Menifee City Council
April 20, 2022

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EXHIBIT 2

COVENANTS, CONDITIONS, AND RESTRICTIONS

AFFECTING REAL PROPERTY
[See following document]
Item Title: 11.2
Economic Development Operating Incentive Agreement with Savage Chef and Co.

Item Page Number: 12
Menifee Mayor and City Council April 20, 2022

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PLEASE RECORD AND WHEN RECORDED
RETURN TO:

CITY OF MENIFEE
29844 Haun Road
Menifee, CA 92586
Attn: City Clerk
[Space above this line for Recorder’s use only]
[Recorded for the benefit of the City of Menifee
and exempt from recording fees pursuant to
Government Code Section 27383]

COVENANTS, CONDITIONS, AND RESTRICTIONS

AFFECTING INTERESTS IN REAL PROPERTY
This COVENANTS, CONDITIONS, AND RESTRICTIONS AFFECTING
INTERESTS IN REAL PROPERTY (the “Covenant”) is entered into as of this 20th day of April, 2022, by and between the CITY OF MENIFEE, a California municipal corporation (“City”), and SAVAGE CHEF AND CO., a California corporation (“Developer”) (individually a “Party” and collectively the “Parties”).

R E C I T A L S
A. Developer has a leasehold interest in that certain real property consisting of approximately four thousand square feet (4,000 sf), at 30145 Antelope Road, Suite 106, in the City of Menifee, County of Riverside, State of California, which is more particularly described in the legal description attached hereto as Exhibit “A” and incorporated herein by this reference (the “Site”).

B. On or about April 20, 2022, City and Developer entered into that certain unrecorded agreement captioned “Agreement to Enter into Covenant to Operate and to Share Sales Tax Revenue” (the “Agreement”) authorizing the recordation of this Covenant against the Site upon the timely satisfaction of the “Covenant Conditions” identified therein.

C. Subject to the terms and conditions hereof and of the “Entitlements” (as that term is defined below), Developer has agreed to construct certain tenant improvements and the Site and open and operate thereon a Savage Chef Bar and Grill restaurant (the “Restaurant”).

D. In consideration for Developer’s encumbrance of the Site by this Covenant and Developer’s performance of its obligations hereunder, City has agreed to make certain payments to Developer, the amount of which are measured by the “Sales Taxes Item Title: 11.2
Economic Development Operating Incentive Agreement with Savage Chef and Co.

Item Page Number: 13
Menifee Mayor and City Council April 20, 2022

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From the Site” (as that term is defined below) generated by the operation of the Restaurant on the Site. City and Developer have agreed that the portion of Sales Taxes From the Site required to be paid by City to Developer hereunder during each “Fiscal Year” of the “Operating Period” (as those terms are defined below) provided for herein is a fair exchange for the consideration to be furnished by Developer to City in that Fiscal Year.

C O V E N A N T S
Based upon the foregoing Recitals, which are incorporated herein by this reference and are acknowledged by the Parties as true and correct, and for other good and valuable consideration, the receipt and sufficiency of which is acknowledged by both Parties, City and Developer hereby agree as follows:

1. DEFINED TERMS.

The following terms when used in this Covenant shall have the meanings set forth below:

The term “Agreement” shall have the meaning ascribed in Recital B of this Covenant.

The term “Commencement Date” shall mean the first day of the first month following the date City issues to Developer a Certificate of Occupancy for the Restaurant.

The term “Covenant Payments” shall mean the amounts to be paid by City to Developer with respect to each Fiscal Year of the Operating Period.

The term “Covenant Payments Cap Amount” shall have the meaning ascribed in Section 4.1.1(b) of this Covenant.

The term “Default” shall have the meaning ascribed in Section 5.1 of this Covenant.

The term “Entitlements” shall mean those discretionary City land use permits and approvals (including all conditions of approval therein) required to authorize development and operation of the Restaurant on the Site, as the same may be amended from time to time.

The term “Fiscal Year” shall mean City’s fiscal year, which commences on July 1 and ends on the next succeeding June 30.

The term “Holder” shall have the meaning ascribed in Section 5.1(b) of this Covenant.

Item Title: 11.2
Economic Development Operating Incentive Agreement with Savage Chef and Co.

Item Page Number: 14
Menifee Mayor and City Council April 20, 2022

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The term “Maintenance Standards” shall have the meaning ascribed in Section

3.3 of this Covenant.

The term “Quality of Life Measure DD Tax” shall mean the sales and use taxes received by City as a result of Ballot Measure DD, which was approved in the November 2016 election and authorizes City to impose a sales tax of one percent (1%) to fund general City services.

The term “Municipal Code” shall mean the Menifee Municipal Code.

The term “Operating Period” refers to the period between the Commencement Date and the Termination Date.

The term “Restaurant” shall have the meaning described in Recital C.

The term “Site” shall have the meaning ascribed in Recital A of this Covenant.

The term “Sales Taxes From the Site” means the amount equal to the sales and use taxes that are generated from sales occurring on the Site on which sales or use taxes are imposed pursuant to applicable California law in each Fiscal Year during the Operating Period which are actually received by City from the State Department of Tax and Fee Administration, but excluding any Measure DD Tax. In connection therewith:
(i) Developer shall timely report, and shall cause its
tenants (if any) to report, all sales and use taxes from the Site to the State Department of Tax and Fee Administration in accordance with the laws, rules, and regulations applicable to such reporting.
(ii) Sales Taxes from the Site shall be deemed to have
been paid by the State Department of Tax and Fee Administration to City if and to the extent the State Department of Tax and Fee Administration elects to offset the payment of any such Sales Taxes From the Site against any other obligation of City. (iii) Developer acknowledges that the State Department of Tax and Fee Administration makes payments to City based on both actual and anticipated sales and use tax revenues and that the State Department of Tax and Fee Administration makes periodic reconciliations. The determination of Sales Taxes From the Site for any annual, quarterly, or other period shall be subject to the timing and reconciliation process related to the processing by the State Department of Tax and Fee Administration of payments of such Sales Taxes From the Site to City. Any adjustments resulting from any interim or estimated determination of Sales Taxes From the Site for any annual, quarterly, or other period shall be reconciled by the Parties as soon as practicable without inclusion of, or any obligation to pay, interest.
(iv) Sales Taxes From the Site shall be determined based on actual amounts received by City based only on City’s share of the State sales and use tax applicable to the Site (which, as of the Effective Date, is 1% of the taxable amount).

Sales Taxes From the Site shall not include (a) amounts paid to City by the State Item Title: 11.2
Economic Development Operating Incentive Agreement with Savage Chef and Co.

Item Page Number: 15
Menifee Mayor and City Council April 20, 2022

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Department of Tax and Fee Administration derived from any sales tax overrides or special tax amounts received by City, such as Quality of Life Measure DD Tax, or (b) any administrative fees or charges imposed by the State Department of Tax and Fee Administration that reduce the actual amounts of sales and use taxes received by City. (v) Developer shall, and shall cause its tenants (if any) to, keep full and accurate books of account, records, and other pertinent data showing all gross income earned upon the Site that is reportable for California sales and use tax purposes, including all documents required to be maintained by the State of California for sales and use tax purposes.
(vi) Developer shall furnish, and shall cause its tenants (if any) to furnish, to City true and correct photocopies of its quarterly California sales and use tax returns at the time each is filed with the State of California, together with a copy of all checks or wire transfers or other forms of transfer of funds sent for such payment of sales and use taxes.

The term “Termination Date” shall mean the date that is the earliest of (i) the date that is four (4) years following the Commencement Date, (ii) the date that the Covenant Payments Cap Amount is paid in full; or (iii) the date on which this Covenant is terminated pursuant to Sections 5.2 or 5.3 of this Covenant, as applicable.

2. CONDITION TO DEVELOPER’S RIGHT TO RECEIVE COVENANT
PAYMENTS.

2.1 Outside Dates. Notwithstanding any other provision set forth in this Covenant, and subject to extension for events of force majeure as provided in Section 6.6 of this Covenant, (i) if the Commencement Date does not occur before the date that is twelve (12) months after the date of this Covenant, or (ii) if a building permit is not issued for the Restaurant within thirty (30) days after the Effective Date, either Developer or City may terminate this Covenant by delivery of written notice of termination to the other Party and, in such event, neither Party shall have any further rights against or obligations to the other Party arising out of this Covenant.

2.2 Opening Date. As a condition precedent to Developer’s right to receive the Covenant Payments, Developer shall be required to develop the Restaurant in accordance with the development plan set forth in Exhibit “B”, which is attached hereto and incorporated herein by this reference, and commence operations and open the Restaurant to members of the public within thirty (30) days after the Commencement Date.

2.3 Operating Condition. If Developer, or any assignee permitted by this Covenant, ceases to operate a Restaurant on the Site other than by reason of any closure that is permitted by this Covenant, then this Agreement shall terminate as of the date such operation is discontinued (other than by reason of a closure that is permitted by this Covenant) and no further payments shall be due under Section 4.1 below by reference to Sales Taxes From the Site generated in any calendar quarters after such date.

Item Title: 11.2
Economic Development Operating Incentive Agreement with Savage Chef and Co.

Item Page Number: 16
Menifee Mayor and City Council April 20, 2022

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3. DEVELOPER’S OBLIGATIONS.

3.1 Continuous Operation. During the Operating Period, Developer covenants and agrees to continuously operate the Restaurant on the Site, serving, at a minimum, lunch and dinner, seven (7) days a week (subject to temporary interruptions for casualty losses, repairs, labor unrest, and the like, provided, however, that no such interruptions shall continue for more than five (5) days without City’s prior written consent, which consent may be withheld in City’s sole and absolute discretion during the entire Operating Period).

3.2 Use Restriction. During the entire Operating Period, the Site shall not be put to any use other than the operation of the Restaurant and uses ancillary thereto.

3.3 Maintenance and Repair of Site; Landscaping. During the entire Operating Period, Developer, at its sole cost and expense, shall keep and maintain the Site and the improvements thereon and all facilities appurtenant thereto in first class condition and repair, consistent with Developer's other restaurants in Temecula, such as Zoro’s Mediterranean, and free from accumulations of debris, weeds, graffiti, and waste materials, with landscaping in a healthy condition, and shall otherwise fully comply with the Site’s maintenance standards established in the Entitlements (collectively, the “Maintenance Standards”). During such period, Developer shall not abandon any portion of the Site or leave the Site unguarded or unprotected, and shall not otherwise act or fail to act in such a way as to unreasonably increase the risk of any damage to the Site or of any other impairment of City’s interest set forth in this Covenant. During the entire Operating Period, Developer, at its sole cost and expense shall maintain the landscaping on the Site in compliance with the approved landscape plans.

3.4 Failure to Maintain Site and Restaurant. In the event Developer does not maintain the Site or the Restaurant in the manner set forth herein and in accordance with the Maintenance Standards, City shall have the right, but not the obligation, to maintain such private and/or public improvements, or to contract for the correction of such deficiencies, in accordance with the provisions of this Section 3.4. City shall notify Developer in writing if the condition of said improvements do not meet with the Maintenance Standards and to specify the deficiencies and the actions required to be taken by Developer to cure the deficiencies. Subject to the following sentence, upon notification of any maintenance deficiency, Developer shall have thirty (30) days within which to correct, remedy or cure the deficiency. If the written notification states the problem is urgent relating to the public health and safety of City, then Developer shall have forty-eight (48) hours to correct, remedy, or cure the problem.

In the event Developer or any person or entity acting on behalf of Developer fails to correct, remedy, or cure after notification and after the period of correction has lapsed (or, for deficiencies that cannot reasonably be corrected, remedied, or cured within such period, if Developer or any person or entity acting on behalf of Developer has not commenced correcting, remedying or curing such maintenance deficiency within such Item Title: 11.2
Economic Development Operating Incentive Agreement with Savage Chef and Co.

Item Page Number: 17
Menifee Mayor and City Council April 20, 2022

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period and diligently pursued such correction, remedy or cure to completion), then City shall have the right to maintain such improvements. Developer agrees to pay City such charges and costs. Until so paid, City shall have a lien on the Site for the amount of such charges or costs, which lien shall be perfected by the recordation of a “Notice of Claim of Lien” against the Site. Upon recordation of a Notice of a Claim of Lien against the Site, such lien shall constitute a lien on the fee estate in and to the Site prior and superior to all other monetary liens except: (i) all taxes, bonds, assessments, and other levies which, by law, would be superior thereto; (ii) the lien or charge of any mortgage, deed of trust, or other security interest then of record made in good faith and for value, it being understood that the priority of any such lien for costs incurred to comply with this Covenant shall date from the date of the recordation of the Notice of Claim of Lien. Any lien in favor of City created or claimed hereunder is expressly made subject and subordinate to the lien of any mortgage or deed of trust made in good faith and for value, recorded as of the date of the recordation of the Notice of Claim of Lien describing such lien as aforesaid, and no such lien shall in any way defeat, invalidate, or impair the obligation or priority of any such mortgage or deed of trust, unless the mortgage or beneficiary thereunder expressly subordinates his interest, of record, to such lien. Upon foreclosure of any mortgage or deed of trust made in good faith and for value and recorded prior to the recordation of any unsatisfied Notice of Claim of Lien, the foreclosure-purchaser shall take title to the Site free of any lien imposed by City that has accrued up to the time of the foreclosure sale, and upon taking title to the Site, such foreclosure-purchaser shall only be obligated to pay costs associated with this Covenant accruing after the foreclosure-purchaser acquires title to the Site. Developer acknowledges and agrees City may also pursue any and all other remedies available in law or equity. Developer shall be liable for any and all attorneys’ fees, and other legal costs or fees incurred in collecting said maintenance costs.

