§ 121.08 PROCEDURES FOR REVIEWING PETITIONS FOR FAIR RETURN RENT ADJUSTMENTS.
   Procedures for petitions for individual park rent adjustments.
   (A)   Right to petition. No petition for a fair return rent adjustment may be filed pursuant to this chapter until 30 days after this chapter goes into effect.
   (B)   Limit on frequency of petitions. Only one petition pursuant to this section may be filed for a mobilehome park within a 12 month period. An exception to this limitation shall be authorized in the event of extraordinary circumstances that could not reasonably have been foreseen at the time the prior petition was filed.
   (C)   Petition form required. Such petition shall be on a form prescribed by the City Manager.
   (D)   Petition fee. Upon the receipt of a fair rate of return application, the City Manager shall determine if the employment of experts will be necessary or appropriate for a proper analysis of the applicant's presentation. If the City Manager so determines, it shall also determine the anticipated cost of employing any such experts. The resulting figure shall be communicated to the applicant. The application shall not be further processed until the applicant has paid to the city the estimated cost of expert analysis. Any unused portion of the advance payment for expert analysis shall be refunded to the applicant.
   (E)   Contents of petition form. The form may require any information deemed relevant by the administrator. The form shall include, but not be limited to:
      (1)   A list of the names and addresses of all mobilehome owners and mobilehome tenants subject to the rent increase.
      (2)   A statement of the date the rent increase is proposed to be effective.
      (3)   The rent for each space in the park in the base year, the current year, the three prior years.
      (4)   An income and expense statement for the base year, the current year, and the three prior years.
      (5)   Evidence documenting the income and expenses claimed by the park owner.
      (6)   All other documentation upon which the park owner is relying on to justify the rent increase.
   (F)   Determination that the petition is complete. The City Manager will determine if the petition is complete within 30 days after the petition is submitted. If the application is incomplete, the City Manager will also inform the petitioner as to what additional information is required.
   (G)   Access to the petition. The documentation required by this section shall be available for inspection and copying by any person during the normal business hours of the city. The city shall make a copy of all submissions by the park owner and the residents in conjunction with a petition that shall be available in the form of an electronic PDF file.
   (H)   Time of hearing.
      (1)   A hearing officer shall commence an administrative hearing on the petition within not less than 60 nor more than 90 days of the date the park owner's petition is deemed complete. The hearing shall be completed within 15 days after it is commenced. These time deadlines may be extended if the hearing officer finds that there is good cause to commence and/or complete the hearing at a later date.
      (2)   The hearing may be scheduled during the normal business hours of the city unless the park owner or a majority of the residents that are subject to the petition request that the hearing be scheduled during the evening. The hearing shall be scheduled at a time that it is convenient for the residents' and park owners' representatives.
      (3)   The presentations of each party at the hearing and of the city staff and experts shall be limited to three hours each unless the hearing officer finds that there is good cause for providing a greater period of time.
   (I)   Notice of hearing. Written notice of the time, date and place of the administrative hearing shall be given at least 30 days prior to the hearing.
   (J)   Requests for additional information by opposing party.
      (1)   Either party may request that additional specific supporting documentation be provided to substantiate the claims made by the other party. The request shall be presented in writing to the hearing officer.
      (2)   The hearing officer may order production of such requested documentation, if the hearing officer determines the information is relevant to the proceedings.
   (K)   Submission of reports.
      (1)   If an analysis of the rent increase application is prepared by the residents it shall be submitted to the city and to the applicant at least 14 days prior to the hearing. (The applicant shall supply the residents an electronic address for said submission.)
      (2)   If an analysis of the rent increase application is prepared by the city staff and/or a consultant on behalf of the city, it shall be submitted to the parties at least 14 days prior to the hearing.
      (3)   Rebuttal reports may be submitted by the park owner and/or residents seven days prior to a hearing.
   (L)   Conduct of hearing.
      (1)   The hearing shall be conducted by hearing officer in accordance with such rules and regulations as may be promulgated by the City Council and any rules set forth by the hearing officer.
      (2)   The hearing officer shall have the power and authority to require and administer oaths or affirmations where appropriate, and to take and hear evidence concerning any matter pending before the hearing officer.
