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990 Palm Street/Post Office Box 8100 • San Luis Obispo, CA 93403-8100
MOBILEHOME RENT REVIEW BOARD
MINUTES
JUNE -5TH, 1986
MEMBERS PRESENT: Barlow, Label, Wheeler, Wright.
STAFF PRESENT: Henderson, Sloan.
Meeting was called to order at 1:46 p.m. by Chairperson Barlow.
I. APPROVAL OF THE MINUTES. MAY 15TH, 1986.
Due to last minute revisions of the minutes of May 15th, 1986, the
approval of the minutes was deferred until the next meeting.
II. REVIEW OF PACKET.
Mr. Henderson reviewed the packet of information given to the
Boardmembers. The packet included correspondence from Boardmember Grden
about the Creekside application, 3 paragraphs dealing with mobilehomes
from the Health and Safety and the California Civil Codes, correspondence
from Mr. Buttery about the status of state legislation dealing with the
subletting of mobilehomes, correspondence from Mr. and Mrs. Nicas dated
May 22nd, a copy of transcripts of Mr. Evans' testimony at the last
meeting. Mr. Henderson also noted that Adele Raymond gave the results of
a Municipal Court case which involved measure A of the County of
San Luis Obispo to him and that it was available for review.
III. CREEKSIDE APPLICATION.
The continuing hearing of the Creekside application began with those
that wished to give testimony being sworn -in by the City Clerk.
Mr. Beauvais and Mr. Perry, representing the mobilehome owners at
Creekside, spoke first. Mr. Perry said that he thinks the application is
an important issue, and that what needs to be decided is, given that you
have rent control, can a park owner allow conditions to deteriorate. The
issue, he stated, was not the individual problems, but the overall
circumstance.
With reference to the CPI, Mr. Perry stated that the Board must make a
decision as to what CPI to use. He noted that the National All City CPI
was recommended by the Bureau of Labor Statistics for matters dealing with
accelerator clauses, and that he recommended the use of the National All
City CPI.
MHRRB
6-5-86
CREEkSIDE APPLICATION (CONTINUED) PAGE 2
Mr. Perry stated that the trash issue may appear that it is easier to
pickup the trash at the trailer, however tenants had to go out and buy
trash barrels and trash bags. It is unfair, Mr. Perry stated, for park
owners to save money at the cost of the tenants. Mr. Perry said that
according to the Ordinance you can't reduce services without a reduction
in rent.
Another problem, Mr. Perry noted, was that the tenants can't put
barrels out to the curb the night prior. The solution to this problem was
to be the trash patrol, which would follow behind the trash truck and put
the barrels back onto the trailer space. Mr. Perry said that when you
consider the cost to the tenants and the savings to Mr. Evans a rent
reduction for this change in trash procedures would be $4.00 per month per
space.
Mr. Perry felt that the Board would be in violation of the Ordinance
by putting a cap on water usage. He stated that that would be charging
for something that was free. Mr. Perry said that he sees no cap on water
as the only legal approach; but if water is limited the tenants would
accept nothing less than 800 cubic feet per month per space. Again
Mr. Perry said that if a cap is put on water usage the Board would be
creating a circumstance where tenants would be charged for something that
was originally free.
Mr. Perry said with reference to the condition of the laundry
facilities available that an appropriate rent reduction should be
considered.
About the pool, Mr. Perry said that the pool is still a problem. The
pool is not heated properly, Mr. Perry said, and that the lack of proper
pool heating is a reduction in service. When considering what it would
cost to swim elsewhere an appropriate reduction in rent would be $6.50 per
month,per space.
With reference to the street conditions, Mr. Perry, using Mr. Evans
estimate of the cost to pave the streets at $80,000 to $100,000, said that
if the work is not to be done there needs to be a rent reduction of $8.00
per month per space for a period of amortization of five years. Mr. Perry
stated that he and Mr. Beauvais had come up with the figures, and that the
total of rent reduction that they were requesting was $19.50 per month per
space. Mr. Beauvais spoke next.
Mr. Beauvais noted that Mr. Evans had said that he, (Mr. Evans), would
like to apologize and that Mr. Beauvais feels that he should.
Mr. Beauvais said that Mr. Evans knew the age of the park when he
purchased it, and that he knew that rent control existed when he purchased
the park.
Mr. Beauvais said that Mr. Evans had taken money out of the park, but
had not put money into the park.
Mr. Beauvais described mobilehomes as big investments for owners, and
when amenities and services are not provided, that erodes the value of the
mobilehome.
