HomeMy WebLinkAbout10/20/1992, C-7 - JANITORIAL SERVICE FOR MULTIPLE BUILDINGS III^IYIII�IIIIII�� Ilulll "J G DATE:
IIIA �A CiQ _ .�
$an . i5 oBiSpo October
20. 1992
COUNCIL AGENDA REPORT ITEM Nllfyll
From: Wayne Peterson, Acting Public Works Director (-�
Prepared by: Lane Wilson, Parks and Buildings Manageraw4
Dave Smith, Buildings Supervisor
Subject: Janitorial Service for Multiple Buildings
CAO RECOMMENDATIONS:
1. By motion, approve the withdrawal of the bids submitted by
Friendship Maintenance Co. on items B, K. and L;
2. Approve the award to, and authorize the Mayor to execute, a
contract with Friendship Maintenance Co. in the amount of
$2, 647 . 00 per month for "Janitorial Service for Multiple
Buildings, Specification Number JAN-92-001 Bid Items A, D, E, F,
and G;"
3. Approve the award to, and authorize the Mayor to execute, a
contract with Brendler Janitorial Service in the amount of
$2, 650. 00 per month for "Janitorial Services for Multiple
Buildings, Specifications Number JAN-92-001, Bid Items H, J, K,
and L" .
DISCUSSION
I
On August 20, 1992, bids were received from three firms to provide
janitorial services for 12 separate facilities (bid summary attached) .
The specifications provided that each facility could be awarded to the
contractor submitting the lowest bid for that facility.
The low bid total ($76, 044 per year) exceeds the amount that had been
budgeted for these contracts by $12, 364. It is below what had been
estimated -for the work ($90, 000) . Under normal circumstances,
increasing the budget to accommodate the increase in project costs
would be the preferred alternative. However, in light of the financial
concerns of the City at this time, staff has investigated alternative
ways that the maintenance can be carried out without the need to
augment the budget.
We can accept some of the bids and expand the duties of the in-house
janitorial staff by reducing the levels of janitorial service to the
non-public areas in the following buildings: City Hall, 860 Pacific,
955 Morro, Jack House Service Building, the Library and the Civic
Center (old library) .
This proposal will involve no change in the cleaning and tending of the
public areas and restrooms. The employee office areas will receive
service on a weekly schedule. Unanticipated cleaning problems will
continue to be responded to by janitorial staff. It is hoped that
��� i�H►I�Illllllll� ���lll city of San ,. AIS OBISPO
ONGs COUNCIL AGENDA REPORT
Janitorial Service
Page Two
programs like recycling will reduce the need for some services, such as
daily trash pickup. An announcement requesting city staff help and
understanding of this situation will be made. Employees will be asked
to care for any day to day cleaning, emptying of trash, etc. that may
be required in their areas between scheduled service. Cleaning
equipment will be made available. Drawbacks to this recommendation
include: added wear and perhaps early deterioration of the city
facilities requiring replacement and other maintenance such as painting
and carpet on a more frequent basis. Staff will monitor the areas to
keep current on the effects of reduced .levels of maintenance on the
facilities.
BIDS
In order for this proposal to work, the City must withdraw bids on
Items B, C, and I. Also, Friendship Maintenance Co. has requested that
its bids for Items B, K, and L be withdrawn. Before the bids were
submitted, Friendship indicated that there were some facilities for
which it would rather not be the contractor. However, Friendship
submitted bids on all items as it was possible that a single bid could
be awarded to the lowest overall bidder. Friendship Maintenance Co.
was willing to accept an award for all facilities if that were
necessary to continue to provide some janitorial services to the City.
Friendship Maintenance Co. and Brendler have both agreed to accept an
award of the facilities as modified and described in this report.
As recommended, janitorial services will be provided to the following
facilities:
Friendship Maintenance Co.
Item
I
A Corporation Yard 850/mo 10,200/yr
D Swim Center 990/mo 11, 880/yr
E Sinsheimer Concession Bldg. 97/mo 1, 164/yr
F Meadow Park 260/mo 3 , 120/yr
G Senior Citizen's Center 450/mo 5 , 400/yr
2, 647/mo 31,764/yr
Brendler Janitorial Service
Item
H Recreation Center 600/mo 7, 200/yr
J Parking Offices 300/mo 3 , 600/yr
K Parking Structures #1 & 2 1, 750/mo 21, 000/vr
2 , 650/mo 31, 800/yr
TOTAL $5, 297/mo $63, 564/yr
������i�►►►�ulllllll�l�j��lll City Of San L"IS OBISPO
COUNCIL AGENDA REPORT
Janitorial Service
Page 3
City Janitorial Staff (No added costs for these buildings)
Item
City Hall
955 Morro Public Works Office
Library
Civic Center (old Library)
860 Pacific Recreation Office
Jack House Service Building
Background
During the Council meeting of July 7, 1992 , the City Council authorized
staff to .go out to bid for janitorial services. As part of this
authorization, staff was to return at the time of contract award with
an analysis comparing the cost of in-house versus contract services,
allocations of current staff, the buildings presently served by in-
house staff versus contract staff and service levels. The following
reviews these topics.
Overview of Janitorial Services:
In-house: City staff includes four janitors and one part-time janitor
(Field Worker II, 15 hours per week) assigned to four buildings.
One Janitor II takes care of the Police Department Building. Two
Janitors II and the part-time employee are assigned to City Hall
and the City/County Library (Community Rooms) . The Janitor III
cleans the old library and the Jack House Service Building,
inspects the contract janitorial services at eight buildings, and
performs all city locksmith work.
Although contracting is the most cost effective way to provide
janitorial services, the existing in-house janitorial staff needs
to be retained to maintain staffing flexibility for the following
. reasons: 1) security concerns at the Police Department are better
accommodated with a City employee; 2) the janitorial staff open
and close City Hall and the Library Communityrooms-which have
extended hours during the week and on weekends; and, 3) the
janitorial staff are assigned many duties in addition to those
typically assigned to a contract janitorial service.
The additional tasks include picking up mail from the post office,
setting up furniture, delivering copy paper, moving supplies and
equipment, cleaning up spills, keeping the restrooms ,serviced
throughout the day, and etc. These tasks are different each day.
In-house janitorial staff available during the day permits the
flexibility needed to accomplish these tasks. Reductions in the
. City staff would first be noticed in that these additional
services would be delayed or eliminated.
L'7-
���n�in�►►lillllllllli�° II�I11 MY Of san ,JI S OBI SPO -
COUNCIL AGENDA REPORT
Janitorial Service
Page 4
Contract: The two contracts to be awarded will provide janitorial
service to nine buildings for a cost of $63 , 564 per year.
Contract vs. in-house costs: The current cost for City staff to
service City Hall, the Police Department, the Library, and the old
library is $1. 14 per square foot per year for salaries, equipment
and supplies ($113, 000 for three janitors and a part-time
janitor) . This is based on the assumption that the in-house
janitorial staff spends 60% of their time performing scheduled
janitorial tasks and 40% of their time doing other work as
described above. The modifications recommended in this staff
report will increase .the areas to be serviced by staff and result
in less time availability to handle non janitorial tasks.
