6/25/2009

HOUSING AUTHORITY OF THE CITY AND COUNTY OF SAN FRANCISCO Minutes of Commission Meeting Thursday, June 25, 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 25, 2009, at 4:00 p.m.

President 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 Jane Hsu, Commissioner Matthew Schwartz, Commissioner Millard Larkin, Commissioner Dwayne Jones, Commissioner (arrived at 4:27)

NOT PRESENT: A quorum was present.

ALSO PRESENT: 2.

Mr. Roger Crawford, Acting HR Director Mr. Tim Larsen, Assistant General Counsel

APPROVAL OF AGENDA Commissioner Brown motioned to approve the agenda. Vice President Gans seconded the motion. The agenda was approved unanimously.

3.

GENERAL COMMUNICATIONS/ REPORT OF SECRETARY Roger Crawford, Acting Director of HR reported in Henry Alvarez’ absence. He informed the Commission Mr. Alvarez was out of town at the CLPHA conference and the Commissioners could find information in their binders regarding the HUD, SFHA Shooting report and other general correspondence.

4.

COMMITTEE REPORTS

Commission Meeting Minutes June 25, 2009 Page 2 There were no Committee Reports.

5.

REPORT OF GENERAL COUNSEL Mr. Tim Larsen, Assistant General Counsel informed the Commission that there would be a Closed Session.

6.

TENANT REPRESENTATIVE REPORT Mr. Vitalie was not present at this meeting.

Kimberly Hill-Brown, President of the Tenants Association, informed the Commissioners of several items including issues with PHTA, elections and resident concerns.

7.

PUBLIC COMMENT ON AGENDA ITEMS Public Comments were heard by the following: Jackie Sachs

8.

UNFINISHED BUSINESS There was no unfinished business.

9.

NEW BUSINESS

A) CONSENT AGENDA 1) APPROVAL OF MINUTES FOR MEETING OF MAY 14, 2009 2) APPROVAL OF MINUTES FOR MEETING OF MAY 28, 2009 3) RESOLUTION AUTHORIZING THE EXECUTIVE DIRECTOR TO SUBMIT APPLICATIONS TO THE U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT FOR UP T0 $13,000,000 IN THE AMERICAN RECOVERY AND REINVESTMENT ACT CAPITAL FUND RECOVERY COMPETITION GRANTS FOR CA001000957, ROSA PARKS, CA001000966, HOLLY COURTS AND CA001000982, 3850 18TH STREET Vice President Gans moved to approve the Consent Agenda. Commissioner Hsu seconded the motion. This Resolution was approved unanimously.

B) ACTION ITEMS 1) RESOLUTION AUTHORIZING THE EXECUTIVE DIRECTOR TO ENTER INTO TWO SEPARATE TWO-YEAR CONTRACTS WITH SAIDA+SULLIVAN DESIGN PARTNERS AND LEVY DESIGN

Commission Meeting Minutes June 25, 2009 Page 3 PARTNERS TO PROVIDE ARCHITECTURAL CONSULTANT SERVICES ON AN AS-NEEDED, TASK ASSIGNMENT BASIS FOR ALL DEVELOPMENTS IN AMOUNTS NOT-TO-EXCEED $200,000 EACH AND FOR A TOTAL AMOUNT NOT-TO-EXCEED $400,000 Alicia Sisca, Construction Services Manager presented this Resolution. This Resolution authorizes the Executive Director to enter into two (2) separate contracts with the highest-ranked architectural consultant firms on an asneeded, task assignment basis for all developments over the next two years.

These contracts will provide the San Francisco Housing Authority (Authority) with architectural consultant services for planned renovations and capital improvement projects from Capital Fund and other programs for fiscal years 2009 and 2010.

The Housing Development and Modernization Department (HD/MOD) developed this specific RFQ document based on the Authority’s master documents prepared by the Procurement and Contracts Department. The Procurement Department reviewed and approved the documents prior to the start of the RFQ process and bidding.

Solicitation 09-620-RFQ-014 was issued on March 9, 2008. The Evaluation

Panel confirmed that Saida+Sullivan Design Partners and Levy Design Partners will provide timely proposals, have a good understanding of all architectural disciplines, and have current architectural registration licenses. Principles of both firms indicated their continued willingness to work with the Authority and promised high quality products. An understanding of the type of work that would be required was presented, acknowledged and discussed in detail.

Saida+Sullivan Design Partners and Levy design Partners have agreed to hire public housing residents to meet or exceed the 25% requirement established by Commission Resolution No. 4967 for non-construction contracts that exceed $50,000. Saida+Sullivan Design Partners and Levy Design Partners have contacted the Authority’s resident hiring specialist to seek out and interview qualified Authority residents for job opportunities in their office. It is calculated that about 250 hours of resident employment and training will be provided on each of these two contracts when these contracts are fully expended. Saida+Sullivan Design Partners and Levy Design Partners are small local Women Business Enterprises and have provided an Affirmative Action Acknowledgement form that meets the requirements of Executive Order 11246.

