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2014-06-11 VHC MinutesMINUTES OF THE REGULAR VERNON HOUSING COMMISSION MEETING HELD WEDNESDAY JUNE 11, 2014, IN THE COUNCIL CHAMBER OF THE CITY HALL LOCATED AT 4305 SANTA FE AVENUE, VERNON, CALIFORNIA MEMBERS PRESENT: Michael Hughes, Henry Haskell, Eric Gustafson (partial meeting), John Kriste, and Melissa Ybarra MEMBERS ABSENT: Michael McCormick (entire meeting) and Hector Garcia (entire meeting) The meeting was called to order at 6:03 p.m. by Chairperson Hughes. Commissioner Ybarra led the flag salute. Chairperson Hughes confirmed that there are no changes to the agenda. PUBLIC COMMENT Chairperson Hughes announced that this was the time allotted for public comment and inquired whether anyone in the audience wished to address the Commission. No one responded. MINUTES 1. Minutes of the Special Vernon Housing Commission Meeting held April 9, 2014, to be received and filed. It was moved by Ybarra and seconded by Haskell to approve the April 9, 2014, Minutes. Motion carried, 4-0; Gustafson had not yet entered the meeting. NEW BUSINESS 1. Authorization of a New Agreement with Solari Enterprises, Inc. for Leasing and Consulting/Advisory Services Related to City of Vernon Owned Residential Property. Recommendation: (1) Find that approval of the proposed award of a contract for leasing and consulting/advisory services related to City of Vernon owned residential property is exempt under the California Environmental Quality Act Vernon Housing Commission Meeting Minutes June 11, 2014 Page 2 of 6 (“CEQA”) in accordance with Section 15061(b)(3), the general rule that CEQA only applies to projects that may have an effect on the environment; and (2) Authorize the Commission Director, or his designee, to finalize the new proposed agreement with Solari Enterprises, Inc. for leasing and consulting/advisory services related to City-owned residential property, at a total amount not to exceed $25,000. Legal Counsel Stuart Leviton reported on the recommendation. He advised that staff met with Solari Enterprises, Inc. (“Solari”) to discuss the scope of work and compensation under the new agreement. All were in agreement on the scope of work which includes the initial lease-up procedures, and on-call consulting services. However, Leviton explained that the parties have not yet reached an agreement on the price. Commissioner Gustafson entered the meeting. Leviton reported that Solari submitted a proposal this afternoon, but that staff has not had an opportunity to review. The proposed recommendation would authorize staff to negotiate a new agreement with a not to exceed cost of $25,000. Leviton advised that it is not anticipated that the actual cost would exceed said limit. He explained that all units are fully leased; therefore, the need for lease-up procedures and/or consulting services is anticipated to be minimal. In response to Commissioner Ybarra’s inquiry on associated costs, Leviton advised that staff is seeking authority to enter into an agreement with a not to exceed total cost of $25,000. Commissioner Ybarra sought clarification on the scope of work. To explain, Leviton advised that should there be a vacancy, Solari would be available to conduct the initial lease-up procedures. At the moment, all vacancies have been filled, and it is not expected that there would be a significant number of vacancies in the near future. In response to Commissioner Ybarra’s inquiry as to why this task could not be performed by the City, Leviton advised that this was the direction that was provided to staff by the Commission during the last meeting. The Commission had expressed a desire to have Solari remain involved in the lease-up procedures. Leviton recommended that in the future, the Commission review the process and determine whether the City should perform these Vernon Housing Commission Meeting Minutes June 11, 2014 Page 3 of 6 procedures. Leviton further explained that there is no contractual obligation to use Solari’s services to perform these procedures; but rather, should there be a need or desire, they are available as a resource. Commissioner Haskell stated that the recommendation is entirely responsive to the Commission’s comments and concerns. He sought clarification on whether it is staff’s intentions to use Solari on all task relating to the initial leasing of vacant units. Leviton confirmed that it is staff’s intent to follow the direction of the Commission. Unless the Commission advises differently, Solari will be used for the initial lease-up procedures. He suggested that as lease-ups come up, the Commission evaluate and make a determination on how to proceed on a go-forward basis. It was moved by Haskell and seconded by Gustafson to authorize a new agreement with Solari Enterprises, Inc. for Leasing and Consulting/Advisory Services related to City of Vernon owned residential property. Motion carried, 5-0. JUNE LOTTERY AND WAIT LIST 1. In accordance with Section 3, Random Selection of Potential New Leasees, of the Vernon Housing Commission Lease-Up Procedures for New Tenants, a lottery drawing of all Expression of Interest Forms received between 5:01 p.m. on December 10, 2013 and 5:00 p.m. on June 10, 2014, will be conducted to create a wait list for all units that become available June 11, 2014 or later. The Commission conducted the lottery. Any vacancy that opens from this day forth will utilize the list created this day. ORAL REPORTS & COMMENTS FROM STAFF AND COMMISSION MEMBERS 1. Quarterly budget report to be presented by City Finance Director. Finance Director William Fox presented the City Housing Department Budget. In addition to budget information, the presentation included a mission statement, the organizational structure, staffing levels, which included a part-time Housing Coordinator and a part-time Maintenance Worker for fiscal year 2015, recent accomplishments