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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