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HomeMy WebLinkAbout1992-12-18 RRC Minutes MINUTES PALM DESERT RENT REVIEW COMMISSION MEETING FRIDAY, DECEMBER 18, 1992 2:00 P.M. CIVIC CENTER COUNCIL CHAMBER * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * I. CALL TO ORDER Chairman White convened the meeting at 2:00 p.m. II. ROLL CALL Present: Commissioner Jim Ainsworth Commissioner Robert Coates Vice Chairman Joyce Wade-Maltais Chairman Randall White Also Present: Marshall S. Rudolph, Deputy City Attorney Sheila R. Gilligan, City Clerk/Public Information Officer Mary P. Frazier, Deputy City Clerk III. ORAL COMMUNICATIONS None IV. RESOLUTIONS A. RESOLUTION NO. RRC-1 - A RESOLUTION OF THE PALM DESERT MOBILE HOME PARK RENT REVIEW BOARD AMENDING SECTION 101 OF THE RENT REVIEW BOARD GUIDELINES FOR HARDSHIP RENT INCREASES. Mr. Rudolph noted that there were currently in the Rent Review Ordinance and Guidelines two forms of rent increases: 1) Automatic 75% of the CPI increase annually; 2) optional hardship increase by petitioning the Rent Review Commission. He said this resolution would amend Section 101 of the Rent Review Board Guidelines and allow a second form of hardship rent increase petition to be filed. This second type would be a more discretionary increase that would allow the Commission to hear evidence relative to fair return, and the decision to grant or not grant the increase would be up to the Rent Review Commission. MINUTES PALM DESERT RENT REVII ;OMMISSION MEETING DECEMBER 18, 1992 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * Upon question by Commissioner Coates, Mr. Rudolph stated that with the discretionary hardship rent increase, petitions would be filed as usual, and the park owner would be allowed to present a case to the Board that for whatever reason they were not receiving a fair return on their property. He noted that without this discretionary element, the guidelines could be challenged because someone could seek to avoid petitioning the Board at all on the theory that it would be futile to go to the Board for an increase and would instead go directly to court. This new resolution would force them to have to go through this procedure first before going to the courts. Upon question by Commission Wade-Maltais with regard to notifying residents of the filing of the petition, Mr. Rudolph responded that it was the park owner's responsibility to do so, just as it is currently. Commissioner Coates expressed concern with the lack of a specific time limit for notifying residents, especially since many are part time residents who come here for the season, and it might take some time to get notices to those who are out of town if the hearing takes place during the summer months. Commission Wade-Maltais suggested adding some type of wording that would require that reasonable notice be given to tenants. Mrs. Gilligan stated that when the applicant (park owners or residents) file petitions for hardship increases, they must submit an affidavit that they have notified all of the residents in the park. It is at that point that the City Clerk's Office sets the hearing, and there are 21 to 30 days before the hearing is held. She said notification has not been a problem in the past because we make sure administratively that that happens. Chairman White asked whether there was some case law that saggests that this language is appropriate in our ordinance and whether there were other ordinances which had adopted this or similar language in California. Mr. Rudolph responded that the intent of this new section was deri Ni' from recent cases. In addition, he said there were other jurisdictions that have amended their guidelines to provide this discretionary option. Chairman White asked whether it would be appropriate for the Rent Review Commission to suggest additional language or that certain language be changed. Mr. Rudolph responded that the Commission will be adopting the resolution; if for some reason it is unsatisfactory, it is entirely within the Commission's authority to change the language or add language to it. Chairman White asked whether there was a provision to provide notice to landlords and tenants when there is a proposed change in the ordinance. He asked if there had been notice given to all interested parties, and Mrs. Gilligan responded that there had. Chairman White stated he agreed with Commissioner Wade-Maltais that we need to make it clear that reasonable notice is required, and perhaps language 2 MINUTES PALM DESERT RENT REVIE OMMISSION MEETING DECEMBER 18, 1992 * * * * * * * * * * * gr * * * * * * * * * * * * * * * * * needed to be added that would indicate a minimum notice of a specific time period is required to constitute "reasonable notice" to all residents, and that should be actual notice. He noted that Section C of the resolution indicated that "Landlords shall notify residents of the hearing date once it has been set." He said there had been times when tenants complained that they have not received actual notice or have not received reasonable notice, in that the notice provided to them was either posted or provided to their local address when they are part-time residents. He suggested amending the resolution to read "Landlords shall provide actual notice to all residents a minimum of 14 days in advance of the hearing date once it is set." Commissioner Coates said he felt 14 days might be too short a time frame. Upon question by Commissioner Wade-Maltais, Mrs. Gilligan responded that State law requires notice of 10 to 15 days; we are providing administratively a 21-day minimum notice and sometimes 30 days. Commissioner Wade-Maltais moved to amend Section C of Resolution No. RRC-1 to read as follows: "Landlords shall provide actual notice to all residents a minimum of 15 days in advance of the hearing date once it is set." Motion was seconded by Commissioner Coates and carried by unanimous vote. Commissioner Ainsworth stated he felt the Board was formed primarily for the protection of the residents of the parks, and this seemed to him that it was leaning more towards the landlord. He expressed concern with removing the words "unless otherwise prescribed by law" from the first paragraph of Section 101. Commissioner Coates stated that the way he read these words was that unless it is prohibited by some other law, and he did not see any problem with this. Mr. Rudolph responded that he did not see any significance that would be lost by deleting this wording; however, if the Commission would feel more comfortable with the wording, it could be put back in. Commissioner Wade-Maltais stated that in cleaning up the language of the ordinance, this particular language was felt to be redundant, and she agreed. Commissioners Coates and White also agreed. Commissioner Coates moved to waive further reading and adopt Resolution No. RRC-1 as amended above. Motion was seconded by Comissioner Wade-Maltais and carried by unanimous vote. 3 ' MINUTES PALM DESERT yyRENTy RyyEVaII ;OMMyISSySIayONa MEETING+ yy yy aa yy y yDE+CaEMyBEyyR aa18a, 1992+yyy T T T T T T T * T T T T T * T T T T T T * T * T T 7. T T T T T T T T T T T T V. ADJOURNMENT Upon motion by Wade-Maltais, second by Coates, and unanimous vote of the Rent Review Commissioners, Chairman White adjourned the meeting at 2:45 p.m. RESPECTFULLY SUBMITTED, AR -f- *•Q.-2--6 MARY P. Fk IER, SECRETARY 4