HomeMy WebLinkAbout2014-08-28MINUTES
PALM DESERT HOUSING AUTHORITY MEETING
THURSDAY, AUGUST 28, 2014
CIVIC CENTER COUNCIL CHAMBER
73510 FRED WARING DRIVE, PALM DESERT, CA 92260
I. CALL TO ORDER - 3:00 P.M.
Chairman Tanner convened the meeting at 3:01 p.m.
II. ROLL CALL
Present:
Member Jean M. Benson
Member Jan C. Hamik
Member Robert A. Spiegel
Vice Chairman Susan Marie Weber
Chairman Van G. Tanner
Also Present:
John M. Wohlmuth, Executive Director
David J. Erwin, City Attorney
Rudy P. Acosta, Assistant City Manager
Rachelle D. Klassen, Secretary
Russell Grance, Director of Building & Safety
Lauri Aylaian, Director of Community Development
Martin Alvarez, Director of Economic Development
Paul S. Gibson, Director of Finance/City Treasurer
Janet M. Moore, Director of Housing
Mark Greenwood, Director of Public Works
Stephen Y. Aryan, Risk Manager
Casey Hartman, Battalion Chief, Palm Desert Fire/Riverside Co. Fire/Cal Fire
Bill Sullivan, Asst. Chief, Palm Desert Police/Riverside Co. Sheriffs Dept.
Grace L. Mendoza, Deputy City Clerk
11I. ADJOURN TO CLOSED SESSION
Reauest for Closed Session:
None
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PALM DESERT HOUSING AUTHORITY MEETING AUGUST 28, 2014
With Authority Board concurrence, Chairman Tanner adjourned the meeting to
Closed Session of the City Council and Successor Agency to the Palm Desert
Redevelopment Agency at 3:10 p.m. He reconvened the meeting at 4:00 p.m.
IV. RECONVENE REGULAR MEETING - 4:00 P.M.
A. REPORT, ON ACTION FROM CLOSED SESSION.
None
V. CONSENT CALENDAR
A. MINUTES, of the Housing Authority Meeting of July 10, 2014.
Rec: Approve as presented.
B. CLAIMS AND DEMANDS AGAINST THE AUTHORITY TRF,ASURY -
Warrant Nos. 6HA, 11 HA, 15HA, 19HA, 28HA, 32HA, 37HA, 9-Housing,
27-Housing, 36-Housing, 2HAF, 16HAF, 20HAF, 23HAF, 29HAF, 33HAF,
38HAF, and 41 HAF.
Rec: Approve as presented.
C. HOUSING COMMISSION MINUTES, for the Meeting of June 11, 2014.
Rec: Receive and file.
D. REQUEST FOR RATIFICATION of the Executive Director's Approval of
Amendment No. 1 to Contract for the Design of the Landscape and
Demolition Plans for the Backfill of Pond No. 8 at One Quail Place (Contract
No. HA33070A).
Rec: By Minute Motion, ratify the Executive Director's approval of
Amendment No. 1 in an amount not to exceed $1,200 to the subject
contract with Ray Lopez and Associates, Vista Santa Rosa,
Califomia, related to the design of landscape and demolition plans for
the backfill of Pond No. 8 at One Quail Place — funds are available in
the Housing Authority Replacement Reserve Fund.
Upon a motion by Benson, second by Harnik, and 4-0-1 vote (AYES: Benson,
Harnik, Weber, and Tanner; NOES: None; ABSTAINING: Spiegel), the Consent Calendar
was approved as presented.
VI. CONSENT ITEMS HELD OVER
None
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PALM DESERT HOUSING AUTHORITY MEETING AUGUST 28, 2014
VII. RESOLUTIONS
A. RESOLUTION NQ. HA - 66 - A RESOLUTION OF THE PALM DESERT
HOUSING AUTHORITY, AMENDING THE ADMINISTRATIVE PLAN TO
INCORPORATE EXHIBIT "G" - SMOKE -FREE POLICY FOR THE
PALM DESERT HOUSING AUTHORITY, PERTAINING TO THE
MANAGEMENT AND OPERATION OF THE AFFORDABLE HOUSING
RENTAL UNITS.
Ms. Moore stated that in keeping with the City's Ordinance, in order to
designate units in the Authority as "Smoke Free" there needs to be an
implementation policy to do so. There are a fair number of requests from
tenants requesting a smoke -free unit. Staff is trying to conduct an
implementation over the next five years to designate units as they become
vacant. Staff will try to designate specific buildings as nonsmoking where
appropriate. Staff sent out an informal survey to the tenants over a year ago
asking for their input, but not everyone responded. However, a percentage
of input was received, and 60% of the folks that did respond asked for a
smoke -free unit; 20% indicated they didn't care; and 12% was opposed.
Chairman Tanner asked if the policy included pipe cigars and any type of
tobacco.
