CITY OF SEBASTOPOL
CITY COUNCIL
AGENDA ITEM
Meeting Date: April 5, 2022
To: Honorable Mayor and City Councilmembers
From: City Administration
Subject: Renewal of Agreement between the City of Sebastopol and the Sonoma County Community Development Commission for Administration of Sebastopol Mobilehome Rent Stabilization Program (July 1, 2022 through June 30, 2025) Recommendation: That the Mayor and City Council Approve and Renew the Agreement and Authorize the City Manager to Sign the Agreement
Funding: Currently Budgeted: _______ Yes ___X______ No _____ N/A Net General Fund Cost:
Amount:
Account Code/Costs authorized in City Approved Budget: __AK__(verified by Administrative Services Department)
INTRODUCTION:
This item is for City Council Approval for Renewal of Agreement between the City of Sebastopol and the Sonoma County Community Development Commission for Administration of Sebastopol Mobilehome Rent Stabilization Program (July 1, 2022 through June 30, 2025) and authorize the City Manager to sign the Agreement.
BACKGROUND:
Due to staffing issues and the specialized nature of this work, the City has been contracting with the Sonoma County Community Development Commission for this purpose of administering the City of Sebastopol’s Mobilehome Rent Stabilization Program and has been satisfied with the service provided to the City and its residents. The current agreement is set to expire on June 30, 2022.
DISCUSSION:
The City has adopted a rent stabilization ordinance and program for mobilehome parks within the City, modeled upon the program adopted by the Sonoma County Board of Supervisors. The City has previously found it both economical and efficient to contract the administration of the City’s ordinance and program with the Sonoma County Community Development Commission. The Commission has significant experience and adequate staffing that the City could not mirror without significant additional resources being required of the City.
The services that the Commission will provide under the renewal of this agreement include:
1. Providing day to day responses to citizen inquiries regarding the City Ordinance
2. Providing administrative services to process arbitration petitions
3. Locating and retaining arbitrators for administrative hearings under the City Ordinance, who have certified to the Commission they meet the Commission’s selection criteria
4. Arranging location for administrative hearings and other meetings as required by the City Ordinance Agenda Item Number: 6 Agenda Item Number: 6
City Council Meeting Packet of: April 5, 2022
In approving this agreement renewal, the City understands and agrees that the Sonoma County Community Development Commission and its staff may be required to apply and interpret the rent stabilization ordinance of the City in connection with such services, and the City agrees it will promptly provide guidance to the Commission regarding issues arising under the City ordinance upon request.
This agreement provides that the Commission will be paid at the rate of $85.00 per hour for services rendered in the administration of the City mobilehome rent stabilization ordinance. Annual services are anticipated not to exceed one hundred eight (108) hours per year. It is anticipated that the annual services will not exceed one hundred and eight (108) hours per year. Should services be required beyond the one hundred and eight (108) hours, additional negotiations will be required and a separate modification to this contract will be required.
Furthermore, the Commission will be paid at the rate of $200 per hour for County Counsel services provided to City in counseling Commission staff regarding the administration of City's rent stabilization program. If services necessary to administer said program appear to exceed this estimate, City may elect to involve its City Attorney in place of Commission Counsel. Additional legal services in excess of Ninety (90) hours per year must be negotiated and the subject matter of a separate written modification of this contract.
The costs of the program are consistent with the past costs charged by the Commission. These were previously paid from the low income housing allocation for the former Sebastopol Community Development Agency, but with the elimination of the Agency, the costs are now paid from the General Fund and budgeted each year in the City Manager’s departmental budget. Costs for the services have ranged anywhere from $600.00 to $4000.00 dependent upon the issues for that specific year. In the last three years, the average has been about $350.
The alternative to the City would be to administer the program with existing staff. Given our staffing levels, and the lack of familiarity with the management of this specialized program, staff is confident the costs would be higher to the City to administer the program.
If approved, this agreement shall commence July 1, 2022 and terminate on June 30, 2025.
CITY COUNCIL AND/OR GENERAL PLAN GOALS:
Goal 5 - Provide Open and Responsive Municipal Government Leadership PUBLIC COMMENT:
As of the writing of this staff report, the City has not received any public comment. However, if staff receives public comment from interested parties following the publication and distribution of this staff report such comments will be provided to the City Council as supplemental materials before or at the meeting. In addition, public comments may be offered during the public comment portion of this item.
PUBLIC NOTICE:
This item was noticed in accordance with the Ralph M. Brown Act and was available for public viewing and review at least 72 hours prior to schedule meeting date.
FISCAL IMPACT:
There is no fiscal impact with this item tonight.
RECOMMENDATION: That the City Council approve the Renewal of Agreement between the City of Sebastopol and the Sonoma County Community Development Commission for Administration of Sebastopol Mobilehome Agenda Item Number: 6
Agenda Item Number: 6
City Council Meeting Packet of: April 5, 2022
Rent Stabilization Program (July 1, 2022 through June 30, 2025) and authorize the City Manager to sign the Agreement.
Attachment(s):
Agreement
Ordinance
Agenda Item Number: 6
Agenda Item Number: 6
City Council Meeting Packet of: April 5, 2022
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AGREEMENT
BETWEEN THE CITY OF SEBASTOPOL AND
THE SONOMA COUNTY COMMUNITY DEVELOPMENT COMMISSION
FOR ADMINISTRATION OF SEBASTOPOL MOBILEHOME RENT STABILIZATION PROGRAM
AND HOLD HARMLESS, INDEMNIFICATION AND DEFENSE
AGREEMENT
THIS CONTRACT, made this ____ day of ______ 2022, by and between the Sonoma County Commission Community Development Commission, hereinafter called "Commission," and City of Sebastopol, hereinafter called "City."
WHEREAS, City has adopted a rent stabilization ordinance and program for mobilehome parks within City modeled upon one adopted by the Sonoma County Commission Board of Supervisors; and
WHEREAS, the current agreement between the Commission and City expires on June 30, 2022; and
WHEREAS, City desires to have Commission continue to administer said program within the City boundaries, and Commission has expertise and staff to continue such services.
NOW, THEREFORE, in consideration of the mutual covenants contained herein, the parties hereto agree as follows:
1. SCOPE OF SERVICE: Commission shall administer the mobilehome rent stabilization ordinance of City (attached hereto and incorporated herein by reference as Exhibit "A") in a like manner to the comparable Sonoma County Mobilehome Park Space Rent Stabilization Ordinance.
Said administrative services shall include (1) providing day-to-day responses to citizen inquiries regarding the City ordinance; (2) providing administrative services to process arbitration petitions; (3) locating and retaining arbitrators for administrative hearings under the City ordinance; and (4) arranging a location for administrative hearings and other meetings required by the City ordinance.
The City understands and agrees that the Commission and its staff may be required to apply and interpret the rent stabilization ordinance of City in connection with such services, and hereby agrees to be bound by the judgment of Commission staff on such matters of interpretation and application. If requested by Commission, City staff will promptly provide guidance to Commission regarding issues arising under the City ordinance; however, nothing in this Agreement shall require Commission to request such guidance. Commission shall not be required to make determinations under the City ordinance with respect to the timeliness of petitions, the adequacy of financial information provided by parties, and similar issues if such issues are disputed, it being understood and agreed that such questions may be determined by the arbitrator. Nothing in this Agreement shall require Commission staff to take any action it deems, in its sole judgment, unlawful or likely to result in liability to Commission.
