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HomeMy WebLinkAbout07.A- City Attorney 7.A ORDINANCE (ID # 4702) DOC ID: 4702 CITY OF SAN BERNARDINO — REQUEST FOR COUNCIL ACTION Municipal Code From: Steven Graham M/CC Meeting Date: 11/07/2016 Prepared by: Steven Graham, (909) 384- 5355 Dept: City Attorney Ward(s): All Subject: An Ordinance of the Mayor and Common Council of the City of San Bernardino Amending Chapter 8.90 Related to Mobile Home Rents. FIRST READING (#4702) Current Business Registration Certificate: Financial Impact: Motion: Lay over Ordinance for final adoption. Synopsis of Previous Council Action: September 6, 2016 - Approval of the settlement agreement in Glen Aire Mobilehome Park, et al. v. City of San Bernardino, et al., - San Bernardino Superior Court, Case No. CIVDS 1114110. Background: The City of San Bernardino has approximately 48 mobile home parks. In 1993, the City of San Bernardino passed a rent control ordinance, Chapter 8.90 of the Municipal Code, known as the Mobile Home Rent Stabilization Ordinance. Petitioners in the Glen Aire case are the owners of four parks. The space rents which they may charge are controlled by Chapter 8.90. Petitioners claim that the rents they could charge under Chapter 8.90 were insufficient to pay for the secured debt and other operating expenses of the parks and provide a "fair rate of return" on their investment. The City submitted the request to a Hearing Officer who took testimony on the proposed rent increases. The Hearing Officer made findings and recommended certain rent increases to the City's mobile home rent board. The board set the rent increases at a lower amount than was recommended by the Hearing Officer. The petitioners in the Glen Aire case then filed a writ against the City to obtain the higher amount recommended by the Hearing Officer. The case has been litigated for several years, and if it continues, would likely remain in litigation for several more years. The park owners, the City, and the tenant representatives in the Glen Aire case therefore all agreed to the settlement agreement attached. The agreement is contingent, that is, it will only go into effect if the Mayor and Common Council consider and adopt at a public meeting the attached amendment to Chapter 8.90. Currently, Chapter 8.90 only allows an annual permissive rent increase as a percentage of the Consumer Price Index. Additional increases must be made by requesting an increase from the City's mobile home rent board. The amendment would continue to Updated: 11/3/2016 by Georgeann "Gigi" Hanna I Packet Pg.728 7.A 4702 allow permissive rent increases, and requests to the board, but would also allow a one- time up to ten percent (10%) increase when a current tenant voluntarily vacates a mobile home and a new tenant occupies the mobile home. This allowance would not have an effect on the rent of current residents of the parks. The park owners have indicated that such an allowance would substantially reduce the need to made requests for increases from the mobile home rent board that cause significant uncertainty regarding rent amounts while the requests are pending. City Attorney Review: N/A Supporting Documents: Ordinance Parks (PDF) Glen Aire Settlement (PDF) Updated: 11/3/2016 by Georgeann "Gigi" Hanna Packet Pg. 729 7.A.a 1 AN ORDINANCE OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF 2 SAN BERNARDINO AMENDING CHAPTER 8.90 RELATED TO MOBILE HOME RENTS 3 WHEREAS, the City of San Bernardino contains approximately 48 mobile home 4 parks; and, 5 WHEREAS, on or about March 22, 1993, the City of San Bernardino enacted rent 6 control for all mobile home parks within the city limits pursuant to Ordinance No. MC-865; and, 7 c 8 WHEREAS, on about February 13, 2009, several non-profit corporations requested OE rent increases at Glen Aire, Pacific Palms, Hillside Estates and Orangewood 9 (collectively referred to as "the non-profit parks"). Those rent increases were Q scheduled to be effective on or about May 19, 2009; and, 10 11 WHEREAS, the City appointed the Honorable Donald P. Cole ("Judge Cole") of the California Office of Administrative Hearings as its hearing officer with respect to the o 12 February 13, 2009 rent increases requested by the non-profit corporations. CD Evidentiary hearings were conducted by Judge Cole on or about November 2, 2010, d 13 November 3, 2010 and November 16, 2010; and, o x 14 WHEREAS, on or about June 1, 2011, Judge Cole issued his decision, recommending 15 rent increases at the non-profit parks; and, g N 16 WHEREAS, on or about July 20, 2011 the Mobile Home Rent Board ("the Board") 17 commenced hearings regarding the rent increases recommended by Judge Cole. On N or about October 26, 2011, the Board voted to reduce the rent increases 18 recommended by Judge Cole; and, a a� U 19 WHEREAS, on or about December 5, 2011, the non-profit corporations filed a 0 20 petition for a writ of administrative mandamus with the San Bernardino County o Superior Court. The non-profit corporations contend that the Board's reduction of 21 the rent increases recommended by Judge Cole is neither supported by the law nor the evidence; and, 22 23 WHEREAS, on or about May 1, 2012, the San Bernardino County Superior Court Q issued an order allowing the four non-profits to begin collecting the rent increases 24 awarded by the Board, beginning on June 1, 2012; and, 25 WHEREAS, the non-profit corporations contend that if they are allowed to collect 26 the full amount awarded by Judge Cole, effective from May 19, 2009, the tenants' liability through May 31, 2012, would total at least $1,001,861.64; and, 27 28 Packet Pg. 730 I WHEREAS, the non-profit corporations contend that after accounting for the 2 amounts they have been allowed to collect since the Superior Court's May 1, 2012 order, the are entitled to collect at least another 13 864.39 per month from Y $ , p t the 3 tenants since June 1, 2012, not including interest. The non-profit corporations contend that they are entitled to at least an additional $693,219.50 since May 1, 4 2012. 5 WHEREAS, the City denies that the Board's decision was contrary to law or 6 contrary to the facts, or that the non-profit corporations have been damaged in any amount whatsoever; and, 7 c 8 WHEREAS, the City, non-profit corporations, and tenant representatives have Ea acknowledged that final resolution of the issues arising out of the February 13, 2009 9 rent increase applications may result in years of additional litigation. Rather than E proceeding with costly and time consuming litigation, the parties decided to settle CD 10 any and all disputes between them arising out of the February 13, 2009 rent 11 increase applications, including any and all issues raised in the Superior Court -a Proceedings; and, o 12 a WHEREAS, the settlement is contingent upon the Mayor and Common Council 13 considering and adopting this Ordinance at a public meeting. o 14 NOW, THEREFORE, THE MAYOR AND COMMON COUNCIL OF THE CITY OF z 15 SAN BERNARDINO DO ORDAIN AS FOLLOWS: N 16 SECTION 1.The Mayor and Common Council hereby adopt the recitals and findings f 17 set forth above. N L 18 SECTION 3.Section 8.90.050 of the San Bernardino Municipal Code is hereby repealed in its entirety and replaced with the following'. c 19 20 8.90.050 Exemptions from Coverage. o Y 21 The provisions of this Ordinance shall not apply to the following: 22 A. New Space or First Time Space Exemption - Space rent or space rent 23 adjustments for new mobile home spaces first rented after the effective date of Q this Chapter shall be exempt from the provisions of the Chapter ter to the extent 24 that those rents would have been controlled had the spaces been previously occupied. There shall be no prospective exemption in such circumstances, 25 however, as to rents that may be adjusted annually under this Chapter after a 26 space is first rented. In such cases, the base date for purposes of determining permissible future rent adjustments shall be the date of first rental or 27 conveyance. 28 2 Fpacket Pg. 731 7.A.a 1 2 B. Vacancies 3 1. If the mobile home space is voluntarily vacated by the tenant, or vacated pursuant to California Civil Code Section 798.56, the landlord may adjust 4 the rental rate to any amount as provided in Subsection A of this Section 5 8.90.050. 