Commissioner Brown motioned to approve this Resolution. Commissioner Jones seconded the motion. This Resolution was passed unanimously.

2) RESOLUTION AUTHORIZING THE EXECUTIVE DIRECTOR TO ACCEPT AMERESCO’S MARCH 21, 2009 ENERGY AUDIT REPORT AND ENTER INTO AN ENERGY SERVICES

Commission Meeting Minutes June 25, 2009 Page 4 AGREEMENT WITH AMERESCO TO IMPLEMENT AN ENERGY SERVICES CAPITAL IMPROVEMENT PROJECT IN THE ESTIMATED AMOUNT OF $25,000,000 Barbara Smith, Administrator MOD/HD presented this Resolution. This

resolution authorizes the Executive Director to enter into an Energy Services Agreement (ESA) with Ameresco, in substantially the form attached (Attachment I), to implement an Energy Services Capital Improvement Project based on Ameresco’s March 31, 2009 Energy Audit Report and negotiated scope of work. The proposed $27.5 M package of measures encompasses the best economic payback approach, while addressing utility-related capital needs at the developments as identified by Ameresco, the San Francisco Housing Authority’s (SFHA) 2007 Comprehensive Physical Needs Assessment, the Nelrod Company 2005 Qualified Energy Audit, Property Management, maintenance work orders, and recommendations from residents and the community through the PHA Plan process.

As an incentive to conserve energy and increase the efficiency of gas, electricity and water usage at public housing developments, HUD allows housing authorities to finance and implement energy conservation related capital improvements and services through Energy Performance Contracts with companies called ESCOs. The arrangement, with companies like Ameresco, allows housing authorities to leverage private sector funds to make improvements rather than use limited Capital Fund Program dollars.

The amount of work that is proposed includes Install new high efficiency toilets, Install low flow showerheads and faucet aerators, Install front-loading washers, Install new showers where there are only tubs, Upgrade common area lighting, Upgrade apartment lighting, Install cogeneration systems, Install energy star refrigerators, Install vending machine controls, Replace space heating boilers, Replace domestic water heaters, Replace apartment heating systems, Improve building ventilation efficiency, Replace heating convectors and risers, Install attic insulation, Replace windows JFK, Holly courts and 939 Eddy and Install Energy Management Systems.

The proposed Energy Services Contracting project financing would be entirely amortized by the utility cost savings generated and guaranteed by the Energy Performance Contract with a 20 year term financing. A tax-exempt municipal lease is proposed and is the most common financing structure provided to HUD as part of the project approval process and the structure most often applied to performance contracts.

This is a capital lease under which the SFHA would own the installed equipment and the lessor or investor would retain a security interest (lien) on the equipment until the capital lease is paid in full at the end of

Commission Meeting Minutes June 25, 2009 Page 5 the lease term. Ameresco has identified approximately $237,000 in water rebates that available from the SFPUC for high efficiency toilets and is talking with SFPUC and the Department of Environment about electric and gas rebates for this project. Ameresco will continue to work in collaboration with SFHA to secure additional conservation incentives. These rebates may be used by the SFHA to fund additional improvements or reduce or pre-pay the debt on the project.

Commissioner Schwartz wanted clarification on the terms of the loans and wanted to ensure that the SFHA could commit to the repayment of the loan. Ms. Smith informed the Commissioners that there was a commitment letter from a lending institution, and that since there were publically offered bonds the interest rate would be determined when the offering takes place. She informed the Commission that the interest rate would be in the range of 5%-6.5% depending on when the issue takes place. Commissioner Schwartz wanted to know if the Resolution would come back to the Commission with the specific financing terms and Ms. Smith informed him that it would come back to the Commission at the July 23 meeting with the investor proposal.

Commissioner Brown questioned how the specific SFHA locations were selected for the services. Ms. Smith informed him that the services were for all SFHA family and senior sites for a total of 38 sites.

Commissioner Schwartz wanted to know if the proposed energy savings comes to the Housing Authority. Ameresco informed the Commissioners that the savings come through utilities and then are sent to SFHA. Commissioner Brown wanted to know how the improvements will effect out PHAS scoring. Ms. Smith informed the Commissioners that this energy agreement would absolutely improve our scoring by improving all of our utility systems.

Commissioner Schwartz motioned to approve this item. Commissioner Brown seconded the motion. This Resolution was passed unanimously.