3.5 Continued Operation of Restaurant. During the entire Operating Period, Developer shall operate the Dine- in area of the Restaurant. Developer shall also use its best efforts to review and hire Restaurant employees from Menifee or the local area, to the extent legally permissible.

3.6 Compliance with Laws. During the entire Operating Period, Developer shall construct and operate the Restaurant on the Site in conformity with all applicable federal, state (including without limitation the California Civil Code, the California Government Code, the California Health & Safety Code, the California Labor Code, the California Public Resources Code, and the California Revenue & Taxation Code), and local laws, ordinances, and regulations (including without limitation City standards relating to the placement of storage containers), provided that Developer does not waive its right to challenge the validity or applicability thereof to Developer or the Site. The operation of the Restaurant shall be in compliance with all of the requirements of any permits issued by City for the Restaurant, including, without limitation, all of the conditions of approval issued in connection therewith.

Nothing herein constitutes a representation or warranty by City that the construction of the Restaurant is not a “public work” or otherwise subject to California Health and Safety Code Sections 33423 through 33426, or Chapter 1 of Part 7 of the Item Title: 11.2
Economic Development Operating Incentive Agreement with Savage Chef and Co.

Item Page Number: 18
Menifee Mayor and City Council April 20, 2022

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California Labor Code (commencing with section 1720), and all applicable statutory and regulatory provisions related thereto, and Developer expressly waives any right of reimbursement for any “increased costs” under California Labor Code Section 1781 or otherwise with respect to the Restaurant or Developer’s development thereof. Developer shall indemnify, defend, and hold City and City’s representatives, volunteers, officers, officials, members, employees, and agents harmless, including, but not limited to, litigation costs, expert witness fees, and reasonable attorneys’ fees, from and against any and all claims pertaining to the payment of wages in connection with Developer’s development of the Restaurant on the Site or failure to comply with federal or state labor laws, regulations, or standards.

3.7 Non-Discrimination. In the development, opening, and operation of the Restaurant, Developer agrees not to violate applicable laws that prohibit discrimination against any person or class of persons by reason of gender, sexual orientation, marital status, race, color, creed, mental or physical disability, religion, age, ancestry, or national origin.

3.8 Indemnification of City. Developer shall defend, indemnify, assume all responsibility for, and hold City, and City’s representatives, volunteers, officers, employees and agents, harmless from any and all claims, demands, damages, defense costs or liability of any kind (including attorneys’ fees and costs), that arise from Developer’s operation of the Site or which may be caused by any acts or omissions of the Developer under this Covenant, whether such activities or performance thereof be by Developer or by anyone directly or indirectly employed or contracted with by Developer and whether such damage shall accrue or be discovered before or after termination of this Covenant including, but not limited to, Developer’s failure to pay, if required, prevailing wages on the construction and development of the Restaurant. Developer shall be solely responsible for determining and effectuating compliance with prevailing wage laws, and the City makes no representation as to the applicability or non-applicability of any of such laws to the development and construction of the Restaurant or any part thereof. Developer hereby expressly acknowledges and agrees that City has not previously affirmatively represented to Developer or its contractor(s), in writing or otherwise, in a call for bids or otherwise, that the development or construction of the Restaurant is not a “public work,” as defined in Section 1720 of the Labor Code.

4. OBLIGATIONS OF CITY.

4.1 Covenant Payments to Developer.

4.1.1 Amount of Covenant Payments; Cap. In consideration for Developer’s undertakings pursuant to this Covenant and the encumbrance of Developer’s interest in the Site pursuant to this Covenant, City shall make the following Covenant Payments to Developer after the end of each Fiscal Year (or part thereof) during the Operating Period:
(a) Subject to subparagraph (b) below, the Covenant Payments with respect to each Fiscal Year shall be in an amount equal to fifty percent (50%) of the Item Title: 11.2
Economic Development Operating Incentive Agreement with Savage Chef and Co.

Item Page Number: 19
Menifee Mayor and City Council April 20, 2022

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Sales Taxes From the Site for that Fiscal Year (excluding Quality of Life Measure DD sales and Use tax and property tax) except that in the Fiscal Year during which the Termination Date occurs, the Covenant Payments shall be prorated such that City shall only pay to Developer 50% of the Sales Taxes From the Site. (b) Notwithstanding any other provision set forth in this Covenant to the contrary, in no event shall the total amount of Covenant Payments made by City to Developer exceed the sum of Fifty Thousand Dollars ($50,000) (the “Covenant Payments Cap Amount”). In this regard, it is understood and agreed that the Covenant Payments are in consideration of Developer’s performance during each Fiscal Year of the Operating Period and are not repayments of a loan.
(c) Notwithstanding any other provision set forth in this Covenant to the contrary, even in the event the Covenant Payments Cap Amount has not been reached at the end of the Operating Period, City shall have no further obligation after that time to make additional Covenant Payments.

4.1.2 Source of Payments. The Covenant Payments shall be payable from any source of funds legally available to City, including City’s general fund. In this regard, it is understood and agreed that the Sales Taxes From the Site are being used merely as a measure of the amount of the Covenant Payments that are periodically owing by City to Developer, and that City is not pledging any portion of the actual Sales Taxes From the Site to Developer.

4.1.3 Payment Procedure. Not later than one hundred twenty (120) days after the end of each Fiscal Year during the Operating Period, City shall pay the Covenant Payment for said Fiscal Year, or portion thereof, to Developer. Each such Covenant Payment shall be accompanied by a statement identifying (i) the amount of Sales Taxes From the Site upon which the Covenant Payment was calculated, and (ii) a cumulative total comparing how the Covenant Payment in question, together with all prior Covenant Payments, relate to the Covenant Payments Cap Amount..

4.1.4 Books and Records. Upon the written request of either Party, the other Party shall make available for inspection (at City Hall in the event of a review of City records and at Developer’s place of business in Menifee in the event of a review of Developer’s records) such of its books and records as the requesting Party may reasonably determine must be reviewed in order determine whether the correct amount of Covenant Payments have been made or are being made hereunder. Notwithstanding the foregoing, City shall not be required to produce any books or records that it is prohibited from producing by law and Developer shall not be required to produce information that violates the statutorily prescribed privacy rights of individual customers.

4.1.5 No Acceleration; Prepayment Permitted. It is acknowledged by the Parties that any payments by City provided for in this Covenant are in consideration for the performance by Developer during the time period(s) for which payments are due.

Therefore, City’s failure to timely make any payments or City’s failure to perform any of its other obligations hereunder shall not cause the acceleration of any anticipated future Item Title: 11.2
Economic Development Operating Incentive Agreement with Savage Chef and Co.

Item Page Number: 20
Menifee Mayor and City Council April 20, 2022

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Covenant Payments by City to Developer. The City shall be permitted to prepay any of the Covenant Payments at any time without penalty.

4.2 Additional Condition Precedent to City’s Obligations. In addition to the provisions set forth in Section 2 of this Covenant, City’s obligation to make the Covenant Payments pursuant to Section 4.1 of this Covenant for any Fiscal Year during the Operating Period shall be contingent and conditional upon Developer’s performance of its obligations set forth in Section 3 of this Covenant during such Fiscal Year.

5. DEFAULTS AND REMEDIES.

5.1 Defaults.
(a) Subject to Force Majeure (Section 6.6 of this Covenant), the occurrence of any of the following shall constitute a “Default”:
(i) the failure by either Party to perform any obligation of such Party for the payment of money under this Covenant if such failure is not cured within fifteen (15) calendar days after the nonperforming Party’s receipt of written notice from the other Party that such obligation was not performed when due; or (ii) the failure by either Party to perform any of its
obligations (other than obligations described in clause (i) of this Section 5.1) set forth in this Covenant, if such failure is not cured within thirty (30) days after the nonperforming Party’s receipt of written notice from the other Party or, if such failure is of a nature that cannot reasonably be cured within thirty (30) days, the failure by such Party to commence such cure within thirty (30) days and thereafter diligently and continuously prosecutes such cure to completion; or
(iii) any representation or warranty by a Party set forth in this Covenant proves to have been incorrect in any material respect when made; or (iv) Developer fails to meet any Development Milestone, attached hereto as Exhibit “B”; or
(v) Developer closes the Restaurant; or
(vi) the Restaurant is materially damaged or destroyed by fire or other casualty during the Operating Period and Developer fails to commence restoration of the improvements within six (6) months or thereafter fails to diligently and continuously proceed to complete such restoration in accordance with this Covenant; or (vii) Developer makes any total or partial sale, transfer, conveyance, assignment, subdivision, or lease of the whole or any part of any of the Site, the Restaurant, the Agreement, and/or this Covenant without City’s prior written consent, which consent City may grant or withhold in its sole and absolute discretion, or if any voluntary or involuntary successor-in-interest of Developer acquires any rights or powers Item Title: 11.2
Economic Development Operating Incentive Agreement with Savage Chef and Co.

Item Page Number: 21
Menifee Mayor and City Council April 20, 2022

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under the Agreement and/or this Covenant without City’s prior written consent, which consent City may grant or withhold in its sole and absolute discretion; or (viii) the ownership and/or control of Developer changes without the prior written consent of City; or
(ix) Developer refinances any existing construction,
permanent, or other loans encumbering the Site without the City’s prior written consent, which consent City may grant or withhold in its sole and absolute discretion; or (x) Developer, or any constituent member of Developer,
(1) is the subject of an order for relief for a bankruptcy court, or is unable or admits its inability to pay its debts as they mature, or makes an assignment for the benefit of creditors; (2) applies for or consents to the appointment of any receiver, trustee, custodian, conservator, liquidator, rehabilitator or similar officer for it or any part of its property; or (3) institutes or consents to any bankruptcy, insolvency, reorganization, arrangement, readjustment of debt, dissolution, custodianship, conservatorship, liquidation, rehabilitation or similar proceeding relating to it or any part of its property, or any similar proceeding is instituted without the consent of Developer and continues undismissed or unstayed for ninety (90) days; or
(xi) any receiver, trustee, custodian, conservator,
liquidator, rehabilitator or similar officer is appointed without the application or consent of Developer, and the appointment continues undischarged or unstayed for ninety (90) days; or any judgment, writ, warrant of attachment or execution, or similar process is issued or levied against the Site and is not released, vacated, or fully bonded within ninety (90) days after its issue or levy; or
(xii) Developer is enjoined or otherwise prohibited by any governmental agency from occupying the Site at any time during the Operating Period and such injunction or prohibition continues unstayed for ninety (90) days or more for any reason.
(b) In the event Developer fails to perform any of its obligations under this Covenant and City sends a notice of such failure to Developer, concurrently therewith City shall send a copy of such notice to any mortgagee or deed of trust holder with respect to the Site (herein the “Holder”) (the name and address of which Holder shall be furnished by Developer or such Holder to City) and the Holder shall have the same period of time as is available to Developer to remedy such breach or failure under this Covenant. City shall accept any proper cure of a breach or failure tendered by the Holder.

5.2 City’s Remedies Upon Default by Developer. Upon the occurrence of any Default by Developer, and after Developer’s receipt of written notice of default and expiration of the time for Developer to cure such Default as provided in Section 5.1 of this Covenant, City may at its option:
(i)suspend the payment of Covenant Payments
otherwise due and payable to Developer hereunder for the period that Developer remains Item Title: 11.2
Economic Development Operating Incentive Agreement with Savage Chef and Co.

Item Page Number: 22
Menifee Mayor and City Council April 20, 2022

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in Default. If City has so suspended its payments in accordance with the terms of this clause (i), then upon Developer’s cure of such Default, City shall resume its payment obligations, but shall have no obligation to make payments for any Fiscal Year or portion thereof during which City’s obligation to make payments was so suspended; or (ii)if the Default continues uninterrupted for a period of six (6) months, City may terminate this Covenant, in which case City’s obligation to make payments to Developer for any period of time after the occurrence of the Default shall be finally terminated and discharged.

In no event, however, shall City have the right (i) to specifically enforce Developer’s covenants set forth in Section 3 of this Covenant, (ii) to seek damages other than by offset of future Covenant Payments otherwise due hereunder, (iii) to prevent Developer’s conversion of the Site to another lawful use (even if such use would be inconsistent with this Covenant), or (iv) to sue Developer or to recover from Developer any amount that is actually or allegedly attributable to loss of anticipated Sales Taxes From the Site or other revenues, whether because the amount of Sales Taxes From the Site is less than projected by Developer or City, or because Developer does not operate the Restaurant on the Site for the entire Operating Period, or otherwise.

5.3 Developer’s Remedies Upon Default by City. Upon the occurrence of any Default by City, and after City’s receipt of written notice of Default from Developer and expiration of the time for City to cure such Default as provided in Section 5.1 of this Covenant, Developer may terminate this Covenant by written notice to City and/or seek whatever legal or equitable remedies may be available to Developer, subject to the provisions of Section 4.1.5 and Section 5.5 of this Covenant.

5.4 Cumulative Remedies; No Waiver. Except as expressly provided herein, the non-defaulting Party’s rights and remedies hereunder are cumulative and in addition to all rights and remedies provided by law from time to time and the exercise by the non- defaulting Party of any right or remedy shall not prejudice such Party in the exercise of any other right or remedy. None of the provisions of this Covenant shall be considered waived by either Party except when such waiver is delivered in writing. No waiver of any Default shall be implied from any omission by City to take action on account of such Default if such Default persists or is repeated. No waiver of any Default shall affect any Default other than the Default expressly waived, and any such waiver shall be operative only for the time and to the extent stated. No waiver of any provision of this Covenant shall be construed as a waiver of any subsequent breach of the same provision. A Party’s consent to or approval of any act by the other Party requiring further consent or approval shall not be deemed to waive or render unnecessary the consenting Party’s consent to or approval of any subsequent act. A Party’s acceptance of the late performance of any obligation shall not constitute a waiver by such Party of the right to require prompt performance of all further obligations. A Party’s acceptance of any performance following the sending or filing of any notice of Default shall not constitute a waiver of that Party’s right to proceed with the exercise of its remedies for any unfulfilled obligations. A Party’s acceptance of any partial performance shall not constitute a waiver by that Party of any rights relating to the unfulfilled portion of the applicable obligation.

