2016-11-09 VHC Agenda Packet (Special)California Public Records Act ("PRA"): In compliance with the PRA, the documents pertaining to agenda
items, including attachments, which are presented to the Vernon Housing Commission in open session are
available for public inspection. They may be inspected during regular business hours in the Office of the City
Clerk at Vernon City Hall, 4305 Santa Fe Avenue, Vernon, California 90058, no prior appointment necessary, and on the City’s website at www.cityofvernon.org.
Americans with Disabilities Act (“ADA”): In compliance with the ADA, if you need special assistance to
participate in the meeting, please contact the Office of the City Clerk at (323) 583-8811. Notification of at least
24 hours prior to the meeting or time when services are needed will assist the City staff in assuring that reasonable arrangements can be made to provide accessibility to the meeting or service.
Agenda
Special Meeting of the Vernon Housing Commission
Wednesday, November 9, 2016, 6:00 p.m.
Council Chambers
4305 Santa Fe Avenue
Vernon, CA 90058
Melissa Ybarra, Chairperson
Kyle Cooper, Vice Chairperson
Hector Garcia, Commissioner John Kriste, Commissioner Steven Froberg, Commissioner Steven Florman, Commissioner
Frank Gavina, Commissioner
CALL TO ORDER & FLAG SALUTE
CHANGES TO THE AGENDA
PUBLIC COMMENT - At this time the public is encouraged to address the Vernon Housing Commission on
any matter that is within the subject matter jurisdiction of the Commission. The public will also be given a
chance to comment on matters which are on the posted agenda during Commission deliberation on those
specific matters.
PRESENTATION
1. Status of the Rehabilitation Project of the Single Family Housing Unit Located at 4323 Furlong Place
Presented by: Felix Velasco, Assistant Engineer
/ / /
/ / /
Special Vernon Housing Commission Meeting Agenda
November 09, 2016
Page 2 of 3
NEW BUSINESS
2. Authorization to Offer All Tenants in Non-Remodeled Units an Opportunity to Relocate to a
Remodeled Unit and Establish a Relocation Priority Interest List Recommendation:
A. Find that the actions recommended in this staff report do not constitute a “project” pursuant to
Section 15378(b)(2) of the Guidelines to the California Environmental Quality Act (“CEQA”), because such recommendations constitute an administrative activity; and even if the adoption of
the proposed items did constitute a project, it would be exempt from 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
B. Approve the establishment of a temporary/permanent Relocation Priority Interest List to be used
for the City Housing Remodel Project which would remain in effect until all units are remodeled;
and
C. Authorize staff to proceed with offering a temporary/permanent relocation opportunity to tenants in non-remodeled City-owned housing units.
LOTTERY - PERMANENT/TEMPORARY RELOCATION PRIORITY INTEREST LIST
3. Conduct a Lottery of All Interested Subject Tenants and Establish a Permanent/Temporary Relocation Priority Interest List (Subject to Passage of Agenda Item No. 2)
DISCUSSION AND POSSIBLE DIRECTIVES TO STAFF
4. Preliminary Discussion Regarding Potential Rent Adjustments for all City-Owned Housing Units Recommendation:
A. Find that the discussion of potential rental rate adjustments for all City-owned housing units is
exempt under the California Environmental Quality Act (“CEQA”) because such is not a “project” as that term is defined in the CEQA Guidelines section 15378, and even if it were a
project, it would still be exempt in accordance with Section 15061(b)(3), the general rule that
CEQA only applies to projects that may have a significant effect on the environment; and
B. Direct staff to develop a rent schedule with increased rates based on the Consumer Price (all items) Index to be presented at a future Vernon Housing Commission meeting.
/ / /
Special Vernon Housing Commission Meeting Agenda
November 09, 2016
Page 3 of 3
ORAL REPORTS, PRESENTATIONS & COMMENTS FROM STAFF AND COMMISSION MEMBERS
5. Brief reports, announcements, or directives to staff from the Commissioners and Commission Officers. 6. Upcoming Meetings:
A. Next regular meeting: December 14, 2016 at 6:00 p.m.
SECOND PUBLIC COMMENT - The public is encouraged to address the Vernon Housing Commission on
any matter that is within the subject matter jurisdiction of the Commission.