Ms. Moore answered yes
Member Spiegel asked if there will be a percentage of units where tenants
will be allowed to smoke.
Ms. Moore explained a certain number of units within a complex will be
designated as nonsmoking. She said there are designated smoking units in
the larger complexes, some of the smaller complexes will become smoke
free, and any new complex such as the Carlos Ortega Villas will be 100%
smoke free from its inception.
Member Spiegel moved to, waive further reading and adopt Resolution No. HA - 66.
Motion was seconded by Hamik and carried by a 5-0 vote (AYES: Benson, Hamik,
Spiegel, Weber, and Tanner; NOES: None).
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PALM DESERT HOUSING AUTHORITY MEETING AUGUST 28, 2014
VIII. NEW BUSINESS
A. REQUE$T FOR APPROVAL OF AN EXTENSION OF THE AGREEMENT
FOR LEGAL SERVICES BY AND AMONG THE SUCCESSOR AGENCY TO
THE PALM DESERT REDEVELOPMENT AGENCY, PALM DESERT
HOUSING AUTHORITY, AND CITY OF PALM DESERT, AND THE FIRM
OF RICHARDS, WATSON & GERSHON (CONTRACT NO. SA28881)
(JOINT CONSIDERATION WITH THE PALM DESERT CITY COUNCIL AND
THE SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT
AGENCY).
Mr. Acosta stated the City/Agency has had a long-standing relationship with
Richards, Watson & Gershon (RW&G) for services with the former
Redevelopment Agency and now with the Successor Agency. Their contract
is about to expire at the end of September 2014. The City Manager thought
it would be prudent to bring the Agreement before the CounciVAgency at this
time. The proposed Agreement is for three -years with the option of two
1-year extensions at the authorization of the City Manager. He said RW&G
offered to perform the same services and continue on with the dissolution
process of the former Redevelopment Agency, and now as the Successor
Agency, retaining the same billing rates as in the past five years. He noted
this item was in joint consideration with the Housing Authority.
Councilman/Director/Member Spiegel stated that with the dissolution of
Redevelopment, he wondered if Best, Best and Krieger could pick this
contract up.
Mr. Acosta said he couldn't speak for City Attorney Erwin, but his suspicion
was that the expertise of Best, Best and Krieger (BB&K) has not been in
Redevelopment, as with current issues with and involving the dissolution of
Redevelopment, Department of Finance (DOF), and Western Center for Law
& Poverty. Therefore, staff believes it's in the best interest of the City to
continue with the institutional capacity of RW&G.
Councilman/Director/Member Spiegel asked the same question of Mr. Erwin.
Mr. Erwin answered yes, but there are a number of ongoing issues that
Richards, Watson & Gershon is dealing with, and if there were to be a
transition, it ought to be over a period of time as opposed to a complete cut
off. He said it was up to the Council, but certainly, RW&G is still in the
middle of a lot of things; however, Best, Best and Krieger did have the
capability of handing the contract.
Mr. Wohlmuth said the way that AB1 X26 is prepared, the law that dissolves
redevelopment agencies, the City has approximately three years left where
it has an Oversight Board, and post three years from now, the County takes
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PALM DESERT HOUSING AUTHORITY MEETING AUGUST 28, 2014
over the Oversight Board for the entire County boundaries. He said there
are two important issues involved as to the difference between BB&K and
RW&G. One is RW&G has been helping with the dissolution of the
Redevelopment Agency providing excellent legal advice, and the City is
currently in a legal battle with regards to the stipulation on the Housing
Funds that they are handling. To answer Councilman Spiegel's question, he
would see RW&G doing an excellent job of handling the dissolution of
Redevelopment over the next three years, and post that, transition into a one
City contract as redevelopment went away. However, redevelopment is
slowly going away in the State of Califomia, but it hasn't happened, because
it doesn't happen overnight. Staff will continue to dispose land and handle
the Recognized Obligation Payment Schedule (ROPS) on a six-month and
1-year basis. Further responding, he said Richards, Watson Gershon's
contract also has a 30-day notice opt out.
Councilman/Director/Member Spiegel moved to, by Minute Motion: 1) Approve
extension of Contract No. SA28881 (formerly known as Contract No. R28880) - Agreement
for Legal Services to the City of Palm Desert, Successor Agency to the Palm Desert
Redevelopment Agency, and Palm Desert Housing Authority with Richards, Watson &
Gershon, substantially as to form; 2) authorize the City Manager/Executive Director and
City of Palm Desert to finalize the Agreement Extension with Richards, Watson & Gershon,
substantially as to form; 3) authorize the Mayor/Chair/Chairman to execute the finalized
Agreement. Motion was seconded by Benson.
Councilmember/Director/Member Benson stated the Council owed it to
RW&G for getting the clearance from the State for Palm Desert's
Redevelopment, because there are a lot of Coachella Valley cities that
haven't received their clearance yet, and they are unable to move forward.
