Agenda packet, first session — Malibu City Council, October 28, 2024 (part 4 of 5)

Agenda Item # 6.B.

Council Agenda Report
To: Mayor Stewart and the Honorable Members of the City Council Prepared by: Alexis Brown, Deputy City Manager
Reviewed by: Joseph D. Toney, Assistant City Manager
Approved by: Steve McClary, City Manager
Date prepared: October 1, 2024 Meeting date: October 28, 2024 Subject: Strategic Workplan Fiscal Year 2024-25
RECOMMENDED ACTION: Adopt the Strategic Workplan for Fiscal Year 2024-25.

FISCAL IMPACT: There is no fiscal impact associated with the recommended action.

DISCUSSION: At the Special City Council meeting of September 18, 2024, the Council conducted a review of the City's FY 2023-24 Strategic Workplan, addressing both completed projects and the addition of new high-priority items for FY 2024-25. As part of this review, five projects from the previous Workplan were marked as completed and moved into day-to-day operations for continued implementation and monitoring.

These completed projects are:
• Classification and Compensation Study
• Malibu High School Coastal Development Permit (CDP)
• Accessory Dwelling Unit (ADU) Ordinance
• Exterior Elevated Elements Ordinance (E3)
• Fee Schedule Update
Considering these completions and a reevaluation of current city priorities, the Council identified five new high-priority projects to be incorporated into the FY 2024-25 Strategic Workplan.

These projects are crucial for addressing key safety, infrastructure, and financial priorities in the coming year:

City Council Meeting
10-28-24
Item

6.B.
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Agenda Item # 6.B.

1. PCH Safety Initiatives

2. PCH Las Flores and Ramla Pacifica Intersection Improvements

3. Impound Yard

4. “Snack Shack” at Malibu Bluffs Park

5. Fund Balance Policy
Background
On September 27, 2023, the City Council approved the City’s first Strategic Workplan to help focus and prioritize staff efforts on the most important projects. This workplan was the result of an extensive conversation between the Council and City staff leadership during a series of productive workshops earlier in the year. These discussions addressed the difficult challenge of managing a finite staff that must balance a significant load of dayto-day operations, while also responding to community demands for special projects.

Since the adoption of the Strategic Workplan, the Council has received updates on its progress, with the last update provided in February 2024. Due to the high volume of daily operational tasks, further updates have been delayed. Despite this, staff has made substantial progress, completing several key projects, which are now in the monitoring and implementation phase.

Since the workplan’s approval, additional high-priority projects have been assigned to staff that were not included in the original plan. Considering these new priorities, staff is requesting that the Council review the current list of projects and provide guidance on how to reprioritize the workload for the next six months.

The City Council held a Special Meeting on September 18, 2024. With this updated workplan, staff is seeking direction from the Council to proceed with the implementation of the new high-priority items, while continuing to manage daily operations.

ATTACHMENTS:

1. Proposed Reprioritized Strategic Workplan for FY 24-25 2 Strategic Workplan FY 24-25
Core Focus Project Dept Team Lead(s) Project Status Summary Timeline (Deliverables Over Next 6 Months) Top Workplace Culture Recruitement & Retention M&A J.Toney, A.Brown, HR, Policy Ad Hoc In Progress
In February 2024, the Malibu City Council adopted the
Winter Closure as a permanent policy. The staff and
Policy Ad Hoc committee have completed a draft of the
Code of Conduct, which is scheduled for presentation on October 14, 2024. Meanwhile, staff continues to assess
and refine employee recruitment and retention
strategies, focusing on enhancing health and wellness
benefits, as well as providing training and leadership
development opportunities.

Recruitment system onboarding module by March
2025
Recruitment Campaign updates (recruitment video,
revamped flyers, fairs, etc.) by March 2025
Preservation of Malibu's Rural
Character School District Separation M&A
S.McClary, A.Brown,
School Separation
Ad Hoc
Near Completion
The City of Malibu is actively working with the Santa
Monica-Malibu Unified School District (SMMUSD) to
finalize a separation package that includes a Revenue
Sharing Agreement, Operations Agreement, and Joint
Powers Authority (JPA) Agreement. These agreements
outline how resources and services will be shared or
divided between the two districts. The SMMUSD Board
is scheduled to vote on the package on October 24th,
and the City will adopt it shortly after. The separation package, along with the City’s 2017 petition, will be
presented to the County Committee in November. If
approved, the petition will advance to the State Board
of Education for final review.

Completion of the Separation Package
Finalize the separation package, which includes the
Revenue Sharing Agreement, Operations
Agreement, and Joint Powers Authority (JPA)
Agreement.

SMMUSD Board Vote (October 24th)
SMMUSD will hold a public vote to approve the
finalized separation package.

City Council Adoption
The Malibu City Council will formally adopt the
separation package, aligning with SMMUSD’s
approval.

County Committee (November)
The City and SMMUSD will jointly present the
separation package, along with Malibu’s 2017
petition, to the County Committee for review. Two
hearings will be scheduled to hear the City's petition
on Separation; one in Malibu and the other in Santa
Monica. Should the County Committee approve the
petition for separation, the City's petition will
advance to be heard by the State Board of
Education.

1 3
Strategic Workplan FY 24-25
Core Focus Project Dept Team Lead(s) Project Status Summary Timeline (Deliverables Over Next 6 Months) Preservation of Malibu's Rural
Character Malibu Community Lands M&A/PL/ESD/PW A.Brown Near Completion The City Council awarded a contract to Tripepi Smith on February 12, 2024, to lead community outreach and
engagement for the master planning of five city-owned
parcels. Phase 1 (April-June) has been completed, and
Phase 2 is taking place from August to September, with
one final community meeting scheduled for September
17, followed by a second survey. Alongside this, the City has conducted a technical review to evaluate
environmental restrictions and assess the feasibility of potential developers on each property. The outcomes
report will be presented at a special City Council work session the week of October 21, and for formal action at the October 28 meeting.

Conduct the final community meeting on September
17, 2024, and distribute the second survey.
(October) Present the outcomes report, including
community feedback and technical review findings,
at the City Council work session the week of October

21. Bring the report before the Council for action at the regular meeting on October 28, 2024.

Pending Council direction, prepare to issue RFPs for
Master Planning & Design services for the cityowned parcels, as applicable. (Ongoing) Continue engaging the community
throughout the planning and design phases.

Effective & Efficient Government Housing Element PL M.Tamuri Near Completion The City has met the milestones laid out in the Housing Element Stipulated Judgment. The City’s revised 6th
Cycle Housing Element was submitted to the California
Department of Housing and Community Development
(HCD) on October 4, 2024. On October 17, the Local
Coastal Program (LCP) amendments (Ordinance 523 and
Resolution No. 24-49) were transmitted to the California Coastal Commission (CCC) for its certification review. On October 18, 2024, an executed copy of Ordinance 523
approving the Malibu Municipal Code (MMC) and Local
Coastal Program (LCP) amendments was submitted to
HCD along with proof that the LCP amendments were
submitted to the CCC. In addition, these documents
were transmitted to the HCD legal team and the State
Attorney General. City staff anticipates receiving the
certification letter from HCD as it previously found that the draft housing element met the statutory
requirements of State Housing Element Law.

Next Steps: October 18 – Submit the Local Coastal
Program amendment to the Coastal Commission;
work with Commission staff to ensure the
amendment is complete for processing.

November 2024 - Develop a work plan to implement
the Housing Programs contained in the Housing
Element.

Begin work on implementing the work plan
including, processing the remaining required code
amendments, creating a housing resources web
page, and developing informational handouts
regarding fair housing
2 4
Strategic Workplan FY 24-25
Core Focus Project Dept Team Lead(s) Project Status Summary Timeline (Deliverables Over Next 6 Months) Effective & Efficient Government Development Services Report (Baker Tilly) Implementation M&A/PL/ESD/PW J.Toney In Progress Summary memo provided to Council on December 11,
2023. New Queue Management System for front
Counter implemented beginning of January 2024,
helping with organization and in-person flow. All 46
recommendations in various stages.

ESD, PL, and PW: Continue to coordinate with CM office.

Creation of Community Development Department -
return to Council with Director Job Description,
Department Org Chart, and Business plan by
December 2024.

Effective & Efficient Government
Development Services
Software (Blue Beam and Land
Management System)
M&A/PL/ESD/PW J.Toney In Progress
ESD, PL, and PW: Continue to coordinate with CM office.

Departments have been updating the digital document
submittal software to replace the existing method.

Land Management System - negotiate contract with
vendor to acquire system and project prep by
December 2024.

Preservation of Malibu's Rural
Character
Permanent Skate Park
(Construction) CS/PW K.Riesgo In Progress
The Environmental Review Board analyzed the Final EIR
Addendum No.3 in October 2023. In November 2023,
the Planning Commission reviewed the final design,
certified Addendum No. 3 of the Final EIR, and approved Coastal Development Permit No. 23-001 to construct
the 12,500 square foot Skatepark and associated
development. In December 2023, a project appeal was
filed. In January 2024 Council approved California
Skateparks Addendum No. 3 to fund design and
engineering for the irrigation restroom facility. February 2024 Council reviewed the appeal and approved the
settlement agreement. The settlement agreement
included a 90-day appeal period which ended in June
2024. Staff worked with the skatepark designer,
California Skateparks, to finalize the park design
implementing the changes outlined in the settlement
agreement.

Project is anticiapted to send out for construction
bidding by January 2025. Construction will proceed
during the Spring of 2025.
3 5
Strategic Workplan FY 24-25
Core Focus Project Dept Team Lead(s) Project Status Summary Timeline (Deliverables Over Next 6 Months) Environmental Stewardship Coastal Vulnerability
Assessment
ESD Y.Bundy In Progress
Phase 1 of the Assessment project concluded on
November 16, 2023, with both in-person and virtual
public workshops presenting sea level rise scenarios for Malibu’s coast. A robust outreach campaign in OctoberNovember 2023 included over 3,000 postcards, 800 emails, 332 calls, meetings with stakeholders, and
various media efforts. The project has now entered
Phase 2, with follow-up meetings and beach site visits
during the King Tide for feedback. A second workshop is set for February 15, 2024, at City Hall to review findings, discuss survey results, and regulations. The project is on track to meet deadlines with continued outreach.

In person and virtual workshops were held (April 18
and 30) to summarize technical findings, present
survey results, discuss regulations, and understand
the community's desired direction. Currently, a 2nd
public survey is open to gather further community
input on this project. This will conclude the technical assessment and a date will be set for Council
presentation.

Environmental Stewardship Geotechnical and Coastal
Engineering Guidelines ESD Y.Bundy Near Completion
Staff continues to work with the City’s geotechnical
consulting firm to update the existing Geotechnical
Guidelines. Draft guidelines are under review internally.

Due to the continued effort to prioritize Woolsey Fire
rebuilds, including fire rebuild revisions that are under construction, and the expected increase of incoming
projects into the Building Division from the Planning
Department, ESD has implemented new deadlines for
this project.

Staff redirected priorities due to ongoing efforts of
landslides and departures of upper level
management staff. Staff is now expecting this to be
completed in the 1st quarter of 2025.

Effective & Efficient Government Information & Technology Strategic Plan Implementation All J.Toney In Progress
Council Awarded (October 23, 2023) the agreement to
SDI., to conduct the Assessment and Strategic Plan. Kickoff at beginning of December.

November 2023 - April 2024 consultant researched,
investigated, and interviewed to prepare a complete IT
strategic plan.

August 2024 - conducted a "Blue wall" session to
prioritize the projects over a 5 year timeline.

Adopt IS Strategic and Cybersecurity Plan by
December 2024.

Identified projects will be ongoing.
4 6
Strategic Workplan FY 24-25
Core Focus Project Dept Team Lead(s) Project Status Summary Timeline (Deliverables Over Next 6 Months) Preservation of Malibu's Rural
Character
Malibu Community Labor
Exchange Permanent Office M&A/PL/ESD/PW A.Brown In Progress Plans for the permanent Malibu Community Labor
Exchange (MCLE) office are over 90% complete. On
August 12, the City Council approved the Wastewater
Allocation Policy to enable utility services at the project site. The Environmental Sustainability Department (ESD) and Planning are ensuring that the office design
complies with the Local Coastal Program (LCP) and
handling necessary plan checks and permits.

Additionally, Santa Monica College and LA County have
completed the design for the undergrounding of
September - October 2024: Finalize the office
design, incorporating all programmatic needs and
ensuring compliance with the Local Coastal Program
(LCP):

November 2024: Submit Final Design and
Construction Package to CDBG for Review.

December 2024: Finalize construction documents
and prepare to issue the project for bid on
December 1, 2024.

January 2025: Award the construction contract
Effective & Efficient Government Civic Center Water Treatment Facility Phase 2 PW R.Duboux In Progress
PW: Staff met with the Regional Board to address how a
recent Cultural Resource discovery will impact the
project. The Regional Board agreed to modify Phase 2
boundaries to exclude affected properties. Staff is
working on these changes to keep the project moving.

ESD: Coordinating with PW and provided OWTS tracking
for Serra Retreat.

PLN: Coordinating with PW. An Addendum to the Final
EIR and a CDP hearing are needed.
8/30/24 (PW): City Council received an update on Phase
2, with plans to shift Serra Retreat to Phase 3 and move Malibu Road properties to Phase 2. The MOU is
expected to be updated by year-end.

The Regional Board has scheduled the amendment
to the MOU in November 2024. The City will
proceed with approving the MOU amendment by
Feburary 2025. The project's redesign will proceed
after the City approves the MOU amendment.

Public Safety PCH Signal Synchronization
Project
PW R.Duboux Near Completion
Project is proceeding per plan without any issues.
8/30/24 (PW) - The conduit from Topanga Canyon Road
to John Tyler is almost complete. The next phase of the project includes the installation of the new traffic signal poles and the signal controllers.

It is anticipated that the majority of the
infrastruction portion of the project will be
completed by the end of December 2024.

Public Safety
PCH Las Flores and Ramla
Pacifica Intersection
Improvements
PW R.Duboux Started
This project, identified on the 2015 PCH Safety Study,
will evaluate the existing intersections and construct
new intersection improvement intended to improve
safety.

A Request for Qualification for design services has
been issued. It is anticipated that the selection of
the design consultant and the approval of the design
agreement will be completed within the next 6
months.
5 7
Strategic Workplan FY 24-25
Core Focus Project Dept Team Lead(s) Project Status Summary Timeline (Deliverables Over Next 6 Months) Public Safety PCH Safety M&A/PW/PS A.Brown, S.Duenas,
R.Duboux In Progress
Speed Camera Implementation: The City has launched
an RFP to develop a Speed Safety System Use Policy and
Impact Report. Speed cameras will be installed at five
high-risk locations along PCH, with full implementation by November 2025.

Grant-Funded Operations: The City secured a $460,000
Office of Traffic Safety grant to fund four DUI
checkpoints, eight saturation patrols, and the "MalibuSurf.Sand.Slow" education campaign to promote safer driving habits.

PCH Median Improvements: Completed from John Tyler
Drive to Puerco Canyon Road to enhance safety.

Traffic Signal Synchronization: Fiber optic lines are
being installed, and additional safety features are being added to improve signal timing and reduce speeding.

Completion by year-end.

Intersection and Pedestrian Enhancements: Upcoming
safety projects include crosswalk and intersection
improvements at various locations on PCH.

October 2024
Issue RFP for Speed Safety System Use Policy and
Impact Report
Continue PCH Traffic Signal Synchronization project
November 2024
Select and contract consultants for the Speed Safety
System Use Policy and Impact Report
First DUI checkpoint and saturation patrol
December 2024
Consultants begin drafting Speed Safety Use Policy
and Impact Report
Continue PCH intersection and pedestrian safety
improvements
January 2025
Prepare for public review of the Speed Safety Use
Policy and Impact Report
Complete Traffic Signal Synchronization project
February 2025
Begin 30-day public review of Speed Safety Use
Policy and Impact Report
March 2025
Council adoption of the Speed Safety Use Policy and
Impact Report

Public Safety Permanent Impound Yard PS S.Duenas Started Establish a location for a year-round, day-use impound
site to facilitate towing vehicles that pose public safety hazards.
12/31/24 - Schedule agenda item for the City
Council to discuss options.

Preservation of Malibu's Rural
Character
Permanent Snack Shack -
Malibu Bluff's Park CS K.Riesgo Started
This project includes the construction of a new 2,000 - 2,200 SF pre-fabricated structure at Bluffs Park to
accommodate a new food/kitchen area, storage area
and restroom facilities.

Design contract will be sent to City Council in
November. A project kick off meeting and schedule
will be developed that includes a pre-fabricated
structure.

Fiscal Sustainability Fund Balance Reserve Policy M&A J.Toney Started Discuss options with A&F by December 2024. 6 8
Strategic Workplan FY 24-25
Core Focus Project Dept Team Lead(s) Project Status Summary Timeline (Deliverables Over Next 6 Months) Public Safety Public Safety Projects PS/PW S.Duenas, R.Duboux In Progress Automatic License Plate Reader (ALPR) Cameras: Staff
is working with Public Works to obtain encroachment
permits from CalTrans and install poles on PCH for the
cameras.KBUU Antenna: Staff is working with Public
Works to install a pole for the
KBUU Antenna. A design plan has been submitted to
Planning to determine next steps.

Sheriff's Substation: No update at this time. Staffing
shortages and the tower are still cited as obstacles.

ALPR cameras will be installed by November 2024
KBUU Antenna: It is anticipated that the project's
CDP will be approved. If this occurs within this time
period, staff will send this projet out for
construction bidding.
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Agenda Item # 7.A.

Council Agenda Report
To: Mayor Stewart and the Honorable Members of the City Council Prepared by: Kristin Riesgo, Community Services Director Approved by: Steve McClary, City Manager
Date prepared: October 8, 2024 Meeting date: October 28, 2024 Subject: Malibu Film Society Update and Fee Waiver Request RECOMMENDED ACTION: 1) Receive a report on the outcomes of the Malibu Film Society film series at City Hall; and 2) Consider whether to approve the Malibu Film Society request to conduct five film screenings with a fee waiver from January to June 2025.

FISCAL IMPACT: Waiving the facility use and staffing fees will result in a loss of revenue of $5,555, for FY 2024-25, in Account Numbers 100-0000-3461-00 (Municipal Facility Use Fees), 103-0000-3505-04 (City Hall Theater Rentals), and 103-0000-3505-05 (City Hall Event Rentals). Facility rentals generate revenue for the City, and waiving these associated fees limits potential revenue.

Funding for an audio-visual consultant and security contractor was not included in the Adopted Budget for FY 2024-25, requiring an expense of $3,400 in Account Number 100- 4001-5107-00 (General Recreation – Contract Personnel).

STRATEGIC PRIORITY: This item is part of the day-to-day operations identified in the Adopted FY 2023-24 Strategic Priority Project List. Staff continue to work on ongoing projects and normal business while the FY 2024-25 Strategic Priority Plan is finalized.

DISCUSSION: On June 10, 2024, Council approved a request from the Malibu Film Society (MFS) to have three film screenings at Malibu City Hall Theater/Council Chambers, waiving all facility use and staffing fees.

The MFS events occurred from July to September 2024 and included a 30-minute preshow reception with concessions, a film screening, and a post film question-and-answer session (Q&A). Concessions had free snacks, beverages, and wine for anyone 21 and older. To meet the City’s requirement for alcohol service, a security guard was onsite for City Council Meeting
10-28-24
Item

7.A.
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Agenda Item # 7.A.
the duration of the event. Staff time was also dedicated to disassemble and assemble the dais so MFS could hold a Q&A on the stage. The media team posted details about the MFS events on social media, the City’s website, and in the City Manager Update. The number of staff hours dedicated to each event was 18 (54 hours for the total series).

As part of the Agreement with MFS, 50 tickets were dedicated to Malibu residents. MFS recorded the following attendance at each event:
2024 Dates Total Attendees City Tickets Claimed (50)
July 17 60 40
August 15 100 45
September 24 75 35
The facility rental, staffing, and contractor fees associated with the three events included:

Type Non-Profit Rate
Facility Use $1,425
City Staffing (pre/post event) $576
City Staffing (event day) $1,332
Security Guard $816
Total $4,149
Due to the success of the film screenings, MFS has requested Council’s support to continue events at City Hall. MFS proposed the same event format with a pre-show reception, film screening, and Q&A discussion. Staff worked with MFS to determine mutually convenient dates to hold five film screenings from January through June 2025.

One adjustment to the request from MFS is to include weekend screenings to gain higher attendance. Due to staff availability, the City would need to hire an audiovisual consultant to provide technical assistance for all the events to accommodate this request. Staffing from the Community Services Department would include one full-time employee and two part-time employees (3 total) at all events.

The total cost to conduct the proposed five additional MFS screenings with facility rental, City staffing, and contractors include,
Type Non-Profit Rate
Facility Use $2,375
City Staffing (event day) $2,220
City Staffing (pre/post event) $960
Audio Visual Contractor $2,000
Security Guard $1,400
Total $8,955
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Agenda Item # 7.A.

MFS has reported that over 170 residents have signed up for the free locals’ membership program, which was implemented in July 2024. The organization will continue to offer 50 free tickets for residents for the upcoming series, if approved by Council.

ATTACHMENTS: 1) Malibu Film Society Correspondence September 22, 2024 2) Malibu Film Society Financial Statement

3 1
City Council
From: Scott Tallal
Sent: Sunday, September 22, 2024 3:28 PM
To: City Council
Subject: Public comment for the 9/23/24 Council meeting Hi everyone,
Not counting all of the locals who are already members of Malibu Film Society, more than 170 residents have now signed up for free locals’ membership program we were able to implement with your support. The final event of our special event series at City Hall will be held this Tuesday, 9/24 – and so far, 71 people have registered to attend.

Almost 100 attended our last event (Malibu-based producer/screenwriter/author David Weddle); many of them commented afterwards how great it’s been to have these events – asking whether we’ll be able to continue. If that’s something you’d be willing to consider, the MFS board has already voted to continue picking up our own internal costs – so we urge you to bring this up during Council comments with an eye towards getting the issue on a future agenda.

We don’t have any particular timetable in mind, so once again we leave that up to you and City staff. But now that the summer crowds are finally starting to dwindle, we’d love to see if we could find one or more weekend dates as those always generate the highest turnout.

As for programming, Mr. Weddle has already confirmed his willingness to host another filmmaker showcase – this time, focusing on Laurel & Hardy. We’re also thinking about an evening with Malibu-based Michael Connelly (the producer of multiple TV series and the author of 39 best-selling novels), so there are plenty of opportunities out there for us to pursue.

Bottom line: public response to this has been terrific, so with your support we’d love to keep the series going! Best regards,
Scott
4 ATTACHMENT 1
7/1/2023-
Category Description 6/30/2024
INCOME
Donations - Board 3,000.00
Donations - Other 2,260.32
Membership Sales 22,331.14
Oscar Tickets 11,625.00
Sponsor Sales 4,725.00
Ticket Sales 4,640.00
TOTAL INCOME 48,581.46

EXPENSES
Advertising 2,330.00
Bank Charge 952.59
Catering 7,448.40
Concession Supplies 1,552.22
Concessions Management (Scott Hillman) 6,425.00
Equipment Maintenance (Scott Tallal) 3,600.00
Equipment Purchase 998.74
Equipment Rental 1,400.00
Event Management Fee (Scott Tallal) 1,200.00
Gifts Given 100.00
Insurance 756.00
Marketing 40.00
Meals 244.90
Office Supplies 114.06
Party Rental 1,479.60
Party Supplies 385.69
Q&A Production (Angel Burns) 1,400.00
Q&A Production (Scott Hillman) 1,200.00
Rent 5,937.97
Social Media Management (Arianna Kenig) 1,260.00
Subcontractors 4,234.34
Tax 25.00
Utilities 1,863.59
Website Coding (Scott Hillman) 1,150.00
TOTAL EXPENSES 46,098.10
OVERALL TOTAL 2,483.36
Income/Expense
7/1/2023 Through 6/30/2024
10/1/2024 Page 1
5 ATTACHMENT 2

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Agenda Item # 7.B.

Council Agenda Report
To: Mayor Stewart and the Honorable Members of the City Council Prepared by: Kristin Riesgo, Community Services Director Approved by: Steve McClary, City Manager
Date prepared: October 7, 2024 Meeting date: October 28, 2024 Subject: Veterans Day Recognition Ceremony Fee Waiver
RECOMMENDED ACTION: Consider whether to approve a request from The Malibu Navy League to waive the facility use and staffing fees and incur event costs for the Veterans Day Recognition Ceremony.

FISCAL IMPACT: Waiving the facility use and staffing fees will result in a loss of revenue of $4,258 for FY 2024-25 in Account Numbers 100-0000-3461-00 (Municipal Facility Use Fees), 103-0000-3505-04 (City Hall Theater Rentals), and 103-0000-3505- 05 (City Hall Event Rentals). Facility rentals generate revenue for the City, and waiving the associated fees limits potential revenue.

Funding for an event insurance, filming consultant, and audio-visual consultant was not included in the Adopted Budget for FY 2024-25, requiring an expense of $2,872 in Account Number 100-4001-5107-00 (General Recreation – Contract Personnel).

DISCUSSION: The Malibu Navy League (Navy League) plans to coordinate the annual Veterans Day Recognition Ceremony on Monday, November 11, 2024, at Malibu City Hall, to celebrate and recognize Malibu Veterans.

The Navy League requested a 100% fee waiver for the facility rental and staffing costs.

In addition, they are requesting the City to incur the costs for audio visual (AV) personnel, filming personnel, and the event insurance.

City Council Meeting
10-28-24
Item

7.B.
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Agenda Item # 7.B.

Community Services Department staff will supervise and monitor the facility and assist with set-up and clean-up. Due to limited staff availability on an observed holiday, an AV consultant will be hired to provide technical assistance for the live performances and film the event. The event footage will be posted on the City’s YouTube channel and previewed on City TV3.

The facility rental and staffing fees associated with the event include:

Type Non-Profit Holiday Rate*
Facility Rental $2,494
City Staffing $1,764
Total $4,258
*holiday rate, fees doubled
The event costs include:

Type Rate
Insurance $122
Filming Consultant $750
AV Consultant $2,000
Total $2,872
In 2019, the Council approved a fee waiver of $4,400 requested by the Veterans Day Organization Committee. In 2023, the Navy League coordinated the annual event, and Council approved a $3,108 fee waiver and incurred event costs of $2,087 ($5,195 total).

Increased costs in 2024 are higher insurance limits and the filming consultant ($7,130 total).

ATTACHMENTS: Navy League Financial Documents
2 Malibu Council United States Navy League Income Expenses 2023 INCOME
Income Incl. Donor Support
Amazon Smile 39.29
Langley for 501(c)(3) 3,957.64
Membership Dues Received 0.00
Membership NLUS Rebate Council Portion 900.48
Misc Income 750.00
T4T Donations 646.00
Veteran's Day Donations 2,000.00
TOTAL Income Incl. Donor Support 8,293.41
TOTAL INCOME 8,293.41

EXPENSES
Expenses & MNL Support
Administrative Expense
Bank Charge 5.00
Meeting Expense 0.00
PO Box Rental 230.00
TOTAL Administrative Expense 235.00
Fees 50.00
Langley Divn. (Sea Cadets) 4,957.64
Membership Dues sent to NLUS 0.00
NROTC UCLA 250.00
T4T 250.00
Veteran's Day Expenses 1,705.03
TOTAL Expenses & MNL Support 7,447.67
TOTAL EXPENSES 7,447.67
OVERALL TOTAL 845.74
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Agenda Item # 7.C.

Council Agenda Report
To: Mayor Stewart and the Honorable Members of the City Council Prepared by: Kristin Riesgo, Community Services Director Approved by: Steve McClary, City Manager
Date prepared: October 14, 2024 Meeting date: October 28, 2024 Subject: Road Race Agreement
RECOMMENDED ACTION: At the recommendation of the Road Race Ad Hoc Committee, approve the Road Race Agreement with Zuma Foundation Inc.

FISCAL IMPACT: There is no fiscal impact associated with the recommended action.

DISCUSSION: On December 11, 2012, Council adopted City Council Policy #47 - Road Race Policy (Attachment 1). In accordance with the Road Race Policy, the City may grant a maximum of two temporary use permits (TUP) for marathons, triathlons, and cycling events per calendar year.

On August 28, 2023, Council approved opening a Road Race Request for Proposals (RFP). Staff worked with the Road Race Ad Hoc (Ad Hoc) to compile the RFP documents, conduct interviews, and provide a recommendation for Council consideration. On January 8, 2024, Council awarded the two allowable Road Race TUPs to Malibu Moves and Zuma Foundation Inc. for a five-year term.

In early 2024, both organizations returned to the Council requesting insurance adjustments to their Agreement, which Council approved. On May 28, 2024, Zuma Foundation Inc. returned to Council with a request to postpone their 2024 race event following a safety assessment of the Zuma Beach tunnel, construction on Pacific Coast Highway near Trancas Canyon Road, and data related to vehicle and bike accidents at or near the racecourse. Following a review and discussion on the postponement, Council City Council Meeting
10-28-24
Item

7.C.
1

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Agenda Item # 7.C.
decided not to execute the Agreement with Zuma Foundation Inc. and directed staff to reopen the Road Race RFP for the second allowable race event and directed the Road Race Ad Hoc Committee to review the proposals.

The Road Race RFP was issued on June 24, 2024, and the City received five proposals by the July 22, 2024 deadline. The Ad Hoc reviewed the proposals and interviewed three race organizations. The evaluation process examined the organization’s experience in addition to community benefits and involvement, road race impacts, registration data, proposed street closures, and financial documentation.

Following a thorough evaluation and screening process, the Ad Hoc has recommended the City award the Road Race TUP to Zuma Foundation Inc.

The Ad Hoc wanted to ensure there were two different race options for the community.

Zuma Foundation Inc. will offer a triathlon event, while the already approved Malibu Moves will provide a half marathon. Zuma Foundation adjusted its proposal compared to its first RFP submission, including,
• Annual donations will increase 10% annually, beginning with $50,000 in 2025 • The Boys and Girls Club of Malibu will share production responsibilities and be the primary charity beneficiary
• Added Challenged Athletes Foundation (CAF) as a secondary charity beneficiary • Added Kasey Earnest, Boys and Girls Club of Malibu, as a new Zuma Foundation Inc. board member
• Zuma Foundation Inc. created a Triathlon Safety Committee with key stakeholders, including Captain Jennifer Seetoo and Public Safety Commissioner Chris Frost
• Zuma Foundation Inc. designed an alternative racecourse that could be utilized if the Zuma Beach tunnel were closed
Zuma Foundation Inc. is committed to minimizing road closures and community impacts.

The organization will incorporate running programs with local organizations and develop athletic events to expand health and wellness in Malibu. For example, the organization will incorporate a variety of programs into the triathlon event, such as resident discounts, offering a high school division, and a triathlon for kids.

Zuma Foundation Inc. has agreed to work with City staff and submit all required documents, permits, and referrals as part of the race requirements listed in City Council Policy #47 Road Race Policy and Road Race Agreement.

ATTACHMENTS: 1) Road Race Agreement with Zuma Foundation Inc. 2) City Council Policy #47 – Road Race Policy
2 AGREEMENT BETWEEN THE CITY OF MALIBU
AND ZUMA FOUNDATION INC.

This Agreement is made and entered into as of , by and between the City of Malibu (hereinafter referred to as the "City"), and Zuma Foundation Inc. (hereinafter referred to as “Zuma Foundation”).

The City and Zuma Foundation agree as follows:

R E C I T A L S
A. The City desires to provide recreational events that are of interest and benefit to the residents of the City.

B. Zuma Foundation produces and conducts running events and triathlons.

C. Zuma Foundation warrants to the City that it has the qualifications, experience, and facilities to perform properly and timely the services under this Agreement.

D. The City and Zuma Foundation have agreed that Zuma Foundation shall produce and conduct a Triathlon race event (as defined herein) within Malibu city limits and outlying areas pursuant to the terms and conditions set forth in Exhibit A of this Agreement.

NOW, THEREFORE, the City and Zuma Foundation agree as follows:

1.0 INTRODUCTORY TERMS.

1.1 Recitals. The statements contained in the recitals set forth above ("Recitals") are true and correct, and the Recitals are by this reference made a part of this Agreement.

1.2 Exhibits. The exhibits which are attached to this Agreement are by this reference made a part of this Agreement.

1.3 Abbreviations and Definitions. The following abbreviations and definitions will be used for purposes of this Agreement:

1.3.1 The abbreviations of the Parties set forth in the Preamble will be used for purposes of this Agreement.

1.3.2 "Additional City Services" means the following services coordinated and paid by Zuma Foundation for the Triathlon race event, as required by the City Temporary Use Permit, including: (1) law enforcement and fire protection; (2) garbage and refuse disposal; (3) crowd control and traffic control; (4) utilities; and (5) any additional services the City deems appropriate in its sole and absolute discretion.

1.3.3 "City Permit and Use Fees" means the fees and charges imposed by the City in connection with the issuance of permits and the fees and charges imposed by the Attachment 1
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City in connection with Zuma Foundation’s Triathlon race event (as defined herein).

1.3.4 "Concessions" means all concessions associated with the Triathlon race event as defined herein) offered or provided for a fee within the Race Facilities and during the Race Period, including, without limitation: (1) alcoholic and non-alcoholic beverages; (2) wearing apparel; (3) programs; (4) souvenirs; (5) seating; and (6) all other merchandise or services offered for sale in connection with the Triathlon race event and during the Triathlon race event period.

1.3.5 "Laws" means all existing and future federal, state, and local constitutions, statutes, ordinances, rules, regulations, and resolutions, and all orders and decrees of lawful authorities having jurisdiction over the matter at issue.

1.3.6 "Race Course" means the staging and routes used by Zuma Foundation for the Triathlon race event as approved through the City Temporary Use Permit Application Process.

1.3.7 "Triathlon Race Event" means Zuma Foundation’s athletic racing event consisting of swimming, biking, and running a race of designated distances to be held on:

Year Race Dates
2025 September 13-14
2026 September 19-20
2027 September 18-19
2028 September 16-17
Set-up begins five (5) days preceding the Triathlon race event date. All equipment and materials will be removed the day after the race ends.

1.3.8 "Race Facilities" means those lands, improvements, buildings, public or other rights of way, or property, owned, leased to, or controlled by the City or under City authority used by Zuma Foundation for the purpose of staging the Triathlon race event.

1.3.9 "Race Period" means from 7:00 AM on the Monday preceding the Triathlon race event until 5:30 PM on the Monday following the Triathlon race event.

1.3.10 "Ticket Sale Rights" means the right to sell tickets and otherwise charge for admission to, or for participation in, the Triathlon race event, and to sell tickets and otherwise charge for admission to, or for the use of Race Facilities in connection with Triathlon race event, excluding the right to sell tickets to the general public that are solely for parking.

2.0 TERM OF AGREEMENT. This Agreement will become effective on November 1, 2024, and will remain in effect for a period of four (4) years from said date unless otherwise expressly extended and agreed to by both parties or terminated by either party as provided herein.

3.0 CITY AGENT. The City Manager, or their designee, for the purposes of this 4 Agreement between the
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Agreement, is the agent for the City; whenever approval or authorization is required, Zuma Foundation understands that the City Manager, or their designee, has the authority to provide that approval or authorization.

4.0 WARRANTIES AND REPRESENTATIONS

4.1 Warranties and Representations by Zuma Foundation. Zuma Foundation warrants and represents to the City as follows:

4.1.1 Zuma Foundation is a non-profit corporation duly formed, presently existing, and in good standing under the laws of the State of California.

4.1.2 All appropriate action exists or has been accomplished by Zuma Foundation so as to duly authorize the officers set forth below to execute this Agreement and all documents contemplated hereby on behalf of Zuma Foundation so as to fully and firmly bind Zuma Foundation to the terms and provisions of this Agreement and such other documents.

4.1.3 Zuma Foundation has the financial capability to and shall conduct a Triathlon race event in accordance with this Agreement.

4.2 Warranties and Representations by City. The City warrants and represents to Zuma Foundation as follows:

4.2.1 The City is a municipality organized and existing under the laws of the State of California.

4.2.2 All appropriate action exists or has been accomplished by the City so as to duly authorize the officials set forth below to execute this Agreement and all documents contemplated hereby on behalf of the City so as to fully and firmly bind the City to the terms and provisions of this Agreement and such other documents.

5.0 SCHEDULING AND CONDUCTING A TRIATHLON RACE
EVENT

5.1 Obligation to Conduct a Triathlon Race Event. Zuma Foundation shall produce and conduct a Triathlon race event on Saturday and Sunday, commencing in the year 2025, said dates will be determined by Zuma Foundation no later than March 1 of each year and will be on the dates set forth in Exhibit B or within two weeks of such dates, excluding Labor Day weekends. Zuma Foundation shall provide the City with written notice in the form of a City Temporary Use Permit Application no later than ninety (90) days prior to the first day of the Triathlon race event Period.

5.2 Triathlon Race Event. The Triathlon race event shall be conducted on the Triathlon Course on Saturday and Sunday during the Triathlon race event period and shall be held during daylight hours only. The Triathlon race event shall be conducted in accordance with the terms and conditions of this Agreement, the City's Road Race Policy and all necessary governmental permits and/or approvals.
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5.3 Set-Up, Operation and Dismantling Periods. Zuma Foundation shall have the use of the Triathlon Facilities during the Triathlon race event Period for purposes of setup of the facilities and apparatus associated with the Triathlon race event provided, however, that access to the Triathlon Race Course will only be restricted during the time necessary to conduct the Triathlon race event. It is anticipated that all facilities and apparatus associated with the Triathlon race event will be set up and dismantled during the Race Period. In the event Zuma Foundation requires additional time to dismantle the facilities and apparatus following the Triathlon race event, Zuma Foundation shall be permitted such additional time beyond the Race Period, so long as Zuma Foundation has commenced the dismantling during the Race Period and continues to proceed in a diligent manner to complete the dismantling. Zuma Foundation shall provide the City with a schedule indicating the dates and location of setup and dismantling of the facilities and apparatus associated with the Triathlon race event, along with updates and changes thereto, as soon as is reasonably possible after the necessity for such updates and changes become known to Zuma Foundation.

5.4 Clean-up and Restoration. Zuma Foundation shall be responsible for cleaning up the Race Course and Race Facilities at the end of the Triathlon race event. Such clean-up shall include, without limitation, removal of litter and debris from City streets and the Race Facilities.

5.5 Conditions of Race Facilities. Zuma Foundation shall be responsible for promptly returning the Race Facilities to the condition they were in immediately prior to the Triathlon race event, reasonable wear and tear excepted. Zuma Foundation shall be responsible for repairing any damage to the Race Facilities occurring during the Triathlon race event by acts or omissions of Zuma Foundation, its patrons or concessionaires.

5.6 Additional Municipal Services. Zuma Foundation shall be responsible for the scheduling of and payment for all additional municipal services, as required by the City Temporary Use Permit. In certain circumstances, the City may facilitate the payment for additional municipal services to other federal, state or local governmental agencies. The City’s role in these payments shall only be administrative only (i.e., processing and ensuring the accuracy of the payments) and in no way constitutes the City’s agreement or sign-off on any other services, plans or arrangements provided by other agencies. Thus, the City shall accept no other responsibility other than facilitating the payment and shall have no liability whatsoever from any claims related to Zuma Foundation and additional municipal services. Zuma Foundation shall pay the estimated costs and expenses for additional municipal services no later than sixty (60) days prior to the Triathlon race event. Zuma Foundation shall pay any remaining costs for additional municipal services no later than sixty (60) days following the Triathlon race event.

5.7 Compliance with Laws and Related Matters. Zuma Foundation, its officers, employees, volunteers, agents, and concessionaires shall comply with all applicable Laws throughout the Term of this Agreement.

