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Home My WebLink AboutPRELIM - HA - 03/09/06PRELIMINARY MINUTES PALM DESERT HOUSING AUTHORITY MEETING THURSDAY, MARCH 9, 2006 CIVIC CENTER COUNCIL CHAMBER I. CALL TO ORDER Chairman Ferguson convened the meeting at 3:00 p.m. II. ROLL CALL Present: Member Jean M. Benson Member Buford A. Crites Vice Chairman Richard S. Kelly Member Robert A. Spiegel Chairman Jim Ferguson Also Present: Carlos L. Ortega, City Manager/RDA Executive Director David J. Erwin, City Attorney Sheila R. Gilligan, ACM for Community Services Homer Croy, ACM for Development Services Stephen Y. Aryan, Assistant to the City Manager Rachelle D. Klassen, City Clerk Amir Hamidzadeh, Director of Building & Safety Phil Drell, Director of Community Development Paul S. Gibson, Director of Finance/City Treasurer Doug Van Gelder, Director of Information Systems Mark D. Greenwood, Director of Public Works David Yrigoyen, Director of Redevelopment & Housing Steve Thetford, Asst. Chief, Palm Desert Police/Riverside Co. Sheriff's Dept. Grace L. Mendoza, Deputy City Clerk Upon a motion by Crites, second by Spiegel, and 5-0 vote of the Authority Board, Chairman Ferguson adjourned the meeting to Closed Session of the City Council at 3:01 p.m. He reconvened the meeting at 4:01 p.m. PRELIMINARY MINUTES PALM DESERT HOUSING AUTHORITY MEETING MARCH 9, 2006 111. CONSENT CALENDAR A. MINUTES of the Housing Authority Meeting of February 23, 2006. Rec: Approve as presented. On a motion by Benson, second by Spiegel, and 5-0 vote of the Authority Board, the Consent Calendar was approved as presented. IV. CONSENT ITEMS HELD OVER None V. RESOLUTIONS None VI. NEW BUSINESS A. CONSIDERATION OF SUPPLEMENTAL RESOLUTIONS DESIGNATING THE PALM DESERT HOUSING AUTHORITY AS THE OPERATOR OF AGENCY-OWNED HOUSING PROJECTS (JOINT CONSIDERATION WITH THE PALM DESERT REDEVELOPMENT AGENCI�. . Housing Authority Administrator Janet Moore explained that the resolutions clarified a couple of issues that were left unaddressed as to how shortfalls would be covered; they would be covered strictly from the low-mod income housing fund (the 20%). Further, she said they also designated any future acquisitions by the Agency as being operated by the Authority. Responding to question, she confirmed the Agency currently owned approximately 1,000 apartments. Member Spiegel moved to waive further reading and adopt Redevelopment Agency Resolution No. 517, supplementing its resolutions designating the Palm Desert Housing Authority as the operator of certain Agency-owned Rental Housing Projects in the City of Palm Desert. Motion was seconded by Benson and carried by 5-0 vote. Member Spiegel moved to waive further reading and adopt Housing Authority Resolution No. HA-29. acknowledging and accepting its designation by the Palm Desert Redevelopment Agency as the operator of certain Agency-owned Rental Housing Projects in the City of Palm Desert. Motion was seconded by Benson and carried by 5-0 vote. 2 PRELIMINARY MINUTES PALM DESERT HOUSING AUTHORITY MEETING MARCH 9, 2006 B. REQUEST FOR APPROVAL OF ACTIONS AUTHORIZING A RENTAL RATE INCREASE AND ESTABLISHING A PROCEDURE FOR SETTING RENTAL RATES ANNUALLY. Mr. Ortega commented that the subject request included a recommendation that the Authority increase rents on its projects across the board, with the understanding that there may be additional subsidies when that happens. He said the report included the justification of the rent increase to be in line with the market, and he offered that staff was available to answer any questions. In response to question, Housing Authority Administrator Janet Moore said that there wasn't a set maximum increase; staff tried to come up with a reasonable implementation. The rates were fairly sizable to only those who were over 65% of the County Median Income. She said they looked back at a previous action by the City Council in 1998, and the subject request was similar. Further responding, she said that on the apartments that were not designated moderate income, the Authority