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HomeMy WebLinkAboutPrelim - HA - 08-28-2014 DRAFT PRELIMINARY MINUTES PALM DESERT HOUSING AUTHORITY MEETING THURSDAY, AUGUST 28, 2014 CIVIC CENTER COUNCIL CHAMBER 73510 FRED WARING DRIVE, PALM DESERT, CA 92260 I. CALL TO ORDER - 3:00 P.M. Chairman Tanner convened the meeting at 3:01 p.m. II. ROLL CALL Present: Member Jean M. Benson Member Jan C. Harnik Member Robert A. Spiegel Vice Chairman Susan Marie Weber Chairman Van G. Tanner Also Present: John M. Wohlmuth, Executive Director David J. Erwin, City Attorney Rudy P. Acosta, Assistant City Manager Rachelle D. Klassen, Secretary Russell Grance, Director of Building & Safety Lauri Aylaian, Director of Community Development Martin Alvarez, Director of Economic Development Paul S. Gibson, Director of Finance/City Treasurer Janet M. Moore, Director of Housing Mark Greenwood, Director of Public Works Stephen Y. Aryan, Risk Manager Casey Hartman, Battalion Chief, Palm Desert Fire/Riverside Co. Fire/Cal Fire Bill Sullivan, Asst. Chief, Palm Desert Police/Riverside Co. Sheriffs Dept. Grace L. Mendoza, Deputy City Clerk III. ADJOURN TO CLOSED SESSION Request for Closed Session: None PRELIMINARY MINUTES DRAFT PALM DESERT HOUSING AUTHORITY MEETING AUGUST 28, 2014 With Authority Board concurrence, Chairman Tanner adjourned the meeting to Closed Session of the City Council and Successor Agency to the Palm Desert Redevelopment Agency at 3:10 p.m. He reconvened the meeting at 4:00 p.m. IV. RECONVENE REGULAR MEETING - 4:00 P.M. A. REPORT ON ACTION FROM CLOSED SESSION. None V. CONSENT CALENDAR A. MINUTES of the Housing Authority Meeting of July 10, 2014. Rec: Approve as presented. B. CLAIMS AND DEMANDS AGAINST THE AUTHORITY TREASURY - Warrant Nos. 6HA, 11 HA, 15HA, 19HA, 28HA, 32HA, 37HA, 9-Housing, 27-Housing, 36-Housing, 2HAF, 16HAF, 20HAF, 23HAF, 29HAF, 33HAF, 38HAF, and 41HAF. Rec: Approve as presented. C. HOUSING COMMISSION MINUTES for the Meeting of June 11, 2014. Rec: Receive and file. D. REQUEST FOR RATIFICATION of the Executive Director's Approval of Amendment No. 1 to Contract for the Design of the Landscape and Demolition Plans for the Backfill of Pond No. 8 at One Quail Place(Contract No. HA33070A). Rec: By Minute Motion, ratify the Executive Director's approval of Amendment No. 1 in an amount not to exceed $1,200 to the subject contract with Ray Lopez and Associates, Vista Santa Rosa, California, related to the design of landscape and demolition plans for the backfill of Pond No. 8 at One Quail Place—funds are available in the Housing Authority Replacement Reserve Fund. Upon a motion by Benson, second by Harnik, and 4-0-1 vote (AYES: Benson, Harnik, Weber, and Tanner; NOES: None;ABSTAINING: Spiegel), the Consent Calendar was approved as presented. VI. CONSENT ITEMS HELD OVER None 2 PRELIMINARY MINUTES DRAFT PALM DESERT HOUSING AUTHORITY MEETING AUGUST 28, 2014 VII. RESOLUTIONS A. RESOLUTION NO. HA - 66 - A RESOLUTION OF THE PALM DESERT HOUSING AUTHORITY, AMENDING THE ADMINISTRATIVE PLAN TO INCORPORATE EXHIBIT "G" - SMOKE-FREE POLICY FOR THE PALM DESERT HOUSING AUTHORITY, PERTAINING TO THE MANAGEMENT AND OPERATION OF THE AFFORDABLE HOUSING RENTAL UNITS. Ms. Moore stated that in keeping with the City's Ordinance, in order to designate units in the Authority as "Smoke Free" there needs to be an implementation policy to do so. There are a fair number of requests from tenants requesting a smoke-free unit. Staff is trying to conduct an implementation over the next five years to designate units as they become vacant. Staff will try to designate specific buildings as nonsmoking where appropriate. Staff sent out an informal survey to the tenants over a year ago asking for their input, but not everyone responded. However, a percentage of input was received, and 60% of the folks that