2. INDEMNIFICATION AND DEFENSE: City acknowledges that Commission’s performance of services under this Agreement may give rise to claims and litigation against Agenda Item Number: 6
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Commission or its employees, officers, or agents by mobilehome park owners or residents, and that such claims and litigation may, for tactical or other reasons, allege negligence or intentional misconduct on the part of Commission or its employees, officers, or agents. Notwithstanding the nature of the claims, liabilities, actions, or litigation asserted or alleged against Commission or its employees, officers, or agents, City agrees to indemnify, defend, and hold harmless Commission, and its agents (including arbitrators retained by Commission under this Agreement), officers, and employees, from and against any and all claims, liabilities, actions, or litigation of any kind whatsoever arising out of or related to Commission’s performance of services under this Agreement, whether or not there is negligence or willful misconduct on the part of Commission, to the maximum extent permitted by law. If there is a possible obligation to indemnify, City’s duty to defend exists regardless of whether it is ultimately determined that there is not a duty to indemnify. Commission shall have the right to select its own legal counsel at the expense of City, subject to City’s approval, which approval shall not be unreasonably withheld.
City understands and acknowledges that the City’s agreement to indemnify and defend Commission against all claims pursuant to this Section 2 was a material inducement for Commission to enter into this Agreement.
3. TERMINATION: Either party hereto may terminate this agreement upon thirty days notice of the intent to terminate this agreement, with service of said notice being made as follows:
COMMISSION:
Dave Kiff, Interim Executive Director
Sonoma County Community Development Commission
1440 Guerneville Road
Santa Rosa CA 95403
CITY:
Larry McLaughlin, City Manager
City of Sebastopol
7120 Bodega Avenue
P. O. Box 1776
Sebastopol, CA 95473
4. Commission will be paid for all services rendered. Commission will be paid at the rate of $85.00 per hour for services rendered in the administration of the City mobilehome rent stabilization ordinance. Annual services are anticipated not to exceed one hundred eight (108) hours per year. Invoices shall be sent to the City periodically. Services in excess of one hundred eight (108) hours must be negotiated and the subject matter of a separate written modification of this contract. Where arbitrators are deemed to be necessary, they shall be paid by Commission and reimbursed by City for actual amount incurred.
5. SERVICES LIMITED TO ADMINISTRATION: The Ordinance policy, findings and/or language adopted by City is solely the responsibility of City. Commission shall not be expected to Agenda Item Number: 6
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defend said policy, findings and/or language or litigate cases which challenge the law's facial validity except as may hereafter be agreed by separate written modification of this contract. Commission shall not be expected to take any affirmative action to enforce the City ordinance or to enforce the terms of any arbitration decision.
6. INCIDENTAL LEGAL SERVICES RELATED TO ADMINISTRATION OF CITY PROGRAM: City shall pay the Commission at the rate of $200 per hour for County Counsel services provided to City in counseling Commission staff regarding the administration of City's rent stabilization program. Commission Counsel shall not be responsible for recommending or suggesting modifications of the language of City's ordinance. City agrees that if requested it will promptly consult with Commission Counsel on any issue relating to the City ordinance, any arbitration proceeding requested under the City ordinance, or any other issue relating to the performance of services by Commission under this Agreement. Annual services from Commission Counsel is not anticipated to exceed Ninety (90) hours per year. If services necessary to administer said program appear to exceed this estimate, City may elect to involve its City Attorney in place of Commission Counsel.
Additional legal services in excess of Ninety (90) hours per year must be negotiated and the subject matter of a separate written modification of this contract.
7. NO INTENDED THIRD PARTY BENEFICIARIES: The parties hereto agree and acknowledge that this contract does not provide for any intended third party beneficiaries, and no suit against either party may be based upon such a claim. This agreement shall be enforceable only by the parties hereto.
8. TERM AND RENEWAL: The term of the agreement shall commence July 1, 2022 and end June 30, 2025. The rates under section 4 and 6 may be amended annually effective July 1st to reflect the actual cost to Commission of providing services.
9. RECORDS: Except for materials that may be subject to the attorney-client privilege, records maintained by the Commission in the administration of City's rent stabilization program are City's. All such documents shall be returned to City upon the expiration of this agreement.
10. AMENDMENTS TO CITY RENT STABILIZATION ORDINANCE: Any and all changes or proposed changes to the City rent stabilization ordinance shall be promptly communicated to the mobilehome specialist at the Commission with sufficient notice to accommodate administrative adjustments that may become necessary to implement the change or changes in the City ordinance.
11. MERGER: This is intended both as the final expression of the agreement between the parties with respect to the included terms, and as a complete and exclusive statement of the terms of agreement, pursuant to Code of Civil Procedure Section 1856. No modification of this agreement shall be effective unless and until such modification is evidenced by a writing signed by both parties.
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IN WITNESS WHEREOF THE PARTIES HAVE CAUSED THIS INSTRUMENT TO BE DULY EXECUTED.
Date:______________________ CITY OF SEBASTOPOL:
By:_______________________________________
City Manager
Dated:_______________________ COMMISSION:
By:_______________________________________
Executive Director
Dated:_______________________ APPROVED AS TO FORM:
By:________________________________________
County Counsel
Agenda Item Number: 6
Agenda Item Number: 6
City Council Meeting Packet of: April 5, 2022
Chapter 9.28
MOBILE HOME RENT STABILIZATION
Sections:
9.28.010 Findings and Purpose
9.28.020 Additional Findings and Purpose
9.28.030 Definitions
9.28.040 Base Rent-Initial Calculation
9.28.050 Residential Rent Increase
Limitations
9.28.060 Information to Be Supplied
Tenants and Tenants-to-Be
9.28.070 The Rent Dispute Resolution
Process
9.28.080 Rights of a “Tenant-To-Be”
9.28.090 Subpoena Power
9.28.100 Consolidation of Petitions
9.28.110 Standards of Review
9.28.120 Net Operating Income
9.28.130 Obligations of the Parties
9.28.140 Tenant’s Right of Refusal
9.28.150 Retaliatory Acts: Tenant’s Right
to Organize
9.28.160 Solicitation of Any Petitions By
the Park Owners are Without
Force or Legal Effect Within
County’s Program
9.28.170 Fees
9.28.180 Exemption From Fees
9.28.190 Non-waiverability
9.28.200 Penalties and Remedies
9.28.210 Review By The City Council
9.28.220 Severability
9.28.230 Vacancy Control: Establishment
of New Base Rent
9.28.240 When Recreation Vehicle Space
Tenants Are to Be Treated as
“Affected Tenants”
9.28.250 Severability
9.28.260 Legal Challenge
9.28.010 Findings And Purpose
(a) In 1985, the Sonoma County Board of
Supervisors recognized that a serious problem of
rapidly increasing mobile home park space rents
existed in the unincorporated areas of Sonoma
County. In 1986, the Board retained an experienced
consultant, Connerly & Associates, Inc., to conduct a
market survey of mobile home parks and mobile
home park residents in the County.
(b) In January, 1987, Connerly & Associates,
Inc., submitted to the Board a written report detailing their findings, which were as follows:
(1) The majority of mobile homes in the County
are located in rented spaces in mobile home parks.
(2) In the unincorporated area of the County,
there are 75 mobile home parks containing 3,659
spaces (1986).
(3) Mobile homes in mobile home parks provide
an important alternative form of housing for a
substantial number of County residents.
(4) The majority of mobile home park residents
are age 65 or older.
(5) The median income of mobile home park
residents in unincorporated County areas is
$14,000/year, which is defined by the U.S.
Department of Housing and Urban Development as
“lower” income (in 1986).
(6) In the unincorporated County areas, about
43% of mobile home park residents are defined as
“very low” income recipients according to the HUD
definition of that term (in 1986).
(7) Seventy percent (70%) of mobile home park
resident households have at least one retired member
whose primary source of income is Social Security
payments.
(8) During the past three (3) years, median
mobile home park space rents have increased by
18.1%.
(9) A majority of mobile home park residents in
the County pay more than 25% of their income for
housing.
(10) A large majority of mobile home park
residents own the mobile homes which they occupy
and many of these residents have substantial loan
payments to meet in addition to rent payments.
(10) The median estimates sales value of a
mobile home in a mobile home park exceeds
$30,000.
(12) Many mobile home park residents were born
in Sonoma County or have lived in the County for ten
years or more.
(13) The vacancy rate among mobile home park
spaces is 0.3% (in 1986).
