HomeMy WebLinkAbout1390 - ORDINANCES - 7/23/1991 ORDINANCE NO. 1390
AN ORDINANCE OF THE CITY OF PALM SPRINGS,
CALIFORNIA, AMENDING SECTION 4. 08. 060 BY REPEALING
SUBSECTION 4.08 .060 (d) (3) AND ADDING A NEW SUB-
SECTION 4.08. O60 (d) (3) , TO CLARIFY COSTS TO BE
EXPENSED OR CAPITALIZED IN CONNECTION WITH HARDSHIP
INCREASES.
THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, DOES
ORDAIN, AS FOLLOWS:
SECTION 1. Subsection 4 . 03. 060 (d) (3) of the Palm Springs
Municipal Code is hereby repealed and a new subsection
4.08. 060 (d) (3) is hereby added to Chapter 4 . 08 of the Palm
Springs Municipal Code, to read as follows:
(3) Operating expenses shall include the following:
(i) Real property taxes,
(ii) Utility costs, not paid by the tenants,
(iii) A management fee which includes the costs of both
on-site and off-site management (contracted or owner per-
formed) and is five: percent or less of gross .income is
presumed to be :reasonable. A management fee in excess of
five percent of. gross :income is presumed to be 'unreason-
able. Such presumption may be rebutted by clear and con-
vincing evidence.
(iv) Other reasonable management expenses including but
not limited to necessary and reasonable advertising, ac-
counting fees and insurance.
(v) Owner-performed labor, at hourly rates established
by commission regulations.
(vi) License and registration fees required by law to
the extent: same are not otherwise paid by tenants.
(vii) Any other operating expense which is ordinary,
necessary, and reasonable, and which recurs on an annual
basis, irrespective of the amount, should be expensed in
the year in which it occurs. Any operating expense in
excess of $500 which does not recur on an annual basis
must be capitalized,, provided, however, that:
(1) Expenditures to upgrade facilities or increase
amenities shall be allowable expenses in cases involving
mobile home parks only if the park owner has consulted
with the park residents regarding the nature and purpose
of the improvements and the estimated cost of the im-
provements, prior to initiating construction of the
improvements and has obtained the prior written consent
to include the cost of the improvement as an operating
expense of: at :Least one adult resident from a majority of
the mobile home rental. spaces. The commission shall not
consider evidence of such consent which is not presented
in writing at the time of filing the application which
seeks to include such capital improvement expenditures as
operating expenses. 'b
3D2-.
Ordinance #4 . 08 . 060 (d) (3) 1390
Page 2
Allowable annual expense calculations under this sub-
section shall be computed in accordance with the amortiz-
ation schedule set forth in Section 4. 08. 190 or if not
itemized therein, in accordance with the actual useful
life of the maintenance or capital improvement.
(viii) Reasonable attorneys 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 that the same
are not recovered from tenants.
(ix) Where the landlord holds the property pursuant to
a ground lease, master lease or similar arrangement, the
portion of the rental paid pursuant to such ground lease
which exceeds the rental paid pursuant to such ground
lease during the accounting year which includes Septem-
ber 1, 1979, where:
(1) The ground lease, master lease or similar
agreement was in full force and effect on April 8, 1980;
and
(2) No previous agreement has been made in antici-
pation of the higher ground lease payments.
SECTION 2 . EFFECTIVE DATE. This Ordinance shall be in full
force and effect thirty (30) days after passage.
SECTION 3 . PUBLICATION. The City Clerk is hereby ordered and
directed to certify to the passage of this Ordinance, and to
cause the same or a summary thereof or a display advertise-
ment, duly prepared according to law, to be published in
accordance with law.
ADOPTED this 23rd day of July 1991.
AYES: Councilmembers Broich, Hodges, Murawski , Neel and Mayor Bono
NOES: None
ABSENT: None
ATTEST: CITY OF PALM SPRINGS ,CALIFORNIA
BY
City Clerk---- Mayor
REVIEWED & APPROVED:�� �bc�ti
I HEREBY CERTIFY that the foregoing Ordinance 1390 was duly
adopted by the City Council of the City of Palm Springs,
California, in a meeting held on the 23rd day of July, 1991,
and that same was duly published in the DESERT SUN, a newspaper
of general circulation on July 27, 1991.
�L
JUDITH SUNICH
City Clerk