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Minutes 1986-04-23 SP ._, CITY COUNCIL APRIL 23, 1986 ARROYO GRANDE, CALIFORNIA 1 :00 P.M. The City Council met at the Community Building, 211 Vernon Avenue, in a Special Session for a Public Hearing to consider a mobile home rent stabilization ordinance, with Mayor B'Ann Smith presiding. Upon roll ca 11 , Councilmembers Matt Gallagher, Dorace Johnson, Gene Moots and D. G. Porter were present. Mayor Smith said the Notice of Public Hearing had been duly published and all requirements met for this public hearing and invited the public to address the Council. Speaking in favor of rent stabilization for mobile homes in Arroyo Grande and offering proposals to incorporate in a rent stabilization ordinance were BERNARD E. BURKE of 804 Kingsbury Drive, Arroyo Grande; RALPH FLACK of 276 Longden Drive, Arroyo Grande; EUGENE B. FREER of 336 Sunrise Drive, Arroyo Grande; JIM JOHNSON OF 2276 Halcyon Road, Arroyo Grande; CHARLENE HALL of 2700 Highway 1, Space 1, Oceano; MORRIS LEVIN of 132 Hacienda Del Pismo, Pismo Beach; FRANCES PACKARD of 2400-88 Cienega, Oceano; GORDON LEFEBVRE of 281 Sunrise Drive, Arroyo Grande, who read a letter to the Council from JACK QUINN of Sunrise Terrace Mobilehome Park; ETHEL SHAPARD of 844 Innesley Drive, Arroyo Grande; CRAIG AMSPOKER of the Golden State Mobile Home Owners League, and M.J. WAGGONER of 1000 Grand Avenue, Space "Z." Opposing mobile home rent stabilization was MELVIN JOHNSON of Los Osos, owner of the Vagabond Mobile Home Park. He said real estate has to be indexed to other real estate for its current use to be economically viable. RICHARD COLLINS of Torrance, new owner of Sunrise Mobile Home Park, asked the Council to defer rent stabilization until he could assess the situation and negotiate leases with his tenants. JIM BUTTERY of San Luis Obispo, representing Mr. Collins, said passage of rent stabilization would mean the City staff would be acting as manager of it. He asked for a 60 to gO day delay in passage. CHUCK HUGHES of Sacramento and representative of the Western Mobilehome Parks Association, suggested the Council set up a committee of park owners I tenants, the City Finance Director and City Attorney to discuss rent stabilization and fair provisions of an ordinance. Mayor Smith called for others to speak; when no one came forward the public hearing was closed. Mayor Smith pOlled the Council and all members indicated they would be in favor of rent stabilization for mobile homes in Arroyo Grande. Provisions of the Ordinance were discussed. Councilmember Johnson said both sides should sit down and seek fair lease agreements. Councilmember Gallagher said he felt this is a workable agreement and would provide a stable base. Councilmember Porter said it is the intent of the Council to work with residents and management to obtain leases fair and equitable to both. Mayor Smith said she did not believe that overseeing disputes between tenants and park owners would consume considerable City staff time. Mayor Smith said the proposed ordinance would: 1. Tie maximum monthly rent increases to either a percentage of the month rent or the national Consumer Price Index, whichever figure is less; 2. Set the base date for calculating rate increases at April 1, 1986, and allow a park owner or tenant 60 days to rescind any lease agreement signed in the 90 days before the ordinance's enactment; 3. Limit rent control to one year, although the Council could enact another rent control ordinance. CITY COUNCIL APRIL 23, 1986 ARROYO GRANDE, CALIFORNIA PAGE TWO City Attorney Art Shaw read the title of the proposed Ordinance. On motion of Councilmember Johnson, seconded by Councilmember Moots, and unanimously carried) to dispense with further reading of the Ordinance. ORDINANCE NO. C.S. .......... A MOBILEHOME RENT STABILIZATION ORDINANCE OF THE CITY OF ARROYO GRANDE PROVIDING A FORMULA FOR MAXIMUM ANNUAL RENT INCREASES AND PROVIDING A PROCEDURE FOR HARDSHIP EXCEPTIONS Mayor Smith said that constitutes the first reading of the Ordinance, which would have its second reading May 13, 1986, and, if passed, go into effect 30 days thereafter. The meeting was adjourned at 3:30 P.M. MAYOR ATTEST: CITY CLERK