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
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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
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(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.