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2024/05/02 Mobile Home Park Rent Appeals Board Agenda Packet City of Rohnert Park Mobile Home Parks Rent Appeals Board A G E N D A Thursday, May 2, 2024 -- 6:00 P.M. 130 Avram Avenue, Rohnert Park Public Comment: Please fill out a speaker card prior to speaking. Members of the public may also provide advanced comments by email at rab@rpcity.org. Comments are requested by 3:00 p.m. on the day of the meeting to be considered by the Commission. Emailed comments must identify the Agenda Item Number, unless the item is not on the agenda, in the subject line of the email. The emails will not be read for the record but will be provided to the Board. Please note that all e-mails sent to the Rent Appeals Board are considered to be public records and subject to disclosure under the California Public Records Act. 1. CALL TO ORDER 2. ROLL CALL (Taylor___ Bolaños ___ Davis___ Reymond___ Kirby___) 3. READING OF THE LAND ACKNOWLEDGMENT The City of Rohnert Park acknowledges Indigenous Peoples as the traditional stewards of the land. Let it be acknowledged that the City of Rohnert Park is located within the traditional homelands of the Federated Indians of Graton Rancheria, comprised of Coast Miwok and Southern Pomo peoples. 4. PLEDGE OF ALLEGIANCE 5. ACKNOWLEDGEMENT OF POSTING OF AGENDA Agenda posted in a minimum of three public places: Community Center, Public Safety Building & City Hall. 6. ELECTION OF OFFICERS FOR THE YEAR 2024 7. PUBLIC COMMENT (Items not on Agenda) 8. CONSENT CALENDAR – APPROVAL OF MINUTES 8.1 Approval of the Draft Minutes of the Mobile Home Parks Rent Appeals Board meeting of October 5, 2023. 9. AGENDA ITEMS 9.1 Amendment to Fiscal Year 2023-24 Budget and Update on Staff Activities Year-to-Date. 9.2 Consider Adoption of Fiscal Year 2024-25 Budget. 10. ITEMS FROM THE BOARD 11. ITEMS FROM THE STAFF 12. SECOND PUBLIC COMMENT PERIOD (Items not on Agenda) 13. NEXT REGULARLY SCHEDULED MEETING 14. ADJOURNMENT Minutes of the City of Rohnert Park Mobile Home Parks Rent Appeals Board Thursday, October 5, 2023 -- 6:00 P.M. 1. CALL TO ORDER Chair Taylor called the Mobile Home Parks Rent Appeals Board meeting to order at 6:02 p.m. The meeting was conducted in person at City Hall and was open to the public, and the agenda included language on how to observe the meeting safely with COVID-19 and submit public comments. 2. PLEDGE OF ALLEGIANCE Led by Chair Taylor. 3. ROLL CALL Present: Carla A Taylor, Chair Patrick Reymond, Vice Chair Brooke Lewis-Davis, Commissioner Janeen Kirby, Commissioner Absent: Gemma Bolaños, Commissioner Staff Present: Jenna Garcia, Housing Manager Michael Son, IT Analyst Clotile Blanks, Community Development Technician 4. ACKNOWLEDGEMENT OF POSTING OF AGENDA Chair Taylor asked staff to confirm that the agenda was posted in a minimum of three public places: the Community Center, Public Safety Building & City Hall. Clerk Blanks confirmed. 5. PUBLIC COMMENT (Items not on Agenda) Darlene Phillips, a resident of Valley Village Mobile Home Park, requested the Board’s guidance and assistance to address a tree hanging over her home. Debra Cade, Community Manager of Valley Village, addressed Ms. Phillips's concerns and provided clarification on the responsibilities regarding tree maintenance at Valley Village. A written public comment was received via email from L. Kurt Engelhart inquiring about limits to the amount of fees that can be collected from mobile home park residents. 6. CONSENT CALENDAR – APPROVAL OF MINUTES 6.1 Approval of the Draft Minutes of the Mobile Home Parks Rent Appeals Board Meeting of June 1, 2023. ACTION: Moved/seconded (Reymond/Davis) to adopt the minutes of the Mobile Home Parks Rent Appeals Board meeting of June 1, 2023. Motion carried by the following (4-0-1) roll call vote: AYES: Taylor, Davis, Reymond, Kirby; NOES: None; ABSTAIN: None; ABSENT: Bolaños. 