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Home My WebLink About2015-09-24MINUTES PALM DESERT HOUSING AUTHORITY MEETING THURSDAY, SEPTEMBER 24, 2015 CIVIC CENTER COUNCIL CHAMBER 73510 FRED WARING DRIVE, PALM DESERT, CA 92260 I. CALL TO ORDER - 3:00 P.M. Chairman Weber convened the meeting at 3:01 p.m. II. ROLL CALL Present: Member Jan C. Hamik Member Sabby Jonathan Vice Chairman Robert A. Spiegel Member Van G. Tanner Chairman Susan Marie Weber 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 Frankie Riddle, Director of Special Programs Bo Chen, City Engineer Lt. John Shields, Palm Desert Police/Riverside County Sheriff's Department Sgt. David Adams, Palm Desert Police/Riverside County Sheriffs Department Grace L. Mendoza, Deputy City Clerk III. ADJOURN TO CLOSED SESSION Reauest for Closed Session: MINUTES PALM DESERT HOUSING AUTHORITY MEETING SEPTEMBER 24, 2015 A. Conference with Real Property Negotiator pursuant to Government Code Section 54956.8: *MP 1) Property: 1.83 Acres Located behind Desert Arc (APN 622-020-096) Negotiating Parties: Agency: John M. Wohlmuth/Janet M. Moore/ Palm Desert Housing Authority Property Owner: Palm Desert Housing Authority Under Negotiation: x Price x Terms of Payment With Authority Board concurrence, Chairman Weber adjourned the meeting to Closed Session at 3:03 p.m. She reconvened the meeting at 4:02 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 September 10, 2015. Rec: Approve as presented. B. CLAIMS AND DEMANDS AGAINST THE CITY/HOUSING TREASURIES - Warrants Dated 6/19/2015, 6/26/2015 - (2), 7/2/2015, 9/4/2015, and 9/11/2015 (Joint Consideration with the Palm Desert City Council). Upon a motion by Spiegel, second by Tanner, and 5-0 vote of the Authority Board (AYES: Hamik, Jonathan, Spiegel, Tanner, and Weber; NOES: None), the Consent Calendar was approved as presented. VI. CONSENT ITEMS HELD OVER None 2 MINUTES PALM DESERT HOUSING AUTHORITY MEETING SEPTEMBER 24, 2015 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 — 43820 BLUEBERRY LANE (APN 634-061-037) (JOINT CONSIDERATION WITH THE PALM DESERT CITY COUNCIL). Ms. Moore stated staff was able to facilitate a direct sale from an interested seller and a qualified buyer. However, they do need down -payment assistance, and Council's approval of this item will provide that assistance. Mayor Pro TemNice Chairman 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 ($144,630) 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 payment of the transaction costs, if necessary, 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, up to a maximum of $3,500; 3) authorize use of the Desert Rose Sales Program and documents, including the restrictive covenant and loan documents for the applicable funding source, and authorize Mayor to execute; 4) authorize Director of Finance to draw monies from the relative funds to facilitate the transaction; 5) authorize 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 Tanner and carried by a 5-0 vote (AYES: Hamik, Jonathan, Spiegel, Tanner, and Weber; NOES: None). 3 MINUTES PALM DESERT HOUSING AUTHORITY MEETING SEPTEMBER 24, 2015 B. REQUEST FOR APPROVAL OF THE FISCAL YEAR BUDGET AMENDMENT TO PROVIDE TRANSFER, APPROPRIATION, AND ESTIMATED REVENUES OF UNOBLIGATED FUNDS FROM THE GENERAL FUND, EQUIPMENT REPLACEMENT FUND, PRESIDENTS PLAZA I, RETIREE HEALTH FUND, HOUSING ASSET FUND, PROPOSITION A FIRE FUND, AIR QUALITY FUND, PALM DESERT RECREATIONAL FACILITIES CORPORATION FUND, DESERT WILLOW, ART IN PUBLIC PLACES, PUBLIC SAFETY GRANT FUND, AND THE BUILDING MAINTENANCE FUND AS OF JUNE 30, 2015 (JOINT CONSIDERATION WITH THE PALM DESERT CITY COUNCIL). Mr. Gibson stated that for the General Fund the balance is $51.5 million in revenue and around $48 million in expenditures, leaving a $3.5 million positive fund balance. Therefore, he recommended transferring $2.5 to three funds, Equipment Replacement, Building Maintenance, the Retiree Health Fund, and the remaining balance will go into the Reserve Fund. He