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Home My WebLink About2013-06-27MINUTES PALM DESERT HOUSING AUTHORITY MEETING THURSDAY, JUNE 27, 2013 CIVIC CENTER COUNCIL CHAMBER 73510 FRED WARING DRIVE, PALM DESERT, CA 92260 I. CALL TO ORDER - 3:00 P.M. Chairman Hamik convened the meeting at 3:01 p.m. II. ROLL CALL Present: Vice Chairman Jean M. Benson Member Robert A. Spiegel Member Van G. Tanner Member Susan Marie Weber Chairman Jan C. Hamik Also Present: John M. Wohlmuth, Executive Director David J. Erwin, City Attorney Rachelle D. Klassen, Secretary Bo Chen, City Engineer Russell Grance, Director of Building & Safety Lauri Aylaian, Director of Community Development Martin Alvarez, Director of Economic Development Janet M. Moore, Director of Housing Mark Greenwood, Director of Public Works J. Luis Espinoza, Assistant Finance Director Clayton von Helf, Information Systems Manager Ryan Stendell, Senior Management Analyst Bill Sullivan, Asst. Chief, Palm Desert Police/Riverside Co. Sheriffs Dept. Grace L. Mendoza, Deputy City Clerk III. ADJOURN TO CLOSED SESSION Request for Closed Session: A. Conference with Real Property Negotiator pursuant to Government Code Section 54956.8: MINUTES PALM DESERT HOUSING AUTHORITY MEETING JUNE 27, 2013 1) Property: 74719 King Fisher Circle (APN 624-440-027), Palm Desert Negotiating Parties: Agency: John M. Wohlmuth/Janet M. Moore/City of Palm Desert/ Palm Desert Housing Authority Property Owner: Jerry White and Diana M. Corica Under Negotiation: x Price Terms of Payment 2) Property: 42148 Verdin Lane (APN 624-440-003), Palm Desert Negotiating Parties: Agency: John M. Wohlmuth/Janet M. Moore/City of Palm Desert/ Palm Desert Housing Authority Property Owner: Justin E. and Patricia Mansker Under Negotiation: x Price x Terms of Payment With Authority Board concurrence, Chairman Hamik adjourned the meeting to Closed Session at 3:02 p.m. She reconvened the meeting at 4:01 p.m. IV. RECONVENE REGULAR MEETING - 4:00 P.M. A. REPORT ON ACTION FROM CLOSED SESSION. None V. CONSENT CALENDAR A. MINUTE$ of the Housing Authority Meeting of June 13, 2013. Rec: Approve as presented. B. CLAIMS AND DEMAND$ AGAINST THE AUTHORITY TREASURY - Warrant Nos. 233HA and 237HA. Rec: Approve as presented C. HOUSING COMMISSION MINUTES for the Meeting of May 8, 2013. Rec: Receive and file. 2 MINUTES PALM DESERT HOUSING AUTHORITY MEETING JUNE 27, 2013 D. REQUEST FOR AUTHORIZATION to Use Named Vendors for Purposes of Providing Recurring, Routine Services, Supplies, and Maintenance to the Housing Authority -owned Residential Rental Properties. Rec: By Minute Motion, authorize the use of vendors on the accompanying staff report's Palm Desert Housing Authority Vendor List for the purposes of providing recurring, routine services, supplies, and maintenance to the Housing Authority -owned Residential Rental Properties, pursuant to Palm Desert Municipal Code Section 3.32.110, effective July 1, 2013. Upon a motion by Spiegel, second by Benson, and 5-0 vote of the Authority Board, the Consent Calendar was approved as presented. VI. CONSENT ITEMS HELD OVER None VII. RESOLUTIONS None VIII. NEW BUSINESS A. REQUEST FOR APPROVAL, OF DOWN PAYMENT ASSISTANCE LOANS FROM ANY AVAILABLE FUNDING SOURCE RESTRICTED FOR THIS PURPOSE IN AN AMOUNT NECESSARY TO SECURE AN AFFORDABLE HOUSING COST ASSOCIATED WITH A DIRECT SALE IN DESERT ROSE (JOINT CONSIDERATION WITH THE PALM DESERT CITY COUNCIL). Management Analyst Jessica Gonzales noted the staff report and offered to answer any questions. Councilman/Member Spiegel moved to, by Minute Motion: 1) Approve a silent down payment assistance loan associated with a direct sale in Desert Rose, not to exceed 40% of the sales price of the home to ensure an affordable housing cost pursuant to California Health and Safety Code Section 50052.5, for a qualified low- or moderate -income household from any available funding source restricted for such purpose (Low and Moderate Income Housing Asset Fund, BEGIN Fund, and Housing Mitigation); 2)authorize the use of the Desert Rose Sales Program and documents, including the restrictive covenant and loan documents for the applicable funding source, and authorize the Mayor to execute; 3) authorize the Director of Finance to draw monies from the relative funds to facilitate the transaction; 4) authorize the Authority Chairman and/or the Authority's Executive Director, or his designee, to finalize and execute any ancillary documents necessary to effectuate the actions taken herewith — monies are available in the appropriate account in the Low and Moderate Income Housing Asset Fund, BEGIN Fund, and Housing Mitigation Fund. Motion was seconded by Benson and carried by a 5-0 vote. 3 MINUTES PALM DESERT HOUSING AUTHORITY MEETING JUNE 27, 2013 B. REQUEST FOR APPROVAL OF DOWN PAYMENT ASSISTANCE LOANS FROM ANY AVAILABLE FUNDING SOURCE