Loading...
HomeMy WebLinkAbout1986-07-21 RRC Minutes • MINUTES PALM DESERT RENT REVIEW COMMISSION MONDAY, JULY 21, 1986 CIVIC CENTER COUNCIL CHAMBER * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * I. CALL TO ORDER Vice Chairman Gibbs convened the meeting at 4:10 p.m. II. PLEDGE OF ALLEGIANCE - Commissioner Isbell III. ROLL CALL Present: Excused Absence: Vice Chairman Joseph Gibbs Chairman Sabby Jonathan Commissioner Lois Graham Commissioner Michael Isbell Commissioner Patricia Power Also Present: David J. Erwin, City Attorney Jean M. Benson, Council Liaison Sheila R. Gilligan, City Clerk/P.I.0. Mary P. Frazier, Secretary IV. NEW BUSINESS A. CONSIDERATION of Continuation of J. K. Moran as Hearing Officer. Mr. Erwin stated that Mr. J. K. Moran had been appointed as hearing officer in the Indian Springs Mobilehome Park hardship rent increase petition. He said that the ordinance provides that the hearing officer shall be impartial, and the impartiality of Mr. Moran had been questioned by the owner of Indian Springs Mobilehome Park. Mr. Erwin suggested that testimony be given in the following order: 1) Park owner or his representative; 2) Representative of the park tenants; and 3) Mr. Moran. The Commission would then make a determination as to whether or not Mr. Moran will continue as the hearing officer. If Mr. Moran 0 IL MINUTES PALM DESERT RENT REVIEW COMMISSION JULY 21, 1986 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * was removed, the Commission would also need to determine who the new hearing officer would be for the purpose of this petition. Vice Chairman Gibbs verified that each Commissioner member had received and reviewed the following: 1) July 9, 1986, letter from the firm of Best, Best & Krieger; 2) July 1, 1986, letter from Mr. J. K. Moran; 3) July 15, 1986, letter from Mr. Loren Steward, President of Indian Springs Mobilehome Owners Association. He invited testimony from the park owner or his representative. MR. PAUL SELZER of Best, Best & Krieger, stated that he represented the park owner, Mr. Jim Goldstein. He reviewed in detail his letter dated July 9, 1986. He added that he felt it would be in the best interests of everyone concerned to start with a hearing officer acceptable to both parties. Upon question by Vice Chairman Gibbs, Mr. Selzer responded that Mr. Goldstein had advised him that Mr. Moran had previously represented an owner of a park in a similar petition for hardship rent increase. He added that Mrs. Gilligan had also indicated to him early on that she believed Mr. Moran had represented both tenants and landlords. However, she later found out that he had not, and she advised him of this finding. Vice Chairman Gibbs invited testimony from the tenant representative. MR. LOREN STEWARD, President of Indian Springs Mobilehome Owners Association, reviewed his letter dated July 15, 1986. He added that he felt Mr. Moran would be a fair and impartial hearing officer. Vice Chairman Gibbs invited testimony from the hearing officer. MR. J. K. MORAN stated he felt the park owner had overreacted to his letter dated July 1, 1986. He had spoken with the previous hearing officer and attempted to stay with what he had previously requested. He felt the word "sharp" does not indicate any bias on his part. As to the question of the base year, in his discussions with the previous hearing officer, he felt it had not been discussed fully, especially in light of the new ordinance. He felt that any issue in the new case was open for discussion, and he could not find anything in the ordinance which "grandfathers" anything from one hearing to the other. He added that he had not indicated which way he would decide the hearing and felt that it was the duty of the hearing officer or judge to put forth a little extra effort to make sure the issues are presented properly when one party is not represented by an attorney. In case the Commission had any feelings about opening up the base year issue, his intent was to indicate two recommendations as a result of the hearing: 1) If he was persuaded that the base year was inappropriate and a new base year figure was in order, he would make a recommendation along that line; 2) At the same time, since the Commission had already dealt with 2 MINUTES PALM DESERT RENT REVIEW COMMISSION JULY 21, 1986 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * that issue on two occasions, there would be a second recommendation leaving the base year as it was. Upon question by Commissioner Isbell, Mr. Moran responded that he had not represented park owners or tenants in any rent control decisions. However, he had been Assistant City Attorney for the City of Palm Springs for six and a half years. During that time, he drafted the first mobilehome rent control ordinance and served as counsel to the Rent Review Commission. Upon question by Commissioner Graham, Mr. Moran responded that he had received a call from the City Clerk asking if he would be interested in serving as hearing officer. Upon question by Vice Chairman Gibbs, Mr. Moran responded that the figures he had used were from documentation submitted in the hardship rent increase petition. In response to Mr. Moran's statement that it was the duty of the hearing officer or judge to put forth a little extra effort to make sure the issues were presented properly when one party is not represented by an attorney, Mr. Selzer stated that in at least one previous Indian Springs case the tenants were represented by Attorney Toni Healey. He added that he felt an important fact was that this matter had gone to court and beyond the Rent Review Commission, and the question of constitutionality had never been raised by anyone. Vice Chairman Gibbs closed the meeting to public comment and asked for the Commissioners' comments. Commissioner Power stated she felt Mr. Moran's letter made it appear he had less expertise than might be expected of someone with that much rent review experience. However, she did not believe there was anything indicating that he was biased. Commissioner Isbell stated he could find no basis for a finding of bias on the part of Mr. Moran. Commissioner Graham felt that Mr. Moran was an honest individual, and she could find no basis for bias. However, she felt it might be in the best interests of everyone concerned to appoint a new hearing officer acceptable to both sides. Vice Chairman Gibbs stated he could not find any evidence of bias. However, as indicated by several of the Commissioners, the tenor of the letter did cause some concern. He felt Mr. Moran may have been too conscientious and overzealous in trying to be sure the tenants were duly represented. However, he felt Mr. Moran was getting into areas which should not be dealt with until the Commission meets after the evidentiary 3 MINUTES PALM DESERT RENT REVIEW COMMISSION JULY 21, 1986 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * hearing stage. He agreed that it might be better at this point to select a new hearing officer. Mr. Erwin advised the Commission that it had several alternatives. It could, without reflecting on Mr. Moran, try to come up with a slate of three different names and see if any of them were acceptable to both parties. Upon question by Commissioner Power, Mr. Erwin responded that Mr. Moran's name would be one of the three. Vice Chairman Gibbs reminded the Commission that it first needed to determine whether or not there was sufficient evidence of bias on the part of Mr. Moran, and then it could decide whether or not he should be retained as hearing officer. The Commission concurred that there was not sufficient evidence. After considerable discussion, the Commission agreed to continue this matter for two weeks. Mr. Erwin was directed to work with the park owner and tenants to find a mutually acceptable hearing officer. If they were unable to do so, the Commission would appoint one for this case at its ajourned meeting of August 4, 1986. V. ADJOURNMENT With Commission concurrence, Vice Chairman Gibbs adjourned the meeting at 5:05 p.m. to Monday, August 4, 1986, at 4:00 p.m. RESPECTFULLY SUBMITTED, 1.): Cl.1..A..- C-- ._ MARY P. F ZIER, SECRETARY 4