9-11-08 Minutes

HOUSING AUTHORITY OF THE CITY AND COUNTY OF SAN FRANCISCO Minutes of Commission Meeting Monday, September 11, 2008

440 Turk Street San Francisco, California

A Special meeting of the Housing Authority Commission of the City and County of San Francisco met at 440 Turk Street, San Francisco, California, on Thursday, September 11, 2008, at 4:00 p.m.

President A. Brown called the meeting to order at 4:07 p.m.

1.

ROLL CALL PRESENT:

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

NOT PRESENT:

Dwayne Jones, Commissioner

A quorum was present.

ALSO PRESENT:

2.

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

APPROVAL OF AGENDA Commissioner Gans moved to approve the Agenda and Commissioner Larkin seconded t he motion. This request was approved unanimously.

3.

GENERAL COMMUNICATIONS There were no general communications.

4.

REPORT OF SECRETARY Henry Alvarez, Executive Director informed the Commissioners that he will be participating in a dinner presented by one economy in San Francisco. He also reminded the Commissioners that the upcoming National Association of Housing and Redevelopment Officials (NAHRO) Conference is in the city of San Antonio and Henry acts as the conference chair.

September 11, 2008 FINAL MIN

Commission Meeting Minutes September 11, 2008 Page 2

Mr. Alvarez went on to remind the Commissioners that the National Association of African Americans in Housing (NOAAH) will be having their tenth annual conference in Washington DC and he extended an invitation to the Commissioners.

Vice President Gans requested the dates for the NAHRO Conference and Mr. Alvarez stated that he would get all the information to the Commissioner before the next scheduled Commission meeting.

That concluded the Secretary’s Report.

5.

COMMITTEE REPORTS There were no Committee Reports.

6.

REPORT OF GENERAL COUNSEL Mr. Roger Crawford, Assistant General Counsel, stated that there would be a Closed Session to discuss pending litigation, personnel issues and labor negotiations.

7.

TENANT REPRESENTATIVE REPORT There was no Tenant Representative Report.

8.

PUBLIC COMMENT ON AGENDA ITEMS There were no Public Comments on Agenda Items

9.

UNFINISHED BUSINESS There was no unfinished business.

10.

NEW BUSINESS

A) CONSENT AGENDA 1) APPROVAL OF MINUTES FOR MEETING OF AUGUST 28, 2008 Vice resident Gans moved to approve the Consent Agenda. Commissioner Schwartz seconded the motion. The Consent Agenda was approved unanimously.

Commission Meeting Minutes September 11, 2008 Page 3

B) ACTION ITEMS 1) RESOLUTION AUTHORIZING THE EXECUTIVE DIRECTOR TO ENTER INTO A CONTRACT WITH BAYVIEW PAINTING & CONSTRUCTION FOR EXTERIOR PAINT STABILIZATION AT THE CAL 1-3 SUNNYDALE HOUSING DEVELOPMENT IN AN AMOUNT NOT TO EXCEED $1,091,580 James Mark, Senior Project Manager for the SFHA Modernization Department described the specifics of the proposed contract. He stated that the Sunnydale development was a pre-war building with concrete systems which hasn’t been painted in ten years. The painting improves the ascetics of the site for future construction and rental. This work includes lead paint stabilization as well as plywood and redwood trim to beautify the neighborhood. The Solicitation is to paint 91 buildings which hold 767 apartments as well as the Mayor Willie Brown building.

There were 7 bidders for the job with Bayview Painting being the lowest bidder.

They have confirmed their bid with the housing development and contracting department. SFHA has worked with Bayview Painting on several projects in the past.

They exceeded the 25% resident hiring requirement, they met all SFHA goals and they are ready to start construction of the project as soon as the Resolution is approved by the Commission.

The work is scheduled to be completed in 90 calendar days and has a two year warranty. The funding for this project is budgeted in the 2007 Capitol Fund. Staff recommended approval of this Resolution.

Commissioner Larkin wanted to know if sub contractors were involved with the project and what the expectations were for resident hiring and workforce size. Jeff Fuschs, represented Bayview Painting and informed the Commission that the current workforce is compromised of 21 workers, 7 of them being SFHA residents. They intend to hire 6-7 additional Sunnydale residents for this project including security, concrete masons and painters. Commissioner Brown wanted to make sure that the contractor was equipped to handle 1.2 buildings a day and Mr. Fuschs informed the Commission that they would be completing three buildings a day which includes patching, spot priming and painting.

Barbara Smith, Administrator of Housing Development and Modernization informed the Commission that Mock-Ups were done in Sunnydale and it makes a dramatic change in the appearance of development. She informed the Commission that residents were involved in the final selection of colors and that different paint styles and schemes will be used. President A. Brown suggested using blues and greens to add a calming effect for a possible safer development.