Recommended modifications to the contract cost for janitorial services
for ten facilities (excluding the parking garages) is $0. 91 per
square foot per year. The contract cost for cleaning the garages
is $0. 09 per square foot per year. To clean the garages with City
workers would cost approximately $0. 18 per square foot per year.
Service Levels
City staff .janitorial services are scheduled using the same
specifications required .of the contractors. These
specifications have been refined over the past several years
to provide an acceptable level of service. The contractor
works to maintain an acceptable level of service. City staff
inspects to insure compliance with the specifications.
During the bidding process the possibility of reducing
services to reduce cost was discussed with several
contractors. They all stated that to achieve any significant
reduction in costs, the number of times a contractor visited
each building would have to be reduced. However, a reduction
from five to three visits per week would result in savings of
no more than 15% to 20%. City staff would have to service
restrooms and high traffic public areas that need attention
on the skipped days.
Minor adjustments in task frequencies do not result in
significant savings. When frequencies are reduced, the tasks
will take longer to achieve the acceptable level of
cleanliness. Experience has shown that people take better
care of a well maintained facility. If you drop a paper
towel on a clean floor, you are likely to pick it up.
However, if there is already an accumulation of litter, you
may feel less of a need to pick up your mess.
-7
�►►�� ►I�IIIII�N�h ��U��l city of san LaIs OBIspo
COUNCIL AGENDA REPORT
Janitorial Service
Page 5
FISCAL IMPACT
Low Bids TOTAL $76, 044. 00/year $6, 337. 00/month
Estimate $90, 000. 00/year $7, 500. 00/month
Recommendation (9 areas) $63 , 564.00/year $5, 297 . 00/month
The contract will run through June 30, 1993. Extension of the contract
through June 30, 1994 will be subject to funding in the FY 1993-94-
Financial Plan.
There may be long term fiscal impacts to the City facilities due to the
reduction of the levels of janitorial maintenance and other maintenance
activities. Staff will keep track of this changing program.
Funds budgeted for this contract:
General Fund
Building Maintenance
Temporary Labor 6, 000
Contract Services 21,200
Swim Center
Contract Services 41800
other line items 7 , 080
General Fund Total $39, 080
Parking Fund
Contract Services 24, 600
TOTAL $63 , 680
The cost of the nine (9) facilities that are recommended to be awarded
is $63,564 .00/yr. An additional $12, 364 . 00 would be necessary to
appropriate from the unappropriated Fund Balance of the General Fund if
consideration was given to approving all of the sites that were bid.
(Alternative 1)
ALTERNATIVES TO CAO RECOMMENDATION:
1. Accept bids as tendered and appropriate $12,364. 00 from the
unappropriated Fund Balance of the General Fund.
This would be the staff recommendation if our budgetary problems
were not so severe. The advantages of maintaining the City
facilities are lower life cycle costs and longer facility life and
a positive City image.
Attachments:
Bid Summary
Letter dated August 27 , 1992 from Friendship School, Inc.
i:jan=93
�-7 S'
NOTE: THESE EXTENSIONS ARE FOR A FL._ YEAR
City of SAN LUIS OBISPO
Bid Opening:Date: August 20.1992 City Plan No.: JAN 92-001
Time: 3:OOpm m Job Title: Janitorial Services
Multiple Facilities
Friendship amtenance Brendler Janitorial Service Master
BID ITEM&DESCRIPTION ESMATE Co. Service Anytime
UNIT UNIT UNIT UNrr
No POEM UNIT OU PRICE AMOUNT PRICE AMOUNT PRICE AMOUNT PRICE AMOUNT
A Corporation Yard Month 12 1100.00 13200.00 850.00 10.200.00 1100.00 13200.00 1684.00 20208.00
Note 2
B 955 Moro Month 12 550.00 6.600.00 Note 1 0.00 625.00 7500.00 68430 8214.00
Note 2
C 860 Pacific Month 12 390.00 4.680.00 315.00 3.780.00 400.00 4,800.00 432.00 5.184.00
D Swim Center Month 12 1250.00 15.000.00 990.00 11.880.00 1350.00 16.2W.00 1957.00 23.484.00
Sinsheimer Park
E Concession Building Month 12 110.00 1.320.00 97.00 1.164.00 150.00 1.800.00 163.00 1.956.00
F Meadow Park Month 12 300.00 3.600.00 260.00 3.120.00 300.00 3.600.00 693.00 8316.00
G Senior Citizen Center Month 12 550.00 6.600.00 450.00 5.400.00 500.00 6.000.00 739.00 8.868.00
H Recreation Center Month 12 1000.00 12.000.00 685.00 8220.00 600.00 7200.00 1719.00 20.628.00
Jack House Note 2
I Service Bldg. Month 12 100.00 1200.00 160.00 1.920.00 100.00 12W.00 126.00. 1.51200
J Parking Office Month 12 550.00 6.600.00 370.00 4.440.00 300.00 3.600.00 570.00 6.840.00
K Parking Structure#1 Month 12 8W.00 9.600.00 Note 1 0.00 1750.00 21.000.00 5546.00 66552.00
Included
L Parking Structure#2 Month 12 800.00 9.600.00 Note 1 0.00 in K 0.00 3880.00 46560.00
bids for three items
BID TOTALS $90.000.00 were withdrawn $86.100.00 $218322.00
M ALL ITEMS Month 12FE-00:90:00:0-:00
N/A N/A 6900.00 82.800.00 16374.15 196.489.80
-"'TOW BIDS Month 12 5297.00 63.564.00 2,647.00 31.764.00 2.650.00 31.800.00
THE LOW BID FOR EACH rrEM IS UNDERLINED.
NOTE 1: Bids withdrawn by Friendship Maintenance Co.
NOTE 2: Sites withdrawn by City
��90
jan2001c 07-Oct-92
i
1
FRIENDSHIP SCHOOL, INC.
A comprehensive teaching and rehabilitative service
for developmentally and physically disabled adults
August 27, 1992
Pam Voges, City Clerk
CITY OF SAN LDIS OBISPO
990 Palm Street
San Luis Obispo, CA 93401
Dear Ms. Voges,
After discussion with City staff, the Friendship maintenance Company would
like to Withdraw its bids for the following janitorial assigraents submitted
on August 20th, 1992: o
Item (B) 955 Morro Street
Item (K) Parking Structure i1
Item (L) Parking Structure 42
We understand this can be done by mutual agreement without penalty.
Best wishes,
mmmilp SCHOOL, INC.
David R. Singleton
Bcecutive Director
DRS:sa
cc: David Pierce
Post Office Box 1451. San Luis Obispo, California 93406. 541-0629 /j
iIIN�I I►��Il�u�j CTL)/ o� san LUIS o5isp0 MUM`n2
COUNCIL AGEITEM N
NDA REPORT 1 .A Bim:
FROM: John Dunn, City Administrative Officef5:�'�
Jeff Jorgensen, City Attorney
Prepared by: David Gray, Administrative Analyst.
SUBJECT: Public Comment on Proposed Amendments to the Mobile Home
Rent Stabilization Ordinance Concerning Rent Increases Upon
Change of Ownership and Certain Exemptions.
