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HomeMy WebLinkAboutHOUSING COMMISSION - MINUTES 2007-2009L PALM DESERT REDEVELOPMENT AGENCY INTEROFFICE MEMORANDUM T0: RACHELLE KLASSEN, CITY CLERK FROM: PATTY LEON, RECORDING SECRETAR DATE SUBJECT JANUARY 14, 2010 HOUSING COMMISSION MINUTES Attached is the following Housing Commission Meeting Minutes approved at the Housing Commission meeting held January 13, 2010: December 9, 2009 Please submit to the Housing Authority Board Thank you. cc: John M. Wohlmuth, Executive Director C' / r"- . RY HOUSG AUTH v Ot / - - C (K A VERIrIED BY: .LL" L i Original on file with City Clerk's C f" ^ 9 0 u CITY OF PALM DESERT I. CALL TO ORDER REGULAR HOUSING COMMISSION MEETING MINUTES December 9, 2009 Verna Smith, Housing Commission Chair, convened the meeting at 3:30 p.m. II. ROLL CALL Present: Donna Lewis Natalie Russo Verna Smith Jane Turner Wade Tucker Also Present: Members Absent: Richard S. Kelly, Councilmember Liaison Justin McCarthy, ACM Redevelopment Janet Moore, Director of Housing James Conway, Project Coordinator Jessica Gonzales, Management Analyst Patty Leon, Recording Secretary Guest(s): Teresa Vakili, RPM Company Donnie Garibaldi, RPM Company Cathy Walker, Senior Management Analyst Veronica Tapia, Redevelopment Accountant II III. ORAL COMMUNICATIONS IV. CONSENT CALENDAR A. MINUTES of the Regular Housing Commission meeting of November 10, 2009. 1 Housing Commission Minutes V With a Motion made Commissioner Russo unanimously approved. DECEMBER 9, 2009 by Commissioner Turner and seconded by the minutes of November 10, 2009 were REPORTS AND REMARKS COMMISSION REPORTS Janet Moore stated that there is a staff report for discussion under New Business with regard to Carlos Ortega Villas; no other activity to report. AUTHORITY BOARD LIAISON, RICHARD S. KELLY, APPRECIATION PRESENTATION On behalf of the Mayor and City Council, Councilmember Liaison Richard Kelly, presented each member of the Housing Commission with a gift certificate and thanked them for their dedication and service. SUMMARY OF CITY COUNCIL, REDEVELOPMENT AGENCY, AND HOUSING AUTHORITY AGENDA ITEMS AND ACTIONS Jessica Gonzales summarized the memo provided to the Commission. A copy of Ordinance No. 1200, an ordinance of the City of Palm Desert amending and restating Chapter 8.36 regulation and prohibition of smoking of the Palm Desert Municipal Code was attached to the summary for the Commission's review. Janet Moore stated that the Ordinance is on the Agenda for the City Council as second reading. The Ordinance regulates and prohibits smoking in certain locations in Palm Desert to include the Housing Authority properties where it will limit smoking in community spaces. With regard to pool areas, a location will be designated as smoking. Tenants will be allowed to smoke inside their units and patios. Once this Ordinance is in effect, tenants will be notified. Wade Tucker asked where the statistics on the Ordinance came from. Mrs. Moore replied that a committee was in place for this purpose and the information provided was compiled by the Planning Department. Mr. Tucker commented that several tenants at Las Serenas smoke on their patios which affect the neighboring tenants forcing two people to move out. 2 c Housing Commission Minutes DECEMBER 9, 2009 Mrs. Moore stated that the Ordinance applies to City owned properties and not privately owned properties. One suggestion made to the City Attorney was that in addition to prohibiting smoking in common areas consideration should be given to make buildings non-smoking sometime in the future. RPM has mentioned that non-smoking units are highly sought after in other communities. D. MONTHLY OCCUPANCY STATUS REPORT RPM WEEKLY ACTIVITY STATISTICS The Commission reviewed the Monthly Occupancy Status Report and Weekly Activity Statistics for October. Verna Smith referenced the Monthly Occupancy Status Report and inquired on the number of traffic qualified for the month of September and October. Teresa Vakili stated that the property managers did a lot more calling in order to lease the vacant units during those two months and therefore the numbers are much higher. E. REPORT #1 - MONTHLY OCCUPANCY AND AVERAGE RENT STATEMENT The Commission reviewed the Monthly Occupancy and Average Rent Statement for October. Janet Moore stated that that Report 1 was modified to increase the font size. F. REPORT #2 — MONTHLY NET OPERATING INCOME STATEMENTS The Commission reviewed the Monthly Net Operating Income Statements for October. Janet Moore reported that the affordable properties are in competition with other market rate properties in Palm Desert in terms of rent. She mentioned that tenants are moving out to privately owned properties since the rents are lower and tend to be more lenient with the documentation requirements. The affordable properties are now serving tenants in the very low and low categories as opposed to the high end of low or moderate which have brought revenues down. Staff will request a reduction in revenues for the budget year in January. The occupancy percentage continues to be high compared to other properties, however, the Net Operating Income for the month of October is negative due to the revenues being down. Jane Turner asked why the reports were a month behind. 3 Housing Commission Minutes DECEMBER 9, 2009 Janet Moore stated that RPM is required to provide the reports to the Housing Authority by the 20 h of the month for the previous month. G. HOUSING AUTHORITY PROPERTIES UPDATE The update on the Housing Authority properties was reviewed by the Commission. James Conway summarized the report, stating that properties are inspected on a quarterly basis to include rooftops, down spouts, buildings, carports, walkways, pool room, stairwelis, etc. Upon question of any roof problems due to the rain, Mr. Conway stated that there were no problems reported. Wade Tucker commented that the landscape has improved tremendously at Las Serenas and noted that the landscape company was doing a better job of keeping the grounds clean. Janet Moore stated that James Conway has been on top of Sierra Landscape to ensure that they comply with the requirements of the contract. We prepared a binder with concerns and pictures and provided it to them. Mr. Conway stated that .staff is working on providing a report that shows examples of the different energy and recycling efforts. Staff tracked the recycling implementations to include building enclosures, trash reductions, and educating properties which resulted in a savings of $65,000 for all of the properties; One Quail Place is expected to receive $42,000 in savings this year. In addition, staff is also tracking water and gas conservation. All of the properties are currently either in efficient stage or excellent with respect to water conservation. VI. NEW BUSINESS A. ELECTION OF OFFICERS With members of the Commission in concurrence, Natalie Russo was nominated as Chair and Jane Turner as Vice Chair. Both Natalie Russo and Jane Turner accepted the office to which they were elected. Rec: By Minute Motion: 0 Housing Commission Minutes DECEMBER 9, 2009 Action: Motion was made by Commissioner Turner and seconded by Commissioner Tucker to elect Natalie Russo as Chairwoman commencing January 2010 for a term of one year. Action: Motion was made by Commissioner Tucker and seconded by Commissioner Lewis to elect Jane Turner as Vice-Chair commencing January 2010 for a term of one year. Janet Moore stated that there are currently two vacancies for the Housing Commission; one at large and one from the Housing Authority properties. Mrs. Moore noted that the seat available from a property resident is available to everyone; however, would prefer one from the larger properties such as One Quail Place or California Villas. She reported that the Council will be conducting interviews on Friday, December 11, 2009 to fill the vacancy at large. B. CARLOS ORTEGA VILLAS — AWARD OF CONTRACT Rec: By Minute Motion: Action: Motion was made by Commissioner Turner and seconded by Commissioner Lewis to forward the recommendation to the Housing Authority Board to authorize to negotiate and finalize a Professional Services Agreement for architectural services for Carlos Ortega Villas ' Janet Moore stated that a committee was formed, consisting of staff members from different departments, to review the submissions for the architectural services for Carlos Ortega Villas. The conceptual design; reviewed by the Housing Adhoc Subcommittee, was provided as part of the Request for Proposals (RFP). Of the 178 that requested packets 31 submitted proposals. The committee reviewed the proposals and rated each one based on a point system. The Council Sub-Committee and staff interviewed the top 4. From the results of the survey and interviews, KTGY was selected as the architect for Carlos Ortega Villas. C. 2010 PALM DESERT HOUSING AUTHORITY VENDOR LIST Rec: By Minute Motion: Action: Motion was made by Commissioner Russo and seconded by Commissioner Lewis to forward the recommendation to the Housing Authority Board to authorize the use of named 5 Housing Commission Minutes DECEMBER 9, 2009 vendors for purposes of providing recurring, routine services, supplies, and maintenance to the Housing Authority properties Veronica Tapia summarized the staff report. Upon question, Janet Moore stated that the vendor list is updated on an annual basis. She mentioned that the vendor list will allow RPM Company to continue to operate the properties without interruptions and avoid losing revenue because a unit cannot be turned in a timely manner. For this reason it was added to the purchasing ordinance. Wade Tucker inquired on the process for vendors to get on the list. Mrs. Moore stated that RPM Company is tasked, as part,of their contract, to go out to bid for routine and recurring services on a continual basis. The process of vendor selection is different in that public contract law states that you have to take the lowest bid, but because these are operational costs it falls in a different category. Therefore, the vendor list has more than one vendor that provides the same services or supplies, which is beneficial to the properties. RPM is consistently ensuring that we are getting the best quality at the best price in a timely manner and has that as an ongoing responsibility. Upon question of vendors out of the area, Teresa Vakili clarified that most of the vendors have corporate offices out of the area but have local o ces in the valley. Jane Turner inquired if Palm Desert vendors are used whenever possible to which Teresa Vakili replied yes. D. 2010 CONSULTANTS LIST Rec: By Minute Motion: Action: Motion was made by Commissioner Tucker and seconded by Commissioner Russo to forward the recommendation to the Housing Authority Board; 1) Approve the 2010 Master Consultants list; 2) Authorize staff to negotiate agreements and contract amendments with qualified consultants for up to 25,000, and authorize the City ManagerlExecutive Director to execute same; and 3) Approve the proceedings for selection and award of contracts as set forth in the report authorized by Section 3.32.090 of the Palm Desert Municipal Code Housing Commission Minutes DECEMBER 9, 2009 Janet Moore summarized the report, stated that the Agency requests information with respect to qualifications for consultants who wish to be considered for the approved Consultants' List on an annual basis. This list is used for minor services such as architectural and engineering that are valued less than $25,000. A committee of staff members reviewed the applications for consideration. She noted that this list is used by the City of Palm Desert, Redevelopment Agency and Housing Authority; the Housing Authority does not use this list as frequently given that a vendor list is in place for the properties. VII. CONTINUED BUSINESS VIII. INFORMATIONAL ITEMS A. AGENCY HOME IMPROVEMENT PROGRAM UPDATE Ah update on the Home Improvement Program (HIP) was provided to the Commission for review. James Conway summarized the report; stating that 6 homes have been completed, 5 are in construction, and 9 are in the application stage. Janet Moore reported that the Home Improvement,Program has received 23 applications as of December 151. During the fiscal year 08/09 the Home Improvement Program received 27 applications over the entire 12 months which was considered the record breaking year. Discussion ensued with possibly bringing before and after pictures but found that most home improvements are HVAC and energy issues and do not show drastic changes. James Conway mentioned that there are several homeowners in Desert Rose that upgraded their AC units to variable speeds two stage units which resulted in energy savings and reductions. He mentioned that in the future the idea is to have a model unit at Desert Rose that demonstrates the options available for energy upgrades. Verna Smith commented that a lot of people don't know of the Home Improvement Program and it may be that it is not being published/advertised to the public to show what it offers and how important it is. 7 Housing Commission Minutes 0 IX. Q TAOS PALMS RENOVATION UPDATE DECEMBER 9, 2009 Pictures of the construction progress were distributed for the Commission's review. NEXT MEETING DATE — January 13, 2010 Schedule of Housing Commission meeting dates for 2010 Janet Moore stated that the meetings of April 14 and July 14 occur after the regularly scheduled City Council meetings and in order to accommodate actions required by the Commission on the Housing Authority agenda, staff is requesting that the Commission adjourn the March meeting to April 7th and the June meeting to July 7th. She noted that if the Commission wanted to leave April meeting as it is, that would be fine since there is a another City Council meeting scheduled for that month; however, in July the Council only meets once due to their summer schedule. Motion was made by Commissioner Turner and seconded by Commissioner Tucker to reschedule the April and July meetings accordingly to accommodate actions required by the Commission on the Housing Authority agenda. Janet Moore stated that an updated schedule of ineeting dates for 2010 to include the change will be provided to the Commission at the January meeting. ADJOURNMENT Verna Smith, Housing Commission Chair, adjourned Commission meeting at 4:10 p.m. to January 13, 2010. f lX- "`- Patty Leon, Recording Secretary the Housing 0 PALM DESERT REDEVELOPMENT AGENCY 0 INTEROFFICE MEMORANDUM TO: RACHELLE KLASSEN, CITY CLERK FROM: PATTY LEON, RECORDING SECRETAR`If/ DATE: December 10, 2009 SUBJECT: HOUSING COMMISSION MINUTES Attached is the following Housing Commission Meeting Minutes approved at the Housing Commission meeting held December 9, 2009: November 10, 2009 Please submit to the Housing Authority Board. Thank you. cc: John M. Wohlmuth, Executive Director Qerr,P, £F e BY HOUSG AUTH S-O) ON I-ly-oln VERIFIED BY: ra Original on file with City Clerk's Office CITY OF PALM DESERT ADJOURNED REGULAR HOUSING COMMISSION MEETING MINUTES NOVEMBER 10, 2009 CALL TO ORDER Verna Smith, Housing Commission Chair, convened the meeting at 3:30 p.m. II. ROLL CALL Present: Donna Lewis Natalie Russo Verna Smith Jane Turner Wade Tucker Also Present: Richard S. Kelly, Councilmember Liaison Janet Moore, Director of Housing Jessica Gonzales, Management Analyst Patty Leon, Recording Secretary Guest(s): Members Absent: Teresa Vakili, RPM Company Cathy Walker, Senior Management Analyst Veronica Tapia, Redevelopment Accountant II III. ORAL COMMUNICATIONS Verna Smith thanked Natalie Russo for directing October's Housing Commission meeting during her absence. IV. CONSENT CALENDAR A. MINUTES of the Regular Housing Commission meeting of October 7, 2009. 1 Housing Commission Minutes NOVEMBER 10, 2009 With a Motion made by Commissioner Tucker and seconded by Commissioner Lewis the minutes of October 7, 2009 were unanimously approved. A revised copy of the first page of the minutes was distributed to the Commission that highlighted an administrative change to the header to read Adjourned Regular Housing Commission Meeting". A grammatical correction was made to page 3; perceptive was changed to perspective. V. REPORTS AND REMARKS A. ' COMMISSION REPORTS Janet Moore updated the Commission on Carlos Ortega Villas, stating that staff is in the process of selecting an architect for the actual design drawing. Interviews will be conducted shortly after the selection is narrowed down. This process will take a few months before a contract is awarded. Verna Smith asked when the ADHOC Subcommittee would be having another meeting. Mrs. Moore anticipates meeting with the ADHOC Subcommittee after the architect is selected. The conceptual design, approved by the subcommittee, will be provided to the architect once selected, and therefore there are no further discussions at this time. B. SUMMARY OF CITY COUNCIL, REDEVELOPMENT AGENCY, AND HOUSING AUTHORITY AGENDA ITEMS AND ACTIONS The summary was reviewed by the Commission. The Commission was also provided with a copy of the Appendix I Affordable Housing Compliance Plan Update; Veronica Tapia and Cathy Walker were present to answer any questions from the Commission. Janet Moore summarized the Compliance Plan. She stated that the Redevelopment Agency is tasked with spending 20% of the monies received from property tax increment for the purpose of providing affordable housing. Every five years both the Redevelopment Agency and Housing Division are required to prepare an Implementation Plan. That Plan outlines all of the goals and projects as well as identifies proposed projects that may be included during that five year period. As part of that Plan the Housing Division is tasked with 2 Housing Commission Minutes NOVEMBER 10, 2009 almost the same responsibility only in much more detail to include housing that was built, housing that will be built, replacement of any units, and how Housing anticipates expending fund dollars over the next five years. In the event the Agency or the Housing Division did not identify a certain project that they might anticipate doing in either plan then that project cannot be done. Mrs. Moore stated that the Compliance Plan was provided to the Commission as informational only, stating that this plan is a component of the Implementation Plan. She noted that staff spent a considerable amount of time in the preparation of the Plan. The Redevelopment Implementation Plan, consisting of four project areas, is approximately 50 to 52 pages and the Housing Compliance Plan is 46; both Plans were quite detailed. Jane Turner inquired if this Plan had anything to do with the stipulation. Mrs. Moore replied that the Plan identified that the stipulation was met and taken into consideration. Donna Lewis asked what the Commission Members' responsibility with the Plan was. Mrs. Moore replied that the Plan was simply provided to the Commissioners to show what the Housing Plan is projected to be for the next five years. There are certain projects that the Commission will be advisory to such as Carlos Ortega Villas which will be constructed by the Agency as part of the Housing Plan but then will be transferred to the Housing Authority for the operation. Carlos Ortega Villas will be a senior complex with approximately 72 units. Mr. Richard Kelly, Councilmember Liaison, added that Carlos Ortega Villas will be constructed with all the advanced, modern, technical, and experimental equipmenUupgrades; noting there are lots of reasons to brag about. Wade Tucker asked on the number of units Country Village had. Mrs. Moore stated that Country Village had 66 units and the Agency already identified units to replace those units that were demolished. The rebuilt units on that site will not be considered "replacement units". Replacement units cannot be counted both as production units and replacement units so the Agency considers all units available and identifies which units will give us the 'most bang for our buck'. Since units outside the project areas only count as '/2 for production, the Agency identified many units outside project areas as replacemenY' because those units are counted one for one as long as they are within the jurisdiction's boundaries. 7 Housing Commission Minutes NOVEMBER 10, 2009 Upon question, Mrs. Moore stated that the affordable housing income eligibility limits change on a yearly basis. C. MONTHLY OCCUPANCY STATUS REPORT RPM WEEKLY ACTIVITY STATISTICS The Commission reviewed the Monthly Occupancy Status Report and Weekly Activity Statistics for September. Donna Lewis referenced all the reports provided by RPM Company. She stated that having taken a statistics class in college she was looking for a report with the most information she can get and the easiest way to help her understand where we are with each property. She noted that the report that works best for her is the Monthly Occupancy Status Report where it shows the comparisons from this year to last year. She stated that the Weekly Activity Statistics report is somewhat helpful because it gives you the total units at the beginning of the period as well as the end of the period for that particular month. Regarding Report 1 and 2, she commented that those two reports were not as helpful. She addressed Teresa Vakili and asked if the Commission had to choose two pieces of paper that would provide the most helpful information that they need so that they could do their jobs, which ones would they be. Teresa Vakili stated that it depends on what the Commission would like to see. She stated that she tries to give the Commission all the information possible with regard to occupancy, recertification, and leases as well as monthly average activities on where the properties are according to stipulation. Natalie Russo stated that because of her background she actually preferred Reports 1 and 2 since it shows how much rent the properties are getting per unit and what the expenses are line by line. She further noted that Report 2 was informational and helpful and appreciated the information provided referencing the advertising line that denotes the dollar amount spent for the month and how that was important to know. Mrs. Lewis asked what the Commission's role was and if they were an over sight Commission. She expressed that she did not think the Commission was really worried about expenses such as paperclips. Ms. Lewis commented that maybe she was missing something. Janet Moore stated that these reports are created monthly for the benefit of staff as well as the Commission to show where the properties are on a monthly basis. The reports are informational and available for review in case the Commission wants to see a specific line item. With regard to the Commission's role, Mrs. Moore stated that their role is to review the financial aspect and approve the budget every year per property. The Housing Commission is an 0 Housing Commission Minutes NOVEMBER 10, 2009 advisory board to the Housing Authority Board which oversees the actual expenditures by month that are expended from the City's bank account. The Housing Authority has their own bank account with respect to the operations and expenditures of the properties and it is reflected monthly in these reports. RPM has an obligation to create the reports provided to the Commission. In addition, RPM also provides a trial balance on a monthly basis that shows everything they spend which is used to post the books. Mrs. Moore asked if the Commission preferred to review a report that only shows revenue, expenses, and income as opposed to Report 1 and 2 which are more detailed, or maybe add a line to the Monthly Occupancy Status report that just shows overall occupancy by property by month to include overall average rent. The existing reports were originally created to show how much per month is spent on a particular line item and provided to the Commission as informational only with no action required. Jane Turner asked if RPM provided these reports to staff every month and if it was helpful. Mrs. Moore stated that as part of RPM's contract they are required to provide this information that is necessary and useful to the operations of the properties. In addition, RPM is required to maintain occupancy at the income levels identified by the Housing Department. She provided an example that if a property is required to have 32 units at the 35% Area Median Income (AMI), RPM is required to stay within those guidelines. In most cases, that particular property is under the 35°/o level which means they were not able to find anyone at the 35% level which is acceptable as long as iYs lower and not higher. Mrs. Moore stated that she looks at these reports to ensure RPM is complying with the requirement. Ms. Turner stated that these reports are valuable to the Housing Division and felt that the Commission is an advisory board only and have no obligation to scrutinize RPM and point out any problems. Verna Smith suggested that Janet and Teresa further review the reports, given the Commissions comments and concerns. She asked the Commission if they should continue reviewing the reports as they are or would they like to see something different. Mrs. Russo commented that if there was an easier way to provide everything in one report would be fine with her. She referenced Report 2 and reiterated how she felt it was very informational, noting that 85% of these units are very low and how that statistic alone is phenomenal. She expressed that it would be a shame not to have that information. 5 Housing Commission Minutes NOVEMBER 10, 2009 Mrs. Moore stated that she and Teresa can further review these reports as suggested by the Chair. A suggestion was also made to provide box reports that come from the financial system and see if it would be more helpful. She asked the Commission if it was informational to know how many units we have, the type of bedrooms, and what the average rents are for that property. Wade Tucker replied yes and stated that this information is important to know since he lives at one of the properties. D. REPORT #1 - MONTHLY OCCUPANCY AND AVERAGE RENT STATEMENT The Commission reviewed the Monthly Occupancy and Average Rent Statement for September. E. REPORT #2 — MONTHLY NET OPERATING INCOME STATEMENTS The Commission reviewed the Monthly Net Operating Income Statements for September. F. HOUSING AUTHORITY PROPERTIES UPDATE The update on the Housing Authority properties was reviewed by the Commission. Janet Moore summarized the update, referencing the new item added on the Agenda for discussion under Informational Items. She mentioned that James Conway will update the Commission on the Taos Palms renovation project to include pictures of the construction in process. RPM staff was asked to include all routine and continuous work on the update so that the Commission would have an idea of the daily maintenance at the properties, with the exception of Mr. Wade Tucker who is a resident at one of the properties. Property Managers are tasked to walk the properties at least once a week from one end of the property to the other. Natalie Russo inquired on the $3,000 savings off original low bidders' proposal listed under One Quail Place. Mrs. Moore stated that some of the work done in the sauna rooms was completed by the maintenance staff in house rather than paying a contractor to do the work. Wade Tucker asked about the landscape situation. Housing Commission Minutes NOVEMBER 10, 2009 Mrs. Moore stated that it has been 60 days since the new landscape company has been at the properties. RPM has been doing a great job documenting any concerns that are not up to standard. Staff met with Sierra Landscape again and provided them with a binder outlining the maintenance they are required to do on a continuous basis. In the event another meeting is called to order, Spencer Knight will be invited to explain how the contract should be managed. Staff has been considerate with the fact that they were brought in during scalping and reseeding. However, James Conway brought up a good point with regard to the upkeep of the properties such as debris piling up on the sidewalks for days which is unacceptable and considered a routine maintenance that has nothing to do with learning the properties. There are specific methods by which a landscape company should already know when trimming trees and keeping the properties clean. Mr. Tucker commented that the landscape company is doing a lot better. Teresa Vakili stated that Sierra Landscape is responding to the meeting and how the binder really helped, commenting they have seen an improvement. Mr. Tucker mentioned that he has seen more landscape maintenance workers and felt Sierra Landscape probably underbid the job. Mrs. Moore stated that Sierra Landscape has a few more months to get the properties in shape before the Housing tour takes place, noting this will be their time to shine. Mr. Tucker asked if Sierra Landscape had previous experience with apartment complexes. Janet Moore stated that she was not sure if Sierra Landscape had previous experience. However, she explained how multi-family residential have specific requirements to consider such as the walkways have to be clear, properties are occupied, as well as ingress and egress all day. She noted that Spencer Knight was involved in the bid process and there was nothing to preclude Sierra from doing this job. Mr. Tucker commented that the first time Sierra Landscape started work at Las Serenas they used a huge tracker mower to cut the grass which left high grass in some areas besides having no place to park the tracker. Ms. Vakili mentioned that Spencer Knight had addressed this issue. 7 Housing Commission Minutes NOVEMBER 10, 2009 Mrs. Moore provided a brief update on Taos Palms stating that Phase I is underway and have addressed a significant portion of the structural issues. Several units have already been drywalled. Ms. Vakili commented that the contractor is doing a great job by keeping it clean and orderly. Mr. Tucker asked if there was a problem with Commissioners visiting projects during construction to make sure the job is getting done. Mrs. Moore stated that in most cases these projects are hard hat construction zone areas and may not be safe for visitors. Staff would prefer that if a Commissioner is interested in visiting a project site that they be accompanied by either a City or RPM staff member. She stated that it was staff's responsibility to ensure contractors are complying with their contract. This project was added to the Agenda so that staff can provide updates and pictures during the meetings so that the Commission can be informed on the status routinely. Verna Smith suggested that maybe sometime during the period of improving Taos Palms a tour can be made. Mrs. Moore stated that this property will be toured during the annual Housing Tour. VI. NEW BUSINESS VII. CONTINUED BUSINESS VIII. INFORMATIONAL ITEMS A. AGENCY HOME IMPROVEMENT PROGRAM UPDATE An update on the Home Improvement Program (HIP) was provided to the Commission for review. Janet Moore stated that the program is very active. She mentioned how most homeowners are not transiently moving around to new houses but rather fixing up their current homes. The program has had the same amount of applications from July to this date than the entire year last year. There were changes made to the program making it friendlier to the residents in Palm Desert that included manufactured homes as well. 0 Housing Commission Minutes B. TAOS PALMS RENOVATION UPDATE NOVEMBER 10, 2009 Janet Moore stated that pictures will be available at the next meeting. IX. NEXT MEETING DATE — December 9, 2009 ADJOURNMENT Verna Smith, Housing Commission Chair, adjourned the Housing Commission meeting at 4:10 p.m. to December 9, 2009. JI I/ U v Patty Leon, f ecording Secretary TO: FROM: DATE: SUBJECT: G PALM DESERT REDEVELOPMENT AGENCY INTEROFFICE MEMORANDUM RACHELLE KLASSEN, CITY CLERK PATTY LEON, RECORDING SECRETAR NOVEMBER 12, 2009 HOUSING COMMISSION MINUTES Attached is the following Housing Commission Meeting Minutes approved at the Housing Commission meeting held November 10, 2009: October 7, 2009 Please submit to the Housing Authority Board. Thank you. i v C BY HOUSG AUTH ON o-- D— VERIrIED BY: 2- -- I n-;`!'1 1 Original on file with City Clerks Office c cc: John M. Wohlmuth, Executive Director CITY OF PALM DESERT ADJOURNED REGULAR HOUSING COMMISSION MEETING MINUTES OCTOBER 7, 2009 CALL TO ORDER Natalie Russo, Housing Commission Vice-Chair, convened the meeting at 3:30 p.m. II. ROLL CALL Present: Donna Lewis Natalie Russo Jane Turner Wade Tucker Also Present: Richard S. Kelly, Councilmember Liaison Janet Moore, Director of Housing Jessica Gonzales, Management Analyst James Conway, Project Coordinator Patty Leon, Recording Secretary Guest(s): Teresa Vakili, RPM Company Spencer Knight, Landscape Director III. ORAL COMMUNICATIONS IV. CONSENT CALENDAR Members Absent: Verna Smith A. MINUTES of the Regular Housing Commission meeting of September 9, 2009. With a Motion made by Commissioner Tucker and seconded by Commissioner Lewis the minutes of September 9, 2009 were unanimously approved with Commissioner Turner abstaining. 1 Housing Commission Minutes OCTOBER 7, 2009 Wade Tucker referenced page 2 of the minutes and clarified his question of why Country Village was being named after Carlos Ortega. He stated that he did not want to sound like he was not in favor of the dedication and was only questioning why a housing complex and not a commercial building or a street such as Bob Hope and Fred Waring. Natalie Russo commented that she did not read the minutes that way but she appreciated his concern and clarification. With Mr. Tucker's consent, the minutes of September 9, 2009 were approved as presented with the understanding that a clarification regarding his previous statements be provided in the October 7, 2009 minutes. V. REPORTS AND REMARKS A. COMMISSION REPORTS B. SUMMARY OF CITY COUNCIL, REDEVELOPMENT AGENCY, AND HOUSING AUTHORITY AGENDA ITEMS AND ACTIONS The summary was reviewed by the Commission. C. MONTHLY OCCUPANCY STATUS REPORT RPM WEEKLY ACTIVITY STATISTICS The Commission reviewed the Monthly Occupancy Status Report and Weekly Activity Statistics for August. Natalie Russo referenced the Weekly Activity Statistics report and asked on the high number under "Leases Expiring This Period" particularly One Quail Place. Teresa Vakili stated that those numbers fluctuate depending on move-ins and renewals. She noted that One Quail Place will have 55 renewals one month and next month will only have five. September is considered a busy move-in month due to back to school and therefore the report will reflect a high percentage in Lease Renewals for the month of August. Wade Tucker commented that he had seen a notice posted on the office door at Las Serenas that read staff was in a safety meeting and asked if the Housing Commission members should attend those meetings as well. 2 Housing Commission Minutes OCTOBER 7, 2009 Ms. Vakili stated that RPM Company must hold safety meetings once a month for all internal RPM staff as a requirement by law. D. REPORT #1 - MONTHLY OCCUPANCY AND AVERAGE RENT STATEMENT The Commission reviewed the Monthly Occupancy and Average Rent Statement for August. E. REPORT #2 — MONTHLY NET OFERATING INCOME STATEMENTS The Commission reviewed the Monthly Net Operating Income Statements for August. Natalie Russo referenced the Net Operating Income on page 3 of the report and asked if the Agency's goal is to break even or if there was a certain goal per unit. Janet Moore stated that when the Agency first acquired the properties the goal at that point was to break even. Since that time, the Agency has added projects that are not necessarily Housing Authority projects but rather community projects such as Falcon Crest which is considered a moderate income project. The Agency then had to reallocate the affordability with respect to the rental properties to accommodate the same number of people into the very low and low income categories. The Agency knew that at one point it would have to subsidize the amount that was not being matched by rent from the 20% Housing Set Aside. She referenced the "Prior Year Net Operating Income° monthly totals stating that although Palm Village is the only property that was in the positive, minus $67,000 was still considered to be a realistic number, given that the Agency operates a 5 million budget for all the properties. She further stated that last year's report showed a loss of approximately $400,000 also considered to be better than expected. F. HOUSING AUTHORITY PROPERTIES UPDATE The update on the Housing Authority properties was reviewed by the Commission. Janet Moore stated that Spencer Knight was invited to the Housing Commission meeting to provide an update on the transition between the previous landscape company (Liberty Landscape) to the new landscape company (Sierra Landscape) for landscape maintenance at the Housing Authority properties. She noted that from managemenYs perspective the 'get to know you period' is taking Ibnger than anticipated. The Landscape Department, 3 Housing Commission Minutes OCTOBER 7. 2009 who are responsible for contract requirements, anticipated the transition taking longer considering there are 15 properties to maintain. Spencer Knight stated that it is typical for a new contractor to take some time to become familiar with the properties. The properties have had consistent maintenance from the same contractor for the past several years which is unusual. Staff has met with Sierra Landscape to discuss some of the concerns with the properties. He noted that Sierra Landscape is doing well given the number of properties and its sophistication. He further stated that Sierra has worked with the City in a number of different capacities and expects them to fulfill their contract. Wade Tucker commented on the landscape at Las Serenas during the first two weeks Sierra took over. He mentioned how he became concerned after reviewing the staff report and noticed that Sierra's bid amount was significantly low and called James Conway to clarify. James Conway stated that staff checks background experience before considering awarding a contract. Richard Kelly, Councilmember Liaison, stated that Sierra Landscape has done a lot of work for the City, noting that staff provides background information to the Council for review. Mr. Tucker stated that most of the time the contract is awarded to the lowest bid of which Mr. Kelly responded that that was not always the case and may be rejected due to performance concerns. Mr. Conway provided an example of a bid rejection due to non performance with regard to the Taos Palms renovation project. Mr. Knight mentioned that Sheila McGrew the landscape inspector for the properties is in charge of making sure that Sierra is perForming to contract. He reiterated that he fully expects Sierra to improve. Jane Turner asked if there were seasonal considerations and if September was a heavy work time to start a contract. Mr. Knight responded that yes September is usually the month for over- seeding as well as heavy growth due to summer. At this time, staff is expecting to see progressive improvement the first 30 days, fine tuning the next 30 days and then Sierra should be up and running with no excuses. n Housing Commission Minutes OCTOBER 7, 2009 Mrs. Moore stated that staff expected to award the contract in July, however Sierra needed to get their paperwork together so the award took place in August. Furthermore, Sierra had to get clearances from the other City departments prior to issuing a Notice to Proceed which took place in September. She noted that as a result of the timeframe delay, it may be a consideration in the future to extend the existing contract for a few months to get passed the heavy period or make the next contract shorter so the new contractor is on board before the reseeding period. Mr. Conway stated that Sierra has been placed on formal notice to perform. Mr. Knight added that Sierra has a reputation and often use the City as a reference as part of their contract which may affect their payment and performance bond if a negative mark is on there by the City. Mr. Tucker commented that he was surprised that Sierra will ride mowers and shave the grass down on the hills, noting he was concerned that with time it will not look good. Mr. Knight responded that he would have the landscape inspector look into this. Ms. Turner inquired on the fire unit at California Villas. Mr. Conway stated that in November of 2008 a tenant had a fire incident that caused total loss to one unit and minor damages to units on both sides. Given the timeframe to get insurance and legal issues addressed, the repair work was delayed and is now complete. Natalie Russo inquired on the motion sensor lights at La Rocca Villas and asked if the other communities had sensor lights installed as well. James Conway stated that staff continues to look for energy upgrades that include fluorescent lighting, walkway lighting, and accent lighting. At this time, the common areas are being addressed to include motion sensor lights as well as the parking structures. Mr. Tucker commented that the outside lighting at Las Serenas stays on all the time. He has noticed that the shells over time will become brittle and fall and break. He asked if Southern Edison can provide staff with extra shells so they don't have to replace the whole light unit. Mr. Conway stated that the properties order 12 fixtures in bulk from Edison Energy Program. He asked that this issue should be brought to the property manager's attention. He stated that Edison's rebate program has funded most of the lighting in the common areas. 5 Housing Commission Minutes OCTOBER 7, 2009 Mr. Conway provided a brief update with regard to the Taos Palms renovation project. The contract has been awarded and currently waiting on executed documents from the contractor. A preconstruction meeting has been scheduled for next week to include building inspectors and fire department. He anticipates issuing a Notice to Proceed sometime next week. He reiterated that the project is a two phase project; phase I will take 60 days then allow for tenant transfer period and then 60 days for phase II. Mr. Tucker questioned the contracYs dollar amount and asked if it was approved, recalling a concern with the contractor. Mr. Conway stated that there were two situations concerning the renovation project. The first time staff went out to bid, the bids received were non- responsive and therefore those bids were formally rejected. The second time staff went out to bid, the lowest bid was non-responsive, did not meet the qualifications necessary in order to complete the project. The second lowest bidder which is Desert Ranger was awarded the contract. Mr. Wade commented on the dollar amount of $512,000 to renovate 16 units. Mr. Conway explained that the contract amount equates to $30,000 a unit to include new phone cables, electrical and plumbing. The units were stripped down to the studs and are structurally being upgraded to include new drywall, paint and installation of hold-downs for seismic code requirements. He stated that a standard renovation unit ranges from $6,000 to $8,000 however this project is much greater in scale due to its much needed repairs. Staff estimated a$500,000 budget for the renovation project. Mrs. Moore stated that Taos Palms has been remodeled several times and made visible once the walls were opened. With regard to new plumbing and electrical, she clarified that only the pipes and wires will be new but will be connected to the existing source. She reiterated that this project is much more comprehensive than the standard upgrade of pulling cabinets and fixtures. Mr. Conway added that the exterior components of the buildings will not be part of the renovation project. Windows will be replaced to energy e ciency windows and new doors will be installed. Upon question, Mr. Conway stated that Taos Palms was purchased in 1998. VI. NEW BUSINESS VII. CONTINUED BUSINESS L Housing Commission Minutes VIII. INFORMATIONAL ITEMS OCTOBER 7, 2009 A. AGENCY HOME IMPROVEMENT PROGRAM UPDATE An update on the Home Improvement Program (HIP) was provided to the Commission for review. James Conway summarized the report; stating that 9 applications are in review, 6 in the construction phase, and 4 applications are complete. He stated that the program continues to be busy and recently the City's Brightside published an ad with regard to the program. IX. NEXT MEETING DATE — November 10, 2009 Janet Moore reported that the next regularly scheduled meeting for the Housing Commission is November 11; which is Veteran's Day and City Hall will be closed. She reminded the Commission that at the beginning of the year that the consensus was to further discuss the November meeting date contingent upon the Council's November schedule. The Council has confirmed that they will meet only once in November on the 12th. In the event that there are items that need to go before the City Council, staff would like the Commission to review them prior to the 12th of November. At this time, Mrs. Moore asked for suggestions on a meeting date. A motion was made by Commissioner Tucker and seconded by Commissioner Turner to reschedule the Housing Commission to Tuesday, November 10, 2009 at 3:30 pm. ADJOURNMENT Natalie Russo, Housing Commission Vice-Chair, adjourned the Housing Commission meeting at 4:11 p.m. to November 10, 2009. Regularly scheduled meeting of November 11, 2009 was canceled due to the Veteran's Day holiday. V `'- " Patty Leon, Recording Secretary 7 i .. PALM DESERT REDEVELOPMENT AGENCY ^' INTEROFFICE MEMORANDUM ° TO: RACHELLE KLASSEN, CITY CLERK FROM: PATTY LEON, RECORDING SECRETARI 1 v DATE: OCTOBER 8, 2009 SUBJECT: HOUSING COMMISSION MINUTES Attached is the following Housing Commission Meeting Minutes approved at the Housing Commission meeting held October 7, 2009: September 9, 2009 Please submit to the Housing Authority Board. Thank you. cc: John M. Wohlmuth, Executive Director BY HOUSG AUTH F D SP/If ON o --aa-n VERI IED BY: RD r Original on file with City Clerk's Office CITY OF PALM DESERT HOUSING COMMISSION MINUTES SEPTEMBER 9, 2009 I. CALL TO ORDER Verna Smith, Housing Commission Chair, convened the meeting at 3:30 p.m. II. ROLL CALL Present: Donna Lewis Natalie Russo Verna Smith Wade Tucker Also Present: Richard S. Kelly, Councilmember Liaison Janet Moore, Director of Housing Jessica Gonzales, Management Analyst James Conway, Project Coordinator Patty Leon, Recording Secretary Guest(s): Teresa Vakili, RPM Company III. ORAL COMMUNICATIONS IV. CONSENT CALENDAR Members Absent: Jane Turner A. MINUTES of the Regular Housing Commission meeting of July 8, 2009. With a Motion made by Commissioner Tucker and seconded by Commissioner Lewis the minutes of July 8, 2009 were unanimously approved. 1 Housing Commission Minutes V. REPORTS AND REMARKS A. COMMISSION REPORTS SEPTEMBER 9, 2009 B. SUMMARY OF CITY COUNCIL, REDEVELOPMENT AGENCY, AND HOUSING AUTHORITY AGENDA ITEMS AND ACTIONS The summary was reviewed by the Commission. Janet Moore referenced the agenda item for consideration of a request to accept the name "Carlos Ortega Villas" for the project known as Country Village. She stated that additional names were also discussed by the committee such as "Casa Carlos Ortega Village or Villas" as well as "Casa Carlos Ortega". A final decision will be made at the City Council meeting. Wade Tucker asked why the complex is being named after Carlos Ortega. Mr. Richard Kelly, Councilmember Liaison, stated that Carlos Ortega's main priority since day one has been housing, noting that Mr. Ortega was also on the Riverside County Housing Authority Board. Verna Smith commented that the Housing Commission was in favor of the dedication to name Country Village after Carlos Ortega; no action was taken. C. MONTHLY OCCUPANCY STATUS REPORT RPM WEEKLY ACTIVITY STATISTICS The Commission reviewed the Monthly Occupancy Status Report and Weekly Activity Statistics for June and July. Teresa Vakili stated that the properties remained 98% occupied during the summer. Wade Tucker asked if there were any problems at the properties being that June and July reports fluctuate. Ms. Vakili stated that due to the fiscal year end June's report included any allocated projects budgeted for that year; July 1S reflects the new budget for the fiscal year 2009/2010. 2 Housing Commission Minutes SEPTEMBER 9, 2009 D. REPORT #1 - MONTHLY OCCUPANCY AND AVERAGE RENT STATEMENT The Commission reviewed the Monthly Occupancy and Average Rent Statement for June and July. Wade Tucker inquired on the high number of turnovers at Las Serenas. Teresa Vakili stated that there are 5 available units at this time. She stated that there is no particular reason for the turnovers, and in most cases tenants have expressed they want to move in with families. E. REPORT #2 — MONTHLY NET OPERATING INCOME STATEMENTS The Commission reviewed the Monthly Net Operating Income Statements for June and July. Janet Moore provided a brief update on the Replacement Reserve Study authorized for 13 properties. She stated that the consultant, Association Reserves Inc., completed several studies at the properties which were concerning. She noted that the consultant requested a significantly high dollar amount as initial deposit for Laguna Palms which was recently renovated to include new service for electrical and plumbing. She stated that staff was concerned with whether the consultant took the actual condition of the properties into consideration or did an industry standards estimation. She explained how some of the properties are fairly new or recently renovated such as California Villas, Palm Village Apartments, La Rocca Villas, and Laguna Palms of which all received surprisingly high numbers. Staff has asked the consultant to hold proceeding with the study until further discussion. She commented that Association Reserves, Inc., is the same consultant that did the reserve study back in 1999, and at that time, the Director of Finance was concerned with their estimations. Riverside County Housing and Urban Development (HUD) also conducts analysis on properties and their analysis is about $250 per unit per year compared to Association Reserves at $700 per unit. James Conway stated that industry standards may not be the same as City standards which may skew the final numbers. He commented that staff is very familiar with the conditions of the properties, noting that there has been several renovation projects at the properties. 3 Housing Commission Minutes SEPTEMBER 9, 2009 Mrs. Moore also commented that staff provided a detailed report to Association Reserves that included warranties and how old things were at the properties, which was more information than they usually get when they do a reserve study. She provided an example of how a kitchen faucet may have a lifespan of three years with industry standards while the City's expected lifespan might be much longer. Verna Smith asked if staff had discussed the City's standards compared to other properties with the consultants. Mr. Conway stated that staff walked each property with the consultants and explained in detail the condition aspects. Staff will meet with the consultants to further clarify their findings. Natalie Russo referenced June and July reports and questioned the high number in payroll for June. Mrs. Moore stated that biweekly payrolls are paid differently; payrolls were accrued for the month of June but were paid in July. F. HOUSING AUTHORITY PROPERTIES UPDATE The update on the Housing Authority properties was reviewed by the Commission. James Conway summarized the update. Natalie Russo inquired on the standing water and flow issue at One Quail Place. Mr. Conway stated that tree roots overtime will lift parking areas and curbs which will result in need of replacement to alleviate the standing water and flow issue. He noted that there are several interior renovations at the properties due to vacancies. Wade Tucker asked on the number of pools at the complexes. Mr. Conway stated that most properties have pools with the exception of Palm Village, La Rocca Villas, and Sagecrest Senior. Mr. Tucker asked if the pools were in compliance with the new rules. Housing Commission Minutes SEPTEMBER 9, 2009 Mr. Conway stated that the pools are in compliance with the Virginia Graeme Baker Act, stating that the Act requires public pools to install equipment that prevents pool drain entrapment with an additional benefit to include energy efficient pumps. VI. NEW BUSINESS A. TAOS PALMS RENOVATION PROJECT Rec: By Minute Motion: Action: Motion was made by Commissioner Russo and seconded by Commissioner Lewis to forward the recommendation to the Housing Authority to authorize the award of contract to the lowest responsive bidder for the interior renovations at Taos Palms. James Conway reviewed the staff report and apologized for its delay. He noted that the lowest bidder's qualification to meet the criteria resulted in further review. The recommendation is to award the bid to the second lowest responsive bidder based in Rancho Mirage. Janet Moore clarified the different account numbers listed on the staff report to fund the project. Originally the project was going to be a unit renovation however, due to vacancies along an entire building it was recommended to the Agency Board that staff include all (16) units and eradicate a pest control issue. The existing tenants have agreed to transfer to the renovated units. Given that the second bid was higher than budgeted, monies from RPM's budget, Agency's capital budget, and cost savings from California Villas project were consolidated. Mr. Conway highlighted some of the real issues associated with the renovation to include kitchen configurations as well as work to include as many current building code changes as possible to maintain long term sustainability. Verna Smith asked on the timeline of the project. Mr. Conway stated that the contract calls for 120 days; 60 days for the first phase (2 buildings 8 units), allow for transfers, and then 60 days for the second phase (2 buildings 8 units. Renovation to the buildings by phase will include (8) units and will be isolated and surrounded by temporary safety fencings to allow access to the amenities such as the pool, parking and laundry room; available at all times to existing residents. 5 Housing Commission Minutes B. ONE QUAIL PLACE SUANA ROOMS Rec: By Minute Motion: SEPTEMBER 9, 2009 Action: Motion was made by Commissioner Tucker and seconded by Commissioner Russo to forward the recommendation to the Housing Authority Board the request to eliminate the saunas from One Quail Place. Teresa Vakili summarized the memo, stating that the sauna rooms are not being used on a regular basis by adults but are mainly an attraction to teenagers who leave the saunas and lights on, given that there is no supervision. RPM would like to convert these sauna rooms into a large storage facility to store tenant files. Janet Moore stated that this request was brought to the Housing Commission for consideration since it is eliminating an amenity at the property. However, other amenities have been removed at this particular property such as a workout room and iYs currently being utilized for the Childcare Center. She also noted that although the sauna rooms are free to tenants it is costly to maintain. Upon question of the cost to convert the room to a storage facility, James Conway stated it would cost approximately $6,000 to $8,000. Wade Tucker inquired if the tenants should be contacted prior to closing the sauna rooms. Ms. Vakili stated that temporary closed signs were posted on the doors to see what the reaction of the tenants would be; only two complaints were received out of 384 units. She noted that it would not affect the property since staff has to chase teenagers out of there and felt it is more of a nuisance than amenity. VII. CONTINUED BUSINESS VIII. INFORMATIONAL ITEMS A. AGENCY HOME IMPROVEMENT PROGRAM UPDATE An update on the Home Improvement Program (HIP) was provided to the Commission for review. 0 Housing Commission Minutes SEPTEMBER 9, 2009 James Conway summarized the report; stating that 8 applications are in review, 5 new assignments; and 4 are nearing completion. Upon question, he noted that the home located at Kelsey Circle had extensive mold from a long term water leak from a condensation line of the AC unit. Through the assistance of the HIP program, the property owner installed an energy efficiency AC and heating unit, completed a bathroom upgrade and is looking to convert to a drought tolerant landscape. Wade Tucker inquired if the homeowner had filed a claim with the insurance company. Janet Moore stated that Desert Rose has a Homeowners Association (HOA) who carries a master insurance policy. Initially, the homeowner contacted the insurance company to determine what could actually be corrected. The insurance company determined the damages were caused from a defective AC line which is not covered by the existing HOA master policy. The small amount of work the policy would cover was far less than the $5,000 deductible. Because Desert Rose typically has a common wall and to avoid future problems to the adjacent unit, the homeowner was encouraged to correct the situation and participate in the HIP program. Mr. Conway stated that the homeowner was approved for a deferred loan, in the event they decide to sell the home within the next several years the loan is paid back to the program. IX. NEXT MEETING DATE — October 7, 2009 —(North Wing Conference Room) ADJOURNMENT Verna Smith, Housing Commission Chair, adjourned the Housing Commission meeting at 4:10 p.m. to October 7, 2009. (Regularly scheduled meeting of October 14, 2009 was rescheduled by action of the Housing Commission) I/ `-V Patty Leon, Recording Secretary l PALM DESERT REDEVELOPMENT AGENCY OINTEROFFICEMEMORANDUM TO: RACHELLE KLASSEN, CITY CLERK FROM: PATTY LEON, RECORDING SECRETARY DATE: SUBJECT SEPTEMBER10,2009 HOUSING COMMISSION MINUTES Attached is the following Housing Commission Meeting Minutes approved at the Housing Commission meeting held September 9, 2009: July 8, 2009 Please submit to the Housing Authority Board. Thank you. cc: John M. Wohlmuth, Executive Director RL CCI b rl ev N a 5-O oN g- a-l VERIFIED BY ' `'' in Original on file with City erk's Office CITY OF PALM DESERT HOUSING COMMISSION MINUTES JULY 8, 2009 I. CALL TO ORDER Verna Smith, Housing Commission Chair, convened the meeting at 3:30 p.m. 11. ROLL CALL Present: Donna Lewis Natalie Russo Verna Smith Wade Tucker Jane Turner Also Present: Richard S. Kelly, Councilmember Liaison Justin McCarthy, ACM for Redevelopment Dave Yrigoyen, Director of RDA/Housing Martin Alvarez, Redevelopment Manager Jessica Gonzales, Management Analyst James Conway, Project Coordinator Patty Leon, Recording Secretary Guest(s): Members Absent: Teresa Vakili, RPM Company Veronica Tapia, Redevelopment Accountant II Cathy Walker, Senior Management Analyst III. ORAL COMMUNICATIONS IV. CONSENT CALENDAR A. MINUTES of the Regular Housing Commission meeting of June 10, 2009. With a Motion made by Commissioner Russo and seconded by Commissioner Tucker the minutes of June 10, 2009 were unanimously approved. 1 Housing Commission Minutes JULY 8, 2009 Jane Turner inquired on Mr. Reuel Young's responsibility at Country Village. Cathy Walker, Senior Management Analyst, stated that the schematic design process and feasibility of the project as presented at the Housing ADHOC subcommittee by Mr. Young was the initial process of the project. At this time, the Agency is requesting proposals for architectural services for the design development of Country Village's site. V. REPORTS AND REMARKS A. COMMISSION REPORTS B. SUMMARY OF CITY COUNCIL, REDEVELOPMENT AGENCY, AND HOUSING AUTHORITY AGENDA ITEMS AND ACTIONS The summary was reviewed by the Commission. Jessica Gonzales referenced the Request for Proposals (RFP) for Self-Help Affordable Housing Development attached to the summary of agenda/action items and offered to answer any questions. She stated that a notice will be published in the newspaper on July 9th with respect to the RFP. C. MONTHLY OCCUPANCY STATUS REPORT RPM WEEKLY ACTIVITY STATISTICS The Commission reviewed the Monthly Occupancy Status Report and Weekly Activity Statistics for May. Teresa Vakili stated that the properties are stable and are continuing their qualifying efforts. D. REPORT #1 - MONTHLY OCCUPANCY AND AVERAGE RENT STATEMENT The Commission reviewed the Monthly Occupancy and Average Rent Statement for May. Donna Lewis referenced the report and questioned the "percent of total" column for the properties and asked at what percentage is considered a concern. 