City of Pleasanton, CA MOBILEHOME SPACE RENTS

Note: Prior ordinance history: Ords. 1588, 1608, 1701.

There are four mobilehome parks within the city. There are a limited number of vacant spaces in these parks and there are few additional mobilehome park spaces available in the county and adjoining communities.

On January 19, 1988, the mobilehome park owners and the city entered into an agreement providing for the stabilization of mobilehome rents (hereafter the January 19, 1988, agreement). Prior to the January 19, 1988, agreement, some mobilehome space rents had increased at a faster rate than the increase in the rate of inflation.

Prior to the January 19, 1988, agreement, the city council had been petitioned by the mobilehome residents to establish a rent stabilization ordinance. When the city council considered the ordinance, representatives of the park owners suggested that alternatives to the establishment of a rent stabilization ordinance be considered. As a result of that suggestion, the parties negotiated the January 19, 1988, agreement, which stabilized rents in the mobilehome parks within Pleasanton.

During 1991, the park owners and mobilehome residents expressed to the city that they were interested in negotiating a new agreement. The city sponsored and facilitated extensive negotiations to eliminate the need for the ordinance first adopted in 1992. It was assisted by the Pleasanton mobilehome committee consisting of park owner representatives and mobilehome resident representatives. After several months of negotiations, a new rent stabilization agreement ("the March 17, 1992 agreement") was developed and approved by the park owners and the city. However, one of the park owners would not sign the new agreement. Without benefit of an agreement to stabilize mobilehome rents, a park owner could impose whatever rent he or she chose, to the detriment of the mobilehome residents. In fact, the one park owner who would not sign the March 17, 1992, agreement has raised the rents on mobilehome spaces within his or her park during 1992 at a rate higher than what is permissible under either the January 19, 1988, agreement or the March 17, 1992, agreement.

Despite the efforts of the city and the Pleasanton mobilehome committee, the one park owner refused to enter into the March 17, 1992, agreement and accordingly, the city adopted an ordinance, later modified, to stabilize mobilehome rents in parks owned by owners who chose not to enter into the March 17, 1992, agreement.

As to the mobilehome park at 4202 Stanley Boulevard, this chapter establishes 1992 as the base year for purposes of determining fair return adjustments (Section 6.60.060 of this chapter) and as part of that process, looks to the base year gross income; base year gross income is predicated on the base year rents.

Under the then existing ordinance, the park owner of the property at 4202 Stanley Boulevard (the Pleasanton mobilehome park) believed that the base year (i.e., 1992) rents were not reasonable or did not reflect general market conditions and petitioned for an adjustment to the base year rents. In 1995, a hearing officer determined that effective February 1, 1993, the monthly rent for the spaces in that park was $335.00. The hearing officer did not determine the monthly rents for 1992, but because those rents were between $222.31 and $302.11 (depending on the space), presumably those rents should have been higher in 1992 (than the $222.31 to $302.11) in order to yield the $335.00 per month rent effective February 1, 1993. Accordingly, should there ever be a fair return adjustment petition for that park, the gross income for the base year (1992) shall be deemed $328.55 per space.

The March 17, 1992, agreement was due to expire on December 31, 1996, and the parties to that agreement met during 1996 to discuss the terms and conditions of a revised mobilehome rent stabilization agreement.

The parties to the March 17, 1992, agreement reached agreement on a revised mobilehome rent stabilization agreement ("the November 1996 agreement").

The one park owner who had not entered into the March 17, 1992, agreement was offered the opportunity to participate in the November 1996 agreement but again refused to do so.

The November 1996 agreement is due to expire on December 31, 2001; the parties to that agreement met during 2001 to discuss terms and conditions of a revised mobilehome rent stabilization agreement.

With the exception of one park owner (for the property at 785 Rose Avenue), the city and the park owners have been unable to agree upon terms and conditions for a new agreement.

Due to the lack of a significant vacancy factor and the high cost of moving mobilehomes owned by the residents in the parks, the residents do not have an alternative of relocating to other parks in which rents may be more reasonable. Mobilehome residents, 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 mobilehome 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 mobilehome and loss of appurtenances such as integrated landscaping and supporting structures inconsistent with the new location.

Two of the parks are senior parks and most of the residents are senior citizens, many of whom are living on fixed incomes. Because mobilehomes 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.

Based on numerous letters that have been written to the city council, as well as testimony heard at the city council where this ordinance was considered, the city council finds that the overwhelming majority of the residents who live at Vineyard Villa and the Hacienda mobilehome park, both of which have operated as senior parks, purchased their mobilehomes in those parks in good faith and on reliance from the park owners or their representatives that the park would continue to be operated as a senior park. But for said representations, these residents would not have purchased their mobilehomes in these parks. If the use of these parks were changed so that the parks would no longer be senior parks, the residents' quality of life would be dramatically and negatively affected, all as described in the numerous letters and correspondence provided to the council, which are incorporated herein by reference.

The city council declares that it is necessary in the public interest to establish a means by which to resolve the potentially divisive and harmful impasse between park owners and mobilehome residents. After consideration of numerous factors, among which are the relatively small number of parks located within the city, the level of organization and communication between mobilehome residents in each park, and the mandates of state law, regulations which best fit the needs of the city have been selected.

The regulations which are set forth in this chapter are designed to produce stability in rent increases for mobilehome residents while recognizing the rights of park owners to receive a fair return on their investment. The standards, utilizing the concept of net operating income and a 2002 base year, intend to provide the necessary adjustment mechanisms to meet constitutional requirements.

The council finds that the adoption of the ordinance codified in this chapter will not have a significant, substantial or adverse effect on the physical environment of the community because enactment of this ordinance involves no deviation from the general plan and no change in the present use of any property within the city.

(Ord. 1843 § 2, 2001)

§ 6.60.020 Definitions.

"Adjusted monthly rent"

is the monthly space rent for each mobilehome space in Pleasanton plus, under certain circumstances, the real property taxes (see Section 6.60.040(A)(2) of this chapter), plus the amortized capital improvements costs, if any, for such space.

"Base rent"

is the adjusted monthly rent: (1) less the amortized capital improvement costs; and (2) less the operating expenses and the real property taxes. (For example, if the monthly rent were $525.00 as of January 1, 2002, the capital improvement costs were $25.00, and the operating expenses and real property taxes were a total of $150.00 per space (through September 30, 2001), the base rent for 2002 would be $350.00.)

"Capital improvements"

are any new additions or betterments made to a park such as, but not limited to, a new swimming pool, a new building, a new fence or a new road where one of the same size, function and quality had not existed before. For the purpose of this chapter, rehabilitating or replacing any of the capital improvements, in threshold amounts set forth in Section 6.60.100 of this chapter, shall be treated as capital improvements.

"City manager"

means the city manager of the city of Pleasanton or the manager's designate.

"Cost of living (COL)"

means the change in the consumer price index for the San Francisco-Oakland-San Jose metropolitan area (all items index; all urban consumers) for the 12-month period ending in August each year as published by the bureau of labor statistics, U.S. department of labor. If this index shall delete the rental housing index, then a rental housing index shall be selected by the city manager for inclusion in computing the appropriate cost of living adjustments.

"Housing services"

means those services provided and associated with the use or occupancy of a mobilehome 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.

