HomeMy WebLinkAboutRDA Agenda Packet 071205•
CITY OF ATASCADERO
COMMUNITY REDEVELOPMENT AGENCY
AGENDA
Tuesday, July 12, 2005
6:30 P.M.
Atascadero Lake Pavilion
9315 Pismo St.
Atascadero, California
ROLL CALL: Chairperson Pacas
Vice Chairperson Clay
Board Member Luna
Board Member O'Malley
Board Member Scalise
APPROVAL OF AGENDA: Roll Call
COMMUNITY FORUM:
BOARD ANNOUNCEMENTS AND REPORTS: (On their own initiative, the Board
Members may make a brief announcement or a brief report on their own activities.
Board Members may ask a question for clarification, make a referral to staff or take
action to have staff place a matter of business on a future agenda. The Board may take
action on items listed on the Agenda.)
A. MANAGEMENT:
1. Senior Hotel Project
■ Fiscal Impact: The sum of $142,918.00 to be paid from the Agency
Low/Moderate Housing Fund.
■ Recommendations: Board:
1. Agency Board approve Draft Resolution; and,
2. Agency Board authorize Executive Director to enter into an
Indemnification Agreement with the San Luis Obispo Non -Profit
Housing Corporation; and,
• 3. Agency Board authorize development impact fee assistance in the
amount of $142,918 from the Agency Low/Moderate Housing Fund.
[Executive Director]
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2. Sunken Gardens Enhancement Project Award (City Bid No. 2005-014
■ Fiscal Impact: Engineer's Estimate is $887,290.00 from the Community is
Agency bond proceeds.
■ Recommendation: Board review staff report and authorize the Executive
Director to execute a contract with the successful lowest bidder on this
project. [Public Works]
B. EXECUTIVE DIRECTOR REPORT: Wade McKinney, Executive Director
C. ADJOURNMENT
E
•
ITEM NUMBER: RA A-1
DATE: 07/12/05
Community Redevelopment Agency of Atascadero
Staff Report - Executive Director
RECOMMENDATIONS:
:4. •
Senior Hotel Project
1. Agency Board approve Draft Resolution; and,
2. Agency Board authorize Executive Director to enter into an
Indemnification Agreement with the San Luis Obispo Non -Profit Housing
Corporation; and,
3. Agency Board authorize development impact fee assistance in the amount
of $142,918 from the Agency Low/Moderate Housing Fund.
DISCUSSION:
Background: The San Luis Obispo Non -Profit Housing Corporation has proposed a
two-story 19 -unit retirement hotel for low-income senior citizens on a 0.92 -acre site
located at 9705 EI Camino Real, Atascadero. The building will include a 730 square
foot community room, elevator, and laundry facilities on each floor. There will be
nineteen covered parking spaces and six guest parking spaces at an estimated
construction cost of $4,620,100: This is an Affordable Housing Project for those with
income less than 50% of median income. Participation by the Agency will work to
improve the project's quality and make the project financially feasible.
Rational: The Community Redevelopment Agency Implementation Plan sets as a
housing program "[d]evelopment of new, affordable units." Redevelopment law requires
that "not less than twenty percent (20%) of all taxes allocated to the Agency pursuant to
Section 33670 of the California Health and Safety Code shall be used by the Agency for
the purposes of increasing, improving and preserving the City's supply of housing for
persons and families of low or moderate income ..."
Section 33334.6 (a) of the California Health and Safety Code states in pertinent part
that "[t]he Legislature finds and declares that the provision of housing is itself a
fundamental purpose of the Community Redevelopment Law and that a generally
inadequate statewide supply of decent, safe, and sanitary housing affordable to persons
and families of low or moderate income . . . threatens the accomplishment of the
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primary purposes of the Community Redevelopment Law ...." "The Legislature further
finds, and declares that the provision and improvement of affordable housing, as
provided by Section 33334.2, outside of the redevelopment project areas can be of
direct benefit to those projects in assisting the accomplishment of project objectives
whether or not those redevelopment projects provide for housing within the project
area."
The Community Redevelopment Agency Plan states that "[t]he Agency may use these
funds to meet, in whole or in part the replacement housing provisions set forth in this
Plan and Community Redevelopment Law. These funds may be used inside or outside
the Project Area provided, however, that funds may be used outside the Project Area
only if findings of benefit to the Project Area are made as required by Section 33334.2
of the Health and Safety Code."