RESTRICTED FOR THIS PURPOSE IN AN AMOUNT NECESSARY TO SECURE AN AFFORDABLE HOUSING COST ASSOCIATED WITH DIRECT SALES IN FALCON CREST (JOINT CONSIDERATION WITH THE PALM DESERT CITY COUNCIL). Councilman/Member Spiegel moved to, by Minute Motion: 1) Approve silent down payment assistance loans associated with direct sales in Falcon Crest, not to exceed $80,000 per property in accordance with the Falcon Crest Sales Program and documents, to ensure an affordable housing cost pursuant to California Health and Safety Code Section 50052.5, for qualified low- or moderate -income households from any available funding source restricted for such purpose (Low and Moderate Income Housing Asset Fund, BEGIN Fund, and Housing Mitigation); 2) authorize the use of the Falcon Crest Sales Program and documents, including the restrictive covenant and loan documents for the applicable funding source, and authorize the Mayor to execute; 3) authorize the Director of Finance to draw monies from the relative funds to facilitate the transaction; 4) authorize the Authority Chairman and/or the Authority's Executive Director, or his designee, to finalize and execute any ancillary documents necessary to effectuate the actions taken herewith — monies are available in the appropriate account in the Low and Moderate Income Housing Asset Fund, BEGIN Fund, and Housing Mitigation Fund. Motion was seconded by Benson and carried by a 5-0 vote. IX. CONTINUED BUSINESS None X. OLD BUSINESS None XI. PUBLIC HEARINGS A. REQUEST FOR APPROVAL OF THE PROPOSED SALE OF THE PROPERTIES LOCATED AT 42071 VERDIN LANE (APN 624-431-029), 42253 VERDIN LANE (APN 624-431-016), 74478 FALCON LANE (APN 624-430-018), AND 74670 KING FISHER CIRCLE (APN 624-440-019), PALM DESERT, PURSUANT TO HEALTH AND SAFETY CODE SECTION 33433(c) (JOINT CONSIDERATION WITH THE PALM DESERT CITY COUNCIL). Management Analyst Jessica Gonzales stated State law required any property that is being proposed for sale to be brought before the City Council as part of a public hearing. The public hearing was noticed for a two -week period and no comments were received. 4 MINUTES PALM DESERT HOUSING AUTHORITY MEETING JUNE 27, 2013 Mayor/Chairman Hamik declared the public hearing open and invited public testimony FAVORING or OPPOSING this matter. With no public testimony offered, she declared the public hearing closed. Councilman/Member Spiegel moved to: 1) Waive further reading and adopt Resolution No. HA - 56, approving the sale of the properties pursuant to the attached draft Purchase and Sale Agreement at the fair market value of $220,000 each; 2) City Council and Housing Authority Board, by Minute Motion, approve silent homebuyer assistance loans in amounts that do not exceed $80,000 in total for each homebuyer to ensure an affordable housing cost for a qualified low- or moderate -income household from any available funding source restricted for such purpose (BEGIN, Housing Mitigation, Agency/Housing Authority Program Income); 3) authorize the payment of transaction costs from the sale proceeds for the purpose of repairs required for closing and fees customary to real estate transactions in Riverside County, including escrow, title, FHA fees, inspections, vermin eradication, commissions, and disclosures; 4) authorize the use of the Falcon Crest Sales Program and documents, including the restrictive covenant and loan documents for the applicable funding source, in their substantial form; 5) authorize the Mayor, Authority's Chairman, and/or Authority's Executive Director or his designee to finalize and execute the Purchase and Sale Agreements and any ancillary documents necessary to effectuate the sales and actions taken herewith. Motion was seconded by Tanner and carried by a 5-0 vote. B. REQUE$T FOR APPROVAL OF THE PROPOSED SALE OF THE PROPERTIES LOCATED AT 74642 KING FISHER CIRCLE (APN 624-440-017) AND 42197 VERDIN LANE (APN 624-431-020), PALM DESERT, PURSUANT TO HEALTH AND SAFETY CODE SECTION 33433(c) (JOINT CONSIDERATION WITH THE PALM DESERT CITY COUNCIL). Management Analyst Jessica Gonzales stated the proposed sale was noticed as a public hearing for a two -week period and no comments were received. Mayor/Chairman Harnik declared the public hearing open and invited public testimony FAVORING or OPPOSING this matter. With no public testimony offered, she declared the public hearing closed. Councilman/Member Spiegel moved to: 1) Waive further reading and adopt Resolution No. HA - 57, approving the sale of the properties pursuant to the attached draft Purchase and Sale Agreement at the fair market value of $225,000 each; 2) City Council and Housing Authority Board, by Minute Motion, approve silent homebuyer assistance loans in amounts that do not exceed $80,000 in total for each homebuyer to ensure an affordable housing cost for a qualified low- or moderate -income household from any