CAO RECOMMENDATION:
Receive and file a report regarding additional information from mobile home park tenants,
representatives and owners on proposed changes relating to: (1) vacancy control; (2)
ordinance exemptions for leases; and (3) park conversions.
DISCUSSION:
Background
On September 15, 1992 the City Council considered possible changes to the City's
current Mobile Home Rent Stabilization Ordinance as adopted in June 1990 (see Item
#1.B.). The Council concluded that additional information would be helpful before making
a decision on changing the ordinance. Accordingly, staff was directed to seek additional
information from those directly affected by the ordinance and report back to the Council
on October 20.
Approach to Information Collection
Based on comments and questions raised during the September 15 hearing, staff
developed the following three questions to pose to those concerned with mobile home
park rent stabilization:
1. How has vacancy decontrol.during the last two years affected sales and rentals
(e.g., rates, vacancies) in the park where you live (or with which you are most
familiar)? Please give specifics and name the park.
2. What effect has the ordinance provision, granting exemptions to parks with two-
thirds of tenants under long-term lease, had on stabilizing space rents?
3. What effect has condominium conversion of your park had on rent stabilization?
''`' �I!►I �j i1111 City Of San JS OBISPO
COUNCIL AGENDA REPORT
These questions were included in letters sent by the City Administrative Officer on
September 23, 1992 to all park owners and tenant association presidents in the city of
San Luis Obispo, including many of those who testified before the Council at the public
hearing on September 15, 1992. Letters were also sent by the City Attorney on
September 21, 1992 to legal representatives of the tenants and the parks. A copy of the
letters and mailing list to the parks and legal representatives is provided as Attachment
1. Recipients of the letters were encouraged to pass on our request for information to
others.
Recipients of the letter were also asked to provide "factual information or actual
documentation . . . on these questions rather than statements of personal opinion on the
j issues". A deadline of October 2, 1992 was set in order to compile the information for
Council consideration prior to the scheduled public hearing on October 20, 1992.
Although staff established an October 2 deadline, all responses to the request for
information received by the City on or before the October 13 distribution of the agenda
have been assembled chronologically in a file folder and distributed separately to
Councilmembers. Some tenants provided information directly to Councilmembers, which
is also included in the folder. As information becomes available to staff prior to the
hearing, it will be prepared for insertion in the folder and distributed to Councilmembers.
Identical folders for public use are also being prepared and will be available for review in
the City Clerk's Office beginning on October 13. The City Clerk's Office will notice
interested parties of the availability of this information (person testifying on September 15;
those who submitted additional information; others who have expressed an interest in this
issue).
Information Summary
Given the time constraints, staff has not attempted to interpret, validate, or formally
analyze the material. Instead, outlined below is a brief overview of the information
j submitted.
I
i
■ Mobile Home Parks and Spaces: There are currently 13 mobile home parks in the
City of San Luis Obispo. Total number of spaces available is approximately 1,537.
(See Attachment 2 for a list of parks.) This varies slightly depending on short-term
occupancy. Comments were received from either owners or tenants in several
different parks.
■ Fact versus Opinion: Although staff emphasized the desire for factual
documentation, as might be expected, the level of detail provided varies
considerably between correspondence. Overall, however, the process has
resulted in additional material which the Council can consider in making a final
decision.
�i �!!IiII�a�IIll11 city of san Is oBispo
40 COUNCIL AGENDA REPORT
■ Vacancy Control Commentary: Supporters of reinstituting vacancy control indicate
in their correspondence that the City's Mobile Home Rent Stabilization Ordinance
should contain this provision to ensure reasonable limits on increases.
Homeowners believe that vacancy decontrol has made mobile homes harder to
sell due to the higher space rents required of new owners and cite current unsold
units as examples.
I
Opponents of reinstituting vacancy control do not believe that rents have been
increased unreasonably or sales affected by vacancy decontrol. Park owners tend
to believe that the current Mobile Home Rent Stabilization Ordinance is fair to both
homeowners and park owners. Correspondence from the law firm of Andre,
Morris & Buttery included in the Council folder refers to a proposed "compromise
solution". The firm reached consensus with a majority of the park owners to limit
rent increases to no more than 20% during a three year period. Additional
testimony on this proposal is anticipated at the October 20 Council hearing.
■ Lease Commentary: Several homeowners indicated their objections to signing
leases and being subject to lease terms if two-thirds of park residents agreed to
leases. Other homeowners indicated satisfaction with leases which have stabilized
rents.
■ Condominium Conversion Commentary: There was little comment on this issue
! as it relates to mobile home rent stabilization.
ALTERNATIVE:
The Council's alternatives concerning the vacancy control issue are outlined in Item 1.B.,
as originally drafted by the City Attorney in the September 15, 1992 agenda report. The
purpose of this agenda report has been to transmit and briefly summarize the added
information collected related to those original alternatives. As mentioned earlier, the
approach taken to collecting this additional information has been relatively informal and
completed within a fairly limited period of time.
i
Council may therefore wish to defer a decision on reinstituting vacancy control, and
instead attempt to complete a more formal, "statistically valid" analysis/survey of all mobile
home sales in the last two years, and attempt to document such indicators as actual
I space rent before and after sale. This would most appropriately be completed by an
"investigator' independent of the mobile home owners and the park owners. This would
not be an easy task. It would require a fairly sophisticated methodology, a substantial
commitment of time, and an as yet undetermined amount of staff or contractor time and
funding to complete. In addition, there is no guarantee that more formalized input would
make a decision significantly more clear-cut or easier. However, if such an approach is
viewed as important enough to all parties involved (park owners, tenants, the City), then
perhaps all parties could collaborate as to the best methodology, and also agree on some
level of cost sharing. �A-3
j�Ildlll city of San .is OBISPO
COUNCIL AGENDA REPORT
i ATTACHMENTS:
1. Letters to Park Owners, Tenant Association Presidents, Legal Representatives
2. List of Mobile Home Parks in the City of San Luis Obispo
3. Existing Rent Stabilization Ordinance
i
I
i NOTE: The file folder supporting this report has been provided to the City Council;
copies are available for public review in the City Clerk's Office.
dg\mhome.rpt
I
i
i
I
i
I
i
I
is-�{
September 22, 1992
1 -
2-
3-
4—
RE: Proposed Amendments to-the Mobile Home Park Rent Stabilization Ordinance
Dear 5—:
On September 15, 1992, at a regular City Council meeting, the City Council considered
proposed amendments to the Mobile Home Park Rent Stabilization Ordinance concerning
rent increases upon change of ownership and certain other exemptions. (A copy of the
Council agenda report is enclosed for your information.) After reviewing the report, public
testimony, and written submittals, the Council continued the item to the October 20, 1992
City Council meeting for further action. Staff was directed to solicit additional input from
the public, including information necessary to document findings for implementation of
vacancy controls, as well as to identify impacts of continuing the exemptions for parks
with 66.67%of spaces under lease agreements, and parks with condominium ownership.
In order for the City Council to have the benefit of your experience and comments prior
to the October 20th meeting, I am requesting specific information in response to the
following questions:
1. How has vacancy decontrol during the last two years affected sales and rentals
(e.g., rates, vacancies) in the park where you live (or with which you are most
familiar)? Please give specifics and name the park.
