Operating expenses shall include the following:
A. Real property taxes,
B. Utility costs,
C. Management fees actually paid if management services are contracted for. If all or a portion of management services are performed by landlord, management fees shall include the reasonable value for such landlord performed services. Management fees greater than five percent (5%) of gross income are presumed to be unreasonable. Such presumption may be rebutted.
D. Other reasonable management expenses, including, but not limited to, necessary and reasonable advertising, accounting and insurance.
E. Normal repair and maintenance expenses, including, but not limited to, painting, normal cleaning, fumigation, landscaping, and repair of all standard services, including electrical, plumbing, carpentry, furnished appliances, drapes, carpets, and furniture.
F. Owner-performed labor, which shall be compensated at the following hourly rates upon documentation of the date, time, and nature of the work performed:
1. At the general prevailing rate of per diem wages for the San Bernardino area, for the specific type of work performed, as determined and published by the Director of the Department of Industrial Relations of the State of California pursuant to Section 1770, et seq. of the Labor Code of the State of California.
2. If no such general prevailing rate has been determined and published, then a cost per hour for general maintenance and a cost per hour for skilled labor as established by resolution of the Mayor and City Council. Notwithstanding the above, a landlord may receive greater or lesser compensation for self-labor if the landlord proves by clear and convincing evidence that the amounts set forth above are substantially unfair in a given case. Owner performed labor in excess of 5% of Gross Income shall not be allowed unless the landlord proves by clear and convincing evidence that such excess labor expenses resulted in proportionately greater services for the benefit of tenants.
G. License and registration fees required by law to the extent same are not otherwise paid by tenants.
H. The yearly amortized portion of capital expenses including financing costs, computed in accordance with any useful life table utilized by the Internal Revenue Service.
I. Reasonable attorney's fees and costs incurred as normal and reasonable costs of doing business, including, but not limited to, good faith attempts to recover rents owing and good faith unlawful detainer actions not in derogation of applicable law, to the extent same are not recovered from tenants.
(Ord. MC-1481, 4-14-18; Ord. MC-865, 3-24-93)