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HomeMy WebLinkAboutPrelim - HA - 01/14/2016DRAFT PRELIMINARY MINUTES PALM DESERT HOUSING AUTHORITY MEETING THURSDAY, JANUARY 14, 2016 CIVIC CENTER COUNCIL CHAMBER 73510 FRED WARING DRIVE, PALM DESERT, CA 92260 I. CALL TO ORDER - 3:00 P.M. Chairman Spiegel convened the meeting at 3:00 p.m. II. ROLL CALL Present: Vice Chairman Jan C. Harnik Member Sabby Jonathan Member Van G. Tanner Member Susan Marie Weber Chairman Robert A. Spiegel Also Present: John M. Wohlmuth, Executive Director Robert W. Hargreaves, City Attorney Rudy P. Acosta, Assistant City Manager Rachelle D. Klassen, Secretary Russell Grance, Director of Building & Safety Ryan Stendell, 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 Frankie Riddle, Director of Special Programs Bo Chen, City Engineer Stephen Y. Aryan, Risk Manager John Cortez, Battalion Chief, Palm Desert Fire/Riverside Co. Fire Dept./Cal Fire Susan Trevino, Chief, Palm Desert Police/Riverside Co. Sheriff's Department Herman Lopez, Asst. Chief, Palm Desert Police/Riverside Co. Sheriff's Department Grace L. Mendoza, Deputy City Clerk III. ADJOURN TO CLOSED SESSION Reauest for Closed Session: PRELIMINARY MINUTES DRAFT PALM DESERT HOUSING AUTHORITY MEETING JANUARY 14, 2016 A. Conference with Real Property Negotiator pursuant to Government Code Section 54956.8: 1) Property: APN 622-020-096 Negotiating Parties: Agency: John M. Wohlmuth/Janet M. Moore/City of Palm Desert/ Palm Desert Housing Authority Property Owner: Palm Desert Housing Authority Under Negotiation: x Price x Terms of Payment With Authority Board concurrence, Chairman Spiegel adjourned the meeting to Closed Session at 3:00 p.m. He reconvened the meeting at 4:02 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 December 10, 2015. Rec: Approve as presented. B. CLAIMS AND DEMANDS AGAINST THE CITY/HOUSING TREASURIES - Warrants Dated 12/4/2015, 12/11/2015, 12/18/2015, 12/28/2015, and 1/4/2016 (Joint Consideration with the Palm Desert City Council). Rec: Approve as presented. Upon a motion by Harnik, second by Jonathan, and 5-0 vote of the Authority Board (AYES: Harnik, Jonathan, Tanner, Weber, and Spiegel; NOES: None), the Consent Calendar was approved as presented. VI. CONSENT ITEMS HELD OVER None VII. RESOLUTIONS None 2 PRELIMINARY MINUTES DRAFT PALM DESERT HOUSING AUTHORITY MEETING JANUARY 14, 2016 VIII. NEW BUSINESS A. REQUEST FOR AUTHORIZATION TO AWARD CONTRACT TO GARLAND/DBS, INC., IN A TOTAL AMOUNT NOT TO EXCEED $164,935 FOR DECK REPLACEMENT AND RELATED SERVICES AT PALM VILLAGE APARTMENTS (CONTRACT NO. HA34740A). Management Analyst Jessica Gonzales stated this request will allow the Authority to complete the necessary deck replacement for the Authority owned residential rental property Palm Village Apartments. She said Garland/DBS, Inc., has assessed the condition of the upper and lower deck and found several areas needing to be replaced. The contract with Garland is based on the competitively solicited pricing established through the Government Cooperative Purchasing Organization - U.S. Communities. Further, Garland procured bids for the labor portion from three local contractors within the Southern California area and will be subcontracting with Best Contracting Services, saving the Authority approximately $50,000. The Housing Commission reviewed the recommendation at its regular meeting of January 13 and recommended approval. Member Weber said it was unusual that local people couldn't be found to work with Garland. Ms. Gonzales replied that the one found in Palm Springs did not respond to Garland. Member Jonathan stated that at the Housing Commission they run into this problem frequently because the contract requires prevailing wage, and there are very few contractors in the Desert that are willing to pay prevailing wage. Member Weber added that bonding was also required. Member Tanner moved to, by Minute Motion: 1) Authorize award of the subject contract to