2. What effect has the ordinance provision, granting exemptions to parks with two-
thirds of tenants under long-term lease, had on stabilizing space rents?
3. What effect has condominium conversion of your park had on rent stabilization?
It would be most helpful if you could provide us with any factual information or actual
documentation you may have on these questions rather than statements of personal
opinion on the issues. Given the limited amount of time we will have to review the
material, it will also be extremely helpful if it is submitted in the most organized fashion
possible.
ATTACHMENT 1 /���
Page Two
Your response must be received by the City of San Luis Obispo no later than
October 2 to be included with other factual information provided to the City Council.
Please send it to the attention of David Gray, Administration Department.
If you know of others who may wish to comment, please assist us by passing on this
request. Your cooperation in providing the best available information to the City Council
is appreciated.
Sincerely,
John Dunn
City Administrative Officer
C. Jeff Jorgensen
Ken Hampian
David Gray
JD:bw
MOBLHM
Owner/Manager President, Tenant Association Owner/Manager
Willow Creek Mobile Home Park^ tillow Creek Mobile Home Park Valle Vista Mobile Home Park
3500 Bullock Lane 3500 Bullock Lane 333 Elks Lane
San Luis Obispo, CA 93401 San Luis Obispo, CA 93401 San Luis Obispo, CA 93401
sident, Tenant Association Owner/Manager President, Tenant Association
.e Vista Mobile Home Park Mathews Mobile Home Park Mathew's Mobile Home Park
333 Elks Lane 274 Higuera Street 274 Higuera Street
San Luis Obispo, CA 93401 San Luis Obispo, CA 93401 San Luis Obispo, CA 93401
Owner/Manager President, Tenant Association Owner/Manager
Mission Trailer Park Mission Trailer Park San Luis Mobile Home Park
546 Higuera Street 546 Higuera Street 2994 S. Higuera Street
San Luis Obispo, CA 93401 San Luis Obispo, CA 93401 San Luis Obispo, CA 93401
President, Tenant Association Owner/Manager President, Tenant Association
San Luis Mobile Home Park Chumash Village Mobile Home Park Chumash Village Mobile Home
2994 Higuera Street 3057 S. Higuera Street Park
San Luis Obispo, CA 93401 San Luis Obispo, CA 93401 3057 S. Higuera Street
San Luis Obispo, CA 93401
Owner/Manager President, Tenant Association Owner/Manager
Rancho San Luis Mobile Home Park Rancho San Luis Mobile Home Park Silver City Mobile Home Park
3395 S. Higuera Street 3395 S. Higuera Street 3860 S. Higuera Street
San Luis Obispo, CA 93401 San Luis Obispo, CA 93401 San Luis Obispo, CA 93401
President, Tenant Association Owner/Manager President, Tenant Association
Silver City Mobile Home Park Creekside Mobile Home Park Creekside Mobile Home Park
S. Higuera Street 3960 Higuera Street 3960 Higuera Street
.WI Luis Obispo, CA 93401 San Luis Obispo, CA 93401 San Luis Obispo, CA 93401
Owner/Manager President, Tenant Association Owner/Manager
Oceanaire Mobile Home Park Oceanaire Mobile Home Park Colonial Manor Mobile Homes
1121 Orcutt Road 1121 Orcutt Road 1255 Orcutt Road
San Luis Obispo, CA 93401 San Luis Obispo, CA 93401 San Luis Obispo, CA 93401
President, Tenant Association Owner/Manager President, Tenant Association
Colonial Manor Mobile Homes Laguna Lake Mobile Estates Laguna Lake Mobile Estates
1255 Orcutt Road 1801 Prefumo Canyon 1801 Prefumo Canyon
San Luis Obispo, CA 93401 San Luis Obispo, CA 93401 San Luis Obispo, CA 93401
Owner/Manager President, Tenant Association
Village Mobile Home Park Village Mobile Home Park
145 South Street 145 South Street john\mblhom.lst
San Luis Obispo, CA 93401 San Luis Obispo, CA 93401
George Hoffman ' aguna Lake Co. Jim Murdock
605 Eman Court" J. Box 15178 100 N. Hope Avenue, Ste. 1
Arroyo Grande, CA 93420 Long Beach, CA 90815 Santa Barbara, CA 93110-1686
Bill Dermody Glen Johnston AI Tate
1150 Osos Street, Ste 202 1595 Los Osos Valley Rd P.O. Box 2159
San Luis Obispo, CA 93401 Los Osos, CA 93402 Avila Beach, CA 93424
Dennis Law Jim Buttery Ed Evans
P.O. Box 730 P.O. Box 730 1055 Ortega Way, Unit B
San Luis Obispo, CA 93406 San Luis Obispo, CA 93406 Placentia, CA 92670
William & Dolores Wilson Randy High Claremore Fenderson
3825 Valley Blvd. 1300 County View Drive 29994 Orange Street
Walnut, CA 91789 Modesto, CA 9535-9641 Shafter, CA 93263
Bobby Anderson Silver City Mobile Lodge Dick Geluk
11023 North Creek Road Bill Moody 5024 Nerill Street
Ojai, CA 93023 3860 S. Higuera Street Torrance, CA 90503
San Luis Obispo, CA 93401
Pat Fleming Don Smee mbihom2.ist
3960 S. Higuera Street 1760 Alrita Street
San Luis Obispo, CA 93401 San Luis Obispo, CA 93401
iii iii�!►!�!i!II Ilial���ji►;I'I �I(;,IIII IRI j� ' j�l II
�I city, osAn luoaspo
-- - 990 Palm Street/Post Office Box 8100 • San Luis Obispo, CA 93403.8100
September 21, 1992
Dennis Law
Andre, Morris and Buttery
P.O. Box 730
1304 Pacific St.
San Luis Obispo, CA 93406
Re: Proposed Amendments to the Mobile Home Park
Rent Stabilization Ordinance
Dear Mr. Law:
On September 15, 1992 , at a regular City Council meeting, the
City Council considered proposed amendments to the Mobile Home Park
Rent Stabilization ordinance concerning rent increases upon change
of ownership and certain other exemptions. (A copy of the Council
agenda report is enclosed for your information. ) After reviewing
the report, public testimony, and written submittals, the Council
continued the item to the October 20, 1992 City Council meeting for
further action. Staff was directed to solicit additional input
from the public, including information necessary to document
findings for implementation of vacancy controls, as well as to
identify impacts of continuing the exemptions for parks with 66. 67%
of spaces under lease agreements, and parks with condominium
ownership.
I would greatly appreciate it if you would submit any
additional information or analysis you may wish to provide on these
'issues to my office by October 2, 1992, so that it may be included
with the October 20th agenda report. I would also appreciate it if
you would assist the City in forwarding this request to other
interested persons or parties you may know of who may wish to
comment on the issue.
If I may be of further assistance to you in any way, please
feel free to contact me at your convenience.
