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Mr. Lowell noted that capital improvement costs collected under the prior agreement were in dispute, though parties to the dispute have reach a resolution in which the park owner will contribute $65,000 for the rehabilitation of the clubhouse kitchen. The total contribution of $65,000 includes all funds collected as in lieu capital improvement costs during 2013 and will be held in escrow and only to be released upon demonstration that the monies were spent on the stipulated rehabilitation. Any excess monies will be returned to residents and the park owner may not assess residents for any costs that exceed that contribution. Other capital improvement costs may only be passed on to residents in accordance with the relevant provisions of the city's Rent Stabilization Ordinance, attached as an exhibit to the agreement. Those residents who paid in lieu capital improvements in the past and prefer this option may enter into a separate agreement with the park whereby they may continue to pay in lieu fees instead of being subject to capital improvement assessments. The city will not be involved in drafting or negotiation of such an agreement. Mr. Lowell stated that following an all park meeting held on September 16th, all households were provided a ballot to indicate approval or disapproval of the proposed agreement. 67 of the 149 households voted, with 60 indicating their favor of the agreement. He noted that concerns were raised at the meeting that the proposed agreement does not set forth maintenance standards like those incorporated into the last agreement. 22 of the 60 votes in favor of the agreement included handwritten notes requesting the inclusion of maintenance standards. Staff met with the park owner for further discussion and have reached agreement that maintenance standards shall be set forth in a separate side letter which can be referred to by all parties, including a hearing officer should the need arise. If approved, the new agreement would take effect today. Staff understands that the park owner has already issued a rent increase notice advising residents of their rent effective October 1. Following approval of the agreement, the park owner will immediately send out rent increase notices indicating what rents, which reflect a 2% CPI increase, will be effective January 1. Given the level of resident support and the park owner's agreement to the side letter regarding maintenance responsibilities, staff recommends approval of the proposed agreement. Vice-Mayor Cook-Kallio asked whether the agreement speaks to the proper procedure should property taxes decrease. Mr. Lowell said "no" but noted that this pass through relates to a tax that went into effect in 2000 or 2001. While various changes in valuation occurred in subsequent years and while some were in fact reductions, none were reduced below the 2001 figures. Mayor Thorne opened the item for public comment. Ed Eckert stated he has been a park resident for 2 '/ years. Under the proposed agreement, he would continue to pay in lieu capital improvement fees as part of his rent and he therefore disagreed with the agreement on principle. He noted that many residents are living on a very limited income and that some will be forced to sell their home and leave the park because they cannot manage this type of increase. Anthony Massa said the proposed agreement has one major flaw, which is that it eliminates the in lieu capital improvement cost only for those residents who were there prior to 2008. He noted several references to this cost being incorporated in the rent of those who moved to the park after this date and said it is really a matter of semantics that leaves them still footing this bill. He also noted that 75% of those who voted in favor of the agreement are set to benefit from a $17 or $34 monthly reduction; whereas many of those who moved in after 2007 decided not to vote after learning they would receive no benefit. He presented the City Clerk with a petition requesting an impartial judgment of the matter. City Council Minutes Page 4 of 7 October 1, 2013