Item Title: 11.2
Economic Development Operating Incentive Agreement with Savage Chef and Co.

Item Page Number: 23
Menifee Mayor and City Council April 20, 2022

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5.5 Limitations on City’s Liability. Developer acknowledges and agrees that: (i) this Covenant shall not be deemed or construed as creating a partnership, joint venture, or similar association between Developer and City, the relationship between Developer and City pursuant to this Covenant is and shall remain solely that of contracting Parties, that the development and operation of the Restaurant is a private undertaking and is not a public work, and City neither undertakes nor assumes any responsibility pursuant to this Covenant to review, inspect, supervise, approve, or inform Developer of any matter in connection with the development or operation of the Restaurant on the Site other than as expressly provided for herein, including matters relating to architects, designers, suppliers, or the materials used by any of them; and Developer shall rely entirely on its own judgment with respect to such matters; (ii) by virtue of this Agreement and/or Covenant, City shall not be directly or indirectly liable or responsible for any loss or injury of any kind to any person or property resulting from any construction on, or occupancy or use of, the Site, whether arising from: (a) any defect in any building, grading, landscaping, or other onsite or offsite improvement; (b) any act or omission of Developer or any of Developer’s agents, employees, independent contractors, licensees, lessees, or invitees; or (c) any accident on the Site or any fire or other casualty or hazard thereon; and (iii) by accepting or approving anything required to be performed or given to City under this Covenant, including any certificate, survey, appraisal, or insurance policy, City shall not be deemed to have warranted or represented the sufficiency or legal effect of the same, and no such acceptance or approval shall constitute a warranty or representation by City to anyone.

6. GENERAL PROVISIONS.

6.1 Integration and Amendment. This Covenant and the Agreement constitute the entire agreement by and between the Parties pertaining to the subject matter hereof, and supersede all prior agreements and understandings of the Parties with respect thereto. This Covenant may not be modified, amended, supplemented, or otherwise changed except by a writing executed by both Parties.

6.2 Captions. Section headings used in this Covenant are for convenience of reference only and shall not affect the construction of any provisions of this Covenant.

6.3 Binding Effect; Successors and Assigns; Assignments. This Covenant shall run with the land and shall be binding upon and inure to the benefit of, the Parties and their respective successors and assigns, as limited by this Section 6.3. Except as such assignment relates to Holder, the Developer shall not assign, hypothecate, encumber or otherwise transfer, either voluntarily, involuntarily or by operation of law, its rights or obligations as set forth in this Covenant without first obtaining the City’s written consent, which may be given or denied or conditioned in the City’s sole and absolute discretion.

Developer may assign its right to receive the Covenant Payments to any Holder for security purposes or to any lessee or business owning and operating the Restaurant on the Site. In the event of an assignment for security purposes to a Holder, City agrees that this Covenant shall be subordinated to the lien of said Holder’s deed of trust or mortgage and City agrees to cooperate with Developer in executing an appropriate subordination agreement.

Item Title: 11.2
Economic Development Operating Incentive Agreement with Savage Chef and Co.

Item Page Number: 24
Menifee Mayor and City Council April 20, 2022

882/031858-0003
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In the event of any assignment that is consented to in writing by the City, the references in this Covenant to “Developer” shall be deemed to refer to the assignee.

6.4 Counterparts. This Covenant may be executed in two or more counterparts, each of which when so executed and delivered shall be deemed an original and all of which, when taken together, shall constitute one and the same instrument.

6.5 Governing Law. This Covenant shall be governed by and construed in accordance with the internal laws of the State of California without regard to conflict of law principles.

6.6 Force Majeure. Notwithstanding any other provision set forth in this Covenant to the contrary, in no event shall a Party be deemed to be in Default of its obligations set forth herein where delays or failures to perform are caused by circumstances without the fault and beyond the reasonable control of such Party, which circumstances shall include, without limitation, fire/casualty losses; strikes; litigation; unusually severe weather; inability to secure necessary labor, materials, or tools; delays of any contractor, subcontractor, or supplier; unjustified acts or failure to act by City or other governmental agency in the processing or approval of plans or permits or inspection or approval of the construction of the Restaurant; litigation by third Parties challenging the validity or enforceability of the Agreement or this Covenant or the Entitlements; and acts of God (collectively, “force majeure”). Adverse market conditions or Developer’s inability to obtain financing or approval to operate the Restaurant shall not constitute events of force majeure. In the event of an event of force majeure, the Party so delayed shall notify the other Party of the circumstances and cause of the delay within a reasonable time period after commencement of the delay, it shall keep the other Party informed at reasonable intervals upon request regarding the status of its efforts to overcome said delay, and it shall exercise commercially reasonable diligence to perform as soon as practicable thereafter.

6.7 Notices. Notices to be given by City or Developer hereunder may be delivered personally or may be delivered by certified mail or by reputable overnight delivery service providing a delivery conformation receipt, with mailed notices to be addressed to the appropriate address(es) hereinafter set forth or to such other address(es) that a Party may hereafter designate by written notice. If served by overnight delivery service or certified mail, service will be considered completed and binding on the Party served on the date set forth in the confirmation or certification receipt.

If notice is to City: City Manager
City of Menifee
29844 Haun Road
Menifee, California 92586
Item Title: 11.2
Economic Development Operating Incentive Agreement with Savage Chef and Co.

Item Page Number: 25
Menifee Mayor and City Council April 20, 2022

882/031858-0003
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with a copy to: City Attorney
City of Menifee
29844 Haun Road
Menifee, California 92586
Attention: Jeffrey T. Melching, City Attorney
If notice is to Developer: Savage Chef Bar and Grill
30145 Antelope Road, Suite 106
Menifee, CA 92584
Attention: Dylan Soro

6.8 Further Acts. Each Party agrees to take such further actions and to execute such other documents as may be reasonable and necessary in the performance of its obligations hereunder; reserving to City, however, its lawful discretionary and police power authority. Without limiting the generality of the foregoing, upon the expiration or termination of the Operating Period, City will execute and deliver such instruments as may be prepared by Developer at Developer’s expense to release the cloud upon title to the Site created by this Covenant; provided, however, that any such document shall be in a form reasonably acceptable to the City Attorney of City.

6.9 Third Party Beneficiaries. With the exception of the specific provisions set forth in this Covenant for the benefit of Holder, there are no intended third party beneficiaries under this Covenant and no such other third parties shall have any rights or obligations hereunder.

6.10 Attorney’s Fees. The prevailing party shall be entitled to recover its reasonable attorney’s fees and costs, including without limitation expert witness fees, in connection with any breach or default by the other party under this Agreement. [End – Signature page follows]
Item Title: 11.2
Economic Development Operating Incentive Agreement with Savage Chef and Co.

Item Page Number: 26
Menifee Mayor and City Council April 20, 2022

882/031858-0003
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IN WITNESS WHEREOF, the Parties have executed this Covenant to be effective as of the Effective Date.

CITY:

CITY OF MENIFEE, a California municipal
corporation
___________________________
Armando G. Villa, City Manager
ATTEST:
_______________________
Sarah Manwaring, City Clerk
APPROVED AS TO FORM:

RUTAN & TUCKER, LLP
____________________________
Jeffrey T. Melching, City Attorney
“Developer”
SAVAGE CHEF AND CO., a California
corporation
By: ______________________
Dylan Soro, Owner
Its: ______________________
Item Title: 11.2
Economic Development Operating Incentive Agreement with Savage Chef and Co.

Item Page Number: 27
Menifee Mayor and City Council April 20, 2022

882/031858-0003
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EXHIBIT “A”
Legal Description of Site
PARCEL I:

PARCELS 3, 4, 5, 6, 7, 8, 12, 13 AND LOTS A AND B OF PARCEL MAP 27426, IN THE

COUNTY OF RIVERSIDE, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 187, PAGE(S) 27 TO 33, INCLUSIVE, OF PARCEL MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY.

EXCEPT AN UNDIVIDED ONE-HALF INTEREST IN AND TO ALL OIL, GAS OR OTHER

HYDROCARBON SUBSTANCES AND ALL MINERALS OF EVERY KIND AND NATURE IN OR UNDER OR PRODUCED FROM BELOW 500.00 FEET FROM THE SURFACE OF

THE ABOVE DESCRIBED PROPERTY, AS RESERVED BY HAYDEN WORTHINGTON AND BETTY WORTHINGTON, HUSBAND AND WIFE AND RANCHO MENIFEE, INC., IN DEED RECORDED JUNE 5, 1957 AS INSTRUMENT NO. 41040, OFFICIAL RECORDS.

ALSO EXCEPT ALL REMAINING INTEREST IN ALL OIL, OIL RIGHTS, MINERALS,

MINERAL RIGHTS, NATURAL GAS RIGHTS, AND OTHER HYDROCARBONS BY

WHATSOEVER NAME KNOWN, GEOTHERMAL STEAM AND ALL PRODUCTS

DERIVED FROM ANY OF THE FOREGOING THAT MAY BE WITHIN OR UNDER SAID

LAND TOGETHER WITH THE PERPETUAL RIGHT OF DRILLING, MINING,

EXPLORING AND OPERATING THEREFORE AND STORING IN AND REMOVING THE

SAME FROM SUCH LAND OR ANY OTHER LAND, INCLUDING THE RIGHT TO

WHIPSTOCK OR DIRECTIONALLY DRILL AND MINE FROM LANDS OTHER THAN

SAID LAND, AND TO BOTTOM SUCH WHIPSTOCKED OR DIRECTIONALLY DRILLED

WELLS, TUNNELS AND SHAFTS UNDER OR BENEATH OR BEYOND THE EXTERIOR

LIMITS THEREOF, AND TO REDRILL, RETUNNEL, EQUIP, MAINTAIN, REPAIR,

DEEPEN AND OPERATE ANY SUCH WELLS OR MINES, WITHOUT, HOWEVER, THE

RIGHT TO DRILL, MINE, STORE, EXPLORE AND OPERATE THROUGH THE SURFACE OR THE UPPER 500.00 FEET OF THE SUBSURFACE OF SAID LAND, AS RESERVED BY

THE LUSK COMPANY, A CALIFORNIA CORPORATION IN INSTRUMENT RECORDED OCTOBER 28, 1987 AS INSTRUMENT NO. 310333 AND DECEMBER 15, 1988 AS INSTRUMENT NO. 367887, OFFICIAL RECORDS.

PARCEL II:

RECIPROCAL EASEMENTS FOR INGRESS AND EGRESS, UTILITIES,

CONSTRUCTION, MAINTENANCE AND RECONSTRUCTION, AND INCIDENTAL

PURPOSES, AS DESCRIBED IN THAT CERTAIN OPERATION AND EASEMENT

AGREEMENT EXECUTED BY DAYTON HUDSON CORPORATION, A MINNESOTA CORPORATION AND THE LUSK COMPANY, A CALIFORNIA CORPORATION.

Item Title: 11.2
Economic Development Operating Incentive Agreement with Savage Chef and Co.

Item Page Number: 28
Menifee Mayor and City Council April 20, 2022

882/031858-0003
17698595.3 a04/07/22
EXHIBIT “B”
Development Plan
Item Title: 11.2
Economic Development Operating Incentive Agreement with Savage Chef and Co.

Item Page Number: 29
Menifee Mayor and City Council April 20, 2022

ECONOMIC DEVELOPMENT SUBSIDY REPORT
PURSUANT TO GOVERNMENT CODE SECTION 53083

FOR AN OPERATING COVENANT AGREEMENT BY AND BETWEEN THE CITY OF MENIFEE AND SAVAGE CHEF AND CO.

Pursuant to Government Code Section 53083, the City Council must hold a public hearing, and prior to the public hearing, provide all of the following information to the public in written form available through the City’s website, regarding a proposed economic development subsidy to be provided by the City pursuant to a sales tax incentive program agreement by and between the City of Menifee and Savage Chef and Co. (“Agreement”). Notice was published on City’s website for a public hearing to be held on April 20, 2022.

The purpose of this report is to provide the information required pursuant to Government Code Section 53083 in regard to the Agreement. This report shall remain available to the public (and posted on the City’s website) during the entire term of the economic development incentive agreement (described in Item #2, below).

1. The name and address of all corporations or any other business entities, except for sole proprietorships, that are the beneficiary of the economic development incentive:

The proposed agreement for operation of a restaurant (the “Agreement”) is with the City of Menifee and Savage Chef and Co. dba Savage Chef Bar & Grill, with headquarters located at 30145 Antelope Road, Suite 106, Menifee, CA 92584.

2. The start and end dates and schedule, if applicable, for the economic development incentive.

The subsidy reimbursement amount of $50,000 for the operation of the restaurant is paid or payment starts once the certificate of occupancy is given, inspected and approved by the City of Menifee. The term of the agreement ends when five years is reached or the total reimbursement cost of $50,000 has been reached for the operation of the restaurant, whichever comes first.

3. A description of the economic development incentive, including estimated total amount of the expenditure of public funds by, or revenue lost, the local agency as a result of the economic development incentive.

Savage Chef Bar & Grill is planning to lease space to complete tenant improvements, expand the outdoor patio, create a meal prep business, add a boutique high-quality sit-down restaurant concept and add a wrap around bar. Additionally, Savage Chef Bar & Grill will also provide light entertainment, and create delicious, healthy, and exciting experiences for residents, and visitors, while increasing the amount of jobs in the City, and hire locally when possible. The operation of the restaurant is located at 30145 Antelope Road, Suite 106, Menifee, CA in a 4000 sq ft. space, within the Mercato del Sole, formerly known as Menifee Town Center, shopping center.