      (3)   The rules of evidence generally applicable in the courts shall not be binding on the hearing officer. Hearsay evidence and any and all other evidence which the hearing officer deems relevant and proper may be admitted and considered.
      (4)   Any party or such party's representative, designated in writing by the party, may appear at the hearing to offer such documents, oral testimony, written declaration or other evidence as may be relevant to the proceedings.
      (5)   The hearing officer may grant or order not more than two continuances of the hearing for not more than ten working days each. Additional continuances may be granted only if all parties stipulate in writing or if the hearing officer finds that there is a good cause for the continuance. Such continuances may be granted or ordered at the hearing without further written notice to the parties.
      (6)   A tape recording of the proceedings shall be made by the City Manager.
      (7)   The hearing shall be conducted in a manner that insures that parties have an opportunity to obtain documents and to obtain information about the theories and facts to be presented by the opposing parties an adequate time in advance of the hearing to enable preparation of a rebuttal.
   (M)   Representation of parties.
      (1)   The parties in any hearing may be represented at the hearings by a person of the party's choosing. The representative need not be an attorney.
      (2)   Written designation of representatives shall be filed by the City Manager.
      (3)   The written designation of the representative shall include a statement that the representative is authorized to bind the party to any stipulation, decision or other action taken at the administrative hearing.
   (N)   Hearing - findings and determination.
      (1)   The hearing officer shall submit to the City Manager a written statement of decision, together with written findings of fact upon which such decision is based, within 30 days of the close of the hearing.
      (2)   The hearing officer's decision shall include a determination in accordance with the provisions of this chapter of the amount of the rent increase, if any, which is required to provide the landlord with a fair return and findings as to the income, operating expenses, and net operating income of the park in the base year and the current year with a breakdown of allowable expenses in accordance with the categories set forth in the application form.
      (3)   The allowance or disallowance of any proposed rent increase or portion thereof may be reasonably conditioned in any manner necessary to effectuate the purposes of this chapter.
   (O)   Notice of decision. The City Manager shall forthwith mail copies of the decision to the park owner and all affected mobilehome owners and mobilehome tenants.
   (P)   Modification of decision in the event of mathematical or clerical inaccuracies. Any party alleging that the hearing officer's statement of decision contains mathematic or clerical inaccuracies may so notify the City Manager within 15 calendar days of the mailing of the decision. The City Manager shall refer such allegations to the hearing officer, who shall review the decision, make any corrections warranted, and re-file the statement of decision within ten working days of the referral by the City Manager. Upon re-filing of the statement, the decision shall be final.
   (Q)   Completion of hearing and issuance of decision. After a petition is deemed complete, the overall time for conducting a hearing and issuing a decision by the hearing officer shall not exceed 121 days.
   (R)   Appeal of decision of hearing officer to the Planning Commission.
      (1)   The hearing officer's decision may be appealed to the Planning Commission within 30 days after the decision is delivered to the park owner and the mobilehome owner's representative.
      (2)   The Planning Commission shall hear the appeal within 45 days after the appeal is filed.
      (3)   The Planning Commission shall hear arguments by the parties based upon the material submitted in the hearing before the hearing officer. Any party at a proceeding may also submit a transcript of the hearing at its expense.
      (4)   No further evidence shall be permitted at the hearing before the Planning Commission. The hearing before the Planning Commission shall be based solely upon the materials presented to the hearing officer at the evidentiary hearing.
      (5)   Within 30 days after the date of hearing the Planning Commission shall:
         (a)   Accept and confirm the recommendations of the hearing officer and adopt the hearing officer's findings and recommendations; or
         (b)   Amend the findings and decision of the hearing officer; or
         (c)   Send the matter back to the hearing officer for further hearings of the issue pursuant to any instructions provided by the Planning Commission, including a direction to consider additional evidence.
   (S)   Appeal of City Council's decision. The determination of the Planning Commission shall be subject to review pursuant to Cal. Code of Civil Procedure § 1094.5 as a final administrative determination, within the time constraints established pursuant to Cal. Code of Civil Procedure § 1094.6.
   (T)   Attendance of mobilehome owners at administrative hearing. Any decisions pursuant to this section shall apply to all mobilehome owners subject to the proposed rent increase regardless of whether such owner was present or represented at the hearing.
(Ord. 2008-015, passed 10-27-08)