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HomeMy WebLinkAboutHOUSG CMSN - 03/08/06PALM DESERT REDEVELOPMENT AGENCY INTEROFFICE MEMORANDUM TO: RACHELLE KLASSEN, CITY CLERK FROM: PATTY LEON, RECORDING SECRETAR DATE: APRIL 13, 2006 SUBJECT: HOUSING COMMISSION MINUTES Attached are the Housing Commission Meeting Minutes of March 8, 2006, approved at the Housing Commission Meeting held April 12, 2006. Please submit to the Housing Authority Board. Thank you. cc: Carlos L. Ortega, Executive Director CITY OF PALM DESERT HOUSING COMMISSION MINUTES MARCH 8, 2006 1. CALL TO ORDER Chairman Jane Turner convened the meeting at 3:30 p.m. II. ROLL CALL Present: Members Absent: Carrie McLeod Larry Saindon Leo Sullivan Jane Turner Linda Ward Also Present: Janet Moore, Housing Authority Administrator Dave Yrigoyen, Director for Redevelopment and Housing James Conway, Project Coordinator Jessica Gonzales, Management Analyst Patty Leon, Recording Secretary Guest(s): Teresa Vakili, RPM Company Verna Smith, Potential Housing Commissioner III. ORAL COMMUNICATIONS IV. CONSENT CALENDAR A. MINUTES of the Regular Housing Commission meeting of February 8, 2006 With a Motion made by Leo Sullivan and seconded by Linda Ward the minutes were unanimously approved. V. REPORTS AND REMARKS Housing Commission Minutes MARCH 8, 2006 A. COMMISSION REPORTS As requested at the last Commission meeting, a copy of Title 25 was provided to the Commission for review. It defines what is included in income and what affordable housing cost includes. Linda Ward reviewed the report and requested that a list of adjustments to income be provided with the recertification notices sent out to tenants. Teresa Vakili will address. B. SUMMARY OF CITY COUNCIL AND REDEVELOPMENT AGENCY AGENDA ITEMS RELATED TO HOUSING, AND SUMMARY OF CITY COUNCIL, HOUSING AUTHORITY, REDEVELOPMENT AGENCY ACTIONS An update was provided to the Housing Commission for review. Janet Moore reviewed the memo and stated that the City will hold a public hearing for the conveyance of a single-family located on Goleta Avenue to Habitat for Humanity. The home will be rehabilitated' and sold to a very low-income family. In consideration of the conveyance to Habitat, the Agency will be entitled to the 45-year covenant. C. RPM MONTHLY STATUS REPORTS The Monthly Status Report for February was reviewed by the Commission. Jane Turner asked about the number of manager apartments within our properties. Teresa Vakili stated that according to Law, complexes of 20 units or more require an RPM representative on site. All properties house a maintenance or manager on site with the exception of the smaller complex known as Pueblos. Leo Sullivan indicated his concern that we seemed to be going backwards at Laguna Palms in terms of downed units. He asked for an explanation. James Conway noted the impending schedule of work at Laguna Palms and indicated that there were residents in renovated units from before and as they left, those units were not pre -leased due to the extent of the exterior work. He also noted that the exterior renovations of the property are scheduled go out to bid in the next two months. G:\RDA\Patty Leon\Wpdocs\Housing Commission\Minutes\2006\3-8-06.doc Housing Commission Minutes MARCH 8, 2006 Mr. Sullivan questioned why we've had a plan for five months and have not put anything out to bid. Mrs. Moore stated that by undergrounding the project and installing new meters, the interior electrical plans had to be redrawn .as well. She noted that we are taking the opportunity to do those electrical changes prior to leasing any units. The two-story building will not be occupied until the staircases and landings are reinforced or replaced. Verna Smith asked how long the repairs would take, James Conway responded that the exterior renovations have been submitted to the Building Department with some minor changes to address, but anticipated going out to bid within the next two months. Mr. Sullivan asked whether RPM Company received a per door fee while these units are down. Mrs. Moore responded yes since the Authority determined that those units are in fact considered down. However, if the units were down due to something RPM Company did, then they do not receive a fee. Mr. Sullivan expressed concern that RPM had not made those units down but that the Authority had. He questioned the negative cash flow figures shown on the Monthly Status Report for Laguna Palms and asked if there was anything positive about this property. Dave Yrigoyen stated that those types of problems are expected when doing renovation work especially in the types of units we purchase which are those in desperate need of repair or in the worst possible condition. He noted that gas lines had to be replaced as well. Mr. Sullivan asked for confirmation that it couldn't be done building by building. Mrs. Moore responded that yes that was true since that the utility companies provided an overall inclusive plan . for the entire site. Mr. Conway noted this approach is standard which is to share the trenching in order to make sure all utilities use the same plan and to avoid continual impact to the property. Mr. Sullivan