6 2. If the mobile home is sold and is to remain on site, the landlord may increase the rental rate for the new resident by an amount not to exceed 7 ten percent (10%) of the then existing rent. Any rent increase pursuant to this Subsection B2 shall be implemented at the time the new resident first E occupies the space and/or first enters into a rental agreement with the 5 9 landlord. E a� 10 3. The implementation of any rent increase allowed under this Subsection B shall not change the anniversary date for the annual permissive ED 11 inflationary adjustment to rent allowed under Section 8.90.100(A) of this o` 12 Chapter. 13 4. A vacancy is voluntary if the tenant voluntarily and without coercion by the landlord vacates the rental space or, if the tenant dies and there is no X0 14 surviving cohabitant. 0 15 5. Where the rent is increased pursuant to this Subsection B, the landlord 16 shall, at the time the rent increase is implemented, provide the new tenant o with written notice of the previous base rent for the space, the new base 17 rent for the space in both dollar and percentage terms, and the Y anniversary date for the space for purposes of the annual permissive a 1 inflationary adjustment to rent allowed under Section 8.90.100(A) of this 19 Chapter. c 20 6. The rent increases allowed under this Subsection B shall be in addition to 0 any other rent increases authorized by this Chapter, including but not 21 limited to the annual permissive inflationary adjustment to rent allowed 22 under Section 8.90.100(A) of this Chapter. 23 7. Notwithstanding anything herein to the contrary, nothing in this Chapter shall preclude any landlord from implementing any rent increases that are 24 exempt under the provisions of the California Mobile Home Residency Law, including any rent increases that are exempt under Civil Code 25 Sections 798.17, 798.41 and/or 798.49. 26 27 28 3 FPacket Pg. 732 7.A.a 1 2 SECTION 4. FUTURE AMENDMENTS TO SECTION 8.90.050 3 The Mayor and Common Council reserve the right and authority to amend or repeal the ordinance without any restrictions, however, do acknowledge that such 4 amendment or repeal may create a contractual obligation to the non-profit 5 corporations under the settlement agreement. 6 SECTION 6. EFFECTIVE DATE. 7 This Ordinance shall be in full force and effect on the thirty-first day after adoption. 'a 0 E 8 SECTION 8.SEVERABILITY. 9 Q If any provision of this Ordinance or the application thereof to any person or 10 circumstance is held invalid, such invalidity shall not affect other provisions or 11 applications of the Ordinance which can be given effect without the invalid provision or application, and to this end the provisions of this ordinance are severable. The C> 12 Mayor and Common Council of the City of San Bernardino hereby declare that they would have adopted this Ordinance irrespective of the invalidity of any particular 13 portion thereof. o x 14 SECTION 9.CEQA. 15 2 The Mayor and Common Council of the City of San Bernardino hereby find and ' determine that this Ordinance is not subject to environmental review under the CD 17 California Environmental Quality Act (CEQA) pursuant to Title 14 of the California N Code of Regulations Section 15060(c)(2) (the activity will not result in a direct or - 18 reasonably foreseeable indirect physical change in the environment) and Section a 15060(c)(3) (the activity is not a project as defined in Section 15378) because it has 19 no potential for resulting in physical change of the environment, directly or c 20 indirectly. o L 21 E t 22 w Q 23 24 25 26 /// 27 28 4 Packet Pg. 733 7.A.a I AN ORDINANCE OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF 2 SAN BERNARDINO AMENDING CHAPTER 8.90 RELATED TO MOBILE HOME RENTS 3 4 I HEREBY CERTIFY that the foregoing Ordinance was duly adopted by the Mayor and Common Council of the City of San Bernardino at a meeting 5 thereof, held on the day of , 2016, by the following vote, to wit: 6 COUNCIL MEMBERS: AYES NAYS ABSTAIN ABSENT 7 MARQUEZ r 8 BARRIOS E 9 VALDIVIA a 10 SHORETT U t6 C 11 NICKEL 2 o 12 RICHARD 13 MULVIHILL 0 x 14 w 15 Georgeann Hanna, City Clerk 0 N 16 The foregoing Ordinance is hereby approved this day of , 2016. a 17 Y L 18 a. R. Carey Davis, Mayor 19 City of San Bernardino c 20 Approved as to form: Gary D. Saenz, City Attorney ° 21 22 By: a 23 24 25 26 27 28 5 Fpacket Pg.734 }Es. CONTINGENT SETTLEMENT AGREEMENT AND RELEASE OF CLAIMS This Contingent Settlement Agreement and Release of Claims ("Agreement") is entered into by and between Glen Aire Mobilehome Park Corporation, Pacific Palms Mobilehome Park Corporation, Friendly Village Mobilehome Park Corporation, Orangewood Mobilehome Park Corporation and the Affordable Community Living Corporation' (collectively referred to as the"non-profit corporations")on the one hand,and CD the City of San Bernardino,the City of San Bernardino Mobile Home Rent Board and the E City of San Bernardino acting as the Successor Agency to the Redevelopment Agency of the a� City of San Bernardino (originally named as the City of San Bernardino Economic E Development Agency)(collectively referred to as"the City"),on the other hand. Real Parties in Interest Deanna Ditto, Randall Samford,Wilma Henning and Bert W. Dodd,Jr.,are also �a signatories to this Agreement. L 0 RECITALS c m A.) Glen Aire Mobilehome Park Corporation owns and operates Glen Aire E Mobilehome Park,a 131 space non-profit mobilehome park located at 222 S.Rancho Avenue = in the City of San Bernardino, County of San Bernardino. 0 B.) Pacific Palms Mobilehome Park Corporation owns and operates Pacific Palms Mobilehome Park,a 142 space non-profit mobilehome park located at 2727 E.Pacific Street in the City of San Bernardino, County of San Bernardino. c C.) Friendly Village Mobilehome Park Corporation owns and operates Hillside E Estates Mobilehome Park,an 84 space non-profit mobilehome park located at 2151 W.Rialto Avenue in the City of San Bernardino, County of San Bernardino. Cn Q D.) Orangewood Mobilehome Park Corporation owns and operates Orangewood Mobilehome Park, a 155 space non-profit mobilehome park located at 2160 W. Rialto C9 Avenue in the City of San Bernardino, County of San Bernardino_ c m E.) The City of San Bernardino, the City of San Bernardino Mobile Home Rent Board, the City of San Bernardino Economic Development Agency and the City of San Bernardino Hearing Officer, Donald P. Cole, have been and/or are charged with a ' The Affordable Community Living Corporation was formerly known as the California Mobilehome Corporation and the San Bernardino Mobilehome Park Corporation. Page 1 of 15 Packet Pg. 735 Y 1 , administering one or more provisions of the City of San Bernardino's mobilehome rent stabilization laws. F.) The City of San Bernardino contains approximately 48 mobilehome parks, including GIen Aire, Pacific Palms, Hillside Estates and Orangewood_ On or about March 22, 1993,the City of San Bernardino enacted rent control for all mobilehome parks within the city limits, including Glen Aire, Pacific Palm, Hillside Estates and Orangewood. c G.) On about February 13, 2009, the non-profit corporations requested rent E increases at Glen Aire,Pacific Palms,Hillside Estates and Orangewood(collectively referred to as"the non-profit parks"). Those rent increases were scheduled to be effective on or about �E May 19, 2009. c H.) The City appointed the Honorable Donald P. Cole ("Judge Cole") of the = California Office of Administrative Hearings as its hearing officer with respect to the p February 13, 2009 rent increases requested by the non-profit corporations. Evidentiary c hearings were conducted by Judge Cole on or about November 2, 2010,November 3,2010 CD and November 16, 2010. E E 0 x I.) On or about June 1,2011,Judge Cole issued his decision,recommending rent 2 increases at the non-profit parks in the following amounts: o Mobilehome Park Rent Increases Recommended by Judge Cole c" Glen Aire: $75.24 per space per month Pacific Palms: $75.46 per space per month E Orangewood: $66.16 per space per month d Hillside Estates: $108.69 per space per month m a J.) On or about July 20, 2011 the Mobile Home Rent Board ("the Board") W commenced hearings regarding the rent increases recommended by Judge Cole. On orabout O October 26,2011,the Board voted to reduce the rent increases recommended by Judge Cole a to the following amounts: E Mobilehome Park Rent Increases Awarded by Board *° .r a Glen Aire: $32.65 per space per month Pacific Palms: $36.00 per space per month Orangewood: $47.90 per space per month Page 2 of 15 e Packet Pg.736 Hillside Estates: $33.90 per space per month K.) On or about December 5,2011,the non-profit corporations filed a petition for a writ of administrative mandamus with the San Bernardino County Superior Court. The non-profit corporations contend that the Board's reduction of the rent increases recommended by Judge Cole is neither supported by the law nor the evidence. The non- profit corporations contend also that the City violated the Public Records Act and the Brown Act. Glen Aire Mobilehome Park Corporation,et. al. v. The City of San Bernardino, et. al., E San Bernardino County Superior Court Case No. CIVDS1114110 ("the Superior Court c Proceedings"). E 4 (D L.) On or about January 9, 2012, pursuant to ABX 1 26 as codified in Health & c Safety Code Section 34173,the Mayorand Common Council("the City Council")of the City c of San Bernardino agreed to have the City of San Bernardino serve as the successor agency 0 to the Redevelopment Agency of the City of San Bernardino, which had been named in the = Superior Court Proceedings as the City of San Bernardino Economic Development Agency. The legal name for the successor agency is the City of San Bernardino Acting as the Successor Agency to the Redevelopment Agency of the City of San Bernardino. =o m M.) On or about May 1, 2012,the San Bernardino County Superior Court issued c an order allowing the four non-profits to begin collecting the rent increases awarded by the Board,beginning on June 1, 2012. c ti v N.) The non-profit corporations contend that if they are allowed to collect the full amount awarded by Judge Cole,effective from May 19, 2009,the tenants' liability through May 31, 2012, would total at least $1,001,861.64, not including interest, calculated as 2 V follows: m Cn Park Award Spaces Months Back Rent L a Glen Aire $75.24 x 114 x 36 $308,784.96 C C9 Pacific Palms $75.46 x 96 x 36 $260,789.76 a) Orangewood $66.16 x 101 x 36 $240,557.76 E U Hillside Estates $108.69 x 49 x36 $191,729.16 2 Q TOTAL $1,001,861.64 O.) The non-profit corporations contend that after accounting for the amounts they have been allowed to collect since the Superior Court's May 1,2012 order,they are entitled Page 3 of 15 1 Packet Pg. 737 1 Or to collect at least another $13,864.39 per month from the tenants since June 1, 2012, not including interest, calculated as follows: Park Uncollected Spaces Per Month Glen Aire $42.59 x 114 $4,855.26 Pacific Palms $39.46 x 96 $3,500.16 Orangewood $18.26 x 101 $1,844.26 E Hillside Estates $74.79 x 49 $3,664.71 c CD TOTAL $13,864.39 E Q m P.) Fifty months have passed since the Superior Court's May 1,2012 order and the c preparation of this settlement agreement. Accordingly,the non-profit corporations contend that they are entitled to at least an additional $693,219.50 based on Judge Cole's recommended decision ($13,864.39 x 50 months= $693,219.50). When coupled with the tr $1,001,861.64 that has accumulated for the period prior to May 31, 2012, the non-profit (D corporations contend that their losses resulting from the Board's decision currently total at c least$1,695,081.14,not including interest($1,001,861.64 +$693,219.50=$1,695,081.14).' Q.) The City denies that the Board's decision was contrary to law or contrary to the g° facts, or that the non-profit corporations have been damaged in any amount whatsoever. 0 v R.) On or about August 1, 2012, the City of San Bernardino commenced bankruptcy proceedings pursuant to Chapter 9 of the United States Bankruptcy Code. In re: m City of San Bernardino, California,United States Bankruptcy Court for the Central District of California, Case No.6:12-bk-28006-MJ. ("the Bankruptcy proceedings"). As a result of Cn the Bankruptcy proceedings, the Superior Court Proceedings were subject to an automatic stay, pursuant to 11 U.S.C. Sections 362(a) and 922(a). a _ S.) On or about January 23, 2013,the Bankruptcy Court modified the automatic C7 stay in the Bankruptcy proceedings, thereby allowing the Superior Court Proceedings to c resume, provided certain conditions were met. As a result of the modified stay, the non- E profit corporations were allowed to proceed with the writ proceedings, have Kavanau adjustments determined,pursue injunctive relief under the Brown Act and the Public Records Q Act,and"take all necessary steps to mitigate their damages by attempting to collect any legal ' The non-profit corporations contend further that if interest is calculated for the period since May 19, 2009, their damages exceed $2,000,000.00. Page 4 of 15 Packet Pg.738 rents from the tenants." However, the non-profit corporations could not pursue monetary awards from the City without further order of the Bankruptcy Court. T.) On or about October 11, 2013, the Superior Court granted summary adjudication in favor of the non-profit corporations with respect to their claims under the Public Records Act. However, the non-profit corporations have not filed a motion for attorneys fees with respect to their claims under the Public Records Act, in part because of the modified stay in the Bankruptcy proceedings. E U.) On or about October 7, 2014, the Superior Court issued its statement of decision with respect to the petition for a writ of administrative mandamus filed by the non- �E profit corporations in the Superior Court Proceedings. In its statement decision,the Superior (D Court remanded the administrative proceedings to the Board,to"explicate its reasoning"and to "make specific findings, connecting those findings to the evidence relied upon, and explain how those findings lead to the ultimate conclusion." p CD .r _ V.) In its October 7,2014 statement of decision,the Superior Court found also that its remand order was interlocutory,"due to the outstanding Brown Act cause of action." E 0 W.) On or about September 10, 2015, the Superior Court denied the non-profit corporations' motion to disqualify the Board members selected by the Mayor and City 0 Council, in part because that motion was premature. At that same time, the Superior Court advised that it retained jurisdiction to rule on any motion that might be filed to confirm a good faith settlement,pursuant to Code of Civil Procedure Section 877.6. _ X.) Deanna Ditto is a Real Party in Interest in the Superior Court Proceedings. E Deanna Ditto has been a resident at Space No. 108 at Pacific Palms Mobilehome Park since July of 1977. Deanna Ditto is also an employee of Santiago Communities,Inc.,which is the in company that manages the non-profit parks. L Q Y.) Randall Samford, Wilma Henning and Bert W. Dodd, Jr. are Real Parties in Interest in the Superior Court Proceedings. Randal Samford is a resident at Hillside Estates. Wilma Henning is a resident at Glen Aire. Bert W. Dodd, Jr. is a resident at Pacific Palms. Z.) The parties to this Agreement acknowledge that final resolution of the issues arising out of the February 13, 2009 rent increase applications may result in years of `t additional litigation. Rather than proceeding with costly and time consuming litigation, the parties to this Agreement have decided to attempt to settle any and all disputes between them arising out of the February 13,2009 rent increase applications, including any and all issues raised in the Superior Court Proceedings. Page 5of15 N; Packet Pg.739 WHEREFORE, IN CONSIDERATION OF THE MUTUAL PROMISES CONTAINED HEREIN, THE PARTIES AGREE AS FOLLOWS: AGREEMENT 1.) The Non-Profit Corporations are Entitled to the Rent Increases Awarded by the Board: The parties agree that the non-profit corporations are entitled to the rent increases awarded by the Board,effective as of June 1, 2012, in the following amounts: -Ea c Mobilehome Park Rent Increases Awarded by Board (D E Glen Aire: $32.65 per space per month Pacific Palms: $36.00 per space per month _ 'v Orangewood: $47.90 per space per month O Hillside Estates: $33.90 per space per month _ a� E 2.) The Non-Profit Corporations Waive Their Claims to the Additional Rent x Increases Recommended by Judge Cole: As stated above, the non-profit corporations m contend that they are entitled to rent increases based on the difference between the rent 0 increases awarded by the Board and the rent increases recommended by Judge Cole. The non-profit corporations hereby waive any rights they may have had to rent increases in c addition to the amounts awarded by the Board with respect to the February 13, 2009 rent g increase applications. a� E 3.) The Non-Profit Corporations Waive any Rights They May Have to Retroactive Rent Increases and/or a Kavanau Adjustment: As stated above, the non- profit corporations contend that they are entitled to retroactive rents and/or a Kavanau adjustment dating back to May 19,2009. The non-profit corporations hereby waive any right `t they may have had to seek retroactive rents and/or a Kavanau adjustment with respect to the February 13, 2009 rent increase applications. c a� 4.) This Agreement is Contingent Upon a Determination that it is a Good Faith Settlement: The non-profit corporations shall file a motion in the Superior Court Proceedings seeking a determination that this Agreement is a good faith settlement,pursuant Q to Code of Civil Procedure Section 877.6. Should the courts decline to approve the settlement as a good faith settlement, this Agreement will be of no force or effect and the parties will be free to pursue any and all of their rights in whatever jurisdiction may be appropriate, including the Superior Court Proceedings. Page 6 of 15 Packet Pg. 740 7.A.b 5.) This Agreement is Contingent Upon the City Council Approving the Amendments to the Ordinance Proposed by the Non-Profit Corporations: The non- profit corporations have proposed several amendments to the ordinance, for consideration by the City Council,following a properly noticed public hearing. The proposed amendments are attached hereto as Exhibit A. In addition to the courts approving this Agreement as a good faith settlement pursuant to Code of Civil Procedure Section 877.6,this Agreement is contingent upon the proposed amendments being approved by the City Council and r_ becoming effective on or before December 31, 2016. E c (D The parties acknowledge that the City Council is free to accept or reject the proposed E amendments. The parties acknowledge also that at the time this Agreement was entered into the City Council had not agreed to accept or reject the proposed amendments. The parties acknowledge further that the discussion and decision regarding whether to accept or reject the proposed amendments will occur at a public meeting of the City Council. In the event p the proposed amendments are rejected by the City Council and/or fail to become effective r_ on or before December 31,2016,this Agreement will be of no force or effect and the parties will be free to pursue any and all of their rights in whatever jurisdiction may be appropriate, E E including the Superior Court Proceedings. _° d 6.) Future Amendments to the Ordinance: The parties acknowledge that the 0 current City Council cannot prevent future City Councils from further amending the ordinance, thereby modifying or eliminating the rent increases allowed by this Agreement h and/or the proposed amendments. It is the intention of the parties to this Agreement that any r! such modification or change of the ordinance shall not deprive the non-profit corporations of the monetary value of the rents contemplated by this Agreement. E E m Should the laws of the City of San Bernardino be changed so as to deprive the non- cn profit corporations of either the June 1, 2012 "base rents" determined by the Board, the annual eighty percent (80%) inflationary adjustments allowed by Section 8.90.100A of the = current ordinance,or the ten percent(10%)increases in turnover allowed under the proposed amendments,the City shall become contractually obligated to pay the non-profit corporations the difference between the amounts contemplated by this Agreement and the amounts CD actually allowed under the laws of the City of San Bernardino. M For example, assume that a future City Council amends the ordinance to limit the Q annual inflationary adjustment to fifty percent(50%)of the increase in the Consumer Price Index and the increase on turnover to five percent (5%). In that case, the City would be contractually obligated to pay the non-profit corporations the following: Page 7 of 15 Packet Pg. 741 (1) The difference between eighty percent(80%)of the increase in the consumer price index and fifty percent (50%) of the increase in the Consumer Price Index at each of the rent controlled spaces at each of the non-profit parks;and (2) The difference between a ten percent (10%) increase on turnover and a five percent(5%)increase in turnover for each qualifying space at each of the non- profit parks. c This contractual obligation shall extend for so long as the non-profit corporations E continue to own and/or operate the non-profit parks, so as insure that the non-profit corporations receive the full benefit of their bargain with the City. Provided,however, that E the City may relieve itself of this contractual obligation by repealing its controls on mobilehome space rents at the non-profit parks. Provided further,that should mobilehomc space rent controls be subsequently rc-enacted by the City, the City shall again become contractually obligated to paythe non-profit corporations the difference between the amounts p that would have been allowed under this Agreement,and the amounts actually allowed under the laws of the City of San Bernardino. W (D E Any claim by the non-profit corporations for non payment and/or breach of contract = under this paragraph shall be subject to the claim filing requirements of California Government Code Sections 910,et.seq,including, if applicable,the requirement of Section 0 911.2 that a claim for breach of contract be presented not more than one year after the claim accrues,subject to modification by any successor or other statutes that may be adopted by the o state of California. c The City shall provide the non-profit corporations written notice of any such E amendment to the ordinance within thirty (30) days after the effective date thereof. The statute of limitations for any claims by the non-profit corporations based on any such in amendments shall be deemed to be tolled until such time as the City has provided written notice to the non-profit corporations of said amendments. Q c a� t7 7.) Future Rent Increases:Nothing in this Agreement shall prevent the non-profit corporations from applying for any rent increases they may be entitled to under any applicable local,state or federal law, including but not limited to any rent increase that may be required to provide the non-profit corporations with a fair return on investment and/or a Y fair return on property. a 8.) Dismissal of Real Parties in Interest: Should the courts finally approve the settlement pursuant to Code of Civil Procedure Section 877.6 and should the proposed amendments be approved by the City Council and go into effect on or before December 31, Page 8 of 15 0' Packet Pg.742 1 2016, the non-profit corporations shall dismiss all of the Real Parties in Interest in the Superior Court proceedings, without prejudice, except Deanna Ditto, Randall Samford, Wilma Henning and Bert W.Dodd,Jr. Said dismissal of the Real Parties in Interest shall be filed within fifteen (15) days of final approval by the courts of the settlement pursuant to Code of Civil Procedure Section 877.6, or the proposed amendments going into effect, whichever occurs last. s. 9.) Dismissal of the City With Prejudice: Within thirty(30) days of the above d described dismissal of the Real Parties in Interest, the non-profit corporations, the City, E Deanna Ditto, Randall Samford, Wilma Henning and Bert W. Dodd, Jr. shall execute a = m stipulated judgment,requiring the dismissal of the Superior Court Proceedings with respect E to all remaining parties, with prejudice, with the Superior Court retaining jurisdiction to W enforce the terms of the settlement, pursuant to Code of Civil Procedure Section 664.6. A = copy of the stipulated judgment to be executed by the parties is attached hereto as Exhibit B. L 0 The stipulated judgment shall be filed with the Superior Court within fifteen(15)days m of its execution by the parties to this Agreement. d E 10.) Duty to Cooperate: The parties shall cooperate in good faith to execute any =° and all documents that may be required to implement this Agreement, including but not limited to the stipulated judgment described in the preceding paragraph of this Agreement. 