HomeMy WebLinkAbout2016-01-14MINUTES
PALM DESERT HOUSING AUTHORITY MEETING
THURSDAY, JANUARY 14, 2016
CIVIC CENTER COUNCIL CHAMBER
73510 FRED WARING DRIVE, PALM DESERT, CA 92260
I. CALL TO ORDER - 3:00 P.M.
Chairman Spiegel convened the meeting at 3:00 p.m.
II. ROLL CALL
Present:
Vice Chairman Jan C. Harnik
Member Sabby Jonathan
Member Van G. Tanner
Member Susan Marie Weber
Chairman Robert A. Spiegel
Also Present:
John M. Wohlmuth, Executive Director
Robert W. Hargreaves, City Attorney
Rudy P. Acosta, Assistant City Manager
Rachelle D. Klassen, Secretary
Russell Grance, Director of Building & Safety
Ryan Stendell, 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
Stephen Y. Aryan, Risk Manager
John Cortez, Battalion Chief, Palm Desert Fire/Riverside Co. Fire Dept./Cal Fire
Susan Trevino, Chief, Palm Desert Police/Riverside Co. Sheriffs Department
Herman Lopez, Asst. Chief, Palm Desert Police/Riverside Co. Sheriffs Department
Grace L. Mendoza, Deputy City Clerk
III. ADJOURN TO CLOSED SESSION
Request for Closed Session:
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PALM DESERT HOUSING AUTHORITY MEETING JANUARY 14, 2016
A. Conference with Real Property Negotiator pursuant to Government Code
Section 54956.8:
1) Property: APN 622-020-096
Negotiating Parties:
Agency: John M. Wohlmuth/Janet M. Moore/City of Palm Desert/
Palm Desert Housing Authority
Property Owner: Palm Desert Housing Authority
Under Negotiation: x Price x Terms of Payment
With Authority Board concurrence, Chairman Spiegel adjourned the meeting to
Closed Session at 3:00 p.m. He 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 December 10, 2015.
Rec: Approve as presented.
B. CLAIMS AND DEMANDS AGAINST THE CITY/HOUSING TREASURIES -
Warrants Dated 12/4/2015, 12/11/2015, 12/18/2015, 12/28/2015, and
1/4/2016 (Joint Consideration with the Palm Desert City Council).
Rec: Approve as presented.
Upon a motion by Harnik, second by Jonathan, and 5-0 vote of the Authority Board
(AYES: Hamik, Jonathan, Tanner, Weber, and Spiegel; NOES: None), the Consent
Calendar was approved as presented.
VI. CONSENT ITEMS HELD OVER
None
VII. RESOLUTIONS
None
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PALM DESERT HOUSING AUTHORITY MEETING JANUARY 14, 2016
VIII. NEW BUSINESS
A. REQUEST FOR AUTHORIZATION TO AWARD CONTRACT TO
GARLAND/DBS, INC., IN A TOTAL AMOUNT NOT TO EXCEED $164,935
FOR DECK REPLACEMENT AND RELATED SERVICES AT
PALM VILLAGE APARTMENTS (CONTRACT NO. HA34740A).
Management Analyst Jessica Gonzales stated this request will allow the
Authority to complete the necessary deck replacement for the Authority
owned residential rental property Palm Village Apartments. She said
Garland/DBS, Inc., has assessed the condition of the upper and lower deck
and found several areas needing to be replaced. The contract with Garland
is based on the competitively solicited pricing established through the
Government Cooperative Purchasing Organization - U.S. Communities.
Further, Garland procured bids for the labor portion from three local
contractors within the Southern California area and will be subcontracting
with Best Contracting Services, saving the Authority approximately $50,000.
The Housing Commission reviewed the recommendation at its regular
meeting of January 13 and recommended approval.
Member Weber said it was unusual that local people couldn't be found to
work with Garland.
Ms. Gonzales replied that the one found in Palm Springs did not respond to
Garland.
Member Jonathan stated that at the Housing Commission they run into this
problem frequently because the contract requires prevailing wage, and there
are very few contractors in the Desert that are willing to pay prevailing wage.