2 Housing Commission Minutes JULY 8, 2009 Teresa Vakili stated that based on the stipulation in place there is a certain number of income levels allocated for each property. She noted the income brackets between the 55% and 75% levels are difficult to fill. When units at the 55 and 75% levels are difficult to lease, the property manager will lease the units at the lower level. E. REPORT #2 — MONTHLY NET OPERATING INCOME STATEMENTS The Commission reviewed the Monthly Net Operating Income Statements for May. F. HOUSING AUTHORITY PROPERTIES UPDATE The update on the Housing Authority properties was reviewed by the Commission. James Conway summarized the update, stating that there is a lot of activity at the properties due to the fiscal year end. Donna Lewis asked if there was a specific service request at One Quail Place, noting that One Quail Place had 160 service requests. Mr. Conway stated that One Quail Place is the oldest, largest apartment complex with 384 units. He compared the percentages of the other complexes and noted that the service calls at One Quail are typical. Verna Smith asked if the request for bids for the Taos Palms project was made public. Mr. Conway stated the bid package will be available within the next few weeks for a 5 to 6 week period and anticipates awarding a contract in September. Mrs. Smith asked if the Commission meeting canceled in August would conflict with the time line of the project. Mr. Conway replied no, stating that the time frame would allow new interested parties the opportunity to submit bids. Mrs. Smith referenced the update and asked if the tree trimming activity listed on the update was part of the tree trimming project recently approved by the Commission; Mr. Conway replied yes. VI. NEW BUSINESS 3 Housing Commission Minutes JULY 8, 2009 A. PALM DESERT LANDSCAPE MAINTENANCE SERVICES Rec: By Minute Motion: Action: Motion was made by Commissioner Turner and seconded by Commissioner Lewis to forward the recommendation to the Housing Authority to award of contract to Sierra Landscape Company, in the amount of $222,006 for annual landscape maintenance services for thirteen (13) Housing Authority Properties; and Authorize the Executive Director to execute any documents necessary to facilitate the contract award and implementation. James Conway reviewed the staff report, stating that Liberty Landscape has been the landscape company at the Palm Desert Housing Authority properties for a very long time. He noted that nine companies submitted bids; all being very competitive. Richard Kelly, Councilmember Liaison, mentioned that most companies listed on the staff report were not successful at the parks and are now competitive to landscape opportunities. Wade Tucker asked if the flowers that are changed throughout the year are part of their contract. Mr. Conway stated that the specification packet calls for 2000 flats twice annually and should be the same amount of flowers at the properties as previous years. B. IDENTITY THEFT PREVENTION PROGRAM Rec: By Minute Motion: Action: Motion was made by Commissioner Russo and seconded by Commissioner Tucker to forward the recommendation to the Housing Authority to approve the resolutions adopting an Identity Theft Prevention Program for the City of Palm Desert, Palm Desert Redevelopment Agency, Palm Desert Housing Authority, and Palm Desert Financing Authority. Veronica Tapia, Redevelopment Accountant, stated that the Identity Theft Prevention Program is mandatory set forth by the Federal Trade Commission. The Director of Finance will be responsible for reporting on behalf of the City. Housing Commission Minutes JULY 8, 2009 The Investment and Finance Committee will be in charge of implementing and administering the program. VII. CONTINUED BUSINESS VIII. INFORMATiONAL ITEMS A. AGENCY HOME IMPROVEMENT PROGRAM UPDATE An update on the Home Improvement Program (HIP) was provided to the Commission for review. James Conway summarized the report; stating that 9 applications are in review, 12 homes have been completed, 2 are nearing completion, and a total of 17 applicants were either denied or withdrew the application. He noted that there was an emergency applicant with AC issues that was recently completed. Verna Smith inquired on the administration assistance with the Program. It was explained that Debbie Bradley, Housing Technician for the City, is the initial contact who determines eligibility, and depending on the applicanYs approval status James Conway and Janet Moore forward to Rancho Housing Alliance to facilitate the scope of work until close out. Wade Tucker inquired on the funding sources of the HIP program. Jessica Gonzales stated that the funds are provided by the Redevelopment Agency's 20% tax increment housing set-aside. Financial assistance includes grants, low-interest loans that require monthly payments, and deferred loans where the applicant does not have to make payments. The deferred loans are considered silent second trust deed loans recorded against the properties. With regard to delinquent loans, Veronica Tapia mentioned that there is one loan in default and the Agency is working with the homeowner. Natalie Russo referenced the report and asked on the newly added column Paid to". Mr. Conway stated that the "Paid To" column will track the contractor working with the applicant. At this time, Verna Smith thanked Jessica Gonzales for attending as the Liaison in Janet Moore's absence. Housing Commission Minutes JULY 8, 2009 Richard Kelly, Councilmember Liaison, reported that Dave Yrigoyen will no longer attend the Housing Commission meetings due to his retirement, noting that Dave is a very valuable employee to the City. Commission members expressed their appreciation and wished Mr. Yrigoyen good luck. IX. NEXT MEETING DATE — September 9, 2009 ADJOURNMENT With a Motion made by Commissioner Turner and seconded by Commissioner Lewis, Verna Smith, Housing Commission Chair adjourned the Housing Commission meeting at 3:51 p.m. to September 9, 2009. (Regularly scheduled meeting of August 12, 2009 was canceled by action of the Housing Commission on June 10, 2009) a Patty Leon Recording Secretary PALM DESERT REDEVELOPMENT AGENCY INTEROFFICE MEMORANDUM TO: RACHELLE KLASSEN, CITY CLERK FROM: PATi'Y LEON, RECORDING SECRETARI I DATE: SUBJECT: JULY 9, 2009 HOUSING COMMISSION MINUTES Attached is the following Housing Commission Meeting Minutes approved at the Housing Commission meeting held July 8, 2009: June 10, 2009 Please submit to the Housing Authority Board. Thank you. R- RY HOUSG AUTI- ory •q t,8s i r) VERIr=1ED BY: Original on file with City Clerk's Office cc: John M. Wohlmuth, Executive Director CITY OF PALM DESERT HOUSING COMMISSION MINUTES JUNE 10, 2009 CALL TO ORDER Verna Smith, Housing Commission Chair, convened the meeting at 3:33 p.m. II. ROLL CALL Present: Natalie Russo Verna Smith Wade Tucker Jane Turner Also Present: Richard S. Kelly, Councilmember Liaison Dave Yrigoyen, Director of RDA/Housing Janet Moore, Director of Housing Martin Alvarez, Redevelopment Manager Jessica Gonzales, Management Analyst James Conway, Project Coordinator Patty Leon, Recording Secretary Guest(s): Teresa Vakili, RPM Company Donnie Garibaldi, RPM Company III. ORAL COMMUNICATIONS IV. CONSENT CALENDAR Members Absent: Donna Lewis A. MINUTES of the Regular Housing Commission meeting of May 13, 2009. With a Motion made by Commissioner Russo and seconded by Commissioner Tucker the minutes of May 13, 2009 were unanimously approved. 1 Housing Commission Minutes JUNE 10, 2009 Wade Tucker asked for clarification on the comment Janet Moore made with regard to Leo Sullivan and the changes and transitions of the Housing Commission. Janet Moore stated that Mr. Sullivan was a commission member when the Housing Division was very active in construction and acquisition and had seen a lot of changes and transitions such as the number of units from 700 to 1100 units. She noted that Mr. Sullivan's term with the Commission was extremely beneficial to the Agency during the time he served and that he expressed an interest in other city Commission or Committees. Mrs. Moore stated that the Housing Authority properties are in a maintenance operation at this time as opposed to a building operation. V. REPORTS AND REMARKS A. COMMISSION REPORTS B. SUMMARY OF CITY COUNCIL, REDEVELOPMENT AGENCY, AND HOUSING AUTHORITY AGENDA ITEMS AND ACTIONS The summary was reviewed by the Commission. Janet Moore reported that staff will forward a request to the City Council to authorize the Agency to issue a request for proposals (RFP) for architectural services for Country Village within the next month. A sub-committee meeting has been put on hold until further notice. Verna Smith asked for the location of the single family self-help units. Jessica Gonzales stated that the site for the self-help units is located off Merle Street next to the Falcon Crest development. C. MONTHLY OCCUPANCY STATUS REPORT RPM WEEKLY ACTIVITY STATISTICS The Commission reviewed the Monthly Occupancy Status Report and Weekly Activity Statistics for April. Teresa Vakili stated that the properties are stabilized at this time including traffic for leasing due to the difficulties of the economy. 2 Housing Commission Minutes JUNE 10, 2009 With regard to the wait list, Ms. Vakili stated that there is a wait list in place for very low income families in order to comply with the stipulation requirement in terms of income categories to fill. Natalie Russo asked for clarification on the difference between qualified and non-qualified tra c. Teresa Vakili stated that non-qualified traffic is defined as transients that are looking for a conventional community as opposed to the affordable program. Verna Smith asked for clarification on the negative numbers shown under the Net Balance category for the properties. Teresa Vakili stated that line 32 "prepaid balance" represents early rent payments from tenants for the following month/day which result in a negative net balance since the report is generated the last day of the month. D. REPORT #1 - MONTHLY OCCUPANCY AND AVERAGE RENT STATEMENT The Commission reviewed the Monthly Occupancy and Average Rent Statement for April. Wade Tucker inquired if there was an increase to the rents. Teresa Vakili stated that the rents are based on the county median income HUD guidelines published once a year. She noted that the income limits for 2009 did not change that much. Mr. Tucker commented that there are complaints at Las Serenas with regard to rents due to the increase in Social Security benefits. Mrs. Vakili stated that an increase to the household income may move the tenant to the next higher income category which increases the rental rate. Also considered in rent calculations are assets, savings and/or pensions. Janet Moore stated that the rent structure is calculated differently than other cities. Based on the stipulation requirements, rents are increased only by a 5% increment value that starts at 20%, 25% and then 30% of income as opposed to 30%, 50% and then 70°/o as described by Redevelopment Law. She stated that the rents at the Housing Authority properties are still lower than market rents. She noted that by maintaining the rent structure in this form it helps to keep the tenancy consistent. 3 Housing Commission Minutes JUNE 10, 2009 Mr. Tucker stated that most tenants at Las Serenas that receive Social Security benefits are no longer receiving the medical part B under the medical program 9840). Mrs. Moore stated that medical expenses are taken into consideration when calculating rent and may be addressed further. Natalie Russo inquired if other cities calculate the rents the same as Palm Desert. Mrs. Moore stated that the other cities' affordable program is based on the 30%, 50% and 70% rent structure pursuant to Redevelopment Law. She noted that the City of Palm Desert is unique in that it has a Housing Authority that owns its own properties. A lot of housing authorities are autonomous and most redevelopment agencies and cities do not own their properties. The Riverside County Housing Authority buys properties for cities and manages them which does not compare to the City of Palm Desert. E. REPORT #2 — MONTHLY NET OPERATING INCOME STATEMENTS The Commission reviewed the Monthly Net Operating Income Statements for April. Wade Tucker questioned why Las Serenas rental income was higher than the other senior properties. Teresa Vakili replied that Las Serenas is stabilized and has not had any capital projects which make a difference in the income. Verna Smith asked if an ADHOC sub-committee meeting would take place after an architect is selected for Country Village. Janet Moore stated that once staff is authorized to issue an RFP for architectural services and review those proposals, a meeting will be scheduled with the ADHOC sub-committee. F. HOUSING AUTHORITY PROPERTIES UPDATE The update on the Housing Authority properties was reviewed by the Commission. 4 Housing Commission Minutes JUNE 10, 2009 James Conway summarized the update, stating that several properties are waiting for approvals from the County Health Department for compliance with the Virginia Graeme Baker Act. Laguna Palms had repairs to the main sewer waste line caused by rocks and toys from years back. Mr. Conway noted that this repair had nothing to do with the rehabilitation project. Upon question, Mr. Conway stated that the solar panels at Palm Village are cleaned on a quarterly basis. The solar panels are performing well at both the designated units and carports; Jessica Gonzales is tracking its progression. VI. NEW BUSINESS A. TAOS PALMS — RENOVATION PROJECT Rec: By Minute Motion: Action: Motion was made by Commissioner Turner and seconded by Commissioner Tucker to forward the recommendation to the Housing Authority to authorize the request to reject all bids for the Housing Authority project known as Taos Palms interior renovation project. James Conway reviewed the staff report, stating that three out of four bids failed to provide the information that was required by the bid documents and are deemed to be non-responsive. The fourth bid received was significantly higher than the amount budgeted. At this time the request is to reject all bids and authorize the City Clerk to re-advertise a Notice to invite bids; the companies listed on the staff report are welcome to resubmit a bid. Richard Kelly, Councilmember Liaison, asked on the information that was missing from the bids received. Mr. Conway stated that the lowest bidder failed to provide a bidder's qualification requirement that includes a list of apartment renovation projects within the last ten years. The second and third bidders included renovation projects but were not apartment renovations as called for in the qualification requirements. Wade Tucker asked if the Housing Department had any knowledge of the bidders experience and background. F Housing Commission Minutes JUNE 10. 2009 Janet Moore stated that the formal bid process requires accepting the document provided by the bidder and relying on its information and not so much on personal and/or institutional knowledge; unless the Agency has a provision within the specifications to check references. All bidders provided a written statement declaring they were qualified. However, the bid asked for specific information with regard to apartment renovations and the lowest three bidders failed to comply. Staff asked for legal advice from the city attorney and the direction was to reject all bids including the last bidder since the price exceeded the budget for this project. Mr. Conway mentioned the renovations at Taos Palms to include electrical, plumbing, insulation, new windows, cabinets, doors etc. The last bidder's unit price was $68,000 per unit which exceeded the budget. Mrs. Moore also mentioned that the budget established for this project was based on previous renovation efforts at the Housing Authority properties. VII. CONTINUED BUSINESS VIII. INFORMATIONAL ITEMS A. AGENCY HOME IMPROVEMENT PROGRAM UPDATE An update on the Home Improvement Program (HIP) was provided to the Commission for review. James Conway summarized the report; stating that 10 applications are in review and 14 applicants were either denied or withdrew the application. IX. NEXT MEETING DATE — June 10, 2009 Janet Moore announced that the City Council will take an action at their meeting of June 11 h to change their meetings for July and August to the last meetings dates of July 23rd and August 27`". If approved, staff is asking that the Housing Commission meeting for July 8th be moved to July 22nd to accommodate any action items in July. She noted that in the event the Housing Commission is adjourned to the July 22"d meeting date, the commissioners would be exempt from the attendance requirement since the meeting is not on its regularly scheduled date. In the event the City Council does not approve the meeting dates for July and August, the July 8`h Housing Commission meeting will take place; Mrs. Moore will notify the Housing Commission. Also discussed was the August Housing Commission meeting. 0 Housing Commission Minutes JUNE 10, 2009 With a Motion made by Commissioner Turner and seconded by Commissioner Russo the August Housing Commission was canceled due to lack of agenda items. At this time, Teresa Vakili referenced the Monthly Net Operating Income Statements and made note to the number of units for the senior properties which makes a difference in the rental income. ADJOURNMENT With a Motion made by Commissioner Turner and seconded by Commissioner Tucker, Verna Smith, Housing Commission Chair adjourned the Housing Commission meeting at 4:07 p.m. to the July 22"a meeting contingent upon the approval of the City Council meetings for July and August. Patty Leon,cording Secretary v 7 W PALM DESERT REDEVELOPMENT AGENCY INTEROFFICE MEMORANDUM T0: RACHELLE KLASSEN, CITY CLERK FROM: PATTY LEON, RECORDING SECRETARY I\ 1 DATE: JUNE 15, 2009 SUBJECT: HOUSING COMMISSION MINUTES Attached is the following Housing Commission Meeting Minutes approved at the Housing Commission meeting held June 10, 2009: May 13, 2009 Please submit to the Housing Authority Board. Thank you. cc: John Wohlmuth, Executive Director Qe[x.tVe,F;l, BY HOUSG AUTH I-O LK A T ON /n--09 VERIFIED BY: ( Ofiginal on file with City Clerk's Office CITY OF PALM DESERT HOUSING COMMISSION MINUTES MAY 13, 2009 I. CALL TO ORDER Verna Smith, Housing Commission Chair, convened the meeting at 3:30 p.m. II. ROLL CALL Present: Donna Lewis Natalie Russo Verna Smith Wade Tucker Jane Turner Also Present: Richard S. Kelly, Councilmember Liaison Justin McCarthy, ACM for Redevelopment Dave Yrigoyen, Director of RDA/Housing Janet Moore, Director of Housing Martin Alvarez, Redevelopment Manager Jessica Gonzales, Management Analyst James Conway, Project Coordinator Patty Leon, Recording Secretary Guest(s): Members Absent: Veronica Tapia, Redevelopment Accountant II Teresa Vakili, RPM Company III. ORAL COMMUNICATIONS IV. CONSENT CALENDAR A. MINUTES of the Regular Housing Commission meeting of April 8, 2009. With a Motion made by Commissioner Turner and seconded by Commissioner Tucker the minutes of April 8, 2009 were unanimously approved. 1 Housing Commission Minutes V. REPORTS AND REMARKS A. COMMISSION REPORTS May 13, 2009 Verna Smith reminded the Commission to be careful discussing certain items that may possibly be on the Agenda prior to a meeting being called to order or adjournment, as discussed with City Attorney Dave Erwin at the last meeting. She noted that if the Commissioners have an item they would like to discuss they should call her and she would bring it up during a meeting for discussion. A copy of a memo from Janet Moore regarding Leo Sullivan's resignation was provided to the Commission. Verna Smith commented that Mr. Sullivan had a world of experience and great ideas; she expressed how he will be greatly missed. Janet Moore expressed sincere regrets with regard to Mr. Sullivan's resignation, stating that he is very active in Palm Desert and is currently on the board of O ce of Aging. She noted that she had recently spoken to him and he indicated that he had seen a lot of changes and transitions with regard to the Housing Commission. He wished all the members good luck and mentioned that if he had any questions he would attend a meeting. Given that the Housing Commission now has two vacant seats available, Mrs. Moore advised that a quorum consists of three (3) members. Richard Kelly, Councilmember Liaison, reported that there two openings for this Commission; one being a resident from the Housing Authority properties as well as an "at large" position. Mr. Kelly asked the Commission to encourage anyone they might know interested to apply. Applications on file were reviewed and found that there is no interest for this Commission. He reported that the City Council will be conducting interviews soon for vacant seats available for Committee and Commissions within the City of Palm Desert. Teresa Vakili stated that the tenants at the affordable housing properties will be notified of the openings. Janet Moore informed the Commission of the dedication ceremony of the Habitat for Humanity home scheduled for Friday, May 22, 2009. She stated that a short ceremony will take place that will include the turnover of home keys to the homeowner and a tour of the home. She noted that HabitaYs dedications show the work done to accomplish affordable housing by bringing it right down to the homeowner. 7 Housing Commission Minutes May 13, 2009 Mr. Kelly sent his regrets, stating he will not be available on that date. He stated that this will be the first dedication that he misses; expressing that Habitat for Humanity is a really great program. B. SUMMARY OF CITY COUNCIL, REDEVELOPMENT AGENCY, AND HOUSING AUTHORITY AGENDA ITEMS AND ACTIONS The summary was reviewed by the Commission. Jane Turner referenced the memo provided by Jessica Gonzales and asked if there had been changes in personnel and/or promotions since Janet Moore usually reports on the summary. Janet Moore stated that staff compiles the information for the summary and therefore felt it would be appropriate that they report and answer questions. C. MONTLY OCCUPANCY STATUS REPORT RPM WEEKLY ACTIVITY STATISTICS The Commission reviewed the Monthly Occupancy Status Report and Weekly Activity Statistics for March. Wade Tucker commented that Las Serenas had a high vacancy. Teresa Vakili stated that most move-outs at Las Serenas were due to residents moving all at once. Richard Kelly, Councilmember Liaison, asked about move-outs during the end of the school year. Ms. Vakili replied that only the multi-family properties have activity with regard to move-outs during that time especially Desert Pointe Apartments. Mr. Tucker commented that when he moved to Las Serenas ten years ago the property was very stable with only one move-out a year. Teresa Vakili clarified that the report reflects monthly totals and not weekly as stated on the report. D. REPORT #1 - MONTHLY OCCUPANCY AND AVERAGE RENT STATEMENT The Commission reviewed the Monthly Occupancy and Average Rent Statement for March. 3 Housing Commission Minutes May 13, 2009 E. REPORT #2 — MONTHLY NET OPERATING INCOME STATEMENTS The Commission reviewed the Monthly Net Operating Income Statements for March. Verna Smith asked about the wait list in place at the properties. Teresa Vakili reported that most senior properties have depleted their wait lists. An outreach of availability opportunities was made to include the Joslyn Senior Center. F. HOUSING AUTHORITY PROPERTIES UPDATE The update on the Housing Authority properties was reviewed by the Commission. James Conway summarized the update. In reference to the Notice of Completion at California Villas, Mr. Conway reported that Phase A was awarded in February of 2006 and Phase B was awarded in March of 2007. Although the property was acquired in 2003, it was stabilized prior to the renovation efforts. Wade Tucker commented that he had driven by the property and was impressed with the outcome. Mr. Conway reported on the Virginia Graeme Baker Act stating that the Act was put into place by Federal Law on December 20, 2007. The Act requires public pools to upgrade pools and spas to eliminate entrapment situations. There have been incidents reported where children got stuck on drains due to poor drain covers and/or too much suction in the pump lines. There are several options for compliance such as split main drains and vacuum release pumps both of which require approved drain covers. The vacuum release system also includes software that recognizes blockage and automatically shuts the pump off. This system was installed to those pools that were not re-plastered as part of the renovation efforts and did not have the opportunity to split the drains. We have chosen to add the variable speed pumps to our vacuum release for added energy savings along with rebates. All pools and spas have been upgraded to comply with the Act; all equipment is in place. Also in place as a component to the requirement is an emergency shut-off switch. The pools are currently in review by the Riverside County Health Department. Housing Commission Minutes VI. NEW BUSINESS A. CALIFORNIA VILLAS — NOTICE OF COMPLETION Rec: By Minute Motion: May 13, 2009 Action: Motion was made by Commissioner Russo and seconded by Commissioner Tucker to forward the recommendation to the Housing Authority to authorize the City Clerk to file a Notice of Completion for the project known as California Villas Phase "B" Site Renovation (Contract No. HA 23650C) as completed. James Conway reviewed the staff report, stating there are minor items to complete. B. NEIGHBORHOOD STABILIZATION PROGRAM Rec: By Minute Motion: Action: Motion was made by Commissioner Turner and seconded by Commissioner Lewis to forward the recommendation to the Housing Authority to authorize the approval of Neighborhood Stabilization Program Veronica Tapia summarized the report provided to the Commission for review. She stated that last year as part of the Housing and Economic Recovery Act, Congress allocated $3.92 billion for Neighborhood Stabilization Programs NSP) to those areas with the greatest need. Need was defined by the number of foreclosures, sub-prime mortgages, and the potential for future foreclosures in a given area. The State of California received an allocation of $145 million which has since been allocated to jurisdictions throughout the State. Palm Desert has been designated as a Tier 2 Jurisdiction, making the City of Palm Desert eligible for $326,784 in NSP funding. In order to apply for Tier 2 monies, the State has a minimum threshold of $1 million. To meet this threshold, the State permits jurisdictions in Tier 2 to combine their allocations with other contiguous jurisdictions through a joint agreement. It is our intent to enter into a joint agreement with the County of Riverside, City of Coachella, and the City of Palm Springs in order to access these funds. 5 Housing Commission Minutes May 13, 2009 The Action Plan consists of five activities as required by the program. However, at this time, the primary focus of the Plan will be to provide an enhanced First-Time Home Buyers (FTHB) Program, which will provide qualified homebuyers assistance in purchasing foreclosed homes in designated areas within Palm Desert. The purpose of the public hearing is to provide an opportunity to all persons who may be affected by the proposed activities to participate and comment prior to submission of the application for funding. Richard Kelly, Councilmember Liaison, asked who would benefit from this program. Janet Moore stated that the NSP program is designed to provide down payment assistance to households whose incomes are less than the 120% of the area median income. The program could provide assistance up to 75,000.00, a deferred loan with no interest. Upon question of special requirements, Mrs. Moore stated that the only requirement would be the reporting portion of the program which is similar to our existing CDBG program. Applicants that did not meet the $1 million threshold individually are required to submit a joint application. Therefore, the City of Palm Desert will partner with the City of Palm Springs, City of Coachella as well as the County of Riverside; two Tier 2 cities from Riverside County declined to participate. Mrs. Moore noted that the County of Riverside was initially allocated $48 million dollars for this purpose; they did not identify City of Palm Desert as a greatest need. Riverside County will be responsible to disburse the monies appropriately to the cities requesting funding. The application is required to be filed by June 15, 2009. Cities will have 18 months to spend the money. Mrs. Moore noted that this is a City program however; the Agency will administer the money as well as the qualifications of applicants. Wade Tucker asked about the target areas identified; Mrs. Moore replied that the target areas were identified by foreclosure rates. 0 Housing Commission Minutes VII. CONTINUED BUSINESS VIII. INFORMATIONAL ITEMS A. HOUSING AUTHORITY NEWSLETTER May 13, 2009 Newsletters were provided to the Commission for May. B. AGENCY HOME IMPROVEMENT PROGRAM UPDATE An update on the Home Improvement Program (HIP) was provided to the Commission for review. James Conway summarized the report, stating there is more activity this year than last year. IX. NEXT MEETING DATE — June 10, 2009 ADJOURNMENT With members of the Housing Commission concurrence Verna Smith, Housing Commission Chair, adjourned the meeting at 4:06 p.m. 1.-l.l.l l.ClJ `ti-J Patty Leon, 2ecording Secretary 7 i j I I , PALM DESERT REDEVELOPMENT AGENCY INTEROFFICE MEMORANDUM TO: RACHELLE KLASSEN, CITY CLERK FROM: PATTY LEON, RECORDING SECRETAR ) DATE SUBJECT: MAY 14, 2009 HOUSING COMMISSION MINUTES Attached is the following Housing Commission Meeting Minutes approved at the Housing Commission meeting held May 13, 2009: April 8, 2009 Please submit to the Housing Authority Board. Thank you. cc: John Wohlmuth, Executive Director LU v Recei v e' F-P. RY HOUSG AUTH 5- ON -' r)_a-% VERIFIED BY m Origina on file with City Clerk's Office CITY OF PALM DESERT HOUSING COMMISSION MINUTES APRIL 8, 2009 CALL TO ORDER Verna Smith, Housing Commission Chair, convened the meeting at 3:30 p.m. II. ROLL CALL Present: Donna Lewis Verna Smith Wade Tucker Jane Turner Also Present: Richard S. Kelly, Councilmember Liaison Dave Yrigoyen, Director of RDA/Housing Janet Moore, Director of Housing Martin Alvarez, Redevelopment Manager Jessica Gonzales, Management Analyst James Conway, Project Coordinator Patty Leon, Recording Secretary Guest(s): III. IV. Teresa Vakili, RPM Company Dave Envin, Best Best and Krieger ORAL COMMUNICATIONS CONSENT CALENDAR Members Absent: Leo Sullivan Natalie Russo MINUTES of the Regular Housing Commission meeting of March 11, 2009. With a Motion made by Commissioner Tucker and seconded by Commissioner Lewis the minutes of March 11, 2009 were unanimously approved. V. REPORTS AND REMARKS Housing Commission Minutes A. COMMISSION REPORTS April 8, 2009 New Legislation Affecting How Legislative Bodies Communicate SB 1732) A letter from the District Attorney regarding the Brown Act was provided to the Housing Commission as informational. Janet Moore stated that the meeting dates are optional to attend. She noted that the Housing Commission members are required to attend ethics training every two years. A notification is sent by the City Clerk's office of upcoming meeting dates for the training. Mrs. Moore introduced Dave Erwin, City Attorney, present to update the Housing Commission on new changes to the Brown Act. She noted that Mr. Erwin routinely attends committees/commissions to provide updates on the Brown Act and answer any questions. Dave Erwin stated that the Brown Act has been in effect for many years and otherwise known as the Open Meeting Law. He explained the basic regulations regarding public meetings and advised that all meetings of the legislative body shall be open and publicized for which an agenda is posted 72 hours in advance. Closed session meetings have specific exceptions and are typically pertaining to personal and litigation issues as well as real property negotiations. A legislative body is any governing body of a local agency, a City Council, a voting Board, Commissions and Committees appointed by the City Council. He noted that the Brown Act has been recently amended sufficiently to include criminal sanctions for violations of the Brown Act. He reminded the Commission that staff is not part of the legislative body and therefore are not subject to the Brown Act. He stated that he is making the Commission aware of some of the elements so they do not inadvertently do something that would be subject to any sort of sanctions according to the Brown Act. He noted that there are some limited exceptions for putting items on the agenda that arise at a later date and by a 4/5 vote the item may be added to the Agenda for discussion. Mr. Erwin referenced the memo from Best Best and Krieger provided to the Commission and read a section that is now in place: A majority of the members of the Legislative Body shall not, outside of the meetings authorized by this chapter, use a series of communications of any kind directly or indirectly, discuss, deliberate, or 2 Housing Commission Minutes April 8, 2009 take action on any item of business that is within the subject matter jurisdiction called the Legislative Body." Mr. Erwin explained that if two members of this Commission consisting of seven members, majority is four, engage in a conversation within the subject matter jurisdiction, meaning an item that might require action, but iYs not on the agenda, and they each speak to someone else it constitutes a violation of the Brown Act because it has become a meeting. He provided an example of an organization that canceled a trip to a production facility within their jurisdiction matter because there were too many legislative bodies invited. He advised Commission members not to discuss any items within the subject matter jurisdiction while attending City functions. At this time, the legislative body for the City of Palm Desert is not under scrutiny but to be cautious in the event it is. He further noted that if this Commission had any questions or concerns he may be reached at Best Best and Kreiger. Verna Smith asked about Commission members attending tours and grand openings to facilities within the subject matter jurisdiction. Mr. Erwin responded that as long as those functions are posted as an open meeting and open to the public, the Commission is free to discuss any matter related. Jane Turner asked for clarification as to the members of the legislative body. Mr. Erwin reiterated that the Legislative Body is the governing body, City Council, a Commission or Committee Board or other body of the local agency with a permanent or temporary decision making or advisory of the legislative body. Wade Tucker asked if he discussed an agenda item with his wife and his wife decides to communicate the related matter with someone else, would that constitute as a violation of the Brown Act. Mr. Erwin stated that it would not be a violation since she is not part of the legislative body. He reiterated to the members of this Commission to refrain from speaking with one another on matters within the subject matter jurisdiction outside Brown Act meetings. 3 Housing Commission Minutes April 8, 2009 Mrs. Moore stated that staff is taking every precaution with regard to the Brown Act requirements. The agenda and agenda items emailed to commission members will restrict email addresses in the event a member inadvertently "Replies to All" with a question regarding the Agenda which will automatically create a meeting resulting in a violation of the Brown Act. Ms. Turner asked if Commission members are allowed to obtain a list of addresses and phone numbers of inembers of this Commission. Mrs. Moore stated that the City Clerk had indicated that if the Commission members provided those numbers amongst themselves that would be fine, but typically was not provided by their office. She noted that this request may be revisited with the City Clerk. II. Replacement Housing Plan A draft version of the Replacement Housing Plan for Country Village was provided to the Commission as informational. Janet Moore stated that this plan was developed as a result of the redevelopment of Country Village. Redevelopment Law states that whenever units are destroyed or removed, the Agency is required to create a plan that identifies where replacement units could be built. She referenced the last page of the plan that lists expected locations of replacement units. She noted that some of replacement locations are not in a Project Area which is beneficial to the Agency since affordable housing units outside a Project Area count for only half a unit for inclusionary purposes. Once the Agency identifies units that are to be used as replacement, they cannot count as produced affordable housing since the Agency is replacing existing units. Fifty-six units were deemed affordable at Country Village of which cannot be counted towards housing production. Therefore, the Agency identified existing units, outside a Project Area, to be used as replacement to allow all of the units developed at Country Village's site as production. This item will be forwarded to the Redevelopment Agency Board for approval at their second meeting in April. Mr. Tucker asked about the new concept in terms of two-story buildings on that site. Mrs. Moore mentioned that not all the buildings are designed to be two-story. 0 Housing Commission Minutes RiIE:'1I1] Martin Alvarez mentioned that he will provide a brief explanation of the new concept during the power point presentation. Jane Turner asked for clarification of existing units. Janet Moore replied that the Agency uses whaYs called "Banked" units which mean previously existing housing units that meet the requirement from being restricted. Las Serenas is owned by the Agency and deemed affordable which meets the criteria. In the event those units are counted towards our stipulation requirement, they only count for half towards the inclusionary requirement for the Redevelopment Agency because the units are outside a project area. There is a stipulated requirement, Regional Housing Needs Assessment (RHNA) requirement, inclusionary requirement, and replacement requirement. If units are counted in the replacement category they cannot be counted in any of the other categories. Only a certain number of units will be used from Las Serenas as replacement units and will no longer be counted in the other categories. She noted that the Agency used the best option for replacement that would be beneficial to the housing production. She further noted that although the requirements may sound complicated, iYs all classified as affordable housing. The only time the requirements are separated is when the Agency reports to the State. Mrs. Moore reported that another possible replacement housing plan will be presented to the Commission for a property being considered at a future date. She noted that the plan does not change the operation of the properties nor does it change the terms of who manages them. B. SUMMARY OF CITY COUNCIL, REDEVELOPMENT AGENCY, AND HOUSING AUTHORITY AGENDA ITEMS AND ACTIONS The summary was reviewed by the Commission. Martin Alvarez reported that a Notice of Completion for Country Village will be presented to the Redevelopment Agency Board for approval at their April 28th meeting. C. MONTLY OCCUPANCY STATUS REPORT RPM WEEKLY ACTIVITY STATISTICS The Commission reviewed the Monthly Occupancy Status Report and Weekly Activity Statistics for February. 5 Housing Commission Minutes April 8, 2009 As a request by a Commission member, a column was added to include totals for Qualified and Non Qualified Traffic. Verna Smith inquired on Falcon Crest status. Janet Moore stated that there is one property at Falcon Crest that has been forvvarded to the Redevelopment Agency Board for approval to acquire. She noted that the for-sale wait list is down. There has been some outreach in the City's Brightside with regard to the affordable for-sale program. At this time, the Agency will purchase the property back and look for a qualified buyer based on the terms of the Falcon Crest program. She further stated that there are a few homeowners who have income issues and have contacted the Agency for advice. The Agency has not been notified of any defaults filed for either development. Wade Tucker asked about the financing of the Falcon Crest homes. Mrs. Moore stated there is a combination of financing. There are three loans on each Falcon Crest home to include a first mortgage with either Wells Fargo or Country Wide, a second loan in favor of the Redevelopment Agency, and a third loan by the City for the purpose of down payment assistance. The third loan was awarded to the City of Palm Desert in a form of a grant. It has been a year since the project sold out. There a few homeowners with income issues and possible non-payment of mortgages that have been encouraged to inquire on foreclosure counseling and/or catholic charities. One major problem reported at both Desert Rose and Falcon Crest is the non- payment of Homeowners Association dues. Violation letters are sent to those homeowners who are in default of HOA dues. The Agency receives notifications from the Homeowners Association when homeowners are substantially behind. While it's not the responsibility of the Agency to collect HOA dues, letters are sent to homeowners to remind them of their obligation per their affordable housing agreement. The HOA may file a lien against their property and possibly foreclose; therefore the Agency will do everything in their power to maintain the properties affordable. Teresa Vakili reported on the traffic count stating that most traffic is by telephone calls; One Quail Place is the only property that gets a lot of walk-ins. D. REPORT #1 - MONTHLY OCCUPANCY AND AVERAGE RENT STATEMENT The Commission reviewed the Monthly Occupancy and Average Rent Statement for February. Housing Commission Minutes April 8, 2009 E. REPORT #2 — MONTHLY NET OPERATING INCOME STATEMENTS The Commission reviewed the Monthly Net Operating Income Statements for February. As a request by a Commissioner at a previous meeting, a column that shows a comparison of monthly totals to the previous year was included at the bottom of page 3. Wade Tucker asked for clarification of the numbers in parenthesis. Janet Moore stated that those numbers represent a negative in that category. It is expected that the Housing Authority properties would not be able to fund themselves simply from rents due to the income levels at the properties. However, 20% set aside money derived from tax increments are utilized to offset those negatives. F. HOUSING AUTHORITY PROPERTIES UPDATE The update on the Housing Authority properties was reviewed by the Commission. James Conway summarized the report. Upon request, Mr. Conway provided a brief explanation on the Virginia Graeme Baker Act, stating that the Act requires public pools to install equipment that prevents pool drain entrapment. One recommendation is to split a single drain system into dual drains to reduce the possibility of a drain blockage. Additional safety upgrades include the installation of Intelli Flo (vs + svrs) vacuum release pumps that shut down pumps when blockage takes place on a single drain. New safety drain covers were installed that allow 3" of clearance to prevent hair or other things from getting trapped in the suction area. Mr. Conway also mentioned that the City of Palm Desert's Set To Save program allows residential owners to install these preventive measures in their homes; a savings of several thousand dollars a year. The cost to upgrade the Housing Authority pools was approximately $40,000 of which the Agency received $12,000 back in rebates. The annual savings is considered over 80,000. Wade Tucker inquired if security cameras are installed at the Housing Authority properties, stating several incidents at Las Serenas where outside guests have been seen opening doors and going through garbage cans as well as a recent theft incident in the laundry facility. 7 Housing Commission Minutes G. W Rec: VII. IiI:: Janet Moore stated that One Quail Place has security cameras installed. Courtesy patrol inspects the properties as part of their daily routine. The installation of security cameras has been considered but is costly since most of the cameras at One Quail Place have been vandalized. Staff is also discussing this matter with the City Attorney with regard to the issue of privacy since the properties are technically not considered public. Signs are posted at the properties that read "no soliciting", "under surveillance" etc. Mrs. Moore noted that residents are encouraged to report any issues to the property manager since they are familiar with the property. Teresa Vakili stated that with a large complex as Las Serenas where there are a lot of vehicles, iYs typical to attract thieves. Tenants are encouraged to report any incident to the property managers. Mr. Conway stated that most of the property managers attend seminars provided by the Sheriff's Crime Free Prevention who have also done several presentations at the properties. COUNTRY VILLAGE DEMOLITION PRESENTATION A power-point presentation was provided by Martin Alvarez of Country Village's deconstruction project. Mr. Alvarez reported that although the goal was to divert 75% of construction debris currently over 80% has been diverted from landfills. NEW BUSINESS AWARD OF CONTRACT TO ASSOCIATION REPLACEMENT FUND STUDY By Minute Motion: RESERVES, INC. — Action: Motion was made by Commissioner Turner and seconded by Commissioner Lewis to forward the recommendation to the Housing Authority to authorize staff to negotiate a professional services contract with Association Reserves, Inc. in an amount not to exceed $49,250.00 Janet Moore reviewed the staff report. CONTINUED BUSINESS Housing Commission Minutes VIII. INFORMATIONAL ITEMS A. HOUSING AUTHORITY NEWSLETTER April 8, 2009 Newsletters were provided to the Commission for April. B. AGENCY HOME IMPROVEMENT PROGRAM UPDATE An update on the Home Improvement Program (HIP) was provided to the Commission for review. James Conway summarized the report. IX. NEXT MEETING DATE — May 13, 2009 ADJOURNMENT With members of the Housing Commission concurrence Verna Smith, Housing Commission Chair, adjourned the meeting at 4:43 p.m. U l-/ 'v Patty L ecording Secretary E I---- PALM DESERT REDEVELOPMENT AGENCY INTEROFFICE MEMORANDUM TO: RACHELLE KLASSEN, CITY CLERK FROM: PATTY LEON, RECORDING SECRETARY-f' %\ Iv DATE: SUBJECT: APRIL 9 2009 HOUSING COMMISSION MINUTES Attached is the following Housing Commission Meeting Minutes approved at the Housing Commission meeting held April 8, 2009: c-ir c!'c z/ MARCH 11, 2009 BY HOUSG AUTH 5 O Please submit to the Housing Authority Board. pN y 09 Thank you. VERI IED BY: /!;//i Original on file with City Glark's Off+^ cc: John Wohlmuth, Executive Director C l Q 9 l1 CITY OF PALM DESERT HOUSING COMMISSION MINUTES MARCH 11, 2009 I. CALL TO ORDER Verna Smith, Housing Commission Chair, convened the meeting at 3:30 p.m. II. ROLL CALL Present: Donna Lewis Natalie Russo Leo Sullivan Verna Smith Wade Tucker Jane Turner Also Present: Richard S. Kelly, Councilmember Liaison Justin McCarthy, ACM for Redevelopment Dave Yrigoyen, Director of RDA/Housing Janet Moore, Director of Housing Martin Alvarez, Redevelopment Manager Jessica Gonzales, Management Analyst James Conway, Project Coordinator Patty Leon, Recording Secretary Guest(s): Teresa Vakili, RPM Company Donnie Garibaldi, RPM Company Marilyn Mack, RPM Company Spencer Knight, Landscape Manager Veronica Tapia, Redevelopment Account II III. ORAL COMMUNICATIONS IV. CONSENT CALENDAR Members Absent: A. MINUTES of the Regular Housing Commission meeting of February 11, 2009. Housing Commission Minutes March 11. 2009 With a Motion made by Commissioner Turner and seconded by Commissioner Lewis the minutes of February 11, 2009 were unanimously approved. V. REPORTS AND REMARKS A. COMMISSION REPORTS Verna Smith informed the Commission that Natalie Russo and her had met with Janet Moore to discuss ideas to better serve the Housing Commission. One idea discussed was the possibility of canceling meetings that do not have action items and possibly visit a property in a project phase; both Natalie Russo and Verna Smith felt it would be beneficial to new members. Also suggested by both commissioners is the ability to allow Commissioners to have a platform during the course of the meetings to voice their opinions and be inquisitive about anything without interrupting the meeting; Mrs. Smith felt it was a little stiff in the past. She also stated that she would like more input from Mr. Richard Keliy from the standpoint of the City Council. She further noted that she would like to see the Commission interact more and expressed that the Commission is here to be supportive of staff. Wade Tucker asked about the process of canceling a meeting. Janet Moore stated that in the event a meeting could be canceled the Chairman would be contacted and then the meeting may be canceled. Canceled and adjourned meetings are posted on the City's public bulletin boards. Mrs. Smith asked the Commission on their thoughts with regard to canceling meetings with no action items. Jane Turner stated that she always felt it was not a good use of her time to come in when there were no action items to discuss at a meeting. She expressed that she was in favor of canceling a meeting that did not require action from the Commission. Donna Lewis agreed and asked that the monthly informational reports be mailed in the event a meeting is canceled. Leo Sullivan commented that this topic has been discussed in the past, given that he has the most tenure as a member of this Commission. He noted that a meeting went dark one year and an item had to be rushed the following month. He expressed that he personally did not like to see a meeting go dark for that reason. He also stated that staff has brought last minute items to the agenda for the Commission to act on. 2 Housing Commission Minutes March 11, 2009 Mrs. Smith noted that if there was an emergency item it would definitely call for a meeting. She stated that meetings will go forward as scheduled and if there is a need to cancel a meeting Janet Moore and herself will make that decision. Ms. Tuner asked if the Commission could meet via conference call. Mrs. Moore replied that a conference call would be di cuit since all meetings require taking minutes. She noted that in the event the Commission would like to meet at a property, she suggested meeting on the same day and time as the Housing Commission meeting since it would have to be posted and identified as a meeting. She reported that the City Attorney will be present at the next meeting to discuss the Brown Act which had some changes that apply to the Commissioners. B. MONTLY OCCUPANCY STATUS REPORT RPM WEEKLY ACTIVITY STATISTICS The Commission reviewed the Monthly Occupancy Status Report and Weekly Activity Statistics for January. C. REPORT #1 - MONTHLY OCCUPANCY AND AVERAGE RENT STATEMENT The Commission reviewed the Monthly Occupancy and Average Rent Statement for January. Jane Turner asked if the tra c count may be added to the Report. Teresa Vakili replied that the traffic count may be added to the Report. Wait list applicants are contacted by telephone (limit of two calls) and mail with a respond timeframe of ten days. Walk-in tra c is determined on whether qualifications are met according to the program. Donnie Garibaldi stated that the traffic report is currently kept internally and used to assist RPM with advertising and other relative purposes. At this time, Donnie Garibaldi, President of RPM Company, and Marilyn Mack, Chief Officer of Operations, were introduced to the Commission. Verna Smith welcomed both RPM guests and commented that Teresa Vakili does a wonderful job for the Housing Authority. 3 Housing Commission Minutes March 11, 2009 D. REPORT #2 — MONTHLY NET OPERATING INCOME STATEMENTS The Commission reviewed the Monthly Net Operating Income Statements for January. Verna Smith asked about Natalie Russo's request at the last meeting to include a column with respect to the monthly totals for the prior month for comparison. Janet Moore stated that her comment with regard to the monthly totals for the prior month will be included on a going forward basis. She mentioned she would review the Report to compile that information. She apologized that it was not included this month and stated that staff has been working on the budget. E. HOUSING AUTHORITY PROPERTIES UPDATE The update on the Housing Authority properties was reviewed by the Commission. James Conway summarized the report and addressed projects in process such as California Villas Phase II, recycling enclosures, pool equipment upgrades to comply with the Virginia Graeme Baker Act, and Taos Palms renovation efforts. Pictures of Country Village demolition progress were distributed to the Commission. Martin Alvarez stated that the demolition is 75% complete. All the structures have been removed. The contractor is sorting through all the wood, metal, and beams to reuse as well as the asphalt and concrete, including footings and slabs that will be used as base material for future driveways and roadways. He noted that a complete report of the demolition process to include a slideshow will be presented to the Commission at the next meeting. Verna Smith asked if there was more interest from contractors bidding for projects considering the economy. James Conway replied yes. Natalie Russo inquired on the total number of service requests compared to the previous months. Teresa Vakili responded that there is an average per property and per unit size ranging from 40% to 60% of service calls. Some of the service requests mentioned were AC/heater and/or leaking faucets with same day turnaround. VI. NEW BUSINESS A. AWARD CONTRACT NO. C28410 TO TREE ELEMENTS, INC. OF YORBA LINDA, CALIFORNIA FOR THE CITYWIDE TREE PRUNING PROGRAM PROJECT NO. 932-09) 0 Housing Commission Minutes March 11, 2009 B. AWARD CONTRACT NO. C28420 TO LEON'S LANDSCAPING & TREE SERVICE, INC. OF THOUSAND PALMS, CALIFORNIA FOR THE CITYWIDE TREE REMOVAL PROGRAM (PROJECT NO. 933-09) C. AWARD CONTRACT NO. C28400 TO ANDY'S LANDSCAPE PLUS, INC. OF BERMUDA DUNES, CALIFORNIA FOR THE CITYWIDE PALM TREE PRUNING PROGRAM (PROJECT NO. 931-09) Spencer Knight reviewed the staff reports, highlighting all three components of the yearly tree maintenance efforts within the City to include Housing Authority properties. In past years, all three maintenance services were included in one contract and proved to be a problem in terms of schedules. Last year the services were split in three separate contracts and found that there are a number of local tree pruning companies that are experts at pruning palm trees and are more economical. He noted that most outside tree pruning companies are not experts with palm trees. In addition, staff got a better unit cost by separating the contract for the palm trees. The tree removal was also separated since it always got done at the end of the contract which created scheduling problems for other projects. From a budgetary cost standpoint, Mr. Knight stated that the trees are not pruned every year. Trees are on a schedule and pruned anywhere from 3 to 5 years. There are certain trees that get pruned every year due to their growth habit such as mesquite trees. He noted that when he is requesting tree pruning services every year it does not necessarily mean every tree is being pruned with the exception of the palm trees. Verna Smith questioned why the palm trees at Desert Wiliow were not pruned. Mr. Knight stated that Desert Willow was designed to have a naturalistic style. There are a number of facilities that have the naturalistic design such as Entrada Del Paseo, Baja Park, and Desert Willow. Wade Tucker questioned the olive trees and stated there are a number of olive trees at Las Serenas that make a mess every year. Mr. Knight replied that the trees located at the Housing Authority properties are sprayed yearly. However, there is only one licensed spray company in the Coachella Valley that missed their timing this year. Staff is looking into this matter and might have to seek spray companies outside the valley which may increase the unit cost. Janet Moore stated that besides spraying the olive trees at the properties there are other items that are taken into consideration by the Landscape Department. The arborist has a different perspective of pruning trees and its proper timing but 5 Housing Commission Minutes March 11, 2009 has been considerate of the residents and their use of the properties. One example provided was the issue from the palm trees' flowers in the pools and how the timing to prune them may not be necessarily conducive to residential use. Mr. Knight mentioned that each tree is an individual and bloom on their genetic cycle depending on climatic conditions. If the palm trees flower stocks are pruned too soon they push another stock and end up flowering twice a year. He noted that if this becomes an issue they can prune twice a year but will be costly. Mr. Tucker questioned how long the palm trees are kept tied once they are planted on the ground. Mr. Knight replied that the University of California conducted two studies with regard to tying palm frawns and found that it does not affect the facilitation to transplant the trees. The theory behind tying the palm frawns is to avoid losing moisture which can cause the palm tree to go into stress early. In addition, tying the palm trees stops the production of sugar which depletes their food supply to grow and re-root. Mr. Knight explained that there is only one major palm tree supplier for large palm trees in the Valley and they don't deliver them untied. Donna Lewis commented on contracting with the lowest bidder and asked if that was a standard procedure. Mr. Knight stated that it was mandated to award a contract to the lowest bidder unless staff can establish a cause that the contractor can't execute the requirements. Upon question of the contractors' qualifications, Mr. Knight noted that most of the companies listed on the staff reports have done work for the City of Palm Desert and have shown they are qualified to do this type of work. Janet Moore added that there are some situations, not necessarily in this case, where qualifications are essential. She noted that in this case, these companies have to demonstrate they are able to perform this type of work and then staff is obligated to contract with the lowest bidder. Mr. Knight explained the qualification process. Trees service companies are required to have an ISA Certification, Arborist Certification from the International Society of Arboriculture. Furthermore, they are asked to cut a tree at the Civic Center Park as part of the qualification process and trained until acceptable. If the contracted company deviates from the requirement, they are pulled from the job and retrained again until acceptable. Mr. Knight stated that the Housing Authority properties have conventional landscaping since the properties are older. Native plants are pruned the 0 Housing Commission Minutes March 11, 2009 naturalistic style which means the plants are pruned to encourage the normal growth habit as opposed to a particular shape such as a box or ball as seen in some of the Housing Authorities properties. He noted that the plant material in Palm Desert is desert design and are pruned the naturalistic style. He further mentioned that the palm trees are pruned horizontal as opposed to the 180 paint brush style. Rec: By Minute Motion: Action: Motion was made by Commissioner Turner and seconded by Commissioner Tucker to forward the recommendation to the Palm Desert Housing Authority to approve an award of Contract No. C28410 to Tree Elements, Inc. for the Citywide Tree Pruning Program 2009 for the Housing Authority in the amount of $34,869.38 plus 10% contingency. Rec: By Minute Motion: Action: Motion was made by Commissioner Turner and seconded by Commissioner Tucker to forward the recommendation to the Palm Desert Housing Authority to approve an award of Contract No. C28420 to Leon's Landscaping & Tree Service, Inc. for the Citywide Tree Removal Program 2009 for the Housing Authority in the amount of 2,125.00 plus 10% contingency. Rec: By Mintue Motion: Action: Motion was made by Commissioner Turner and seconded by Commissioner Tucker to forward the recommendation to the Palm Desert Housing Authority to approve an award of Contract No. C28400 to Andy's Landscape Plus, Inc. for the Citywide Palm Tree Pruning Program 2009 for the Housing Authority in the amount of $7,627.50 plus 10% contingency. D. SAGECREST SENIOR APARTMENTS Janet Moore summarized the memo provided by Veronica Tapia which proposes the 2008-2009 budget for Sagecrest Senior Apartments. As previously mentioned at the last meeting, Janet Moore stated that the Agency acquired the newly constructed property known as Sagecrest Senior Apartments adjacent to Sagecrest and Laguna Palms. The goal, long term, is to eventually combine both Sagecrest and Sagecrest Senior properties and determine a budget that will be 7 Housing Commission Minutes March 11, 2009 suitable for multi-family and senior units. A family home located in front of the Sagecrest Senior site was also acquired by the Redevelopment Agency. Once the existing owner vacates the home, staff will have access to the property. The Agency will now own the properties contiguous from the corner of San Pascual to Laguna Palms. Mrs. Moore stated that based on the discussions during the Housing Authority tour in November with regard to the use of the existing Sagecrest property, it was determined to possibly deconstruct. Based on the analysis from local architects, the drainage and ADA accessible rehabilitation of the site is not the best option. In the event Sagecrest is deconstructed, both properties will be combined and made usable for Housing. Mrs. Moore stated that the budget for Sagecrest Senior is a suggestion based on past history of senior properties of equal size. A significant portion of the existing 14 unit (Sagecrest) budget has not been used and therefore staff is asking permission to subsume Sagecrest Senior's budget into the current existing budget. Staff is not asking for an appropriation at this time; this information is being provided to the Commission to make them aware of the changes and the allocated expenses to the senior site. She noted that the units are not subject to capital improvements but livability adjustments even though they are brand new. One issue mentioned was the water heater location situated 6 ft from the ground on top of a pantry. Staff is looking into bringing the water heaters to ground level to avoid future leaks. This alteration is expected to be completed before the units are occupied. Staff is working with RPM to install doors to enclose the water heaters. Leo Sullivan asked about the amount allocated for Total Rental Income, given that the property is vacant. Mrs. Moore anticipates occupancy by June 2009 and therefore an amount was budgeted for the total rental income. Upon question, Mrs. Moore stated that Sagecrest Senior Apartments consist of fourteen (14) one-bedroom apartments with an age limit of 62. All of the other senior Housing Authority properties are 55 and older. She noted that staff might request for special consideration to make a recommendation to alter the age limit as the rest of the senior properties. She explained that when the property was built by a private developer it was part of his requirement with the Planning Department that it would be a restrictive property of 62 and older. She mentioned that at one time, a Housing Authority property had an age limit of 62 and was lowered to 55. 