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25 Staff Report - Amending Los Gatos Town Code Section 14.85= - COUNCIL AGENDA REPORT DATE: JULY 9, 2002 TO: MAYOR AND TOWN COUNCIL FROM: DEBRA J. FIGONE, TOWN MANAGER SUBJECT: MEETING DATE: 7/15/02 ITEM NO. INTRODUCE AN ORDINANCE AMENDING LOS GATOS TOWN CODE SECTION 14.85, MOBILE HOME RENTAL AND OTHER TENANT/ LANDLORD DISPUTES RECOMMENDATION: Introduce an Ordinance amending Los Gatos Town Code Section 14.85, "Mobile Home Rental and other Tenant/Landlord Disputes." a. Receive public comment. b. Direct the Town Clerk to read the title of the ordinance. c. Waive the reading of the text of the ordinance. d. Introduce the Ordinance amending Los Gatos Town Code Section 14.85, "Mobile Home Rental and other Tenant/Landlord Disputes," and instruct the Town Clerk to publish a summary no more than five (5) days prior to adoption. BACKGROUND: Town Code Section 14.85, "Mobile Home Rental and other Tenant/Landlord Disputes," governs the monthly rent that may be charged by a mobile home park owner for a mobile home park space, and provides a resolution process for rent- or service -related disputes between mobile home park owners and park residents. The Town contracts with Project Sentinel, a local nonprofit organization, to administer this Code, hereinafter called the "Mobile Home Ordinance." The Town's Rent Advisory Committee is charged with making recommendations to Council regarding modifications to the Mobile Home Ordinance, or to related processes. The Committee membership includes property owners, renters, and other residents of Los Gatos. The Rent Advisory Committee has recently completed an extensive, two-year review of the Mobile Home Ordinance. This review was prompted by difficulties encountered in implementing the existing version. At its July 2, 2002 meeting, the Committee adopted a recommendation that PREPARED BY: Regina A. Falkner Community Services Director Reviewed by: $'�>J Assistant Town Manager btZ Town Attorney Clerk Community Development Revised: 7/11/02 10:18 am Reformatted 5/30/01 Y d '/ PAGE 2 MAYOR AND TOWN COUNCIL SUBJECT: INTRODUCE AN ORDINANCE AMENDING LOS GATOS TOWN CODE SECTION 14.85, MOBILE HOME RENTAL AND OTHER TENANT/ LANDLORD DISPUTES July 9, 2002 Council introduce and adopt the proposed ordinance (Attachment 1), which contains revisions to the Mobile Home Ordinance. The goals of these revisions are to: • codify the procedures for noticing a rent increase, for disputing a rent increase, for petitioning a reduction in service, and for holding a mediation or arbitration hearing • improve communication between parties to a rental dispute • resolve rental disputes first through informal discussion, then through formal mediation, and finally through arbitration make the Mobile Home Ordinance consistent with field-tested best practices DISCUSSION: Administrative changes. The majority of the proposed changes are administrative. A brief discussion of the key points follows: 1. S.pace rent increase. The proposed ordinance would require mobile home park owners to give park residents at least 90 days notice of a proposed rent increase, for the following calendar year. Practically, this would mean that residents would be told on or about October 1 of each year if their rent would be increasing beginning January 1. The existing ordinance requires that owners give park residents notice on the same day each calendar year for an increase to take place during the following calendar year, with no minimum day notice requirement. 2. Supplemental rent increase. The proposed ordinance would require mobile home park owners to give park residents notice when a supplemental rent increase, was planned. This notice would be in writing, would list the reasons for the increase, and would explain how residents could file a petition against the increase. The existing ordinance requires that owners only give notice to the Town's agent, currently Project Sentinel. 3. Petition against supplemental rent increase. The proposed ordinance would simplify the process for disputing a supplemental rent increase. Park residents would send in petitions to the Town's agent disputing the proposed increase. If at least 20% of park residents sent in petitions, Project Sentinel would automatically open a rent dispute case. The existing ordinance requires that one park resident send a petition to the Town's agent, which would then send ballots to all park residents. At least 20% of residents would then have to return ballots to the Town's agent in order for a case to be opened. 4. Petition alleging service reduction. The existing ordinance requires that mobile home park owners provide a basic level of service to all park residents, such as the condition of fixtures PAGE 3 MAYOR AND TOWN COUNCIL SUBJECT: INTRODUCE AN ORDINANCE AMENDING LOS GATOS TOWN CODE S€CTION 14.85, MOBILE HOME RENTAL AND OTHER TENANT/ LANDLORD DISPUTES July 9, 2002 and equipment. It also states that a resident may file a petition for a rent decrease, based on a reduction in the basic level of service provided by park owners. The proposed ordinance would require residents to first give notice to park owners that a service level reduction exists, and give the owners a reasonable time in which to restore service. If service was not restored within that time, residents could then file a petition with the Town's agent, requesting that a rent dispute case be opened. The Town's agent would send ballots to all park residents; if at least 20% of residents returned the ballots, a case would be opened. 5. Resolution process. The proposed ordinance would require that all rent dispute cases be resolved first through conciliation, then mediation, then arbitration. The existing ordinance moved straight to arbitration, without any intervening steps. The Rent Advisory Committee believes that allowing for less formal and less adversarial means of resolution can more often lead to a resolution which satisfies both sides. 6. Mediation hearing. The proposed ordinance sets out a very specific procedure to be followed in a mediation hearing, with the goal of allowing equal time and input from all sides. The existing ordinance gives very brief instructions on how a mediation hearing is to be conducted. The mediation and arbitration procedures will more closely parallel those applied to rental housing disputes. Policy changes. The proposed ordinance contains some policy changes. Following is a discussion of those changes: 1. CPI rent increase. The existing ordinance states that a park owner may increase rents on an annual basis, in an amount equal to the annual increase in the Consumer Price Index (CPI), but not to exceed 5%. The proposed ordinance would allow a CPI increase not to exceed 5%, and not less than 3%. In some years, the market value of space rents will exceed 5%. In other years, the allowed increase will be greater than CPI. The proposed ordinance changes are intended to provide rent stabilization; i.e. to prevent spikes in the rents and allow owners to get a fair return on their investments. 2. Casualty loss. The existing ordinance states that whenever a mobile home is replaced, as when a park resident "trades up," the monthly rent upon the first resale following replacement will increase $100, an amount greater than the standard CPI increase. The proposed ordinance would exempt from this provision any replacement due to casualty loss, such as fire or earthquake. 