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HomeMy WebLinkAboutHousing Cmsn - 05/07/08TO: FROM: DATE: DIB PALM DESERT REDEVELOPMENT AGENCY INTEROFFICE MEMORANDUM RACHELLE KLASSEN, CITY CLERK PATTY LEON, RECORDING SECRETAR MAY 15, 2008 SUBJECT: HOUSING COMMISSION MINUTES Attached is the following Housing Commission Meeting Minutes approved at the Housing Commission meeting held May 7, 2008: ➢ April 9, 2008 Please submit to the Housing Authority Board. Thank you. cc: Carlos L. Ortega, Executive Director rece‘1e F �� RY HOUSG AUTH 5-0 ON (o VERIFIED BY:.I r� Original on file with City Clerk's Office CITY OF PALM DESERT HOUSING COMMISSION MINUTES April 9 2008 I. CALL TO ORDER Leo Sullivan, Housing Commission Chair, convened the meeting at 3:30 p.m. II. ROLL CALL Present: Members Absent: Donna Lewis Natalie Russo Verna Smith Leo Sullivan Jane Turner Also Present: Linda Ward Bob Spiegel, Councilmember Liaison Justin McCarthy, ACM for Redevelopment Dave Yrigoyen, Director of Redevelopment/Housing Janet Moore, Director of Housing Martin Alvarez, Redevelopment Manager James Conway, Project Coordinator Jessica Gonzales, Management Analyst Patty Leon, Recording Secretary Guest(s): Jim Foley, RPM Company Teresa Vakiii, RPM Company Ron Tucker, Potential Housing Commissioner III. ORAL COMMUNICATIONS IV. CONSENT CALENDAR A. MINUTES of the Regular Housing Commission meeting of March 12, 2008. Housing Commission Minutes April 9, 2008 With a Motion made by Commissioner Smith and seconded by Commissioner Turner the minutes of March 12, 2008 were unanimously approved. V. REPORTS AND REMARKS A. COMMISSION REPORTS Janet Moore stated that the Landscape Manager, Spencer Knight, recently completed the annual tree trimming contracts and requested that three staff reports, distributed to the Commission, be added to the Agenda under New Business for review and recommendation. She noted that the staff reports will be forwarded to the City Council meeting of April 24th to meet the tree trimming cycle. A Motion was made by Commissioner Turner and seconded by Commissioner Smith to add Contract No's, C27450, C27440, and C27430 to the Agenda for discussion under New Business. B. SUMMARY OF CITY COUNCIL AND REDEVELOPMENT AGENCY AGENDA ITEMS RELATED TO HOUSING, AND SUMMARY OF CITY COUNCIL, HOUSING AUTHORITY, AND REDEVELOPMENT AGENCY ACTIONS The summary was reviewed by the Commission. C. RPM MONTHLY STATUS REPORTS The Commission reviewed the Monthly Status Report for February. At this time, Leo Sullivan introduced Mayor Pro-tem Councilmember Bob Spiegel to the Commission and guests. Also introduced were Jim Foley, Vice President for RPM Company and Teresa Vakili, Regional Supervisor for RPM Company. D. REPORT #1 - MONTHLY OCCUPANCY AND AVERAGE RENT STATEMENT The Commission reviewed the Monthly Occupancy and Average Rent Statement for February. Leo Sullivan inquired on Sagecrest not listed on the report. Teresa Vakili stated that Sagecrest will be listed in next month's report since the property closed escrow on February 29, 2008. 2 Housing Commission Minutes April 9, 2008 E. REPORT #2 — MONTHLY NET OPERATING INCOME STATEMENTS The Commission reviewed the Monthly Net Operating Income Statements for February. Leo Sullivan inquired on a time frame of when the moderate categories will be down to a minimal number of tenants. Teresa Vakili reported an average of 78 moderate families, between 80% and 120% of the county median, within the 1100 units. Those families qualify for the affordable program unless they exceed the 120%. She stated that based on the new HCD income limits for 2008 the report will fluctuate and anticipates a decrease in the moderate categories. F HOUSING AUTHORITY PROPERTIES UPDATE The update on the Housing Authority properties was reviewed by the Commission. James Conway summarized the report highlighting the major projects in progress such as California Villas Phase B and Laguna Palms fire inspection completion. Verna Smith inquired on the completed unit inspection at Country Village. Janet Moore stated that a site review is in process for Country Village. Bryce White inspected a couple of units to determine what type of environmental testing would be necessary and the suitable consultants to seek. With regard to the Adhoc Sub -committee meeting, Janet Moore reported that the meeting was postponed to allow Commissioner Linda Ward who is apparently very ill the opportunity to attend and receive appropriate comments from both Housing Commissioners appointed. Mrs. Moore stated that the developer of Palm Desert Country Club's attorney is reviewing all actions brought before the City Council with regard to Country Village. At the request of our City Attorney actions related to the relocation and design for deconstruction have been postponed pending his review. Martin Alvarez stated that he anticipates moving forward with both action items to the City Council at their first meeting in May. Subsequent to the approval of the relocation plan, an architect will be selected to prepare the deconstruction plans. 