0 Housing Commission Minutes March 11, 2009 Richard Kelly, Councilmember Liaison, stated that the City Council is the responsible party for setting up the age restrictions and should be consistent with all senior properties. Mrs. Moore informed the Commission that the wait list at the senior properties is down and by raising the age limit to 62 would make it difficult to keep the units occupied. Mr. Sullivan questioned how the figures for the Total Rental Income were determined and commented that knowing what we have done in the past he felt there should be zero income before the end of the fiscal year. Mrs. Moore replied that those figures are calculated at an average rent of $450 a month for a month and a half of occupancy. She noted that because the proposed budget is being subsumed within the current Sagecrest budget a change to the revenue will not affect the budget. Mr. Kelly commented that staff has to provide some type of estimate and if the Commission does not agree with the estimate then they should make a recommendation to change it. Mr. Sullivan commented that the way the Commission has looked at things and the way things have been accomplished over the past several years, he felt it should be zero at this point and wait until the next fiscal year. Natalie Russo asked if there was a wait list in place for Sagecrest Senior Apartments. She also inquired if the units will be occupied after the water heaters have been relocated. Ms. Vakili stated that there is a waiting list in place for this property. Once the units are move-in ready, they will be shown to applicants. Mrs. Moore mentioned that the alterations are minor and one unit will be modified first to show wait list applicants. Staff will also take this opportunity to install recycling bins. James Conway stated that the installation of recycling bins has begun. Natalie Russo commented that she would prefer to see an amount instead of zero in hopes the units will be occupied by June. Mrs. Moore stated that if the Commission agrees to zero for Sagecrest Senior if rent is coilected the revenue will show an increase. Housing Commission Minutes Rec: By Minute Motion: March 11, 2009 Action: Motion was made by Commissioner Sullivan and seconded by Commissioner Tucker to accept the proposed 2008-2009 operations budget for Sagecrest senior apartments with a change to the Total Rental Income of zero. E. 2009-2010 BUDGET Janet Moore referenced the memo provided by Veronica Tapia which summarized the proposed budget that will be included in the City's Comprehensive Financial Plan. The Director of Finance was made aware that if changes are suggested by the Commission, a final approval might be in April to allow sufficient review from the Commission. In the past, the Finance Director accepted the budget with changes and/or suggestions from the Commission. Mrs. Moore referenced page 3 and summarized the Totals for All Properties Budget Comparisons. She noted that the Net Profit and Loss, Capital Expenses of and Reserve Expense figures resulted in a negative after the Net Operating Income. However, staff reviewed the capital and reserves expenses and found those items to be typical improvements/upgrades. In addition, Teresa Vakili was presented with a Reserve Expense of approximately 1.5 million dollars of which . she reduced to 1.1 million. Both staff and RPM comprehensively reviewed each line item and made the best efforts to be consistent with what is needed and looked at items that may possibly be postponed. An example provided was the pool furniture at One Quail Place which needs to be replaced but opted to dipping and re-strapping at this time. The Reserve Expense items include the HVAC systems, roof repairs and appliances with the exception of cabinets in kitchens and bathrooms. There are monies set aside for unexpected incidents such as fires. She also noted that the Housing Authority has cut their budget for the properties by $230,000 and has an overall budget of about 5 million. She further noted that RPM's contract will not have an increase this year and that RPM has been very conservative with the budgets, given the constraints of the City and Agency. Upon question on the budget for Country Village, Mrs. Moore stated that the money for the deconstruction project is in the budget. The proposed budget for the new project is in the Redevelopment Agency budget. There is a line item in the Agency's budget for 20 million dollars that is covered by bond funds for that purpose; it is being proposed for the 2009-2010 budget year. Mrs. Moore referenced the various sources of revenue to include laundry revenue and also noted the expenses relative to last year. 10 Housing Commission Minutes Rec: By Minute Motion: March 11, 2009 Action: Motion was made by Commissioner Sullivan and seconded by Commissioner Russo to forward the recommendation to the Finance Director to include the 2009-2010 Palm Desert Authority Operating, Capital, and Replacement Budgets in the City of Palm Desert's Comprehensive Plan for 2009-2010 to be presented to the Housing Authority Board for approval at a future meeting. VII. CONTINUED BUSINESS VIII. INFORMATIONAL ITEMS A. HOUSING AUTHORITY NEWSLETTER Newsletters were provided to the Commission for March. B. AGENCY HOME IMPROVEMENT PROGRAM UPDATE An update on the Home Improvement Program (HIP) was provided to the Commission for review. James Conway summarized the report. Verna Smith asked if the work is contracted out or handled by staff. Mr. Conway stated that the consultant coordinates the inspections, work write- ups and contracts and then provides them to staff for review. The application process is reviewed by the Housing Department. As previously requested by Leo Sullivan, Mr. Conway provided two HIP signs that show the comparison of a standard size to a larger size. He mentioned that he had met with the Planning Department to verify the ordinance established with regard to posting signs in residential areas. Mr. Richard Kelly, Councilmember Liaison, commented that if signage is needed we should be consistent with everyone else, i.e. real estate signs etc., to comply with the ordinance in place as well as avoid problems with homeowners. Commission agreed signage should comply with the ordinance established by the Planning Department. 11 Housing Commission Minutes March 11, 2009 Natalie Russo inquired on the Set To Save Energy Program and asked if those upgrades can be done at the same time as a HIP project. James Conway stated that the Set to Save program is a separate program and is handled by the City's Office of Energy Management. There is a component in the HIP program that allows homeowners to do energy upgrades such as retro windows, efficient water heaters, etc. IX. NEXT MEETING DATE — April 8, 2009 Janet Moore stated that the City Council meetings for May have been changed at the request of the City Council to the 15 and 3`d Thursdays as opposed to the 2nd and 4`h. Mrs. Moore suggested that the Housing Commission meeting remain on its regular scheduled meeting date of May 13th. Commission agreed to keep the May 13`h meeting as scheduled. ADJOURNMENT With members of the Housing Commission concurrence Verna Smith, Housing Commission Chair, adjourned the meeting at 4:37 p.m. Patty Leon, F ecording Secretary 12 r - - i TO: FROM: DATE: SUBJECT: PALM DESERT REDEVELOPMENT AGENCY INTEROFFICE MEMORANDUM RACHELLE KLASSEN, CITY CLERK PATTY LEON, RECORDING SECRETARY ( v) MARCH 12, 2009 HOUSING COMMISSION MINUTES Attached is the following Housing Commission Meeting Minutes approved at the Housing Commission meeting held March 11, 2009: r1.._ FEBRUARY 11, 2009 d(Y HOUSG AUTH Q Please submit to the Housing Authority Board. Ori /a i , a 9 Thank you. VERIr=1ED BY: 'p Original on file with City erk's Office O cc: John Wohlmuth, Executive Director CITY OF PALM DESERT HOUSING COMMISSION MINUTES CALL TO ORDER FEBRUARY 11, 2009 Verna Smith, Housing Commission Chair, convened the meeting at 3:30 p.m. II. ROLL CALL Present: Donna Lewis Natalie Russo Verna Smith Wade Tucker Jane Turner Members Absent: Leo Sullivan Also Present: Richard S. Kelly, Councilmember Liaison Justin McCarthy, ACM for RedevelopmenUlnterm Executive Director Dave Yrigoyen, Director of RDA/Housing Janet Moore, Director of Housing Martin Alvarez, Redevelopment Manager Jessica Gonzales, Management Analyst James Conway, Project Coordinator Patty Leon, Recording Secretary Guest(s): Teresa Vakili, RPM Company Dori Burnside, Guest III. ORAL COMMUNICATIONS IV. CONSENT CALENDAR A. MINUTES of the Regular Housing Commission meeting of January 14, 2009. With a Motion made by Commissioner Tucker and seconded by Commissioner.Lewis the minutes of January 14, 2009 were unanimously approved. Housing Commission Minutes V. REPORTS AND REMARKS A. COMMISSION REPORTS February 11, 2009 Janet Moore reported on the budget considerations, stating that both the City and Agency staff have been tasked to carefully review the budget for 2008/2009 as well as 2009/2010. The mid-year adjustments approved by the Housing Commission have been forwarded to the Housing Authority for review. Those adjustments were further reviewed to ensure there were no items that could be adjusted. With regard to the budget for 2009/2010, staff reviewed each line item to ensure that the budget will be expended. Staff also looked at items that could potentially be delayed another year. She noted that staff is in the process of doing a reserve study. Once a reserve study analyst is selected, staff will bring that item to the Housing Commission for review. The analyst will identify the capital assets of the properties that are included in the study and assist in planning for future maintenance requirements as well as annual reserve deposit requirements. She stated that the reserve study may have an impact on the budget process, given that staff is taking a very comprehensive approach. Staff will bring a preliminary 2009-2010 budget next month for the Commission's review. Verna Smith asked if the Agency is in the process of purchasing properties. Mrs. Moore replied that staff is in the process of looking at a property adjacent to a Housing Authority property. In the event the Agency acquires the property, a budget will be brought forward for the Commission's review. This particular property is a newly constructed senior complex consisting of 14 units, and might require capital improvements to the interior of the units. B. SUMMARY OF CITY COUNCIL AND REDEVELOPMENT AGENCY AGENDA ITEMS RELATED TO HOUSING, AND SUMMARY OF CITY COUNCIL, HOUSING AUTHORITY, AND REDEVELOPMENT AGENCY ACTIONS The summary was reviewed by the Commission. C. MONTLY OCCUPANCY STATUS REPORT RPM WEEKLY ACTIVITY STATISTICS The Commission reviewed the Monthly Occupancy Status Report and Weekly Activity Statistics for December. Verna Smith requested an overview of the Weekly Activity Statistics Report. 2 Housing Commission Minutes February 11, 2009 Teresa Vakili stated that the Weekly Activity Statistics Report shows the properties occupancy status. The report includes units in the categories of vacant, occupied, pending as well as occupied units on notice to vacate. Mrs. Smith referenced the Monthly Occupancy Status Report and asked as to the process of filling up vacancies with applicants from the wait list. Ms. Vakili responded that based on the Stipulation requirement a certain amount of units have been allocated in the very low, low and moderate income levels, which means that an applicant is selected from the wait list based on the income level assigned for that unit. Applicants are contacted by telephone (limit of two calls) and mail with a respond timeframe of ten days. At that time, the applicant is required to provide updated income information in the event there are any changes since their original placement on the list. Ms. Vakili further noted that this process takes some time to accumulate all the documentation needed to qualify. D. REPORT #1 - MONTHLY OCCUPANCY AND AVERAGE RENT STATEMENT The Commission reviewed the Monthly Occupancy and Average Rent Statement for December. E. REPORT #2 — MONTHLY NET OPERATING INCOME STATEMENTS The Commission reviewed the Monthly Net Operating Income Statements for December. Wade Tucker asked if the economy has affected any of the properties in terms of rent payments. Teresa Vakili stated that the affordable rental properties are not affected as much as the market properties. She mentioned that during the last month there were a couple of tenants who gave notices to vacate due to loss of employment. Janet Moore stated that there has been an increase in "emergency recertifications" which means that when a household's income changes and remains consistent for over 90 days a second recertification may be requested to determine whether the rental rates need to be adjusted. Natalie Russo referenced the report and asked if a column may be added to include the monthly totals for the prior month for comparison. 3 Housing Commission Minutes February 11, 2009 Mrs. Moore stated that she would review the report to include those figures on a going forward basis. F. HOUSING AUTHORITY PROPERTIES UPDATE The update on the Housing Authority properties was reviewed by the Commission. Pictures of Country Village demolition and Fire Department training session were distributed to the Commission. Martin Alvarez stated that two of the pictures show the removal of lead and asbestos prior to commencing the demo. Jane Turner inquired on a date the demolition would be completed. Martin Alvarez anticipated completion of the demolition early March. Verna Smith inquired on the inspection of the roofs as previously discussed at the last meeting. James Conway stated that staff is currently working with two contractors that will provide an evaluation of the conditions of the roofs of all the properties. He reiterated that there is money in this year's budget to address priority items. Mrs. Smith asked if all the units at Taos Palms will be upgraded. Mr. Conway replied that the plan is to renovate all units. The renovation will take place in two stages to allow the existing tenants to transfer to a renovated unit. He noted that he anticipated going out to bid by mid March. Ms. Turner inquired on the landscaping and water conservation at the properties. Janet Moore replied that the landscape at the properties is consistently being reviewed to conserve natural resources. Climate activated sensors were installed at both Laguna Palms and California Villas that measure moisture and provides water to plants according to temperature. Mr. Conway added that the sensors are self adjusted which means they are able to shut down on rainy days. Most of the properties have drought tolerant landscape with the exception of California Villas which had 100% turf and was reduced to approximately 30% on usable areas. The landscape department is very considerate to water conservation and have been mindful of keeping turf out of projects unless the area is justified as usable space. C! Housing Commission Minutes February 11, 2009 Mrs. Smith commented that there has been a lot of talk with regard to water expense and/or lack of water and asked if the City has any plans for our water supply. Mrs. Moore stated that Landscape Manager Spencer Knight would be the appropriate staff member to ask and stated he will be in attendance at the next Housing Commission meeting. Councilmember Liaison Richard Kelly stated that the City is a leader with regard to water conservation. The City was the first City to include drought tolerant landscape and climate activated controllers, a collaboration with Coachella Valley Water District (CVWD). Also mentioned was the usage of recycled water at golf courses. Mr. Conway stated that staff is always looking at ways to conserve water at the properties. One idea mentioned was to implement meters to reclaim and recycle water specifically for landscaping. He noted that he had attended a municipal water conference last year. Mr. Kelly stated that reclaimed water uses a certain amount of regular water due to its high level of chemicals, and therefore CVWD recently installed piping to allow water from the Colorado River to Palm Desert and mix with the reclaimed water. VI. NEW BUSINESS VII. CONTINUED BUSINESS VIII. INFORMATIONAL ITEMS A. HOUSING AUTHORITY NEWSLETTER Newsletters were provided to the Commission for February. Janet Moore reminded the Housing Commission that the newsletters are available at the meetings and not mailed as part of the agenda packet. Mrs. Moore also mentioned that it is not very cost effective to mail the agenda packets with the sorters and asked the Commission if they would be willing to keep the sorters and staff will mail the agenda items denoting the sorter section. Commission agreed to keep their sorters and to have the agenda items mailed. At this time, Verna Smith informed the Commission of the "State of the City" meeting at Desert Willow on Thursday, February 19, 2009, at 11:30 a.m. Housing Commission Minutes February 11, 2009 B. AGENCY HOME IMPROVEMENT PROGRAM UPDATE An update on the Home Improvement Program (HIP) was provided to the Commission for review. James Conway summarized the report, stating there are 16 in the application process. Jane Turner asked on the time frame to process applications. Mr. Conway stated that applicants take time to accumulate all the documentation needed to qualify. Staff does encourage all interested applicants to submit the documentation all at once to expedite the process. He noted that there is a lot of documentation required with the application. Janet Moore stated that once all the documentation is submitted it is a very realistic turn-around as well as responses back to the homeowner. IX. NEXT MEETING DATE — March 11, 2009 Councilmember Liaison Richard Kelly addressed the Commission and stated as a member of this Commission there may be times that they might think the meetings are quick and feel they are not doing as much as they ought to be doing. He reminded the Commission that they are in charge of 14 multi-family and senior properties including projects in renovation. He noted that Housing is doing well thanks to the Housing Commission and staff who are doing an outstanding job. He mentioned that this Commission is doing what they are supposed to do even though a meeting might not last more than half an hour. He noted that indicates everything is under control. He reiterated that they don't have to have a longer meeting to prove they are doing a good job and in fact the shorter the meeting the better job they are doing. On behalf of the City Council, Mr. Kelly thanked the Commission for doing a great job and expressed how valuable this Commission is for having one of the biggest operations in the City. On behalf of the Commission, Verna Smith thanked staff and stated that the Commission depends on them. ADJOURNMENT With members of the Housing Commission concurrence Verna Smith, Housing Commissi Cha journed the meeting at 4:00 p.m. Patty Leon, ecording Secretary 0 TO: FROM: DATE: SUBJECT: 1 _. PALM DESERT REDEVELOPMENT AGENCY INTEROFFICE MEMORANDUM RACHELLE KLASSEN, CITY CLERK PATTY LEON, RECORDING SECRETARYYj„ V FEBRUARY 12, 2009 HOUSING COMMISSION MINUTES Attached is the following Housing Commission Meeting Minutes approved at the Housing Commission meeting held February 11, 2009: JANUARY 14, 2009 Please submit to the Housing Authority Board. Thank you. R , -,d BY HOUSG AUTH ON 07 0• CI i' VERI IED BY: K Original on file with City lerk's Office d CITY OF PALM DESERT HOUSING COMMISSION MINUTES I. CALL TO ORDER JANUARY 14, 2009 Verna Smith, Housing Commission Vice-Chair, convened the meeting at 3:30 p.m. II. ROLL CALL Present: Members Absent: Donna Lewis Natalie Russo Leo Sullivan Verna Smith Wade Tucker Jane Turner Also Present: Richard S. Kelly, Councilmember Liaison Justin McCarthy, ACM for RedevelopmenUlnterm Executive Director Dave Yrigoyen, Director of RDA/Housing Janet Moore, Director of Housing Martin Alvarez, Redevelopment Manager James Conway, Project Coordinator Patty Leon, Recording Secretary Guest(s): Teresa Vakili, RPM Company III. ORAL COMMUNICATIONS IV. CONSENT CALENDAR A. MINUTES of the Regular Housing Commission meeting of December 10, 2008. Housing Commission Minutes U Q With a Motion made Commissioner Wade unanimously approved. January 14, 2009 by Commissioner Russo and seconded by the minutes of December 10, 2008 were Pending was Commissioner Verna Smith's acceptance to the o ce to which she was elected; Verna Smith accepted the position as Chair for 2009. REPORTS AND REMARKS COMMISSION REPORTS Martin Alvarez reported on Country Village. He stated that a Notice to Proceed was recently issued for the deconstruction of 66 units. Subsequent to a 10-day period to notify the Air Quality Control Board, the removal of lead and asbestos will begin followed by the deconstruction. He noted that 75% of the materials created by the deconstruction will be diverted from the landfills. Upon question of an ADHOC subcommittee meeting, Janet Moore stated that an architect is currently being sought, noting that it may be the same architect that provided the conceptual design. Once an architect has been awarded a contract, the ADHOC subcommittee will meet again. B. SUMMARY OF CITY COUNCIL AND REDEVELOPMENT AGENCY AGENDA ITEMS RELATED TO HOUSING, AND SUMMARY OF CITY COUNCIL, HOUSING AUTHORITY, AND REDEVELOPMENT AGENCY ACTIONS The summary was reviewed by the Commission. C. MONTLY OCCUPANCY STATUS REPORT RPM WEEKLY ACTIVITY STATISTICS The Commission reviewed the Monthly Occupancy Status Report and Weekly Activity Statistics for November. Natalie Russo referenced the Monthly Occupancy Status Report and questioned the number of wait list contactees for Neighbors and Palm Village. Teresa Vakili stated that Neighbors Apartments had four units that became available the prior month and therefore the property manager contacted and reviewed 38 wait list applicants to prequalify for those units. Wait list applicants were also contacted to fill the remaining ADA units at Palm Village Apartments. 2 Housing Commission Minutes January 14, 2009 Wade Tucker commented that Las Serenas recently had a high number of move-outs. Teresa Vakili stating that several tenants either passed away or requested to be transferred to assisted living facilities. Ms. Vakili noted that once those units became vacant, RPM took the opportunity to upgrade before preleasing. Jane Turner asked on the vacant units at Palm Village, Teresa Vakili responded that those units are ADA accessible and are not desirable to most applicants, for that reason, the property manager has a hard time preleasing. D. REPORT #1 - MONTHLY OCCUPANCY AND AVERAGE RENT STATEMENT The Commission reviewed the Monthly Occupancy and Average Rent Statement for November. Verna Smith asked if the rents would have to be adjusted due to the economy crisis. Teresa Vakili stated that the economy has affected a lot of people in terms of employment. The Administrative Plan states that a household's income has to drop 25% for three consecutive months in order to determine any rental rate adjustment. She noted that it would be difficult to recertify every month; tenants are asked to recertify their eligibility on an annual basis. She noted that this is a concern and is being addressed. Wade Tucker asked if the income levels have been adjusted. Mrs. Vakili responded that those are adjusted by the County of Riverside annually during the month of April. Janet Moore stated that the rent setting policy allow procedures to set and implement rental rates annually, according to the area median income (AMI) for Riverside County. She stated that a rent survey study is conducted by an appraiser once every other year. The appraiser will identify the Housing Authority properties and establish where the rent structure should be compared to the market environment. On the alternating year, the rents are increased based on the AMI increase for that year of approximately 2% or 3%. Mrs. Moore noted that this increase should not be an issue with the tenants that are not making more money. She noted that over the last ten years the consistent increase has been an average of 3%. She further noted that a rent survey study is being conducted this year. E7 Housing Commission Minutes January 14, 2009 Mr. Tucker asked if the other cities work the same way as Palm Desert in terms of their rental structure. Mrs. Moore replied that Palm Desert is unique in that Palm Desert own and operate their affordable housing properties. In a lot of cases, such as other cities, the developers that built apartment complexes own and operate them such as Hovley Gardens Apartments. Their rents are established by the parameters within their funding sources i.e. federal dollars. E. REPORT #2 — MONTHLY NET OPERATING INCOME STATEMENTS The Commission reviewed the Monthly Net Operating Income Statements for November. F. HOUSING AUTHORITY PROPERTIES UPDATE The update on the Hbusing Authority properties was reviewed by the Commission. Leo Sullivan questioned the materials that might be salvageable during the deconstruction of Country Village. Martin Alvarez stated that the asphalt and concrete are items being considered reusable for future parking lot areas and driveways. With regard to the removal of boilers and water heaters at Country Village, Mr. Alvarez stated that those items exist as mechanical equipment that can be used at other apartment complexes. Other products mentioned as green waste are wood and metal. Mr. Sullivan inquired on the existing boilers at Country Village. James Conway stated that the boilers are used for the heating equipment on certain buildings. He noted that they are ray packs that can be utilized for pool heaters at other properties. Jane Turner questioned the roof conditions of the properties. Mr. Conway stated that the roofs are in good condition. There is money in this year's budget in the event repairs are needed. Roof contractors were contacted to evaluate several of the rooftops in order to prioritize over the next five years. VI. NEW BUSINESS VII. CONTINUED BUSINESS 0 Housing Commission Minutes VIII. INFORMATIONAL ITEMS A. HOUSING AUTHORITY NEWSLETTER January 14, 2009 Newsletters were provided to the Commission for January. B. AGENCY HOME IMPROVEMENT PROGRAM UPDATE An update on the Home Improvement Program (HIP) was provided to the Commission for review. James Conway summarized the report, stating he would bring photos of before and after projects at the next meeting. Leo Sullivan inquired on the HIP sign placed in front of homes during the construction period, and how at one point there was a sizable sign, 4 x 4, placed in front of a home located on Catalina Way. Janet Moore stated that during a Make a Difference Day which involved several homes, a larger sign was placed in front of a home. Mr. Sullivan stated that a sizeable HIP sign would give the program more visibility especially at Palm Desert Greens. Mr. Conway commented that a larger size would be a burden to some homeowners. Upon further discussion of modifying the HIP sign to a larger size, Janet Moore stated that there are restrictions with regard to the maximum allowed size to post signs in residential areas, but would address this request with the Planning Department. Verna Smith stated that there were several inquiries with regard to the Set to Save Energy Program at her residential complex. IX. NEXT MEETING DATE — February 11, 2009 A. SCHEDULE OF HOUSING COMMISSION MEETING DATES FOR 2009 A memo was provided to the Commission listing the Housing Commission corrected meetings scheduled for 2009. 5 Housing Commission Minutes ADJOURNMENT January 14, 2009 With members of the Housing Commission concurrence Verna Smith, Housing Commi ion Chair, adjourned the meeting at 3:55 p.m. l .0 N 1 (/ l Q L Patty Leon' Recording Secretary I r I._.L.. l . PALM DESERT REDEVELOPMENT AGENCY INTEROFFICE MEMORANDUM TO: RACHELLE KLASSEN, CITY CLERK FROM: PATTY LEON, RECORDING SECRETAR DATE: JANUARY 15, 2009 SUBJECT: HOUSING COMMISSION MINUTES Attached is the following Housing Commission Meeting Minutes approved at the Housing Commission meeting held January 14, 2009: DECEMBER 10. 2008 Please submit to the Housing Authority Board. Thank you. iY HOUSG AUTH -0 or 2 - I a l VERI IED BY: Original on file with City C erk's Office CITY OF PALM DESERT HOUSING COMMISSION MINUTES DECEMBER 10, 2008 I. CALL TO ORDER Leo Sullivan, Housing Commission Chair, convened the meeting at 3:30 p.m. II. ROLL CALL Present: Donna Lewis Natalie Russo Leo Sullivan Wade Tucker Jane Turner Also Present: Richard S. Kelly, Councilmember Liaison Justin McCarthy, ACM for Redevelopment Janet Moore, Director of Housing Martin Alvarez, Redevelopment Manager Patty Leon, Recording Secretary Guest(s): Veronica Tapia, Redevelopment Accountant Teresa Vakili, RPM Company Constance Ackryd, California Villas Tenant III. ORAL COMMUNICATIONS Members Absent: Verna Smith On behalf of the Mayor and City Council, Councilmember Liaison Richard Kelly, presented each member of the Housing Commission with a gift certificate to the McCallum Theatre and thanked them for their dedication and service. Mr. Kelly commented that he was elected as the second Vice-President of the Riverside County Transportation Commission. IV. CONSENT CALENDAR Housing Commission Minutes December 10, 2008 A. MINUTES of the Regular Housing Commission meeting of November 12, 2008. V With a Motion made Commissioner Turner unanimously approved. by Commissioner Russo and seconded by the minutes of November 12, 2008 were REPORTS AND REMARKS COMMISSION REPORTS Leo Sullivan reported on the commemoration for former commissioner Linda Ward that took place earlier today at the Community Walk Rose Garden. Mr. Sullivan thanked staff for placing a tile in memory of Linda Ward at the Rose Garden. Mr. Sullivan addressed Ms. Constance Ackryd who was present as a guest. Ms. Ackryd commented that she had an interest in applying as a member of this Commission but due to conflicting schedules would not be able to fully commit. B. SUMMARY OF CITY COUNCIL AND REDEVELOPMENT AGENCY AGENDA ITEMS RELATED TO HOUSING, AND SUMMARY OF CITY COUNCIL, HOUSING AUTHORITY, AND REDEVELOPMENT AGENCY ACTIONS The summary was reviewed by the Commission. C. RPM WEEKLY ACTIVITY STATISTICS The Commission reviewed the Monthly Occupancy Status Report and Weekly Activity Statistics for October. Teresa Vakili summarized the Weekly Activity Statistics stating that this new report replaces the Monthly Status Report. She stated that the report shows information from the first of the mbnth to the last day of the month to coincide with Reports 1 and 2. She clarified line 31 Delinquent Balances, stating that this particular report reflects the billing schedules as of December 4, 2008 prior to posting rents and therefore it shows a significant balance. She stated that typically the report is generated at the end of the month and the billing cycle is scheduled at the beginning of the month. She further noted that if this report was acceptable to the Commission she would make sure to generate this report the last day of the month to show accurate numbers. 2 Housing Commission Minutes n December 10, 2008 Leo Sullivan commented that he liked the new format, stating it showed a lot more information. Janet Moore agreed, stating it was much easier to understand. Mr. Sullivan suggested that both the Weekly Activity Statistics and Monthly Occupancy Status Report reflect on the Agenda as separate items. Wade Tucker asked if the font size of the property name could be changed, Ms. Vakili responded that a standardized template is used to generate the report by a licerised software program and therefore staff did not have access to change the formatting. D. REPORT #1 - MONTHLY OCCUPANCY AND AVERAGE RENT STATEMENT The Commission reviewed the Monthly Occupancy and Average Rent Statement for October. Leo Sullivan referenced the report and asked if the font size could be changed or modified to legal size paper. RPM will modify the report. E. REPORT #2 — MONTHLY NET OPERATING INCOME STATEMENTS The Monthly Net Operating Income Statements for October. Leo Sullivan requested an update of the stipulated requirement and asked if we were meeting our goals. Janet Moore stated that the Agency has met the obligations of the stipulation required by 2006. The Agency has also met the additional requirement from the Regional Housing Needs Assessment (RHNA) of 1998 which was 229 affordable units. Staff is currently working on the new Regional Housing Needs Assessment (RHNA) numbers of 2711 units which have to be produced by 2014. She noted that approximately 90 units have been met towards the new requirement. Mrs. Moore provided an update on a recent senate bill in relation to an assembly bill that has given rise to a number of different issues and requirements with regard to the reduction of greenhouse gas emission. The bill requires aligning the RHNA planning process with the regional transportation planning process. Southern California Association of Governments (SCAG) has been tasked to revisit the RHNA needs as well as the regional transportation 3 Housing Commission Minutes December 10, 2008 plan. In order to achieve a reduction in vehicle miles driven in the State of California, SCAG will address ways to balance housing closer to jobs, retail and industry. SCAG is trying to get a postponement to address these issues which could possibly push the RHNA out a year orso. Upon question, Mrs. Moore stated that the stipulation prescribes that after the requirement has been completed, it is required to meet the RHNA needs. Councilmember Liaison Richard Kelly commented that a destination study conducted by CVAG shows that only 2% of the vehicle-miles traveled outside the valley for work, which means that a high percentage of workers stay in the valley and average 15 minutes or less of driving time. He noted that the City of Palm Desert continues to lead with regard to jobs housing balance. Mrs. Moore stated that we will continue to work towards the goals and how there might be legislation that may possibly adjust the RHNA numbers. Wade Tucker inquired on the concerns with regard to housing for casino employees. Mrs. Moore responded that due to a decline in home prices it alleviated most of their concerns. Mr. Kelly asked if there are rules for leasing or selling affordable housing to people who work or live in the City of Palm Desert. Mrs. Moore stated that Falcon Crest, our most recent development, established a criteria during open registration that provided certain points to families that worked or lived in Palm Desert; this allowed them to move to the top of the list. Applicants did not have to live or work in the City in order to qualify fof the program. Mr. Kelly stated that he believed Palm Desert was the only City in California that is really doing something about jobs housing balance. Mr. Sullivan commented on the RHNA requirement of producing 2711 units within a six-year period and asked if the City had the capacity to accomplish those numbers given that the economy is not going to recover soon. Justin McCarthy stated that it is unlikely to accomplish those numbers. Approximately 25% may be accommodated through acquisition rehabilitation of existing units, which is the preferred strategy of the City. He provided a brief explanation of the slowdown received from tax increments which impact the revenues available to create those required units. He noted that the RHNA numbers were predicated on a different economy and growth projection. He 0 Housing Commission Minutes December 10, 2008 further noted that staff is continuing its efforts and being more creative in order to accomplish the RHNA goal. Mr. Kelly noted that the City of Palm Desert sold more houses this year than last year. He commented that he hated to hear that the economy will not recover and preferred to look at it from a positive attitude. The City Council approved $170,000,000 worth of building permits which shows that Palm Desert is not exactly having a terrible year and in fact was better than two years ago. F. HOUSING AUTHORITY PROPERTIES UPDATE The update on the Housing Authority properties was reviewed by the Commission. Martin Alvarez summarized the update. He provided an update on California Villas rehabilitation of Phase II, stating that the project is approximately 85% complete. The carports of the south parking lot are underway. The pool decking and administration area have been completely demolished and those improvements are progressing smoothly. The new addition of an 800 square foot service building encountered a small delay with respect to Southern California Edison (SCE) requesting additional requirements. Some of the meters originally planned to be installed on the side of the building will be relocated to comply with SCE. A request to extend the time to complete this part of the project will be presented to the Housing Commission at a later date. VI. NEW BUSINESS A. ELECTION OF OFFICERS With members of the Commission in concurrence, Verna Smith was nominated as Chair and Natalie Russo as Vice Chair. Natalie Russo accepted the office to which she was elected; Verna Smith was not present to accept. Rec: By Minute Motion: Action: Motion was made by Commissioner Turner and seconded by Commissioner Tucker to elect Verna Smith as Chairwoman and Natalie Russo as Vice Chair commencing January 2009 for a term of one year; pending Verna Smith's acceptance to office. 5 Housing Commission Minutes B. RPM Agreement for Property Management Services Rec: By Minute Motion: December 10, 2008 Action: Motion was made by Commissioner Turner and seconded by Commissioner Lewis to forward a recommendation to the Palm Desert Housing Authority Board to enter into a contract with RPM Company to provide property management services to the Housing Authority properties. Janet Moore summarized the staff report stating the majority of the changes to the contract were clarifications to the Administrative Policy, approved by this Commission last year. Staff is also recommending no increase in the mariagement fee for the time period of this contract. A comparison study of management fees to similar services for affordable properties in the area showed that the fees are in line. She commented on the difference in RPM's management staff and that they are local and able to provide full tenant support which appears to be unusual in affordable property management. The property managers interact face-to-face with a tenant during income qualification and recertification. Las Serenas property manager was mentioned as exemplary management services to the tenants. Mrs. Moore mentioned the Thanksgiving dinner event hosted by Las `Serenas that served 55 dinners to residents. Among the helpers were Janet Moore, Patty Leon, Teresa Vakili and Las Serenas' staff. She commented that staff was not recommending an increase because of the service provided but a recognition that we are in line with other management fees similar to affordable properties in the area. She emphasized how the consistency of RPM's management staff has really helped our tenant population. Upon question, Janet Moore stated that the contract is for a two-year period as opposed to five years as previously done, in order to comply with the existing tax laws applicable to the bond issues used to purchase the properties. Councilmember Richard Kelly asked that staff clarify the recommendation at the City Council meeting that there will not be an increase to the proposed management fee. C. Mid-Year 2008/2009 Budget Adjustment Rec: By Minute Motion: Action: Motion was made by Commissioner Turner and seconded by Commissioner Russo to forward a recommendation to the Palm Desert Housing Authority Board to the Finance Director C Housing Commission Minutes December 10, 2008 to request mid-year budget adjustments resulting in no increases or decreases for the Housing Authority properties. Veronica Tapia reviewed the summary, stating a zero net gain/loss in the total adjustments. She highlighted the adjustments necessary at Laguna Palms, Catalina Gardens, California Villas and Taos Palms. D. 2009 Consultants Master List Rec: By Minute Motion: Action: Motion was made by Commissioner Turner and seconded by Commissioner Lewis to forward a recommendation to the Housing Authority Board; 1) Approve the 2009 Master Consultants list; 2) Authorize staff to negotiate agreements and contract amendments with qualified consultants listed, and City ManagerlExecutive Director to execute same; and 3) Approve the proceedings for selection and award of contracts as set forth in the report authorized by Section 3.32.090 of the Palm Desert Municipal Code. Martin Alvarez reviewed the staff report stating that there are 45 new approved consultants. Jane Turner inquired on the maintenance service at the Housing Authority properties. Janet Moore stated that a vendor list is in place for the Housing Authority properties. The vendor list will be presented to the Housing Commission after the fiscal year-end (June 30, 2009). VII. CONTINUED BUSINESS VIII. INFORMATIONAL ITEMS A. HOUSING AUTHORITY NEWSLETTER Newsletters were provided to the Commission for December. B. AGENCY HOME IMPROVEMENT PROGRAM UPDATE An update on the Home Improvement Program (HIP) was provided to the Commission for review. 7 Housing Commission Minutes December 10, 2008 Janet Moore stated that the HIP program is increasing its capacity. There are currently 14 new applications in review. Applications from manufactured home parks have increased as well. She stated that payoffs from refinances or home sales have declined due to the economy, with resulted in utilizing the Agency's 20% set aside to fund the program. IX. NEXT MEETING DATE — JANUARY 14, 2009 A. SCHEDULE OF HOUSING COMMISSION MEETING DATES FOR 2009 A memo was provided to the Commission listing the Housing Commission meetings scheduled for 2009. Janet Moore stated that the meeting of October 14 occurs after the regularly scheduled City Council meeting and in order to accommodate actions required by the Commission on the Housing Authority agenda, staff is requesting that the Commission adjourn the September meeting to October 7th. With regard to the meeting on Veteran's Day, Mrs. Moore noted that it would be better to wait to schedule the November meeting closer to that time to coincide with the Council's meeting date since they only meet once. Councilmember Liaison Richard Kelly stated that he did not think the City Council would move the November meeting. He noted that everyone including the citizens expect to attend a Council meeting on the second Thursday of every month. He commented that he is opposed to a change of date for the November Council meeting. Janet Moore suggested changing the Housing Commission meeting to Tuesday, November 10, 2008 to accommodate actions required by the Commission on the Housing Authority agenda. A decision will be made closer to that meeting date. At this time, Leo Sullivan thanked the Commission and Staff for his involvement as Chairman of this Commission. ADJOURNMENT With members of the Housing Commission concurrence Leo Sullivan, Housing Commiss l% Ll'-U 'lr, adjourned the meeting at 4:16 p.m. Patty Leon, ecording Secretary 0 TO: FROM: DATE: SUBJECT: PALM DESERT REDEVELOPMENT AGENCY INTEROFFICE MEMORANDUM RACHELLE KLASSEN, CITY CLERK PATTY LEON, RECORDING SECRETARY DECEMBER 11, 2008 HOUSING COMMISSION MINUTES Attached is the following Housing Commission Meeting Minutes approved at the Housing Commission meeting held December 10, 2008: NOVEMBER 12, 2008 Please submit to the Housing Authority Board. Thank you. cc: Carlos L. Ortega, Executive Director I J^ 8Y HOUSG AUTH 5-U ON ' ' VERIi=1ED BY: ' Original on file with City erk's Office G CITY OF PALM DESERT HOUSING COMMISSION MINUTES NOVEMBER 12, 2008 I. CALL TO ORDER Verna Smith, Housing Commission Vice-Chair, convened the meeting at 3:30 p.m. II. ROLL CALL Present: Donna Lewis Natalie Russo Verna Smith Wade Tucker Jane Turner Also Present: Members Absent: Leo Sullivan Richard S. Kelly, Councilmember Liaison Justin McCarthy, ACM for Redevelopment Dave Yrigoyen, Director of RedevelopmenUHousing Janet Moore, Director of Housing Martin Alvarez, Redevelopment Manager Jessica Gonzales, Management Analyst — Housing James Conway, Project Manager Patty Leon, Recording Secretary Guest(s): Teresa Vakili, RPM Company Betty Marinas, One Quail Place Tenant III. ORAL COMMUNICATIONS Betty Marinas was introduced to the Commission. IV. CONSENT CALENDAR A. MINUTES of the Regular Housing Commission meeting of October 8, 2008. Housing Commission Minutes November 12. 2008 With a Motion made by Commissioner Turner and seconded by Commissioner Lewis the minutes of October 8, 2008 were unanimously approved. Verna Smith reported on the Housing Tour that took place November 7, 2008. She thanked the Housing Commission members who attended. She also commented that staff did a wonderful job; Mr. Wade Tucker agreed. Janet Moore noted that the housing tour was a visual driving tour that took approximately two hours. She mentioned that the next housing tour is tentatively scheduled for early 2010. V. REPORTS AND REMARKS A. COMMISSION REPORTS Martin Alvarez reported that a meeting took place on Saturday, November 8, 2008 with the Palm Desert Country Club Homeowners Association to discuss Country Village's site area. An update was provided of the proposed senior housing project, demolition, and the improvements planned at Casey's Restaurant. Mr. Alvarez stated that the HOA members were in favor of the projects and expressed their thoughts on the plans for the intersections of Califomia Drive, Avenue of the States, and Michigan Drive. Upon question, Mr. Alvarez stated that the Agency is also working with a separate homeowners association in Palm Desert Country Club known as Palm Desert Condominiums Association with regard to a land transfer to accommodate future access points. B. SUMMARY OF CITY COUNCIL AND REDEVELOPMENT AGENCY AGENDA ITEMS RELATED TO HOUSING, AND SUMMARY OF CITY COUNCIL, HOUSING AUTHORITY, AND REDEVELOPMENT AGENCY ACTIONS The summary was reviewed by the Commission. C. RPM MONTHLY STATUS REPORTS The Commission reviewed the Monthly Status Report for September. Jane Turner asked for a review of the recertification process. 2 Housing Commission Minutes November 12, 2008 Teresa Vakili stated that the initial certification process entails verification of income from all members of household over the age of 18 including assets and 6 months of bank statements. In addition, management will also verify rental history, one year of employment, credit and criminal background check. If approved, new tenants are placed on a six-month lease and then re-certified to a one-year lease. Tenants are notified and provided with a new recertification packet 60 days in advance. At that time, the income and household information is verified to ensure there are no changes. Criminal background checks are not repeated during tenancy. Ms. Turner questioned the re-certifications at the newer properties. Ms. Vakili responded that all initial move-ins are placed on a 6-month lease and then re-certified to a one-year lease. The reporting on the Monthly Status Report shows the number of recertification packets sent out based on the 60- day advance notice. D. REPORT #1 - MONTHLY OCCUPANCY AND AVERAGE RENT STATEMENT The Commission reviewed the Monthly Occupancy and Average Rent Statement for September. E. REPORT #2 — MONTHLY NET OPERATING INCOME STATEMENTS The Monthly Net Operating Income Statements for September. F. HOUSING AUTHORITY PROPERTIES UPDATE The update on the Housing Authority properties was reviewed by the Commission. James Conway summarized the update. Jane Turner asked if the silk plants in the planter boxes at Laguna Palms were a new addition to the property. Mr. Conway stated that those existing planters had live plants that were stolen and therefore replaced and secured with the silk plants. There is a one year commitment from the vendor to maintain the silk plants in proper conditions. 3 Housing Commission Minutes VI. NEW BUSINESS A. California Villas — Rehabilitation Project Rec: By Minute Motion: November 12, 2008 Action: Motion was made by Commissioner Turner and seconded by Commissioner Lewis to forward a recommendation to the Palm Desert Housing Authority Board to approve Change Order No. 2 to Contract No. HA 23650-C (Doug Wall Construction, Inc.) in the amount of $48,857.52 for additional environmental abatement, pool fencing upgrade, and minor site modifications for the Housing Authority property known as California Villas. Martin Alvarez summarized the staff report. Jane Turner commended Martin Alvarez for the informative format of the staff report. VII. CONTINUED BUSINESS VIII. INFORMATIONAL ITEMS A. HOUSING AUTHORITY NEWSLETTER Newsletters were provided to the Commission for November. B. AGENCY HOME IMPROVEMENT PROGRAM UPDATE An update on the Home Improvement Program (HIP) was provided to the Commission for review. James Conway summarized the update, reporting 16 homes in various stages of construction and 3 homes recently completed. Janet Moore commented that although there is a significant amount of interest in the program, there are several homeowners that are apprehensive when it comes to signing loan documents that are subject to liens on their properties due to the economic crisis. Mrs. Moore provided a brief explanation on the homeowner with the water heater issue and how the Housing Programs Technician was able to immediately assess the situation to re-circulate water back in the mobile home. She commented that homeowners requiring emergency grants are usually C! Housing Commission Minutes November 12, 2008 more responsive and better prepared with all their documentation as opposed to the other applications that tend to take three to five months to provide all the documentation required. Verna Smith referenced the HIP report and asked if the homeowners are considered low income. Mrs. Moore stated that applicants must be below 100% of the county median. She noted that over two-thirds of the applicants have incomes under $20,000. Wade Tucker asked how people know about the HIP program. Mrs. Moore replied that the HIP program is published in the Brightside at least once a year in different times to address AC and/or heating issues. The program was established in 1997 and has serviced approximately 200 homeowners. Mr. Conway also stated that during rehabilitation to a home, there is a sign posted in the front lawn publicizing the HIP program. Mr. Tucker asked if additional help is needed with the program. Mrs. Moore explained that the program currently assists 20 to 24 applicants a year and has been successful in terms of funding purposes and administration and did not need additional assistance. Verna Smith commented that she provided Palm Desert Greens Mobile Home Park with a HIP brochure, once the program was able to assist mobile home parks. Jane Turner asked on the percentage of properties that are code enforcement. Mr. Conway replied that approximately 25% of applicants are involved in a code violation. The code enforcement officers have HIP application packets with them in the event there is a homeowner who might qualify for the program. Mrs. Smith stated that during the Housing Tour, staff mentioned other properties that have affordable units and ask about this course of action. Janet Moore stated that there are several properties with affordability restrictions. Developers interested in building in Palm Desert will request a density bonus which allows them to increase the maximum allowable development on a property in exchange for affordable housing. There is generally a requirement for 20% of their development to be affordable. This requirement is established during the development of the project. Mrs. Moore 5 Housing Commission Minutes November 12, 2008 provided an example of the affordability restriction of the Regent also known as San Tropez and Sevilla. In order to comply with the affordable restrictions developers are required to submit a compliance report at least once a year. Natalie Russo inquired on the plaque/tile at the Rose Garden previously discussed for former commissioner Linda Ward. The Commission agreed to meet at the Rose Garden before next month's meeting on December 10 h 2008 to view the tile. IX. NEXT MEETING DATE — DECEMBER 10, 2008 ADJOURNMENT With members of the Housing Commission concurrence Verna Smith, Housing Commission Vice-Chair, adjoumed the meeting at 3:56 p.m. V U Patty Leon,' Recording Secretary PALM DESERT REDEVELOPMENT AGENCY INTEROFFICE MEMORANDUM TO: RACHELLE KLASSEN, CITY CLERK FROM: PATTY LEON, RECORDING SECRETARY DATE SUBJECT: NOVEMBER 13, 2008 HOUSING COMMISSION MINUTES Attached is the following Housing Commission Meeting Minutes approved at the Housing Commission meeting held November 12, 2008: OCTOBER 8, 2008 Please submit to the Housing Authority Board Thank you. Cu 0 p ' , y-o ) Tv e BY HOUSG AUTH oN I-a-o8 VERIFIED BY: Original on file with City Clerk's Office cc: Carlos L. Ortega, Executive Director CITY OF PALM DESERT HOUSING COMMISSION MINUTES I. CALL TO ORDER OCTOBER 8, 2008 Leo Sullivan, Housing Commission Chair, convened the meeting at 3:30 p.m. II. ROLL CALL Present: Members Absent: Donna Lewis Natalie Russo Verna Smith Leo Sullivan Wade Tucker Jane Turner Also Present: Richard S. Kelly, Councilmember Liaison Justin McCarthy, ACM for Redevelopment Dave Yrigoyen, Director of RedevelopmenUHousing Janet Moore, Director of Housing Martin Alvarez, Redevelopment Manager Jessica Gonzales, Management Analyst — Housing James Conway, Project Manager Patty Leon, Recording Secretary Guest(s): Teresa Vakili, RPM Company Norman Haines, Las Serenas Tenant Constance Ackroyd, California Villas Tenant Jessica Fausto, One Quail Place Tenant Juan Pablo Fausto, One Quail Place Tenant All tenants in attendance indicated they were responding to a flyer in the property newsletter about an opening for a resident commissioner.) III. ORAL COMMUNICATIONS Housing Commission and City staff members introduced themselves to guests that were in attendance from the Housing Authority properties. Housing Commission Minutes IV. CONSENT CALENDAR October 8, 2008 A. MINUTES of the Regular Housing Commission meeting of September 10, 2008. With a Motion made by Commissioner Lewis and seconded by Commissioner Sullivan the minutes of September 10, 2008 were approved; both Commissioners Jane Turner and Verna Smith abstained due to their absence at the September meeting. V. REPORTS AND REMARKS A. COMMISSION REPORTS Janet Moore reported on the Housing Adhoc Sub-committee meeting that took place October 2, 2008. A schematic design of Country Village was displayed. She asked the committee members and commissioners that attended the meeting for any comments on the meeting. Jane Turner mentioned that there were a lot of changes made to the original design concept and felt that this new plan suited the property and area nicely. Verna Smith agreed, stating that this new design allows for more open space areas. The new plan will have one and two story buildings with elevators as a senior apartment complex. Councilmember Kelly stated that discussion also took place to implement fuel cells for energy efficiency. The sub-committee was also looking into options for transportation to the area shopping centers. Mrs. Turner mentioned that the design concept will be forwarded to the Architectural Review Committee (ARC). Mrs. Moore stated that Mr. Rueul Young with Interactive Design, who is also the architect for this project, is requesting a preliminary review from the ARC with regard to the aesthetics of the new design. Mr. Young is hoping for a preliminary guide in the event there is an element of the project that needs to be changed. Mrs. Smith commented that she was impressed with the research conducted by Mr. Young with regard to the flow of traffic for that area. 2 Housing Commission Minutes October 8, 2008 Mr. Kelly stated that he likes this location for senior citizens since the property is centrally located to nearby shopping centers. He anticipates this property to be a real showpiece just like Laguna Palms. Wade Tucker asked if there was a completion date for this property. A completion date has not been determined. B. RPM MONTHLY STATUS REPORTS The Commission reviewed the Monthly Status Report for August. Leo Sullivan inquired on a time frame to fully occupy California Villas. Teresa Vakili stated that of the 25 units currently being rehabilitated, as part of Phase B project, there are currently 12 units remaining in the leasing process. Laguna Palms has 7 units in the application and leasing process as well. C. REPORT #1 - MONTHLY OCCUPANCY AND AVERAGE RENT STATEMENT The Commission reviewed the Monthly Occupancy and Average Rent Statement for August. Leo Sullivan asked on the date recertification packets are sent to tenants. Janet Moore stated that recertifications were adjusted throughout the year as opposed to meeting with each tenant at one time. Palm Village and Laguna Palms will be an exception since most move-in dates were done at the same time. D. REPORT #2 — MONTHLY NET OPERATING INCOME STATEMENTS The Monthly Net Operating Income Statements for August. E. HOUSING AUTHORITY PROPERTIES UPDATE The update on the Housing Authority properties was reviewed by the Commission. James Conway summarized the update. 3 Housing Commission Minutes October 8, 2008 He reported that California Villas is 60% complete and anticipates a completion date of December 2008, stating that the project is on track. He stated that he is in the process of working with Southern California Edison Company (SCE) to secure utility costs for both Laguna Palms and California Villas. This will show what the impact has been on the energy renovation efforts of both projects. He noted that he requested 2 to 3 years of utility statements from SCE to calculate exactly what our savings has been. Leo Sullivan asked if the same is being requested of Coachella Valley Water District (CVWD). Mr. Conway replied that those savings were determined during submittals of the landscape approvals by the Landscape Department. Mr. Conway reported that the properties are continuing the recycling efforts. As previously mentioned, a grant was awarded to provide dual recycling receptacles to 650 units. The installation process has begun. Additionally, staff is working with Burrtec to track contamination of dumpsters by providing notifications in the newsletters to residents with regard to disposing items in the appropriate dumpsters. Mr. Sullivan addressed Councilmember Kelly and asked where we stand with regard to recycling in the City of Palm Desert. Mr. Kelly responded that the City is at 64% of its recycling efforts. He commented that there are a lot of people who are not recycling their items. He noted that staff is constantly working to implement and educate people with regard to the recycling program. Mr. Sullivan referenced the update and commented on the 457 total number of service requests for September and asked on the number of maintenance staff members at One Quail Place. Teresa Vakili stated that the maintenance staff consists of nine to include housekeepers, groundskeepers, and a maintenance supervisor. Mr. Sullivan asked if the smaller properties share the maintenance staff. Ms. Vakili replied yes, a percentage of the maintenance staff is allocated to each property. 0 Housing Commission Minutes VI. NEW BUSINESS A. California Villas — Rehabilitation Project Rec: By Minute Motion: October 8, 2008 Action: Motion was made by Commissioner Turner and seconded by Commissioner Smith to forward a recommendation to the Palm Desert Housing Authority Board to approve Amendment No. 1 with Harris and Associates (Contracts No. HA-23650B) in the amount not-to-exceed $41,137.00 for construction management services at Phase B(Site Improvements) of the California Villas Rehabilitation Project Martin Alvarez summarized the staff report, stating the request is to amend Harris and Associates contract for construction management services. This amendment will include the modified scope of work, as part of the change order approved by the Housing Authority Board, which will include the close out of the project to ensure all punch list items are completed and all contract specifications have been met. VII. CONTINUED BUSINESS VIII. INFORMATIONAL ITEMS A. HOUSING AUTHORITY NEWSLETTER Newsletters were provided to the Commission for October. A Home Ownership flyer (insert in the Newsletter) was provided to the Housing Commission for review. Janet Moore stated that an outreach to promote homeownership from within our properties is distributed in the newsletters from time to time. She noted that this flyer is only inserted in the multi-family newsletters and not so much the seniors since they have indicated that they are not interested in homeownership. B. AGENCY HOME IMPROVEMENT PROGRAM UPDATE An update on the Home Improvement Program (HIP) was provided to the Commission for review. 