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HomeMy WebLinkAbout1981-02-17; City Council; 6410-3; Mobile Home Park RentsA.- CITY OF CARLSBAD AGENDA BILL NO. 6410-Supplement 3 DATE: February 17, 1981 I DEPARTMENT City Manager Subject: MOBILEHOME PARK RENTS Statement of the Matter Initial: Dept.Hd. C. Atty.�iw C. Mgr. At your February 10, 1981 meeting, the City Council indicated,an intention to discuss this subject further prior to the expiration of the moratorium on February 28, 1981. Attached is a draft of a proposed mobilehome park rent ordinance. The Council may wish to invite input from all concerned parties. It is contemplated that the Council will not deal with the ordinance at your February 17, 1981 meeting but will adjourn that meeting and "continue the item until 9 o'clock on Saturday, rebruary 28, 1981. If the problem has not been solved by mutual agreement between the park owners and the coach owners prior to that time, it is recommended that the Council make a decision as to how to proceed at the February 28th meeting. If an ordinance is adopted by the necessary 4/5ths vote,, it will become effective immediately and will supersede the moratorium ordinance. Rents will then proceed to be adjusted in accordance with the permanent ordinance. However, it is possible that the Council would not be able to finally proceed at that time, which means that there could be a gap between the expiration of the moratorium and the effective date of a permanent ordinance. This gap could create significant hardships and difficulties. It is recommended that it be avoided if possible. Therefore, also attached is an ordinance which would extend the moratorium until the permanent ordinance could become effective. Exhibits Ordinance No. 9576. Ordinance No. 3124 - Recommendation That the City Council continue the matter to an adjourned meeting to be held at 9 A.M. on February 28, 198.1. Additional staff reports will be made available to the Council prior to that meeting. Council Action: 2-17-81 Council continued the matter to an adjourned meeting to be held at 9:00 A.M. on February 28, 1981. K 1 I ■! L ORDINANCE NO. 1 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF 2 CARLSBAD, CALIFORNIA, AMENDING TITLE 5 OF THE CARLSBAD MUNICIPAL CODE BY THE ADDITION OF CHAPTER 5.32 TO FACILITATE RESOLUTION OF 4, DISPUTES OVER MOBILEHOME PAP.K RENTS. The City Council of the City of Carlsbad, California, does 5 6 ordain as follows: 7 SECTION 1: That Title 5 of the Carlsbad Municipal Code is 8 amended by the addition of Chapter 5.32 to read as follows: 9 "Chapter 5.32 PROCEDURE FOR RESOLUTION OF 10 DISPUTES OVER MOBILEHOME PARK RENTS 11 Sections: a 12 5.32.010 Purpose and intent. 13 5.32.020 Definitions. S 5.32.030 Applicability. a a 141� 5:32.040 Rental information. Formation of park negotiating committee. i ?U2 0 15 5.32.050 5:32.060 Advance notice of rent increases. LL Z3,-' 5.3".070 Mobilehome owners response to ballot. z � c+ 3.6 5.32.080 Acceptance of increase. 532.090 Rejection of increase. 0 a_a, 5 17 5:32.100 Meeting of park negotiating committee. a 5.32.110 Tentative agreement ballot. 18 5.32.120 Acceptance of agreement. 5.32.130 Rejection of agreement. '19 5.32.140 Final offer. 532.150 Acceptance of final offer. 20 5:32.160 Rejection of final offer. 5.32.170 Initiation of arbitration. 21 5.32.181 Arbitration. 22 5.32.190 Venue. 5.32.200 Standards'for arbitration. 5.32.210 Arbitrator's decision. 23 5.32.220 Costs. 5.32.230 Retroactivity. - 24I 5 32 240 Enforcement. 5:32:250 Limitation on fees and assessments. N5 5.32.260 Retaliatory eviction. 5.32'.270 Exception -private agreement. 26 5.32.280 Severability. 27 5.32.010 Purpose and intent. There. is presently within the surrounding areas, a severe shortage . 28 the City of Carls a and of spaces for the location of mobilehomes. Because of the x shortage there is a low vacancy rate, and rents have been for several years and are presently in some parks rising rapidly 2 and causing great concern among a substantial number of Carlsbad residents. These concerns have resulted in strife which 3 jeopardizes the public health, safety and welfare of both the mobilehome owners and mobilehome park owners. The problems 4 caused by this strife can be avoided if both parties will under- stand their respective rights as property owners and their. 5 relation to one another. Because their rights are interrelated, both parties must refrain from certain unilateral acts or practices. 