5.8 Liability for Expenses. Under no circumstances shall the City be liable for any costs or expenses incurred by Zuma Foundation in any way related to or connected 6 Agreement between the
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with the Triathlon race event unless specifically provided for in this Agreement.

5.9 Authorizations. Zuma Foundation shall be responsible for seeking and obtaining any and all permits, licenses, certifications, consents, or other authorizations required from any governmental agency or other public or private entity in order to hold the Triathlon race event and perform all other activities in connection therewith.

5.10 Red Flag Warning. In the event of a “Red Flag Warning” condition as determined by the Los Angeles County Fire Department or other relevant entity which such entity determines, in writing, that conducting the race will be unsafe, Zuma Foundation shall either:
(i) cancel the Triathlon race event or (ii) postpone any race event on the affected days. In the event of postponement, Zuma Foundation shall obtain written authorization from the City, which shall not be unreasonably withheld, to conduct the race event on other days outside of the days listed above. The Parties shall use best efforts to reschedule the Triathlon Race Event such that it does not impact other events in the City or negatively impact the public health and safety of the City or its residents and visitors.

5.11 Public Safety. If Zuma Foundation, in consultation with the City, determines that conducting a Triathlon Race Event on any of the designated days for a particular year would create an unreasonable risk of harm, the Parties shall use best efforts to reschedule the Triathlon Race Event such that it does not impact other events in the City or negatively impact the public health and safety of the City or its residents and visitors.

6.0 GENERAL TERMS.

6.1 Right to Conduct Triathlon race event. The City hereby grants Zuma Foundation the right to produce and conduct a Triathlon race event in accordance with the terms and conditions of this Agreement and City Council Policy No. 47 (Road Race Policy). Zuma Foundation is responsible for applying for and securing all applicable governmental approvals/permits in a timely manner, prior to conducting any portion of the Triathlon race event or performing any setup activity related to the Triathlon race event and complying with the City's Road Race Policy. The City and Zuma Foundation agree that the Triathlon race event is one of the two road race events which are entitled to seek a City Temporary Use Permit each calendar year as set forth in the City's Road Race Policy. All discretionary authority of the City with respect to any and all such permits and/or approvals is expressly retained and nothing in this Agreement shall be construed as limiting or expanding the City's discretionary authority in any way, or committing the City to any particular decision or outcome, with respect to any requisite permits or approvals.

The City's denial of any discretionary permit necessary to conduct the Triathlon race event shall not be deemed a breach of this Agreement, so long as such denial complies with applicable law and regulation. Zuma Foundation hereby acknowledges that the City has police powers pursuant to applicable Laws to take reasonable and appropriate action in the event the conduct of the Triathlon race event, or any portion thereof or activity associated therewith, is endangering the health, safety or welfare of the general public, is violating any applicable law or regulation, or is otherwise creating a public nuisance. The safety of the Triathlon race event participants shall be the sole responsibility of Zuma Foundation
Concession Rights. The City hereby grants Zuma Foundation the right to operate, or to license (in whole or in part) to others, the Concessions associated with the Triathlon race event during the Race Period.

The City agrees not to hereafter extend any Concession rights to any person or entity other than Zuma Foundation which would permit the operation or licensing of Concessions, or the vending or offering for 7 Agreement between the
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sale of any goods or services competitive with the Concessions. Notwithstanding the foregoing, this grant of rights to Concessions shall not affect the activities of otherwise properly licensed Malibu merchants and businesspersons in conducting their trade or business during the Triathlon race event, or parties with which it has contracted to provide Concessions at any City-owned property or facility.

6.2 Ticket Sale Rights and City Rights. The City hereby grants to Zuma Foundation exclusive Ticket Sale Rights for the Triathlon race event.

6.3 Participation. The total number of participants for the Triathlon race event shall not exceed: 4,000 participants.

6.4 No Interest in Land. Zuma Foundation rights pursuant to this Agreement shall not be construed as a lease, easement, or other interest in land, buildings, or other property of the City.

6.5 Donation. Zuma Foundation agrees to donate the following minimum amount to a Malibu 501(c)(3) youth-based community-oriented charitable organization no later than 60 calendar days after the final event date each year.

Year Donation
2025 $50,000
2026 $55,000
2027 $60,500
2028 $66,550
Zuma Foundation agrees that it will identify each benefiting Malibu youth-based non-profit or Malibu community-oriented charitable organization’s specific area or areas that said the donation would go towards.

This Agreement and all of its terms, conditions, and provisions is made and entered into for the sole protection and benefit of Zuma Foundation and the City and not for the benefit of any other individual or entity. No other person has any right of action of any kind based on any provision of this Agreement, nor may any other person be deemed to be a third-party beneficiary under this Agreement.

6.6 Exclusivity. The City will not authorize, without Zuma Foundation’s permission, any Triathlon race event, other than the Triathlon race event organized and conducted by Zuma Foundation, sixty (60) days before the Triathlon race event or sixty (60) days after the Triathlon race event throughout the Term of this Agreement.

6.7 Termination. Either the City or Zuma Foundation may terminate this Agreement, without cause, by giving the other party six (6) months written notice of such termination and the effective date thereof.

6.7.1 If Zuma Foundation or the City fail to fulfill in a timely and proper manner its obligations under this Agreement, or if Zuma Foundation or the City violate any of the covenants, agreements, or stipulations of this Agreement, Zuma Foundation or the City shall have the right to terminate this Agreement by giving written notice to the other party of such termination and specifying the effective date of such termination. Zuma Foundation shall be entitled to receive compensation in accordance with the terms of this Agreement for any work 8 Agreement between the
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satisfactorily completed hereunder. Notwithstanding the foregoing, Zuma Foundation shall not be relieved of liability for damage sustained by virtue of any breach of this Agreement, and any payments due under this Agreement may be withheld to offset anticipated damages.

6.8 Non-Assignability. Zuma Foundation shall not assign or transfer any interest in this Agreement without the express prior written consent of the City, which consent may be withheld by the City for any reason the City Council should determine in its sole and absolute discretion. This Agreement and all rights and obligations pursuant to the Agreement is/are and shall be binding on Zuma Foundation and any of its successors or assigns, including any successor by way of merger, consolidation, or otherwise, and including any purchaser or acquirer of all substantially all of the assets of Zuma Foundation, or any of its respective successors or assigns (in any manner identified above); provided, however, that Zuma Foundation’s rights to pursuant to this Agreement shall automatically terminate if Zuma Foundation should, without the City’s express prior written consent, consummate a merger, consolidation, asset sale, stock issuance, or other similar transaction by which ownership of more than fifty percent (50%) of Zuma Foundation or its assets should be acquired by a person or entity that is not currently the owner of at least twenty-five percent (25%) of Zuma Foundation.

6.9 Non-Discrimination. Zuma Foundation shall not discriminate as to race, creed, gender, color, national origin, or sexual orientation in the performance of its services and duties pursuant to this Agreement, and will comply with all applicable laws, ordinances, and codes of the Federal, State, County and City governments.

6.10 Insurance. The Zuma Foundation shall submit to the City certificates indicating compliance with the following minimum insurance requirements no less than ten (10) days prior to the Triathlon race event. The Zuma Foundation further agrees to comply with all provisions in the attached Exhibit C which is incorporated herein.

6.11 Indemnification. Zuma Foundation shall indemnify, defend with counsel approved by City, and hold harmless City, its officers, officials, employees, and volunteers from and against all liability, loss, damage, expense, cost (including without limitation reasonable attorney’s fees, expert fees, and all other costs and fees of litigation) of every nature arising out of or in connection with Zuma Foundation’s activities related to producing and conducting a Triathlon race event hereunder or its failure to comply with any of its obligations contained in this Agreement, regardless of City's passive negligence, but excepting such loss or damage which is caused by the sole active negligence or willful misconduct of the City. Should City in its sole discretion find Zuma Foundation’s legal counsel unacceptable, then Zuma Foundation shall reimburse the City its costs of defense, including without limitation reasonable attorney's fees, expert fees and all other costs and fees of litigation. Zuma Foundation shall promptly pay any final judgment rendered against the City (and its officers, officials, employees, and volunteers) covered by this indemnity obligation. It is expressly understood and agreed that the foregoing provisions are intended to be as broad and inclusive as is permitted by the law of the State of California and will survive termination of this Agreement.

6.12 Compliance with Applicable Law. Zuma Foundation and the City shall comply with all applicable laws, ordinances, and codes of the federal, state, county, and city 9 Agreement between the
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governments, including, without limitation, Malibu Municipal Code Chapter 5.36 Minimum Wage.

6.13 Independent Contractor. This Agreement is by and between the City and Zuma Foundation and is not intended, and shall not be construed, to create the relationship of agency, servant, employee, partnership, joint venture, or association, as between the City and Zuma Foundation.

6.13.1 Zuma Foundation shall be an independent contractor and shall have no power to incur any debt or obligation for or on behalf of the City. Neither the City nor any of its officers or employees shall have any control over the conduct of Zuma Foundation, or any of Zuma Foundation’s employees, except as herein set forth, and Zuma Foundation expressly warrants not to, at any time or in any manner, represent that it, or any of its agents, servants or employees are in any manner employees of the City, it being distinctly understood that Zuma Foundation is and shall at all times remain to the City a wholly independent contractor and Zuma Foundation’s obligations to the City are solely such as are prescribed by this Agreement.

6.13.2 Zuma Foundation shall not use the City Seal or present the Triathlon race event as a City-organized event without prior approval from the City.

6.14 Legal Construction.

6.14.1 This Agreement is made and entered into in the State of California and shall in all respects be interpreted, enforced, and governed under the laws of the State of California.

6.14.2 This Agreement shall be construed without regard to the identity of the persons who drafted its various provisions. Each and every provision of this Agreement shall be construed as though each of the parties participated equally in the drafting of same, and any rule of construction that a document is to be construed against the drafting party shall not be applicable to this Agreement.

6.14.3 The article and section, captions, and headings herein have been inserted for convenience only and shall not be considered or referred to in resolving questions of interpretation or construction.

6.14.4 Whenever in this Agreement the context may so require, the masculine gender shall be deemed to refer to and include the feminine and neuter, and the singular shall refer to and include the plural.

6.15 Counterparts. This Agreement may be executed in counterparts and as so executed shall constitute an agreement which shall be binding upon all parties hereto.

6.16 Default. The following shall be deemed events of default ("Default") under this Agreement:

6.16.1 By City. Failure by the City to perform or comply with its 10 Agreement between the
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obligations or responsibilities hereunder, which is not cured within a reasonable time, but in no event to exceed thirty (30) days following receipt by the City of written notice from Zuma Foundation specifying with particularity the Default so claimed. The thirty (30) day curative period provided herein may be expanded by so much additional time as is reasonably necessary to cure the Default, provided that the City commences to cure such Default within such thirty (30) day period and thereafter diligently and continuously proceeds to cure the Default.

6.16.2 By Zuma Foundation. Any one or more of the following shall be deemed a Default by Zuma Foundation:

6.16.2.1 Failure of Zuma Foundation to perform or comply with its obligations or responsibilities hereunder, which is not cured within a reasonable time, but in no event to exceed thirty (30) days following receipt by Zuma Foundation of written notice from the City specifying with particularity the Default so claimed. The thirty (30) day curative period provided herein may be expanded by so much additional time as is reasonably necessary to cure the Default provided that Zuma Foundation commences to cure such Default within such thirty (30) day period and thereafter diligently and continuously proceeds to cure the Default.

6.16.2.2 Zuma Foundation attempts to assign or transfer any interest in this Agreement without the express prior written consent of the City.

6.16.2.3 Zuma Foundation makes a voluntary assignment for the benefit of its creditors.

6.16.2.4 Zuma Foundation files a voluntary petition in
bankruptcy or becomes the subject of an involuntary petition in bankruptcy which is not discharged within sixty (60) days after the filing of such involuntary petition in bankruptcy.

6.17 Waiver; Remedies Cumulative. Failure by a party to insist upon the performance of any of the provisions of this Agreement by the other party, irrespective of the length of time for which such failure continues, shall not constitute a waiver of such party's right to demand compliance by such other party in the future. No waiver by a party of a default or breach of the other party shall be effective or binding upon such party unless made in writing by such party, and no such waiver shall be implied from any omissions by a party to take any action with respect to such default or breach. No express written waiver of a specified default or breach shall affect any other default or breach, or cover any other period of time, other than any default or breach and/or period of time specified. All of the remedies permitted or available to a party under this Agreement, or at law or in equity, shall be cumulative and alternative, and invocation of any such right or remedy shall not constitute a waiver or election of remedies with respect to any other permitted or available right of remedy. In no event shall either party be liable for any loss of use, loss of time, inconvenience, lost profits or other special, incidental or consequential damages in any way related to or arising from this Agreement or the Triathlon Race Event.

6.18 Mitigation of Damages. In all such situations arising out of this Agreement, the parties shall attempt to avoid and minimize the damages resulting from the conduct of the other party.
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6.19 Force Majeure. Each Party shall be excused from performance of its obligations hereunder to the extent such performance has been delayed, hindered or prevented by any cause or causes beyond such Party's reasonable control, which shall include, without limitation, labor disputes, riots, civil commotion or insurrection, war, war-like operations or terrorist acts, invasion, rebellion, military or usurped power, sabotage, governmental restrictions, regulations, or controls, inability to obtain any materials or services, fire or other casualties, natural disasters or acts of God. In the event any Triathlon Race Facility or portion thereof is destroyed or substantially damaged at any time during the Term of this Agreement by fire, casualty, or other cause, the City shall not be required to repair or rebuild such Triathlon Race Facilities or portion thereof. If the Triathlon Race Course is unavailable due to circumstances beyond the City's control, the Parties shall mutually agree in writing on a revised Triathlon Race Course approved through the City Temporary Use Permit Application Process.

6.20 Partial Invalidity. If any provision in this Agreement is held by a court of competent jurisdiction to be invalid, void, or unenforceable, the remaining provisions will nevertheless continue in full force without being impaired or invalidated in any way.

6.21 Entire Agreement. This Agreement constitutes the whole agreement between the City and Zuma Foundation, and neither party has made any representations to the other except as expressly contained herein. Neither party, in executing or performing this Agreement, is relying upon any statement or information not contained in this Agreement. Any changes or modifications to this Agreement must be made in writing appropriately executed by both the City and Zuma Foundation.

6.22 Notices. Any notice required to be given hereunder shall be deemed to have been given by depositing said notice in the United States mail, postage prepaid, and addressed as follows:

City: Steve McClary Zuma Foundation Inc.: Michael Epstein City Manager Executive Director
City of Malibu
23825 Stuart Ranch Road
Zuma Foundation Inc.
30765 Pacific Coast Hwy #331
Malibu, CA 90265-4861 Malibu, CA 90265
TEL (310) 456-2489 x 224 TEL: (818) 419-4231
FAX (310) 456-2760 [email protected]

6.23 Warranty of Authorized Signatories and Acceptance of Facsimile or Electronic Signatures. Each of the signatories hereto warrants and represents that he or she is competent and authorized to enter into this Agreement on behalf of the party for whom he or she purports to sign. The Parties agree that this Contract, agreements ancillary to this Contract, and related documents to be entered into in connection with this Contract will be considered signed when the signature of a party is delivered physically or by facsimile transmission or scanned and delivered via electronic mail. Such facsimile or electronic mail copies will be treated in all respects as having the same effect as an original signature.
[Signature Page(s) to Follow]
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This Agreement is executed on , at Malibu, California, and effective as of . CITY OF MALIBU:

STEVE MCCLARY, City Manager
ATTEST:

KELSEY PETTIJOHN, City Clerk
(seal)
ZUMA FOUNDATION:

By: MICHAEL EPSTEIN, Executive
Director Zuma Foundation Inc.

APPROVED AS TO FORM:

TREVOR RUSIN, Interim City Attorney
13 14
15 16
17 18
19 EXHIBIT
A
20 EXHIBIT B
Zuma Foundation Inc.
2025 – 2028 Race Dates
Year Race Dates
2025 September 13-14
2026 September 19-20
2027 September 18-19
2028 September 16-17
General Logistics Timeline
Each year, set-up will start at Zuma Beach on Monday prior to race weekend. All week, set-up will be confined to the beach and parking lots at Zuma, on County Property.

The Zuma Foundation's Triathlon for Kids will take place on the Saturday of the event weekend.

It will be fully self-contained inside the Zuma Beach parking lot.

Race packet pick-up will take place at Zuma Beach on Saturday Afternoon each year. Sunday of each year will feature the Malibu Foundation Sprint and Olympic distance events. 21 EXHIBIT C

INSURANCE LANGUAGE
Without limiting Zuma Foundation Inc.’s indemnification of City, and prior to commencement of work and/or services under this Agreement, Zuma Foundation Inc. shall obtain, provide, and maintain at its own expense during the term of this Agreement, policies of insurance of the type and amounts described below and in a form satisfactory to City.

General Liability Insurance. Zuma Foundation Inc. shall maintain commercial general liability insurance with coverage at least as broad as Insurance Services Office form CG 00 01, in an amount not less than $7,000,000 per occurrence, $9,000,000 general aggregate, for bodily injury, personal injury, and property damage. The policy must include contractual liability that has not been amended. Any endorsement restricting standard ISO “insured contract” language will not be accepted.

Automobile Liability Insurance. Zuma Foundation Inc. shall maintain automobile insurance at least as broad as Insurance Services Office form CA 00 01 covering bodily injury and property damage for all activities of the Zuma Foundation Inc. arising out of or in connection with Work to be performed under this Agreement, including coverage for any owned, hired, non-owned, or rented vehicles, in an amount not less than 2,000,000 combined single limit for each accident.

Workers’ Compensation Insurance. Zuma Foundation Inc. shall maintain Workers’ Compensation Insurance (statutory limits) and Employer’s Liability insurance (with limits of at least $1,000,000).

Zuma Foundation Inc. shall submit to Agency, along with the certificate of insurance, a Waiver of Subrogation endorsement in favor of City, its officers, agents, employees, and volunteers.

Athletic Participant Medical Expense Insurance. Zuma Foundation Inc.shall obtain and maintain athletic participant medical expense insurance with a $25,000 limit per participant. This coverage should extend to volunteers, event officials if applicable, and other attendees involved in the event who may not be participants.

Sexual Abuse/Molestation Insurance. Zuma Foundation Inc. shall procure and maintain sexual abuse and molestation liability coverage in an amount not less than $1,000,000 per occurrence, $2,000,000 general aggregate. This coverage may be part of commercial general liability coverage, professional liability coverage, or a separate policy.

Participant Race Waiver. Zuma Foundation Inc. shall include waiving claims against the City of Malibu on all participant race waivers, forms, and documents.

OTHER PROVISIONS OR REQUIREMENTS
Proof of Insurance. Zuma Foundation Inc. shall provide certificates of insurance and required endorsements to City as evidence of the insurance coverage required herein. Insurance certificates and endorsements must be approved by City’s Risk Manager prior to commencement of performance. Current certification of insurance shall be kept on file with City for the contract 22 EXHIBIT C
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period and any additional length of time required thereafter. City reserves the right to require complete, certified copies of all required insurance policies, at any time.

Duration of Coverage. Zuma Foundation Inc. shall procure and maintain for the contract period, and any additional length of time required thereafter, insurance against claims for injuries to persons or damages to property, or financial loss which may arise from or in connection with the performance of the Work hereunder by Zuma Foundation Inc., their agents, representatives, employees, or sub Zuma Foundation Inc’s.

Primary/Noncontributing. Coverage provided by Zuma Foundation Inc. shall be primary and any insurance or self-insurance procured or maintained by City shall not be required to contribute with it. The limits of insurance required herein may be satisfied by a combination of primary and umbrella or excess insurance. Any umbrella or excess insurance shall contain or be endorsed to contain a provision that such coverage shall also apply on a primary and non-contributory basis for the benefit of City before the City’s own insurance or self- insurance shall be called upon to protect it as a named insured.

City’s Rights of Enforcement. In the event any policy of insurance required under this Agreement does not comply with these specifications or is canceled and not replaced, City has the right but not the duty to obtain the insurance it deems necessary, and any premium paid by City will be promptly reimbursed by Zuma Foundation Inc. or City will withhold amounts sufficient to pay premium from Zuma Foundation Inc. payments. In the alternative, City may cancel this Agreement.

Acceptable Insurers. All insurance policies shall be issued by an insurance company currently authorized by the Insurance Commissioner to transact business of insurance or is on the List of Approved Surplus Line Insurers in the State of California, with an assigned policyholders’ Rating of A- (or higher) and Financial Size Category Class VII (or larger) in accordance with the latest edition of Best’s Key Rating Guide, unless otherwise approved by the City’s Risk Manager.

Waiver of Subrogation. All insurance coverage maintained or procured pursuant to this agreement shall be endorsed to waive subrogation against City, its elected or appointed officers, agents, officials, employees, and volunteers or shall specifically allow Zuma Foundation Inc.or others providing insurance evidence in compliance with these specifications to waive their right of recovery prior to a loss. Zuma Foundation Inc. hereby waives its own right of recovery against City and shall require similar written express waivers and insurance clauses from each of its sub Zuma Foundation Inc’s.

Enforcement of Contract Provisions (Non Estoppel). Zuma Foundation Inc. acknowledges and agrees that any actual or alleged failure on the part of the City to inform Zuma Foundation Inc. of non-compliance with any requirement imposes no additional obligations on the City nor does it waive any rights hereunder.

Requirements Not Limiting. Requirements of specific coverage features or limits contained in this Section are not intended as a limitation on coverage, limits or other requirements, or a waiver 23 EXHIBIT C
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of any coverage normally provided by any insurance. Specific reference to a given coverage feature is for purposes of clarification only as it pertains to a given issue and is not intended by any party or insured to be all inclusive, or to the exclusion of other coverage, or a waiver of any type. If the Zuma Foundation Inc. maintains higher limits than the minimums shown above, the City requires and shall be entitled to coverage for the higher limits maintained by the Zuma Foundation Inc.. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the City.

Notice of Cancellation. Zuma Foundation Inc. agrees to oblige its insurance agent or broker and insurers to provide the City with a thirty (30) day notice of cancellation (except for nonpayment for which a ten (10) day notice is required) or nonrenewal of coverage for each required coverage.

If any of the Zuma Foundation Inc.’s insurers are unwilling to provide such notice, then Zuma Foundation Inc. shall have the responsibility of notifying the City immediately in the event of Zuma Foundation Inc.’s failure to renew any of the required insurance coverages, or insurer’s cancellation or non-renewal.

Additional Insured Status. General liability, automobile liability, and umbrella/excess liability insurance policies shall provide or be endorsed to provide that City and its officers, officials, employees, agents, and volunteers shall be additional insureds under such policies.

Prohibition Of Undisclosed Coverage Limitations. None of the coverages required herein will be in compliance with these requirements if they include any limiting endorsement of any kind that has not been first submitted to City and approved of in writing.

Separation of Insureds. A severability of interests’ provision must apply for all additional insureds ensuring that Zuma Foundation Inc.’s insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the insurer’s limits of liability. The policy(ies) shall not contain any cross-liability exclusions.

Pass Through Clause. Zuma Foundation Inc. agrees to ensure that its sub Zuma Foundation Inc’s, subcontractors, and any other party who is brought onto or involved in the project/service by Zuma Foundation Inc. (hereinafter collectively “Subcontractor”), provide the same minimum insurance coverage and endorsements required of Zuma Foundation Inc. under this Agreement. Zuma Foundation Inc. agrees to monitor and review all such coverage and assumes all responsibility for ensuring that such coverage is provided in conformity with the requirements of this section.

However, in the event Zuma Foundation Inc.’s Subcontractor cannot comply with this requirement, which proof must be submitted to the City, Zuma Foundation Inc. may still be able to utilize the Subcontractor provided Zuma Foundation Inc. shall be required to ensure that its Subcontractor provide and maintain insurance coverage and endorsements sufficient to the specific risk of exposure involved with Subcontractor’s scope of work and services, with limits less than required of the Zuma Foundation Inc., but in all other terms consistent with the Zuma Foundation Inc.’s requirements under this Agreement. This provision does not relieve Zuma Foundation Inc. of its contractual obligations under the Agreement and/or limit its liability to the amount of insurance coverage provided by its subcontractors. This provision is intended solely to provide Zuma Foundation Inc. with the ability to utilize a Subcontractor who may be otherwise qualified 24 EXHIBIT C
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to perform the work or services but may not carry the same insurance limits as required of the Zuma Foundation Inc. under this Agreement given the limited scope of work or services provided by the subcontractor. Zuma Foundation Inc. agrees that upon request, all agreements with Subcontractors, and others engaged in the project and/or services, will be submitted to City for review.

City’s Right to Revise Specifications. The City reserves the right at any time during the term of the contract to change the amounts and types of insurance required by giving the Zuma Foundation Inc. ninety (90) days’ advance written notice of such change. If such a change results in substantial additional costs to the Zuma Foundation Inc., the City and Zuma Foundation Inc. may renegotiate the Zuma Foundation Inc.’s compensation.

Self-Insured Retentions. Any self-insured retentions must be declared to and approved by the City. City reserves the right to require that self-insured retentions be eliminated, lowered, or replaced by a deductible, or require proof of ability to pay losses and related investigations, claim administration, and defense expenses within the retention through confirmation from the underwriter.

Timely Notice Of Claims. Zuma Foundation Inc. shall give City prompt and timely notice of claims made or suits instituted that arise out of or result from Zuma Foundation Inc.’s performance under this Agreement, and that involve or may involve coverage under any of the required liability policies.

Additional Insurance. The Zuma Foundation Inc. shall also procure and maintain, at its own cost and expense, any additional kinds of insurance, which in its own judgment may be necessary for its proper protection and prosecution of the work.
25 City of Malibu
City Council Policy
Policy #47
______________________________________________________________________ Title: Road Race Policy
Purpose: To establish a process for permitting the use of public roadways for non-motorized (walking, running, bicycling) races and events conducted by the private sector that affect residents or use of public resources.

Policy Statement:

This policy is intended to insure the city and its residents have adequate advance notice of any proposed race or related event and the cooperation of the organizers in order to properly plan city services, such as security, sanitation and traffic control, that are required for such an event.

Implementation:

This policy applies to marathons, triathlons and bicycling races or related events requiring the use of public roads in the City of Malibu.

A. Race requirements

1. A City of Malibu Temporary Use Permit is required for all race events;

2. The City may grant a maximum of two (2) temporary use permits for marathons, triathlons, and cycling events per calendar year;

3. Race courses are limited to the section of Pacific Coast Highway between Zuma Beach and the western city limits of Malibu;

4. Race events may only take place the weekend following Labor Day through April 15;

5. Race events may not be held within 30 days of another race event;

6. Race events must be held on Saturdays and/or Sundays, excluding Citydesignated holidays;

7. Race events must take place during daylight hours, between sunrise and sunset;

8. In the event of a “Red Flag Warning” condition, as determined by the Los Angeles County Fire Department, race organizers shall be required to cancel or postpone any race event on the affected days; and

9. The City retains the right to require cancellation or postponement of any race event that risks the health and safety of the racers, spectators, and/or residents due to inclement weather, floods, fire, or other similar circumstances which substantially interfere with the operation of the race event.

Attachment 2
26 B. Requests that exceed race requirements
In order to exceed the requirements, event organizers are required to submit a completed Temporary Use Permit Application and receive City Council approval of the proposed modifications by adoption of a resolution.

C. Additional application requirements
In addition to the application requirements, the following additional information, submitted to the Planning Division, shall constitute a complete application:

1. An overall race plan which includes:
a. Course route designation;
b. Proposed road and intersection closures;
c. Locations of proposed first aid, water stations and restroom facilities; and d. Location of medical assistance facilities, to be determined by the Los Angeles County Fire Department.

2. Maximum number of participants

3. Traffic and Parking Plan
a. For events on City streets, the plan shall be approved by the City Public Works Department.
b. For events on State highways, the plan shall be approved by the State of California Department of Transportation (Caltrans).

D. Special Event Encroachment Permit
In addition to the Temporary Use Permit, a Special Event Encroachment Permit shall be obtained from the City Public Works Department for any events, including but not limited to setup, race course, staging, and parking, to be located in any City public right-of-way.

E. Interagency permits
The applicant shall be responsible for obtaining all required permits and permissions from all applicable agencies and jurisdictions. The applicant must comply with all conditions set forth by all applicable agencies and jurisdictions, including but not limited to:

1. City of Malibu Planning Department

2. City of Malibu Public Works Department

3. State of California Department of Transportation

4. State of California Department of Parks and Recreation

5. California Highway Patrol

6. County of Los Angeles Sheriff’s Department
27 7. County of Los Angeles Department of Beaches and Harbors

8. County of Los Angeles Department of Health Services

9. County of Los Angeles Fire Department

10. County of Los Angeles Department of Public Works
Date Adopted:

December 10, 2012
28

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Agenda Item # 7.D.

Council Agenda Report
To: Mayor Stewart and the Honorable Members of the City Council Prepared by: Alexis Brown, Deputy City Manager
Reviewed by: Joseph D. Toney, Assistant City Manager
Approved by: Steve McClary, City Manager
Date prepared: October 10, 2024 Meeting date: October 28, 2024 Subject: Discussion and review of the Mobilehome Park Rent Stabilization Commission and the Mobilehome Park Rent Control Regulations RECOMMENDED ACTION: 1) Review the current standing of the Mobilehome Park Rent Stabilization Commission; and 2) Provide direction to staff as needed.

FISCAL IMPACT: There is no fiscal impact associated with the recommended action.

DISCUSSION: At its September 23, 2024, meeting, the City Council directed staff to bring back an item on the Mobilehome Park Rent Stabilization Commission and the Mobilehome Park Rent Control Regulations.

The Mobilehome Park Rent Stabilization Commission last met on March 13, 2008, and is charged under the City's ordinance with hearing applications for rent increases and rent decreases in accordance with the provisions of the ordinance.

Mobilehome parks are regulated by the Mobilehome Park Residency Law. California Civil Code, sections 789-799.7.1 The City does not have jurisdiction to enforce these laws. These laws define rights that are subject to enforcement by courts.

The City’s rent stabilization ordinance is outlined in Chapter 5.16 of the Municipal Code, a copy of which is attached to this report (Attachment A). In essence, the Commission is City Council Meeting
10-28-24
Item

7.D.
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Agenda Item # 7.D.
responsible for processing applications for both rent increases and decreases. Under the ordinance, the rent for spaces governed by this regulation (i.e., those not subject to a long-term lease compliant with state law) may be automatically adjusted annually by the Consumer Price Index (CPI), with a maximum increase of 5% (ceiling) and a minimum of 2% (floor). This adjustment is referred to as a "Formula Increase." In addition to the annual CPI adjustments, the ordinance allows for an increase in space rent by up to 15% upon the sale of a mobile home, known as a "Vacancy Increase." The ordinance also provides for rent increases in certain other circumstances, such as when park owners are required by the government to offer additional services beyond those provided when the ordinance was enacted, or when a space is subleased. Additionally, a hardship exemption may apply in some cases.

The Commission’s role is to conduct hearings and make decisions on applications from park owners seeking rent increases to ensure a fair return, or from mobile homeowners seeking rent decreases when housing services have been reduced. The procedures for processing these applications are outlined in the Commission Regulations, which are also attached to this report.

ATTACHMENTS:

1. Municipal Code - Chapter 2.28. Mobilehome Park Rent Stabilization Commission

2. Municipal Code - Chapter 5.16. - Mobilehome Park Rent Control Regulations

3. Mobilehome Park Rent Stabilization Commission Agenda Report

2 A.

City of Malibu, CA
Thursday, October 10, 2024
Title 2. Administration and Personnel
Chapter 2.28. MOBILEHOME PARK RENT STABILIZATION

COMMISSION
§ 2.28.010. Establishment and organization.

There is established a commission to be known as the "Malibu mobilehome park rent stabilization commission" or "mobilehome park rent stabilization commission." The commission shall be comprised of five residents of the city. Each member of the city council shall appoint one member of the commission to serve at the pleasure of the appointing councilmember. Appointments shall be made at a regular city council meeting following a general municipal election. Vacancies on the mobilehome park rent stabilization commission shall be filled by appointment at a regular city council meeting by the individual councilmember who made the appointment to the seat which is vacant. In no event shall any member of the commission be or, at any time during the immediately preceding five years, have been a park owner or homeowner.

The city manager shall provide all administrative staff necessary to serve the commission.

The city clerk shall serve as secretary of the commission and shall be responsible for the maintenance of all records of the commission. The secretary shall keep a record of its proceedings, which shall be open for inspection by any member of the public. The city attorney or the designee of the city attorney shall act as legal counsel to the commission. (Prior code § 2111; Ord. 127 § 1, 1995; Ord. 146 § 1, 1996) § 2.28.020. Term.

Each member of the mobilehome park rent stabilization commission shall serve a four-year term.

Commissioners shall be appointed at a regular city council meeting following a general municipal election. The commission seats shall be divided into two groups, one group of three commissioners and one group of two commissioners. Each group of commissioners' terms shall expire respectively after alternate municipal elections. (Prior code § 2112; Ord. 127 § 1, 1995)
§ 2.28.030. Mobilehome park rent stabilization commission— Powers and duties.

Within the limitations provided by law, the commission shall have the following powers and duties:

To adjust space rents either upward or downward upon completion of its hearings and investigations; and
To adopt, promulgate, amend and rescind administrative rules to effectuate the purposes and policies of this chapter, within the limitations provided by law or by rules adopted by the city council.
(Prior code § 2113; Ord. 127 §1, 1995)
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4 A.

City of Malibu, CA
Thursday, October 10, 2024
Title 5. Business Licenses and Regulations
Chapter 5.16. MOBILEHOME PARK RENT CONTROL

REGULATIONS
§ 5.16.010. Purpose of provisions.

When the county of Los Angeles adopted Chapter 8.57 of the Los Angeles County Code (Ordinance No. 87-0228) to regulate mobilehome parks in the unincorporated areas of the county, the county found that there was within the county of Los Angeles a shortage of spaces for the location of mobilehomes. The area that is now the city of Malibu was previously part of the unincorporated area of the county and was subject to Chapter 8.57 of the Los Angeles County Code. The city of Malibu incorporated on March 28, 1991. There continues to be a shortage of mobilehome spaces in the area that is now the city of Malibu. Because of this shortage, there is a low vacancy rate and rents are presently rising and causing concern among a substantial number of mobilehome park residents. Because of the high cost of moving mobilehomes; the potential for damage resulting therefrom; the requirements relating to the installation of mobilehomes, including permits, landscaping and site preparation; the lack of alternative homesites for mobilehome residents; and the substantial investment of homeowners in such homes, a virtual monopoly exists in the rental of mobilehome park spaces, creating a situation where park owners have unbridled discretion and ability to exploit mobilehome park residents and homeowners.

Homeowners are in the unique position of having made a substantial investment in a mobilehome that is situated on land that is rented or leased. In this situation both the park owner and the homeowner have a financial stake in the relationship.

Additionally, because park space is virtually unavailable and relocating difficult and costly, the closure of a mobilehome park or its change of use has disastrous implications or results for homeowners, who may find it impossible to relocate to a comparable park.

For these reasons, among others, the city council finds and declares it necessary to protect the owners and occupiers of mobilehomes from unreasonable rent increases, while at the same time recognizing the need of park owners to receive a fair return on their property. In addition, the city council finds that it is necessary to provide for the preparation and approval of reports evaluating the impact of changes of use of the parks and provide for measures to mitigate the impact on residents of these changes of use.
(Prior code § 6700; Ord. 48U § 1, 1991)
§ 5.16.020. Definitions.
"Allowable legal expenses" means attorney's fees and costs incurred in connection with successful good-faith attempts to recover rents owing, and successful good-faith unlawful detainer actions not in derogation of applicable law, to the extent same are not recovered from homeowners. Attorney's fees and costs incurred in proceedings before the commission, or in connection with civil actions against the commission, are not allow-able as operating expenses.
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5 ATTACHMENT 2

1. 2.

3. 4.

5. 1.

2. 3.

4. 5.
"Base rent" means: (1) for spaces not subject to a long term lease that complies with the provisions of Civil Code Section 798.17, the space rent charged on March 28, 1991; and (2) for spaces subject to valid long term leases on March 28, 1991, which leases comply with the provisions of Civil Code Section 798.17, the last space rent charged under the long term lease. "Capital improvements" means the park owner's cost of constructing new improvements or replacing old improvements in the mobilehome park, subject to the following limitations:

The improvement must: have a life expectancy of five years or more and must be treated as capital improvements for federal and state income tax purposes, and may not be deducted for such tax purposes as expenses.

Normal routine maintenance and repair are not capital improvements.

Insured repairs and replacement are not capital improvements.

The improvements must be permanently fixed in place or relatively immobile.

Those improvements that the park owner intends to pass through to the homeowner through special and limited rent increases, except for necessary infrastructure improvements, must be approved by 50% plus one of the homeowners.
"Capital improvements" include construction, installation or replacement of all or a portion of a clubhouse, laundry facility or other common area facilities a swimming pool, sauna, hot tub or other recreational amenities, streets, security gates, outdoor or common area lighting, retaining walls, sewer, electrical, plumbing, water or television reception systems, sprinkler systems, or any addition to or upgrade of existing improvements.
"Commission" means the mobilehome park rent stabilization commission, as established by this chapter.
"CPI" means the Consumer Price Index (All Items) prepared by the Bureau of Labor Statistics for the Los Angeles-Anaheim-Riverside area relating to all urban consumers. If the method of calculating the CPI is substantially revised after the adoption of the ordinance codified in this chapter, the method in effect upon adoption of such ordinance shall continue to be used, or the revised CPI shall be adjusted by the city to correspond to that method.

CPI Adjustment Period. The city shall calculate and furnish a figure constituting the CPI change for use as the basis of rent increases. Such figure need only be based upon available data. This figure shall be based on the changes in the CPI during the last available 12-month period for which information is available from the Bureau of Labor Statistics prior to the effective date of the base rent or current space rent.
"Gross income" means and includes the following:

Gross rent, computed as gross rental income at 100% paid occupancy; plus Interest from rental deposits, unless directly paid by the park owner to the homeowner (interest shall be imputed at the rate of five and one-half percent of all deposits, unless such deposits earn greater interest); plus
Income from laundry facilities, cleaning fees or services, garage and parking fees attributable to mobilehome spaces; plus
All other income or consideration received or receivable for, or in connection with the housing services; minus
Uncollected rents due to vacancy and bad debts, to the extent that the same are beyond the owner's control. Uncollected rents in excess of three percent of gross rents shall be presumed to be unreasonable, unless proven otherwise. Where uncollected rent must be proven, the average of the preceding three years' experience shall be used, or other comparable method. 10/10/24, 5:21 PM City of Malibu, CA MOBILEHOME PARK RENT CONTROL REGULATIONS https://ecode360.com/print/MA5043?guid=44332271 2/16
6 1.

2. 3.

4. 5.

6. 7.

