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CC Resolution 13165 - Mobile Home Rent Stabilization Tri-Partite Agreement • RESOLUTION NO.13165 BEING A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CAMPBELL APPROVING AND AUTHORIZING THE CITY MANAGER TO EXECUTE A TRI-PARTITE RENT STABILIZATION AGREEMENT WITH TIMBER COVE MOBILE HOMEMOWNER'S ASSOCIATION, TIMBER COVE JOINT VENTURE DBA TIMBER COVE MOBILEHOME COMMUNITY, AND THE CITY OF CAMPBELL. WHEREAS, the City of Campbell since 1993 has provided Timber Cove Mobile Homeowner's Association members and parks owners, Timber Cover Joint Venture dba Timber Cove Mobilehome Community, with conciliation and mediation for proposed rent increases; and WHEREAS, the mobile homeowners, park management, and the City of • Campbell have signed a five-year Tri-Partite Rent Stabilization Agreement every five years for the last 30 years; and WHEREAS, the current Tri-Partite Agreement expired January 31, 2024; and WHEREAS, the mobile homeowners and park managers have agreed on a ten year term and desire to sign a new ten-year agreement. • WHEREAS, the City's participation in the Tri-partite agreement does not establish local rent control. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Campbell, California, that the Council does approve a new Tri-Partite, Rent Stabilization Agreement with.Timber Cove Mobile Homeowner's Association and Timber Cover Joint Venture dba Timber Cove Mobile Home Community, and authorizes the City Manager to execute the attached agreement. PASSED AND ADOPTED this 4th day of June, 2024, by the following roll call vote: AYES: Councilmembers: Bybee, Furtado, Scozzola, Lopez, Landry NOES: Councilmembers: None ABSTAINED: Councilmembers:. None ABSENT: ' Councilmembers: None APPROVED; J M H Susan M. Landry, ayor ATTEST: Andrea Sander City Clerk DocuSign Envelope ID: 115A6A88-C40C-4DED-9D33-A8CB8AFF265A • TIM ER COVE MOBILEHOME COMMUNITY RENT STABILIZATION AGREEMENT Agreement dated this d ay of February 1, 2024, ("Effective Date") by and between TIMBER COVE MOBILEHOME COMMUNITY ,l 0.1N T VENTURE doing business as TIMBER COVE MOBILEHOME COMMUNITY, hereinafter referred to as "Management", "Timber Cove Mobilehome Community" or"Community", the CITY OF CAMPBELL, a Municipal Corporation, hereinafter referred to as "City", and the TIMBER COVE HOMEOWNERS ASSOCIATION, on behalf of all mobilehome owners at Timber Cove Mobilehome Community, hereinafter referred to as "Homeowners", and collectively referred to as `Parties". 1. • PURPOSE: The purpose of this Agreement is to resolve the issue of increases in rent and certain other charges at Timber Cove Mobilehome Community located at 870 Camden Avenue in the City of Campbell in the years set forth herein. This is a tripartite Agreement between Management. the Homeowners of Timber Cove Mobilehome Community through their designated representative, the Timber Cove Homeowners Association, and the City. This Agreement is the result of negotiations between the Homeowners and Management as defined below, with the assistance of the City. 2. DEFINITIONS: A. "Management": Timber Cove Mobilehome Community Joint Venture doing business • as Timber Cove Mobilehome Community or its designated representative(s). • B. . "Community": Community is the Timber Cove Mobilehome Community located at 870 Camden Avenue, Campbell, Santa Clara County, California 95008. C. "Homeowner": The person(s) who owns a mobilehome and holds a tenancy for a mobilehome Lot, as defined below, at Timber Cove Mobilehome Community under a fully executed Rental Agreement with the Community. D. "Timber Cove Mobilehome Homeowners Association": The Timber Cove Mobilehome Homeowners Association, ("Association") is a nonprofit organization whose sole purpose is to preserve and improve the quality of life for homeowners members are Homeowners of Timber Cove Mobilehome Community. The powers of the Association are exercised by an elected Board of Directors, which supervises the activities and affairs of the Association. E. "City"The City of Campbell. F. "Bureau": The Federal Bureau of Labor Statistics or any successor agency that issues • or will issue the indices or data referred to in Subsection G,below. G. "Price Index": Consumer Price Index ("CPI") for all Urban Consumers, San Francisco/Oakland/Hayward, published by the Bureau, or any other measure subsequently employed by the Bureau in lieu of such price index, that measures the cost of living locally. The annual percentage increase in the Price Index shall be computed from August to August of each year during the term of this Agreement. In the DocuSign Envelope ID: 115A6A88-C40C-4DED-9D33-A8CB8AFF265A • event the foregoing cost of living index is discontinued or revised, another governmental index subsequently employed by the Bureau of Labor Statistics in lieu of such price index • that measures the cost of living locally shall be selected by Management and used to obtain substantially the same result as if the foregoing index had not been