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PALM DESERT REDEVELOPMENT AGENCY
INTEROFFICE MEMORANDUM
TO: RACHELLE KLASSEN, CITY CLERK
FROM: PATTY LEON, RECORDING SECRETAR
DATE: NOVEMBER 12, 2009
SUBJECT: HOUSING COMMISSION MINUTES
Attached is the following Housing Commission Meeting Minutes approved at the Housing
Commission meeting held November 10, 2009:
>. October 7, 2009
Please submit to the Housing Authority Board.
Thank you.
cc: John M. Wohlmuth, Executive Director
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VERIFIED VERIFIED BY 1(213 K- // y�
Original on file with City Clerk's Office
CITY OF PALM DESERT
ADJOURNED REGULAR
HOUSING COMMISSION MEETING
MINUTES
OCTOBER 7, 2009
I. CALL TO ORDER
Natalie Russo, Housing Commission Vice -Chair, convened the meeting at 3:30
p.m.
II. ROLL CALL
Present: Members Absent:
Donna Lewis Verna Smith
Natalie Russo
Jane Turner
Wade Tucker
Also Present:
Richard S. Kelly, Councilmember Liaison
Janet Moore, Director of Housing
Jessica Gonzales, Management Analyst
James Conway, Project Coordinator
Patty Leon, Recording Secretary
Guest(s):
Teresa Vakili, RPM Company
Spencer Knight, Landscape Director
III. ORAL COMMUNICATIONS
IV. CONSENT CALENDAR
A. MINUTES of the Regular Housing Commission meeting of September 9, 2009.
With a Motion made by Commissioner Tucker and seconded by
Commissioner Lewis the minutes of September 9, 2009 were unanimously
approved with Commissioner Turner abstaining.
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Housing Commission
Minutes OCTOBER 7, 2009
Wade Tucker referenced page 2 of the minutes and clarified his question of
why Country Village was being named after Carlos Ortega. He stated that he
did not want to sound like he was not in favor of the dedication and was only
questioning why a housing complex and not a commercial building or a street
such as Bob Hope and Fred Waring.
Natalie Russo commented that she did not read the minutes that way but she
appreciated his concern and clarification.
With Mr. Tucker's consent, the minutes of September 9, 2009 were approved
as presented with the understanding that a clarification regarding his previous
statements be provided in the October 7, 2009 minutes.
V. REPORTS AND REMARKS
A. COMMISSION REPORTS
B. SUMMARY OF CITY COUNCIL, REDEVELOPMENT AGENCY, AND
HOUSING AUTHORITY AGENDA ITEMS AND ACTIONS
The summary was reviewed by the Commission.
C. MONTHLY OCCUPANCY STATUS REPORT
RPM WEEKLY ACTIVITY STATISTICS
The Commission reviewed the Monthly Occupancy Status Report and Weekly
Activity Statistics for August.
Natalie Russo referenced the Weekly Activity Statistics report and asked on the
high number under "Leases Expiring This Period" particularly One Quail Place.
Teresa Vakili stated that those numbers fluctuate depending on move -ins and
renewals. She noted that One Quail Place will have 55 renewals one month
and next month will only have five. September is considered a busy move -in
month due to back to school and therefore the report will reflect a high
percentage in Lease Renewals for the month of August.
Wade Tucker commented that he had seen a notice posted on the office door
at Las Serenas that read staff was in a safety meeting and asked if the Housing
Commission members should attend those meetings as well.
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Housing Commission
Minutes OCTOBER 7, 2009
Ms. Vakili stated that RPM Company must hold safety meetings once a month
for all internal RPM staff as a requirement by law.
D. REPORT #1 - MONTHLY OCCUPANCY AND AVERAGE RENT STATEMENT
The Commission reviewed the Monthly Occupancy and Average Rent
Statement for August.
E. REPORT #2 — MONTHLY NET OPERATING INCOME STATEMENTS
The Commission reviewed the Monthly Net Operating Income Statements for
August.
Natalie Russo referenced the Net Operating Income on page 3 of the report
and asked if the Agency's goal is to break even or if there was a certain goal
per unit.
Janet Moore stated that when the Agency first acquired the properties the goal
at that point was to break even. Since that time, the Agency has added projects
that are not necessarily Housing Authority projects but rather community
projects such as Falcon Crest which is considered a moderate income project.