available funding source restricted for such purpose (BEGIN, Housing Mitigation, Agency/Housing Authority Program Income); 3) authorize the payment of transaction costs 5 MINUTES PALM DESERT HOUSING AUTHORITY MEETING JUNE 27, 2013 from the sale proceeds for the purpose of repairs required for closing and fees customary to real estate transactions in Riverside County, including escrow, title, FHA fees, inspections, vermin eradication, commissions, and disclosures; 4) authorize the use of the Falcon Crest Sales Program and documents, including the restrictive covenant and loan documents for the applicable funding source, in their substantial form; 5) authorize the Mayor, Authority's Chairman, and/or Authority's Executive Director or his designee to finalize and execute the Purchase and Sale Agreements and any ancillary documents necessary to effectuate the sales and actions taken herewith. Motion was seconded by Benson and carried by a 5-0 vote. C. CONSIDERATION OF THE ADOPTION OF THE CITY MANAGER'S AND EXECUTIVE DIRECTOR'S PROPOSED FINANCIAL PLAN FOR FISCAL YEAR 2013-2014 (JOINT CONSIDERATION WITH THE PALM DESERT CITY COUNCIL). Mr. Wohlmuth stated this was the 2013/2014 Fiscal Year Budget Plan, outlining anticipated Operating expenses to be $46,508,694, General Fund revenues $46,000,000, and estimated revenues $46,517,500, which leaves a balance of $9,000 between expenditures and revenues. He said 47% of the budget is for Police and Fire, which slightly inceases every year. The budget maintained the City's policy of a 1-year reserve, having $62 million in the account. He believed funds will be added to the General Fund at the end of this fiscal year with Transient Occupancy Tax (TOT) revenues being up in April and May 2013. The direction in preparing the budget was to minimize the impact to Palm Desert's services, minimize the number of taxes in fee adjustments, and meeting priorities discussed in the study sessions about maintaining roads and parks, and advertising and promotions to the standards of Palm Desert. He thanked Assistant Finance Director Luis Espinoza, since Mr. Gibson was on vacation, and the Finance staff for their hard work in preparing this budget. He expressed appreciation to all Department Heads for their part in preparing the budget, which has been difficult due to downsizing both in operations and employees in the last four years. He was happy to propose this budget to the City Council, which is balanced and includes all the City's priorities. He went on to say the economy was coming back, so hopefully the City can come out of the cutting mode and into being able to do exciting things in Palm Desert as it moves forward. Councilmember/Member Weber thanked everyone for all their hard work, because it had been an interesting past year. Mayor/Chairman Hamik declared the public hearing open and invited public testimony FAVORING or OPPOSING this matter. With no public testimony offered, she declared the public hearing closed. 6 MINUTES PALM DESERT HOUSING AUTHORITY MEETING JUNE 27, 2013 Councilman/Member Tanner moved to: 1) Waive further reading and adopt City Council Resolution No. 2013 - 4Z, adopting a City Program and Financial Plan for the Fiscal Year July 1, 2013, through June 30, 2014; 2) waive further reading and adopt City Council Resolution No. 2013 - 48, establishing the Appropriations Limit for the Fiscal Year 2013-2014; 3) waive further reading and adopt Housing Authority Resolution No. HA - 58, adopting a Housing Authority Program and Financial Plan for the Fiscal Year July 1, 2013, through June 30, 2014; 4) waive further reading and adopt City Council Resolution No. 2013 - 49, setting the Salary Schedule, Salary Ranges, and Allocated Classifications for Fiscal Year 2013-2014; 5) by Minute Motion, approve Out -of -State Travel as listed in the accompanying staff report memo for same. Motion was seconded by Weber and carried by a 5-0 vote. Mr. Wohlmuth noted the approval included all the resolutions attached. Councilman Tanner concurred. Mayor/Chairman Harnik thanked everyone for their hard work, stating she knew it was a difficult process, which included three study sessions, and that was just a small portion of what was done to get this budget in order. She went on to say it was why Director of Finance Paul Gibson received a well -deserved award from the Chamber of Commerce for his work on the budget and dissolution of Redevelopment. XII . REPORTS, REMARKS, AND AUTHORITY BOARD ITEMS REQUIRING ACTION A. EXECUTIVE DIRECTOR None B. AUTHORITY COUNSEL None C. CHAIRMAN AND MEMBERS OF THE AUTHORITY None XIII. ORAL COMMUNICATIONS - C None 7 MINUTES PALM DESERT HOUSING AUTHORITY MEETING JUNE 27, 2013 XIV. ADJOURNMENT With Authority Board concurrence, Chairman Hamik adjoumed the meeting at 5:40 p.m. ATTEST: RAHELLE D. KLASSEN, S RETARY PALM DESERT HOUSING AUTHORITY 8