asked Teresa Vakili for the number of units currently occupied at Laguna Palms, stating that at the end of February's Monthly Status Report there were only eight. Ms. Vakili replied a total of seven units are currently occupied. G:\RDA\Patty Leon\Wpdocs\Housing Commission\Minutes\2006\3-8-06.doc Housing Commission Minutes MARCH 8, 2006 Linda Ward referenced Report #2 and questioned whether tenants at Country Village were all moderate income. Ms. Vakili responded that the recertification process is continuing and has approved, 6 to 7 tenants onto the affordable program; those numbers will reflect on next month's report. Mr. Sullivan reverted back to the discussion about Laguna Palms and asked if we could make guesses as to when this building will be useful, stating that Laguna Palms might run hand in hand with Santa Rosa. Mrs. Moore stated that's what redevelopment does, redevelop areas that are blighted. Often times it is difficult especially when we are dealing with old buildings like Laguna Palms. You don't know what types of issues you will run into until you open the walls with the electrical, conduit, and/or plumbing. Furthermore, once the scope expands to work that the Building Department has to review, more is required that was not anticipated. Mr. Conway reminded the Commission of staffs efforts to expeditiously renovate units at California Villas by going out to bid and how the price was remarkably high, ranging from $21,000 to $26,000 per unit. Currently the cost to renovate one unit is $9,000 to $10,000. The question was asked whether this approach would be wise to do at Laguna Palms. Mr. Sullivan recalled the tours at Laguna Palms and the remodeled units and stated that his impression was that the units would be renovated. He felt that we should have been way ahead and plan this much earlier than what we've done now. Further stating this was poor planning. Mrs. Moore stated that 24 units were in fact reconditioned. She also noted that another reason for the low occupancy was a result of recertifications not being done in quite some time. As leases come up for renewal, the new onsite manager has reviewed qualifying documents and found that they were inconsistent with the Program and in most cases leases were not renewed. Staff immediately took the opportunity to not re -lease the units in order to rewire them as part of the new electrical plan. She also mentioned that although some of the units in the two-story building were renovated, they will not be occupied until the structural condition of the staircases and landings are reinforced or replaced. Mr. Conway provided a brief explanation of how a construction project goes through its process which almost always includes "scope creep". He stated that the laws and regulations have changed which has created a larger scoped project than originally expected. G:\RDA\Patty Leon\Wpdocs\Housing Commission\Minutes\2006\3-8-06.doc Housing Commission Minutes MARCH 8, 2006 Mr. Sullivan stated that the Commission had experience with a building like that at Santa Rosa where it was gutted right down to the basic studs and rebuilt the whole thing. He expressed concern that staff was taking too long to get to that point today with Laguna Palms. He noted that it has taken at least 6 months or longer to get to this point. He questioned why staff had not made that determination earlier on, stating he understands that it is a bureaucratic process but this has taken far too Tong. Mrs. Moore responded that she understood Mr. Sullivan's frustration and stated it was frustrating to staff as well. She stated that it takes approximately 12 months to get construction documents from any architect right now since the demand is high. Furthermore, when construction documents are submitted to the Building Department, it is expected that they will be sent back with comments or corrections as part of the normal approval process. She also mentioned that there are a lot of projects going on in Palm Desert right now and the Authority and the Agency are treated the same as any developer when submitting construction documents for review. Mr. Sullivan stated that the Housing Commission's goal is to provide housing for low moderate -income . people and felt that we should get cooperation from the other departments. Mr. Yrigoyen confirmed that we do have cooperation and stated that the Public Works and Building Departments are in fact short staffed and explained how both City Departments and the private sector are not able to keep up with the demand. He noted that this is a different environment from when the Commission first reviewed Santa Rosa. He further noted that California Villas was a good example. No bids were received for the exterior renovation project, which caused staff to negotiate with qualified contractors resulting in a delay in the project. Mr. Conway explained the due diligence required after purchasing a property in terms of liability and health and safety issues, as well as the evaluations of qualifications of outside professional services such. as architects, and engineers, which can be time consuming. Other departments are not part of this