Sincerely,
J re G. o ensen
City A"tto ey
c: John Dunn
Ken Hampian
David Gray
I'lil I II'I'I i t l I I I Ilil
uir�l!I LIQ I�I�i i�i�I� ili�l��j��`lilll l lli l lli�!;III city of SAn 1S OBISPO�
990 Palm Street/Post Office Box 8100 • San Luis Obispo, CA 93403.8100
September 21, 1992
C. Brent Swanson
Swanson & Dowdall
Attorneys at Law
P.O. Box 2504
4 Hutton Center Dr. , Suite 200
Santa Ana, CA 92707-0504
Re: Proposed Amendments to the Mobile Home Park
Rent Stabilization Ordinance
Dear Mr. Swanson:
On September 15, 1992 , at a regular City Council meeting, the
City Council considered proposed amendments to the Mobile Home Park
Rent Stabilization Ordinance concerning rent increases upon change
of ownership and certain other exemptions. (A copy of the Council
agenda report is enclosed for your information. ) After reviewing
the report, public testimony, and written submittals, the Council
continued the item to the October 20, 1992 City Council meeting for
further action. Staff was directed to solicit additional input
from the public, including information necessary to document
findings for implementation of vacancy controls, as well as to
identify impacts of continuing the exemptions for parks with 66. 67%
of spaces under lease agreements, and parks with condominium
ownership.
I would greatly' appreciate it if you would submit any
additional information or analysis you may wish to provide on these
issues to my office by October 2, 1992, so that it may be included
with the October 20th agenda report. I would also appreciate it if.
you would assist the City in forwarding this request to other
interested persons or parties you may know of who may wish to
comment on the issue.
If I may be of further assistance to you in any way, please
feel free to contact me at your convenience.
Sincerely,
e ey G. or nsen
Ci y Attor ey
c: John Dunn
Ken Hampian
David Gray
/A-io
MOBILE HOME PARKS IN THE CITY OF SAN LUIS OBISPO
Park Address Spaces
1. Chumash Village 3057 S. Higuera Street 237
. 2. Colonial Manor 1255 Orcutt Road 64
3. Creekside 3960 S. Higuera Street 215
4. Laguna Lake 1801 Prefumo Canyon 296
5. Mathews 274 Higuera Street 28
6. Mission 546 Higuera Street 33
7. Oceanaire 1121 Orcutt Road 69
8. Rancho San Luis 3395 S. Higuera Street 102
9. San Luis 2994 S. Higuera Street 17
10. Silver City 3860 S. Higuera Street 300
11. Valle Vista 333 Elks Lane 22
12. Village 145 South Street 74
13. Willow Creek 3500 Bullock Lane 82
TOTAL 1,537
dg\mhom.tab 10/92
ATTACHMENT 2 A
5.44.090 Application for rent
adjustment—Evaluation—
Relevant factors.
5.44.100 Application for rent
adjustment—Hearing—
Determination.
5.44.110 Application for rent
adjustment—Hearing—Appeal.
5.44.120 Rent increases not made in
conformity with provisions—
Tenant's right to refuse to pay.
5.44.130 Actions brought to recover
possession of mobile home
space—Retaliatory eviction
grounds for denial.
5.44.140 Owner to provide tenants with
copy of this chapter.
5.44.141 Amendment
5.44.142 Severability.
Prior history.Ordt 923.1020.1077.1079.and 1091;prior code§§
4800 through 4802,4804 through 4809 and 4811 through 4813.
5.44.010 Purpose and intent.
Chapter 5.44 A. There is presently within the city and the
MOBILE HOME PARK surrounding areas a shortage of spaces for the
location of mobile homes Because of this short-
RENT STABII.IZATION• age, there is a very low vacancy rate, and rents
have.been for several years, and are presently,
Sections: rising rapidly and causing concern among a sub-
5.44.010 Purpose and intent. stantial number of San Luis Ob'
5.44.020 . Definitions. . . � residents.
B. Mobile home tenants,forced by the lack of
5.44.030 Exemptions. suitable alternative housing,have had to pay the
5.44.040 Mobile home park owner rent increases and thereby suffer a ft=her reduc-
exemptions under Section tion is their standard of living;',`
5.44.030(F). _ C. Because-of'the.high'cost and. imprac-
5.44.050 City council—Powers and• ticability of moving mobile homes;the potential
duties: - for damage"resultingthere6o
m; the require-
5.44.060 Base space rent meats relating to the installation: of mobile
Determination—Allowable homes, including permits,landscaping and site
increases without hearing. preparation,the lack ofalternative homesites for
5.44.070 Application for rent mobile home residents, and the substantial
adjustment—Fee—Contents— investment of mobile home owners in such
Notice of request—Hearing. homes, this council finds and declares it neces-
5.44.080 Application for rent sary to protect the owners and occupiers of
adjustment—Conduct of mobile homes from unreasonable rent increases,
hearing.
(San Luis Obispo 7.89) 134
ATTACHMENT 3
5.44.020
while at the same time recognizing the need of within a mobile home park pursuant to
park owners to receive a suitable profit on their ownership of the mobile home or under a rental
property with rental income sufficient to cover or lease agreement with the owner of the mobile
increases in costs of repair, maintenance, insur- home.
ante, utilities, employee services, additional E. "Rehabilitation work"means any renova-
amenities, and other costs of operation, and to tion or repair work completed on or in a mobile
receive a fair return on their property. home park performed in order to comply with
D. This council finds that the present low the direction or order of a public agency or public
vacancy rate and frequent rent increases are par- utility, or to maintain existing improvements in
titularly hard upon and unfair to residents of a safe and usable condition, or to repair damage
mobile home parks within the city. Large num- resulting from fire, earthquake or other casualty.
bers of these residents are senior citizens and F. "Space rent" means the consideration,
others on fixed incomes who installed their including any security deposits, bonuses, bene-
mobile homes in the city when the present infla- fits or gratuities, demanded or received in con-
tionary rent increases could not reasonably have nection with the use and occupancy of a mobile
been foreseen. home space in a mobile home
park, or for
hous-
E. However, this council recognizes that a ing services provided, but a
exclusive of any
rent stabilization ordinance must be fair and amount paid for the use of a mobile home dwell-
equitable for all parties and must provide appro- ing unit
prim incentives for mobile home park operators G. "Change of ownership" means the sale,
to continue their parks profitably, as well as to rental transfer, or exchange of a mobile home
attract additional investors for new parka. (Ord. subject to the provisions of this chapter, except-
1117 (part), 1988) ing the transfer to tenant's spouse by gift,bequest
or devise.
5.44.020 Defuddons. H. "Hearing officer" means the duly
For the purpose of this chapter, certain words appointed hearing officer selected from a panel
and phrases used herein are defined as follows: of qualified hearing officers. A hearing officer
A. "Capital improvements" means those shall have no financial interest in either a mobile
improvements, not previously located in the home park or a mobile home nor have been a
mobile home.park, that materially add to the resident of nor reside in a mobile home park.
value of the property and appreciably prolong its L "Appellate panel" means a panel of three
useful life or adapt it to new uses,and which may qualified hearing officers. A panelist shall have
be amortized over the useful life of the improve- no financial interest in either a mobile home
went in accordance with the Internal Revenue park or a mobile home nor have been a resident
Code and regulations issued pursuant thereto; of nor reside in a mobile home park
provided, that this definition shall be limited to J. "CPI" means the Consumer Price Index
capital improvements approved by more than (1967 m 100) All Items, All Urban Consumers,
fifty percent of the tenants in the affected park. for the Los Angeles/Long Beach/Riverside stan-
B. "Mobile home park" means an areaof dard metropolitan statistical area published by
land which rents spaces for mobile home dwell- the Bureau of Labor Statistics, United States
mg units. Department of Labor. If the CPI is not hereafter
C. "Mobile home park owner" or "owner" published,then any substitute index, or,if none,
means the owner,lessor,operator or manager of then the index most closely resembling the CPI
a mobile home park. shall become the new CPI.