discontinued or revised. Civil Code Section 798.30,a provision of the California Mobilehome Residency Law,provides that Management shall give a Homeowner at least ninety(90)days written notice of any increase in his or her rent. In the event that during the term of this Agreement that provision of the Civil Code, or any other relevant provision should be amended to require a longer period of written notice of Base Rent (defined below) increase to Homeowner, then the appropriate twelve (12) month calculation period will be used so that calculation of the annual Base Rent increases pursuant to Section 4 can be made. H. "Base Rent": Base Rent is the monthly rent for the mobilehome Lot (as defined below) in U.S. Dollars payable by the Homeowner,plus any increase in Base Rent as provided for in this Agreement. Base Rent excludes all other separately itemized charges such as utilities. I. "Additional Rent": Additional Rent is the monthly amount demanded or received in U.S. Dollars in connection with separately itemized charges provided for in this Agreement and the Homeowner's Rental Agreement, including but not limited to increases pursuant to Section 4,Annual Base Rent Increases,and Section 5,Additional Base Rent Increases. J. "Monthly Rent": Monthly Rent is the sum of Base Rent and Additional Rent. K. "Lot": Lot means the real property that is the mobilehome Lot which the Tenant rents from the Landlord. It includes the entire area from curb, including side curb, to rear Lot line and side Lot lines; including the driveway, yards, fencing, patios, trees, landscaping and the area upon which Tenant's mobilehome is located. L. "Mobilehome": Mobilehome means the mobilehome or manufactured home in which the Homeowner resides at Timber Cove Mobilehome Community, and as defined in Civil Code Section 798.3,herein referred to as mobilehome. M. "Mobilehome Residency Law": As used herein, the term "Mobilehome Residency Law" refers to those provisions of the California Civil Code beginning at Civil Code Section 798, and any future changes to the Mobilehome Residency Law. The Mobilehome Residency Law may also be referred to as the "MRL." N. "Government Required Capital Improvements": An addition or improvement to the Timber Cove Mobilehome Community, or assessment against the Community, including a substantial rehabilitation or replacement of an existing capital improvement in the Community required or mandated by any governmental body or agency, including but not limited to, the City of Campbell, the County of Santa Clara, the State of California, or the United States of America. O. "Emergency or Disaster Related Occurrence or Event": A sudden event resulting from earthquake,fire,flood,or other natural occurrence,or a major malfunction of any of the Timber Cove Mobilehome Community's underground utilities or sewer systems, over which Management has no reasonable control, and which was not caused by 2 DocuSign Envelope ID: 115A6A88-C40C-4DED-9D33-A8CB8AFF265A Management's willful misconduct or gross negligence. This definition is intended to be illustrative and not exclusive. P. "Prime Interest Rate": shall mean two hundred(200) basis points above the "Prime Rate" charged by Bank of America, NT & SA to its most credit worthy borrowers, if the "Prime Rate",charged by Bank of America NT & SA should cease to be available through any reasonable means, then "Prime Interest Rate" shall include the "Prime Rate" of an alternative major financial institution selected by Management. Q. "Property Tax": includes all general and special real estate taxes and personal property taxes. Property taxes also include any tax or excise on rents or any other tax, however described, which is levied or assessed against the Community as a direct substitution in whole or in part, for any real property taxes. 3. TERM: The term of this Agreement shall commence on February 1,2024 and terminate at midnight on January 31, 2034. 4. ANNUAL BASE RENT INCREASES: Base rent on all mobilehome lots shall be increased by the greater of three percent(3%)or seventy-five percent(75%) of the annual percentage increase in the Price Index on the following dates: --February 1,2025 --February 1,2026 --February 1,2027 --February 1,2028 --February 1,2029 --February 1,2030 --February 1,2031 --February 1,2032 --February 1,2033 5. ADDITIONAL BASE RENT INCREASES: At any time from the commencement date of this Agreement, in addition to the annual Base Rent increase as set forth-in Section 4 above, Additional Rent • and/or other charges may be increased or separately assessed in compliance with the conditions set forth in the Mobilehome Residency Law, Civil Code Sections 798.30 through 798.49, as set forth below. Such pass-throughs may be implemented upon ninety (90)days written notice at any time during the term of this Lease (not just the anniversary date of the Base Rent increases as set forth in Section 4). A. Government or Quasi-Government Mandated Costs: Additional Rent increases resulting from Government