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Viineyard Mobile Villa, 3263 Vineyard Avenue; Hacienda Mobile Home Park,
3231 Vineyard Avenue; Fairview Trailer Park, 785 Rose Avenue; and Pleasanton
Mobile Home Park 4202 Stanley Blvd.
1
THE HACKER
The Newsletter of
Pleasanton Mobile Home Park
6-12-95
The newest space rent survey for Pleasanton Mobile Home Park has been completed.
This new survey will be provided to the Honorable Judge Rebecca Westerfield at the
Administrative Hearing for Wagner’ Base Year Rent Petition 6-15-95.
To obtain a better understanding of what has happened here in Pleasanton Mobile
Home Park “The Hacker” will include a brief history of the old Agreement Providing for
the Stabilization of Mobile Home Space Rents, which stabilized the space rents for
Pleasanton Mobile Home park, including the RV spaces, and the ordinance that
Pleasanton City Council passed to replace the old Agreement; as Jerry Wagner, the
new owner of Pleasanton Mobile Home Park, refused to sign the new Agreement that
had been negotiated in the “Summer and Fall of 1991" in lieu of a rent survey for the
three other parks in Pleasanton.
I. History of the Agreement Providing for the Stabilization of Mobile
Home Space Rents for Pleasanton Mobile Home Park.
Pleasanton Staff Report 8B, dated 8-18-92, States, “In response to concerns expressed
by tenants within the City of Pleasanton’s four mobilehome parks
1
that mobile home
space rents had been increasing at a rate faster than the cost of living, and in further
recognition that most of the tenants within the parks were seniors, many of whom were
living on fixed incomes, Pleasanton City Council in 1987 introduced a mobile home rent
control ordinance.” This Pleasanton Staff Report includes a copy of the new 1992
Agreement between the City of Pleasanton and the other park owners.
As part of this discovery process before the formulation of the old Agreement between
the park owners, park residents, and the City of Pleasanton, Pleasanton Mobile Home
Park’s residents submitted a petition, dated 3-17-87, to the Alameda County Board of
Supervisors and the State of California Department of Housing & Community
Development. This petition, in part, complained that D. E. “Ozzie” Ozbirn, the previous
owner of Pleasanton Mobile Home Park, had raised the space rents in Pleasanton
Mobile Home Park in excess of 5% since 1984 without a commensurate performance of
maintenance. This petition was attached to Pleasanton Staff Report 6A, dated 1-19-88,
and Pleasanton Staff Report 5C, dated 10-20-87.
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In Pleasanton Staff Report 6A, 1-19-88, it indicates that there was a 9-21-87 meeting
between teams of negotiators for each side and Pleasanton’s City Manager and City
Attorney: “The park owners made an early concession and showed good faith by
agreeing to withhold their usual end of the year announcements of rent increases while
negotiations were continuing between the park owners and the mobile home owners in
the four mobile home parks. The mobile home owners made a major concession and
matched the park owners’ good faith by agreeing to work toward a contractual
agreement between the parties rather than to pursue a rent control ordinance.”
Attachments to these Staff Reports indicate that the Western Mobilehome Association,
the parkowner PAC, was providing input to the City.
However, Pleasanton Staff Report 6A indicates that there was a special situation
hanging over Pleasanton Mobile Home Park. Ozzie Ozbirn, previous owner of
Pleasanton Mobile Home Park, conditioned his support of the Agreement on the City of
Pleasanton initiating discussions with him regarding its plans for the Del Valley Parkway
extension. The Del Valle Parkway extension, a proposed roadway in the Pleasanton
General Plan, would take part of Pleasanton Mobile Home Park, via Eminent Domain
effecting a condemnation. Staff Report 6A, dated 1-19-88, indicated, amongst other
things: 1. Council designate a subcommittee and/or direct City Manager to initiate
discussions with Mr. Ozbirn regarding potential acquisition of right-of-way for Del Valle
parkway through Pleasanton Mobile Home Park. 2. Clearly, leases pursuant to the
Agreement will have to provide for possible acquisition of Del Valle Parkway right-of-
way from the Pleasanton Mobile Home Park.
As a result, Staff Report 12B, dated 4-19-88, was presented for consideration to
Pleasanton City Council. This Staff Report states on page 3, “In the case of Pleasanton
Mobile Home Park, there may be some economic advantage to work with the property
owner (Ozzie Ozbirn) to vacate the proposed right-of-way through attrition.” Whether
there was a conversion impact report pursuant to Government Codes 65863.7 &
66427.4or whether was a cost estimate for mitigating the acquisition of Pleasanton
Mobile Home Park is not known at this time. Ozzie Ozbirn is identified in the minutes of
the 4-19-88 Pleasanton City Council meeting as saying he wanted to turn Pleasanton
Mobile Home Park into an RV park. Recreational Vehicles, as defined by 799.24 of the
Civil Code and Section 18010 of the Health & Safety Code, are not subject to mitigation
in conversion ordinances. However, after nine months of continuous residency, certain
types of RVs can be redefined as mobilehomes under the Mobilehome Residency Law.
