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HomeMy WebLinkAboutHOUSG CMSN - 6/14/06PALM DESERT REDEVELOPMENT AGENCY INTEROFFICE MEMORANDUM TO: RACHELLE KLASSEN, CITY CLERK FROM: PATTY LEON, RECORDING SECRETARY DATE: JULY 13, 2006 SUBJECT: HOUSING COMMISSION MINUTES Attached are the Housing Commission Meeting Minutes of June 14, 2006, approved at the Housing Commission Meeting held July 12, 2006. Please submit to the Housing Authority Board. Thank you. cc: Carlos L. Ortega, Executive Director kee6-1111.644666Y HOUSG AUTH ON g-dq' C1(4° VERIFIED BY: 49-`4X(iiir Original on file with City erk's Office CITY OF PALM DESERT HOUSING COMMISSION MINUTES JUNE 14, 2006 I. CALL TO ORDER Vice- Chairman Carrie McLeod convened the meeting at 3:30 p.m. II. ROLL CALL Present: Members Absent: Carrie McLeod Larry Saindon Leo Sullivan Linda Ward Also Present: Jane Turner Carlos Ortega, Executive Director Justin McCarthy, ACM for Redevelopment Dave Yrigoyen, Director of Redevelopment and Housing Janet Moore, Housing Authority Administrator James Conway, Project Coordinator Jessica Gonzales, Management Analyst Bryce White, Senior Construction Contract Administrator Patty Leon, Recording Secretary Guest(s): Jim Ferguson, Mayor Laurie Aylaian, Redevelopment Manager Missy Wightman, Project Coordinator Teresa Vakili, RPM Company Verna Smith, Potential Housing Commissioner Reuel Young, Interactive Design III. ORAL COMMUNICATIONS Carrie McLeod reported on the Housing Sub -Committee meeting that met earlier that day at 2:00 p.m. to discuss the photovoltaic panels for Palm Village Apartments and One Quail Place signage. A request was made to add both Housing Commission Minutes JUNE 14, 2006 items under New Business to accommodate actions required by the Commission. The following motion was made: Motion was made by Larry Saindon and seconded by Linda Ward to add the Palm Village Apartments carport photovoltaic panels and the One Quail Place signage under New Business. IV. CONSENT CALENDAR A. MINUTES of the Regular Housing Commission meeting of May 10, 2006 With a Motion made by Larry Saindon and seconded by Leo Sullivan the minutes were unanimously approved. Leo Sullivan referenced the minutes on page 2 and asked as to the status of the Commission's concerns in terms of the Council's response. Justin McCarthy stated that he had forwarded the concerns to the City Manager who indicated they were indeed forwarded to the City Council; however, he had not received a response yet. V. REPORTS AND REMARKS A. COMMISSION REPORTS B. RPM MONTHLY STATUS REPORTS The Monthly Status Report for May was reviewed by the Commission. Janet Moore asked the Commission if the Monthly Occupancy Status Report that shows the total number of units either vacant, occupied, down and/or pending, was useful. All commissioners agreed it is very helpful. Linda Ward referenced California Villas' Total Traffic and asked on the status of the seven inquiries. Teresa Vakili responded that the applications received from those interested applicants were considered incomplete. It was noted that due to the renovation project, units are not being leased at this time, but are accepting applications to be placed on the wait list. G:\RDA\Patty Leon\Wpdocs\Housing Commission\Minutes\2006\7-14-06.doe Housing Commission Minutes JUNE 14, 2006 C. REPORT #1 - MONTHLY OCCUPANCY AND AVERAGE RENT STATEMENT Report # 1 for April was reviewed by the Commission. Janet Moore stated that the report will eventually reflect the increase in rents based on the rent policy effective July 1, 2006. D. REPORT #2 - MONTHLY NET OPERATING INCOME STATEMENT Report #2 for March was reviewed by the Commission. Larry Saindon asked about the percentages of income levels not shown on the report. Janet Moore stated that those income levels, if exceeded, are considered on the next category listed on the report. She explained that current policy states that if a family is at the 26% income level, it is automatically moved up to the next category. However, as part of the new rent policy, it will establish a more even spread of 5% categories; 20 to 25%, 26 to 30%, etc. Upon question of Country Village's occupancy, Janet Moore stated that the property is currently not leasing unoccupied units and existing leases are recertified as month to month. She also stated that Mr. Reuel Young with Interactive Design was present to provide information with regard to the evaluations done on the site. E. HOUSING AUTHORITY PROPERTIES UPDATE (JAMES) An update on the Housing Authority properties was provided to the Commission. James Conway summarized the update, clarifying that the grinding of sidewalks at Las Serenas were at the expansion joints. A memo was provided by Missy Wightman regarding One Quail Place signage. Carrie McLeod stated that the sub -committee reviewed five different portfolios from five different companies and it was determined that Calendar Girls was the best qualified based on presentations and portfolios. G:\RDA\Patty Leon\Wpdocs\Housing Commission\Minutes12006\7-14-06.doc