3. Capital improvement expenses. The existing ordinance sets out a procedure for evaluating the reasonableness of a supplemental rent increase. It defines what may be included as legitimate operating expenses by a park owner; these legitimate expenses include capital PAGE 4 MAYOR AND TOWN COUNCIL SUBJECT: INTRODUCE AN ORDINANCE AMENDING LOS GATOS TOWN CODE SECTION 14.85, MOBILE HOME RENTAL AND OTHER TENANT/ LANDLORD DISPUTES July 9, 2002 improvements. Currently, a capital improvement is defined as fixed assets of not less than $2,500. The proposed ordinance would increase this amount to not less than $5,000. CONCLUSION: The proposed revisions to the Mobile Home Ordinance have been drafted through extensive work by Rent Advisory Committee members, Project Sentinel staff, and Town staff. The Rent Advisory Committee believes that they represent the best means to improve the process for resolving mobile home -related rental disputes. The Committee recommends that Council introduce the proposed Ordinance (Attachment 1). If the Council introduces the proposed Ordinance at its July 15 meeting, the Ordinance will be brought back to Council for adoption at its September 3 meeting. It would go into effect 30 days after adoption. ENVIRONMENTAL ASSESSMENT: Introduction of an ordinance is not a project defined under CEQA, and no further action is required. FISCAL IMPACT: Revision of the Mobile Home Ordinance will not result in any additional fiscal impact to the Town. Administration of the Ordinance is included in the Town's Operating Budget, in Program 8030, "Housing." Attachments: 1. Draft Ordinance amending the Los Gatos Town Code Chapter 14, Article VII.V., "Mobile Home Rental and other Tenant/Landlord Disputes" (Section 14.85) Distribution: Rent Advisory Committee members Martin Eichner, Project Sentinel, 1055 Sunnyvale/Saratoga Road #3, Sunnyvale, CA 94087 Doug McNally, Los Gatos Mobile Home Park RAF:JLM/jlm N:1S HARElmob ilehomeordintro. wpd ORDINANCE NO. Attachment 1 ORDINANCE AMENDING THE LOS GATOS TOWN CODE CHAPTER 14, ARTICLE VIII.V., MOBILE HOME RENTAL AND OTHER TENANT/LANDLORD DISPUTES (SECTION 14.85) THE TOWN COUNCIL OF THE TOWN OF LOS GATOS DOES HEREBY ORDAIN: SECTION I Section 14.85 of the Town Code is hereby amended to read as follows: ARTICLE VIII.V. MOBILE HOME RENTAL AND OTHER TENANT/LANDLORD DISPUTES DIVISION 1. GENERALLY Sec. 14.85.010. Title. This article shall be cited as the Mobile Home Ordinance. (Ord. No. 1917, § I, 10-19-92) Sec. 14.85.015. Purpose and findings. (a) Mobile home tenants, unlike apartment tenants or residents of other rental stock, are in the unique position of having made a substantial investment in a residence for which space is rented or leased. Removal and/or relocation of a mobile home from a park space is not a practical alternative to accepting an excessive rent increase in that it can only be accomplished at substantial cost, and in many instances may cause extensive damage to the mobile home and loss of appurtenances such as integrated landscaping and supporting structures inconsistent with the new location. Because mobile homes are often owned by senior citizens, persons on fixed incomes, and persons of low and moderate income, exorbitant rent increases fall upon these individuals with particular harshness. (b) The Town Council declares that it is now necessary in the public interest to establish a means by which to resolve the occasionally divisive and harmful impasse between park owners and mobile home tenants. After consideration of numerous factors, including the mandates of state law, regulations which best fit the needs of the Town have been selected. (1) (c) Rent control regulations are consistent with the Town's policy to encourage a variety of housing types, prices and densities within the community, respond to the need to preserve existing housing stock and assist in providing housing for moderate, low, and very low income households. (d) Rent control regulations can assist in protecting affordable housing in combination with Town programs and actions designed to reduce costs to the consumer which help to provide a variety of housing types within a range of costs to meet the needs of all income groups. (e) The regulations which are set forth in this article are designed to produce stability in rent increases for mobile home park tenants while recognizing the rights of mobile home park owners to receive a just and reasonable return. (f) The Council finds thP` the adoption of the ordinance codified in this article will not have a significant, substantial or adverse effect on the physical environment of the community because enactment of this article involves no deviation from the general plan and no change in the present use of any property within the Town. (Ord. No. 1917, § I, 10-19-92) Sec. 14.85.020. Definitions. For the purposes of this article, unless otherwise apparent from the context, certain words and phrases used in this article are defined as follows: (a) Arbitrator. An individual designated by the dcsigncc Town's agent to conduct the arbitration hearing and arbitration pre -hearing procedures of this article and to determine the rcasonablcncss efi'c,it iiicic,a1,3. (b) Affected tenants. All mobile home tenants in a mobile home park who have been notified by the park owner that a rent increase (including service reduction) is to become effective during the following calendar year, or who experience a service reduction. (c) Capital improvements. The installation of new improvements and facilities or the replacement or reconstruction of existing improvements and facilities which consist of more than ordinary maintenance or repairs. (d) Consumer price index (CPI). The consumer price index for all urban consumers for the San Francisco/Oakland/San Jose Area (all items) index (1967 equals 100) as reported by the U.S. Bureau of Labor Statistics. (2) c previous twt ivy 1 ut iittts Up to tivc (5) percent. CPI rei increase. An annual rent increase equal to the amount of increase in the CPI in the previous twelve (12) months up to five (5) percent and not less than three (3) percent. (f) Housing services. Those services provided and associated with the use or occupancy of a mobile home space, including but not limited to repairs, insurance, maintenance, replacement, painting, light, heat, water, laundry facilities and privileges, refuse removal, parking, recreation facilities, security service and any other benefits, privileges or facilities. tg). Mediator. An individual designated by the Town's agent to conduct the mediation procedures set forth in this article. (gh) Mobile home. A structure designed for human habitation which is transportable in one or more sections along a street or highway, commonly referred to as a mobile home. This definition includes manufactured homes when located on a mobile home space. (hi) Mobile home owner or tenant. Any person owning a mobile home who has a tenancy or right of use or occupancy of a mobile home space in a mobile home park. (ij,) Mobile home park. An area of land where two (2) or more mobile home spaces are rented, or held out for rent, or made available for use, to accommodate mobile homes used for human habitation. (lk) Mobile home space or space. 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 attached thereto or used in conjunction therewith where public utilities are provided. (kl) Owner or mobile home park owner. The owner, lessor, operator or manager of a mobile home park in the Town. (}m) Owner's petition. A petition filed by an owner seeking a supplemental rent increase. (inn) Rental agreement or lease. An agreement entered into between the park management or owner and a mobile home tenant establishing the terms and conditions of a mobile home park tenancy. (no) Service reduction. Any reduction in housing services which results in a cost savings to owner without a corresponding reduction in the monies demanded or paid for space rent. (op) Space rent. The total consideration, including any bonus, fees, surcharges, benefits or (3) gratuity demanded or received in connection with the use or occupancy of a mobile home space j a -mobile home park, or for housing services provided, and security deposits, but exclusive of any amount paid for the use of the mobile home as a dwelling unit. Space rent increases. Any additional rent above the base space rent which is demanded of or paid by a tenant for a mobile home space including service reductions. Supplemental rent increase. An increase in space rent in excess of the annual CPI Rent Increase, determined by the arbitrator to result in a fair and reasonable return to the owner. Tenant's petition. A petition filed by one or a group of affected tenants. Town's agent. The individual or agency designated by the Town eCouncil to perform the services defined herein. Validated tenant's petition. A tenant's petition filed by one or a group of affected tenants that meets the statutory requirements of this article. (Ord. No. 1917, § I, 10-19-92; Ord. No. 1973, § I, 5-2-94) Sec. 14.85.025. Exceptions to article provisions; partial vacancy decontrol. The provisions of this article shall not apply to the following: (a) Space rent or space rent increases during a thirty -day period commencing upon the completion of a new mobile home space or mobile home space first rented after December 1, 1992. (b) Nothing in this article shall operate to restrict the rights of tenants and owners who have entered into agreements providing for a fixed term and/or a fixed rent for mobile home tenancies, beyond a twelve-month duration. (c) Nothing in this article shall operate to restrict the rents charged by mobile home park owner in the case of voluntary termination, abandonment of a mobile home in place, removal as a result of dealer or real estate broker/agent pull out, eviction, or sale of a mobile home owned by the mobile home park owner. (d) In the case of an in -place sale of a mobile home, except those that qualify as a family transfer under the California State Mobile Home Residency Code,the initial space rent to be charged the new mobile home tenant may be increased as follows: (4) Year �*° - Rents Raised to the Greater of the Two Alternatives. 