1. 2.
"Homeowner" means any person entitled to occupy a mobilehome which is located within a mobilehome park in the city.
"Housing services" means services provided by the park owner related to the use or occupancy of a mobilehome space, including, but not limited to, water and sewer, natural gas, electricity, refuse removal, management and administration (including employee salaries and fringe benefits), maintenance and repairs, supplies, advertising, recreation facilities, laundry facilities, parking, security services, insurance, property taxes, governmental assessments, and other costs reasonably attributable to the operation of the mobilehome park. The term "housing services" shall not include legal fees or mortgage payments, whether for principal, interest, or both. "Mobilehome" means a structure designated or designed for human habitation, transported over the high-ways to a-permanent occupancy site, and installed on the site either with or-without a permanent foundation. "Mobile-home" includes a manufactured home, as defined in the Health and Safety Code, but does not include either a recreational vehicle or a commercial coach, as they are defined in the Health and Safety Code.
"Mobilehome park" means an area of land where two or more mobilehome spaces are rented or leased for mobilehomes used as residences. "Mobilehome park" does not include developments which sell lots for mobilehomes or which provide condominium ownership of such lots, even if one or more homes in the development are rented or leased out.
"Mobilehome park owner" or "park owner" means the owner, lessor, operator or manager of a mobilehome park in the city.
"Necessary infrastructure improvements" means maintenance (such as replacement of a necessary component of a system or improvement, and other than normal maintenance or repair which constitute "operating expenses" pursuant to this section of streets, electrical, gas, plumbing, sewer or water systems, except that costs of replacement or repair incurred or required as a result of the park owners negligence.
"Operating expenses" shall include the following:

Real property taxes;
Utility costs;
Management expenses (contracted or park owner-performed), including necessary and reasonable advertising, accounting, insurance, and other managerial expenses, and allowable legal expenses. Management expenses are presumed to be five percent of gross income, unless established otherwise;
Normal repair and maintenance expenses, including painting, normal cleaning, fumigation, landscaping, and repair of all standard services, including electrical, plumbing, carpentry, furnished appliances, drapes, carpets and furniture;
Park owner performed labor, which shall be compensated at a reasonable hourly rate, based upon documentation being provided, showing the date, time and nature of the work performed; License and registration fees required by law, to the extent same are not otherwise paid by homeowners;
Capital expenses with a total cost of less than $100 per year, benefited unit, and the amortized portion of other capital expenses otherwise allowed by regulation. "Operating expenses" shall not include:

Avoidable and unnecessary expenses since the base year, including refinancing costs; Mortgage principal and interest payments;
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7 3.

4. 5.

6. 7.

8. 1.

2. 3.

4. A.

Any penalty, fees or interest assessed or awarded for violation of this or any other law; Legal fees, except allowable legal expenses as defined in this section; Depreciation of the property;
Any expense for which the park owner has been reimbursed by any security deposit, insurance settlement, judgment for damages, settlement or any other method; Land lease payments;
Cost of replacement or repair incurred or necessary as a result of the park owner's negligence or failure to maintain.
"Space rent" means the consideration on a monthly basis, including any bonuses, benefits or gratuities, demanded or received in connection with the use and occupancy of a mobilehome space in a mobilehome park, or for housing services provided, but exclusive of:

Any amount paid for the use of a mobilehome;
Security deposits and special and limited rent increases; User fees for services or facilities which may be utilized at the option of the homeowners and are not included in monthly space rent; and
Utility charges for those mobilehome parks which bill homeowners separately whether or not the mobilehomes are individually metered.
(Prior code § 6701; Ord. 48U § 1, 1991; Ord. 75 § 2, 1992; Ord. 115U §§ 2, 3, 1994; Ord. 116 § 2, 1994; Ord. 121 §§ 5—7, 1994)
§ 5.16.030. Exemptions.

The provisions of this chapter shall not apply to the following tenancies in mobilehome parks located in the city, except that all tenancies in mobilehome parks shall be subject to the registration provisions of Sections 5.16.060 and 5.16.070:

Mobilehome park spaces rented for nonresidential uses;
Mobilehome parks managed or operated by the United States Government, the state of California, the county of Los Angeles or the city of Malibu;
Tenancies which do not exceed an occupancy of 20 days and which do not contemplate an occupancy of more than 20 days;
Tenancies for which any federal or state law or regulation specifically prohibits rent regulations; Tenancies subject to rental agreements exempt from local ordinances pursuant to Civil Code Section 798.17; and
Tenancies covered by leases or rental agreements existing at the effective date of the ordinance codified in this chapter which are not exempt pursuant to subsection E of this section, but only for the duration of such leases or rental agreements. Upon the expiration or other termination of such lease or rental agreement, this chapter shall immediately be applicable to the tenancy, unless that lease or rental agreement immediately succeeded by a lease or rental agreement referred to in subsection E of this section.
(Prior code § 6702; Ord. 48U § 1, 1991)
§ 5.16.040. Mobilehome park rent stabilization commission— Establishment and organization.
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8 A.

There is established a commission to be known as the "Malibu Mobilehome Park Rent Stabilization Commission." The commission shall be comprised of five residents of the city. A member of the commission shall be appointed to a vacant position by four-fifths vote of the city council and serve at the pleasure of the city council. In no event shall any member of the commission be or, at any time during the immediately five years have been, a park owner or homeowner.

The city manager shall provide all administrative staff necessary to serve the commission. The city clerk shall serve as secretary of the commission and shall be responsible for the maintenance of all records of the commission. The secretary shall keep a record of its proceedings, which shall be open for inspection by any member of the public. The city attorney or the designee of the city attorney shall act as legal counsel to the commission.
(Prior code § 6703; Ord. 48U § 1, 1991)
§ 5.16.050. Mobilehome park rent stabilization commission— Powers and duties.

Within the limitations provided by law, the, commission shall have the following powers and duties:

To receive, investigate, hold hearings on, and pass upon all issues relating to mobilehome park rent stabilization, as set forth in this chapter;
To make or conduct such independent hearings or investigations as may be appropriate to obtain such information as is necessary to carry out its duties; To adjust space rents either upward or downward upon completion of its hearings and investigations; and
To adopt, promulgate, amend and rescind administrative rules to effectuate the purposes and policies of this chapter, within the limitations provided by law or by rules adopted by the city council. (Prior code § 6704; Ord. 48U §1, 1991)
§ 5.16.060. Registration.

Registration Required. Within 60 calendar days after the effective date of the ordinance codified in this chapter, park owners shall register all mobilehome park spaces with the city clerk. No park owners shall be eligible to receive any rent increases as provided for in this chapter unless current registration information is on file with the city clerk.

Initial Registration. The initial registration shall include the names, business addresses, and business telephone numbers of each person or legal entity possessing an ownership interest in the park and the nature of that interest, and all lienholders, (no later than 30 days after acquiring such interest); the number of mobilehome spaces within the park; the name and address of each resident; a rent schedule reflecting space rents within the park on December 31, 1984, for all spaces not exempt from this chapter pursuant to Section 5.16.030; a listing of all other charges, including utilities, now included in space rent, paid by homeowners and the approximate amount of each such charge; a list of all spaces exempt from this chapter pursuant to Section 5.16.030 and the reason for the exemption and, for those exempt pursuant to leases or rental agreements, the date of the expiration of the lease or rental agreement and the amount of the rent; and the name and address to which all required notices and correspondence may be sent.

Determination of Rents. The city manager or his or her designee shall determine the base rent. The decision of the city staff may be appealed to the commission. The decision of city staff, or the commission on appeal, shall be final. The city manager may promulgate regulations necessary to effectuate the purpose of this section.

Re-registration.
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9 1.

2. A.

The city manager or his or her designee may require re-registration as deemed necessary and may promulgate regulations to effectuate the purpose of this section.

The registration requirements provided in this section or which may be established by the city shall apply to all mobilehome parks and mobilehome park spaces, including those exempted from the provisions of this chapter by reason of the existence of a valid rental agreement. (Prior code § 6705; Ord. 48U § 1, 1991; Ord. 75 § 3, 1992) § 5.16.070. Registration and administrative fees.

Establishment of Registration Fee. At the time of initial registration or any subsequent registration, park owners shall pay to the city such registration fee for each mobilehome rental space within the park as may be established by resolution of the city council (not to exceed the reasonable and necessary costs of administration of this chapter). The city council may also provide that up to twothirds of that fee may be passed through to homeowners as special and limited rent increases if apportioned equally among the spaces and charged in 12 equal consecutive installments.

Notwithstanding any other provision of this section, where the total annual amount of the fee to be passed through to each homeowner is less than $48, the park owner may elect to recover the fee from the homeowners in one lump sum rather than in equal monthly installments.

Late Charge. If a park owner does not pay the fee provided for in subsection A of this section within the time period established by the city council, a late charge shall be assessed in an amount established by resolution. No late charges may be passed through as special and limited rent increases to homeowners.

Unpaid Fee. No hearing or other proceedings shall be scheduled to take place, and no rent increase will be granted or will take effect for any mobilehome park for which there are unpaid registration fees.

Purpose of the Fee. The registration fee provided for by this section is intended to defray the reasonable and necessary costs associated with the administration of this chapter and the regulations promulgated pursuant thereto.

Other Administrative Fees. The city council may set by resolution other administrative fees to cover the reasonable costs of processing various requests and appeals, as it deems necessary. (Prior code § 6706; Ord. 48U § 1, 1991; Ord. 91 § 1, 1993; Ord. 116 § 2, 1994; Ord. 168 § 1, 1997) § 5.16.080. Rent increases—Commission approval.

On or after March 28, 1991, no increase in space rents in excess of the amounts permitted pursuant to Section 5.16.090(A) and (B) shall be effective unless approved by the commission as set forth in this chapter.
(Prior code § 6707; Ord. 48U § 1, 1991)
§ 5.16.090. Rent increases—Computation and determination.

Formula Increases. Space rents may be increased automatically and annually by no more than the total percentage change in the CPI for the applicable CPI adjustment period as determined by the city, except that space rent shall not be increased by more than five percent and may be increased by up to two percent. Calculation of the one-year limitation on formula increases shall be from the date the last formula increase became effective for that particular space.

Vacancy Increases. Notwithstanding the provisions of subsection A of this section, upon vacancy, space rent may be increased up to fifteen percent of the then current maximum allowable rent permitted by this chapter prior to the vacancy.
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10 C.

1. a.
b.
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2. a.
b.
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1. Special and Limited Rent and Rent Increases.

Government Required Services. The homeowner shall pay to the parks owner, on the herein described terms, no less than 60 days after the park owner has notified the homeowner in writing, the increased costs to the park owner of government required services, which are to be included as part of the homeowner's rent but separately listed items on the monthly statement.

For the purposes of this chapter, "government required services" shall be defined as services required by governmental agencies which are new or in addition to those services legally required to be provided by the park owner to homeowners or to the mobilehome park on March 28, 1991.

Such services include fees and charges legally levied by an agency of federal, state or local government upon the park owner. Such services do not include predictable expenses for operation of the mobilehome park, such as common-area utilities expenses or expenses which maintain the safe and healthful use of mobilehome park facilities.

The park owner's actual out-of-pocket costs of providing government required services may be charged to the homeowner upon 60 days' written notice, using the following formula: Amount actually paid by the park owner, divided by the total number of spaces in the mobilehome park, divided by 12 months, equals the sum for government-required services to be charged to the homeowner. Notwithstanding the formula described above, only those costs of providing governmental required services in the 12 months immediately preceding the proposed charge shall be reimbursed to the park owner by the homeowner in the manner herein described. The park owner shall charge the homeowner only those costs for government required services which are not reimbursed to the park owner by insurance or other sources.

Capital Improvements.
(i) Necessary infrastructure improvements subject only to the provisions of subsection (C) (2)(d) of this section; and (ii) subject to the vote requirements and the capital improvement limitations set forth in Section 5.16.020, and also subject to review by the commission pursuant to Section 5.16.110, the actual net costs of a capital improvement plus an interest charge to compensate the park owner for the use of money in making the improvement, as described below, may be charged to the homeowners upon 60 days' written notice, using the following formula: net amount actually paid by the park owner for the capital improvement, plus an interest charge as described below, divided by the total number of spaces in the mobilehome park affected by the improvement, divided by the amortization period for the capital improvement allowed by the Internal Revenue Service, equals the monthly sum for capital improvements to be charged to the homeowners and billed separately from space rent.

The interest charge that may be added to the costs of materials and labor is the current rate derived from the then-current prime interest rate, computed on a declining balance over a five-year period with equal monthly payments (the five-year period represents the amount of time allowed for fully amortizing the cost of capital improvements).

Notwithstanding the provisions of subsection (C)(2)(a) of this section and Section

5.16.100, the city manager may approve special and limited rent increases for necessary infrastructure improvements upon a showing by the park owners that the proposed improvement meets the requirements of Section 5.16.020 and that the park owner obtained a minimum of three bids from qualified persons/entities to perform the work, if possible, and that the park owner selected the person/entity submitting the lowest responsible bid to perform the work for the proposed necessary infrastructure improvement. No commission review is required or permitted.

Sublease Surcharge. Notwithstanding the provisions of subsection A of this section, upon sublease of a space and/or lease of a mobilehome, the space rent may be increased up to 10/10/24, 5:21 PM City of Malibu, CA MOBILEHOME PARK RENT CONTROL REGULATIONS https://ecode360.com/print/MA5043?guid=44332271 7/16
11 2.

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1. 15% of the rent otherwise permitted under this chapter. This rent surcharge shall be effective only for the duration of the sublease and shall be eliminated when and if the sublease is terminated. A sublease surcharge shall not become effective until 12 months after the last vacancy increase pursuant to subsection B of this section. The sublease surcharge rent amount shall be calculated separately and shall not be included in the maximum allowable rent for the purposes of calculating formula increases pursuant to subsection A of this section. The provisions of this subsection shall not apply to those spaces granted hardship exemptions pursuant to subsection F of this section for as long as the space is eligible for such exemption.

Absentee Owner Surcharge. Notwithstanding the provisions of subsection A of this section, in the event that a homeowner does not use his or her mobilehome at a mobilehome park as a primary or principal residence and the homeowner is not otherwise subject to subsection (D)(1) of this section, the homeowner's space rent may be increased up to 15% of the rent otherwise permitted under this chapter. This rent increase shall be effective only until the homeowner occupies his or her mobilehome at the mobilehome park as a primary residence or the homeowner subleases his or her space or mobilehome and becomes subject to subsection (D) (1) of this section. For purposes of this chapter, a primary residence is a residence where the homeowner resides for over 185 days during a calendar year.

Sublease Hardship Exemption. Upon application, the city manager may grant a hardship exemption in connection with the sublease surcharge, which exemption shall last for a term of one year. At the expiration of any particular term of the exemption, the applicant may apply to renew the one-year term by again establishing qualification for the exemption. The application and renewal application shall be in the forms provided by the city manager with a copy to the park owner and, shall include sufficient evidence to establish whether the applicant qualifies for an exemption pursuant to this section and shall be signed by the applicant under penalty of perjury. The city manager shall grant the exemption for any qualified applicant.

Qualification. To qualify for the sublease hardship exemption, the applicant must satisfy all of the following criteria:

The applicant must own a mobilehome at the applicable park, and must have occupied the mobilehome as his or her primary residence for a minimum of three years prior to applying for this exemption.

The applicant must present adequate evidence that he or she would qualify for the Low Income Rate Payer Assistance Program for Submetered Households.

The combined value of assets owned by the applicant must not exceed $150,000 excluding the value of the mobilehome itself.

No person other than the applicant can declare the applicant as a dependent for purposes of federal or state taxes.

In the event that the applicant, after receiving the hardship exemption, at any time ceases to satisfy all of the foregoing criteria, from that point on, the applicant will not be qualified to receive, and shall not receive, the hardship exemption.

Effect of Exemption. Each applicant who qualifies for the hardship exemption shall be exempt from the sublease surcharge provided in subsection D of this section. (Prior code § 6708; Ord. 48U § 1, 1991; Ord. 74 § 3, 1992; Ord. 115U § 3, 1994; Ord. 121 §§ 2—4, 8, 9, 1994)
§ 5.16.100. Rent adjustments—Commission review.

In order to implement a rent increase as permitted under Section 5.16.090 of this chapter or a rent decrease based on a reduction of housing services, the applicant must file with the 10/10/24, 5:21 PM City of Malibu, CA MOBILEHOME PARK RENT CONTROL REGULATIONS https://ecode360.com/print/MA5043?guid=44332271 8/16
12 2.

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commission a proposed rent schedule on the form provided by the commission. Any proposed capital improvement to be passed through to homeowners must be approved by the commission after the park owner files an application showing the amount of the expense, the amount to be passed through and proof of a majority vote in favor of the special and limited rent increases.

Where the park owner is the applicant, the park owner shall serve each affected homeowner, either personally or by mail, with written notice of the proposed increase, in accordance with state law, and with notice that a request for approval of same is being filed with the commission. Where a homeowner (or homeowners) is the applicant, the homeowner shall serve the affected park owner by mail or personally at the address and to the person designated in the registration form submitted by the park owner to receive notices on behalf of the park owner. The applicant shall file proof of such service with the commission concurrent with the filing of the rent increase or decrease application. Copies of the rent schedule, request for increase and supporting documentation shall be available to any homeowner requesting same at the park owner's office in the affected mobilehome park.

If the city determines that the application is not complete, accurate, or not in compliance with this chapter, within 21 days of the date on which the application was filed, the city shall give written notice of the deficiencies to the applicant.

The city shall set a hearing on any request complying with the requirements of this chapter no sooner than 50 days and no later than 70 days after the application is accepted as complete. The city shall send written notice to the park owner, who shall post such notice in a conspicuous place, of the time and place set for the hearing. If the commission approves an increase as requested, or lower than requested, the same shall take effect as noticed by the owner or as the commission may otherwise direct.

In the application for rent adjustment under this chapter, the park owner shall indicate which, if any, of the mobilehome spaces are covered by leases or contracts which provide for more than a month-to-month tenancy, together with expiration date of each such lease or contract. Any rent increase approved by the commission under this chapter shall not be applicable to spaces covered by such leases or contracts during the term of such leases or contracts.

Homeowner(s) in a mobilehome park may initiate commission review of a proposed land rent increase by filing with the city clerk a written petition. The petition shall be in substantially such form and contain such information as may be required by the commission. (Prior code § 6710; Ord. 48U § 1, 1991; Ord. 116 § 2, 1994) § 5.16.110. Review hearings.

All review hearings conducted by the commission shall be open to the public.

All parties to the hearing may have assistance from an attorney or such other person as may be designated by the parties in presenting evidence or arguing their position. All witnesses shall be sworn in and all testimony shall be under penalty of perjury.

In the event that either the park owner or the homeowner(s) should fail to appear at the hearing at the specified time and place, the commission: may hear and review such evidence as may be presented and make such decisions as if both parties had been present.

All review hearings shall be tape-recorded. Tapes shall be preserved for six months, or longer, if requested by either party affected by the hearing.

The commission may promulgate regulations to effect the purpose of this section and to assure fair hearings.
(Prior code § 6711; Ord. 48U § 1, 1991)
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13 A.

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3. 4.

F.
§ 5.16.120. Rent adjustments—Commission decision authority.

The commission's decision shall be based on the preponderance of the evidence at the hearing. All parties to the hearing shall be advised of the commission's decision and given a copy of the findings upon which the decision is based.

Consistent with its findings, the commission may:

Permit the requested increase to become effective, in whole or in part; Deny the increase;
If circumstances justify, order a reduction in rent to a rate determined by the commission; or Order that the park owner reimburse the applicant(s) the full amount, or any part of the amount, of the application fee where: (a) the applicant for a rent reduction was successful; (b) the park owner has not proven that the rent reduction ordered or the award of costs would deprive the park owner of a fair return as defined in this chapter; and (c) circumstances otherwise warrant the award of costs to the applicant.

If the commission finds that an increase that went into effect, or any portion thereof, is not justified, the park owner shall refund the amount found to be unjustified to the homeowner within 60 days after the decision of the commission is announced.

If the commission finds that a proposed increase, or any portion thereof that was previously inoperative, is justified, the homeowner shall pay the amount found justified to the park owner within 60 days after the decision of the commission is announced.

The conclusions and findings of the commission shall be final.

Any party disputing the final conclusions and findings of the commission may seek review of the commission's actions pursuant to Sections 1094.5 and 1094.6 of the California Code of Civil Procedure.
(Prior code § 6713; Ord. 48U § 1, 1991; Ord. 135 § 1, 1995) § 5.16.130. Hearing—Evidence and procedural irregularities.

Formal rules of evidence or procedure which must be followed in court shall not apply to commission proceedings, except to the extent that the commission shall determine. No action of the commission hereunder shall be held void or invalid or be set aside by any court on the grounds of any improper admission or rejection of evidence, or by reason of any error, irregularity, informality, neglect or omission (hereinafter called "error") as to any matter pertaining to applications, notices, findings, records, hearings, reports, recommendations, or any matters of procedure whatever, including but not limited to those included in this section, unless after an examination of the entire case, including the evidence, the court shall be of the opinion that the error complained of was prejudicial, and that by reason of such error the party complaining or appealing sustained and suffered substantial injury, and that a different result would have been probable if such error had not occurred or existed. There shall be no presumption that error is prejudicial or that injury was done if error is shown. (Prior code § 6714; Ord. 48U § 1, 1991)
§ 5.16.140. Implementation guidelines.

After a noticed-public hearing, as it deems necessary, the city council may adopt by resolution guidelines to aid in the implementation of this chapter. (Prior code § 6715; Ord. 48U § 1, 1991)
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§ 5.16.150. New and prospective homeowners.

Prior to or at the time of agreeing to rent spare to a new homeowner in a mobilehome park, the owner shall provide each new homeowner or prospective homeowner with a copy of the mobilehome park rent stabilization ordinance, as currently in force.

No owner may require, directly or indirectly, that any resident or prospective resident sign a lease or rental agreement that provides that it shall be exempt from local rent control or provides for space rent in excess of that permitted by this chapter as a condition of tenancy in the park and no owner may deny a tenancy to a prospective purchaser of a mobilehome in the park on the ground that the prospective purchaser will not sign such a lease or rental agreement.

The notice shall contain a place for the homeowner to acknowledge receipt of the notice. The park owner shall sign an acknowledgment that the required notice has been given to the homeowner and provide the homeowner with a copy of the executed acknowledgment. (Prior code § 6716; Ord. 48U § 1, 1991; Ord. 74 § 1, 1992) § 5.16.160. Homeowner's right of refusal.

A homeowner may refuse to pay any increase in rent which is in violation of this chapter. Such refusal to pay shall be a defense in any action brought to recover possession of a mobilehome space or to collect the rent increase.
(Prior code § 6717; Ord. 48U § 1, 1991)
§ 5.16.170. Retaliatory eviction.

Notwithstanding Section 5.16.160, in any action brought to recover possession of a mobilehome space, the court shall consider as grounds for denial any violation of any provision of this chapter. Further, the determination that the action was brought in retaliation for the exercise of any rights conferred by this chapter shall be grounds for denial. Any action brought within one year of a petition or complaint filed with the commission by the homeowner pursuant to this chapter shall be presumed to be retaliatory; this presumption affects the burden of proof, and is rebuttable by the park owner. (Prior code § 6718; Ord. 48U § 1, 1991)
§ 5.16.180. Violation—Civil remedies.

If any park owner demands, accepts, receives or retains any payment of rent in excess of the maximum lawful space rent, as determined under this chapter, then the homeowners in such mobilehome park affected by such violation, individually or by class action, may seek relief in a court of appropriate jurisdiction for injunctive relief and damages. The prevailing party will recover costs and reasonable attorneys' fees as part of any court judgment.
(Prior code § 6719; Ord. 48U § 1, 1991)
§ 5.16.190. Violation—Penalty.

Any person violating any provision, or failing to comply with any requirement of this chapter shall be guilty of a misdemeanor. Any person convicted of a misdemeanor under the provisions of this chapter shall be punished by a fine of not more than $500 or by imprisonment for a period of not more than six months, or by both. Each violation of any provision of this chapter, and each day during which any such violation is committed, permitted or continued, shall constitute a separate offense. (Prior code § 6720; Ord. 48U § 1, 1991)
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15 A.

1. § 5.16.200. Just and reasonable return.

A park owner may file a rent adjustment application for one, some or all the spaces in a mobilehome park in order to establish the maximum allowable rent or to achieve a fair and reasonable return.

Homeowners may file a rent adjustment application based on reduction in services or other grounds established by this-chapter or regulations promulgated pursuant thereto. Nothing in this chapter shall be construed to prevent the grant of a rent adjustment upon application by a park owner when required to permit a fair and reasonable return to the park owner. The city shall receive relevant evidence, in accordance with applicable regulations, demonstrating that a landlord is not receiving a fair and reasonable return in determining these applications.
(Prior code § 6721; Ord. 48U § 1, 1991; Ord. 115U § 4, 1994) § 5.16.210. Mobilehome park relocation impact reports.

Statement of Purpose. The purpose of this section is to implement the provisions of state law addressing the adverse impacts on the residents and homeowners in a park which is converted, closed or where the park's use is changed or ceased.

Definitions. For purposes of this section, the following definitions shall apply in addition to those listed in Section 5.16.020.
"Advisory agency" means the planning department, commission, or hearing officer as designated by the city council.
"Change of use" means a use of a mobilehome park for a purpose other than the rental, or the holding out for rent, of two or more mobilehome sites to accommodate mobilehomes for human habitation. "Change of use" includes, but is not limited to, a change of the park or any portion thereof to a condominium, stock cooperative, or any form of ownership wherein spaces within the park are to be sold, and the cessation of use of all or a portion of the park, whether immediately or on a gradual basis, or the closure of the park. "Change of use" shall not include mere purchase of the park by its existing homeowners.
"Comparable housing" means housing which is comparable in floor space area, deck and lot size, and number of bedrooms and other relevant factors to the mobilehome to which comparison is being made, which housing meets the minimum standards of the State Uniform Housing Code. "Comparable mobilehome park" means any other mobilehome park substantially equivalent in terms of park condition, amenities, ocean views and beach access and other relevant factors. "Date of application for change of use" means the date of filing of an application for rezoning, general plan amendment, use permit, site development permit or other discretionary development approval under this code, which application seeks approval of a change of use of a mobilehome park or the date of the closure or cessation of use.
"Eligible homeowner" means a homeowner whose mobilehome or manufactured home was located in a mobilehome park on the date of the application for a change of use.

General Requirements.

Any person who files an application for a rezoning, general plan amendment, subdivision map, use permit, site development permit or for any other discretionary development approval, for the purpose of a change of use of a mobilehome park or closure, shall file with the advisory agency a report on the impact of the conversion, closure, or cessation of use (hereinafter "closure") upon the residents of the mobilehome park who will be displaced, no later than the filing of the first such application necessary to authorize such closure. 10/10/24, 5:21 PM City of Malibu, CA MOBILEHOME PARK RENT CONTROL REGULATIONS https://ecode360.com/print/MA5043?guid=44332271 12/16
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1. 2.
a.
b.
c.
d.
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f.
g.
i.
ii.
iii.
iv.

3. a.

No application shall be considered or deemed completed or processed for consideration and approval unless and until such conversion impact report shall have been filed as required by this subsection.

Use of a property as mobilehome park shall not be terminated for the purpose of conversion to another land use or cessation of use until approval by the advisory agency and the city council, or appeal, has been received.

No building permit shall be issued on property occupied by a mobilehome park at the effective date of this chapter or hereinafter for uses other than those associated with the mobile home park use and allowed under the special use permit, until approval under this section has been received.

Conversion Impact Report.

The conversion impact report shall address the availability of adequate replacement housing in mobilehome parks and the cost of relocating displaced residents.

In order to evaluate adequately and address those issues, the conversion impact report shall contain the following information:

The names, addresses and mobilehome site identification numbers of all persons owning mobilehomes within the mobilehome park and of all mobilehome residents on the date of application for change of use;
The age, including date of manufacture, of each mobilehome within such park, including the type of mobilehome, width characteristics, size, and number identifying the mobilehome site being occupied;
A list of vacant mobilehome sites in comparable mobilehome parks within a 50 mile radius of the park which is the subject of the application or request; The list shall contain a schedule of site rental rates for each park listed and the criteria of the management of each park for acceptance of new homeowners and used mobilehomes;
The names, addresses and telephone numbers of one or more housing specialists from the list compiled by the advisory agency, and the names, addresses and telephone numbers and fee schedules of persons qualified as mobilehome movers and of persons who are qualified appraisers of mobilehomes and an explanation of the services the housing specialists will provide;
The applicant may designate other housing specialists, and mobilehome movers and appraisers; provided, that use of any such persons pursuant to this chapter shall be subject to approval by the advisory agency;
A relocation plan which will include:

Timetable for implementing the physical relocation of mobilehomes, Implementation of relocation assistance,
Payment of relocation costs, and
Conversion of the park to one or more other uses.

The application shall include within the conversion impact report the steps proposed to mitigate any adverse impact on the ability of displaced homeowners to find adequate housing in a mobilehome park, including the reasonable costs of relocation.

All eligible homeowners and all mobilehome tenants of eligible homeowners shall be provided with the services of one or more housing experts to assist them in relocating to 10/10/24, 5:21 PM City of Malibu, CA MOBILEHOME PARK RENT CONTROL REGULATIONS https://ecode360.com/print/MA5043?guid=44332271 13/16
17 i.
ii.
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1. 2.

3. 4.

5. F.
available and adequate housing upon their request. Any such experts shall be those approved pursuant to this section.

A factor to be considered is that the conversion will not result in the displacement of low-income individuals or households who cannot afford rents charged in other parks.

A factor to be considered is it the conversion is to another residential use, the homeowners have first opportunity to occupy and the construction schedule will not result in long-term displacement.

No benefits shall be provided to any person who is renting a mobilehome from the owner of the mobilehome park where such person shall have executed a written agreement with such mobilehome park owner waiving his or her rights to any such benefits. No such waiver shall he valid unless it contains the text of this section, and unless such person shall have executed a written acknowledgment that he or she has read and understands his or her rights pursuant to this chapter and knowingly agrees to waive them.

In order to facilitate the intentions of the homeowners or tenants and an applicant for a change of use with regard to a change of use, the parties may agree to mutually satisfactory relocation assistance. To he valid such an agreement shall be in writing, shall include a provision stating that the homeowner is aware of the provisions of this chapter, shall include a copy of this chapter as an attachment, shall include a provision in at least 10 point type which clearly states the right to seek and the importance of obtaining an attorney's advice prior to signing the agreement, and shall be drafted in form and content otherwise required by applicable state law. Any person signing such an agreement may rescind it in writing within 10 business days of final approval of change of use. Any such agreement which is procured by fraud, misrepresentation, coercion or duress of any kind shall be void and unenforceable.

Hearing and Notice.

Upon the receipt of an impact report, within 30 days the advisory agency shall examine the same and advise the applicant whether it is complete. When a complete impact report has been filed and accepted by the advisory agency, within 30 days the advisory agency shall set a time, place and date for a hearing.

At least 30 days prior to the hearing, the advisory agency shall mail notice to the applicant and the homeowners of the date, time and place of the meeting.

At least 15 days prior to the scheduled public hearing before the advisory agency on the conversion impact report, the applicant shall provide the homeowner and all other persons described with a copy of this chapter, a copy of the conversion impact report, and date and time for an informational meeting pursuant to subsection (E)(4) of this section.

Not less than 10 days prior to the date of the scheduled public hearing before the advisory agency, the applicant shall conduct an informational meeting for the residents of the mobilehome park regarding the status of the application, the timing of proposed relocation of residents, proposed relocation costs and assistance, and the contents of the conversion impact report. The meeting shall be conducted on the premises of the mobilehome park. The housing specialist(s) designated in the impact report shall be present at such meeting.

Within five days prior to the public hearing, the applicant shall file with the advisory agency a statement made under penalty of perjury that all requirements pursuant to subsections (E)(3) and (4) of this section have been complied with and include date, time, and place where such meeting as required by subsection (E)(4) of this section occurred.

Findings and Decision. At the conclusion of the hearing, the advisory agency shall render its decision. The advisory agency shall approve, conditionally approve or disapprove the relocation impact report. The advisory agency shall approve the relocation impact report if it finds that the relocation impact report contains the information required pursuant to this section. In approving the 10/10/24, 5:21 PM City of Malibu, CA MOBILEHOME PARK RENT CONTROL REGULATIONS https://ecode360.com/print/MA5043?guid=44332271 14/16
18 G.

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3. K.

L.
relocation impact report, the advisory agency may impose such conditions as it finds necessary to mitigate the adverse impacts on the residents; however, any steps required to be taken by the park owner pursuant to this section shall not exceed the reasonable costs of relocation. Notice of the advisory agency action shall be mailed to the park owner, to all homeowners and to all persons who have filed written request therefor.

Request for Appeal. The park owner or any homeowner may appeal the advisory agency's decision to the city council. The appeal shall be filed with the city on a form provided for that purpose within 10 days after the action of the advisory agency. When an appeal is filed, it shall be accompanied by a fee in an amount determined according to Section 5.16.070. The city shall, within 45 days, set a time and date for a hearing, and shall mail written notice of such hearing to the park owner, all homeowners, the person requesting the hearing, the advisory agency and all persons who have filed written request therefor, at least 15 days prior to the hearing.

For all requests for hearing, the city council may sustain, modify, reject or overrule any recommendations or rulings of the advisory agency and may make such findings as are not inconsistent with the provisions of this section.

Extensions. Any of the time limits specified in this section may be extended by mutual consent of park owner and the advisory agency, or the city council, on appeal, with notice to affected homeowners, except where prohibited by state law.

Expiration and Extension of Relocation Impact Report. The approval of a relocation impact report shall become null and void after 36 months from the date of the mailing of the final approval of the relocation impact report. Thereafter, the park owner shall not convert, close or cease the use of the park until such time as a new relocation impact report is approved. However, upon application of the park owner, filed with the advisory agency on or before the date of expiration, the relocation impact report may be extended by the advisory agency up to an additional 36 months. An application for an extension shall be subject to the notice and hearing procedures of this section.

Conditions. In the approval of a mobilehome park conversion, the city may attach conditions deemed reasonable in order to mitigate the impacts associated with the conversion. Such conditions shall not be limited to, but may include, the following:

If the land occupied by the park is to be sold, the homeowners shall be given the right of first negotiation (from the seller) and matching rights (right of last refusal) for the purchase of the park and all the improvements.

The homeowners be given the option of a long-term lease of the land and purchase of the improvements.

The city may attach an effective date upon their approval of the conversion. This date will provide sufficient time for the relocation of the mobilehome to other parks.

Revocation and Amendment. Any time prior to the closure of the mobilehome park, the advisory agency may, in its discretion, and upon good cause shown, initiate proceedings for the revocation or amendment of an impact report. Good cause may include, but is not limited to, change of circumstances which render the conditions or requirements of the relocation impact report no longer necessary or appropriate, negligent or fraudulent misrepresentation of fact relating to the relocation impact report, or noncompliance with the conditions of the impact report. Prior to revoking or amending a relocation impact report, the advisory agency shall conduct a hearing in accordance with the applicable procedures set forth in subsection E of this section. Upon revocation, the park owner shall not convert, close, cease or change the use of the park until such time as a new relocation impact report is approved. Such revocation or amendment is subject to the same request for hearing as is provided in subsection G of this section.

Evictions Pending Compliance with Relocation Impact Report. Termination of a tenancy of any resident pursuant to Civil Code Section 798.56 or any other provision of law shall not relieve the park owner of its obligation to comply with the conditions or requirements of the relocation impact report applicable to that resident. However, if the termination of tenancy is based on subdivisions 10/10/24, 5:21 PM City of Malibu, CA MOBILEHOME PARK RENT CONTROL REGULATIONS https://ecode360.com/print/MA5043?guid=44332271 15/16
19 M.

1. 2.

3. 4.

P.
(a), (b), (c), (d), (e) or (f) of Section 798.56 of the Civil Code, the advisory agency, upon request by the park owner, may grant to the park owner extensions of time within which to comply with the conditions of the relocation impact report.

Additional Authority of the Advisory Agency. If, notwithstanding the fact that the park owner has not served a six months' or 12 months' notice on the residents, the advisory agency finds that the park owner is attempting to close or convert a park, then the advisory agency shall require the filing of a relocation impact report.

Obligations of Applicant After Approval of Conversion Impact Report. After the date of determination that the conversion impact report complies with the requirements of this chapter, the applicant shall undertake or be responsible for performance of the following obligations:

Not later than 30 days from the date of such determination, the housing specialist or specialists shall make personal contact with each homeowner of the mobilehome park and commence consultations to determine the applicable costs and assistance to be provided. The housing specialist or specialists shall give each homeowner and former resident eligible to receive relocation assistance written notice of his or her rights to relocation assistance as determined by the city under this chapter.

Not less than 120 days prior to the date any homeowner is required to vacate the mobilehome park, any cash or monetary relocation costs required by this chapter shall be paid to such homeowner, to any former resident eligible for such costs, or to any person, firm or corporation performing relocation related services for the homeowner, as the homeowner may direct. If the applicant purchases the mobilehome the homeowner shall be required to promptly submit to the applicant all documents necessary to transfer complete title and ownership of such mobilehome to the applicant, free and clear of all security interest, liens, or other encumbrances.

The date upon which any resident of the mobilehome park is required to vacate such park, or upon which any mobilehome is required to be removed from the mobilehome park, shall be not less than six months from the date of notice of termination of tenancy pursuant to Civil Code Section 798.56(f)).

If the owner of the mobilehome park, the applicant homeowner or tenant specifically requests that any of the time limitations required by this section be modified, the city shall consider any such modification and evidence relating to the need therefor at the public hearing on the conversion impact report. The city shall have the power to make modification in such time limits, both in response to a request and on its own motion, in conjunction with any approval of a conversion impact report, as the city may deem just and reasonable.

Payment of Relocation Assistance Benefits—Prerequisite to Issuance of Building Permit to Redevelop Park. No building permit shall be issued for the development of any real property which has been or is being converted from a mobilehome park pursuant to this chapter unless and until the applicant or the owner of the property, as the case may be, who is responsible for payment of any required monetary relocation assistance, shall have filed with the advisory agency a verified statement made under penalty of perjury that relocation assistance payments required pursuant to this chapter have been paid. Such statement shall specify in itemized form each payee, the amount paid, the date of payment, and the type of relocation or other assistance for which each such payment was made.

Violations. Violations of this section shall constitute a misdemeanor. In addition, any park owner or applicant who violates any rights of any homeowner or mobilehome tenant established under this chapter shall be liable to the person for actual damages caused by such violation, plus costs and reasonable attorneys' fees. No park owner shall take any wilful action to threaten, retaliate against or harass any park resident with the intent to prevent such residents from exercising his or her rights under this chapter.
(Prior code § 6723; Ord. 48U § 1, 1991; Ord. 74 §§ 4—9, 1992) 10/10/24, 5:21 PM City of Malibu, CA MOBILEHOME PARK RENT CONTROL REGULATIONS https://ecode360.com/print/MA5043?guid=44332271 16/16
20 Mobilehome Park Rent
Stabilization Commission
Agenda Report
Mobilehome Park
Rent Stabilization
Commission Meeting
03-13-08
Item

5.A.

To: Members of the Mobilehome Park Rent Stabilization Commission Approved by: Christi Hogin, City Attorney
Date prepared: March 3, 2008 Meeting date: March 13, 2008 Subject: Commissioner Orientation
RECOMMENDED ACTION: No action required.

DISCUSSION: One of the first orders of business when the City of Malibu incorporated in 1991 was to develop a mobilehome park rent stabilzation ordinance to replace the ordinance that governed the unincorporated areas of the County. The Mobilehome Park Rent Stabilization Commission is charged under the City's ordinance with hearing applications for rent increases and rent decreases in accordance with the provisions of the ordinance.

THE LEGAL LANDSCAPE: Mobilehome parks offer a hybrid of home ownership and home rental. A tenant in a mobilehome park owns the trailer or mobilehome itself and rents the space on which it sits. The park provides access and sometimes other amenities such a recreation room, a swimming pool, landscaping and security. "Mobilehome" is really a misnomer because the structures, as a practical matter, are not really mobile. They are manufactured homes which do not have traditional foundations.

They are constructed in a factory and delivered to the site, whole or in parts; however, after delivery, their traveling days are pretty much over. Most mobilehomes lose value with age (like a car would) and few older mobilehomes could withstand relocation. There is a shortage of available park spaces in most communities; so, even if a mobilehome physically could be moved, it is unlikely to have a place to go (at least not to another park).

As a practical matter, if someone elects to sell his mobilehome, it is sold in place and the new owner assumes the lease or acquires a right to rent the space in the park where the

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H:\Mobilehome Park Rent Stabilzation Commission\Agenda Reports\080313 CommissionerOrientation_CH.doc Item 5.A.

