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HomeMy WebLinkAboutItem 7.2 Accept Ownership Arroyo Vista Housing (2) L43o - 9a CITY OF DUBLIN AGENDA STATEMENT CITY COUNCIL MEETING DATE: July 22 , 1985 SUBJECT Report from City Manager Regarding Arroyo Vista EXHIBITS ATTAC morandum from City Attorney dated July 18 , 1985 ; esolution RECOMMENDATIO Consider Pleasanton conditions of transfer and adopt Resolution as appropriate FINANCIAL STATEMENT: Undetermined at this time DESCRIPTION At its meeting of July 16, 1985 , the Pleasanton City Council adopted a ,Resolution stating their intention to transfer the Arroyo Vista Public Housing Project to the City of Dublin. The City of Pleasanton has indicated that this transfer would be predicated on primarily two conditions : 1) The City of Dublin maintain a local office to manage Arroyo Vista; 2 ) The City of Dublin continue to maintain the existing system of tenant selection which would give residents of Pleasanton and Dublin equal opportunity to rent the Arroyo Vista housing. If the City Council concurs with this resolution, it is Staff' s recommendation that the City Council adopt the attached resolution stating its intention to accept responsibility for Arroyo Vista. Subsequent to the adoption of this resolution, Staff and the City Attorney will meet with representatives from the City of Pleasanton and HUD to develop a formal agreement which can be acted upon by both Cities in order to facilitate the transfer process . At that time , Staff will prepare a report to the City Council outlining the various management and operation alternatives available to the City in operating Arroyo Vista. Staff will also provide the Council with a resolution which would activate a Dublin Housing Authority. The City Attorney has prepared a memo ( see attached ) , which outlines the various legal options which the City Council — has with respect to the structure of the Authority Board of Directors . This memo is intended for information at this time . It is recommended that the City Council defer any action with respect to the structure of the Commission until a formal agreement has been prepared in conjunction with the City of Pleasanton. ---------------------------------------------------------------------------- COPIES TO : ITEM NO. f7 2-J CITY OF DUBLIN P.O. Box 2340 Dublin, CA 94568 (415) 829-4000 MEMORANDUM TO: Richard Ambrose, City Manager FROM: Michael R. Nave, City Attorney DATE: July 18, 1985 RE: Activation of Housing Authority of Dublin To Assume Operation of Arroyo Vista FACTS: The Housing Authority of the City of Pleasanton was established in 1943 and included the presently named Arroyo Vista housing development, which at that time was part of the unincorporated area of Alameda County. It exists today within the boundaries of the City of Dublin, and Dublin desires to activate a housing authority to assume its operation. On July 16 , 1985 , at a meeting of the Pleasanton City Council, the Council voted to adopt an ordinance transferring Arroyo Vista to a housing authority to be created by Dublin. A condition of this transfer is that Pleasanton residents be given continued preference as tenants of the proposed Dublin Housing Authority. You have asked the following questions: 1. Who can be on the Board of Directors or _ Commissioners? 2. When will the transfer of Arroyo Vista occur? 3 . Can the condition that Pleasanton residents be given continued preference be imposed? 4. Any other salient points that should be made. CONCLUSION: 1. The commissioners for the authority may be appointed pursuant to Section 34270 of the _Health and Safety Code, which allows for five commissioners from the general citizenry, with two additional commissioners to be appointed from the tenants of the authority and in compliance with certain restrictions and requirements. An alternative procedure is provided under Section 34290 which allows for the City Council to be appointed as the five commissioners, plus the addition RE: Activation of Housing Authority of Dublin To Assume Operation of Arroyo Vista July 18, 1985 Page Two of two commissioners to be appointed from the tenants of the authority and in compliance with certain restrictions and requirements. A decision as to which procedure should be selected may be influenced by the statutory concerns regarding conflicts of interest and the express requirement to exercise independent judgment on behalf of the authority. 2. The transfer of Arroyo Vista will be effective thirty (30) days from the date of the final passage of the ordinance authorizing said transfer which occurred at the Pleasanton City Council meeting of July 16 , 1985 . The Dublin Housing Authority is activated upon proof of the adoption of a resolution declaring the need for the functioning of such an authority. 