This Agreement would obligate Savage Chef and Co. to: (1) Use best efforts to review and hire employees from menifee or the local area; (2) to operate a sit-down restaurant which will be reimbursed at 50 percent of the future annual sales tax revenue (one percent (1%); excluding Item Title: 11.2
Economic Development Operating Incentive Agreement with Savage Chef and Co.

Item Page Number: 30
Menifee Mayor and City Council April 20, 2022

Measure DD funds) generated up to a five-year period for up to $50,000 dollars, whichever comes first.

The Agreement would obligate Savage Chef and Co. to report and remit sales/use and transaction/use taxes to the City to the California Department of Tax and Fee Administration annually. Over the term of the Agreement, it is estimated that Savage Chef Bar and Grill will generate $XX gross sales tax revenue (Property tax, sales tax, measure DD) to the City. Under the Agreement, the City of Menifee would rebate 50% of only the one percent (1%) future sales tax revenue, approximately $50,000 for the operation of the restaurant.

4. A statement of the public purposes for the economic development incentive.

In accordance with the City of Menifee City Council approved Ordinance No. 2013-130, creating the Menifee Business Incentive Program to encourage economic growth within the City of Menifee. The intent of the program is to incentivize and attract new quality business developments in an effort to improve the overall Menifee economy, make available amenities that residents and businesses have requested, provide jobs, and generate long term revenues to support City services. Savage Chef and Co. is a sales tax producing business for the City of Menifee and would afford the City to contribute to the services needs of the City, as well as create a healthy dining and entertainment use for residents and visitors, and assist with an infill vacancy issue in the neighborhood center in the City removing blight.

5. The Projected tax revenue to the local agency as a result of the economic development subsidy.

As described above, the Agreement projects that the City would generate at least $32,264,950 in gross new sales revenue from the operation during the five year period. Of that, $326,495 gross sales tax revenue-$50,000 Savage Chef and Co. reimbursement = $276,495 in estimated net taxable revenue to be collected by the City over the term of the Agreement.

6. The estimated number of jobs created by the economic development incentive, broken down by full-time, part-time and temporary positions.

The Agreement obligates Savage Chef and Co. to use their best efforts to review and hire local residents, as a Requirement. It is estimated this project will create approximately 35 positions in the City of Menifee when Savage Chef Bar and Grill is fully operational and staffed.

Item Title: 11.2
Economic Development Operating Incentive Agreement with Savage Chef and Co.

Item Page Number: 31
Menifee Mayor and City Council April 20, 2022

NOTICE OF PUBLIC HEARING
TIME OF HEARING: 6:00 p.m. or as soon as possible thereafter.

DATE OF HEARING: April 20, 2022
PLACE OF HEARING: MENIFEE CITY COUNCIL CHAMBERS
29844 HAUN ROAD
MENIFEE, CA 92586
The City Council will hold a public hearing in the Council Chambers of the Menifee City Hall, 29844 Haun Road, Menifee, California, on April 6, 2022, to consider a proposed Agreement to Enter into Covenant to Operate and to Share Sales Tax Revenue (“Agreement”) between the City of Menifee and Savage Chef and Co. (“Owner”). The purpose of the hearing is to receive public testimony on the proposed Agreement. The Agreement would facilitate the reimbursement of operating costs of the restaurant located at 30145 Antelope Road, Suite 106, Menifee, CA (Mercato del Sole formerly known as, Menifee Town Center) through the City’s provision of reimbursement of payments to the Owner, based on the sales tax revenue, not including Quality of Life Measure DD revenues or property tax, generated by the restaurant. All interested parties are invited to attend this hearing and express opinions regarding this item.

For further information regarding this Agreement, please contact Gina Gonzalez, at (951) 723-3711 or e-mail [email protected] or go to the City of Menifee’s agenda web page at http://www.cityofmenifee.us.

Please send all written correspondence to:

CITY OF MENIFEE OFFICE OF ECONOMIC DEVELOPMENT
Attn: Gina Gonzalez, Economic Development Director
29844 Haun Road
Menifee, CA 92586
Item Title: 11.2
Economic Development Operating Incentive Agreement with Savage Chef and Co.

Item Page Number: 32
Menifee Mayor and City Council April 20, 2022

CITY OF MENIFEE
SUBJECT: Mobile Home Rent Stabilization
MEETING DATE: April 20, 2022
TO: Mayor and City Council
PREPARED BY: Molly Binnall, Management Analyst
REVIEWED BY: Cheryl Kitzerow, Community Development Director APPROVED BY: Armando G. Villa, City Manager
-------------------------------------------------------------------------------------------------------------------------------

RECOMMENDED ACTION

1. Review and discuss options for repealing and replacing County Ordinance No. 760.

DISCUSSION
At a previous City Council meeting held on April 21, 2021, Councilmember Karwin requested a future agenda item (seconded by Councilmember Dienes) related to mobile home rent stabilization in response to a public comment from a resident. Staff returned on August 18, 2021 and presented Council with Mobile Home Park Rent Stabilization Ordinance No. 760, which the City had adopted from the County of Riverside upon incorporation. Council directed staff to present items for discussion to repeal and replace the existing Ordinance with one that would better serve the City.

Background
Ordinance No. 760, Mobile Home Park Rent Stabilization, was originally established by the County of Riverside to encourage fair bargaining between mobile home residents and mobile home park owners to preserve the value of the resident’s mobile homes and the park value as a whole. The Ordinance was created to address mobile home parks specifically in the unincorporated areas of Riverside County, and only applied to those space rent agreements that were entered into prior to January 1, 1990, consistent with provisions of California State law.

The existing Ordinance regulations include:

Annual Rent Increase: Mobile home park owners are allowed to automatically increase rental rates up to 100% of the Consumer Price Index (CPI) annually, plus potentially have additional increases based on Net Operating Income and capital improvement projects (as defined in the Ordinance).

Item Title: 12.1
Mobile Home Rent Stabilization
Item Page Number: 1
Menifee Mayor and City Council April 20, 2022

City of Menifee Staff Report
Mobile Home Rent Stabilization Discussion
April 20, 2022

9 2
7 Annual Registration and Fees: Each mobile home park owner is required to collect $12 per unit space per year and remit (to the County/City) for Ordinance maintenance.

Defined Allowed and Not Allowed Operating Expenses: “Allowed operating expenses” are fees authorized to be added to the rental rate annually without a petition. These include real property tax, utility costs, normal repair and maintenance expenses, license and registration fees, and management fees. “Not allowed operating expenses” are fees that are not authorized to be added to the rental rate at any time unless approved by the Hearing Officer or Mobile Home Board via petition. These include mortgage principal and interest payments, lease purchase payments, code violation charges, uninsured expenses, and real property depreciation.

Petitioning Process: The process allows mobile home park owners to petition for a rental increase if it is believed the annual allowed increase does not provide a fair return. It also allows mobile home park residents to dispute any proposed or actual rental increases by park owners.

Both types of petitions require fees from the applicants to cover costs and are reviewed by a Hearing Officer. Any decision made by the Hearing Officer may be appealed to the Mobile Home Board and proceed through arbitration overseen by the City.

Mobile Home Board: A regulating board consisting of 5 members and 2 alternate members to administer and enforce the Ordinance. Their duties include reviewing appeals from mobile home park owners or residents where a Hearing Officer’s decision is challenged, conducting public hearings, and providing determination on the appeal. The board can also approve rent adjustments as well as conduct studies and investigations. Each board member is entitled to compensation. The (County/City) shall provide all administrative support needs to the board.

Exemptions from the Ordinance: This Ordinance does not pertain to any mobile home park constructed after January 1, 1990, any rental agreement in excess of 12 months, any mutually agreed upon lease terms, or any increase that 2/3 of all residents affected by the increase approve in writing.

The current Ordinance is not consistent with City operations or administrative setup. Staff is recommending a discussion of these topics and direction for preparing a streamlined replacement Ordinance for Council’s consideration.

STRATEGIC PLAN OBJECTIVE
Livable and Economically Prosperous Community

FISCAL IMPACT
There is no fiscal impact associated with this item.

ATTACHMENTS

1. Riverside County Ordinance No. 760
Item Title: 12.1
Mobile Home Rent Stabilization
Item Page Number: 2
Menifee Mayor and City Council April 20, 2022

Ord. 760 - Page 1
ORDINANCE NO. 760
(AS AMENDED THROUGH 760.2)

AN ORDINANCE OF THE COUNTY OF RIVERSIDE
AMENDING ORDINANCE NO. 760 ADOPTING A MOBILE HOME

PARK RENT STABILIZATION ORDINANCE

The Board of Supervisors of the County of Riverside, State of Ca lifornia, ordains as follows:

1. TITLE

This Ordinance may be cited as the Mobile Home Park Rent Stabilization Ordinance of the County of Riverside.

2. STATEMENT OF PURPOSE AND FINDINGS
.

A. Mobile home owners have a substantial investment in their residences and appurtenances for which space is rented or leased. Alternat e sites for relocation of mobile homes are difficult to find due to rest rictions on age, size, or style of mobile homes permitted in many parks, and related to the installation of mobile homes, including permits, landscaping and site preparation. Additionally, the cost of moving a mobile home may be substantial, and the risk of damage in moving is significant.

B. A significant percentage of the residential population of the unincorporated area in Riverside County resides in mobile homes.

C. Mobile homes are often occupied by seni or citizens, persons on fixed income and persons of low or moderate income, where extreme rent adjustments fall upon these individuals with particular harshness. Many mobile home owners have a substantial portion of their net asset wo rth invested in their mobile homes. The continuing possibility of unreasonable space rental adjustments in mobile home parks threatens to diminish the value of the in vestment of the mobile hom e owners in their homes.

Further, existing state law permits mobile home park owners to require mobile home owners to make modifications to their homes for reasons of aesthetics or conformity to park standards that amount to capital improvements which would accrue to the benefit of the park owner by potentially increasing the market value of the park itself.

D. The result of these conditions is the creati on of a captive market of mobile home owners and tenants. This, in turn, contributes to the creation of an imbalance in the bargaining relationship between park owners and mobile home park tenants in favor of the park owners.

E. The Board of Supervisors of Riverside County finds and declares it necessary to facilitate and encourage fair bargaining between mobile home owners and park owners in order to achieve mutually satisfactory agreements regarding spac e rental rates in mobile home parks (a) to preserve to the residents the value of their mobile homes and (b) to preserve to the park owners the value of their parks. Absent such agreements, this Board further finds and declares it necessary to protect the owners and residents of mobile homes from unreasonable space rent al adjustments while simultaneously recognizing and providing for the need of park owners to receive a just and reasonable return on their property.

F. Administration of this Ordinance shall be under the general direction of the Riverside County Mobile Home Ordinance Director hereinafter referred to as Director.

3. APPLICATION .

The provisions of this Ordinance shall apply to all mobile home residential rental spaces Item Title: 12.1
Mobile Home Rent Stabilization
Item Page Number: 3
Menifee Mayor and City Council April 20, 2022

Ord. 760 - Page 2
located within the unincorporated area of Riverside County except if otherwise exempt from the provisions of this Ordinance, as such exemptions are provided for hereinafter in this Ordinance and by law. Nothing in this Ordinance s hall be deemed to supersede any provision of California Civil Code Section 798 et seq. as it may be amended.

4. DEFINITIONS .

In construing the provisions of this Ordinance, the following definitions shall apply:

A. ”Base year” is the calendar year 1991; or the y ear established by the most recent (prior) hearing before the Arbitrator or Board; or, if necessary, the year established by the Arbitrator or Board in parks that have sold since 1991.

B. "Consumer Price Index" or "C. P. I. means the Index known as the "Consumer Price Index for all Urban Consumers for the Los Angeles-Anaheim-Riverside Area, (1982- 1984) and thereafter or the index which may replace this index if it is discontinued.

C. "Landlord" means any owner, lessor, operator or manager of a mobile home park.

D. "Mobile Home" or mobile home means a structure designed for human habitation and for being moved on a street or highway under permit pursuant to Section 35790 of the Vehicle Code. Except as provided in Civil Code Section 798.3, mobile home does not include "recreational vehicle" as defined in Section 799.29 of the Civil Code or a "commercial coach" as defined in Section 18001.8 of the Health and Safety Code.

E. "Mobile Home Owner" or "Resident" means any person entitled to occupy a mobile home dwelling space pursuant to ownership thereof or a rental or lease agreement with the owner thereof.

F. "Mobile Home Park Owner" or "Park Owner" means the owner, lessor, operator, manager or designated agent thereof of a mobile home park; sometimes referred to as "owner."
G. "Mobile Home Space or Space" means the site within a mobile home park intended, designed, or used for the location or accommodation of a mobile home and any accessory structures or appurtenances atta ched thereto or used in conjunction therewith.

H. "Rent Adjustments" means any rent increase or decrease demanded of or paid by a tenant, including any reduction in housing services without a corresponding reduction in the monies demanded or paid for rent.

I. "Rental Agreement" means an agreement between a mobile home park owner and tenant establishing the terms and conditions of a tenancy in a mo bile home park. A lease is a rental agreement.

J. "Residential rental space" means any mobile home space occupied by any person other than the owner of the park for payment of rent pursuant to an oral or written lease, or other form of rental agreement.

K. "Space Rent" means the consideration, including any bonuses, benefits, or gratuities demanded or received for and in connection wit h the use or occupancy of a mobile home space within a mobile home park, or for housing services provided and security deposits, but exclusive of any amounts paid for the use of the mobile home as a dwelling unit. The use or occupancy of a mobile home space shall include the exercise of all rights and privileges and the use of facilities, services and amenities accruing to the residents thereof. "Space Rent" shall not include any separately billed utility fees and charges for natural gas or liquid propane gas, electricity, water, cable television, garbage or refuse service and sewer service.

