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THE CITY OF -L!r CITY COUNCIL AGENDA REPORT L pL£ASANTONo January 15, 2013 City Attorney TITLE: TWO MONTH EXTENSION OF AGREEMENT PROVIDING FOR RENT STABILIZATION OF MOBILEHOME SPACE RENTS FOR THE HACIENDA MOBILEHOME PARK SUMMARY The City has had mobilehome rent stabilization agreements for three of its four mobilehome parks since 1988. Such agreements exempt a park owner from regulation under the City's mobilehome space rents ordinance set forth in Chapter 6.60 of the Municipal Code. The existing 2007 agreement with the owner of the Hacienda Mobilehome Park was to expire December 31, 2012. Staff has been working for several months with the owner of that park and its residents to negotiate a new agreement. Agreement is expected to be reached, but a little more time is needed to get there. In light of the good faith efforts toward that goal, the fact that the park owner already noticed rent increases to occur on January 1, 2013 based on those continuing negotiations, that the park owner and residents agreed to a brief extension and a compromise regarding rent to be paid during this two month period, and the difficulty in arranging a special meeting of the City Council during the holidays, the City Manager, with concurrence of the City Attorney, signed a document extending the term of the 2007 agreement for an additional two months so that negotiations can continue. City Council action is now requested to ratify the City Manager's signature on that First Amendment to Agreement Providing for Stabilization of Mobilehome Space Rents in Hacienda Mobilehome Park. RECOMMENDATION Ratify the City Manager's action of December 26, 2012 to sign the First Amendment to Agreement Providing for Stabilization of Mobilehome Space Rents between the City and the owner of the Hacienda Mobilehome Park. FINANCIAL STATEMENT There is no financial impact to the City. Residents of Hacienda Mobilehome Park will pay increased adjusted monthly rent (calculated after subtracting capital improvement costs for longer term residents) of 2.8% which reflects the August 2012 CPI increase, but is less than the 4.8% increase that the park owner had notified residents he intended to impose.