and goals. Vernon Housing Commission Meeting Minutes June 11, 2014 Page 4 of 6 In response to Chairperson Hughes’ concerns on having a familiar maintenance worker dedicated to the residents, Fox explained that there may be a different person on staff in the rotation; however, all employees will be identified by their Vernon work shirt or identification. Fox presented the budgeted expenses, incurred expenses, and the forecast for the remainder of fiscal year 2014. Fox further presented on the proposed budget for fiscal year 2015. He explained that the increase in the proposed budget compared to the current year is due to the Solari Enterprises, Inc. (“Solari”) agreement and the allocation of legal services not previously budgeted within the Housing Department. Fox advised that excess revenue, after total expenditures, will be set aside as reserves for capital projects related to the housing stock. Commissioner Haskell inquired whether the City could divest the reserves towards other expenses. In response, Fox explained that capital improvements have been identified for the housing stock, such as new roofs. The reserve set aside account would allow the Housing Department to be fiscally prudent as a separate account, and allow the homes to take care of themselves. Legal Counsel Stuart Leviton further clarified that the City Council can use the funds as it sees fit. The capital reserves set aside is a proposal, there is no legal requirement or restriction on the funds. Fox added that any excess revenue is allocated within the general fund, but staff is proposing that the funds stay within the Housing Department in order to address capital improvement needs. Fox highlighted various accomplishments including the leasing of all units, the development of a customer call-in log and customer maintenance log. As part of ongoing and future projects, Fox advised that a capital improvement plan will be developed, guidelines for emergency/non-emergency repairs and landlord vs. tenant responsibilities will be created, and existing lease terms will be evaluated for completeness and conformance with best practices. Commissioner Haskell recalls that the Commission was scheduled to receive a capital improvement report during this meeting. In Vernon Housing Commission Meeting Minutes June 11, 2014 Page 5 of 6 response, Deputy City Administrator Kristen Enomoto advised that said report was one of the key deliverables under the original Solari agreement. However, the City had not received the report, but staff had followed up with Solari and hoped to receive the report within the upcoming weeks. In response to the plans to evaluate the existing lease terms, Commissioner Haskell inquired whether there was any reason to believe that the policies were not complete. To the contrary, Fox explained that anytime someone takes over a responsibility, it is good practice to review existing policies and procedures. There may or may not be a need for any changes. 2. Report on transition of duties from Solari Enterprises, Inc. to City staff, including current and upcoming related activities. Finance Director William Fox reported on a recent meeting between City staff and Solari Enterprises Inc. (“Solari”). He noted that the exchange was amicable and that all files were provided. Solari additionally provided the context of the files and any outstanding issues. It is a good relationship, and he appreciates their cooperation. 3. Vernon Village Park progress report to be presented by the Director of Public Works, Water & Development Services. Director of Public Works, Water and Development Services Kevin Wilson reported that the foundation has been set and that the utilities will soon be installed. The housing project appears to be on schedule. 4. Announcement on the transition of summary Minutes to “action” Minutes effective July 1, 2014. Deputy City Clerk Ana Barcia announced the transition to action minutes effective July 1, 2014, advising that this would eliminate some of the administrative work load in preparing for meetings. In response to Commissioner Haskell’s inquiry whether the change would allow for the minutes to be provided timely, Barcia confirmed that it would. The change will be beneficial for both the Commission and staff. 5. Brief reports, announcements, or directives to staff from the Commissioners and Commission Officers. Vernon Housing Commission Meeting Minutes June 11, 2014 Page 6 of 6 Finance Director William Fox introduced new Housing Coordinator John Dougherty and reported on his experience and trade skills. Dougherty also has experience in managing tenant relations. Commissioner Kriste reported on his experience with Dougherty as he had a service call at his home today. Kriste is pleased with the experience, and advised that Dougherty was very professional. Commissioner Haskell recalled that a report on the housing stock was to be provided, with an inventory of current vacancies. He is interested in seeing the presentation. In response, Deputy City Administrator Kristen Enomoto advised that part of the reporting was included in the budget presentation. However, as the work transitions back to the City, said reporting will resume in full at the next meeting. In response to Commissioner Haskell, Enomoto confirmed that all units are leased. Enomoto further responded that there is still one spot left for first responder priority; there are currently three first responder residents. SECOND PUBLIC COMMENT Chairperson Hughes announced that this was the time allotted for public comment and inquired whether anyone in the audience wished to address the Commission. No one responded. With no further business, at 6:47 p.m., it was moved by Ybarra and seconded by Gustafson to adjourn the meeting. Motion carried, 5-0. ________________________ Michael Hughes Chairperson ATTEST: _________________________ Ana Barcia Deputy Secretary