4-24-08

HOUSING AUTHORITY OF THE CITY AND COUNTY OF SAN FRANCISCO Minutes of Commission Meeting Thursday, April 24, 2008

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 24, 2008, at 4:00 p.m.

Vice President Gans called the meeting to order at 4:10 p.m.

1.

ROLL CALL PRESENT:

Neola Gans, Vice President George R. Brown, Commissioner Dwayne Jones, Commissioner Millard Larkin II, Commissioner Matthew Schwartz, Commissioner

NOT PRESENT:

Rev. Amos Brown, President (excused) Jane Hsu, Commissioner (excused)

A quorum was present.

ALSO PRESENT:

2.

Ms. Mirian Saez, Interim Executive Director Mr. Tim Larsen, Assistant General Counsel

APPROVAL OF AGENDA

Commissioner Larkin moved to approve the Agenda with one correction. Under Item 10C it should read “PAINT” instead of “PAIN”. Commissioner Jones seconded the motion and this request was approved unanimously.

3.

GENERAL COMMUNICATIONS

Ms. Saez informed the Commissioners of the letter from Fred Blackwell, Director of the San Francisco Redevelopment Agency stating his agencies interest in purchasing one of SFHA’s surplus properties. She also informed the Commissioners that they can find a letter from the plumbers union giving us notice that the collective bargaining agreement expires June 30 and that they will start to re-bargain. She also informed the Commission that two other union contracts, carpenters and electricians, were also to expire on June 30.

April 24, 2008 FINAL MIN

Commission Meeting Minutes April 24, 2008 Page 2 Ms. Saez went on to inform the Commissioners of a memo describing the definition of a ground lease and how the agency applied the use of ground leases to recent Hope IV sites. Ms. Saez then went on to state that she posted her first directive instructing staff and the Commission that exterior lighting should be treated as an emergency and shall be repaired within 24 hours. Lastly, Ms. Saez reported to the Commission that staff is looking to update the PHA Plan for the next fiscal year and she directed the Commission to a report regarding that in their packages.

Commissioner G. Brown wanted to know if exterior lighting was referring to all the public housing sites. Ms. Saez informed him that all the developments have exterior lighting that are to be treated as an emergency and are to be immediately repaired.

4.

REPORT OF SECRETARY Ms. Saez informed the Commission that they can find information on the PHA Plan for the next fiscal year. She reported that 800 Section 8 residents attended a meeting on the proposed changes to the program and 65 public housing residents attended an earlier meeting. Community partners were also engaged.

Ms. Saez requested that the Commissioners view the photos of the completed fire repair units at 951 Eddy Street. She stated that the units are lovely additions to our portfolio and that there were also photos of the six newly constructed disability units at Ping Yuen.

Ms. Saez then went on to inform the Commissioners that the Eligibility Department had reduced the Section 8 waitlist to 14, 500 from 26,000 names. The public Housing list was also reduced from 30,000 to 22,000 names on the list. This purging of both lists will greatly improve our ability to refer people to housing.

Ms. Saez introduced the Commissioners to two new appointments: Kyle Pederson, Interagency Liaison and Gloria Chen, Public Information Officer. She informed the Commissioners that Human Resource Administrator Cynthia Black submitted her resignation and she commended her all her contributions and services to the Authority. She also informed the Commissioners that Tim Larsen, Assistant General Counsel received a Certificate of Honor from Mayor Gavin Newsom for his outstanding service building partnerships between the community and the San Francisco Police Department.

In an effort to keep the Commission updated, Ms. Saez reported that the Transition Team is working to improve vacancy reduction rate and to date, 200 public housing units have been put back on line for leasing with a goal of 300 units by June 30. The Transition Team also includes a member from the Department of Environment and in addition to working on improving garbage collection and introducing recycling at Sunnydale, the offices at 440 Turk will also implement a recycling program. Ms. Saez extended her thanks to Rene Latosa for coordinating this effort.

