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HomeMy WebLinkAbout2022-03-02 HC Regular Meeting MinutesI. CALL TO ORDER PALM DESERT HOUSING AUTHORITY PALM DESERT HOUSING COMMISSION MEETING · PRELIMINARY MINUTES WEDNESDAY, MARCH 2, 2022-3:30 P.M. (VIRTUAL MEETING} CITY OF PALM DESERT, CALIFORNIA l Chair Buller called the meeting to order at 3:30 p.m. -II. ROLL CALL Commissioners Current Meeting Fiscal Year to Date Present Jann Buller, Chair Dennis Guinaw, Vice Chair Carol Marcuse Greg Ballard Melody ry'lorrison Also Present: Kathleen Kelly,-City Councilmember Liaison Jessica Gonzales, Senior Management Analyst Teresa Vakili, RPM Company Vice President Kevin Collins, Recording Secretary Martin Alvarez, Director of Development Veronica Chavez, Finance Manager Anqy Firestine, Assistant City Manager Randy Chav~z, Landscape Supervisor Azalia Gomez, participant Ill. ORAL COMMUNICATIONS X X X X Absent Present Absent 7 7 7 X 3 4 (2 Excused) 6 1 Senior Management Analyst, Jessica Gonzales, advised the Commission no comments or inquiries were received by email, nor were any requests for public participation received for the meeting. ·, PRELIMINARY MINUTES VIRTUAL HOUSING COMMISSION MEETING MARCH 2, 2022 IV. CONSENT CALENDAR A. MINUTES of the virtual Regular Housing Commission meeting of March 2, 2022. Rec: Approve as presented. Upon a motion by Commissioner Morrison, seconded by Commissioner Marcuse, and a 4-0 vote of the Housing Commission the Consent Calendar was approved as presented (AYES: Buller, Guinaw, Morrison, Marcuse; NOES: None; ABSENT: Ballard). V. ACTION ITEMS A. REQUEST FOR CONSIDERATION to recommend approval of the Pc1lm Desert Housing Authprity Proposed Budget for FY 2022-2023 Senior Management Analyst, Jessica Gonzales, ,.introduced Finance Manager Veronica Chavez, who provided a brief introduction of herself and moved onto acknowledge the budget memo and report provided. · Ms. Chavez reminded commissioners that one of the responsibilities of the Housing Authority is to monitor the costs associated with operating the properties. Pursuant to that, RPM Company provided expenditure estimates for budget consideration on the 15 properties for the 2022-2023 period. The budget expenses provided to the Commission within the agenda packet were reviewed by staff for submission to Council for consideration pending Commission review and approval. She further advised the Commission the overall projected net income for all fifteen properties is expected to be approximately $1.2M and the net increase was positive bc1sed on rental income increases and is approximately $273,000. Ms. Chavez then stated an update to the reserve study on the properties had been included in the budget because the current study used was about ten years old and should be updated to reflect improvements and additional complexes not completed when the original study was conducted. With that, Ms. Chavez concluded her remarks and invited .questions. Commissioner Marcuse asked why the advertising line item of the budget had increased from $2,886 in 2021 to a projected amount for 2022 of $12,900. Ms. Vakili responded stating advertising costs were reduced because fewer promotional events could be held under COVID, such as back to school promotions. Further, that occupancy attrition rates were not changing as in prior years so a need for advertising had decreased. Commissioner Guinaw inquired on three questions. The first related to the overall bl!dget increase, specifically asking if it was approximately eight percent. 2 PRELIMINARY MINUTES VIRTUAL HOUSING COMMISSION MEETING MARCH 2, 2022 I Ms. Chavez deferred to Teresa Vakili, who said she did n9t have the exact percentage, but it may be about eight percent. She added that there had been an income increase in part due to a change in rental rates, however the proposal was based on actuals. Commissioner Guinaw then clarified his question and asked if the higher inflation rates were accounted for in the budget. Ms. Vakili said yes, but this year turnover was lower during the pandemic. People were not moving as much as in pastiyears. She further stated delinquency rate~ increased and RPM had been working with Lift-to-Rise to.assist residents with rental assistance to offset. Commissioner Guinaw then stated that during 2021 One Quail had a significant deficit, but in 2022 the property anticipated a surplus of $504,000. He asked if the estimated surplus would be enough to offset deficits reflected on some of the other properties: Ms. Chavez replied stating to keep in mind that there were capital improvements made to One Quail in 2021; and those costs are generally not considered an operating expense. If he were to look at the rest of the budget compared to other operating costs, they are pretty much in line wit~ 2021. Last, Commissioner Guinaw asked about securing RDA funds. Ms. Chavez said the process for qualifying for those funds changed and at this point the City of Palm Desert did not qualify as in past years, but we would look for other opportunities in the future. ' · Commissioner Morrison asked about laundry room income listed on the report for Carlos Ortega in the amount of $42,000. Ms. Chavez mentioned it was on the report provided by RPM under income, but it was for One Quail Place, not Carlos Ortega. Ms. Vakili replied stating there was no increase in pricing. The laundry income listed was actual income generated .. Chair Buller then inquired on the age of the reserve study and was concerned about a statement on the report. The statement indicated sufficient funds deposited covered the immediate costs, but no long-term source had been identified_ for ~dequate support. She further asked if the commission needed to be concerned or attentive to that statement. Ms. Gonzales responded stating we were looking for other opportunities that may be available as a source to assist, but if there were opportunities Commissioners became aware of, to provide it so it could be reviewed. \ Councilmember Kelly stated Palm Desert was not the only city facing this challenge and that the League of Cal Cities, an advocacy voice for housing; was highly aware of the issue and had raised it with the Governor and legislature. Ms. Gonzales then mentioned that a guest joined the call, Azalia Gomez and thereafter Chair Buller called a vote on recommending approval of the budget presented. 