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Home My WebLink About1993-10-01; City Council; Minutes* i 0 0 MINUTES MEETING OF: CITY COUNCIL (Special Meeting) DATE OF MER1NG: October 1,1993 TIME OF MER1NG: 6:OO p.m. PLACE OF MEETING: Ci Council Chambers CALL TO ORDER: Mayor Lewis called the Meeting to order at 6:02 p.m. ROLL CALL was taken by the City Clerk, as follows: Present: Council Members Finnila, Nygaard, Kulchin, Mayor Pro Tem Stanton and Mayor Lewis. Absent: None. 68 1. AB #12,420 - MOBILE HOME PARK RENT CONTROL. Staff presented an overview of the history of the item and staff recommendation. Proponent and opponent positions were reviewed and the following rent control program elements were detailed as contained in the agenda bill: Applicability Base Rent/Fair Market Rent Study Space Rent Increases Capital Improvement Projects Other Pass-Throughs Dispute Resolution Program Administration Legal Costs Mayor Lewis opened the meeting for Public Testimony at 6:55 p.m., and issued the invitation to speak. Jed Robinson, Lanikai Lane Park owner, 9041 Florence, Downey, stated the owners oppose a rent control ordinance because of the specific issues that exist at Lanikai Park. Rent control would not benefit low income housing in the City of Carlsbad, as the majority of the residents would not qualify or be considered as low income housing residents. Mr. Robinson said their main issue is that a rent control ordinance would affect the owners’ property rights since it would transfer property rights to someone else with no compensation. He said the owners are willing to discuss the purchase of that land by the residents; however, they cannot afford to purchase the property. Mr. Robinson stated that the owners had an appraiser determine the market rent in 1991. He said that the owners are asking far that rent on the resale of units or upon lease renewals. 230 L e e t October 1, 1993 Page 2 Mr. Robinson said the owners will take action to protect their property rights, and feel they have put forth reasonable efforts to negotiate a lease extension. He asked for 30 days to negotiate with the residents of the Park to try to work out a resolution to the problem. Colin Wied, 550 West C Street, Hillyer and Irwin, San Diego, stated the Trustee is Mr. P. Garcia, Western Land & Development Company, Chapter 11, Rancho Carlsbad. He stated the Trustee has been discussing matters with the tenants, and all have agreed to a "time out" with respect to rent control. Mr. Garcia is, excited about exploring the possibility of a sale to the residents. He requested a "time out" of 30 days with respect to the rent control ordinance, to give both parties time to complete negotiations. Leigh Rayner, Attorney, White & Bright, 355 West Grand, Suite 2, Escondido, representing Lanikai Lane Homeowners Association, stated the recent sales prices of homes in Lanikai Lane Park reflect the impact of the high rents. He stated many rent control issues have already been decided in the courts, and Mr. Robinson's argument about taking property rights is not valid. He stated that other rents have decreased recently, while the mobile home park rents have continued to increase. Mr. Rayner requested Council pass an urgency ordinance freezing rents until rent control is in place, since there are 77 leases expiring December 31, 1993. He stated that purchase of the park is not economically feasible. He suggested rolling back rents to the 1990 level, with the CPI instituted from that point to the present. Mr. Rayner referred to the City's proposed program, and stated the residents need the ability to approve capital improvements, since they would be sharing the cost. He also stated that the program administration portion is set up to fail. He said the numbers are astounding for administration of the program. The cost for the number of participants of $1 09,000, whether there are 150 or 1,029, is extremely high and would be a tremendous burden on his clients. Don Lincoln, 600 B Street, Suite 2400, San Diego, representing the Rancho Carlsbad Homeowners Association, stated negotiations have been in progress for several weeks, and an agreement was reached today between the Trustee and the residents of Rancho Carlsbad. The Trustee has agreed to postpone giving the renewal 60-day notice of rent increase until December 1st. From now until the end of October, the Trustee will assist residents in determining the feasibility of a sale of the park to the residents. Also, for the next month, the Trustee will not market the property to anyone else. There are 400 residents at