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MINUTES SAN FRANCISCO HOUSING AUTHORITY BOARD OF COMMISSIONERS MEETING SEPTEMBER 22, 2011

SCHEDULED: 4:00 p.m. at 440 Turk Street, San Francisco, CA 94102 COMMISSIONERS PRESENT: @ Roll Call: Mirian Saez, Vice President Matthew Schwartz, Commissioner Dorothy Smith, Commissioner Micah Allen, Commissioner After Roll Call: Dr. Veronica Hunnicutt, Commissioner, arr. 4:19pm Ahsha Safai, Commissioner, arr. 4:06 Item 1:

COMMISSIONERS ABSENT: Rev. Amos C. Brown, President

Meeting called to order Vice Chair, Saez called meeting to order at 4:00pm

Item 2:

Approval of Agenda

Motion:

Commissioner Hunnicutt moved to approve agenda Commissioner Safai seconded motion Vote: All approved

Item 3:

Public Comments on items not on the agenda Terry Bagby, resident at 320 Clementina is concerned that he did not get a get a hearing regarding harassment from Mr. Kadir and, as a result, will be seeking remedies with HUD. Charles Durham, resident of 320 Clementina stated that all actions Mr. Kadir filed against him have been withdrawn. Mr. Durham requested the need for weather stripping around his door and to fix the loose tile in front of his sliding glass door. Chris George, resident of 320 Clementina, #816, requests that rent statements come earlier and get posted timely. Mr. George recommends that the Authority search for a different bank that will post payments in a timely manner. Abdul Kadir, resident, 320 Clementina stated that this is the 5th meeting where resident are commenting regarding him. Artese Williams, a resident of Holly Court resident, is concerned that she has been waiting for a transfer for one year and would like to be offered a unit in a safe area.


Item 4:

Secretary’s Report A. Annual Employee recognition: The Authority acknowledged Maria Gonzalez for 20 year of service and Jessica Nam for 25 years of service. B. HUD Correspondence C.

The Housing Authority received Public Housing assessment score of standard performer for the 3rd year in a row. Mr. Alvarez thanks Pamala Pallpalatoc and Anthony Ihejeto’s group as well as Monica Baptista for her efforts in helping the SFHA improve the assessment score. Commissioner Schwartz acknowledged the standard performance score and asked Mr. Alvarez to explain the audit penalties; why were points deducted? Mr. Alvarez explained that there are threshold requirements for tenant account receivables and ending fund balances of the Authorites financial statements. If the threshold requirements are exceeded HUD deducts fractions of points. Commissioner Saez asked what the .48 in the TARS report means in laymen terms? How does this score compare? What is the minimum, maximum? Mr. Alvarez, explained that the maximum score is 4.5 points. The variance reports show that the Authority is within the threshold requirements for vacancy loss of 6-7% year to date. Commissioner Schwartz asked if Commissioners will be hearing from the auditors directly? Mr. Alvarez responded yes. Commissioner Allen asked if the audit report will be public?Mr. Alvarez, explained it will be a public discussion. Commissioner Allen asked if this would occur in a special meeting or a regularly scheduled meeting? Mr. Alvarez responded that it would be an agendized item in a regular meeting. Commissioner Safai commented on the secretary’s report when Mr. Alvarez stated that we are collecting more than what has been reported, what should the score really be? Mr. Alvarez, explained that the score is for the period October 2009 thru September 2010. The data is 2 years old and correction have been made to reflect the current information.

Item 5:

Tenant Representative Report 1. Public Housing Tenant Association (PHTA) – Not Present 2. Citywide Council Senior Disabled (CCSD) A. Ms. Raimeyemy reported that 150 seniors attended their outing to the Monterey Bay Aquarium. Ms. Raimey further stated that Denise Kimble is assisting CCSD in preparing for upcoming elections at the senior sites. Ms. Raimey inquired as to when the capital funding will be used for fencing at 990 Pacific Ave and security gates?


