6/11/2009

HOUSING AUTHORITY OF THE CITY AND COUNTY OF SAN FRANCISCO Minutes of Commission Meeting Thursday, June 11, 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, June 11, 2009, at 4:00 p.m.

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

1. ROLL CALL PRESENT:

Rev. Amos Brown, President Neola Gans, Vice President George R. Brown, Commissioner (excused) Jane Hsu, Commissioner Millard Larkin, Commissioner Matthew Schwartz, Commissioner Dwayne Jones, Commissioner (excused)

NOT PRESENT: A quorum was present.

ALSO PRESENT: 2.

Henry A. Alvarez III, Executive Director Mr. Tim Larsen, Assistant General Counsel

APPROVAL OF AGENDA Henry A. Alvarez informed the Commissioners that Item B2 would be taken first on the agenda. Commissioner Larkin motioned to approve the agenda as amended.

Commissioner Hsu seconded the motion. The agenda was passed unanimously.

During this time Agenda Item B2 was heard: RESOLUTION AUTHORIZING THE EXECUTIVE DIRECTOR TO ENTER INTO A CONTRACT WITH ARTHULIA INC. FOR BOILER AND WATER HEATER REPLACEMENT AT CAL 1-2, POTRERO TERRACE DEVELOPMENT IN AN AMOUNT NOT TO EXCEED $480,000.00.

Commission Meeting Minutes June 11,2009 Page 2 Barbara Smith, Administrator of Housing Development and Modernization presented this item.

The Potrero Terrace public housing development was built in 1942. It consists of 39 two story and three story reinforced concrete buildings. These buildings occupy two city blocks along Connecticut Street between 23rd and 26th Streets and between Dakota and Wisconsin Streets. The community spaces and office are located in the building at the corner of Connecticut and 25th Streets. Boilers located throughout the site are used to provide space and water heating to the buildings. The boiler system is aging throughout the site. Due to deterioration, the heating system piping leaks at numerous locations for buildings G-16 and G-17, including the crawl spaces and below ground level. The leaks are so severe that the existing boiler capacity is no longer able replenish hot water loss and provide heat and hot water to the units. The space heating system is shut down and portable electrical heaters have been provided to tenants until the system is repaired.

The SFHA was approached by the San Francisco Public Utility Commission (SFPUC) and asked to identify a capital improvement project that would result in water and gas conservation. This project was presented and approved by the SFPUC for $481,618 in grant funding.

The Authority issued Solicitation No. 09-620-IFB-022 on April 23, 2009, following review and approval of the solicitation by the Finance and Procurement & Contracts (Procurement) Departments. The procurement process for the action covered by this resolution meets the procurement standards of 24 CFR 85.36 “Procurement”, HUD Handbook 7460.8 REV 1, “Procurement Handbook for Public Housing Agencies and Indian Housing Authorities”, the San Francisco Housing Authority Procurement Policy Manual, and California and local laws. Per HUD-5369 Instructions to Bidders, the contract award is based on the lowest, responsive, and responsible bidder. Based on the above, the lowest, responsive, and responsible bidder is Arthulia Inc. (ART). ART’s bid match the construction cost estimate developed by housing authority consultants. Their bid is considered reasonable and acceptable and upon request, ART reviewed their bid and informed Procurement that they stood by their bid. ART has done similar work for the San Francisco Public Work and their work is confirmed to be in good quality.

Vice President Gans motioned to approve the Resolution. Commissioner Schwartz seconded the motion. The Resolution was passed unanimously.

3.

GENERAL COMMUNICATIONS/ REPORT OF SECRETARY Henry Alvarez II, Executive Director informed the Commission about several items including included in the Commission Binder. He highlighted the May 22 Letter from HUD regarding Audit Issues and the approval letter from HUD for Demolition of Hunters View. That concluded the report of Secretary.

4.

COMMITTEE REPORTS

Commission Meeting Minutes June 11,2009 Page 3 There were no Committee Reports.

5.

REPORT OF GENERAL COUNSEL Mr. Tim Larsen, Assistant General Counsel informed the Commission that there would not be a Closed Session.

6.

TENANT REPRESENTATIVE REPORT Mr. Michael Yarbourough reported in the place of Mr. William Vitale. He reported on maintenance repairs, emergency lighting in stairwells and boiler issues at 939 Eddy Street.

Kimberly Hill-Brown, President of the Tenants Association, informed the Commissioners of several items including finance training provided to PHTA, Elections, PHTA non-profit status and summer events that have been banned.

Vice President Gans requested that staff look into providing activities for SFHA Families.

Mr. Alvarez informed the Commission that he would ensure that staff continues to look into possible activities for families.