ADJOURNMENT
I hereby certify under penalty of perjury under the laws of the State of California, that the foregoing agenda was
posted on the bulletin board at the main entrance of the City of Vernon City Hall, located at 4305 Santa Fe
Avenue, Vernon, California, and on the City’s website, not less than 24 hours prior to the meeting set forth on
this special meeting agenda. Dated this 8th day of November, 2016.
By: ________________________________
Maria E. Ayala, CMC
Secretary
RECEIVED
Nov 0 7 2016
CITY CTERK'S OFFICE
REGEIVED
]0v 07 ms
CITY ADMINISTRATION
srAFF REPORT @ r\-l re
PUBLIC WORKS WATER AND DEVELOPMENT SERVICES
DEPARTMENT
DATE:
TO:
FROM:
November 9, 2016
Honorable Members of the Vernon Housing Commission
Derek Wieske, Dire.ctor of Public Works, Water and Development Services
Department -Vu/
Originator: Felix Velasco, Assistant Engineer fl
Status of the Rehabilitation Project of the Single Family Housing Unit
Located at 4323 Furlong Place
RE
Recommendation
Receive and file a presentation regarding an update of the rehabilitation project of the single
family housing unit located at 4323 Furlong Place.
Discussion
On April 7,2015, the City Council directed staff to rehabilitate the seven non-remodeled units
(two at a time) applying the same standard utilized in the Fiscal Yeu 200712008 Remodel.
Subsequently, on July l, 2015, the Ciry of Vemon entered into an agrcement with Y&M
Architects to prepare the Architectural drawings to rehabilitate all the non-remodeled City-
owned single family residences and convert them into accessible units in accordance with the
American Disabilities Act of 1990 (ADA) and the Califomia Building Code.
On March 17, 2016 the Public Works, Water and Development Services Departrnent advertised
the notice inviting sealed, competitive bids for the renovation of4323 Furlong Place. The notice
inviting bids was posted on the Ciry's website and published in the Vemon Sun newspaper, and
was also advertised in the following construction related websites: Bid Americ4 Bidboard
Construction Contract Advertising, McGraw-Hill Construction, Reed Constnrction Data and Bid
Clerk. The specifications included the standard terms and conditions for the contract that was
approved by the City Council. The bids for Contract No. CS-0602, City Housing Improvements,
were received and opened on April 13, 2016. The calculated bid results were as follows:
1. St. George Groupe, Inc.
2. SD Design Constuction Corp.
3. Dependable Construction Inc.
$ 119,875
s 126,300
$ 224,000
On May 17,2016, the City of Vemon entered into an agreement with St. George Groupe, Inc. to
remodel the unit located at 4323 Furlong Place. The rehabilitation project of 4323 Furlong Place
consisted of building a new kitchen, new bathroom, new laundry room and new accessibiliry
ramp that complies with disabled accessibility regulations. Moreover, the scope of work also
included the complete rewiring of the electrical system, re-piping of the gas, water and sewer
system, new water heating system, new roofing system, new windows, new exterior vinyl siding
and new lawn with a new irrigation system. The current remodel project is scheduled to be
completed by mid-Novembet 2016.
Upon completion of the rehabilitation project, the Public Works, Water and Development
Services Department is proposing to host an open house event at the remodeled residence where
dl City of Vemon tena[ts will be given an oppornrnity to observe and walk through the
remodeled residence. Statr will be available at this event to answer any questions tenants may
have in regards to the rehabilitation project, ADA guidelines or any other City housing-related
questions.
Fiscal Imoact
The cost for the rehabilitation of 4323 Furlong Place is approximately $128,000 including
$6,000 for appliances. $300,000 was budgeted in the Fiscal Year 2016-2017 to remodel two
single family dwelling units. Therefore. barring any significant increase in construction prices.
the budgeted amount will be suffrcienl to cover the cost of remodeling one additional unit.
Attachment(s)
l. Presentation ofplans for the remodel ofthe single family unitlocaled at 432l Furlong Place.