3) RESOLUTION ATHORIZING THE EXECUTIVE DIRECTOR TO ENTER INTO A MEMORANDUM OF UNDERSTANDING WITH THE CITY AND COUNTY OF SAN FRANCISCO (CCSF) PUBLIC UTILITIES COMMISSION TO EXPAND THE EARTH STEWARDS PROGRAM. Kyle Pedersen, Director of Governmental Affairs and Communications and Carol Izen of the Public Utilities Commission presented this Resolution. The San Francisco Housing Authority, San Francisco Sheriff’s Office, propose the expansion of the Earth Stewards Program for the summer months of JulyAugust 2009. The primary goal of the proposed expansion is to increase summer employment and job training opportunities for SFHA youth and

Commission Meeting Minutes June 25, 2009 Page 6 young adults. The Earth Stewards program will hire 50-SFHA youth between the ages of 16-24 to work 4-hours a day, 5-days per week, for 8-weeks.

Program activities will be divided into three areas: horticulture training, life skills, and community projects. Proposed program activities include Horticulture Training, Life Skills and Community Projects.

San Francisco Housing Authority will provide the Sheriff’s Office with $60,000, to match SFPUC’s commitment of $60,000, to establish 50 dedicated summer employment slots within the Earth Stewards program for SFHA youth and young adults. Funding is available through Public Housing Program funds.

Commissioner Larkin commented on how outstanding the program is and wanted to commend staff and the PUC on the proposed project.

Commissioner Jones wanted clarification on the enrollment and wanted to applaud Mr. Pederson on engaging SFHA youth with employment opportunities.

Commissioner Gans wanted to know the duration of the program. Ms. Izen informed the Commission that it was a eight week program and a seven week program for students who have to start school.

Commissioner Brown wanted to know how the SFHA students were chosen.

Mr. Izen informed the Commissioners that the Mayors Office of Economic and Workface Development is identifying an eligibility pool that is then forwarded to the Garden Project.

Commissioner Gans motioned to approve this Item. Commissioner Jones seconded the motion. This Resolution was approved unanimously.

4) INFORMATIONAL PRESENTATION: 2009 PUBLIC HOUSING AND SECTION 8 ADMINISTRATIVE (PHA) PLAN UPDATE Kyle Pedersen, Director of Governmental Affairs and Communications presented this informational item. A HUD-approved Annual plan will

provide the vehicle for the San Francisco Housing Authority to do the following: Manage the Section 8 and Public Housing Wait List; Provide guidance to SFHA employees in enforcing lease requirements and other HUD regulations; Allocate the Capital Fund Program funds to make health and safety improvements to the public housing sites; and Allocate funding for supplemental services.

This process began February 23rd with a SFHA staff “Kick-Off” meeting that set the framework for how the “PHA Annual Plan Process” would be conducted. The following are proposed changes that the Housing Authority would like to make to its existing PHA Annual Plan: 2009 Section 8 Annual Plan, 2009 Capital Fund Program

Commission Meeting Minutes June 25, 2009 Page 7 Application, Housing Authority Lease Agreement, Incentives to Pay Rent in a Timely Manner.

On June 25, 2009, at its regularly scheduled meeting, the San Francisco Housing Authority Commission will have an opportunity to hear public comment on the changes to the PHA Annual Plan. After listening to public comment and the possible comments of Commissioners, SFHA staff members will begin the process of finalizing PHA Plan documents.

At the July 9, 2009, regularly scheduled meeting of the San Francisco Housing Authority Commission, commissioners will have the opportunity to approve the PHA Plan submission, and authorize sending the Plan it to the Mayor’s Office for approval. Upon the Mayor’s Office approval of the PHA Plan, the SFHA will be submit the documents to HUD for review. The SFHA intends to electronically submit to HUD the PHA Annual Plan documents by July 16, 2009.

Upon HUD receiving the documents, it has 75 days to make comments, and the SFHA can begin to implement its Annual Plan as early as October 1, 2009.

10.

PUBLIC COMMENTS ON ITEMS NOT ON THE AGENDA Public Comments were heard by the following: Suzanne Gamble John Dorsey LeaOtis Martin Tessie Esther Shanna Greenwood Lottie Titus Deva Youngblood Tom Forscey Jackie Sachs

11.

COMMISSIONERS COMMENTS AND REPORTS There were no Commissioner Comments and Reports

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

Commission Meeting Minutes June 25, 2009 Page 8 There being no further business to come before the Commission, Commissioner Jones moved to adjourn the meeting. Commissioner Larkin seconded the motion. President Brown adjourned the Commission Meeting of June 25, 2009, at 5:55 p.m.

Henry A. Alvarez, Secretary/ Executive Director

Rev. Amos Brown, President