ATTACHMENT 3
21 mobilehome sits. Because spaces are in short supply, tenants are in certain respects at the mercy of the park owner. As a result, in addition to the City's rent stabilzation ordinance, extensive state laws govern this area and protect park residents in certain respects. Mobilehome parks are regulated by the Mobilehome Park Residency Law.

California Civil Code, sections 789-799.7.1 The City does not have jurisdiction to enforce these laws. These laws define rights that are subject to enforcement by courts.

Under the state law, park owners may terminate a tenancy in a park only for one or more of the following reasons:
.. The owner of the mobile home has failed to comply with local ordinances and state laws relating to mobile homes.
· The conduct of the mobile home owner within the mobile home park constitutes a serious annoyance to other mobile home owners.
· The mobile home owner fails to comply with the reasonable rules of the mobile home park, established by the management in the rental agreement at the start of tenancy, or amended with the consent of the mobile home owner (or without their consent, upon six month's written notice.
· Nonpayment of rent, utilty charges, or reasonable incidental service charges. · Criminal felony drug conviction for activities at the mobile home park.

A 60-day written notice to terminate a tenancy is required for both the landlord and the mobile home owner. The landlord must specify one of the above reasons for terminating a tenancy. Thus, unlike a typical property owner, a park owner may not evict a mobilehome owner without one of these specific, enumerated causes.

The State of California has a Mobilehome Ombudsman that receives and processes complaints related to living in manufactured homes and mobilehomes. The state offce provides information and other assistance to help resolve complaints generally related to the operation of mobilehome parks related to health and safety matters; the purchase, sale, financing, titling and registration of manufactured homes and mobilehomes; and the installation, inspection, and maintenance or alteration of manufactured homes, mobilehome accessory structures, and park grounds.

State law also provides that the park owner must furnish the mobile homeowner with a copy of the park' rules, a list of services provided, and a copy of the Mobile home Residency Law at the beginning of the residency.

Under state law, rental agreements for mobilehome parks must contain the following:
i Tenants renting a mobile home from the mobile home owner are not governed by the Mobile home Residency Law, but by California landlord-tenant laws and civil codes. The Mobile Home Residency Law governs the relationship between the Park Owner and the Mobile Homeowner.

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H:\Mobilehome Park Rent Stabilzation Commission\Agenda ReportS\O~~3~3 CommissionerOrientation_CH.doc Item 5.A. 22 1. A provision stating that it is the responsibility of the management to maintain the common areas in good condition;

2. A description of the physical improvements to be provided during tenancy;

3. A list of services that wil be provided during the length of the tenancy;

4. A statement that the owner or manager must meet with the tenants to discuss changes in the park. A 10-day written notice of such a meeting is required. This applies to changes in park rules, maintenance of physical improvements, and any alteration or deletion of services, equipment or physical improvements.

In certain respects, the state law preempts the City's rent stabilization ordinance. Local rent stabilization laws cannot apply to spaces that have been given a long term lease which meets certain legal requirements or in a park constructed after a certain time.

These laws generally mean that the City's ordinance does not benefi all spaces in a given park. Any spaces in a park that are governed by long term leases would be exempt from rent stabilzation.

Courts have upheld exercise of local police power to regulate rents in mobilehome parks where the law is rationally related to a legitimate government purpose, such as maintaining affordable housing, and where the regulations afford the property owner a fair and reasonable rate of return. Generally speaking, rent stabilzation ordinances cap a rent on a certain date, assume that it is a fair rent since it was charged in a free market and provide for limited increases to that rent over time in order to keep pace with inflation. Commonly this amounts to the right of park owners to increase the rent in accordance with the Consumer Price Index. In addition, any rent stabilization ordinance must provide for a mechanism for park owners to seek rent increases where they no longer believe that they are receiving a fair return on their investment.

One of the most contentious aspects of mobilehome park rent control involves what is called "vacancy control." Some rent stabilzation ordinances provide that rent may be raised to "market rates" whenever a mobilehome is sold; other ordinances, like Malibu's, provide that the rent-controlled rate carries over to the buyer. The City's purpose in maintaining vacancy control is to keep rents affordable and limit increases to keep with inflation. However, there is an unintended affect that has been the source of considerable litigation and controversy in this area of law. Park residents/homeowners benefi when the controlled rents carry over to the subsequent tenant. Although a mobilehome itself may have depreciated as a physical asset, the right to occupy a rentcontrolled space positively influences the value of the sale. Thus, the homeowner is able to sell both the mobilehome and its right to be on the rent-controlled space for considerably more than the mobilehome alone might fetch on the open market. Park owners bitterly complain that this unfairly transfers the value of their land to the tenant.

Park owners assert that in the purchase price the tenant is in essence receiving value for the land, which he does not own. Park owners also argue that this phenomenon

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H:\Mobilehome Park Rent Stabilization Commission\Agenda Reports\080313 CommissionerOrientation_CH.doc -3- Item 5.A.
23 (tenants being able to sell their mobilehomes for enhanced prices due to rent control) undermines a city's objective of maintaining affordable housing because rent control increases the price of the mobilehome and makes the park less affordable to low income families to buy a home there. On balance, the Malibu City Council determined that rent stabilzation contributed significantly to maintaining affordable housing but to balance the issues the City allows for an increase in rent of 15% upon vacancy.

THE ORDINANCE: The City's rent stabilzation ordinance is set forth at Chapter 5.16 of the Municipal Code and a copy is attached to this report. (Attachment 1) Basically, the Commission is charged with processing applications for rent increases or rent decreases. Under the ordinance, a space rent for those spaces governed by the ordinance (e.g. those not subject to a long term lease that complies with state law) may be automatically adjusted annually by CPI up to 5% (ceilng) and at least by 2% (floor).

This is called a "formula Increase" in the ordinance.

In addition to the annual CPI, the ordinance provides that space rent may be increase up to an additional 15% upon the sale of the mobilehome. This is referred to as a "vacancy increase." There are a few other situations in which a space rent may be increased should the park owner be required by the government to provide services beyond those provided at the time the ordinance was enacted and where the space is being subleased, although the ordinance allows for a hardship exemption.

The Commission's role is to conduct hearings and reach decisions on applications by the park owner for rent increases to achieve a fair return or applications by mobilehome owners for decreases when housing services have been eliminated. The specifics of how these applications are processed are set forth in the Commission Regulations, whjch are attached to this staff report. (Attachment 2) Consistent with its function, the Commission meets when an application is filed with the City under the ordinance. In accordance with governing law, the City is subject to specific time periods in which to act on a rent increase application.

In addition to processing rent adjustment applications, should a park seek to close or convert its use, the City has adopted an ordinance that implements the provisions of state law addressing the adverse impacts on the residents and homeowners in a park which is converted, closed or where the park's use is changed or ceased. Under these circumstances, park owners are required to prepare a conversion impact report and a relocation plan, which this Commission wil review for compliance.

THE COMMISSION: The Commission is regulated by the Brown Act, which is California's government in the sunshine law. It is found in the California Government Code beginning at Section 54950 and a copy is attached to this staff report. (Attachment 3) In a nutshell, it requires local government business to be conducted at open and

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H:\Mobilehome Park Rent Stabilzation Commission\Agenda Reports\080313 CommissionerOrientation_CH.doc -4- Item 5.A.
24 public meetings, except in certain limited situations which do not apply to the Commission. The Brown Act is based upon state policy that the people must be informed so they can keep control over their government.

The central provision of the Brown Act requires that all meetings of a public body be open and public. The Brown Act definition of the term "meeting" (Section 54952.2) is a very broad definition that encompasses almost every gathering of a majority of Commission members:

Any congregation of a majority of members of a legislative body (which includes the Commission) at the same time and place to hear, discuss, or deliberate upon any item that is within the subject matter jurisdiction of the legislative body or the local agency to which it pertains.

In plain English, this means that a meeting is any gathering of a majority of members to hear or discuss any item of mobilehome park rent stabilzation business or potential business.

There are six specific types of gatherings that are not subject to the Brown Act: (1) individual contacts; (2) seminars and conferences; (3) community meetings that are open to the public and publicized; (4) other commissions or city council meetings; (5) social or ceremonial occasions; and (6) standing committees (although the Commission is not likely to have any subcommittees). Unless a gathering of a majority of members falls within one of these exceptions, if a majority of members are in the same room and merely listen to a discussion of potential Commission business, then they wil be participating in a "meeting" governed by the Brown Act that requires notice, an agenda, and a period for public comment.

1. The Indjvjdual Contact Exceptjon
Conversations, whether in person, by telephone or other means, between a Commission member and any other person do not constitute a meeting (Section 54952.2(c)(1)).

However, such contacts may constitute a "serial meeting" in violation of the Brown Act if the individual also makes a series of individual contacts with other members of the legislative body for the purpose of "developing a collective concurrence." An explanation of what constitutes a "serial meeting" follows below.

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H:\Mobilehome Park Rent Stabilzation Commission\Agenda Reports\080313 CommissionerOrientation_CH.doc -5- Item 5.A. '.
25 2. The Semjnar and Conference Exception
The attendance by a majority of members at a seminar or conference or similar educational gathering is also generally exempted from Brown Act requirements (Section 54952.2 (c)(1)). This exception, for example, would apply to attendance at a California League of Cities seminar. However, in order to qualify under this exception, the seminar or conference must be open to the public and be limited to issues of general interest to the public or to cities. Finally, this excep.tion wil not apply to a conference or seminar if a majority of members discuss among themselves items of specific business relating to their own city, except as part of the program.

3. The Communjty Meetjng Exceptjon
The community meeting exception allows members to attend neighborhood meetings, town hall forums, chamber of commerce lunches or other community meetings sponsored by an organization other than the city at which issues of local interest are discussed (Section 54952.2(c)(3)). However, members must observe several rules that limit this exception. First, in order to fall within this exception, the community meeting, must be "open and publicized." Therefore, for example, attendance by a majority of a body at a homeowners association meeting that is limited to the residents of a particular park and only publicized among members of that development would not qualify for this exemption. Also, as with the other exceptions, a majority of members cannot discuss among themselves items of Commission business.

4. The Other Legislative Body Exceptjon
This exception allows a majority of Commission members to attend meetings of the city councilor other city commissions without treating such attendance as a meeting of the Commission (Section 54952.2(c)(4)). Of course, as with other meeting exceptions, the members are prohibited from discussing city business among themselves.

5. The Socjal or Ceremonial Occasjon Exception
The Brown Act requirements do not apply to attendance by a majority of members at a purely social or ceremonial occasion provided that a majority of members do not discuss among themselves matters of public business (Section 54942.2(c)(5)).

6. The Standjng Committee Exception
Although it is unlikely that the Commission wil have a need for standing committees, this exception allows members of the Commission, who are not members of a standing committee of the body, to attend an open and noticed meeting of the standing committee

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Item 5.A.
26 without making the gathering a meeting of the full Commission itself. The exception is only applicable if the attendance of the Commission members who are not standing committee members would create a gathering of a majority of the legislative body; if not, then there is no "meeting." If their attendance does establish a quorum of the Commission, the members of the Commission who are not members of the standing committee may only attend as "observers" (Section 54952.2(c)(6)). This means that members of the Commission who are not members of the standing committee should not speak at the meeting, sit in their usual seat on the dais or otherwise participate in the standing committee's meeting.

In addition to regulating all gatherings of a majority of members of the Commission, the Brown Act also addresses prohibits certain contacts among individual members of legislative bodies. While the Brown Act specifically exempts individual contacts or conversations between a member of a legislative body and any other person (Section 54952.2(c)(1)), the Brown Act also prohibits a series of such individual contacts if they result in a "serial meeting" (Section 54952.2(b)).

A serial meeting is a series of meetings or communications between individuals in which ideas are exchanged among a majority of the Commission members through either one or more persons acting as intermediaries or through use of a technological device (such as a telephone answering machine, or e-mail or voice mail), even though a majority of members never gather in a room at the same time. Serial meetings commonly occur in one of two ways; either a staff member, a member of the body, or some other person (applicant, resident) individually contacts a majority of members of a body and shares ideas among the majority ("I've talked to Commissioners A and B and they wil vote 'yes.' Wil you?") or, without the involvement of a third person, member A calls member B, who then calls member C, and thus a majority of the body may have reached a collective concurrence on a matter.

To avoid ilegal serial meetings, I recommend the following guidelines be followed to avoid inadvertent violation of the serial meeting rule. These rules of conduct apply only when a majority of the Commission is involved in a series of contacts or communications. The types of contacts considered include contacts with City staff members, residents, park owners, attorneys and other members of the Commission.

1. Contacts with Staff
Staff can inadvertently become a conduit among a majority of a Commission in the course of providing briefings on agenda items. The Attorney General takes the position that individual staff briefings of a majority of the members of a body on substantive issues are necessarily ilegal seriatim meetings. While we do not agree with this highly restrictive interpretation, there is no doubt that staff briefings can easily become a

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H:\Mobilehome Park Rent Stabilzation Commission\Agenda Reports\080313 CommissionerOrientation_CH.doc -7- Item 5.A. 27 seriatim meeting if not handled carefully. To avoid an ilegal seriatim meeting through a staff briefing:
a. Individual briefings of a majority of members of a legislative body should be unidirectiònal, in that information should flow from staff to the member and the member's participation should be limited to asking questions and acquiring information.
b. Members should not ask staff to describe the views of other members of the body, and staff should not volunteer those views if known. c. Staff may present its viewpoint to the member, but should not ask for the member's views and the member should avoid providing his or her views unless it is absolutely clear that the staff member is not discussing the matter with a quorum of the Commission.

2. Contacts with Resjdents, Park Owners and Lobbyjsts
As with staff, a resident or lobbyist can also inadvertently become an intermediary who causes an illegal serial meeting. Residents' unfamiliarity with the requirements of the Act may create an issue unintentionally because they may expect a member of the Commission to be willng to commit to a position in a private conversation in advance of a meeting.

3. Contacts with other Commissioners
Direct contacts concerning Commission business with other Commissioners, whether through face-to-face or telephonic conversations, notes or letters, electronic mail or staff members, are the most obvious means by which an ilegal serial meeting can occur.

This is not to say that a member of a legislative body is precluded from discussing items of agency business with another member of the body outside of a meeting; as long as the communication does not involve a quorum of the body, no "meeting" has occurred.

There is, however, always the risk that one participant in the communication wil disclose the views of the other participant to a third or fourth member, creating the possibilty a serial meeting.

These suggested rules of conduct may seem unduly restrictive and impractical, and may make acquisition of important information more diffcult or time-consuming.

Nevertheless, following them wil help assure that your conduct comports with the Brown Act's goal of achieving open government. If you have questions about compliance with the Act in any given situation, please ask for advice.

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H:\Mobilehome Park Rent Stabilzation Commission\Agenda Reports\080313 CommissionerOrientation_CH.doc -8- Item 5.A. 28 Two key provisions of the Brown Act that ensure that the public's business is conducted openly are the requirements that legislative bodies post agendas prior to their meetings (Sections 54954.2, 54955 and 54956) and that no action or discussion may occur on items or subjects not listed on the posted agenda (Section 54954.2). Limited exceptions to the rule against discussing or taking action on an item not on a posted agenda are discussed below.

Meeting agendas must contain a brief general description of each item of business to be transacted or discussed at the meeting (Section 54954.2(a)). The description need not exceed 20 words. Each agenda must be posted in a place that is freely accessible to the public. Agenda posting requirements differ depending on the type of meeting to be conducted.

The assumption is that people decide whether to attend a meeting based on a review of its agenda in advance. If the Commission discusses an item that is not on the agenda, the Commission deprives the public of the opportunity to participate in the meeting. This is a very serious consequence and a Commission should be careful to stick strictly to the items on a posted agenda.

The Brown Act does create a bit of an awkward issue in this regard. While the Commission is strictly limited to discussing matters on an agenda, the Brown Act mandates that agendas for regular meetings allow for a general audience comment period in which the public can comment on any item of interest that is within the subject matter jurisdiction of the Commission which is not on the Commission's agenda. In other words, the Commission can only discuss matters on the agenda but the public may raise matters not on the agenda.

Under the law, the Commission may not take action or discuss any item that does not appear on the posted agenda (Section 54954.2).

There are two exceptions to this rule, but neither is likely to apply to the Commission.

The first is if the body determines by majority vote that an emergency situation exists.

The term "emergency" is limited to work stoppages or crippling disasters (Section 54956.5). This will never apply to the Commission because the Commission's jurisdiction is, limited to rent adjustment applications and relocation impact reports. The second exception is if the body finds by a two-thirds vote of those present, or if less than two-thirds of the body is present, by unanimous vote, that there is a need to take immediate action on an item and the need for action came to the attention of the local agency subsequent to the posting of the agenda (Section 54954.2 (b)). This means that if four members of a five-member body are present, three votes are required to, add the item; if only three are present, a unanimous vote is required. Again, this is unlikely to occur given that all the substantive issues of Commission business require noticed public hearings.

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H:\Mobilehome Park Rent Stabilzation Commission\Agenda Reports\080313 CommissionerOrientation_CH.doc -9- Item 5.A. 29 In addition to these exceptions, there are several limited exceptions to the no discussion on non-agenda items rule. Those exceptions are:
.. Members of the legislative body or staff may briefly respond to statements made or questions posed by persons during public comment periods; · Members or staff may ask questions for clarification and provide a reference to staff or other resources for factual information;
· Members or staff may make a brief announcement, ask a question or make a brief report on his or her own activities;
· Members may, subject to the procedural rules of the legislative body, request staff to report back to the legislative body at a subsequent meeting concerning any matter; and
· The Commission may itself as a body, subject to its rules of procedures, take action to direct staff to place a matter of business on a future agenda.

The Commission may not discuss non-agenda items under these exceptions. The comments must be brief. These exceptions do not allow long or wide-ranging question and answer sessions between the public and Commission or between Commissioners and staff.

When the Commission is considering whether to direct staff to add an item to a subsequent agenda, these exceptions do not allow the body to discuss the merits of the matter or to engage in a debate about the underlying issue.

The public must be afforded an opportunity to address the Commission on the matters on the agenda prior to or during the Commission's consideration of that item (Section 54954.3).

The Brown Act requires written material distributed to a majority of the body by any person to be provided to the public without delay. If the material is distributed during the meeting and prepared by the local agency, it must be available for public inspection at the meeting. If it is distributed during the meeting by a member of the public, it must be made available for public inspection after the meeting (Section 54957.5).

One problem in applying this rule arises when written materials are distributed directly to a majority of the Commission without knowledge of City staff, or even without the members knowing that a majority has received it. The law stil requires these materials to be treated as public records. Thus, it is a good idea for at least one Commissioner to

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H:\Mobilehome Park Rent Stabilzation Commission\Agenda Reports\080313 CommissionerOrientation CH.doc -10- - Item 5.A. 30 ensure that staff gets a copy of the document so that copies can be made for the city's records and for members of the public who request a copy.

There are both civil remedies and criminal misdemeanor penalties for Brown Act violations. The civil remedies include injunctions against further violations, orders nullfying any unlawful action, and orders determining the validity of any rule to penalize or discourage the expression of a member of the Commission (Section 54960.1). A member of the Commission wil not be criminally liable for a violation of the Brown Act unless the member intends to deprive the public of information to which the member knows or has reason to know the public is entitled under the Brown Act (Section 54959).

Because the Commission's primary responsibilty is to hold adjudicatory hearings, Commissioners are responsible for affording all interested parties due process of law.

Park owners and residents are entitled to reasonable notice, a meaningful opportunity to be heard, and an unbiased tribunaL. The provisions of the ordinance and the Brown Act assure that reasonable notice is given of all public hearings and meetings. The Commission's regulations carefully outline a hearing procedure to provide a meaningful opportunity for all parties to be heard. It is each Commissioner's responsibility, and the basis of the oath of offce administered to each Commissioner, to make decisions based on evidence in the record and, when unable to do that for whatever reason, to recuse himself from the matter.

Should a rent adjustment application be filed, additional training wil be provided in analyzing evidence and otherwise discharging you duties as an adjudicatory body.

PROP 98. As a final note, you may be aware that a proposition has qualified for the June 3, 2008 statewide ballot which would eliminate local rent control. If enacted by the voters, Prop 98 would apply to Malibu and prevent the City from imposing rent control on spaces after the sale of a mobilehome. Current residents would continue to enjoy the benefis of rent control. When they sell their mobilehomes, the buyer would not have the benefit of rent control.

ATTACHMENTS:

1. Malibu Municipal Code Chapter 5.16

2. Commission Regulations

3. Prior Code Cross-Reference Table

4. Copy of the Ralph M. Brown Act

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H:\Mobilehome Park Rent Stabilzation Commission\Agenda Reports\080313 CommissionerOrientation_CH.doc -11- Item 5.A. 31 Chapter 5.16

MOBILEHOME PAR RENT

CONTROL REGULATIONS
Sections:

5.16.010

5.16.020

5.16.030

5.16.040

5.16.050

5.16.060

5.16.070

5.16.080

5.16.090

5.16.100

5.16.110

5.16.120

5.16.130

5.16.140

5.16.150

5.16.160

5.16.170
Purpose of provisions.

Definitions.

Exemptions.

Mobilehome park rent
stabilization
commissionEstablishment and
organization.

Mobilehome park rent
stabilization
commission-Powers and
duties.

Registration.

Registration and
administrative fees.

Rent increasesCommission approvaL.

Rent increasesComputation and
determination.

Rent adjustmentsCommission review.

Review hearings.

Rent adjustmentsCommission decision
authority.

Hearing-Evidence and
procedural irregularities.

Implementation
guidelines.

New and prospective
homeowners.

Homeowner's right of
refusaL.

Retaliatory eviction.
-12-

5.16.180 Violation-Civil
remedies.

Violation-Penalty.

Just and reasonable
return.

Mobilehome park
relocation impact reports.

5.16.190

5.16.200

5.16.210

5.16.010 Purpose of provisions.

A. When the county of Los Angeles
adopted Chapter 8.57 of the Los Angeles
County Code (Ordinance No. 87-0228) to regulate mobilehome parks in the unincorporated areas of the county, the county found that there was within the county of Los Angeles a shortage of spaces for the location of mobilehomes. The area that is now the city of
Malibu was previously part of the unincorporated area of the county and was subject to Chapter 8.57 of the Los Angeles County
Code. The city of Malibu incorporated on
March 28, 1991. There continues to be a
shortage of mobilehome spaces in the area
that is now the city of Malibu. Because of this
shortge, there is a low vacancy rate and rents
are presently rising and causing concern
among a substantial number of mobilehome
park residents. Because of the high cost of
moving mobilehomes; the potential for damage resulting therefrom; the requirements relating to the installation of mobilehomes, including permits, landscaping and site preparation; the lack of alternative homesites for mobilehome residents; and the substantial investment of homeowners in such homes, a virtal monopoly exists in the rental of mobilehome park spaces, creating a situation where park owners have unbridled discretion and
abilty to exploit mobilehome park residents
and homeowners.

B. Homeowners are in the unique position
of having made a substantial investment in a
ATTACHMENT i
32 mobilehome that is situated on land that is
rented or leased. In this situation both the park
owner and the homeowner have a financial
stake in the relationship.

C. Additionally, because park space is
virtally unavailable and relocating diffcult
and costly, the closure of a mobilehome park
or its change of use has disastrous implications or results for homeowners, who may find it impossible to relocate to a comparable
park.

D. For these reasons, among others, the
city council finds and declares it necessary to
protect the owners and occupiers of mobilehomes from unreasonable rent increases, while at the same time recognizing the need of
park owners to receive a fair return on their
propert. In addition, the city council finds
that it is necessary to provide for the preparation and approval of reports evaluating the impact of changes of use of the parks and provide for measures to mitigate the impact on residents ofthese changes of use. (Ord. 48U
§ 1 (part), 1991: prior code § 6700)

5.16.020 Definitions.
"Allowable legal expenses" means attorney's fees and costs incurred in connection with successful good-faith attempts to recover
rents owing, and successful good-faith unlawful detainer actions not in derogation of applicable law, to the extent same are not recovered from homeowners. Attorney's fees and costs incurred in proceedings before the
commission, or in connection with civil actions against the commission, are not allowable as operating expenses. "Base rent" means: (1) for spaces not subject to a long term lease that complies with the provisions of Civil Code Section 798.17, the
space rent charged on March 28, 1991; and (2)
for spaces subject to valid long term leases on
March 28, 1991, which leases comply with the
provisions of Civil Code Section 798.17, the
last space rent charged under the long term
lease.
"Capital improvements" means the park
owner's cost of constructing new improvements or replacing old improvements in the mobilehome park, subject to the following
limitations:

1. The improvement must: have a life expectancy of five years or more and must be treated as capital improvements for federal
and state income tax purposes, and may not be
deducted for such tax purposes as expenses.

2. Normal routine maintenance and repair
are not capital improvements.

3. Insured repairs and replacement are not
capital improvements.

4. The improvements must be permanently fixed in place or relatively immobile.

5. Those improvements that the park
owner intends to pass through to the homeowner through special and limited rent increases, except for necessary infrastructure improvements, must be approved by fift (50)
percent plus one of the homeowners.
"Capital improvements" include construction, installation or replacement of all or a portion of a clubhouse, laundry facilty or other common area facilities a swimming pool, sauna, hot tub or other recreational amenities,
streets, security gates, outdoor or common
area lighting, retaining walls, sewer, electrical,
plumbing, water or television reception systems, sprinkler systems, or any addition to or upgrade of existing improvements.
"Commission" means the mobilehome park
rent stabilization commission, as established
by this chapter.
"CPI" means the Consumer Price Index
(All Items) prepared by the Bureau of Labor
Statistics for the Los Angeles-Anaheim-
-13-
33 Riverside area relating to all urban consumers.

If the method of calculating the CPI is substantially revised after the adoption of the ordinance codified in this chapter, the method in effect upon adoption of such ordinance shall
continue to be used, or the revised CPI shall
be adjusted by the city to correspond to that
method.

CPI Adjustment Period. The city shall calculate and furnish a figure constituting the CPI change for use as the basis of rent increases. Such figure need only be based upon available data. This figure shall be based on
the changes in the CPI during the last available twelve (12)-month period for which information is available from the Bureau of Labor Statistics prior to the effective date of the base rent or current space rent.
"Gross income" means and includes the
following:
i. Gross rent, computed as gross rental
income at one himdred (100) percent paid occupancy; plus

2. Interest from rental deposits, unless
directly paid by the park owner to the homeowner (interest shall be imputed at the rate of five and one-half percent of all deposits, unless such deposits earn greater interest); plus

3. Income from laundry facilities, cleaning fees or services, garage and parking fees attributable to mobilehome spaces; plus

4. All other income or consideration received or receivable for, or in connection with the housing services; minus

5. Uncollected rents due to vacancy and
bad debts, to the extent that the same are
beyond the owner's control. Uncollected rents
in excess of three percent of gross rents shall
be presumed to be unreasonable, unless proven otherwise. Where uncollected rent must be proven, the average of the preceding three
years' experience shall be used, or other comparable method. "Homeowner" means any person entitled to
occupy a mobilehome which is located within
a mobilehome park in the city.
"Housing services" means services provided by the park owner related to the use or occupancy of a mobilehome space, including,
but not limited to, water and sewer, natural
gas, electricity, refuse removal, management
and administration (including employee salaries and fringe benefits), maintenance and repairs, supplies, advertising, recreation facilties, laundry facilties, parking, security services, insurance, propert taes, governental assessments, and other costs reasonably attibutable to the operation of the mobilehome park. The term "housing services" shall not
include legal fees or mortgage payments,
whether for principal, interest, or both.
"Mobilehome" means a structure designated or designed for human habitation, transported over the highways to a-permanent occupancy site, and installed on the site either with or-without a permanent foundation.
"Mobile-home" includes a manufactured
home, as defined in the Health and Safety
Code, but does not include either a recreational vehicle or a commercial coach, as they are defined in the Health and Safety Code.
"Mobilehome park" means an area of land
where two or more mobilehome spaces are
rented or leased for mobilehomes used as residences. "Mobilehome park" does not include developments which sell lots for mobilehomes
or which provide condominium ownership of
such lots, even if one or more homes in the
development are rented or leased out.
"Mobilehome park owner" or "park owner"
means the owner, less~r, operator or manager
of a mobilehome park in the city.
-14-
34 "Necessary infrastructure improvements"
means maintenance (such as replacement of a
necessary component of a system or improvement, and other than normal maintenance or repair which constitute "operating expenses" pursuant to this section of streets, electrical, gas, plumbing, sewer or water systems, except that costs of replacement or repair incurred or required as a result of the park owners negligence.
"Operating expenses" shall include the following:

1. Real propert taxes;

2. Utility costs;

3. Management expenses (contracted or
park owner-performed), including necessar
and reasonable advertising, accounting, insurance, and other managerial expenses, and allowable legal expenses. Management expenses are presumed to be five percent of gross income, unless established otherwise;

4. Normal repair and maintenance expenses, including painting, normal cleaning, fumigation, landscaping, and repair of all
standard services, including electrical, plumbing, carpentry, furnished appliances, drapes, carpets and furniture;

5. Park owner performed labor, which
shall be compensated at a reasonable hourly
rate, based upon documentation being provided, showing the date, time and nature of the work performed;

6. License and registration fees required
by law, to the extent same are not otherwise
paid by homeowners;

7. Capital expenses with a total cost of
less than one hundred dollars ($100.00) per
year, benefited unit, and the amortized portion
of other capital. expenses otherwise allowed
by regulation.
"Operating expenses" shall not include:

1. Avoidable and unnecessary expenses
since the base year, including refinancing
costs;

2. Mortgage principal and interest payments;

3. Any penalty, fees or interest assessed
or awarded for violation of this or any other
law;

4. Legal fees, except allowable legal expenses as defined in this section;

5. Depreciation of the propert;

6. Any expense for which the park owner
has been reimbursed by any security deposit,
insurance settlement, judgment for damages,
settlement or any other method;

7. Land lease payments;

8. Cost of replacement or repair incurred
or necessary as a result of the park owner's
negligence or failure to maintain.
"Space rent" means the consideratiol1 on a
monthly basis, including any bonuses, benefits
or gratuities, demanded or received in connection with the use and occupancy of a mobilehome space in a mobilehome park, or for housing services provided, but exclusive of:

1. Any amount paid for the use of a mobilehome;

2. Security deposits and special and limited rent increases;

3. User fees for services or facilities
which may be utilized at the option of the
homeowners and are not included in monthly
space rent; and

4. Utility charges for those mobilehome
parks which bil homeowners separately
whether or not the mobilehomes are individually metered. (Ord. 121 §§ 5-7, 1994; Ord. 116 § 2 (part), 1994; Ord. 115U §§ 2,3 (par),
1994; Ord. 75 § 2, 1992; Ord. 48U § 1 (part),
1991: prior code § 6701)
-15-
35 5.16.030 Exemptions.

5.16.060 and 5.16.070:

A. Mobilehome park spaces rented for
nonresidential uses;
B. Mobilehome parks managed or operated by the United States Government, the state of California, the county of Los Angeles or
the city of Malibu;
C. Tenancies which do not exceed an occupancy of twenty (20) days and which do not contemplate an occupancy of more than twenty (20) days; D. Tenancies for which any federal or
state law or regulation specifically prohibits
rent regulations;
E. Tenancies subject to rental agreements
exempt from local ordinances pursuant to Civil Code Section 798.17; and F. Tenancies covered by leases or rental
agreements existing at the effective date of the
ordinance codified in this chapter which are
not exempt pursuant to subsection E of this
section, but only for the duration of such leases or rental agreements. Upon the expiration or other termination of such lease or rental
agreement, this chapter shall immediately be
applicable to the tenancy, unless that lease or
rental agreement immediately succeeded by a
lease or rental agreement referred to in subsection E ofthis section. (Ord. 48U § 1 (part), 1991: prior code § 6702)

5.16.040 Mobilehome park rent
stabilization commissionEstablishment and
organization.

A. There is established a commission to be
known as the "Malibu Mobilehome Park Rent
Stabilization Commission." The commission
shall be comprised of five residents of the
city. A member of the commission shall be
appointed to a vacant position by four-fifths
vote of the city council and serve at the pleasure of the city counciL. In no event shall any member of the commission be or, at any time
during the immediately five years have been,
a park owner or homeowner.

B. The city manager shall provide all administrative staff necessary to serve the commission. The city clerk shall serve as secretar of the commission and shall be responsible for
the maintenance of all records of the commission. The secretar shall keep a record of its proceedings, which shall be open for inspection by any member of the public. The city attorney or the designee of the city attorney
shall act as legal counsel to the commission.
(Ord. 48U § 1 (part), 1991: prior code § 6703)

5.16.050 Mobilehome park rent
stabilization commissionPowers and duties.

Within the limitations provided bylaw, the,
commission shall have the following powers
and duties:

A. To receive, investigate, hold hearings
on, and pass upon all issues relating to mobilehome park rent stabilization, as set forth in this chapter;
B. To make or conduct such independent
hearings or investigations as may be appropriate to obtain such information as is necessar to carr out its duties;
-16-
36 C. To adjust space rents either upward or
downward upon completion of its hearings
and investigations; and
D. To adopt, promulgate, amend and rescind administrative rules to effectute the purposes and policies of this chapter, within the limitations provided by law or by rules
adopted by the city counciL. (Ord. 48U § 1
(part), 1991: prior code § 6704)

5.16.060 Registration.

A. Registration Required. Within sixty
(60) calendar days after the effective date of
the ordinance codified in this chapter, park
owners shall register all mobilehome park
spaces with the city clerk. No park owners
shall be eligible to receive any rent increases
as provided for in this chapter unless current
registration information is on fie with the city
clerk.

B. Initial Registration. The initial registration shall include the names, business addresses, and business telephone numbers of each person or legal entity possessing an ownership interest in the park and the nature of that interest, and all lienholders, (no later than
thirt (30) days after acquiring such interest);
the number of aiobilehome spaces within the
park; the name and address of each resident; a
rent schedule reflecting space rents within the
park on December 31, 1984, for all spaces not
exempt from this chapter pursuant to Section

5.16.030; a listing of all other charges, including utilties, now included in space rent, paid by homeowners and the approximate amount
of each such charge; a list of all spaces exempt from this chapter pursuant to Section

5.16.030 and the reason for the exemption
and, for those exempt pursuant to leases or
rental agreements, the date ofthe expiration of
the lease or rental agreement and the amount
of the rent; and the name and address to which
all required notices and correspondence may
be sent.

C. Determination of Rents. The city manager or his or her designee shall determine the base rent. The decision of the city staff may
be appealed to the commission. The decision
of city staff or the commission on appeal,
shall be finaL. The city manager may promulgate regulations necessar to effectuate the purpose of this section.

D. Re-registration.

1. The city manager or his or her designee
may require re-registration as deemed necessary and may promulgate regulations to effectuate the purpose of this section.

2. The registration requirements provided
in this section or which may be established by
the city shall apply to all mobilehome parks
and mobilehome park spaces, including those
exempted from the provisions of this chapter
by reason of the existence of a valid rental
agreement. (Ord. 75 § 3, 1992; Ord. 48U § 1
(part), 1991: prior code § 6705)

5.16.070 Registration and
administrative fees.

A. Establishment of Registration Fee. At
the time of initial registration or any subsequent registration, park owners shall pay to the city such registration fee for each mobilehome rental space within the park as may be established by resolution of the city council
(not to exceed the reasonable and necessary
costs of administration of this chapter). The
city council may also provide that up to twothirds of that fee may be passed through to homeowners as special and limited rent increases if apportioned equally among the spaces and charged in twelve (12) equal consecutive installments.

Notwithstanding any other provision ofthis
section, where the total annual amount of the
-17-
37 fee to be passed through to each homeowner
is less than fort-eight dollars ($48.00), the
park owner may elect to recover the fee from
the homeowners in one lump sum rather than
in equal monthly installments.

B. Late Charge. If a park owner does not
pay the fee provided for in subsection A of
this section within the time period established
by the city council, a late charge shall be assessed in an amount established by resolution.

No late charges may be passed through as
special and limited rent increases to homeowners.

C. Unpaid Fee. No hearing or other proceedings shall be scheduled to take place, and no rent increase wil be granted or wil take
effect for any mobilehome park for which
there are unpaid registration fees.

D. Purpose of the Fee. The registration fee
provided for by this section is intended to defray the reasonable and necessar costs associated with the administration of this chapter and the regulations promulgated pursuant thereto.

E. Other Administrative Fees. The city
council may set by resolution other administrative fees to cover the reasonable costs of processing various requests and appeals, as it
deems necessary. (Ord. 168 § 1, 1997; Ord.
116 § 2 (par), 1994; Ord. 91 § 1, 1993; Ord.
48U § 1 (part), 1991: prior code § 6706)

5.16.080 Rent increasesCommission approval.

On or after March 28, 1991, no increase in
space rents in excess of the amounts permitted
pursuant to Section 5. 16.090(A) and (B) shall
be effective unless approved by the commission as set forth in this chapter. (Ord. 48U § 1 (part), 1991: prior code § 6707)

5.16.090 Rent increasesComputation and
determination.

A. Formula Increases. Space rents may be
increased automatically and annually by no
more than the total percentage change in the
CPI for the applicable CPI adjustment period
as determined by the city, except that space
rent shall not be increased by more than five
percent and may be increased by up to two
percent. Calculation ofthe one-year limitation
on formula increases shall be from the date
the last formula increase became effective for
that particular space.

B. Vacancy Increases. Notwithstnding
the provisions of subsection A of this section,
upon vacancy, space rent may be increased up
to fifteen percent of the then current maximum allowable rent permitted by this chapter prior to the vacancy.

C. Special and Limited Rent and Rent Increases.

1. Government Required Services. The
homeowner shall pay to the parks owner, on
the herein described terms, no less than sixty
(60) days after the park owner has notified the
homeowner in writing, the increased costs to
the park owner of government required services, which are to be included as part of the homeowner's rent but separately listed items
on the monthly statement.
a. For the purposes of this chapter, "government required services" shall be defined as services required by governental agencies
which are new or in addition to those services
legally. required to be provided by the park
owner to homeowners or to the mobilehome
park on March 28, 1991.
b. Such services include fees and charges
legally levied by an agency of federal, state or
local government upon the park owner. Such
services do not include predictable expenses
-18-
38 for operation of the mobilehome park, such as
common-area utilties expenses or expenses
which maintain the safe and healthful use of
mobilehome park facilities.
c. The park owner's actual out-of-pocket
costs of providing government required services may be charged to the homeowner upon sixty (60) days' written notice, using the following formula: Amount actually paid by the park owner, divided by the total number of
spaces in the mobilehome park, divided by
twelve (12) months, equals the sum for government-required services to be charged to the homeowner. Notwithstanding the formula described above, only those costs of providing governmental required services in the twelve
(12) months immediately preceding the proposed charge shall be reimbursed to the park owner by the homeowner in the maner herein
described. The park owner shall charge the
homeowner only those costs for government
required services which are nót reimbursed to
the park owner by insurance or other sources.

2. Capital Improvements. (i) Necessary
infrastrcture improvements subject only to
the provisions of subsection (C)(2)( d) of this
section; and (ii) subject to the vote requirements and the capital improvement limitations set forth in Section 5.16.020, and also subject
to review by the commission pursuant to Section 5.16.110, the actual net costs of a capital improvement plus an interest charge to compensate the park owner for the use of money in making the improvement, as described below, may be charged to the homeowners upon sixt (60) days' written notice, using the following formula: net amount actually paid by the park owner for the capital improvement,
plus an interest charge as described below,
divided by the total number of spaces in the
mobilehome park affected by the improvement, divided by the anortization period for the capital improvement allowed by the Internal Revenue Service, equals the monthly sum for capital improvements to be charged to the
homeowners and biled separately from space
rent.
b. The interest charge that may be added
to the costs of materials and labor is the current rate derived from the then-current prime interest rate, computed on a declining balance
over a five-year period with equal monthly
payments (the five-year period represents the
amount of time allowed for fully amortizing
the cost of capital improvements).
c. Notwithstanding the provisions of subsection (C)(2)(a) of this section and Section

5.16.020 and that the park owner obtained a
minimum of three bids from qualified persons/entities to perform the work, if possible, and that the park owner selected the person/entity submitting the lowest responsible bid to perform the work for the proposed necessary infrastructure improvement. No commission review is required or permitted.