5 Housing Commission Minutes October 8, 2008 James Conway summarized the update, reporting 17 homes in various stages of construction. He reported that 2 homes recently received emergency grants; one property had a water heater issue. Verna Smith asked Mr. Conway to provide a brief summary of the program to update the new members and guests. Mr. Conway stated that the Home Improvement Program provides financial assistance to income eligible families within the City of Palm Desert for the purpose of improving their homes. The program is designed to address health and safety items and aesthetic improvements. There are several assistance amounts for grants and loans with low interest rates as well as emergency grants to handle such things as an AC unit going out in the middle of the summer. The program assists an average of 20 to 24 homes a year. Janet Moore stated that the HIP process takes a while from its application review to completion. She provided an explanation on the homeowner with the water heater issue and how c staff was able to immediately, assess the emergency nature and coordinate with the consultant to address the situation. She noted that the repairs were completed within three days. Mr. Kelly commented on a property with a very large dead tree on the north side of San Gorgonio; half way between Monterey and San Pablo. He asked if this type of issue can be handled through the program. Mr. Conway stated that 30% of our applicants have landscaping and/or code enforcement issues. He stated that he would locate the tree and have someone contact the homeowner. Jane Turner referenced the report and questioned the amount disbursed and committed on a property located on Indiana . James Conway stated that the amount shown in the disbursed column only shows the amount used for this fiscal year; however the total amount committed was actually used. Leo Sullivan addressed Justin McCarthy and asked on the new energy program and how it would fit with the Home Improvement Program. Justin McCarthy reported that the City of Palm Desert initiated a new bill AB 811 in Sacramento that would permit securing the cost and financing for certain energy improvements. This program will allow cities to make loans to homeowners and businesses by securing a tax lien on their property. The program has been allocated 2.5 million dollars and is currently underway. He noted that other financial mechanisms are currently being sought. He added Housing Commission Minutes October 8, 2008 that this new energy program is an addition to the Home Improvement Program. Janet Moore stated that the Home Improvement Program was substantially revised to include a component for energy upgrades from varying programs within the City as well as a Drought Tolerant Landscape Retrofit. Mr. McCarthy mentioned that the terms under the Home Improvement Program are more favorable then the terms under the new energy program for families of low and moderate incomes. Councilmember Kelly inquired as to the qualifications of the Home Improvement Program. Mrs. Moore stated that the Home Improvement Program has different types of loans depending on the income levels. The HIP program allows up to the 100% of the County Median. Donna Lewis asked about the funding source for the Home Improvement Program. Mrs. Moore stated that the HIP program was originally funded by Community Development Block Grant (CDBG). She noted that many homeowners refinanced their homes and paid back their HIP loans, which has allows those paybacks to be lent out again. Once those funds are exhausted, the program will use Housing's 20% set aside to continue this program. IX. NEXT MEETING DATE — NOVEMBER 12, 2008 ADJOURNMENT With members of the Housing Commission concurrence Leo Sullivan, Housing Commission Chair, adjourned the meeting at 4:03 p.m. Patty Leon, Rebording Secretary 7 A ' PALM DESERT REDEVELOPMENT AGENCY INTEROFFICE MEMORANDUM TO: RACHELLE KLASSEN, CITY CLERK FROM: PATTY LEON, RECORDING SECRETAR` DATE: SUBJECT: OCTOBER 9, 2008 HOUSING COMMISSION MINUTES Attached is the following Housing Commission Meeting Minutes approved at the Housing Commission meeting held October 8, 2008: September 10, 2008 Please submit to the Housing Authority Board. Thank you. cc: Carlos L. Ortega, Executive Director n' ' i BY HOUSG AUTH (5-D oN -a3-oR VERIFtED BY: Original on file with City Clerk's Office 0 CITY OF PALM DESERT HOUSING COMMISSION MINUTES SEPTEMBER 10, 2008 CALL TO ORDER Leo Sullivan, Housing Commission Chair, convened the meeting at 3:37 p.m. II. ROLL CALL Present: Donna Lewis Natalie Russo Leo Sullivan Members Absent: Jane Turner Verna Smith Also Present: Richard S. Kelly, Councilmember Liaison Dave Yrigoyen, Director of RedevelopmenUHousing Janet Moore, Director of Housing Jessica Gonzales, Management Analyst — Housing James Conway, Project Manager Patty Leon, Recording Secretary Guest(s): Teresa Vakili, RPM Company Wade Tucker, Potential Commissioner Beverly Fitzgerald III. ORAL COMMUNICATIONS Beverly Fitzgerald introduced herself to the Housing Commission; she was present as a guest. IV. CONSENT CALENDAR A. MINUTES of the Regular Housing Commission meeting of August 13, 2008. With a Motion made by Commissioner Russo and seconded by Commissioner Lewis the minutes of August 13, 2008 were unanimously approved. Housing Commission Minutes V. REPORTS AND REMARKS A. COMMISSION REPORTS September 10, 2008 Janet Moore reported that a Housing Adhoc Subcommittee meeting has been tentatively scheduled for the beginning of October. B. SUMMARY OF CITY COUNCIL AND REDEVELOPMENT AGENCY AGENDA ITEMS RELATED TO HOUSING, AND SUMMARY OF CITY COUNCIL, HOUSING AUTHORITY, AND REDEVELOPMENT AGENCY ACTIONS The summary was reviewed by the Commission. C. RPM MONTHLY STATUS REPORTS The Commission reviewed the Monthly Status Report for July. Teresa Vakili stated that the Monthly Status Report shows the occupancy and prelease status of all the Palm Desert Housing Authority properties. She reported that Country Village currently has one resident who is subject to relocation and expected to move-out before September 18, 2008. Laguna Palms currently has 39 occupied and 15 pre-leased tenants. Leo Sullivan questioned the length of time it has taken to occupy Laguna Palms. Ms. Vakili responded that certifications for the affordable program take a considerable amount of time. She noted there were a large number of applications received and each application was reviewed in the order in which it was received. In addition, applicants were allowed a certain amount of time to provide information required to qualify. Mr. Sullivan asked if this process should have been done before the buildings were completed. Ms. Vakili stated that applications were reviewed and qualified before the project was completed; however, most applicants were not comfortable providing monies to an assigned unit prior to viewing the unit. Janet Moore also stated that once the units were made available wait-listed applicants either did not qualify at that time or decided not to sign a lease. 7 Housing Commission Minutes September 10, 2008 Natalie Russo referenced Laguna Palms total vacant units of 39 and asked if there were 39 pending applications. Ms. Vakili replied that there are currently 15 pending leases at Laguna Palms which means there is a deposit on a unit and/or are waiting for a move-in date. She noted that in most cases applicants who are in leases in their current place of residence have to give a 30 day notice which delays the move-in date. Mrs. Moore stated that the number of wait list contactees for June and July are significant compared to March. She noted that only 30% of the people that were contacted from the wait list, qualified and are renting an apartment. Ms. Vakili summarized the reports and stated that La Rocca Villas has one unit available. Taos Palms is in the process of finalizing the architectural engineering plans to go out to bid. Sagecrest has three occupants that qualified for the program. She indicated that they have been very busy with certifications. Mr. Sullivan questioned the re-certifications at the newer properties. Ms. Vakili responded that all initial move-ins are placed on a 6-month lease, and then re-certified to a one-year lease; noting that this process is done to all new tenants at all the Housing Authority properties. Ms. Russo asked if there are more applicants on the wait list given the economy crisis. Ms. Vakili stated that the number of applicants on the wait list has actually dropped. Mrs. Moore stated that the numbers on the wait lists have dropped not only at the properties but as well as the For-Sale Program. Mr. Sullivan commented that it is getting difficult for people to find real estate loans given that some lenders are holding back. He stated he was referring to conventional loans and not necessarily on the affordable program provided by the Housing Department. Mrs. Moore stated that we are in a similar situation. She noted that as part of the Affordable For-Sale Program there is an "Approved Lender LisY' provided to applicants on the wait list. She explained that lenders are having a di cult time agreeing to be placed on the approved list. Most lenders are not able to get their undervvriters to review the Agency's loan documents. The policy accepts only CaIFHA approved lenders. She noted that a lender agreed to review the Agency's loan documents but is skeptical in accepting our program. 3 Housing Commission Minutes September 10, 2008 D. REPORT #1 - MONTHLY OCCUPANCY AND AVERAGE RENT STATEMENT The Commission reviewed the Monthly Occupancy and Average Rent Statement for July. E. REPORT #2 — MONTHLY NET OPERATING INCOME STATEMENTS The Monthly Net Operating Income Statements for June and July. Teresa Vakili summarized the reports by stating that the Monthly Net Operating Report provides a percentage of occupancy for each property according to the income levels in the very low, low and moderate categories. Leo Sullivan asked if the properties were on track based on the stipulated requirements. Ms. Vakili replied that although iYs a moving target, yes we are on tract. Mr. Sullivan asked why residents are moving out of the properties. Ms. Vakili stated that tenants are asked to complete a survey when vacating a unit and have indicated several reasons such as relocating, moving back with family, buying/renting a home, job transfers, etc. Mr. Sullivan asked if those survey results can be brought forward to the Commission for review. Ms. Vakili said she would see how the information is filed now and see how it could be presented in the future. Natalie Russo commented that she felt there should be more applicants on the wait lists since a lot of people are losing theirjobs due to the economy. Janet Moore stated that the wait lists at the properties have been exhausted to get occupancy at the newer properties such as La Rocca Villas, Palm Village, and Laguna Palms. She noted there were approximately five hundred applications reviewed and one out of four applicants qualified. A notice is published twice yearly in the City's Brightside with regard to rental opportunities; a notice is expected to be published in November. Additionally, interested parties are directed to the City's website for information on our programs. Housing Commission Minutes September 10, 2008 Upon question, Ms. Vakili reported minimal turnovers at the senior properties, stating that most senior tenants either pass away or are transferred to assisted living facilities and/or family members due to health reasons. In quite a few cases, applicants on the senior wait lists are no longer available. Mr. Sullivan commented that for this reason, he felt there was no interest on the Housing Commission from tenants, stating that we always have this problem. Mrs. Moore agreed it has been difficult getting two tenants from the properties to commit as a member of the Housing Commission. Councilmember Richard Kelly stated that the Council, in the past, has reviewed one applicant at a time, depending on the circumstances of the committee/commission. He suggested a recommendation by both Housing Commission Liaisons (Janet Moore and Richard Kelly) be forwarded to the City Clerk to review Mr. Wade Tucker's application. Mrs. Moore stated she would forward the recommendation to the City Clerk. Mr. Sullivan commented on the interest from the larger properties such as One Quail Place. Mrs. Moore stated that the demographics make a difference. The Bylaws state that the Housing Commission will consist of seven members of which two members are required to reside at one of the Housing Authority properties and one needs to be a senior. Ideally we would like a member to represent a multi- family property but it is di cult since most families that live at the properties are busy and/or find it difficult to make a commitment to attend twelve meetings. She stated that notices will be sent out in the Housing Authority property newsletters. She noted that we would prefer not to have two members from the same complex but if there was an application then it would be considered. Mr. Sullivan stated that it is important to hear input from the rest of the Commissioners. He noted how much Housing Commission member Linda Ward helped Las Serenas. He stated that the comments made by Ms. Ward were useful in upgrading certain items at all of the properties. James Conway stated that in the past staff and property managers would hold resident functions to allow participation and promote community involvement. Unfortunately, there was not enough attendance from the tenants so those functions are no longer taking place. Mr. Sullivan commented he would be more than happy to attend resident functions or events as a Commission member since he felt this information is vital to the tenants. He understands that the Commission is not making the 5 Housing Commission Minutes September 10, 2008 decisions but rather direct them to the City Council in hopes to find people like Mr. Tucker who are willing to participate. Mr. Conway stated that staff has approached several tenants who seem ideal for this Commission but they have refused due to other commitments. Mrs. Moore assured the Commission that there will be outreach with regard to the vacant seats. She provided a brief explanation on the Riverside County Authority Board and how they have trouble filling the resident seat as well. Donna Lewis stated that she is member of a group in town made up of women in business, and at each meeting she solicits for volunteers. She commented that the time frame might be a problem. Mr. Sullivan asked if the time set for the Housing Commission was permanent. He also noted that a change in the time of the meeting could cause other issues such as staff overtime, etc. Mrs. Moore stated that a time has been established for the Housing Commission meetings but would address this matter with the City Clerk. Mrs. Moore also noted that the City Clerk publicizes openings/vacancies for committees/commission on a routine basis. She stated that Ms. Lewis had initially applied for a different committee and was asked if she would be interested in this Commission. Currently, there are several openings within the City's committees and commissions. F. HOUSING AUTHORITY PROPERTIES UPDATE The update on the Housing Authority properties was reviewed by the Commission. James Conway stated he was available to answer any questions with regard to the update. Janet Moore provided an update on Country Village. She reiterated that there is only one unit occupied and is expected to be vacant by September lgtn The deconstruction project is anticipated to go out to bid approximately a month to six weeks after the property is vacant. She stated that the property will be vacant for some time and may attract transients which will be closely monitored. She indicated that the deconstruction project will not be a fast track. Leo Sullivan asked if the property will be boarded up. Housing Commission Minutes September 10, 2008 Mrs. Moore stated that boards were put up in some areas where windows were broken. Teresa Vakili stated that Country Village is regularly monitored to ensure windows are locked and felt that boards were not necessary since the property is visible from the street. Additionally, security patrols this area on a routine basis. Mr. Conway provided an update on Taos Palms, stating that a draft of the agreement has been forwarded to the architect for review. The architect has requested a six-week period to create the documents in order to go out to bid. The re-plumbing and electrical plans have been completed and will be forwarded to the architect to include in his specifications. Mr. Sullivan asked if the tenants currently occupying units at Taos Palms are upset with the construction going on. Mr. Conway replied no since most tenants are looking forward to transferring into a rehabilitated unit. In efforts to continue the recycling program at the properties, Mr. Conway stated that tenants are being educated on how to separate recyclables in proper containers by way of flyers and notices on doors. In addition, Burrtec Waste and Recycling Services have been helpful in monitoring and providing feedback on a monthly basis. Recently, the Housing Authority was awarded a grant to purchase pull-out dual receptacle containers that will separate trash and recyclable items. These containers will be installed in all the units with the exception of Laguna Palms since they were previously installed as part of rehabilitation project. At this time, Janet Moore reported that the Agency was successful in the acquisition of an apartment complex in Palm Desert located on Ocotillo Drive. This property will be an Agency owned property until a decision is made with regard to its disposition. The property will remain a market property and occupied by market tenants. It will not be included in the reports provided to the Commission since it is not owned by the Housing Authority and is not subject to the same requirements as Housing. Mr. Sullivan inquired on the Regional Housing Needs Assessment (RHNA) numbers. Mrs. Moore stated that the Agency met the requirements on the Stipulation as defined with regard to the specific units required. However, there is a clause in the lawsuit that states that after we meet our requirement we would work 7 Housing Commission Minutes September 10, 2008 toward meeting the RHNA numbers. Previously the RHNA required 229 affordable units which the Agency met. The current requirement number is 2711 units which the Agency has already begun to work on meeting those numbers. Mr. Sullivan asked on the time table allowed to meet those numbers. Mrs. Moore responded that 2711 affordable units are to be made available by the year 2014. Councilmember Richard Kelly stated that those numbers were based before the economy crisis. He hopes that somebody from RHNA steps up to the plate and understands that the forecast needs to be changed. Mrs. Moore stated that at this moment that number does exist and we will continue to work towards the provision of units as part of that requirement. Mrs. Moore stated that Laguna Palms is complete and landscape responsibilities have been transferred to the contracted landscape company. The Agency is in the process of submitting to the California Redevelopment Association (CRA) for awards in various categories: Community Revitalization, Residential Development and Rehabilitation, and Sustainable Development in hopes that CRA will recognize the hard work and outstanding job on that project. The Commission was provided with a copy of a letter received from a tenant at California Villas. Mrs. Moore stated that we don't often receive letters thanking or acknowledging us with regard to the properties. She noted that throughout the process of renovating California Villas, which took three-years from the design stage to this point, there were relatively few complaints. This project was said to be difficult since the property was occupied. Mrs. Moore stated that a resident from California Villas took the time to write a letter and is being shared with the Commission. VI. NEW BUSINESS VII. CONTINUED BUSINESS VIII. INFORMATIONAL ITEMS A. HOUSING AUTHORITY NEWSLETTER Newsletters were provided to the Commission for September. E3 Housing Commission Minutes September 10, 2008 B. AGENCY HOME IMPROVEMENT PROGRAM UPDATE An update on the Home Improvement Program (HIP) was provided to the Commission for review. James Conway summarized the update, reporting 11 homes in various stages of construction. He stated that last week 20 HIP application packets were handed out. Janet Moore stated that we utilize the Brightside for outreach of our programs. The HIP program was recently published in the Brightside. IX. NEXT MEETING DATE — October 8, 2008 ADJOURNMENT With members of the Housing Commission concurrence Leo Sullivan, Housing Commission Chair, adjourned the meeting at 4:20 p.m. I X1 J l./ Patty Leon, R ording Secretary 1 1' PALM DESERT REDEVELOPMENT AGENCY INTEROFFICE MEMORANDUM TO: RACHELLE KLASSEN, CITY CLERK FROM: PATTY LEON, RECORDING SECRETARI DATE: SUBJECT: SEPTEMBER11,2008 HOUSING COMMISSION MINUTES Attached is the following Housing Commission Meeting Minutes approved at the Housing Commission meeting held September 10, 2008: August 13, 2008 Please submit to the Housing Authority Board. Thanl ypu, cc: Carlos L. Ortega, Executive Director O v ReCell/PC BY HOUSG AUTH J' • \ V % - (— ( F rS'cSN7wc1 / VERIFIED BY: \ / " Original on file with City C erk s Office CITY OF PALM D SERT HOUSING COMMISSION MINUTES AUGUST 13, 2008 I. CALL TO ORDER Leo Sullivan, Housing Commission Chair, convened the meeting at 3:30 p.m. 11. ROLL CALL Present: Donna Lewis Natalie Russo Leo Sullivan Verna Smith Members Absent: Jane Turner Also Present: Justin McCarthy, ACM for Redevelopment Dave Yrigoyen, Director of RedevelopmenUHousing Martin Alvarez, Redevelopment Manager Jessica Gonzales, Management Analyst - Housing Patty Leon, Recording Secretary Guest(s): Teresa Vakili, RPM Company III. ORAL COMMUNICATIONS IV. CONSENT CALENDAR A. MINUTES of the Regular Housing Commission meeting of July 9, 2008. With a Motion made by Commissioner Smith and seconded by Commissioner Lewis the minutes of July 9, 2008 were unanimously approved. V. REPORTS AND REMARKS A. COMMISSION REPORTS ' Housing Commission Minutes August 13, 2008 B. SUMMARY OF CITY COUNCIL AND REDEVELOPMENT AGENCY AGENDA ITEMS RELATED TO HOUSING, AND SUMMARY OF CITY COUNCIL, HOUSING AUTHORITY, AND REDEVELOPMENT AGENCY ACTIONS The summary was reviewed by the Commission. C. RPM MONTHLY STATUS REPORTS The Commission reviewed the Monthly Status Report for June. Teresa Vakili stated that all the properties are moving forward with regard to move-ins and recertifications. Laguna Palms is expected to have 28 occupied units this month and anticipate 100% occupancy by mid October. La Rocca Villas has two available units at this time. Verna Smith asked if there has been any problem with regard to the economy and people losing theirjobs. Ms. Vakili stated that it has not been a major problem at the properties. She noted that there were a few move-out notices at One Quail Place due to relocating and employment changes. She stated that the senior properties have not been affected by this issue. Leo Sullivan inquired on Taos Apartments interior renovations. Ms. Vakili stated that the project is in the process of finalizing the architectural specifications. With regard to the percentage of occupancy at Taos Palms, Ms. Vakili noted that the property will remain 50% occupied until all interior renovations are complete. Martin Alvarez stated that the intent is to transfer the existing tenants to the renovated units and renovate those units currently occupied. D. REPORT #1 - MONTHLY OCCUPANCY AND AVERAGE RENT STATEMENT The Commission reviewed the Monthly Occupancy and Average Rent Statement for June. E. REPORT #2 — MONTHLY NET OPERATING INCOME STATEMENTS 2 Housing Commission Minutes August 13, 2008 The Monthly Net Operating Income Statements for June was not available; awaiting year-end P/L finals. F. HOUSING AUTHORITY PROPERTIES UPDATE The update on the Housing Authority properties was reviewed by the Commission. Martin Alvarez summarized the report. The newly modified report that included additional information with regard to the number of service requests received positive feedback from the Commission; all agreed it was informative. Verna Smith asked for a description of a drywell. Mr. Alvarez stated that it is a public works infrastructure system that takes water away from the streets into a gravel bed that allows the water to percolate down to the aquifer. He noted that this system is not tied to a storm drain system. Mr. Alvarez distributed pictures of the ongoing construction project at California Villas. VI. NEW BUSINESS A. California Villas — Change Order No. 1 Rec: By Minute Motion: Action: Motion was made by Commissioner Russo and seconded by Commissioner Smith to forward a recommendation to the Palm Desert Housing Authority Board to approve Change Order No. 1 to Contract No. HA-23650-C (Doug Wall Construction, Inc.) in the cumulative amount of $34,584.93 for additional environmental abatement, site drainage improvements, and minor site modifications for the Housing Authority property known as California Villas Martin Alvarez reviewed the staff report, stating. that the project is approximately 30% complete. He highlighted the additional environmental abatements required for the renovated units as well as the fire safety improvements and the latest National Pollutant Discharge Elimination System NPDES) requirement. He also referenced the credits from the contractor. 3 Housing Commission Minutes August13,2008 Natalie Russo asked where the new maintenance building will be located at the property. Mr. Alvarez referenced a site map displayed of California Villas and stated that the new maintenance facility will be located between buildings E and D. Leo Sullivan addressed Justin McCarthy and expressed his concern with the fast tracking system amongst departments. He noted that he has brought forward this concern in the past. He feels that this department is willing to work together with several departments, referencing the drywell. He stated that he feels that at times we have a gun put to our heads and we have to do what is required or we will not get approvals. Mr. Sullivan further commented that he wondered if the other departments know that we want the fast tracking. Justin McCarthy stated that for all intense of purposes, this department receives good service from the Planning, Public Works and Building and Safety Departments. He stated that there is a tremendous amount of collaboration and cooperation that goes on. He noted the unforeseen rule changes that happen when specifications are submitted for a project. He explained how we are more diligent with ourselves in trying to comply with up to date rules then perhaps the private sector is. Mr. McCarthy commented that since his employment with the City, there has been an improvement with regard to communication between departments. A policy was instituted to have monthly project management meetings between all divisions as well as internal exchange of staff members such as Martin Alvarez who has worked in the Planning and Public Works Departments. He stated that Martin is responsible for overseeing a lot of the projects in the Redevelopment and Housing Departments. Mr. McCarthy expressed that we are not three teams working for one City; we are one team. Mr. McCarthy reiterated that although staff desires documents from architects that are perfect, there are often clarifications that are necessary as well as field inspections that require adjustments. Mr. Sullivan inquired on the transient occupancy tax (tot) and how it is less now as well as the retail tax and asked if we could be careful about volunteering to do these modifications in the future so we don't over extend ourselves. He commented on how the City is in great shape but felt that we should not be tapping into the reserves fund. Mr. McCarthy stated that the operations of the housing division is funded from RedevelopmenYs 20% set aside monies. These funds are received from property taxes and are not transferred to the general fund. The 20% set aside 0 Housing Commission Minutes August 13, 2008 funds are prescribed by law that they have to be used strictly for housing purposes such as capital improvements and to subsidize our properties. Mr. Sullivan commented on the appeals that are currently taking place within the assessor's o ce with regard to the reduction of property values. Mr. McCarthy stated that the Agency is monitoring those appeals very closely and is aware that there will be a decline in property taxes which concerns the 20% set aside funds. He commented about two developer projects that have gone back to the bank. He further stated that this particular change order was reviewed and decreased for items that were not deemed to be necessary. With regard to the general funds, Mr. McCarthy stated that this was an area that is closely monitored since these are the operating funds that pay for public safety such as the sheriff's contract and fire department. He further explained municipal finance with regard to the revenue sources specifically sales tax and tot and how the economy is affecting it. VII. CONTINUED BUSINESS VIII. INFORMATIONAL ITEMS A. HOUSING AUTHORITY NEWSLETTER Newsletters were provided to the Commission for August. B. AGENCY HOME IMPROVEMENT PROGRAM UPDATE An update on the Home Improvement Program (HIP) was provided to the Commission for review. IX. NEXT MEETING DATE — September 10, 2008 The Commission was advised on the change of the next meeting location to the Community Service Conference Room. ADJOURNMENT With members of the Housing Commission concurrence Leo Sullivan, Housing Commission Chair, adjourned the meeting at 3:50 p.m. I l X ' / l'J k J Patty Leon ecording Secretary 5 PALM DESERT REDEVELOPMENT AGENCY INTEROFFICE MEMORANDUM TO: RACHELLE KLASSEN, CITY CLERK FROM: PATTY LEON, RECORDING SECRETARY v DATE: AUGUST 14, 2008 SUBJECT: HOUSING COMMISSION MINUTES Attached is the following Housing Commission Meeting Minutes approved at the Housing Commission meeting held August 13, 2008: July 9, 2008 Please submit to the Housing Authority Board Thank you. cc: Carlos L. Ortega, Executive Director I P.ei V d e- RY HOUSG AUTH O ory 6 ,8' • VERIFIED BY: Original on file with City C er Office C V CITY OF PALM DESERT HOUSING COMMISSION MINUTES JULY 9, 2008 I. CALL TO ORDER Leo Sullivan, Housing Commission Chair, convened the meeting at 3:30 p.m. II. ROL CALL Present: Members Absent: Donna Lewis Natalie Russo Leo Sullivan Verna Smith Jane Turner Also Present: Richard S. Kelly, Councilmember Liaison Justin McCarthy, ACM for Redevelopment Dave Yrigoyen, Director of RedevelopmenUHousing Janet Moore, Director of Housing Martin Alvarez, Redevelopment Manager James Conway, Project Coordinator Patty Leon, Recording Secretary Guest(s): Teresa Vakili, RPM Company J. Wade Tucker, Potential Housing Commissioner III. ORAL COMMUNICATIONS IV. CONSENT CALENDAR A. MINUTES of the Regular Housing Commission meeting of June 11, 2008. With a Motion made by Commissioner Smith and seconded by Commissioner Turner the minutes of June 11, 2008 were unanimously approved. Housing Commission Minutes V. REPORTS AND REMARKS A. COMMISSION REPORTS July 9, 2008 Janet Moore reported on the 2008 Coachella Valley Workforce Housing Summit meeting that took place at the new Agua Caliente Casino Resort and Spa in Rancho Mirage. In attendance were Verna Smith, Leo Sullivan and several City staff members. The purpose of the summit was to bring together local cities, agencies and developers and address the needs for the affordable housing market in the Coachella Valley. The idea is to create a regional housing trust to assist these entities with the development of affordable housing. Members of the community are being sought to form a Blue Ribbon Committee that will put together that frame work and initiate a 501 nonprofit as well as the funding mechanism. Elected o cials and city managers requested that this committee be a private entity. Leo Sullivan stated that the Tribe has been discussing this issue for almost a year. Given that gas prices are high, employees who live in Yucca Valley, Beaumont, and Desert Hot Springs are finding it difficult to get to work at the Rancho Mirage Casino. Verna Smith stated that she was impressed with the conversations from different entities requiring housing such as the hotel industries and sheriff's department. Mrs. Moore also mentioned a presentation from Sheriff Sniff with regard to the new correctional facilities and how those employees will require housing. Mr. Sullivan addressed councilmember Richard Kelly and asked on the number of employees currently employed at the City of Palm Desert. Councilmember Kelly stated that there are 150 employees and did not expect the number to grow. He stated that the philosophy is to contract as much as possible. He felt that it would be easier to manage in hard times with fewer employees. He commented that the City of Palm Desert has a good reputation for the best operating City. Mr. Sullivan stated that there might be other cities that will need housing for their employees. Mr. Kelly stated that, from his opinion, he felt that the other cities of the Coachella Valley have not stepped up to provide affordable housing as they should compared to what the City of Palm Desert has done. He reiterated that 2 Housing Commission Minutes July 9, 2008 the City of Palm Desert has the best maintained affordable housing than anywhere in the worid; stating that this was his humble opinion. Mr. Sullivan agreed and expressed that for that reason most of the members of the Housing Commission are on this commission. Jane Turner asked if the meeting covered any information with regard to public transportation. Mr. Sullivan stated that the meeting primarily focused on the joint powers authority to address the housing needs. He expressed that he had walked out of the meeting with a positive feeling. Justin McCarthy stated that one thing to keep in mind was that there is nothing stopping the members of the Tribes from developing housing for their workforce on their property and/or reservations. Mrs. Moore thanked Jane Turner for attending the study session held as a joint meeting with the Planning Commission and the City Council with regard to the Housing Element and planning the City's purposes. Ms. Turner stated it was a very informative meeting since she was not familiar with that part of the process. B. RPM MONTHLY STATUS REPORTS The Commission reviewed the Monthly Status Report for May. C. REPORT #1 - MONTHLY OCCUPANCY AND AVERAGE RENT STATEMENT The Commission reviewed the Monthly Occupancy and Average Rent Statement for May. D. REPORT #2 — MONTHLY NET OPERATING INCOME STATEMENTS The Commission reviewed the Monthly Net Operating Income Statements for May. E. HOUSING AUTHORITY PROPERTIES UPDATE The update on the Housing Authority properties was reviewed by the Commission. James Conway summarized the report. 3 Housing Commission Minutes July 9, 2008 Leo Sullivan asked on the trash enclosure replacement at Candlewood Apartments. Mr. Conway stated that the trash enclosure is not ADA accessible nor do they provide for recycle bins and therefore will be replaced. F. City of Palm Desert City Council, Redevelopment Agency and Housing Authority Six Month Strategic Objectives. The Commission was provided with an update on the Strategic Objectives for the City of Palm Desert. Janet Moore stated that City Council had recently met to identify objectives for the next six months (June 19, 2008 - December 1, 2008) as well as the three year strategic goal. Leo Sullivan asked if the Housing Commission may assist the Agency and/or Housing Authority with the goal. Justin McCarthy stated that this information was a continuation of the strategic objectives that where identified in the initial strategic planning session. He noted that there is one item that relates to housing which is the issue of coming up with a long term maintenance plan for the Housing Authority properties of which staff is currently working on. A question raised by the City Council was do we have a formalized reserve study in terms of maintaining our housing assets for the long term. Upon question of a reserve study, Mrs. Moore stated that a reserve study was conducted a few years ago. She stated that when the Agency took over the properties there had not been a lot of capital maintenance done at that time. The reserve study did identify those items but the study itself was significantly high in cost, and would require conducting a study every year to be accurate. In addition, the study required setting aside a significant amount of money of which the Director of Finance reviewed in detail and recommended reserving our fund balance for replacement expenses and deferred maintenance. The fund has been used to renovate units and replace appliances, as called for in the reserve study. She noted that it would be a good time to do a new reserve study to see what the suggestions are. Janet Moore stated that a Replacement Reserve Plan was brought forward to this Commission as well as the Housing Authority Board. Both parties questioned the amount set aside of $250 per unit and how it seemed low. Staff was tasked with doing a new reserve study to see what a per-door cost would be now. Staff is in the process of addressing this issue. Housing Commission Minutes July 9, 2008 Mr. McCarthy provided a brief overview of the projects that are moving forvvard such as the Westfield project and continuing discussions on whether or not to move forward with the Desert Willow hotel. He also noted that the City Council had approved the land disposition for the sheriff's facility that will be located on Gerald Ford. Councilmember Kelly also stated that the indoor recreation center with a pool will be moving forward. Dave Yrigoyen stated that Agency is working with the County to issue bonds to fund the sheriffs facility project. VI. NEW BUSINESS A. Laguna Palms — Notice of Completion Rec: By Minute Motion: Action: Motion was made by Commissioner Smith and seconded by Commissioner Russo to forward a recommendation to the Palm Desert Housing Authority Board to authorize the City Clerk to file a Notice of Completion for the project known as Laguna Palms interior, exterior, and site renovation (Contract No. HA-25760). James Conway reviewed the staff report and asked for a recommendation to move forward and release the retention of this project. VII. CONTINUED BUSINESS VIII. INFORMATIONAL ITEMS A. HOUSING AUTHORITY NEWSLETTER Newsletters were provided to the Commission for July. B. AGENCY HOME IMPROVEMENT PROGRAM UPDATE An update on the Home Improvement Program (HIP) was provided to the Commission for review. James Conway provided a brief summary of the update. He stated that six are in the process of construction with two nearing completion. Housing Commission Minutes July 9, 2008 Janet Moore stated that the HIP program is currently very active with applications. She stated that there were two applications of emergency nature concerning air conditioning issues and water issues. At this time, Mrs. Moore reported on the Agency's continuous efforts to acquire properties within the City of Palm Desert. She stated that currently there is a property under negotiations that will not be part of the affordable housing portfolio. The Agency will maintain it as a market property. Upon question on the number of rental properties owned by the Agency, Mrs. Moore replied one as well as several homes that are part of projects such as the Alessandro Alley project. Justin McCarthy commented that the Agency does not buy homes for the purpose of providing housing but are bought as part of a public works or infrastructure project. With regard to the property currently owned by the Agency, it has not been determined as to its long term use. There was a formal introduction made by City staff members to Mr. Wade Tucker who was in attendance as a potential Housing Commission member. Councilmember Kelly commented how Commissioners have name plates for identification purposes and suggested staff should have them too. Wade Tucker provided a brief background of himself and stated that he was interested in the position currently open in the Housing Commission. Councilmember Kelly asked Mr. Tucker to submit his application since the process might take some time. The Commission agreed. IX. NEXT MEETING DATE — August 13, 2008 ADJOURNMENT With members of the Housing Commission concurrence Leo Sullivan, Housing Commission Chair, adjourned the meeting at 4:05 p.m. Patty Leon, I ecording Secretary 0 1 PALM DESERT REDEVELOPMENT AGENCY INTEROFFICE MEMORANDUM TO: RACHELLE KLASSEN, CITY CLERK FROM: PATTY LEON, RECORDING SECRETARY DATE SUBJECT JULY 10, 2008 HOUSING COMMISSION MINUTES Attached is the following Housing Commission Meeting Minutes approved at the Housing Commission meeting held July 9, 2008: June 11, 2008 Please submit to the Housing Authority Board. Thank you. Y HOUSG AUTH = ON g' o'C7g dJK / cc: Carlos L. Ortega, Executive Director VERIFIED BY: Originai on file with City Cler s Office CITY OF PALM DESERT HOUSING COMMISSION MINUTES JUNE 11, 2008 I. CALL TO ORDER Leo Sullivan, Housing Commission Chair, convened the meeting at 3:30 p.m. II. ROLL CALL Present: Members Absent: Donna Lewis Natalie Russo Leo Sullivan Verna Smith Jane Turner Also Present: Richard S. Kelly, Councilmember Liaison Dave Yrigoyen, Director of RedevelopmenUHousing Janet Moore, Director of Housing Martin Alvarez, Redevelopment Manager James Conway, Project Coordinator Jessica Gonzales, Management Analyst Patty Leon, Recording Secretary Guest(s): Teresa Vakili, RPM Company J. Wade Tucker, Potential Housing Commissioner 111. ORAL COMMUNICATIONS IV. CONSENT CALENDAR A. MINUTES of the Regular Housing Commission meeting of May 7, 2008. With a Motion made by Commissioner Russo and seconded by Commissioner Lewis the minutes of May 7, 2008 were unanimously approved. Housing Commission Minutes V. REPORTS AND REMARKS A. COMMISSION REPORTS June 11, 2008 Janet Moore reported on the Housing Adhoc Subcommittee meeting that took place May 28, 2008. She noted that the subcommittee discussed the updated version of the site plan for Country Village. The main focus was the residential portion as well as the configuration of the units. She asked Jane Turner for any comments on the meeting. Jane Turner stated that at this time the site plan is in a preliminary stage and felt that the project is going in the right direction. Mrs. Moore stated that there is another meeting scheduled in June and depending on the information provided and discussion, staff will bring something to the Commission for review. Leo Sullivan commented that he read in the newspaper that the Agency is considering separating Casey's Restaurant from the project in terms of the fees. Mrs. Moore stated that the Redevelopment Agency is considering transferring that portion of the property to the lessee of Casey's Restaurant. B. SUMMARY OF CITY COUNCIL AND REDEVELOPMENT AGENCY AGENDA ITEMS RELATED TO HOUSING, AND SUMMARY OF CITY COUNCIL, HOUSING AUTHORITY, AND REDEVELOPMENT AGENCY ACTIONS The summary was reviewed by the Commission. C. RPM MONTHLY STATUS REPORTS The Commission reviewed the Monthly Status Report for April. Teresa Vakili provided a brief update on Country Village and Laguna Palms. She stated that there are currently 11 tenants at Country Village. Laguna Palms has five occupied units and the leasing o ce is in the process of reviewing 26 applicants. Jane Turner requested a description of the abbreviated codes used under base unit type of the report. 2 Housing Commission Minutes June 11, 2008 Ms. Vakili stated that the base unit refers to the market rent on the property and the letters represent the type of units such as a studio, one- and two-bedroom. She noted that the letters HSE represent the house at Pueblos East. Leo Sullivan inquired on the number of turnovers at the multi-family apartments. Ms. Vakili responded that at One Quail Place the average number of turnovers is 8 to 11 units per month for reasons such as tenants buying homes and/or changing jobs. Mr. Sullivan asked on the percentage of evictions at the properties. Ms. Vakili stated that the number of evictions is low and estimated to be 3 evictions a year at One Quail Place which is the larger property. Janet Moore referenced the informational statistics located on the last page of the report and asked the Commission if this information was helpful. The commission agreed that it is informative and should continue as part of the Monthly Status Report. D. REPORT #1 - MONTHLY OCCUPANCY AND AVERAGE RENT STATEMENT The Commission reviewed the Monthly Occupancy and Average Rent Statement for April. Verna Smith asked if there have been any late payments due to the economy. Teresa Vakili stated that there are late payments even though the rental rates are low with the affordable program but it does happen. E. REPORT #2 — MONTHLY NET OPERATING INCOME STATEMENTS The Commission reviewed the Monthly Net Operating Income Statements for April. F. HOUSING AUTHORITY PROPERTIES UPDATE The update on the Housing Authority properties was reviewed by the Commission. James Conway summarized the report. Housing Commission Minutes June 11, 2008 Leo Sullivan asked why the air conditioning condensing units were cleaned at La Rocca Villas being that the property is fairly new. Mr. Conway stated that this service is provided by an energy group that is conducting assessments of all the Housing Authority properties for free. Mr. Sullivan asked about Palm Village's lateral line blockage. Mr. Conway stated that he was not exactly aware of the reason for the blockage but that he would further investigate. Mr. Sullivan commented that this issue did not seem common since iYs not reported at the other properties. Mr. Conway stated that it has happened at the other properties but might not have been listed on the update. Given that Palm Village Apartments is a newer property, Mr. Conway felt it was necessary to list this issue since there is not much to report at this time. Mr. Sullivan also commented on the low Freon levels of two A/C systems at Palm Village Apartments and again expressed concern with the property being fairly new. Mr. Conway stated that leaks do occur with new and old A/C units. He noted that staff is currently working with the warranty companies to fix the leaks at both Palm Village and California Villas. Upon question of the contractor for Palm Village, Janet Moore stated that staff is responding to anything that was not done to the level that would normally be required for that property. Mr. Sullivan informed those new to the Commission that Palm Village was a four year project who had a contractor that quit all construction responsibilities. He noted that staff basically constructed this project themselves. As previously requested at the last meeting, Mr. Conway stated that Neighbors Apartments was built in 1988, and therefore the cabinets are in much need of replacement. Mrs. Moore reported that Notices of Eligibility have been sent to those 11 tenants currently at Country Village with regard to payment for relocation. As of this date, those tenants have not been given a 90-day notice to move; staff will update the Commission of its notification. She further noted that Martin Alvarez is working with an architect for the deconstruction plan. C! Housing Commission Minutes June 11, 2008 Mr. Sullivan inquired as to why an architect was needed to deconstruct the property. Mrs. Moore stated that staff is trying to be environmentally friendly with respect to the deconstruction of the buildings. The architect will be responsible for the specifications as to how the demolition is to be done and how to properly dispose those items. She noted that currently there are specifications in place to demolish small projects but being that Country Village is a larger property staff is considering an environmentally friendlier approach. Martin Alvarez stated that there also needs to be a utility coordination with respect to its identification for future use. Mr. Sullivan asked on the architecYs responsibility. Mr. Alvarez stated that the architect will be responsible for providing a plan that will identify items that clearly need to be properly disposed of and determine whether or not we will re-use those items or recycle them. In addition, there are certain LEED certification points that may be achieved through this process. Councilmember Richard Kelly provided an example of the deconstruction of the first condominium complex located where The Gardens on EI Paseo are. He explained how the complex was in bad shape as well as there being some historical arguments. He stated that when that project was demolished everything on that site was recycled except the asbestos found or composition shingles. Mr. Sullivan stated that we know what can and cannot be recycled and inquired as to why we are pulling an architect and asked if we were trying to push the responsibility onto somebody else when ultimately we are the ones that have to pay for it. Mr. Alvarez reiterated that a specification plan has to be in place when the project goes out to bid. Staff does not have the expertise to specify materials that need to be disposed or recycled. Councilmember Kelly also added that there are a lot of requirements with respect to identifying asbestos and other environmental hazards and how to properly handle them. Dave Yrigoyen agreed that there are a lot of requirements with respect to deconstructing a large complex. He stated that permits will have to be pulled from the Air Quality Management District (AQMD) in order to comply with their air quality requirements. He noted that if for some reason there is a discrepancy with the work, the architect will be liable. 5 Housing Commission Minutes June 11, 2008 Mr. Conway stated that the architect will have a better understanding of the technical specifications with regard to the recycled components and how it can be applied to the new design. VI. NEW BUSINESS VII. CONTINUED BUSINESS VIII. INFORMATIONAL ITEMS A. HOUSING AUTHORITY NEWSLETTER Newsletters were provided to the Commission for June. B. AGENCY HOME IMPROVEMENT PROGRAM UPDATE An update on the Home Improvement Program (HIP) was provided to the Commission for review. James Conway provided a brief summary of the update. He stated that nine are in the process of construction with four nearing completion. Eight are in the application process of which seven were received from mobile home parks. Mr. Sullivan asked on the number of homeowners from Palm Desert Greens that have applied for the HIP program. Mr. Conway stated that he did not have a specific number but believed there are two homeowners that have applied for HIP assistance from Palm Desert Greens. Jane Turner referenced the update and asked if the four digit street address listed was incorrect. Mr. Conway stated he would review the file and correct if necessary. Janet Moore stated that there are two manufactured homes that two different types of addresses yet both are located at Silverspur. At this time, Mrs. Moore reminded the Housing Commission of the Housing Summit meeting scheduled on June 19, 2008. Housing Commission Minutes June 11, 2008 Mrs. Moore also announced that a tentative date of Friday, November 7, 2008 at 9:00 a.m. has been scheduled for the housing tour. Councilmember Kelly mentioned that he had a conversation with Fred Bell, Director of Business Industries Association, with regard to housing and Mr. Bell expressed that he was interested in attending the housing tour. Mrs. Moore stated that an invitation will be extended to Mr. Bell. IX. NEXT MEETING DATE — July 9, 2008 ADJOURNMENT With members of the Housing Commission concurrence Leo Sullivan, Housing Commission Chair, adjourned the meeting at 3:56 p.m. l l V -( Patty Leon, F ecording Secretary 7 1 ' PALM DESERT REDEVELOPMENT AGENCY INTEROFFICE MEMORANDUM TO: RACHELLE KLASSEN, CITY CLERK FROM: PATTY LEON, RECORDING SECRETARY DATE: SUBJECT: JUNE 12, 2008 HOUSING COMMISSION MINUTES l' Attached is the following Housing Commission Meeting Minutes approved at the Housing Commission meeting held June 11, 2008: May 7, 2008 Please submit to the Housing Authority Board. Thank you. cc: Carlos L. Ortega, Executive Director arP v,`il,gY HOUSG AUTH ON I n -(o -0 8 VERIFIED BY:_.— Original on file with City Clerk's Office CN l CITY OF PALM DESERT HOUSING COMMISSION MINUTES May 7, 2008 CALL TO ORDER Leo Sullivan, Housing Commission Chair, convened the meeting at 3:30 p.m. II. ROLL CALL Present: Donna Lewis Natalie Russo Leo Sullivan Jane Turner Members Absent: Verna Smith Also Present: Richard S. Kelly, Councilmember Liaison Justin McCarthy, ACM for Redevelopment Dave Yrigoyen, Director of Redevelopment/Housing Janet Moore, Director of Housing Martin Alvarez, Redevelopment Manager James Conway, Project Coordinator Jessica Gonzales, Management Analyst Patty Leon, Recording Secretary Guest(s): Teresa Vakili, RPM Company Ron Tucker, Potential Housing Commissioner III. ORAL COMMUNICATIONS IV. CONSENT CALENDAR A. MINUTES of the Regular Housing Commission meeting of April 9, 2008. With a Motion made by Commissioner Turner and seconded by Commissioner Lewis the minutes of April 9, 2008 were unanimously approved. Housing Commission Minutes V. REPORTS AND REMARKS A. COMMISSION REPORTS May 7, 2008 Leo Sullivan reported that Commissioner Linda Ward passed away last month. Janet Moore stated that a memorial stone will be placed in the Rose Garden located at the Civic Center Park in memory of Linda Ward. Staff will notify the Commission of the actual wording on the stone as well as the placement date. Mrs. Moore announced that two meetings have been scheduled for the Housing Adhoc Sub-Committee: May 28" at 1:00 pm and June 24ih at 2:00 pm. A Motion was made by Commissioner Lewis and seconded by Commissioner Turner to appoint the alternative Commissioner Jane Turner as the replacement for Linda Ward on the Adhoc Sub-Committee. For informational purposes, Mrs. Moore stated that the Adhoc Sub-committee consists of two members of the City Council, two members of the Housing Commission, and several City staff members. The purpose of the adhoc sub- committee is to discuss development and/or planning stages of housing projects. She noted that the sub-committee is currently discussing Country Village Apartments. B. SUMMARY OF CITY COUNCIL AND REDEVELOPMENT AGENCY AGENDA ITEMS RELATED TO HOUSING, AND SUMMARY OF CITY COUNCIL, HOUSING AUTHORITY, AND REDEVELOPMENT AGENCY ACTIONS The summary was reviewed by the Commission. C. RPM MONTHLY STATUS REPORTS The Commission reviewed the Monthly Status Report for March. Leo Sullivan questioned the six vacancies at Taos Palms. Teresa Vakili stated that two families were transferred to Palm Village Apartments by request and the rest moved out on their own, which provided the opportunity to renovate those units. Monies were set aside to allow for these renovations as part of the mid-year budget adjustments. Mr. Sullivan asked about Laguna Palms occupancy date. Mrs. Vakili responded that tenants will be able to move in this upcoming weekend. Housing Commission Minutes May 7, 2008 James Conway provided a brief explanation on the construction renovations at Taos Palms. He stated that the property is one of the older properties and in much need of attention. Two units were carefully inspected to determine the structural integrity, drywall conditions, plumbing, electrical as well as environmental tests and termite inspections. Staff is looking at plans to bring the units to current standards with the monies that were set aside for this project. Janet Moore stated that from the day the property was acquired, one of the buildings that houses part of those six units has consistently had a pest control problem. Several treatments were performed and were not successful. She noted that for this reason the units were not re-rented, given the impending repairs. Natalie Russo referenced Desert Pointe's report and asked if the eviction listed was unusual. Mrs. Vakili stated that evictions are unusual but do take place. She mentioned that the eviction shown on the report was due to non-payment of rent. She also noted that the process leading to an eviction can take up to 2'/z months. D. REPORT #1 - MONTHLY OCCUPANCY AND AVERAGE RENT STATEMENT The Commission reviewed the Monthly Occupancy and Average Rent Statement for March. Jane Turner referenced SagecresYs report and asked if the tenants have been certified onto the program. Teresa Vakili stated that at this point there has not been any tenants that qualify for the program. She noted that the property is currently 50% occupied. E. REPORT #2 — MONTHLY NET OPERATING INCOME STATEMENTS The Commission reviewed the Monthly Net Operating Income Statements for March. Leo Sullivan asked for clarification on the income category very low. Janet Moore stated that the area median for a family of four is $62,000 at 100%. From 0 to 50% is considered very low, 50 to 80% is low, and 80 to 120% is moderate. She stated that our rent structure starts at 20% and above since Housing Commission Minutes May 7, 2008 most people below 20% typically cannot afford to even pay the utilities and are in need of fully subsidized housing. She noted that the responsibility of the Agency is to provide affordable housing and not no-cost housing at this time. F. HOUSING AUTHORITY PROPERTIES UPDATE The update on the Housing Authority properties was reviewed by the Commission. James Conway summarized the report. Leo Sullivan inquired on the date Neighbors' Apartments was built and noted the replacement of cabinetry. Mr. Conway replied that the property is approximately 30 years old. Jane Turner referenced California Villas' sampling of asbestos to the remaining 25 units and asked if the other units had been tested. Mr. Conway stated that part of the improvements of Phase B is to renovate the interior of the remaining 25 units which requires asbestos testing before starting the work. He noted that all of the other units were tested for asbestos. Ms. Turner referenced Catalina Gardens' rewiring of cable and asked if it is referring to television cable. Mr. Conway stated that the cable is the electrical wire that supports the carport lighting. He stated that the wires were buried without proper conduit which may cause a short when disturbed. At this time, staff is asking for proposals but may look at different options for lighting. Ms. Turner referenced One Quail Place and asked if the repairs on the carports listed are referring to the recently renovated carports. Mr. Conway replied yes and explained that the reroofing project of the carports addressed only the fascia, new rock and sheathing and not necessarily the beams or posts. The cost to replace and maintain the posts and beams has been added to the maintenance budget for One Quail Place. He added that this might be a recurring maintenance to the beams and columns. Ms. Turner also questioned the damaged bridges and sidewalks at One Quail Place and asked if they had recently been refurbished. Housing Commission Minutes May 7, 2008 Mr. Conway stated that the bridges have been replaced. However, the roots of the existing trees have lifted part of the concrete on some of the bridges and sidewalks and will need replacing or repairing. With regard to the trees, the tree removal project coordinated by Spencer Knight allows for 12 tree removals for this property. At this time, discussion ensued with a possible housing tour in the fall. Donna Lewis and Ron Tucker both mentioned that they have only seen two properties. Justin McCarthy advised them that a personal tour can be arranged, at their request, to visit the properties. A tentative date of October for a Housing tour was agreed upon. G. HOUSING AUTHORITY BUDGET CLARIFICATION A memo regarding the Housing Authority Budget clarification was provided by Veronica Tapia. As a request made from the last meeting with regard to the Housing Authority 2008-09 budgets, Janet Moore stated that the summary clarifies the "Other Rental Income". She explained how RPM Company separates Rental Income and Other Rental Income as two line items while the Authority's budget does not. She also stated that after further review of the budgets, staff also indentified a link that had been broken and was corrected as well. VI. NEW BUSINESS VII. CONTINUED BUSINESS VIII. INFORMATIONAL ITEMS A. HOUSING AUTHORITY NEWSLETTER Newsletters were provided to the Commission for May. B. AGENCY HOME IMPROVEMENT PROGRAM UPDATE An update on the Home Improvement Program (HIP) was provided to the Commission for review. James Conway referenced the report and reported 22 applicants that are in various stages. He provided a brief explanation of an emergency grant 5 Housing Commission Minutes May 7, 2008 applicant that resides at one of the mobilehome parks. He noted that of the 22 applications 7 are from mobilehome parks. Justin McCarthy stated that the applications received from mobilehome parks represents the amendment to the program that was approved recently. Janet Moore reported on the issues related to the current economy with regard to the Home Improvement Program. She stated that sometimes the homes listed on the report might seem stagnant due to the homeowners backing out from signing contracts with contractors. Homeowners have mentioned that they are afraid to encumber their home or mobile home with additional debt due to the worries that the economy is going to turn around and their houses might not be worth what they were in the last few years. She noted that applicants are very pleased with the program but are a little doubtful about the economy. Jane Turner mentioned an item on the City Council agenda with regard to a property sale at Desert Rose and asked if it was a foreclosure sale. Mrs. Moore stated that Desert Rose has had approximately 95 resales out of the original 161 houses. She noted that the Desert Rose property listed on the agenda is not a foreclosure but a request to acquire the property in the event that the Agency's resale rights control expires. The Agency is given 60 days to purchase the property in the event a qualified buyer is not identified. Upon question, she mentioned that there are two properties for sale at Desert Rose. One of the homes has a resale price of $118,000 and other home is listed at $138,000. Both homes were classified as a 9 or a 10 in terms of the property's condition from the agent that represents the identified buyers. Upon question on Habitat for Humanity's vacant lot located on EI Cortez, Mrs. Moore stated that Habitat is in the process of contracting with a contractor to move forward with the project. Natalie Russo asked if there was an evaluation or appraisal done to the properties requesting grants or funds from the Home Improvement Program. James Conway stated that loan information is requested as part of the application. Janet Moore stated that the program states that at the time the application is in process for HIP Assistance, the property cannot be encumbered in excess of eighty percent (80%) of its current fair market value, which is determined by comparable sales data using the Multiple Listing Services (MLS). She stated that if the homeowner requests to have an appraisal done, they are made C Housing Commission Minutes May 7, 2008 aware that they will have to pay for the cost. She noted that by using the MLS comparables it also saves the owner $350 for an appraisal. Leo Sullivan stated that given the circumstances of the market it might be worth our while to get appraisals done since he felt that the MLS is too far behind. Mrs. Moore stated that she was aware of that and explained that in most cases the loans to value are nowhere close to 80% so this does not happen very often. She did provide an example of a recent property where the market value using MLS exceeds the current encumbrances by $75,000, in which case there was no method available that could value the home to meet the program guidelines. She noted that in the event there is any possibility that we could meet the guidelines, we would definitely suggest it to the owner. Mrs. Russo mentioned that there should be an outreach to the local banks with regard to the Home Improvement Program. IX. NEXT MEETING DATE — June 11, 2008 ADJOURNMENT With members of the Housing Commission concurrence Leo Sullivan, Housing Commission Chair, adjourned the meeting at 4:07 p.m. V .