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because the owner of the Pleasanton Mobilehome Park would not sign the agreement to which <br />the other park owners had agreed. Because the City Council did not want the residents of that <br />property to be treated differently than residents at other parks, the Ordinance tracks, for the most <br />part, what is in the Agreement. <br />Since earlier this year, staff has been in discussions,'negotiations with the park owners and <br />representatives of the residents. The owners would like the new Agreement to permit the space <br />rents to be increased to what they believe is "market rate" when a mobile home is sold (transfer <br />of ownership). The residents would like the property tax pass through to be reduced or <br />eliminated and, as to Vine}'ard Villa and Hacienda, the residents want to keep the parks <br />"senior". In addition, the residents are concerned about deferred maintenance issues and would <br />like the Agreement strengthened to assure that the parks will be maintained properly. <br />DISCUSSION <br />Staff believes that additional time is necessary in order to conclude negotiations. The three park <br />owners have agreed to this short extension with the understanding that if a new resident should <br />move into one of the Parks in this interim period, that a slightly higher rent, similar to what has <br />been charged to new residents over the course of the Agreement, could be charged to such <br />resident. (If the new Agreement would then provide for a lower rent, the difference would be <br />refunded.) Staff sees this as a fair exchange for the extension. <br />If the Agreement expires, the City's Mobilehome Rent Stabilization Ordinance would apply to <br />all the parks, rather than just one. Staff is concerned that if the Ordinance applies, the owners <br />could ask for rent increases not only for new residents but for existing residents. That is, tinder <br />constitutional principles, if an owner believes that the rents established by the ordinance are not <br />reasonable and do not reflect market conditions, the owner is entitled to a hearing on that issue <br />and the hearing officer can order the rents increased. <br />STAFF RECOMMENDATION <br />Staff recommends that the City Manager be authorized to sign the First Amendment to the <br />Mobilehome Rent Stabilization Agreement. <br />Respectfully Submitted, <br />-~~ -~ <br />,- c1~~~'~C~~~'I~~ ~~ <br />Michael II. Roush <br />City Attorney <br />Nelson Fialho <br />City Manager <br />SR 06:291 <br />Page 2 <br />