7. AGENDA ITEMS 7.1 Determine the Annual General Adjustment to the Maximum Allowable Space Rent for 2024. Housing Manager Garcia presented on this item. Recommended Action(s): Adopt Resolution No. 2023-02 announcing the Annual General Adjustment (“AGA”) in mobile home space rents for 2024. PUBLIC COMMENTS: None. ACTION: Moved/seconded (Reymond/Kirby) to adopt Resolution No. 2023-02 announcing the Annual General Adjustment (“AGA”) in mobile home space rents for 2024. Motion carried by the following (4-0-1) roll call vote: AYES: Taylor, Davis, Reymond, and Kirby; NOES: None; ABSTAIN: None; ABSENT: Bolaños. 7.2 Consider Adoption of a Resolution to Establish Registration Fees for 2024. Housing Manager Garcia presented on this item. Recommended Action(s): Adopt Resolution No. 2023-03, establishing registration fees for mobile home spaces for 2024. ACTION: Moved/seconded (Reymond/Kirby) to adopt Resolution No. 2023-03, establishing registration fees for mobile home spaces for 2024. Motion carried by the following (4-0-1) roll call vote: AYES: Taylor, Davis, Reymond, and Kirby; NOES: None; ABSTAIN: None; ABSENT: Bolaños. 8. ITEMS FROM THE BOARD None 9. ITEMS FROM THE STAFF Housing Manager Garcia informed the Board that there will be an update to the agenda moving forward. This change involves a land acknowledgment that will now be listed as the second (2nd) item on the agenda. The Chair will read this language out loud following the Call to Order. Garcia requested City Manager, Marcela Piedra, to introduce herself to the Mobile Home Park Board. City Manager Piedra thanked the Board commissioners for their service. 10. SECOND PUBLIC COMMENT PERIOD (Items not on Agenda) None 11. NEXT REGULARLY SCHEDULED MEETING: Thursday, November 22, 2023 12. ADJOURNMENT Chair Taylor adjourned the regular meeting at 6:57 p.m. _________________________________ _______________________________________ Chair Recording Secretary – Clotile Blanks 1 DATE: May 2, 2024 TO: Rent Appeals Board FROM: Jenna Garcia, Housing Manager SUBJECT: Item 9.1: Amendment to Fiscal Year 2023-24 Budget and Update on Staff Activities Year-to-Date RECOMMENDED ACTION: Adopt Resolution No. 2024-01, approving a budget amendment for FY 2023-24, and receive an update on staff activities year-to-date in FY 2023-24. BACKGROUND & DISCUSSION: On June 1, 2023, the Mobile Home Park Rent Appeals Board (“Board”) adopted a budget for Fiscal Year 2023-24. The adopted budget for Fiscal Year 2023-24 included $15,000 for Development Services staffing and $20,000 for “Special Project Expenses.” The “Special Project Expenses” was for the records retention project, providing funding for staff to sort, purge and scan the Board’s physical files to be converted into an electronic file format. Although these were budgeted for under separate lines in the budget, they are both being tracked through the City’s timesheet system under the “Development Services staffing” category. This has resulted in the “Development Services staffing” category appearing to be over-budget while the “Special Project Expenses” line has no expenses billed to it. Because all this work is being performed by Development Services staff, it makes sense to track all expenses under the “Development Services staffing” category moving forward. Staff is requesting that the Board approve a minor budget amendment to the fiscal year 2023-24 budget to move the $20,000 budgeted under “Special Project Expenses” to the “Development Services staffing” category. This will not change or increase the total budget for the year, it will just move the individual line items within the budget. At the Board’s request in its October 5th, 2023 meeting, staff provided a break-down of staff time and activities for fiscal year 2022-23. In addition to being emailed to the Board, this was also posted on the Rent Appeals Board’s webpage on the City’s website. Staff