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HomeMy WebLinkAbout2018-08-23MINUTES PALM DESERT HOUSING AUTHORITY MEETING THURSDAY, AUGUST 23, 2018 CIVIC CENTER COUNCIL CHAMBER 73510 FRED WARING DRIVE, PALM DESERT, CA 92260 I. CALL TO ORDER - 3:00 P.M. Chairman Jonathan convened the meeting at 3:00 p.m. II. ROLL CALL Present: Member Jan C. Harnik Member Kathleen Kelly Member Gina Nestande Vice Chairman Susan Marie Weber Chairman Sabby Jonathan Also Present: Lauri Aylaian, Executive Director Carlos Campos, Acting City Attorney Rachelle D. Klassen, Secretary Lori Carney, Director of Administrative Services Russell Grance, Director of Building & Safety Ryan Stendell, Director of Community Development Martin Alvarez, Director of Economic Development Janet M. Moore, Director of Finance/City Treasurer Tom Garcia, Director of Public Works Stephen Y. Aryan, Risk Manager John Cortez, Battalion Chief, Palm Desert Fire/Riverside Co. Fire Dept./Cal Fire Lt. Matt Martello, Asst. Chief, Palm Desert Police/Riverside Co. Sheriff's Dept. Grace L. Rocha, Deputy City Clerk III. ADJOURN TO CLOSED SESSION Reauest for Closed Session: None MINUTES PALM DESERT HOUSING AUTHORITY MEETING AUGUST 23, 2018 With Housing Authority Board concurrence, Chairman Jonathan adjourned the meeting to Closed Session at 3:01 p.m. He 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. MINUTES of the Housing Authority Meeting of July 12, 2018. Rec: Approve as presented. B. CLAIMS AND DEMANDS AGAINST THE CITY/HOUSING TREASURIES - Warrants Dated 6/29/2018 - 2, 7/6/2018, 7/13/2018, 7/20/2018, 7/27/2018, and 8/3/2018 (Joint Consideration with the Palm Desert City Council). Rec: Approve as presented. C. HOUSING COMMISSION MINUTES for the Meeting of June 13, 2018. Rec: Receive and file. Upon motion by Weber, second by Nestande, and 5-0 vote of the Authority Board (AYES: Harnik, Kelly, Nestande, Weber, and Jonathan; NOES: None), the Consent Calendar was approved as presented. VI. CONSENT ITEMS HELD OVER None VII. RESOLUTIONS None 2 MINUTES PALM DESERT HOUSING AUTHORITY MEETING AUGUST 23, 2018 VIII. NEW BUSINESS A. REQUEST FOR AWARD OF CONTRACT FOR THE 2018 CITYWIDE TREE PRUNING TO GEORGE SALINAS TREE PRESERVATION IN THE AMOUNT OF $362,100 (CONTRACT NO. C36980, PROJECT NO. 932-18) (JOINT CONSIDERATION WITH THE PALM DESERT CITY COUNCIL). Landscape Supervisor Randy Chavez stated this contract is for the yearly hardwood pruning of the trees for the Housing Authority properties and City parks and medians. Additionally, staff is including Desert Willow Golf Resort as part of this contract. Councilmember/Member Harnik moved to, by Minute Motion, award/authorize: 1) Subject contract in the amount of $362,100 (City-$257,900; Desert Willow Golf Resort- $60,000; Housing Authority-$44,200) to George Salinas Tree Preservation, Yorba Linda, California; 2) Director of Finance to set aside a 10% contingency in the amount of $30,210 (City-$25,790, Housing Authority-$4,420) and 20% contingency for Desert Willow Golf Resort ($12,000), for a total of $42,210; 3) Mayor/Chairman to execute the contract; 4) City Manager to execute change orders in an amount of to exceed contingency amounts — funds are available for portion of the contract relative to City and Assessment Districts in Parks and Recreation Account Nos. 1104610-4332001, 1104610-4337100; Repair/Maintenance Medians Account No. 1104614-4337001; Desert Willow Account No. 4414195-4332000; and Assessment District Fund 200 Accounts; Housing Authority funding for the contract services is identified in the 2017-2018 and 2018-2019 Housing Authority Operating Budgets. Motion was seconded by Nestande and carried by a 5-0 vote (AYES: Harnik, Kelly, Nestande, Weber, and Jonathan; NOES: None). B. CONSIDERATION OF A REQUEST BY ALLIED AFFORDABLE HOUSING, LLC, TO EXTEND CONTRACT AND ENTITLEMENTS FOR PROPOSED DEVELOPMENT OF ARC VILLAGE PROJECT AT THE HOUSING AUTHORITY VACANT PROPERTY KNOWN AS APN 622-020-096 (JOINT CONSIDERATION WITH THE PALM DESERT CITY COUNCIL). Principal Planner Eric Ceja pointed out this was a joint consideration item with the Housing Authority. Two years ago Allied Affordable Housing, LLC, received entitlement approvals to construct an affordable housing complex at Desert Arc on Country Club Drive. Project entitlements are valid for two