15.04.100 The rent dispute resolution process.

(A) The resident may contact the administrator for an explanation of the provisions of this chapter.

(B) Settlement Offers. At any time after residents file a petition for mandatory mediation in response to a proposed rent increase, the park owner and the residents may tender settlement offers to each other to stipulate to a compromised amount for the proposed rent increase. The party tendering the settlement offer shall also file a copy of the written settlement offer with the administrator in a separately sealed envelope and with a statement written on the outside of the envelope that it is a written settlement offer pursuant to this subsection. The sealed copy of the written settlement offer that is filed with the city is not to be opened by the administrator until it is either accepted by the other party or if the dispute subsequently enters into mediation and/or arbitration and the mediation panel or arbitrator deems it necessary to open it. Upon receiving such offer to compromise, the receiving party has seven days to accept the offer by filing a written acceptance with the administrator.

(1) A petition signed by fifty-one percent of the mobilehome spaces affected by a rent increase may request mandatory discussion of disputes under this chapter by filing a written request for dispute resolution within twenty-one days of learning the facts that give rise to the dispute. The request must be filed with the administrator, and provide enough factual information to outline the basic issue or issues being raised.

In the petition, the mobilehome residents shall designate an individual to serve as the mobilehome resident representative for the purposes of receipt of all notices, correspondence decisions and findings of fact. Service of notice upon the designated mobilehome resident representative will constitute adequate and sufficient notice of the mobilehome owners who signed the petition.

Failure to designate a mobilehome resident representative will render the petition incomplete and the petition will not be accepted for filing.

For the purpose of counting petition signatures only, each mobilehome space for which a rent increase was noticed shall count as one unit, regardless of the number of persons living in the mobilehome unit on said space.

For the purpose of counting petition signatures only, any person over the age of eighteen living in a given mobilehome may sign a petition on behalf of that mobilehome unit.

(2) Within seven days of receiving a written request for dispute resolution, the administrator will notify both the resident representative and park owner that a case has been opened involving all of the spaces affected by the rent increase and will provide a copy of the request to the responding party and a copy of the request shall be received and filed with the city clerk on behalf of the city council.

(3) The administrator will not open dispute resolution, or will order dispute resolution closed, when it is clear from the written request that there is no substantial factual basis for the dispute, or when the dispute involves the actions or behavior of persons, or conditions, that are not within the control or responsibility of the parties; or when the dispute is frivolous, malicious or vexatious; or when further proceedings are not, in the sole judgment of the administrator, likely to be productive. Both parties will be notified of the administrator's action and shall have access to the case summary forms used by the administrator, which will not contain any confidential communications from the parties.

(4) The administrator will promptly assign the request to a mediation panel who will contact all relevant parties to conciliate and mediate the dispute. The administrator shall have the authority to combine different disputes or different parties in the interest of efficiently addressing the disputes, provided that any party may, for reasons of confidentiality or otherwise, opt out of a combined mediation involving more than one resident or park owner by notifying the administrator. All communications between the administrator and the parties as well as between the mediation panel and the parties shall be confidential and subject to the confidentiality guarantees set forth in California Evidence Code Sections 703.5 and 1115 through 1128, as they may be amended or superseded. The mediation panel assigned to the case will promptly investigate and if necessary disclose any conflict of interest or potential conflict of interest to the parties as soon as the conflict or potential conflict becomes known to a member of the mediation panel. At the time of disclosure, the parties will have the option of waiving any such conflict as long as the waiver is in writing.

(5) The mediation panel shall be selected consistent with Section 15.04.020 (Mediation panel) and the city shall bear the cost of the mediation panel. The city may utilize a volunteer mediator, if such person is a qualified mediator under this subsection. The qualified mediator on the mediation panel shall be experienced in the mediation process both in facilitating communications in conciliation between parties and in mediating disputes. The selected qualified mediator is prohibited from also serving as an arbitrator under subsection D of this section.

(6) Unless all parties agree in writing to waive the time limit, the initial mediation session will be conducted within twenty-eight days of the date the written request for dispute resolution is filed. The park owner's business location shall be considered so that the mediation will be scheduled at a reasonably convenient time taking into account the distance that the park owner must travel to attend the mediation.

If a mediation session is held, the mediation panel shall provide the parties with an opening statement explaining the nature of the process and the ground rules. Thereafter the mediation panel will determine the manner and course of the session, including whether to meet with the parties in caucus, provided that the general guiding principle will always be to provide the parties with a full opportunity to air the concerns giving rise to the dispute.

(a) Independent Expert Analysis.

(i) The mediation panel, through the administrator, shall arrange for the employment of an independent expert to perform an independent analysis of the application and prepare an independent determination regarding the subject matter of the application. Any expert hired pursuant to this section shall be instructed to give an unbiased analysis.

