CC Resolution 11641COUNCIL RESOLUTION NO. 11641
BEING A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF CAMPBELL AUTHORIZING EXECUTION OF A TRI-
PARTITE RENT STABILIZATION AGREEMENT WITH
TIMBER COVE MOBILE HOMEMOWNER'S ASSOCIATION,
TIMBER COVE JOINT VENTURE DBA TIMBER COVE
MOBILEHOME .COMMUNITY, AND THE CITY OF
CAMPBELL.
WHEREAS, the City of Campbell since 1993 has provided Timber Cove Mobile
Homeowner's Association members and parks owners, Timber Cover Joint
Venture dba Timber Cove Mobilehome Community, with conciliation and
mediation for proposed rent increases; and
WHEREAS, the mobile homeowners, park management, and the City of
Campbell have signed alive-year Tri-Partite Rent Stabilization Agreement every
five years for the last 20 years; and
WHEREAS, the current Tri-Partite Agreement expired January 31, 2014; and
WHEREAS, the mobile homeowners and park managers desire to sign a new
five-year agreement.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of
Campbell, California, that the City does enter into a new Tri-Partite Rent
Stabilization Agreement with Timber Cove Mobile Homeowner's Association and
Timber Cover Joint Venture dba Timber Cove Mobile Home Community, and
authorize execution of the attached agreement.
PASSED AND ADOPTED this 4`h day of February, 2014, by the following roll call
vote:
AYES: COUNCILMEMBERS: Baker, Low; xotowski, Cristina, Waterman
NOES: COUNCILMEMBERS: None
ABSTAINED: COUNCILMEMBERS: None
ABSENT: COUNCILMEMBERS: None
APPROVED:, ~-
Richard M. Waterman, Mayor
ATTEST: '
Anne Bybee, City Clerk
Attachment 2 I
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TIMBER COVE MOBILEHOME COMMUNITY
RENT STABILIZATION AGREEMENT
Agreement dated this day of February 2014, by and beriveen TIMBER COVE
MOBILEHOME COMMUNITY JOINT VENTURE doing business as TIMBER COVE
MOBILEHOME COMMUNITY, hereinafter referred to as "MANAGEMENT" or "TIMBER
COVE MOBILEHOME COMMUNITY", the CITY OF CAMPBELL; a Municipal Corporation,
hereinafter referred to as "CITY", and the residents ofT1MBER COVE MOBILEHOME
COMMUNITY. hereinafter referred to as "HOMEOWNERS".
A. Purpose:
The purpose of this Agreement is to resolve the issue of increases in rent and certain other
charges at the mobilehome community known as TIMBER COVE MOBILEHOME
COMMUNITY located at 870 Camden Avenue in the City of Campbell in the years set
forth herein.
This is a tripartite Agreement between MANAGEMENT, the I-[OMEOWNERS of
TIMBER COVE MOBILEHOME COMMUNITY, and the CITY. This Agreement is the
result of negotiations between the HOMEOWNERS and MANAGEMENT as defined
below, with the assistance of the CITY.
B. Definitions:
"HOMEOWNERS". All persons who currently hold, and come to hold during the
term of this Agreement, tenancy for a mobilehome space at TIMBER COVE
MOBILEHOME COMMUNITY under a fully executed rental agreement with the
community.
2. "Bureau". The Federal Bureau of Labor Statistics orany successor.agency that
issues or will issue the indexes or data referred to in subparagraph 3.
"Price Index". Consumer Price 'Index (CPI) for all Urban Consumers,
SF/Oakland/San Jose, published by the • Bureau, or• any other., measure
subsequently employed by the Bureau in lieu of such price index that measures the
cost oPliving locally, from August to August of each year during the term of
this Agreement Currently, Civil Code Section 798:30, a~ provision ~of the
California Mobilehome Residency Law, provides that MANAGMEMENT shall
give a~HOMEOWNER at least ninety (90) days' written notice of any increase in
his or her rent. In the event that, during the term of this Agreement, that provision
of the Civil Code, or any other relevant provision should be amended to require a
longer period of written notice of rent increase to HOMEOWNER, then the
appropriate Price Index will be used so that calculation of the annual base rent
increases pursuant to Section D can be made.
