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HomeMy WebLinkAboutHOUSG CMSN - 02/13/08PALM DESERT REDEVELOPMENT AGENCY INTEROFFICE MEMORANDUM TO: RACHELLE KLASSEN, CITY CLERK FROM: PATTY LEON, RECORDING SECRETARY DATE: MARCH 13, 2008 SUBJECT: HOUSING COMMISSION MINUTES Attached are the following Housing Commission Meeting Minutes approved at the Housing Commission meeting held March 12, 2008: ➢ February 13, 2008 Please submit to the Housing Authority Board. Thank you. cc: Carlos L. Ortega, Executive Director ttECe-ivC-L11 El I& BY HOUSG AUTH ON ?) ° 9-1' g VERIFIED BY: IN . i Mr Original on file with City Clerk's Office CITY OF PALM DESERT HOUSING COMMISSION MINUTES FEBRUARY 13, 2008 I. CALL TO ORDER Leo Sullivan, Housing Commission Chair, convened the meeting at 3:30 p.m. II. ROLL CALL Present: Members Absent: Jane Turner Natalie Russo Verna Smith Leo Sullivan Also Present: Linda Ward Richard S. Kelly, Councilmember Liaison Justin McCarthy, ACM for Redevelopment Dave Yrigoyen, Director of Redevelopment/Housing Janet Moore, Director of Housing Martin Alvarez, Redevelopment Manager Jessica Gonzales, Management Analyst Patty Leon, Recording Secretary Guest(s): Teresa Vakili, RPM Company Ryan Stendell, Associate Planner III. ORAL COMMUNICATIONS Ryan Stendell was introduced to the Commission. Mr. Stendell was in attendance to discuss the Housing Element under Informational Items. IV. CONSENT CALENDAR Housing Commission Minutes February 13, 2008 A. MINUTES of the Regular Housing Commission meeting of December 12, 2007 and January 9, 2008 With a Motion made by Commissioner Smith and seconded by Commissioner Turner the minutes of December 12, 2007, were unanimously approved. With a Motion made by Commissioner Turner and seconded by Commissioner Smith the minutes of January 9, 2008 were unanimously approved. A correction was made to page 9 of the minutes of January 9th to reflect the correct adjourned meeting date. V. REPORTS AND REMARKS A. COMMISSION REPORTS Janet Moore updated the Commission on Country Village with regard to the relocation plan. At the request of the City Attorney, the relocation plan was pulled from the City Council Agenda as well as the plans to demolish the apartments. They are currently off calendar until the City Attorney requests that they move forward. Mrs. Moore stated that staff was considering scheduling a meeting the first part of April to meet with the Adhoc sub -committee but that may depend on the City Attorney at this point. Staff will notify the sub -committee members of a date once confirmed. Martin Alvarez reported that a meeting took place on Saturday, February 9, 2008, with the Palm Desert Country Club Homeowners Association to discuss future plans for Country Village. A presentation was made regarding the identification of the site and the direction received from the Adhoc subcommittee and the City Council in relation to its future development. The relocation plan was explained as well as staffs recommendation to proceed with a demolition plan. It was explained that the idea is to build an affordable senior complex with a possible paramedic and fire station. The concept was said to be on hold until further direction. Also mentioned was Casey's negotiation to possibly acquire that portion of the site. Mr. Alvarez noted that the members of the Homeowners Association were receptive to the plans mentioned. Once a more defined site plan is confirmed, staff will present that information to the Palm Desert Country Club Homeowners Association at a future meeting. 2 Housing Commission Minutes February 13, 2008 Jane Turner asked if Country Village was part of Palm Desert Country Club Homeowners Association. Justin McCarthy stated that Country Village is not part of the Homeowners Association but since it is adjacent to Palm Desert Country Club it would serve as a gateway. Upon question of any objections from the Homeowners Association, Janet Moore reported that the only objection was for a multi -family complex but the HOA was in favor of the idea of a senior complex. 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 December. Leo Sullivan inquired on the occupancy status for Palm Village Apartments. Teresa Vakili stated that the leasing office is having difficulties qualifying applicants. Mr. Sullivan inquired on the waiting list in place and asked if applicants were pre -qualified prior to the completion of the property. Ms. Vakili responded that applicants were pre -qualified to be placed on the waiting list but once they were contacted to verify income, credit, and criminal background checks most applicants did not qualify and were rejected. She reported that as of January there are a total of 25 occupants and 11 vacancies. She anticipates 100% occupancy by March. D. REPORT #1 - MONTHLY OCCUPANCY AND AVERAGE RENT STATEMENT The Commission reviewed the Monthly Occupancy and Average Rent Statement for December. 