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Item 7 - Establishment of Fees for Mobilehome Inspection Svs AGENDA ,ŒPORT SUMMARY fO: Honorable Mayor and Members of the City Council James L. Bowersox, City Mana~ John D. Fitch, Assistant City Manage~)t ØJ SerVl' ces -tÖ Warren H. Shafer, Director of Redevel ment David Narevsky, Redevelopment Manager Ed Wilczak, Building Services Manager May 2, 1995 FROM: INITIATED BY: DATE: SUBJECT: Establishment of Fees for Mobilehome Inspection Services and Amendment of Contract for Mobilehome Inspection Services ABSTRACT This action is to establish fees for mobilehome inspection services and to authorize the amendment of the existing contract with Esgil Corporation to provide for Mobilehome Park Inspection Services, ENVIRONMENTAL REVIEW The proposed actions are categorically exempt from CEQA under Cl ass 21, Enforcement Actions by Regulatory Agencies. FISCAL IMPACT The fiscal impact of this action would be that the City would not generate any income to cover overhead expenses on mobilehome inspections, estimated at $3,500 per year, ADDITIONAL PUBLIC NOTIFICATION AND CORRESPONDENCE Notice was published twice in the Poway News Chieftain, and a copy of th is report was mailed to the Poway Housing Commission, Betty Almand of ReM ax Realty, Loui s Conrad of Amstar Homes, Conrad Menconi of Heritage Homes, and Mary Noble of Coldwell Banker. RECOMMENDATION It is recommended that the City Counc i 1 close the public hearing, adopt the attached resolution (Attachment 3) establishing the fee schedule for inspection services under Ti tl e 25 of the California Code of Regulations as adopted by the City of Poway, and authorize the City Manager to execute the addendum to the existing contract with Esgil Corporation to include Mobilehome Park inspection services. This resolution shall take effect on that date on which Ordinance No. - takes effect, I 'CHON i c:\d_t_\- end-\,n. ee.cav MAY 2 1995 ITEM 7 1 of 13 - AGENDA REPORT CITY OF POW A Y TO: FROM: Honorable Mayor and Members of the City Council James L. Bowersox, City Mana~ John 0, Fitch, Assistant City Manager~~ ~~ Warren H, Shafer, Redevelopment servicY:~Director~ David Narevsky, Redevelopment Manager N Ed Wilczak, Building Services Manager INITIATED BY: DATE: SUBJECT: May 2, 1995 Establishment of Fees for Mobilehome Inspection Services and Amendment of Contract for Mobilehome Inspection Services BACKGROUND The companion report to this item proposes amendment to Chapter 15 of the Poway Municipal Code to adopt technical provisions of Title 25 of the California Code of Regulations concerning the inspection of mobilehomes by Poway Building inspectors. This report is to establish fees for mobilehome inspection services and to amend the existing contract with Esgil Corporation to provide for Mobilehome Park Inspection Services. As noted in the companion report to this item, the State Department of Housing and Community Development (HCD) has ceased to provide inspection services to mobilehome parks owned by the Poway Redevelopment Agency. As discussions were unsuccessful in resolving this issue, the City has provided these services since April 1994 with Esgil Corporation, the City's designated Building Official, serving as technical advisers, In a memo dated December 2, 1994 (see Attachment 1) Richard Esgate, President of Esgil Corporation, details costs associated with providing inspection services on an actual cost recovery basis, Title 25 fees are extremely low and outdated, Other jurisdictions have attempted to provide mobilehome inspection services using the Title 25 fee schedule and have found that they are unable to do so without a si gn i fi cant subs i dy from thei r General Fund revenues, The cost recovery dilemma associated with these low fees may be the impetus for HCD's refusal to continue inspecting the parks in Poway that are owned by the Agency. ACTION: 2 of 13 1995 ITEM MAY 2 7 Agenda Report - Mobilehome Inspection Fees May 2, 1995 Page 2 FINDINGS The companion staff report proposes adoption of the Title 25 standards except for the inspection fees that are contained within Title 25. The City of Poway has the discretion to establish rules and fees for mobilehome inspections as are reasonable, Establishment of fees which allow the City to recover costs for services provided would be reasonable, In the past, the Building Services Division has operated on a full cost recovery basis, A percentage of the fees collected have gone to the City of Poway to cover overhead expenses, and the balance has gone to the Esgil Corporation, the contract