HomeMy WebLinkAbout1981-02-17; City Council; 6410-3; Mobile Home Park RentsA.-
CITY OF CARLSBAD
AGENDA BILL NO. 6410-Supplement 3
DATE: February 17, 1981 I
DEPARTMENT City Manager
Subject:
MOBILEHOME PARK RENTS
Statement of the Matter
Initial:
Dept.Hd.
C. Atty.�iw
C. Mgr.
At your February 10, 1981 meeting, the City Council
indicated,an intention to discuss this subject further
prior to the expiration of the moratorium on February 28,
1981. Attached is a draft of a proposed mobilehome park
rent ordinance. The Council may wish to invite input
from all concerned parties. It is contemplated that the
Council will not deal with the ordinance at your February 17,
1981 meeting but will adjourn that meeting and "continue the
item until 9 o'clock on Saturday, rebruary 28, 1981. If
the problem has not been solved by mutual agreement between
the park owners and the coach owners prior to that time, it
is recommended that the Council make a decision as to how to
proceed at the February 28th meeting.
If an ordinance is adopted by the necessary 4/5ths vote,, it
will become effective immediately and will supersede the
moratorium ordinance. Rents will then proceed to be adjusted
in accordance with the permanent ordinance. However, it is
possible that the Council would not be able to finally proceed
at that time, which means that there could be a gap between
the expiration of the moratorium and the effective date of
a permanent ordinance. This gap could create significant
hardships and difficulties. It is recommended that it be
avoided if possible. Therefore, also attached is an ordinance
which would extend the moratorium until the permanent ordinance
could become effective.
Exhibits
Ordinance No. 9576.
Ordinance No. 3124 -
Recommendation
That the City Council continue the matter to an adjourned
meeting to be held at 9 A.M. on February 28, 198.1. Additional
staff reports will be made available to the Council prior to
that meeting.
Council Action:
2-17-81 Council continued the matter to an adjourned meeting to be held at 9:00 A.M. on
February 28, 1981.
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ORDINANCE NO.
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AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
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CARLSBAD, CALIFORNIA, AMENDING TITLE 5 OF
THE CARLSBAD MUNICIPAL CODE BY THE ADDITION
OF CHAPTER 5.32 TO FACILITATE RESOLUTION OF
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DISPUTES OVER MOBILEHOME PAP.K RENTS.
The City Council of the City of Carlsbad, California, does
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6 ordain as follows:
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SECTION 1: That Title 5 of the Carlsbad Municipal Code is
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amended by the addition of Chapter 5.32 to read as follows:
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"Chapter 5.32
PROCEDURE FOR RESOLUTION OF
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DISPUTES OVER MOBILEHOME PARK RENTS
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Sections:
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5.32.010 Purpose and intent.
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5.32.020 Definitions.
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5.32.030 Applicability.
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5:32.040 Rental information.
Formation of park negotiating committee.
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5.32.050
5:32.060 Advance notice of rent increases.
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5.3".070 Mobilehome owners response to ballot.
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5.32.080 Acceptance of increase.
532.090 Rejection of increase.
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5:32.100 Meeting of park negotiating committee.
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5.32.110 Tentative agreement ballot.
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5.32.120 Acceptance of agreement.
5.32.130 Rejection of agreement.
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5.32.140 Final offer.
532.150 Acceptance of final offer.
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5:32.160 Rejection of final offer.
5.32.170 Initiation of arbitration.
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5.32.181 Arbitration.
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5.32.190 Venue.
5.32.200 Standards'for arbitration.
5.32.210 Arbitrator's decision.
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5.32.220 Costs.
5.32.230 Retroactivity. -
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5 32 240 Enforcement.
5:32:250 Limitation on fees and assessments.
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5.32.260 Retaliatory eviction.
5.32'.270 Exception -private agreement.
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5.32.280 Severability.
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5.32.010 Purpose and intent. There. is presently within
the surrounding areas, a severe shortage
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the City of Carls a and
of spaces for the location of mobilehomes. Because of the
x shortage there is a low vacancy rate, and rents have been for
several years and are presently in some parks rising rapidly
2 and causing great concern among a substantial number of Carlsbad
residents. These concerns have resulted in strife which
3 jeopardizes the public health, safety and welfare of both the
mobilehome owners and mobilehome park owners. The problems
4 caused by this strife can be avoided if both parties will under-
stand their respective rights as property owners and their.
