5-8-08

HOUSING AUTHORITY OF THE CITY AND COUNTY OF SAN FRANCISCO Minutes of Commission Meeting Thursday, May 08, 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, May 08, 2008, at 4:00 p.m.

President A. Brown called the meeting to order at 4:05 p.m.

1.

ROLL CALL PRESENT:

Rev. Amos Brown, President Neola Gans, Vice President George R. Brown, Commissioner Jane Hsu, Commissioner Dwayne Jones, Commissioner (arrived at 4:12) Millard Larkin II, Commissioner Matthew Schwartz, Commissioner

NOT PRESENT: A quorum was present.

ALSO PRESENT:

2.

Ms. Mirian Saez, Interim Executive Director Mr. Roger Crawford, Assistant General Counsel

APPROVAL OF AGENDA

Vice President Gans moved to approve the Agenda and Commissioner Larkin seconded the motion. This request was approved unanimously.

3.

GENERAL COMMUNICATIONS

Ms. Saez informed the Commissioners of the letter from Goldfarb & Lipman. This letter is in response to a request for information regarding the Brown Act. The letter will help guide our discussions for better decision making.

Ms. Saez informed the Commissioners that on the Commission Meeting of April 24 they were provided with a handbook from NAHRO (National Association of Housing and Redevelopment Officials). The handbook is helpful in furthering the Commissioners understanding of their roles in policy making.

May 08, 2008 FINAL MIN

Commission Meeting Minutes May 08, 2008 Page 2

Ms. Saez made reference to the annual reports from the Housing Authority of Oakland and the Housing Authority of Los Angeles that were provided to the Commissioners as well.

4.

REPORT OF SECRETARY

Ms. Saez directed the Commissioners to the documentation of our submittal to HUD regarding disposition of Coleridge, Thrift and Alice Griffith parking lot. HUD has up to ninety (90) days to approve our application and amendment.

Ms. Saez reviewed the memo from Section 8 Director Tony Ucciferri regarding the status of an RFP that was issued to interested parties for the participation in a Project Based Section 8 program. Sixteen applications were received. Nine were from existing participants and five were new applicants for a total of 814 units. We are now in the process of scoring and formal awards are not anticipated for several months. The process and criteria include a site and neighborhood review and an environmental review.

In an effort to keep the Commissioners informed about Operations, Ms. Saez reported that the Eligibility Department is now conducting Lease Fairs at Sunnydale and Potrero with some notable success. Thirty six families are scheduled to move into 95 units that are ready for occupancy.

With regards to staffing, Ms. Saez informed the Commission that she has contracted on an asneeded basis with Mr. Charles Francis. Mr. Francis worked for the Authority for two years and developed the Asset Management Plan for the agency. Deputy Director Naja Boyd gave notice that she will continue to be on medical leave until June 1.

Ms. Saez informed the Commissioners that staff is organizing a Commissioner Workshop and more information is forthcoming. She then went on to inform the Commissioners that the independent audit is almost over and that the auditors are requesting copies of the Commissioner’s resumes.

Ms. Saez stated that we have begun the development of the 2009 Annual Operating Budget.

Unlike years before, Ms. Saez has asked the staff to utilize zero-based budgeting as a model and develop a budget from the ground up; setting forth goals for the department, creating performance standards aligning the position descriptions and justifying all staff according to tasks. Budget preparation workshops have been conducted with AMP managers and by the month’s end, budget packages are to be delivered to the finance department for review. There will then be a series of budget round tables that will review positions and then the information will be brought to the Finance Committee.

Ms. Saez informed the Commission that the Transition Team was working to improve the vacancy rate. To date, crews are placing back into the leasing pipeline approximately 5 units per

Commission Meeting Minutes May 08, 2008 Page 3 week. The goal is 300 units and we believe we will be there by June 30. The Team inspected units at Potrero and was able to see three phases of the unit turnover; the exit by the tenant, the work in progress by the staff and the finished product. Ms. Saez praised the Force Account crew for their work in getting the units habitable.

Lastly, Ms. Saez reported on the Rental Assistance Program (RAP) in Hunters View. Of the 159 occupied units, 73 families are current in their rent obligations and 36 families have signed up for the service. Twenty-six families are engaged but have not entered into the program and the other eleven families who have not engaged have received 14-Day Notices to Pay or Quit. Along with the Notice the families received information about getting back on track with the RAP program.

Ms. Saez informed the Commission that the next regularly scheduled meeting is Thursday, May 22. She also informed the Commissioners that she planned on taking four days of vacation May 27-30.

Commissioner Brown wanted to know when Mr. Francis would be starting his position and Ms. Saez informed him that the hope was to bring him in within the next two weeks in conjunction with several HUD reviews dealing with the AMP Management report and Mr. Perlas’s taking vacation. Commissioner Brown also requested a written report on the unoccupied units available to lease.

Commissioner Larkin reported that he met first hand with members at Hunters View involved in the RAP program. He wanted to express his happiness in the success and awareness of the program.