3 Housing Commission Minutes April 9, 2008 Upon question, Mr. Alvarez stated that the deconstruction plan will allow an environmentally friendly deconstruction process as well as work toward a LEED certification. Leo Sullivan inquired on the items that may possibly be reused. Mr. Alvarez noted that he was not certain but possibly the wood, rafters, etc., exclusion of appliances. It was noted that the intent is to reuse the recycled materials on Country Village site if possible. Mr. Alvarez further noted that the primary focus is the recycling of certain materials such as pavements, concrete, etc. in general. Justin McCarthy stated that there are a number of items that allow points under the Leadership in Energy and Environmental Design (LEED) certification program also known as Green Building. He explained how there are certain requirements with respect to the deconstruction of buildings in a way that could be salvaged or recycled as opposed to using the landfills. He stated that a notice was received from the members of the Palm Desert Country Club and how they felt we were not incompliance with the California Environmental Quality Act (CEQA). Staff addressed those concerns, which caused a small delay, and found that we are in compliance with the guidelines of CEQA. He further noted that this particular action is not necessarily sequential to the design process. Mr. Alvarez stated that Reuel Young with Interactive Design is contracted for the design concept. Mr. Young has submitted a preliminary concept of the site plan and is currently in review by staff as well as the Planning and Public Works Departments. The Commission suggested appointing an additional Housing Commission member to the Adhoc Subcommittee without replacing anyone to move forward with the project. Jane Turner volunteered as an alternative member to the Adhoc Sub -Committee. Mr. McCarthy stated that the City Council also directed staff to cooperate and coordinate with the members of the Palm Desert Country Club with respect to Country Village master plan which includes Casey's, a fire station, and the apartments. A Motion was made by Commissioner Smith and seconded by Commissioner Russo to appoint Jane Turner as an alternate member to the Housing Adhoc Subcommittee in the event one of the members of the commission is not able to attend. 4 Housing Commission Minutes April 9, 2008 G. PALM DESERT HOUSING AUTHORITY SURVEY RESULTS The Commission was provided with the results of the survey mailed to all Palm Desert Housing Authority tenants. Janet Moore stated that the surveys are anonymously sent to all tenants and are color coded to distinguish which property the survey was received from. She noted that only those surveys received back via mail are counted as opposed to those that were hand delivered to the property managers. She noted that an impartial third party, not involved in the properties, tabulated the results of the surveys and comments. Subsequently, staff reviewed the comments and results to ensure they were accumulated appropriately. Mrs. Moore summarized the Overall Results report and stated that 36% of total units eligible to survey were received which excluded Country Village, Laguna Palms, La Rocca Villas, Palm Village, Pueblos East and Sagecrest. She noted that the fair and poor responses were discussed with RPM Company earlier that day. She stated that RPM Company received the survey report at the same time the Housing Commission and reviews the results very closely with their staff. Jim Foley stated that they do review the survey results and are considered very seriously. Leo Sullivan commented that it has improved from the past years and how this survey is the best that he has seen so far. Jane Turner expressed concern with the small representation from tenants. Mrs. Moore stated that it is difficult to determine the reasons tenants do not return the surveys because often times if things are fine, people have a tendency to ignore them, but felt that the overall results assisted staff with their review. NEW BUSINESS A. AWARD CONTRACT NO. C27450 TO TREE RITE OF BERMUDA DUNES FOR THE CITYWIDE TREE REMOVAL PROGRAM (PROJECT NO. 933-08) B. AWARD CONTRACT NO. C27440 TO WEST COAST ARBORIST, INC. OF OF ANAHEIM, CALIFORNIA FOR THE CITYWIDE TREE PRUNING PROGRAM (PROJECT NO. 932-08) 5 Housing Commission Minutes April 9, 2008 C. AWARD CONTRACT NO. C27430 TO TREE RITE OF BERMUDA DUNES FOR THE CITYWIDE PALM TREE PRUNING AND REMOVAL PROGRAM (PROJECT NO. 931-08) As previously mentioned, Janet Moore reiterated that Spencer Knight did not want to miss the pruning schedule by waiting until May for approvals. In the future, he will try to get these reports to the Commission in a timely manner. Spencer Knight apologized for the short notice to review the reports. He stated that the two reports as previously done in the past years consists of tree trimming and pruning cycles which includes Housing Authority and City