"Mobilehome park" or "park"

means any area or land within the city of Pleasanton where two or more mobilehome spaces are rented, or held out for rent, to accommodate mobilehomes used for human habitation.

"Monthly rent"

is the monthly space rent for each mobilehome space in Pleasanton before adding, under certain circumstances, the real property taxes (see Section 6.60.040(B)(2) of this chapter) plus the amortized capital improvements costs, if any.

"Net operating income"

means the gross income, as defined in Section 6.60.060(B)(2) of this chapter, less operating expenses and less real property taxes.

"Operating expenses"

means the direct costs of operating a mobilehome park as set forth in subsection 6.60.060B3 of this chapter, other than real property taxes. Operating expenses shall be those expenses paid from October 1st of one year to September 30th of the following year.

"Park owner"

is any owner of a mobilehome park within the city of Pleasanton.

"Prime rate"

means the prime rate for the first business day of the month in which construction of the capital improvement starts.

"Real property taxes"

are the real property taxes for the mobilehome park (other than delinquencies, penalties, and interest thereon), paid to the tax collector of Alameda County between October 1st of one year and September 30th of the following year or funds deposited between October 1st of one year and September 30th of the following year into an escrow or impound account for property taxes (other than for delinquencies, penalties and interest thereon) if such account, in the city's determination, is one from which, once funds are deposited, the owner cannot withdraw such funds except for paying real property taxes for the park.

"Resident" or "tenant"

means any homeowner or other person who lawfully occupies a mobilehome.

"Service reduction"

means any reduction in housing services which results in a cost savings to the park owner without a corresponding reduction in the moneys demanded or paid for space rent.

"Space rent"

means the consideration, including any bonus, benefits, or gratuity, demanded or received in connection with the use and occupancy of a mobilehome park or for the transfer of a lease for park space, services and amenities, subletting and security deposits, but exclusive of any amounts paid for the use of the mobilehome dwelling unit.

"Transfer of ownership"

means any voluntary or involuntary sale, assignment or transfer of ownership of a mobilehome or of any interest in the mobilehome, including, but not limited to, a fee simple interest, a joint tenancy interest, a life estate, or an interest evidenced by a land contract by which possession of the mobilehome is transferred and the resident retains title, but excluding transfers by a living trust, lease, gift, devise or inheritance to an existing spouse, surviving joint tenant, or a spouse as part of a dissolution proceeding or in connection with a marriage.

(Ord. 1843 § 2, 2001; Ord. 1847 § 1, 2002)

§ 6.60.030 Process concerning issues other than petitions for fair return adjustments, base year rent adjustments, and service reductions.

Initiation of Request. The city manager may meet on an issue or issues of interest to a resident or park owner, including the calculations used for a rent increase. The request must be in writing but shall not require any particular number of signatures beyond that of the person making the request. The request must identify the problem(s) to be addressed by the city manager and may recommend a solution.

Prerequisite to Written Request. The city manager may consider a request that involves a specific park but the request may be considered by the city manager only after the following events have occurred:

The person making the request has submitted the issue in writing to the park owner.

A satisfactory resolution of the issue has not been achieved within 30 days from the written submittal.

The city manager may select whatever professional persons are deemed necessary to assist in reviewing the request.

Binding Arbitration. If the city manager is unable to resolve the issue to the satisfaction of all parties, the city manager shall designate an impartial arbitrator who shall decide the issue through binding arbitration. The costs of arbitration shall be split equally between the affected park owner, the affected resident(s), and the city of Pleasanton. The city manager may elect for the city to assume the costs of arbitration for an affected park owner or the affected resident(s).

(Ord. 1843 § 2, 2001)

§ 6.60.040 Establishment of adjusted monthly rents and space rent adjustments.

Adjusted Monthly Rent. For purposes of calculating the adjusted monthly rents for 2003 and thereafter, the adjusted monthly rents for each space within the mobilehome parks are set forth in Exhibits A-1, A-2, A-3 and A-4 of this chapter and incorporated herein by reference.

Process to Adjust Rents; Notification to City Manager; Method of Calculation. A park owner shall only adjust space rents as provided in subsections (B)(1), (B)(2), and (B)(3) of this section. A park owner shall notify the city manager by October 2002 whether the park owner intends to use formula A or formula B in calculating annual rents. If a park owner fails to notify the city manager by October 1, 2002, which formula the owner intends to use, the owner shall use formula A. Thereafter the park owner shall not use a different formula without providing 12 months' written notice to the city of its intention to do so. For purpose of the calculations in this section, where the terms operating expenses, real property taxes, and capital improvement costs are used, calculate these expenses by dividing such items by 12 and further dividing by the number of mobilehome spaces within the mobilehome park.

Formula A: If a park owner selects formula A, the adjusted monthly rents shall be adjusted no more than once annually, beginning January 2003, and shall be calculated as set forth below:

From the adjusted monthly rent, subtract the capital improvement costs (see Section 6.60.100 of this chapter) if any. This is the monthly rent.

Multiply (a) by the cost of living, but not less than one percent nor by more than five percent.

Add the amount in (b) to the monthly rent.

Add the capital improvement cost, if any, to (c). Round to the nearest half dollar. This is the adjusted monthly rent.

If a park owner has selected formula A and if there has been a change of park ownership (see California Revenue and Taxation Code, Section 60 et seq.) and, as a result of that change of ownership, the "real property taxes" (as defined in this chapter) for the year (ending September 30th) are more than 105% of the real property taxes for the prior year (ending September 30th), the adjusted monthly rents shall be adjusted no more than once annually and shall be calculated as set forth below:

From the adjusted monthly rent, subtract the capital improvement costs (see Section 6.60.100 of this chapter) if any. This is the monthly rent.

Multiply (a) by the cost of living, but not less than one percent nor by more than five percent.

Calculate the real property taxes as provided in Section 6.60.050(A) of this chapter.

Add the amount in (b) and (c) to the monthly rent.

Add the capital improvement cost, if any, to (d). Round to the nearest half dollar. This is the adjusted monthly rent.

Thereafter, the adjusted monthly rents shall be adjusted no more than once annually and shall be calculated as follows:
a.	From the adjusted monthly rent subtract the capital improvement costs (see Section 6.60.100 of this chapter) if any, and the real property taxes. This is the monthly rent.
b.	Multiply (a) by the cost of living, but not less than one percent nor more than five percent.
c.	Calculate the real property taxes as provided in Section 6.60.050(A) of this chapter.
d.	Add the amount in (b) and (c) to the monthly rent.
e.	Add the capital improvement cost, if any, to (d). Round to the nearest half dollar. This is the adjusted monthly rent.

Formula B: If a park owner selects formula B, the adjusted monthly rents shall be adjusted no more than once annually, beginning January 2003, and shall be calculated as set forth below:

For 2003:

From the adjusted monthly rent, subtract the capital improvement costs (see Section 6.60.100 of this chapter), if any. This is the monthly rent.

Subtract from (a) the operating expenses and the real property taxes paid from October 1, 2000, through September 30, 2001. This equals the 2002 base rent.

Multiply (b) by the cost of living, but not by less than one percent or by more than five percent. (This number represents the park owner's "return on investment"; when added to the base rent in (b), it yields the base rent for 2003.)