Pleasanton Staff Report 8B, dated 8-18-92, Indicates that Mr. Ozzie Ozbirn, the
previous owner of Pleasanton Mobile Home Park, considered many of the space rents
for Pleasanton Mobile Home Park to be significantly lower than those in the Fairview
Trailer Park, which is similar in many respects to Pleasanton Mobile Home Park.
Consequently, Mr. Ozbirn would not agree to enter into the Agreement unless he was
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granted a form of vacancy decontrol. That is, he requested to be allowed to raise rents
in his park to the level of Fairview’s rents, if there was a vacancy or transfer of
ownership, which had been sited in the original Agreement as $245.00/mo. The base
rent for Pleasanton Mobile Home Park included utilities. In order to reach agreement
Council agreed to that demand. This 1992 Staff Report, prepared by The City Attorney
for Pleasanton City Council for their consideration of an ordinance to replace the
Agreement, does not mention the Del Valle Parkway extension.
After these accommodations were afforded Ozbirn by Council, Ozbirn signed the 1-19-
88 Agreement. A certified copy of the original Agreement Providing for the Stabilization
of Mobile Home Space Rents obtained from the Alameda County Recorder’s Office
indicates in its notarized section that Leo “Red” Heckathorn, Pleasanton Mobile Home
Park’s Representative, signed the Agreement on 1-29-88. Kenneth R. Mercer,
Pleasanton’s Mayor at that time, signed on 1-26-88. However, D.E. “Ozzie” Ozbirn and
Mary Jane Ozbirn, owners of Pleasanton Mobile Home Park, did not sign the
Agreement until 7-12-88.
The “Corrected Copy: June 30, 1988”, Page B-4 of the 1-19-88 Agreement for
Pleasanton Mobile Home Park reflected the decontrol of space rents to $245.00/mo.,
upon sale or vacancy (utilities included), and designated 7 spaces as being RV spaces.
This page also indicates that the space rents for these RVs were controlled.
On 4-29-88 The Ozbirn’s sent out a rent increase notice for $6.00/mo. rent increase for
the Cost of Living and a Capital Improvement levy of $10.00/mo. amortized over five
years which included tree topping. Both increases took effect 7-01-88. Notices
concerning the two factors effecting Pleasanton Mobile Home Park, the Del Valle
Parkway extension and the Agreement, were sent out to the residents of Pleasanton
Mobile Home Park 7-26-88. The leases and portions of the live-in Manager’s logbook
concerning the RVs reflects this change for Pleasanton Mobile Home Park.
On 8-01-88, one six year resident of Pleasanton Mobile Home Park signed a new lease
which required that she move out of Pleasanton Mobile Home Park
However, there is evidence indicating that instead of decontrolling the base rents to
$245.00/mo. as had been agreed to and stipulated by the “Corrected Copy: June 30,
1988" page B-4 of the old Agreement; the base rents were being decontrolled to
$265.00/mo.
II. History of the Ordinance for Pleasanton Mobile Home Park.
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On 12-11-91 Jerry Wagner bought Pleasanton Mobile Home Park from D.E. “Ozzie”
Ozbirn, but refused to sign the newly negotiated Agreement Providing for the
Stabilization of Mobile Home Space Rents as Wagner felt the base space rents for
Pleasanton Mobile Home park were “below market”. The Deed of Trust with
Assignment of Rents for Pleasanton Mobile Home Park seems to indicate that Ozbirn is
carrying a $685,000.00 note for Pleasanton Mobile Home Park. A call placed to
Northwestern Title Company determined that no Deed of Reconveyance has been filed.
Any structure and terms of any note carried on Pleasanton Mobile Home Park has yet
to be illuminated and may be pertinent to the base year rent hearing 6-15-95.
Documents received by then Resident Representative Leo “Red” Heckathorn from
Wagner indicated that Wagner wished a stepped base space rent increase to
$306.20/mo. as of 9-01-91. Page 2 of Pleasanton Staff Report 8B, dated 8-18-92,
indicates that during the Summer and Fall of 1991, there were a number of meetings
between City staff, park owners, and tenants concerning the new agreement. In what
capacity and to what extent the ownership of Pleasanton Mobile Home Park (Wagner or
Ozbirn?) were involved in the talks between the park owners, park residents’
representatives, and the City of Pleasanton pursuant to the any rent survey and the new
Agreement; during this time period is not completely known.