have compiled an updated report of staff expenditures for fiscal year 2023-24 which covers July 1, 2023 – March 31, 2024. This is included as Attachment 1. A final version of this will be provided to the Board after the fiscal year closes on June 30, 2024. FINANCIAL IMPACT: Adoption of Resolution 2024-01 has no financial impact. The overall budget for Fiscal Year 2023-24 will not change, it will just move the $20,000 currently budgeted under the “Special Project Expenses” line to the “Development Services Staffing” line, increasing the total budgeted in that line from $15,000 to $35,000. CITY OF ROHNERT PARK Mobile Home Rent Appeals Board 2 OPTIONS: 1. Adopt Resolution 2024-01, moving the $20,000 currently budget under the “Special Project Expenses” line to the “Development Services Staffing” line, increasing the total budgeted in that line from $15,000 to $35,000. (Staff recommended.) This does not increase the overall budget for fiscal year 2023-24 and will ensure there are sufficient funds to cover staff expenditures. 2. Do not adopt Resolution 2024-01. (Not recommended.) This will result in “Development Services Staffing” line appearing to be overbudget while there are no expenses under the “Special Project Expenses” line. Attachments: 1. Rent Appeals Board Staff Expenditures July 1, 2023 – March 31, 2024 2. Resolution 2024-01 a. Exhibit A: Amendment to the Adopted FY 2023-24 Budget ITEM 9.1 ATTACHMENT 1 Page 1 of 2 Rent Appeals Board Staff Expenditures – Fiscal Year 2023-24 July 1, 2023 – March 31, 2024 This document reports the staff expenditures for July 1, 2023 through March 31, 2024 in fiscal year 2023-24. The total budgeted for staff in fiscal year 2023-24 is $35,0000, and the total staff cost for year- to-date is $19,957. The activities staff have been working on in fiscal year 2023-24 includes administration, records retention and monitoring. Each of these activities are described in more detail below, along with the current year-to-date subtotals for each category. After the fiscal year closes, staff will provide an updated report with the final numbers. Also included is a table with the fully burdened hourly rates for staff who are performing work for the Rent Appeals Board in fiscal year 2023-24. Total Staff Cost Year-to-Date: $19,957 Administration: $10,676 Administration is any direct staff work to support the Rent Appeals Board. This includes the following activities: • Preparing Rent Appeals Board agenda items, including typing up minutes from each meeting • Setting up, facilitating, clerking and tearing down for Rent Appeals Board meetings • Correspondence with individual Board commissioners throughout the year • Correspondence with the general public inquiring about mobile home park rent control and other Rent Appeals Board activities • Correspondence with mobile home park owners • Preparing and sending out notices to mobile home park owners • Creating and posting cancellation notices • Preparing financial data for internal staff budget meetings • Pulling and analyzing financial data for accuracy and completeness Records Retention: $2,907 The Records Retention Project is a two-year project to go through 20+ boxes of Rent Appeals Board files, sort, organize and inventory every individual file and send to the City’s contractor to scan and save on the electronic file system. ITEM 9.1 ATTACHMENT 1 Page 2 of 2 This includes the following activities: • Sorting through Rent Appeals Board files • Inventorying all individual files • Discarding duplicate files • Preparing file destruction inventory forms for files that are past retention date • Creating and following procedures for reviewing all files Monitoring (“Re-Registration”): $6,374 Monitoring is the annual review staff conduct of all mobile home parks in the City to confirm they are compliant with the City’s Mobile Home Park Ordinance. This is also referred to in the