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HomeMy WebLinkAboutHousing Cms Minutes - 07/07/10CITY OF PALM DESERT ADJOURNED HOUSING COMMISSION MEETING MINUTES JULY 7, 2010 I. CALL TO ORDER Natalie Russo, Housing Commission Chair, convened the meeting at 3:30 p.m. II. ROLL CALL Present: Gene Colombini Donna Lewis Natalie Russo Wade Tucker Jane Turner Also Present: Justin McCarthy, ACM for Redevelopment Jessica Gonzales, Management Analyst James Conway, Project Coordinator Patty Leon, Recording Secretary Guest(s): Teresa Vakili, RPM Company III. ORAL COMMUNICATIONS Members Absent: Wade Tucker asked if Commissioners were allowed to comment on Agenda items at this time. Natalie Russo stated that any person including Commissioners were allowed to comment however, may be deferred until such time on the Agenda as the item is discussed. IV. CONSENT CALENDAR A. MINUTES of the Regular Housing Commission meeting of June 9, 2010. 1 Housing Commission Minutes July 7, 2010 Minutes of the June 9th, 2010 meeting were continued to September 8, 2010. V. REPORTS AND REMARKS A. COMMISSION REPORTS The HUD Income Limits for 2010 published by the Department of Housing and Community Development (HCD) were provided to the Housing Commission as informational. Jessica Gonzales commented that RPM is implementing the rental rates to be effective July 1, 2010. Wade Tucker asked if the income limits had been provided to the Commission last year. Mrs. Gonzales stated that the income limits were being provided in this form to the Commission as a request by a Commissioner. She noted that typically the income limits are published in April but were delayed. 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 May. Teresa Vakili summarized the report and stated that Sagecrest will be removed since the relocation process has been completed. Natalie Russo inquired on how the tenants were being notified of the changes to the rental rates. Ms. Vakili stated that residents are provided with a 90-day notice, prior to their lease expiration, with a new certification packet for completion. All residents were notified of the delay. Residents whose rent increased received an additional 30-day notice. Upon question of Sagecrest's occupied unit, Ms. Vakili stated that the last remaining tenant moved out June 4tn D. REPORT #1 - MONTHLY OCCUPANCY AND AVERAGE RENT STATEMENT 2 Housing Commission Minutes July 7, 2010 The Commission reviewed the Monthly Occupancy and Average Rent Statement for May. Discussion ensued with the turnovers at Las Serenas due to either deaths or tenants moving with family members. E. REPORT #2 — MONTHLY NET OPERATING INCOME STATEMENTS The Commission reviewed the Monthly Net Operating Income Statements for May. F HOUSING AUTHORITY PROPERTIES UPDATE The update on the Housing Authority properties was reviewed by the Commission. James Conway summarized the report. Natalie Russo referenced the update and asked on the repairs completed to the damaged stucco of the carport at Candlewood Apts. caused by a vehicle. Mr. Conway stated that the damage was minor. A car took out a small portion of the stucco wall by the carport. In-house maintenance staff repaired the damages. It is still unknown who caused the damages. Upon question of a new design for cabinets, Mr. Conway stated that staff is on a test trial with a new cabinet company. The cabinets have been installed at Las Serenas and Catalina Gardens. He noted minor issues with the company at the beginning but were addressed. Staff has not determined on whether to switch over to this new product. The company is based in San Diego and is a competitor to HD Supply; the current supplier to the properties. The company also provides demo services which is an added benefit. He noted that staff ensures cabinets are installed properly after each installation. Cabinet prices vary between all properties. Mrs. Russo asked about the short in the alarm panel at Palm Village. Mr. Conway stated it was brought to our attention by the monitoring company that there was a problem with the alarm panels. There are two alarm panels installed at Palm Village Apts., one is a fire alarm and the other one is a burglar alarm. Mr. Tucker mentioned that there were two trucks belonging to an air conditioning company at Las Serenas for days. 3 Housing Commission Minutes July 7, 2010 Mr. Conway stated that typically an air conditioning company will monitor the system after it has been installed and complete rebate applications for submission. He noted that he was not aware of any extended delays with respect to air conditioning repairs at Las Serenas. VI. NEW BUSINESS B. PALM DESERT HOUSING AUTHORITY LANDSCAPE MAINTENANCE SERVICES James Conway reviewed the staff report, stating that a formal bid process was conducted. Six companies responded and Pinnacle Landscape Company was recognized as the