D.l. Sublease Surcharge. Notwithstanding
the provisions of subsection A of this section,
upon sublease of a space and/or lease of a
mobilehome, the space rent may be increased
up to fifteen (15) percent ofthe rent otherwise
permitted under this chapter. This rent surcharge shall be effective only for the duration of the sublease and shall be eliminated when
and if the sublease is terminated. A sublease
surcharge shall not become effective until
twelve (12) months after the last vacancy increase pursuant to subsection B of this section. The sublease surcharge rent amount shall be calculated separately and shall not be in-
-19-
39 cluded in the maximum allowable rent for the
purposes of calculating formula increases pursuant to subsection A of this section. The provisions of this subsection shall not apply to those spaces . granted hardship exemptions
pursuant to subsection F of this section for as
long as the space is eligible for such exemption.

2. Absentee Owner Surcharge. Notwithstanding the provisions of subsection A of this section, in the event that a homeowner does
not use his or her mobilehome at a mobilehome park as a primary or principal residence and the homeowner is not otherwise subject to
subsection (D)(1) of this section, the homeowner's space rent may be increased up to fifteen (15) percent of the rent otherwise permitted under this chapter. This rent increase shall be effective only until the homeowner
occupies his or her mobilehome at the mobilehome park as a primary residence or the homeowner subleases his or her space or mobilehome and becomes subject to subsection (D)(I) of this section. For purposes of this
chapter, a primary residence is a residence
where the homeowner resides for over one
hundred eighty-five (185) days during a calendar year.

E. Sublease Hardship Exemption. Upon
application, the city manager may grant a
hardship exemption in connection with the
sublease surcharge, which exemption shall
last for a term of one year. At the expiration of
any particular term of the exemption, the applicant may apply to renew the one-year term by again establishing qualification for the exemption. The application and renewal application shall be in the forms provided by the city manager with a copy to the park owner and,
shall include sufficient evidence to establish
whether the applicant qualifies for an exemption pursuant to this section and shall be signed by the applicant under penalty of perjury. The city manager shall grant the exemption for any qualified applicant.

1. Qualification. To qualify for the sublease hardship exemption, the applicant must satisfy all of the following criteria:
a. The applicant must own a mobilehome
at the applicable park, and must have occupied the mobilehome as his or her primary residence for a minimum of three years prior
to applying for this exemption.
b. The applicant must present adequate
evidence that he or she would qualify for the
Low Income Rate Payer Assistance Program
for Submetered Households.
c. The combined value of assets owned
by the applicant must not exceed one hundred
fift thousand dollars ($150,000.00) excluding
the value of the mobilehome itself.
d. No person other than the applicant can
declare the applicant as a dependent for purposes of federal or state taes.

In the event that the applicant, after receiving the hardship exemption, at any time ceases to satisfy all of the foregoing criteria, from
that point on, the applicant wil not be qualified to receive, and shall not receive, the hardship exemption.

2. Effect of Exemption. Each applicant
who qualifies for the hardship exemption shall
be exempt from the sublease surcharge provided in subsection D of this section. (Ord. 121 §§ 2-4,8,9,1994; Ord. 115U § 3 (part),
1994; Ord. 74 § 3, 1992; Ord. 48U § 1 (part),
1991: prior code § 6708)

5.16.100 Rent adjustmentsCommission review.

A.l. In order to implement a rent increase
as permitted under Section 5.16.090 of this
chapter or a rent decrease based on a reduction of housing services, the applicant must -20-
40 fie with the commission a proposed rent
schedule on the form provided by the commission. Any proposed capital improvement to be passed through to homeowners must be
approved by the commission after the park
owner fies an application showing the
amount of the expense, the amount to be
passed through and proof of a majority vote in
favor of the special and limited rent increases.

2. Where the park owner is the applicant,
the park owner shall serve each affected
homeowner, either personally or by mail, with
written notice of the proposed increase, in accordance with state law, and with notice that a request for approval of same is being fied
with the commission. Where a homeowner (or
homeowners) is the applicant, the homeowner
shall serve the affected park owner by mail or
personally at the address and to the person
designated in the registration form submitted
by the park owne~ to receive notices on behalf
of the park owner. The applicant shall file
proof of such service with the commission
concurrent with the fiing of the rent increase
or decrease application. Copies of the rent
schedule, request for increase and supporting
documentation shall be available to any
homeowner requesting same at the park owner's offce in the affected mobilehome park.

B. If the city determines that the application is not complete, accurate, or not in compliance with this chapter, within twenty-one (21) days ofthe date on which the application
was fied, the city shall give written notice of
the deficiencies to the applicant.

C. The city shall set a hearing on any request complying with the requirements of this chapter no sooner than fift (50) days and no
later than seventy (70) days after the application is accepted as complete. The city shall send written notice to the park owner, who
shall post such notice in a conspicuous place,
of the time and place set for the hearing. If the
commission approves an increase as requested, or lower than requested, the same shall take effect as noticed by the owner or as
the commission may otherwise direct.

D. In the application for rent adjustment
under this chapter, the park owner shall indicate which, if any, of the mobilehome spaces are covered by leases or contracts which provide for more than a month-to-month tenancy, together with expiration date of each such
lease or contract. Any rent increase approved
by the commission under this chapter shall not
be applicable to spaces covered by such leases
or contracts during the term of such leases or
contracts.

E. Homeowner(s) in a mobilehome park
may initiate commission review of a proposed
land rent increase by filing with the city clerk
a written petition. The petition shall be in substantially such form and contain such information as may be required by the commission. (Ord. 116 § 2 (part), 1994; Ord. 48U § 1
(part), 1991: prior code § 6710)

5.16.110 Review hearings.

A. All review hearings conducted by the
commission shall be open to the public.

B. All parties to the hearing may have assistance from an attorney or such other person as may be designated by the parties in presenting evidence or arguing their positiòn. All witnesses shall be sworn in and all testimony
shall be under penalty of perjury.

C. In the event that either the park owner
or the homeowner(s) should fail to appear at
the hearing at the specified time and place, the
commission: may hear and review such evidence as may be presented and make such decisions as if both paries had been present.

D. All review hearings shall be taperecorded. Tapes shall be preserved for six -21-
41 months, or longer, if requested by either part
affected by the hearing.

E. The commission may promulgate regulations to effect the purpose of this section and to assure fair hearings. (Ord. 48U § i (part),
1991: prior code § 6711)

5.16.120 Rent adjustmentsCommission decision
authority.

A. The commission's decision shall be
based on the preponderance of the evidence at
the hearing. All paries to the hearing shall be
advised of the commission's decision and given a copy of the findings upon which the decision is based.

B. Consistent with its findings, the commission may:

1. Permit the requested increase to become effective, in whole or in part;

2. Deny the increase;

3. If circumstances justify, order a reduction in rent to a rate determined by the commission; or

4. Order that the park owner reimburse
the applicant(s) the full amount, or any part of
the amount, of the application fee where: (a)
the applicant for a rent reduction was successful; (b) the park owner has not proven that the rent reduction ordered or the award of costs
would deprive the park owner of a fair return
as defined in this chapter; and (c) circumstances otherwise warantthe award of costs to the applicant.

C. If the commission finds that an increase
that went into effect, or any portion thereof, is
not justified, the park owner shall refund the
amount found to be unjustified to the homeowner within sixty (60) days after the decision of the commission is announced.

D. Ifthe commission finds that a proposed
increase, or any portion thereof that was previously inoperative, is justified, the homeowner shall pay the amount found justified to the park owner within sixty (60) days after the
decision of the commission is announced.

E. The conclusions and findings of the
commission shall be finaL.

F. Any part disputing the final conclusions and findings of the commission may seek review of the commission's actions pursuant to Sections 1094.5 and 1094.6 of the California Code ofCivIl Procedure. (Ord. 135
§ 1, 1995; Ord. 48U § 1 (par), 1991: prior
code § 6713)

5.16.130 Hearing-Evidence and
procedural irregularities.

Formal rules of evidence or procedure
which must be followed in court shall not apply to commission proceedings, except to the extent that the commission shall determine.

No action of the commission hereunder shall
be held void or invalid or be set aside by any
court on the grounds of any improper admission or rejection of evidence, or by reason of any error, irregularity, informality, neglect or
omission (hereinafter called "error") as to any
matter pertining to applications, notices,
findings, records, hearings, reports, recommendations, or any matters of procedure whatever, including but not limited to those
included in this section, unless after an examination of the entire case, including the evidence, the court shall be of the opinion that
the error complained of was prejudicial, and
that by reason of such error the par complaining or appealing sustained and suffered substantial injury, and that a different result
would have been probable if such error had
not occurred or existed. There shall be no presumption that error is prejudicial or that injury was done if error is shown. (Ord. 48U § 1
(part), 1991: prior code§ 6714)
-22-
42 5.16.140 Implementation guidelines.

After a noticed-public hearing, as it deems
necessar, the city council may adopt by resolution guidelines to aid in the implementation of this chapter. (Ord. 48U § 1 (part), 1991:
prior code § 6715)

5.16.150 New and prospective
homeowners.

A. Prior to or at the time of agreeing to
rent spare to a new homeowner in a mobilehome park, the owner shall provide each new homeowner or prospective homeowner with a
copy of the mobilehome park rent stabilization ordinance, as currently in force.

B. No owner may require, directly or indirectly, that any resident or prospective resident sign a lease or rental agreement that provides that it shall be exempt from local rent control or provides for space rent in excess of
that permitted by this chapter as a condition of
tenancy in the park and no owner may deny a
tenancy to a prospective purchaser of a mobilehome in the park on the ground that the prospective purchaser wil not sign such a
lease or rental agreement.

C. The notice shall contain a place for the
homeowner to acknowledge receipt of the notice. The park owner shall sign an acknowledgment that the required notice has been given to the homeowner and provide the homeowner with a copy of the executed acknowledgment. (Ord. 74 § 1, 1992: Ord. 48U § 1 (part), 1991: prior code § 6716)

5.16.160 Homeowner's right of
refusal.

A homeowner may refuse to pay any in~
crease in rent which is in violation of this
chapter. Such refusal to pay shall be a defense
in any action brought to recover possession of
a mobilehome space or to collect the rent increase. (Ord. 48U § 1 (part), 1991: prior code § 6717)

5.16.170 Retaliatory eviction.

Notwithstanding Section 5.16.160, in any
action brought to recover possession of a mobilehome space, the court shall consider as grounds for denial any violation of any provision ofthis chapter. Further, the determination that the action was brought in retaliation for
the exercise of any rights conferred by this
chapter shall be grounds for deniaL. Any action brought within one year of a petition or complaint fied with the commission by the
homeowner pursuant to this chapter shall be
presumed to be retaliatory; this presumption
affects the burden of proof, and is rebuttble
by the park owner. (Ord.48U § 1 (par), 1991:
prior code § 6718)

5.16.180 Violation-Civil remedies.

If any park owner demands, accepts, receives or retains any payment of rent in excess of the maximum lawful space rent, as determined under this chapter, then the homeowners in such mobilehome park affected by such violation, individually or by class action, may
seek relief in a court of appropriate jurisdiction for injunctive relief and damages. The prevailng part wil recover costs and reasonable attorneys' fees as part of any courtjudgment. (Ord. 48U § 1 (par), 1991: prior code § 6719)

5.16.190 Violation-Prnalty.

Any person violating any provision, or failing to comply with any requirement of this chapter shall be guilty of a misdemeanor. Any
person convicted of a misdemeanor under the .
provisions ofthis chapter shall be punished by
a fine of not more than five hundred dollars
-23-
43 ($500.00) or by imprisonment for a period of
not more than six months, or by both. Each
violation of any provision of this chapter, and
each day during which any such violation is
committed, permitted or continued, shall constitute a separate offense. (Ord. 48U § 1 (par), 1991: prior code § 6720)

5.16.200 Just and reasonable return.

A park owner may fie a rent adjustment
application for one, some or all the spaces in a
mobilehome park in order to establish the
maximum allowable rent or to achieve a fair
and reasonable return. Homeowners may fie a
rent adjustment application based on reduction
in services or other grounds established by
this-chapter or regulations promulgated pursuant thereto. Nothing in this chapter shall be construed to prevent the grant of a rent adjustment upon application by a park owner when required to permit a fair and reasonable
return to the park owner. The city shall receive relevant evidence, in accordance with applicable regulations, demonstrating that a
landlord is not receiving a fair and reasonable
return in determining these applications. (Ord.
115U § 4, 1994: Ord. 48U § 1 (part), 1991:
prior code § 6721)

5.16.210 Mobilehome park relocation
impact reports.

A. Statement of Purose. The purpose of
this section is to implement the provisions of
state law addressing the adverse impacts on
the residents and homeowners in a park which
is converted, closed or where the park's use is
changed or ceased.

B. Defipitions. For purposes of this section, the following definitions shall apply in addition to those listed in Section 5.16.020.

1. "Advisory agency" means the planing
departent, commission, or hearing offcer as
designated by the city counciL.

2. "Change of use" means a use of a mobilehome park for a purpose other than the rental, or the holding out for rent, of two or
more mobilehome sites to accommodate mobilehomes for human habitation. "Change of use" includes, but is not limited to, a change
of the park or any portion thereof to a condominium, stock cooperative, or any form of ownership wherein spaces within the park are
to be sold, and the cessation of use of all or a
portion of the park, whether immediately or
on a gradual basis, or the closure of the park.
"Change of use" shall not include mere purchase of the park by its existing homeowners.

3. "Comparable housing" means housing
which is comparable in floor space area, deck
and lot size, and number of bedrooms and
other relevant factors to the mobilehome to
which comparison is being made, which housing meets the minimum standards of the State Uniform Housing Code.

4. "Comparable mobilehome park" means
any other mobilehome park substantially
equivalent in terms of park condition, amenities, ocean views and beach access and other relevant factors.

5. "Date of application for change of use"
means the date of filing ôf an application for
rezoning, general plan amendment, use permit, site development permit or other discretionary development approval under this code, which application seeks approval of a change
of use of a mobilehome park or the date of the
closure or cessation of use.

6. "Eligible homeowner" means a homeowner whose mobilehome or manufactured home was located in a mobilehome park on
the date of the application for a change of use.

C. General Requirements.
-24-
44 1. Any person who fies an application for
a rezoning, general plan amendment, subdivision map, use permit, site development permit or for any other discretionary development
approval, for the purpose of a change of use of
a mobilehome park or closure, shall file with
the advisory agency a report on the impact of
the conversion, closure, or cessation of use
(hereinafter "closure") upon the residents of
the mobilehome park who wil be displaced,
no later than the filing of the first such application necessary to authorize such closure.

2. No application shall be considered or
deemed completed or processed for consideration and approval unless and until such conversion impact report shall have been fied as required by this subsection.

3. Use of a propert as mobilehome park
shall not be terminated for the purpose of
conversion to another land use or cessation of
use until approval by the advisory agency and
the city council, or appeal, has been received.

4. No building permit shall be issued on
propert occupied by a mobilehome park at
the effective date of this chapter or hereinafter
for uses other than those associated with the
mobile home park use and allowed under the
special use permit, until approval under this
section has been received.

D. Conversion Impact Report.

1. The conversion impact report shall address the availabilty of adequate replacement housing in mobilehome parks and the cost of
relocating displaced residents.

2. In order to evaluate adequately and address those issues, the conversion impact report shall contain the following information:
a. The names, addresses and mobilehome
site identification numbers of all persons owning mobilehomes within the mobilehome park and of all mobilehome residents on the date of
application for change of use;
b. The age, including date of manufacture,
of each mobilehome within such park, including the type of mobilehome, width characteristics, size, and number identifying the mob ilehome site being occupied; c. A list of vacant mobilehome sites in
comparable mobilehome parks within a fift
(50) mile radil.s of the park which is the subject of the application or request; d. The list shall contain a schedule of site
rental rates for each park listed and the criteria
of the management of each park for acceptance of new homeowners and used mobilehomes; e. The names, addresses and telephone
numbers of one or more housing specialists
from the list compiled by the advisory agency,
and the names, addresses and telephone numbers and fee schedules of persons qualified as mobilehome movers and of persons who are
qualified appraisers of mobilehomes and an
explanation of the services the housing specialists wil provide; f. The applicant may designate other
housing specialists, and mobilehome movers
and appraisers; provided, that use of any such
persons pursuant to this chapter shall be subject to approval by the advisory agency; g. A relocation plan which wil include:
i. Timetable for implementing the physi-
. cal relocation of mobilehomes,
ii. Implementation of relocation assistance,
iii. Payment of relocation costs, and
iv. Conversion of the park to one or more
other uses.

3. The application shall include within the
conversion impact report the steps proposed to
mitigate any adverse impact on the abilty of
displaced homeowners to find adequate housing in a mobilehome park, including the reasonable costs of relocation. -25-
45 a. All eligible homeowners and all mobilehome tenants of eligible homeowners shall be provided with the services of one or more
housing experts to assist them in relocating to
available and adequate housing upon their
request. Any such experts shall be those approved pursuant to this section. i. A factor to be considered is that the
conversion wil not result in the displacement
of low-income individuals or households who
cannot afford rents charged in other parks.
ii. A factor to be considered is it the conversion is to another residential use, the homeowners have first opportnity to occupy
and the construction schedule wil not result in
long-term displacement.
b. No benefits shall be provided to any
person who is renting a mobilehome from the
owner of the mobilehome park where such
person shall have executed a written agreement with such mobilehome park owner waiving his or her rights to any such benefits. No such waiver shall he valid unless it contains
the text of this section, and unless such person
shall have executed a written acknowledgment
that he or she has read and understads his or
her rights pursuant to this chapter and knowingly agrees to waive them. c. In order to faciltate the intentions of
the homeowners or tenants and an applicant
for a change of use with regard to a change of
use, the parties may agree to mutually satisfactoryrelocation assistance. To he valid such an agreement shall be in writing, shall include
a provision stating that the homeowner is
aware of the provisions of this chapter, shall
include a copy of this chapter as an attchment, shall include a provision in at least ten (10) point type which clearly states the right
to seek and the importance of obtaining an
attorney's advice prior to signing the agreement, and shall be drafted in form and content -26-
otherwise required by applicable state law.

Any person signing such an agreement may
rescind it in writing within ten (10) business
days of final approval of change of use. Any
such agreement which is procured by fraud,
misrepresentation, coercion or duress of any
kind shall be void and unenforceable.

E. Hearing and Notice.

1. Upon the receipt of an impact report,
within thirt (30) days the advisory agency
shall examine the same and advise the applicant whether it is complete. When a complete impact report has been filed and accepted by
the advisory agency, within thirt (30) days
the advisory agency shall set a time, place and
date for a hearing.

2. At least thirt (30) days prior to the
hearing, the advisory agency shall mail notice
to the applicant and the homeowners of the
date, time and place of the meeting.

3. At least fifteen (15) days prior to the
scheduled public hearing before the advisory
agency on the conversion impact report, the
applicant shall provide the homeowner and all
other persons described with a copy of this
chapter, a copy of the conversion impact report, and date and time for an informational meeting pursuant to subsection (E)( 4) of this
section.

4. Not less than ten (10) days prior to the
date of the scheduled public hearing before
the advisory agency, the applicant shall conduct an informational meeting for the residents of the mobilehome park regarding the status of the application, the timing of proposed relocation of residents, proposed relocation costs and assistance, and the contents of the conversion impact report. The meeting
shall be conducted on the premises of the mobilehome park. The housing specialist(s) designated in the impact report shall be present at such meeting.
46 5. Within five (5) days prior to the public
hearing, the applicant shall fie with the advisory agency a statement made under penalty of perjury that all requirements pursuant to
subsections (E)(3) and (4) of this section have
been complied with and include date, time,
and place where such meeting as required by
subsection (E)(4) of this section occurred.

F. Findings and Decision. At the conclusion of the hearing, the advisory agency shall render its decision. The advisory agency shall
approve, conditionally approve or disapprove
the relocation impact report. The advisory
agency shall approve the relocation impact
report if it finds that the relocation impact report contains the information required pursuant to this section. In approving the relocation impact report, the advisory agency may impose such conditions as it finds necessar to
mitigate the adverse impacts on the residents;
however, any steps required to betaken by the
park owner pursuant to this section shall not
exceed the reasonable costs of relocation. No~
tice of the advisory agency action shall be
mailed to the park owner, to all homeowners
and to all persons who have filed written request therefor.

G. Request for AppeaL. The park owner or
any homeowner may appeal the advisory
agency's decision to the city counciL. The appeal shall be fied with the city on a form provided for that purpose within ten (10) days after the action of the advisory agency. When
an appeal is fied, it shall be accompanied by a
fee in an amount determined according to Section 5.16.070. The city shall, within fort-five (45) days, set a time and date for a hearing,
and shall mail written notice of such hearing
to the park owner, all homeowners, the person
requesting the hearing, the advisory agency
and all persons who have fied written request
therefor, at least fifteen (15) days prior to the
hearing.

F or all requests for hearing, the city council
may sustain, modify, reject or overrule any
recommendations or rulings of the advisory
agency and may make such findings as are not
inconsistent with the provisions of this section.

H. Extensions. Any of the time limits specified in this section may be extended by mutual consent of park owner and the advisory agency, or the city council, on appeal, with .
notice to affected homeowners, except where
prohibited by state law.
i. Expiration and Extension of Relocation
Impact Report. The approval of a relocation
impact report shall become null and void after
thirt-six (36) months from the date of the
mailing ofthe final approval of the relocation
impact report. Thereafter, the park owner shall
not convert, close or cease the use of the park
until such time as a new relocation impact
report is approved. However, upon application
of the park owner, fied with the advisory
agency on or before the date of expiration, the
relocation impact report may be extended by
the advisory agency up to an additional thirtsix (36) months. An application for an extension shall be subject to the notice and hearing procedures of this section.

J. Conditions. In the approval of a mobilehome park conversion, the city may attach conditions deemed reasonable in order to mitigate the impacts associated with the conversion. Such conditions shall not be limited to, but may include, the following:

1. If the land occupied by the park is to be
sold, the homeowners shall be given the right
of first negotiation (from the seller) and
matching rights (right of last refusal) for the
purchase of the park and all the improvements.
-27-
47 2. The homeowners be given the option of
a long-term lease of the land and purchase of
the improvements.

3. The city may attch an effective date
upon their approval of the conversion. This
date wil provide sufficient time for the relocation of the mobilehome to other parks.

K. Revocation and Amendment. Any time
prior to the closure of the mobilehome park,
the advisory agency may, in its discretion, and
upon good cause shown, initiate proceedings
for the revocation or amendment of an impact
report. Good cause may include, but is not
limited to, change of circumstances which
render the conditions or requirements of the
relocation impact report no longer necessary
or appropriate, negligent or fraudulent misrepresentation of fact relating to the relocation impact report, or noncompliance with the
conditions of the impact report. Prior to revoking or amending a relocation impact report, the advisory agency shall conduct a hearing in accordance with the applicable procedures set forth in subsection E of this section.

Upon revocation, the park owner shall not
convert, close, cease or change the use of the
park until such time as a new relocation impact report is approved. Such revocation or amendment is subject to the same request for
hearing as is provided in subsection G of this
section.

L. Evictions Pending Compliance with
Relocation Impact Report. Termination of a
tenancy of any resident pursuant to Civil Code
Section 798.56 or any other provision of law
shall not relieve the park owner of its obligation to comply with the conditions or requirements of the relocation impact report applicable to that resident. However, if the termination of tenancy is based on subdivisions (a), (b), (c), (d), (e) or (f) of Section 798.56 of the
Civil Code, the advisory agency, upon request
by the park owner, may grant to the park
owner extensions of time within which to
comply with the conditions of the relocation
impact report.

M. Additional Authority of the Advisory
Agency. If, notwithstanding the fact that the
park owner has not served a six (6) months' or
twelve (12) months' notice on the residents,
the advisory agency finds that the park owner
is attempting to close or convert a park, then
the advisory agency shall require the filing of
a relocation impact report.

N. Obligations of Applicant After Approval of Conversion Impact Report. After the date of determination that the conversion impact report complies with the requirements of this chapter, the applicant shall undertake or
be responsible for performance of the following obligations:

1. Not later than thirt (30) days from the
date of such determination, the housing specialist or specialists shall make personal contact with each homeowner of the mobilehome park and commence consultations to determine the applicable costs and assistance to be provided. The housing specialist or specialists
shall give each homeowner and former resident eligible to receive relocation assistance written notice of his or her rights to relocation
assistance as determined by the city under this
chapter.

2. Not less than one-hundred twenty (120)
days prior to the date any homeowner is required to vacate the mobilehome park, any cash or monetary relocation costs required by
this chapter shall be paid to such homeowner,
to any former resident eligible for such costs,
or to any person, firm or corporation performing relocation related services for the homeowner, as the homeowner may direct. If the applicant purchases the mobilehome the
homeowner shall be required to promptly
-28-
48 submit to the applicant all documents necessary to transfer complete title and ownership of such mobilehome to the applicant, free and
clear of all security interest, liens, or other
encumbrances.

3. The date upon which any resident of
the mobilehome park is required to vacate
such park, or upon which any mobilehome is
required to be removed from the mobilehome
park, shall be not less than six months from
the date of notice of termination of tenancy
pursuant to Civil Code Section 798.56(f)).

4. If the owner of the mobilehome park,
the applicant homeowner or tenant specifically requests that any of the time limitations required by this section be modified, the city
shall consider any such modification and evidence relating to the need therefore at the public hearing on the conversion impact report.

The city shall have the power to make modification in such time limits, both in response to a request and on its own motion, in conjunction with any approval of a conversion impact report, as the city may deem just and reasonable.

O. Payment of Relocation Assistance
Benefits-Prerequisite to Issuance of Building
Permit to Redevelop Park. No building permit
shall be issued for the development of any real
propert which has been or is being converted
from a mobilehome park pursuant to this
chapter unless and until the applicant or the
owner of the propert, as the case may be,
who is responsible for payment of any required monetary relocation assistace, shall have fied with the advisory agency a verified
statement made under penalty of perjury that
relocation assistace payments required pursuant to this chapter have been paid. Such statement shall specify in itemized form each
payee, the amount paid, the date of payment,
-29-
and the tye of relocation or other assistance
for which each such payment was made.

P. Violations. Violations of this section
shall constitute a misdemeanor. In addition,
any park owner or applicant who violates any
rights of any homeowner or mobilehome tenant established under this chapter shall be liable to the person for actual damages caused
by such violation, plus costs and reasonable
attorneys' fees. No park owner shall take any
wilful action to threaten, retaliate against or
harass any park resident with the intent to
prevent such residents from exercising his or
her rights under this chapter. (Ord. 74 §§ 4-
9,1992; Ord. 48U § 1 (part), 1991: prior code
§ 6723)
49 City of Malibu
Mobilehome Park Rent Stabilization
Commission
Alopted 6/13/95
Administrative Re1!ulations
Commission Re1!ulations
Regulations adopted by the City Manager:

Chapter 1
Chapter 2
Chapter 3
Chapter 4
General Description of Chapter 7. Aricle VI
Registration of Mobilehome Spaces
Determnation of Base Rents
Appeals from Rent Determinations
Regulations adopted by the Commission:

Chapter 5
Chapter 6
Chapter 7
Chapter 8
Chapter 9
Chapter 10
Chapter 11
Formula Rent Increases
Vacancy Increases
Governent Required Services (Special/Limited Rent)
Capital Improvement
Reduction in Services
Rent Increase to Assure a Fair and Reasonable Return
Necessar Infastructure Improvements
Chapter 12-29 RESERVED
Chapter 30 General Procedures for Rent Adjustment Applications Chapter 31 Hearngs and Decisions
Chapter 32 Regulations Governng Commission Meetings
(Rev.: 4-19-99)
-30-
50 ATTACHMENT 2
Chapter 1

GENERA DESCRIPTION OF ORDINANCE
Section 1001. Purpose ofM.M.C. Chapter 7. Article VI
The Malibu Mobilehome Park Rent Stabilization Ordinance was adopted to prevent unwaranted and excessive space rent increase and to protect the substantial investment of the homeowners in their mobilehome, while at the same time affording the park owner a fair and reasonable return on their propert.

Section 1002. Applicabiltv.

The provisions of these reguations are intended to be applicable to the administration and enforcement of the provisions of Chapter 7 of Aricle VI of the Malibu Muncipal Code.

Mobilehome Park Rent Stabilzation Commissicm Regulations Page 1 51 Chapter 2

REGISTRATION OF MOBILEHOME SPACES
Section 2001. Ree:istration Requirement
All mobilehome parks within the City of Malibu are required to be registered anually with the City. Park owners must register their mobilehome parks with the City pnor to July 1 of each year. The 1992 initial registration of all mobilehome parks and subsequent registrations shall be completed on a form provided by the City Manager and to the satisfaction of the City Manager along with the required registration fee. The registration provisions of this section shall apply to all mobilehome spaces within the City of Malibu, including spaces exempt from rent regulation or exempt under Civil Code Section 798.17. No park owner shall be considered or permitted to receive any anual rent increase, rent adjustment or special adjustment to a mobilehome space rent unless said park has satisfied the registration requirements of this section and these adminstrative regulations, including payment of all required registration fees.

Section 2002. Initial Ree:istration
All park owners shall register their mobilehome parks on or before Februar 3, 1992, which is sixty (60) days after the adoption of Chapter 7, Article Vi.

Section 2003. Subsequent Ree:istration
A park owner shall re-register the mobilehome park upon change of ownership or in the event significant changes in the information provided on the initial or annual registration has occurred.

Section 2004. Annual Ree:istration Renewal
In the event no significant changes to park ownership, address or other information has occurred, a park owner renews its anual registration upon paying of the appropriate registration fee and signing and submitting a verification stating that the curent registration information is true and correct.

Section 2005. Acceptance of Ree:istration
The City shall accept registration of a mobilehome park in the event that the registration form contains all the information required and is accompanied by the required registration fee. The mere submission of information does not constitute or guarantee acceptance of registration and compliance with this section.

Section 2006. Failure to Ree:ister or Re-ree:ister Parks Any park owner who fails to register and pay registration fees shall not be entitled to formula increases or other rent adjustments as provided for by Chapter 7 of Aricle VI, shall not be entitled to pass through the registration fees to homeowners, and shall be subject to fines in the amount of i 00% of the registration fees.

Mobilehome Park Rent Stabilization CommissiR.egulations Page 2 52 Chapter 3

DETERMINATION OF BASE RENTS
Section 3001. Determination
The. City shall determine the base rent and the maximum allowable rent for each mobilehome space in the City. The determinátions shall be in accordance with Section 6701(B) of Chapter 7, Aricle VI.

Section 3002. Park Owners' Responsibilty to Provide Information Upon request by the City, the park owners shall provide the City with a list of the curent rent for each space for which a valid long-term lease was in effect on December 3, 1991 where such lease exempts the space from local rent control pursuant to State law and, for all other spaces in the park, the amount of the rent that was in effect on December 31, 1984, and March 28, 1991, and documents supporting the rent information for all spaces in the park.

Section 3003. Alternative Sources of Information
The City may also accept information from curent or former park residents or real estate agents or any responsible par reasonably likely to have actual knowledge of or access to credible sources for the amount of the rent in effect on December 31, 1984.

Section 3004. Opportunity to Rebut
Determinations of the base rent shall be mailed to both the park owner and curent resident and shall not be final for ten (10) days after such mailing. During this time, either par may produce evidence to rebut the amount determined and rebut such determination in wrting to the City Manager. The City Manager shall consider such information and make a final decision.

Section 3005. Recalculation
For the purposes of recalculating rents in accordance with Section 6701(B) of Chapter 7, Aricle VI, the City accepts the following percentages which represent 75% of the Consumer Price Index (Cpr-U) for All Urban Wage Earers within the Los Angeles-Anaheim-Riverside Metropolitan Area as those used by the County of Los Angeles in enforcing Section 8.57.070 of the Los Angeles County Code:

For the Calendar Year
1985
1986
1987
1988
1989
1990
1991
Percentage - 75% of CPI

3.5%

2.5%

3.2%

3.5%

3.8%

4.4%

2.3%
Mobilehome Park Rent Stabilization Commissi Regulations Page 3 53 Chapter 4

APPEALS FROM RENT DETERMINATIONS
Section 4001. Scope of Reeulations
The reguations contained in this Chapter apply to appeals from rent determinations made by the City Manager or his designee pursuant to M.M.C. Section 6705(c).

Section 4002. RIeht to Appeal
The determnation of a base rent made pursuant to M.M.C. Section 67058 may be appealed to the Commission by any affected pary.

Section 4003. Grounds for Appeal
The determination of a base rent may be appealed on any of the following grounds:

A. The determination is not reasonably supported by the evidence submitted to the City in accordance with M.M.C. Section 6705; or
B. There was a tyographical error or an error in calculation; or C. There is new and relevant information which was not available to the City Manager because of mistake, inadvertence or excusable neglect where such information could have affected the City Manager's decision. A sumary of the reasons why such evidence was not available shall be included in the application.

Section 4004. Time for Appeal
An appeal from a rent determination must be filed fifteen (15) days after receipt of final Staff determnation. Staff or the Commission may waive the time limits for good cause. Not withstading the deadlines in this section, the Commission shall accept and schedule for hearing those appeals of base rent determinations received up to and including October 15, 1992. (amended 9/24/92 by Res. No. RC 92-05)
Section 4005. Appeal Forms
Appeals pursuant to this Chapter may be fied on the form provided by the City or in writing pursuant to the requirements set forth in the remainder of this Chapter.

Section 4006. Appeal Fees (Reserved)
Section 4007. Procedure for Filne an Application or Appeal A. Applications and appeals under this Chapter shall be submitted to the City Manager.

Applications and appeals submitted are not automatically deemed fied. An application or Mobilehome Park Rent Stabilization CommissiQJ Regulations Page 4 54 appeal shall meet the requirements of Section 4008 before it may be filed.

B. The City Manager shall determine within thrty (30) days afer receipt of an appeal or application whether said application or appeal is complete or whether additional information is needed in order to make it complete. If the City Manager determines the application or appeal is not complete, it shall so notify the applicant or appellant in writing, setting forth the additional information required.

Section 4008. Requirements for Filne:

Appeals and applications shall not be filed when any of the following circumstances exist:

A. The application or appeal is not made on the appropriate form or, if submitted by letter, does not contain the required information.

B. If the appeal is by the park owner, where the park is not registered in accordance with Section 6705(A)and (B) of the Malibu Municipal Code.

C. The Commission has already issued a decision setting initial base rent for the subject space or has failed to act, thereby making the City Manager's determination finaL. In the case ofan appeal of a vacancy increase on a space for which the intial base rent was previously determned, the Commission may hear the appeal of the vacancy increase and set the base rent for the new home owner.

Section 4009. Evidence
Formal rules of evidence shall not apply except as set forth in Chapters 30 and 31 ofthese Regulations.

Section 4010. Staff Report
The Staff Report shall be submitted pursuant to the regulations set forth in Chapters 30 and 31.

Section 4011. Hearine: Procedure
The Hearing Procedure shall be as set forth in Chapters 30 and 31 of these Regulations.

Section 4012. Continuances
Continuances may be permitted pursuant to Chapters 30 and 31 of these Regulations.

Section 4013. Commission Action on Appeal
A. The Commission may affrm or modify the City Manager's determination or, in the event that insufficient information is available to determine the appropriate base rent, the Commission may remand the matter to the City Manager.

Mobilehome Park Rent Stabilzation COmiissmRegulations Page 5 55 B. If the Commission fails to make a decision, the determination of the City Manager shall be final.

C. Except as supplemented herein, Commssion action shall be as set forth in Chapters 30 and 31 of these regulations.

Mobilehome Park Rent Stabilization Commission -Reguations Page 6 56 Chapter 5

FORMULA RENT INCREASES
Section 5001. Scope of Rei?ulations
The regulations contained in this Chapter apply to formula rent increases pursuant to M.M.C.

Section 6708(A).

Section 5002. Consumer Price Index (CPI)
A. The Consumer Price Index used in this regulation shall be as defined in M.M.C.

Section 6701 (F): "CPI" means the Consumer Price Index (All Item) prepared by the Bureau of Labor Statistics for thetos Angeles-Anaheim-Riverside area relating to all urban consumers. If the method of calculating the CPI is subsequently substantially revised, this method shall continue to be used, or the revised CPI shall be adjusted by the City to correspond to this method.

B. The Consumer Price Adjustment Period used in this regulation shall be as defined in M.M.C. Section 6701 (G): "CPI Adjustment Period." The City shall determine a figure constituting the percentage change to the CPI for use as the basis of rent increases. Such figue need only be based upon available data. This figue shall be based on the percentage change in the CPI during the last available 12-month period for which information is available from the United States Bureau of Labor Statistics.

C. As necessar and for good cause, the City Manager may determine a percentage change to the CPI at any time during the year using the previous twelve (12) month period from the date of a request.

Section 5003. CPI Adjustment Period
On or before January 1 of each year, the City Manager shall determine and notice the percentage change in the Consumer Price Index to be used throughout the entire year for formula increases.

Section 5004. Formula Increase
Pursuant to M.M.C. Section 6708(A), space rents may be increased automatically and annually by the total percentage increase in the CPI for the applicable CPI adjustment period as determined by the City Manager. Notwithstading, no space rent shall be increased by more than 5% per year even if CPI increase is greater; and space rent may be increased by up to 2% per year, even ifCPI increase is less than 2%. Calculation of the one-year limit on formula increases shall be from the date the last increase became effective at a paricular space.

Section 5005. Postini? and Notifcation
A. On or before Janua 1 of each year the City Manager shall post the formula increase percentage at the City of Malibu posting places.

Mobilehome Park Rent Stabilization CommisslQIJ Regulations Page 7 57 B. On or before Januar 1 of each year the City Manager shall notify park owners by certified mail, return receipt requested, of the formula increase percentage.

C. On or before Januar i of each year the Park Owner shall post the formula increase percentage in a convenient location at each park.

D. On or before Januar 1 of each year the City Manager shall notify the Mobilehome Park Rent Stabilization Commissioners by mail of the formula increase percentage.

E. The notice shall contain the specific date and descnption of CPI used and shall detail the calculations made in order to determine the maximum formula increase.

Section 5006. Space Rent Increase
The park owner may increase space rents up to the formula increase according to notifications made pursuat to Civil Code Section 798.30.

Section 5007. Separately Biled Services and Capital Improvements No formula increase shall be permitted for separately biled services or capital impròvements.

Mobilehome Park Rent Stabilization Commissiøa.-Regulations Page 8 58 Chapter 6

VACANCY INCREASES
Section 6001. Scope of Ree:ulations
The regulations contained in this Chapter apply to vacancy rent increases pursuant to M.M.C.

Section 6708(B).

Section 6002. Vacancy
A. A space shall be considered vacant when the home is sold, resold, abandoned or when the ownership of the home changes.

B. Change in ownership of the home does not occur under the following circumstaces:

1. Addition or deletion of a spouse to the title due to marage, divorce or death.

2. Addition or deletion of one or more names to title at any time one or more of the prior owners remains the same.

3. When title to home is changed to a trust, the beneficiar(ies) and/or trustee(s) of which are one or more of the prior owners.

4. When title to home is changed to reflect removal of or addition of the holder of a note secured by the home.

5. When title to home is changed to reflect removal of or addition of the names of parents or children to the title, even if the prior owner(s)'s name(s) no longer remain on the title.

