Item 17 Staff Report Adopt Ordinance Amending Article 14.85 Regarding Mobilehome Rental and Other Tenant/Landlord DisputesCOUNCIL AGENDA
DATE: 4/4/94
ITEM NO. /
TOWN OF LOS GATOS
COUNCIL AGENDA REPORT
DATE: MARCH 24, 1994
TO: MAYOR AND TOWN COUNCIL
FROM: LARRY E. ANDERSON, TOWN ATTORNEY//O
SUBJECT: ADOPT ORDINANCE AMENDING ARTICLE 14.85 REGARDING MOBILEHOME RENTAL
AND OTHER TENANT/LANDLORD DISPUTES
RECOMMENDATION:
1. Adopt the attached ordinance which was introduced at the Town Council meeting of March 7, 1994.
2. Instruct the Clerk to publish a summary no more than 15 days after adoption.
PREPARED BY: LARRY E. ANDERSON, TOWN ATTORNEY
LEA:yfg 3/30/94 8:12 am
DISK020\A:\MOBILEHO.TCR File #1408-05
Attachments: Ordinance
Distribution:
Rent Advisory Committee:
William Kraus, 484 Woodland Avenue, #17, Los Gatos 95030 (tenant)
Lisa Meddows, 135 Riviera Drive, #525, Los Gatos 95030 (tenant)
Susan Fish, 16070 Greenridge Terrace, Los Gatos 95032 (neutral member, chair)
William Errico, 14690 Hancock Court, Los Gatos 95030 (property owner)
Clovis Mirassou, 5496 Amby Drive, San Jose 95124 (property owner)
Kathy Thibodeaux, Tri-County Apartment Assoc., 792 Meridian Way, Ste. A, San Jose 95128
Information and Referral Services, Harryette Shuell, 1245 So. Winchester Blvd., #200, San Jose 95128
Barbara Hoist, same address with I&R
Jack Cole, 14685 Oka Road, Los Gatos 95030
Ann Mirassou, 147 Old Orchard Drive, Los Gatos 95030
Dorothy and Cliff Burrows, 484 Woodland Avenue, Los Gatos 95030
Paul Deffebach, Western Mobilehome Assoc., 307 South B St., #5, San Mateo, CA 94401
Reviewed by: RAW._ Manager Clerk Finance Treasurer
COUNCIL ACTION/ACTION DIRECTED TO:
ORDINANCE
ORDINANCE OF THE TOWN OF LOS GATOS
AMENDING ARTICLE 14.85 REGARDING
MOBILEHOME RENTAL AND OTHER TENANT/LANDLORD DISPUTES
THE TOWN COUNCIL OF THE TOWN OF LOS GATOS DOES HEREBY
ORDAIN:
SECTION I
Section 14.85.020 of the Town Code is hereby amended to read as follows:
Section 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) 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.
(b) Arbitrator. An individual designated by the Town Manager or the Town
Manager's designee to conduct the hearing procedures of this article and to
determine the reasonableness of rent increases.
(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 or 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.
(e) CPI rent 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.
(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.
(g) 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.
(h) 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.
(i) 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.
(j) 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.
(k) Owner or Mobile home park owner. The owner, lessor, operator or manager
of a mobile home park in the Town.
(1) Owner's petition. A petition filed by an owner seeking a supplemental rent
increase.
(m) 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.
(n) 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.
(o) Space rent. The total consideration, including any bonus, fees, surcharges,
benefits or gratuity demanded or received in connection with the use or
occupancy of a mobile home space in 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.
2
(p) 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.
(q) 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.
(r) Tenant's petition. A petition filed by one or a group of affected tenants and
supported by at least 20 percent of affected tenants.
(s) Town's agent. The individual or agency designated by the Town council to
perform the services defined herein.
SECTION II
Section 14.85.050 of the Town Code is hereby amended to read as follows:
Section 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.
SECTION III
Subsections 14.85.055(b) and (c) of the Town Code are hereby amended to read as
follows:
Section 14.85.055. Duty of owner to provide copy of article and rental data.
(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. By February 1 of each year thereafter, the mobile home park owner will
document and file with the Town's agent the rent charged in December of the previous
year, for each space occupied by a tenant -owned 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
3
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.
SECTION IV
Section 14.85.105 of the Town Code is hereby amended to read as follows:
Section 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 notices shall be
given on the same day each calendar year although increases may take effect on different
dates. 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 existing leases and leases identified in Section 14.85.175 below.