L. “Tenancy" means the right of a tenant to the use of a mobile home site within a mobile home park on which to locate, maintain, and occupy a mobile home, site improvements and accessory structures; for human habitation, including the use of the services and Item Title: 12.1
Mobile Home Rent Stabilization
Item Page Number: 4
Menifee Mayor and City Council April 20, 2022

Ord. 760 - Page 3
facilities of the mobile home park.

M. “Tenant" means any person entitled to occupy such mobile home space pursuant to an oral or written lease with the owner thereof, or pursuant to some other rental agreement with the owner, lessor, operator or manager thereof.

5. EXEMPTIONS FROM COVERAGE.

The provisions of this Ordinance shall not apply to the following:

A. Newly Constructed Space - Space rent or space rent adjustments for new mobile home spaces whether in parks constructed after January 1, 1990 or spaces rented out for the first time after January 1, 1990 shall be exempt from the provisions of this Ordinance. Civil Code Section 798.45.

B. Vacancies

1. Subject to the exceptions in paragraphs 2 and 3 below, if the mobile home space or mobile home is (a) voluntarily vacated, abandoned or repossessed, or (b) vacated pursuant to California Civil Code Sections 798.56 or 798.75 the landlord may adjust the rental rate to an amount as he or she in his or her discretion may determine.

2. Subject to the provisions of Civil Code Section 798.17, if the mobile home is sold in place and is to remain on site, the landlord may only increase the rental rate of the space to the new owner to an amount that is no greater than the average of the three highest rentals then currently being charged by the park owner for resident owner occupied spaces of comparable size, location and amenities in the park.

3. In the event a resident owner must move from his or her mobile home because of a need for long term medical or custodial care, the space shall remain subject to this Ordinance during the time t hat the owner is absent and remains incapacitated. In those parks that allow subletting, the absent and incapacitated owner may sublet the mobile home for a charge not to exc eed the space rent and utilities and all legally allowable pass through costs for a period of time not to exceed twenty-four (24) months without removing the space from the protection of this Ordinance.

C. Space Rent Agreement Exemption - Any rental agreement in excess of twelve- months duration which also meets all criteria specified by Section 798.15 and Section 798.17 of the California Civil Code, including, but not limited to, the tenant notification requirement within the first paragraph of such rental agreements, shall be exempt from the space rent ceiling provisi ons of this Ordinance, but only during the term of such rental agreement or any uninterrupted, continuous extensions thereof. If such rental agreement is not extended and no new rental agreement in excess of twelve-months duration is entered into, then the last month’ rent under the expired rental agreement shall be the base rent for purposes of this Ordinance. Any rental agreement exempt from this Ordinance by virtue of this s ubsection shall remain so exempt despite voluntary amendments made thereto, as long as any amendments extending the term contain the disclosures required by Section 798.17 of the California Civil Code.

D. Lease Agreement Exemption - Section 7 of this Ordi nance does not apply to any residential rental space for the rental of which the mobile home park owner and the tenants have mutually agreed to enter into a lease which conforms to the provisions of California Civil Code Section 798.15 et seq.

E. Tenant Approval - This Ordinance does not apply if tw o-thirds of all mobile homes affected by the rent increase or other action give their approval in writing as evidenced Item Title: 12.1
Mobile Home Rent Stabilization
Item Page Number: 5
Menifee Mayor and City Council April 20, 2022

Ord. 760 - Page 4
by the signature of one tenant for each space or in an election called to consider the matter with each space casting one vote. T he park owner shall supply proof of such approval to the Director for verification.

F. Violation - No person shall perform any act of duress, menace, or undue influence with the intent of thereby obtaining the consent of any other person to enter into any lease for the occupancy of a residential rental space in a mobile home park.

6. REGISTRATION AND FEES .

A. Within ninety (90) calendar days after the effe ctive date of this Ordinance, mobile home park owners are required to register all mobile home parks and mobile home rental spaces within such parks with the Mobile Home Ordinance Director, hereinafter referred to as “Director.”
The initial registration shall include: the name(s), business address(s), business telephone number(s) of each person or legal entity possessing an ownership interest in the park and the nature of such interest; the number of mobile home rental spaces within the park; and the number of spaces currently exempt under Civil Code Sections 798.17 and 798.45.

The Director is hereby empowered to establish procedures for requiring such re- registration as he or she deems necessary.

B. After initial registration and on an annual basis , thereafter and until further order of this Board, each space in the park then subject to the provisions of this Ordinance and not otherwise exempt under provisions in the Mobile Home Residency Law, i.e, Civil Code Section 798.17 and 798.45, shall be charged and pay a fee of $12 per space per year to cover the costs of administering this Ordi nance. The fee shall be collected by the park owner who shall promptly remit all of the per space fee collected except one dollar ($1) per space to the Director who shall us e the monies so received solely for the purposes of covering the costs of administering this Ordinance. The park owner shall be entitled to retain one dolla r ($1) of the fee amount so collected to cover the park owner’s expenses in complying with this Ordinance.

C. No park owner shall be eligible to receive any rent ceiling adjustment as provided for under the provisions of this Ordinance unless such current registration information as may then be required for the mobile home park is on file with the Director at the time the petition for the rent ceiling adjustment is filed.

The registration and re-registration require ments provided for in this section, or which may be hereafter established by the Board, shall apply to all mobile home parks including those exempt from the space rent ceiling limitation by reason of the existence of a valid space rent agreement. Regist ration shall not apply to parks that were constructed in 1990 or later.

7. SPACE RENT CEILING OR MAXIMUM ALLOWABLE SPACE RENT.

Beginning the first month which commences following the day after the effective date of this Ordinance, no mobile home park owner shall charge space rent for any mobile home space in an amount greater than (a) the space rent in effect on December 31, 1991 increased by the increase in the C.P.I. since that date or (b) the rent for the space that is in effect on the effective date of this Ordinance. The space rent in effect on that date shall be known as the "space rent ceiling."
If there was no space rent in effect on December 31, 1991, the space rent ceiling shall be the space rent that was c harged on the first date that space rent was charged after December 31, 1991(with the exception above noted) adjusted by the C.P.I. to the current date as indicated above or the rent fo r the space that is in effect on the effective date of this Item Title: 12.1
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Ordinance.

If a mobile home park space is exempted fr om the application of this Ordinance by reason of the existence of a space rent agreement and the agreement expires, the space rent ceiling for that space shall be the space rent in effect on the date the agreement expires.

8. SPACE RENT CEILING ADJUSTMENT - INITIAL ADJUSTMENT .

A. No adjustment in space rent ceilings shall be permitted except as provided for herein.

B. Permissive Adjustment - A park owner shall be entitl ed to an initial permissive adjustment gross space rental inco me equal to one hundred (100%) percentage increase in the Consumer Price Index (CPI) from the end of the base year (1991) to the date of application for the adjustment.

The percentage adjustment in the CPI sha ll be calculated by subtracting the CPI reported for December, 1991, from the most recently reported monthly CPI preceding the application and then dividing this remainder by the December, 1991, CPI.

9. SPACE RENT CEILING ADJUSTMENT - ANNUAL ADJUSTMENTS .

Commencing in calendar year 1996, park owners shall be entitled the following annual adjustments.

A. Permissive Annual Adjustment

1. A park owner shall be entitled to one annual permissive adjustment of gross space rental income equal to one hundred percent (100%) of the percentage adjustment in the CPI from the date of the most recent initial or annual adjustment to the date of application for the proposed adjustmen t. No application or permission is required for the annual adjustment under this section.

B. Net Operating Income Adjustment

1. In the event a park owner believes he or she does not receive a just and reasonable return on park property afte r receiving the maximum permissive adjustment provided for abov e, the park owner may, upon payment of a filing amount as hereinafter provided, file a petition with the Director for an adjustment of the space rent ceiling,(using the form attached hereto as “Exhibit A”) providing adequate justification for the proposed increase.
(a) Upon the filing by a park owner of a pet ition for hardship rent increase, the Director shall request a deposit from the petitioner who shall pay 50% of the anticipated cost of the proceedings. Any final decision of t he Arbitrator or Mobile Home Board (or final decision of a Hearing Officer if not appealed to the Board) shall contain an estimate of the total expenses of the Hearing process. The petitioner shall be obli gated to pay, as a fee, one-half of the total cost of said hearing process (le ss the deposit). Any hardship rent increase may be conditioned upon the payment of said fee. In the event that the deposit exceeds one-half of the ex pense of the hearing process, the petitioner will be entitled to a refund of that difference.

2. Such petition shall be in writing verifi ed by the applicant, and shall contain the names, address and telephone number of the applicant, the name and address of the tenant of each rental space which would be affected if the petition were granted, a statement of the facts giving rise to the petition for an NOI adjustment in sufficient detail that, if established, such facts would demonstrate the existence of a decrease in the NOI warranting such NOI adjustment. Within thirty (30)working days after the petition has been submitted to the Director for filing, petitioner shall be given notice of the time and place of the hearing, which notice together with a copy of the petition shall be served upon or mailed to each tenant of a rental space Item Title: 12.1
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which would be affected by the NOI adjustment if granted. When a declaration of service has been submitted to the Director, the petition for an NOI adjustment shall be deemed filed.

3. A park owner shall be entitled to an adjustm ent of the space rent ceiling so as to enable the park owner's Net operating Income (NOI) for the subsequent year to be increased by a rate which, when added to the maximum permissible adjustment provided for above will give the park owner a just and reasonable return on park property. In determining whether the current NOI is adequate in comparison with the base year NOI, the NOI for the park earned in the base year shall be increased by the amount of the CPI increase from the base year to the date of the proposed rental increase.

C. No annual adjustment shall become effectiv e if a previous annual adjustment became effective within the previous twelve (12) months unless approved by Arbitrator or the Board.

D. Rent Increase Based upon Capital Improvements.

1. An application for a rent increase based on the cost of a proposed or completed capital improvement may be filed by the park owner with the Director pursuant to this subsection. For the purposes of this subsection "Capital Improvement" is defined as the installation of new im provements and facilities, and/or the replacement or reconstruction of existing improvements and facilities which consist of more than ordinary maintenance or repairs, with a useful life of at least five (5) years. A capital improvement shall be approved by the Arbitrator or Board where the improvement has been agreed upon betw een the park owner, and by more than 50 percent (50%) of the owners of all mobile homes affected by the improvement in an election called to consider the matter with each space casting one vote.

2. A capital improvement shall be approved if the improvement is required (a) to maintain the common facilities and other areas of the park in a safe and sanitary condition (b) to maintain the existing level of park amenities and services, or (c) to comply with the law or an administrative r egulation. No vote of Mobile Home owners shall be required for approval under this provision.

3. Capital improvement costs for items which are not nec essary or approved as described above, in paragraphs 1 and 2, shall be allowable rent increases only if the park owner has (a) consul ted with the park residents to be affected prior to initiating construction of such improvements, regarding the nature and purpose of such improvements and the estimated co st of such impr ovements, and (b) demonstrated the need for t he improvements and the reasonableness of the anticipated costs.

4. Capital Improvement rent in creases shall be amortized over the useful life of the improvement as set forth in Internal Re venue class life tables then in effect, unless the Arbitrator or the Board at its discretion determines that the use of such tables is unreasonable under the circumstances.

5. In addition to the reasonable cost of t he improvement(s) and the reasonable costs of financing, the rent increase shall include a return of two percent (2%) over the prime rate at Bank of America in effect at the time the rent increase is approved calculated annually on the unamortized cost improvement.

6. In the event the need for the c apital improvement is a result of an accident, isaster, or other event for which the park owner receives insurance benefits, only those capital improvement cost s which exceed such insurance benefits may be amortized as operating expenses unless the uncovered loss or portion thereof is a Item Title: 12.1
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result of an underinsured or uninsured loss in which event the underinsured or uninsured portion is disallowed unless prudent business practices would not require it to be insued.

7. Capital Improvement rent increases shall be apportioned equally among all spaces in the mobilehome park affected thereby and shall be payable monthly, and shall be set forth by the park owner as a separ ate item from the space rent. The increase shall remain in effect until the cost of the improvement, plus reasonable costs of financing as set forth above, have been fully recovered.

8. The application for the cost of a comple ted capital improvement or the estimated cost of a proposed capital improvement shall contain:
(a) A description of the capital improvement;
(b) A copy of all estimates, contracts, bills, invoices, canceled checks and other documentation reasonably necessary to es tablish the cost of the capital improvement and the reasonable cost of financing the capital improvement.

If, instead of borrowing the money to make the capital improvement, the park owner uses his or her own funds, the reasonable cost of financing which will be allowed shall be the average prime rate charged by the Bank of America for the three months preceding the star t of construction of the capital improvement; and
(c) If the capital improvement has been agreed upon between the park owner and by more than fifty percent (50%) of the owners of all mobile homes affected by the improvement, proof of that fact will be submitted with the application.

9. A petition by tenants, as allowed by Secti on 12, will be limited to challenging the special increase for a capital improvement only on the basis that it does not meet the criteria established by Section 9.D of this Ordinance.

10. The Hearing Officer, Arbitrat or or Board may, in its di scretion, approve the capital improvement without the necessity of a hearing, as provided for in this Ordinance.

11. No rent increase for a proposed capital improvement may be collected until the park owner provides proof to the Director that the improvement has been completed.

10. REQUIRED CERTIFICATION ON RENTAL ADJUSTMENT NOTICE .

The Arbitrator or Board shall have the right to deny any rent adjustment under this Ordinance if the owner:

A. Has failed to comply with any provisions of this Ordinance and/or regulations issued there under by the Director or the Board of Supervisors.