She said it was RW&G's foresight to condition all properties and financing
through the State, obtaining a clean bill to work on and getting the approval
fast.
Councilmember/Director/Member Hamik confirmed the Agreement includes
a termination with and without cause. She said RW&G has done a great job
in avoiding problems and the dissolution of Redevelopment was an issue
that came up. She said the process has been difficult, but RW&G has done
an excellent job of guiding the City and Council through it, crediting them for
where Palm Desert stood today.
Mayor/Chair/Chairman Tanner stated both the law firm and staff are to be
complemented for getting Palm Desert approved, allowing the City to move
forward with selling the properties.
Mayor/Chair/ChairmanTanner called for the vote, and the motion carried by a 5-0
vote (AYES: Benson, Harnik, Spiegel, Weber, and Tanner; NOES: None).
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PALM DESERT HOUSING AUTHORITY MEETING AUGUST 28, 2014
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 A DIRECT SALE IN DESERT ROSE,
75326 KELSEY COURT (JOINT CONSIDERATION WITH THE
PALM DESERT CITY COUNCIL).
Ms. Moore stated staff was able to facilitate a direct sale within the
community, and staff is requesting authorization to provide down payment
assistance to a qualified buyer.
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 Califomia
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 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 Hamik and carried by a 5-0 vote (AYES: Benson, Hamik, Spiegel,
Weber, and Tanner; NOES: None).
IX. CONTINUED BUSINESS
A. MINUTES, OF THE HOUSING AUTHORITY MEETING OF JUNE 26, 2014
(Continued from the meeting of July 10, 2014).
Upon a motion by Spiegel, second by Hamik, and 5-0 vote of the Authority Board
(AYES: Benson, Harnik, Spiegel, Weber, and Tanner; NOES: None), the Minutes of the
Meeting of June 26, 2014, was approved as presented.
X. OLD BUSINESS
None
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PALM DESERT HOUSING AUTHORITY MEETING AUGUST 28, 2014
XI. PUBLIC HEARINGS
A. REQUEST FOR APPROVAL OF PROPOSED SALE OF THE PROPERTIES
LOCATED AT 42190 GOLDEN EAGLE LANE (APN 624-431-011),
74572 KING FISHER CIRCLE (APN 624-440-012), 42197 VERDIN LANE
(APN 624-431-020), AND 74642 KING FISHER CIRCLE
(APN 624-440-017), PALM DESERT, PURSUANT TO HEALTH AND
SAFETY CODE SECTION 33433(c) (JOINT CONSIDERATION WITH THE
PALM DESERT CITY COUNCIL).
Ms. Moore stated that whenever the Housing Authority is to sell any property
that is within its inventory, it has to conduct a public hearing in order to do so.
She said one of the homes is under contract, but it's pending this hearing.
She noted there is now interest in Palm Desert's communities, and staff is
looking forward to getting them sold.
Mayor/Chairman Tanner declared the public hearing open and invited public
testimony FAVORING or OPPOSING this matter. With no public testimony offered,
he declared the public hearing closed.
Councilman/Member Spiegel moved to: 1) Waive further reading and adopt
Resolution No. HA - 65,, approving the sale of the properties, pursuant to the attached draft
Purchase and Sale Agreements, for up to $200,000 each for 42190 Golden Eagle Lane
and 74572 King Fisher Circle, and up to $225,000 each for 42197 Verdin Lane and 74642
King Fisher Circle, depending on the terms of the negotiated sale; 2) By Minute Motion:
a) approve silent homebuyer assistance loans for each home in amounts that do not
exceed 40% of the sales price 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); b) authorize payment of the transaction costs from the sale proceeds
for the purpose of repairs required for closing, fees customary to real estate transactions
in Riverside County, including escrow, title FHA fees, inspections, vermin eradication,
commissions, and disclosures; c) 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; d) 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 Harnik and carried by a 5-0 vote (AYES:
Benson, Harnik, Spiegel, Weber, and Tanner; NOES: None).
XII . REPORTS, REMARKS, AND AUTHORITY BOARD ITEMS REQUIRING ACTION
A. EXECUTIVE DIRECTOR
None
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PALM DESERT HOUSING AUTHORITY MEETING AUGUST 28, 2014
B. AUTHORITY COUNSEL
None
C. CHAIRMAN AND MEMBERS OF THE AUTHORITY
None
XIII. ORAL COMMUNICATIONS - C
None
XIV. ADJOURNMENT
On a motion by Spiegel, second by Weber, and unanimous vote of the Authority
Board, Chairman Tanner adjoumed the meeting at 6:19 p.m.
ATTEST:
-- — -- e-(xs-
RA HELLS D. KLASSEN, S CRE1`ARY
PALM DESERT HOUSING AUTHORITY
VAN G. TANNER, CHAIRMAN
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