Commissioner Hsu requested clarification on how Bayview Painting could bid three times lower then the SFHA estimate. Ms. Smith informed the Commission that several factors play into the estimates including the number of bids and the economy.

Commission Meeting Minutes September 11, 2008 Page 4 Commissioner Brown motioned to approve agenda item B1. Commissioner Larkin seconded the motion. This Resolution was approved unanimously.

2) RESOLUTION AUTHORIZING THE EXECUTIVE DIRECTOR TO ENTER INTO A CONTRACT WITH AAA CONSTRUCTION GROUP INC. FOR PAVING REPAIR AND SITE WORK AT THE CAL 1-15 PING YUEN AND CAL 1-18(6) PING YUEN NORTH HOUSING DEVELOPMENTS IN AN AMOUNT NOT TO EXCEED $443,250 Alicia Sisca, Construction Services Manager for the SFHA Modernization Department informed the Commissioners that this Resolution would approve the site work and paving at Ping Yuen and Ping Yuen North. The developments are very densely populated and the existing asphalt is aged and has a lot of cracks and lifting which creates tripping hazards and potential liability. The contract allows us to fix all those problems as well as provide a safer and longer lasting outdoor space for the residents in addition to reduce maintenance costs.

Six responses were received for this bid and AAA Construction was the lowest bidder being 11% lower then the cost estimate. The contractor has agreed to the Resident Hiring requirements and has already exceeded the requirements on a current project they are working on in Holly Courts. They have worked with SFHA on other projects and the contractor has confirmed their bid with the housing development and contracting department. The funding for this project has been approved in the 2007 Capitol Fund Budget. Staff recommended approval of this Resolution.

Commissioner Brown waned to know about the apprentice program. Mike Ponder representrd AAA Construction and informed the Commission that they had decided to hire a Sunnydale resident as a truck driver but they will be looking for apprentices and journey men. Commissioner Brown wanted to make sure that the residents are able to get into one of the crafts. Mr. Ponder informed the Commissioner that AAA Construction is signatory with all the trades which means that one trade would be a mason and plaster apprenticeship and the other would be a teamster or laborer.

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

3) RESOLUTION AUTHORIZING THE EXECUTIVE DIRECTOR TO ENTER INTO AN EXCLUSIVE NEGOTIATING RIGHTS AGREEMENT WITH BRIDGE HOUSING CORPORATION FOR REVITALIZATION OF THE CAL 1-2 POTRERO AND CAL 1-10 POTRERO ANNEX PUBLIC HOUSING SITES During this point in the meeting President A. Brown announced that Commissioner Schwartz requested to recuse himself to avoid the appearance of a conflict of interest.

Barbara Smith, Administrator of Housing Development and Modernization informed the Commission that this Resolution would follow the lines of the Hope SF principals

Commission Meeting Minutes September 11, 2008 Page 5 including no lose of public housing, creating economically integrated communities , maximizing the creation of new affordable housing involving residents to the highest levels of participation, integrating the process with neighborhood improvement plans, creating environmentally sustainable and accessible communities and building a strong sense of community.

In March the Commission authorized the Executive Director to negotiate an exclusive negotiating rights agreement which lays out the process for negotiating all of the subsequent business points, terms and conditions and agreements between the authority and the development teams. The execution of the contract will start the revitalization process. During the 24 month term of the ENRA, the authority and the developer will developer will negotiate the terms of an overall master development agreement for phased redevelopment, a disposition and development agreement, ground lease and related documents. The project consists of 1 for 1 replacement of the existing 616 units with 229 additional units plus 446 affordable and market rate units.

Staff recommended approval of this Resolution.

Commissioner Larkin wanted to know if we were building “green�. Ms. Smith informed the Commission that the city has implemented several green elements including using reclaimed water, being energy efficient and they will use safe materials. Commissioner Brown wanted clarification on the replacement factors as well as the new affordable and market rate rentals. Ms. Smith informed him that due to the density there is an opportunity to increase housing as well as the additional benefit of a parcel of property adjacent to the property.

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

4) RESOLUTION AUTHORIZING THE EXECUTIVE DIRECTOR TO ENTER INTO AN EXCLUSIVE NEGOTIATING RIGHTS AGREEMENT WITH MERCY HOUSING CALIFORNIA, A CALIFORNIA NONPROFIT CORPORATION, AND THE RELATED COMPANIES OF CALIFORNIA, LLC, A CALIFORNIA LIMITED LIABILITY COMPANY, FOR REVITALIZATION OF THE CAL 1-3 SUNNYDALE AND CAL 1-18(7) VELASCO PUBLIC HOUSING SITES Ms. Smith informed the Commission that this Resolution would follow the lines of the Hope SF principals including no lose of public housing, creating economically integrated communities, maximizing the creation of new affordable housing involving residents to the highest levels of participation, integrating the process with neighborhood improvement plans, creating environmentally sustainable and accessible communities and building a strong sense of community.