- Patty Leon, R cording Secretary 7 PALM DESERT REDEVELOPMENT AGENCY INTEROFFICE MEMORANDUM TO: RACHELLE KLASSEN, CITY CLERK FROM: PATTY LEON, RECORDING SECRETAR SUBJECT MAY 15, 2008 HOUSING COMMISSION MINUTES Attached is the following Housing Commission Meeting Minutes approved at the Housing Commission meeting held May 7, 2008: April 9, 2008 Please submit to the Housing Authority Board. Thank you. YeCe1YcE Ie,gYHOUSGAUTH 5'O ON in—Ic`-G$ VERIFIED BY: 1 Original on file with City Clerk's Office cc: Carlos L. Ortega, Executive Director CITY OF PALM DESERT HOUSING COMMISSION MINUTES April 9 2008 CALL TO ORDER Leo Sullivan, Housing Commission Chair, convened the meeting at 3:30 p.m. II. ROLL CALL Present: Donna Lewis Natalie Russo Verna Smith Leo Sullivan Jane Turner Members Absent: Linda Ward Also Present: Bob Spiegel, Councilmember Liaison Justin McCarthy, ACM for Redevelopment Dave Yrigoyen, Director of RedevelopmenUHousing Janet Moore, Director of Housing Martin Alvarez, Redevelopment Manager James Conway, Project Coordinator Jessica Gonzales, Management Analyst Patty Leon, Recording Secretary Guest(s): Jim Foley, RPM Company Teresa Vakili, RPM Company Ron Tucker, Potential Housing Commissioner III. ORAL COMMUNICATIONS IV. CONSENT CALENDAR A. MINUTES of the Regular Housing Commission meeting of March 12, 2008. Housing Commission Minutes April 9, 2008 With a Motion made by Commissioner Smith and seconded by Commissioner Turner the minutes of March 12, 2008 were unanimously approved. V. REPORTS AND REMARKS A. COMMISSION REPORTS Janet Moore stated that the Landscape Manager, Spencer Knight, recently completed the annual tree trimming contracts and requested that three staff reports, distributed to the Commission, be added to the Agenda under New Business for review and recommendation. She noted that the staff reports will be forv arded to the City Council meeting of April 24th to meet the tree trimming cycle. A Motion was made by Commissioner Turner and seconded by Commissioner Smith to add Contract No's, C27450, C27440, and C27430 to the Agenda for discussion under New Business. B. SUMMARY OF CITY COUNCIL AND REDEVELOPMENT AGENCY AGENDA ITEMS RELATED TO HOUSING, AND SUMMARY OF CITY COUNCIL, HOUSING AUTHORITY, AND REDEVELOPMENT AGENCY ACTIONS The summary was reviewed by the Commission. C. RPM MONTHLY STATUS REPORTS The Commission reviewed the Monthly Status Report for February. At this time, Leo Sullivan introduced Mayor Pro-tem Councilmember Bob Spiegel to the Commission and guests. Also introduced were Jim Foley, Vice President for RPM Company and Teresa Vakili, Regional Supervisor for RPM Company. D. REPORT #1 - MONTHLY OCCUPANCY AND AVERAGE RENT STATEMENT The Commission reviewed the Monthly Occupancy and Average Rent Statement for February. Leo Sullivan inquired on Sagecrest not listed on the report. Teresa Vakili stated that Sagecrest will be listed in next month's report since the property closed escrow on February 29, 2008. 2 Housing Commission Minutes April 9, 2008 E. REPORT #2 — MONTHLY NET OPERATING INCOME STATEMENTS The Commission reviewed the Monthly Net Operating Income Statements for February. Leo Sullivan inquired on a time frame of when the moderate categories will be down to a minimal number of tenants. Teresa Vakili reported an average of 78 moderate families, between 80% and 120% of the county median, within the 1100 units. Those families qualify for the affordable program unless they exceed the 120%. She stated that based on the new HCD income limits for 2008 the report will fluctuate and anticipates a decrease in the moderate categories. F. HOUSING AUTHORITY PROPERTIES UPDATE The update on the Housing Authority properties was reviewed by the Commission. James Conway summarized the report highlighting the major projects in progress such as California Villas Phase B and Laguna Palms fire inspection completion. Verna Smith inquired on the completed unit inspection at Country Village. Janet Moore stated that a site review is in process for Country Village. Bryce White inspected a couple of units to determine what type of environmental testing would be necessary and the suitable consultants to seek. With regard to the Adhoc Sub-committee meeting, Janet Moore reported that the meeting was postponed to allow Commissioner Linda Ward who is apparently very ill the opportunity to attend and receive appropriate comments from both Housing Commissioners appointed. Mrs. Moore stated that the developer of Palm Desert Country Club's attorney is reviewing all actions brought before the City Council with regard to Country Village. At the request of our City Attorney actions related to the relocation and design for deconstruction have been postponed pending his review. Martin Alvarez stated that he anticipates moving forward with both action items to the City Council at their first meeting in May. Subsequent to the approval of the relocation plan, an architect will be selected to prepare the deconstruction plans. i7 Housing Commission Minutes April 9, 2008 Upon question, Mr. Alvarez stated that the deconstruction plan will allow an environmentally friendly deconstruction process as well as work toward a LEED certification. Leo Sullivan inquired on the items that may possibly be reused. Mr. Alvarez noted that he was not certain but possibly the wood, rafters, etc., exclusion of appliances. It was noted that the intent is to reuse the recycled materials on Country Village site if possible. Mr. Alvarez further noted that the primary focus is the recycling of certain materials such as pavements, concrete, etc. in general. Justin McCarthy stated that there are a number of items that allow points under the Leadership in Energy and Environmental Design (LEED) certification program also known as Green Building. He explained how there are certain requirements with respect to the deconstruction of buildings in a way that could be salvaged or recycled as opposed to using the landfilis. He stated that a notice was received from the members of the Palm Desert Country Club and how they felt we were not incompliance with the California Environmental Quality Act (CEQA). Staff addressed those concerns, which caused a small delay, and found that we are in compliance with the guidelines of CEQA. He further noted that this particular action is not necessarily sequential to the design process. Mr. Alvarez stated that Reuel Young with Interactive Design is contracted for the design concept. Mr. Young has submitted a preliminary concept of the site plan and is currently in review by staff as well as the Planning and Public Works Departments. The Commission suggested appointing an additional Housing Commission member to the Adhoc Subcommittee without replacing anyone to move fonnrard with the project. Jane Turner volunteered as an alternative member to the Adhoc Sub-Committee. Mr. McCarthy stated that the City Council also directed staff to cooperate and coordinate with the members of the Palm Desert Country Club with respect to Country Village master plan which includes Casey's, a fire station, and the apartments. A Motion was made by Commissioner Smith and seconded by Commissioner Russo to appoint Jane Turner as an alternate member to the Housing Adhoc Subcommittee in the event one of the members of the commission is not able to attend. 0 Housing Commission Minutes April 9, 2008 G. PALM DESERT HOUSING AUTHORITY SURVEY RESULTS The Commission was provided with the results of the survey mailed to all Palm Desert Housing Authority tenants. Janet Moore stated that the surveys are anonymously sent to all tenants and are color coded to distinguish which property the survey was received from. She noted that only those surveys received back via mail are counted as opposed to those that were hand delivered to the property managers. She noted that an impartial third party, not involved in the properties, tabulated the results of the surveys and comments. Subsequently, staff reviewed the comments and results to ensure they were accumulated appropriately. Mrs. Moore summarized the Overall Results report and stated that 36% of total units eligible to survey were received which excluded Country Village, Laguna Palms, La Rocca Villas, Palm Village, Pueblos East and Sagecrest. She noted that the fair and poor responses were discussed with RPM Company earlier that day. She stated that RPM Company received the survey report at the same time the Housing Commission and reviews the results very closely with their staff. Jim Foley stated that they do review the survey results and are considered very seriously. Leo Sullivan commented that it has improved from the past years and how this survey is the best that he has seen so far. Jane Turner expressed concern with the small representation from tenants. Mrs. Moore stated that it is difficult to determine the reasons tenants do not return the surveys because often times if things are fine, people have a tendency to ignore them, but felt that the overall results assisted staff with their review. NEW BUSINESS A. AWARD CONTRACT NO. C27450 TO TREE RITE OF BERMUDA DUNES FOR THE CITYWIDE TREE REMOVAL PROGRAM (PROJECT NO. 933-08) B. AWARD CONTRACT NO. C27440 TO WEST COAST ARBORIST, INC. OF OF ANAHEIM, CALIFORNIA FOR THE CITYWIDE TREE PRUNING PROGRAM (PROJECT NO. 932-08) 5 Housing Commission Minutes April 9, 2008 C. AWARD CONTRACT NO. C27430 TO TREE RITE OF BERMUDA DUNES FOR THE CITYWIDE PALM TREE PRUNING AND REMOVAL PROGRAM PROJECT NO. 931-08) As previously mentioned, Janet Moore reiterated that Spencer Knight did not want to miss the pruning schedule by waiting until May for approvals. In the future, he will try to get these reports to the Commission in a timely manner. Spencer Knight apologized for the short notice to review the reports. He stated that the two reports as previously done in the past years consists of tree trimming and pruning cycles which includes Housing Authority and City trees in order to obtain a better unit cost. The third staff report consists of the removal of trees. Mr. Knight stated that in the past, there was difficulty with the vendors getting the trees removed on time. Therefore, a separate contract to remove the trees along with the palm tree pruning is being requested in hopes this project is complete by the summer months. Upon question of the time sensitive, Mr. Knight stated that this project has to be completed by May 15th. He provided an explanation of the process of removing the foliage from the trees and exposing them to sunlight to allow for re-growth. If the foliage is exposed to too much sunlight it can get sun burn and damage the tissue underneath the bark which is difficult to recover. Mrs. Moore stated that Mr. KnighYs department is also considerate of the residents needs such as the trimming of palm trees after they flower or sometimes before to avoid flowers in the pool. Mr. Bob Spiegel commented that One Quail Place was a real big problem and asked if the issue with the trees was resolved. Mr. Knight stated that it has improved in terms of the healthy tree population at One Quail Place. Mr. Spiegel asked if the wind had damaged any trees. Mr. Knight responded that there was minor wind damage this year than last year. Jane Turner inquired on the unit costs of these contracts. Mr. Knight responded that the unit costs were listed on the proposals which were included in the bid package received. 0 Housing Commission Minutes Rec: By Minute Motion: April 9, 2008 Action: Motion was made by Commissioner Turner and seconded by Commissioner Russo to forward a recommendation to the Palm Desert Housing Authority Board to award Contract No. C27450 to Tree Rite of Bermuda Dunes, California for the citywide tree removal program Rec: By Minute Motion: Action: Motion was made by Commissioner Turner and seconded by Commissioner Russo to forward a recommendation to the Palm Desert Housing Authority Board to award Contract No. C27440 to West Coast Arborist, Inc. of Anaheim, California for the citywide tree pruning program (Project No. 932-08) Rec: By Minute Motion: Action: Motion was made by Commissioner Turner and seconded by Commissioner Russo to forward a recommendation to the Palm Desert Housing Authority Board to award Contract No. C27430 to Tree Rite of Bermuda Dunes, California for the citywide palm tree pruning and removal program D. RPM COMPANY FEE INCREASE Janet Moore reviewed the staff report, stating that although there was not a housing tour this year there were several events at the Housing Authority properties that showed their condition. In addition, consideration was given to the tenants' survey and periodic walk-through of the properties by staff members. Rec: By Minute Motion: Action: Motion was made by Commissioner Smith and seconded by Commissioner Turner to forward a recommendation to the Palm Desert Housing Authority Board to ratify an adjustment to the management fee property management services by and between the Palm Desert Housing Authority and Ray, Douglas, Ann and Patrick, Inc. A.K.A. RPM Company (HA 25970) 7 Housing Commission Minutes April 9, 2008 E. 2008-2009 HOUSING AUTHORITY BUDGET, ADMINISTRATIVE PLAN, AND REPLACEMENT RESERVE FUND. Janet Moore referenced the memo provided by Veronica Tapia which summarized the proposed budget that will be included in the City's Comprehensive Financial Plan with the Director of Finance. Leo Sullivan inquired on the capital improvements for La Rocca Villas. Mrs. Moore stated that there is a need for storage as previously mentioned by Linda Ward during the design discussion for La Rocca Villas. Staff is considering incorporating a pantry in the kitchen to store brooms and mops; currently stored on the patios. In order to maintain continuity, staff intends to match the pantry to the existing cabinetry in the kitchen. Jane Turner referenced the Totals for All Properties Budget Comparison sheet and asked if "Other Rental Income" was a new classification since there was nothing budgeted for 2007-2008. Mrs. Moore stated that those charges include late fees, credit report fees, etc. and are not necessarily rental fees. She noted that last year those charges were included in Other Rental Income, so she will review the amounts to see why there is nothing in the budget column for last year. Jane Turner asked how the amount budgeted for 2008-2009 Other Rental Income was determined. Mrs. Moore stated that a lot of the fees that were accrued or received last year are not recurring fees, given that most of the new properties are no longer fully occupied. She noted that income received for services such as laundry were to the properties and not a vendor as with all our other properties. She noted that staff would be more than happy to provide more information at the next Housing Commission meeting, and asked that the Commission forward a recommendation to the Director of Finance at this time with the understanding clarification is still needed for "Other Rental Income". Ms. Turner referenced the Capital Expenses for RPM and asked for clarification of what the item entails and commented on the significant amount budgeted for 2008-2009. Veronica Tapia stated that it depends on the timing of when RPM Company completes the capital improvements. She explained that out of the $674,764 budgeted for 2007-2008 only $214,717 was completed. Housing Commission Minutes April 9, 2008 Mrs. Moore stated that the Deputy Finance Director requested that we make our very best effort to budget the exact expenses of what is anticipated. She stated that there are certain projects that we are not able to accomplish because of barriers at the properties themselves. Justin McCarthy noted that those budgeted amounts that are not used are not lost but rather reverted back to the Redevelopment Agency budget and are re- budgeted the following year. Leo Sullivan referenced Candlewood Apartments Budget Comparison and commented that the gross potential and rental income budgeted for 2008/09 is significantly lower than last year. Mrs. Moore stated that the gross potential income is generally what a property can potentially earn. This year the gross potential has been adjusted for average rents as opposed to a percentage of units at market rent. She noted that the county median incomes have gone up significantly for 2008; the area median for a family of 4 is $62,000. Staff found through recertifications that most tenants are at the lower level which ultimately reduces their rents. Mr. Sullivan commented that the amounts budgeted for gross potential income was significantly low. Teresa Vakili added that there were four market units at Candlewood Apartments that have moved out and those units are now leased under the affordable program which reduced gross potential income for this coming year. Ms. Turner referenced Catalina Gardens Budget Comparison and stated that the payroll expense budgeted for 2008 seemed low. Ms. Vakili stated that it was based on the turnaround of property managers which reduced the payroll. Councilmember Bob Spiegel asked on the number of staff members included in the payroll. Ms. Vakili responded that there are three staff members whose payroll is adjusted accordingly between Pueblos, Candlewood, and Catalina Gardens Apartments. Mr. Sullivan referenced Country Village Budget Comparison and asked what the utility services and repairs and maintenance included. Mrs. Moore stated that Country Village has a contracted cable service with Time Warner Cable that requires billing of all 66 units whether or not the units E Housing Commission Minutes April 9, 2008 are occupied. Staff has negotiated its termination contingent upon 100% vacancy of the property. Mr. Sullivan asked on the number of units occupied at Country Village; Mrs. Moore responded 12 units. Mrs. Moore stated that the budget will be forwarded to the City Council at their second meeting in June which will allow staff to clarify any concerns from the Commission in May. Mr. Sullivan stated that if the Commission approves the recommendation it is subject to the clarification previously addressed. Rec: By Minute Motion: Action: Motion was made by Commissioner Turner and seconded by Commissioner Smith to forward the recommendation to the Finance Director to include the 2008-2009 Palm Desert Authority Operating, Capital, and Replacement Budgets in the City of Palm Desert's Comprehensive Plan for 2008-2009 to be presented to the Housing Authority Board for approval at a future meeting with the caveat that a clarification be provided to the Commission in May regarding "Other Rental Income". Administrative Plan A copy of the Administrative Plan and Reserve Plan was provided to the Commission for review. Leo Sullivan referenced the Administrative Plan and commented on how there was no wording with respect to the Housing Commission. Janet Moore stated that the Administrative Plan is policies and procedures that the management company is required to implement. She stated that a definition with regard to the Housing Commission may be added to the plan. Mr. Sullivan stated that the Administrative Plan lists the Housing Authority first and then the management company and felt that the Housing Commission should be listed in between. Justin McCarthy stated that the Housing Commission is an advisory body to the Housing Authority. The Housing Authority is the contracting entity which has the direct line of authority to RPM Company. He stated that wording may be added with the Commissioners' consent. 10 Housing Commission Minutes April 9, 2008 Mr. Sullivan stated he would like wording in the plan with regard to the Housing Commission since he felt they oversee what the management company does. Mrs. Moore noted that a statement will be added to the Administrative Plan with regard to the Housing Commission and their task of reviewing and advising the Housing Authority board on matters that come before the Housing Authority. Rec: By Minute Motion: Action: Motion was made by Commissioner Russo and seconded by Commissioner Smith to forward a recommendation to the Finance Director to include the Administrative Plan, with a statement in the policy and procedures with regard to the Housing Commission as the advisory board to the Housing Authority, in the City of Palm Desert's Comprehensive Plan for 2008-2009 to be presented to the Housing Authority board for approval at a future meeting; opposed Commissioner Turner. Jane Turner inquired on the legal status as a criterion. Mrs. Moore referenced Exhibit B Non-exclusive List of Required and Permissive Background Check Information by Type of Funding. She stated that the immigration status and/or residency listed have been recently challenged. Our legal counsel is currently reviewing the new law that passed with respect to immigration laws in the United States. She further noted that the challenge might not affect government properties but rather privately owned units. In the event there is a change in the law, this Exhibit may be amended. Reserve Plan Jane Turner asked if the $250 per unit seemed reasonable and if this was a first step to this new funding process. Janet Moore stated that the Replacement Reserve Fund will be established this year. The $250 is a base amount and may change if staff feels the amounts are too low based on our experience at the properties. In the past, with the consent of the Finance Director, the entire fund balance was reserved for continued operations and replacement items. The $250 per unit cost was determined based on a reserve study conducted several years ago but found the reserve to be significantly high at that time. Leo Sullivan asked if some of these items are part of the capital improvements already established for the properties. 11 Housing Commission Minutes April 9, 2008 Mrs. Moore explained the difference between replacement items and capital improvements. Replacements are components of the property that are on- going routines meaning every other year or so. Capital improvements are items that are periodically added or replaced at a property. She provided a brief explanation of the carports and how it was used as a capital improvement since that project is only done once every 10 years or so. However, the replacement of beams and posts will be made part of the replacement reserve fund. She noted that the intent of the reserve fund is strictly for replacements of certain items which are ongoing such as major appliances, light fixtures, etc. Upon question of bid advertising for appliances, Mrs. Moore indicated that appliances have become very inexpensive and have a short life span and therefore do not necessarily require a formal bid process. Currently we are replacing appliances through our repair and maintenance fund. Rec: By Minute Motion: Action: Motion was made by Commissioner Russo and seconded by Commissioner Smith to forward the recommendation to the Finance Director to include the Replacement Reserve Fund in the City of Palm Desert's Comprehensive Plan for 2008-2009 to be presented to the Housing Authority Board for approval at a future meeting. VII. CONTINUED BUSINESS VIII. INFORMATIONAL ITEMS A. HOUSING AUTHORITY NEWSLETTER (April) Newsletters were provided to the Commission for April. Janet Moore stated that the Newsletters are getting bigger and more expensive to mail since we have more properties. She asked the Commission if they preferred to pick up the newsletters at the meetings or mailed in their agenda packet. The Commission agreed that the newsletters will be provided at the meetings versus mailing with the agenda packets. B. AGENCY HOME IMPROVEMENT PROGRAM UPDATE An update on the Home Improvement Program (HIP) was provided to the Commission for review. 12 Housing Commission Minutes April 9, 2008 James Conway referenced the report and reported 27 applicants that are in various stages. Janet Moore stated that the manufactured home component of the program has become very popular. Seven new applications have been received from manufactured home parks that are not listed on the report. C. FALCON CREST Martin Alvarez stated that the Homeowners Association governed by homeowners is now in effect at Falcon Crest. Leo Sullivan asked if we had a reserve plan for Falcon Crest in the event that any issues come up. Janet Moore stated that there was a capital reserve established at the time each home was sold and that was considered the contribution. There is a one year warranty on customer service. As requested at the last meeting, a memo was provided to the Commission with the status of tenants purchasing at Falcon Crest. Jessica Gonzales summarized the memo and stated that there are a total of seven who qualified and closed escrow at Falcon Crest. IX. NEXT MEETING DATE — May 7, 2008 ADJOURNMENT With members of the Housing Commission concurrence Leo Sullivan, Housing Commission Chair, adjourned the meeting at 4:34 p.m. to May 7, 2008. Patty Leon, Recording Secretary 13 w 0 PALM DESERT REDEVELOPMENT AGENCY INTEROFFICE MEMORANDUM TO: RACHELLE KLASSEN, CITY CLERK FROM: PATTY LEON, RECORDING SECRETAR DATE: APRIL 10, 2008 SUBJECT: HOUSING COMMISSION MINUTES Attached is the following Housing Commission Meeting Minutes approved at the Housing Commission meeting held April 9, 2008: March 12, 2008 Please submit to the Housing Authority Board. Thank you. cc: Carlos L. Ortega, Executive Director R--ii..BY HOUSG AUTH ON --n' VERIFIED BY:_._" i Original on file with City Clerk's Office CALL TO ORDER CITY OF PALM DESERT HOUSING COMMISSION MINUTES March 12, 2008 Leo Sullivan, Housing Commission Chair, convened the meeting at 3:30 p.m. II. ROLL CALL Present: Donna Lewis Natalie Russo Verna Smith Leo Sullivan Jane Turner Also Present: Members Absent: Linda Ward Richard S. Kelly, Councilmember Liaison Dave Yrigoyen, Director of RedevelopmenUHousing Janet Moore, Director of Housing Martin Alvarez, Redevelopment Manager James Conway, Project Coordinator Jessica Gonzales, Management Analyst Patty Leon, Recording Secretary III. ORAL COMMUNICATIONS A correction was noted on the Agenda, Item VI New Business, Laguna Palms' recommendation to the Palm Desert Housing Authority. Newly appointed Housing Commissioner ponna Lewis was introduced. She provided a brief summary of her background. IV. CONSENT CALENDAR A. MINUTES of the Regular Housing Commission meeting of February 13, 2008. With a Motion made by Commissioner Smith and seconded by Commissioner Turner the minutes of February 13, 2008 were unanimously approved. u_.._ . _ , Housing Commission Minutes March 12, 2008 A correction was made to the last page of the minutes; Housing Commissioner Chair Leo Sullivan adjourned the meeting of February 13 h as opposed to Commissioner Smith. V. REPORTS AND REMARKS A. COMMISSION REPORTS Janet Moore reported that the Housing Adhoc Sub-committee has not met so there is no update at this time. She expects there will be a meeting in April. B. SUMMARY OF CITY COUNCIL AND REDEVELOPMENT AGENCY AGENDA ITEMS RELATED TO HOUSING, AND SUMMARY OF CITY COUNCIL, HOUSING AUTHORITY, AND REDEVELOPMENT AGENCY ACTIONS The summary was reviewed by the Commission. C. RPM MONTHLY STATUS REPORTS The Commission reviewed the Monthly Status Report for January. D. REPORT #1 - MONTHLY OCCUPANCY AND AVERAGE RENT STATEMENT The Commission reviewed the Monthly Occupancy and Average Rent Statement for January. Jane Turner inquired as to why there seemed to be a high number of moderate units shown on the report. Janet Moore stated that the moderate rents shown on the report are from existing tenants with higher incomes which consequently move to a higher category. She noted that in the event those units are re-rented, we make sure to fill the categories in the lower levels. Councilmember Kelly commented that people are succeeding and we should be pleased. Mrs. Moore stated that tenants should notify the leasing office of any changes to their income; however, most tenants wait until their annual recertification. 2 Housing Commission Minutes March 12, 2008 Leo Sullivan commented that the moderate numbers seemed like they are going up rather than going down and asked if it should be the other way around. Mrs. Moore stated that those numbers are not from new leases but from existing tenants who are actually making more money. Mr. Kelly stated that we do not want to ask tenants to leave if they are industrious and making more money. Mrs. Moore stated that several tenants that were in the moderate categories qualified to buy a home at Falcon Crest, which is the general idea. A report on the total number of families that moved to Falcon Crest from the Housing Authority properties will be provided to the Commission. E. REPORT #2 — MONTHLY NET OPERATING INCOME STATEMENTS The Commission reviewed the Monthly Net Operating Income Statements for January.. F. HOUSING AUTHORITY PROPERTIES UPDATE (JAMES) The update on the Housing Authority properties was reviewed by the Commission. Janet Moore thanked those commissioners who attended the grand re-opening of Laguna Palms. Councilmember Kelly commented on the Laguna Palms finished product and noted that everyone did a great job. NEW BUSINESS A. 14-UNIT APARTMENT COMPLEX- SAGECREST Janet Moore stated that the Agency is continuously looking at several different properties within Palm Desert to potentially acquire, as previously mentioned by Justin McCarthy. A 14-unit Apartment complex closed escrow at the end of February. The property is located on the corner of Santa Rosa, and San Pascual. It is a deteriorated property with 12 of the 14 units occupied. The property will be stabilized in the next 6 to 12 months and in the meantime health and safety issues will be addressed. 3 Housing Commission Minutes March 12, 2008 Jane Turner inquired on the recent property acquired with a house in the front and 3 units in the back. Mrs. Moore stated that that property is located adjacent to Pueblos Apartments and will become part of Pueblos. Monies were transferred from Country Village's budget, which will not be used, to Pueblos' budget during the mid-year to accommodate for those units. The 3 units located in the back are said to be identical to the one bedroom units at Laguna Palms, although they have not been upgraded. Leo Sullivan commented that he assumed that the budget for Sagecrest is an interim budget and suggested we stop at the health and safety issues without any further renovations to the units as previously done. Mrs. Moore stated that the idea is to address only those health and safety issues and stabilize the property as previously done at Country Village. The ArchitecYs findings during a study at Country Village determined that the property has drainage issues and grading problems which was taken into consideration when we were doing improvements at the site. She noted that Sagecrest has some very creative paneling on the patios that might require replacement in the meantime. Mr. Sullivan addressed Janet Moore and Dave Yrigoyen and asked if they felt comfortable with the budget. Dave Yrigoyen replied yes considering what we want to do with the property at this time. Mrs. Moore stated that if an issue comes up that was not anticipated then staff will come back to this Commissioh for further review. Mr. Sullivan expressed concern with the work done in the past of how we start the work and then almost rubber-stamp these things. He stated that rather than opening walls and finding that the wiring was done years ago which ultimately means the whole building has to be re-built and how we should try to avoid this process. He stated that the reason he was bringing this concern to staff was because it has happened in the past and would like to be assured that as a Commission they are made aware upfront rather than after the fact. Mr. Yrigoyen assured Mr. Sullivan that the process he mentioned will be avoided. He provided a brief explanation of how staff is being considerably careful with Country Village to ensure this process does not happen. Housing Commission Minutes March 12, 2008 Natalie Russo asked about the tenants' responses when a property is acquired by the Agency. Mrs. Moore stated that initially there is a mixed response. She noted that generally within the first 60 days of acquisition health and safety issues are addressed such as lighting, pool covering and/or issues tenants have been complaining about. Tenants will then notice a difference and comment on the changes but also worry about getting asked to move. Mrs. Moore also noted that Sagecrest has two addresses known as San Pascual and Santa Rosa Way. The legal address of Santa Rosa Way is correct however everyone knows the property by San Pascual such as the post office and utility companies. Welcome letters were sent to the tenants of Sagecrest to express appreciation for their tenancy as well as a list of the Housing Authority properties to show them who we are and what we do. Mrs. Moore noted that tenants are not asked to move out. She further stated that for the most part we do get quite a few move-outs when we acquire a property. Tenants tend to be more vocal with respect to other tenants since they feel we have better control of the property. She noted that within the first 90 days tenants are provided with information with respect to the affordable program as well as an explanation of background checks which includes criminal, credit, etc. Upon question, Mrs. Moore reported that the tenants at Sagecrest are on a month to month basis with the exception of two tenants. Tenants will be required to enter into a lease upon certification. Rec: By Minute Motion: Action: Motion was made by Commissioner Turner and seconded by Commissioner Smith to forward a recommendation to the Palm Desert Housing Authority Board to authorize the approval of the Fiscal Year 2007-2008 budget for the 14-unit apartment complex known as Sagecrest Apartments. 5 Housing Commission Minutes B. LAGUNA PALMS — CHANGE ORDER NO. 6 March 12, 2008 Martin Alvarez reviewed the staff report highlighting the close out items. Leo Sullivan asked about the 60 days to complete the items listed on the report. Mr. Alvarez stated that the 60 days is what was negotiated for the 6 month delay, but he anticipated that it would take several weeks to completely close out the punch list. Mr. Sullivan commended Mr. Alvarez on the staff report. He stated that the report was very thorough yet concise and thanked Mr. Alvarez. Rec: By Minute Motion: Action: Motion was made by Commissioner Smith and seconded by Commissioner Russo to forward a recommendation to the Palm Desert Housing Authority Board to approve Change Order No. 6 to Contract No. HA-25760 (Portrait Homes, Inc.) in the amount not to exceed $115,072.27 for site modifications and extended general conditions for the housing authority property known as Laguna Palms. VII. CONTINUED BUSINESS VIII. INFORMATIONAL ITEMS A. HOUSING AUTHORITY NEWSLETTER (March) Newsletters were reviewed by the Commission. B. AGENCY HOME IMPROVEMENT PROGRAM UPDATE An update on the Home Improvement Program (HIP) was provided to the Commission for review. James Conway referenced the report and reported 3 projects are in the process of nearing completion, and 4 notices to proceed have been issued. Upon question, Mr. _Conway stated that the shaded properties on the report have been completed and will be removed from the list at fiscal year end. Leo Sullivan inquired on the activity from mobilehome parks such as Palm Desert Greens due to the HIP article on the Brightside. Housing Commission Minutes March 12, 2008 Mr. Conway stated that 9 new applications were received from different mobilehome parks. Verna Smith mentioned that the HIP was published in the news bulletin at Palm Desert Greens. C. PHASE II 20-ACRE SITE UPDATE: Falcon Crest La Rocca Villas Martin Alvarez reported that Falcon Crest has one property pending the close of escrow; all site work has been completed. La Rocca Villas is complete and fully occupied with the exception of one unit that has a minor interior issue. Janet Moore reiterated that the Agency is continually looking at existing properties that may be available in the City as additional housing for our program. She noted that the Agency is currently looking at two properties. Leo Sullivan stated that he attended a meeting last week with regard to the objectives and plans for the City of Palm Desert, as discussed at the last Housing Commission meeting. Mrs. Moore stated that there were two different meetings last week with regard to the Housing Element (Stakeholders and a Workshop for the general public), of which Leo Sullivan attended one and Natalie Russo attended the other. The outcome of both meetings was the same with respect to moving forward with the objectives presented. She noted that most of the attendees agreed on the items that are considered for housing in terms of location and how it best serves near transportation, shopping, etc. Janet Moore asked the Commission if they would like to schedule a date for the tour of certain properties, as previously mentioned, or postpone to a later date. The Commission agreed to postpone the tour to the fall. IX. NEXT MEETING DATE — APRIL 9, 2008 ADJOURNMENT With members of the Housing Commission concurrence Leo Sullivan, Housing mission Chair, ad' urned the meeting at 4:04 p.m. Patty Leon, cording Secretary 7 PALM DESERT REDEVELOPMENT AGENCY INTEROFFICE MEMORANDUM TO: RACHELLE KLASSEN, CITY CLERK FROM: PATTY LEON, RECORDING SECRETARY DATE: MARCH 13, 2008 SUBJECT: HOUSING COMMISSION MINUTES Attached are the following Housing Commission Meeting Minutes approved at the Housing Commission meeting held March 12, 2008: February 13, 2008 Please submit to the Housing Authority Board. Thank you. t{2C tv c ' 1-' gY HOUSG AUTH "J- ory 3 B cc: Carlos L. Ortega, Executive Director VERIFIED BY: Original on file with City Clerk's Office U CITY OF PALM DESERT HOUSING COMMISSION MINUTES FEBRUARY 13, 2008 CALL TO ORDER Leo Sullivan, Housing Commission Chair, convened the meeting at 3:30 p.m. II. ROLL CALL Present: Jane Turner Natalie Russo Verna Smith Leo Sullivan Members Absent: Linda Ward Also Present: Richard S. Kelly, Councilmember Liaison Justin McCarthy, ACM for Redevelopment Dave Yrigoyen, Director of RedevelopmenUHousing Janet Moore, Director of Housing Martin Alvarez, Redevelopment Manager Jessica Gonzales, Management Analyst Patty Leon, Recording Secretary Guest(s): Teresa Vakili, RPM Company Ryan Stendell, Associate Planner III. ORAL COMMUNICATIONS Ryan Stendell was introduced to the Commission. Mr. Stendell was in attendance to discuss the Housing Element under Informational Items. IV. CONSENT CALENDAR Housing Commission Minutes February 13,2008 A. MINUTES of the Regular Housing Commission meeting of December 12, 2007 and January 9, 2008 With a Motion made by Commissioner Smith and seconded by Commissioner Turner the minutes of December 12, 2007, were unanimously approved. With a Motion made by Commissioner Turner and seconded by Commissioner Smith the minutes of January 9, 2008 were unanimously approved. A correction was made to page 9 of the minutes of January 9th to reflect the correct adjourned meeting date. V. REPORTS AND REMARKS A. COMMISSION REPORTS Janet Moore updated the Commission on Country Village with regard to the relocation plan. At the request of the City Attorney, the relocation plan was pulled from the City Council Agenda as well as the plans to demolish the apartments. They are currently off calendar until the City Attorney requests that they move forward. Mrs. Moore stated that staff was considering scheduling a meeting the first part of April to meet with the Adhoc sub-committee but that may depend on the City Attorney at this point. Staff will notify the sub-committee members of a date once confirmed. Martin Alvarez reported that a meeting took place on Saturday, February 9, 2008, with the Palm Desert Country Club Homeowners Association to discuss future plans for Country Village. A presentation was made regarding the identification of the site and the direction received from the Adhoc subcommittee and the City Council in relation to its future development. The relocation plan was explained as well as staffs recommendation to proceed with a demolition plan. It was explained that the idea is to build an affordable senior complex with a possible paramedic and fire station. The concept was said to be on hold until further direction. Also mentioned was Casey's negotiation to possibly acquire that portion of the site. Mr. Alvarez noted that the members of the Homeowners Association were receptive to the plans mentioned. Once a more defined site plan is confirmed, staff will present that information to the Palm Desert Country Club Homeowners Association at a future meeting. 2 Housing Commission Minutes February 13, 2008 Jane Turner asked if Country Village was part of Palm Desert Country Club Homeowners Association. Justin McCarthy stated that Country Village is not part of the Homeowners Association but since it is adjacent to Palm Desert Country Club it would serve as a gateway. Upon question of any objections from the Homeowners Association, Janet Moore reported that the only objection was for a multi-family complex but the HOA was in favor of the idea of a senior complex. B. SUMMARY OF CITY COUNCIL AND REDEVELOPMENT AGENCY AGENDA ITEMS RELATED TO HOUSING, AND SUMMARY OF CITY COUNCIL, HOUSING AUTHORITY, AND REDEVELOPMENT AGENCY ACTIONS The summary was reviewed by the Commission. C. RPM Monthly Status Reports The Commission reviewed the Monthly Status Report for December. Leo Sullivan inquired on the occupancy status for Palm Village Apartments. Teresa Vakili stated that the leasing office is having difficulties qualifying applicants. Mr. Sullivan inquired on the waiting list in place and asked if applicants were pre-qualified prior to the completion of the property. Ms. Vakili responded that applicants were pre-qualified to be placed on the waiting list but once they were contacted to verify income, credit, and criminal background checks most applicants did not qualify and were rejected. She reported that as of January there are a total of 25 occupants and 11 vacancies. She anticipates 100% occupancy by March. D. REPORT #1 - MONTHLY OCCUPANCY AND AVERAGE RENT STATEMENT The Commission reviewed the Monthly Occupancy and Average Rent Statement for December. 3 Housing Commission Minutes February 13, 2008 E. REPORT #2 — MONTHLY NET OPERATING INCOME STATEMENTS The Commission reviewed the Monthly Net Operating Income Statements for December. F. HOUSING AUTHORITY PROPERTIES UPDATE (JAMES) The update on the Housing Authority properties was reviewed by the Commission. Pictures of the ongoing construction at Laguna Palms were circulated. Leo Sullivan referenced the report and questioned the repairs to the damaged ceiling at a unit at Candlewood Apartments. Teresa Vakili responded that those damages were minor and required replacement of loose tiles that were broken due to the heavy rains. She noted that overall the properties did very well through the recent rains, with only minor repairs such as roof patches at Las Serenas and One Quail Place. Upon question, Martin Alvarez clarified why the sub-standard wall at Laguna Palms was demolished. He stated that a change order was brought forward to this Commission at the last meeting to address the condition of the existing easterly wall. The wall was built by the adjacent property's developer in conjunction with a sub-division to the east. The wall is non-compliant with standard codes and is a health and safety issue and therefore will be replaced. Natalie Russo questioned the removal of the master pins from all locks at La Rocca Villas. Teresa Vakili replied that once RPM Company takes over a property all locks are rekeyed and the developer's master pin is removed. Mr. Sullivan inquired on the incident that took place at One Quail Place and asked if the victim was a tenant. Janet Moore replied that the victim was not a tenant and the sheriff department has taken over the investigation. Mr. Sullivan questioned the replacement of two complete cable lines for two units at Palm Village Apartments and asked why it was not done originally. n Housing Commission Minutes February 13, 2008 Ms. Vakili stated that with any new construction there are replacements and corrections that need to be addressed after the property is complete. G. Report on Housing Production Needs by Category As a request from the last meeting, a report on the Housing Production Needs by Category was provided to the Commission for review. Janet Moore summarized the report. In efforts to accomplish the requirements listed on the report, Justin McCarthy also noted that the Planning Department will put a greater responsibility to developers with regard to the number of affordable units, noting that it would be more financially feasible way to produce units as opposed to building them. Leo Sullivan mentioned some of the issues with the slow market and asked what the City is looking at. Mr. McCarthy agreed that there has been some single-family developers that have vacated the market. He stated there are developers, who have come forvvard, that have shown interest in building inulti-family units that might work in this market. NEW BUSINESS A. CALIFORNIA VILLAS — PHASE B Martin Alvarez distributed a site map of California Villas' location. He reviewed the staff report, stating that two bids were received with the lowest bid from Doug Wall in the amount $3,137,505. The cost was said to be reasonable and within industry standards. Leo Sullivan asked if staff had researched Mr. Wall's background with respect to his construction projects and reported that Mr. Wall is currently in foreclosure on several properties with two local bank institutions. He expressed concern with the award of contract and requested that staff consider a stringent bond requirement. He noted that he personally knew of several properties that were taken back from a local bank due to Mr. Wall's performance. He further noted that he knows Mr. Wall is a good builder but strongly urged that we get a stringent performance bond; the best one we could find. Mr. Alvarez replied that staff would further review this matter and noted that we do have a standard construction bond that has to be met. N7 Housing Commission Minutes February 13, 2008 Justin McCarthy stated that Mr. Wall posted his bond as part of the bid process and advised that our standard bond requirement is for a complete construction. Mr. Sullivan asked if a more stringent type of bond would be considered since he felt that if Mr. Wall might try to take from our project to pay for his other unfinished projects. Mr. McCarthy stated the Mr. Wall provided a completion bond that is called into effect should he default. He noted that perFormance payments are predicated upon our acceptance of the work; therefore Mr. Wall would not receive any type of payment in advance during the construction process. In addition, there is construction management on site that will monitor and validate his payment submittals. He further stated that there are controlled mechanisms built into the bidding process as well as a retention portion of 10%. Natalie Russo asked if we had the ability to ask Mr. Wall of his financial situations. Mr. McCarthy stated that there are a number of protections that are part of the bidding process. The bid would have been rejected if a determination was made that Mr. Wall is not an acceptable bidder. He advised that the bond process is structured via State Law. Given that there was a variance in the cost between both bids submitted, staff verified each line item within Mr. Wall's bid and found it to be reasonable. Dave Yrigoyen agreed and stated that we have a stringent requirement with regard to perFormance bonds from the contractor. Mr. Wall is being hired as a contractor and not a developer and therefore he is putting his contractor's license on the line in order to accomplish this project. Upon question, Mr. Alvarez stated that one of the major differences verified in the bid amounts is that Mr. Wall is a local contractor who will use local sub- contractors. Portrait Homes proposed to use subcontractors based outside the area which can be significant in cost. He noted that Portrait Homes was the contractor for Laguna Palms and Phase A improvements at California Villas. Mr. Sullivan asked if there were any other bidders besides Portrait Homes. Mr. Alvarez replied that there was a lot of interest at the pre-bid meeting, however only two bids were received. Mr. Sullivan asked about Portrait Homes past experience with the Agency. Housing Commission Minutes February 13, 2008 Mr. Alvarez stated that to date Portrait Homes has completed work satisfactorily. Rec: By Minute Motion: Action: Motion was made by Commissioner Turner and seconded by Commissioner Smith to forward a recommendation to the Palm Desert Housing Authority Board to authorize award of contract no. HA-23650-C to Doug Wall Construction, Inc. (Bermuda Dunes, CA) in the amount of $3,137,505.00 to construct Phase B site renovations at California Villas VII. CONTINUED BUSINESS A. REVISED MID-YEAR 2007/2008 BUDGET ADJUSTMENT Janet Moore reviewed the revised appropriations operating budget provided to the Commission. She stated that the change was highlighted to show a 50,000 increase to Taos Palms Apartments. Several tenants moved out and/or asked to be transferred to Palm Village Apartments which presented the opportunity to renovate those units. Taos Palms was said to have some of the oldest interiors from most of our properties. Rec: By Minute Motion: Action: Motion was made by Commissioner Smith and seconded by Commissioner Russo to forward a recommendation to the Palm Desert Housing Authority Board to forward to the Finance Director the recommendation to request approval of the revised mid-year budget adjustment for Taos Palms Apartments. VIII. INFORMATIONAL ITEMS A. HOUSING ELEMENT Ryan Stendell provided an informational update on the Housing Element. He stated that the Planning Department is responsible for the General Plan and the Housing Element. The Housing Element will be a planning period from 2008 through 2014. He stated that there have been a significant amount of changes in the state law since the last planning period. The California Department of Housing and Community Development (HCD) is now requiring a detailed 7 Housing Commission Minutes February 13, 2008 analysis with respect to where housing units should go and the number of units that could reasonably go there. He stated that a contract has been awarded for a consultant to assist in this process. The first public outreach meeting is scheduled next week, notices were sent to developers, local Employment Development Departments (EDD), and county social services. Subsequently, a community outreach meeting will be scheduled to invite the general public via notice in the newspaper. Mr. Stendell stated that one minor concern to consider is that HCD stated that if we don't have the zoning for the required units, the Planning Department will have to rezone property. Mr. Stendell further noted that this will be a much more comprehensive element than the previous elements. Leo Sullivan stated that one of the projects on Gerald Ford converted from condos to apartments and asked if we got our share of units on that property. Janet Moore replied yes pursuant to the requirement on that property. Mr. Stendell stated that there is a condo conversion ordinance in place which restricts the ability to convert condos to apartments depending on the vacancy rate in the City. Mr. Sullivan asked if there was any land left to be able to accommodate our needs. Mr. Stendell stated that the consultants are in the process of working on this matter. Justin McCarthy asked if there has been precedent for a revision of the Regional Housing Needs Assessment (RHNA) numbers downward with respect to the market conditions we are experiencing now. Mr. Stendell stated that at a Coachella Valley Association of Governments CVAG) meeting, a representative from HCD stated no but that he would ask further questions regarding this issue. Richard Kelly inquired if anyone has been prosecuted for violating the RHNA. Mr. Stendell stated that if we do not have an element that is certified by HCD than we are technically running outside of state law. B. City of Palm Desert City Council, Redevelopment Agency, and Housing Authority Strategic Objectives 0 Housing Commission Minutes February 13, 2008 The Commission was provided with an informational packet regarding the Strategic Objectives for the City. Janet Moore stated that the City Council met with certain members of staff to determine strategic objectives for the City. It was explained that since Housing is already established as what we have to do, it was not made part of the goals listed and only those items that have not been established were made part of the list. Upon question, Justin McCarthy provided a brief update on the recommendations of the potential Desert Willow hotel. C. HOUSING AUTHORITY NEWSLETTER (February) Newsletters were reviewed by the Commission. D. AGENCY HOME IMPROVEMENT PROGRAM UPDATE An update on the Home Improvement Program (HIP) was provided to the Commission for review. Janet Moore stated that an article was published in the Brightside regarding the Home Improvement Program. The HIP will be published twice in the Brightside, once in the fall to focus on roofing issues and once in the spring to focus on AC issues. Mrs. Moore stated that the mobile home aspect that was adopted in July has been extremely popular. She noted that there have been quite a few applicants from mobile home parks. She mentioned the additional issues with respect to obtaining approvals from either the Homeowners Association and/or the different owners of the land. She referenced the report and stated that on the average we have completed two projects a month. E. Phase II 20-Acre Site Update: Falcon Crest La Rocca Villas Martin Alvarez summarized the update provided by Cathy Walker. Housing Commission Minutes February 13, 2008 Leo Sullivan asked on the number of self-help homes to which Mr. Alvarez responded 14. Janet Moore stated that the self-help lots will be built as part of the next RHNA cycle. A request for proposals will be prepared for this project. She stated that several non-profit organizations have indicated an interest but are concerned that they have to build all fourteen homes at once. Staff has not made a determination whether we would consider building either one or two at a time or all at once. Mrs. Moore stated that this project will probably be completed within the next three to four years. Upon question of the vacant lot located on EI Cortez, Mrs. Moore stated that the lot was donated to Habitat for Humanity. She explained some the difficulties Habitat is experiencing with respect to the construction aspect. The previous contractor who was also the developer for Big Horn is no longer assisting Habitat for Humanity. A copy of the letter to Community Dynamics from the U.S. Department of Housing and Urban Development was provided to the Commission for review. Mrs. Moore stated that Ruthann Moore, Economic Development Manager, attended the ceremony to accept the award on behalf of the City Council. At this time, Janet Moore reported that the Housing Tour has been canceled. A pre-opening of Laguna Palms has been scheduled for March 7, 2008 at 10:00 a.m. instead of the tour. As an alternative to the annual tour of all the properties, staff is proposing an informal visit to a few properties such as the new complex recently acquired, revisit the community room at Catalina Gardens, as well as a renovated unit at Taos Palms. The tour is expected to take approximately one hour; a date has not been determined. Mrs. Moore asked if any of the Commissioners were interested in revisiting any of the other properties to let her know. IX. NEXT MEETING DATE - MARCH 12, 2008 ADJOURNMENT With members of the Housing Commission concurrence Leo Sullivan, Housing Commission Chair, adjourned the meeting at 4:30 p.m. to March 12, 2008. Patty Leon, Recording Secretary 10 a3 $3 PALM DESERT REDEVELOPMENT AGENCY INTEROFFICE MEMORANDUM TO: RACHELLE KLASSEN, CITY CLERK ` FROM: PATTY LEON, RECORDING SECRETARY DATE: FEBRUARY 14, 2008 SUBJECT: HOUSING COMMISSION MINUTES Attached are the following Housing Commission Meeting Minutes approved atthe Housing Commission meeting held February 13, 2008: December 12, 2007 R January 9, 2008 BY HOUSG AUTI--0 Please submit to the Housing Authority Board. N ? . lly'.1?) Thank you. VERIFIED BY: K n j J Or ginai on file with City Clork's Office cc: Carlos L. Ortega, Executive Director CITY OF PALM DESERT HOUSING COMMISSION MINUTES DECEMBER 12, 2007 CALL TO ORDER Jane Turner, Housing Commission Chair, convened the meeting at 3:30 p.m. II. ROLL CALL Present: Jane Turner Leo Sullivan Verna Smith Also Present: Members Absent: Linda Ward Natalie Russo Carlos Ortega, Executive Director Justin McCarthy, ACM for Redevelopment Dave Yrigoyen, Director of RedevelopmenUHousing Janet Moore, Director of Housing Martin Alvarez, Redevelopment Manager Jessica Gonzales, Management Analyst James Conway, Project Coordinator Patty Leon, Recording Secretary Guest(s): Teresa Vakili, RPM Company ORAL COMMUNICATIONS CONSENT CALENDAR MINUTES of the Regular Housing Commission meeting of November 7, 2007 Housing Commission Minutes DECEMBER 12, 2007 With a Motion made by Commissioner Smith and seconded by Commissioner Sullivan, the November minutes were unanimously approved. Janet Moore updated the Commission on the status of commission appointments from the City Council as commented in the minutes by Leo Sullivan. She noted that the City Council meeting scheduled for tomorrow has an item under informational reports. The City Clerk is requesting information from the Council with respect to their schedules for interviews and subsequent appointments. Mr. Sullivan's concern has been communicated again regarding the Housing Commission's vacancy. V. REPORTS AND REMARKS A. COMMISSION REPORTS B. SUMMARY OF CITY COUNCIL AND REDEVELOPMENT AGENCY AGENDA ITEMS RELATED TO HOUSING, AND SUMMARY OF CITY COUNCIL, HOUSING AUTHORITY, AND REDEVELOPMENT AGENCY ACTIONS The memo was replaced with a revised memo due to a correction made to the dollar amount on item 2. C. RPM Monthly Status Reports The Commission reviewed the Monthly Status Report for October. Upon question of La Rocca Villas occupancy, Teresa Vakili reported that 12 units are currently occupied and 15 pre-leased. With regard to Palm Village Apartments, Ms. Vakili reported that seven units were occupied in November and 25 applicants are currently being processed. D. REPORT #1 - MONTHLY OCCUPANCY AND AVERAGE RENT STATEMENT The Commission reviewed the Monthly Occupancy and Average Rent Statement for October. E. REPORT #2 — MONTHLY NET OPERATING INCOME STATEMENTS 2 G:\RDA Patty Leon\Housing CommissionUAinutes 2007\12-12-07.doc Housing Commission Minutes DECEMBER 12, 2007 The Commission reviewed the Monthly Net Operating Income Statements for October. F. HOUSING AUTHORITY PROPERTIES UPDATE (JAMES) An update on the Housing Authority properties was provided to the Commission. James Conway reviewed the update and distributed pictures of the ongoing construction at Laguna Palms. Mr. Conway indicated that staff is recommending that the flooring be completed by the existing contractor as opposed to RPM Company. This will alleviate any concerns over the warranty issues on items such as appliances since the contractor will be responsible for both installations. A change order will be presented at an upcoming meeting. Martin Alvarez stated that at the last meeting staff mentioned the issues of the easterly wall at Laguna Palms and explained that the investigation is continuing on whether to correct it or replace it. Once an analysis is complete, a staff report will be provided to this Commission for review. At this time, a Relocation Plan was distributed to the Commission for review. Janet Moore stated that the Relocation Plan is available for public viewing as of yesterday. The plan provides a description of the relocation benefits available to the tenants currently living there. Estimated letters of eligibility are anticipated to be mailed early January. Once the tenants receive their letters, they will be given a 90 day notice to move out which may result that tenants may possibly still be there in May. The Plan is scheduled for review and approval by the City Council in January. Jane Turner asked if staff anticipated any problems with the relocation plan to which Mrs. Moore responded no. Martin Alvarez stated that staff is making every effort to contact those tenants that have moved out and advise them of their benefits, in accordance with the law. In the event any former residents come forward with regard to their benefits, they will be identified and an evaluation will be made with regard to their eligibility. 