or Quasi-Government mandated costs, as more fully described below, once assessed, will become part of the'Monthly Rent. For all purposes in this paragraph A, the starting property tax base amount shall be the 2023/2024 property tax assessment as evidenced by the then-current tax roll in effect as of February 1, 2024. i. Property Tax Increases: The Owner may pass through to the Homeowner the amount by which Property Taxes increase in any given fiscal tax year by more than two percent (2%)over and above the prior fiscal year Property Taxes,subject to the following: • A Property Tax Pass Through may be imposed in the amount of any Property Tax increase that exceeds two percent(2%)in a given fiscal tax year that is caused by 3 DocuSign Envelope ID: 115A6A88-C40C-4DED-9D33-A8CB8AFF265A (a)an involuntary Property Tax reassessment including but not limited to a death of a person holding an ownership interest within the Timber Cove Mobilehome • Community Joint Venture, or(b) any new general or special real estate property taxes imposed by the County of Santa Clara or the State of California.ia. With respect to an"involuntary change of ownership"reassessment in(a),Management shall use good faith best efforts to,avoid an involuntary reassessment. • If the Community is sold to a third party pursuant to an arms-length transaction, the Owner may pass through to the Homeowner the increase in Property Taxes resulting from a reassessment of the Community upon such sale to the extent that such increase exceeds two percent (2%) in a given fiscal tax year; provided, however,the total amount of any Property Tax Pass Through resulting from a sale shall be phased in over five(5)years with equal increases each year until the full amount of the Property Tax Pass-Through has been implemented and thereafter the full amount of the property tax pass-through shall be assessed in perpetuity. • Owner shall not be,:entitled to any Property Tax Pass Through due to an increase in Property Taxes which is triggered solely by a voluntary internal reorganization of the Owner that is considered a"change of ownership"or a transfer of a joint venture or partnership interest among the current persons holding an ownership interest that triggers a reassessment of the Community. A court-ordered "reorganization"or"change of ownership"is not voluntary. • The amount of the Property Tax Pass Through paid by the Homeowner shall be the total annual amount of the Property Tax Pass Through allowed divided by twelve (12) and then divided by the total number of spaces in the in the Community. ii. Any other new fees, assessments, bonds, bond-related costs, taxes or other government or quasi-government mandated costs,to be paid by Management,may be passed through to the Homeowner on a pro-rated basis as Additional Rent. Any increases in existing government or quasi-government mandated costs in excess of the annual percentage increase,as defined in Section 4,may be similarly passed through as Additional Rent. Any increases in existing government or quasi- government mandated costs below the annual percentage increase may not be passed through as Additional Rent. iii. If such fee or increase is assessed, such fee or increase will be divided .by the actual number of Lots in the Community and the number of months it is assessed and will be separately listed on Homeowner's .Monthly Rent Statement. iv. If such fee or increase is $25 or less per Lot, it may be passed through once annually in its entirety,and will be separately itemized on Homeowner's Monthly Rent Statement. Otherwise, for amounts greater than$25 per Lot, Homeowner's pro-rata share will be calculated on the basis of the actual number of mobilehome Lots in the Community and divided by twelve (12) and separately stated on Homeowner's Monthly Rent Statement. • DocuSign Envelope ID: 115A6A88-C40C-4DED-9D33-A8CB8AFF265A v. Such Additional Rent increases may be implemented upon ninety (90) days written notice at any time during the term of this Agreement (not just the anniversary date for Base Rent increases). vi. Any increase in Additional Rent due to taxes, fees, assessments, bonds, and bond-related costs or other government or quasi-government mandated costs not covered above shall terminate when such fees, assessments, bonds, bond- related costs or other government mandated costs are no longer assessed against the property upon which the Community is located. B. The following government or quasi-government mandated costs, once assessed,will be due and payable by Homeowner as Additional Rent and separately listed on each Homeowner's Monthly Rent bill, and will be eliminated once reimbursement to Management has been paid in full. Any costs of any government or quasi-government required capital improvements, and/or studies,and/or related activities required as a result of the studies,occurring or beginning during the term of this Agreement("Mandated Costs"), in excess of eighty-six thousand eight hundred thirty three dollars($86,833),adjusted