2000 $488.00 or seller's rent + $25.00 2001 $488.00 + CPI rent increase for 2001 or selIer's rent + $25.00 2002 $488.00 + 2001 CPI rent increase + 2002 CPI rent increase or seller's rent + $25.00 (ef) CPI rent increase is calculated by applying the annual CPI rent increase to the $488.00. The CPI rate is per the data most recently available when calculated. The CPI increase applied in this table will be for each year from 2001 to the current year. Increases for subsequent years are calculated in the same manner. Increases are calculated in October of each year. A mobile home replaced due to a casualty loss and subsequently held for two (2) years will not be subject to supplementary rent increases such as in subsection 14.85.025 (f) of this article. A casualty loss includes loss by fire, earthquake, falling trees, and similar events. In all cases when a mobile home is replaced, except as stated in (c), above, the rent upon the first resale following replacement will increase one hundred dollars ($100.00) over the rent calculated in (d) in the year the sale occurs. (Ord. No. 1917, § I, 10-19-92; Ord. No. 2075, § I, 11-20-00) Sec. 14.85.030. Regulatory fee. For the sole purpose of reimbursing the Town for the costs of administering this article, there is hereby imposed on each mobile home space, subject to the provisions of this article, a regulatory fee in such amount as established by the Council by resolution from time to time which shall be paid annually when the mobile home park owner's business license fee is due. A mobile home park owner who fails to pay the fee within thirty (30) days after the Town mails its bill shall pay a twenty-five (25) percent penalty, plus an additional twenty-five (25) percent for every additional thirty (30) days the fee and penalties are not paid, and shall not be entitled to any rent increase until the full fee and penalties are paid. The Town Manager shall report to the Council in time for budget hearings each year the recommendation as to the amount of the (5) regulatory fee necessary to recover such costs. (Ord. No. 1917, § I, 10-19-92) Sec. 14.85.035. Violation; penalty. (a) Criminal penalty. No person shall demand, accept, receive or retain any rent in excess of the amounts allowed under this article. Any person may file a complaint regarding an alleged violation of this article with the Town's agent. The Town Attorney is authorized, in his/her discretion, to investigate and prosecute any such complaints. Any person found to have demanded, accepted, received or retained any rent in excess of the amounts allowed under this article is guilty of a misdemeanor. It shall also be a violation of this article for any person to evict or otherwise take retaliatory action against any tenant for exercising any rights afforded under this article. Any person violating this anti -retaliatory provision shall be guilty of a misdemeanor. (b) Civil action. Any person who demands, accepts, or retains any payment of rent, in violation of the provisions of this article shall be liable in a civil action to the person from whom payment is demanded, accepted or retained, for damages in the sum of three times the amount by which payment exceeds the maximum rent which could lawfully be demanded, accepted or retained. Any person who evicts or otherwise takes retaliatory action against any tenant for exercising any rights afforded under this article shall be liable to that tenant for the resulting civil damages. (Ord. No. 1917, § I, 10-19-92) Sec. 14.85.040. Waiver of rights. (a) Any tenant's waiver or purported waiver of rights under this article, prior to the time when said rights may be exercised, shall be void as contrary to public policy, except as provided in this section. (b) It shall be unlawful for an owner to require or attempt to require, as a condition of tenancy in a mobile home park, a tenant, or prospective tenant to waive in a lease or rental agreement, the rights granted to a mobile home tenant by this article. (c) It shall be unlawful for an owner to deny or threaten to deny a tenancy in a mobile home park to any person on account of such person's refusal to enter into a lease or rental agreement or any other agreement under which such person would waive the rights granted to a tenant by this article. (d) Nothing in this section shall preclude an owner or tenant, or prospective tenant, from entering into a lease or rental agreement described in section 14.85.025 provided that (6) such lease or rental agreement is not procured by a requirement that it be entered into as a conditi9A of tenancy in the mobile home park, and is not procured under a threat of denial of tenancy in the mobile home park. (Ord. No. 1917, § I, 10-19-92) Sec. 14.85.045. Permissible reasons for eviction. A tenant may refuse to pay any rent in excess of the maximum rent established pursuant to this article. The fact that the unpaid rent is in excess of the maximum rent shall be a defense in any action brought to recover possession of a mobile home space for nonpayment of rent or to collect the illegal rent. (Ord. No. 1917, § I, 10-19-92) Sec. 14.85.050. Extension of time; mutual agreement. By written agreement of the parties or upon application to the arbitrator and for good cause shown, the time frames provided for under this article may be extended. (Ord. No. 1917, § I, 10-19-92; Ord. No. 1973, § II, 5-24-94) Sec. 14.85.055. Duty of owner to provide copy of article and rental data. (a) It shall be the duty of every owner to provide a copy of this article to each tenant who rents or leases a space from the owner. A single copy will be provided each owner by the Town for reproduction by the owner. (b) All mobile home park owners shall cause documentation of the rent charged for each space in December 1985 and December 1992 to be filed with the Town's agent by February 1, 1993. document -and frk. h-tiu, TowLr'sag..iit In 1�nh hargcd in of the previous year, for each space occupied by a tenant -owned home. By October 1 of each year thereafter, the mobile home park owner will document and file with the Town's agent the rent charged for the current year and the proposed rent for the upcoming calendar year, for each space occupied by a tenant -owned mobile home. (c) Any owner that fails to provide the information required by this section shall not be entitled to any rent increase until the information is provided. The failure of one or more owners to provide the information shall not adversely affect the rights of any other owner or tenant of the other owner to the procedures and processes provided by this article. Any information so missing shall either be ignored or estimated by the Town or arbitrator, as applicable, so as to achieve the purposes of this article. (7) (Ord. No. 1917, § I, 10-19-92; Ord. No. 1973, § III, 5-2-94) Sec. 14.85.060. Severability. If any section, subsection, sentence, clause, phrase, or portion of this ordinance is for any reason held invalid or unconstitutional by any court of competent jurisdiction, such portion shall be deemed a separate, distinct and independent provision and such decision shall not effect the validity of the remaining portion thereof. (Ord. No. 1917, § I, 10-19-92) DIVISION 2. MOBILE HOME HEARING PROCESS Sec. 14.85.100. Hearing process --Established. There is established the mobile home rental dispute hearing process. Sec. 14.85.105. Space rent increase --Notice. (a) The mobile home park owner shall notify all affected tenants of any rent increase scheduled to take place during the following calendar year. All ftogiveirvir satin, day-taclr-cxlc.fdar y.,ai altin,tih tali-c ..ffcet chi dif&1 .,1t datcs. All notices shall be given at least ninety (90) days prior to the effective date of the rent raise on or about the same calendar day each year. The purpose of this requirement is to avoid the possibility of multiple disputes over rent increases for the same park within a given year. (This requirement does not apply to increases pursuant to L,i3titig h.aLs and leases identified in section 14.85.175.) (b) Any notice of space rent increase shall include notice of the tenant's right to participate in the rent review process and shall provide the business address and telephone number of the Town's agent. (c) The park owner shall, upon written request, provide each affected tenant with a list of all tenants with their respective space numbers who received a notice of rent increase. (Ord. No. 1917, § I, 10-19-92; Ord. No. 1973, § IV, 5-2-94) Sec. 14.85.110. Same --Limit on annual increases, The space rent of any mobile home space may not be increased more than once in any twelve (12) month period, except as provided in Section 14.85.025. (Ord. No. 1917, § I, 10-19-92) (8) Sec. 14.85.115. Same --Hearing required for supplemental rent increase. 