3 . Pursuant to specific sections of the U. S. Department of Housing and Urban Development Handbook, the condition that Pleasanton residents be given continued preference may be imposed, as well as the condition that Dublin residents be given such preference. 4 . See response to this question in the discussion of this memorandum. DISCUSSION: ACTIVATION OF HOUSING AUTHORITY Although the Housing Authorities Law creates in each city and county a public housing authority, it is not organi-z ed to transact business until the local governing body resolution delcares the need for an authority to function in it, as provided in Section 34240 of the Health and Safety Code. In fact, the California Supreme Court held in Rleiber v. San Franciscio, (1941) , 18 C2d 718, that all considerations of wisdom, policy, and desirability connected with the functioning of the authority are settled and resolved by the acts of the state and of the; local subdivisions declaring the existence of the need. Under Section 34241 of the Health and Safety Code, it is provided that the Council may make the determination as to whether there is a need for an authority to function upon its own motion. Further, under Section 34244, it is stated that the authority is conclusively deemed to have been established and authorized to transact business and exercise its powers upon proof of the adoption of a resolution by the governing body declaring the need for the authority. The resolution is RE: Activation of Housing Authority of Dublin To Assume Operation of Arroyo Vista July 18 , 1985 Page Three sufficient if it complies with Section 34242, which provides that the Council declares that there is a need for a housing authority if it finds either of the following: (a) That unsanitary or unsafe inhabited dwelling accommodations exist in the city; (b) That there is a shortage of safe or sanitary dwelling accommodations in the city available to persons of low income at rentals they can afford. It is advised that the Council may activate the housing authority of Dublin by its own motion, and that the housing authority is established to exercise its powers upon the adoption of a resolution declaring the need for the authori7ty. 1. Who can be on the Board of Directors or Commissioners? To answer this question, it is important to explain the procedure for the appointment of commissioners and alternative officers. Under Section 34270 of the Health and Safety Code, the governing body of the city, upon adoption of said resolution of need, appoint five commissioners to the authority. The Council shall appoint two additional commissioners who are tenants of the authority if the authority has tenants, or within one year after the authority first does have tenants. One such tenant shall be over 62 years of age if the authority has such tenants. In the case of five commissioners, under Section 34272 , three of the commissioners first appointed shall be designated by the appointing authority to serve for terms of one, two, and three years, respectively, from the date of their appointment, and two shall be designated to serve for terms of four years from the date of their appointments. J If two tenant commissioners are added, under Section 34272, such commissioners shall serve terms of two years from the date of their appointments and their successors shall be tenants. Successors of commissioners shall be appointed for a term of four years, except that successors of tenant commissioners shall be appointed for a term of two years, and all vacancies shall be filled for the unexpired term. Moreover, a tenant commissioner shall have all the powers, duties, privileges, and immunities of any other commissioner. If a tenant commissioner ceases to be a tenant of RE: Activation of Housing Authority of Dublin To Assume Operation of Arroyo Vista July 18 , 1985 Page Four the authority, he shall be disqualified and another tenant shall be appointed to fill the unexpired term. Under Section 34272 (b) , it is provided that a commissioner may be an officer or employee of the city, or he or she may be a member, commissioner, or employee of any other agency or authority of or created for the community. An officer or employee of the city, under Section 34272 (c) , may serve as commissioner only if such officer or -employee does not exercise powers or duties in his office or employment that may conflict with the exercise of the independent judgment required to carry out the purposes of an authority. Therefore, it may be advisable not to appoint the members of the City Council as members of the housing authority if such a conflict could arise, particularly in light of Section 34310 , which states that the housing authority is a public corporation separate from the city and serves as an official