1. home and garden

HOUSING AUTHORITY OF THE
CITY AND COUNTY OF
Phil Arnold, Chairman
Jaci Fong, Committee Member
Patricia Thomas, Committee Member
Development and Finance Committee
Agenda
November 12, 2014
1815 Egbert Avenue
2nd Floor IT Room
San Francisco, California 94124
(415) 715-3954
Barbara T. Smith
Acting Executive Director
“The Mission of the San Francisco Housing Authority is to deliver safe and decent
housing for low income households and integrate economic opportunity for residents.”
1
SAN FRANCISCO HOUSING AUTHORITY
JOAQUIN TORRES, PRESIDENT
HOUSING AUTHORITY OF THE CITY AND COUNTY OF SAN FRANCISCO
Phil Arnold, Chairman
Jaci Fong, Committee Member
Patricia Thomas, Committee Member
Barbara T. Smith, Acting Executive Director
1815 Egbert Avenue 2nd Floor IT Training Room
SAN FRANCISCO, California 94124
www.sfha.org
SPECIAL MEETING NOTICE
Wednesday, November 12, 2014·8:30 a.m.
1.
The San Francisco Housing Authority holds its Development and Finance Committee (the “Committee”) meetings at
1815 Egbert Avenue, San Francisco, California 94124.
2.
Disability Access: 1815 Egbert Avenue is accessible to persons using wheelchairs and others with disabilities.
Assistive listening devices are available upon request. Agendas are available in large print. Materials in alternative
formats and/or American Sign Language interpreters will be made available upon request. Please make your request
for alternative format or other accommodations to the Department of Government Affairs and Policy (415) 715-3232
(V); (415) 715-3280 (“TTDY”) at least 72 hours prior to the meeting to help ensure availability.
3.
Disability Accommodations: To request assistive listening devices, real time captioning, sign language interpreters,
readers, large print agendas or other accommodations, please contact the Commission Clerk at (415) 715-3232 or
[email protected] at least 72 hours in advance of the hearing to help ensure availability.
4.
Agenda, minutes and attachments are available at www.sfha.org as well as the San Francisco Housing Authority
administrative office located at 1815 Egbert Avenue, San Francisco, California 94124. If any materials related to an
item on this agenda have been distributed to the San Francisco Housing Authority Development and Finance
Committee after distribution of the agenda packet, those materials are available for public inspection during normal
office hours at the San Francisco Housing Authority at 1815 Egbert Street San Francisco California 94124
5.
In order to assist the San Francisco Housing Authority’s efforts to accommodate persons with severe allergies,
environmental illness, multiple chemical sensitivity or related disabilities, attendees at public meetings are reminded
that other attendees may be sensitive to various chemical based products. Please help the San Francisco Housing
Authority accommodate these individuals.
6.
The use of electronic sound-producing devices at/during public meetings is prohibited. Please be advised that the
meeting Chairman may remove any person(s) responsible for the ringing or use of cell phones, pagers and similar
sound-producing electronic devices from the meeting room.
2
---------------------------------------------------------------------------------------------------AGENDA
------------------------------------------------------------------------------------------------------------------------------ORDER OF BUSINESS
1. Call to order
2. Approval of Minutes
a. Special Meeting: October 15, 2014
3. General Public Comment on subject matters related to the Development and Finance Committee
4. Development Items
a. Action Items: Committee recommendation to the Board of Commissioners
(1) [RESOLUTION APPROVING AND AUTHORIZING THE SUBMITTAL OF A
PARCEL MAP APPLICATION TO THE CITY AND COUNTY OF SAN
FRANCISCO DEPARTMENT OF PUBLIC WORKS TO CREATE (I) THREE
SEPARATE PARCELS AT 430 AND 440 TURK STREET, SAN FRANCISCO,
CALIFORNIA (THE "PROPERTY"); A RESIDENTIAL PARCEL, A
COMMERCIAL PARCEL, AND A LAND PARCEL; AND (II) CERTAIN
EASEMENTS AND LICENSES FOR PARKING AND UTILITIES RELATED
TO SUCH PARCELS: IN CONNECTION WITH THE RENOVATION AND
REHABILITATION OF THE PROPERTY AT CLUSTER 4 (TENDERLOIN
AND SOUTH OF MARKET CLUSTER) UNDER THE UNITED STATES
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT RENTAL
ASSISTANCE DEMONSTRATION (RAD) PROGRAM]
Presented by: Alicia Sisca, Director of Housing Modernization and Development
Public Comment(s)
5. Finance Items:
a. Action Items: Committee recommendation to the Board of Commissioners
(1) [RESOLUTION APPROVING AND AUTHORIZING THE EXPENSE OF
ANNUAL MICROSOFT ENTERPRISE AGREEMENT FOR YEAR ENDING
NOVEMBER 30, 2011 IN THE AMOUNT OF $93,015]
Presented by: David Rosario, Director of Information Technology
Public Comment(s)
(2) [RESOLUTION APPROVING AND AUTHORIZING THE ACTING
EXECUTIVE DIRECTOR TO INCREASE THE DOLLAR VALUE OF THE
CONTRACTS WITH SOUTHWEST HAZARD CONTROL, INC. (CONTRACT
#13-0008) AND QUALITY ASBESTOS CONTROL, INC. (CONTRACT #13-0009)
3
BY $10,000 EACH FOR THE ONGOING NEED FOR ABATEMENT OF LEAD
BASED PAINT FOR A TOTAL CONTRACT VALUE WITH A NOT TO
EXCEED OF $35,000 EACH THROUGH JANUARY 31, 2015]
Presented by: Soloman Gebala, Chief Procurement Officer
Public Comment(s)
(3) [RESOLUTION APPROVING AND AUTHORIZING THE ACTING
EXECUTIVE DIRECTOR TO ENTER INTO A CONSULTING CONTRACT
WITH FORD & BONILLA TO PERFORM AN OVERALL COMMUNICATIONS
ASSESSMENT,
DEVELOP
COMMUNICATION
AND
RESIDENT
ENGAGEMENT
PLANS,
ACTIVELY
PARTICIPATE
IN
THE
IMPLEMENTATION OF THE PLANS, ACT AS THE POINT OF CONTACT
FOR EMERGENCY COMMUNICATIONS AND ASSIST IN RE-IMAGING THE
AUTHORITY FOR A ONE (1) YEAR CONTRACT WITH THE OPTION OF UP
TO FOUR, ONE (1) YEAR RENEWALS WITH A CONTRACT VALUE NOT-TOEXCEED $ 151,840 ANNUALLY]
Presented by: Velma Navarro, Deputy Executive Director/Chief Operating Officer
Public Comment(s)
(4) [RESOLUTION APPROVING AND AUTHORIZING THE ACTING
EXECUTIVE DIRECTOR TO ENTER INTO A CONSULTING CONTRACT
WITH IFH SOLUTIONS, INC. TO SERVE AS A DEDICATED SOFTWARE
CONVERSION PROJECT MANAGER PROVIDING OVERSIGHT AND
CONVERSION MANAGEMENT OVER THE AUTHORITY’S SOFTWARE
CONVERSION FROM GILSON SOFTWARE TO EMPHASYS SOFTWARE
FOR A PERIOD OF ONE (1) YEAR WITH, CERTAIN OPTIONS TO EXTEND
UNTIL PROJECT COMPLETION, IN A CONTRACT AMOUNT NOT-TOEXCEED $300,000]
Presented by: Velma Navarro, Deputy Executive Director/Chief Operating Officer
Public Comment(s)
(5) [RESOLUTION APPROVING AND AUTHORIZING THE ACTING
EXECUTIVE DIRECTOR TO APPROVE THE WRITE-OFF OF VACATED
TENANT ACCOUNTS RECEIVABLE IN THE AMOUNT OF $351,549 AND
BANKRUPTCY DISCHARGED DEBT IN THE AMOUNT OF $13,108 FOR THE
FISCAL YEAR ENDED SEPTEMBER 30, 2014]
Presented by: Velma Navarro, Deputy Executive Director/Chief Operating Officer
Public Comment(s)
4
6. Standing items
1.
SFHA Monthly Budget to Actual Report, Presented by Carl Gayden, Chief Strategic
Planning and Budgeting Officer
2.
Update on Financial Technical Assistance items, including; Audit Tracking Tool, Inter
program Repayment Agreement, Chart of Accounts Revision, Presented by Deloitte
Team
3.