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CITY ADMINISTRATI()N
DATE:
TO:
FROM:
STAFF REPORT 4 r'-3-t u
PUBLIC WORKS, WATER AND DEVELOPMENT SERVICES
DEPARTMENT
November 9, 2016
Honorable Members of the Vernon Housing Commission
Derek Wiesk ctor of Public Works, Water and Development Services
Department
Originator: Anthony Zarate, Administrative Secretary iYZ
Authorization to Olfer All Tenants in Non-Remodeled Units an Opportunity
to Relocate to a Remodeled Unit and Establish a Relocation Priority Interest
List
RI
Recommendation:
A. Find that the actions recommended in this staffreport do not constitute a "project" pusuant
to Section 15378(b)(2) of the Guidelines to the Califomia Environmental Quality Act
('CEQA), because such recommendations constitute an administrative activity; and even
if the adoption of the proposed items did constitute a project, it would be exempt from
CEQA in accordance with Section 15061(bX3), the general rule that CEQA only applies
to projects that may have an effect on the environment; and
B. Approve the establishment of a temporary/permanent Relocation Priority Interest List to
be used for the City Housing Remodel Project which would remain in effect until dl units
are remodeled; and
C. Authorize staff to proceed with offering a temporary/permanent relocation opporonity to
tenants in non-remodeled City-owned housing units.
Background
On October 4, 2016, the City Council of the City of Vemon authorized staff to proceed with the
remodel of a second housing urit to accommodate the ongoing City Housing Remodel Project. At
this time, the following six units have not yet been remodeled:
o 3361 Fruitland Avenue. 3365 Fruitland Avenue
Page I of3
. 4f2l Furlong Placeo 4324 Furlong Placeo 4325 Furlong Placeo 4328 Fwlong Place
Currently, the following units in the City are vacant and available to accommodate the tenants of
the subject single family units:
. 3376 E. 506 Street (2BR/1 Bath Apartment). 3353 Fruitland Avenue (2BR/1 Bath House). 60 1 0 Oak Street (2BPJ2 .5 bath Townhouse). 2915 E. 606 Place (28P./2.5 bath Townhouse)
Since all non-remodeled units are presently occupied, existing tenants would need to be relocated
in order to proceed with the remodel of a second housing unit. On October 4,2016, the City
Council directed staff to suwey all tenants in non-remodeled units in an effort to gauge resident
interest in a relocation, and develop the least bwdensome method ofvacating non-remodeled units.
Staffprovided the affected tenalts in the units listed above the option to choose between temporary
and permanent relocations to remodeled and currently-vacant City-owned units. Staff presented
the results of this Survey to Ciry Council at its November l, 2016 meeting.
The results ofthe Survey have been summarized in the attached Tenant Relocation Survey Results
(Attachment 3). The City received responses from all those surveyed in the six non-remodeled
unirs listed above. Based on the assessment ofthe Survey results, it has been determined that five
ofthe six tenants in non-remodeled units are willing to relocate, either temporarily or permanently
to another unit. Of those five tenants, three indicated a preference in permanently relocating to the
remodeled housing unit located at 3353 Fruitland Avenue. Two tenants have an interest in
temporarily moving to the 3 3 53 Fruitland unit and one tenant is interested in a temporary relocation
to the two-bedroom aparfinent located at 3376 E.50ft Street. Two tenants are irterested in
relocating to a different City-owned unit in Vemon that may become available at a later time. One
tenant has no interest in either a temporary or a permanent relocation to any unit. None of the
tenants surveyed had any interest in relocating to either of the condominiums in the City of
Huntington Park, whether temporarily or permanently.
Staff is now seeking approval from the Vemon Housing Commission to proceed with offering the
subject tenants the option to permanently/temporarily transfer to one of the available mits. Any
permanent/temporary relocations would be carried out in accordance with the attached Procedure
Regarding Leasee/Authorized Occupant Relocation as adopted by the Housing Commission at the
September | 4, 201 6 meeting.
As such, it is further recommended that the Housing Commission authorize staff to establish a
Permanent/Temporary Relocation Priority Interest List by conducting a lottery for the five tenants
in non-remodeled units that shared al interest in the relocation oppornrnity. Once established
through a lottery, this priority list would remain in effect while the City's Housing Remodel Project
is underway and until all units are remodeled. Tenants not interested in a permanent relocation
would still have the option of a temporary relocation.
Page2 of3
Ifa Permanent/Temporary Relocation Priority Interest List is approved, staff proposes to proceed
with the following:
l. Conduct a lottery of all interested subject tenants at the Vemon Housing Commission
meeting and establish a Permanent Relocation Priority Interest List.
2. Notifr individuals on the priority list of the availability of a remodeled unit in subsequent
order until offer is accepted and, upon tenant consent, enter into a new one-year lease for
said unit at the current rental rate.