Garland/DBS, Inc., Cleveland, Ohio, in a total amount not to exceed $164,935 (includes: proposed work in the amount of $149,941, plus 10% contingency in the amount of $14,994 for unforeseen conditions, and permit fees estimated to be between $7,000- $10,000) for deck replacement and related services at Palm Village, pursuant to Section 3.30.260 of the Palm Desert Municipal Code; 2) authorize the Palm Desert Housing Authority's Legal Counsel to negotiate and finalize an agreement with Garland/DBS, Inc.; 3) authorize Executive Director to review and approve written request for use of the contingency for unforeseen conditions and permit fees; 4) confirm participation with the U. S. Communities Government Purchasing Alliance ("U. S. Communities"); 5) authorize the Palm Desert Housing Authority Chairman and/or the Executive Director to execute the Agreement and any documents necessary to effectuate the actions taken herewith — monies have been included in the FY 2015-2016 Palm Desert Housing Authority's Operating Budget, in the appropriate Authority Accounts. Motion was seconded by Weber 3 PRELIMINARY MINUTES DRAFT PALM DESERT HOUSING AUTHORITY MEETING JANUARY 14, 2016 and carried by a 5-0 vote (AYES: Harnik, Jonathan, Tanner, Weber, and Spiegel; NOES: None). IX. CONTINUED BUSINESS None X. OLD BUSINESS A. REQUEST FOR APPROVAL OF CHANGE ORDER NO. 15 AND FOR ACCEPTANCE OF WORK FOR CONTRACT NO. HA29410B — CONSTRUCTION OF THE CARLOS ORTEGA VILLAS (PROJECT NO. 825-11) (Optimus Construction, Inc., Glendale, CA). Project Administrator Heather Buck said she was happy to bring forward the Acceptance of Work for the Carlos Ortega Villas and deductive Change Order No. 15 for Council's consideration. The contractor substantially completed the work in December and the property management company is getting the project ready for tenants to begin leasing in February. Director Tanner expressed his appreciation for an excellent job and looked forward to seeing the units occupied. He asked how long was the waiting list. Ms. Buck replied there are 400 on the waiting list for 72 units. Director Jonathan congratulated Ms. Buck on a job extraordinarily well done, stating the project was beautiful and it will serve the community well. He pointed out that the contingency for the project was 10% or $1.5 million, and it ended up using $267,000 of it. Additionally, Change Order No. 15 is a negative adjustment; it's a credit. Therefore, not only was the project completed beautifully and on time, it was also within or under budget. Mr. Hargreaves stated it was even better than that, recalling for the Council that when the contract was initially presented, there was a controversy because this contractor bided $1.5 million lower and there were issues with the bid. However, Council went forward with some consternation and awarded it to this contractor, and it was a real credit to Ms. Buck that the project has been brought in as well as it has. Director Jonathan moved to, by Minute Motion: 1) Approve deductive Change Order No. 15 in the total amount of ($69,084.90) to the subject contract with Optimus Construction, Inc., Glendale, California, for Construction of Carlos Ortega Villas; 2) authorize the Chairman to execute same; 3) authorize staff to release the remaining landscape maintenance payments included in this contract without withholding retention. El PRELIMINARY MINUTES DRAFT PALM DESERT HOUSING AUTHORITY MEETING JANUARY 14, 2016 4) accept the work as complete and authorize the City Clerk to file a Notice of Completion for the subject project with the Riverside County Clerk and Recorder — funds are available in Account Nos. 8718691-4400100 and 7038691-4400100 — Capital Improvements — for this purpose. Motion was seconded by Tanner and carried by a 5-0 vote (AYES: Harnik, Jonathan, Tanner, Weber, and Spiegel; NOES: None). XI. PUBLIC HEARINGS A. REQUEST FOR APPROVAL OF A GROUND LEASE AND REGULATORY AGREEMENT WITH ALLIED AFFORDABLE HOUSING, LLC, FOR PROPERTY LOCATED BEHIND