Member Weber added that bonding was also required.
Member Tanner moved to, by Minute Motion: 1) Authorize award of the subject
contract to Garland/DBS, Inc., Cleveland, Ohio, in a total amount not to exceed $164,935
(includes: proposed work in the amount of $149,941, plus 10% contingency in the amount
of $14,994 for unforeseen conditions, and permit fees estimated to be between $7,000-
$10,000) for deck replacement and related services at Palm Village, pursuant to Section
3.30.260 of the Palm Desert Municipal Code; 2) authorize the Palm Desert Housing
Authority's Legal Counsel to negotiate and finalize an agreement with Garland/DBS, Inc.;
3) authorize Executive Director to review and approve written request for use of the
contingency for unforeseen conditions and permit fees; 4) confirm participation with the
U. S. Communities Government Purchasing Alliance ("U. S.-Communities"); 5) authorize
the Palm Desert Housing Authority Chairman and/or the Executive Director to execute the
Agreement and any documents necessary to effectuate the actions taken herewith —
monies have been included in the FY 2015-2016 Palm Desert Housing Authority's
Operating Budget, in the appropriate Authority Accounts. Motion was seconded by Weber
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PALM DESERT HOUSING AUTHORITY MEETING JANUARY 14, 2016
and carried by a 5-0 vote (AYES: Harnik, Jonathan, Tanner, Weber, and Spiegel; NOES:
None).
IX. CONTINUED BUSINESS
None
X. OLD BUSINESS
A. REQUEST FOR APPROVAL OF CHANGE ORDER NO. 15 AND FOR
ACCEPTANCE OF WORK FOR CONTRACT NO. HA29410B —
CONSTRUCTION OF THE CARLOS ORTEGA VILLAS (PROJECT
NO. 825-11) (Optimus Construction, Inc., Glendale, CA).
Project Administrator Heather Buck said she was happy to bring forward the
Acceptance of Work for the Carlos Ortega Villas and deductive Change
Order No. 15 for Council's consideration. The contractor substantially
completed the work in December and the property management company
is getting the project ready for tenants to begin leasing in February.
Member Tanner expressed his appreciation for an excellent job and looked
forward to seeing the units occupied. He asked how long was the waiting
list.
Ms. Buck replied there are 400 on the waiting list for 72 units.
Member Jonathan congratulated Ms. Buck on a job extraordinarily well done,
stating the project was beautiful and it will serve the community well. He
pointed out that the contingency for the project was 10% or $1.5 million, and
it ended up using $267,000 of it. Additionally, Change Order No. 15 is a
negative adjustment; it's a credit. Therefore, not only was the project
completed beautifully and on time, it was also within or under budget.
Mr. Hargreaves stated it was even better than that, recalling for the Council
that when the contract was initially presented, there was a controversy
because this contractor bided $1.5 million lower and there were issues with
the bid. However, Council went forward with some consternation and
awarded it to this contractor, and it was a real credit to Ms. Buck that the
project has been brought in as well as it has.
Member Jonathan moved to, by Minute Motion: 1) Approve deductive Change Order
No. 15 in the total amount of ($69,084.90) to the subject contract with Optimus
Construction, Inc., Glendale, California, for Construction of Carlos Ortega Villas; 2)
authorize the Chairman to execute same; 3) authorize staff to release the remaining
landscape maintenance payments included in this contract without withholding retention.
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PALM DESERT HOUSING AUTHORITY MEETING JANUARY 14, 2016
4) accept the work as complete and authorize the City Clerk to file a Notice of Completion
for the subject project with the Riverside County Clerk and Recorder — funds are available
in Account Nos. 8718691-4400100 and 7038691-4400100 — Capital Improvements — for
this purpose. Motion was seconded by Tanner and carried by a 5-0 vote (AYES: Harnik,
Jonathan, Tanner, Weber, and Spiegel; NOES: None).