3 G:\RDA\Patty Leon\Housing CommissionWlinute5 2007\12-12-07.doc Housing Commission Minutes NEW BUSINESS A. ELECTION OF OFFICERS DECEMBER 12, 2007 Janet Moore reported that Commissioner Linda Ward, who was not present at the meeting due to health reasons, had commented she did not want to be nominated for any of the positions open. With members of the Commission in concurrence, Leo Sullivan was nominated as Chairman and Verna Smith as Vice Chairman; both commissioners accepted the office to which they were elected. Rec: By Minute Motion: Action: Motion was made by Commissioner Smith and seconded by Commissioner Sullivan to elect Leo Sullivan as Chair and Verna Smith as Vice Chair commencing January 2008 for a term of one year. B. 2008 CONSULTANTS MASTER LIST Rec: By Minute Motion: Action: Motion was made by Commissioner Sullivan and seconded by Commissioner Smith to forward a recommendation to the Palm Desert Housing Authority Board to approve the 2008 Master Consultants List of qualified professional services consultants; authorize the Executive Director to execute agreements and contract amendments with named qualified consultants for services valued at less than $25,000; and grant approval to stated selection process as provided for by section 3.32.090 of the municipal code, for professional services consultants performing work of limited scope during the 2008 calendar year. Leo Sullivan asked on the changes compared to the previous list. Martin Alvarez reported that of the 13 applications submitted12 consultants were added to various categories of the list. Janet Moore stated that the list was compiled by all City departments that utilize such services. 4 G:\RDA Patty Leon\Housing CommissionUvlinutes 2007\12-12-07.doc Housing Commission Minutes DECEMBER 12, 2007 Verna Smith requested clarification with regard to the bid process and asked if it was necessary to request three proposals from three different companies or is staff able to negotiate directly with a particular consultant of interest. Mr. Alvarez stated that staff is able to negotiate directly with a pre-qualified professional consultant. In the event there is a problem with a particular consultant, they will be removed from the list. Leo Sullivan asked if this request was being reviewed and approved by every committee or just the Housing Commission. Mrs. Moore responded that the Housing Commission is responsible to review all matters that go before the Authority Board; other Committees and Commissions do not have that responsibility. VII. CONTINUED BUSINESS VIII. INFORMATIONAL ITEMS A. HOUSING AUTHORITY NEWSLETTER (December) Newsletters were reviewed by the Commission. B. DESERT SUN NEWS ARTICLE "HELPING SENIORS HOP ONLINE" A Desert Sun news article was provided to the Commission for review. Janet Moore stated that the Desert Sun published a news article with regard to Desert Samaritans outreach for the elderly. She referenced the picture on the article of a resident of Las Serenas Apartments. Desert Samaritans also published an article with regard to their Grocery Delivery Program in their handbook; available to the Commission for review. She mentioned that Linda Ward has confirmed that this is a wonderful service offered to the residents at Las Serenas in terms of getting their grocery shopping done. She also mentioned that Desert Samaritans coordinators will come out and assist tenants with the program. Jane Turner asked if computers are available to residents at Las Serenas and if internet services are offered. Teresa Vakili responded that both Las Serenas and Catalina Gardens community rooms have computers available to residents with internet service available. 5 G:\RDA\Patty Leon\Housing CommissionVNinutes 2007\72-12-O7.doc Housing Commission Minutes DECEMBER 12, 2007 Mrs. Moore stated that Michael Bernard, who is the Director of Desert Samaritans, had contacted her with regard to providing assistance to the elderly residents and mentioned the grocery delivery program. He was directed to survey the tenants directly to see if there was any interest. As far as the costs associated with the delivery, there is no cost to the residents. C. AGENCY HOME IMPROVEMENT PROGRAM UPDATE An update on the Home Improvement Program (HIP) was provided to the Commission for review. James Conway reviewed the update, stating that 5 properties have been completed and will be noted as complete on the report. He mentioned that there were quite a few responses to the article published in the Brightside. Verna Smith commented that she had provided a copy of the Brightside to the Assistant General Manager at Palm Desert Greens since she felt that some of the mobile homes are in need of assistance. It was explained that several of the applications received came from residents of Palm Desert Greens. D. Phase II 20-Acre Site Update: Falcon Crest La Rocca Villas Martin Alvarez summarized the update provided by Cathy Walker. Upon question, he described the passive park to be an open area with no physical structures or activity. Verna Smith commented there was a nice press release in the Desert Sun with regard to La Rocca Villas grand opening ceremony. At this time, James Conway explained the pictures distributed earlier of Laguna Palms. He stated that there are 48 units within the project consisting of 28 two- bedrooms, 16 one-bedroom and 4 studios. He anticipated completion of the project at the end of January. IX. NEXT MEETING DATE — January 9, 2008 6 G\RDA\Patty Leon\Housing CommissionWlinutes 2007\72-12-07.doc Housing Commission Minutes DECEMBER 12, 2007 A. SCHEDULE OF HOUSING COMMISSION MEETING DATES FOR 2008 A memo was provided to the Commission listing the Housing Commission meetings scheduled for 2008. Janet Moore stated that the meeting of May 14 occurs after the regularly scheduled City Council meeting and in order to accommodate actions required by the Commission on the Housing Authority agenda staff is requesting that the Commission adjourn the April meeting to May 7`n Motion was made by Commissioner Sullivan and seconded by Commissioner Smith to approve the Housing Commission meeting dates as presented in the memo and move the meeting of May 14 to May 7`h. Mrs. Moore asked the Commission to save the date of March 7, 2008 as a tentative date for the Housing tour. ADJOURNMENT With members of the Housing Commission concurrence Jane Turner, Housing C ssion Chair, djo r meeting at 3:50 p.m. to January 9, 2008. n_,.L, I,L.C,t/ Patty Leon, Recdrding Secretary 7 G:\RDA\Patty Leon\Housing CommissionVvlinutes 2007\72-12-07 doc CITY OF PALM DESERT HOUSING COMMISSION MINUTES JANUARY 9, 2008 I. CALL TO ORDER Verna Smith, Housing Commission Vice-Chair, convened the meeting at 3:30 p. m. II. ROLL CALL Present: Jane Turner Natalie Russo Verna Smith Linda Ward Also Present: Justin McCarthy, ACM for Redevelopment Janet Moore, Director of Housing Martin Alvarez, Redevelopment Manager Jessica Gonzales, Management Analyst James Conway, Project Coordinator Patty Leon, Recording Secretary Guest(s): Teresa Vakili, RPM Company III. ORAL COMMUNICATIONS IV. CONSENT CALENDAR Members Absent: Leo Sullivan A. MINUTES of the Regular Housing Commission meeting of December 12, 2007 Upon question of a quorum, Janet Moore explained that the Commission could either postpone the minutes or take action with the two members that create the quorum today. Housing Commission Minutes January 9, 2008 With the Commission's concurrence, the minutes of December 12, 2007 were postponed to the next Housing Commission meeting. V. REPORTS AND REMARKS A. COMMISSION REPORTS Janet Moore stated that at the last meeting the Commission was provided with an informational packet with regard to the relocation plan. The plan has a 30- day review process expiring January 12". The City Council is scheduled to review the plan later this month. Once approved, the notices of eligibility will be prepared and provided to the current tenants. Tenants will have 90 days to move once they receive their notice of eligibility. Verna Smith asked if the Adhoc Sub-committee would meet again soon. Martin Alvarez stated that Interactive Design is in process of finalizing the design concept to present to staff. Once the design is reviewed by staff, it will be presented to the Adhoc sub-committee for further review and discussion. His estimation is sometime in April before an Adhoc meeting would take place. B. SUMMARY OF CITY COUNCIL AND REDEVELOPMENT AGENCY AGENDA ITEMS RELATED TO HOUSING, AND SUMMARY OF CITY COUNCIL, HOUSING AUTHORITY, AND REDEVELOPMENT AGENCY ACTIONS The summary was reviewed by the Commission. C. RPM Monthly Status Reports The Commission reviewed the Monthly Status Report for November. Janet Moore stated that future Monthly Status Reports will show an addition to Pueblo's complex. The Agency recently acquired a four-unit complex adjacent to Pueblos Apartments. The four-unit complex consists of three 1-bedroom units in the back and a one 3-bedroom unit in the front. 2 G:RDA\Patty Leon\Housing CommissionWlinutes 2008N-9-OB-DRAFT.doc Housing Commission Minutes January 9, 2008 D. REPORT #1 - MONTHLY OCCUPANCY AND AVERAGE RENT STATEMENT The Commission reviewed the Monthly Occupancy and Average Rent Statement for November. Jane Turner asked if an update on the Stipulation would be provided to the Commission. Janet Moore stated that Housing has met the stipulated requirements as previously presented to this Commission. Staff is currently working on the new Regional Housing Needs Assessment (RHNA) numbers required which have to be produced by 2014. She noted that an update on the RHNA requirements will be provided to the Commission at an upcoming meeting. E. REPORT #2 — MONTHLY NET OPERATING INCOME STATEMENTS The Commission reviewed the Monthly Net Operating Income Statements for November. F. HOUSING AUTHORITY PROPERTIES UPDATE (JAMES) An update on the Housing Authority properties was provided to the Commission. James Conway reviewed the update. He stated that Phase B of California Villas which is the site improvements that includes ADA walkways, new maintenance facility, new entry to the community leasing office, pool deck, etc., is currently out to bid and anticipates an open bid date early February. He also mentioned that the existing contractor for Laguna Palms is requesting extended services to the contract; a possible change order will be brought to this Commission for consideration. 3 G:\RDA\Patty Leon\Housing CommissionVNinutes 200811-9-08-DRAFT.doc Housing Commission Minutes NEW BUSINESS A. LAGUNA PALMS — CHANGE ORDER NO. 5 January 9, 2008 Martin Alvarez reviewed the staff report, highlighting the two major components of the change order such as the perimeter wall and the flooring installations. Verna Smith questioned if this was the last change order for Laguna Palms. Mr. Alvarez stated that there might be some close up items that may have to be addressed. He reiterated Mr. Conway's comment with regard to the contractor requesting consideration for some of the delay periods, general conditions overhead, and bond and insurance money that he is required to complete the project, above what the original completion date was. Staff is currently negotiating his request. Mrs. Smith asked about a tentative completion date of the project; Mr. Alvarez replied early February. Natalie Russo questioned if the flooring had already received approval. Janet Moore responded that originally the idea was to have RPM Company coordinate the installation of the flooring as part of their contract and budget. However, the decision was made to contract Portrait Homes to avoid any warranty issues. This cost was not previously added to the budget. Rec: By Minute Motion: Action: Motion was made by Commissioner Turner and seconded by Commissioner Ward to fonvard a recommendation to the Palm Desert Housing Authority Board to approve Change Order No. 5 to Contract No. HA 25760 (Portrait Homes, Inc.) in the cumulative amount of $144,699.98 for block wall modifications, site/drainage improvements, and the addition of flooring scope for the Housing Authority Property known as Laguna Palms Apartments. B. LAGUNA PALMS—AMENDMENT NO. 3 Martin Alvarez reviewed the staff report. Natalie Russo questioned the amount requested of $35,575.00 and asked if it was considered a reasonable cost. 4 G:\RDA\Patty LeonWousing Commission\Minutes 2008\1-9•OS-DRAFT.doc Housing Commission Minutes January 9, 2008 James Conway stated that Prest Vuksic expected to be able to complete the project within their original contract. However, due to delays, Prest Vuksic was not able to do that and submitted a change order which staff negotiated. Total architectural fees were considered to be within industry standards. Mr. Alvarez also mentioned that Prest Vuksic provided additional information on the hours spent on specific items related to unforeseen items. Justin McCarthy commented that there is a great deal of negotiation with regard to change orders. Mr. Conway referenced the Unit Cost Comparison report attached to staff report Change Order No. 5. Rec: By Minute Motion: Action: Motion was made by Commissioner Verna and seconded by Commissioner Russo to forward a recommendation to the Palm Desert Housing Authority Board to approve Amendment No. 3 to Prest Vuksic, Inc. Contract No. HA 231010-A for additional architectural design and construction administration services for Laguna Palms Apartments. C. HOUSING COOPERATION Verna Smith requested an explanation on the difference between the Palm Desert Redevelopment Agency and the Housing Authority. Janet Moore stated that both the Redevelopment Agency and the Housing Authority are separate and distinct public entities. The Redevelopment Agency was created and established in order to cure blight in the City. Within that redevelopment area/project a portion includes affordable housing. The Redevelopment Agency dedicates 20% set-aside to affordable housing. The Housing Authority was created to operate the 725 affordable units purchased from the County of Riverside; to which we have added 375 for a total of 1100. The Redevelopment Agency gives the power of operation to the Housing Authority. The Housing Commission was tasked with reviewing and advising the Housing Authority Board on issues that would come before the Housing Authority Board which is typically the operation of 1100 units. Those 1100 units are owned by the Redevelopment Agency and operated by the Housing Authority. 5 G.\RDA\Patty Leon\Housing CommissionVNinutes 2008\7-9-OB-DRAFT.doc Housing Commission Minutes January 9, 2008 Janet Moore reviewed the staff report, stating that this agreement amends the previous agreement to reflect the current properties owned as well as the renovation projects currently underway. Additional wording was added in the event properties are acquired that we will be able to continue that cooperation and utilize those certain powers to renovate, reconstruct or repair properties in need. Rec: By Minute Motion: Action: Motion was made by Commissioner Russo and seconded by Commissioner Verna to forward a recommendation to the Palm Desert Housing Authority Board to approve an Amended and Restated Housing Cooperation Agreement in order to plan, undertake, construct or operate Housing projects. D. MID-YEAR 2007/2008 BUDGET ADJUSTMENT Janet Moore reviewed the summary provided by Veronica Tapia, stating that the net effect of the revised budget is zero. She provided an explanation on the reallocation of funding sources and staffing of properties. She mentioned that some of the property managers are assigned to manage several different properties; however, since Country Village will eventually go away those managers will be reallocated to other properties. Additionally, staff is requesting to reduce revenues at the properties related to renovations or construction work. Rec: By Minute Motion: Action: Motion was made by Commissioner Turner and seconded by Commissioner Ward to forward a recommendation to the Palm Desert Housing Authority Board to forward to the Finance Director the recommendation to request approval to appropriate funds for the mid-year budget adjustments for the Housing Authority properties. VII. CONTINUED BUSINESS VIII. INFORMATIONAL ITEMS 6 G.\RDA\Patty Leon\Housing Commission\Minutes 2008\i-9-08-DRAFT doc Housing Commission Minutes A. HOUSING AUTHORITY NEWSLETTER (January) Newsletters were reviewed by the Commission. January 9, 2008 Linda Ward asked if the newsletter for Las Serenas and La Rocca Villas should be distinguished between both properties. Teresa Vakili stated that the property manager has notified the tenants at La Rocca Villas of special events taking place at Las Serenas as their participation is welcome. Ms. Ward asked about transportation between La Rocca Villas and Las Serenas. Mrs. Vakili stated that RPM staff does not have the ability to provide transportation. Ms. Ward questioned if this issue should be addressed. Justin McCarthy stated that there are public transportation services provided such as "dial a ride" for these situations. Mrs. Ward commented on a conversation she had with someone interested in applying for La Rocca Villas but had no means of transportation to that property from Las Serenas. Janet Moore stated that the property managers are meeting interested applicants at La Rocca Villas as opposed to meeting at the office located at Las Serenas. Upon question, Teresa Vakili stated that there are currently 16 occupied and 19 pre-leased at La Rocca Villas. B. AGENCY HOME IMPROVEMENT PROGRAM UPDATE An update on the Home Improvement Program (HIP) was provided to the Commission for review. James Conway reviewed the update, stating that there are several new applications in process. 7 G:\RDA\Patty Leon\Housing Commission\Minutes 2008\i-9-08-DRAFT.doc Housing Commission Minutes January 9, 2008 Janet Moore commented on the applications received from residents of manufactured homes. She mentioned some delays with respect to homes permanently affixed but do not own the land. She noted that if the property owner is someone else or managed by a homeowners association it may hold up the approval process since a few extra steps are necessary. C. Phase II 20-Acre Site Update: Falcon Crest La Rocca Villas Martin Alvarez summarized the update provided by Cathy Walker. He noted that as part of the contract with the developer for Falcon Crest, the developer is required to be available for the next three months after the completion of the project in the event there are any warranty issues or any punch list items that may come up. The developer will be available via a trailer on site. Linda Ward inquired on the appearance of the self-help lots and asked if those would be a Habitat type. Janet Moore stated that further discussion will take place with regard to the construction of those houses in a self-help category, and whether the project will be coordinated with either Habitat for Humanity, Rancho Housing Alliance, or Housing Coalition, or a joint venture depending on who provides the best opportunity. Justin McCarthy reported that a few months ago staff brought to the attention of this Commission that the City Council authorized staff to look at a property located on Santa Rosa. Staff negotiated that property and was given authorization from the Council to consummate the transaction. If accepted, staff will be bringing back 14 units. A decision has not been determined as to the disposition of that property in terms of rehabilitation. Mrs. Moore commented on a recent incident at One Quail Place. She stated that the Sheriff Department is conducting an investigation at that site. News channels provided feedback from residents who were very positive concerning the circumstances. She thanked RPM Company who was available to answer any questions with regard to the incident. At this time, Janet Moore reminded the Housing Commission of the tentative 8 G:\RDA Patty Leon\Housing CommissionVvlinutes 2008\7-9-08-DRAFT.doc Housing Commission Minutes tour date of March 7, 2008. January 9, 2008 Mrs. Moore reported that Community Dynamics received the "HUD Secretaries Award of Excellence" for Falcon Crest. A copy of the letter regarding the award wiil be provided to the Commission for review. IX. NEXT MEETING DATE - FEBRUARY 13, 2008 ADJOURNMENT With members of the Housing Commission concurrence Verna Smith, Housing Com issio hai , a journed the meeting at 4:10 p.m. to February 13, 2008. J Patty Leon, Recoriiing Secretary G.\RDA\Patty Leon\Housing CommissionVvlinutes 2008\7-9-08.doc PALM DESERT REDEVELOPMENT AGENCY INTEROFFICE MEMORANDUM TO: RACHELLE KLASSEN, CITY CLERK FROM: PATTY LEON, RECORDING SECRETAR DATE: DECEMBER 13, 2007 SUBJECT: HOUSING COMMISSION MINUTES Attached is the following Housing Commission Meeting Minutes approved at the Housing Commission meeting held November 7, 2007: November 7, 2007 • e c Please submit to the Housing Authority Board. ( gy HOUSG AUTH — Thank you. ON I - IO O VERIFIED BY: l`7 Original on file with City Clerk's Office U1 i 0 lJ cc: Carlos L. Ortega, Executive Director CITY OF PALM DESERT HOUSING COMMISSION MINUTES NOVEMBER 7, 2007 I. CALL TO ORDER Chairman Jane Turner convened the meeting at 3:30 p.m. II. ROLL CALL Present: Jane Turner Leo Sullivan Natalie Russo Linda Ward Verna Smith Also Present: Justin McCarthy, ACM for Redevelopment Dave Yrigoyen, Director of Redevelopment Janet Moore, Director of Housing Martin Alvarez, Redevelopment Manager Jessica Gonzales, Management Analyst James Conway, Project Coordinator Patty Leon, Recording Secretary Guest(s): Bob Such, Potential Housing Commissioner III. ORAL COMMUNICATIONS IV. CONSENT CALENDAR Members Absent: A. MINUTES of the Regular Housing Commission meeting of October 10, 2007 Housing Commission Minutes NOVEMBER 7. 2007 With a Motion made by Commissioner Sullivan and seconded by Commissioner Smith, the minutes were unanimously approved. V. REPORTS AND REMARKS A. Commission Reports B. RPM Monthly Status Reports The Commission reviewed the Monthly Status Report for September. Leo Sultivan asked on a time frame of when the properties under construction would be occupied. Janet Moore replied that Laguna Palms will probably take the longest to occupy, with the exception of the remaining 21-units at California Villas, but anticipated full occupancy by midyear next year. Country Village is anticipated that a best case scenario would be a five-year project. The project will include relocation, engineering for the entire site, design, and construction. She noted that a fire station will also be constructed on the site as a cooperative project with the County, which often have different time-lines than the City. Mr. Sullivan asked if the fire station can be separately constructed to avoid a delay with the construction of the apartment complex. Mrs. Moore replied yes, however we will have to sub-divide that portion of the site which will require that the County provides for and ensures all the specifications are adequate for their equipment. She explained some of the items to consider such as the entrance to the fire station, turn-a-rounds, direction of bays, whether or not iYs appropriate to share a drive-way which might require a preliminary design with regard to our property, and still keeping within their radiuses. Once a decision is made on how much land they will need, the Agency will be able to move forvvard. The City will own the land where the fire station will be built. Justin McCarthy stated that there is a possibility that the Agency may actually build the fire station on behalf of the County. C. REPORT #1 - MONTHLY OCCUPANCY AND AVERAGE RENT STATEMENT 2 G:\RDA1Patty leon\Housing Commission\Minutes 2007\11-7-07.doc Housing Commission Minutes NOVEMBER 7, 2007 The Commission reviewed the Monthly Occupancy and Average Rent Statement for September. D. REPORT #2 — MONTHLY NET OPERATING INCOME STATEMENTS The Commission reviewed the Monthly Net Operating Income Statements for September. Jane Turner asked for clarification on the negative figures under Net Operating Income Per Occupied Unit. Janet Moore stated that there are reserves available in the Housing Authority set aside funds from previous years. The properties currently under construction are being funded by a replacement reserve fund set aside for long term projects. In the event those reserves are exhausted we then use Housing's 20% set-aside. Ms. Turner inquired if the properties were ever going to break even, considering the restricting of the rent schedule. Justin McCarthy stated that the only way we could break even was to build up our inventory in excess of what is required for low and very low and start renting units at market or moderate. However, the Authority is required by a court mandated order to provide affordable rents and therefore it is typical and not expected for the properties to be subsidized on an ongoing basis. E. HOUSING AUTHORITY PROPERTIES UPDATE (JAMES) An update on the Housing Authority properties was provided to the Commission. James Conway reviewed the update and distributed pictures of the ongoing construction at Laguna Palms. Verna Smith asked if the work being requested in the change orders for discussion under New Business had already started. Mr. Conway replied no since the staff reports are awaiting approval from the City Council, contingent upon the Commission's recommendation. Leo Sullivan stated that even though the staff reports are on the City Council's agenda for tomorrow what would happen if the Commission rejected the recommendations. 3 G:\RDA\Patty Leon\Housing CommissionVNinutes 2007\11-7-07.doc Housing Commission Minutes NOVEMBER 7, 2007 Justin McCarthy replied that staff would convey the Commission's decision to the Council and ask for direction. Mr. Sullivan inquired on the flooring change out of the laundry room at Las Serenas. Mr. Conway replied that it has been approximately four years since the flooring has been upgraded. Due to wear and tear, proposals are being requested at this time to review pricing on whether or not a decision can be made to replace the flooring. Janet Moore stated that a schedule is maintained on items that need to be upgraded from repetitive use at the rental properties. She noted that staff is trying to be proactive and monitor the wear and tear of these items before there is a trip hazard or an issue that would cause concern. NEW BUSINESS A. Laguna Palms — Change Order No. 4 Rec: By Minute Motion: Action: Motion was made by Commissioner Sullivan and seconded by Commissioner Smith to forward a recommendation to the Palm Desert Housing Authority Board to approve Change Order No. 4 to Contract No. HA 25760 (Portrait Homes, Inc.) in the amount of 115,774.31 for building, plumbing, and miscellaneous rehabilitation for the Housing Authority property known as Laguna Palms. Martin Alvarez reviewed the staff report highlighting the major items of modification. He displayed a rendering of Laguna Palms and depicted the improvements recommended on the south perimeter wall. He stated that a credit was received as part of Change Order No. 1 to build a new block wall; however, a new scope of work was prepared in the amount of $68,607 that will incorporate lower planter walls and a new system called a 3D panel which is a light weight foam chalk that will allow the height to be increased without building a brand new wall. Also mentioned were the improvements and upgrades to the existing pool, sidewalks, and counter tops. 4 G\RDA\Patty Leon\Housing Commission\Minute5 2007\11-7-07.doc Housing Commission Minutes NOVEMBER 7. 2007 Upon question, it was noted that the budget would not be increased. A correction was made to the third page of the staff report with regard to the height of the wall to be 180 lineal feet. Commission expressed that they appreciated the Unit Cost Comparison Report provided as part of the staff report. Mr. Alvarez informed the Commission of the structural issues with the 6 foot block wall at the easterly boundary of Laguna Palms property, built as part of the adjacent property. The wall was visually inspected and it appears that there is some instability in the way it was constructed. The wall slumps down and the cells that allow for the steel to come up and down are not fully encased with concrete. He noted that he did not feel comfortable with the conditions of the wall. An investigation is taking place with regard to the cost of having the existing contractor either provide improvements based on structural engineer recommendations or redo the wall to eliminate the safety issues. Leo Sullivan asked on the depth of the footings. Mr. Alvarez stated that it was built to current code approximately 13 years ago. The plan is to have a structural engineer analyze the footings and the conditions of the construction. Based on the results, staff will take the best approach on whether to replace or retrofit the wall. It was noted that this project would be completely outside of the existing contract. Suggestions were made to possibly use the existing contractor since he is currently working on the site. He mentioned that the west wall is brand new. Janet Moore referenced the tot lot illustrated on the rendering for Laguna Palms and stated that the tot lot is not included in the scope of work with the existing contractor. The playground equipment has to have the appropriate fall zones and flooring recommendations, etc. Staff will contact the Parks and Rec. Department and utilize their resources with respect to the bidding process when we decide to proceed. B. Laguna Palms—Amendment No. 1 Rec: By Minute Motion: Action: Motion was made by Commissioner Smith and seconded by Commissioner Ward to forward a recommendation to the Palm Desert Housing Authority Board to approve Contract Amendment No. 1 in the amount of $34,855.00 to Vanir Construction Management, Inc., (Contract No. HA 25760A) for continued 5 G:\RDA\Patty Leon\Housing CommissionVvlinutes 2007\11-7-07.doc Housing Commission Minutes NOVEMBER 7, 2007 construction management services for the Laguna Palms renovation project. Martin reviewed the staff report. He stated that the amendment to Vanir Construction ManagemenYs Contract will allow Vanir to continue through the projecYs closeout due to the recent change orders encountered. The structural issue on the two story building, which has caused a delay, is expected to be completed by the end of January. VII. CONTINUED BUSINESS VIII. INFORMATIONAL ITEMS A. HOUSING AUTHORITY NEWSLETTER (November) Newsletters were reviewed by the Commission. Verna Smith referenced an insert in one of the newsletters with regard to emergency preparation and asked why it was not in all of the newsletters. Janet Moore stated that the property managers cycle through the notices and at one point have circulated the emergency preparation to all properties. Linda Ward commented on the new grocery service provided by Desert Samaritans to residents of Las Serenas. She stated that the program is very useful especially to those residents who are immobile. Ms. Ward mentioned that she read an article in the Desert Sun with regard to a neighboring city who met on the general plan and how it stated that they will include affordable housing but will not necessarily build it. She felt the article was humorous and complimented the City of Palm Desert. B. AGENCY HOME IMPROVEMENT PROGRAM UPDATE An update on the Home Improvement Program (HIP) was provided to the Commission for review. James Conway reviewed the update. Janet Moore stated that the Brightside published an article with regard to the Home Improvement Program and noted the high response to the program. 6 G:\RDA Patty Leon\Housing Commission\Minutes 2007\11-7-07.doc Housing Commission Minutes NOVEMBER 7, 2007 Verna Smith mentioned that she provided a copy of the Brightside to the Manager at Palm Desert Greens who was interested in the program. C. Phase II 20-Acre Site Update: Falcon Crest La Rocca Villas Martin Alvarez summarized the update provided by Cathy Walker. The invitation to the dedication for La Rocca Villas was provided to the Housing Commission as part of their packet. Janet Moore stated that the Commissioners' invitations were mailed subsequent to a correction made to the directions; new directions were provided to the Commission. Verna Smith mentioned that she met a prospective buyer who was awaiting approval for a home at Falcon Crest and had expressed she was very excited and appreciative of the City's program. Mrs. Smith indicated it made her very proud to hear that. Leo Sullivan inquired on the status of Mr. Bob Such's appointment to the Commission. Janet Moore stated that the Commission's request was forwarded to the City Council and applications are reviewed based on their schedules. The applications timeframe for all vacancies to committees and commissions is November. Mr. Such's application may be included in the processing of those applications for ease in scheduling with the Council. Mr. Sullivan expressed concern with regard to the attendance of the Commissioners in the summer and felt that it would be a concern during the holiday season. He emphasized on the Council to address this matter. Mrs. Moore reiterated that the request was forwarded to the City Council. ADJOURNMENT With members of the Housing Commission concurrence Chairman Jane Turner urned the meeti 4•./08 p m. to December 12, 2007. U v Patty Leon, R coraing Secretary 7 G\RDA\Patty Leon\Housing Commission\Minutes 2007\11-7-07.doc 1 PALM DESERT REDEVELOPMENT AGENCY INTEROFFICE MEMORANDUM TO: RACHELLE KLASSEN, CITY CLERK FROM: PATTY LEON, RECORDING SECRETARY DATE: SUBJECT: NOVEMBER 8, 2007 HOUSING COMMISSION MINUTES Attached is the following Housing Commission Meeting Minutes approved at the Housing Commission meeting held November 7, 2007: October 10, 2007 Meeting Minutes Please submit to the Housing Authority Board. Thank you. cc: Carlos L. Ortega, Executive Director S eFlr z_ nrT L t BY HOUSG AUTH `-f v ory a -i3- o"t VERIFIED BY: k c%7l u Original on file with Ci4y Cierk's OYice v 0 CITY OF PALM DESERT HOUSING COMMISSION MINUTES OCTOBER 10, 2007 CALL TO ORDER Chairman Jane Turner convened the meeting at 3:30 p.m. II. ROLL CALL Present: Jane Turner Leo Sullivan Natalie Russo Linda Ward Verna Smith Also Present: Richard S. Kelly, Councilmember Liaison Justin McCarthy, ACM for Redevelopment Dave Yrigoyen, Director of Redevelopment Janet Moore, Director of Housing Martin Alvarez, Redevelopment Manager Jessica Gonzales, Management Analyst Bryce White, Project Administrator James Conway, Project Coordinator Patty Leon, Recording Secretary Guest s : Teresa Vakili, RPM Company Bob Such, Potential Housing Commissioner III. ORAL COMMUNICATIONS Members Absent: Bryce White distributed invitations to the Commission of the dedication for Palm Village Apartments scheduled Monday, October 29, 2007 at 9:00 am. He mentioned that representatives from the County of Riverside will be in attendance as well as other Commissioners and City staff members. Housing Commission Minutes IV. CONSENT CALENDAR OCTOBER 10, 2007 A. MINUTES of the Regular Housing Commission meeting of September 12, 2007 With a Motion made by Commissioner Sullivan and seconded by Commissioner Ward, the minutes were unanimously approved. V. REPORTS AND REMARKS A. COMMISSION REPORTS Linda Ward reported on the Housing Adhoc Sub Committee meeting regarding Country Village Apartments. She noted that discussion took place with regard to one and two story senior units with elevators. She mentioned that a councilmember suggested balconies and/or patios for all units as well as walk-in closets. Mrs. Ward emphasized the importance of walk-in closets and hopes that the recommendations by the subcommittee are taken into consideration. She noted past experience as a member of the sub-committee for La Rocca Villas and felt that there was no consideration given to the recommendations discussed. Verna Smith stated she felt that the sub-committee is accomplishing a concept and making strides toward decisions. Ms. Ward stated that the preliminary discussion of potentially developing commercial retail at that site was not favored by the sub-committee. Justin McCarthy clarified that the developer of Palm Desert Country Club proposed a project and suggested retail as opposed to affordable housing. That discussion was presented to the Housing sub-committee and their preference is the senior project; City Council will be advised of the decision. B SUMMARY OF CITY COUNCIL AND REDEVELOPMENT AGENCY AGENDA ITEMS RELATED TO HOUSING, AND SUMMARY OF CITY COUNCIL, HOUSING AUTHORITY, REDEVELOPMENT AGENCY ACTIONS An update was provided to the Housing Commission for review. G:UiDA Patty Leon\Housing CommissionVvlinutes 200A10-10-07 Draft.doc Housing Commission Minutes OCTOBER 10, 2007 C. RPM MONTHLY STATUS REPORTS The Commission reviewed the Monthly Status Report for August. D. REPORT #1 - MONTHLY OCCUPANCY AND AVERAGE RENT STATEMENT The Commission reviewed the Monthly Occupancy and Average Rent Statement for August. Leo Sullivan asked about the tenants at Country Village and their term of tenancy. Teresa Vakili stated that as of August there are only 12 tenants residing at Country Village. The Redevelopment Agency contracted a consultant to relocate the remaining tenants. Martin Alvarez reiterated that a consultant is preparing a relocation plan and has met with the tenants to develop a criteria that will meet their needs. Once the relocation plan is complete, it will be forwarded to the City Council for recommendation contingent upon review of the Housing Commission. Dave Yrigoyen stated that the relocation process will take approximately four months. Janet Moore stated that based on preliminary schedules discussed with the consultant, if approvals are met in a timely manner, potential offers will be sent to the remaining tenants and possibly see vacancies at the end of February. She noted that it does not necessarily mean that those tenants will move by then it just means that they can potentially move by February. Linda Ward questioned the four month delay and asked if there was a specific reason why these 12 tenants are not moving. Mrs. Moore stated that these tenants have expressed that they like the location, their units, and how it is less expensive than market rate. Ms. Ward asked if they knew we have other locations available for them. Mrs. Moore stated that they have been sent information of the other 3 G U2DA\Patty LeonViousmg CommissionU4mutes 2007\10-10-07 Draft.doc Housing Commission Minutes OCTOBER 10, 2007 properties in the event they are low and moderate income. Justin McCarthy asked on the amount they are potentially eligible for. Mrs. Moore replied that it could be several thousand dollars. Mr. McCarthy stated that there is a statutory process we have to follow. Letters will be sent to the tenants to ensure appropriate steps are taken. Mr. Sullivan stated that his question wasn't really getting the tenants to move out but basically when they do move out how long is the process before we take it down to the ground. Mr. Yrigoyen stated that it could take several months; there is a process to follow such as the bidding process and review of plans and specifications. Mr. Sullivan asked why can't we go through the bidding process while waiting for the tenants to move. Mr. Yrigoyen reiterated how the Agency must follow the statutory process first. Mr. Sullivan asked if it is reliant upon having tenants in or out of the property and if it made any difference. Mr. Yrigoyen stated that it would presume we will have tenants out at a certain time and we can not presume that. He noted that tenants have rights in place and we have to follow that. Mr. Richard Kelly joined the meeting at this time. E. REPORT #2 — MONTHLY NET OPERATING INCOME STATEMENTS The Commission reviewed the Monthly Net Operating Income Statements for August. Leo Sullivan asked about La Rocca Villas occupancy date. Janet Moore stated that the Housing Authority is asking the City Council for the acceptance of the units at their meeting of October 11, 2007. Gas meters are scheduled to be set and tested. In the event there is an issue that may come up, staff will ask the Council to defer the acceptance and postpone the recommendation. 4 G'U2DA\Patty LeonWousing CommissionVvfinutes 2007\IO-10-07 Draft doc Housing Commission Minutes OCTOBER 10, 2007 Mr. Sullivan asked if we can make an exception to those items. Mrs. Moore replied that staff can potentially do that however those issues must be resolved in any case. Mr. Sullivan addressed Teresa Vakili and asked if tenants are in a queue for those units. Teresa Vakili replied that 50% of those units are pre-leased. F. HOUSING AUTHORITY PROPERTIES UPDATE (JAMES) An update on the Housing Authority properties was provided to the Commission. James Conway reviewed the update. Linda Ward inquired on the maintenance shed at Las Serenas. Mr. Conway stated that a temporary shed was placed on site due to the existing maintenance shop being significantly small in size. Ms. Ward asked on a time frame of the new structure. Janet Moore stated that there are several properties that were built without considering the maintenance facility for storage and in fact several properties are sharing storage. Las Serenas maintenance facility project is one that is being contemplated but is anticipated to cost approximately half a million dollars. It will require an architect to draw the plans as well as the site drainage plans which will be quite extensive. And, we are not even sure the site can accommodate such facility. That project has been put on hold to focus on Laguna Palms and Country Village. She noted that in the meantime a very economical solution was made to resolve any concerns with regard to shortage of storage space. Teresa Vakili was asked to provide pictures of the temporary storage which was said to be located in the back not visible from the front entrance of the complex. Ms. Ward asked if there has been any consideration given to implement a central maintenance facility such as the corporation yard as oppose to building maintenance facilities all over. Mrs. Moore replied that consideration has been given for a centralized location; however, some of the properties have fairly decent sized 5 G.\RDA\Patry Leon\Housing ComrttissionUvlinutes 2007\IO-10-07 Draft.doc Housing Commission Minutes maintenance facilities. OCTOBER 10, 2007 Mr. Conway stated that the properties that don't have maintenance shops share with other properties. Mr. Sullivan referenced the Informational Statistics and asked on the number of A/C repairs serviced in the summer. He stated that it would seem more logical to fix these repairs in the spring. Mr. Conway replied for reasons of funding availability as of July 15. The funding tends to get used up by the end of the year. Mrs. Moore stated that the Energy Coalition is actually proactive and have asked how they can help during that time frame. Mrs. Moore stated that tenants are actually proactive and have asked how they can clean their ac units. Mr. Sullivan asked Teresa Vakili if she had received any complaints from tenants regarding servicing the units in the summer; Mrs.Vakili replied no. Jane Turner inquired on the unit requesting proposals at Desert Pointe. Mr. Conway stated that the unit has been occupied by a long term tenant and in need of attention such as drywall repairs, interior doors, and electrical upgrades. VI. NEW BUSINESS VII. CONTINUED BUSINESS VIII. INFORMATIONAL ITEMS A. HOUSING AUTHORITY NEWSLETTER (October) Newsletters were reviewed by the Commission. Jane Turner mentioned an event invitation for the community room. Teresa Vakili noted that it was to encourage participation from the tenants. 0 G.U2DA\Patry LeonWousing CommissionVvtinu[es 2007\IO-10-07 Draft.doc Housing Commission Minutes B. HOME IMPROVEMENT PROGRAM UPDATE OCTOBER 10, 2007 An update on the Home Improvement Program (HIP) was provided to the Commission for review. James Conway summarized the report. He stated that, as a request from the last meeting, the report was modified to include the application completion date. He reported three projects completed and eight in process. Leo Sullivan questioned a property with a committed amount of $12,500 and 4,680 disbursed and asked about the remaining balance. Mr. Conway stated that the property may have been approved up to $12,500 but only required $4,680 in repairs. The homeowners do not get the remaining balance. Justin McCarthy reminded the Committee of the approval and recommended amendment to the Home Improvement Program to include mobile home parks. He stated that applications have been received and are being processed through the system and will start materializing on the report. He noted that this will be a new arena for staff. Mr. Sullivan asked if ownership of title to the land/parcel of the mobile home was required. Janet Moore stated that the mobile home owner has to have permission from the property owner in the event that they are trying to permanently attach the mobile home to a foundation. If this is the case, then it will become a little more detailed in terms of legal documents. If the repairs affect the property itself, approvals are required from the mobile home park association. Mrs. Moore stated that the County includes the same restrictions in their programs. She provided an example of a loud A/C unit and how the management company had no problem approving the repairs. Verna Smith asked if the mobile home communities are aware that this program is available. Mrs. Moore replied that the program has not been finalized by the City Manager. Once it is finalized, it is scheduled to publish in the City's Brightside in November encouraging participation without providing the exact delineations of the qualification criteria. She stated that Palm Desert Country Club has asked for information on the program to include in their newsletters. In the event the mobile home communities are interested in the program to publish in their rl G:U2DA\Patty Leon\Housing CommissionVvfinutes 2007\l0-]0-07 Draft.doc Housing Commission Minutes OCTOBER 70, 2007 newsletters, that information will be provided to them as well. C. Phase II 20-Acre Site Update: 1) Falcon Crest 2) La Rocca Villas Martin Alvarez summarized the update provided by Cathy Walker. He stated that Phase II is 80% complete and Phase III is 50% complete. La Rocca Villas received Certificate of Occupancies for all units. Verna Smith asked if all the single-family homes at Falcon Crest had closed escrow. Janet Moore replied that Phase I closed escrow on 29 homes and Phase II is 50% closed. For information purposes, Justin McCarthy reported that the Agency is periodically active in looking for properties to acquire and have identified a 14- unit project that was on the market. At this time, Janet Moore stated that the next Housing Commission meeting is scheduled one week earlier than its regularly scheduled date due to the City Council meeting on November 8`h. In the event the City Council opt to move their meeting to the next week, since they are only meeting once in November, the Housing Commission will continue to meet on November 7 h as previously approved by this Commission. IX. ADJOURNMENT With members of the Housing Commission concurrence Chairman Jane Turner a¢}Qurned the me ti at 4:06 p.m. to November 7, 2007. i' ol-t I Patty Leon, R cording Secretary G.V2DA\Patty Leon\Housing Commiss onVvfinu[es 2007\IO-10-07 Draft.doc I 1 PALM DESERT REDEVELOPMENT AGENCY INTEROFFICE MEMORANDUM TO: RACHELLE KLASSEN, CITY CLERK FROM: PATTY LEON, RECORDING SECRETARY DATE: SUBJECT: OCTOBER 16, 2007 HOUSING COMMISSION MINUTES Attached is the following Housing Commission Meeting Minutes approved at the Housing Commission meeting held October 10, 2007: September 12, 2007 Meeting Minutes Please submit to the Housing Authority Board. Thank you. cc: Carlos L. Ortega, Executive Director r- ° 8Y HOUSG AUTH ory o -a S-o -1 I VERIFIED BY:_.f.OK r'q Original on file with City Clerk's Office CITY OF PALM DESERT HOUSING COMMISSION MINUTES SEPTEMBER 12, 2007 I. CALL TO ORDER Vice-Chairman Leo Sullivan convened the meeting at 3:30 p.m. II. ROLL CALL Present: Members Absent: Leo Sullivan Natalie Russo Linda Ward Verna Smith Also Present: Richard S. Kelly, Councilmember Liaison Janet Moore, Director of Housing Martin Alvarez, Redevelopment Manager Bryce White, Project Administrator James Conway, Project Coordinator Patty Leon, Recording Secretary Guest s : Teresa Vakili, RPM Company Bob Such, Potential Housing Commissioner III. ORAL COMMUNICATIONS IV. CONSENT CALENDAR Jane Turner A. MINUTES of the Regular Housing Commission meeting of July 11, 2007 With a Motion made by Commissioner Smith and seconded by Commissioner Russo the minutes were unanimously approved with Housing Commission Minutes SEPTEMBER 12, 2007 Commissioner Ward abstaining since she was not present at that meeting. MINUTES of the Regular Housing Commission meeting of August 8, Zoo. With a Motion made by Commissioner Ward and seconded by Commissioner Russo the minutes were unanimously approved with Commissioner Smith abstaining since she was not present at that meeting. V. REPORTS AND REMARKS A. COMMISSION REPORTS Janet Moore referenced a letter addressed to the Commission that was received from the Office of the District Attorney that listed several training sessions. She reiterated that the training being offered with regard to the Brown Act is not mandatory and will not affect the requirement of ethics training. She noted that there is an online course for those members who have not taken the training; a printable certificate is available after the course. The City Attorney will notify those members who need to comply with the requirements. A separate mailer was provided to the Commission received from a non- profit organization in Rancho Mirage. For informational purposes, Mrs. Moore stated that it is City's policy to provide a listing of Committee and Commission members for distribution since it is public record. However, City Hall is given as the mailing address. At this time, Leo Sullivan asked about the Council's appointments of commission/committee members, pointing out that Mr. Bob Such had been present for the last three meetings. Janet Moore replied that Mr. Such's application has been submitted to the City Clerks o ce. She noted that she had discussed his interest with the City Clerk as well as the Council's appointments. She stated that a request could be forwarded at the request of the Housing Commission for review. Mr. Sullivan stated that he felt there was a problem with so few members on the Housing Commission and asked that this request be forwarded to 2 G:U2DA PatTy Leon\Housmg CommissionUlmute5 2007\9-12-07 .doc Housing Commission Minutes SEPTEMBER 12, 2007 the Council as soon as possible. He understood that this request would not be on the City Council agenda for September's meeting but asked about October's agenda. Mrs. Moore stated that this request will be forwarded to the City Clerk on behalf of the Housing Commission. She noted that the City Council sets the date for appointments to commissions and committees. She reported that at the most recent Council meeting, the Housing Authority board appointed a council liaison for this Commission. She advised that the council liaison might attend this meeting late due to conflict with another meeting. Mr. Sullivan stated that he would like to address this concern with the Mayor since only three members were present for the last two meetings and felt that they barely got through the meeting. He asked if staff had heard from Donna Lewis who had attended past meetings as a potential commission member; Mrs. Moore responded no. B. RPM MONTHLY STATUS REPORTS The Commission reviewed the Monthly Status Report for July. Janet Moore referenced both reports and asked if one suffices the other and if there was a preference for one or the other. With the Commission's acceptance, staff will continue to provide both reports. At this time, Janet Moore introduced Mayor Kelly to the Commission as the newly appointed council liaison to this Commission. D. REPORT #1 - MONTHLY OCCUPANCY AND AVERAGE RENT STATEMENT The Commission reviewed the Monthly Occupancy and Average Rent Statements for June and July. E. REPORT #2 — MONTHLY NET OPERATING INCOME STATEMENTS The Commission reviewed the Monthly Net Operating Income Statements for June and July. Leo Sullivan addressed Teresa Vakili and asked if there are any problems in filling the needs of our requirements. 3 G.RDA\Patry Leon\Housing CommissionUlinutes 2007\9-12-07 .doc Housing Commission Minutes SEPTEMBER 12, 2007 Teresa Vakili responded that there are a lot of applicants on the wait list and generally review 10 to 20 applications in order to qualify and pre- lease a unit. Mr. Sullivan asked about a"drop dead date" for waiting list applicants who are no longer interested. Ms. Vakili responded that after several attempts to contact applicants by either phone or letter those applicants are removed from the wait list. She also noted that if the applicant is not ready or able to move in when they are selected from the wait list at that time they are placed at the bottom of the list. If they decline a second time then they are removed from the wait list permanently. Natalie Russo referenced the report and asked if the breakdown of income levels indicated the difference in the rental rate for each category. Teresa Vakili responded yes and how the income levels are determined based on the household's income. Linda Ward commented on how her neighbor pays a different rental rate than she does having both the same identical unit. Janet Moore stated the income levels were standardized at 5% increments as opposed to having different rental structures for each tenant. F. HOUSING AUTHORITY PROPERTIES UPDATE (JAMES) An update on the Housing Authority properties was provided to the Commission. Leo Sullivan inquired on the AC replacements and repairs at several properties. James Conway stated that he has been working with the Office of Energy Management to prepare a comprehensive packet of several properties that will include the cost associated to incorporate energy efficiencies and the various rebate programs available. Mr. Sullivan asked if the window units at Desert Pointe would be reconsidered. 