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HomeMy WebLinkAboutMinutes - Housing Commission 03/09/2016PALM DESERT HOUSING AUTHORITY INTEROFFICE MEMORANDUM TO: RACHELLE KLASSEN, CITY CLERK FROM: PATTY LEON, RECORDING SECRETARY Q DATE: April 15, 2016 SUBJECT: HOUSING COMMISSION MINUTES Attached is the following Housing Commission Meeting Minutes approved at the regular Housing Commission meeting held April 13th, 2016 as follows: (x) Meeting Minutes for March 9th, 2016 Please submit to the Housing Authority Board. Thank you. Receitied R(ed(4-y HOUSG AUTH ON i-I a-e'((o VERIFIED BY: k/rl wl Original on file with City Clerk's Off iOF C t&s : se;T O) G \HOUSING\Patty Leon\Housing Commission\Miscellaneous\Memos\Memos to City Clerk HC\HAC - Minutes.doc 1 CITY OF PALM DESERT HOUSING COMMISSION MEETING MINUTES MARCH 9, 2016 I. CALL TO ORDER Jane Turner, Housing Commission Chair, convened the meeting at 3:30 p.m. II. ROLL CALL Present: Absent: Jane Turner - Chair Gregory Ballard Mike Lewis (arrived at 3:55 pm) Robert Nevares Wade Tucker Joy Whitehurst Others Present: Sabby Jonathan, City Council Member Liaison Janet Moore, Director of Housing Jessica Gonzales, Management Analyst Teresa Vakili, RPM Company Patty Leon, Recording Secretary Veronica Tapia, Management Analyst 11 Jason Busanovitch, Garland Company Heather Horning III. ORAL COMMUNICATIONS IV. APPROVAL OF MINUTES MINUTES of the Regular Housing Commission meeting of February 10, 2016: Motion was made by Commissioner Wade Tucker to approve the minutes of the Housing Commission meeting of February 10, 2016 with the correct spelling of fronds on page 4 of the minutes. Motion was seconded by Commissioner Gregory Ballard and carried by 5-0 vote (AYES: Ballard, Nevares, Tucker, Whitehurst, and Turner; NOES: none; ABSENT: Horning and Lewis). 1 Housing Commission Minutes MARCH 9, 2016 V. NEW BUSINESS A. Award of Contract to Garland/DBS, Inc. An amended revision of the staff report was distributed to the Commission. Jessica Gonzales stated that a change was made to the manufacturer warranty to 15 years instead of 10. She noted that based on a roof assessment from Garland at One Quail Place determined the roofs are in fair condition and did not require a full replacement. Pictures were displayed of One Quail Place roofs. Jason Busanovitch with Garland described the white knight urethane product that will be used to restore the roofs which will provide for an additional 15 year life. Commissioner Greg Ballard asked if the product was energy efficient. Mr. Busanovitch replied that the product is Title 24 compliant with building energy efficiency requirements and may be entitled to a rebate from public utilities. Mrs. Gonzales mentioned the she had inquired with both Southern California Gas and Edison Companies with regard to energy efficiency rebates concerning this project and found that both companies only provide rebates to residential properties and not multifamily. Mr. Busanovitch stated that the product remains cool during hot weather conditions allowing for a savings in electricity; a benefit to the residents. Janet Moore referenced the various options listed on the revised staff report and stated that option 2 is beneficial at this point in time as opposed to a complete replacement based on the roofs fair condition. She also stated that the materials will be provided by Garland and although they have set prices, Garland procured bids from three southern California area contractors for the labor to secure an even lower price than what the government contract allows. Commissioner Ballard questioned if the drains with issues will be repaired as part of the bid. Mr. Busanovitch replied that as part of the specifications, the drains will be water tested to ensure that the downspouts are clear of debris and water flows easily. In the event of a potential issue, the Authority will be notified for additional work. 2 Housing Commission Minutes MARCH 9, 2016 Councilmember Liaison Sabby Jonathan referenced the pictures and asked about leaks from the overhangs and joint of the tile roofs. Teresa Vakili stated that there has not been an issue with leaks from the tile roofs. Mr. Busanovitch stated that he will be at One Quail Place 3 to 4 days a week during the restoration to ensure the product is being installed properly. Motion was made by Commissioner Joy Whitehurst to forward a recommendation to the Palm Desert Housing Authority to authorize the Award of Contract No. HA 34740C to Garland/DBS, Inc. in the total amount of $812,472 plus $81,247.00 for contingency for restoration of thirteen built up roofs and related services at One Quail Place Apartments. Motion was seconded by Commissioner Gregory Ballard and carried by 5-0 vote (AYES: Ballard, Nevares, Tucker, Whitehurst, and Turner; NOES: none; ABSENT: Horning and Lewis). B. Lowe's Home Centers Jessica Gonzales summarized the staff report stating that the increase request is due to the replacement of Ptac heating and cooling units, water heaters and smoke detectors in a higher number than anticipated. As previously mentioned at the last meeting, Teresa Vakili noted that additional smoke detectors were installed in the bedrooms based on the new law that passed this year. Councilmember Liaison Sabby Jonathon inquired if a requirement was in place for carbon monoxide