Napa Olympia Rent Stabilization Mediation Budget Amendment

Adopt a Resolution increasing the Community Development Housing Division Contract Services Budget by $80,000 from $28,600 to $108,600 to fund Mediation Services related to the Napa Olympia Mobilodge Rent stabilization matter. 

Brent Cooper, AICP, Community Development Director

Background

In 2011, the City Council adopted the City's Mobile Home Rent Stabilization Ordinance (RSO). The ordinance was developed through several years of work by a 13-member Ad Hoc Task Force.

The RSO allows annual rent increases equal to 100% of the local CPI, up to a maximum of 6%, with at least 90 days' notice to residents and the City. If a park owner seeks a larger increase or certain other rent adjustments, residents representing at least 51% of affected spaces may petition for mandatory mediation. 

Following receipt of the petition, the City convenes a three-member Mediation Panel consisting of a:

•    qualified mediator, 
•    a mobile home park owner from another park, and 
•    a resident from another park. 

As part of the mediation process, the Mediation Panel may retain an independent expert to review the park owner's rent increase justification and prepare an independent analysis. The cost of the expert review is paid by the park owner and is not funded by the City. The expert's findings are provided to both parties and are used by the Mediation Panel to assist in negotiations. Mediation proceeds as long as both parties are satisfied that progress is being made.  

If mediation does not resolve the dispute, either party may request arbitration. Once an arbitration petition is filed, the proposed rent increase is stayed and cannot be collected unless and until it is approved by the arbitrator. The arbitrator may approve, modify, or deny the requested increase. Arbitration costs are paid by the park owner, although up to 25% of those costs may be passed through to residents if specifically awarded by the arbitrator. The arbitrator's decision is final, subject to judicial review.

Napa Olympia Mobilodge Rent Increase

In May 2026, the City and residents were informed of a planned rent increase by Stockton-based Napa OML MHP 101 LLC (ownership). The rent increase, which would take effect on September 1, 2026, equals approximately 20-40% which exceeds the latest June 2026 CPI of 3.8 percent. A copy of the proposed rent increase is included as Attachment 2.

Per the RSO, a petition signed by more than 51% of resident spaces received by the City.  The petition included the name and contact for a resident representative.  On June 24, 2026, the City accepted the petition and informed the ownership and resident representative that a mediation case has been opened.  

Mediation Panel Selection Process

The City appoints a three-member Mediation Panel consisting of a qualified mediator, a mobile home park owner from another park, and a mobile home resident from another park. The City has assembled a list of three volunteer candidates from mobile park ownership and residents outside the Napa Olympia Mobilodge. 

The mediator is selected by the City after consultation with the Napa Olympia Mobilodge ownership and resident representative.  The City solicited interest from three mediators with excellent credentials and selected a Professional Mediator.  Following allocation of funds through this budget adjustment, the City Manager will award a contract within signing authority. 

Following contract execution, the Mediator, along with the representative of the Golden State Manufactured Home Owners League (GSMOL) and the affected park owner may select the resident and park-owner panel members from the City's list of candidates.

Staff recommends the Council authorize additional appropriations of $80,000 to fund mediation services. 

Approval of the recommended action will increase the General Fund budget by $80,000 to fund mediation services. The additional appropriation will be made to the General Fund's Professional Services line item 100-60-630-42160 and will be funded through the use of Unassigned Fund Balance.