3. Provided there are remaining tenants on the priority interest list, it will remain active for
any additional remodel work related to the City Housing Remodel Project.
istep 3 will be repeated if and/or when remodeled units become available.
It is proposed that the opportunity to join the Permanent/Temporary Relocation Priority Interest
List be offered only once to all five interested tenants and be utilized only as it relates to the City
Housing Remodel Project. If the Housing Commission supports stalf s recommendation, then staff
would immediately goceed with the steps detailed above. Once a non-remodeled unit has been
vacated, staff could then initiate the public bidding process and bring a recommendation to award
a construction contract to the City Council by euly 2017 , completing construction by September
2017. The costs for the remodel of4323 Furlong Place are detailed in the attached cost breakdown.
It should also be noted that the architectural plans were designed to be standardized and applied to
the remaining non-remodeled units, resulting in lower architectural design costs for subsequent
remodels.
Fiscal Impact
Based on the cost for the full remodel of the unit located at 4323 Furlong Place, it would be
anticipated that any subsequent remodels would be no more than $150,000. There are suflicient
funds available in the Fiscal Yeat 2076-2017 1048 (City Housing) account. Provided the Housing
Commission approves the temporary/permanent relocation of the tenants in the non-remodeled
units, the remodeled, vacant unit selected would immediately begin generating revenue at the
current rental rate; and the non-remodeled, vacant writ would be next in line for the Housing
Remodel Project. Any costs associated with a permanent relocation would include preparing any
remodeled rurit that becomes available for occupancy, which on average costs approximately $500
per unit and relocating costs ranging from $1,000 - $2,000 per move, dependent on the size of the
housing unit.
Attachments
1. Procedure Regarding Leasee/Authorized Occupant Relocation
2. Contract No. CS-0602: Remodel of4323 Furlong Place Cost Breakdown
3. Results of Tenant Relocation Survey
Page 3 of3
Vernon Housing Commission
Procedure Regarding Leasee/Authorized Occupant Relocation
Pursuant to ordinance l l 83, as amended, and the Vemon Rental Housing Policy
(.'vRHP'), the vemon Housing Commission ("vHC") hereby adopts the following procedure to
uddr.r, uny lease/authorized oCcupant's need/desire to be re-located, either temporarily or
permanentlY.
Recitals
A. The VHC is committed to managing its housing stock according to "best
practices" for private, residential housing. The VRHP requires that all procedures be "neutral,
fair, and reasonable."
B. Every lease/authorized occupant is entitled to a habitable rental unit'
C. On September 19,2012, the VHC adopted its Unit-to-Unit Transfer
Procedures ("Transfer Procedures").
D. On December 10.2014, the VHC adopted its Procedures Regarding
Temporary Relocation ofLeasees and Authorized Occupants ("Temporary Relocation
Procedures").
E. Since the adoption ofthe Transfer Procedures and the TemPorary
Retocation Procedures, the VHC has concluded that there is a need for a single, comprehensive,
relocation procedure covering both temporary and permanenl relocations. This Comprehensive
Relocation Procedure is intended to and does supersede both the Transfer Procedures and the
Temporary Relocation Procedures.
F. This Comprehensive Relocation Procedure is intended to apply to the
following situations:
l. TemDorarv Relocation - Ciw Initiated: If, through no fault ofa
Leasee, Authorized Occupant, and/or Guest, a rental unit becomes temporarily
uninhabitable, as determined by the City, the Leasee and any Authorized Occupants shall
be entitled, at the Leasee's option, to be re-located to housing accommodations
comparable to the rental unit in good condition for so long as the rental unit is
uninhabitable.2. Permanent Relocation - City Initiated: Any leasee of a City of
vernon owned housing unit may request a permanent relocation to any other city-owned
unit on a priority basis.
3. Permanent Relocation - Tenant Initiated: Any leasee ofa City of
vernon owned housing unit may request a permanenl relocation to any other City-owned
unit upon availability.
Procedure Regarding Leasee/Authorized OccuPant Relocation
2ll'.t1c
C. The VHC desires to adopt procedures with respect to the relocation of
Leasees and Authorized occupants that are "neutral, fair, and reasonable." The vHC recognizes
that unless ir uniformly appliei a relocation procedure to all leasees, it will not be treating all
Ieasees neutrally and fairlY.