(ii) Cost of Expert. The mediation panel, through the administrator, shall also determine the anticipated cost of employing such expert. The determined cost of the independent expert shall be paid by the park owner to the administrator prior to commencement of the expert's analysis. Any unused portion of the payment collected from the park owner by the administrator shall be refunded to the park owner.

(iii) At the conclusion of the independent expert analysis, the mediation panel shall communicate the results of the analysis to the park owner and the residents. The decision rendered through the independent expert analysis shall be utilized as a tool by the mediation panel to assist the parties in negotiations.

(7) The parties involved in the dispute, including any resident representative, shall be obligated to personally appear at a mediation session scheduled by a mediation panel. No attorneys are permitted to be utilized in the mediation process. However, a party who is a licensed attorney may represent him or herself. All parties must participate in the mediation session until completion of the mediation panel's opening statement. All parties, including any representative acting on behalf of any resident(s), appearing must have the legal authority to resolve disputes arising under this chapter. Participation in mediation shall be voluntary in all respects after the opening statement. The mediation panel may, with the consent of all parties, schedule additional sessions as needed.

(8) Pursuant to Section 15.04.200, the administrator shall have the power to impose monetary sanctions on any party not appearing in person at a mediation session.

(9) No party shall be obligated to reach any specific agreement, or to reach any agreement at all, as a result of participating in conciliation or mediation communications. If an agreement is reached, it will be stated in writing by the mediation panel or by the parties. Any such agreement shall be confidential and will not be enforceable or usable for any purpose outside the dispute resolution process unless all signatories agree that the document can be disclosed or used in other proceedings.

(10) In the event the parties do not come to an agreement through mediation, either party may file a petition for arbitration consistent with the procedures set forth in subsection D. In the event the parties do come to an agreement through mediation, a copy of that agreement shall be received and filed with the city clerk on behalf of the city council.

(D) Arbitration.

(1) If mediation between the park owner and the affected residents pursuant to the mandatory mediation process outlined above in subsection C does not resolve the dispute, the park owner, the affected residents, or their representative(s), may file with the administrator a petition requesting arbitration. Any petition requesting arbitration must comply with the provisions of this section, except that a petition filed by a park owner need not be signed by the affected residents. Pursuant to subsection (E)(3), no petition shall be accepted unless it is accompanied by the requisite number of signatures and is received in the office of the administrator within thirty days of the last session of mandatory mediation. The administrator shall provide a copy of the completed petition to the park owner and the arbitrator.

(2) As soon as possible after a petition has been filed with the administrator with respect to mobilehome spaces which are within a single park, the administrator shall, to the extent possible, and consistent with the time limitations provided herein, consolidate requests for arbitration involving similarly situated affected residents who have already participated in mandatory mediation.

(3) Upon the filing of petition with the administrator, the rent increase at issue is not effective and may not be collected until and to the extent it is awarded by an arbitrator or until the request for arbitration is abandoned by the affected residents or their representative(s). "Abandoned" as used in this section means a failure to actively pursue the necessary steps to prepare the residents' case for the arbitration.

(E) Contents of Petition for Arbitration.

(1) The administrator shall not accept a petition for arbitration of a rent increase from any resident(s) unless it has been signed by at least fifty-one percent of all affected residents.

(a) For the purpose of counting petition signatures only, each mobilehome space for which a rent increase was noticed shall count as one unit, regardless of the number of persons living in the mobilehome unit on said space.

(b) For the purpose of counting petition signatures only, any person over the age of eighteen living in a given mobilehome may sign a petition on behalf of that mobilehome unit.

(2) The petition for arbitration shall set forth the total number of affected rented spaces in the mobilehome park, and shall identify the name of the resident(s) who occupies each such space. A petition filed by any resident(s) shall state the date upon which the notice of the rent increase was received by the resident(s). A petition filed by a park owner shall state the date upon which the notice of the rent increase was served on the resident(s). Neither a park owner nor any resident(s) may participate in arbitration unless the park owner or resident(s) participated in all portions of mandatory mediation (personally or through a designated representative).

(3) In the case of residents filing a petition for arbitration, after obtaining the signature(s) of affected resident(s), the resident representative must personally deliver the petition or mail it by certified mail to the administrator at the following address: City Manager, City of American Canyon, 4381 Broadway St., Suite 201, American Canyon, CA 94503 (or successor address or agency). No resident petition shall be accepted unless it is accompanied by the requisite number of signatures and is received in the office of the administrator within thirty days of the last session of mandatory mediation. The administrator shall provide a copy of the completed petition to the park owner and the arbitrator.

(4) In the case of a park owner filing a petition, the park owner must personally deliver the petition or mail it by certified mail to the administrator at the following address: City Manager, City of American Canyon, 4381 Broadway St., Suite 201, American Canyon, CA 94503 (or successor address or agency). No petition shall be accepted unless it is received in the office of the administrator within thirty days of the last session of mandatory mediation. The administrator shall provide a copy of the completed petition to the affected park residents or their representative(s) and the arbitrator.