Procurement Update, Presented by Solomon Gebala, Chief Procurement Officer
7. Adjournment
5
DEVELOPMENT AND FINANCE COMMITTEE MEETING MINUTES
HOUSING AUTHORITY OF THE CITY AND COUNTY OF SAN FRANCISCO
October 15, 2014
SCHEDULED: 8:30AM, 2nd Floor IT Training Room, 1815 Egbert Ave, San Francisco, California
94124
COMMISSIONERS PRESENT:
Phil Arnold, Chairman
Jaci Fong, Committee Member
COMMISSIONERS EXCUSED:
Patricia Thomas, Commissioner
Item 1:
Meeting called to order
Chairman Arnold called the meeting to order at 8:45 AM
Item 2:
Approval of Minutes
a. Special Meeting: August 27, 2014
Commissioner Arnold explained that item four of the minutes, the RESOLUTION
APPROVING THE 2015 BUDGET/2016 PROJECTION did not have an action
listed because it was recommended to the full Commission.
Public Comment

Motion:
Item 3:
First:
Commissioner Fong moved to approve
Second:
Commissioner Arnold
Vote:
Ayes:
Commissioner Fong and Arnold
Nay:
None
Motion Passed
General Public Comment on subject matters related to the Development and
Finance

Item 4:
None
None
Informational Item
a. Presentation On The Joint Draft Environmental Impact Report/Environmental Impact
Statement (EIR/EIS) For The Sunnydale/Velasco Hope SF Master Plan Project (The
Proposed Redevelopment Of The Sunnydale/Velasco Housing Developments),
Prepared By The San Francisco Planning Department In Cooperation With The City
Of San Francisco’s Mayor’s Office Of Housing And Community Development
(MOHCD), As Lead Agencies Under California Environmental Quality Act And
National Environmental Policy Act, Respectively
6
Presented by: Project Manager, Toni Autry; Mercy Housing and Related
Development Team: Ramie Dare and David Fernandez, Project Director of the
Sunnydale Revitalization Project.
Ms. Dare summarized Mercy Housing’s master plan for the development of the
Sunnydale environment. She stated that Mercy Housing planned to build new
housing units, a community center, new grocery stores, and new parks. Mr.
Fernandez summarized Mercy Housing’s plan to transform the Sunnydale
community into a safer, healthier, and better educated community. He stated that the
Sunnydale Revitalization Project’s team had already built a successful Wellness
Center and had held many popular community events. Mr. Fernandez stated that the
Project’s efforts may have contributed to the reduction in Sunnydale’s crime rate in
2014.
Commissioner Fong asked if the proposed Sunnydale park extensions would be
discussed with San Francisco Parks and Recreation (Parks and Recs). Ms. Dare
responded that the park extensions would not use Parks and Recs land. She explained
that all park extensions would utilize land belonging to the Authority. Commissioner
Fong asked if there would be one entity maintaining the land. Ms. Dare stated that
Mercy Housing had considered utilizing the new markets tax credits as a means for
financing the capital. She stated that there would be one entity for the new markets
tax credits and that this entity would maintain the park extensions. Commissioner
Fong asked how wide the new streets would be. Ms. Dare stated that the streets
would have one lane in each direction and parking and biking lanes on the side.
Commissioner Arnold expressed concern that Mercy Housing staff had presented a
capital funding plan, but had not presented maintenance or operations funding plans
for the Sunnydale recreation center and park extensions. Ms. Dare stated that the
funding and maintenance for the Sunnydale renovations had yet to be determined.
She explained that Mercy Housing would need to conduct a new study of the housing
market rate before maintenance and funding plans could be completed.
Commissioner Arnold asked how Mercy Housing planned to staff the recreation
center. Ms. Dare stated that various community organizations would assist Mercy
Housing in their staffing endeavors. She stated that Mercy Housing would first have
to determine the types of activities that would be held at the recreation center before
determining the center’s funding and staffing needs.
Commissioner Arnold asked about the amount of available open space in the
Sunnydale neighborhood. Ms. Dare stated that there were 16 acres available.
Commissioner Arnold asked why Mercy Housing’s data showed that Sunnydale had
half an acre of land. Ms. Dare explained that the half acre included three Sunnydale
play spaces. Commissioner Arnold asked if the space between the houses was being
counted in the 16 acre total. Ms. Dare stated that it was not. She explained that the
open space between housing units was not considered useable. Commissioner Arnold
expressed concern that the 16 acres of available space would be used to
accommodate the new housing units in Mercy’s Housing master plan. He expressed
concern that there would not be enough space to develop park extensions after the
units were built.
Commissioner Arnold asked where the affordable and public housing units were
going to be built. Ms. Dare stated that the Sunnydale Revitalization Project’s staff
had already identified the blocks they would be using. She explained that staff
wanted to integrate public housing and affordable/market rate housing.
7
Commissioner Arnold expressed concern that there were no large retail units in the
Sunnydale neighborhood. He expressed concern that the lack of retail units would
limit the residents' access to food sources. Ms. Dare stated that the master plan
allowed for 10 to 16 thousand square feet of retail. She stated that this would allow
for small family-owned retail stores. Ms. Dare explained that the Sunnydale
neighborhood did not have enough room for a large retailer, and that there were
larger retail stores within a mile of the community.
Commissioner Arnold asked where Mercy Housing was receiving their funding for
the Sunnydale Revitalization Project. Ms. Dare stated that the funding came from the
Mayor’s Office of Housing and Community Development (MOHCD). Commissioner
Arnold asked how the Wellness Center was being staffed. Mr. Fernandez stated that
the Department of Public Health was staffing the Wellness Center. Commissioner
Arnold asked if this was a long or short-term arrangement. Mr. Fernandez stated that
it was a long-term arrangement.
Commissioner Arnold asked about the Project’s overall budged and how it would be
funded. Ms. Dare stated the total cost would be one billion dollars. She stated that the
funding process would begin with acquiring affordable housing unit funding from
various government institutions: low income housing tax credit proceeds, MOHCD,
Rental Assistance Demonstration (RAD) funding, etc. Ms. Dare explained that the
market rate units would be self-sustaining. She indicated that MOHCD would
communicate with infrastructure-related city departments to find funding for streets
improvement, running the community center, and organizing neighborhood utilities.
Commissioner Arnold asked how long the Project would take. Ms. Dare stated that it
would take 15 to 18 years. Commissioner Arnold asked how Mercy Housing would
proceed with the Project if they could not obtain one billion dollars in funding. Ms.
Dare stated that the master plan contained the maximum amount of possible
renovations and that the number of renovations could be adjusted to accommodate
funding. Commissioner Arnold asked if the community of Sunnydale was considered
a subgroup of Visitacion Valley. Mr. Fernandez stated that Sunnydale and Visitation
Valley were considered separate communities.
Commissioner Arnold recommended the project managers consult with the Fire
Department, the Parks and Recreation department, the San Francisco Planning
Department, and the MOHCD. Ms. Dare stated that staff was already working with
these departments.
Item 5:
Development Items
a. Action Items: Committee Recommendation to Board of Commissioners
1. [RESOLUTION APPROVING AND AUTHORIZING THE ACTING
EXECUTIVE DIRECTOR TO NEGOTIATE AND EXECUTE
DOCUMENTS AND TAKE ACTIONS PERTAINING TO THE
DEVELOPMENT OF HUNTERS VIEW PHASE IIA(1) (107
MULTIFAMILY HOUSING UNITS), HUNTERS VIEW PHASE IIA(2)
(PRIVATE
OPEN
SPACE
AND
PRIVATE
STREET
IMPROVEMENTS), AND HUNTERS VIEW PHASE IIB (188
AFFORDABLE AND FOR-SALE HOUSING UNITS AND A PORTION
8
OF STREET
AND INFRASTRUCTURE
IMPROVEMENTS);
INCLUDING ANY DOCUMENT REQUIRED AS PART OF THE
UNITED STATES DEPARTMENT OF HOUSING AND URBAN
DEVELOPMENT (HUD)- RENTAL HOUSING DEMONSTRATION
(RAD)
PROGRAM,
ASSIGNMENT
AND
ASSUMPTION
AGREEMENT(S), A PARTIAL RELEASE OF DECLARATION OF
TRUST, AMENDMENTS TO GROUND LEASE AGREEMENT(S),
AMENDMENTS TO PREDEVELOPMENT LOAN DOCUMENTS,
ESTOPPEL AGREEMENT(S), SUBORDINATION AGREEMENT(S)
AND OTHER ANCILLARY DOCUMENTS RELATED TO HUNTERS
VIEW - PHASE II; AND TO SUBMIT TO HUD CERTAIN
DEVELOPMENT AND FINANCING DOCUMENTS RELATED TO
HUNTERS VIEW PHASE II]
Presented by: Project Manager, Toni Autry
Catherine Etzel, representative of The John Stewart Company, explained that staff
needed to submit the proper documentation to the Department of Housing and Urban
Development (HUD) to ensure the closing of a construction loan in December. She
explained that the construction loan would enable the Authority to build more
affordable housing units and open spaces in Hunter’s View Phase’s I and II.
