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2022/05/05 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 5, 2022 -- 6:00 P.M. 130 Avram Avenue, Rohnert Park Public Participation: By Order of the Health Officer of the County of Sonoma C19-25 all individuals are required to wear face coverings, with limited exemptions. To maximize public safety while still maintaining transparency and public access, members of the public are encouraged to observe the meeting on Cable Channel 26 or by visiting meeting central on our website https://www.rpcity.org/city_hall/city_council/meeting_central 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. 1. CALL TO ORDER 2. PLEDGE OF ALLEGIANCE 3. ROLL CALL (Finnigan___ Kirby___ Bolanos ___ Taylor___ Davis___) 4. ELECTION OF OFFICERS FOR THE YEAR 2022 5. ACKNOWLEDGEMENT OF POSTING OF AGENDA. Agenda posted in a minimum of three public places: Community Center, Public Safety Building & City Hall. 6. PUBLIC COMMENT (Items not on Agenda). Persons who wish to speak to the Board regarding an item that is not on the agenda may do so at this time. 7. CONSENT CALENDAR – APPROVAL OF MINUTES 7.1 Approval of the Draft Minutes of the Mobile Home Parks Rent Appeals Board meeting of October 7, 2021. 8. AGENDA ITEMS 8.1 Consider Adoption of Fiscal Year 2022-23 Budget 9. ITEMS FROM THE BOARD 10. ITEMS FROM THE STAFF 11. SECOND PUBLIC COMMENT PERIOD (Items not on Agenda) 12. NEXT REGULARLY SCHEDULED MEETING 13. ADJOURNMENT Minutes of the City of Rohnert Park Mobile Home Parks Rent Appeals Board Thursday, October 7, 2021 -- 6:00 P.M. 1. CALL TO ORDER Chair Finnigan called the Mobile Home Parks Rent Appeals Board meeting to order at 6:11 p.m. The meeting was conducted in person at City Hall and was open to the public, but the Agenda also included language on how to observe the meeting and submit public comment virtually. 2. PLEDGE OF ALLEGIANCE Led by Chair Finnigan. 3. ROLL CALL Present: Sarah Finnigan, Chair Gemma Bolanos, Commissioner Carla A. Taylor, Commissioner Brooke Lewis Davis, Commissioner Absent: Janeen Kirby, Vice Chair 4. ACKNOWLEDGEMENT OF POSTING OF AGENDA. Chair Finnigan asked staff to confirm that the Agenda was posted in a minimum of three public places: Community Center, Public Safety Building & City Hall. Housing Administrator Garcia confirmed. 5. PUBLIC COMMENT (Items not on Agenda). None. 6. CONSENT CALENDAR – APPROVAL OF MINUTES 6.1 Approval of the Draft Minutes of the Mobile Home Parks Rent Appeals Board meeting of March 4, 2021. 6.2 Approval of the Draft Minutes of the Mobile Home Parks Rent Appeals Board meeting of April 1, 2021. 6.3 Approval of the Draft Minutes of the Mobile Home Parks Rent Appeals Board meeting of May 6, 2021. ACTION: Moved/seconded (Taylor/Davis) to adopt Minutes of the Mobile Home Parks Rent Appeals Board Planning Commission Meetings of March 4, 2021, April 1, 2021 and May 6, 2021. Motion carried by the following 4-0-0 roll call vote: AYES: Finnigan, Bolanos, Taylor, and Davis, NOES: None, ABSTAINS: None, ABSENT: Kirby. 7. AGENDA ITEMS 7.1 Determine the Annual General Adjustment to the Maximum Allowable Space Rent for 2022 Housing Administrator Garcia presented this item. Recommended Action(s): Adopt Resolution 2021-03 determining the annual general adjustment of the maximum allowable space rent effective on or after February 1, 2022. PUBLIC COMMENTS: None. ACTION: Moved/seconded (Bolanos/Taylor) to adopt Resolution 2021-03 determining the annual general adjustment of the maximum allowable space rent effective on or after February 1, 2022. Motion carried by the following 4-0-0 roll call vote: AYES: Finnigan, Bolanos, Taylor, and Davis, NOES: None, ABSTAINS: None, ABSENT: Kirby. 7.2 Consider Adoption of a Resolution to Establish Registration Fees for 2022 Housing Administrator Garcia presented this item. Recommended Action(s): Adopt Resolution 2021-04 establishing registration fees for mobile home spaces for 2022. Chair Finnigan declared a recess at 6:40 p.m. Chair Finnigan reconvened the meeting at 6:47 p.m. PUBLIC COMMENTS: None. ACTION: Moved/seconded (Finnigan/Taylor) to adopt Resolution 2021-04 establishing registration fees for mobile home spaces for 2022, as amended. Motion carried by the following 4-0-0 roll call vote: AYES: Finnigan, Bolanos, Taylor, and Davis, NOES: None, ABSTAINS: None, ABSENT: Kirby. 