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City of San Leandro February 22, 2022 Page 2 only example provided in the Ordinance supports our positi on that a December year to year calculation is the only reasonable interpretation. Lungren v. Deukmejian (California Supreme Court, 1988) 45 Cal.3d 727, 735 (under the “plain meaning” rule words used in a statute or ordinance should be given the meaning t hey bear in ordinary use and the meaning may be determined from the words construed in context and even with provisions relating to the same subject matter harmonized to the extent possible). Furthermore, we are not aware of any other City in California that applies such an “average” CPI calculation. Thus, the industry norm or standard also supports our interpretation. We understand the City is adamant that its interpretation of the CPI calculation is the correct calculation. However, we respectfully disagree for the reasons set forth herein. This calculation by the City, if incorrect, is costing our clients tens of thousands of dollars as well as the other park owners in the City. We are aware of the prior and ongoing communications between the City and our clients involving this issue. Our clients have already noticed their rent increase for 2022 based on their 4% calculation and not the City’s erroneous 3.2%. It appears the parties are at an impasse at this time. Our clients intend to file an ac tion for declaratory relief and seek a preliminary injunction whereby a local Alameda County Judge will ultimately decide this narrow issue. In the alternative, our clients are willing to not implement the rent increase portion in dispute, and not file th e lawsuit if the City will agree to have a neutral third party arbitrator (agreed upon by the parties) render a non -binding opinion on th e CPI calculation. We think that may be the best path to get some finality on this issue. If our clients are content with the arbitrator’s non -binding opinion then the lawsuit can be avoided. Please let us know how the City wants to proceed. We understand the City has been using this calculation for several years now and is not inclined to change its position which admits the calculation was always wrong. However, this dispute is costing our clients too much money not to seek clarification from a Judge or a third party arbitrator. I can be reached by phone at 949 -565 -1337 and by email at chris@rudderowlaw.com . We look forward to the City’s respons e. Thank you.