11nLLlrt-as 1r i-s article, any > before nottcc of such rent mcrea Except as provided in this article, any space rent increase after December 6, 1992 that exceeds the CPI rent increase as defined in section 14.85.020 (e) of this article shall be deemed a supplemental rent increase and shall be subject to review under the hearing process. (Ord. No. 1917, § I, 10-19-92) Sec. 14.85.120. Hearing process --Submission of owner's petition. agent. 11 Any owner who seeks a supplemental rent increase shall notify all affected tenants in writing of the amount of the supplemental increase over the allowable rent increase, reasons for the requested supplemental increase, results of the Net Operating Income calculations, and/or explanation of capital improvement costs related to the supplemental rent increase request. It shall also set forth the time requirements for filing the tenant petition, the number of required signatures, and the mailing address and contact telephone number for the Town's agent. This notice shall be submitted to the Town's agent and serve as the owner's petition. Blank petitions for tenants opposing the supplemental rent increase shall also be provided with this petition and included in the notice sent to all tenants. (Ord. No. 1917, § I, 10-19-92) Sec. 14.85.125. Same --Submission of tenant's petition. fa) to cach affcctc,d tc I�QLIG[iv a iLasonablc opl.rvttunity to restorc scrvicc must be gcvLai kJ I 10111c pal K oavnci. �a) Submission of tenant 's petition disputing supplemental rent increase. Any tenant who wishes to limit any rent increase may file a tenant's petition with the Town's agent within (9) thirty (30) days of receiving a notice of supplemental rent increase. To be a validated petitiocaft trust be supported by at least twenty (20) percent of the affected tenants as determined by the petitions delivered to the Town's agent. The sole basis for such a petition shall be to request a reduction in a supplemental rent increase petition filed by owner. bL..2 Submission of tenant's petition for a reduction in service. A tenant who wishes to reduce any current rents on the basis of a reduction in service may file a petition with the Town's agent. Upon receipt, the Town's agent shall send a ballot to each affected tenant to determine his/her support for the petition. To be a validated petition it must be supported by at least twenty (20) percent of the affected tenants as determined by the ballots returned to the Town's agent within twenty (20) days of receipt of the ballot by tenant. The sole basis for such a petition shall be to compensate for a reduction in service as provided in division 4 of this article. Before filing a tenant's petition, written notice of the alleged service reduction and a reasonable opportunity to restore service must be given to the mobile home park owner. l) If a group of tenants seeks review, the affected tenants shall designate in writing to the Town's agent an individual to serve as the tenant representative for the purposes of receipt of all notice, correspondence, decisions and findings of fact required in this article, within ten (10) days of notice to affected tenants by the Town's agent of a validated tenant petition. The tenants, if they desire, may also designate more than one representative to serve as co -representatives or backup representatives. Service of notice upon the designated tenant representative will constitute adequate and sufficient notice to tenants who sigiicd the paitivii submitted petitions or ballots supporting a petition. Failure to designate a tenant representative within ten (10) days ofpetitiorr submittal- vi igi�ial notice by Town's agent that sufficient petitions have been received to proceed with this process will render the petition incomplete and the petitions will not be dismissed arec"cbrfot fling. The tenant representative or representatives shall be responsible for making reasonable efforts to communicate with the affected tenants to inform them regarding the status of the case and substantive proposals from the park ownership. Any ratification of a settlement proposal or any other decision determining the outcome of this process shall remain the prerogative of the affected tenants. The designated tenant representative or representatives shall, in consultation with Town's agent, conduct ratification votes or other similar processes to permit the affected tenants to make these decisions. (� A tenant's petition may include a request for audit and Net Operating Income (NOI) analysis for the preceding three (3) years; however, no such tenant -requested audit and analysis may be required more frequently than once in every three (3) years period. The auditor shall be selected by Town or its agent. The cost of such audit and analysis shall be paid by the Town from the regulatory fees collected. The full audit shall be confidential and presented to the arbitrator only. A summary, including at least income and expenses (10) by account and NOI analyses, shall be prepared by the auditor or designate and presented to the n gbile home park owner and tenant representative. Disclosure of any information not included in the summary shall be disclosed only as deemed necessary in the exclusive discretion of the arbitrator. (Ord. No. 1917, § I, 10-19-92; Ord. No. 1973, § V, 5-2-94) Sec. 14.85.130. Petitions --Form. (a) The form of the owner's and tenant's petition shall be prescribed by the Town's agent and must be accompanied by supporting material as prescribed by the Town's agent. An owner's petition shall contain the printed name and address (i.e. space number) of each tenant whose rent is being increased. Appended to the petition shall be a copy of the notice given by the park owner which indicated the date it was served. A-ppended-ttr the teY,ant 5-1ictit• n cfthm knaft's ncrticcto the mobile -home paik own,,r of that service -reduction. Appended to a tenant's petition alleging service reduction shall be a copy of the tenant's notice to the mobile home park owner of that service reduction. The petition shall be made under penalty of perjury and supporting documents shall be certified or verified as requested by the Town's agent. (b) All petitions received by Town's agent concerning similar issues at the same mobile home park will be merged at the Town agent's discretion. (Ord. No. 1917, § I, 10-19-92; Ord. No. 1973, § VI, 5-2-94) Sec. 14.85.135. Same --Time for filing. An ownt.,r's petition niust-Lc-filed at-kast-thirty (30) days IN -foie the first e€ftictiv, date of the -increase stated in t e-noti x--tu-tciialit. A twnautts must b . filed -within thirty (30) cal , daysafter-expiration of the re asanable time giverrto the mebilc home park owner to lecture s An owner's petition must be filed at least ninety (90) days before the first effective date of the increase stated in the notice/petition to tenant. A tenant'spetition disputing a proposed supplemental rent increase must be filed within thirty (30) days after receiving a notice of supplemental rent increase. A tenant'spetition alleging a service reduction must be filed within ninety (90) calendar days after expiration of the reasonable time given to the mobile home park owner to restore services. (Ord. No. 1917, § I, 10-19-92; Ord. No. 1973, § VII, 5-2-94) Sec. 14.85.140. Space rent increase; effective when. If an owner's petition is filed, the supplemental increase shall not take effect until the date specified on the petition or until a negotiated/arbitrated supplemental increase is agreed to during the hearing process. whichever is later. (Ord. No. 1917, § I, 10-19-92) Sec. 14.85.145. Hearing --Procedures. tp Parties. Parties to an owner's petition and a tenant's petition disputing a supplemental increase include the owner and all tenants affected by the proposed rental increase. Parties to a tenant's petition for service reduction include the owner and signatories of the petition or ballots. a.bitiatoi- hall -conduct