MAMMOTH LAKES HOUSING, INC.
Board of Directors Meeting

Wednesday, June 22, 2016
6:00 p.m.

Mammoth Lakes Housing Conference Room
587 Old Mammoth Rd.

Minutes

I.    Call to Order

II.    Roll Call
Members: Lindsay Barksdale, Colin Fernie, Larry Johnston, Jiselle Kenny, Kirk Stapp, and Bill Taylor
Staff: Jennifer Halferty and Patricia Robertson
Public: Rusty Gregory, MMSA; Tom Hodges, MMSA; Ron Cohen, MMSA; Ruth Traxler, Associate Planner, Town of Mammoth Lakes

III.    Public Comments
There were no comments from the public

IV.    Approval of Minutes from the May 2, 2016 regular BOD Meeting
Bill Taylor made a motion to approve the minutes. Colin Fernie seconded the motion. The motion passed 5-0. Jiselle Kenny abstained.

V.    Board Member reports
Larry Johnston reported that the Board of Supervisors voted 4-1 to continue the suspension of the Housing Mitigation Ordinance for another 18 months.

Kirk Stapp noted that he had a meeting with Rusty Gregory. He shared the handout that he provided to Rusty at the meeting with the group. Larry Johnston pointed out bullet point number nine which outlines where peer resorts are in terms of workforce housing, as a percentage of overall housing stock. Colin Fernie noted that Aspen has a transfer tax which is no longer legal in Colorado and generates approximately $20 million for their affordable housing program. Kirk Stapp noted that the 1% of TOT that was allocated to housing was proposed at a time when the Town of Mammoth Lakes was watching how other communities funded their housing programs, and currently the mechanism is not working properly. Jennifer Halferty noted that Breckenridge has a very successful program.

Lindsay Barksdale mentioned that her neighbors at San Joaquin Villas listed their unit for sale. There were at least two local families that were interested in the unit; however, within 12 days a second homeowner out bid the other families and purchased the unit.

VI.    MLH monthly status report
Jennifer Halferty reported that the quarterly Cap & Trade auction came in much lower than was anticipated. This will affect the funding the Affordable Housing & Sustainable Communities Program by about $40-50 million.

MLH is working with three first-time homebuyer clients who are in escrow – 1 in Lee Vining and 2 in Mammoth.

Jennifer Halferty noted that the 2011 Needs Assessment was current through 2015. It may be time to consider having the data updated. The Needs Assessment is conducted through local, on the ground, surveys of employers, employees, in-commuters, and other stakeholders.

Larry Johnston noted that there are 40 families on the waiting list for a rental unit. Jennifer Halferty confirmed that people continue to sign up and that the list has grown 20% compared to this time last year.

Rusty Gregory asked how the household in Lee Vining was being assisted to purchase a home. Jennifer Halferty stated that MLH won a State grant of $1 million CalHome dollars to assist households purchase manufactured homes throughout the region. Additionally, the household has members that work for the Mountain. Larry Johnston also noted that Mono County has a Revolving Loan Fund set up to assist MLH purchase back deed restricted ownership units for their preservation.

VII.    Review and possible adoption of Resolution 16-02; authorizing the creation of a cash risk reserve fund
Jennifer Halferty gave an overview of the Cash Risk Reserve Fund policy. She explained that this reserve was only an operating reserve, and that at a later time the Board could discuss specific reserves that would serve the organization’s strategic priorities.

Colin Fernie asked if a base percentage of the operating budget was looked at as a metric to determine the fund balance. Jennifer Halferty explained that the metric used did not involve a base percentage of the operating budget, but factored in different risk metrics. She noted that the recommended fund balance could be funded today.

Bill Taylor asked if any upcoming projects would be impacted by funding the risk reserve today. Jennifer Halferty explained that there were no potential projects that would be impacted. She recommended that the reserve balance be revisited at least every two years to make sure that the organization is on track.

Kirk Stapp made a motion to adopt Resolution No. 16-02 authorizing the creation of a cash risk reserve fund. Larry Johnston seconded the motion. The motion passed 6-0.

VIII.    Review and possibly adopt policy 807 Employee Bonuses
Jennifer Halferty gave an overview of the proposed policy. Bill Taylor noted that he had done some research regarding what nonprofits do as a standardized method of determining bonuses, based on what is acceptable to the IRS. He found a questionnaire that some companies use during the evaluation.

Colin Fernie noted that historically a wide range has been given and that 17% seemed like a large percentage as a maximum, although that amount would not be guaranteed to be given.

Bill Taylor noted that he could not find a customary cap to bonuses in his research. Historically, the organization has maintained salaries at a lower level so that during financial hard times, they do not need to renegotiate contracts and back track on compensation.

Kirk Stapp made a motion to adopt policy 807 Employee Bonuses. Jiselle Kenny seconded the motion. The motion passed 6-0.

IX.    Update on the feasibility analysis for workforce housing on the affordable housing parcel/Shady Rest Parcel
Jennifer Halferty explained that MLH held stakeholder meetings in May with the architect and a planner from the Dahlin Group. The first meeting was for stakeholders to articulate their desires for the site. Then the Dahlin Group spent some time sketching and producing a preliminary draft of the design. At an afternoon session, stakeholders could view the preliminary draft and provide feedback. Additionally, a representative from the Strategic Growth Council, which oversees the Affordable Housing & Sustainable Communities Program (AHSC), funded through Cap & Trade, spoke on the requirements and guidelines of the program.