3 PRELIMINARY MINUTES VIRTUAL HOUSING COMMISSION MEETING MARCH 2, 2022 Upon a motion by Commissioner Guinaw, seconded by Commissioner Marcuse, and a 4-0 vote of the Housing Commission, the request to recommend approval of the Palm Desert Housing Authority Proposed Budget for FY 2022-2023 is approved as presented (AYES: Buller, Guinaw, Marcuse antj Morrison; NOES: None; ABSENT: Ballard). , 8. REQUEST FOR CONSIDERATION to recommend approval of an Amendment to Contract No. HA38270 with Liberty Landscaping, Inc. for Landscape Maintenance · Services at the Palm Desert Housing Authority Properties for a two-year term in an annual amount not to exceed $348,553. Ms. Gonzales introduced Randy Chavez, Landscaping Supervisor for the .City of Palm Desert, who provided an overview of the recommendation to extend the contract. Mr. Chavez stated Liberty had been providing maintenance services for 15 properties for the past three years, however Liberty's current term expires June 30, 2022. He informed the Commission that Liberty had two (1) year extensions remaining under the terms of agreement. Liberty requested a CPI increase and staff negotiated a 4.2% increase for the remaining two years. The final proposal was reviewed by staff and approval recommended. With that he opened for questions from the Commission. Commissioner Guinaw asked if the additional $88,000 was included in the $348,000 increase requested or a separate contingency fund: Mr. Chavez said it was in fact a separate contingency fund for unforeseen items that could arise during the year. There were no additional question and Chair Buller called for a vote. Upon a motion by Commissioner Guinaw, seconded by Commissioner Marcuse, and a 4-0 vote of the Housing Commission, the request to recommend approval of the Amendment to Contract HA38270 with Liberty Landscaping, Inc., for Landscaping Maintenance Services at the Palm Desert Housing Authority Properties for a two-year term in an annual amount not to exceed $348,953. is approved as presented. (AYES: Buller, Guinaw, Marcuse and Morrison; NOES: • None; ABSENT: Ballard). VI. REPORTS AND REMARKS A. Commissioners Reports and Remarks Chair Buller provided a brief overview on her recent participation with the Homelessness Taskforce kick-off meeting, sharing information on her role as a member. 4 PRELIMINARY MINUTES VIRTUAL HOUSING COMMISSION MEETING MARCH 2, 20~2 B. Commission Reports Senior Management Analyst, Jessica Gonzales opened the discussion with a reminder to Commissioners that the 700 Statement on Economic Interests, which was provided to all Commissioners from the City Clerk's office, should be completed by April 1, .2022. Ms. Gonzales then informed the Commission the City Council would be considering approval for our Housing Element at the March 10th City Council meeting. · ; Ms. Gonzales provided a summary of actions from the Authority Board. She advised Commission meetings would continue to be held in virtual format until further notice due to ongoing construction and improvements to the meeting roorns. Ms. Gonzales also informed that Commissioner Donna Ault's resignation from the Housing Commission effective January 25, 2022, had been forwarded and · accepted by the Housing Authority Bo~rd. She also stated the City would not be considering replacements until May as part of the broader selection process. There were no follow-up questions on any of the items. C. RPM Company Monthly Reports for December 2021 • Monthly Occupancy Status Report • Monthly Occupancy and Average Re.nt Summary • Report#1 -Monthly Occupancy and Average Rent Statement • Report#2 -Monthly Net Operating Income Statement • Palm Desert Housing Authority Project Report for January 2022 RPM Company Vice President, Teresa Vakili acknowledged the RPM reports before the Commission, stating the occupancy rate was 98.2%. Further that in December, 63 re-certifications had been conducted, 178 individuals were added I to the property waitlist and 751 individuals were contacted. She then summarized the remaining reports stating the information related to Average Median Income (AMI) would be updated in July. Commissioner Morrison asked what allowances were provided by RPM with respect to utilities. Ms. Vakili responded, stating allowances vary from $39 to $78 a month. Ms. Morrison then asked if allowances were incorporated. in the rent. Ms.Vakili stated no, the rental amounts are reduced by the utility allowance. Ms. Gonzales then stated utility allowances are established by the Housing Authority of the County of Riverside and that source is used as a basis in determining utility allowances depending on the unit size. 5 PRELIMINARY MINUTES VIRTUAL HOUSING COMMISSION MEETING D. Update on the Home Improvement Program ACTIVITY January 2022 Inquiries (Calls, Walk-Ins, Emails): Applications Provided: Applications Received Applications being processed: Eligible (Possibly meets criteria): Ineligible (Does not meet criteria): Energy Savings Assistance Programs Referrals: (Jf-!C Construction -SCE/Gas Co) 3 0 0 0 0 0 1 MARCH 2, 2022 Ms. Gonzales provided a summary of the Home Improvement Program activity, noting there were three inquiries and one referral made related to the Energy · Savings Assistance Program. VII. ADJOURNMENT With Commission concurrence, Chair Buller adjourned the meeting at 4:07 p.m. ~n&€h&t~r \?QMW1,_ ie:Jlu~ nl-'.!J .v..) ~ Collins, Recording Secretary 6