Ordinance and Rules and Regulations as “Re-Registration.” Mobile Home Park owners are required to submit re- registration forms each year by February 1st. Staff have been working to update these forms and move the reporting process to a database platform which is easier to review and analyze. This includes the following activities: • Creating and updating the Rent Appeals Board re-registration forms in excel • Researching all monitoring requirements under the City’s Mobile Home Park Ordinance and Rent Appeals Board Rules and Regulations • Working with City database provider to create and customize online monitoring tool Staff hourly rates (fully burdened, includes all taxes, benefits and overhead): Housing Manager $191.22 Admin Assistant $115.98 Community Development Technician $115.98 Management Analyst $138.79 ITEM 9.1 ATTACHMENT 2 RESOLUTION NO. 2024-01 A RESOLUTION OF THE ROHNERT PARK RENT APPEALS BOARD AUTHORIZING AN AMENDMENT TO THE FISCAL YEAR 2023-24 BUDGET MOVING $20,000 FROM THE “SPECIAL PROJECT EXPENSES” LINE TO THE “DEVELOPMENT SERVICES STAFFING” LINE WHEREAS, the Rohnert Park Rent Appeals Board (“Board”) adopted the Fiscal Year 2023-24 Budget on June 1, 2023 and has the authority to amend the budget; and WHEREAS, the Board budgeted $20,000 for “Special Project Expenses” and $15,000 for “Development Services Staffing”; and WHEREAS, Development Services staff are performing the work budgeted for under both of these line items and it is currently all being tracked in the City’s timesheet software under “Development Services Staffing”; and WHEREAS, the Board wishes to move the $20,000 currently budgeted for under “Special Project Expenses” to the “Development Services Staffing” line, increasing that line item to $35,000 total; and WHEREAS, this action does not increase the total budget for Fiscal Year 2023-24. NOW, THEREFORE, BE IT RESOLVED, by the Rohnert Park Rent Appeals Board that it does hereby authorize and approve an amendment to the Fiscal Year 2023-24 adopted budget to move the $20,000 currently budgeted for under “Special Project Expenses” to the “Development Services Staffing” line, increasing that line item to $35,000 total, as outlined in Exhibit A. BE IT FURTHER RESOLVED that the Housing Manager and Finance Director are authorized and directed to take the actions necessary to effectuate this resolution. DULY AND REGULARLY ADOPTED by the Rohnert Park Rent Appeals Board this 2nd day of May, 2024. ROHNERT PARK MOBILE HOME PARKS RENT APPEALS BOARD ______________________________________ ATTEST: Chair _______________________________ Board Secretary AYES: ___ NOES: ___ ABSENT: ___ ABSTAIN: ___ AMENDMENT TO THE ADOPTED FY 2023-24 BUDGET RESO 2024-01 - EXHIBIT A Adopted Budget Proposed Amendment Totals Expected Revenue: Interest $2,200 $0 $2,200 Landlord Petitions $60,000 $0 $60,000 Registration Fee $68,939 $0 $68,939 Total Expected Revenue $131,139 $0 $131,139 Petitions: Landlord Petition Expenditures $60,000 $0 $60,000 Tenant Petition Expenditures $10,000 $0 $10,000 Total Petitions Expenses $70,000 $0 $70,000 Staffing Costs: City Attorney $10,000 $0 $10,000 Development Services $15,000 $20,000 $35,000 Total Staff Expenses $25,000 $20,000 $45,000 Special Projects: Special Projects Expenses $20,000 -$20,000 $0 Total Project Expenses $20,000 -$20,000 $0 Operational Expenses: Office Supplies $150 $0 $150 Postage & Shipping $126 $0 $126 Advertising $100 $0 $100 Total Operational Expenses $376 $0 $376 Total Budgeted Revenue $131,139 $0 $131,139 Revenue without Landlord Petition $71,139 $0 $71,139 Total Budgeted Expenses $115,376 $0 $115,376 Expenses without Landlord Petition $55,376 $0 $55,376 1 DATE: May 2, 2024 TO: Rent Appeals Board FROM: Jenna Garcia, Housing Manager SUBJECT: Item 9.2: Consider Adoption of Fiscal Year 2024-25 Budget RECOMMENDED ACTION: Adopt Resolution No. 2024-02, approving and adopting a budget for Fiscal