Jennifer Halferty explained how the draft concept plan created by Dahlin has broken the potential development into different phases. While the financial analysis will be brought to the Board at their August meeting, it is the intention to apply for Cap & Trade funding in the next round for the funding of all of the infrastructure as well as Development Opportunity 1.

The draft concept plan was reviewed by the Board. Jennifer Halferty explained that the draft plan complies with the current mobility plan and existing connectors, while also providing ample green space and community benefits, including a community center, childcare facility, amphitheater, and bike pump park. The draft currently includes approximately 250 units of workforce housing for locals earning up to 120% AMI, as currently approved under the adopted Master Plan and zoning code.

Jiselle Kenny commented that she was happy to see the implementation of the bike pump track on the site, since that is one of the current uses. Lindsay Barksdale and Bill Taylor both agreed and thought that the location of the bike pump track was also good, since it invites the adjacent residential areas in and the community benefits support the surrounding, existing neighborhoods.

Bill Taylor asked about item #4 which is labeled “passive open space.” Jennifer Halferty explained that this portion of the development was left as a flexible piece of space which could be used to buffer the existing commercial along Laurel Mountain Road and Main Street with mixed-use, shared parking, or other function that the Town might want to implement.

Colin Fernie asked if the draft concept plan took into consideration the current trail system. Jennifer Halferty confirmed that it did and stated that all landscaping would be water-wise. It is the intention to preserve as many trees as possible. Colin Fernie also asked for clarification on the ownership portion of the development. Jennifer Halferty confirmed that there would be approximately 55 ownership units that would be available for the 80-120% AMI households and feasible in two phases. Larry Johnston noted that it might not be ideal to have the ownership units directly across the street from the multifamily units.

Rusty Gregory asked if the concept plan would require an amendment to Town policy. Jennifer Halferty confirmed that the draft concept plan as proposed did not require any amendments. The draft concept plan is consistent with the current General Plan, zoning code, and adopted Master Plan. Density Bonuses are permitted through State law as well as Town policy. Jennifer Halferty noted that the net density of the development phases would need to be a minimum of fifteen units/acre to be competitive for the grant funding.

Bill Taylor asked what the next steps were. Jennifer Halferty explained that the financial feasibility analysis would be complete by the August Board meeting. After that, MLH will work with Town staff to schedule a presentation with the Planning & Economic Development Commission as well as the Town Council. Ideally, an application for up to $20 million in Cap & Trade funds would be make in the next round (concept applications due March 2017). Staff will continue to reach out to the owner of the site.

Rusty Gregory asked if MLH would bring forth the draft concept plan to the PEDC and Town Council before having site control. Jennifer Halferty confirmed that the analysis and draft concept plan were part of the Town Council-NGO Alignment process where MLH was tasked with providing an analysis of how to leverage State Cap & Trade funds in town. Rusty Gregory stated that he wants to help create progress and if that means putting up land, or capital into the deal, or facilitating that he is willing to participate in the discussions.

Ruth Traxler stated that the Town is invested in making an affordable housing project work on the Shady Rest site.

X.    Discussion of upcoming joint meeting between the MLH Board and the Mammoth Lakes Town Council
The meeting has been postponed. Jennifer Halferty will alert the Board once it has been rescheduled. It will probably take place sometime in August or September.

XI.    Discussion of a possible community stakeholder meeting on the topic of workforce housing
Kirk Stapp explained that he believes it is important for MLH to hold stakeholder meetings regarding workforce housing needs, what MLH can help with, and what others can bring to the table. There was consensus amongst the board. There was staff direction to convene a meeting or series of meetings.

XII.    Council Member recap for the Town Council meeting

  1. MLH is doing due diligence on the Shady Rest/workforce housing parcel and contracted an architect to meet with stakeholders and draft a conceptual plan. MLH will reach out to the owner to discuss the draft.
  2. MLH is planning to hold stakeholder meetings regarding the workforce housing needs in town.

CLOSED SESSION

XIII.    Pursuant to Government Code Section 54956.8, the Board will hold a closed session to discuss property negotiations and possible staff directions and/or action – APN 292-005-000-000

Property: Nordica #5
Negotiating Parties: Jennifer Halferty and her designees representing MLH (prospective seller); prospective buyer
Under Negotiation: Terms of sale

XIV.    Pursuant to Government Code Section 54957, the Board will hold a closed session to discuss a performance evaluation, title: Executive Director

Announcement of action taken in closed session.

The Board decided to sell the Nordica unit at the recommended price to a low-income household. Bill Taylor made a motion to list the Nordica unit for sale. Lindsay Barksdale seconded the motion. The motion passed 6-0.

The Board renewed the contract for Jennifer Halferty, Executive Director, through April 15, 2019. A one-time bonus payment in the amount of $13,500 was approved for the previous year’s work. A one-time bonus payment in the amount of $7,000 was also approved for Patricia Robertson, Grant & Financial Associate, also for the previous year’s performance. Both are subject to normal tax and retirement withholdings.

XV.    Adjourn