(14) The cost of moving a mobile home is in the
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range of $2,900-$4,000 or more (in 1986)
(c) The Board of Supervisors reviewed the
above conclusions on March 16, 1987, and found
them to be true and correct. In reviewing a new rent
control survey prepared by Connerly and Associates
in early 1992, the Board of Supervisors found a
profound need for continued mobile home space, and,
in special circumstances, recreational vehicle space
rent control. The Board of Supervisors found the
1992 survey, its data and its conclusions to be true
and correct, and took particular note of the following:
(1) Mobile homes and manufactured housing
have represented an affordable form of shelter to
millions of Californians with modest incomes. This
has been especially true for elderly persons living on
fixed Social Security or retirement incomes.
(2) A vacancy rate of 1.2% in 1991 and vacancy
rates of typically one percent or less over
the past five years have given mobile home park
owners a virtual oligopoly where market forces do
not influence space rental pricing.
(3) Typical moving costs for mobile homes
from one mobile home park to another (if vacant
spaces could be located) range from approximately
$5,000 to $9,000 depending upon the size of the
mobile home.
(4) The average annual rent increase proposed
by park owners between 1987 and 1991 was 13.2
percent per annum. Pursuant to the rent stabilization
ordinance, on average less than half the proposed
percentage rent increase was authorized during those
years.
(5) Persons over 65 comprised over half of the
mobile home park population.
(6) Of those survey respondents reporting their
level of income, 43% were very low-income (50% or
less of the median county income) and 27% were
lower-income (50%-80% of the median county
income).
(7) Few residents reported substantial assets
which they could draw upon the meet future housing
expenses. Fewer than half of the respondents had
$30,000 or more in assets (excluding the value of
their mobile homes).
(8) Under the County’s voluntary mediation
program between 1985 and 1987, park owners
proposed annual rent increases averaging 9.6%,
nearly four times the rate of general price increases
according to the CPI for Sonoma County. After
mandatory arbitration was established, and the
current rent control ordinance adopted, requested rent
increases were generally twice or more of the
approved rent increases. Approved rent increases, on
the average, began to mirror the CPI.
(9) The mobile home space rent stabilization
program has succeeded in its broad objectives and
should be expanded to address additional problem
areas.
(10) The Board of Supervisors found that it
would be desirable to include long-term recreational
vehicle space tenants in mobile home parks under the
rent stabilization program. Such tenants in mobile
home parks appear to be similarly situated to mobile
home tenants except for the vehicular character of
their dwellings. Although mobile, recreational
vehicles in mobile home parks are “trapped” by the
low vacancy rate within mobile home parks.
Transient recreational vehicle parks are not amenable
to the type of permanent residency needs of
permanent recreational vehicle space tenants.
(11) The Board of Supervisors found that it
would be desirable to provide prospective mobile
home park tenants with an option to choose between
a long-term lease and a periodic tenancy of less than
one year in duration. The terms offered under typical
long-term leases by some park owners are
excessively long, oppressive, one-sided adhesion
agreements. Such an option furthers a legitimate
governmental objective and is not in conflict with or
preempted by state law.
(12) The Board of Supervisors found that, on
average, several dozen mobile homes are sold or
offered for sale each year in Sonoma County. The
sale of these mobile homes on site subjects mobile
home coach owners to unreasonably suppressed
resale rates due to oppressively high rental
adjustments upon rent de-control. The Board of
Supervisors found that it would be desirable to
provide vacancy control in its rent stabilization
program as hereunder provided.
(13) The need for effective and fair mobile home
park space rent stabilization continues to exist in
Sonoma County in 1993 as it did in 1986.
9.28.020 Additional Findings and Purpose
(a) Based on the aforementioned findings, the
County of Sonoma enacted County Ordinance 4667.
As County Ordinance 4667 forms the basis of this
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ordinance, to the extent necessary and appropriate the
City Council hereby incorporates the consultant’s
study and the County’s findings. In addition, the City
Council finds the following.
Statistically, the Mobile home Park vacancy rate
averages under 1%, with shortage of parks, and no
new ones being built. The cost of moving a mobile
home today is exorbitant and averages over
$6,000.00. Over 50% of the residents are over 65,
Social Security is the primary source of income for
over 70% and many residents are either single or
widowed. This is true affordable housing and needs
to be preserved. There is a great need to prevent
excessive space rent increases which could result in
threats to health and safety and possible economic
eviction.
(b) The purpose of this ordinance is to stabilize
the rate of mobile home park space rental in order to:
(1) Prevent exploitation of the shortage of
vacant mobile home park spaces;
(2) Prevent excessive and unreasonable mobile
home park space rent increases;
(3) Rectify the disparity of bargaining power
which exists between mobile home park residents and
mobile home park owners;
(4) Provide mobile home park owners with a
guaranteed rate of annual space rent increase which
accurately reflects the rate of inflation and increases in their expenses; and
(5) Provide a process for ensuring mobile home
park owners a fair, just, and reasonable rate of return on their parks in cases where the guaranteed annual
space rent increase provided by this ordinance proves
insufficient.
(c) Based upon additional insights, it also seeks to:
(1) Provide continued rent control through
the transfer of a mobile home-on-site (i.e. on the
mobile home pad) to a new mobile home owner to
prevent exploitative rental increases that took place
when vacancy decontrol was tried in earlier versions
of this ordinance.
(2) Provide space rent stabilization
protection to tenants of recreational vehicles
occupying spaces in mobile home parks for more
than nine months in recognition of the special status
conferred by the Recreational Vehicle Park
Occupancy Laws to such long-term residences under
Civil Cod Section 79.45 (b) and their similarity to
mobile home tenancies.
(3) Provide options in the duration of
tenancies to prospective mobile home tenants to
prevent oppressive adhesion contracts from being
imposed upon new park tenants.
9.28.030 Definitions
(a) “Affected Tenants.” Those tenants whose
space is not covered by a valid lease meeting the
requirements as outlined in Sec. 798.17(b) of the
California Civil Code. Such tenants are to be notified
that a space rent increase is to become effective. For
purposes of providing notice of the increase,
providing copies of the rent stabilization ordinance,
and support of a rent arbitration petition, each space
subject to a rental increase shall be deemed to have
only one “affected tenant” for administrative
convenience to the park owners. The reference to
“all affected tenants” will refer to one representative tenant from each space subject to the proposed rental
increase.
(b) “Arbitrator.” A person (1) who is neither a
tenant as that term is defined in this ordinance nor
who has an interest in a mobile home park of a nature
that would require disqualification under the
provisions of the Political Reform Act if the person
were an elected state official and (2) a person whom
the Clerk of the Sebastopol Mobile home Space Rent
Stabilization Program (see (e) below) determines
meets one of the following criteria:
(i) Completion of a Juris Doctor or
equivalent degree from a school of law and
completion of a formal course of training in
arbitration which, in the sole judgment of the Clerk
of the Sebastopol Mobile home Space Rent
Stabilization Program, provides that person with the
knowledge and skills to conduct a space rent dispute
arbitration in a professional and successful manner;
or
(ii) Completion of at least three
arbitration proceedings for a Superior Court or other
public entity that involved issues the Clerk of the
Sebastopol Mobile home Space Rent Stabilization
Program finds similar to those raised in space rent
dispute arbitrations.
(iii) Served as a California Superior or
Municipal Court pro tempore judge.
(c) “Base Rent.” The authorized rent, calculated
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pursuant to the provisions of Section 9.28.050, plus
any rent increase allowed under this ordinance or any
rent adjustment attributable to vacancy decontrol as
provided in Section 9.28.220
(d) Reserved.
(e) “Clerk”. Clerk of the Sebastopol Mobile
Home Space Rent Stabilization Program, who shall
be the City Manager or his or her designee.
