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82-0415_CC_Minutes_Adjourned Regular Meeting.1 R.11 APRIL 15, 1982 ADJOURNED REGULAR COUNCIL MEETING The Adjourned Regular Meeting of the City Council of the City of San Juan Capistrano, California, was called to order by Mayor pr tem Buchheim at 7:11 P.M., in the City Council Chamber, for the purpose of discussing differences between the City's current Mobilehome Park Ordinance No. 439 and a proposed mobilehome park ordinance which would allow arbitration of rent increase disputes by the parties involved. ROLL CALL PRESENT: Phillip R. Schwartze, Mayor (arrived at 8:20 P.M.) Lawrence F. Buchheim, Mayor pro tem Anthony L. Bland, Councilman Kenneth E. Friess, Councilman ABSENT: Gary L. Hausdorfer, Councilman STAFF PRESENT: Stephen B. Julian, City Manager; James S. Okazaki, City Attorney; Steven Coontz, Special Counsel; Mary Ann Hanover, City Clerk; Cheryl Johnson, Recording Secretary. CLOSED SESSION The Council recessed to a Closed Session at 7:13 P.M., for discussion of legal matters, the City Clerk being excused therefrom, and reconvened at 7:30 P.M. CONSIDERATION OF PROPOSED MOBILEHOME PARK ORDINANCE (23) Discussion and History of Ordinance No. 439: The City Manager advised that the City had received a request to adopt a new mobilehome park ordinance which would allow the parties involved in a rent increase dispute to arbitrate the matter; that the request had been made to gain immediate relief from pending rent increases, since Ordinance No. 439 cannot be enforced pending the outcome of the court proceedings. Councilman Friess explained how and why the City's formula for controlling rent increases was derived and summarized events leading up to the challenge to Ordinance No. 439, Judge Crosby's finding against it, and the status of the City's Appeal of that finding. Steven Coontz, Attorney for the City, advised that should a new ordinance be adopted, the present Appeal of Judge Crosby's ruling would be moot and the matter could not be re -litigated; that if the present Appeal were dismissed, the final judgment against it would stand. -1- 4/15/82 Discussion of Proposed Ordinance: Stuart Parker, Attorney for residents of Rancho Alipaz and San Juan Mobile Estates, advised that his clients had requested some way to obtain immediate relief from rising rents; that he felt the most effective relief would be gained from adoption of the proposed ordinance. He pointed out the following features of the proposed ordinance: (1) Decisions regarding contested rent increases would be made by an arbitrator, rather than the Mobilehome Park Review Committee or the City Council; (2) Each mobilehome park would form an association consisting of at least 51% of the residents, and a negotiating committee would be appointed before any rent increases could be contested; (3) During the period of a rent increase dispute, a park owner would only be allowed to collect that portion of the increase up to the Consumer Price Index, rather than the whole amount of the increase; (4) A roll back relief provision to July 1, 1981, would be established and all contested rents collected since July 1, 1981, in excess of the Consumer Price Index, would be returned; (5) Violation would constitute a misdemeanor, with everyday's infraction counted as a separate offense; (6) Provisions for award of a fair and just return to park owners would be set up and permissible expenses to justify an increase would be defined; further, a park owner would be required to reveal operating expenses. Mr. Parker discussed Judge Crosby's ruling regarding the Westminister rent control ordinance; potential costs for arbitration of a dispute; and, the differences between the Westminister ordinance and the proposed ordinance. Richard Blum, Attorney representing several Westminister mobilehome parks, described the negotiating process. He further discussed Judge Crosby's ruling on the Westminister ordinance and noted that park owners had filed a motion for reconsideration. Public Comment: The following persons addressed the Council in favor of continuing the Appeal process with Ordinance No. 439: -2- 4/15/82 I PIZ (1) Darrell Carmichael, Rancho del Avion; (2) Dave Willett, Rancho del Avion; (3) Fred Kelly, E1 Nido; (4) Joe Malash, Rancho del Avion; (5) George Brown, Rancho del Avion; (6) Don Vance, Rancho del Avion. The following persons addressed Council in favor of adoption of the proposed ordinance: (1) Al Arps, San Juan Mobile Estates; (2) Frank Bailey, San Juan Mobile Estates; (3) Emerson Johnson, Rancho Alipaz. Additional Information Meeting Date: At the suggestion of Councilman Friess, and with the consensus of Council, Mayor Schwartze directed that the proposed ordinance be distributed to the various mobilehome park boards of directors for their study; that May 26, 1982, be set as a tentative date for the next informational review session to receive input from the park boards of directors and a possible referral to the Mobilehome Park Review Committee for review and recommendation to Council. Staff was directed to distribute the proposed ordinance with a cover letter and calendar of events for the review process. ADJOURNMENT There being no further business before the Council, the meeting was adjourned at 9:22 P.M., to the next meeting date of Tuesday April 20, 1982, at 7:00 P.M., in the City Council Chamber. ATTEST: d2 PHILLI R. SCHWARTZE, M10 R Respectfully submitted, i• —VER,- CITY CLERK 3- 4/15/82