annually during the term of this Agreement by the percentage change in the Price Index beginning on the Effective Date, per project or event, may be passed through to the Homeowner as Additional Rent on a pro-rated basis, provided such costs will: 1) be amortized as provided for in the Schedule of Amortization below, 2) include interest at the Prime Interest Rate adjusted annually on each anniversary of the completion date of the work related to the Mandated Costs, 3) be separately stated on the Monthly Rent bills, 4) not be deemed a part of Base Rent for purposes of calculating the annual Base Rent increases pursuant to Section 4 above, and 5) be eliminated once complete reimbursement has been achieved. Homeowner's pro-rata monthly share will be calculated on the basis of the actual number of mobilehome Lots in the Community divided by the number of months in the Schedule of Amortization pertaining to the Mandated Cost. Mandated Costs in connection with a single government or quasi- government mandated project or event may be generated from more than one source and shall be combined together to arrive at the total amount of Mandated Costs for such project or event. Mandated Costs may be passed through to the Homeowner as provided above commencing at any time during the term of this Agreement upon ninety (90) days written notice (not just on the anniversary date for Base Rent increases). Schedule of Amortization: • Mandated Costs up to $289,442.00, shall be amortized for a term of 10 years; • Mandated Costs between $289,442.01.00 and $1,157,766.99, shall be amortized for a term of 15 years; • Mandated Costs above $1,157,767.00 shall be amortized for a term of 20 years. The Schedule of Amortization ranges above shall be adjusted annually by the percentage increase in the Price Index during the term of this Agreement beginning on the Effective Date. • • DocuSign Envelope ID: 115A6A88-C40C-4DED-9D33-A8CB8AFF265A ii. Homeowner may be charged Additional Rent to reimburse Management for • any fees, assessments, or other charges permitted to be passed through to Homeowner under state law in rent-controlled areas. These costs will be separately listed on each Homeowner's Monthly Rent bill. Such rent inciease may be implemented upon ninety(90)days prior written notice at any time during the term of this Agreement •(not just on the anniversary date for Base Rent increases). C. Emergency or Disaster Related Costs: Any costs to repair damage to the Community arising from any emergency or disaster related occurrence or event, as defined in Section 2, occurring or beginning during the term of this.Agreement ("Emergency Costs"), in excess of eighty-six thousand eight hundred thirty three dollars ($86,833), adjusted annually during the term of this Agreement by the percentage change in the Price Index beginning on the Effective Date, per project or event, may be passed through to the Homeowner as Additional Rent on a pro-rated basis, provided such costs shall: 1) be amortized as provided for in the Schedule of Amortization below, 2) include interest at the Prime Interest Rate adjusted annually on each anniversary of the completion date of the work related to the Emergency Costs, 3) be separately stated on the Monthly Rent bills, 4)not be deemed a part of base rent for purpose of calculating the annual base rent increases pursuant to Section 4 above,and 5)be eliminated once complete reimbursement has been achieved. Homeowner's pro-rata monthly share will be calculated on the basis of the actual number of mobilehome Lots in the Community divided by the number of months in the Schedule of Amortization pertaining to the Emergency Cost. Emergency Costs in connection with a single emergency or disaster related occurrence or event as defined in Section 2, may be generated from more than one source and shall be combined together to arrive at the total amount of Emergency Costs for such emergency,disaster or event. Said Emergency Costs may be passed through to the Homeowner as provided above commencing at any time during the term of this Agreement upon ninety (90) days written notice (not just on the anniversary date for Base Rent increases). Emergency Costs will be calculated net of any insurance reimbursement. Owner shall not be entitled to pass through to the Homeowner any disaster related event costs unless the Owner has continued to maintain throughout the term of this Agreement the types and amounts of property insurance in effect on the Effective Date if those types and amounts of property insurance are commercially available throughout the term of this Agreement, at the same price in effect on the Effective Date, adjusted annually by the percentage increase in the Price Index. if those types and amounts of property insurance are not commercially available throughout the term of the this Agreement, at the above described price, Owner reserves the right, in its sole and absolute discretion, to purchase whatever property insurance it deems reasonable for the Community. Owner shall disclose Owner's property insurance coverage to Homeowner if Homeowner so requests,provided however,no Homeowner shall be entitled to such disclosure more than once in any twelve (1.2)month period. Schedule of Amortization: • ' Emergency Costs up to$289,442.00,shall be amortized for a term of 10 years; • Emergency Costs between$289,442.01 and$1,157,766.99,shall be amortized for a term of 15 years; • Emergency Costs above$1,157,767.00 shall be amortized for a term of 20 years. 