Commissioner Arnold asked why staff had provided a breakdown of financing for
property 2A I and not for properties 2A II or 2B. Ms. Etzel explained that 2A II and
2B would be financed separately through infrastructure sources. She explained that the
separate sources of funding would not be reflected in the data. Commissioner Arnold
asked for the names of the sources. Ms. Etzel stated that infrastructure funding would
be provided by Infill Infrastructure Grant Program (IIG) and the Office of Community
Investment and Infrastructure (SFOCII). Commissioner Arnold asked for Ms. Etzel to
explain Prop. AA. Ms. Etzel explained that Prop. AA was a measure passed to
increase access to transit. She stated that staff would be following the requirements of
Prop. AA and improve street access to bus stops in the Hunter’s View areas. Ms. Etzel
indicated that the funding for this would be provided by the San Francisco County
Transportation Authority (SFCTA).
Commissioner Arnold asked if staff planned to move Phase III tenants to the
replacement facilities at Phase 2A I. Ms. Etzel stated staff intended to move Phase III
tenants to the Phase 2A I replacement facilities. Commissioner Arnold asked if staff
intended to open up the isolated Phase III property. Ms. Etzel stated that staff would
consider it. Commissioner Arnold asked if any alterations to the construction plan
had been made. Ms. Etzel stated that staff intended to extend the term of the ground
lease. She explained that the type of construction alterations would depend on how the
ground lease was amended.
Commissioner Fong requested that amendments be brought before the Commission
before they were finalized. Commissioner Arnold asked if there was a standard term
for ground leases. Acting Executive Director Barbara Smith explained that the length
and the term of each ground lease depended on the initial negotiations, as well as the
government standards that pertained to each lease. Pam Sims, Development specialist
for SFCII, explained that ground leases were drawn up for 50 years. She explained
9
that ground leases provided an option of adding 49 years, which helped to ensure
long-term affordability for residents.
Commissioner Fong stated that she would allow the Authority to extend ground leases
if amendments to the contract stayed within the parameters originally drawn up and no
other changes were made. Dianne Jackson McLean of Goldfarb and Lipman explained
that ground lease terms were extended in order to guarantee that the debt on the
property could be paid off within the term of the ground lease. Commissioner Arnold
asked why the developers were not requesting a shorter lease period. Ms. Jackson
McLean explained that ground lease contracts did not have to be extended and that the
49-year extension was optional. Ms. Smith stated that the investors extended the lease
to ensure that the debt could be fully repaid by the low-income families living in the
prosperities.
Commissioner Fong asked if the Hunter’s View resolution was time-sensitive and
specific to Ms. Smith. Ms. Jackson McLean stated that the Phase II contract was time
sensitive. She explained that staff intended to close Phase II contract negotiations in
December 2014. Commissioner Fong asked if the resolution authorized long-term
changes to the ground lease. Ms. Etzel explained that the resolution did not authorize
long-term changes.
Public Comment
None
Motion:
First:
Second:
Vote:
Ayes:
Nay:
Commissioner Fong recommended to move for approval on the Consent
Calendar of the Board of Commissioners
approval
Commissioner Arnold
Commissioner Fong and Arnold
None
(2) [RESOLUTION OF THE HOUSING AUTHORITY OF THE CITY AND
COUNTY OF SAN FRANCISCO (THE “AUTHORITY”) MAKING FINDINGS
AND DECLARING OVERRIDING CONSIDERATIONS REQUIRED
PURSUANT TO THE CALIFORNIA ENVIRONMENTAL QUALITY ACT,
AND APPROVING AND AUTHORIZING THE ACTING EXECUTIVE
DIRECTOR TO ENTER INTO (1) A MASTER DEVELOPMENT
AGREEMENT (“MDA”) BY AND AMONG THE AUTHORITY, THE OFFICE
OF COMMUNITY INVESTMENT AND INFRASTRUCTURE, SUCCESSOR
AGENCY TO THE REDEVELOPMENT AGENCY OF THE CITY AND
COUNTY OF SAN FRANCISCO, DOUBLE ROCK VENTURES, LLC, AND CP
DEVELOPMENT
CO.,
LP,
AND
(2)
OTHER
DOCUMENTS
CONTEMPLATED BY THE MDA FOR THE CONSTRUCTION AND
DEVELOPMENT OF THE ALICE GRIFFITH REPLACEMENT HOUSING
DEVELOPMENTS]
Presented by: Project Manager, Tony Autry
Elizabeth Colomellow, representative of the Office of Investment and Infrastructure,
gave a summary of the plans for the development of the Alice Griffith housing. She
10
explained that staff planned to build 256 public housing replacement units and 248
new tax credit units.
Commissioner Arnold asked if the replacement housing data would be separated from
the tax credit housing data. Ms. Colomellow stated that staff had already separated the
data. Commissioner Arnold asked for the location of the Phase II housing. Ms.
Colomellow stated that Phase II housing was located on block 4, to the left of Egbert.
Commissioner Arnold if the state parkland was located to the upper right of the Alice
Griffith housing. Ms. Colomellow explained that the Authority had recently bought the
state parkland around Alice Griffith. Commissioner Arnold asked who was responsible
for maintaining the Yosemite Slough property. Ms. Colomellow stated that the
California State Parks Foundation was responsible for Yosemite Slough. Commissioner
Arnold asked the subsidy amount provided by the Lennar Corporation. Ms.
Colomellow stated that Lennar provided a subsidy of 40.6 million dollars for the public
housing replacement cost.
Commissioner Fong asked how the Authority budget was being affected by the
proposed unit construction. Ms. Colomellow stated that the costs had increased over
time. She assured the Committee and that the construction contract allowed for cost
increases.
Public comment
None
Motion:
First:
Commissioner Fong recommended to move for approval on the Consent
Calendar of the Board of Commissioners
approval
Second: Commissioner Arnold
Vote:
Ayes:
Commissioner Fong and Arnold
Nay:
None
Item 6:
Finance Items:
a. Committee recommendation to the Board of Commissioners
(1) [RESOLUTION AUTHORIZING THE ACTING EXECUTIVE DIRECTOR TO
INCREASE CONTRACT NUMBER 12-0039 WITH RENNE, SLOAN,
HOLTZMAN, SAKAI BY $200,000 FOR CONTINUED LEGAL SERVICES
FOR LABOR NEGOTIATIONS ASSOCIATED TO RENTAL ASSISTANCE
DEMONSTRATION (RAD) PROGRAM AND OTHER RELATED AREAS
FOR THE SAN FRANCISCO HOUSING AUTHORITY
THROUGH
DECEMBER 31, 2014]
Presented by: Solomon Gebala, Chief Procurement Officer
Mr. Gebala explained that the proposed resolution would provide an addition $200,000
to extend the services of Renne Sloan through the end of the completion of the RAD
conversion project. He stated that the contract extension would add an additional law
firm as a subcontractor. Commissioner Arnold asked the source of funding for the
11
proposed $200,000. Mr. Gebala stated that the funding would be provided by capital
funds.