years, and the Applicant may apply for an extension. Because this project also has a lease agreement with the Housing Authority, staff decided to move the project entitlements to the City Council for its consideration along with the request for the lease extension. This project was considered for an extension by the Planning Commission and recommended approval of extending the entitlements for another year to May 2019. One of the actions for the Housing Authority is to also extend the lease for this land. The lease will expire on January 2019, but the project entitlements are valid until May 3 MINUTES PALM DESERT HOUSING AUTHORITY MEETING AUGUST 23, 2018 2019. Therefore, staff is asking to extend and align both the lease and entitlements to expire at the same time in May 2019. He noted Management Analyst Jessica Gonzalez and the Applicant were available to answer questions. Councilmember/Member Harnik asked if this project went out for a Request for Proposal (RFP). Mr. Ceja indicated it did not. Councilmember/Member Harnik said it's an important project and its been stalled, which she found disappointing, but she wasn't going to stand in the way of an extension. Mayor Pro TemNice Chairman Weber pointed out that the City was not holding it up, but if the extension wasn't approved, it would end this project. She asked if it was ever resolved on how they were going to go in and out from Country Club back to the project. Mr. Ceja replied staff is in constant communication with the Board of Desert Arc in discussing various options for access, stating the other concern raised was security. Councilmember/Member Kelly recalled the real hold up was the attempt to qualify for State Tax Credit Allocations, which was kind of a long shot, but worth taking. At this point, they are moving on to other sources of funding. Mr. Ceja agreed, stating he may ask the Applicant to come up and explain the different sources of funding they have been pursuing. They did apply for the State Tax Credit, but they haven't been able to secure it. Instead of pursing that single source, they are now taking the approach of seeking multiple funding. Councilmember/Member Harnik asked that someone explain how this all came about if there was no RFP. Ms. Moore explained that back when this parcel was acquired by the Housing Authority, staff worked with Desert Arc in identifying things that would work with their community and clients they serve. Staff had local developers come in, and because of the strategic location of the property and the fact that it would only allow ingress and egress through the Desert Arc parking lot, two developers said it wouldn't work for them. The third developer, Allied Affordable Housing, LLC, approached staff about their option and talked to Desert Arc about the project they were proposing. At that time, Desert Arc representatives supported the project and brought that 4 MINUTES PALM DESERT HOUSING AUTHORITY MEETING AUGUST 23, 2018 forward. She reminded Council this was happening right around when Redevelopment was eliminated. Because of the uniqueness of the parcel and with no other developers interested, the parcel is landlocked. Staff looked at every option to access that property through another mechanism, but then ended up with drainage issues due to the location and how it's situated. From this perspective, the City secured a drainage easement to the homeowner to the south in anticipation of a project such as this, but Allied was the only one that came forward with a compatible project for the location. As stated previously, staff worked with a couple of developers and suggested they look to secure financing in other ways, and another developer wanted to actually expand the project. She said the City owns the property to the east, Las Serenas, so staff considered an expansion of Las Serenas, but because the wall would have to be opened up, it would have created a different problem. It didn't appear that without significant amounts of money, and having to cross properties that go all the way down to Villa Portofino, that an adjustment could be made. Given the land lock, and the fact that Allied's project would help support the clients that Desert Arc serves, at that time, staff felt it was probably the best suggestion to the City Council for