6. When title to a home passes to children of the owner.

Section 6003. Increase
Upon vacancy, the park owner may increase the space rent up to 15% of the last space rent charged on vacancy. No increase shall be permitted for separately biled fees, services, capital improvements and the like.

Section 6004. Re-ree:istration
A. The park owner shall re-register the space within sixty (60) days of occupancy by providing to the City Manager:

1. The name and address of the new resident.

Mobilehome Park Rent Stabilization Comiis~Regulations Page 9 59 2. The space affected.

3. The last space rent charged to the previous resident.

4. The new space rent.

B. If the space is subject to a long-term lease exempt from the rent stabilization provisions of the Ordinancepursuantto Civil Code Section 798.17, the park owner shall provide to the City Manager within sixty (60) days information pertining to the duration of the lease, expiration date of the lease, any rent increases provided for by the lease, and the rent in effect when the lease expires (or the formula by which the rent charged under the lease is calculated).

Mobilehome Park Rent Stabilization Coinissi~.Regulations Page 10 60 Chapter 7

GOVERNMENT REQUIRED SERVICES (SPECIAL AN LIMITED RENT)
Section 7001. Scope of Re~ulations
The regulations contained in this Chapter apply to governent required services and special rent and limited rent increases pursuant to M.M.C. Section 6708(D)(1).

Section 7002. Notification to Home Owner
Besides the notification required under M.M.C. Section 6708(D)(1), the park owner shall provide to each affected home owner:

A. Access to copies of the documents requiring added services by the governent.

B. A statement of the actual costs paid in the prior twelve months.

C. The computation of the homeowner charge.

Section 7003. Notifcation to the City
The park owner shall provide to the City Manager a summar of the data required under Section 4002. The summar shall be provided at the same time as the owner notification.

Section 7004. Multi-vear Required Services
A separate notification is required for each 12 month period that a service is in effect.

Mobilehome Park Rent Stabilization Commissi(, Regulations Page 11 61 Chapter 8

CAPITAL IMPROVEMENT
Section 8001. Scope of Re2ulations
The regulations contained in this Chapter apply to capital improvement, special or limited rent increases pursuant to M.M.C. Sections 6708(D)(2) and 6712(C)(l)(a).

Section 8002. Definition
Capital improvements are defined in M.M.C. Section 6701(D).

Section 8003. Request for Capital Improvements
A. The park owner may apply for a capital improvement charge according to Chapters 30 and 31 of these regulations.

B. In addition to the data required in Chapters 30 and 31 ofthese regulations, the park owner shall provide:

1. Curently approved capital improvement pass throughs by space.

2. Signatue (executed under penalty of perjur) of one adult owner from at least 2/3 of the spaces in the park indicating consent to the capital improvement.

3. Final approval by the City Environmental and Building Deparment, if required.

4. Justification of amortization period proposed based upon Internal Revenue Code.

5. Verification of curent prime interest.

Section 8004., Hearin2
The hearing shall be conducted according to Chapters 30 and 31 of these regulations.

Section 8005. Decision and Findin2s
The decision and findings shall be in accordance with Chapters 30 and 31 of these regulations.

Additionally, the findings shall set forth:

A. The approved dollar value of the capital improvement.

B. The interest rate and interest rate computation.

C. The amortization schedule.

Mobilehome Park Rent Stabilzation CommissiqiRegulations Page 12 62 D. The monthly cost for each space affected, computed by adding the total costs (including interest and application fee approved) divided by the amortization period and converted to a monthly rate.

E. At the homeowner's option, the entire principal balance plus accrued interest to date may be paid in one sum at any time.

Section 8006. Implementation of the Payment Chan2e
Implementation of the change shall be in accordance with Chapters 30 and 31 of these Regulations. The capital improvements shall be separately biled to the homeowner.

Section 8007. Review of Commission Decision
Review of the Commission decision shall be in accordance with Chapters 30 and 31 of these Regulations.

Mobilehome Park Rent Stabilization CommisSÌRegulations Page 13 63 Chapter 9

REDUCTION IN SERVICES
Section 9001. Scope of Ree:ulations
The regulations contained in this Chapter apply to a reduction in housing services pursuant to M.M.C. Section 671O(A).

Section 9002. Definition
Pursuant to M.M.C. Section 6701(1), "housing services" means services provided by the park owner related to the use or occupancy of a mobilehome space, including, but not limited to, water and sewer, natual gas, electricity, refuse removal, management and administration (including employee salaries and fringe benefits), maintenance and repairs, supplies, advertising, recreation facilities, laundry facilties, parking, secunty services, insurance, propert taes, governental assessments, and other costs reasonably attributable to the operation of the mobilehome park.

The term "housing services" shall not include legal fees or mortgage payments, whether for principal, interest, or both.

Section 9003. Notifcation to Park Owner
Prior to submitting an application for a rent reduction, the applicant must send written notification to the park owner specifyng the grounds for a possible rent reduction and requesting repair of the condition or restoration of the services. No application for rent reduction may be submitted until 30 days after delivery of the written notice or wrtten refusal to perform the work by the park owner, whichever occurs first.

Section 9004. Request for Rent Adjustment Due to Reduction in Housine: Services A. The park owner or home owner or home owners as a group may apply for a rent adjustment based on a reduction in services in accordance with Chapters 30 and 31 ofthese Regulations.

B. If a housing service alleged reduced or eliminated effects all or other spaces, the Commission may order rent adjustments without new applications.

C. To determine the value of a housing service which has been reduced or eliminated, the Commission shall consider all relevant evidence including any and all of the followig:

1. Information relating to the significance of the reduced service in relation to the safety, health, convenience and comfort of the home owner(s).

2. The prevailing market value ofthe servce as an amenity.

3. The extent to which the home owner relies on the service.

Mobilehome Park Rent Stabilization Commission-Regulations Page 14 64 4. The cost to the park owner of providing the service.

Section 9005. Hearin2
The hearing shall be conducted in accordance with Chapters 30 and 31 ofthese Regulations.

Section 9006. Decision and Findin2s
The decision and findings shall be rendered in accordance with Chapters 30 and 31 of these Regulations.

Section 9007. Implementation of Chan2e
Implementation of the change shall be in accordance with Chapters 30 and 31 of these Regulations.

Section 9008. Review of Commission Decision
Review of the Commission decision shall be in accordance with Chapters 30 and 31 of these Regulations.

Mobilehome Park Rent Stabilization CommissiR.egulations Page 15 65 Chapter 10

RENT INCREASE TO ASSURE A FAIR AND REASONABLE RETURN
Section 10001. . Scope of Reiwlations
The regulations contained in this Chapter apply to rent adjustments pursuant to M.M.C. Sections 6708(C), 6712 and 6721.

Section 10002. Definition
A. Base Rent is defined in M.M.C. Section 6701(B).

B. Space Rent is defined in M.M.C. Section 6701(0).

C. Gross Income is defined in M.M.C. Section 6701(H).

D. Housing Services is defined in M.M.C. Section 6701(1).

E. Operating Expenses is defined in M.M.C. Section 6701(N). Operating expenses shall not include the capital costs and expenses associated with developing rentable spaces, for example, costs of preparing the site, extension or improvement of the infrastructure to accommodate a new site, advertising and rental expenses associated with the first time rental of the space and other costs related to adding a new space to the park.

F. Base Year is defined in M.M.C. Section 6701(C).

G. Net Operating Income is defined as gross anual income plus adjustments required under these Regulations, less anual operating expenses.

H. Current Year shall be the most recent calendar or fiscal year prior to the date of application.

Section 10003. Presumption of a Fair Return
M.M.C. Section 6712 provides that the base rent, as adjusted pursuant to M.M.C. Sections 6708(A) and 6708(B), is presumed to result in a fair return to the park owner in the base year.

Section 10004. Rebuttine; Presumption of a Fair Return in the Base Year Should the Commission determine that the base rents yielded a park owner other than a fair retu on investment, the rent may be adjusted accordingly. In order to make such a determination, the Commission must make at least one of the following findings:

A. The park owner's operating and maintenance expenses in the base year were unusually high or low in companson to other years. In such instances, adjustments may be made in such expenses so the base year operating expenses reflect average expenses for the propert Mobilehome Park Rent Stabilization CommissiRegulations Page 16 66 over a reasonable period of time. The Commission shall consider the following factors:

1. The park owner made substantial capital
improvements which were not reflected in the rent levels on the base year date.

2. Substantial repairs were made due to damage caused by natual disaster or vandalism not reimbursed by insurance.

3. Maintenance and repair was below accepted standards so as to cause significant deterioration in the quality of housing services. .

4. Other expenses were uneasonably high or low, notwithstanding the following of prudent business practice. In makng this determination, the fact that propert taxes prior to 1991 may have been higher than in the base year shall not be considered. It is not the intent of this Chapter to reward or to compensate for ineffcient business practices.

B. The rent on the base date was disproportionate due to one of the enumerated factors below. In such instances, adjustments may be made in calculating gross rents, consistent with the purposes ofM.M.C. Section 6700, et seq.

1. The rent on the base date was established by a lease or other formal rental agreement which provided for substantially higher rent at other periods during the term of the lease, for example a reduced rent during the first year of the lease.

2. The rent on the base date was substantially higher or lower than at other times of the year by reason of seasonal demand or seasonal variations in rent.

3. The rent on the base date was substantially higher or lower than preceding months because of premiums being charged or rebates being given for reasons unque to paricular units or limited to the period determining the base rent.

Section 10005. Application for Adjustment
A. An Applicant may apply for an adjustment to base rent according to Chapters 30 and 31 of these Regulations.

B. In addition to the information required by these Regulations, the applicant shall provide the following:

1. Rental and tenant history for the space(s).

2. Total amount of employee wages and frnge benefits included in operating expenses, decreased by the percentage of time employees whose wages and fringe benefits are wholly included in operating expenses spent performing duties for the park owner which do not relate to provision of housing services or maintaining the park.

3. Total cost of leased/rented equipment or depreciation of owned equipment Mobilehome Park Rent Stabilization Commission -Regulations Page 17 67 included in operating expenses, decreased by the percentàge of time the equipment is utilized for work for the park owner which does not relate to provision of housing services or maintenance of the park.

C. For applications for rent increases based on the Net Operating Income Formula or an alternative method, in addition to the information required by these Regulations, the applicant shall also provide, at a minimum, the following data:

1. The net operating income for the base year and the cUrent year.

2. Space rent for each space.

3. Detailed description of any adjustment to the space rent for each space which shall include adjustments for which park owner was eligible, and those approved, whether implemented or not.

4. Detailed description of uncollected rents due to vacancy or bad debt.

5. Detailed list of income other than space rent.

6. Detailed description of operating expenses for provision of housing services.

7. Total amount of adjustment requested.

8. Total amount of adjustment requested for each space.

9. Documents, books, records, invoices, cancelled checks, financial statements and all other materials which support the application. All records and documents submitted must be readable, including all copies made. To the extent that this information exists in this form, the following should be included (and must be submitted, upon request by staff within 20 days of initial application, when determined by staff to be reasonably required for a meanngful review of the application): (Resolution RC99-03, 03-30-99)
(a) audited financial statements, including a balance sheet, income statement and cash analysis (inflows/outflows);
(b) invoices to specific accounts (using payment vouchers) using adequate descriptions of areas of expense which relate to the expense categories set fort in Sections

6.7.12(A) and 6.7.01(N) and shall be accompanied by a cover document sumarizing all invoices submitted.
(c) cancelled checks organized into the appropriate expense categories set forth in Sections 6.7.12(A) and 6.7.01(N) and shall be accompaned by a cover document sumarizing all cancelled checks submitted.
(d) monthly ban statements to support data on both revenues and expenditues along with ban reconciliations.

Mobilehome Park Rent Stabilization Commissia-"Regulations Page 18 68 (e) books of original entry uourals) with related documents. (f) ledgers of accounts and chars of accounts with related documents. (g) a double-entry accounting or bookkeeping system presenting documents related to the application.
(h) a ledger of fixed assets as necessar for the application. (i) a sumar of all written accounting procedures used with the related documents.
u) a purchase order system, traceable to accounting records, showing order, receipt and payment.
(k) a payroll system which interfaces with the accounting records.

Section 10006. Net Operatine Income Formula
A. The park owner may request a rent adjustment in order to permit the owner to receive a just and reasonable retu. The Commission wil determine whether the park owner is receiving a fair and reasonable retur based on the Net Operating Income (NOn Formula set forth in these Regulations. It is presumed that this formula will assure a fair and reasonable return on the park owner's investment.

B. A rent adjustment shall be approved in order to provide a fair and reasonable retur and maintain net operating income in accordance with the following formula: Net Operating Income equals gross income minus operating expenses. A fair NOI is 75% of the percentage increase in the CPI over the base year. (For example, if the CPI has increased by 10% since base year, the park shall be entitled to a NOI which is 7.5% above the base year level).

C. The park owner shall adjust the base year gross income upward for any space(s) occupied by the park owner, park owner's family, or by a manager, agent or employee where the space was rent free or charged at a rent level below that of comparable spaces.

D. For each space removed from park use since the base year, the park owner shall adjust the curent gross income upward at the space rent which would have existed had the space not been removed from use.

E. The park owner shall adjust the current year gross income upward in the amount of any increases the park owner is eligible to receive under the provisions of the Malibu Municipal Code but which the park owner has not yet imposed.

F. If a space is added to the park after i 984 and is not exempted from rent control by state law, the park owner shall adjust the gross income upward for the year the space is added and for each succeeding year.

Mobilehome Park Rent Stabilization Commissi~Jj.Regulations Page 19 69 G. If a park owner is earng its base year NOI, after any adjustment pursuant to Section 10004 and 10008, adjusted by 75% ofCPI, it is presumed that the park owner is receiving a fair retu and no increases in rent are waranted. If the park owner is not receiving a fair retu as defined herein, the Commission shall grant rent increases accordingly. The Commission may increase rents to the minimum level necessar to assure a fair retu based on the evidence in the record.

Section 10007. Alternative Methods of Assurin!! a Fair Return A park owner may rebut the presumption that the increase calculations provided in Section 10006 of these Regulations are sufcient to provide a fair and reasonable retur by showing that the rate of retu on its investment being eared by the park owner is not fair and reasonable even afer adjustments in rents are made pursuant to Section 10006 of these Regulations.

The Commission shall consider all relevant evidence, including, but not limited to, the following:

A. The rent being charged by comparable mobilehome parks.

B. The rate of retur on investment eared by the park owner in 1985 and 1991, the rate of retu of investment earned by the park owner in each year since 1991, including the rate of retu on investment eared in the most recent calendar year.

C. The average rate of retu on investment eared by other mobilehome parks in the City and surounding areas during the year the application is filed and each of the 5 preceding years.

D. The mobilehome park's pattern of income and expenses over each of the past 5 years.

E. The quality of the services, amenities and maintenance provided at the mobilehome park and any decrease or increase in services, maintenance and amenities in the curent year.

Section 10008. Selecting a different base year
If the Commission determines that, after reasonable effort, information is unavailable for the base year or the base year is not representative, the Commission may select a new base year by designating the next chronological year for which information is available and which is representative.

Section 10009. Hearin!!
The hearing shall be conducted according to Chapters 30 and 31 of these Regulations.

Section 10010. Decision and Findin!!s
The decision and findings shall be made in accordance with Chapters 30 and 31 of these Regulations and shall take into account those factors set forth in M.M.C. Section6713.

Mobilehome Park Rent Stabilization Commissi~ Regulations . Page 20 70 Section 10011. Implementation of Adjustment
Implementation of the change shall occur in accordance with Chapters 30 and 31 of these Regulations.

Section 10012. Review of Commission Decision
Review of the Commission decision shall be in accordance with Chapters 30 and 31 of these Regulations.

Mobilehome Park Rent Stabilization Commissi Regulations Page 21 71 Chapter 11

NECESSARY INFRASTRUCTURE IMPROVEMENTS
Section 11001. Scope of Reiwlations
The regulations contained in this Chapter apply to necessar infastructue improvements as set fort in M.M.C. Sections 6701(M.5) and 6708(D)(2).

Section 11002. Definition
Necessary infrastructue improvements are defined in M.M.C. Section 6701(M.5).

Section 11003. Request for Necessary Infrastructure Improvements A. The park owner may apply for a necessar infrastructure improvement charge by submitting a complete application to the City Manager. The application shall be in sufficient detail to permit a reasonable person to adequately review the request and, at a minimum, shall include the following:

1. Description and rationale for the application and the proposed improvement with copies of at least three bids from qualified bidders.

2. Total dollar amount of the application.

3. The current and proposed MAR, or service charge, as applicable, for each affected space.

4. Detailed information on leases pursuant to M.M.C. Section 671O(D).

5. Documentation to demonstrate the industr standard for maintenance of the proposed improvement. Documentation establishing park owner's substantial compliance with the industry standard. All other documents, books, records, invoices, canceled checks, financial statements, and similar documentation which support the application.

6. Additional data required to support the application as set forth in the Regulations under which the application is made.

7. Proof of service signed under penalty of perjury that all affected paries have been notified pursuant to M.M.C. Section 6710(A)(2).

B. A park owner's application is not complete unless the park is current in all registration and fee requirements.

C. Within twenty (20) days of receipt of the application, the City Manager shall notify the applicant whether the application is complete. The application shall be deemed filed as of the date of notice of a complete application or, if no notice is sent, twenty (20) days after submission.

Mobilehome Park Rent Stabilization ComrissÜm-Regulations Page 22 72 D. Within ten (10) days of filing, the City Manager shall send notice to the applicant and to each affected pary of the date, time and place of hearng on the application and of the availability of the application and supporting documents for review at City Hall during normal business hours. The hearing shall be set no sooner than twenty (20) days and no later than fort (40) days after filing of a complete application.

E. Any person may order and purchase a copy of the application and supporting documents and same shall be delivered promptly to insure that those wishing to be informed prior to and paricipate in the hearing may do so.

Section 11004. ODDosition
A. All documentar evidence presented by any individual or group or individuals opposing any application shall be received no later than fifteen (15) days prior to the scheduled hearng date.

B. Any person may order and purchase a copy of the opposing documentar evidence and the staff report, and same shall be delivered promptly to insure that those wishing to be informed prior to and participate in the hearng may do so.

Section 11005. SUDDlemental and Rebuttal Evidence
Documenta evidence not presented prior to the date for completion of the Staff Report may be considered if good cause is demonstrated as to why it was not submitted prior to the hearing.

Section 11006. Evidence
A. Formal rules of evidence or procedure which must be followed in cour shall not apply to administrative proceedings except as follows:

1. Paries submitting documentar evidence shall execute a declaration under penalty of perjur that the matters set forth in the documents are true either to their personal knowledge or upon information and belief. If the document is a copy, the declaration shall include a statement that the document is a true copy of the originaL.

2. Witnesses shall be sworn and shall testify truthfully under penalty of perjur.

B. Each written statement to be considered evidence shall:

1. Be made under penalty of perjur.

2. Set forth the full name and curent residence and business address and telephone number of the person makng the statement.

Section 11007. Hearin2:

Mobilehome Park Rent Stabilzation CommissI6íl -Regulations Page 23 73 The City Manager or his designee shall conduct a duly noticed public hearing prior to rendering a decision.

Section 11008. Decision and Findint!s
The City Manager's decision and findings shall be in writing. Additionally, the findings shall set forth:

A. The approved dollar value ofthe necessary infrastructue improvement.

B. The interest rate and interest rate computation.

C. The amortization schedule.

D. The monthy cost for each space affected, computed by adding the total costs(irtcluding interest and application fee approved) divided by the amortization period and converted to a monthly rate.

Section 11009. Implementation of the Payment Chant!e
Implementation of the change shall be in accordance with Chapters 30 and 31 of these Regulations. The necessar infastrctue improvements shall be separately biled to the homeowner. At the homeowner's option, the entire principal balance plus accrued interest to date may be paid in one sum at any time.

Section 11010. deleted.

Mobilehome Park Rent Stabilization CommissierlRegulations Page 24 74 Chapter 30

GENERA PROCEDURES FOR RENT ADJUSTMENT APPLICATIONS
Section 30001. Scope of Reeulations
The regulations contained in this Chapter apply to all applications for rent adjustments as authorized by M.M.C. Section 6700, et seq. These Regulations are in addition to regulations in other Chapters of the Malibu Mobilehome Rent Stabilization Commssion Regulations.

Section 30002. Applications
A. All applications shall be in writing and in a form prescribed by the City Manager, or in letter form which shall provide the same information as required on the form prescribed by the City Manager and as required in these Regulations.

B. The applicant shall pay a filing fee with the application in the form of a check or money order made payable to the City of Malibu. The filing fee shall be determined by resolution of the Malibu City CounciL.

C. The application shall be in sufficient detail to permit a reasonable person to adequately review the request and shall, at a minimum, include:

1. Description and rationale for the application.

2. Total dollar amount of the application.

3. The current and proposed base rent, or service charge, as applicable, for each affected space.

4. Detailed information on leases pursuant to M.M.C. Section 671O(D).

5. Documents, books, records, invoices, canceled checks, financial statements, etc. which support the application.

6. Additional data required to support the application as set forth in the Regulations under which the application is made.

7. Proof of service signed under penalty of perjury that all affected parties have been notified pursuant to M.M.C. Section 6710(A)(2).

D. A park owner's application is not complete uness the park is curent in all registration and fee requirements.

E. The application is complete if all information required in sub-sections 1 through 7 hereof is provided and all application fees have been paid to the City; and additionally upon Mobilehome Park Rent Stabilization Cornissi~-Regulations Page 25 75 compliance with sub-sections (D) and (E) hereof if applicant is a park owner.

F. Within ten (10) days of receipt of a completed application, the City Manager shall send notice to the applicant and to each affected par of the date, time and place of hearing on the application and of the availability of the application and supporting documents for review at City Hall during normal business hours.

G. Any person may order and purchase a copy of the application and supporting documents and same shall be delivered within three (3) days to insure that those wishing to be informed prior to and paricipate in the hearing may do so.

Section 30003. Opposition
A. All documentar evidence presented by any individual of group or individuals opposing any application shall be received by the City within twenty (20) days of the application being deemed complete. (Resolution RC99-02, 03-30-99)
B. Within fifteen (15) to twenty-five (25) days after the deadline for receiving opposing evidence, the City Manager shall prepare a staff report. (Resolution RC99-02, 03-30-99) C. Any person may order and purchase a copy of the opposing documentar evidence and the staff report, and same shall be delivered within three (3) days to insure that those wishing to be informed prior to and paricipate in the hearing may do so.

Section 30004. Supplemental and Rebuttal Evidence
Documentar evidence not presented prior to the date for completion of the Staff Report may be considered ifgood cause is demonstrated as to why it was not submitted on time.

Section 30005. Evidence
A. Formal rules of evidence or procedure which must be followed in cour shall not apply to Commission proceedings except as follows:

1. Paries submitting documentar evidence shall execute a declaration under penalty of perjur that the matters set forth in the documents are true either to their personal knowledge or upon information and belief If the document is a copy, the declaration shall include a statement that the document is a tre copy of the originaL.

2. Witnesses shall be sworn and shall testify trthfully under penalty of perjur.

B. Each written statement to be considered evidence shall:

1. Be made under penalty of perjury.

2. Set forth the full name and current residence and business address and telephone number of the person making the statement.

Mobilehome Park Rent Stabilization Commissi611-Regulations Page 26 76 Section 30006. Staff Report
A. No later than fifteen (15) days prior to the scheduled date of the hearing the City Manager shall prepare a staff report containing the following, in addition to specific matters required to be included pursuant to regulations for paricular applications: (Resolution RC99-02, 03-30-99)

1. Sumar of the application and the staffs recommendation.

2. Sumar of the applicant's arguments in favor of the application.

3. Sumar of any opposing evidence.

4. Sumar of any arguents received from opponents ofthe application.

5. List of discrepancies or inconsistencies in the application.

6. Specific notes of any facts or figues the City Manager believes are not adequately supported by the applicant.

B. A copy of the staff report shall be made available at City Hall.

Section 30007. Documents to be Reviewed by Commissioners A. The Commissioners shall review the application, supporting documentar evidence, opposition and evidence, staff report and all correspondence and other notes prior to the scheduled hearing.

B. In order to effectuate the provisions of sub-section (A), the City Manager shall deliver to each Commissioner no later than fifteen (15) days prior to the scheduled hearing date copies of the application, supporting documentar evidence, opposition and evidence, staff report and all correspondence and other notes. (Resolution RC99-02, 03-30-99) C. All documents relating to a hearing which arrve after the package described in sub-section (B) has been delivered shall be delivered to each Commssioner on the same day they are received with a note clearly setting forth the date and time each arived.

Section 30008. L02 of Applications
The City Manager shall maintaiIi as a public record a log setting forth each application or appeal received. This log shall contain the following:

A. Any control number assigned.

B. Date the application or appeal was received.

C. Date the application or appealwas filed.

Mobilehome Park Rent Stabilization Commission -Regulations Page 27 77 D. Name of par/entity presenting the application or appeal to be filed.

E. Names of affected paries.

F. Type of application or appeal submitted.

G. Date(s) documentar evidence supporting the application or appeal was received, including supplemental submissions.

H. Date(s) documenta evidence and/or argument opposing the application or appeal is received, including supplemental submissions.
i. Date scheduled for hearng.

J. Date Staff Report is due.

K. Date Staff Report is completed.

L. Date(s) document package(s) must be delivered to Commissioners.

M. Date(s) document package(s) actually delivered to Commissioners.

N. Date(s) of receipt ofrequest(s) for continuance and any continuance granted by the Commission.

O. Date of hearing; include all dates if hearing occurs on more than one date.

P. Date of receipt of Commission decision.

Q. Date of posting notice offiling of Commission decision.

Section 30009. Notice of Commission decision
The City Manager shall send a copy of the final Commission decision to all paries as sOOn as it is available. The notice shall contain a provision as to how the decision may be appealed in civil cour pursuant to Code of Civil Procedure Section 1094.5.

Section 30010. Implementation of Chane:e
The City Manager shall note in the City's records for each space all adjustments in rent relating to that space and said shall be permanently maintained as a public record which shall reflect the following:

A. The initial base rent determination.

B. The date each increase or decrease was ordered by the Commission.

Mobilehome Park Rent Stabilization Commissi6ß-Regulations Page 28 78 C. The date for implementation of increases or decreases ordered by the Commission.

D. The curent maximum allowable rent.

E. Each permitted additional charge, its date of implementation and completion.

Mobilehome Park Rent Stabilization CommissiMRegulations Page 29 79 Chapter 31

HEARINGS AND DECISIONS
Section 31001. Scope of Rel!ulations
The regulations contained in this Chapter apply to all hearings before and decisions of the Malibu Mobilehome Park Rent Stabilzation Commission held pursuant to M.M.C. Section 6700, et seq.

Section 31002. Hearinl!s
A. A hearing on an application shall be scheduled no earlier than twenty (20) days and no later than forty (40) days after the completed application is accepted for filing.

B. The hearng shall be conducted according to M.M.C. Section 6711 and these Regulations.

C. The hearing shall be conducted by a quorum of the Commission.

D. The hearing shall proceed in the following order:

1. Presentation of the staff report.

2. Presentation on behalf of applicant, including testimony of any affected paries and witnesses in support of the application.

3. Presentation on behalf of opponents, including testimony of any affected paries and witnesses in opposition to the application.

4. Rebuttl by applicant.

E. The burden of proof shall be on the applicant to demonstrate its case by a preponderance of the evidence.

F. All parties to the hearing may have assistace from an attorney or such other person as may be designated by the paries in presenting evidence or arguing their position.

G. In the event that either the park owner or the homeowner(s) should fail to appear at the hearing at the specified time and place, the Commission may hear and review such evidence as may be presented and make such decisions as if both parties had been present.

H. All hearings shall be tape-recorded. Tapes shall be preserved for two (2) years.

1. Commissioners may ask questions of any witness at the end of that witnesses testimony if the need arises.

Mobilehome Park Rent Stabilization CommissiqJoRegulations Page 30 80 J. Formal rules of evidence or procedure which must be followed in cour shall not apply to Commssion proceedings except as follows:
i. Paries submitting documentar evidence shall execute a declaration under penalty of perjur that the matters set forth in the documents are true either to their personal knowledge or upon information and belief. If the document is a copy, the declaration shall include a statement that the document is a true copy of the originaL.

2. Witnesses shall be sworn and shall testify under penalty of perjur.

3. Each written statement used as evidence shall:
a) Be made under penalty of peijur. '
b) Set fort the full name and curent residence and business address and telephone number of the person makng the statement.

K. Unless specifically requested by the Commission at a public meeting, no documentar evidence or written or oral argument shall be sent or made to the Commission or to any Commissioner by any pary or member of the public after the conclusion of the hearng.

L. No Commissioner shall request or accept documentar evidence or wrtten or oral argument from any pary or member of the public after the conclusion of the hearng.

Section 31003. Continuance
The Commission may continue a hearing on its own motion or at the request of an applicant or affected par.

Section 31004. Decorum at Hearin2
A. Hearngs shall begin promptly. Late arvals shall seat themselves quietly, without interrpting the proceedings.

B. Because the hearing must be tape recorded, and because members of the public wish to hear what is being said, all speakers (including Commissioners and staff shall speak loudly and clearly so the record will be clear and the audience can hear. Those persons who canot, for any reason, speak loudly and clearly may assign someone who can do so to make any oral presentation on their behalf.

C. There shall be no noise, whispering, outcries, audible expressions of approval or disapproval, or any other tye of disruption by any person in the hearng room at any time during the hearing. Such disruptions are discoureous to all concerned and wil not be tolerated.

Offending paries shall be wared by the Chair. If disruptions continue, the Chair may remove offending paries in order to insure that the hearing may go forward without fuher disruption or delay.

Mobilehome Park Rent Stabilization Commissici Regulations Page 31 81 D. There shall be no smoking at any time and no side conversations durng the hearing in the hearing room, in the hallways outside the hearing room or in other rooms in the building where the hearing is held. Persons wishing to engage in these activities shall go outside the building.

E. All persons attending or paricipating in the hearing in any fashion shall treat others with the same couresy and respect with which they expect to be treated.

F. Commissioners, paries and the audience shall hot interrpt the presentation of a pary or testimony of a witness.

G. Vulgar or offensive language and/or behavior shall not be tolerated.

H. The Chair shall enforce these regulations as is necessar and appropnate in order to insure a fair hearng to the participants and that the hearing is concluded without undue delay.

Section 31005. Decision of the Commission
A. The findings and conclusions of the Commission shall be wntten. The Commission may adopt a proposed resolution prepared by the Staff, may amend a proposed resolution and adopt it at the conclusion of the hearng, may direct staff to prepare a resolution consistent with the Commission's decision, or may prepare a resolution at the hearing.

B. The decision shall become final upon adoption of the resolution. The City Manager shall mail the applicant a copy of the decision.

Section 31006. Implementation of Chane:e
A. Any increase in rent granted by the Commission shall be noticed by the park owner pursuant to state law. A rent reduction shall go into effect the next date that rent is due after the date of the Commission's final decision.

B. The City Manager shall note in the City's records for each space all adjustments in rent relating to that space and said shall be permanently maintained as a public record which shall reflect:

1. The initial base rent determination.

2. The date each increase or decrease was ordered by the Commission.

3. The date for implementation of increases or decreases ordered by the Commission.

4. The curent maximum allowable rent.

Mobilehome Park Rent Stabilization CommissfRegulations Page 32 82 Chapter 32

REGULATIONS GOVERNING COMMISSION MEETINGS
Section 32001. Scope of Rei!lations
The regulations contained in this Chapter apply to meetings, other than hearngs, of the Malibu Mobilehome Park Rent Stabilization Commission.

Section 32002. Preparation for Meetin!!
A. Commissioner packets, including the agenda, shall be delivered to Coinssioners no later than 2:00 p.m. on the day which is seven (7) days prior to each regular or adjourned Commission meeting.

B. The City Manager shall prepare the agenda for the Commission meeting pursuat to instructions from the Commssion.

C. The City Manager shall post the agenda and make the meeting packet available at each of the thee legal posting places of the City of Malibu no later than close of business 72 hours prior to the meeting.

Section 32003. Meetin!! Conduct and Decorum
A. Absent agreement of the Commissioners, no meeting shall be scheduled except on the regularly scheduled meeting day or continued meeting day of the Commission.

B. Meetings shall begin promptly. Late arivals shall seat themselves quietly, without interrpting the proceedings. Similarly, following a break, those ariving after the meeting has resumed shall seat themselves quietly without interrpting the proceedings.

C. Because the meeting is being tape recorded, and because members of the public wish to hear what is being said, all speakers (including Commissioners and staff) shall speak loudly and clearly so the record will be clear should reference need to be made to it. Those who . canot speak loudly and clearly may ask someone else to make their oral presentation or should present their comments in writing.

D. There shall be no noise, whispering, outcries or any other tye of disruption by any person at any point dtiing the meeting. Such disruptions are discoureous to the Commissioners and attendees and may well obliterate the tape-recording being made ofthe meeting. Offending paries will be warned to be quiet by the Chair. If disruptions continue, the Chair may remove offending paries in order to insure that the meeting may go forward without interrption.

E. Those persons who wish to converse may do so in the parking lot outside the building as sound cares clearly into the meeting room from the hallways.

F. There shall be no smoking in the meeting room.

Mobilehome Park Rent Stabilization Commissien-Regulations Page 33 83 G. All persons attending or paricipating in the meeting in any fashion shall treat others with the same couresy and respect with which they expect to be treated.

H. Commissioners and attendees shall not interrpt each other or talk over each other.

They shall seek recognition by the Chair before speaking. i. Vulgar or offensive language and/or behavior shall not be tolerated.

J. The Chair shall enforce these regulations as is necessary and appropriate in order to insure meeting decoru without unduly limiting public paricipation.

Section 32004. Excused absences
For good cause, the Chair, Vice Chair or a majority ofthe Commission members may excuse an absence of any of its members.

Section 32005. Commission Agendas and Commissioner Packets A. Prior to preparing the Commission Agenda, the City Manager shall verify with the Commission Chair the matters to be included on the agenda, including any closed session to be noticed.

B. The City Manager shall complete the Commission Agenda and prepare Commissioner packets, which shall include the Agenda, minutes of prior meetings remaining to be approved, and all materials to be considered or discussed at the meeting no later than seven (7) days prior to each scheduled meeting, or if a special meeting, as many days as possible prior to the meeting, but in no event less than three (3) days prior to the meeting.

C. The City Manager shall make available the Commission Agenda and Commssioner packet to each CoiIssioner no later than 2:00 p.m. seven (7) days prior to the meeting. If a special meeting is scheduled which does not permit materials to be delivered seven (7) days prior to the meeting, they shall be available as many days as possible prior to the meeting.

Mobilehome Park Rent Stabilization Commissiøu.-Regulations Page 34 84 PRIOR CODE CROSS-REFERENCE TABLE
This table provides users with the current disposition of the sections in the Malibu Municipal Code contained in Ordinance 28 § i.