Procedures
A. TemporarvRelocations
l. When Temporary Relocation is Authorized' Temporary relocation shall
be authorized, at City expense, only ifa rental unit is uninhabitable or if it is determined that in
light ofrequired ,.puir. io a rental unit, tempolary relocation will facilitate more expedient and
.J.t "ff".tiu" repaiis, even when the cost oftemporary relocation is taken into account. Whether
relocation should be authorized shall be determined on an objective basis in light ofbest
practices for a private landlord, and shall be determined by disinterested City staff and/or
ionsultants who have expertise with respect to the subject repair(s).
a. Required Relocation. If the City determines that a rental unitis
uninhabitable, relocation shall be required until such time as the rental until is retumed to
a habitable condition. Habitability shall be determined in light of the rental unit's cunent
condition and in light ofthe effect any needed repairs may have on the habitability ofthe
rental unit during the course of repairs.
b. Optional Relocation. Ifa rental unit is otherwise habitable, a
Leasee shall have an option either to accept relocation or to decline relocation, at the
Leasee's sole discretion, even if the total cost to repair to the rental unit shall be higher in
light of the non-relocation.
2. TyPes ofAlternative Housing' Generally, the type ofaltemative housing
to which a Leasee and an Authorized Occupant is entitted shall be determined by the expected
length of time altemative housing is required. As a general rule, if a temporary relocation is
"*pi.t"d to last no more than 30 days, the relocation shall be presumed to be "short-term." As a
general rule, ifa temporary relocation is expected to last for more than 30 days, the relocation
ihall be presumed to be "long-term." Any presumption created by this procedure may be
overcome if, as determined by the City, and based on the facts and circumstances ofany
particular case, an altemative categorization is appropriate.
a. Temporary Short-term Relocation. As a general rule, if temporary
short-term relocation is authorized, the altemative housing shall be in the form ofa
qualifiing hotel or other short-term housing option, as provided for in the ERP, discussed
below.
b. Temoorarv Lone-term Relocation. As a general rule, if temporary
long-term relocation is authorized, the altemative housing shall be in the form ofa
comparably fumished apartment with a comparable number of bedrooms and bathrooms
as the subject rental unit.
Procedure Regarding Leasee/Authorized Occupant Relocation
3ll'.is(
3.ReimbursableRelocationExpenses.lftemporaryrelocationisauthorized,
the City shall bea. ull reffionable costs associated with the relocation' including the cost of
altemaiive housing, the reasonable cost, ifany, of moving personal possessions fiom and to the
rental unit to the timporary housing, and any reasonable increase in food costs, if any,
necessitated by the relocation. To ihe extent the City's Expense Reimbursement Policy then in
effect (.,ERp',j covers a subject expense, the ERP shall govem the type ofexpense that may be
covered and the amount ofioverage. To the extent the ERP does not cover a subject exPense, an
expense may be covered only if it is actually incurred, is reasonable as determined by the City,
and only for the actual amount ofthe expense.
4. Rent Abatement as an Alternative. If a Leasee who is otherwise entitled to
temporary relocation i*t"ud.hoot.t to re-locate on his or her own, the Leasee shall be entitled
to rint abatement for the length oftime temporary relocation would have otherwise been
authorized.
5'AoorovalRequiredbyCiwAttomevoroutsideCounsel.Iftheamountof
expected reimbursable relocation expenses is in excess of$5,000, prior approval ofthe
expenditure fiom the City Attorney or outside counsel to the vHC shall be required.
B, PermanentRelocations
City Initiated Permanenl Relocat ions
l. Ifa temporary long-term relocation becomes necessary as set forth in this
procedure, the leasee, at the leasee's sole option, may request a permanent relocation to a then
vacant City-owned housing unit in lieu ofa temporary long-term relocation'
2. A leasee shall have l0 days from the date ofreceiving notice ofthe need
for a temporary long-term relocation to elect a permanent relocation. A permanent relocation
may be eiected only ifa housing unit is vacant at the time ofthe election and the vacant unit can
be occupied within 30 days ofthe election.
3. Ifa leasee elects a permanent relocation, the leasee shall have priority over
all other existing or potential new leasees to select a vacant housing unit'
4. No transfer fee shall be due for a City initiated permanent relocation'
5. Any leasee permanently relocating to a different unit will immediately pay
the then established market rent for the unit to which the leasee has relocated. This will require a
review and determination of the leasee's credit worthiness to lease such unit.
Leasee Initiated Permanent Relocations
l. All permanent relocation requests initiated by a leasee must be submitted
in writing by the leasee on the anached Permanent Relocation Request Form.
