Meeting #5

City of Hayward Spanish Ranch I Proposed Rent Increase: Meet and Confer Meeting #5 Notes Wednesday, November 19, 2008 Hayward City Attorney’s Office Hayward, CA This evening’s meet and confer session consisted of a series of caucuses with the HOA and Ownership Negotiation Committees. Dr. Ken Baar participated in the evening’s session as a consultant to the process. Dr. Baar is an expert in fair rate of return issues specific to mobile home parks, and shared his knowledge and expert opinion with both parties.

Review/Approval of Meeting #3 and Meeting #4 Notes The Facilitation Team distributed hard copies of draft Meeting #3 and Meeting #4 notes, with all changes based on the parties’ requests tracked in the document. The HOA group approved Meeting #3 notes and requested additional time to review notes from Meeting #4.

Summary/ Next Steps The HOA group provided a counter-proposal that included: 1) A $45 monthly addition to the residents’ base rent to account for the pass-through tax moving forward. 2) HOA remains interested in Ownership applying for a reassessment of the property. The Park Ownership Committee maintained its proposal of $63/month base rent increase and offered a surcharge of $11.80 for 5 years to capture the previous year’s tax increase. The previous proposal of adding the base rent increase to resident bills as a separate line item was removed from the table. Ownership also agreed to explore further options with members of their Board and will provide any additional information to the HOA – via the Facilitation Team – prior to the HOA’s upcoming December 4 meeting. Currently, no additional meet and confer session has been scheduled. NOTE: Audiotapes of the meetings, except caucuses, are available.

Spanish Ranch I Meet and Confer Meeting #5 FINAL Meeting Notes – rev2/2/09

Wednesday, November 19, 2008 Page 1