lowest responsible bidder. Pinnacle is also assigned to other Palm Desert contracts. The contract will be for a two year period. Upon question if Pinnacle bid the last time, Mr. Conway stated that they did not, stating that all three lowest bidders were new. Gene Colombini referenced the staff report and asked why a company from Santa Ana would provide a service outside their area. He commented that by contracting outside the area we are not keeping the money here. He also asked on the point system for locals and supporting the City as well as the County of Riverside. Justin McCarthy stated that the City is legally obliged to accept bids from outside the area. Mr. Conway stated that the bid process entitles everyone to bid as long as the company can demonstrate the experience and knowledge required. He noted that staff was not surprised to see companies outside the area bid which can bring competitive pricing. Outreach was done by publications and notices. He noted that Pinnacle has an office in Palm Desert and contract workers that are acclimated to this weather. They are also aware of the work requirements at the properties such as the decomposed granites and plant materials. Upon question, Mr. Conway stated that four of the six companies that submitted bids are from the Palm Desert area. There were several companies outside the area that picked up packets but did not submit bids. With respect to Sierra Landscape, Wade Tucker commented on their bid cost. 4 Housing Commission Minutes July 7, 2010 Mr. Conway stated that the landscape contract is a performance contract. The scope of work and specifications are very clear. In the event of nonperformance or need to terminate a contract, the Agency holds the performance bond and payment bond in place and in most cases companies do not want to lose their bonding capacity. Staff is working with Sierra to ensure the properties are in good standards so Pinnacle has a better understanding of what we expect. Mr. Conway also noted that Sierra was required to submit a weekly schedule to include crew size and duration of staff members at a property. The schedule allowed staff to ensure there were enough resources at a particular property. Mr. Colombini asked how long Pinnacle has had their office open in Palm Desert. Mr. Conway stated that he did not have that information with him but would provide that at the next meeting. Mr. Colombini commented that there is a lot of talk in this industry with regard to outside contractors/companies coming in and money going out the door and how cities and the County are not appreciating. He further commented that this may be a serious situation because there are a lot of people without work in our area. Mr. McCarthy stated that from a legal perspective we are obliged to take the lowest responsible bidder. If a City starts looking at local vendors/contractors then other cities will start doing the same and will find ways to pre-empt companies from doing business in their city creating a problem. He also provided an example of a fairly large project that this Commission oversaw and how staff was working with a local architect who provided a proposal to do the next phase of work that was substantially high. Staff did an RFP (Request for Proposals) and got a substantial response from contractors outside the area because it was a sizable project. Bids from local architects were competitive as well. He added that the best solution is to make sure our local vendors, contractors are aware of potential projects. He further noted that the City Council is sensitive to companies that have subdivisions within the city or valley and employ local workers. Mr. Tucker commented that when he first moved to Las Serenas there were no issues with the landscape and asked if Liberty was the lowest bidder at that time. Mr. Conway stated that Liberty was the only bidder in most cases. There were times when there was competition however; the other competitors 5 Housing Commission Minutes July 7, 2010 had a higher cost because they were busy. He noted that times are different; there is more competition wherein cities are benefitting from better pricing and services. Our specifications are stringent and therefore these companies have to perform; they are professionals. Mr. Tucker commented that staff should have a pretty good idea of what the cost should be and what to expect in a bid. Mr. McCarthy stated that three years ago we might have been able to say yes but the world has changed significantly in the last 36 months. He provided an example on Palm Village Apts., a six million project, and how there were no bidders. Staff had to rework the numbers and one contractor bid the job. Bids are now breaking below engineers' estimates. The parking lot project at Desert Willow of approximately one million is out to bid and bids came in at $500,000 to $600,000 range; it's the nature of the change in the economy right now. Mr. Tucker asked if bids were sought for the paving and slurry seal. He commented that the job recently done at Las Serenas was terrible. Mr. Conway stated that if contractors did what they were supposed to do the right way he would not have a job. He noted that he is constantly at the properties especially during projects. Mr. McCarthy stated that there have been three projects over the last 5 years that have had non judicial proceedings to resolve issues. Depending on the size and issue there are times we don't get into litigations. Mr. Tucker asked if bidders know the City takes the lowest bid as mandated by law. He commented on how Sierra first bid was low of approximately $222,000 and now their bid was $403,000. Mr. Conway stated that Sierra had some loses from the previous contract that they wanted to recover and that is part of the reason their bid was high. Mr. Tucker asked if this was the first time we do a two year contract. Mr. Conway replied yes. Mr. Colombini commented that knowing you have an all inclusive RFP and a good expectation for this work on the city level, he asked what happens with the slurry seal issue. Mr. Conway explained that the slurry seal was done in a parking lot as opposed to the streets where there are less oil spots. Oil and slurry do not bond well when the slurry product is on top of the oil spots there is less 6 Housing Commission Minutes July 7, 2010 adhesion. There is a process for bonding where the oil spots are burned and then a bonder is added before the overlay of the slurry product however there might be a portion that fails. The contractor was called back to correct those issues. Mr. Tucker commented that he felt it was too late for the contractor to do that process. They should have came in the first time and taken the spots out and then put fillers. Mr. Conway explained that Las Serenas is actually in really good shape, there are no pot holes to fill and therefore, the work called for only slurry seal and restriping. The issue was the oil stains and adhesion. Slurry seal is to supply the course surface with fine sand materials to avoid standing water. He noted that the other properties will require to remove and replace asphalt areas as well as demo patching before overlaying the product. Motion was made by Commissioner Turner and seconded by Commissioner Lewis to forward the recommendation to the Housing Authority to authorize the award of contract to Pinnacle Landscape Company, in the amount of $255,444 for annual landscape maintenance services for thirteen (13) Housing Authority Properties; and Authorize the Executive Director to execute any documents necessary to facilitate the contract award and implementation. 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 although the report reflects 10 in the application stage, 5 have moved to the next process. Staff is currently working on an emergency project with an AC issue to a manufactured home. The next report will reflect the new fiscal year and will not list the shaded properties. Jane Turner asked if it was standard to commit more than the actual cost. Mr. Conway stated that a work write up is prepared based on the items that the homeowner would like to address. There are times when the scope of work will change during the process and increase the cost. In some cases, homeowners will upgrade or decide not to complete a certain item. Therefore, the Agency 7 Housing Commission Minutes July 7, 2010 tries not to exceed the committed amount, given that the loan agreements are recorded against their property. In the event of any adjustments, they are typically made at the end of the project. At this time, Natalie Russo reported that Janet Moore received an award, honored by the Chamber of Commerce. Justin McCarthy stated that the Chamber of Commerce annually provides an award to a City employee that they feel have done a very commendable job known as the "Award of Excellence" . He noted that this Commission has seen a lot of the hard work that Janet puts into the housing programs by staying on top of all the for -sale and affordable housing rental products. He stated that Janet is a very busy lady and it's not just numbers, there's a great deal of human contact that goes into her duties in terms of dealing with people and challenges they may have. He further noted the award was well deserved and he was very proud that Janet was honored. Commission extended their Congratulations to Janet Moore. IX. NEXT MEETING DATE — September 8, 2010 — (regularly scheduled meeting of August 1, 2010 was canceled by action of the Housing Commission on June 9t" 2010) ADJOURNMENT Natalie Russo, Housing Commission Chair, adjourned the Housing Commis ion meeting at 4:15 p.m. to 3:30 p.m., September 8, 2010. Patty Leon, "Recording Secretary 8