8. ITEMS FROM THE BOARD None. 9. ITEMS FROM THE STAFF None. 10. SECOND PUBLIC COMMENT PERIOD (Items not on Agenda) None. 11. NEXT REGULARLY SCHEDULED MEETING: Thursday, November 4, 2021 12. ADJOURNMENT Chair Finnigan adjourned the regular meeting at 7:05 p.m. 1 DATE: May 5, 2022 TO: Rent Appeals Board FROM: Jenna Garcia, Housing Administrator SUBJECT: Item 7.1: Consider Adoption of Fiscal Year 2022-23 Budget RECOMMENDED ACTION: Adopt Resolution No. 2022-01, approving and adopting a budget for Fiscal Year 2022-2023. 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 set the rent ceiling for controlled rental spaces, issue orders, 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. Each 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, 2022 through June 30, 2023. DISCUSSION: Going into the current calendar year, the Board had $259,262 in its bank account. Of the $259,262, $100,000 has been set aside as reserves and $133,120 was budgeted for the fiscal year 2021-22. 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 2021-22 was $73,120. This left $86,142 remaining in the fund balance. Note that the fund balance assumes that all operational funds budgeted for fiscal year 2021-22 will be expended, which is not going to happen. The “true” fund balance as of July 1, 2022 will be $86,142 plus any unexpended operational funds budgeted for the period of July 1, 2021 through June 30, 2022. 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 2022/23 operational budget, which starts July 1, 2022. The Board will collect its registration fees in February 2023, 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 21-22, excluding the amount budgeted for landlord petitions $73,120 Fund Balance Funds remaining in the fund after operations and reserves are covered $86,142 Exhibit A to Resolution 2022-01 is the proposed budget worksheet for Fiscal Year 2022-23. The budget includes expected revenue and expenses for the upcoming fiscal year. Table 2 below shows the amount proposed for each category in the budget and a brief description of the cost. Table 2: Proposed Budget by Category Category Amount Description Total Expected Revenue $133,120 Includes $60,000 budgeted in the event of a landlord petition. This revenue is offset to the expenditure below. Landlord Petitions $60,000 Budgeted in the event of landlord petition, which are paid for by landlord. Offset in revenue section below. Tenant Petitions $10,000 Budgeted in the event of tenant petition. Tenants pay $50 per petition, remaining costs are paid for the Rent Appeals Board. Costs associated include duplication, postage, legal support and hearings. Total Staff $35,000 Includes costs of development services staff and the City Attorney in supporting the regular operations of the Board. Total Project $20,000 Funds budgeted for Records Retention Project, which will allow the Board to sort, purge and scan the Board’s physical files to be converted into an 3 electronic format. This is expected to be a two-year project. Total Operational $3,939 Includes office supplies, postage and shipping, advertising and the cost allocation plan. Total Expenses $128,939 Total expenses; includes the $60,000 in the event of a landlord petition. This expense is offset by the revenue above. Expenses without Landlord Petition $68,939 Total Revenue $133,120 Total expected revenue; includes the $60,000 in the event of a landlord petition. Revenue without Landlord Petition $73,120 FINANCIAL IMPACT: Adoption of Resolution 2022-01 would approve a fiscal year budget in the amount of $128,939, 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 $68,939, which would leave $17,203 (plus any unexpended funds from the fiscal year 21-22 budget) in fund balance and $100,000 in reserves. OPTIONS: 1. Adopt Resolution 2022-01, approving a budget for Fiscal Year 2022-23. (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, 2022. 