a lac— ng open to represciitativcs of all parties. Timing of meetings. LU Tenant's petition disputing supplemental increase. Upon receipt of sufficient valid petitions by tenants disputing a supplemental rent increase, the time of the hearing process shall be as follows: a. Within ten days of selection of a tenant representative(s) as provided for in section 14.85.125 (c) of this article, the owner and tenant representative(s) shall hold a joint meeting_to determine whether the parties can resolve the rent increase issue prior to mediation or arbitration. The parties may request supportive conciliation input from the Town's agent. The mobile home park owner shall set a time and place for a meeting to be held on the mobile home park premises, giving the tenant spokesperson(s) at least seven (7) days' written notice of the time and place. b. If the parties have not resolved the dispute within ten (10) days after the joint meeting specified above in subparagraph a., the Town's agent shall set the case for a mediation session. The mediation session shall be held within twenty (20) days of the notice from the Town's agent, unless all (12) parties agree in writing to extend the deadline. The specific procedures for the mediation process shall be those set forth in section 14.85.415 of this article. c. If the mediation session fails to resolve this dispute. the mediator shall issue a declaration of impasse. Any party seeking arbitration of the dispute, must file a written request for arbitration with the Town's agent within ten (10) days of the notice of impasse. The actual arbitration hearing, will be held within thirty (30) days of the written request for arbitration, or as soon thereafter as is administratively possible to do so. Tenant 's petition alleging service reduction. Within thirty (30) days from the date a validated tenant's petition is received by the Town's agent per Section 14.85.125(b), the same procedures set forth above in subparagraph (1) shall apply. a. Notice for arbitration hearing. The Town's agent shall mail written notice to all parties at least fourteen (14) calendar days before the hearing. (c) NuttCt-. Tlic Town's agent shall grail writtcn noticc to all partics at least vctkndarda.ys bcfore-the-hearing: (d) Submittal of -evidence -Matt rials to be considc%d at the hearing mtht-b,, laggoi Shall malt tlleni a\'aio all pa g at least scvcn ay3 iif fe) b. Extensions. Extensions of time for the hearing process may be mutually agreed upon by both parties with the concurrence of the arbitrator. c. All evidence, briefs, or other submittals prepared by the parties for presentation at the arbitration hearing shall be served on the arbitrator and the opposing party or parties at least five (5) days prior to the date set for the arbitration hearing. The arbitrator shall decide any pre -hearing motions to exclude evidence or to continue a scheduled hearing, to issue a subpoena, or to address any other pre -hearing issues. Any such motions or other requests shall be served on the opposing party or parties at the same time they are submitted to the arbitrator. Upon a request from a party or parties, the arbitrator shall have the power to issue a subpoena for testimony at the hearing. Upon a request from a party or parties with a showing of good cause, the arbitrator shall have the power to issue a subpoena for the production of documents either at the hearing or prior to the hearing. (13) d. The Arbitrator shall have the power to continue a hearing date upon a showing of good cause. e. At the arbitration hearing, the tenant representative or representatives will present the case on behalf of the affected tenants either directly or through a designated representative or legal counsel. The owner will present the case on behalf of the owner either directly or through a designated representative or legal counsel. The arbitrator shall have the authority to determine who else may attend the hearing, based on the principles that the affected tenants should be permitted to attend, and that members of the public should have the opportunity to attend, but that the arbitrator retains the authority to maintain sufficient order and decorum to hear the case in a conducive environment. (Ord. No. 1917, § I, 10-19-92; Ord. No. 1973, § VIII, 5-2-94) Sec. 14.85.150. Same --Arbitrator's fee. The Town shall pay the arbitrator's fee from the regulatory fees. (Ord. No. 1917, § I, 10-19-92) Sec. 14.85.155. Same --Conduct. is hcarmg shall the proceeding. The hearing shall be conducted by an arbitrator, appointed as a result of the following procedure. The parties will be provided with a list of potential arbitrators with a minimum of three (3) choices. Eachparty will be given an opportunity to strike at least one name from the list within seven i7) days after receiving the list. The Town's agent shall appoint the arbitrator from the remaining name or names. Subject to the requirements of section 14.85.145, the arbitrator shall determine the admissibility of all evidence based on whether the evidence is relevant to any issue necessary to determine the petition or petitions at issue. (Ord. No. 1917, § I, 10-19-92) Sec. 14.85.160. Same --Determination. (a) Owner's petition. Based upon the evidence presented at the hearing, the arbitrator shall determine the extent to which the proposed supplemental rent increase is reasonable, in accordance with the factors set forth in section 14.85.200. The burden of proof regarding (14) such reasonableness shall be on the owner unless otherwise indicated. (b) Tenant's petition. Based upon the evidence presented at the hearing, the arbitrator shall determine if a service reduction has occurred and the monetary value thereof. The burden of proof to establish a service reduction and its monetary value shall be on the person or persons alleging reduction. pzl ging scn n a r�aut noii. (2) atialy3i3 pitpaiCd pursuant to the piuvisions of section 14.85.125 1La,�uabK i 1'111 as Cttti c1 14.85.245, it sprima (Ord. No. 1917, § I, 10-19-92; Ord. No. 1973, § IX, 5-2-94) Sec. 14.85.165. Hearing; determination; notification. Within twenty (20) days following the conclusion of the hearing, the arbitrator shall deliver to the Town's agent a written statement of determination and findings of fact upon which such determination is based. Such written determination shall include validation,refutation, or correction of any NOI or other calculations which represent a fundamental element of the supplemental rent increase request or service reduction allegation. The Town's agent shall cause copies of the determination and the findings to be mailed by regular first class mail to all parties. (Ord. No. 1917, § I, 10-19-92; Ord. No. 1973, § X, 5-2-94) Sec. 14.85.170. Increase determined not reasonable; remedies. Any rent increases collected by a mobile home park owner pursuant to a CPI or supplemental increase, or which are subject to a service reduction, which are determined to be unjustified by a final settlement agreement or arbitrator's award, wl,icl1 is the subject of a tenant's , shall, within ninety (90) days of said settlement or determination be refunded to the affected tenants or if not refunded during said period, credited against all rent otherwise immediately due thereafter until fully offset, unless specified otherwise in the settlement or arbitration award. ,ithei 'mined to .Any rental increase which has not been collected during the pendency of a rental increase or service reduction case and which is determined by a final settlement or arbitrator's award to be justified shall be due and payable from all affected tenants within ninety (90) days after said settlement or award, unless specified otherwise in the settlement or arbitration award. (15) (Ord. No. 1917, § I, 10-19-92; Ord. No. 1973, § XI, 5-2-94) Sec. 14.85.175. Determination; applicability. The determination made under the provisions of this article shall be effective with respect to all affected mobile home park spaces, unless the tenant of such space has a written lease which meets the criteria of Civil Code Section 798.17, with the owner which otherwise sets forth the rights and obligations of the parties with respect to rent. (Ord. No. 1917, § I, 10-19-92; Ord. No. 1973, § XII, 5-2-94) Sec. 14.85.180. Determination and appeal. The determination of the arbitrator shall be final. Any party disputing the determination and findings may seek review pursuant to Sections 1094.5 and 1094.6 of the California Code of Civil Procedure. Section 1094.6 expressly applies to proceedings under this article. (Ord. No. 1917, § I, 