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prospective buyers aware of the proposals for the Park. He said there could be a rent increase that will affect new residents. In addition they are working through issues surrounding conversion from a senior to a family park. He felt it was important to issue a notice to residents and prospective buyers to advise them of these possibilities. He planned on sending this letter out simply as a notice. Mr. Campbell asked if there was ever a time when he did not raise the rents just because he could. He asked if he tried to maintain good neighborly relations. Mr. Hoon would like an opportunity to discuss with Mr. Campbell about the status of housing costs and financing costs. The way the question was phrased implies that our objective is simply to raise the rents. The site cost of our park is $502 per month, the lowest in the community. What is escalating the housing costs in this community is not the site cost, but the resale costs of 30 year old homes that have a book value of $10,000 that are being resold for $90,000 to $145,000. When someone comes to our property, they are obligated with a major mortgage and the site cost. The mortgage is a fixed cost yet the only target for criticism or adjustment is the site cost. The same issues apply to the PG&E bills, which are critical components of the housing costs. He believed the housing costs at the mobile home park are very low and below market. Ms. Michelotti said this Council is trying to keep something that is affordable in the City of Pleasanton. She felt that when Mr. Hoon entered into the contract to purchase this property, he was aware of the regulations on this property. Mayor Pico reiterated his appreciation for the Park owners meeting with the residents to address maintenance issues and trying to address the concerns. He looked forward to visiting the Park again to see the changes. He believed the City of Pleasanton through its Housing Commission wants to maintain affordable housing for seniors and the City would be willing to work with the owners to make this permanent senior housing and to see how we can make this work to provide an economic return for the owners, to meet the needs of the seniors, as well as to meet the requirements of ABAG for affordable housing. Mr. Hoon said he was willing to attend any future meetings. There were no ftather speakers on this item. Ms. Ayala indicated she and Mr. Pico had met with the owners of the Park. She has been careful not to get in the way of the negotiations regarding rent control. She felt it was a good idea to have a subcommittee of the Council in place in case negotiations go contrary to Council's desires. She felt it should be her and Mayor Pico. Mayor Pico shared Ms. Ayala's comments about not being involved in negotiations, but he would be willing to be on a subcommittee. Pleasanton City Council 11 03/20/01 Minutes