The Agency then had to reallocate the affordability with respect to the rental
properties to accommodate the same number of people into the very low and
low income categories. The Agency knew that at one point it would have to
subsidize the amount that was not being matched by rent from the 20%
Housing Set Aside. She referenced the "Prior Year Net Operating Income"
monthly totals stating that although Palm Village is the only property that was in
the positive, minus $67,000 was still considered to be a realistic number, given
that the Agency operates a 5 million budget for all the properties. She further
stated that last year's report showed a loss of approximately $400,000 also
considered to be better than expected.
F. HOUSING AUTHORITY PROPERTIES UPDATE
The update on the Housing Authority properties was reviewed by the
Commission.
Janet Moore stated that Spencer Knight was invited to the Housing
Commission meeting to provide an update on the transition between the
previous landscape company (Liberty Landscape) to the new landscape
company (Sierra Landscape) for landscape maintenance at the Housing
Authority properties. She noted that from management's perspective the 'get to
know you period' is taking longer than anticipated. The Landscape Department,
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Housing Commission
Minutes OCTOBER 7, 2009
who are responsible for contract requirements, anticipated the transition taking
longer considering there are 15 properties to maintain.
Spencer Knight stated that it is typical for a new contractor to take some time to
become familiar with the properties. The properties have had consistent
maintenance from the same contractor for the past several years which is
unusual. Staff has met with Sierra Landscape to discuss some of the concerns
with the properties. He noted that Sierra Landscape is doing well given the
number of properties and its sophistication. He further stated that Sierra has
worked with the City in a number of different capacities and expects them to
fulfill their contract.
Wade Tucker commented on the landscape at Las Serenas during the first two
weeks Sierra took over. He mentioned how he became concerned after
reviewing the staff report and noticed that Sierra's bid amount was significantly
low and called James Conway to clarify.
James Conway stated that staff checks background experience before
considering awarding a contract.
Richard Kelly, Councilmember Liaison, stated that Sierra Landscape has done
a lot of work for the City, noting that staff provides background information to
the Council for review.
Mr. Tucker stated that most of the time the contract is awarded to the lowest bid
of which Mr. Kelly responded that that was not always the case and may be
rejected due to performance concerns.
Mr. Conway provided an example of a bid rejection due to non performance
with regard to the Taos Palms renovation project.
Mr. Knight mentioned that Sheila McGrew the landscape inspector for the
properties is in charge of making sure that Sierra is performing to contract. He
reiterated that he fully expects Sierra to improve.
Jane Turner asked if there were seasonal considerations and if September was
a heavy work time to start a contract.
Mr. Knight responded that yes September is usually the month for over -
seeding as well as heavy growth due to summer. At this time, staff is expecting
to see progressive improvement the first 30 days, fine tuning the next 30 days
and then Sierra should be up and running with no excuses.
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Housing Commission
Minutes OCTOBER 7, 2009
Mrs. Moore stated that staff expected to award the contract in July, however
Sierra needed to get their paperwork together so the award took place in
August. Furthermore, Sierra had to get clearances from the other City
departments prior to issuing a Notice to Proceed which took place in
September. She noted that as a result of the timeframe delay, it may be a
consideration in the future to extend the existing contract for a few months to
get passed the heavy period or make the next contract shorter so the new
contractor is on board before the reseeding period.
Mr. Conway stated that Sierra has been placed on formal notice to perform.
Mr. Knight added that Sierra has a reputation and often use the City as a
reference as part of their contract which may affect their payment and
performance bond if a negative mark is on there by the City.
Mr. Tucker commented that he was surprised that Sierra will ride mowers and
shave the grass down on the hills, noting he was concerned that with time it will
not look good.
Mr. Knight responded that he would have the landscape inspector look into this.
Ms. Turner inquired on the fire unit at California Villas.
Mr. Conway stated that in November of 2008 a tenant had a fire incident that
caused total loss to one unit and minor damages to units on both sides. Given
the timeframe to get insurance and legal issues addressed, the repair work was
delayed and is now complete.
Natalie Russo inquired on the motion sensor lights at La Rocca Villas and
asked if the other communities had sensor lights installed as well.