10-19-92; Ord. No. 1973, § XIII, 5-2-94) DIVISION 3. CRITERIA FOR EVALUATING REASONABLENESS OF SUPPLEMENTAL RENT INCREASES Sec. 14.85.200. Determination of reasonableness. In determining the reasonableness of a supplemental rent increase, the arbitrator shall consider this article's purpose to permit mobile home park owners a just and reasonable return while protecting tenants from arbitrary, capricious or unreasonable rent increases. The arbitrator shall consider the following factors: (a) Fair rent return (Net Operating Income Approach set out below). (b) Changes in the consumer price index. (c) The rent lawfully charged for comparable mobile home spaces in the Town of Los Gatos. (d) The history of rent increases in the previous five (5) years. (e) The completion of any capital improvements, maintenance, or rehabilitation, the cost thereof, including cost of materials, labor, construction interest, permit fees, and other items as the arbitrator deems appropriate. These costs will be limited to an amount equal to the annual depreciation expense as allowed in section 14.85.240. Once the capital improvement has been fully depreciated, such expenses shall be excluded from the (16) calculation of net operating income. -41 (f) Changes in property taxes or other taxes related to the mobile home park. (g) Changes in the utility charges for the mobile home park paid by the appl«.aiit mobile home park owner and the extent, if any, of reimbursement from the tenants. (h) Changes in reasonable operating and maintenance expense. (i) The need for repairs caused by circumstances other than ordinary wear and tear. (j) The amount and quality of services provided by the appin,aiit mobile home park owner to the affected tenant including the value of service reductions as determined by division 4 of this article. (Ord. No. 1917, § I, 10-19-92) Sec. 14.85.205. Fair return rent increases. It is expected that the CPI rent increase will provide the owner with a fair and reasonable return. However, in the event that the CPI rent increase does not provide the owner with a fair and reasonable return, the owner may request a supplemental rent increase. (Ord. No. 1917, § I, 10-19-92) Sec. 14.85.210. Presumption of fair base year net operating income. For the purposes of determining the rent increase necessary to provide the owner with a fair and reasonable return, it shall be presumed that the Net Operating Income, as described below, provided the owner with a fair and reasonable return in the base year. (Ord. No. 1917, § I, 10-19-92) Sec. 14.85.215. Base year. (a) Except as provided in subsection (b) of this section, base year means the calendar year 1985. (b) For spaces which were exempt from the provisions of this article pursuant to a rental agreement as described in section 14.85.025(b) and which are subject to the provisions of this article because of the expiration or other termination of such rental agreement, base year means the last twelve (12) months of the term of the rental agreement. (Ord. No. 1917, § I, 10-19-92) (17) Sec. 14.85.220. Determination of base year Net Operating Income. The base year Net Operating Income shall be determined by calculating the NOI per space in the base year for each Los Gatos mobile home park and averaging them. (Ord. No. 1917, § I, 10-19-92) Sec. 14.85.225. Rebuttal of fair Net Operating Income presumption. Evidence to rebut the presumption of fair and reasonable return based upon the Base Year NOI may be presented during hearing on a petition and the arbitrator may adjust the Base Year NOI upon making at least one of the following findings: (a) The owner's operating expenses in the base year were unusually high or low in comparison to other years. In such instances, adjustments may be made in calculating operating expenses so the base year operating expenses reflect average expenses for the property over a reasonable period of time. The arbitrator shall consider the following factors in making this finding: (1) Extraordinary amounts were expended for necessary maintenance and repairs. (2) Maintenance and repair were below accepted standards and caused significant deterioration in the quality of services provided. (3) Other expenses were unreasonably high or low notwithstanding the application of prudent business practices. (b) The owner's operating expenses in the base year inadvertently omitted expenses actually paid, or included improper expenses. (c) The gross income during the base year was disproportionate. In such instances, adjustments may be made in calculating gross income consistent with the purposes of this article. The arbitrator shall consider the following factors in making this finding: (1) The gross income during the base year was lower than it might have been because some tenants were charged reduced rent. (2) The gross income during the base year was significantly lower than normal because of the destruction of the premises and/or temporary eviction for construction or repairs. (Ord. No. 1917, § I, 10-19-92) (18) Sec. 14.85.230. Determination of Net Operating Income. (a) The Net Operating Income for the base year shall be determined by: (1) Determining the annualized gross income by totaling the rents collected during the base year per section 14.85.235. (2) Determining the operating expenses during the base year per section 14.85.240. (3) Subtracting the operating expenses from the annualized gross income. (b) The NOI for years other than the base year shall be determined by: (1) Determining the annualized gross income by totaling the rents for the twelve- month period ending within ninety (90) days prior to the notice of a rent increase or service reduction ("the relevant year"). (2) Determining the operating expenses during the relevant year. (3) Determine annualized park NOI by subtracting operating expenses from annualized gross income. (Ord. No. 1917, § I, 10-19-92) Sec. 14.85.235. Calculation of gross income. (a) For the purposes of determining the Net Operating Income, Gross Income shall be the sum of the following: (1) Gross rents calculated as gross rental income at one hundred (100) percent occupancy of all spaces, adjusted for uncollected rents as provided in subsection (b) of this section; (2) Income from any laundry facilities and parking fees; (3) Costs of utilities paid directly to the owner by the mobile home tenants; (4) All other income or consideration received or receivable in connection with the use or occupancy of the mobile home space including the regulatory fee required by section 14.85.030; and (5) Proceeds from a sale of a mobile home park asset which exceed the book value of the asset. If an asset is conveyed from the mobile home park to another entity via a (19) non -sales transaction, then, for this subparagraph, the transaction would be onsidered a sale and the sales price would be set at the fair market value of the asset. (b) Gross rents shall be adjusted for uncollected rents due to vacancy of mobile home spaces and bad debts to the extent such are beyond the control of the owner. No such adjustment shall be greater than three (3) percent of gross rents unless justification for a higher rate is demonstrated by the owner. (c) Gross income shall not include rent from mobile homes owned by the park owner which exceeds the average space rent. It shall be deemed that the rent for spaces occupied by mobile homes owned by the park owner or vacant spaces is equal to the average space rent of all other occupied spaces in the park. This rent shall be included in the gross rents as calculated in subpart (a)(1) above. (Ord. No. 1917, § I, 10-19-92; Ord. No. 1973, § XIV, 5-2-94) Sec. 14.85.240. Calculation of operating expenses. (a) For the purposes of determining Net Operating Income, operating expenses shall include the following: (1) Costs of operation and maintenance. (2) Utility costs to the extent they are not included in costs of operatingion and maintenance. (3) Owner performed labor compensated at reasonable hourly rates. a. No owner performed labor shall be included as an operating expense unless the owner submits documentation showing the date, time, and nature of the work performed. b. There shall be a maximum allowed under this provision of five (5) percent of gross income unless the owner shows greater services were performed for the benefit of the tenants. (4) License, registration fees, and the regulatory fee required by section 14.85.030 as required by law to the extent not otherwise paid by the residents. Expenses of capital improvements (either improvements to existing capital items or acquisition of additional fixed