trees in order to obtain a better unit cost. The third staff report consists of the removal of trees. Mr. Knight stated that in the past, there was difficulty with the vendors getting the trees removed on time. Therefore, a separate contract to remove the trees along with the palm tree pruning is being requested in hopes this project is complete by the summer months. Upon question of the time sensitive, Mr. Knight stated that this project has to be completed by May 15th. He provided an explanation of the process of removing the foliage from the trees and exposing them to sunlight to allow for re -growth. If the foliage is exposed to too much sunlight it can get sun burn and damage the tissue underneath the bark which is difficult to recover. Mrs. Moore stated that Mr. Knight's department is also considerate of the residents needs such as the trimming of palm trees after they flower or sometimes before to avoid flowers in the pool. Mr. Bob Spiegel commented that One Quail Place was a real big problem and asked if the issue with the trees was resolved. Mr. Knight stated that it has improved in terms of the healthy tree population at One Quail Place. Mr. Spiegel asked if the wind had damaged any trees. Mr. Knight responded that there was minor wind damage this year than last year. Jane Turner inquired on the unit costs of these contracts. Mr. Knight responded that the unit costs were listed on the proposals which were included in the bid package received. 6 Housing Commission Minutes April 9, 2008 Rec: By Minute Motion: Action: Motion was made by Commissioner Turner and seconded by Commissioner Russo to forward a recommendation to the Palm Desert Housing Authority Board to award Contract No. C27450 to Tree Rite of Bermuda Dunes, California for the citywide tree removal program Rec: By Minute Motion: Action: Motion was made by Commissioner Turner and seconded by Commissioner Russo to forward a recommendation to the Palm Desert Housing Authority Board to award Contract No. C27440 to West Coast Arborist, Inc. of Anaheim, California for the citywide tree pruning program (Project No. 932-08) Rec: By Minute Motion: Action: Motion was made by Commissioner Turner and seconded by Commissioner Russo to forward a recommendation to the Palm Desert Housing Authority Board to award Contract No. C27430 to Tree Rite of Bermuda Dunes, California for the citywide palm tree pruning and removal program D. RPM COMPANY FEE INCREASE Janet Moore reviewed the staff report, stating that although there was not a housing tour this year there were several events at the Housing Authority properties that showed their condition. In addition, consideration was given to the tenants' survey and periodic walk-through of the properties by staff members. Rec: By Minute Motion: Action: Motion was made by Commissioner Smith and seconded by Commissioner Turner to forward a recommendation to the Palm Desert Housing Authority Board to ratify an adjustment to the management fee property management services by and between the Palm Desert Housing Authority and Ray, Douglas, Ann and Patrick, Inc. A.K.A. RPM Company (HA 25970) 7 Housing Commission Minutes April 9, 2008 E. 2008-2009 HOUSING AUTHORITY BUDGET, ADMINISTRATIVE PLAN, AND REPLACEMENT RESERVE FUND. Janet Moore referenced the memo provided by Veronica Tapia which summarized the proposed budget that will be included in the City's Comprehensive Financial Plan with the Director of Finance. Leo Sullivan inquired on the capital improvements for La Rocca Villas. Mrs. Moore stated that there is a need for storage as previously mentioned by Linda Ward during the design discussion for La Rocca Villas. Staff is considering incorporating a pantry in the kitchen to store brooms and mops; currently stored on the patios. In order to maintain continuity, staff intends to match the pantry to the existing cabinetry in the kitchen. Jane Turner referenced the Totals for All Properties Budget Comparison sheet and asked if "Other Rental Income" was a new classification since there was nothing budgeted for 2007-2008. Mrs. Moore stated that those charges include late fees, credit report fees, etc. and are not necessarily rental fees. She noted that last year those charges were included in Other Rental Income, so she will review the amounts to see why there is nothing in the budget column for last year. Jane Turner asked how the amount budgeted for 2008-2009 Other Rental Income was determined. Mrs. Moore stated that a lot of the fees that were accrued or received last year are not recurring fees, given that most of the new properties are no longer fully occupied. She noted that income received for services such as laundry were to the properties and not a vendor as with all our other properties. She noted that staff would be more than happy to provide more information at the next Housing Commission meeting, and asked that the Commission forward a recommendation to the Director of Finance at this time with the understanding clarification is still needed for "Other Rental Income". Ms. Turner referenced the Capital Expenses for RPM and asked for clarification of what the item entails and commented on the significant amount budgeted for 2008-2009. Veronica Tapia stated that it depends on the timing of when RPM Company completes the capital improvements. She explained that out of the $674,764 budgeted for 2007-2008 only $214,717 was completed. 