Calculate the operating expenses paid between October 1, 2001, and September 30, 2002, and include any carryover operating expenses from the previous year or years; provided, however, that this amount shall not exceed 105% of the allowable operating expenses (including carryovers from previous year or years) paid between October 1, 2000, and September 30, 2001; to the extent it does, the excess operating expenses shall be carried over to the next year's operating expenses, but also subject to the 105% limitation.

Calculate the real property taxes paid between October 1, 2001, and September 30, 2002; provided, however, that if there has been a change of ownership (see California Revenue and Taxation Code Section 60 et seq.), and, regardless of when the change of ownership occurred, the real property taxes paid between October 1, 2001, and September 30, 2002, have increased more than 105% of the real property taxes paid between October 1, 2000, and September 30, 2001, the real property taxes shall be calculated as set forth in Section 6.60.050(B) of this chapter.

Add the amounts in (b), (c), (d) and (e). This equals the monthly rent for 2003.

Add the capital improvements cost, if any, to (f). Round to the nearest half dollar. This is the adjusted monthly rent for 2003.

See the examples in Exhibits B-1, B-2 and B-3 at the end of this chapter.
For 2004 and thereafter:
(Steps (a) and (b) that were performed for 2003 are not necessary.)
c.	Multiply the base rent for the previous year by the cost of living, but not by less than one percent nor by more than five percent. (This amount, when added to the base rent for the previous year, yields the base rent for the next year. For example, to calculate the base rent for 2004, multiply the 2003 base rent by the 2003 cost of living (but not less than one percent nor more than five percent) and add that amount to the 2003 base rent.)
d.	Calculate the operating expenses including any carryover expenses from the previous year or years; provided, however, that this amount shall not exceed 105% of the previous year's allowable operating expenses; to the extent it does, the excess shall be carried over to the next year's operating expenses but subject to the 105% limitation.
e.	Calculate the real property taxes; provided, however, that if there has been a change of ownership (see California Revenue and Taxation Code, Section 60 et seq.) and, regardless of when the change in ownership occurred, the real property taxes paid for the year (ending September 30th) have increased more than 105% of the real property taxes paid for the prior year (ending September 30th), the real property taxes shall be calculated as set forth in Section 6.60.050(C) of this chapter.
f.	Add (c) + (d) + (e) to the base rent to yield the monthly rent.
g.	Add the capital improvement costs, if any, to (f). Round to the nearest half dollar. This yields the adjusted monthly rent.
See the example in Exhibit B-3 at the end of this chapter.

Transfer of Ownership. There shall be no space rent adjustment upon a transfer of ownership.

Increases less than Maximum Permitted. Nothing herein shall be construed to require that the park owner increase rents in any given year by the maximum permitted under this chapter. If a park owner increases rents in any year by less than the maximum permitted pursuant to this section, then the park owner shall have the right in the next subsequent year to increase rents by the difference between the maximum permitted rent increase pursuant to this section for the two-year period and the actual rent increase in the first year.

Compliance with State Law: Rent increases permitted pursuant to this section shall not be effective and shall not be demanded, accepted, or retained until the park owner has given the notices required by state law.

(Ord. 1843 § 2, 2001)

§ 6.60.050 Calculations of real property taxes upon change of ownership.

For purpose of the calculations in this section, where the term real property taxes is used, calculate these taxes by dividing such taxes by 12 and further dividing by the number of mobilehome spaces within the mobilehome park.

Calculations for Formula A. If there has been a change of ownership (see California Revenue and Taxation Code Section 60 et seq.) and, regardless of when the change of ownership has occurred, the real property taxes for the year (ending September 30th) are more than 105% of the real property taxes for the prior year (ending September 30th), the real property taxes shall be calculated as set forth herein. (1) Calculate the difference between the real property taxes for the year (ending September 30th) in which the real property taxes increased more than five percent as a result of a change in ownership and the real property taxes in the prior year, with such difference divided by four. (For example, assuming the real property taxes increased in 2003 (ending 9/30) by more than 105% of the real property taxes in 2002 (ending 9/30) due to a change of ownership, for calculating the rent for 2004, (1) would be one-quarter of the difference between the September 30, 2003, and the September 30, 2002, real property taxes). The remaining dollar difference calculated in (1) (i.e., three-quarters of the difference) shall be added over the next three years in equal increments. In those three years (and assuming no further change of ownership), the real property taxes shall be calculated as follows: in the first year, (1) above and (2) the difference between the real property taxes for the year following the year identified in (1) and the year identified in (1); in the second year, (1) + (2) above and (3) the difference in the real property taxes between the second year following the year identified in (1) and the first year following the year identified in (1); in the third year, (1) + (2) + (3) above and (4) the difference in the real property taxes between the third year following the year identified in (1) and the second year following the year identified in (1).

This section shall survive the termination of this chapter if while this chapter is in effect: (1) there has been a change of ownership; (2) the remaining dollar difference calculated in (1) above has not been fully recovered as provided in this section; and (3) a new or revised ordinance providing for the stabilization of mobilehome rents has not been adopted.

Calculations For Formula B (2003). For calculating the monthly rents for 2003, if there has been a change of ownership (see California Revenue and Taxation Code Section 60 et seq.), and, regardless of when the change in ownership occurred, the real property taxes between October 1, 2001, and September 30, 2002 ("the September 30, 2002, real property taxes"), are more than 105% of the real property taxes between October 1, 2000, and September 30, 2001 ("the September 30, 2001, real property taxes"), the real property taxes shall be calculated as follows: add (1), the September 30, 2001, real property taxes, to (2), the difference between the September 30, 2001, and the September 30, 2002, real property taxes; then divide by four. (For example, assuming the real property taxes increased in 2002 more than 105% of the real property taxes in 2001 due to a change of ownership, for calculating the rent for 2003, (1) would be the September 30, 2001, real property taxes and (2) would be one quarter of the difference between the September 30, 2002, and the September 30, 2001, real property taxes.) The remaining dollar difference (i.e., three-quarters of the difference) between the September 30, 2001, and the September 30, 2002, real property taxes shall be added in 2004, 2005 and 2006, in equal increments. In those three years (and assuming no further change of ownership), the real property taxes shall be calculated as follows: in 2004, (1) + (2) above and (3) the difference between the real property taxes between October 1, 2002, and September 30, 2003, and the real property taxes between October 1, 2001, and September 30, 2002; in 2005, (1) + (2) + (3) above and (4) the difference in the real property taxes between October 1, 2003, and September 30, 2004, and the real property taxes between October 1, 2002, and September 30, 2003; in 2006, (1) + (2) + (3) + (4) above and (5) the difference in the real property taxes between October 1, 2004, and September 30, 2005, and the real property taxes between October 1, 2003, and September 30, 2004.

