Loading...
HomeMy WebLinkAboutHousing Cmsn - 04-11-2012V-- PALM DESERT HOUSING AUTHORITY INTEROFFICE MEMORANDUM TO: RACHELLE KLASSEN, CITY CLERK FROM: PATTY LEON, RECORDING SECRETAR DATE: MAY 14, 2012 SUBJECT: HOUSING COMMISSION MINUTES Attached is the following Housing Commission Meeting Minutes approved at the regular Housing Commission meeting held May 9, 2012 as follows: April 11, 2012 Please submit to the Housing Authority Board. Thank you. cc: John M. Wohlmuth, Executive Director -R.T.LCiffi BY HOUSG AUTH ON Ir, , 7,3e r VER!i IED BY:. Original on file with City Clerk's Office G:sda\Patty LeonHousing CommissionNiscellaneousnMemos \ Memos to City Clerk HC\HAC - Minutes.doc CITY OF PALM DESERT REGULAR HOUSING COMMISSION MEETING MINUTES APRIL 11, 2012 I. CALL TO ORDER Wade Tucker, Housing Commission Chair, convened the meeting at 3:30 p.m. II. ROLL CALL Present: Wade Tucker, Chair Gene Colombini, Vice Chair Jane Turner Natalie Russo Robert Nevares Others Present: Jean Benson, Councilmember Justin McCarthy, Assistant City Manager Janet Moore, Director of Housing Teresa Vakili, RPM Company Martin Alvarez, Redevelopment Manager Heather Buck, Project Coordinator Patty Leon, Recording Secretary III. ORAL COMMUNICATIONS None IV. APPROVAL OF MINUTES MINUTES of the Regular Housing Commission meeting of March 7, 2012: Commissioner Gene Colombini moved, by Minute Motion, to approve the minutes of the March 7, 2012, meeting. Motion was seconded by Commissioner Jane Turner and passed 4-0-1 with Commissioner Natalie Russo abstaining. 1 Housing Commission Minutes APRIL 11, 2012 V. NEW BUSINESS A. CARLOS ORTEGA VILLAS PROJECT Heather Buck introduced herself as the project coordinator from the former Redevelopment Agency. She explained that the staff report before them will be going before the Successor Agency to request approval of an additional service contract authorizing the architect to pothole 17 locations at the project site to confirm the exact location of the underground utilities for water, sewer, gas, and telephone. This could mitigate any potential delays or additional construction costs. Funds are available in the contingency fund. Upon question from Commissioner Jane Turner, Janet Moore replied that the funds are not yet available to complete the project. All funding sources are being sought. The legislature is considering a bill that has passed the Assembly that would allow monies on hand in the Housing Fund to remain on hand. Deadlines would be 2 years for dedication of the funds and expenditures by 4 years. Those funds would be enough to construct the Carlos Ortega Villas. The other option that may be available is that other legislation would allow bond proceeds to be used for their intended purposes. There is money in the bond fund to construct the Carlos Ortega Villas as well. There may be other options at some point in the future. Upon further question, Mrs. Moore responded that she is not confident on the legislature's actions, but it is the City Council's priority to build the project. Commissioner Turner agreed and stated that she believed it was not prudent to spend more money on a project if we are not convinced that it will go forward. Mrs. Moore responded by saying that staff has been instructed to move forward, that the project is a priority, and we will be looking at constructing it with whatever funding sources may be available. Justin McCarthy added that there are other ways to develop a project even if there aren't direct funds to do it. Moving forward and making it "build ready" is in our interest, and the current project funds that would be used for this expense would not be available for another project. Its' not like we keep this money if we don't spend it for this. Commissioner Natalie Russo questioned whether funds were allocated for this work in the original budget, to which Ms. Buck responded they were not however, the work can be done with contingency funds because this is an active contract. 2 Housing Commission Minutes APRIL 11, 2012 Commissioner Gene Colombini asked if this additional service would complete the design and at what stage is the design now. Ms. Buck related that the project design is done and is in the construction documents phase. Commissioner Jane Turner moved, by Minute Motion, to recommend to the Housing Authority to approve the additional services in an amount not to exceed $13,500 to contract no. R2941A with Interactive Design Corporation for professional architectural services for the Carlos Ortega Villas project. Motion was seconded by Commissioner Robert Nevares and passed 5-0. B. 2012-2013 BUDGET Janet Moore related that the 2012-2013 budget is in a different form than in the past, which is the format that will be in the budget book. The changes made were to reduce expenditures increasing the properties' income. With all the expenses and revenues the budget is still in a negative situation. Funds will not be spent unless they are available. Responding to Commissioner Jane Turner's question, Ms. Moore explained that some expenses will not be actualized during this year. Certain RPM employees did not work for a period of time and now are back to work, increasing expenses. Commissioner Natalie Russo questioned the increase in repairs and maintenance. Teresa Vakili responded this line item now includes replacement appliances, HVAC, boilers, etc., which had previously been in replacement expenses. Ms. Moore stated that part of the interpretation of the legislation is that money set aside for replacement expenses will not go to the taxing entities and will go to the Housing Authority. Regarding rental income, Ms. Moore conveyed that the budget amount reflects actual amounts. Further clarifying that now is the low point and rental income can only go up. Until it is known if replacement expenses can be spent, down units may not be online for some time. At this time, there is no provision for additional funding for affordable housing, and we are still in a "holding pattern." Commissioner Natalie Russo moved, by Minute Motion, to forward the recommendation to the Finance Director to include the 2012-2013 Palm Desert Housing Authority expected revenues and expenditures in the City of Palm Desert's Comprehensive Financial Plan for 2012-2013 to be 3 Housing Commission Minutes APRIL 11, 2012 presented to the Housing Authority Board for approval at a future meeting. Upon question why some of the line items have been increased