Assembly Bill 1290 allowed an agency to count units that receive Agency financial
support and made available at affordable housing cost outside a project area toward the
agency's project area housing production requirement, on a two-for-one basis: that is,
two affordable units created outside a project area will count the same toward the
inclusionary obligation as one unit created inside a project area. On January 1, 2002,
Assembly Bill 637 made permanent the "two for one" provision.
No affordable housing units have been developed within the Atascadero Community
Redevelopment Agency Project Area. If the funding request is approved, the Agency
will help to provide 19 new low-income affordable units within the City for an investment
of $7,522 per unit, nine of which can be counted toward the Agency's project area
housing production requirement.
In consideration of receiving the requested assistance, the San Luis Obispo Non -Profit
Housing Corporation has agreed to indemnify the Redevelopment Agency and the City
of Atascadero.
Conclusion: Providing assistance to the Senior Hotel project is consistent with the
Redevelopment Plan, is permitted pursuant to Redevelopment Law, and will add much
needed units to the overall affordable housing stock within the City. Staff recommends
approval of the Draft Resolution as presented, and Agency Board authorize funding as
requested.
FISCAL IMPACT:
The sum of $142,918.00 to be paid from the Agency Low/Moderate Housing Fund.
ALTERNATIVES:
Deny approval of Draft Resolution. This option is not recommended given the need
within the City for affordable housing.
ATTACHMENTS:
1. Draft Resolution
2. Indemnification Agreement
M
DRAFT RESOLUTION
A RESOLUTION OF THE ATASCADERO COMMUNITY
REDEVELOPMENT AGENCY, FINDING THAT THE USE OF
REDEVELOPMENT AGENCY HOUSING FUNDS TO ASSIST THE
DEVELOPMENT OF AN AFFORDABLE SENIOR. HOUSING PROJECT
WITHIN THE CITY IS OF BENEFIT TO THE REDEVELOMENT
PROJECT AREA
WHEREAS, pursuant to the Community Redevelopment Law of the State of California
(Redevelopment Law). the City of Atascadero (City) has adopted a Redevelopment Plan for the
Redevelopment Project Area administered by the Atascadero Community Redevelopment
Agency (Agency); and,
WHEREAS, the Agency is engaged in activities necessary to execute and implement the
Redevelopment Plan for the Atascadero Community Redevelopment Project Area; and.
WHEREAS, there is a well documented need for more affordable housing within the City of
Atascadero; and,
WHEREAS, the San Luis Obispo Housing Corporation has requested development fee assistance
from the Atascadero Community Redevelopment Agency for The Senior Hotel project located at
9705 El Camino Real, Atascadero, in the amount of $142,918.00 to improve the project's quality
and make the project economically feasible, and,
WHEREAS, pursuant to Article 4, Section 400 of the Atascadero Community Redevelopment
Plan, "[njot less than twenty percent (20%) of all taxes allocated to the Agency pursuant to
Section 33670 of the California Health and Safety Code shall be used buy the Agency for the
purposes of increasing. improving and preserving the City's supply of housing for persons and
families of low or moderate income ...," that"[t]hese funds my be used inside or outside the
Project Area provided, however, that funds may be used outside the Project Area only if findings
of benefit to the Project [Area] are made as required by Section 3334.2 of the Health and Safety
Code;" and
WHEREAS, Health and Safety Code Section 33334.6 (a) states in pertinent part that "[t]he
Legislature finds and declares that the provision of housing is itself a fundamental purpose of the
Community Redevelopment Law and that a generally inadequate statewide supply of decent,
safe, and sanitary housing affordable to persons and families of low or moderate income .. .
threatens the accomplishment of the primary purposes of the Community Redevelopment Law . .
. The Legislature further finds, and declares that the provision and improvement of affordable
housing, as provided by Section 33334.2, outside of the redevelopment project areas can be of
direct benefit to those projects in assisting the accomplishment of project objectives whether or
not those redevelopment projects provide for housing within the project area."; and,
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WHEREAS, Health and Safety Code Section 33334.16(g)(1) provides that the Agency may use
low/mod housing funds "inside or outside the project area" subject to a "resolution of the agency
and the legislative body that the use will be of benefit to the project [area] and that "[tlhe
determination by the agency and the legislative body shall be final and conclusive as to the issue
of benefit to the project area;" and,
WHEREAS, in consideration of the Agency's contribution, the San Luis Obispo Non -Profit
Housing Corporation must enter into an Indemnification Agreement with Agency indemnifying
Agency and City; and,
WHEREAS, the Agency Board has duly considered the impact of assisting The Senior Hotel
project to the Project Area, and trust that using Agency housing funds for this purpose is of
benefit to the Project Area by increasing the low and moderate income affordable housing stock
within the City of Atascadero consistent with the intent of the California Legislature.