(b) Any notice of space rent increase shall include notice of the tenant's right to
participate in the rent review process. The notice shall include the address and telephone
number of the Town's agent. This can be included conspicuously in the rent increase notice
or done separately at the same time and manner as the rent increase notice. The
recommended wording is:
"You have the right to use the Rental Dispute Hearing Process. For further
information, contact:
[Insert current name, address, and phone number of Town Rental Mediation
Program.]"
(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.
4
SECTION V
Section 14.85.125 of the Town Code is hereby amended to read as follows:
Section 14.85.125. Same --Submission of tenant's petition.
(a) Any tenant who wishes to limit any rent increase or to reduce any current
rents may file a tenant's petition with the Town's agent. Upon receipt, the Town's agent
shall send a ballot to each affected tenant to determine her/his support for the petition.
To be a valid petition, it must be supported by at least twenty (20) percent of the affected
tenants as determined by ballots received. The sole basis for such a petition shall be to
compensate for a reduction in service. 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.
(b) 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 twenty-eight (28) days of original petition submittal. Service of notice
upon the designated tenant representative will constitute adequate and sufficient notice to
the tenants who signed the petition. Failure to designate a tenant representative within
twenty-eight (28) days of original petition submittal will render the petition incomplete and
the petition will not be accepted for filing.
(c) 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 audit and analysis may
be required more frequently than every three (3) years. 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 shall be prepared and presented to the mobile 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.
5
SECTION VI
Section 14.85.130 of the Town Code is hereby amended to read as follows:
Section 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. Appended to the
tenant's petition 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.
SECTION VII
Section 14.85.135 of the Town Code is hereby amended to read as follows:
Section 14.85.135. Same --Time for filing.
An owner's petition must be filed at least thirty (30) days before the first effective
date of the increase stated in the notice to tenant. A tenant's petition must be filed within
thirty (30) days after expiration of the reasonable time given to the mobile home park
owner to restore services.
SECTION VIII
Section 14.85.145 of the Town Code is hereby amended to read as follows:
Section 14.85.145. Hearing --Procedures.
(a) Parties. Parties to an owner's petition include the owner and all tenants affected
by the proposed rental increase. Parties to a tenant's petition include the owner and
affected tenants.
6
(b) Time. Within sixty (60) days from the date a petition is received by the Town's
agent, an arbitrator shall conduct a hearing open to representatives of all parties.
(c) Notice. The Town's agent shall mail written notice to all parties at least twenty
(20) days before the hearing.
(d) Submittal of evidence. Materials to be considered at the hearing must be logged
with the Town's agent at least twelve (12) days in advance of the hearing who shall make
them available to all parties to the hearing at least seven (7) days in advance of the hearing.
(e) Extensions Extensions of time for the hearing process may be mutually agreed
upon by both parties with the concurrence of the arbitrator.
SECTION IX
Section 14.85.160(b)(2) of the Town Code is hereby amended to read as follows:
Section 14.85.160. Same --Determination.
(b)
(2) If an audit and analysis prepared pursuant to the provisions of section
14.85.125 indicates that a park's NOI exceeds five (5) percent more
than a fair and reasonable return as defined by section 14.85.245, it
shall be considered prima facie evidence of a service reduction and the
burden of proof shall switch to the park owner to establish that a
service reduction has not occurred.
SECTION X
Section 14.85.165 of the Town Code is hereby amended to read as follows:
Section 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. The Town's agent shall cause copies of the
determination and the findings to be mailed by regular first class mail to all parties.
7
SECTION XI
Section 14.85.170 of the Town Code is hereby amended to read as follows:
Section 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 which is the subject of a tenant's petition and later determined to
be unjustified because of a service reduction, shall, within ninety (90) days be either
returned to the tenants or credited to future rental charges at the option of the mobile
home park owner.
SECTION XII
Section 14.85.175 of the Town Code is hereby amended to read as follows:
Section 14.85.175. Determination; applicability.
The determination made under the provisions of this article shall be effective with
respect to all mobile home park spaces, unless the tenant of such space has a written lease
with the owner that meets the criteria of Civil Code Section 798.17 and that otherwise sets
forth the rights and obligations of the parties with respect to rent.
SECTION XIII
Section 14.85.180 of the Town Code is hereby amended to read as follows:
Section 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.