Complicating this issue was the death of Pleasanton Mobile Home Park’s
Representative, Leo “Red” Heckathorn in the spring of 1992. A 3-12-92 letter to Jerry
Wagner by Hank Roberts, resident of space #26 and now deceased, indicates that
Roberts assumed the “duties as representatives of the residents” after Mr. Heckathorn’s
death. There has been some confusion concerning who was actually representing
Pleasanton Mobile Home Park’s residents. An election was held for Pleasanton Mobile
Home Park’s Representative in June of 1992. Thus, replacing Mr. Heckathorn and Mr.
Harold “Hank” Roberts, who had been acting as an interim park representative after Mr.
Heckathorn’s death.
When it was clearly determined at the 5-29-92 meeting of the Pleasanton Mobilehome
Committee that Wagner was trying to raise the space rents here in Pleasanton Mobile
Home Park, residents of Pleasanton Mobile Home Park went to Council to ask Council
to consider a space rent ordinance for Pleasanton Mobile Home Park to replace the
Agreement. Residents felt intimidated by Wagner.
As part of the procedure for consideration of an ordinance for Pleasanton Mobile Home
Park, The City of Pleasanton, in 1992, commissioned a survey to ensure that any rent
ordinance passed for Pleasanton Mobile Home Park was lawful as long as it would
provide the park owner a fair return. This survey, dated 10-27-92, was conducted by a
Cliff Shores, and consisted of color photographs, a locational map, etc.. The cost to the
City of Pleasanton $5,000.00. This survey indicated that the base space rents could be
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$325.00/mo. to $335.00/mo. for Pleasanton Mobile Home Park, including utilities. Mr.
Wagner’s attorney of record at that this date, a Mike McGuire, states in a 11-17-92 letter
to Michael Roush, Pleasanton City Attorney, “Now, with the results of Mr. Shores’ study
available, we believe that the comparative market rents may have been authoritively
established.” However, Mr. McGuire went to on to indicate Wagner’s space rents could
be valued at $375.00/mo. and therefore, should be adjusted to $345.00/mo.
Earlier, Jerry Wagner hired his own appraiser for a survey for Pleasanton Mobile Home
Park. This survey, dated 7-31-92, was conducted by Stanley P. Moenning, Class IV
Appraiser. Mr. Moenning concluded that the base space rent for Pleasanton Mobile
Home Park could be $320.00/mo. to $330.00/mo., including utilities. Wagner’s Attorney
of record at that time, Christopher Schlies, refers to this survey in a 8-08-92 letter to
Michael Roush, Pleasanton City Attorney. Mr. Schlies states, “This document provides
an adequate and fair analysis on which basis reasonable parties should be able to
negotiate an agreement to set rents at the Pleasanton Mobile Home Park.”
After negotiations with the Pleasanton Mobilehome Committee in December of 1992,
sequestering the residents and their representatives away from the Pleasanton
Mobilehome Committee, the resident representatives relented and offered to accept
increasing the base space rents to $325.00/mo., including utilities, in the newly
renegotiated Agreement. However, Wagner would still not sign the Agreement and as a
result, Council passed the space rent ordinance #1588 for Pleasanton Mobile Home
Park 2-03-93.
On 7-02-93 Wagner sent the City of Pleasanton a letter requesting a base year
adjustment. At that time the ordinance did not contain procedures to adjust base year
rents. On 10-11-93, after Wagner sent several other letters complaining about
requirements to submit “fair return” data and the filing fee of $7500.00 for the “fair
return” petition, the ordinance was amended by Pleasanton City Council to contain
procedures to adjust the base year space rents. It was at this special Pleasanton City
Council meeting that the “Resident” Representative for Pleasanton Mobile Home Park
read to Council the minutes of the 4-19-88 Pleasanton City Council meeting where D.E.
Ozbirn, Wagner’s predecessor in interest, is indicated by these minutes as saying that
he wishes to turn Pleasanton Mobile Home Park into an RV park.
Subsequently, Wagner still filed suit claiming that the City’s delay between the time he
submitted his request for the base year hearing and the date the ordinance was
amended and that the filing fee was $7500.00; this constituted a denial of his base year
petition, 7-02-93, even though Wagner did not file suit until after the ordinance was
amended. Wagner’s suit was dismissed by William H. Orrick U.S. District Judge. Orrick
stated that Wagner’s as-applied challenges to the ordinance based on due process and
equal protection were not ripe and that the ordinance was constitutional.