4. "MANAGEMENT". TIMBER COVE JOINT VENTURE doing business as
TIMBER COVE MOBILEHOME COMMUNITY 'or their designated
.representatives.
5. "Base Rent". Monthly rent for the mobilehome space, exclusive of any separately
' itemized utilities or other separately itemized charges, plus any base rent increases
as provided for in this Agreement.
6. "Additional Base Rent". Increases in monthly base rent for the mobilehome
space. including increases pursuant to Section D, Annual Base Rent Increases; and
Section E, Government or Quasi-Government Mandated Costs, which increases
become a part of the Base Rent.
7. "Rent Increase". Any additional space rent demanded of or paid by a tenant for a
mobilehome space.
8. "Space Rent". Money demanded or received in connection with the rental of a
mobilehome space at TIMBER COVE MOBILEHOME COMMUNITY,
including any bonus, benetit or gratuity, demanded or received in connection with ~~
the use and occupancy of a mobilehome space, but exclusive of any amounts paid
for the use of the. mobilehome dwelling unit.
9. "CITY". The City of Campbell.
10. "Government Required Capital Improvements". An addition or improvement to
the park, or assessment against the park, including a substantial rehabilitation or
replacement of an existing capital improvement in the park required or mandated
by any governmental body or agency, including but not limited to the CITY, the
County of Santa Clara, the State of California, or the United States of America.
1 I. "Emergency or.Disaster Related Occurrence or Event". A sudden event resulting
from earthquake, fire, flood, or other natural occurrence; or a major malfunction
of any of the park's underground or sewer systems, over which the Management
has no reasonable control, and which was not caused by Management's willful
misconduct or gross negligence. This definition is intended to be illustrative and
not exclusive. '
C. Term:
The term of this Agreement shall commence on February 1, 2014 and terminate at
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midnight on January 31, 2019. Except as provided in this Agreement; the rent. in effect
on the February 1, 2018 date shall remain in full force and effect through .lanuary 31,
2019, and shall constitute the base rent upon which a rent increase, if any, will be added
on February 1, 2019. This Agreement may be extended for a similar term, or any term
acceptable to all parties to this Agreement, provided that any extension will be in writing
and signed by all the parties hereto.
D. Annual Base Rent Increases:
Base rent on all mobilehome spaces shall be increased by the greater of three percent
(3%) or seventy-five percent (75%) of the Price Index on the following dates:
-- February 1, 2015
-- February 1, 2016
-- February 1, 2017
-- February 1, 20] 8
-- February 1, 2019 '
E. Additional Factors:
Iri addition to the annual increase set forth in Section "D" above, rent and/or other charges
may be increased or separately assessed, as set forth below, in accordance with Articles 4
and 4.5 of the Mobilehome Residency Law, Civil Code sections 798.30 through 798.49.
' t•
1. Government or Ouasi-Government .Mandated Costs. Rent increases resulting
from Government or Quasi-Govenement mandated costs, as more fully described
in Subsections a. and b. below, once assessed, are rent and would become part of
the base rent.
a. Any increase in property taxes exceeding two percent (2%) may be passed
through to the HOMEOWNERS on a pro-rated basis as additional base
-rent. HOMEOWNERS' pro-rated share shall.be calculated on the basis of
the actual number of mobilehome spaces in the park.
b. Any new fees, assessments, bond related costs, taxes or other government
mandated costs not covered by Section ld, below, to be paid by the park
may be passed through to the HOMEOWNERS on a pro-rated basis as
additional base rent. Any increases in existing govemmentmandated costs
in excess of the annual percentage increase as defined above may be
similarly passed through as additional base rent: Any increases in existing
government mandated costs below the annual percentage increase may not
be passed through as additional base rent. HOMEOWNERS' pro-rata
share will be calculated on the basis of the actual number of mobilehome
spaces in the park.