Commissioner Arnold asked Mr. Gebala to explain the subcontractor’s connection with
the RAD program. Mr. Gebala stated that the subcontractor was an expert in the field
of trust liability. Commissioner Arnold asked if the contract extension was an
appropriate capital budget expense. Ms. Smith explained that trust liability fell under
the category of operations, not capital. Commissioner Arnold expressed concern that
capital funds were being used to support the contract extension. He suggested that a
different fund source would be more appropriate. Carl Gayden, Chief Strategic
Planning & Budget Officer, stated that there were funds in the 2015 budget to
accommodate the contract extension. Commissioner Arnold asked if the budget for the
contract was being increased to fund the subcontractor. Mr. Gayden explained that the
contract extension allowed the Authority to continue employing Renne Sloan’s services
and did not include the services of the subcontractor. Commissioner Arnold asked if the
resolution would extend the term of the Renne Sloan contract. Mr. Gebala stated that
the resolution would carry the Authority until the end of 2014, until a new contract
could be completed. Commissioner Arnold asked whether the additional $200,000
would be paid to Renne Sloan or to the subcontractor. Mr. Gebala stated that it would
be paid to Renne Sloan, who would then pay the subcontractor. Commissioner Arnold
asked if Renne Sloan would collect a management fee before paying the subcontractor.
Mr. Gebala stated that Renne Sloan had not disclosed the information.
Commissioner Arnold recommended that the operations budget be used to fund the
Renne Sloan contract extension in lieu of the capital funds. Mr. Gebala stated that the
majority of RAD funding had come from capital funds and that Renne Sloan’s services
contributed to the RAD conversion process. Mr. Gebala stated that he would clarify
this matter and bring it before the Commission at the next meeting.
Public comment
None
Motion:
First:
Second:
Vote:
Ayes:
Nay:
Commissioner Fong recommended the item to Board of Commissioners
without recommendation
Commissioner Arnold
Commissioner Fong and Arnold
None
8. Standing items
1.
SFHA Monthly Budget to Actual Report
Presented by: Carl Gayden, Chief Strategic Planning & Budget Officer
Mr. Gayden provided a summary of the preliminary data for fiscal year 2014.
Commissioner Arnold asked why the statistics for the Public Housing and Housing
Choice Voucher (HCV) operating budgets were negative for the month but positive for
the year. Mr. Gayden stated that it had been caused by an increase in maintenance
12
expenses during the final months of fiscal year 2014.
Commissioner Fong expressed concern regarding the increased Public Housing
expenses during September 2014. Mr. Gayden stated that staff had expected a loss of 1.3
million dollars and that additional maintenance costs had exceeded this expectation by
$635,000. He stated that the expense increase had been the result of hiring additional
workers to handle work order backlogs.
Mr. Gayden stated that the Authority’s unit rental income had been reduced by
$760,000 in September 2014. He explained that the adjustments had been made to
account for an error that had occurred over a 24-month period. Commissioner Arnold
asked if it was a one-time adjustment. Mr. Gayden said that it was. Commissioner
Arnold requested clarification on the nature of the error. Mr. Gayden stated the
Authority had been reporting security deposit revenues as rent. He indicated that staff
had discovered this error and had made the necessary corrections. Commissioner Arnold
asked if the $760,000 reduction was being done to replenish rental security deposits. Mr.
Gayden stated that this was correct. Commissioner Arnold asked if the Authority had
other revenues in security deposit accounts. Josephine Tam, Chief Accounting Officer,
stated that the security deposit issue had occurred over a 2-year period. She explained
that the adjustment for the error had been calculated in one lump sum and added to the
data for September 2014. Ms. Tam stated that the lump sum was not an accurate
reflection of the security deposit amount, which amounted to 1.3 million dollars.
Commissioner Arnold asked whether the issue had been the result of a system or a
human error. Ms. Tam stated that it had been a system error. Commissioner Arnold
asked why staff had continued to use the same system to calculate data. He asked how
staff could ensure the error would not occur again. Ms. Tam stated that staff would
monitor and reconcile the system data on a monthly basis.
Mr. Gayden reported that maintenance salaries had been over budget in 2014 due to
hiring additional workers for the work order backlog. He indicated that there had only
been 24 back logged work orders open at the end of September 2014. Commissioner
Arnold recommended that the Deliotte team report the work order data in their monthly
report to HUD. Ms. Smith stated that the work order reports had been forwarded to
HUD.
Commissioner Arnold asked why the maintenance salaries had been over budget and the
maintenance materials had been under budget. Mr. Gayden stated that the Authority had
moved a large sum of money to the capital funds to cover maintenance costs. He
explained that the transfer would not be reflected in the 2014 budget and that it had a
huge impact on staff’s variance percentage. Commissioner Arnold recommended that
the capital budget be integrated with the operations budget.
Mr. Gayden explained that craft maintenance hours had been lower than projected for
September 2014. Commissioner Arnold asked if fewer hours indicated less demand for
service. Mr. Gayden stated that hours had been lower because the Authority had hired
craft workers from the Public Housing rather than the Central Office Cost Center
(COCC). Commissioner Arnold expressed concern about the declining number of hours
and asked if the decline had been the result of employing too many craft workers. Mr.
Gayden responded that staff would examine the issue.
Ms. Smith explained that the COCC budget was based on staffing. She explained that
assigning public housing staff to a housing property would cause charges to be
transferred to public housing rather than COCC.
13
Commissioner Arnold asked who was tracking the changes in maintenance staffing. Ms.
Smith responded that the Finance Department was tracking this information.
Commissioner Arnold asked if the Authority was hiring new workers to replace the
COCC workers. Ms. Smith responded that the Authority had reorganized maintenance
staff and had not hired many new employees.
Commissioner Arnold expressed concern regarding the statistics for the public housing
and HCV operating budgets, which had been negative for the month but positive for the
year. He asked how staff indented to correct this issue. Mr. Gayden stated that he was
unsure what the answer to this problem would be. Commissioner Arnold recommended
that staff set up a reserve for the operations budget. He also recommended that staff
create a fund for health care liability.
Public comment
None
b.
Update on Financial Technical Assistance items, including; Audit Tracking Tool,
Interprogram Repayment Agreement, Chart of Accounts Revision
Presented by: Deloitte and Touche Representative, Mary Beth Neville
Ms. Neville stated that several items had been submitted to HUD for the approval of
deadline extensions. Commissioner Arnold asked when staff could expect to hear back
from HUD regarding the extensions. Ms. Smith stated that it would be discussed at the
staff’s next financial meeting with HUD.
Kyle Dean, representative of the Deloitte Team, stated there were several programs – the
Disaster Voucher Program (DVP), the Community Development Block Grant/Special
Purpose program, the Housing Opportunities for Persons with AIDS (HOPWA) and
state and local programs – with debt balances under one million dollars. He explained
that these would be paid off using excess cash and would be included in the Authority’s
repayment agreement with HUD. Commissioner Arnold asked why HOPWA’s debt
amount was significantly smaller than that of the other programs. Mr. Dean stated that
the legal settlement balances associated with HOPWA would be forgiven and would not
be included in the repayment agreement. Ms. Neville stated that the repayment
agreement would ensure that all public housing developments would be able to manage
their debt after the RAD conversion.
Commissioner Arnold asked if the public housing debt included the debts for mod rehab
and HCV. Mr. Dean responded that it did.
Commissioner Arnold asked if the excess HOPE VI balances would be moved to public
housing. Mr. Gayden stated the balances would be moved. Ms. Smith recommended that
the surplus be used for a reserve fund.
Commissioner Fong asked if there was a time limit for using the HOPE VI funds. Ms.
Smith stated that there was no time limit.
Public comment
None
14
c.
Procurement Update
Presented by: Chief Procurement Officer, Solomon Gebala
Mr. Gebala stated that staff was currently in negotiations with Emphasys Software
regarding the acquirement of the Authority’s new computer system. He explained that
staff had also been working on extending the legal contract with Renne Sloan and
procuring 179D tax credits for energy efficiency.
Mr. Gebala stated that staff had attempted to acquire the tax credits by “piggy backing”
off of other companies. Commissioner Arnold asked why the Authority would “piggy
back” off of other companies to obtain tax credits. Mr. Gebala stated that the Authority
was a non-profit organization and therefore ineligible to receive tax credits. Ms. Smith
explained that Ameresco applied for the tax credits and then shared the equity with the
Authority. She stated that this was an unusual funding option available to the Authority
that was written into the tax code.
