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HomeMy WebLinkAboutAgenda Packet - December 16, 1991 - CC AGENDA ITEM MEMORANDUM To: Honorable Chairman and Board of Directors From: Robb Steel, Redevelopment Director p Via: Henry Garcia, Executive Director fcr Date: December 16, 1991 Subject: Rescission of Sales Tax Ordinances BACKGROUND The Agency previously approved the early repayment of the Sales Tax Note with West Venture Development Company. Ordinance No.2406 of the City Council and Ordinance No. 3 of the Agency may be rescinded so that the sales taxes flow to the City's General Fund. RECOMMENDATION 1. Adopt City Council Ordinance rescinding Ordinance No. 2406. 2. Adopt Agency Ordinance rescinding Ordinance No. 3. RRS/cbf e:\agenda\resctax.itm / /9'/ gr' •-7:01P- 12/12/91 12!05 1292132362700 BW&S LA MAIN AZUSA REDEV AGCY Z015/016 ORDINANCE NO, AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF AZUSA AMENDING SECTION 3 . 28 . 170 OF THE AZUSA MUNICIPAL CODE RELATING TO REDEVELOPMENT AGENCY SALES AND USF TAX CREDITS TRF CITY COUNCIL OF THE CITY OF AZUSA DOES ORDAIN AS FnL:.: WS ! Section :,, . 28 , 1?0 the Azusa Municipal read .r.;11-jiL.:14=t :-;2; Pa ytency Terzn required tc Ch-! have a t-771X tte anount of If hp. in the - SLAf nfr COUN'iY Of 1, :;S C7Tv - do hent,:by duly on 17_tt. dy cf Vcte , AYL : NOES: ABSENT: COUNILMMI , ABSTA : - . CouNCIMERS! CITY CLERK 1660l 1 /12/91 12 12:05 V92132362700 BW&S LA MAIN AZUSA REDEV A0CY Z016/016 ORDINANCE NO. AN ORDINANCE OF THE BOARD OF DIRECTORS OF THE REDEVELOPMENT AGENCY OF THE CITY OF AZUSA REPEALING ORDINANCE NO. 3 WHICH ADOPTED A SALES AND USE TAX FOR THE AZUSA RANCH CEN PROJECT THE BOAP7: OF D:RFCTORS OF THE REDEVELOPMENT AGENCY OF THE '.*'17A C-F AZUSA ORDAIN AS FOLLOWS: Orr ze No. 3 of the Redevelopment Agency t f n Ordinan.7.e of the BCard of Cit-y Azusa 1 31r the Az..la :::enter" 4s - • adoption of • in the tne f AZUZ. A. 1":7L CCUNLA :1"*.F CiTt oI Agency of the cs,f .pon .7.9 - ,•••, z.; AYES : - NOES : ABSENT: ABSTAIN: BOARDMEMsrPS . SECRETAPY 1666 . _ AGENDA ITEM a OF AZUSLa A 74.Cairo* y TO: HONORABLE MAYOR AND CITY COUNCIL MEMBERS FROM: ROY E. BRUCKN ) RECTOR OF COMMUNITY DEVELOPMENT VIA: HENRY GARCIA, CITY ADMINISTRATOR DATE: DECEMBER 16, 1991 SUBJECT: RENT STABILIZATION ORDINANCE At the last meeting, the City Council had its first reading regarding recent amendments to a rent stabilization ordinance. The City Attorney has amended the ordinance as directed by the City Council, attached hereto as Exhibit A. Since then, the Tenants and the Park Owners have held several meetings to negotiate more mutually-acceptable language in the ordinance. Their hard work has resulted in a number of changes which will result in a rent stabilization program acceptable to both the Tenants and the Owners. The changes which are offered to the City Council for consideration, are as follows: 5.56.020 DEFINITIONS Definition of CPI-U should be replaced with: "CPI-W shall mean the Consumer Price Index for Wage Earners in the Los Angeles-Long Beach-Anaheim area published by the United States Bureau of Labor Statistics. " 5.56. 030 THE MOBILEHOME RENTAL REVIEW BOARD Subsection (a) should be amended to read as follows: " (a) The Mobilehome Park Rental Review Board is hereby established and shall consist of five (5) members and (6) alternates. In order to provide varied and balanced backgrounds and experience, two (2) members and two (2) alternates shall be homeowners within Azusa mobilehome parks; /ai1d *AA/ Lite."1/1/Z9---- Page 1 of 8 ■■ 213 East Foothill Blvd., P.O. Box 1395, Azusa, California 91702-1395 two (2) members and two (2) alternates shall be owners of Azusa mobilehome parks; one (1) member and two (2) alternates shall be 'public members' who are neither homeowners or owners. No attorney shall serve on the Board or be present to represent either side. " Subsection (b) should be amended to read: " (b) An alternate shall serve on the Board in the absence of a member of the Board. If more than one (1) member shall be absent, as many alternates as are available shall serve as needed to replace absent members so that hearings shall be conducted by a full Board of five (5) . Alternates shall be called first by same background, then by rotation for service on the Board. " Subsection (c) should be amended to read: " (c) Park owners shall appoint their members and alternates; homeowners, through their park association or resident representatives, shall appoint their members and alternates. Said members and alternates shall be approved by a majority vote of the City Council for a one (1) year term and until a successor is appointed. The 'public member' and alternates shall be mutually agreed upon by the existing members of the Board and approved by a majority vote of the City Council. Any member or alternate may be removed, with or without cause, by a majority vote of the Board. Should a vacancy exist, an appointment shall be made by a majority vote of the Board and approved by a majority vote of the City Council for the unexpired portion of the term. The compensation of Board members shall be determined by the City Council. " Subsection (d) should be amended to read: " (d) If a member of the Board is absent from three (3) successive regular meetings without being excused by the Board, or is absent for any reason for more than six (6) regular meetings in any twelve (12) month period, the office of such member may be vacated and the Board Chair shall immediately notify the Department, who shall notify the City Council that said office is vacant. Upon such notification, a successor for the remainder of the term of such member shall be appointed by the Board effective upon ratification by the City Council. " Page 2 of 8 Subsection (e) should be amended to read: " (e) The Board shall establish the time of any hearings or meetings held pursuant to this chapter, and such hearings or meetings shall be held in the City Hall or any other place stated by the City Council as often as the Board determines to be necessary to discharge its duties hereunder. " 5.56.040 EXEMPT LEASES This Section should be modified to read as follows: "5.56. 040 EXISTING AND EXEMPT LEASES. (a) Notwithstanding any provisions of this Chapter 5.56, rents agreed to under a written lease agreement in existence on December 1, 1991, may be collected until the expiration of the lease agreement. (b) Notwithstanding any provision of this Chapter 5.56, rents agreed to under a lease agreement exempt from local ordinance pursuant to California Civil Code Section 798. 17 may be collected until the expiration of such lease agreement. " 5.56. 050 BASE RENT. Subsection (a) should be amended to read: " (a) The initial base rent per month for each space within the Azusa Mobilehome Park shall be two-hundred fifteen dollars ($215) . The initial base rent per month for each space within the Sylvan Villa Mobilehome Park shall be five dollars ($5) less than the rent in effect for that space on December 1, 1991. The initial base rent per month for each space within the remaining parks covered by this Chapter shall be the rent in effect for that space on December 1, 1990, excluding pass-throughs, utilities and/or separate assessments, subject to increases equal to a proportionate share to each mobilehome space of an increase in a special City tax, benefit assessment, or service charge, between December 1, 1990, and the effective date of this Chapter. " 5.56.060 SPACE RENT AGREEMENTS. Subsections (d) , (e) and (f) should be added as follows: " (d) Homeowners shall have the right to a thirty (30) day review or rejection of any offered written rental agreements or leases. They shall have the right to rescind their signatures on said document within three (3) days of signing. Park management must obtain an Acknowledgment from the Page 3 of 8 homeowner, in writing, stating that they have in fact been advised of these rights. Management's failure to obtain written Acknowledgment from the homeowner may void the lease or rental agreement at the homeowner's option. (e) Prior to, or at the time of agreeing to rent a space to a new homeowner in a mobilehome park, the owner shall provide each new homeowner or prospective homeowner with a copy of the Azusa Mobilehome Park Rent Stabilization Ordinance, as currently in force. (f) No owner may require, directly or indirectly, that any homeowner or prospective homeowner sign a lease or rental agreement with a term in excess of twelve (12) months or that provides that it shall be exempt from local rent stabilization or provides for space rent in excess of that permitted by this Chapter 5.56 as a condition of tenancy in the park, and no owner may deny a tenancy to a prospective purchaser of a mobilehome in the park on the ground that the prospective purchaser will not sign such a lease or rental agreement. " A new section (5.56. 0630) should be added to read as follows: "5.56.063 PERMITTED RENT INCREASES WITHOUT MEDIATION, BOARD APPROVAL, OR ARBITRATION. (a) An owner may increase the rent for one or more mobilehome spaces, upon written notice to each affected tenant and the filing of a statement with the City showing that the increase meets all of the following conditions: (1) There have been no rent increases for the subject spaces for the past twelve (12) months. (2) There has been no decrease in services to the tenants, except for decreases permitted by Section 5.56. 100 of this Chapter; and (3) The proposed rent increase is no greater than the sum of (A) and (B) : (A) The increase in the United States Department of Labor Consumer Price Index for Wage Earners (CPI-W) for the twelve (12) month period ending ninety (90) calendar days prior to the date of receipt of the statement by the City, not to exceed seven percent (7%) , or ten dollars ($10) whichever is greater. Page 4 of 8 (B) Each space's proportionate share of: (i) An increase due under a valid, existing land lease, binding upon the owner and tenant, in existence on December 1, 1991; and/or (ii) An increase in a City special tax, benefit assessment, or a service charge. (4) The rent increase for each affected tenant shall go into effect on the anniversary date of the space as established by the respective park. (b) An owner may increase the rent for one or more mobilehome spaces in excess of the increase permitted in subsection (a) (3) of this