Procedure Regarding Leasee/Authorized Occupant Relocatron
4lt'),.gc
2- A leasee must have occupied his,her then current unit for a minimum of
one year prior to submitting a Permanent Relocation Request Form'
3. A maximum ofone Permanent Relocation Request Form per leasee will
be accepted in any calendar year and shall be valid for that calendar year only'
4. Permanent Relocation Request Forms shall be accepted anytime
throughout the year and shall be randomly rank ordered onto a wait list through the same lottery
procel condu"ied each June and December for potential new leasees. There shall be no priority
given to first responders for leasee initiated permanent relocation requests'
5. After the priority given to existing leasees with a Financial Hardship
pursuant to Section 4 ofthe Appial Procedures for Existing Tenants Experiencing Transitional
ilardship adopted July 18, 2012, the foltowing order shall be followed. when a vacant housing
unit is riady ior leasing, the vacant unit shall first be offered to the leasee who is first on the
Tenant Initiated Permanent Relocation Wait List that was in effect at the time the housing unit
became vacant. Ifthat leasee either does not want to occupy the vacant unit, or does not qualifl
for lhe vacant unit, then the vacant unit shall be offered to the next leasee on the Tenant Initiated
Permanent Relocation wait List. If the vacant unit has been offered to all leasees on the
applicable wait List, and none ofthe leasees either wants to occupy the vacant unit or qualifies
foi the vacant unit, then the vacancy shall be offe red to the appropriate person on the wait list for
potential new leasees in accordance with the procedures for that wail Iist
6.Atransferfeeof$l,000shallbedueuponapprovalofatransferrequestto
cover the costs associated with preparing the unit for new occupancy.
7. Any leasee permanently relocating to a different unit will immediately pay
the then established market rent for rhe unit to which the leasee has relocated. This will require a
review and determination ofthe leasee's credit worthiness to lease such unit'
CITY OF VERNON
CONTRACT No. CS-0602: REMODEL OF 4323 FURLONG PI-ACE
COST BREAKDOWN
CONSTRUCTION TASKS UnitCost
ii.miG"- ca,p"t floot-
Replace lhe water heating system (water heater, gas connection line and
water connection lines) $ 3,375'00
Patch, paint and texture walls and ceiling $ 8,500 00
Replace sewer drainage system to properw tine $ 1,200 00
Replace exlerior crawl space screens and side vents $ 240.00
lnstall insulated vinyl siding over the exterior gf the house $ 7,600.00
lnstall a door bell S 160.00
Deslqn and install an aulomatic irigation system S 1,850.00
Remove and replace lawn $ 6,000.00
lnstall a 1' concrete mo,v striq around the perimeter of the house $ 960.00
Construct new brick planter I 1,800.00
with 1' vinvl wood blinds
and exterior fmures/recessed lighting as noted on the
o, carpet with tile
Total Construction Cost $
ADA APPLIANCES
127,660.00
Unit Cost
s 127,660.00
Additional drywall installation
1 .021 .7
1.103
1 .793 48
83
Total Appliances Cost $6,644 40 $
TOTAL PROJECT COST 9 134,304.40
Page 2 ot 2
$ il8.62Sales Tax
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STAFF REPORT
CITY ADMINISTRATION
RECEIVED
Nov 08 20t6
CIIY CLERl('S OFFICE
lt 6*l'b
DATE:
TO:
FROM:
November 9, 2016
Honorable Members of the Vernon Housing Commission
Vernon Housing Commission Rent Subcommittee 4^/
RI,
Originator: Derek Wieske, Director of Public Works, Water & Development
Services
Preliminary Discussion Regarding Potential Rent Adjustments for all City-
Owned Housing Units
Recommendations
A. Find that the discussion of potential rental rate adjustnents for all City-owned housing
units is exempt under the Califomia Environmental Quality Act C'CEQA) because such
is not a "project" as that term is defined in the CEQA Guidelines section 15378, and even
if it were a project, it would still be exempt in accordance with Section 15061 (b)(3), the
general nrle that CEQA onJy applies to projects that may have a significant effect on the
environment; and
B. Direct staff to develop a rent schedule with increased rates based on the Consumer Price
(all items) lndex to be presented at a future Vemon Housing Commission meeting.