D. "Mobile home tenant"or"tenant"means K "Qualified Hearing Officer." The city
any person entitled to occupy a mobile home administrative officer shall maintain a list of
135 (San LUIS Ow,00 7-89)
JA-/3
5.44.030-5.44.040
available qualified hearing officers. Qualified with the city clerk a statement setting forth the
hearing officers shall be persons experienced in basic facts upon which the claim for exemption
financial and accounting methods with knowl- rests,such as total number of spaces, number on
edge of mediation process and rules of evidence. long-term leases. identity of spaces on long-term
(Ord. 1117 (part), 1988) leases, expiration date for each long-term lease
and any other information determined necessary
5.44.030 Exemptions. by the city administrative officer to evaluate the
The provisions of this chapter shall not apply claim.
to the following tenancies in mobile home parks: 2. The statement shall include a listing, by
A. Mobile home park spaces rented for non- space number and name,of each tenant not on a
residential uses: long-term lease and who would be affected by the
B. Mobile home parks managed or operated claim of exemption. In addition,the owner shall
by the United States Government, the state of provide proof of service that all tenants have
California, or the county of San Luis Obispo; been notified of the claim of exemption and of
C. Tenancies which do not exceed an occu- the fact that a tenant may file an objection within
panty of twenty days and which do not contem- arty days,
plate an occupancy of more than twenty days, 3. The statements required to be filed above
D. Tenancies for which any federal or state shall be confidential and not public records
law or regulation specifically prohibits rent reg- unless and until a hearing officer determines oth-
ulation; eswise as necessary to conduct a hearing as set.
E. Tenancies covered by leases or contracts forth in subsections(D)or(F) of this section.
which provide for a tenancy of more than a year, B. An objection to the claim of exemption
but only for the duration of such lease or con- may be filed with the city clerk within thirty days
tract Upon the expiration of or other terming- after the notice of claim has been served. The
tion of any such lease or contract, this chapter objection shall state the grounds of the objection.
shall immediately be applicable to the tenancy. The only acceptable grounds for objection is that
No rent increases other than that allowed under the owner in fact does not have two-thirds of the
the provisions of the lease shall be allowed during spaces in the park on long-term leases.
the duration of such a lease or contract. C. If an acceptable and timely objection is
F. Spaces in a mobile home park in which at rived the owner and the tenant(s) filing the
least 66.67 percent of said spaces are governed by objection shall meet and confer to negotiate in
a lease with an initial term of more than one year, good faith and attempt to reach an agreement. If
G. Mobile home parka which sell lots for fac no agreement is reached within thirty days of the
tory-built or mantifixtured housing, or which date of filing of the objection, the owner shall
provide condominium ownership of such lots, within ten days notify the city administrative
ev1.en if one or mon homes in the development officer that an agreement or resolution to the
are rented or leased out (Ord. 1117 (part), 19 88) objection has not been reached The city admin-
istrative officer shall proceed to select a hearing
5.44.040 Mobile home park owner officer as set forth in Section 5.44.070(E).
exemptions under Section D. The hearing officer shall set and conduct a
5.44.030(F). hearing as set forth in subsections(E)and(G)of
A. Any mobile home park owner claiming an Section 5.44.070.The hearing officer shall deter-
exemption under Section 5.44.030(F)shall com• mine whether the claim of exemption is valid,
ply with the following requirements and pro- taking into account all relevant evidence, facts
cedures and circumstances necessary to come to a deci-
1. Such mobile home park owner shall file non.
(Sm Luis Obispo 749) 136
5.44.050-5.44.060
E. The hearing officer's charges shall be shall be the space rent designated in leases
paid by the city. for comparable spaces. A schedule of current
F. An appeal may be taken from a decision rents in the park shall be posted in a conspic-
of the hearing officer as set forth in Section uous place in the park.
5.44.110,includingthe obligation for the costs B. Except as otherwise provided in this
of the appellate panel as set forth in subsec- chapter, the maximum monthly space rent
tion (D) thereof. (Ord. 1146 § 1, 1989) may be increased no more than once a year
based on the percentage change in the CPI,
5.44.050 City council—Powers and or nine percent, whichever is less, calculated
duties. as follows:
Within the limitations provided by law and 1. The maximum monthly space rent may
in addition to any other powers and duties be increased at a rate equal to one hundred
the council has, the city council shall have
the following percent of the CPI up to five percent and
g powers and duties: seventy-five percent of the CPI in excess of
A. To meet from time to time as required five percent calculated as follows:
to receive, investigate, hold hearings on, and a. The change in space rent shall be calcu-
pass upon the issues relating to mobile home lated by dividing the ending CPI index by the
park rent stabilization as set forth in this beginning CPI index.
chapter; b. If the resulting quotient is less than 1.05,
B. To direct staff to make or conduct such
independent hearings or investigations as then it shall be multiplied by the space rent.
may be appropriate to obtain such informa- The resulting product shall be the new space
tion as is necessary for the council to carry rent.
out its duties; c. If the resulting quotient is greater than
C. To adopt, promulgate, amend and re- 1.05,then the difference between the resulting
scind administrative rules,as it deems appro- product and 1.05 shall be multiplied by
priate to effectuate the purposes and policies seventy-five percent. The resulting product
of this chapter. (Ord. 1117 (part), 1988) shall be multiplied by the space rent and that
product shall be added to the sum derived
5.44.060 Base space rent— from Section 5.44.060(B)(1)(b)above. The sum
Determination—Allowable shall be the new space rent.
increases without hearing. d. The beginning CPI index shall be the
A. The "base space rent" for purposes of index for the month used as the ending index
this chapter shall be the monthly space rent for the last CPI adjustment.
charged as of March 15, 1982 plus any in- e. The ending CPI index shall be the index
creases otherwise allowed, pursuant to this for the month twelve months after the begin-
chapter. The maximum monthly space rent ning index.
for any space under a lease, upon expiration 2. At least every two months the city ad-
of the lease, shall be no more than the rent ministrative officer shall publish, by means
charged in the last month of said lease. In of an advertisement or similar notice in the
parks where there is an exemption because newspaper, the percentage change of the CPI
66.67 percent of the spaces are governed by a allowed under this subsection B for the
lease with an initial term of no less than one twelve-month period immediately preceding
year, then the maximum monthly space rent the month for which CPI information has been
136.1 (San Luis Obispo 7.91)
/A!Sr
5.44.060
most recently published by the appropriate home park. No rent shall be imposed or col-
federal agency. lected in excess of the provisions of said list.