Mr. Beauvais said that Mr. Evans had said that Creekside was a better
park now than when he first took over. Mr. Beauvais disagreed with this
contention, noting that Creekside, prior to ownership by Mr. Beauvais, had
been awarded the prize of Obispo Beautiful.
CREEKSIDE APPLICATION CONTINUED) MHRRB
6-5-86
PAGE 3
Mr. Beauvais said that he took exception to Mr. Evans remark that he
wanted only the truth. Mr. Beauvias stated that the laundry facilities
and prices were the facts. Mr Beauvais went on to say that the tenants
don't have the same services that are available at the downtown
laundromats. He said that comparing the parks facilities with those
laundry facilities that are available downtown was comparing apples and
oranges. Mr. Beauvais said that the temperature of the water in the
washing machines was inadequate. He stated that there were ten machines
one was taken out and another is not operable now. Mr. Beauvais said that
the ten machines were put into service under a formula and the formula
should be adhered to.
With reference to the swimming pool, Mr. Beauvais said that the week
following Mr. Evans presentation to the Board, the pool temperature was
less than 80 degrees for the whole day. He stated that prior to Mr. Evans
ownership there were forty or so people who swam in the pool on a regular
basis, many of these swam around 8 a.m. He said that many have quit
swimming, and that you can't tell from one day to the next what the pool
temperature will be.
Mr. Beauvias said that the solar heating system for the pool was set
up wrong. He said that the solar system was set up to operate
automatically, but is actually operated manually. Mr. Beauvais summed up
by saying that the residents would like to have the appropriate pool
temperature.
The next item Mr. Beauvais addressed was the cable television system.
Mr. Beauvais said that the park is charged $1.00 per cable outlet and that
an additional charge of $1.00 is added for additional television sets;
this additional charge is not passed through to Sonic cable.
Mr. Beauvais said that he felt that some of the fences needed to be
replaced, but that he objected to the requirement of 6 foot high redwood
fences as the only acceptable replacement.
With reference to Mr. Evans claim that an individual had made $8000.00
on the sale of his mobilehome, Mr. Beauvais said he didn't believe it.
Mr. Beauvais said that the pictures that he had presented to the Board
had shown that the drives and streets were not in good condition. He
noted that some gravel had been put down, but that it hadn't lasted.
Boardmember Label asked Mr. Beauvais what the pool temperature was
currently. Mr. Beauvais responded that he didn't have a breakdown for
recent temperatures, but that the association had made available to the
board a temperature breakdown that covered 94 days from 6 months ago.
Boardmember Label then asked if the temperature could have been as much as
79 degrees. Mr. Beauvais said that it could have been as high as 79
degrees, but that 85 degrees is the comfort range for pools.
Chairperson Barlow inquired as to whether or not there are occasions
when no park attendent is there. Mr Beauvais said that that was true.
Chairperson Barlow then asked when the solar panels for the pool were put
into operation. Mr. Beauvais said 1983. Chairperson Barlow then asked
how many panels were in the solar system. Mr Beauvais said that he didn't
know.
Mr. Buttery asked Mr. Beauvais if he had evidence of the temperature
kept at 8am by the prior owner. Mr. Beauvais said that he hadn't, but
that a log had been kept.
MHRRB
6-5-86
CREEKSIDE APPLICATION CONTINUED PAGE 4
Mr. Buttery asked Mr. Perry where he had gotten his figures on the
savings the park would incur on the rearrangement of trash pickup. Mr.
Perry said the figure came from Mr. Beauvais and involved the buy out of
the old contract. Mr. Buttery asked if the figure took into account the
additional cost to the park for staff to take care of the trash. Mr.
Perry said that the figure didn't take that into account, but that staff
are already paid and are not an additional cost.
A 10 minute break was called, at 2:30pm. The hearing resumed at
3:10pm; with Boardmember Label absent.
The Board next heard testimony from Mr. Evans and Mr. Buttery. Mr
Evans spoke first.
Mr. Evans said that he would not respond to previous testimony. Mr.
Evans said that his daughter took pictures of the park, showing the worst
intersection in the park. Mr. Evans presented to the Board a summary of
the analysis of the water, including the conservation factor. Mr. Evans
noted that the 25% conservation figure is used all over the state. Mr.
Evans proposed that the park should receive the benefit of savings on
water cost, but in fairness he is willing to split the benefit between the
park and the mobilehome owners. Mr. Evans recommended that the park
residents be allowed 660 cubic feet water usage for doublewide mobilehomes
and 610 cubic feet for singlewide mobilehomes
Mr. Evans said that his previous testimony stands.