(f) “Capital Improvements.” Those
improvements that materially add to the value of the
property and appreciably prolong its useful life or
adapt it to new uses, and which may be amortized
over the useful remaining life of the improvement to
the property. The term “Capital Improvements” does
not include those costs associated with the normal
maintenance and upkeep of facilities and premises
which are reasonably intended to be part of
consideration provided by the mobile home par as
rent. Substantial rehabilitation of the park that is
necessitated as a result of the park owner’s neglect,
permissive waste, deferred maintenance or acts of
God shall not be regarded to be capital improvements
to the extent that they restore facilities and premises to the conditions reasonably bargained for by the
mobile home park tenants. Proposed capital
improvements claims must set forth an amortization
table spreading the cost of the improvement over its
proven useful life. Such costs must be separately
itemized, if approved, on the monthly rent invoice.
Monthly rent shall be decreased for such amortized
capital improvement expenses at the end of the
amortization period. Failure to do so shall be
regarded to be unauthorized increase in rent. Capital
improvements must be for the primary benefit, use
and enjoyment of the tenants of the entire park, and
costs must be allocated over all beneficiaries of the
improvement.
(g) “Consumer Price Index.” Consumer Price
Index for all Urban Consumers San FranciscoOakland Area, published by the U.S. Department of Labor, Bureau of Labor Statistics.
(h) “Housing Service.” A service provided by
the owner related to the use or occupancy of a mobile
home space, which is neither a capital improvement
nor substantial rehabilitation as those terms are
defined herein, including but not limited to, repairs,
replacement, maintenance, painting, lighting, heat,
water, laundry facilities, refuse removal, recreational facilities, parking, security service, and employee
services.
(i) “Mobile home.” A structure designed for
human habitation and for being moved on a street or
highway under permit pursuant to §35790 of the
California Vehicle Code. “Mobile Home” includes a
manufactured home, as defined in section 18007 of
the California Health and Safety Code, and a mobile
home, as defined in §18008 of the California Health
and Safety Code, but does not include a recreational
vehicle, as defined in §799.24 of the California Civil
Code and §18010 of the California Health and Safety
Code, or a commercial coach, as defined in §18001.8
of the California Health and Safety Code except
when such a vehicle has continuously remained
within a mobile home park for a period in excess of
nine months.
(j) “Mobile home Park.” Any area of land
within the City of Sebastopol where two (2) or more
mobile home spaces are rented, or held out for rent,
to accommodate mobile homes used for human
habitation.
(k) “Mobile home Park Owner.” Any owner,
lessor, or sub-lessor of a mobile home park in the
incorporated areas of the City of Sebastopol who
receives or is entitled to receive rent for the use or
occupancy of any mobile home space thereof, and the
representative, agent, or successor of such owner,
lessor, or sub-lessor, and who reports to the Internal
Revenue Service any income received or loss of
income resulting from such ownership or claims any
expenses, credits or deductions because of such
ownership.
(1) “Mobile home Space.” Any site within a
mobile home park located in the City of Sebastopol
intended, designed, or used for the location or
accommodation of a mobile home and any accessory
structures or appurtenances attached thereto or used
in conjunction therewith except (1) sites rented
together and concurrently with a mobile home
provided by the mobile home Park owner and (2)
“new construction” as defined by Civil Code
§798.45. The term “mobile home Space” shall also
include, for purposes of this rent stabilization
ordinance and accompanying fee ordinance, rental
spaces within mobile home parks which have been
occupied by a “recreational vehicle” as defined by
Civil Code 445799.24 for a period of nine (9) months
or more.
(m) “Mobile Home Tenant” A tenant, subtenant,
lessee, or sub-lessee, or any other person entitled to
the use or occupancy of any mobile home space
otherwise a party to a rental agreement exempt from
regulation under this ordinance pursuant to Civil
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Code §798.17.
(n) “Net 0perating Income.” Net operating
income as defined in Section 9.28.120 (a) of this
ordinance.
(o) “Owner.” A mobile home park owner.
(p) “Party”. “Party” as used in this ordinance
refers to any affected mobile home tenant and/or
owner involved in proceedings under this ordinance.
(q) “Percent Chancre in Consumer Price Index.”
The annual percent change in the Consumer Price
Index, calculated to the nearest tenth, published for
the month of July, issued in the month of August. In
the event that an index is not published for the month
of July, the closest preceding month for which an
index is published shall be used.
(r) “Rent”. Mobile home space rent.
(s) “Rent Increase.” Any additional space rent
demanded of or paid by a tenant for a mobile home
space including any reduction in housing services
without a corresponding reduction in the amount
demanded or paid for rent. Said increase shall be 1.)
uniform in percentage rate relative to current base
rent or 2.) uniform in dollar amount relative to base
rent. Failure to reduce rent at the end of an
amortization period for a capital improvement or for
separately billed utilities will also be regarded to
constitute an unauthorized rent increase for the
purposes of this ordinance.
(t) “Rent Stabilization Administration Fee.”
The fee established from time to time by resolution of
the City Council in accordance with the provisions of
Section 9.28.160 herein.
(u) “Space Rent.” The total consideration,
including any bonus, benefit, or gratuity, demanded
or received by a mobile home park owner for or in
connection with the use or occupancy of a mobile
home space or any housing services provided with
the mobile home space. Space rent shall not include
any amount paid for the use or occupancy of a mobile
home dwelling unit, unless the amount paid for the
use or occupancy of a mobile home is or includes
consideration paid to a mobile home park owner
under a rental agreement or other document
evidencing tenancy of the mobile home.
(v) “Substantial Rehabilitation.” That work
done by an owner to a mobile home space or to the
common areas of the mobile home park, exclusive of
a capital improvement as that term is defined herein,
the value of which exceeds Two Hundred Dollars
($200.00) and which is performed whether to secure
compliance with any state or local law or to repair
damage resulting from fire, earthquake, or other
casualty or natural disaster, to the extent such work is not reimbursed by insurance.
(w) “Tenant.” Mobile Home Space Tenant.
(x) “Tenant-to-be.” A person who is not
currently a tenant in a mobile home park but is a
prospective mobile home space tenant in a mobile
home park but is a prospective mobile home space
tenant who desires the use of a mobile home space as
defined in this chapter and has presented
himself/herself to the park owner as such.
9.28.040 Base Rent- Initial Calculation
Except as hereinafter provided, an owner shall not
demand, accept, or retain rent for a mobile home
space exceeding the rent in effect for said space on
the effective date of this ordinance. If a previously
rented mobile home space was not rented on the
effective date of this ordinance, the owner shall not,
except as hereinafter provided, demand, accept or
retain rent for said space exceeding the rent in effect during the last month the space was rented prior to
the effective date of this ordinance.
9.28.050 Residential Rent Increase
Limitations.
(a) Except as provided in subsections (b) and
(c) of this section, from and after August 22, 1992, or the effective date of this ordinance, which ever
should be earlier, the space rent payable for use or
occupancy of any mobile home space shall not be
increased, in any twelve (12) month period, more that
once. Said increase shall not exceed:
(i) One hundred (100) percent of the
percent change in Consumer Price Index, or
(ii) Six percent, whichever may be less.
(b) If a park owner wishes to apportion to each
space on a pro-rata basis the allowable percentage of
any current rent stabilization administration fee, in
addition to any increase of space rent in accordance
with preceding section (a), the following provision
shall apply:
(i) The owner shall provide to all affected
tenants documentation supporting the allowable
amount to be collected in order to recover a portion
of rent stabilization administration fees. At a
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minimum such documentation shall include; billing
notices or other equivalent documents from the City
imposing the rent stabilization administration fee; a
copy of Section 9.28.160 of the ordinance which
authorizes the apportionment of rent stabilization
administration fees; the calculations used by the
owner to apportion the cost of the allowable
percentage among the affected tenants. In addition,
the owner shall provide all affected tenants with the
address and telephone number of the Clerk and the
fact that the affected tenant is encouraged to contact
the Clerk for an explanation of the provisions of this
ordinance.
