Form revised December 30, 2003

FISCAL NOTE FOR NON-CAPITAL PROJECTS

Department:	Contact Person/Phone:	DOF Analyst/Phone:
Legislative	Rebecca Herzfeld/615-1674	Not Applicable

Legislation Title:

AN ORDINANCE relating to the regulation of floating homes and floating home moorages, amending SMC 7.20.080 concerning the criteria to be considered by the Hearing Examiner when reviewing rent increases and amending SMC 7.20.130 to require that floating home tenants be informed in advance of moorage sales and amending 7.20.150 to change the penalties for noncompliance.

· Summary of the Legislation:

This bill would require that floating home owners be given advance notice that their floating home moorage facility is being offered for sale. In addition, if a transaction is used to establish a new cost basis which justifies a moorage fee increase, notice of the fee increase must include the terms of the transaction and explain how it justifies the use of a new cost basis. If the rent increase is subject to a Hearing Examiner petition, the Hearing Examiner shall also review and consider the terms of any transaction relied upon to establish the cost basis for the moorage. The penalty section for Chapter 7.20 is also updated by this ordinance to include the potential for civil penalties as well as the current criminal ones, and to provide for recovery of reasonable attorney’s fees.

· Background: (Include brief description of the purpose and context of legislation and include record of previous legislation and funding history, if applicable):

In 2001, the State Supreme Court made a decision that invalidated the City’s requirement that floating home owners be given the right of first refusal if their moorage is offered for sale. In light of this decision, the intent of this bill is to maintain the balance of interests between floating home owners and their moorage owning landlords by providing advanced notice of actions that may affect moorage rental rates, and ensuring that moorage fee increases are justified by actual increases in the cost basis of the moorage.

· Please check one of the following:

X This legislation does not have any financial implications. (Stop here and delete the remainder of this document prior to saving and printing.)

____ This legislation has financial implications. (Please complete all relevant sections that follow.)