Chairperson Barlow asked about the cost of the individual water
meters. Mr. Evans said that he had staff install the meters, and that
using a plumber would average between $65 and $80 per meter with the cost
of the meter themselves being around $30.
Mr. Henderson said that Mr. Evans conservation figure of 25%, which
was the figure that Mr Hetland used and that Mr. Hetland had stated that
the figure could also be within the range of 15-20% or as high as 30-35%.
Mr. Buttery stated that Mr. Perry's reliance on All City CPI and the
Bureau of Labor Statistics' recommendation isn't what the Ordinance
covers; that the CPI to be used is the one that the Board recommended,
(LA Longbeach CPI).
Mr. Buttery noted that Mr. Perry failed to consider the cost of staff in
coming up with the trash pickup savings. Mr. Buttery noted that Mr.
Beauvais had shown no evidence of mobilehome value detoriation.
Mr. Buttery stated that evidence exists to show that since Mr. Evans has
taken over the park there has been an increase in the sales price of
mobilehomes in the park.
Mr. Evans noted that the pool water temperature today was slightly
over 80 degrees at 8:30am. Mr Evans went on to say that the previous
owner made no effort to cover the pool, and that there was no evidence to
show that the temperature was higher prior to his ownership.
Mr. Buttery noted that the solar system is automatic. Mr. Buttery
also said that Mr. Beauvais suggested that profit was being made by Mr.
Evans on the cable system, and that was not true.
Boardmember Wright asked if the $2 collected for cable service went
to Mr. Evans or to the cable company. Mr. Evans said that the park paid
for all outlets, that he charges exactly what the cable company charges
and that the $2 may temporarily be in his pocket, but that it doesn't stay
there.
Chairperson Barlow asked if the staff was ever absent from the park.
MHRRB
6-5-86
CREEESIDE APPLICATION(CONTINUED) PAGE 5
Mr. Evans said that the staff is there, at the park, 7 days a week.
Chairperson Barlow asked if the solar system was automatic, and Mr. Evans
answered that it was, but that it still needed to be operated both ways,
automatically and manually, and that it has to be monitered manually.
Mr. Evans also said that the pool was uncovered and serviced at lam.
Chairperson Barlow asked if there was a thermostat on the solar system.
Mr. Evans said that there was. Chairperson Barlow said that the system,
then, was automatic. Mr. Evans said that yes it was, but that it is
operated with greater efficency when used both automatically and manually.
Mr. Evans stated that he was just told that the pool temperature was 80
degrees for last week.
Boardmember Wheeler asked if the pool temperature varied with cloudy
weather. Mr. Evans said that weather can affect temperature dramatically,
and that in the winter the temperature loss at night is impossible to
recover.
Boardmember Wright asked if the manager is on vacation is his post
covered. Mr. Evans said that it was covered by the maintenance
supervisor. Boardmember Wright then asked if the temperature setting was
timed. Mr. Evans said that it is and that it has to be changed regularly.
Boardmember Wright asked if the pool was monitored daily, and Mr. Evans
said that it was.
At this point Chairperson Barlow closed the hearing to further public
testimony, and the Board began discussions on the Creekside application.
MOTION: (Wheeler, Barlow) PASSED: To allow the installation of
water meters and to allow 660 cubic feet, for doublewide mobilehomes, and
610 cubic feet, for singlewide mobilehomes, as base rent reduction at the
prevailing city water rate, with the tenants paying for water consumed.
Chairperson Barlow then facilitated the continuance of the discussion
of the Creekside application, asking Boardmembers if they wanted to break
out items of the application or take the package as a whole. It was
agreed that the package should be taken as a whole.
Boardmember Wheeler stated that it was a shame that the application
had to come before the Board. Boardmember Wheeler stated that he hoped
that the tenants' complaints were heard, and that he thought that Mr.
Evans did an admirable job, but not a perfect job.
Boardmember Wright stated that with regards to the pool that she could
understand the tenants' frustration, and that perhaps the problem didn't
prevail with the previous owner, however she felt that Mr. Evans has done
everything he can with the system he has, and possibly nothing more can be
done.
Chairperson Barlow asked if many more people used the pool prior to
Mr. Evans ownership of the park. Mr. Evans deferred the question to Mr.
Fleming, who said that he didn't think less people use the pool now. Mr.
Fleming also said there had been no change in policy about the pool
temperature.
CREEKSIDE APPLICATION (CONTINUED)
MHRRB
6-5-86
PAGE 6
Chairperson Barlow asked about the uncovering of the pool, and Mr.
