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HomeMy WebLinkAboutHousing Cmsn - 0/10/2010Thank you. cc: John M. Wohlmuth, Executive Director PALM DESERT REDEVELOPMENT AGENCY INTEROFFICE MEMORANDUM TO: RACHELLE KLASSEN, CITY CLERK FROM: PATTY LEON, RECORDING SECRETAR DATE: APRIL 12, 2010 SUBJECT: HOUSING COMMISSION MINUTES Attached is the following Housing Commission Meeting Minutes approved at the adjourned Housing Commission meeting held April 7, 2010: March 10, 2010 Please submit to the Housing Authority Board. 1(.di Ltd BY HOUSG AUTH VERIFIED BY: 1 Original on file with City Clerk's Of'ir'c7 CK) CITY OF PALM DESERT REGULAR HOUSING COMMISSION MEETING MINUTES MARCH 10, 2010 I. CALL TO ORDER Natalie Russo, Housing Commission Chair, convened the meeting at 3:30 p.m. II. ROLL CALL Present: Members Absent: Gene Colombini Verna Smith Donna Lewis Natalie Russo Wade Tucker Jane Turner Also Present: Richard S. Kelly, Councilmember Liaison Janet Moore, Director of Housing James Conway, Project Coordinator Jessica Gonzales, Management Analyst Patty Leon, Recording Secretary Guest(s): Teresa Vakili, RPM Company Cathy Walker, Senior Management Analyst III. ORAL COMMUNICATIONS IV. CONSENT CALENDAR A. MINUTES of the Regular Housing Commission meeting of February 10, 2010. With a Motion made by Commissioner Tucker and seconded by Commissioner Lewis the minutes of February 10, 2010 were unanimously approved with Commissioner Turner abstaining. 1 Housing Commission Minutes MARCH 10, 2010 V. REPORTS AND REMARKS A. COMMISSION REPORTS Information on the Ethics Training was distributed to the Commission. Janet Moore stated that the training is mandatory every 2 years with a minimum of 2 hours of training is required. The training is available both online and a live session hosted by the City of Cathedral City on April 13th, reservations must be made with City Clerk, Rachelle Klassen. A certificate is available upon completion of an online course and must be provided to the City Clerk as proof of completion. B. SUMMARY OF CITY COUNCIL, REDEVELOPMENT AGENCY, AND HOUSING AUTHORITY AGENDA ITEMS AND ACTIONS Jessica Gonzales summarized the memo provided to the Commission. C. MONTHLY OCCUPANCY STATUS REPORT RPM WEEKLY ACTIVITY STATISTICS The Commission reviewed the Monthly Occupancy Status Report and Weekly Activity Statistics for January. D. REPORT #1 - MONTHLY OCCUPANCY AND AVERAGE RENT STATEMENT The Commission reviewed the Monthly Occupancy and Average Rent Statement for January. Teresa Vakili commented that she is looking forward to seeing everyone on the upcoming tour. Jane Turner asked on the rental rate changes that will affect the market rental rates. Janet Moore stated that a market rent survey has been completed. Staff is working on adjusting the actual rents that were established based on the survey to include utility allowances. Those adjusted rental rates will be provided to RPM for implementation in July of 2010. She noted that the rents did go down and are considered reasonable; a two bedroom two bath at One Quail Place is in the low $800 range. Ms. Turner asked if the Commission would be reviewing those adjustments before going into affect. 2 Housing Commission Minutes MARCH 10, 2010 Mrs. Moore stated that those adjustments do not require an action from the Authority Board. However, a copy will be provided to the Housing Commission as informational once those adjustments have been made. E. REPORT #2 — MONTHLY NET OPERATING INCOME STATEMENTS The Commission reviewed the Monthly Net Operating Income Statements for January. Wade Tucker asked if there were any changes to the report. Teresa Vakili stated that the properties are having a difficult time leasing over the 55% income level due to the decrease in incomes as well as other competing conventional properties lowering their rates. Mr. Tucker commented that there has been a significant number of turnovers at Las Serenas and wondered if tenants are looking at other cities. He commented that he has noticed some tenants move out for 5 months and then move back in. Mrs. Vakili stated that tenants are either moving back with family or healthcare facilities and in most cases those tenants come back to Las Serenas because they like it there. Mr. Tucker asked if tenants were able to move out in the middle of their lease without a penalty; Mrs. Vakili replied typically no but it would depend on the circumstance. Jane Turner commented that she had noticed an article about Housing in the Desert Sun Newspaper. She requested a list of the housing units for the Commission; Mrs. Moore responded that a report will be provided to the Commission for review at the next meeting. F HOUSING AUTHORITY PROPERTIES UPDATE The update on the Housing Authority properties was reviewed by the Commission. James Conway summarized the report. Wade Tucker inquired about power washing and asked if the parking areas were included. James Conway stated that there are special nozzles placed on pressure washers that can be used on asphalt. 