5 relation to one another. Because their rights are interrelated,
both parties must refrain from certain unilateral acts or practices.
6 This chapter is intended to promote an understanding of these
matters and to provide a procedure to resolve disputes. Due to
7 the high cost of moving mobilehomes, the potential for damage
,resulting therefrom, the requirements relating to the installation
8 of mobilehomes, including permits, landscaping and site prepara-
tion, the lack of alternative homesites for mobilehome residents
9 and the substantial investments of mobilehome owners in such
homes, the mobilehome owner is often in an unequal bargaining
3.0 position with the park owner. This chapter is to protect the right
of mobilehome owners to organize and bargain -collectively by
11 encouraging practices fundamental to the friendly adjustment of
disputes arising out of differences as to rent increases in
0 12 mobilehome parks by restoring equality of bargaining power between
ners. Because of the high cost of
park owners and mobilehome ow
13 moving mobilehomes, the potential for damage resulting therefrom,
a 2 the requirements relating to the installation of mobilehomes,
a 14 including permits, landscaping and site preparation, the lack of
o QIOL o alternative homesites for mobilehome residents and tfig.. pubs tanti al
15investment of mobilehome owners in such homes, the City Council
LL-36 also finds and declares it necessary to establish a means which,
Who 16 if followed, can provide protection to the owners and occupiers
z o�m of mobilehomes from unreasonable rent increases while at the same
-> < 3.7 time recognizing the need of mobilehome park owners to receive
a reasonable return on their property and rent increases
18 sufficient to cover the increased cost of repairs, maintenance,
insurancry, upkeep .and additional amenities.
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It is hereby declared to be the policy of the City of
20 Carlsbad to encourage the practice and procedure of collective
bargaining and protecting mobilehome owners of full freedom of
21 association, self organization and designating representatives
of their own choosing for the purpose of negotiating the terms
22 and conditions of rent, rent spaces, and rent increases of
mobilehome parks, based on present services in effect, present
23' amenities in effect and for additional amenities.
24 The procedures contained herein are intended to enhance
resolution of unreasonable increases in rents by making it
25 advantageous for mobilehome owners and mobilehome park owners
to establish a better understanding for each others positions
26 through communication; hopefully resulting in an agreement on
the amount of rent to be charged. However, if an agreement cannot
27 be reached, the City Council has determined it necessary and
in the public interest to have the disagreement resolved by
28 binding arbitration.
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1. 5:32.020 Definitions. Words used in this chapter shall
have the meaning ascribed to them in this section:
2 (1) ."Arbitration" means a process condurted in
accordance with the California Arbitration provisions
3 contained in Section 1280, et seq. of the California Code of
Civil Procedures.
4 (2) "Arbitrator" means an impartial arbitrator
selected pursuant to this chapter on a case by case basis.
5 (3) "Association" means the mobilehome owners
organization representing the miobilehome owners of at least
6 60% of the occupied spaces within the park.
(4) • "Majority" means a simple majority of the
7 mobilehome owners in a park eligible to vote and voting.
(5) "Mobilehome owner" means any person or persons
8 entitled to occupy a mobilehome dwelling unit pursuant to
ownership thereof. ;
9 (6) "Owner" means the owner, lessor, operator,
manager or designated agent of a park.
10 (7) "Park" means a mobilehome park which rents
spaces for mobilehome dwelling units.
11 (8) "Park Corimittee" means the mobilehome park
committee to be established in each mobilehome park in accordance
c 12, with this chapter.
m' (9) "Rent" means the consideration, including any
2 13 benefits or fees, in connection with the use and occupancy of
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14 a mobilehome space in a park.
S °WRr 0 5.32.030 Applicability. The provisions of this chapter
m<� 15 shall only apply to a park which:
LL•W (1) Contains more than twenty-five spaces; and
z W 8 0 16 (2) Where an association of mobilehome owners has
i Z been"formed and a written notice has been filed by the association
17 with the owner containing: (1) the name and mailing address of
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the association; (2) the names and addresses of the association's
officers; (3) the names and addresses of the persons authorized
to represent the association in dealings with the owner; and (4)
certification that the membership of the association includes all
the mobilehome owners of more than 60% of the occupied spaces
within the park.