Public comment
No comment
Item 7:
Adjournment
Meeting Adjourned at 11:54 PM
15
STAFF REPORT
SAN FRANCISCO HOUSING AUTHORITY BOARD OF COMMISSIONERS
Agenda Category:
Agenda Title:
Action Item – Housing Development and Modernization Department
RESOLUTION APPROVING AND AUTHORIZING THE SUBMITTAL OF A
PARCEL MAP APPLICATION TO THE CITY AND COUNTY OF SAN
FRANCISCO DEPARTMENT OF PUBLIC WORKS TO CREATE (I) THREE
SEPARATE PARCELS AT 430 AND 440 TURK STREET, SAN FRANCISCO,
CALIFORNIA (THE "PROPERTY"); A RESIDENTIAL PARCEL, A
COMMERCIAL PARCEL, AND A LAND PARCEL; AND (II) CERTAIN
EASEMENTS AND LICENSES FOR PARKING AND UTILITIES RELATED
TO SUCH PARCELS: IN CONNECTION WITH THE RENOVATION AND
REHABILITATION OF THE PROPERTY AT CLUSTER 4 (TENDERLOIN
AND SOUTH OF MARKET CLUSTER) UNDER THE UNITED STATES
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT RENTAL
ASSISTANCE DEMONSTRATION (RAD) PROGRAM
Presented By:
Alicia Sisca, Director, Housing Development and Modernization Department
SUMMARY:
In 1987, the Housing Authority of the City and County of San Francisco (the "Authority") developed a
mixed residential/office building at 430/440 Turk Street (the “Development”). Until a couple of years
ago, the Authority used most of the first two floors of the Development as their administrative offices,
and the Board of Commissioners of the Authority held its meetings in the meeting chambers at this
location. In addition the Authority owned and managed an 89-unit affordable public housing apartment
complex for very low income seniors and handicapped residents located on the seven floors above the
commercial space area (the “Senior Housing Project”). The Development also includes a resident-serving
lobby on the ground floor and a basement with parking stalls, mechanical rooms, and storage areas.
The Authority moved its administrative offices to 1815 Egbert Avenue.
[Continued on Page 2]
16
Attachments:
I-Resolution
II-Air Right Parcel
A copy of any attached documents is available at the clerk’s desk.
DEPARTMENT’S REQUESTED ACTION:
Staff recommends that the Development and Finance Committee recommends approval of the
Resolution to the Board of Commissioners of the Authority.
ACTING EXECUTIVE DIRECTOR’S RECOMMENDATION:
I concur with staff recommendation
Action Item No: 1
Date: November 12, 2014
17
As part of the re-envisioning strategy, the Authority, with the assistance of the City and County of San
Francisco (the “City”) applied and received approval from the United States Department of Housing and
Urban Development (“HUD”) to convert much of the Authority's portfolio, including the Senior Housing
Project from public housing units to units receiving financial assistance through the HUD Rental
Assistance Demonstration (“RAD”) program. Under the RAD program, public housing developments are
converted to private ownership, receive Project Based Section 8 Vouchers for the housing units, and are
able to attract private financing, including tax exempt bonds and proceeds for low-income housing tax
credits, to make much needed capital improvements to the developments. In January 2013, HUD
approved the conversion of the Senior Housing Project into a RAD funded project. In order to enter into
a ground lease of for the Senior Housing Project for the RAD conversion with a private developer, a
separate legal parcel is required pursuant to the California Subdivision Map Act, as implemented by the
City’s, Department of Public Works (“DPW”). The separate parcels are also required to secure the
financing that the Cluster 4 Team intends to secure for the renovation of the Senior Housing Project.
Such financing includes proceeds from low income housing tax credits, tax-exempt bonds and other
financing. Cluster Team 4 consists of Tenderloin Neighborhood Development Corporation ("TNDC"),
Community Housing Partnership, and Glide Community Housing. TNDC is the lead developer for this
project.
To accomplish the proposed renovation of the Senior Housing Project, the residential portion needs to be
separated from the office portion through an Air Rights Parcel. There will be no change of use to the
buildings. The residential parcel will be subject to regulatory agreements from the HUD under the RAD
Program, the City through its financing, and the State under both the low income housing tax credit
program and tax-exempt financing.
Proposed Parcels
Three parcels will be created through the proposed Air Rights Parcel Map (See Attachment II)
Parcel A – Land
Parcel B – Commercial/Office
A portion of floor 1
All of floor 2
Parcel C – Residential
All of basement
A portion of floor 1
(No portion of floor 2)
All of floors 3 through 9
Parcel B and Parcel C each will include reciprocal easements to provide access for parking;
access and maintenance of utilities, pedestrian access and similar uses.
The Authority will retain ownership of both the land, Parcel A, and the commercial/office space in Parcel
B. The Authority intends to transfer Parcel C, the residential portion of the building, to an affiliate of the
TNDC, which will rehabilitate, operate and maintain the Senior Housing Project.
18
Other Proposed Improvements
Lobby
Separate entrances will be maintained for the commercial office and the residential portions of the
building. There will be no change to the existing entrance to the commercial office portion.
The lobby area currently serving the residential portion of the building will be expanded to provide
sufficient space to meet the tenant and management program needs. The proposed lobby will include one
additional property manager’s office, two services offices, a new kitchen and a dedicated Community
Meeting Room to accommodate up to 60% of the senior housing’s residents. Residents may have access
to the former Board of Commissioners meeting room. Proposed improvements also include reconfiguring
the residential and commercial areas of the lobby.
Mechanical
The building mechanical systems will be separated between the residential and office parcels where
feasible or devices added to measure the usage by parcel. A reciprocal easement agreement will be
prepared which will set forth the obligations and responsibilities for the operation and maintenance of the
mechanical systems. Costs will be allocated between the owners of Parcel B and C.
Parking
There are currently 22 parking stalls in the basement. The proposal is for the entire basement to be
included in the Residential Parcel and parking stalls allocated to the Commercial/Office parcel through an
easement agreement. Construction of concrete shear walls to address seismic concerns will reduce the
number of stalls to 17. Historically, 10 stalls have been assigned to residents. The proposal is to allocate
9 stalls to the Commercial /Office and retain 8 stalls for Residential use.
Parcel Map Process
In connection with the proposed three parcels, an application must be submitted to the Department of
Public Works. Upon submittal of the application, Mr. William Blackwell, Chief Surveyor with the
Bureau of Street-Use and Mapping in the Department of Public Works will prepare the proposed Parcel
Map and coordinate the Parcel Map process on behalf of the Authority and the Development Team. The
application must be signed by the owner of the property, which in this case is the Authority. The staff of
the DPW has the authority to approve the proposed Parcel Map.
Staff recommends authority for the Acting Executive Director to execute the application on behalf of the
Authority for the proposed Parcel Map which will create the three parcels described above.
19
ATTACHMENT 1
Resolution
20
RESOLUTION NO:
ADOPTED:
RESOLUTION APPROVING AND AUTHORIZING THE SUBMITTAL OF A PARCEL MAP
APPLICATION TO THE CITY AND COUNTY OF SAN FRANCISCO DEPARTMENT OF
PUBLIC WORKS TO CREATE (I) THREE SEPARATE PARCELS AT 430 AND 440 TURK
STREET, SAN FRANCISCO, CALIFORNIA (THE "PROPERTY"); A RESIDENTIAL
PARCEL, A COMMERCIAL PARCEL, AND A LAND PARCEL; AND (II) CERTAIN
EASEMENTS AND LICENSES FOR PARKING AND UTILITIES RELATED TO SUCH
PARCELS: IN CONNECTION WITH THE RENOVATION AND REHABILITATION OF THE
PROPERTY AT CLUSTER 4 (TENDERLOIN AND SOUTH OF MARKET CLUSTER) UNDER
THE UNITED STATES DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
RENTAL ASSISTANCE DEMONSTRATION (RAD) PROGRAM
WHEREAS, the City and County of San Francisco (the "City") and the Housing Authority of the City
and County of San Francisco (the "Authority") have developed a Re-Envisioning Plan to ensure the long
term viability of the Authority's housing developments and assets by addressing critical rehabilitation
needs to bring needed capital to the Authority's housing developments;
WHEREAS, pursuant to Resolution No. 0062-13 adopted on September 26, 2013 by the Authority Board
of Commissioners, the Authority submitted applications for 41 housing projects, including the housing
project located at 430-440 Turk Street, San Francisco, California (the "Senior Housing Project"), to the
United States Department of Housing and Urban Development ("HUD") to receive assistance under
HUD's Rental Assistance Demonstration (RAD) program;
WHEREAS, on January 6, 2013, HUD awarded a Portfolio Award Letter for the Senior Housing Project,
and a preliminary Commitment to Enter into Housing Assistance Payments (CHAPs) contract, which will
permit the conversion of the Senior Housing Project from public housing units to RAD assisted units
through Project Based Section 8 Vouchers. Under the RAD program, the Authority is authorized to
convey or lease its properties, including the Senior Housing Project, to private developers to attract
private financing to meet the capital needs of the Authority's properties;
WHEREAS, the Senior Housing Project is part of the Authority's mixed use commercial and residential
project, in which is located the Authority's previous administrative offices (the "Development");
WHEREAS, to renovate the Senior Housing Project as contemplated under the RAD program, the
Development must be divided into separate parcels, pursuant to the California Subdivision Map Act, as
implemented by the City's Department of Public Works ("DPW");
WHEREAS, as described in the staff report attached to this Resolution, the Authority desires to apply for
a Parcel Map with the DPW to create three separate parcels to facilitate the rehabilitation of the Senior
Housing Project under the RAD program;
WHEREAS, the Authority, as the fee owner of the Development, must approve the submittal of the
application for the Parcel Map as described in the staff report.
