HomeMy WebLinkAbout01-21-1986 MHRRB Minutes1�
CItYSM lU1S OB1Asw
ADMINISTRATIVE OFFICE
990 PALM STREET • Post Office Box 321 • San Luis Obispo, CA 93406-0321 • 805/549-7101
MINUTES
MOBILEHOME RENT REVIEW BOARD
January 21, 1986
le WELCOME/INTRODUCTIONS
Acting Chairperson Gaye Benson called the meeting to order at
9:20 a.m. with the following in attendance:
Board Present: Barlow, Wright
Staff Present: Henderson
II. REVIEW OF PACKET
Steve Henderson reviewed the Board's packet which included: correspondence
from Jim Buttery re SB 1352; correspondence from Jim Buttery re further
adjustments to the Ordinance dated 12/30; memo from State Department of
Housing and Community Development dated 1/3; letter from Mr. and Mrs. Soto
dated 12/15; Advisory Body Handbook; packet from Creekside Homeowners
Association to the Mobilehome Rent Review Board.
III. APPROVAL OF MINUTES
MOTION: (Barlow, Wright) To approve the minutes of the December 13, 1985
meeting= as submitted. PASSED
Mr. David Brymer addressed the Board on a previously submitted correspondence
regarding the Board's powers concerning subpodna and ability to decrease
rents under the ordinance. After discussion, the Board agreed to seek
the City Attorney's opinion on these issues later in the meeting,
IV. PROCEDURAL AND ADMINISTRATIVE ADJUSTMENTS TO THE ORDINANCE
Postina of Rent Schedules:
MOTION: (Wright, Barlow) That all parks be required to post in a prominent
place in their offices the highest and lowest rent charged in that
park for singlewide and doublewide units. PASSED
Amendment to minutes: The Acting chairperson directed the recording
MH RRB
January 21, 1986
Page 2
secretary to insert "Resource Conservation/Metering" between Items 1 and 2
on page 5 of the minutes of January 21, 1985.
Resource Conservation/Metering
The Acting Chairperson invited public comment on the issue of individual
metering and how it might be accomplished.
Ward Spencer: Homeowners are interesed in conservation. The question ip
how to equitably adjust this since metering would represent a rent increase
if tenants were required to pay for water. Creekside residents feel their
allowance is too low according to national and local figures. For
calculation purposes, local and national figures could be used. He felt
that mobilehome parks would be equal to City's average usage. Another
method would be to install meters, have parks continue to pay for a
six month test period and get actual usage over that period.
Leigh Willard: Mobilehomes use less water, so metering isn't needed for
conservation. Metering is a justification for an increase in rent.
Charles Long: Protested water rate increases. Feels that metering might
have an impact on conservation, though most tenants do conserve.
He is concerned with future water needs and availability. A suggested
method might be to look at old bills and develop an average per space
charge, dropping rents back a little to allow for costs of water and
sewer. An average could be taken in the different seasons. City's fees
for connection would be charged to tenant.
(Boardmember 5,wem• arrived at 10:15 and assumed the Chair)
David Brymer: Would caution Board that metering not be allowed, because
it presents a method of increasing revenue to the owner and usage is
less in mobilehomes than in conventional housing.
Dennis Law, Attorney: (Represening Jim Buttery) Metering should be
available as an alternative to ownem. They permit a fair charge
and encourage conservation. A pass-through of utility costs is
legitimate. A look at water usage of an historical period could
ascertain costs. Costs for installing and maintaining metering systems
are an allocation of capital improvement and operating costs. Park owners
may need to derive a specific formula. Any costs associated with the
provision of water should be passed through directly.
Leigh Willard: Since costs of metering are considerable, it wouldn't be
logical for woners to assume unless they planned a direct pass-through
of charges. Would there be a commeasureate reduction in rent?
Ed Evans: Based upon 3-4 years of metering experience, he's observed
a 300-50% reduction in water usage. Recommends establishing a committee
to recommend the "how-tos" to the Board, using historicalro!cords.
Mobilehomes do use less water than average homes. It is appropriate
that actual rates billed be passed through to tenants. With regard
to common areas, there is tremendous variance between parks. A rental
discount might be offered to offset the installation. Expense could
be viewed as an operating expense or a capital improvement with
MHRRB
January 21, 1986
Page 3
replenishment costs.
Connie Snapp: There should be metering to prevent over -usage, however,
a rent reduction would be appropriate.
Chairperson Swem closed public comments at this point, and Boardmembers
discussed the various pieces of information they would need in order
to make an informed decision on this issue. An ad-hoc committee to
study and make recommendations on resource conservation/metering was
appointed, consisting of Ed Evans, Charles Long, Paul Beauvais,
and Ward Spencer. The ad-hoc group was instructed tozmeet with
staff in order to begin e•:ork on the recommendations and to
prepare a report for the next meeting.
The next meeting time was set for February 13, 1:30-4:00.
Cover Letter for Owner/Tenant Applications
Chairperson Swem introduced his draft of this letter, and after Board_,
comment, agreed to produce a final including the Board's comments.
(Boardmember Wheeler arrived at 10:55 a.m.)
City UtI liti-es Manager Bill Hetland was introduced by Steve
Henderson, and he answered Board questions regarding average
usage figures, fees, and rates.
City Attorney Roger Picquet entered the meeting and responded
to previously raised questions about subpoena power and
ability to reduce rents. His opinion was that the Board had
subpoena power as a surrogate of the Council, but that power
would likely not be used as a matter of practice. He
said that it was his opinion that the Board could in
practice decrease rents, but that if this option presented
itself in the context of another sort of hearing, that the Board
would want to publicize its intention to pursue this, and solicit
evidence pertaining to rent decrease.
Reserves for Replacement
The Board began preliminary discussion on reserves for replacement. There
was a general consensus that reserves for replacement were a prudent
business practice, but rates and transfer and methods of accumulation
were undecided. The Board will discuss this issue in depth at its
next meeting.
MHRRB
January 21, 1986
Page 4
Creekside Homeowners' Packet
The Board dl.scuss€d the best method of revtew_iing the packet, and directed
staff to meet in a mediation capacity with the owner and homeowners'
association to attempt to find agreement on as many issues as possible.
Staff was directed to then prepare a recommendation on any outstanding
issues that might need Board review.
V. ADJOURNMENT
The meeting was adjourned at 12:15 p.m. The next meeting of the
Mobilehome Rent Review Board was scheduled for Thursday, February
13, 1:30 pm - 4:00 pm.
Respectfully submitted,
n GuyreC,6weAl, Recording ecretary