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c. Any increase in base rent due to taxes, fees; assessments, bond related
costs or other government mandated costs not covered by Subsection I (d),
below, shall terminate-when such fees, assessments. bond related costs or
other government mandated costs are no longer assessed against the
property upon which the mobilehome park identified herein is located.
The following government or quasi-government mandated costs, once assessed, would
not become a part of the base rent, but would be due and payable by HOMEOWNERS
and separately listed on each HOMEOWNER'S rent bill and would be eliminated once
reimbursement to MANAGEMENT has been paid in full:
d. Any costs of any government required capital improvements, and/or
studies and/or related activities required as , a result of the studies,
occurring or beginning during the term of this Agreement in excess, of the
initial $50,000.00 per' project or event, may be passed through to the
HOMEOWNERS as additional rent on a pro-rated basis, provided that
they are amortized over a ten-year period, separately stated on the rent
bills, will not be subject to annual percentage increases, and are eliminated
once complete reimbursement has been achieved. HOMEOWNERS' pro- '
rata share will be calculated on the basis of the actual number of
mobilehome spaces in the park. Said total costs may be.passed through to
the HOMEOWNERS as provided above commencing at any time during
the .term of this Agreement. Costs arising from the above may be
generated from more than one contractor and will be added together to
arrive at the total amount of costs to be passed on to the HOMEOWNERS
as provided above.
e. Any fees, assessments or other charges permitted under State Law in rent-
controlled areas may be passed through to HOMEOWNERS. These costs will
be separately listed on each HOMEOWNER'S rent bill.
2. Emer enc or Disaster-Related Costs:
Any costs [o •repair damage to the park arising from any emergency or disaster-related
occurrence or event, as defined in Section B, Paragraph l 1, occurring or beginning during
the term of this Agreement, in excess of the initial $50,000.00, may be passed through to
the HOMEOWNERS as additional rent on a pro-rated basis, provided that they are
amortized over a ten-year period, separately stated on the rent bills, wi1P not be subject to
annual percentage increases, and are eliminated once complete reimbursement has been
achieved. HOMEOWNER'S pro-rata share shall be calculated on the basis of the actual
number of mobilehome spaces in the parka These costs will be net of any insurance
reimbursement. Management shall maintain, throughout the term of this Agreement,
property insurance as is customarily placed on mobilehome parks in Northern California,
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so long as coverage is reasonably available at commercially reasonable rates. Costs to
repair the damage per event or occurrence may be generated from more than one
contractor and will be added together to arrive at the total amount of costs to be passed
through to the HOMEOWNERS as provided above.
F. Utilities
MANAGEMENT retains the right to sub-meter o"r to separately charge for any'
utility service in accordance with State law. Should MANAGEMENT decide to separate out,
such utility charges, MANAGEMENT agrees to meet with a committee chosen by
HOMEOWNERS to explain the rationale for the separation of the utility charges. '
G. Rent Increases on Resale:
1. In the case of anon-site. resale during the term of this Agreement of a mobilehome
located in the park as of the beginning date of this Agreement, MANAGEMENT' may
increase the. Base Rent to the Purchaser in the following amounts:
• [f a HOMEOWNER'S Base Rent at the time of sale is $600.00 to $699.99, the
new purchaser's Base Rent shall be increased by twenty vercent (20%)
• If a HOMEOWNER'S Base rent at the time of sale is between $ 700 00 to
$899.99, the Base Rent shall be increased by fifteenyercent (15%).
• If a HOMEOWNER'S Base rent at the time of sale is $900.00 and over, the Base
Rent shall be increased by ten vercent (10%l. '
2. Only one such increase iri the case of an on-site resale may be applied to each space
during the term of this Agreement.
