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HomeMy WebLinkAbout09-04-1986 MHRRB Minutes (2)g19 CityOfSOffice- Box 8100 an.luisLoBispo 93403-8100MINUTES Nazi 990 Palm n Luis Obispo, MOBILEHOME RENT REVIEW BOARD SEPTEMBER 4. 1986 TAPE *1 I. WELCOME/INTRODUCTIONS The meeting of the Mobilehome Rent Review Board was called to order at 1:45 p.m. by acting Chairperson Denny Wheeler with the following in attendance: BOARDMEMBERS: Label, Wheeler, Wright STAFF: Henderson, Guyre-Powell, Kemper II. APPROVAL_ OF_ MINUTES_ OF_ AUGUST_ 7. 1986 The minutes of the meeting of August 7. 1986 were approved as mailed. Having a legal quorum, the Board decided go forward with the hearing rather than postpone it to another date. III. REVIEW_ OF THE PACKET --- -- -- --- ------ Steve Henderson reviewed the packet presented to the Board, which included: 1. List of 7 items requested of the applicant at the last meeting; 2. Letter from Leola Rubottom to the Mayor and Council re: CPI for Creekside; 3. CPI sheet for June 1986; 4. Letter to prospective tenants of Chumash re: purchasing of spaces; 5. Letter to residents of Creekside re: upgrading of streets in Creekside via surcharge; 6. Minutes and agenda. IV. CONTINUATION OF SILVER CITY APPLICATION --------------------------------------- Mr. Olpin began his questioning of Ms. Martina Constance, manager of Silver City Mobilehome Park, with reference to specific categories and methodologies used in calculating the park's expenses. The Board questioned Ms. Constance to clarify some details. Mr. Olpin began his questioning of Mr. Kent Waters, real estate appraiser, with reference to the formulas and conclusions con- cerning the raw data figures arrived at in the various Exhibits. These Exhibits pertain to the appraisal report concerning the application. HUB Minutes September 4, 1986 Page 2 IV. CONTINUATION -OF -SILVER -CITY -APPLICATION ------------ -- ------ (continued) TAPE *2 TAPE *3 Specifically, Mr. Olpin questioned Mr. Waters with reference to Exhibits G and I. It was determined that the figures in Exhibit G which are incorporated in Exhibit I, do not total. When this was presented to him, Mr. Waters responded with the presumption that the error was typographical in nature, not methodological. The Board requested that the totals be recalculated and the the corrected information be sent to them before the next meeting. Mr. Olpin continued to question Mr. Waters with reference to terms, concepts, and possible formulas involved in preparing the appraisal report. Mr. Olpin questioned whether the conclu- sions arrived at in the appraisal report followed mathematical formulas. Mr. Waters responded to the effect that pure mathematical formu- las are not the tools/methods of an appraiser. Both factual as well as subjective data, he explained, are used in the compila- tion of a report. The net result was an estimate/opinion of value based upon objective data combined with an appraiser's expertise. In response to Mr. Olpin's questions concerning Exhibits J & K, Mr. Waters explained the concepts involved in the "Mortgage Equity Technique, and in doing so defined the components of this method including: "Overall Rate (OAR)," and "Gross Income Multi- plier (GIM)." Mr. Waters also stated that, in his calculations, used data solely from the years 1983 & 184, excluding the years 1982 & 185. Mr. Olpin further questioned Mr. Waters with reference to specific categories contained in Exhibit I, and how Mr. Waters adjusted for these factors. These categories included: "Reserve Fees," "Management Fees," and "Vacancy and Collection Costs." Mr. Waters applied the following values to their respective categories: 2%, 6%, and 3%. Mr Olpin inquires as to whether Mr. Waters brought with him the information known as the "7 -item list," which was requested of him at the last hearing. Mr Waters had complied. The Board requests that one copy of the same information be made available to them for review. The Board took a 10 minute break from 3:20 to 3:30. Mobile Home Rent Review Board Minutes- March 19, 1987 Page 5 After some discussion, the Board directed the staff to develop a definition of "surcharge." The Board agreed by unanimous consensus that the recommendations and changes affected by the Board are acceptable For submission t❑ the City Council. V. OTHER BUSINESS Tape #5 The Board discussed the adoption of a Lancaster type of ordinance For the City of San Luis Obispo. Dick Clark voiced opposition to arbitration. Dick Miller suggested separating CPI from the hardship cases. Boardmember Label stated he favored a new approach to getting people on leases. He stated a need for guidelines, and he was concerned about the costs of attorneys' fees. His suggestion was to restrict or eliminate the use of attorneys in the arbitration process. Ed Evans claimed the Lancaster ordinance system forces the park owners and the residents to work out their issues before it gets to arbitration. The uncertainty Factor causes this. Each side wants to settle it because they are not sure what the outcome will be. Neither side will risk losing in arbitrati❑n For an "iffy" case. The Board Further discussed arbitration and its effects ❑n the park owners and the tenants. Boarmember Label was concerned with the costs for both sides. Boardmembers Wheeler and Grden spoke in Favor of an arbitration ordinance. NOTI❑N: "That the Board accept the recommendation as it is in writing and as it appears in the staff report in paragraph '1 under_ the heading of..`New Approaches. CGrden, Label) A voice vote was taken with the following record: AYES -'i, NAYES-0. The m❑ti❑n carried. Chairperson Barlow Felt that a phasing plan would be difficult for the Board to administer. She recommended leaving it up to the City Council. The Board agreed with her by consensus. The Board discussed methods to gather larger audiences For the next meetings. Tape #6 UI. ADJOURN The next meeting will be held on March 26 at Creekside Mobile Home Park, and then at Colonial Manor. Chairperson Barlow adjourned this meeting at S:2S p.m.