11. MOBILE HOME RENT BOARD ESTABLISHMENT AND POWERS.

A. The Board of Supervisors hereby reserves t he right to establish a Mobile Home Board for the County of Riverside and to activate the Board as an agency to replace the function of the Arbitrator, at such time as the Board of Supervisors, in its discretion, so chooses. If the Board is activated, the arbi tration procedures in Section 15 of this Ordinance shall also be applicable to the Board.

B. Composition - If established, the Board shall consist of five (5) regular members and two (2) alternate members. One regular member shall be a space tenant who resides in the unincorporated area of the County of Riverside; one member shall be a mobile home park owner, operator, manager or designated agent of a mobile home park located in the unincorporated area of Riverside County. The two alternate members shall be a space tenant from a different mobile home park in the unincorporated area of Riverside County other than the regular space tenant member and an owner, operator, Item Title: 12.1
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manager or designated agent from a different mobile home park in the unincorporated area of Riverside County other than the regular owner member. The remaining three (3) members shall be residents of the unincorporated area of Riverside County who are not elected officials, or em ployees, relatives of elected officials of the County of Riverside, and who are neither tenants, owners, operators, managers or designated agents of mobile home parks and who have no conflicts of interests due to relationship with same. Candidates for membership of the Board shall submit a verified statement listing all interests in any real property or mobile home as defined in Section 798.3 of the California Civil Code, includi ng ownership, individually, jointly, legal or equitable, and all sales of such property, or instruments secured by such property, within ninety (90)days of seeking appointment to the Board.

C. Nomination and Appointment - The regular space tenant member and his or her respective alternate members shall be selected by the Board of Supervisors from a list of nominations, if any, for the Mobile Home Board submitted by mobile home residents.

The regular mobile home park owner mem ber and his or her respective alternate member shall be selected by the Board of Supervisors from a list of nominations, if any, supplied by a general association on behalf of the various mobile home park owners associations with parks in t he unincorporated portions of t he County. The Board of Supervisors shall nominate and appoint the three remaining regular Board members.

All members of the Board shall be sele cted in accordance with applicable County procedures.

D. Term - Each regular member of the Mobile Home Board shall serve for a term of two years except as otherwise pr ovided herein. For the firs t Board, the one (1) space tenant member and the one (1) owner member and three (3) at-large members from the unincorporated areas of the County sha ll be appointed for three (3)-year terms.

Thereafter, the successors shall be appointed for terms of two (2) years. Each regular member shall hold office until a new member has been duly appointed and assumed his or her duties. Each alternate member of the Board shall serve for a term of two (2) years except as provided herein. Each alternate member shall hold office until a new alternate member has been duly appointed and assumes his or her duties. If a vacancy occurs or an office becomes vacant other than by expiration of a term, it shall be filled by the Board of Supervisors by appointment as previously prescribed herein for the unexpired portion of such member's term. Notwithstanding the above provisions of this paragraph, a member may be removed, at any time, with cause, by a majority vote of the Board of Supervisors. Further notwithstanding the above provisions of this paragraph, any member who is absent without sufficient cause as determined by the Board of Supervisors from three (3) consecutive meetings of the Mobile Home Board which such member was required to attend shall be deemed to have vacated his or her office.

E. Meetings - To fulfill its function, the Mobile Home Board shall meet as often as it deems necessary, but at least one regularly sc heduled public meeting shall be held every ninety (90) days; or, except as otherwise set forth herein, within thirty (30) days of any request for a hearing or arbitration held hereunder, whichever is earlier. All members of the Board, whether regulars or alternates, shall be required to attend all Board meetings and hearings unless such member has been disqualified from participation. No park owner or tenant member may participate in any decision regarding her or her mobile home park. All meetings of the Board shall be conducted in accordance with the provisions of the Ralph M. Brown Act. (Government Code 54950 et seq.) F. Voting - The affirmative vote of three (3) members of the entire five member Board is required for a decision, including all motions , regulations, and orders of the Board.

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Alternate members may also participate in the Board proceedings but shall have voting privileges only when acting in the place of an absent regular member.

G. Quorum - Three (3) Board members shall constitute a quorum as long as one member from each category of representative membership is present.

H. Powers and Duties of Board - The Board shall undertake and have the following duties, responsibilities, and functions, together with all powers reasonably incidental thereto:
1) Adoption of Rules and Regulations . Subject to the approval of the Board of Supervisors the Mobile Home Board may make and adopt its own administrative rules and regulations as may be necessary to effectuate the purposes and policies of this Ordinance and to enable t he Board to carry out its powers and duties there under, so long as such rules and regulations are consistent with the laws of the State, this Ordinance, and any Guidelines adopted by the Board of Supervisors. Any such rules and regulations of the Mobile Home Board shall be reduced to writing and shall be on file with the Director of the Board at all times.

I. Director
- The County Executive Officer sha ll appoint a Mobile Home Ordinance Director, hereinafter referred to as "the Dir ector", to administer this Ordinance and assist the Arbitrator or t he Board in its responsibilitie s. The Director may be an employee of the County of Riverside or ma y be retained by contract and shall be responsible for the day-to-day operations of this Ordinance.

1. Maintenance of Records. The Director shall keep a record of proceedings under this Ordinance, which shall be open for inspection by any member of the public.

2. Appointment of Committees, Mediators or Hearing Officers. The Director may appoint committees, mediators and H earing Officers to hear matters on which testimony may be taken, whic h committees, mediators and Hearing Officers shall report to the Director the findings and results of any such hearing on a matter referred to such committee or person.

J. Conduct Studies and Investigations - The Mobile Home Board, upon the approval of the Director, shall have the power to make such studies, surveys, and investigations, conduct such hearings, and obtain such informa tion as is necessary to carry out its powers and duties, and may authorize individual members to do so.

K. Approve Rent Adjustments - The Mobile Home Board may approve such adjustments in rent ceilings as provided for in this Ordinance and any regulations there under.

L. Evaluation - The Director shall render at least annually a comprehensive written report to the Board of Supervisors concerning the activities, hearings, actions, results of hearings, budget and expenses and all other matters pertinent to this Ordinance.

M. Related Duties - The Director shall undertake such other related duties as may be assigned by the Board of Supervisors.

N. Compensation - Each member of the Board and the Director shall be entitled to such compensation as may be established by the Board of Supervisors, including reimbursement for reasonable expenses incu rred in the performance of his or her official duties. The Board and its member s shall not have any authority to expend, commit or authorize the expenditures of any public funds, except with the prior express approval of the Director.

O. Staff - The County of Riverside shall provide or pay for all administrative staff necessary to serve the Director and shall provide or pay for a Secretary to serve as Secretary of the Director. The Director shall be responsible for the maintenance of all records under this Ordinance. The County Counsel or his/her designee or other attorney as selected by the Board of Supervisors shall act as legal counsel.

Item Title: 12.1
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12. PETITION BY TENANT.

A. Any tenant of a mobile home rental space affected by this Ordinance, upon payment of a filing fee of one dollar ($1) and joined by at least 30% of the other tenants similarly affected (each of whom pays one dollar ($1) per space), may petition for a determination whether a propos ed or actual action by the landlord affecting such tenant(s) is within the terms of this Ordinance. If the County shall establish forms for such petitions, the petiti on shall be prepared and submitt ed upon such form. In the absence of such designated fo rm, the petition shall contain the name, address and telephone number, if known, of the landlord, owner, m anager, or other person authorized to represent the ow ner of the mobile home park, a brief statement of the facts giving rise to the petition and a statem ent that a copy of the petition has been personally served or mailed to the owner, manager or other person authorized to accept and receive notices to the landlord.

B. The petition shall also include the name, address, and telephone number of the designated representative of the petitioner(s) to whom notices and other communications respecting the petition are to be transmitted.

C. In the event a petition by a tenant(s) resu lts in a downward adjustment in the space rent, the park owner shall not be obligated to adjust any rent except the rent of those tenant(s) who signed the petition and paid the established filing fee.

D. A petition must be filed wit hin 60 days of notice being given by the park owner or within 90 days of the action actually taken by the park owner when no written notice preceded the action.

E. In the event the petitioner or petitioners are claiming that a net operating income rental increase otherwise allowed by Section 9B above should be disallowed in whole or in part because of conditions of deteriorating maintenance the petitioner(s) shall specify the conditions of deteriorating maintenance in their petition with the specificity required by Civil Code Section 798.84(b).

F. Upon receipt of the petition, the Director shall determine w hether or not the petition contains the minimum number of signatures required. Thereafter, the Director shall notify, in writing, the park owner and the residents of the results of his/her determination.

G. The Director shall in a timely manner a ssign a Hearing Officer who shall conduct an informal hearing in an attempt to reso lve the matter. In making his/her recommendation(s), the Hearing Officer may consider all relevant factors including those listed in this Ordinance.

H. The Hearing Officer shall, if he/she finds it practical to do so, hold the informal hearing at the mobile home park. In any event, the Hearing Officer shall use all reasonable efforts to hold the hearing at a location which is convenient for the residents of the park.

I. The hearing may be attended by no more than two representatives from the affected tenants and two representatives from the park owner. Attorneys shall not be present at the informal hearing(s) unless agreed to by both sides except in a case where the park owner or petitioning tenant(s) is an attorney in which case the other party may be accompanied by its own attorney.

J. Either side may submit wr itten, photographic or other type of documentary evidence to support their contentions, but is not required to do so.

K. The Director shall set time lines by wh ich the informal hearing process must be concluded and shall take all appropriate steps to see that the informal hearing process is conducted in a manner that respects the rights of both sides.

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L. The Hearing Officer shall submit his/her fi nal recommendations in written form to both sides and to the Director.

M. Any agreements reached by the parties s hall be reduced to writing and be signed by them and the Hearing Officer.

N. No statement(s) made by a party in the in formal hearing process may be introduced into evidence or presented before the Arbitrator or Board unless agreed to by side making the statement.

13. PETITION BY LAND ORDINANCE .

Any landlord of a mobile home park affected by this Ordinance may, upon payment of a filing fee of one dollar ($1) per space affected under this Ordinance, petition for a determination whether a particular course of action by said landlord is allowable, valid and in conformity with this Ordinance. The Director may designate forms for the filing of such petitions. In the event that no such form has been designated, the petition shall be in writing, and shall contain the name, address and telephone number, if any, of the person requesting the interpretation or opinion, the name and address of each tenant of a rental space owned or managed by the person requesting the interpretation or opinion, if it is intended that su ch interpretation or opinion affects such rental space, a brief statement of the facts giving rise to the request for interpretation or opinion, and a statement that a copy of su ch petition has been personally served upon or mailed to each such tenant who might be affected thereby.

The Hearing Officer procedures specified in Section 12 G-N inclusive of this Ordinance shall be used for the initial consideration of the landlord’s Petition.

14. APPEAL TO ARBITRATOR OR BOARD .

Any party to a hearing conducted by a Hear ing Officer shall be entitled to appeal the decision to the Arbitrator [or to the Mobile Home Board, if established].

15. ARBITRATION .

A. If a majority of the petitioni ng parties or the park owner wish to proceed to arbitration they shall, within 20 days of notification of the Hearing Officer’s final recommendation, notify the Director in writing of their decision to proceed to arbitration.

B. Within 30 days of notice of t he filing of the request for ar bitration the Mobile Home owner(s) and park owner shall contribute and deposit a sum of money with the Director for the estimated costs of, and as determined by, the Director. In no event shall the mobile home owner(s) contribution exceed $300 or such other amou nt (greater or lesser) as the Director may establish. Failure on the part of the petitioner(s) to deposit its share, shall terminate the proceedings and deny the request. In the event the park owner fails to deposit his share, the Arbitr ator shall enter an or der as to such park owner denying any increase in rent or any other new “pass through” charge for a 12 month period, beginning the date of the notice of increase that is the subject of dispute.

This order shall become effective 30 days fr om the date it is ma iled by the Director unless a stay of execution is granted. Unless such a Judicial stay is granted, any rent increase collected by park owner while this procedure was pending shall be refunded to residents within sixty (60) days of the date of mailing of the notice denying the increase pursuant to this Section, by the Director. If no contrary Judicial order is entered, and the amounts owed are not repaid in sixty (60) days, affected residents may reduce their rental payments next due by the amount over paid. If the amount exceeds 1 month’s payment, the balance shall be deducted the next month until resident has received the overpayment plus 10% of the total as a penalty for park owner not having complied with the provisions of this Ordinance.

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C. In the event a petition by a tenant(s) resu lts in a downward adjus tment in the space rent, the park owner shall not be obligated to adjust any rent except the rent of those tenant(s) who signed the petition and paid the established filing fee.

16. SELECTION OF ARBITRATOR .

A. The County Executive Officer shall, if t he parties cannot otherwis e agree, select the person who is to be the Arbitr ator. The Arbitrator sha ll be selected from a list of recommendations provided by the Board of Directors of the Riverside County Bar Association or such other organization( s) as the County Executive Officer deems appropriate. The Arbitrator shall be a resident of Riverside County and be qualified by education, training and experienc e. The Arbitrator shall be subject to the same restrictions as imposed upon the members at large of the Mobile home Board.

B. The Arbitrator shall not be required to submit the verifi ed statements of economic interest required for at-large members of the Mobile home Board.

C. The County shall pay the Arbitr ator his or her fees as agreed between the Arbitrator and the County Executive Officer.

17. CONDUCT OF PROCEEDINGS .

A. The following is applicable to all hearings befor e the Arbitrator or Mobile Home Board.

B. Each party to a hearing may have assistance in presenting evidence or in setting forth by argument his or her position, from an accountant, attorney or such other person of his own choosing as may be designated by said party.