0 G:UtDA\Patty LeonViousmg CommissionVvlinutes 2007\9-12-07 .doc Housing Commission Minutes SEPTEMBER 12, 2007 Mr. Conway stated that of all the properties Desert Pointe is the most difficult to determine. It is not yet determined what the plan will be for that property. It was explained that in the past, staff looked at retrofitting the entire property but found it to be significantly high in cost. The tenants were asked what their preference was in terms of AC equipment to which most of them preferred the window units at that time. Staff is looking into different sources to assist the property in terms of making it more efficient. Mr. Conway referenced the cost comparison report provided to the Commission with respect to Laguna Palms and Palm Village Apartments. The square foot costs was included in the report, as requested by Leo Sullivan at the last meeting. Mr. Conway noted that the contingency amount for Laguna Palms is part of the construction totals; however, in the event that those amounts are not expended the totals will change. Janet Moore clarified that it is a full building square footage per foot cost for both properties. Linda Ward commented that Laguna Palms is still ongoing construction and therefore the report is not final at this point. Mr. Sullivan stated that he has been trying to get some kind of feel on whether it would have been worth our while to tear it down; assuming that everything else comes out without any other additions. He asked that the report be updated and brought back to the Commission especially if the totals change. He stated that he would like to be involved with the decision-making process in this particular property as a comparison to building Palm Village. He thanked James Conway for the report. Mrs. Moore stated that in the event we do have change orders that exceed any of the totals, an updated report will be provided to the Commission. Mr. Conway stated that there are two components that are not part of the Laguna Palms contract which are the carport structures and playground equipment. VI. NEW BUSINESS A. Laguna Palms — Ratify Engineering Services Rec: By Minute Motion: Action: Motion was made by Commissioner Russo and seconded by 5 G:U2DA\Patty Leon\Housing Commission\Mmutes 2007\9-12-07 doc Housing Commission Minutes SEPTEMBER 12, 2007 Commissioner Ward to forward a recommendation to the Palm Desert Housing Authority Board to ratify an agreement for professional services Contract No. HA for the re-design of structural engineering by a third party engineer related to the Laguna Palms renovation project. James Conway reviewed the staff report. Martin Alvarez stated that the changes that were accepted meet the building code requirements and are approved by an engineer. B. Laguna Palms — Change Order No. 3 Rec: By Minute Motion: Action: Motion was made by Commissioner Smith and seconded by Commissioner Ward to forward a recommendation to the Paim Desert Housing Authority Board to approve Change Order No. 3 to Contract No. HA 25760 (Portrait Homes, Inc.) in the amount of 16,085.95 for structural upgrades to the two-story building and various interior fixtures for the Housing Authority property known as Laguna Palms. Martin Alvarez reviewed the staff report stating that the change order includes a credit in the specified amount in addition to a new load beam, post and footings to support the second level. He stated that this is expected when retrofitting a 1960's building to meet current standards. With regard to the existing fixtures, in order to maintain consistency throughout the complex, those fixtures will be salvaged and used at the other housing authority properties. Leo Sullivan asked if the fixtures are those from the previous renovated units. Janet Moore responded yes, but that only those newer fixtures will be salvaged and used at other properties. Mr. Sullivan asked if the cost to upgrade the interiors of the previous units was included in the analysis prepared by James Conway. James Conway referenced the report and depicted the first line at the bottom, which listed the amount included of $180,000 for interior upgrades previously installed. C. California Villas — Notice of Completion Rec: By Minute Motion: 0 G.UtDA Patty Leon\Housing CommissionVvlmutes 2007U-12-07 dac Housing Commission Minutes SEPTEMBER 12, 2007 Action: Motion was made by Commissioner Ward and seconded by _ Commissioner Smith to forward a recommendation to the Palm Desert Housing Authority Board to authorize the City Clerk to file a Notice of Completion for the project known as California Villas Phase A, exterior building improvements (Contract No. HA-23650) James Conway reviewed the staff report. VII. CONTINUED BUSINESS VIII. INFORMATIONAL ITEMS A. HOUSING AUTHORITY NEWSLETTER (September) Newsletters were reviewed by the Commission. Linda Ward questioned the different numbers listed for courtesy patrol. Teresa Vakili stated that various companies are being used for the properties as opposed to contracting with one specific company. Mrs. Ward commented that she is impressed with Bower Company. B. HOME IMPROVEMENT PROGRAM UPDATE An update on the Home Improvement Program (HIP) was provided to the Commission for review. James Conway summarized the report, stating that five properties are nearing completion and one property is final. He noted that the properties that do not show amounts committed are in the review process. Mr. Sullivan inquired on the average time it takes for a property to be in the review process. Janet Moore stated that what lengthens the time is actually the applicants portion. There is quite a bit of information that needs to be submitted by the applicant and in most cases the applicant is unaccustomed to this process. Part of the HIP p ogram is federally funded by the Community Development Block Grant funds, which makes it difficult to be flexible on some of the documentation. In some cases the applicant will spend a fairly large lead-time just to accumulate the documentation and submit it. Mrs. Moore provided an example of one applicant that provided all the documentation within two days. Mr. Sullivan asked on the length of time it took to complete that particular 7 GUtDA\Patty LeonUiousing ComrttissionN4inutes 2007\9-12-07 .doc Housing Commission Minutes property. SEPTEMBER 12, 2007 Mrs. Moore explained that that applicant was in need of an emergency grant and was completed within two and a half weeks. She mentioned that applications are prioritized in terms of health and safety issues and/or code violations. She noted that the process has, in some cases, taken approximately 12 months. Mr. Sullivan questioned the length of time it takes for a$25,000 loan. Mr. Conway provided some examples of unforeseen issues at some of the properties such as mold and asbestos abatement to treat. He stated that working with the consultant and insurance companies has alleviated some of the duration of this process and allowed for immediate mitigation. Mr. Sullivan inquired on the start date of that particular property with issues. Mr. Conway responded that that particular property was in the system for approximately eight to nine months. Mrs. Moore explained how insurance issues have to be resolved and funds disbursed before disbursement of the HIP funds. She noted that the Agency's intent is to expedite this process and are always looking for ways to do so. Once the application is complete and assigned to Rancho Housing Alliance, homeowners are able to sign contracts with contractors to complete the work. Mr. Conway noted that the Agency has not received negative comments with respect to the time frames. Applicants are notified immediately when they submit an incomplete application. Mrs. Moore added that applicants are given plenty of time to respond to the request for documentation and are not arbitrarily removed. Mr. Sullivan referenced the update and stated that the scope of work for the properties in the review process did not seem complicated to correct. He asked if there was some way to insert a date of completed application on the update. He commented that some of the properties listed on the update seemed like they have been there forever. He referenced a property requesting to remodel the front yard and commented that it should not take that long to complete. Mr. Conway stated that the applicants recently added to the update are not aware of the actual improvements that are allowed. He noted that most of the items listed for improvements requested may not be the actual work accepted. He referenced the property on Portola Avenue and stated that that property will 8 G:U2DA\Patty Leon\Housing Commiss onUAinures 2007\9-12-07 doc Housing Commission Minutes SEPTEMBER 12, 2007 need a variance and will need to submit plans to the Building Department for approvals. Mrs. Moore stated that the Agency does assist homeowners with submittals to the Building Department and often times the homeowners will request variances exceeding code requirements. She noted that the completion date, which is the actual date that the work has been agreed to, can be added to the update. Mr. Sullivan stated that a discussion had taken place previously with regard to the properties acquired by the Palm Desert Redevelopment Agency and how setting up a fast track program with the various departments within the City would expedite this process. He asked if there was a way to develop a fast track program for these types of issues. He mentioned that he understood that there are limitations to variances and can often go back and forth making it difficult to resolve. He asked if there was a way to take a complete packet and fast track it through the various departments in the City so that we don't have to stumble over these things. Mrs. Moore replied that the fast track process is already taken place especially if it is a health and safety issue. She noted that there is no problem within the departments unless there is a requested item that is di cult to accommodate. She commented that the turn around time has been relatively quick with respect to our departments. Mr. Conway explained how most of the work requested does not require plan check but instead over the counter service that does not take too much time. He noted how often times the duration of time will actually come from the homeowners who are concerned with a lien on their property and request a reduction in the funding amount creating a new work write up. Mr. Sullivan asked if the consultants are outside contractors that get reimbursed from the program's funds. Mrs. Moore stated that the cohsultant is Rancho Housing Alliance a local non- profit organization who works with several cities. Positive feedback has been received from homeowners with respect to Rancho's performance. She reiterated the uneasiness of the homeowners when it comes right down to signing the documents and their commitment to the program in terms of loans and liens against their properties. She commented that there are a few committed loans with payments, but most are deferred or grants, given that most of the homeowners cannot afford the payments. She noted that the program is very successful and a new article will be published in the City's Brightside for the month of November asking for participants. 9 G:U2DA\Patty LeonUio sing Commission\Minures 2007\9-12-07 .doc Housing Commission Minutes SEPTEMBER 12, 2007 Mr. Sullivan noted that he was bringing these comments up to see if we could improve the program and facilitate it in some type of a manner that does not place a homeowner in a queue for nine months or a year. He felt that it seemed that it took a large amount of time. Mrs. Moore stated that those properties that seemed to be on a queue for some time have not completed what they need in order to proceed. She stated that staff will do what they can to facilitate the program as well as note any comments from new applicants with regard to the duration of the application process. She stated that often times the work requests are not a health and safety issue but rather a personal upgrade such as a new stove and/or new cabinets that do not qualify under the program. She mentioned how applications are prioritized depending on the specifics of improvements. Energy benefits that will assist with the condition of the property are given consideration. Mr. Sullivan asked if a new column may be added to the update to include the approval date of the application. Natalie Russo asked where to find the description for a grant with lien. Mrs. Moore stated that the new Home Improvement packet provided to the Commission for review two months ago has the descriptions of the funding components. C. PALM VILLAGE APARTMENTS A memo was provided to the Commission with attached copies of the Certificates of Occupancies for buildings A, B and C. The Commission gave a round of applause to Bryce White. Bryce White was pleased to announce that the Palm Village Apartments are now complete and have been issued a Certificate of Occupancy. He noted that a grand opening would be scheduled at a later date. Leo Sullivan asked when the property would be occupied. Janet Moore stated that as soon as approvals are received from the County, she anticipated November as the first few move-ins. Mr. White reported a minor vandalism of which the Sheriff Department was able to provide additional patrol. l0 CU2DA\Patty LeonWousing CommissionVvlinutes 2007\9-12-07 .doc Housing Commission Minutes D. Phase II 20-Acre Site Update: 1) Falcon Crest 2) La Rocca Villas SEPTEMBER 12, 2007 Martin Alvarez reviewed the update provided by Cathy Walker. He reported that Phase I is complete with 100% occupancy for 30 homes. Phase II is 80% complete and Phase III is 45% complete. Mr. Alvarez reported La Rocca Villas structurally complete with minor punch items to complete. Pictures of La Rocca Villas were distributed to the Commission for review. At this time Leo Sullivan addressed Mr. Kelly and asked that the Council give consideration to Mr. Bob Such who has attended three meetings as a candidate for the membership of this Commission. He asked Mr. Kelly to facilitate his approval since he felt that the Commission has run into several problems recently where they barely have three people show up to a meeting due to certain situations. He noted that the Commission is down to five members and expressed how he felt this has really caused some headaches and how a quorum of three is needed to make anything work. Once again he asked Mr. Kelly, as a member of the Council, if he would try and facilitate Mr. Such's approval. Mr. Kelly stated that the request needed to come from staff and not a request on his behalf. Mr. Sullivan noted that he just wanted the issue brought to Mr. Kelly's attention. Mr. Kelly reiterated that the request needed to come from staff. Janet Moore stated that staff would forward a request. IX. ADJOURNMENT With members of the Housing Commission concurrence Vice-Chairman Leo Sullivan a ned eetinC m. to October 10, 2007. Patty Leon, Rebording Secretary 11 CV2DA\Patty LeonU-Iousmg CommissionUdinutes 2007\9-12-07 .doc i. PALM DESERT REDEVELOPMENT AGENCY INTEROFFICE MEMORANDUM TO: RACHELLE KLASSEN, CITY CLERK FROM: PAl-fY LEON, RECORDING SECRETAR DATE: SEPTEMBER 13. 2007 SUBJECT: HOUSING COMMISSION MINUTES Attached arethefollowing Housing Commission Meeting Minutes approved atthe Housing Commission Meeting held September 12, 2007: July 11, 2007 Meeting Minutes August 8, 2007 Meeting Minutes Please submit to the Housing Authority Board. Thank you. cc: Carlos L. Ortega, Executive Director E BY HOUSG AUTH oN a`1-o7 VERIFIED BY:_"'"-- Originai on file with City Clerk's Office N O cnf'l w c 0 wW n D.0 ni7 r ITI o.:;-, N 7Q f!1 m C omiTD Tb m CITY OF PALM DESERT HOUSING COMMISSION MINUTES JULY 11, 2007 CALL TO ORDER Vice-Chairman Leo Sullivan convened the meeting at 3:30 p.m. II. ROLL CALL Present: Members Absent: Leo Sullivan Verna Smith Natalie Russo Also Present: Justin McCarthy, ACM for Redevelopment Dave Yrigoyen, Director of RedevelopmenUHousing Janet Moore, Director of Housing Jessica Gonzales, Management Analyst - Housing James Conway, Project Coordinator Patty Leon, Recording Secretary Guest s : Teresa Vakili, RPM Company Bob Such, Potential Commissioner Donna Lewis, Potential Commissioner III. ORAL COMMUNICATIONS Jane Turner Linda Ward Bob Such and Donna Lewis were introduced as potential Housing Commission members. City staff member Beth Longman was also introduced as the recording secretary for the month of August. IV. CONSENT CALENDAR A. MINUTES of the Regular Housing Commission meeting of June 13, 2007. Housing Commission Minutes JULY 11, 2007 With a Motion made by Commissioner Smith and seconded by Commissioner Russo the minutes were unanimously approved. V. REPORTS AND REMARKS A. COMMISSION REPORTS Janet Moore referenced a letter addressed to all City Committee and Commission members that was received from the Office of the District Attorney in Riverside. Mrs. Moore indicated that the City Attorney explained that the training being offered with regard to the Brown Act is not mandatory and will not affect the requirement of ethics training as an elected o cial. B. SUMMARY OF CITY COUNCIL AND REDEVELOPMENT AGENCY AGENDA ITEMS RELATED TO HOUSING, AND SUMMARY OF CITY COUNCIL, HOUSING AUTHORITY, REDEVELOPMENT AGENCY ACTIONS An update was provided to the Housing Commission for review. C. RPM MONTHLY STATUS REPORTS The Monthly Status Report for May was reviewed by the Commission. D. REPORT #1 - MONTHLY OCCUPANCY AND AVERAGE RENT STATEMENT Report #1 for May was reviewed by the Commission. E. REPORT #2 — MONTHLY NET OPERATING INCOME STATEMENTS Report #2 for May was reviewed by the Commission. F. HOUSING AUTHORITY PROPERTIES UPDATE (JAMES) An update on the Housing Authority properties was provided to the Commission. Verna Smith inquired if the new A/C window units installed at Country Village included occupied units only. James Conway stated that the existing tenants were offered the window units, given that the main cooling chiller system is inoperable. F G\rda\Patry Leon\Housing CommisswnUdinutes 2007 V d 1-07 Draft doc Housing Commission Minutes VI. NEW BUSINESS A. Laguna Palms - Verizon Rec: By Minute Motion: JULY 11, 2007 Action: Motion was made by Commissioner Russo and seconded by Commissioner Smith to forward a recommendation to the Palm Desert Housing Authority Board to approve Verizon Work Order No. 0547-8POAOAK in an amount not-to-exceed 35,014.86 to remove overhead lines and pull and install new telephone service at Laguna Palms Apartments. James Conway reviewed the staff report, stating that approving the recommendation will allow the removal of the overhead utility lines and install new service lines. Southern Edison Company will remove the overhead poles at no charge courtesy of a rebate. Natalie Russo asked if this expense was included as part of the underground conduit installation. Mr. Conway stated that a deposit was required at that time but not for the cost to pull and install new services. B. California Villas — Change Order No. 4(Portrait Homes) Rec: By Minute Motion: Action: Motion was made by Commissioner Smith and seconded by Commissioner Russo to forward a recommendation to the Palm Desert Housing Authority Board to authorize Change Order No. 4 to Portrait Homes, Inc. (Contract No. HA-23650) in the deductive amount of $1550.70 for exterior renovations at the Housing Authority property known as California Villas. Leo Sullivan asked if it was necessary to bring a routine recommendation with a minimal amount such as $1,500 and asked if there was a certain allowance in these transactions. Janet Moore stated the City Manager has also addressed this issue with respect to the Purchase Ordinance policy and procedures. However, the recommendation of the change order is a deductive amount and not an addition. There is a possibility that in the future Gtrda\Patty Leon\HousingCommission\Minu[es 2007V-I L07 Draft doc Housing Commission Minutes JULY 11, 2007 there will be a revision to the authorization of the City Manager so he is allowed, up to certain dollar amount, to authorize these change orders including deductive amounts. James Conway stated that this change order concludes Phase A. A Notice of Completion will be forwarded to this Commission once completed. C. Laguna Palms — Change Order No. 2(Portrait Homes) Rec: By Minute Motion: Action: Motion was made by Commissioner Smith and seconded by Commissioner Russo to forward a recommendation to the Palm Desert Housing Authority Board to approve Change Order No. 2 in the amount of $289,124.84 for Portrait Homes, Inc. (Contract No. HA 25760) for structural upgrades as required by California Building Code at the Laguna Palms Apartments. James Conway distributed pictures of the ongoing rehabilitation project at Laguna Palms. He stated that the majority of the changes are due to structural upgrades in order to meet current building codes. Leo Sullivan expressed that he has brought this issue up in the past and felt that this project would have been better off taking it down to the ground and starting from scratch. He requested a total expenditure of Laguna Palms rehabilitation, exclusive of the purchase of the property. He stated that he was concerned with the rehabilitation process especially how the structures are being torn down to the studs. Mr. McCarthy replied that an expenditure analysis will be prepared and brought to this Commission for review. Verna Smith agreed with Mr. Sullivan, stating that closer consideration should be given to older properties especially those that would not meet current building codes. Mr. McCarthy stated that there were institutional issues that were considered when this particular project was being scoped. He provided a brief explanation on the housing production requirements as part of the Stipulation. He stated that the deadline to meet our goal was met through the assistance of our Acquisition 4 G:Uda\Patry Leon\Housing CommissmnU4inutes 2007q-11-07 Draft.doc Housing Commission Minutes JULY 11, 2007 Rehabilitation Program that was used to rehab Laguna Palms. Upon question as to who establishes these deadlines, Mr. McCarthy explained the legal settlement between the Redevelopment Agency and the Western Center for Law and Poverty. As a result of that litigation, there was a resolution settlement whereby the Agency would agree by a certain date to create a certain amount of units. He noted how some of these older properties were purchased with the intent to rehabilitate them in order to meet our objectives. He stated that the deadline was met through these exercises as well as the new developments such as Palm Village Apartments and La Rocca Villas. Mr. Sullivan stated he felt uncomfortable with the recommendation since the Commission was taking staff's word to move forward. He mentioned that he was not going to be rubber-stamping as much as he has in the past. At this time, Janet Moore reported on the study session of the City Council of which both Verna Smith and Jane Turner attended with regard to Country Village. The City Council was apprised of the Commission and sub-committee's discussions. The consensus of the members present stated that senior housing would be most appropriate for that site. Some changes in the dynamics of the area may have an impact on the recommendation; however, members of the Council asked that the sub-committee meet to discuss those issues in more detail with respect to the layout and the appropriate amenities for that site. She noted that it is anticipated that this project is approximately a five-year project. Mrs. Smith stated that three of the council members were opposed to the assisted living services discussed. Mr. McCarthy stated that one of the dynamics being discussed is a new concept to consider retail at the frontage area of the site, brought forth from a developer. This concept has not been evaluated or discussed. Mrs. Moore stated that the existing residents at County Village have expressed that the do not want to move because of its location and close proximity to the services and amenities available. At this time, Mr. Sullivan asked for the number of children that reside at One Quail Place who are attending the head start program. 5 G\rda Patty LeonWousing CommissionVvlinutes 2007V-1 I-07 Draft.doc Housing Commission Minutes JULY 11, 2007 Mrs. Moore stated that last year there were nine of the seventeen students who reside at One Quail Place. Parents requesting the part-time program are accomodated at the Early Childcare Education Center (ECEC) formerly known as the Wallaroo Center located on Cabrillo and Alessandro. A discussion was made by Desert Sands to consolidate their facilities and actually move all students to the the ECEC for the full-time program. The difference between both facilities is the separation between rooms used for either nap times or different activities. She mentioned that four of the nine applicants on the waitlist are residents from One Quail Place. Mr. Sullivan asked if priority was given to residents of One Quail Place. Mrs. Moore replied that One Quail residents that show interest in the program are placed on the wait list due to proximity. VII. CONTINUED BUSINESS VIII. INFORMATIONAL ITEMS A. HOUSING AUTHORITY NEWSLETTER (July) Newsletters were reviewed by the Commission. B. HOME IMPROVEMENT PROGRAM UPDATE An update on the Home Improvement Program was provided to the Commission for review. James Conway reviewed the report stating that five projects are nearing completion, four in process, and six are new applicants. A proposed Home Improvement Program Guidelines and Changes At-A-Glance were provided to the Commission for review. Janet Moore reviewed the summary and stated that the information provided is the same version that is being presented to the City Council for approval at their meeting of July 12th. She stated that the revisions have been ongoing and expressed appreciation towards those commissioners who assisted in certain aspects of the changes. 0 G:\rda\Patty Leon\Housing Commission\Minu[es 2007V-I I-07 Draft doc Housing Commission Minutes JULY 11, 2007 Leo Sullivan inquired on an item in the City Council agenda with respect to several properties being acquired and asked if the property behind Country Village was part of the acquisitions. Justin McCarthy replied no and stated that those properties being acquired are part of a Redevelopment project known as the Alessandro Alleyway Project. In regard to the property behind Country Village, it was explained that the property was acquired and the existing home has been demolished. C. PALM VILLAGE APARTMENTS An update on Palm Village Apartments was provided to the Commission as well as updated pictures of the construction phase. Bryce White stated that most of the work on the pictures has been completed. An inspection with the Fire Marshall is scheduled for July 12 h. If approved, a final inspection will be scheduled with City inspectors. D. Phase II 20 Acre Site Update: 1) Falcon Crest 2) La Rocca Villas Dave Yrigoyen reviewed the update provided by Cathy Walker. He stated that La Rocca Villas is scheduled for completion in approximately one month. Phase one of Falcon Crest is complete. Twenty-one of the 29 families have closed escrow. IX. ADJOURNMENT With members of the Housing Commission concurrence Vice-Chairman Leo Sullivan a' rned the meeting at 26 p.m. to August 8, 2007. v`'`-`-/ "U I PATTY LEON, RECORDING SECRETARY 7 G:\RUA\Patry LeonlHousing Comm svon\Mmutes 2007V-I 1-07 Dmft doc CITY OF PALM DESERT HOUSING COMMISSION MINUTES AUGUST 8, 2007 I. CALL TO ORDER Vice-Chairman Leo Sullivan convened the meeting at 3:35 p.m. II. ROLL CALL Present: Members Absent: Leo Sullivan Natalie Russo Linda Ward Also Present: Justin McCarthy, ACM for Redevelopment Janet Moore, Director of Housing Martin Alvarez, Redevelopment Manager Jessica Gonzales, Management Analyst — Housing Bryce White, Project Administrator James Conway, Project Coordinator Beth Longman, Acting Recording Secretary Guest s : Teresa Vakili, RPM Company Verna Smith Jane Turner III. ORAL COMMUNICATIONS Janet Moore stated that the Agency's attorney has requested that New Business Item A, the Housing Cooperation Agreement, to be continued to a date uncertain. Action: Motion made by Commissioner Russo and seconded by Commissioner Ward, that the review of the Housing Cooperative Agreement be continued and such Motion was unanimously approved. Housing Commission Minutes IV. CONSENT CALENDAR AUGUST 8, 2007 A. MINUTES of the Regular Housing Commission meeting of July 11, 2007. Janet Moore reported that it has been confirmed by the City Clerk that if a majority of the members present at this meeting were also present at the July 11, 2007, meeting then a vote to approve those minutes can be taken. With a Motion made by Commissioner Russo and seconded by Commissioner Ward that approval of the Minutes be continued until the September 12, 2007, meeting and such Motion was unanimously approved. V. REPORTS AND REMARKS A. COMMISSION REPORTS There were no Commission Reports. B. SUMMARY OF CITY COUNCIL AND REDEVELOPMENT AGENCY AGENDA ITEMS RELATED TO HOUSING, AND SUMMARY OF CITY COUNCIL, HOUSING AUTHORITY, REDEVELOPMENT AGENCY ACTIONS An update was provided to the Housing Commission for review. C. RPM MONTHLY STATUS REPORTS The Monthly Status Report for June was reviewed by the Commission. Natalie Russo asked if it was correct at California Villas that there are ten units shown as vacant, but that are not down. Teresa Vakili responded that this is correct, and that these ten units are completed and ready to pre-lease. Ms. Russo inquired if there were prospective tenants on the waitlist. Ms. Vakili responded that because of the length of the recent construction, the waitlist was depleted and is now being re-established. The individuals who had been on the waitlist had already found housing. Janet Moore added that people on waitlists for other Housing Authority properties were being contacted to see if they had an interest in moving to California Villas. 2 G\RDA\Patry Leon\Housing Commissmn\Mmuces 2007\8-8-07 Dra t doc Housing Commission Minutes E. F AUGUST 8, 2007 Linda Ward asked if there were a larger number of people inquiring about renting at California Villas now that the renovation is complete. Ms. Vakili replied that traffic is picking up due to marketing efforts and the fact that the property has been renovated. Ms. Vakili also stated that people from surrounding apartment communities have approached them in hopes that the City would purchase their properties. Justin McCarthy stated that there is a large, approximately 200-unit property nearby that is similar in style and construction to California Villas, and that the City has approached the owners several times inquiring about a possible purchase. They have not been abie to make a deal on an acquisition. REPORT #1 - MONTHLY OCCUPANCY AND AVERAGE RENT STATEMENT Report #1 for June was reviewed by the Commission. REPORT #2 — MONTHLY NET OPERATING INCOME STATEMENTS Due to the fiscal year end process, Report #2 for June is not available, but will be provided as soon as it is available. Teresa Vakili stated that they want to make sure that all invoices for fiscal year 2006/2007 are in before preparing the statements. Janet Moore stated that the City does not officially close the books and provide preliminary financials until November with finalization in December or January. RPM has to follow the same schedule as the City, but they try to close sooner than that and hope to have the year-end reports available by October or perhaps September. HOUSING AUTHORITY PROPERTIES UPDATE (JAMES) An update on the Housing Authority properties was provided to the Commission. Leo Sullivan asked how many more compressor failures could be expected. Janet Moore stated that they are working with Pat Conlon of the City's Office of Energy Management who has suggested that we change out most of our units to 15 SEER ratings or higher. There are currently significant rebates being offered and Mr. Conlon is preparing a specification package for all of the Housing Authority properties except for Laguna Palms, California Villas, Country Village Apartments, Palm Village 3 G.\RDA\Patty Leon\Housmg Commission\Minutes 2007\8-8-07 Draft.doc Housing Commission Minutes AUGUST 8, 2007 Apartments, and One Quail Place. The units at One Quail Place will eventually be replaced, but because of the configuration and large number of units at this property there is a need to scope this project differently. It will also involve a lot of coordination with the tenants. Mr. Sullivan asked how much could be expected in rebates. Janet Moore stated that a rebate of approximately $500,000 against a replacement cost of approximately $2,000,000 could be expected for changing out approximately 370 units at the properties currently being considered. Ms. Moore further stated that they believe that the rebates are only guaranteed through the end of 2008. Some of the current units only have a rating of 6 SEER so by increasing e ciency of these units to a 15 SEER rating, we hope to defray some,of the cost through the savings. The tenants will see some benefit to this increase in efficiency; however, we can utilize the County's utility allowance for energy efficient units. This is a much smaller allowance to the tenant so we will collect more in rent. This will also help to offset the cost. Ms. Moore stated that these figures are a qualified estimate based on Mr. Conlon's initial review of a replacement program. Linda Ward asked James Conway if duct cleaning is done at the properties. Mr. Conway replied that duct inspections and cleaning are now required if an air conditioning unit is replaced. There is also a rebate program for this work. If the anticipated replacement program were undertaken, duct cleaning would be required. Ms. Ward stated that her ducts have not been cleaned while she has lived in her apartment, and that she understands that her air conditioner was replaced shortly before she moved in. Leo Sullivan asked if the phone entry system at Candlewood Apartments was being replaced or if it is a new system. Mr. Conway replied that it is a new system. New entry gates have been installed and an entry system is needed for tenants to give guests access to the property. Janet Moore pointed out the cost comparison prepared by Mr. Conway of factual numbers with respect to Laguna Palms and Palm Village. This shows the difference between a newly constructed project and a renovation. The information was provided to the Commission using Palm Village as a comparison because it is a recent project. However it was noted that there are variables between the two projects making the comparisons difficult. Primarily, the Palm Village project was a Davis Bacon prevailing wage job, while Laguna Palms was a renovation. There are increased costs with both of those types of projects, and staff is unable to quantify an amount, or percentage to allocate to the variable aspects of the projects. LJ G\RDA\Patry Leon\Housmg Commission\Minutes 2007\8-8-07 Draft doc Housing Commission Minutes AUGUST 8, 2007 Leo Sullivan asked if a comparison of square foot costs could be made for these two projects. James Conway will provide this comparison. Justin McCarthy noted that with the increase in land prices, the cost per unit could increase to $300,000 in terms of production. Natalie Russo commented that this sounds higher than market value for these properties. Mr. McCarthy replied that this could happen if properties are demolished and rebuilt or if they are rehabilitated to a current standard. Mr. Sullivan commented that it could be necessary to pay these prices in order to get the product into the portfolio. Mr. McCarthy noted that Palm Village had a very low land cost, and Laguna Palms was fairly low on a per unit acquisition cost. Land costs are now approximately $400,000 to $500,000 per acre. Mr. Sullivan noted that with the City being almost entirely developed, there is not much land available. This drives up the cost of land. VI. NEW BUSINESS A. Housing Cooperation Agreement Motion to continue was made during Oral Communications. VII. CONTINUED BUSINESS VIII. INFORMATIONAL ITEMS A. HOUSING AUTHORITY NEWSLETTER (August) Newsletters were reviewed by the Commission. B. HOME IMPROVEMENT PROGRAM UPDATE An update on the Home Improvement Program was provided to the Commission for review. James Conway stated that there are four homes nearing completion, three are in the middle of construction, and the remaining homes are new assignments and are just in the early stages of the program. The list has been reduced substantially. Leo Sullivan commented that is seems most of the projects are at $25,000. Mr. Conway responded that most are either at that amount or at $12,500, and they typically don't like to get into the loans and have the $200 monthly payment. G \RDA\Patry Lcon\Housing Commission\Mmutes 2007\8-8-07 Draft.doc Housing Commission Minutes AUGUST 8, 2007 Janet Moore noted that the new, higher amounts would begin appearing soon due to the changes in the Home Improvement Program guidelines that were recentiy provided to the Housing Commission. Applications submitted after the new amounts were approved will follow the new guidelines. C. PALM VILLAGE APARTMENTS Bryce White stated that the work left outstanding by the general contractor has been completed up to the point of some remaining punchlist items. Numerous final inspections have been passed including public works, landscaping, planning, and the Fire Marshall. Once the punchlist items are completed, the final inspection from the building department will be obtained. Leo Sullivan asked when tenants could be expected to take occupancy. Mr. White stated that he is not certain when that will occur because it is a new project, and also due to the relationship with the Riverside Economic Development Agency. Some of those requirements still need to be worked out. Janet Moore stated that because this project received HOME funds, the County gets a fair amount of control. They can inspect the units, and ensure that our plans, processes, and outreach to prospective tenants are acceptable to them. The use of the City's 20 percent funds are not governed by HUD, but the HOME program tends to rely on HUD for their guidelines, which are extensive. Staff is diligently working with them to work out the issues. Mr. Sullivan asked if this affects the pipeline of tenants. Teresa Vakili replied that there are approximately 70 people on the waitlist for this property. They will work with the County guidelines on our outreach to prospective tenants. Mr. Sullivan asked about the outreach. Janet Moore stated that the County has certain requirements on outreach to all segments of the community. StafF does not see that there is any one segment of the population that would not apply and has submitted that to them. They are very task oriented and want to see how the process works. Justin McCarthy commented that the HOME commitment was made six or seven years ago, and the requirements may have risen during that period of time. As a point of information, we do a great deal of outreach. Janet Moore stated that information on all of our properties is sent out quarterly in English and Spanish to such organizations as the United Farm Workers, Western Center for Law and Poverty, and a notice is published monthly in a Spanish language newspaper. Mr. Sullivan asked what the County offers that we don't already do. Mr. McCarthy stated that iYs Federal money and the County is only a conduit from HUD to the local level. We are trying to comply, or may look to renegotiate the terms. Ali options are being explored. 6 G\RDA\Patry Leon\Housing Commission\Minutes 2007\8-8-07 Draft doc Housing Commission Minutes AUGUST 8, 2007 Linda Ward asked if these processes were in place on all of the Housing Authority properties because she has never heard of it previously. Bryce White responded that it was only on Palm Viilage Apartments because of the $600,000 HOME grant that are Federal funds. This increased the cost of construction considerably, and his experience has shown that the County has added an extra layer beyond the HUD requirements for their own assurances. Leo Sullivan asked if there were some way to emphasize to whomever that because of accepting the $600,000, we have now spent whatever percentage more in trying to cover these issues. Justin McCarthy stated that having dealt with Federal funds over the years, this would not be a productive exercise. Where these types of funds are beneficial is where you get a large amount, or are able to fund an entire project. In the case of Palm Village, it is only about seven or eight percent of the total cost of the project. Bryce White commented that the project also doubled in size from inception. Mr. Sullivan asked if it would help if the Housing Commission tried to contact the County. Bryce said that he would work with the agreements that are in place that Janet Moore and Jessica Gonzales liave been working on. 1) Administrative Plan (Janet) Janet Moore stated that there is now a draft of the Administrative Plan. There has been a desire on the part of staff to institute such a plan. Staff reviewed the existing policies and procedures and combined them into this document. The County required this type of plan for Palm Village Apartments. It is not yet determined when the plan will go to the City Council for review and approval. Each March a white paper process is undertaken as part of the budgeting process where new and existing programs are researched and presented. Any subsequent approval occurs in June. Leo Sullivan asked if that would delay renting out Palm Village until next June. Ms. Moore stated that they are reviewing this aspect with the City Manager. He may have the authority to present the plan to the County stating that he has reviewed and accepted the plan in draft form. Linda Ward asked if the anti-discrimination language in the plan should also include sexual orientation. Ms. Moore stated that the City attorneys had been specifically directed to review this language in the draft and was informed that what is in the plan is taken directly from the most current legislation on anti- discrimination. Ms. Moore stated that they would look into Ms. Ward's question further. Ms. Ward is concerned that someone may try to use the lack of this inclusion as a loophole. Justin McCarthy noted that there would only be a problem if someone were discriminated against. We are obliged to adhere to the fair housing laws. 7 G:\RDA\Patty Leon\Housing CommissionU1inures 2007\8-8-07 Draft doc Housing Commission Minutes AUGUST 8, 2007 Natalie Russo noted that the verbiage in the draft plan is almost exactly what is included in her empioyer's fair lending and anti-discrimination disclosures. D. Phase II 20-Acre Site Update: 1) Falcon Crest 2) La Rocca Villas Martin Alvarez reported that everything was moving along smoothly on both elements of this project. Phase 1 is complete, and Phase 2 and 3 are well underway. Phase 2 is approximately 80 percent complete with stucco being applied to the homes. Phase 3 is in the framing stage and is approximately 50 percent complete. The La Rocca Villas are substantially complete and walk- throughs are being conducted on some of the units. 27 of the 29 homes in Phase 1 have closed escrow. Leo Sullivan asked how long it would be until the La Rocca Villas would be occupied. Mr. Alvarez anticipates completion by the beginning of September. IX. ADJOURNMENT Janet Moore wanted to remind everyone that the September 12, 2007, meeting will be held in the Development Services Conference Room. Maps are available if needed. Ms. Moore also noted that the Housing Commission Agenda is being provided to staff via e-mail, and inquired if any of the Commissioners would be interested in receiving their Agenda information in that form as well as a packet. Ms. Moore did note that there might be some information such as the monthly newsletters that would not be sent via e-mail. The Agenda packets will still be physically sent out prior to the meeting date. In the event Commissioners wish to receive the Agenda via email, Ms Moore asked if the hard copy could be sent via regular mail rather than Federal Express. Leo Sullivan and Natalie Russo both requested to receive the Agenda via e-mail and send the packet regular mail. Ms. Ward does not have email and requested that her packet be sent via Federal Express. Justin McCarthy stated that there would be an upcoming meeting or study session to review a Palm Desert County Club proposal as it relates to Country Village Apartments. The participants may include members of the Housing Commission and City Council. Martin Alvarez will be handling the scheduling and may contact housing Commission members. If it is a study session, ail members of the Housing Commission will be notified. G G.\RDA\Patry Leon\Housing Commisvonwlinutes 2007\8-8-07 Draft.doc Housing Commission Minutes AUGUST 8, 2007 With members of the Housing Commission concurrence Vice-Chairman Leo Sullivan adjourned the meeting at 4:25 p.m. to September 12, 2007. tl. . Beth Longman, Acti Reco itfifig Secretary G\RDA\Patry Leon\Housing Commission\Minutes 2007\8-8-07 DraR doc r PALM DESERT REDEVELOPMENT AGENCY INTEROFFICE MEMORANDUM TO: RACHELLE KLASSEN, CITY CLERK FROM: PATTY LEON, RECORDING SECRETAR DATE: JULY 12, 2007 SUBJECT: HOUSING COMMISSION MINUTES Attached is the following Housing Commission Meeting Minutes approved at the Housing Commission Meeting held July 11, 2007: June 13, 2007 Meeting Minutes Please submit to the Housing Authority Board Thank you. cc: Carlos L. Ortega, Executive Director RY HOUSG AUTH ory R-q-oh VERIFIED BY:rn J — Original on file with City Clerk's Office Removed for separate action - then; 1) Appointed Chairman Kelly as Authority Board liaison to the Housing Commission and Vice Chairman Benson as alternate. 4-0(Ferguson ABSENT) 2) By Minute Motion, received and file the Housing Commission Minutes for its meeting of June 13, 2007. 4-0(Ferguson ABSENT) w 0 w CITY OF PALM DESERT HOUSING COMMISSION MINUTES JUNE 13, 2007 I. CALL TO ORDER Chairman Jane Turner convened the meeting at 3:30 p.m. II. ROLL CALL Present: Jane Turner Leo Sullivan Verna Smith Natalie Russo Linda Ward Also Present: Carlos Ortega, Executive DirectodCity Manager Justin McCarthy, ACM for Redevelopment Dave Yrigoyen, Director of RedevelopmenUHousing Janet Moore, Housing Authority Administrator Jessica Gonzales, Management Analyst - Housing James Conway, Project Coordinator Patty Leon, Recording Secretary Guest s : Martin Alvarez, Redevelopment Manager Teresa Vakili, RPM Company Bob Such, Potential Commissioner III. ORAL COMMUNICATIONS Members Absent: The Commission was provided with a staff report regarding the One Quail Place signage notice of completion and was asked to add this item to the Agenda for discussion under item E, New Business. A Motion was made by Commissioner Smith and seconded by Commissioner Russo to add the One Quail Place signage to the Agenda. IV. CONSENT CALENDAR Housing Commission Minutes JUNE 13, 2007 A. MINUTES of the Regular Housing Commission meeting of May 9 2007. With a Motion made by Commissioner Sullivan and seconded by Commissioner Smith the minutes were unanimously approved with Commissioner Ward abstaining since she was not present at that meeting. V. REPORTS AND REMARKS A. COMMISSION REPORTS Jane Turner reported that Commissioner Verna Smith and herself attended the Coachella Valley Workforce Housing Summit on May 31, 2007; both agreed it was very informational and worthwhile. B. SUMMARY OF CITY COUNCIL AND REDEVELOPMENT AGENCY AGENDA ITEMS RELATED TO HOUSING, AND SUMMARY OF CITY COUNCIL, HOUSING AUTHORITY, REDEVELOPMENT AGENCY ACTIONS An update was provided to the Housing Commission for review. Janet Moore summarized the report. She stated that the action item to approve a Community Development Block Grant (CDBG) Analysis of Impediments to Fair Housing Report is being provided by the Department of Community Affairs (CDBG Department) and not the Redevelopment Agency. In the event the Director of Special Programs feels that there is a component that relates to the Housing Authority Properties a report might be brought to this Commission at a future date for review. Mrs. Moore also reported that a Study Session has been scheduled on Thursday, June 14, 2007 to discuss Country Village Apartments. She mentioned that the City Council requested that they be brought up to date after hearing conflicting project ideas. Rueul Young with Interactive Design will present the site and yield survey that was presented to the Adhoc sub-committee, as well as convey what the sub-committee discussed with respect to a senior facility and possibly some assistance to residents. She also reiterated that a feasibility consultant is currently being sought in the event one is necessary. Justin McCarthy stated that the purpose of the study session is for informational purposes only. The Council does not take action but rather provide guidance to staff. 2 G:V2DA\Palty Leon\Housing Comm ssmn\Minu[es 2007\6-13-07.doc Housing Commission Minutes JUNE 13, 2007 Mrs. Moore stated that members of the Housing Commission and Adhoc Sub-Committee are welcome to attend the meeting but are not required. C. RPM MONTHLY STATUS REPORTS The Monthly Status Report for April was reviewed by the Commission. Jane Turner asked about the low occupancy level at California Villas. Teresa Vakili stated that there has been a total of seven move-ins since the projecYs completion. In addition, various units are now available to complete minor touch ups and repairs as well as clean ups due to the re- roofing project. Upon question, James Conway stated that 21 units will be rehabilitated as part of Phase B site improvements. The projecYs time frame will take approximately 6 to 7 months. Upon question, Justin McCarthy provided an explanation of the importance of complying with the production requirements of our stipulation in terms of demolitions, densities, etc. He stated that in the case of Country Village, demolition is supportive based on the assessment conducted. Leo Sullivan expressed concern with the delay of both projects California Villas and Palm Village Apartments. He mentioned that he has brought this issue in past meetings and he suggested that in the future staff should pay close attention to the decisions being made. He felt that it seemed very doubtFul at times that we are making the right decisions. D. REPORT #1 - MONTHLY OCCUPANCY AND AVERAGE RENT STATEMENT Report #1 for April was reviewed by the Commission. Leo Sullivan referenced the report and question two significantly high rental rates listed for One Quail Place. Teresa Vakili stated that the rent increase was due to the market survey and the rental change established approximately a year ago. Janet Moore stated that the rent setting policy implemented the rental rate increase to existing tenants by a certain percentage a year to avoid over burden to the tenants, a request made by the City Council. However, new tenants will rent at the revised rates based on the new policy. She 3 G\RDA\Patty Leon\Housing Comm ssion\Minutes 2007\6-13-07.doc Housing Commission Minutes JUNE 13, 2007 provided an example of the calculated income rents based on the County's median income levels and stated that a family at the 75% income level was considered low income but can technically pay more than the maximum rent established by the survey. E. REPORT #2 — MONTHLY NET OPERATING INCOME STATEMENTS Report #2 for April was reviewed by the Commission. F. HOUSING AUTHORITY PROPERTIES UPDATE (JAMES) An update on the Housing Authority properties was provided to the Commission. Linda Ward commented that she was impressed with the installation of the tile in the clubhouse at Las Serenas. VI. NEW BUSINESS A. City Wide Tree Inventory Rec: By Minute Motion: Action: Motion was made by Commissioner Smith and seconded by Commissioner Ward to forward a recommendation to the Palm Desert Housing Authority Board to award a contract for the Citywide tree inventory to Davey Resource Group in the total amount of $33,440.00 (City $25,080 and Housing Authority 8,360.00) Janet Moore stated that the Landscape Department is requesting proposals for the inventory of City trees including the Housing Authority properties. Linda Ward questioned if the inventory would include trees on private properties that may be a hazard to our City properties. Janet Moore responded that those trees will be identified and property owners will be notified of its conditions. She further explained that the inventory of the trees is to identify the number, type, and conditions of the trees located throughout City and Agency owned properties. B. Lease Agreement — One Quail Place G U2DA\Patty LeonUiousmg Comm ssionU4inutes 2007\6-13-07.doc Housing Commission Minutes Rec: By Minute Motion: JUNE 13, 2007 Action: Motion was made by Commissioner Sullivan and seconded by Commissioner Ward to forward a recommendation to the Palm Desert Housing Authority Board to approve a Lease Agreement as to form, by and between Desert Sands Unified School District and the Palm Desert Housing Authority for the continuance, and implementation of a Head Start Program at One Quail Place. Janet Moore reviewed the staff report. Leo Sullivan inquired on the number of children that reside at One Quail Place who are attending the head start program. Janet Moore replied that she did not have a total number but will provide that information at the next Housing Commission meeting. She noted that originally all 17 students attending the head start program were One Quail residents. Linda Ward inquired as to the funding sources of other head start programs within Palm Desert. Mrs. Moore stated that head start programs are funded through the State. C. 2007-2008 Palm Desert Housing Authority Vendor List Rec: By Minute Motion: Action: Motion was made by Commissioner Sullivan and seconded by Commissioner Smith to forward a recommendation to the Palm Desert Housing Authority Board to authorize the use of named vendors for purposes of providing recurring, routine services, supplies, and maintenance to the Housing Authority properties. Janet Moore reviewed the staff report and stated that the list is updated twice a year based on quotes, bids, and actual services provided to the properties. This will provide the ability to utilize the vendors listed on the report for routine and recurring services at the properties. D. Notice of Completion — Palm Village Apartments Rec: By Minute Motion: 5 G V2DA\Patty Leon\Housing Commiss on\Mmutes 2007\6-13-07.doc Housing Commission Minutes JUNE 13, 2007 Action: Motion was made by Commissioner Smith and seconded by Commissioner Ward to forward a recommendation to the Palm Desert Housing Authority Board to authorize the City Clerk to file a Notice of Completion for Contract No. HA-25090 (Sunwize Technologies, Inc.) for design and construction of carports with photovoltaic solar arrays located at the Palm Village Apartments. Martin Alvarez reviewed the staff report. E. One Quail Place - Signage Rec: By Minute Motion: Action: Motion was made by Commissioner Smith and seconded by Commissioner Russo to forward a recommendation to the Palm Desert Housing Authority Board to authorize the City Clerk to file a Notice of Completion for Contract No. HA-25100 A Sign-A-Rama) for construction of the One Quail Place signage. Janet Moore reviewed the staff report and referenced the pictures attached to the staff report. VII. CONTINUED BUSINESS VIII. INFORMATIONAL ITEMS A. HOUSING AUTHORITY NEWSLETTER (June) Newsletters were reviewed by the Commission. B. HOME IMPROVEMENT PROGRAM UPDATE An update on the Home Improvement Program was provided to the Commission for review. James Conway reviewed the report stating that he anticipated closing out 4 to 5 projects this month. Leo Sullivan inquired on the target areas as well as the advertising for the program. G.\RDA Patty LeonWousing Commiss onN4inutes 2007\6-13-07 doc Housing Commission Minutes JUNE 13, 2007 It was explained that signs are placed on the project homes, which creates a high interest by neighboring homeowners. Janet Moore provided a brief explanation as to the considerable amount of time it takes to process an application. She noted that because it is an income driven improvement program, most homeowners are hesitant to provide the required documents to qualify, resulting in a delay of the application. In addition, Community Development Block Grants requires that properties be tested for asbestos and lead-base paint for clearance, prior to commencing work. Upon question of the number of projects forwarded by the Department of Code Enforcement, James Conway stated he did not have a specific number but that a number of projects have been assigned to the program due to,violations provided by code enforcement. C. PALM VILLAGE APARTMENTS An update on Palm Village Apartments was provided to the Commission as well as updated pictures of the construction phase. Martin Alvarez reviewed the update provided by Bryce White. He stated that the two major components remaining to complete the project are the required health and safety wiring of strobe lights for the hearing impaired and weather-stripping application on the walkways to allow water to drain properly. Linda Ward commented that Bryce White did a fantastic job in administrating the project. Janet Moore reported on the administrative aspect of Palm Village. She mentioned that multiple funding sources were used for this project one being Federal HOME funds. She noted that the HOME funds have more stringent requirements with respect to income reporting and tenant selection policy than the Agency's existing policies and procedures. Staff is currently working on combining both policies to implement one that will be used in all of the Housing Authority properties to ensure all tenants are treated equally. Mrs. Ward asked if the fire sprinklers are required in all new construction of senior properties. Mr. Alvarez replied that fire sprinklers are required in new construction and only required in rehabilitation projects with structures/buildings over 4,000 square feet. 7 G \RDA\Pa[ty LeonU-lousmg CommissionNAmu[es 2007\6-13-07.doc Housing Commission Minutes D. CATALINA GARDENS COMMUNITY ROOM JUNE 13, 2007 An update on the Community Room was provided to the Commission as well as an updated picture. Upon question of a Notice of Completion, it was mentioned that the community room was built by alternate funds and therefore a Notice will not be brought to this Commission for review. E. Phase II 20 Acre Site Update: 1) Falcon Crest 2) La Rocca Villas Martin Alvarez reviewed the update provided by Cathy Walker. He stated that 28 of the 29 single-family homes within Phase 1 have received Certificate of Occupancies with minor items remaining to complete. He noted that Phase 2 is 75% complete, senior apartments are 90% complete, and the management building is 80% complete. Discussion ensued with comments made by the Commission with respect to an article published by the Desert Sun of an applicant who did not qualify for the Falcon Crest program. Leo Sullivan suggested that staff ensure this situation does not happen again to avoid an embarrassing situation in the future. Justin McCarthy stated that this is a legal issue. IX. ADJOURNMENT With members of the Housing Commission concurrence Chairman Jane Turner adjourned the meeting at 4:22 p.m. to July 11, 2007. i..C PATTY LEON, RECORDING SECRETARY F3 G:\RDA\Pa[ty Leon\Housing Commisvon\Mmuces 2007\6-13-07.doc 1 PALM DESERT REDEVELOPMENT AGENCY INTEROFFICE MEMORANDUM TO: RACHELLE KLASSEN, CITY CLERK FROM: PATTY LEON, RECORDING SECRETARY f ` ` DATE SUBJECT JUNE 14, 2007 HOUSING COMMISSION MINUTES Attached is the following Housing Commission Meeting Minutes approved at the Housing Commission Meeting held May 9, 2007: May 9, 2007 Meeting Minutes Please submit to the Housing Authority Board. Thank you. ecei v c aY HOUSG AUTH - ON iL • $• 0-7 VERIFIED BY: K 'm Original on file with City Clerk's Office G cc: Carlos L. Ortega, Executive Director CITY OF PALM DESERT HOUSING COMMISSION MINUTES MAY 9, 2007 I. CALL TO ORDER Chairman Jane Turner convened the meeting at 3:30 p.m. II. ROLL CALL Present: Jane Turner Leo Sullivan Verna Smith Natalie Russo Also Present: Carlos Ortega, Executive Director/City Manager Dave Yrigoyen, Director of RedevelopmenUHousing Janet Moore, Housing Authority Administrator Jessica Gonzales, Management Analyst - Housing Bryce White, Project Administrator James Conway, Project Coordinator Patty Leon, Recording Secretary Guest s : Martin Alvarez, Redevelopment Manager Teresa Vakili, RPM Company Donna Lewis, Potential Commissioner Bob Such. Potential Commissioner III. ORAL COMMUNICATIONS Members Absent: Linda Ward Jane Turner welcomed newly appointed Natalie Russo to the Commission as well as two prospective members present Donna Lewis and Bob Such. IV. CONSENT CALENDAR A. MINUTES of the Regular Housing Commission meeting of April 11 2007. Housing Commission Minutes MAY 9, 2007 With a Motion made by Commissioner Sullivan and seconded by Commissioner Smith the minutes were unanimously approved. V. REPORTS AND REMARKS A. COMMISSION REPORTS B. SUMMARY OF CITY COUNCIL AND REDEVELOPMENT AGENCY AGENDA ITEMS RELATED TO HOUSING, AND SUMMARY OF CITY COUNCIL, HOUSING AUTHORITY, REDEVELOPMENT AGENCY ACTIONS An update was provided to the Housing Commission for review. C. RPM MONTHLY STATUS REPORTS The Monthly Status Report for March was reviewed by the Commission. Verna Smith inquired on the status of Country Village and asked if an update would be provided to both members appointed to the adhoc sub- committee. Janet Moore stated that the last discussion the subcommittee had with respect to County Village's site was to inquire on a consultant that can analyze the type of housing being requested. She noted that they have not come across any other public agency that has experience with a project like this. Verna Smith asked if the units at Country Village could be rented in the meantime. It was noted that most of the units were not in good enough condition to lease at this time. While we are in the process of determining the disposition it would not be cost effective to fix them up. D. REPORT #1 - MONTHLY OCCUPANCY AND AVERAGE RENT STATEMENT Report #1 for March was reviewed by the Commission. E. REPORT #2 — MONTHLY NET OPERATING INCOME STATEMENTS Report #2 for March was reviewed by the Commission. 2 G.Uda Patty LeonV-Iousing CommissionN4mutes 2007\5-9-07.doc Housing Commission Minutes MAY 9, 2007 F. HOUSING AUTHORITY PROPERTIES UPDATE (JAMES) An update on the Housing Authority properties was provided to the Commission. Leo Sullivan inquired on the carport demolition at Pueblos Apartments. James Conway stated that Pueblos Apartments consists of 15 units with 14 parking spaces as well as one handicap; however, only 8 parking spaces are currently covered. He also mentioned that the existing carport is in need of repair, which was estimated to cost $9,000.00. Staff is requesting proposals to tear down the existing carport and install a new one that will cover all 15 parking spaces. Mr. Sullivan asked if it was necessary to provide covered parking. Mr. Conway stated that the existing carport is considered non-conforming and in much need of repair. Janet Moore stated the during the tour that a new carport will be more durable, noting that the existing carport has been run into, plus it will enhance the visibility of the property. Mr. Sullivan suggested that property addresses be included on the report. Mr. Conway distributed pictures of Laguna Palms construction process and provided a brief explanation on the current activity. G. COPY OF (2) DESERT SUN NEWSPAPER ARTICLES: (JANET) The Commission was provided with two Desert Sun articles: Waiting list, cost grow as demand for housing soars" and "Summit to address issues of availability" Janet Moore reviewed the articles and referenced the Coachella Valley Workforce Housing Summit scheduled on May 31. She asked the Commissioners if they were interested in attending to please call Patty Leon. 3 G:\rda\Patty Leon\Housing Commission Ivlinutes 2007\5-9-07 doc Housing Commission Minutes VI. NEW BUSINESS A. Grant of Easement — Laguna Palms Rec: By Minute Motion: MAY 9, 2007 Action: Motion was made by Commissioner Smith and seconded by Commissioner Russo to forward a recommendation to the Palm Desert Housing Authority Board to authorize the Chairman to execute the Grants of Easement to Southern California Edison Company, Verizon and Time Warner Cable for facility service installations at the Laguna Palms Apartments. James Conway reviewed the staff report and asked for the approval of the recommendation. B. Change Order — Laguna Palms Rec: By Minute Motion: Action: Motion was made by Commissioner Smith and seconded by Commissioner Sullivan to forward a recommendation to the Palm Desert Housing Authority Board to approve Change Order No. 1 in the amount of $693,530.98 for Portrait Homes, Inc., (Contract No. HA25760) for interior building renovations not previously scoped for the Laguna Palms Rehabilitation Project. Leo Sullivan asked if the amounts on the change order are above and beyond the original budget. Janet Moore replied that the amounts are above the original contract, however, they are not above what the Agency anticipated spending on the project. Staff is requesting for an appropriation for this item as it was an unforeseeable item. James Conway explained the added components to the project such as including a new fire sprinkler to serve all units; rewiring of the units including the office, laundry room and maintenance shop; construct interior walls that were behind closet doors. He explained how these items were not part of the original scope of work but will enhance the safety features of the building. 