3 Housing Commission Minutes MARCH 10, 2010 Mr. Tucker inquired if oil leaking from cars can be powered washed as well. Mr. Conway stated that oil saturates into the asphalt and power washing alone will not remove it. The process involves scraping the oil that has saturated into the asphalt to free up all the loose materials and then go through a burning process to open up pores to receive the new product. A company was contracted to complete this process at both Las Serenas and One Quail Place. Currently staff is addressing striping errors, slurry issues, crack repairs with the contractor and anticipates completion of those issues within a week. Mr. Tucker commented on the performance of the contracted workers during the process. Mr. Conway stated that payment is due upon satisfaction of completion. Gene Colombini inquired on how often this process is being applied at the properties. Mr. Conway stated that a typical slurring process is addressed every five years depending on the water runoffs, standing water, etc. Las Serenas had a lot of water issues and standing water that deteriorated the asphalt and therefore was done after three years. An irrigation specialist is assessing the water issues. Upon question, Mr. Conway stated that the total cost for this process was approximately $6,200 that included striping, slurring, crack filling etc. Natalie Russo inquired on the removal of the old satellite dishes at Sagecrest and asked if regular cable services are offered to the tenants. Mr. Conway stated that the tenants have cable fees but are allowed to install satellite dishes with authorization and restrictions on installation methods as well as location. Jessica Gonzales reminded the Commission that Sagecrest is in the process of a Relocation Plan; the property is almost vacant with only two tenants remaining. VI. NEW BUSINESS A. CARLOS ORTEGA VILLAS Rec: By Minute Motion: 4 Housing Commission Minutes MARCH 10, 2010 Motion was made by Commissioner Turner and seconded by Commissioner Lewis to forward the recommendation to the Housing Authority to authorize to cease negotiations with KTGY Group, Inc., for architectural services for the Carlos Ortega Villas Cathy Walker, Senior Management Analyst reviewed the staff report, stating that KTGY was chosen to enter into negotiations for architectural services for the Carlos Ortega Villas. However, KTGY formally declined the contract due to issues with the professional services agreement which was made part of the request for proposal (RFP) package. KTGY requested an amendment to the agreement but was denied. We are requesting that those negotiations cease and consider the next grouping of qualified applicants that were part of the original interview process. Upon question, Mrs. Walker stated that there is an indemnification provision in the agreement that protects the City and the Agency in the event of litigation of which KTGY felt it was too onerous of a provision. The contract language was provided by the City's Attorney and is considered standard in the professional services agreements. She noted that other architectural firms in current City projects have no problem with the language. Gene Colombini asked if a list of the other bidders may be provided to the Commission for review. Mrs. Moore stated that the RFP process is not based on the lowest proposal but is actually a negotiated contract. Staff will provide a list of the firms that submitted a response to the RFP. She noted that until a contract is awarded anything else that we have is still considered part of the negotiations. Upon question if the Agency and/or City have used KTGY services before, Mrs. Walker stated that KTGY was the architectural firm that provided the final design for Falcon Crest; however they were not contracted with the City, they were contracted with the developer. Mr. Colombini commented that insurance companies have made a lot of changes in the industry relative to professional services in terms of liability making it more complex. B. 2010-2011 BUDGET Rec: By Minute Motion: 5 Housing Commission Minutes MARCH 10, 2010 Motion was made by Commissioner Turner and seconded by Commissioner Colombini to forward the recommendation to the Finance Director to include the 2010-2011 Palm Desert Authority Operating, Capital and Replacement Budgets into the City of Palm Desert's Comprehensive Financial Plan for 2000-2011 to be presented to the Housing Authority Board for approval at a future meeting. Mrs. Moore stated that she met with Teresa Vakili to discuss a plan in terms of items that are necessary to keep the properties in good working order as well as items that are in the process such as a three or five year maintenance schedule in addition to eminent items. Adjustments were made to the rent revenue due to the reduction in rents since most tenants' incomes went down as well as the rental rates. She noted that the rental rates only affect the highest rents since those rents are calculated on a percentage basis based on the County's median income. Consideration was given to items that are absolutely necessary and/or need to be done as well as those items that can be delayed. Given the reduction in revenue, staff made every effort to reduce the expenses as well. The properties revenue projections are down by approximately $400,000, due to reductions and a decrease to the expenses of approximately $260,000. Some of those items were recognized by savings achieved through trash and water, given that water cost has gone up. Staff is looking at ways to reduce water waste and is looking into replacing washing machines to front loaders which are water efficient. She noted that the properties are expected to still make a profit about $400,000 before capital or replacement expenses. Deferred maintenance is expected to be about $445,000. Staff has been working on renovating units that are in disrepair such as the cabinets and doors. In addition, staff is also looking at ways to be more efficient and configure the kitchen cabinets. Mrs. Moore stated that the tour packet will include the number of units that have been renovated for that particular complex. If the complex is new it will state new, if the entire units were renovated such as California Villas then it will show 141 units. Unit renovations have to be budgeted for. During the tour, a unit with a configuration change will be available for viewing at Las Serenas. Jane Turner referenced the Gardening Expenses and asked on the 5% increase. Mrs. Moore stated that the current landscape contract will expire in September. In the event the contractor decides to extend his contract, he is eligible for an adjustment based on the current contract and therefore 6 Housing Commission