XI. PUBLIC HEARINGS
A. REQUEST FOR APPROVAL OF A GROUND LEASE AND REGULATORY
AGREEMENT WITH ALLIED AFFORDABLE HOUSING, LLC, FOR
PROPERTY LOCATED BEHIND THE DESERT ARC FACILITY, OF
APPROXIMATELY 1.83 ACRES, KNOWN AS A.P.N. 622-020-096
(CONTRACT NO. HA34970).
Ms. Moore stated that in 2011 the former Agency acquired the subject
property for Affordable Housing. As part of the transition away from the
Redevelopment Agency, the Authority was granted ownership. Over the last
couple of years, staff has looked at several projects to which funding has
been a challenge, and this site has two, it has a drainage and access
challenge. Allied Affordable Housing, LLC, the proposed Lessee on this
property, brought forward a proposed project of 36 units that will be made
available to adults with developmental disabilities. If there are not enough
adults to fill it, units will be available to affordable housing. All the units will
qualify under affordable housing regulations, but they are requesting that the
property is leased to them. They have asked for 75 years, but the law states
55 years. Staffs recommendation is 55 years with a possible extension of
20 years, but allowing Legal Counsel to review that option, because there is
a possibility that it will not be able to do 75 years. The reason the Lessee is
requesting 75 years, is because after about 10 to 15 years they can
recapitalize the project for their own process in order to continue operation.
She noted the potential Lessee was available to answer questions.
Member Jonathan noticed that in the Lease Agreement under
Paragraph 2.4.1, the term is blank. He asked if that would be filled in with 55
and the option may or may not be retained, but it would not exceed 20 years
with the total not exceeding 75 years.
Ms. Moore concurred, stating that the Authority Counsel requested that she
leave that blank until they are able to review and finalize the agreement.
Chairman Spiegel 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.
Member Jonathan moved to, by Minute Motion: 1) approve a Ground Lease and
Regulatory Agreement with Allied Affordable Housing, LLC, substantially as to form, for
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PALM DESERT HOUSING AUTHORITY MEETING JANUARY 14, 2016
property located behind Desert ARC, of approximately 1.83 acres, known as A.P.N.
622-020-096, for the purpose of obtaining funding for the development of a 36-unit
affordable community that will include accessibility for residents with special needs;
2) authorize Legal Counsel to finalize the Ground Lease and Regulatory Agreement; 3)
authorize the Chairman and/or Executive Director to execute any documents consistent
with the actions taken herewith.
Member Tanner asked if the 55-year term was included in the
recommendation.
Ms. Moore explained that the 55-year term will be added regardless, but the
reason it was left blank was because staff wants the option to extend for 20
years if Legal Counsel finds it acceptable. If the Board wants to grant the
55-years with an option for 20 more, that's what they would request and it
would be the best option.
Member Jonathan modified the motion to approve staff recommendation, including
a 55-year term, recognizing that an extension provision may or may not be included in the
final document. Motion was seconded by Tanner and carried by a 5-0 vote (AYES: Harnik,
Jonathan, Tanner, Weber, and Spiegel; NOES: None).
Vice Chairman Hamik commented this was a much needed project and
wonderful asset for the community.
XII . REPORTS, REMARKS, AND AUTHORITY BOARD ITEMS REQUIRING ACTION
A. EXECUTIVE DIRECTOR
Please refer to City Council Minutes of this date, Section XVIII - Reports and
Remarks, Item E(2)(D), for dialog regarding Chairman Spiegel's requests.
B. AUTHORITY COUNSEL
None
C. CHAIRMAN AND MEMBERS OF THE AUTHORITY
None
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PALM DESERT HOUSING AUTHORITY MEETING JANUARY 14, 2016
XIII. ORAL COMMUNICATIONS - C
None
XIV. ADJOURNMENT
With Authority Board concurrence, Chairman Spiegel adjourned the meeting at
5:32 p.m.
ATTEST:
L ' D. KLASgE-N, S CRE-rARY
PALM DESERT HOUSING AUTHORITY
ROBERT A. SPIE EL,- iAIRMAN
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