over the 2011- 2012 budget; Ms. Moore explained each line item and why it has either gone up or down over the previous year. Commissioner Jane Turner commented that there is very little difference in the bottom line from the actual 2011-2012 to the 2012-2013 budgets. The motion died for lack of a second. Mrs. Moore mentioned that the City Council had a study session and reviewed all the documentation. She asked the Commissioners to let her know what their remaining questions are that need to be addressed. Commissioner Jane Turner expressed concern about the rental income and the payroll expenses. She commented that since some employees were out and it seems they weren't needed, why did we add them back in? Ms. Vakili explained that 2 maintenance people were injured and were out on worker's comp for quite some time. They were not paid through the budget, which resulted in a savings. The 2 employees are needed. Maintenance workers were borrowed from other properties to get work done. A capital projects manager was also lost and is not being replaced. Mrs. Moore made note of the fact RPM has made staff reductions which resulted in a reduced budget of $1.48M for next year versus $1.65M budgeted for this year. Councilmember Jean Benson asked if this includes City Housing salaries. Ms. Moore responded that it does not. The line item for PDHA Administrative Reimbursement addresses these expenses. Previously no expenses were reimbursed by the Housing Authority to the Agency. To the extent that there are not enough funds, the funds will have to come from another source. Commissioner Gene Colombini requested the chance to study the proposed budget and asked if the item could be postponed to the next meeting, or is there an urgency. Mrs. Moore noted that the budget will be included in the Director of Finance's Comprehensive Budget, but the Council doesn't take action until June. 4 Housing Commission Minutes APRIL 11, 2012 Commissioner Gene Colombini moved, by Minute Motion, to continue this item to the next meeting. Motion was seconded by Commissioner Robert Nevares and carried 3-2, with Commissioners Natalie Russo and Jane Turner voting no. Mrs. Moore requested that the Commissioners let her know any specific things that can be brought back for more discussion, otherwise the same packet will be in the next agenda. VI. CONTINUED BUSINESS None VII. REPORTS AND REMARKS A. COMMISSION REPORTS Janet Moore reiterated that legislation going through the State houses would allow the monies in the Housing Fund to be retained, with time restrictions on the expenditures. If it goes through the Senate it would still have to be signed by the Governor. Other legislation addresses the bond funds, which would be used for the Carlos Ortega Villas project. Housekeeping items will need to be addressed in the next few months, such as the Housing Commission by-laws. There was an Oversight Board meeting this week, and they approved contracts on the payment schedule that would reimburse the Housing Fund for certain expenditures. This still has to be reviewed by the State Department of Finance. The Housing Commission meeting schedule will also be considered in the upcoming months. Mrs. Moore announced that James Conway has been transferred to the Code Compliance department but will still assist on outstanding projects for a few months. Day-to-day work will now be coordinated through Teresa Vakili and the management company. Justin McCarthy added that this is one indication of the significant consolidation that is occurring to the City. We are working through a reduction of 15 staff people. The operating budget of the Redevelopment Agency was about $4M per year that supported Agency staff and City staff who were working on Agency -related projects and services. On the capital side we are experiencing the disappearance of current and prospective dollars approaching $200-300M. The City General Fund has had some recovery over the last few years and that 5 Housing Commission Minutes APRIL 11, 2012 has softened the blow on an operating basis. The Commission is getting a view of this as it relates to Housing. Mr. McCarthy reported that he will be retiring next month. Councilmember Jean Benson conveyed that the City has been very frugal over the years and is lucky that the Redevelopment Agency was able to complete so many projects during the good years. The Carlos Ortega Villas is the only project that is a priority; other projects are on a "wish list." Services will not be allowed to decline. There is a healthy reserve for when it really rains, and we are just getting showers now. B. SUMMARY OF CITY COUNCIL AND HOUSING AUTHORITY AGENDA ITEMS AND ACTIONS Janet Moore reported that Council approved the citywide palm tree pruning program, which is with a new contractor. C. MONTHLY OCCUPANCY STATUS REPORT The Commission reviewed the Monthly Occupancy Status Report through February. Teresa Vakili reported that there are no major changes. There is currently 99% occupancy, and 7 of the 13 properties are 100% occupied. She added that employees have monthly safety meetings and other meetings as required. There was some discussion regarding painting of the red curbs. Mrs. Moore stated that the Housing properties are following the City's policy and will no longer paint red curbs except in very specific but limited locations. D. REPORT #1 — MONTHLY OCCUPANCY AND AVERAGE RENT STATEMENT FOR FEBRUARY The Commission reviewed the Monthly Occupancy and Average Rent Statement for February. E. REPORT #2 — MONTHLY NET OPERATING INCOME STATEMENTS FOR FEBRUARY The Commission reviewed the Monthly Net Operating Income Statements for February. F. HOUSING AUTHORITY PROPERTIES UPDATE 6 Housing Commission Minutes APRIL 11, 2012 The Commission reviewed the update for February. F. AGENCY HOME IMPROVEMENT PROGRAM UPDATE Janet Moore reported that there are only 2 active projects, which James Conway will assist in closing out. We are still waiting on whether or not the CDBG funding will come through for emergency situations only. The award will be made around June. Any money received back from previous HIP loans or grants can be used for emergency situations. All the applications that are on hold were reviewed to determine if they are emergency situations and there were none. IX. NEXT MEETING DATE — May 9, 2012 X. ADJOURNMENT With Commission concurrence the meeting was adjourned at 4:12 p.m. ?gto omo Patty Leon,IRecording Secretary 7