Item 6:

Regular Business A. Consent Items  Minutes o Minutes of regular Board meeting held on August 25, 2011

Motion:

Commissioner Hunnicutt moved to accept minutes of August 25, 2011 Commissioner Safai seconded the motion Vote: All approved B. Action Items 1. [Resolution Authorizing the Executive Director to adopt utility allowance schedule for FY 2011] presented by Anthony Ihejeto, Director, Public Housing Operations Commissioner Schwartz, referring to chart 3, asked how the utility allowance has fallen when electricity has risen in Conventional Public Housing? Cheryl Lord, representative of Nehlrod explained that in Conventional Public Housing there is only electric and natural gas to be distinguished from the Section 8 program whose charts reflect electric, natural gas, water and sewer. Commissioner Allen, asked, is there anything for air conditioning, how is the AC counted? Ms. Lord responded that Conventional Public Housing regulations do no provide for an allowance for air conditioning. Commissioner Safai asked why have utility allowances increased in all of the newer developments and decreased for the older developments? Ms. Lord responded that the HOPE VI sites include water and sewer. Commissioner Allen asked if the smart meters have helped and if the smart meters are still in Holly Courts? Did that factor into the rates? Tim Larsen, General Counsel of the Authority stated that the smart meters allow you to explore different methods of decreasing use and further, it gives you information on use. He stated further usage is what determines utility cost. Commissioner Smith asked if residents of the newer developments will be responsible for utilities? Ms. Lord responded that this decision is made by the Authority. Mr. Alvarez further stated that the Authority decides what the allowance will be whether it include water, sewer, gas and/or electricity. Barbara Smith, Administrator, added that there would not be individual meters for water and sewer and, therefore, no allowance for water or sewer. Mr. Schwartz asked what the impact would be if the Commission delays the resolution until the next meeting? Mr. Alvarez responded that there would be no impact to delay the resolution. Commissioner Smith requests that the resolution be postponed.

Public Comment:

None


Motion:

Commissioner Schwartz moved to approve Commissioner Hunnicutt seconded motion Vote: All approved in postponing the resolution to a later date.

2. [Authorization for the Executive Director to establish the Voucher Payment Standard Schedule for 2011/2012] Presented by Nicole McCray-Dickenson, Acting Director, Section 8 Department. Nicole McCray-Dickerson, Acting Director of the Section 8 Deparment, presents that there are no changes in the payment standard. Commissioner Schwartz asked if when you do your update of what the payment standards should be do you look at actual rent comparisons? What’s the methodology that you use? Ms. Dickerson explained HUD requires the VPS be set at a minimum of 90% of the HUD published Fair Market Rents (FMR). The Authority’s standard is at 99%. Commissioner Schwartz asked if the rent has been increasing shouldn’t we increase our payment standards so that our partners, tenants, and clients will be able to afford the escalating rents? Mr. Alvarez stated that the lease up rates for Section 8 are currently 99% to 108% depending upon which month we pick. The voucher program is driven budgetarily, not by rents, or how many units we lease up, so if the Authority raised the payment standard the Authority it would result in the Authority leasing up less families. Staff utilizes a methodology that leases up and maintains a 98% to 100% lease up rate. Public Comment:

None

Motion:

Commissioner Schwartz moved to approve Commissioner Hunnicutt seconded the motion Vote: All approved 3. [Results of operation for period ending August 31, 2011] presented by Roger Crawford, Special Assistant to the Executive Director, Executive Office. Roger Crawford, reported overall operations reflect a surplus of $1.7 million. The surplus results from the sale of a vacant lot at 2698 California Street. The Authority will use administrative reserves to cover the negative balance in the Section 8 Department. Staff recommends approval Commissioner Hunnicutt, asked if the Authority will be using the administrative fee to resolve the $281,000 short fall? Mr. Crawford, indicated we would be utilizing Section 8 Administrative Reserves to balance section 8, and the proceeds from the sale of the vacant lot will balance Public Housing. Commissioner Hunnicutt, how much are the administrative reserve funds? Herb Lum responded that the reserve balance is $1.1 million