Calculations For Formula B (After 2003). After 2003, if there has been a change of ownership (see California Revenue and Taxation Code Section 60 et seq.) and, regardless of when the change in ownership occurred, the real property taxes for the 12 months beginning October 1st of one year and ending September 30th of the following year are more than 105% of the real property taxes in the previous twelve months, the real property taxes shall be calculated as follows: add (1), the real property taxes for the year (ending September 30th) before the year the real property taxes increased more than five percent as a result of the change of ownership, to (2), the difference between the real property taxes for the year (ending September 30th) that the real property taxes increased more than five percent as a result of a change in ownership and the real property taxes in (1); then divide by four. (For example, assuming the real property taxes increased in 2004 more than 105% of the real property taxes in 2003 due to a change of ownership, for calculating the rent for 2005, (1) would be the real property taxes between October 1, 2002, and September 30, 2003, and (2) would be one-quarter of the difference between the real property taxes between October 1, 2003, and September 30, 2004, and the real property taxes between October 1, 2002, and September 30, 2003.) The remaining dollar difference calculated in (2) (i.e., three-quarters of the difference) shall be added over the next three years in equal increments. In those three years (and assuming no further change of ownership), the real property taxes shall be calculated as follows: in the first year, (1) + (2) above and (3) the difference between the real property taxes for the year following the year identified in (2) and the year identified in (2); in the second year, (1) + (2) + (3) above and (4) the difference in the real property taxes between the second year following the year identified in (2) and the first year following the year identified in (2); in the third year, (1) + (2) + (3) + (4) above and (5) the difference in the real property taxes between the third year following the year identified in (2) and the second year following the year identified in (2).

This section shall survive the termination of this chapter if while this chapter was in effect: (1) there has been a change of ownership; (2) the remaining dollar difference calculated in (b) above has not been fully recovered as provided in this section; and (3) a new or revised ordinance providing for the stabilization of mobilehome rents has not been adopted.

(Ord. 1843 § 2, 2001)

§ 6.60.060 Fair return adjustments.

Purpose. It is expected that a rent increase as provided in Section 6.60.040 of this chapter will provide the park owner with a fair return on investment. However, in the event the park owner believes that such rent increases do not provide a fair return, the purpose of this section is to provide a mechanism for the review and approval of requested rental increases in excess of the adjustments provided in Section 6.60.040 of this chapter, and to allow a park owner to request rental increases in excess of that allowed in Section 6.60.040 of this chapter, when the park owner believes that the adjustment does not allow a fair and reasonable return on his or her investment. The standards to be utilized in determining whether a proposed increase allows for a fair return shall be based upon the terminology and concepts in subsection B of this section.

Terminology and Concepts. For the purpose of fair return adjustment hearings, the following terminology and concepts shall apply:

Net operating income equals gross income less operating expenses and real property taxes.

Gross income equals the following:

Gross rents computed as gross rental income at 100% paid occupancy; plus

Interest from rental deposits, unless directly paid by the park owner to the homeowners (interest shall be computed at the rate of four and one-half percent of all deposits, but if such deposits in fact earned greater interest, then actual interest earned shall be used); plus

Income from utilities (to the extent the charges are not deemed rent), laundry facilities, cleaning fees or services, garage, storage and parking fees; plus

All other income or consideration received or receivable for or in connection with use or occupancy of mobilehome/mobilehome spaces and related services; minus

Actual uncollected rents due to vacancy and bad debts to the extent that same are beyond the park owner's control. Where uncollected rents must be estimated, the average percentage of the preceding three years' experience shall be used or another comparable and reliable method.

Operating expenses shall include and exclude the following:

The following may be included as operating expenses:

Utility costs, including water, sewer and refuse, to the extent that such costs are included in space rent; provided, however, that there shall be no pass through of the cost to maintain or rehabilitate utilities if the park owner is accepting a rebate from the utility company for that purpose.

ii.

Management expenses including the compensation of administrative personnel, including the value of any mobilehome space offered as part of compensation for such services, reasonable and necessary advertising to ensure occupancy only, legal and accounting services as permitted herein, and other managerial expenses; provided, however, asset management fees shall be excluded.

iii.

Repair and maintenance expenses, including painting, cleaning, fumigation, landscaping, and repair of all standard services, including electrical, plumbing, carpentry, furnished appliances, drapes, carpets, furniture, pool, laundry, and recreational equipment.

iv.

Employee salary and benefits and owner performed labor upon documentation provided showing the date, time and nature of the work performed. There shall be a maximum allowable expense for this subsection (B)(3)(a)(iv) of five percent of gross income, unless the owner documents additional expenses for the benefit of residents.

Legal expenses which include attorney fees and costs incurred in connection with good faith attempts to recover rents owing, good faith unlawful detainer actions not in derogation of applicable law, to the extent such expenses are not recovered from residents, compliance with the mobilehome residency law, and all other legal costs directly related to the operation, maintenance and improvement of the park and legal costs related thereto. Attorney fees and costs incurred related to proceedings under this chapter are not allowable as operating expenses. No other attorney fees are allowable. Owners shall bear the burden of production and proof of the amount and purpose of such fees including rate per hour and hours spent. Fees which are clearly excessive in relation to customary and reasonable rates shall be disallowed.

vi.

Operating supplies such as janitorial, gardening and office supplies.

vii.

Insurance premiums prorated over the life of the policy; provided, however, that title insurance premiums are excluded.

The following shall not be included as operating expenses:

Debt service expenses, except as provided in Section 6.60.100(D) of this chapter.

ii.

Depreciation.

iii.

Any expense for which the park owner is reimbursed.

iv.

Any penalties, fees or interest assessed or awarded for violation of this or any other law.

Reserve or impound accounts.

vi.

Expenses related to the conversion or sale of the park rather than to the improvement and maintenance of the park, including the cost of title insurance.

vii.

Expenses unrelated to the improvement and maintenance of the park, such as an asset management fee, or expenses clearly excessive in relation to the customary and reasonable costs of such items.

"Real property taxes" shall be as defined in Section 6.60.020(M) of this chapter.

Base year gross income, operating expenses, and real property taxes for purposes of these fair return adjustment provisions shall mean gross income, operating expenses and real property taxes in the calendar year 2001.

In the event a fair return petition involves only a portion of the spaces in a park, the gross income, operating expenses and real property taxes shall be adjusted to reflect the portion of the park that is subject to this chapter. Income from and expenses attributable to spaces that are exempted from this chapter shall not be considered. (For example, if 40 percent of the homeowners are subject to this chapter, then only 40 percent of the income and expenses shall be considered.) The net operating income for the base year shall be determined only for the spaces affected by the petition.

Presumption that Base Year Net Operating Income Provided a Fair Return. For the purpose of determining the rent increase necessary to provide the park owner with a fair return on investment, it shall be presumed that the net operating income for the calendar year 2001 (the base year) provided the park owner with a fair return on investment.

Determination of Base Year Net Operating Income. To determine the net operating income during the base year, there shall be deducted from the base year gross income a sum equal to the actual base year operating expenses and the real property taxes unless the park owner demonstrates to the satisfaction of the hearing officer that some other 12 consecutive-month period is justified pursuant to this chapter.

Special Base Year Operating Income Adjustment. It may be determined by the hearing officer that the base year net operating income yielded other than a fair return on the park owner's investment. In that case, the base year net operating income may be adjusted accordingly. In order to make such determination, the hearing officer shall make at least one of the following findings:

The park owner's operating expenses and real property taxes in the base year were unusually high or low in comparison to other years. In such instances adjustments may be made in calculating such expenses so the base year of operating expenses reflects average expenses for the park over a reasonable period of time. The following factors shall be considered in making this decision:

The park owner made substantial capital improvements during the base year which were not reflected in the rent levels.

Substantial repairs were made due to damage caused by natural disaster, vandalism or other unusual cause.

Other expenses were unreasonably high or low due to unusual circumstances, notwithstanding prudent business practices.