(ii) A rent increase approved pursuant to the
provisions of this subsection and in accordance with
the procedure set forth in Section 9.28.070 of this
ordinance shall not be considered part of the rent base upon which future rent increases can be made.
(c) In the event an owner wishes to increase the
rent payable for any mobile home space within a
twelve (12) month period more than the amount
permitted in subsection (a) for any reason other than
that stated in subsection (b) herein, the procedures set forth in Sections 9.28.060 and 9.28.070 shall be
followed. In the event an owner wishes to increase
the rent payable for any mobile home space within a
twelve (12) month period more than three hundred
(300) percent of the percent change in the Consumer
Price Index, a mandatory meet-and confer meeting
and arbitration shall be automatically be required to
show good cause why such an increase is necessary.
The arbitrator may reduce this proposed increase to a
figure determined upon the evidence submitted by the
park owner or his representative to be a fair return
upon investment.
(d) A notice of rent increase given by an owner
pursuant to Section 9.28.050 (a), (b) or (c) of this
ordinance shall be given in writing at least ninety
(90) days before any rent increase is to take effect.
(e) A notice of rent increase incorporating
within it a proposed capital improvement which is
not otherwise authorized as a pass through pursuant
to Civil Code Section 798.49 must be claimed within
twelve months of the completion of the project,
construction or final billing.
9.28.060 Information to be supplied
Tenants and Tenants-To-Be
(a) Within thirty (30) days after the operative
date of this ordinance and upon re-renting of each
mobile home space thereafter, the owner shall supply
each affected tenant or tenant-to-be with a current
copy of this ordinance.
(b) Whenever the owner serves a notice of rent
increase, except a notice of rent increase provided
pursuant to Section 9.28.050 (1) of this ordinance, the owner shall at the same time and in the same manner
serve the affected tenant or tenant-to-be with a notice that sets forth all of the following information:
(1) The amount of the rent increase both in
dollars and as a percentage of existing rent and
documentation supporting the level of increase
desired, including at a minimum: a summary of the
unavoidable increases in maintenance and operating
expenses; a statement of the cost, nature,
amortization, and allocation among mobile home
spaces of any substantial rehabilitation or capital
improvement; a summary of the increased cost of the
owner’s debt service and the date and nature of the
sale or refinancing transaction; a summary or the
owner’s net operating income of the preceding
twenty-four (24) months and other relevant
information that supports the level of rent increase
desired.
(2) The identity of all other affected tenants and
the spaces which they rent and a roster of tenants in
the park occupying recreational vehicles in place for
more than 9 months;
(3) The address and telephone number of the
Clerk and a.) the fact that the tenant is encouraged to contact the Clerk for an explanation of the provisions
of this ordinance; b.) documentation supporting the
level of increase is on file with the Clerk.
(4) A copy of the petition form as prepared and
provided by the Clerk which initiates the process
established by this ordinance.
(5) In addition, park owner shall place on file
with the clerk two copies of : documentation
supporting the level of increase desired, including at
a minimum: a summary of the unavoidable increases
in maintenance and operating expenses; a statement
of the cost, nature, amortization, and allocation
among mobile home spaces of any substantial
rehabilitation or capital improvement; a summary of
the increased cost of the owner’s debt service and the
date and nature of the sale or refinancing transaction; a summary of the owner’s net operating income of
the preceding twenty-four (24) months and other
relevant information that supports the level of rent
increase desired. These documents will be available
for inspection at the offices of the Sonoma County
Community Development Commission;
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(6) If applicable, notification that the proposed
rent increase exceeds 300 percent of the change in the
consumer price index, and that arbitration is deemed
automatically required by the provisions of Section
9.28.050 (c) without any need to file an arbitration
petition. Such notices shall bear the following
language: “ARBITRATION OF THE PROPOSED
INCREASE IS AUTOMATICALLY REQUIRED IN
THIS MATTER BY OPERATION OF LAW.”
Erroneous use of this notice shall be regarded as an
irrevocable stipulation to the jurisdiction of the
arbitrator.
(c) The park owner shall also serve any tenantto-be as defined in Section 9.28.030 (x) with a separate “RENTAL OPTION” notice which sets
forth the recitation in capital letters set forth in
Section 9.28.080, Rights of a “Tenant-To-Be”.
(d) An owner failing to provide an affected
tenant or tenant-to-be with the information,
documents, and notices required by this section shall
not be entitled to collect any rent increase otherwise
authorized by this ordinance from that tenant nor to
any rent increase that might otherwise be awarded by
an arbitrator. Such failure by the owner shall be a
defense in any action brought by the owner to recover
possession of a mobile home space or to collect any
rent increase from the tenant. An owner may cure the
failure to serve any notice or meet the obligation to
provide information to a tenant or tenant-to-be which
is required under this ordinance by giving such notice
or information before initiating an action for
possession of the space or collecting any rent
increase or binding a tenant-to-be to a month-tomonth rental/long-term lease election otherwise authorized hereunder.
(e) An affected tenant who is given notice of a
rent increase is entitled to file a Petition for Space
Rent Review as provided in Section 9.28.070 of this
ordinance in spite of the fact that the owner has failed to provide the affected tenant(s) with all the
information, documents and notices required by this
ordinance.
9.28.070 The Rent Dispute Resolution
Process
(a) Mandatory Meet-and-Confer Meeting.
Except when a park owner elects rent increases
permitted under Section 9.28.050 (a), the tenants and
park owners must, within seven (7) working days of
the notice of rent increase, meet and confer with each
other’s representatives at the Offices of the Sonoma
County Community Development Commission.
Written notice of the time, place and date of the
meeting should be arranged within forty-eight (48)
working hours of the notice of rent increase. If the
park owners of tenants fail to agree on the time, place and date of the hearing within that forty-eight hour
span and provide due notice to the Clerk, the meeting
shall be set at the convenience of the Clerk. At the
meeting, representatives of the parties should
exchange documentary evidence that the parties in
good faith then know will be used to support their
respective positions in an arbitration and discuss the
issues in dispute. In the case of a park owner, all
financial data upon which any proposed increase is
claimed shall be supplied to tenant representatives at
the time of the meet and confer meeting.
1) Sanctions. A park owner’s failure to
provide the minimum information required by this
ordinance set forth under subsection 9.28.070(a)(2)
below or attend the hearing shall require the Clerk to
suspend further proceedings under this ordinance.
The park owners’ application for a rent increase
under such circumstances shall be deemed defective,
without force or effect, and deemed withdrawn. Renoticing of the increase shall be required to reinitiate an application for rent increase.
2) Minimum Meet-and-Confer Information.
The park owner has a duty to provide adequate
information to the tenants regarding the park’s net
operating income sufficient for a reasonably
sophisticated inquiry into the financial status of the
park owner’s business. This will consist of true and
accurate book entries or other competent evidence of
gross income including, but not limited to , gross rent interest upon security and cleaning deposits, income
from ancillary services (sub-metering of utilities,
laundry facilities, etc.) and true and accurate book
entries or other competent evidence of operating
expenses including , but not limited to, license fees,
property taxes, utilities, insurance, management
expenses, landlord performed labor, building and
grounds maintenance, legal fees, auto and truck
expenses, employee benefits, permits, refuse
removal, ground lease payments, and similar
additional expenses.
(b) Petition. If discussions between owner and
tenants do not resolve the dispute between them, the
tenants or their representative shall file with the Clerk a Petition for Space Rent Review and a copy of the
notice of rent increase, if available, within thirty (30) days the date upon which the rent increase notice was
received. The Clerk shall not accept a petition for
filing unless it has been signed by at least fifty- one (51) percent of all affected tenants. Upon the filing of Agenda Item Number: 6
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a petition, the rent increase is not effective and may
not be collected until and to the extent it is awarded
by an arbitrator or until the petition is abandoned. As used herein, the term “abandoned” refers to lack of
prosecution of the arbitration by the mobile home
tenants’ representative(s). An automatic arbitration
based upon a 300% CPI increase will not require
active tenant prosecution, although such prosecution
will not be prohibited. The term “prosecution” refers
to actively pursuing necessary steps toward preparing
the tenants’ case for the arbitration hearing.