3. The Base Rent increase amounts and limits stated above shall not apply in the
following cases: (1) The owner of the home has voluntarily removed it or caused it
to be removed from the space and has terminated his or her tenancy in the Park: (2)
Landlord has terminated the tenant s tenancy pursuant to one or more of the stated
reasons contained in Civil Code Section 798.56; (3) The home being sold has been
foreclosed upon by a financial institution or private lender. (4) There is a sale of an on
site mobilehome to a mobilehome dealer or other individual(s) who does not intend to
reside in the on site mobilehome. There is no limit on the amount Landlord may
increase Base rent'in the above four cases. '
4. In the event Tenant's mobilehome passes by will, devise, bequest, or operation of law to
Tenant(s)' heirs or successors, there shall be no rent increase at the time of such change
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of ownership of Tenant's home, other than the Annual Base Rent Increase set forth in
Section D.
5. There shall be no increase in rent if a HOMEOWNER, as defined in Section B 1, who
has resided in the home for at least six months, removes his mobilehome and
replaces it with a new mobilehome.
H. Information to be supplied by MANAGEMENT:
1. Within thirty (30) days after the effective date of this Agreement and upon re-
renting of each mobilehome space during the term of this Agreement,
MANAGEMENT shall supply each tenant with a current copy of this Agreement.
2. Whenever MANAGEMENT serves a notice of space rent increase on all current
HOMEOWNERS, MANAGEMENT shall also advise the 1-IOMEOWNERS in
writing of the percentage amount of the rent increase and of the amount that the
new rent will be. In addition, whenever any of the additional charges allowed by
Section E, Paragraphs 1 and 2, are to be initiated, MANAGEMENT shall also
advise each HOMEOWNER of the purpose of the expenditure, the total amount
of the pass-through, the monthly charge, and its.duration. It shall also furnish to
each HOMEOWNER a statement to the effect that it believes the rent increase to
be consistent with the terms of this Agreement.
3. If~HOMEOWNERS' rent is increased pursuant to Section E, MANAGEMENT'S
calculations with respect to said rent increases, as well as pertinent backup
documentation will be available for HOMEOWNER review at the park office, as
of the date of notice of the increase to the HOMEOWNERS.
1. Dispute Resolution Procedure:
The dispute resolution procedure described herein is the sole and exclusive
remedy to address the issue of whether or not a material term of this Agreement
has been violated by either MANAGEMENT or the HOMEOWNERS. If either
party believes that the other party has violated a material term of this Agreement,
then that party shall file a written request, on a form to be provided by the CITY,
requesting mediation of the dispute. Upon receipt of such a written request,
within fourteen (14) days thereafrer, the CITY shall refer the parties to the CITY
Manager or his designee. Before referring the parties to mediation as discussed
below, the CITY will first determine that the complaint alleged is a violation of a
material term of this Agreement. If the CITY finds that the complaint does not
allege a material violation of this Agreement, no mediation will be scheduled and
the parties will be so notified. The parties will participate in a mediation of the
dispute under the auspices of the. CITY Manager or his/her designee. Any
mediated settlement shall be reduced to writing and signed by MANAGEMENT,
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and the HOMEOWNER or HOMEOWNERS' authorized 'representative and the
mediator. If the dispute cannot be mediated, then the mediator will advise the
CITY in writing that the dispute cannot be mediated. Either party may then,
request of the CITY in writing that the dispute be submitted to arbitration. The
CITY shall bear the costs of providing the mediation; and the parties shall bear
their own costs and attorneys' fees in connection with the mediation.