detectors. Ms. Vakili replied that there is a requirement to have carbon monoxide detectors in rental units. Councilmember Joy Whitehurst asked about an increase to Home Depot's contract. Ms. Gonzales replied that there will not be an increase to Home Depot's existing contract for this year. Motion was made by Commissioner Wade Tucker to forward a recommendation to the Palm Desert Housing Authority to authorize an increase of $10,000 in the allowed amount for the use of Lowe's Home Centers, Inc, for the purpose of procuring, delivering and whenever appropriate, haul away and recycle appliances for the Palm Desert 3 Housing Commission Minutes MARCH 9, 2016 Housing Authority owned residential rental properties pursuant to section 3.32.110 of the Palm Desert Municipal Code, for FY2015/2016, making the annual total amount for the year not to exceed $60,000.00 Motion was seconded by Commissioner Joy Whitehurst and carried by 5-0 vote (AYES: Ballard, Nevares, Tucker, Whitehurst, and Turner; NOES: none; ABSENT: Horning and Lewis). C. WASH Multi Family Laundry Systems LLC Jessica Gonzales summarized the staff report stating that the contract with WASH will include the newly acquired property known as Santa Rosa. Pictures of the property were displayed. Ms. Gonzales mentioned that the front gate/fence was recently removed which improved the complex appearance and accessibility. As previously mentioned at the January Housing Commission meeting, Janet Moore reiterated that the Authority took over Santa Rosa Apartments when its lease expired on December 31st, 2015 with a local nonprofit organization. The complex consists of 20 two -bedroom units. Commissioner Jane Turner asked if a property manager was onsite. Teresa Vakili replied no since the property only has 20 units. However, the leasing office located at Laguna Palms oversees this complex. She noted the leasing agents have been doing a great job leasing the units and are currently 60% occupied. Councilmember Liaison Sabby Jonathan stated that the Authority was leasing this property to a nonprofit organization and continually worked with them in terms of maintaining full occupancy and providing a needed service to our community. However, after further review of the housing needs, the consensus was made to convert the property back into the Authority's affordable housing program and provide housing opportunities to more people. There are approximately 1,200 people on the interest list for a two - bedroom unit. Teresa Vakili stated that the current laundry equipment at Santa Rosa is owned by a vendor contracted by the previous lessee and is outdated; WASH is proposing to install all new machines. Commissioner Jane Turner asked if the multiple contracts with WASH may be combined into one at some point in time. 4 Housing Commission Minutes MARCH 9, 2016 Discussion ensued with the possibility of reviewing the existing contracts cycles in order to combine into one. Councilmember Jonathon suggested further review with legal for a possible master lease agreement with WASH. Motion was made by Commissioner Mike Lewis to forward a recommendation to the Palm Desert Housing Authority to authorize RPM Company to enter into a five year lease agreement with Wash Multi Family Laundry Systems LLC order to provide laundry services to Santa Rosa Apartments Property. Motion was seconded by Commissioner Robert Nevares and carried by 6-0 vote (AYES: Ballard, Lewis, Nevares, Tucker, Whitehurst, and Turner; NOES: none; ABSENT: Horning). D. Housing Authority Proposed 2016-2017 Budget Veronica Tapia provided a brief summary of the Totals for All Properties Budget Comparison page that shows a decrease in net profit due to the addition of Carlos Ortega Villas and Santa Rosa Apartments. She referenced the Transfer Out to Housing Admin account of approximately $1 million to cover programs such as the down payment homebuyer assistance, acquisition and rehab as well as administration costs. Janet Moore stated that in the event there are any excess funds available from the Transfer Out to Housing Admin account, after meeting the needs of the programs, funds will be placed in the replacement reserve fund being that there are no mechanisms to replace that reserve. Councilmember Liaison Sabby Jonathan inquired on the additional staff positions. Teresa Vakili stated that when the Authority first acquired the properties from the County there was a total of six property managers for seven apartment complexes. Today with the addition of Carlos Ortega Villas and Santa Rosa Apartments there are a total of 15 properties, therefore two new staff positions have been added to manage the increase in the number of units. Commissioner Mike Lewis asked on the increase to repairs and maintenance budget for fiscal year 16/17 and if there is a need to renovate units. Ms. Vakili stated that in the last five years 22 units have been renovated out of approximately 1000 units. Units that require renovations were placed on hold due to redevelopment agencies not able to enter into contracts for repairs and renovations. 