The project consists of 1 for 1 replacement of the existing 767 units plus replacement of 18 Velasco units with 285 additional units plus 428 affordable and market rate home ownership units. There will be community facilities and outdoor open space.

Staff recommended approval of this Resolution.

Commission Meeting Minutes September 11, 2008 Page 6

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

5) RESOLUTION AUTHORIZING THE EXECUTIVE DIRECTOR TO ENTER INTO AN EXCLUSIVE NEGOTIATING RIGHTS AGREEMENT WITH Em JOHNSON INTEREST, INC. AND TMG PARTNERS, A CALIFORNIA CORPORATION, FOR REVITALIZATION OF THE CAL 1-8 WESTSIDE COURTS PUBLIC HOUSING SITE Ms. Smith informed the Commission that this Resolution would follow the lines of the Hope SF principals including no lose of public housing, creating economically integrated communities, maximizing the creation of new affordable housing involving residents to the highest levels of participation, integrating the process with neighborhood improvement plans, creating environmentally sustainable and accessible communities and building a strong sense of community.

The project consists of 1 for 1 replacement of the existing 136 units plus additional affordable and market rate home ownership units which will be determined during the planning process. There will be community facilities and outdoor open space.

Staff recommended approval of this Resolution.

Commissioner Schwartz wanted to know the proposed income level of the returning residents. Ms. Smith explained that there will be no lose of housing for public housing residents. The replacement housing will serve the same household income mix, will have rent subsidies and they will serve very low incomes.

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

6) RESOLUTION AUTHORIZING THE EXECUTIVE DIRECTOR TO EXTEND THE EXCLUSIVE NEGOTIATING RIGHTS LETTER AGREEMENT (“ENRA”) FOR THE REVITALIZATION OF THE CAL 1-18(3) HUNTERS VIEW PUBLIC HOUSING SITE WITH THE DEVELOPMENT TEAM OF HUNTERS POINT AFFORDABLE HOUSING, INC. THE JOHN STEWART COMPANY, AND DEVINE & GONG INC. AND TO ASSIGN THE DEVELOPER’S RIGHTS UNDER THE ENRA TO HUNTERS VIEW ASSOCIATES, L.P.

Dominica Henderson, Management Analyst for the SFHA Development and Modernization Department informed the Commission that this Resolution would extend the ENRA agreement and assign the developers rights to the limited partnership. Under this agreement we have already completed a site plan for the entire Hunters View site with the help of the residents and community advocates and we have schematics for Phase one.

Commission Meeting Minutes September 11, 2008 Page 7 We are nearing the end of the Environmental Review period and we are awaiting the approval letter from HUD. The entitlements passed at the Planning Commission in June and several meetings have been held with residents regarding the relocation plan. She then invited the Commissioners to attend the resident meetings.

5.5 million dollars worth of city funding the Mayors Office of Housing and the Redevelopment Agency and they also will be in front of the Redevelopment Commission to receive another 12.5 million dollars. Additionally, SFHA received a federal appropriation of 1.2 million dollars and additional capitol fund replacement housing factor grant in the amount of $675,000 for the first phase.

Financially as well as in terms of community engagement, the SFHA has worked diligently under the ENRA and extending it allows us to continue on and get our demo application approved and present to the Commission the Relocation Plan.

Commissioner Larkin wanted to know the dates of the resident meetings. Ms. Henderson informed him that she would provide the Commissioners with the dates and times of the meetings and stated that in the next couple of weeks staff would be preparing an update on the contracting and hiring plan.

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

11.

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

12.

COMMISSIONERS COMMENTS AND REPORT Commissioner Larkin wanted to express his concern for wanting to make sure we have tenant representation at the meetings. Belinda Jefferies, Administrator of the Office of Fair Housing and Resident Services informed the Commission that her staff was working diligently to ensure the proper representation at the meetings.

President A. Brown reached out to staff and all who were present at the meeting and encouraged then to register to vote. Mrs. Jeffries informed the Commission that the Office of Fair Housing has an active voter registration campaign.

13.

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

Commission Meeting Minutes September 11, 2008 Page 8 personnel issues, pending litigation and labor negotiations. The Commission went into Closed Session at 5:21 p.m.

14.

RECONVENING OF COMMISSION MEETING The Commission reconvened from Closed Session at 6:35 pm. Mr. Crawford stated that President A. Brown, Vice President Gans, Commissioner Brown, Commissioner Schwartz, Commissioner Larkin and Commissioner Hsu were present. No decisions were made.

16.

ADJOURNMENT There being no further business to come before the Vice President Gans moved to adjourn the meeting. Commissioner Schwartz seconded the motion. President A. Brown adjourned the Commission Meeting of September 11, 2008, at 6:36p.m.

Henry A. Alvarez III, Secretary/ Executive Director

Rev. Amos Brown, President