0 11.) The Non-Profit Corporations May Waive the Good Faith Settlement 0 Requirement: In order to protect their interests to the fullest extent possible,the non-profit corporations have asked that this Agreement be contingent upon final approval the courts c of this Agreement as a good faith settlement, pursuant to Code of Civil Procedure Section E m 877.6. However, the parties recognize that this Agreement may be enforceable between F themselves, even if a good faith settlement motion is not made. Accordingly, the parties in hereby agree that the non-profit corporations shall have the right to waive the requirement that this Agreement be approved as a good faith settlement, pursuant to Code of Civil Procedure Section 877.6. The parties agree further that no party other than the non-profit corporations shall have the right to waive the requirement regarding good faith settlement. The parties agree further that any such waiver by the non-profit corporations must be in E writing and signed b the attorney for the non-profit corporations. g Y Y P U m 12.) Denial of Liability: Nothing in this Agreement may be construed as an a admission of liability or wrongdoing by the parties hereto. This provision is not mere boilerplate but is a material part of this Agreement. 13.) Release by the Non-Profit Corporations: Except as specifically set forth Page 9 of 15 Fpacket Pg. 743 herein, the non-profit corporations, on their own behalf, on behalf of their attorneys, representatives, assigns and successors-in-interest,hereby release and forever discharge the City of San Bernardino,the City of San Bernardino Mobile Home Rent Board, and the City of San Bernardino Acting as the Successor Agency to the Redevelopment Agency of the City of San Bernardino (named as the City of San Bernardino Economic Development Agency) and their current and former officials, members, partners, officers, employees, agents, hearing officers, attorneys, representatives, assigns, parent and affiliated companies, predecessors, and successors-in-interest; and Deanna Ditto, Randall Samford, Wilma Henning and Bert W.Dodd,Jr.,from any and all claims,causes of action,actions,damages, -Ea losses, demands, accounts, reckonings, rights, debts, liabilities, obligations, disputes, controversies, payments, costs, and attorneys' fees of every kind and character, known or E unknown, existing or contingent, latent or patent, related to any matter alleged in, arising 4) from,or related to the February 13,2009 rent increase applications,including but not limited to any and all claims in the Superior Court Proceedings. L O 14.) Release by the City: Except as specifically set forth herein, the City, on its own behalf, and on behalf of its Mobile Home Rent Board, its Economic Development W Agency, its Hearing Officer and its attorneys, representatives, assigns and successors-in- E interest, hereby releases and forever discharges the non-profit corporations, and its current x° and former officials, members, partners, officers, employees, agents, attorneys, representatives, assigns, parent and affiliated companies,predecessors, and successors-in- o interest, and Deanna Ditto, Randall Samford, Wilma Henning and Bert W. Dodd, Jr., from any and all claims,causes of action,actions,damages,losses,demands,accounts,reckonings, h rights,debts,liabilities,obligations,disputes, controversies,payments,costs,and attorneys' fees of every kind and character,known or unknown,existing or contingent,latent or patent, c a� related to any matter alleged in,arising from,or related to the February 13,2009 rent increase E applications, including but not limited to any and all claims in the Superior Court CD Proceedings. cn m L 15.) Release by Deanna Ditto,Randall Samford,Wilma Henning and Bert W. a Dodd,Jr.: Except as specifically set forth herein, Deanna Ditto, Randall Samford, Wilma Henning and Bert W. Dodd, Jr., on their own behalf, on behalf of their attorneys, representatives, assigns and successors-in-interest,hereby release and forever discharge the E non-profit corporations,the City and their current and former officials, members,partners, officers,employees,agents,hearing officers,attorneys,representatives, assigns,parent and affiliated companies,predecessors,and successors-in-interest from any and all claims,causes Q of action,actions,damages, losses,demands, accounts,reckonings,rights,debts,liabilities, obligations, disputes, controversies,payments, costs, and attorneys' fees of every kind and character, known or unknown,existing or contingent, latent or patent,related to any matter alleged in, arising from, or related to the February 13, 2009 rent increase applications, Page 10 of 15 Packet Pg. 744 _ V ' o CI including but not limited to any and all claims in the Superior Court Proceedings. 16.) Unknown Claims and Waiver of Civil Code Section 1542: Except as specifically set forth herein, the parties, and each of them, understand and agree that the above described releases cover and include all claims of every kind and nature, whether known or unknown, suspected or unsuspected, arising out of or in any way connected with the February 13, 2009 rent increase applications, including but not limited to any and all claims in the Superior Court Proceedings. Except as specifically set forth herein,the parties, and each of them, expressly agree to waive any and all rights under Section I542 of the E California Civil Code with respect to the released claims,which Section provides as follows: CD E "A general release does not extend to claims which the creditor (D U does not know or suspect to exist in his or her favor at the time = of executing the release, which if known by him or her must _ have materially affected his or her settlement with the debtor." p c Having been so informed,the parties,and each of them,hereby elect to and do waive the provision and benefits of California Civil Code section 1542 for claims arising out of or E related to the February 13, 2009 rent increase applications, including but not limited to any =° and all claims in the Superior Court Proceedings. 0 17.) Heirs, Successors and Assigns: This Agreement shall be binding upon the parties and on their respective heirs, successors and assigns. h v 18.) Assignment of Claims: Each of the parties warrants and represents that he, c she or it has not assigned his,her or its rights with respect to any of the matters described in E ei this Agreement to any other person or entity and that the party has full authority to enter into this Agreement. (n a� L 19.) Attorneys Fees and Costs: Each party shall bear its own attorneys fees and costs with respect to the disputes settled hereby, including but not limited to the Superior °0 t7 Court proceedings. m E 20.) Amendment: This Agreement may be amended only by a written document signed by each of the parties hereto. d 21.) Entire Agreement: This Agreement constitutes the entire understanding and agreement of the parties with respect to the February 13, 2009 rent increase applications, including but not limited to any and all claims in the Superior Court Proceedings. w�•. Page 11 of 15 L Packet Pg. 745 G� 22.) Authority to Sign Agreement: Each person signing this Agreement warrants and represents that he or she has the authority to sign this Agreement on behalf of himself or herself,and/or on behalf of any other person or entity set forth with his or her name on the signature lines below. 