The gross income during the base year was significantly lower than normal because of destruction of the premises and/or temporary eviction for construction or repairs, or other special circumstances.

Schedule of Increases in Operating Expenses and Real Property Taxes. Where the schedule of rent increases or other calculations require projections of a prior year's income and expenses, it shall be presumed, subject to rebuttal, that operating expenses, exclusive of property taxes and management expenses, increased at the cost of living, that property taxes increased at two percent per year, and that management expenses are five percent of gross income.

Authorized Adjustments. The hearing officer shall grant an increase to a park owner in excess of that allowed by Section 6.60.040 of this chapter if the hearing officer finds and determines that it is necessary to provide the park owner with a net operating income, after adjustment for 100% of the increase in the cost of living, equal to the net operating income realized for the park during the base year. The percentage rent increase needed to cover increases in operating expenses and real property taxes shall be calculated in the following manner which is structured to permit growth of the net operating income of the park and to provide a fair and reasonable return on investment based upon objective standards:

For 2002, adjust the base year net operating income by adding thereto 100% of the cost of living; subtract therefrom the 2001 net operating income; and divide by the 2001 gross rents.

For 2003 and thereafter, adjust the base year net operating income by adding thereto 100% of the increase in the cost of living; subtract therefrom the current year net operating income; and divide by the current year gross rents.

Return on Investment. It is presumed subject to rebuttal that this formula will provide a fair and reasonable return on investment. The park owner may establish by clear and convincing evidence that this formula will not provide a fair and reasonable return on investment, and that an alternative method should be used by the hearing officer in evaluating the petition. In evaluating the petition, the hearing officer may consider any relevant factors necessary to permit a fair and reasonable return on investment.

(Ord. 1843 § 2, 2001)

§ 6.60.070 Base year rent adjustments.

Purpose. It is presumed that the base year rent is reasonable and reflects general market conditions. However, in the event the park owner believes that such base year rent is not reasonable or does not reflect general market conditions, the purpose of this section is to provide a mechanism for the review and adjustment of a requested increase in the base year rent.

Presumption that Base Year Rent was Reasonable and Reflected General Market Conditions. For the purpose of determining whether the base year rent should be adjusted, it shall be presumed that the base year rent was reasonable and reflected general market conditions.

Base Year Rent Adjustments. The hearing officer may determine that the base year rent was not reasonable or did not reflect general market conditions. In that case, the hearing officer shall grant an increase to the base year rent if the hearing officer finds and determines that it is necessary to provide the park owner with an adjustment in order for the base year rent to be reasonable or to reflect general market conditions. In order to make such determination, the hearing officer shall consider the following:

Whether the park owner (or the park owner's predecessor in interest) had agreed to the base year rent;

Whether the base year rent is similar to rent for comparable mobilehome park property;

The base year rent was significantly lower than normal because of other special circumstances; or

Any other evidence which the hearing officer finds is relevant.

Presumption Concerning this Section. It is presumed subject to rebuttal that this section will provide methods to permit the park owner to show that the base year rent was not reasonable or did not reflect market conditions. The park owner may establish by clear and convincing evidence that this section does not provide such methods and that an alternative method should be used by the hearing officer in evaluating the petition. In that event, the hearing officer may consider any relevant factors necessary to permit the park owner to show that the base year rent was not reasonable or did not reflect market conditions.

(Ord. 1843 § 2, 2001)

§ 6.60.080 Fair return adjustment procedures.

Fair Return Petitions.

If a park owner wishes to increase rent for any mobilehome space more than as provided in Section 6.60.040 of this chapter, the park owner shall submit a fair return petition to the city manager.

A fair return petition shall contain at least the following information:

The address of the mobilehome park;

The name, address of each tenant and space number of each mobilehome park space for which a rent increase is requested;

The amount of the requested rent increase, stated in dollars and cents;

The facts supporting the requested rent increase, including supporting documentation;

The actual operating expenses and real property taxes by category for the mobilehome park for a two-year period ending no more than four months before the proposed effective date of the increase;

The current and proposed rent schedules for each space in the mobilehome park;

A schedule of other fees and income from the mobilehome park;

The vacancy rates in the mobilehome park during the preceding two-year period;

A list of current leases for spaces unaffected by the proposed increase extending beyond the effective date of the increase, showing the dates that each lease expires and the amount and date of change in rental rates for such lease;

Any anticipated increases in expenses for the mobilehome park for the 12-month period of the proposed increases, provided that the increases are certain and can be precisely calculated.

The park owner shall include in a fair return petition all rent increases desired for a particular mobilehome park for that year. No more than one petition may be filed per mobilehome park each year. The owner shall sign the fair return petition under penalty of perjury. At the time the park owner submits the fair return petition, the owner shall also submit the fee required by Section 6.60.130 of this chapter.

Information and records sufficient to document the need for the increase shall be provided. The city manager may contract with an independent certified public accountant to audit the petition and supporting documents and records so as to determine the accuracy, reliability and completeness of the petition and supporting information.

Notice of Complete Petition. Within 30 days after receipt of a fair return petition, the city manager shall determine if the petition is complete and shall notify the park owner of any additional information or documentation required to make the petition complete. The park owner shall submit such information within 30 days after notice from the city manager. Such time may be extended for good cause shown.

Notice to Residents. Within five days after receipt of a complete rent increase petition, the city manager shall give written notice of the petition, by United States mail, to the residents of the mobilehome spaces specified in the petition as follows:

As to mobilehome parks with 50 or fewer spaces, the city manager shall give written notice to all residents so affected. If a majority of the affected residents notify the city manager within 10 days that the requested rent increase is acceptable, all proceedings on the petition shall cease and the park owner may implement such increase as of the date such increase would otherwise have been effective without the intervention of this chapter.

As to mobilehome parks with more than 50 spaces, the city manager shall give written notice to the board of directors of the mobilehome park association. If the board notifies the city manager within 10 days that the requested rent increase is acceptable, all proceedings on the petition shall cease and the park owner may implement such increase as of the date such increase would otherwise have been effective without the intervention of this chapter.

Hearing Officer. A hearing officer appointed by the city shall consider and decide petitions for rental increases. The hearing officer shall be appointed by the city within 10 days after the city manager has accepted the petition as complete. The hearing officer shall meet one of the following criteria:

Completion of a juris doctor or equivalent degree from a school of law and completion of a formal course of training in arbitration which, in the sole judgment of the city, provides that person with the knowledge and skills to conduct a mobilehome space rent hearing in a professional and successful manner; or

Possession of the knowledge and skills to conduct a mobilehome rent increase hearing and completion of at least three mobilehome rent increase hearing proceedings that involved issues the city considers similar to those raised by the pending petition.

Hearings.

All hearings shall be open to the public. Hearings shall be held as necessary to hear and decide petitions within the allotted time, and such hearings may be continued as necessary to ensure that the hearing officer has all information he or she deems necessary to make a determination.

Except as otherwise set forth herein, the park owner shall bear the burden of production and proof of any factors affecting the need for the proposed rent increase. The park owner shall provide documentation sufficient to provide the hearing officer with such information as the hearing officer deems necessary to render an informed decision on the petition.

Representation. Any party to a hearing may be assisted by attorneys or other persons of the party's choice at the party's sole expense.

Hearing Procedure.