During this time, President Brown went on to request a motion to approve the Minutes of the April 24, 2008 Meeting. Commissioner Brown moved to approve the Minutes. Commissioner Schwartz seconded the motion with two corrections. Commissioner Schwartz brought the Commissions attention to Page 7 third paragraph. He clarified that he actually stated that the agreement should include language stating that the general partner does not assign its right of first refusal so that our second right of first refusal wouldn’t be impaired. He also corrected the last page of the minutes of the April 24 Meeting stating that his comment regarding encouraging participants in the PHA planning was specifically directed to public housing residents because there was a disparity between the participation of the voucher holders and the public housing residents.

This concluded the Secretary’s Report.

5. COMMITTEE REPORTS Diversity Committee No report.

Commission Meeting Minutes May 08, 2008 Page 4 Finance Committee No report.

Personnel Committee No report.

Development Committee No report.

6.

REPORT OF GENERAL COUNSEL

Mr. Roger Crawford, 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 wanted to know why the majority of the shootings are in the Sunnydale area and he wanted to know if there would be an increased security focus on the Sunnydale area.

Commander Lindo commented on the possible reasons for the shootings including retaliation from the related homicides and shootings and the geographical set-up of Sunnydale.

Commissioner Larkin commented on the fact that the incidents are usually not SFHA residents and Commander Lindo confirmed that statement and stated that the SFPD was working on reducing the number of non-residents committing crimes through the Violence Reduction Plan.

President Brown went on to state that a better effort needed to made on our developments to improve the violence. Ms. Saez informed President Brown that measures would be taken and a report would be made at a future meeting.

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.

Commission Meeting Minutes May 08, 2008 Page 5 There were no public comments on agenda items.

9.

11.

UNFINISHED BUSINESS None NEW BUSINESS

A. CONSENT AGENDA 2) RESOLUTION AUTHORIZING THE INTERIM EXECUTIVE DIRECTOR TO ENTER INTO A CONTRACT WITH LYON MEDICAL CONSTRUCTION FOR EXTERIOR PAINT STABILIZATION AND IMPROVEMENTS PROJECT AT CAL 1-18(6), PING YUEN NORTH HOUSING DEVELOPMENT, IN AN AMOUNT NOT TO EXCEED $366,250

During this time Commissioner G. Brown excused himself from the meeting and returned after the vote. Commissioner Schwartz moved to approve this Resolution and Commissioner Jones seconded the motion. This request was approved by all present Commissioners.

B) RESOLUTION AUTHORIZING THE INTERIM EXECUTIVE DIRECTOR TO SUBMIT A DISPOSITION APPLICATION FOR A VACANT SURPLUS PORTION OF THE 1750 MC ALLISTER (CAL 1-19(2)) PUBLIC HOUSING SITE CURRENTLY USED FOR OPEN PARKING, TO THE U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT (“HUD”), AND SUBJECT TO HUD APPROVAL, DISPOSE OF THE PROPERTY AT FAIR MARKET VALUE Ms. Saez introduced Barbara Smith, Administrator of Housing Development and Redevelopment. Ms. Smith explained that the Resolution was to dispose of the air rights over open parking areas to generate additional income for the Authority. This is consistent with HUD guidelines as HUD has provisions for housing authorities to submit disposition applications. This area was identified as a potential site for disposition in 1998.

Ms. Smith went on to state that the area has a 25 foot frontage and is approximately 28,000 square feet. A preliminary estimate was done by a broker and the air rights are worth $800,000. Working with the Procurement Department, staff issued a solicitation for broker services. Staff then recommended approval of this resolution.

Commissioner Jones moved to approve this Resolution and Commissioner Schwartz seconded the motion. This Resolution was approved unanimously.

C) RESOLUTION AUTHORIZING THE INTERIM EXECUTIVE DIRECTOR TO SUBMIT A DISPOSITION APPLICATION FOR A VACANT SURPLUS PORTION

Commission Meeting Minutes May 08, 2008 Page 6 OF THE J.F.K. TOWERS (CAL 1-18(1)) PUBLIC HOUSING SITE CURRENTLY USED FOR OPEN PARKING, TO THE U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT (“HUD”), AND SUBJECT TO HUD APPROVAL, DISPOSE OF THE PROPERTY AT FAIR MARKET VALUE Ms. Saez introduced Barbara Smith, Administrator of Housing Development and Redevelopment. Ms. Smith explained that the Resolution was to dispose of the air rights over open parking areas to generate additional income for the Authority. This is consistent with HUD guidelines as HUD has provisions for housing authorities to submit disposition applications. This area was identified as a potential site for disposition in 1998 needs assessment. Ms. Smith went on to state that the area has a 41 foot frontage.

The market value is estimated to be anywhere between $2.1 and $2.8 million dollars.

Staff then recommended approval of this Resolution.

Commissioner G. Brown requested clarification on the pictures that were circulated and Ms. Smith informed him that they were pictures of the open parking space above J.F.K Towers. Commissioner G. Brown questioned what the space was used for currently and Ms. Smith informed him that it was used for parking. She also informed the Commissioners that a requirement of the purchaser or developer would include continuous and permanent parking for SFHA residents.