3 Housing Commission Minutes February 13, 2008 E. REPORT #2 — MONTHLY NET OPERATING INCOME STATEMENTS The Commission reviewed the Monthly Net Operating Income Statements for December. F. HOUSING AUTHORITY PROPERTIES UPDATE (JAMES) The update on the Housing Authority properties was reviewed by the Commission. Pictures of the ongoing construction at Laguna Palms were circulated. Leo Sullivan referenced the report and questioned the repairs to the damaged ceiling at a unit at Candlewood Apartments. Teresa Vakili responded that those damages were minor and required replacement of loose tiles that were broken due to the heavy rains. She noted that overall the properties did very well through the recent rains, with only minor repairs such as roof patches at Las Serenas and One Quail Place. Upon question, Martin Alvarez clarified why the sub -standard wall at Laguna Palms was demolished. He stated that a change order was brought forward to this Commission at the last meeting to address the condition of the existing easterly wall. The wall was built by the adjacent property's developer in conjunction with a sub -division to the east. The wall is non -compliant with standard codes and is a health and safety issue and therefore will be replaced. Natalie Russo questioned the removal of the master pins from all locks at La Rocca Villas. Teresa Vakili replied that once RPM Company takes over a property all locks are rekeyed and the developer's master pin is removed. Mr. Sullivan inquired on the incident that took place at One Quail Place and asked if the victim was a tenant. Janet Moore replied that the victim was not a tenant and the sheriff department has taken over the investigation. Mr. Sullivan questioned the replacement of two complete cable lines for two units at Palm Village Apartments and asked why it was not done originally. 4 Housing Commission Minutes February 13, 2008 Ms. Vakili stated that with any new construction there are replacements and corrections that need to be addressed after the property is complete. G. Report on Housing Production Needs by Category As a request from the last meeting, a report on the Housing Production Needs by Category was provided to the Commission for review. Janet Moore summarized the report. In efforts to accomplish the requirements listed on the report, Justin McCarthy also noted that the Planning Department will put a greater responsibility to developers with regard to the number of affordable units, noting that it would be more financially feasible way to produce units as opposed to building them. Leo Sullivan mentioned some of the issues with the slow market and asked what the City is looking at. Mr. McCarthy agreed that there has been some single-family developers that have vacated the market. He stated there are developers, who have come forward, that have shown interest in building multi -family units that might work in this market. NEW BUSINESS A. CALIFORNIA VILLAS — PHASE B Martin Alvarez distributed a site map of California Villas' location. He reviewed the staff report, stating that two bids were received with the lowest bid from Doug Wall in the amount $3,137,505. The cost was said to be reasonable and within industry standards. Leo Sullivan asked if staff had researched Mr. Wall's background with respect to his construction projects and reported that Mr. Wall is currently in foreclosure on several properties with two local bank institutions. He expressed concern with the award of contract and requested that staff consider a stringent bond requirement. He noted that he personally knew of several properties that were taken back from a local bank due to Mr. Wall's performance. He further noted that he knows Mr. Wall is a good builder but strongly urged that we get a stringent performance bond; the best one we could find. Mr. Alvarez replied that staff would further review this matter and noted that we do have a standard construction bond that has to be met. 5 Housing Commission Minutes February 13, 2008 Justin McCarthy stated that Mr. Wall posted his bond as part of the bid process and advised that our standard bond requirement is for a complete construction. Mr. Sullivan asked if a more stringent type of bond would be considered since he felt that if Mr. Wall might try to take from our project to pay for his other unfinished projects. Mr. McCarthy stated the Mr. Wall provided a completion bond that is called into effect should he default. He noted that performance payments are