6 • DocuSign Envelope ID: 115A6A88-C40C-4DED-9D33-A8CB8AFF265A The Schedule of Amortization ranges above shall be adjusted annually by the percentage increase in the Price Index during the term of this Agreement beginning on the Effective Date. D. If Homeowners' Additional Rent is increased pursuant to, 1) Government or Quasi- Government Mandated Costs, or 2) Emergency or Disaster Related Costs, as defined in Section 5, Management's calculations with respect to said Additional Rent increases, as well as pertinent supporting documentation, will be available for Homeowners' review at the Community office, as of the date of notice of the increase to the Tenant for a period of 90 days. 6. CAPITAL IMPROVEMENT PASS-THROUGHS: Throughout the term of this Agreement, capital improvements which are not Government or Quasi-Government Mandated Costs or Emergency or Disaster Related Costs set forth in Section 5,shall not be passed through as Additional Rent to the Homeowners. 7. UTILITIES: Management retains the right to sub-meter or to separately charge for any utility service in accordance with California law. Should Management decide to separate out such utility charges, Management agrees to meet with representatives of the Timber Cove Residents Association to explain the rationale for the separation of the utility charges. 8. RENT INCREASES ON RESALE: A. In the case of an on-site resale during the term of this Agreement of a mobilehome located in the Community as of the beginning date of this Agreement, Management may increase the Base Rent to the Purchaser in the following amounts: , • If a Homeowner's Base rent at the time of sale is $798.01 to $1,150.09, the Base Rent shall be increased by fifteen percent(15%). • If a Homeowner's Base rent at the time of sale is$1,150.10 and over,the Base Rent shall be increased by ten percent(10%). The Base Rent ranges above shall increase annually on the Base Rent Increase Dates provided for in Section 4 of this Lease by the greater of three percent (3°o) or seventy- five percent (75%) of the annual percentage increase in the Price Index. B. The limits stated above shall not apply, and there is not limit on the amount Management may increase Base Rent, in the following cases: • The owner of the home has voluntarily removed it or caused it to be removed from the Lot and has terminated his or her tenancy in the Community; • Management has terminated the Homeowner's tenancy pursuant to one or more of the stated reasons contained in Civil Code Section 798.56; •• The home being sold has been foreclosed upon by a financial institution or private lender; and/or • There is a sale of an on-site mobilehome to a mobilehome dealer or other • DocuSign Envelope ID: 115A6A88-C40C-4DED-9D33-A8CB8AFF265A individual(s) who does not intend to reside in the on-site mobilehome. C. In the event Homeowner's mobilehome passes by will, devise, bequest, or operation of Law to Homeowner(s)' heirs or successors, there shall be no rent increase at the time of such change of ownership of Homeowner's home, other than the Annual Base Rent Increases set forth in Section 4. 9. HOMEOWNER REPLACEMENT OF MOBILEHOME: If Homeowner decides to replace the existing mobilehome with a new mobilehome and continues to reside in the mobilehome after replacement, the Base Rent will be increased based on the following terms: A. The Base Rent to the Homeowner upon replacement of the mobilehome within twelve (12)months after the signing of an initial Rental Agreement with Management x-till be set to current market rate as determined by Management. B. Any Homeowner who replaces his/her mobilehome beyond twelve (12) months after signing an initial Rental Agreement with Management shall not be assessed an increase in Base Rent due to the replacement of the mobilehome but will be responsible for costs borne by Management as those costs relate to the placement of the new mobilehome. Homeowner will be billed separately for those costs, and they will not appear on the Monthly Rent statement. The annual Base Rent increase per Section 4 will also be charged on the Base Rent anniversary date. C. With respect to Subsection B above,in the event Homeowner elects to replace an existing mobilehome, at Homeowner's request Management shall provide a good faith written preliminary estimate of Management's anticipated costs in connection with the preparation of the Lot for a new mobilehome ("Lot Preparation Costs"). Management reserves the right to use its employees,agents,contractors, and/or