Year 2024-2025. BACKGROUND: The Rohnert Park Mobile Home Ordinance (“Ordinance”) was adopted pursuant to a vote of the people at a special election held on December 8, 1987. The Ordinance was established to prevent unreasonable rent increases while still assuring mobile home park owners a reasonable rate of return on their investment. The Ordinance established a rent appeals board (“Board”) consisting of five (5) appointed commissioners who serve four-year terms. The Board is empowered to announce the annual rent cap for controlled rental spaces, issue orders, establish rules and regulations, conduct hearings, and charge fees (“Registration Fees”) to finance its reasonable and necessary expenses. Each October, the Board establishes registration fees and announces the estimated annual registration fee per rent-controlled mobile home space on or before November 1st of each year. Annual Registration Fees are paid by each of the five (5) mobile home parks (collectively, “Parks”) on or before February 1st of each year. In May or June, the Board adopts a budget for the upcoming fiscal year period covering July 1 through June 30. At this time, the Board is being asked to adopt the fiscal year budget covering the period of July 1, 2024 through June 30, 2025. DISCUSSION: Going into the current fiscal year, the Board had $232,575 in its bank account. Of the $232,575, $100,000 has been set aside as reserves and $115,376 was budgeted for the fiscal year 2023-24. The budget included $60,000 for landlord petitions, which would have been offset by revenue collected through cost recovery if a landlord petition were filed. Excluding the $60,000 for landlord petitions, the budgeted expenses for fiscal year 2023-24 was $55,376. This left $77,199 remaining in the fund balance. Note that the fund balance assumes that all operational funds budgeted for fiscal year 2023-24 will be expended, which is not going to happen. The “true” fund balance as of July 1, 2024 will be $77,199 plus any unexpended operational funds budgeted for the period of July 1, 2023 through June 30, 2024. Reserves are funds set aside by the Board for specific purposes including the cost of tenant petitions that arise and unanticipated operational expenses. Funds in reserves may not be accessed without prior Board approval. Funds currently in fund balance will be utilized for the CITY OF ROHNERT PARK Mobile Home Rent Appeals Board 2 upcoming fiscal year 2024-25 operational budget, which starts July 1, 2024. The Board will collect its registration fees in February 2025, which will be added to fund balance. Table 1 below shows the current fund structure and the amount of funds available in each fund type. Table 1: Current Fund Structure Fund Type Definition Amount Reserves Money set aside for specific purposes, would cover tenant petitions and unanticipated operational expenses $100,000 Operational Funds Covers normal operational budgeted expenses for FY 22-23, excluding the amount budgeted for landlord petitions $55,376 Fund Balance Funds remaining in the fund after operations and reserves are covered $77,199 Exhibit A to Resolution 2024-02 is the proposed budget worksheet for fiscal year 2024-25. The budget includes expected revenue and expenses for the upcoming fiscal year. Table 2 below shows the proposed total for revenue and expenses. This includes $60,000 budgeted for a landlord petition. Per the Board’s Rules, landlords are responsible for paying for the cost of processing landlord petitions. For this reason, the $60,000 in expenses that is budgeted for landlord petition is offset by $60,000 in expected revenue. The “Expenses without Landlord Petition” line below shows the amount that is budgeted for using the Board’s fund balance. Table 2: Proposed Total Revenue and Expenses Category Amount Description Total Revenue $117,576 Total expected revenue; includes the $60,000 in the