5.32.040 Rental information. Within thirty days after notice
to an owner by an association of their existence, if requested the
owner must provide the association with current monthly rental
rates and fees schedule showing the rent for each space within the
park, the schedule which was in effect one year preceding the date
lof activation of the association and the date and amount of any
increases in rent during the interim.
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5 32 050 Formation of park negotiating committee. The owner
and association of a park shall establish a park negotiating com-
mittee consisting of an even number of members --one-half of such
members representatives of the owner, and one-half of such members
representatives of the mobilehome owners. The exact number of
members and alternates if any shall be determined by mutual agree-
ment between the owner and the association.
5.32.060 Advance notice of rent increases. (a). Not later
than sixty calendar days before an increase in rent is to become
applicable, an owner shall provide written notice thereof to the
association and to all mobilehome owners in the park.
(b) Upon receipt by the association of such notice the
association shall promptly send out a secret ballot to all the
mobilehome owners in the park asking for a vote on whether to ac
or reject the rent increase.
5 32.070 Mobilehome owners response -to ballot. Within te..,
days of receipt of a ballot pursurant to section 5.32.060, the
mobilehome owners (1 vote for each space) shall reply to the
association indicating their vote to accept or reject the proposed
Trent increase. The replies shall be tabulated by the association.
The owner shall be afforded the right to be present at such tabu-
lation. The association shall notify the owner of the results.
5.32.080 Acceptance of increase. If a simple majority of the
mobilehome owners voting accept the, proposed increase in rent, it
will become effective on the effective date designated by the owner
on the advance notice of rent increase.
5.32.090 Rejection of -increase. If a simple majority of the
mobilehome owners voting reject the proposed increase in rent, the
matter shall be referred to the park negotiating committee and the
increase shall not be effective.
5.32.100 Meeting of park negotiating_ committee. The park
negotiatiiT ig committee shall meet promptly to consider any proposed
increase which is referred to them and shall investigate, hold
hearings and take any other reasonable steps necessary to resolve
the matter by arriving at a mutually agreeable rent increase. The
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committee shall establish their own rules and procedures. The
committee shall be guided in their deliberations by the purposes
and intent of this chapter. Upon request the owner shall make
available to the committee such information and records concerning
the operation of the park as are reasonably necessary to a deter-
mination of costs of operation and a reasonable return on the
property. The owner shall also furnish the committee with facts
and,figures he relies on to show that the proposed rent increase
is fair and equitable. The committee shall meet for a reasonably
period of time in a good faith effort to reach agreement.
5.32.110 Tentative agreement --ballot. If the park negotiating
committee reaches a tentative agreement on a rent increase, the
association shall promptly by secret ballot poll the mobilehome
owners in the park for acceptance or rejection. The secret ballot
shall include the recommendation of the committee. The time limits
and procedures of section 5.32.070 shall apply to the ballot.
5.32.120 Acceptance of agreement. If a simple majority of
the mobilehome owners voting accept the tentative agreement the
rent increase and any other provisions will become effective as
provided therein.
5.32A30 Rejection of agreement. If the tentative agreement
is rejected the matter shall be referred to arbitration in accor-
dance with the provisions of thin chapter.
5.32.140 Final offer. If after a reasonable period of time
in good faith negotiations an agreement acceptable to the park
negotiating committee has not been reached the owner shall make a
final offer. 'The association shall promptly report this offer
together with their recommendation to the mobilehome owners in the
park and poll them as either,accep+-ance of the final offer or a
rejection and referral of the matter to arbitration. The time
limits and procedures of section 5.32.070 shall apply to the ballot.
5.32.150 Acceptance of final offer. If a simple majority of
the mobilehome owners voting accept the final offer it shall become
effective as provided therein.
5.32.160 Rejection of final offer. If the final offer is
rejected the matter shall be referred to arbitration in accordance
with the provisions of this chapter.
5.32.170 Initiation of arbitration. Upon referral to arbi-
tration the committee shall immediately meet and take steps to
select an arbitrator, and do anything else required to secure a
speedy resolution of the arbitration. If the committee fails to
agree on the selection of an impartial arbitrator within fourteen
days from the referral either the owner or the association shall,
have the right to submit the dispute to the American Arbitration
Association for the selection of an arbitrator pursuant to their
rules.
