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Moreover, the Agreement has a more detailed and more expedited dispute resolution process. One of the complaints that the residents expressed to the Council was that the existing Agreement had no teeth to compel the owner to meet his obligations and therefore they wanted an ordinance which they felt would have more bite. The existing agreement does have a dispute resolution process (binding arbitration) which, when drafted, was viewed as better than the previous process that involved a "mobilehome committee" that proved particularly unwieldy. Unfortunately, employing the arbitration process was similarly difficult. The proposed Agreement, by contrast, incorporates the City's Administrative Citation provisions into it and will allow disputes that cannot be resolved at the City Manager level to be heard, expeditiously, by a neutral hearing officer who hears administrative citation matters on a monthly (or more frequent) basis. That hearing officer can impose fines and order work to be done, both of which can be enforced through normal court proceedings. Ultimately, of course, should the owner simply not abide by the agreement, there is now an express termination provision which, if employed, would result in the application of the Mobilehome Rent Stabilization Ordinance being applied to this Park. Given the level of resident support for this Agreement, staff recommends that Council approve the agreement. If the owner chooses to ignore its terms, not only does the owner stand to lose substantial rent but also to have the Ordinance apply to the Park. Key Elements of the Fairview Trailer Park Agreement The Fairview Trailer Park is a relatively small mobilehome park, consisting of only 22 spaces and without the clubhouse, swimming pool and greenbelt found in the other parks. Of the 22 spaces, 10 are occupied by RV's; the remainder are "single wide" mobile homes. The Park has no age restrictions. As a result, historically the rents in this park have been somewhat less than the two other parks. The proposed agreement with these park owners track in large measure the prior agreement. Rents will be adjusted annually by the Cost of Living, with a 2% floor and a 5% ceiling. When a new resident moves into the Park (called a "Transfer of Ownership" in the Agreement), the park owner may adjust the rent, starting at $750 in 2008 and increasing in $25/year increments. The park owner advises, however, that he generally does not charge the highest rent possible. Moreover, unlike the other two park owners, this park's capital improvements are relatively modest and typically if such improvements are repaired or replaced, the owner has not passed the cost on to the residents. The Agreement provides, however, that such repairs or replacement of capital improvements over $2000 may be amortized and passed on to the residents. Because this Agreement is straight forward and basically the same as the previous agreement, and because the City has received only a few calls about this park (and those calls have centered on a problem with tree branches on an adjoining property), the residents of this park were not asked to vote on this Agreement. Page 6 of 7