4/09/2009

HOUSING AUTHORITY OF THE CITY AND COUNTY OF SAN FRANCISCO Minutes of Commission Meeting Thursday, April 09, 2009

440 Turk Street San Francisco, California

A Regular meeting of the Housing Authority Commission of the City and County of San Francisco met at 440 Turk Street, San Francisco, California, on Thursday, April 09, 2009, at 4:00 p.m.

President A. Brown called the meeting to order at 4:01 p.m.

1. ROLL CALL PRESENT:

Rev. Amos Brown, President Neola Gans, Vice President George R. Brown, Commissioner (arrived at 4:15pm) Millard Larkin, Commissioner Jane Hsu, Commissioner

NOT PRESENT:

Matthew Schwartz, Commissioner Dwayne Jones, Commissioner

A quorum was present.

ALSO PRESENT: 2.

Mr. Henry A. Alvarez III, Executive Director Mr. Roger Crawford, Assistant General Counsel

APPROVAL OF AGENDA Vice President Gans motioned to approve the agenda. Commissioner Larkin seconded the motion. This Request was approved unanimously.

3.

GENERAL COMMUNICATIONS/ REPORT OF SECRETARY Henry Alvarez, Executive Director combined the General Communications and the Secretary’s Report by reporting that on Wednesday April 08, SFHA delivered the final payment on the judgment matter and that we should expect a release by close of business on Friday.

4.

COMMITTEE REPORTS

Commission Meeting Minutes April 09, 2009 Page 2 Commissioner Larkin reported that there was a Personnel Committee Meeting on April 2, 2009. They discussed the hiring of a Director of Information Technology, Director of Finance and the Director of Intergovernmental Affairs.

5.

REPORT OF GENERAL COUNSEL Roger Crawford informed the Commission that there was a Closed Session to discuss personnel issues, pending litigation and labor negotiations.

6.

TENANT REPRESENTATIVE REPORT Mr. William Vitale, Citywide Counsel/ Senior Disabled reported on several issues including elections and resident participation funds.

Kimberly Hill-Brown, President of the Tenants Association, informed the Commissioners of several items including wanting an update on the status of requests made to the Commissioners, Community Events at Westside Courts, Resident Council Meetings with SFHA staff and financial matters.

7.

PUBLIC COMMENT ON AGENDA ITEMS There were no public comments on agenda items.

8.

UNFINISHED BUSINESS There was no unfinished business.

9.

NEW BUSINESS

A) CONSENT AGENDA 1) APPROVAL OF MINUTES FOR MEETING OF FEBRUARY 12, 2009 2)

APPROVAL OF MINUTES FOR MEETING OF FEBRUARY 26, 2009

Commissioner Larkin moved to approve the Consent Agenda. Vice President Gans seconded the motion. The Consent Agenda was approved unanimously.

B) ACTION ITEMS 1) INFORMATIONAL PRESENTATION- CARLETON COMPANIES

Prentice Gary represented the Carleton Company. He introduced himself to the Commissioners and proceeded to give an overview of their company and the services, principals and the financial strength of the company.

Commission Meeting Minutes April 09, 2009 Page 3 2) RESOLUTION AUTHORIZING THE EXECUTIVE DIRECTOR TO EXECUTE AN AMENDMENT TO CONTRACT #70007 WITH GOLDFARB & LIPMAN, LLP TO PRIVIDE REAL ESTATE LEGAL COUNSEL SERVICES ON AN AS-NEEDED, TASK-ASSIGNMENT BASIS FOR ALL DEVELOPMENTS IN AN AMOUNT NOT TO EXCEED $100,000 FOR A TOTAL AMOUNT OF $345,000

Barbara Smith, Administrator of Housing Development and Modernization presented this Resolution. The San Francisco Housing Authority (SFHA) uses outside professional legal services for complex real estate transactions, other issues related to housing development, modernization, disposition of property, tax credit partnerships, affiliate housing corporations, outside opinions of counsel, and operational issues as they arise. Contract #70007 with Goldfarb & Lipman, LLP (Goldfarb) will not expire until February 6, 2011, however, the current contract amount, $245,000 has been nearly exhausted during the past 26 months.

