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HomeMy WebLinkAboutHousing Cmsn - 10-08-2014PALM DESERT HOUSING AUTHORITY INTEROFFICE MEMORANDUM TO: RACHELLE KLASSEN, CITY CLERK FROM: PATTY LEON, RECORDING SECRETARY DATE: NOVEMBER 13, 2014 SUBJECT: HOUSING COMMISSION MINUTES Attached is the following Housing Commission Meeting Minutes approved at the regular Housing Commission meeting held November 12th, 2014 as follows: (x) Meeting Minutes for October 8th, 2014 Please submit to the Housing Authority Board. Thank you. Mad BY HOUSG AUTH VERIFIED BY: ieggrliY/ Original on file with City Clerk's Office Lq-Da: Bliss:hey/u00e/, N° /Uo�r st�rn� .�ort�,�Ha�iJ G \HOUSING'Patty Leon\Housing Commission \Miscellaneous\Memos\Memos to City Clerk HC\FIAC - Minutes doc Housing Commission Minutes OCTOBER 8, 2014 V. NEW BUSINESS A. Ratify Change Order No 1 to Contract No. HA29410B with Optimus Construction, Inc. — Carlos Ortega Villas Janet Moore summarized the staff report, stating that the total amount of $10,194.53 will be expended from the 10% contingency set aside for this contract. Commissioners Mike Lewis and Gregory Ballard felt the cost to remove a septic tank seemed high. Mrs. Moore explained that the septic tank was concrete and required that it be removed in order to achieve the required soil compaction. Motion was made by Commissioner Mike Lewis to forward a recommendation to the Palm Desert Housing Authority to Ratify Change Order No. 1 to Contract No. HA29410B in the amount of $10,194.53 with Optimus Construction, Inc. for construction of the Carlos Ortega Villas (Project No. 825-11). Motion was seconded by Commissioner Greg Ballard and carried by 6-0-1 vote (AYES: Ballard, Lewis, Nevares, Tucker, Whitehurst, and Russo; NOES: none; ABSENT: Turner). B. Approve Change Order No. 2 to Contract No. HA29410B with Optimus Construction, Inc. — Carlos Ortega Villas Janet Moore summarized the staff report and provided a brief explanation of the water damages to the site caused by the recent rain storm. The storm was classified as a 700 to 1000 year storm. The Carlos Ortega Villas' plans are designed for appropriate water run-off but not in the event of an extraordinary storm. Mrs. Moore also noted that there might be another change order to the contract with respect to additional dirt, to level the site, which may have been washed away. Commissioner Gregory Ballard asked if these damages may be submitted as an insurance claim. Mrs. Moore replied that the deductible is higher than the cost for the damages themselves. Motion was made by Commissioner Mike Lewis to forward a recommendation to the Palm Desert Housing Authority to Approve Change Order No. 2 to Contract No. HA29410B with Optimus Construction, Inc. in the amount of $4,713.82 for construction of the 2 Housing Commission Minutes OCTOBER 8, 2014 Carlos Ortega Villas (Project No. 825-11). Motion was seconded by Commissioner Joy Whitehurst and carried by 6-0-1 vote (AYES: Ballard, Lewis, Nevares, Tucker, Whitehurst, and Russo; NOES: none; ABSENT: Turner) C. Payment to Coachella Valley Water District — Carlos Ortega Villas Janet Moore stated that staff does not have an invoice from CVWD at this time, however it's expected to be well in excessive of the $100,000 the Executive Director was granted to approve. Commissioner Natalie Russo asked what was budgeted in the project cost; Mrs. Moore replied approximately one million dollars. Motion was made by Commissioner Mike Lewis to forward a recommendation to the Palm Desert Housing Authority to approve a payment to Coachella Valley Water District and Sewer Development fees related to the Carlos Ortega Villas (Project No. 825-11). Motion was seconded by Commissioner Gregory Ballard and carried by 6-0- 1 vote (AYES: Ballard, Lewis, Nevares, Tucker, Whitehurst, and Russo; NOES: none; ABSENT: Turner). VI. CONTINUED BUSINESS VII. REPORTS AND REMARKS A. COMMISSION REPORTS Janet Moore stated that if the Commission was interested in driving by the Carlos Ortega Villas site there is activity going on. The contractor has requested for a one day extension due to the floods. Commissioner Joy Whitehurst asked if there is an in house project manager on site. Mrs. Moore replied that the project manager is Heather Buck who visits the site frequently. Currently she is working on submittals where the contractor feels something has not been called for in the plans such as hardware, fixtures, and appliances. An example mentioned was the contractor identified that there were no deadbolts designed in the plans; staff felt deadbolts are needed in addition to door locks and were approved to be installed. Teresa Vakili commented that there are a lot of inquiries for this property. 3 Housing Commission Minutes OCTOBER 8, 2014 The site will be a hard hat area soon and a street view was encouraged. Upon question of Casey's restaurant, Mrs. Moore stated that there has been interest in the restaurant site; however a decision has not been made whether we will demolish the building and then sell or sell it as is. It was noted that the property will be sold and not rented. Commissioner Wade Tucker mentioned he stopped by the Carlos Ortega Villas site and had a conversation with the workers who were very friendly and offered to answer questions. B. SUMMARY OF CITY COUNCIL, SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY, AND HOUSING AUTHORITY AGENDA ITEMS A memo summarizing the approved action items from the City Council meeting of September 25tr' were provided to the Commission for review. Janet Moore reported that the contract is being finalized and will be provided to HD Supply for signature. She reiterated that the renovation work will be done to 4 apartments at the rental properties and 3 for sale properties. C. MONTHLY OCCUPANCY STATUS REPORT The Commission reviewed the Monthly Occupancy Status Report for August. Commissioner Natalie Russo inquired on the nine vacancies at One Quail Place. Teresa Vakili stated that besides One Quail Place being the largest property, August is usually a busy month; most families are preparing to settle down before school starts. In general, there were a high number of turnovers in August; however those vacancies have been leased. 