Prior
Code §
Article I
1100
1101
1102
1103
1104
1105
1106
1200
1201
1202
1300
1301
1302
1303
1304
1305
1306
1307
1308
1309
1310
1311
1312
1313
1314
1315
1316
1317
1318
1319
1320
1321
Herein
Not codified
Not codified
Not codified
Not codified
Not codified
Not codified
Not codified

1.16.010

1.08.010-1.08.090
Not codified

1.04.010

1.04.020

1.04.030

1.04.040

1.04.050

1.04.060

1.04.070

1.04.080

1.04.090

1.04.100

1.04.11 0

1.04.120

1.04.130

1.04.140

1.04.150

1.04.160

1.04.170

1.04.180

1.04.190

1.04.200

1.04.210

1.04.220
-65-
Prior
Code §
1322
1323
1324
1325
1326
1327
1400
1401
1500
1600
1701
Article II
2100
2101
2102
2103
2104
2105
2106
2107
2108
2109
2110
2111
2200
2201
2202
2203
2300
2301
2400
2500
2501
Herein

1.04.230

1.04.240

1.04.250

1.04.260

1.04.270

1.04.280

3.04.020

3.04.030

1.12.010

3.08.010

2.08.020

2.12.010
Repealed by 156

2.12.020

2.12.030

2.12.040

2.12.050

2.12.060

2.12.070

2.12.080
Repealed by 156

2.12.090

2.12.100

2.04.010

2.04.020

2.04.030

2.08.010

2.04.040

2.04.050

2.08.030

3.04.010

2.16.010
ATTACHMENT 3
85 Prior Prior
Code § Herein Code § Herein
2502 2.16.020 2900 2.64.010
2503 2.16.030 2901 2.64.020
2600 3.08.020 2902 2.64.030
2601 3.08.030 2903 2.64.040
2602 3.08.040 2904 2.64.050
2603 3.08.050 2905 2.64.060
2604 3.08.060 2906 2.64.070
2605 3.08.070 2907 Repealed by 239
2606 3.08.080 2908 Repealed by 239
2607 3.08.090 21000 2.20.020
2620 3.32.010 21001 2.20.020
2621 3.32.020 21002 2.20.030
2622 3.32.030 21003 2.20.040
2623 3.32.040 21004 2.20.050
2624 3.32.050 21005 2.20.060
2625 3.32.060 21006 2.20.070
2701 2.56.010 210.500 2.08.040
2702 2.56.020 21 100 2.36.010
2703 2.56.030 21101 2.36.020
2704 2.56.040 21102 2.36.030
2705 2.56.050 21103 2.36.040
2706 2.56.060 21104 2.36;050
2707 2.56.070 21 105 2.36.060
2708 2.56.080 21 106 2.36.070
2709 2.56.090 21107 2.36.080
2710 2.56.100 21108 2.36.090
2711 2.56.110 21109 2.36.100
2712 2.56.120 21110 2.36.110
2713 2.56.130 21111 2.28.010
2714 2.56.140 21112 2.28.020
2715 2.56.150 21113 2.28.030
2716 2.56.160 21114 2.44.010
2717 2.56.170 21115 2.44.020
2718 2.56.180 21116 2.44.030
2800 2.24.010 21117 2.44.040
2801 2.24.020 21118 2.44.050
2802 2.24.030 21119 2.44.060
2803 2.24.040 21120 2.44.070
2804 2.24.050 21121 2.44.080
-66-
86 Prior Prior
Code § Herein Code § Herein
21122 2.44.090 21203 5.28.040
21123 2.44.100 21204 5.28.050
21124 2.44.110 21205 5.28.060
21125 2.48.010 21206 5.28.070
21126 2.48.020 21207 5.28.080
21127 2.48.030 21208 5.28.090
21128 2.48.040 21209 5.28.100
21129 2.48.050 21210 5.28.110
21130 2.48.060 21211 5.28.120
21131 2.48.070 21301 2.60.010
21132 2.48.080 21302 2.60.020
21133 2.48.090 21303 2.60.030
21134 2.48.100 21304 2.60.040
21135 2.48.110 21305 2.60.050
21136 2.32.010 21306 2.60.060
21137 2.32.020 Article II
21138 2.32.030 3100 8.12.010
21139 2.32.040 3101 8.12.020
21140 2.32.050 3102 8.12.030
21141 2.32.060 3103 8.12.040
21142 2.32.070 3200 10.04.010
21143 2.32.080 3201 10.04.020
21144 2.32.090 3202 5.24.010
21145 2.32.100 3203 5.24.020
21146 2.32.110 3204 5.24.030
21147 2.40.010 3205 Repealed by 158
21148 2.40.020 3206 5.24.040
21149 2.40.030 3207 10.08.010-10.08.030
21150 2.40.040 3300 6.04.010
21151 2.40.050 3301 Repealed by 235
21152 2.40.060 3302 6.04.020
21153 2.40.070 3400 8.16.010
21154 2.40.080 3401 8.16.020
21155 2.40.090 3500 13.08.010
21156 2.40.100 3501 13.08.020
21157 2.40.110 3600 2.52.010
21200 5.28.010 3601 2.52.020
21201 5.28.020 3602 2.52.030
21202 5.28.030 3603 2.52.040
-67-
87 Prior Prior
Code § Herein Code § Herein
3604 2.52.050 4113 Repealed by 229
3605 2.52.060 4114 9.16.010
3606 2.52.070 4115 9.16.020
3607 2.52.080 4116 9.16.030
3608 2.52.090 4117 9.16.040
3609 2.52.100 4118 9.16.050
3700 10.12.010 4119 9.16.060
3701 10.12.020 4120 9.16.070
3702 10.12.030 4125 9.04.040
3703 10.12.040 4126 9.04.050
3704 10.12.050 4127 9.04.060
3705 10.12.060 4128 9.04.070
3706 10.12.070 4129 9.04.080
3707 10.12.080 4130 9.04.090
3708 10.12.090 4135 9.16.050
3709 10.12.100 4136 9.16.090
3710 10.12.110 4137 9.12.010
3711 10.12.120 4138 9.12.020
3712 10.12.130 4139 9.12.030
3713 10.12.140 4200 8.24.010
3714 10.12.150 4201 8.24.020
3715 10.12.160 4202 8.24.030
3716 10.12.170 4203 8.24.040
3901 3.32.070 4204 8.24.050
Aricle IV 4205 8.24.060
4100 9.04.010 4206 8.24.070
4101 9.08.010 4300 8.28.010
4102 9.08.020 4301 8.28.020
4103 9.04.020 4302 8.28.030
.4104 9.08.030 4303 8.28.040
4105 9.08.040 4304 8.28.050
4106 9.08.050 4305 8.28.060
4107 9.08.060 4306 8.28.070
4108 9.08.070 4307 8.28.080
4109 9.04.030 4308 8.28.090
4110 9.08.080 4309 8.28.100
4111 Reserved 4400 10.16.010
4111.5 9.08.090 4401 10.16.020
4112 Reserved 4410 10.16.030
-68-
88 Prior Prior
Code § Herein Code § Herein
4411 10.16.040 4800 8.08.010
4412 10.16.050 4801 8.08.020
4413 10.16.060 4802 8.08.030
4420 10.16.070 4803 8.08.040
4421 10.16.080 4804 8.08.050
4422 10.16.090 4805 8.08.060
4423 10.16.100 4806 8.08.070
4424 10.16.110 4807 8.08.080
4425 10.16.120 4808 8.08.090
4426 10.16.130 4809 8.08.100
4427 10.16.140 4810 8.08.110
4428 10.16.150 4811 8.08.120
4501 5.12.010 4812 8.08.130
4502 5.12.020 4813 8.08.140
4503 5.12.030 4814 8.08.150
4504 5.12.040 4815 8.08.160
4505 5.12.050 4816 8.08.170
4506 5.12.060 4900 8.20.010
4507 5.12.070 4901 8.20.020
4508 5.12.080 4902 8.20.030
4509 5.12.090 4903 8.20.040
4510 5.12.100 4904 8.20.050
4511 5.12.110 4905 8.20.060
4512 5.12.120 4906 8.20.070
4513 5.12.130 4907 8.20.080
4600 12.08.010 4908 8.20.090
4601 12.08.020 4909 8.20.100
4602 9.20.020 4910 8.20.110
4603 9.20.030 4911 8.20.120
4604 9.20.040 4912 8.20.130
4605 9.20.050 4913 8.20.140
4606 9.20.060 4914 8.20.150
4607 9.20.070 4915 8.20.160
4625 12.08.020 4916 8.20.170
4626 12.08.020 4917 8.20.180
4627 12.08.030 4918 8.20.190
4627.5 12.08.030 4919 8.20.200
4628 12.08.030 Article V
4629 12.08.030 5100 8.04.010
-69-
89 Prior Prior
Code § Herein Code § Herein
5110 8.04.020 5246 8.32.360
5111 8.04.030 5247 8.32.370
5112 8.04.040 5248 8.32.380
5130 8.04.050 5249 8.32.390
5200 8.32.010 5250 8.32.400
5201 8.32.020 5251 8.32.4 10
5202 8.32.030 5252 8.32.420
5203 8.32.040 5253 8.32.430
5204 8.32.050 5254 8.32.440
5205 8.32.060 5260 8.32.450
5206 8.32.070 5261 8.32.460
5207 8.32.080 5262 8.32.470
5208 8.32.090 5263 8.32.480
5209 8.32.100 5264 8.32.490
5210 8.32.110 5265 8.32.500
5211 8.32.120 5266 8.32.510
5212 8.32.130 5267 8.32.520
5213 8.32.140 5268 8.32.530
5214 8.32.150 5269 8.32.540
5220 8.32.160 5270 8.32.550
5221 8.32.170 5271 8.32.560
5222 8.32.180 5280 8.32.570
5223 8.32.190 5281 8.32.580
5224 8.32.200 5282 8.32.590
5225 8.32.210 5283 8.32.600
5226 8.32.220 5284 8.32.610
5227 8.32.230 5285 8.32.620
5228 8.32.240 5286 8.32.630
5229 8.32.250 5287 8.32.640
5230 8.32.260 5288 8.32.650
5231 8.32.270 5289 8.32.660
5232 8.32.280 5290 8.32.670
5233 8.32.290 5291 8.32.680
5240 8.32.300 5292 8.32.690
5241 8.32.3 10 5293 8.32.700
5242 8.32.320 5400 13.04.010
5243 8.32.330 5401 13.04.020
5244 8.32.340 5402 13.04.030
5245 8.32.350 5403 13.04.040
-70-
90 Prior Prior
Code § Herein Code § Herein
5404 13.04.050 6304 5.04.050
5405 13,04.060 6305 5.04.060
5406 13.04.070 6306 5.04.070
5407 13.04.080 6307 5.04.080
5408 13.04.090 6308 5.04.090
5409 13.04.100 6309 5.04.100
5409.5 13.04.110 6310 5.04.110
5410 13.04.120 6311 5.04.120
5411 13.04.130 6312 5.04.130
Article VI 6313 5.04.140
6100 3.20.010 6314 5.04.150
6101 3.20.020 6315 5.04.160
6102 3.20.030 6325 5.08.010
6103 3.20.040 6326 5.08.020
6104 3.20.050 6400 3.24.010
6105 3.20.060 6401 3.24.020
6106 3.20.070 6402 3.24.030
6107 3.20.080 6403 3.24.040
6108 3.20.090 6404 3.24.050
6109 3.20.100 6405 3.24.060
6110 3.20.110 6406 3.24.070
6111 3.20.120 6407 3.24.080
6112 3.20.130 6408 3.24.090
6113 3.20.140 6409 3.24.100
6114 Not codified 6410 3.24.110
6200 3.16.010 6411 3.24.120
6201 3.16.020 6412 3.24.130
.6202 3.16;030 6413 3.24.140
6203 3.16.040 6500 3.28.010
6204 3.16.050 6501 3.28.020
6205 3.16.060 6502 3.28.030
6206 3.16.070 6503 3.28.040
6207 3.16.080 6504 3.28.050
6208 3.16.090 6505 3.28.060
6209 3.16.100 6506 3.28.070
6300 5.04.010 6507 3.28.080
6301 5.04.020 6508 3.28.090
6302 5.04.030 6509 3.28.100
6303 5.04.040 6510 3.28.110
-71-
91 Prior Prior
Code § Herein Code § Herein
6511 3.28.120
6512 328.130
6513 328.140
6514 328.150
6515 3.28.160
6516 328.170 i: 6801 3.12.010
6517 328.180 6802 3.12.020
6600 Repealed by 282 6803 3.12.030
6601 Repealed by 282 6804 3.12.040
6602 Repealed by 282 6805 3.12.050
6603 Repealed by 282 6806 3.12.060
6604 Repealed by 282 6807 3.12.070
6605 Repealed by 282 6808 3.12.080
6606 Repealed by 282 6809 3.12.090
6607 Repealed by 282 6810 3.12.100
6608 Repealed by 282 6811 3.12.110
6609 Repealed by 282 6812 3.12.120
6610 Repealed by 282 6813 3.12.130
6611 Repealed by 282 Article VII
6612 Repealed by 282 7100 12.04.010
7101 12.04.020
7200 13.12.010
7201 13.12.020
7202 13.12.030
7203 13.12.040
7204 13.12.050
7205 13.12.060
7206 13.12.070
7207 13.12.080
7208 13.12.090
7209 13.12.100
7210 13.12.110
7211 13.12.120
Article VII
8100 15.04.010
8101 15.04.020
8102 15.04.030
8200 15.08.010
8201 15.08.020
-72-
92 Prior Prior
Code § Herein Code § Herein
8202 15.08.030 9220 17.10.010
8300 15.12.010 9221 17.10.020
8301 15.12.020 9222 17.10.030
8302 15.12.030 9223 17.10.040
8303 15.12.04.0 9224 17.10.050
8304 15.12.050 9230 17.12.010
8400 15.16.010 9231 17.12.020
8401 15.16.020 9232 17.12.030
8402 15.16.030 9233 17.12.040
8403 15.16.040 9234 17.12.050
Article ix 9235 17.12.060
9100 17.02.010 9236.1 17.14.010
9101 17.02.020 9236.2 17.14.020
9102 17.02.030 9236.3 17.14.030
9110 17.02.040 9236.4 17.14.040
9111 17.04.010 9236.5 17.14.050
9112 17.04.020 9236.6 17.14.060
9113 17.04.030 9240 17.16.010
9114 17.04.040 9241 17.16.020
9115 17.04.050 9242 17.16.030
9116 17.04.060 9243 17.16.040
9117 17.04.070 9245 17.18.010
9118 17.04.080 9246 17.18.020
9119-9120 Repealed by 127 9247 17.18.030
9122 17.04.090 9248 17.18.040
9123 17.04.100 9249.1 17.20.010
9200 17.06.010 9249.2 17.20.020
9201 17.06.020 9249.3 17.20.030
9202 17.06.030 9249.4 17.20.040
9203 17.06.040 9249.5 17.20.050
9204 Reserved 9250 17.22.010
9205 17.06.050 9251 17.22.020
9210 17.08.010 9252 17.22.030
9211 17.08.020 9253 17.22.040
9212 17.08.030 9254 17.22.050
9213 17.08.040 9260 17.24.010
9214 17.08.050 9261 17.24.020
9215 17.42.010 9262 17.24.030
9216 17.42.020 9263 17.24.040
-73-
93 Prior Prior
Code § Herein Code § Herein
9264 17.26.0.10 9321 17.46.0.20.
9265 17.26.0.20. 9322 17.46.0.30.
9266 17.26.0.30. 9323 17.46.0.40.
9267 17.26.0.40. 9324 17.46.0.50.
9269.1 17.28.0.10 9325 17.46.0.60.
9269.2 17.28.0.20. 9326 17.46.0.70.
9269.3 17.28.0.30. 9327 17.46.0.80.
9269.4 17.28.0.40. 9328 17.46.0.90.
9270. 17.30..0.10. 9330. 17.48.0. 10
9271 17.30..0.20. 9331 17.48.0.20.
9272 17.30..0.30. 9332 17.48.0.30.
9273 17.30..0.40. 9333 17.48.0.40.
9275 17.32.0.10. 9334 17.48.0.50.
9276 17.32.0.20. 9335 17.48.0.60.
9277 17.32.0.30. 9340. 17.50..0.10
9280. 17.34.0.10. 9341 17.50..0.20.
9281 17.34.0.20. 9342 17.50..0.30.
9282 17.34.0.30. 9350. 17.52.0. 10
9283 17.34.0.40. 9351 17.52.0.20.
9285 17.36.0.10. 9352 17.52.0.30.
9286 17.36.0.20. 9353 17.52.0.40.
9287 17.36.0.30. 9354 17.52.0.50.
9288 17.36.0.40. 9355 17.52.0.60.
9290. 17.38.0.10. 9356 17.52.0.70.
9291 17.38.0.20. 9357 17.52.0.80.
9292 17.38.0.30. 9380. 17.54.0.10
9293 17.38.0.40. 9381 17.54.0.20.
930.0. 17.40..0.10. 9382 17.54.0.30.
930.1 17.40..0.20. 9383 17.54.0.40.
930.2 17.40..0.30. 9384 . 17.54.0.50.
930.3 17.40..0.40. 9385 17.54.0.60.
930.4 17.40..0.50. 9410 17.56.0.10.
930.5 17.40..0.60. 9411 17.56.0.20.
930.6 17.40..0.70. 9412 17.56.0.30.
930.7 17.40..0.80. 9413 17.56.0.40.
930.8 17.40..0.90. 9414 17.56.0.50.
930.9 17.40..100. 9415 17.56.0.60.
9310. 17.44.0.10-17.44.0.70. 9416 17.56.0.70.
9320. 17.46.0.10. 9417 17.56.0.80.
-74-
94 Prior Prior
Code § Herein Code § Herein
9530 17.58.010 9490 17.68.010
9531 17.58.020 9491 17.68.020
9532 17.58.030 9492 17.68.030
9533 17.58.040 9493 17.68.040
9534 17.58.050 9494 17.68.050
9535 17.58.060 9495 17.68.060 ,
9536 17.58.070 9496 17.68.070
9537 17.58.080 9497 17.68.080
9400 17.60.010 9500 17.70.010
.9401 17.60.020 9501 17.70.020
9402 17.60.030 9502 17.70.030
9403 17.60.040 9503 17.70.040
9404 17.60.050 9504 Repealed
9405 17.60.060 9505 17.70.060
9420 17.62;010 9510 17.64.010
9421 17.62.020 9511 17.64.020
9422 17.62.030 9512 17.64.030
9423 17.62.040 9513 17.64.040
9440 17.66.010 9514 17.64.050
9441 17.66.020 9515 17.64.060
9442 17.66.030 9516 17.64.070
9443 17.66.040 9517 17.64.080
9444 17.66.050 9518 17.64.090
9445 17.66.060 9519 17.64.100
9446 Repealed 9520 17.64.110
9447 17.66.080 9521 17.64.120
9448 17.66.090 9522 17.64.130
9449 17.66.100 9523 17.64.140
9450 17.66.110 9524 17.64.150
9460 17.72.010 9550 17.74.010
9461 17.72.020 9551 17.74.020
9462 17.72.030 9552 17.74.030
9463 17.72.040 9553 17.74.040
9464 17.72.050 9554 17.74.050
9465 17.72.060 9560 17.04.110
9466 17.72.070 9561 17.04.120
9467 17.72.080 9562 17.04.130
9468 17.72.090 9563 17.04.140
9469 17.72.100 9564 17.04.150
-75-
95 Prior Prior
Code § Herein Code § Herein
9570 17.04.160 10314 16.12.150
9571 17.04.170 10315 16.12.160
9572 17.04.180 10316 16.12.170
9573 17.04.190 10400 16.20.010
9574 17.04.200 10401 16.20.020
9575 17.04.210 10402 16.20.030
9576 17.04.220 10403 16.20.040
9577 17.04.230 10404 16.20.050
9600-9605 17.02.050 10405 16.20.060
9606 17.02.060 10406 16.20.070
Aricle X 10407 16.20.080
10101 16.04.020 10408 16.20.090
10 1 02- 16.04.030 10409 16.20.100
10104 10410 16.20.110
10200 16.08.010 10500 16.16.010
10201 16.08.020 10501 16.16.020
10202 16.08.030 10502 16.16.030
10203 16.08.040 10503 16.16.040
10204 16.08.050 10504 16.16.050
10205 16.08.060 10505 16.16.060
10206 16.08.070 10506 16.16.070
10207 16.08.080 10507 16.16.080
10208 16.08.090 10508 Reserved
10209 16.08.100 10509 16.16.090
10210 16.08.110 10510 16.16.100
10300 16.12.010 10600 16.28.010
10301 16.12.020 10601 16.28~020
10302 16.12.030 10602 16.28.030
10303 16.12.040 10603 16.28.040
10304 16.12.050 10604 16.32.010
10305 16.12.060 10605 16.32.020
10306 16.12.070 10606 16.08.120
10307 16.12.080 10607 16.08.120
10308 16.12.090 10701 16.36.010
10309 16.12.100 10702 16.36.020
10310 16.12.110 10703 16.36.030
10311 16.12.120 10704 16.36.040
10312 16.12.130 10705 16.36.050
10313 16.12.140
-76-
96 Prior
Code § Herein
10706 16.36.060
10707 16.36.070
10800 16.24.010
10801 16.24.020
10802 16.24.030
10803 16.24.040
10804 16.24.050
-77-
97 The Ralph M. Brown Act
Calfornia Government Code
Sections 54950-54962
As Amendedjanuary 1,2000
54950. In enacting this chaptèr,the Legislature finds and declares that the public commissions, boards and councils and the other public agencies in this State exist to aid in the conduct of the people's business. It is the intent of the law that their actions be taken openly and that their deliberations be conducted openly. The people of ths State . do not yield their sovereignty to the agencies wl;ch serve them. The people, in delegating authority, do not give their public servants the right to decide what is good for the people to know and what is not good for them to know. The people insist on remaining informed so that they may retain control over the instruments they have created. 54950.5. This chapter shal be known as the Ralph M. Brown Act. 54951. As used in ths chapter, "local agency" means a county city, whether general law or charered, city and county town, school distrct, municipal corporation, distrct, political subdivision, or any board, commission or agency thereof, or other local public agency. 54952. As used in this chapter, "legislative body" means:
(a) The governing body of a local agency or any other local body created by state or federal statute.
(b) A commission, committee, board, or other body of a local agency, whether permanent or temporary, decisionmaking or advisory, created by charter, ordinance, resolutIon, or formal action of a legislative body. However, advisory committees, composed solely of the members of the legislative body which are less than a quorum of the legislative body are not legislative bodies, except that standing committees of a legislative body, irrespective of their composition, which have a continuing subject matter jurisdiction, or a meeting schedule fixed by charter, ordinance, resolution; or formal action of a legislative body are legislative bodies for purposes of this chapter. (c) (1) Aboard, commission, committee, or other multimember body that governs a private corporation or entity that either:
(A) Is created by the elected legislative body in order to exercise authority that may lawflly be delegated by the elected governing body to a private corporation or entity. (B) Receives funds from a local agency and the membership of whose governing body includes a member of the legislative body of the local agency appointed to that governing body as a full voting member by the legislative body of the local agency. (2) Notwithstanding subparagraph (B) of paragraph (1), no board, commission, committee, or other multimember body that governs a private corporation or entity that receives funds from a local agency and, as of February 9,1996, has a member of the legislative body of the local agency as a full voting member of the governing body of that private corporation or entity shal be relieved from the public meeting requirements of this chapter by virtue of a change in status of the full voting member to a nonvoting member.
(d) The lessee of any hospital the whole or part of which is firstleased pursuant to. subdivision (p) of Section 32121 of the Health and Safety Code after Jannary 1,1994, where the lessee exercises !lny material authority of a legislative body of a local agency delegated to it by that legislative body whether the lessee is organized and operated by the local agency or by a delegated authority.
-78-
~
25 Intent
TIle
"Io(al agen(y": publi( agendes
"legislative body": governing body
- body (reated by formal adion
private (orporation: exenises
delegated authority
private (orporation: re(eives publi(
funds/ appointed legislative body
member on its governing board
status (hange from voting member
to nonvoting member: publi( meeting
requirements
lessee of a hospital
ATTACHMENT 4
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newly-elected members
"meeting" defined
majority cannot use direct communication,
personal intermediaries or
technological devices
exceptions:

1. individual contacts
2~ conferences

3. community meetings

4. another body of the local àgency

5. social or ceremonial events

6. standing committee meeting
"action taken"
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26 Calornia Government Code
54952.1. Any person elected to serve as a member of a legislative body who has not yet assumed the duties of office shall conform his or her conduct to the requirements of this chapter and shall be treated for purposes of enforcement of this chapter as if he or she has already assumed office.
54952.2. (a) As used in thi~ chapter, "meeting" includes any congregation of a majority of the members of a legislative body at the same time and place to hear, discuss, or deliberate upon any item that is within the subject matter jurisdiction of the legislative body or the local agency to which it pertains. (b) Except as authorized pursuant to Section 54953, any use of direct communication, personal intermediaries, or technological devices that is employed by a majority of the members of the legislative body to develop a collective concurrence as to action to be taken on an item by the members of the legislative body is prohibited. (c) Nothing in this section shall impose the requirements of this chapter upon any of the following:
(1) Individual contacts or conversations between a member of a legislative body and any other person.
(2) The attendance of a majority of the members of a legislative body at a conference or similar gathering open to the public that involves a discussion of issues of general interest to the public or to public agencies of the tye represented by the legislative body, provided that a majority of the members do not discuss among themselves, othe than as part of the scheduled program, business of a specified nature that is within the subject matter jurisdiction of the local agency. Nothing in this paragraph is intended to alow members of the public free admission to a conference or similar gathering at which the organizers have required other participants orregistrants to pay fees or charges as a condition of attendance.
(3) The attendance of a majority of the members of a legislative body at an open and publicized meèting organized to address a topic oflocal community concern by a person or organization other than the local agency, provided that a majority of the members do not discuss among themselves, other than as part of the scheduled program, business of a specific nature that is within the subject matter jurisdiction of the legislative body of the local agency.
(4) The attendance of a majority of the members of a legislative body at an open and noticed meeting of another body of the local agency, or at an open and noticed meeting of a legislative body of another local agency, provided that a majority of the members do not discuss among themselves, other than as part of the scheduled meeting, business of a specific nature that is within the subject matter jurisdiction of the legislative body of the local agency.
(5) The attendance of a majority of the members of a legislative body at a purely socia . or ceremonial occasion, provided that a majority of the members do not discuss amon themselves business of a specific natue that is within the subject matter jurisdictione the legislative body of the local agency.
(6) The attendance of a majority of the members of a legislative body at an open and . noticed meeting of a standing committee of that body, provided that the members of the legislative body who are not members of the standing committee attend only as observers. . 54952.6. As used in this chapter, "action taken" means a collective decision made by; majority of the members of a legislative body, a collective commitment or promise by majority of the members of a legislative body to make a positive or a negative decisioi ,or an actual vote by a majority of the members of a legislative body when sitting as a body or entity, upon a motion, proposal, resolution, order or ordinance. -79-
99 California Government Code
54952.7. A legislative body of a local agency may require that a copy of this chapter be given to each member of the legislative body and any person elected to serve as a member of the legislative body who has not assumed the duties of office. An elected legislative body of a local agency may require that a copy of this chapter be given to each member of each.legislative body all or a majority of whose members are appointed by or under the ai.thority of the electedlegislative body. 54953. (a) Al meetings of the legislative body of a local agency shall be open and public, and all persons shal be permitted to attend any meeting of the legislative body of a local agency, except as otherwise provided in this chapter. (b) (1) Notwthstanding any other provision oflaw, the legislative body of a local agency may use teleconferencing for the benefit of the public and the legislative body of a local agency in connection with any meeting or proceeding authorized by law.

The teleconferenced meeting or proceeding shal comply with all requirements of this chapter and all otherwise applicable provisions of law relating to a specific type of meeting or proceeding.
(2) Teleconferencing, as authorized by this section, may be used for al purposes in connection with any meeting within the subject matter jurisdiction of the legislative body. Al votes taken during a teleconferenced meeting shall be by rollcal. (3) If the legislative body of a local agericy elects to use teleconferencing, it shall post agendas .at al teleconferènce locations and conduct teleconference meetings in a manner that protects the statutory and constitutional rights of the pares or the public appearing before the legislative body of a local agency. Each teleconference location shal be identied in the. notice and agenda of the meeting or proceeding, and each teleconference location shal be accessible to the public. During the teleconference, at least a quorum of the members of the legislative body' shal participate from locations withn the boundaries of the territory over which the local agency exercises jurisdiction. The agenda shal provide an opportunity for members of the public to address the legislative body diectly pursuant to Section 54954.3 at each teleconference location. (4) For the purposes of this section, "teleconference" means a meeting of a legislative body, the members of which are in different locations, connected by electronic means, through either audio or video, or both. Nothing in this section shal prohibit a lôcal' agency from providing the public with additional teleconference locations. (c) No legislative body shall take action by secret ballot, whether preliminary or finaL 54953.1. The provisions of this chapter shall not be construed to prohibit the members of the legislative body of a local agency from giving testimony in private before a grand jury, either as individuals or as a body.
54953.3. A member of the public shall not be required, as a condition to attendance at a meeting of a legislative body of a local agency, to register his or her name, to provide óther information, to complete a questionnaire, or otherwise to fulfll any condition precedent to his or her attendance.

If an attendance list, register, questionnaire, or other similar document is posted at or near the entrance to the room where the meeting is to be held, or is circulated to the persons present during the meeting, it shall state clearly that the signing, registering, or completion of the document is voluntary, and that all persons may attend the meeting regardless of whether a person signs, registers, OJ; completes the document. 54953.5. (a) Any person attending an open and public meeting of a legislative body of a local agency shall have the right to record the proceedings with an audio or video tape recorder or a still or motion picture camera in the absence of a reasonable finding . by the legislative body of the local agency that the recording cannot continue without -80-
~-
27 (opies of the Brown Ad for members,
appointees
all meetings must be open and publi(
video tele(onferendng
publi( o((ess
no senet ballots
grand jury testimony
publi( (annot be required to
register to attend meeting
voluntary registration
publi( (an tape meetings
100
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re(ordings are publi( re(ord
broad(ast of open meetings
10(01 agendes,(an impose
strider ' requirements on themselves
regular meetings set
by ordinan(e or other rule
meetings must be
within 10(01 agen(y's territory
exteptions
28 Calfornia Government Code
noise, illumination, or obstruction of view that constitutes, or would constitute, a persistent disruption of the proceedings.
(b) Any tape or film record of an open and public meeting made for whatever purpose by or at the direction of the local agency shall be subject to inspection pursuant to the California Public Records Act (Chapter 3.5 (commencing with Section 6250) of Division 7 of Title 1), but, notwithstanding Section 34090, may be erased or destroyed 30 days after the taping or recording. Any inspection of a video or tape recording shall be provided without charge on a video or tape player made available by the local agency:
54953.6. No legislative body of a local agency shall prohibit or otherwise restrict the broadcast of its open and public meetings in the absence of a reasonable finding that the broadcast cannot be accomplished without noise, ilumination, or obstruction of " view that would constitute a persistent disruption of the proceedings. 54953.7. Notwithstanding any other provision oflaw, legislative bodies oflocal agencies may impose requirements upon themselves which alow greater access to th~ir meetings than prescribed by the minimal standards set forth in this chapter. In addition thereto, an elected legislative body of a local agency may impose such requirements-n those appointed legislative bodies of the local agency of which all or a majority of the members are appointed by or under the authority of the elected legislative body.
54954. (a) Each legislative body of a local agency, except for advisory committees or standing committees, shal provide, by ordinance, resolution, bylaws, or by whatever other rule is required for the conduct of business by that body, the time and place for holding regular meetings. Meetings of advisory committees or standing committees, for which an agenda is posted at least 72 hours in advance of the meeting pursuant to subdivision (a) of Section 54954.2, shal be considered for purposes of this chapter as regular meetings of the legislative body.
(b) Regular and special meetings of the legislative body shall be held within the boundaries of the territory over which the local agency exercises jurisdiction, except to do any of the following:
(1) Comply with state or federal law or court order, or attend a judicial or administrative proceeding to which the local agency is a party. (2) Inspect real or personal property which cannot be conveniently brought within the boundaries of the territory over which the local agency exercises jurisdiction provided that the topic of the meeting is limited to items directly related to the real or personal propert.
(3) Participate in meetings or discussions of multiagency significance that are outside the boundaries of a local agency'sjurisdiction. However, any meeting or discussion held pursuant to this subdivision shall take place within 'the jurisdiction of one of the participating local agencies and be noticed by al, participating agencies as provided for in this chapter.
(4) Meet in the closest meeting facility if the local agency has no meeting facility within the boundaries of the territory over which the local agency exercises jurisdic- , tion, or at the principal office of the local agency if that office is located outside the territory over which the agency exercises jurisdiction. (5) Meet outside their immediate jurisdiction with elected or appointed officials of the United States or the State of California when a local meeting would be impractical, solely to discuss a legislative or regulatory issue affecting the local agency and over which the federal or state offcials have jurisdiction.
-81-
101
Calfornia Government Code
(6) Meet outside their immediate jurisdiction if the meeting takes place in or nearby a facility owned by the agency, provided that the topic of the meeting is limited to items directly related to the facility.
(7) Visit the offce of the local agency's legal counsel for a closed session on pending litigation held pursuant toSection54956.9, when to do so would reduce lega fees or costs. (c) Meetings of the gove~ning board of a schod district shall be held within the district except under the circumstances enumerated in subdivision (b), or to do any of the following:
(1) Attend a conference on nonadversarial collective bargaining techniques, (2) Intervew members of the public residing in another district with reference to the trustees' potential employment of the superintendent of that district. (3) Intervew a potential employee from another district. (d) Meetings of a joint powers authority shal occur within the territory of at least one of its member agencies, or as provided in subdivision (b). However, a joint powers authority which has members througnout the state may meet at any facilty in the state which complies with the requirements of Section 54961. (e) If, by reason of fire, flood, earthquake, or other emergency, it shal be unsafe to meet in the place designated, the meetings shall be held for the duration of the emergency at the place designated by the presiding offcer of the legislative body or his or her designee in anotice to the local media that have requested notice pursuant to Section 54956, by the most rapid means of communication avaiable at the time. 54954.1. Any person may request that a copy of the agenda, or a copy of al the documents constituting the agenda packet, of any meeting of a legislative body be mailed to that person. Upon receipt of the written request, the legislative body or its designee shal cause the requested materials to be mailed at the time the agenda is posted pursuant to Section 54954.2 and 54956 or upon distribution to al, or a majority of al, of the members of a legislative body, whiche~er occurs first. Any request for mailed copies of agendas or agenda packets shall be vald for the calendar year in which it is fùed, and must be renewed following January 1 öfeach year. The legislative body may est:iblish a fee for mailing the agenda or agenda packet, which fee shal not exceed the cost of providing the service. Failure of the requesting person to receive the agenda or agenda packet pursuant to this section shal not constitute grounds for invaldation of the actions of the legislative body taken at the meeting for which the agenda or agenda packet was not received.
54954.2. (a) At leàst 72 hours before a regular meeting, the legislative body of the local agency, or its designee, shal post an agenda containing a brief general description of each item of business to be transacted or discussed at the meeting, including items to be discussed in closed session. A brief general description of an item gener~ aly need not exceed 20 words. The agenda shal specifY the time and location of the regular meeting and shal be posted in a location that is freely accessible to members of the public,
No action or discussion shal be undertaken on any item not appearing on the posted agenda, except that members of a legislative body or its staff may briefly respond to statements made or questions posed by persons exercising their public testimony rights under Section 54954.3. In addition, on their own initiative or in response to questions posed by the public, a member of a legislative body or its staff may ask a question for clarification, make a brief announcement, or make a brief report on his or her own activities. Furthermore, a member of a legislative body, or the body itself, subject to rules or procedures of the legislative body, may provide a reference to staff or other -82-
-oX'.. ~.'V'.
29 . mailed notice
regular meeting agendas:
n-hour notice and.posting
action on non-agenda items
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item continued from meeting
less than S days earlier
. public opportunity to address
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reasonable constraints on public testimony
public criticism of policies,
procedures, programs or services
reimbursement of costs
30 California Government Code
resources for factual information, request staff to report back to the body at a subsequent meeting concerning any matter, or take action to direct staff to place a matter of business on a future agenda. .
(b) Notwithstanding subdivision(a), the legislative body may take action on items of business not appearing on the posted agenda under any of the conditions stated below.

Prior to discussing any item pursuant to this subdivision, the legislative body shall publicly identifY the item.
(1) Upon a determination by a majority vote of the legislative body that an emergency situation exists, as defined in Section 549565-
(2) Upon a determination bya two-thirds vote of the members of the legislative body present at the meeting, or, if less than two-thirds of the members are present, a unanimous vote of tho,se members present, that there is a need to take immediate action and that the need for action came to the attention of the local agency subsequent to the agenda being posted as specified in subdivision (a). (3) The item was posted pursuant to subdivision (a) for a prior meeting of the legislative body occurring not more than five calendar days prior to the date action is taken on the item, and at the prior meeting the item was continued to the meeting at which action is being taken.
54954.3. (a) Every agenda for regular meetings shal provide an opportunity for members of the public to directly address the legislative body on any item of interest
to the public, before or during the legislative body's consideration of the item, that is within the subject matter jurisdiction of the legislative body, provided that no action shall be taken on any item not appearing on the agenda unless the action is otherwise authorized by subdivision (b) of Section 54954.2. However, the agenda need not provide an opportunity for members of the public to address the legislative body on any item that has aleady been considered by a committee, composed exclusively of members of the legislative body, ~t a public meeting wherein all interested members 0 the pliblic were afforded the opportunity to address the comrlttee on the item, befon
. or, during the committee'sconsideratio~ of the item, unless the item has been substan tialy changed since the committee heard the item, as determined by the legislative body. Every notice for a special meeting shal provide an opportunity for members of the public to directly address the legislative body concerning any item that has been described in the notice for the meeting before or during consideration of that item. (b) The legislative body of a local agency may adopt reasonable regulations to ensure that the intent of subdivision (a) is carried out, including, but not limited to, regula- . tions limiting the total amount of time alocated for public testimony.on particular issues and for each individual speaker.
(c) The legislative body of a local agency shal not
prohibit public criticism of the
policies, procedures, programs, or services of the agency, or of the acts or omissions 0:
the legislative body. Nothing in this subdivision shall confer any privilege or protection for expression beyond that otherwise provided by law. 54954.4. (a) The Legislature hereby finds and declares that Section 12 of Cha~ter 641 of the Statutes of 1986, authorizing reimbursement to local agencies and school
districts for costs mandated by the state pursuant to that act, shal be interpreted strictly. The intent of the Legislature is to provide reimbursement for only those cos' which are clearly and unequivocally incurred as the direct and necessary result of compliance with Chapter 641 of the Statutes of 1986.
(b) In this regard, the Legislature directs all
state employees and offcials involved in
reviewing or authorizing claims for reimbursement, or otherwise participating in the -83-
,._~.;:_.21~____ __~__ _
103
Calornia Government Code
~
reimbursement process, to rigorously review each claim and authorize only those claims, or parts thereof, which represent costs which are clearly and unequivocaly , incurred as the direct and necessary result of compliance with Chapter 641 of the Statutes of 1986 and for which complete documentation exists. For purposes of Section 54954.2, costs eligible for reimbursement shal only include the actual cost to post a single agenda for any òne,meeting.
(c) The Legislature hereby finds and declares that complete, faithful, and uninterruptedcòmpliance with the Ralph M. Brown Act (Chapter 9 (commencing with Section 54950) of Part 1 of Division 2 of Title 5 of the Government Code) is a matter of overriding public importance. Unless specificaly stated, no future'Budget Act, or related budget enactments, shal in any manner, be interpreted to suspend, eliinate, or otherwse modifY, the lega obligation and duty of local agencies to fully comply with Chapter 641 of the Statutes of 1986 in a complete, faithf, and uninterrupted manner. 54954.5. For purposes of describing closed session items pursuant to Section 54954.2, the agenda may describe closed sessions as provided below; No legislative body or elected official shal be in violation of Section 54954.2 or 54956 if the closed session items were described in substantial compliance with this section. Substantial compliance is satisfied by including the information provided below; irrespective of its format. (a) With respect to a closed session held pursuant to Section 54956.7:

LICENSEIPERMIT DETERMINATION
,Applicant(s): (SpecifY number of applicants)
(b) With respect to every item of business to be discussed in closed session pursuant to Section 54956.8:

CONFERENCE WITH REAL PROPERTY NEGOTIATORS
Property: (SpecifY street address, or if no street address, the parcel number or other unique reference, of the real property under negotiation) Agency negotiator: (SpecifY names of negotiators attending the closed session) (If circumstances necessitate the absence of a specified negotiator, an agent or designee may participate in place of the absent negotiator so long as the name of the a.gent or designee is announced at an open session held pI-or to the closed session.) Negotiating parties: (SpecifY name of party (not agent)) Under negotiation: (SpecifY whether instruction tci negotiator will concern price, terms of payment, or both)
(c) With respect to every item of business to be discussed in closed session pursuant to Section 54956. 9:
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CONFERENCE WITH LEGAL COUNSEL-EXSTING LITIGATION
(Subdivision (a) of Section 54956.9)
Name of case: (SpecifY by reference to claimant's name, names of parties, case or claim numbers)
-orCase name unspecified: (SpecifY whether disclosure would jeopardize service of process or existing settlement negotiations)

CONFERENCE WITH LEGAL COUNSEL-ANTICIPATED LITIGATION
Significant exposure to litigation pursuant to subdivision (b) of Section 54956.9:
(SpecifY number of potential cases)
(In addition to the information noticed above, the agency may be required to provide -84-
31 "safe harbors" for dosed session agendas
license and permit determinations
real estate negotiations
existing litigation
anticipated litigation
.: .___..~. _;",Q_.:;~~~~~.:~~~~~""",~,:~¡r,.~",.,.._...,~",..",.. ,",",' '-. 104
liability claims
. threats to public services
public employees
labor negotiation conference
multijurisdictional drug
law enforcement agency.
32 Calornia Government Code
additional information on the agenda or in an oral statement prior to the closed session pursuant to subparagraphs (B) to (E), inclusive, of paragraph (3) of subdivision (b) of Section 54956.9.)
Initiation of litigation pursuant to subdivision (c) of Section 54956.9: (Specify number of potential cases)
(d) With respect to every item of business to be discussed in closed session pursuant to Section 54956.95:

LIABILITY CLAIMS
Claimant: (Specify name unless unspecified pursuant to Section 54961) Agency claimt:d against: (Specify name)
(e) With respect to every item of business to be discussed in closed session pursuant to Section 54957:

THREAT TO PUBLIC SERVICES OR FACILITIES
Consultation with: (Specify name oflaw enforcement agency and title of officer)

PUBLIC EMPLOYEE APPOINTMENT
Title: (Specify description of position to be filed)

PUBLIC EMPLOYMENT
Title: (Specify description of position to be filled)

PUBLIC EMPLOYEE PERFORMANCE EVALUATION
Title: (Specify position title of employee being reviewed)

PUBLIC EMPLOYEE DISCIPLINE/DISMISSAL/RELEASE
(No additional information is required in connection with a closed sessio~ to consider discipline, dismissal, or release of a public employee. Discipline includes potential r~duction of compensation.)
(f) With respect to every item of business to be discussed in closed session pursuant to Section 54957.6:

CONFERENCE WITH LABOR NEGOTIATORS
Agency designated representatives: (Specify names of designated representatives attending the closed session) (If circumstances necessitate the absence of a specified designated representative, an agent or designee may participate in place of the absent representative so long as the name of the agent or designee is announced at an open session held prior to the closed session.)
Employee organization: (SpecifY name of organization representing employee or employees in question)
-orUnrepresented employee: (Specify position title of unrepresented employee who is the subject of the negotiations)
(g) With respect to closed sessions caled pursuant to Section 54957.8:

CASE REVIEW /PLANNING
(No additional information is required in connection with a closed session to consider case review or planning.)
(h) With resp~ct to every item of business to be discussed in closed session pursuant to Sections 1461,32106, and 32155 of the Health and Safety Code or Sections 37606 and 37624.3 of the Government Code:
-85-
..... ___...__.._.._-_,...""~~__,____~. _-J___ _
105
Calornia Government Code

REPORT INVOLVING TRADE SECRET
. Discussion wil conq:rn: (Specif whether discussion will concern proposed new service, program, or facility)
Estimated date of public disclosure: (SpecifY month and year)

HEARINGS
Subject matter: (SpecifY whether testimony/deliberation will concern staff privileges, report of medical audit committee, or report of quality assurance committee) (i) With respect to every item of business to be discussed in closed session pursuant to Section 54956.86:

CHARGE OR COMPLAINT INVOLVING INFORMATION PROTECTED

BY FEDERAL LAW
(No additional information is required in connection with a closed session to discuss a charge or complaint pursuant to Section 54956.86.)
.54954.6.- (a) (1) Before adopting any new or increased general tax or any new or increased assessment, the legislative body of a local agency shall conduct atleast one public meeting at which local officials shal allow public testimony regarding the proposed new or increased general tax or new or increasèd assessment in addition to the noticed public hearing at which the legislative body proposes to enact or increase the general tax or assessment.

