Mobile Home Rent Control Board

MINUTES CHICOPEE MOBILEHOME RENT CONTROL BOARD JANUARY 25, 2010 @ 6:00 P.M. MEMBERS PRESENT Robert Hopkins, Sharyn Riley, Ronald Lafond ALSO PRESENT Thomas Rooke, Attorney Chantal Paul, Secretary to the Board OLD BUSINESS Robert Hopkins: Attorney Thomas Rooke is filling in for Attorney Kevin Corridan. We have to accept the minutes of the December 21, 2009 meeting. Do we have a motion to accept the minutes? Ronald Lafond: I make a motion. Sharyn Riley I second. Robert Hopkins: Motion passed unanimously. Robert Hopkins: The first order of business this evening is the S&M Bluebird proposal for rent control. This is the hearing night for their proposal filed several months ago. According to Rule 3 of the rules there should be a hearing before the Board regarding all requests for adjustments of rent. Bob continues to read Rule 3… Mark, would you like to speak to the issue? Marc Dugre: We have provided the package the Board and to the tenants (inaudible)… Robert Hopkins: Okay Mr. Dugre, thank you. Any tenants wish to cross-examine Mr. Dugre, or ask any questions about the proposal? (no response from tenants) Okay, you’ve completed your presentation I presume, Mr. Dugre? Marc Dugre: Yes. Robert Hopkins: The tenant’s have no representation tonight or don’t wish to speak to the issues? Tenant: Yes. Robert Hopkins: Please state your name for the record. 1 Tenant: Dick Elliot… President of the Association. We are not here to fight him, I’m here to report on all phone calls, I want to be on record that I did …everything is going up but their income is going down. They wanted me to voice their opinion. I know the increase has to be had but I just wanted to go on record that with the cost of everything going up, their not getting any increases for two years. That’s about all I have to say on behalf of the tenants. Robert Hopkins: Okay, thank you very much for presenting that. Apparently the park owners and the tenants have presented their presentation and rebuttal from the mobilehome park. Marc Dugre: The only thing I would like to say is the park needs to survive so…when you look at tax return for 2008, there is a $35,000.00 loss. Robert Hopkins: For the record we have previously read the rules of operation here so I consider that as having been read into the record. If there is no further input from the tenants or from the park owners, we need a motion to discuss the proposal from S&M Bluebird. Sharyn Riley: I would like a motion to discuss because I have just one or two quick questions. I have a question on the health insurance, just for my own knowledge. How do we go about selecting the health insurance? Is that something you go out and look for at the best rate or… Stanley Grochmal: We shop (inaudible). Sharyn Riley: So you have looked at other places, other than Blue Cross. The other question that I have is on the vehicle gas and oil. How does that work? The vehicles that you use, are those strictly business vehicles? Stanley Grochmal: Yes. Robert Hopkins: I don’t have any questions, I have looked over the material so if you want to make a motion to proceed I will entertain that motion. Ronald Lafond: I make a motion. Robert Hopkins: Okay, so the motion is to accept the $7.00 increase as delineated by S&M Bluebird. Sharyn Riley: I second. Robert Hopkins: Any discussion on that motion? Board: None. 2 Robert Hopkins: Hearing none, all those in favor? Board: I. Robert Hopkins: Motion passes unanimously. Robert Hopkins: Counselor, they have to give notice, right? Thomas Rooke: Correct, it would be March 1st assuming that those notices go out this Friday. Robert Hopkins: The second part is that we usually make a decision is we have the opportunity to ban them from coming back up to a period of two years which is an option we have. It’s at my discretion, but frankly, I think coming back more frequently results in less steep increases to the tenants. Does anyone want to make a motion to invoke that two year rule or no. Board: No. Robert Hopkins: Okay, so we will allow you to come back next year. Stanley Grochmal: What I wanted to ask the Board is about the copying costs. Robert Hopkins: There is a provision that we can undertake consideration to have the other copying costs charged as well. Stanley Grochmal: I am asking for the future, if there is any way we can… Robert Hopkins: It’s in Rule 2, Part 4 which says “if you bring forward those costs, they can be included in the rent increase. If you don’t have the information tonight, next time would be a better time, especially after we voted on the increase. I think it’s pretty clear that all the tenants have to be notified, correct Tom? Thomas Rooke: Correct, the only other option would be if each tenant came into your office and signed an acknowledge, but legally, with all due respect to Mr. Elliot, you cannot rely upon Mr. Elliot or someone else to go door to door “we hereby acknowledge”. Time is of the essence and those letters should be sent out immediately, I would send them out tomorrow. Robert Hopkins: I wouldn’t have a problem with it if he had documentation tonight as to what the costs were and then a discussion with the Board members how to spread that out. My opinion, this time no, next time, if you bring it up beforehand I would be happy to take it under advisement. Tenant: (Inaudible). 