Housing Commission Minutes JUNE 14, 2006 Larry Saindon also commented that in attendance was Ryan Stendell, Assistant Planner with the Planning Department, who explained what the Planning Department would approve and not approve. He further noted that they had discussed the logistics of using a local company. Of the two local companies, Calendar Girls gave the best presentation. Janet Moore stated that under New Business a request will be made to authorize to negotiate with Calendar Girls and forward the recommendation to the Housing Authority Board. Subsequent to approval, the sub -committee will meet again and review the solicited designs and costs. Discussion ensued on whether the City of Palm Desert had established a standard signage design made out of stone material, as seen throughout Palm Desert. It was explained that although the stone design is very common it has not been established as a standard signage for Palm Desert. F Country Village Apartments Presentation by Interactive Design Corporation Mr. Reuel Young provided a detailed description of the overall site and conditions of Country Village Apartments. He displayed a rendering of the existing layout as well as a yield study layout. He described the property to be a desirable location with quick access to nearby shopping centers and transitional transportation. The site and building characteristics were described to be in poor condition. Having described the conditions in great detail, Mr. Young discussed briefly the cost of rehab versus rebuilding. The yield study was illustrated using the entire site to accommodate approximately 100 units consisting of studios and one -bedroom units. A two-story building was depicted along the walkway of a tree street pattern with a three-story building in the middle section of the property. Parking was described as being a low ratio of one and a half to a unit vs. the standard two and a half. Mr. Young stated that the parking demand in affordable housing of any kind is substantially less than standard. It was explained by staff that a parking survey was conducted at the Housing Authority properties and determined that in some cases the ratio is less than one. Bryce White also mentioned that the Palm Village Apartments received approval of a parking yield of one and a half. It was noted that Casey's Restaurant has a long-term lease. G:\RDA\Patty Leon\Wpdocs\Housing Commission\Minutes12006\7-14-06.doc Housing Commission Minutes JUNE 14, 2006 Discussion followed regarding the construction of Country Village as a multi -family or senior complex, which will be determined once the property is being designed. It was reiterated that this review was to identify the condition of the property and to determine the parcel's yield. VI. NEW BUSINESS A. Palm Desert Housing Authority Vendor List Action: Motion was made by Larry Saindon and seconded by Linda Ward to approve and forward a recommendation to the Palm Desert Housing Authority to authorize the use of vendors on the attached Palm Desert Housing Authority Vendor List for the purposes of providing recurring, routine services, supplies, and maintenance to the Housing Authority properties pursuant to Section 3.32.110 of the Palm Desert Municipal Code. A revised vendor list was distributed to the Commission. Janet Moore stated that subsequent to mailing the Agenda, staff included additional vendors to include environmental services that will be coordinated through the City's Risk Manager. Upon question of the number of properties patrolled by the courtesy security patrol, the response was four. Janet Moore explained that currently there is one security company on contract but have experienced situations where there are immediate needs; Country Village was used as an example. RPM Company was asked to survey several companies and include on the vendor list. At this time, Vice -Chair Carrie McLeod introduced Mayor Jim Ferguson who was present to address the Commission of their concerns. Mayor Ferguson stated that the Council received a copy of the memo provided from Justin McCarthy to Carlos Ortega containing the minutes of the March 8th Housing Commission meeting, with a caveat that the Commission felt the Councilmembers were not monitoring the minutes nor what they were doing. He stated that the Council asked him to meet with the Commission today to advise that they do appreciate the Commission's input tremendously as well as read the minutes and comments even if they're referred by staff. He mentioned that in light of the recent resignation of Roger Dash and then receiving this memo, he wanted to 5 G:\RDA\Patty Leon\Wpdocs\Housing Commission\Minutes12006\7-14-06.doc Housing Commission Minutes JUNE 14, 2006 come personally and thank the Commission for all they do. Secondly, he explained that the Council does take a vital interest in housing for several reasons but more importantly legal and moral reasons. He explained how the Council is responsible for the production of affordable housing based on a