(c) Contents of Petition.
(1) The Petition for Space Rent Review shall set
forth the total number of affected rented spaces in the mobile home park, shall identify the space occupied
by each tenant and shall state the date upon which the
notice of the rent increase was received by the
tenant(s).
(2) After obtaining the required signatures, the
tenant(s) shall deliver the petition or mail it by
registered or certified mail to the Clerk at the
following address: P.O. Box 1776, Sebastopol,
California, 95473-1776 (or successor address or
agency). Not petition shall be accepted unless it is
accompanied by the requisite number of signatures
and is received in the office of the Clerk within the
twenty-one (21) day period set forth in paragraph (b)
above. The Clerk shall provide a copy of the
completed petition form to both parties and the
arbitrator forthwith or within five (5) working days.
(d) Information Questionnaire. After the Clerk
has accepted a Petition for Space Rent Review, the
Clerk shall remit to the owner and tenants an
information questionnaire in such form as the Clerk
may prescribe. The completed information
questionnaire must be returned to the Clerk at least
five (5) working days prior to the date scheduled for
hearing of the petition by the arbitrator. Copies of the completed information questionnaire shall be
provided to the arbitrator and the opposing party.
(e) Assignment of Arbitrator and Hearing Date.
Upon receipt of the petition, or in the event of an
automatic arbitration, or upon an affected tenant’s
claim of a vacancy control violation where an
unauthorized rent increase has been sought, the Clerk
shall set a date for the arbitration hearing no sooner
than five (5) nor later than ten (10) working days
after the arbitrator is assigned. The owner and
affected tenant(s) shall be notified immediately in
writing by the Clerk of the date, time and place of the hearing and this notice shall be served either in
person or by ordinary mail.
(f) Arbitration Hearing.
(1) The owner and tenant(s) may appear at the
hearing and offer oral and documentary evidence.
Both the owner and tenant(s) may designate a
representative or representatives to appear for them at the hearing. The arbitrator may grant or order one (1)
continuance for not more than five (5) days from the
date of the initial hearing. The burden of proving that the amount of rent increase is reasonable shall be on
the owner by a preponderance of the evidence. The
hearing need not be conducted according to technical
rules relating to evidence. The hearing need not be
conducted according to technical rules relating to
evidence and witnesses. The rules of evidence and
manner of producing evidence shall be those rules set
forth in § 11513 of the California Government Code
for the conduct of hearings under the Administrative
Procedure Act. These rules may be relaxed at the
discretion of the arbitrator in the interests of justice. (2) The arbitrator shall, within fourteen (14)
days of the hearing, submit by mail a written
statement of decision and the reasons for the decision
to the Clerk who shall forthwith distribute by mail
copies of the decision to the owner and tenant(s). The
arbitrator shall determine the amount of rent increase, if any, which is reasonable based upon all the
provisions of this ordinance.
(3) The arbitrator shall not allow more than one
(1) rent increase per park per twelve (12) month
period.
(4) The decision of the arbitrator, rendered in
accordance with this section, shall be final and
binding upon the owner and all affected tenants. The
decision of the arbitrator will be subject to the
provision of CCP §1094.5.
(5) Any party may have electronic recording
equipment or a court reporter present to record and
prepare a transcript of the hearing before the
arbitrator, however, such equipment or reporter shall
be provided at that party’s own expense.
(6) The arbitrator is authorized to modify the
basic time periods set forth herein at his or her
discretion to promote the purposes of this program
provided a final decision is rendered within ninety
(90) days of the notice of rent increase.
(7) Any procedural or jurisdictional dispute
regarding the processes set forth herein may be
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decided by the arbitrator.
9.28.080 Rights of a “Tenant-To-Be”.
Any person who is a “Tenant-to-be” as defined in
Section 9.28.030(x) must be offered the option of
renting a mobile home space in manner which will
permit the “tenant-to-be” to receive the benefits of
the Mobile Home Space Rent Stabilization Program
which includes, but is not limited to, rental of a
mobile home space on a month-to-month basis and a
new base rent as set forth in Section 9.28.230 (b).
Such a person cannot be denied the option of a
tenancy twelve months or less in duration. The Park
owner shall provide each “Tenant-to-be” with a
written notification of the option which shall make
the following recitation: “UNDER SEBASTOPOL
ORDINANCE NO.______, SECTION VIII YOU
ARE LEGALLY ENTITLED TO ELECT A
MONTH-TO-MONTH TENANCY OVER ANY
OTHER LONGER PERIODIC TENANCY. YOU
ARE ADVISED THAT YOU MAY NOT BE
ENTITLED TO RENT STABILIZATION (RENT
CONTROL) PROGRAM BENEFITS IF YOU
ELECT A LEASE OF MORE THAN TWELVE
MONTHS IN DURATION IF THAT LEASE
MEETS THE REQUIREMENT OF CIVIL CODE
§17200 WHICH HAS BEEN ATTACHED
HERETO.” Any effort to circumvent the
requirements of this section shall be unlawful, as well as unfair business practice subject to enforcement
under Business and Professions Code §17200 et seq.
9.28.090 Subpoena Power
Subpoenas, including subpoenas duces tecum,
requiring a person to attend a particular time and
place to testify as a witness, may be issued in
connection with any dispute pending before an
arbitrator, and shall be issued at the request of the
Clerk, an arbitrator, the tenant(s) or the owner.
Subpoenas shall be issued and attested by the Clerk
of the City Council. A subpoena duces tecum shall be
issued only upon the filing with the Clerk of the City
Council of an affidavit showing good cause for the
production of the matters of things desired to be
produced, setting forth in full detail the materiality
thereof to the issues involved in the proceedings, and
stating that the witness has the desired matters or
things in his or her possession or under his or her
control, and a copy of such affidavit shall be served
with the subpoena. Any subpoena or subpoena duces
tecum issued pursuant to the provisions of this
ordinance may be served in person or by certified
mail, before the hearing for which the attendance is
sought. Service by certified mail shall be complete on
the date of receipt. Any subpoena or subpoena duces
tecum issued pursuant to the provisions of this
ordinance shall be deemed issued by and in the name
of the Sebastopol City Council.
9.28.100 Consolidation of Petitions
As soon as possible after a petition has been filed
with respect to mobile home spaces which are within
a single park, the Clerk shall, to the extent possible, consistent with the time limitation provided herein,
consolidate petitions involving ten (10) or fewer
affected tenants.
9.28.110 Standards of Review.
In evaluating the space increase proposed or imposed
by the owner, the following factors may be
considered:
(a) Beneficial increases in maintenance and
operating expenses, including but not limited to the
reasonable value of the owner’s labor and any
increased costs for services provided by a public
agency, public utility, or quasi-public agency or
utility, provided, however, that any increased costs in rent stabilization administration fees shall be subject to the provisions of Sections 9.28.050(b) and
9.28.160 herein.
(b) The substantial rehabilitation of the addition
of capital improvements, including the reasonable
value of the owner’s labor, as long as such
rehabilitation or improvement has been completed
and is:
(1) distinguished from ordinary repair or
maintenance;
(2) for the primary benefit, use, and enjoyment
of the tenants;
(3) permanently fixed in place or relatively
immobile and dedicated to the use of the property;
(4) not coin-operated nor one for which a “use
fee” or other charge is imposed on tenants for its use; and
(5) cost-factored and amortized over the good
faith estimate of the remaining useful life of the
rehabilitation or improvement;
(6) does not constitute maintenance of the
infrastructure of gas or electrical lines within the
mobile home park for which the public utility has
permitted the park owner a special premium with the
intent that it be used to replace or otherwise maintain the system within the mobile home park.