process. Carrie McLeod stated that although she did not know what the deciding factor was, she questioned why we were not on the "fast track" with other departments and felt we should be put ahead of the private sector. G:\RDA\Patty Leon\Wpdocs\Housing Commission\Minutes\2006\3-8-06.doc Housing Commission Minutes MARCH 8, 2006 Mrs. Moore responded that depending on the situation most times it is feasible for us to stay on top of the project just due to proximity of the reviewing departments but we also have to consider that those departments have other developments to review that may take priority. Mr. Conway added that often times those departments will call us as soon as the documents are ready. In addition, staff is able to check on the status of a plan in comparison to the private sector, even considering a lot of the work is contracted to outside consultants. At this time, Mr. Sullivan addressed Chairman Jane Turner and suggested that the Commission should make the Council aware of these issues and the concerns over the fact that they are not providing housing in a timely basis as a result of a number of factors but that one of them being this situation between fast tracking per city issues. He made a motion to that affect. Mrs. McLeod concurred stating that our own housing projects should be a priority. Mrs. Moore stated that the concerns and comments discussed will reflect in the minutes and will be forwarded to the Council for their review, as well as the City Manager. Mr. Sullivan stated he felt that it was not enough to be mentioneJ only as comments in the minutes. He expressed concern with regard to providing housing on a timely basis and felt the Commission is here for that reason. Further stating that the Commission is not involved with the purchases of properties, as it has been clearly described, but felt that they are here to provide housing and they are not doing it. He added that if this were in the hands of the private sector everyone would have been fired a long time ago with what's been going on. But we are not in the private sector, we are in a bureaucratic process.. There has to be a way to smooth this through. He affirmed he would like that to be very clearly stated to the Council. Mrs. Ward questioned on whether Laguna Palms would have gone faster if it had been demolished. Mr. Sullivan reminded Ms. Ward of how long ago it was when they were working on the plans for Palm Village. G:1RDA\Patty Leon\Wpdocs\Housing Commission\Minutes1200613-8-06.doc Housing Commission Minutes MARCH 8, 2006 Mr. Conway explained staffs efforts to expedite this process and how in most cases we are paying high premiums for less work these days. Mr. Saindon questioned whether the Council was aware of the work associated with renovations when purchasing older properties. He stated that he did not know what the relationship of the City Council is to staff, and if they go through the City Manager to start putting pressure on certain departments but felt the Commission should vote on it. Chairman Jane Turner stated it was her understanding that it had to be on the Agenda in order to vote. Mr. Saindon stated that the occupancy report was on the Agenda as an informational item and that 40 units are not occupied at Laguna Palms. That by itself can make it an agenda item. Mr. Sullivan stated they needed to address the Commission's frustrations to the City Council. He felt that each month when this Commission meets they are told that they have to do this, the Building Department wants them to do that. Let's get together in one room and do it all at once, instead of having all these individual meetings that go on internally. Ms. McLeod offered her opinion that if it meant that another development had to wait in order to assist housing issues, then they can wait. She stated she was not frustrated with staff but felt that housing was not given priority. Mrs. Moore assured the Commission that their concerns and comments would be forwarded to the City Manager. Mr. Sullivan clarified that he was talking about the Council and not the City Manager. Ms.Moore explained that it's appropriate for staff to report it to Mr. Ortega, he should be made aware of the Commission's concerns. Mr. Sullivan replied he understood that, but would like it reflected in the minutes for the Council to review. Mrs. Moore reiterated that the overall process is not greatly impacted by city departments. She noted California Villas exterior renovation project and how it took seven months to award a contract. The delay was based on the fact that no bids were received which was no fault of the City's departments. 