2. The Board can also make modifications and approve an alternative budget and/or continue this item to its June meeting and adopt a budget at that time. (Not recommended.) Finance Manager Approval Date: 04/29/2022 Attachments (list in packet assembly order): 1. July 1, 2021 – March 31, 2022 Financial Report 2. Resolution 2022-01 a. Exhibit A: Proposed FY 2022-23 Budget Worksheet Assets Cash in Bank $259,262.02 Total Assets $259,262.02 Liabilities & Fund Balance Liabilities Accounts Payable 0.00 Petitioner Deposit 0.00 Total Liabilities - Fund Balance Unrestricted as of June 30, 2021 162,065.73$ Reserves 100,000.00 Current Budget Cycle Income (Loss) (2,803.71) Total Fund Balance as of June 30, 2021 259,262.02$ Total Liabilities and Fund Balance $259,262.02 City of Rohnert Park Rent Appeals Board Balance Sheet As of March 31, 2022 For Management Purposes Only Prepared by City Finance Department ATTACHMENT 1 FY 21-22 Budget Year to Date Actual Budget to Actual Variance Income Annual Rent Control Fee Income 39,831.00$ -$ 39,831.00$ Interest Income - 468.97 (468.97) Petition Revenue 60,000.00 60,000.00 Total Income 99,831.00$ 468.97$ 99,362.03$ Expenses City Staff Costs 26,500.00$ 2,483.68$ 24,016.32$ Petition Expenses 70,000.00 70,000.00 City Attorney Expenses - RAB 15,000.00 15,000.00 City Overhead Costs from Cost Allocation Plan* 1,244.00 1,244.00 - Special Projects Expense 20,000.00 20,000.00 Postage and Shipping 126.00 126.00 Office Supplies/Duplication 150.00 150.00 Liability Insurance - - Meetings and Travel 100.00 100.00 Advertising- Sonoma Media - - Contract Services (455.00) 455.00 - Total Expenses 133,120.00$ 3,272.68$ 129,847.32$ Net Income(Loss) (33,289.00)$ (2,803.71)$ (30,485.29)$ Fund Balance, June 30, 2021 262,065.73$ Fund Balance, March 31, 2022 259,262.02$ *Allocated costs of shared City services from the City Manager, Finance and Human Resource Departments. For Management Purposes Only Prepared by City Finance Department City of Rohnert Park Rent Appeals Board Income Statement July 1, 2021 -March 31, 2022 ATTACHMENT 2 RESOLUTION NO. 2022-01 A RESOLUTION OF THE ROHNERT PARK RENT APPEALS BOARD APPROVING AND ADOPTING A BUDGET FOR FISCAL YEAR 2022-23 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 2021-22 (Exhibit A) in the amount of $128,939; and WHEREAS, the Board considered and adopted $128,939 (Recommended) for its proposed Fiscal Year 2022-23 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 2022-23 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 5th day of May, 2022. ROHNERT PARK MOBILE HOME PARKS RENT APPEALS BOARD ______________________________________ ATTEST: Chair _______________________________ Board Secretary AYES: ___ NOES: ___ ABSENT: ___ ABSTAIN: ___ FY 2021-22 BUDGET WORKSHEET RESO 2022-01 - EXHIBIT A Proposed Budget Notes Expected Revenue: Landlord Petitions $60,000 Budgeted in event of landlord petition. Offset to expenditure below. Registration Fee $73,120 This is a projection, 2023 Registration Fee will be set in October 2022, based on actual expenditures from July 1, 2021- June 30, 2022. Total Expected Revenue $133,120 Petitions: 5211 Landlord Petition Expenditures $60,000 Budgeted in event of landlord petition, which are paid for by landlord. Offset in revenue section below. 5224 Tenant Petition Expenditures $10,000 Budgeted in event of tenant petition. Tenants pay $50 per petition, remaining costs are paid for the Rent Appeals Board. Total Petitions Expenses $70,000 Staffing Costs: 6110 City Attorney $10,000 6108 Development Services $25,000 Total Staff Expenses $35,000 Special Projects: 6109 Special Projects Expenses $20,000 Records retention project. Total Project Expenses $20,000 Operational Expenses: 5100 Office Supplies $150 5130 Postage & Shipping $126 5240 Advertising $100 6425 Cost Allocation Plan $3,563 Total Operational Expenses $3,939 Total Budgeted Revenue $133,120 Revenue without Landlord Petition $73,120 Total Budgeted Expenses $128,939 Expenses without Landlord Petition $68,939