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Wagner’s suit in Federal Court indicates in several places (Sections 27a., and 66a.) that
the rents for Pleasanton Mobile Home park was “rolled back” to 1-01-92. This has been
the cause for confusion as: 1. The old Agreement provided a mechanism for annual
space rent increases, using the August CPI, and in accordance with the Mobilehome
Residency Law. As a result there was an orderly increase in the base space rent as of
1-01-92. 2. The resident’s representatives at negotiations between parties had
relented and had indicated that they would accept a rent increase to $325.00/mo. per
the Shore’s survey. However, Wagner still refused to sign the Agreement and Council
passed the ordinance. Wagner’s suit, filed in Federal Court, does not seem to indicate
this scenario. Now, Wagner is asking for $393.00/mo.
Further, Wagner could at his discretion adjust the base rent via the ordinance but did
not choose to do so until January of 1994. After the time frame sited in the
Schenberger, Taylor, McCormick, & Jecker survey for Pleasanton Mobile Home Park,
1/92 to 3/93, which is being utilizing for Wagner’s Base Year Rent petition; Wagner
subsequently reduced the base rent by separating out the Garbage and Sewer Utilities
from the base space rent. Currently $17.48/mo. Then Wagner subsequently adjusted
the base space rents by 5% for both 1992 and 1993. Utilizing not the adjusted base
rents, ex-utilities, but instead used the old 1-01-92 base rents for calculations. In the
one clear case available the 1-01-92 base space rent for the mobilehome in space #24,
ex-utilities, was $286.07/mo. However, $302.11 was the base rent used for the annual
rent adjustment.
Further, the annual adjustments for 1992, 1993, and 1994 via Formula B for the
ordinance was capped at 5%. Under Formula B the ordinance allows for pass through
of operating expenses, cost of living, and government related expenses. The Capital
Improvement for the laundry room was passed through as of 6-01-94. It is not clear at
this time what these expenses were or how they were applied. Further, it appears as if
one rent increase notice was superseded by another. The Pleasanton Mobilehome
Committee will be asked to study the rent increases as well as Capital Improvement III.
As a result, the base space rents being studies for the Base Year Rent Hearing may be
flawed.
These “adjusted” space rents appear in Schedule B & C in Wagner’s petition to adjust
the Base Year Rents for Pleasanton Mobile Home Park.
-----
The newest space rent survey for Pleasanton Mobile Home Park has been completed.
For comparison, listed below are the 1-01-92 base space rents for Pleasanton Mobile
Home Park listed in the ordinance. Zero vacancy is assumed. Utilities for garbage and
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sewer are part of the base rents.
EXHIBIT “A”
PLEASANTON MOBILE HOME PARK
Monthly Rents as of January 1, 1992
Space No.
1 $277.03
2 $302.11
3 $222.31
4 $222.31
5 $302.11
6 $230.99
7 $302.11
8 $222.31
9 $302.11
10 $302.11
11 $222.31
12 $230.29
12A $222.31
13 $222.31
14 $222.31
15 $302.11
16 $222.31
17 $302.11
18 $222.31
19 $277.03
20 $222.31
21 $302.11
22 $302.11
23 $302.11
24 $302.11
25 $222.31
26 $230.29
27 $222.31
28 $302.11
29 $302.11
30 $222.31
31 $222.31
The total gross space rent income is $8284.70/mo. for an average base space rent of
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$258.90 per space using 32 spaces. All spaces were controlled by the old contractual
agreement, including those designated as being “RV” spaces by page B-4 “Corrected
Copy: June 30, 1988" of the 1-19-88 Agreement.
Listed below are the base rents surveyed 6-15-95 for the tenants of all spaces in
Pleasanton Mobile Home Park. Since the time of the Agreement and the passage of
the ordinance there has been quite a few changes in the park. Even if the de-controlled
rents are not subject for review it is important to obtain a perspective on what has
happened to Pleasanton Mobile Home Park since the passage of the ordinance 2-03-
93. All of the spaces for the other parks are controlled via the new contractual
Agreement, including RVs. Zero vacancy assumed. The utilities for garbage and sewer
have been factored back into the base rent.
EXHIBIT “A”
PLEASANTON MOBILE HOME PARK
Monthly Rents as of June 15, 1995
(All base space rents have utilities factored back in)
Space No.
1 $344.25
2
3
~$390.00
3
3
~$395.00
4
2
~$550.00
5 $371.91
6 $292.72
7
3
~$395.00
8
3
~$395.00
9 $371.91
10 $371.91
11
3
~$395.00
12 $292.72
12A $283.93
13 $283.93
14 $283.93
15
34
~$395.00
16 $283.93
17
3
~$395.00
18 $283.93
19 $344.25
20 $283.93
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21
34
~$395.00
22
3
~$395.00
23 $435.35
24 $371.91
25 $283.93
26
3
~$395.00
27
3
~$395.00
28 $371.91
29 $371.91
30 $283.93
31
2
$595.00
2
These units were bought by the park owner in 1992. From input supplied by
neighbors, utilities were not separated from base rents for #31. The mobilehome in
space #4 is the only double wide mobilehome in Pleasanton Mobile Home Park.
