Minutes 78-03-20MINUTES OF A SPECIAL MEETING
OF THE CYPRESS CITY COUNCIL
HELD
March 20, 1978
The Special Meeting of the Cypress City Council was called to order at
7:35 p.m., on Monday, March 20, 1978, in the Administrative Conference
Room of the Cypress City Hall, 5275 Orange Avenue, Cypress, California,
with Mayor Donald Hudson presiding.
PRESENT:
ABSENT:
Council Members Evans, Lacayo, MacLain, Rowan and Hudson
None
Also [resent were Darrell Essex, City Manager/City Clerk, Elizabeth Strauss,
C~tv Attom~ey, and the following City staff members: Bryant, Davenport,
Duke, Hawley, Powell, Satterfield and Schatzeder.
CONTINUATION OF CONSIDERATION OF COMMUNICATION IN REFERENCE TO LINCOLN
CENTER MOBILE HOME PARK: The City Council read a report from the Planning
D~rector dated March 20, which transmitted a copy of Planning Commission
Resolution #334, which contains the conditions of Conditional Use Permit
#C-Ig>' for Lincoln Center Mobile Home Park, a copy of the agreement bet-
ween the Seal Beach Redevelopment Agency and Seal Beach Association (the
redew.]opment corporation) relating to the construction and maintenance
o~ mobile bome parks and townhouses for low and moderate income families,
and a ~opy of Ordinance No. 961 of the City of Vacaville, California,
which establishes a Mobile Home Rent Review Commission which, among other
functions, determines rental rates within the City's mobile home parks.
The Planning Director reported Oxnard and Escondido did not adopt rent
control ordinances because of administration problems since there is
n~ st~te legislation,which would allow cities to obtain ~inancial records
from mobile home park owners. He stated the Seal Beach agreement has
no application in Cypress since it involves mobile home parks within
a red~.w~lopment area. He reported the Vacaville Ordinance is being
c[~a[]~.nged. The Planning Director reported he inspected the Lincoln
C~nter Park to investigate the complaints made at the March 13 Council
meeti~g. He reported he found no extensive damage, serious faults or
evldei/ce of the charges brought up by the residents, He requested further
time ~o compile the information requested by the Council and asked for
direction on the survey of the mobile home park.
Councilman Lacayo inquired whether conditions controlling rent increases
could b~ attached to the use permit at this time. The City Attorney
stated she preferred such controls to be included in an ordinance since
the o~iective of conditional use permit conditions is primarily to ensure
a compatible use of land.
Councilwoman Evans recommended that a committee composed of staff members
and mobile home park residents be formed to investigate the problems and
make recommendations to the Council to determine whether review of the
Conditional Use Permit is necessary. Councilmen Lacayo and Hudson agreed
with the committee approach and Councilman Lacayo suggested that the findings
of th~, committee be discussed in a work session with the Counnil, tenants
and park owner, before the Council takes action. Mayor Hudson pointed out
that the problems at Lincoln Center, excluding the rent increases, were
addressed two years ago and a method was needed to arrive at an equitable
solutiou for everyone to avoid the Council's review process each time a
rent increase is proposed. He discussed with the City Attorney the
enactment of an ordinance,which provides rent control.
Councilman Rowan requested that staff identify the valid complaints and
present the Council and park owner with a list of deficiencies. He re-
quest~'d recommendations on maintenance standards, which could be applied.
City Council Minutes
March 20, 1978
He requested materials from other cities regarding rent control and stated
he would prefer a lease agreement to be worked out in lieu of adopting
a rent control ordinance. Councilwoman MacLain inquired about the assess-
ment of the mobile home park. The Planning Director stated the mobile
home park is assessed as a commercial use. Councilwoman MacLain stated
she had concerns with considering a mobile home park as a commercial use
and felt the Council should support legislation dealing with a refund
of in lieu fees on mobile homes. Mayor Hudson requested that staff
examine the complaints so that the Council may determine whether a review
of the Use Permit conditions is necessary and that staff present the
Council with information regarding the local, county and state assessment
practices for mobile home parks, information regarding the degree of
mobile home park shortage which exists, information on taxes paid by
the park owner and tenants, and information on AB 450 with a legal opinion
from the City Attorney. He requested that the City Manager send a letter
to the Lincoln Center tenants advising them of the Council's proposed action.