Minutes MARCH 10, 2010 an amount was added to make that adjustment. A percentage amount has not been determined and is unknown on whether it will be 5%. If the contractor agrees not to extend the landscape contract then staff will go out to bid and may increase by more than 5%. Ms. Turner asked if the 20% Routine Extras for Gardening Expenses is on top of the existing contract. Mrs. Moore replied that the 20% is above the base contract to replace sprinklers, plants, etc. She noted that those routine extras have been averaging 20% for the last several years. California Villas did not show the 20% Routine Extras on the Budget Assumption; staff will add the change to show the 20% routine extras. Ms. Turner commented on the usage of water and based on an audit by Coachella Valley Water District (CVWD) found that most landscape is being overwatered. She felt that consideration should be given to the usage of water in the landscape. Mrs. Moore stated that the City's Landscape Inspector, Sheila McGrew, monitors the irrigation controllers and their usage of water at the Housing Authority properties. The landscape company sets the controllers but Ms. McGrew ensures that they are within the water standards for certain types of plants. Although, Ms. McGrew already monitors the usage, the Landscape Department is welcome to coordinate an inspection from CVWD for further input. Teresa Vakili added that the time schedules on some of the controllers have been reduced on several properties and have monitored those plant materials affected by the reduction of water. James Conway stated that as part of the landscape contract there is a full time dedicated irrigation specialist to ensure times are appropriate to include soil probing inspections. A weekly irrigation report by property is provided to the Landscape Inspector to include the number of sprinklers that were replaced and/or if minutes were reduced from the controllers. Mrs. Moore stated that the Landscape Department, primarily Sheila McGrew and Randy Chavez, Senior Landscape Inspector, are always looking for ways to assist us and recently researched a new sprinkler head that is extremely accurate and down the line of a turf ending. The new sprinklers are being tested in certain places to make sure water is on the grass and not on the concrete. The sprinklers are costly but very efficient in terms of savings. There will be an analysis to determine what 7 Housing Commission Minutes MARCH 10, 2010 the cost will be to install the new sprinklers versus the overall savings in the long run. Mr. Conway added that the tour packet will also include information on water usage per property for both domestic water and landscaping. The ratings will either show excellent for domestic water and efficient for irrigation which is the best category (tier 2) for landscape. Upon question of turf changes, Mr. Conway stated that there are properties that have turf in usable areas that tenants can utilize. Taos Palms had some areas with small amounts of turf and through the construction efforts were damaged, rather than bringing the turf back those areas were converted to decomposed granite. 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. James Conway summarized the report; stating that 9 projects have been completed; 10 in the application stage, 3 in the construction process; and 14 were either denied or withdrawn. Mr. Conway stated that staff continues their efforts to implement energy savings and water conservation through the HIP program. Staff works with the Energy Department to make sure we achieve all rebates and other eligible opportunities available from different sources. Jane Turner questioned the projects that are under budget. Mr. Conway stated that staff is being critical on approving excessive work that does not pertain to health and safety issues. B. TAOS PALMS RENOVATION UPDATE James Conway reported that Taos Palms will be one of the stops during the tour to view a renovated unit. He noted that the units are much more usable as well as energy efficient and water conservation in mind. There are minor punch 8 Housing Commission Minutes MARCH 10, 2010 list items to review with the contractor on Phase II prior to issuing a Notice of Completion. Several of the units from Phase I have been leased. Janet Moore added that the renovations at Taos Palms has made the property more sought after. IX. NEXT MEETING DATE — April 7, 2010 Mr. Richard Kelly, Councilmember Liaison, asked if there would be a problem changing the meeting time of 3:30 pm to 3:00 pm as a permanent time. Janet Moore stated she believes that a resolution establishes the meeting date and was uncertain if the time was established as well. If a Council action is required, a report will be prepared and brought to the Commission for review. She stated that the time change for a specific meeting is at the discretion of the Commission by taking a vote. If the Commission decides to change the time permanently it may be formalized at the next meeting, depending on the resolution established. Upon question if the time change would affect the public, Mrs. Moore noted the Housing Commission meetings are noticed 72 hours prior to the meetings to allow the public to attend. Motion was made by Commissioner Tucker and seconded by Commissioner Lewis to change the next meeting of April 7th, 2010 to 3:00 pm. Staff to review resolution for consideration of a permanent change and bring back report at the next meeting. Natalie Russo reminded the Commission of the Housing Tour March 18, 2010. The Housing Commission, Planning Commission, and the Council Members will be attending the tour as well as Lt. Andy Shouse and Deputy Ellis, Crime Prevention Officer. ADJOURNMENT Natalie Russo, Housing Commission Chair, adjourned the Housing Commission meeting at 4:16 p.m. to 3:00 p.m., April 7, 2010. Patty Leon,Recording Secretary 9