provider of the actual services, Esgil Corporation has agreed to provide mobilehome park related plan check and inspection services using the same rates they currently receive under their existing contract with the City, These rates are derived from the existing Fee Resolution adopted by the City Council, The issue of appropriate level of cost recovery was reviewed by the Poway Housing Commission. The Housing Commission recommended that permit applicants pay full cost of plan check and inspection services, In other words, they felt that the user of the service should pay the percentage of the fees that are reimbursed to the contract provider of the services, The Housing Commission also recommended, however, that the City should subsidize the overhead expenses associated with provi d i ng these servi ces by not chargi ng the app 1 i cant the fees that normally are used by the City for overhead expenses (i,e. the City's percentage of the fees). This recommendation is based upon the significant increase between the Title 25 fees and the actual cost recovery fees. The contract between the City of Poway and the Esgil Corporation would require amendment by reference to effectuate this modification, It is anticipated that there would be approximately 10 new mobilehomes set on an existing lot in any year and an additional 25 rehabilitation projects for which permits are typically required, The fiscal impact of this action would be that the City would not generate any income to cover overhead expenses on mobilehome inspections, This amount is estimated at $3500 per year, There would be a minor impact of this additional work on the City's overhead, and the overhead amount woul d not requi re any addi t i ona 1 staff or offi ce space. There i s no i ncrementa 1 cost of this action. As noted, City building inspection services are currently provided by Esgil Corporation, except for mobilehome inspections. Due to the unique relationship between Esgil Corporati on and the City of Poway, and the expectati on of a relatively limited number of permits to be issued, it would be appropriate for Esgil to provide these services, A proposed addendum to the existing Esgil contract is attached (Attachment 2). Approval of this item would authorize the City Manager to execute an amendment of the existing contract in accordance with the proposed addendum. MAY 2 1995 ITEM 7 3 of 13 Agenda Report - Mobilehome Inspection Fees May 2, 1995 Page 3 ENVIRONMENTAL REVIEW The proposed actions are categorically exempt from CEQA under Class 21, Enforcement Acti ons by Regul atory Agenc i es, FISCAL IMPACT The fiscal impact of this action would be that the City would not generate any income to cover overhead expenses on mobilehome inspections, estimated at $3,500 per year, ADDITIONAL PUBLIC NOTIFICATION AND CORRESPONDENCE Notice was published twice in the Poway News Chieftain, and a copy of this report was mailed to the poway Housing Commission, Betty Almand of ReMax Realty, Louis Conrad of Amstar Homes, Conrad Menconi of Heritage Homes, and Mary Nobl e of Coldwell Banker. RECOMMENDATION It i s recommended that the City Council close the pub 1 i c heari ng, adopt the attached resolution (Attachment 3) establishing the fee schedule for inspection services under Title 25 of the California Code of Regulations as adopted by the City of Poway, and authorize the City Manager to execute the addendum to the existing contract with Esgil Corporation to include Mobilehome Park inspection services, This resolution sh~l take effect on that date on which Ordinance No. takes effect, Attachments: 1. 2, 3, 4. Letter from Esgil dated December 2, 1994 Proposed Addendum to City Building Inspection Services Contract Proposed Reso 1 uti on Letter from State HCD dated June 30, 1994 c: \data\agenda\ i nsplee. rpt MAY 2 1995 ITEM 7 4 of 13 ESGIL CORPORATION 9320 CHESAPEAKE DR., SUITE 208 SAN DIEGO, CA 92123 (619) 560-1468 December 2, 1994 Mr. Warren Shafer Director of Redevelopment City of Poway 13325 Civic Center Drive Poway, CA 92064 SUBJECT: Mobilehome Park Inspection Services Dear Mr. Shafer: In response to your request, we have reviewed the concept of Esgil Corporation providing plan review and inspection services for new mobilehome installations and new private construction in the City of Poway Redevelopment Agency owned mobilehome parks, We have asked our attorney to review the liability issues relating to providing services within the agency owned mobile home parks, We have enclosed a letter from our attorney addressing these issues, We are willing to proceed with providing these