Utilities are not separated for this unit.
3
Utilities are not itemized per 798.41 of the Mobilehome Residency Law on rent
statements for these RVs. Some RV rents are estimated based on what other spaces
are paying.
4
Unoccupied. Rents are estimated to be the same for these RV spaces as compared
to the other RV spaces. All RV space rents are approximately $395.00/mo.
$11,647.19 is the gross monthly receipts for the base space rents as of 6-15-95. The
following is a summary of the changes that have affected Pleasanton Mobile Home Park
since the formation of the old Agreement and the passage of the ordinance for
Pleasanton Mobile Home Park to replace the old Agreement as Jerry Wagner, the new
owner of Pleasanton Mobile Home Park, would not sign the old Agreement.
1. The one change that has had the most significant impact on the community of
Pleasanton Mobile Home Park was that the space rents for the RVs are not stabilized
by the ordinance as they once were by the old Agreement. This fact was not clearly
made known until the 6-01-93 letter addressed to Timothy O’Hara, Wagner’s attorney of
record at that time, was written by Michael Roush, Pleasanton City Attorney. Before
this letter was written it was assumed by the “Resident” Representative that the rents for
all of the spaces would be stabilized. That the ordinance would replace the Agreement.
It did not.
2. What will happen to RVs that obtain residency times greater than nine months?
Would they then covered by the ordinance? If rent structures for a home defined as an
“RV” are contrary to the ordinance; after an “RV” obtains redefinition to “mobilehome” do
the occupants have legitimate grievances with the Pleasanton Mobilehome Committee?
If so, figuring out the proper rent structure could be a bookkeeper’s nightmare.
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3. 13 of the 32 available spaces in Pleasanton Mobile Home Park are now either RV
spaces or are mobilehomes owned outright by Wagner. Thus, these spaces are not
controlled by the ordinance. Two mobilehome were bought by the park owner. One
potential buyer of the mobilehome in space #31 complained of interference. After Hank
Roberts died, his mobilehome in space #26, car, and entire estate was bought by
Wagner for two months back rent. Wagner moved Hank’s mobilehome out of the park
and began renting to RVs. The Gonzales felt that Wagner interfered with the sale of
their home in space #3. Since they could not sell this mobilehome they gave it away.
4. First, Wagner only wanted $306.20/mo. per space in Pleasanton Mobile Home Park
as of 9-01-91. Two months before he officially bought the park? Then his own survey,
dated 7-31-92, indicated that the spaces in Pleasanton Mobile Home Park could be
rented for $330.00/mo. The survey the City’s of Pleasanton commissioned for the
ordinance basically indicated the same thing: That the base rents could be between
$325.00/mo. to $335.00/mo. Now, the most recent survey Wagner paid for indicates
that the base space rents could be $343.00/mo. Wagner’s lawsuit in Federal Court
asks specifically that Wagner obtain “the difference between the market rent of $378.00
per month, per space which reflects “general market conditions” and parkowner’s
average, regulated rent of $270.33. However, Wagner’s petition is now asking for
$393.00/mo. with no apparent authority supporting an argument asking for this
additional $50.00/mo. amount. Where does the extra $50.00/mo. come from?
5. It is not really clear what Wagner is asking for in his petition. Is he asking for a rent
increase to $393.00/mo. retroactive to 1-01-92, with the unpaid differential billed to the
residents or does Wagner just want this number used for all base rent calculations from
1-01-92 onward? If Wagner’s base year rent petition is successful, using $393.00/mo.
as a starting point for calculations, rents would all be $480.95/mo. as of 7-01-95. Next
would be the Fair Return Hearing allowing Wagner to pass through his costs. 1993?
The rent paid by the tenants of the mobilehomes owned by Wagner is the key in
determining what Wagner feels is market rents. The rents are now estimated to be
between $550.00/mo. and $595.00/mo. The higher the base rent goes, approaching
market rents for surrounding Pleasanton, the less economic incentive there is to
purchase a mobilehome in Pleasanton Mobile Home Park. Thus, effectively converting
spaces to RV status, closing the park.
6. The residents of Pleasanton Mobile Home Park ask Council for an ordinance to
protect residents from a rent hikes to $306.20/mo. as of 9-01-91. Now Wagner is using
the ordinance to obtain rent hikes to $393.00/mo. retroactive to 1-01-92! Is this to make
the controlled rents for the mobilehomes equivalent to the decontrolled rents of the
RVs?