Fleming said that he and another staff person did that. When asked about
pool procedures prior to Mr. Evans, Mr. Fleming said that he wasn't that
involved with the pool operations at that time.
Boardmember Wright said that she heard that some pool equipment was
shut off at 6pm. Mr. Fleming said that pool equipment isn't shut off
until the pool is closed. Boardmember Wright asked if the pool
temperature remained constant, to which Mr. Fleming responded that every
effort is made to keep the temperature constant.
MOTION: (WHEELER, WRIGHT) PASSED: To deny the Creekside Tenants'
application.
IV. ADJOURNMENT
The Mobilehome Rent Review Board meeting was adjourned at 4:05pm. The
next scheduled meeting is Thursday, July 17th, 1986, at 1:30pm.
Respectfully submitted,
W A Sloan Clerk
MOBILEHOME RENT REVIEW BOARD
MINUTES
JULY 17TH 1986
MEMBERS PRESENT: Barlow, Grden, Label, Wheeler, Wright
STAFF PRESENT: Henderson, Sloan
Meeting was called to order by Chairperson Barlow at 1:34p.m
I. APPROVAL OF THE MINUTES, MAY 15TH AND JUNE 5TH, 1986.
The minutes of the Mobilehome Rent Review Board hearings of
May 15th and June 5th, 1986, were approved as prepared.
II REVIEW OF PACKET.
Steve Henderson reviewed the packet that had been provided to
the Board. It included:
1 correspondence from Leola Rubottom
2 correspondence from Adele Raymond
3 Staff and City Attorney's rendering of the Decision and
Order on the Creekside application
4 California Mobilehome Park Survey
5 correspondence from Sherial Fox
6 copy of long-term rental agreement from RanchoA el Bordo
7 draft of correspondence to mobilehome park owners from
the MHRRB re: the posting of rent schedules
8 memo from Steve Henderson re: the water formula first
presented at the hearing of March 27th, 1986.
III. SILVER_ CITY_ APPLICATION
Chairperson Barlow expressed her concern about chairing the
Silver City hearings because of having personally employed one of the
attorneys involved with the Silver City application. It was determined
that Chairperson Barlow would chair this day's public testimony, and
that Boardmembers Grden and Wheeler will meet with Mr. Henderson on
July 28th to determine who would chair the remainder of the hearing
The City Clerk swore in those that wished to give testimony.
Chairperson Barlow noted that this was an application by the Silver
City Mobilehome Lodge for a rent increase and a reduction in services.
Dennis Law, representative of the Silver City Park spoke
first, and generally explained the application and the associated
exhibits. Mr. Law was asked questions about the application and his
testimony by Mr. Henderson, Chairperson Barlow, and Boardmember Grden.
Wallace Chism, part owner of the Silver City Park spoke next.
Mr. Chism described his involvement with the park which began in 1959.
MHRRB
7-17-86
SILVER CITY APPLICATION CON'T PAGE 2
Mr. Chism noted the expansions and improvements to the park,
and the nature of his involvement with the park.
Mr. Law asked questions of Mr. Chism, and after a while Mr.
Chism was asked questions by Boardmembers Wright, label, Grden,
Chairperson Barlow, and Steve Henderson.
A ten minute recess was called at 3:15p.m. After the recess
Mr. Chism was asked questions by Mr. Opland, the attorney for the
tenants, and by Boardmembers.
Recently, Kent Waters, a real estate appraiser, who had been
employed by the Silver City Park to estimate the value of the park in
1982 and 1985. Mr. Waters gave his educational and professional
background, and explained the methods used to appraise the value of
the park and the findings that he reached. Mr. Waters answered
questions from the Boardmembers and Mr. Henderson. Mr. Opland deferred
any questions until the next meeting.
Chairperson closed the Silver City hearing. and turned the
attention of the board to other business.
IV OTHER BUSINESS
The Board discussed the agenda items, definition of surcharge,
the rewording of the powers and duties of the Board as it is found in
the Ordinance, adjustment of the CPI, and the need for action with
regards to the correspondence received. It was agreed that adjustments
of the CPI and Ordinance would be tabled until the completion of the
Silver City Hearings.
V. ADJOURN
The meeting of the Mobilehome Rent Review Board was adjourned
at 4:50p.m. The next meeting of the Mobilehome Rent Review Board is
scheduled for Thursday, August 7th, 1986; 1:30p.m.-5:00p.m. At that
time the application by the Silver City Mobilehome Lodge will be taken
up again.
Respectfully Submitted_
W A Sloan Clerk to The Board