SECTION XIV
A new subsection 14.85.235(a)(5) is added to the Town Code to read as follows:
Section 14.85.235. Calculation of gross income.
8
(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 non -sales transaction, then, for this
subparagraph, the transaction would be considered a sale and the sales
price would be set at the fair market value of the asset.
SECTION XV
Subsections 14.85.240(a)(4) and (a)(5)(e) of the Town Code are hereby amended to
read as follows:
Section 14.85.240. Calculation of operating expenses.
(a)
(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.
(5)
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.
SECTION XVI
Subsection 14.85.315(c) of the Town Code is hereby amended to read as follows:
Section 14.85.315. Determining value of unreasonable service reductions.
(c) The arbitrator shall apply the percentage reduction to the monthly rent,
divide by thirty (30), and multiply by the number of days commencing
9
from the date service reduction began to the date of restoration of the
service to the Basic Service Level.
SECTION XVII
Section 14.85.405 of the Town Code is hereby amended to read as follows:
Section 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
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.
SECTION XVIII
This ordinance was introduced at a regular meeting of the Town Council of the
Town of Los Gatos on , 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
10
of Los Gatos on
it is adopted.
COUNCIL MEMBERS:
AYES:
NOES:
ABSENT:
ABSTAIN:
SIGNED:
ATTEST:
. This ordinance takes effect thirty (30) days after
MAYOR OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
CLERK OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
CSD08:A:\ORDS\CS030794,001
11
ORDINANCE AMENDING ARTICLE 14.85 REGARDING MOBILE HOME
RENTAL AND OTHER TENANT/LANDLORD DISPUTES
An amended Article 14.85 was introduced by Council on March 7,
1994. Revisions clarify and streamline dispute resolution process.
The "net operating income" approach to rent adjustments
calculations remains in place. Ordinance amendments are
highlighted below.
Inconsistent references to "calendar" and "working day"
were changed throughout to "day", as defined in the Town
Code (24-hour period from midnight to midnight).
• Procedural timelines were changed throughout to
incorporate the now consistent reference to "day"_
• 14.85.020 Definitions. Tenants Petition The
definition was changed to increase the required
supporters for a tenant's petition from at least one
affected tenant to at least 20 percent.
• 14.85.055 Duty of Owner to Provide Copy of Article and
Rental Data. Paragraph (c) added to allow rental dispute
procedures to be implemented even if rental information
from the other mobile home park owner is not available.
14.85.125 Hearing Process --Submission of Tenant's
Position. Revised to clarify purpose and processing of
tenant's petition and specify that the Town or its agent
selects the auditor, as necessary. The section was also
revised to require that petition support be determined
through a ballot process conducted by the Town or its
agent.
• Affected tenants shall designate a tenant representative
within 28 days.
CSDOI:A:\memos\summary.mob
March 21, 1994
Los Gatos, California
MINUTES OF MARCH 7, 1994 (04.V)
Motion by Mr. Blanton, seconded by Mrs. Benjamin, that Council approve the Minutes of March
7, 1994 as submitted. Carried unanimously.
TREASURER'S REPORT/JANUARY 1994 (05.V)
Informational report submitted by the Treasurer to the Council for the month of January 31,
1994, received and filed.
TREE CITY U.S.A./DESIGNATION (06.28)
Motion by Mr. Blanton, seconded by Mrs. Benjamin, that Council accept the report designating
the Town of Los Gatos "Tree City U.S.A." Carried unanimously.
TREE PRUNING/9325 PROJECT/$15,000 CONTINGENCY (07.35)
Motion by Mr. Blanton, seconded by Mrs. Benjamin, that Council approve contingency increase
for Project 9325-(Tree Pruning) by $15,000. Purchase Order #94171. Operating Fund - 6033-
61004. Carried unanimously.
MOBILE HOME RENTAL/TENANT-LANDLORD DISPUTES/ORDINANCE AMENDMENT (08.16)
Motion by Mr. Blanton, seconded by Mrs. Benjamin, that Council instruct the Town Clerk to
publish summary of Ordinance Amending Article 14.85 Regarding Mobile Home Rental and
Other Tenant/Landlord Disputes. Carried unanimously.
LOS GATOS DOWNTOWN ASSOCIATION BOARD OF DIRECTORS APPOINTED AS THE
DOWNTOWN ECONOMIC DEVELOPMENT ADVISORY COMMITTEE (09.20)
Motion by Mr. Blanton, seconded by Mrs. Benjamin, that Council ratify Los Gatos Downtown
Association Board of Directors as Downtown Economic Development Advisory Committee.