predicated upon our acceptance of the work; therefore Mr. Wall would not receive any type of payment in advance during the construction process. In addition, there is construction management on site that will monitor and validate his payment submittals. He further stated that there are controlled mechanisms built into the bidding process as well as a retention portion of 10%. Natalie Russo asked if we had the ability to ask Mr. Wall of his financial situations. Mr. McCarthy stated that there are a number of protections that are part of the bidding process. The bid would have been rejected if a determination was made that Mr. Wall is not an acceptable bidder. He advised that the bond process is structured via State Law. Given that there was a variance in the cost between both bids submitted, staff verified each line item within Mr. Wall's bid and found it to be reasonable. Dave Yrigoyen agreed and stated that we have a stringent requirement with regard to performance bonds from the contractor. Mr. Wall is being hired as a contractor and not a developer and therefore he is putting his contractor's license on the line in order to accomplish this project. Upon question, Mr. Alvarez stated that one of the major differences verified in the bid amounts is that Mr. Wall is a local contractor who will use local sub- contractors. Portrait Homes proposed to use subcontractors based outside the area which can be significant in cost. He noted that Portrait Homes was the contractor for Laguna Palms and Phase A improvements at California Villas. Mr. Sullivan asked if there were any other bidders besides Portrait Homes. Mr. Alvarez replied that there was a lot of interest at the pre -bid meeting, however only two bids were received. Mr. Sullivan asked about Portrait Homes past experience with the Agency. 6 Housing Commission Minutes February 13, 2008 Mr. Alvarez stated that to date Portrait Homes has completed work satisfactorily. Rec: By Minute Motion: Action: Motion was made by Commissioner Turner and seconded by Commissioner Smith to forward a recommendation to the Palm Desert Housing Authority Board to authorize award of contract no. HA-23650-C to Doug Wall Construction, Inc. (Bermuda Dunes, CA) in the amount of $3,137,505.00 to construct Phase B site renovations at California Villas VII. CONTINUED BUSINESS A. REVISED MID -YEAR 2007/2008 BUDGET ADJUSTMENT Janet Moore reviewed the revised appropriations operating budget provided to the Commission. She stated that the change was highlighted to show a $50,000 increase to Taos Palms Apartments. Several tenants moved out and/or asked to be transferred to Palm Village Apartments which presented the opportunity to renovate those units. Taos Palms was said to have some of the oldest interiors from most of our properties. Rec: By Minute Motion: Action: Motion was made by Commissioner Smith and seconded by Commissioner Russo to forward a recommendation to the Palm Desert Housing Authority Board to forward to the Finance Director the recommendation to request approval of the revised mid -year budget adjustment for Taos Palms Apartments. VIII. INFORMATIONAL ITEMS A. HOUSING ELEMENT Ryan Stendell provided an informational update on the Housing Element. He stated that the Planning Department is responsible for the General Plan and the Housing Element. The Housing Element will be a planning period from 2008 through 2014. He stated that there have been a significant amount of changes in the state law since the last planning period. The California Department of Housing and Community Development (HCD) is now requiring a detailed 7 Housing Commission Minutes February 13, 2008 analysis with respect to where housing units should go and the number of units that could reasonably go there. He stated that a contract has been awarded for a consultant to assist in this process. The first public outreach meeting is scheduled next week, notices were sent to developers, local Employment Development Departments (EDD), and county social services. Subsequently, a community outreach meeting will be scheduled to invite the general public via notice in the newspaper. Mr. Stendell stated that one minor concern to consider is that HCD stated that if we don't have the zoning for the required units, the Planning Department will have to rezone property. Mr. Stendell further noted that this will be a much more comprehensive element than the previous elements. Leo Sullivan stated that one of the projects on Gerald Ford converted from condos to apartments and asked if we got our share of units on that property. Janet Moore replied yes pursuant to the requirement on that property. Mr. Stendell stated that there is a condo conversion