noted there were a number of Department adjustments to the actual costs to the budget. Councilman/MemberJonathan said he noticed a $250,000 decrease in sales tax, questioning what attributed to that decrease. Mr. Gibson said major retail stores were down from the prior year is what he believed was the main factor, without giving names of which stores. Further responding, he said the remaining $1 million went to the General Fund, which brought the General Fund Reserve to $67 million. Councilman/Member Jonathan asked why the $2.5 million was disbursed as proposed, when there are so many places it could have gone. Mr. Gibson explained the Equipment Replacement Fund has a lot of items that have to be covered, and even though the Fund has a lot of money, the City hasn't bought City vehicles in a long time, probably 20 years. The City has a big ladder truck, which eventually has to be replaced that will cost about $2 million. Also, all the computer equipment has been added to this Fund, and every five years, they need to be replaced because they become obsolete. In the Building Maintenance Fund, the City never has enough money, because buildings always require replacement of A/C's and roofing, they need to be painted, or they require modifications inside the building. With the Retiree Health Fund, there has been a pronouncement that has come out, which staff is still debating with the auditors, that can affect the Fund. He said even though the City has capped the number of employees that can qualify, the auditor says the amount of unfunded has grown; however, the City auditor disagrees. So at this point, out of an abundance of caution, he was putting more money in that Fund to cover it. He hoped 4 MINUTES PALM DESERT HOUSING AUTHORITY MEETING SEPTEMBER 24, 2015 that in a month he will have an answer he liked. Further responding, he said that if it turned out it was unnecessary, the funds can be transferred back to the General Fund. Councilman/Member Jonathan asked about the process that was followed to make the determination on how the $2.5 million would be allocated. Mr. Gibson replied he made his own determination. Councilman/Member Jonathan stated he wasn't challenging Mr. Gibson, as he understood some expenditures are fixed; however, the General Fund was something the Council controlled. He said the responsibility rests with Council to determine how expenditures are made, and do it in the same manner and very elaborate budgeting process it went through that started with staff and ended with Council's approval. He said it would have been his preference to be a part of that decision making with perhaps a study session to understand the recommendation, but certainly have input. Mr. Gibson offered that going forward it can be done. Councilman/Member Jonathan said he would defer to the rest of the Council if it wanted to accept the proposed recommendation, but he did trust Mr. Gibson and his professional ability. He said that if his peers agree, he suggested having a more collaborative process should the City be fortunate enough to be in this position again. Mayor Pro TemNice Chairman Spiegel moved to waive further reading and adopt: 1) City Council Resolution No. 2015 - 84, amending the Fiscal Year 2014-2015 Budget as a result of year-end adjustments; 2) Housing Authority Resolution No. HA - 77, amending the Fiscal Year 2014-2015 Budget as a result of year-end adjustments. Motion was seconded by Harnik and carried by a 5-0 vote (AYES: Harnik, Jonathan, Spiegel, Tanner, and Weber; NOES: None). IX. CONTINUED BUSINESS None X. OLD BUSINESS None XI. PUBLIC HEARINGS None 5 MINUTES PALM DESERT HOUSING AUTHORITY MEETING SEPTEMBER 24, 2015 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 XIV. ADJOURNMENT On a motion by Spiegel, second by Tanner, and unanimous consent of the Authority Board, Chairman Weber adjourned the meeting at 5:11 p.m. ATTEST: ELLE D. KL • EN, ECRETARY PALM DESERT HOUSING AUTHORITY - ( - - -.). J- SUSAN MARIE WEBER, CHAIRMAN 6