Carried unanimously.
VEHICLE REGISTRATION FEE REVENUES/AB 434/RESOLUTION 1994-44 (10.38)
SANTA CLARA COUNTY CONGESTION MANAGEMENT AGENCY AS PROGRAM MANAGER
Motion by Mr. Blanton, seconded by Mrs. Benjamin, that Council adopt Resolution 1994-44
entitled, RESOLUTION' OF THE TOWN OF LOS GATOS DESIGNATING THE SANTA
CLARA COUNTY CONGESTION MANAGEMENT AGENCY AS RECIPIENT OF THE
OVERALL PROGRAM MANAGER FOR AB 434 (SHER--1991) VEHICLE REGISTRATION
FEE REVENUES. Carried unanimously.
PLANNING COMMISSION/COMMENDATION/SUSAN GRIMES/RESOLUTION 1994-45 (11.20)
Motion by Mr. Blanton, seconded by Mrs. Benjamin, that Council adopt Resolution 1994-45
entitled, RESOLUTION OF THE TOWN OF LOS GATOS COMMENDING SUSAN GRIMES
FOR HER SERVICE AS A MEMBER OF THE PLANNING COMMISSION OF THE TOWN
OF LOS GATOS, Carried unanimously.
PLANNING COMMISSION/COMMENDAT'N/DIANE ROBERTS/RESOLUTION 1994-46 (12.20)
Motion by Mr. Blanton, seconded by Mrs. Benjamin, that Council adopt Resolution 1994-46
entitled, RESOLUTION OF THE TOWN OF LOS GATOS COMMENDING DIANE ROBERTS
FOR HER SERVICE AS A MEMBER OF THE PLANNING COMMISSION OF THE TOWN
OF LOS GATOS, Carried unanimously.
TC: D6: MM032194
2
ORDINANCE 1973
ORDINANCE OF THE TOWN OF LOS GATOS
AMENDING ARTICLE 14.85 REGARDING
MOBILEHOME RENTAL AND OTHER TENANT/LANDLORD DISPUTES
THE TOWN COUNCIL OF THE TOWN OF LOS GATOS DOES HEREBY
ORDAIN:
SECTION I
Section 14.85.020 of the Town Code is hereby amended to read as follows:
Section 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) 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.
(b) Arbitrator. An individual designated by the Town Manager or the Town
Manager's designee to conduct the hearing procedures of this article and to
determine the reasonableness of rent increases.
(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 or 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.
(e) CPI rent 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.
(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.
(g) 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.
(h) 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.
(i) 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.
(j) 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.
(k) Owner or Mobile home park owner. The owner, lessor, operator or manager
of a mobile home park in the Town.
(1) Owner's petition. A petition filed by an owner seeking a supplemental rent
increase.
(m) 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.
(n) 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.
(o) Space rent. The total consideration, including any bonus, fees, surcharges,
benefits or gratuity demanded or received in connection with the use or
occupancy of a mobile home space in 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.
2
•
(p) 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.
(q) 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.
(r) Tenant's petition. A petition filed by one or a group of affected tenants and
supported by at least 20 percent of affected tenants.
(s) Town's agent. The individual or agency designated by the Town council to
perform the services defined herein.
SECTION II
Section 14.85.050 of the Town Code is hereby amended to read as follows:
Section 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.
SECTION III
Subsections 14.85.055(b) and (c) of the Town Code are hereby amended to read as
follows:
Section 14.85.055. Duty of owner to provide copy of article and rental data.
(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. By February 1 of each year thereafter, the mobile home park owner will
document and file with the Town's agent the rent charged in December of the previous
year, for each space occupied by a tenant -owned 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.
SECTION IV
Section 14.85.105 of the Town Code is hereby amended to read as follows:
Section 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 notices shall be
given on the same day each calendar year although increases may take effect on different
dates. 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 existing leases and leases identified in Section 14.85.175 below.
(b) Any notice of space rent increase shall include notice of the tenant's right to
participate in the rent review process. The notice shall include the address and telephone
number of the Town's agent. This can be included conspicuously in the rent increase notice
or done separately at the same time and manner as the rent increase notice. The
recommended wording is:
"You have the right to use the Rental Dispute Hearing Process. For further
information, contact:
[Insert current name, address, and phone number of Town Rental Mediation
Program.]"