Background
According to the City's Rental Housing Policy, as adopted by the Vemon Housing Commission
ffHC) on October 5, 2011, "all rents charged by the City of Vemon shall be based on a 'market'
valuation, as determined by multiple independent sources." However, the policy goes on to
acknowledge that "in setting a 'market' value, the VHC should remain sensitive to the unique
industrial and commercial character of the City of Vemon, including various environmental
realities that are inherent in the City of Vemon. The VHC should also remain sensitive to t}re
limited number of residential resources that the City of Vemon provides, as compared to other
locales. Finally, to the extent reasonably practicable, when setting a 'market' value for any
particular rental unit, an individualized assessment of the particular rental unit shall be taken into
account."
Page I of3
On March 9,2016, the VHC conducted a public hearing to consider a new preliminary Five-Year
Market Rent Schedule tbr all City-Owned Housing Units in the City of Vernon. At that time, staff
recommended an increase of 8.8% over the existing rents in an effort to bring the rents closer to
current market rents, as determined by recent appraisals. Those proposed rent increases were based
on past independent appraisal reports which considered a variety of thctors, the primary of which
was what has come to be known as the "Negative Location Impact" olresiding in Vemon. Said
simply, staff indicated that it would be appropriate to discount the rent based on the tact that the
City of Vemon did not have the traditional amenities that most communities have, such as parks,
grocery stores, and schools beyond the tifth grade.
During the public hearing, some tenants provided testimony indicating that proposed increases in
the rents were still too high, and did not fairly take into account a number of factors. Ultimately,
the VHC voted to create a Rent Subcommittee consisting of Commissioners Ybarra and Garcia to
examine the public's concems and to make a recommendation on how to address future rental rate
increases. The subcommittee met with staff on two occasions, and discussed each of the three
areas of concem, which could basically be categorized into three general areas:
l. Negative Location lmpacts: Some residents agreed with the results of the appraisal report
that there should be a "discount factor" tbr living in a non-traditional community like
Vemon, making rent comparisons to other communities ditlicult. This factor was addressed
in the recent appraisal studies.
2. Maintenance Concems: Some residents indicated that the rents should not be increased
until several of their outstanding maintenance concems were addressed, including pest
control concems. While many of the tenants' maintenance concems have been addressed,
some issues such as the need for new kitchen cabinets, have not yet been completely
addressed, as some tenants have expressed no interest in new cabinets since their unit is in
line tbr the City's Housing Remodel Project, and other tenants do not wish to be
inconvenienced so close to the holidays. The attached Unit Maintenance [mprovement
spreadsheet shows the status ofunit improvements in greater detail. Additionally, based on
staffs latest inspection of the housing stock, two units were tbund to have sustained
significant damages beyond normal wear and tear. Statf will present a recommendation
regarding pursuing tenant damages at a later time.
3. lmpact of the Exide Facilitv: Some residents indicated that the potential health impacts
from the lead in the air emissions of the recently-closed Exide battery recycling facility
and the unknown impacts to the residential properties in Vemon have not yet been fully
studied, and that more time was needed to determine the impacts. It was, and is still
believed, that it will take several years tbr the former Exide facility to be remediated. The
State, through its Department olToxic Substances Control, has been the lead agency, but
has not yet been able to completely identity all of the environmental impacts of the tbrmer
plant, and has indicated that more funding is needed to fully remediate the site and its
surroundings. Therefore, the impact on rents, both in Vemon and the surrounding areas, is
diflicult to quantiry at this time (even tbr real estate experts), as new information is
continuously being released.
Page 2 of 3
The Rent Subcommittee is recommending that the VHC implement a rent increase based on the
Consumer Price (all items) Index, or CPl. The VHC recogrizes that the rents need to be increased
to close the deticit between revenues and expenses. The CPI is a nationally recognized index used
to track inflation and is published by the U.S. Bureau of Labor Statistics to measure the change in
prices paid by consumers for a representative group ofproducts and services. As an example, the
percent increase of the all items CPI ttom August of20l5 to August of20l6 is l.l% (please see
attached sample rent schedule). However, there is no certain way of knowing what the CPI will
be next year. Considering there is a need to increase the rents over time to keep up with market
rates and elevate revenues to meet expenses while simultaneously adhering to tenant concems, the
subcommittee is recommending that the VHC adjust rental rates based on the (all items) CPI.