(F) Information Questionnaire. After the administrator has accepted a petition for arbitration, the administrator shall remit to the park owner and petitioning residents or the resident representative an information questionnaire in such form as the administrator may prescribe. The completed information questionnaire must be returned to the administrator at least five business days prior to the date scheduled for hearing of the petition by the arbitrator. The administrator shall provide copies of the completed information questionnaire to the arbitrator, the mobilehome park owner, and the affected residents or the resident representative.

(G) Assignment of Arbitrator and Hearing Date/Service of Documents. The administrator shall assign an arbitrator within fifteen business days after receipt of the arbitration petition.

Additional documents to be presented at the hearing by either the park owner or the affected resident(s), other than those previously submitted pursuant to Section 15.04.090(B) and (C) or subsection C of this section, shall be served on the other party, the administrator, and the arbitrator at least ten working days before the hearing by mail or in-person delivery. All financial documents submitted must be verified in writing by an auditor or certified public accountant or certified in writing as true and correct under penalty of perjury by the park owner.

(H) Arbitration Fees.

(1) Once the arbitrator has been selected, the administrator will contact the arbitrator to determine the estimated hearing fee, which shall include an estimate of all fees generated by the arbitrator relative to reviewing submittals by the parties, conducting the hearing, and engaging in any activities related to the determination of whether the proposed special rent increase shall be permitted. The administrator shall notify the park owner in writing of the estimated arbitrator fees no less than fifty days prior to the first date set for the hearing.

(2) No later than thirty-five days prior to the first date set for the hearing, the park owner shall submit to the administrator payment in full of the estimated arbitrator fees. If payment is not timely received, the hearing shall be postponed, and the hearing shall not be re-scheduled until such time as payment is received.

(3) Upon completion of the hearing and the issuance of a decision, the arbitrator shall submit to the administrator a final invoice for all services. To the extent that the invoice amount exceeds the fees paid by the park owner pursuant to this section, the park owner shall issue payment of the difference to the administrator. In the event that the total fee is less than the original estimate paid by the park owner, such amount will be refunded to the park owner.

(4) Except for the refunds provided for in subsection (H)(3) of this section, a park owner may only recover from the affected residents arbitration costs only when an arbitrator's statement of decision, required by subsection (I)(4), specifically awards such costs to the park owner. An arbitrator's statement of decision may award a park owner no more than twenty-five percent of arbitration costs.

(5) Commencing no sooner than thirty-five days after the final arbitration award, and subject to the provisions of subsection (H)(4) of this section, the park owner may pass through, as hereinafter described, the arbitration costs awarded to all of the mobilehome residents occupying spaces in the affected park subject to mobilehome rent stabilization under this chapter. The awarded costs shall be prorated by the number of spaces subject to mobilehome rent stabilization under this chapter, and shall further be amortized, interest free, over a period of twelve months. To the extent that a mobilehome is sold prior to payment by the resident of the arbitrator fees described in this section, the purchaser of the mobilehome shall be responsible for any remaining amount.

This chapter makes no provision for the recovery of attorney fees and costs by park owners or mobilehome owners with respect to special rent increase hearings or any hearings described in this section, regardless of which party prevails.

(I) Arbitration Hearing.

(1) The park owner and any affected resident(s) may appear at the hearing and offer oral and documentary evidence. Both the park owner and resident(s) may designate a representative or representatives to appear for them at the hearing. The arbitrator may grant or order one or more continuances to each party for a period to be determined by the arbitrator upon a showing of good cause. A further continuance may be granted if stipulated to by all the parties. The burden of providing that the amount of rent increase is reasonable shall be on the park owner by a preponderance of the evidence. The hearing need not be conducted according to technical rules relating to evidence and witnesses. The rules of evidence and manner of producing evidence shall be those rules set forth in California Government Code Section 11513 for the conduct of hearings under the Administrative Procedure Act. These rules may be relaxed at the discretion of the arbitrator in the interests of justice.

(2) Any party may have electronic recording equipment or a court reporter present to record and prepare a transcript of the hearing before the arbitrator. Such equipment or reporter shall be provided at that party's own expense.

(3) Any jurisdictional or procedural dispute regarding the process set forth herein may be decided by the arbitrator.

(4) The arbitrator shall, within fourteen days of the conclusion of the hearing, submit by mail a written statement of decision and the reasons for the decision to the administrator. The administrator shall forthwith mail copies of the decision to the park owner and affected resident(s).

(5) The decision of the arbitrator, rendered in accordance with this section, shall be final and binding upon the park owner and all affected residents. The decision of the arbitrator will be subject to the provisions of California Code of Civil Procedure Section 1094.5.

(6) It is the intent of the city council to have a final decision rendered within one hundred fifty days of the initial notice of the rent increase. The administrator or the arbitrator may, however, modify the time periods set forth in this section at his or her discretion to promote the purposes of this chapter.