assets) where all of the following conditions are met: (5) (20) a. The capital improvement is made at a direct cost of not less than tw five thousand dollars ($5,000.00). b. The costs, less any insurance proceeds or other applicable recovery, are averaged on a per space basis for each space actually benefitted by the improvement. Infrastructure improvements shall be deemed a benefit to all park tenants unless a mobile home or group of mobile homes receive a higher level of service as a result of the improvement, in which case, costs will be apportioned on a pro rata basis. c. The annual expense is limited to one -fifth of the cost of the capital improvement or the annual depreciation as calculated by generally accepted accounting principles of the capital improvement whichever is less. d. The costs do not include any additional costs incurred for property damage or deterioration resulting from unreasonable delay in the undertaking or completion of any repair or improvement. e. If a capital improvement is removed from service, then the related depreciation shall discontinue accrual to operating expenses. Depreciation for a capital improvement shall also discontinue accrual to operating expenses when the book value of the capital improvement is reduced to the salvage value or zero, whichever is greater. Operating expenses as calculated by this section are to include repair and maintenance work on all spaces up to and including the utility pedestal. In the event gross rents are reduced by greater than the three (3) percent reduction cap allowed in subsection 14.85.235 (b), then a pro rata portion of the expenses will be reduced unless park owner can demonstrate that park has continually made a good faith effort to rent spaces at no more than market rental rates. All repair and maintenance on any spaces beyond the utility pedestal are not to be included in operating expenses. (b) Operating expenses shall not include the following: (1) Mortgage principal or interest payments or other debt service costs and park lease costs. (2) Any penalties, fees or interest payments or other debt service costs and park lease costs. (21) (2-3) Any penalties, fees or interest assessed or awarded for violation of any provision -.a this article or of any other provision of law. (34) Legal fees except as specified in subsection (c) of this section. (45) Political contributions. (56) Any expenses for which the owner has been reimbursed by any utility rebate or discount, security deposit, insurance settlement, judgment for damages, settlement or any other method or device. (67) Costs arising from operation and maintenance, improvement, and acquisition of mobile homes owned by the park owner. (�8)7.xpenses of a capital improvement after the improvement is fully depreciated. (89) Rehabilitation costs resulting from a work order issued by a public agency unless to correct conditions caused by a natural disaster. (c) Legal expenses allowed in the calculation of operating expenses shall include: attorneys' fees and costs incurred in connection with successful good faith attempts to recover rents owing, successful good faith unlawful detainer actions not in derogation of applicable law, and legal expenses necessarily incurred in the normal operation of the park to the extent such expenses are not recovered from adverse or other parties. Attorneys' fees incurred in relation to the administrative or judicial proceedings in connection with this article are not allowable as operating expenses. (Ord. No. 1917, § I, 10-19-92; Ord. No. 1973, § XV, 5-2-94) Sec. 14.85.245. Fair and reasonable return. An owner has a fair and reasonable return when the owner's relevant year NOI is equal to the amount required for the owner to maintain the base year NOI adjusted annually by the consumer price index, plus increases allowed by vacancy as set forth in section 14.85.025(d). (Ord. No. 1917, § I, 10-19-92) Sec. 14.85.250. Determination of allowable supplemental rent increase. (a) The arbitrator shall set the amount of any supplemental rent increase in an amount not to exceed that required to provide the owner with a fair and reasonable return. (b) In determining the supplemental rent increase required to provide the owner with a fair (22) and reasonable return, the arbitrator shall determine: (1) The fair and reasonable return in accordance with section 14.85.245. (2) The gross income required to produce the fair and reasonable return. (3) The rent increase needed to produce the required gross income. (c) Rent increases based upon costs of capital improvements shall apply only to those spaces benefited by the capital improvements in accordance with section 14.85.240(a)(5)b. (d) Rent increases based upon increased operating expenses shall apply only to those spaces for which such increased operating expenses were incurred. (Ord. No. 1917, § I, 10-19-92) DIVISION 4. CRITERIA FOR DETERMINING SERVICE REDUCTION Sec. 14.85.300. Basic service level. The mobile home park owner is required to furnish to the tenant a basic level of housing services, herein called the "basic service level". The basic service level is established by: (a) Civil Code Section 1941.1 and 1941.2 and other applicable codes and statutes; (b) The mobile home park owner's implied warranty of habitability; (c) Express or implied agreement between mobile home park owner and tenant; (d) The condition of improvements, fixtures and equipment considering; (1) The nature and quality of original construction, fixtures, and equipment; (2) The age; (3) The condition at the beginning of the tenancy; The mobile home park owner's policies of operation and maintenance, repair and replacement communicated to the tenant at the beginning of the applicable term of tenancy. (Ord. No. 1917, § I, 10-19-92) (e) (23) Sec. 14.85.305. Service reductions. A service reduction occurs when the mobile home park owner has breached the obligation to furnish the Basic Service Level impairing the tenant's use of the premises. (Ord. No. 1917, § I, 10-19-92) Sec. 14.85.310. Allegations of service reductions. Each allegation of a service reduction in a tenant's petition shall be separately stated and include: (a) The prior level of service; (b) The specific changes in the prior level of service; (c) The date the service reduction was first noticed by the tenant; (d) The cause of reduction of service level, if known; (e) The mobile home park owner's response to the tenant's notice; (f) The mobile home park owner's effort to improve or correct the service reduction; (g) The status as of the date the petition is filed. (Ord. No. 1917, § I, 10-19-92) Sec. 14.85.315. Determining value of unreasonable service reductions. The arbitrator shall determine the monetary value to be assigned to a service reduction by applying the following standards: (a) The arbitrator shall determine the percentage reduction in usability of the mobile home space and common areas caused by the service reduction considering: (1) The area affected; (2) The amount of time the tenant is exposed to the condition; (3) The degree of discomfort the condition imposes; (4) The extent to which such a condition causes tenants to find the premises (24) uninhabitable. (b) The date reduction in service began. (c) The arbitrator shall apply the percentage reduction to the monthly rent, divide by thirty (30), and multiply by the number of days commencing from the date service reduction began to the date of restoration of the service to the Basic Service Level. (Ord. No. 1917, § I, 10-19-92; Ord. No. 1973, § XVI, 5-2-94) Sec. 14.85.320. Conclusive evidence of service reduction. The results of an audit, prepared pursuant to section 14.85.125, which demonstrate that a mobile home park owner's three year average NOI exceeds a fair and reasonable return, as defined by section 14.85.245, by more than eight (8) percent, shall be conclusive evidence of a service reduction. In such an event, rents shall be reduced to result in a NOI not to exceed eight (8) percent more than a fair and reasonable return. (Ord. No. 1917, § I, 10-19-92) DIVISION 5. RESOLUTION OF NON -RENTAL DISPUTE Sec. 14.85.400. Resolution of non -rental disputes. This division is provided to enable tenants and park owners to resolve disputes when there is no concurrent issue concerning increase in or the amount of rent. If at any time while the non -rental dispute remains unresolved there is a rent dispute, then the non -rental dispute issues shall be resolved separately in accordance with this section and shall not be consolidated with the rent dispute proceeding. (Ord. No. 1917, § I, 10-19-92) Sec. 