ordinance in place which restricts the ability to convert condos to apartments depending on the vacancy rate in the City. Mr. Sullivan asked if there was any land left to be able to accommodate our needs. Mr. Stendell stated that the consultants are in the process of working on this matter. Justin McCarthy asked if there has been precedent for a revision of the Regional Housing Needs Assessment (RHNA) numbers downward with respect to the market conditions we are experiencing now. Mr. Stendell stated that at a Coachella Valley Association of Governments (CVAG) meeting, a representative from HCD stated no but that he would ask further questions regarding this issue. Richard Kelly inquired if anyone has been prosecuted for violating the RHNA. Mr. Stendell stated that if we do not have an element that is certified by HCD than we are technically running outside of state law. B. City of Palm Desert City Council, Redevelopment Agency, and Housing Authority Strategic Objectives 8 Housing Commission Minutes February 13, 2008 The Commission was provided with an informational packet regarding the Strategic Objectives for the City. Janet Moore stated that the City Council met with certain members of staff to determine strategic objectives for the City. It was explained that since Housing is already established as what we have to do, it was not made part of the goals listed and only those items that have not been established were made part of the list. Upon question, Justin McCarthy provided a brief update on the recommendations of the potential Desert Willow hotel. C. HOUSING AUTHORITY NEWSLETTER (February) Newsletters were reviewed by the Commission. D. AGENCY HOME IMPROVEMENT PROGRAM UPDATE An update on the Home Improvement Program (HIP) was provided to the Commission for review. Janet Moore stated that an article was published in the Brightside regarding the Home Improvement Program. The HIP will be published twice in the Brightside, once in the fall to focus on roofing issues and once in the spring to focus on AC issues. Mrs. Moore stated that the mobile home aspect that was adopted in July has been extremely popular. She noted that there have been quite a few applicants from mobile home parks. She mentioned the additional issues with respect to obtaining approvals from either the Homeowners Association and/or the different owners of the land. She referenced the report and stated that on the average we have completed two projects a month. E. Phase II 20-Acre Site Update: Falcon Crest La Rocca Villas Martin Alvarez summarized the update provided by Cathy Walker. 9 Housing Commission Minutes February 13, 2008 Leo Sullivan asked on the number of self-help homes to which Mr. Alvarez responded 14. Janet Moore stated that the self-help lots will be built as part of the next RHNA cycle. A request for proposals will be prepared for this project. She stated that several non-profit organizations have indicated an interest but are concerned that they have to build all fourteen homes at once. Staff has not made a determination whether we would consider building either one or two at a time or all at once. Mrs. Moore stated that this project will probably be completed within the next three to four years. Upon question of the vacant lot located on El Cortez, Mrs. Moore stated that the lot was donated to Habitat for Humanity. She explained some the difficulties Habitat is experiencing with respect to the construction aspect. The previous contractor who was also the developer for Big Horn is no longer assisting Habitat for Humanity. A copy of the letter to Community Dynamics from the U.S. Department of Housing and Urban Development was provided to the Commission for review. Mrs. Moore stated that Ruthann Moore, Economic Development Manager, attended the ceremony to accept the award on behalf of the City Council. At this time, Janet Moore reported that the Housing Tour has been canceled. A pre -opening of Laguna Palms has been scheduled for March 7, 2008 at 10:00 a.m. instead of the tour. As an alternative to the annual tour of all the properties, staff is proposing an informal visit to a few properties such as the new complex recently acquired, revisit the community room at Catalina Gardens, as well as a renovated unit at Taos Palms. The tour is expected to take approximately one hour; a date has not been determined. Mrs. Moore asked if any of the Commissioners were interested in revisiting any of the other properties to let her know. IX. NEXT MEETING DATE - MARCH 12, 2008 ADJOURNMENT With members of the Housing Commission concurrence Leo Sullivan, Housing Commission Chair, adjourned the meeting at 4:30 p.m. to March 12, 2008. Patty Leon, Recording Secretary 10