23.) Right to Attorney: Each party warrants and represents that in executing this Agreement,he,she or it has had the opportunity to receive legal advice from the attorney of his,her or its choice and to have the terms of this Agreement and its consequences(including risks, complications, and costs) completely explained to him, her or it by that attorney. E a� 24.) Signatures: This Agreement may be executed in multiple counterparts and E will be binding upon the parties as though one original had been signed by all parties. A facsimile or electronic signature on this Agreement shall have the same full force and effect as an original. Notwithstanding the full force and effect of any facsimile or electronic = signature,each party warrants and represents that it will provide an original signature to the O other party by regular mail within thirty (30) days of any facsimile or electronic signature. v o: 25.) Opportunity to Read Agreement: By execution of this Agreement, each o signatory acknowledges and agrees that he or she has read and understands the terms and x provisions of this Agreement. 2 0 26.) Severability: If any provision of this Agreement is found to be unenforceable, N in whole or in part,the remainder of this Agreement shall be enforced as fully as possible and the unenforceable provision(s) shall be deemed modified to the limited extent required to `r permit enforcement of the Agreement as a whole. E ai IT IS SO AGREED: 0 n e Mobilehome Park Corporation L Q Dated: , 2016 y: Dennis Kazarian ' 's esident E E s U R Pa alms Mobilehome Par Corporation `t Dated: ' 2016 y: Dennis Kazari n, is resident Page 12 of 15 Packet Pg. 746 Friendly Village Mobilehome Park Corporation 7-i� K- ;.,�- Dated: ,2016 v-,-, By: Dennis Kazarian it' President _ a� Orangewood Mobilehome Park Corporation E C E Dated: , 2016 By: Dennis Kazaria , it' Pr sident c v L O Affor ommunity Livin Corporation c CD o_ �p ,!� E Dated: L� ' 2016 W ^ _ By: Dennis Kazaria , it' Pre ident 0 N O ti Dated: , 2016 The City of San Bernardino,the City of San Bernardino d Mobile Home Rent Board, and the City of San Bernardino Acting as the Successor Agency to the E Redevelopment Agency of the City of San Bernardino (named as the City of San Bernardino Economic in Development Agency) 4 d t9 By: City Manager, City of San Bernardino E U R a. Dated: ,2016 . Deanna Ditto,Real Party in interest Q By: Deanna Ditto Page 13 of 15 Packet Pg.747 7.A.b Friendly Village Mobilehome Park Corporation Dated: , 2016 By: Dennis Kazarian, it's President c Orangewood Mobilehome Park Corporation E c d E Dated: , 2016 a m By: Dennis Kazarian, it's President c L 0 Affordable Community Living Corporation m a: m E Dated: , 2016 0 By: Dennis Kazarian, it's President m 0 N O Dated: , 2016 The City of San Bernardino, the City of San Bernardino Iq Mobile Horne Rent Board, and the City of San Bernardino Acting as the Successor Agency to the Redevelopment Agency of the City of San Bernardino (named as the City of San Bernardino Economic cn Development Agency) 4 c C7 u By: City Manager, City of San Bernardino E U l6 Dated: x.3(3 _, 2016 Deanna Ditto, Real Party in Interest a By: Deanna Ditto Page 13 of 15 Fpacket Pg. 748 7.A.b Friendly Village Mobilehome Park Corporation Dated: , 2016 �— By: Dennis Kazarian, it's President — Orangewood Mobilehome Park Corporation a=i E _ m Dated: , 2016 a — W By: Dennis Kazarian, it's President c L Affordable Community Living Corporation a� x W E Dated: 12016 0 By: Dennis Kazarian, it's President 0 N O ti Dated: , 2016 The City of San Bernardino, the City of San Bernardino Mobile Home Rent Board, and the City of San m Bernardino Acting as the Successor Agency to the E Redevelopment Agency of the City of San Bernardino (named as the City of San Bernardino Economic Cn Development Agency) a d By: City Manager, City of San Bernardino E �o w a Dated: 2016 Deanna Ditto, Real Party in Interest By: Deanna Ditto Page 1.3 of 1.5 Packet Pg.749 Dated: 12016 Randall Samford, Real Party in Interest i i By: Randall Samford c Dated: , 2016 Wilma Henning, Real Party in Interest d E c (D E a By: Wilma Henning = c �a Dated: , 2016 Bert W.Dodd,Jr., Real Party in Interest c a� a: a� E 0 By: Bert W. Dodd, Jr. 0 5 N O ti d' a+ C d APPROVED AS TO FORM AND CONTENT: m m a� Law Office of Anthony C. Rodriguez a Dated: a '2016 By: Anthony C. Rodriguez,Esq. E Attorney for GIen Aire Mobilehome Park Corporation, Pacific Palms Mobilehome Park Corporation, Friendly Q Village Mobilehome Park Corporation, Orangewood Mobilehome Park Corporation and the Affordable Community Living Corporation Page 14 of 15 Packet Pg. 750 Dated. ��- ,2016 d U Sa o ea xrty in I Brest By: Od 1l Ord C d Dated: ,2016 Wilma Yenning,Real Party to Interest E c a� E Q By: Wilma Henning U c Dated: 12016 Bert W.Dodd,Jr.,heal Party In Interest p Y �y(D ti CD By: Bert W.Dodd,Jr. o 0 N O f� �1 APPROVED AS TO FORM AND CONTENT: c m E Law Office of Anthony C.Rodriguez Cn m Dated: �1 ,2016 Q By: Anthony C.Rodriguez, Fsq. Attorney for Glen Aire Mobilehome Park Corporation, 0 Pacific Palms Mobilehome Park Corporation, Friendly Village Mobilehome Park Corporation, Orangewood Mobilehome Park Corporation and the Affordable Community Living Corporation a Page 14 of I5 0 Packet Pg. 751 • Dated: ,2016 Randall Samford, Real Party in Interest By: Randall Samford CD °l 1 Dated: ,2016 Wilma Henning,Real Party in Interest E E a By: Wilma Henning c L Dated: , 2016 Bert W. Dodd,Jr.,Real Party in Interest c a� o: E 0 By:Bert W. Dodd,Jr. _ 0 N O h d• C d APPROVED AS TO FORM AND CONTENT: E a� Cn Law Office of Anthony C. Rodriguez Q c A) 0 Dated: ,2016 u c By: Anthony C. Rodriguez, Esq. E Attorney for Glen Aire Mobilehome Park Corporation, Pacific Palms Mobilehome Park Corporation, Friendly Village Mobilehome Park Corporation, Orangewood a Mobilehome Park Corporation and the Affordable Community Living Corporation Page 14 of 15 Packet Pg.752 7.A.b Dated: , 2016 Randall Samford,Real Party in Interest By_ Randall Samford a:. e Dated: , 2016 Wilma Henning, Real Party in Interest E c a� E Q a� By: Wilma Henning c i O Dated: wr+tsr D� , 2016 Bert W. Dodd, Jr.,Real Party in Interest � (D D: (D E 0 By. Bert W. Dodd, Jr. 0 N O ti ,d. C APPROVED AS TO FORM AND CONTENT: E d r N Cn d Law Oftice of Anthony C. Rodriguez Q Dated: ' 2016 By: Anthony C.Rodriguez, Esq. °' E Attorney for Glen Aire Mobilehome Park Corporation, Pacific Palms Mobilehome Park Corporation, Friendly V Village Mobilehome Park Corporation, Orangewood Q Mobilehome Park Corporation and the Affordable Community Living Corporation Page 14 of 15 l Packet Pg. 753 fi City Attorney,City of San Bernardino Dated: , 2016 By: Gary D. Saenz, Esq. Attorney for the City of San Bernardino,the City of San Bernardino Mobile Home Rent Board, and the City of c San Bernardino Acting as the Successor Agency to the E Redevelopment Agency of the City of San Bernardino c 0 (named as the City of San Bernardino Economic E Development Agency) < CD U C Rf C Allen, Semelsberger & Kaelen,LLP O c a� Dated: , 2016 By: Henry E. Heater,Esq. E 0 Attorney for the City of San Bernardino,the City of San = m Bernardino Mobilc Home Rent Board, and the City of s San Bernardino Acting as the Successor Agency to the 0 Redevelopment Agency of the City of San Bernardino (named as the City of San Bernardino Economic �o Development Agency) C m E UC Irvine School of Law,Community and Economic {, Development Clinic N m a L Dated: $ 2 ," ,2016 0 W By Carrie el, Esq. O Attorney for Real Parties in Interest Randall Samfo , c Wilma Henning and Bert W. Dodd,Jr. E U r Q Page 15 of 15 Packet'Pg.754 City Attorney, City of San Bernardino Dated: OC106V % , 2016 Otorney D. S ae z, E for the City of San Bernardino, the City of San Bernardino Mobile Home Rent Board, and the City of San Bernardino Acting as the Successor Agency to the Redevelopment Agency of the City of San Bernardino a=i (named as the City of San Bernardino Economic Development Agency) E Q _ Allen, Seinelsberger & Kaelen, LLP c �a i 0 _ Dated: --_ __—, 2016 —__--- _- By: Henry E. Heater, Esq. (' E Attorney for the City of San Bernardino, the City of San = Bernardino Mobile Home Rent Board, and the City of San Bernardino Acting as the Successor Agency to the 0 Redevelopment Agency of the City of San Bernardino (named as the City of San Bernardino Economic Development Agency) o' _ Q E m UC Irvine School of Law, Community and Economic Development Clinic 0) CD m a _ Dated:-------_— 2016 ----`_____— -------------_ _— 0 By: Carrie Hempel, Esq. _ Attorney for Real Parties in Interest Randall Samford, E Wilma Henning and Bert W. Dodd, Jr. U N Y .F Q Page 15 of 15 Packet Pg. 755 City Attorney,City of San.Bernardino Dated: ,2016 By; Gary D. ,Saenz, Esq. Attorney for the City of San Bernardino,the City of San Bernardino Mobile Home Rent Hoard, and the City of CD San Bernardino Acting as the Successor Agency to the E Redevelopment Agency of the City of San Bernardino (named as the City of San Bernardino Economic E Development Agency) a CD U c tQ C Allen,Secnelsberger &Knelen,LLP 0 w c Dated, /r.