vendors in connection with the Lot preparation. Lot Preparation Costs may include but are not limited to,utility pedestal replacement, utility pad replacement, repair or replacement of driveway, and/or removal of trees and shrubs. Upon completion of the Lot preparation, Management shall provide Homeowner with a fmal invoice reflecting the Lot Preparation Costs incurred by Management. Upon receiving the final invoice, Homeowner shall reimburse Management for the entirety of the Lot Preparation Costs on the earlier of: 1) ten (10) business days from Homeowner's receipt of said invoice, or 2) three(3) days prior to the installation of the new mobilehome. Management reserves the right to deny the installation of a new mobilehome until and unless all Lot Preparation Costs are reimbursed by Homeowner. Management shall have the right at Management's sole discretion to determine the extent and nature of any and all additions, removals, repairs, and/or replacements necessary to improve the Lot to a condition suitable for the installation of a new mobilehome. D. With respect to Subsection A above,following Homeowner's notice to Management that Homeowner has decided to replace the existing mobilehome, Homeowner will receive written notification of the Base Rent increase resulting from the replacement of the home ninety (90) days after Homeowner's notice to Management of replacement of mobilehome. The increase in Base Rent, resulting from the replacement of the mobilehome, will become effective on the date the Certificate of Occupancy has been issued by the applicable government agency. The annual Base Rent increase per Section 4 will also be charged on the Base Rent anniversary date. 8 DocuSign Envelope ID: 115A6A88-C40C-4DED-9D33-A8CB8AFF265A • 10. INFORMATION TO BE SUPPLIED BY MANAGEMENT: A. Within thirty (30) days after the effective date of this Agreement and upon re-renting of each mobilehome lot during the term of this Agreement, Management shall supply each tenant with a current copy of this Agreement. B. Whenever Management serves a notice of Base Rent increase on a current Homeowner, Management shall also advise the Homeowner in writing of the percentage amount of the rent increase and the amount of the new rent. C. If Homeowners' Additional Rent is increased pursuant to, 1) Government or Quasi- Government Mandated Costs, or 2) Emergency or Disaster Related Costs, as defined in Section 5. Management's calculations with respect to said Additional Rent increases, as well as pertinent supporting documentation, will be available for Homeowners' review at the Community office, as of the date of notice of the increase to the Tenant for a period of 90 days. 11. DISPUTE RESOLUTION PROCEDURE: A. ,The dispute resolution procedure described herein is the sole and exclusive remedy to address the issue of whether or not a material term of this Agreement has been violated by either Management or Homeowner(s). If either party believes that the other party has violated a material term of this Agreement, then that party shall file a written request, on a form to be provided by the City, requesting mediation of the dispute. Upon receipt of such a written request, within fourteen (14) days thereafter, the City shall refer the parties to the City Manager or their designee. Before referring the parties to mediation as discussed below,the City will first determine that the complaint alleged is a violation of a material term of this Agreement. If the City finds that the complaint does not allege a material violation of this Agreement, no mediation will be scheduled and the parties will be so notified. The parties will participate in a mediation of the dispute under the auspices of the City Manager or their designee. Any mediated settlement shall be reduced to writing and signed by Management,and the Homeowner or Homeowners' authorized representative and the mediator. If the dispute cannot be mediated, then the mediator will advise the City in writing that the dispute cannot be mediated. Either party may then request of the City in writing that the dispute be submitted to arbitration. The City shall bear the costs of providing the mediation; and the parties shall bear their own costs and attorneys' fees in connection with the mediation. B. A party may request arbitration only after the mediation process has been completed and the mediator in writing has advised the City that the dispute cannot be successfully mediated. Within seven(7)days of a written request for arbitration,the City shall refer the dispute to the American Arbitration Association for arbitration. The arbitrator will be charged with determining whether either party has violated a material term of this Agreement and declare a remedy in accordance with applicable law. The arbitrator(s) will be selected in accordance with the procedures of the American Arbitration Association and the arbitration will be conducted in accordance with the Rules of the American Arbitration Association. The City shall have no obligation to bear any fees and/or costs associated with the Arbitration. 