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7. The base space rents and Capital Improvements for Pleasanton Mobile Home Park
have been flawed:
Space rent de-controlled by vacancy allowed by the old Agreement exceeded
that allowed under the old Agreement Providing for Stabilization of Mobile Home
Space Rents by $20.00. Since other mobilehome space rents were the same as
the surveyor’s this may hold true for all other base rents sited in Schedule B & C
with rents of $354.43 (with utilities removed). To get Ozbirn to sign the old
Agreement, 7-12-88, the City allowed a vacancy decontrol to $245.00/mo. and
RV spaces were apparently designated as such as part of the lease allowances
for the Del Valle Parkway. This has been deduced by reading Pleasanton Staff
Reports 8B, 8-19-92; Pleasanton Staff Report 6A, 1-18-88; and Pleasanton Staff
Report 12B, 4-19-88. Ozzie Ozbirn, contrary to his promise to Council,
decontrolled the base space rents to $265.00/mo. instead of $245.00 in at least
one mobilehome. The “Corrected Copy: June 30, 1988” page B-4 of the old
Agreement Providing for the Stabilization of Mobile Home Space Rents specified
RV spaces and the vacancy de-control to $245.00/mo. The original draft of this
Agreement, 1-19-88, did not have this stipulation. As Leo “Red” Heckathorn
signed the Agreement 1-28-88, the process by which these extra sections were
added to the base rent page B-4 of the Agreement is not clear. One of the tenant
representatives for the park at that time was in Florida when this occurred.
That there may have been a problem with Capital Improvement I as it included
tree topping. It appears as if Ozbirn was allowed to pass through a rent increase
and Capital Improvement I as of the 4-29-88 notification. Over two months before
he signed the Agreement? Since the 3-18-87 petition signed by residents
complained about items that were subsequently addressed, in part, by the
Capital Improvements for the roadway and fence could this petition be construed
as a majority vote? Greg Burton, the “Resident” Representative can find no
evidence of any itemization to residents or any resident voting on these Capital
Improvements, if applicable.
Pleasanton Mobile Home Park has passed through $10.00 for a roadway and
tree topping. $10.55 for a fence. Now $4.21 for a laundry room. For a combined
total of $24.76/mo. added to the base rent since 1988. The total combined cost
to the residents, including interest will be $44,305.92.
Wagner is passing through his costs associated with upgrading the laundry room,
which is his business and not a common area. Capital Improvement III.
Washing your clothes went from .50¢ to $1.00 per load. Drying your clothes
went from .10¢ to .75¢. to activate the machine. A combined increase, factoring
the same number of loads and drying time, of ~110%. And we are paying for
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the upgrade! This Capital Improvement may be contrary to section 6.60.050 of
the ordinance as the cost for this improvement exceeded $5,000.00, factoring in
interest costs. This $5,000.00 amount would require a vote by the residents.
The laundry is attached to the cottage, which underwent “substantial
improvements” in 1993. The cottage is not controlled.
Utilities were removed from the base rents after the time frame for the space rent
survey for Pleasanton Mobile Home Park, 1/92 to 3/93, by Wagner. Why?
Removing the utilities from the base rents would have several effects: 1.
Artificially lowering the “base rent”. Thus, enhancing the impression that the
disparity between any comparable rents used in any appraisal would look much
greater than they actually were. 2. Decrease Net Operating Income in any
Current Year used in any Fair Return Hearing. Thus, even if the base year
hearing was unsuccessful a rent increase could still be obtained at a Fair Return
Hearing. 3. Increase operating income as any increase in metered utilities
would automatically be passed through to the residents and no longer impact
income as the utilities would no longer be part of the base rent. Since the RVs
and park owned mobilehomes do not have garbage and sewer itemized
separately could this be further evidence that only those homes subject to the
ordinance had sewer and garbage removed via 798.41 of the Mobilehome
Residency Law; as any Base Year Rent Hearing would only concern those rental
units subject to a Maintenance-Net Operating Income rent ordinance?
The increases allowed by the ordinance were not passed through until after the
time frame of this survey and look suspect. The base space rent was lowered to
$286.07/mo. from 302.11/mo. in June and October of 1993 removing the utilities
for garbage and sewer. However, when the space rents were increased
subsequent to Wagner’s survey the base rents in extant before removing utilities,
was utilized for the COLA adjustment. What is the structure of the Formula B
operating expenses, cost of living, and government regulated expenses?
8. The RVs pay ~$395.00/mo. However, the RV’s and Wagner owned mobilehome rent
structure includes the utilities for garbage and sewer while the controlled mobilehomes
have had these two utilities broken out via 798.41 of the Mobilehome Residency Law.
According to Wagner’s Schedule B & C Wagner feels he is entitled to $393.00
retroactive to 1-01-92. The combined cost of the utilities for garbage and sewer is
currently $17.48. Considering that the decontrolled RV’s and mobilehome rent structure
includes utilities but the controlled mobilehomes do not; obtaining $393.00/mo. would
make the controlled spaces’ rents equivalent to $410.48. This would be over
$15.00/mo. higher than what the RVs are paying. Since The laundry room Capital
Improvement is not itemized on these rent statements either an additional $4.21/mo.
would make the rent for controlled homes $414.69/mo. For homes that cannot be
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moved.