��_,201 fi By: Henry E.Neater,Esc}. o Attorney for the City of San.Bernardino,the City of San = as Bernardino Mobile Hoene Rent Board, and the City of IF I San Bernardino Acting as the Successor Agency to the 0 Redevelopment Agency of the City of San Bernardino N (named as the City of San: Bernardino Economic Development Agency) �! c Q E a� UC Irvine School of Law,Community and Economic Development Clinic a� a Dated: 2016 aci By: Carrie Hempel,Esq. Attorney for heal Parties in Interest Randall Samford, Wilma Henning and Bert W, Dodd,Jr. E s U a Page 15 of 15 Packet Pg.756 EXHIBIT A PROPOSED AMENDMENTS [Proposed changes are in bold italics] 8.090.050 Exemptions from coverage. The provisions of this Ordinance shall not apply to the following: c A. New Space or First Time Space Exemption - Space rent or space rent adjustments for c new mobile home spaces first rented after the effective date of this Chapter shall be exempt from the provisions of the Chapter to the extent that those rents would have Q been controlled had the spaces been previously occupied. There shall be no c prospective exemption in such circumstances, however, as to rents that may be = adjusted annually under this Chapter after a space is first rented. In such cases, the base date for purposes of determining permissible future rent adjustments shall be the date of first rental or conveyance. m E B. Vacancies o m I. If the mobile home space is voluntarily vacated by the tenant, or vacated o pursuant to California Civil Code Section 798.56, the landlord may adjust the rental rate to any amount as provided in Subsection A of this Section 8.90.050. o ti v 2. c E to the new orvizei by the amourit which woutd have been allvwedpuisuant to this Chapter if the mobiie honte had trot been s a� r If the mobile home is in sold and is to remain on site,the landlord may increase the rental rate for the new resident by an amount not to exceed ten percent (10%) of the then existing rent. Any rent increase pursuant to this Subsection B2 shall be implemented at the time the new resident first occupies the space and/or first enters into a rental agreement with the landlord. E 3. a The implementation of any rent increase allowed under this Subsection B shall not change the anniversary date for the annual permissive inflationary adjustment to rent allowed under Section 9.90300A of this Chapter. Page 1 of 4 Packet Pg.757 7.A.b 4. A vacancy is voluntary if the tenant voluntarily and without coercion by the landlord vacates the rental space or,if the tenant dies and there is no surviving cohabitant. 5. are-applivable in the new irizatz Where the rent is increased pursuant to this Subsection B, the landlord shall, at the time the rent increase is E implemented,provide the new tenant with written notice of theprevious base d rent for the space, the new base rent for the space in both dollar and E a percentage terms, and the anniversary date for the space for purposes of the m annual permissive inflationary adjustment to rent allowed under Section 9.90300A of this Chapter. 0 6. The rent increases allowed under this Subsection B shall be in addition to m any other rent increases authorized by this Chapter,including but not limited to the annual permissive inflationary adjustment to rent allowed under o Section 9.90300A of this Chapter. _ 7. Notwithstanding anything herein to the contrary, nothing in this Chapter g° shall preclude any landlord from implementing any rent increases that are exempt under the provisions of the California Mobilehonre Residency Law, including any rent increases that are exempt under Civil Code Sections 798.17, 798.41 and/or 798.49. E d w a� L a V dd E V a Page 2 of 4 1 Packet Pg. 758 1 7.A.b PROPOSED AMENDMENTS [Final Form/Without Bold Italics] 8.090.050 Exemptions from coverage. The provisions of this Ordinance shall not apply to the following: A. New Space or First Time Space Exemption - Space rent or space rent adjustments for new mobile home spaces first rented after the effective date of this Chapter shall be exempt from the provisions of the Chapter to the extent that those rents would have been controlled had the spaces been previously occupied. There shall be no prospective exemption in such circumstances, however, as to rents that may be Q adjusted annually under this Chapter after a space is first rented. In such cases, the base date for purposes of determining permissible future rent adjustments shall be the date of first rental or conveyance. O .r B. Vacancies _ m (D 1. If the mobile home space is voluntarily vacated by the tenant, or vacated pursuant to California Civil Code Section 798.56,the landlord may adjust the a� rental rate to any amount as provided in Subsection A of this Section 8.90.050. o 2. If the mobile home is sold and is to remain on site, the landlord may increase c the rental rate for the new resident by an amount not to exceed ten percent (10%)of the then existing rent. Any rent increase pursuant to this Subsection B2 shall be implemented at the time the new resident first occupies the space E and/or first enters into a rental agreement with the landlord. a� Cn 3. The implementation of any rent increase allowed under this Subsection B shall °' not change the anniversary date for the annual permissive inflationary adjustment to rent allowed under Section 9.90.100A of this Chapter. 0 4. A vacancy is voluntary if the tenant voluntarily and without coercion by the d E landlord vacates the rental space or, if the tenant dies and there is no surviving U cohabitant. a 5. Where the rent is increased pursuant to this Subsection B, the landlord shall, at the time the rent increase is implemented, provide the new tenant with written notice of the previous base rent for the space,the new base rent for the space in both dollar and percentage terms, and the anniversary date for the Page 3 of 4 Packet Pg. 759 7.A.b space for purposes of the annual permissive inflationary adjustment to rent allowed under Section 9.90.100A of this Chapter. 6. The rent increases allowed under this Subsection B shall be in addition to any other rent increases authorized by this Chapter,including but not limited to the annual permissive inflationary adjustment to rent allowed under Section 9.90.100A of this Chapter. 7. Notwithstanding anything herein to the contrary,nothing in this Chapter shall preclude any landlord from implementing any rent increases that are exempt under the provisions of the California Mobilehome Residency Law, including any rent increases that are exempt under Civil Code Sections 798.17, 798.41 Q and/or 798.49. c �o E 0 d oc E 0 x 0 N O I,- d. Y C d E N Y fn �g; d Y V ��I Y C E U R Y Y d Page 4 of 4 Packet Pg. 760 TA.b 1 ANTHONY C. RODRIGUEZ State Bar No. 122479 LAW OFFICE OF ANTHONY C. RODRIGUEZ 2 1425 LEIMERT BOULEVARD, SUITE 101 OAKLAND,CALIFORNIA 94602 3 Telephone: (510) 336-1536 Facsimile: (510) 336-1537 4 Email: arodesq @pacbell.net 5 Attorney for Petitioners Glen Aire Mobilehome Park 6 Corporation, Pacific Palms Mobilehome Park Corporation, Friendly Village Mobilehome Park Corporation, 7 Orangewood Mobilehome Park Corporation and -Ea California Mobilehome Park Corporation $ °' E a 9 SUPERIOR COURT OF THE STATE OF CALIFORNIA 10 COUNTY OF SAN BERNARDINO c L Glen Aire Mobilehome Park } Case No. CIVDS 1114110 Corporation,Pacific Palms 1 ) .