Ms. Saez informed the Commission that there were 116 families engaged in the RAP program or current in their rent. She stated that 9 have enrolled in the RAP program. She wanted to clarify that all evictions for rent in Hunters View were ceased but that the Authority was still actively

Commission Meeting Minutes April 24, 2008 Page 3 pursuing all Cause cases. She informed the Commissioners that in conjunction with the roll out of the RAP program, those not paying rent will receive a 14-Day Notice for non-payment of rent along with information on how to get back on track with RAP. Ms. Saez went on to inform the Commissioners that there was a report in the April 24 newspaper stating the agencies plans to resolve the outstanding judgments. While the described plan is straightforward, Ms. Saez wanted to emphasize that there are approvals to be had prior to any dispositions, including HUD approvals and our partners in the Redevelopment Agency and their Commission. We will meet our first milestone of the plan by submitting our first three applications to HUD. Ms. Saez discussed scheduling a Diversity Committee Meeting for Thursday May 1 and she informed the Commission that the next regularly scheduled meeting is on Thursday May 8.

Commissioner Larkin requested clarification on the current eviction status as it pertains to the RAP program. Ms. Saez informed him that evictions for non-payment of rent in Hunters View were stopped in January but that Cause evictions were still active.

This concluded the Secretary’s Report.

5. COMMITTEE REPORTS Diversity Committee No report.

Finance Committee Report of April 18, 2008 Meeting.

Commissioner G. Brown reported on the Finance Committee Meeting stating that the items reviewed during the meeting included the hiring freeze, overtime, elimination of acting positions, temporary term and full time positions and security services. He stated that they also discussed the South Hills Ground Lease Assignment and Assumption.

Ms. Saez informed the Commission that the purpose of reviewing the Human Resources issues and security was to give an overview of areas where we can reduce cost and adjust savings. She clarified that no action was taken on these items.

Personnel Committee No report.

Development Committee No report.

6.

REPORT OF GENERAL COUNSEL

Commission Meeting Minutes April 24, 2008 Page 4 Mr. Tim Larsen, Assistant General Counsel, stated that there would be a Closed Session to discuss pending litigation and personal matters. He also informed the Commissioners that they can find the Litigation Report and the Shooting Incident Report in the binder.

Commissioner G. Brown pointed out the Shooting Report has gone down and Mr. Larsen confirmed and stated that Agency and the SFPD has been taking aggressive steps towards reducing violence on our developments.

7.

TENANT REPRESENTATIVE REPORT

City Wide Council - Senior/Disabled No report.

Public Housing Tenants Association (PHTA) No report.

8.

PUBLIC COMMENTS ON AGENDA ITEMS: LIMITED TO 2 MINUTES NOTE: The public will have the opportunity to comment on agenda items prior to any action taken by the Commission pursuant to the San Francisco Housing Authority Rules Governing Public Testimony adopted 2/23/95 as Resolution No. 4423. Prior to adjournment, after Item No. 11, the public will have the opportunity to comment on items not on the agenda.

There were no public comments on agenda items.

9.

11.

UNFINISHED BUSINESS None NEW BUSINESS

A. CONSENT AGENDA 1) APPROVAL OF MINUTES FOR MEETING OF APRIL 10, 2008

2) RESOLUTION AUTHORIZING THE INTERIM EXECUTIVE DIRECTOR TO ENTER INTO TWO SEPARATE TWO-YEAR CONTRACTS FOR $100,000 EACH, ONE WITH MECHANICAL SOLUTIONS, AND ONE WITH MHC ENGINEERS, FOR MECHANICAL ENGINEERING SERVICES ON AN ASNEEDED, TAKS ASSIGNMENT BASIS FOR ALL DEVELOPMENTS IN A TOTAL AMOUNT NOT-TO-EXCEED $200,000 FOR THE TWO CONTRACTS.

Commission Meeting Minutes April 24, 2008 Page 5 Commissioner G. Brown moved to approve the minutes for the April 10, 2008 Commissioner Meeting and Commissioner Jones seconded the request. This request was passed unanimously. Commissioner Jones then moved to approve Item A2 on the agenda.

Commissioner Larkin seconded the motion and the request was passed unanimously.

