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Ord 1822 - Supplementing Chapter 22 Providing for Pass-Through of Penalties for Excess Water Usage During DroughtORDINANCE 1822 URGENCY ORDINANCE OF THE TOWN OF LOS GATOS SUPPLEMENTING CHAPTER 24 OF THE TOWN CODE, PROVIDING FOR PASS - THROUGH OF PENALTIES FOR EXCESS WATER USAGE DURING THE CONDITION OF DROUGHT THE TOWN COUNCIL OF THE TOWN OF LOS GATOS DOES HEREBY ORDAIN: SECTION I The Council finds and determines that since the drought condition was declared for Santa Clara County, water companies servicing multi - family rental units in Los Gatos have imposed penalties for water usage in excess of the water allocation. The Rent Ordinance covering multi- family rental units does not provide for immediate pass - through of these water penalties to tenants. To alert the tenants of multi - family dwelling units of the drought and allow for fair and reasonable allocation of penalties, the following measures are necessary for the immediate preservation of the public peace and are hereby placed in effect. SECTION II This ordinance supplements Chapter 24 of the Town Code and the resolution promulgated thereby. 1. General Provisions a. The landlord of a rental unit covered by the Ordinance may pass through to the tenant of such rental unit the excess water usage penalties imposed by the water company supplying water to such rental unit. b. For the purpose of these Regulations, "excess water usage penalties" means the penalties imposed by the water company for the use of water in excess of the water allocation established by the water company for the multi - family residence in which the rental unit is located. CSD08 A, \ords \passthru.wat C. No pass- through of excess water usage penalties shall be made by any landlord except in accordance with this ordinance. 2. Calculation of Pass - through a. The landlord may pass through no more than one -half of the penalty imposed by the water company. b. The amount of the penalty that may be passed through to the tenant or tenants of a single rental unit shall be determined by dividing one -half of the penalty imposed by the water company by the number of rental units in the building or complex covered by the water bill issued by the water company. C. If a rental unit was vacant during the period covered by the water bill, the landlord shall pay the portion of the excess water usage penalty that would otherwise be passed through to the tenant of that rental unit. d. If a rental unit was vacant during a portion of the period covered by the water bill, the landlord shall pay the portion of the excess water usage penalty attributable to the period the rental unit was vacant. That portion shall be determined by dividing the number of days the rental unit was vacant by the number of days in the period covered by the water bill. e. For the purpose of this Section of this ordinance, a rental unit is 'vacant" when no tenant has the right to physically occupy the rental unit pursuant to a lease, rental agreement or other arrangement with the landlord. The rental unit is not deemed vacant merely because the tenant has not yet exercised the right of occupancy, because the tenant is absent from the premises, or because the tenant has sublet the rental unit. CSD08:A: \ords \passthru.wat 2 3. Notification and Payment a. Any landlord who desires to pass through an excess water usage penalty shall notify the tenant of the amount due from the tenant by mailing notice of the pass- through to the tenant. The pass- through notice shall be mailed within thirty (30) days of the date the landlord pays the penalty to the water company and shall include: (1) A copy of the water bill containing the penalty. (2) A statement that the penalty has been paid by the landlord. (3) Notice of the tenant's right to file a request for review by the Town's Rent Mediation Program designee on the following grounds: (a) The tenant disputes the legitimacy of the water bill or disputes whether the landlord has paid the penalty. (b) The tenant claims the rental unit was vacant during the time, or a portion of the time, covered by the water bill. (c) The tenant claims there are mathematical or clerical errors in the calculation of the tenant's share of the penalty. (d) The tenant claims the pass- through payment schedule has been incorrectly applied. (4) The time by which the tenant's request for review must be filed. (5) The address and telephone number of the Town's Rent Mediation Program designee. CSD08 * \ords \passthru.wat 3 b. If the pass- through notice is made in connection with a bill for rent, the pass - through shall be itemized as a separate line item on the rent bill. C. The tenant shall pay the pass- through amount to the landlord within thirty (30) days of the postmark date on the notice of the pass- through or, if the pass- through is made in connection with a bill for rent, at the time the rent payment is made provided that the tenant's payment shall not be due less than thirty (30) days from the date of the pass- through notice. d. If the water bill covers more than a one -month period, the landlord may divide the pass- through amount payable by the tenant into a number of payments equal to the number of months covered by the water bill. The pass- through notice shall specify the dates such multiple payments are due to the landlord. e. The landlord and the tenant may mutually agree in writing to a payment schedule for the pass - through that differs from the schedule set forth in c. and d. above. f. If a tenant vacates the rental unit prior to the payment of the pass- through, the entire unpaid balance of the pass- through shall be due and payable at the time the tenant vacates the rental unit. The unpaid balance of the pass- through may be treated by the landlord in the same manner as any other balance due from the tenant. 