$ Mobilehome Park Corporation, ) ° 13 Friendly Village Mobilehome Park } JUDGMENT BY STIPULATION E Corporation, Orangewood } PURSUANT TO CODE OF CIVIL ° 14 Mobilehome Park Corporation and ) PROCEDURE SECTION 664.6 California Mobilehome Park ) B Corporation, } ° 15 2 "UNLIMITED JURISDICTION" 16 ) c•, Petitioners, 2 17 DESIGNATION PER LOCAL vs. RULE 404: CIVIL ACTION/SAN c 18 ) BERNARDINO DISTRICT The City of San Bernardino,the City of ) 19 San Bernardino Mobile Home Rent Board, } the City of San Bernardino Economic } ASSIGNED FOR ALL PURPOSES Cn 20 Development Agency,the City of } TO THE HONORABLE DAVID S. L San Bernardino Hearing Officer, Donald ) COHN/DEPARTMENT S37 a 21 P. Cole and Does 1-50, } 22 Respondents, ) E 23 The Tenants Residing at Glen Aire ) 24 Mobilehome Park, Pacific Palms Q Mobilehome Park, Friendly Village ) 25 Mobilehome Park, Orangewood ) Mobilehome Park and Does 51-1,000, ) 26 ) 27 Real Parties In Interest. 28 JUDGMENT BY STIPULATION PURSUANT TO CODE OF CIVIL PROCEDURE SECTION 664.6 Case No. CIVDS1114110 - 1 - Packet Pg. 761 1 PARTIES 2 This Judgment by Stipulation is entered into by and between Glen Aire Mobilehome 3 Park Corporation, Pacific Palms Mobilehome Park Corporation, Friendly Village 4 Mobilehome Park Corporation, Orangewood Mobilehome Park Corporation and the 5 Affordable Community Living Corporation' (collectively referred to as the "Non-Profit 6 Corporations")on the one hand,and the City of Sail Bernardino,the City of San Bernardino c 7 Mobile Home Rent Board,and the City of San Bernardino Acting as the Successor Agency E _ 8 to the Redevelopment Agency of the City of San Bernardino (named in these proceedings E a 9 as the City of San Bernardino Economic Development Agency) (collectively referred to as 10 "the City"), on the other hand. Real Parties in Interest Deanna Ditto,Randall Samford, c L 11 Wilma Henning and Bert W. Dodd, Jr., are also signatories to this Judgment by O _ 12 Stipulation. W 0) 13 STIPULATION E 0 x 14 A. In or about June of 2016 the parties to this Stipulated Judgment entered into 15 a Contingent Settlement Agreement and Release of Claims. A true and correct copy of that 2 16 Contingent Settlement Agreement and Release of Claims is attached hereto as—Exhibit I and v 17 incorporated herein by this reference. _ 18 B. The contingencies set forth in the Contingent Settlement Agreement and E 19 Release of Claims have since been satisfied and/or waived. All real parties in interest have a� 20 been dismissed without prejudice, with the exception of Deanna Ditto,Randall Samford, Q _ 21 Wilma Henning and Bert W. Dodd, Jr. Therefore, the only remaining parties to these 22 proceedings are the parties to this Stipulated Judgment. c a� 23 C. The Non-Profit Corporations have agreed to accept the rent increases �o 24 previously awarded by the Board, effective June 1, 2012, in the following amounts: L 25 26 ' 27 The Affordable Community Living Corporation was formerly known as the California 28 Mobilehome Corporation and the San Bernardino Mobilehome Park Corporation. JUDGMENT BY STIPULATION PURSUANT TO CODE OF CIVIL PROCEDURE SECTION 664.6 Case No. CIVDS1114110 - 2 - Packet Pg. 762 7.A.b 1 2 Park: Rent Increases Effective June 1, 2012 3 Glen Aire: $32.65 per space per month 4 Pacific Palms: $36.00 per space per month 5 Orangewood: $47.90 per space per month 6 Hillside Estates: $33.90 per space per month c m 7 As a result,the parties to this Stipulated Judgment agree that there is no need to remand these c 8 proceedings to the Board for clarification of its decision. E a 9 D. Accordingly,pursuant to paragraph 9 and other provisions of the Contingent v c 10 Settlement Agreement and Release of Claims,the parties to this Stipulated Judgment hereby L 11 agree that the Court may vacate its October 7, 2014 remand order, enter judgment as set c a� 12 forth below and dismiss these proceedings with prejudice, with the court retaining aD 13 jurisdiction to enforce the terms of the Contingent Settlement Agreement and Release of 14 °—' Claims,pursuant to Code of Civil Procedure Section 664.6. 0 v. 15 E. The parties to this Stipulated Judgment specifically request the Court to N 16 retain jurisdiction to enforce the terms of the Settlement Agreement and Release of v 17 Claims,pursuant to Code of Civil Procedure Section 664.6. a� 18 IT IS SO AGREED AND STIPULATED: r 19 in Glen Aire Mobilehome Park Corporation 20 a c 21 Dated: 52016 C9 22 By: Dennis Kazarian, it's President m E 23 Pacific Palms Mobilehome Park Corporation U �a 24 < Dated: 32016 25 By: Dennis Kazarian, it's President 26 27 28 JUDGMENT BY STIPULATION PURSUANT TO CODE OF CIVIL PROCEDURE SECTION 664.6 Case No. CIVDS1114110 -3 - Packet Pg.763 7.A.b I Friendly Village Mobilehome Park Corporation 2 Dated: , 2016 3 By: Dennis Kazarian, it's President 4 Orangewood Mobilehome Park Corporation 5 6 Dated: 2016 By: Dennis Kazarian, it's President Q 7 -Ea c CD 8 Affordable Community Living Corporation E Q 9 Dated: , 2016 10 By: Dennis Kazarian, it's President L 11 O The City of San Bernardino,the City of San 12 Bernardino Mobile Home Rent Board, and the City of San Bernardino Acting as the Successor Agency 13 to the Redevelopment Agency of the City of San o Bernardino (named as the City of Sara Bernardino _ 14 Economic Development Agency) :n 0 15 Dated: ,2016 N 16 By: City Manager, City of San Bernardino v 17 Deanna Ditto,Real Party in Interest 18 d 19 Dated: 22016 By: Deanna Ditto d 20 a c 21 Dated: , 2016 Randall Safnford,Real Party in Interest 22 c a� 23 By:Randall Samford 24 a Dated. , 2016 Wilma Henning, Real Party in Interest 25 26 By: Wilma Henning 27 1 28 JUDGMENT BY STIPULATION PURSUANT TO CODE OF CIVIL PROCEDURE SECTION 664.6 Case No. CIVDS1114110 1 -4 - Packet Pg.764 i 7.A.b I Dated. , 2016 Bert W. Dodd, Jr., Real Party in Interest 2 3 By: Bert W.Dodd,Jt. 4 APPROVED AS TO NORM AND CONTENT: 5 Law Office of Anthony C. Rodriguez 6 �. c d 7 Dated: 12016 E By: Anthony C. Rodriguez, Esq. c 8 Attorney for the Non-Profit Corporations Q E a 9 10 City Attorney, City of San Bernardino c L 11 0 Dated: 12016 12 By: Gary D. Saenz, Esq. W Attorney for the City of San Bernardino,the City of E 13 San Bernardino Mobile Home Rent Board, and the o City of San Bernardino Acting as the Successor = 14 Agency to the Redevelopment Agency of the City of San Bernardino (named as the City of San o 15 Bernardino Economic Development Agency) N 16 �r 17 Allen, Semelsberger&Kaelen, LLP c a) 18 E Dated: 12016 19 By: Henry E. Heater, Esq. ch Attorney for the City of San Bernardino, the City of L 20 San Bernardino Mobile Home Rent Board, and the a City of San Bernardino Acting as the Successor 21 Agency to the Redevelopment Agency of the City of San Bernardino (named as the City of San 22 Bernardino Economic Development Agency) E 23 UC Irvine School of Law, Community and 24 Economic Development Clinic a 25 Dated. , 2016 26 By: Carrie Hempel,Esq. Attorney for Real Parties in Interest Randall 27 Samford, Wilma Henning and Bert W. Dodd,Jr. 28 JUDGMENT BY STIPULATION PURSUANT TO CODE OF CIVIL PROCEDURE SECTION 664.6 Case No. CIVDS 1 1 14110 - 5 - Packet Pg. 765 7.A.b I JUDGMENT 2 Good cause appearing,the Court hereby accepts the stipulation of the parties. As the 3 Non-Profit Corporations have agreed to accept the rent increases previously awarded by the 4 Board, there is no need to remand these proceedings to the Board for clarification of its 5 December 14, 2011 decision. Accordingly, the Court's October 7, 2014 remand order is 6 vacated and these proceedings are hereby dismissed with prejudice. Pursuant to the request _ 7 of the parties to this Stipulated Judgment,the Court shall retain jurisdiction to enforce the E E c 8 terms of the Contingent Settlement Agreement and Release of Claims,pursuant to Code of E 9 Civil Procedure Section 664.6. Pursuant to the terms of the Contingent Settlement 10 Agreement and Release of Claims,the parties shall bear their own attorneys fees and costs = `a L 1 I with respect to these proceedings. 0 w 12 IT IS SO ORDERED, ADJUDGED AND DECREED: a� 13 0 x 14 Dated: , 2016 T Judge of the San Bernardino County Superior M 15 Court N 16 d' 17 _ 18 E 19 in d L 20 a 21 22 E 23 m 24 a 25 26 27 28 JUDGMENT BY STIPULATION PURSUANT TO CODE OF CIVIL PROCEDURE SECTION 664.6 Case No. CIVDS 1114110 - 6- Packet Pg.766