B) RESOLUTION AUTHORIZING THE INTERIM EXECUTIVE DIRECTOR TO SUBMIT DEVELOPMENT PROPOSALS TO THE U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT FOR REPLACEMENT HOUSING FACTOR FUNDS FOR CONSTRUCTION OF UP TO TWELVE NEW UNITS OF PUBLIC HOUSING AT HUNTERS VIEW: (1) $675,911 OF FIRST INCREMENT FUNDING FOR FY 2006 AND 2007; AND (2) APPROXIMATELY $1,500,000 OF SECOND INCREMENT FUNDING FOR FY 2008 THROUGH 2012 Mirian Saez introduced Barbara Smith to elaborate on this agenda item. Barbara Smith then introduced Dominica Henderson, Management Analyst to present the proposals.

Ms. Henderson explained that this Resolution if approved would allow the Interim Executive Director to submit two development proposals for the replacement housing factor grant from HUD. She explained that these funds are available in 5-year increments.

We used three of the years to replace the developments at Ping Yuen and we are eligible for 2 additional years. An analysis was performed and it was determined that the increments should be combined for the Hunters View development proposal since Hunters View is the pilot site for Hope SF. She explained that the funds come from the Capitol Fund Grant given to the Authority from HUD but the funds are only for the development of new public housing units.

Commissioner Jones wanted to know the total number of funds available under this Grant and Ms. Henderson informed him that the estimated total of 2.1 million dollars and we can approximate that those funds can be used over a maximum of 4 units.

Commissioner Larkin wanted to know if there were plans to start training people so when these jobs are available they can be ready. Ms. Henderson informed the Commission that are currently working on a comprehensive training program for the residents.

Commissioner G .Brown moved to approve this Resolution with Commissioner Schwartz seconding the motion. This resolution was passed unanimously.

C) RESOLUTION AUTHORIZING THE EXECUTIVE DIRECTOR TO ENTER INTO A CONTRACT WITH BAYVIEW PAINTING & CONSTRUCTION FOR EXTERIOR PAIN STABILIZATION, BUILDING AND SITE REPAIRS AT CAL 1-9, WESTBROOK APARTMENTS HOUSING DEVELOPMENT, IN AN AMOUNT NOTTO-EXCEED $844,000.00

Commission Meeting Minutes April 24, 2008 Page 6 Ms. Saez stated that she brought this Resolution forward for two reasons; 1) it involves a property we are looking to redevelop and 2) because of the financial threshold. With that she introduced Barbara Smith.

Ms. Smith explained that this Resolution allows us to continue to maintain the property and keep it safe for residents through paint stabilization, weather proofing, making the building envelope water tight, repairing dry rot and other areas that could provide hazards to residents. This Resolution also includes other work including bird proofing, retaining wall repair, exterior lighting replacement and chain link fence replacement.

Five bids were received and Bayview Painting was the low bidder. They have done previous work for the Authority and they take our goals of resident hiring very seriously and intend to reach the MBE/ WBE goals.

Commissioner Jones motioned to approve the resolution with Commissioner Schwartz seconding the motion. This Resolution was approved unanimously.

D) RESOLUTION AUTHORIZING THE INTERIM EXECUTIVE DIRECTOR TO EXECUTE THE ASSIGNMENT AND ASSUMPTION AGREEMENT AND THE THIRD AMENDMENT TO GROUND LEASE TO PROVIDE HOUSING FOR LOW AND MODERATE INCOME HOUSING (REARDON HEIGHTS APARTMENTS) AMONG THE HOUSING AUTHORITY OF THE CITY AND COUNTY OF SAN FRANCISCO, ASPEN SOUTH HILLS APARTMENT COMPANY AND REARDON HEIGHTS ASSOCIATES, L.P., IN CONNECTION WITH THE PAYMENT OF CERTAIN LEASE PAYMENTS AND THE REHABILATION OF THE PROPERTY LOCATED AT 50 REARDON HEIGHTS, SAN FRANCSICO, CALIFORNIA Ms. Saez informed the Commission that this Resolution was discussed previously and was recommended by the Finance Committee. She informed the Commissioners that a revised Resolution was presented to them and that Barbara Smith and SFHA legal counsel, Diane McClain would be presenting.