stipulation, and has to ensure that Housing's 20% money is spent in a timely manner or it's lost. The Council also has to act in response to different Laws and requirements in order to move forward with our Housing. He mentioned that some of the comments from the Housing Commission indicate or imply that the Council is not moving fast enough. He asked to hear directly from the members of the Housing Commission on what their concerns were so that he can relay them back to the Council. He felt it was important to dialogue not just monologue, stating he was present to listen to the Commission, as the Council is concerned with this matter. Leo Sullivan stated that he was the first one to bring this matter to staff. He mentioned that he has been a member of this Commission for more than 7 years and felt that in the last several years he has seen a slow down in the approval process, primarily Palm Village Apartments. He indicated that the project has been here for four years, which is far too long to get through the approval process. He stated that Palm Village has come to the Commission on several occasions with the explanation that it had to go through the Planning Department or Building Department in order to move forward. He felt that those departments are putting up stumbling blocks in front of them and commented that we are a community within City Hall and would like to see that we are working together. He noted he was speaking on his behalf and not on behalf of the Commission. He also stated that he did not know why Housing is being treated differently and that the Commission had discussed doing a fast track basis in order to expedite the process of approving projects. He questioned what the solutions might be and how we can get them done. He further mentioned that the Commissioners are merely volunteers to help the City establish these units for low and moderate housing and felt that they are not moving very quickly. He indicated that properties are being purchased but again felt that they not moving very quickly. He emphasized to Mayor Ferguson, under the direction of the Council, to stress to the balance of the departments that we should fast track these items, but not necessarily make exceptions. Mayor Ferguson informed the Commission that he will meet with Carlos Ortega and review the Commission's comments more carefully and thoughtfully and provide some meaningful thoughts back to the Commission at the next meeting. He informed the Commission on some of the frustrations the Council is having with regard to their own City projects. He stated that he is aware that staff has a lot of work and how the Council 6 G:\RDA\Patty Leon\Wpdocs\Housing Commission\Minutes\200617-14-06.doc Housing Commission Minutes JUNE 14, 2006 has routinely turned down new position requests, which creates more work for our existing staff. He expressed that he understood that staff is the buffer between what the Council wants in terms of policy and what can actually be done, and often times staff gets compressed in the middle. He provided an explanation that the Council may decide and has, to acquire dilapidated properties, but it does not mean the Council is in any position to rehabilitate them at that point, for reasons of budget. Once a property is evaluated often times there are hazard conditions that need immediate attention, which creates hiring another contractor to fix them. He noted that those unexpected situations will happen, and while he could elaborate on the inefficiencies of government the Council tries their best to minimize them. Mr. Sullivan stated the reason why the Commission asked that their concerns be submitted to the Council as an agenda item. He noted how we all have a committee and commission that we volunteer outside of this scenario that do not necessarily work under the bureaucratic process and will often times thumb through the minutes and will not see something of importance. He noted that there are concerns that we are not moving forward. He indicated that staff was not brought to task for this, and that they are not attacking staff at all, but that the Commissioners are really concerned with regard to the approval process within city hall. Mayor Ferguson replied that he was not sure he viewed this as an attack on anybody other than to say the Council could do a better job, stating that if they can they will. He stated he was not trying to take staff out of this because they truly are in the middle. It's the Council that dictates the pace and the policy of what they do. He expressed that housing is a very big priority for the Council, its one that they take a lot of pride in. He further noted that it took the Council a little bit back that the Commission thought they weren't doing it fast enough. He further noted that the Council will take a hard look at this and get back to the Commission. Mr. Sullivan stated that there are two members from this Commission that work in housing in one way or another and, as stated in the minutes of March 8th, this whole group