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10A Action 2019 0304
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10A Action 2019 0304
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CM City Clerk-City Council
CM City Clerk-City Council - Document Type
Agenda
Document Date (6)
3/4/2019
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increase in expenses since the base year. <br /> <br />viii. Expenses associated with the provision of master-metered gas and electricity <br />services. <br /> <br />ix. Expenses attributable to unreasonable delays in performing necessary <br />maintenance or repair work or the failure to complete necessary <br />replacements. <br /> <br />x. Expenses attributable to a Park-owned Mobilehome, including but not <br />limited to any Mobilehomes rented out by the Park Owner except when <br />provided to a Park manager as a component of employment compensation. <br /> <br />xi. Expenses attributable to Spaces exempt from Rent limitations by state law or <br />this Chapter shall be excluded, for the purpose of determining applicable <br />rents for non-exempt spaces, by reducing the total allowed operating <br />expenses by the amount attributable to exempt spaces. This may be done by <br />reducing the total allowed operating expenses by the percentage of operating <br />expenses attributable to the total number of exempt Spaces in the Park, or by <br />another method approved by the Rent Review Officer. <br /> <br />c. Adjustments of Operating Expenses. Base Year and/or current operating expense <br />items shall be averaged with other expense levels for the same types of items for <br />other years or amortized or adjusted by the CPI or may otherwise be adjusted, in <br />order to establish an expense amount for the item(s) that most reasonably serves the <br />objectives of obtaining a reasonable comparison of Base Year and prior year <br />expenses. Grounds for such adjustments include, but are not limited to: <br /> <br />i. Either the amount or nature of an expense item for a particular year is not <br />representative. <br /> <br />ii. The Base Year expense is not a reasonable projection of average past <br />expenditures for that item in the years immediately preceding or following <br />the base year. <br /> <br />iii. The prior year expense is not a reasonable projection of expenditures for that <br />item in recent years or of future expenditures for that item. <br /> <br />iv. If a particular item of expense exceeds the normal industry or other <br />comparable standard for the area, the Park Owner shall bear the burden of <br />proving the reasonableness of the expense. To the extent that it is found that <br />the expense is unreasonable it may be adjusted to reflect the normal industry <br />standard. <br /> <br />v. A Base Year expense is exceptionally low by industry standards and/or on <br />an inflation adjusted basis is exceptionally low relative to the prior year <br />expense although the level or type of service for which the expense is <br />incurred has not changed significantly. <br /> <br />vi. An increase in maintenance or management expenses is disproportionate to <br />the percentage increase in the CPI, while the level of services has not <br />changed significantly and/or is not justified by special circumstances. <br /> <br />D. Constitutionally Required Fair Return: Notwithstanding any other provisions of this Chapter, <br />the Rent Review Officer or Hearing Officer, if on appeal, is authorized to approve any Rent
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