did respond asked for a smoke-free unit; 20% indicated they didn't care; and 12% was opposed. Chairman Tanner asked if the policy included pipe cigars and any type of tobacco. Ms. Moore answered yes Member Spiegel asked if there will be a percentage of units where tenants will be allowed to smoke. Ms. Moore explained a certain number of units within a complex will be designated as nonsmoking. She said there are designated smoking units in the larger complexes, some of the smaller complexes will become smoke free, and any new complex such as the Carlos Ortega Villas will be 100% smoke free from its inception. Member Spiegel moved to,waive further reading and adopt Resolution No. HA-66. Motion was seconded by Harnik and carried by a 5-0 vote (AYES: Benson, Harnik, Spiegel, Weber, and Tanner; NOES: None). 3 PRELIMINARY MINUTES DRAFT PALM DESERT HOUSING AUTHORITY MEETING AUGUST 28, 2014 VIII. NEW BUSINESS A. REQUEST FOR APPROVAL OF AN EXTENSION OF THE AGREEMENT FOR LEGAL SERVICES BY AND AMONG THE SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY, PALM DESERT HOUSING AUTHORITY, AND CITY OF PALM DESERT, AND THE FIRM OF RICHARDS, WATSON & GERSHON (CONTRACT NO. SA28881) (JOINT CONSIDERATION WITH THE PALM DESERT CITY COUNCIL AND THE SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY). Mr. Acosta stated the City/Agency has had a long-standing relationship with Richards, Watson & Gershon (RW&G) for services with the former Redevelopment Agency and now with the Successor Agency. Their contract is about to expire at the end of September 2014. The City Manager thought it would be prudent to bring the Agreement before the Council/Agency at this time. The proposed Agreement is for three-years with the option of two 1-year extensions at the authorization of the City Manager. He said RW&G offered to perform the same services and continue on with the dissolution process of the former Redevelopment Agency, and now as the Successor Agency, retaining the same billing rates as in the past five years. He noted this item was in joint consideration with the Housing Authority. Councilman/Director/Member Spiegel stated that with the dissolution of Redevelopment, he wondered if Best, Best and Krieger could pick this contract up. Mr. Acosta said he couldn't speak for City Attorney Erwin, but his suspicion was that the expertise of Best, Best and Krieger (BB&K) has not been in Redevelopment, as with current issues with and involving the dissolution of Redevelopment, Department of Finance(DOF),and Western Center for Law & Poverty. Therefore, staff believes it's in the best interest of the City to continue with the institutional capacity of RW&G. Councilman/Director/Member Spiegel asked the same question of Mr. Erwin. Mr. Erwin answered yes, but there are a number of ongoing issues that Richards, Watson & Gershon is dealing with, and if there were to be a transition, it ought to be over a period of time as opposed to a complete cut off. He said it was up to the Council, but certainly, RW&G is still in the middle of a lot of things; however, Best, Best and Krieger did have the capability of handing the contract. Mr. Wohlmuth said the way that AB1 X26 is prepared, the law that dissolves redevelopment agencies, the City has approximately three years left where it has an Oversight Board, and post three years from now, the County takes 4 PRELIMINARY MINUTES DRAFT PALM DESERT HOUSING AUTHORITY MEETING AUGUST 28, 2014 over the Oversight Board for the entire County boundaries. He said there are two important issues involved as to the difference between BB&K and RW&G. One is RW&G has been helping with the dissolution of the Redevelopment Agency providing excellent legal advice, and the City is currently in a legal battle with regards to the stipulation on the Housing Funds that they are handling. To