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)

RESOLUTION AUTHORIZING THE EXECUTIVE DIRECTOR TO ENTER INTO A TWO YEAR CONTRACT FOR UNLAWFUL DETAINER LEGAL SERVICES ON AN AS-NEEDED BASIS IN AN AMOUNT NOT TO EXCEED $75,000 PER YEAR (Presented by: Tim Larsen, Acting General Counsel, Office of General Counsel)

2) RESOLUTION AUTHORIZING THE EXECUTIVE DIRECTOR TO SUBMIT AN APPLICATION TO THE U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT FOR UP T0 $10,000,000 IN FUNDING UNDER THE AMERICAN RECOVERY AND REINVESTMENT ACT CAPITAL FUND RECOVERY COMPETITION GRANT FOR CA001000954, HUNTERS VIEW (Presented by: Dominica Henderson, Management Analyst/ Barbara Smith, Administrator of Housing Development and Modernization)

Commission Meeting Minutes June 11,2009 Page 4 3) RESOLUTION AUTHORIZING THE EXECUTIVE DIRECTOR TO SUBMIT AN APPLICATION TO THE U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT FOR FUNDING UNDER THE AMERICAN RECOVERY AND REINVESTMENT ACT CAPITAL FUND RECOVERY COMPETITION GRANT NOTICE OF FUND AVAILABILITY FOR REHABILITATION OF 1111 BUCHANAN AND COMMIT $75,000 TO LEVERAGE UP TO $1,500,000 IN GRANT FUNDING (Presented by: Alicia Sisca, Construction Manager/ Barbara Smith, Administrator of Housing Development and Modernization)

4) RESOLUTION AUTHORIZING THE EXECUTIVE DIRECTOR TO EXECUTE A RENEWAL CONTRACT WITH THE HEALTH AND HUMAN SERVICES AGENCY TO ADMINISTER THE SHELTER PLUS CARE RENTAL ASSISTANCE PROGRAM FOR AN ADDITIONAL TWO YEARS AND EARN ADMINISTRATIVE FEES OF UP TO $450,000 PER YEAR (Presented by: Tony Ucciferri, Administrator of Section 8) Vice President Gans motioned to approve the Consent Agenda. Commissioner Larkin seconded the request. The Consent Agenda was approved unanimously.

B) ACTION ITEMS

1) RESOLUTION AUTHORIZING THE EXECUTIVE DIRECTOR TO EXECUTE AN AGREEMENT TO ENTER INTO HOUSING ASSISTANCE PAYMENTS CONTRACT WITH NIHONMACHI TERRACE APARTMENTS UNDER THE SECTION 8 PROJECTBASED VOUCHER PROGRAM AND TO EXECUTE THE HOUSING ASSISTANCE PAYMENTS CONTRACT AT THE COMPLETION OF THE CONSTRUCTION PERIOD FOR RENTAL HOUSING ASSISTANCE IN THE AMOUNT OF APPROXIMATELY $1,774,152 PER YEAR Tony Ucciferri, Administrator of Section 8 presented this Resolution. This resolution will authorize the execution of an Agreement to enter into Housing Assistance Payments Contract (AHAP) for the owner of Nihonmachi Terrace Apartments, the Japanese American Religious Federation Housing, Inc., to complete a renovation of the property that will result in the inclusion of 123 units in the Section 8 Project-Based Voucher Program. These units will comprise of 84 one-bedroom, 22 two-bedroom, 14 three-bedroom and 3 fourbedroom units.

The Housing and Econo mic Recov er y Act (HERA) of 2008, aut h orize d by Congr e s s and signe d into law by the Presid e n t of the United Stat e s , includ e d a provision that the resid e n t s of Nihon m a c hi Terrac e Apart m e n t s receive Housing Choice Voucher s as a result of the owner seeking to re- struct u r e its existing HUD contr a c t.

Commission Meeting Minutes June 11,2009 Page 5 The HERA also require d that the vouch e r s issu e d to the reside n t s of Nihon m a c hi Terrac e Apart m e n t s be projectbas e d in order to pres e r v e the long ter m afford a bility of the housing units. At the comple tio n of the renov a tio n, the SFHA will provide rent al assist a n c e to the families living at Nihon m a c hi Terrac e Apart m e n t s in the amo u n t of approxi m a t e l y $1,77 4, 1 5 2 per year for 123 units.

Nihonmachi Terrace Apartments is currently at the end of a twentyyear HUD Multifamily HAP Contract. In an unprecedented act, Congress mandated that the SFHA issue Housing Choice Vouchers to 123 residents of Nihonmachi Terrace Apartments. Once the renovation of this property is completed, the project-basing of the rental assistance will ensure that the units remain affordable for a minimum of fifteen years and in all likelihood for much longer after that. This project will be separately funded by HUD and will result in additional Administrative Fee for the SFHA of $143,172 per year.

Commissioner Schwartz wanted to give thanks to Speaker Pelosi’s office for assisting with this project. He then motioned to approve the Resolution. Commissioner Larkin seconded the motion. The Resolution was passed unanimously.

10.

PUBLIC COMMENTS ON ITEMS NOT ON THE AGENDA Public Comments were heard by the following: Thomas Forsey Dennis Lemsey Andre Tyson Lloyd Tibeux Moniqua Brown Elise Williams Ashley Rhodes Jim Salinas

11.

COMMISSIONERS COMMENTS AND REPORTS President Brown commented on making sure that employment opportunities were afforded to people from the communities in which the SFHA serves.

Commissioner Larkin commented on making sure employment opportunities were extended to the members of the Bayview community. He also wanted to make sure that we were abiding by our contractual requirements to hire residents.

Commission Meeting Minutes June 11,2009 Page 6 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 5:05 p.m. No decisions were made.

14.

ADJOURNMENT There being no further business to come before the Commission, Commissioner Schwartz moved to adjourn the meeting. Commissioner Larkin seconded the motion. President Brown adjourned the Commission Meeting of June 11, 2009, at 5:55 p.m.

Henry A. Alvarez, Secretary/ Executive Director

Rev. Amos Brown, President