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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.