answer Councilman Spiegel's question, he would see RW&G doing an excellent job of handling the dissolution of Redevelopment over the next three years, and post that,transition into a one City contract as redevelopment went away. However, redevelopment is slowly going away in the State of California, but it hasn't happened, because it doesn't happen overnight. Staff will continue to dispose land and handle the Recognized Obligation Payment Schedule (ROPS) on a six-month and 1-year basis. Further responding, he said Richards, Watson Gershon's contract also has a 30-day notice opt out. Councilman/Director/Member Spiegel moved to, by Minute Motion: 1) Approve extension of Contract No.SA28881 (formerly known as Contract No. R28880)-Agreement for Legal Services to the City of Palm Desert, Successor Agency to the Palm Desert Redevelopment Agency, and Palm Desert Housing Authority with Richards, Watson & Gershon, substantially as to form; 2) authorize the City Manager/Executive Director and City of Palm Desert to finalize the Agreement Extension with Richards,Watson&Gershon, substantially as to form; 3) authorize the Mayor/Chair/Chairman to execute the finalized Agreement. Motion was seconded by Benson. Councilmember/Director/Member Benson stated the Council owed it to RW&G for getting the clearance from the State for Palm Desert's Redevelopment, because there are a lot of Coachella Valley cities that haven't received their clearance yet, and they are unable to move forward. She said it was RW&G's foresight to condition all properties and financing through the State, obtaining a clean bill to work on and getting the approval fast. Councilmember/Director/Member Harnik confirmed the Agreement includes a termination with and without cause. She said RW&G has done a great job in avoiding problems and the dissolution of Redevelopment was an issue that came up. She said the process has been difficult, but RW&G has done an excellent job of guiding the City and Council through it, crediting them for where Palm Desert stood today. Mayor/Chair/Chairman Tanner stated both the law firm and staff are to be complemented for getting Palm Desert approved, allowing the City to move forward with selling the properties. Mayor/Chair/ChairmanTanner called for the vote, and the motion carried by a 5-0 vote (AYES: Benson, Harnik, Spiegel, Weber, and Tanner; NOES: None). 5 PRELIMINARY MINUTES DRAFT PALM DESERT HOUSING AUTHORITY MEETING AUGUST 28, 2014 B. REQUEST FOR APPROVAL OF DOWN PAYMENT ASSISTANCE LOANS FROM ANY AVAILABLE FUNDING SOURCE RESTRICTED FOR THIS PURPOSE IN AN AMOUNT NECESSARY TO SECURE AN AFFORDABLE HOUSING COST ASSOCIATED WITH A DIRECT SALE IN DESERT ROSE, 75326 KELSEY COURT (JOINT CONSIDERATION WITH THE PALM DESERT CITY COUNCIL). Ms. Moore stated staff was able to facilitate a direct sale within the community, and staff is requesting authorization to provide down payment assistance to a qualified buyer. Councilman/Member Spiegel moved to, by Minute Motion: 1)Approve a silent down payment assistance loan associated with a direct sale in Desert Rose, not to exceed 40% of the sales price of the home, to ensure an affordable housing cost pursuant to California Health and Safety Code Section 50052.5 for a qualified low- or moderate-income household from any available funding source restricted for such purpose (Low and Moderate Income Housing Asset Fund, BEGIN Fund,and Housing Mitigation);2)authorize the use of Desert Rose Sales Program and documents, including the restrictive covenant and loan documents for the applicable funding source, and authorize the Mayor to execute; 3)authorize the Director of Finance to draw monies from the relative funds to facilitate the transaction; 4)authorize the Authority Chairman and/or the Authority's Executive Director, or his designee, to finalize and