7 G:\RDA\Patty Leon\Wpdocs\Housing Commission\Minutes\200613-8-06.doc Housing Commission Minutes MARCH 8, 2006 Mr. Yrigoyen stated that the City as a whole is doing other important projects that are going through the same process. The current construction environment is difficult to deal with from the construction perspective. These Public Works projects are just as important to the Council as they are going to accomplish regional improvements. There are other projects that are equally as important out there, that, are lagging. Mr. Sullivan stated that it was not from. this Commission to which Mr. Yrigoyen confirmed stating it was the City as a whole and we're a part of the City. Mr. Sullivan stated that the Commission members are here as volunteers to give their input. Noting, that it is a concern to a number of the Commissioners and it has nothing to do with staff, it has to do with external influences and possibly internal influences the Commission wants the Council to understand that. He felt that the Commission needed to make that abundantly clear so that everybody is aware that they are concerned over the lack of progress with these things. Again, he reiterated this has nothing to do with staff. He further stated he was frustrated by sitting here month after month and seeing little or no progress. He expressed concerns with the time frame of Palm Village Apartments, but felt that Laguna Palms is really going to top it off. He also felt that we should have made that determination of gutting Laguna Palms and starting from scratch. He felt we took a different approach and that it wasn't the right approach in fact it was just poor planning. He concluded that since we know now what has to be done, let's get it done as expeditiously as possible. A MOTION WAS MADE BY MEMBER LEO SULLIVAN AND SECONDED BY LARRY SAINDON TO FORWARD THE COMMISSION'S CONCERN TO THE COUNCIL WITH RESPECT TO PROVIDING HOUSING IN A TIMELY MANNER AS A RESULT OF A NUMBER OF FACTORS BUT ONE BEING THE SITUATION BETWEEN FAST TRACKING PER CITY ISSUES. Mr. Saindon questioned whether the City Councildiscusses in their meetings the probability or the possibilities or what may have to happen to a property in order to bring it to city standards for low income housing when deciding to purchase it. He wanted to know who goes out and looks at a piece of property and says okay this would be good for low income housing, prior to the Council entering into negotiations and purchasing it, does anyone question the conditions such as electrical issues? He asked if our building inspectors go out and inspect first. G:\RDA\Patty Leon\Wpdocs\Housing Commission\Minutes\2006\3-8-06.doc Housing Commission Minutes MARCH 8, 2006 Mrs. Moore stated that the Council briefly discusses those issues in their meetings with regard to acquiring older properties. The Council is provided with the particulars of the property from the perspective of surveys and visual exterior building conditions. But our building inspectors generally do not go out and inspect them until we own them. We contract for certain types of reviews during acquisition. Mr. Saindon clarified that he was referring to the property before the fact. He questioned whether the Council needs to be involved in that, should be involved in that or is involved in that and if the Council even considers this or it's not their duty. Mr. Conway stated that staff does its due diligence with qualified consultants in terms of environmental concerns during the acquisition process. It is the Council's decision on whether they wish to buy that property based on those conditions. Mr. Saindon agreed it was the Council's decision but questioned if the Council knew California Villas was going to take to 2 to 3 years to get up to running where we could have 100% lease stating it was frustrating on their part. He was concerned that if we keep doing renovations like this that Palm Desert might not always be financially solvent. Mrs. Moore stated that the worse condition a property is in the more the Council wants to purchase it, and they take into consideration the time frame to rehabilitate. The Redevelopment Agency is tasked with renovating old dilapidated buildings and eliminating blighted areas in the City that most companies are not interested in renovating to the extent that we do. In some cases, they would rather put something else there other than housing, which is why the Agency is so committed to do this. In addition, the Council is aware of the time factors and frustrations that everyone is in right now. They know there is a great deal involved with respect the construction plan documents to ensure the best renovation. Ms. Ward was not clear on the answer and asked if and when the City Council decides to purchase a property and they give it to us, do we have to take it as it is or can the Commission make a decision to demolish it and start all over? Ms. Moore responded that the Council would require an extensive study to justify demolishing a building and that could take up to 12 to 18 months at which time the Commission may be asked to review a recommendation to demolish it. G:\RDA\Patty Leon\Wpdocs\Housing Commission\Minutes\2006\3-8-06.doc Housing Commission Minutes MARCH 8, 2006 Mr. Sullivan reiterated that these concerns are being made now so the Council is aware. D. REPORT #1 - MONTHLY OCCUPANCY AND AVERAGE RENT STATEMENT Report # 1 for January was reviewed by the Commission. E. REPORT #2 - MONTHLY NET OPERATING INCOME STATEMENT Report #2 for January was reviewed by the Commission. F. HOUSING AUTHORITY PROPERTIES UPDATE (JAMES) An update on the Housing Authority properties was provided to the Commission. James Conway