2002 FEBRUARY - Laserfiche WebLink

6.60.060 torial, gardening and office supplies. (7) Insurance premiums prorated over the life of the policy; provided, however, that title insurance premiums are excluded. b. The following shall not be includ- ed as operating expenses: (1) Debt service expenses, except as provided in subsection 6.60.100D of this chapter. (2) Depreciation. (3) Any expense for which the park owner is reimbursed. (4) Any penalties, fees or interest as- sessed or awarded for violation of this or any other law. (5) Reserve or impound accounts. (6) Expenses related to the conver- sion or sale of the park rather than to the improvement and maintenance of the park, including the cost of title insurance. (7) Expenses unrelated to the im- provement and maintenance of the park, such as an asset management fee, or expenses clearly excessive in relation to the customary and reasonable costs of such items. 4. "Real property taxes" shall be as defined in subsection 6.60.020M of this chapter. 5. Base year gross income, operating expenses, and real property taxes for purposes of these fair return adjustment provisions shall mean gross income, operating expenses and real property taxes in the calendar year 2001. 6. In the event a fair return petition involves only a portion of the spaces in a park, the gross income, operating expenses and real property taxes shall be adjusted to reflect the portion of the park that is subject to this chapter. In- come from and expenses attributable to spaces that are exempted from this chapter shall not be considered. (For example, if 40 percent of the homeown- ers are subject to this chapter, then only 40 percent of the income and expenses shall be considered.) The net operating income for the base year shall be deter- mined only for the spaces affected by the petition. C. Presumption That Base Year Net Operating Income Provided A Fair Re- turn: For the purpose of determining the rent increase necessary to provide the park owner with a fair return on investment, it shall be presumed that the net operating income for the calen- dar year 2001 (the base year) provided the park owner with a fair return on investment. D. Determination Of Base Year Net Operating Income: To determine the net operating income during the base year, there shall be deducted from the base year gross income a sum equal to the actual base year operating expenses and the real property taxes unless the park owner demonstrates to the satisfaction of the hearing officer that some other twelve (12) consecutive month period is justified pursuant to this chapter. E. Special Base Year Operating In- come Adjustment: It may be determined by the hearing officer that the base year net operating income yielded other than a fair return on the park owner's invest- ment. In that case, the base year net op- erating income may be adjusted accord- ingly. In order to make such determina- tion, the hearing officer shall make at least one of the following findings: (Pleasanton Februazy 2002) 192_50