execute any ancillary documents necessary to effectuate the actions taken herewith — monies are available in the appropriate account in the Low and Moderate Income Housing Asset Fund, BEGIN Fund, and Housing Mitigation Fund. Motion was seconded by Harnik and carried by a 5-0 vote(AYES: Benson, Harnik, Spiegel, Weber, and Tanner; NOES: None). IX. CONTINUED BUSINESS A. MINUTES OF THE HOUSING AUTHORITY MEETING OF JUNE 26, 2014 (Continued from the meeting of July 10, 2014). Upon a motion by Spiegel, second by Harnik, and 5-0 vote of the Authority Board (AYES: Benson, Hamik, Spiegel, Weber, and Tanner; NOES: None), the Minutes of the Meeting of June 26, 2014, was approved as presented. X. OLD BUSINESS None 6 PRELIMINARY MINUTES DRAFT PALM DESERT HOUSING AUTHORITY MEETING AUGUST 28, 2014 XI. PUBLIC HEARINGS A. REQUEST FOR APPROVAL OF PROPOSED SALE OF THE PROPERTIES LOCATED AT 42190 GOLDEN EAGLE LANE (APN 624-431-011), 74572 KING FISHER CIRCLE (APN 624-440-012), 42197 VERDIN LANE (APN 624-431-020), AND 74642 KING FISHER CIRCLE (APN 624-440-017), PALM DESERT, PURSUANT TO HEALTH AND SAFETY CODE SECTION 33433(c) (JOINT CONSIDERATION WITH THE PALM DESERT CITY COUNCIL). Ms. Moore stated that whenever the Housing Authority is to sell any property that is within its inventory, it has to conduct a public hearing in order to do so. She said one of the homes is under contract, but it's pending this hearing. She noted there is now interest in Palm Desert's communities, and staff is looking forward to getting them sold. Mayor/Chairman Tanner declared the public hearing open and invited public testimony FAVORING or OPPOSING this matter. With no public testimony offered, he declared the public hearing closed. Councilman/Member Spiegel moved to: 1) Waive further reading and adopt Resolution No. HA-65, approving the sale of the properties, pursuant to the attached draft Purchase and Sale Agreements, for up to $200,000 each for 42190 Golden Eagle Lane and 74572 King Fisher Circle, and up to $225,000 each for 42197 Verdin Lane and 74642 King Fisher Circle, depending on the terms of the negotiated sale; 2) By Minute Motion: a) approve silent homebuyer assistance loans for each home in amounts that do not exceed 40% of the sales price for each homebuyer to ensure an affordable housing cost for a qualified low- or moderate-income household from any available funding source restricted for such purpose (BEGIN, Housing Mitigation, Agency/Housing Authority Program Income); b) authorize payment of the transaction costs from the sale proceeds for the purpose of repairs required for closing, fees customary to real estate transactions in Riverside County, including escrow, title FHA fees, inspections, vermin eradication, commissions, and disclosures; c)authorize the use of the Falcon Crest Sales Program and documents, including the restrictive covenant and loan documents for the applicable funding source, in their substantial form; d) authorize the Mayor, Authority's Chairman, and/orAuthority's Executive Director,or his designee,to finalize and execute the Purchase and Sale Agreements, and any ancillary documents necessary to effectuate the sales and actions taken herewith. Motion was seconded by Hamik and carried by a 5-0 vote(AYES: Benson, Harnik, Spiegel, Weber, and Tanner; NOES: None). XII . REPORTS, REMARKS,AND AUTHORITY BOARD ITEMS REQUIRING ACTION A. EXECUTIVE DIRECTOR None 7 PRELIMINARY MINUTES DRAFT PALM DESERT HOUSING AUTHORITY MEETING AUGUST 28, 2014 B. AUTHORITY COUNSEL None C. CHAIRMAN AND MEMBERS OF THE AUTHORITY None XIII. ORAL COMMUNICATIONS - C None XIV. ADJOURNMENT On a motion by Spiegel, second by Weber, and unanimous vote of the Authority Board, Chairman Tanner adjourned the meeting at 6:19 p.m. VAN G. TANNER, CHAIRMAN ATTEST: RACHELLE D. KLASSEN, SECRETARY PALM DESERT HOUSING AUTHORITY 8