5.32.180 Arbitration. The arbitrator shall determine the
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rights of the parties in accordance with the law, including
this chapter. The award shall be subject to review as to the
arbitrator's application of the law by any court having
jurisdiction of the matter, whether or not any mistake of the
law shall appear upon the face of the award. As to all questions
of fact, however, the determination of the arbitrator or
arbitrators shall be binding upon all parties and shall be
deemed final and conclusive. Each party shall be entitled to
written findings of fact and conclusions of law as to all issues
determined by the award. Subject to the above limitations the
award granted by the arbitrator shall be binding upon all parties
to the arbitration.
5.32.190 Venue. For the purpose of litigation or
arbitration, venue shall lie in the North County Judicial District,
County of San Diego, State of California, or, if such venue
cannot be exercised, in the Federal or State Court nearest to
the North County Judicial District, County of San Diego.
5.32.200 Standards for arbitration. The arbitrator shall
give due consideration to the purposes and intent of this chapter
in reaching a decision. In evaluating the rent increase proposed
by the owner, the arbitrator shall also consider.increased costs
to the owner attributable to increases in utility rates and
property'taxes, insurance, advertising, governmental assessments,
cost -of -living increases attributable to incidental services,
normal repair and maintenance, capital improvements, upgrading
and addition of amenities or services as well as a fair rate of
return orr the property.
5.32.210 Arbitrator's decision. The arbitrator shall
make a final decision within ten days after the conclusion of
the hearing and notify the owner and the association. The
association shall promptly notify the mobilehome owners of
the arbitrator's decision.
5.32.220 Costs. The costs of arbitration shall be paid
one-half by the owner and one-half by the association.
5.32.230 Retroactivity. (a) The procedures of this
chapter are intended to result in a final resolution of a dispute
prior to the effective date of a rent increase. If negotiations
or arbitration do not result in a final decision by the effective
date, the noticed rent shall be paid provided the amount of the
increase shall be placed in an interest bearing trust account.
'Any negotiated agreement or arbitrator's decision shall.be
retroactive to the noticed effective date and shall provide for
the disbursement of any trust account as a part of any such
agreement or decision.
(b) This chapter shall apply to rents as they existed
on December 31, 1980. Any rent increase to be effective or
effective after that date is subject to this chapter. Upon the
effective date of this chapter, any rent increases suspended by
the City's moratorium ordinances shall become effective. The
increase shall be placed in an interest bearing trust account.
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1 The tenants shall have 30 days to comply with Section 5.32.030.
If they do not, the increases shall be fully effective and
2 the trust account paid to the park owner. If they do comply,
Section 5.32..060(a) shall not apply. The association shall
3 promptly send the notice required by Section 5.32.060 and
the parties shall proceed to resolve the matter in accordance
4 with this chapter. A decision on any such increase shall be
folly retroactive to the originally noticed effective date.
5 5.32.240 Enforcement. (a) Violation of the provisions
6 of this chapter shall not constitute a crime.
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(b) A'mobilehome owners' association may at any time bring ;
q an action in the courts of this state alleging a violation by
an owner of any of the terms of this chapter, including
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but not limited to, the existence of a level of rents in excess
of that allowed and may seek a court order requiring compliance
with the provisions of this chapter.
(c) An owner may at any time file an action in the courts
of this state alleging a violation by an association of the
provisions of this chapter, and may seek a court order directing
compliance with the provisions hereof.
(d) The owner may not enforce a rent increase in excess of
that allowed by this chapter. In the event an owner increases
rents without complying with the provisions of this chapter, such
an increase.shall be deemed null and void, residents shall not be
required to pay such increase except to the -extent it is specif-
ically established by an individually written contract between the
resident and landlord, and any resident who is sought to be
excluded from the park through an unlawful detainer action brought
by the owner to enforce eviction, shall have a right to assert the
invalidity of such increase as a defense to the unlawful detainer
proceedings is failure of the resident to pay such increase.
5.32:250 Limitation on fees and assessments. A mobilehome
owner shall not be charged any fee for other than rent and reason-
able charges for services actually rendered. A mobilehome owner
shall not be charged a security deposit nor a fee for entry,
installation hookup, or landscaping, except as specifically
permitted under Section 798.37 of ;.he Civil Code, as a condition of
any tenancy. There shall be no imposition by the owner of any
fees or assessments until such assessments or fees have been
approved in writing by mobilehome owners representing more than
fifty percent of the spaces within the park.