THE DESERT ARC FACILITY, OF APPROXIMATELY 1.83 ACRES, KNOWN AS A.P.N. 622-020-096 (CONTRACT NO. HA34970). Ms. Moore stated that in 2011 the former Agency acquired the subject property for Affordable Housing. As part of the transition away from the Redevelopment Agency, the Authority was granted ownership. Over the last couple of years, staff has looked at several projects to which funding has been a challenge, and this site has two, it has a drainage and access challenge. Allied Affordable Housing, LLC, the proposed Lessee on this property, brought forward a proposed project of 36 units that will be made available to adults with developmental disabilities. If there are not enough adults to fill it, units will be available to affordable housing. All the units will qualify under affordable housing regulations, but they are requesting that the property is leased to them. They have asked for 75 years, but the law states 55 years. Staff's recommendation is 55 years with a possible extension of 20 years, but allowing Legal Counsel to review that option, because there is a possibility that it will not be able to do 75 years. The reason the Lessee is requesting 75 years, is because after about 10 to 15 years they can recapitalize the project for their own process in order to continue operation. She noted the potential Lessee was available to answer questions. Member Jonathan noticed that in the Lease Agreement under Paragraph 2.4.1, the term is blank. He asked if that would be filled in with 55 and the option may or may not be retained, but it would not exceed 20 years with the total not exceeding 75 years. Ms. Moore concurred, stating that the Authority Counsel requested that she leave that blank until they are able to review and finalize the agreement. Chairman Spiegel 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. Member Jonathan moved to, by Minute Motion: 1) approve a Ground Lease and Regulatory Agreement with Allied Affordable Housing, LLC, substantially as to form, for l: PRELIMINARY MINUTES DRAFT PALM DESERT HOUSING AUTHORITY MEETING JANUARY 14, 2016 property located behind Desert ARC, of approximately 1.83 acres, known as A.P.N. 622-020-096, for the purpose of obtaining funding for the development of a 36-unit affordable community that will include accessibility for residents with special needs; 2) authorize Legal Counsel to finalize the Ground Lease and Regulatory Agreement; 3) authorize the Chairman and/or Executive Director to execute any documents consistent with the actions taken herewith. Member Tanner asked if the 55-year term was included in the recommendation. Ms. Moore explained that the 55-year term will be added regardless, but the reason it was left blank was because staff wants the option to extend for 20 years if Legal Counsel finds it acceptable. If the Board wants to grant the 55-years with an option for 20 more, that's what they would request and it would be the best option. Member Jonathan modified the motion to approve staff recommendation, including a 55-year term, recognizing that an extension provision may or may not be included in the final document. Motion was seconded by Tanner and carried by a 5-0 vote (AYES: Harnik, Jonathan, Tanner, Weber, and Spiegel; NOES: None). Vice Chairman Harnik commented this was a much needed project and wonderful asset for the community. XII . REPORTS, REMARKS, AND AUTHORITY BOARD ITEMS REQUIRING ACTION A. EXECUTIVE DIRECTOR Please refer to City Council Minutes of this date, Section XVIII - Reports and Remarks, Item E(2)(D), for dialog regarding Chairman Spiegel's requests. B. AUTHORITY COUNSEL None C. CHAIRMAN AND MEMBERS OF THE AUTHORITY None IV PRELIMINARY MINUTES PALM DESERT HOUSING AUTHORITY MEETING XIII. ORAL COMMUNICATIONS - C None XIV. ADJOURNMENT DRAFT JANUARY 14, 2016 With Authority Board concurrence, Chairman Spiegel adjourned the meeting at 5:32 p.m. ATTEST: RACHELLE D. KLASSEN, SECRETARY PALM DESERT HOUSING AUTHORITY ROBERT A. SPIEGEL, CHAIRMAN VA