C. Formal rules of evidence shall not apply in such proceedings; however, all testimony (oral or written) offered as evidence shall be under oath.

D. In the event any party shall fail to appear at the time and place set for hearing of a petition without good cause as determined by the Arbitrator or Board, the Arbitrator or Board may hear and review such evidence as may be presented by those present, and may make such findings and decisions as shall be supported by the evidence placed into the record.

E. The Arbitrator or Board, shall make findi ngs based on the evidence as presented as to each fact relevant to its decision on the petition. The decision shall be based upon the findings, and shall:

1. Determine whether the action or proposed action of a landlord is valid, authorized, and in conformity with this Ordinance;
F. The decision shall be made no later than thir ty (30) days after the matter has been submitted for determination. No rent adjustment shall be authorized unless supported by a preponderance of the evidenc e. A notice of the decision shall be sent to each party to a proceeding.

18. APPEAL TO COURT
. The findings and decisions of the Arbitrator or Board shall be a final administrative action. There shall be no right of appeal to the Board of Supervisors, but appeal may be to court pursuant to Code of Civil Procedure Sections 1094.5 and 1094.6.

Such findings and decisions shall be public records, and may be certified by the Director, or by the Clerk of the Board of Supervisors. Each dec ision shall set forth a Notice as required by California Government Code Section 1094.6. The decision shall become effective upon mailing to the party unless otherwise indicated.

19. PRIORITIES
.

All petitions for hearings shall be heard in order of date filed.

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20. RENT ADJUSTMENT REGULATIONS.

For purposes of determining allowable rent adjustments, except those specified in Section 9 A for permissive annual adjustment and in Section 9 D for capital improvements, the principles set forth in this section shall be us ed. The Arbitrator or Board may consider all relevant factors including, but not limited to: increases or decreases in operating and maintenance expenses, the extent and cost of utilities paid by the park owner, necessary and reasonable capital improvements of the park as distinguished from normal repair, replacement and maintenance, increases or decreases in amenities, equipment, insurance, services, substantial deterioration of the park other than as a result of ordinary wear and tear, failure on the part of the park owner to provide timely and/or adequate maintenance and repair, federal and state income tax benefits, t he speculative nature of the in vestment, whether or not the property was acquired or is held as a long term or short term investment, the owner's rate of return on investment, the owner’s method of financing and prudent use and need thereof, the owner's current and base year Net Operating Income (N.O.I.) as inflated to date by current CPI and any other factors deemed relevant by the Arbitrator or Board, in providing the owner a fair return.

The fact that a park is old shall not, of itself, be indicative that maintenance has deteriorated. The Arbitrator or Board shall distinguish between normal deterioration and obsolescence of the park due to age and failure to adequately maintain.

In the event any such claim or claims of failure to adequately maintain are proven, the Arbitrator or Board may take one or more of the following actions:

A. Deny any rental increase;
B. Offset any allowable rental increase by an amount that is adequate to reflect the degree of failure to adequately maintain.

C. Condition any allowable rental increase upon a re mediation of the failure to maintain by the park owner. In this regar d the Arbitrator or Board may freeze rents at the pre- increase level until such time as the park owner has come into compliance with the Arbitrator’s or Board’s decision.

D. The Arbitrator or Board may recess the hearing for a period not to exceed 90 days to allow the park owner to correct the condition or conditions of inadequate maintenance.

E. The Arbitrator or B oard may combine any two or more of the above listed actions and/or may take any other action or actions that it deems necessary to correct the problem of inadequate maintenance.

21. NET OPERATING INCOME
.

Net Operating Income (NOI) shall be gross income less allowable operating expenses.

22. GROSS INCOME .

Gross Income equals:

A. Gross rents, computed as gross rental income at 100% paid occupancy, plus B. Interest from rental deposits, unless dire ctly paid by the landlord to the tenants.

C. Income from miscellaneous sources, includi ng, but not limited to, laundry facilities, vending machines, amusement devices, cleaning fees or services, garage and parking fees, plus
D. All other income or consideration receiv ed or receivable for or in connection with the use or occupancy of rental units,
E. Minus uncollected rents due to vacancy and bad debts to the extent that the same are beyond the landlord’s control.

Item Title: 12.1
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Item Page Number: 15
Menifee Mayor and City Council April 20, 2022

Ord. 760 - Page 14

23. ALLOWABLE OPERATING EXPENSES .

Operating expenses shall include but not be limited to the following:

A. Real property taxes.

B. Utility costs . Utility costs are for natural gas or liquid propane gas, electricity, water, cable television, garbage or refuse service, and sewer service, unless billed separately to and paid by the park residents in which case the park owner may not deduct such costs. It is assumed that charges for utility services b illed to the tenant separately include an adequate reserve amount to repair and upgrade meters, lines and equipment and the park owner shall have the burden of showing by clear and convincing evidence that any additional expense is necessary to cover such repairs or upgrade.

C. Management fees actually paid if management services are contracted for. If all or a portion of management services are performed by the landlord, management fees shall include the reasonable value for such landlord performed services. Management fees greater than five percent (5%) of gross income are presumed to be unreasonable.

Such presumption may be rebutted.

D. Other reasonable management ex penses, including, but not limited to, necessary and reasonable advertising, accounting and insurance.

E. Normal repair and maintenance expenses, includi ng, but not limited to, painting, normal cleaning, fumigation, landscaping, and repai r of all standard services, including electrical, plumbing, carpentry, furnished appliances, drapes, carpets, and furniture.

F. Owner-performed labor, which shall be compens ated at the following hourly rates upon documentation of the date, time, and nature of the work performed:

1. At the general prevailing ra te of per diem wages for the Riverside or Indio area, (whichever may be applicable) for the s pecific type of work performed, as determined and published by the Director of the Department of Industrial Relations of the State of California pursuant to Section 1770 et seq of the Labor Code of the State of California.

2. If no such general prevailing rate has been determined and published, then a cost per hour for general maintenance and a cost per hour for skilled labor as established by Riverside County Department of Economic Development.

3. Notwithstanding the above, a landlor d may receive greater or lesser compensation for self-labor if the landlord proves by clear and convincing evidence that the amounts se t forth above are substantially unfair in a given case.

4. Owner performed labor in excess of 5% of Gross Income shall not be allowed unless the landlord proves by clear and convincing evidence that such excess labor expenses resulted in proportionately greater services fo r the benefit of tenants.

G. License and registration fees required by law to the extent same are not otherwise paid by tenants.

H. The reasonable cost of the capital impr ovement including reasonable financing costs, plus two percent (2%) over the prime rate at Bank of America in effect at the time of the assessment computed in accordance with any useful life table utilized by the Internal Revenue Service.

I. Reasonable attorneys fees and costs incurred as normal and reasonable costs of doing business, including, but not limited to, good faith attempts to recover rents owing and good faith unlawful detainer actions not in der ogation of applicable law, to the extent same are not recovered from tenants.

Item Title: 12.1
Mobile Home Rent Stabilization
Item Page Number: 16
Menifee Mayor and City Council April 20, 2022

Ord. 760 - Page 15

24. OPERATING EXPENSES NOT ALLOWABLE.

Operating expenses shall not include the following:

A. Avoidable, unreasonable or unnecessary expenses;

1. All expenses allowed must be reasonable. To the extent that the Arbitrator or Board finds any expense(s) to be unreasonab le, the Arbitrator or Board shall adjust such expense(s).

B. Mortgage principal and interest payments;

1. In refinancing, increased interest shall be permitted to be considered as an operating expense only where the park owner can show that the refinancing was reasonable and consistent with prudent business practices under the circumstances.

C. Lease purchase payments; and rent or lease payments to park owner’s lesser; except that increases in such payments in any year may be allowed if found by the Arbitrator or Board to be reasonable and c onsistent with prudent busi ness practice under the circumstances.

D. Excessive costs of maintenance caused by delaying normal maintenance; E. A cost that results because the loss is uni nsured where prudent business practice would expect insurance coverage or the cost for that portion of a loss above a normal deductible, if underinsured, shall not be included as an operating expense.

F. Depreciation of the real property;
G. Any expenses for which the landlord has been reimbursed by any security deposit, insurance settlement, judgment for damages, settlement, or any other method.

H. Attorneys fees and other costs incurred for preparation and presentation of proceedings before the Arbitrator or Board, or in connection with civil actions or proceedings against the Arbitrator or Board.

I. Penalties, fees or interest assessed or awarded for violation of this or any other statute;

25. PRESUMPTION OF FAIR BASE YEAR NET OPERATING INCOME .

Except as provided in below, it shall be presumed that the Ne t Operating Income produced by a park owner during the base year, provided a fair return on property. Owners shall be entitled to maintain and increase their Ne t Operating Income from year to year in accordance with Sections 8B and 9B.

26. REBUTTING THE PRESUMPTION
.

It may be determined that the base year net operating income yielded other than a fair return on property, in which case, the base year Net operating Income may be adjusted. In order to make such a determination, the Arbitrator or Board or its designee must make at least one of the following findings:

A. The owner's operating and maintenance expenses in the base year were unusually high or low in comparison to other years. In such instances, adjustments may be made in calculating such expenses so the base year operating expenses reflect average expenses for the property over a reasonable per iod of time. The Ar bitrator or Board shall consider the following factors:

1. The owners made substantial capital im provements during the base year which were not reflected in the rent levels on the base date.

2. Substantial repairs were made due to damage caused by natural disaster, vandalism or other cause which management has taken appropriate action to reduce.

3. Maintenance and repair were below a ccepted standards so as to cause Item Title: 12.1
Mobile Home Rent Stabilization
Item Page Number: 17
Menifee Mayor and City Council April 20, 2022

Ord. 760 - Page 16
significant deterioration in the quality of housing services.

4. Other expenses were unreasonably high or low notwithstanding the following of prudent business practices by management.

B. The rental rates in the base year were disproportionate due to enumerated factors below. In such instances, adjustments ma y be made in calculating gross rents consistent with the purpose of this Ordinance.

1. The rental rates in the base year were substantially higher or lower than in preceding months by reason of premiums being charged or rebates being given for reasons unique to particular units or limited to the period determining the base rent.

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

3. The rental rates in the base year were exceptionally high or low due to other factors which would cause the application of the base year net operating income to result in gross inequity to either the owner or tenant.

27. DETERMINATION OF BASE YEAR NET OPERATING INCOME.

A. To determine the Net Operating Income dur ing the base year, there shall be deducted from the annualized gross inco me being realized in 1991, a sum equal to the actual operating expenses for calendar year 1991, unless the owner demonstrates to the satisfaction of the Arbitrator or Board that the use of some other consecutive 12-month period is justified by reasons consistent with the purposes of this section.

B. In the event the owner did not own the subject property during the base year, the operating expenses for 1991 shall be determi ned by one of the following methods, whichever the Arbitrator or Board determines to be more reliable in the particular case:

1. The previous owner’s actual operating ex penses as defined in Section 23 if such figures were available, or

2. Actual operating expenses for the first ca lendar year of new ownership, adjusted to 1991.

C. Park owners shall be entitled to maintain and increase their net operating income from year to year in accordance with the guidelines set forth in this Ordinance. It shall further be rebuttably presumed that where the net operating income is less than fifty percent (50%) of gross income in the base year, the park owner was receiving less than a just and reasonable return on the mobile home park.

28. DETERMINATION OF CURRENT YEAR NET OPERATING INCOME.

To determine the current year net operating income there shall be deducted from the annualized gross income, determined by analyzing the monthly rents in effect at the time of filing of a petition, a sum equal to the actual operating expens es for the last calendar year (unless the owner demonstrates to the satisfaction of the Arbitrator or Board or its designee that the use of some other consecutive 12-month period is justified by reasons consistent with the purposes of this section).

29. SCHEDULE OF INCREASES IN OPERATING EXPENSES
.

Where scheduling of rental increases, or ot her calculations, require projections of income and expenses, it shall be assumed that operating expenses, ex clusive of property taxes, and management expenses, increase at 5% per year, that property taxes increase at 2% per year, and that management expenses constitute 5% of gross income, provided, however, that if actual increases are greater or less than those listed in this section, the actual Item Title: 12.1
Mobile Home Rent Stabilization
Item Page Number: 18
Menifee Mayor and City Council April 20, 2022

Ord. 760 - Page 17
increases shown according to proof shall be the
increases applicable.

30. DISCRETIONARY CONSIDERATIONS
.

While the Net Operating Income formula should operate to guarantee a park owner a fair return on the park, the Arbitrator, Board or Hearing Officer considering a request for rent increases shall consider all relevant factors presented in making a determination, as set forth in this Ordinance.

31. INCREASES PENDING HEARING
.

Rent increases may be collected in full by the park owner until such time as ordered otherwise by a final decision of the Arbitrat or or the Board or unless agreed upon by the residents and the park owner.

32. RENT ADJUSTMENTS FOR REDUCTION IN UTILITY SERVICES
.

A. If a mobile home park provides in the ren t, without separate charge, utilities or similar services (including, but not limited to, natural gas, electricity, water, sewer, trash, and/or cable television) and converts to separat e charge for such service by separate metering, separate charge or other lawful means of transferring to the tenant the obligation for payment for such services, the cost savings shall be passed through to tenants by a rent adjustment equal to the act ual cost to the park of such transferred utility or similar service (less common area usage)based on costs for the twelve (12) months period prior to notice to the t enants of the change. Provided compliance with this section occurs, provisions for mediat ion and/or hearing shall not apply. It is the intent of this Section for those rental agreements entered into on or after January 1, 1991, to be consistent with the provisions of Civil Code Section 798.41 as adopted by Chapter 1013, Section 2 of the Statutes of 1990.