14.85.405. Unsupervised efforts of the parties. (a) Notice of objection. One or more tenants, or the mobile home park owner, may at any time file a written objection with the other, as to maintenance, capital improvement, housing services, or any other concern related to the physical condition or habitability of the mobile home park. (b) Informal meeting. Within ten (10) days after service of the written objection from a tenant, the mobile home park owner shall set a time and place for a meeting to be held on the mobile home park premises, giving the tenant at least seven (7) days' notice of the (25) time and place. In the case of a written objection filed by the park owner, a time and place for discussion shall be set forth in the notice. The purpose of this meeting shall be to allow the parties the opportunity to resolve any differences they may have concerning non -rental disputes. The meeting may be continued to another time and place agreeable to the parties. The parties may agree to consolidate more than one notice of objection in the same discussion. (Ord. No. 1917, § I, 10-19-92; Ord. No. 1973, § XVII, 5-2-94) Sec. 14.85.410. Conciliation. If the informal meeting does not resolve the dispute to the satisfaction of both parties, the dissatisfied party or parties may, within ten (10) days of the date of the meeting, file with the Town's agent a petition for conciliation. Conciliation in this sense is limited intervention in the dispute, using letters and telephone and personal conversation to attempt to explain to each party the position of the other and to urge rational agreement. If the Town's agent determines after a reasonable time that conciliation is not likely to resolve the dispute, it shall notify the parties in writing. (Ord. No. 1917, § I, 10-19-92) Sec. 14.85.415. Mandatory Inv in loll Dispute Resolution. (a) Petition for formal mandatory mediation. Within ten (10) days of notice of failure of conciliation from the Town's agent, either party may file with the Town's agent a petitivrr written request for mediation of non -rent dispute. (b) Assignment of mediator and hearing date. Upon receipt of a petition for mediation, the Town's agent shall assign a mediator. The Town's agent shall set a date for mediation hearing no sooner than ten (10) nor later than thirty (30) days after the mediator is assigned. The parties shall be notified in writing by the Town's agent of the date, time, and place of the mediation hearing which shall be set to maximize the convenience of the parties. (c) ,%fecheittorl heal irlg. (1) Ct,rditc - -1n,-partics ivay offer oral and docuineirtaiy-Lv ich.nct at -tlre-«rediation appear-at-the-hearing7-The-mediator -mar order one-emtirrttanet--uf-notmore-than tcli (-I 8) day. The petitioner shall havL the first opportunity to present uf sae}r dtslruted issue. 2) Ter,nlncrtrun. Ott ally ling thL tile diati iii-hearing pi (26) (3) antn tite proctLstrtg upon -a aeteimt LLLiiliiiiatro1rtl tlil�rasS . Tllc parties attvtr—c&iaekrt good at of a or in waiting if the deteiminatio,i is made if ed-vf this d�eision in t�� ��tr uttt3idt- thL p csenec of tl,e parties. Resolution by agre'entertt-of he. pt , tte3. In the evr_-_T t thTat parties rcsolvc the UisptttLel-issues, the nn,dia ur shall prepare a nntnoranduin of agiceinc►it foi tlLL (4) Resolution -by the mediator. If thcpartics do not icsolvc the -disputed issues at the (5) tl�e nncdiatol shall within ten (10) days tcotify the paitics i,1 wiitjug of tl1L the-mediattel-binding-unfess-eitherparty-fries-a-writterrrej-ectioir of the medintorts-deterrnirration-within-tentl-0-)-eirs7-partyas-rejeetiorr shall -terminate 1I. Recu d of the mediation. The file a record of tltc mediation with thL plUecLding. Lc) Mediation. W Introduction and opening statement. The mediator will introduce him/herself, identify all attendees, circulate a sign -in sheet, and briefly explain the mediation process. The explanation will include any ground rules to be observed. The rules of confidentiality will also be explained, as well as the exceptions to confidentiality noted below for any agreement reached or in the event of impasse. The parties will be asked to sign a confidentiality agreement. t2) Presentation by the parties. The parties will be given full opportunity to present any documents or verbal statements which they chose to submit on those issues which the parties desire to discuss. The parties will be encouraged to make comments which are clear, concise, and relevant. All parties in attendance will be given their turn to make presentations. (3) Private sessions. At any point in the process that the mediator believes it would advance the process, the mediator may meet separately in a caucus with the parties. The mediator will notify all participants that statements made in the caucus are confidential and will not be disclosed to the other parties, unless given permission to do so by the relevant party during the caucus meeting. (27) Voluntary agreement. If the parties arrive at a voluntary agreement, the mediator „kill summarize the resolution on a written agreement form, to be signed by all relevant parties and the mediator. The resulting agreement will not be confidential, unless all parties agree in writing that the agreement will remain confidential. The parties and the mediator are encouraged to conclude the mediation in one session, but if the mediator in his/her discretion concludes that an additional session will be helpful to resolution, and the parties agree to attend an additional session, an additional session will be scheduled. In the event of any impasse between the parties on the terms of a voluntary agreement, the mediator will seek to reach an agreement between the parties on the list of issues remaining to be decided by binding arbitration. (/) In the event of impasse, the mediator will notify the Town's agent within five days of the hearing. The notification will be held by the Town or its agent as a confidential document and will contain only the following information, said information being deemed an exception to the rule of confidentiality: a. Identification of all attendees; b. A statement that impasse was reached; c. If applicable, any agreement by the parties which defines the issues to be subject to binding arbitration. If a subsequent binding arbitration is held, that hearing shall be conducted on a de nova basis without any reference to, or utilization of any content of the mediation hearing by any party to the arbitration, except as limited elsewhere in the applicable ordinance or regulations. If the parties have reached agreement on the issues to be determined by the arbitration hearing, the arbitrator shall be bound by that agreement. In the absence of an agreement between the parties listing the issues, the arbitrator shall determine the issues to be decided. (d) Arbitration: (1) If the mediation process fails to resolve the dispute, any party to the case may request arbitration by filing a written request for arbitration with the Town's agent. Said request must be filed within thirty (30) days of the declaration of impasse by the mediator, or if mediation is waived by the parties, within sixty (60) days after the initial filing of the petition. al Once a timely written request for arbitration has been received, the arbitration process shall be governed by the arbitration provisions of sections 14.85.145 through 14.85.165 of this article. (Ord. No. 1917, § I, 10-19-92) (28) SECTION II This ordinance wasintroduced at a regular meeting of the Town Council of the Town of Los Gatos on July 15, 2002, and adopted by the following vote as an ordinance of the Town of Los Gatos at a regular meeting of the Town Council of the Town of Los Gatos on , 2002. This ordinance takes effect thirty (30) days after it is adopted. COUNCIL MEMBERS: AYES: NAYS: ABSENT: ABSTAIN: SIGNED: MAYOR OF THE TOWN OF LOS GATOS LOS GATOS, CALIFORNIA ATTEST: CLERK OF THE TOWN OF LOS GATOS LOS GATOS, CALIFORNIA N:\CSDITCRPTS\Resolutions\mobilehomeord.wpd, rev. July 5, 2002 (29) s.—,/ s,...1 C Sfl ) ORIGINATING DEPT: COUNCIL AGENDA DATE: 7- COUNCIL AGENDA ITEM:J SUBJECT: OFFICE OF THE TOWN CLERK ORDINANCES & RESOLUTIONS Number: Date of Adopt: RESOLUTION COUNCIL ACTION: AYES: NAYS: ABSENT: ABSTAIN: (Le_ t P., 2 % Number: Date of Intro: Date of Adopt: ZONE CHANGE: COUNCIL MEMBERS NAMES: Steven Blanton, Sandy Decker, Steve Glickman, Joe Pirzynski, Mayor (or Chairman) RANDY ATTAWAY ORDINANCES and RESOLUTIONS MUST BE RETURNED TO TOWN CLERK BY WEDNESDAY AT 12 NOON. ORDINANCES MUST BE READY FOR IMMEDIATE PUBLICATION CLK:FORMS-RESO-ORD