branch of the state. Under Section 34273 , it is provided that certificates of appointments or re-appointments of any commissioners must be filed with the City Clerk. Further, under Section 34274, it is provided that a commissioner shall not be regularly employed by the authority during his tenure of office, but may receive per diem payment for attendance at not more than four meetings per month of the authority which shall not exceed $50 .00 per day. It is provided under Section 34276 , that in the case of a commission of five persons, three commissioners constitutes a quorum of the authority for the purpose of conducting its business and exercising its powers and for all other purposes, while in the case of a commission of seven persons, four commissioners constitute a quorum for such purposes. It is provided under Section 34277 that the Council shall designate the first chairman from among the commissioners and that the authority shall select his successor from among its commissioners. Under Section 34278 (a) , is is stated that an authority shall select from among its commissioners a vice-chairman. It also may employ a secretary, who shall be executive director, technical experts, and such other officers, agents, and employees as it is required, and shall determine their qualifications, duties, terms of employment, and compensation. The authority, moreover, shall adopt personnel rules and regulations applying to all employees. Such rules shall contain RE: Activation of Housing Authority of Dublin To Assume Operation of Arroyo Vista July 18, 1985 Page Five procedures affecting conflicts of interest, use of funds, personnel procedures on hiring and firing, including removal of personnel for inefficiency, neglect of duties, or misconduct in office. Such rules and regulations shall be of public record. Further, under Section 34278 (b) , it is stated that the authority may contract with the Department of Housing and Community Development, or any other authority, for the furnishing by the department or authority of any necessary staff services associated with or required by an authority, and which could be performed by the staff of an authority. Thus, not only may the authority hire employees, determine their qualifications, terms and conditions of employment, and adopt personnel rules and regulations, but it may also contract with other agencies for any necessary staff services. In summary, it is apparent that the City Council may appoint a total of seven commissioners, two of which must be tenants of the authority, and one tenant commissioner must be over 62 years of age. The commissioners may be employees or officers of the city or some other public agency, so long as they satisfy the residency requirement and so long as they can exercise the independent judgment necessary in carrying out the purposes of the authority. Under Section 34281, it is provided that a commissioner or employee of an authority shall not acquire any direct or indirect interest in any housing project or in any pro erty included or planned to be included in any project, nor shall he have any direct or indirect interest in any contract or proposed contract or proposed contract for materials in connection with any housing project. If he owns or controls a direct or indirect interest in any such property, he shall immediately make a written disclosure of it to the authority, and the disclosure shall be entered upon the minutes. Failure to disclose constitutes misconduct of office. The mandatory disclosure of any direct or indirect interest in any housing project emphasizes the legislative concern to avoid any conflict of interest or "appearance" of such a conflict, and should be read in conjunction with Section 34272 (c) relating to the requirement of exercising independent judgment on behalf of the authority. Consequently, Section 34282 provides that for inefficiency, neglect of duty, or misconduct of office, a commissioner may be removed by the Council, or by the mayor if he has the power of appointment of commissioners. A RE: Act .tion of To Assume Housing Authority Operation of Arro o Vi July 18, 1985 Page Six commissioner shall days notice of the be removed only afi Opportunity to heard charges be to tt . person or t CITY COUNCIL AS COMM, commissioners Council may determine to Council °f the housing authority. as so decides, it _ so shall either an a visor or, pursuant to hay housin Secti and appoint commission (much i Council tWO tenants to itself to the advisory govern the author ty• i Section 34291,a housing commis recommendationsits function commission is cr( Prior on all matters shall be to to authorit which the commission, to come b action exce The Council ma by resoluP1Onmerge recommendation rovide , exc. ordinance for rocedures f, or