Rancho Carlsbad, and 184 written responses were received, with 169 greatly interested in proceeding with negotiations for the sale, Don Downs, 7203 Don Luis, Lakeshore Gardens, stated they are not involved in the rent control problem and questioned if a market study was being done for their park. Charlotte Vail, 7108 Santa Cruz, Lakeshore Gardens, stated their park is not involved in rent control, but they are only one owner away from the need. She stated that the park purchases from SDG&E on a wholesale basis and charges utilities on a retail basis. She stated that AB 673 will be back on the agenda in Sacramento, and that bill would eliminate the security of the lease. Girard Anear, 1728 Calavo Court, spoke in opposition to the mobile home rent control proposal, stating that is between the landowner and the tenants. He cited the costs to the City to institute rent control and to conduct a survey. ,A 2-7 e 0 I October 1, 1993 Page 3 Don Olmsted, 809-27 Olive Avenue, Vista, a homeowner at Lanikai, stated that Council should review a copy of the Blue Ribbon Report to find the reasons for rent control and the justifications, with all facts documented. Leslie Tanner, 6550-30 Ponto Drive, President of Homeowners Association, Lanikai Lane Park, spoke in favor of rent control, giving an example of how the rents have increased. She also explained other charges paid by tenants as well as those proposed. Cheryl McCabe, 6550-124 Ponto Drive, Lanikai Lane Park, spoke in favor of rent control. Bill Maclean, 7400 Santa Barbara, Manager,Lakeshore Gardens, stated that on utility bills, there is a discount for master metered systems, but it does not cover the amount used for the common facilities. He stated he felt matters in a mobile home park can be resolved without government intervention, and Lakeshore Gardens is proof that owners and residents can get along. McMeena Duffell, Lanikai Lane Park, stated she is a low-income tenant and is handicapped, and there are others in the park who qualify for low-income housing. Since no one else wished to speak on this matter, Mayor Lewis closed the public testimony portion of the meeting at 8:44 p.m. RECESS: Mayor Lewis declared a recess at 8:44 p.m., and Council re-convened at 855 p.m., with all Members present. Council discussed the eight primary elements of the proposed program, as follows: 1. Applicability - By consensus, Council concurred with the staff recommendation contained in the agenda bill. 2. Base Rent (Fair Market Rent Studv) - By consensus, Council concurred with the staff recommendation contained in the agenda bill. 3. Soace Rent Increases - By consensus, Council concurred with the staff recommendation contained in the agenda bill, amended to delete the provision for a minimum increase. 4. Capital Improvement Proiects - By consensus, Council concurred with the staff recommendation contained in the agenda bill, amended to include provisions that the residents have some say in the approval of projects and the selection of a contractor, since they are sharing the cost; and provisions to ensure the residents do not have to pay the costs for projects which are the result of deferred maintenance. 5. Other Pass-Throurrhs - By consensus, Council concurred with the staff recommendation contained in the agenda bill. 6. Dispute Resolution - By consensus, Council concurred with the staff recommendation contained in the agenda bill. 25% e 0 4 October 1, 1993 Page 4 7. Proqram Administration - By consensus, Council concurred with the staff recommendation contained in the agenda bill, amended to include the provision that the park owners and the residents share the costs on a 50/50 basis. 8. Leqal Costs - By consensus, Council concurred with the staff recommendation contained in the agenda bill. ACTION: On motion by Mayor Pro Tem Stanton, Council adopted RESOLUTION NO. 93- 279, directing staff to proceed with development of a mobile home park fair market rent study, development of a mobile home rent control ordinance in accordance with their previous actions, establishment of a mobile home rent control fund, and directing staff to return to the City Council with the results of the study and a recommended rent control ordinance; and Council directed the City Attorney to prepare an urgency ordinance placing a moratorium on mobile home rent increases, for consideration at the meeting of October 26, 1993. ADJOURNMENT: By proper motion, the Special Meeting of October 1, 1993, was adjourned at 9:32 p.m. Respectfully submitted, llJ?.dL&& ALETHA L. RAUTENKRANZ City Clerk Harriett Babbitt Minutes Clerk a89