Task assignment services completed recently include: Prepare Exclusive Negotiating Rights Agreements (ENRAs) and resolutions for Hunters View, Sunnydale, Potrero Terrace and Annex, and Westside Courts, Prepare amendments to the ENRA for Hunters View,Prepare Option to Ground Lease for Rosa Parks II for $2 M Option Payment, Prepare Ground Lease Agreement for the Rosa Parks II project for $2.959 M payment, Negotiate and review City documents, prepare Partial Release of Declaration of Trust for project and obtain HUD’s approval, Negotiate and review developer documents. Close transaction, Negotiate property tax exemption for Rosa Parks II ground lease property for period of time between transfer to CHC and construction of property tax exempt affordable housing, determine NEPA and CEQA environmental requirements for Rosa Parks and Hunters View projects, Review and comment on Hunters View Relocation Plan, advise on federal and state relocation requirements, documentation and notifications to residents of revitalized sites, prepare and negotiate Master Development Agreement for Hunters View project etc.

Upcoming task assignment services will include: Preparation of Hunters View Predevelopment Loan Agreement for SFHA funds ($6 M Capital Fund Stimulus, $1.03 M Replacement Housing Factor, and $1.06 Neighborhood Initiative Grant), Preparation of Development and Disposition Agreement, Ground Lease, Right of First Refusal, Option to Purchase, Regulatory and Operating Agreement and all related closing documents for Hunters View Phase 1, Review of Energy Services Contract Agreements, Review of proposed partnership agreements for leveraged financing proposals for Competitive Stimulus funding, other potential task assignment include interpret existing contracts, agreements, and HUD Regulations and negotiate documents initiated by the Authority, the developer, the investor, or HUD. The Authority selected these professional services by the competitive proposal method in the form of a Request for Proposals (RFP), except for architects and engineers requiring selection on the basis of qualifications. The Authority has

Commission Meeting Minutes April 09, 2009 Page 4 selected the Real Estate Counsel based on both Price (proposed fees) and the Technical Factors described in the Evaluation Criteria. Goldfarb & Lipman supports the SFHA’s efforts to include a resident-hiring component in its professional service contracts. The firm has successfully hired SFHA residents under previous contracts and intends to do so again if the Commission authorizes this amendment. While most of the firm’s positions require legal or other specialized training, its commitment in this area is demonstrated by the fact that in 2002, it hired a SFHA resident as a temporary office services clerk and within three months Goldfarb & Lipman was pleased to hire her as a permanent employee when an office services position unexpectedly became available. Goldfarb & Lipman is committed to using its best efforts to create a similar opportunity for another resident.

Commissioner Brown motioned to approve the Resolution. Vice President Gans seconded the motion. This Resolution was approved unanimously.

3) RESOLUTION AMENDING THE AUTHORITY’S PROCUREMENT POLICY TO INCORPORATE AS SECTION XII THE U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT PROCUREMENT PROCEDURES FOR PROCESSING AMERICAN RECOVERY AND REINVESTMENT ACT CAPITAL FUNDS Barbara Smith, Administrator of Housing Development and Modernization presented this Resolution. The U.S. Department of Housing and Urban Development (HUD)

made available $17,876,716 in American Recovery and Reinvestment Act (ARRA) Capital Fund Program funding to the Authority. On March 18, 2009, HUD issued PIH NOTICE 2009-12 (HA) that provides information and procedures for processing these grant funds. One of the requirements is that PHAs shall amend their procurement standards and policies as necessary in order to expedite and facilitate use of the funds. In order to comply with these requirements, the San Francisco Housing Authority Procurement Policy is being amended to add Section XII Capital Fund Stimulus Grant Procurement Policy.

The following provisions of the Capital Fund Stimulus Grant Procurement Policy are in addition to the SFHA’s existing Procurement Policy: Priority shall be given to projects that can award contracts based on bids within 120 days from February 17, 2009, requirements relating to the procurement of goods and services arising under state and local laws and regulations shall not apply, all procurement standards that are contrary to Part 85 or the Recovery Act shall be removed from this procurement process, PHAs may insert their own procedures provided that they are not contrary to the purposes of the Recovery act such as: protest procedures, written codes of standards for employees engaged in the award and administration of contracts, shorter bid periods than the typical 30 day period, PHAs shall continue to follow all Part 85 requirements regarding conflicts of interest, contract cost and price, if solicitation of a proposal is only from one source or if the PHA finds that after solicitation of a number of sources, that competition is inadequate, the PHA may award the contract noncompetitively

Commission Meeting Minutes April 09, 2009 Page 5 where small purchase procedures, sealed bids or competitive proposals are infeasible if one of the circumstances in Part 85 applies such as public exigency that will not permit a delay resulting from competitive solicitation, to the extent feasible, the PHA should consider employing existing or additional force account workers to perform Capital Fund Stimulus Grant work, PHAs shall follow Buy American requirements of Section 1605 of the Recovery Act and use only iron, steel and manufactured goods produced in the United States in their projects.