Vice President Gans moved to approve this Resolution and Commissioner Larkin seconded the motion. This Resolution was approved unanimously.

D) RESOLUTION AUTHORIZING NEGOTIATE AND ENTER INTO PERFORM A COMPREHENSIVE ENERGY SAVINGS MEASURES, CONTRACTS

THE INTERIM EXECUTIVE DIRECTOR TO AN AGREEMENT WITH AMERESCO TO ENERGY AUDIT, IDENTIFY POTENTIAL AND DEVELOP ENERGY PERFORMANCE

Ms. Saez stated that last year the agency issued an RFP for solicitation for companies to come in a review our energy situation. She then introduced Barbara Smith to elaborate.

Ms. Smith stated that HUD allows Housing Authorities to contract out with energy services companies. The goal is to implant a program that consists of an energy audit and then work with the Authority to create a scope of energy related capitol improvements.

Based on these improvements, our energy cost will go down. HUD allows the authority to keep the difference between the amount the agency is currently reimbursed and the reduced energy cost and to use those funds to finance capitol improvements over a 12-20 year period of time.

The program offers incentives from HUD, state and local rebates as well as other ways of leveraging funds for this program. The energy improvements were outlined in the memo

Commission Meeting Minutes May 08, 2008 Page 7 and include lighting upgrades, plumbing upgrades, leak detection systems and repairs, boiler replacements, building ventilation etc.

The Authority issued a request for proposals and AMERESCO was the highest ranked firm. They have years of experience working with housing authorities. Staff recommended approval of this resolution.

Commissioner Larkin wanted to know what the savings would be over a five year period and Ms. Smith estimated three to four million dollars per year. A more precise number would be available after the audit was done.

Commissioner Schwartz wanted clarification on the payment in the event that the Housing Authority does go forward with the contract. Ms. Smith stated that if the audit was complete and the Housing Authority decided it was not going forward the cost would be $55,000. If the Authority went forward with the contract, the cost will be absorbed into the financing. Commissioner Schwartz wanted to make sure that the teams were rated in part on the fees and Ms. Smith confirmed and stated that AMERESCO was the lowest.

Commissioner Jones wanted to make sure that a review of milestones was included in the negotiations and wanted to know why it took a year to get to this point since the RFP was issues last October. Ms. Saez informed him that the Department of Environment was asked to review the program which added to the delay in time.

Commissioner Larkin wanted to know an estimated time of completion for the project.

Ms. Smith informed him that the audit would take approximately nine months and after the specifications and an agreement with HUD were drafted, it would be an estimated year before starting the work.

Commissioner Jones motioned to approve the Resolution. Commissioner Schwartz seconded the motion. This Resolution was approved unanimously.

12.

5/8/2008

5/8/2008

5/8/2008

PUBLIC COMMENTS ON ITEMS NOT ON AGENDA

Non-Agenda

Non-Agenda

Non-Agenda

Ashley Rhodes

Alex Prince

Sara Shortt

Non Resident

Personal Business

Wanted to comment on the fact that small time contractors were not being able to participate in the bidding process due to bonding issues and wanted the Authority to look into alternative measures.

Non Resident

Is looking for Public Housing for his daughter and himself and wanted some possible assistance by the Commission

Non Resident

Wanted to inform the Commissioners of a Community Forum where a topic of discussion was the Housing Authority. She was interested in providing the Commissioners with a copy of the report.

Housing Rights Committee

Commission Meeting Minutes May 08, 2008 Page 8

13.

COMMISSIONER COMMENTS AND REPORTS Vice President Gans requested a report on any conferences for Commissioners.

President Brown congratulated Commissioner Jones on his involvement in Communities of Opportunities and invited the Commissioners to review the newsletter of upcoming events.

Commissioner Jones wanted a report on the programs that the Housing Authority was funding.

Commissioner Schwartz commented that he attended the NAHRO National Legislative Conference and the NAHRO Pacific Southwest Conference. Commissioner Schwartz wanted to know if we were active in the Pacific Southwest region of NAHRO and proposed the idea of hosting the next NAHRO conference in the fall. Ms. Saez informed him that staff would review our memberships and report back at the next commission meeting on the funding and resources for attending the conferences.

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 5:20 p.m.

15.

RECONVENING OF COMMISSION MEETING The Commission reconvened from Closed Session at 6:20p.m. Mr. Crawford stated that President Brown, Vice President Gans, Commissioner Jones, Commissioner Schwartz, Commissioner Larkin, Commissioner Hsu and Commissioner G. Brown were present.

The Commission made a decision to spend an amount not to exceed $750,000 as a good faith payment to pay down the outstanding judgments against the San Francisco Housing Authority.

16.

ADJOURNMENT There being no further business to come before the Commissioner Jones moved to adjourn the meeting. Commissioner Larkin seconded the motion. President Brown adjourned the Commission Meeting of May 08, 2008, at 6:21p.m.

Mirian Saez, Secretary/ Interim Executive Director

Rev. Amos Brown, President

Commission Meeting Minutes May 08, 2008 Page 9