8 Housing Commission Minutes April 9, 2008 Mrs. Moore stated that the Deputy Finance Director requested that we make our very best effort to budget the exact expenses of what is anticipated. She stated that there are certain projects that we are not able to accomplish because of barriers at the properties themselves. Justin McCarthy noted that those budgeted amounts that are not used are not lost but rather reverted back to the Redevelopment Agency budget and are re - budgeted the following year. Leo Sullivan referenced Candlewood Apartments Budget Comparison and commented that the gross potential and rental income budgeted for 2008/09 is significantly lower than last year. Mrs. Moore stated that the gross potential income is generally what a property can potentially earn. This year the gross potential has been adjusted for average rents as opposed to a percentage of units at market rent. She noted that the county median incomes have gone up significantly for 2008; the area median for a family of 4 is $62,000. Staff found through recertifications that most tenants are at the lower level which ultimately reduces their rents. Mr. Sullivan commented that the amounts budgeted for gross potential income was significantly low. Teresa Vakili added that there were four market units at Candlewood Apartments that have moved out and those units are now leased under the affordable program which reduced gross potential income for this coming year. Ms. Turner referenced Catalina Gardens Budget Comparison and stated that the payroll expense budgeted for 2008 seemed low. Ms. Vakili stated that it was based on the turnaround of property managers which reduced the payroll. Councilmember Bob Spiegel asked on the number of staff members included in the payroll. Ms. Vakili responded that there are three staff members whose payroll is adjusted accordingly between Pueblos, Candlewood, and Catalina Gardens Apartments. Mr. Sullivan referenced Country Village Budget Comparison and asked what the utility services and repairs and maintenance included. Mrs. Moore stated that Country Village has a contracted cable service with Time Warner Cable that requires billing of all 66 units whether or not the units 9 Housing Commission Minutes April 9, 2008 are occupied. Staff has negotiated its termination contingent upon 100% vacancy of the property. Mr. Sullivan asked on the number of units occupied at Country Village; Mrs. Moore responded 12 units. Mrs. Moore stated that the budget will be forwarded to the City Council at their second meeting in June which will allow staff to clarify any concerns from the Commission in May. Mr. Sullivan stated that if the Commission approves the recommendation it is subject to the clarification previously addressed. Rec: By Minute Motion: Action: Motion was made by Commissioner Turner and seconded by Commissioner Smith to forward the recommendation to the Finance Director to include the 2008-2009 Palm Desert Authority Operating, Capital, and Replacement Budgets in the City of Palm Desert's Comprehensive Plan for 2008-2009 to be presented to the Housing Authority Board for approval at a future meeting with the caveat that a clarification be provided to the Commission in May regarding "Other Rental Income". Administrative Plan A copy of the Administrative Plan and Reserve Plan was provided to the Commission for review. Leo Sullivan referenced the Administrative Plan and commented on how there was no wording with respect to the Housing Commission. Janet Moore stated that the Administrative Plan is policies and procedures that the management company is required to implement. She stated that a definition with regard to the Housing Commission may be added to the plan. Mr. Sullivan stated that the Administrative Plan lists the Housing Authority first and then the management company and felt that the Housing Commission should be listed in between. Justin McCarthy stated that the Housing Commission is an advisory body to the Housing Authority. The Housing Authority is the contracting entity which has the direct line of authority to RPM Company. He stated that wording may be added with the Commissioners' consent. 