NOW, THEREFORE, BE IT RESOLVED by the Community Redevelopment Agency of the
City of Atascadero as follows:
1. The Agency finds and determines, based on information and belief, that the use of
Agency housing funds to assist The Senior Hotel project in the amount of $142,918.00 is of
benefit to the Project Area.
2. That the Executive Director for the Redevelopment Agency is hereby authorized to
sign said Indemnification Agreement, a copy of which is on file at the Office of the City Clerk,
on behalf of the Atascadero Community Redevelopment Agency.
3. This Resolution will take effect upon adoption.
PASSED AND ADOPTED at a regular meeting of the City Council of the City of
Atascadero, California, held on this
ATTEST:
Marcia McClure Torgerson,
Board Secretary
A
day of 2005.
Community Redevelopment Agency
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Becky Pacas, Chairperson
APPROVED AS TO FORM
General Council
STATE OF CALIFORNIA )
COUNTY OF SAN LUIS OBISPO) ss
CITY OF ATASCADERO )
I, Marcia McClure Torgerson, City Clerk of the City of Atascadero. California, do hereby
certify that the foregoing Resolution No. was duly and regularly adopted at a regular
meeting of the City Council of the City of Atascadero, California, held on the day of
2005, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAINED:
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By:
Marcia McClure Torgerson, C.M.C..
City Clerk
N
CITY OF ATASCADERO
COMMUNITY REDEVELOPMENT AGENCY
INDEMNIFICATION AGREEMENT
1. PARTIES AND DATE.
This Indemnification Agreement is made this day of , 2005 by and
between San Luis Obispo Non -Profit Housing Corporation, a California non-profit corporation
(hereinafter referred to as "Developer") and the City of Atascadero Community Redevelopment
Agency, a municipal corporation (hereinafter referred to as "Agency").
2. RECITALS.
2.1 Developer is the developer of a low-income senior housing project ("Project")
know as The Senior Hotel on that certain real property, generally located at 9705 El Camino
Real, Atascadero, CA 93422, and which is more particularly described in Exhibit "A," attached
hereto and incorporated herein by reference ("Property").
2? Developer has acquired or is acquiring all necessary approvals for the project from the
City of Atascadero and all other relevant authorities.
2.3 Developer wishes Agency to provide financial support to the Project, and willing to
indemnify the Agency with regard to any claims that may arise from the Project, in consideration of
such financial support from Agency.
2.4 Agency finds and determines that its financial support of the Project furthers apublic
purpose and is for the public benefit of the City of Atascadero and its citizens, and is willing to
provide financial support for the Project in exchange for the indemnification provided by Developer
hereunder.
3. TERMS.
3.1 Financial Support. In consideration of the indemnification provided hereunder,
Agency agrees to contribute the sum of $142.918.00, for development impact fees for use
exclusively in constructing the Project. Developer shall provide Agency, upon Agency's request,
with any and all receipts, invoices and other documentation related to the Project. Agency
participation in the Project is contingent upon an approved and completed project. Agency funds
will be paid only following the final inspection, and issuance of the Occupancy Certificate.
3.2 Indemnification. In consideration of Agency's contribution, Developer shall
defend, indemnify and hold the Agency and City, their officials, officers, employees, contractors,
volunteers and agents free and harmless from any and all claims, demands, causes of action, costs,
expenses, liability, loss, damage or injury, in law or equity, to property or persons, including
wrongful death, in any manner arising out of or incident to the Project or Agency's contribution
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hereunder. including without (imitation the payment of all consequential damagesand attormvs' fees
and other related costs and expenses. Developer shall defend, at Developer's own cost, expense and
risk, any and all such aforesaid suits, actions or other legal proceedings of every kind that maybe
brought or instituted against Agency and City. their directors, officials, officers. employees, agents or
volunteers. Developer shall pay and satisfy any judgment, award or decree that may be rendered
against Agency or its officials, officers. employees. contractors, volunteers or agents, in any such
suit, action or other legal proceeding. Developer shall reimburse Agency and City, their directors,
officials, officers, employees, contractors, volunteers and/or agents, for any and all legal expenses
and costs incurred by each of them in connection therewith or in enforcing the indemnity herein
provided. Developer's obligation to indemnify shall not be restricted to insurance proceeds, if any,
received by the Agency and City, their directors,. officials, officers, employees, contractors,
volunteers or agents.