0 G'Uda Patty LeonU-lousing Comm ssionVdinu[es 2007\5-9-07 doc Housing Commission Minutes MAY 9, 2007 Mr. Sullivan expressed concern with the change order and asked if we anticipated more changes in the future. Martin Alvarez explained that these items were not anticipated and minor items do surface in terms of construction, adding that most likely the project will have one or two change orders in the future. Mr. Conway further noted the added components from the contractor such as incorporating a higher quality of insulation and install hold-downs that secure the structures to the concrete at no cost to Housing. Natalie Russo asked on the percentage of units that have fire sprinklers currently at the Housing Authority properties. The response was that some of the older apartment complexes do not have fire sprinklers, however, consideration will be given when renovations take place. VII. CONTINUED BUSINESS VIII. INFORMATIONAL ITEMS A. HOUSING AUTHORITY NEWSLETTER (May) Newsletters were reviewed by the Commission. B. HOME IMPROVEMENT PROGRAM UPDATE An update on the Home Improvement Program was provided to the Commission for review. James Conway distributed pictures of a renovated property. He mentioned that there has been more activity in terms of processing invoices. Verna Smith questioned the reason for the hold-up at some of the properties. Janet Moore stated that the guidelines under the Community Development Block Grant (CDBG) program have changed. She stated that if CDBG monies are used in a project where there could potentially be lead-base paint and/or asbestos, it has to be tested, mitigated, and retested for clearance before work can occur, resulting in a delay of the project. She noted that clarification is being discussed with the City Attorney with respect to minor projects such as sewer hookups where the home is not disturbed. 5 a G.Uda Patty Leon\Housmg CommisswnVNinu[es 200T5-9-07.doc Housing Commission Minutes C. PALM VILLAGE APARTMENTS MAY 9, 2007 An update on Palm Village Apartments was provided to the Commission as well as updated pictures of the construction phase. Bryce White reviewed the update, stating that the installation of the photovoltaic panels that will service 9 units are almost complete. Leo Sullivan asked if the panels are safe and secure in term of vandalism or unacceptable behavior occurring. Mr. VVhite responded that the panels are enclosed in a glass surface and are not subject to any electrical concerns. Mr. White provided a brief explanation with regard to the utility allowance that will be calculated toward the tenanYs rental income. D. CATALINA GARDENS COMMUNITY ROOM An update on the Community Room was provided to the Commission as well as an updated picture. Bryce White reviewed the update. E. Phase II 20 Acre Site Update: 1) Falcon Crest 2) La Rocca Villas Dave Yrigoyen reviewed the update provided by Cathy Walker. With regard to La Rocca Villas, Martin Alvarez stated that a completion date is scheduled for June. Upon question on the sales of the Falcon Crest homes, Janet Moore stated that the Agency is in the process of preparing loan documents for the first phase, which consist of 29 homes, once the developer receives pre-approvals from the lender. She stated that Community Dynamics is responsible for the eligibility qualifications of applicants. IX. ADJOURNMENT V ith members of the using Commission concurrence Chairman Jane Turner adj, d he rr ee at 4• 0 p. . to June 13, 2007. AI' a TTY LEON, F ECORDING SECRETARY G:Uda Patty LeonU-lousing CommissionVvlinutes 2007\5-9-07.doc 0 G PALM DESERT REDEVELOPMENT AGENCY INTEROFFICE MEMORANDUM TO: RACHELLE KLASSEN, CITY CLERK FROM: PATTY LEON, RECORDING SECRETARY DATE: SUBJECT: MAY 11, 2007 HOUSING COMMISSION MINUTES Attached is the following Housing Commission Meeting Minutes approved at the Housing Commission Meeting held May 9, 2007: April 11, 2007 Meeting Minutes Please submit to the Housing Authority Board. Thank you. cc: Carlos L. Ortega, Executive Director r t- Y HOUSG AUTH ON ,h -,.-n % VERIFIED BY: al_ Original on file with City Clerk's Office CITY OF PALM DESERT HOUSING COMMISSION MINUTES APRIL 11, 2007 CALL TO ORDER Chairman Jane Turner convened the meeting at 3:30 p.m. II. ROLL CALL Present: Jane Turner Leo Sullivan Verna Smith Also Present: Carlos Ortega, Executive Director/City Manager Justin McCarthy, ACM for Redevelopment Dave Yrigoyen, Director of RedevelopmenUHousing Janet Moore, Housing Authority Administrator Jessica Gonzales, Management Analyst - Housing Bryce White, Project Administrator James Conway, Project Coordinator Patty Leon, Recording Secretary Guest s : Teresa Vakili, RPM Company Martin Alvarez, Redevelopment Manager III. ORAL COMMUNICATIONS Members Absent: Linda Ward For informational purposes, a copy of the staff report regarding the Regional Needs Assessment Allocation (RHNA) update was provided to the Commission for review. Janet Moore stated that the report will be received and filed at the City Council meeting of April 12th The Commission was asked to review the report and call Janet Moore with any questions. IV. CONSENT CALENDAR Housing Commission Minutes V APRIL 11, 2007 A. MINUTES of the Regular Housing Commission meeting of March 7 2007. With a Motion made by Commissioner Sullivan and seconded by Commissioner Smith the minutes were unanimously approved. REPORTS AND REMARKS COMMISSION REPORTS B. SUMMARY OF CITY COUNCIL AND REDEVELOPMENT AGENCY AGENDA ITEMS RELATED TO HOUSING, AND SUMMARY OF CITY COUNCIL, HOUSING AUTHORITY, REDEVELOPMENT AGENCY ACTIONS An update was provided to the Housing Commission for review. C. E. At this time, Jane Turner reported that Commissioner Linda Ward was unable to attend today's meeting but had asked that we share that she was very impressed with the housing tour especially the handbook; Mrs. Turneragreed. RPM MONTHLY STATUS REPORTS The Monthly Status Report for February was reviewed by the Commission. REPORT #1 - MONTHLY OCCUPANCY AND AVERAGE RENT STATEMENT Report #1 for February was reviewed by the Commission. REPORT #2 — MONTHLY NET OPERATING INCOME STATEMENTS Report #2 for February was reviewed by the Commission. G.UtDA\Patty LeonWousing Commission Mmu[es 2007\4-1 1-07.doc Housing Commission Minutes APRIL 11, 2007 F. HOUSING AUTHORITY PROPERTIES UPDATE (JAMES) An update on the Housing Authority properties was provided to the Commission. Leo Sullivan inquired on the landscape work damaged by the frost. James Conway stated that the landscape affected by the frost was cut back but has new growth as seen during the Housing Tour. Trees that were removed due to the frost will be replaced in certain areas only. Janet Moore reported that it was brought to her attention, prior to the meeting, that trees were lost today due to the high winds. G. PALM DESERT HOUSING AUTHORITY RESIDENT SURVEY (JANET) The Commission was provided with the results of the survey mailed to all Housing Authority tenants. Leo Sullivan commented that the results were good and questioned the response number. Janet Moore stated that the report was adjusted to ensure that the number of units that were determined down or vacant reflected in the percentage of surveys returned. Jane Turner asked if there was a problem with regard to enforcing the rules since it was highlighted in the poor comments. Teresa Vakili replied that it is not a problem and provided an explanation with regard to the change of management at Catalina Gardens and the problematic tenant at Las Serenas that is no longer there. Jane Turner addressed Teresa Vakili and asked if she was satisfied with the results; Mrs. Vakili responded yes and noted that the managers are very good with responsiveness and enforcing the rules. VI. NEW BUSINESS A. RPM Company Fee Increase Rec: By Minute Motion: 3 G UtDA\Patty LeonU{ousing ComrtussionVvlinutes 2007kt-1 l-07.doc Housing Commission Minutes APRIL 11, 2007 Action: Motion was made by Commissioner Sullivan and seconded by Commissioner Smith to forward a recommendation to the Palm Desert Housing Authority Board to ratify an adjustment to the management fee pursuant to the agreement for property management services by and between the Palm Desert Housing Authority and Ray, Douglas, Ann and Patrick Inc. A.K.A. RPM Company. Janet Moore reviewed the staff report, stating that consideration was given to the tenants' surveys, annual tour and periodic walk-through of the properties. Leo Sullivan questioned the duration of the contract and was under the impression that it was a five-year contract. Janet Moore responded that the initial contract with RPM Company was for five years, however legal counsel advised that because the properties were purchased with bond funds they are required to follow the tax- exempt bond rules established by the IRS. One of the rules prohibits continual contracts that allow automatic renewals. Therefore, RPM's Contract was adjusted to abide by those rules. B. Citywide Palm Tree Pruning and Removal Program Rec: By Minute Motion: Action: Motion was made by Commissioner Smith and seconded by Commissioner Sullivan to forward a recommendation to the Palm Desert Housing Authority Board to approve an award of Contract NO. C26220 to Tree Rite of Bermuda Dunes for the amount pertaining to the Housing Authority properties; 10,084.75 of the total contract and appropriate said amount to the respective Housing Authority landscape maintenance budget line items. Janet Moore reviewed the staff report, stating that the wording was adjusted to show the exact amounts appropriated to the respective accounts. Upon question of the cost per tree, Janet Moore responded that she understood it to be about $35 per palm tree. C. 2007-2008 Housing Authority Budget 4 G.UtDA\Patty LeonViousing CommissionVvlinutes 2007\4-I 1-07.doc Housing Commission Minutes Rec: By Minute Motion: APRIL 11, 2007 Action: Motion was made by Commissioner Sullivan and seconded by Commissioner Smith to forward a recommendation to the Finance Director to include the 2007-2008 Palm Desert Housing Authority Operating, Capital, and Replacement Budgets, with appropriate adjustments to the Reserve Expense of Candlewood Apartments, in the City of Palm Desert's Comprehensive Finance Plan for 2007-2008 to be presented to the Housing Authority Board for approval at a future meeting. Janet Moore reviewed the staff report. She provided an explanation with regard to the Agency's stipulated requirements in terms of housing needs and how each property was considered separately to determine its needs. Martin Alvarez was introduced to the Commission. Clarification was made to the asterisk noted on the "2006/2007 Actual" header, which denotes "based on eight months actual and four months budgeted". Leo Sullivan referenced and asked if the actual figures. Candlewood's budget comparison sheet amounts included the previous owner's Janet Moore explained that those figures are the Agency's only. The property was purchased in August of 2006 as a HUD property. Mr. Sullivan expressed concern on how no funds are being budgeted for the 2007-2008 Capital Expense and felt that we were being too conservative. Mrs. Moore explained that most of the repairs budgeted in the 06/07 Capital Expense are currently in process and anticipate completion by June 30, 2007. She noted that as long as the work has been solicited and monies have been encumbered it will carry over to the next year. In the event the property requires additional repairs, staff will provide a recommendation to this Commission at that time. Mr. Sullivan stated he was not comfortable with Candlewood's budget for 2007/2008 and felt that the amounts budgeted for the 5 G:U2DA\Patty LeonWousing CommissionUAinutes 2007 4d 1-07.doc Housing Commission Minutes APRIL 11, 2007 Reserve Expense account were significantly low. Discussion ensued with an appropriate amount to increase the Reserve Expense; Commission agreed on $120,000. Janet Moore provided an update on Country Village's site improvements and discussed the budget as anticipated for the next 12 months. A consultant will be solicited to conduct a feasibility study. D. Catalina Gardens Community Room Rec: By Minute Motion: Staff requested that this item be pulled from the Agenda. E. Laguna Palms Project Rec: By Minute Motion: A copy of the staff report was provided to the Commission for review. The City Council received and filed this item at its March 22"d meeting to avoid contractor delay after the City Attorney's review. VII. CONTINUED BUSINESS VIII. INFORMATIONAL ITEMS A. HOUSING AUTHORITY NEWSLETTER (April) Newsletters were reviewed by the Commission. B. HOME IMPROVEMENT PROGRAM UPDATE An update on the Home Improvement Program. James Conway reported eight homes in progress. He stated that the consultant is delayed on submitting invoices for payments. 0 G V2DA\Patty Leon Iiousing CommissionVvlinutes 2007\4-11-O7.doc Housing Commission Minutes APRIL 11, 2007 C. PALM VILLAGE APARTMENTS An update on Palm Village Apartments was provided to the Commission as well as updated pictures of the construction phase. Bryce White reviewed the update, stating that construction of the carports has begun. A certificate of occupancy has not been issued to release the units. D. CATALINA GARDENS COMMUNITY ROOM An update on the Community Room was provided to the Commission as well as an updated picture. Bryce White reviewed the update. Jane Turner inquired on the water leak at the community room. Bryce White stated that RPM's staff repaired the leak given that the contractor was terminated. E. Phase II 20 Acre Site Update: 1) Falcon Crest 2) La Rocca Villas 3) Occupation Information (Janet) Dave Yrigoyen reviewed the update provided by Cathy Walker. F. Estonia Protocol This item will be removed from the Agenda until further notice. IX. ADJOURNMENT With members of the Housing Commission concurrence Chairman Jane Turner adjourned the meeting at 4:17 p.m. to May 9, 2007. PATTY LEON, RECORDING SECRETARY 7 G:\RDA\Patty Leon\Housing CommissionVvlinutes 2007\4-11-07.doc 7 . -. PALM DESERT REDEVELOPMENT AGENCY INTEROFFICE MEMORANDUM TO: RACHELLE KLASSEN, CITY CLERK FROM: PATTY LEON, RECORDING SECRETARY DATE: APRIL 12, 2007 SUBJECT: HOUSING COMMISSION MINUTES Attached is the following Housing Commission Meeting Minutes approved at the Housing Commission Meeting held April 11, 2007: March 7, 2007 Meeting Minutes Please submit to the Housing Authority Board. Thank you. f' Y HOUSG AUTH ON a!o' rI VERIFIED BY: RA Original on file with City Clerk's Office 0 lN cc: Carlos L. Ortega, Executive Director CITY OF PALM DESERT HOUSING COMMISSION MINUTES March 7, 2007 I. CALL TO ORDER Chairman Jane Turner convened the meeting at 3:30 p.m. II. ROLL CALL Present: Jane Turner Leo Sullivan Linda Ward Verna Smith Also Present: Carlos Ortega, Executive Director/City Manager Justin McCarthy, ACM for Redevelopment Dave Yrigoyen, Director of RedevelopmenUHousing Janet Moore, Housing Authority Administrator Bryce White, Project Administrator James Conway, Project Coordinator Patty Leon, Recording Secretary Guest s : Teresa Vakili, RPM Company Natalie Russo, Potential Housing Commissioner Missy Wightman, Project Coordinator III. ORAL COMMUNICATIONS Members Absent: IV. CONSENT CALENDAR Housing Commission Minutes MARCH 7, 2007 A. MINUTES of the Regular Housing Commission meeting of February 7, 2007. With a Motion made by Commissioner Sullivan and seconded by Commissioner Smith the minutes were unanimously approved. V. REPORTS AND REMARKS A. COMMISSION REPORTS Janet Moore reported on the Housing adhoc sub-committee meeting that both Linda Ward and Verna Smith attended. She stated that several discussions took place with respect to Country Village and how the site could be best utilized. Linda Ward stated that she expressed concern with the three-story apartment complex as presented by the architect and how it was not suitable for Palm Desert, nor was a center corridor. She noted that consideration was given to propose a two-story complex for seniors. Although she felt that a mix use is much needed, she was concerned with the high-speed tra c and lack of children's facilities. Verna Smith stated that the initial discussions with the Housing Commission of designing a multi-family apartment had changed and how suggestions were made to possibly use the site in a different manner which staff is looking into the feasibility. Janet Moore stated that staff is researching all areas of consideration with respect to the concept suggested by the sub-committee and might be a lengthily process due to its nature. B. SUMMARY OF CITY COUNCIL AND REDEVELOPMENT AGENCY AGENDA ITEMS RELATED TO HOUSING, AND SUMMARY OF CITY COUNCIL, HOUSING AUTHORITY, REDEVELOPMENT AGENCY ACTIONS An update was provided to the Housing Commission for review. C. RPM MONTHLY STATUS REPORTS The Monthly Status Report for January was reviewed by the Corrimission. E G:Uda Patry LeonV-Iousing Comm svonVvlmutes 2007 i-7-07 doc m Housing Commission Minutes MARCH 7, 2007 Leo Sullivan inquired as to why the number of vacant units seems to be consistent for the last several months and asked about the remodeling of units. Teresa Vakili stated that the leasing of units had stopped due to the exterior renovations and roof projects. Given that Phase A of California Villas renovation project has been recently completed, 40 units will be re- leased before Phase B commencement date. Janet Moore also noted that the City's Risk Manager made the assessment, considering the risk to the City, that it would not be appropriate to re-lease units before environmental mitigations were complete. Existing tenants have requested transfers to renovated units which will open up another unit for renovation. Mr. Sullivan asked how many of those 40 units• will be transfers from existing units. Mr. Conway responded that 23 units have already been transferred and approximately 11 requested to remain in their current units but will be renovated as part of Phase B renovation project. Linda Ward asked for the cost for the inspections of the environmental concerns. Mr. Conway responded that the cost to test the acoustic ceilings range from $140 to $170 depending on the factors of urgency and lab location. Janet Moore explained the process of project budgeting and noted the budgets are established for that particular year that activity will take place. Phase B will include the site improvements and the renovation of 20 units. It was estimated that the per unit cost will be approximately $150,000 a unit including site improvements after the project is complete. Mr. Sullivan questioned the duration of the project in terms of its improvements and renovations from the date acquired. He addressed Carlos Ortega and stated that this has been a concern of the Commission in the past with respect to the lack of communication between City departments. He felt that we have been sitting on this project since 2003 and we are still not together in getting bids out, and stated that this did not seem reasonable. He commented on how he has brought this up before with the Mayor and how it seemed as if we were not communicating within departments in the City. He asked why departments could not meet all at once and say what they needed to expedite the bid process and not wait 4 years. He noted that he felt that this project has been a non-performing job since day one and will continue to be until all work has been completed, reiterating that it will take five years to finally get the project done. He 3 G:Uda Patty LeonV-Iousing CommissionVvlinutes 2007 3-7-07.doc J Housing Commission Minutes MARCH 7, 2007 expressed to Mr. Ortega that he was bringing this concern to his attention so that the lack of communication can get resolved in order to get the project done. He concluded by adding that the Commission is trying to take care of the tenants by providing units. James Conway stated that when a property is acquired it takes several months before a complete analysis of its direction is determined as well as the process of getting architects on board. He noted that the departments have been working together and are very committed to our projects. He agreed with Mr. Sullivan about being frustrated at times when a project takes a long time. D. REPORT #1 - MONTHLY OCCUPANCY AND AVERAGE RENT STATEMENT Report #1 for January was reviewed by the Commission. Leo Sullivan thanked Teresa Vakili for the assistance she provided to a family member of an individual who works with him. He mentioned that those tenants expressed concern with the kitchen cabinets, baseboards, and kick plates and how they were unacceptable. He questioned if a process was in place to renovate those units. Teresa Vakili replied that a plan is in process to renovate several units either through attrition or move outs, depending on what was budgeted for that year. She also noted that several units were upgraded between Desert Pointe, Las Serenas, Catalina Gardens and One Quail Place. Mr. Sullivan asked on the time frame of when a unit is determined down. Mrs. Vakili replied that once a unit is vacated, a walkthrough is conducted to assess the situation on whether a complete renovation is necessary as allowed for in the budget. She noted that additional monies were added to the 2007/2008 budget to renovate those units with cabinets that are 20 years old. She further noted that tenants should address those issues to the property manager so they could be corrected. E. REPORT #2 — MONTHLY NET OPERATING INCOME STATEMENTS Report #2 for January was reviewed by the Commission. Leo Sullivan asked about Candlewood Apartments. Staff explained it was a two-story property acquired by the Agency last year located south of Highway 111. 9 G:Uda Patry LeonWousmgCommission\Minutes 200T3-7-07.doc Housing Commission Minutes MARCH 7, 2007 Janet Moore stated that Candlewood Apartments will be part of the Housing Tour. F. HOUSING AUTHORITY PROPERTIES UPDATE (JAMES) An update on the Housing Authority properties was provided to the Commission. Verna Smith questioned if the landscape that was damaged due to frost was mitigated. James Conway stated that several properties were cleaned up and staff continues to work closely with the Landscape Department who are at the properties on a daily basis assessing the situation. VI. NEW BUSINESS A. Palm Village Apartments - Photovoltaic Solar Arrays Rec: By Minute Motion: Action: Motion was made by Commissioner Sullivan and seconded by Commissioner Smith to forward a recommendation to the Palm Desert Housing Authority Board to approve the assignment of Contract No. HA-25090 with Sunwize Technologies, Inc., a New York Company, to Sunwize Technologies, Inc., a Delaware Company, for the design and construction of Carports with photovoltaic solar arrays at the Palm Village Apartments Bryce White reviewed the staff report and asked the Commission for their recommendation. Linda Ward stated that the Desert Sun had published an article with regard to the State Senate considering charging homeowners for having solar arrays. Janet Moore stated that legislation was adopted for time of use meters. The Energy Department is in the process of preparing information on how certain areas will be affected with respect to the time of use meters. With regard to Palm Village Apartments, Mrs. Moore noted that those charges will be incurred by the Housing Authority. 5 G.trda Patty LeonUiouvngCommiss onUvlinutes 200711-7-07.doc Housing Commission Minutes MARCH 7, 2007 Justin McCarthy further stated that the City has already contacted our Legislatures as well as the Public Utilities Commission and appears to be some productive dialogue with respect to this issue. A resolution has not been finalized. B. One Quail Place - Signage Rec: By Minute Motion: Action: Motion was made by Commissioner Smith and seconded by Commissioner Ward to forward a recommendation to the Palm Desert Housing Authority Board to authorize award of Contract No. HA- to Sign-A-Rama for construction of monument signage located at the Housing Authority property known as One Quail Place. Missy Wightman reviewed the staff report. Leo Sullivan asked what the difference was in price between Calendar Giris and Sign-A-Rama. Ms. Wightman stated it was a difference of approximately $4,000. Jane Turner referenced the estimate received from Sign-A-Rama and asked on whether sales tax should be added to the price. Ms. Wightman will look into that and correct if necessary. C. California Villas - Phase B Rec: By Minute Motion: Action: Motion was made by Commissioner Smith and seconded by Commissioner Ward to forward a recommendation to the Palm Desert Housing Authority Board to authorize the City Clerk to advertise and call for bids for the Phase B Site Improvements for California Villas Apartments James Conway reviewed the staff report. D. Citywide Tree Pruning Project Rec: By Minute Motion: 0 G:4da Patty LeonV-lousing CommissionVdinutes Z00A7J-07.doc Housing Commission Minutes MARCH 7, 2007 Action: Motion was made by Commissioner Smith and seconded by Commissioner Ward to forward a recommendation to the Palm Desert Housing Authority Board to approve an award of Contract No. C26210 to Tree Element, Inc. for the Citywide Tree Pruning Program in the amount of $51,681.00 to the respective Housing Authority landscape maintenance budget to include the appropriate appropriations. Janet Moore reviewed the staff report provided to the Commission as part of the Addendum Agenda. She mentioned that the palm trees are not included in the recommendation but will be provided at the next Housing Commission meeting as part of the City's Palm Tree Pruning and Removal Program. Linda Ward questioned if Tree Element, Inc. had previously worked in Palm Desert and/or experienced with desert acclimated trees. It was explained that the Landscape Department are critical when reviewing bids and have a better determination on qualifications with respect to landscaping in Palm Desert. VII. CONTINUED BUSINESS VIII. INFORMATIONAL ITEMS A. HOUSING AUTHORITY NEWSLETTER (March) Newsletters were reviewed by the Commission. B. HOME IMPROVEMENT PROGRAM UPDATE An update on the Home Improvement Program. C. PALM VILLAGE APARTMENTS An update on Palm Village Apartments was provided to the Commission as well as updated pictures of the construction phase. Bryce White reviewed the update, stating he anticipates completion of most of the work within the next two weeks with minor pick up items. 7 GUda Patty Leon\Housing CommisswnVdmutes 2007 3-7-07.doc Housing Commission Minutes MARCH 7, 2007 Verna Smith commented that she had driven by the property and how it looked very nice. D. CATALINA GARDENS COMMUNITY ROOM An update on the Community Room was provided to the Commission as well as an updated picture. Bryce White reviewed the update. E. Phase II 20 Acre Site Update: 1) Falcon Crest 2) La Rocca Villas 3) Occupation Information (Janet) Dave Yrigoyen stated that a ribbon-cutting ceremony took place on March 5, 2007. Linda Ward stated that she did not receive an invitation to the ceremony. Janet Moore stated that the representatives at the sales office are available anytime to assist Commissioners with information and a tour of the model homes. Ms. Ward stated that she had read an article published in the Desert Sun with regard to the ceremony and was surprised to see that the architect Kristy Hanson was not recognized. Leo Sullivan stated that Mrs. Hanson was acknowledged for her work at the ceremony. As a follow up request from the last meeting with regard to the number of applications received from the Housing Authority properties, Janet Moore reported that 11 applications were received. As informational purposes, she mentioned the top four occupations of applicants that applied for the affordable program: 1. Retail sales (40); 2. Food industry 32); 3. Health care medical (26); and 4. Construction (22) F. Estonia Protocol G. 2007 Committee/Commission Member Update The Commission was asked to complete the membership update form provided in their packets. Janet Moore reminded the Commission of the Annual Housing Tour scheduled G Uda Patty LeonViousing CommissionUvlinutes 2007 7-7-07.doc Housing Commission Minutes MARCH 7, 2007 for March 23, 2007. She reiterated that the tour will be condensed to view properties of interest such as Candlewood, Palm Village, and California Villas. At this time, Chairman Jane Turner welcomed Natalie Wood thanked her for attending the meetings and suggested that she attend the housing tour. Verna Smith, Linda Ward and Leo Sullivan confirmed their anticipated attendance to the tour. IX. ADJOURNMENT With members of the Housing Commission concurrence Chairman Jane Turner purned the meetin at 4:36 p.m. to April 11, 2007. W(--— 1 U PATTY LEON, RECORDING SECRETARY G.Uda\Patty Leonu-Iousing CommissionUlmutes 20078J-07.doc I , r PALM DESERT REDEVELOPMENT AGENCY INTEROFFICE MEMORANDUM TO: RACHELLE KLASSEN, CITY CLERK FROM: PATTY LEON, RECORDING SECRETARY DATE SUBJECT: MARCH 8, 2007 HOUSING COMMISSION MINUTES Attached is the following Housing Commission Meeting Minutes approved at the Housing Commission Meeting held March 7, 2007: February 7, 2007 Please submit to the Housing Authority Board. Thank you. p E e BY HOUSG AUTH ON 3 - - p % VERIFlED BY:__ Originai on file with City Clerk's Office cc: Carlos L. Ortega, Executive Director CITY OF PALM DESERT HOUSING COMMISSION MINUTES February 7, 2007 1. CALL TO ORDER Chairman Jane Turner convened the meeting at 3:30 p.m. II. ROLL CALL Present: Jane Turner Leo Sullivan Linda Ward Verna Smith Also Present: Carlos Ortega, Executive Director/City Manager Justin McCarthy, ACM for Redevelopment Dave Yrigoyen, Director of RedevelopmenUHousing Janet Moore, Housing Authority Administrator Bryce White, Project Administrator James Conway, Project Coordinator Patty Leon, Recording Secretary Guest s : Teresa Vakili, RPM Company Tony Byone, Potential Housing Commissioner Natalie Russo, Potential Housing Commissioner III. ORAL COMMUNICATIONS Members Absent: Chairman Turner introduced Tony Byone and Natalie Russo who were present as potential housing commissioners. IV. CONSENT CALENDAR Housing Commission Minutes FEBRUARY 7, 2007 A. MINUTES of the Regular Housing Commission meeting of December 13, 2006. With a Motion made by Commissioner Ward and seconded by Commissioner Smith the minutes were unanimously approved. MINUTES of the Regular Housing Commission meeting of January 10, 2007. With a Motion made by Commissioner Ward and seconded by Commissioner Sullivan the minutes were approved; Commissioner Smith abstained from voting since she was not present at that meeting. V. REPORTS AND REMARKS A. COMMISSION REPORTS B. SUMMARY OF CITY COUNCIL AND REDEVELOPMENT AGENCY AGENDA ITEMS RELATED TO HOUSING, AND SUMMARY OF CITY COUNCIL, HOUSING AUTHORITY, REDEVELOPMENT AGENCY ACTIONS An update was provided to the Housing Commission for review. C. RPM MONTHLY STATUS REPORTS The Monthly Status Report for December was reviewed by the Commission. D. REPORT #1 - MONTHLY OCCUPANCY AND AVERAGE RENT STATEMENT Report #1 for December was reviewed by the Commission. Leo Sullivan inquired on the tenants' audit. Janet Moore responded that the audit is done annually and a date has not been scheduled. The Housing Authority sent out the annual tenanYs surveys. Once the 2 G Uda Patty LeonV-lou5mg Commi55ionVvlmutes 200T2-7-07.doc Housing Commission Minutes FEBRUARY 7, 2007 report is completed, staff will provide a copy to this Commission for review. E. REPORT #2 — MONTHLY NET OPERATING INCOME STATEMENTS Report #2 for December was reviewed by the Commission. F. HOUSING AUTHORITY PROPERTIES UPDATE (JAMES) An update on the Housing Authority properties was provided to the Commission. Leo Sullivan thanked James Conway for modifying the update as requested at the last meeting. Linda Ward asked if the river rock at One Quail Place was replaced with the existing rock; Mr. Conway responded yes. Janet Moore reported that an update on frost to the plants was provided by the Landscape Department. She stated that the properties, as well as the Coachella Valley, suffered severe damage to the plants due to the extreme cold temperatures. All measures are being considered to save the plants with the assistance of our Landscape Inspectors who have been inspecting the properties on various times during the last two months. Ms. Ward commented that the information was very informative and requested to include a revised simpler memo in the Housing Authority newsletters. Ms. Moore stated that the update will be modified and approved by the Landscape Department prior to sending it to the tenants. VI. NEW BUSINESS A. California Villas — Phase A Exterior Renovation Project James Conway reviewed the staff report 3 GUda Patty LeonUiousing CommissionVvlinutes 200A2J-07.doc Housing Commission Minutes FEBRUARY 7, 2007 Action: Motion was made by Commissioner Sullivan and seconded by Commissioner Smith to forward a recommendation to the Palm Desert Housing Authority Board to approve Amendment No. 1 in the amount of $33,390 to Contract HA 23650A with Harris & Associates for additional construction management services for Phase A Exterior Renovation Project at California Villas. VII. CONTINUED BUSINESS VIII. INFORMATIONAL ITEMS A. HOUSING AUTHORITY NEWSLETTER (January) Newsletters were reviewed by the Commission. Linda Ward commented that she has seen an improvement with residents abiding with the properties' rules and regulations. She has noticed patios well- maintained and less activity with tenants fixing vehicles in the driveways. Teresa Vakili stated that tenants are notified individually with regard to the regulations as part of their lease agreement. B. Schedules for California Villas and Laguna Palms Time-line schedules for both California Villas and Laguna Palms were provided to the Commission for review. Leo Sullivan commended staff for the time lines provided. Janet Moore stated that the time-lines are subject to change. C. HOME IMPROVEMENT PROGRAM UPDATE An update on the Home Improvement Program. James Conway reviewed the update and stated that the majority of the applicants are currently in the process of completing the approved work. D. PALM VILLAGE APARTMENTS An update on Palm Village Apartments was provided to the Commission as well as updated pictures of the construction phase. Bryce White reviewed the update. 4 G:4da Patty Leon\Housing CommissionVdinute5 2007 2J-07.doc Housing Commission Minutes FEBRUARY 7, 2007 Leo Sullivan inquired on the completion date of the units selected for photovoltaic panels. Mr. White stated that the company contracted to install the photovoltaic system is in the midst of changing ownership. A staff report approving the new ownership will be forv arded to the Housing Authority Board contingent upon approval and recommendation from the Housing Commission. The design plans of the carport are being finalized as part of the contract. E. CATALINA GARDENS COMMUNITY ROOM An update on the Community Room was provided to the Commission. Bryce White reviewed the update, stating the landscape is 60% complete. Regarding the furnishings of the community room, Janet Moore stated that the nature of the layout resulted in contracting three different vendors, and anticipates some of the furniture in the room by the tour date. Linda Ward expressed a concern with privacy between the Community Room and the Josyln Senior Center. Bryce White stated that privet edges were planted to create a barrier for privacy, as requested by the Housing Commission during the preliminary discussions of the design. The walkway areas lead directly to Catalina and Pueblos Apartments only. Janet Moore stated that the Community Room was not built specifically and solely for the use of the two properties and can be used by outside guests and organizations based on the guidelines reviewed by this Commission last year. E. Phase II 20 Acre Site Update: 1) Falcon Crest 2) La Rocca Villas Dave Yrigoyen reported that the models are 95% complete. The first phase of homes is 50% complete along Merle Street. Janet Moore stated that the Commission as well as members of the Council are invited to pre-view the models on Friday, February 9`h anytime between 10 to noon. There will be several staff members available for assistance if needed. She noted that there will be no shuttle service from City Hall to Falcon Crest since there was no interest shown. A ribbon cutting ceremony has been scheduled for March 5, 2007, which will be open to the public; invitations will be provided. 5 G:trda Patty LeonViousing Commisswn Minures 200T2-7-07.doc Housing Commission Minutes FEBRUARY 7, 2007 Mrs. Moore reported that approximately 1,000 applications were provided to interested applicants and approximately 178 were received back. She noted that out of 178, 126 have been pre-qualified with no problem filling up the first phase of the project. She further noted that during the 60-day qualifying period, applications were ranked based on certain criteria. Points were provided to those applicants that either lived and/or worked in Palm Desert, resided in one of our Housing Authority properties, as well as overcrowded in their current housing unit. Several applications were received from tenants of the Housing Authority properties. Upon question on the number of applicants that applied from the Housing Authority properties, Janet Moore replied that Community Dynamics maintains the statistics of that information since they are responsible for selling and pre- qualifying those applicants, but will provide a report at the next meeting. Mr. Yrigoyen commented that the model homes are impressive. Mrs. Moore agreed and noted that the finished backyards of those homes are not included in the sale. The interiors of the homes are standard features with the exception of the paint and furniture. Leo Sullivan asked about the financing available to purchasers. Mrs. Moore stated that it is a very comprehensive program. Three loans wiU be available to buyers. The first trust deed will be provided by a CaIFHA lender, a financing entity who allocates money to certain qualified banks in order to provide loans to low-income families. A commitment was secured for the first phase of the project at a rate of 5.75% to moderate incomes and 5.25% to low-income families. Secondly, the Agency will assist buyers with a deferred second trust deed loan. Additionally, the State's grant provided by Building Equity in Growth and Neighborhoods "BEGIN" program will provide a deferred third trust deed in the amount up to $30,000. The Agency will require an affordable restriction as part of the sale. In the event the terms in the affordability agreement are violated, those loans will be due and payable. Otherwise, no payments are due until the first trust deed is paid off. Upon question of the resale restrictions, Mrs. Moore advised that the Falcon Crest homes are not intended for financial investments. The properties will gain value at the rate increase in Riverside County's area median income. She noted that Desert Rose has sold 50% of their units over a ten-year period for reasons that homeowners were able to purchase larger homes after being able to save money under the affordable program. Several homeowners that have sold their Desert Rose home expressed appreciation for the opportunity and felt this was a stepping stone. She commented that the resales at Falcon Crest will probably be less because the homes are free standing which makes a difference. G:Uda\Patty LeonWousingCommiss onVvfmutes 200T2-7-07.doc Housing Commission Minutes FEBRUARY 7, 2007 Linda Ward stated that during the preliminary discussions of Falcon Crest with the Adhoc Sub-Committee it was mentioned that the City would maintain the front yards and asked if that was still the case. Mrs. Moore stated that a Homeowners Association has been established, similar to Desert Rose and will maintain a drought tolerant landscape throughout the development; turf will only be allowed in the back yards. Additionally, the homes will have awnings that will be maintain by the Association, as part of the HOA fees, and replaced during certain periods of time to keep continuity throughout the development. F. Estonia Protocol Carlos Ortega reported that the program is up and running and accepting applications. He noted that once the homeowners are ready to receive reimbursement, they are responsible to submit an application. Applications are available on Southern California Edison's web-site as well as the benefits available. He further mentioned several of the benefits listed such as replacement of dated air conditioners, duct testing, etc. A list of contractors will be available to homeowners, if needed. Residents will be notified of the program in the City's Brightside. G. Copy of thank you letter to Larry Saindon from Housing Commission A copy of the thank you letter to Mr. Saindon from the Housing Commission was provided to the Commission for review. Jane Turner mentioned that Mr. Saindon will be honored at the City Council meeting on Thursday, February 8, 2007. At this point, Chairman Turner thanked both potential commissioners for their presence. Janet Moore reminded the Commission to save the date of March 23, 2007 for the annual housing tour. IX. ADJOURNMENT With members of the Housing Commission concurrence Chairman Jane Turner ourned the mee ing at 4:15 p.m. to March 7, 2007. ll-l J' U PATTY LEON, RECORDING SECRETARY 7 G.trda\Patty Leon\Housing CommissionVvfinutes 200T2J-07.doc CITY OF PALM DESERT HOUSING COMMISSION MINUTES January 10, 2007 a-o I. CALL TO ORDER Chairman Jane Turner convened the meeting at 3:30 p.m. II. ROLL CALL Present: Jane Turner Leo Sullivan Linda Ward Also Present: Dave Yrigoyen, Director of RedevelopmenUHousing Janet Moore, Housing Authority Administrator Jessica Gonzales, Management Analyst Bryce White, Project Administrator James Conway, Project Coordinator Patty Leon, Recording Secretary Guest s : Teresa Vakili, RPM Company Reuel Young, Interactive Design Corporation Tim Rusic, Interactive Design Corporation III. ORAL COMMUNICATIONS Members Absent: Verna Smith Janet Moore informed the Commission that City Hall was closed to regular business for several days for staging coordination of President Gerald Ford's memorial service. For this reason, a few items requested at the last Housing Commission meeting will be provided next month including the minutes and the thank you letter to Larry Saindon. IV. CONSENT CALENDAR Housing Commission Minutes JANUARY 10, 2007 MINUTES of the Regular Housing Commission meeting of December 13, 2006 were continued to the next Housing Commission meeting. Motion was made by Leo Sullivan and seconded by Linda Ward to continue the minutes to the next Housing Commission meeting. V. REPORTS AND REMARKS A. COMMISSION REPORTS Leo Sullivan asked if inembers of this Commission were serving on more than one committee; the response was no. B. SUMMARY OF CITY COUNCIL AND REDEVELOPMENT AGENCY AGENDA ITEMS RELATED TO HOUSING, AND SUMMARY OF CITY COUNCIL, HOUSING AUTHORITY, REDEVELOPMENT AGENCY ACTIONS An update was provided to the Housing Commission for review. C. RPM MONTHLY STATUS REPORTS The Monthly Status Report for November was reviewed by the Commission. D. REPORT #1 - MONTHLY OCCUPANCY AND AVERAGE •RENT STATEMENT Report #1 for November was reviewed by the Commission. Upon question as to why the Monthly Occupancy and Average Rent Statement and Monthly Status Report were different in terms of occupancy, Teresa Vakili explained that the Monthly Status Report reflects a full four weeks, given that some of the properties are open on the weekends. The Monthly Occupancy Statement is through the end of each month. Move-outs generally take place at the end of the month so there may be a difference between the two cutoff times. Leo Sullivan commented that Mrs. Vakili did well on her feet for a response. 2 G'trda\Patry Leon\Housing Commission Mmutes 2007\I-10-07 .doc Housing Commission Minutes JANUARY 10, 2007 E. REPORT #2 — MONTHLY NET OPERATING INCOME STATEMENTS Report #2 for November was reviewed by the Commission. F. HOUSING AUTHORITY PROPERTIES UPDATE (JAMES) An update on the Housing Authority properties was provided to the Commission. James Conway summarized the update and noted that the light fixtures including bulbs at Las Serenas were replaced as part of the energy e ciency upgrades. Leo Sullivan referenced the report and suggested that there be a change to the routine items reported, as he would rather know whaPs going on with the properties in terms of the physical appearance as opposed to the weekly landscape walks. He felt the report was repetitive, commenting that James Conway was filling things in for the Commission. He addressed Chairman Jane Turner on her thoughts. Jane Turner stated that she was pleased with the report's formatting to one page and felt there was no reason to change it. In regard to the weekly landscape walks, Janet Moore stated that staff was being sensitive to a concern previously brought by Linda Ward regarding the landscape at Las Serenas, and therefore weekly landscape walks resumed at all properties. VI. NEW BUSINESS A. Country Village Apartments Janet Moore introduced Reuel Young and his associate Tim Rusic with Interactive Design Corporation who were present to discuss a brief overview of the site design and yield study of Country Village Apartments. Mrs. Moore asked the Commission for volunteers of one or two members to participate in an Adhoc Sub-Committee to review the different aspects of Country Village's proposed concept. Linda Ward volunteered and suggested that a second member be appointed as well. With no other members volunteering, Mrs. Moore noted that she would contact Verna Smith who was not present at the meeting. 3 G.Uda\Patry LeonViousing CommissionVvlmutes 2007\I-10-07 .doc Housing Commission Minutes JANUARY 10, 2007 Reuel Young displayed a site design and explained the proposed layout of the site. He stated that Casey's will remain in its current location as part of the development as well as integrate a fire station, upon the agreement between the City and County. Mr. Young explained that there are parking concerns and that would be reviewed with the City in order to provide for adequate parking. He described the layout with two types of units; a two-story town house with living area and kitchen as well as a carport located on the first floor with the two bedrooms on the second floor. A three- story building is being considered and would offer two-bedroom flat units. In a meeting that included staff members from Housing, Fire Department and Phil Drell, Mr. Young explained how Mr. Drell discussed that all cities in the Coachella Valley were close to built- out in terms of land available to accommodate affordable housing. With the shopping across from Country Village Apartments, it was explained how this site is very desirable for affordable housing; further noting how Mr. Drell had recommended and supported the idea of a three-story building. The three-story building was depicted with varying levels visually pleasing from the main entrance and to avoid an immediate impact from the adjacent office building. Two elevators would serve the third level floor and only stairs would serve the second floor. He further noted that in the preliminary discussions of the site design it did not include a pool because it raised issues both in maintenance and insurance. There was a general discussion on the adjacent property that the City acquired in order to allow extending the site to provide for more units. Janet Moore mentioned that this design is very preliminary which was why Mr. Young was showing the unique layout of the odd- shaped parcel and explained the importance of having Housing Commission members as part of the sub-committee for further review. She noted that some of the unresolved issues at the moment still remain with legal counsel. Linda Ward asked whether the property would be a senior complex. Mrs. Moore stated it would be a multi-family complex and not age 0 G:trda\Patty Leon\Housing Commiss onVvlinutes 2007\I-10-07 .doc Housing Commission Minutes restricted. JANUARY 10, 2007 Upon question of the units square footage, Mr. Young stated that the town houses would be approximately 1,000 and the two- bedroom flat units at about 850. Ms. Ward shared her concern with not having a play area for children. Mr. Young noted that a community park is located within a quarter of a mile to the west. Leo Sullivan questioned whether anyone had checked with Dr. Kerigan whose office is located adjacent to the property. Mr. Young explained that he has not had any conversations with him. Mr. Sullivan stated he would mention it to Dr. Kerigan since he was meeting with him the next day. Janet Moore reiterated that this is not a final concept and with the guidance of the sub-committee further review would be given to the design of the units and bring back the outcome of those discussions. Ms. Ward expressed concern with the three-story building in terms of fire hazard. Mr. Young explained that the effort to balance the limited resources of land, the economics of where people live, and the livability have to be considered at all times. He believed that a three-story building is an acceptable solution in limited circumstances and how the location is very desirable. Mrs. Moore explained that at this point it was too early in the process to say what the final recommendation would be. Action: Motion was made by Commissioner Sullivan and seconded by Commissioner Ward to continue the approval of the site design and yield of proposed project as presented for separate consideration to a future meeting (date uncertain), with Commissioner Smith absent. Further discussion ensued with an explanation of mounting the AC units on the roofs. Mr. Young concluded by noting that Photo Voltaic will be considered in the project. 5 G:Uda\Patty Leon\HousingComm ssion\Minuces 2007\L10-07 .doc Housing Commission Minutes B. California Villas Rehabilitation Project James Conway reviewed the staff report. JANUARY 10, 2007 Janet Moore anticipated Phase B going out to bid in the second quarter of 2007 and how the construction manager being requested today would assist with that phase. Linda Ward motioned to approve. Leo Sullivan stated that he has expressed himself previously on how he feels with these particular contracts and commented he could really make this a real issue by not seconding the motion. He stated several times that he question the fact that we contract out so many services and how then the Commission is presented with budget changes and shared he was very concerned with this issue. He asked about staffs involvement and questioned why staff is not capable of handling these things. He suggested hiring an additional staff member particularly for these purposes stating it would not cost us this much money. Dave Yrigoyen responded that this type of service is a particular type of professional expertise. He explained that generally if we hired a construction manager it would cost more than contracting out on a project that will eventually be completed. Potentially then there would be a staff member that would have no work until the next project comes around. He noted that staff is busy with assignments in other projects and that is why we contract these types of projects. Mr. Sullivan commented on how much money has been spent on professional services including this project, noting that a$135,240 contract is being presented today and again questioned why we can't have an additional staff member. Mr. Yrigoyen replied iYs not unusual for cities to do this. He stated that in many cases the problem of paying someone a salary of $100 an hour to do less expensive work would be an issue to the City in terms of economic sense. Linda Ward agreed with Mr. Sullivan's comments and stated that if we had a staff member to do these types of services it would have saved Bryce White a lot of time. 0 G.Uda\PattyLeon\HousingCommission Minutes 2007\I-10-07 doc Housing Commission Minutes JANUARY 10, 2007 Janet Moore stated that this process common amongst cities. Construction managers are used for public works projects as well. There is also a benefit to having outside management because they are a third party between the owner and contractor and are consistently on site managing the project which staff is often not able to do. She further noted that the hourly rate for a construction manager might be inconsistent with the City's pay scale. Mr. Sullivan stated that since other departments use this type service too then why not consider an additional staff member to be able to assist the various departments, commenting he was finding difficulty with this issue. He noted the amounts paid for the renovation project at California Villas and questioned the justification. He suggested that a study should be done on why we are spending this significant amount of money. Mr. Yrigoyen stated that his request would be forwarded to the City Manager. James Conway stated that by contracting these type of services allows staff to contract with the best qualified construction management firm for that particular type of project. Action: Motion was made by Commissioner Sullivan and seconded by Commissioner Ward to forward a recommendation to the Palm Desert Housing Authority Board to authorize the award of a professional services to Harris 8 Associates in the amount of 135,240.00, plus reimbursable expenses of $5,000.00 for construction management services for Phase B of the California Villas Rehabilitation Project (Site Improvements); with the caveat that a request be forwarded to the City Manager of a study of amounts disbursed for these services, with Commissioner Smith absent. C. California Villas — Portrait Homes Change Order No. 3 James Conway reviewed the staff report. Action: Motion was made by Commissioner Sullivan and seconded by Commissioner Ward to forward a recommendation to the Palm Desert Housing Authority to approve change order no. 3 to Contract No. HA 23650 for Portrait Homes Inc. for the exterior building renovations at the Housing Authority Property known as California Villa, with Commissioner Smith absent. 7 GUdaNatty LeonUiousmg CommissionVvlinures 2007U-10-07 .doc Housing Commission Minutes JANUARY 10, 2007 Jane Turner stated that she drove by California Villas and commented it was very pleasing and a project that we are going to be very proud of. Mr. Conway distributed pictures of California Villas for review. D. Laguna Palms —Award of Contract Staff asked that the Commission replace the staff report in their packets with a new updated report. Janet Moore stated that only one bid was received at the bid opening on January 9, 2007. She noted that there is one caveat in the recommendation and this is to authorize the award to Portrait Homes in the specified amount pending verification of the bid amount being a fair value. That amount will be analyzed within the next couple of days with the Construction Manager, Architect, and City staff to ensure that everyone agrees it is a qualified bid based on experience and fair value. If the award can not be made, it will be brought back to this Commission. Upon question if Portrait Homes were on budget with regard to California Villas, Mrs. Moore stated that they have worked well with their estimations and change orders have been within the industry standards. Based on Mr. Sullivan's request, the unfinished interior renovations were added to the scope before it went out to bid and that amount is included. Action: Motion was made by Commissioner Sullivan and seconded by Commissioner Ward to forward a recommendation to the Palm Desert Housing Authority to authorize an award of contract to Portrait Homes, Inc. in the amount of $5,047,924 for interior and exterior renovations at the Housing Authority Property known as Laguna Palms pending verification of fair value of the bid amount from staff, architect and construction management firm, with Commissioner Smith absent. E. Mid-Year 2006/2007 Budget Adjustment Janet Moore reviewed the mid year budget adjustments provided in a memo from Veronica Tapia. She depicted a typo that was made to item number 3 and how it should be Las Serenas and not Laguna 8 G Uda PatryLeon\HousingCommissionVvlinuces 2007\I-IO-07 doc Housing Commission Minutes Palms. JANUARY 10, 2007 She noted that the amount being requested for Catalina Gardens and Pueblos includes the community room's furniture. Mrs. Moore noted that this is an adjustment to the budget and will be offset by a grant received from the State of California Workforce Housing. Also mentioned was the abatement of two units at Desert Pointe due to asbestos in the flooring. Mrs. Moore explained that when California Villas was acquired the doors were in dire need of replacement, the Architect determined that they wanted to install a different door style to complement the actual design of the complex. In efforts to conserve money, those doors will be used at a different property with regard to a project anticipated for next year. Mrs. Moore also clarified One Quail Place's carport expenditure to be for painting and not resurfacing as noted on the memo. One Quail Place fees were explained as the purchase of a software program that will assign rental rates based on the income information inputted in the system. Action: Motion was made by Commissioner Sullivan and seconded by Commissioner Ward to forward a recommendation to the Finance Director the recommendation to request approval to appropriate funds for the mid-year adjustments for the Housing Authority properties, with Commissioner Smith absent. VII. CONTINUED BUSINESS VIII. INFORMATIONAL ITEMS A. HOUSING AUTHORITY NEWSLEl'fER (January) Newsletters were reviewed by the Commission. Linda Ward suggested a flyer be inserted in the newsletter regarding the need for a Housing Commissioner from the Housing Authority properties, and asked if two members from Las Serenas is acceptable. Janet Moore explained that a tenant from the larger properties such as One Quail Place be preferable since there is a difference living at a multi-family complex but that there would be no objection to residents at the senior GUda Patry Leon liousmgCommissionVvlinuces 2007\I-10-07 .doc Housing Commission Minutes properties. B. Schedules for California Villas and Laguna Palms JANUARY 10, 2007 Janet Moore reported that the schedules will be presented at the next Housing Commission meeting. C. HOME IMPROVEMENT PROGRAM UPDATE An update on the Home Improvement Program. James Conway reviewed the update and stated that this was a form that was not updated due to the closing of City Hall. Leo Sullivan referenced the newsletter and read a quote from J.R.R. Tolkien IYs a job thaYs never started that takes the longest to finish". Jane Turner asked about Rancho Housing Alliance's perFormance. James Conway responded that they were progressing moderately. Their anticipated assignments per year are between 20 and 25 cases. D. PALM VILLAGE APARTMENTS Bryce White distributed pictures of the construction progress and provided a brief summary. The design of the carport structure as well as the photo voltiac, has been forwarded to the Building Department for approval; the undergrounding for the photo voltaic is in place. Ceramic tiles have been installed at almost all the units. The project continues to move slowly but it is progressing. E. CATALINA GARDENS COMMUNITY ROOM Bryce White reported that the project is moving forward with sub-contractors handling most of the work. Work has begun on the fire lane from the Joselyn Senior Center parking lot up to the property itself. Additionally, the irrigation system is currently being installed. E. Phase II 20 Acre Site Update: 1) Falcon Crest 2) La Rocca Villas lo GUda Patty Leon\Housing CommissionVvlinutes 2007\I-10-07 .doc Housing Commission Minutes JANUARY 10, 2007 Dave Yrigoyen reported that the project is on schedule and anticipates a walk- thru with staff next week of both La Rocca Villas and Falcon Crest. A ribbon cutting date will be scheduled once the models are completed. Janet Moore also reported that an interest rate commitment was locked for the first phase at Falcon Crest with California Homes Financing Agency (CaIFHA). The interest rates were locked at 5.25% for low-income families and 5.75% for moderate-income families three days before the rate changed. F. Estonia Protocol Janet Moore reported that the City received funding from the Public Utilities Commission. The Office of Energy Management Department is currently in the process of opening a new o ce. Programs will be implemented to allow Palm Desert residents to upgrade their dated equipment. IX. ADJOURNMENT A. A memo was provided to the Commission listing the approved Housing Commission meetings scheduled for 2007. Janet Moore informed the Commission that the Council has provided a tentative date for the 2007 Housing tour of March 23`. Several members of the Council requested that we visit new and renovated sites, therefore the tour will be condensed. The tour hours will be approximately from 9:00 a.m. to 11:30 a.m. With members of the Housing Commission concurrence Chairman Jane Turner a ned eetin a p.m. to February 7, 2007. PATTY LEON,RECORDING SECRETARY 11 G Uda\Patty Leon\Housmg CommissionU4inures 2007\I-10-07 .doc CI1V OE Pnl l DESERI 73—S o FRED WARING DRIVE ALM DESERT, CALIFORNIA 92260-25]8 TEL: ]60 ;q6—o6u Fnx: 760 340-0574 in Fo palm-desert. org NOTICE OF JOINT STUDY SESSION OF THE PALM DESERT CITY COUNCIL, PALM DESERT REDEVELOPMENT AGENCY, PALM DESERT HOUSING AUTHORITY, ' AND HOUSING COMMISSION NOTICE IS HEREBY GIVEN that the Palm Desert City Council, Palm Desert RedevelopmentAgency, and Palm Desert Housing Authority will convene for a Joint Study Session with the Palm Desert Housing Commission at 8:30 a.m. on Friday, March 23, 2007, in order to tour Housing Authority Properties (i.e., La Rocca Villas and Falcon Crest, Country Village, California Villas, Laguna Palms, Palm Village Apartments, Catalina Gardens, One Quail Place, Neighbors Apartments, The Pueblos Apartments, Taos Palms, Desert Pointe, and Las Serenas). Said Study Session will convene in the North Wina Conference Room of the Palm Desert Civic Center, 73- 510 Fred Waring Drive, Palm Desert, California, and continue with a bus tour of selected properties from the aforementioned. CHELLE D. KLASSE , CITY CLER CITY OF PALM DESERT, CALIFORNIA March 16, 2007 NO ACTIONS WILL BE TAKEN AT THE STUDY SESSION. PURPOSE OF THE STUDY SESSION IS INFORMATION ONLY. j nimioo mnwnvu