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HomeMy WebLinkAboutHousing Cmsn - 09/09/09PALM DESERT REDEVELOPMENT AGENCY INTEROFFICE MEMORANDUM TO: RACHELLE KLASSEN, CITY CLERK FROM: PATTY LEON, RECORDING SECRETAR DATE: OCTOBER 8, 2009 SUBJECT: HOUSING COMMISSION MINUTES Attached is the following Housing Commission Meeting Minutes approved at the Housing Commission meeting held October 7, 2009: ➢ September 9, 2009 Please submit to the Housing Authority Board. Thank you. cc: John M. Wohlmuth, Executive Director keetM o qi LL BY HOUSG AUTH rerguSol /0--5e4 l ON. I i✓9 VERIFIED BY: JD rej J Original on file with City Clerk's Office CITY OF PALM DESERT HOUSING COMMISSION MINUTES SEPTEMBER 9, 2009 I. CALL TO ORDER Verna Smith, Housing Commission Chair, convened the meeting at 3:30 p.m. II. ROLL CALL Present: Donna Lewis Natalie Russo Verna Smith 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 Members Absent: Jane Turner III. ORAL COMMUNICATIONS IV. CONSENT CALENDAR A. MINUTES of the Regular Housing Commission meeting of July 8, 2009. With a Motion made by Commissioner Tucker and seconded by Commissioner Lewis the minutes of July 8, 2009 were unanimously approved. 1 Housing Commission Minutes SEPTEMBER 9, 2009 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. Janet Moore referenced the agenda item for consideration of a request to accept the name "Carlos Ortega Villas" for the project known as Country Village. She stated that additional names were also discussed by the committee such as "Casa Carlos Ortega Village or Villas" as well as "Casa Carlos Ortega". A final decision will be made at the City Council meeting. Wade Tucker asked why the complex is being named after Carlos Ortega. Mr. Richard Kelly, Councilmember Liaison, stated that Carlos Ortega's main priority since day one has been housing, noting that Mr. Ortega was also on the Riverside County Housing Authority Board. Verna Smith commented that the Housing Commission was in favor of the dedication to name Country Village after Carlos Ortega; no action was taken. C. MONTHLY OCCUPANCY STATUS REPORT RPM WEEKLY ACTIVITY STATISTICS The Commission reviewed the Monthly Occupancy Status Report and Weekly Activity Statistics for June and July. Teresa Vakili stated that the properties remained 98% occupied during the summer. Wade Tucker asked if there were any problems at the properties being that June and July reports fluctuate. Ms. Vakili stated that due to the fiscal year end June's report included any allocated projects budgeted for that year; July 1st reflects the new budget for the fiscal year 2009/2010. 2 Housing Commission Minutes SEPTEMBER 9, 2009 D. REPORT #1 - MONTHLY OCCUPANCY AND AVERAGE RENT STATEMENT The Commission reviewed the Monthly Occupancy and Average Rent Statement for June and July. Wade Tucker inquired on the high number of turnovers at Las Serenas. Teresa Vakili stated that there are 5 available units at this time. She stated that there is no particular reason for the turnovers, and in most cases tenants have expressed they want to move in with families. E. REPORT #2 — MONTHLY NET OPERATING INCOME STATEMENTS The Commission reviewed the Monthly Net Operating Income Statements for June and July. Janet Moore provided a brief update on the Replacement Reserve Study authorized for 13 properties. She stated that the consultant, Association Reserves Inc., completed several studies at the properties which were concerning. She noted that the consultant requested a significantly high dollar amount as initial deposit for Laguna Palms which was recently renovated to include new service for electrical and plumbing. She stated that staff was concerned with whether the consultant took the actual condition of the properties into consideration or did an industry standards estimation. She explained how some of the properties are fairly new or recently renovated such as California Villas, Palm Village Apartments, La Rocca Villas, and Laguna Palms of which all received surprisingly high numbers. Staff has asked the consultant to hold proceeding with the study until further discussion. She commented that Association Reserves, Inc., is the same consultant that did the reserve study back in 1999, and at that time, the Director of Finance was concerned with their estimations. Riverside County Housing and Urban Development (HUD) also conducts analysis on properties and their analysis is about $250 per unit per year compared to Association Reserves at $700 per unit. James Conway stated that industry standards may not be the same as City standards which may skew the final numbers. He commented that staff is very familiar with the conditions of the properties, noting that there has been several renovation projects at the properties. 3 Housing Commission Minutes SEPTEMBER 9, 2009 Mrs. Moore also commented that staff provided a detailed report to Association Reserves that included warranties and how old things were at the properties, which was more information than they usually get when they do a reserve study. She provided an example of how a kitchen faucet may have a lifespan of three years with industry standards while the City's expected lifespan might be much longer. Verna Smith asked if staff had discussed the City's standards compared to other properties with the consultants. Mr. Conway stated that staff walked each property with the consultants and explained in detail the condition aspects. Staff will meet with the consultants to further clarify their findings. Natalie Russo referenced June and July reports and questioned the high number in payroll for June. Mrs. Moore stated that biweekly payrolls are paid differently; payrolls were accrued for the month of June but were paid in July. F. HOUSING AUTHORITY PROPERTIES UPDATE The update on the Housing Authority properties was reviewed by the Commission. James Conway summarized the update. Natalie Russo inquired on the standing water and flow issue at One Quail Place. Mr. Conway stated that tree roots overtime will lift parking areas and curbs which will result in need of replacement to alleviate the standing water and flow issue. He noted that there are several interior renovations at the properties due to vacancies. Wade Tucker asked on the number of pools at the complexes. Mr. Conway stated that most properties have pools with the exception of Palm Village, La Rocca Villas, and Sagecrest Senior. Mr. Tucker asked if the pools were in compliance with the new rules. 