3. It is the intention of this subsection B to D. No owner shall either (1) demand, ac-
allow for automatic increases in space rent cept or retain a rent of or from a tenant in
based on changes in the cost of living as mea- excess of the maximum rent permitted by this
sured by the CPI. The limitations on such chapter, or (2) effect a prohibited rent in-
increases are intended to minimize the im- crease by a reduction of general park facili-
mediate impact drastic changes in the CPI ties and services. However, an owner may
modify the nature of park services if reason-
might have on residents. The limitations are able allowance is provided to the tenant. For
not intended to prevent ultimate adjustments example,if the owner elects to submeter water
to allow owners to receive a fair return on so that tenants pay for water consumed by
their property. them,then tenants shall receive a reasonable
C. The maximum monthly space rent of a reduction from their base space rent.
tenant may be increased by the owner when E. Space rent may be automatically ad-
there is a change of ownership affecting a justed based on increases in expenses for
mobile home. Provided, however, it shall be common area utilities, new government-
unlawful and a violation of this chapter for mandated services,garbage service and cable
an owner to intentionally and willfully in- television, where applicable. The space rent
crease the monthly space rent of a tenant may be adjusted by dividing the total increase
above the fair market rent in the community in any such expenses incurred during a
for the purpose of forcing the tenant to sell twelve-month period by twelve, less the per-
his mobile home to the owner, hiscentage in the CPI index for the twelve-month
agent, or period. The quotient shall be allocated to the
representative. The owner shall use normal space rent for each space in the park based on
and prudent business practices in establishing the amount the space rent relates to total
the new fair market rent amount for each space rent for the park. Notice of the increase
space. The city council recognizes that the ad shall be in writing and shall be given as re-
hoc establishment of a fair market rent quired by law no less than sixty days prior to
amount for any given space whenever there any such increase being effective. The notice
is a change of ownership affecting a mobile shall state the amount of the rent increase,
home thereon can lead to favoritism, discrim- the new space rent, the amount of the total
ination, evasion of the rent stabilization or- increase in expenses and the nature of the
dinance, and substantial economic uncer- expense.A copy of the notice shall be given to
tainty for both buyers and sellers of mobile the city administrative officer. The city ad-
homes. Therefore, the owners of each mobile ministrative officer shall have the authority
home park shall once,and not more than once to resolve questions regarding computation
at the beginning of each calendar year, post of the space rent increase based on this sec-
for each space in the park the new fair market tion. There shall only be one such increase in
rent amount which will be established upon any twelve-month period. (Ord. 1173 § 1, 1990;
Ord. 1167 § 1, 1990; Ord. 1146 § 2, 1989; Ord.
the change of ownership during that calendarOrd.
(part), 1988)
year for the mobile home situated upon any
given space. The park owner shall provide
said list to the city clerk, and shall post a
copy of said list in the office of the mobile
(San Luis Obispo.7.91) 136-2 //
.1•
5.44.070
5.44.070 Application for rent the application objected to and shall state the
adjustment—Fee—Contents— grounds of the objection.
Notice of request—Hearing. 1. A copy of an objection filed by an owner
A. Except for automatic increases in base shall be mailed to each of the designated
rent allowed under Section 5.44.060,an owner tenant representatives.
or tenant may file with the city clerk an ap- 2. A copy of an objection filed by a tenant
plication for a rent adjustment("application"). shall be mailed to the owner. The tenant's
The application shall state the amount of objection shall designate not more than three
the adjustment for each space affected and persons to act as representatives for the ob-
the reasons for the adjustment. jetting tenants. The objection must be accom-
1. An application shall be accompanied by panied by a statement containing the names
the payment of a fee as may be established and addresses of tenants representing no less
from time to time by the council. than fifty-one percent of the spaces affected
2. An application filed by an owner shall by the owner's application and verifying that
be accompanied by a statement that the they object to the application, established by
tenant for each space affected has been served secret ballot election.
either personally or by mail with a notice de- C. If no objection is filed to an application
scribing the application and the change in within the time allowed, or if less than
rent or services. fifty-one percent of the tenants support an
3. An application filed by a tenant shall be objection to an application, then the applica-
accompanied with a statement stating that tion will be automatically granted.
the owner has been either personally or by D. If an objection is filed within the time
provided, then the owner and the tenant rep-
mail served with the application and with a resentatives shall meet and confer to nego-
tiate in good faith an agreement regarding
persons to act as representatives for the spaces the application. Either party may request a
affected and containing the names and ad- mediator of their choice to assist in the nego-
dresses of tenants representing no less than tiations, but this is not required. If an agree-
fifty-one percent of the spaces affected by the ment is reached within sixty days, then the
application and supporting the application tenant representatives shall notify all ten-
and established by a secret election. ants affected by the agreement. The tenants
4. A statement shall accompany the appli- shall have ten days to approve or disapprove
cation and shall notify the receiving party of the agreement. If tenants representing a
that he/she has thirty days to file an objet- majority of the spaces affected fail to disap-
tion and if one is not filed within the time prove of the agreement then the agreement
allowed,then the application will be automat- shall be binding on the owner and all tenants
ically granted. affected. The city clerk shall be notified that
B. An objection to the application may be an agreement has been reached. The state-
filed with the city clerk within thirty days ments made in negotiations and any agree-
after the notice of application has been served. ments reached but not approved shall not be
The objection shall identify the portions of admissible in any subsequent hearings re-
garding the application.
E. If the owner and the tenant representa-
tives fail to reach an agreement within the
137 (Sen Luis Obispo 7.91)A
1.
5.44.070
time provided or if a majority of the tenants
disapprove of an agreement reached,then the
applicant shall within ten days notify the city
administrative officer that an agreement has
not been reached. The city administrative of-
ficer shall obtain a list of no less than five
qualified hearing officers. Owners and ten-
ants may each delete one person from the list
of qualified hearing officers within seven days
and one of the remaining persons shall be
selected by the city administrative officer as
the hearing officer. Appointment of the
hearing officer shall be completed no later
than twenty-one days after filing of the no-
tice that an agreement has not been reached.