The hearing officer shall proceed in the manner required by law, including this chapter, and shall render findings which support his or her decision and which are supported by the evidence. The hearings shall not be conducted according to technical rules of evidence. Any relevant evidence shall be considered if it is the sort of evidence upon which reasonable persons are accustomed to rely in the conduct of business affairs, regardless of the existence of any common law or statutory rule which might make improper the admission of such evidence over objection in civil actions. Unduly repetitious or irrelevant evidence shall be excluded upon order of the hearing officer.

Although the hearing need not be conducted pursuant to the rules of evidence, the hearing officer shall afford the parties a fair hearing including, but not limited to, refraining from taking of any ex parte evidence. The hearing officer shall tape record meetings and make an official record of the hearing, which record shall constitute the exclusive record for the decision of the issues at the hearing. The record shall be obtainable for the cost of copying and shall include: all exhibits, papers and documents filed or accepted into evidence during the proceedings; a list of participants present; a statement of all decisions, orders or rulings; all final decisions and orders. A stenographic record of the proceedings may be obtained upon payment of the cost of preparing such a record by the party requesting such record.

Time For Decision. The hearing officer shall make a final decision within 90 days of the submission of a complete fair return petition, and no later than 21 days after the conclusion of the hearing on any petition. The time limits may be extended upon consent of the park owner.

Rent Increases. If the hearing officer's determination is that all or a portion of the proposed rent increase shall be granted under the circumstances, then the hearing officer shall grant all or such portion of the rent increase effective as of the time such increase would have been otherwise effective without the intervention of this chapter. Unpaid amounts of such increased rent may be billed to the homeowners in equal installments over a six-month period as a surcharge to the increased rent.

Notice of Decision. The park owner and homeowners shall be sent a notice of the hearing officer's findings and decision within seven days after the rendering of the decision.

Judicial Review. Review of the final decision of the hearing officer shall be by a court of competent jurisdiction and venue. Such review shall be conducted in accordance with the Code of Civil Procedure Sections 1094.5 and 1094.6.

(Ord. 1843 § 2, 2001)

§ 6.60.090 Base year rent adjustment procedures.

Base Year Rent Petition.

If a park owner wishes to increase the base year rent, the park owner shall submit a base year rent adjustment petition to the city manager.

A base year rent adjustment petition shall contain at least the following information:

The address of the mobilehome park;

The name, address of each tenant and space number of each mobilehome park space for which a base year rent increase is requested;

The amount of the requested base year rent increase, stated in dollars and cents;

The facts supporting the requested base year rent increase, including supporting documentation;

The current and proposed rent schedules for each space in the mobilehome park;

A list of current leases for spaces unaffected by the proposed base year rent increase extending beyond the effective date of the increase, showing the dates that each lease expires and the amount and date of change in rental rates for such lease.

The park owner shall include in a base year rent adjustment petition all such increases desired for a particular mobilehome park for that year. No more than one petition may be filed per mobilehome park. The park owner shall sign the base year rent adjustment petition under penalty of perjury. At the time the park owner submits the base year rent adjustment petition, the park owner shall also submit the fee required by Section 6.60.130 of this chapter and shall have submitted the fee required by Section 6.60.120 of this chapter.

The park owner shall provide information and records sufficient to document the need for the increase. The city manager may contract with an independent certified public accountant or an appraiser to review the petition and supporting documents and records so as to determine the accuracy, reliability and completeness of the petition and supporting information.

Notice of Complete Petition. Within 10 days after receipt of a base year rent adjustment petition, the city manager shall determine if the petition is complete and shall notify the park owner of any additional information or documentation required to make the petition complete. The park owner shall submit such information within 10 days after notice from the city manager. Such time may be extended for good cause shown.

Notice to Residents. Within five days after receipt of a complete base year rent adjustment petition, the city manager shall give written notice of the petition, by United States mail, to the residents of the mobilehome spaces specified in the petition as follows:

As to mobilehome parks with 50 or fewer spaces, the city manager shall give written notice to all residents so affected. If a majority of the affected residents notify the city manager within 10 days that the requested base year rent adjustment is acceptable, all proceedings on the petition shall cease and the park owner may implement such adjustments as of the date such adjustment would otherwise have been effective without the intervention of this chapter.

As to mobilehome parks with more than 50 spaces, the city manager shall give written notice to the board of directors of the mobilehome park association. If the board notifies the city manager with 10 days that the requested base year rent adjustment is acceptable, all proceedings on the petition shall cease and the park owner may implement such adjustment as of the date such adjustment would otherwise have been effective without the intervention of this chapter.

Hearing Officer. A hearing officer appointed by the city shall consider and decide petitions for base year rent adjustment petitions. The hearing officer shall be appointed by the city within 10 days after the city manager has accepted the petition as complete. The hearing officer shall meet one of the following criteria:

Possession of the knowledge and skills to conduct a mobilehome base year rent adjustment hearing and completion of at least three mobilehome base year rent adjustment hearing proceedings that involved issues the city considers similar to those raised by the pending petition.

Hearings.

All hearings shall be open to the public. Hearings shall be held as necessary to hear and decide petitions within the allotted time and such hearings may be continued as necessary to ensure that the hearing officer has all information he or she deems necessary to make a determination.

Except as otherwise set forth herein, the park owner shall bear the burden of production and proof of any factors affecting the need for the proposed base year rent adjustment. The park owner shall provide documentation sufficient to provide the hearing officer with such information as the hearing officer deems necessary to render an informed decision on the petition.

Representation. Any party to a hearing may be assisted by attorneys or other persons of the party's choice at the party's sole expense.

Hearing Procedure.

Time For Decision. The hearing officer shall make a final decision within 90 days of the submission of a complete base year rent adjustment petition, and no later than 21 days after the conclusion of the hearing on any petition. The time limits may be extended upon consent of the park owner.

Base Year Rent Adjustment. If the hearing officer's determination is that all or a portion of the proposed base year rent adjustment shall be granted under the circumstances, then the hearing officer shall grant all or such portion of the base year rent adjustment effective as of the time such increase would have been otherwise effective without the intervention of this chapter. Unpaid amounts of such adjusted rent may be billed to the homeowners in equal installments over a 12-month period as a surcharge to the increased rent.

Notice of Decision. The park owner and residents/association shall be sent a notice of the hearing officer's findings and decision within seven days after the rendering of the decision.

(Ord. 1843 § 2, 2001)

§ 6.60.100 Capital improvement costs.

Capital Improvements; Amortization. If a park owner constructs new capital improvements, the park owner shall amortize the costs, and shall be allowed to pass through to the residents the amortized costs, as provided in this section. In addition, attached as Exhibits C-1, C-2 and C-3 of this chapter are the capital improvements which exist at three of the parks and their original construction costs. If a park owner rehabilitates or replaces any existing capital improvements, a park owner shall amortize (as provided in this section), and shall be allowed to pass through to the residents, the difference between the original cost of the capital improvement and the cost to rehabilitate or replace the capital improvement, unless the useful life of such improvement has expired. In that case, a park owner shall amortize the entire cost of the capital improvement, and shall be allowed to pass through to the residents the amortized cost. Capital improvement costs shall not be amortized unless as to Vineyard Mobile Villa and/or Hacienda mobilehome park they exceed $10,000.00 and as to Fairview trailer park and/or the Pleasanton mobilehome park, they exceed $2,000.00; provided, however, that if in any one year the park owner of the Vineyard Mobile Villa and/or the Hacienda mobilehome park constructs two or more capital improvements, the cost of which each exceeds $5,000.00, then such costs may be amortized over a three year period. Except as provided in the previous sentence, capital improvement costs are to be calculated on an improvement by improvement basis and not collectively, although costs can be accumulated for the same capital improvement over a 12-month period. Any costs as to any particular capital improvement that are under the threshold amounts ($10,000.00/ $2,000.00) shall not be amortized. Any capital improvement costs that are for maintaining, replacing or repairing utilities shall not be amortized if the park owner receives a reimbursement from a utility company for that purpose.

