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BACKGROUND There are now just three mobilehome parks in the City of Pleasanton: Vineyard Mobile Villa (3263 Vineyard), with 208 spaces; Hacienda Mobilehome Park (3231 Vineyard), with 149 spaces; and Fairview Trailer Park (785 Rose Avenue), with 22 spaces. Vineyard Villa and Hacienda are operated as age restricted communities where residency is generally limited to households in which at least one of the residents is at least 55 years old. Since 1988 the City has had agreements with the mobilehome park owners to stabilize rents at the parks. The agreements are in lieu of application of the City's Mobilehome Rent Stabilization ordinance. In 2010, the Council approved a new agreement with the owner of Vineyard Villa. In early 2013, the Council approved a new agreement with the owner of the Fairview Trailer Park. The current agreement between the City and the owner of Hacienda Mobilehome Park went into effect in January 2008 and will expire on October 1, 2013. Generally, residents in a mobilehome park own their own mobilehomes and rent space (the land) from the park owner. In addition, residents typically pay for all their own utilities (gas, electricity, water, cable TV etc.). The term "mobilehome" is a bit of a misnomer in that the dwelling units that occupy the spaces within the park (especially at the two larger parks) are far from mobile. In addition, the majority of residents in these parks have lower incomes than the community at large or are on fixed incomes. For these reasons, there continues to be a basis to stabilize rents for this population of Pleasanton residents. If no new agreement were reached, the City's Rent Stabilization ordinance would apply. Although the Ordinance would keep in place several of the protections of the agreement, under court decisions, the park owner could seek to increase rents for all residents on grounds that the base year rents did not provide a fair return on investment. In addition, the park owner could call into question the continuation of the parks as senior parks. Recognizing, therefore, that it was in the best overall interest of the residents to reach some compromise with the park owner, staff developed, in conjunction with Residents' Agreement Committee, and presented to the residents at an all park meeting, the proposed new agreement. Issues in the Negotiations Discussions regarding the new agreement have spanned approximately 15 months. The proposed agreement is based upon the prior agreement, but with several modifications that came about at the request of the Residents' Agreement Committee and or were raised at the all park meetings attended by City staff members over the past year. Major concerns expressed during these discussions included: elimination of the in lieu capital improvement costs, application of the CPI to base rents only and otherwise ensuring rents remain consistent through the term of the agreement, resolution of questions about previously collected in lieu capital improvement costs,