Resolution - 7110RESOLUTION NO. 7110
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF WEST COVINA, CALIFORNIA, ESTABLISH-
ING SUPPLEMENTAL GUIDELINES FOR THE ADMINI-
STRATION OF THE CITY'S MOBILE HOME RENT
STABILIZATION ORDINANCE.
WHEREAS, the City Council adopted Ordinance No. 1648 (the
"Ordinance"), establishing Chapter 15, Article 9 of the West Covina
Municipal Code providing for a mobile home rent stabilization program
in the City of West Covina; and
• WHEREAS, the Ordinance has been the subject of litigation
entitled Friendly Village of West Covina, Ltd. v. City of West Covina
et al; and
WHEREAS, both parties to the above action have negotiated
a resolution of the points at issue, embodied in a Stipulation Re Dismis-
sal of Entire Action; and
WHEREAS, such stipulation includes the adoption by the City
Council of certain interpretations and supplemental guidelines for
the administration of the.Ordinance;
NOW, THEREFORE, BE IT RESOLVED by the City Council of the
City of West Covina as follows:
SECTION 1. The Ordinance shall not be construed to alter,
modify, or impair any provision of a lease or rental agreement in excess
of twelve (12) months in duration entered into between an owner and
a tenant except that the provision of the Ordinance (Section 15-188
W.C.M.C.) relating to retaliatory evictions shall remain in force and
in effect.
SECTION 2. Upon the expiration of the lease or rental agree-
ment, the base rent for any space rented pursuant to a lease or rental
agreement in excess of twelve (12) months in duration shall be the
rental rate lawfully charged in the last month of the lease or rental
agreement.
SECTION 3. The following Administrative Guidelines for Supple-
mental Assessments shall be used by the Mobile Home Park Rental Review
Board (the "Board") in the performance of its responsibilities under
Section 15-181. The following administrative guidelines shall be in
addition to the guidelines established in Section 15-184.
The City of West Covina Mobile Home Park Rental Review Board
shall permit a mobile home park landlord to pass on to tenants a propor-
tionate share of certain increased operating costs listed below. All
pass-throughs shall be set forth separately on the tenant's rent state-
ment, shall not become base rent subject to annual increases, and shall
not be collected except for the period authorized by the Board.
• 1. All increases in local assessments, fees, and
charges, excluding commodity costs for utilities,
and any statewide assessments, fees, and charges
imposed only upon mobile home parks, but not includ-
ing increases in ad valorem real property taxes
or any other., -increases in taxes, charges, fees,
and assessments occasioned by changes in laws or
regulations having a statewide impact.
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2. Increased costs of owner's premiums for compre-
hensive park insurance to the extent that such
costs are in excess of 115% of the amount paid
in 1985, or in excess of 115% of the average annual
costs for comprehensive park insurance computed
since the adoption of this regulation or since
the last assessment for this purpose, whichever
is later.
3. The yearly amortized portion of costs of capital
expenses including financing costs thereof. These
costs include all expenditures that: (1) the
owner must treat as capital items, rather than
deductible business expenses, for federal income
tax purposes; and (2) are for items or improvements
having a useful life of at least five years. These
costs shall be amortized in accordance with any
useful life table utilzied by the Internal Revenue
Service to be supplied by the owner and adopted
by the City Council. If the owner has not financed
the capital improvement, there shall be added to
the cost of the capital improvement, to be amortized
over the life of the improvement, an amount equal
to the amount of financing costs the landlord would
have incurred had the landlord financed the capital
improvement over a period equal to the amortization
period of the capital improvement at an interest
rate equal to the prime commercial rate of the
Bank of America. Assessments collected pursuant
to this subsection are subject to verification
by the owner that such expenditures were treated
as capital expenses for tax purposes.
The Board shall further consider the following two (2) factors
in determining whether to grant an application for a supplemental rent
increase application pursuant to Section 15-184 of the Ordinance:
1. Costs of any new or additional services that
the owner has been required to provide tenants
by any state, federal, or local law or regulation.
2. Uninsured losses for damage to or destruction
of property. in excess of owner's deductible, if
any, under its insurance policies, such losses
to be amortized over the useful life of the destroyed
property.
SECTION 4. The City Clerk shall
of this resolution.
1985.
ATTEST:
APPROVED AND ADOPTED this llth
City . rk
certify to the adoption
day of November
v14A llao�ez-- _
Mayor Pro Tern,
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I HEREBY CERTIFY that the foregoing resolution was duly adopted
by the City Council of the City of West Covina at a regular meeting
thereof held on the 11th day of _ November 1985, by the follow-
ing vote of the Council:
AYES : Councilmembers:
NOES : Councilmembers:
ABSENT: Councilmembers:
APPROVED AS TO FORM:
Bacon, Manners, Chappell, Tennant
Shearer
(I
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City Attorney
City Cler
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