3 Robert Hopkins: I think the reasonable thing is to come back in one year, no sooner than that. I think that the park presented a very clear cut explanation of the need for the increase. Tenant: So they can come back in one year from March? Robert Hopkins: Right. The Board may undertake a revision of some of the Rules but we don’t want to change the Rules in midstream, such as the initial meeting request may not have to be at an actual meeting, if we change our rules, the Law Department stamps it in, that would save thirty days. S&M, Bluebird, we thank you. Next item on the agenda is Westover Mobilehome Park. Likewise, Mr. Dugre represents the Westover Mobilehome Park. Tenant: It is not 7:00 yet. The meeting is suppose to start at 7:00. Robert Hopkins: Yes, you’re right. Let’s adjourn for 10 minutes. We adjourned for 10 minutes, the agenda calls for a 7 p.m. consideration of the Westover Trailer Park, Inc. proposal for rent increase. This evening is the hearing for the rent increase for the Westover Trailer Park as submitted previously. Mr. Marc Dugre is representing Westover Trailer Park as well as the owner, Mr. Mathieu is present tonight. First of all the hearing shall proceed as under Rule 3, Part 1, “the owner of his designee shall proceed first” Mr. Dugre, are you going to speak to the issue? Marc Dugre: Yes, (inaudible)…This increase proposal was based on the same method as we did at the last increase. That became effective in October 2007. That increase actually began in September of 2006, it was delayed because (inaudible)…this increase, as I said, is the same, we are using the same three items, real estate tax, water and sewer fees and trash disposal fees. As our package illustrated, those items increased. Since the last few years the park has spent approximately $40,000.00 to upgrade the sewer system and the water line. That’s a huge expense. I know $20.00 seems like a lot. The park has some real financial difficulty over the last several years. This is just asking to get to bring it to where it was a few years ago. Lastly, the last increase was in October 2007, prior to that it was May of 1998. At that point the rent was $204.89, so when you consider going back to 1998, brining your rent not to $250.00, if you took that increase and divided it by the period of years, approximately an 11 ½ year period, the annual increase is like $3.94 per year 1.92%. So we are asking for an increase from $230.00 to $250.00 per month. Robert Hopkins: Your figures, Mr. Durge, on the 1.92%, was that an annual increase. Marc Dugre: Right, from 1998 until now… Robert Hopkins: So the average annual increase would have been 1.92%> 4 Marc Dugre: Correct. Robert Hopkins: Now, if the owners have finished their presentation, would any tenants like to speak to the proposal from Westover Trailer Park? Thomas Rooke: Please identify yourself for the record. Tenant (name & address inaudible) The only problem we have with this increase is it’s a big raise, with the way the economy is going and everything, we are not the biggest trailer park and not the best looking. He cannot keep up with the park. Those water lines break every year. The landlord has to take care of that stuff. All he does is plow and cut all the trees. That’s the only reason we are hollering at a $20.00 raise. It’s hard for everybody; there are a lot of senior citizens there. Every year it keeps going up. Robert Hopkins: Any other comments from tenants about the rent increase proposal. Tenants: No comments. Robert Hopkins: Okay, with both sides having completed discussion, does the Board wish to ask any questions of either the park or the tenants before we take a motion? Ronald Lafond: I think it’s pretty cut and dry. Robert Hopkins: Okay, then if there are no specific questions or rebuttals then I suggest that we make a motion and discuss the proposal. Ronald Lafond: I make a motion. Robert Hopkins: Make a motion to accept the rent increase as proposed? Is that the motion? Ronald Lafond: Yes. Robert Hopkins: Do we have a second? Sharyn Riley: Yes, second. Robert Hopkins: Very well, motion is made and seconded that the proposal as submitted by Westover Trailer Park asking for an increase of $20.00 per tenant per month based upon the real estate, sewer and water and trash increases be permitted. Do we have any discussion on the motion? Board: No. Robert Hopkins: Hearing no discussion, no rebuttal, no additional information, all those in favor of adopting? 5 Board: Yes, we accept. Robert Hopkins: Okay, motion carries, a $20.00 rent increase is allowed. Motion passes unanimously. Tenant: How come they don’t have separate meters for each trailer? Out west, every trailer park has their own meter, every trailer has their own water meter. Robert Hopkins: Mr. Matheiu, do you have an answer for that? Mr. Matheiu: The Attorney General will not allow it. Robert Hopkins: So you can’t individually meter for mobilehome parks, according to the Sate Attorney General. Mr. Matheiu said, and I don’t know if this is accurate, I’ll just repeat what he said “the Attorney General would not allow it for mobilehome parks in Massachusetts. I do know that, none of the parks in Chicopee had meters. Likewise, as we said in the previous decision to be reached, we can prohibit the park from coming forward for up to two years. The previous park we had them come back in one year. Do we want to invoke either of those. Sharyn Riley: We are not going to limit them. Robert Hopkins: So we shall not limit you to the two year period, you can come back before that. Tenant: Can we have the minutes. Thomas Rooke: Clerk’s Office. Marc Dugre: Rent increase is March 1st? Robert Hopkins: Counselor, they have to put the notice out right away, right? Thomas Rooke: I would urge you to send out your notices tomorrow, post-marked tomorrow. Robert Hopkins: Rent increase can’t take place until March 1st, and it is not retroactive. Thomas Rooke: It has to be a full thirty day notice, post-marked. Robert Hopkins: Do we have any new business to come before us tonight? 6  If there is no new business, do we have a motion to adjourn? Chantal Paul: Do you want to tell Marcia Stemm that we received her material? Robert Hopkins: Oh yes, before we adjourn, I would just like to make note that we received the proposal from Marcia Stemm from Mobilehome Parks, Inc. that have been received in the office. The hearing is March 22nd @ 6:00 p.m. Robert Hopkins: Motion to adjourn at 7:26 p.m. 7