approval. Councilmember/Member Harnik recalled that at one time Desert Arc was opposed to having anyone use their parking lot for ingress and egress, so she's glad they chose to look at it differently. Ms. Moore added she received communication from Richard Balocco that he was okay with the extension. However, she's had conversations with him in the past where he has indicated discussion will need to take place, whatever the project is, relating to the best solution for access, because it will be challenging. Councilmember/Member Harnik agreed, because at one time he was absolutely opposed, adding the City needs to make sure ingress and egress is acceptable to everyone. Mayor/Chairman Jonathan asked who owned the property. Ms. Moore said the Housing Authority owned the property. Further responding, she said originally the property was owned by Desert Arc and the Redevelopment Agency acquired/purchased the propertyforthe Housing Authority with the idea that it would create something similar, expand Las Serenas, or provide a housing option. Mayor/Chairman Jonathan asked if the property would be given to Allied if they can put this project together. 5 MINUTES PALM DESERT HOUSING AUTHORITY MEETING AUGUST 23, 2018 Ms. Moore explained that Allied will actually have a land lease, and they have asked that if certain conditions are met that it be extended as well. Therefore, the City does have a land lease with them and they do have control of the site. Mayor/Chairman Jonathan said he was hearing that if this particular operator is not able to make this happen, then the City needs to move to Plan B. He personally didn't have a problem with the extension, but it gets to a point where the City couldn't just have Allied keep on trying. He suspected this formula would work for others. Once Desert Arc gives access, then it becomes a very usable lot. Ms. Moore added that Mr. Balocco indicated to her months ago that his acceptance in a situation with this project designed the way it is and for the clients it's designed for, that access will be very limited. She said some of the clients do not drive, so they would not have access except pedestrian access. A lot of the access for ingress and egress would be for employees, and that would be at the community itself. Mayor/Chairman Jonathan replied he understood and recalled that conversation, but his point was that if this operator can't make it a reality, there are others who can. There has to be a point where there is a better alternative, and in his mind May 2019 would be that point. Councilmember/Member Kelly stated Council didn't want to prejudge, because it could be in a situation where there has been substantial progress. What seems meaningful to her is that an extension is being sought to afford an opportunity to build one thing without the tax credit, so that option needs to be exhausted. Councilmember/Member Kelly moved to, by Minute Motion: 1) consider a request by Allied Affordable Housing, LLC, Santa Monica, California, to extend Contract No. HA34970 and Case No. PP/CUP 16-102 entitlements through May 17, 2019, for the proposed development of the Arc Village Project at the Authority's vacant property known as APN 622-020-096; 2) authorize legal counsel to prepare and finalize an extension contract; 3) authorize the Chairman and/or Executive Director, or designee, to execute any necessary actions, including executing the negotiated extension contract and any and all documents necessary to facilitate the contract and the Arc Village Project. Motion was seconded by Harnik and carried by a 5-0 vote (AYES: Harnik, Kelly, Nestande, Weber, and Jonathan; NOES: None). IX. CONTINUED BUSINESS None 6 MINUTES PALM DESERT HOUSING AUTHORITY MEETING AUGUST 23, 2018 X. OLD BUSINESS None XI. PUBLIC HEARINGS None 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 MS. YVONNE DELGADILLO, Allied Affordable Housing,LLC, attempted to provide a statement on an item on the agenda, but because the item had already been heard and voted on (New Business - Item B), she was encouraged to send the City Council an email with her statement. XIV. ADJOURNMENT With Authority Board concurrence, Chairman Jonathan adjourned the meeting at 6:23 p.m. SABBY •NATHAN, CHAIRMAN ATTEST: RA ELLE D. KLASSEN, SEA PALM DESERT HOUSING AUTHORITY 7