Commissioner Schwartz asked how the Authority can sustain balancing the budget in the future without sellilng buildings? Mr. Crawford, responded that the Authority is planning ahead by setting the budget at the beginning of the year and reviewing the budget quarterly to make adjustments as needed. Commissioner Schwartz stated that we are in a position where this is not sustainable unless we have assets that we can continue selling every year. Commissioner Schwartz further commented that one of the areas where we were off between our budget and our actuals was the vacancy loss; why are we in this situation and what are we going to do differently? Mr. Crawford responded that the Authority is improving its budget plan and is estimating based on actual numbers. Commissioner Safai asked, asked how the Authority got to a vacancy loss of $1.4 million? Mr. Crawford, we didn’t have enough units we had budgeted 446,000 we will do a better job budgeting. Mr. Alvarez further responded that the Authority gave a poor estimate /forecast for the trend for uncollected rent. The Authority attributed it at a third of what it has trended over the last 5 years, which is one of the elements that HUD wants corrected. Commissioner Hunnicutt recommended a narrative delineating the recurring questions, i.e. “How are we doing with the vacancy rate” this would be helpful. Mr. Crawford agreed. Public comment: Lynn Daniels, not a resident of the Authority, requests that he get better housing. 4. [Effect of Federal Cuts on the San Francisco Housing Authority’s Operations for the FY 2012] Presented by Rodger Crawford, Special Assistant to the Executive Director, Executive Office. Roger Crawford, reported HUD has reduced the agency’s subsidy by $5.1. In order to balance the FY2012 budget the Authority initated a hiring freeze, will be ending the assignments of 32 temporary workers, 11 permanent positions and reducing the cost of other programs such as security outside legal expenses, insurance and summer activity programming. As a result of these proposed changes, the Authority will have a balanced budget. Commissioner Safai asked if, pursuant to the report, staff has begun meeting with representative labor? Mr. Crawford responded that on Monday, September 19, 2011 there was a meeting held with all of the represented labor groups to begin discussions about possible alternatives to staff reductions. Commissioner Safai asked, how many eligibility workers will there be after reducing five full-time positions? Mr. Crawford responds that he will have to look. Commissioner Safai asked how many plumbers will be affected? Mr. Crawford responds, currently there are 10, there will be 7. Commissioner Safai asks how many painters and glaziers will be


affected? Mr. Crawford responds that painters will go from 11 to 9 and glaziers from 3 to 2. Commissioner Safai asked the commissioners to consider the idea of giving labor the opportunity to come back with alternative solutions before the resolution is adopted. Commissioner Schwartz asked the Secretary if the Commission could adopt this budget to have an operating budget going into the FY 2012 as it is proposed today and come back and amend it should there be new information from any discussions that would cause us to make adjustments? Mr. Alvarez responded, yes. Commissioner Hunnicutt how security will be affected? Tim Larsen responded that the Authority will shift some of its funding from private security to the concierge program. This shift will allow the Authority to hire more residents into the concierge program. Commissioner Hunnicutt recalls the ED explaining that we are spending a sizable amount of money on SFPD, is this a separate category? Mr. Larsen, responded that the Authority will spend 1 million a year on police services, $1.1 million on private security for armed guards in high crime communities and the remaining balance of 700k is for the concierge program. Commissioner Hunnicutt asked is this what the Authority has been paying every year for this service? Have there been any increases because of security issues? Mr. Larsen responded that the SFPD is a million and private security has increased in the past 5 years but the concierge program is dramatically reducing the cost. Commissioner Hunnicutt asked for additional information on the insurance cost savings? Mr. Larsen responded that the Authority is improving at risk management resulting in the property insurance being reduced from over a million to around 700k. Further, the Authority is a founding member of a risk retention group and, as such, receives a check for $230k at the end of every fiscal year. Commissioner Saez asked with regards to the plumbers is this part of the negotiation that was concluded with the agency or are these new reductions that are being proposed in the new fiscal year? Mr. Alvarez responded that yes, the plumbers had a manning table which is a minimum work force and the commission purchased the right to not have that. None of the public housing properties are operating in a manner acceptable to HUD resulting in a loss of $1.5 million for two years totaling $3 million. The total reduction is $5.2 million, which the Authority is addressing by some of the following, not filling positions, ending temporary employment positions, a hiring freeze. Mr. Crawford explained that discussion with represented labor will continue. Commissioner Safai commended staff for handling staffing pressures but is requesting time for the Authority to negotiate with representative labor. Commissioner Safai requests that the other Commissioners delay the vote.


Commissioner Saez asked what would be the impact of delaying this vote until October? Is there a penalty by HUD if this resolution is delayed? Mr. Alvarez responded that there is no penalty by HUD and the Authority would operate under last years budget. Commissioner Allen requested that a subcommittee be assigned to address this issue? Mr. Alvarez responded that a subcommittee can be formed. Commissioner Schwartz confirms that there is no penalty if this resolution is delayed? Mr. Alvarez responded that he does not believe but that HUD has the final authority. Mr. Alvarez stated that approving this resolution would be followed by noticing employees pursuant to their agreements and, if the Commissioners don’t agree with this, it is recommended that this be carried over. Commissioner Saez clarifies that approving the resolution would begin the noticing procedure? Mr. Alvarez responds that yes, it would start the process. Mr. Crawford further states that a delayed vote resulting in a vote in October would be ok. However, if there is no agreement with the Unions in October, then this may further delay the process. Commissioner Safai confirmed that approving the resolution gives staff the authority to notice lay off and the budget is then sent to HUD? Mr. Alvarez responded that HUD does not approve the budget. Further, there is nothing improper if the Commission wants to delay the process. A delay makes it more difficult to for the Authority to act. Motion:

Commissioner Saez motions to approve the resolution. Commissioner Safai asked if the Commission would hear Public Comment. Commissioner Saez called for Public Comment.

