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83-1025_CC_Minutes_Adjourned Regular Meeting3 6 OCTOBER 25, 1983 ADJOURNED REGULAR MEETING OF THE CITY COUNCIL OF THE CITY OF SAN JUAN CAPISTRANO, CALIFORNIA The adjourned Regular Meeting of the City Council of the City of San Juan Capistrano, California, was called to order by Mayor Bland at 7:05 p.m., in the City Council Chamber. ROLL CALL PRESENT: Anthony L. Bland, Mayor Gary L. Hausdorfer, Mayor pro tem Lawrence F. Buchheim, Councilman Kenneth E. Friess, Councilman Phillip R. Schwartze, Councilman ABSENT: None STAFF PRESENT: Stephen B. Julian, City Manager; James S. Okazaki, City Attorney; Mary Ann Hanover, City Clerk; Cheryl Johnson, Recording Secretary. COUNCIL ACTIONS 1. MOBILEHOME PARK REVIEW COMMITTEE RECOMMENDATIONS (SAN JUAN MOBILE ESTATES) (23) This item was continued from the meeting of October 18, 1983. Additional Written Communications: Chart showing computation of permitted rents and charges, submitted by Howard A. Parelskin, Attorney at Law, Barash & Hill, One Century Plaza, 2029 Century Park East, Suite 2050, Los Angeles, 90067, representative for the Park Owner. Mayor Bland advised that consideration would be given to the recommendations of the Mobilehome Park Review Committee regarding the petition submitted by the residents of the San Juan Mobile Estates, noting that this was not a public hearing although testimony would be received from a representative for the residents and a representative for the Park Owner. He stated that the Council found that the petition met the requirements of the Ordinance and will stand as submitted. He cited Section 2-2.905(g) of the Municipal Code regarding relevant factors to consider in evaluating rent increases proposed or effected by the Park Owner. Receipt of Testimony: (1) Frank Bailey, Chairman of the Board of Directors of the San Juan Mobile Estates Residents Association, 32302 Alipaz Street, Space 286, advised that Stewart Parker, Attorney at Law, would present testimony on behalf of the residents. -1- 10/25/83 36 rv, � (2) Stewart Parker, Attorney at Law, 15751 Brookhurst, Suite 201, Westminster, 92683, advised that meaningful negotiation now appeared possible and the matter may be resolved without litigation. Mr. Parker requested the Council take a limited action to affirm the validity of the petition; to indicate that the Ordinance was in effect from the City's position during both of the contested increases; and, to find that the increases in both cases exceeded the _ guidelines of the Ordinance. He further requested that Council defer action on the following matters so that negotiations may continue in good faith: (1) whether the Owner had shown justification to exceed the guidelines and (2) establishment of rent amounts to a time certain, not to exceed two weeks. He invited members of the Council and staff to participate in the negotiations. (3) Howard Parelskin, Attorney and co -counsel for the Park Owner, stated that negotiations were proceeding toward resolution of the matter in a manner satisfactory to all parties; that would not jeopardize the validity of the Ordinance nor severely impact the Park Owner. He stated he did not wish to challenge the validity of the Ordinance; that the Owner had abided by the rent control guidelines with the exception of this petition; and, that the position of the Owner was justified due to the circumstances. He stated that he is not prepared to concede that the May 1, 1982, increase violated the Ordinance because the Ordinance was not in effect at the time that the trial court had declared it unconstitutional and the Mobilehome Park Review Committee had been disbanded. He stated that the fair market value and rate of return had been ignored and discussed the subjective application of the CPI. He advised that he concurred with the request for a continuance and with the affirmation of validity of the petition, but took exception to the statement that the Ordinance was valid and in effect at the time of the increases and that the increases exceed those permitted under the guidelines provided by the Ordinance. (4) Stewart Parker, Attorney, stated that it can be established that the Ordinance was in effect. Limited Action/Continuance: Following discussion, it was moved by Councilman Friess and seconded by Councilman Schwartze to affirm the validity of the petition from the San Juan Mobile Estates homeowners; to affirm that in fact the Ordinance was valid and in effect throughout the time of these increases; and, that the increases imposed exceed that permitted under the guidelines of the Ordinance. With the concurrence of the second, the motion was amended to continue the item for two weeks to November 8, and to appoint a subcommittee of Councilmen Friess and Schwartze to act as observers rather than participants in the negotiation process. The motion carried unanimously. -2- 10/25/83 Mr. Parelskin stated that the attorneys intend to resolve the matter within the next seven days. Councilman Hausdorfer stated that the material received by Council is subjective and Council does not accept it at face value. Councilman Buchheim noted that the Oyharzabal family owns the property, but is not involved in the rent increase situation at the San Juan Mobile Estates. Councilman Friess stated that guidelines need to be set regarding requirements for facts and certifying information. Establishment of Guidelines: Pursuant to the suggestion of the City Manager, it was moved by Councilman Schwartze, seconded by Councilman Hausdorfer and unanimously carried to authorize the City Manager to work with the City Attorney to develop a specific format and guidelines for submittal of information to the Mobilehome Park Review Committee. ADJOURNMENT There being no further business before the Council, the meeting was adjourned at 7:45 p.m., to the next regular meeting date of Tuesday, November 1, 1983, at 7:00 p.m., in the City Council chamber. Respectfully submitted, MAN 2-i lZMA ATTEST: -3- 10/25/83