Utilizing, this well-established index would satisty the need to close the gap between existing rents
in Vemon versus nearby rental markets. This would provide the City with more time to address
some of the outstanding issues related to bringing the rent closer to market rates.
If the Commission ultimately supports this recommendation, then each tenant would be given the
opportunity to sign a new lease agreement, or be given at least 60 days to vacate the
premises. According to the City's Housing Policy, all new leases shall be for a term ofone year,
and renewals ofleases shall be for a term no longer than one year, without limitation on the number
ofrenewals, so long as a leasee is in good standing.
The subcommittee further recommends that the monthly rents continue to be adjusted by the
Commission based on the CPI on an annual basis. If the Commission supports this
recommendation, statT would develop a rent schedule accordingly and proceed with a public
hearing at its next meeting notifying all tenants ofthe proposed rent increase.
Fiscal Impact
Based solely on the August 2015 to August 2016 (all items) CPI of l.lVo, the estimated, annual
revenue in rental income for all housing would be $3 19,714 at full occupancy, not accounting for
any vacancies or loss of revenue during tumover. The (all items) CPI is subject to change year
over year and the percentage ofany proposed rental adjustments will fluctuate accordingly.
Attachments
I . August 20 I 5 - August 201 6 Consumer Price Index Sample Rent Schedule
2. Unit Maintenance Improvements
Page 3 of 3
August 2015 - August 2016 Consumer Price Index Sample Rent Schedule
Unlt Unlt lypc B.thj lncr.... glll2ols
by r.lo,b CPI R.nt
S.mpla R.nt
B.rcd on CPt (All lt.m.)
3345 Frurtlaod 3bd-house 2 l. 19o 1,164.00 12 804 1,176.80
3349 Frurtland 2bd-house 1 l.lo/o 968.00 10.648 978.6s
3353 Fruitland 3bd-house I 1. Lo/o 1,114.00 72.254 I,t26.25
3357 Fruitland 3bd-house I 1. r%1,114.00 72.254 I,t26.25
3361 Frurtland 3bd-house 1 l.lo/o 1,043.00 11,.473 L,O54.41
3365 Frurtland 2bd-house 1 l.lo/o 914.00 10.054 924.05
0.00
3376 E. 50th 2bd-apt 2 L.lo/o 839.00 9.229 848.23
3378 E.50rh 2bd-apt 1 l.lo/o 839.00 9.229 848.23
3380 E. 50th lbd-a pt 1 l. I o/o 696.00 7.656 703.66
3382 E.50th 1M-a pt 1 L.lo/o 696.00 7 656 703.66
3384 E. 50rh lbd-a pt 1 l.1o/o 696.00 1.656 703.66
3386 E.50th 1bd-a pt 1 l.lo/o 696.00 1 .656 703.66
3388 E, 50rh 2bd-apt 1 l.lo/o 839.00 9.229 848.23
3190 E. 50rh 2bd-apt 1 L.1o/o 839.00 9.229 848.23
000
3550 Vernon 3bd-house 1 L.lo/o 1,114.00 72.254 t,t26.25
3560 Vernon 2bd-house 1 l.lo/o 985.00 10.835 995.84
4321 Furlonq 3bd-house 1 l.lo/o r,000.00 11 1,011.00
4322 Furlonq 3bd-house 1 l. Lo/o r,071.00 11.781 1,082.78
4323 Furlonq 2bd-house 1 l.1olo 854.00 9.394 863.39
4324 F\rrlonq 2bd-house 1 l.lolo 854.00 9.394 863.39
4325 Furlonq 2bd-house 1 1. 19o 854.00 9.394 863.39
4326 Furlonq 2bd-house 1 1. 19o 925.00 10.175 93 5.18
4327 Furlonq 2bd-house 1 r. 1%925.00 10.175 93 5.18
4328 Furlonq 2bd-house 1 l.lo/o 854.00 9.394 863.39
4329 Furlonq 3bd house 1 L.lo/o 1,071..00 71,.781 1,082.78
4330 Furlonq 3bd-house 1 L.lo/o 1,089.00 11.979 1,100.98
0.00
6010 Oak #B HP 2bd-cond r.ro/o 1,200.00 L3.2 7,2L3.20
29r5 E. 50th #S HP 2bd-cond 2.5 r. 1olo 1,100.00 L2.r 1,112.10
TOTAI
ANNUAL REVEI{UE
26,353.00
3r6,236.OO
26,642.44
319,714.60
289.88
3,474.60
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