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8. The term of the new agreement shall be through December 31, 2018. Two <br /> additional one year extensions are authorized, provided park residents indicate <br /> their satisfaction with how the park is being administered under the new <br /> agreement. (Article XII.) <br /> 9. Those residents who paid in lieu capital improvement costs in the past and do <br /> not wish to pay capital improvement assessments in the future may enter into a <br /> separate agreement with the park owner whereby they may continue to pay the <br /> in lieu capital improvements costs instead of being subject to future capital <br /> improvement assessments. The City will not be involved in the drafting or <br /> negotiation of such agreements. (Article VII.) <br /> Following the all park meeting on September 16, 2013, all households were provided a <br /> ballot to indicate approval or disapproval of the proposed agreement. 67 of the 149 <br /> households voted. 60 ballots were cast in favor of the agreement, 7 were opposed. <br /> One issue of concern at the all park meeting was that the proposed agreement does not <br /> set forth maintenance standards like were incorporated into the last agreement. Staff <br /> has discussed this further with the park owner and the parties have agreed that <br /> maintenance standards shall instead be set forth in a separate side letter, a copy of <br /> which is attached. The side letter can be referred to by all parties, and a hearing officer <br /> should the need arise, in determining maintenance responsibilities. <br /> The new agreement will take effect October 1, 2013. (As of the time of this writing, the <br /> park owner has already sent out rent increase notices advising residents of the new rent <br /> as of October 1, 2013.) <br /> Given the level of resident support for this Agreement, and the park owner's agreement <br /> to a side letter regarding maintenance responsibilities, staff recommends that Council <br /> approve the agreement. <br /> CONCLUSION <br /> The proposed agreement has been tailored to meet the specific needs of the residents <br /> of the Hacienda Mobilehome Park. The agreement represents a compromise, but <br /> contains things for the residents and things for the park owner, as well. For these <br /> reasons, staff recommends that the new Agreement Providing for Stabilizaion of <br /> Mobilehome Space Rents be approved. <br /> Submitted by: Approve. .y: <br /> Jonathan Lowell Nelso ialho <br /> City Attorney City Manager <br /> Page 4 of 5 <br />