(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.
4
SECTION V
Section 14.85.125 of the Town Code is hereby amended to read as follows:
Section 14.85.125. Same --Submission of tenant's petition.
(a) Any tenant who wishes to limit any rent increase or to reduce any current
rents may file a tenant's petition with the Town's agent. Upon receipt, the Town's agent
shall send a ballot to each affected tenant to determine her/his support for the petition.
To be a valid petition, it must be supported by at least twenty (20) percent of the affected
tenants as determined by ballots received. The sole basis for such a petition shall be to
compensate for a reduction in service. 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.
(b) 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 twenty-eight (28) days of original petition submittal. Service of notice
upon the designated tenant representative will constitute adequate and sufficient notice to
the tenants who signed the petition. Failure to designate a tenant representative within
twenty-eight (28) days of original petition submittal will render the petition incomplete and
the petition will not be accepted for filing.
(c) 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 audit and analysis may
be required more frequently than every three (3) years. 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 shall be prepared and presented to the mobile 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.
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SECTION VI
Section 14.85.130 of the Town Code is hereby amended to read as follows:
Section 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. Appended to the
tenant's petition 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.
SECTION VII
Section 14.85.135 of the Town Code is hereby amended to read as follows:
Section 14.85.135. Same --Time for filing.
An owner's petition must be filed at least thirty (30) days before the first effective
date of the increase stated in the notice to tenant. A tenant's petition must be filed within
thirty (30) days after expiration of the reasonable time given to the mobile home park
owner to restore services.
SECTION VIII
Section 14.85.145 of the Town Code is hereby amended to read as follows:
Section 14.85.145. Hearing --Procedures.
(a) Parties. Parties to an owner's petition include the owner and all tenants affected
by the proposed rental increase. Parties to a tenant's petition include the owner and
affected tenants.
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(b) Time. Within sixty (60) days from the date a petition is received by the Town's
agent, an arbitrator shall conduct a hearing open to representatives of all parties.
(c) Notice. The Town's agent shall mail written notice to all parties at least twenty
(20) days before the hearing.
(d) Submittal of evidence. Materials to be considered at the hearing must be logged
with the Town's agent at least twelve (12) days in advance of the hearing who shall make
them available to all parties to the hearing at least seven (7) days in advance of the hearing.
(e) Extensions. Extensions of time for the hearing process may be mutually agreed
upon by both parties with the concurrence of the arbitrator.
SECTION IX
Section 14.85.160(b)(2) of the Town Code is hereby amended to read as follows:
Section 14.85.160. Same --Determination.
(h)
(2) If an audit and analysis prepared pursuant to the provisions of section
14.85.125 indicates that a park's NOI exceeds five (5) percent more
than a fair and reasonable return as defined by section 14.85.245, it
shall be considered prima facie evidence of a service reduction and the
burden of proof shall switch to the park owner to establish that a
service reduction has not occurred.
SECTION X
Section 14.85.165 of the Town Code is hereby amended to read as follows:
Section 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. The Town's agent shall cause copies of the
determination and the findings to be mailed by regular first class mail to all parties.
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SECTION XI
Section 14.85.170 of the Town Code is hereby amended to read as follows:
Section 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 which is the subject of a tenant's petition and later determined to
be unjustified because of a service reduction, shall, within ninety (90) days be either
returned to the tenants or credited to future rental charges at the option of the mobile
home park owner.
SECTION XII
Section 14.85.175 of the Town Code is hereby amended to read as follows:
Section 14.85.175. Determination; applicability.
The determination made under the provisions of this article shall be effective with
respect to all mobile home park spaces, unless the tenant of such space has a written lease
with the owner that meets the criteria of Civil Code Section 798.17 and that otherwise sets
forth the rights and obligations of the parties with respect to rent.
SECTION XIII
Section 14.85.180 of the Town Code is hereby amended to read as follows:
Section 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.
SECTION XIV
A new subsection 14.85.235(a)(5) is added to the Town Code to read as follows:
Section 14.85.235. Calculation of gross income.
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(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 non -sales transaction, then, for this
subparagraph, the transaction would be considered a sale and the sales
price would be set at the fair market value of the asset.
SECTION XV
Subsections 14.85.240(a)(4) and (a)(5)(e) of the Town Code are hereby amended to
read as follows:
Section 14.85.240. Calculation of operating expenses.