3.3 Insurance. Developer shall procure and maintain at all times insurance against any
claims. demands, causes of action and injuries to persons or damages to property which may arise
from or in connection with the use of the Property, or Agency's contribution hereunder, with a
combined single limit of not less than One Million Dollars ($1,000,000). Such insurance policy shall
be endorsed to cover the Agency, its directors, officials, officers, employees. agents and volunteers as
additional insureds. Such insurance policy shall also be endorsed to state that coverage shall not be
suspended, voided, reduced or canceled except after thirty (30) days prior written notice has been
given to Agency. Simultaneously with the execution of this Indemnification Agreement. Developer
shall show proof of insurance that satisfies the requirements of this Section 3.3.
3.4 Prevailing Wages. Developer is aware of the requirements of California Labor Code
Section 1720, et seq., and 1770, et seq.. as well as California Code of Regulations, Title 8, Section
16000, et se ., ("Prevailing Wage Laws"). which require the payment of prevailing wage rates and
the performance of other requirements on "public works" and "maintenance" projects. If the Project
constitutes an applicable "public works" or `'maintenance" project, as defined by the Prevailing
Wage Laws, and if the total compensation is $1,000 or more, Developer agrees to fully comply with
such Prevailing Wage Laws. Developer represents and warrants that it has consulted with legal
counsel with regard to the Prevailing Wage Laws. Developer agrees that Developer will assume and
bear full responsibility for determining the applicability of, and compliance with, the Prevailing
Wage Laws (including federal laws, if applicable). Developer shall defend, indemnify and hold the
Agency, its officials, officers, employees, contractors, volunteers and agents free and harmless from
anv claim or liability arising out of any failure or alleged failure to comply with the Prevailing Wage
Laws, as set forth in Section 3.2.
3.5 Advice of Counsel. Developer represents and warrants to the Agency that Developer
has had the opportunity, and has been represented by legal counsel of Developer's choosing in the
negotiation, drafting and execution of this Indemnification Agreement. Developer acknowledges
that this Indemnification Agreement is the product of mutual arms -length negotiations, and that
Developer hereby enters into this Indemnification Agreement freely and voluntarily.
3.6 Attornev's Fees. If either party commences an action against the other party, either
legal, administrative or otherwise, arising out of or in connection with this Indemnification
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Agreement.. the prevailing party in such litigation shall be entitled to have and recover from the
losing party reasonable attorney's fees and all other costs of such action.
3.7 Governing Law. This Indemnification Agreement shall be governed by the laws of
the State of California. Venue shall be in San Luis Obispo County.
3.8 Assianment. This Indemnification Agreement shall not be assigned by Developer
without the express written consent of Agency, in Agency's sole discretion.
3.9 Authority to Enter Agreement. Each party warrants that the individuals who have
signed this Indemnification Agreement have the legal power, right, and authority to make this
Indemnification Agreement and bind each respective party.
3.10 Counterparts. This Indemnification Agreement may be signed in counterparts, each
of which shall constitute an original.
3.11 Entire Agreement. This Indemnification Agreement comprises the entire
understanding between the parties concerning the subject matter of this Indemnification Agreement
and supersedes and replaces all prior negotiations and proposed agreements, written and oral.
City of Atascadero
Community Redevelopment Agency
San Luis Obispo Non -Profit Housing
Corporation, a California non-profit
corporati on
By: By:
Wade McKinney
Executive Director/City Manager
Its:
Dated:
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Dated:
George Moylan
EXHIBIT "A„
Description of Property
1. Project Address: 9705 El Camino Real, Atascadero, CA 93422, San Luis Obispo County.
2. APN 030-472-009
3. [Deed Description]
Description of the Project
The project will consist of a two-story 19 -unit retirement hotel for low-income senior citizens on
a 0.92 -acre site. The building will include a 730 square foot community room, elevator, and
laundry facilities on each floor. There will be nineteen covered parking spaces and six Quest
parking spaces.