B. For purposes of this section, in determining cost savings to be passed on to tenants in the form of decreased rent, the cost of installation of separate utility meters, or similar costs incurred by the owner to shift the ob ligation for payment of utility costs to the tenants shall not be considered. However, this shall not be construed to prohibit or prevent the consideration of inclusion of such costs as an increased operating expense at mediation or arbitration.

33. QUANTUM OF PROOF AND BURDEN OF PROOF .

The decision of the Arbitrator, the Board, the Director, or the Hearing Officer must be supported by the evidence submi tted at the hearing. The pe titioning party shall have the burden of going forward with the evidence and the burden of persuasion by a preponderance of the evidence.

34. REMEDIES FOR VIOLATION
.

A. Civil Remedies - Any person who demands, accepts, or retains any payment in violation of any provision of this Ordinance shall be liable in a civil action to the person from whom such payment is demanded, accepted, or retained for damages in the sum of three (3) times the amount by which the payment or payments demanded, accepted or retained exceed the maximum rent which could lawfully be demanded, accepted, or retained, together with reasonable attorney 's fees and costs as determined by the Court.

B. Criminal Remedies - It shall be unlawful for any owner to willfully and knowingly adjust any rent in an amount in excess of that allowed under this Ordinance or by order of the Item Title: 12.1
Mobile Home Rent Stabilization
Item Page Number: 19
Menifee Mayor and City Council April 20, 2022

Ord. 760 - Page 18
Arbitrator or Mobile Home Board. Any owner who willfully and knowingly violates any of the provisions of this Ordinance or the orders of the Arbitrator or Mobile Home Board shall be guilty of a misdemeanor punishable by a fine not exceeding $1,000 or six months in jail or both.

C. Injunctive and Other Civil Relief - The Arbitrator, the M obile Home Board, the Director, the County, and/ or the Tenants and Owners may seek relief from the appropriate Court within the jurisdiction within which the rental unit is located to enforce any provision of this Ordinance or its implementing regulations or to restrain or enjoin any violation of this Ordinance and of the rules, regulations, orders and decisions of the Arbitrator, Mobile Home Board or Board of Supervisors.

D. Non-waiver of Rights - Any waiver or purported waiver by a tenant or prospective tenant of rights granted under this Ordinance prior to the time when such rights may be exercised, whether oral or written, shall be void as contrary to public policy.

35. PERIODIC REVIEW OF ORDINANCE .

A. The Board of Supervisors shall review t he provisions of this Ordinance following a report by the Director one year following the date of adoption thereof, and at any other time deemed appropriate, in order to consider the following:

1. Whether this Ordinance continues to be necessary to protect the public health, safety, and welfare.

2. Whether the implementati on of the provisions of this Ordinance have been adequate; and

3. Whether the provisions of this Or dinance should be amended to provide more effective regulations or to avoid unnecessary hardship.

36. SEVERABILITY .

If any provisions of this Ordinance or application thereof to any person or circumstances is held to be invalid, this invalidity shall not a ffect other applications of this Ordinance which can be given effect without the invalid provision or application, and to this end, the provisions of this Ordinance are declared to be severable.

37. ORDINANCE TO BE LIBERALLY CONSTRUED
.

This Ordinance shall be liberally construed to achieve the purposes of this Ordinance and to preserve its validity.

38. PROSPECTIVE EFFECT
.

This Ordinance is intended to operate prospectively from its effective date, and anything which occurred prior to the effective date of this Ordinance which was otherwise lawful shall not be affected. Any agreement entered into between a park owner and park residents resolving a dispute which arose under Ordinance 606 and its subsequent amendments shall continue to be effective and enforceable between the parties.

39. EFFECTIVE DATE.

This Ordinance is effective 30 days after adoption.

40. OPERATIVE DATE.

This Ordinance shall become operative on July 1, 1996.

41. NO REPEAL OF ORDINANCE NO. 606 .

Ordinance 606 is not repealed by adoption of this Ordinance. The Board of Supervisors on or before July 1, 1996 shall consider the need to repeal Ordinance No. 606.

Item Title: 12.1
Mobile Home Rent Stabilization
Item Page Number: 20
Menifee Mayor and City Council April 20, 2022

Ord. 760 - Page 19

Adopted: 760 Item 3.2 of 02/20/1996 (Eff: 03/20/1996) Amended: 760.1 Item 3.5 of 09/10/1996 (Eff: 10/10/1996) 760.2 Item 7.4 of 09/17/1996 (Eff: 10/17/1996)
Item Title: 12.1
Mobile Home Rent Stabilization
Item Page Number: 21
Menifee Mayor and City Council April 20, 2022

PETITION FOR HEARING

RIVERSIDE MOBILE HOME RENT BOARD
4080 Lemon Street
Riverside, CA 92501

Please Check One:

Home Owner:
 Individual ($1.00*)
 Group ($1.00* per space)
(*Filing Fee)

If more than one space affected, at least 30% of spaces similarly affected must sign petition attached.

Park Owner:
 Landlord ($1.00* per space)
 Hardship Rent Increase ($1.00* per space)
(*Filing Fee)

Number of Spaces Affected ___________________

Applicant: ________________________________________ Telephone: __________________________

Address: ___________________________________________ City: _________________ Zip: __________

_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ Summary of Petition (Please attach additional sheets if needed):

Signature: _________________________________________ Date: _________________ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ For Office Use
Received by: ______________________________________ Date: ___________________ Fee Paid: $________________________________________ Receipt Number: __________ Item Title: 12.1
Mobile Home Rent Stabilization
Item Page Number: 22
Menifee Mayor and City Council April 20, 2022

RESIDENT’S PETITION TO PROTEST RENT INCREASE
PURSUANT TO COUNTY ORDINANCE 760

We, the undersigned residents of _________________________________ do hereby petition, pursuant to procedures as set forth in County Ordinance 760.

The proposed space rent increase is $_____________, or ( _____________%) per month/year, effective _______________. The other rent related dispute involves: (Provide typed or printed attachments, if needed) ____________________________________________________________________________________________________________ ____________________________________________________________________________________________________________ ____________________________________________________________________________________________________________ ____________________________________________________________________________________________________________

At lease 30% of the tenants similarly affected must sign below (one signature per space). If additional signatures are required, you may add signatures to the back of this petition.

NAME: _____________________________________________ Phone #: ( )______________________________

MAILING ADDRESS: ___________________________________________________________________________

DATE PRINT NAME SIGNATURE SPACE #

1. __________ ____________________________________ _________________________________ ___________

2. __________ ____________________________________ _________________________________ ___________

3. __________ ____________________________________ _________________________________ ___________

4. __________ ____________________________________ _________________________________ ___________

5. __________ ____________________________________ _________________________________ ___________

6. __________ ____________________________________ _________________________________ ___________

7. __________ ____________________________________ _________________________________ ___________

8. __________ ____________________________________ _________________________________ ___________

9. __________ ____________________________________ _________________________________ ___________

10. __________ ____________________________________ _________________________________ ___________

11. __________ ____________________________________ _________________________________ ___________

12. __________ ____________________________________ _________________________________ ___________

13. __________ ____________________________________ _________________________________ ___________

14. __________ ____________________________________ _________________________________ ___________

15. __________ ____________________________________ _________________________________ ___________

16. __________ ____________________________________ _________________________________ ___________

17. __________ ____________________________________ _________________________________ ___________

18. __________ ____________________________________ _________________________________ ___________

19. __________ ____________________________________ _________________________________ ___________

20. __________ ____________________________________ _________________________________ ___________

I declare under penalty of perjury that all signatures on this petition were made in my presence.

Dated: _______________________ Signed: ___________________________________________ Item Title: 12.1
Mobile Home Rent Stabilization
Item Page Number: 23
Menifee Mayor and City Council April 20, 2022

RENT ADJUSTMENT APPLICATION

RIVERSIDE MOBILE HOME RENT BOARD
4080 Lemon Street
Riverside, CA 92501

Applicant: ____________________________________

Address: ____________________________________

____________________________________

Contact: ____________________________________

Phone: ____________________________________

Date of Last Adjustment: _______________________

_____________________________________________
Signature Date

_____________________________________________
Approved By Date

Comments:

______________________________________________

______________________________________________

______________________________________________

______________________________________________

Permissive
Adjustment
%
Space
No.

Resident’s Name
& Address
(Other than Park)
Proposed
Monthly Rent
Annual
Adjustment

Item Title: 12.1 Mobile Home Rent Stabilization
Item Page Number: 24
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Exhibit A

RIVERSIDE MOBILE HOME RENT BOARD

PETITION FOR HARDSHIP RENT INCREASE

All information requested on this form must be provided. Failure to answer any question may result in dismissal of the petition by the Board

Name of Applicant: ____________________________________________________________________________________________________ (If corporation, indicate also name of person to contact concerning this petition)

Title of Applicant: ___________________________________________ Telephone No. (_________)____________________________ ( A r e a C o d e )

Business Address: _____________________________________________________________________________________________________

Name & Address of Rental Property: _____________________________________________________________________________________

L a s t C a l e n d a r

I. Gross Income Base Year Year

A. Gross Rents (computed as Gross Rental Income at 100% paid occ.) $_________ $_________ (Furnished copy of base rent roll and current rent role for all spaces if not on file with Board

B. Interest from Deposits (unless paid directly to te nants) $_________ $_________

C. Income from: Base Year Last Calendar Year

1. Laundry Facilities $___________ $___________

2. Vending Machines $___________ $___________

3. Cleaning Fees $___________ $___________

4. Garage & Parking Fees $___________ $___________

5. Other (Specify): ____________________________ $___________ $___________

____________________________________________ $___________ $___________

TOTAL $_________ $_________

Item Title: 12.1 Mobile Home Rent Stabilization
Item Page Number: 25
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Last Calendar
Base Year Year

D. Add Lines A, B, and C $_________ $_________

E. Uncollected Rents Due to Bad Debts and Vacancies $_________ $_________

F. Gross Income (Subtract Line E from Line D) $______ ___ $_________

II. Operating Expenses
L a s t C a l e n d a r
B a s e Y e a r Year

G. Management Expenses

1. Accounting $_________ $_________

2. Advertising $_________ $_________

3. Insurance Premiums $_________ $_________

4. Legal Fees $______ ___ $_________

5. Value of Landlord Performed Services $_________ $_________

6. Management Fees $_________ $_________

7. Office Supplies $______ ___ $_________

8. Salaries and Payroll Taxes $_________ $_________

9. Other (Specify): ___________________________ $_________ $_________

_________________________________________ $_________ $_________

_________________________________________ $_________ $_________

_________________________________________ $_________ $_________

TOTAL $_________ $_________

Item Title: 12.1 Mobile Home Rent Stabilization
Item Page Number: 26
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Last Calendar
B a s e Y e a r Year

II. Operating Expenses (Con’t) Last Calendar
Base Year Year
H. Repair and Maintenance Costs

1. Appliances $_________ $_________

2. Cleaning $_________ $_________

3. Fumigation $_________ $_________

4. Furniture $_________ $_________

5. Landscaping $_________ $_________

6. Painting $_________ $_________

7. Supplies $_________ $_________

8. Other (Specify): ________________________________ $_________ $_________

______________________________________________ $_________ $_________

______________________________________________

TOTAL $_________ $_________

$_________ $_________
I. Real Property Taxes:

J. License and Registration Fees Not
Otherwise Paid by Tenants (Specify)

1. ___________________________________________ $_________ $_________

2. ___________________________________________ $_________ $_________

3. ___________________________________________ $_________ $_________

TOTAL $_________ $_________

Item Title: 12.1 Mobile Home Rent Stabilization
Item Page Number: 27
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II. Operating Expenses (Con’t) Last Calendar B a s e Y e a r Year
L a s t C a l e n d a r
B a s e Y e a r Year
K. Utility Costs:

1. Electricity $_________ $_________

2. Gas $_________ $_________

3. Telephone $_________ $_________

4. Water $_________ $_________

5. Other (Specify): ________________________________ $_________ $_________

______________________________________________ $_________ $_________

______________________________________________

TOTAL $_________ $_________

L. Amortized Capital Expenses:

1. ____________________________________________ $_________ $_________

2. ____________________________________________ $_________ $_________

3. ____________________________________________ $_________ $_________

4. ____________________________________________ $_________ $_________

5. ____________________________________________ $_________ $_________

6. ____________________________________________ $_________ $_________

7. ____________________________________________ $_________ $_________

8. ____________________________________________ $_________ $_________

Item Title: 12.1 Mobile Home Rent Stabilization
Item Page Number: 28
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Last Calendar
B a s e Y e a r Year
II. Operating Expenses (Con’t)
Last Calendar
Base Year Year
L. Amortized Capital Expenses (Con’t)

9. ___________________________________________ $_________ $_________

10. ___________________________________________ $_________ $_________

TOTAL $_________ $_________

M. Enter Total From Line F (Gross Income) $_________ $_________

N. Total Expenses (Add Lin es G, H, I, J, K, and L) $_________ $_________

O. Net Operating Income (Subtract Line N from Line M) $___ ______ $_________

III. Do you consider any of the amounts entered above on Lin es A through E or G through L to be unusually high or low:

Yes___________________ No__________________ If yes, explain below:

Line
Item Year Explanation ______________________________________________________

Item Title: 12.1 Mobile Home Rent Stabilization
Item Page Number: 29
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IV. List below the names and address of all te nants of units affected by this petition. Attach additional sheets if necessary.

V. State briefly any additional reason( s) for seeking a hardship rent increase:

VI. Have available, at the hearing, substantia tion of all expenses claimed in the petition.

I declare under penalty of perjury that the statements contained herein are true and correct.

Signature:_____________________________________________________________________ Date:_________________________

Item Title: 12.1 Mobile Home Rent Stabilization
Item Page Number: 30
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