2012/04/10 City Council Ordinance 845
ORDINANCE NO. 845
AN ORDINANCE OF THE CITY OF ROHNERT PARK SUSPENDING THE
APPLICATION OF CHAPTER 9.71, "PAYMENT OF INTEREST ON SECURITY
DEPOSITS" OF TITLE 9, "PUBLIC PEACE, MORALS AND WELFARE," OF THE
ROHNERT PARK MUNICIPAL CODE
WHEREAS, pursuant to Chapter 9.71 of the Rohnert Park Municipal Code, a landlord
must pay interest on security deposits placed with the landlord by tenants pursuant to a rental
agreement;
WHERAS, Chapter 9.71 was originally enacted by the City Council in 1994 via the
adoption of Rohnert Park Ordinance Number 587, and wassubsequentIy amended;
WHEREAS, the purpose of the ordinance was to remedy an inequity the City Council
perceived to exist with regard to tenant security deposits;
WHEREAS, the City Council directed that no city personnel, funds or resources should
be used in administering or enforcing Chapter 9.71 ;
WHEREAS, in practice, staff has found that landlords seeking to achieve compliance
with Chapter 9.71 often rely on city personnel and resources to calculate the interest due
thereunder;
WHEREAS, Sll1ce the enactment of Chapter 9.71, interest rates have significantly
decreased;
WHEREAS, given the lower interest rates and the ability of landlords to retain an
administrative charge, the payment of interest to tenants, if any, is often nominal;
WHEREAS, the City Council reviewed the ordinance on March 13, 2012 and considered
alternatives;
WHEREAS, the City Council now desires to suspend the application of Chapter 9.71
until such time as the interests rates have rebounded to the point that benefits of the ordinance
outweigh the burden;
NOW, THEREFORE, the City Council of the City of Rohnert Park does ordain as
follows:
Section 1. Recitals. The City Council of the City of Rohnert Park does hereby find that the above
referenced recitals are true and correct and material to the adoption of this Ordinance.
Section 2. Amendments. Chapter 9.71 shall be amended as follows
Section 9.7 L020 subsection (B) shall be amended in its entirety to read as follows:
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Security Deposit
B. "Interest ~ate" or "rate of interest" means the average rate of interest, based on regular
(standard) consumer savings accounts paid by the three largest banks, by funds held, in Rohnert
Park.
A new section shall be added to Chapter 9.71 of the Rohnert Park Municipal Code (Payment ofInterest
on Security Deposits) to read as follows:
9.71.060 - Suspension. Notwithstanding any other provision of this Chapter, this Chapter shall
be suspended and be of no force or effect until such time as the interest rate, as defined by Section
9.71.020(B), reaches five percent (5%). At such time, the Housing Director shall return this
ordinance to the Council to consider lifting the suspension.
Section 3. Publication. The City Clerk is directed to certify the adoption of this ordinance and cause the
ordinance to be published in the manner required by law.
Section 4. Severability. If any section, subsection, sentence, clause or phrase of this Ordinance is for any
reason held to be invalid, such decision shall not affect the validity of the remaining portions of this
Ordinance. The City Council hereby declares that it should have adopted the Ordinance and each section,
subsection, sentence, clause or phrase thereof, ilTespective of the fact that anyone or more sections,
subsections, sentences, clauses or phrases be declared unconstitutional.
This ordinance was introduced on the 27th day of March 2012 and
DULY AND REGULARLY ADOPTED this 10th day of April 2012, by a vote of the City Council as
follows:
AYES: Four (4) Councilmemhers Ahanotu, Belforte, Callinan and Mayor
Mackenzie
NOES: None (0)
ABSENT: One (1) Councilmember Stafford
ABSTAIN: None (0)
A~T:.
f\~~) \}jJ\Jt~
Deputy City Clerk Carrie Willis
fut~Ki.edc:fiIx~dams
City Attorney
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Security Deposit