Councilman Lacayo requested information from the tenants regarding examples
of excessive rent increases and financial information from the park owner
on which the rent increases are based. Councilwoman Evans felt the tenants
should be questioned as to what they consider to be fair rents, whether
they would favor a lease agreement, and whether they are aware of taxes
paid on the property. She favored a survey of the entire park. Council-
man Lacayo suggested that the survey follow the work session. Councilman
Rowan requested a copy of the lease offered at the park. Mayor Hudson
indicated the investigation of air space condominium costs was premature
at this time.
The Planning Director stated that park tenants who are on fixed incomes
may be eligible for rent subsidies through the Orange County Housing
Authority. The City Attorney advised that AB 450's passage would curtail
the City's ability to enact a rent control ordinance and she suggested
that the Council consider taking a stand on the Bill.
Representatives of the ~bile Park invited staff to contact them and they
stated they would cooperate in providing information.
RECESS: Mayor Hudson called a recess at 9:10 p.m. The meeting was called
back to order at 9:25 p.m. with all Council members present.
BUDGET WORK SESSION: The City Manager distributed information regarding
the preliminary projection of the City's year end fund balance which
was estimated to be $600,000, with $750,000 estimated in sales tax
reserve. Also included was information on alternative revenue sources
and expenditure alternatives available to the City based on passage of
the Jarvis Amendment. Staff responded to questions from the Council on
the material.
The Council held discussion regarding Councilwoman Evans' property tax
refund proposal. Councilwoman Evans stated that when she became aware
of the possible reserve of $750,000, she felt a responsibility to lower
taxes by rebating the unbudgeted funds to property taxpayers. She re-
quested that the Council address its future policy on these funds.
The City Manager stated the problem involved the security of this revenue
source and how much of a reserve the Council wishes to maintain. He
stated a refund of the sales tax reserve would affect the City's investment
programs and probably involve the payment of penalties for withdrawal of
invested funds. He reported that the excess reserve funds may be required
to fund the public improvements for the industrial/commercial development
proposed in the south part of the City since the staff questioned whether
the City would qualify for Federally funded programs because of changes
in Federal priorities.
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City Council Minutes
March 20, 1978
Councilwoman Evans stated the Council should determine the policy
on use of the funds when they become available to the City. Mayor
Hudson stated it appeared that Councilwoman Evans' concern was whether
the Council has the intent of relieving property taxes. He pointed out
that over the last three years the Council has reduced the tax rate.
Mayor Hudson suggested that a citizens' cormnittee be formed to study the
impact of Proposition 13 and to make recommendations for budget reductions.
He stated the committee should have diverse representation from all seg-
ments of the community and he suggested that members be considered at
the March 27 meeting. Councilman Lacayo suggested that a public hearing
be held in order for the public to give input on what areas of the budget
should be reduced and to make recommendations on replacement revenue sources
if the Jarvis Amendment passes.
Councilwoman Evans asked if staff needed policy direction on the unbudgeted
sales tax revenue. The City Manager stated there would be no problem
if the funds are left as a reserve.
Mayor Hudson requested that the Council members make recommendations to
staff on membership of the citizens' committee on Proposition 13.
The Council decided that they would review the preliminary department
budgets,including the City Manager's adjustments and then review the
entire document at following budget meetings.
The City Attorney suggested that the Council should adopt alternative
revenue sources,if desired,by the first May Council meeting to avoid conflict
with Proposition 13.
EXECUTIVE SESSION: Mayor Hudson called an Executive Session at 11:15 p.m.
for matters of personnel. The meeting was called back to order at 12:15 a.m.
with all Council members present.
ADJOURNMENT: It was moved by Councilman Lacayo, seconded by Councilman
Rowan and unanimously carried to adjourn the meeting at 12:16 a.m.
ATTEST:
MAYOR OF T ITY OF CYPRESS
CITY CLERK OF TH~ CITY OF
CYPRESS
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