(a) * ** *
(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.
(5)
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.
SECTION XVI
Subsection 14.85.315(c) of the Town Code is hereby amended to read as follows:
Section 14.85.315. Determining value of unreasonable service reductions.
(c) The arbitrator shall apply the percentage reduction to the monthly rent,
divide by thirty (30), and multiply by the number of days commencing
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from the date service reduction began to the date of restoration of the
service to the Basic Service Level.
SECTION XVII
Section 14.85.405 of the Town Code is hereby amended to read as follows:
Section 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
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.
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SECTION XVIII
This ordinance was introduced at a regular meeting of the Town Council of the
Town of Los Gatos on March 7, 1994, 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 April 4, 1994. This ordinance takes effect thirty (30) days after it is adopted.
COUNCIL MEMBERS:
AYES: Joanne Benjamin, Steven Blanton, Linda Lubeck, Patrick O'Laughlin
Mayor Randy Attaway
NOES: None
ABSENT: None
ABSTAIN: None
SIGNED:
ATTEST:
/s/ Randy Attaway
MAYOR OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
/s/ Marian V. Cosgrove
CLERK OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
CSD08:A:\ORDS\CS030794.001
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April 4, 1994
Los Gatos, California
DEFERRED COMPENSATION PLAN/GREAT WESTERN BANK/RESOLUTION 1994-53 (14.12)
Motion by Mrs. Benjamin, seconded by Mr. Blanton, that Council adopt Resolution 1994-53
entitled, RESOLUTION OF THE TOWN OF LOS GATOS AUTHORIZING THE TOWN
MANAGER TO SIGN A CONTRACT WITH GREAT WESTERN FOR ADMINISTRATION
OF TOWN DEFERRED COMPENSATION PLAN. Carried unanimously.
PREFERENTIAL PARKING DISTRICT/BACHMAN AVE/RESOLUTION 1994-54 (15.42)
Motion by Mrs. Benjamin, seconded by Mr. Blanton, that Council adopt Resolution 1994-54
entitled, RESOLUTION OF THE TOWN OF LOS GATOS AMENDING RESOLUTION 1992-
128 REMOVING 211 AND 221 BACHMAN AVENUE FROM THE PREFERENTIAL PARKING
DISTRICT. Carried unanimously.
MOBILEHOME RENTAL/TENANT-LANDLORD DISPUTES/ORDINANCE 1973 (17.16)
Motion by Mrs. Benjamin, seconded by Mr. Blanton, that Council adopt Ordinance 1973 entitled,
ORDINANCE OF THE TOWN OF LOS GATOS AMENDING ARTICLE 14.85 REGARDING
MOBILEHOME RENTAL AND OTHER TENANT/LANDLORD DISPUTES, which was
introduced at the Town Council meeting of March 7, 1994. Carried unanimously.
VERBAL COMMUNICATIONS:
Jo Bartlett, 166 Oak Hill Way, spoke regarding the fire hazard in the hills and the need for
more water pressure in the fire hydrants. Town Manager , Dave Knapp, responded that staff
would check on the issues raised and report to Council at the next meeting.
Mimi Whitney, 15075 Garden Hill Drive, spoke regarding a traffic sign in disrepair identifying
a cul-de-sac that does not have the access that speeding cars are looking for. She requested a
more visible sign located soon enough to warn drivers of the dead end.
HEARINGS
TRAFFIC MITIGATION FEES/REVISED PLAN/HEARING/RESOLUTION 1994-55 (18.46)
Mayor Attaway stated that this was the time and place duly noted for public hearing to consider
adopting a resolution revising town -wide traffic impact mitigation fees.
There was no one from the audience to speak on this issue.
Motion by Mrs. Benjamin, seconded by Mr. O'Laughlin, that Council close this public hearing.
Carried unanimously.
Motion by Mrs. Lubeck, seconded by Mr. O'Laughlin, that Council adopt Resolution 1994-55
entitled, RESOLUTION OF THE TOWN OF LOS GATOS AMENDING TRAFFIC IMPACT
MITIGATION FEES AND RESCINDING RESOLUTIONS 1990-144 AND 1993-134, with the
following additions: 1) exempt new secondary units of 600 sq. ft or less; 2) walk in impulse shops
such as yogurt shops, juice bars, donut shops etc.. will be considered to be specialty retail for
purposes of the traffic mitigation fee. Carried unanimously.
TC: D6: MM040494
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