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HomeMy WebLinkAbout06-05-1986 MHRRB Minutesrumi��IIIP��'III�y�IQ'ill city of sAn lois oaspo 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