5.32.260 Retaliatory eviction. Notwithstanding Section
5.32.230 above, in any action brought to recover possession of a
rental unit the court may consider as grounds for denial any
violation of agiy provision of this chapter. further, the
determination that the action was brought in retaliation for the
exercise of any rights conferred by this chapter shall be grounds
for denial. Any action brought within three months of the
determination of a petition filed with the park negotiating
committee shall be presumed to be retaliatory: this presumption
affects the burden of proof, and is rebuttable by the owner.
5.32.070 Exception -private agreement. The City Council
may except a mobilehome park from this chapter provided that
a contract between the park owner and the owners of at least 50%
of the mobilehomes in that park is submitted to the Council and
the Council finds that the contract provides an effective
alternative procedure for resolution of disputes over mobilehome
rents. The exception shall remain in of ect for the term of
the contract. Upon termination of the contract, the park shall
again be subject to the terms of this chapter.
5:32.280 Severability. if any provision or clause of this
chapter or the application thereof to any person or circumstance
is held to be unconstitutional or to be otherwise invalid by any
court of competent jurisdiction, such invalidity shall not affect
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other chapter provisions or clauses or applications thereof which
can be implemented without the invalid provision or clause or
application, and to this end the provisions and clauses of this
chapter are declared to be severable."
EFFECTIVE DATE: This ordinance shall be effective thirty
days after its adoption, and the City Clerk shall certify to the
adoption of this ordinance and cause it to be published at least
once in the Carlsbad Journal within fifteen days after its
adoption.
INTRODUCED AND FIRST READ at a regular meeting of the
Carlsbad City Council held on the day of ,
1981 and thereafter
PASSED AND ADOPTED at a regular meeting of the said Council
held on the _ day of , 1981 by the following
vote, to wit:
AYES:
NOES:
ABSENT:
RONALD C. PACKARD,'Mayor
I ATTEST:
ALETHA L. RAUTENKRANZ, City Clerk
(SEAL)
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ORDINANCE NO.
AN ORDINANCE OF THE CITY COUNCIL OF THE
CITY OF CARLSBAD, CALIFORNIA, EXTENDING
THE MORATORIUM ON RENTAL INCREASES ON
MOBILEHOME SPACESWITHIN THE CITY OF
CARLSBAD.
The City Council of the City of Carlsbad, California
hereby finds and determines as follows:
1. The findings and determinations of Ordinances No. 9565
and No. 9572 continue to be true and are incorporated into this
lordinance.
2. The City Council adopted said ordinances to preserve
the status"quo pending study of the problems resulting from
disputes over mobilehome park rents. That study has resulted
-in a draft ordinance adopting a procedure for resolving disputes
over mobilehome park rents. That ordinance is now before the
City Council.
3. The Council has been made aware of efforts by mobilehome
park owners and owners of mobilehomes to reach private agreements
between themselves to provide a voluntary disn,Ate resolution
procedure. Such procedure would obviate the need for the City
Council to impose a solution. In order to allow these efforts
to be consummated in legally binding agreements, the City Council
has determined to defer consideration of the procedural ordinance
and has determined that it is necessary to extend the moratorium.
NOW, THEREFORE, BE IT ORDAINED by the City Council of the
City of Carlsbad, California, as follows:
SECTION 1: Ordinances No. 9565 and No. 9572 are extended
to This extension is subject to the
terms and conditions of said ordinances which are incorporated
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herein„ by reference, specifically including the provision that the
resolution of the rent increases noticed to go into effect on
January 1, 1981 shall be retroactive to that date.
SECTION 2: This ordinance is hereby declared to be an
emergency ordinance adopted as an urgency measure to protect the
public health, safety and welfare and shall be effective
immediately upon its adoption. The facts constituting the
,emergency are set forth in Ordinances No. 9565, No. 9572 and
above in this ordinance.
SECTION 3: The City Clerk shall certify to the adoption
of this ordinance and shall cause a copy hereof to be published
as required by law.
INTRODUCED, PASSED AND ADOPTED -at a regular meeting of the
City Council of the City of Carlsbad, California held am the
day of , 1981 by the following vote, to wit:
AYES:
NOES:
ABSENT:
RONALD C. PACKARD, Mayor
�) ATTEST:
ALETHA L. RAUTENKRANZ, City Clerk
(SEAL)
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