F. The hearing officer shall set a hearing
on the application complying with the require-
ments of this section no'less than ten days
and no more than thirty days after his•ap-
pointment. The hearing officer shall notify
the owner and tenants,in writing,of the time,
place and date set for the hearing.No hearing
or any part thereof may be continued beyond
thirty days after the initial hearing date,
without the applicant's consent.If the hearing
officer approves an application as requested
or as modified, the same shall take
(San Luis Obispo 7.91) 138 ,y p
5.44.080-5.44.090
effect as noticed by the owner or as the hearing A. In applying the foregoing factors,the hear-
officer may otherwise direct. (Ord. 1117 (part), ing officer shall utilize the maintenance of net
1988) operating income (MNOI) formula. Under the
MNOI allowable gross-rents are calculated as
5.44.080 Application for rent adjustment— follows: all operating expenses for the twelve-
Conduct of hearing. month period ending December 31, 19 81 are sub-
A. All review hearings conducted by the hear- tracted from all operating expenses for the
ing officer shall be conducted in accordance with twelve-month period immediately preceding the
the Ralph M.Brown Act,at Section 54950 et seq. date of the application for which expense data is
of the California Government Code and accord- available.In the event operating expenses are not
ing to the rules of the American Arbitration available for the period ending December 31,
Association. 1981, then expenses for a twelve-month period
B. All interested parties to a hearing may have reasonably close to December 31, 1981 may be
assistance from an attorney or such other person substituted. The difference shall be added to
as may be designated by the parties in presenting Bross annual rent based on rental rates in effect
evidence or in setting forth by argument their on March 15, 1982. The sum shall be the allow-
position. All witnesses shall be sworn in and all able gross annual space rent.The allowable gross
testimony shall be under penalty of perjury. space rent shall be fairly apportioned between all
C. In the event that either the owner or the spaces in the park The space rent determined
tenant(s) should fail to appear at the hearing at under the MNOI formula shall be adjusted as
the specified time and place, the hearing officer follows:
may hear and review such evidence as may be 1. There shall be an adjustment to allow for
presented and make such decisions as if all par- inflation calculated as follows: the net operating
ties had been present income(NOI)for the base period shall be calcu-
D. Owner and affected tenants may offer any lated by subtracting the park's operating
testimony, documents, written declarations or expenses for the twelve-month period ending
other relevant evidence. December 31, 1982,from the park's annual gross
E. Formal rules of evidence shall not apply. space rent based on the space rent in effect on
F. Minutes shall be taken at all review hear- March 15, 1982. The CPI index for the month
ings. (Ord. 1117 (part), 1988) most recently available prior to filing the applica-
tion shall be divided by the CPI index for March,
.5.44.090 Application for rent adjustment— 1982. The resulting quotient shall be multiplied
Evaluation—Relevant factors. by the base period NOI.This shall be the adjusted
In evaluating the application the council may NOI. The operating expenses for the twelve-
consider,along with all other factors it considers month period immediately preceding the date of
relevant,changes in costs to the owner attributa- the application for which information is avail-
ble to increases or decreases in master land and/ able shall be added to the adjusted NOI.The sum
or facilities lease rent, utility rates, property shall be the inflation-adjusted gross space rent.
taxes, insurance, advertising, variable mortgage The allowable space rent shall be the greater of
interest rates,employee costs,normal repair and the space rent calculated using the MNOI for-
maintenance, and other considerations, includ- mula and the space rent adjusted for inflation.
ing, but not limited to, rehabilitation work, cap- 2. In calculating MNOI there shall be an
ital improvements, upgrading and addition of adjustment to the gross space rent in effect on
amenities or services, net operating income, and March 15, 1982,if the hearing officer determines
the level of rent necessary to permit a just and that the gross space rent in effect on that date did
reasonable return on the owner's property.
138-1 (San Luis Obispo 7.881
/A-/?
5.44.100-5.44.110
not allow the owner to receive a just and reason- 5.44.110 Application for rent adjustment—
able return on his property. Hearing—Appeal.
3. If the hearing officer concludes that the A. Any appeal from a decision of the hearing
MNOI formula, and the adjustments thereto, officer shall be filed with the city clerk The
does not provide a just and reasonable return to appellant shall also mail a copy of the appeal to
the owner, then the hearing officer may apply the responding party. The appeal shall state the
any reasonable formula, including a return on grounds on which it is based.An appeal filed by a
investment, a return on fair market value, or tenant shall be accompanied by a statement con-
return on equity,to determine a space rent which taining the names and addresses of the tenants
will allow the owner to receive a fair and reason- supporting the appeal. The appeal must be sup-
able return on his property. ported by at least fifty-one percent of the tenants
B. The hearing officer shall not consider affected by the appeal.
income arising from spaces leased in the park B. Upon filing of a valid appeal, the city
Pursuant to Section 5.44.030E of this chapter. administrative officer shall obtain a list of no less
Likewise, the hearing officer shall not consider a than seven qualified hearing officers. The hear-
pro rata portion of the expenses of park opera- ing officer who previously acted shall not qualify.
tion attributable to the leased spaces. (Ord. 1117 Owners and tenant representatives may each
(part), 1988) delete one person from the list of qualified hear-
ing officers within seven days, and three of the
5.44.100 Application for rent adjustment— remaining persons shall be selected by the city
Hearing—Determination. administrative officer as the appellate panel.
A. The hearing officer shall snake a final deci- Appointment of the appellate panel shall be
sion no later than twenty days after the completed no later than twenty-one days after
conclusion of the hearing. The hearing officer's filing the appeal.
decision shall be based on the preponderance of C. At the time set for consideration of the
the evidence submitted at the hearing. The deci- appy,the appellate panel shall review and con-
sion shall be based on findings. All parties to the sider the record of the hearing officer's hearing as
hearing shall be advised by mail of the hearing well as the decision and finding of the hearing
officer's decision and findings. officer. After review and consideration, the
B. Pursuant to his findings,the hearing officer appellate panel may either (1) determine that a
may. further hearing shall be held, or (2) ratify and
I. Permit the requested adjustment to become adopt the decision and findings of the hearing
effective, in whole or in part; or officer. If a further hearing is conducted, the
2. Deny the requested adjustment; or appellate panel may, upon conclusion of that
•j. Permit or deny, in whole or in part, hearing and in no event more than thirty days
requested reductions of, or charges for, facilities . thereafter, modify or reverse the decision of the
or services. hearing officer, only if the-appellate panel finds
C. Any decision of the hearing officer shall be that there has been an abuse of discretion or that
final unless, within fifteen days after mailing of there is no substantial evidence to support the
the decision and findings, the owner or any hearing officer's decision. The appellate panel's
affected tenant appeals the decision. decision shall be final and no appeal may be
D. The hearing officer's charges shall be paid taken to the council.
by the city. (Ord. 1117 (part), 1988) D. If the parry filing the appeal is unsuc-
cessful, then that parry shall pay the appellate
(San Luis Obispo 7.88) 138-2
5.44.120-5.44.142
panel's charges.If the responding party is unsuc- action was brought in retaliation for the exercise
cessful, then both parties and the city shall share of any rights conferred by this chapter shall be
equally in payment of the appellate panel's grounds for denial. (Ord. 1117 (part), 1988)
charges. (Ord. 11I7 (part), 1988)
5.44.140 Owner to provide tenants with copy
5.44.120 Rent increases not made in of this chapter.
conformity with provisions— Any tenant offered a lease or contract which if
Tenant's right to refuse to pay. accepted and fully executed would be exempt
A tenant may refuse to pay any increase in rent from the provisions of this chapter (Section
not made in conformity with this chapter. Such 5.44.030E) shall at the time of the offer also be
refusal to pay shall be a defense in any action provided with a copy of this chapter. (Ord. 1117
brought to recover possession of a mobile home (part), 1988)
space or to collect the rent increase. (Ord. 11I7
(part), 1988) 5.44.141 Amendment.
The provisions of this chapter may be
5.44.130 Actions brought to recover amended by a majority vote of the city council.
possession of mobile home space— (Ord. 1117 (part), 1988)
Retaliatory eviction grounds for
deataL 5.44.142 Severability.
Notwithstanding Section 5.44.120, in any If any portion of this chapter is found to be
action brought to recover possession of a mobile invalid,then that shall in no way affect the valid-
home space, the court may consider as grounds ity of the remaining portions of this chapter.
for denial any violation of any provision of this (Ord. 1117 (part), 1988)
chapter. Further, the determination that the
138-3 (San Luis Obispo 7.881
M'�/