services provided that the technical provisions relating to mobilehome plan check and inspections are incorporated into the adopted City of Poway Building Code ( Chapter 15 of the Poway Municipal Code ), This incorporation of mobilehome requirements into the Municipal Code should extend the freedom from liability currently enjoyed by building code related enforcement activities to mobilehome related plan check and inspection activities, Assurance of immunity from liability for these types of actions will favorably influence our costs of insurance coverage, It is our understanding that the City Attorney has concluded that since the parks are agency owned they are exempt from Title 25 provisions and are therefore not subject to the constraints of the Title 25 mandated fee MAY 2 1995 ITEM 7 5 of 13 At tachment 1 MR. WARREN SHAFER DECEMBER 2, 1994 PAGE 2 schedules. We have analyzed the costs of providing such services and have concluded that the most reasonable method of determining fees is to use the currently in place Fee Resolution adopted by the City Council. We have included a tabular comparison of Title 25 fees with City of Poway fees for your information, We would advise the City to adopt the technical provisions of Title 25 as part of the City of Poway Building Code in Chapter 15 of the City of Poway Municipal Code, On this basis, we have drafted the enclosed proposed addendum to the contract between the City of Poway and the Esgil Corporation for your consideration, Sincerely, ¿¡::;!If~ . Richard Esgate U President enclosures MAY 2 1995 ITEM 7 6 of 13 PROPOSED ADDENDUM TO CITY BUll..DING INSPECTION SERVICES CONTRACT All services shall be provided in accordance with the provisions of the City of Poway's service contract with Esgil Corporation with the following additional sections. Section I: Section 2: Section 3: Section 4: Section 5: 7 of 13 Redevelopment Agencv Owned Mobile Home Park Regulatorv Services Esgil Corporation shall provide counter. permit plan check and inspection services for mobile home set-up and new private construction within the City ov.rned mobile home parks, Citv Adoption of Mobile Home Park Technical Regulation The City shall amend the City Building Code in Chapter 15 of the City of Poway Municipal Code by adopting the technical construction regulations found in Title 25 of the California Code of Regulations. Freedom ITom Liabilitv It is the intent and understanding of both parties that Esgil Corporation. when performing the services under this addendum, shall have the freedom ITom liability contained in Section 202 of the 1991 Edition of the Unifonn AdmiIùstrative Code. Insurance Esgil Corporation shall obtain and maintain a policy of EITors and OITÙssions insurance to perform the work in this addendum from an insurance company authorized to be in business in the state of California, in an insurable amount no less than one million dollars ($1.000,000) combined single limit with S50.000 deductible. This insurance shall be in force during the life of this agreement and the insurer shall agree to provide the CITY with thirty (30) days Notice of Cancellation or change in the policy. The CITY shall indemnify and hold hanruess ESGIL and its agents and employees crom and against all claims, damages, losses and expenses. including attorneys' fees, arising out of or resulting from work done pursuant to this contract addendum up to the amount of the S50,000 deductible per claim, Liti¡¡:ation and Liti¡zation SuPport On occasion the CITY may initiate, or prepare to initiate, legal action against other parties or other parties may initiate, legal action against the CITY with all such actions. by either the CITY or other parties, relevant to the Building Official or his Attachment 2 MAY 2 ITEM 7 1995 Proposed Addendum to City Building Inspection Services Contract April 14. 1994 Page 2 authorized deputies discharging the duties assigned in this contract addendum. In the above described actions, the CONTRACTOR shaH make CONTRACTOR staff available to assist the CITY in the litigation and to develop litigation support data. Section 6: Compensation to Contractor for Work Under This Contract Addendum The compensation for work under Section I shall be seventy-fi\'e percent (75%) of the fees set forth in the latest City of Po way fee ordinance for building. electrical, plumbing and mechanical permits and thirty percent (30%) of the fee designated for plan check provided the proposed structure has a standard plan approval from the State Department of Housing and Community Development, All other plan checks shall be compensated