4 Housing Commission Minutes SEPTEMBER 9, 2009 Mr. Conway stated that the pools are in compliance with the Virginia Graeme Baker Act, stating that the Act requires public pools to install equipment that prevents pool drain entrapment with an additional benefit to include energy efficient pumps. VI. NEW BUSINESS A. TAOS PALMS RENOVATION PROJECT Rec: By Minute Motion: Action: Motion was made by Commissioner Russo and seconded by Commissioner Lewis to forward the recommendation to the Housing Authority to authorize the award of contract to the lowest responsive bidder for the interior renovations at Taos Palms. James Conway reviewed the staff report and apologized for its delay. He noted that the lowest bidder's qualification to meet the criteria resulted in further review. The recommendation is to award the bid to the second lowest responsive bidder based in Rancho Mirage. Janet Moore clarified the different account numbers listed on the staff report to fund the project. Originally the project was going to be a unit renovation however, due to vacancies along an entire building it was recommended to the Agency Board that staff include all (16) units and eradicate a pest control issue. The existing tenants have agreed to transfer to the renovated units. Given that the second bid was higher than budgeted, monies from RPM's budget, Agency's capital budget, and cost savings from California Villas project were consolidated. Mr. Conway highlighted some of the real issues associated with the renovation to include kitchen configurations as well as work to include as many current building code changes as possible to maintain long term sustainability. Verna Smith asked on the timeline of the project. Mr. Conway stated that the contract calls for 120 days; 60 days for the first phase (2 buildings 8 units), allow for transfers, and then 60 days for the second phase (2 buildings 8 units. Renovation to the buildings by phase will include (8) units and will be isolated and surrounded by temporary safety fencings to allow access to the amenities such as the pool, parking and laundry room; available at all times to existing residents. 5 Housing Commission Minutes SEPTEMBER 9, 2009 B. ONE QUAIL PLACE SUANA ROOMS Rec: By Minute Motion: Action: Motion was made by Commissioner Tucker and seconded by Commissioner Russo to forward the recommendation to the Housing Authority Board the request to eliminate the saunas from One Quail Place. Teresa Vakili summarized the memo, stating that the sauna rooms are not being used on a regular basis by adults but are mainly an attraction to teenagers who leave the saunas and lights on, given that there is no supervision. RPM would like to convert these sauna rooms into a large storage facility to store tenant files. Janet Moore stated that this request was brought to the Housing Commission for consideration since it is eliminating an amenity at the property. However, other amenities have been removed at this particular property such as a workout room and it's currently being utilized for the Childcare Center. She also noted that although the sauna rooms are free to tenants it is costly to maintain. Upon question of the cost to convert the room to a storage facility, James Conway stated it would cost approximately $6,000 to $8,000. Wade Tucker inquired if the tenants should be contacted prior to closing the sauna rooms. Ms. Vakili stated that temporary closed signs were posted on the doors to see what the reaction of the tenants would be; only two complaints were received out of 384 units. She noted that it would not affect the property since staff has to chase teenagers out of there and felt it is more of a nuisance than amenity. VII. CONTINUED BUSINESS VIII. INFORMATIONAL ITEMS A. AGENCY HOME IMPROVEMENT PROGRAM UPDATE An update on the Home Improvement Program (HIP) was provided to the Commission for review. 6 Housing Commission Minutes SEPTEMBER 9, 2009 James Conway summarized the report; stating that 8 applications are in review, 5 new assignments; and 4 are nearing completion. Upon question, he noted that the home located at Kelsey Circle had extensive mold from a long term water leak from a condensation line of the AC unit. Through the assistance of the HIP program, the property owner installed an energy efficiency AC and heating unit, completed a bathroom upgrade and is looking to convert to a drought tolerant landscape. Wade Tucker inquired if the homeowner had filed a claim with the insurance company. Janet Moore stated that Desert Rose has a Homeowners Association (HOA) who carries a master insurance policy. Initially, the homeowner contacted the insurance company to determine what could actually be corrected. The insurance company determined the damages were caused from a defective AC line which is not covered by the existing HOA master policy. The small amount of work the policy would cover was far less than the $5,000 deductible. Because Desert Rose typically has a common wall and to avoid future problems to the adjacent unit, the homeowner was encouraged to correct the situation and participate in the HIP program. Mr. Conway stated that the homeowner was approved for a deferred loan, in the event they decide to sell the home within the next several years the loan is paid back to the program. IX. NEXT MEETING DATE — October 7, 2009 — (North Wing Conference Room) ADJOURNMENT Verna Smith, Housing Commission Chair, adjourned the Housing Commission meeting at 4:10 p.m. to October 7, 2009. (Regularly scheduled meeting of October 14, 2009 was rescheduled by action of the Housing Commission) . mki Patty Leon, ecording Secretary 7