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28 ordinance must protect against excessive rents, but allow the landlord to collect a reasonable return on investment. He indicated that the reasonable return on the fair market value standard is not constitutionally required. He referred to the letter from the attorney for GSMOL, Bruce Stanton. Mr. Stanton indicated it is not unusual for a government to be threatened with litigation and made it clear that the GSMOL will support the city in the event of litigation by providing technical assistance and data. Mr. Dobro further stated that GSMO1 is a voluntary organization supported by members residing in mobilehome parks. Mr. Dobro indicated mobilehome parks provide low cost housing to needy citizens. The residents are good citizens and do not require the kinds of services other housing developments usually require. He strongly urged Council to support this ordinance to protect the residents of this park, where the owner wants to charge $375 for a piece of dirt with no amenities, no pool, club house, jacuzzis, landscaping, or common area. In other parks, such as where he lives, he has all the amenities mentioned and his rent is $316. Matt Arnerich, 4202 Stanley Boulevard, #26, indicated he is living in a fifth-wheel at the Pleasanton Mobilehome Park. He is being charged $100 more than other tenants in the park and he has to move out every eight months. When he moves back in, the rent is raised. He indicated there is no protection for tenants. Senior citizens on fixed income cannot afford increasing rents. He urged Council to adopt the ordinance. Mike McGuire, (McGuire & Prentise Law Office), representing Mr. Wagner, asked Council not to adopt the ordinance. He believed it was a travesty and clearly unconstitutional. He said it would subject the City to legal exposure. Mr. McGuire felt this ordinance was nothing more than a tax on Jerry Wagner in order to allow him to continue to do business in the City. Since December of 1991, Mr. Wagner has not passed on any rent increases, with the exception of two or three for new people. He has withheld passing on a rent increase because of his attempts to deal with the City. Mr. McGuire expressed appreciation for Mr. Roush's attempts to work with them. He believe Council is sending a message to small businesses that if they don't deal with the city, Council will tax them. He felt this is clearly punitive. Mr. McGuire.believed the administrative fee was excessive. The maximum fee paid by mobilehome park owners in other jurisdictions is $2.62 per space. He believed that the fee structure is only to deter Mr. Wager from going forward. The rent control ordinance does not apply to anyone else because Mr. Wagner is the only one who refuses to sign the 1992 Agreement. In the negotiations with the Mobilehome Committee, Mr. McGuire raised the issue of the city subsidized garbage service which guarantees an 8% to 16% return on its investment. Mr. Wagner is now not even making 1/5/93 28