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Mr. Goldberg expanded upon the concept of Annual General Adjustment (AGA) recommending that with the "ordinance in its present form, the allowable AGA be no more than 70% of the consumer price index, not to exceed 7% as an AGA", which "should maintain affordability for current tenants", and "maintain the growth of net operating income (NOI) as a proxy for a fair and reasonable return." Mr. Goldberg described Hall v. Santa Barbara, Yee v. Escondido, Sandpiper Mobile Village v. City of Carpinteria, Palos Verdes Shores Mobile Home Estates Ltd. v. City of Los Angeles, Cotati Alliance for Better Housing v. City of Cotati, Fox v. San Francisco Residential Rent etc. Board, Whispering Pines Mobile Home Park Ltd. v. City of Scotts Valley, Vega v. City of West Hollywood and Carson Mobilehome Park Owners Association v. City of Carson, and advised "the proposed ordinance for the City of Redwood City will not create any legal problems upon adoption." Mr. Goldberg described base rent date, vacancy decontrol upon sale, pass-throughs and amortization. In response to Council questions, Mr. Goldberg replied he had not received rent history information from the Park owners, the suggested survey questions had not been put in formal survey form, 50% of current rent control ordinances permit vacancy decontrol, described capital improvements and capital replacement, and agreed the tax code definition could be used in the ordinance. In response to Councilman Greenalch's questions, Mr. Goldberg described the inelasticity of the mobile home situation, advised that a "fair return" has been defined as a maintenance of growth of NOI, and described other available indices. ------------------------------------------------------------------------------- Mayor Buchan declared a recess at 9:16 p.m. Meeting reconvened at 9:27 p.m. ------------------------------------------------------------------------------- Mayor Buchan invited anyone who wished to speak to please do so. The following people addressed the Council: Carol Bangert, 3015 E. Bayshore, Redwood City, asked for clarification of vacancy decontrol upon sale, and Mr. Goldberg added "from base rent period to day coach is sold." Marie Rickes, 3015 E. Bayshore, Redwood City, asked why Park owners had not provided information requested by Council on October 26, 1992, and asked that references to apartments be eliminated and only mobile home living be referenced. Mr. Deffebach, representing Mobile Home Park Owners, in response to Mrs. Rickes questions stated the owners needed more time, and asked for a delay to December 21st or the beginning of January in order to hire an economist. Regular Meeting Minutes MINUTE BOOK NO. 51 November 23, 1992 Page No. 252 Page 6