21
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COMMISSIONERS OF THE
HOUSING AUTHORITY OF THE CITY AND COUNTY OF SAN FRANCISCO THAT:
1.
The above recitals are true and correct, and together with the staff report, form the basis for the
Board of Commissioners' actions as set forth in this Resolution.
2. The Acting Executive Director is hereby authorized to submit an application for the Parcel Map to the
DPW, and to execute any and all necessary documents and agreements necessary for such
application.
3. This Resolution shall take effect immediately.
APPROVED AS TO FORM
AND LEGALITY:
REVIEWED BY:
________________________________
Dianne Jackson McLean, Esq.
Goldfarb & Lipman LLP,
Special Legal Counsel
____________________________________
Barbara T. Smith, Acting Executive Director
Date:_______________________________
Date:________________________________
22
ATTACHMENT 2
Air Right Parcel
23
24
25
26
27
RESOLUTION NO: ____________
ADOPTED: _____________
RESOLUTION APPROVING AND AUTHORIZING THE EXPENSE OF ANNUAL
MICROSOFT ENTERPRISE AGREEMENT FOR YEAR ENDING NOVEMBER 30,
2011 IN THE AMOUNT OF $93,015.
WHEREAS, the San Francisco Housing Authority received three (3) required quotes addressing all
Microsoft Volume Licensing software;
WHEREAS, the funding is available through budget of the 2012 Capital Funds; and
WHEREAS, the procurement process for those actions covered by this Resolution meet the procurement
standards of 24 CFR 85.36 “Procurement”, HUD Handbook 7460.8 REV 2, “Procurement Handbook for
Public Housing Authority”, the Authority's Procurement Policy and Procurement Procedures Manual and
State of California and local laws.
NOW THEREFORE, BE IT RESOLVED BY THE BOARD OF COMMISSIONERS OF THE
HOUSING AUTHORITY OF THE CITY AND COUNTY OF SAN FRANCISCO THAT:
1. The above recitals are true and correct, and together with the Staff Report, form the basis for the
Board of Commissioners' actions as set forth in this Resolution.
2. The Microsoft Enterprise Agreement for an expense of $93,014.91 for year ending November 30,
2015 (the "Agreement") is hereby approved
3. The Acting Executive Director is authorized to execute the Agreement.
4. This Resolution shall take effect immediately.
APPROVED AS TO FORM AND LEGALITY:
REVIEWED BY:
___________________________________
_______________________________
Barbara T. Smith, Acting Executive Director
Dianne Jackson McLean,
Goldfarb & Lipman LLP,
Special Legal Counsel
Date: ______________________________
Date: ______________________
28
STAFF REPORT
THE HOUSING AUTHORITY OF THE CITY AND COUNTY OF SAN FRANCISCO
BOARD OF COMMISSIONERS
Agenda Category:
Action Item – Procurement
Agenda Title:
Resolution Approving and Authorizing The Acting Executive Director To
Increase The Dollar Value Of The Contracts With Southwest Hazard
Control, Inc. (Contract #13-0008) And Quality Asbestos Control, Inc.
(Contract #13-0009) by $10,000 Each For The Ongoing Need For Abatement
Of Lead Based Paint For A Total Contact Value Not To Exceed of
$35,000.00 Each Through January 31, 2015
Presented By:
Solomon Gebala – Chief Procurement Officer
SUMMARY:
The San Francisco Housing Authority (Authority) may contract for specialized or emergency work with
contractors to maintain and modernize its facilities. Part of this contracted work involves the abatement
of asbestos from structures and requires specialized and certificated personnel, something the Authority
staff is not qualified to perform. The Authority currently has contracts to perform asbestos abatement
with South West Hazardous Controls, Inc. (Contract #13-0008) and Quality Asbestos Control, Inc.
(Contract #13-0009) which have not to exceed values of $25,000.00 each, which are exhausted.
A procurement for asbestos abatement contractors was conducted pursuant to 24 CFR 85.36 and resulted
in only one response. The Authority rejected the submission and conducted a second procurement which
yielded 3 responses and one late response. The three on-time responses were evaluated and it was
determined that all three had one or more issues making them nonresponsive. The fourth submission was
not reviewed, due to the fact it was nonresponsive having arrived after the due date.
Because the Authority continues to have an immediate need for asbestos abatement contractors and
wishes to comply with procurement standards, staff recommends the current contracts with South West
Hazardous Controls, Inc. (Contract #13-0008) and Quality Asbestos Control, Inc. (Contract #13-0009), be
extended while another procurement for asbestos abatement contractors is conducted. This procurement
is expected to be completed by December 2014 and the Authority expects to bring a recommendation
before the Board of Commissioners in January of 2015.
Attachments:
Resolution
A copy of any attached documents is available at the clerk’s desk.
DEPARTMENT’S REQUESTED ACTION:
Staff recommends adoption/ratification of this resolution/contract.
ACTING EXECUTIVE DIRECTOR’S RECOMMENDATION:
Action Item No: 2
I concur with staff recommendation
Date: November 12, 2014
29
RESOLUTION NO:
ADOPTED:
RESOLUTION APPROVING AND AUTHORIZING THE ACTING EXECUTIVE DIRECTOR
TO INCREASE THE DOLLAR VALUE OF THE CONTRACTS WITH SOUTHWEST HAZARD
CONTROL, INC. (CONTRACT #13-0008) AND QUALITY ASBESTOS CONTROL, INC.
(CONTRACT #13-0009) BY $10,000 EACH FOR THE ONGOING NEED FOR ABATEMENT OF
LEAD BASED PAINT FOR A TOTAL CONTACT VALUE NOT TO EXCEED OF $35,000.00
EACH THROUGH JANUARY 31, 2015
WHEREAS, the San Francisco Housing Authority (Authority) utilizes contracted services to supplement
its staff for certain projects; and
WHEREAS, the Authority has an ongoing need for the abatement of asbestos from its facilities; and
WHEREAS, the Authority has identified resources from its capital budget to fund this; and
WHEREAS, the Authority has existing contract with South West Hazard Control, Inc. and Quality
Asbestos Control, Inc.; and
WHEREAS, the Authority will conduct another procurement to establish new contracts for the abatement
of asbestos from its facilities.
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COMMISSIONERS OF THE
HOUSING AUTHORITY OF THE CITY AND COUNTY OF SAN FRANCISCO THAT:
4. The above recitals are true and correct, and together with the staff report, form the basis for the Board
of Commissioners' actions as set forth in this Resolution.
5. The increase of the contracts with South West Hazardous Controls, Inc. (Contract #13-0008) and
Quality Asbestos Control, Inc. (Contract #13-0009) by $10,000.00 each for a not-to-exceed amount of
$35,000.00 respectively, are hereby approved, and the Acting Executive Director is authorized to
execute the amendments to Contract # 13-008 and Contract #13-009.
6. This Resolution shall take effect immediately.
APPROVED AS TO FORM
AND LEGALITY:
REVIEWED BY:
________________________________
Dianne Jackson McLean,
Goldfarb & Lipman LLP,
Special Legal Counsel
____________________________________
Barbara T. Smith, Acting Executive Director
Date:_______________________________
Date:________________________________
30
STAFF REPORT
THE HOUSING AUTHORITY OF THE CITY AND COUNTY OF SAN FRANCISCO
BOARD OF COMMISSIONERS
Agenda Category:
Action Item – Procurement
Agenda Title:
Resolution Approving and Authorizing The Acting Executive Director To
Enter Into A Consulting Contract With Ford & Bonilla To Perform An
Overall Communications Assessment, Develop Communication And
Resident Engagement Plans, Actively Participate In The Implementation Of
The Plans, Act As The Point Of Contact For Emergency Communications
And Assist In Re-Imaging The Authority For A One (1) Year Contract With
The Option Of Up To Four, One (1) Year Renewals With A Contract Value
Not-To-Exceed $151,840 Annually.