6 This chapter is intended to promote an understanding of these matters and to provide a procedure to resolve disputes. Due to 7 the high cost of moving mobilehomes, the potential for damage ,resulting therefrom, the requirements relating to the installation 8 of mobilehomes, including permits, landscaping and site prepara- tion, the lack of alternative homesites for mobilehome residents 9 and the substantial investments of mobilehome owners in such homes, the mobilehome owner is often in an unequal bargaining 3.0 position with the park owner. This chapter is to protect the right of mobilehome owners to organize and bargain -collectively by 11 encouraging practices fundamental to the friendly adjustment of disputes arising out of differences as to rent increases in 0 12 mobilehome parks by restoring equality of bargaining power between ners. Because of the high cost of park owners and mobilehome ow 13 moving mobilehomes, the potential for damage resulting therefrom, a 2 the requirements relating to the installation of mobilehomes, a 14 including permits, landscaping and site preparation, the lack of o QIOL o alternative homesites for mobilehome residents and tfig.. pubs tanti al 15investment of mobilehome owners in such homes, the City Council LL-36 also finds and declares it necessary to establish a means which, Who 16 if followed, can provide protection to the owners and occupiers z o�m of mobilehomes from unreasonable rent increases while at the same -> < 3.7 time recognizing the need of mobilehome park owners to receive a reasonable return on their property and rent increases 18 sufficient to cover the increased cost of repairs, maintenance, insurancry, upkeep .and additional amenities. ' 19 It is hereby declared to be the policy of the City of 20 Carlsbad to encourage the practice and procedure of collective bargaining and protecting mobilehome owners of full freedom of 21 association, self organization and designating representatives of their own choosing for the purpose of negotiating the terms 22 and conditions of rent, rent spaces, and rent increases of mobilehome parks, based on present services in effect, present 23' amenities in effect and for additional amenities. 24 The procedures contained herein are intended to enhance resolution of unreasonable increases in rents by making it 25 advantageous for mobilehome owners and mobilehome park owners to establish a better understanding for each others positions 26 through communication; hopefully resulting in an agreement on the amount of rent to be charged. However, if an agreement cannot 27 be reached, the City Council has determined it necessary and in the public interest to have the disagreement resolved by 28 binding arbitration. -2- U 1. 5:32.020 Definitions. Words used in this chapter shall have the meaning ascribed to them in this section: 2 (1) ."Arbitration" means a process condurted in accordance with the California Arbitration provisions 3 contained in Section 1280, et seq. of the California Code of Civil Procedures. 4 (2) "Arbitrator" means an impartial arbitrator selected pursuant to this chapter on a case by case basis. 5 (3) "Association" means the mobilehome owners organization representing the miobilehome owners of at least 6 60% of the occupied spaces within the park. (4) • "Majority" means a simple majority of the 7 mobilehome owners in a park eligible to vote and voting. (5) "Mobilehome owner" means any person or persons 8 entitled to occupy a mobilehome dwelling unit pursuant to ownership thereof. ; 9 (6) "Owner" means the owner, lessor, operator, manager or designated agent of a park. 10 (7) "Park" means a mobilehome park which rents spaces for mobilehome dwelling units. 11 (8) "Park Corimittee" means the mobilehome park committee to be established in each mobilehome park in accordance c 12, with this chapter. m' (9) "Rent" means the consideration, including any 2 13 benefits or fees, in connection with the use and occupancy of cc< to 14 a mobilehome space in a park. S °WRr 0 5.32.030 Applicability. The provisions of this chapter m<� 15 shall only apply to a park which: LL•W (1) Contains more than twenty-five spaces; and z W 8 0 16 (2) Where an association of mobilehome owners has i Z been"formed and a written notice has been filed by the association 17 with the owner containing: (1) the name and mailing address of 18 19 20 21 22 23 24 25 26 27 28 -3- f •� I 21 J11— 3 4 5 6 7 8 the association; (2) the names and addresses of the association's officers; (3) the names and addresses of the persons authorized to represent the association in dealings with the owner; and (4) certification that the membership of the association includes all the mobilehome owners of more than 60% of the occupied spaces within the park. 5.32.040 Rental information. Within thirty days after notice to an owner by an association of their existence, if requested the owner must provide the association with current monthly rental rates and fees schedule showing the rent for each space within the park, the schedule which was in effect one year preceding the date lof activation of the association and the date and amount of any increases in rent during the interim. 10 11 12 °a g 13 VOr va �Oz¢ 14 2 15 Q LL 4 W Ci # WZ$p 16 CO -> 17 a 18 19 20 21 22 23 24 25 26 27 28 5 32 050 Formation of park negotiating committee. The owner and association of a park shall establish a park negotiating com- mittee consisting of an even number of members --one-half of such members representatives of the owner, and one-half of such members representatives of the mobilehome owners. The exact number of members and alternates if any shall be determined by mutual agree- ment between the owner and the association. 