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(c) Increased costs of debt service due to a sale
or involuntary refinancing of the park within twelve
(12) months of the increase provided that:
(1) The sale or refinancing is found to
have been an arm’s length transaction;
(2) The proceeds of such refinancing is
found to have been used for park improvements or
similar park-related uses;
(3) The aggregate amount from which
total debt service costs arise constitutes no more than seventy percent (70%) of the value of the property as
established by a lender’s appraisal.
(d) The rental history of the space or the park
of which it is apart, including:
(1) The presence or absence of past
increases:
(2) The frequency of past rent increases;
and
(3) The occupancy rate of the park in
comparison to comparable parks in the same general
area.
(e) The physical condition of the mobile home
space or park of which it is a part, including the
quantity and quality of maintenance and repairs
performed during the preceding twelve (12) months.
(f) Any increase or reduction of housing
services since the last rent increase.
(g) Existing space rents for comparable spaces
in comparable parks.
(h) A decrease in “net operating income” as
defined in Section 9.28.120(a).
(i) A fair return on the property prorated among
the spaces of the park.
(j) Other financial information which the owner
is willing to provide.
(k) Any costs incurred as a result of a natural
disaster and only to the extent such costs have not
been reimbursed to the owner by insurance or other
sources.
9.28.120 Net Operating Income
In evaluating a space rent increase imposed by an
owner to maintain the owner’s net operating income
from the park, the following definitions and
provisions shall apply:
(a) “Net Operating Income” of mobile home
park means the gross income of the park less the
operating expenses of the park.
(b) “Gross Income” means the sum of the
following:
(1) gross space rents, computed as gross
space rental income at 100% occupancy; plus
(2) other income generated as a result of
the operation of the park, including, but not limited to fees for services actually rendered; plus
(3) revenue received by the park owner
from the sale of gas and electricity to park residents
where such utilities are billed individually to the park residents by the park owner. This revenue shall equal
the total cost of the utilities to the residents minus the amount paid by the park owner for such utilities to
the utility provider; minus
(4) uncollected space rents due to
vacancy and bad debts to the extent that the same are
beyond the park owner’s control. Uncollected space
rents in excess of three percent(3%) of gross space
rent shall be presumed to be unreasonable unless
established otherwise and shall not be included in
computing gross income. Where uncollected space
rents must be estimated, the average of the preceding
three (3) years’ experience shall be use.
(c) “Operating Expenses” means:
(1) Real property taxes and
assessments.
(2) Utility costs to the extent that they
are included in space rent.
(3) Management expenses including
the compensation of administrative personnel,
including the value of any mobile home space offered
as part of compensation for such services, reasonable
and necessary advertising to ensure occupancy only,
legal and accounting services as permitted herein,
and other managerial expenses. Management
expenses are presumed to be not more than five
percent (5%) of gross income, unless established
otherwise.
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(4) Normal repair and maintenance expenses
for the grounds and common facilities including but
not limited to landscaping, cleaning, and repair of
equipment and facilities.
(5) Owner-performed labor in operating or
maintaining the park. In addition to the management
expenses listed above, where the owner performs
managerial or maintenance services which are
uncompensated, the owner may include the
reasonable value of such services. Owner-performed
labor shall be limited to five percent (5%) of gross
income unless the arbitrator finds that such a
limitation would be substantially unfair in a given
case. A park owner must devote substantially all of
his or her time, that is, at least forty (40) hours per week, to performing such managerial or maintenance
services in order to warrant the full five percent (5%) credit for his or her labor as an operating expense. No credit for such services shall be authorized unless a
park owner documents the hours utilized in
performing such services and the nature of the
services provided.
(6) Operating supplies such as janitorial
supplies, gardening supplies, stationery, and so forth. (7) Insurance premiums prorated over the life
of the policy.
(8) Other taxes, fees, and permits, except as
provided in Section 9.28.160 herein.
(9) Reserves for replacement of long-term
improvement or facilities, provided that accumulated
reserves shall not exceed five percent (5%) of gross
income.
(10) Necessary capital improvement costs
exceeding existing reserves for replacement. A park
owner may include the cost of necessary capital
improvement expenditures which would exceed
existing reserves for replacement. A necessary capital
improvement shall be an improvement required to
maintain the common facilities and areas of the park
in a decent, safe, and sanitary condition or to
maintain the existing level of park amenities and
services.
Expenditures for necessary capital improvements to
upgrade existing facilities shall be an allowable
operating expense only if the park owner has:
(i) Consulted with the park residents prior to
initiating construction of the improvements regarding
the nature and purpose of the improvements and the
estimated cost of the improvements.
(ii) Obtained the prior written consent of at least
one (1) adult resident from a majority of the mobile
home spaces to include the cost of the improvements
as an operating expense. Evidence of such consent
must be presented at the time of filing the application seeking to include such a capital improvement as an
operating expense.
(iii) Any capital improvement expenses shall be
amortized over the reasonable life of the
improvement or such other period as may be deemed
reasonable by the arbitrator under the circumstances.
In the event that the capital improvement expenditure
is necessitated as a result of an accident, disaster, or other event for which the park owner received
insurance benefits, only those capital improvement
costs otherwise allowable exceeding the insurance
benefits may be calculated as operating expenses.
(11) Involuntary refinancing of mortgage or debt
principal. A park owner may, under the.provisions of
this subsection, be able to include certain debt service costs as an operating expense. Such costs are limited
to increases in interest payments from those interest
payments made during 1986 or the first year such
payments were made if the owner acquired the park
after 1986 which result from one of the following
situations or the equivalent thereof:
(i) refinancing of the outstanding principal
owed for the acquisition of a park where such
refinancing is mandated by the terms of a financing
transaction entered into prior to January 1, 1987, for
instance, termination of a loan with a balloon
payment; or
(ii) increased interest costs incurred as a result
of a variable interest rate loan used to finance the
acquisition of the park and entered into prior to
January 1, 1987.
In refinancing, increased interest shall be permitted to be considered as an operating expense only where the
park owner can show that the terms of the refinancing
were reasonable and consistent with prudent business
practices under the circumstances.
(d) Operating expenses shall not include the
following:
(1) Debt service expenses, except as
provided in subsection (c) (11), above.
(2) Depreciation.
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(3) Any expense for which the park
owner is reimbursed.
(4) Attorneys’ fees and costs, except
printing costs and documentation as required by
Section 9.28.060, incurred in proceedings before an
arbitrator or in connection with legal proceedings
challenging the decision of an arbitrator or the
validity or applicability of this ordinance.
(e) All operating expenses must be reasonable.
Whenever a particular expense exceeds the normal
industry or other comparable standard, the park
owner shall bear the burden of providing the
reasonableness of the expense. To the extent that an
arbitrator finds any such expense to be unreasonable,
the arbitrator shall adjust the expense to reflect the
normal industry or other comparable standard.
9.28.130 Obligations of the Parties
(a) If a final decision by an arbitrator finds that
a proposed increase or any portion thereof that was
previously inoperative is justified, the tenant shall
pay the amount found justified to the owner within
thirty (30) days after the decision is made.
(b) If a final decision by an arbitrator finds that
an increased or any portion thereof is not justified,
the owner shall refund any amount found to be
unjustified, but that had been paid, to the tenant
within thirty (30) days after the decision is made. If
such refund is not made within the said thirty (30)
days, the tenant may withhold the amount from the
next space rent(s) due until the full amount of the
refund has been made. Notwithstanding the
foregoing, in the event that the tenancy of tenant is
terminated for any reason prior to full credit against
rent, the balance of the credit due the tenant shall be paid by the owner within thirty (30) days from the
date of the termination of the tenancy.
(c) Any sum of money that under the provisions
of this section is the obligation of the owner or
tenant, as the case may be, shall constitute a debt and, subject to the foregoing provisions of this section,
may be collected in any manner provided by law for
the collection of debts.
9.28.140 Tenant’s Right of Refusal
A tenant may refuse to pay any increase in rent which
is in violation of this ordinance, provided a petition
has been filed and either no final decision has been
reached by an arbitrator, or the increase has been
determined to violate the provisions of this
ordinance. Such refusal to pay shall be a defense in
any action brought to recover possession of a mobile
home space or to collect the rent increase.