James Conway stated that staff continues to look for energy upgrades that
include fluorescent lighting, walkway lighting, and accent lighting. At this time,
the common areas are being addressed to include motion sensor lights as well
as the parking structures.
Mr. Tucker commented that the outside lighting at Las Serenas stays on all the
time. He has noticed that the shells over time will become brittle and fall and
break. He asked if Southern Edison can provide staff with extra shells so they
don't have to replace the whole light unit.
Mr. Conway stated that the properties order 12 fixtures in bulk from Edison
Energy Program. He asked that this issue should be brought to the property
manager's attention. He stated that Edison's rebate program has funded most
of the lighting in the common areas.
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Housing Commission
Minutes OCTOBER 7, 2009
Mr. Conway provided a brief update with regard to the Taos Palms renovation
project. The contract has been awarded and currently waiting on executed
documents from the contractor. A preconstruction meeting has been scheduled
for next week to include building inspectors and fire department. He anticipates
issuing a Notice to Proceed sometime next week. He reiterated that the project
is a two phase project; phase I will take 60 days then allow for tenant transfer
period and then 60 days for phase II.
Mr. Tucker questioned the contract's dollar amount and asked if it was
approved, recalling a concern with the contractor.
Mr. Conway stated that there were two situations concerning the renovation
project. The first time staff went out to bid, the bids received were non-
responsive and therefore those bids were formally rejected. The second time
staff went out to bid, the lowest bid was non -responsive, did not meet the
qualifications necessary in order to complete the project. The second lowest
bidder which is Desert Ranger was awarded the contract.
Mr. Wade commented on the dollar amount of $512,000 to renovate 16 units.
Mr. Conway explained that the contract amount equates to $30,000 a unit to
include new phone cables, electrical and plumbing. The units were stripped
down to the studs and are structurally being upgraded to include new drywall,
paint and installation of hold-downs for seismic code requirements. He stated
that a standard renovation unit ranges from $6,000 to $8,000 however this
project is much greater in scale due to its much needed repairs. Staff estimated
a $500,000 budget for the renovation project.
Mrs. Moore stated that Taos Palms has been remodeled several times and
made visible once the walls were opened. With regard to new plumbing and
electrical, she clarified that only the pipes and wires will be new but will be
connected to the existing source. She reiterated that this project is much more
comprehensive than the standard upgrade of pulling cabinets and fixtures.
Mr. Conway added that the exterior components of the buildings will not be part
of the renovation project. Windows will be replaced to energy efficiency
windows and new doors will be installed.
Upon question, Mr. Conway stated that Taos Palms was purchased in 1998.
VI. NEW BUSINESS
VII. CONTINUED BUSINESS
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Housing Commission
Minutes OCTOBER 7, 2009
VIII. INFORMATIONAL ITEMS
A. AGENCY HOME IMPROVEMENT PROGRAM UPDATE
An update on the Home Improvement Program (HIP) was provided to the
Commission for review.
James Conway summarized the report; stating that 9 applications are in review,
6 in the construction phase, and 4 applications are complete. He stated that the
program continues to be busy and recently the City's Brightside published an
ad with regard to the program.
IX. NEXT MEETING DATE — November 10, 2009
Janet Moore reported that the next regularly scheduled meeting for the Housing
Commission is November 11; which is Veteran's Day and City Hall will be
closed. She reminded the Commission that at the beginning of the year that
the consensus was to further discuss the November meeting date contingent
upon the Council's November schedule. The Council has confirmed that they
will meet only once in November on the 12th. In the event that there are items
that need to go before the City Council, staff would like the Commission to
review them prior to the 12th of November. At this time, Mrs. Moore asked for
suggestions on a meeting date.
A motion was made by Commissioner Tucker and seconded by Commissioner
Turner to reschedule the Housing Commission to Tuesday, November 10, 2009
at 3:30 pm.
ADJOURNMENT
Natalie Russo, Housing Commission Vice -Chair, adjourned the Housing
Commission meeting at 4:11 p.m. to November 10, 2009. Regularly
scheduled meeting of November 11, 2009 was canceled due to the
Veteran's Day holiday.
o\f)
Pat
ty Leon, ecording Secretary
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