was not currently competitive and was far below market rate. � Vice Chairman Kelly moved to: 1) Waive further reading and adopt Resolution No. HA-30, establishing a procedure for setting rental rates for Palm Desert Redevelopment Agency-owned rental units; 2) by Minute Motion, authorize the Chief Administrative Officer to execute all documents that may be necessary to facilitate the application of annual rent increases. Motion was seconded by Spiegel and carried by 5-0 vote. VII. CONTINUED BUSINESS None VIII. OLD BUSINESS A. REQUEST FOR AWARD OF CONTRACT FOR PHASE A EXTERIOR RENOVATIONS AT THE HOUSING AUTHORITY PROPERTY KNOWN AS CALIFORNIA VILLAS (C�NTRACT NO. HA23650}. Upon inquiry, Project CoordinatorJames Conway said the subject apartment complex was located at the intersection of California Drive and Elkhorn Trail, the southeast corner of Palm Desert Country Club. He went on to say that the property consisted of 140 one-bedroom apartments in one-story, low- pitched roof, block building construction. The property was acquired in March 2003, and for the last 18 months, staff had been working with various professional services providers to develop an improvement plan. He said it began with renovating interiors of each unit at a cost of $9,000-$10,000 � PRELIMINARY MINUTES PALM DESERT HOUSING AUTHORITY MEETING MARCH 9, 2006 each, with 120 of them completed to date; the improvements had dramatically improved the living conditions for those tenants. At this time, staff was seeking ability to work on the building exteriors to upgrade the appearance of the property, and he called attention to the color renderings included in the staff reports. He pointed out that staff was still working on Phase B for the property--site improvements including parking lot, carports, maintenance shop, and new entry to the new leasing office—about four orfive months from now. In further response, he confirmed that the structures were very sound; they were built in 1961 and showed no structural deterioration, but he said part of the plan with addressing the exterior renovations would also provide Code upgrades (i.e., draft stops between the units, energy efficiency features). With regard to question about the vacancy rate, he responded that it was minimal at this property. He said now that the interior renovations had been comp(eted on 120 of the units, they were all occupied; he estimated there were 11 units that hadn't been renovated and were vacant for that reason. He said they'd been able to renovate five or six units per month, and there were still a handful of tenants that wanted their unit renovated; therefore, staff was making plans with them for the latter part of the interior rehabilitation to switch them out and back into the unit of their preference. He said in addition to the 140 one-bedroom units, there was a manager's unit that was two-bedroom. Member Benson moved to, by Minute Motion: 1) Authorize award of the subject contract in the amount of $4,948,249 to Portrait Homes, Inc., Corona, California, to conduct exterior renovations for Phase A at California Villas, including the base contract, Alternate Nos. 1 and 6, and Allowance Nos. 2, 3, 4, and 5; 2) authorize the Director of Finance to set aside the amount of $494,824.90 as 10°/a contingency (use of contingency requires additional action); 3) authorize the Chairman to execute the contract; 4) authorize the Director of Finance to appropriate $5,443,074 to Account No. 871-8680-466-4001 for this project. Motion was seconded by Spiegel and carried by a 5-0 vote. IX. PUBLIC HEARINGS None � PRELIMINARY MINUTES PALM DESERT HOUSING AUTHORITY MEETING MARCH 9, 2006 X. REPORTS, REMARKS, AND AGENCY BOARD ITEMS REQUIRING ACTION A. EXECUTIVE DIRECTOR None B. AUTHORITY COUNSEL None C. CHAIRMAN AND MEMBERS OF THE AUTHORITY None XI. ADJOURNMENT Upon motion by Crites, second by Spiegei, and 5-0 vote of the Housing Authority Board, Chairman Ferguson adjourned the meeting at 5:18 p.m. JIM FERGUSON, CHAIRMAN ATTEST: RACHELLE D. KLASSEN, SECRETARY PALM DESERT HOUSING AUTHORITY 5