9.28.150 Retaliatory Acts: Tenant’s Right
to Organize
(a) No owner may retaliate against a tenant or
tenant- to-be for the tenant’s or tenant-to-be’s
assertion or exercise of rights under this in any
manner, including but not limited to, threatening to
bring or bringing an action to recover possession of a
mobile home space; engaging in any form of
harassment that causes a tenant to quit the premises;
dissuades a tenant-to-be from freely exercising his or
her legal options to choose a month-to-month rental;
decreasing housing services; increasing the space
rent; or imposing or increasing a security deposit or
any other charge payable by a tenant. The tenants
have a right to organize a tenant’s association without hindrance from the park owner to exercise the rights
provided under the provisions of the Sonoma County
Code. This association may be referred to as “the
Park Tenant’s Association at (Park Name).”
9.28.160 Solicitation of Any Petitions By
the Park Owners Are Without Force Or Legal
Effect Within County’s Program
The distribution of a petition or other documents
seeking to have mobile home tenants waive rights,
abandon a filed petition or in any way affect the
entitlement of the tenants to participate in the rent
stabilization process authorized under the Sonoma
County Code shall be without force or legal effect
within county’s rent stabilization program. Such
documents shall not affect the right of any tenant to
participate in the rights, remedies, procedures and
processes set forth in this code. Efforts to utilize
such documents to discourage participation in the
County’s rent stabilization program may be deemed
retaliatory.
9.28.170 Fees.
The costs of administration of this ordinance shall be
borne by the City of Sebastopol, subject to
reimbursement of the City General Fund by
imposition of a rent stabilization administration fee
chargeable against each mobile home space in the
City. The park owner who pays these fees may pass
through fifty percent (50%) of the fees assessed
against a mobile home space to the tenant only as set
forth herein. This fee pass through must take place
no later than twelve months after the park owner is
billed for the program administration fees. Failure to
timely pass through 50% of the fees assessed against
mobile home space will result in the loss of the park
owner’s right to do so. The remaining fifty percent
(50%) of the fees assessed against a mobile home
space shall not be passed on in any way to tenants.
Agenda Item Number: 6
Agenda Item Number: 6
City Council Meeting Packet of: April 5, 2022
Fees passed through to tenants as herein authorized
shall not be considered a part of the rent base upon
which future rent increases can be made.
The fees imposed by this section shall be paid
annually. The time and manner of payment,
delinquency status, and assessment and collection of
penalties for delinquent payment of the fees imposed
by this section shall be as provided by separate
resolution of the City Council. The Clerk shall
recommend to the City of Sebastopol from time to
time the amount of such fee and City Council shall
adopt such fee by ordinance or resolution.
9.28.180 Exemption From Fees.
Any park owner who believes that s/he may be
entitled to a space fee exemption pursuant to Civil
Code §798.17(b), having provided the park tenant
with a legally recognized long-term lease which is
not subject to rent stabilization administration fees,
shall provide the Clerk with the following
documentation:
1.) the executed lease for each exempt space
claimed;
2.) amendments to said exempt lease, if any
3.) for a newly constructed space, proof that the
space was constructed after January 1, 1990 (building
permits, etc.).
9.28.190 Non-waiverability
Any provision, whether oral or written, in or
pertaining to a rental agreement whereby any
provision of this ordinance is waived or modified, is
against public policy and void, except with respect to
any rental agreement complying with all of the terms
and conditions set forth in §798.17 of the California
Civil Code (as amended 1986).
9.28.200 Penalties and Remedies
In addition to those penalties and remedies set forth
elsewhere in this ordinance, the following remedies
shall apply:
Any owner who demands, accepts, receives, or
retains any money as rent from a tenant to which the
owner is not entitled under the provisions of this
ordinance shall be liable to the tenant for any actual
damages, attorney’s fees, and costs incurred by the
tenant as a consequence thereof plus a penalty in the
sum of three times the amount of money the owner
accepted, received, or retained in violation of the
provisions of this ordinance, or $500.00, whichever is
greater.
9.28.210 Review By the City Council
The City Council shall review the effectiveness of
this ordinance in addressing the problems giving rise
to its enactment at least one (1) year from its
enactment. Notice of the time and place of the City
Council’s review shall be published at least ten (10)
days prior to said date in a newspaper of general
circulation in the City of Sebastopol.
9.28.220 Severability.
This ordinance shall be liberally construed to achieve
its purposes and preserve its validity. If any provision or clause of this ordinance or application thereof to
any person or circumstances is held invalid, such
invalidity shall not affect other provisions or
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 and are intended to have
independent validity.
9.28.230 Vacancy Control: Establishment
of New Base Rent
(a) A mobile home park owner shall be
permitted to charge a new base rent for a mobile
home space whenever a lawful space vacancy occurs.
For purposes of this ordinance, a lawful space
vacancy is defined as follows:
(1) A vacancy occurring because of the
termination of the tenancy of the affected mobile
home tenant in accordance with the Mobile Home
Residency Law, California Civil Code §798.55
through 798.60.
(2) A vacancy of the mobile
home space arising from the voluntary removal of a
mobile home from the mobile home space by the
affected mobile home tenant. A removal of the
mobile home from the space for the purpose of
performing rehabilitation or capital improvements to
the space or for the purpose of upgrading the mobile
home shall not constitute a voluntary removal of the
mobile home
(b) When a new base rent is established
following the vacancy of mobile home space
pursuant to this subsection, the park owner shall give
written notice to the new affected mobile home
tenant of twelve (12) month anniversary date for rent
increases allowed under Section 9.28.050 and shall
give written notice to such affected tenant that the
space rent may be subject to stabilized rent increases
pursuant to the provisions of this Chapter.
Agenda Item Number: 6
Agenda Item Number: 6
City Council Meeting Packet of: April 5, 2022
(c) In the absence of a lawful vacancy, a park
owner is prohibited from raising rent upon a sale of a
mobile home on site to a tenant-to-be or current
tenant.
9.28.240 When Recreation Vehicle Space
Tenants Are to Be Treated as “Affected Tenants.”
Any recreational vehicle space that is occupied by a
recreational vehicle as defined in Civil Code §799.24
for a period in excess of nine (9) months on or after
October 1, 1991, shall be regarded to a “mobile home
space “ for purposes of this ordinance, and a tenant
upon such a space shall be entitled to all the rights,
protections and obligations of this Chapter. Such a
space tenant shall be counted as an “affected tenant”
upon the effective date of this ordinance, and said
space shall be subject to the fees authorized by the
City council for mobile home spaces. The space
tenant and the recreational vehicle park owner shall
apportion the fee in the manner authorized for mobile
home spaces subject to this Article generally.
9.28.250 Severability
If any section, subsection, sentence, clause or phrase
of this ordinance is for any reason held to be
unconstitutional and invalid, such decision shall not
affect the validity of the remaining portion of this
ordinance. The City Council hereby declares that it
would have passed this ordinance and every section,
subsection, sentence, clause or phrase thereof,
irrespective of the fact any one or more sections,
subsection, sentences, clauses or phrases be declared
unconstitutional or invalid.
9.28.260 Legal Challenge
If an injunction or any other administrative or judicial challenge interferes with the timely implementation
of this ordinance before the lapse of the five year
term of the City’s original rent stabilization
ordinance, the City council hereby declares that it
ordains that said original rent stabilization ordinance (Ordinance No. 897) shall not sunset but be
continued indefinitely until said challenge is
overcome. This action is undertaken so that at least
the existing and current level of rent stabilization
projection established pursuant to Ordinance No. 897
shall continue to be provided to the affected mobile
home park tenants of Sebastopol until further action
of the City Council.
Agenda Item Number: 6
Agenda Item Number: 6
City Council Meeting Packet of: April 5, 2022