9 DocuSign Envelope ID:115A6A88-C40C-4DED-9D33-A8CB8AFF265A 12. TERMINATION: This Agreement shall terminate on midnight,January. 31, 2034, unless repealed earlier by mutual agreement in writing between Management and Homeowners. Any rent increases allowed by this Agreement, which have been initiated but not completed during its term, shall continue in a manner consistent with the provisions of the Agreement until they expire. Similarly,in the event of the City, County, State or Federal government enacts law inconsistent with the terms of this Agreement,then this Agreement shall prevail through the date of Termination. Should a court of • competent jurisdiction adjudicate that the Agreement is superseded by a subsequently enacted law or regulation, then all and any rent increases allowed by this Agreement, which have been initiated but not completed during its term and prior to the effective date of the law or regulation in question shall continue in a manner consistent with the provisions of this Agreement and until they expire. A rent increase is "initiated"upon service of the 90 day implementation notice, as required under this Agreement and Civil Code section 798.30. 13. EXTENSION OF AGREEMENT: This Agreement may be extended for a similar term, or any term acceptable to all parties to this Agreement,provided that any extension will be in writing and signed by all the parties to this Agreement. 14. ATTORNEYS'FEES: In the event that it becomes necessary for any party to bring a lawsuit to enforce any of the provisions of this Agreement, the parties agree that a court of competent jurisdiction may determine and fix a reasonable attorneys' fees to be paid to the prevailing party. This provision extends to the prevailing party in any arbitration initiated under Section 11.B above. 15. BINDING ON SUCCESSORS: This Agreement is binding on the heirs, successors, and assigns of the parties hereto. 16. AMENDMENT: This Agreement may be amended,modified, or changed by the parties provided that said amendment,modification, or change is in writing and approved by all parties. 17. CIVIL CODE: The provisions of this Agreement are in addition to the provisions of the Mobilehome Residency Law set forth in Articles 1 to 9, Chapter 2.5,Title II,Part Two of the California Civil Code. 18. INTERPRETATION: All parties involved have prepared this Agreement and any legal presumptions as to the interpretation of any ambiguity herein shall be applied equally against all parties involved. This Agreement is in the nature of a settlement agreement. 19. ENTIRE AGREEMENT: This Agreement contains the entire agreement between the parties hereto. No promise,representation,warranty or covenant not included in the Agreement has been or is relied on by any party hereto. 20. COUNTERPARTS: This Agreement may be executed in multiple counterparts,each of which shall be deemed an original and all of which shall constitute one agreement notwithstanding that all signatories are not signatories either on the same date or to the same counterpart. A signature page may be detached from the counterpart when executed and attached to another counterpart, which other counterpart shall become the complete agreement. • 21. SEVERABILITY: If any section or portion of this Agreement is found to be invalid, such findings shall not affect the validity of the remainder of the Agreement,which shall continue in full force and effect. 10 DocuSign Envelope ID: 115A6A88-C40C-4DED:9D33-A8CB8AFF265A • 22. SUSPENSION OF RENT STABILIZATION REQUEST: In consideration of the execution of this Agreement by Management, and to the extent permitted by law,the City will suspend consideration of the adoption of a mobilehome rent stabilization ordinance. If however,Management shall fail to fulfill its obligations under this Agreement, then the City is free to consider enactment of a mobilehome rent stabilization ordinance. If Management is operating the community in compliance with the terms of this Agreement, it shall be exempted from any mobilehome rent stabilization ordinance for the remaining term of this Agreement. 'SIGNATURES ON NEXT PAGE] • • 11 DocuSign Envelope ID: 115A6A88-C40C-4DED-9D33-A8CB8AFF265A TIMBER COVE MOBILEHOME COMMUNITY JOINT VENTURE • Doing business as TIMBER COVE MOBILEHOME COMMUNITY Dated: 5/17/2024 By: `�"" b�' _ Jeffrey Moore,Brandenburg, Staedler&Moore-TC,LP TIMBER COVE HOMEOWNERS ASSOCIATION Dated: 5/17/2024 By: acriSfilnL St/ o w Christine Snyder,Timber Cove Homeowners Association President Dated: By: Dated: By: • CITY OF CAMPBELL Dated: By: Susan M. Landry,Mayor Approved as to form and content: Dated: By: William Seligmaann, City Attorney 9— Dated: 5/28/2024 By: f ., ' Andrew Ditlevsen,Attorney for Timber Cove Joint Venture doing business as Timber Cove Mobilehome Community rutt Dated: 5/24/2024 By: b ' Sfbin, Bruce E. Staton,Attorney for the Timber Cove Homeowners Association 4869-2789-3418.2 12