Commissioner Larkin wanted to know if the new procurement policy enabled us to put projects back out for bids if there were an insignificant number of bids received. Ms. Smith informed him that we could do this as long as we met the project deadline.

Commissioner Brown wanted to know if these new policies affected the Commissioners decision making requirements directly. Ms. Smith informed him that the $50,000 threshold will remain and that all contracts over the threshold will still require Commission approval.

Vice President Gans motioned to approve this Resolution. Commissioner Brown seconded the motion. This Resolution was approved unanimously.

4) RESOLUTION AUTHORIZING THE EXECUTIVE DIRECTOR TO ENTER INTO CONTRACTS WITH VARIOUS SECURITY FIRMS TO PROVIDE ARMED, UNARMED, FIXED POST AND ROVING SECURITY AT CERTAIN HOUSING AUTHORITY FAMILY AND SENIOR PROPERTIES IN AN AMOUNT NOT TO EXCEED $2,201,100 DOLLARS PER YEAR FOR TWO YEARS. James Ferry, Security Coordinator presented this Resolution. The San Francisco

Housing Authority (“SFHA”) has had private security at various family and senior sites. Private security supplements regular police services and provides the SFHA with an additional level of security at its developments. This resolution will authorize the Executive Director to negotiate and enter into agreements with various private security companies for services at certain developments.

Solicitation No. 09-510-RFP-001 was issued on October 21, 2008. Announcement of the RFP was placed on the San Francisco City Purchasing Department, San Francisco Housing Authority website, and e-bidboard. Announcements and RFP packets were mailed directly to eighteen (18) prospective professionals firms. A pre-proposal conference and site visit was held October 29, 2008 for those interested.

The award of these new contracts will allow the SFHA to continue security guard services at various family sites and senior buildings. As in the past, we are recommending awards to multiple firms, in this case, four (4) firms. The awards do not guarantee any level of business. The companies recommended are: W.S.B. & Associates, A-1 Protective Services, McCoy’s Security, and Cypress Security.

Commission Meeting Minutes April 09, 2009 Page 6 Funding is available for security services through the Low Income Program, Section 8 Program and Capital Fund Program. All firms are committed to hiring residents. Both W.S.B. & Associates and A-1 Protective services have hired residents in the past. WSB & Associates is a Minority Business Enterprise. A1 Protective Services is a Minority and Women’s Business Enterprise.

Commissioner Brown wanted clarification on the criteria for evaluating the performance of the security services. Mr. Ferry informed the Commission that SFHA is very pro-active and has a direct relationship with each firm’s top level executives. The firms are very responsive and action is usually taken as soon as a discrepancy is discovered. Commissioner Brown requested clarification on whether all the firms were armed. Mr. Ferry informed the Commission that three of the four firms provided armed services.

Commissioner Larkin requested statistics on the reduction in the crime on SFHA properties and Mr. Ferry informed the Commissioners that he would provide them with that information at a later meeting.

Commissioner Brown motioned to approve this Resolution. Commissioner Larkin seconded the request. This Resolution was approved unanimously.

10.

PUBLIC COMMENTS ON ITEMS NOT ON THE AGENDA There were no public comments on items not on the agenda.

11.

COMMISSIONERS COMMENTS AND REPORTS There were no Commissioner Comments.

12.

CLOSED SESSION A Closed Session was scheduled with the Executive Director and Agency Counsel under Government Code Section 54957(b)(1), 54956.9, 54957.6 to update the Commission on personnel issues, pending litigation and labor negotiations. The Commission went into Closed Session at 5:00 p.m.

13.

RECONVENING OF COMMISSION MEETING The Commission reconvened from Closed Session at 5:25 pm. Mr. Crawford stated that President A. Brown, Vice President Gans, Commissioner Larkin, Commissioner Brown and Commissioner Hsu were present. No decisions were made.

14.

ADJOURNMENT There being no further business to come before the Commission, Commissioner Brown moved to adjourn the meeting. Commissioners Larkin seconded the motion. President Brown adjourned the Commission Meeting of April 09, 2009, at 5:26 p.m.

Commission Meeting Minutes April 09, 2009 Page 7

Henry A. Alvarez III, Secretary/ Executive Director

Rev. Amos Brown, President