Board of Directors Meeting

Monday, December 13, 2004
3:30 p.m.

Mammoth Lakes Housing, Inc. Office
587 Old Mammoth Rd. #5
(Ground Floor, Sherwin Plaza 3)


I. Call to Order

II. Roll Call
Members: Mark Carney, Rusty Gregory, Byng Hunt (Director), Kirk Stapp (President), and Rob Clark

III. Public Comments
John Eastman announced that Mono County Paramedics filled three positions that the service tried to fill for 1-½ years. They filled the positions by recruiting individuals from outside the area. The employees will commute from Reno, Lake Tahoe and Southern California. Mr. Eastman felt that this seemed to be the trend.

Executive Director Clark announced MLH’s $3.5 million HOME grant award.

IV. Approval of Minutes of October 4, 2004 Board Meeting
Action: Moved by Board Director Byng Hunt, seconded by Board President Kirk Stapp, and carried by a 4-0-1 vote to approve the Minutes of October 4, 2004.

V. Review and Adopt Strategic Planning Session Report
Ms. Clark asked the Board to review and adopt the Strategic Planning Report for distribution to the public.

The Board discussed the Report and made suggestions and comments. Mr. Stapp suggested that MLH contemplate a name change as the Company broadens its mission. He also suggested that the Report be divided into two separate documents. One would outline MLH’s intent and rationale, and the other would map out the priorities of the next year. He suggested that the documents be more focused, direct and concrete.

Ms. Clark noted that the document was meant to be a summary so that the public could understand why certain decisions were being made. Mr. Stapp responded by saying that too much summary for a working document made it difficult to evaluate the team.

Board member Rusty Gregory suggested that the document be broken down into smaller bullet points that tied into performance review items and budgetary items. The Board decided to have this type of document for the next fiscal year.

Board member Mark Carney suggested that the Report be reviewed one last time for typos and grammatical errors. The Board requested Clark incorporate the values, vision, mission, strategies and tactics framework into the document.

VI. Review of First Quarter Compiled Financial Statements
Based on the September 30, 2004 balances in the cash accounts, Mr. Carney suggested that MLH keep its operating funds in an investment account. Ms. Clark informed the Board that since the September compilation, MLH paid out those funds for construction expenditures. Ms. Clark advised the Board that tenant improvement costs were not budgeted into the September statement, but would be included in the Budget Amendment.

VII. Review and Adoption of Proposed FY 04-05 Budget Amendment
Ms. Clark asked the Board for the authority to make additional expenditures within the fiscal year. She advised the Board that revenues increased by $119,100 and she requested authority to increase spending by $21,532. The net income for the fiscal year increases from $68, 228 to $165,796 as a result of the Amendment. The Board decided that as long as the variances were disclosed and the net income was not reduced, staff did not need Board authority to make additional budget amendments in the future. Mr. Stapp moved to adopt the Budget Amendment.

VIII. Discussion and Possible Action Regarding Condominium Acquisition Strategy
Ms. Clark asked for direction from the Board to design a condominium acquisition strategy that would allow new development to mitigate its housing impact by acquiring existing condominium units. The Board discussed quality and unit types that would be acceptable for purchase. They agreed that clear parameters had to be given to developers through the Planning Commission. Options for mitigation were discussed.

Option 1 – Offsite/Onsite-Developer would manage or resell at Deed-restricted prices. If built offsite, developer would have to build more units than if they built onsite.
Option 2 – Developer would buy units and give to MLH.
Option 3 – Developer would buy units, resell them with a deed-restriction and give the proceeds to MLH.

Mr. Gregory suggested MLH develop a matrix to show all options. He also was concerned about in-lieu fees because they did not always produce units.

Ms. Clark recommended that MLH should work with Town staff to draft a policy for the Planning Commission’s consideration.

The Board directed staff to develop a matrix of options, write out the finer details of a policy, meet with Town Staff and bring back the options to the MLH Board prior to taking a policy to the Commission.

IX. South Gateway Joint Planning Effort Progress Report
Ms. Clark reported the hiring of a third-party planner to design a site map and do a bubble-level drawing. She stated that the housing component needed a lot of work and that it was necessary to flesh out ways to assist the Foundation in building college housing.

The Board discussed the past transactions and past discussions on the Gateway deal. The Board stated that all the stakeholders needed to reach an agreement on the goal and costs for the project.

Mr. Gregory stated that trying to solve all issues simultaneously was a drawback. He suggested that MLH take a step back to allow the entities to work on a Land Plan first and then discuss how to finance it. He suggested that the credits be taken off the table.

Mr. Clark discussed the current process and who the players were.

Mr. Stapp stated that student housing would not get off the ground in 2005. He stated his concern over rushing the process and having to use TOT funds. The Board encouraged Ms. Clark to continue participating in the process but to concentrate on the Land Plan first.