For purposes of this section, the term "new or increased assessment" does not include any of the following:
(A) A fee that does not exceed the reasonable cost of providing the services, facilities, or regulatory activity for which the fee is charged.
(B)A servce charge, rate, or charge, unless a special district's principal act requires the - service charge, rate, or charge to conform to the requirements of this section. (C) An ongoing annual assessment ifit is imposed at the same or lower amount as any previous year.

D) An assessment that does not exceed an assessment formula or range of assessments previously specified in the notice given to the public pursuant to subparagraph (G) of paragraph (2) of subdivision (c) and that was previously adopted by the agency or approved by the voters in the area where the assessment is imposed. (E) Standby or immediate availabilty charges.
(2) The legislative body shal provide at least 45 days' public notice of the public hearing at which the legislative body proposes to enact or increase the general tax or assessment. The legislative body shall provide notice for the public meeting at the same time and in the same document as the notice for the public hearing, but the meeting shal occur prior to the hearing.
(b) (1) The joint notice of both the public meeting and the public hearing required by subdivision (a) with respect to a proposal for a new or increased general tax shal be accomplished by placing a display advertisement of at least one-eighth page in a newspaper of general circulation for three weeks pursuant to SeCtion 6063 and by a first-class mailng to those interested parties who have filed a written request with thè local agency for mailed notice of public meetings or hearings on new or increased general taxes. The public meeting pursuant to subdivision (a) shall take place no earlier than 10 days after the first publication of the joint notiee pursuant to this subdivision. The public hearing shal take place no earlier- than seven days after the public meeting pursuant to this subdivision. Notwithstanding paragraph (2) of -86-
Tli~~.;::,:!1 -
33 hospital exceptions
hearings .
federal law
tax or assessment hearings
new or increased taxes
:::: ~~~~""~~~~-0~:¡~%o;-::;~.r.;"1:t:.~~-:;:t:~~~"?::::~...'i,7'~-o"~:'''C:.'-::_~'ff.'?-:':.'.:_:.":_J:
106
new or intreased assessments
''i
;:~ L
34 . California Government Code
subdivision (a), the joint notice need not include notice of the public meeting after the meeting has taken place. The public hearing pursuant. to subdivision (a) shall take place no earlier than 45 days after the first publication of the joint notice pursuant to this subdivision. Any written request for mailed notices shal be effective for one year from the date on which it is filed unless a renewal request is fùed. Renewal requests for mailed notices shall be filed on or before April 1 of each year. The legislative body may establish a reasonable annual charge for sending notices based on the estimated cost of providing the service.
(2) The notice required by paragraph (1) of this subdivision shall include, but not be limited to, the following:
(A) The amount or rate of the tax. If the tax is proposed to be increased from any previous year, the joint notice shall separately stat~ both the existing tax rate and the proposed tax rate increase.
(B) The activity to be taxed.
(C) The estimated amouU:t of revenue to be raised by the tax annualy.
(D) The method and frequency for collecting the tax.
(E) The dates, times, and locations of the public meeting and hearing described in subdivision (a).
(F) The phone number and address of an individual, office, or organization that interested persons may contact to receive additional information about the tax. (c) (1) The joint notice of both the public meeting and the public hearing required by subdivision (a) with respect to a proposal for a new or increased assessment on real property shall be accomplished through a mailng, postage prepaid, in the United States mail and shall be deemed given when so deposited. The public meeting pursuant to subdivision (a) shal take place no earlier than 10 days after the joint mailing pursuant to this subdivision. The public hearing shall take place no earlier than seven days after t~e public meeting pursuant to this subdivision. The envelope or the cover of the mailing shall include the name of the local agency and the return address of the sender. This mailed notice shal be in at least 10-point type and shall be given to all property owners proposed to be subject to the new or increased assessment by a mailing by name to those persons whose names and addresses appear on the last equalized county assessment roll or the State Board of Equalzation assessment roll, as the case may be.
(2) The joint notice required by paragraph (1) of this subdivision shall include, but not. be limited to, the following:
(A) The estimated amount of the assessment per parceL If the assessment is proposed to be increased from any previous year, the joint notièe shall separately state both the amount of the existing assessment and the proposed assessment increase. (B) A general description of the purpose or improvements that the assessment will fund. (Cl The address to which property owners may mail a protest against the assessment. (D) The phone number and address of an individual,office, or organization that interested persons may contact to receive additional information about the assessment. (E) A statement that a majority protest will cause the assessment to be abandoned if the assessment act used to levy the assessment so provides. Notice shall also state the percentage of protests required to trigger an election, if applicable. (F) The dates, times, and locations of the public meeting and hearing described in subdivision (a).
-87"-
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Calfornia Government Code
(G) A proposed assessment formula or range as descrbed in subparagraph (D) of paragraph (1) of subdivision (a) if applicable and that is noticed pursuant to ths section. (3) Notwithstanding paragraph (1), in the case of an assessment that is proposed exclusively for operation and maintenance expenses imposed throughout the entire local agency, or exclusively for operation and maintenance assessments proposed to be levied on 50,000 parcels or more, notice may be provided pursuant to this subdivision or pursuant to paragraph (1) of subdivision (b) and shall include the estimated amount of the. assessmen-t of various tyes, amounts, or uses of property and the information required by subparagraphs (B) to (G), inclusive, of paragraph (2) of subdivision (c).
(4) Notwithstanding paragraph (1), in the case of an assessment proposed to be levied pursuant to Part 2 (commencing with Section 22500) of Division 2 of the Streets and Highways Code by a regional park district, regional park and open-space district, or regional open-space district formed pursuant to Article 3 (commencing with Section 5500) òfChapter 3 of Division 5 of, or pursuant to Division 26 (commencing with Section 35100) of, the Public Resources Code, notice may be provided pursuant to paragraph (1) of subdivision (b). - (d) The notice requirements imposed by this section shal be construed as additional to, and not to supersede, existing provisions of law, and shal be applied concurrently with the existing provisions so as to not delay or prolong the governmental decisionmaking process.
(e) This section shall not apply to any new or increased general tax or any new or increased assessment that requires an election of either of the following:
(1) The property owners subject to the assessment.
(2) The voters within the local agency imposing the tax or assessment. (f) Nothing in this section shall prohibit a local agency from holding a consolidated meeting or hearing at which the legislative body discusses multiple tax or assessment proposals.
(g) The local agency may recover the reasonable costs of public meetings, public hearings, and notice required by this section from the proceeds of the tax or assessment. The costs recovered for these purposes, whether recovered pursuant to this subdivision or any other provision oflaw, shal not exceed the reasonable costs of the public meetings, public hearings, and notice.
(h) Any new or increased assessment that is subject tothe notice and hearing provisions of Article XIIIC orXIIID of the California Constitution is not subject to the notice and hearing requirements of this section.
54955. The legislative body of a local agency may adjourn any regular, adjourned regular, special or adjourned special meeting to a time and place specified in the order of adjournment. Less than a quorum may sò adjourn from time to time. If al members are absent from any regular or adjourned regular meeting the clerk or secretary of the legislative body may declare the meet~ng adjourned to a stated time and place and he shall cause a written notice of the adjournment to be given in the same manner as provided in Section 54956 for special meetings, unless such notice is waived as provided for special meetings. A copy of the order or notiçe of adjournment shall be conspicuously posted on or near the door of the place where the regular, adjourned regular, special or adjourned special meeting was held within 24 hours after the time of the adjournment. When a regular or adjourned regular meeting is adjourned as provided in this section, the resulting adjourned regular meeting is a regular meeting for all purposes. When an order of adjournment of any -88-
~
35 adjourned meetings
108
i';"
!) 1
i:::
m¡ !
continued hearings
special meetings
emergency meetings
36 I Calornia Government Code
meeting fails to state the hour at which the adjourned meeting is to be held, it shal be held at the hour specified for regular meetings by ordinance, resolution, bylaw, or other rule.
54955.1. Any hearing being held, or noticed or ordered to be held, by a legislative body of a local agency at any meeting may by order or notice of continuance be continued or recontinued to any subsequent meeting of the legislative body in the same manner and to the same extent set forth in Section 54955 for the adjournment of meetings; provided, that if the hearing is continued to a time less than 24 hours after the time specified in the order or notice of hearing, a copy of the òrder or notice of continuance of hearing shall be posted immediately following the meeting at which the order or declaration of continuance was adopted or made. 54956. A special meeting may be called at any time by the presiding officer of the legislative body of a local agency, or by a majority of the members of the legislative body, by delivering written notice to each member of the legislative body and to each local newspaper of general circulation and radio or television station requesting notice in writing. The notice shall be delivered personaly or by any other means and shal be received at least 24 hours before the time of the meeting as specified in the notice.

The call and notice shal specifY the time and place of the special meeting and the business to be transacted or discussed. No other business shal be considered at these meetings by the legislative body. The written notice may be dispensed with as to any member who at or prior to the time the meeting convenes files with the clerk or secretary of the legislative body a written waiver of notice. The waiver may be given by telegram. The written notice may also be dispensed with as to any member who is actualy present at the meeting at the time it convenes.

The call and notice shal be posted at least 24 hours prior to the special meeting in a location that is freely accessible to members of the public. 54956.5. In the case of an emergency situation involving matters upon which prompt action is necessary due to the disruption or threatened disruption of public facilities, a legislative body may hold an emergency meeting without complying with either the 24-hour notice requirement or the 24-hour posting requirement of Section 54956. or
both of the notice and posting requirements.
:For purposes of this section, "emergency situation" means any of the following:
(a) Work stoppage or other activity which severely impairs public health, safety, or
both, as determined by a majority of the members of the legislative body. (b) Crippling disaster which severely impairs public health, safety, or both, as determined by a majority of the members of the legislative body.

However, each local newspaper of general circulation and radio or television station which has requested notice of special meetings pursuant to Section 54956 shal be notified by the presidiiig officer of the legislative body, or designee thereof, one hour prior to the emergency meeting by telephone and aU telephònenumbers provided in the most recent request of such newspaper or station for notification of special meetings shal be exhausted. In the event that telephone servces aré not functioning, the notice requirements of this section shal be deemed waived, and the legislative body, or designee of the legislative body, shal notifY those newspapers, radio stations, or television stations of the fact of the holding of the emergency meeting, the purpose of the meeting, and any action taken at the meeting as soon after the meeting as possible.

Notwthstanding Section 54957, the legislative body shall not meet in closed session during a meeting called pursuant to this section.
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Calornia Government Code
All special meeting requirements, as prescribed in Section 54956 shal be applicable to a meeting caled pursuant to this section, with the exception of the 24-hour notice requirement.

The minutes of a meeting caled pursuant to ths section, a list of persons who the presiding offcer of the legislatie body, or designee of the legislative body, notied or attempted to notify a copy oftherollcal vote, and any actions taken at the meeting shal be posted for a mirumum ofl0 days in a public place as soon after the meeting as possible. 54956.6. No fees may be charged by the legislative body of a local agency for carrying out any provision of this chapter, except as specificaly authorized by this chapter. 54956.7. Whenever a legislative body of a local agency determines that it is necessary to discuss and determine whether an applicant for a license or license renewal, who has a criminal record, is sufficiently rehabilitated to obtain the license, the legislative body may hold a closed session with the applicant and the applicant's attorney, if any, for the purpose of holding the discussion and makng the determination. If the legislative body determines, as a result of the closed session, that the issuance or renewal of the license should be denied, the applicant shal be offered the opportunity to withdraw the application. If the applicant withdraws the application, no record . shall be kept of the discussions or decisions made at the closed session and al matters relating to the closed session shall be confidential. If the applicant does not withdraw the application, the legislative body shal take action at the public meeting during which the closed session is held or at its next public meeting denying the application for the license but all matters relating to the closed session are confidential and shall not be disclosed without the consent of the applicant, except in an action by an applicant who has been denied a license challenging the denial of the license. 54956.8. Notwithstanding any other provision of this chapter, a legislative body of a local agency may hold a closed session with its negotiator prior to the purchase, sale, exchange, or lease of real property by or for the local agency to grant authority to its negotiator regarding the price and terms of payment for the purchase, sale, exchange, or lease.

However, prior to the closed session, the legislative body of the local agency shal hold an open and public session in which it identifies its negotiators, the real property or real properties which the negotiations may concern, and the person or persons with whom its negotiators may negotiate.

For purposes of this section; negotiators may be members of the legislative body of the local agency.

For purposes of this section, "lease" includes renewal or renegotiation of a lease.

Nothing in this section shall preclude a local agency from holding a closed session for discussions regarding eminent domain proceedings pursuant to Section54956.9. 54956.86. Notwithstanding any other provision of this chapter, a legislative body of a . .' local agency which provides services pursuant to Section 14087.3 of theWelfare and Institutions Code may hold a closed session to hear a charge or complaint from a , member enrolled in its health plan if the member does not wish to have his or her . name, medical status, or other information that is protected by federal law publicly disclosed~ Prior to holding a closed session pursuant to this section, the legislative ,. body shall inform the member, in writing, of his or her right to have the charge or ., complaint heard in an open session rather than a closed session. .;;" 54956.87. (a) Notwithstanding any other provision of this chapter, the records 9f a ,; health plan that is licensed pursuant to the Knox-Keene Health Care Service Plan Act -90-
:.'?-~'
:~~~~~: ~ii'
'~A_.~
37 no fees except t~ose specifically authorized
dosed sessions: license. applicants
with criminal records
dosed sessions: conference with
negotiator over real property
dosed sessions: health plan
charge or complaint
disdosure exemption for health plan records
110
dosed session: pending litigation
litigation formally initiated
38 Calfornia Governmeiit Code
of 1975 (Chapter 2.2 (commencing with Section 1340) (¡fDivision 2 of the Health and Safety Code) and that is governed by a county board of supervisors, whether paper records, records maintained in the management information system, or records in any other form, that relate to provider rate or payment determinations, allocation or distribution methodologies for provider payments, formulae or calculations for these payments, and contract negotiations with providers of health care for alternative rates are exempt from disclosure fora period of three years after the contract is fully executed. The transmission of the records, or the information contained therein in an alternative form, to the board of supervisors shal not constitute a waiver of exemption from disclosure, and the records and information once transmitted to the board of supervisors shal be subject to tlis same exemption.
(b) Notwithstanding any other provision oflaw, the governing board of a health plan that is licensed pursuant to the Knox- Keene Health Care Service Plan Act of 1975 (Chapter 2.2 (commencing with Section 1340) of Division 2 of the Health and Safety Code) and that is governed by a county board of supervsors may order that a meeting held solely for the purpose of discussion or taking action on health plan trade secrets, as defined in subdivision (c) of Section 32106 of the Health and Safety Code, shall be held in closed session. The requirements of making a public. report of action taken in closed session, and the vote or abstention of every member present, may be limited to a brief general description without the information constituting the trade secret. (c) The governing board may delete the portion or portions containing trade secrets from any documents that were finaly approved in the closed session held pursuant to subdivision (b) that are provided to persons who have made the timely or standing request.
(d) Nothing in this section shal be construed as preventing the governing board from meeting in closed session as otherwise provided by law. (e) The provisions of this section shal not prevent access to any records by the Joint Legislative Audit Committee in the exercise of its powers pursuant to Article 1 (commencing with Section 10500) of Chapter 4 of Part 2 of Division 2 ofTicle 2.

The provisions of this section also shal not prevent access to any records by the Department of Corporations in the exercise of its powers pursuant to Article 1 (commencing with Section 1340) of Chapter 2.2 of Division 2 of the Health and Safety Code.
54956.9. Nothing in this chapter shall be construed to prevent a legislative body of a local agency, based on advice of its legal counsel, from holding a closed session to confer with, or receive advice from, its legal counsel regarding pending litigation when discussion in open session concerning those matters would prejudice the position of the local agency in the litigation.

For purposes of this chapter, al expressions of the lawyer-client priviege other than those provided in this section are hereby abrogated. This section is the exclusive expression of the lawyer-client privilege for purposes of conducting closed-session meetings pursuant to this chapter.

For purposes of this section, "litigation" includes any adjudicatory proceeding, including eminent dòmairi,before a court, administrative body exercising its adjudicatory authority, hearing officer, or arbitrator.

For purposes of this section, litigation shal be considered pending when any of the following circumstances exist:
(a) Litigation, to which the local agency is a party, has been initiated formally. -91-
111
Calornia Government Code
(b) (1) A point has been reached where, in the opinion of the legislative body of the local agency on the advice of its legal counsel, based on existing facts and circum~ stances, there is a significant exposure to litigation against the local agency. (2) Based on existing facts and circumstances, the legislative body of the local agency is meeting only to decidë whether a closed session)sauthorized pursuant to 'paragraph (1) of this subdivision.
(3) For purposes of paragraphs (1) and (2), "existing facts and drcumstances" shal consist only of one of the following:
(A) Facts and circumstances that might result in litigation against the local agency but which the local agency believes are not yet known to a potential plaintiff or plaintiffs, which facts and circumstances need not be disclosed.
(B) Facts and circumstances, including, but not limited to, an accident, disaster, incident, or transactional occurrence that might result in litigation against the agency and that are known to a potential plaintiff or plaintiffs, which facts or circumstances shal be publicly stated on the agenda or announced.
(C) The receipt of a claim pursuant to the Tort Claims Act or some other written communication from a potential plaintiff threatening litigation, which claim or communication shall be available for public inspection pursuant to Section 54957.5. (D) A statement made by a person in an open and public meeting threatening litigation on a specific matter within the responsibility of the legislative body. (E) A statement threatening litigation made by a person outside an open and public meeting on a specific matter within the responsibility of the legislative body so long as the offcial or employee of the local agency receiving knowledge of the threat makes a contemporaneous or other record of the statement,prior to the meeting, which record shall be avaiable for public inspection pursuant to Section 54957.5. The records so created need not identify the aleged victim of unlawf or tortious sexual conduct or anyone making the threat on their behal or identify a public employee who is the aleged perpetrator of any unlawfl or tortious conduct upon which a threat of litigation is based, unless the identity of the person has been publicly disclosed. (F) Nothing in this section shall require disclosure of written communications that are privieged and not subject to disclosure pursuant to the Calfornia Public Records Act (Chapter 3.5 (commencing with Section 6250) of Division 7 of Title 1). (c) Based on existing facts and circumstances, the legislative body of the local agency has decided to initiate or is deciding whether to initiate litigation.

Prior to holding a closed session pursuant to this section, the legislative body of the local agency shal state on the agenda or publicly announce the subdivision of this section that authorizes the closed session. If the.session is closed pursuant to subdivision (a), the body shal state the title of or otherwse specifically identify the litigation to be discussed, unless the body states that to do so would jeopardize the agency's ability to effectuate service of process upon one or more unserved parties, or that to do so would jeopardize its ability to conclude existing settlement negotiations to its advantage.

A local agency shall be considered to be a "party" or to have a "significant exposure to litigation" if an officer or employee of the local agency is a party or has significant exposure to litigation concerning prior or prospective activities or aleged activities during the course and scope of that office or employment, including litigation in . which it is an issue whether an activity is outside the course arid scope of the office or employment.
-92-
d:t~.
39 significant exposure to litigation
meeti~gt.ø,dedde if dosed
meeting is authorized
initiating litigation
112
¡:.
¡ . ~
. ¡.L'
1'::
l-:
,.
:;i
closed session: claims
against joint powers agencies
closed sessions: threats to
public buildings or to public access
personnel matters
public reports on
closed session actions, votes
real estate negotiations
40 Calfornia Government Code
54956.95. (a) Nothing in this chapter shall be constred to prevent a joint powers agency formed pursuant to Article 1 (commencing with Section 6500) of Chapter 5 of Division 7 ofTicle 1, for purposes of insurance pooling, or a local agency member of the joint powers agency, from holding a closed session to discuss a claim for the payment of tort liability losses, públic liability losses, or workers' compensation liability incurred by the joint powers agency or a local agency member of the joint powers agency.
(b) Nothing in this chapter shal be construed to prevent the Local Agency SelfInsurance Authority formed pursuant to Chapter 5.5 (commencing with Section 6599.01) of Division 7 ofTicle 1, or a local agency member of the authority, from holding a closed session to discuss a claim for the payment of tort liability losses, public liability losses, or workers' compensation liabilty incurred by the authority or a local agency member of the authority.
(c) Nothing in this section shall be construed to afect Section 54956.9 with respect to any other local agency.
54957. Nothing contained in this chapter shal be construed to prevent the legislative body of a local agency from holding closed sessions with the Attorney General, district attorney, sheriff, or chief of polite, or their respective deputies, on matters posing a threat to the security of public buildings or a threat to the public's right of access to public services or public facilities, or from holding closed sessions during a regular or special meeting to consider the appointment, employment, evaluation of performance, discipline, or dismissal of a public employee or to hear complaints or charges brought against the employee by another person or employee unless the employee requests a public session.

As a condition to holding a closed session on specic complaints or charges brought against an employee by another person or employee, the employee shal be given written notice of his or henight to have the complaints or charges heard in an open session rather than a closed session, which notice shall be delivered to the employee personally or by mail at least 24 hours before the time for holding the session. If notice is not given, any disciplinary or other action taken by the legislative body against the employee based on the specific complaints or charges in the closed session shal be null and void.

The legislative body also may exclude from the public or closed meeting, during the examination of a witness, any or al other witnesses in the matter being investigated by the legislative body.

For the purposes of this section, the term. "employee" shal include an officer or an independent contractor who functions as an offcer or an employee but shal not include any elected official, member of a legislative body or other independent contractors. Nothing in this section shal limit local offcials' ability to hold closed session meetings putsw;i.nt to Sections 1461,32106, and 32155 of the Health and Safety Code or Sections 37606 and 37624.3 of the Government Code. Closed sessions held pursuant to this section shall not include discussion or action on proposed compensation except for a reduction of compensation that results from the imposition of discipline.
54957.1. (a) The legislative body of any local agency shal publicly report any action taken in closed session and the vote or abstention of every member presen't thereon, af follows:
(1) Approval of an agreement concluding real estate negotiations pursuant to Section 54956.8 shall be reported after the agreement is final, as specified below:
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Calfornia Government Code
(A) If its own approval renders the agreement final, the body shall report that approval and the substance of the agreement in open session at the _public meeting during which the closed session is held.
(B) If final appr~val rests with the other party to the negotiations, the local agency shal disclose the fact ófthat approval and the su,bstance of the agreement upon inquiry by any person, as soon"'as the other party or its agent has informed the local agency of its approval.
(2) Approval given to its legal counsel to defend, Or seek or refrain from seeking appellate review or relief, or to ellter as an amicus curiae in any form oflitigation as the result of a consultation under Section 54956.9 shal be reported in open session at the public meeting during which the closed session is held. The report shal identify if known, the adverse party or parties and the substance of the litigation. In the case of approval given to initiate or intervene in an action, the announcement need not identifY the action, the defendants, or other particulars, but shall specifY that the direction to initiate or intervene in an action has been given and that the action, the defendants,-and the other particulars shall, once formally commenced, be disclosed to any person upon inquiry, unless to do so would jeopardize the. agency's ability to effectuate sêrvice of process on one or more unserved parties, or that to do so would jeopardize its ability to cohclude existing settlement negotiations to its advantage. (3) Approval given to its legal counsel of a settlement of pending litigation, as defineq in Section 54956.9, at any stage prior to or during a judicial or quasi-judicial proceeding shal be reported after the settlement is final, as specified below; (A) If the legislative body accepts a settlement offer signed by the opposing party the body shal report its acceptance and identif the substance of the agreement in open session at the public meeting during which the closed session is held. . (B) If final approval rests with some other party to the litigation or with the court, then as soon as the settlement becomes final, and upon inquiry by any person, the local agency shal disclose the fact of that approval, and identifY the substance of the agreement.
(4) Disposition reached as to claims discussed in closed session pursuant to Section 54956.95 shal be reported as soon as reached in a manner that identifies the name of the claimant, the name of the local agency claimed against, the substance of the claim, and any monetary amount approved for payment and agreed upon by the claimant. (5) Action taken to appoint, employ, dismiss, accept the resignation of, or otherwise affect the employment status of a public employee in closed session pursuant to Section 54957 shall be reported at the public meeting during which the closed session is held. Any report required by this paragraph shal identifY the title of the position.

Th~ general requirement of this paragraph notwithstanding, the report of a dismissal or of the nonrenewalof an employment contract shall be deferred unti the first public meeting following the exhaustion of administrative remedies, if any. ' (6) Appro~al of an agreement concluding labor negotiations with represented employees pursuant to Section 54957.6 shall be reported after the agreement is final and has been accepted or ratified by the other party The report shall identifthe item approved and the other party or parties to the negotiation. (b) Reports that are required to be made pursuant to this section may be made oraly or in writing. The legislative body shall provide to any person who has submitted a written request to the legislative body within 24 hours of the posting of the agenda, or to any person who has made a standing request for al documentation as part of a request for notice of meetings pursuant to Section 54954.1 or 54956, if the requester -94-
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41 pending litigation
joint powers authority daims
personnel adions
labor negotiations
(opies of dosed session do(uments
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closed session minute book
writings distributed to a majority
of a body are public records
closed session minute book
42 California Government Code
is present at the time the closed session ends, copies of any contracts, settlement . agreements, .or other documents that were finally approved or adopted in the closed session. If the action taken results in one or more substantive amendments to the related documents requiring retying, the documents need not be released until the retying is completed during normal business hours, provided that the presiding officer of the legislative body or his or her designee oraly summarizes the substance of the amendments for the benefit of the document requester Or any other person present and requesting the information.
(c) The documentatio.n referred to in paragraph (b) shal be available to any person on the next business day following the meeting in which the action referred to is taken or, in the case of substantial amendments, when any necessary retying is complete. (d) Nothing in this section shall be construed to require that the legislative body approve actions not otherwise subject to legislative body approval. (e) No a~tion for inur to a reputational, liberty, or other personal interest may be commenced by or on behal of any employee or former employee with respect to whom a disclosure is made by a legislative body in an effort to comply with tls section. 54957.2. (a) The legislative body of a local agency may, by ordinance or resolution, designate a clerk or other officer or employee of the local agency who shall then attend each closed session of the legislative body and keep and enter in a minute book a record of topics discussed and decisions made at the meeting. The minute book made pursuant to this section is not a public record subject to inspection pursuant to the California Public Records Act (Chapter 3.5 (commencing with Section 6250) of Division 7 of Title 1), and shal be kept confidential. The minute book shall be avaiable only to members of the legislative body or, if a violation of this chapter is aleged to have occurred at a closed session, to a court of general jurisdiction wherein the local agency lies. Such minute book may, but need not, consist of a recording of the closed session.
(b) An elected legislative body of a local agency may require that each legislative body al or a majority of whose members are appointed by or under the authority of the elected legislative body keep a minute book as prescribed under subdivision (a). 54957.5. (a) Notwithstanding Section 6255 or any other provisions oflaw, agendas of public meetings and any other writings, when distributed to all, or a majority of all, of the members of a legislative body of a local agency by any person in connection with a matter subject to discussion or consideration at a public meeting of the body, are disclosable public records under the California Public Records Act (Chapter 3.5 (commencing with Section 6250) of Division 7 of Title 1), and shall be made available upon request without delay. However, this section shall nOt include any writing exempt from public disclosure under Section 6253.5, 6254, 6254.7, or 6254.22. (b) Writings that are public records under subdivision (a) and that are distributed during a public meeting shall be made available for public inspection at the meeting if prepared by the local agency or a member of its legislative body, or after the meeting if prepared by some other person.
(c) Nothg in tls chapter shal be constred to prevent the legislative body of a local agency from chargig a fee or deposit for a copy of a public record pursuant to Section 6257. (d) Tls section shal not be construed to limit or delay the public's right to inspect or obtain a copy of any record required to be disclosed under the requiements of the Calornia Public Records Act (Chapter 3.5 (commencing with Section 6250) of Division 7 of Title 1). Nothing in this chapter shal be constred to require a legislative body of a local agency to place any paid advertisement or any other paid notice in any publication. -95-
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54957.6. (a) Notwithstanding any other provision oflaw, a legislative body of a local agency may hold closed sessions with the local agency's designated representatives regarding the salaries, salary schedules, or compensation paid in the form of fringe benefits of its represented and unrepresented employees, and, for represented employees, any other matter within the statutorily provided scope of representation.

However, prior to the closed session, the legislative body of the local agency shal hold an open and public session in which it identifies its designated representatives. . Closed sessions of a legislative body of a local agency, as permitted in this section, shal be for the purpose of reviewing its position and instructing the local agency's designated representatives.

Closed sessions, as permitted in this section, may take place prior to and during consultations and discussions with representatives of employee organizations and unrepresented employees.

Closed sessions with the local agericy's designated representative regarding the salaries, salàry schedules, or compensation paid in the form of fringe benefits may include discussion of an agency's available funds and funding priorities, but only insofar as these discussions relate to providing instructions to the local agency's designated representative.

Closed sessions held pursuant to this section shall not include final action on the proposed compensation of one or more unrepresented employees.

For. the purposes enumerated in this section, a legislative body of a local agency may also meet with a state conciliator who has intervened in the proceedings. (b) For the purposes of this section, the term "employee" shall include an officer or an independent contractor who functions as an officer or an employee, but shall not include any elected official, member of a legislative body, or other independent contractors.
54957.7. (a) Prior to holding any closed session, the legislative body of the local agency shal disclose, in an open meeting, the item or items to be discussed in the closed session. The disclosure may take the form of a reference to the item or items as they are listed by number or letter on the agenda. In the closed session, the legislative body may consider only those matters covered in its statement. Nothing in this section shall require or authorize a disclosure of information prohibited by state or federal law.
(b) Mter any closed session~ the legislative body shall reconvene into open session prior to adjournment and shal make any disclosures required by Section 54957.1 of action taken in the closed session.
(c) The announcements required to be made in open session pursuant to this section may be made at the location announced in the agenda for the closed session, as long as the public is alowed to be present at that location for the purpose of hearing the announcements.
54957.8. Nothing contained in this chapter shal be construed to prevent the legislative body of a multijurisdictional drug law enforcement agency, or an advisory body of a multijurisdictional drug law enforcement agency, from holding dosed sessions to discuss the case records of any ongoing criminal investigation of the multi jurisdictional drug law enforcement agency oro£ any party to the joint powers agreement, to hear testimony from persons involved in the investigation, and to discuss courses of action in particular cases.
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dosed sessions: meeting with
representatives on labor negotiations
advan(e announ(ement
of dosed session items
dosed session: multiiurisdidional
drug law enfonement agen(y
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civil actions to prevent violations
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"Multi jurisdictional drug law enforcement agency," for purposes of this section, means; a joint powers entity formed pursuant to Article 1 (commencing with Section 6500) of f Chapter 5 of Division 7 of Title i, which provides drug law enforcement services for the parties to the joint powers agreement.

The Legislature finds and declares that this section is within the public interest, in that its provisions are necessary to prevent the impairment of ongoing law enfon.èment investigations, to protect witnesses and informants, and to permit the discussion of effective courses of action in particular cases.
54957.9. In the event that any meeting is willully interrupted by a group:oi:'gwl.ps-of . persons so as to render the orderly conduct of such meeting unfeasible and orner _¿.' cannot be restored by the removal of individuals who are willfully interrupting thC'i, '.' meeting, the members of the legislative body conducting the meeting may order the' meeting room cleared and continue in session. Only matters appeaiÍub on the agnda may be considered in such a session. Representatives of the press or other news media, except those participating in the disturbance, shall be alowed to attend any session l:eld pursuant to this section. Nothing in this section shall prohibit the legislative body from establishinga procedure for readmitting an individual or individuals not responsible for willfully disturbing the orderly conduct of the. meeting. 54958. The provisions of this chapter shall apply to the legislative body of every local agency notwithstanding the conflicting provisions of any other state law. 54959. Each member of a legislative body who attends a meeting of that legislative body where action is taken in violation of any provision of tls chapter, and where the member intends to deprive the public of information to which the member knows or has reason to know the public is entitled under this chapter, is guilty of a misdemeanor. 54960. (a) The district attorney or any interested person may commence an action by mandamus, injunction or declaratory relieffor the purpose of stopping or preventing violations or threatened violations of this chapter by members of the legislative body of a local agency.or to determine the applicability of this chapter to actions or threatened future action of the legislative body, or to determine whether any rue or action by the legislative body to penalize or otherwse discourage the exression of one or more of its members is vald or invald under the laws of this state or of the United States, or to compel the legislative body to tape record its closed sessions as hereinafter provided. (b) The court in its discretion may, upon a judgment of a violation of Section 54956.7, 54956.8,54956.9,54956.95,54957, or 54957.6, order the legislative body to tape record its closed sessions and preserve the tape recordings for the period and under the terms of security and confdentiality the court deems appropriate. (c) (1) Each recording so kept shall be immediately labeled with the date of the closed . session recorded and the title of the clerk or other offcer who shall be custodian of the recording.
(2) The tapes shall be subject to' the following discovery procedures:
(A) In any case in which discovery or disclosure of the tape is sought by either the district attorney or the plaintiff in a civil action pursuant to Section 54959, 54960, or 54960.1 alleging that a violation of this chapter has occurred ina closed session which has been recorded pursuant to this section, the party seeking discovery or disclosure shal file a written notice of motion with the appropriate court with notice to the governmental agency which has custody and control of the tape recording. The notice shal be given pursuant to subdivision (b) of Section 1005 of the Code of Civil Procedure.
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California Government Code
(B) The notice shal include, in addition to the items required by Section 1010 of the Code of Civil Procedure, all of the following:
(i) Identifcation of the proceeding in which discovery or disclosure is sought, the party seeking discovery or disclosure, the date and time of the meeting recorded, and the governmental agency wq.ich has custody and ~ontrolof the recording. (ii) An affdavit which contains specific facts indicating that a violation of the act occurred in the closed session.
(3) If the court, following a review of the motion, finds that there is good cause to believe that a violation has occurred, the court may review, in camera, the recording of that portion of the closed session alleged to have violated the act. (4) If, following the in camera review, the court concludes that disclosure of a portion of the recording would be likely to materialy assist in the resolution of the litigation aleging violation of this chapter, the court shal, in its discretion, make a certified transcript of the portion of the recording a public exhibit in the proceeding. (5) Nothing in this section shall permit discovery of communications which are protected by the attorney-client privilege.
54960.1. (a) The district attorney or any interested person may commence an action by mandamus or injunction for the purpose of obtaining a judicial determination that an action taken by a legislative body of a local agency in violation of Section 54953, 54954.2,54954.5,54954.6, or 54956 is null and void under this section. Nothing in this chapter shal be construed to prevent a legislative body from curing or correcting an action chalenged pursuant to this section.
(b) Prior to any action being commenced pursuant to subdivision (a), the district attorney or interested person shal make a demand of the legislative body to cure or correct the action aleged to have been taken in violation of Section 54953, 54954.2, 54954.5, 54954.6, or 54956. The demand shall be in writing and clearly describe the chalenged action of the legislative body and nature of the aleged violation. (c) (1) The written demand shal be made within 90 days from the date the action was taken unless the action was taken in an open session but in violation of Section 54954.2, in which case the written demand shal be made within 30 days ftom the date the action was taken.
(2) Within 30 days of receipt of the demand, the legislative body shal cure or correct the chalenged action and inform the demanding party in writing of its actions to cure or correct or inform the demanding party in writing of its decision not to cure or correct the chalenged action.
. (3) If the legislative body takes no action within the 30-day period, the inaction shal be deemed a decision not to cure or correct the chalenged action,and the 15-d~y period to commence the action described in subdivision (a) shall commence to run the day after the 30-day period to cure or correct expires. (4) Within 15 days of receipt of the written notice of the legislative body's deci~ion to cure ot correct, Or not to cure or correct, or within 15 days of the expiration of the 30- day period to cure or correct, whichever is earlier, the demanding party shal be required to commence the action pursuant to subdivision (a) or thereafter be barred from commencing the action.
.......... (d) An action taken that is aleged to have been taken in violation òfSection 54953, . .... 54954.2,54954.5,54954.6, or 54956 shall not be determined to be null and void if any of the following conditions exist:
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action to invalidate
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court may àward attorney fees
meeting sites must be free of discrimination
and accessible to disabled
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no dosed meetings except
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46 Calfornia Government Code
(1) The action taken was in substantial compliance with Sections 54953, 54954.2, 54954.5,54954.6, and 54956.
(2) The action taken was in connection with the sale or issuance of notes, bonds, or other eviden,ces of indebtedness or any contraCt, instrument, or agreement thereto. (3) The action taken gave rise to a con,tractual obligation, including a contract let by competitive bid other than compensation for servces in the form of salar or fees for professional services, upon which a party has, in good faith and without notice of a chalenge to the validity of the action, detrimentally relied. (4) The action taken was in connection with the collection of any tax. (5) Any person, city, city and county, county, district, or any agency or subdivision of the state aleging noncompliance with subdivision (a) of Section 54954.2, Section 54956, or Section 54956.5, because of any defect, error, irregularity, or omission in the notice given pursuant to those provisions, had actual notice of the item of business at least 72 hours prior to the meeting at which the action was taken, if the meeting was noticed pursuant to Section 54954.2, or 24 hours prior to the meeting at which the action was taken if the meeting was noticed pursuant to Section 54956, or prior to the meeting at which the action was taken if the meeting is held pursuant to Section 54956.5 (e) During any action seeking a judicial determination pursuant to subdivision (a) if the court determines, pursuant to a showing by the legislative body that an action alleged to have been taken in violation of Section 54953, 54954.2, 54954.5, 54954.6, or 54956 has been cured or corrected by a subsequent action of the legislative body, the action filed pursuant to subdivision (a) shal be dismissed with prejudice. (f) The fact that a legislative body takes a subsequent action to cure or correct an action taken pursuant to this section shall not be construed or admissible as evidence of a violation of this chapter. ' 54960.5. A court may award court costs and reasonable attorney fees to the plaintiff in an action brought pursuant to Section 54960 or 54960.1 where it is found that a legislative body of the local agency has violated this chapter. The costs and fees shal be paid by the local agency and shall not become a personal liability of any public officer or employee of the local agency.

A court may award court costs and reasonable attorney fees to a defendant in any action brought pursuant to Section 54960 or 54960.1 where the defendant has prevailed in a final determination of such action and the court finds that the action was clearly frivolous and totaly lacking in merit.
54961. (a) No legislative body of a local agency shal conduct any meeting in any facility that prohibits the admittance of any person, or persons, on the basis of race, religious creed, color, national origin, ancestry, or sex, or which is inaccessible to disabled persons, or where members of the publicmày not be present without making a payment or purchase. This section shall apply to every local agency as defined in Section 54951.
(b) No notice, agenda, announcement, or report requir~d under this chapter need identity any victim or alleged victim of tortious sexual conduct or child abuse unless the identity of the person has been publicly disclosed. 54962. Except as expressly authorized by this chapter, or by Sections 1461,1462, 32106, and 32155 of the Health and Safety Code or Sections 37606 and 37624.3 of the Government Code as they apply to hospitals, or by any provision of the Education Code pertaining to school districts and community college districts, no closed session may be held by any legislative body of any local agency. -99-,
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Page 1 of 4 ends

Malibu City CouncilOctober 28, 2024

Malibu City Council
October 28, 2024