9. That the park no longer has a live-in maintenance man nor live-in park manager.
Both live-in positions received free rent. In the case of the live-in maintenance man this
totaled $302.11/mo. as of 1-01-92 and $371.91/mo. as of 6-15-95. In the case of the
live-in manager, the manager received 82% of her space rent free. A total of 82% of
$302.11/mo., 1-01-92, for a projected total of 82% $435.35/mo. as of 6-15-95 (the
manager resided in the mobilehome in space #23). Thus, by no longer “paying” these
salaries, Wagner’s Net Operating Income increases to $728.80 per month, 6-15-95,
over what he was receiving, 1-01-92, which was $54.45 per month. Utilities were
factored back into these base rents.
10. Wagner’s gross monthly receipts for the base year rents in the ordinance, “Exhibit
A” 1-01-92, is $8284.70 at full tenancy. Wagner’s gross receipts for the 6-15-95 tenant
survey conducted in Pleasanton Mobile Home Park, for both RVs and mobilehomes, is
$11,647.19 at full tenancy. A 41% increase in gross income receipts for Pleasanton
Mobile Home Park in two years. This increase is a result of: 1. The ordinance no
longer controlling the rents for RVs. 2. Wagner purchasing three mobilehomes, with
one of these mobilehomes being removed and the space rented to an RV. 3. The
failure of one owner to sell their home, resulting in this resident giving the home away.
This space is now rented to an RV. 4. Passing through the property taxes. 5. The CPI
increases. The cost of the laundry room upgrade passed through to residents and
Capital Improvements I & II are not part of the base rent. As a result the average rent
for a space in Pleasanton Mobile Home Park (32 spaces) went from $258.90/mo. as of
1-01-92 (live-in salaries not removed) to $365.57/mo. as of 6-15-95. Just 2.0 years
later, the year over year increase in the gross income average rent went up 20.6%!
Factoring out the rents for the live-in maintenance man and the live-in manager for the
base year monthly receipts as of 1-01-92 reduces the base rent monthly receipts to
$7,734.93. Thus, the base year average rent was $241.72/mo. As a result of removing
the salaries for these two live-in positions the year over year increase between the base
year monthly receipts and the current year monthly receipts would equal a whopping
25.6%! Before any consideration of Wagner’s petition to change the Base Year Rent
and any Fair Return Hearing.
11. At times in the past there has been up to 7 RV spaces vacant within Pleasanton
Mobile Home Park(1993). Could this artificially lower the Net Operating Income for the
park?
12. Jerry Wagner bought Pleasanton Mobile Home Park 12-11-91. However, the base
rents he is contesting are for 1992. That he wanted the stepped increase to
$306.20/mo. as of 9-01-91. Why would Wagner buy a Mobilehome park when he knew
he would be contesting the rent structure? Was Wagner operating under some sort of
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false assumptions, which still have yet to be fully illuminated. Was Wagner present
during the “Summer and Fall of 1991" meetings between the City, the park owners, and
the residents before he bought the park 12-11-91? The meetings from which it was
decided that their would be no rent survey and the new Agreement would be
negotiated? Are there any minutes from these meetings? Who was present? No one
now living in Pleasanton Mobile Home Park, who was living in the park during that time
frame, is unaware of any scope of these negotiations pursuant to the negotiation of the
new Agreement. Other tenant representatives at the other parks have not been forth-
coming with information.
13. The Deed of Trust with Assignment of Rents for Pleasanton Mobile Home Park
seems to indicate that Ozbirn is carrying a $685,000.00 note for Pleasanton Mobile
Home Park. A call placed to Northwestern Title Company determined that no Deed of
Reconveyance has been filed. What are the terms of any note carried for Pleasanton
Mobile Home park?
14. That Mr. Wagner is insensitive to the point of being abusive. People have indicated
that they have felt intimidated. That it seems to some residents it is as if Wagner wants
to force everyone to leave Pleasanton Mobile Home Park.
15. That immediately after he bought the park Wagner went about completely cleaning
the park up. Doing extensive work on the main house and the cottage. The laundry
room is connected to the cottage. Was this the “substantial rehabilitation of existing
improvements” sited in the Capital Improvement section of the ordinance? These other
rentals are not part of the rent structure of Pleasanton Mobile Home Park but do add to
the “Fair Market” Value of the park.