5.32.060 Advance notice of rent increases. (a). Not later than sixty calendar days before an increase in rent is to become applicable, an owner shall provide written notice thereof to the association and to all mobilehome owners in the park. (b) Upon receipt by the association of such notice the association shall promptly send out a secret ballot to all the mobilehome owners in the park asking for a vote on whether to ac or reject the rent increase. 5 32.070 Mobilehome owners response -to ballot. Within te.., days of receipt of a ballot pursurant to section 5.32.060, the mobilehome owners (1 vote for each space) shall reply to the association indicating their vote to accept or reject the proposed Trent increase. The replies shall be tabulated by the association. The owner shall be afforded the right to be present at such tabu- lation. The association shall notify the owner of the results. 5.32.080 Acceptance of increase. If a simple majority of the mobilehome owners voting accept the, proposed increase in rent, it will become effective on the effective date designated by the owner on the advance notice of rent increase. 5.32.090 Rejection of -increase. If a simple majority of the mobilehome owners voting reject the proposed increase in rent, the matter shall be referred to the park negotiating committee and the increase shall not be effective. 5.32.100 Meeting of park negotiating_ committee. The park negotiatiiT ig committee shall meet promptly to consider any proposed increase which is referred to them and shall investigate, hold hearings and take any other reasonable steps necessary to resolve the matter by arriving at a mutually agreeable rent increase. The -4- 41 .< 1 ° a m � J pQp �= N U S O O Z Z z cc O � Q 0 LL ma�J y W V Lu W Z 8 ° zoom �a a � o 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 committee shall establish their own rules and procedures. The committee shall be guided in their deliberations by the purposes and intent of this chapter. Upon request the owner shall make available to the committee such information and records concerning the operation of the park as are reasonably necessary to a deter- mination of costs of operation and a reasonable return on the property. The owner shall also furnish the committee with facts and,figures he relies on to show that the proposed rent increase is fair and equitable. The committee shall meet for a reasonably period of time in a good faith effort to reach agreement. 5.32.110 Tentative agreement --ballot. If the park negotiating committee reaches a tentative agreement on a rent increase, the association shall promptly by secret ballot poll the mobilehome owners in the park for acceptance or rejection. The secret ballot shall include the recommendation of the committee. The time limits and procedures of section 5.32.070 shall apply to the ballot. 5.32.120 Acceptance of agreement. If a simple majority of the mobilehome owners voting accept the tentative agreement the rent increase and any other provisions will become effective as provided therein. 5.32A30 Rejection of agreement. If the tentative agreement is rejected the matter shall be referred to arbitration in accor- dance with the provisions of thin chapter. 5.32.140 Final offer. If after a reasonable period of time in good faith negotiations an agreement acceptable to the park negotiating committee has not been reached the owner shall make a final offer. 'The association shall promptly report this offer together with their recommendation to the mobilehome owners in the park and poll them as either,accep+-ance of the final offer or a rejection and referral of the matter to arbitration. The time limits and procedures of section 5.32.070 shall apply to the ballot. 5.32.150 Acceptance of final offer. If a simple majority of the mobilehome owners voting accept the final offer it shall become effective as provided therein. 5.32.160 Rejection of final offer. If the final offer is rejected the matter shall be referred to arbitration in accordance with the provisions of this chapter. 5.32.170 Initiation of arbitration. Upon referral to arbi- tration the committee shall immediately meet and take steps to select an arbitrator, and do anything else required to secure a speedy resolution of the arbitration. If the committee fails to agree on the selection of an impartial arbitrator within fourteen days from the referral either the owner or the association shall, have the right to submit the dispute to the American Arbitration Association for the selection of an arbitrator pursuant to their rules. 5.32.180 Arbitration. The arbitrator shall determine the -5- 1 2 4' 5 6 7 8 9 • 10 11 13 14! 15 16 17 18 19 20 21 22 23 24 25 26 27 28 rights of the parties in accordance with the law, including this chapter. The award shall be subject to review as to the arbitrator's application of the law by any court having jurisdiction of the matter, whether or not any mistake of the law shall appear upon the face of the award. As to all questions of fact, however, the determination of the arbitrator or arbitrators shall be binding upon all parties and shall be deemed final and conclusive. Each party shall be entitled to written findings of fact and conclusions of law as to all issues determined by the award. Subject to the above limitations the award granted by the arbitrator shall be binding upon all parties to the arbitration. 