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Honorable Mayor and City Council Persons City of Santa Ana Hearing: October 4, 2022; Item: 25 September 30, 2022 Page 9 of 11 the calculation of acceptable rates, the City will either (a) deprive landlords of the regulated rates they are entitled under the authority of the California Public Utilities Commission per Cal. Pub. Util. Code § 739.5, or (b) violate the rights of tenants concerning ratenraking of utilities, by approving rent increases that pertain to regulated utility rates. Accordingly sub - billed utilities should be excluded from the definition based on the exclusive jurisdiction of the California Public Utilities Commission to set utility rates for master -meter sub -meter tenants. B. Section 8-3145 — Petition Process, subparagraph (a): Amend to read in relevant part: "Upon the filing of a Petition, the Program Administrator shall for"'ard the Petition to the Board together n,ith all relevant ir7forination submitted by the petitioner, to avoid unreasonable delay; the Board may encourage additional information if it finds the submittal, on its face, lacks adequate evidence, but shall not refuse to consider an application based on completeness, or whether it relates to nrrrltiple properties or classes of properties, or relates to generally available information such as property taxes or the consumer price index. " Our client appreciates that the City has removed the inflexible "Fair Return Petition" submittal requirements and up -front fee deposit that ostensibly violated the principle in cases like Birkenfeld v. Cily of Berkeley, 17 Cal. 3d 129, 171 (1976) as detailed in the pending litigation. However, we suggest that providing an agent of the Board with the ability to refuse "incomplete" application may work unreasonable delay, if a basic application shows generally applicable factors that apply to multiple properties or classes of units. The application should proceed, with the Board corresponding back to a prospective petitioner and encouraging additional information where necessary. C. Section 8-3145 — Introductory Paragraph. Add additional sentence after first sentence. "NoN,ithstanding anything to the contrary in this section, the Board may adjust rent upward, in a Petition on the motion of the Board, or with an incomplete Petition, or with a Petition that relates to multiple properties, so long as it is based on substantial evidence; and further, may approve general rental adjustments for all or any class of rental units based on generally applicable factors such as property taxes. Such an adjustment ivould proceed as a Petition on the motion of the Board, proved by a majority vote of the Board, and proceed through the notice and hearing provisions set forth herein. " D. Section 8-3145 — Petition Process, subparagraph (d)2): Amend to read: "Has failed to bring the Rental Unit, excludinga Mobilehome or Mobilehome Space, into compliance with the implied warranty of habitability. " Under the Mobilehome Residency Law and applicable laws relating to mobilchome parks, the maintenance, repair, and upkeep of a mobilehome is the exclusive responsibility of the mobilehome owner (and in fact, a Park owner cannot modify or access the mobilehome). The mobilehome space, with limited exceptions, is also the responsibility of the mobilehome owner. E. Section 8-3145 — Petition Process, subparagraph (1): Amend to read in relevant part: "The hearing officer may request the City to conduct a current building inspection, or as to mobilehome parks, to contact the California Department of Housing and Community Kingslev — 426 Santa Ana Ordinances