4. Appeal. a. If a tenant disputes the pass- through of the excess water usage penalty, the tenant may file a written request for review with the Town's Rent Mediation Program designee. Such request for review must be filed within thirty (30) days of the postmark date on the notification of the pass- through (3.a. above) and shall state the grounds upon which the request is made. If the tenant cannot demonstrate the postmark date on the notification of the CSD08:A: \ords \passthru.wat 4 pass- through the postmark date shall be presumed to be the date stated in the notification. b. If a tenant files a request for review, the payment of the pass - through shall be suspended pending the decision of the Town's Rent Mediation Program designee and, if that decision is appealed, the decision of the arbitrator. If the decision of the Rent Mediation Program Staff or the arbitrator on appeal, is that the tenant is to pay all or a portion of the pass- through, the payment shall be due to the landlord immediately upon the issuance of the decision. C. Review by the Town's Rent Mediation Program designee shall be on the following grounds only: (1) The tenant disputes the legitimacy of the water bill paid by the landlord or disputes whether the landlord has actually paid the penalty. (2) The tenant claims the rental unit was vacant during the time, or a portion of the time, covered by the water bill. (3) The tenant claims there are mathematical or clerical errors in the calculation of the tenant's share of the penalty. (4) The tenant claims the pass- through payment schedule set forth in 3.c. and 3.d. has been incorrectly applied. d. Within ten (10) working days of receipt of the tenant's request for review, or such other time as reasonably necessary, the Town's Rent Mediation Program designee shall notify the landlord in writing of the tenant's request for review. A copy of the notice to the landlord shall be mailed to the tenant at the same time the notice is mailed to the landlord. e. The landlord and the tenant shall submit any written documen- tation, including evidence and argument, to the Town's Rent Mediation Program designee within ten (10) working days of the CSD08:A: \ords \passthru,wat 5 postmark date of the notice specified in d. above. The landlord must submit at least a copy of the water bill containing the penalty that was passed through, proof that the penalty has been paid by the landlord, a statement of the number of rental units covered by the bill, and documentation showing the tenant's right to occupy the rental unit during the period covered by the water bill. E The landlord and the tenant may review the documentation submitted by the other at the Town's Rent Mediation Program designee office during the normal business hours of the Program. Any rebuttal documentation shall be submitted within fifteen (15) working days of the postmark date of the notice specified in d. above. g. The Town's Rent Mediation Program designee shall review the documentation submitted by the landlord and the tenant and, within twenty -five (25) days of the postmark date of the notice specified in d. above, shall mail a written decision to the landlord and to the tenant. h. The landlord or the tenant may appeal the decision of the Town's Rent Mediation Program Administrator by filing a written notice of appeal to the Town's Rent Mediation Program designee within seven (7) days of the postmark date of the decision of the Administrator. Grounds for appeal shall be only: (1) There is a dispute regarding the legitimacy of the water bill paid by the landlord or a dispute as to whether the landlord paid the penalty. (2) There is a dispute regarding whether the rental unit was vacant during any time covered by the water bill. (3) There is a claim of mathematical or clerical error in the calculation of the tenant's share of the penalty. CSD08 * \ords \passthru.wat 6 L The appeal shall be heard by an arbitrator using the arbitration procedure used in cases involving breach of a Voluntary Agreement. 5. Refund a. If the landlord receives a refund of the excess water usage penalty paid to the water company, or a refund of a portion thereof, the landlord shall refund the pass - through to the tenants. The amount of the refund to the tenants shall be a pro - rata amount based on the portion of the excess water usage penalty paid by the tenants. b. The landlord may refund the amount of the refund to the tenant directly or may offset the rent payable by the tenant. In the case of a rent offset, the landlord shall list the refund as a separate line item on the rent bill, if applicable. 6. Termination of Pass - through a. Pass- through of excess water usage penalties shall be permitted under the Ordinance and these Regulations only for penalties paid by the landlord on or before thirty days of the recision of this Ordinance. SECTION III This ordinance takes effect immediately and shall be published once in a newspaper of general circulation, published and circulated in the Town within fifteen (15) days of adoption. This ordinance will be repealed the same date that the Town's Urgency Ordinance 1819, (Declaring The Existence of a Condition of Drought and Providing For Mandatory Reductions In and Specified Prohibitions of Water Use) or any subsequent ordinance is repealed. CSD08:A: \ords \passthru.wat 7 This ordinance was passed and adopted at a regular meeting of the Los Gatos Town Council of the Town of Los Gatos on the 21st of May, 1990, and adopted by the following vote as an urgency ordinance of the Town of Los Gatos. COUNCIL MEMBERS: AYES: Joanne Benjamin, Eric D. Carlson, Robert L. Hamilton Mayor Thomas J. Ferrito NOES: NONE ABSENT: Brent N. Ventura ABSTAIN: NONE SIGNED: YOR OF 7THE N OF LOS GATOS LOS GATOS, L 4ORN1A ATTEST: CLERK OF THE TOWN OF LOS GATOS LOS GATOS, CALIFORNIA CSD08 * \ords \passthru.wat 8