5.32.190 Venue. For the purpose of litigation or arbitration, venue shall lie in the North County Judicial District, County of San Diego, State of California, or, if such venue cannot be exercised, in the Federal or State Court nearest to the North County Judicial District, County of San Diego. 5.32.200 Standards for arbitration. The arbitrator shall give due consideration to the purposes and intent of this chapter in reaching a decision. In evaluating the rent increase proposed by the owner, the arbitrator shall also consider.increased costs to the owner attributable to increases in utility rates and property'taxes, insurance, advertising, governmental assessments, cost -of -living increases attributable to incidental services, normal repair and maintenance, capital improvements, upgrading and addition of amenities or services as well as a fair rate of return orr the property. 5.32.210 Arbitrator's decision. The arbitrator shall make a final decision within ten days after the conclusion of the hearing and notify the owner and the association. The association shall promptly notify the mobilehome owners of the arbitrator's decision. 5.32.220 Costs. The costs of arbitration shall be paid one-half by the owner and one-half by the association. 5.32.230 Retroactivity. (a) The procedures of this chapter are intended to result in a final resolution of a dispute prior to the effective date of a rent increase. If negotiations or arbitration do not result in a final decision by the effective date, the noticed rent shall be paid provided the amount of the increase shall be placed in an interest bearing trust account. 'Any negotiated agreement or arbitrator's decision shall.be retroactive to the noticed effective date and shall provide for the disbursement of any trust account as a part of any such agreement or decision. (b) This chapter shall apply to rents as they existed on December 31, 1980. Any rent increase to be effective or effective after that date is subject to this chapter. Upon the effective date of this chapter, any rent increases suspended by the City's moratorium ordinances shall become effective. The increase shall be placed in an interest bearing trust account. -6- L f 1 The tenants shall have 30 days to comply with Section 5.32.030. If they do not, the increases shall be fully effective and 2 the trust account paid to the park owner. If they do comply, Section 5.32..060(a) shall not apply. The association shall 3 promptly send the notice required by Section 5.32.060 and the parties shall proceed to resolve the matter in accordance 4 with this chapter. A decision on any such increase shall be folly retroactive to the originally noticed effective date. 5 5.32.240 Enforcement. (a) Violation of the provisions 6 of this chapter shall not constitute a crime. 1 (b) A'mobilehome owners' association may at any time bring ; q an action in the courts of this state alleging a violation by an owner of any of the terms of this chapter, including 9 3.6 12 a f• 13 " a 14 go$� 0 a uo 15 It- SW5�� 16 W 2 K d i i Z O > K 17 v 18 19 20 21 22 23 24 25 26 27 • 28 "7_ i 1 c a 00 00Zz o�>o CO �ZsQ U CC cc �E cc Vr -,. 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24i 25 26 27 28 but not limited to, the existence of a level of rents in excess of that allowed and may seek a court order requiring compliance with the provisions of this chapter. (c) An owner may at any time file an action in the courts of this state alleging a violation by an association of the provisions of this chapter, and may seek a court order directing compliance with the provisions hereof. (d) The owner may not enforce a rent increase in excess of that allowed by this chapter. In the event an owner increases rents without complying with the provisions of this chapter, such an increase.shall be deemed null and void, residents shall not be required to pay such increase except to the -extent it is specif- ically established by an individually written contract between the resident and landlord, and any resident who is sought to be excluded from the park through an unlawful detainer action brought by the owner to enforce eviction, shall have a right to assert the invalidity of such increase as a defense to the unlawful detainer proceedings is failure of the resident to pay such increase. 