5 Housing Commission Minutes MARCH 9, 2016 Commissioner Jane Turner asked about line item Turnover Reimbursable. Ms. Vakili explained that Turnover Reimbursements consists of charges collected for damages out of security deposits. However, after three years the condition of units are considered wear and tear and security deposits are refundable in its entirety. Commission Joy Whitehurst asked about legal fees. Ms. Vakili stated that legal fees are for evictions, court fees, letters, etc. Councilmember Jonathan asked about the increase to utility services. Ms. Vakili stated that the solar system at Carlos Ortega Villas was recently connected with Southern California Edison Company and therefore it is unknown what the actual costs will be. She noted that the billing statements have been significantly high at this time. Janet Moore stated that water rates have significantly increased. Within the last 8 months the properties, excluding Carlos Ortega Villas and Santa Rosa, paid $325,000 in water bills. The few penalties received were due to water usage in the laundry rooms. Staff has looked at several projects for ways to save water such as the recent turf conversion at Las Serenas and not over seeding of the lawns. Commissioner Robert Nevares mentioned that there is excessive use of water at Catalina Gardens where drips are watering nothing. Teresa Vakili stated she will walk the property with Liberty Landscape to ensure all drips are capped. Councilmember Jonathan asked for clarification for the administration costs reimbursed by the Housing Authority. Ms. Tapia stated that previously administration costs were funded by the former agency's housing 20% set aside fund. However, that fund is no longer available; therefore only those necessary administration costs are then transferred to the City from positive net income. The remaining funds will be placed in the reserve fund. Commission Joy Whitehurst asked if every property has a swimming pool. Ms. Vakili stated that the only properties that do not have a pool are Palm Village, Santa Rosa, La Rocca Villas, Sagecrest Senior, and The Pueblos. 6 Housing Commission Minutes MARCH 9, 2016 Motion was made by Commissioner Mike Lewis to forward a recommendation to the Finance Director to include the 2016-2017 Palm Desert Housing Authority Operating, Capital, and Replacement Budgets in the City of Palm Desert's Comprehensive Finance Plan for 2016-2017 to be presented to the Housing Authority Board for approval at a future meeting. Motion was seconded by Commissioner Wade Tucker and carried by 6-0 vote (AYES: Ballard, Lewis, Nevares, Tucker, Whitehurst, and Turner; NOES: none; ABSENT: Horning). VI. CONTINUED BUSINESS VII. REPORTS AND REMARKS A. COMMISSION REPORTS 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 meetings in February were provided to the Commission for review. C. MONTHLY OCCUPANCY STATUS REPORT The Commission reviewed the Monthly Occupancy Status Report for January. Teresa Vakili reported 23% occupancy at Carlos Ortega Villas. There were 166 applicants from the interest list that were contacted however, 40% were either denied and/or found other housing. Currently there are 9 occupied units and 9 preleased. It was further explained that there is a process when contacting applicants from the interest list. Applicants are given 10 days to respond and are asked to submit the necessary documents for qualification purposes. In most cases, applicants do no respond back and/or take time to submit the documents. The leasing office keeps track of all notifications/contact made to applicants on the interest list. D. REPORT #1 — MONTHLY OCCUPANCY AND AVERAGE RENT STATEMENT The Commission reviewed the Monthly Occupancy and Average Rent Statement for January. 7 Housing Commission Minutes MARCH 9, 2016 Teresa Vakili reported that Santa Rosa occupancy is moving fairly quickly; there are 12 occupants, 5 of those tenants are below the 50% area median income and 7 are above 50%. E. REPORT #2 — MONTHLY NET OPERATING INCOME STATEMENTS The Commission reviewed the Monthly Net Operating Income Statements for January. Councilmember Liaison Sabby Jonathan referenced the FYTD Net Operating Income for the senior properties and questioned if we would meet the budgeted income. Janet Moore stated that the report shows totals for the month of January only. There were replacement and capital improvements that occurred in this fiscal year there were expended from the replacement fund which will be reimbursed at the end of the year. In addition, the senior properties don't generate as much income given that they are income restricted. Prevailing wage has significantly increased costs as well. She further noted that the properties are finally catching up on projects needed due to the elimination of redevelopment. Councilmember Jonathan asked what the actual FYTD capital and deferred maintenance amounts are. Mrs. Moore said she will provide that at the next meeting. F. HOUSING AUTHORITY PROPERTIES UPDATE An update on the Housing Authority Properties was provided to the Commission for review. G. AUTHORITY HOME IMPROVEMENT PROGRAM UPDATE An update on the Home Improvement Program (HIP) was provided to the Commission for review. With the Commission's concurrence, the report will be brought to the Commission when there is new information; the agenda will show the monthly activity. VIII. NEXT MEETING DATE — April 13, 2016 8 Housing Commission Minutes MARCH 9, 2016 IX. ADJOURNMENT With Commission concurrence the meeting was adjourned at 4:46 pm to April 13th, 2016. aLICJC) Patty Leon, Rec rding Secretary 9