would be fired if they moved at this pace outside in the real world. Carrie McLeod stated that the comment she made at that particular meeting was to place or prioritize city projects over the public sector, giving an example such as the Wal-Mart project before housing business. Mayor Ferguson stated that the City does not have the staff to divert to a project of that scale such as Wal-Mart. A project of that size usually 7 G:1RDA\Patty Leon\Wpdocs\Housing Commission\Minutes1200617-14-06.doc Housing Commission Minutes JUNE 14, 2006 creates a need to contract with private contractors that will do nothing but their project. He added that when you see projects that seem to fast track its way through, it's because the developers actually paid for those resources in getting them done. He stated that this was the short answer and that the long answer would have to wait for the next meeting. He further noted he wanted to meet with Janet Moore, Carlos Ortega and the Mayor Pro -Temp to get better information for the Commission to understand where we are in all our housing projects, what is anticipated, and a completion schedule. Mayor Ferguson clarified acquisition that the Council does after authorizing the acquisition of dilapidated properties that are indeed unoccupied. He provided an example of a great opportunity right next to the Josyln Senior Center of a parcel of land that was purchased at the right time of the market for future construction. Being that they budget out five to ten years out on capital improvement projects, that project was not programmed in the next five years. He stated that although it might seem like they acquire properties and sit on them, it's because they are working on other things that are in front of them. Larry Saindon reverted back to the discussion of public sector projects versus Housing/City projects that are going through the Planning Commission for approval, and questioned if there was some housing regulation involved that stipulates that housing and/or city projects can be moved up. Maybe not first but to the second or third instead of saying this project came in last and we'll work on it after all these other projects have been worked on. Mayor Ferguson replied he did not know that it's that lineal and stated they do work on multiple projects at one time. He stated that whether it's a Redevelopment, City, Housing or private residential development they try to afford them all in the same sense of priority. He further stated that everybody gets treated equally, and he understands why they may be frustrated at the length of the process. He noted that while he may have expected a faster pace, he has been involved in a project for ten years and it is just now coming to fruition. Mayor Ferguson apologized for interrupting the meeting and stated he wanted to get the chance to talk to the Commission. He advised that he will get back to them at the next meeting, after they have had a chance to review their concerns. He thanked the Commission and expressed that there are a lot of committees and commissions and it's always refreshing to see one, and not that they don't take their job seriously, but seriously enough to say there's a problem and you Council need to take a look at it. G:1RDA\Patty LeonAWpdocs\Housing Commission\Minutes1200617-14-06.doc Housing Commission Minutes JUNE 14, 2006 B. RPM Company Contract Action: Motion was made by Leo Sullivan and seconded by Larry Saindon to approve and forward a recommendation to the Palm Desert Housing Authority to ratify the City Manager's approval of contract for property management services by and between Ray, Douglas, Ann, and Patrick Inc. a.k.a. RPM Company for Country Village Apartments Pursuant to the previous motion made to add two items under New Business, the following items were added: C. One Quail Place Signage Action: Motion was made by Larry Saindon and seconded by Linda Ward to approve and forward a recommendation to the Palm Desert Housing Authority to negotiate with Calendar Girls on the signage for One Quail Place Apartments. D. Palm Village Apartments Photovoltaic Panels Action: Motion was made by Leo Sullivan and seconded by Larry Saindon to approve and forward a recommendation to the Palm Desert Housing Authority to negotiate with SunWise Technology and GenSelf Corporation for the design and construction of a solar photovoltaic carport system at the Palm Desert Village Apartments. Missy Wightman stated that the project received authorization to go out to bid in April. Seven bid packets were distributed of which no bids were received on the day of bid opening of May 24, 2006. Staff contacted several of the companies that picked up bid packets and found that most of these companies were either too busy and/or had insufficient time to prepare a bid proposal. Staff asked the seven contractors to submit designs with evaluations for consideration of which two packets were received. Of both proposals, one provided a detail proposal as well as met the criteria in terms of the