – Amendment No. 5 to Professional Services Agreement
1 FIFTH AMENDMENT TO AGREEMENT FOR 6
th CYCLE
HOUSING ELEMENT UPDATE CONSULTING SERVICES
(TO INCLUDE A SAFETY ELEMENT UPDATE) BETWEEN
THE CITY OF CALIMESA AND KIMLEY-HORN AND
ASSOCIATES, INC (“CONSULTANT”)
This Fifth Amendment (herein “Fifth Amendment”) is entered into this 20 th day of October
2025 and is an amendment to that certain Agreement (herein “Agreement”) that was made and entered into on June 7, 2021 and between the City of Calimesa, a California municipal corporation (“City”) and Kimley-Horn, a North Carolina corporation (“Consultant”). City and Consultant may be collectively referred to as “Parties.”
R E C I T A L S
WHEREAS, City has determined that it requires a consultant to provide planning and environmental consulting services;
WHEREAS, Consultant represents that Consultant has the necessary education, experience, skills, and expertise to provide the type of services needed by City to provide planning and environmental consulting services;
WHEREAS, on June 7, 2021, the City entered into an Agreement with Consultant to provide planning and environmental consulting services to the City with an agreed upon cap in payment for all terms of $199,430;
Whereas, on June 20, 2022, the City approved the First Amendment to the Agreement to extend the term until June 7, 2023;
WHEREAS, on June 19, 2023, the City approved the Second Amendment to the Agreement to extend the term to June 30, 2024, with an option to extend to June, 30 2025; WHEREAS, on April 15, 2024, the City approved the Third Amendment to the Agreement to extend the term to June 30, 2025, with an option to extend to June 30, 2026, and to increase the not-to-exceed amount by $15,000 for work performed prior to June 30, 2025; and WHEREAS, on December 2, 2024, the City approved the Fourth Amendment to the Agreement to include Housing Element program implementation in the scope of work, and to increase the not-to-exceed amount by $38,295; and
WHEREAS, the Parties now desire to amend the Agreement to include an update to the General Plan Safety Element in the scope of work, and to increase the not-to-exceed amount by $80,751.
NOW, THEREFORE, the Parties agree as follows:
Section 1. Subsections 4.A and 4.B of Section 4 (Payment) are hereby amended in their entirety to read as follows:
Attachment 9A
2 “A. City shall pay Consultant monthly for Services actually provided, in accordance with the payment rates and terms and the schedule of payment as set forth in Exhibit C (Compensation for Services), attached hereto and incorporated herein by this reference as though set forth in full. In accordance with Exhibit C, total fees for services shown in the Scope of Work (Exhibit B) shall be provided on a lump sum basis not to exceed $333,476 in accordance with Paragraph B of this Section 4, and in accordance with the conceptual breakdown of Consultant’s fees listed in Exhibit C. Charges for Services will be billed monthly on a percent complete basis.” “B. The total amount paid to Consultant under this Agreement, as amended, for the Term, as previously extended, shall not exceed $333,476, including Reimbursable Expenses in accordance with Exhibit C, unless additional payment is approved by the City Manager as provided in Paragraph (C) of this Section 4. As used in this Agreement, the term “Reimbursable Expenses” means charges for printing, copying, mileage, postage, outside services, or other services not specifically listed in the Scope of Work (Exhibit B). Reimbursable Expenses will be billed on a time and material basis, in accordance with Exhibit C (Compensation for Services), attached hereto and incorporated herein by this reference. Project review and/or filing fees are not included in this Agreement and shall be paid by the City directly to the appropriate governmental agency.
Consultant’s maximum total compensation of $333,476 also includes payment of all taxes, insurance and fringe benefits, as well as all indirect costs, overhead and profit allowance, vehicles, travel, equipment, materials and supplies, except as otherwise authorized in Exhibit C unless payment for additional expenses is approved by the City Manager in accordance with Paragraph B of this Section 4.
Section 2. Except as otherwise amended in the previously approved First, Second, Third, Fourth, and this Fifth Amendment, the remaining provisions of the Agreement shall remain in full force and effect.
IN WITNESS WHEREOF, City and Consultant have executed this Fifth Amendment to the Agreement the day and year first above written.
ATTEST:
By: ____________________________
Darlene Gerdes, City Clerk
“City”
THE CITY OF CALIMESA, a municipal
corporation of the State of California
By:
Linda Molina, Mayor