Presented By:
Solomon Gebala – Chief Procurement Officer
SUMMARY:
The San Francisco Housing Authority (Authority) is committed to providing safe, decent, and sanitary
housing for residents in the City and County of San Francisco. The Authority is committed to making
ongoing improvements in operations, financial management, resident engagement and communications
with staff, residents, property owners, and the community at-large. Recently, the Authority identified a
business need to improve communications to keep residents, staff and the community informed. The
Authority requires the services of a consultant to assess our current communications process and provide
support in the development of a communication and resident engagement improvement plan/process for
the Authority and its staff.
The consultant will conduct an analysis of the current communications process and develop a plan to
improve engagement with residents, staff, property owners, government agencies, organizations, groups,
individuals and community stakeholders with whom the Authority interacts. This plan will be developed
with the input of Authority staff and will take into consideration the needs of the various stakeholders
involved. The consultant will play a role in the implementation of the Plan, including the communication
strategy and emergency communications. The consultant will also participate in the strategic planning
process and make recommendations for appropriate messaging and image improvement tools e.g.,
website, letterhead, etc.
The Authority released a Request For Proposal (RFP) #15-710-RFP-0001 pursuant to 24 CFR 85.36 to
obtain offers from firms who wished to be considered for this solicitation. The procurement staff actively
promoted the solicitation, reaching out to firms by both phone and email. The solicitation due date was
extended, and additional outreach was performed during this period. The expectation was that the
additional time would generate more interest in the RFP. However, the Authority received just one
proposal.
The Authority decided it was in its best interest to review the one proposal to determine if the offer was
responsible and responsive. A panel of three (3) Authority staff members reviewed the proposal and
31
ranked the measurable components scoring it 85.5 out of 100. A price reasonableness analysis was also
conducted comparing the cost estimates and the proposed rates which demonstrated favor to the
Authority. The proposed rates were then analyzed against the budget for this project and it was
determined that the project could be completed within the established budget.
Staff recommends the award of the contract under the noncompetitive proposal process as defined in 24
CFR 85.36(d)(4)(i)(D) to Ford & Bonilla for an initial period of one (1) year with the option to renew
annually for a cumulative total of no more than four (4) years with a not to exceed value of $150,000.00.
This contract has been budgeted and will be funded out of Capital Fund Management Improvements.
Attachments:
Resolution
A copy of any attached documents is available at the clerk’s desk.
DEPARTMENT’S REQUESTED ACTION:
Staff recommends adoption/ratification of this resolution/contract.
ACTING EXECUTIVE DIRECTOR’S RECOMMENDATION:
Agenda Item No: 3
I concur with staff recommendation
Date: November 12, 2014
32
RESOLUTION NO:
ADOPTED:
RESOLUTION APPROVING AND AUTHORIZING THE ACTING EXECUTIVE DIRECTOR
TO ENTER INTO A CONSULTING CONTRACT WITH FORD & BONILLA TO PERFORM
AN OVERALL COMMUNICATIONS ASSESSMENT, DEVELOP COMMUNICATION AND
RESIDENT
ENGAGEMENT
PLANS,
ACTIVELY
PARTICIPATE
IN
THE
IMPLEMENTATION OF THE PLANS, ACT AS THE POINT OF CONTACT FOR
EMERGENCY COMMUNICATIONS AND ASSIST IN RE-IMAGING THE AUTHORITY FOR
A ONE (1) YEAR CONTRACT WITH THE OPTION OF UP TO FOUR, ONE (1) YEAR
RENEWALS WITH A CONTRACT VALUE NOT-TO-EXCEED $151,840 ANNUALLY.
WHEREAS, the San Francisco Housing Authority (Authority) utilizes the use of professional services to
supplement its staff; and
WHEREAS, the Authority desires to utilize the expertise of a communications consultant to enhance
various aspects of its business; and
WHEREAS, the Authority has identified resources from its operating budget to fund this project; and
WHEREAS, Ford & Bonilla (F&B) has demonstrated its ability and experience to help the Authority
achieve certain goals related to communications; and
WHEREAS, the Authority has demonstrated the need to award this contract under a noncompetitive
proposal process; and
WHEREAS, the procurement process for those actions covered by this resolution meet the procurement
standards of 24 CFR 85.36 “Procurement”, HUD Handbook 7460.8 REV 2, “Procurement Handbook for
Public Housing Agencies and Indian Housing Authorities”, the San Francisco Housing Authority
Procurement Policy and Procurement Policy Manual and State of California and local laws; and
33
WHEREAS, the Authority has obtained authorization from the U.S. Department of Housing and Urban
Development (HUD) to award this noncompetitive procurement.
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COMMISSIONERS OF THE
HOUSING AUTHORITY OF THE CITY AND COUNTY OF SAN FRANCISCO THAT:
7. The above recitals are true and correct, and together with the staff report, form the basis for the Board
of Commissioners' actions as set forth in this Resolution.
8. The contract with Ford & Bonilla for communications and resident engagement consulting for a one
(1) year contract with an option to renew annually for a cumulative maximum of four (4) years with
an amount not to exceed $150,000.00 annually, is hereby approved, and the Acting Executive
Director is authorized to execute the contract.
9. This Resolution shall take effect immediately.
APPROVED AS TO FORM
AND LEGALITY:
REVIEWED BY:
________________________________
Dianne Jackson McLean,
Goldfarb & Lipman LLP,
Special Legal Counsel
____________________________________
Barbara T. Smith, Acting Executive Director
Date:_______________________________
Date:________________________________
34
STAFF REPORT
THE HOUSING AUTHORITY OF THE CITY AND COUNTY OF SAN FRANCISCO
BOARD OF COMMISSIONERS
Agenda Category:
Action Item – Procurement
Agenda Title:
Resolution Approving and Authorizing The Acting Executive Director To
Enter Into A Consulting Contract With IFH Solutions, Inc. To Serve As A
Dedicated Software Conversion Project Manager Providing Oversight And
Conversion Management Over The Authority’s Software Conversion From
Gilson Software To Emphasys Software For A Period Of One (1) Year , with
Certain Option(s) to Extend Until Project Completion, in a Contract
Amount Not-To-Exceed Value Of $300,000
Presented By:
Solomon Gebala – Chief Procurement Officer
SUMMARY:
The San Francisco Housing Authority (Authority) uses various software applications to manage its daily
business and recently entered into a five-year contract with Emphasys Software Systems to acquire user
licenses and ongoing maintenance and support with the intent to convert to a new housing software
management system by July 2015. The new software (Emphasys Elite) is scheduled to be deployed in
stages to meet the goals established by the Authority. The process to transition from the current system
into the new Elite application is a time sensitive and essential function requiring a full-time employee to
monitor and coordinate the process.
The Authority published a Request For Proposal (RFP) #15-300-RFP-0007 pursuant to 24 CFR 85.36 to
obtain offers from firms who wished to be considered for this solicitation. The procurement staff actively
promoted the solicitation, reaching out to firms by phone and email; but despite its efforts, only received
one proposal.
This project is time sensitive. The potential for delays for the deployment of the software modules would
be devastating if another solicitation had to be performed. Such delays would create fiscal and
operational shortfalls affecting the Authority’s ability to operate. Accordingly, the Authority decided it
was in its best interest to review the one proposal received to determine if the offer was responsible and
responsive.
A panel of three (3) Authority staff members reviewed the proposal and ranked the measurable
components scoring it 81.6 out of 100. A price reasonableness analysis was also conducted comparing
the cost estimates and the proposed rates. These rates were then analyzed against the budget for this
project. Based on this, the Authority engaged in competitive negotiations with IFH Solutions, Inc.
Through this process, the Authority was able to arrive at an equitable contract value which allows the
project to be completed on time and within the established budget for this project.
Staff recommends the award of the contract under the noncompetitive proposal process as defined in 24
CFR 85.36(d)(4)(i)(D) to IFH Solutions, Inc. for a one (1) year, with the Authority having the option to
35
extend the contract for up to three(3) ______ month(s) terms, until the project is complete with a contract
amount not to exceed value of $300,000.00. The project will be funded through Capital Funds
Management Improvements, and from administrative fees from both the Housing Choice Voucher
Program and the Moderate Rehabilitation Program.