Amortization Periods, Vineyard Mobile Villa and Hacienda Mobilehome Park. For the Vineyard Mobile Villa and the Hacienda mobilehome park, the capital improvement amortization periods shall be as follows:

$10,000.00—$14,999.00	3 years
15,000.00—19,999.00	4 years
20,000.00—29,999.00	5 years
30,000.00—39,999.00	6 years
40,000.00—49,999.00	7 years
50,000.00+	8 years

Amortization Periods for Parks with less than 50 Spaces. For any park with less than 50 spaces, the capital improvement amortization periods shall be as follows:

$ 2,000.00—$3,499.00	2 years
3,500.00—5,999.00	3 years
6,000.00—8,999.00	4 years
9,000.00—13,999.00	5 years
14,000.00—19,999.00	6 years
20,000.00—29,999.00	7 years
30,000.00+	8 years

Financing Costs. If the capital improvement costs are amortized, the park owner may include reasonable financing costs, not to exceed the prime rate plus two percent, for the capital improvement costs.

Removal of Capital Improvements Costs From Space Rent. Whenever a capital improvement cost has been amortized and passed through to the residents in the form of a rent increase on their monthly rent statements, the owner shall remove this cost as a line item on the monthly rent statements once the owner has fully recovered such cost.

Resident Approval for Certain Capital Improvement Costs. Capital improvement costs over $10,000.00 (for Vineyard Mobile Villa and Hacienda mobilehome park) and over $2,000.00 (for Fairview trailer park and the Pleasanton mobilehome park), other than capital improvement costs required to comply with a city, county, state or federal government act or regulation, shall require the prior approval of the residents in order for the park owner to amortize and pass through to the residents such costs. Capital improvement costs to rehabilitate or replace existing capital improvements (as set forth on Exhibits C-1, C-2 and C-3 of this chapter) shall not require prior approval of the residents in order for the park owner to amortize and pass through to the residents such costs unless such amortized costs in any one year exceed more than two percent of the lowest monthly rent then in effect to unless such amortized costs, during the term of this agreement, exceed more than six percent of the lowest monthly rent then in effect; provided, however, that as for the Fairview trailer park, such costs may exceed the two percent and six percent limitations but only if the city has reviewed the proposed capital improvement to be replaced or rehabilitated and determined that such capital improvement is necessary for the health and safety of the residents and that the cost is reasonable. Where "prior approval" is required the park owner shall put the matter to a vote of the residents (on the basis of one vote per household) and "prior approval" shall mean 50 percent plus one of the total number of households that cast votes. 30 days prior to putting the matter to a vote or, in the case of a replacement or rehabilitated capital improvement that does not require a vote, 30 days before incurring the costs for such improvement, the park owner shall inform the residents of the proposed capital improvement, its estimated costs, and the estimated increase in monthly rents and for what length of time the rent would be increased. The residents may request the city to review the cost estimate of the proposed capital improvement, whether the capital improvement is new or to replace/rehabilitate an existing improvement.

Information Statement to Residents. If the notice informing residents of the increase in rents includes any allocation for capital improvement costs, then that notice shall also include an itemization of what capital improvements were made and at what cost.

Disputes as to Certain Capital Improvements. Disputes regarding whether a given capital improvement is required by a government act or regulation, such as the duty of the park owner to maintain safe premises, shall be referred to the city manager for resolution. Disputes as to whether the useful life of an existing capital improvement has expired shall be governed by Section 6.60.030 of this chapter.

(Ord. 1843 § 2, 2001; Ord. 1847 § 1, 2002)

§ 6.60.110 Age restriction.

Each mobilehome within Vineyard villa and the Hacienda mobilehome park must have one full time occupant 55 years of age or older.

(Ord. 1843 § 2, 2001)

§ 6.60.120 Registration and administrative fee.

On January 1st of each year, each park owner within the city coming under the terms of this chapter shall file with the city manager a statement setting forth the number of spaces in its park regulated by this chapter. The city council shall, by resolution, establish an administrative fee to the park owner to offset the costs to the city of the regulatory activities provided pursuant to this chapter. No fee shall be imposed for any space exempted from this chapter pursuant to Civil Code Section 798.17. No more than one-half of the per space charge may be collected by the park owner from the resident of the space for which the fee is paid.

(Ord. 1843 § 2, 2001)

§ 6.60.130 Fee for fair return and base year rent adjustment petitions.

Time for Fee Submittal and Amount Thereof. At the time the park owner files a fair return or base year rent adjustment petition pursuant to Section 6.60.080 or 6.60.090 of this chapter, the park owner shall also submit a fee in an amount specified by the city council by resolution. The fee shall be used to pay costs of the city incurred in conducting proceedings on the fair return or base year rent adjustment petition pursuant to this section, including, without limitation, city staff time, noticing, audit costs, accountant costs, appraisal fees, postage and hearing officer cost. If the amount of the fee exceeds such costs, the balance shall be refunded to the park owner within 30 days after completion of the proceedings. In the event that the city determines that the costs incurred in conducting the proceeding exceeds the fee(s) paid by the park owner, the city shall notify the hearing officer who shall require the park owner to submit additional amounts to cover the city's costs. The hearing officer shall have the power to stay the proceedings until the fees are paid or to dismiss the petition with prejudice if the fees are not paid. The hearing officer shall not issue a decision until all appropriate fees are paid.

Recovery of Fee. If the hearing officer approves a rent increase that is equal to or greater than the rent increase requested by the park owner in the fair return or base year rent adjustment petition, the cost of the fee may be passed through to the homeowners affected by the rent increase, less any amount refunded by the city. If the hearing officer approves a rent increase that is less than the rent increase requested by the park owner in the fair return or base year rent adjustment petitions, the park owner shall only be entitled to reimbursement of a percentage of the fee paid, said percentage being the same as that percentage of the rent increase which was granted in comparison to the rent increase which was requested. Unless the park owner and the residents agree otherwise, the reimbursement shall be paid in equal installments with the rent payments for the 12-month period following completion of the proceedings and shall be divided equally among the residents of the mobilehome spaces affected by the rent increase. Such period may be extended in the discretion of the hearing officer.

Allocation of Costs. Except as provided in subsection A of this section, the park owner and the residents shall each bear their own costs incurred in the proceedings on the rent increase petition, including, but not limited to, attorney fees.

(Ord. 1843 § 2, 2001)

§ 6.60.140 Agreements.