10 Housing Commission Minutes April 9, 2008 Mr. Sullivan stated he would like wording in the plan with regard to the Housing Commission since he felt they oversee what the management company does. Mrs. Moore noted that a statement will be added to the Administrative Plan with regard to the Housing Commission and their task of reviewing and advising the Housing Authority board on matters that come before the Housing Authority. Rec: By Minute Motion: Action: Motion was made by Commissioner Russo and seconded by Commissioner Smith to forward a recommendation to the Finance Director to include the Administrative Plan, with a statement in the policy and procedures with regard to the Housing Commission as the advisory board to the Housing Authority, in the City of Palm Desert's Comprehensive Plan for 2008-2009 to be presented to the Housing Authority board for approval at a future meeting; opposed Commissioner Turner. Jane Turner inquired on the legal status as a criterion. Mrs. Moore referenced Exhibit B Non-exclusive List of Required and Permissive Background Check Information by Type of Funding. She stated that the immigration status and/or residency listed have been recently challenged. Our legal counsel is currently reviewing the new law that passed with respect to immigration laws in the United States. She further noted that the challenge might not affect government properties but rather privately owned units. In the event there is a change in the law, this Exhibit may be amended. Reserve Plan Jane Turner asked if the $250 per unit seemed reasonable and if this was a first step to this new funding process. Janet Moore stated that the Replacement Reserve Fund will be established this year. The $250 is a base amount and may change if staff feels the amounts are too low based on our experience at the properties. In the past, with the consent of the Finance Director, the entire fund balance was reserved for continued operations and replacement items. The $250 per unit cost was determined based on a reserve study conducted several years ago but found the reserve to be significantly high at that time. Leo Sullivan asked if some of these items are part of the capital improvements already established for the properties. 11 Housing Commission Minutes April 9, 2008 Mrs. Moore explained the difference between replacement items and capital improvements. Replacements are components of the property that are on- going routines meaning every other year or so. Capital improvements are items that are periodically added or replaced at a property. She provided a brief explanation of the carports and how it was used as a capital improvement since that project is only done once every 10 years or so. However, the replacement of beams and posts will be made part of the replacement reserve fund. She noted that the intent of the reserve fund is strictly for replacements of certain items which are ongoing such as major appliances, Tight fixtures, etc. Upon question of bid advertising for appliances, Mrs. Moore indicated that appliances have become very inexpensive and have a short life span and therefore do not necessarily require a formal bid process. Currently we are replacing appliances through our repair and maintenance fund. Rec: By Minute Motion: Action: Motion was made by Commissioner Russo and seconded by Commissioner Smith to forward the recommendation to the Finance Director to include the Replacement Reserve Fund in the City of Palm Desert's Comprehensive Plan for 2008-2009 to be presented to the Housing Authority Board for approval at a future meeting. VII. CONTINUED BUSINESS VIII. INFORMATIONAL ITEMS A. HOUSING AUTHORITY NEWSLETTER (April) Newsletters were provided to the Commission for April. Janet Moore stated that the Newsletters are getting bigger and more expensive to mail since we have more properties. She asked the Commission if they preferred to pick up the newsletters at the meetings or mailed in their agenda packet. The Commission agreed that the newsletters will be provided at the meetings versus mailing with the agenda packets. B. AGENCY HOME IMPROVEMENT PROGRAM UPDATE An update on the Home Improvement Program (HIP) was provided to the Commission for review. 12 Housing Commission Minutes April 9, 2008 James Conway referenced the report and reported 27 applicants that are in various stages. Janet Moore stated that the manufactured home component of the program has become very popular. Seven new applications have been received from manufactured home parks that are not listed on the report. C. FALCON CREST Martin Alvarez stated that the Homeowners Association governed by homeowners is now in effect at Falcon Crest. Leo Sullivan asked if we had a reserve plan for Falcon Crest in the event that any issues come up. Janet Moore stated that there was a capital reserve established at the time each home was sold and that was considered the contribution. There is a one year warranty on customer service. As requested at the last meeting, a memo was provided to the Commission with the status of tenants purchasing at Falcon Crest. Jessica Gonzales summarized the memo and stated that there are a total of seven who qualified and closed escrow at Falcon Crest. IX. NEXT MEETING DATE — May 7, 2008 ADJOURNMENT With members of the Housing Commission concurrence Leo Sullivan, Housing Commission Chair, adjourned the meeting at 4:34 p.m. to May 7, 2008. Cueb0 �i1.Ec�v Patty Leon, Recording Secretary 13