event of a landlord petition. Revenue without Landlord Petition $57,576 Total Expenses $115,376 Total expenses; includes the $60,000 in the event of a landlord petition. Expenses without Landlord Petition $55,376 FINANCIAL IMPACT: Adoption of Resolution 2024-02 would approve a fiscal year budget in the amount of $115,376, including $60,000 budget for landlord petitions, which would be offset by revenue collected through cost recovery if a landlord petition were filed. Excluding the $60,000 for landlord petitions, the budgeted expenses are $55,376, which would leave $21,823 (plus any unexpended funds from the fiscal year 2023-24 budget) in fund balance and $100,000 in reserves. 3 OPTIONS: 1. Adopt Resolution 2024-02, approving a budget for Fiscal Year 2024-25. (Staff recommended.) This budget is consistent with the Board’s priorities and will allow the Board sufficient funds to continue its work in the new fiscal year, which starts July 1, 2024. 2. The Board can also make modifications and approve an alternative budget and/or continue this item to the June 2024 meeting and adopt a budget at that time. (Not recommended.) Attachments: 1. Resolution 2024-02 a. Exhibit A: Proposed FY 2024-25 Budget Worksheet ITEM 9.1 ATTACHMENT 1 RESOLUTION NO. 2024-02 A RESOLUTION OF THE ROHNERT PARK RENT APPEALS BOARD APPROVING AND ADOPTING A BUDGET FOR FISCAL YEAR 2023-24 WHEREAS, paragraph N of Section 9.70.030 of the Rohnert Park Municipal Code authorizes the Rohnert Park Rent Appeals Board (“Board”) to finance its reasonable and necessary expenses by charging mobile home park owners an annual registration fee which may be passed through to residents on rent control in the form of rent increases prorated over the year; and WHEREAS, the Board received and reviewed a proposed budget for Fiscal Year 2024-25 (Exhibit A) in the amount of $115,376; and WHEREAS, the Board considered and adopted $115,376 (Recommended) for its proposed Fiscal Year 2024-25 Budget which will allow for the adequate implementation of the Mobile Home Ordinance according to the adopted Board rules. NOW, THEREFORE, BE IT RESOLVED, by the Rohnert Park Rent Appeals Board that it does hereby approve and adopt the proposed Fiscal Year 2024-25 Budget, a copy of which is attached hereto and is made a part of this Resolution. DULY AND REGULARLY ADOPTED by the Rohnert Park Rent Appeals Board this 2nd day of May, 2024. ROHNERT PARK MOBILE HOME PARKS RENT APPEALS BOARD ______________________________________ ATTEST: Chair _______________________________ Board Secretary AYES: ___ NOES: ___ ABSENT: ___ ABSTAIN: ___ FY 2024-25 BUDGET WORKSHEET RESO 2024-02 - EXHIBIT A Proposed Budget Notes Expected Revenue: Interest $2,200 Projected interest on money in the bank. Landlord Petitions $60,000 Budgeted in event of landlord petition. Offset to expenditure below. Registration Fee $55,376 This is a projection. 2025 Registration Fee will be set in October 2024, based on actual expenditures from July 1, 2023- June 30, 2024. Total Expected Revenue $117,576 Petitions: Landlord Petition Expenditures $60,000 Budgeted in event of landlord petition, which are paid for by landlord. Offset in revenue section below. Tenant Petition Expenditures $10,000 Budgeted in event of tenant petition. Tenants pay $50 per petition, remaining costs are paid for by the Rent Appeals Board. Total Petitions Expenses $70,000 Staffing Costs: City Attorney $10,000 Development Services $35,000 Includes administrative tasks, records retention and annual monitoring of home park owners to determine compliance with the City's Mobile Home Park Ordinance. Total Staff Expenses $45,000 Operational Expenses: Office Supplies $150 Postage & Shipping $126 Advertising $100 Total Operational Expenses $376 Total Budgeted Revenue $117,576 Revenue without Landlord Petition $57,576 Total Budgeted Expenses $115,376 Expenses without Landlord Petition $55,376