summarized the update. He clarified that the clubhouse furniture for Las Serenas has not been delivered; the date on the report is incorrect. Linda Ward inquired if the maintenance shop at Las Serenas would be expanded. James Conway stated that the idea is to expand the maintenance shop directly behind the kitchen, but a final decision has not been determined. Upon question of Country Village's assessment status, Janet Moore stated that an ALTA survey of the entire site including the restaurant is in process. An Architect is scheduled to begin a structural integrity study of the property sometime in April. G. PALM DESERT HOUSING AUTHORITY RESIDENT SURVEY RESULTS The Commission was provided with the results of the survey mailed to all Housing Authority tenants with the exception of Country Village. Janet Moore stated that the survey was modified to consider some of the situations that occur on the properties for various reasons. Additionally, the report was modified to show the comparison of percentages for the total number of survey's received versus the total number of units for that particular complex. Commission agreed the results overall were good. 10 G:1RDA\Patty Leon\Wpdocs\Housing Commission\Minutes1200613-8-06.doc Housing Commission Minutes MARCH 8, 2006 VI. NEW BUSINESS A. Award of Contract to Portrait Homes (California Villas) Action: Motion was made by Leo Sullivan and seconded by Carrie McLeod to approve and forward a recommendation to the Palm Desert Housing Authority to award contract to Portrait Homes in an amount not to exceed $4,948,249 for Phase "A" exterior renovations at California Villas. James Conway reviewed the staff report and asked for the Commission's approval. B. Supplemental Resolutions of the Housing Authority properties Action: Motion was made by Larry Saindon and seconded by Linda Ward to approve and forward a recommendation to the Palm Desert Housing Authority for consideration of supplemental resolutions designating the Palm Desert Housing Authority as the operator of Agency owned Housing projects. Given that the Authority will be the recipients of Palm Village Apartments and La Rocca Villas, Janet Moore stated that staff was directed by our legal counsel to adopt a supplemental resolution to allow the Authority to operate, maintain and renovate the listed properties as well as any newly acquired. VII. CONTINUED BUSINESS A. Rental Rate Increase Action: Motion was made by Carrie McLeod and seconded by Larry Saindon to approve and forward the recommendation to the Palm Desert Housing Authority to authorize the rental rate increase and establishing a procedure for setting rental rates, annually. VIII. INFORMATIONAL ITEMS A. HOUSING AUTHORITY NEWSLETTER (MARCH) Newsletters were reviewed by the Commission. G:\RDA\Patty Leon\Wpdocs\Housing Commission\Minutes\2006\3-8-06.doc Housing Commission Minutes MARCH 8, 2006 At this time, members Leo Sullivan and Carrie McLeod mentioned that they will not attend the Housing Tour scheduled March 17, 2006. B. AGENCY HOME IMPROVEMENT PROGRAM UPDATE An update on the Home Improvement Program was provided to the Commission for review. James Conway stated no significant changes to report. C. PALM VILLAGE APARTMENTS Dave Yrigoyen provided an update stating construction is progressing. D. CATALINA GARDENS COMMUNITY ROOM Dave reported that the interior of the community room is ready to be painted. Janet Moore stated that depending on the construction schedule, the community room is scheduled on the Housing tour. E. Phase II 20 Acre Site Update: 1) Falcon Crest 2) La Rocca Villas An update of the 20 Acre Site projects was provided in a memo by Cathy Walker to which Dave Yrigoyen reviewed. Carrie McLeod stated that she had taken a drive to the 20-acre site and it appears that tenants at Hovley Gardens are not using their garages; cars are parked on both sides of the street creating a parking issue. Staff is discussing this matter with the developer and the Public Works Department. With regard to Falcon Crest's qualifying criteria, Janet Moore reported that a criteria has been reviewed and established by the sub -committee, as well as Leo Sullivan. It has been forwarded to the developer who will be establishing a wait list. Ms. Moore thanked Mr. Sullivan for his assistance. F. Estonia Protocol No report was provided. 12 G:\RDA\Patty Leon\Wpdocs\Housing Commission\Minutes\200613-8-06.doc Housing Commission Minutes IX. ADJOURNMENT MARCH 8, 2006 Janet Moore announced that she was advised by the City Clerk's office that there is a potential study session for the Council scheduled the same day as the Housing tour. Three possibilities discussed were: 1) The tour would be postponed entirely; 2) The Councilmembers in attendance would conclude their tour at 10:30; or 3) The Council may request to go at a different time. Staff will notify the Commission of any changes to the schedule date. With members of the Housing Commission concurrence, Chairman Jane Turner urned the meet' g at 5:00 p.m. The next meeting will be held on April 12, 2006. PATTY LEON, RECORDING SECRETARY 13 G:\RDA\Patty Leon\Wpdocs\Housing Commission\Minutes1200613-8-06.doc