1998 MAY - Laserfiche WebLink

6.60.010 the base year for purposes of determin- ing fair return adjustments (Section 6.60.070 of this Chapter) and as part of that process, looks to the base year gross income; base year gross income is predicted on the base year rents. H. Under this Chapter, a park owner who believes that the base year (i.e., 1992) rents are not reasonable or do not reflect general market conditions can petition for an adjustment to the base year rents. In 1995 the park owner of the Pleasanton Mobilehome Park filed such a petition and a hearing officer determined that effective February 1, 1993, the monthly rent for the spaces in that park was three hundred thirty five dollars ($335.00). The hearing officer did not determine the monthly rents for 1992, but because those rents were between two hundred twenty two dol- lars thirty one cents ($222.31) and three hundred two dollars eleven cents ($302.11) (depending on the space), presumably those rents should have been higher in 1992 (than the $222.31 to $302.11) in order to yield the three hundred thirty five dollars ($335.00) per month rent effective February 1, 1993. Accordingly, should there ever be a fair return adjustment petition for that park, the gross income for the base year (1992) shall be deemed three hundred twenty eight dollars fifty five cents ($328.55). I. The March 17, 1992 agreement was due to expire on December 31, 1996, and the parties to that agreement met during 1996 to discuss the terms and conditions of a revised Mobile- home Rent Stabilization Agreement. J. The parties to the March 17, 1992 agreement reached agreement on a revised Mobilehome Rent Stabilization Agreement (the November 1996 agree- ment). K. The one park owner who had not entered into the March 17, 1992 agree- ment was offered the opportunity to participate in the November 1996 agreement but again refused to do so. L. The City Council declares that it is necessary in the public interest to establish a means by which to resolve the potentially divisive and harmful impasse between park owners and mobilehome owners. After consider- ation of numerous factors, among which are the relatively small number of parks located within the City, the level of organization and communica- tion between mobilehome owners in each park, and the mandates of State law, regulations which best fit the needs of the City have been selected. M. The regulations which are set forth in this Chapter are designed to produce stability in rent increases for mobilehome owners while recognizing the rights of park owners to receive a fair return on their investment. The standards, utilizing the concept of net operating income and a 1992 base year, intend to provide the necessary adjust- ment mechanisms to meet constitutional requirements. N. The Council finds that the adop- tion of Ordinance 1588, as amended by Ordinance 1608 and by Ordinance 1701, all codified in this Chapter, will not have a significant, substantial or adverse effect on the physical environ- 192-39 (Pleasanton 5-98)