at seventy-five percent (75%) of the normal Building Division plan check fee, The compensation for work under Section 4. or other e;..1ra work requested in writing by the City, shall be in accordance with the Esgil Corporation preferred labor rates schedule. The above addendum is agreed to on this 2nd day of May, 1995, ESGIL CORPORATION CITY OF POWAY By: Richard Esgate President By: James L, Bowersox City Manager MAY 2 1995 ITEM 7 8 of 13 RESOLUTION NO, 95- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF POWAY, CALIFORNIA ESTABLISHING MOBILEHOME PERMIT AND INSPECTION FEES WHEREAS, the City of Poway is enacting Chapter 15.28 of the Poway Municipal Code to adopt certain proyisions of Title 25, DiYision 1, Chapter 2, of the California Code of Regulations pertaining to the construction, use, maintenance, and occupancy of mobilehomes; and WHEREAS, mobi 1 ehome permit and i nspect i on fees for those mobi 1 ehomes regulated by Chapter 15.28 of the Poway Municipal Code shall be established from time to time by resolution; and WHEREAS, establishment of such fees is categorically exempt from the California Environmental Quality Act, Class 21, NOW, THEREFORE, the City Council of the City of Poway does hereby resolve as follows: Section 1, The fee schedule attached hereto and marked Schedule A shall be the schedule of fees chargeable for the permits and services stated. Section 2. The fees set forth in Schedule A shall remain in full force and effect until modified by resolution, Section 3. This resolution shall take effect on that date on which Ordi nance No. takes effect, PASSED, ADOPTED AND APPROVED, by the City Council of the City of Poway at a regular meeting thereof this 2nd day of May, 1995, Don Higginson, Mayor MarJorie K, Wahlsten, City Clerk STATE OF CALIFORNIA) ) ss, COUNTY OF SAN DIEGO) I, Marjorie K, Wahlsten, City Clerk of the City of Poway, do hereby certify that the foregoing Resolution 95- was duly adopted by the City Council at a meeting of said Council on the 2nd<Iay of May, 1995, and that it was so adopted by the fo 11 owi ng vote: AYES: NOES: ABSTAIN: ABSENT: MarJorie K, Wahlsten, City Clerk 9 of 13 Attachment 3 MAY 2 1995 ITEM 7 SCHEDULE A MOBILEHOME PERMIT AND INSPECTION FEES Permit Issuance $ 22,50 $280.74 Building Permit Plan Check Fee $ 72,99 $ 43.50 Pl umbi ng Permi t El ectri ca 1 Permit $ 49.50 All other permit fees based upon existing City of Poway Building Fees, Add Strong Motion Implementation Program (SMIP) to all of the above totals. MAY 2 1995 ITEM 7 10 of 13 STATE OF CAUFORNIA . BUSINESS, TRAI )RTATlON AND HOUSING AGENCY DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT LEGAL AFFAIRS DIVISION - 1800 THIRD STREET, 50;.. +10 p,o, BOX 952052 SACRAMENI'O, CA 94252-2052 (916) 323-7288 FAX (916) 323-2315 June 30, 1994 Mr. Ed Wilczak Building Division City of poway Post Office Box 789 Poway, CA 92074-0789 RE: Redevelopment AgencY-I Dear Mr. Wilczak: This letter confirms our conversation this week, and lays out the "continuum" of rights and obligations of the City vis-a-vis enforcement of standards in mobilehome parks owned by the Redevelopment Agency. As has already been noted, the Agency-owned mobilehome parks are exempt from the Mobilehome Parks Act ("MFA") by virtue of the provisions of Section 18303 of the Health and Safety Code (all code references hereafter are to the Health and Safety Code, unless otherwise noted). The following are some of the primary issues related to enforcement in these Agency-owned mobilehome parks: 1. What construction and operating standards apply within the mobilehome parks? Two issues arise as a result of the fact that Agency-ownership of the mobilehome parks results in exemption from the MFA. First, HCD cannot enforce the MFA in these parks. Secondly, the substantive (construction and operating) and procedural provisions of the MFA do not apply in these parks. Your City Attorney can best advise you as to the physical and operating standards to be applied, and whether they require codification in your local ordinances or redevelopment agency procedures. However, we would recommend that you adopt the State I s construction and operating requirements, so that (a) you benefit from the procedures developed after experience throughout the state, and (b) there is consistency between those parks in the City owned by the Agency, and other parks owned by private entities. As to procedural provisions, again, your city Attorney can best advise you on how to develop and implement procedures which result 11 of 13 Attachment 4 MAY 2 1995 ITEM 7 Mr. Ed Wilczak June 30, 1994 Page 2 in the City enforcing the appropriate substantive provisions in a fair and adequate manner. 