1. Applicant / Representative: San Luis Obispo Non -Profit Housing Corporation
Contact: George Moylan
P.O. Box 13657, San Luis Obispo, CA 93406
Phone: 805/594-5302
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ITEM NUMBER: RA A-2
DATE: 07/12/05
Community Redevelopment Agency of Atascadero
Staff Report - Public Works Department
Sunken Gardens Enhancement Project Award
City Bid No. 2005-014
RECOMMENDATION:
Board review staff report and authorize the Executive Director to execute a contract with
the successful lowest bidder on this project.
DISCUSSION:
In the summer of 2004, RRM Design Group was hired to formalize an improvement plan
for the Sunken Gardens. The proposed improvements include sidewalks, bulb outs,
crosswalk, planters, benches, and an upgraded fighting and irrigation system.
At the direction of the City Council, Staff completed construction documents for the
Sunken Gardens Enhancement Project.
All environmental reviews have been obtained, and an arborist/biologist team has been
hired to monitor the health of the trees during construction.
The project was advertised June 17, 2005. The bids will be opened on July 8, 2005 and
will be reviewed for accuracy and compliance with the City of Atascadero Procurement
Policy. Staff will present to the Council, at the July 12, 2005 meeting, the City Clerk's
Bid Summary, revealing who was the successful low -bidder.
The anticipated start of construction is August 1, 2005, with construction scheduled to
be completed during the first week of October.
FISCAL IMPACT:
Engineer's Estimate is $887,290.00. The funding source is Community Redevelopment
Agency Bond Proceeds. On June 28, 2005, the Community Redevelopment Agency
authorized $1,300,000 for the completion of this project.
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Community Redevelopment Agency of Atascadero
Staff Report - Public Works Department
Sunken Gardens Enhancement Project
City Bid No. 2005-014
RECOMMENDATION:
Council authorize the execution of a contract with R. Burke Corporation in the amount of
$868,858.50 for the Sunken Gardens Enhancement Project.
DISCUSSION:
Background:
Staff and RRM design Group began working on conceptual design for improvements to
the Sunken Gardens in the summer of 2004. The proposed improvements include
sidewalks, bulb outs, crosswalk, planters, benches, and an upgraded lighting and
irrigation system.
The Public and City Council have given formal input on the design features of the
project. At the direction of the City Council, Staff completed construction documents for
the Sunken Gardens Enhancement Project and called for bids.
All environmental reviews have been obtained, and an arborist/biologist team has been
hired to monitor the health of the trees during construction.
Analysis:
The project was advertised June 17, 2005. Three bids were received. The bids were
opened and publicly read on July 8, 2005.
The bids were reviewed for accuracy and compliance with the City of Atascadero
bidding requirements. Wysong Construction Company was the apparent low bidder at
bid opening. However, after reviewing the bid documents it was determined that
Wysong Construction Company did not adhere to a subcontracting requirement, which
requires subcontractors to perform less than 50% of the contract.
The next responsible bidder was R. Burke Corporation with a bid price of $868,858.50.
C;nnrli minn-
Staff recommends that the City Council award a contract to R. Burke Corporation for the
Sunken Gardens Enhancement Project.
FISCAL IMPACT:
EXPENDITURES
Design
$86,886
Construction
$868,858
Inspection / Testing / Construction Administration 15%
$130,329
Contingency 20%
$173,772
Total Estimated Expenditure:
$1,259,845
REVENUES
Redevelopment Agency Bond Fund $1,300,000
Total Revenues: $1,300,000
ALTERNATIVES:
1. Approve the staff recommendations as stated in the Staff Report.
2. Do not award the contract. Direct staff to re -bid the project.
ATTACHMENTS:
Bid Summary
City of Atascadero
Office of the City Clerk
BID SUMMARY
TO: City Council
wj
FROM: Marcia McClure Togerson, C.M.C., City Clerk
BID NO.: 2005-014
OPENED: 2:00 p.m. — 07/08/05
PROJECT: Sunken Gardens Enhancement Project
Three (3) bids were received and opened today as follows:
Bidder
Total Bid Price
MGE Underground
P.O. Box 4189
$ 980,037.75
Paso Robles, CA 93447
R. Burke Corp.
P.O. Box 957
$ 868,858.50
San Luis Obispo, CA 93406
Wysong Construction
8720-B El Camino Real
$ 841,437.00
Atascadero, CA 93422-5351
Attachment: 3 bids