section upon written notice to each affected tenant and the filing of a statement with the City showing that fifty-one percent (51%) or more of the affected spaces approve the rent increase. One vote shall be allowed per affected space. (c) An owner may pass through the cost of a capital improvement upon written notice to each affected tenant and the filing of a statement with the City showing approval of an itemized estimate by fifty-one percent (51%) or more of the affected spaces. One vote shall be allowed per affected space. " A new section should be added to read as follows: "5.56.067 PERMITTED RENT INCREASES BASED UPON MEDIATION. (a) In the event a proposed rent increase for one (1) or more spaces does not meet the criteria set forth in Section 5.56.063 of this Chapter, an owner may mail a notice to the affected tenants and to the Department requesting mediation. Said notice shall include the amount of the proposed increase and a brief statement of the basis for the proposed increase. (b) Upon notification by an owner, a five (5) member park mediation committee shall be formed to meet and endeavor to negotiate a mutually satisfactory rent increase. (c) The park mediation committee shall be composed of two (2) representatives designated by the owner and two (2) representatives selected by the tenants affected by the proposed rent increase. All four (4) such members shall Page 5 of 8 be selected within ten (10) days of notification. The fifth member of the park mediation committee shall be a mediator appointed by the unanimous vote of the other four (4) members. In the event the four (4) members selected by the owner and tenants cannot agree on the fifth member within twenty (20) days of the notification, the City Attorney shall name a professional mediator as the fifth member. Any fees payable to the mediator shall be borne equally by the owner and the affected tenants. (d) The park mediation committee shall establish procedures for the conduct of its affairs not otherwise in conflict with the provisions of this Chapter 5.56. A majority vote shall be required to take or effect any action. (e) If the park mediation committee negotiates a proposed increase, written notice thereof shall be given to all affected tenants of the park and the park owner. Within ten (10) days of such notice, the affected tenants shall take a secret ballot, with one vote per space. (f) If at least sixty-seven percent (67%) of the affected mobilehome spaces of the park consent to the increase, and the owner consents to the increase, then it shall be deemed approved and effective and shall be noticed to all affected tenants and the owner. If fewer than sixty-seven percent (67%) of the affected mobilehome spaces of the park consent to the increase, then it shall be deemed disapproved. (g) If the increase is disapproved as provided under this section, the owner may then file with the Department an application for approval by the Board pursuant to Section 5.56.070. 5.56. 070 PERMITTED RENT INCREASES BASED UPON AN APPLICATION APPROVED BY THE BOARD. Subsection (g) (1) should be amended to read: " (1) Changes in the Consumer Price Index for Wage Earners (CPI-W) in the Los Angeles-Long Beach-Anaheim area published by the United States Bureau of Labor Statistics. " Subsection (g) (5) should be amended to read: " (5) Changes in property taxes in excess of the two percent Page 6 of 8 (2%) annual increase or other taxes related to the subject mobilehome park. " Subsections (g) (6) , (g) (7) , and (g) (11) should be deleted, and the following numbers adjusted accordingly. 5.56.080 PERMITTED RENT DECREASES BASED UPON AN APPLICATION APPROVED BY THE BOARD. Subsection (g) (8) should be deleted and the following numbers adjusted accordingly. Subsection (g) (10) should be amended to read: " (10) Changes in the Consumer Price Index for Wage Earners (CPI-W) in the Los Angeles-Long Beach-Anaheim area published by the United States Bureau of Labor Statistics. " 5.56. 090 VACANCIES. Delete subsection (c) in its entirety. SUMMARY The commendable efforts by the Tenants and the Owners have resulted in a mutually-acceptable rent stabilization ordinance, which combines the procedures of the original Tenants' proposal with that of the La Verne type ordinance. The result is a 4-step process comprised of the following: 1. Annual rent increases would be permitted if certain criteria are met. 2 . If the criteria are not met, rent increases could be reviewed through park committee mediation. Any negotiated rent increases through mediation must be accepted by the owner and at least 67% of the affected spaces. 3 . If mediation fails, the Rental Review Board would consider the rent increase request in a hearing. 4 . Decisions by the Rental Review Board are appealable to an arbitrator. The focus of this approach is to provide every conceivable opportunity to achieve a mutually-acceptable resolution to rent adjustment issues, which is in Staff's opinion an important objective. Page 7 of 8 RECOMMENDED ACTION The City Council should introduce the Rent Stabilization Ordinance with the amendments contained herein, as proposed by the joint efforts of the Tenants and Owners. Page 8 of 8