5.32:250 Limitation on fees and assessments. A mobilehome owner shall not be charged any fee for other than rent and reason- able charges for services actually rendered. A mobilehome owner shall not be charged a security deposit nor a fee for entry, installation hookup, or landscaping, except as specifically permitted under Section 798.37 of ;.he Civil Code, as a condition of any tenancy. There shall be no imposition by the owner of any fees or assessments until such assessments or fees have been approved in writing by mobilehome owners representing more than fifty percent of the spaces within the park. 5.32.260 Retaliatory eviction. Notwithstanding Section 5.32.230 above, in any action brought to recover possession of a rental unit the court may consider as grounds for denial any violation of agiy provision of this chapter. further, the determination that the action was brought in retaliation for the exercise of any rights conferred by this chapter shall be grounds for denial. Any action brought within three months of the determination of a petition filed with the park negotiating committee shall be presumed to be retaliatory: this presumption affects the burden of proof, and is rebuttable by the owner. 5.32.070 Exception -private agreement. The City Council may except a mobilehome park from this chapter provided that a contract between the park owner and the owners of at least 50% of the mobilehomes in that park is submitted to the Council and the Council finds that the contract provides an effective alternative procedure for resolution of disputes over mobilehome rents. The exception shall remain in of ect for the term of the contract. Upon termination of the contract, the park shall again be subject to the terms of this chapter. 5:32.280 Severability. if any provision or clause of this chapter or the application thereof to any person or circumstance is held to be unconstitutional or to be otherwise invalid by any court of competent jurisdiction, such invalidity shall not affect -8- 1 2 4 5 6 7 8 0 10 11 12 0 a m 3 co 13 a 14 E gOWcc 20 0 15 Za 16 Zo"m -> 17 18 19 20 21 22 23 24 25 26 27 28 other chapter provisions or clauses or applications thereof which can be implemented without the invalid provision or clause or application, and to this end the provisions and clauses of this chapter are declared to be severable." EFFECTIVE DATE: This ordinance shall be effective thirty days after its adoption, and the City Clerk shall certify to the adoption of this ordinance and cause it to be published at least once in the Carlsbad Journal within fifteen days after its adoption. INTRODUCED AND FIRST READ at a regular meeting of the Carlsbad City Council held on the day of , 1981 and thereafter PASSED AND ADOPTED at a regular meeting of the said Council held on the _ day of , 1981 by the following vote, to wit: AYES: NOES: ABSENT: RONALD C. PACKARD,'Mayor I ATTEST: ALETHA L. RAUTENKRANZ, City Clerk (SEAL) -9- 6 w 1 2 3 4 5 6 7 8 9 10 11 3 22'. 5 A 13 gozzz 14 I_ mG!- 15 wZo 16 U Q m >0 � 17 18 19 20 21 22 23 24 25 26 27 28 ORDINANCE NO. AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, EXTENDING THE MORATORIUM ON RENTAL INCREASES ON MOBILEHOME SPACESWITHIN THE CITY OF CARLSBAD. The City Council of the City of Carlsbad, California hereby finds and determines as follows: 1. The findings and determinations of Ordinances No. 9565 and No. 9572 continue to be true and are incorporated into this lordinance. 2. The City Council adopted said ordinances to preserve the status"quo pending study of the problems resulting from disputes over mobilehome park rents. That study has resulted -in a draft ordinance adopting a procedure for resolving disputes over mobilehome park rents. That ordinance is now before the City Council. 3. The Council has been made aware of efforts by mobilehome park owners and owners of mobilehomes to reach private agreements between themselves to provide a voluntary disn,Ate resolution procedure. Such procedure would obviate the need for the City Council to impose a solution. In order to allow these efforts to be consummated in legally binding agreements, the City Council has determined to defer consideration of the procedural ordinance and has determined that it is necessary to extend the moratorium. NOW, THEREFORE, BE IT ORDAINED by the City Council of the City of Carlsbad, California, as follows: SECTION 1: Ordinances No. 9565 and No. 9572 are extended to This extension is subject to the terms and conditions of said ordinances which are incorporated r ,+,.... , 1 2 4 5 6 7 8 9 10 11 12 13 -, g, < 14 OzZ 15 W 16 17 18 19 1 20 21 22 23 24 25 26 27 28 herein„ by reference, specifically including the provision that the resolution of the rent increases noticed to go into effect on January 1, 1981 shall be retroactive to that date. SECTION 2: This ordinance is hereby declared to be an emergency ordinance adopted as an urgency measure to protect the public health, safety and welfare and shall be effective immediately upon its adoption. The facts constituting the ,emergency are set forth in Ordinances No. 9565, No. 9572 and above in this ordinance. SECTION 3: The City Clerk shall certify to the adoption of this ordinance and shall cause a copy hereof to be published as required by law. INTRODUCED, PASSED AND ADOPTED -at a regular meeting of the City Council of the City of Carlsbad, California held am the day of , 1981 by the following vote, to wit: AYES: NOES: ABSENT: RONALD C. PACKARD, Mayor �) ATTEST: ALETHA L. RAUTENKRANZ, City Clerk (SEAL) -2- M r