Attachments:
Resolution
A copy of any attached documents is available at the clerk’s desk.
DEPARTMENT’S REQUESTED ACTION:
Staff recommends adoption/ratification of this resolution/contract.
ACTING EXECUTIVE DIRECTOR’S RECOMMENDATION:
Agenda Item No: 4
I concur with staff recommendation
Date: November 12, 2014
36
RESOLUTION NO:
ADOPTED:
RESOLUTION APPROVING AND AUTHORIZING THE ACTING EXECUTIVE DIRECTOR
TO ENTER INTO A CONSULTING CONTRACT WITH IFH SOLUTIONS, INC. TO SERVE AS
A DEDICATED SOFTWARE CONVERSION PROJECT MANAGER PROVIDING
OVERSIGHT AND CONVERSION MANAGEMENT OVER THE AUTHORITY’S SOFTWARE
CONVERSION FROM GILSON SOFTWARE TO EMPHASYS SOFTWARE FOR A PERIOD
OF ONE (1) YEAR WITH, CERTAIN OPTIONS TO EXTEND UNTIL PROJECT
COMPLETION, IN A CONTRACT AMOUNT NOT-TO-EXCEED $300,000
WHEREAS, the San Francisco Housing Authority (Authority) utilizes the use of professional services to
supplement its staff for certain projects; and
WHEREAS, the Authority desires to utilize the expertise of a software conversion manager; and
WHEREAS, the Authority has identified resources from its operating budget to fund this project; and
WHEREAS, IFH Solutions, Inc. has demonstrated its ability to help the Authority transition from its
current operating software to its new Elite software; and
WHEREAS, the Authority has demonstrated the need to award this contract under a noncompetitive
proposal process; and
WHEREAS, the Authority has obtained authorization from the U.S. Department of Housing and Urban
Development (HUD) to award this noncompetitive procurement.
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COMMISSIONERS OF THE
HOUSING AUTHORITY OF THE CITY AND COUNTY OF SAN FRANCISCO THAT:
10. The above recitals are true and correct, and together with the staff report, form the basis for the Board
of Commissioners' actions as set forth in this Resolution.
11. The contract with IFH Solutions, Inc. for the software conversion management under a one (1) year
contract, including up to three (3) option(s) to extend the contract for ____ months , for a contract
amount not to exceed $300,000.00, is hereby approved, and the Acting Executive Director is
authorized to execute the contract
12. This Resolution shall take effect immediately.
APPROVED AS TO FORM
AND LEGALITY:
REVIEWED BY:
________________________________
Dianne Jackson McLean,
Goldfarb & Lipman LLP,
Special Legal Counsel
____________________________________
Barbara T. Smith, Acting Executive Director
Date:_______________________________
Date:________________________________
37
AGENDA
SAN FRANCISCO HOUSING AUTHORITY BOARD OF COMMISSIONERS
Agenda Category:
Action Item – Finance Department
Agenda Title:
RESOLUTION AUTHORIZING THE ACTING EXECUTIVE
DIRECTOR TO APPROVE THE WRITE-OFF OF VACATED TENANT
ACCOUNTS RECEIVABLE IN THE AMOUNT OF $351,549 AND
BANKRUPTCY DISCHARGED DEBT IN THE AMOUNT OF $13,108
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2014
Presented By:
Velma Navarro, Deputy Executive Director/Chief Operating Officer
SUMMARY:
The San Francisco Housing Authority Board of Commissioners (the "Board" or "SFHA") is requested to
authorize the Acting Executive Director to write-off tenant accounts receivables (TARs) totaling
$351,549 and bankruptcy discharged debt in the amount of $13,108 for the fiscal year period of October
1, 2013 to September 30, 2014. The amount of $351,549 represents uncollectible account balances owed
by 149 former tenants who have vacated or abandoned their units, been evicted, or died. The amount of
$13,108 represents uncollectible debt that has been discharged in bankruptcy for 1 active tenant.
On September 26, 2013, the Board amended the San Francisco Housing Authority’s write-off policy to
limit TAR write-off to vacated units accounts and bankruptcy debt. The total TAR amount of $351,549
recommended for write-off does not include accounts from active tenants. Moreover, in compliance with
HUD Financial Management Handbook 7475.1 REV Chapter 6 Section 6-2 (d) (2), SFHA reviews its
TARs and identifies vacated units accounts for write-off with no collection activities.
These write-off balances of $351,549 are not deleted from the SFHA's books but are maintained in
separate ledgers for tracking purposes. Writing off such accounts does not preclude the SFHA from
pursuing collection actions against these former tenants. Efforts to collect these outstanding accounts
continue to be a priority of the SFHA. Currently, the SFHA is working on identifying a collection agency
for assistance in collecting these bad debts, including the City’s Bureau of Delinquent Revenue.
Moreover, individuals who vacate units without paying off their delinquent accounts are reported on the
U.S. Department of Housing and Urban Development’s Enterprise Income Verification (EIV) system and
are not qualified to receive public housing assistance in the future as long as balances are outstanding.
[Continued on Page 2]
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Attachments:
Resolution
A copy of any attached documents is available at the clerk’s desk.
DEPARTMENT’S REQUESTED ACTION:
Staff recommends adoption of this Resolution
ACTING EXECUTIVE DIRECTOR’S RECOMMENDATION:
I concur with staff recommendation
Action Item No: 5
Date: November 12, 2014
The objective of writing off $351,549 in vacated TARs is to follow generally accepted accounting
principles (GAAP) for fiscal year-end financial statement purposes, comply with HUD guidelines in
recording tenant accounts receivable and accurately reflect TAR balances. The conservative presentation
of TARs in our books is essential in order to increase the Public Housing Assessment System (PHAS)
score. This PHAS indicator improves if the TAR balance shown in the books reflects its correct
realizable value.
The funding for the actual amount of collection losses of $351,549 and $13,108 for fiscal year 2014 is
available in the Low-Income Operating Program Budget.
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RESOLUTION NO:
ADOPTED: November 20th, 2014
RESOLUTION AUTHORIZING THE ACTING EXECUTIVE DIRECTOR TO APPROVE
THE WRITE-OFF OF VACATED TENANT ACCOUNTS RECEIVABLE IN THE AMOUNT
OF $351,549 AND BANKRUPTCY DISCHARGED DEBT IN THE AMOUNT OF $13,108 FOR
THE FISCAL YEAR ENDED SEPTEMBER 30, 2014
WHEREAS, HUD Financial Management Handbook 7475.1 REV Chapter 6 Section 6-2 (d)(2), details
procedures on the write-off of vacated TARs and the San Francisco Housing Authority ("Authority") is in
compliance with those procedures and is following generally accepted accounting principles for year-end
recording and financial reporting purposes; and
WHEREAS, the HUD Handbook requires that any write-off of tenant accounts receivables (TARs) must
be approved by the Authority's Board of Commissioners ("Board of Commissioners") or by a designated
official to whom such authority has been delegated by the Board of Commissioners; and
WHEREAS, the Board of Commissioners authorized by Resolution No. 2784, dated February 27, 1986,
to write-off vacated units tenant accounts; and
WHEREAS, the Authority analyzed the collectability of these TARs and had exhausted all collection
efforts; and
WHEREAS, the write-off of these TARs is in compliance with Authority’s revised write-off policy
approved by the Board of Commissioners on September 26, 2013.
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COMMISSIONERS OF THE
HOUSING AUTHORITY OF THE CITY AND COUNTY OF SAN FRANCISCO THAT:
1. The above recitals are true and correct, and together with the staff report, form the basis for the
Board of Commissioners' actions as set forth in this Resolution.
2. The Acting Executive Director is hereby authorized to approve the write-off of vacated Tenant
Accounts Receivables in the amount of $351,549 and bankruptcy discharged debt in the amount
of $13,108 for the fiscal year ended September 30, 2014.
3. The Resolution shall take effect immediately.
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APPROVED AS TO FORM
AND LEGALITY:
REVIEWED BY:
________________________________
Dianne Jackson McLean,
Goldfarb & Lipman LLP,
Special Legal Counsel
____________________________________
Barbara T. Smith, Acting Executive Director
Date:_______________________________
Date:________________________________
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