16. A brief resident survey of Fairview trailer Park yielded the following information:
Fairview Trailer Park has not yet passed through the amounts of Capital
Improvement costs as has Pleasanton Mobile Home Park. Pleasanton Mobile
Home Park has passed through $10.00 for a roadway and tree topping. $10.55
for a fence. Now $4.21 for a laundry room. For a combined total of $24.76/mo.
added to the base rent since 1988. The total combined cost to the residents,
including interest will be $44,305.92. Fairview has passed through a tree
topping. cost unknown.
The live-in manager for Fairview Trailer Park has live there since 1966. She
indicates that the base rents are between $350.00/mo. to $375.00/mo. The
manager says that the park has a great view of the Alameda County Fair
Grounds. That they get to see horse racing and live concerts for free. That
Fairview Trailer Park is a community. Rose Avenue is not the busy thoroughfare
15. FINAL
15
that Stanley Blvd is but is still closer to downtown. The manager invited the
surveyor to come and live at Fairview.
One tenant interviewed said that when the mobilehomes are sold the base space
rents is de-controlled to $375.00/mo. Which is equivalent to the vacancy de-
control amount for Pleasanton Mobile Home Park from the base year rent of
$302.11/mo. in many spaces ($377.64). It appears as if RVs at Fariview pay
$350.00/mo. In Pleasanton Mobile Home Park RVs pay $395.00/mo. RV space
rent at Fairview are controlled by the Agreement. At Pleasanton Mobile Home
Park they are not.
There are two mobilehomes in Fairview for sale. Both of these mobilehomes
have been on the market for several years. Both previous residents live
elsewhere. One of these mobilehomes, apparently, is subletted to a relative of
the tenant who moved out. As these mobilehomes are priced between
$10,000.00 and $15,000.00 the space rents in Fairview may be getting up to the
level where there is no economic incentive to buy a mobilehome.
Fairview has 14 single-wide mobilehomes and 8 trailer/RVs. Fairview has no
double-wide homes. Pleasanton Mobile Home Park has only one double-wide.
Owned by management. It was indicated that transiency in this park is low. The
owners of Fairview have not bought any of the mobilehomes and although the
leases for the RVs are different, there is no short-term vacancy stipulation.
17. Long term residents of Pleasanton Mobile Home Park were asked whether there
existed a “special relationship” with D.E. Ozbirn, the previous owner of Pleasanton
Mobile Home Park, and the tenants. The answer was “no”. There was no evidence or
any recollection of a “special relationship”, HUD or Section 8. Burton was finally able to
talk to one tenant representative for the Pleasanton Mobilehome committee. This
representative stated that he knew of no “special relationship” with Ozbirn, the previous
owner.
18. Long-term residents of Pleasanton Mobile Home park indicate that transiency has
become high in Pleasanton Mobile Home Park. Current Pleasanton Mobile Home Park
tenants living in RV spaces indicated that they have to move out for a short period of
time as part of their rental agreement. Six months is now the usual period of time sited
before this short vacancy. One RV tenant was told by park management that short-term
vacancies had been stipulated by the City of Pleasanton. As per 798.3b of the
Mobilehome Residency Law Motorhomes, which are different than Rvs as they are
motorized, apparently cannot be redefined as mobilehomes regardless of length of
tenancy. Motorhomes now form the largest transient population in Pleasanton Mobile
Home Park.
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19. It is now clear that it would never have been in Wagner’s best interests to sign the
Agreement. That there was an insignificant calculated risk that anyone would be
successful in persuading Council to pass a replacement ordinance. The local elections
of November 1992 tipped the balance. Thank you, Pleasanton City Council! However,
it is clear that a space rent control Agreement or an ordinance would be incompatible
with condemning a mobilehome park. Stabilizing the rents would stabilize population
transiency. RV parks have high transiency. Mobilehome parks have low transiency.
RVs and mobilehomes are defined differently. As a result of suspicions about any
connection with what is happening here in Pleasanton Mobile Home Park and the Del
Valle Parkway extension; Greg Burton, the “Resident” Representative for Pleasanton
Mobile Home Park sat on the Circulation Sub-Committee for the Pleasanton General
Plan Review and helped organize community support for the removal of the Del Valle
Parkway extension from the Pleasanton General Plan. This recommendation, affirmed
by the Pleasanton General Plan Steering Committee, will now go to Council for a vote.
However, there are forces still at work attempting to keep this roadway in the
Pleasanton General Plan. Staff Report 6A, 1-19-88, indicates that negotiations could
take place between the City of Pleasanton and residents of Pleasanton Mobile Home
Park concerning the condemnation of Pleasanton Mobile Home Park for the Del Valle
Parkway. It may now be appropriate for residents to approach the City pursuant to
these negotiations.
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THE HACKER
The Newsletter of
Pleasanton Mobile Home Park
4202 Stanley Blvd. #24
Pleasanton, Ca. 94566