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MOBILEHOME RENT STABILIZATION AGREEMENT AND MOBILEHOME <br /> <br />RENT STABILIZATION ORDINANCE (SR 02:253) <br /> <br />Michael Roush presented the staff report. <br /> <br /> Mayor Pico asked why an ordinance was necessary if an agreement has been reached <br />among the park owners and the tenants and the remaining park owner is regulated by a <br />settlement agreement. He suggested approving the agreement and if the park owners have not <br />signed it by the next meeting, then introduce the ordinance. <br /> <br /> Mr. Roush said there are two reasons. The existing agreement will terminate by the end <br />of the year and it was in the City's best interest to have something in place, whether it is a new <br />agreement or an ordinance, that would be in effect as of January 1, 2002. In order to adopt the <br />ordinance in November, it is necessary to introduce it at this meeting. The second reading would <br />be at the November 6 meeting and it would be in effect by January. Even though there is <br />conceptual agreement with three owners, there are still some collateral issues that will take some <br />time to resolve. He was more comfortable having the ordinance as a stopgap in case the <br />agreement is not signed by January. Secondly, even though there is an agreement with the owner <br />of Pleasanton Mobile Home Park, it is only applicable to rents during 2002. The owner will then <br />have to abide by either an ordinance or a new agreement. If an accord can be reached with all <br />four owners and everyone signed the agreement, the ordinance could be repealed later. He felt it <br />was more prudent to have the ordinance in place. <br /> <br />Ms. Ayala inquired about the survey that established the base rent. <br /> <br /> Mr. Roush said the rent survey included many parks within a thirty mile radius of <br />Pleasanton. Some parks have rent stabilization agreements, some had ordinances and some had <br />no controls. The appraiser's job was to distill that information and arrive at a market rate rent for <br />similar mobile home parks. The appraiser believed that $620 per month was a reasonable space <br />rent. The Pleasanton park owners believe that number is too low and felt it should be $850 or <br />higher. If the ordinance were adopted and the owners did not sign the agreement, then the <br />owners would have the right to have a hearing to decide what amount is correct. If the heating <br />officer agreed with the owners, then the base rent could become $850. <br /> <br /> Ms. Michelotti commented that the increases established in this agreement are only <br />applicable to new owners, not existing residents. <br /> <br /> Mr. Roush further explained that ifa person's current rent were $525 and $25 was the <br />property tax pass through, then for 2003, the $25 is deducted, the cost of living increase (4% for <br />example) is applied to $500 (adding $20), then the $25 property tax is added back to the rent, for <br />a total rent of $545 for 2003. <br /> <br /> Ms. Ayala referred to page 6 of the staffreport and the reduction of rents for the <br />Hacienda residents by $16 per month. She remembered that at one time that figure was $18. <br /> <br />Pleasanton City Council 2 10/02/01 <br />Minutes <br /> <br /> <br />