resolution further function; as commission of t and ma commission he housin dele ate clear created authorit to that the ursuant to Section 34 authority Council may appoint Section 34270two different commis, commissioners et se Procedures tj from they would allow for t� commissioners, and general s-e2. , which the other citizenry, commissioners would allow for theursuant to commissioners. -1 the City Council, plus n . plus 2• When will aneordinancentra of Pleasanton transfer of Art be created b nsferring Arro July 16, da s from Y Dublin, said ordinance Vista to 'a under Section date of its final all i established 34244' the housin assn e. A: governing upon Proof of t 9 authority Therefore, declaring he adoption of a about ' the transfergOf A need for said a Authority days' but the Arroyo Vista takes activation °f the resolution effect upon the adoption Dub. declaring the need for ittton of i 3 • Can t funct given continued he condition reference that Pleasant be im osed? Yes. RE: Activation of Housing Authority of Dublin To Assume Operation of Arroyo Vista July 18, 1985 Page Seven authority cannot make the privilege of occupancy dependent on conditions that deprive any citizen of his consitutional rights (see Housing Authority of Los Angeles vs. Cordova, 130 CA2d Supp 883 , cert den. 350 US 969, 76 S.Ct. 440) , it appears from a review of the U. S. Department of Housing and Urban Development Handbook, sections 2-18, 2-19 , and 2-20 , that a public housing authority may limit access to the program to those families living in the jurisdiction of the authority at the time of the application, or it may establish a preference on a similar basis. Therefore, in accordance with these provisions, the Dublin Housing Authority could give preference to Pleasanton, as well as Dublin residents, based upon the criteria that the authority must achieve occupancy representative of a broad range of income within a reasonable time; that preference may be given to applicants who are not only residents, but applicants who are working or who have been notified that they are hired to work in the jurisdiction; and that preference for tenant selection and assignment may be based upon local program objectives. In the case at hand, the local program objectives, arguably were to provide low income housing to Pleasanton residents since 1943 . 4 . Any other salient points that should be made. I believe I have given an extensive report on the procedures to follow in appointing commissioners to the housing authority and other aspects of the Housing Authorities Law. In closing, I would simply add that under Section 34310 , it is important to note that the housing authority is given the status of a distinct public corporation, separate from the City, serving as an official branch or agency of the state, not as an agent of the city in which it functions. (See Housing Authority of Los Angeles vs. Los Angeles, (1951) , 38 C2d 853 . ) Thus, there may be additional reasons to consider appointing commissioners pursuant to Section 34270 rather than vesting all the powers and rights of the authority in the City Council because they are separate bodies at risk of having potential conflicts or interests. It is also important to note that under Section 34279, it is provided that for legal services an authority may call upon the chief law officer of the city or may employ its own counsel and legal staff. MRN/jm Enclosure RESOLUTION NO . - 85 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DUBLIN -------------------------------------- DECLARING ITS INTENTION TO ACCEPT OWNERSHIP & RESPONSIBILITY FOR THE ARROYO VISTA PUBLIC HOUSING PROJECT WHEREAS , the City Council of the City of Pleasanton at its meeting of July 16, 1985 , declared its intention to transfer the Arroyo Vista Public Housing Project to the City of Dublin; and WHEREAS , the City of Pleasanton conditioned the transfer of Arroyo Vista to the City of Dublin as follows : 1 . The City of Dublin maintain a local office from which it will manage Arroyo Vista. 2 . The City of Dublin will maintain the existing tenant selection process which provides preferences to Dublin and Pleasanton residents equally; and WHEREAS , the City Council of the City of Dublin deems it to be in the best interest of the community to accept responsibility and ownership of Arroyo Vista in accordance with those conditions put forth by the Pleasanton City Council . NOW, THEREFORE , BE IT RESOLVED that the City Council of the City of Dublin does hereby declare its intention to accept ownership and responsibility of the Arroyo Vista Public Housing Project and concurs with the conditions of transfer set forth by the Pleasanton City Council . 1985 PASSED , APPROVED AND ADOPTED this 22nd day of July, AYES : NOES : ABSENT: i Mayor ATTEST : City Clerk