Nothing in this chapter shall operate to restrict the right of a resident and a park owner to enter into an agreement in accordance with California Civil Code Section 798.17. Pursuant to Civil Code Section 798.17(c), the resident and a prospective mobilehome purchaser shall have the option to reject the offered rental agreement and accept a rental agreement for a term of 12 months or less, including a month to month agreement. If a new rental agreement is offered to a prospective purchaser, the prospective purchaser shall have 30 days from the date the rental agreement is first offered to review the agreement and to accept or reject it. A copy of the proposed agreement shall be provided to the prospective purchaser for this purpose. The prospective purchaser shall also have the right to rescind the rental agreement after signing it by notifying the park owner in writing within 72 hours of the execution of the rental agreement.

(Ord. 1843 § 2, 2001; Ord. 1847 § 1, 2002)

§ 6.60.150 Maintenance of amenities and service levels.

As of the effective date hereof, each park owner provides certain amenities and service levels to the residents. Each park owner shall not reduce these amenities or service levels without meeting and conferring with the residents prior to any reduction; provided, however, that nothing provided herein shall preclude a park owner from billing residents separately for utility service fees and charges as provided in Civil Code Section 798.41. The park owner of Vineyard Villa and the Hacienda mobilehome park shall provide a full time, resident manager who is available to perform 35 to 40 hours of light maintenance work weekly. In addition, maintenance standards applicable to Vineyard Villa and the Hacienda mobilehome park are in Exhibit D of this chapter and are incorporated herein by reference. As to any park owner who has chosen formula B, no park owner with 50 or more spaces shall increase these amenities or service levels such that the expenses relative thereto increase more than $500.00, or more than five percent over such expenses for the prior year (ending September 30th), whichever is less, unless: (a) the increases in expenses above $500.00 (or the five percent) are not passed on to the residents by a rent increase; (b) the residents give their prior approval; or (c) the city manager, after review of the matter, determines that the increased amenities/services are consistent with comparable parks in the East Bay. As to any park owner who has chosen formula B, no park owner with less than 50 spaces shall increase these amenities or service levels such that the expenses relative thereto increase more than $250.00, or more than five percent over such expenses for the prior year (ending September 30th), whichever is less, unless: (a) the increases in expenses above $250.00 (or the five percent) are not passed on to the residents by a rent increase; (b) the residents give their prior approval; or (c) the city manager, after review of the matter, determines that the increased amenities/services are consistent with comparable parks in the East Bay.

(Ord. 1843 § 2, 2001; Ord. 1847 § 1, 2002)

§ 6.60.160 Service reductions.

Meet and Confer. No park owner shall reduce the service levels existing at the park as of the effective date hereof without meeting and conferring with the residents prior to any such reduction. A majority of the residents within a park may file a petition alleging that service reductions have occurred. A hearing officer shall conduct a hearing thereon following the procedures set forth in Section 6.60.080 of this chapter.

Submission of Fee. At the time the residents file such petition, they shall also submit a fee in the amount specified by the city council by resolution for the purposes described in Section 6.60.130 of this chapter.

Burden of Production/Proof. The residents shall have the burden of production and proof that such service reductions have occurred. If the hearing officer finds that service reductions have occurred, the hearing officer shall determine the value of the service reductions and may offset the allowable rent increase by the value of the service reductions. Service reductions which affect all spaces subject to the proposed rent increase shall be prorated over all such spaces, regardless of the number of residents claiming such service reductions. If the hearing officer finds that service reductions have occurred, the park owner shall reimburse the residents for their payment of the fee set forth in subsection B of this section.

Factors to be Considered. In determining the value of any service reductions, the hearing officer shall consider the following factors:

The area affected by the service reduction.

The length of time the residents have been subjected to the service reduction.

The degree of discomfort the service reduction imposes on the residents.

The extent to which the service reduction causes the mobilehome or the space to be uninhabitable.

The extent to which the service reduction causes a material reduction in the usability of the mobilehome or space.

Other similar factors deemed relevant by the hearing officer.

(Ord. 1843 § 2, 2001)

§ 6.60.170 Duty of park owner to provide a copy of this chapter.

It shall be the duty of every park owner to provide a copy of this chapter to each resident who rents or leases a space from the park owner.

(Ord. 1843 § 2, 2001)

§ 6.60.180 Waiver of rights.

Waiver Void. Any waiver or purported waiver by a resident of rights granted under this chapter prior to the time when said rights may be exercised shall be void as contrary to public policy, except as provided in this section.

Waiver Not Conditional. It is unlawful for a park owner to require or attempt to require, as a condition of tenancy in a mobilehome park, a resident, or prospective resident, to waive in a lease or rental agreement, the rights granted to a resident by this chapter.

Denial of Tenancy Unlawful. It shall be unlawful for a park owner to deny or threaten to deny a tenancy in a mobilehome 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 resident by this chapter.

Lease Agreements. Nothing in this section shall preclude a park owner or resident, or prospective resident, from entering into a lease or rental agreement described in Section 6.60.140 of this chapter, provided that such lease or rental agreement is not procured by a requirement that it be entered into as a condition of tenancy in the mobilehome park, and is not procured under a threat of denial of tenancy in the mobilehome park.

(Ord. 1843 § 2, 2001)

§ 6.60.190 Enforcement.

A park owner, resident or the city may bring an action in the superior court compelling the other party to comply with the terms of this chapter. Violation of this chapter shall also be a misdemeanor.

(Ord. 1843 § 2, 2001)

§ 6.60.200 Nonexclusive remedy.

This chapter is not intended to substitute itself for any legal or equitable remedy otherwise available under law to a resident, tenant or owner of a mobilehome park and should be understood to provide remedies which are cumulative thereto and otherwise nonexclusive.

(Ord. 1843 § 2, 2001)

§ 6.60.210 No retaliation.

There shall be no retaliation against any participant in the proceedings leading up to this chapter, nor shall there be any retaliation against any person who exercises rights pursuant to this chapter.

(Ord. 1843 § 2, 2001)

§ 6.60.220 Applicability of chapter.

This chapter shall apply to all park owners and mobilehome tenancies in the city except: (a) those park owners who have a current mobilehome rent stabilization agreement with the city, and (b) tenancies which are exempt by state or federal law including, but not limited to, Civil Code Section 798.17.

(Ord. 1843 § 2, 2001)

§ 6.60.230 Severability clause.

If any section or portion of this chapter is found to be invalid, such findings shall not affect the validity of the remainder of the chapter, which shall continue in full force and effect.

EXHIBIT A-1 SPACE RENTS 2002.[1]

EXHIBIT A-2 HACIENDA MOBILEHOME PARK.[2]

EXHIBIT A-3 VINEYARD VILLA.[3]

EXHIBIT A-4 PLEASANTON MOBILEHOME PARK.[4]

EXHIBIT B-1 EXAMPLE 1.[5]

EXHIBIT B-2 EXAMPLE 2.[6]

EXHIBIT B-3 EXAMPLE 3.[7]

Exhibit C-1 FAIRVIEW TRAILER PARK CAPITAL IMPROVEMENTS EXISTING AS OF 1/1/02.[8]

EXHIBIT C-2 HACIENDA MOBILEHOME PARK CAPITAL IMPROVEMENTS EXISTING AS OF 1/1/02.[9]

EXHIBIT C-3 VINEYARD MOBILE VILLA CAPITAL IMPROVEMENTS EXISTING AS OF 1/1/02.[10]

EXHIBIT D MAINTENANCE STANDARDS.[11]

(Ord. 1843 § 2, 2001; Ord. 1843, 2001)