HomeMy WebLinkAbout09-07-1986 MHRRB MinutesCIty10f SM WIS
990 Palm
/Post Office Box 8100 * San Luis Obispo,
MINUTES
MOBILEHOME RENT REVIEW BOARD
AUGUST 7, 1986
TAPE #1
I. WELCOME/INTRODUCTIONS
The meeting of the Mobilehome Rent Review Board was called to
order at 1:30 p.m. by Chairperson Pat Barlow with the
following in attendance:
BOARDMEMBERS: Barlow, Grden, Label, Wright
(Boardmember Wheeler arrived at 1:45)
STAFF: Henderson, Guyre-Powell
II. APPROVAL OF MINUTES OF JULY 17,198
The minutes of the meeting of July 17, 1986 were approved with
the correction of the spelling of Mr. Olpin's name.
Chairperson Barlow appointed Boardmember Grden to chair the
hearing on the application of Silver City, as she had
personally employed one of the attorneys appearing before the
Board.
Mr. Moody was sworn for testimony.
III. REVIEW OF THE PACKET
Steve Henderson reviewed the packet presented to the Board,
which included: 1. Letter from D. Law to residents of Silver
City re: results of poll on preference of age policy; 2.
Letter from D. Law to Shapiro Realty re: age policy at Silver
City; 3. Notice to tenants at Silver City re: amendement to
application for rent increase; 4. Minutes and agenda.
HRRB
Minutes - August 7, 1986
Page 2
IV. CONTINUATION OF SILVER CITY APPLICATION
Mr. Olpin began his questioning of Mr. Kent Waters, real
estate appraiser, with reference to the addenedum to the
application that included extracts of the appraisal report Mr.
Waters prepared for Silver City. Mr. Olpin defined his
objective as to clarify the various exhibits comprising the
addendum.
He questioned Mr. Waters with reference to Exhibit G, H, I, J
and K, and requested that the complete appraisal report be
provided to the Board. Mr. Water explained how various
exhibits were developed, and how appraisal judgements are
made.
TAPE #2
In response to Mr. Olpin's questions, Mr. Waters defined net
operating income and the formula for deriving value using NOI.
He explained that in identifying the park's expenses, he used
the parks books. Mr. Olpin requested that a summary of the raw
data be prepared. Mr. Waters referred to a "poll of
investors", and Mr. Olpin requested that he provide that. Mr.
Waters compared the mortgage equity technique and the direct
capitization technique, indicating a preference for the
mortgage equity technique. Mr. Olpin requested that he provide
a comparison of calculations using those techniques. Mr.
Waters offered his analysis of the three approches to MNOI
referred to in the Ruetgers Law Review.
The Board took a 10 minute break from 2:55 - 3:10.
TAPE #3
The Board asked questions of Mr. Waters, including his opinion
on the various methods of calculating MNOI.
Martenia Constance, resident manager of Silver City was
questioned by Mr. Law with reference to her tenure there and
the nature of her job. Mr. Olpin questioned her with
reference to the compilation of expenses for the years
1982-1985 that she had prepared, asking her to comment on
changes in expense in various categories.
TAPE #4
The Board questioned Ms. Constance to clarify some details.
Mr. Law clarified this issue of burying maintenance expenses
in payroll costs.
MHRRB
Minutes - August 7, 1986
Page 3
Mr. Olpin questioned Mr. Moody, co-owner of Silver City with
regard to original purchase price and additional investments
made in Silver City. Exhibit 2, a listing of investments in
the park, was introduced into the record.
TAPE #5
The board assigned numbers (la, lb, lc, Id) to exhibits from
the previous hearings. Steve Henderson informed the Board that
the Council would hear the Board recommendations on
modifications to the ordinance on September 16, and the appeal
on the Creekside tenants' application on September 22. The
Board agreed to hear from Mr. Ken Barr late in September.
V_ ADJOURN
The meeting adjourned at 4:55 p.m., and the next meeting was
scheduled for September 4, 1986, 1:30 - 4:00 p.m.