X. Discussion and Possible Action Regarding Use of Mammoth 8050, LLC., In-lieu Housing Funds
Ms. Clark presented the status of the 8050 in-lieu funds and the various options for use of the funds. The Board discussed whether the money would keep the Gateway Agreement moving forward, or if the money should be spent elsewhere. Ms. Clark suggested that MLH use the funds to pay down the Meridian Project Construction loan or on a homebuyers assistance program if the funds were not otherwise invested in the near future. The Board decided to request the Town consider options on how to invest those funds.

XI. Discussion and Possible Action Regarding MLH Position on Density Bonuses for Affordable Housing
Ms. Clark presented the letter she wrote to Town Council regarding the Density Bonus Issue dated October 6, 2004. She asked the Board to review President Stapp’s comments and to review the options. The question was raised as to whether the Town Council should reconsider its policy for double density, unless the project provided 100% affordable workforce housing. There were other considerations discussed.

Mr. Gregory advised staff that MLH should let the politics play itself out on the issue and that the issue should be weighed from project to project. Mr. Hunt stated that the County was continuing to evaluate the issue. The Board agreed the MLH position on the policy should remain.

XII. Discussion and Possible Action Regarding Developer Impact Fees for Affordable Housing
Ms. Clark presented the Developer Impact Fees (DIF) required for the Old Mammoth Road and Meridian Court projects. She presented three options that Council could consider regarding DIF for Affordable Housing projects.

Option 1 – Request Council wave DIF for any project that includes voluntary affordable housing.
Option 2 – Request Council waive DIF for any project that is 100% deed-restricted and voluntarily provided.
Option 3 – Do not request Council waive DIF for any affordable housing projects.
Mr. Clark stated that he implemented interim fees and that Town Staff was continuing to work on an updated DIF schedule. Mr. Stapp wanted to ensure that MLH continued to participate in the DIF issue and the Board agreed to not request Council take any action on fee waivers at this time.

XIII. Discussion and Possible Action Regarding MLH Role in Sales Tax or Guest Services Tax Initiatives
Mr. Stapp presented and discussed a working draft for the Guest Services Card Campaign. He asked for Board and staff input. Mr. Stapp stated that he wanted to get visitors and the community to understand the benefits of the Campaign. He identified possible beneficiaries and the potential revenues that could be generated from the Campaign. The possible uses of the funds would be Recreation, Transportation, Affordable Housing, Child Care, and the Library.

Mr. Gregory suggested that instead of additional taxes on the guests, the Town should find a way to get more people into Town, which would create more revenue. Mr. Stapp will be presenting the Guest Services Card proposal to Council in January.

XIV. Executive Director and Board Reports
Ms. Clark previewed the Draft Housing Needs Assessment findings for the Board. Assessment highlights were that employers would be willing to house their employees and that over 65% of employees working in Mammoth earned less than 120% of the AMI. Ms. Clark stated that the Needs Assessment would be presented to the different agencies this week. Recommendations from the different communities would be taken and a final document would be generated. The Council of Governments would review the report and comments and make recommendations in January.

Ms. Clark updated the Board on the progress of the Projects. Old Mammoth was waiting on weather; the 20 modules for one 8-unit building were delivered to a secure site to await completion of the foundation. She stated that the project would stay on schedule despite soil issues and weather.

The Meridian project had its first building framed, with framing to begin on the next building. Three foundations were poured.

MLH will be doing community outreach the first of the year for the Lupin/Vereuck project. Construction will begin in 2006. MLH will fund this project in the same fashion as the Old Mammoth project: with HOME funds, 4% tax credits and multi-family housing bonds.

Ms. Clark stated that the CDBG application is due in February. MLH will be requesting $500K to help support the Lupin/Vereuck projects.

Ms. Clark updated the Board on the progress of the Mono County Housing Mitigation Ordinance. She stated that she had a meeting with the County Planning Staff and Charlie Long to discuss the issue. A Draft is scheduled for January.

Ms. Clark discussed the MUSD Crowley Property Public Outreach. The Board advised her to decline involvement until a new School Board was elected. She was encouraged to continue a dialogue regarding the progress of the site.

XV. Discussion and Possible Action Regarding Shady Rest Tract Development
Before discussion commenced, Mark Carney excused himself from the remainder of the meeting, as he had a conflict of interest regarding the Shady Rest Development.

Ms. Clark stated that the Shady Rest Development was in a preliminary stage. The message conveyed by Council to the developers was that the land was designated for workforce housing. The definition of Workforce Housing was still up in the air. Ms. Clark advised the developer to seek out a for-profit, affordable housing development partner. Another option was to give MLH some land. The Board advised that since the issue was still in the General Plan Update process that it was too preliminary for MLH to get too involved. Mr. Stapp requested that the item be in on-going agenda item.

Next Board Meeting Scheduled for January 3, 2004 – Staff recommends canceling.
Next Board Meeting Scheduled for February 7, 2005, 6:00 p.m., MLH Office