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<br />Mr. James Neuerburg, Special Counsel, Best, Best & Krieger, presided at
<br />this portion of the Agenda in place of City Attorney Stephen Edwards.
<br />City Manager Leslie Keane reported on a proposed urgency ordinance re-
<br />garding the freezing of rents for mobile home park spaces.
<br />Ms. Keane continued the City has been receiving numerous complaints from
<br />park tenants alleging pressure from park owners to sign long term leases
<br />or face significant immediate and continuing rent increases. In the
<br />instances associated with Lake Cadena, rent increase notices are accom-
<br />panied by a letter implying that such increases are necessitated solely
<br />by the City's proposed stabilization ordinance. In view of this situa-
<br />tion, Staff is proposing a temporary rent freeze at mobile home parks.
<br />If approved, this action would prevent any increases until such time
<br />as the stabilization ordinance is defeated or approved at the polls.
<br />Since current rent increases are planned for January 1 and February 1,
<br />1990, Staff is proposing this matter as an urgency ordinance, and such
<br />action requires four affirmative votes.
<br />Ms. Keane advised the proposed ordinance includes an appeals officer,
<br />the Director of Community Development, and an appeals board, the Planning
<br />Commission. Park owners who feel that they can present economic hard-
<br />ship information could appeal the rent freeze through a specific process.
<br />Ms. Keane stated the ordinance presented to the Councilmembers has
<br />LO been amended by our special counsel and Mr. Neuerburg will review
<br />® the changes.
<br />co Ms. Keane concluded Staff would recommend the Council waive full read-
<br />ing and adopt Ordinance No. 0-26-89, which will freeze rental spaces
<br />in mobile home parks at their current rates.
<br />Attorney Neuerburg stated the changes are for clarification. For
<br />example, in Section 1, the terms have been clarified and exhibits
<br />have been added. Exhibit "A" consists of true and correct copies
<br />of letters sent to the mobile home tenants.
<br />Councilman Rios asked if the rent control ordinance passes at the
<br />June election, can these park owners obtain compensation from the
<br />results of the proposed rent freeze.
<br />Attorney Neuerburg advised the park owners can petition for a hearing
<br />in front of ithe appeals officer for an adjustment, if they can show
<br />an economic hardship during that period.
<br />City Manager Keane stated this would not, however, be retroactive.
<br />Speaking in favor of the proposed ordinance and the freezing of rents
<br />were the following, stating the continued increases can no longer be
<br />afforded by the majority of tenants or the threats from the park owners:
<br />Mr. Rocky Fredrickson, 2851 South La Cadena Drive, Space #258
<br />Mrs. LaDonna Kent, 700 East Washington, Space #142
<br />Mr. Ramon Nieto, 700 East Washington, Space #102
<br />Speaking in opposition to the proposed ordinance and the freezing of
<br />rents were the following, stating this is a ploy to get around the
<br />referendum process, the legality of such a document is not on solid
<br />ground, the rents are not out of line, and the City should wait until
<br />after the June election:
<br />Mr. Phillip Anthony, 2157 Pacific Avenue, Costa Mesa - owners of Lake
<br />Cadena Mobile Home Park.
<br />Mr. Clay Hage, 3773 Tibbetts Street, Riverside - Western Mobile Home
<br />Association.
<br />Mr. Robert Cordes, 1891 South Coast Highway, Laguna Beach - Glenneyre
<br />Management Company.
<br />Mr. Lawrence Horwitz, Hart, King & Coldren, 200 East Sandpointe,
<br />Santa Ana.
<br />After additional discussion, moved by Councilwoman Cisneros, seconded
<br />by Councilman Lofy, to waive full reading and adopt Ordinance No. 0-
<br />26-89. Upon Roll Call, the Vote was: AYES: Three; Cisneros, Lofy,
<br />Gonzales. NOES: Two; Rios, Rehrer. ABSENT: None. Motion did not
<br />carry.
<br />DEC 19 1989
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