2. A party may request arbitration only after the mediation process has been
completed and the mediator in writing has advised the CITY that the dispute
cannot be successfully mediated. Within seven (7) days of a written request for
arbitration, the CITY shall -refer the. dispute to the American Arbitration
Association. for arbitration. The arbitrator will be charged with determining
whether either party has violated a material term of this Agreement and declare a
' remedy in accordance with applicable law. The arbitrator(s) will be selected in
accordance with the procedures of the American Arbitration Association and the
arbitration will be conducted in accordance with the Rules of the .American
Arbitration Association. Each party to the arbitration shall bear its own attorneys'
tees and costs. '
J. Termination:
This Agreement shall terminate on midnight, January 31, 2019, unless repealed earlier by
mutual agreement in writing between MANAGEMENT -and HOMEOWNERS. Any
pass-throughs allowed by the Agreement, which had been initiated but not completed
during its term, may be continued in a manner consistent with the provisions of the
Agreement until they expire. '
K. HOMEOWNER Assistance Program:
MANAGEMENT agrees to continue offering to the HOMEOWNERS a rent deferral
program, which is designed to assist any homeowner who meets specific standards for
hardship and, is unable to pay all or a portion of any INCREASE in rent.
L. Attorneys' Fees:
In the event that it becomes necessary for any party to bring a lawsuit to enforce any of
the provisions of this Agreement, the parties agree that a court of competent jurisdiction
may determine and fix a reasonable attorneys' fee to be paid by the prevailing party.
M. Binding on Successors:
This Agreement is binding on the heirs, successors, and assigns of the parties hereto.
N. Amendment:
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This Agreement may be amended, modified, or changed by the parties provided that said
amendment, modification, or change is in writing and approved by all parties.
O. Civil Code:
The provisions of this Agreement are iri addition'to the provisions of the Mobilehome
Residency Law set forth in Articles 1 to 9, Chapter 2.5, Title IL Part Two of the Civil
Code. '
P. Interpretation:
All parties involved have prepared this Agreement and any legal presumptions as to the
interpretation of any ambiguity herein shall be applied equally against all parties
involved. This Agreement is in the nature of a settlement agreement.
Q, Entire Agreement:
This Agreement contains the entire agreement between the parties hereto. No promise,
representation, warranty or covenant not included in the.Agreement has been or is relied
on by any party hereto.
R. Counterparts:
This Agreement may be executed in multiple counterparts, each of which shall be deemed
an original and all of which shall constitute one agreement notwithstanding that' all
signatories are not signatories either on the same date or to the same' counterpart. A
signature page may be detached from the counterpart when executed and attached to
another counterpart, which other counterpart shall become the complete agreement.
S. Severability:
If any section or portion of this Agreement is found to be invalid, such findings shall not
affect the validity of the remainder of the Agreement, which shall continue in full force
and effect. ~~
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Continued on Page.9
T. Suspension of Rent Stabilization Request:
Dated:
In consideration of the execution of this Agreement by. MANAGEMENT, and to the
extent permitted by law, the CITY will suspend consideration of the adoption of a
mobilehome rent stabilization ordinance. [f, however. MANAGEMENT shall fail to
fulfill its obligations under this Agreement, then the CITY is free to consider enactment
of a mobilehome rent stabilization ordinance. If MANAGEMENT is
operating the park in compliance with the terms of this Agreement, it shall be exempted
from any mobilehome rent stabilization-ordinance for the remaining teen of this
Agreement.
By
ROSEMARIE A. MINASI
DIRECTOR OF PROPERTY
MANAGEMENT
TIMBER COVE HOMEOWNERS ASSOCIATION
Dated:
TIMBER COVE JOINT VENTURE
doing business as TIMBER COVE
MOB[LEHOME COMMUNITY
By
KEITH HUBBARD
PRESIDENT
Dated:
Dated:
By
BEVERLY AUTON
By
RICK HELMOND
Continued on Page l0
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CITY OF CAMPBELL
Dated:
By
Richard M. Waterman. Mayor
APPROVED AS TO FORM AND CONTENT:
Dated:
Dated:
MARGARET ECKER NANDA
ATTORNEY AT LAW
BY.
MARGARET ECKER NANDA
Attorney for TIMBER COVE
JOINT VENTURE doing business
as TIMBER COVE MOBILEHOME
COMMUNITY
William Seligmann
Campbell City Attorney
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