Public comments: Lynn Daniels, individual on the waitlist requested information how the Authority re-occupies units and whether there is an allotment of units that are not being housed and need to be housed? Artese Williams asked had anyone considered how this budget, specifically security cuts, will affect the residents? Barbara Lopez, business representative for SEIU 1021, requested that staff create a process that insures unions are included in this process. Further, what is the 45 day timeline about how the proposed budget impacts the bargaining members? Authority Employee who works at Rosa Parks asked the Commission how long it will be before the Authority is closed because staff continues to be cut. Will there be a severance package? Abdul Kadir asked if a 3 day work week been considered? Commissioner Saez requests the budget resolution be presented earlier next year.


Commissioner Saez’s motion lacked a second. Motion:

Commissioner Safai motioned (a replacement motion) to postpone vote and carry item forward to next meeting of 10/13/11 Commissioner Hunnicutt seconded the motion Vote: All approved 5. [Report : HUD Corrective Action Plans for the Housing Voucher Program] Presented by: Pamela Palpallatoc and Nicole McCray, Acting Director of the Housing Choice Voucher Program (Formely Section 8) Commissioner Saez requested an update on progress/improvements made in Section 8 program. Pamala Pallpalotoc. the PIC reporting rate for august was 97% and the utilization for the HCV Program in August was 97% by unit and 99.9% by housing assistance payment expenses. The Authority continues to meet monthly with the Veterans Affairs Office and with the San Francisco HUD field office. The Authority is working collectively to reconcile the utilization reports with the Veterans Affair Administration as well as HUD. Staff is also finalizing procedures and policies for the upcoming SEMAP review and by September 30, the Authority will submit the tenant file error report for the RIM review. Commissioner Saez asked if the Authortiy is holding Veteran vouchers offline since it is only at 63% utilization? Ms. Pallpalatoc, responded this number should improve with the reconcililation process between the Authority’s records, the Veterans Administration and PIC. Further, the Authority is expecting this number to be at 100% soon. Commissioner Saez asks if the certification process is happening through the Authority’s department. Ms. Pallpalatoc responded, yes. Commissioner Schwartz asked when the Authority will be caught up with reexaminations and inspections? Nicole McCray-Dickerson responded that the Section 8 deparment is working on procedures and efficiency within the department.

Public comment:

None

Item 7:

Commissioners Comments Commissioner Allen asked if there have been subcommittees in the past because Mr. Allen would like to start a subcommittee? Further, Commissioner Allen wanted to annouonce a YMCA community event and potluck to benefit breast cancer Saturday at 9:00am at the Bayview YMCA. Commissioner Saez stated that the current set up of the Commission promotes public discourse and public presentations. Previously, there were ad hoc committees but they were not successful because there was little attendance. Commissioner Schwartz echoed Commissioner Saez’ comment that sub committees were not well attended in the past. Moreover, when information was presented to the Commission, the Commission did not feel fully informed.


Commissioner Allen requested that the Commission packett be provided earlier. Mr. Alvarez responded yes, the packet could be provided earlier but this could potentially change the timeframe of resolutions. Mr. Alvarez requested six day notice. Commissioner Allen commented that he felt the information regarding the budget should be provided earlier in the future. Commissioner Veronica Hunnicutt suggested that an orientation and/or communication between staff and Commissioners occur earlier for those resolutions with larger impacts. Commissioner Schwartz responded to the Authority employee at Rosa Parks worker clarifying that these cuts are coming from the US Congress, this is not a choice of the Authority. Further, the Authority is tying to maintain a high level of services within the budget provided.


Item 8:

Closed Session Closed session pursuant to GCS 54956.9 to receive advise from legal counsel on matters pertaining to Robert Coats, Painter

PRESENT: Mirian Saez, Vice Chair Matthew Schwartz, Commissioner Dorothy Smith, Commissioner Micah Allen, Commissioner Dr. Veronica Hunnicutt, Commissioner Ahsha Safai, Commissioner No decision were made and no vote was taken.

Item 9:

Adjournment by consensus 19:22



commission meeting minutes 092211