layout of the site and cost. Carrie McLeod also noted that the project will receive a rebate from the State of California. Janet Moore reported that the property has 36 units of which 9 units will have solar power to them. Those nine units will pay what rent calculates to without the utility allowance. The City will pay the cost for utilities. G:\RDA\Patty Leon\Wpdocs\Housing Commission\Minutes\2006\7-14-06.doc Housing Commission Minutes JUNE 14, 2006 Upon question of the length of time to repay itself, Bryce White stated that based on market conditions approximately 17 years with the rebates. The over all reduction in energy use is said to be 30%. Janet Moore stated that this project is in conjunction with the Estonia Protocol to take power off the grid and not so much the cost of how we do it. All properties are being assessed to incorporate energy efficiencies. With regard to the benefit for incorporating solar panels, Bryce White stated that as part of the new energy program, negotiations are in place with the Public Utilities Commission (PUC) and other various utility companies to provide funding. The primary impact will be through rebates, but also the fact that the City is doing something positive for California in terms of reducing energy as required by Title 24. Justin McCarthy stated that one thing to consider is Palm Desert is playing a pathfinder role. The Department of Energy Conservation is working with the PUC and major utilities to help evolve a program that can be applicable statewide. He noted that although we may not have good answers in terms of a return on investment, but the fact is the City is playing a major role in reducing energy. Carlos Ortega stated that if this particular project were in the private sector, where the landlord is making this decision, the pay -back would not be there. The City has goals that they want to reach in terms of a matter of policy. VII. CONTINUED BUSINESS VIII. INFORMATIONAL ITEMS A. HOUSING AUTHORITY NEWSLETTER (June) Newsletters were reviewed by the Commission. At this time, Leo Sullivan addressed Carlos Ortega and asked if the City Council can fast track the appointment of Verna Smith as a member of the Housing Commission. Before Jane Turner was appointed she attended the Housing Commission meetings for approximately nine months, as part of the application process. Mr. Ortega responded that the Council directly controls the appointments of Committee and Commission members, but will convey the Commission's request to the Council. 10 G:\RDA\Patty Leon\Wpdocs\Housing Commission\Minutes\2006\7-14-06.doc Housing Commission Minutes JUNE 14, 2006 B. AGENCY HOME IMPROVEMENT PROGRAM UPDATE An update on the Home Improvement Program was provided to the Commission for review. C. PALM VILLAGE APARTMENTS An update on Palm Village Apartments was provided to the Commission for review as well as pictures. Linda Ward commended Bryce White for his hard work in the project. D. CATALINA GARDENS COMMUNITY ROOM An update and pictures of the Community Room were provided to the Commission for review. 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. Dave Yrigoyen reported both projects are moving forward. Janet Moore stated that the developer for Falcon Crest had three informational meetings; a combined total of approximately 600 people attended. Open registration period commenced Saturday morning at 10:00 a.m. with approximately 50 people in line. The applicants were not allowed to assemble on the property for any more than an hour ahead of time or their application would be denied. They took in approximately 98 applications on Saturday and started again on Tuesday, which showed there is an interest in the project. There were 1000 packets that were distributed and so far 98 have been received. Discussion followed with a concern regarding the sales price of the homes at Falcon Crest and how it can effect nearby residents. It was explained that Desert Rose has had minimal effect as far as evaluations, but when there is a concern, appraisers are informed of the restrictions of the properties to omit those prices from their portfolios when doing analysis of comparables. Janet Moore also reported that Desert Rose paint project has been completed 11 G:\RDA\Patty Leon\Wpdocs\Housing Commission\Minutes1200617-14-06.doc Housing Commission Minutes JUNE 14, 2006 and encouraged Commissioners to drive -by to see the difference in appearance. F. Estonia Protocol G. 2006 Summer Schedule for City Council Meetings As informational, the City Council meetings schedule was provided to the Housing Commission. Discussion ensued on whether to cancel the August meeting due to Zack of Agenda items of which the Commission agreed to discuss it at the next meeting in July. IX. ADJOURNMENT With members of the Housing Commission concurrence, Vice- Chairman Carrie McLeod adjourned the meeting at 5:12 p.m. The next meeting will be held on my 12, 2006. PATTY LEON, F1ECORDING SECRETARY 12 G:\RDA\Patty Leon\Wpdocs\Housing Commission\Minutes12006\7-14-06.doc