2. What standards and procedures "mobilehome set-up inspections"? apply with regard to since the authority for "mobilehome set-up inspections" ("MHI's") exists within the MFA, this administrative function must be assumed by the City in Agency-owned mobilehome parks. since there are no substantive standards mandated by law, the City can adopt its own standards. Again, however, we would recommend adoption of the standards used by the State. In the alternative, at a minimum, the City should enforce any instructions provided by the manufacturers¡ otherwise, the structural integrity of the manufactured home may be placed at risk.! 3. What physical standards apply with regard to the standards and maintenance of mobilehomes? The standards governing mobilehomes (other than set-up and earthquake resistent bracing systems, and all accessory structures) are governed by the Mobilehomes-Manufactured Housing Act of 1980 (Sections 18000, et seq.) ("MMHA"). Thus, depending upon the age of a particular mobilehome, travel trailer, recreational vehicle or other accommodation, the specifications set forth in that Part apply. In this regard, there are two critical issues. the MMHA does not provide any standard for "substandard mobilehome", to the extent that the substandard condition is a result of passive neglect rather than affirmative modifications. The only reference to "substandard mobilehome" exists in the MFA which, as noted above, does not apply in Agency-owned parks. On the other hand, any modification is an "alteration", and is covered under the MMHA. Thus, depending upon the nature of a mobi1ehome maintenance defect, either the City or HCD (as the enforcement agency for mobilehomes) may be obligated to consider taking appropriate action. 4. When city inspectors are in a mobilehome park for an MEI or in response to a complaint, what action should be taken in the event that a violation is observed with respect to each of the following: (a) a substandard mobilehome, as a result of general deterioration, and (b) an illegal mobilehome alteration? 1 Note that the provisions governing seismic safety and earthquake resistant bracing systems authorized in section 18613.5 also are in the MFA¡ therefore, the city also will have an obligation to address these issues. However, again, we recommend that the City adopt the State's substantive provisions governing earthquake resistant bracing systems. MAY 2 1995 ITEM 7 12 of 13 Mr. Ed Wilczak June 30, 1994 Page 3 If an inspector notes a mobilehome defect which is a result of passive neglect (e.g., the vent covering for an external water heater has fallen-off), that is a violation of whatever mobilehome park standards are being enforced, and should be cited and enforced by the city. No permit from the State is necessary_if the repair returns the mobilehome to its original condition, using materials or procedures approved under the MMHA. If the defect involves a modification (e.g., a different type of venting than that permitted), the alleged violation should be reported to HCD, and HCD will monitor any correction. Similarly, if an owner proposes an alteration to address a substandard condition, approval from HCD will be necessary prior to initiating the repair. Please let me know if we can provide any further assistance. c?,""lY' Ronald S. Javor Senior Staff Counsel MAY 2 1995 ITEM 7 13 of 13 Jl~ ?J¡~~ ¡7ýS TO: THE HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: LOUIS N. CONRAD AMST AR HOMES / RECEIVED \ MAY 1 1995 . " '.. CITY OF POWAY - CITY CLERK'S OFFICI IN JULY OF 1994 I SUGGESTED TO MR. NARVESKY THE NAME OF MR. STEWART JONES TO DO THE INSPECTION IN YOUR MOBILE HOME PARKS. HE STATED TIiAT THE CITY WAS IN A CONTRACT WITH ESGIL CORPORATION. I THEN ASKED HIM IF ESGIL CORPORATION HAD A LICENSED C-47 CONTRACTOR DOING THE INSPECTIONS. HE SAID HE DIDN'T KNOW BUT HE WAS A GENERAL CONTRACTOR. ON MAY 1st 1995 I ASKED THIS SAME QUESTION OF MY NARVESKY AND GOT THE SAME ANSWER MR. STEWART JONES IS A LICENSED (BI-C47) LICENSE #250742 CONTRACTOR WHO IN IS HIS YEARS BEFORE RETIRING FROM THE STATE DID ALMOST ALL OF THE SET INSPECTIONS IN POINSETI1A AND POW A Y ROYAL ESTATES. FOR THE ST ATE OF CALIFORNIA. MR. JONES IS NOW IN PRIVATE MOBILE HOME INSPECTION BUSINESS. MR. JONES IS LICENSED BONDED AND CITIFIED BY THE STATE OF CALIFORNIA. MR. JONES Wll.L DO ALL THE INSPECTIONS AT TITLE 25 PRICES.. THIS WILL BE ABOUT A $500..00 SAVINGS TO THE HOMEOWNER Z;;dt t;::;".", PRES. AMST AR HOMES INe.. MAY 2 1995 ITEM 7 ' O