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. 4 Housing Commission Minutes OCTOBER 8, 2014 Commissioner Wade Tucker commented that the new ground staff member at Las Serenas is doing a great job. Commissioner Mike Lewis questioned how long the City can sustain losses at the rental properties and if a report showing the total year end may be requested. Janet Moore stated that the report currently shows the Prior Year Net operating income for the same reporting month. She noted that the report may be adjusted to show the prior year's totals which are normally reported the last month of the fiscal year in June. Mrs Moore mentioned that although the report shows a negative amount, the properties do provide a profit and in most cases, those incomes from properties that do not have debt, so the monies are dispersed towards other programs such as the for -sale program. She also stated that before capital improvements are done, which are funded by another source, there is a positive cash flow ranging from $500,000 to one million dollars. Since the elimination of redevelopment agency, staff had to determine what the absolute necessary repairs and improvements for the properties would be, at the same time continue to maintain the properties; given the fact that there is no constant funding sources for affordable housing. It was noted that HD Supply renovations are necessary repairs. Commissioner Mike Lewis asked if there was a law that says we have to have affordable housing. Mrs. Moore stated that there are laws for the City that require that land be zoned for affordable housing. When the redevelopment agency was in effect and operating, 20% of the funding that went into the redevelopment agency was required to be used for affordable housing keeping in mind the land use policies and zoning ordinances to ensure we were in compliance with what the State required. The State provides what is known as the Regional Housing Needs Assessment (RHNA) based on analysis conducted by them. One of the main factors of the analysis is transportation and where it's going in the next 30 years. Based on this, there will be housing needs and those needs will be allocated in different regions from RHNA. Since the redevelopment agency's elimination, the only requirement of the City is to allocate zoning and land use that will allow for the construction of those affordable units. Mrs. Moore further noted that the City Council opted to take over its own housing after the elimination of redevelopment. The properties were once overseen by the County of Riverside however the County was not as proprietary of its conditions. Therefore, the City acquired the properties and eliminated the agreement with the County. 5 Housing Commission Minutes OCTOBER 8, 2014 Commissioner Lewis thanked Mrs. Moore for the detailed explanation. At this time, Mrs. Moore reported that Councilmember Jean Benson attended a meeting with respect to the artists for the Carlos Ortega Villas and had narrowed it down to three artists from seven. Councilmember Liaison Jean Benson stated that all three murals were very good with different artistic styles. She briefly described the different arts displayed at the meeting, noting that the artist chosen best described Carlos Ortega's legacy. It was noted that the artist chosen is from the State of Washington. Commissioner Lewis asked if the costs to transport the mural to the Carlos Ortega Villas site were included in the monies allocated for the mural; Councilmember Benson replied yes. Janet Moore mentioned that those renderings will be presented to this Commission at the next meeting. F. HOUSING AUTHORITY PROPERTIES UPDATE An update on the Housing Authority Properties was provided to the Commission for review. Teresa Vakili summarized the report. G. AUTHORITY HOME IMPROVEMENT PROGRAM UPDATE An update on the Home Improvement Program (HIP) was provided to the Commission for review. Janet Moore summarized the report, stating that there is a new request for emergency assistance. She also noted that there has been a significant amount of walk-ins recently as shown on the bottom of the report. The report shows activity for one year. At this time, Mrs. Moore recognized Cquncilmember Jean Benson for her 32 years of service with the City of Palm Desert and how she was honored at a recent luncheon event. Commissioners praised Mrs. Benson with a round of applause. Mrs. Benson mentioned she received appreciation from some of the residents she has helped with affordable housing. 6 Housing Commission Minutes OCTOBER 8, 2014 Mrs. Moore commented that Mrs. Benson has been a great advocate, as well as supportive, of the affordable housing program and will be sad to see her leave. Commissioner Joy Whitehurst commented that she believed there is not anybody in the Coachella Valley that dedicates so much of their personal time for their city as Mrs. Benson. Mrs. Benson thanked the Commission for their kind words. IX. NEXT MEETING DATE — NOVEMBER 12, 2014 X. ADJOURNMENT With Commission concurrence the meeting was adjourned at 4:21 p.m. to November 12, 2014 at 3:30 p.m. Patty Leon, R cording Secretary 7