Ms. Smith informed the Commission that the Resolution is for a three-year extension as well as a Assignment and Assumption. She explained that the developer agreed to pay the Authority approximately $300,000 with an upfront fee of $100,000 at closing and payments over 15 years for the present value balance. The developer has also agreed to pay the Authority for its legal fees related to the transaction.

Ms. McClain explained that Commissioner Schwartz had questions he wanted addressed and she informed them that the answers could be found in a memo from the developer in the Commission package. Ms. McClain went on to explain that there will be a Right of First Refusal instead of a Right to Purchase at the end of the lease term.

Commission Meeting Minutes April 24, 2008 Page 7 Commissioner Jones wanted to know how long it would take to figure out the role of Illuminous. Ms. MClain explained that the organization has State clearance and could qualify for the tax exemption. Commission Jones also wanted clarification on the commitment to the Boys & Girls Club and Ms. Saez informed him that there was $10,000 per year appropriated for the Boys & Girls Club.

Commissioner Larkin wanted to make sure the development team was satisfied with the outcome of the agreement and he wanted to make sure that rents would not be increased.

Steve Matune, representing the developers, informed Commissioner Larkin that they were satisfied and that rents would not be increased. Mr. Matune also informed Commissioner Larkin that all paperwork would be provided prior to closing.

Commissioner Schwartz questioned the payments over time and wanted to make sure that the payments weren’t contingent payments based on surplus cash. Ms. McClain informed him that the agreement states the payment schedule will be attached to the assignment agreement leaving no room for misunderstanding and that the Authority would be able to take legal recourse if a payment was missed. Commissioner Schwartz then went on to make sure that the agreement including language stating that the general partner does not have the right to exercise control over the property.

Commissioner G. Brown wanted to know the estimated date of the improvements on the units described in the memo and Mr. Matune informed him that the improvements would start on June 3.

Commissioner Larkin motioned to approve this Resolution with Commissioner Jones seconding the motion. This resolution was approved unanimously.

E) INFORMATIONAL PRESENTATION: HOPE SF ACADEMY Ms. Saez introduced Joyce Armstrong, Management Analyst, to present on the Hope SF Academy. Ms. Armstrong informed Commissioners that the Academy was for enlightenment of the residents and that the goal of the Academy is to have a leadership training academy. It involves residents from seven of the Hope SF sites and it gives them empowerment and education on redevelopment and revitalization. The Academy gives the residents information that they can bring back to other residents in the community.

Ms. Armstrong went on the explain that this is a pilot program and that all the Commissioners questions and concerns regarding faculty, internships, stipends and increasing capacity would be taken back and considered when making improvements to the Academy.

12.

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

Commission Meeting Minutes April 24, 2008 Page 8

13.

COMMISSIONER COMMENTS AND REPORTS Commissioner Schwartz wanted to make sure that the resident participation in the PHA Plan process would be increased. Ms. Saez informed him that the Belinda Jeffries, Administrator of Office of Fair Housing and Resident Services, is working diligently on increasing that number. He also wanted to make sure that more residents were included in the RAP program and Ms. Saez informed him that once the 14-Day notices are received with the information on the RAP program more residents would probably come aboard.

14.

CLOSED SESSION A Closed Session was scheduled with the Interim Executive Director and Agency Counsel under Government Code Section 54956.9 to update the Commission on pending litigation. The Commission went into Closed Session at 5:34 p.m.

15.

RECONVENING OF COMMISSION MEETING The Commission reconvened from Closed Session at 6:25p.m. Mr. Larsen stated that Vice President Gans, Commissioner Jones, Commissioner Schwartz, Commissioner Larkin and Commissioner G. Brown were present. The Commission made no decision during closed session.

16.

ADJOURNMENT There being no further business to come before the Commissioner Schwartz moved to adjourn the meeting. Commissioner Larkin seconded the motion. Vice President Gans adjourned the Commission Meeting of April 24, 2008, at 6:25p.m.

Mirian Saez, Secretary/ Interim Executive Director

Neola Gans, Vice President